NEW YORK AFTER SIX MONTHS OF WAITING PARAMOUNT COMMUNICATIONS INC SHAREHOLDERS WILL BEGIN TODAY RECEIVING CASH PAYMENTS FOR MORE THAN HALF THEIR HOLDINGS FROM VIACOM INC TAKING ANOTHER STEP TOWARD COMPLETING THE PURCHASE OF THE ENTERTAINMENT GIANT CABLETELEVISION CONCERN VIACOM SAID YESTERDAY IT WOULD ACCEPT TODAY 617 MILLION OR 517404 OF THE SHARES TENDERED TO IT BY PARAMOUNT SHAREHOLDERS VIACOM WILL PAY 107 FOR EACH OF THE SHARES IN A SECOND STEP VIACOM WILL SWAP A PACKAGE OF SECURITIES FOR THE REMAINING PARAMOUNT SHARES IN SEVERAL WEEKS SEPARATELY VIACOM ALSO SAID YESTERDAY THAT IT RECEIVED 125 BILLION YESTERDAY FROM BLOCKBUSTER ENTERTAINMENT CORP TO BE USED TO HELP PAY FOR THE PARAMOUNT STOCK VIACOM IN JANUARY AGREED TO ACQUIRE BLOCKBUSTER IN A STOCKFORSTOCK TRANSACTION IN A MOVE TO STRENGTHEN VIACOM'S HAND IN THE THEN CONTINUING BATTLE WITH QVC INC FOR PARAMOUNT AND AS AN INTERIM STEP IN THE PROPOSED VIACOMBLOCKBUSTER DEAL THE VIDEORENTAL GIANT AGREED TO ACQUIRE 23 MILLION SHARES OF VIACOM CLASS B STOCK FOR THE 125 BILLION BLOCKBUSTER SHAREHOLDERS ARE SCHEDULED TO VOTE ON THE PROPOSED ACQUISITION BY VIACOM IN LATE APRIL OR EARLY MAY THE TRANSACTION FACES OPPOSITION FROM BLOCKBUSTER HOLDERS BECAUSE VIACOM'S SHARES HAVE DECLINED IN VALUE SINCE THE DEAL WAS ANNOUNCED 9403110103 940311 REVIEW & OUTLOOK EDITORIAL ASIDES TAX CUT CONSENSUS IF TAX CUTS HAVE LOST THEIR VOTER APPEAL WHY ARE SO FEW STATE LEGISLATORS WILLING TO OPPOSE THEM THIS WEEK NEW JERSEY GOVERNOR CHRISTIE WHITMAN SIGNED INTO LAW THE FIRST STAGE OF A 30 STATE INCOME TAX CUT IT PASSED BOTH LEGISLATIVE HOUSES WITH ONLY FOUR DISSENTING VOTES IN GEORGIA THIS WEEK THE STATE SENATE UNANIMOUSLY APPROVED DEMOCRATIC GOVERNOR ZELL MILLER'S 100 MILLION INCOME TAX CUT FOR SENIORS AND FAMILIES MR MILLER IS SAID TO HAVE BEEN TOLD BY HIS LONGTIME POLITICAL GURU JAMES CARVILLE THAT A TAX CUT WOULD HELP HIM POLITICALLY NO WORD YET ON THIS FISCAL LOWPRESSURE SYSTEM HEADING TOWARD THE BELTWAY 9403110102 940311 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA BOARD RECOMMENDS LIFTING COMPANY'S DIVIDEND FOR 1994 MEXICAN TELECOMMUNICATIONS GIANT TELEFONOS DE MEXICO SA SAID ITS BOARD HAS DECIDED TO RAISE ITS 1994 DIVIDEND TO 25 CENTAVOS 77 US CENTS A SHARE FROM 15 CENTAVOS IN 1993 THE RECOMMENDATION REQUIRES THE APPROVAL OF HOLDERS OF CLASS AA AND CLASS A SHARES THE PAYOUT WOULD BE MADE IN TWO EQUAL PARTS IN JUNE AND NOVEMBER TO THOSE SHAREHOLDERS AND HOLDERS OF CLASS L SHARES SHAREHOLDERS WILL MEET APRIL 15 9403110101 940311 REVIEW & OUTLOOK EDITORIAL ASPIN'S GHOST LAST WEEK MARINE CORPS GENERAL JOSEPH HOAR OF THE US CENTRAL COMMAND IN THE MIDDLE EAST TESTIFIED BEFORE THE SENATE ARMED SERVICES COMMITTEE THAT THE US LACKS THE AIRLIFT TO SUSTAIN EVEN ONE MAJOR REGIONAL CONFLICT HE WAS THE LATEST IN A LONG LINE OF MILITARY LEADERS TO TESTIFY ABOUT THE SERVICE'S INABILITY TO MOVE TROOPS QUICKLY AND SUSTAIN THEM ON THE BATTLEFIELD PUT ANOTHER WAY THE GHOST OF LES ASPIN STILL HAUNTS THE DEFENSE DEPARTMENT BACK IN MARCH 1992 THENHOUSE ARMED SERVICES COMMITTEE CHAIRMAN ASPIN BEGAN PRESSING HIS OPTION C PLAN TO CUT THE US MILITARY DURING CONGRESSIONAL HEARINGS THEN THE CHIEFS OF STAFF OF THE ARMY AND AIR FORCE THE SECRETARY OF THE NAVY JOINT CHIEFS CHAIRMAN COLIN POWELL AND DEFENSE SECRETARY DICK CHENEY ALL CRITICIZED THE ASPIN PLAN AS CUTTING TOO DEEP TOO FAST COLIN POWELL PREDICTED A HELL OF A LOT OF CASUALTIES IN A WAR UNDER THE ASPIN PLAN AIR FORCE GEN MERRILL MCPEAK WAS LESS POLITE SAYING THE ASPIN PLAN WAS DESIGNED BY SOMEONE WHO MUST BE IN A POSITION OF NOT HAVING TO TAKE RESPONSIBILITY FOR THE COMBAT RESULTS DESPITE ALL THIS THE PLAN MOVED AHEAD AND WHEN MR ASPIN BECAME DEFENSE SECRETARY IT BECAME THE BLUEPRINT FOR THE CLINTON MILITARY RESTRUCTURING LAST SEPTEMBER SECRETARY ASPIN AND A DEPARTING COLIN POWELL PRESENTED THE ADMINISTRATION'S BOTTOMUP REVIEW OF MILITARY READINESS THE PLAN PROMISED TO DO MORE WITH LESS BUT THE BOTTOMUP REVIEW WAS SIGNIFICANT FOR MORE THAN JUST ITS FORCECUTTING FOR THE FIRST TIME THE US CHANGED ITS STANDARD FOR MEETING THREATS ABROAD BEFORE ASPIN THE US PREPARED TO MEET TWO SIMULTANEOUS MAJOR REGIONAL CONFLICTS MRCS WITH THE OBJECTIVE OF WINWIN OR WINNING BOTH UNDER THE ASPIN PLAN THE US WOULD MEET TWO NEAR SIMULTANEOUS WHATEVER THAT MEANS MRCS WITH THE OBJECTIVE OF WINHOLDWIN IN OTHER WORDS PLAN TO BEAT SADDAM HUSSEIN WHILE HOPING TO STIFFARM THE NORTH KOREANS IN HIS TESTIMONY GEN HOAR TOLD OF A RECENT MILITARY EXERCISE WITH EGYPT THAT TOOK PLACE AT THE SAME TIME THE US WAS REINFORCING TROOPS IN SOMALIA IT WAS ALL WE COULD DO TO RUN ONE MODERATE REINFORCEMENT AND ONE MEDIUMSIZED EXERCISE AT THE SAME TIME HE SAID THIS WAS NICKEL AND DIME COMPARED WITH THE TWO MRCS THE ASPIN PLAN OUTLINES THE KEYS TO IMPROVING AIRLIFT AND SEALIFT ARE THE C17 CARGO PLANE AND A NEW FLEET OF FAST SEALIFT SHIPS THE C17 WHILE ORIGINALLY SLOWED BY STRUCTURAL DIFFICULTIES AND COST OVERRUNS OF ABOUT 1 BILLION IS BACK ON TRACK AND MANY AGREE THE BEST OPTION TO REPLACE OUR AGING FLEET OF C5S AND C141S THE C17 IS ESPECIALLY IMPORTANT NOW BECAUSE ITS IMPROVED LIFT FOR SHORT TAKEOFFS AND STURDIER LANDING GEAR OPENS UP 10000 MORE AIRFIELDS AROUND THE WORLD INCLUDING THOSE IN BOSNIA BUT THE CLINTON ADMINISTRATION IS DECRYING THE C17'S UNIT COST ABOUT 498 MILLION AT THE SAME TIME IT'S CUTTING ORDERS FOR THE CARGO PLANE IT WAS ORIGINALLY ESTIMATED THAT MCDONNELL DOUGLAS WOULD BUILD ABOUT 240 C17S BUT THAT NUMBER HAS DWINDLED TO 40 MOST AGREE THAT WE NEED AT LEAST 120 BUT MARKET ANALYSTS SAY EVEN 80 PLANES WOULD DECREASE UNIT COST SIGNIFICANTLY AND THERE'S LITTLE DISPUTING THAT WE NEED THE PLANES IN FAIRNESS THE CLINTON ADMINISTRATION HAS BEEN CONSISTENT IN MAINTAINING FUNDING FOR THE FAST SEALIFT SHIP PROGRAM THE ASPIN PLAN INCREASES THE NUMBER TO 24 FROM 19 BUT THE ADMINISTRATION HAS BECOME OBSESSED WITH MAINTAINING WHAT IT CALLS THE DEFENSE INDUSTRIAL BASE USING THIS TO JUSTIFY BUILDING ANOTHER AIRCRAFT CARRIER AND THE SEAWOLF SUBMARINE WHILE WE COULD BE CONVINCED THAT ANOTHER CARRIER COULD BE USEFUL THE ASPIN PLAN DOESN'T PROVIDE THE PLANES TO MAN IT A POINT FLAGGED BY A DEFENSE ANALYST DURING THE BOTTOMUP REVIEW PRESS CONFERENCE SECRETARY ASPIN SAID HE COULD PERHAPS PICK UP A RESERVE AIR WING OR AN ACTIVE AIR WING THAT HAPPENS TO BE IN THE CONTINENTAL UNITED STATES AT THE TIME WORKING UP FOR ANOTHER CARRIER DEPLOYMENT IMPOSSIBLE SAYS SENATOR JOHN MCCAIN A FORMER NAVY FLIER HIMSELF WHEN A CARRIER AIR WING IS AT A SHORE INSTALLATION FOR ROUTINE MAINTENANCE AFTER A CARRIER DEPLOYMENT SOME OF THE PLANES ARE IN A MILLION PIECES AS FOR THE SEAWOLF SENATOR MCCAIN NOTES THAT THAT PROGRAM IS SIMPLY FULFILLING A CLINTON CAMPAIGN PROMISE HE ARGUES THAT THE SEAWOLF SHOULD BE CUT IN FAVOR OF IMPROVED SEALIFT WE AGREE THE NATIONAL DEFENSE SECTION OF THE FISCAL '95 BUDGET STARTS OUT WITH A QUOTE FROM PRESIDENT CLINTON OUR FORCES WILL REMAIN THE BEST EQUIPPED BEST TRAINED AND BEST PREPARED FIGHTING FORCE ON THE FACE OF THE EARTH THIS WON'T HAPPEN IF THE ADMINISTRATION DOESN'T CHANGE ITS OVERSTRETCHED PLANS FOR MOVING SOLDIERS BY AIR AND SEA 9403110100 940311 FOREIGN EXCHANGE WHITEWATER RUMORS SEND THE DOLLAR TO A FOURMONTH LOW AGAINST THE MARK BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS BEATEN DOWN TO A FOURMONTH LOW AGAINST THE MARK YESTERDAY ON RUMORS CONCERNING THE WHITEWATER INVESTIGATION PANIC SELLING SENT THE DOLLAR ON A DOWNWARD SPIRAL BENEATH A KEY PSYCHOLOGICAL SUPPORT LEVEL OF 17000 MARKS TO AN INTRADAY LOW OF 16755 MARKS THAT LEVEL WAS PREVIOUSLY SURPASSED OCT 29 WHEN THE DOLLAR HIT 16696 MARKS LATE IN NEW YORK YESTERDAY THE DOLLAR WAS QUOTED AT 16825 MARKS WELL DOWN FROM 17025 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10525 YEN DOWN FROM 10580 YEN STERLING WAS TRADING AT 15040 UP FROM 14944 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10510 YEN AND AT 16843 MARKS REPORTS OF GRAND JURY APPEARANCES BY WHITE HOUSE OFFICIALS MIXED WITH BREATHLESS RUMORMONGERING SURROUNDING THE CASE SPARKED A DOLLAR LIQUIDATION SAID MARK SCHWARTZ VICE PRESIDENT AT LEHMAN BROTHERS INC THE PRESSURE ON THE DOLLAR WAS INTENSIFIED BY ANOTHER TUMBLE ON THE US BOND MARKET WHERE THE YIELD ON THE BELLWETHER 30YEAR BOND JUMPED TO A RECENT HIGH OF 695 TRADERS SAID THERE WAS A HUGE SELLOFF OF DOLLARS AND DOLLAR ASSETS MR SCHWARTZ SAID IT'S LIKE A LIQUIDATION AND WHEN PEOPLE ARE LIQUIDATING AND EVERYONE WANTS TO SELL IT'S HARD TO KNOW WHERE THE BOTTOM IS MARGARET WILLIAMS CHIEF OF STAFF FOR HILLARY CLINTON YESTERDAY WAS THE FIRST OF SIX SUBPOENAED WHITE HOUSE OFFICIALS TO APPEAR BEFORE A FEDERAL GRAND JURY TO TESTIFY ON THE WHITEWATER AFFAIR THE GRAND JURY IS LOOKING INTO ALLEGATIONS SURROUNDING BILL AND HILLARY RODHAM CLINTON'S INVOLVEMENT IN THE SOURED WHITEWATER DEVELOPMENT CO AN ARKANSAS REALESTATE VENTURE TIED TO A COLLAPSED SAVINGSANDLOAN ASSOCIATION QUESTIONS SURROUNDING THE REALESTATE DEAL HAVE GONE BEYOND THE CLINTONS' ORIGINAL INVESTMENT WHICH OCCURRED LONG BEFORE MR CLINTON'S NOVEMBER 1992 ELECTION VICTORY AND NOW CENTER ON SPECULATION ABOUT A WHITE HOUSE COVERUP THE DOLLAR'S PLUNGE BEGAN EARLY IN ASIAN TRADING PRODDED IN PART BY A REPORT FROM THE WASHINGTONBASED CONSULTANCY JOHNSON SMICK INTERNATIONAL INC THAT DESCRIBED WITHOUT SUBSTANTIATION NEW EVIDENCE ON MR CLINTON'S TIES TO THE FAILED MADISON GUARANTY SAVINGS & LOAN AND RAISED NEW QUESTIONS ABOUT THE CIRCUMSTANCES OF THE SUICIDE OF FORMER WHITE HOUSE ATTORNEY VINCENT FOSTER THE WHITE HOUSE DISMISSED THE REPORT NEVERTHELESS THE MARKET REMAINED RUMORDRIVEN THERE IS ENORMOUS NERVOUSNESS ON THE WHITEWATER SITUATION AND RUMORS ABOUT HILLARY CLINTON AND ABOUT THE FOSTER SUICIDE HAVE BEEN BUILDING UP ALL DAY LEHMAN'S MR SCHWARTZ SAID THEN TOO THERE WERE THE TECHNICAL ASPECTS OF THE DROP AS MAJOR SUPPORT LEVELS GAVE WAY WE HIT A LOT OF STOP LOSSES AND PEOPLE BEGAN RUNNING FOR COVER SAID PETER IVERSEN VICE PRESIDENT AT SHAWMUT BANK OF BOSTON THE DOLLAR MADE A MILD RECOVERY LATE IN NEW YORK TRADING AS BARGAINHUNTERS SWEPT INTO THE MARKET TRADERS SAID IT SHOULD BE A ROSY PICTURE FOR THE DOLLAR WITH THE US ECONOMY PERFORMING WELL BUT IT'S A STICK IN THE WHEEL WHEN THE ADMINISTRATION COMES UNDER FIRE ON MORAL AND ETHICAL ISSUES MR IVERSEN ADDED 9403110099 940311 ECONOMY UNEMPLOYMENT CLAIMS FELL IN LATEST MONTH WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS AVERAGED 348250 IN THE FOUR WEEKS ENDED MARCH 5 DOWN FROM AN AVERAGE OF 352500 IN THE FOUR WEEKS ENDED FEB 26 THE LABOR DEPARTMENT SAID IN THE MARCH 5 WEEK ALONE CLAIMS TOTALED 346000 UP 32000 FROM A REVISED 314000 IN THE PREVIOUS WEEK WHICH INCLUDED WASHINGTON'S BIRTHDAY CLAIMS ARE USUALLY LOW IN A HOLIDAY WEEK WHEN THERE ARE FEWER DAYS TO SEEK BENEFITS AND RISE THE FOLLOWING WEEK THE FOURWEEK MOVING AVERAGE IS CONSIDERED A BETTER INDICATOR OF LABOR CONDITIONS ALL NUMBERS ARE SEASONALLY ADJUSTED 9403110098 940301 TRIUMPH OF TEXTBOOK TRENDINESS BY GILBERT T SEWALL A FEW AMERICAN TEXTBOOKS BECOME LEGENDS KNOWN FAMILIARLY BY THEIR AUTHORS' NAMES AS EDITIONS AND TITLES CHANGE OVER TIME TODD AND CURTI WHICH FIRST APPEARED IN 1950 IS ONE SUCH BOOK UNDER THE TITLE TRIUMPH OF THE AMERICAN NATION IN THE 1980S IT BECAME THE LARGESTSELLING HIGH SCHOOL AMERICAN HISTORY BOOK IN THE COUNTRY BUT LATELY TODD AND CURTI HAS BEEN A TROUBLED TITLE IN 1991 GEORGIA REJECTED THE BOOK CRITICIZING ITS OUTDATED APPROACH INATTENTION TO MULTICULTURALISM INADEQUATE CRITICAL THINKING QUESTIONS AND CHOPPY NARRATIVE FLOW HOLT RINEHART & WINSTON MADE THE BOOK OVER FROM SCRATCH GIVING IT A NEW NAME TODD AND CURTI'S THE AMERICAN NATION AND PUBLISHING IT LAST MONTH WITH A 1995 COPYRIGHT THE NEW TODD AND CURTI EXEMPLIFIES DISTURBING TRENDS IN SOCIAL STUDIES PUBLISHING TODAY IT IS A BIG STEP BACKWARD A CASE OF DUMBING DOWN AND REVISIONIST FOLLY IN SEARCH OF A LARGER AUDIENCE NO TRIUMPH REMAINS IN THE TITLE AND NO TRIUMPHALISM EXISTS IN THE TEXT EXCEPT FOR THE MANY FORCES IN CONTEMPORARY CULTURE THAT SEEK TO TRANSFORM THE CURRICULUM ALONG THE FAULT LINES OF MULTICULTURALISM THE NEW 1090PAGE BOOK HAS A STREAMLINED FOURCOLOR LOOK A PICTORIAL JAZZY BROKEN FORMAT HAS REPLACED THE STOLID DESIGN OF THE PREVIOUS VOLUME THE CORE TEXT HAS BEEN CUT IN HALF REPLACED BY ILLUSTRATIONS AND WHITE SPACE THAT'S BAD ENOUGH BUT TODD AND CURTI'S NEW CONTENT IS MORE DISTURBING THAN ITS FORMAT THE FINAL CHAPTERS ARE A MEDLEY OF RACIAL AND GENDER THEMES RADICAL GESTURES AND TRENDY GLOBAL CONCERNS LIBERAL CRUSADES AND ACTIVISM RECEIVE UNCRITICAL ACCOLADES TWO PHOTOGRAPHS OF PROTESTERS IN WHEELCHAIRS AND A THIRD CAPTIONED A WOMAN WITH VISUAL IMPAIRMENT DEMONSTRATING FOR CIVIL RIGHTS REFLECT THE FORCE OF PRESSURE GROUPS ON THE SHAPE OF SCHOOLROOM HISTORY SO DO PROFILES OF NATIVE AMERICANS RUSSELL MEANS AND WILMA MANKILLER THE 1974 BILINGUAL EDUCATION ACT RECEIVES PROMINENT ATTENTION AS A MULTICULTURAL INITIATIVE THE 1946 EMPLOYMENT ACT SHRINKS TO TWO SENTENCES THE SAGA OF THE POSTWAR COMPUTER INDUSTRY VANISHES THE COMPUTER IS PRESENTED INSTEAD AS A MACHINE THAT HELPS MAKE THE WORKPLACE SAFE FOR PEOPLE WITH DISABILITIES RECENT AMERICAN LETTERS ARE REPRESENTED BY GISH JEN SANDRA CISNEROS AND JESSICA HAGEDORN A MAP ENTITLED A MULTICULTURAL COUNTRY COLOR CODES THE US INTO 22 ETHNIC AND HIGH DIVERSITY AREAS THE RESULTS ARE CONFUSING OR PLAIN WRONG STUDENTS WILL NOW LEARN THAT NORTHWESTERN NEVADA AND CENTRAL MONTANA ARE HIGH DIVERSITY AREAS JUST LIKE LOS ANGELES AND MIAMI AMERICAN BLACKS HAVE BEEN RELABELED AFRICAN AMERICANS AN UNSETTLED DESIGNATION THAT LIKE OTHERS HAS BECOME NEARLY UNIVERSAL IN SOCIAL STUDIES TEXTBOOKS WITH THE 1960S COUNTERCULTURE RECENT HISTORY FADES INTO ROMANCE JIMI HENDRIX MAKES THE SCENE AT THE 1970 ISLE OF WIGHT MUSIC FESTIVAL THE TEXT TASTEFULLY OMITS HIS DRUG OVERDOSE LATER THAT YEAR ACCORDING TO TODD AND CURTI WOODSTOCK WAS MORE THAN JUST A ROCK CONCERT IT WAS A CELEBRATION OF THE ERA THEN DARKLY THE CHAPTER CONCLUDES SOME FOUR MONTHS LATER AT A FREE CONCERT HELD AT ALTAMONT RACEWAY NEAR SAN FRANCISCO A SECURITY TEAM BEAT A YOUNG AFRICAN AMERICAN TO DEATH IN FULL VIEW OF THE STAGE THE IDEALISTIC SPIRIT OF THE YOUTH MOVEMENT SEEMED TO DIE WITH HIM NOT TRUE AND WASN'T THE SECURITY TEAM A GROUP OF HELL'S ANGELS WE MEET MURPHY BROWN HAVING A BABY AND LEARN THAT MANY AMERICANS WERE ABANDONING THE IDEA THAT MARRIAGE WAS NECESSARILY A LIFELONG COMMITMENT WE DEAL WITH SEXUAL HARASSMENT AND HOMELESSNESS WHICH INCREASED DURING THE 1980S PARTLY AS A RESULT OF PRESIDENT REAGAN'S ECONOMIC POLICIES AN ESTIMATED THREE MILLION AMERICANS ARE HOMELESS ACCORDING TO THE BOOK FOUR TO SIX TIMES THE NUMBER IN REPUTABLE SURVEYS TODD AND CURTI STATES RONALD REAGAN APPEALED TO A WIDE RANGE OF VOTERS DISENCHANTED WITH LIBERAL POLITICS IT NEVER EXPLAINS THE APPEAL OR THE DISENCHANTMENT TO GAIN SUPPORT FOR THEIR CAUSES THE NEW RIGHT ESTABLISHED RESEARCH CENTERS SUCH AS THE HERITAGE FOUNDATION AND LAUNCHED DIRECT MAIL CAMPAIGNS TO ELECT MR REAGAN SAYS THE BOOK WHICH CONFLATES JERRY FALWELL'S MORAL MAJORITY AND VOTER INSURGENCY IN THE 1980S A CHAPTER ON THE ENVIRONMENT SOUNDS A DIFFERENT ALARM ONE 1992 REPORT CLAIMED THAT AT LEAST 140 SPECIES WERE VANISHING EACH DAY ACTIVISTS ARE CAMPAIGNING TO SLOW THIS PROCESS AND SAVE AT LEAST SOME SPECIES FROM EXTINCTION SUCH DISTORTIONS ARE ALL THE MORE DISTRESSING AT A TIME WHEN THE NUMBER OF MASSMARKET EDUCATIONAL PUBLISHERS CONTINUES TO SHRINK THE RECENT DEPARTURE OF MACMILLAN FROM SCHOOL PUBLISHING AND THE ABSORPTION OF MCDOUGAL LITTELL BY HOUGHTON MIFFLIN ARE THE LATEST CHAPTERS IN THE DEPRESSING TALE OF INGESTION CONSOLIDATION AND LOST AUTONOMY IN THE FIELD HISTORY AS A BASIC AND REQUIRED SUBJECT INCREASINGLY COMPETES WITH SOCIAL STUDIES ELECTIVES THAT ARE CONCERNED MAINLY WITH BUILDING STUDENTS' SELFESTEEM EDUCATIONAL PUBLISHERS ARE TEMPTED TO RETREAT ENTIRELY FROM HISTORY A TROUBLED AND COSTLY AREA OF THE CURRICULUM WHERE LITTLE AGREEMENT ON CONTENT EXISTS AND WHERE MARKETING HEADACHES ABOUND THE NEW TODD AND CURTI CONFIRMS THE ONGOING DECLINE OF A NARRATIVE CORE IN HISTORY TEXTS AND PROFOUND CHANGES IN HIGH SCHOOL HISTORY COURSES IT INDICATES THE CONTINUING SUCCESS OF PRESSURE GROUPS THAT WANT TO RECONSTRUCT THE NATION'S OFFICIAL RECORD OF ITS PAST FOR YOUNG PEOPLE AS IT HAPPENS I SPOKE A WHILE BACK TO THE COAUTHOR OF THE ORIGINAL TEXT MERLE CURTI NOW A 96YEAROLD RETIRED PROFESSOR AT THE UNIVERSITY OF WISCONSIN AND A PULITZER PRIZEWINNING HISTORIAN MR CURTI SAID HE LOST CONTROL OF THE BOOK YEARS AGO THE NEW BOOK IS WRITTEN UNDER THE SIGNATURE OF PAUL BOYER ALSO A HISTORIAN AT THE UNIVERSITY OF WISCONSIN AND A RESPECTED TEXTBOOK AUTHOR I KNOW SEVERAL OF THE HISTORIANS LISTED AS CONTENT REVIEWERS IN THE FRONT OF THE TEXT AND HAVE FAVORABLY REVIEWED THEIR OWN WORKS OF HISTORY I CANNOT BELIEVE THEY HAD ANYTHING MORE THAN THE NARROWEST OF ENCOUNTERS WITH THE FINAL PRODUCT SEE RELATED LETTER LETTERS TO THE EDITOR AN ESTEEMED TEXTBOOK UNFAIRLY CARICATURED WSJ MARCH 11 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SOCIAL STUDIES PROGRAM IS BIG STEP BACKWARD WSJ MARCH 16 1994 9403010079 YY94 MM03 9403110097 940311 FANNIE MAE PLANS TO EXPAND PROGRAM FOR LOW AND MODERATE INCOME HOUSING BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FEDERAL NATIONAL MORTGAGE ASSOCIATION NEXT TUESDAY WILL ANNOUNCE A MAJOR NEW COMMITMENT TO LOW AND MODERATEINCOME HOUSING UNDER THE PLAN CALLED IMPACT 2000 THIS COMMITMENT WOULD ACCOUNT FOR MORE THAN HALF OF FANNIE MAE'S TOTAL BUSINESS BY THE YEAR 2000 THE PLAN DOESN'T ENTAIL WHOLESALE PRODUCT CHANGES BUT RATHER REFLECTS A MARKED SWITCH IN EMPHASIS TO REACH OUT TO SEGMENTS OF SOCIETY CURRENTLY UNDERSERVED BY THE MORTGAGE FINANCE COMMUNITY IT WILL FEATURE AN OUTREACH PROGRAM TO HELP ASPIRING HOMEBUYERS PARTICULARLY MINORITIES AND IMMIGRANTS THE IMMIGRANT POPULATION IS PROJECTED TO INCREASE BY NINE MILLION PERSONS BY THE END OF THE DECADE FANNIE MAE PLANS A 5 BILLION PILOT PROGRAM TO HELP NONTRADITIONAL MORTGAGE BORROWERS WITH MORE FLEXIBLE CREDIT STANDARDS IT ALSO WILL STRESS TO LENDERS AND UNDERWRITERS THE FLEXIBILITY OF UNDERWRITING STANDARDS SOME LENDERS CITE THESE STANDARDS AS THE REASON THEY DON'T DO MORE FOR LOW AND MODERATEINCOME FAMILIES THE MORTGAGEFINANCE GIANT WILL CONTINUE TO REVIEW THE UNDERWRITING GUIDELINES PLACING TOP PRIORITY ON THE ELIMINATION OF BIAS FANNIE MAE IS A SHAREHOLDEROWNED CORPORATION CHARTERED BY CONGRESS TO PROVIDE LIQUIDITY FOR HOUSING FINANCE IT BUYS MORTGAGES AND PACKAGES THEM INTO MORTGAGEBACKED SECURITIES WHICH IT SELLS IN FINANCIAL MARKETS THE COMPANY INTENDS TO SEEK OUT PEOPLE WHO MAY BE INTIMIDATED BY THE HOUSING FINANCE SYSTEM AND HELP THEM BECOME AND REMAIN HOMEOWNERS IT PLANS A 5 MILLION THREEYEAR COMMITMENT TO SUPPORT HOMEBUYERASSISTANCE COUNSELING AND WILL OPEN AT LEAST 25 NEW PARTNERSHIP OFFICES ACROSS THE NATION TO WORK WITH LOCAL OFFICIALS AND COMMUNITY GROUPS TO PROMOTE HOMEOWNERSHIP IN UNDERSERVED AREAS FANNIE MAE TOLD THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LAST WEEK THAT IT FELL SHORT OF MEETING AN INTERIM GOAL ESTABLISHED BY CONGRESS FOR PROVIDING ASSISTANCE TO CENTRAL CITY RESIDENTS BUT MET A GOAL FOR LOW AND MODERATEINCOME HOUSING A 1992 LAW SUBJECTING FANNIE MAE AND THE FEDERAL HOME LOAN MORTGAGE CORP TO A NEW SYSTEM OF FINANCIAL REGULATION FOR SAFETY AND SOUNDNESS ALSO DIRECTED BOTH COMPANIES WHICH ARE QUITE PROFITABLE TO FOCUS MORE ON AFFORDABLE HOUSING FREDDIE MAC ALSO FAILED TO MEET ITS CENTRAL CITIES GOAL BUT MET ITS LOW AND MODERATEINCOME GOAL 9403110096 940311 WHO'S NEWS CORTECH INC CORTECH INC DENVER DAVID K CROSSEN 45 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS DEVELOPER OF ANTIINFLAMMATORY DRUGS TO PURSUE OTHER INTERESTS THE COMPANY SAID IN A NEWS RELEASE CORTECH'S CHAIRMAN BERT FINGERHUT THANKED MR CROSSEN AND PRAISED HIS SIXYEAR TENURE THE COMPANY NAMED PAUL J JERDE 46 VICE CHAIRMAN AND ACTING CEO MR JERDE HAS BEEN A CORTECH DIRECTOR SINCE 1985 9403110095 940311 NORANDA PARTNER PLANNING TO SELL FALCONBRIDGE STAKE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO NORANDA INC AND TRELLEBORG AB SAID THEY PLAN TO SELL UP TO 25 OF JOINTLY HELD FALCONBRIDGE LTD TO THE PUBLIC IN AN OFFERING THAT CANADIAN INVESTMENT INDUSTRY SOURCES SAID COULD BE VALUED AT ABOUT 14 BILLION CANADIAN DOLLARS US103 BILLION NORANDA A MINING FOREST PRODUCTS AND ENERGY CONCERN PLANS TO MAINTAIN ITS 50 OWNERSHIP LEVEL BY SUBSCRIBING FOR ABOUT HALF OF THE SHARES LEAVING THE REMAINING C700 MILLION AVAILABLE TO INSTITUTIONAL AND RETAIL INVESTORS ALAN THOMAS SENIOR VICE PRESIDENT OF FINANCE AT NORANDA SAID THE ISSUE IS BEING CONTEMPLATED AT THE REQUEST OF TRELLEBORG A SWEDISH INDUSTRIAL GROUP WHICH HE SAID SEEKS TO DECREASE ITS EXPOSURE TO FALCONBRIDGE HE SAID BOTH SHAREHOLDERS BELIEVE THAT MAKING FALCONBRIDGE A PUBLICLY TRADED COMPANY WILL ENHANCE ITS VALUE TRELLEBORG IS LOOKING AT HAVING A SMALLER PIECE OF A BETTER ASSET WHILE WE'D LIKE A BIGGER PIECE OF A BETTER ASSET MR THOMAS SAID PROCEEDS FROM THE ISSUE WILL BE USED TO REDUCE FALCONBRIDGE'S DEBT WHICH NOW TOTALS ABOUT C18 BILLION AND WHICH IS GUARANTEED BY ITS TWO SHAREHOLDERS NEWS OF THE ISSUE IS BEING MET WITH ENTHUSIASM IN RECENT YEARS INVESTORS HAVE PLAYED METALS PRICES BY BUYING INCO LTD A TORONTO NICKEL PRODUCER NORMAND LAMARCHE MANAGER OF THE ALTAMIRA RESOURCE FUND IN TORONTO SEES FALCONBRIDGE AS AN ATTRACTIVE ALTERNATIVE THEY HAVE LOWER AVERAGE COSTS THAN INCO HE SAID BUT OTHERS POINT TO THE UNCERTAIN OUTLOOK FOR PRICES OF FALCONBRIDGE'S KEY COMMODITIES NICKEL AND ZINC NICKEL PRICES WHICH BOTTOMED AT US186 A POUND LAST YEAR HAVE REBOUNDED TO A HIGH OF 280 A POUND SAID VAHID FATHI A METALS ANALYST AT KEMPER SECURITIES INC THERE'S PERHAPS BEEN SOME PREMATURE ENTHUSIASM REGARDING THESE PRICES SAID MR FATHI WHO EXPECTS A RESUMPTION IN RUSSIAN EXPORTS THIS SPRING TO LOWER PRICES FALCONBRIDGE POSTED A LOSS IN 1993 DUE TO LOW COMMODITY PRICES AND CUTBACKS THAT REDUCED PRODUCTION BY ABOUT 15 SAID LARSERIC JOHANSSON CHIEF FINANCIAL OFFICER OF THE TORONTO COMPANY BUT HE SAID THAT SO FAR IN 1994 FALCONBRIDGE HAS BEEN PROFITABLE MORE UNCERTAINTY COULD CENTER ON THE FUTURE OF TRELLEBORG'S REMAINING HOLDINGS IN FALCONBRIDGE ANALYSTS SAID THEY BELIEVE THAT TRELLEBORG WHICH HAS RECENTLY SOLD STAKES IN SEVERAL CONCERNS AS PART OF AN EFFORT TO CUT DEBT AND FOCUS ON WHOLLY OWNED CORE OPERATIONS COULD SELL FALCONBRIDGE STOCK INTO THE MARKET TRELLEBORG AND NORANDA ACQUIRED FALCONBRIDGE IN 1989 PAYING C213 BILLION FOR THE 73 OF THE SHARES THE TWO FIRMS DIDN'T ALREADY OWN TRELLEBORG OFFICIALS COULDN'T BE REACHED FOR COMMENT 9403110094 940311 WHO'S NEWS WILLSON LEAVES KIDDER TO FORM BANKING FIRM NEW YORK ALEXA WILLSON LEFT KIDDER PEABODY & CO TO FORM HER OWN INVESTMENT BANKING FIRM SPECIALIZING IN PLACING PRIVATE EQUITY AND PROVIDING MERGER AND ACQUISITION ADVISORY SERVICES MS WILLSON SAID HER FIRM MILLE CAPITAL CORP HAS ALREADY SECURED ITS FIRST ADVISORY ASSIGNMENT WITH A MULTIMEDIA COMPANY THAT SHE DECLINED TO IDENTIFY THE 36YEAROLD MS WILLSON MOST RECENTLY WORKED AS SENIOR VICE PRESIDENT AT KIDDER PEABODY A UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN MS WILLSON WHO WILL SERVE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HER FIRM SAID SHE SEES THE BEST INVESTMENT BANKING PROSPECTS IN SPECIALTY RETAIL HEALTH CARE AND MULTIMEDIA 9403110093 940311 MARKETING & MEDIA LEAR'S MAGAZINE TO PUBLISH ITS FINAL ISSUE IN APRIL NEW YORK AS EXPECTED FRANCES LEAR PULLED THE PLUG ON LEAR'S MAGAZINE THE PUBLICATION FOR WOMEN OVER 40 WHICH SHE STARTED SIX YEARS AGO MS LEAR SAID THE MAGAZINE'S APRIL ISSUE WILL BE ITS LAST THERE HAD BEEN RUMORS FOR MONTHS THAT THE MAGAZINE WAS IN TROUBLE BUT MS LEAR DENIED UNTIL THE END THAT SHE PLANNED TO CLOSE IT INSISTING BOTH TO STAFFERS AND OUTSIDERS THAT SHE WOULD CONVERT LEAR'S INTO A WOMEN'S FINANCIAL MAGAZINE INSIDERS SAY THE MAGAZINE NEVER MADE MONEY AND COST MS LEAR MORE THAN 25 MILLION MONEY THAT CAME FROM A LARGE DIVORCE SETTLEMENT MS LEAR DECLINED TO COMMENT ABOUT HOW MUCH MONEY SHE LOST OR WHY SHE CLOSED THE MAGAZINE IN A NEWS RELEASE SHE SAID SHE BELIEVES THAT THE FUTURE IS IN DIRECT MARKETING PRODUCTS TO A MASS AUDIENCE OF WOMEN THROUGH ADVANCED TELECOMMUNICATIONS TO THAT END SHE HAS STARTED LEAR TELEVISION WHOSE FIRST PRODUCT WILL BE A VIDEOTAPE OF FINANCIAL ADVICE FOR WOMEN DUE OUT THIS SUMMER THE STAFF OF THE MAGAZINE TOOK THE NEWS WITH CONSIDERABLE BITTERNESS ESPECIALLY AFTER LEARNING THAT THEY WON'T RECEIVE SEVERANCE PAY PEOPLE FELT STUNNED BITTER AND BRUTALIZED SAID LARKIN WARREN A SENIOR EDITOR AT LEAR'S FOR TWO YEARS FRANCES DID A NORMA DESMOND NUMBER TELLING US HOW GRATEFUL SHE WAS THEN TWO GUYS IN SUITS SWEPT IN AND SAID YOU PEOPLE GET NOTHING JUST GET OUT' STAFFERS HAD TO LEAVE THE OFFICE BY 4 PM AND GET PERMISSION TO TAKE WHATEVER THEY TOOK FROM THEIR DESKS 9403110092 940311 FLEET FINANCIAL TO REDUCE STAFF BY 15 IN NEXT YEAR PROVIDENCE RI FLEET FINANCIAL GROUP INC AS EXPECTED ANNOUNCED A COSTCUTTING INITIATIVE IN WHICH IT PLANS TO SHED 4250 JOBS OR ABOUT 15 OF ITS WORK FORCE WITHIN THE NEXT YEAR THE BANKHOLDING COMPANY SAID IT WILL LAY OFF 3000 EMPLOYEES AND ELIMINATE 1250 WORKERS THROUGH ATTRITION ADDITIONALLY 1250 POSITIONS LEFT VACANT DURING A HIRING FREEZE WILL NOT BE FILLED THE CUTS IN FLEET'S WORK FORCE OF 27500 PLUS RESTRUCTURING OF OPERATIONS ARE AIMED AT REDUCING OPERATING EXPENSES BY 300 MILLION ANNUALLY FLEET ALSO SAYS IT IS TAKING STEPS INCLUDING TIGHTER RULES FOR FEE WAIVERS THAT IT EXPECTS WILL GENERATE MORE THAN 50 MILLION IN ADDITIONAL INCOME THE JOB CUTS WILL AFFECT ONLY FLEET'S BANKING BUSINESSES AND 20600 BANK EMPLOYEES IN FIVE NEW ENGLAND STATES AND NEW YORK THE RESTRUCTURING WILL YIELD AN ADDITIONAL 25 MILLION CHARGE IN THE 1994 FIRST QUARTER IN THE 1993 THIRD QUARTER FLEET TOOK A 125 MILLION RESTRUCTURING CHARGE TO COVER SEVERANCE PAYMENTS AND OFFICECLOSINGS LINKED TO THE INITIATIVE FLEET WANTS TO IMPROVE PROFITABILITY AND REDUCE ITS CURRENT EFFICIENCY RATIO OR COST PER DOLLAR OF REVENUE TO ABOUT 55 BY MID1995 FROM THE CURRENT 67 FLEET WITH 48 BILLION IN ASSETS REPORTED NET INCOME FOR 1993 OF 488 MILLION OR 301 A SHARE 9403110091 940311 JUSTICE DEPARTMENT PROBES PRICE FIXING IN CEMENT INDUSTRY BY TIMOTHY AEPPEL AND ARTHUR BUCKLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE US JUSTICE DEPARTMENT IS PROBING POSSIBLE PRICE FIXING AND MARKET ALLOCATION BY CEMENT PRODUCERS SEVERAL MAJOR CEMENT MAKERS SAID THEY HAVE RECENTLY RECEIVED CIVIL INVESTIGATIVE DEMANDS A LIST OF QUESTIONS ABOUT CUSTOMERS AND PRICING FROM THE ATLANTA OFFICE OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION BRUCE MCINTOSH SPOKESMAN FOR THE PORTLAND CEMENT ASSOCIATION A TRADE GROUP REPRESENTING 42 US CEMENT MAKERS OR 83 OF US CAPACITY SAID HE ASSUMES ALL ITS MEMBERS RECEIVED SIMILAR QUESTIONNAIRES HE ALSO SAID THE ASSOCIATION ITSELF RECEIVED SUCH A LETTER WE'RE GOING TO COOPERATE WITH IT FULLY SAID MR MCINTOSH WE'RE CONFIDENT PCA HASN'T VIOLATED ANY ANTITRUST LAWS HE ADDED THAT HIS ORGANIZATION HAS NO IDEA WHAT PROMPTED THE INVESTIGATION A JUSTICE DEPARTMENT SPOKESWOMAN SAID THE ANTITRUST DIVISION IS LOOKING AT PRICING PRACTICES IN THE CEMENT INDUSTRY NATIONWIDE SHE REFUSED TO ELABORATE THE US CEMENT INDUSTRY WHICH PRODUCES 85 MILLION TONS A YEAR IS IN AN UPSWING AFTER SEVERAL RECESSIONBATTERED YEARS AIDED BY REVIVING BUILDING ACTIVITY IN MANY PARTS OF THE COUNTRY A SERIES OF NATURAL DISASTERS INCLUDING THE MISSISSIPPI FLOODS AND THE LOS ANGELES EARTHQUAKE ARE CONTRIBUTING TO THE UPSWING DAVID LEE SMITH AN ANALYST AT SOUTHCOAST CAPITAL CORP IN AUSTIN TEXAS SAID HE BELIEVES IT WOULD BE EXTREMELY DIFFICULT FOR CEMENT PRODUCERS TO FIX PRICES IT APPEARS TO ME TO BE A VERY COMPETITIVE INDUSTRY HE SAID MR SMITH SAID US CEMENT PRICES ARE AVERAGING ROUGHLY 55 TO 60 A TON COMPARED WITH LESS THAN 50 A TON DURING THE RECENT RECESSION STILL HE NOTED THAT IS WELL BELOW THE PRICES PAID ELSEWHERE WHICH RANGE FROM ABOUT 85 A TON IN MEXICO TO MORE THAN 100 A TON IN JAPAN IF US CEMENT PRODUCERS HAVE BEEN FIXING PRICES THEY'RE NOT VERY GOOD AT IT HE SAID MEDUSA CORP A CLEVELANDBASED CEMENT MAKER SAID IT HAD RECEIVED AN INQUIRY AND THAT IT INTENDS TO COOPERATE FULLY WITH THE INVESTIGATION IT EMPHASIZED THAT IT HAS NOT VIOLATED ANY PART OF THE US ANTITRUST LAWS LAFARGE CORP THE US'S SECONDLARGEST CEMENT PRODUCER AND MAJORITY OWNED BY FRANCE'S LAFARGE COPPEE SA ALSO RECEIVED AN INQUIRY TED PILE A COMPANY SPOKESMAN SAID THAT LAFARGE HAS AN INTERNAL POLICY FORBIDDING EMPLOYEES FROM PARTICIPATING IN ANY FORM OF PRICE FIXING OR ALLOCATION OF TERRITORIES OR CUSTOMERS SOUTHDOWN INC THE NATION'S THIRDLARGEST CEMENT PRODUCER SAID IT INTENDS TO FULLY COOPERATE WITH THE INQUIRY AND SAID IT HASN'T VIOLATED ANY FEDERAL ANTITRUST LAWS 9403110090 940311 AMERICAN AIR GETS SUBSIDY FOR SERVICE TO TEXAS CITY AMARILLO TEXAS OFFICIALS HAVE PERSUADED AMERICAN AIRLINES TO CONTINUE JET SERVICE TO THE PANHANDLE CITY THE COST TO AMARILLO TAXPAYERS AS MUCH AS 1 MILLION FOR THIS YEAR WHILE COMPANIES IN MANY CITIES RALLY SUPPORT FOR A PARTICULAR AIRLINE IT IS UNUSUAL FOR A GOVERNMENT ENTITY TO DIRECTLY SUBSIDIZE A CARRIER IN THIS CASE AMERICAN HAD PLANNED TO ELIMINATE ITS THREE JET DEPARTURES FROM AMARILLO TO DALLASFORT WORTH ON JUNE 16 THE MOVE WAS PART OF THE AMR CORP UNIT'S EFFORTS TO SAVE COSTS BY PARING SERVICE FROM SMALL CITIES BUT AMARILLO'S ECONOMIC DEVELOPMENT CORP FUNDED BY A LOCAL SALES TAX OFFERED AMERICAN A MINIMUM REVENUE GUARANTEE ON ROUNDTRIP JET SERVICE FLIGHTS AMERICAN ALSO HAS FOUR COMMUTER FLIGHTS A DAY FROM AMARILLO UNDER TERMS OF THE AGREEMENT THE ECONOMIC DEVELOPMENT CORP WILL COVER ANY SHORTFALL IN REVENUE OF AS MUCH AS 1 MILLION FOR THE LAST SIX MONTHS OF 1994 IN RETURN AMERICAN WILL REPLACE ITS 97SEAT F100 JETS WITH LARGER 142SEAT MD80S IN ADDITION THE ECONOMIC DEVELOPMENT CORP WHOSE BOARD IS APPOINTED BY THE CITY COMMISSION WILL PARTICIPATE IN DECIDING FARES ON AMERICAN FLIGHTS IN AND OUT OF AMARILLO AND WILL ALSO BE INVOLVED IN SCHEDULING DECISIONS SAID JOHN WARD AMARILLO'S CITY MANAGER THE AGREEMENT WHICH IS SUBJECT TO APPROVAL WILL BE UP FOR RENEWAL EVERY SIX MONTHS WE WERE MORE THAN HAPPY TO WORK WITH THEM AN AMERICAN SPOKESMAN SAID 9403110089 940311 SMALL STOCK FOCUS RUSSELL 2000 INDEX DECLINES TO 26542 ON WEAK BONDS WHITEWATER RUMORS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOND WEAKNESS AND RUMORS ABOUT THE WHITEWATER AFFAIR SWEPT SMALLCOMPANY STOCKS LOWER IN MODERATE TRADING SMALLER STOCKS STARTED THE DAY ON THE POSITIVE SIDE BUT THE BUYING BIAS SOON GAVE WAY TO MORE CONCERNS ABOUT RISING INTEREST RATES THE TREASURY'S LONG BOND FELL MORE THAN 1 5/8 POINTS FORCING ITS YIELD UP TO 698 ITS HIGHEST LEVEL SINCE MAY ALTHOUGH MARKET PLAYERS WROTE OFF MUCH OF THE GOSSIP RELATED TO THE WHITEWATER DEVELOPMENT INQUIRY EMBROILING THE WHITE HOUSE INVESTORS REPORTEDLY ARE CONCERNED THAT THE CLINTON ADMINISTRATION'S EFFECTIVENESS WILL BE HURT BY THE INVESTIGATION THE RUSSELL 2000 INDEX WHICH CHARTS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS FINISHED DOWN 102 OR 038 AT 26542 BUT ABOVE ITS SESSION LOW OF 26497 NASDAQ STOCK MARKET ISSUES ALSO BOUNCED BACK FROM THEIR WEAKEST LEVELS BUT ENDED THE DAY LOWER THE NASDAQ COMPOSITE INDEX SLID 396 OR 050 TO 78909 AFTER FALLING ABOUT SIX POINTS IN THE LATE AFTERNOON ADDITIONAL PRESSURES ON EQUITIES INCLUDED A TUMBLE IN THE US DOLLAR AGAINST THE GERMAN MARK AND THE YEN AS WELL AS RISING GOLD PRICES WHICH TEND TO FEED INFLATION FEARS ALTHOUGH SELLING HIT EVERY SECTOR INTERESTRATE SENSITIVE STOCKS WERE LET OFF THE HOOK SURPRISINGLY EASILY CONSIDERING THE UPTICK IN RATES SOME STOCKS IN THE GROUP SHOWED IMPRESSIVE GAINS CHICAGO DOCK & CANAL TRUST ADVANCED 3/4 TO 10 1/4 BSB BANCORP BINGHAMTON NY 1 TO 23 1/2 AND INTERCONTINENTAL BANK MIAMI 3/4 TO 19 LOSING NASDAQ ISSUES OUTPERFORMED GAINERS 1688 TO 1365 ON NASDAQ NATIONAL MARKET VOLUME OF 283543200 SHARES AND TOTAL TURNOVER OF 326793000 WEDNESDAY NATIONAL MARKET VOLUME WAS AT 271233800 SHARES WHILE A TOTAL OF 316898000 CHANGED HANDS MERGER MURMURS CARRIED CHEMDESIGN 1 3/4 HIGHER TO 8 1/4 THE FITCHBURG MASS CHEMICAL COMPANY AND MILES SAID THEY SIGNED AN AGREEMENT UNDER WHICH A MILES SUBSIDIARY WILL BEGIN A CASH TENDER OFFER FOR CHEMDESIGN AT 850 A SHARE LINCOLN FOODSERVICE PRODUCTS JUMPED 1 TO 13 1/2 THE FORT WAYNE IND COOKINGEQUIPMENT MAKER SAID IT HAS BEEN APPROACHED ABOUT BEING PURCHASED BUT IT ISN'T INVOLVED IN NEGOTIATIONS BUT LINCOLN SAID IT HAS RETAINED A CHARLOTTE NC INVESTMENT BANKING FIRM TO EVALUATE STRATEGIC FINANCIAL ALTERNATIVES SPECTRUM INFORMATION TECHNOLOGIES OF MANHASSET NY ADDED 1/2 TO 3 7/16 THE WIRELESS DATA COMMUNICATIONS FIRM AND FORMER CEO JOHN SCULLEY HAVE AGREED TO WITHDRAW THEIR LAWSUITS AGAINST EACH OTHER THE SUITS STEMMED FROM MR SCULLEY'S RECENT DECISION TO RESIGN MTC ELECTRONIC TECHNOLOGIES RICHMOND BRITISH COLUMBIA CLIMBED 1 TO 7 1/2 LAIDLAW HOLDINGS ANALYST STANFORD FINGERHOOD SAID THE SELLING PRESSURE THAT FORCED THE STOCK DOWN MORE THAN A POINT IN THE PAST WEEK IS OVER A PENN MERCHANT ANALYST SAID BUYER CONFIDENCE WAS BOOSTED BY THE COMPANY'S RECENT COMPLETION OF A CELLULAR MOBILE TELEPHONE SYSTEM IN CHINA INTERNATIONAL CABLECASTING TECHNOLOGIES LOS ANGELES ROSE 7/8 TO 3 7/8 FOLLOWING THE SALE OF 29 MILLION SHARES OF ITS STOCK BY SCIENTIFICATLANTA WHICH EASED 5/8 TO 31 3/8 ON THE BIG BOARD FISCAL FIRSTQUARTER EARNINGS OF 34 CENTS A SHARE THAT EXCEEDED ANALYSTS' ESTIMATES OF 30 CENTS A SHARE BOOSTED ST JOHN KNITS 1 3/8 TO 25 1/8 ON THE NEW YORK STOCK EXCHANGE THE IRVINE CALIF WOMEN'S CLOTHING COMPANY EARNED 24 CENTS A SHARE A YEAR EARLIER ST JOHN'S ALSO SAID ITS FIRSTQUARTER SAMESTORE SALES ROSE 149 MRI MANAGEMENT ASSOCIATES ROSE 7/16 TO 5 7/16 THE NEW YORKBASED PROVIDER OF MAGNETIC RESONANCEIMAGING FACILITIES SERVICES SAID IT EXPECTS TO EARN AT LEAST 70 CENTS A SHARE THIS YEAR ON BUSINESS ALREADY UNDER CONTRACT ROBEC OF HORSHAM PA PLUNGED 1 1/8 OR 429 TO 1 1/2 THE MICROCOMPUTER FIRM SAID IT SEES A SUBSTANTIAL LOSS IN THE FOURTH QUARTER AND FOR THE YEAR IT SAID A FIRSTQUARTER LOSS IS STILL LIKELY AND ANNOUNCED THAT MARK DORFMAN RESIGNED AS CHIEF OPERATING OFFICER AND A DIRECTOR BROOKTREE DROPPED 1 7/8 TO 8 1/8 AFTER ANNOUNCING IT EXPECTS A FISCAL SECONDQUARTER LOSS RESULTING FROM PLANS TO CUT ITS WORK FORCE BY ABOUT 6 AND RECORD A RESERVE IN CONNECTION WITH A RESTRUCTURING OF ITS AUTOMATIC TESTEQUIPMENT DIVISION IN THE YEAREARLIER PERIOD THE SAN DIEGO CIRCUIT DESIGNER REPORTED EARNINGS OF 18 CENTS A SHARE ON WHY INTERESTRATE SENSITIVE STOCKS LARGELY MISSED THE FALL YESTERDAY KATRINA BLECHER A VICE PRESIDENT AND SENIOR FINANCIAL SERVICES ANALYST AT GRUNTAL & CO SAID MANY STOCKS THAT USUALLY MOVE WITH INTEREST RATES HAVE REACHED THEIR BOTTOMS IN THE PAST FEW MONTHS INVESTORS ARE LOOKING AT LONGERTERM HORIZONS SHE SAID THESE INCLUDE VALUATION PRICEEARNINGS RATIOS AND GOOD FIRSTQUARTER EARNINGS EXPECTATIONS 9403110088 940311 CIA CHIEF LAUNCHES REVIEW OF SECURITY IN LIGHT OF VIOLATIONS BY ACCUSED SPY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEAD OF THE CENTRAL INTELLIGENCE AGENCY HAS LAUNCHED A COMPLETE REVIEW OF THE SPY AGENCY'S INTERNAL SECURITY AND COUNTERINTELLIGENCE PROCEDURES THAT APPEAR TO HAVE BEEN VIOLATED BY ACCUSED SPY ALDRICH AMES IN HIS FIRST DETAILED RESPONSE TO THE CHARGES AGAINST MR AMES WHO ALLEGEDLY RECEIVED 25 MILLION FROM THE RUSSIANS FOR SELLING SOME OF THE NATION'S MOST VITAL SECRETS CIA DIRECTOR JAMES WOOLSEY NAMED THREE FORMER OFFICIALS TO OVERSEE THE REVIEW THEY ARE BRENT SCOWCROFT WHITE HOUSE NATIONAL SECURITY ADVISER DURING THE BUSH ADMINISTRATION HAROLD BROWN A FORMER SECRETARY OF DEFENSE AND DOUG GOW WHO FORMERLY HEADED COUNTERINTELLIGENCE EFFORTS AT THE FEDERAL BUREAU OF INVESTIGATION WE WILL EXAMINE IT WE WILL LEARN FROM IT AND WE WILL ACT ON WHAT WE LEARN MR WOOLSEY SAID DURING A BRIEF APPEARANCE AFTER A THREEHOUR GRILLING BY MEMBERS OF THE SENATE INTELLIGENCE COMMITTEE MR WOOLSEY ALSO PROMISED A DETAILED ASSESSMENT OF THE DAMAGE ALLEGEDLY CAUSED BY MR AMES WHO FORMERLY HEADED THE AGENCY'S COUNTERINTELLIGENCE OPERATIONS AGAINST THE FORMER SOVIET UNION AND ITS FORMER SATELLITES EARLIER YESTERDAY DURING A HEARING IN FEDERAL DISTRICT COURT IN ALEXANDRIA VA FEDERAL PROSECUTORS ASSERTED THAT MR AMES'S DEMANDS FOR MONEY WERE SO LARGE THAT THE RUSSIAN SPY SYSTEM INITIALLY DIDN'T KNOW HOW TO DELIVER THEM MARK HULKOWER AN ASSISTANT US ATTORNEY RELEASED PART OF A NINEPAGE DOCUMENT FOUND IN A CLOSET IN MR AMES'S HOME IT REFERRED TO PAYMENTS THE RUSSIANS MADE INTO TWO BANK ACCOUNTS IN GENEVA THAT WERE CONTROLLED BY MR AMES THE DOCUMENT DESCRIBED AS A LIST OF TASKS ASSIGNED TO MR AMES BY HIS RUSSIAN HANDLERS SAYS THAT IN ORDER TO TRANSFER A LARGE AMOUNT OF MONEY IN SUCH A SHORT TIME WE WOULD HAVE TO USE SOME SPECIAL CANNELS SIC INCLUDING ILLEGALS OR AGENTS WITHOUT DIPLOMATIC ACCREDITATION THAT MEANS WE WOULD HAVE TO OPEN VERY SENSITIVE INFORMATION ABOUT YOUR ACCOUNT TO SOME PEOPLE APPARENTLY DESCRIBING THE METHOD THAT RUSSIANS USED TO FEED THE CREDIT SUISSE BANK ACCOUNTS THE DOCUMENT ADDS OUR MAN WOULD HAVE TO GO TO THE SAME BANK FOR A SECOND TIME THAT COULD LEAD TO PRACTICAL OPENING OF HIS LEGEND LESLIE G WISER JR THE LEAD FBI INVESTIGATOR IN THE CASE SAID LEGEND IS A TERM RUSSIAN INTELLIGENCE OFFICIALS USE FOR A COVER STORY CAUTIONING MR AMES TO REVISE HIS OWN LEGEND BY WHICH HE MADE ONE ACCOUNT APPEAR TO BE CONTROLLED BY HIS MOTHERINLAW THE DOCUMENT ADDS BY THE WAY AT THE NEXT TWO MEETINGS WITH SAM WE COULD DELIVER TO YOU 300000 JUST WHO SAM WAS IS ONE OF THE MANY MYSTERIES THAT REMAIN TO BE SOLVED IN THE TANGLED FINANCIAL SIDE OF THE CASE WHICH INVOLVES 12 BANK ACCOUNTS USED BY MR AMES AND HIS WIFE ROSARIO IN THE US SWITZERLAND ITALY AND COLOMBIA AS THE AMESES SAT TOGETHER SOMETIMES TALKING SOFTLY IN THE FRONT OF THE COURTROOM MR HULKOWER SAID IT'S CLEAR THAT DEFENDANTS HAVE SQUANDERED INCREDIBLE AMOUNTS OF MONEY THAT CAN NEVER BE REACQUIRED WHILE THE GENEVA ACCOUNTS WERE USED TO WIRE OVER A 1 MILLION INTO US ACCOUNTS INVESTIGATORS BELIEVE THAT THEY NOW CONTAIN A TOTAL OF 188000 JUDGE CLAUDE M HILTON WHO IS LIKELY TO PRESIDE OVER THE TRIAL OF THE CASE ORDERED THE AMESES YESTERDAY TO ARRANGE TO HAVE ALL THE MONEY THEY HAVE HIDDEN IN FOREIGN ACCOUNTS RETURNED TO THE US AND PLACED IN AN ESCROW ACCOUNT UNTIL A JURY DECIDES WHETHER THEY SHOULD FORFEIT IT AS THE PAYMENT FOR ESPIONAGE MR WISER THE FBI INVESTIGATOR SAID THE SWISS SO FAR HAVE FAILED TO COOPERATE IN THE CASE AND THAT BANKS IN ITALY AND COLOMBIA HAD NOT OFFERED TO HELP THE FBI RESOLVE THE QUESTION OF WHERE THE MONEY CAME FROM THE JUDGE'S ORDER REQUIRES THE AMESES TO BRING THE MONEY BACK OR TO BE HELD IN CONTEMPT OF COURT BUT IT WASN'T CLEAR HOW HE COULD FORCE COMPLIANCE BY THE COUPLE WHO ARE BEING HELD IN THE ALEXANDRIA JAIL WITHOUT BOND JUDGE HILTON'S ORDER FREEZES THE AMESES ACCOUNTS IN THE US BUT THE PROSECUTORS WORRY THAT THE FOREIGN ACCOUNTS REMAIN OPEN AND COULD BE EMPTIED BY ANYONE USING THE AMESES CODED IDENTIFICATION NUMBERS REP ROBERT TORRICELLI D NJ A MEMBER OF THE HOUSE INTELLIGENCE COMMITTEE WHICH HEARD TESTIMONY FROM MR WOOLSEY WEDNESDAY SAID THE FIRST RESULT CONGRESS WILL LOOK FOR FROM MR WOOLSEY IS TO MAKE SURE THAT THE MANAGERS WHO FAILED TO PENETRATE MR AMES'S RICH LIFESTYLE AND EMPLOYEES WHO FED HIM INFORMATION ARE FOUND AND REMOVED THERE IS A NATIONAL OBLIGATION TO DEAL WITH QUALITY OF PERSONNEL AND FAILURES OF INTERNAL MECHANISMS SAID THE CONGRESSMAN WHO ADDED THAT MR WOOLSEY MAY FIND HIS CIA BUDGET BEING CUT IF HE DOESN'T ACT SWIFTLY 9403110086 940311 BUSINESS BRIEF CPC INTERNATIONAL INC COMPANY TO BUY 50 STAKE IN UNIT OF TONGAATHULETT CPC INTERNATIONAL INC SAID IT EXERCISED AN OPTION TO BUY A 50 EQUITY STAKE IN A SUBSIDIARY OF TONGAATHULETT GROUP LTD OF SOUTH AFRICA FOR ABOUT 20 MILLION THE UNIT TONGAAT CONSUMER FOODS WILL BE RENAMED CPC TONGAAT FOODS AND WILL CONTINUE TO MARKET CPC AND TONGAATHULETT FOOD PRODUCTS IN SOUTH AFRICA AND OTHER COUNTRIES IN SUBSAHARA AFRICA LAST YEAR CPC AND TONGAATHULETT ANNOUNCED A LICENSING AGREEMENT THAT ALLOWED TONGAAT CONSUMER FOODS TO MAKE AND MARKET SOME OF CPC'S BRANDED FOOD PRODUCTS CPC AN ENGLEWOOD CLIFFS NJ CONSUMER FOODS COMPANY SAID CPC TONGAAT FOODS SALES SHOULD BE MORE THAN 200 MILLION THIS YEAR 9403110085 940311 BUSINESS BRIEF NATIONAL SEMICONDUCTOR CORP PROFIT MORE THAN DOUBLED FOR THE FISCAL THIRD QUARTER NATIONAL SEMICONDUCTOR CORP BENEFITING FROM HIGHER PRICES ON ITS CHIPS AND A LOWER TAX RATE SAID ITS FISCAL THIRDQUARTER PROFIT MORE THAN DOUBLED TO 638 MILLION OR 48 CENTS A SHARE FOR THE YEARAGO QUARTER ENDED FEB 28 THE SANTA CLARA CALIF INTEGRATED CIRCUITS CONCERN HAD NET INCOME OF 269 MILLION OR 19 CENTS A SHARE SALES FOR THE CURRENT QUARTER JUMPED 11 TO 5447 MILLION FROM 4915 MILLION A YEAR AGO THE RESULTS FAR EXCEEDED EXPECTATIONS SAID WERTHEIM SCHRODER ANALYST STUART JOHNSON HE HAD EXPECTED FULLY DILUTED EARNINGS OF 35 CENTS COMPARED WITH THE 45 CENTS REPORTED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NATIONAL SEMICONDUCTOR SHARES CLOSED AT 2325 DOWN 125 CENTS 9403110084 940311 BUSINESS BRIEF CXR CORP DANIEL DROR & CO TO INCREASE INVESTMENT TO A 502 STAKE CXR CORP SAID IT WILL ISSUE 63 MILLION SHARES TO HOUSTON INVESTMENT FIRM DANIEL DROR & CO FOR 252 MILLION GIVING DROR A CONTROLLING STAKE IN THE COMPANY AFTER THE TRANSACTION DROR WILL HOLD 78 MILLION SHARES OR 502 OF CXR'S COMMON SHARES OUTSTANDING DROR CURRENTLY HOLDS 15 MILLION SHARES OR A 16 STAKE CXR A SAN JOSE CALIF MAKER OF TELEPHONETESTING EQUIPMENT AND MODEMS SAID IT WILL USE THE PROCEEDS TO MAKE ACQUISITIONS AND EXPAND ITS PRODUCT LINE THE COMPANY SAID IT USED A PREVIOUS 600000 CASH INFUSION FROM DROR TO PAY OFF SUBSTANTIALLY ALL ITS BANK DEBT LAST NOVEMBER CXR NAMED DROR'S PRINCIPAL DANIEL DROR CHAIRMAN OF CXR EFFECTIVE JAN 25 MR DROR SUCCEEDED RAYMOND E JACOBSON 71 YEARS OLD WHO IS RETIRING 9403110083 940311 INTERNATIONAL CHINA'S PREMIER LI CALLS FOR BALANCE BETWEEN ECONOMIC GROWTH AND STABILITY BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING PREMIER LI PENG STRUCK A NOTE OF CAUTION IN HIS ANNUAL WORK REPORT TO THE LEGISLATURE UNDERSCORING THE GOVERNMENT'S CONCERN OVER CHINA'S VARIED ECONOMIC AND SOCIAL PROBLEMS IN A SPEECH AT THE OPENING OF THE NATIONAL PEOPLE'S CONGRESS MR LI CALLED FOR A BALANCE BETWEEN GROWTH AND REFORM ON THE ONE HAND AND STABILITY ON THE OTHER HIS ADDRESS REFLECTED THE WORRY AMONG TOP LEADERS ABOUT CHINA'S DOUBLEDIGIT INFLATION AND DISGRUNTLED MASSES MR LI PRESENTED HIS REPORT AS SOME 2800 DELEGATES GATHERED FROM AROUND THE COUNTRY FOR THE ANNUAL CONVENTION OF CHINA'S LARGELY RUBBERSTAMP LEGISLATURE BESIDES APPROVING HIS REPORT THE REPRESENTATIVES ARE EXPECTED TO PASS THE 1994 BUDGET AND TWO LAWS DURING THE 13DAY SESSION RARELY LOOKING UP FROM HIS TEXT WHICH HE FOLLOWED WITH ONE FINGER THE PREMIER SAID CHINA FACES SOME FAILINGS AND MISTAKES IN THE WORK OF THE GOVERNMENT AND SOME MAJOR CONTRADICTIONS AND PROBLEMS IN THE MIDST OF PROGRESS AS A RESULT IT NEEDS TO CORRECTLY HANDLE THE RELATIONS BETWEEN REFORM DEVELOPMENT AND STABILITY MR LI ADDED FROM BEHIND A PODIUM SURROUNDED BY POTS OF PINK AND PURPLE AZALEA THUS WHILE PLEDGING TO PUSH AHEAD WITH A RAFT OF ECONOMIC AND FINANCIAL REFORMS UNVEILED LATE LAST YEAR MR LI ALSO PROPOSED SUPPORT FOR INDUSTRY AND AGRICULTURE THAT WAS MORE REMINISCENT OF THE CENTRALPLANNING ERA HE CALLED FOR A SHARP REDUCTION IN CHINA'S GROWTH RATE FROM MORE THAN 13 LAST YEAR TO 9 IN 1994 INFLATION WHICH IS RUNNING AT 23 IN MAJOR CITIES SHOULD EASE TO LESS THAN 10 FOR THE YEAR HE SAID MR LI TOUCHED ON A VARIETY OF OTHER SUBJECTS INCLUDING THE NEED TO OPPOSE MONEYWORSHIP ULTRAINDIVIDUALISM AND DECADENT LIFESTYLES AND TO CONTINUE THE CRACKDOWN ON CORRUPTION AND CRIME HE MISSPOKE IN SAYING THAT A BREAKDOWN IN SINOBRITISH TALKS ON HONG KONG'S FUTURE WAS THE FAULT OF CHINA INSTEAD OF BRITAIN HE WON THE LOUDEST AND LONGEST APPLAUSE FOR HIS COMMENTS ON CHINA'S POLICIES ON HONG KONG AND TAIWAN AND ON ITS ONGOING ROW WITH THE US OVER HUMAN RIGHTS MR LI SAID MAINTAINING STABILITY WILL REQUIRE TWO DIFFICULT SOMETIMES CONTRADICTORY TASKS THE FIRST IS TO REIN IN INFLATION WHICH IS EATING AWAY AT THE PURCHASING POWER AND PATIENCE OF WORKERS AND FARMERS IN THE PAST MONTH FOR EXAMPLE THE PRICE OF MILK HAS ALMOST DOUBLED THE SECOND TASK IS TO ENSURE A STEADY RATE OF GROWTH LAST JUNE BEIJING STARTED TO SQUEEZE CREDIT IN AN ATTEMPT TO COOL THE COUNTRY'S SPECULATIVE FEVER AND THE INFLATION THAT ENSUED SCATTERED WORKER PROTESTS AND COMPLAINTS FROM HURTING STATE ENTERPRISES HAVE SINCE FORCED BEIJING TO TAKE STEPS TO ENSURE THAT GROWTH CONTINUES AMID THE AUSTERITY BUT PUMPING FRESH FUNDS INTO THE SYSTEM AS BEIJING DID DURING THE LAST QUARTER OF 1993 IS INFLATIONARY ECONOMISTS SAY THE GOVERNMENT BEGAN TO TIGHTEN CREDIT AGAIN IN JANUARY SO POTENTIALLY ARE TWO MEASURES THAT MR LI PROPOSED GUARANTEEING CERTAIN PRICES FOR GRAIN AND COTTON AND ALLOCATING SPECIAL FUNDS TO BAIL OUT INDUSTRIES XIAO GENG WHO TEACHES ECONOMICS AT THE UNIVERSITY OF HONG KONG SAID HIS FEAR IS THAT THE BULK OF GOVERNMENT FUNDS IS NOW GOING TO INEFFICIENT STATE ENTERPRISES ALTHOUGH THIS WAS TECHNICALLY TRUE IN THE PAST MUCH OF THE FUNDS USED TO FIND THEIR WAY INTO THE VIBRANT PRIVATE SECTOR BEFORE BEIJING BEGAN TO CRACK DOWN ON SUCH PRACTICES BEFORE CHINA HAD HIGH INFLATION AND REAL GROWTH NOW IT COULD HAVE HIGH INFLATION BUT NO REAL GROWTH HE SAID BEIJING IS SURE TO TRY THIS YEAR TO ENFORCE ITS NEW UNPOPULAR TAX SYSTEM MR LI ALSO REITERATED THAT THE GOVERNMENT WOULD IMPOSE A CAP ON NEW CONSTRUCTION PROJECTS AND BAN THE ESTABLISHMENT OF NEW DEVELOPMENT ZONES THIS YEAR DESPITE SUCH EFFORTS MANY ECONOMISTS DOUBT THE GOVERNMENT WILL SUCCEED IN HITTING ITS INFLATION TARGET THE AVERAGE ANALYST FEELS IT WILL BE VERY VERY DIFFICULT TO KEEP INFLATION WITHIN 10 SAID ONE CHINESE ECONOMIST SOME SAY IT WILL BE 12 OTHERS SAY 15 BUT MOST DON'T THINK IT WILL GO BEYOND 18 IF ATTITUDES AMONG LOCAL REPRESENTATIVES TO THE CONGRESS ARE ANY CLUE BEIJING WILL ALSO HAVE DIFFICULTY KEEPING ECONOMIC GROWTH IN CHECK WANG XIANYI HEAD OF HUNAN PROVINCE'S PLANNING COMMISSION AND A CONGRESS DELEGATE SAID MR LI'S 9 GROWTH RATE IS TOO SLOW WE HAVE TO DEVELOP FASTER ACCORDING TO OUR CONDITIONS HE ADDS THAT HIS PROVINCE IS TARGETING GROWTH OF 10 ANOTHER DELEGATE HU JIDUO PREDICTED THAT HIS DISTRICT IN THE POOR CENTRAL PROVINCE OF ANHUI WOULD GROW AT A BREATHTAKING 20 THIS YEAR THE CONFIDENCE IN DEVELOPMENT IS STRONG AND THE CONDITIONS ARE ALL GOOD HE SAID WE HOPE BEIJING CAN SUPPORT OUR LOCAL PROJECTS SO WE CAN BUILD A GOOD FOUNDATION MR HU SAID THAT WITH ANHUI FEELING THE CREDIT CRUNCH HE WOULD FIGHT FOR MORE FUNDS DURING THE CONGRESS HE DISMISSED BEIJING'S WORRIES OVER INFLATION THE PEOPLE CAN TAKE INFLATION MORE THAN BEFORE HE SAID 9403110082 940311 THE BUSINESS OF LAW LAW LEGAL BEAT RENTTOOWN COMPANIES SUFFER SETBACK BY ALIX M FREEDMAN STAFF REPORTER OF THE WALL STREET JOURNAL WISCONSIN'S HIGHEST COURT UPHELD A RULING THAT SOCALLED RENTTOOWN TRANSACTIONS ARE SUBJECT TO TOUGH CONSUMER LAWS GOVERNING CREDIT SALES IN A SETBACK TO COMPANIES THAT RENT GOODS TO CUSTOMERS WITH THE OPTION TO BUY THE ORDER INVOLVING THORN EMI PLC'S RENTACENTER INC THE NATION'S LARGEST RENTTOOWN CHAIN WILL MAKE THE INDUSTRY SUBJECT IN WISCONSIN TO A NUMBER OF DISCLOSURES IT HAS LONG RESISTED TO COMPLY WITH THE WISCONSIN CONSUMER ACT RENTTOOWN COMPANIES WILL HAVE TO REVEAL THE STRAIGHT CASH PRICE FOR THEIR GOODS THE EFFECTIVE ANNUAL INTEREST RATES ON RENTALS AND THE TOTAL COST OF MERCHANDISE TO CONSUMERS OVER THE TERMS OF THEIR AGREEMENTS UNDER A TYPICAL RENTTOOWN TRANSACTION RENTERS WHO MAKE WEEKLY OR MONTHLY PAYMENTS USUALLY FOR A YEAR AND A HALF BECOME OWNERS CUSTOMERS WHO MAKE EVERY INSTALLMENT MAY END UP PAYING SEVERAL TIMES THE ITEM'S RETAIL VALUE AT EFFECTIVE ANNUAL INTEREST RATES THAT CAN TOP 200 THE TRANSACTIONS HAVE COME UNDER ATTACK BY SOME CONSUMER ACTIVISTS WHO CLAIM THEY EXPLOIT THE POOR RENTACENTER WAS THE SUBJECT OF A PAGE ONE ARTICLE IN THIS NEWSPAPER LAST YEAR RENTACENTER HAS LONG ARGUED THAT ITS TRANSACTIONS AREN'T CREDIT SALES BECAUSE MOST CUSTOMERS DON'T ULTIMATELY BUY THE PRODUCT AND CAN CANCEL AT ANY TIME THUS THE WICHITA KANBASED CHAIN SAYS IT DOESN'T CHARGE INTEREST AT ALL IN ADDITION IT SAYS THAT ITS PRICES REFLECT A VARIETY OF VALUABLE BENEFITS INCLUDING SERVICE AND DELIVERY THE WISCONSIN CASE WAS BROUGHT BY FLORA HALL OF MILWAUKEE WHO BECAME A RENTACENTER CUSTOMER IN APRIL 1991 UNDER HER CONTRACT MS HALL AGREED TO PAY 7796 A MONTH TO RENT A NEW WASHER AND DRYER THAT SHE SAID WAS WORTH 600 AT RETAIL UNDER THE ARRANGEMENT AFTER 19 MONTHS OF PAYMENTS SHE COULD OWN THE APPLIANCES BY MAKING A FINAL BALLOON PAYMENT OF ABOUT 162 THIS WOULD BRING THE TOTAL COST OF THE TRANSACTION EXCLUDING SALES TAXES AND CERTAIN FEES TO AROUND 1600 AFTER HANDING OVER 1069 IN RENT DURING THE COURSE OF THE YEAR MS HALL STOPPED MAKING PAYMENTS CLAIMING SHE HAD ALREADY PAID MORE THAN SHE BELIEVED THE APPLIANCES WERE WORTH AFTER RENTACENTER SUED TO RECOVER ITS MERCHANDISE A SMALLCLAIMSCOURT COMMISSIONER REFERRED THE MATTER TO MILWAUKEE COUNTRY CIRCUIT COURT WHICH RULED AGAINST RENTACENTER ON THE GROUNDS THAT THE TRANSACTION VIOLATED THE WISCONSIN CONSUMER ACT IN LATE DECEMBER A STATE APPEALS COURT AFFIRMED THAT DECISION INDUSTRY FOES APPLAUDED THE STATE SUPREME COURT'S DECISION BY A 30 VOTE NOT TO CONSIDER THE MATTER FURTHER THOUGH WISCONSIN DOESN'T SET LIMITS ON THE INTEREST PERMISSIBLE ON CREDIT SALES ROUGHLY 30 STATES DO THEREFORE IF WISCONSIN'S VIEW IS ADOPTED ELSEWHERE RENTTOOWN COMPANIES MAY HAVE TO REDUCE THEIR PRICES TO COMPLY WITH STATE INTEREST REGULATIONS IN SOME STATES THOUGH THE RENTTOOWN TRANSACTION CAN'T BE CONSTRUED AS A CREDIT SALE UNDER STATE LAWS THAT THE INDUSTRY HELPED DRAFT FOR THE FIRST TIME RENTTOOWN FIRMS WILL NOW HAVE TO HONESTLY DISCLOSE JUST HOW MUCH IT REALLY COSTS FOR THE CONSUMERS WHO DO BUSINESS WITH THEM SAID PATRICIA CAVEY A LAWYER FOR THE LEGAL AID SOCIETY OF MILWAUKEE WHICH REPRESENTED MS HALL IN THE APPEALS COURT THE QUESTION IS WHETHER THIS HUGE INDUSTRY CAN BE HONEST AND STILL SURVIVE SAID DAVID RAMP A LAWYER WITH THE LEGAL AID SOCIETY OF MINNEAPOLIS AND ONE OF THE INDUSTRY'S CHIEF OPPONENTS THIS IS THE BIGGEST VICTORY THAT CONSUMER ADVOCATES INVOLVED IN RENTTOOWN HAVE HAD IN COURT TO DATE IN A PREPARED STATEMENT RENTACENTER SAID IT WAS SURPRISED AND DISAPPOINTED THAT THE STATE SUPREME COURT WOUDN'T REVIEW THE CASE WE DISAGREE WITH THIS DECISION BUT WE ALSO RECOGNIZE THAT THIS CASE HAS NOW BEEN DECIDED THE COMPANY SAID RENTACENTER ADDED HOWEVER THAT THE LOWER APPEALS COURT JUDGES DID NOT AGREE AMONG THEMSELVES ABOUT WHY RENTTOOWN AGREEMENTS ARE CREDIT SALES AND DID NOT ESTABLISH CLEAR RULES TO GOVERN FUTURE CASES THE WISCONSIN SUPREME COURT ORDER MADE PUBLIC ON WEDNESDAY HAS IMPLICATIONS FOR OTHER CASES PENDING AGAINST THE INDUSTRY MOST NOTABLY THE CLOSELY WATCHED STARKS VS RENTACENTER LAWSUIT WHICH IS NOW ON APPEAL IN THE FEDERAL APPEALS COURT IN ST LOUIS INVOLVES THE SAME ISSUES AS THE HALL ACTION A YEAR AGO RENTACENTER WON THE FIRST ROUND OF STARKS IN FEDERAL DISTRICT COURT IN ST PAUL MINN IN ADDITION A CASE AGAINST RIVAL COLORTYME INC FILED LAST APRIL BY THE WISCONSIN ATTORNEY GENERAL'S OFFICE IS PENDING IN STATE COURT IN MILWAUKEE ITS ALLEGATIONS INCLUDE THAT COLORTYME FAILED TO DISCLOSE CREDIT AND FINANCE TERMS RENTACENTER WHICH OPERATES IN 49 STATES CONTROLS ABOUT 25 OF THE 28 BILLION RENTTOOWN MARKET AS OF 1991 THE 1200OUTLET CHAIN HAD 18 STORES IN WISCONSIN A CLIENT IS CHALLENGING A 2750000 LEGAL FEE CHARGED BY HARVARD LAW SCHOOL PROFESSOR LAURENCE H TRIBE IN A CORPORATE DISPUTE IN NEW JERSEY THE CLIENT RALPH VENUTO IS ARGUING THAT THE FEE MR TRIBE AND HIS ASSOCIATES CHARGED FOR FILING POSTTRIAL AND APPELLATE MOTIONS AND FOR ARGUING AN APPEAL WERE UNCONSCIONABLE BASED ON THE AMOUNT OF MONEY INVOLVED AND THE RESULT OBTAINED THIS WEEK MR VENUTO OWNER OF LIGHTNING LUBE INC BLACKWOOD NJ FILED A REQUEST FOR FEE ARBITRATION IN ADDITION AN ATTORNEY WHO HAD WORKED FOR MR VENUTO IN THE SAME CASE HAS SUED MR TRIBE AND HARVARD LAW SCHOOL IN FEDERAL COURT IN CAMDEN NJ ALLEGING THAT MR TRIBE DIDN'T DO MUCH WORK ON THE CASE YET STILL ASKED FOR A HEFTY FEE THE FORMER LAWYER STEVEN KRAMER ALSO SAYS MR TRIBE SLANDERED HIM FALSELY TELLING MR VENUTO THAT MR KRAMER WAS GETTING DISBARRED MR KRAMER ACKNOWLEDGES HE HAS AN ECONOMIC INTEREST IN PERSUADING MR TRIBE TO CUT HIS FEE MR KRAMER GETS 20 OF THE AMOUNT MR VENUTO SAVES ON MR TRIBE'S FEE UNDER A SEPARATE FEESETTLEMENT PACT REACHED AFTER MR VENUTO CHALLENGED MR KRAMER'S TRIAL FEES MR TRIBE CALLED MR KRAMER'S LAWSUIT AGAINST HIM SILLY AND FRIVOLOUS HE DECLINED TO COMMENT ON MR VENUTO'S ARBITRATION REQUEST EXCEPT TO SAY THAT THE CASE WAS COMPLICATED AND TOOK A LOT OF TIME AND THAT THE FEE AGREEMENT WAS NOT ATYPICAL MR TRIBE WAS RETAINED IN JUNE 1992 TO REPRESENT MR VENUTO AND LIGHTNING LUBE AN OPERATOR OF QUICK LUBE OUTLETS LIGHTNING LUBE HAD ALREADY WON A JURY VERDICT OF 115 MILLION IN ACTUAL DAMAGES AND 50 MILLION IN PUNITIVE DAMAGES IN A DISPUTE WITH WITCO CORP BUT THE FEDERAL JUDGE PRESIDING OVER THE TRIAL HAD THROWN OUT THE PUNITIVEDAMAGE AWARD LAST YEAR THE THIRD US CIRCUIT COURT OF APPEALS IN PHILADELPHIA UPHELD THE LOWERCOURT DECISION REJECTING PROF TRIBE'S ARGUMENTS THAT PUNITIVE DAMAGES SHOULD BE REINSTATED PROF TRIBE IS A CONSTITUTIONAL LAW SPECIALIST WHO HAS BEEN MENTIONED AS A POSSIBLE SUPREME COURT NOMINEE HE HAS AN ACTIVE AND LUCRATIVE LAW PRACTICE IN ADDITION TO HIS TEACHING AND ACADEMICWRITING WORK LAURIE P COHEN CONTRIBUTED TO THIS ARTICLE 9403110081 940311 DENNY'S BEGINS REPAIRING ITS IMAGE AND ITS ATTITUDE BY ELEENA DE LISSER AND BENJAMIN A HOLDEN STAFF REPORTERS OF THE WALL STREET JOURNAL DENNY'S RESTAURANT CHAIN SADDLED WITH OLD DRAB OUTLETS FINANCIAL LOSSES AND ALLEGATIONS OF BIAS AGAINST BLACK CUSTOMERS IS OVERHAULING ITS IMAGE ITS STORES AND ITS ATTITUDE ALL 1515 RESTAURANTS WILL BE REMODELED OVER THE NEXT THREE YEARS AT A COST OF AT LEAST 190 MILLION YELLOWANDBROWN INTERIORS AND GREEN POLYESTER UNIFORMS LONG FAVORED BY DENNY'S MANAGEMENT ARE OUT REDS AND BLUES AND BUTTONDOWN SHIRTS WITH BRIGHTLY COLORED TIES ARE IN MENUS ARE BEING REVAMPED NEW COOKING EQUIPMENT IS BEING INSTALLED TO HELP SPEED UP SERVICE TELEVISION ADS EMPHASIZING THE CHAIN'S BREAKFAST OFFERINGS AND A NEW FOCUS ON VALUE WILL RUN IN MORE MARKETS AND FOR LONGER PERIODS OF TIME BUT WHILE THE COMPANY HAS CLEARLY MOVED FORWARD ON SOME FRONTS IT HAS BARELY LEFT THE STARTING GATE ON OTHERS DENNY'S BY MOST ACCOUNTS HAS BEGUN THE SLOW PROCESS OF ADDRESSING THE CHARGES OF RACISM THAT HAVE BEDEVILED THE COMPANY FOR THE PAST YEAR WHILE MANY OF THE PROMISES THE CHAIN MADE LAST SUMMER TO THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE HAVE YET TO BE KEPTMINORITY BUSINESSES ARE STILL RECEIVING ONLY A SLIVER OF DENNY'S PURCHASING MARKETING AND ADVERTISING DOLLARSCHANGE IS EVIDENT THE PERCENTAGE OF BLACK MANAGERS FOR INSTANCE ROSE TO 67 FROM 44 IN THE PAST SIX MONTHS THIS IS A COMPANY THAT STARTED OUT TRYING TO DEAL WITH THEIR PROBLEM IN A SUPERFICIAL WAY SAYS GUY T SAPERSTEIN AN OAKLAND CALIF LAWYER WHO LAST YEAR BROUGHT A CLASSACTION LAWSUIT AGAINST DENNY'S BUT NOW THEY'RE DEALING WITH IT IN A SUBSTANTIVE REMEDIAL WAY IT'S GOOD FOR EVERYBODY JUST 12 MONTHS AGO LITTLE LOOKED GOOD FOR DENNY'S PART OF FLAGSTAR COS IN SPARTANBURG SC THE JUSTICE DEPARTMENT HAD SUBSTANTIATED ALLEGATIONS OF BIAS AGAINST BLACK CUSTOMERS OF THE CHAIN A GROUP OF 32 BLACK CUSTOMERS SUED THE COMPANY IN FEDERAL COURT IN SAN JOSE CALIF ALLEGING THAT BLACKS IN CALIFORNIA DENNY'S RESTAURANTS WERE REQUIRED TO PREPAY FOR MEALS AND PAY COVER CHARGES WHILE WHITES WERE NOT FOUR ADDITIONAL DISCRIMINATION SUITS INCLUDING ONE BY A GROUP OF SECRET SERVICE AGENTS WHO SAID THEY WERE DENIED SERVICE IN A DENNY'S SOON FOLLOWED LAST JULY THE COMPANY AGREED WITH THE NAACP TO INVEST 1 BILLION OVER SEVEN YEARS TO DOUBLE THE NUMBER OF DENNY'S FRANCHISES OWNED BY MINORITIES ADD HUNDREDS OF AFRICANAMERICAN MANAGERS AND SHARPLY INCREASE PURCHASING FROM MINORITY ENTERPRISES IN ADDITION TO THE INCREASED PERCENTAGE OF MINORITY MANAGERS ONE AFRICANAMERICAN WOMAN DR VERA KING FARRIS PRESIDENT OF RICHARD STOCKTON COLLEGE IN NEW JERSEY HAS BEEN ADDED TO THE FLAGSTAR BOARD CHARITABLE CONTRIBUTIONS TO MINORITY GROUPS ARE MORE THAN DOUBLE THE ANNUAL 100000 THAT WAS PROMISED BUT THE NUMBER OF BLACKOWNED FRANCHISES STANDS TODAY WHERE IT STOOD LAST YEAR AT ONE AND OF THE 96 MILLION THAT FLAGSTAR PLANNED TO PROVIDE FOR MINORITY SUPPLIERS IN THE FIRST YEAR OF THE AGREEMENT ONLY 10 MILLION IN CONTRACTS HAVE BEEN SIGNED SO FAR THE COMPANY ACKNOWLEDGES BOTH THE PROGRESS AND THE LACK OF IT C RONALD PETTY DENNY'S CHIEF OPERATING OFFICER SAYS THAT BY THE END OF 1993 THE COMPANY RECEIVED 600 INQUIRIES FROM MINORITIES REGARDING FRANCHISE OWNERSHIP AND AS A RESULT SENT OUT MORE THAN 100 APPLICATIONS TODAY HE SAYS 55 BLACK APPLICANTS ARE IN THE FINAL STAGES OF REVIEW DENNY'S SAYS AWARDING CONTRACTS TO MINORITY BUSINESSES HAS PROVED MORE DIFFICULT THAN IT FIRST THOUGHT WE WERE GETTING A LOT OF INQUIRIES FROM AFRICANAMERICANS WHO WERE IN ONE STAGE OR ANOTHER OF DEVELOPING THEIR OWN BUSINESS BUT WEREN'T EQUIPPED TO DO BUSINESS WITH CORPORATE AMERICA SAYS THOMAS A LOUNDS JR A FLAGSTAR EXECUTIVE TO EASE THAT PROBLEM FLAGSTAR HAS PROVIDED INITIAL FUNDING FOR A FAIR SHARE RESOURCE CENTER IN NEW YORK CITY WHICH WILL OPEN IN APRIL AND WILL PROVIDE GUIDANCE TO MINORITY ENTREPRENEURS OVERALL MAINTAINS MR LOUNDS THE PACT WITH THE NAACP IS PROCEEDING APACE GETTING THE COMPANY'S MARKETING STRATEGY ON TRACK REQUIRES FIRST AND FOREMOST A FACELIFT MR PETTY THE CHIEF OPERATING OFFICER CHARACTERIZES TODAY'S DENNY'S AS A 40YEAROLD CONCEPT WITH NO FUNDAMENTAL CHANGES IN 20 YEARS ACCORDINGLY AS MUCH AS 250000 WILL BE POURED INTO EACH RESTAURANT MAKING DINING AREAS MORE INVITING BOTH INSIDE AND OUT MR PETTY SAYS MUCH OF WHAT DENNY'S ENVISIONS IS NEWLY ON DISPLAY IN AND AROUND HOUSTON THERE 21 OUTLETS HAVE BEEN REFURBISHED WITH ONE OF THREE NEW INTERIOR DESIGNS A SOUTHWESTERN MOTIF A TRADITIONAL WOODPANELED LOOK AND A CONTEMPORARY THEME WITH RED AND BLUE ACCENTS OUTSIDE A THIN RIBBON OF GREEN NEON WRAPS AROUND THE ROOF OF THE RENOVATED RESTAURANTS MAKING THEM MORE NOTICEABLE AT NIGHT NEW MENUS HIGHLIGHT FIT FARE OR LOWCALORIE ITEMS SENIOR SELECTIONS ARE PRINTED IN LARGER TYPE THAT'S EASIER TO READ REGIONAL PREFERENCES WILL BE CATERED TO FRIED OKRA ALREADY APPEARS ON SOUTHEASTERN TABLES TO COMPLEMENT THE 27 MILLION PIES DENNY'S SELLS EACH YEAR THE COMPANY HAS TEAMED UP WITH BASKINROBBINS TO TEST THE SALE OF ICE CREAM NEW DENNY'S MERCHANDISE STRESSES THAT THE RESTAURANTS ARE OPEN 24 HOURS TSHIRTS SWEATSHIRTS AND MUGS WITH THE WORDS DENNY'S TIL DAWN WITH BREAKFAST ACCOUNTING FOR 40 OF ALL SALES DENNY'S PLANS TO FOCUS HEAVILY ON THAT MEAL IN ITS ADVERTISING AND PROMOTIONS MOREOVER 70 OF THE CHAIN'S BUSINESS COMES FROM REPEAT CUSTOMERS OF THOSE ALMOST HALF ARE OVER AGE 50 INDEED DENNY'S CALCULATES THAT ITS OLDER CLIENTS WALK THROUGH THE FRONT DOOR TWO TO FIVE TIMES EACH WEEK NICHOLAS A CASTALDO VICE PRESIDENTMARKETING SAYS THE COMPANY NEEDS TO ATTRACT NEW CUSTOMERS WITHOUT ALIENATING THE OLD ONE WAY TO DO THAT HE SAYS IS TO MAKE DENNY'S THE VALUE LEADER WITHIN ITS SEGMENT OF THE RESTAURANT INDUSTRY WILL DENNY'S SUCCEED RON PAUL PRESIDENT OF TECHNOMIC INC A FOODSERVICE CONSULTING FIRM IN CHICAGO SAYS THE COMPANY IS IN A DIFFICULT CATEGORY WITHIN THE RESTAURANT BUSINESS SOCALLED MIDPRICED FAMILYDINING OUTLETS LIKE DENNY'S SHONEY'S CRACKER BARREL AND OTHERS ALL HAVE TO GRAPPLE BOTH WITH CHEAPER FASTFOOD RIVALS AND WITH PRICIER CASUAL RESTAURANTS WHICH TYPICALLY PROVIDE MORE ATTRACTIVE AND LIVELIER SETTINGS ADDS RICHARD K HERZER CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF IHOP CORP THE RESTAURANT CHAIN BASED IN GLENDALE CALIF I THINK DENNY'S CONCENTRATION ON REHABILITATION OF THE RESTAURANTS IS EXACTLY THE WAY THEY SHOULD GO THE BETTER ALL OF US ARE THE BETTER THE SEGMENT WILL BE REGARDED 9403110080 940311 MARKETING WITH SAMPLING THERE IS TOO A FREE LUNCH BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL YOU NEVER KNOW WHAT'S COOKING AT THE SUPERMARKET THESE DAYS AS MORE STORES AND MANUFACTURERS PLY SHOPPERS WITH FREE SAMPLES OF PASTA PIZZA AND ASSORTED OTHER FOODS NOT TO MENTION TRIAL SIZES OF SHAMPOO ANTACIDS TOILET TISSUE AND JUST ABOUT EVERY OTHER PRODUCT A GROCERY STORE SELLS SAMPLING IS A BIG BUSINESS AND SMALL WONDER TWOTHIRDS OF ALL PURCHASING DECISIONS ARE MADE ONCE THE CONSUMER IS IN THE STORE SAYS KERRY J SMITH MANAGING EDITOR OF PROMO A MAGAZINE FOR THE MARKETING INDUSTRY PEOPLE NO LONGER GO TO STORES WITH SHOPPING LISTS IN HAND HE SAYS INSTEAD THEY COME WITH AN EMPTY BELLY AND AN OPEN MIND WHICH IS WHY THE FREESAMPLE APPROACH MAKES PERFECT SENSE AN ADDED BENEFIT FOR FOOD COMPANIES GIVING OUT SAMPLES WHICH ARE OFTEN ACCOMPANIED BY COUPONS OFTEN HELPS THEM GET BETTER STORE DISPLAY SPACE AS FOR CUSTOMERS THE BENEFITS ARE APPARENT DURING A VISIT TO A BIGG'S HYPERMARKET A COMBINATION GROCERY AND GENERALMERCHANDISE STORE IN FLORENCE KY AFTER 10YEAROLD ALEX ROLFSEN AND HIS LITTLE BROTHER ANDREW GOBBLE FREE PIZZA AT THE BIGG'S STORE THEIR FATHER TOSSES A COUPLE OF THE FROZEN PIES INTO HIS SHOPPING CART THAT'S WHY I BRING THEM ALONG WHEN I GO SHOPPING CHUCK ROLFSEN SAYS TO ASK THEM WHAT THEY LIKE BECAUSE IF I BUY IT WITHOUT A SAMPLE THEY WON'T EAT IT AND THAT'S WHY MARKETERS WHO KNOW THAT CHILDREN INFLUENCE THEIR PARENTS' SHOPPING DECISIONS GEAR MANY SAMPLES LIKE PIZZA AND CORN DOGS TOWARD YOUNGSTERS FREE SAMPLING HAS DRAWBACKS IT CLOGS SUPERMARKET AISLES AND CREATES MESSES RETAILERS ALSO MAY BE LIABLE IF A SHOPPER SLIPS ON SPILLED FOOD OR A DISCARDED TOOTHPICK MANY SAMPLERS HAVE ABANDONED TOOTHPICKS AND SERVE FOOD IN LITTLE PAPER CUPS WITH PLASTIC UTENSILS OR ON NAPKINS AND IT ISN'T ALL WINWIN FOR MANUFACTURERS GIVING OUT SAMPLES IS LABORINTENSIVE AND EXPENSIVE AND IT CAN BACKFIRE IF A CUSTOMER TRIES A SAMPLE AND GRIMACES OR SPITS IT OUT IN FRONT OF OTHER SHOPPERS THEN THERE ARE MOOCHERS WHO SAMPLE AND SAMPLE AND SAMPLE AND NEVER BUY STILL MORE COMPANIES SEEM TO BE DOING IT PROMO MAGAZINE ESTIMATES SOME 125 MILLION WAS SPENT LAST YEAR ON SUPERMARKET SAMPLING AND DEMONSTRATIONS UP 15 FROM THE PREVIOUS YEAR AND MORE SUPERMARKETS ARE GETTING INTO THE ACT HANDING OUT FREE SAMPLES OF THEIR OWN TO BOOST SALES IN DELI MEAT FISH AND BAKERY DEPARTMENTS INDEED FOR MANY SHOPPERS A VISIT TO THE FOOD STORE THESE DAYS CAN TURN INTO A FREE SIXPLUSCOURSE BANQUET WE ALWAYS COME OVER AT LUNCH WE'RE HUNGRY AND THE KIDS ARE HUNGRY SO WE HIT ALL THE SAMPLE STANDS SAYS PAT MORAN AS HE AND HIS WIFE CINDY AND THEIR CHILDREN STROLL BY THE FREEZER SECTION OF THE FLORENCE BIGG'S THE MORANS LIKE THE FREE BAGEL SLICES AND CORN DOGS AND TOSS PACKAGES OF BOTH INTO THEIR OVERFLOWING SHOPPING CART MOST SHOPPERS ARE WILLING TO TRY SAMPLES AND THOSE WHO DO WILL LIKELY BUY THE PRODUCT SAYS BILL SINNOTT OF RYAN PARTNERSHIP A MARKETINGSERVICES CONCERN IN WESTPORT CONN HE NOTES THAT THE PRACTICE HAS A LONG HISTORY IT STARTED EARLY IN THE CENTURY WITH THE FREE PICKLE AS A WAY TO BUILD BUSINESS IN THE DELI SUE SCHOENLING DIRECTOR OF COMMUNICATIONS FOR BIGG'S SAYS MORE THAN 60 OF CUSTOMERS SAMPLE PRODUCTS AND ABOUT 37 BUY THE PRODUCT ONE BIGG'S STORE TRIPLED ITS PIZZA SALES AFTER GIVING OUT SAMPLES AND THE INCREASED SALES CONTINUED LONG AFTER THE GIVEAWAYS STOPPED SHE SAYS BIGG'S A CLOSELY HELD CINCINNATIBASED CHAIN OF TWO SUPERMARKETS AND FIVE HYPERMARKETS TRIES TO HAVE DOZENS OF SAMPLES IN EACH STORE ON HEAVY WEEKEND SHOPPING DAYS IT'S A GOOD WAY TO MAKE CONTACT WITH THE CUSTOMERS SAYS DANIEL GALINGER THE PERISHABLES MANAGER AT THE FLORENCE BIGG'S IN THE FISH DEPARTMENT HE TYPICALLY PUTS OUT THREE OR FOUR PLATTERS OF CRACKERS AND SEAFOOD SALADS TO ENTICE SHOPPERS IN MANY CASES COMPANIES WORK WITH STORES JOINTLY OFFERING SAMPLES THAT COMPLEMENT EACH OTHER CPC INTERNATIONAL INC FOR EXAMPLE WANTED SHOPPERS TO TRY ITS THOMAS' SANDWICH MUFFINS SO IT JOINED FORCES LAST YEAR WITH RETAILERS IN SELECTED MARKETS WHO SUPPLIED MEAT AND WITH COMPANIES THAT SUPPLIED CONDIMENTS THE SANDWICHES WERE PREPARED IN THE STORES AND SERVED ON THE MUFFINS FOR CPC THIS WAS AN OPPORTUNITY TO SAY THAT THESE MUFFINS ARE NOT JUST FOR BREAKFAST THEY'RE ALSO FOR SANDWICHES AND BARBECUES SAYS BRUCE MALINOWSKI DIRECTOR OF CONSUMER PROMOTION FOR CPC'S BEST FOODS GROCERYPRODUCTS UNIT HE ADDS THAT THE PITCH HELPED MUFFIN SALES IN THOSE MARKETS WHATEVER THE BENEFITS SOME RETAILERS FOCUS ON SAMPLING'S DISADVANTAGES KROGER DOESN'T DO A LOT OF IT SAYS PAUL BERNISH SPOKESMAN FOR CINCINATTIBASED KROGER CO YOU GET PEOPLE KIND OF CLOGGED UP IN THE MIDDLE OF THE STORE IT SLOWS TRAFFIC MOST SAMPLING IS HANDLED BY CONTRACT WORKERS EMPLOYED BY SMALL OUTFITS THAT DEAL DIRECTLY WITH STORES OR COMPANIES THE GROWTH OF INSTORE SAMPLING IS CREATING A WORK FORCE OF DEMO LADIES MOST WORKERS ARE OLDER RETIRED WOMEN LOOKING FOR EXTRA INCOME WHO TYPICALLY EARN BETWEEN 550 AND 9 AN HOUR DEPENDING ON THE MARKET AND THEIR EXPERIENCE IT'S NOT EASY WORK THE AISLES CAN BE CHILLY PARTICULARLY REFRIGERATED SECTIONS WHERE MOST SAMPLING IS DONE AND DEMO LADIES WEAR SEVERAL LAYERS OF CLOTHES I DO GET A LITTLE COLD ON MY SOUTH SIDE SAYS GAIL WARNER WHO IS STANDING NEXT TO A BIG FREEZER CHEST GIVING OUT TOASTED BAGEL SLICES TOPPED WITH CREAM CHEESE AT THE FLORENCE BIGG'S ELSEWHERE IN THE STORE MIRIAM DOYLE 62 IS GIVING OUT PAPER CUPS OF PASTA SALAD THESE ARE ALL PRECOOKED ALL YOU HAVE TO DO IS HEAT THEM THROUGH SHE TELLS CUSTOMER AFTER CUSTOMER SHOPPERS CAN BE RUDE THEY COMPLAIN WHEN THE FOOD RUNS OUT OR GRAB AT SAMPLES WHILE THEY ARE STILL BEING PREPARED SOMETIMES I THINK THEY'RE GOING TO EAT MY ARMS OFF SAYS 56YEAROLD MAUREEN SEITER AS SHE COOKS CORN DOGS IN AN ELECTRIC SKILLET WYOMA KITZ WHO IS BAKING PIZZA IN A SMALL TABLETOP OVEN SAYS HER PEEVES ARE THE OLD MEN AND LITTLE CHILDREN WHO KIND OF PICK OVER THE FOOD THEY START TO TAKE ONE PIECE AND PICK ANOTHER I HAVE TO THROW IT ALL OUT WHEN THEY DO THAT BUT DEMO WORKERS SEE VIRTUE IN FREE SAMPLES MARIE MAINES GIVING OUT PIZZA SAYS PEOPLE TODAY DON'T HAVE A LOT OF MONEY TO SPEND ON A NEW PRODUCT WHEN THEY DON'T KNOW WHAT IT TASTES LIKE 9403110079 940311 THURSDAY'S MARKETS BONDS AND STOCKS TUMBLE ON WHITEWATER CONCERNS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S POLITICAL TROUBLES SENT BOND PRICES TUMBLING STOCK PRICES AND THE DOLLAR FOLLOWED SUIT THE DOW JONES INDUSTRIAL AVERAGE SLID 2279 POINTS TO 383062 STANDARD & POOR'S 500STOCK INDEX LOST 316 TO 46390 AND THE NASDAQ COMPOSITE INDEX SANK 396 TO 78909 THE YIELD ON THE 30YEAR TREASURY BOND WHICH CLIMBS AS BOND PRICES FALL JUMPED TO 698 THE HIGHEST LEVEL SINCE MAY FROM 683 WEDNESDAY BOND PRICES WERE PUMMELED BY TRADERS' INCREASING WORRIES ABOUT THE POLITICAL CONTROVERSIES SWIRLING AROUND THE PRESIDENT AND FIRST LADY HILLARY RODHAM CLINTON THE FIRST FAMILY'S TROUBLES WITH THE WHITEWATER AFFAIR CAME INTO THE SPOTLIGHT YESTERDAY WHEN ADMINISTRATION AIDES BEGAN APPEARING BEFORE A FEDERAL GRAND JURY ALSO A CONGRESSIONAL HEARING INTO THE WHITEWATER MATTER SEEMED MORE LIKELY DESPITE OPPOSITION BY SPECIAL COUNSEL ROBERT FISKE THE ADMINISTRATION ALSO WAS CONFRONTED WITH A CALL BY 81 REPUBLICAN HOUSE MEMBERS FOR AN INVESTIGATION INTO MRS CLINTON'S HOLDINGS IN AN INVESTMENT PARTNERSHIP THAT SOLD SHORT SEVERAL HEALTHCARE STOCKS EARLY LAST YEAR IT SEEMS SOMETHING NEW ABOUT THE ADMINISTRATION'S DIFFICULTIES COMES OUT EVERY DAY SAID DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA THAT CREATES NERVOUSNESS AMONG TRADERS IN LONGTERM BONDS MR MAUDE SAID WORRIES ABOUT THE ADMINISTRATION ALSO WERE BEHIND A SHARP RISE IN GOLD PRICES AS INVESTORS FLOCK TO GOLD IN TIMES OF UNCERTAINTY GOLD FOR APRIL DELIVERY JUMPED 810 TO 38820 AN OUNCE SOME TRADERS SAID BONDS ALSO SUFFERED BECAUSE OF A REPORT BY THE WASHINGTONBASED CONSULTANCY JOHNSON SMICK INTERNATIONAL INC THAT RAISED NEW QUESTIONS ABOUT THE CIRCUMSTANCES OF THE SUICIDE OF FORMER WHITE HOUSE ATTORNEY VINCENT FOSTER THE WHITE HOUSE DISMISSED THE REPORT THE CLINTON ADMINISTRATION'S TROUBLES COME AT A BAD TIME FOR AN ALREADYJITTERY BOND MARKET MR MAUDE SAID THE FLOW OF FUNDS INTO BONDS HAS SLOWED CONSIDERABLY AS MUTUAL FUNDS HOLD BACK MAKING FURTHER COMMITMENTS COMMERCIAL BANKS WHICH WERE HEAVY BUYERS LAST YEAR ALSO HAVE TIGHTENED PURSE STRINGS IN THE PAST THREE MONTHS MR MAUDE SAID HE ADDED THAT BOND TRADERS ARE APPREHENSIVE ABOUT NEXT WEEK'S HEAVY DOCKET OF INFLATION REPORTS IT WAS THE INFLATION COMPONENT IN LAST MONTH'S FEDERAL RESERVE BANK OF PHILADELPHIA SURVEY OF BUSINESS ACTIVITY THAT SET OFF A BOND ROUT THE STOCK MARKET ALSO SUFFERED FROM CONTINUING UNCERTAINTY ABOUT INTEREST RATES THERE'S SO MUCH CONFUSION ABOUT WHAT THE NEXT FEDERAL RESERVE INTERESTRATE MOVE IS SAID ELAINE GARZARELLI LEHMAN BROTHERS' STOCK STRATEGIST WHO RECENTLY CHANGED HER STANCE ON THE STOCK MARKET TO NEUTRAL FROM BULLISH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 032 TO 11549 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 3335 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1486 ISSUES FELL AND 688 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE SANK MORE THAN 1 5/8 OR MORE THAN 1625 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16825 MARKS AND 10525 YEN COMPARED WITH 17025 MARKS AND 10580 YEN WEDNESDAY 9403110078 940311 TECHNOLOGY & HEALTH NEXGEN PLANS TO UNVEIL MICROPROCESSOR THAT COULD RIVAL INTEL'S PENTIUM CHIP BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP SOON WILL HAVE ANOTHER UPSTART COMPETITOR A SMALL SILICON VALLEY COMPANY WITH SOME POWERFUL ALLIES NEXGEN MICROPRODUCTS INC AFTER SEVEN YEARS OF STRUGGLE ON MONDAY WILL UNVEIL WHAT AMOUNTS TO THE FIRST CLONE OF INTEL'S HIGHLY TOUTED PENTIUM MICROPROCESSOR ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS THE CHIP CALLED THE NX586 IS DESIGNED TO RUN THE SAME SOFTWARE AS THE INTEL CHIP BUT USES A DIFFERENT HARDWARE DESIGN FORCING NEXGEN TO CONVINCE PERSONAL COMPUTER MAKERS TO SHIFT TO DIFFERENT CIRCUIT BOARDS THAN THE ONES USED FOR INTEL'S PRODUCTS BUT NEXGEN HAS SOME IMPORTANT FINANCIAL BACKERS INVESTORS INCLUDE COMPAQ COMPUTER CORP ITALY'S ING C OLIVETTI & CO JAPANESE PUBLISHING AND COMPUTER SOFTWARE CONCERN ASCII CORP AND KLEINER PERKINS CAUFIELD & BYERS A LARGE SAN FRANCISCOBASED VENTURE FIRM TOGETHER THE COMPANIES HAVE ALREADY SUNK 90 MILLION INTO THE COMPANY WHICH IS BASED IN MILPITAS CALIF NEXGEN ALSO MAY LAND INTERNATIONAL BUSINESS MACHINES CORP TO MANUFACTURE NEXGEN'S CHIPS AT A FACTORY IN BURLINGTON VT IBM BUILT NEXGEN'S SAMPLE CHIPS AND A FORMER IBM EXECUTIVE PAUL LOW IS A NEXGEN DIRECTOR BUT AN IBM SPOKESMAN SAYS THAT NO DEAL HAS BEEN REACHED TO BUILD NEXGEN'S CHIPS WE HAVE HAD DISCUSSIONS WITH THEM BUT WE DON'T HAVE AN AGREEMENT HE SAID IBM'S HELP COULD BE CRUCIAL NOT MANY MANUFACTURING COMPANIES HAVE THE ADVANCED FACTORIES NEEDED TO BUILD PENTIUMCLASS PROCESSORS FEWER STILL HAVE PATENT CROSSLICENSE ARRANGEMENTS WITH INTEL AS IBM DOES THAT CAN PROVIDE A DEFENSE TO ANY PATENT LITIGATION FROM INTEL OTHER MAKERS OF CLONES OF INTEL CHIPS INCLUDING ADVANCED MICRO DEVICES INC AND CYRIX CORP HAVE STRUGGLED TO FIND SOCALLED FOUNDRIES TO GIVE THEM SUFFICIENT CAPACITY TO SERVE THE MARKET INTEL WITH 74 OF THE 88 BILLION MICROPROCESSOR MARKET ACCORDING TO DATAQUEST INC HAS BEEN INVESTING STEADILY IN NEW PLANTS AND EQUIPMENT MANUFACTURING IS ONE OF THE BIGGEST HURDLES NEXGEN FACES SAID ONE CHIPINDUSTRY OBSERVER FAMILIAR WITH THE COMPANY'S PLANS HE ALSO PREDICTS THAT NEXGEN MAY FACE MORE QUESTIONS THAN COMPETITORS ABOUT WHETHER IT OFFERS TRUE COMPATIBILITY WITH INTEL'S CHIPS NEXGEN'S DESIGN REMOVES SOCALLED FLOATINGPOINT FUNCTIONS THAT GIVE THE PENTIUM CHIP SOPHISTICATED GRAPHICS PERFORMANCE BUT AREN'T REQUIRED BY MANY STANDARD PERSONAL COMPUTERS NEXGEN OFFERS AN ADDITIONAL CHIP TO COMPLETE ALL OF THOSE FUNCTIONS THE NX586 WILL COME IN TWO SPEEDS 60 MEGAHERTZ AND 66 MEGAHERTZ THAT ARE EXPECTED TO BE ABOUT AS FAST AS INTEL'S PENTIUM CHIPS OPERATING AT THOSE FREQUENCIES IT WILL BE PRICED AT 460 OR ABOUT 300 LESS THAN COMPARABLE PENTIUMS PLUS AN EXTRA 128 FOR THE FLOATINGPOINT ACCESSORY CHIP KNOWLEDGEABLE PEOPLE SAID ANOTHER PROBLEM FOR NEXGEN IS THAT INTEL JUST BOOSTED THE SPEED OF PENTIUM BY INTRODUCING MODELS OPERATING AT 90 MEGAHERTZ AND 100 MEGAHERTZ ANALYSTS NOTED NO MAJOR PC MAKERS HAVE COMMITTED TO THE NX586 YET BUT INDUSTRY OBSERVERS EXPECT A HANDFUL OF SMALLER COMPANIES TO ANNOUNCE PLANS TO MAKE NEXGENBASED PCS 9403110077 940311 HOUSE PANEL PASSES BILL TO REQUIRE TEAMS FOR WORKPLACE SAFETY WASHINGTON THE HOUSE EDUCATION AND LABOR COMMITTEE APPROVED A BILL THAT WOULD FORCE COMPANIES WITH 11 OR MORE EMPLOYEES TO SET UP WORKERMANAGEMENT SAFETY TEAMS TO PREVENT INJURIES IN THE WORKPLACE THE BILL APPROVED 2617 ALSO WOULD INCREASE POTENTIAL CRIMINAL AND CIVIL PENALTIES AGAINST EMPLOYERS AND MANAGERS IN CASES OF SAFETY VIOLATIONS THAT RESULT IN SERIOUS INJURY OR DEATH UNDER THE LEGISLATION GOVERNMENT SAFETY INSPECTORS COULD CLOSE DOWN AN UNSAFE OPERATION IMMEDIATELY WITHOUT A COURT ORDER THE CLINTON ADMINISTRATION AND ORGANIZED LABOR STRONGLY BACK THE PLAN WHICH WOULD MARK THE FIRST MAJOR CHANGES TO THE 20YEAROLD OCCUPATIONAL HEALTH AND SAFETY ACT THE COMMITTEE VOTE WAS ALONG PARTY LINES EXCEPT FOR TWO DEMOCRATS WHO VOTED AGAINST THE LEGISLATION REPUBLICANS WITH STRONG URGING FROM THE BUSINESS COMMUNITY VEHEMENTLY OPPOSE THE BILL'S MANDATED TEAM APPROACH THIS BILL WILL NOT IMPROVE SAFETY AND HEALTH BUT IT WILL IMPOSE HUGE NEW MANDATES ON AMERICAN EMPLOYERS SAID REP WILLIAM GOODLING OF PENNSYLVANIA THE COMMITTEE'S RANKING REPUBLICAN 9403110076 940311 SOUTHWESTERN IS RENEGOTIATING CABLE VENTURE TERMS OF 49 BILLION DEAL WITH COX ARE JOLTED BY FCC RATE ROLLBACK BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWESTERN BELL CORP IS RENEGOTIATING THE FINANCIAL TERMS OF ITS 49 BILLION CABLE VENTURE WITH COX ENTERPRISES INC MAKING IT THE LATEST DEAL TO BE JOLTED BY THE NEW CABLERATE ROLLBACKS THE BABY BELL AND COX HAVE AGREED TO REWORK THE FINANCIAL TERMS TO REFLECT THE 7 RATE CUT IMPOSED LAST MONTH PROBABLY REDUCING SOUTHWESTERN BELL'S PLANNED 16 BILLION CASH OUTLAY THE CENTERPIECE OF THE DEAL WE BOTH ACKNOWLEDGE THAT THERE HAS BEEN SOME EFFECT ON VALUE OF ALL CABLE PROPERTIES SINCE THE FEDERAL COMMUNICATIONS COMMISSION ORDERED THE RATE CUTS SAID JAMES KAHAN A SENIOR VICE PRESIDENT AT SOUTHWESTERN BELL AND A CHIEF ARCHITECT OF THE DEAL THE FCC MOVE MAY PUT PRESSURE ON ALL CABLE SYSTEMS' CASH FLOW A KEY MEASURE BY WHICH SUCH SYSTEMS ARE PRICED THE FCC RULING WAS CITED BY BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC IN THE COLLAPSE OF THEIR 16 BILLIONPLUS DEAL LAST MONTH THE RATE CUTS REDUCED TCI'S EXPECTED ANNUAL CASH FLOW BY ABOUT 150 MILLION ARGUABLY REDUCING TCI'S VALUE BY MORE THAN 17 BILLION BASED ON AN ORIGINAL PRICE OF 1175 TIMES CASH FLOW IN THE CASE OF THE SAN ANTONIOBASED REGIONAL TELEPHONE COMPANY AND ATLANTABASED COX HOWEVER MR KAHAN EMPHASIZED THAT THEIR DEAL ISN'T IN ANY DANGER OF COLLAPSING HE ADDED THAT THE TWO SIDES CONTINUE TO NEGOTIATE ON GOOD TERMS A SPOKESWOMAN AT COX WOULDN'T CONFIRM THE RENEGOTIATIONS AND SAID THE DEAL IS PROCEEDING AS WE PLANNED BUT SHE CONCEDED THAT THE CABLERATE REDUCTION OBVIOUSLY ADDS A NEW WRINKLE THE BABY BELL'S MR KAHAN SAID A FINAL AGREEMENT MAY BE SIGNED SOMETIME NEXT MONTH A MONTH LATER THAN ORIGINALLY PLANNED BUT THAT THE FINAL DEAL SHOULD CLOSE ON TIME BY YEAR END THEY ARE THE RIGHT PARTNERS MR KAHAN SAID OF COX THEY ARE GOOD HONEST CORPORATE CITIZENS THE TYPES WE WANT TO BE PARTNERS WITH AMONG OTHER PENDING CABLE DEALS BELLSOUTH CORP IS NEARING COMPLETION OF ITS DEAL WITH PRIME MANAGEMENT CO OF AUSTIN TEXAS TO ACQUIRE A 225 STAKE THOUGH THE TRANSACTION HASN'T CLOSED THERE AREN'T ANY PLANS TO REWORK TERMS A BELLSOUTH SPOKESMAN SAID IT WAS REPORTED THAT BELLSOUTH PAID 100 MILLION FOR ITS STAKE BCE INC A TELECOMMUNICATIONS GIANT THAT LAST YEAR AGREED TO INVEST MORE THAN 400 MILLION FOR A 30 STAKE IN JONES INTERCABLE INC WITH AN OPTION TO EVENTUALLY BUY THE WHOLE COMPANY ALSO ANTICIPATES NO RENEGOTIATIONS A JONES SPOKESMAN SAID SOUTHWESTERN BELL AND COX HAD ANNOUNCED PLANS LAST DECEMBER TO FORM A 49 BILLION PARTNERSHIP TO PURSUE CABLE TELEPHONE AND INTERACTIVE OPPORTUNITIES IN EACH OTHER'S MARKETS COX A MEDIA COMPANY WAS TO CONTRIBUTE 21 CABLE SYSTEMS VALUED AT THE TIME AT 33 BILLION SOUTHWESTERN WAS TO HAVE CONTRIBUTED 16 BILLION IN CASH AT THE TIME THE TWO COMPANIES VALUED COX'S CABLE SYSTEMS AT 11 TIMES THEIR APPROXIMATE ANNUAL CASH FLOW OF 300 MILLION THE FCC RULING HAS THE POTENTIAL OF CUTTING COX'S CASH FLOW AS MUCH AS 12 OR ALMOST 40 MILLION ANNUALLY PEOPLE FAMILIAR WITH THE DEAL SAID IN ADDITION TO THE VALUATION QUESTION THE TWO SIDES ARE CONTINUING TO HASH OVER LEGISLATIVE REGULATORY AND FINANCIAL ISSUES THAT COULD AFFECT THE PARTNERSHIP MR KAHAN HOWEVER SAID HE DOESN'T REGRET MOVING AHEAD BEFORE THE OUTLOOK FOR CABLE REREGULATION WAS FIRM IF YOU WAITED UNTIL YOU HAD ALL THE INFORMATION YOU'D LIKE TO HAVE EVERY TIME YOU WERE DOING A DEAL YOU'D NEVER DO ANYTHING HE SAID 9403110075 940311 TECHNOLOGY REPORTED AIDS CASES AMONG HETEROSEXUALS GROWING AT FASTER RATE ATLANTA HETEROSEXUAL CONTACT CONTINUES TO ACCOUNT FOR AN INCREASING PROPORTION OF ALL NEW AIDS CASES THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID WHILE HETEROSEXUAL CONTACT ACCOUNTED FOR LESS THAN 9 OF THE 103500 REPORTED AIDS CASES IN 1993 THAT PERCENTAGE HAS JUMPED FROM 19 IN 1985 DURING THE SAME PERIOD THE PROPORTION OF CASES ATTRIBUTED TO MALETOMALE SEXUAL CONTACT DECREASED TO 466 FROM 665 THE CDC SAID THE 1993 FIGURES INCORPORATE A CHANGE IN AIDSREPORTING CRITERIA THAT BROADENS THE DEFINITION OF THE DISEASE TO INCLUDE VARIOUS CONDITIONS AMONG THOSE INFECTED WITH THE AIDSCAUSING HUMAN IMMUNODEFICIENCY VIRUS THE REPORTING CHANGE INCREASED THE OFFICIAL NUMBER OF AIDS CASES IN THE US WHICH TOTALED 49016 IN 1992 IT WAS UNCLEAR EXACTLY HOW MANY AIDS CASES WOULD HAVE BEEN REPORTED IN 1993 UNDER PRE1993 CRITERIA THE NUMBER OF AIDS CASES ATTRIBUTED TO HETEROSEXUAL CONTACT INCREASED 130 IN 1993 TO 9288 FROM 4045 IN 1992 CASES IN ALL OTHER EXPOSURE CATEGORIES INCREASED A COMBINED 109 IN 1993 NEARLY HALF THE HETEROSEXUALLY TRANSMITTED AIDS CASES WERE ACQUIRED THROUGH CONTACT WITH A PARTNER WHOSE HIV INFECTION WAS UNREPORTED OR UNKNOWN ANOTHER 423 OF THOSE CASES WERE ATTRIBUTED TO HETEROSEXUAL CONTACT WITH AN INJECTEDDRUG USER 9403110074 940311 HUNTINGTON NATIONAL TRIES ATM FEATURING VIDEO IMAGE TELLER COLUMBUS OHIO HUNTINGTON NATIONAL BANK UNVEILED WHAT SOME MIGHT CONSIDER THE ROLLSROYCE OF ATM MACHINES THE BANK'S NEW PERSONAL TOUCH VIDEO BANKING MACHINE ALLOWS CUSTOMERS TO SIT DOWN IN A CUBICLE AND TALK TO A BANKER ON A VIDEO SCREEN ANY TIME OF DAY OR NIGHT SEVEN DAYS A WEEK THE MACHINES DEVELOPED IN COOPERATION WITH AT&T GLOBAL INFORMATION SYSTEMS ALLOW CUSTOMERS TO CARRY OUT NEARLY ANY TRANSACTION PERFORMED IN A BANKING OFFICE SUCH AS OPENING ACCOUNTS CHECKING ON ACCOUNT BALANCES OR GETTING A LOAN FOR A CAR OR BOAT HUNTINGTON IS THE FIRST BANK IN NORTH AMERICA TO OFFER SUCH A SERVICE AT LEAST ONE BANK IN BRITAIN OFFERS A SIMILAR MACHINE WE'RE CONVINCED CUSTOMERS WANT TO BE ABLE TO BANK FROM THEIR POINT OF CONVENIENCE ANY TIME OF DAY OR NIGHT SAYS CYNTHIA PHILLIPS A BANK SPOKESWOMAN THE BANK HAS OPENED TWO LOCATIONS ONE IN COLUMBUS AND ONE IN DAYTON BUT THE BANK PLANS TO STUDY THE TECHNOLOGY CAREFULLY BEFORE IT COMMITS TO ANY MAJOR EXPANSIONS IN THE PROGRAM MS PHILLIPS SAYS THE COMPANY WILL EXAMINE SUCH ISSUES AS CUSTOMER PREFERENCES FOR INSTANCE IDENTIFYING THE PLACES WHERE CUSTOMERS MOST WANT TO HAVE THE MACHINES LOCATED THE UNITS ARE BUILT WITH A FROSTED GLASS CUBICLE TO ENHANCE SECURITY AND HAVE A SEPARATE ATM MACHINE FOR CUSTOMERS WHO ONLY WANT TO MAKE QUICK WITHDRAWALS OR DEPOSITS HUNTINGTON BANCSHARES INC THE HOLDING COMPANY IS AN 18 BILLION REGIONAL BANK BASED IN COLUMBUS THE COMPANY'S BANKING SUBSIDIARIES OPERATE 352 OFFICES IN EIGHT STATES 9403110073 940311 AUTOS TURNING AN OPEL INTO A CADILLAC GM GOES GLOBAL BY AUDREY CHOI AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL IF BABY BOOMERS WANT A SAFER AND MORE STYLISH CAR THAN WHAT THEIR PARENTS DROVE WHEN MIDDLEAGED GENERAL MOTORS HOPES THEY WILL FIND IT IN THE NEW OPEL OMEGA IN THE PAST DECADE GENERAL MOTORS CORP'S CADILLAC DIVISION HAS STRUGGLED TO DESIGN A CAR THAT LOOKS AND FEELS LIKE A EUROPEAN LUXURY MODEL NOW GM THINKS IT HAS THE ANSWER THE OMEGA A LUXURY CAR BUILT IN GERMANY BY GM'S OWN ADAM OPEL AG SUBSIDIARY BY 1996 GM PLANS TO SELL A VERSION OF THE OMEGA IN THE US UNDER THE CADILLAC NAME MAKING IT THE LATEST EXAMPLE OF THE US AUTO INDUSTRY'S NEW ENTHUSIASM FOR DESIGNING SOCALLED GLOBAL CARS WHICH CAN SELL AROUND THE WORLD GM'S GOALS AVOID REDUNDANT INVESTMENT IN SIMILAR MODELS FOR EUROPE AND NORTH AMERICA AND SPREAD COSTS ACROSS BIGGER INTERNATIONAL SALES VOLUMES THE CADILLAC VERSION OF THE OMEGA WILL FACE TOUGH COMPETITION IN THE STAGNANT US LUXURYCAR MARKET WHERE GM WANTS IT TO BE A LOWERCOST ANTIDOTE TO CADILLAC'S CHROMELADEN BARGE IMAGE CADILLAC'S LAST EFFORT TO PRODUCE A SMALLER CAR TO COMPETE WITH EUROPEAN MODELS LIKE THE BMW 3 SERIES RESULTED IN THE CIMARRON A DOLLEDUP CHEVROLET THAT WAS LAUGHED OFF THE MARKET MORE THAN SIX YEARS AGO DETERMINED NOT TO REPEAT THE CIMARRON FIASCO CADILLAC IS TAKING PAINS TO ENSURE THAT THIS ADDITION TO ITS LINE CURRENTLY KNOWN AS THE CADILLAC LSE BUT SOON TO BE RENAMED IS VIEWED AS A CREDIBLE ALTERNATIVE TO EUROPEAN BRANDS SAYS CADILLAC DIVISION GENERAL MANAGER JOHN GRETTENBERGER THE DIVISION WANTS THE OPEL CAR TO BRING IN A NEW TYPE OF BUYER FOR CADILLAC HE ADDS PARTICULARLY WOMEN IN THEIR MID40S WHO WANT A CAR THAT IS SMALLER THAN A TRADITIONAL CADILLAC DEVILLE AND THAT OFFERS A LIVELY FEEL OF THE ROAD WHEN PEOPLE THIS AGE LOOKING FOR A CAR THIS SIZE THINK ABOUT WHERE TO SHOP CADILLAC DOESN'T EVEN COME TO MIND SAYS JANET ECKHOFF CADILLAC'S DIRECTOR OF ADVERTISING AND MARKET PLANNING ALREADY CADILLAC IS DISCOVERING THAT A NEW TYPE OF BUYER CAN BE HARD TO PLEASE PEOPLE WHO SAW THE CADILLAC LSE AT AUTO SHOWS EARLIER THIS YEAR CRITICIZED THE STYLING OF THE CAR'S TAIL END NOW GM DESIGNERS HAVE GONE BACK TO THE DRAWING BOARD TO GIVE THE OPEL CAR'S REAR END A LOOK MORE LIKE THE CURRENT SEVILLE MODEL WE'RE NOT GOING TO TAKE ANY CHANCES SAYS MS ECKHOFF WE'RE NOT GOING TO GET A SECOND CHANCE AT THESE BUYERS AS IF THAT WEREN'T ENOUGH PRESSURE FOR CADILLAC GM'S PRESIDENT JOHN F SMITH JR HAS SEIZED ON THE OMEGA/CADILLAC PROGRAM AS A SYMBOL OF HIS PLANS TO MAKE GM'S US AND GERMAN ENGINEERING AND PRODUCTDEVELOPMENT ORGANIZATIONS FUNCTION LIKE PARTNERS INSTEAD OF RIVALS THIS CAR HAS BROAD STRATEGIC SIGNIFICANCE FOR GM WORLDWIDE MR SMITH SAID IN JANUARY WHEN HE UNVEILED A PROTOTYPE OF THE CADILLAC LSE AT THE DETROIT AUTO SHOW BY DESIGNING CARS LIKE THE OMEGA TO SELL IN MORE THAN ONE WORLD MARKET MR SMITH SAYS GM CAN PRODUCE NEW PRODUCTS AT A FRACTION OF THE INVESTMENT OF A MORE TRADITIONAL APPROACH BUT GLOBAL CARS HAVE FLOPPED BEFORE DURING THE LATE 1980S FORD MOTOR CO TRIED TO SELL ITS LARGE GERMANMADE SCORPIO SEDAN THROUGH ITS US LINCOLNMERCURY LUXURY CHANNELS BUT THE CAR CALLED THE MERKUR SCORPIO IN THE US DIDN'T CATCH ON AND FORD STOPPED IMPORTING IT IN 1989 CADILLAC IS STILL FORMULATING THE MARKETING AND PRICING STRATEGIES IT WILL USE TO AVOID REPEATING THE MERKUR MISTAKES IN EUROPE MEANWHILE OPEL OFFICIALS SAY THE OMEGA WILL COMPETE AGAINST THE MERCEDES CCLASS AND THE BMW 5SERIES SEDANS AS WELL AS JAPANESE MODELS SUCH AS THE ACURA LEGEND LEXUS ES AND GS300 SEDANS AND THE INFINITI J30 RANGING IN PRICE FROM 23000 TO 37300 FOR A LOADEDSEDAN MODEL THE NEW EUROPEAN OMEGA'S SMOOTH LINES AND ROOMY INTERIOR MARK AN ADVANCE OVER THE STODGY MODELS IT REPLACES THE NEW OMEGA WILL OFFER A CHOICE OF FIVE ENGINES AND THE CAR'S AMENITIES INCLUDE DRIVER AND PASSENGER AIR BAGS ANTILOCK BRAKES AND ANTITHEFT SYSTEMS SO FAR EUROPEAN AUTOMOTIVE CRITICS APPEAR TO AGREE THAT WHILE THE OMEGA IS A SOLID CAR IT'S NO BMW EVEN THOUGH THE NEW OMEGA OUTSCORED A RIVAL BMW IN ITS ROAD TESTS THE GERMAN MOTOR MAGAZINE MOT PRAISED THE BMW AS A CAR THAT OFFERS THE EXCITEMENT OF A LIGHTFOOTED DYNAMO RATHER THAN THE COMFORTABLE LARGESS OF THE OMEGA EVEN OPEL EXECUTIVES HARBOR FEW HOPES OF WINNING OVER BMW OR MERCEDES LOYALISTS IN EUROPE WHERE OPEL IS A MIDDLEBROW BRAND SOME CONQUEST SALES WOULD BE NICE SAYS OPEL'S CHAIRMAN DAVID HERMAN BUT THE MOST IMPORTANT THING IS KEEPING OUR CUSTOMERS THUS PRICE WILL BE A KEY SELLING POINT OPEL OFFICIALS SAY THEY EXPECT A WELLEQUIPPED OMEGA TO COST ABOUT 5800 LESS THAN A SIMILIARLY EQUIPPED BMW STILL BMW'S WILLINGNESS TO SUPPLY THE TURBODIESEL FOR THE OMEGA UNDERSCORES HOW UNCONCERNED IT IS THE THING I LIKE BEST ABOUT THE OMEGA IS THAT IT HAS OUR ENGINE JOKES BAYERISCHE MOTOREN WERKE AG'S CHAIRMAN BERND PISCHETSRIEDER BUT SERIOUSLY I THINK IT'S PRETTY CLEAR THAT FOR SOMEONE WHO BUYS AN OPEL A BMW IS OUT OF THE QUESTION AND VICE VERSA OPEL PLANS TO SELL 135000 OMEGAS IN EUROPE THIS YEAR AND 180000 IN 1995 TO SUSTAIN PROFITABLE PRODUCTION AND EMPLOMENT AT THE GERMAN FACTORY THAT WILL BUILD OMEGAS OPEL WILL BE COUNTING ON ADDITIONAL US SALES OF SOME 30000 TO 40000 UNITS A YEAR STARTING IN 1996 9403110072 940311 BUSINESS BRIEF S&L INDUSTRY'S PROFIT INCREASED 53 IN 4TH PERIOD REGULATORY AGENCY SAYS WASHINGTON SAVINGSANDLOAN ASSOCIATIONS EARNED 119 BILLION IN THE FOURTH QUARTER OF 1993 A 53 INCREASE FROM THE 777 MILLION A YEAR EARLIER THE OFFICE OF THRIFT SUPERVISION SAID CONTINUING ITS RECOVERY FROM THE FINANCIAL COLLAPSE OF THE 1980S THE INDUSTRY RECORDED ITS 12THCONSECUTIVE PROFITABLE QUARTER IN THE OCTOBERDECEMBER PERIOD OF LAST YEAR FOR ALL OF 1993 HOWEVER THRIFTS' NET INCOME EASED TO 5 BILLION FROM 51 BILLION IN 1992 THE THRIFT REGULATOR SAID IMPROVED FOURTHQUARTER EARNINGS RESULTED LARGELY FROM A CONTINUED DECLINE IN TROUBLED ASSETS SAID JONATHAN FIECHTER THE OTS'S ACTING DIRECTOR TROUBLED ASSETS DECLINED TO 17 BILLION OR 22 OF TOTAL ASSETS AT THE END OF 1993 FROM 20 BILLION OR 25 AT THE END OF THE THIRD QUARTER AND FROM 25 BILLION OR 31 AT THE END OF 1992 MANY PRIVATESECTOR S&LS ARE REDUCING THEIR TROUBLEDASSET INVENTORY AS THEIR FINANCIAL CONDITION IMPROVES OR THROUGH ACQUISITION BY A BETTERHEELED THRIFT AT THE END OF 1993 ONLY ONE THRIFT WAS CRITICALLY UNDERCAPITALIZED AND IT SINCE HAS BEEN ACQUIRED BY ANOTHER S&L THE OTS SAID THE RESOLUTION TRUST CORP THE GOVERNMENT'S THRIFTCLEANUP AGENCY TOOK OVER SEVEN FAILED S&LS IN 1993 DOWN FROM 60 IN 1992 AND A PEAK OF 319 IN 1989 THE SPREAD BETWEEN AVERAGE INTEREST RATES ON BORROWED MONEY AND RATES CHARGED FOR LOANS REMAINED RELATIVELY WIDE ALSO BOLSTERING PROFITS THE OTS SAID THE SPREAD AT THE END OF 1993 WAS 295 PERCENTAGE POINTS DOWN SLIGHTLY FROM 298 POINTS AT THE END OF THE THIRD QUARTER AND 30 POINTS AT THE END OF 1992 BUT WELL AHEAD OF NARROWER SPREADS THAT PREVAILED UNTIL LATE 1992 AT THE END OF LAST YEAR THE OTS REGULATED 1669 S&LS DOWN FROM 1871 A YEAR EARLIER THE NUMBER OF PROBLEM THRIFTS THOSE REGARDED BY REGULATORY EXAMINERS AS HAVING THE MOSTSEVERE PROBLEMS DECLINED BY MORE THAN 50 TO 101 INSTITUTIONS DURING 1993 THE OTS SAID 9403110071 940311 BUSINESS BRIEFS MORRISON KNUDSEN CORP COMPLETED A 218 MILLION CONTRACT TO MAKE 257 TRANSIT CARS FOR THE CHICAGO TRANSIT AUTHORITY NEARLY 10 MONTHS EARLIER THAN EXPECTED ESSEF CORP'S PACFAB POOL PRODUCTS UNIT COMPLETED THE ACQUISITION OF THE ASSETS OF PUREX POOL PRODUCTS A UNIT OF GREAT LAKES CHEMICAL CO LAFAYETTE IND THE PURCHASE PRICE WAS 101 MILLION WASHINGTON MUTUAL SAVINGS BANK WILL EXPAND INTO SOUTHWEST IDAHO WITH FOUR FULLSERVICE BRANCHES INCLUDING THREE INSIDE SUPERSTORES IN THE BOISE AREA ENGELHARD CORP ISELIN NJ PURCHASED THE SORBENTS AND MOVING BED CATALYSTS BUSINESSES FROM A UNIT OF SOLVAY SA BELGIUM FOR AN UNDISCLOSED PRICE CLEAR CHANNEL COMMUNICATIONS INC HAS CLOSED ITS PREVIOUSLY ANNOUNCED PURCHASE OF A RADIO STATION WAXYFM IN MIAMI FROM ACKERLEY COMMUNICATIONS INC SEATTLE FOR APPROXIMATELY 14 MILLION IN CASH 9403110069 940311 CREDIT RATINGS CHRYSLER CORP HIGHLAND PARK MICH STANDARD & POOR'S CORP PLACED CHRYSLER'S SENIOR DEBT ON REVIEW FOR A POSSIBLE UPGRADE FOLLOWING THE AUTO MAKER'S HIGHLY PROFITABLE FOURTH QUARTER THE REVIEW COMES AFTER S&P RESTORED CHRYSLER'S INVESTMENTGRADE RATING IN OCTOBER S&P SAID THE COMPANY'S WELLRECEIVED NEW PRODUCTS HAVE POSITIONED IT TO BENEFIT FROM THE RECOVERING NORTH AMERICAN VEHICLE MARKET AND IT ADDED THAT PROSPECTS ARE FAVORABLE FOR SIGNIFICANT ADDITIONAL IMPROVEMENT IN EARNINGS AND CASH FLOW OVER THE NEXT FEW YEARS S&P PLACED ON REVIEW FOR POSSIBLE UPGRADE CHRYSLER'S SENIOR DEBT ITS PREFERRED STOCK RATING AND THE SENIOR AND SUBORDINATED DEBT OF CHRYSLER FINANCIAL CORP A SUBSIDIARY CONSOLIDATED DEBT UNDER REVIEW IS 115 BILLION S&P AFFIRMED AND DIDN'T PLACE ON REVIEW THE A2 COMMERCIAL PAPER RATING OF THE COMPANY'S FINANCIAL SUBSIDIARY 9403110068 940311 INTERNATIONAL BRIEF AB VOLVO SWEDISH AUTO MAKER POSTS NARROWER PRETAX LOSS FOR '93 AB VOLVO THE SWEDISH AUTOMOTIVE GROUP REPORTED THAT ITS 1993 PRETAX LOSS NARROWED TO 264 BILLION KRONOR 3308 MILLION FROM 475 BILLION KRONOR A YEAR EARLIER THE 1993 LOSS WAS ATTRIBUTED TO THE INCLUSION OF A CHARGE OF 52 BILLION KRONOR RELATED TO THE DISSOLUTION OF THE CROSSOWNERSHIP BETWEEN VOLVO AND FRENCH AUTO MAKER RENAULT VOLVO AND RENAULT AGREED TO DISSOLVE THEIR PLANNED MERGER LAST YEAR THE LOSS WAS IN LINE WITH EXPECTATIONS SINCE VOLVO HAD ALREADY ANNOUNCED ITS INTENTION TO BOOK THE CHARGES RELATED TO RENAULT AGAINST 1993 EARNINGS VOLVO REPORTED A NET LOSS OF 347 BILLION KRONOR WIDENING FROM 332 BILLION KRONOR THE GROUP SWUNG TO AN OPERATING PROFIT OF 155 BILLION KRONOR FROM A LOSS OF 225 BILLION KRONOR WITH BOTH CAR AND TRUCK OPERATIONS SWINGING TO OPERATING PROFITS 9403110067 940311 BUSINESS BRIEF BATTLE MOUNTAIN GOLD CO COMPANY EXPECTS TO BOOST GOLD OUTPUT BY 24 IN 1994 BATTLE MOUNTAIN GOLD CO SAID IT WILL PRODUCE ABOUT 495000 OUNCES OF GOLD IN 1994 INCREASING OUTPUT BY ABOUT 24 FROM 1993 PRODUCTION OF ABOUT 400000 OUNCES THE HOUSTON MINING COMPANY WHICH HOLDS INTERESTS IN PROPERTIES IN WASHINGTON COLORADO NEVADA AND BOLIVIA SAID ITS GOLD RESERVES ROSE TO 74 MILLION OUNCES AT THE START OF 1994 FROM ABOUT 72 MILLION OUNCES AT THE FIRST OF 1993 IN A RELATED MATTER THE COMPANY SAID IT HAS RECEIVED PERMITS FOR ITS NEW REONA GOLD HEAP LEACH PROJECT WHICH IS PART OF THE MINING CONCERN'S BATTLE MOUNTAIN COMPLEX IN NEVADA THE COMPANY HAS BEGUN CONSTRUCTION OF THE PROJECT WHICH SHOULD PRODUCE ABOUT 50000 OUNCES A YEAR WHEN COMPLETE ABOUT 26000 OUNCES WILL BE PRODUCED AT REONA THIS YEAR BEGINNING IN THE THIRD QUARTER BATTLE MOUNTAIN SAID 9403110066 940311 BUSINESS BRIEF HEINEKEN NV NET OF NORMAL OPERATIONS CLIMBED BY 12 LAST YEAR HEINEKEN NV SAID PROFIT FROM NORMAL OPERATIONS WHICH EXCLUDES EXTRAORDINARY ITEMS ROSE 12 IN 1993 FROM A YEAR EARLIER BUT THE DUTCH BREWER'S NET INCOME FELL 8 LAST YEAR TO 519 MILLION GUILDERS 2707 MILLION BECAUSE OF A ONETIME GAIN IN 1992 THAT WASN'T MATCHED LAST YEAR AMSTERDAMBASED HEINEKEN SAID ITS AFTERTAX EARNINGS FROM NORMAL OPERATIONS ROSE TO 519 MILLION GUILDERS FROM THE 463 MILLION GUILDERS A YEAR EARLIER BUT INCLUDING A 101 MILLIONGUILDER GAIN ON THE SALE OF LAND IN SINGAPORE IN 1992 PROFIT SLID TO 519 MILLION GUILDERS FROM 564 MILLION GUILDERS A YEAR EARLIER SALES EDGED UP 11 LAST YEAR TO 905 BILLION GUILDERS FROM 894 BILLION GUILDERS IN 1992 DRAGGED DOWN BY LOWER BEER CONSUMPTION IN EUROPE AND NEGATIVE CURRENCY SWINGS 9403110065 940311 BUSINESS BRIEF LINCOLN FOODSERVICE PRODUCTS INC INDIANA FIRM SAYS A SUITOR IS INTERESTED IN PURCHASING IT LINCOLN FOODSERVICE PRODUCTS INC SAID IT HAS BEEN APPROACHED BY AN UNIDENTIFIED PARTY INTERESTED IN PURCHASING THE MAKER OF FOODSERVICE EQUIPMENT THE FORT WAYNE IND COMPANY WHICH SAID IT ISN'T CURRENTLY IN TALKS REGARDING THE POSSIBLE PURCHASE HAS HIRED THE INVESTMENT BANKING FIRM OF BOWLES HOLLOWELL CONNOR & CO TO ASSIST IT IN EVALUATING ITS FINANCIAL ALTERNATIVES THAT WOULD MAXIMIZE SHAREHOLDER VALUE AND PROMOTE LIQUIDITY FOR COMMON STOCKHOLDERS LINCOLN RECENTLY REPORTED EARNINGS OF 34 MILLION OR 102 A SHARE ON SALES OF 576 MILLION FOR 1993 IN NASDAQ TRADING YESTERDAY LINCOLN'S SHARES ROSE 1 TO 1350 9403110064 940311 INTERNATIONAL BRIEF ROLLSROYCE PLC COMPANY SWUNG TO A PROFIT IN 1993 FROM YEARAGO LOSS BRITISH AEROSPACE MANUFACTURER ROLLSROYCE PLC SAID IT SWUNG TO A PROFIT IN 1993 FROM A YEAREARLIER LOSS PRETAX PROFIT WAS 76 MILLION 1135 MILLION FOR 1993 A YEAR EARLIER THE COMPANY HAD A LOSS OF 184 MILLION SALES FELL SLIGHTLY TO 352 BILLION FROM 356 BILLION THE PRETAX PROFIT FIGURE WAS IN LINE WITH MARKET FORECASTS THE MARKETS IN WHICH WE OPERATE CONTINUE TO BE DIFFICULT WARNED ROLLSROYCE CHAIRMAN RALPH ROBINS OVER THE PAST YEAR HOWEVER WE HAVE MADE SUBSTANTIAL PROGRESS WITH OUR RESTRUCTURING PROGRAM WHICH WILL ENSURE THAT WE MAINTAIN A WORLD COMPETITIVE CAPABILITY OPERATING PROFIT FROM AEROSPACE OPERATIONS TOTALED 20 MILLION COMPARED WITH A LOSS OF 220 MILLION A YEAR EARLIER WHILE SALES DECLINED SLIGHTLY TO 214 BILLION FROM 214 BILLION THE FALL IN SALES REFLECTED MODERATE DECLINES IN BOTH CIVIL AND MILITARY ORDERS ROLLSROYCE SAID 9403110063 940311 BUSINESS BRIEF DELTONA CORP INABILITY TO GET FINANCING RESULTS IN CAPITAL SHORTFALL DELTONA CORP SAID IT IS EXPERIENCING A SEVERE SHORTFALL IN WORKING CAPITAL DUE TO ITS INABILITY TO OBTAIN FINANCING THE MIAMIBASED DEVELOPER OF NINE PLANNED COMMUNITIES IN FLORIDA SAID TWO OF ITS LARGEST SHAREHOLDERS WHICH ALSO ARE LENDERS INFORMED THE COMPANY THAT THEY MAY NOT BE ABLE TO PROVIDE ADDITIONAL FUNDING ONE OF THE SHAREHOLDERS SELEX INTERNATIONAL BV IN AMSTERDAM AND ITS AFFILIATES HAVE PROVIDED DELTONA WITH 54 MILLION IN LOANS AND OTHER PAYMENTS DURING THE PAST SEVERAL MONTHS DUE TO THE FUNDING PROBLEMS DELTONA SAID IT'S IN DEFAULT ON PAYMENT OBLIGATIONS TO A DIVISION OF FLORIDA LAND SALES ESCROW FUND TO ITS CORPORATEOFFICE LANDLORD AND TO LENDERS SUCH AS SELEX DELTONA DISCLOSED ITS CAPITAL SHORTFALL AFTER MARKETS CLOSED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DELTONA CLOSED AT 1125 A SHARE DOWN 25 CENTS OR 18 9403110062 940311 BUSINESS BRIEF DR PEPPER/SEVENUP COS CADBURY SCHWEPPES SAYS IT SEEKS ACCORDS WITH FIRM CADBURY SCHWEPPES PLC OF LONDON SAID IT IS PURSUING POSSIBLE MARKETING AND JOINT BOTTLING AGREEMENTS WITH DR PEPPER/SEVENUP COS IN WHICH IT HOLDS A 259 STAKE DAVID WELLINGS CHIEF EXECUTIVE OFFICER OF CADBURY THE WORLD'S THIRDLARGEST SOFTDRINK CONCERN SAID THE COMPANY ALSO IS INTERESTED IN INTRODUCING DR PEPPER IN MARKETS OUTSIDE THE US WHERE CADBURY ALREADY HAS A STRONG PRESENCE MR WELLINGS SAID THE TWO COMPANIES ARE DISCUSSING HOW THEY CAN WORK TOGETHER TO EXPLOIT SYNERGIES CLEARLY THERE'S VALUE IN OUR WORKING TOGETHER HE SAID MR WELLINGS ALSO SAID CADBURY CONTINUES TO SEEK REPRESENTATION ON DR PEPPER'S BOARD A SPOKESMAN FOR DR PEPPER HOWEVER SAID IN DALLAS THAT THE COMPANIES HAVE NO DISCUSSIONS CURRENTLY UNDER WAY AND THAT OTHERWISE WE AREN'T IN A POSITION TO COMMENT ON WHAT THEY'RE DOING OR SAYING 9403110060 940311 MARKETING BRIEF PARAMOUNT COMMUNICATIONS INC PUBLISHING UNIT IN PACT WITH JAPAN'S IMPRESS GROUP PARAMOUNT PUBLISHING IN NEW YORK SAID IT REACHED A COPUBLISHING AGREEMENT WITH THE IMPRESS GROUP A JAPANESE COMPUTER BOOK AND MAGAZINE PUBLISHER TO TRANSLATE PRENTICE HALL COMPUTER PUBLISHING TITLES FOR THE JAPANESE MARKET UNDER THE AGREEMENT PARAMOUNT'S PRENTICE HALL JAPAN UNIT AND IMPRESS WILL SHARE DEVELOPMENT AND PRODUCTION COSTS AS WELL AS PROFITS FOR THE TRANSLATED TITLES IMPRESS WILL BE RESPONSIBLE FOR THE TRANSLATION SALES MARKETING AND DISTRIBUTION WHILE PARAMOUNT PUBLISHING INTERNATIONAL WILL RETAIN ALL COPYRIGHTS THE BOOKS WILL BE PUBLISHED UNDER THE JOINT IMPRINTS IMPRESS/PRENTICE HALL MDN/PRENTICE HALL RITTOR MUSIC/PRENTICE HALL AND IA PUBLISHING/PRENTICE HALL PARAMOUNT PUBLISHING IS A DIVISION OF PARAMOUNT COMMUNICATIONS INC WHICH IS BEING ACQUIRED BY VIACOM INC 9403110059 940311 LETTERS TO THE EDITOR AN ESTEEMED TEXTBOOK UNFAIRLY CARICATURED THE WORLD OF HIGHSCHOOL TEXTBOOK PUBLISHING NEEDS INFORMED AND THOUGHTFUL CRITICISM BUT MR SEWALL'S IDEOLOGICALLY DRIVEN BROADSIDE IS AMAZINGLY OFFBASE PREDICTABLY INVOKING THE TRENDY SCARE WORDS DUMBING DOWN MULTICULTURALISM PRESSURE GROUPS HE PRESENTS A GROTESQUELY DISTORTED CARICATURE OF A CAREFULLY PLANNED METICULOUSLY EDITED WORK THIS NEW EDITION OF A HIGHLY ESTEEMED AND MUCHLOVED TEXTBOOK PRESERVES THE STRENGTHS OF THE ORIGINAL WHILE INCORPORATING THE BEST OF RECENT SCHOLARSHIP AND RESPONDING TO THE PROFOUND DEMOGRAPHIC SOCIAL AND CULTURAL CHANGES THAT HAVE TRANSFORMED MODERN AMERICA APPARENTLY WHILE MR SEWALL WAS OTHERWISE ENGAGED THE PRIMARY DOCUMENTS GEOGRAPHICAL EMPHASIS AND IMAGINATIVE STUDY AIDS ARE ALL ENORMOUSLY USEFUL THE VISUALLY ATTRACTIVE FORMAT INCREASES THE ODDS THAT THE BOOK WILL ACTUALLY BE READ THE BOOK EMPHASIZES CHRONOLOGY AND NARRATIVE AND OFFERS SOLID POLITICAL DIPLOMATIC AND MILITARY COVERAGE TODD AND CURTI'S WAS DESIGNED TO PRESENT A CLEAR AND READABLE ACCOUNT OF US HISTORY FROM THE EARLIEST BEGINNINGS TO THE PRESENT AND IT SUCCEEDS IN THAT GOAL IN COLLABORATION WITH THE SUPERB AND EXPERIENCED EDITORIAL STAFF AT HOLT RINEHART & WINSTON I WAS INTIMATELY AND CONTINUOUSLY ENGAGED IN THIS PROJECT FROM THE EARLIEST DRAFTS TO A CLOSE READING OF THE FINAL TEXT THE HISTORIANS AND TEACHERS LISTED AT THE BEGINNING ALL WROTE CAREFUL AND VERY HELPFUL CRITIQUES OF CHAPTERS I AM HONORED TO BE ASSOCIATED WITH A CLASSIC TEXTBOOK FIRST WRITTEN MORE THAN 40 YEARS AGO BY MY GOOD FRIEND AND DISTINGUISHED SENIOR COLLEAGUE MERLE CURTI 9403110058 940311 ENTERPRISE SBA IS ROLLING OUT REVOLVING LOANS TO SMALL COMPANIES CAPITALHUNGRY FIRMS CAN DRAW ON CREDIT LINES FOR RECEIVABLES INVENTORY BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL UNCLE SAM IS OPENING THE LENDING SPIGOT WIDER FOR SMALL BUSINESSES WITHIN THE NEXT 30 DAYS THE US SMALL BUSINESS ADMINISTRATION PLANS A NATIONWIDE ROLLOUT OF A REVOLVINGLOAN GUARANTEE PROGRAM EXPECTED TO GENERATE 1 BILLION OF SMALLBUSINESS FINANCING DURING ITS FIRST YEAR THE NEW GREENLINE PROGRAM COULD GREATLY EXPAND THE USE OF A HIGHLY FLEXIBLE FINANCING TOOL BY CAPITALHUNGRY SMALL BUSINESSES REVOLVING LOANS PERMIT COMPANIES TO DRAW ON A CREDIT LINE ONLY WHEN THEY NEED MONEY TO FUND INCREASES IN RECEIVABLES AND INVENTORY TERM LOANS WHICH THE SBA HAS TRADITIONALLY GUARANTEED LOCK A BORROWER INTO FIXED MONTHLY PAYMENTS BUT THE SBA WILL TAKE UNPRECEDENTED STEPS TO PROTECT ITSELF AGAINST REPAYMENT PROBLEMS IN ITS NEW PROGRAM BECAUSE REVOLVING LOANS ARE RISKIER THAN TERM LOANS AGENCY OFFICIALS SAY FOR THE FIRST TIME THE AGENCY WILL LET THIRD PARTIES MONITOR THE COLLATERAL THAT SECURES THE NEWLY GUARANTEED LOANS THE GREENLINE PROGRAM A REVAMPED VERSION OF TWO TROUBLED REGIONAL PILOT PROJECTS BEGUN IN 1992 WILL GUARANTEE REVOLVING CREDIT LINES OF AS MUCH AS 750000 A LOAN THE SBA GUARANTEE WILL LAST AS LONG AS FIVE YEARS AND COVER 75 OF A LOAN WHICH WOULD BEAR AN INTEREST RATE OF AS MUCH AS 275 PERCENTAGE POINTS ABOVE THE PRIME RATE OBSERVERS SEE THE NEW REVOLVINGLOAN GUARANTEE PROGRAM AND THE PRIVATE SECTOR'S UNUSUALLY HEAVY ROLE IN DEVELOPING IT AS THE LATEST EVIDENCE OF SBA ADMINISTRATOR ERSKINE BOWLES'S EFFORTS TO IMPROVE THE LONGCRITICIZED FEDERAL AGENCY THE PROGRAM DEFINITELY REFLECTS A NEW PROACTIVE SBA SAYS WILLIAM BURKE A VICE PRESIDENT OF A FLORIDA BANKING UNIT OF FIRST UNION CORP A BIG BANKHOLDING COMPANY IN CHARLOTTE NC MR BURKE SERVED ON A SPECIAL 12PERSON PANEL THAT ADVISED THE AGENCY ABOUT ORGANIZING THE NEW PROGRAM ADDS JIM MAYER PRESIDENT OF DIVERSICORP INC A COLLATERALMANAGEMENT CONCERN IN DALLAS AND AN SBA ADVISER I WAS STARTLED BY THE SBA'S CANDOR AND GENUINE INTEREST IN WHAT WE KNEW WHAT WE COULD OFFER AND HOW IT COULD BE DONE REVOLVING LOANS POSE MORE RISKS THAN TERM LOANS BECAUSE THEY ARE SECURED BY RECEIVABLES AND INVENTORY WHICH ARE LESS RELIABLE COLLATERAL THAN THE REAL ESTATE BUILDINGS AND MACHINERY THAT TYPICALLY SECURE TERM LOANS SMALL BUSINESSES FIND THEY OFTEN CAN'T GET OR AFFORD REVOLVING LOANS WE RECEIVED MORE REQUESTS FOR THIS TYPE OF LENDING BOTH FROM THE SMALLBUSINESS COMMUNITY AND OUR LENDING PARTNERS THAN ANY OTHER PROGRAM DURING SEVEN TOWN MEETINGS ACROSS THE COUNTRY LAST YEAR ABOUT THE SBA'S LOANGUARANTEE EFFORTS SBA DEPUTY ADMINISTRATOR CASSANDRA PULLEY TOLD THE SENATE SMALL BUSINESS COMMITTEE LAST WEEK ANTHONY WILKINSON PRESIDENT OF THE 600MEMBER NATIONAL ASSOCIATION OF GOVERNMENT GUARANTEED LENDERS WHICH ACCOUNTS FOR 70 OF ALL SBAGUARANTEED LOANS TESTIFIED AT THE SAME HEARING MANY SECTORS OF THE SMALLBUSINESS MARKET REMAIN STARVED FOR CAPITAL AND THESE INITIATIVES SUCH AS GREENLINE ADDRESS MANY SPECIFIC AREAS OF NEED JOYCE PRINCE PRESIDENT AND FOUNDER OF FROG POND KIDS INC AN ATLANTA APPAREL MAKER WITH 4 MILLION IN ANNUAL REVENUE SAYS THAT THE NEW GUARANTEE PROGRAM COULD HAVE HELPED HER TO BETTER FINANCE HER SMALL COMPANY'S RECENT EXPANSION SUNTRUST BANKS INC HER FIRM'S BANK FOR 22 YEARS REJECTED HER REQUEST LAST YEAR TO INCREASE FROG POND'S REVOLVING CREDIT LINE TO 350000 FROM 250000 ACCORDING TO MS PRINCE SHE SAYS SHE NEEDED THE MONEY TO FUND INVENTORY AND RECEIVABLES GROWTH FOR A CHAIN OF RETAIL STORES THAT SHE HAD OPENED IN ATLANTA AND BOSTON THE BANK TOLD ME WE'RE NOT DOING RETAILINDUSTRY LOANS RIGHT NOW' SHE RECALLS SUNTRUST BASED IN ATLANTA DECLINES TO COMMENT MS PRINCE SAYS SHE SWITCHED TO ATLANTA'S FIDELITY SOUTHERN CORP AND TOOK OUT A 750000 TERM LOAN THAT PARTLY REFINANCED A BUILDING SHE OWNED SHE SAYS SHE IS USING SOME OF THE LOAN TO FUND WORKING CAPITAL BUT MS PRINCE SAYS THE FINANCING'S INFLEXIBILITY MEANS THAT SOMETIMES SHE HAS 200000 BORROWED AT ONE PERCENTAGE POINT OVER THE PRIME RATE SITTING IN THE BANK AND EARNING SCANT INTEREST IN A 30DAY CERTIFICATE OF DEPOSIT WORSE SHE SAYS AS SHE REPAYS THE LOAN OVER FIVE YEARS FROG POND MAY AGAIN FACE A FINANCING SHORTFALL SOME LENDERS AREN'T ENTHUSIASTIC ABOUT THE NEW SBA PROGRAM HOWEVER THERE IS NO SECONDARY MARKET FOR REVOLVING LOANS THUS BANKS WON'T BE ABLE TO SELL THE GUARANTEED PORTION OF THE REVOLVING CREDIT LINE WHILE STILL SERVICING IT FOR A FEE THEY NOW CAN DO THAT WITH SBABACKED TERM LOANS AND THE LESSPERMANENT NATURE OF A REVOLVING CREDIT LINE'S COLLATERAL MAKES IT RISKIER TO SECURE SUCH DEBT SBA LENDERS WILL NEED TO BE MORE CAREFUL ABOUT MONITORING THESE LOANS SAYS BETTY VAUGHN A VICE PRESIDENT AT ACTION CAPITAL CORP AN ATLANTA COMMERCIALFINANCE CONCERN AND SBA ADVISER IF THEY DON'T THEY'RE SETTING THEMSELVES AND THE SBA UP FOR LOSSES THAT'S WHY THE AGENCY HAS AUTHORIZED LENDERS TO USE FIRMS THAT SPECIALIZE IN MANAGING LOANS' COLLATERAL THEIR METHODS INCLUDE EMPLOYING AGENTS WHO WATCH OVER INVENTORY THAT SECURES THE DEBT SOMETIMES RELEASING IT TO A DEBTOR ONLY AFTER A CREDITOR RECEIVES ITS PAYMENT MR MAYER OF THE COLLATERALMANAGEMENT CONCERN SAYS THE AGENCY'S WILLINGNESS TO USE FIRMS SUCH AS HIS REFLECTS ITS INCREASED DESIRE TO INVOLVE THE PRIVATE SECTOR MORE EXTENSIVELY 9403110057 940311 INTERNATIONAL AIR FRANCE CHAIRMAN INCLUDES 13 JOBS CUT IN RESTRUCTURING PLAN PARIS AFTER FOUR MONTHS OF SILENCE AIR FRANCE CHAIRMAN CHRISTIAN BLANC PUT FORWARD A RESTRUCTURING PLAN THAT CALLS FOR SUBSIDIES OF 20 BILLION FRENCH FRANCS 345 BILLION AND A 13 CUT IN EMPLOYMENT MR BLANC WHO TOOK THE CONTROLS AT THE AIRLINE IN OCTOBER DIDN'T STOP THERE HIS GREATLY ANTICIPATED PLAN WOULD ALSO FREEZE SALARIES UNTIL 1996 REDUCE THE NUMBER OF PLANES IN AIR FRANCE'S FLEET AND OVERHAUL THE ORGANIZATION OF THE COMPANY AT THE POINT WHERE WE ARE IT MUST BE SAID THAT WE RISK DYING WITHOUT KNOWING IT MR BLANC TOLD JOURNALISTS OVER A LUNCH IN PARIS HE TALKED IN ALMOST MOURNFUL TONES ABOUT THE AIRLINE NOTING THAT ITS 1993 LOSS EXCEEDED 75 BILLION FRANCS AND ITS DEBT STANDS AT ABOUT 375 BILLION FRANCS THE SUCCESS OF HIS BLUEPRINT FOR CHANGE NOW RESTS WITH THE WORKERS AND THE EUROPEAN UNION COMMISSION IN BRUSSELS IMMEDIATELY AFTER HIS LUNCHEON WITH THE MEDIA MR BLANC HOSTED A MEETING WITH THE 14 UNIONS REPRESENTING AIR FRANCE'S 40000STRONG WORK FORCE THEIR ACCEPTANCE OF THE PLAN IS FAR FROM CERTAIN ALREADY THE LEADER OF ONE MAJOR UNION BLASTED THE PLAN IN COMMENTS TO THE FRENCH MEDIA AND CHARGED THE GOVERNMENT WITH BLACKMAIL FOR PROMISING TO PROVIDE FRESH CASH ONLY AFTER UNIONS GIVE THEIR CONSENT THE PILOTS' UNION MEANWHILE SAID THAT WHILE IT ACCEPTS THE PLAN IN PRINCIPLE IT IS CONCERNED ABOUT PROPOSED SCHEDULE CHANGES AND THE FLEET STRUCTURE 9403110056 940311 BUSINESS BRIEF SOVEREIGN BANCORP INC PURCHASE OF SHADOW LAWN IS PLANNED FOR 746 MILLION SOVEREIGN BANCORP INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE ROCHESTER COMMUNITY SAVINGS BANK'S SHADOW LAWN SAVINGS BANK FOR 746 MILLION IN CASH SHADOW LAWN BASED IN WEST LONG BRANCH NJ HAS 17 OFFICES IN MONMOUTH AND OCEAN COUNTIES IN NEW JERSEY IT WILL BE COMBINED WITH THE SOVEREIGN BANK OF NEW JERSEY DIVISION SOVEREIGN BANCORP WITH ABOUT 45 BILLION IN ASSETS IS BASED IN WYOMISSING PA AND HAS 81 COMMUNITY BANKING AND LOAN OFFICES IN EASTERN PENNSYLVANIA AND CENTRAL NEW JERSEY ROCHESTER COMMUNITY IS A 42 BILLION SAVINGS BANK BASED IN ROCHESTER NY THE ACQUISITION IS EXPECTED TO CLOSE THIS SUMMER SUBJECT TO REGULATORY APPROVALS 9403110055 940311 CORRECTIONS & AMPLIFICATIONS SHAW INDUSTRIES INC A CARPET COMPANY HAD EARNINGS OF ROUGHLY 12 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER LAST YEAR AFTER ADJUSTMENT FOR A 2FOR1 STOCK SPLIT PAID IN DECEMBER IN YESTERDAY'S ABREAST OF THE MARKET COLUMN THE FIGURE WAS INCORRECTLY REPORTED AS 23 CENTS WHICH DOESN'T TAKE INTO ACCOUNT THE STOCK SPLIT HERITAGE MEDIA CORP'S TWO BIGGEST SHAREHOLDERS FILED PLANS TO SELL THEIR COMBINED 23 STAKE IN A PUBLIC OFFERING THAT COULD TOTAL MORE THAN 70 MILLION AN ARTICLE YESTERDAY INCORRECTLY VALUED THE OFFERING AT MORE THAN 300 MILLION 9403110054 940311 ECONOMY REGULATORS SEEK MORE BANK DATA ON DERIVATIVES PANEL'S PROPOSAL IS SEEKING TO BETTER MONITOR RISK RETURN FROM ACTIVITIES BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL BANKING REGULATORS HOPING TO BETTER MONITOR BANKS' ACTIVITIES IN DERIVATIVES PLAN TO FORCE BANKS TO DISCLOSE MORE INFORMATION ABOUT THEIR DEALINGS IN THE BOOMING BUT LITTLEUNDERSTOOD MARKET A COMMITTEE OF BANK REGULATORS PROPOSED IN THE FEDERAL REGISTER THE OFFICIAL BULLETIN OF FEDERAL RULEMAKING THAT BANKS DISCLOSE ON A QUARTERLY BASIS BOTH THEIR INCOME FROM THESE BUSINESSES AND THE AMOUNT OF MONEY THEY WOULD STAND TO LOSE IF THEIR DERIVATIVE HOLDINGS WERE TO DEFAULT DERIVATIVES ARE FINANCIAL ARRANGEMENTS BETWEEN DEALERS AND BIG INVESTORS WHOSE VALUES ARE LINKED TO OR DERIVE FROM FLUCTUATIONS IN THE PRICES OF STOCKS BONDS CURRENCIES OR OTHER ASSETS A MAIN RISK IN THESE ARRANGEMENTS IS THAT THE PARTY ON THE OTHER SIDE OF THE DEAL FAILS TO MAKE GOOD ON ITS COMMITMENTS NO MAJOR DEALERS CURRENTLY REPORT INCOME FROM DERIVATIVES ACTIVITIES ALTHOUGH BIG BANKS DO REPORT THE DOLLAR AMOUNT AT RISK FROM POTENTIAL DEFAULTS ON AN ANNUAL BASIS THE PROPOSED DISCLOSURE RULES WHICH WILL BE OPEN TO PUBLIC COMMENT BEFORE BEING IMPLEMENTED BY BANKING REGULATORS WILL SHED NEW LIGHT ON THE RETURNS AND RISKS FROM DERIVATIVES ANALYSTS SAY LATE LAST YEAR BANKING REGULATORS ISSUED GUIDELINES ON ACCEPTABLE RISKMANAGEMENT PRACTICES AT FINANCIAL INSTITUTIONS THAT DEAL IN DERIVATIVES THE GUIDELINES WERE INTENDED FOR BOTH BANKS AND BANK EXAMINERS BUT THE PROPOSED DISCLOSURE STANDARDS REPRESENT AN ADDITIONAL ARROW IN THE EXAMINERS' QUIVER TO EVALUATE BANKS' DERIVATIVES DEALINGS SAID PAUL GOTTLIEB A PARTNER SPECIALIZING IN DERIVATIVES AT SEWARD & KISSEL IT COULD ALSO POTENTIALLY BE UTILIZED AS AN EARLY WARNING MECHANISM TO IDENTIFY FINANCIAL INSTITUTIONS THAT REQUIRE CLOSER REVIEW BY BANK SUPERVISORS THE MOVES COME AS BANKS ARE FEELING PRESSURE FROM THE ACCOUNTING INDUSTRY INVESTORS AND OTHERS TO IMPROVE THE PUBLIC INFORMATION AVAILABLE ON THE SIZE OF THEIR DERIVATIVES POSITIONS AND THE RISKS THEY ENTAIL I THINK THERE'S BROAD AGREEMENT THAT EXISTING DISCLOSURES ARE INADEQUATE FEDERAL RESERVE BOARD GOVERNOR SUSAN PHILLIPS SAID IN A RECENT SPEECH GOVERNOR PHILLIPS SAID THE WIDELY ACCLAIMED GROUP OF 30 REPORT WRITTEN BY THE INDUSTRY'S TOP PRACTITIONERS AND ACADEMICS FELL SHORT ON THE DISCLOSURE ISSUE SHE CALLED THE INDUSTRY'S FEARS THAT MORE DISCLOSURE WOULD HELP COMPETITORS OVERSTATED AND SAID THAT WITHOUT ADDITIONAL DISCLOSURE I FEAR THAT INSTITUTIONS WITH SUBSTANTIAL DERIVATIVES ACTIVITIES WILL CONTINUE TO BE PLAGUED BY HIGHLY EXAGGERATED VIEWS OF THE RISKS OF SUCH ACTIVITIES THE NEW PROPOSALS COME AT A TIME WHEN CONGRESS IS PREPARING TO REVIEW CURRENT REGULATION OF DERIVATIVES MR GOTTLIEB SAID THE PROPOSED RULE CHANGES COULD SHOW CONGRESS THAT REGULATORS ARE ALREADY ON TOP OF THE ISSUE THE INDUSTRY RESPONDED COOLLY TO THE PROPOSAL ESPECIALLY RELATING TO THE DISCLOSURE OF INCOME JOSEPH BAUMAN HEAD OF BUSINESS DEVELOPMENT AT CITIBANK AND CHAIRMAN OF THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION SAID SOME DATA REQUESTED ARE BEING DISCLOSED VOLUNTARILY BY LARGE BANKS SUCH AS CITICORP ALBEIT ON AN ANNUAL BASIS RATHER THAN QUARTERLY BUT HE SAID THAT THE INCOMERELATED INFORMATION WOULD BE OF LIMITED VALUE BECAUSE OF POTENTIAL DIFFERENCES ACROSS INSTITUTIONS OF HOW TO MEASURE PROFITABILITY MY CONCERN IS THAT THE INCOMESTATEMENT DATA MIGHT NOT SHOW A PICTURE THAT WOULD ALLOW THE ANALYSTS' COMMUNITY AND OTHER INTERESTED PARTIES TO PROPERLY WEIGHT THE MEANING OF THE NUMBER HE SAID MOST OF THE NEW DISCLOSURE STANDARDS ARE SLATED TO GO INTO EFFECT IN THE THIRD QUARTER OF 1994 THE MOST DEBATABLE ITEM THE DISCLOSURE OF BANKS' DERIVATIVERELATED PROFITS WOULDN'T BE IMPLEMENTED UNTIL THE FIRST QUARTER OF 1995 FOR INTERESTRATE AND FOREIGN EXCHANGERELATED DERIVATIVES REGULATORS ALREADY REQUIRE BANKS TO DISCLOSE THEIR NOTIONAL VALUES OR THE AMOUNT OF UNDERLYING CURRENCY OR BOND INSTRUMENTS ON WHICH THE DERIVATIVES' RETURNS ARE CALCULATED HOWEVER THE PROPOSED RULE CHANGES WOULD INCLUDE EQUITY AND COMMODITY DERIVATIVES THEY WOULD ALSO REQUIRE THAT BANKS SEPARATE EXCHANGETRADED DERIVATIVES SUCH AS FUTURES WITH PRIVATELY TRADED CONTRACTS IN ADDITION BANKS WOULD BE REQUIRED TO REPORT A SINGLE FIGURE FOR THE MAXIMUM LOSSES A BANK COULD TAKE FROM ALL OF ITS DERIVATIVES POSITIONS THE PROPOSED REPORTING REQUIREMENTS GIVE US THE KIND OF INFORMATION WE FEEL WE NEED TO APPROPRIATELY SUPERVISE BANKS' DERIVATIVES ACTIVITIES SAID DOUGLAS HARRIS SENIOR POLICY ADVISER AT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WE THINK A LOT OF BANKS HAVE THE INFORMATION READILY AT HAND THE PROPOSED RULES WOULDN'T JUST APPLY TO BIG DERIVATIVES DEALERS REGULATORS WANT ALL BANKS WITH ASSETS IN EXCESS OF 100 MILLION TO ABIDE BY THE NEW RULES THAT WOULD INCLUDE ALMOST ALL BANKS THAT USE DERIVATIVES EVEN THOSE THAT MERELY USE THEM TO REDUCE RISKS FROM FLUCTUATING INTEREST RATES ASIDE FROM BANC ONE CORP FEW BANKS THAT USE DERIVATIVES TO HEDGE HAVE BROKEN OUT HOW THESE INSTRUMENTS AFFECT THEIR BOTTOM LINE 9403110053 940311 INDUSTRY FOCUS BANKS BRACING FOR THE REMOVAL OF INTERSTATE BARRIERS BILL MOVES AHEAD IN CONGRESS MERGERS ARE LIKELY TO PICK UP SPEED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN NATIONWIDE BRANCH BANKING IS AN ACCOMPLISHED FACT AMERICA WILL HAVE COME OF AGE FINANCIALLY THAT SENTIMENT COULD BE ATTRIBUTED TO ALMOST ANY BIGBANK EXECUTIVE THESE DAYS IN FACT IT WAS SPOKEN IN 1935 BY AP GIANNINI THE FOUNDER AND ARCHITECT OF BANK OF AMERICA THE BANKING INDUSTRY HAS WAITED A LONG TIME FOR NATIONWIDE BANKING AFTER YEARS OF LOBBYING CONGRESS IS POISED TO LIFT THE COSTLY AND CUMBERSOME BARRIERS IMPOSED BY THE 1927 MCFADDEN ACT EARLIER THIS WEEK THE HOUSE BANKING COMMITTEE APPROVED AN INTERSTATEBANKING MEASURE ALLOWING BANKS TO SET UP BRANCHES IN OTHER STATES THREE YEARS AFTER THE BILL IS PASSED WITHOUT THE COSTLY PROCESS OF RETAINING SEPARATE BANKING COMPANIES A SIMILAR BILL WAS APPROVED TWO WEEKS AGO BY THE SENATE BANKING COMMITTEE AND A FINAL BILL COULD REACH THE FULL CONGRESS BY THE AUGUST RECESS ALTHOUGH THE INDUSTRY ALREADY HAS BEEN CONSOLIDATING IN RECENT YEARS THE LIFTING OF ALL INTERSTATE BARRIERS LIKELY WILL ESCALATE THE PACE OF BANK MERGERS AND CHANGE HOW BANKS DO BUSINESS IT COULD OPEN UP A WHOLE SLEW OF ACQUISITION ACTIVITIES SAYS RICHARD ZONA VICE CHAIRMAN OF FIRST BANK SYSTEM INC COMPETITION AMONG REGIONAL GIANTS SUCH AS NATIONSBANK CORP AND BANC ONE CORP IS LIKELY TO HEAT UP AS THEY INVADE EACH OTHER'S TURF MANY SMALL AND MEDIUMSIZED BANKS PROBABLY WILL BE SWALLOWED UP MEANWHILE THE BIG MONEYCENTER BANKS IN NEW YORK WILL BE RELATIVELY MINOR PLAYERS AS THEY FOCUS ON BUSINESSES SUCH AS CREDITCARDS THAT AREN'T DEPENDENT UPON BRANCH NETWORKS THE SOCALLED SUPERREGIONALS ARE PROBABLY THE BEST POSITIONED TO TAKE ADVANTAGE OF THE NEW ERA IN BANKING NATIONSBANK BASED IN CHARLOTTE NC HAS BEEN EXPANDING RAPIDLY IN ITS HOME BASE IN THE SOUTHEAST AND IS EAGER TO MOVE INTO THE MIDWEST ONE POSSIBLE ACQUISITION OR MERGER TARGET IS FIRST CHICAGO CORP THE REGION'S BIGGEST BANK A POTENTIAL BIG RIVAL IS COLUMBUSBASED BANC ONE WHICH HAS BECOME A GIANT IN THE MIDWEST AND WANTS TO MOVE INTO NATIONSBANK'S TURF IN THE SOUTHEAST MEANWHILE SAN FRANCISCOBASED BANKAMERICA CORP WHICH RECENTLY AGREED TO BUY CHICAGO'S CONTINENTAL BANK CORP IS WIDELY EXPECTED TO EXPAND FARTHER EAST OTHER BANKS ARE LIKELY TO WORK OUT MERGERS WITH SIMILARSIZED INSTITUTIONS PROVIDENCE RIBASED FLEET FINANCIAL GROUP INC FOR ONE IS ALREADY NEW ENGLAND'S BIGGEST BANK AND IS INTERESTED IN EXPANDING TO THE MIDDLE ATLANTIC AND PARTS OF THE SOUTHEAST IT COULD MAKE AN ATTRACTIVE PARTNER WITH NEW JERSEY'S FIRST FIDELITY BANCORP WHOSE BRANCHES STRETCH FROM CONNECTICUT TO PENNSYLVANIA ALTHOUGH THEY BOTH ARE RUN BY TWO STRONGWILLED CHIEF EXECUTIVES NONE OF THESE BANKS ARE COMMENTING ON THEIR PLANS BUT THEY CLEARLY ARE CONSIDERING THEIR OPTIONS YOU HAVE DISCUSSIONS AND HOPE THAT SOMEDAY THEY MAY MATERIALIZE INTO SOMETHING SAYS WILLIAM BOARDMAN SENIOR EXECUTIVE VICE PRESIDENT AT BANC ONE IRONICALLY THE MONEYCENTER BANKS WHICH WERE THE EARLIEST PROPONENTS OF INTERSTATE BANKING IN THE 1980S NOW ARE PRIMARILY ON THE SIDELINES NONE OF THEM WERE ABLE TO COBBLE TOGETHER REGIONAL STRENGTHS OUTSIDE THE NORTHEAST AND THEIR CREDITCARD BUSINESS ALREADY IS ON A NATIONAL SCALE AND DOESN'T NEED BRANCH NETWORKS TO OPERATE MANY MONEYCENTER BANKS IN FACT HAVE BEEN SHEDDING OPERATIONS TO REDUCE COSTS LAST YEAR FOR INSTANCE CITICORP SOLD ITS ARIZONA BANK TO NORWEST CORP AND CHASE MANHATTAN CORP SOLD ITS ARIZONA BANK TO FIRST INTERSTATE BANCORP NOT THAT THEY WON'T BE REGIONAL PLAYERS CHASE AND BANK OF NEW YORK CO FOR INSTANCE HAVE BEEN BUILDING UP THEIR PRESENCE IN THE AFFLUENT SUBURBS OF NEW YORK AND ARE EXPECTED TO CONTINUE BUILDING IN STATES SUCH AS CONNECTICUT AND NEW JERSEY OF COURSE THE BANKING INDUSTRY ALREADY WAS MOVING TOWARD CONSOLIDATION EVEN BEFORE INTERSTATE BANKING SEEMED LIKELY FACED WITH WEAK DEMAND FOR BANK CREDIT AND OTHER TRADITIONAL SERVICES BANKS HAVE BEEN MERGING OR ACQUIRING ONE ANOTHER TO DRIVE DOWN COSTS AND SPREAD THEIR PRODUCTS ACROSS A WIDER CUSTOMER BASE THE NEW LAW WILL ONLY SPEED THE PROCESS BESIDES LIFTING FEDERAL BARRIERS THE BILL WOULD EFFECTIVELY END THE RESTRICTIONS THAT 16 OR SO STATES AND REGIONS SUCH AS THE SOUTHEAST HAVE SET UP TO KEEP OUT BANKS FROM OTHER AREAS A LOT OF CLIENTS ON BOTH SIDES OF THE MASONDIXON LINE ARE EXAMINING THEIR NEW OPPORTUNITIES SAYS CHRISTOPHER FLOWERS A PARTNER AT GOLDMAN SACHS & CO ALREADY SOME STATES SUCH AS VIRGINIA GEORGIA FLORIDA AND MINNESOTA ARE CHANGING THEIR LAWS TO ALLOW INTERSTATE BANKING THAT COULD ATTRACT WOULDBE SUITORS FOR VIRGINIA'S SIGNET BANKING CORP GEORGIA'S BANK SOUTH CORP AND FLORIDA'S BARNETT BANKS INC ALL THREE HAVE SAID THEY WANT TO REMAIN INDEPENDENT BUT THEY MAY FIND IT HARDER TO DO SO STILL DELAYING AS LONG AS POSSIBLE COULD AT LEAST GIVE THEM GREATER FLEXIBILITY IN CHOOSING A BUYER ONE COULD SEE VIRGINIA FOR THE FIRST TIME SINCE 1861 AS A BATTLEGROUND SAID H RODGIN COHEN BANKING ATTORNEY AT SULLIVAN & CROMWELL ASIDE FROM THE PROSPECTS OF FULL INTERSTATE BANKING THE BILL WOULD HELP BANKS RUN THEIR FARFLUNG OPERATIONS MORE EFFICIENTLY UNDER CURRENT LAW BANKS CAN PURCHASE OUTOFSTATE INSTITUTIONS IF THE TARGET'S STATE ALLOWS BUT THE BUYER HAS TO MAINTAIN SEPARATE BANKING COMPANIES THAT MEANS SEPARATE BOARDS AND OTHER EXCESSIVE RED TAPE SUCH AS REQUIRING EACH BANK TO FILE REGULATORY PAPERS AND REVIEWING EACH BANK SEPARATELY BY BANK REGULATORS IT ALSO MEANS CONSUMERS CAN'T DO MUCH IN THE WAY OF INTERSTATE BANKING EXCEPT USE AN AUTOMATIC TELLER MACHINE BECAUSE THE BILL WILL ALLEVIATE MUCH OF THAT IT SHOULD HELP THE BANK'S REVENUE SAYS MR KOVACEVICH OF NORWEST CUSTOMERS WHO WORK OR TRAVEL ACROSS STATE LINES ARE MORE LIKELY TO USE THE BANK IF THE BILL PASSES BECAUSE BANKING WOULD BE MUCH EASIER THERE ARE BELIEVED TO BE 60 MILLION CONSUMERS WHO LIVE IN CITIES NEAR STATE BORDERS I THINK THE BENEFITS ARE NOT AS MUCH ON THE COST SIDE AS WHAT IT CAN DO ON THE REVENUE SIDE OF THINGS MR KOVACEVICH SAYS WE'RE IN 15 STATES WITH BANKS AND MANY OF OUR CUSTOMERS ALSO HAVE OPERATIONS IN THOSE STATES SUCH AS SEARS TACO BELL AND MCDONALD'S TODAY WE CANNOT SAY TO THOSE CUSTOMERS HEY FILL OUT ONE FORM HERE AND WE'LL GIVE YOU ONE CHECKING ACCOUNT NUMBER AND ONE STATEMENT AND YOU CAN HAVE ALL YOUR STORES PLUGGED INTO ONE BANK' THAT WOULD BE ILLEGAL BANKERS ADD THAT BY DIVERSIFYING GEOGRAPHICALLY THEY WILL BE LESS SUSCEPTIBLE TO REGIONAL DOWNTURNS SUCH AS THOSE IN TEXAS OR NEW ENGLAND WHEN YOU'RE LANDLOCKED AND YOU STICK TO YOUR KNITTING YOU'RE CONCENTRATED SAYS JOSEPH MAY EXECUTIVE VICE PRESIDENT AT WHITNEY HOLDING CORP'S WHITNEY NATIONAL BANK IN NEW ORLEANS AND PRESIDENT OF THE ROBERT MORRIS ASSOCIATES A TRADE GROUP FOR LENDERS THE MOST EFFECTIVE WAY TO DIVERSIFY HAS BEEN THROUGH THE M&A ROUTE 9403110052 940311 STRUTTING THEIR DATA GEEKS GO TO BATTLE FOR BUCKS AND GLORY COMPUTER CONTEST CHALLENGES TOP COLLEGE PROGRAMMERS THE IVY LEAGUE FLOPS BIG BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX THEY'RE HERE FOR WHAT COULD BE CALLED THE OLYMPICS OF COMPUTING THE SUPER BOWL OF SOFTWARE THE WORLD SERIES OF MICROCODE BUT FIRST THE MEMBERS OF THE BULGARIAN TEAM HAVE TO FIGURE OUT HOW TO GET FROM THE AIRPORT TO THEIR HOTEL THEY MISSED THEIR AMERICAN ESCORT BUT LUCKILY HAVE THREE BUCKS AMONG THEM ENOUGH TO CATCH A CITY BUS THEN ANOTHER DILEMMA CHECKING IN ROOMS ARE RESERVED UNDER THE NAME OF THEIR COACH WHO DIDN'T MAKE IT BUT JUST THEN THE DIRECTOR OF THE COMPUTING CONTEST WANDERS INTO THE LOBBY AND USES HIS OWN CREDIT CARD TO BOOK THEM IN THESE HURDLES ARE NOTHING COMPARED TO THE EXCITEMENT THAT LIES AHEAD THEY WILL WRITE SOFTWARE THEY WILL PARTY ON DIET COKE THEY WILL SIGN A GROUP LETTER TO MICROSOFT LEGEND BILL GATES HIMSELF THE BULGARIANS ARE HERE TO COMPETE AGAINST SOME OF THE WORLD'S BEST COMPUTING MINDS FOR THIS IS THE 18TH ANNUAL INTERNATIONAL COLLEGIATE PROGRAMMING CONTEST ALL THE COMPETITORS ARE TOUGH THEIR MENTAL MUSCLES FLEXING WITH POWER THEIR PSYCHES ARE SO SECURE THEY DON'T EVEN MIND BEING CALLED GEEKS PERHAPS BECAUSE THERE IS NO TRANSLATION FOR IT IN BULGARIAN AS A MATTER OF FACT THE MAYOR OF PHOENIX OPENS THE CONTEST WITH A PROCLAMATION HONORING ALL THE CONTESTANTS FROM 35 UNIVERSITIES AS FAR AWAY AS SLOVAKIA AND TAIWAN AS SUPERIOR PROGRAMMING GEEKS THIS IS BEYOND JEOPARDY CONTESTANTS RACE TO DEBUG SATELLITE TRANSMISSIONS OR CREATE GEOPOSITIONING SOFTWARE THAT DETERMINES THE LOCATION OF A BOAT IN THE OCEAN WE'RE TALKING BRAGGING RIGHTS OVER THE ENTIRE WORLD SAYS CONTEST DIRECTOR BILL POUCHER A COMPUTERSCIENCE PROFESSOR AT BAYLOR UNIVERSITY WHO IS CALLED THE HIGH GEEK SOMETIMES TO HIS FACE BESIDES THE CHANCE TO WIN A SILVER TROPHY BOWL AND 6000 IN SCHOLARSHIPS FOR FIRST PLACE THE TEAMS GET TO STRUT THEIR STUFF BEFORE CORPORATE SCOUTS WHO MR POUCHER SAYS LUST AFTER TOP COLLEGE PROGRAMMERS MICROSOFT CORP FOR INSTANCE HAS SNAPPED UP AT LEAST 60 PAST CONTESTANTS AND SPONSORS THIS YEAR'S CONTEST THE CONTESTANTS LOVE THE ATTENTION ONE SIGNS THE GROUP LETTER TO MR GATES WITH THE NOTE HIRE ME I'M SMART AND I NEED TO EAT THE MOSTLY MALE COMPETITORS DON'T WIN HIGH MARKS FOR APPEARANCE LOOKING LIKE A GANG OF SKATEBOARDERS THEY SHOW UP AT A PRACTICE SESSION IN TSHIRTS SHORTS AND SNEAKERS SOME SPORT LONG HAIR IN PONY TAILS EVEN THE BULGARIANS PETER DIMOV DIMITRE KOZALIEV AND DIMITRE PISKYULEVGET IN ON THE ACT TWISTING THEIR PURPLE CAPS BACKWARD TO FIT IN BIGNAME SCHOOLS LIKE HARVARD MIT AND COLUMBIA COMPETE AGAINST THE LIKES OF MINNESOTA'S MACALESTER COLLEGE AND NEW YORK'S YESHIVA UNIVERSITY A TRIO FROM CANADA'S UNIVERSITY OF WATERLOO SWAGGERS IN PUMPING THEMSELVES UP WITH AN IMPRESSIVE POWER CHANT HERE WE ARE HERE WE ARE HERE WE ARE PREGAME BLUSTER ABOUNDS ALTHOUGH BY THE STANDARDS OF SAY WRESTLING IT IS SOMEWHAT TAME FOR EXAMPLE THEO JURRIENS COACH OF A DUTCH TEAM FROM RIJKS UNIVERSITEIT PREDICTS A TOP FIVE FINISH ASKED WHOM HE FEARS MOST MR JURRIENS POINTS AT THE SLOVAKIAN TEAM FROM COMENIUS UNIVERSITY IN BRATISLAVA SAYING WE HAVE OUR SPIES THERE WHO TELL US THEY ARE GOOD SLOVAKIA COACH MICHAL WINCZER WORRIES ABOUT THE BULGARIANS FROM SOFIA UNIVERSITY MR POUCHER THE HIGH GEEK WARNS THE STUDENTS THE CONTEST WILL BE ONE OF THE PREMIER EVENTS IN YOUR LIFE OR YOUR WORST NIGHTMARE TEAMS HAVE FIVE HOURS TO DESIGN SOFTWARE PROGRAMS TO SOLVE EIGHT PROBLEMS SOME OF WHICH ALONE COULD TAKE PROFESSIONAL PROGRAMMERS AS LONG AS SIX HOURS TO FIGURE OUT THERE IS A LOT OF STRESS LAST YEAR A FLURIDDEN SLOVAKIAN COLLAPSED AND WAS HOSPITALIZED ON THE BIG DAY STUDENTS MASS OUTSIDE THE CONVENTION HALL IN COLORCODED TSHIRTS BEARING NAMES OF THEIR SCHOOLS NERVOUSLY TOSSING FRISBEES ROBERT KAYE FROM CAL POLY STATE AT SAN LUIS OBISPO CALIF WEARS A SNAKE EARRING AND HAS HIS GAME HAIR ON A SPIKED RED MOHAWK WE'RE GONNA HAVE FUN HE SAYS TEAMMATE KATHLEEN LUCE BLOWS BUBBLES THE TEAMS FILE INTO THE CONTEST ROOM TOTING REFERENCE BOOKS ALONG WITH GOODLUCK CHARMS THE CAL POLY TEAM'S FOR SOME REASON BEING STUFFED ELEPHANTS THIS COMPETITION HAS NOT YET BECOME A SPECTATOR SPORT ABOUT 50 FANS PACK THE BLEACHERS THE CHIEF JUDGE WARNS ABOUT DISQUALIFICATION A BIG NONO KICKING OUT ANOTHER TEAM'S POWER PLUG ROGER HEINEN A MICROSOFT SENIOR VICE PRESIDENT SHOUTS START UP YOUR MACHINES GO HE RELEASES A STRING OF HELIUM BALLOONS TO THE CEILING AS THE STUDENTS GRAB FOR ENVELOPES CONTAINING ALL EIGHT PROBLEMS OVER THE NEXT FEW HOURS THEY WORK IN DESPERATE SILENCE SPRINTING FOR THE RESTROOM AND SODA AS SPECTATORS FRET EACH TIME A TEAM SUCCESSFULLY SOLVES A PROBLEM A BALLOON IS STRUNG UP OVER ITS AREA THE NINE JUDGES APPEAR SERIOUS ALTHOUGH AT HEART THEY ARE CUTUPS AT PRACTICE THEY SHOWED UP WEARING GROUCHO MARX MASKS SINCE EACH TEAM HAS ONLY ONE COMPUTER TO WORK WITH THE THREE MEMBERS SPLIT UP DUTIES ON THE DUTCH TEAM MARCO VERVOORT AND BUEKEMA GERT DIVIDE UP THE PROBLEMS LOOKING FOR THE ONES THEY SHOULD TACKLE FIRST MOST TEAMS OPT FOR THE EASIEST A PROGRAM FOR A CROSSWORD PUZZLE TEAMMATE GERTON LUNTER THE FASTEST TYPIST MANS THE KEYBOARD ALTHOUGH ALL THE PROBLEMS ARE WRITTEN IN ENGLISH THE FOREIGN STUDENTS ARE AT NO DISADVANTAGE THEY RELY ON ENGLISHLANGUAGE SOFTWARE IN THEIR HOME COUNTRIES THE STUDENTS BECOME SO ENGROSSED IN MENTAL GYMNASTICS THAT THERE IS PRECIOUS LITTLE TIME FOR TALK AMONG THEMSELVES LEAVING FANS TO SPECULATE ON THEIR PROGRESS BY TELLTALE MANNERISMS MARCO IS PLAYING WITH HIS HAIR THAT IS NOT A GOOD SIGNAL MR JURRIENS SAYS FROM THE SIDELINES THE SLOVAKIA TEAM SCORES FIRST IT GETS A PURPLE BALLOON FOR SOLVING A PROGRAM TO SORT LIBRARY BOOKS RIVAL STUDENTS GAZE ENVIOUSLY ACROSS THE ROOM TURNING BACK TO THEIR KEYBOARDS WITH RENEWED FERVOR WATERLOO STUDENT KAPING YEE IS ON HIS FEET DANCING BACK AND FORTH AS HIS FINGERS FLUTTER ACROSS THE KEYBOARD TEAMMATE IAN GOLDBERG PACES FURIOUSLY FINGERS SNAPPING AND KNUCKLES CRACKING THE WATERLOO TEAM DRAWS AN AMAZED GASP FROM FANS WHEN IT SOLVES WHAT JUDGES CONSIDERED THE TOUGHEST PROBLEM A TRIPLE AXEL OF COMPUTING A TRICKY NAVIGATION PROGRAM TO GUIDE SHIPS THROUGH PORTS OOOOH AN ORANGE AN ARMCHAIR TECHIE MARVELS AS THE BALLOON FOR THAT SOLUTION IS TOTED OUT TO THE WATERLOO TEAM AS THE FINAL MINUTES TICK AWAY EVEN FANS START TO SWEAT I CAN'T TAKE IT ANYMORE GREGG HAMILTON THE COACH FOR THE UNIVERSITY OF CENTRAL FLORIDA SAYS AS HE RUNS OUTSIDE COLUMBIA STUDENT NORM LUNDE YELLS WHAT WHAT AS HIS COMPUTER APPEARS TO MALFUNCTION HE'S HAVING A BAD DAY HIS TEAM HAS NO BALLOONS FINAL TABULATIONS REVEAL THE WINNER WITH SIX PROBLEMS SOLVED IT'S WATERLOO THE TEAM WITH THE POWER CHANT COLUMBIA FINISHES DEAD LAST MR JURRIENS'S DUTCH TEAM FINISHES SEVENTH TIED WITH SLOVAKIA BULGARIA ENDS UP 25TH WE DIDN'T JUSTIFY OUR TRIP I FEEL MR DIMOV LAMENTS AS NIGHT FALLS THE TEAMS MEET TO CELEBRATE AT A GEEKFEST THERE IS CAMARADERIE AND LAUGHTER AND THERE IS RELEASE OF TENSION AS THE COMPETITORS UNWIND OVER DIET COKES 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 9403110051 940311 BUSINESS BRIEF WEIRTON STEEL CORP BARGAINING UNITS RATIFY LABOR PACT WITH COMPANY WEIRTON STEEL CORP SAID ITS BARGAINING UNITS REPRESENTED BY THE INDEPENDENT STEELWORKERS UNION RATIFIED A LABOR AGREEMENT WITH THE STEELMAKER THE WEIRTON WVA COMPANY SAID THE THREEYEAR PACT PROVIDES BONUSES OF 1000 PER EMPLOYEE FOR THE FIRST YEAR AND 1250 FOR EACH OF THE FOLLOWING TWO YEARS THE PACT COVERS ABOUT 5000 WEIRTON STEEL EMPLOYEES A COMPANY SPOKESMAN SAID THE AGREEMENT ALSO PROVIDES WORKERS WITH A MANAGEDHEALTH CARE PLAN AND INCLUDES A PROVISION THAT PROTECTS A CERTAIN MINIMUM AMOUNT OF WORKERS FROM LAYOFFS UNDER CERTAIN CONDITIONS THE COMPANY DECLINED TO DISCLOSE WHAT THOSE CONDITIONS ARE AT THIS TIME WEIRTON STEEL OPERATES AN INTEGRATED FLATROLLED STEEL PRODUCTS PLANT 9403110050 940311 LEISURE & ARTS BOOKSHELF WESTWARD HO STORY OF THE GOLD RUSH BY DAVID SHRIBMAN THERE MAY HAVE BEEN AS MANY AS 10000 LIVESTOCK CARCASSES ON ONE BRANCH OF THE OVERLAND TRAIL MEXICAN BANDITS INDIAN RAIDERS AND PLAIN OLD HIGHWAYMEN ABOUNDED ON THE GROUND THERE WAS HEAT AND SNOW AND WINDS SO STRONG THEY COULD TOPPLE A CONESTOGA ON SHIPS THERE WERE CROWDED CONDITIONS AND SCURVY ONE GROUP OF TRAVELERS GOT SO HUNGRY THEY ATE THEIR OWN DOG AND THEN WHEN ONE OF THE PARTY DIED OF EXHAUSTION THEY ATE HIM TOO FOOLS AND DREAMERS CHASED AFTER GOLD FROM 1848 TO 1900 SEEKING IT IN CALIFORNIA OF COURSE BUT ALSO IN ALASKA COLORADO MONTANA AND IDAHO THE GOLD RUSHES WERE GALES OF CHANGE THAT BLEW ACROSS THE CONTINENT OPENING THE PRAIRIES AND MOUNTAINS TO WHITE SETTLEMENT CHANGING THE LAND AND SHAPING THE CULTURE OF THE WEST BOOM TOWNS SPRUNG UP ONLY TO DISAPPEAR INTO DUST A FEW FORTUNES WERE MADE AND MANY SMALL CACHES OF SAVINGS WERE DEPLETED FOR VAIN HOPES IT ALL BEGAN IN 1848 AT SUTTER'S MILL WHEN A NEW JERSEY CARPENTER FOUND A PARTICLE OF GOLD ABOUT HALF THE SIZE AND SHAPE OF A PEA WITHIN A YEAR 90000 PEOPLE MOSTLY THE YOUNG AND THE DESPERATE WERE ON THEIR WAY TO PICK UP WHAT GOD AND GEOLOGY PLACED IN CALIFORNIA THEY WERE THE '49ERS THE PIONEERS IN A MOVEMENT THAT BY THE TIME IT WAS OVER WOULD SEND A MILLION SOULS WEST TO STARVE GET HURT GO NUTS AND IN MANY CASES DIE FOR YEARS THE BEST BOOK ABOUT THIS MAD SCRAMBLE WASN'T EVEN WRITTEN BY AN AMERICAN IT WAS PIERRE BERTON'S KLONDIKE THE 1972 VOLUME THAT COMPLETED HIS HISTORY OF THE OPENING OF THE CANADIAN NORTHWEST BETWEEN CONFEDERATION AND WORLD WAR I BUT NOW COMES PAULA MITCHELL MARKS'S PRECIOUS DUST THE AMERICAN GOLD RUSH ERA 18481900 WILLIAM MORROW 448 PAGES 25 A COMPREHENSIVE LIVELY LOOK AT THE ENTIRE ERA WRITTEN WITH THE PROPER SKEPTICISM MANY OF THESE SEARCHERS AFTER GOLD WERE ROGUES CRIMINALS FOOLS AND MISFITS WITH LOTS OF CHILDISH DREAMERS SPRINKLED AMONG THEM THEY LIVED IN BRUSH ARBORS TENTS AND RUDE CABINS FURNISHING THOSE ABODES WITH FOUND ITEMS AND INGENUITY AS A PURPOSEFUL CHILD WOULD A PLAYHOUSE IN AN ODD ECHO OF CHILDHOOD PASTIMES THEY SPENT THEIR DAYS ON TREASURE HUNTS AND PLANNING OTHER IMPROBABLE SCHEMES FOR WEALTH WRITES MS MARKS WE HAVE COME TO THINK OF THE SEARCH FOR GOLD A MAD RUSH IN THE WORDS OF ONE ALASKA STAMPEDER TO A LAND NOBODY KNOWS ANYTHING ABOUT AS A TRULY AMERICAN PHENOMENON THE GOLD RUSHES ARE ALSO A MARKER IN OUR HISTORY MS MARKS ARGUES THAT THEY REPRESENT THE END OF THE IDEA THAT FRUGALITY AND HARD WORK ARE WHAT IT TAKES TO MAKE IT IN AMERICA AND TO HEAVEN THE STAMPEDES LASTED FOR A HALFCENTURY EXPIRING WHEN THE NEW FINDS DRIED UP AND WHEN IT BECAME CLEAR THAT ALMOST NOBODY GOT RICH CHASING AFTER GOLD BY THE TIME THE WHOLE THING WAS OVER THE COUNTRY HAD BEEN TRANSFORMED ITS CENTER OF GRAVITY SHIFTED ITS CULTURE JOLTED ITS IMAGE OF ITSELF ADJUSTED NO LONGER WAS THE WEST AN UNTAMED UNSETTLED LAND OF EXTREMES EMPTY AND FOREBODING NO LONGER DID THE MERCANTILE LIFE OF THE US END AT ST LOUIS EVEN WHEN THE SILVER AND COPPER BONANZAS ARE ADDED IN THE MINING WEST ADDED LITTLE TO THE WEALTH OF THE COUNTRY AND THE MEN WHO DEPLETED THEIR SAVINGS AND BORROWED FROM THEIR RELATIVES TO GO WEST SPENT FAR MORE MONEY OUTFITTING AND TRANSPORTING THEMSELVES THAN THEY FOUND IN THEIR PITIFUL LITTLE METAL PANS THE GOLDRUSH COMMUNITIES WERE AS ONE OBSERVER PUT IT LIKE THE CITIES OF THE MAGIC LANTERN WHICH A MOTION OF THE HAND CAN BUILD OR ANNIHILATE IN ONE YEAR THE SETTLEMENT OF NOME GREW FROM THREE TENTS AND A LOG CABIN TO A CITY OF 20000 PEOPLE IN THESE COMMUNITIES THE SCIENCE OF URBAN PLANNING WAS UNKNOWN BUT LAWS OF SUPPLY AND DEMAND WERE WELLRESPECTED THUS DAWSON HAD 30 SALOONS AND ONLY TWO BARBERSHOPS IT ALSO HAD ACCORDING TO ONE ACCOUNT AN UNCOUNTED NUMBER OF LAWYERS AND 235 GAMBLERS NOT ALL THE PLAYERS IN THIS NATIONAL MELODRAMA WERE MEN AMONG THE WOMEN SOME WERE GOLD DIGGERS SOME DUG GOLD NEARLY EVERYWHERE THEY WENT THEY CAUSED A SENSATION WOMEN BEING AS ONE KLONDIKE STAMPEDER SAID SCARCER THAN GOLD IN GEORGIA GULCH COLO A HORDE OF MEN TURNED UP TO GAWK AT THE NEW WAITRESS BECAUSE THERE WERE SO FEW WOMEN WESTERN GOVERNMENTS LOOKING FOR INDUCEMENTS WERE WILLING TO GIVE THEM GREATER LEGAL FREEDOMS THAN AVAILABLE ELSEWHERE IN MANY COMMUNITIES WOMEN HAD THE VOTE A RIGHT NOT EXTENDED TO ALL AMERICAN WOMEN FOR ANOTHER HALFCENTURY AND OF COURSE THIS CRAZY SPECTACLE BROUGHT OUT SOME UNRULY STUPID BEHAVIOR PEOPLE PAID 8 A DOZEN FOR EGGS THEY PUSHED THEMSELVES BEYOND THE LIMITS OF ENDURANCE THEY PRODDED THEIR ANIMALS UNMERCIFULLY ONE SADIST EXASPERATED THAT HIS WEARY OXEN WOULD NOT MOVE BUILT A FIRE UNDER THEM HE ROASTED THEM ALIVE MR SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9403110049 940311 LEISURE & ARTS IN CONCERT VOICES FROM ANOTHER WORLD BY HEIDI WALESON NEW YORK SEVERAL TIMES EACH YEAR FOUR WOMEN WEARING LONG DRESSES AND SINGING MEDIEVAL CHANT WALK SLOWLY IN SINGLE FILE UP THE SIDE AISLE OF ST MICHAEL'S CHURCH ON AMSTERDAM AVENUE IN MANHATTAN THEY ARE ANONYMOUS 4 RUTH CUNNINGHAM MARSHA GENENSKY SUSAN HELLAUER AND JOHANNA ROSE AN EXTRAORDINARY VOCAL QUARTET THAT PUTS CONCERT GOING ONTO AN ENTIRELY NEW PLANE FOR 70 OR 80 MINUTES WITH NO INTERMISSION NO APPLAUSE UNTIL THE END AND NO PROPS BUT ITS FOUR VOICES ANONYMOUS 4 INVITES THE AUDIENCE INTO AN INTENSE EVOCATION OF ANOTHER WORLD FOR SOME THAT WORLD IS MEDIEVAL FRANCE OR ENGLAND FOR OTHERS IT IS A PLACE THAT HAS NO MAP OR TIME BUT IN ANY CASE JUST AS THESE FOUR SINGERS TOGETHER ARE MORE THAN THE SUM OF THEIR INDIVIDUAL VOICES SO DOES THE CHURCH WHERE THEY SING BECOME SOMETHING MORE THAN JUST A SPACE ANONYMOUS 4 SINGS THE MUSIC OF THE HIGH MIDDLE AGES THE 12TH 13TH AND 14TH CENTURIES IT IS CAREFULLY RESEARCHED AND TRANSCRIBED BY MS HELLAUER THE GROUP'S MUSICOLOGIST BUT THAT IS JUST THE BEGINNING THE FOUR MEMBERS GO THROUGH MS HELLAUER'S FINDS BUILDING PROGRAMS AROUND THEMES SOME ARE MADE UP OF SACRED MUSIC ONE EXAMPLE IS AN ENGLISH LADYMASS 13TH AND 14TH CENTURY CHANT AND POLYPHONY IN HONOR OF THE VIRGIN MARY RECENTLY PERFORMED AS PART OF THE MUSIC BEFORE 1800 SERIES IN NEW YORK OTHERS ARE SECULAR SUCH AS LOVE'S ILLUSION MUSIC OF ROMANCE AND CHIVALRY IN MEDIEVAL FRANCE THE GROUP WEAVES PIECES OF CHANT SIMPLE MULTIVOICED SONGS COMPLEX POLYPHONY AND READINGS INTO A DRAMATIC EVENT AN ENGLISH LADYMASS FOR EXAMPLE OPENS WITH ALL FOUR WOMEN SINGING A UNISON CHANT MELODY ABOUT THE FIVE JOYS OF MARY NEXT THE WARMTH AND GENTLENESS OF THE TWOVOICE SONG EDI BEO THU HEVENEQUENE BLESSINGS ON YOU QUEEN OF HEAVEN WHICH INVOKES THE SWEETNESS OF MARY THE MOTHER THIS LEADS NATURALLY INTO THE THREEVOICE RONDELLUS FLOS REGALIS IN WHICH THE SINGERS ADDRESS THE VIRGIN MORE FORMALLY AND ELABORATELY AFTER A READING THAT SALUTES MARY AND ASKS FOR INTERCESSION THE FOUR VOICES EXPLODE INTO AN EXTREMELY COMPLEX MOTET SALVE MATER REDEMPTORIS PACING AND ORDERING PROVIDE TENSION AND RELEASE THROUGHOUT THE PROGRAM THE RAPTUROUS ALLELUIA THAT OCCURS MIDWAY THROUGH THE LADYMASS PROGRAM IS ONE DRAMATIC HIGH POINT LATER WE GET A MORE VISCERAL SHOCK A READING WHY HAVE YOU NO REUTHE ON MY CHILDE IN WHICH MARY HERSELF CRIES OUT AGAINST THE CRUELTY OF THE CRUCIFIXION IS FOLLOWED BY A WRENCHING SONG JESU CRISTES MILDE MODER THAT DESCRIBES THAT EVENT IN GRUESOME DETAIL THE VOICES ALWAYS CLOSE NEARLY COLLIDE IN A PARTICULARLY JARRING INTERVAL ON THE WORDS THE SONE HENG THE SON HUNG AND THE BALD IMAGE OF HUMAN SUFFERING LEAPS OUT OF THE MUSIC THE MEMBERS OF ANONYMOUS 4 GOT TOGETHER IN 1986 BECAUSE THEY WANTED TO SING MEDIEVAL MUSIC AND FOUND LITTLE OPPORTUNITY TO DO SO AS MS HELLAUER EXPLAINS THE REPERTOIRE HAS TRADITIONALLY BEEN SUNG BY MEN BECAUSE ONLY MEN SANG IT IN PUBLIC DURING THE MIDDLE AGES AND ALSO BECAUSE THE RANGE OF THE VOICE PARTS IS SO SMALL THAT IT DOES NOT DEMAND THE EXTRAVAGANTLY HIGH AND LOW NOTES OF A MIXED CHOIR IT IS IN PART THAT CLOSENESS OF RANGE AND THE INTERWEAVING OF VOCAL LINES THAT MAKE ANONYMOUS 4 SO MAGICAL WHILE MS CUNNINGHAM AND MS ROSE HAVE THE HIGHER VOICES MS HELLAUER IS AN ALTO AND MS GENENSKY IS IN THE MIDDLE DECISIONS ABOUT WHO SINGS WHAT LINE IN ANY GIVEN PIECE ARE NOT AUTOMATIC YOU DO NOT HEAR SOME SPECTACULAR SOPRANO LEAPING OUT OF A VOCAL QUARTET RIGIDLY STRATIFIED WITH EACH VOICE OCCUPYING A NICHE IN THE SPECTRUM FROM HIGH TO LOW THE SOPRANO/ALTO/TENOR/BASS ARRANGEMENT OF MOST CHOIRS INSTEAD THERE IS AN EXQUISITE CAREFULLY TUNED VOCAL BLEND IN WHICH INDIVIDUAL VOICES ARE LESS IMPORTANT THAN AN OVERALL SHIMMERING SOUND THAT SOUND CAN BE SERENE OR PASSIONATE BUT THE SIMILARITIES IN THE VOICES ARE WHAT COUNT HERE NOT THE DIFFERENCES ANONYMOUS 4 IS MORE LIKE A VOCAL STRING QUARTET THAN ANYTHING ELSE THAT OTHERWORLDLY EGOLESS QUALITY HAS EARNED THE GROUP FANS OUTSIDE THE CLASSICAL/EARLY MUSIC WORLD ITS TWO RECORDINGS ON HARMONIA MUNDI AN ENGLISH LADYMASS AND ON YOOLIS NIGHT HAVE SOLD MORE THAN 100000 COPIES COMBINED AND ITS MOST RECENT NEW YORK CONCERTS WERE STANDING ROOM ONLY SARAH FOLGER OF HARMONIA MUNDI SAYS THAT THE RECORDS HAVE BEEN SELLING IN THE NEW AGE MUSIC MARKET APPEALING TO PEOPLE INTERESTED IN EVERYTHING FROM THE MARIAN CULT TO THE NEW SPIRITUALITY INDEED AFTER A RECENT CONCERT TWO AUDIENCE MEMBERS TOLD MS ROSE THAT THEY HAD BECOME SERIOUS FANS BECAUSE THEY FOUND ANONYMOUS 4'S MUSIC TO BE A TREMENDOUS STRESS RELIEVER YET THE GROUP ALSO HAS ADMIRERS WHO EARNESTLY STUDY THE INFORMATIVE PROGRAM NOTES AND PUZZLE OVER THE TROPES AND SEQUENCES FOR THEM THE OLD FRENCH OLD ENGLISH AND CHURCH LATIN THE PLAINNESS OF CHANT AND THE SUDDEN THRILLING EXUBERANCE OF POLYPHONY CONJURE UP ANOTHER PLACE AND ANOTHER TIME IT ISN'T A SPECIFIC CHURCH SERVICE OR CASTLE BANQUET ANONYMOUS 4 ISN'T INTERESTED IN LITERAL RECREATION INSTEAD THE GROUP HAS GIVEN THE MUSIC A FRAMEWORK THAT ENABLES IT TO EVOKE THE FEELINGS IT WAS CREATED TO INSPIRE THE ALTERNATIVE SAYS MS HELLAUER IS THE ENDLESS CONCERT OF BEAUTIFULLY PERFORMED MEDIEVAL MUSIC THAT AFTER 20 MINUTES LEAVES YOU FEELING AS THOUGH YOU ARE BEING HIT OVER THE HEAD BY A BEAUTIFUL VELVET HAMMER PERFORMANCE SPACE IS CRUCIAL TO THIS EFFECT AND ANONYMOUS 4'S NEW SUCCESS ITS TOUR SCHEDULE HAS JUMPED FROM 20 CONCERTS A YEAR TO MORE THAN 75 NEXT SEASON MAY SEND IT INTO INAPPROPRIATE HALLS IT IS CHILLING TO IMAGINE WHAT HAPPENS ACOUSTICALLY AND EMOTIONALLY TO LADYMASS IN A CLASSROOM WHERE ANONYMOUS 4 HAS PERFORMED IT OR A 2500SEAT CONCERT HALL BETTER IT SHOULD STICK TO CHURCHES LIKE ST MICHAEL'S OR THE ONE IN THE SOUTH OF FRANCE WHERE A WOMAN CAME UP TO THE MEMBERS OF THE GROUP AFTER THE CONCERT AND TOLD THEM THE STONES RECOGNIZED YOUR MUSIC MS WALESON IS A MUSIC WRITER IN NEW YORK 9403110048 940311 POTOMAC WATCH ETHICS IRONY FREE THE WHITEWATER TEN BY PAUL A GIGOT ROGER ALTMAN DEPUTY TREASURY SECRETARY AND CHARTER FRIEND OF BILL TESTIFIES BEFORE A GRAND JURY NEXT WEEK THIS GIVES HIS COLLEGE CHUM AND BOSS PRESIDENT CLINTON PLENTY OF TIME TO DO THE HONORABLE THING AND PARDON HIM WHILE HE'S AT IT MR CLINTON MIGHT ALSO EXAMINE THE OTHERS WHO MAKE UP THE WHITEWATER 10 LISA CAPUTO PRESS AIDE TO HILLARY RODHAM CLINTON TESTIFIED YESTERDAY FOR THE HIGH CRIME OF HAVING TAKEN A PHONE CALL FROM ANOTHER GOVERNMENT FLACK OR TAKE MARK GEARAN THE EARNEST IDEALISTIC 37YEAROLD WHITE HOUSE COMMUNICATIONS DIRECTOR HE'S HAD TO HIRE AN ATTORNEY THOUGH EVERYONE AGREES HE'S TOO NICE TO BE NEFARIOUS THEN THERE'S THE FIRST LADY THE ERSTWHILE ST HILLARY A YEAR AGO ONLY A FEW RAISED DOUBTS ABOUT A DUAL PRESIDENCY WE WERE SUSPECTED OF NEANDERTHAL TENDENCIES NOW THE SAME LIBERALS WHO PUT HER ON A PEDESTAL ARE DISCOVERING THAT A FIRST LADY CAN'T BE FIRED LIKE A BERNIE NUSSBAUM ANNA QUINDLEN HATH NO GREATER FURY THAN FOR A FEMINIST ICON WHO SCREWS UP IT SOMEHOW DOESN'T SEEM RIGHT THAT MR CLINTON WOULD SUBJECT THESE LOYAL PERHAPS OVERLOYAL COLLEAGUES TO THE TENDER MERCIES OF A SPECIAL PROSECUTOR MR ALTMAN'S CASE MAY BE THE MOST POIGNANT AND NOT JUST BECAUSE HIS CHANCE TO BECOME TREASURY SECRETARY IS PROBABLY DASHED UNDER THE CRIMINAL STANDARD OF ETHICS ESTABLISHED HERE IN THE 1980S MR ALTMAN REALLY DOES HAVE A LEGAL PROBLEM HIS CONTROVERSIAL TESTIMONY TO CONGRESS WE ARE NOW LEARNING BEARS AN EERIE RESEMBLANCE TO THAT OF ELLIOTT ABRAMS DURING THE IRANCONTRA MESS PRESIDENT BUSH TOOK HIS TIME BUT IN THE END STEPPED UP AND PARDONED MR ABRAMS WOULD MR CLINTON DO ANYTHING LESS FOR HIS OLD GEORGETOWN PAL MR ABRAMS REMEMBER WASN'T PUNISHED FOR TELLING CONGRESS AN UNTRUTH HE RAN AFOUL OF NOT TELLING ALL THAT HE KNEW AS THE POINT MAN ON CONTRA POLICY HE WAS ASKED AT A HEARING IF COUNTRIES OTHER THAN THE US HAD GIVEN MONEY TO THE CONTRAS HE SAID NO WHICH WAS TECHNICALLY TRUE BUT MR ABRAMS KNEW THAT THE SULTAN OF BRUNEI HAD PROMISED SOME THOUGH THE MONEY HADN'T COME THROUGH MR ABRAMS CORRECTED HIS TESTIMONY ON BRUNEI A WEEK LATER FOR THIS CONSCIENTIOUSNESS SPECIAL PERSECUTOR LAWRENCE WALSH USED A FELONY THREAT AND THE RISK OF BANKRUPTCY TO FORCE MR ABRAMS TO PLEAD GUILTY TO HAVING WITHHELD INFORMATION FROM CONGRESS THE NEW YORK TIMES PANTING HEAVILY DECLARED THAT ELLIOTT ABRAMS IS GUILTY UNDER THIS STANDARD MR ALTMAN OUGHT TO BE PETRIFIED THE FORMER WALL STREET BANKER TOUCHED OFF A FUROR WHEN HE TOLD THE SENATE BANKING COMMITTEE THAT HE HAD MET WITH WHITE HOUSE AIDES ABOUT A RESOLUTION TRUST CORP INQUIRY INTO THE WHITEWATER MATTER HE WAS RUNNING THE RTC AT THE TIME THIS LOOKS LIKE A BLUNDER A PIECE OF AWFUL JUDGMENT MR ALTMAN NOW SAYS NOT A CRIME BUT THE TROUBLE IS THAT MAY NOT HAVE BEEN HIS ONLY MEETING THE NEW YORK TIMES PANTING LESS HEAVILY THE STORY APPEARED ON PAGE A20 REPORTED YESTERDAY THAT MR ALTMAN FAILED TO DISCLOSE TWO CONTACTS BETWEEN HIM AND THE WHITE HOUSE ABOUT THE AGENCY'S INVESTIGATION THE TIMES QUOTES WHITE HOUSE OFFICIALS AS SAYING MR ALTMAN NOW INTENDS TO DISCLOSE THOSE ADDITIONAL CONTACTS TO CONGRESS IF THIS SEEMS LIKE A TECHNICALITY WHAT ABOUT SPECIAL COUNSEL ROBERT FISKE IS HE NOW GOING TO THROW OUT MR WALSH'S ABRAMS STANDARD AFTER IT WAS BLESSED BY THE NEW YORK TIMES REP BARNEY FRANK AND OTHER LIBERAL ETHICISTS A TREASURY SPOKESMAN SAYS MR ALTMAN DIDN'T DISCLOSE THE OTHER CONVERSATIONS BECAUSE HE DIDN'T THINK THEY WERE SUBSTANTIVE BUT HOW WILL A GRAND JURY DEFINE SUBSTANTIVE IF THIS ALL SEEMS AMUSINGLY WEIRD IT CERTAINLY DIDN'T SEEM SO TO MR ABRAMS AND HIS FAMILY AND REST ASSURED IT DOESN'T TO MR ALTMAN HIS FAMILY AND HIS NEWLY RETAINED LAWYER BUT THIS IS WHAT HAPPENS WHEN POLITICIANS TRY TO CRIMINALIZE POLITICAL DIFFERENCES INSTEAD OF DEBATING THEM OUT IN THE OPEN IN ESSENCE THE STANDARDS OF THE '80S ARE COMING BACK TO HAUNT THE CHILDREN OF THE '60S WHO ARE GOVERNING IN THE '90S NO DOUBT THE CLINTONITES NEVER IMAGINED THIS AS THEY SAVORED THE WOES OF MR ABRAMS TED OLSON RAY DONOVAN AND OTHER REAGANITES UNJUSTLY PERSECUTED BUT RULES DON'T CHANGE JUST BECAUSE THE PLAYERS DO IN A BITTER IRONY IT'S THE SAME DEMOCRATIC FEAR OF NORMAL POLITICS THAT IS CAUSING SUCH HELL FOR THE WHITEWATER 10 IN THE '80S DEMOCRATS CRIMINALIZED POLITICS IN ORDER TO WIN ARGUMENTS THEY THOUGHT THEY'D LOSE TO RONALD REAGAN NOW DEMOCRATS ARE AFRAID THAT WHITEWATER HEARINGS IN CONGRESS WILL PROVE A BOON TO REPUBLICANS SO LOUISIANA SEN JOHN BREAUX AVERS THAT WE DON'T NEED MORE POLITICAL HEARINGS WE NEED MORE LEGAL HEARINGS TELL THAT TO LISA CAPUTO GEORGE MITCHELL WHO WROTE A BOOK PRAISING THE IRANCONTRA HEARINGS NOW SAYS THAT CALLS FOR WHITEWATER HEARINGS ARE PARTISAN POLITICS WELL SURE BUT THE STATE OF OUR POLITY WOULD BE HEALTHIER IF WE HAD MORE FREEWHEELING POLITICS IN CONGRESS AND FEWER TVCAMERA STAKEOUTS IN FRONT OF GRAND JURIES WHICH IS WHY MR CLINTON SHOULD PARDON THE WHITEWATER 10 THEN SEND THEM TO CONGRESS TO EXPLAIN WHAT THEY DID AND WHY THEY DID IT OF COURSE I'M NOT HOLDING MY BREATH 9403110046 940311 NORTHROP SEEKS GRUMMAN IN HOSTILE 204 BILLION BID DEAL SET EARLIER IN WEEK WITH MARTIN MARIETTA IS TOPPED BY 5 A SHARE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NORTHROP CORP LAUNCHED A HOSTILE 204 BILLION BID TO ACQUIRE GRUMMAN CORP IN AN ATTEMPT TO TORPEDO GRUMMAN'S AGREEMENT TO BE ACQUIRED BY MARTIN MARIETTA CORP FOR 193 BILLION THE SURPRISE NORTHROP BID CREATES A RARE TAKEOVER BATTLE FOR A MAJOR DEFENSE CONTRACTOR BUT NORTHROP WHICH HAS FAILED IN THREE SEPARATE AEROSPACEACQUISITION ATTEMPTS IN THE PAST TWO YEARS FACED A STARK CHOICE IN THE RAPIDLY CONSOLIDATING DEFENSE INDUSTRY BUY OR BE BOUGHT SO JUST THREE DAYS AFTER GRUMMAN SEEMED WED TO ANOTHER SUITOR NORTHROP SAID IT WILL TOP MARTIN MARIETTA'S OFFER BY 5 A SHARE AND LAUNCH A 60ASHARE CASH TENDER OFFER FOR GRUMMAN ON MONDAY AN ANGRY MARTIN MARRIETTA BLASTED THE NORTHROP ATTACK AND VOWED AN APPROPRIATE RESPONSE TAKEOVERSTOCK TRADERS SMELLED BLOOD NORTHROP'S ANNOUNCEMENT CAME SHORTLY BEFORE THE MARKET CLOSED IN AFTERHOURS TRADING IN THE SOCALLED THIRD MARKET GRUMMAN SHARES SURGED MORE THAN 8 TRADING AS HIGH AS 63 A SHARE TRADERS CLEARLY SAW THE NORTHROP OFFER AS THE START OF A WIDEOPEN BIDDING WAR WITH THE WINNER HAVING TO ANTE UP MORE THAN EITHER COMPANY IS OFFERING NOW THE MOVE BY NORTHROP BEST KNOWN NOW AS THE BUILDER OF THE COSTLY B2 STEALTH BOMBER IS UNUSUALLY AGGRESSIVE FOR THE COMPANY AND ITS CAUTIOUS CHAIRMAN KENT KRESA BUT NORTHROP WAS ANGERED AT BEING LOCKED OUT OF TAKEOVER NEGOTIATIONS BY GRUMMAN AFTER QUIETLY COURTING THE COMPANY FOR A YEAR AND THEN IGNORED BY GRUMMAN AFTER IT PROPOSED A CASH ACQUISITION FOR AT LEAST 50 A SHARE TWO WEEKS AGO THAT WAS THE LATEST DEFEAT FOR NORTHROP WHICH HAS LOST OUT IN BIDDING FOR THE TACTICALAIRCRAFT UNIT OF GENERAL DYNAMICS CORP AND THE FEDERAL SYSTEMS UNIT OF INTERNATIONAL BUSINESS MACHINES CORP AND WAS TURNED DOWN BY MCDONNELL DOUGLAS CORP AFTER VIGOROUSLY PURSUING A PURCHASE OF THAT COMPANY'S MISSILES DIVISION WITH THE DEFENSE INDUSTRY CONSOLIDATING INTO A FEW GIANT CONTRACTORS NORTHROP WAS UNDER INCREASING PRESSURE TO ACQUIRE A WELLMATCHED TARGET OR TO SELL ITSELF OFF IN PIECES OR IN TOTO TO A POWERFUL ALLY WHILE IT'S STILL HEALTHY GRUMMAN WHICH MADE ITS NAME AS BUILDER OF THE NAVY F14 TOMCAT FIGHTER HAS BEEN STEADILY SHRINKING SINCE THAT PROGRAM ENDED LONGTERM PROSPECTS AS A STANDALONE CONTRACTOR SEEMED BLEAK AND THE COMPANY STARTED INVESTIGATING STRATEGIC ALTERNATIVES ALTHOUGH IT HAD BEEN SAYING IT WASN'T SEEKING TO BE ACQUIRED THIS IS THE RIGHT MOVE FOR NORTHROP AND IT MAKES TREMENDOUS SENSE FOR US FOR OUR SHAREHOLDERS FOR THIS INDUSTRY MR KRESA SAID IN AN INTERVIEW NOT IF MARTIN MARIETTA CAN HELP IT IN A HARSHLY WORDED STATEMENT A CLEARLY SURPRISED NORMAN AUGUSTINE CHAIRMAN OF THE BETHESDA MD AEROSPACEELECTRONICS CONCERN SAID HIS COMPANY WAS DEEPLY DISAPPOINTED THAT NORTHROP HAS CHOSEN TO LAUNCH A HOSTILE ATTACK THAT SEEKS TO DISRUPT HIS COMPANY'S AGREEMENT WITH GRUMMAN HE SAID NORTHROP'S ACTION DEGRADES THE ENTIRE CHARACTER OF THE RATIONAL CONSOLIDATION OF THE DEFENSE INDUSTRY AND THAT MARTIN MARIETTA WILL RESPOND TO NORTHROP IN AN APPROPRIATE MANNER AT THE APPROPRIATE TIME A SPOKESMAN FOR GRUMMAN BASED IN BETHPAGE NY SAID ONLY WE ARE STUDYING THE NORTHROP OFFER THE CHAIRMEN OF GRUMMAN AND MARTIN MARIETTA ARE LONGTIME FRIENDS WHO NEGOTIATED THEIR ACQUISITION AGREEMENT UNDER NORTHROP'S NOSE IN JUST A MONTH THE NORTHROP BID MARKS THE SECOND HIGHPROFILE BIDDING WAR ON WALL STREET IN SIX MONTHS FOLLOWING THE 10 BILLION BATTLE FOR PARAMOUNT COMMUNICATIONS INC IT'S ANOTHER SIGN THAT THE HOSTILE CONTESTED TAKEOVER BUSINESS IS RETURNING TO LIFE AFTER THREE YEARS OF INACTIVITY TRADERS WERE ECSTATIC THIS HASN'T HAPPENED IN SUCH A LONG TIME A REAL CORPORATE BUYER AN ALLCASH BUYER COMING IN TO CHALLENGE AN ANNOUNCED FRIENDLY TAKEOVER SAID ONE TRADER AND IT HAPPENED SO QUICKLY THE NORTHROP OFFER IS CONDITIONED ON RECEIVING FEDERAL ANTITRUST CLEARANCE ALSO IT WASN'T CLEAR IF THE PENTAGON WOULD TRY TO EXERT ANY PRESSURE IF NORTHROP'S OFFER SPURS AN EXPENSIVE BIDDING WAR FOR GRUMMAN SUCH A FIGHT SHOWING THE DEFENSE CONTRACTORS AS WELLHEELED ENOUGH FOR A BIG TAKEOVER BATTLE MIGHT MAKE IT HARDER TO PUSH MORE FUND ALLOCATIONS PAST DEFENSEBUDGET CUTTERS IN CONGRESS I DON'T THINK WE'D WADE INTO IT UNLESS INDUSTRIAL CAPACITY WOULD SOMEHOW DIMINISH AS A RESULT OF THE MERGER SAID ONE POLITICALLY SAVVY NAVY OFFICER NORTHROP SAID IT HAD FINANCING COMMITMENTS OF 28 BILLION FROM CHASE MANHATTAN BANK AND CHEMICAL BANK FOR ITS OFFER AT YEAR END IT HAD DEBT OF JUST 160 MILLION STOCK TRADERS WERE QUICK TO NOTE THAT THE BANK CREDIT LINE APPEARS TO LEAVE ROOM FOR A BID WELL OVER 70 A SHARE AND NORTHROP EXECUTIVES IMPLIED THEY MIGHT BE WILLING TO GO HIGHER THAN 60 ENCOURAGING TRADERS IN A CONFERENCE CALL TO READ THE TEA LEAVES NORTHROP IS BEING ADVISED BY SALOMON BROTHERS TRADERS HADN'T EXPECTED NORTHROP TO COME BACK WITH A HIGHER BID PARTLY BECAUSE THEY INTERPRETED A STANDSTILL AGREEMENT IT HAD SIGNED DURING ITS EARLIER TALKS WITH GRUMMAN AS BARRING IT FROM MAKING AN OFFER NORTHROP EXECUTIVES SAID THAT ONCE THE MARTIN MARIETTA OFFER WAS ANNOUNCED THEY CONSIDERED THAT GRUMMAN WAS FOR SALE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WHICH CONTINUES AFTER THE BIG BOARD CLOSES GRUMMAN SHARES ROSE 675 A SHARE OR 123 TO 6175 SHARES OF NORTHROP CLOSED UP 50 CENTS OR 12 AT 41125 IN NEW YORK STOCK EXCHANGE TRADING AND MOVED UP ANOTHER 125 CENTS A SHARE AFTER HOURS MARTIN MARIETTA ROSE 50 CENTS OR 11 TO 4650 BUT WASN'T ACTIVE AFTER THE BIG BOARD CLOSED IRONICALLY AN EARLIER FIGHT AMONG DEFENSE CONTRACTORS WAS THE HOSTILE 1981 BID BY ELECTRONICS MAKER BENDIX CORP FOR MARTIN MARIETTA THE BATTLE WHICH MADE FAMOUS THE PACMAN DEFENSE IN WHICH EACH COMPANY TRIES TO GOBBLE UP THE OTHER WAS EXTREMELY DISRUPTIVE IN THE INDUSTRY YET IT WAS CREDITED IN THE END WITH MAKING MARTIN MARIETTA A LEANER MORE FOCUSED COMPANY THAT WAS ABLE TO ENTER THE 1990S IN AN ACQUISITION MODE NORTHROP WAS CRITICAL OF THE MARTIN MARIETTAGRUMMAN DEAL ESPECIALLY A LOCKUP AGREEMENT UNDER WHICH GRUMMAN AGREED TO PAY MARTIN MARIETTA 50 MILLION IF ANOTHER PARTY OUTBID IT NORTHROP CALLED THE AGREEMENT IMPROPER AND ILLEGAL ONE TRADER POINTED OUT THAT IN THE PARAMOUNT BATTLE THE DELAWARE SUPREME COURT CRITICIZED PARAMOUNT'S BOARD FOR MAKING A DEAL WITH VIACOM INC THAT LIMITED ITS RIGHTS TO CONSIDER A HIGHER OFFER ONE OF THE JUDGES SAID THAT CONTRACT IMPROPERLY LIMITED PARAMOUNT FROM EXERCISING ITS DUTY TO OBTAIN THE BEST DEAL FOR SHAREHOLDERS IN A LETTER TO GRUMMAN CHAIRMAN RENSO L CAPORALI MR KRESA SAID GRUMMAN'S STOCKHOLDER INTERESTS WERE NOT WELL SERVED BY THE COMPANY'S AGREEMENT TO BE ACQUIRED BY MARTIN MARIETTA MR KRESA SAID THAT NORTHROP AND GRUMMAN HAD CONDUCTED DETAILED DISCUSSIONS EXPLORING ORGANIZATIONAL FIT A REVIEW OF KEY MANAGEMENT PERSONNEL AND A SHARED STRATEGIC VISION WHICH CONTINUED IN EARNEST IN LATE 1993 AND INTO 1994 BUT THE CHAIRMAN EXPRESSED ANGER AT NOT BEING ON A LEVEL PLAYING FIELD WITH MARTIN MARIETTA MR KRESA NOTED THAT ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GRUMMAN REPRESENTATIVES AS EARLY AS FEB 16 ASKED MARTIN MARIETTA BUT NOT US TO SUBMIT THEIR HIGHEST AND BEST OFFER THE DOCUMENTS NOTE THAT MARTIN MARIETTA HAD DEMANDED EXCLUSIVITY IN NEGOTIATIONS JERRY CANTWELL AN ANALYST FOR LIONHEART RESEARCH SAID IT IS UNLIKELY THAT MARTIN MARIETTA'S MR AUGUSTINE WILL JUST SAY OK AND WALK AWAY HE SAID THAT WHILE THE NORTHROP OFFER SEEMS TO MAKE FINANCIAL SENSE THERE'S A RISK FOR THE POTENTIAL ACQUIRER YOU DON'T WANT TO SEE THEM GET IN AN ALLOUT BIDDING WAR IN CONTRAST TO COMMENTS EARLIER THIS WEEK FROM MR CAPORALI WHO SAID THE TOUGH DEFENSEBUDGET ENVIRONMENT ISN'T A TIME TO GET ALL WRAPPED UP IN SENTIMENTALITY MR KRESA SEEMED TO EMPHASIZE THE IMPORTANCE OF HISTORY IN NORTHROP'S OFFER HE SAID HE CONSIDERED NORTHROPGRUMMAN CORP AS HE PROPOSED TO NAME IT A ROBUST BUSINESS ENTITY FOR THE NEW ERA HE SAID THE 5ASHARE PREMIUM THAT NORTHROP IS OFFERING OVER A MARTIN MARIETTA BID THAT MANY ANALYSTS HAD CONSIDERED ALREADY HIGHEND REPRESENTS OUR OWN ANALYSIS OF THE STRATEGIC FIT OF THE OPERATIONS HE ADDED WE DON'T SEE ANY ANTITRUST PROBLEMS AT ALL MR KRESA CALLED AN ACQUISITION OF GRUMMAN SLIGHTLY ACCRETIVE TO NORTHROP EARNINGS IN THE FIRST YEAR BUT OFFERING SHARPER INCREASES IN SUCCEEDING YEARS THIS IS A GOOD DEAL FOR NORTHROP SHAREHOLDERS AS EVALUATED BESIDES THE B2 NORTHROP MAKES 40 OF THE F/A18 FIGHTER FOR THE NAVY AND FUSELAGES FOR BOEING CO'S 747 JUMBO JET NORTHROP ALSO BUILDS RADAR JAMMERS FOR FIGHTER JETS BUT IT HAS HAD PROBLEMS BUILDING A STEALTHY CRUISE MISSILE CALLED TSSAM THAT HAS RACKED UP 603 MILLION IN LOSSES IN EACH OF THREE KEY PRODUCT AREAS MILITARY AIRCRAFT AIRPLANE SUBASSEMBLIES AND DEFENSE ELECTRONICS THE TWO COMPANIES WOULD HAVE AN EXTRAORDINARY FIT MR KRESA SAID HE ADDED THAT NORTHROP IS ESPECIALLY ATTRACTED BY GRUMMAN'S EXPERIENCE IN ENGINEERING NAVY AIRCRAFT GRUMMAN BUILDS THE NAVY'S E2C HAWKEYE AIRBORNE COMMAND PLANE RANDALL SMITH IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9403110045 940311 BUSINESS BRIEF PACIFIC TELESIS GROUP FINAL APPROVAL FOR SPINOFF OF PACTEL IS GIVEN BY BOARD PACIFIC TELESIS GROUP SAID ITS BOARD GAVE FINAL APPROVAL FOR THE SPINOFF OF THE COMPANY'S WIRELESS BUSINESSES KNOWN AS PACTEL CORP THE DATE FOR THE SPINOFF WAS SET FOR APRIL 1 PACTEL WHICH INCLUDES THE REGIONAL PHONE COMPANY'S CELLULAR PAGING AND VEHICLE LOCATION OPERATIONS WENT PUBLIC IN DECEMBER PACIFIC TELESIS NOW OWNS 424 MILLION SHARES OF PACTEL CORP STOCK ABOUT 86 OF THE SHARES OUTSTANDING THESE SHARES WILL BE DISTRIBUTED TO PACIFIC TELESIS SHAREHOLDERS OF RECORD AS OF MARCH 21 IN A 1FOR1 TAXFREE TRANSACTION THE DISTRIBUTION OF THE SHARES IS EXPECTED TO BE COMPLETED APRIL 5 AFTER THE SPINOFF PACIFIC TELESIS WILL HAVE NO FINANCIAL INTEREST IN PACTEL CORP WHICH WILL CHANGE ITS NAME TO AIRTOUCH COMMUNICATIONS PACTEL REVENUE WAS 988 MILLION IN 1993 9403110044 940311 BUSINESS BRIEF ALEXANDER ENERGY CORP STOCK SWAP PLANNED TO BUY AMERICAN NATURAL ENERGY ALEXANDER ENERGY CORP SAID IT PLANS TO ACQUIRE AMERICAN NATURAL ENERGY CORP IN A STOCK SWAP AND DIRECTORS OF BOTH COMPANIES HAVE APPROVED THE TRANSACTION TERMS CALL FOR HOLDERS OF EACH OF THE 38 MILLION AMERICAN NATURAL COMMON SHARES OUTSTANDING TO RECEIVE 162 SHARES OF ALEXANDER ENERGY THERE ARE CURRENTLY 64 MILLION SHARES OF ALEXANDER ENERGY OUTSTANDING INDICATED VALUE OF THE TRANSACTION IS 209 MILLION IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY ALEXANDER ENERGY CLOSED AT 550 A SHARE UP 25 CENTS AND AMERICAN NATURAL ENERGY CLOSED AT 750 A SHARE UNCHANGED ALEXANDER AN OIL AND NATURALGAS COMPANY IN OKLAHOMA CITY SAID THE PROPOSED PURCHASE IS SUBJECT TO REGULATORY APPROVAL AMERICAN NATURAL IN TULSA OKLA IS ALSO AN OIL AND GAS CONCERN 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 9403110042 940311 UNPROVEN REPORT ABOUT DEATH OF FOSTER HELPED SINK THE STOCK AND BOND MARKETS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FINANCIAL CONSULTANTS EAGER TO INFLUENCE THE MARKETS CAN SOMETIMES SUCCEED EVEN WITH THE LATEST WILD SPECULATION DAVID SMICK PROVED THAT YESTERDAY WHEN HIS FINANCIALGOSSIP NEWSLETTER PRINTED A REPORT UNPROVEN HE READILY CONCEDES ABOUT THE SUICIDE OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER AND HELPED SEND STOCKS AND BONDS TUMBLING CONCERN THAT THE WHITEWATER MESS WOULD DERAIL THE CLINTON LEGISLATIVE AGENDA CERTAINLY HELPED DEPRESS THE MARKETS BUT THE PERIODIC NEWSLETTER PUBLISHED BY JOHNSON SMICK INTERNATIONAL WAS CITED IN PARTICULAR THE TWOPAGE ISSUE REPORTED THAT STAFFERS IN THE OFFICE OF SEN DANIEL MOYNIHAN THE NEW YORK DEMOCRAT SAID THAT THE BODY OF CLINTON AIDE VINCENT FOSTER WAS MOVED FROM AN ADMINISTRATION APARTMENT IN VIRGINIA TO THE PARK LOCATION WHERE IT WAS FOUND IF TRUE SUCH A CLAIM WOULD RAISE SHOCKING QUESTIONS ABOUT THE CLINTON ADMINISTRATION'S INVESTIGATION OF THE DEATH OF MR FOSTER BUT MR SMICK A ONETIME AIDE TO FORMER REPUBLICAN CONGRESSMAN JACK KEMP SAID HE WAS SURPRISED BY THE MARKET REACTION TO HIS COLUMN CASUALLY PASSING ALONG A RUMOR HE SAID HE DIDN'T KNOW WHETHER IT WAS TRUE THE TONE OF THE NEWSLETTER WAS FAR MORE SOBER AND AUTHORITATIVE AGAIN WE NORMALLY IGNORE WASHINGTON'S REGULAR STREAM OF RUMOR MONGERING EVERY TIME A PRESIDENT GETS INTO TROUBLE BECAUSE THE RUMORS ARE ALMOST ALWAYS UNTRUE IT READ IN THIS CASE HOWEVER THE OFFICES OF SENATE FINANCE COMMITTEE CHAIRMAN MOYNIHAN ARE PUTTING THE WORD OUT THAT FOSTER IN FACT COMMITTED SUICIDE IN A PRIVATE APARTMENT IN VIRGINIA THE WHITE HOUSE AND SEN MOYNIHAN'S OFFICE VIGOROUSLY DENIED THE RUMOR MR SMICK AND HIS PARTNER MANUEL JOHNSON THE FORMER FEDERAL RESERVE VICE CHAIRMAN CHARACTERIZE THEIR BUSINESS AS PRACTICING INFORMATION ARBITRAGE MR JOHNSON'S FORMER POSITION GIVES THEM ENTREE TO FINANCIAL MOVERS AND SHAKERS BUT EVEN THEY DON'T PRETEND THAT THEIR INFORMATION IS 100 RELIABLE IF YOU'RE 55 TO 60 RIGHT YOU'RE GOLD MR SMICK HAS SAID IN THE PAST HE WON'T DISCLOSE THE CIRCULATION OF HIS NEWSLETTER OR ITS PRICE BUT BOTH HE AND HIS PARTNER HAVE PROSPERED WITH THE FIRM WHICH ALSO HOLDS CONFERENCES AND GIVES ADVICE WASHINGTON HAS BEEN RIFE WITH WHITEWATER RUMORS BUT ONCE THE FOSTER RUMOR WAS SET IN THE TYPE OF THE JOHNSON SMICK NEWSLETTER IT WAS GIVEN A WIDE AIRING MARKET NEWS SERVICES WIDELY REPORTED THE NEWSLETTER WAS AFFECTING THE CREDIT AND CURRENCY MARKETS AND THE CONSERVATIVE TALKSHOW HOST RUSH LIMBAUGH DISCUSSED IT ON HIS WIDELY FOLLOWED RADIO BROADCAST SAID THOMAS D GALLAGHER A POLITICAL ANALYST FOR LEHMAN BROTHERS INC IN WASHINGTON WE'RE IN A SITUATION WHERE THE SCANDAL HAS TAKEN ON A LIFE OF ITS OWN AND THE MARKETS ARE GOING TO BE SUSCEPTIBLE TO RUMORS 9403110040 940311 LETTERS TO THE EDITOR BREAST IMPLANT LINKS TO ILLNESS UNRESOLVED AS AN EPIDEMIOLOGIST AND PHYSICIAN I AM GREATLY CONCERNED BY THE POSSIBLE REPERCUSSIONS OF THE AGREEMENT OF A MULTIBILLIONDOLLAR SETTLEMENT BY DOW CORNING BRISTOLMYERS SQUIBB AND BAXTER HEALTHCARE FEB 14 I AM CURRENTLY THE PRINCIPAL INVESTIGATOR OF THE WOMEN'S HEALTH SURVEY AN ONGOING STUDY OF 10000 WOMEN THAT IS EXPLORING THE POSSIBLE LINKS BETWEEN COSMETIC BREAST IMPLANTS AND LONGTERM ILLNESSES WE ARE STILL ACTIVELY RECRUITING STUDY PARTICIPANTS AND WE HAVE NOT YET REACHED ANY CONCLUSIONS ABOUT POSSIBLE HEALTH EFFECTS WE EXPECT THAT IT WILL BE AT LEAST ANOTHER YEAR BEFORE THE STUDY IS CONCLUDED WOMEN PARTICIPATING IN THE STUDY HAVE ALREADY CONTACTED ME INQUIRING WHETHER THIS AGREEMENT NULLIFIES THE NEED FOR OUR RESEARCH THIS COMMON PERCEPTION CAN UNDERMINE THE BASIS OF MEDICAL RESEARCH WOMEN WHO LEARN OF THIS SETTLEMENT MAY ASSUME THAT THE BREAST IMPLANT CONTROVERSY HAS BEEN RESOLVED ON THE CONTRARY WITHOUT THE INPUT OF THESE WOMEN WE WILL NOT BE ABLE TO COMPLETE OUR STUDY AND PROVIDE WOMEN WITH THE ANSWERS THEY NEED SUCH SETTLEMENTS CAN NEVER MARK THE END OF THE SEARCH FOR TRUTH 9403110038 940311 BUSINESS BRIEF CONRAIL INC CARRIER SAYS 1STQUARTER NET TO BE HURT BY BAD WEATHER CONRAIL INC A RAILFREIGHT CARRIER SAID ITS FIRSTQUARTER EARNINGS WOULD BE HURT BY THE EXTREME WINTER WEATHER THE PHILADELPHIABASED CARRIER SAID THE WEATHER WOULD HAVE A SUBSTANTIALLY ADVERSE IMPACT ON THE PERIOD'S RESULTS BUT IT SAID THE GROWING STRENGTH OF TRAFFIC AND OUR COMMITMENT OF MANAGING PRODUCTIVITY WILL HELP US OFFSET THE INCREMENTAL FIRSTQUARTER COSTS CAUSED BY THE WEATHER A YEAR EARLIER CONRAIL EARNED 52 CENTS A SHARE BEFORE ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS ON 816 MILLION IN REVENUES AFTER THE ACCOUNTING CHANGES IT HAD A LOSS OF 39 CENTS A SHARE IN ADDITION TO SNOW AND ICE PROBLEMS THE WEATHER FORCED CONRAIL TO RUN SHORTER TRAINS WHICH REQUIRED MORE PERSONNEL AND LOCOMOTIVES TO MOVE FREIGHT THE COMPANY ALSO SAID THAT 330 NONUNION EMPLOYEES OUT OF ABOUT 400 ELIGIBLE ACCEPTED AN EARLYRETIREMENT PROGRAM ANNOUNCED IN DECEMBER CONRAIL ESTIMATES IT WILL TAKE A CHARGE OF 75 MILLION TO 85 MILLION BEFORE TAXES IN THE FIRST QUARTER TO COVER THE COST OF THE PROGRAM 9403110037 940311 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH FIRM FORMS JOINT VENTURE TO SELL PRODUCTS IN CHINA AMERICAN TELEPHONE & TELEGRAPH CO SAID IT IS FORMING A JOINT VENTURE TO MAKE AND SELL TELEPHONES AND TELECOMMUNICATIONS PRODUCTS IN CHINA AT&T SAID IT WILL OWN 53 OF THE COMPANY AND SUPPLY THE TECHNOLOGY AND MOST OF THE COMPONENT PARTS ITS PARTNERS ARE THE POST & TELECOMMUNICATIONS INDUSTRIAL CORP OF CHINA WHICH WILL OWN 30 AND DISTRIBUTE THE PRODUCTS AND S MEGGA TELECOMMUNICATIONS LTD OF HONG KONG A MANUFACTURER WHICH WILL OWN 17 THE JOINT VENTURE COMPANY CALLED AT&T CONSUMER TELECOMMUNICATIONS PRODUCTS BEIJING LTD PUTS THE AT&T BRAND IN A CONSUMER MARKET OF OVER ONE BILLION PEOPLE SAID BILL WARWICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AT&T CHINA INC THE BUSINESS UNIT WAS ESTABLISHED LAST YEAR AFTER AT&T AND THE STATE PLANNING COMMISSION OF CHINA SIGNED A WIDERANGING MEMORANDUM OF UNDERSTANDING PLEDGING TO WORK TOGETHER TO ENHANCE AND MODERNIZE CHINA'S TELECOMMUNICATIONS INFRASTRUCTURE 9403110036 940311 BUSINESS BRIEF PRIDE PETROLEUM SERVICES INC OFFSHORE RIGS TO BE ACQUIRED IN STOCK CASH TRANSACTION PRIDE PETROLEUM SERVICES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE THE ASSETS OF PRIVATELY HELD OFFSHORE RIGS LLC BASED IN HOUMA LA FOR 785000 COMMON SHARES AND 20 MILLION IN CASH THE STOCK PORTION OF THE TRANSACTION HAS AN INDICATED VALUE OF 39 MILLION PRIDE SHARES CLOSED AT 5 DOWN 375 CENTS OR 7 IN NASDAQ STOCK MARKET TRADING PRIDE A HOUSTON OIL AND NATURALGAS FIELDSERVICES COMPANY SAID IT ALSO PLANS TO ASSUME ABOUT 75 MILLION OF OFFSHORE RIGS' DEBT OFFSHORE RIGS OWNS DRILLING RIGS AND RELATED EQUIPMENT SEPARATELY PRIDE SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER SIX MILLION NEW COMMON SHARES AND 120000 SHARES BY A HOLDER THE COMPANY HAS 163 MILLION SHARES OUTSTANDING PROCEEDS WILL BE USED AMONG OTHER THINGS TO ACQUIRE OFFSHORE RIGS KIDDER PEABODY & CO WILL MANAGE THE OFFERING 9403110035 940311 BUSINESS BRIEF MICHIGAN NATIONAL CORP SOME SENIOR MANAGEMENT OFFICIALS FACE LOSS OF JOBS MICHIGAN NATIONAL CORP SAID IT WILL ELIMINATE SOME SENIOR MANAGEMENT JOBS AS PART OF A RESTRUCTURING PLAN AIMED AT BOLSTERING ITS PROFITABILITY THE FARMINGTON HILLS MICH BANKHOLDING COMPANY SAID IT'S CONSOLIDATING ITS CORE FINANCIAL BUSINESSES TO REMOVE MANAGEMENT LAYERS AND OPERATE MORE EFFICIENTLY MICHIGAN NATIONAL SAID THE RESTRUCTURING ALONG WITH OTHER COSTCUTTING STEPS ALREADY TAKEN WILL REDUCE ITS EXPENSES 30 MILLION THIS YEAR AND 35 MILLION IN 1995 ROBERT J MYLOD MICHIGAN NATIONAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT ISN'T CLEAR YET HOW MANY SENIOR MANAGEMENT JOBS WILL BE ELIMINATED IN JANUARY MICHIGAN NATIONAL SAID IT WILL SHUT 12 BANK BRANCHES IN MICHIGAN AND ELIMINATE 80 JOBS THIS YEAR TO CUT COSTS IT ADDED THAT IT ALSO IS TO DECIDE WHETHER TO SHED OPERATIONS IN CALIFORNIA AND TEXAS ALL OF THIS IS BEING DONE TO MAKE US MORE EFFICIENT AND A MORE EFFECTIVE COMPANY SAID DOUGLAS E EBERT NEWLY HIRED PRESIDENT AND CHIEF OPERATING OFFICER 9403110034 940311 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON SCRAMBLES TO OFFSET THE TORRENT OF WHITEWATER ACTIVITY THE WHITE HOUSE IS STUNNED BY REACTION TO THE WHITEWATER SUBPOENAS HOW CAN THE PUBLIC NOT BE PAYING ATTENTION WHEN EVERY NEWS OUTLET IS GOING CRAZY WITH THIS SAYS DEMOCRATIC ANALYST BOB BECKEL TO TRY TO DIVERT ATTENTION CLINTON WILL TALK ABOUT OTHER ISSUES SUCH AS JOBS THIS WEEKEND IN DETROIT CLINTON AIDES START MEETING WITH DEMOCRATS ON MIDTERM ELECTION STRATEGIES AMID THE TURMOIL A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT AMERICANS APPROVE OF CLINTON'S HANDLING OF THE ECONOMY BY 47 TO 43 AND OF FOREIGN POLICY BY 47 TO 39 BUT 47 NOW THINK THE NATION IS ON THE WRONG TRACK UP FROM 42 IN JANUARY AND SOME DEMOCRATS FEAR A WORSENING AS WHITEWATER FOMENTS AFTER FINDING REP LEACH'S OFFICE CLOSED SPECIAL COUNSEL ROBERT FISKE'S OFFICE ASKS THE WALL STREET JOURNAL FOR A LIST OF THE WHITEWATER WITNESSES THAT HOUSE BANKING REPUBLICANS PLAN TO CALL INTEREST RATES CAST A SHADOW OVER HOPES FOR ECONOMIC RECOVERY TWOTHIRDS OF THOSE SURVEYED IN THE JOURNAL/NBC POLL EXPECT HIGHER INTEREST RATES OVER THE NEXT YEAR AS DO MANY ECONOMISTS THE NEXT MOVE COULD COME AT A MARCH 22 FED MEETING THE MAJOR WORRY IS THAT THE FED MAY TIGHTEN TOO MUCH WARNS THE DRI/MCGRAW HILL FORECASTING FIRM BUT UNEMPLOYMENT WORRIES DECLINE WITH 33 OF AMERICANS RATING IT THE TOP ECONOMIC ISSUE DOWN FROM 43 LAST OCTOBER SOME 52 NOW THINK THE ECONOMY WILL STAY ABOUT THE SAME OVER THE NEXT YEAR AFTER RECENT GAINS THOUGH THE 29 WHO THINK IT WILL GET BETTER IS DOWN FROM 44 IN JANUARY THE PUBLIC FEELS BETTER ABOUT THE ECONOMY BUT THERE IS STILL AN UNEASINESS SAYS ROBERT TEETER WHO CONDUCTED THE POLL WITH PETER HART TRADE TALKS WITH JAPAN HEAD FOR A CRUCIAL SHOWDOWN NEXT WEEK DESPITE PROGRESS IN OPENING JAPAN'S CELLULARPHONE MARKET OFFICIALS KEEP WORKING ON A LIST OF JAPANESE GOODS THAT COULD FACE US SANCTIONS IF AN ACCORD ISN'T REACHED LIKELY INCLUSIONS FAX MACHINES AND CELLULAR GEAR JAPANESE BUSINESS OFFICIALS SAY THAT FIGURES TO BE RELEASED NEXT WEEK WILL SHOW AN INCREASED FOREIGN SHARE OF JAPAN'S SEMICONDUCTOR MARKET IN THE POLL 49 OF AMERICANS BLAME JAPAN FOR THE US TRADE DEFICIT WITH THAT COUNTRY BUT 35 BLAME THE US BY 58 TO 32 THEY SAY JAPAN'S POLICY IS COSTING US JOBS BY NEARLY 2 TO 1 THOSE SURVEYED SAY IT IS IMPORTANT TO STAND UP TO JAPAN EVEN IF IT SPARKS A TRADE WAR BUT THE PUBLIC IS EQUALLY DIVIDED ON WHETHER THE US OR JAPAN WOULD BE HURT MORE BY A TRADE WAR BY 54 TO 37 AMERICANS NOW BELIEVE THE US IS A STRONGER ECONOMIC POWER THAN JAPAN A STUNNING REVERSAL FROM JUST THREE YEARS AGO GORE GEARS UP FOR MORE TELEVISION AND OTHER APPEARANCES AS CLINTON'S SPOKESMAN ON WHITEWATER HE ALSO WILL EXPAND HIS TELECOMMUNICATIONS ADVOCACY BY TRAVELING TO AN INTERNATIONAL CONFERENCE IN ARGENTINA IN THE NEW POLL POSITIVE VIEWS OF GORE DIP TO 44 FROM 54 IN NOVEMBER CHRISTOPHER VISITS CHINA TODAY AMID WORRIES BY US INTELLIGENCE THAT ARRESTS OF DISSIDENTS THERE WERE DRIVEN BY A HARDLINE FACTION THAT COULD END UP FORCING CLINTON TO CURTAIL USCHINA TRADE IN THE POLL TWOTHIRDS OF AMERICANS THINK THE US SHOULD TIE TRADE TO DEMANDS THAT CHINA IMPROVE ITS HUMANRIGHTS POLICIES SENATE RACE KENTUCKY SEN FORD EMERGES AS A POSSIBLE INTERIM SENATE DEMOCRATIC LEADER WHEN MITCHELL LEAVES WITH ARKANSAS'S PRYOR A SLEEPER CANDIDATE FOR THE POST IN THE POLL THE PUBLIC BY 73 TO 22 THINKS GRIDLOCK CONTINUES EVEN THOUGH DEMOCRATS CONTROL BOTH CONGRESS AND THE WHITE HOUSE HEALTHCARE HUDDLE DEMOCRATIC AND GOP MEMBERS OF THE SENATE FINANCE COMMITTEE PLAN A TWODAY RETREAT TO RURAL VIRGINIA LATE NEXT WEEK TO DISCUSS WHETHER TO USE THE CLINTON BILL AS THE STARTING POINT FOR DRAFTING HEALTHCARE LEGISLATION AMERICANS BY 40 TO 29 TRUST DEMOCRATS MORE THAN REPUBLICANS ON HEALTHCARE REFORM US OFFICIALS FEAR THAT PUBLIC BACKING FOR BOSNIA PEACEKEEPING IS TENUOUS A MAJORITY OF AMERICANS BY 53 TO 40 FAVOR USING US TROOPS TO KEEP THE PEACE IN BOSNIA IF AN AGREEMENT IS REACHED THE JOURNAL/NBC POLL FINDS AMERICANS BY 53 TO 33 ALSO APPROVE OF CLINTON'S HANDLING OF BOSNIA BUT PENTAGON OFFICIALS AND NATO ALLIES WORRY THAT PUBLIC AND CONGRESSIONAL SUPPORT WOULD CRUMBLE AS SOON AS THE US SUFFERED ANY DEATHS OFFICIALS COUNT ON RUSSIA TO HELP MAINTAIN ORDER IN THE AREA IN THE POLL 61 OF AMERICANS SAY THEY SEE RUSSIA OVERALL AS NEITHER AN ALLY NOR AN ADVERSARY BUT DESPITE THE RECENT SPY FLAP THEY FAVOR CONTINUING AID TO RUSSIA BY A MARGIN OF 54 TO 38 AMERICANS BY 48 TO 21 HAVE POSITIVE FEELINGS ABOUT THE UNITED NATIONS AND BY 40 TO 14 TOWARD NATO MINOR MEMOS THE PUBLIC FEELS EQUALLY CONFIDENT IN THE HEALTH IDEAS OF CLINTON AND THE AMERICAN MEDICAL ASSOCIATION BUT FAVOR CLINTON'S VIEWS 2 TO 1 OVER THOSE OF HEALTH INSURERS IN THE POLL NEGATIVE VIEWS OF VIRGINIA GOP SENATE CANDIDATE OLIVER NORTH EXCEED POSITIVE FEELINGS BY 38 TO 30 9403110033 940311 BUSINESS BRIEF CHEMDESIGN CORP PLAN IS SET FOR TENDER OFFER BY SUBSIDIARY OF BAYER UNIT CHEMDESIGN CORP AND MILES INC A WHOLLY OWNED SUBSIDIARY OF BAYER AG SAID THEY HAVE EXECUTED AN AGREEMENT IN WHICH A WHOLLY OWNED SUBSIDIARY OF MILES WILL COMMENCE A TENDER OFFER FOR ALL ISSUED AND OUTSTANDING SHARES OF CHEMDESIGN COMMON STOCK AT 850 A SHARE IN TRADING ON THE NASDAQ STOCK MARKET CHEMDESIGN CLOSED 27 HIGHER AT 825 A SHARE UP 175 IN HEAVY TRADING OF NEARLY 33 TIMES USUAL SHARE VOLUME THE COMPANIES SAID THAT FOLLOWING COMPLETION OF THE TENDER OFFER THE SUBSIDIARY WILL BE COMBINED WITH CHEMDESIGN AND EACH CHEMDESIGN COMMON SHARE NOT TENDERED WILL BE CONVERTED INTO THE RIGHT TO RECEIVE 850 IN CASH THE TRANSACTION INCLUDING ASSUMPTION OF DEBT IS VALUED AT 105 MILLION CHEMDESIGN FITCHBURG MASS DEVELOPS MAKES AND SELLS CUSTOM CHEMICALS MILES PITTSBURGH IS A RESEARCHBASED COMPANY WITH BUSINESS IN CHEMICALS HEALTH CARE AND IMAGING TECHNOLOGIES 9403110032 940311 BUSINESS BRIEF ITT CORP ACCORD IS SET TO BUY HOTELS IN PHOENIX SCOTTSDALE ARIZ ITT CORP NEW YORK SAID ITS HOTEL UNIT AGREED TO PURCHASE THE PHOENICIAN GOLF & TENNIS RESORT IN SCOTTSDALE ARIZ AND THE CRESCENT HOTEL IN PHOENIX ALTHOUGH TERMS WEREN'T DISCLOSED INDUSTRY OFFICIALS SAID ITT SHERATON CORP PURCHASED THE LUXURY HOTELS FOR ABOUT 250 MILLION FROM THE KUWAITI INVESTMENT OFFICE AN ARM OF THE KUWAITI GOVERNMENT THE PURCHASE INCLUDES 63 ACRES OF LAND 16 OF WHICH COULD IMMEDIATELY BE DEVELOPED LINCOLN SAVINGS & LOAN ASSOCIATION IRVINE CALIF CONTROLLED BY CHARLES KEATING'S AMERICAN CONTINENTAL CORP BUILT THE PHOENICIAN HOTEL WHICH INCLUDED NINE STEINWAY GRAND PIANOS IN THE MID1980S FOR ABOUT 275 MILLION IN TURN THE S&L SOLD A 45 INTEREST IN THE HOTEL TO THE INVESTMENT ARM OF THE KUWAITI GOVERNMENT FOR 170 MILLION IN 1991 THE KUWAITI GOVERNMENT PURCHASED THE REMAINING STAKE IN THE PHOENICIAN ALONG WITH THE CRESCENT FOR 1115 MILLION FROM THE RESOLUTION TRUST CORP AT THE TIME GOVERNMENT OFFICIALS SAID THEY HAD A LOSS OF ABOUT 675 MILLION ON THE TRANSACTION 9403110031 940311 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 ASSOCIATES CORP 300 MILLION ISSUE OF NOTES DUE MARCH 15 1999 PRICED AS 625S AT 99779 TO YIELD 6302 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 DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC ASSOCIATES IS A UNIT OF FORD MOTOR CO CHARTWELL RE CORP 75 MILLION OF SENIOR NOTES DUE MARCH 1 2004 PRICED INITIALLY AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE MARCH 24 1999 PRICED AS 515 AT PAR BY UNDERWRITERS LED BY FIRST CHICAGO CAPITAL MARKETS ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT 193 BASIS POINTS ABOVE 50 OF THE 10YEAR CONSTANT MATURITY TREASURY THE NOTES WILL FLOAT AND PAY QUARTERLY WITH THE RATE RESET 10 DAYS BEFORE THE NEXT QUARTER FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF NOTES DUE MARCH 18 1999 PRICED INITIALLY AT PAR TO YIELD 592 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE MARCH 21 2001 PRICED INITIALLY AT PAR TO YIELD 654 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR THREE YEARS AND WAS PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BAY APARTMENT COMMUNITIES INC INITIAL OFFERING OF 94 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO EATON CORP 35 MILLION COMMON SHARES PRICED AT 5850 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC GAYLORD ENTERTAINMENT CO 65 MILLION COMMON SHARES PRICED AT 26 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO OLYMPIC STEEL INC INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC TRANSTEXAS GAS CORP INITIAL PUBLIC OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 14 EACH THE MANAGER OF THE OFFERING IS JEFFERIES & CO MORGAN STANLEY EMERGING MARKETS FUND INC ONE MILLION SHARES PRICED AT 2750 EACH ACCORDING TO THE FUND THE OFFERING IS BEING UNDERWRITTEN BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1715 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS BANK NEDERLANDSE GEMEETEN NETHERLANDS 100 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE APRIL 15 2001 PRICED AT 10225 VIA BANCA DEL GOTTARDO FEES 25 CHUBU ELECTRIC POWER CO JAPAN 500 MILLION CANADIAN DOLLARS OF 7375 EUROBONDS DUE MARCH 30 2001 AT ISSUE PRICE 10055 VIA DAIWA EUROPE LTD SAKURA FINANCE INTERNATIONAL LTD AND WOOD GUNDY INC REOFFERED AT 99 TO YIELD 756 A MARGIN OF 50 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 CREDIT LOCAL DE FRANCE FRENCH AGENCY 60 MILLION ECUS OF 6 EUROBONDS DUE SEPT 20 1998 AT ISSUE AND REOFFER PRICE 99801 VIA KIDDER PEABODY SECURITIES LTD AND SWISS BANK CORP BONDS TO TRADE INTERCHANGEABLY WITH 175 MILLION ECUS OF IDENTICAL BONDS OUTSTANDING BONDS YIELD 604 FEES UNDISCLOSED DSL FINANCE NV GERMAN PARENT 250 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE APRIL 15 2004 AT ISSUE PRICE 10045 VIA NIBSTRATING FINANCIAL MARKETS REOFFERED AT 997 TO YIELD 629 A MARGIN OF 196 BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN GUARANTOR DSL BANK FEES ONE INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 150 MILLION OF 7125 EUROBONDS DUE NOV 26 2004 AT ISSUE PRICE 100675 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND DAIWA EUROPE LTD REOFFERED AT 99 TO YIELD 726 A SPREAD OF 15 BASIS POINTS ABOVE COMPARABLE UK GILT FEES TWO NEDERLANDSE GASUNIE NV NETHERLANDS 125 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE APRIL 15 1999 PRICED AT 102875 VIA ABN AMRO BANK SCHWEIZ FEES TWO SWEDEN SOVEREIGN 3 BILLION OF FLOATINGRATE EURONOTES DUE OCTOBER 1995 AT ISSUE PRICE PAR VIA CS FIRST BOSTON INC PAYABLE QUARTERLY AT 01875 POINT BELOW THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 009 TOA CORP JAPAN 150 MILLION OF 125 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 31 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT 25 INDICATED PREMIUM FROM APRIL 14 TO MARCH 24 1998 GUARANTOR FUJI BANK FEES 225 LESS 015 FOR LEAD MANAGER 9403110030 940311 TECHNOLOGY BRIEF 3DO CO TWO NEW MAKERS LICENSED VIDEOGAME MACHINES REDWOOD CITY CALIF THE 3DO CO TAKING MORE STEPS TO PERK UP SALES OF ITS PRICEY VIDEOGAME PLAYERS LICENSED TWO NEW MANUFACTURERS AND SET PLANS TO MAKE THE MACHINES COMPATIBLE WITH MORE SOFTWARE THE TWO NEW LICENSEES ARE GOLDSTAR CO AND SAMSUNG ELECTRONICS LTD BUT IN A PRESS RELEASE 3DO SAID THE TWO COMPANIES HAVE NOT ANNOUNCED SPECIFIC PLANS AT THIS TIME FOR MANUFACTURING OR MARKETING CURRENTLY THE ONLY COMPANY MANUFACTURING THE MACHINES IS MATSUSHITA ELECTRIC INDUSTRIAL CO ON THE SOFTWARE SIDE 3DO SAID IT REACHED A PRELIMINARY AGREEMENT WITH CREATIVE TECHNOLOGY LTD OF SINGAPORE TO JOINTLY DEVELOP A CARD THAT ALLOWS PERSONAL COMPUTERS TO RUN SOFTWARE WRITTEN FOR 3DO GAME PLAYERS CREATIVE TECHNOLOGY WOULD LICENSE MANUFACTURE AND MARKET THE CARD ALSO 3DO FORMED A UNIT TO DEVELOP PUBLISH AND DISTRIBUTE SOFTWARE TITLES INCLUDING TITLES BY THIRDPARTY VENDORS THAT TAKE ADVANTAGE OF GRAPHICS AND INTERACTIVE FEATURES OF 3DO PLAYERS 9403110029 940311 PEPPERAND SALT THE GUY HAS TAKEN ROOT CAN STILL MAKE STUPID DECISIONS 9403110028 940311 BUSINESS BRIEF DAYTON HUDSON CORP RETAILER POSTS 12 INCREASE IN FOURTHQUARTER EARNINGS DAYTON HUDSON CORP SAID FISCAL FOURTHQUARTER EARNINGS ROSE 12 REFLECTING BETTER PERFORMANCES IN ITS DISCOUNT AND UPSCALE DEPARTMENT STORE CHAINS AND AN INTERNAL ACCOUNTING CHANGE FOR THE QUARTER ENDED JAN 29 THE MINNEAPOLIS RETAILER REPORTED NET INCOME OF 278 MILLION OR 381 A SHARE COMPARED WITH 249 MILLION OR 339 A SHARE A YEAR EARLIER REVENUE ROSE 6 TO 628 BILLION THE EARNINGS BENEFITED FROM A CHANGE THE COMPANY MADE IN ITS LIFO INVENTORY ACCOUNTING PRACTICES THE CHANGE RESULTED IN A 107 MILLION LIFO INVENTORY CREDIT IN THE FOURTH QUARTER UNDER A DIFFERENT LIFO SYSTEM A YEAR AGO DAYTON HUDSON RECORDED A 22 MILLION FOURTH QUARTER LIFO CREDIT THE COMPANY DECLINED TO DISCLOSE WHAT THIS YEAR'S CREDIT WOULD HAVE BEEN WITHOUT THE ACCOUNTING CHANGE FOR THE YEAR NET FELL 2 TO 375 MILLION OR 499 A SHARE FROM 383 MILLION OR 502 A SHARE REVENUE ROSE 7 TO 1923 BILLION DAYTON HUDSON SAID OPERATING PROFITS IN ITS TARGET DISCOUNT STORES AND ITS UPSCALE DEPARTMENT STORE DIVISION INCREASED FOR THE FULL YEAR BY 15 AND 18 RESPECTIVELY BUT OPERATING EARNINGS AT ITS TROUBLED MERVYN'S STORES DECLINED 37 9403110027 940311 MARKETING & MEDIA ADVERTISING SAATCHI STRUGGLES TO HALT ITS FALL FROM GRACE AS REVENUE DECLINES BY JUDITH VALENTE LONDON IN ITS HEYDAY SAATCHI & SAATCHI CO'S ADVERTISING CAMPAIGNS PROPELLED MARGARET THATCHER'S POLITICAL CAREER GAVE A FRESH IMAGE TO BRITISH AIRWAYS PLC AND MADE TOYOTA MOTOR CORP'S LEXUS A HOUSEHOLD NAME SO WHY CAN'T SAATCHI & SAATCHI SELL ITSELF THE ONETIME GLOBAL ADVERTISING LEADER EXPECTS REVENUE TO DROP THIS YEAR DESPITE IMPROVING ADVERTISING MARKETS IN THE US AND UNITED KINGDOM ITS MAJOR VENUES RESULTS FOR 1993 WHICH SAATCHI WILL ANNOUNCE TUESDAY WILL BE LOWER THAN ANTICIPATED THE COMPANY HAS SAID ADD TO THIS MANAGEMENT SHAKEUPS BOARDROOM TURMOIL AND THE LOSS OF TWO MAJOR US CLIENTS IN JUST 12 MONTHS SAATCHI'S WORST PROBLEMS ARE IN THE US WHICH ACCOUNTS FOR 45 OF ITS BUSINESS EARLIER THIS MONTH THE COMPANY DISPATCHED WILLIAM MUIRHEAD FORMERLY CHIEF EXECUTIVE OF ITS LONDON ADVERTISING UNIT TO NEW YORK TO INJECT NEW LIFE INTO ITS CRUCIAL UNPROFITABLE NORTH AMERICAN OPERATIONS MR MUIRHEAD'S CREATIVE TEAM IN LONDON DREAMED UP BRITISH AIR'S WORLD'S FAVORITE AIRLINE SLOGAN UNDER MR MUIRHEAD SAATCHI WON MORE NEW BUSINESS THAN ANY OTHER UK AGENCY BETWEEN 1987 AND 1993 SAATCHI IS HOPING THE GREGARIOUS AUSTRALIAN CAN WORK THE SAME MAGIC IN THE US WHERE THE COMPANY RECENTLY LOST ITS ACCOUNTS WITH AUTO MAKER CHRYSLER CORP AND HELENE CURTIS INDUSTRIES INC THE PERSONALCARE PRODUCTS MAKER SO ARE SHAREHOLDERS WHO HAVE SEEN THE STOCK DROP A WHOPPING 97 SINCE 1986 EVEN ADJUSTING FOR A RECAPITALIZATION AND RIGHTS ISSUE TO A LOW OF 134 PENCE 2 A SHARE LAST DECEMBER FROM A HIGH BACK THEN OF 5222 78 SAATCHI'S STOCK CLOSED AT 146 PENCE UP 4 PENCE IN YESTERDAY'S TRADING ON THE LONDON STOCK EXCHANGE MR MUIRHEAD REPLACES ROBERT KENNEDY A LONGTIME SAATCHI EXECUTIVE WHOM THE FIRM OUSTED IN JANUARY WITH A 4 MILLION PAYOFF AFTER HE FAILED TO ENGINEER A TURNAROUND EARLIER THIS YEAR SAATCHI INSTALLED A NEW CHIEF EXECUTIVE AND A NEW CREATIVE DIRECTOR AT ITS OTHER MAIN US UNIT THE BACKER SPIELVOGEL BATES AGENCY HERE IN LONDON UNCERTAINLY SHROUDS THE FUTURE OF THE MEN WHO FOUNDED SAATCHI 24 YEARS AGO BROTHERS CHARLES AND MAURICE SAATCHI CHARLES SAATCHI 50 YEAR OLD LEFT THE BOARD IN DECEMBER MR SAATCHI MASTERMINDED SAATCHI'S PUSH TO BECOME A GLOBAL CONCERN AND PLAYED A PART IN DEVISING SOME OF ITS MOST FAMOUS AD CAMPAIGNS INCLUDING THE BRITISH AIR ADS CHARLES SAATCHI IS SAID TO HAVE LOST INTEREST IN THE COMPANY NOW THAT IT IS RETRENCHING HE IS NOW HONORARY PRESIDENT BUT THE BOARD HAS HALVED HIS SALARY TO 312000 COMPANY OFFICIALS SAY MR SAATCHI WAS ALWAYS MORE INTERESTED IN THE BUSINESS' CREATIVE SIDE THAN THE NUTSANDBOLTS MANAGING HE NEVER ATTENDED SHAREHOLDER MEETINGS SO HIS ABSENCE ON THE BOARD DOESN'T MARK A MAJOR SHIFT WITH SAATCHI'S ACQUISITIONS HEYDAY OVER MR SAATCHI HAS TURNED HIS ATTENTION TO ACQUIRING ART HE OWNS A LARGE LONDON GALLERY AND HIS FAMOUS PERSONAL COLLECTION INCLUDES SUCH PIECES AS A TIGER SHARK EMBALMED IN A TANK OF FORMALDEHYDE MAURICE SAATCHI 47 REMAINS CHAIRMAN BUT HIS POSITION TOO IS IN QUESTION THE BOARD RECENTLY DIRECTED THE BROTHERS TO VACATE THEIR ELEGANT ARTLADEN OFFICES OVERLOOKING LONDON'S BERKELEY SQUARE THE BOARD COMPLAINED THE SUITE WAS COSTING THE COMPANY 12 MILLION A YEAR THE SAATCHIS WERE TOLD THEY MUST MOVE IN WITH THE REST OF SAATCHI'S LONDON STAFF IN A PLAIN 1960SVINTAGE BUILDING IN A COMMERCIAL PART OF TOWN MAURICE AND CHARLES SAATCHI DECLINED INTERVIEWS SAATCHI'S PROBLEMS STEM FROM OVEREXPANSION IN THE 1980S BY 1990 IT HAD RACKED UP 666 MILLION IN DEBT AFTER GOBBLING UP COMPANIES FROM A FINANCIALSERVICES FIRM TO A JURYSELECTION SERVICE IN ITS DRIVE TO BECOME WORLD LEADER SAATCHI SCOOPED UP COMPETITORS THEN HAD DIFFICULTY MERGING CULTURES AND CLIENT LISTS CONSEQUENTLY SAATCHI DIDN'T ACHIEVE THE SAME COST SAVINGS AND SYNERGIES THAT MERGERS HELPED CREATE IN OTHER INDUSTRIES SAATCHI WENT FROM FAST GROWTH TO NO GROWTH TO DECLINE IT'S A PERFECT EXAMPLE OF THE MISTAKES OF THE '80S SAYS ANTHONY SIMMONDSGOODINGS A FORMER TOP EXECUTIVE AT SAATCHI NOW WITH THE STILL PRICE LINTAS AGENCY IN LONDON SAATCHI HAS SPENT THE LAST FEW YEARS SHEDDING BUSINESSES THAT DON'T RELATE TO ADVERTISING IT UNDERWENT A MAJOR RECAPITALIZATION IN 1991 AND RAISED 73 MILLION IN A 1993 RIGHTS OFFERING TO FURTHER REDUCE ITS DEBT BOTH MEASURES HELPED IT REDUCE DEBT TO ITS CURRENT LEVEL OF 130 MILLION AND SHORED UP ITS CORE BUSINESSES STILL RESULTS HAVE BEEN DISAPPOINTING IN 1992 THE COMPANY HAD A LOSS OF 6137 MILLION ON REVENUE OF 395 BILLION FOR 1993 ANALYSTS EXPECT THE COMPANY TO REPORT PRETAX PROFIT OF ABOUT 18 MILLION BUT THAT WILL BE DUE ENTIRELY TO CURRENCY MOVEMENTS RATHER THAN ANY GROWTH IN THE UNDERLYING REVENUE SAYS CHARLES SCOTT THE FINANCE MAN TAPPED AS CHIEF EXECUTIVE IN 1992 WITH A MANDATE TO STRENGTHEN THE BALANCE SHEET THE OUTLOOK THIS YEAR IS FOR A FALL IN REVENUE MR SCOTT SAYS THE 1994 RESULTS WILL REFLECT A LOSS OF ABOUT 30 MILLION IN BUSINESS FROM CHRYSLER AND HELENE CURTIS DISPOSAL OF TWO SUBSIDIARIES FURTHER WILL REDUCE REVENUE BY 20 MILLION THE COMPANY SAYS ANALYSTS ARE PROJECTING 1994 PRETAX PROFIT OF ABOUT 33 MILLION BUT THAT NUMBER MAY HAVE TO BE REVISED DOWNWARD IF BUSINESS DOESN'T PICK UP IN THE US WARNS GUY LAMMING AN ANALYST AT LONDON'S JAMES CAPEL & CO OUTSIDE DIRECTOR THEODORE LEVITT A PROFESSOR AT HARVARD UNIVERSITY BUSINESS SCHOOL SAYS SAATCHI IS GOING THROUGH A NATURAL SHAKEOUT FOR A COMPANY THAT GREW RAPIDLY IT WAS EVIDENT THINGS HAD TO BECOME MUCH MORE PROFESSIONALLY MANAGED HE SAYS HE SAYS THE FULL EFFECT OF THE RECAPITALIZATION AND RESTRUCTURING WILL BECOME MORE EVIDENT IN THE NEXT FEW YEARS SAATCHI RETAINS MAJOR STRENGTHS NOT THE LEAST OF WHICH IS ITS IMPRESSIVE CLIENT LIST SAATCHI REPRESENTS PROCTER & GAMBLE CO THE HOME AND PERSONALCARE PRODUCTS MAKER WENDY'S INTERNATIONAL THE HAMBURGER CHAIN GENERAL MILLS THE US FOOD COMPANY AND PHILIP MORRIS COS THE FOOD AND CIGARETTE CONCERN SAATCHI IS TRYING TO ATTRACT NEW CLIENTS IN GROWING MARKETS SUCH AS CHINA AND EASTERN EUROPE AND WIN NEW BUSINESS FOR ZENITH MEDIA A UNIT THAT ADVISES ADVERTISERS AS THEY ARE NEGOTIATING FEES FOR TELEVISION OR PRINT ADVERTISING BUT IT BADLY NEEDS TO WIN SEVERAL BIG REVENUE PRODUCING ACCOUNTS SOON I AM MAKING THIS MY PRIME RESPONSIBILITY MR SCOTT SAYS TBWA ADVERTISING A UNIT OF OMNICOM GROUP HAS COLLECTED 13 YEARS OF ADVERTISING FOR ABSOLUT VODKA INTO AN INTERACTIVE ELECTRONIC VIRTUAL MUSEUM ADMISSION IS 2995 THAT'S HOW MUCH A SET OF THREE COMPUTER DISKETTES CONTAINING 216 ABSOLUT PRINT ADS COSTS CONSUMERS CAN ORDER THEM THROUGH A TOLLFREE NUMBER PROMOTED IN A NEW PRINT AD CALLED ABSOLUT MUSEUM OR ELECTRONICALLY THROUGH THE COMPUSERVE ONLINE NETWORK A UNIT OF H&R BLOCK COMPUSERVE USERS ALSO CAN BROWSE THROUGH A PORTION OF THE MUSEUM FOR FREE NET PROCEEDS FROM THE DISKETTE SALES GO TO THE AMERICAN FOUNDATION FOR AIDS RESEARCH THE AGENCY AND ITS CLIENTS BRAND OWNER V&S VIN & SPRIT OF SWEDEN AND SEAGRAM CO WHICH ACQUIRED DISTRIBUTION RIGHTS LAST MONTH ARE PRODUCING 10000 SETS OF THE DISKETTES THE INTERACTIVE THREEDIMENSIONAL SOFTWARE WAS DESIGNED BY INTERACTIVE MARKETING GROUP NEW YORK A UNIT OF WPP GROUP'S OGILVY & MATHER DIRECT USING TBWA'S ADS THE ABSOLUT MUSEUM WILL BECOME AVAILABLE ON COMPUSERVE'S ELECTRONIC MALL ON TUESDAY PRINT ADS FOR THE DISKETTES BEGIN THIS MONTH IN ENTERTAINMENT WEEKLY AND NEW YORK MAGAZINES WAR HAS BROKEN OUT AGAIN BETWEEN KAPLAN EDUCATIONAL CENTERS A UNIT OF WASHINGTON POST CO AND PRINCETON REVIEW JUST NINE MONTHS AFTER THE TWO BITTER RIVALS IN THE EDUCATIONAL TESTCRAMMING BUSINESS SIGNED A TRUCE IN JUNE THE COMPANIES SIGNED AN UNUSUAL 23PAGE ACCORD IN WHICH THEY AGREED NOT TO LIE ABOUT EACH OTHER OR THEMSELVES IN THEIR ADS AND MARKETING BROCHURES THEY HAD AGREED NOT TO CLAIM THEIR PREPARATION COURSES IMPROVED TEST SCORES UNLESS THEY WERE BACKED BY A REPRESENTATIVE STUDY THE PACT ALSO SET OTHER RULES INCLUDING PROVISIONS FOR ARBITRATING COMPLAINTS ABOUT ALLEGEDLY FALSE ADS IN THE FUTURE PRIOR TO THE TRUCE THE TWO COMPANIES HAD BEEN TRADING ACCUSATIONS FOR YEARS ON MONDAY HOWEVER PRINCETON REVIEW FILED SUIT IN FEDERAL COURT IN NEW YORK SEEKING TO STOP KAPLAN FROM IMPLYING IN NEW ADS THAT ITS COURSES FOR FOUR GRADUATE SCHOOL ADMISSION TESTS ARE EFFECTIVE IN RAISING STUDENTS' SCORES YESTERDAY A JUDGE DECLINED TO ISSUE AN INJUNCTION SOUGHT BY PRINCETON REVIEW AGAINST NEW KAPLAN ADS IN US NEWS & WORLD REPORT GREG RORKE KAPLAN'S PRESIDENT SAID WE ARE SATISFIED THAT THE ADS ARE FAIR AND ACCURATE JOHN KATZMAN PRINCETON REVIEW'S PRESIDENT SAID KAPLAN HAD AGREED IN COURT TO PUT A DISCLAIMER IN THE NEW AD BUT KAPLAN OFFICIALS COULDN'T CONFIRM THE CLAIM IN ANY CASE MR KATZMAN SAID HIS COMPANY PLANS TO CONTINUE ITS LEGAL ACTION 9403110026 940311 BUSINESS BRIEF STAODYN INC COMPANY POSTS WIDER LOSS FOR QUARTER ENDED FEB 28 STAODYN INC SAID POOR WEATHER AND THE CALIFORNIA EARTHQUAKE AS WELL AS COMPUTER GLITCHES WOULD RESULT IN WIDER FIRSTQUARTER LOSSES THAN A NET LOSS OF 686000 OR 18 CENTS A SHARE FOR THE SAME PERIOD A YEAR EARLIER THE MAKER OF ELECTROTHERAPEUTIC MEDICAL DEVICES SAID SALES AND EARNINGS FOR THE QUARTER ENDED FEB 28 ALSO WOULD BE DOWN SUBSTANTIALLY FROM THE FOURTH QUARTER OF 1993 WHEN THE COMPANY POSTED LOSSES OF ALMOST 82000 OR TWO CENTS A SHARE ON REVENUE OF 41 MILLION STAODYN LONGMONT COLO SAID WINTER WEATHER AND THE EARTHQUAKE AFFECTED PATIENTS' ABILITY TO VISIT REHABILITATION AND PHYSICAL THERAPY CLINICS IN ADDITION PROBLEMS IN CONVERTING TO A NEW COMPUTER SYSTEM AT THE COMPANY'S TMD RETAIL OPERATIONS IN TAMPA FLA RESULTED IN HIGHER EXPENSES AND TEMPORARY REVENUE LOSS STAODYN SAID THE COMPUTER SYSTEM IS NOW ONLINE IN ADDITION THE COMPANY SAID IT EXTENDED THE EXPIRATION DATE OF ITS WARRANTS OUTSTANDING TO FEB 28 1995 FROM JUNE 19 1994 LAST YEAR THE COMPANY EXTENDED THE EXPIRATION DATE OF THE WARRANTS FROM JUNE 19 1993 9403110025 940311 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 3 3/16 LOW 3 3/16 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 350 30 TO 44 DAYS 353 45 TO 59 DAYS 365 60 TO 69 DAYS 370 70 TO 89 DAYS 375 90 TO 119 DAYS 380 120 TO 149 DAYS 385 150 TO 179 DAYS 395 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 360 30 DAYS 373 60 DAYS 383 90 DAYS CERTIFICATES OF DEPOSIT 294 ONE MONTH 301 TWO MONTHS 317 THREE MONTHS 341 SIX MONTHS 367 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 353 ONE MONTH 375 THREE MONTHS 4 SIX MONTHS BANKERS ACCEPTANCES 348 30 DAYS 362 60 DAYS 372 90 DAYS 382 120 DAYS 391 150 DAYS 395 180 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 587 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 7 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 352 13 WEEKS 375 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 772 60 DAYS 778 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 769 60 DAYS 778 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 570 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 278 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403110024 940311 WHAT'S NEWS BUSINESS AND FINANCE NORTHROP LAUNCHED A HOSTILE 204 BILLION BID TO PURCHASE GRUMMAN WHICH HAS AGREED TO BE ACQUIRED BY MARTIN MARIETTA FOR 193 BILLION NORTHROP WHICH FAILED IN THREE AEROSPACEACQUISITION ATTEMPTS IN THE PAST TWO YEARS SEEMED TO FACE A STARK CHOICE IN THE RAPIDLY CONSOLIDATING DEFENSE INDUSTRY BUY OR BE BOUGHT IN AFTERHOURS TRADING GRUMMAN STOCK SURGED MORE THAN 8 INDICATING THAT TRADERS EXPECT A BIDDING WAR BOND AND STOCK PRICES TUMBLED PULLED DOWN BY CLINTON'S POLITICAL TROUBLES THE DOW JONES INDUSTRIAL AVERAGE SLID 2279 TO 383062 THE TREASURY'S 30YEAR ISSUE SANK MORE THAN 1 5/8 PUSHING ITS YIELD TO 698 GOLD FUTURES JUMPED WHILE THE DOLLAR HIT A FOURMONTH LOW AGAINST THE MARK ADVANCED MICRO DEVICES DIDN'T INFRINGE ON INTEL PATENTS A FEDERAL JURY DECIDED IN THE RETRIAL OF A COPYRIGHT BATTLE BETWEEN THE CHIP MAKERS THE RULING COULD ACCELERATE PRICE CUTS ON CHIPS AND PERSONAL COMPUTERS NEXGEN MICROPRODUCTS PLANS TO UNVEIL MONDAY WHAT AMOUNTS TO THE FIRST CLONE OF INTEL'S PENTIUM CHIP MOTOROLA RESOLVED A DISPUTE WITH A JAPANESE CELLULARTELEPHONE COMPANY STRIKING A PACT LIKELY TO PREVENT US TRADE SANCTIONS AGAINST JAPAN INDIVIDUALS CLOSE TO THE DISCUSSIONS SAID DELOITTE & TOUCHE IS CLOSE TO AN AGREEMENT WITH REGULATORS TO PAY OVER 300 MILLION TO RESOLVE CHARGES RELATED TO ITS WORK FOR FAILED THRIFTS PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID A SETTLEMENT OF THAT SIZE WOULD BE THE SECOND LARGEST AGAINST PROVIDERS OF SERVICES TO THRIFTS THAT LATER COLLAPSED SOUTHWESTERN BELL IS RENEGOTIATING FINANCIAL TERMS OF ITS 49 BILLION CABLE VENTURE WITH COX ENTERPRISES MAKING IT THE LATEST DEAL TO BE JOLTED BY THE NEW CABLERATE ROLLBACKS THE NEW DEAL PROBABLY WILL CUT SOUTHWESTERN'S PLANNED 16 BILLION CASH OUTLAY THE SEC IS INVESTIGATING WHETHER STRONG/CORNELIUSON CAPITAL MANAGEMENT IMPROPERLY SHIFTED SECURITIES AMONG ITS FUNDS HELPING ONE FUND TO THE DETRIMENT OF ANOTHER PEOPLE FAMILIAR WITH THE INVESTIGATION SAID BANKING REGULATORS PLAN TO FORCE BANKS TO DISCLOSE MORE INFORMATION ABOUT DEALINGS IN THE BOOMING BUT LITTLEUNDERSTOOD DERIVATIVES MARKET CEMENT MAKERS ARE BEING INVESTIGATED BY JUSTICE OFFICIALS OVER POSSIBLE PRICE FIXING AND MARKET ALLOCATION JOHN SCULLEY AND SPECTRUM INFORMATION DROPPED THEIR SUITS AGAINST EACH OTHER THOUGH A SHAREHOLDER GROUP CONTINUES TO SUE BOTH OF THEM SAVINGSANDLOAN ASSOCIATIONS EARNED 119 BILLION IN THE FOURTH QUARTER OF 1993 A 53 INCREASE FROM THE 777 MILLION A YEAR EARLIER THE OFFICE OF THRIFT SUPERVISION REPORTED RENTTOOWN FIRMS WERE DEALT A SETBACK WHEN WISCONSIN'S HIGHEST COURT RULED THAT SUCH CONCERNS MUST REVEAL THE STRAIGHT CASH PRICE FOR GOODS THE EFFECTIVE ANNUAL INTEREST RATES ON RENTALS AND TOTAL COST TO CONSUMERS MINNESOTA MINING'S DECISION LAST FALL NOT TO JOIN A GLOBAL SETTLEMENT OF SILICONE BREASTIMPLANT CASES COULD PROVE ESPECIALLY COSTLY FOLLOWING A HUGE VERDICT AGAINST THE COMPANY DOW JONES PLANS TO PROVIDE EIGHT LATIN AMERICAN NEWSPAPERS WITH A WEEKDAY SPANISHLANGUAGE INTERNATIONAL BUSINESSNEWS SECTION BONDS LEHMAN BROTHERS TREASURY INDEX 526629 OFF 6720 COMMODITIES OIL 1414 A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX 14523 UP 077 SPOT INDEX 13130 UP 026 DOLLAR 10525 YEN OFF 055 16825 MARKS OFF 00200 9403110023 940311 BUSINESS BRIEF METROPOLITAN LIFE INSURANCE CO TEXAS REGULATORS INDICATE POSSIBILITY OF MORE REFUNDS TEXAS INSURANCE REGULATORS HAVE ASKED METROPOLITAN LIFE INSURANCE CO TO REFUND PREMIUMS TO AS MANY AS 100000 LIFE INSURANCE POLICYHOLDERS UNLESS THE COMPANY CAN PROVE THEY WEREN'T DEFRAUDED UNDER A MULTISTATE AGREEMENT ANNOUNCED LAST WEEK TO SETTLE CHARGES OF FRAUDULENT SALES PRACTICES MET AGREED TO REFUND PREMIUMS TO 60000 POLICYHOLDERS NATIONWIDE UNDER THE FORMULA USED TO CALCULATE THE NUMBER OF ELIGIBLE POLICYHOLDERS IN EACH STATE ONLY 3000 TEXAS RESIDENTS QUALIFIED TEXAS INSURANCE COMMISSIONER ROBERT HUNTER SAID AS MANY AS 97000 MORE POLICYHOLDERS IN TEXAS ALMOST EVERY INDIVIDUAL WHO BOUGHT A WHOLELIFE INSURANCE POLICY FROM MET BETWEEN 1988 AND 1993 MIGHT HAVE BEEN DEFRAUDED I'VE ASKED MET TO PROVIDE PROOF THAT THE REMAINING 97000 WERE NOT MISLED MR HUNTER SAID WE WILL CONTINUE WORKING WITH THE DEPARTMENT IN THE HOPES OF ARRIVING AT A SPEEDY RESOLUTION OF THE ISSUE SAID A MET SPOKESMAN WE'VE ALREADY PLEDGED THAT NOT ONE OF OUR POLICYHOLDERS WILL BE HURT FINANCIALLY BECAUSE OF THIS SITUATION ABOUT 30 STATES HAVE AGREED TO THE MULTISTATE RESOLUTION TO SETTLE THE CHARGES AGAINST MET TEXAS IS THE LARGEST HOLDOUT 9403110022 940311 SINGAPORE AIRLINES PURSUES OPPORTUNITY IN CHINA INDIA TO SHORE UP PROFITABILITY BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE WHAT DOES A TOP INTERNATIONAL AIRLINE DO TO STAVE OFF SHRINKING PROFITS SINGAPORE AIRLINES LTD FOR ONE IS SETTING A COURSE FOR ASIA'S FLEDGLING AVIATION MARKETS GOVERNMENTCONTROLLED PUBLICLY TRADED SIA THE GRANDE DAME AMONG ASIA'S NATIONAL CARRIERS HASN'T BEEN IMMUNE TO THE HARD TIMES AFFLICTING THE GLOBAL AVIATION INDUSTRY WITH OPERATIONAL COSTS RISING AT HOME AND COMPETITION FIERCE ON ITS MAINSTAY LONGHAUL ROUTES THE AIRLINE IS EXPECTED TO REPORT A SECOND CONSECUTIVE ANNUAL DECLINE IN PROFIT FOR THE YEAR ENDING MARCH 31 LIKE MANY OF ITS RIVALS SIA HAS BEEN SNIFFING OUT COST CUTS AND TRIMMING FARES AT THE SAME TIME HOWEVER IT'S MOVING INTO POTENTIALLY HIGHGROWTH REGIONAL MARKETS PURSUING STAKES IN AIRLINES IN CHINA INDIA AND INDOCHINA AND MARKETING ITS AIRLINE AND SUPPORTSERVICES EXPERTISE THROUGHOUT THE REGION WE'RE VERY ACTIVE WE ARE PURSUING TALKING SOUNDING OUT OPPORTUNITIES SAYS MICHAEL TAN SIA'S DEPUTY MANAGING DIRECTOR IN AN INTERVIEW THE STRATEGY MAY PARTLY REFLECT SIA'S RESPONSE TO THE SINGAPORE GOVERNMENT'S CAMPAIGN TO PROD LOCAL COMPANIES TO SEEK OPPORTUNITIES IN THE BOOMING ASIANPACIFIC REGION BUT AS ANALYSTS POINT OUT IT ALSO MAKES SENSE FOR A COMPANY STRIVING TO SHORE UP LONGTERM PROFITABILITY AMID LINGERING RECESSIONS IN JAPAN AND EUROPE AND BALLOONING COSTS AT HOME THEY'RE MOVING TO CAPITALIZE IN AREAS OF THE AVIATION INDUSTRY WHERE THERE IS INTRINSIC STRENGTH SAYS PATRICK RUSSELL SG WARBURG SINGAPORE SIA'S SHARES HAVE GENERALLY TRACKED THE DOWNWARD TREND ON THE SINGAPORE MARKET SINCE THE START OF THE YEAR CLOSING WEDNESDAY AT S760 US480 DOWN 84 FROM THEIR HIGH SO FAR THIS YEAR OF S830 REACHED ON JAN 5 THOUGH ANALYSTS GENERALLY EXPECT THE SHARES TO UNDERPERFORM THE MARKET IN THE COMING YEAR MR RUSSELL SAYS IF YOU'RE AN AIRLINE INVESTOR IT'S ONE OF THE BEST AROUND IN CHINA SIA IS HOLDING TALKS WITH MUNICIPAL AND PROVINCIAL GOVERNMENTS AS WELL AS AIRLINE OFFICIALS ABOUT BUYING INTO ONE OR MORE MAINLAND CARRIERS COMPANY EXECUTIVES RECENTLY MET OFFICIALS IN SICHUAN PROVINCE TO DISCUSS POSSIBLE PARTNERSHIPS THERE INDUSTRY SOURCES SAY SIA ALSO IS KEEN TO TAKE STAKES IN GUANGZHOUBASED CHINA SOUTHERN AIRLINES AND SHANGHAIBASED CHINA EASTERN AIRLINES BOTH OF WHICH ARE EXPECTED TO LIST THEIR SHARES ON OVERSEAS STOCK MARKETS LATER THIS YEAR AND IN INDIA SIA HAS BEEN TALKING ABOUT SETTING UP A PRIVATE DOMESTIC AIRLINE SINCE THE GOVERNMENT'S DECISION LAST YEAR TO OPEN THE COUNTRY'S SKIES TO FOREIGN INVESTORS IN JOINT VENTURES WITH LOCAL PARTNERS INDUSTRY SOURCES SAY THAT AMONG SIA'S POTENTIAL PARTNERS ARE THE TATA GROUP AND ITC LTD A CONGLOMERATE WITH INTERESTS IN CIGARETTES AND HOTELS SIA SEES CHINA AND INDIA AS THE NEXT GREAT FRONTIERS THESE TWO MARKETS OFFER TREMENDOUS POTENTIAL FOR AVIATION SAYS MR TAN THE FIRST LEG OF SIA'S JOURNEY INTO REGIONAL MARKETS BEGAN IN NOVEMBER WHEN THE COMPANY AGREED TO ACQUIRE A 40 STAKE IN ROYAL AIR CAMBODGE WHICH IS EXPECTED TO TAKE TO THE SKIES IN JULY THE REST OF THE NEW AIRLINE'S EQUITY WILL BE HELD BY THE CAMBODIAN GOVERNMENT AND PRIVATE CAMBODIAN INVESTORS SIA WHICH EXPECTS TOURISM TO TAKE OFF IN CAMBODIA IS MAKING AN INITIAL INVESTMENT OF S10 MILLION US63 MILLION IN RAC WILL GET FOUR SEATS ON THE AIRLINE'S 10SEAT BOARD AND WILL FILL SENIOR MANAGEMENT POSITIONS IT ALSO WILL TRAIN CABIN CREWS AND RESERVATIONS STAFF AND SUPPLY PILOTS AND COMPUTER SYSTEMS RAC WILL INITIALLY FLY ROUTES BETWEEN PHNOM PENH AND SINGAPORE BANGKOK AND HONG KONG WE'LL MAKE IT A FULLFLEDGED AIRLINE SAYS MR TAN SHELDON KASOWITZ A DIRECTOR AT JARDINE FLEMING ASIA RESEARCH LTD IN HONG KONG WHO TRACKS SIA THINKS THAT IF THE AIRLINE FOLLOWS THROUGH WITH MORE DEALS LIKE THE ONE IN CAMBODIA REWARDS WILL BE GREAT THEY COULD END UP TAKING STAKES IN SIX OR EIGHT AIRLINES HE SAYS IF 80 WORK OUT IT'S VERY GOOD DEBTFREE AND CASHFLUSH SIA IS LIKELY TO MAINTAIN ITS POSITION AMONG THE WORLD'S MOST PROFITABLE AIRLINES IN THE LONG TERM ANALYSTS SAY BUT IT WON'T BE IMMUNE TO INDUSTRY PRESSURES IN THE SHORT TERM SIA IS NOT TOTALLY ABLE TO SWIM AGAINST THE TIDE SAYS MR RUSSELL OF SG WARBURG SIA'S PROFIT SLUMPED TO S8506 MILLION IN THE YEAR ENDED MARCH 31 1993 FROM S928 MILLION THE PREVIOUS YEAR ANALYSTS PREDICT SIA WILL REPORT A FURTHER DECLINE IN PROFIT TO S820 MILLION FOR THE YEAR THAT ENDS MARCH 31 SIA'S YIELD OR REVENUE EARNED ON EVERY METRIC TON FLOWN ONE KILOMETER A LEADING YARDSTICK OF AN AIRLINE'S HEALTH DROPPED 105 LAST YEAR AND IS EXPECTED TO FALL FURTHER FOR THE CURRENT YEAR THAT REFLECTS STIFF COMPETITION AS WELL AS THE RECENT STRENGTH OF THE SINGAPORE DOLLAR NO LONGER ABLE TO BANK ON SUPERB SERVICE AND GENEROUS AMENITIES SIA HAS HAD TO LOWER FARES AND JOIN A FREQUENTFLIER PROGRAM IN AN EFFORT TO CONTAIN COSTS SIA KICKED OFF 1994 WITH THE OPENING OF A COMPUTERSOFTWARE DEVELOPMENT AND MAINTENANCE FACILITY IN BOMBAY MR TAN SAYS THIS WILL MEAN BIG SAVINGS SINCE THE AVERAGE SALARY OF A COMPUTER PROFESSIONAL IN SINGAPORE HAS JUMPED 12 ANNUALLY IN THE PAST FIVE YEARS IN INDIA THE STARTING SALARY IN THE COMPUTER FIELD HOVERS AROUND S400 A MONTH COMPARED WITH S1800 TO S2000 IN SINGAPORE BUT UNLIKE MANY OTHER CARRIERS SIA HAS REFRAINED FROM WHOLESALE BLOODLETTING IT HAS AVOIDED LAYOFFS AND HASN'T CANCELED ANY AIRCRAFT DELIVERIES IN FACT SIA HAS CONTINUED TO BUILD CAPACITY UP 18 LAST YEAR FOR AN ANTICIPATED UPTURN IN THE INDUSTRY STARTING IN 1995 THEY WILL BE VERY STRONGLY PLACED TO CAPITALIZE ON A TURNAROUND WHEN IT COMES SAYS MR RUSSELL SIA'S CORE AIRLINE BUSINESS ACCOUNTS FOR 90 OF THE COMPANY'S REVENUE BUT THAT PROPORTION IS LIKELY TO SHRINK AS SUBSIDIARIES CONTINUE TO GROW SILKAIR FOR INSTANCE THE COMPANY'S LOWERCOST REGIONAL CARRIER THAT STARTED OUT IN 1988 BY TARGETING THE LEISURE MARKET LAST YEAR LAUNCHED A BUSINESSCLASS SERVICE MEANWHILE SIA'S AIRCRAFTMAINTENANCE GROUNDSERVICES AND FLIGHTCATERING SUBSIDIARIES ARE SPREADING OVERSEAS IN SEPTEMBER SIA INVESTED US63 MILLION FOR A 10 STAKE IN A JOINTVENTURE AIRCRAFT REPAIR AND MAINTENANCE FACILITY IN XIAMEN CHINA THROUGH ITS SIA ENGINEERING CO UNIT AND LAST YEAR THE COMPANY'S SINGAPORE AIRPORT TERMINAL SERVICES UNIT SIGNED AN AGREEMENT WITH BEIJING CAPITAL INTERNATIONAL AIRPORT TO DEVELOP AN AIRPORT FLIGHTKITCHEN FOR US84 MILLION SIA ENGINEERING AND SATS HAVE BOTH PLACED BIDS TO PROVIDE AIRCRAFT MAINTENANCE AND CARGO HANDLING AT HONG KONG'S NEW AIRPORT AT CHEK LAP KOK WHEN IT'S COMPLETED LATER IN THE DECADE IN VIETNAM SIA WANTS TO SUPPLY HANOI AND HO CHI MINH CITY'S AIRPORTS WITH GROUNDHANDLING AND OTHER SERVICES THOUGH KEEN TO GO LOCAL IN CERTAIN ASIAN MARKETS SIA SPURNS MANY SUITORS AIRLINES IN EUROPE SOUTH AMERICA AND AFRICA THAT ARE EAGER TO GROW HAVE OFFERED SIA EQUITY OR MANAGEMENT OPPORTUNITIES IT HAS DECLINED ABOUT SIX SUCH OFFERS IN THE PAST TWO YEARS MR TAN SAYS WE WANT TO CONCENTRATE ON THIS REGION HE ADDS WE ARE STILL GROWING SO WE HAVE TO DO THIS VERY SELECTIVELY VERY CAREFULLY 9403110021 940311 HURDLE CLEARED FOR FIRMS TO MARKET SATELLITE PHOTOS WASHINGTON THE CLINTON ADMINISTRATION YIELDING TO INDUSTRY AND POLITICAL PRESSURE CLEARED THE PATH FOR US COMPANIES TO SELL REMOTESENSING TECHNOLOGY AND SATELLITE PHOTOGRAPHS THAT OFTEN HAVE BEEN THE STUFF OF SPYING THE DECISION WHICH EASES RESTRICTIONS ON THE EXPORT AND SALE OF REMOTESENSING TECHNOLOGY AND PHOTOS COMES AFTER PRODDING BY MAJOR US COMPANIES SUCH AS LOCKHEED CORP MARTIN MARIETTA CORP AND HUGHES AIRCRAFT CO WHICH HAVE ARGUED THAT GOVERNMENT REGULATIONS HAVE HURT THEIR EFFORTS TO COMPETE AGAINST OVERSEAS RIVALS REMOTE SENSING INVOLVES COLLECTING INFORMATION THROUGH SPACE SATELLITES THE DETAILED PHOTOS HAVE BEEN USED FOR THINGS SUCH AS TRACKING THE LOCATION OF SECRET MILITARY BASES BUT HAVE COMMERCIAL USES IN AREAS SUCH AS OIL DRILLING AND ENVIRONMENTAL ANALYSIS THE COMMERCE DEPARTMENT PEGGED THE MARKET'S VALUE AT ABOUT 400 MILLION ANNUALLY WORLDWIDE AND EXPECTS IT TO EXCEED 2 BILLION BY THE YEAR 2000 FRANCE'S SPOT IMAGE CORP HAS BEEN SELLING SATELLITE IMAGERY OF OBJECTS AS SMALL AS 30 TO 60 FEET IN LENGTH RUSSIA'S NPO ENERGIA IS MARKETING IMAGES IN THE US WITH SIXFOOT RESOLUTION UNDER A 1992 LAW THE COMMERCE DEPARTMENT HAS ISSUED EXPORT LICENSES TO SOME COMPANIES AND IS REVIEWING OTHER APPLICATIONS BUT IT HAS BEEN CRITICIZED FOR MAKING THE PROCESS TOO CUMBERSOME 9403110020 940311 LETTERS TO THE EDITOR LET'S REVOLUTIONIZE PUBLIC EDUCATION YOUR FEB 23 EDITORIAL THE CHARTER HALFSTEP MISSES THE SIGNIFICANCE OF MICHIGAN'S CHARTER SCHOOL LEGISLATION THE MOST FARREACHING IN AMERICA CHARTER SCHOOLS ARE A DRIVING FORCE IN THE EFFORT TO IMPROVE EDUCATION QUALITY AND PERFORMANCE PEOPLE ARE BEGINNING TO REALIZE THAT CHARTER SCHOOLS ARE NOT MERELY A TREND BUT A SYSTEMIC STRATEGY TO REVOLUTIONIZE PUBLIC EDUCATION CHARTER SCHOOLS ARE INFUSING PUBLIC SCHOOLS WITH A DYNAMIC THAT FOR TOO LONG HAS BEEN MISSING COMPETITION THEY ARE RESULT ORIENTED AND THEY OFFER CREATIVE TEACHERS CONCERNED PARENTS AND FARSIGHTED EMPLOYERS THE OPPORTUNITY TO BREAK FREE FROM OUR OVERREGULATED MAINSTREAM SCHOOLS BECAUSE OF THEIR AUTONOMY ACCOUNTABILITY AND FLEXIBILITY THEY CAN SHOW AMERICANS WHAT EDUCATION REFORM REALLY LOOKS LIKE NO DOUBT AS CHARTER SCHOOLS GROW IN NUMBER THEY WILL BECOME THE SCHOOLS OF CHOICE FOR MANY PARENTS AND FUNDING WILL FLOW WITH THE STUDENTS WHO ATTEND THEM THE FLOW OF FUNDING IN TURN WILL LEVERAGE PUBLIC EDUCATION TO SEEK QUALITY EDUCATION AND COSTCONTAINMENT REFORMS ACROSS THE BOARD AT PRESENT EIGHT STATES HAVE A CHARTERSCHOOL LAW ON THE BOOKS AND 14 OTHERS ARE DEBATING THE ISSUE IN THEIR RESPECTIVE LEGISLATURES BUT SEVERAL ELEMENTS IN THE MICHIGAN ACT MAKE IT AN OUTSTANDING EXAMPLE FOR OTHERS TO FOLLOW FIRST UNLIKE CHARTERSCHOOL LAWS IN EVERY OTHER STATE BUT GEORGIA THERE IS NO LIMIT TO THE NUMBER OF PUBLIC SCHOOLS THAT CAN BE CHARTERED IN MICHIGAN SUPPLY CAN KEEP PACE WITH DEMAND ALSO IN MICHIGAN EXISTING PUBLIC SCHOOLS CAN BE CONVERTED TO CHARTER SCHOOLS MY GOAL IS TO SEE AS MANY AS 200 CHARTER SCHOOLS UP AND RUNNING WITHIN THE NEXT THREE YEARS SECOND THERE ARE MANY PATHS AVAILABLE TO PARENTS AND EDUCATORS WHO SEEK TO START A CHARTER SCHOOL IN THEIR COMMUNITIES MICHIGAN IS UNIQUE IN THAT THERE ARE MORE THAN 600 PUBLIC ENTITIES INCLUDING EVERY PUBLIC UNIVERSITY COMMUNITY COLLEGE SCHOOL DISTRICT AND INTERMEDIATE SCHOOL DISTRICT THAT CAN ISSUE CHARTERS THUS IF PARENTS IN ANY GIVEN COMMUNITY ARE FRUSTRATED BY HURDLES ON ONE PATH THEY HAVE REAL ALTERNATIVES THIRD IN MICHIGAN EVEN MORE THAN IN OTHER STATES PARENTS CAN PLAY A DECISIVE ROLE IN THE CHARTER SCHOOLS THEIR CHILDREN ATTEND MOTHERS AND FATHERS CAN EVEN BE DIRECTORS OF THE SCHOOLS THIS IS ESPECIALLY IMPORTANT GIVEN THE STATE OF PUBLIC EDUCATION TODAY WHOSE LEADERSHIP IN RECENT YEARS HAS TOO OFTEN SHOWN A CALLOUS DISREGARD TOWARD EDUCATION CONSUMERS AND HAS RELEGATED PARENTS TO A SECONDCLASS STATUS CHARTER SCHOOLS GIVE FAMILIES MUCHNEEDED CHOICES IN PUBLIC EDUCATION WITH CHOICES COME MORE PARENTAL INVOLVEMENT AND COMMITMENT THAN HAS BEEN POSSIBLE IN THE PAST IT IS CRITICALLY IMPORTANT TO THE FUTURE OF MY STATE AND INDEED TO OUR NATION THAT CHARTER SCHOOLS BE GIVEN EVERY OPPORTUNITY TO FLOURISH AND SUCCEED THEY WILL LEAD THE EDUCATION REFORM EFFORT IN PUBLIC EDUCATION MICHIGAN'S EXPERIENCE SHOWS THAT AN INFORMED CITIZENRY AND GOOD LAWS WILL GO FAR TO MAKE CHARTER SCHOOLS A REALITY DESPITE OPPOSITION FROM SELFSERVING TEACHERS' UNIONS THE CHARTER SCHOOL GENIE IS OUT OF THE BOTTLE THE PUBLIC'S RESPONSE HAS BEEN OVERWHELMINGLY POSITIVE AND PUBLIC EDUCATION WILL NEVER BE THE SAME 9403110019 940311 THE AMERICAS CUBAN PANDORA'S BOX OF CAPITALISM' CANNOT BE SHUT BY BEN BUSHAIJA HAVANA IN THE SHADOW OF THE BAROQUE LATE18THCENTURY CATHEDRAL OF HAVANA REGINALDO DOMINGUEZ SITS IN AN OPEN BOX SWIRLING WITH SAWDUST DEAD CIGAR DANGLING BETWEEN HIS LIPS HE LOVINGLY CHISELS A MINIATURE BUST OF A WOMAN FROM A WOODEN PLANK MR DOMINGUEZ A FORMER FACTORY WORKER HAS SET UP HIS SHOP A STONE'S THROW FROM HIS CHIEF COMPETITORS GOVERNMENTOWNED TOURIST SHOPS THAT SELL MEMENTOS OF CHE GUEVARA AND OTHER REVOLUTIONARY HEROES BUT MR DOMINGUEZ SAYS IT'S NO CONTEST HE CLAIMS THAT EVEN AT 50 APIECE HIS SCULPTURES SELL LIKE HOT CAKES WHILE HE DID NOT MAKE A SALE IN THE HALFHOUR I WAS WATCHING HIM MR DOMINGUEZ CLAIMS THAT ON A TYPICAL DAY HE SELLS 10 AND HE IS HARBORING GRANDER AMBITIONS I NEED A HAND IF WE WERE TWO I'D SELL 20 WHILE HIS CLAIMS MAY BE EXAGGERATED MR DOMINGUEZ'S UNBRIDLED ENTHUSIASM FOR THE MARKETPLACE IS GENUINE HIS STAND IS A PRODUCT OF THE GOVERNMENT'S EXPERIMENT WITH PRIVATE ENTERPRISE LAUNCHED LAST SUMMER HE IS ONE OF THOUSANDS OF CUBANS FEVERISHLY RUNNING SMALL BUSINESSES TO EARN DOLLARS THOSE DOLLARS BUY COMMODITIES AVAILABLE ONLY IN TOURISM SHOPS OF COURSE ALONG WITH THESE COTTAGE INDUSTRIES HAVE SPROUTED SOCIAL ILLS THAT HAVE MADE THE GOVERNMENT PAUSE IN ITS REFORMIST TRACKS PROSTITUTION CRIME GAMBLING AND BLACK MARKETEERING ARE RIFE IN THE COUNTRY STIRRING MARXIST HARDLINERS TO EXCLAIM THAT THE REFORMS AND IN PARTICULAR THE NEW DOLLARDOMINATED ECONOMY HAVE GONE TOO FAR AND NEED TO BE CHECKED ANTIREFORMISTS ARE BOTHERED FURTHER BY SHORTAGES OF GOVERNMENTSUBSIDIZED COMMODITIES ESPECIALLY FOOD THAT THEY BLAME ON TOURISM AND PRIVATE BUSINESSES BUT EVERYWHERE THE CUBAN ENTREPRENEURIAL SPIRIT HUMS ON CUBANS' ZEST TO START AND RUN THEIR BUSINESSES WITH OR WITHOUT GOVERNMENT BLESSING CANNOT BE STOPPED DESPITE A SHORTAGE OF CASH FOR STARTUP COSTS AND ERRATIC GOVERNMENT POLICIES CUBA HAS SPROUTED SMALLBUSINESS MEN OF MANY VARIETIES FROM THE MECHANIC AT A GOVERNMENT CAR BODY SHOP WHO FIXES MOTORCYCLES AT HIS HOME TO A COMMUNIST PARTY YOUTH MEMBER WHO SMUGGLES FOOD FROM THE COUNTRYSIDE AND SELLS IT IN HAVANA FOR A PROFIT SELFEMPLOYED SHOESHINERS ACCOST PASSERSBY OUTSIDE EMPTY GOVERNMENTOWNED FOOD STORES IN CITIES HAIRDRESSERS AND COSMETICIANS HANG CRUDELY HANDWRITTEN SIGNS ADVERTISING THEIR SERVICES OUTSIDE THEIR APARTMENTS THE ORIGINS OF THIS CAPITALIST BOOM LIE IN THE CUBAN GOVERNMENT'S DECISION LAST SUMMER TO ALLOW ITS CITIZENS TO USE AND SAVE US DOLLARS IT WAS A DESPERATE ATTEMPT TO DENT THE US EMBARGO AND HALT THE ECONOMIC SLIDE THAT BEGAN WITH THE FALL OF THE SOVIET UNION WHICH TOGETHER WITH ITS ALLIES WAS SUBSIDIZING NEARLY 25 OF CUBA'S NATIONAL OUTPUT BUT IT WAS ALSO A LIBERATING OPENING FOR THE CUBAN PEOPLE WHO HITHERTO WOULD HAVE BEEN IMPRISONED FOR POSSESSING US CURRENCY LATER IN THE YEAR WITH MUCH FANFARE THE GOVERNMENT ALSO UNVEILED A PACKAGE OF REFORMS THAT INCLUDED LETTING CUBANS WORK FOR THEMSELVES IN MORE THAN 140 PRIVATE OCCUPATIONS IMPORTANTLY FARMERS WOULD BE ALLOWED TO GROW AND SELL CROPS FOR A PROFIT THROUGH NEW COOPERATIVES CUBANS IMMEDIATELY BADGERED THE GOVERNMENT WITH APPLICATIONS TO OPEN RESTAURANTS BARBER SHOPS TAXI SERVICES AND PLUMBING AND MECHANICAL SHOPS AMONG OTHERS THE GOVERNMENT QUICKLY REALIZED IT HAD OPENED A PANDORA'S BOX OF CAPITALISM AND STARTED REVERSING ITSELF ON SOME OF THE OCCUPATIONS ESPECIALLY THE RESTAURANTS AND FARM COOPERATIVES NEVERTHELESS THESE ENTERPRISES WERE BEGINNING TO EASE THE HUNGER IN CITIES BY PROVIDING MUCHNEEDED FOOD NOW THE NATION IS HOLDING ITS BREATH AS A SPECIAL SESSION OF THE NATIONAL ASSEMBLY CONSIDERS THE NEXT SET OF ECONOMIC REFORMS AND ADJUSTMENTS IN THE SPRING THE CHANGES UNDER CONSIDERATION GOVERNMENT OFFICIALS IN HAVANA INSIST WON'T BE A PACKAGE OF SHOCK THERAPIES OF THE KIND ADOPTED BY SEVERAL FORMER SOVIET BLOC COUNTRIES INSTEAD OF CURRENCY DEVALUATIONS AND CRIPPLING TAX POLICIES A SET OF DECREES PROBABLY WILL BE PASSED AIMED AT IMPROVING CUBA'S WORSENING INTERNAL FINANCES BY PARING SUBSIDIES IN THE MEANTIME THE GOVERNMENT'S NERVOUSNESS THAT THE IMMINENT ONSLAUGHT OF CAPITALISM AND INDIVIDUAL INITIATIVE MAY REPLACE ITS COLLECTIVIST POLICIES IS EVIDENT IN THE TELEVISED PUBLIC DEBATES AIMED AT VENTING THE PUBLIC'S ANXIETY ABOUT THE PACE OF REFORM SUCH DEBATES BY WORKERS AND FARMERS ARE AIRED DAILY THE PARTICIPANTS ON THESE SHOWS CALL FOR MORE ECONOMIC FREEDOM AT LEAST AS MUCH AS THAT ENJOYED BY THE FOREIGNERS WHO COME TO THEIR COUNTRY AS TOURISTS OR INVESTORS THAT VIEW IS STRONGLY SUPPORTED BY THE COUNTRY'S FARMERS WHO HAVE BEEN WORKING ON EMPTY STOMACHS BECAUSE OF THE GOVERNMENT'S DIRE NEED FOR FOREIGN CURRENCY FARMERS HAVE BEEN FORCED TO INCREASE THEIR QUOTAS OF SUGAR COFFEE AND TOBACCO THEIR CIRCUMSTANCES WERE WORSENED BY A SEVERE DROUGHT THAT ENDED A YEAR AGO AND AN ACUTE LACK OF FERTILIZERS ON TOP OF THAT THE PROMISED REFORMS THAT WOULD ALLOW THEM TO SELL THEIR PRODUCE AT THE MARKET RATHER THAN TO GOVERNMENT MIDDLEMEN NEVER TOOK PLACE TO A MEANINGFUL DEGREE THE FARMERS' OPEN RESENTMENT OF THE GOVERNMENT IS A SURPRISING DEVELOPMENT GIVEN THAT FARMERS WERE THE BEDROCK OF THE REVOLUTION ON A SUGAR CANE PLANTATION IN QUIVICAN ABOUT TWO HOURS FROM HAVANA A GROUP OF FARMERS INCLUDING A FORMER CASTRO ENTHUSIAST OPENLY EXPRESSED CONTEMPT FOR THE GOVERNMENT WE DON'T CARE WHAT THEY DO TO US THEY HAVE DONE ENOUGH ONE FARMER SAID THESE DAYS THE FARMERS DON'T WORK THE COLLECTIVE FARMS THEY ARE WAITING AND HOPING FOR THE REFORMS TO ALLOW THEM TO GROW WHAT THEY WANT AND SELL IT FOR A PROFIT THESE PEASANT FARMERS DON'T NEED LESSONS ABOUT SUPPLY AND DEMAND AN OLDER FARMER COMPLAINS THAT HE CAN'T GET SUGAR FOR HIS GRANDCHILD THE SUGAR SELLS FOR A GOVERNMENTREGULATED EIGHT CUBAN CENTAVOS A MERE FRACTION OF A US CENT A POUND BUT AT THAT PRICE IT'S RARELY AVAILABLE AT GOVERNMENT FOOD RATION STORES HERE SAID THE OLD MAN AS HE PULLED OUT A WAD OF PESO NOTES FROM HIS POCKET AND THREW UP HIS ARMS TAKE IT ALL AND GIVE ME A POUND OF SUGAR MR BUSHAIJA IS A REPORTER FOR THE CAPE COD TIMES PUBLISHED BY DOW JONES & CO 9403110018 940311 POLITICS & POLICY MANAGER OF HEDGE FUND DISPUTES GOP STATEMENTS WASHINGTON THE MANAGER OF A HEDGE FUND IN WHICH HILLARY RODHAM CLINTON IS AN INVESTOR SAID FORMER THRIFT OWNER JAMES MCDOUGAL WAS NEVER AMONG HIS CLIENTS AS A GROUP OF REPUBLICAN REPRESENTATIVES ASSERTED BILL SMITH PRESIDENT OF SMITH CAPITAL MANAGEMENT DISPUTED SEVERAL STATEMENTS IN A LETTER SIGNED BY 81 MEMBERS OF THE HOUSE AND SENT WEDNESDAY TO THE OFFICE OF GOVERNMENT ETHICS THE LETTER ASKED FOR AN INVESTIGATION INTO MRS CLINTON'S HOLDINGS IN A HEDGE FUND VALUE PARTNERS I THAT IS MANAGED BY MR SMITH AMONG OTHER THINGS THE LETTER SAID MR MCDOUGAL WAS AN INVESTOR IN THE FUND AND WAS IN A POSITION WITH OTHERS TO INFORM MRS CLINTON THAT THE FUND WAS SELLING SHORT HEALTHCARE AND PHARMACEUTICAL STOCKS AT THE TIME SHE WAS MAKING SPEECHES ABOUT NATIONAL HEALTHCARE REFORM HEALTHCARE STOCK PRICES DROPPED AFTER THOSE SPEECHES IN AN INTERVIEW MR SMITH SAID THE FUND DIDN'T HOLD ANY PHARMACEUTICAL STOCKS AT THE TIME OF MRS CLINTON'S SPEECHES AND IN FACT WAS LONG OR BETTING THAT PRICES WOULD RISE IN THE STOCKS OF TWO HEALTHMAINTENANCE ORGANIZATIONS DURING THE FIRST QUARTER OF 1993 MR SMITH SAID MR MCDOUGAL THE FORMER CHAIRMAN OF MADISON GUARANTY SAVINGS & LOAN ASSOCIATION WAS NEVER A CLIENT 9403110017 940311 MARKETING & MEDIA BERTELSMANN PROMOTES OLSON FOR BOOK UNIT MR OLSON 43 YEARS OLD WILL BE CHAIRMAN OF THE BANTAM DOUBLEDAY DELL PUBLISHING GROUP UNIT AND WILL BECOME A BOARD MEMBER REPRESENTING THE BOOK DIVISION THE RECENTLY RESTRUCTURED UNIT INCLUDES THE US AND CANADIAN BOOK CLUBS AND THE WORLDWIDE BANTAM DOUBLEDAY DELL PUBLISHING GROUP UNIT A VETERAN BERTELSMANN SENIOR EXECUTIVE MR OLSON HAD BEEN CHIEF ADMINISTRATIVE OFFICER FOR THE BANTAM DOUBLEDAY DELL UNIT HE SUCCEEDS BERNHARD VON MINCKWITZ 49 WHO WILL DEVOTE HIMSELF TO THE INTERNATIONAL EXPANSION OF BERTELSMANN'S PROFESSIONAL PUBLISHING DIVISION THE COMPANY SAID JACK HOEFT WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OF BANTAM DOUBLEDAY DELL WILL REPORT TO MR OLSON 9403110016 940311 NINE WEST GROUP INC HOPES THE RETURN OF SLEEK FOOTWEAR WILL AID EXPANSION BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS SUMMER LOOK FOR THE RETURN OF SEXY AND DRESSY AND THE DECLINE OF CLUNKY IN FASHIONABLE WOMEN'S SHOE DESIGN ACCORDING TO NINE WEST GROUP INC A RETAILER AND MAKER OF WOMEN'S SHOES NINE WEST WHICH HAS GROWN STEADILY TO MORE THAN 300 RETAIL STORES LARGELY IN UPSCALE MALLS IS BANKING ON THE RETURN TO MORE ELEGANT FOOTWEAR TO HELP SUPPORT ITS AMBITIOUS EXPANSION PLANS FOR AS MANY AS 120 NEW STORES IN 1994 NINE WEST ALSO A WHOLESALER OF SHOE BRANDS TO DEPARTMENT STORES PLANS TO INCREASE ITS RETAIL OPERATIONS SO THAT HALF OF SALES WHICH REACHED 552 MILLION IN 1993 COME FROM COMPANYOWNED STORES IN TWO TO THREE YEARS VINCENT CAMUTO COCHAIRMAN AND PRESIDENT OF NINE WEST SAID SALES THIS WINTER AND SPRING IN WEST COAST STORES WHERE THE COMPANY WATCHES FOR EARLY STYLE TRENDS ARE SHOWING A CONSUMER PREFERENCE FOR WHAT MR CAMUTO CALLS THE DRESSYCASUAL SHOE HE SAID SALES OF SLEEK SLIDES BACKLESS SLIPPERTYPE SHOES ARE SELLING BRISKLY AS WELL AS UPDATED VERSION OF CLASSIC PUMPS THERE IS A RETURN TO THE CLEANEDUP DRESS SHOE HE SAID AND WE CAN REACT QUICKLY TO DELIVER IT USING BRAZILIAN FACTORIES NINE WEST MANAGEMENT HAS USED FOR DECADES IT TAKES NINE WEST AS LITTLE AS EIGHT WEEKS FROM THE FIRST ORDER TO MAKE AND DELIVER A NEW STYLE TO STORES WHILE NINE WEST WAS ABLE TO CAPITALIZE ON LAST YEAR'S PREFERENCE FOR HEAVIER SHOES IT'S THE LIGHTER MODELS THAT ARE MOVING QUICKLY THIS YEAR MR CAMUTO SAID THE SELLTHROUGH RATE THE RATE AT WHICH SHIPPED GOODS ARE ACTUALLY PURCHASED ON THE DRESSIER LINES HAS BEEN UP TO AS MUCH AS 50 IN THE PAST FIVE WEEKS PARTICULARLY AT WEST COAST STORES TYPICALLY WOMEN'S DRESS SHOE LINES HAVE A WEEKLY SELLTHROUGH RATE IN THE SINGLE DIGITS HE NOTED THAT ONE CHICAGO DEPARTMENT STORE RECENTLY SOLD OUT IN ONE DAY A LARGE SHIPMENT OF ITS NEW UPDATED CLOGS A LIGHTER VERSION OF LAST YEAR'S CLUNKIER FASHION HIT NINE WEST GROUP BASED IN STAMFORD CONN PLANS TO FINANCE THE NEW STORES THROUGH EXISTING COMPANY CASH FLOW THE STORE EXPANSION WILL BE SPREAD ACROSS ITS FOUR DIFFERENT RETAIL CONCEPTS WHICH CATER TO DIFFERENT SHOPPERS AND OFFER VARYING STYLES AND PRICES THE FLAGSHIP STORES NINE WEST FEATURE CURRENT SHOE STYLES AND HAVE SHOE PRICES RANGING MOSTLY FROM 45 TO 70 ONE OF ITS MORE PROMISING STORE FORMATS ENZO ANGIOLINI NAMED FOR A LATE COMPANY SHOE DESIGNER FEATURES SLIGHTLY MORE EXPENSIVE SHOES AND HIGHERQUALITY LEATHER WITH PRICES RANGING FROM 60 TO 80 THOUGH BOOTS CAN GO AS HIGH AS 175 NINE WEST PLANS TO OPEN 20 ENZO STORES IN 1994 THE OTHER FORMATS ARE 9 & CO A LOWERPRICED LINE AIMED AT YOUNGER SHOPPERS AND NINE WEST OUTLET WHICH SELLS OFFPRICE MERCHANDISE JEROME FISHER NINE WEST CHAIRMAN SAID THE COMPANY HAS BENEFITED FROM FAVORABLE LEASES FROM MALL DEVELOPERS WHO HAVE BEEN EAGER TO SIGN UP FASHIONABLE STORES WITH THE POTENTIAL TO GENERATE INCREASED TRAFFIC FLOW IN THE MALLS NINE WEST HAS SHOWN STRENGTH AT A TIME WHEN WOMEN'S SPECIALTY APPAREL RETAILERS HAVE SLUMPED COMPANY REVENUE HAS GROWN MORE THAN 60 FROM ABOUT 338 MILLION IN 1989 TO ABOUT 552 MILLION LAST YEAR NINE WEST'S COMPARABLE STORE SALES SALES IN STORES OPEN AT LEAST ONE YEAR IN 1993 ROSE 35 MR FISHER SAID HE EXPECTS SAMESTORE SALES GAINS OF AT LEAST THAT MUCH IN 1994 NINE WEST SAID IT CONTINUES TO BE COMFORTABLE WITH ANALYSTS' ESTIMATES FOR 1994 FIRSTQUARTER EARNINGS OF 31 TO 33 CENTS A SHARE OR 106 MILLION TO 113 MILLION AND FULLYEAR ESTIMATES OF 180 TO 185 OR ABOUT 62 MILLION TO ABOUT 64 MILLION 9403110015 940311 BUSINESS BRIEF CONSOLIDATED STAINLESS INC COMPANY EXPECTS TO REPORT SURGE IN 4THQUARTER NET CONSOLIDATED STAINLESS INC SAID IT EXPECTS TO REPORT NET INCOME OF ROUGHLY 75000 FOR THE 1993 FOURTH QUARTER COMPARED WITH 22000 A YEAR EARLIER EARNINGS PER SHARE FOR THE FOURTH QUARTER WILL TOTAL BETWEEN FOUR AND FIVE CENTS COMPARED WITH ROUGHLY 13 CENTS IN THE YEAREARLIER PERIOD REVENUE FELL ABOUT 28 TO APPROXIMATELY 55 MILLION FROM 76 MILLION BUT EARNINGS WERE BOOSTED BY LOWER COSTS AND IMPROVED YIELDS CONSOLIDATED BASED IN LONGWOOD FLA MAKES STAINLESS STEEL PIPE AND FITTINGS THE COMPANY WILL OFFICIALLY REPORT ITS FOURTHQUARTER EARNINGS IN TWO TO THREE WEEKS FOR 1993 EARNINGS TOTALED ABOUT 600000 OR ABOUT 34 CENTS A SHARE ON REVENUE OF 25 MILLION THAT COMPARES WITH A 1992 LOSS OF 27000 OR 15 CENTS A SHARE ON REVENUE OF 24 MILLION FOR THIS QUARTER THE COMPANY EXPECTS NET TO FALL 44 TO 270000 OR 10 CENTS A SHARE ON REVENUE OF ROUGHLY 6 MILLION 9403110013 940311 YOUR MONEY MATTERS WEEKEND REPORT HOW TO KEEP YOUR BALANCE IN UNCERTAIN MARKETS BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL INVESTING TODAY FEELS A LOT LIKE ICE SKATING IN THE SPRING YOU KNOW THE ICE WILL GIVE WAY AT SOME POINT YOU JUST DON'T KNOW WHEN RISING INTEREST RATES HAVE INVESTORS LOOKING FOR SERIOUS CRACKS IN BOTH THE STOCK AND BOND MARKETS BUT JITTERY OR NOT THEY NEED TO PUT THEIR MONEY SOMEPLACE AND WITH THE AFTERTAX RETURN ON MONEYMARKET FUNDS NOW LESS THAN THE RATE OF INFLATION THERE IS NO PLACE THAT FEELS REALLY SOLID WHEN INTEREST RATES WERE HIGH 10 YEARS AGO IT WAS EASY TO GO TO MONEYMARKET FUNDS SAYS WARNER ARMS HENDERSON A BOSTON INVESTMENT ADVISER NOW THERE IS NO SIMPLE SOLUTION THERE IS NOWHERE YOU CAN TURN THAT IS VOID OF RISK INDEED EVEN MOVING TO THE SIDELINES WON'T PREVENT A LOSS ONCE TAXES AND INFLATION TAKE THEIR BITE OUT OF A 23 MONEYMARKET RETURN INVESTORS ARE ALREADY UNDERWATER MOREOVER IF THE BULL STOCK MARKET KEEPS ROARING FOR ANOTHER YEAR OR TWO ALL THE MONEY PULLED OUT OF THE STOCK MARKET WILL BE LEFT BEHIND THIS ISN'T THE TIME WHEN YOU WANT TO MAKE ANY BIG BETS EITHER BY PULLING YOUR MONEY OUT OF THE MARKET OR PUTTING IT ALL INTO SAY BIOTECH STOCKS COMMENTS RICHARD T WHITNEY PRESIDENT OF T ROWE PRICE BALANCED FUND YOU DON'T WANT TO PUT ALL OF YOUR EGGS IN ONE BASKET WHILE MANY WORRY THAT STOCKS ARE OVERDUE FOR A BIG SLIDE TRYING TO TIME THE MARKET IS RISKY BUSINESS NOTES MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS WEALTHY CLIENTS PICK MONEY MANAGERS THAT'S BECAUSE NOBODY REALLY HAS ANY IDEA WHEN THE MARKET FINALLY WILL TURN INVESTORS WHO ARE REALLY WORRIED MAY WANT TO TAKE 10 OR 20 OF THEIR MONEY OUT OF THE STOCK MARKET MR STOLPER SAYS BUT UNLESS THE MONEY IS NEEDED IN THE NEXT FIVE YEARS HE ADDS INVESTORS WOULD DO BETTER KEEPING THEIR LONGTERM MONEY IN THE MARKET AND SIMPLY RIDING OUT ANY DOWN CYCLE OFTEN THE BEST THING YOU CAN DO FOR YOUR CLIENTS IS TO KEEP THEM FROM STEPPING AWAY FROM THE GAME HE SAYS BUT OTHERS SAY IT'S TIME TO MOVE AT LEAST SOME MONEY TO THE SIDELINES PARTICULARLY IF YOU HAVE NICE PROFITS IN GROWTH STOCKS AND CYCLICALS ONE APPROACH IS TO SPEND TIME RESEARCHING STOCKS YOU WOULD LIKE TO BUY IF THE MARKET TANKS IF YOU HAVE A BROADLY DIVERSIFIED WISH LIST AND ARE PATIENT CHANCES ARE OVER THE NEXT YEAR YOU'LL GET A CHANCE TO BUY SOME BARGAINS SAYS HUGH LAMLE EXECUTIVE VICE PRESIDENT WITH MD SASS INVESTORS SERVICES IN NEW YORK WHATEVER MONEY YOU LEAVE IN THE MARKET SHOULD BE WELL DIVERSIFIED IN ADDITION INVESTORS SHOULD BE LOOKING FOR INVESTMENTS THAT HAVE RELATIVELY LOW CORRELATION WITH THE STOCK AND BOND MARKETS SAYS LEWIS J ALTFEST A NEW YORK INVESTMENT ADVISER SINCE THESE INVESTMENTS DON'T MOVE WITH THE MARKETS A BIG MARKET DROP WOULDN'T NECESSARILY AFFECT THEM GOLD IS THE CLASSIC EXAMPLE BUT MR ALTFEST SAYS THERE ARE ALSO SOME MUTUAL FUNDS THAT MARCH TO THEIR OWN TUNE WHEN MARKETS MOVE THE MUTUAL SERIES FUNDS MANAGED BY MICHAEL PRICE ARE AMONG THEM HE SAYS PUTTING MONEY IN OPPORTUNISTIC SOMETIMES OFF THE BEATEN TRACK INVESTMENTS THAT HAVE INCLUDED BANKRUPTCY PLAYS AND SMALL LITTLEKNOWN BANKS MUTUAL BEACON IS THE ONLY ONE OF THE FOUR MUTUAL SERIES FUNDS CURRENTLY OPEN TO NEW INVESTORS INTERNATIONAL INVESTING IS ANOTHER WAY INVESTORS CAN DIVERSIFY YET SOME MARKETS HERE ARE OVERHEATED PUMPED UP WITH MONEY FROM US INVESTORS WE HAVE CAUSED THESE MARKETS TO SKYROCKET SAYS MR ALTFEST SO WE COULD CAUSE THEM TO GO DOWN HIS FAVORITE FOREIGN PLAY RIGHT NOW JAPAN HERE AT HOME SMALLCAPITALIZATION STOCKS LOOK GOOD TO T ROWE PRICE'S MR WHITNEY WE ARE STILL SORT OF RIGHT IN THE MIDDLE OF THE SMALLCAP CYCLE HE SAYS SOME MARKET WATCHERS LIKE ENERGY AND NATURALRESOURCES STOCKS AS A DEFENSIVE PLAY IN AN UNCERTAIN MARKET OTHERS SAY REAL ESTATE IS RIPE FOR A REBOUND INVESTORS WHO PREFER TO LET MUTUAL FUNDS DO THEIR STOCK PICKING MAY WANT TO LOOK FOR FUNDS THAT HAVE PERFORMED WELL IN DOWN MARKETS SOME NAMES ON THE LIST INCLUDE LINDNER FUND NEUBERGER & BERMAN PARTNERS AND PHOENIX GROWTH SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC THE DOWNSIDE HERE THESE FUNDS PROBABLY WON'T PERFORM AS WELL AS OTHERS IF THE MARKET KEEPS GOING UP HE SAYS SOME ADVISERS SAY VALUE FUNDS WHICH LOOK FOR STOCKS AT BARGAIN PRICES ARE A GOOD PICK TODAY BUT DON'T RELY ON THE NAME OR CATEGORY OF A FUND TO TELL YOU ITS INVESTMENT PHILOSOPHY MANY SOCALLED GROWTH FUNDS CAN EMBRACE A VALUE STYLE OF INVESTING JUST AS BALANCED FUNDS CAN HAVE SIGNIFICANT FOREIGN INVESTMENTS YOU CAN'T GO BY THE LABEL SAYS MR HENDERSON THE BOSTON INVESTMENT ADVISER YOU NEED TO LOOK AT THE ACTUAL HOLDINGS OF THE FUND BALANCED FUNDS AND EQUITYINCOME FUNDS ARE OFTEN BILLED AS LESS RISKY IN A DOWN MARKET BUT THEY MAY NOT OFFER AS MUCH PROTECTION AS INVESTORS THINK WHILE STOCKMARKET RISK MAY BE LESS THE FIXEDINCOME PART OF THESE FUNDS COULD TAKE A POUNDING FROM RISING INTEREST RATES THE FIXEDINCOME PORTION OF YOUR PORTFOLIO SHOULD BE THE SECURITY BLANKET OF YOUR PORTFOLIO BUT RISING INTEREST RATES WHICH CAUSE BOND PRICES TO DROP CAN SERIOUSLY ERODE THIS PROTECTION LOCKING INVESTORS INTO BELOWMARKET INTEREST RATES OR CREATING ACTUAL LOSSES FOR INVESTORS WHO SELL THEIR BONDS OR OWN BOND FUNDS WE THINK THERE IS GREATER RISK ON THE FIXEDINCOME SIDE THAN ON THE EQUITY SIDE SAYS MR LIPPER NOTING THAT PEOPLE EXPECT DIPS IN THEIR STOCK PORTFOLIO BUT AREN'T PREPARED FOR LOSSES IN THE FIXEDINCOME ARENA THE TRADITIONAL DEFENSE REDUCE INTERESTRATE VOLATILITY BY SHORTENING MATURITIES AND MOVING TO HIGHER QUALITY THE BEST PLACE TO BE ON THE YIELD CURVE RIGHT NOW FIVEYEAR SECURITIES SAYS THERESA A HAVELL DIRECTOR OF FIXED INCOME FOR NEUBERGER & BERMAN NEW YORK NOTING THEY CAPTURE 87 OF THE YIELD OF A 30YEAR BOND BUT WITH ONLY 50 THE VOLATILITY STILL MS HAVELL THINKS INVESTORS NEED TO ADD A THIRD DIMENSION TO THE TRADITIONAL DEFENSE INTERNATIONAL BONDS I HAVE BEEN THINKING ABOUT THIS FOR MONTHS WE ARE SEEING A COMPLETE GLOBALIZATION OF THE MARKETPLACE SHE SAYS NOTING THAT IN MANY COUNTRIES NOT ONLY ARE INTEREST RATES HIGHER BUT THE ECONOMIC RECOVERIES ARE FAR BEHIND THE US SO SPREAD YOUR RISK HORIZONTALLY NOT VERTICALLY MOST INVESTORS AREN'T EQUIPPED TO NAVIGATE FOREIGN FINANCIAL WATERS THEMSELVES THAT MEANS LOOKING TO A MUTUAL FUND BUT HERE IT IS CRITICAL THAT INVESTORS FIND A FUND THAT MATCHES THEIR RISK TOLERANCE JUST BECAUSE IT SAYS GLOBAL IT DOESN'T HAVE TO BE HIGH RISK MS HAVELL SAYS THE RISK OF A FUND VARIES DEPENDING ON THE CREDIT QUALITY AND THE AMOUNT OF DERIVATIVE SECURITIES AS WELL AS MATURITY AND CURRENCY RISK SHE ADDS ASSUMING EQUAL QUALITY AND MATURITY IS IT A BETTER DEFENSE TODAY TO BUY INDIVIDUAL BONDS OR A BOND FUND IT DOESN'T REALLY MATTER SAYS MR LAMLE OF MD SASS AS LONG AS THE FUND ISN'T LEVERAGED THAT HE SAYS MAGNIFIES LOSSES CAUSED BY INTERESTRATE INCREASES A GOOD MANAGER HOWEVER MAY BE ABLE TO NAVIGATE THE INTERESTRATE WATERS BETTER THAN AN INDIVIDUAL INVESTOR FOR THAT SERVICE AN INVESTOR PAYS A FEE TO MAKE SURE YOUR MANAGER IS EARNING THAT FEE MR LAMLE SUGGESTS CHECKING FUND PERFORMANCE AGAINST A RELATIVE INDEX THE SALOMON BROAD INDEX FOR EXAMPLE TRACKS INTERMEDIATE TAXABLE BONDS HAS THE MANAGER ADDED 50 TO 100 BASIS POINTS HE ASKS A BASIS POINT IS A HUNDREDTH OF A PERCENTAGE POINT ANOTHER CLUE TO GOOD MANAGEMENT IS TURNOVER IF THE TURNOVER IS UNDER 50 THE FUND IS NOT REALLY BEING MANAGED HE SAYS FINALLY REMEMBER THAT INVESTING DEFENSIVELY MEANS PAYING ATTENTION TO THE DETAILS THE MANAGEMENT FEE FOR EXAMPLE CAN HAVE A BIG IMPACT AS YOU MOVE TO SHORTER MATURITIES IT COULD BE UP TO 20 OF YOUR TOTAL RETURN SAYS MR HENDERSON NOTING FEES CAN RANGE FROM 025 TO MORE THAN 1 OF ASSETS IT'S SOMETHING TO PAY ATTENTION TO 9403110012 940311 BUSINESS BRIEF HICKS MUSE TATE & FURST INC UNIT ACQUIRES LUKENS INC'S SAFETYPRODUCTS OPERATIONS JACKSON PRODUCTS INC A SAFETYEQUIPMENT MANUFACTURER OWNED BY INVESTMENT FIRM HICKS MUSE TATE & FURST INC ACQUIRED LUKENS INC'S SAFETYPRODUCTS GROUP TERMS WEREN'T DISCLOSED THE GROUP WHICH SELLS HIGHWAYSAFETY PRODUCTS INCLUDING REFLECTIVE TAPE AND PAINT HAD 1993 SALES OF ABOUT 61 MILLION THE ACQUISITION WILL GIVE JACKSON WHICH HICKS MUSE ACQUIRED LAST APRIL MORE THAN 100 MILLION IN SALES JAMES M MILLS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF JACKSON SAID IN DALLAS MR MILLS SAID JACKSON A SUPPLIER OF EQUIPMENT DESIGNED TO PROTECT THE EYES FACE AND HEAD IS LOOKING AT OTHER POSSIBLE ACQUISITIONS IN THE SAFETYPRODUCTS AREA HE SAID JACKSON PLANS TO GROW BY ACQUISITIONS INTO A COMPANY WITH ANNUAL SALES OF 200 MILLION TO 300 MILLION LUKENS IS A STEEL MAKER BASED IN COATESVILLE PA 9403110011 940311 CHINA STEEL STANDS OUT DESPITE WORRIES OVER EXPECTED SALE OF GOVERNMENT STAKE BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL AMID ALL THE JITTERS OVER THE FATE OF A GOVERNMENT EFFORT TO SELL A HUGE STAKE IN CHINA STEEL CORP TAIWAN'S STOCK MARKET HAS LOST SIGHT OF HOW STRONG A FUNDAMENTAL INVESTMENT THE COMPANY ACTUALLY IS FOR A GLOBAL INDUSTRY IN WHICH LOSSES PREVAIL CHINA STEEL STANDS OUT AS ONE OF THE WORLD'S MOST PROFITABLE STEELMAKERS JARDINE FLEMING TAIWAN SECURITIES LTD REPORTS THAT CHINA STEEL'S PROFIT MARGIN OF NEARLY 19 IN ITS LATEST FISCAL YEAR IS MUCH HIGHER THAN ANY OTHER MAJOR STEEL COMPANY THE CLOSEST IS SOUTH KOREA'S POHANG IRON & STEEL CO WHICH LAST YEAR HAD A PROFIT MARGIN OF 3 IN THE FIRST EIGHT MONTHS OF THE YEAR ENDING JUNE 30 CHINA STEEL SAW ITS PROFIT RISE 72 TO NT782 BILLION US2963 MILLION NEARLY EQUAL TO LAST YEAR'S 12MONTH EARNINGS OF NT784 BILLION AND APPROACHING THE GOVERNMENT'S FULLYEAR PROJECTION OF NT81 BILLION FOR THE CURRENT FISCAL YEAR MANY BROKERS EXPECT CHINA STEEL'S EARNINGS THIS YEAR TO RISE MORE THAN 50 FROM LAST YEAR MOST STEEL COMPANIES IN THE WORLD ARE FACING TREMENDOUS LOSSES SAYS CY WANG CHINA STEEL'S CHAIRMAN LOOKING OUT PROUDLY OVER THE VAST INDUSTRIAL COMPLEX DOMINATING THE SHORELINE OF KAOHSIUNG A PORT CITY IN SOUTHERN TAIWAN BUT AT CHINA STEEL SO FAR THIS FISCAL YEAR WE HAVE HAD QUITE GOOD RESULTS I SHOULD NOT SAY I'M HAPPY BUT I'D LIKE TO SAY I'M SATISFIED CHINA STEEL NOW IS OPERATING AT FULL CAPACITY UNABLE TO FILL ALL ITS DOMESTIC AND FOREIGN ORDERS BUT CONSTRUCTION IS UNDER WAY TO EXPAND STEELMAKING CAPACITY 42 BY LATE IN THE DECADE TO EIGHT MILLION METRIC TONS A YEAR FROM THE CURRENT LEVEL OF ABOUT 565 MILLION METRIC TONS WITH THAT ANALYSTS SAY THE COMPANY WILL BE ABLE TO SUPPLY EVEN MORE OF TAIWAN'S NEEDS INCLUDING MORE STEEL FOR THE COUNTRY'S INFRASTRUCTURE IT ALSO WILL BE ABLE TO EXPAND ITS SALES TO THE INSATIABLE CHINESE MARKET CURRENTLY LIMITED TO LESS THAN 100000 TONS A YEAR THIS STOCK COULD BECOME ONE OF THE TAIWAN STOCK MARKET'S MOST CONVINCING CHINA PLAYS AS IT IS LIKELY TO TAKE UP A DOMINANT POSITION IN CHINA'S BOOMING SOUTHEASTERN COASTAL AREAS SAYS A RECENT REPORT FROM SG WARBURG TAIWAN SECURITIES LTD THAT LONGTERM VIEW SEEMS OF LITTLE CONCERN TO TAIWANESE INVESTORS THE MARKET HAS BEEN TAKING A VERY SHORTTERM VIEW OF CHINA STEEL IN RECENT WEEKS JUST AS THE GOVERNMENT HAS TRIED TO SELL LOCAL INVESTORS SOME 288 MILLION SHARES OF THE COMPANY CHINA DEVELOPMENT CORP THE LEAD UNDERWRITER SAID THAT THE ISSUE WAS FOUR TIMES OVERSUBSCRIBED AND AN INVESTMENT BANKER SAID THAT IT COULD END UP FIVE TIMES OVERSUBSCRIBED ONCE ALL THE SUBSCRIPTIONS ARRIVE IN THE MAIL BUT THAT HAS LITTLE MEANING UNDER TAIWAN'S UNIQUE UNDERWRITING PROCESS CHINA STEEL IS LOOKING AT TWO MORE WEEKS OF NAILBITING BEFORE THE ISSUE'S SUCCESS OR FAILURE IS DETERMINED THE UNDERWRITERS WILL HAVE TO WAIT UNTIL MARCH 22 AFTER A MARCH 15 LOTTERY THAT ALLOCATES SHARES TO SUBSCRIBERS TO SEE WHETHER INVESTORS WILL SHELL OUT THEIR MONEY EVERYTHING DEPENDS ON THE STOCK MARKET WHICH ON THURSDAY DECLINED 10066 POINTS TO 536603 THAT DROP HELPED WIPE OUT A RALLY LAST WEEK IN ANTICIPATION OF A CENTRAL BANK ANNOUNCEMENT SATURDAY THAT AN INCREASED FLOW OF FOREIGN CAPITAL WOULD BE ALLOWED INTO THE STOCK MARKET THE NEW CHINA STEEL SHARES ARE BEING OFFERED AT NT2171 US82 CENTS WHICH REPRESENTED A SUBSTANTIAL DISCOUNT TO THE COMPANY'S STOCK PRICE IN MIDFEBRUARY WHEN IT HOVERED NEAR NT28 BUT SINCE THEN THE STOCK HAS FALLEN SHARPLY AND ON THURSDAY IT CLOSED AT NT2220 DOWN 40 NEW TAIWAN CENTS ON THE DAY THAT OFFERS INVESTORS A MERE 35 DISCOUNT ON THE NEW SHARES WHICH MOST ANALYSTS BELIEVE ISN'T ENOUGH TO ATTRACT BUYERS TO THE ISSUE THE TIMING WE WILL WORRY ABOUT THE MOST IS WHEN PAYMENT COMES DUE SAYS AN INVESTMENT BANKER INVOLVED IN THE UNDERWRITING SYNDICATE MANY PEOPLE AGREE THE STOCK IS REACHING BOTTOM SO WE HAVE MORE THAN A WEEK TO GO FOR THE STOCK TO REBOUND THE GOVERNMENT ORIGINALLY PLANNED TO ISSUE UP TO 15 BILLION CHINA STEEL SHARES BY JUNE IN AN EFFORT TO REDUCE ITS STAKE IN THE COMPANY TO ABOUT 51 FROM ITS CURRENT 76 HOLDING THE CURRENT 288 MILLION SHARE FOLLOWS A SUCCESSFUL 72 MILLION SHARE PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS THAT CLOSED LAST WEEK BUT MOST ANALYSTS SAY THIS SCHEDULE NOW IS EXTREMELY UNREALISTIC GIVEN THE WEAK STOCK MARKET MR WANG CHINA STEEL'S CHAIRMAN SAYS THAT SOME OF THE PROBLEMS WITH THE CURRENT ISSUE MIGHT HAVE BEEN AVOIDED HAD THE GOVERNMENT DECIDED TO TURN TO INTERNATIONAL CAPITAL MARKETS BEFORE CALLING ON THE LOCAL MARKET INDEED UNDERWRITERS SAY THAT THERE IS STRONG INTEREST IN SEEKING A NEW YORK STOCK EXCHANGE LISTING FOR CHINA STEEL LATER THIS YEAR IN THE VERY BEGINNING I SUGGESTED THAT THE GOVERNMENT SELL ON INTERNATIONAL MARKETS FIRST MR WANG SAYS BUT THEY DIDN'T LISTEN MANY ANALYSTS SAY THAT IF THE DOMESTIC ISSUE FALLS SHORT OF EXPECTATIONS LATER THIS MONTH THE CLIMATE FOR AN INTERNATIONAL ISSUE WILL BE HURT POSSIBLY UNDERMINING DEMAND FROM INVESTORS WHO SHOULD BE MOST INTERESTED IN CHINA STEEL AS A LONGTERM INVESTMENT IN 1992 THE LAST TIME CHINA STEEL SHARES WERE ISSUED AN OFFERING OF 360 MILLION GLOBAL DEPOSITARY RECEIPTS CAME FIRST AND WAS WELL RECEIVED BUT THE GDRS' PRICE PLUMMETED FROM THE ISSUE PRICE OF US1820 EACH TO AROUND US14 WHEN A SUBSEQUENT ISSUE OF 5095 MILLION SHARES IN TAIWAN WAS ONLY 38 SUBSCRIBED DESPITE THAT EXPERIENCE MR WANG WHO PRESIDED OVER THE GOVERNMENT AGENCY RESPONSIBLE FOR PRIVATIZATION AT THE TIME OF THOSE ISSUES SAYS INVESTORS ULTIMATELY WERE BEST SERVED BY THAT APPROACH I FELT SORRY FOR THE FOREIGN INVESTORS THEN HE SAYS BUT THEY DIDN'T KEEP THE SHARES LONG ENOUGH IF THEY HAD THEY'D BE OK NOW I TOLD EVERYBODY PLEASE TAKE A LONGTERM VIEW AS PRIVATIZATION PROCEEDS AND GOVERNMENT OWNERSHIP EVENTUALLY DROPS BELOW 50 AS THE GOVERNMENT INTENDS CHINA STEEL ALSO CAN LOOK FORWARD TO THE REDUCTION OF POLITICAL INTERFERENCE IN ITS AFFAIRS AS A STATEOWNED COMPANY CHINA STEEL'S BUDGET MUST BE APPROVED BY THE CABINET AND THE LEGISLATURE AND THE LAWMAKERS HAVE BECOME A MAJOR PROBLEM TWO YEARS AGO THE LEGISLATURE BLOCKED A PROPOSED INVESTMENT BY CHINA STEEL IN A STEELMAKING JOINT VENTURE IN MALAYSIA TO MAKE MATTERS WORSE CHINA STEEL MUST SUBMIT ITS BUDGETS TWO YEARS IN ADVANCE IT'S REALLY IMPOSSIBLE FOR ANY BUSINESSMAN TO PREDICT WHAT WILL HAPPEN TWO YEARS LATER MR WANG SAYS HOW CAN I PREDICT PRICE MOVEMENTS 9403110010 940311 POLITICS & POLICY WHITEWATER INVESTIGATOR BRINGS 3 AIDES FROM WHITE HOUSE BEFORE GRAND JURY BY MICHAEL K FRISBY AND PAULETTE THOMAS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITEWATER INVESTIGATION SENT QUIVERS THROUGH THE CLINTON ADMINISTRATION AS WHITE HOUSE AND TREASURY OFFICIALS BEGAN DELIVERING DOCUMENTS AND TESTIMONY TO A FEDERAL GRAND JURY DISCLOSURES THAT TREASURY AND WHITE HOUSE OFFICIALS HAD DISCUSSED AN INVESTIGATION INVOLVING THE CLINTONS HAD RAISED QUESTIONS ABOUT WHETHER THE WORK OF REGULATORS HAD BEEN COMPROMISED YESTERDAY SPECIAL COUNSEL ROBERT FISKE BROUGHT THREE WHITE HOUSE AIDES COMMUNICATIONS DIRECTOR MARK GEARAN HILLARY RODHAM CLINTON'S CHIEF OF STAFF MAGGIE WILLIAMS AND MRS CLINTON'S PRESS SECRETARY LISA CAPUTO TO THE GRAND JURY TO TALK ABOUT THEIR CONTACTS THROUGHOUT THE CLINTON ADMINISTRATION THE SIGHT OF TOP OFFICIALS WALKING INTO A GRAND JURY PROVIDED A CLEAR WARNING OBSTRUCTING MR FISKE'S INVESTIGATION OR FEDERAL REGULATORS WILL BE DEALT WITH HARSHLY THE FISKE INQUIRY HAS HAD A CHILLING EFFECT IN BOTH THE WHITE HOUSE AND THE TREASURY DEPARTMENT WHERE AIDES SAID THEY ARE RELUCTANT TO DISCUSS WHITEWATERRELATED ISSUES WITH THEIR COLLEAGUES EVEN THEIR OWN DEPUTIES AT THE TREASURY FOR INSTANCE OFFICIALS ACTING ON BEHALF OF TREASURY SECRETARY LLOYD BENTSEN CONFISCATED COMPUTER EQUIPMENT AND NOTES AS PART OF THE SECRETARY'S OWN INTERNAL REVIEW MR BENTSEN WANTS TO BE SURE THAT HIS OFFICIALS HAVE COOPERATED WITH MR FISKE'S REQUEST FOR INFORMATION RELATING TO CONTACTS WITH THE WHITE HOUSE REGARDING THE RESOLUTION TRUST CORP'S INVESTIGATION OF THE FAILED MADISON GUARANTY SAVINGS & LOAN THE RTC INQUIRY DEALT WITH ALLEGATIONS THAT FUNDS FROM MADISON WERE IMPROPERLY DIVERTED TO MR CLINTON'S GUBERNATORIAL CAMPAIGNS OR WHITEWATER DEVELOPMENT CO THE FORMER OWNER OF MADISON WAS A PARTNER OF THE CLINTONS IN WHITEWATER AN ARKANSAS REALESTATE VENTURE I HESITATE TO SAY COME LOOK IN MY BASEMENT AT TREASURY BECAUSE SOMEONE WOULD PROBABLY CALL ME A PACK RAT MR BENTSEN TOLD A HOUSE APPROPRIATIONS SUBCOMMITTEE BUT WE'VE BEEN HOLDING BACK OUR TRASH TO THE POINT THAT I'VE HAD TO USE A WAREHOUSE IN ALEXANDRIA VIRGINIA TO HOLD THE OVERFLOW THERE ARE 15 SPECIAL INVESTIGATORS AND INTERNAL AUDITORS GOING THROUGH OUR FILES ON MY FLOOR ALONE FURTHER JOEL KLEIN THE DEPUTY WHITE HOUSE COUNSEL SAID YESTERDAY THE WHITE HOUSE HAS COMPLIED WITH MR FISKE'S SUBPOENA FOR DOCUMENTS A WHITE HOUSE AIDE SAID THAT THE GRAND JURY WAS SENT ABOUT 1000 PAGES OF DOCUMENTS GATHERED FROM ABOUT 40 PEOPLE WHO RESPONDED TO MR FISKE'S REQUEST FOR INFORMATION ABOUT CONTACTS WITH TREASURY OFFICIALS TENSION AT THE WHITE HOUSE WILL VERY LIKELY RISE NEXT WEEK SEVEN OTHER WHITE HOUSE AND TREASURY FIGURES HAVE BEEN SUBPOENAED TO APPEAR BEFORE THE GRAND JURY ONE OF THE OFFICIALS IS PRESIDENTIAL AIDE BRUCE LINDSEY WHO MR CLINTON SAID PROBABLY WAS THE PERSON WHO FIRST INFORMED HIM THAT THE RTC WOULD SEEK A CRIMINAL INVESTIGATION OF MADISON IN ADDITION DEPUTY CHIEF OF STAFF HAROLD ICKES IS SCHEDULED TO APPEAR THURSDAY MR ICKES HAS HEADED THE INTERNAL HANDLING OF THE WHITEWATER MATTER AND PARTICIPATED IN ONE OF THE THREE MEETINGS BETWEEN WHITE HOUSE AND TREASURY OFFICIALS THAT TRIGGERED THE UPROAR INVESTIGATORS WILL BE EAGER TO QUESTION JEAN HANSON THE TREASURY'S GENERAL COUNSEL WHO ALSO WILL TESTIFY ON SEPT 29 SHE TOLD WHITE HOUSE COUNSEL BERNARD NUSSBAUM THAT THE RTC WOULD SEEK THE CRIMINAL INVESTIGATION OF MADISON PROVIDING AN EARLY WARNING FOR THE WHITE HOUSE MS HANSON HAS TOLD TREASURY OFFICIALS THAT SHE ACTED AFTER RECEIVING AN INQUIRY FROM THE PRESS ABOUT A POSSIBLE REFERRAL AND SHE CONTENDS THAT SHE WAS SEEKING GUIDANCE FROM MR NUSSBAUM ON HOW TO RESPOND AS MS WILLIAMS WAS LEAVING THE COURTHOUSE YESTERDAY SHE MOCKED THE MEDIA ATTENTION ON THE CASE YOU CAN'T COME OUT OF ANYTHING LIKE THIS AND NOT HAVE A FAIRLY HEALTHY RESPECT FOR THE PROCESS SHE SAID I'M REALLY ENCOURAGED TO BE PARTICIPATING IN SOMETHING WHERE THE FINDING OF FACT IS IMPORTANT AS OPPOSED TO INNUENDO AND RUMORMONGERING AND GOSSIP AND SENSATIONALISM ON CAPITOL HILL MEANWHILE TEMPERS GREW TESTIER NEW YORK REPUBLICAN SEN ALFONSE D'AMATO CALLED FOR THE RESIGNATION OF THE DEPUTY TREASURY SECRETARY ROGER ALTMAN FOLLOWING MR ALTMAN'S RECENT DISCLOSURE THAT HE CONSULTED WITH THE WHITE HOUSE ABOUT WHETHER HE SHOULD RECUSE HIMSELF FROM THE INVESTIGATION DEMOCRATS ARE GENERALLY ACCEDING TO THE REQUEST OF MR FISKE TO HOLD OFF HEARINGS ON WHITEWATER BUT A HOUSE BANKING COMMITTEE HEARING SCHEDULED IN TWO WEEKS FOR OVERSIGHT OF THE RTC IS CERTAIN TO BECOME A FORUM FOR REPUBLICAN QUESTIONS REP JIM LEACH OF IOWA THE RANKING REPUBLICAN ON THE COMMITTEE HAS REQUESTED THE APPEARANCE OF 40 WITNESSES COMMITTEE STAFFERS SAID THEY EXPECT PERHAPS A HALFDOZEN TO SHOW BUT AS OF YESTERDAY COMMITTEE CHAIRMAN HENRY GONZALEZ HADN'T NOTIFIED THE PROPOSED WITNESSES AND HE CONTINUED TO WARN THAT HE WOULDN'T LET THE HEARING BECOME A COLLOQUY ON WHITEWATER I KNOW THE RULES I KNOW THE LIMITS AND BY GOD ON THE APPOINTED HOUR OF THE APPOINTED DAY I WILL RULE THE TEXAS DEMOCRAT SAID IT'S GOING TO BE OVERSIGHT OF THE RTC GREG HITT CONTRIBUTED TO THIS ARTICLE 9403110009 940311 BABBITT EXPLORES LINKING SUGAR SUPPORTS TO CLEANUP WASHINGTON INTERIOR SECRETARY BRUCE BABBITT IN A LETTER TO AGRICULTURE SECRETARY MIKE ESPY RAISED THE POSSIBILITY OF LIMITING SUGAR PRICE SUPPORTS FOR COMPANIES THAT DON'T JOIN A PLAN TO HELP CLEAN UP THE FLORIDA EVERGLADES AN INTERIOR DEPARTMENT OFFICIAL SAID THE MOVE WAS AIMED AT PRESSING SEVERAL SOUTH FLORIDA SUGAR GROWERS PRINCIPALLY US SUGAR CORP CLEWISTON FLA TO ACCEPT AN AGREEMENT THAT WAS STRUCK LAST JANUARY BETWEEN THE INTERIOR DEPARTMENT AND FLOSUN INC A WEST PALM BEACH FLA SUGAR GROWER US SUGAR AND SEVERAL SMALLER GROWERS IN THE REGION HAVE REFUSED TO SIGN ON THE AGRICULTURE DEPARTMENT PROGRAM PROVIDES GOVERNMENT LOANS AT A SUBSIDIZED INTEREST RATE TO SUGAR FARMERS THE LETTER APPEARS TO SUGGEST THAT LOANS WOULD BE CURTAILED FOR US SUGAR AND THE OTHER SUGAR FARMERS WHO UNDER A 1991 FEDERAL CONSENT DECREE WERE FOUND TO BE VIOLATING STATE WATER QUALITY STANDARDS AN AGRICULTURE DEPARTMENT SPOKESMAN DECLINED TO COMMENT ON THE CONTENTS OF THE LETTER BUT SAID IT HAS BEEN FORWARDED TO THE PROPER DIVISION FOR REVIEW A SPOKESMAN FOR US SUGAR EXPRESSED FRUSTRATION AT THE LETTER SAYING IT COULD PREVENT SETTLEMENT OF THE EVERGLADES SITUATION 9403110008 940311 SPOILS OF WAR SERBS AT THE FRONT VOW NEVER TO CEDE LANDS THEY SEIZED IN BOSNIA UNION WITH CROATS MUSLIMS FLIES AGAINST NATIONALISM FED BY YEARS OF HATRED PARABLE OF RABBITS AND OXEN BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL SARAJEVO BOSNIAHERZEGOVINA THE BLUE GLOW OF THE TELEVISION DRAWS SERBIAN SOLDIERS TO A CORNER OF THEIR DARK AND SMOKY BARRACKS IT IS TIME FOR THE EVENING NEWS THE SERBS ARE ON THE DEFENSIVE SAYS THE MUSLIM ANNOUNCER BROADCASTING FROM THE OTHER SIDE OF THE FRONT LINE AFTER WITHDRAWING THEIR HEAVY WEAPONS FROM AROUND SARAJEVO UNDER A NATO BOMBING THREAT THE SERBS CAPITULATED TO RUSSIAN PRESSURE TO OPEN TUZLA AIRPORT FOR HUMANITARIAN FLIGHTS THE AMERICANS HAVE PERSUADED THE CROATS AND MUSLIMS TO FORM A FEDERATION IN BOSNIAHERZEGOVINA NOW WASHINGTON IN A BID TO PRESERVE BOSNIA REVERSE THE ETHNIC CLEANSING AND GAIN OVERALL PEACE WANTS THE SERBS TO JOIN IN THE SOLDIERS HOWL IN DERISION NONSENSE SAYS SGT SLOBODAN RADOVANOVIC US JOINING THE MUSLIMS AND CROATS AFTER TWO YEARS OF WAR AFTER ALL THE DEATHS IT WILL NEVER HAPPEN NEVER THE SERGEANT SWITCHES THE TELEVISION TO A CHANNEL SHOWING CROATIAN MUSIC VIDEOS THEN HE ANNOUNCES HIS OWN NEWS ALL THE DIPLOMATS AND ALL THE POLITICIANS CAN'T PUT BOSNIA BACK TOGETHER AGAIN WE WILL KEEP OUR TERRITORIES WE WILL HAVE OUR STATE HE SAYS IF THEY THINK A FEDERATION WILL BRING PEACE THE BEST FOR US IS TO FIGHT TO THE END THE SERBS ARE INDEED REELING UNDER THE CONCERTED PUSH FROM WASHINGTON AND RUSSIA TO FINALLY STOP THE BOSNIAN CARNAGE THEY DID BUCKLE UNDER WHEN THE NORTH ATLANTIC TREATY ORGANIZATION THREATENED TO BOMB THEIR ARTILLERY AROUND SARAJEVO THEY YIELDED TUZLA AIRPORT TO UNITED NATIONS CONTROL AND THEY SAY THEY ARE PREPARED TO SWAP SOME LAND WITH THE MUSLIMS AS DEMANDED BY INTERNATIONAL DIPLOMATS BUT A FIRM WALL OF RESISTANCE IS BUILDING BEHIND THE BOSNIAN SERBS' FRONT LINES THEY ARE DETERMINED NEITHER TO SURRENDER THE STATE THEY HAVE CARVED OUT IN BLOOD NOR TO BE DENIED THE VICTORY THEY BELIEVE IS THEIRS THE ROAD TO PEACE EXTENDING THE CEASEFIRE IN SARAJEVO TO ALL OF THIS BATTLESCARRED LAND LITERALLY MUST RUN ALONG THE POTHOLED TWOLANE SARAJEVOBELGRADE HIGHWAY FROM THE CRIPPLED BOSNIAN CAPITAL THROUGH THE SNOWCOVERED MOUNTAINS AND HARDSCRABBLE PLAINS OF SERBCONTROLLED EASTERN BOSNIA TO ZVORNIK ON THE DRINA RIVER BORDER WITH SERBIA BUT IT IS 100 MILES OF ROAD CLOGGED WITH MEN IN CAMOUFLAGE UNIFORMS RIFLES SLUNG OVER THEIR SHOULDERS AND PISTOLS AT THEIR HIPS VOWING TO KEEP FIGHTING RATHER THAN LOSE WHAT THEY HAVE CONQUERED IN SARAJEVO'S SERBIAN BARRACKS THE MUSLIMS ARE CONSTANTLY BLAMED FOR CAUSING THE WAR WHILE THE SERBS PITY THEMSELVES FOR THEIR GREAT SUFFERING IT IS A VIEW THAT STANDS IN STARK CONTRAST TO THE ALMOSTUNIVERSAL IMAGE OF THE SERBS AS AGGRESSORS WHO PROVOKED THE BREAKUP OF YUGOSLAVIA IN 1991 THE SERBS ARE WIDELY ACCUSED OF HAVING PERPETRATED ATROCITIES IN THEIR CAMPAIGN TO ETHNICALLY CLEANSE PARTS OF BOSNIA THEY CLAIM AS THEIR OWN THEY HAVE ATTRACTED UN SANCTIONS LOATHING THROUGHOUT THE WEST AND THREATS OF MILITARY RETALIATION THE SOLDIERS HERE SCOFF AT THESE FOREIGN INTERVENTIONS PARTICULARLY THE LATEST PEACE INITIATIVE THE NOTION OF A MUSLIMCROAT UNION AFTER THOSE TWO FACTIONS HAVE HAMMERED EACH OTHER ON THE BATTLEFIELDS OF CENTRAL AND SOUTHERN BOSNIA FOR SO LONG IS THEY BELIEVE UNREALISTIC THE TRUE KEY TO PEACE THEY INSIST IS TO RECOGNIZE THE RESULTS OF THE WAR AND LET BOSNIA SPLINTER WITH THE SERBS FORMING THEIR OWN STATE NATIONALISM IS OUT OF THE BOTTLE YOU CAN'T GO BACK IN TIME SAYS SGT RADOVANOVIC IN ESSENCE THE RECENT DIPLOMATIC INITIATIVES SEEK TO ERASE THE PAST TWO YEARS OF FIGHTING AND BRING BOSNIA'S MUSLIMS CROATS AND SERBS BACK INTO A LOOSELY STITCHED FEDERATION BUT THAT WOULD ALSO MEAN ERASING THE CONVICTIONS OF THE SERB SOLDIERS WHICH HAVEN'T ERODED ONE BIT SINCE THE FIRST DAY OF FIGHTING TIME HAS SHOWN THAT WE CAN'T LIVE WITH THE MUSLIMS SAYS SGT RADOVANOVIC THEY WANTED TO GO OUT OF YUGOSLAVIA AND TAKE OUR LAND WITH THEM IF THEY WANT TO GO THEY CAN ADDS ONE OF HIS SOLDIERS BUT WE WANT TO LIVE TOGETHER WITH OTHER SERBS IN YUGOSLAVIA BEYOND THE BARRACKS CIVILIAN SERBS IN SARAJEVO SHARE THIS ATTITUDE IN A MORTARPOCKED APARTMENT THREE BLOCKS FROM THE MILJACKA RIVER WHICH FORMS THE SERBMUSLIM BOUNDARY IN THIS PART OF THE CITY NIKOLA VULETIC OPENS THE SHUTTERS OF HIS LIVINGROOM WINDOW THE 66YEAROLD JUDGE POINTS TO AN ALCOVE WHERE TWO OTHER APARTMENT HOUSES MEET A GOOD FRIEND OF OURS WAS KILLED THERE HE LAMENTS MUSLIM GRENADE HE PULLS THE SHUTTERS CLOSED WARY OF SNIPERS EVEN DURING THE CEASEFIRE THE JUDGE'S BROTHER VELJKO A 60YEAROLD MATHEMATICS PROFESSOR AT THE NEARBY ENGINEERING COLLEGE COMES FOR A VISIT THE BROTHERS WHO HAVE SPENT THEIR LIVES IN SARAJEVO SAY TOO MUCH BLOOD HAS FLOWED FOR THE CITY LET ALONE BOSNIA TO BE WHOLE AGAIN IT IS POSSIBLE TO LIVE TOGETHER BUT FIRST WE MUST DIVIDE SAYS VELJKO VULETIC WE FIRST MUST HAVE A LINE THAT SAYS THIS IS MINE AND THIS IS YOURS EVEN A UNCONTROLLED OPEN CITY WOULDN'T BLUR THE MENTAL DIVISIONS HE SAYS TODAY WE ARE ENEMIES HOW CAN WE BE FRIENDS TOMORROW THE MATHEMATICIAN RELATES A PARABLE A RABBIT RUNS AWAY FROM BOSNIA TOWARD SERBIA ANOTHER RABBIT STOPS HIM AND ASKS WHY HE IS RUNNING I HEARD THAT THEY ARE GOING TO CASTRATE ALL THE OXEN IN BOSNIA HE SAYS BUT YOU AREN'T AN OX SAYS THE SECOND RABBIT NO SAYS THE FIRST BUT I'M NOT SO SURE I CAN CONVINCE THEM THAT I'M NOT AN OX VELJKO VULETIC LAUGHS SADLY I HAVEN'T KILLED ANYONE NOT A SINGLE PERSON HE SAYS BUT I'M NOT SURE I CAN CONVINCE THE MUSLIMS THAT I'M NOT A KILLER FROM NIKOLA VULETIC'S APARTMENT THE ROAD CLIMBS A MOUNTAIN RANGE WHERE THE 1984 OLYMPIC GAMES WERE HELD AND LEADS TO THE VILLAGE OF PALE ONCE NOTED FOR ITS SCENIC VIEWS PALE NOW IS FAMOUS FOR ITS HARDLINE VIEWS THE HISTORY OF ALL THESE PEACE NEGOTIATIONS HAS BEEN A HISTORY OF SERB CONCESSIONS TO THE MUSLIMS SAYS JOVAN ZAMETICA THE BOSNIA SERB GOVERNMENT SPOKESMAN IT IS A BIZARRE WAR WHERE THE LOSER DICTATES THE TERMS OF PEACE UNLESS PRESSURE IS EXERTED ON ALL SIDES PARTICULARLY ON THE MUSLIMS THIS WAR WILL CONTINUE MR ZAMETICA DRESSED IN BROAD PINSTRIPES LEANS ON THE STEPS OF THE PANORAMA HOTEL WHERE SERB POLITICIANS HAVE SET UP THEIR PROVISIONAL CAPITAL HE IS AWAITING THE ARRIVAL OF ANOTHER UN DELEGATION AND ANOTHER ROUND OF NEGOTIATIONS THE SERBS HE SAYS WILL BE FLEXIBLE BUT PLANNING FOR A PANSERBIAN STATE CONTINUES THIS WAR HAS BROUGHT ABOUT NEW REALITIES THE SPOKESMAN INSISTS AT LEAST 200000 SERBS HAVE BEEN ETHNICALLY CLEANSED IN CENTRAL BOSNIA THEY LEFT UNDER PRESSURE SIMILARLY MANY MUSLIMS HAVE LEFT THEIR HOMES IN EASTERN BOSNIA A POPULATION EXCHANGE HAS TAKEN PLACE SERBIA LAST WEEK BOSNIAN SERBS SEALED A MONETARY UNION WITH WHAT REMAINS OF YUGOSLAVIA THE REPUBLICS OF SERBIA AND MONTENEGRO THE NEXT STEP WOULD BE POLITICAL UNION THE CREATION OF A GREATER SERBIA WE'VE NEVER TRIED TO HIDE OUR DESIRE TO LIVE IN ONE STATE WHERE ALL SERBS ARE TOGETHER SAYS MR ZAMETICA HAVING FOUGHT FOR OUR OWN STATE WHY WOULD WE GO INTO A FEDERATION WITH MUSLIMS AND CROATS NOW THIS POLITICAL THINKING IS INFECTING EVEN POPULAR CULTURE ACROSS PALE THE BOSNIAN SERBS' FIRST TELEVISION SOAP OPERA CALLED NAKED LIFE IS BEING FILMED IT'S ABOUT A LIFE WITHOUT LUXURIES EXPLAINS SLAVKO MILANOVIC THE DIRECTOR IT SHOWS LIFE IN PALE SOLDIERS REFUGEES LACK OF GASOLINE NATO AIRPLANES FLYING ABOVE IT'S BOTH A DOCUMENTARY AND A COMEDY ADDS SCRIPTWRITER MILAN SECEROVIC WE MAKE FUN BUT ONLY ABOUT OURSELVES ABOUT SERBS LEAVING THE MOUNTAINS THE ROAD STRAIGHTENS OUT ON AN OPEN PLAIN AND ARRIVES IN SOKOLAC WHICH IS PACKED WITH SOLDIERS ON LEAVE DURING THE RECENT LULL IN FIGHTING WITH MUSLIMS A SMALL MINORITY OF THE POPULATION BEFORE THE WAR THIS MARKET TOWN OF 35000 HAS BEEN FIRMLY IN SERB CONTROL FROM THE BEGINNING SO ITS MEN HAVE GONE ELSEWHERE TO FIGHT WE ARE VERY GOOD FIGHTERS FROM THIS AREA SAYS CAPT DJORDJO CAJIC HOME FOR THE FIRST TIME IN TWO YEARS WE FINISH WHAT WE START THE TALL 52YEAROLD OFFICER HAS STOOD HIS GROUND ON MANY OF THE MAJOR BATTLEFIELDS SARAJEVO SREBRENICA GORAZDE ZEPA OLOVO AND HELPED THE SERBS COME TO CONTROL 70 OF BOSNIA NOW INTERNATIONAL NEGOTIATORS ARE TRYING TO REDUCE THE SERB SHARE TO 50 AND TO PUT SOME OF THE BIG PRIZES IN MUSLIM HANDS THE MUSLIMS CAN MAKE THEIR DEMANDS BUT WE CAN'T GIVE OUR TERRITORY AWAY HE SAYS THE MUSLIMS ALWAYS WANT MORE THEY'LL NEVER STOP UNTIL THEY TAKE ALL OF BOSNIA FROM THE SERBS BUT THIS IS IMPOSSIBLE WE WILL NEVER ACCEPT THAT IN A WEEK CAPT CAJIC AND HIS MEN WILL HEAD BACK TO THE FRONT AND THERE THEY WILL STAY HE SAYS UNTIL THE WORLD GETS THE MESSAGE WE HAVE MADE OUR STATE HE SAYS SIMPLY ANYONE WHO WANTS TO LIVE WITH US IS WELCOME BUT FOR PEOPLE WHO ARE OUR ENEMIES THERE IS A COURTHOUSE AND A JAIL AND THERE HE WILL BE TOO TO FINISH WHAT HAS BEEN STARTED BEFORE THE WAR HE WAS A CLERK OF A SARAJEVO COURT A JOB THAT AWAITS HIS RETURN FROM SOKOLAC THE ROAD WINDS THROUGH RICH FIELDS AWAITING SPRING PLANTING AND PAST RADIVOJE ORASHANIN WHO STANDS ON THE SHOULDER LEANING OVER THE ENGINE OF A BIG YELLOW TRUCK THE TRUCK IS FULL OF BULLET HOLES FROM THE FIGHTING THAT DESTROYED MOST OF THE BUILDINGS IN NOVA KASABA A VILLAGE WHERE MUSLIMS OUTNUMBERED THE SERBS BEFORE THE WAR TODAY THERE ARE ONLY SERB REFUGEES AND STRAY DOGS THE MUSLIMS SAYS MR ORASHANIN ARE ALL IN SREBRENICA THE BESIEGED ENCLAVE JUST OVER THE HILLS THE MECHANIC SENDS GREETINGS TO AMERICA WHERE HIS COUSIN LIVES IN CHICAGO BEFORE THE WAR I USED TO WORK ON AMERICAN MACHINES CATERPILLARS HE SAYS PROUDLY MY DREAM IS TO ONE DAY SEE THE GRAND CANYON AND HE SENDS A PIECE OF ADVICE IT IS BETTER THAT AMERICANS DON'T MIX IN OUR BUSINESS SERBS HE SAYS WON'T TOLERATE A FEDERATION WITH CROATS AND MUSLIMS NO MATTER HOW MUCH PRESSURE AMERICA EXERTS WISHFUL THINKING HE SCOFFS BESIDES HE SAYS AMERICANS SHOULD BE BACKING THE SERBS DURING WORLD WAR II WE SAVED MANY AMERICAN PILOTS SHOT DOWN OVER YUGOSLAVIA HE EXPLAINS WE REMEMBER THAT MAYBE CLINTON FORGETS HE TURNS BACK TO THE ENGINE COMPLAINING THAT THE SERBS ARE ALONE IN THE WORLD THE TRUCK WILL BE RUNNING IN A COUPLE OF DAYS HE SAYS HIS NEPHEW WILL USE IT TO HAUL WOOD I DON'T GET PAID FOR THIS HE ADDS NOT JUST BECAUSE HE IS MY RELATIVE BUT BECAUSE ONE SERB HELPS ANOTHER THE DRINA RIVER APPEARS AROUND A BEND A BEAUTIFUL BLUEGREEN STRETCH SEPARATING BOSNIA AND SERBIA ZVORNIK AN INDUSTRIAL CITY IS A KEY CROSSING POINT LINKING SERBS WITH SERBS MUSLIMS WERE IN A MAJORITY BEFORE THE WAR THOUGH SERBS DOMINATED THE SURROUNDING AREA AND NOW MUSLIMS INSIST IT SHOULD BE PART OF THEIR STATE THEY SAY IT IS A KEY TO PEACE ON THAT THE SERBS AGREE WHEN THE MUSLIMS ACCEPT THAT ZVORNIK IS A SERBIAN TOWN THAT WILL BE THE END OF THE WAR SAYS DRAGAN SPASOJEVIC THE MANAGER OF ZVORNIK'S LARGEST FACTORY WHICH MADE CERAMIC FIBERS AND DETERGENT POWDER BEFORE THE WAR THE MUSLIMS ALREADY HAVE INDUSTRIAL CENTERS OF SARAJEVO TUZLA ZENICA THEY HAVE NO REASON TO WANT ZVORNIK THE MAIN REASON THEY DO HE CLAIMS IS STRATEGIC TO CUT THE LINK BETWEEN SERBS IN BOSNIA AND SERBIA TO FOIL THE CREATION OF A GREATER SERBIA ZVORNIK IS THE CROSSROADS OF OUR TERRITORY SAYS MR BOGICEVIC THE CITY COUNCIL PRESIDENT THE WAR HAS MADE ETHNICALLY CLEAN AREAS CENTRAL BOSNIA LARGELY MUSLIM CONTROLLED IS ETHNICALLY CLEAN THIS AREA HERE IS ETHNICALLY CLEAN IT IS IMPOSSIBLE TO REVERSE THIS EXCEPT THROUGH MORE WAR ONLY WAR COULD MAKE IT POSSIBLE FOR THE MUSLIMS TO COME BACK HERE HE TAKES A GULP OF SERBIA'S VERSION OF COCACOLA MY UNCLE FOUGHT AGAINST CROATS AND MUSLIMS IN WORLD WAR II NOW 50 YEARS LATER I TRAVEL THE SAME ROAD FIGHTING THE SAME PEOPLE HE SAYS AND IF THE WORLD FORCES US TO JOIN CROATS AND MUSLIMS IN A FEDERATION OUR CHILDREN WILL ALSO TRAVEL THIS ROAD FIGHTING ANOTHER WAR 9403110007 940311 WHO'S NEWS BURRBROWN CORP BURRBROWN CORP TUCSON ARIZ SYRUS P MADAVI WAS ELECTED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS MAKER OF ELECTRONIC COMPONENTS AND SUBSYSTEMS HE SUCCEEDS FRED L HANSON 54 YEARS OLD WHO RESIGNED LAST APRIL MR MADAVI 44 MOST RECENTLY WAS PRESIDENT OF RAYTHEON SEMICONDUCTOR DIVISION A SUBSIDIARY OF RAYTHEON CO 9403110006 940311 INTERNATIONAL BUNDESBANK SHIES FROM LOWER RATES TO CURB INFLATION BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT BUNDESBANK PRESIDENT HANS TIETMEYER SAID GERMAN INFLATION REMAINED DECIDEDLY TOO HIGH AND THAT MONETARY POLICY CANNOT REPLACE NEEDED STRUCTURAL REFORMS AS THE SOURCE FOR GERMAN RECOVERY IN THE 1990S MONETARY POLICIES CANNOT STEER GROWTH OR STRUCTURAL POLICIES MR TIETMEYER SAID IN A SPEECH IN FRANKFURT IT MUST INSTEAD SET OUT MONETARY PARAMETERS THAT STEM EXISTING INFLATIONARY PRESSURES WHILE PREVENTING THE RISE OF NEW INFLATION PRESSURES MR TIETMEYER'S COMMENTS ARE LIKELY TO DISAPPOINT HOPES IN FINANCIAL MARKETS FOR FRESH REDUCTIONS IN GERMAN INTEREST RATES PARTICULARLY AFTER AN ONLY MODEST REDUCTION IN THE CENTRAL BANK'S CHIEF OPENMARKET INTEREST RATE EARLIER IN THE WEEK STILL SOME ANALYSTS WEREN'T SURPRISED GIVEN AN INFLATIONARY 206 SURGE IN GERMAN'S AGGREGATE MONEY SUPPLY IN JANUARY EARLIER IN THE DAY THE GOVERNMENT STATISTICS OFFICE ANNOUNCED AN UPWARD REVISION IN WESTERN GERMAN FEBRUARY ANNUAL INFLATION TO 34 FROM A PREVIOUSLY REPORTED 33 RATE BUT THE FINAL PRICE MEASURE FOR FEBRUARY WAS STILL DOWN FROM 35 IN JANUARY AND 37 IN DECEMBER FEBRUARY'S MONTHLY INFLATION RATE WAS ADJUSTED UPWARD TO A 03 RISE FROM JANUARY REVISING THE PRELIMINARY 02 FIGURE THE AGENCY ALSO ESTIMATED THAT ANNUAL INFLATION CAME IN AT A LOWER 32 RATE WHEN EXCLUDING THE JAN 1 TAX INCREASE ON PETROLEUM PRODUCTS ALTHOUGH THE INFLATION RATE HAS LEVELED OFF SLIGHTLY THE 34 IN FEBRUARY WAS STILL DECIDEDLY TOO HIGH EVEN WHEN ACCOUNTING FOR THE PETROLEUM EFFECT MR TIETMEYER SAID THE TEXT OF HIS SPEECH WAS DISTRIBUTED BY THE BUNDESBANK 9403110005 940311 FORMER LOAN OFFICER OF ABN AMRO UNIT SENTENCED FOR FRAUD CHICAGO A FEDERAL JUDGE SENTENCED A FORMER LASALLE NATIONAL BANK LOAN OFFICER TO 52 MONTHS IN PRISON FOR BANK FRAUD THE US ATTORNEY'S OFFICE HERE SAID IN DECEMBER ROBERT FREDENBURGH 55 YEARS OLD AND NOW A RESIDENT OF PALM BEACH FLA PLEADED GUILTY TO A LONGRUNNING SCHEME IN WHICH HE ISSUED 20 FRAUDULENT LOANS TOTALING 18 MILLION TO GET THE MONEY HE ISSUED 17 NOMINEE LOANS WITHOUT THEIR KNOWLEDGE TO RELATIVES AS WELL AS REAL AND FICTITIOUS BANK CUSTOMERS THEN POCKETED THE LOAN MONEY MUCH OF THE MONEY FROM THE BOGUS LOANS WENT TO FUND A FRIEND'S FAILING REAL ESTATE COMPANY WHICH WAS CARRYING A BIG LOAN AT LASALLE ASSISTANT US ATTORNEY JOHN H NEWMAN SAID HE ADDED THAT THREE OF THE FRAUDULENT LOANS WERE WRONGFULLY MADE TO THE FRIEND 60YEAROLD WILLIAM P JOUGHLIN MR JOUGHLIN AND MR FREDENBURGH EARLIER PLEADED GUILTY TO A CHECKKITING SCHEME DESIGNED TO GENERATE CASH NEEDED TO CONCEAL THE FRAUDULENT LOANS THAT PART OF THE SCHEME COST THE BANK AN ADDITIONAL 953000 PROSECUTORS SAID BESIDES THE 52MONTH JAIL TERM MR FREDENBURGH WAS ORDERED TO PAY RESTITUTION OF 2450000 MR JOUGHLIN WHO NOW LIVES IN NAPLES FLA WAS SENTENCED TO 21 MONTHS IN PRISON AND ORDERED TO PAY 604000 IN RESTITUTION LASALLE IS OWNED BY ABN AMRO HOLDING NV OF THE NETHERLANDS 9403110004 940311 BUSINESS BRIEF ABB ASEA BROWN BOVERI AG NET DECLINED 87 IN 1993 AFTER RESTRUCTURING CHARGE SWISSSWEDISH ENGINEERING AND HEAVYMACHINERY GROUP ABB ASEA BROWN BOVERI AG SAID THAT GROUP NET INCOME FELL 87 TO 68 MILLION IN 1993 AFTER A ONETIME RESTRUCTURING CHARGE OF 596 MILLION WHILE PRETAX PROFIT AFTER FINANCIAL ITEMS ROSE 72 TO 119 BILLION ASEA BROWN BASED IN ZURICH IS JOINTLY OWNED BY ASEA AB OF SWEDEN AND BBC BROWN BOVERI AG OF SWITZERLAND OPERATING PROFIT JUMPED 20 TO 218 BILLION LAST YEAR FROM 181 BILLION IN 1992 IN 1993 REVENUE DECLINED 44 TO 2832 BILLION FROM 2962 BILLION IN 1992 IN ITS FORECAST ASEA BROWN SAID A GRADUAL IMPROVEMENT IN DEMAND FOR INDUSTRIAL PRODUCTS IN EUROPE AND NORTH AMERICA IS EXPECTED IN 1994 HOWEVER SINCE ASEA BROWN'S INVESTMENTGOODS BUSINESS TYPICALLY LAGS IN THE ECONOMIC CYCLE THE FULL IMPACT OF ECONOMIC RECOVERY WILL NOT BE FELT BEFORE 1995 IT SAID 9403110003 940311 ECONOMY TREASURY OFFICIAL PRAISES FISCAL VIRTUE' OF THE US SUGGESTS OTHERS FOLLOW SUIT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONVINCED THAT THE US IS AT LAST IN A STRONG ECONOMIC RECOVERY AND THAT THE US HAS PUT ITS FISCAL HOUSE IN ORDER THE TREASURY'S TOP INTERNATIONAL OFFICIAL SAID THE GOVERNMENTS OF JAPAN AND WESTERN EUROPE NEED TO DO MORE TO GET OUT OF THEIR SLUMP THE WALL STREET JOURNAL LAST WEEK ASKED TREASURY UNDERSECRETARY LAWRENCE SUMMERS FOR HIS PRESCRIPTION FOR WHAT AILS THE GLOBAL ECONOMY THE 39YEAROLD ECONOMIST SAID IT'S HIS VERY STRONG HOPE THAT GERMANY WILL LOWER INTEREST RATES FURTHER THOUGH HE DIDN'T PREDICT WHEN THAT MAY HAPPEN HE DESCRIBED JAPAN'S ECONOMICSTIMULUS PLAN AS NOT ENOUGH NOT SOON ENOUGH AND HE BOASTED THAT THE US GOVERNMENT NOW STANDS OUT FOR ITS FISCAL VIRTUE AMONG THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES HERE ARE EXCERPTS FROM THE INTERVIEW HOW WOULD YOU DESCRIBE THE STATE OF THE WORLD ECONOMY WE'VE GOT A FOUNDATION ON WHICH WE CAN BUILD A STRONG WORLD ECONOMY BUT OUTSIDE OF THE US THE HOUSE ISN'T GOING UP AS FAST AS WE OR OTHER COUNTRIES WOULD LIKE TO SEE WHAT STORM CLOUDS ARE ON THE HORIZON BUDGET DEFICITS ARE ONE BUT FOR A BIG CHANGE NOT THE AMERICAN DEFICIT BUDGET DEFICITS IN EUROPE WILL HAVE TO BE ADDRESSED AS RECOVERY TAKES HOLD THE JAPANESE CURRENTACCOUNT SURPLUS IS ANOTHER CLOUD IT REPRESENTS THE MAJOR ASYMMETRY IN THE WORLD ECONOMY TODAY IN MUCH THE SAME WAY AS THE US BUDGET DEFICIT REPRESENTED A MAJOR ASYMMETRY IN THE WORLD ECONOMY IN THE MID1980S IT HOLDS BACK DEMAND AND IT FUELS PROTECTIONIST MEASURES AN ADDITIONAL CRUCIAL CONCERN IS PROVIDING ADEQUATE LEVELS OF EMPLOYMENT EVERYWHERE THE NUMBER OF PEOPLE WHO ARE NOT WORKING HAS INCREASED SIGNIFICANTLY IN THE US ALMOST ONE IN 10 MEN AGED 25 TO 55 IS NOT WORKING THE FIGURE IS HIGHER IN EUROPE THE PEOPLE WHO ARE NOT WORKING ARE VERY DISPROPORTIONATELY THOSE WITH LESS EDUCATION HAS GERMANY CUT INTEREST RATES SUFFICIENTLY LOWER GERMAN INTEREST RATES WOULD MAKE AN IMPORTANT CONTRIBUTION TO STRENGTHENING DEMAND IN GERMANY AND IN THE REST OF EUROPE BUT LOWER SHORTTERM INTEREST RATES THAT WERE ASSOCIATED WITH HIGHER LONGTERM INTEREST RATES COULD ACTUALLY BE COUNTERPRODUCTIVE SO IT'S A DIFFICULT JOB MANAGING MONETARY POLICY IN EUROPE IT DEPENDS ALSO ON WAGE SETTLEMENTS PROGRESS IN INFLATION THE CREDIBILITY OF FISCAL POSITIONS BUT MY VERY STRONG HOPE WOULD BE THAT CONDITIONS WOULD EVOLVE THAT WOULD MAKE IT BOTH APPROPRIATE AND POSSIBLE FOR INTEREST RATES TO FALL QUITE SIGNIFICANTLY IN EUROPE OBVIOUSLY THE BUNDESBANK'S DECISIONS ARE CRUCIAL IN THAT REGARD IS THE STIMULUS PROPOSED BY THE JAPANESE GOVERNMENT TOO LITTLE TOO LATE NOT ENOUGH NOT SOON ENOUGH SECRETARY LLOYD BENTSEN HAS INDICATED THAT WITH RESPECT TO WHAT IS A PROTRACTED PROBLEM A TEMPORARY TAX CUT IS NOT A VERY STRONG ANSWER THERE IS A NEED FOR STIMULUS THAT IS MULTIYEAR THE CASE FOR A KENNEDYJOHNSON TAX CUT IN JAPAN IS COMPELLING IT'S INTERESTING TO NOTE HOW MANY PEOPLE TALKED IN THE EARLY '60S ABOUT HOW AMERICA'S REAL PROBLEMS WERE STRUCTURAL NOT PROBLEMS OF DEMAND AND HOW WRONG THEY PROVED TO BE THERE ARE IMPORTANT PARALLELS THE CASE FOR FISCAL EXPANSION IN JAPAN IS MUCH STRONGER BECAUSE OF THE OVERLAY OF FINANCIAL DIFFICULTIES AND CHRONIC TRADE SURPLUS THAT WEREN'T PRESENT IN THE US IN THE EARLY 1960S EVEN WITH THE CLINTON HEALTH INITIATIVE THE WHITE HOUSE PROJECTS THE US BUDGET DEFICIT WILL BE ABOVE 2 OF THE GROSS DOMESTIC PRODUCT IN 1999 IS THAT LOW ENOUGH SMALLER DEFICITS WOULD SURELY BE BETTER BECAUSE THEY WOULD MAKE POSSIBLE MORE SAVINGS AND INVESTMENT BUT THE DEFICIT IS NO LONGER OUR DEFINING MACROECONOMIC PROBLEM THE CLEAREST EVIDENCE OF THAT IS THAT MANY EXPLANATIONS FOR THE DISTURBING INCREASE IN LONGTERM BOND YIELDS HAVE BEEN BANDIED ABOUT BUT LITERALLY NO ONE HAS MENTIONED THE BUDGET DEFICIT THE BENEFITS OF FURTHER DEFICIT REDUCTION HAVE TO BE WEIGHED AGAINST THE BENEFITS OF CRUCIAL PUBLIC SPENDING AND POSSIBLE TAX INCENTIVES OUR DEFICITS ARE NO LONGER A CRITICAL INTERNATIONAL ECONOMIC FACTOR WE STAND OUT FOR OUR FISCAL VIRTUE RATHER THAN OUR FISCAL SIN IN G7 MEETINGS WHAT IS OUR DEFINING ECONOMIC PROBLEM RAISING RATES OF GROWTH AND ASSURING THAT THE BENEFITS OF GROWTH ARE MORE EQUALLY SHARED WHAT TANGIBLE RESULTS HAS THE G7 PRODUCED SINCE YOU CAME INTO THE GOVERNMENT WE DIDN'T THINK IT MADE SENSE TO TRY TO PULL RABBITS OUT OF HATS AT G7 MEETINGS I DON'T THINK COUNTRIES TAKE ACTION BECAUSE OTHER COUNTRIES TELL THEM TO BUT THE PROCESS OF CONSULTATION AND COOPERATION MUCH OF IT PUBLICLY INVISIBLE HAS PROBABLY LED TO SOMEWHAT MORE FISCAL STIMULUS IN JAPAN SOMEWHAT MORE INTERESTRATE REDUCTION IN EUROPE SOMEWHAT MORE FISCAL DEFICIT REDUCTION IN THE US THAN OTHERWISE WOULD HAVE TAKEN PLACE THE PROCESS IS A KIND OF INSURANCE POLICY THE FACT THAT THERE WAS A RESPONSIBLE PROCESS OF CONSULTATION AND COOPERATION HAS BEEN A SOURCE OF GREATER STABILITY IN FINANCIAL MARKETS THAN THERE OTHERWISE WOULD BE FINANCIAL MARKETS HAVEN'T EXACTLY BEEN STABLE LATELY HAS THE G7 DONE ANYTHING ABOUT THAT INDIVIDUAL COUNTRIES ARE PURSUING WHAT THEY REGARD AS APPROPRIATE POLICIES AND CONSULTATIONS WE HAVEN'T PULLED A RABBIT OUT OF A HAT IN THE LAST MONTH YOU RECENTLY SAID MONETARY POLICY IS DESTINY THE PROSPECT FOR PEACE AND PROSPERITY FOR THE REST OF THIS CENTURY AND BEYOND DEPEND AS MUCH ON MONETARY POLICIES AS ON ANY OTHER FACTOR WHY CONSIDER HOW MUCH BRIGHTER THE HISTORY OF THE 20TH CENTURY WOULD BE IF HYPERINFLATION HAD BEEN AVOIDED IN GERMANY IN THE 1920S OR IF DEFLATION IN EUROPE AND THE US HAD BEEN AVOIDED IN THE 1930S OR ASK YOURSELF HOW MUCH DARKER HISTORY WOULD HAVE BEEN IF GERMANY AND JAPAN HAD HYPERINFLATED AND THERE HAD BEEN A POSTWAR DEPRESSION A RUSSIA THAT AVOIDS HYPERINFLATION AND MOVES TO A REASONABLY STRONG CURRENCY IS MUCH MORE LIKELY TO BE A PROSPEROUS AND PEACEFUL RUSSIA HEALTHY GROWTH IN THE WORLD ECONOMY DEPENDS ON ENSURING THE FLOW OF CAPITAL TO THE DEVELOPING WORLD IS BOTH STRONG AND SUSTAINED SUCCESSFUL ECONOMIC MANAGEMENT IS AS CLOSE TO A FREE LUNCH AS YOU CAN GET BECAUSE NO ONE REALLY LOSES FROM IT 9403110002 940311 GENERALE DES EAUX PURCHASE PARIS FRENCH MUNICIPAL SERVICES GROUP CIE GENERALE DES EAUX SA SAID ITS HOLDING IN MEDIA GROUP HAVAS SA HAS CLIMBED TO 25 FOLLOWING THE PURCHASE OF A SECOND LARGE BLOCK OF SHARES A SPOKESWOMAN FOR GENERALE DES EAUX SAID IT BOUGHT THE SHARES FROM OIL COMPANY ELF AQUITAINE SA ALTHOUGH GENERALE DES EAUX DECLINED TO SPECIFY THE PRICE PAID FOR THE SHARES MARKET SOURCES SAID THE GROUP PAID AROUND 480 FRANCS 8272 A SHARE THE SPOKESWOMAN SAID GENERALE DES EAUX BOUGHT AROUND 380000 SHARES IN HAVAS WEDNESDAY 9403110001 940311 WHO'S NEWS CELGENE NAMES WRIGHT CHAIRMAN AND CEO WARREN NJ CELGENE CORP A BIOTECHNOLOGY COMPANY NAMED RICHARD G WRIGHT 59 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR WRIGHT A HEALTHCARE INDUSTRY VETERAN HAD BEEN GROUP VICE PRESIDENT FOR STORZ INSTRUMENT CO A UNIT OF AMERICAN CYANAMID CO WHERE HE WAS RESPONSIBLE FOR THE SURGICAL SPECIALTIES DIVISION HE SUCCEEDS JOHN L UFHEIL 60 WHO WILL ALSO RETIRE FROM CELGENE'S BOARD JUNE 1 SOL J BARER CELGENE'S PRESIDENT WILL ASSUME THE ADDITIONAL RESPONSIBILITIES OF CHIEF OPERATING OFFICER AND WAS ELECTED A CELGENE DIRECTOR MR WRIGHT'S APPOINTMENT FOLLOWS CELGENE'S ANNOUNCEMENT IN DECEMBER THAT IT WAS EXPANDING ITS WORK IN IMMUNE THERAPEUTICS THE COMPANY SAID ITS SYNOVIR THALIDOMIDE COMPOUND IS QUICKLY ADVANCING TOWARD HUMAN CLINICAL TRIALS 9403110153 940223 REVIEW & OUTLOOK EDITORIAL THE CHARTER HALFSTEP IN THE SHORT RUN SCHOOL CHOICE IN MOST OF AMERICA IS GOING TO HAVE TO BE LIMITED TO CHARTER PROGRAMS THESE ALLOW INDIVIDUAL PUBLIC SCHOOLS TO BE RUN WITH VARYING DEGREES OF INDEPENDENCE FROM BOARDS OF EDUCATION THIS LATITUDE EXTENDS FROM SIMPLE AND PROBABLY FUTILE SITEBASED MANAGEMENT OF EXISTING RESOURCES TO GENUINE AUTHORITY FOR PRINCIPALS OR OTHER MANAGERS IN SELECTING STAFF CURRICULUM AND MODES OF OPERATION THIS DEGREE OF REFORM ESPECIALLY IF LIMITED TO A RELATIVE HANDFUL OF CAMPUSES SEEMS TO BE ALL THAT THE SCHOOL ESTABLISHMENT IS WILLING TO BROOK AND BECAUSE THAT ESTABLISHMENT THE TEACHER UNIONS THE PTAS THE ADMINISTRATIVE BLOB CONTINUES TO WIELD EFFECTIVE POLITICAL CONTROL IN NEARLY ALL US JURISDICTIONS MORE SERIOUS EXPERIMENTS WITH COMPETITION AND PARENTAL CHOICE ARE LEFT FOR ANOTHER DAY JUST HOW POWERFUL THE PUBLICSCHOOL LOBBY CAN BE AND HOW TENUOUS IS THE HOPE FOR CHARTER SCHOOLS WAS DEMONSTRATED VIVIDLY AT YEAR'S END IN MICHIGAN A DRAMATIC OPPORTUNITY FOR CHANGE PRESENTED ITSELF THERE EARLIER IN 1993 WHEN THE DEMOCRATIC LEGISLATURE REPEALED THE PROPERTYTAX FUNDING BASE FOR THE SCHOOLS IN A DARE TO REFORMGOVERNOR JOHN ENGLER THE GOVERNOR TRIED TO SEIZE THE CHANCE TO MAKE MEANINGFUL CHANGES IN THE SCHOOLS AS WELL AS THE TAX BURDEN BUT VOUCHERS AND THE LIKE WERE NOT TO BE IN A SCENE REMINISCENT OF WHAT'S HAPPENED IN CALIFORNIA AND ELSEWHERE THE SPEAKER OF THE STATE'S HOUSE TEAMED WITH THE MICHIGAN EDUCATION ASSOCIATION TEACHER UNION TO HOLD DEMOCRATS IN LINE WHILE PRESSURING A SUFFICIENT NUMBER OF SUBURBAN REPUBLICANS NOT TO TRY ANYTHING THAT WOULD UPSET THEIR LOCAL SCHOOL CONSTITUENCIES AS A RESULT GOVERNOR ENGLER GOT NOTHING EXCEPT A BIG TAX SHIFT AND A MODEST CHARTER PROGRAM THAT DOESN'T EVEN EXEMPT THE SCHOOLS INVOLVED FROM THE UNION CONTRACTS IN THEIR HOME DISTRICTS IN SOME OF THE EIGHT STATES THAT ALREADY HAVE CHARTER SCHOOLS IN THE WORKS INCLUDING CALIFORNIA AND MASSACHUSETTS THE PROSPECTS MAY BE MORE ENCOURAGING A DOZEN OTHER STATES ARE ACTIVELY CONSIDERING SUCH CAMPUSES RECENTLY A BIPARTISAN GROUP OF INDIANAPOLIS CIVIC LEADERS FORMED A POLITICAL ACTION COMMITTEE DEDICATED TO ELECTING REFORM CANDIDATES IN THE CITY'S MAY ELECTIONS FOR SCHOOL BOARD THE GROUP INCLUDES REPUBLICAN MAYOR STEPHEN GOLDSMITH AND TWO PROMINENT BLACK DEMOCRATS STATE REP WILLIAM CRAWFORD AND COUNCILWOMAN SUSAN WILLIAMS ONE DRAWBACK TO CHARTER SCHOOLS WILL ALWAYS BE THE POLITICAL CONTROL THAT HOVERS OVER ANY PART OF THE PUBLICSCHOOL SYSTEM PARENT INVOLVEMENT POSSIBLY AS DIRECTORS OF A SCHOOL IS KEY TO SUCCESS A CHARTER ARRANGEMENT CAN BE SUITED TO CONTRACTING OUT MANAGEMENT OF AN INSTITUTION TO PRIVATE FIRMS SUCH AS EDUCATION ALTERNATIVES INC IN THE BEST SITUATIONS THE SCHOOLS ARE GIVEN A FEW YEARS TO SHOW RESULTS EVEN WHERE CHARTERS HAVE BEEN ESTABLISHED TIGHT LIMITS HAVE BEEN ESTABLISHED ON THEIR NUMBERS 100 IN CALIFORNIA 25 IN MASSACHUSETTS FOR EXAMPLE REFORMERS IN CALIFORNIA WILL BE TRYING TO BOOST THE CAP THERE TO 1000 DURING THE CURRENT LEGISLATIVE SESSION IN THAT RESPECT IT WILL INTERESTING TO WATCH THE ACTIONS OF DELAINE EASTIN AN ASSEMBLY DEMOCRAT FAVORED TO WIN THE STATE SCHOOL SUPERINTENDENCY THIS FALL SHE HAS BEEN THE EDUCATION ESTABLISHMENT'S CHIEF LIEUTENANT IN THE STATEHOUSE THE NATIONAL TEACHER UNIONS HAVE DANCED AROUND THE CHARTER IDEA ALWAYS SEEKING TO IMPOSE CONDITIONS THAT LIMIT THE LEEWAY OF PARENTS AND PRINCIPALS ON THE GROUND HOWEVER THE RESISTANCE HAS BEEN FIERCER ONE REASON THAT CALIFORNIA STILL HAS FEWER THAN HALF THE ALLOTTED NUMBER OF CHARTERS IS THAT LOCAL UNIONS AND SOMETIMES SCHOOL BOARDS HAVE DISCOURAGED THEM THIS PRESSURE CAN BE PERSONAL AS WELL AS POLITICAL BUT ITS MOTIVATION IS USUALLY THE SAME PROTECT THE MEDIOCRE AT THE EXPENSE OF THE GOOD THE LIBERAL SACRAMENTO BEE WAS COMPELLED TO CHASTISE THE UNION IN THAT CITY RECENTLY FOR BLOCKING A CHARTER PROGRAM BECAUSE IT WOULD PERMIT TEACHERS TO BE HIRED ON MERIT RATHER THAN SENIORITY NEVERTHELESS A POLITICAL CONSENSUS SEEMS TO HAVE GELLED AROUND THE CONCEPT THE REASON AS IN CALIFORNIA MAY BE A DESIRE TO HEAD OFF MORE REVOLUTIONARY CHANGES SUCH AS VOUCHERS BUT THE DYNAMICS OF THE PROCESS ARE UNPREDICTABLE IT MAY TURN OUT THAT CHARTERS EITHER THROUGH SUCCESS OR FAILURE WILL MAKE FULL COMPETITION IN SCHOOLING POSSIBLE LATER ON SEE RELATED LETTER LETTERS TO THE EDITOR LET'S REVOLUTIONIZE PUBLIC EDUCATION WSJ MARCH 11 1994 9402230099 YY94 MM03 9403110111 940214 FUNDING SET FOR SETTLEMENT OVER IMPLANTS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ALMOST ALL MAJOR US MAKERS OF SILICONE BREAST IMPLANTS HAVE STRUCK A DEAL OVER FUNDING A 4 BILLION LIABILITYSETTLEMENT PLAN PRACTICALLY ASSURING THE WORLD'S BIGGEST PRODUCTLIABILITY AGREEMENT WILL BE PRESENTED FOR COURT APPROVAL UNDER THE PACT DOW CORNING CORP BRISTOLMYERS SQUIBB CO BAXTER INTERNATIONAL INC AND THEIR INSURERS WILL PAY FOR AT LEAST 79 OF THE SETTLEMENT SAY NEGOTIATORS INVOLVED IN THE LENGTHY TALKS THE THREE ALONG WITH SEVERAL COMPANIES WITH SMALLER LIABILITY REACHED THE DEAL IN PHILADELPHIA OVER THE WEEKEND WITH FIVE PLAINTIFFLAWYER NEGOTIATORS THE OTHER COMPANIES WOULD PAY THE REMAINDER OF THE COSTS HOWEVER NEGOTIATORS SAID THREE OTHER COMPANIES MINNESOTA MINING & MANUFACTURING CO GENERAL ELECTRIC CO AND MCGHAN MEDICAL CORP WHICH HAD BEEN EXPECTED TO PAY FOR 15 OF THE FUND DROPPED OUT OF THE DEAL AT LEAST FOR NOW THESE CONCERNS ARE EXPECTED TO CONTINUE BARGAINING WITH A PLAINTIFFLAWYER NEGOTIATING TEAM AND WILL EITHER ENTER THE AGREEMENT LATER OR LITIGATE CASES INDIVIDUALLY SAY PARTICIPANTS IN THE TALKS THE EFFECT OF THEIR DEPARTURE IS TO REDUCE THE SIZE OF THE PLAN TO JUST OVER 4 BILLION FROM A PREVIOUSLY PROJECTED 475 BILLION IF YOU HAVE A DEAL ON FUNDING YOU HAVE A DEAL SAID ONE PARTICIPANT IN THE TALKS THERE ARE A DOZEN OR SO CRITICAL ISSUES WHICH COULD STILL POSE PROBLEMS BUT I THINK IT'S INEVITABLE NOW THAT THERE WILL BE A DEAL AMONG THE PROVISIONS OVER WHICH SOME HAGGLING WILL CONTINUE ARE CLAUSES THAT LEADING PLAINTIFF PRODUCTSLIABILITY ATTORNEYS HAVE ATTACKED AS UNFAIR TO MANY WOMEN WITH IMPLANTS ONE PARTICIPANT CONFIRMED THAT SOME OF THOSE ISSUES WILL BE REOPENED IN TALKS DURING THE NEXT FEW WEEKS THE LEGAL TERMS OF THE SETTLEMENT HAD BEEN PUT IN PLACE LAST SEPTEMBER BUT ONLY IN RECENT WEEKS HAD MANUFACTURERS AGREED ABOUT HOW TO APPORTION LIABILITY IN TALKS LAST WEEK FIRST IN DALLAS AND THEN IN PHILADELPHIA THE CORPORATE DEFENDANTS WON CONCESSIONS OVER THE TIMING OF FUNDING THE INITIAL 15 BILLION PAYOUT THAT AMOUNT NOW WILL BE PAID OVER FOUR YEARS INSTEAD OF THE THREE ORIGINALLY AGREED TO IN SEPTEMBER THE ACTUAL VALUE IN CURRENT DOLLARS IS ESTIMATED TO BE ABOUT 70 OF THE TOTAL BECAUSE MANY OF THE PAYMENTS WILL BE DEFERRED ACCORDING TO ONE PARTICIPANT IN THE TALKS THE TALKS INVOLVED THREE DEFENSE LAWYERS FIVE PLAINTIFF LAWYERS AND THREE CURRENT OR FORMER FEDERAL JUDGES SERVING AS MEDIATORS BEFORE IT BECOMES FINAL ANY DEAL MUST BE SCRUTINIZED IN COURT AND APPROVED BY FEDERAL DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM ALA ALL FEDERAL BREASTIMPLANT CASES WERE CONSOLIDATED BEFORE JUDGE POINTER AFTER THOUSANDS OF CASES WERE FILED CLAIMING THAT SILICONE IMPLANTS CAUSED IMMUNESYSTEM AND OTHER ILLNESSES CURRENTLY THERE ARE AN ESTIMATED 12000 BREASTIMPLANT LIABILITY CASES FILED IN FEDERAL AND STATE COURTS THE FOOD AND DRUG ADMINISTRATION HAS SHARPLY LIMITED IMPLANTS' SALE AND MOST OF THE COMPANIES IN THE LITIGATION DON'T MAKE THEM ANYMORE BAXTER NEVER DID BUT INHERITED LIABILITY THROUGH A MERGER ONE ISSUE STILL TO BE NEGOTIATED INVOLVES THE PLAINTIFFS' DESIRE TO GET CORPORATE DEFENDANTS TO GUARANTEE THEIR PARTICIPATION IN THE DEAL ONCE THE JUDGE SIGNS OFF ON IT AS THE PLAN IS WRITTEN NOW ANY COMPANY COULD DROP OUT AND NOT FUND ITS PORTION IF IT CONCLUDED THAT TOO MANY WOMEN HAD OPTED OUT OF THE PLAN AND PURSUED THEIR OWN LITIGATION THE AGREEMENT SETS OUT ABOUT 4 BILLION TO COMPENSATE OVER 30 YEARS ALL US AND FOREIGN IMPLANT RECIPIENTS WITH CERTAIN SYMPTOMS AND DISABILITIES OF THAT AMOUNT THE INITIAL 15 BILLION WOULD COMPENSATE WOMEN WHO ARE CURRENTLY ILL AN ADDITIONAL 800 MILLION IN INITIAL FUNDS WOULD BE SET ASIDE FOR SPECIFIC PURPOSES INCLUDING SURGICAL REMOVAL OF IMPLANTS DIAGNOSIS OF ILLNESS AND COMPENSATION OF WOMEN WITH RUPTURED IMPLANTS THE PLAN ALSO HAS AN INNOVATIVE FEATURE THROUGH WHICH A WOMAN CAN BE COMPENSATED MORE THAN ONCE IF HER ILLNESS WORSENS OVER TIME THE SETTLEMENT PLAN WOULD SET A CEILING ON POTENTIALLY HUGE FUTURE LIABILITY FOR THE CORPORATIONS INVOLVED GIVING THEM SOME FINANCIAL CERTAINTY IT ALSO MIGHT ELIMINATE A HOST OF CASES BROUGHT INDIVIDUALLY THAT COULD CLOG THE COURTS BUT THE PLAN HAS PROVISIONS THAT HAVE BEEN CRITICIZED BY SEVERAL PLAINTIFFS' ATTORNEYS AS TOO GENEROUS TO SOME WOMEN AND EXCEEDINGLY STINGY TO OTHERS FOR INSTANCE EVEN WOMEN WHO GOT SICK BEFORE GETTING IMPLANTS COULD COLLECT MONEY IF THEIR SYMPTOMS LATER WORSENED AS A RESULT ONE PLAINTIFFS' LAWYER WHO ASKED NOT TO BE IDENTIFIED SAYS A CLIENT WITH A CASE SO POOR SHE DIDN'T EVEN BOTHER TO FILE IT COULD COLLECT 1 MILLION UNDER THE DEAL SUCH CASES COULD DEPLETE THE FUND AT THE EXPENSE OF OTHER WOMEN PLAINTIFFS ATTORNEYS ALSO COMPLAIN ABOUT A PROVISION THAT COULD CUT OFF ACCESS TO THE COURTS FOR SOME WOMEN WOMEN WOULD AUTOMATICALLY BE INCLUDED IN THE DEAL AND LOSE THE ABILITY TO SUE ON THEIR OWN IF THEY DON'T OPT OUT BY NOTIFYING THE COURT BUT IN ADDITION WOMEN WHO WANT TO PARTICIPATE MUST CLEAR A PROCEDURAL HURDLE THEY MUST REGISTER WITH THE COURT IN A TIMELY FASHION AT THE BEGINNING OF THE PLAN UNLESS THEY CAN SHOW GOOD CAUSE FOR NOT HAVING DONE SO OR LOSE ALL LEGAL REMEDIES ACCORDING TO LAWYERS INVOLVED IN THE LITIGATION CRITICS SAY THIS COULD BE UNFAIR TO WOMEN WHO ARE HEALTHY NOW AND FEEL THEY HAVE NO REASON TO REGISTER WITH THE COURT BUT WHO BECOME SICK LATER ATLANTA LAWYER RALPH I KNOWLES JR WHO NEGOTIATED THE DEAL FOR THE PLAINTIFFS CALLS THIS A HARSH PROVISION THAT DEFENDANTS INSISTED ON I DON'T LIKE IT AND IT WOULDN'T UPSET ME IF THE JUDGE REJECTED THE PROVISION MR KNOWLES SAYS ADVANTAGES OF THE SETTLEMENT INCLUDE AN EFFICIENT CLAIMSPAYING PROCESS UNDER WHICH WOMEN CAN BE PAID WITHOUT HAVING TO GO THROUGH A LENGTHY PROCESS OF PROVING THAT THEIR ILLNESS WAS CAUSED BY THE IMPLANT HE ALSO SAYS THAT WITHOUT THE FUNDS AVAILABLE IN THE SETTLEMENT WOMEN WHO GOT IMPLANTS FROM SMALLER COMPANIES WOULD GET NOTHING BAXTER BRISTOLMYERS AND DOW CORNING WHICH IS A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC ALL DECLINED TO COMMENT ON CRITICISM OF THE PLAN SEE RELATED LETTER LETTERS TO THE EDITOR BREAST IMPLANT LINKS TO ILLNESS UNRESOLVED WSJ MARCH 11 1994 9402140031 YY94 MM03 9403110039 940131 GOVERNORS' DILEMMA BUDGETS OUT OF CONTROL BY STEPHEN MOORE AMERICA'S GOVERNORS ARE NOW IN WASHINGTON ATTENDING THEIR ANNUAL MEETING IF HISTORY IS ANY GUIDE THEY WILL BE SEEKING MORE FEDERAL DOLLARS TO HELP BALANCE THEIR BUDGETS WHILE BLAMING THEIR FISCAL CRISES ON UNCLE SAM WHILE SOME OF THE BLAME RESTS WITH CONGRESS'S MANDATES THE TRUTH IS THAT STATES HAVE FACED FOUR CONSECUTIVE YEARS OF IMBALANCED BUDGETS PRIMARILY BECAUSE OF THEIR OWN SPENDING AND TAX POLICIES IN THE 1980S STATE BUDGETS MORE THAN DOUBLED SETTING THE STAGE FOR AN ERA OF FISCAL DETERIORATION IN THE 1990S MOST GOVERNORS TRIED TO CLOSE THOSE DEFICITS BY RAISING TAXES STATE LAWMAKERS HAVE JUSTIFIED THESE TAX HIKES BY INSISTING THAT NEW REVENUES WERE COUPLED WITH DEEP SPENDING CUTS NOTHING COULD BE FURTHER FROM THE TRUTH NATIONWIDE STATE SPENDING GREW BY 10 IN 1991 AND AN ENORMOUS 12 IN 1992 NOT COINCIDENTALLY THE GOVERNORS WHO RAMMED THROUGH LARGE TAX INCREASES IN THE EARLY 1990S HAVE ALSO APPROVED THE FASTEST GROWTH IN GOVERNMENT EXPENDITURES FORTUNATELY NOT ALL GOVERNORS HAVE PURSUED THE TAXHIKE ROUTE THE ACCOMPANYING TABLE SHOWS THE RESULTS OF A JUSTRELEASED FISCAL POLICY REPORT CARD PREPARED BY MY COLLEAGUE DEAN STANSEL AND MYSELF IT RELIES ON 14 INDICATORS OF FISCAL PERFORMANCE AS MEASURED BY THE CENSUS BUREAU AND THE NONPARTISAN NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS THESE INCLUDE SUCH VARIABLES AS PERCAPITA SPENDING AND THE CHANGE IN TAX REVENUES AND RATES THE DIFFERENT STRATEGIES ADOPTED BY GOVERNORS IN THE EARLY 1990S HAVE TRANSLATED INTO DRAMATIC CHANGES IN STATE TAX BURDENS AND SPENDING HERE IS A SUMMARY OF THE PERFORMANCE OF SOME PROMINENT GOVERNORS PETE WILSON OF CALIFORNIA RAMMED THROUGH THE LEGISLATURE A GIGANTIC 7 BILLION TAX INCREASE IN 1991 THE LARGEST STATE TAX HIKE IN AMERICAN HISTORY IN THREE YEARS MR WILSON HAS RAISED VIRTUALLY EVERY STATE TAX IMAGINABLE THE INCOME TAX THE SALES TAX THE GASOLINE TAX THE CIGARETTE TAX AND A HOST OF OTHER FEES THE TAX INCREASES HAVE SO DEVASTATED THE ECONOMY THAT ONLY A FRACTION OF THE PROJECTED REVENUES HAVE BEEN DELIVERED AND THUS BIG BUDGET DEFICITS REMAIN MARIO CUOMO HAS GOVERNED AS IF HE NEVER MET A SPENDING PROGRAM HE DIDN'T LIKE IN 10 YEARS MR CUOMO TOOK THE NEW YORK BUDGET FROM LESS THAN 50 BILLION TO 75 BILLION NEW YORK SPENDS 6000 MORE PER FAMILY TODAY THAN IT DID WHEN MR CUOMO WAS FIRST INAUGURATED IN 1983 NEW YORK IS NOW SADDLED WITH WHAT THE NEW YORK TIMES CALLS A ROTTEN CREDIT RATING THE WORST AMONG THE 50 STATES BUT MR CUOMO'S TAX POLICIES HAVE BEEN SUPPLYSIDE HE CHOPPED THE TOP TAX RATE IN THE STATE TO 8 FROM 14 A POLICY THAT HELPED TO PRODUCE A REVENUE WINDFALL UNFORTUNATELY MR CUOMO EAGERLY SPENT IT ANN RICHARDS BOASTS OF BEING A FISCALLY MODERATE DEMOCRAT BUT THE EVIDENCE SUGGESTS OTHERWISE IN HER FIRST YEAR THE TEXAS BUDGET GREW BY AN ENORMOUS 115 IN REAL TERMS OR MORE THAN 650 PER FAMILY THAT SPENDING BURST OUTPACED ALL BUT A SMALL HANDFUL OF STATES TEXAS HAS NO CORPORATE OR PERSONAL INCOME TAX BUT GOV RICHARDS HAS WASTED NO TIME RESORTING TO AN ASSORTMENT OF OTHER BUSINESS TAXES AND GAS TAX HIKES TO BRING MORE REVENUE INTO AUSTIN JOHN ENGLER HAS HELPED CATAPULT MICHIGAN ONCE DERIDED AS THE RUSTBELT STATE INTO ONE OF THE FASTEST GROWING STATES IN THE UNION LAST YEAR MICHIGAN'S UNEMPLOYMENT RATE FELL BELOW THE NATIONAL AVERAGE FOR THE FIRST TIME IN 25 YEARS MR ENGLER HAS CUT THE STATE WORK FORCE BY 4000 WORKERS ELIMINATED AN ENTIRE DEPARTMENT AND HALVED SPENDING ON THE ARTS COMMERCE LABOR AND CIVIL RIGHTS HE ABOLISHED THE STATE'S GENERAL ASSISTANCE WELFARE PROGRAM FOR SOME 80000 EMPLOYABLE ADULTS THUS DISPROVING THE IRON RULE THAT ENTITLEMENTS CANNOT BE ELIMINATED LOWELL WEICKER OF CONNECTICUT HAS WON THE MANTLE AS AMERICA'S CHAMPION TAXANDSPEND GOVERNOR EDGING OUT NEW JERSEY'S JIM FLORIO FOR THIS IGNOMINIOUS DISTINCTION FOLLOWING A DECADE WHEN CONNECTICUT'S BUDGET INCREASED BY 150 MR WEICKER'S SOLUTION TO THE RESULTING RED INK WAS TO ENACT A MASSIVE TAX HIKE IN 1991 MR WEICKER WON NARROW SUPPORT IN THE LEGISLATURE FOR THE STATE'S FIRST PERSONAL INCOME TAX IN EXCHANGE FOR A DECLINE IN THE STATE SALES TAX FOR THE AVERAGE CONNECTICUT TAXPAYER THIS WAS A ROTTEN DEAL THE REAL TAX BURDEN HAS CLIMBED BY 2000 PER FAMILY OVER ROUGHLY THIS SAME PERIOD 198992 REAL INCOME PER FAMILY IN CONNECTICUT HAS DROPPED BY SOME 2000 AND JOBS HAVE BEEN DISAPPEARING KIRK FORDICE IS MISSISSIPPI'S FIRST REPUBLICAN GOVERNOR IN 115 YEARS A SELFMADE BUSINESSMAN MR FORDICE HAS PURSUED AN UNAPOLOGETIC PROBUSINESS PROJOBS AGENDA HE HAS REFUSED TO CONSIDER ANY TAX HIKES AS PROMISED INSTEAD TRIMMING THE BUDGET BY NEARLY 5 OVER HIS FIRST TWO YEARS IN OFFICE BECAUSE OF MR FORDICE'S TIGHTFISTEDNESS THE BUDGET IS NOW RUNNING A SURPLUS AND HE WANTS TO ERASE IT BY CUTTING INCOME TAXES MIKE LOWRY OF WASHINGTON HAS SET OUT TO AS THE ALMANAC OF AMERICAN POLITICS PUTS IT MAKE WASHINGTON A LABORATORY FOR LIBERAL REFORM MR LOWRY PLEDGED DURING THE 1992 CAMPAIGN TO RAISE TAXES ONLY AS A LAST RESORT THEN HE RAISED TAXES BY 1 BILLION AS A FIRST RESORT THE MONEY WILL BE USED FOR A UNIVERSAL HEALTH CARE PROGRAM WHICH REQUIRES BUSINESSES TO PROVIDE INSURANCE FOR ALL EMPLOYEES THE TAXPAYER COST TO COVER THE UNINSURED IS EXPECTED TO TOP 2 BILLION BY 2000 SO FAR MR LOWRY LOOKS TO BE THE JIM FLORIO OF THE WEST THE MAJOR FISCAL POLICY LESSON FROM THE STATES IN THE 1990S SO FAR HAS BEEN THAT THOSE GOVERNORS WHO TRIED TO COMBAT BUDGET DEFICITS WITH MAJOR TAX INCREASES HARMED THEIR STATES' ECONOMIES WHILE HAVING VERY LITTLE SUCCESS SLOWING THE TIDE OF RED INK CALIFORNIA CONNECTICUT NEW JERSEY RHODE ISLAND AND PENNSYLVANIA ARE ALL UNHAPPY TESTAMENTS TO THE ECONOMIC CONSEQUENCES OF RAISING STATE TAXES MEANWHILE THE BUDGETCUTTING FISCAL STRATEGY EMPLOYED BY GOVS ENGLER FORDICE MERRILL WELD AND WILDER HAS LED TO BALANCED BUDGETS AND IMPROVED ECONOMIC CONDITIONS IN FACT MOST OF THESE GOVERNORS HAVE NOW PROPOSED TAX CUTS TO FURTHER ENCOURAGE BUSINESS AND JOB FORMATION THERE IS A LESSON HERE NOT JUST FOR STATE POLICY MAKERS BUT FOR CONGRESS AND THE WHITE HOUSE AS WELL MR MOORE IS DIRECTOR OF FISCAL POLICY STUDIES AT THE CATO INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR TEACHER MADE MISTAKE ON OUR REPORT CARD WSJ MARCH 11 1994 9401310062 YY94 MM03 9403100154 940310 MARKETSCAN WOMEN SHOW WHAT THEY THINK OF PANTYHOSE LESS AND LESS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL HOSIERY MARKETERS CALL THEM SHEER INDULGENCE AND SHEER CARESS BUT TO MANY WOMEN PANTYHOSE ARE A SHEER NUISANCE AFTER YEARS OF TUGGING ON AND COMPLAINING ABOUT PANTYHOSE MORE WOMEN HAVE BEGUN WEARING TIGHTS SOCKS PANTS OR SIMPLY GOING BARELEGGED DATA GATHERED FROM SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE TELL THE STORY IN 1993 UNIT SALES OF PANTYHOSE FELL 75 TO 5145 MILLION UNITS WHILE DOLLAR SALES FELL 68 TO 12 BILLION SALES OF SARA LEE CORP'S POPULAR L'EGGS BRAND WHICH HAS 42 OF THE MARKET IN MASS OUTLETS FELL 51 IN 1993 TO 2163 MILLION UNITS ACCORDING TO INFOSCAN WEARING HOSIERY IS LIKE PAYING TAXES SAYS KARI BLAKE SENIOR EDITOR OF HOSIERY & UNDERWEAR A TRADE PUBLICATION WHENEVER THE SUBJECT COMES UP WOMEN WILL START COMPARING HORROR STORIES BETTY HOWSER A DALLAS MARKET RESEARCHER IS ONE PANTYHOSE DRIVE ME CRAZY SHE SAYS BECAUSE HER SHEER HOSE WAS SO OFTEN RUINED BY THE SHARPEDGED FURNITURE AT HER OFFICE SHE STARTED WEARING TIGHTS THEY COST MORE BUT ARE LESS EXPENSIVE IN THE LONG RUN SHE SAYS MOST HOSIERY MARKETERS AGREE THE DROP IN PANTYHOSE SALES REFLECTS A FUNDAMENTAL SHIFT IN THE WAY WOMEN DRESS THE NEED TO BE COMFORTABLE FOR MOST WOMEN IS OVERWHELMING THE MARKET SAYS DOROTHY RAINEY WOMEN'S HOSIERY BUYER FOR JC PENNEY CO'S 1200 STORES I DON'T THINK THE HOSIERY BUSINESS WILL EVER BE THE SAME AS IT WAS EVEN TWO YEARS AGO GENERATIONS OF WOMEN HAVE TAKEN THEIR HOSIERY VERY SERIOUSLY AFTER WORLD WAR II WHEN THE US GOVERMENT LIFTED RESTRICTIONS ON NYLON 10000 WOMEN CAUSED A NEAR RIOT IN SAN FRANCISCO THE DAY THE FIRST SHIPMENTS OF NYLON STOCKINGS ARRIVED WHEN THE MINISKIRT TOOK OFF IN THE 1960S WOMEN GOT HOOKED ON THE NEWLY INVENTED PANTYHOSE BUT TO MAKE PANTYHOSE LAST LONGER THAN ONE OR TWO WEARINGS WOMEN FOUND THEMSELVES DOING BIZARRE THINGS LIKE SOAKING THEM IN VINEGAR OR STORING THEM IN THE FREEZER YOU PAY 5 TO SPEND THE DAY SAUSAGED IN PANTYHOSE THAT NEVER FIT RIGHT SNAPS WANDA SHERLEE AN ATLANTA BANK TELLER AND THEN YOU HAVE TO THROW THEM OUT JUST BECAUSE YOU'VE GOT A RUN IN ONE LEG DESPITE ALL THE COMPLAINTS THE NATIONAL ASSOCIATION OF HOSIERY MANUFACTURERS SAYS WOMEN SPEND MORE THAN 24 BILLION A YEAR ON PANTYHOSE IN MASSMARKET OUTLETS DEPARTMENT STORES AND SPECIALTY SHOPS AND THE AVERAGE WOMEN BUYS ABOUT 17 PAIRS A YEAR BUSINESSWOMEN ARE THE HEAVIEST USERS AND THE MOST EXASPERATED THEY'RE A TOTAL RIPOFF SAYS NICOLE REILLY A CHICAGO PUBLICRELATIONS MANAGER WHO RUNS THROUGH A COUPLE OF PAIRS OF 650 HOSIERY EVERY WEEK TO TRY TO ASSUAGE THIS GROWING DISGUST HOSIERY MAKERS HAVE BEEN DEVELOPING NEW PRODUCTS HOSIERY MAKERS SAY TODAY'S PANTYHOSE ARE ALREADY MORE DURABLE BECAUSE STRETCHY SPANDEX FIBER IS NOW BLENDED WITH NYLON BUT THE BIGGEST BREAKTHROUGH OF THE 1990S WHICH MAY WELL BE THE SALVATION FOR THE HOSIERY INDUSTRY WAS THE INTRODUCTION OF BODY SHAPERS AND BODY TONERS HOSIERY EUPHEMISMS FOR FORTIFIED PANTYHOSE THAT WORK LIKE A GIRDLE AND ARE AIMED AT WOMEN OVER 30 THE DESIGNER DONNA KARAN WAS THE FIRST ON THE MARKET WITH HER BODY TONERS WHICH ARE MADE BY HANES AND PRICED FROM 1250 TO 1850 THEY HAVE AMASSED 5 MILLION IN SALES SINCE THEY WERE INTRODUCED IN 1991 THEY GIVE THE ILLUSION OF AN AEROBICS BODY WITHOUT HAVING TO GO TO THE GYM MS KARAN SAYS TODAY HOSIERY HAS TO BE USESPECIFIC RATHER THAN FOR GENERAL PURPOSE SAYS KEITH ALM SENIOR VICE PRESIDENT PERSONAL PRODUCTS OF SARA LEE WHICH SELLS MORE THAN 1 BILLION OF HOSIERY EACH YEAR THROUGH ITS L'EGGS AND HANES DIVISIONS WOLFORD A BRAND IMPORTED FROM AUSTRIA SELLS WHAT SOME WOMEN CONSIDER ONE OF THE FINEST LONGESTLASTING BRANDS OF SHEER HOSE ON THE MARKET WOLFORD MAINTAINS THAT ITS SHEEREST STYLES LAST 15 OR 20 WEARINGS THE WOLFORDS ARE ALMOST BULLETPROOF SAYS LINDA WELLS EDITOR OF ALLURE MAGAZINE BUT DURABILITY IS EXPENSIVE WOLFORD PANTYHOSE COST AN AVERAGE OF 40 A PAIR HOSIERY MAKERS SAY WOMEN CAN'T HAVE IT BOTH WAYS TO BE DURABLE HOSE MUST HAVE THICKER YARNS IT'S NOT LIKE SOMEONE IS SITTING ON A SECRET SAYS SUSAN DANISH VICE PRESIDENT GENERAL MANAGER OF THE CALVIN KLEIN HOSIERY DIVISION OF KAYSERROTH CORP THE SHEEREST PANTYHOSE ARE MADE FROM THINNER FIBERS AND ARE FRAGILE AND SNAG ON THINGS A NEW BRAND BROOKE SHIELDS FOREVER SHEER INTRODUCED THIS YEAR AT SUPERMARKETS AND MASSMERCHANDISE CHAINS AND DRUGSTORES FOR ABOUT 350 A PAIR OFFERS AN UNCONDITIONAL GUARANTEE AGAINST RUNS BUT NOT HOLES THE TECHNOLOGY IS HERE YOU CAN GET A HIGHTECH KNITTING MACHINE TO DO WHATEVER YOU WANT SAYS STEVE RILEY NATIONAL SALES MANAGER OF INTERNATIONAL PANTYHOSE INC MAKER OF FOREVER SHEER WHICH USES WHAT HE CALLS A CATCH STITCH KNIT THAT RESISTS RUNS FOREVER SHEER HAS ALREADY WON OVER AN IMPORTANT ADVOCATE LYDIA JUSTICE EDWARDS THE STATE TREASURER OF IDAHO WHO HAS BECOME A SORT OF RALPH NADER FOR THE PANTYHOSE CROWD AFTER PROTESTING TO HOSIERY MANUFACTURERS THAT PANTYHOSE ARE A WASTE OF MONEY BECAUSE THEY RUN AND TEAR EASILY SHE WAS INVITED TO APPEAR ON THE PHIL DONOHUE AND MAURY POVICH TALK SHOWS LAST YEAR SINCE THEN SHE HAS BEEN BOMBARDED WITH SAMPLES AND SHE HAS TRIED SEVERAL BRANDS HER FAVORITE SO FAR IS FOREVER SHEER ALL THESE NEW STYLES BOTH TEMPT AND CONFUSE WOMEN FOR EXAMPLE HANES'S POPULAR SILK REFLECTIONS LINE OFFERS 447 DIFFERENT STYLES AND COLORS A YEAR INCLUDING SHEER SANDALFOOT CONTROL TOP REINFORCED TOE KNEE HIGHS LIGHT SUPPORT THIGH HIGHS AND SHAPERS ALL IN DIFFERENT COLORS WITH DIFFERENT NYLON AND SPANDEX COMBINATIONS SOME WOMEN THINK THAT IT MAY JUST BE EASIER TO STICK WITH THEIR OLD FAVORITES MS REILLY THE CHICAGO PUBLICRELATIONS MANAGER SAYS SHE'S WORN KAYSERROTH'S CALVIN KLEIN BRAND FOR YEARS BUT FINDING THE RIGHT SHADE IN ANOTHER BRAND SAND DUNE SEA SHELL AND PEBBLE LOOK ALMOST THE SAME IN THE PACKAGE IS DAUNTING I WOULD LIKE TO SWITCH BRANDS SHE SAYS BUT I KNOW THAT I'D HAVE TO KEEP THROWING THEM IN THE TRASH BECAUSE THE SIZES ARE WRONG OR THE COLORS ARE HEINOUS 9403100153 940310 GRIM PROCEDURE FLEET FINANCIAL'S PLAN TO REDUCE ITS PAYROLL INVOLVED LONG PROCESS ASKED OVER MANY MONTHS FOR SAVINGS EMPLOYEES PUT OWN JOBS AT RISK NEARLY 20000 IDEAS OFFERED BY G BRUCE KNECHT AND SUZANNE ALEXANDER RYAN STAFF REPORTERS OF THE WALL STREET JOURNAL PROVIDENCE RI ON THE MORNING OF FEB 17 ROGER BALL COMMITTED WHAT MAY TURN OUT TO BE CAREER SUICIDE THE 54YEAROLD EXECUTIVE WITH FLEET FINANCIAL GROUP INC NEW ENGLAND'S LARGEST BANK HOLDING COMPANY WALKED INTO ITS TWOSTORY BOARDROOM AT 1045 THAT DAY FIVE MEN WERE THERE WAITING FOR HIM CHAIRMAN TERRENCE MURRAY THREE VICE CHAIRMEN AND THE CHIEF FINANCIAL OFFICER WITHIN MINUTES MR BALL RECOMMENDED THAT HIS DEPARTMENT BE MERGED INTO ANOTHER A MOVE THAT WOULD ELIMINATE 10 JOBS AND JEOPARDIZE HIS OWN AFTER A 15MINUTE DISCUSSION THE SENIOR EXECUTIVES HEARTILY APPROVED THE RECOMMENDATION THANKED MR BALL AND EXCUSED HIM AS SOON AS HE HAD LEFT THEY DECIDED NEITHER HE NOR THE OTHER DEPARTMENT HEAD WAS A LIKELY CANDIDATE TO MANAGE THE COMBINED GROUP THEN THEY SUMMONED THE NEXT EXECUTIVE FOR THE NEXT COSTCUTTING IDEA SO IT GOES IN THE DOWNSIZING SLAUGHTERHOUSE WHERE THE KNIFE MEETS THE PAYROLL TODAY ACCORDING TO THE COMPANY MR MURRAY WILL ANNOUNCE THAT BY THE END OF THE 1995 FIRST QUARTER FLEET'S COSTREDUCTION PROGRAM WILL SHRINK ITS 21000BANKEMPLOYEE ROSTER BY 5500 POSITIONS LARGELY THROUGH 3000 LAYOFFS FLEET'S 5000 NONBANK EMPLOYEES AREN'T AFFECTED ITS ANNUAL OPERATING EXPENSES WILL FALL BY 300 MILLION AND THE BANK EXPECTS REVENUE TO INCREASE 50 MILLION BECAUSE THE SAVINGS WOULD ALMOST EQUAL FLEET'S RECORD 1993 PROFIT OF 488 MILLION STOCKHOLDERS CAN HOPE FOR SUBSTANTIAL GAINS IN ITS EARNINGS AND PRESUMABLY THE PRICE OF ITS STOCK A BEHINDTHESCENES LOOK AT WHAT FLEET IS PUSHING ITSELF THROUGH ILLUMINATES WHAT IS GOING ON ALL OVER CORPORATE AMERICA COMPETITION SPURS SOME COMPANIES TO TRIM DOWN AND THAT'S ONE REASON FLEET DECIDED TO TEAR UP THE BANK AS MR MURRAY PUTS IT FLEET AND OTHER BANKS ARE BEGINNING TO FACE UP TO THE FACT THAT NONBANK PROVIDERS OF FINANCIAL SERVICES CAN DO JUST ABOUT EVERYTHING BANKS CAN MORE CHEAPLY IN ADDITION FLEET IS CONCERNED ABOUT SURVIVING THE BANKING INDUSTRY'S RAPID CONSOLIDATION TO REMAIN INDEPENDENT FLEET MUST INCREASE ITS PROFITABILITY AND ITS STOCK PRICE WE WANT TO PLAY IN THE GAME SAYS JAY SARLES ONE OF FLEET'S VICE CHAIRMEN BUT WE WANT TO DO IT FROM A POSITION OF STRENGTH SO WE'RE NOT GOBBLED UP OURSELVES FLEET HAS EXPRESSED AN INTEREST IN A POSSIBLE MERGER OF EQUALS WITH ANOTHER MAJOR BANK YET DOWNSIZING CAN BE RISKY TOO BHARAT BHATT CHIEF FINANCIAL OFFICER AT SHAWMUT NATIONAL CORP OF HARTFORD CONN A FLEET COMPETITOR THAT HAS ALREADY GONE THROUGH SUCH A PROGRAM WARNS THAT A COMPANY CAN LOSE OUT IF IT REDUCES ITS STAFF TOO MUCH AND THE ECONOMY TAKES OFF MANY OF THE COSTSAVING IDEAS THAT FLEET WILL IMPLEMENT ARE SIMPLE BUT THE PROCESS THAT PRODUCED THEM IS COMPLICATED AND HARROWING BOTH FOR THOSE WHO WILL LOSE THEIR JOBS AND FOR THE EXECUTIVES WHO NOW MUST EVALUATE THEMSELVES PARTLY BY HOW MANY JOBS THEY ELIMINATE I AM A TOUGH AND OPPORTUNISTIC BUSINESSMAN BUT I NEVER WANT TO GO THROUGH THIS AGAIN SAYS VICE CHAIRMAN MICHAEL ZUCCHINI IT'S EXHAUSTING PHYSICALLY INTELLECTUALLY AND EMOTIONALLY AND NO LESS SO FOR FLEET'S EMPLOYEES THEY HAVE BEEN ON TENTERHOOKS EVER SINCE LAST JULY WHEN MR MURRAY SENT ALL OF THEM A LETTER ANNOUNCING THE PROJECT AND THE INEVITABILITY OF LAYOFFS I'M APPREHENSIVE SAYS RONALD OHSBERG A REALESTATE VICE PRESIDENT EVERYONE HERE IS EVERY JOB AT THE COMPANY IS UP FOR GRABS THEY COULD EASILY ELIMINATE YOUR POSITION EVEN AFTER TODAY'S ANNOUNCEMENT HE AND MOST EMPLOYEES WON'T KNOW THEIR FATES MR MURRAY PROMISES THE DETAILS BY APRIL 15 YOUR LIFE IS ON HOLD UNTIL THEY MAKE DECISIONS SAYS CRIS SACCOCCIO AN ADMINISTRATIVE ASSISTANT IN PROVIDENCE WHO HAS DELAYED MOVING TO A BETTER NEIGHBORHOOD FLEET ISN'T TAKING ANY CHANCES ON ADVERSE REACTIONS IT RECENTLY INSTALLED ELECTRONICALLY OPERATED GLASS DOORS AT THE ENTRANCE OF ITS EXECUTIVE SUITE OPPOSITE THE DOORS SITS A SECURITY GUARD THOUGH THE PROJECT FLEET FOCUS '94 BEGAN LAST SUMMER THE SEED WAS PLANTED EARLIER IN THE YEAR BY A PARTNER AT KOHLBERG KRAVIS ROBERTS & CO WHICH BECAME FLEET'S LARGEST SHAREHOLDER AFTER HELPING FINANCE FLEET'S BIGGEST ACQUISITION BANK OF NEW ENGLAND CORP THE KKR MAN MICHAEL TOKARZ ADVISED MR MURRAY TO MEET WITH CHANDRIKA TANDON WHO HEADS HER OWN CONSULTING FIRM AND HAD HELPED TWO TROUBLED BANKS MIDLANTIC CORP AND RIGGS NATIONAL SLASH OPERATING COSTS TALKING TO MS TANDON MR MURRAY AGREED WITH ALMOST EVERYTHING THE 39YEAROLD NATIVE OF INDIA SAID THE BIG QUESTION WAS COULD OUR PEOPLE PSYCHOLOGICALLY TAKE IT MR MURRAY WONDERED WE HAD BEEN THROUGH SOME ROUGH TIMES AND HERE PEOPLE THOUGHT THE CRISIS WAS OVER EVENTUALLY HE RECALLS I DECIDED THAT WE REALLY DIDN'T HAVE A CHOICE MS TANDON IMPOSED SOME UNUSUAL CONDITIONS SHE INSISTED THAT SHE GET AN OFFICE ADJACENT TO MR MURRAY'S AND THAT HE DEVOTE AT LEAST HALF HIS TIME TO THE EIGHTMONTH PROJECT SHE ALSO WANTED TO DEPUTIZE 200 SENIOR EXECUTIVES 50 WOULD WORK FULLTIME ON THE PROJECT AND 150 WOULD SPEND AT LEAST HALF THEIR TIME ON IT MS TANDON AND BANK OFFICIALS WON'T DISCLOSE HER COMPENSATION INDUSTRY SOURCES SAY SHE WILL GET A PERCENTAGE OF THE SAVINGS REALIZED SHE MOVED INTO AN APARTMENT NEAR THE BANK'S HEADQUARTERS WORKS 14HOUR DAYS AND SEES HER HUSBAND AND YOUNG DAUGHTER ONLY ON WEEKENDS MS TANDON AND HER SEVEN FULLTIME EMPLOYEES OVERSAW THE PROJECT BUT STAYED IN THE BACKGROUND TO LET FLEET EMPLOYEES PLAY THE LEADING ROLES IN FINDING COSTS TO CUT THE TANDON PEOPLE BROUGHT THE PROCESS THEY DIDN'T DO IT TO US SAYS DENNIS MURPHY ONE OF THE 150 PARTTIME EXECUTIVES MS TANDON HAD NOTHING BUT PRAISE FOR THE WAY THE BANK IMPLEMENTED HER PROGRAM THE BANK'S TOP FIVE OFFICERS BECAME THE PROJECT'S STEERING COMMITTEE AND PICKED 50 PROMISING EXECUTIVES AS THE FULLTIME CONSULTANTS THESE EXECUTIVES SOON KNOWN AS THE NIFTY FIFTY LEFT THEIR USUAL JOBS IN AUGUST TO STUDY PARTS OF THE BANK THEY KNEW NOTHING ABOUT WORKING OUT OF RENTED OFFICES AT 40 WESTMINSTER ST ACROSS AN INTERSECTION FROM BANK HEADQUARTERS THEY WERE JOINED IN EARLY SEPTEMBER BY THE 150 MANAGERS WHO REPRESENTED ALL OF THE MAJOR OPERATING GROUPS THE CONSULTANTS SPENT SEPTEMBER CLOISTERED IN 40 WESTMINSTER STUDYING VARIOUS BANK OPERATIONS AND THEIR BUDGETS IN OCTOBER THEY FANNED OUT TO CONDUCT MORE THAN 600 BRAINSTORMING SESSIONS WITH ABOUT 6500 EMPLOYEES ASKING PARTICIPANTS WHAT THEY DISLIKED ABOUT THEIR JOBS THEY SOUGHT SPECIFIC IDEAS FOR REDUCING WASTE IMPROVING SERVICE AND INCREASING REVENUE UNDER THE GROUND RULES ANY INVESTMENTS SUCH AS IN EQUIPMENT HAD TO PAY FOR THEMSELVES WITHIN ONE YEAR THE PROCESS TURNED UP A LOT OF SURPRISES FOR EXAMPLE FLEET PAYS 380 APIECE FOR SOME OF ITS ANNUAL SUBSCRIPTIONS TO THE AMERICAN BANKER A TRADE NEWSPAPER AND AS MUCH AS 700 FOR OTHERS IT SPENDS 500000 A YEAR TO PROVIDE EMPLOYEES WITH FREE COFFEE PLUS 400000 FOR THE CUPS THE TRUST DEPARTMENT CHARGES ANYWHERE FROM 3500 TO 45000 TO MANAGE SIMILARSIZED ACCOUNTS BRANCH OFFICERS SEEKING TO MOLLIFY CUSTOMERS WAIVE 10 MILLION OF BOUNCEDCHECK FEES A YEAR IT MAKES YOU WONDER HOW WE EVER MADE A PROFIT MR MURRAY SAYS THOUGH MORALE HAD PLUMMETED IN THE WAKE OF THE CHAIRMAN'S LETTER EMPLOYEES EMBRACED THE OPPORTUNITY TO TALK ABOUT THEIR JOBS AND TO SUGGEST HOW THE COMPANY COULD BECOME MORE EFFICIENT WE GOT A CHANCE TO PUT A LOT OF THINGS ON THE TABLE AND TO COMPLAIN ABOUT A LOT OF THINGS THAT ARE REALLY SENSELESS SAYS DEREK WILSON AN ACCOUNTSERVICES REPRESENTATIVE IN PROVIDENCE AFTER TWO HOURS OF BRAINSTORMING HE SAYS WE FELT LIKE WE HAD HAD A CHANCE TO CHANGE THE BANK MR WILSON SAYS EVERYONE AT THE MEETING KNEW THAT THEIR JOBS COULD BE ELIMINATED PERHAPS AS A CONSEQUENCE OF THEIR OWN RECOMMENDATIONS THEY TOLD US NOT TO WORRY ABOUT IT THAT IT WOULD NOT HAPPEN FOR A WHILE HE ADDS EVEN SO SOME EMPLOYEES TO THE ASTONISHMENT OF THE NIFTY FIFTY SEEMED TO DISREGARD THEIR SELFINTEREST WE WATCHED THE HEAD OF THE APPRAISAL DEPARTMENT SUGGEST THAT WE OUTSOURCE APPRAISALS OF PROPERTY THAT THE BANK WAS CONSIDERING AS COLLATERAL FOR LOANS SAYS STEPHEN POLLACK A NIFTY FIFTY MEMBER WHO CONDUCTED SEVERAL BRAINSTORMING SESSIONS THE PEOPLE THERE KNEW THAT APPRAISAL SKILLS AREN'T READILY TRANSFERABLE TO OTHER BANK JOBS THERE WERE A COUPLE OF SECONDS OF SILENCE AND THEN THAT KINDOFNERVOUS LAUGHTER HE RECALLS THE NERVOUSNESS WAS JUSTIFIED THE APPRAISERS WILL BE CUT TO 48 FROM 97 THE PROCESS INEVITABLY LED TO A BIT OF POSTURING ROBERT BURNS ONE OF SEVEN REGIONAL CONTROLLERS AND A PARTTIME CONSULTANT APPEARED MAGNANIMOUS IN TELLING HIS TEAM THAT CONTROLLERS' JOBS WERE UNNECESSARY BOB IS A GUY WHO SUGGESTED ELIMINATING HIS OWN JOB SAYS GENE MCQUADE THE CHIEF FINANCIAL OFFICER MR BURNS HOWEVER SAYS HE WAS ONLY BEING REALISTIC I KNEW THAT IF I DIDN'T DO IT THEY WOULD THINK I WASN'T THE RIGHT GUY TO HAVE AROUND IN NOVEMBER THE TEAMS RETREATED TO 40 WESTMINSTER WITH ALMOST 20000 IDEAS THEY THREW OUT THE NONSTARTERS SOMEONE PROPOSED A CENTRAL COLLECTION POINT FOR USED RUBBER BANDS THOSE REFLECTING SIMMERING BITTERNESS SEVERAL PEOPLE SUGGESTED THAT EXECUTIVES SHOULD NO LONGER PLAY GOLF ON COMPANY TIME AND THE MERELY REDUNDANT AFTER THAT 7000 SUGGESTIONS WERE LEFT THE TEAMS BEGAN TO ESTIMATE THE POTENTIAL SAVINGS AS WELL AS THE RISKS AND WINNOWED THE LIST TO 5200 IDEAS INEVITABLY MANY OF THE IDEAS WOULD LEAD TO LAYOFFS THE COSTCUTTING TEAMS TRIED TO THINK ABOUT POSITIONS RATHER THAN INDIVIDUALS BUT THE ULTIMATE HUMAN TOLL GRADUALLY BECAME LESS AND LESS ABSTRACT IT'S ALWAYS BEEN IN THE BACK OF MY MIND JOANNA ROBBINS ANOTHER OF THE NIFTY FIFTY SAYS EVEN THOUGH I TRIED TO LOOK AT IT FROM THE COMPANY'S POINT OF VIEW BOB TWOMEY WHO WORKED PART TIME ON THE PROJECT SAYS I WOKE UP IN THE MIDDLE OF THE NIGHT THINKING ABOUT IT ADDS BRIAN MOYNIHAN WE ALL AGREE IT HAS TO BE DONE BUT THAT DOESN'T MAKE IT ANY EASIER THOUGH THE FIVE EXECUTIVES ON THE STEERING COMMITTEE WERE FULLY BRIEFED ALONG THE WAY NO FORMAL DECISIONS WERE MADE UNTIL THE SESSIONS IN THE BOARDROOM OVER NINE DAYS FROM 8 AM TO 8 PM 104 TEAM LEADERS CAME ONE AFTER ANOTHER TO OFFER RECOMMENDATIONS ONE EXECUTIVE SAID THE BANK COULD ELIMINATE 154 OF ITS 5000 TELLERS AND 29 MILLION IN SALARIES IF IT LET THEM MAKE MORE DECISIONS BY ALLOWING THEM TO DO SUCH THINGS AS CASH CHECKS FOR UP TO 2500 WITHOUT SEEKING A MANAGER'S APPROVAL INSTEAD OF THE CURRENT 1000 LIMIT TELLERS WOULD SAVE AN AVERAGE 30 MINUTES A DAY HE CONTENDED DONE THE COMMITTEE SAID THE BOARDROOM IS FORMAL BUT THE ATMOSPHERE SURROUNDING THE EXTRAORDINARY PROCESS WAS INFORMAL PERHAPS DECEPTIVELY SO WE'VE TRIED TO MAKE IT AS COLLEGIAL AS POSSIBLE MR MCQUADE THE CHIEF FINANCIAL OFFICER WHISPERED DURING THE PROCEEDINGS IF WE MADE IT TOO STRUCTURED PEOPLE WOULD JUMP OUT OF THEIR SKINS THEY ALSO MIGHT QUAKE IF THEY KNEW WHAT HAPPENED AFTER THEY LEFT THE ROOM SECONDS AFTER ROGER BALL MADE HIS PERHAPSSUICIDAL RECOMMENDATION MR MURRAY WAS WONDERING ALOUD WHO WOULD HEAD THE COMBINED GROUP IT'S A BIG BUSINESS HE SAID THERE'S OBVIOUSLY GOING TO BE A LOT OF PRESSURE TO USE THE BODIES WE HAVE SO THAT WE CAN ELIMINATE SEVERANCES AND THAT'S FINE BUT WE SHOULD ALSO LOOK OUTSIDE A SPOKESMAN SAYS HE DOESN'T KNOW WHETHER MR BALL WOULD HAVE A JOB IN THE RESTRUCTURED FLEET EARLIER ON THE SAME MORNING THAT MR BALL WENT TO THE BOARDROOM MARSHALL RAUCCI PROPOSED THAT 11 INSTITUTIONALSALES MANAGERS WHO REPORT TO HIM BE LAID OFF WHILE MR MURRAY SHIFTED HIS GAZE BETWEEN HIS SUBORDINATES AND A 700PAGE NOTEBOOK ONE OF 19 DESCRIBING THE COSTSAVINGS IDEAS MR RAUCCI EXPLAINED HOW ONLY THREE SALES MANAGERS COULD DO THE WORK NOW BEING DONE BY 14 AFTER BEING TOLD THAT THE MOVE WOULD SAVE 791000 IN SALARIES WITHOUT REDUCING THE NUMBER OF SALESPEOPLE ACTUALLY CALLING ON CUSTOMERS VICE CHAIRMAN SARLES BLURTED GOOD MR RAUCCI DIDN'T GET THIS APPROVAL ON HIS FIRST VISIT TO THE BOARDROOM A FEW DAYS EARLIER IN THAT SESSION HE DID NOT RECOMMEND ELIMINATING THE 11 POSITIONS MR MURRAY CONVINCED THAT MR RAUCCI'S TEAM COULD DO BETTER INSTRUCTED MR SARLES TO PASS THE WORD THEY WERE THE ONLY GROUP THAT DID NOT EMBRACE THE PROCESS THE CHAIRMAN SAYS I SENT THE WORD DOWN THAT THEY EITHER HAD TO GET ON THE TRAIN OR IT WAS GOING TO LEAVE WITHOUT THEM ON MR RAUCCI'S RETURN VISIT HIS RECOMMENDATIONS YIELDED ALMOST DOUBLE THE SAVINGS MR MCQUADE THE FINANCE CHIEF OBSERVES WE'VE BEAT THESE GUYS UP PRETTY GOOD MR MURRAY ADMITS HE WAS AMAZED BY THE ESTIMATED SAVINGS THE PROJECT PRODUCED IN FACT HE SAID IN A RECENT INTERVIEW THE ESTIMATES ARE SO BIG WE MAY SCARE OURSELVES INTO REDUCING THEM A FEW MINUTES LATER THOUGH HE ADDED IN A NOTICEABLY HARDER TONE I DON'T THINK WE'LL DO THAT WE ARE GOING TAKE EVERY DOLLAR WE'RE NOT GOING TO GO THROUGH ALL THIS AND NOT GET EVERYTHING WE CAN OUT OF IT ON MONDAY MR MURRAY CONVENED FLEET'S BOARD FOR A THREEDAY MEETING TO BRIEF DIRECTORS ON FLEET FOCUS '94 BUT THE VENUE FOR THE MEETING THE BREAKERS HOTEL IN PALM BEACH WHERE THE LEAST EXPENSIVE ROOMS ARE QUOTED AT 285 A NIGHT SUGGESTS THAT FLEET STILL HAS PRIORITIES OTHER THAN COSTCUTTING SOME EXECUTIVES WERE SENSITIVE TO THE BOARD DISCUSSING MASSIVE LAYOFFS IN POSH SURROUNDINGS BUT FLEET SAID IT DECIDED TO MAINTAIN THE TRADITION OF HOLDING ITS MARCH BOARD MEETING IN FLORIDA 9403100152 940310 SERVTECH GETS CONTRACT HOUSTON SERVTECH INC SAID IT WAS AWARDED A CONTRACT FOR CONSTRUCTION AND CONSTRUCTION MANAGEMENT OF THE CLEAN FUELS PROJECT AT MOBIL OIL CORP'S TORRANCE CALIF REFINERY THE CONTRACT HAS A VALUE OF AS MUCH AS 40 MILLION SERVTECH A SPECIALTY CONSTRUCTION COMPANY SAID THE PROJECT WILL BEGIN IMMEDIATELY AND IS SCHEDULED FOR COMPLETION IN MID1995 9403100151 940310 WHO'S NEWS JOSTENS INC JOSTENS INC MINNEAPOLIS ROBERT C BUHRMASTER 46YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF CLASS RINGS YEARBOOKS AWARDS AND EDUCATION PRODUCTS SUCCEEDING BILL LURTON WHO RETIRED IN OCTOBER THE POST OF CHIEF OPERATING OFFICER WHICH MR BUHRMASTER WILL RELINQUISH WON'T BE FILLED 9403100150 940310 WHO'S NEWS INTERLINQ SOFTWARE CORP INTERLINQ SOFTWARE CORP KIRKLAND WASH ROBERT O'REAR 50 YEARS OLD A RETIRED MANAGER OF INTERNATIONAL SUBSIDIARY DEVELOPMENT FOR MICROSOFT CORP WAS ELECTED TO THE BOARD OF THIS SOFTWARE CONCERN SUCCEEDING JOHN MOSER 58 WHO RESIGNED 9403100149 940310 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN SUSAN M WALTER 46 YEARS OLD WAS NAMED VICE PRESIDENT GOVERNMENT RELATIONS SUCCEEDING PHILLIPS S PETER 62 WHO IS RETIRING MS WALTER WAS VICE PRESIDENT STATE GOVERNMENT RELATIONS GE'S BUSINESSES INCLUDE CONSUMER AND INDUSTRIAL PRODUCTS BROADCASTING AIRCRAFT ENGINES AND FINANCIAL SERVICES 9403100148 940310 COMAIR PASSENGER BOARDINGS RISE CINCINNATI COMAIR HOLDINGS INC THE PARENT COMPANY OF AIRLINE COMAIR SAID PASSENGER BOARDINGS FOR FEBRUARY WERE UP 217 TO 220490 FROM THE YEAREARLIER LEVEL OF 181196 REVENUE PASSENGER MILES A MEASURE OF ONE PASSENGER FLYING ONE MILE INCREASED 412 TO 593 MILLION FROM THE YEAREARLIER 42 MILLION THE LOAD FACTOR THE PERCENTAGE OF AVAILABLE SEAT MILES SOLD TO PAYING PASSENGERS WAS 463 UP FROM 455 9403100147 940310 WHO'S NEWS GEON CO GEON CO CLEVELAND ELECTED DIRECTORS WERE HARRY A HAMMERLY EXECUTIVE VICE PRESIDENT LIFE SCIENCES SECTOR AND INTERNATIONAL OPERATIONS OF MINNESOTA MINING & MANUFACTURING CO D LARRY MOORE PRESIDENT AND CHIEF OPERATING OFFICER OF HONEYWELL INC AND R GEOFFREY P STYLES CHAIRMAN OF GROSVENOR INTERNATIONAL HOLDINGS LTD THE MEN SUCCEED JOHN N LAUER D LEE TOBLER AND JON V HEIDER OF BF GOODRICH CO WHO LEFT THE BOARD AS A RESULT OF GOODRICH'S REDUCTION OF ITS GEON STOCK HOLDINGS GEON PRODUCES VINYL AND VINYL RESINS 9403100146 940310 INTERNATIONAL SOUTH KOREA'S JOBLESS RATE SEOUL SOUTH KOREA SOUTH KOREA'S JOBLESS RATE ROSE 04 PERCENTAGE POINT TO 28 IN 1993 FROM A YEAR EARLIER REFLECTING CONTINUED ECONOMIC WEAKNESS AND CORPORATE DOWNSIZING THE NATIONAL STATISTICAL OFFICE SAID THE NUMBER OF UNEMPLOYED PEOPLE INCREASED BY 87000 OR 188 TO 551000 PEOPLE 9403100145 940310 WEDNESDAY'S MARKETS FED REPORT LIFTS BONDS STOCKS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL GOOD NEWS ON INFLATION SPARKED A REBOUND IN BOND PRICES STOCK PRICES WERE MIXED AS WAS THE DOLLAR THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 169 POINTS TO 385341 STANDARD & POOR'S 500STOCK INDEX ROSE 118 TO 46706 AND THE NASDAQ COMPOSITE INDEX GAINED 093 TO 79305 THE FEDERAL RESERVE BOARD WHICH ROILED FINANCIAL MARKETS RECENTLY BY RAISING FEARS OF INFLATION DELIVERED A SOOTHING MESSAGE YESTERDAY IN ITS BEIGE BOOK THE FED'S REPORT ON ECONOMIC ACTIVITY SAID INFLATION PRESSURES WERE LIMITED AND THAT THE ECONOMY EXPANDED MODERATELY IN THE FIRST TWO MONTHS OF THE YEAR THE MARKET WAS FOCUSED ON ONE THING WHAT WOULD THE BEIGE BOOK SAY ABOUT INFLATION SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS THE VERDICT IS THAT INFLATION IS NOT A PROBLEM AND THAT HEARTENED BOTH THE BOND AND STOCK MARKETS THOUGH BOND PRICES ROSE BOND TRADERS WERE RELUCTANT TO CELEBRATE MANY FEAR THAT DESPITE THE POSITIVE INFLATION NEWS THE FED STILL WILL BOOST INTEREST RATES AGAIN LATER THIS MONTH THE INDUSTRIAL AVERAGE OVERCAME A DECLINE OF MORE THAN 20 POINTS EARLY IN THE SESSION TO EKE OUT ITS SMALL GAIN MR SOHN SAID THE STOCK MARKET'S TONE REMAINS SOMBER AS INVESTORS ANTICIPATE FURTHER INCREASES IN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 043 TO 11517 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3098 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1098 ISSUES FELL AND 1034 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 683 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17025 MARKS AND 10580 YEN COMPARED WITH 17143 MARKS AND 10537 YEN TUESDAY 9403100144 940310 INTERNATIONAL WESTERN GERMANY JANUARY SALES COLOGNE GERMANY WESTERN GERMAN RETAIL TRADING SALES IN JANUARY FELL A REAL 2 FROM A YEAR EARLIER AND STAGNATED IN NOMINAL TERMS THE FEDERATION OF GERMAN RETAIL TRADERS SAID INCREASED SALES HOWEVER WERE SEEN IN THE AREAS OF TWOWHEELED VEHICLES AND FURNITURE WHICH BOTH GREW A NOMINAL 13 IN THE YEAR MUSIC STORES WHERE SALES WERE UP 8 AND HOUSEWARES AND HARDWARE UP 7 EACH COMPARED WITH DECEMBER RETAIL SALES IN JANUARY WERE DOWN AN AVERAGE 37 AS THE END OF CHRISTMAS SHOPPING CAUSED SALES TO DROP ACROSS ALL SECTORS 9403100143 940310 BUSINESS BRIEF LOUISIANAPACIFIC IS CONSIDERING SALE OF PART OF ITS KETCHIKAN PULP CO UNIT PORTLAND ORE LOUISIANAPACIFIC CORP SAID IT MAY SELL PART OF ITS KETCHIKAN PULP CO UNIT WHICH IS THE FOCUS OF A BITTER ENVIRONMENTAL FIGHT OVER LOGGING AND POLLUTION IN ALASKA'S ANCIENT FORESTS LP INDICATED THAT IT IS MULLING THE SALE BECAUSE KETCHIKAN PULP IS NO LONGER PART OF WHAT LP CONSIDERS ITS CORE BUSINESSES LUMBER AND OTHER BUILDING MATERIALS KETCHIKAN PULP BASED IN KETCHIKAN ALASKA NEAR THE GIANT TONGASS NATIONAL FOREST RUNS TWO SAWMILLS BUT ITS MAIN BUSINESS IS A BIG MILL THAT MAKES DISSOLVABLE PULP THE MARKET FOR DISSOLVABLE PULP IS SLUMPING BECAUSE OF WEAK DEMAND AND GLOBAL OVERCAPACITY KETCHIKAN PULP IS A SMALL PART OF LP'S BUSINESS CONTRIBUTING ONLY ABOUT 158 MILLION OF THE PARENT COMPANY'S 25 BILLION IN 1993 SALES THE DISSOLVABLE PULP MILL IS CONSIDERED BY ENVIRONMENTALISTS AND FEDERAL REGULATORS AS ONE OF THE WORST WATER POLLUTERS IN THE COUNTRY THE FEDERAL BUREAU OF INVESTIGATION HAS RAIDED THE MILL TWICE IN THE PAST 18 MONTHS TO COLLECT EVIDENCE FOR A CONTINUING PROBE OF POSSIBLE CRIMINAL VIOLATIONS OF FEDERAL ENVIRONMENTAL LAWS IN ADDITION THE FEDERAL GOVERNMENT HAS FILED A CIVIL SUIT AGAINST KETCHIKAN PULP ALLEGING MYRIAD VIOLATIONS OF THE FEDERAL CLEAN AIR ACT AND AND CLEAN WATER ACT AN LP SPOKESMAN SAID THE COMPANY HAS NO COMMENT ON THE CRIMINAL PROBE AND SAID THAT IT IS NEGOTIATING TO SETTLE THE CIVIL SUIT HE SAID UPGRADES AND IMPROVEMENTS AT THE PULP MILL EITHER HAVE SOLVED OR WILL SOON SOLVE THE FACILITY'S POLLUTION PROBLEMS SOME ANALYSTS QUESTIONED WHETHER LP CAN FIND A BUYER ALTHOUGH LP SAYS KETCHIKAN PULP HAD PRETAX 1993 OPERATING EARNINGS OF 20 MILLION THE UNIT WOULD PROBABLY HAVE HEAVY LOSSES IF ITS LONGTERM CONTRACT IS REVOKED OR REVISED 9403100142 940310 WHO'S NEWS SMITHKLINE BEECHAM PLC SMITHKLINE BEECHAM PLC LONDON JOSEPH J MCENROE 55 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER AT THE NORTH AMERICAN CONSUMER PRODUCTS DIVISION OF THIS HEALTHCARE CONCERN MR MCENROE PREVIOUSLY HELD THE SAME POSITION FOR THE DIVISION'S US REGION HIS RESPONSIBILITIES ARE BEING EXPANDED TO INCLUDE CANADA 9403100141 940310 WHO'S NEWS CHECKERS DRIVEIN RESTAURANTS INC CHECKERS DRIVEIN RESTAURANTS INC CLEARWATER FLA JAMES F WHITE JR WAS NAMED PRESIDENT OF THIS FASTFOOD CONCERN SUCCEEDING JAMES E MATTEI MR WHITE 54 YEARS OLD HAS BEEN CHIEF OPERATING OFFICER SINCE FEBRUARY 1993 MR MATTEI 45 CITED FAMILY AND PERSONAL REASONS FOR HIS RETIREMENT HE WILL REMAIN A DIRECTOR 9403100140 940310 LEISURE & ARTS TV HEADMASTER IN HAWAII UNCLE MILTIE SIN AND HOLLYWOOD BY DOROTHY RABINOWITZ A SCHOOL HEADMASTER DRAGS HIS CHILDREN OFF TO HAWAII WHERE A NEW JOB AS WELL AS NUMEROUS OTHER ADVENTURES CULTURAL AND ROMANTIC AWAIT HIM THE SCHOOLMASTER HAS HIS WORK CUT OUT FOR HIM AS DO THE SCRIPTWRITERS FOR WITH THE EXCEPTION OF THE YOUNGEST RYAN O'DONOHUE HIS PROGENY ARE AS UNAPPETIZING A SET OF WHINY ADOLESCENTS AS HAS HIT THE SCREEN THIS SEASON NOT MUCH KEEPS THE THE BYRDS FROM FLYING OFF IN DULL DIRECTIONS EXCEPT TIMOTHY BUSFIELD WHO BRINGS A CRISP AUTHORITY TO THE ROLE OF THE FATHER THE SCENERY DOESN'T HURT EITHER THIS HOURLENGTH DRAMA IS SET IN A SUBURB OF CHICAGO THAT MANAGES TO LOOK AND SOUND A GREAT DEAL LIKE THAT LOS ANGELES HUB OF POSTADOLESCENT HIGH LIFE MELROSE PLACE AND FOR GOOD REASON THE SAME CREATIVE TEAM AARON SPELLING AND E DUKE VINCENT IS RESPONSIBLE FOR BOTH FROM THE LOOKS OF THIS GLIBLY ENTERTAINING MISHMASH WITH ITS REGIMENTSIZE CAST OF STRIVERS WITH MESSY LIVES THE TEAM SEEMS NOT TO HAVE LOST ITS TOUCH ED BEGLEY JR IN FINE FORM AS WINNETKA'S LEAD LOSER ABANDONS A WIFE FOR A VILE MISTRESS THE OTHER CHARACTERS ARE OUT OF WORK MBA'S HERE HAVE TO WORK AS GARDENERS DIVORCED OR ABOUT TO BE OR JUST ABOUT HANGING ON GENERALLY BUT MAKE NO MISTAKE THIS IS FUN MELODRAMA A BRAND PERFECTED BY SPELLING AND CO IN WHICH MENACE ALWAYS LOOMS AND NOTHING ACTUALLY BAD EVER HAPPENS THIS CHAPTER OF BIOGRAPHY BEGINS WITH ONE OF AMERICA'S MOST FAMOUS CHORUS LINES THOSE JOLLY GASSTATION ATTENDANTS BELTING OUT WE ARE THE MEN OF TEXACO THEY WILL FOREVER BE ASSOCIATED WITH THE PROGRAM THAT BROUGHT TELEVISION INTO THE BIG TIME IN THE 1940S THE TEXACO STAR THEATRE BETTER KNOWN TO ROARING MILLIONS AS THE MILTON BERLE SHOW WHEN IT FIRST WENT ON THE AIR IN JUNE 1948 THERE WERE THIS SPLENDID BIOFILM RELATES ONLY SOME 500000 TELEVISION SETS IN THE ENTIRE COUNTRY BY THE TIME UNCLE MILTIE HAD BEEN ON THE AIR DAZZLING AUDIENCES FOR A FEW MONTHS THE NUMBER OF SETS REACHED A MILLION AND THERE WAS NO DOUBT ABOUT WHO HAD SOLD THEM AS THE FILM MAKES CLEAR BERLE WAS THE CHILD OF THE ULTIMATE STAGE MOTHER LONG AFTER HER SON HAD BECOME MR TELEVISION SHE SAT IN THE AUDIENCE NUDGING AND POKING THOSE NEAR HER IF THEY FAILED TO GUFFAW AT MILTON'S JOKES THE UPROARIOUS CLIPS HERE OF UNCLE MILTIE ZINGING STRAIGHT MEN AND OTHER GUESTS MAKE IT SEEM UNLIKELY MOTHER BERLE HAD TO USE HER ELBOWS VERY OFTEN CYNTHIA GIBB STARS IN THIS IMPROBABLE BUT FACTBASED MOVIE ABOUT A RAPE VICTIM WHO UNKNOWINGLY MARRIES THE MAN WHO PREVIOUSLY ATTACKED HER AND MADE HER PREGNANT INNOCENT BOOKISH AND THE DUTIFUL DAUGHTER OF A STRICTLY RELIGIOUS FAMILY BILLY DECIDES TO KEEP THE BABY JUST AS THE HANDSOME MALE STRANGER JIM RICHARD GRIECO WHO HAS MYSTERIOUSLY BEGUN HANGING AROUND URGES HER TO TAKE IT FROM THERE STILL FOR ALL ITS PREDICTABILITY THERE IS SOMETHING TO BE SAID FOR A FILM THAT CAN EKE SOME CREDIBILITY OUT OF THIS FRUITCAKE OF COINCIDENCE THE PERFORMANCES HELP IN PARTICULAR THOSE OF RALPH WAITE AS THE BIBLETHUMPING FATHER AND MS GIBB A RISING MADEFORTV HEROINE ITS TITLE HAS A PLEASANT INNOCENCE WHO AFTER ALL SAYS HECK ANYMORE BUT THIS MILDLY ENDEARING FILM BY DOUG BLOCK IS KNOWING ENOUGH ABOUT THE TROUBLES ASPIRING FILMMAKERS CONFRONT ONE YOUNGISH PICTUREMAKER FINALLY ENDS UP GOING HOME TO ILLINOIS IN ORDER TO FIND PEOPLE KIND ENOUGH AND TRUSTING ENOUGH TO INVEST THEIR HARDEARNED MONEY IN HIS FILM GOOD LUCK OTHERS ARE SHOWN COMING UP AGAINST THE HARD WORLD OF DISTRIBUTORS ACQUISITIONS PEOPLE INDUSTRY SHARKS AND JUST PLAIN SANE BUSINESS FOLK THE FILMMAKERS SUFFER LIKE HECK AND SOME OCCASIONALLY HAVE THE GRACE TO LAUGH BUT ONE HAS THE SENSE THEY'LL ENDURE IT DOES SEEM FROM SOME OF THE ARTISTS' CONVERSATIONS HERE THAT HARDNOSED HOLLYWOOD MAY BE RESPONSIBLE FOR SAVING THE WORLD FROM SOME TERRIBLE MOVIES 9403100139 940310 TECHNOLOGY GM ENERGY CONVERSION JOINING FORCES TO DEVELOP NEW ELECTRIC CAR BATTERY BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP AND TINY ENERGY CONVERSION DEVICES INC AGREED TO DEVELOP AN INNOVATIVE ELECTRIC CAR BATTERY WITH FORMER GM CHAIRMAN ROBERT C STEMPEL AS A KEY PLAYER GM CALLED THE AGREEMENT AN IMPORTANT STEP TOWARD DEVELOPING VIABLE ELECTRIC VEHICLES BUT IT INSISTED THAT ENERGY CONVERSION'S OVONIC BATTERY TECHNOLOGY DOESN'T YET REPRESENT A BREAKTHROUGH IN THE SEARCH FOR AN AFFORDABLE PRACTICAL ELECTRIC CAR GM REITERATED ITS OPPOSITION TO A 1998 DEADLINE CALIFORNIA REGULATORS HAVE SET FOR AUTO MAKERS TO FIELD MASSMARKET ELECTRIC VEHICLES IN CALIFORNIA WITHOUT OFFERING SPECIFICS GM SAID IT WILL JOINTLY PURSUE COMMERCIALIZATION OF THE OVONIC NICKEL METALHYDRIDE BATTERY DEVELOPED BY ENERGY CONVERSION A TROY MICH TECHNOLOGY COMPANY ENERGY CONVERSION HAS CLAIMED ITS BATTERY CAN BE RECHARGED IN 15 MINUTES COMPARED WITH ABOUT EIGHT HOURS FOR CONVENTIONAL LEADACID BATTERIES THE COMPANY HAS PRODUCED SMALL BATTERIES BASED ON ITS NICKEL METALHYDRIDE TECHNOLOGY FOR USE IN COMPUTERS AND OTHER SMALL ELECTRONIC DEVICES SINCE 1987 IF THE OVONIC TECHNOLOGY WORKED AS CLAIMED IN A CAR AND COULD BE MANUFACTURED AT COMPETITIVE COSTS IT WOULD REPRESENT A BREAKTHROUGH IN THE SEARCH FOR A BATTERY THAT RIVALS THE EFFICIENCY AND LOW COST OF GASOLINEPOWERED INTERNAL COMBUSTION ENGINES MR STEMPEL WHO SAID IN JANUARY HE WANTS TO CREATE A COMPANY TO BUILD ELECTRIC CARS WILL ACT AS A SENIOR TECHNICAL ADVISER GM AND ENERGY CONVERSION CHAIRMAN STANFORD OVSHINSKY SAID YESTERDAY MR STEMPEL WAS OUSTED AS GM'S CHAIRMAN IN NOVEMBER 1992 AND HAD JOINED ENERGY CONVERSION'S BOARD IN JANUARY ACCORDING TO SECURITIES AND EXCHANGE COMMISSION RECORDS HE PURCHASED 5000 SHARES OF ENERGY CONVERSION STOCK IN FEBRUARY AT 9 A SHARE ENERGY CONVERSION SHARES CLOSED YESTERDAY AT 950 IN OVERTHECOUNTER TRADING UP FROM 875 TUESDAY AND 775 MONDAY MR STEMPEL PLAYED A KEY ROLE IN TALKS BETWEEN GM AND ENERGY CONVERSION AS THE VENTURE TOOK SHAPE ACCORDING TO KENNETH R BAKER GM VICE PRESIDENT FOR RESEARCH AND DEVELOPMENT MR BAKER WAS HEAD OF GM'S ELECTRIC VEHICLE PROGRAM WHEN MR STEMPEL WAS GM'S CHIEF EXECUTIVE ONCE IT BECAME CLEAR THE GM DEAL WOULD GO THROUGH MR STEMPEL RESIGNED HIS ENERGY CONVERSION DIRECTORSHIP MR OVSHINSKY SAID YESTERDAY MR OVSHINSKY WOULDN'T SAY HOW MUCH HIS COMPANY OR GM PLANS TO SPEND ON FURTHER DEVELOPMENT OF THE OVONIC NICKEL METALHYDRIDE BATTERY BUT SAID THERE WILL BE A SERIES OF ANNOUNCEMENTS 9403100138 940301 REVIEW & OUTLOOK EDITORIAL PRESUMPTION OF RASCALITY THERE IS STILL A PRESUMPTION OF INNOCENCE IN THIS COUNTRY PRESIDENT CLINTON SAID IN DEFENDING HIS CAMPAIGN JAUNT FOR CRIMINAL INVESTIGATION TARGET DANNY ROSTENKOWSKI THE PRESUMPTION OF INNOCENCE CERTAINLY DOES PERTAIN TO CRIMINAL TRIALS WHEN SOMEONE MIGHT GO TO JAIL BUT YESTERDAY THE PRESIDENT WAS STUMPING FOR REP ROSTENKOWSKI IN AN ELECTION THE ISSUE IN THE MARCH 15 CHICAGO PRIMARY IS WHETHER THE WAYS AND MEANS CHAIRMAN IS FIT TO BE AMONG THE DOZEN OR SO MOST POWERFUL MEN IN OUR GOVERNMENT VOTERS ARE ENTITLED TO USE WHATEVER STANDARD THEY WANT PRESUMED INNOCENCE CAESAR'S WIFE OR SOMETHING IN BETWEEN IN DECIDING WHETHER TO THROW THE RASCALS OUT THIS CONFUSION OF THE CRIMINAL PROCESS AND THE POLITICAL PROCESS HAS BECOME A BANE OF NATIONAL LIFE IN PART BECAUSE CONGRESSIONAL DEMOCRATS UNABLE TO BEAT THE REAGANITES AT THE POLLS UNDERTOOK TO CRIMINALIZE POLICY DIFFERENCES THROUGH LAWRENCE WALSH AND OTHER SPECIAL PROSECUTORS BUT PERHAPS IN LARGER PART BECAUSE OUR CONGRESSPERSONS HAVE SO MANAGED TO ENTRENCH THEMSELVES THAT THE ONLY WAY TO TURN THEM FROM OFFICE IS TO SEND THEM TO JAIL BY NOW THE RASCALS HAVE EVEN LEARNED TO PROTECT THEMSELVES FROM THE JUDGMENT OF THE VOTERS BY INVOKING THE CRIMINAL LAW THE NOTION IS UNLESS MY SKULLDUGGERY IS SERIOUS ENOUGH TO RATE A JAIL SENTENCE AND PROVABLE BEYOND A REASONABLE DOUBT VOTERS AREN'T ENTITLED TO HOLD IT AGAINST ME AT THE VOTING BOOTH INDEED IF I'M CLEVER AND LUCKY ENOUGH TO GET EVERYTHING SUBPOENAED LOCKED UP IN SOME PROSECUTOR'S FILE CASE AND SUBJECT TO INVESTIGATIONS THAT REACH BEYOND THE NEXT ELECTION VOTERS AREN'T EVEN ENTITLED TO KNOW THE FACTS REP ROSTENKOWSKI IS A CERTIFIED PIONEER OF THIS PLOY THE HOUSE POST OFFICE SCANDAL ERUPTED IN JANUARY 1992 AND IT WAS APPARENT FROM THE FIRST THAT THE WAYS AND MEANS CHAIRMAN WAS A SUSPECT LAST YEAR POSTMASTER ROBERT ROTA PLEADED GUILTY TO CONSPIRING WITH SEVERAL MEMBERS TO EMBEZZLE MONEY FROM THE GOVERNMENT AND COURT DOCUMENTS SEEM TO IMPLICATE REP ROSTENKOWSKI THE PROSECUTOR INVESTIGATING HIM JAY STEVENS WAS SWEPT WAY WHEN HUBBELL & RENO FIRED ALL US ATTORNEYS WITH THE SWITCH THE GRAND JURY CONDUCTING THIS INVESTIGATION WAS ALLOWED TO EXPIRE BUT HIS SUCCESSOR ERIC HOLDER HAS BY NOW CONVENED ANOTHER GRAND JURY WHERE ONE OF MR ROSTENKOWSKI'S EMPLOYEES RECENTLY TOOK THE FIFTH AMENDMENT REP ERNEST ISTOOK A FRESHMAN REPUBLICAN THINKS IT INEXCUSABLE THE HOUSE HASN'T CONDUCTED ITS OWN PROBE INTO WHO TOOK WHAT FROM THE POST OFFICE TILL LAST MONTH HE AND 54 COSPONSORS DEMANDED AN INVESTIGATION HOURS BEFORE A SCHEDULED VOTE HOUSE LEADERS PRODUCED A LETTER FROM MR HOLDER SAYING THAT A HOUSE INVESTIGATION TO INFORM THE VOTERS COULD SIGNIFICANTLY DAMAGE HIS PROBE IN OTHER WORDS UNTIL WE CAN DETERMINE IF DANNY IS A THOROUGHGOING CROOK VOTERS BEING ASKED TO PERPETUATE HIS EXTRAORDINARY POWERS SHOULD BE KEPT IN THE DARK ABOUT HIS USE OF THOSE POWERS IN THE CLINTON ADMINISTRATION THIS SEEMS TO HAVE BECOME THE PREVAILING STANDARD COMMERCE SECRETARY RON BROWN WAS CLEARED WHEN A GRAND JURY DECIDED THERE WASN'T ENOUGH EVIDENCE TO INDICT HIM FOR TAKING A BRIBE FROM A VIETNAMESE BUSINESSMAN BUT WHY WAS MR BROWN HANGING AROUND WITH THE SUSPECT BUSINESSMAN IN THE FIRST PLACE AND WHY DID HE LIE ABOUT IT LACKING AN INDICTMENT THE CRIMINAL LAW DOES NOT AND SHOULD NOT ANSWER THESE QUESTIONS BUT SOMEHOW OR ANOTHER VOTERS ARE ENTITLED TO AN EXPLANATION MOST SPECTACULARLY OF ALL OF COURSE THE PRESIDENT HIMSELF HAS ROSTYPLOYED HIS WHITEWATER VULNERABILITY INTO THE ABYSS OF THE ROBERT FISKE INVESTIGATION YESTERDAY WE RECEIVED JUSTICE'S ANSWER TO OUR FREEDOM OF INFORMATION REQUEST FOR A COPY OF THE PARK SERVICE'S REPORT ON THE DEATH OF VINCENT FOSTER WE CAN'T HAVE IT BECAUSE INDEPENDENT COUNSEL FISKE HAS DETERMINED THAT THE PUBLIC RELEASE OF ALL OR ANY PART OF THE RECORDS AT THIS TIME WOULD BE DETRIMENTAL TO HIS INVESTIGATION BUT VOTERS ARE ENTITLED TO KNOW RIGHT NOW WHAT KIND OF CORRUPTION IT IS THAT SEEMS TO BE METASTASIZING THROUGH THE JUSTICE DEPARTMENT THE LITTLE ROCK US ATTORNEY'S OFFICE THE FDIC THE TREASURY AND RESOLUTION TRUST CORP WHERE ONE AFTER ANOTHER WEBSTER HUBBELL PAULA CASEY RICKI TIGERT AND ROGER ALTMAN HAVE GRUDGINGLY AND BELATEDLY RECUSED THEMSELVES FROM IMPORTANT PUBLIC BUSINESS WHILE WE'RE GLAD TO SEE MR FISKE STARTING TO SHOW SOME LIFE HE HAS NO MANDATE TO ANSWER THIS QUESTION THE BODY DIRECTLY RESPONSIBLE TO THE VOTERS IS OF COURSE THE CONGRESS WHICH SHOULD HAVE THE RESPONSIBILITY FOR MAKING A RECORD THE ELECTORATE CAN JUDGE BUT CONGRESS HAS NEVER MET A RESPONSIBILITY IT CAN'T DUCK AND A DEMOCRATIC MAJORITY IS NOT ABOUT TO INVESTIGATE A DEMOCRATIC PRESIDENCY INSTEAD WE ARE TREATED TO THE HILARIOUS SPECTACLE OF DON RIEGLE OF THE KEATING FIVE AND JOHN KERRY BUDDY OF CENTRUST CROOK DAVID PAUL PIOUSLY EXPLAINING THEY DO NOT WANT TO IMPEDE MR FISKE AS FOR CONGRESS POLICING ITS OWN POST OFFICE OR DANNY ROSTENKOWSKI OR EVEN LESSER CONGRESSPERSONS FORGET IT CONGRESS ROUTINELY AND EXPLICITLY EXEMPTS ITSELF FROM LAWS IT APPLIES TO THE REST OF US AND ITS INTERNAL ETHIC INVESTIGATIONS ARE NEITHER ETHICAL NOR INVESTIGATIONS THE HOUSE WILL LIKELY VOTE THIS WEDNESDAY NOT TO INVESTIGATE THE POST OFFICE SCANDAL JUST AS IT VOTED LAST MONTH TO EXEMPT ITSELF FROM THE SPECIAL PROSECUTOR IT WAS APPLYING TO THE EXECUTIVE BRANCH SEE BELOW WE'RE NOT KEEN ON SENDING MEMBERS OF CONGRESS TO JAIL BUT SO LONG AS CONGRESS PUTS ITSELF ABOVE LAWS THAT APPLY TO CITIZENS AND EVEN PRESIDENTS THE PRESUMPTION VOTERS OUGHT TO APPLY IN THE VOTING BOOTH IS A PRESUMPTION OF RASCALITY SEE RELATED LETTER LETTERS TO THE EDITOR IT'S UNFAIR TO PRESUME GUILT BY ASSOCIATION WSJ MARCH 10 1994 9403010078 YY94 MM03 9403100137 940310 3NET SYSTEMS CANCELS SPLIT RANCHO CORDOVA CALIF 3NET SYSTEMS INC A MEDICAL SOFTWARE CONCERN SAID IT CANCELED ITS 1FOR2 REVERSE COMMONSTOCK SPLIT 9403100136 940310 HARLEYSVILLE 1STQUARTER FORECAST HARLEYSVILLE PA HARLEYSVILLE GROUP INC SAID IT EXPECTS LOSSES FROM RECENT WINTER STORMS TO REDUCE FIRSTQUARTER RESULTS BY ABOUT 75 MILLION OR 58 CENTS A SHARE AFTER TAXES THE REGIONAL INSURANCEHOLDING COMPANY HAD NET INCOME OF 45 MILLION OR 35 CENTS A SHARE IN THE YEARAGO FIRST QUARTER MOST OF THE LOSSES RELATE TO PROPERTY DAMAGE COVERED BY HOMEOWNERS' POLICIES AND OCCURRED IN NEW ENGLAND AND THE MIDATLANTIC STATES SHARES OF HARLEYSVILLE ROSE 375 CENTS TO CLOSE AT 24125 A SHARE IN TRADING ON THE NASDAQ STOCK MARKET 9403100135 940310 AMERICAN FINANCIAL DEBT OFFER CINCINNATI AMERICAN FINANCIAL CORP SAID IT INCREASED THE INTEREST RATE OF THE DEBENTURES BEING OFFERED IN THE EXCHANGE OFFER FOR ITS DEBENTURES OUTSTANDING THE RATE IS BEING INCREASED TO 975 FROM 95 THE CASH PREMIUM ACCRUED INTEREST AND OTHER TERMS OF THE EXCHANGE OFFER REMAIN UNCHANGED ADDITIONALLY THE COMPANY CALLED FOR REDEMPTION OF ALL 735 MILLION PRINCIPAL AMOUNT OF ITS 135 DEBENTURES AND 135 SERIES A DEBENTURES DUE 2004 THE REDEMPTION PRICE IS 100 OF PRINCIPAL AMOUNT 9403100134 940310 OUR MOTHERINLAW WOULD PICK THE OFFICE WITH A RIVER VIEW TOO BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO BETTING MILLIONS OF DOLLARS ON EXCHANGERATE FLUCTUATIONS CURRENCY TRADERS ANDREW KREIGER AND JONATHAN BERG OF KB CURRENCY INC DEFER TO NO ONE BUT FACED WITH SELECTING NEW OFFICE SPACE IN NORTHERN NEW JERSEY THEY BROUGHT IN A 93YEAROLD CHINESE PROFESSOR IN A FLOWING BLUE ROBE IN HONG KONG RESIDENTS FREQUENTLY USE SUCH FENG SHUI MASTERS TO CHOOSE OFFICES AND APARTMENTS LITERALLY WIND AND WATER FENG SHUI IS THE ANCIENT STUDY OF THE PROPER ALIGNMENT OF OBJECTS WITH NATURAL GEOGRAPHIC FEATURES TO INSURE GOOD FORTUNE AND HARMONY THE PRACTICE IS RELATIVELY UNKNOWN ON THE EAST COAST THOUGH I THOUGHT HE WAS KIDDING SAYS BROKER STEVEN GELTZEILER OF BENDER & CO WHO SQUIRED MR BERG AND THE FENG SHUI MASTER AROUND A FORT LEE NJ BUILDING OWNED BY METROPOLITAN LIFE INSURANCE CO ONCE I FOUND OUT THEY WERE DEAD SERIOUS WELL YOU DON'T WANT TO STEP ON ANYONE'S BELIEFS MR BERG SAYS HE LEARNED OF THE PRACTICE AFTER COMPLIMENTING A CHINESE CLIENT ABOUT THE GOOD FEEL OF HIS MANHATTAN OFFICE WHEN KB CURRENCY NARROWED ITS SEARCH FOR NEW SPACE MR BERG RETAINED MASON CHEN HIS CLIENT'S SAGE TO HAVE A LOOK HE WALKED INTO ONE BUILDING AND IT WAS ALL WE COULD DO TO MAKE HIM GO UP AND LOOK AT THE SPACE BECAUSE HE HAD A VERY BAD FEELING ABOUT IT RECALLS MR BERG WHEN MR CHEN GOT TO THE MET LIFE BUILDING THE VIBES IMPROVED HE SAT IN THE MIDDLE OF AN OFFICE THERE CONSULTED A BOARD WITH NUMBERS AND CHINESE CHARACTERS SPUN SOMETHING AND DID SOME CALCULATIONS MR BERG ADMITS THAT HE DIDN'T UNDERSTAND EXACTLY WHAT MR CHEN WAS DOING IT DID HOWEVER INVOLVE KNOWING WHAT DIRECTION THE BUILDING FACED THE BIRTHDAYS OF THE TWO TRADERS AND THE LOCATION OF THE ELEVATORS AND ENTRANCES FACING A PARKING LOT IS BAD FACING THE HUDSON RIVER WATER SYMBOLIZES PROSPERITY IS GOOD HIS BOTTOM LINE RENT THE MET LIFE SPACE THE UNORTHODOXY OF IT ISN'T LOST ON MR BERG I DON'T WANT PEOPLE TO THINK WE'RE IN ANY WAY FREAKY HE SAYS WE DON'T USE FENG SHUI TO MAKE BUSINESS DECISIONS I JUST FELT IF WE COULD GET OUR BUILDING PROPERLY SITUATED WE MIGHT AS WELL HARNESS EVERY BIT OF ENERGY WE CAN GET 9403100133 940310 CONDE NAST'S FLORIO NAMES FUCHS KLIGER SENIOR VICE PRESIDENTS NEW YORK THE CHANGING OF THE GENERATIONAL GUARD CONTINUED AT CONDE NAST AS INCOMING PRESIDENT STEVEN T FLORIO PROMOTED THE HIGHLY SUCCESSFUL PUBLISHERS OF VOGUE AND GLAMOUR TO NEW POSTS AS SENIOR VICE PRESIDENTS ANNE SUTHERLAND FUCHS 45 YEARS OLD PUBLISHER OF VOGUE SINCE 1990 WAS NAMED SENIOR VICE PRESIDENT INTERNATIONAL WORKING WITH FOREIGN ADVERTISERS JACK KLIGER 47 GLAMOUR'S PUBLISHER SINCE 1988 WILL BE SENIOR VICE PRESIDENT DIRECTOR OF CORPORATE ADVERTISING AT THE SAME TIME MR FLORIO ANNOUNCED THAT RONALD A GALOTTI A VETERAN CONDE NAST EXECUTIVE IS RETURNING TO CONDE NAST TO BECOME PUBLISHER OF VOGUE CONSIDERED THE COMPANY'S FLAGSHIP AS REPORTED MR GALOTTI QUIT HEARST CORP'S ESQUIRE AND ESQUIRE GENTLEMAN AFTER SIX WEEKS AS PUBLISHING DIRECTOR CONDE NAST THE MAGAZINE UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC HASN'T HAD ANYBODY AT THE SENIOR VICE PRESIDENT LEVEL MR KLIGER WILL ASSUME SOME OF THE DUTIES OF NEIL JACOBS VICE PRESIDENT CORPORATE ADVERTISING SERVICES WHO IS RETIRING THE LEVEL DIRECTLY UNDER PRESIDENT AT CONDE NAST HAS BEEN EXECUTIVE VICE PRESIDENT BUT TWO OF THE THREE PEOPLE AT THAT LEVEL ARE IN THEIR 60S AND PLAN TO RETIRE IN SEVERAL YEARS SAID MR FLORIO THESE ARE THE FOLKS MS FUCHS AND MR KLIGER WHO ARE BEING GROOMED TO HELP ME RUN THE COMPANY FOR THE NEXT 20 YEARS SAID MR FLORIO 44 THIS IS A CONTINUATION OF THE GENERATIONAL CHANGE THAT STARTED WITH ME IN JANUARY MR FLORIO WAS NAMED TO SUCCEED 68YEAROLD BERNARD LESER AS OF APRIL 4 MR GALOTTI IS VIEWED AS AN ACE SALESMAN AND AGGRESSIVE PUBLISHER BUT CONDE NAST INSIDERS SAY HE RUBBED MR LESER THE WRONG WAY MR FLORIO SAID HE WANTED MR GALOTTI BACK AND CLEARED HIS RETURN WITH CONDE NAST CHAIRMAN SI NEWHOUSE JR WE DON'T HAVE TO REHASH THAT RON HAD SOME PROBLEMS BUT HE'S PAST THEM SAID MR FLORIO I'M HIRING THE RON GALOTTI WHO BROUGHT MADEMOISELLE TO A NEW HIGH IN AD PAGES AND WHO WAS THE FOUNDING PUBLISHER FOR THE IMMENSELY SUCCESSFUL CONDE NAST TRAVELLER 9403100132 940310 RYAN BECK STOCK SWAP WEST ORANGE NJ RYAN BECK & CO SAID IT WILL OFFER TO EXCHANGE AS MANY AS 1250000 SHARES OF NEWLY CREATED VOTING CUMULATIVE CONVERTIBLE PREFERRED STOCK SERIES A FOR THE SAME AMOUNT OF COMMON SHARES OUTSTANDING THE COMPANY SAID IT WILL ALSO OFFER TO PURCHASE AS MANY AS 150000 OF ITS COMMON SHARES FOR BETWEEN 625 A SHARE AND 725 A SHARE THE OFFERS ARE EXPECTED TO BEGIN TOMORROW SHARES OF RYAN BECK A BROKERAGE AND UNDERWRITING FIRM ROSE 50 CENTS OR 75 TO CLOSE AT 7125 IN NASDAQ STOCK MARKET TRADING 9403100131 940310 AMSOUTH TAMPA BANKING PACT BIRMINGHAM ALA AMSOUTH BANCORP SAID IT AGREED TO ACQUIRE TAMPA BANKING CO IN A TRANSACTION VALUED AT ABOUT 323 MILLION UNDER TERMS OF THE AGREEMENT AMSOUTH WILL EXCHANGE 15592 SHARES OF AMSOUTH COMMON STOCK FOR EACH OF THE 677000 SHARES OF CLOSELY HELD TAMPA BANKING THE ACQUISITION WHICH IS SCHEDULED FOR COMPLETION BY YEAR END IS THE LATEST IN A STRING OF FLORIDA ACQUISITIONS BY THE ALABAMA BANKING CONCERN AT THE END OF 1993 AMSOUTH HAD 64 OFFICES IN FLORIDA 9403100130 940310 BUSINESS BRIEF TYSON FOODS INC OFFER TOTALING 330 MILLION IS LAUNCHED FOR WLR FOODS TYSON FOODS INC SPRINGDALE ARK LAUNCHED ITS PREVIOUSLY ANNOUNCED HOSTILE TENDER OFFER TO ACQUIRE WLR FOODS INC FOR 30 A SHARE VALUING THE CHICKEN TURKEY PROCESSOR AT 330 MILLION WLR BASED IN HINTON VA HAS REBUFFED RECENT OVERTURES FROM TYSON THE NATION'S LARGEST POULTRY PROCESSOR THE TENDER OFFER EXPIRES APRIL 8 IN NASDAQ STOCK MARKET TRADING WLR CLOSED AT 30875 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TYSON WAS UNCHANGED AT 2050 9403100129 940310 WHO'S NEWS FINANCIAL OFFICER QUITS JENNY CRAIG AFTER BRIEF TENURE BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL WILLIAM R LEWIS JENNY CRAIG INC'S CHIEF FINANCIAL OFFICER BECAME THE SECOND EXECUTIVE THIS MONTH TO RESIGN AFTER A SHORT TENURE AT THE OPERATOR OF WEIGHTLOSS CENTERS MR LEWIS 52 YEARS OLD HAD HELD THE POSITION FOR ABOUT A MONTH HE LEFT PEOPLE FAMILIAR WITH THE SITUATION SAID BECAUSE HIS BUSINESS ASSOCIATE ALBERT J DIMARCO QUIT LAST WEEK AS THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER MR DIMARCO 50 LEFT AFTER THREE MONTHS ON THE JOB CITING PERSONAL REASONS MR LEWIS HAD WORKED FOR HIM AT HORSHAM PABASED NUTRI/SYSTEM INC MR LEWIS COULD NOT BE REACHED FOR COMMENT MR DIMARCO SUCCEEDED RONALD E GEREVAS 54 IN LATE NOVEMBER 1993 THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER REMAINS SID CRAIG 61 WHO FOUNDED THE COMPANY IN 1983 WITH HIS WIFE JENNY CRAIG WHO SERVES AS VICE CHAIRMAN JENNY CRAIG INC SAID IN A STATEMENT THAT W JAMES MALLEN 50 WOULD POSTPONE HIS PREVIOUSLY ANNOUNCED RETIREMENT TO SERVE AS CHIEF FINANCIAL OFFICER UNTIL A SUCCESSOR FOR MR LEWIS IS FOUND MR MALLEN HAD HELD THAT POST FROM THE COMPANY'S FOUNDING UNTIL MR LEWIS'S APPOINTMENT THIS YEAR THE STRING OF HIGHLEVEL MANAGEMENT DEPARTURES HAS ADDED TO THE WOES OF JENNY CRAIG WHICH LIKE OTHER WEIGHTLOSS CENTER OPERATORS HAS BEEN BESET BY GOVERNMENT INVESTIGATIONS BAD PUBLICITY ABOUT DIETING TECHNIQUES AND A SHRINKING MARKET EARLY LAST YEAR THE FEDERAL TRADE COMMISSION LAUNCHED AN INVESTIGATION OF 11 DIETINDUSTRY FIRMS INCLUDING JENNY CRAIG ALLEGING FALSE AND DECEPTIVE ADVERTISING ALTHOUGH SEVERAL MAJOR FIRMS AGREED TO SETTLE THE CASE AND OFFER CORRECTIVE PUBLICITY JENNY CRAIG REFUSED MAINTAINING THAT THE COMPANY'S ADS HAD ALWAYS BEEN FORTHRIGHT PRESS REPORTS AND LAWSUITS COMPLAINING OF YOYO DIETS HAVE PLAGUED THE 187 BILLION INDUSTRY YEARS OF GROWTH RATES OF 10 OR MORE PEAKED AROUND 1989 AND ARE NOW HEADED DOWNWARD INDUSTRY ANALYSTS SAY FIRMS HAVE BEEN FORCED TO REPOSITION THEMSELVES TO EMPHASIZE WEIGHT MANAGEMENT OR KEEPING WEIGHT OFF AFTER IT IS LOST THESE PROBLEMS ARE ENDEMIC TO THE INDUSTRY AND JENNY CRAIG IS DOING BETTER THAN THE INDUSTRY AS A WHOLE SAID TODD BERKO OF KIDDER PEABODY & CO HE BLAMED JENNY CRAIG'S PROBLEMS ON A COMBINATION OF FACTORS INCLUDING LOWER SALES ON A PERCENTER BASIS WHAT'S GOING ON WITH THIS STOCK IS NOT ROCKET SCIENCE MR BERKO SAID JENNY CRAIG'S STOCK IS TRADING NEAR ITS 52WEEK LOW OF 625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE SHARES CLOSED YESTERDAY AT 6375 UNCHANGED 9403100128 940310 MANY DON'T REALIZE IT'S CLINTON PLAN THEY LIKE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL YORK PA JAHAN BASHIR DOESN'T LIKE PRESIDENT CLINTON'S HEALTHCARE PLAN SHE THINKS IT'S TOO CONFUSING TOO COMPLEX AND PROBABLY TOO EXPENSIVE WHAT ABOUT A PLAN THAT WOULD GUARANTEE A STANDARD PRIVATE HEALTH BENEFITS PACKAGE TO ALL AMERICANS TRY TO PROMOTE COMPETITION IN THE MEDICAL INDUSTRY INCLUDE SOME GOVERNMENT REGULATION TO KEEP PRICES UNDER CONTROL AND REQUIRE ALL EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS WITH THE PROMISE OF GOVERNMENT SUBSIDIES TO HELP THE SMALLEST COMPANIES IT SOUNDS GOOD SAYS MRS BASHIR A 43YEAROLD SECRETARY AND MOTHER OF SEVEN EMPLOYERS MAY PICK UP A LOT OF THE BURDEN BUT IF THE EMPLOYER CAN'T AFFORD IT THE GOVERNMENT WILL SUBSIDIZE SO YOU'RE GOING TO HAVE THE EMPLOYER THE GOVERNMENT AND THE INSURANCE COMPANIES WORKING TOGETHER ACTUALLY THAT PLAN IS THE CLINTON PLAN MR CLINTON IS LOSING THE BATTLE TO DEFINE HIS OWN HEALTHCARE BILL IN THE CACOPHONY OF NEGATIVE TELEVISION ADS AND SNIPING BY CRITICS FOES ARE RAISING DOUBTS ABOUT THE CLINTON PLAN FASTER THAN THE PRESIDENT AND HILLARY RODHAM CLINTON CAN EXPLAIN IT UNLESS THE CLINTONS CAN CUT THROUGH THE CONFUSION THE OUTLOOK FOR PASSAGE OF MAJOR ELEMENTS OF THEIR BILL IS IN DOUBT A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT PUBLIC SUPPORT FOR THE CLINTON HEALTH PLAN IS ERODING YET THE SAME POLL CONDUCTED BY REPUBLICAN ROBERT TEETER AND DEMOCRAT PETER HART SHOWS THAT BACKING FOR THE BASIC PROVISIONS IN THE PRESIDENT'S PLAN IS STRONG IN THE POLL 45 OF AMERICANS NOW SAY THEY OPPOSE THE CLINTON PLAN UP FROM 39 IN JANUARY AND 18 IN SEPTEMBER JUST AFTER THE PRESIDENT OUTLINED THE PLAN IN A TELEVISED ADDRESS TO CONGRESS THIRTYSEVEN PERCENT OF THOSE SURVEYED FAVOR THE CLINTON PROGRAM DOWN FROM 42 IN JANUARY AND 51 IN SEPTEMBER BUT WHEN READ A DESCRIPTION OF THE MAJOR PROVISIONS OF THE WHITE HOUSE BILL WITHOUT IDENTIFYING IT 76 OF THE RESPONDENTS SAY IT HAS EITHER A GREAT DEAL OF APPEAL OR SOME APPEAL THAT IS FAR BETTER THAN THE RESPONSE TO DESCRIPTIONS OF FOUR OTHER CONGRESSIONAL PROPOSALS A DESCRIPTION OF A PLAN BY RHODE ISLAND SEN JOHN CHAFEE AND OTHER MODERATE REPUBLICANS WHICH WOULD REQUIRE ALL INDIVIDUALS TO OBTAIN HEALTH COVERAGE AND PROVIDE FINANCIAL ASSISTANCE TO LOWINCOME PEOPLE APPEALS TO 48 OF THOSE SURVEYED A PLAN BY DEMOCRATIC REP JIM COOPER OF TENNESSEE THAT HAS BIPARTISAN BACKING AND WOULD REQUIRE EMPLOYERS TO OFFER BUT NOT PAY FOR COVERAGE FOR THEIR WORKERS AND SEEK TO CONTROL PRICES THROUGH MARKET COMPETITION GETS A 34 APPROVAL RATING A PLAN BY CONSERVATIVE GOP SEN PHIL GRAMM OF TEXAS THAT WOULD ALLOW PEOPLE TO SET UP TAXFREE SAVINGS ACCOUNTS FOR MEDICAL EXPENSES GETS 42 APPROVAL AND A GOVERNMENTRUN TAXPAYERFUNDED SYSTEM PUSHED BY REP JIM MCDERMOTT OF WASHINGTON AND SOME OTHER LIBERAL DEMOCRATS APPEALS TO 31 FORTY PERCENT OF THOSE SURVEYED SAY REQUIRING EMPLOYERS TO PAY FOR THEIR WORKERS' HEALTH COVERAGE A CORNERSTONE OF THE CLINTON PLAN IS THE BEST WAY TO ACHIEVE UNIVERSAL HEALTH COVERAGE THIS COMPARES WITH 22 WHO FAVOR REQUIRING INDIVIDUALS TO PURCHASE THEIR OWN COVERAGE AND 18 WHO BACK HAVING THE GOVERNMENT COLLECT MONEY THROUGH TAXES AND USE IT TO PAY MEDICAL BILLS MOREOVER BY 58 TO 34 AMERICANS SAY THE GOVERNMENT SHOULD SET CONTROLS ON HEALTH PRICES THE CLINTON PLAN WOULD PLACE CAPS ON THE ANNUAL INCREASE IN PRIVATE HEALTH INSURANCE PREMIUMS PLANS BEING PUSHED BY REPUBLICANS AND SOME OTHER DEMOCRATS WOULDN'T SURPRISINGLY DESPITE THE PUSH FOR FAST ACTION ON HEALTHCARE OVERHAUL AMERICANS BY 60 TO 35 SAY IT WOULD BE ACCEPTABLE IF CONGRESS DIDN'T PASS A PLAN THIS YEAR THE WHITE HOUSE SHOULD FIND THIS BOTH SATISFYING AND SOBERING SAYS MR HART SATISFYING BECAUSE THE BASIC IDEAS WHICH THEY'VE DRAWN UP ARE THE RIGHT IDEAS IN THE VIEW OF MANY PEOPLE HE SAYS BUT SOBERING BECAUSE THEY CLEARLY HAVE COMMUNICATED VERY LITTLE TO THE PUBLIC AND IN THAT RESPECT HAVE CEDED TOO MUCH TO THE INTEREST GROUPS TO FURTHER TEST PUBLIC SENTIMENT IN THE HEALTHCARE DEBATE THE WALL STREET JOURNAL ASKED MR HART TO CONVENE A SMALL GROUP OF PEOPLE IN YORK A MEDIUMSIZED CITY IN THE SOUTHERN PART OF PENNSYLVANIA EVERYONE IN THE GROUP INCLUDING A WOMAN WHOSE FAMILY LOST ITS HEALTH COVERAGE WHEN HER HUSBAND LOST HIS JOB AND A UNION MEMBER WITH A PLAN THAT COVERS EVERYTHING YOU CAN IMAGINE BELIEVES THE US HEALTH SYSTEM IS BADLY BROKEN AND NEEDS TO BE OVERHAULED TO GUARANTEE HEALTH COVERAGE FOR EVERYONE BUT NO ONE EXPRESSES SUPPORT FOR MR CLINTON'S SWEEPING PROPOSAL IN FACT NO ONE CAN EXPLAIN IT I THINK NOBODY IN THIS ROOM REALIZES WHERE CLINTON'S COMING FROM WITH HIS PLAN AND IT DOESN'T SPEAK CLEARLY COMPLAINS KEITH BEATTY WHO RUNS A LOCAL YOUTHCARE PROGRAM YET WHEN THE GROUP IS READ A DESCRIPTION OF THE CLINTON BILL WITHOUT IDENTIFYING IT AS THE PRESIDENT'S PLAN AND OF THE FOUR OTHER LEADING PROPOSALS IN CONGRESS THE CLINTON PLAN IS THE FIRST CHOICE OF EVERYONE IN THE ROOM REFERRING TO THE UNIDENTIFIED CLINTON PROPOSAL MR BEATTY DECLARES WITH THE PLAN YOU JUST PRESENTED IT SPEAKS CLEARLY MOST MEMBERS OF THE GROUP SAY THEY GET THEIR INFORMATION ABOUT HEALTH CARE FROM TELEVISION AND NEWSPAPERS TO MANY THE MOST MEMORABLE SOURCE HAS BEEN HEALTHINSURANCEINDUSTRY COMMERCIALS STRONGLY CRITICIZING ELEMENTS OF THE CLINTON PLAN INCLUDING THE FAMOUS HARRY AND LOUISE ADS THAT DEPICT AN ORDINARY COUPLE WORRYING ABOUT THE WHITE HOUSE BILL YET THE PENNSYLVANIANS INSIST THEY DON'T PLACE MUCH STOCK IN SUCH MESSAGES ROBIN DOLL A 44YEAROLD FINANCIAL SPECIALIST FOR YORK COUNTY WHO HAS A BLUE CROSS/BLUE SHIELD HEALTH PLAN PAID FOR BY HER EMPLOYER SAYS SHE SEES CRITICAL ADVERTISEMENTS FROM THE HEALTHINSURANCE INDUSTRY CONSTANTLY BUT SHE DECLARES THEY'RE IN IT TO MAKE BILLIONS SO WHO'S GOING TO BELIEVE THEM NEVERTHELESS THE PEOPLE IN THIS GROUP SEEM TO BE TAKING AWAY THE ADS' MESSAGE AND ARE WAITING FOR MR CLINTON TO RESPOND MORE CLEARLY ABOUT HIS PLAN I'D LIKE TO KNOW EXACTLY HOW IT'S GOING TO WORK SAYS DEBBIE RUDISILL A STATIONERYSTORE SALESWOMAN WITH NO HEALTH COVERAGE ONE DAY HE SAYS THIS ONE DAY HE SAYS THAT MR HART SAYS THE ADMINISTRATION COULD LEARN A VALUABLE LESSON FROM SUCH COMMENTS IF THE WHITE HOUSE HAD HAD ACCESS TO THESE PEOPLE IN YORK WHAT IT WOULD RECOGNIZE IS THEY HAVE TO BE ABLE TO SIMPLIFY THEIR MESSAGE TO SAY THIS IS WHAT WE'RE DOING A B AND C HE SAYS THEY HAVE TO BE ABLE TO GET OUT THERE AND TALK ABOUT IT DAY IN AND DAY OUT EVERYONE IN THE YORK GROUP ALSO AGREES THAT HEALTHCARE REFORM MEANS COVERAGE FOR EVERY AMERICAN NO ONE IN THE ROOM IS WILLING TO ACCEPT A COMPROMISE OF ANYTHING LESS WE'VE GOT TO HAVE UNIVERSAL HEALTH CARE WHETHER YOU MAKE A MILLION BUCKS OR NOTHING SAYS MS DOLL IN THE JOURNAL/NBC POLL 33 OF AMERICANS RANK UNIVERSAL COVERAGE AS THE MOST IMPORTANT GOAL OF HEALTHCARE REFORM THE HIGHEST FOR ANY OF THE SUGGESTED CHOICES LOWER MEDICAL RATES AND CAPPING COSTS PLACED SECOND WITH 18 IN CONTRAST TO THE SENTIMENTS OF THE PEOPLE IN YORK THOUGH THE POLL FOUND SOME WILLINGNESS TO ACCEPT A BILL THAT DOESN'T GUARANTEE COVERAGE FOR EVERYONE IN THE NEW POLL 43 OF AMERICANS SAY MR CLINTON SHOULD REFUSE TO SIGN A BILL THAT DOESN'T GUARANTEE UNIVERSAL COVERAGE 43 SAYS HE SHOULDN'T REFUSE WHEN THE PEOPLE IN YORK DISCUSS THEIR OWN HEALTH CARE THEY REFLECT THE FEELING AMONG MANY AMERICANS ABOUT THE PRECARIOUSNESS OF MEDICAL COVERAGE IN THE US TODAY OF THE 12 PEOPLE SEVEN HAVE BEEN WITHOUT HEALTH INSURANCE AT SOME TIME IN THE PAST FIVE YEARS ANOTHER LINDA LUTHER BAUMER WHO WORKS PARTTIME WORRIES THAT SHE'LL LOSE HER COVERAGE WHEN HER HUSBAND RETIRES IN THE NEXT YEAR OR TWO EITHER I'VE GOT TO GET A FULLTIME JOB THAT PROVIDES BENEFITS OR WE DON'T KNOW WHAT WE'RE GOING TO DO SHE SAYS FRED BINGAMAN A CUSTOMER SERVICE REPRESENTATIVE RECEIVES COVERAGE FOR HIS FAMILY THROUGH HIS EMPLOYER IN RETURN FOR A 3798 WEEKLY CONTRIBUTION HE'S SATISFIED WITH HIS HEALTH COVERAGE NOW BUT FIGURES I MAY NOT BE IN GOOD SHAPE TOMORROW OR AN HOUR FROM NOW WHILE THE PEOPLE IN YORK WORRY ABOUT RISING HEALTH COSTS THEY ALL SAY THEY WOULD PAY SOMETHING TO ENSURE UNIVERSAL COVERAGEIF THE SYSTEM IS FAIR I DON'T PAY NOW BUT I'D BE WILLING TO PAY AN EQUAL PERCENTAGE AS EVERYONE ELSE SAYS MR RENTZEL THE STEELWORKERS REPRESENTATIVE THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1503 ADULTS CONDUCTED FRIDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 315 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE AND SEX TO ENSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE CONTINENTAL US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 26 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 36 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP 9403100127 940310 YOUR MONEY MATTERS NEW YARDSTICK ON LIFE INSURERS IS HARD TO FIND TOUGH TO USE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL SINCE THE BEGINNING OF THIS MONTH CONSUMERS AND INVESTORS HAVE HAD A NEW WAY OF MEASURING WHETHER THEY ARE BUYING FROM A HEALTHY LIFEINSURANCE COMPANY BUT FINDING THE INFORMATION ISN'T EASY CALLED THE RISKBASED CAPITAL RATIO IT MEASURES HOW MUCH CAPITAL AN INSURANCE COMPANY HAS TO SUPPORT THE RISKINESS OF ITS INVESTMENTS AND OPERATIONS THE TROUBLE IS ALTHOUGH THE FIGURES FOR THE COUNTRY'S 2005 LIFEINSURANCE COMPANIES ARE AVAILABLE TO ANYONE KNOWLEDGEABLE ENOUGH TO WEED THROUGH THE PUBLIC RECORD STATE REGULATORS HAVE FORBIDDEN COMPANIES THEMSELVES FROM DISCLOSING THE DATA THEY FEAR INSURANCE AGENTS WILL EXPLOIT THESE CAPITALADEQUACY NUMBERS TO MAKE A SALE AND THAT THE PUBLIC WILL MISUNDERSTAND THEM REGULATORS HAVE ALSO WARNED RATING AGENCIES TRADITIONALLY THE SOURCES OF INFORMATION ON INSURANCECOMPANY STRENGTH NOT TO PUBLISH THE RESULTS AM BEST CO AND STANDARD & POOR'S CORP SAY THEY WILL HONOR THE REQUEST BUT OTHER AGENCIES SAY THEY ARE INCLINED TO IGNORE THE WARNING I THINK WE PROBABLY WILL PUBLISH THE NUMBERS BUT I WANT TO GET A CLEARER READING OF THE SITUATION SAID CHESTER MURRAY INSURANCE DIRECTOR OF MOODY'S INVESTORS SERVICE INC FORTUNATELY FOR CONSUMERS SOME CONSULTING FIRMS ARE RELEASING THE NUMBERS AND MEDIA OUTLETS PLAN TO PUBLISH THEM RESULTS FOR THE 20 LARGEST COMPANIES COMPILED BY THE HARTFORD CONN FIRM OF TOWNSEND & SCHUPP ACCOMPANY THIS STORY THE PRIMARY VALUE TO CONSUMERS IS TO IDENTIFY COMPANIES THAT ARE INADEQUATELY CAPITALIZED SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM A NEWSLETTER IN ELLETSVILLE IND ADDS MARTIN WEISS PRESIDENT OF WEISS RESEARCH INC A RATING AGENCY IN WEST PALM BEACH FLA WE FEEL THESE NUMBERS ARE EXTREMELY IMPORTANT IT'S UNFORTUNATE THAT THE REGULATORS HAVE SHROUDED THESE NUMBERS IN SECRECY RISKBASED CAPITAL RATIOS ARE INTENDED TO ACT AS AN EARLYWARNING DEVICE FOR REGULATORS TO SPOT COMPANIES IN FINANCIAL TROUBLE THEY ALSO GIVE REGULATORS MORE AUTHORITY TO TAKE ACTION AGAINST TROUBLED COMPANIES THE CALCULATIONS ARE BASED ON DIVIDING A COMPANY'S CAPITAL BY THE MINIMUM AMOUNT THAT REGULATORS REGARD AS NECESSARY TO SUPPORT ITS BUSINESS STATEINSURANCE DEPARTMENTS CAN ASK COMPANIES THAT FALL BELOW 125 TO PROVIDE THEM WITH MORE INFORMATION STATES CAN TAKE OVER COMPANIES THAT FALL BELOW 50 STATES MUST SEIZE COMPANIES FALLING BELOW 35 NONE OF THE 20 LARGEST INSURERS IS SUBJECT TO REGULATOR ACTION FOR INSTANCE PRUDENTIAL INSURANCE CO OF AMERICA THE COUNTRY'S LARGEST INSURER HAD A RATIO OF 1884 FOR YEAREND 1993 EQUITABLE COS' FLAGSHIP UNIT EQUITABLE LIFE ASSURANCE SOCIETY OF THE US COMES IN AT 1254 ALTHOUGH THAT FIGURE IS LOWER THAN THE OTHER BIG COMPANIES SHOWN IN THE CHART THE UNIT STILL HAS SIGNIFICANTLY MORE CAPITAL THAN THE MINIMUM LEVEL AT WHICH REGULATORS WOULD TAKE IT OVER IN A STATEMENT EQUITABLE SAID ANOTHER MEASURE OF CAPITAL ADEQUACY CAPITAL DIVIDED BY LIABILITIES PUTS THE COMPANY IN THE TOP 10 OF THE INDUSTRY IN TERMS OF FINANCIAL STRENGTH EQUITABLE ALSO POINTED OUT THAT IT HAS RAISED 14 BILLION IN CAPITAL DURING THE PAST TWO YEARS THE COMPANY ADDED THAT A SUBSIDIARY THAT ACCOUNTS FOR 80 OF ITS NEW SALES AND HALF ITS PREMIUM INCOME EQUITABLE VARIABLE LIFE INSURANCE CO IS EVEN BETTER CAPITALIZED FIGURES ON FILE WITH STATEINSURANCE DEPARTMENTS SHOW A RATIO OF 205 FOR THE UNIT INSURANCE EXPERTS SAY THE INFORMATION IS MEANINGFUL EVEN IN CASES WHERE INSURERS EXCEED THEIR MINIMUM REQUIREMENTS IF I WERE A REGULATOR I WOULD TAKE A HARD LOOK AT THE COMPANIES IN THEIR STATES THAT FALL IN THE BOTTOM 10 SAID FREDERICK TOWNSEND PRESIDENT OF TOWNSEND & SCHUPP WHERE THE RATIOS FAIL IS IN HELPING CONSUMERS DISTINGUISH BETWEEN GOOD COMPANIES ALTHOUGH THE ARGUABLY OVERCAPITALIZED STATE FARM LIFE A UNIT OF STATE FARM MUTUAL AUTOMOBILE INSURANCE CO OF BLOOMINGTON ILL SCORES MORE THAN 600 INSURANCE ANALYSTS SAY CONSUMERS SHOULDN'T CHOOSE STATE FARM SOLELY ON THAT BASIS MILWAUKEEBASED NORTHWESTERN MUTUAL LIFE INSURANCE CO SCORES LESS THAN HALF AS HIGH AS STATE FARM BUT IS GIVEN THE HIGHEST FINANCIAL STRENGTH RATINGS BY THE RATING AGENCIES IN ADDITION TO LOOKING AT FINANCIAL RESULTS THE RATINGS AGENCIES BASE THEIR SCORES ON INTERVIEWS WITH COMPANY OFFICIALS THE FORMULA WAS DEVELOPED LAST YEAR BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS A GROUP LED BY TERRENCE LENNON A FORMER NEW YORK DEPUTY INSURANCE SUPERINTENDENT WHO IS NOW A SENIOR VICE PRESIDENT WITH MET LIFE DURING ITS DEVELOPMENT INSURANCE COMPANIES TRIED TO KEEP THE RESULTS SECRET REGULATORS DISAGREED BUT THEY NEVERTHELESS AGREED TO A RULE FORBIDDING COMPANIES AND AGENTS FROM USING THE INFORMATION FOR MARKETING PURPOSES THIS WEEK THE AMERICAN COUNCIL OF LIFE INSURANCE THE LIFEINSURANCE INDUSTRY'S LARGEST TRADE GROUP TRIED AGAIN TO SUPRESS THE INFORMATION THE GROUP ASKED THE COMMISSIONERS' GROUP FOR PERMISSION FOR COMPANIES TO REPORT THE FIGURE ONLY WHEN IT FALLS BELOW 125 THE INDUSTRY FEELS THIS SHOULD NOT BE USED FOR RATING COMPANIES SAID GENE GRABOWSKI SPOKESMAN FOR THE AMERICAN COUNCIL OF LIFE INSURANCE THEY ARE ONLY ONE MEASURE OF A COMPANY AND SHOULD BE PUT IN CONTEXT WE'RE CERTAINLY NOT TRYING TO SWEEP ANYTHING UNDER THE RUG HE SAID THE INDUSTRY WORRIES THAT SOME COMPANIES AND SOME AGENTS MIGHT IMPROPERLY USE THE FIGURES MR BELTH IS A FERVENT ADVOCATE OF DISCLOSING THE FIGURES BUT HE BELIEVES THE INDUSTRY'S CONCERN IS VALID SOME SMALLER COMPANIES THAT DON'T EVEN HAVE RATINGS HAVE HIGHER RATIOS THAN THOSE OF THE INDUSTRY GIANTS HE SAID THEY WILL ADVERTISE IT TO DEMONSTRATE HOW STRONG THEY ARE BUT THEY AREN'T THE 20 LARGEST US LIFEINSURANCE COMPANIES LISTED ALPHABETICALLY AND THEIR YEAREND 1993 CAPITAL ADEQUACY AS MEASURED BY THEIR ADJUSTED CAPITAL AS A PERCENTAGE OF THEIR REQUIRED RISKBASED CAPITAL LEVEL NOTE COMPANIES FALLING BELOW 50 CAN BE TAKEN OVER BY STATE REGULATORS 9403100126 940310 BUSINESS BRIEF ARTEMIS SA FRENCH COMPANY MAY SELL US PRIME EQUIPMENT UNIT ARTEMIS SA A PARISBASED HOLDING COMPANY SAID IT IS EXPLORING STRATEGIC ALTERNATIVES FOR ITS PRIME EQUIPMENT UNIT INCLUDING A POSSIBLE SALE PRIME EQUIPMENT BASED IN HOUSTON IS A US EQUIPMENT RENTAL COMPANY SERVING THE CONSTRUCTION AND INDUSTRIAL MARKETS ITS 1994 REVENUE IS EXPECTED TO APPROACH 200 MILLION CLOSELY HELD ARTEMIS RETAINED BANEXI INTERNATIONAL THE US INVESTMENT BANKING UNIT OF BANQUE NATIONALE DE PARIS AS ITS ADVISER 9403100125 940310 ALLFEMALE TEAM PLANNED FOR 1995 AMERICA'S CUP NEW YORK WILLIAM I KOCH THE WINNING SKIPPER OF THE 1992 AMERICA'S CUP SAID HE PLANS TO LAUNCH THE FIRST ALLWOMEN'S TEAM TO COMPETE FOR THE SAILING TROPHY IN 1995 MR KOCH WHO IS CHAIRMAN AND CHIEF EXECUTIVE OF AMERICA3 THE FOUNDATION THAT IS SPONSORING THE TEAM SAID HIS GROUP WOULD PROVIDE THE SAME ORGANIZATION TECHNOLOGY AND EQUIPMENT TO THE WOMEN'S TEAM THAT IT PROVIDED TO THE WINNING TEAM IN 1992 MR KOCH SAID NINE OF 22 TEAM MEMBERS HAVE BEEN CHOSEN INCLUDING SEVERAL US OLYMPIC MEDALISTS TRYOUTS FOR REMAINING SPOTS BEGIN NEXT MONTH THE NEW YACHTING TEAM WILL COMPETE IN THE WORLD CHAMPIONSHIPS IN SAN DIEGO THIS FALL AND AGAINST THE TWO OTHER CANDIDATES SEEKING TO DEFEND THE US TITLE IN TRIALS SCHEDULED FOR JANUARY 1995 THROUGH APRIL 1995 THE WINNER WILL REPRESENT THE US IN THE AMERICA'S CUP COMPETITION IN MAY 1995 9403100124 940310 MITEL SHARE OFFERING PLANNED BY SCHRODER KANATA ONTARIO THE SCHRODER INVESTMENT GROUP PLANS A SECONDARY OFFERING OF 12 MILLION COMMON SHARES OF MITEL CORP AT 760 CANADIAN DOLLARS US561 A SHARE FOR A TOTAL OF C912 MILLION THE SALE WILL REDUCE THE GROUP'S MITEL HOLDING TO 23 MILLION SHARES OR 22 OF THE 105 MILLION SHARES OUTSTANDING OF THE TELECOMMUNICATIONSEQUIPMENT COMPANY SCHRODER SAID THE PLANNED SALE REFLECTS ITS INVESTMENT STRATEGY OF SELLING INVESTMENTS IN AN ORDERLY FASHION AND AT AN OPPORTUNE TIME IN ORDER TO PROVIDE LIQUIDITY TO ITS INVESTORS MITEL'S SHARES CLOSED YESTERDAY AT US575 A SHARE OFF 375 CENTS OR 61 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE THE SCHRODER GROUP INITIALLY HELD 51 OF MITEL'S SHARES IT PURCHASED THE SHARES IN 1992 FROM BRITISH TELECOMMUNICATIONS PLC A MAJOR BRITISH TELEPHONE UTILITY THE SECONDARY SHARE OFFERING WHICH IS BEING HANDLED BY A CANADIAN UNDERWRITING GROUP WILL BE MADE ONLY IN CANADA THE SCHRODER INVESTMENT GROUP INCLUDES A GROUP OF PARTNERSHIPS ADVISED BY SCHRODER VENTURES AN AFFILIATE OF SCHRODER PLC A BRITISH MERCHANT BANK 9403100123 940310 TOBACCO WORKERS MARCH TO PROTEST PROPOSED TAX WASHINGTON AN ESTIMATED 16000 TOBACCO INDUSTRY WORKERS MARCHED ON THE CAPITOL TO PROTEST THE CLINTON ADMINISTRATION'S PLAN TO RAISE TOBACCO TAXES TO HELP PAY FOR HEALTHCARE LEGISLATION THE RALLY WAS ORGANIZED PRIMARILY BY MEMBERS OF THE BAKERY CONFECTIONERY AND TOBACCO WORKERS UNION AND OTHER INDUSTRY EMPLOYEES ACCORDING TO RAY SCANNELL DIRECTOR OF RESEARCH AND SPECIAL PROJECTS FOR THE UNION PHILIP MORRIS COS AND OTHER COMPANIES GAVE THEIR EMPLOYEES THE DAY OFF TO ATTEND THE MARCH UNDER THE CLINTON HEALTHCARE PLAN THE TAX ON A PACK OF CIGARETTES WOULD RISE TO 99 CENTS FROM THE CURRENT 24 CENTS OTHER TOBACCO PRODUCTS ALSO WOULD BE HIT WITH HIGHER TAXES MANY OF THE MARCHERS CARRIED SIGNS WITH SLOGANS SUCH AS HEALTH CARE YES EXCISE TAX HIKE NO THE TOBACCO GROWERS INFORMATION COMMITTEE ESTIMATED THAT IF A 75 CENTAPACK TAX INCREASE WERE IMPOSED 18000 FARMERS WOULD LOSE THEIR JOBS THE MARCH STARTED AROUND NOON AT THE ELLIPSE WENT PAST THE WHITE HOUSE AND CONCLUDED ABOUT 90 MINUTES LATER AT THE CAPITOL STEPS THERE THE THRONG WAS ADDRESSED BY LABOR AND INDUSTRY LEADERS AS WELL AS LAWMAKERS FROM TOBACCOGROWING STATES 9403100122 940310 NCAA HOOPS STOCK MARKET ON INTERNET GOES BY BOARD ANN ARBOR MICH SPORTS MARKETS INC UNDER PRESSURE FROM THE NCAA PULLED THE PLUG ON ITS STOCKMARKETSIMULATED BASKETBALL CONTEST RUNNING ON THE INTERNET COMPUTER NETWORK THE CONTEST BY THE STARTUP RAN AFOUL OF THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION'S EFFORTS TO SEPARATE ITS ANNUAL BASKETBALL TOURNAMENT FROM ANY SEMBLANCE OF GAMBLING SAID FRANCIS CANAVAN NCAA SPOKESMAN IT'S AN UNFAIR AND ILLEGAL EXPLOITATION OF OUR TOURNAMENT MR CANAVAN SAID OF THE FIRST ANNUAL COLLEGE BASKETBALL STOCK MARKET CHALLENGE WE HAVE AN INTEREST IN PROTECTING OUR GOODWILL THE CONTEST WHICH WAS THE SUBJECT OF AN ARTICLE THIS WEEK IN THIS NEWSPAPER ALLOWED ENTRANTS TO TRADE SHARES ON THEIR COMPUTERS OF THE 64 TEAMS PLAYING IN THE NCAA TOURNAMENT THE GRAND PRIZE WAS 25000 ALTHOUGH SPORTS MARKETS COFOUNDERS BOAZ WEINSTEIN 20 YEARS OLD AND SIMON REEVES 22 HAVE CONCEDED DEFEAT THEY MAINTAIN THAT THEIR CONTEST WAS COMPLETELY LEGAL BUT THAT THEY COULDN'T AFFORD TO CHALLENGE THE NCAA IN COURT THIS TIME THE DAVID AND GOLIATH STORY DIDN'T WORK OUT THE SAME WAY MR WEINSTEIN SAID ANYONE WHO ENTERED THE PROGRAM FOR THE 6995 FEE CAN EXPECT A FULL REFUND 9403100121 940310 INTERNATIONAL FOKKER POSTS '93 LOSS TOTALING 2388 MILLION ON 73 SALES DECLINE SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM FOKKER NV SAID IT SWUNG DEEPLY INTO THE RED IN 1993 BECAUSE OF LOWER SALES HIGHER FINANCING COSTS AND RESTRUCTURING CHARGES THE GERMANDUTCH AEROSPACE GROUP WHICH IS 51OWNED BY THE DEUTSCHE AEROSPACE AG UNIT OF GERMANY'S DAIMLERBENZ AG RACKED UP 460 MILLION GUILDERS 2388 MILLION OF NET LOSSES LAST YEAR COMPARED WITH A 20 MILLIONGUILDER 104 MILLION PROFIT IN 1992 SALES DROPPED 73 TO 37 BILLION GUILDERS FROM 41 BILLION GUILDERS THE COMPANY'S 1993 LOSS WOULD HAVE BEEN SUBSTANTIALLY LARGER IF NOT FOR A BIG 850 MILLIONGUILDER DROP IN OPERATING COSTS DUE TO DRASTIC RESTRUCTURING MEASURES THAT INCLUDED LABOR AND PRODUCTION CUTBACKS BUT TO COVER THE COSTS OF RESTRUCTURING AND OF SALES OF AIRCRAFT AT A LOSS FOKKER TOOK TWO CHARGES TOTALING 365 MILLION GUILDERS THE NET LOSS WAS FAR WIDER THAN ANALYSTS' EXPECTATIONS OF A 150 MILLION TO 200 MILLION GUILDER DEFICIT FOKKER ALSO SAID IT HAS ASKED UNIONS REPRESENTING ITS WORKERS FOR FRESH CONCESSIONS AMOUNTING TO AN EFFECTIVE CUT IN COMPENSATION THROUGH 1996 THE PROPOSALS ARE PART OF A RESTRUCTURING THAT WILL ELIMINATE 1900 JOBS THIS YEAR ALONE 9403100120 940310 WHO'S NEWS LITTON NAMES LEONIS PRESIDENT AND CEO AS SPINOFF APPROACHES BEVERLY HILLS CALIF LITTON INDUSTRIES INC NAMED JOHN M LEONIS AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE AFTER THE SPINOFF OF THE DEFENSE CONTRACTOR'S COMMERCIAL BUSINESSES INTO WESTERN ATLAS INC IS COMPLETED LATER THIS MONTH MR LEONIS FORMERLY LITTON'S SENIOR VICE PRESIDENT AND THE GROUP EXECUTIVE HEADING ITS NAVIGATION GUIDANCE AND CONTROL SYSTEMS DIVISION SUCCEEDS ALTON J BRANN 52 MR BRANN WHO WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OF WESTERN ATLAS TAKES OVER AS LITTON'S CHAIRMAN ALTHOUGH HE WILL CEASE TO BE AN OPERATING LITTON EXECUTIVE AS CHAIRMAN HE SUCCEEDS ORION L HOCH 65 WHO REMAINS A DIRECTOR LITTON NAMED RUDOLPH E LANG JR A SENIOR VICE PRESIDENT AND FORMERLY CONTROLLER TO BE CHIEF FINANCIAL OFFICER MR LEONIS AND MR LANG 58 JOIN THE LITTON BOARD WHICH WILL BE REDUCED TO 10 DIRECTORS FROM 11 RESIGNING AS LITTON DIRECTORS AND JOINING THE WESTERN ATLAS BOARD WHEN THE SPINOFF TAKES EFFECT NEXT THURSDAY ARE PAUL BANCROFT III WILLIAM C EDWARDS AND STEVEN B SAMPLE LARRY A FRAME 58 SUCCEEDS MR LEONIS AS A SENIOR VICE PRESIDENT THE COMPANY ALSO NAMED JOHN E PRESTON 52 AS SENIOR VICE PRESIDENT AND GENERAL COUNSEL FRANK C MARSHALL JR 46 AS VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL AND KATHLEEN M WAILES 42 AS VICE PRESIDENT FOR CORPORATE COMMUNICATIONS AND INVESTOR RELATIONS 9403100119 940310 CARACO REACHES PACT ON DRUGS DETROIT CARACO PHARMACEUTICAL LABORATORIES LTD SAID IT HAS REACHED AN AGREEMENT WITH HEXALPHARMA GMBH OF MUNICH GERMANY TO ACQUIRE FROM ITS US AFFILIATE HEXAL PHARMACEUTICALS INC THE INGREDIENTS AND MANUFACTURING PROCESSES FOR AT LEAST TWO OF ITS GENERIC DRUGS TERMS WEREN'T DISCLOSED 9403100118 940310 DEFENSE CONVERSION PLANS MOVE SLOWLY REPORT SAYS WASHINGTON DEFENSE CONVERSION IS GETTING OFF TO A SLOW START ACCORDING TO A REPORT BY CONGRESSIONAL AUDITORS MUCH OF THE MONEY INTENDED TO HELP EASE THE ECONOMIC IMPACT OF CUTBACKS IN DEFENSE SPENDING HAS BEEN SLOW IN GETTING INTO THE PIPELINE THE GENERAL ACCOUNTING OFFICE REPORT SAID TWO FEDERAL REVIEWS OF THE EARLY STAGES OF PROGRAMS THAT HAVE RECEIVED FUNDING FOUND PROBLEMS THE REPORT SAID A REVIEW BY THE COMMERCE DEPARTMENT'S INSPECTOR GENERAL CONCLUDED THAT THREE OF SIX GRANTS MADE TO REDUCE THE EFFECT OF DEFENSE CUTBACKS ON COMMUNITIES HAD A QUESTIONABLE IMPACT THE PENTAGON'S INSPECTOR GENERAL WHEN LOOKING AT A PROGRAM INTENDED TO ASSIST DISPLACED DEFENSE PERSONNEL IN FINDING NEW EMPLOYMENT FOUND THAT INEFFECTIVE PLANNING AND OVERSIGHT HAD RESULTED IN IMPLEMENTATION PROBLEMS THE GAO SAID ASKED FOR COMMENT A WHITE HOUSE AIDE INVOLVED IN DEFENSE CONVERSION SAID THE GAO REVIEW LOOKED ONLY AT DEFENSE CONVERSION SPENDING THROUGH JULY OF LAST YEAR WHEN THE CLINTON ADMINISTRATION HAD BEEN IN OFFICE ONLY SIX MONTHS A FAIR AMOUNT HAS HAPPENED SINCE THEN THE AIDE SAID 9403100116 940310 TECHNOLOGY AKERS APPARENTLY GOT A GOLDEN BOOT' WHEN LEAVING IBM SEVERANCE PAYMENT TOTALED 3 MILLION IN CASH PLUS STOCK OPTIONS A BONUS BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN F AKERS MAY HAVE QUIT IBM DISPIRITED BUT IT TURNS OUT THE COMPANY PAID HIM HANDSOMELY FOR HIS TROUBLES INTERNATIONAL BUSINESS MACHINES CORP GAVE ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SEVERANCE PAYMENT OF MORE THAN 3 MILLION IN CASH LAST YEAR PLUS SALARY PENSION STOCK OPTIONS AND A BONUS THE EXACT TERMS OF MR AKERS'S DEPARTURE PACKAGE WILL BE DISCLOSED IN IBM'S 1994 PROXY STATEMENT WHICH MAY BE RELEASED AS EARLY AS TODAY IBM HAD INITIALLY SAID NO TO SUCH SEVERANCE PAYMENT OR GOLDEN BOOT CORPORATE PARLANCE FOR CEOS WHO ARE ALL BUT OUSTED WOULD BE MADE MR AKERS RESIGNED ON JAN 25 OF LAST YEAR UNDER BOARD PRESSURE AFTER VOWING FOR MONTHS TO SEE THE TROUBLED COMPUTER COMPANY THROUGH A WRENCHING RESTRUCTURING THERE'S NO SUCH THING HERE AS A GOLDEN PARACHUTE AN IBM SPOKESMAN SAID AT THE TIME BUT LAST MARCH THE COMPENSATION COMMITTEE OF THE IBM BOARD AUTHORIZED THE 3 MILLIONPLUS SEVERANCE ACCORDING TO ONE KNOWLEDGEABLE EXECUTIVE THAT WAS IN ADDITION TO THE ANNUAL PENSION OF 12 MILLION THAT MR AKERS WILL RECEIVE AND ABOUT 100000 STOCK OPTIONS THAT HE WAS GRANTED UPON EXIT THE OPTIONS ARE EXERCISABLE AT 46 A SHARE AND WOULD BE WORTH ALMOST 1 MILLION AT YESTERDAY'S CLOSING PRICE OF 55375 THE FORMER CHAIRMAN ALSO WAS PAID MORE THAN 300000 FOR THE FOUR MONTHS OF 1993 WHEN HE WAS ON THE PAYROLL MOREOVER MR AKERS WHO RAN IBM AS IT POSTED ITS FIRST OPERATING LOSS RECORDED MORE THAN 15 BILLION IN CHARGES AND HAD A STUNNING DECLINE OF 28 BILLION IN ITS STOCKMARKET VALUE ALSO RECEIVED A BONUS OF ABOUT 100000 IN 1992 MR AKERS EARNED 925000 IN SALARY PLUS A 375000 CASH BONUS AN IBM SPOKESMAN SAID THE COMPANY WOULD HAVE NO COMMENT UNTIL THE PROXY STATEMENT WAS RELEASED MR AKERS COULDN'T BE REACHED FOR COMMENT IBM SUBSEQUENTLY NAMED LOUIS V GERSTNER JR OF RJR NABISCO HOLDINGS CORP TO REPLACE MR AKERS AS CHAIRMAN AND CEO SHOULD MR GERSTNER SOMEDAY GET FORCED OUT HIS CONTRACT CALLS FOR HIM TO RECEIVE AT LEAST 6 MILLION IN SEVERANCE THREE TIMES HIS ANNUAL SALARY PLUS ANY BONUS JOANN S LUBLIN CONTRIBUTED TO THIS ARTICLE 9403100115 940310 ALLIED BANKSHARES ACQUISITION THOMSON GA ALLIED BANKSHARES INC SAID IT AGREED TO ACQUIRE CITIZENS BANK & TRUST BASED IN EVANS GA FOR 175 MILLION IN CASH AND STOCK THE TRANSACTION WHICH IS SUBJECT TO REGULATORY AND SHAREHOLDER APPROVAL IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER OF THIS YEAR 9403100114 940310 BUSINESSES ARE PAYING BILLS A LITTLE FASTER DUN & BRADSTREET SAYS NEW YORK MOST OF THE NATION'S BUSINESSES ARE PAYING THEIR BILLS A LITTLE FASTER A SURVEY INDICATED MOST BUSINESSES SHOWED ONLY MODEST IMPROVEMENT IN BILLPAYING PERFORMANCE DURING THE FOURTH QUARTER COMPARED TO THE PREVIOUS QUARTER ACCORDING TO A DUN & BRADSTREET INFORMATION SERVICES SURVEY DESPITE THE RECENT GLOWING REPORTS OF ECONOMIC IMPROVEMENT MANY BUSINESSES ARE STILL UNDER TREMENDOUS FINANCIAL STRAINS SAID DAVID KRESGE A D&B VICE PRESIDENT ALTHOUGH THERE WAS ECONOMIC EXPANSION IN 1993 IT WAS RATHER ERRATIC GAINS MADE IN 1992 STALLED OR EVEN REVERSED IN 1993 D&B'S QUARTERLY SURVEY IS BASED ON PAYMENT RECORDS OF ONE MILLION COMPANIES AS REPORTED BY THEIR SUPPLIERS TO DUN & BRADSTREET CORP THE SURVEY COMPARES THE LENGTH OF TIME IT TAKES COMPANIES TO PAY THEIR BILLS RELATIVE TO THE PREVIOUS QUARTER FOR THE THREE MONTHS ENDED DEC 31 THE SURVEY'S INDEX OF BILLPAYING PERFORMANCE WAS A MINUS 38 WHICH INDICATES THAT THE PERCENTAGE OF FIRMS PAYING SLOWER EXCEEDED THE PERCENTAGE PAYING FASTER BY 38 PERCENTAGE POINTS DESPITE THE NEGATIVE READING THE INDEX ROSE FROM THE PREVIOUS QUARTER'S MINUS 43 THE IMPROVEMENT IN BILLPAYING WAS LED BY SMALL AND MIDSIZE COMPANIES WHILE LARGE COMPANIES SHOWED NO CHANGE THE SURVEY SHOWS 9403100113 940310 MET LIFE AGENTS' SALES PRACTICES CALLED DECEPTIVE FLORIDA CHARGES CUSTOMERS MISLED ABOUT INSURANCE OTHER STATES MAY FOLLOW BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL FLORIDA'S INSURANCE DEPARTMENT ACCUSED 87 SALES AGENTS FOR METROPOLITAN LIFE INSURANCE CO OF FRAUDULENT SALES PRACTICES THE ADMINISTRATIVE COMPLAINT REPRESENTS ONE OF THE MOST SWEEPING ACTIONS EVER AGAINST A GROUP OF INSURANCE AGENTS IT ALSO COMES JUST DAYS AFTER MET LIFE SETTLED SIMILAR ACCUSATIONS BROUGHT BY ABOUT 40 STATES THE NEW YORKBASED INSURANCE COMPANY AGREED TO PAY A 20 MILLION FINE AND TO REFUND AS MUCH AS 76 MILLION TO 60000 CUSTOMERS AROUND THE US WHO WERE ALLEGEDLY DEFRAUDED THAT SETTLEMENT DIDN'T INCLUDE MET SALES AGENTS AS A RESULT OTHER STATES MAY FOLLOW FLORIDA AND FILE COMPLAINTS AGAINST MET AGENTS IN THEIR STATES TEXAS IS ALREADY PLANNING SUCH A MOVE THE FLORIDA COMPLAINT ACCUSES DANIEL RICK URSO WHO RAN MET'S TAMPA OFFICE AND WAS ONCE THE COMPANY'S MOST SUCCESSFUL AGENT AS WELL AS OTHERS WITH MISLEADING CUSTOMERS INTO BUYING LIFE INSURANCE BY CALLING IT A RETIREMENT ACCOUNT THE COMPLAINT COULD RESULT IN AGENTS BEING FINED AND LOSING THEIR LICENSE TO SELL INSURANCE DECEPTIVE SALES PRACTICES ARE WRONG THESE AGENTS SHOULD HAVE KNOWN IT AND THEY HAVE TO FACE THE CONSEQUENSES OF THEIR ACTS SAID FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER AN ATTORNEY REPRESENTING MR URSO BLAMED MET LIFE THE AGENTS WERE DOING WHAT THEY WERE TRAINED TO DO SAID MORRIS WEINBERG MR URSO IS A SCAPEGOAT HE WAS TRAINED TO DO THIS NONE OF THIS WAS INVENTED IN TAMPA HE SAID HE WILL FIGHT THE CHARGES MET LIFE FIRED MR URSO AS WELL AS MANY OF HIS SUPERIORS IN DECEMBER THE URSO WAY OF DOING BUSINESS IS NOT THE MET LIFE WAY OF DOING BUSINESS SAID MET SPOKESMAN CHARLES SAHNER HE BEARS RESPONSIBILITY FOR THE ACTIVITIES OF HIS OFFICE AND THOSE WHO WORK FOR HIM OF THE AGENTS CHARGED IN THE COMPLAINT 47 WORKED IN MR URSO'S OFFICE WHICH WAS THE BIGGEST PRODUCING OFFICE AT MET THE OPERATION RAN A NATIONAL SALES CAMPAIGN TARGETED AT REGISTERED NURSES THE OTHER 40 WORKED IN OFFICES ELSEWHERE IN THE STATE MOST OF THE AGENTS STILL WORK FOR MET WE WILL DEFEND THOSE AGENTS WHO MADE INNOCENT MISTAKES MR SAHNER SAID THE CHARGES REPRESENT AN ESCALATION IN THE EFFORT BY MR GALLAGHER TO ROOT OUT DECEPTIVE SALES PRACTICES IN THE LIFEINSURANCE INDUSTRY THEY ARE ALSO A PART OF A WIDER EFFORT BY INCREASINGLY AGGRESSIVE STATE INSURANCE REGULATORS ACROSS THE COUNTRY TO CRACK DOWN ON INSURANCE FRAUD ONE REASON FOR THEIR HEIGHTENED CONCERN IS THE FEAR THAT CONGRESS MIGHT TRY TO REPLACE THE CURRENT SYSTEM OF STATE INSURANCE REGULATION WITH FEDERAL OVERSIGHT FLORIDA OFFICIALS SAY THEY WILL PURSUE THE 87 INDIVIDUALS ON A CASEBYCASE BASIS AGENTS ARE SUBJECT TO A 2500 FINE FOR EACH VIOLATION THE INSURANCE DEPARTMENT CAN TAKE ADMINISTRATION ACTIONS AGAINST AGENTS WITHOUT GOING TO COURT SO FAR ABOUT 30 STATES REPRESENTING THE MAJORITY OF POLICYHOLDERS ALLEGEDLY DEFRAUDED BY MET HAVE SIGNED ON TO THE MULTISTATE AGREEMENT WITH MET NOTEWORTHY AMONG THE HOLDOUTS IS TEXAS WHICH WANTS TO STUDY THE AGREEMENT TO DETERMINE WHETHER IT IS IN THE BEST INTERESTS OF POLICYHOLDERS IN ITS STATE LIKE FLORIDA TEXAS SAID IT PLANS TO BRING CHARGES AGAINST AGENTS INVOLVED IN DECEPTIVE PRACTICES WE ARE COMPILING EVIDENCE AGAINST THE AGENTS NOW SAID INSURANCE DEPARTMENT SPOKESMAN LEE JONES NEW YORK MET'S HOME STATE HAS NO PLANS TO FILE CHARGES AGAINST AGENTS A SPOKESMAN SAID 9403100112 940310 RAYTHEON PLANS TO CONSOLIDATE CUT 4400 JOBS COMPANY WILL TAKE CHARGE OF 162 MILLION BUT SEES PROFIT FOR FIRST QUARTER BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL LEXINGTON MASS RAYTHEON CO MOVING TO REDUCE COSTS IN BOTH ITS DEFENSE AND COMMERCIAL BUSINESSES SAID IT WILL CONSOLIDATE OPERATIONS AND CUT AS MANY AS 4400 JOBS OR 7 OF ITS WORK FORCE IN THE NEXT TWO YEARS THE PLAN WHICH ANALYSTS PRAISED WILL RESULT IN A CHARGE OF 162 MILLION OR 120 A SHARE IN THE FIRST QUARTER ENDING APRIL 3 RAYTHEON SAID IT STILL EXPECTS TO REPORT A FIRSTQUARTER PROFIT AFTER THE CHARGE AS WELL AS RECORD SALES BUT DID NOT PROVIDE ESTIMATES IN THE 1993 FIRST QUARTER THE COMPANY HAD NET INCOME OF 1575 MILLION OR 116 A SHARE ON SALES OF 22 BILLION RAYTHEON'S ANNOUNCEMENT OF THE LARGEST RESTRUCTURING IN ITS 72YEAR HISTORY IS THE LATEST IN A SERIES OF CUTBACKS AND CONSOLIDATIONS SWEEPING THE DEFENSE INDUSTRY AS IT ADAPTS TO CONTINUING REDUCTIONS IN PENTAGON SPENDING ON MONDAY AEROSPACE GIANT MARTIN MARIETTA CORP AGREED TO BUY AIRCRAFT MAKER GRUMMAN CORP FOR 19 BILLION BUT RAYTHEON ALSO SAID IT WAS TAKING A NUMBER OF CONSOLIDATION STEPS TO RESPOND TO INCREASING COMPETITIVE PRESSURES IN ITS NONDEFENSE BUSINESSES THEY INCLUDE ENGINEERING AND CONSTRUCTION ELECTRONICS AIRCRAFT AND APPLIANCES SEVERAL ANALYSTS SAID THE RESTRUCTURING WILL ALLOW THE COMPANY TO CONTINUE ITS HIGH OPERATING MARGINS RAYTHEON HAS BEEN PRETTY GOOD AT AVOIDING SIGNIFICANT PROBLEMS IN THIS DOWN CYCLE AND YOU HAVE TO BELIEVE THAT THIS SORT OF POSITIONS THEM TO CONTINUE TO BE NOT AT RISK SAID HOWARD A RUBEL OF GOLDMAN SACHS & CO IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY RAYTHEON SHARES ROSE 625 CENTS TO CLOSE AT 64625 RAYTHEON LATELY HAS BEEN EXPANDING ITS NONDEFENSE INTERESTS LAST YEAR IT PURCHASED THE ASSETS OF EBASCO SERVICES INC A CONSTRUCTION COMPANY AND BRITISH AEROSPACE PLC'S BUSINESSJET UNIT IN COMMENTS TO REPORTERS YESTERDAY A RAYTHEON SPOKESWOMAN SAID THE COMPANY WAS COMMITTED TO THE DEFENSE BUSINESS BUT REITERATED A LONGSTANDING GOAL OF EARNING HALF OF PROFITS FROM ITS COMMERCIAL VENTURES AT THE MOMENT THE COMPANY'S DEFENSE SIDE ACCOUNTS FOR 65 OF EARNINGS AS PART OF ITS RESTRUCTURING RAYTHEON SAID IT WILL COMBINE ALL OF ITS MISSILE MANUFACTURING OPERATIONS IN NEW ENGLAND IN ITS FACILITY IN ANDOVER MASS IT ALSO WILL CREATE A NEW MATERIALS CENTER IN ANDOVER THAT WILL SERVICE MOST OF THE COMPANY'S DEFENSE BUSINESSES AS A RESULT THE COMPANY WILL CLOSE THREE MASSACHUSETTS FACILITIES IN LOWELL NORTHBORO AND NORWOOD AND TRANSFER DEFENSEELECTRONICS SUBASSEMBLY WORK FROM MANCHESTER NH TO ANDOVER THE COMPANY SAID THE RESTRUCTURING ISN'T RELATED TO THE ARMY'S RECENT RECOMMENDATION TO PURCHASE A NEW MISSILEINTERCEPTOR SYSTEM BEING DEVELOPED BY LORAL CORP WHICH COULD ULTIMATELY DRAIN SUBSTANTIAL BUSINESS FROM RAYTHEON'S WELLKNOWN PATRIOT SYSTEM A FINAL DECISION BY THE PENTAGON HAS NOT BEEN ANNOUNCED RAYTHEON'S BEECH AIRCRAFT UNIT WILL MOVE SOME MANUFACTURING OPERATIONS TO WICHITA KAN RESULTING IN THE CLOSING OF ITS PLANT IN SELMA ALA RAYTHEON MARINE WHICH MAKES RECREATIONAL MARINE EQUIPMENT WILL CONSOLIDATE ITS US FACILITIES AT MANCHESTER NH AND EUROPEAN FACILITIES AT PORTSMOUTH ENGLAND RAYTHEON ENGINEERS & CONSTRUCTORS WILL REALIGN CERTAIN OF ITS ENGINEERING OPERATIONS ESTABLISHING AN INTERNATIONAL OPERATIONS CENTER IN HOUSTON THE COMPANY SAID INITIAL JOB LOSSES WILL TOTAL 2125 EMPLOYEES WHO WILL BE LAID OFF IN THE COMING MONTHS AN ADDITIONAL 2275 WORKERS ARE EXPECTED TO BE LET GO BY EARLY 1995 THAT WILL REDUCE RAYTHEON'S WORLDWIDE WORK FORCE TO ABOUT 59100 FROM A PEAK OF 77650 FIVE YEARS AGO 9403100111 940310 MAGMA EXPECTS PRICE OF COPPER TO REACH 1 BY END OF THE YEAR NEW YORK MAGMA COPPER CO SAID IT EXPECTS COPPER PRICES TO REACH 1 A POUND BY YEAR'S END AND THINKS 1995 WILL BE A VERY BIG YEAR FOR THE MINING COMPANY J BURGESS WINTER PRESIDENT AND CHIEF EXECUTIVE OFFICE REITERATED HIS BELIEF THAT COPPER PRICES CURRENTLY AT ABOUT 88 CENTS TO 89 CENTS A POUND WILL RALLY TO AT LEAST 1 A POUND BY YEAR'S END MR WINTER ALSO SAID HE WAS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR THE FIRST QUARTER BUT THE COMPANY'S PERFORMANCE HINGED ON THE MARKET PRICE OF COPPER THE ANALYSTS' CONSENSUS HOVERS AROUND THREE CENTS A SHARE FOR THE FIRST QUARTER A FIGURE THAT THE COMPANY SAID IT WOULD NOT HAVE ANY PROBLEM BEATING BASED ON CURRENT CONDITIONS IN THE FIRST QUARTER OF 1993 MAGMA HAD NET INCOME OF 276000 OR ONE CENT A SHARE ON SALES OF 1946 MILLION THE COMPANY SAID RAINFALL IN KEY ARIZONA MINING REGIONS REDUCED FIRSTQUARTER EARNINGS LAST YEAR ABOUT 13 MILLION MAGMA ADDED THAT IT WAS COMFORTABLE WITH AN EARNINGS ESTIMATE OF 34 CENTS A SHARE FOR 1994 BUT THE COMPANY CAUTIONED THAT THE ESTIMATE CONTAINS A WIDE RANGE OF EARNINGS PROJECTIONS LINKED TO COPPER PRICES THE COMPANY SAID BETTERING THAT ESTIMATE DEPENDS ON A COPPER PRICE AT YEAR END BETWEEN 90 CENTS AND 1 A POUND MR WINTER SAID THE STRENGTHENING US ECONOMY HAS INCREASED DEMAND FOR COPPER AT HOME BUT CRUCIAL EXPORT MARKETS ESPECIALLY IN WESTERN EUROPE AND JAPAN CONTINUE TO SUFFER BUT I BELIEVE THINGS ARE STARTING TO LOOK UP IN SOME PARTS OF EUROPE MR WINTER SAID MAGMA COPPER SPUN OFF FROM NEWMONT MINING CO IN 1988 HAS STEADILY BEEN REBUILDING ITS BALANCE SHEET THE COMPANY'S DEBTTOEQUITY RATIO HAS TUMBLED FROM NEARLY 60 IN 1988 TO THE MID30 RANGE LAST WEEK STANDARD & POOR'S CORP UPGRADED THE COMPANY'S SENIOR DEBT TO TRIPLEBMINUS THE COMPANY'S FIRST INVESTMENTGRADE RATING 9403100110 940310 DIVIDEND NEWS JC PENNEY CO JC PENNEY CO RAISED ITS QUARTERLY DIVIDEND 17 AND APPROVED THE REPURCHASE OF AS MUCH AS 573 MILLION IN COMMON STOCK THE NEW DIVIDEND OF 42 CENTS A SHARE UP FROM 36 CENTS IS PAYABLE MAY 1 TO STOCK OF RECORD APRIL 8 PENNEY OF PLANO TEXAS SAID THE BUYBACK OF AS MANY AS 10 MILLION SHARES IS INTENDED TO OFFSET THE ISSUANCE OF COMMON STOCK UNDER THE COMPANY'S EQUITY COMPENSATION PLANS UNDER THOSE PLANS THE RETAILER ISSUED 13 MILLION SHARES IN 1993 AND 15 MILLION SHARES THE YEAR BEFORE PENNEY HAD ABOUT 261 MILLION FULLY DILUTED SHARES OUTSTANDING AS OF JAN 31 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PENNEY SHARES CLOSED AT 5725 UNCHANGED 9403100109 940310 WHO'S NEWS INTERVOICE INC INTERVOICE INC DALLAS MIKE BARKER SENIOR VICE PRESIDENT OF SALES AND MARKETING WAS NAMED CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS MAKER OF TELEPHONECALL AUTOMATION EQUIPMENT AS CHIEF OPERATING OFFICER MR BARKER 45 YEARS OLD SUCCEEDS DAVID BRANDENBURG 49 WHO REMAINS PRESIDENT 9403100108 940310 MCI PLANS PHONE LINK TO CUBA WASHINGTON MCI COMMUNICATIONS INC SAID IT WILL PROVIDE DIRECTDIAL LONGDISTANCE PHONE SERVICE BETWEEN THE US AND CUBA IN THE NEXT FEW MONTHS MCI SAID IT ENTERED AN AGREEMENT WITH EMPRESSA DE TELECOMMUNICATIONES DE CUBA TO PROVIDE PHONE SERVICE BETWEEN THE COUNTRIES AND IS AWAITING US APPROVAL DIRECT TELEPHONE SERVICE BETWEEN THE US AND CUBA HAS BEEN RESTRICTED FOR OVER THIRTY YEARS ACCORDING TO MCI CURRENTLY ONLY 300 OR SO CALLS PLACED THROUGH AN OPERATOR ARE PERMITTED A DAY THE LONG DISTANCE CARRIER SAID ABOUT 15 MILLION CUBANAMERICANS LIVE IN THE US FOLLOWING THIS AGREEMENT MCI SAYS IT REMAINS RESTRICTED FROM PROVIDING DIRECTDIAL SERVICE TO ONLY ONE COUNTRY IN THE WORLD NORTH KOREA 9403100107 940310 ENTERPRISE COMPANY HAS HEAD START IN ELECTRONIC COMPUTER SALES MICROSOFTTCI TV VENTURE FACES ONLINE RIVALRY FROM DESKTOP CHANNEL BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP AND TELECOMMUNICATIONS INC UNVEILED PLANS THIS WEEK TO JOINTLY DEVELOP A CABLETELEVISION CHANNEL THAT WILL PEDDLE COMPUTER HARDWARE SOFTWARE AND ACCESSORIES THE SOFTWARE AND CABLE GIANTS EXPECT TO LAUNCH THEIR ELECTRONIC SHOPPING CHANNEL NEXT YEAR THAT WILL PUT MICROSOFT AND TCI A WHOLE YEAR BEHIND THE DESKTOP CHANNEL A SMALL PEABODY MASS COMPANY THAT DESPITE ITS NAME HAS NOTHING TO DO WITH TELEVISION BUT DOES OFFER 20000 COMPUTER PRODUCTS TO SHOPPERS THROUGH AN ONLINE COMPUTER SERVICE CUSTOMERS PURCHASE GOODS BY COMMUNICATING WITH THE COMPANY THROUGH THEIR PERSONAL COMPUTERS MANY SMALL COMPANIES CARVE LUCRATIVE NICHES IN EMERGING INDUSTRIES ONLY TO HAVE THEIR MARKETS GOBBLED UP ONCE CORPORATE BEHEMOTHS ENTER THE FRAY SKEPTICS BELIEVE DESKTOP CHANNEL COULD MEET THE SAME FATE BUT DESKTOP CHANNEL'S FOUNDERS THINK THEIR HEAD START AND HARD WORK WILL KEEP THEIR FRANCHISE SAFE FOR SOME TIME WE WILL HAVE THE LARGEST COMPUTER SUPERSTORE IN THE WORLD BY THE END OF THE YEAR IN TERMS OF PRODUCT OFFERINGS SAYS HENRY BERTOLON DESKTOP CHANNEL'S PRESIDENT NOBODY WILL BE ABLE TO COMPETE WITH US BECAUSE DESKTOP KEEPS LEAN INVENTORIES THAT IT CAN TRACK AND SELL QUICKLY THE OFFICIAL ADDS MR BERTOLON'S EXUBERANCE SEEMS WELLFOUNDED HE AND HIS PARTNER JEFF FILMORE HAVE ALREADY BUILT AN EXTREMELY SUCCESSFUL ENTERPRISE BROKERING SEMICONDUCTOR SALES FOR CORPORATE USERS THE PARTNERS SAY THEIR EXPERIENCE RUNNING THAT BUSINESS PLUS THE THREE YEARS SPENT DEVELOPING THE PROPRIETARY SOFTWARE AT THE CORE OF DESKTOP CHANNEL'S SERVICE SHOULD PROTECT THEM FROM ALL COMPETITORS BUT SKEPTICS RAISE EYEBROWS THEY'LL HAVE TO DO ENORMOUS VOLUME TO BE SUCCESSFUL SAYS CASEY DWORKIN GENERAL MANAGER OF PERSONAL TECHNOLOGY RESEARCH INC A WALTHAM MASS RESEARCH FIRM TO BE SURE DESKTOP CHANNEL ISN'T THE FIRST COMPANY TO OFFER COMPUTER PRODUCTS ON LINE MAJOR COMPANIES SUCH AS PRODIGY SERVICES CO COMPUSERVE INC AND CUC INTERNATIONAL INC HAVE RETAILED ONLINE FOR YEARS WITH COMPUTER PRODUCTS A VERY POPULAR THOUGH SOMEWHAT LIMITED CATEGORY OTHER ENTREPRENEURS BESIDES DESKTOP CHANNEL RECENTLY HAVE FOUND SUCCESS BY BUILDING THEIR BUSINESSES AROUND ONLINE MARKETING OF PARTICULAR COMPUTER PRODUCTS SUCH AS INTERNATIONAL BUSINESS MACHINES CORP'S OS/2 OPERATING SYSTEM BUT DESKTOP CHANNEL REPRESENTS ONE OF THE FIRST ATTEMPTS TO OFFER A FULLBLOWN SUPERSTORE ON LINE WITH A BROAD RANGE OF PRODUCT CATEGORIES AND HIGHLY COMPETITIVE PRICING WILLIAM BLUESTEIN RESEARCH DIRECTOR AT FORRESTER RESEARCH INC A COMPUTER CONSULTING CONCERN IN CAMBRIDGE MASS IS EXCITED BY THE COMPANY'S PROSPECTS IT SHOWS FOR THE FIRST TIME HOW A PRIVATE COMPANY CAN DEVELOP ITS OWN ONLINE SERVICE TO DIRECTLY REACH ITS OWN CUSTOMERS AND THAT CUSTOMER BASE IS BOOMING THE ONLINE SERVICE INDUSTRY IS EXPECTED TO GROW TO 3 BILLION BY 1998 FROM 530 MILLION IN 1993 ACCORDING TO FORRESTER RESEARCH SMALL COMPANIES SUCH AS DESKTOP CHANNEL SEEK TO SNARE A PORTION OF THIS EXPANDING BUSINESS THOUGH OPERATING ONLY SINCE LAST MONTH DESKTOP CHANNEL GREW OUT OF A BEVERLY MASS BUSINESS LAUNCHED 14 YEARS AGO BY MESSRS BERTOLON AND FILMORE THE PAIR DUBBED THEIR VENTURE NEW ENGLAND CIRCUIT SALES INC INTENDING TO CAPITALIZE ON RISING DEMAND FOR PERSONAL COMPUTERS BY BUYING AND SELLING SEMICONDUCTORS FOR CORPORATE USERS ODDLY ENOUGH A BAD ECONOMY HELPED THE SLACKENED DEMAND FOR SEMICONDUCTORS THAT ACCOMPANIED THE 1982 RECESSION LED TO AN OVERSUPPLY OF THE COMPUTER CHIPS THE CHIPS WERE SO CHEAP THAT THE PARTNERS WENT ON A BUYING SPREE ONLY TO FACE THE PROBLEM OF DISPOSING OF THEIR BURGEONING INVENTORY THEIR SOLUTION WAS TO DESIGN SOFTWARE THAT COULD TRACK THEIR SEMICONDUCTOR INVENTORY ANY TIME AN ORDER ARRIVED THE EXPERIENCE OF BUILDING AN INHOUSE DATA BASE AND A STAFF FOR LOCATING THE AVAILABILITY OF SEMICONDUCTORS IS WHAT ALLOWED US TO DEVELOP THE COMPETENCE TO DO WHAT WE'RE DOING NOW RECALLS MR BERTOLON 41 YEARS OLD MR BERTOLON SAYS THE CLOSELY HELD FIRM'S REVENUE HAS DOUBLED IN EACH OF THE PAST FOUR YEARS REACHING 157 MILLION IN 1993 UP FROM 78 MILLION IN 1992 ENCOURAGED BY THEIR SUCCESS BROKERING SEMICONDUCTORS THE PARTNERS BEGAN DEVELOPING SOFTWARE THREE YEARS AGO THAT WOULD LET THEM TRACK A COMPLETE INVENTORY OF COMPUTER PRODUCTS THE COMPANY WHICH RECENTLY RENAMED ITSELF NECX INC SPENT 3 MILLION ON THAT SOFTWARE AND STARTED AN ONLINE DIVISION DESKTOP CHANNEL TO MANAGE THE BUSINESS NECX STARTED TO ADVERTISE THE SERVICE IN TRADE PUBLICATIONS SIX WEEKS AGO AND SAYS IT ALREADY HAS RECEIVED 6000 INQUIRIES USERS CALL A TOLLFREE NUMBER TO REACH A COMPUTER MENU LISTING INFORMATION ABOUT PRICE SPECIFICATIONS AND REVIEWS OF PRODUCTS INCLUDING ANY INDUSTRY AWARDS BUYERS CAN BUILD A SHOPPING LIST TO MEET THEIR REQUIREMENTS COVERING PRICE MANUFACTURER OR PERFORMANCE SPECIFICATIONS ABOUT 800 BRANDNAME MANUFACTURERS ARE REPRESENTED NECX SAYS IT WILL OFFER 50000 PRODUCTS BY THE END OF THE YEAR DESKTOP INITIALLY IS TARGETING CORPORATE GOVERNMENTAL AND EDUCATIONAL USERS TO GENERATE THE VOLUME IT NEEDS TO KEEP PRICES LOW THE COMPANY SAYS IT WILL CONSIDER CONSUMER SALES LATER DESPITE STRONG INITIAL INTEREST SALES SO FAR HAVE BEEN SLOW THE COMPANY SAYS IT HAS SOLD ABOUT 400000 OF MERCHANDISE THROUGH DESKTOP CHANNEL BUT OFFICIALS SAY THEY ARE STILL REFINING THE SERVICE AND PLAN A BIGGER MARKETING EFFORT OVER THE NEXT TWO MONTHS EVEN A YEAR FROM NOW DESKTOP CHANNEL WON'T FACE A DIRECT CHALLENGE FROM TCI AND MICROSOFT SINCE THOSE COMPANIES WILL TARGET THE CONSUMER MARKET AND WILL SELL THROUGH TELEVISION BUT THEIR APPROACH RAISES THE BROADER QUESTION OF WHETHER COMPUTERS OR TELEVISION ULTIMATELY WILL APPEAL MORE TO THE GENERAL PUBLIC THERE'S SPECULATION THAT ONLINE SERVICES WILL LEAPFROG INTERACTIVE TELEVISION BUT NO ONE IS SURE SAYS RICK FERNANDES ONLINE SERVICES MANAGER FOR CUC INTERNATIONAL IN STAMFORD CONN CONSUMERS ARE GOING TO HAVE MANY MORE OPTIONS IN TERMS OF COMPUTER RETAILING THE QUESTION IS WHO IS GOING TO MAKE IT WORK 9403100106 940310 PROBE OF GENERAL INSTRUMENT RESULTED IN LARGE PART FROM VIACOM TCI FEUD BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A JUSTICE DEPARTMENT INVESTIGATION INTO GENERAL INSTRUMENT CORP'S POWERFUL POSITION IN THE CABLETELEVISION EQUIPMENT MARKET SPRANG IN LARGE PART FROM THE BITTER FEUD BETWEEN VIACOM INC'S OWNER SUMNER REDSTONE AND CABLETV MOGUL JOHN C MALONE OF TELECOMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE JUSTICE DEPARTMENT BEGAN ITS INVESTIGATION LATE LAST YEAR AFTER VIACOM FILED A SWEEPING ANTITRUST LAWSUIT AGAINST TCI AND OTHER CABLETV COMPANIES THE LEGAL ASSAULT IN WHICH VIACOM ACCUSED TCI OF MONOPOLIZING THE CABLETV INDUSTRY WAS VIACOM'S COUNTERATTACK AGAINST TCI AND ITS CHIEF EXECUTIVE OFFICER MR MALONE MR MALONE BACKED QVC INC IN THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC WHICH VIACOM ULTIMATELY WON LAST MONTH AMONG THE MAJOR ACCUSATIONS IN THE SUIT WHICH IS PROCEEDING VIACOM ALLEGED A TCI/GI GENERAL INSTRUMENT CONSPIRACY TO CREATE AND CONTROL DISTRIBUTION OF CABLETELEVISION PROGRAMMING THROUGH THE USE OF THE EQUIPMENT SUPPLIER'S TECHNOLOGY TCI ENGLEWOOD COLO IS THE NATION'S LARGEST CABLETV OPERATOR WHILE GENERAL INSTRUMENT BASED IN CHICAGO IS ONE OF THE LARGEST PROVIDERS OF EQUIPMENT THE INQUIRY WAS FIRST REPORTED BY SATELLITE BUSINESS NEWS A TRADE PUBLICATION THE JUSTICE DEPARTMENT CONFIRMED EARLIER THIS WEEK THAT IT IS PURSUING A BROAD INQUIRY INTO INVESTIGATING ARRANGEMENTS AND PRACTICES IN THE CABLETV INDUSTRY IT DECLINED TO PROVIDE DETAILS OR IDENTIFY ANY SUBJECTS OF ITS PROBE MEANWHILE GENERAL INSTRUMENT'S CHAIRMAN DANIEL AKERSON SAID YESTERDAY THE COMPANY HAD BEEN TWICE CONTACTED BY THE JUSTICE DEPARTMENT AND THAT IT IS COOPERATING FULLY MEANWHILE GENERAL INSTRUMENT'S MAIN COMPETITOR SCIENTIFICATLANTA INC SAID THE FEDERAL INVESTIGATORS HAVE ISSUED A SUBPOENA AND THAT THE COMPANY IS COMPLYING SCIENTIFICATLANTA BASED IN ATLANTA ADDED THAT THE JUSTICE DEPARTMENT INFORMED IT THAT IT WASN'T A TARGET OF THE INVESTIGATION A TCI SPOKESMAN SAID THE CABLE GIANT HASN'T BEEN CONTACTED HE ADDED THAT TCI DOESN'T SEE ANY ANTITRUST EXPOSURE AS THE JUSTICE DEPARTMENT INVESTIGATION HEATS UP HOWEVER THERE ARE SIGNS THAT VIACOM AND TCI MAY WANT TO SETTLE THEIR PRIVATE DIFFERENCES IN AN INTERVIEW LAST MONTH MR REDSTONE VIACOM'S CHAIRMAN AND CONTROLLING SHAREHOLDER EXPRESSED RESPECT FOR MR MALONE AND NOTED THAT SINCE THE SUIT WAS FILED TCI AND VIACOM'S PAYTV SERVICE SHOWTIME HAD REACHED AN INTERIM AGREEMENT FOR TCI TO CARRY THE CHANNEL I EXPECT TO MEET WITH HIM MR MALONE SOON MR REDSTONE SAID ADDING THAT VIACOM ISN'T LOOKING FOR WAR BUT PEACE THE TWO REPORTEDLY WERE EXPECTED TO HOLD DISCUSSIONS THIS WEEK MOREOVER SPECULATION OF A POSSIBLE SETTLEMENT OF THE LAWSUIT AROSE TWO WEEKS AGO AFTER TALKS WERE HELD BETWEEN TCI AND BLOCKBUSTER ENTERTAINMENT CORP WHICH VIACOM ALREADY HAS AGREED TO ACQUIRE THE DISPUTE WAS HARSH AND EXPRESSED IN PERSONAL TONES IN THE SUIT WHICH TCI DISMISSED AS FRIVOLOUS VIACOM ACCUSED MR MALONE OF USING BULLYBOY TACTICS AND STRONGARMING COMPETITORS IT ADDED IN THE AMERICAN CABLE INDUSTRY ONE MAN HAS OVER THE LAST SEVERAL YEARS SEIZED MONOPOLY POWER THAT MAN IS JOHN C MALONE 9403100105 940310 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK CHARLES LAZARUS WAS ELECTED A DIRECTOR OF THIS DEFENSEELECTRONICS AND SPACECOMMUNICATIONS COMPANY INCREASING BOARD MEMBERSHIP TO 11 MR LAZARUS 69 YEARS OLD IS CHAIRMAN AND FOUNDER OF TOYS R US INC 9403100104 940310 FOREIGN EXCHANGE DOLLAR GAINS AGAINST THE YEN ON SIGNS OF BID TO SETTLE USJAPAN TRADE ROW BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RECEIVED A BOOST AGAINST THE YEN YESTERDAY ON SIGNS THE US AND JAPAN ARE MAKING PEACE IN THEIR LONGFESTERING TRADE DISPUTE BUT THE US CURRENCY FELL AGAINST THE MARK ON A SMALLERTHANEXPECTED CUT IN THE BUNDESBANK'S SECURITIESREPURCHASE RATE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17025 MARKS DOWN FROM 17143 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10580 YEN UP FROM 10580 YEN STERLING WAS TRADING AT 14944 UP FROM 14880 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10558 YEN AND AT 16935 MARKS THE DOLLAR ACHIEVED ITS BIGGEST GAINS OF THE DAY AGAINST THE YEN FOLLOWING COMMENTS BY US TRADE REPRESENTATIVE MICKEY KANTOR THAT THE US AND JAPAN APPEAR CLOSE TO RESOLVING THE TRADE DISPUTE OVER MOTOROLA INC'S ACCESS TO JAPAN'S CELLULARTELEPHONE MARKET CITED THAT WITH REMARKS BY SECRETARY OF STATE WARREN CHRISTOPHER THAT THE US WISHES TO AVOID A TRADE WAR WITH JAPAN GAVE THE MARKET CONFIDENCE THAT THE US IS BACKING AWAY FROM ANY ATTEMPT TO PUSH FOR A STRONG YEN TO ADDRESS JAPAN'S TRADE IMBALANCE KANTOR'S COMMENTS IN PARTICULAR MADE PEOPLE WONDER IF THE SUPER 301 CLUB IS BEING PUT BACK IN THE CLOSET SAID RANDOLPH DONNEY DIRECTOR OF RESEARCH AT PEGASUS ECONOMETRIC GROUP IN NEW YORK SUPER 301 IS A PROVISION THAT PERMITS RETALIATORY ACTION AGAINST NATIONS THE US DEEMS ENGAGE IN UNFAIR TRADE PRACTICES WHILE THERE ISN'T ANY DIRECT LINK BETWEEN THE MOTOROLA DISPUTE AND POSSIBLE ACTIONS ON PRESIDENT CLINTON'S REAUTHORIZATION LAST WEEK OF SUPER 301 THE APPARENT ABOUTFACE ON TRADE HAS ABATED PRESSURE TO KEEP THE YEN STRONG MR DONNEY SAID STILL THE DOLLAR'S RISE TO AN INTRADAY HIGH OF 10605 YEN WAS FIRMLY CAPPED BY STRONG TECHNICAL RESISTANCE THE MARKET IS LEERY OF TAKING THE DOLLAR ABOVE 106 YEN WHERE JAPANESE EXPORTERS ARE SEEN WITH BIG ORDERS TO SELL THE DOLLAR AND TAKE PROFITS SAID MATT PORIO VICE PRESIDENT AT CHASE MANHATTAN BANK BUT HE NOTED DOLLARYEN MOVEMENTS WILL CONTINUE TO PIVOT AROUND THE ISSUE OF TRADE RATHER THAN AROUND THE RELATIVE STRENGTHS AND WEAKNESSES OF THE US AND JAPANESE ECONOMIES THESE WERE THE FIRST STATEMENTS THAT WE'VE SEEN THAT HAVE BEEN POSITIVE IN TERMS OF THE TRADE ISSUE AND THE YEN IS A TRADEDOMINATED CURRENCY MR PORIO SAID THE BIGGEST BENEFICIARY OF THE YEN'S SOFTENING HOWEVER WAS THE MARK THE MARK GAINED STRENGTH ACROSS THE BOARD ON THE BUNDESBANK'S MEAGER THREEBASISPOINTS EASING OF ITS RATE FOR SECURITIES REPURCHASE AGREEMENTS OR REPOS THE REPO RATE THE BUNDESBANK'S FAVORED INSTRUMENT FOR INFLUENCING MONEY MARKETS WAS CUT TO 594 WEDNESDAY FROM 597 LAST WEEK TRADERS SAID THE SLOW PACE OF GERMAN EASING AND THE SCANT INDICATION THAT THE FED WILL AGAIN RAISE INTEREST RATES HAVE COMBINED TO CAST A CLOUD OVER THE DOLLAR THE YEN IS WEAK BUT PEOPLE WHO GOT HAMMERED HOLDING ON TO LONG DOLLAR POSITIONS ARE LOOKING FOR ALTERNATIVES TO TRADING THE DOLLARYEN MR DONNEY SAID THAT LEAVES THE MARKYEN CROSS AS A PLAY HE SAID THE MARK WAS AT 6206 YEN IN LATE NEW YORK TRADING COMPARED WITH 6146 YEN LATE TUESDAY THE MOVE ABOVE 62 LOOKS LIKE A BREAKOUT PLAY TO THE UPSIDE MR DONNEY NOTED INDEED LATER YESTERDAY THE DOLLAR CONTINUED TO SINK AGAINST THE MARK WHEN IT BROKE BENEATH TECHNICAL SUPPORT OF 17040 MARKS SAID ANDREAS MANN A TRADER WITH COMMERZBANK IN NEW YORK THE DOLLAR SANK TO A NEW LOW OF 16980 MARKS IN EARLY AUSTRALASIAN DEALINGS ABOUT THE SAME TIME THE MARK ROSE TO 6229 YEN 9403100103 940310 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMAN CHANCELLOR HELMUT KOHL ASKED BRITAIN AND SPAIN TO MAKE CONCESSIONS ON VOTING RULES AND FISHING RIGHTS IN A STALEMATE THAT THREATENS THE EUROPEAN UNION'S PLANS TO ADD FOUR MEMBERS ON JAN 1 THE EUROPEAN PARLIAMENT COULD REJECT AN ENLARGEMENT PACKAGE WITH VOTING RULES MAKING IT HARDER TO ENACT EU LAWS EU OFFICIALS SOUGHT FLEXIBILITY BY ASSEMBLY MEMBERS TO APPROVE EXPANDING THE 12COUNTRY BLOC IF NEGOTIATIONS CAN BE WRAPPED UP NEXT WEEK PACTS HAVE BEEN SET WITH AUSTRIA FINLAND AND SWEDEN TALKS WITH NORWAY BROKE DOWN OVER DIFFERENCES WITH SPAIN ON FISHING RIGHTS AND THE VOTINGRIGHTS ISSUE BRITAIN BACKED BY SPAIN AND ITALY WANTS TO RETAIN THE ABILITY OF TWO LARGE COUNTRIES AND ONE SMALL NATION TO BLOCK EU LEGISLATION MR KOHL URGED BRITAIN TO ACCEPT A PROPOSAL BACKED BY MOST EU NATIONS TO ADJUST VOTING RULES TO ACCOUNT FOR MEMBERSHIP BY AUSTRIA FINLAND NORWAY AND SWEDEN AND HE SAID SPAIN SHOULD ACCEPT A COMPROMISE ON FISHING HIS HIGHLY UNUSUAL PUBLIC STATEMENT REFLECTS THE IMPORTANCE GERMANY PLACES ON ALLOWING THE FOUR WEALTHY STATES TO JOIN THE EU GUANGZHOU AIMS TO SLASH THE NUMBER OF BICYCLES IN THE SOUTHERN CHINESE CITY TO ONE MILLION FROM THREE MILLION BY THE YEAR 2010 AND TO CURB MOTORCYCLES CITY OFFICIALS BLAME BIKES FOR CLOGGING THE BOOMTOWN AND DEFYING LOGIC EMBRACE THE CENTRAL GOVERNMENT'S GOAL FOR INDIVIDUALS TO OWN CARS UNDER THE POLICY OF GETTING RICH WHILE BICYCLE USE IS WIDELY VIEWED AS A WAY TO HELP EASE ENVIRONMENTAL PROBLEMS ASIAN CITIES' NEW WEALTH HAS BEEN ACCOMPANIED BY CHRONIC TRAFFIC TIEUPS AND POLLUTION FROM POOR AUTOFUEL QUALITY THE PARAGUAYAN STATEOWNED AIRLINE STOPPED FLYING AND SAID IT WASN'T LIKELY TO RESUME OPERATIONS LINEAS AEREAS PARAGUAYAS WHICH HAS 41 MILLION OF DEBT SAID IT DIDN'T HAVE ENOUGH MONEY FOR JET FUEL IT HAS RUN A MONTHLY DEFICIT OF 13 MILLION FOR LAP TO REOPEN THE GOVERNMENT WOULD HAVE TO PAY THE CARRIER'S VENDORS 15 MILLION BUT PARAGUAY HAS INDICATED IT WANTS TO PRIVATIZE LAP THE INTERNATIONAL AIRLINE WITH ABOUT 300 EMPLOYEES AND A THREEPLANE FLEET FLEW TO MIAMI AND SOUTH AMERICAN CITIES AFTER DROPPING EUROPEAN ROUTES IN DECEMBER AS MEN HAVE INCREASINGLY MIGRATED FROM CHINA'S FARMS TO CITIES FOR JOBS WOMEN HANDLE TWOTHIRDS OF THE COUNTRY'S AGRICULTURAL PRODUCTION THE OFFICIAL CHINA DAILY SAID WOMEN ACCOUNT FOR 70 OF THE RURAL LABOR FORCE AND THEIR NUMBERS ARE EXPECTED TO RISE TO 185 MILLION OR 77 IN THE YEAR 2000 WHILE THE NUMBER OF MEN FALLS TO 55 MILLION DESPITE LITERACY AND HEALTHCARE IMPROVEMENTS RURALWOMEN ARE LESS MOBILE AND ARE PAID 22 LESS ON AVERAGE THAN MEN EVEN SO AS ECONOMIC REFORMS EXPANDED OPPORTUNITIES MANY FEMALE FARMHANDS HAVE TAKEN JOBS IN TOWNSHIP ENTERPRISES WHERE 50 MILLION WOMEN ACCOUNT FOR A THIRD OF THOSE EMPLOYEES FACED WITH A CHALLENGE TO HIS GOVERNMENT SLOVAKIAN PRIME MINISTER VLADIMIR MECIAR HAS SOLD OFF CHUNKS OF 29 STATEOWNED COMPANIES BUT DISCLOSED LITTLE ABOUT THE BUYERS THIS PROMPTED CORRUPTION ALLEGATIONS BUT HAVING ESSENTIALLY SCRAPPED A COUPONPRIVATIZATION PROGRAM THE SLOVAKS HAVEN'T FOUND AN ALTERNATIVE PARLIAMENT HAS BEEN DEADLOCKED FOR MONTHS OVER CONTROL OF PRIVATIZATIONS AS A RESULT SLOVAKIA'S ECONOMIC TRANSITION HAS GROUND TO A HALT WITH JUST 121 FIRMS HAVING BEEN SOLD TO PRIVATE OWNERS SINCE MR MECIAR'S ELECTION IN JUNE 1992 THE WORLD BANK DANGLING AS BAIT A LOAN TO SERVICE BULGARIA'S FOREIGN DEBT URGED THE GOVERNMENT TO ACCELERATE PRIVATIZATIONS TO QUALIFY FOR THE CREDIT STATE RADIO SAID THE WORLD BANK IS CONSIDERING REQUIRING BULGARIA TO SELL OFF 70 STATERUN ENTERPRISES AND TO LIQUIDATE FIVE INSOLVENT STATE COMPANIES BULGARIA MUST MAKE MONTHLY PAYMENTS OF 10 MILLION IN INTEREST TO FOREIGN CREDITORS AND A SINGLE PAYMENT OF 865 MILLION IN PRINCIPAL AS PART OF A RESCHEDULING OF ITS COMMERCIAL DEBT RUSSIA'S AMBITIOUS PRIVATIZATION PROGRAM HAS BEGUN TO CHANGE THE WAY FORMER STATE COMPANIES OPERATE AN OFFICIAL SAID DECLARING RESTRUCTURING HAS STARTED MAXIM BOIKO DIRECTOR OF THE GOVERNMENT'S RUSSIAN PRIVATIZATION CENTER WHICH COORDINATES FOREIGN TECHNICAL ASSISTANCE SAID A SURVEY OF PRIVATIZED FIRMS IN THE MOSCOW AND VLADIMIR AREAS FOUND THAT IN THE PAST YEAR 60 HAVE CHANGED THEIR RANGE OF PRODUCTS AND FIRED EMPLOYEES THE GOVERNMENT IS DEVELOPING PROGRAMS TO HELP THE FIRMS FIND INVESTORS AND ADAPT TO THE MARKET IT ALSO IS SETTING UP A CONSULTING NETWORK ON TOPICS SUCH AS MARKETING AND MANAGEMENT ALMOST 10000 MIDSIZE AND LARGE ENTERPRISES HAVE BEEN SOLD OFF WITH AN ADDITIONAL 4000 TO SHIFT TO PRIVATE HANDS BY MIDSUMMER WHEN MR BOIKO SAID 70 OF WORKERS WILL BE IN THE PRIVATE SECTOR KUWAIT'S EMIR DONATED 2 MILLION TO BUILD AN ISLAMIC SCHOOL IN NEW YORK BERMUDA A BRITISH COLONY SINCE 1612 ADVISED QUEEN ELIZABETH II THAT IT IS CONSIDERING INDEPENDENCE THE MIDATLANTIC RESORT ISLAND WHERE TWOTHIRDS OF THE 60000 RESIDENTS ARE OF AFRICAN DESCENT HAS THE WORLD'S THIRDHIGHEST PERCAPITA INCOME AFTER SWITZERLAND AND LUXEMBOURG 9403100102 940310 INTERNATIONAL NIXON UPSETS YELTSIN BY MEETING FIRST WITH TWO OF RUSSIAN PRESIDENT'S FOES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ON MONDAY FORMER PRESIDENT RICHARD NIXON MET WITH FORMER RUSSIAN VICE PRESIDENT ALEXANDER RUTSKOI WHO WAS RELEASED RECENTLY FROM PRISON AFTER LEADING THE ARMED PARLIAMENTARY REBELLION AGAINST PRESIDENT BORIS YELTSIN LAST OCTOBER MR RUTSKOI HOPES TO RUN FOR PRESIDENT ON TUESDAY MR NIXON MET WITH COMMUNIST PARTY CHIEF GENNADY ZYUGANOV YESTERDAY MR YELTSIN CANCELED HIS PLANS TO MEET WITH MR NIXON HE WAS COMING HERE TO SEE ME COMPLAINED MR YELTSIN SPEAKING TO THE PRESS DURING A WREATHLAYING CEREMONY AT THE KREMLIN INSTEAD SAID MR YELTSIN MR NIXON CAME TO RUSSIA AND BEGAN LOOKING FOR SUCH DARK SPOTS AS MESSRS RUTSKOI AND ZYUGANOV AFTER THIS MR YELTSIN ADDED NO ONE IN THE RUSSIAN GOVERNMENT WOULD MEET WITH MR NIXON RUSSIA IS STILL A GREAT COUNTRY MR YELTSIN SAID AND JUST TO PLAY WITH IT LIKE THIS TODAY I WANT THIS AND TOMORROW SOMETHING ELSE WON'T GO EITHER OTHER MEMBERS OF MR YELTSIN'S GOVERNMENT ALSO SCRATCHED MR NIXON FROM THEIR SCHEDULES INCLUDING PRIME MINISTER VIKTOR CHERNOMYRDIN AND DEFENSE MINISTER PAVEL GRACHEV THE RUSSIAN GOVERNMENT ALSO ABRUPTLY WITHDREW A STATE SECURITY CAR AND BODYGUARDS THAT HAD BEEN PROVIDED FOR MR NIXON'S PRIVATE FACTFINDING VISIT MR NIXON WASN'T AVAILABLE TO COMMENT BUT ONE OF HIS ADVISERS ON THIS TRIP DMITRI SIMES AT A NEWS CONFERENCE YESTERDAY DESCRIBED MR NIXON'S REACTION AS PUZZLED AND DISAPPOINTED MR SIMES ADDED THE TRIP IS NOT CANCELED WE WILL CONTINUE WITH IT MR SIMES A SCHOLAR AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE ALSO SAID HE WAS SURPRISED THAT MR YELTSIN COULD NOT FIND ANYONE ELSE BUT AN 81YEAROLD EXPRESIDENT WHO IS HIS FRIEND AND RUSSIA'S FRIEND TO REASSERT HIS MACHO AND TO TELL US THAT RUSSIA IS A GREAT COUNTRY ADDING SIGNIFICANCE TO THE INCIDENT IS MR NIXON'S ROLE AS AN UNOFFICIAL ENVOY OF THE CLINTON ADMINISTRATION BEFORE COMING TO RUSSIA MR NIXON BRIEFED MR CLINTON ON HIS PLANS AND COMMENTING ON THE SUDDEN SOURING OF MR NIXON'S TRIP MR CLINTON SAID I'D BE INTERESTED TO HEAR HIS REPORTS WHEN HE GETS BACK DURING A SUMMIT VISIT TO MOSCOW IN JANUARY MR CLINTON TRIED TO AVOID ANY SIMILAR ENTANGLEMENT IN RUSSIA'S DOMESTIC SPATS BY STAYING CLEAR OF THE COUNTRY'S MOST NOTORIOUS PARLIAMENTARIAN VLADIMIR ZHIRINOVSKY ONE ADVANTAGE OF MR NIXON'S PRIVATE VISIT WAS TO HAVE BEEN THAT AS AN UNOFFICIAL CALLER ON RUSSIA'S LEADING POLITICIANS HE WOULD HAVE ROOM TO PRACTICE HIS OLD DIPLOMATIC ARTS SOUNDING OUT NOT ONLY MR YELTSIN'S CIRCLE BUT ALSO THE EXTREMISTS AS FOR MR NIXON'S INTEREST IN MEETING WITH MR ZHIRINOVSKY AN AIDE TO MR NIXON SAID LAST NIGHT THE REST OF OUR PROGRAM IS UNCERTAIN AT THIS TIME 9403100101 940310 MARKETING & MEDIA COURT RULES AGAINST MIRROR GROUP'S CLAIM FOR DAILY NEWS ASSETS NEW YORK A US BANKRUPTCY COURT JUDGE RULED THAT MIRROR GROUP NEWSPAPERS PLC A FORMER ARM OF THE ROBERT MAXWELL MEDIA EMPIRE CANNOT CLAIM ASSETS OF THE NEW YORK DAILY NEWS IN ITS ATTEMPT TO RECOVER FUNDS LOOTED BY THE LATE MEDIA BARON FEDERAL JUDGE TINA L BROZMAN ORDERED EXPUNGED THE 95 MILLION MIRROR GROUP CLAIM ON MAXWELL NEWSPAPERS INC THE HOLDING COMPANY FORMED BY MR MAXWELL TO OPERATE THE TABLOID DAILY NEWS MR MAXWELL DIED MYSTERIOUSLY IN NOVEMBER 1991 AT SEA AFTER WHICH HIS EMPIRE UNRAVELED AMID LOSSES AND DISCOVERIES OF FINANCIAL IRREGULARITIES INCLUDING HUNDREDS OF MILLIONS IN MISSING PENSIONFUND MONEY THE RULING ALLOWS MAXWELL NEWSPAPERS TO DISTRIBUTE A LARGE PAYOUT TO US CREDITORS AN ACTION HELD UP BY THE MIRROR GROUP CLAIM ACCORDING TO MARC KIRSCHNER A PARTNER OF JONES DAY REAVIS & POGUE WHICH REPRESENTS MAXWELL NEWSPAPERS INC MAXWELL NEWSPAPERS FILED FOR FEDERAL BANKRUPTCY PROTECTION IN 1991 DURING BANKRUPTCY REAL ESTATE DEVELOPER MORTIMER ZUCKERMAN BOUGHT THE PAPER MAXWELL NEWSPAPERS EMERGED FROM BANKRUPTCY LAST JUNE AND HAS SINCE BEEN LIQUIDATED THE DISTRIBUTION OF MOST OF THE MONEY TO CREDITORS IS EXPECTED WITHIN THE NEXT 60 DAYS SAID MR KIRSCHNER THERE ARE MORE THAN 1800 INDIVIDUAL OR CORPORATE CREDITORS WITH ALLOWED CLAIMS JUDGE BROZMAN WHILE NOTING THE EXTENT OF THE MAXWELLS' SCHEME RULED THAT MAXWELL NEWSPAPERS DERIVED NO BENEFIT AND RETAINED NO FRUIT OF THE MAXWELLS' FRAUD JUDGE BROZMAN CONCLUDED IN HER RULING THAT MR MAXWELL'S INTEREST IN PURCHASING AND OPERATING THE DAILY NEWS WAS TO KEEP THE NEWSPAPER ALIVE SO THAT MAXWELL NEWSPAPERS COULD FUNCTION AS A MONEYLAUNDERING DEVICE FOR HIS OWN PURPOSES 9403100100 940310 WHO'S NEWS TOMMY HILFIGER PICKS MARGOLIS FOR TWO POSTS NEW YORK AS PART OF A REALIGNMENT OF SENIOR MANAGEMENT TOMMY HILFIGER CORP NAMED A FORMER EXECUTIVE OF LIZ CLAIBORNE INC AS VICE CHAIRMAN AND PRESIDENT JAY MARGOLIS 45 YEARS OLD RESIGNED AS CHAIRMAN OF LIZ CLAIBORNE LAST YEAR TO JOIN HILFIGER AS A DIRECTOR AND TO JOIN THE LONDON JEANSWEAR MAKER PEPE GROUP PLC AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS US UNIT BOTH WERE FOUNDED BY INVESTORS SILAS CHOU AND LAWRENCE STROLL MR CHOU IS THE CHAIRMAN OF BOTH HILFIGER AND PEPE IN HIS NEW JOB AT HILFIGER MR MARGOLIS WILL BE AN INTEGRAL PART OF PLANNING THE COMPANY'S GROWTH IN LICENSING RETAILING AND IN PARTICULAR THE DEVELOPMENT OF THE COMPANY'S WOMEN'S LINE ACCORDING TO A STATEMENT FROM MR CHOU MR MARGOLIS RESIGNED HIS POSITIONS AT PEPE JEANS USA TO FOCUS ON TOMMY HILFIGER HE WILL BE SUCCEEDED AT PEPE BY EDWIN LEWIS 43 WHO RESIGNED AS CHIEF EXECUTIVE OFFICER OF HILFIGER MR LEWIS WHO HAS BECOME AN INVESTOR IN PEPE WAS ALSO NAMED A VICE CHAIRMAN AT HILFIGER JOEL HOROWITZ 43 WAS PROMOTED TO CHIEF EXECUTIVE OFFICER OF HILFIGER SUCCEEDING MR LEWIS MR HOROWITZ WAS FORMERLY HILFIGER'S PRESIDENT AND CHIEF OPERATING OFFICER NO ONE WILL BE NAMED TO THE POSITION OF CHIEF OPERATING OFFICER THE COMPANY SAID AND TOMMY HILFIGER 42 WAS PROMOTED TO HONORARY CHAIRMAN FROM THE POSITION OF VICE CHAIRMAN MR HILFIGER CONTINUES TO BE THE COMPANY'S PRINCIPAL DESIGNER AND HE'LL CONTINUE TO DIRECT ALL ASPECTS OF THE COMPANY'S DESIGN AND MARKETING 9403100099 940310 THOMSON ADVISORY AGREES TO MERGE WITH PIMCO UNIT OF PACIFIC MUTUAL LIFE BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THOMSON ADVISORY GROUP LP AGREED IN PRINCIPLE TO MERGE WITH THE MUCHLARGER PACIFIC INVESTMENT MANAGEMENT CO CREATING ONE OF THE LARGEST PUBLICLY TRADED MONEYMANAGEMENT FIRMS IN THE US THE ACCORD SENT THOMSON STOCK SURGING 350 TO 3825 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MERGER CAN'T BE EASILY VALUED BECAUSE THE COMBINED CONCERN WILL HAVE TWO NEW SEPARATE CLASSES OF UNITS BUT IF BOTH CLASSES TRADED AT THE SAME LEVEL THOMSON'S CLOSING PRICE ON THE BIG BOARD YESTERDAY THE MERGED ENTITY WOULD BE VALUED AT MORE THAN 13 BILLION THE MERGER WILL PROPEL PIMCO ONE OF THE TOP BOND MANAGERS IN THE COUNTRY AND A SUBSIDIARY OF PACIFIC MUTUAL LIFE INSURANCE CO INTO THE STOCKMANAGEMENT ARENA CURRENTLY INHABITED BY THOMSON BASED IN STAMFORD CONN THE MERGED FIRM TO BE CALLED PIMCO ADVISORS LP WILL MANAGE ABOUT 70 BILLION INCLUDING MORE THAN 15 BILLION IN MUTUALFUND MONEY THE MERGER IS NOTABLE IN PART BECAUSE PIMCO HAS THE FAMOUS BOND MANAGER WILLIAM GROSS IN SIZE THE FIRM WILL LEAP PAST SUCH PUBLICLY TRADED FIRMS AS T ROWE PRICE ASSOCIATES INC WITH 54 BILLION IN ASSETS ALTHOUGH IT WILL BE SMALLER THAN SUCH FIRMS AS FRANKLIN RESOURCES WITH 114 BILLION THE COMBINED FIRM WILL CONTINUE TO OPERATE AS A MASTER LIMITED PARTNERSHIP THE STRUCTURE THOMSON HAS USED PARTNERSHIP INVESTORS GAIN TAX BENEFITS BECAUSE THE EARNINGS AREN'T TAXED AT THE PARTNERSHIP LEVEL THUS ESCAPING DOUBLE TAXATION THE MERGER WILL ALLOW BROKERS TO SELL BOND MUTUAL FUNDS MANAGED BY NEWPORT BEACH CALIFBASED PIMCO THROUGH DISTRIBUTION NETWORKS ALREADY ESTABLISHED BY THOMSON PIMCO'S MUTUAL FUNDS ARE GEARED TOWARD LARGE INSTITUTIONAL INVESTORS BUT SMALL INVESTORS CAN BUY SOME OF THEM IN SMALLER CHUNKS THROUGH CERTAIN DISCOUNT BROKERS THOMSON USED TO BE THE MONEYMANAGEMENT ARM OF THE FORMER THOMSON MCKINNON SECURITIES WHOSE BROKERAGE OFFICES WERE SOLD OFF PIMCO AND THE OTHER PACIFIC MUTUAL MANAGERS OVERSEE ABOUT 59 BILLION IN ASSETS THOMSON MANAGES 116 BILLION THE RISE IN THOMSON'S PRICE IN TRADING YESTERDAY REFLECTS THE AGREEMENT'S PLAN TO PAY A HIGHER DISTRIBUTION TO EXISTING UNIT HOLDERS THE TENTATIVE AGREEMENT WILL RECLASSIFY THE 43 MILLION THOMSON UNITS HELD BY THE PUBLIC INTO CLASS A UNITS ENTITLED TO A PRIORITY ANNUAL DISTRIBUTION OF 375 A UNIT THROUGH 1997 AS COMPARED WITH THE 260 FOR THE FOUR QUARTERS OF 1993 THOMSON SAID PACIFIC MUTUAL AND MANAGERS OF ITS INVESTMENT MANAGEMENT BUSINESSES WILL ACQUIRE 1235 MILLION CLASS A UNITS AND 1235 MILLION CLASS B UNITS ON DEC 31 1997 THE UNITS WILL BECOME A SINGLE CLASS THOMSON ADVISORY SAID IT WON'T LOSE ITS MASTER LIMITED PARTNERSHIP STATUS FOR FEDERAL INCOMETAX PURPOSES PACIFIC MUTUAL LIFE INSURANCE THE PARENT OF PIMCO AND SEVERAL OTHER BUSINESSES TO BE MERGED WITH THOMSON WILL BECOME A BIG OWNER OF THE ENLARGED FIRM PACIFIC MUTUAL AND MANAGERS OF ITS INVESTMENT SUBSIDIARIES WILL OWN 29 MILLION OUT OF 35 MILLION PARTNERSHIP UNITS OUTSTANDING OF PIMCO ADVISORS LP INCLUDED IN THE 29 MILLION UNITS ARE ABOUT FOUR MILLION THAT ARE BEING BOUGHT FOR 140 MILLION FROM TWO PRIVATE INVESTORS IN THOMSON TA ASSOCIATES AND GREYLOCK MANAGEMENT CORP THIS ISN'T THE FIRST TIME THAT A MUTUALINSURANCE COMPANY HAS BROUGHT ITS INVESTMENT MANAGEMENT SUBSIDIARY PUBLIC BY MERGING THE OPERATION WITH A SMALLER PUBLICLY TRADED MONEYMANAGEMENT FIRM LAST YEAR NEW ENGLAND MUTUAL LIFE INSURANCE CO MERGED ITS INVESTMENT DIVISION WITH PUBLICLY TRADED REICH & TANG LP SUCH A MOVE CAN BOOST A MUTUAL INSURANCE COMPANY'S CREDIT RATINGS AND SOMETIMES ITS CAPITAL BECAUSE THE PUBLIC MARKET FOR INVESTMENT COMPANY STOCKS IS HIGHER THAN THE VALUE ON THE INSURER'S BOOKS WILLIAM GROSS MANAGING DIRECTOR OF PIMCO AND A HIGHLY REGARDED BOND MANAGER SAID IN AN INTERVIEW THAT PIMCO WOULD RUN MOST OF THE BOND FUNDS AT THOMSON BOTH PIMCO AND THOMSON SAID THAT IT HASN'T BEEN DECIDED YET WHETHER THE THOMSON FUNDS WILL TAKE ON THE PIMCO NAME THE COMPANIES SAID WILLIAM D CVENGROS VICE CHAIRMAN OF PACIFIC MUTUAL WILL LEAVE THAT POST TO BECOME CHIEF EXECUTIVE OF PIMCO ADVISORS LP THEY SAID SUPERVISION OF OPERATIONS WOULD BE THE FUNCTION OF A SPECIAL OPERATING BOARD COMPOSED PRIMARILY OF CURRENT PIMCO MANAGEMENT AS WELL AS REPRESENTATIVES FROM THE OTHER INVESTMENT OPERATIONS ONE OF THE THOMSON FUNDS THOMSON OPPORTUNITY HAS BEEN A TOP PERFORMER THE FUND'S B SHARES HAD A TOTAL RETURN INCLUDING DIVIDENDS AND PRICE GAINS OF NEARLY 34 IN THE 12 MONTHS THROUGH MARCH 4 ACCORDING TO LIPPER ANALYTICAL SERVICES INC IT GAINED ABOUT 28 A YEAR IN THE FIVE YEARS THROUGH MARCH 4 COMPARED WITH JUST OVER 15 FOR OTHER SIMILAR STOCK FUNDS PIMCO TOTAL RETURN A FUND MANAGED BY MR GROSS HAD A TOTAL RETURN OF 83 IN THE 12 MONTHS THROUGH FEB 28 COMPARED WITH 498 ON AVERAGE FOR SIMILAR BOND FUNDS IN THE FIVE YEARS THE ANNUAL RETURN OF MORE THAN 12 BEAT THE AVERAGE OF ABOUT 10 ON COMPARABLE FUNDS 9403100098 940310 POLITICS & POLICY ALTMAN ADMITS TO A PIECE OF AWFUL JUDGMENT' IN ARRANGING MEETING AT WHITE HOUSE ON RTC BY DAVID WESSEL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEPUTY TREASURY SECRETARY ROGER ALTMAN THE ACTING CHIEF OF THE RESOLUTION TRUST CORP THIS WEEK OPENED A MEETING OF THE AGENCY'S OVERSIGHT BOARD BY SAYING USUALLY I SAY HOW HAPPY I AM TO BE HERE THAT'S A LITTLE HARDER RIGHT NOW FOR THE PAST YEAR PRESIDENT CLINTON'S COLLEGE CHUM HAS BEEN WIDELY CONSIDERED TO BE TREASURY SECRETARYINWAITING BUT NEXT WEEK HE IS SCHEDULED TO APPEAR BEFORE A GRAND JURY LOOKING INTO THE WHITEWATER AFFAIR TO ANSWER THE OLD WATERGATE QUESTION WHAT DID HE KNOW AND WHEN DID HE KNOW IT AND JUST AS IMPORTANT WHAT DID HE DO ABOUT WHAT HE KNEW IN AN INTERVIEW MR ALTMAN PLEADS GUILTY TO A PIECE OF AWFUL JUDGMENT ARRANGING A FEB 2 MEETING AT THE WHITE HOUSE AT WHICH HE SAYS HE GAVE THE WHITE HOUSE A HEADSUP ON RTC PROCEDURES BUT NOTHING MORE BUT REPUBLICANS ARE OPENLY SKEPTICAL THAT THAT IS ALL MR ALTMAN DID IT DOES NOT MEET THE TEST OF REASONABLENESS SAYS NEW YORK SEN AL D'AMATO IF THEY JUST NEEDED INFORMATION HE COULD HAVE SENT A PERFUNCTORY LETTER HE CHARGES THAT MR ALTMAN'S BRIEFING WAS FOR POLITICAL CONSIDERATIONS EITHER TO BOOST HIMSELF OR HELP THE WHITE HOUSE STRATEGY IN DEALING WITH THE CRISIS ALL THIS IS DEEPLY EMBARRASSING TO THE 47YEAROLD FORMER CARTER ADMINISTRATION OFFICIAL AND INVESTMENT BANKER WHO UNTIL NOW HAS ENJOYED A GOLDEN REPUTATION AS A SHARP ECONOMIC MIND WITH CONSIDERABLE POLITICAL SAVVY THIS IS A PRETTY TRAUMATIZING EXPERIENCE SAYS MR ALTMAN IT'S VERY DIFFICULT FOR YOUR FAMILY MY CHILDREN AGES 10 EIGHT AND FIVE ARE OLD ENOUGH TO READ THE NEWSPAPER AND YOU HAVE TO EXPLAIN IT TO THEM MORE BROADLY IT POINTS UP SOME OF THE RISKS IN MR CLINTON'S HABIT OF APPOINTING SUCH OLD FRIENDS AS MR ALTMAN DEPUTY SECRETARY OF STATE STROBE TALBOTT AND HEALTHCARE GURU IRA MAGAZINER TO HIGHLEVEL JOBS THESE PEOPLE WILL FEEL THEY HAVE A SPECIAL RELATIONSHIP SAYS FRED GREENSTEIN A PRESIDENTIAL SCHOLAR AT PRINCETON UNIVERSITY IT CLOUDS THE LINES OF AUTHORITY BROOKINGS INSTITUTION POLITICAL SCIENTIST THOMAS MANN ADDS THAT THE INHERENT CONFLICT BETWEEN CAREER CIVIL SERVANTS AND POLITICAL APPOINTEES IS COMPLICATED FURTHER WHEN THERE IS A SENSE OF PERSONAL RELATIONSHIPS IN MR ALTMAN'S CASE THE PROBLEMS WERE FURTHER EXACERBATED BY HIS DUAL ROLE AS BOTH DEPUTY TREASURY SECRETARY AND ACTING CHIEF OF THE RTC THE AGENCY FORMED PARTLY TO GO AFTER THOSE WHO LOOTED THE SAVINGS AND LOAN INDUSTRY THE BUSH TREASURY EAGER TO AVOID GETTING SUCKED FURTHER INTO THE S&L MIRE CONVINCED CONGRESS TO ESTABLISH THE RTC AS AN INDEPENDENT ENTITY WITH AN OVERSIGHT BOARD ON WHICH THE TREASURY SECRETARY SITS BUT MR ALTMAN'S DUAL ROLE OBLITERATED THE DISTINCTION MR ALTMAN DIDN'T WANT THE RTC JOB HE HUNG MR CLINTON'S MARCH 1993 LETTER OF APPOINTMENT IN THE SMALL BATHROOM OFF HIS OFFICE NOW HE SAYS HINDSIGHT IS ALWAYS PERFECT BUT HOLDING TWO JOBS IS PROBABLY A MISTAKE ALTHOUGH HE IS TREASURY SECRETARY LLOYD BENTSEN'S DEPUTY MR ALTMAN SPENDS SO MUCH TIME AT THE WHITE HOUSEHE IS THERE THREE TIMES A DAY BY HIS ACCOUNT THAT HE IS A DE FACTO MEMBER OF THE WHITE HOUSE STAFF HIS SUDDEN DECISION LAST WEEK TO ANNOUNCE THAT HE WAS RECUSING HIMSELF FROM ANY FURTHER INVOLVEMENT WITH THE ARKANSAS SAVINGSANDLOAN MATTER BOTH STARTLED AND ANGERED THE WHITE HOUSE WHICH AT THAT POINT WAS HOPING THAT THE WORST OF THE CONTROVERSY WAS PAST WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID THE PRESIDENT HAS FULL CONFIDENCE IN ROGER ALTMAN MR BENTSEN HASN'T ELABORATED ON A STATEMENT ISSUED WHILE HIS AIDES WERE HUDDLING ABOUT WHAT HE SHOULD SAY THAT HE DIDN'T KNOW ABOUT ANY OF THE MEETINGS HIS AIDES HAD WITH THE WHITE HOUSE MEANWHILE MR ALTMAN OFFERS THIS ACCOUNT OF HIS BEHAVIOR LAST FALL IN HIS CAPACITY AS ACTING HEAD OF THE RTC HE LEARNED THAT THE AGENCY WAS CONTEMPLATING REFERRING TO THE JUSTICE DEPARTMENT FOR POSSIBLE CRIMINAL PROSECUTION A CASE INVOLVING AN ARKANSAS THRIFT THAT MENTIONED BILL AND HILLARY RODHAM CLINTON HE DIDN'T TELL SECRETARY BENTSEN THE PRESIDENT OR THE FIRST LADY HE SAID IN THE INTERVIEW HE SAYS HE DIDN'T LEARN UNTIL LATE LAST WEEK THAT TREASURY GENERAL COUNSEL JEAN HANSON HAD WARNED WHITE HOUSE COUNSEL BERNARD NUSSBAUM ON SEPT 29 OF THE RTC'S PLAN TO SEEK A JUSTICE DEPARTMENT INVESTIGATION THE FORMAL REFERRAL WAS MADE OCT 8 THE FIRST PRESS REPORTS APPEARED OCT 31 NOR MR ALTMAN SAYS DID HE KNOW THAT TREASURY STAFF MET AGAIN WITH MR NUSSBAUM ON OCT 14 AMONG THE OTHER PARTICIPANTS AT THAT MEETING WAS MR BENTSEN'S CHIEF OF STAFF JOSH STEINER WHO UNTIL AUGUST HAD HELD THE SAME JOB FOR MR ALTMAN THIS YEAR MR ALTMAN DISCLOSED TO THE SENATE BANKING COMMITTEE LAST WEEK HE TOLD WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY THAT HE WANTED TO COME OVER TO EXPLAIN THE PROCEDURES THE RTC WOULD FOLLOW IN PURSUING A CIVIL CASE GIVEN THAT THE STATUTE OF LIMITATIONS WAS ABOUT TO EXPIRE WORKING FROM TALKING POINTS PREPARED BY MS HANSON WHO ACCOMPANIED HIM MR ALTMAN SAYS HE DID JUST THAT IN THE FEB 2 MEETING WITH MR NUSSBAUM DEPUTY CHIEF OF STAFF HAROLD ICKES AND MARGARET WILLIAMS MRS CLINTON'S CHIEF OF STAFF LESSONS I'D DESCRIBE IT AS A HEADSUP' AND A VERY STIFF CONVERSATION MR ALTMAN TOLD THE BANKING COMMITTEE LAST WEEK IN A SUBSEQUENT LETTER TO THE COMMITTEE HE SAID THERE WAS NO DISCUSSION WHATSOEVER ON THE SUBSTANCE THAT'S BECAUSE I HAVE NEVER HAD NOR HAVE ANY KNOWLEDGE OF THE SUBSTANCE MS HANSON WHO WORKED CLOSELY WITH MR ALTMAN OFTEN JOINING HIM FOR HIS TWICEAWEEK STAFF MEETINGS AT THE RTC SAT BEHIND MR ALTMAN AT THE BANKING COMMITTEE HEARING BUT HE SAYS SHE NEVER TOLD HIM THAT THERE HAD BEEN OTHER MEETINGS BETWEEN THE TREASURY AND THE WHITE HOUSE HE SAYS HE DIDN'T LEARN OF THEM UNTIL REPORTERS BEGAN INQUIRING LAST WEEK MS HANSON DIDN'T RETURN A REPORTER'S CALL ON THE MATTER THIS ISN'T THE FIRST TIME THE WHITE HOUSE HAS DABBLED IN A THRIFT ISSUE INVOLVING THE FIRST FAMILY IN A BOOK PUBLISHED LAST YEAR FORMER FEDERAL DEPOSIT INSURANCE CORP CHAIRMAN WILLIAM SEIDMAN RECOUNTED HOW DURING THE BUSH ADMINISTRATION THE FDIC'S CHIEF COUNSEL RELAYED TO THRIFT REGULATORS A QUESTION FROM WHITE HOUSE COUNSEL BOYDEN GRAY ABOUT WHETHER THERE WAS ANY WAY TO MOVE THE CASE AGAINST THE PRESIDENT'S SON NEIL BUSH THE DIRECTOR OF A FAILED COLORADO THRIFT FROM THE ADMINISTRATIVE PROCESS INTO THE COURTS AFTER REGULATORS COMPLAINED TO THE TREASURY INSPECTOR GENERAL THE FDIC OFFICIAL WAS REPRIMANDED AND HIS BONUS WITHHELD THE ENTIRE INCIDENT IS OF NO CONSEQUENCE MR SEIDMAN OBSERVED EXCEPT FOR WHAT IT CAN TEACH US ABOUT HOW WASHINGTON WORKS AND THE ILLADVISED KNEEJERK REPSONSE THAT IS TOO OFTEN CAUSED BY WHITE HOUSE REQUESTS MR ALTMAN SAYS HE HASN'T READ THE SEIDMAN BOOK PAULETTE THOMAS CONTRIBUTED TO THIS ARTICLE 9403100097 940310 TECHNOLOGY AMERITECH IS FORMING VENTURE TO LET COMPUTER USERS GET GOVERNMENT DATA BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL AMERITECH CORP WILL FORM A JOINT VENTURE WITH A CANADIAN COMPANY TO BRING THE INTERACTIVE AGE TO THE HALLS OF GOVERNMENT AIMING EVENTUALLY TO LET PEOPLE REGISTER CARS AND APPLY FOR MARRIAGE LICENSES WITH THE CLICK OF A BUTTON THE VENTURE HOPES TO DEVELOP SERVICES THAT WILL OVER TIME LET COMPUTER USERS ACROSS THE US USE PHONE LINES TO GET EASY QUICK ACCESS TO AN ARRAY OF COMPUTERIZED INFORMATION AT ALL LEVELS OF GOVERNMENT THE FIRST SERVICES ARE EXPECTED TO BE AVAILABLE BY THIS SUMMER ALTHOUGH THEY WON'T YET OFFER THE ABILITY TO EXECUTE TRANSACTIONS MORE SOPHISTICATED SERVICES ARE PLANNED FOR YEAR END EVENTUALLY AMERITECH HOPES TO SELL ITS SERVICES NATIONWIDE MOVING INTO MAJOR MARKETS INCLUDING LOS ANGELES AND NEW YORK AFTER STARTING OUT WITH GOVERNMENT OFFICES IN ITS OWN FIVESTATE SERVICE AREA IN THE MIDWEST AMERITECH THE CHICAGOBASED REGIONAL TELEPHONE COMPANY WILL BANKROLL THE NEW VENTURE WITH BRITISH COLUMBIA SYSTEMS CORP A GOVERNMENTOWNED INFORMATIONSERVICES COMPANY BASED IN VANCOUVER THE NEW COMPANY CALLED AMERITECH INFORMATION ACCESS LTD IS SCHEDULED TO BE UNVEILED TODAY A NUMBER OF GOVERNMENT DATABASES ARE AVAILABLE OVER THE INTERNET AND SOME COMPANIES ALREADY OFFER ACCESS TO GOVERNMENT LISTINGS LIMITED TO ONE AREA OR STATE BUT AMERITECH IS ONE OF THE FIRST SO FAR TO UNDERTAKE THE ENORMOUS CHALLENGE OF SETTING UP A NATIONAL SERVICE COVERING EVERY CITY COUNTY AND STATE ENTITY AS WELL AS FEDERAL OFFICES WE'VE NOT FOUND ANYBODY WITH ANYTHING QUITE LIKE IT SAID LANA PORTER AN AMERITECH VICE PRESIDENT AND GENERAL MANAGER OF THE NEW COMPANY FOR GOOD REASON PERHAPS TRYING TO WORK WITH THE HUNDREDS OF GOVERNMENT OFFICES WILL BE COMPLICATED AT BEST AMERITECH HAS BEGUN TALKS WITH A FEW OUTLETS BUT HAS YET TO SIGN ITS FIRST DEAL AND THERE CONTINUES TO BE RESISTANCE TO PAYING FOR PUBLIC INFORMATION THAT IS FREE TO ANYONE WHO DOESN'T MIND TAKING THE TIME TO FERRET IT OUT MANUALLY A LOT OF PEOPLE DON'T LIKE THE IDEA OF PAYING FOR PUBLIC INFORMATION EVEN THOUGH IT MIGHT BE A LOT EASIER TO PAY A FEE AND GET IT ELECTRONICALLY SAID PETER KRASILOVSKY A SENIOR ANALYST WITH ARLEN COMMUNICATIONS INC A BETHESDA MDBASED RESEARCH COMPANY AMERITECH'S NEW ONLINE SERVICES TO BE SOLD AND PRICED BY INDIVIDUAL GOVERNMENT OFFICES WOULD MAKE EXISTING GOVERNMENT DATABASES AVAILABLE TO ANYONE WITH A PERSONAL COMPUTER AND A MODEM AMERITECH WOULD RECEIVE A PERTRANSACTION FEE AND ASSIST IN MARKETING THE NEW SERVICES ARE BEING BUILT AROUND A SOFTWARE PROGRAM DEVELOPED BY BRITISH COLUMBIA SYSTEMS WHICH HAS BEEN USED SUCCESSFULLY IN BRITISH COLUMBIA TO OFFER READY ACCESS TO LOCAL REAL ESTATE LISTINGS 9403100096 940310 COMMODITIES PETROLEUM PRICES POST MODEST GAINS ON EVIDENCE OF MORE REDUCTIONS IN WORLDWIDE INVENTORIES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL MORE EVIDENCE OF A SHRINKING OF THE WORLD OIL GLUT HELPED TO PUSH PETROLEUM PRICES HIGHER THE GAINS WERE RELATIVELY MODEST BUT THEY WERE IN SHARP CONTRAST TO THE PLUNGE IN PRICES EARLIER THIS WEEK THAT SELLOFF HAD BEEN TRIGGERED BY THE OILMARKET'S DISAPPOINTMENT OVER THE FAILURE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO SIGNAL WHETHER IT WILL CUT SECONDQUARTER OUTPUT ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR APRIL DELIVERY WHICH HAD DROPPED 40 CENTS A BARREL ON MONDAY ROSE EIGHT CENTS YESTERDAY TO SETTLE AT 1418 A BARREL THE RISE IN NEW YORK CONTRIBUTED TO PRICE ADVANCES IN CRUDEOIL FUTURES IN LONDON TRADERS SAID ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FOR APRIL DELIVERY CLOSED 13 CENTS HIGHER AT 1320 A BARREL THE INCREASES CAME AFTER INDUSTRY AND GOVERNMENT REPORTS OF FURTHER REDUCTIONS IN PETROLEUM INVENTORIES IN THE US AS WELL AS IN THE OTHER MAJOR OILCONSUMING REGIONS OF EUROPE AND ASIA BASICALLY THIS CONFIRMS THE COLD WEATHER HAS WIPED OUT THE BIG INVENTORY OVERHANG SAID JOHN SAUCER ENERGY ANALYST AT SMITH BARNEY SHEARSON IN THE US STATISTICS RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE AND YESTERDAY BY THE DEPARTMENT OF ENERGY SHOWED MAJOR DECLINES LAST WEEK IN INVENTORIES OF LEADING FUELS SUCH AS DISTILLATES WHICH INCLUDE HOMEHEATING OIL AND GASOLINE ACCORDING TO THE API DISTILLATE STOCKS DECLINED 36 MILLION BARRELS WHILE GASOLINE INVENTORIES WERE DOWN 27 MILLION ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO PROVIDES ANALYSIS OF THE API FIGURES TO HIS CLIENTS SAID THE LATEST STATISTICS UNDERSCORE THIS WINTER'S INCREASED USE OF PETROLEUM IN THE US DEMAND IN THE US BASED ON THE API STATISTICS WAS UP 51 IN THE LATEST FOUR WEEKS FROM THE COMPARABLE YEAREARLIER PERIOD MR BOSLEGO SAID THE INTERNATIONAL ENERGY AGENCY ALSO ISSUED ITS MONTHLY OIL MARKET REPORT YESTERDAY AND IT SHOWED SIGNIFICANT REDUCTIONS IN WORLD OIL INVENTORIES IN RECENT WEEKS THE IEA WHICH REPRESENTS THE MEMBERS OF THE ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT SAID ITS PRELIMINARY ESTIMATE OF PETROLEUM INVENTORIES AT THE END OF JANUARY IN THESE INDUSTRIAL NATIONS WAS 5 LOWER THAN THAT OF A YEAR EARLIER ALSO THE IEA REVISED UPWARD ITS ESTIMATE OF DECEMBER DRAWDOWNS OF INVENTORIES IN THE OECD NATIONS TO THREE MILLION BARRELS A DAY FROM THE 17 MILLION A DAY ESTIMATED EARLIER THE IEA FIGURES SUGGEST HOWEVER THAT OPEC STILL NEEDS TO CUT CRUDE PRODUCTION AT ITS MARCH 25 MEETING IF WORLD OIL SUPPLIES AND DEMAND ARE TO BE BALANCED IN THE SECOND QUARTER CURRENTLY ACCORDING TO THE IEA AND INDUSTRY ESTIMATES OPEC IS PRODUCING SOME 248 MILLION BARRELS A DAY THAT IS ABOVE THE PREDICTIONS OF SECONDQUARTER DEMAND FOR OPEC OIL OF 24 MILLION BARRELS A DAY OR LESS THE IEA REPORT MAY HAVE GIVEN OPEC A LITTLE MORE BREATHING ROOM BUT THIS MARKET IS GOING TO REMAIN JITTERY SAID MR SAUCER OF SMITH BARNEY SHEARSON IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS PLATINUMFUTURES PRICES ROSE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY WAS UP 250 TO 397 AN OUNCE THROUGHOUT 1993 PLATINUM TRADED IN A RANGE OF ABOUT 330 TO 420 AN OUNCE BUT AYRTON METALS LTD A LONDON PLATINUM MERCHANT IS FORECASTING THAT PLATINUM'S PRICE RANGE WILL RISE THIS YEAR THE PLATINUM MERCHANT WHICH IS OWNED BY IMPALA PLATINUM A SOUTH AFRICAN PRODUCER SAYS THAT HEALTHY AUTO SALES IN THE US AND STRONG DEMAND FROM THE JAPANESE JEWELRY INDUSTRY WILL HELP TO SUPPORT PRICES GRAINS AND SOYBEANS SOYBEANFUTURES PRICES ROSE ON NEWS REPORTS SUGGESTING THAT SOME OF BRAZIL'S SOYBEANS MAY BE CONTAMINATED WITH FUNGUS AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR JULY DELIVERY WERE UP 725 CENTS TO 67625 A BUSHEL NEWS REPORTS SAID FUNGUS HAD BEEN FOUND ON SOME SOYBEANS COMING OUT OF THE PARANA REGION OF BRAZIL WHICH IS THE SOUTH AMERICAN COUNTRY'S SECOND LARGEST SOYBEANPRODUCING STATE TRADERS INTERPRETED THE REPORTS AS BULLISH IN PART BECAUSE EXPECTATIONS OF RECORD PRODUCTION OF SOYBEANS IN BRAZIL THIS YEAR HAS DEPRESSED FUTURES PRICES LATELY BUT SOME US ANALYSTS WERE SKEPTICAL ABOUT THE REPORT I DON'T THINK ANY FUNGUS PROBLEM WILL BE WIDESPREAD ENOUGH TO COUNTERACT THE BIG SIZE OF THE CROP SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO 9403100095 940310 TECHNOLOGY PRODIGY'S ONLINE ATLANTA NEWSPAPER WILL COVER AREA'S LOCAL HAPPENINGS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL BULLETIN TO ATLANTA RESIDENTS PULL OUT YOUR REPORTER'S NOTEBOOKS PRODIGY SERVICES CO IS ADDING ITS FIRST NEWSPAPER TO THE ONLINE COMPUTER SERVICE AND IS ENCOURAGING ATLANTA AREA RESIDENTS TO SUBMIT THEIR OWN STORIES THE WHITE PLAINS NY COMPANY AND COX NEWSPAPERS INC ARE OFFERING NEWS FROM THE ATLANTA JOURNALCONSTITUTION AND A SLEW OF LOCAL INFORMATION SUCH AS LITTLE LEAGUE SCORES CRIME NEWS BY NEIGHBORHOOD AND SCHOOLLUNCH MENUS THE SERVICE CALLED ACCESS ATLANTA WILL LAUNCH ON SUNDAY AND IT WILL INCLUDE FEATURES OTHER ONLINE NEWSPAPERS DON'T OFFER PHOTOGRAPHS AND VERY LOCALIZED REPORTS FROM LOCAL USERS THAT MAY WELL ENTAIL ALL THE NEWS THAT CAN'T FIT INTO PRINT BUT CAN FIT INTO THE INFINITE PIPELINE OF ONLINE SERVICES WHETHER IT'S ABOUT THE PTA GROUP OR NEIGHBORHOOD ASSOCIATIONS USERS WILL BE ENCOURAGED TO WRITE ARTICLES SAID BRIAN EK A SPOKESMAN FOR PRODIGY WHICH IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO INCREASINGLY LOCAL NEWSPAPERS ARE GOING ONLINE TO GIVE THEIR READERS MORE SPECIALIZED SERVICES AND TO GET THE INCREASED EXPOSURE A NATIONAL ONLINE SERVICE CAN AFFORD BUT SOME EXPERTS QUESTION WHETHER COMPUTERIZED NEWSPAPERS WILL REALLY CATCH ON I DON'T THINK PEOPLE WANT TO READ A NEWSPAPER ON A SCREEN SAYS DENISE CARUSO DIRECTOR OF TECHNOLOGY & MEDIA GROUP INC A SAN FRANCISCO PUBLISHER ONE OF THE BIGGEST MISTAKES THAT PEOPLE MAKE IN NEW MEDIA IS THINKING THAT YOU CAN TAKE ONE MEDIUM AND JUST TRANSFORM IT INTO ANOTHER ONE STILL THE RUSH TO THE COMPUTER SCREEN IS ON LAST MONTH NEWS CORP'S DELPHI INTERNET SERVICES TEAMED UP WITH PULITZER PUBLISHING CO TO OFFER NEWS FROM THE ST LOUIS POSTDISPATCH ALONG WITH LOCAL RESTAURANT REVIEWS AND MOVIE TIMETABLES COMPUSERVE INFORMATION SERVICES A UNIT OF H&R BLOCK CO OFFERS THE NEWSPAPER FLORIDA TODAY WHICH HOLDS ONLINE CHATS WITH LOCAL FIGURES SUCH AS JEB BUSH THE GUBERNATORIAL HOPEFUL AMERICA ONLINE INC OFFERS FOR EXAMPLE LOCAL BULLS TICKETS THROUGH ITS CHICAGO TRIBUNE ONLINE SERVICE AND PRODIGY PLANS TO OFFER THE TAMPA TRIBUNE THIS SUMMER WITH PAPERS FROM DAYTON OHIO AND AUSTIN TEXAS TO FOLLOW LIKE OTHER SERVICES ACCESS ATLANTA WILL INCLUDE UNCUT VERSIONS OF NEWSPAPER STORIES AND WILL OFFER USERS A CHANCE TO GIVE EDITORS A PIECE OF THEIR MINDS IT WILL ALSO HAVE CLASSIFIED ADS INFORMATION FROM LOCAL GOVERNMENT AGENCIES AND TOURIST BUREAUS UNLIKE OTHERS HOWEVER THE ONLINE JOURNALCONSTITUTION WILL ALSO DISPLAY LOCAL ADVERTISING AND CLASSIFIED ADS THAT CAN BE SEARCHED DAVID SCOTT PUBLISHER OF THE JOURNALCONSTITUTION'S ONLINE SERVICE SAYS USERS CAN SEARCH AUTO LISTINGS FOR A SPECIFIC MODEL THE SERVICE WILL START AT A FLAT FEE OF 695 A MONTH FOR NONPRODIGY MEMBERS AND 495 FOR MEMBERS USERS MUST THEN PAY AN EXTRA 25 CENTS PER EMAIL MESSAGE AND 360 AN HOUR TO CRUISE THE BULLETIN BOARDS MR SCOTT SAYS LOCAL ADVERTISING AND THE BULLETIN BOARD SERVICE WILL BE THE MAIN SOURCES OF REVENUE AFTER THREE YEARS HE HOPES THE SERVICE WILL HAVE 35000 TO 40000 SUBSCRIBERS WHICH WOULD BE A NICE BUSINESS FOR US BUT HE ADDS WE DON'T THINK THIS IS GOING TO SUBSTITUTE FOR THE PAPER 9403100094 940310 SOUTH KOREA FACES SHAKEOUT IN CAR MARKET BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA AN AGGRESSIVE BID BY US AND EUROPEAN TRADE OFFICIALS TO OPEN SOUTH KOREA'S DYNAMIC BUT TIGHTLY PROTECTED PASSENGER CAR MARKET COULD HASTEN A SHAKEOUT IN THE LOCAL AUTO INDUSTRY WHICH HAS SPENT BILLIONS OF DOLLARS ON NEW CAPACITY OFFICIALS FROM THE US TRADE REPRESENTATIVE'S OFFICE AND EUROPEAN UNION THIS WEEK ARE PRESSURING THE SOUTH KOREAN GOVERNMENT TO REDUCE WHAT THEY DESCRIBE AS AN ARRAY OF TARIFF AND NONTARIFF BARRIERS TO IMPORTED CARS LAST YEAR IMPORTS ACCOUNTED FOR 02 OF TOTAL AUTO SALES COMPARED WITH ABOUT 50 IN JAPAN SOUTH KOREAN TRADE OFFICIALS CONTEND THAT THE MARKET IS ALREADY LIBERALIZED AND THAT ITS HIGH TAX STRUCTURE FOR AUTOMOBILES DOES NOT DISCRIMINATE AGAINST IMPORTS BUT MOST PRIVATE ANALYSTS ACKNOWLEDGE AN ARRAY OF OBSTACLES THAT DISCOURAGE SALES OF FOREIGN CARS SHOULD THOSE BARRIERS BE LIFTED LOCAL AUTO MANUFACTURERS COULD BE FACED WITH NEW COMPETITION BY THE TIME A MASSIVE CAPACITY EXPANSION PROGRAM IS COMPLETED SOUTH KOREA'S FIVE CAR PRODUCERS HAVE EARMARKED ABOUT 10 BILLION TO DOUBLE PRODUCTION CAPACITY BY 2001 SOME ANALYSTS THINK THE DOMESTIC AUTO MARKET IS CROWDED EVEN WITHOUT FOREIGN COMPETITION ON MONDAY THE EU THREATENED TO SLAP RETALIATORY TARIFFS ON IMPORTED SOUTH KOREAN CARS ITS THREAT COINCIDED WITH A VISIT HERE BY PETER COLLINS DEPUTY ASSISTANT TO THE US TRADE REPRESENTATIVE TO DISCUSS VARIOUS TRADE DISPUTES ALTHOUGH COINCIDENTAL THE PARALLEL EFFORTS COME AT A TIME WHEN SEOUL IS ALREADY WORRIED THAT WASHINGTON'S TOUGH STANCE IN TRADE DISPUTES WITH TOKYO COULD SPILL OVER INTO USKOREAN RELATIONS WE DON'T WANT TO BE IN A POSITION OF HAVING TO RAISE A CLUB OVER THE KOREANS' HEADS SAID A US DIPLOMAT IN SEOUL BUT IF THESE THINGS AREN'T DONE VOLUNTARILY THERE ARE OTHER FORMS OF PERSUASIONS LOCAL MANUFACTURERS SAY THE PROSPECT OF FOREIGN COMPETITION DOESN'T BOTHER THEM OUR EXPANSION PLANS ARE MOSTLY FOR EXPORT SAYS A SPOKESMAN FOR HYUNDAI MOTOR CO SOUTH KOREA'S TOP AUTO MAKER FOREIGN COMPETITION WOULDN'T HAVE A BIG IMPACT ON US BUT ANALYSTS SAY THERE IS NO GUARANTEE EXPORTS SALES WILL BE ROBUST ENOUGH TO OFFSET DWINDLING MARKET SHARE AT HOME IT'S HARD TO TELL WHAT'S GOING TO HAPPEN SAID DON LEE AN ANALYST AT BARCLAYS DE ZOETE WEDD IF THE KOREANS DON'T HAVE THEIR PRICE AND TECHNOLOGY TOGETHER BY 1997 THEY'LL HAVE A DIFFICULT TIME SURVIVING IT'S A BIG CONCERN THE US AND EU DEMANDS INCLUDE A REDUCTION IN THE CUSTOMS AND LUXURY TAXES SLAPPED ON BOTH LOCAL AND IMPORTED CARS AND THE ELIMINATION OF RULES THAT PROHIBIT FOREIGN CAR COMPANIES FROM OFFERING FINANCING TO CUSTOMERS 9403100093 940310 CONGRESSIONAL HEARINGS ON WHITEWATER STILL SEEM LIKELY DESPITE PLEA BY FISKE BY PAULETTE THOMAS AND ELLEN JOAN POLLOCK STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE LIKELIHOOD OF CONGRESSIONAL HEARINGS INTO THE WHITEWATER AFFAIR INCREASED DESPITE SPECIAL COUNSEL ROBERT FISKE'S EFFORTS TO PERSUADE LAWMAKERS THAT THE PUBLIC SESSIONS COULD THWART HIS INVESTIGATION MEANWHILE TOP CLINTON ADMINISTRATION OFFICIALS TODAY WILL HAND OVER DOCUMENTS SUBPOENAED BY MR FISKE MR FISKE RECEIVED ENCOURAGEMENT FROM TWO SENATE GOP LEADERS ALFONSE D'AMATO OF NEW YORK AND WILLIAM COHEN OF MAINE THAT REPUBLICANS MIGHT AGREE TO DELAY ANY CONGRESSIONAL HEARINGS AT LEAST UNTIL MR FISKE FINISHED THE FIRST PHASE OF HIS INQUIRIES THAT PHASE CENTERS ON THREE WHITE HOUSE AND TREASURY MEETINGS ON A PENDING RESOLUTION TRUST CORP INVESTIGATION INTO A FAILED ARKANSAS THRIFT WHOSE FORMER OWNER WAS ONCE A BUSINESS PARTNER WITH THE CLINTONS IN WHITEWATER DEVELOPMENT CO MR FISKE CAME AWAY WITH NO IRONCLAD COMMITMENTS ON DELAYING THE HEARINGS BUT SEN D'AMATO ONE OF PRESIDENT CLINTON'S MOST VOCAL CRITICS ON WHITEWATER DID ASSURE THE SPECIAL COUNSEL THAT CONGRESS WOULDN'T GRANT IMMUNITY FROM PROSECUTION TO ANY WITNESSES CALLED TO TESTIFY CONGRESS GRANTED IMMUNITY TO LEADING WITNESSES IN THE IRANCONTRA HEARINGS WHICH GREATLY COMPLICATED PROSECUTION EFFORTS IN SUBSEQUENT TRIALS IN THE HOUSE LEADERS OF BOTH PARTIES MET WITHOUT REACHING AGREEMENT OVER HOW TO PROCEED WITH A BANKING COMMITTEE HEARING SET FOR MARCH 24 THE SAVINGSANDLOAN CLEANUP LAW REQUIRES PERIODIC OVERSIGHT HEARINGS ON THE RTC HOUSE REPUBLICANS LED BY IOWA REP JAMES LEACH HAVE VOWED TO USE THE FORUM TO PURSUE WHITEWATER QUERIES OVER MR FISKE'S OBJECTIONS REP LEACH HAS LISTED 40 WITNESSES HE WANTS TO QUESTION BUT NONE HAS BEEN OFFICIALLY NOTIFIED OF THE HEARING A COMMITTEE SPOKESWOMAN LAST NIGHT DENIED A NEWS REPORT THAT THE HEARING HAS BEEN POSTPONED AS WHITEWATER RAMIFICATIONS CONSUMED OFFICIAL WASHINGTON A NEW WALL STREET JOURNAL/NBC NEWS POLL FINDS THAT MORE AMERICANS PERCEIVE THE WHITEWATER AFFAIR AS A BELTWAY POLITICAL SQUABBLE THAN AS EVIDENCE OF ANY MISCONDUCT BY MR CLINTON THE POLL CONDUCTED LAST FRIDAY THROUGH TUESDAY FOUND THAT 34 BELIEVE THE ISSUE IS BEING USED AGAINST THE PRESIDENT FOR POLITICAL PURPOSES WHILE ONLY 16 THINK MR CLINTON COMMITTED FINANCIAL WRONGDOING BUT A PLURALITY 41 SAY THEY DON'T KNOW ENOUGH TO HAVE AN OPINION THE POLL FOUND APPROVAL RATINGS FOR MR CLINTON HAVE FALLEN SINCE THE PREVIOUS JOURNAL/NBC POLL IN JANUARY SOME 55 OF THE 1503 ADULTS SURVEYED APPROVE OF THE PRESIDENT'S JOB PERFORMANCE DOWN FROM 60 IN JANUARY 47 VIEW HIM POSITIVELY DOWN FROM 55 IN JANUARY HILLARY RODHAM CLINTON THE PRESIDENT'S WIFE IS VIEWED POSITIVELY BY 47 DOWN FROM 51 TWO MONTHS AGO IN THE MEANTIME THE RTC HAS BEGUN AN AUDIT OF ROSE LAW FIRM LEGAL BILLS YESTERDAY THREE AUDITORS FROM THE RTC'S INSPECTORGENERAL'S OFFICE MET WITH ROSE REPRESENTATIVES IN LITTLE ROCK FOR THE FIRST TIME THE RTC WILL AUDIT ALL ROSE BILLS TO ENSURE THERE WASN'T ANY OVERBILLING AND THAT ALL WORK IS DOCUMENTED ASSISTANT INSPECTOR GENERAL SHARON VANDER VENNET SAID THE REVIEW IS BEING HANDLED AS A ROUTINE AUDIT EXCEPT THAT WE'RE GOING BACK A LITTLE BIT LONGER THAN WE NORMALLY DO THE RTC AUDITORS WILL SPEND ROUGHLY SIX WEEKS AT THE FIRM IT WILL THEN TAKE ABOUT THREE MONTHS FOR THE RTC TO COMPILE ITS REPORT THE ROSE FIRM HAS BEEN CONDUCTING ITS OWN REVIEW OF FORMER PARTNER WEBSTER HUBBELL'S LEGAL BILLS INCLUDING SOME FOR THE RTC THE FIRM HASN'T COMMENTED ON OVERBILLING ALLEGATIONS AGAINST MR HUBBELL NOW A TOP JUSTICE DEPARTMENT OFFICIAL RONALD CLARK ROSE'S MANAGING PARTNER WOULD SAY ONLY THAT THE FIRM HADN'T REACHED ANY CONCLUSIONS IN ITS REVIEW THE ROSE FIRM ALSO WAS STRUGGLING WITH ALLEGATIONS CONCERNING THE DESTRUCTION OF A BOX THAT MAY HAVE CONTAINED FILES OF VINCENT FOSTER FORMER WHITE HOUSE DEPUTY COUNSEL A COURIER FOR THE FIRM IN LITTLE ROCK SAID HE SHREDDED DOCUMENTS THAT HAD BELONGED TO MR FOSTER AFTER THE SPECIAL COUNSEL WAS APPOINTED TO LOOK INTO MR FOSTER'S DEATH AND THE WHITEWATER CONTROVERSY IN AN INTERVIEW IN LITTLE ROCK JEREMY HEDGES SAID HE SHREDDED DOCUMENTS IN FILE FOLDERS MARKED WITH MR FOSTER'S INITIALS IN LATE JANUARY MR HEDGES SAID HE BELIEVES THE SHREDDING OCCURRED AFTER MR FISKE WAS APPOINTED SPECIAL COUNSEL ON JAN 20 BECAUSE BY THEN HE WAS AWARE OF MR FISKE'S NAME THERE IS NO REASON I WOULD HAVE KNOWN HIS NAME BEFORE EXPLAINED MR HEDGES THE TIMING OF THE SHREDDING IS OF PARTICULAR IMPORTANCE TO MR FISKE WHO IS LOOKING INTO ANY APPARENT EFFORT TO IMPEDE HIS INVESTIGATION ANOTHER ROSE COURIER CLAYTON LINDSEY WHO HELPED SHRED THE CONTENTS OF THE BOX BEARING MR FOSTER'S INITIALS SAID I'M NOT POSITIVE ABOUT THE DATE OF THE SHREDDING IN A TELEPHONE INTERVIEW HE SAID I THINK IT MIGHT HAVE BEEN AFTER JAN 20 BUT I'M NOT SURE MR HEDGES TESTIFIED BEFORE A GRAND JURY IN LITTLE ROCK LAST MONTH MR FISKE'S STAFF ALSO HAS INTERVIEWED FIVE OTHER COURIERS THEIR SUPERVISOR AND A BUILDING SUPERVISOR FOR THE ROSE LAW FIRM IN ADDITION ROSE'S MR CLARK WAS QUESTIONED ABOUT THE SHREDDING WHEN HE TESTIFIED BEFORE A GRAND JURY IN LITTLE ROCK LAST MONTH MR CLARK SAID THAT TWO FILE CLERKS INTERVIEWED BY THE FIRM DISPUTED MR HEDGES'S ACCOUNT OF WHAT DOCUMENTS WERE SHREDDED MR CLARK SAID THE FILE CLERKS SAY THERE WEREN'T ANY FILE FOLDERS IN THE BOX HE SAID THAT A LAWYER WHO SHUFFLED THROUGH THE CONTENTS AGREES AND THAT THE FIRM STILL HAS THE FILE FOLDERS THAT ONCE CONTAINED THE PAPERS SHREDDED MR CLARK WHO WOULDN'T IDENTIFY THE FILE CLERKS SAID THE SHREDDED PAPERS WERE ROSE FINANCIAL STATEMENTS RECRUITING CORRESPONDENCE AND OTHER INTERNAL PAPERS THERE IS A DIFFERENCE IN FACT SAID MR CLARK I CAN'T EXPLAIN THE DIFFERENCE MR CLARK SAID THE FIRM HAD ANTICIPATED GETTING SUBPOENAED EVEN BEFORE MR FISKE WAS APPOINTED AND HAD OPERATED UNDER THE ASSUMPTION THAT IT WOULD BE IMPROPER TO DESTROY ANY DOCUMENT RELATED TO THIS INVESTIGATION HE SAID THE FIRM HAS BEEN GATHERING AND PRESERVING DOCUMENTS FOR INVESTIGATORS SINCE LATE 1993 AND HAD BACKED UP EVERY COMPUTER EVERY HARD DRIVE IN THIS BUILDING THE WHITE HOUSE ALSO PREPARED TO TURN OVER SIX INCHES OF DOCUMENTS SUBPOENAED BY MR FISKE WHO PRAISED THE WHITE HOUSE FOR BEING VERY RESPONSIVE AND COOPERATIVE TEN WHITE HOUSE AND TREASURY DEPARTMENT OFFICIALS HAD BEEN SUBPOENAED TO APPEAR BEFORE A GRAND JURY IN WASHINGTON TODAY HOWEVER MANY OF THE OFFICIALS HAVE BEEN GRANTED A DELAY PRESIDENT CLINTON YESTERDAY INSTRUCTED HIS AIDES TO JUST TELL THEM WHAT HAPPENED WHEN THEY APPEAR BEFORE THE GRAND JURY BE VERY OPEN MICHAEL K FRISBY ALSO CONTRIBUTED TO THIS ARTICLE 9403100092 940310 POLITICS & POLICY HOUSE PANEL SEEKS TO PLACATE BUSINESS IN CRAFTING ALTERNATIVE HEALTH PROPOSAL BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE DEMOCRATS TRYING TO CRAFT AN ALTERNATIVE HEALTH PLAN ARE COMING FACETOFACE WITH THE QUESTION OF HOW MUCH THEY CAN SPEND TO PLACATE BUSINESS INTERESTS AND WIN SUPPORT FOR THE GOAL OF UNIVERSAL HEALTH COVERAGE A DRAFT BILL BEFORE THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE WOULD SIGNIFICANTLY CUT THE LEVEL OF BENEFITS AND BUSINESS SUBSIDIES PROPOSED BY THE CLINTON ADMINISTRATION BUT THERE IS STRONG PRESSURE TO RESTORE FUNDS TO HELP SMALL COMPANIES FINANCE HEALTH INSURANCE THEY WOULD BE REQUIRED TO HELP BUY FOR THEIR WORKERS I HAVE TO HELP SMALL BUSINESS NO DOUBT ABOUT IT SAID WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI BUT GIVEN THE HOSTILE STANCE THE SMALLBUSINESS LOBBY PARTICULARLY NATIONAL FEDERATION OF INDEPENDENT BUSINESS HAS TAKEN TOWARD THE OVERALL HEALTHREFORM EFFORT SUBCOMMITTEE CHAIRMAN FORTNEY PETE STARK D CALIF IS RELUCTANT TO COMMIT HIMSELF YET THE DAY THE NFIB SIGNS UP FOR SOMETHING I MIGHT CONSIDER IT MR STARK SAID WITHOUT SUCH A COMMITMENT HE JOKED MAKING CONCESSIONS NOW WOULD BE LIKE FEEDING DOG BISCUITS TO A PIT BULL THE PRACTICAL POLITICS IS BEST SEEN IN THE CASE OF REP SANDER LEVIN A MICHIGAN DEMOCRAT IN OTHER CIRCUMSTANCES HE MIGHT BE DESCRIBED AS A LIBERAL BUT HE FINDS HIMSELF TO THE RIGHT OF MR STARK ON HEALTHCARE REFORM HE IS ONE OF SEVERAL SWING VOTES ON THE SUBCOMMITTEE PUSHING FOR CONCESSIONS TO SMALL BUSINESS BUT HIS DETROITAREA DISTRICT ALSO REFLECTS THE HEAVY PRESENCE OF THE AUTO INDUSTRY WHICH HAS A STAKE IN HEALTHCARE SUBSIDIES FOR EARLY RETIREES THE STARK PLAN WOULD BE LESS GENEROUS THAN THE ADMINISTRATION'S ON BOTH COUNTS MODIFYING IT TO BUY PEACE WITH THESE INTERESTS WOULD ADD BILLIONS TO ITS COST AND FORCE THE SUBCOMMITTEE OR FULL WAYS AND MEANS PANEL TO CONSIDER OFFSETTING SAVINGS OR ADDITIONAL TAXES TO KEEP HIS PLAN FROM WIDENING THE DEFICIT MR STARK ALREADY HAS INCLUDED A POSSIBLE 08 PAYROLL TAX ON EMPLOYERS BUT EVEN THIS PROVISION DESCRIBED AS TEMPORARY IS VIEWED WITH IRRITATION BY THE COMMITTEE LEADERSHIP MEANWHILE IF DEMOCRATS RESTORE FUNDS TO BLUNT BUSINESS OPOSITION THEY WILL FACE CRITICISM FROM LABOR AND THE LEFT THAT THE PLAN DOESN'T GO FAR ENOUGH IN SUCH AREAS AS MENTAL HEALTH AND PREVENTIVE CARE THE NFIB AND OTHER BUSINESS ORGANIZATIONS CURRENTLY ARE POLLING THEIR MEMBERSHIP AGAIN REGARDING HEALTHCARE REFORM HOWEVER CRITICAL OF THE ADMINISTRATION'S PROPOSAL BUSINESS INTERESTS PRIVATELY CONCEDE THAT UNLESS THE STALEMATE IN CONGRESS IS BROKEN SOON THEY TOO STAND TO LOSE THE WORST OF ALL SCENARIOS FOR THE HEALTHINSURANCE INDUSTRY IS NO ACTION AT ALL SAID WILLIS GRADISON A FORMER REPUBLICAN CONGRESSMAN AND NOW PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA HIS TRADE GROUP HAS SPENT MILLIONS OF DOLLARS ON ADVERTISEMENTS AGAINST THE CLINTON PLAN WHILE MR STARK'S VISION OF A GOVERNMENT RUN MEDICARELIKE PROGRAM TO COVER MILLIONS OF UNINSURED HOUSEHOLDS IS TOO LIBERAL FOR MANY IN CONGRESS THE DISCUSSIONS IN HIS SUBCOMMITTEE THIS WEEK HAVE FORCED LAWMAKERS AND COMPETING PRIVATE INTERESTS TO FACE UP TO THE TRADEOFFS THAT WILL BE INVOLVED IN CRAFTING ANY COMPROMISE REP WILLIAM THOMAS R CALIF WHO SUCCEEDED MR GRADISON ON THE STARK PANEL LIKENED THE SEARCH FOR COMPROMISE TO THREEDIMENSIONAL CHESS I DON'T KNOW YET IF THE AREA OF IMMEDIATE DISCUSSION IS GOING TO BE THE ONE THAT WORKS HE SAID THE NFIB HAS OPPOSED ANY PLAN THAT WOULD REQUIRE EMPLOYERS TO HELP PAY FOR THEIR WORKERS' INSURANCE AS BOTH THE CLINTON AND STARK PLANS WOULD IT WAS UNSPARING IN ITS REMARKS PETE STARK HAS BEEN VERY CLEAR IN HIS TREMENDOUS DISLIKE FOR SMALL BUSINESS OWNERS HE'S SAID THEY HAVE NO SOCIAL CONSCIENCE SAID JACK FARIS THE ORGANIZATION'S PRESIDENT HE'S WRONG AND WE'RE SORRY HE FEELS THAT WAY THE PUBLIC MEETINGS OF THE PANEL THIS WEEK HAVE COINCIDED WITH SEPARATE PRIVATE SESSIONS IN WHICH DEMOCRATS AND REPUBLICANS HAVE SOUGHT TO FIND SOME MIDDLE GROUND WE ARE MOVING TOWARD A CONVERGENCE SAID HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH WHO STILL IS STRUGGLING TO FIND A WORKING MAJORITY IN HIS PANEL IN REMARKS THAT OPENED THE STARK PANEL'S DELIBERATIONS THIS WEEK REP JOHN LEWIS A HERO OF THE CIVILRIGHTS MOVEMENT FELL BACK ON FAMILIAR PASSAGES FROM FREDERICK DOUGLASS THAT HE HAD LEARNED AS A BOY WHILE PRACTICING ORATORY BEFORE THE CHICKENS ON A SOUTHERN FARM THOSE WHO PROFESS TO FAVOR FREEDOM AND YET DEPRECATE AGITATION ARE MEN WHO WANT CROPS WITHOUT PLOWING UP THE GROUND MR LEWIS SAID THEY WANT RAIN WITHOUT THUNDER AND LIGHTNING JEANNE SADDLER CONTRIBUTED TO THIS ARTICLE 9403100090 940310 SEC PRESSES MUNI ISSUERS FOR MORE DATA BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION FORMALLY STEPPED UP ITS PRESSURE ON MUNICIPALBOND ISSUERS TO MAKE THEM BEHAVE MORE LIKE PUBLICLY TRADED COMPANIES UNDER RULES PROPOSED YESTERDAY BROKERS AND DEALERS WOULD BE BARRED FROM SELLING MOST MUNICIPAL BONDS UNLESS THE UNDERWRITERS GUARANTEED THAT THE ISSUERS WOULD FILE ANNUAL FINANCIAL STATEMENTS AND PROVIDE NOTICE OF EVENTS THAT COULD AFFECT THE ISSUERS' FINANCIAL HEALTH THE PROPOSED RULE WOULD APPLY TO BROKERS AND DEALERS BECAUSE FEDERAL LAW PROHIBITS THE SEC FROM DIRECTLY REQUIRING THE DISCLOSURE OF FINANCIAL DATA FROM STATE AND LOCAL ENTITIES THAT ISSUE BONDS ISSUERS AND OTHER BONDMARKET PARTICIPANTS OPERATE UNDER GUIDELINES FOR VOLUNTARY DISCLOSURE OF FINANCIAL DATA BUT SEC CHAIRMAN ARTHUR LEVITT SAID THIS IS NOT ENOUGH THE SEC HAS LONG WANTED INVESTORS IN MUNICIPAL SECURITIES TO RECEIVE MORE DATA ABOUT THE FINANCIAL HEALTH OF THE ISSUERS THE AGENCY IS TAKING PREVENTATIVE MEASURES IN THE BOND MARKET AND NOT ACTING IN THE WAKE OF SOME TRAGEDY SAID ELISSE WALTER DEPUTY DIRECTOR OF THE SEC'S CORPORATION FINANCE DIVISION THE PROPOSAL TO CODIFY THE SEC'S EXPECTATIONS FOR DISCLOSURE IS LIKELY TO PROVOKE CRITICISM FROM BOTH DEALERS AND ISSUERS AND THE SEC SCHEDULED AN UNUSUALLY LONG COMMENT PERIOD OF 120 DAYS TO GATHER REACTION FROM ALL INTERESTED PARTIES INCLUDING PUBLIC BODIES UNACCUSTOMED TO DEALING WITH THE AGENCY THESE ARE STATE AND LOCAL GOVERNMENTS AND NOT FATCAT TENDER OFFERERS SAID CAITE MCGUIRE CHIEF COUNSEL OF THE SEC'S DIVISION OF MARKET REGULATION THE PUBLIC SECURITIES ASSOCIATION A NEW YORK TRADE GROUP FOR BOND DEALERS REACTED COOLLY TO THE PROPOSED RULES PSA SUPPORTS THE EFFORTS OF REGULATORS TO IMPROVE SECONDARYMARKET DISCLOSURE GROUP PRESIDENT HEATHER RUTH SAID IN A STATEMENT ADDING THAT THE GROUP WILL PROVIDE MOREDETAILED COMMENT AFTER REVIEWING THE SEC'S WRITTEN RULE PROPOSAL IN A RELATED ACTION THE COMMISSION PROPOSED A SEPARATE RULE THAT WOULD REQUIRE AMONG OTHER THINGS THAT INVESTORS BE INFORMED WHEN THE CREDITWORTHINESS OF A MUNICIPALBOND ISSUE HASN'T BEEN ASSESSED BY A RATING CONCERN CUSTOMERS ARE NOT ALWAYS AWARE THAT THEY ARE BUYING UNRATED BONDS SOME OF WHICH MAY BE SPECULATIVE MR LEVITT SAID THE SEC REITERATED ITS SUPPORT OF FEDERAL LEGISLATION THAT WOULD REQUIRE ISSUERS OF CONDUIT BONDS TO FOLLOW THE SAME REGISTRATION AND DISCLOSURE RULES FOR PUBLICLY TRADED COMPANIES CONDUIT BONDS TYPICALLY FINANCE PRIVATE VENTURES SUCH AS NURSING HOMES BUT ARE TREATED LIKE MUNICIPAL BONDS THEY ALSO HAVE A HIGHER DEFAULT RATE THAN OTHER MUNICIPAL SECURITIES REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE FINANCE SUBCOMMITTEE YESTERDAY SAID HE INTENDS TO INTRODUCE LEGISLATION SOON TO REMOVE THE EXEMPTION FROM SEC REGISTRATION FOR CONDUIT BONDS THE SEC RESTATED ITS BELIEF THAT MUNICIPALBOND ISSUERS ARE REQUIRED TO FOLLOW THE AGENCY'S ANTIFRAUD RULES INCLUDING THOSE THAT REQUIRE DISCLOSURE OF FINANCIAL CONDITION RISKS AND POTENTIAL CONFLICTS OF INTEREST THE POTENTIAL CONFLICTS INCLUDE POLITICAL CONTRIBUTIONS FROM UNDERWRITERS AND OTHERS TO ELECTED OFFICIALS WHO CONTROL THE ISSUERS' AWARDING OF BOND BUSINESS BUT MR LEVITT SAID THAT FAILING TO DISCLOSE THE INFORMATION ISN'T IN ITSELF A VIOLATION OF ANTIFRAUD RULES LIABILITY WOULD KICK IN ONLY WHEN INVESTORS HAVE BEEN DEFRAUDED HE SAID IN A SEPARATE RULE PROPOSAL THE SEC LISTED SEVERAL ITEMS THAT IT EXPECTS BROKERDEALERS TO DISCLOSE ON FORMS CONFIRMING CUSTOMER ORDERS AMONG THOSE ITEMS IS THE ESTIMATED YIELD OF COLLATERALIZED MORTGAGE OBLIGATIONS SPECIALIZED SECURITIES WHOSE YIELD IS TIED TO THE PREPAYMENTS OF MORTGAGES THE SEC HAS PREVIOUSLY EXPRESSED CONCERN THAT INVESTORS IN CMOS ARE FREQUENTLY UNAWARE THAT EARLY PREPAYMENT OF MORTGAGES CAN SIGNIFICANTLY AFFECT THE YIELD OF THE SECURITIES 9403100089 940310 INTERNATIONAL BRIEF CADBURY SCHWEPPES PLC PRETAX PROFIT CLIMBS 25 ON BETTER PROFIT MARGINS BRITISH CONFECTIONER AND BEVERAGE COMPANY CADBURY SCHWEPPES PLC SAID ITS PRETAX PROFIT JUMPED 25 TO 4163 MILLION 619 MILLION IN 1993 AS PROFIT MARGINS IMPROVED CADBURY'S PRETAX PROFIT WAS AT THE TOP END OF MARKET FORECASTS WHICH RANGED FROM 395 MILLION TO 410 MILLION ITS 91 DIVIDEND INCREASE TO 144 PENCE 214 CENTS A SHARE FROM 132 PENCE WAS IN LINE WITH EXPECTATIONS CADBURY CITED STRONG SALES AND PROFITS IN ITS UK BEVERAGES WHICH INCLUDES COCACOLA AND SCHWEPPES BEVERAGES BRANDS 9403100088 940310 US AND JAPAN NEARING ACCORD IN TRADE DISPUTE TENTATIVE COMPROMISE AIDS MOTOROLA NOT AT&T PROGRESS ON AUTOS SEEN BY ASRA Q NOMANI AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL THE US AND JAPAN HAVE TENTATIVELY SETTLED SEVERAL IMPORTANT ISSUES IN THEIR DISPUTE OVER CELLULAR TELEPHONES AND THE TWO SIDES APPEAR HEADED TOWARD A COMPROMISE THAT WOULD AVERT US SANCTIONS AGAINST JAPANESE GOODS ALTHOUGH DIFFERENCES REMAIN AN AGREEMENT WOULD SIGNAL COMPROMISE AT A CRITICAL TIME IN RELATIONS BETWEEN THE US AND JAPAN AND WOULD BE A BOOST TO MOTOROLA INC'S EFFORT TO EXPAND IN JAPAN IT COULD HOWEVER HURT BUSINESS FOR ANOTHER BIG US COMPANY AMERICAN TELEPHONE & TELEGRAPH CO WHOSE OFFICIALS HAVE BEEN WARNED THAT THEY COULD LOSE WORK IN JAPAN UNDER CURRENT TERMS OF THE TALKS IN ANOTHER APPARENT EFFORT TO EASE TRADE TENSIONS WITH THE US JAPANESE OFFICIALS MET WITH GENERAL MOTORS CORP AND FORD MOTOR CO EXECUTIVES IN DETROIT AND PROMISED TO MAKE IT EASIER FOR THEM TO EXPORT AUTOS TO JAPAN AS PREVIOUSLY REPORTED JAPANESE TRANSPORT MINISTRY OFFICIALS HAVE ALREADY DECIDED ON STEPS THAT WILL HELP CHRYSLER CORP SHARPLY BOOST EXPORTS OF JEEP CHEROKEES TO JAPAN THE CLINTON ADMINISTRATION HAS TURNED UP THE HEAT IN RECENT WEEKS THREATENING TO IMPOSE TRADE SANCTIONS IF JAPAN DOESN'T OPEN ITS MARKET TO US COMPANIES LAST WEEK PRESIDENT CLINTON RENEWED A TOUGH TRADE MEASURE CALLED SUPER 301 THAT ALLOWS THE US TO LEVY SANCTIONS AGAINST COUNTRIES IT DEEMS UNFAIR TRADING PARTNERS JAPANESE OFFICIALS SAID JAPAN IS CLOSE TO TERMS WITH THE US OVER INCREASING THE NUMBER OF CELLULAR TELEPHONE RELAY STATIONS AND CHANNELS AVAILABLE TO MOTOROLA WHICH HAS COMPLAINED THE JAPANESE MARKET IS TOO CLOSED MOTOROLA OFFICIALS IN TOKYO HOWEVER SOUGHT TO DAMP SPECULATION THAT A DEAL IS CLOSE IT COULD ALL GO UP IN SMOKE SAID ONE OFFICIAL WE DON'T HAVE THIS GREAT AMOUNT OF CONFIDENCE THAT EVERYONE ELSE HAS WE STILL THINK THAT SANCTIONS ARE A DISTINCT POSSIBILITY AN OFFICIAL AT JAPAN'S MINISTRY OF POSTS AND TELECOMMUNICATIONS SAID THAT IDO AND MOTOROLA HAVE ALMOST REACHED AN AGREEMENT BUT THAT THE TWO COMPANIES STILL MUST FINALIZE THEIR DISCUSSIONS JAPANESE OFFICIALS SAID JAPAN IS CLOSE TO AGREEING TO HAVE IDO CORP A CLOSELY HELD JAPANESE CELLULAR CARRIER OPEN 159 RELAY STATIONS FOR THE NAGOYATOKYO CORRIDOR BY THE END OF 1995 FOR MOTOROLA'S SYSTEM OF PHONE SERVICE THAT WOULD MEAN THAT MOTOROLA WOULD HAVE A TOTAL OF ABOUT 350 STATIONS IN JAPAN AND PROVIDE MOTOROLA PART OF THE EXPANSION THAT IT'S SEEKING THE JAPANESE OFFICIALS SAID THE TWO SIDES ARE ALSO CLOSE TO AGREEMENT ON INCREASING THE NUMBER OF CHANNELS MOTOROLA WOULD GET MOTOROLA SAYS IT HAD 2700 CHANNELS AT THE END OF LAST YEAR IN THE TOKYONAGOYA REGION WITH ANOTHER 2800 BEING DEVELOPED THE COMPANY HAS ASKED FOR 16100 CHANNELS WHICH COULD HANDLE 450000 SUBSCRIBERS BY THE END OF 1995 AN OFFICIAL SAID JAPAN IS CLOSE TO AGREEING TO THE US DEMAND JAPANESE OFFICIALS WARNED HOWEVER THAT THE TERMS WOULD BE A COSTLY VENTURE FOR IDO AND THAT THE COMPANY WOULD HAVE TO DELAY ITS PLANS TO SWITCH TO DIGITAL SERVICE FROM ANALOG A VENTURE THAT WAS TO INVOLVE AT&T JIM MCGANN AN AT&T SPOKESMAN SAID THE JAPANESE GOVERNMENT HAS INFORMED US THAT THEY ARE GOING TO INSTRUCT IDO TO NOT GO FORWARD WITH THEIR PLANS TO CONVERT TO DIGITAL WHAT WE ARE TRYING TO DO NOW IS TRYING TO ANALYZE THE SITUATION FULLY AND TRY TO ANALYZE HOW WE'RE GOING TO BE AFFECTED BY THIS THE JAPANESE OFFICIALS SAID JAPAN IS ALSO CLOSE TO AGREEING TO FREEZE IDO EXPANSION OF NIPPON TELEGRAPH & TELEPHONE CORP'S CELLULARPHONE SYSTEM NTT IS ALSO A PARTNER OF IDO'S AND MOTOROLA HAS BEEN SEEKING THE FREEZE ON THE GROUNDS THAT IDO HAS BEEN SWINGING PURCHASES TO NTT A US CONGRESSIONAL OFFICIAL FAMILIAR WITH THE TALKS SAID JAPAN IS MOVING TO KEEP THE US FROM ISSUING A PRELIMINARY LIST OF JAPANESE PRODUCTS ON WHICH THE US WOULD IMPOSE PUNITIVE TARIFFS THE US COULD ISSUE THAT LIST NEXT WEEK WHICH WOULD BE ABOUT A MONTH AFTER THE US ALLEGED THAT TOKYO HAD VIOLATED A 1989 AGREEMENT IN WHICH IT PROMISED TO PROVIDE COMPARABLE MARKET ACCESS TO ITS CELLULARPHONE MARKET IN AN INTERVIEW US TRADE REPRESENTATIVE MICKEY KANTOR TOOK A CAUTIOUS BUT OPTIMISTIC TONE HE SAID WE'VE MADE PROGRESS BUT THERE ISN'T AN AGREEMENT HE ADDED THERE IS AGREEMENT ON SOME ISSUES BUT NOT ALL MOTOROLA SPOKESMAN TIM KELLOGG ACKNOWLEDGED TALKS HAVE BEEN MOVING IN A POSITIVE DIRECTION BUT SAID THE COMPANY WON'T DISCUSS ANY CONCESSIONS WRUNG FROM THE JAPANESE UNTIL THE NEGOTIATIONS ARE COMPLETED HE NOTED MOTOROLA STANDS TO GAIN AS MUCH AS 300 MILLION IN EXPORTS TO JAPAN IF IT HAS COMPARABLE MARKET ACCESS IN THE DISPUTE MOTOROLA CLAIMS THAT IT IS BEING SHUT OUT OF THE HEAVILY POPULATED TOKYONAGOYA CORRIDOR JAPAN'S TELECOMMUNICATIONS MINISTRY PAIRED MOTOROLA WITH IDO MOTOROLA CLAIMS THAT ITS PARTNER MOSTLY PUSHES NTT'S TECHNOLOGY AND HAS WANTED JAPANESE GOVERNMENT ASSURANCES THAT IT WOULD PROMOTE MOTOROLA'S SYSTEM JAPAN ARGUES THAT IT HAS ALREADY GIVEN SPECIAL TREATMENT TO MOTOROLA BY ALLOWING IT TO USE A DIFFERENT TECHNOLOGY IN MOST OF JAPAN AND THAT THE COMPANY IS SEEKING TO BUILD ITS BUSINESS TO A LEVEL THAT TOOK NTT MORE THAN A DECADE TO ESTABLISH IN MEETINGS AT GM AND FORD JAPANESE OFFICIALS SAID JAPAN'S MINISTRY OF TRANSPORT WILL NEXT MONTH ESTABLISH AN OFFICE IN THE JAPANESE CONSULATE IN DETROIT TO HELP US AUTO MAKERS OBTAIN A PERMIT ALLOWING THEM TO EXPORT VEHICLES TO JAPAN WITHOUT SUBMITTING EACH VEHICLE FOR INDIVIDUAL INSPECTION JAPANESE OFFICIALS TOLD THE AUTO MAKERS TODAY AS REPORTED JAPANESE OFFICIALS WILL PRESENT CHRYSLER WITH A TYPE CERTIFICATE FOR JEEP CHEROKEES CERTIFYING ALL CHEROKEES AS ROADWORTHY AND NOT IN NEED OF INDIVIDUAL INSPECTIONS ALL THE NECESSARY PROCEDURES WILL BE CARRIED OUT IN THE US SAID KENICHI ANDO DIRECTOR OF THE JAPAN EXTERNAL TRADE ORGANIZATION'S AUTOMOBILE DEPARTMENT SO THERE WILL BE NO NEED FOR MANUFACTURERS TO SEND SAMPLE VEHICLES TO JAPAN FORD HOPES TO USE THE PROCEDURE TO WIN A TYPE CERTIFICATE TO EXPORT A RIGHTHANDDRIVE VERSION OF ITS PROBE WHICH IS BUILT IN THE US ON A MAZDA CHASSIS GM WILL TRY TO USE THE PROCESS TO EXPEDITE ITS PREVIOUSLY ANNOUNCED PLAN TO EXPORT 20000 CHEVROLET CAVALIERS A YEAR STARTING IN 1996 TO JAPAN WHERE THEY WILL BE SOLD THROUGH THE TOYOTA MOTOR CORP SALES NETWORK MR ANDO SAID THE DECISION TO VISIT DETROIT WAS MADE WITHIN THE PAST EIGHT DAYS IT APPEARS THE MEETING IS IN RESPONSE TO GROWING TRADE TENSIONS BETWEEN THE TWO COUNTRIES BUT MR ANDO SAID HE COULD NOT COMMENT ON POLITICAL MATTERS FORD AND CHRYSLER EXECUTIVES SAID THAT THE NEW EFFORT IS HELPFUL BUT THEY SAID NONETHELESS THAT JAPAN STILL HAS MORE REGULATORY BARRIERS TO AUTO IMPORTS THAN ANY OTHER COUNTRY MR ANDO TOOK ISSUE WITH THAT AND SAID THAT THE BIG THREE SIMPLY HAD NOT MADE A SERIOUS EFFORT TO SELL IN JAPAN MANY JAPANESE COMPANIES HAVE BRANCH OFFICES IN ANN ARBOR MICH JUST TO GET EMISSION APPROVAL FROM THE US ENVIRONMENTAL OFFICE THERE MR ANDO SAID BUT ON THE OTHER HAND THERE ARE NO US BRANCH OFFICES SET UP JUST FOR GETTING TYPE CERTIFICATION IN JAPAN BUT THANKS LARGELY TO THE SOARING VALUE OF THE YEN AND GROWING PRODUCTIVITY OF US AUTO MAKERS THE BIG THREE ARE BEGINNING TO TAKE THE PROSPECT OF EXPORTING TO JAPAN MORE SERIOUSLY LAST YEAR FORD LOWERED SOME OF ITS PRICES IN JAPAN BY 15 TO 20 THE COMPANY SAID NOW THE BIG THREE HAVE VERY COMPETITIVE PRODUCTS MR ANDO SAID AND THEY ARE MOTIVATED MICHAEL J YBARRA CONTRIBUTED TO THIS ARTICLE 9403100087 940310 WHO'S NEWS MADISON GROUP SAYS BOARD HAS DISMISSED LUCAS AS ITS PRESIDENT FORT LAUDERDALE FLA MADISON GROUP ASSOCIATES INC SAID ITS BOARD DISMISSED KENNETH LUCAS PRESIDENT NAMING DEAN J TRANTALIS AS INTERIM PRESIDENT THE COMPANY ALSO SAID TWO NEW DIRECTORS ROLAND BRETON AND STEVE GIBBONEY HAD BEEN APPOINTED TO ITS BOARD MR LUCAS BECAME CHIEF EXECUTIVE OF THE MEDIA CONCERN LESS THAN TWO MONTHS AGO WHEN WILLIAM T CRAIG RESIGNED FROM HIS JOB AS A DIRECTOR AND CHIEF EXECUTIVE OFFICER THE COMPANY GAVE NO REASON FOR MR LUCAS'S DISMISSAL NEITHER HE NOR MADISON EXECUTIVES COULD BE REACHED FOR COMMENT THE MANAGEMENT CHANGE IS THE LATEST IN A SERIES OF EVENTS THAT HAVE SHAKEN THE COMPANY IN RECENT MONTHS AS PREVIOUSLY REPORTED THE SECURITIES AND EXCHANGE COMMISSION CONTACTED SEVERAL INDIVIDUALS ABOUT THEIR DEALINGS WITH THE COMPANY ONE OF THOSE INDIVIDUALS SAID THE SEC HAD ASKED ABOUT HOW THE COMPANY VALUED ITS ASSETS THOSE ASSETS CONSIST LARGELY OF VIDEO LIBRARIES ACCORDING TO A RECENT SECURITIES FILING AN ACCOUNTANT FORMERLY HIRED BY MADISON RECOMMENDED THAT AN INDEPENDENT SPECIALIST BE HIRED TO EVALUATE THE VIDEO LIBRARIES 9403100086 940310 INTERNATIONAL BRIEF AIR FRANCE CAPITAL INJECTION IS SLATED BY THE FRENCH GOVERNMENT THE FRENCH GOVERNMENT SAID IT IS PREPARED TO TAKE PART IN THE FIRST TRANCHE OF A CAPITAL INJECTION FOR THE MONEYLOSING STATE AIRLINE AIR FRANCE UNDER A RECOVERY PLAN PROPOSED BY ITS CHAIRMAN CHRISTIAN BLANC BUT THE GOVERNMENT'S WILLINGNESS TO INJECT MORE CASH IN SUCCESSIVE TRANCHES WILL DEPEND ON WHETHER THE AIRLINE ATTAINS CERTAIN RECOVERY GOALS THE PRIME MINISTER'S OFFICE SAID MR BLANC HAD ASKED FOR A VERY SIGNIFICANT CAPITAL INCREASE NEWS REPORTS HAVE PEGGED THE AMOUNT AT 20 BILLION FRANCS 343 BILLION BUT AIR FRANCE REFUSED TO CONFIRM ANY AMOUNT THE FRENCH GOVERNMENT SAID THAT THE RECOVERY PLAN PROPOSED BY THE CHAIRMAN WILL CUT STAFF AND IMPROVE PRODUCTIVITY WITHOUT FIRING ANYONE IN CONSULTATION WITH THE UNIONS EMPLOYEES WILL BE OFFERED A CHANCE TO TAKE SHARES IN AIR FRANCE UNDER THE PLAN 9403100085 940310 BUSINESS BRIEF LDI CORP ADVISER IS ENGAGED TO HELP COMPANY BOOST PROFITABILITY LDI CORP SAID IT HIRED BEAR STEARNS & CO TO HELP SENIOR MANAGEMENT CONDUCT A COMPREHENSIVE STRATEGIC BUSINESS REVIEW THE CLEVELAND COMPANY SAID ITS OBJECTIVE IS TO IDENTIFY AND RECOMMEND APPROPRIATE ACTION FOR NONCORE BUSINESSES TO EVALUATE THE BENEFITS OF FACILITIES CONSOLIDATION AND TO DEVELOP OTHER WAYS TO ENHANCE PROFITABILITY THE COMPANY WHICH LEASES AND SELLS NEW AND USED DATAPROCESSING TELECOMMUNICATIONS AND OTHER HIGHTECHNOLOGY EQUIPMENT AS WELL AS PROVIDING OTHER SERVICES ALSO SAID IT'S GETTING OUT OF THE PERSONALCOMPUTER SUPERSTORE BUSINESS THE COMPANY SAID IT PLANS TO CLOSE ITS THREE SUPERSTORES AND SELL THEIR INVENTORY 9403100084 940310 LEGAL BEAT POWERFUL COMPANIES UNITE TO PUSH FOR LEGAL REFORM BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SOME OF THE NATION'S BIGGEST COMPANIES ARE QUIETLY JOINING FORCES IN A FRESH WELLFINANCED PUSH FOR NEW LAWS TO CURB JURY AWARDS AND DISCOURAGE FRIVOLOUS LAWSUITS IN PERIODIC MEETINGS OVER THE PAST SIX MONTHS TOP LAWYERS AT FORTUNE 500 COMPANIES HAVE FORMED AN ALLIANCE WHOSE GOAL IS TO CLIP PLAINTIFFS' LAWYERS' WINGS THE COMPANIES MANY OF WHOM HAVE BEEN RECENT TARGETS OF PRODUCTLIABILITY AND ENVIRONMENTAL LAWSUITS ARE HOPING THEIR FINANCIAL AND ORGANIZATIONAL MUSCLE WILL ENERGIZE THE FLAGGING LEGALREFORM MOVEMENT THE NEW COALITION CALLED THE CIVIL JUSTICE REFORM GROUP HAS 17 MEMBERS SO FAR AND INCLUDES RIVALS FORD MOTOR CO AND GENERAL MOTORS CORP AS WELL AS EXXON CORP TEXACO INC AMERICAN TELEPHONE & TELEGRAPH CO PFIZER INC AND INTERNATIONAL PAPER CO JACK MARTIN THE GENERAL COUNSEL OF FORD HEADS ITS STEERING COMMITTEE OTHER COMMITTEE MEMBERS INCLUDE JUDYTH PENDELL VICE PRESIDENT LAW AND REGULATORY AFFAIRS AT AETNA LIFE & CASUALTY AND GEORGE FRAZZA GENERAL COUNSEL OF JOHNSON & JOHNSON THE GROUP'S LEADERS HOPE TO ADD MANY MORE MEMBERS IN COMING MONTHS COMPANIES ARE BEING ASKED TO MAKE INITIAL CONTRIBUTIONS OF AS MUCH AS 100000 ACCORDING TO PEOPLE FAMILIAR WITH THE GROUP WHICH IS ALSO SOLICITING CONTRIBUTIONS AND SUPPORT FROM TRADE GROUPS AND MUNICIPALITIES THE NATION'S LEADING PLAINTIFFS' LAWYERS' GROUP DERIDES THE NEW VENTURE THIS IS HOW CORPORATIONS ARE TRYING TO SUBVERT THE ONLY MEANS THAT THE CONSUMER HAS OF GETTING ANY KIND OF JUSTICE SAYS BARRY J NACE PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA A WASHINGTONBASED LOBBYING GROUP FOR 60000 TRIAL LAWYERS THIS IS NOTHING NEW THEY ARE JUST FURTHERING THE INTERESTS OF THE MULTIBILLIONDOLLAR CORPORATIONS BIG BUSINESS OF COURSE HAS FOR MORE THAN A DECADE POURED MILLIONS OF DOLLARS INTO LOBBYING EFFORTS AIMED AT REDUCING THEIR VULNERABILITY TO HUGE DAMAGE AWARDS BUT THOSE EFFORTS HAVE SUFFERED FROM A LACK OF FOCUS AND COORDINATION RESULTING IN AN ALPHABET SOUP OF SOCALLED TORTREFORM GROUPS IN WASHINGTON AND ELSEWHERE IN THE FACE OF STRONG OPPOSITION FROM CONSUMER GROUPS AND TRIAL LAWYERS THE RESULTS HAVE BEEN DISAPPOINTING THERE ARE A LOT OF PEOPLE GOING OFF ON DIFFERENT AGENDAS EXPLAINS BILL SHANNON ASSISTANT GENERAL COUNSEL OF CATERPILLAR INC A MEMBER OF THE NEW COALITION I THINK THIS GROUP IS TRYING TO ACT AS A CATALYST ON THE NATIONAL SCENE AND TO PROVIDE SOME KIND OF ASSISTANCE IN THE VARIOUS STATES WHILE INDIVIDUAL MEMBERS OF THE ALLIANCE DECLINED TO DISCUSS THE VENTURE THE GROUP APPARENTLY PLANS TO CHANNEL CASH AND OTHER SUPPORT SUCH AS RESEARCH AND LOBBYING ASSISTANCE TO A SELECT NUMBER OF EXISTING CIVILJUSTICE REFORM GROUPS AROUND THE COUNTRY THE TEXAS CIVIL JUSTICE LEAGUE ONE OF THE NATION'S LARGEST LEGALREFORM LOBBYING GROUPS FOR INSTANCE HAS ALREADY BEEN APPROACHED WITH THE OFFER OF A SUBSTANTIAL GRANT SAYS RALPH WAYNE THE LEAGUE'S PRESIDENT INSIDERS SAY THE CORPORATE ALLIANCE IS CONSIDERING PURSUING STATELEVEL LEGISLATION IN SUCH LAWSUITRICH PLACES AS NEW YORK FLORIDA NEW JERSEY ILLINOIS AND CALIFORNIA MR WAYNE SAYS HIS LEAGUE WILL MAKE USE OF THE CORPORATIONS' FINANCIAL SUPPORT IN ITS UPCOMING EFFORT TO LIMIT PUNITIVE DAMAGES IN TEXAS COURTS IN ADDITION TO BUILDING A WARCHEST THE CORPORATE ALLIANCE HOPES TO DRAW ON OTHER STRENGTHS COMPANIES OF THIS SIZE HAVE ENORMOUS GRASSROOTS RESOURCES SAYS MARTIN CONNOR THE PRESIDENT OF THE AMERICAN TORT REFORM ASSOCIATION AN UMBRELLA GROUP FOR MORE THAN 40 STATE INTEREST GROUPS WHO PROMOTE STATE LEGISLATION ON LIABILITY ISSUES HE SAYS EMPLOYEES OF MAJOR CORPORATIONS CAN BE SOME OF THE MOST EFFECTIVE REPRESENTATIVES FOR SUCH PROPOSALS OTHER PEOPLE FAMILIAR WITH THE NEW GROUP SAY THEY VIEW A REPORT THAT TEXACO PREPARED SOME YEARS AGO ILLUSTRATING PROBLEMS WITH PUNITIVE DAMAGE AWARDS WHICH MAY BE AWARDED IN ADDITION TO COMPENSATORY DAMAGES AND ARE DESIGNED TO PUNISH SERIOUS WRONGDOING AS THE KIND OF HELPFUL CORPORATESPONSORED RESEARCH THAT THE ALLIANCE COULD PROVIDE THIS IS GOING TO BRING NEW PLAYERS AND NEW RESOURCES INTO STATE TORT REFORM IN A MAJOR NEW WAY SAYS MR CONNER MANY PEOPLE BELIEVE THAT OIL COMPANIES AND AUTO MAKERS DESPITE THEIR SIZE AND CLOUT GENERALLY HAVEN'T MADE THE PURSUIT OF STATELEVEL REFORMS A PRIORITY UNTIL NOW THE NEW GROUP REFLECTS THE APPARENTLY GROWING FRUSTRATION SOME COMPANIES FEEL WITH THE REPEATED FAILURE OF SIGNIFICANT LIABILITYRELATED LEGISLATION IN CONGRESS SINCE 1982 FOR EXAMPLE BUSINESS HAS HEAVILY SUPPORTED A FEDERAL BILL AIMED AT LIMITING THE LIABILITY OF MANUFACTURERS OF DEFECTIVE PRODUCTS BUT EVERY YEAR THE BILL DESPITE BEING SIGNIFICANTLY WATERED DOWN OVER TIME HAS BEEN SHOT DOWN BY THE POWERFUL TRIALLAWYER LOBBY PROPONENTS OF THE FEDERAL LEGISLATION ARE HOPING TO GET THEIR FIRST VOTE ON THE ISSUE ON THE SENATE FLOOR THIS SPRING BUT THEY RECOGNIZE THAT IT HAS BEEN A STRUGGLE THERE IS OBVIOUSLY FRUSTRATION OUT THERE SAYS WILLIAM FAY EXECUTIVE DIRECTOR OF THE PRODUCT LIABILITY COORDINATING COMMITTEE A WASHINGTONAREA GROUP THAT HAS BEEN THE DRIVING FORCE BEHIND THE FEDERAL BILL AT THE SAME TIME MR FAY SAYS HE BELIEVES THAT COMPANIES INVOLVED IN THE NEW ALLIANCE WILL CONTINUE TO SUPPORT HIS EFFORT I DON'T SENSE ANY EROSION IN THE SUPPORT HE SAYS A FEDERAL APPEALS COURT IN NEW YORK HAS UPHELD ATTORNEY HARVEY D MYERSON'S 1992 FRAUD CONVICTIONS ONCE CONSIDERED AMONG THE NATION'S TOP TRIAL LAWYERS MR MYERSON WAS SENTENCED TO FIVE YEARS AND 10 MONTHS IN PRISON FOR OVERBILLING CLIENTS MORE THAN 2 MILLION AND FRAUDULENTLY CLAIMING PERSONAL CHARGES AS LEGITIMATE BUSINESS EXPENSES UNDER FEDERAL SENTENCING GUIDELINES THE FORMER MYERSON & KUHN PARTNER IS EXPECTED TO SERVE MOST OF THAT TIME WITHOUT OPPORTUNITY FOR PAROLE HE CURRENTLY IS AT THE LOWSECURITY FEDERAL CORRECTIONAL INSTITUTION IN MILAN MICH ACCORDING TO FEDERAL PRISON OFFICIALS JEREMY GUTMAN HIS ATTORNEY ON THE APPEAL SAYS THAT MR MYERSON HAS SERVED ABOUT A YEAR OF THE SENTENCE MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9403100083 940310 CENTOCOR CUT COSTS SHARPLY IN 1993 SEES PROFIT LIKELY IN 1995 MALVERN PA BIOTECHNOLOGY RESEARCH COMPANY CENTOCOR INC SHARPLY REDUCED ITS EXPENDITURES IN 1993 SEES CONTINUED IMPROVEMENT THIS YEAR AND COULD EVEN TURN A PROFIT IN 1995 THE IMPROVING FORTUNES OF THE MALVERN PA COMPANY WILL COME AS RELIEF TO ITS INVESTORS WHO WATCHED A ONCEPROMISING CENTOCOR DRUG CENTOXIN CRASH EARLY LAST YEAR AFTER DISAPPOINTING CLINICAL TRIALS WE SEE 1994 AS A SIGNIFICANT YEAR OF TURNAROUND ONE WHERE WE SET THE STAGE FOR PROFITABILITY IN 1995 SAID DAVID HOLVECK THE COMPANY'S PRESIDENT CENTOCOR WENT ON A CRASH FINANCIAL DIET LAST YEAR AFTER ITS WIDELY ANTICIPATED SEPSIS DRUG PROVED DISAPPOINTING IN CLINICAL TRIALS YESTERDAY THE COMPANY REPORTED A FOURTHQUARTER NET LOSS OF 7 MILLION OR 17 CENTS A SHARE ON SALES AND CONTRACTS OF 305 MILLION A YEAR EARLIER THE COMPANY LOST 897 MILLION OR 218 A SHARE ON REVENUE OF 334 MILLION FOR THE FULLYEAR THE COMPANY REPORTED A LOSS OF 744 MILLION OR 179 A SHARE COMPARED WITH A LOSS OF 1941 MILLION OR 490 A SHARE FOR 1992 SOME ANALYSTS WERE IMPRESSED BY A REDUCTION IN THE COMPANY'S BURN RATE OR RATE AT WHICH IT SPENDS MONEY ON OPERATIONS CENTOCOR ENDED THE YEAR WITH AN OPERATING CASH BURN OF 48 MILLION 2 MILLION LESS THAN BUDGETED WHEN THE COMPANY SHARPLY CUT BACK AFTER THE CENTOXIN RESULTS WE NOW HAVE ANNUAL BURN RATES AMOUNTING TO WHAT THE QUARTERLY ONES USED TO BE SAID TIM COST INVESTOR RELATIONS DIRECTOR A NEW CENTOCOR DRUG CENTORX DESIGNED TO REDUCE CLOTRELATED COMPLICATIONS IS SHOWING PROMISING RESULTS SAID CAROL WERTHER AN ANALYST WITH COWEN & CO BUT SHE ISN'T RECOMMENDING THE STOCK IN PART BECAUSE CENTOCOR WILL HAVE TO RELY ON THE SALES STAFFS OF BIG DRUG COMPANIES FOR MARKETING HELP BUT THE LATEST RESULTS SHOW THIS COMPANY IS NOT GOING OUT OF BUSINESS AND A YEAR AGO YOU DIDN'T KNOW THAT SHE SAID 9403100082 940310 FINANCING BUSINESS LEAR SEATING CORP LEAR SEATING CORP SOUTHFIELD MICH A MAKER OF CAR AND TRUCK SEATS SAID IT PLANS AN INITIAL PUBLIC OFFER OF 9375 MILLION COMMON SHARES PRICED BETWEEN 15 AND 17 IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION LEAR SAID THE COMPANY WILL ONLY RECEIVE AS MUCH AS 106 MILLION FROM THE SALE OF ABOUT 625 MILLION OF ITS SHARES THE REMAINING 3125 MILLION SHARES WHICH COULD SELL FOR AS MUCH AS 5313 MILLION WILL BE SOLD BY FIMA FINANCE MANAGEMENT INC A BRITISH VIRGIN ISLANDS COMPANY CONTROLLED BY IFINT SA OF LUXEMBOURG AN INTERNATIONAL INVESTMENT HOLDING COMPANY 9403100081 940310 AGRICULTURE SECRETARY ESPY PROPOSES RULES FOR POULTRY WASHINGTON AGRICULTURE SECRETARY MIKE ESPY OUTLINED A PACKAGE OF PROPOSALS TO IMPROVE THE WHOLESOMENESS OF POULTRY BUT AIDES COULDN'T SAY WHEN THEY MIGHT TAKE EFFECT UNDER A PROPOSED CHANGE IN THE GOVERNMENT'S FINISHEDPRODUCT STANDARD MR ESPY SAID FEDERAL INSPECTORS WOULD NO LONGER TOLERATE ANY FECAL MATTER ON CHICKEN AND OTHER FOWL OTHER PROPOSALS WOULD CODIFY AN INDUSTRY PRACTICE SPRAYING BIRDS WITH ANTIBACTERIAL RINSES AND WOULD REQUIRE THE USE OF BACTERIAL TESTS ON A STATISTICAL SAMPLING OF BIRDS IN ADDITION THE AGRICULTURE DEPARTMENT WOULD MAKE A CHANGE IN INSPECTION PROCEDURES TO BETTER CATCH FECAL CONTAMINATION ON THE PROCESSING LINE HE SAID STEVEN KINSELLA MR ESPY'S PRESS SECRETARY SAID THAT THE PROPOSALS HAVEN'T BEEN DRAFTED OR CLEARED BY THE DEPARTMENT'S LAWYERS OR THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET HE ACKNOWLEDGED THAT THE RULEMAKING COULD TAKE SEVERAL MONTHS INCLUDING 60 DAYS FOR PUBLIC COMMENT AND THAT THE FINAL RULES COULD BE CHALLENGED IN COURT 9403100080 940310 NORTHROP WOOED GRUMMAN BEFORE MARIETTA ACCORD LOS ANGELES NORTHROP CORP EXPRESSED INTEREST IN MERGING WITH GRUMMAN CORP FOR MUCH OF THE LAST YEAR BUT FAILED TO HEAD OFF THIS WEEK'S 194 BILLION PURCHASE OF GRUMMAN BY MARTIN MARIETTA CORP ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GRUMMAN BASED IN BETHPAGE NY APPROACHED MARTIN MARIETTA IN EARLY FEBRUARY AND SECURED THE WINNING OFFER OF 55 A SHARE BY FEB 21 AFTER AGREEING TO EXCLUSIVE NEGOTIATIONS THE FILINGS BY GRUMMAN AND MARTIN MARIETTA SAID ON FEB 25 THE FILINGS SAID NORTHROP CHAIRMAN KENT KRESA SENT A LETTER TO GRUMMAN EXPRESSING CONSIDERABLE DISAPPOINTMENT THAT THE SELLER WANTED TO END THEIR TALKS AND OFFERED NOT LESS THAN 50 A SHARE AND THE PROSPECT OF AN OFFER AT A HIGHER LEVEL IF WARRANTED UNTIL THEN LOS ANGELESBASED NORTHROP HAD PRESSED FOR A MERGER OF EQUALS THAT INVOLVED AN EXCHANGE OF STOCK WITH NORTHROP AS THE SUCCEEDING CORPORATION GRUMMAN ADVISER GOLDMAN SACHS & CO HAD SUGGESTED ITS CLIENT COULD GET A HIGHER VALUE THAN THAT PROPOSED IN THE NORTHROP DISCUSSIONS THE PURCHASE WILL MAKE MARTIN MARIETTA BASED IN BETHESDA MD THE LARGEST US DEFENSEELECTRONICS COMPANY NORTHROP OFFICIALS COULDN'T BE REACHED FOR COMMENT YESTERDAY ON THE CONTENTS OF THE FILINGS THE SEC DOCUMENTS SAY THE MARTIN MARIETTA ACQUISITION IS EXPECTED TO BE COMPLETE BY MAY 18 9403100079 940310 BUSINESS BRIEF FNB ROCHESTER CORP AGENCY LIFTS CONSENT ORDER AGAINST PRINCIPAL SUBSIDIARY FNB ROCHESTER CORP AND THE FIRST NATIONAL BANK OF ROCHESTER THE BANK HOLDING COMPANY'S PRINCIPAL SUBSIDIARY SAID THE OFFICE OF THE COMPTROLLER OF THE CURRENCY PART OF THE US DEPARTMENT OF THE TREASURY LIFTED ITS CONSENT ORDER AGAINST THE BANK THE COMPANIES ROCHESTER NY SAID THE MOVE SHOWS THE OFFICE OF THE COMPTROLLER FOUND THE BANK HAS SUBSTANTIALLY COMPLIED WITH ITS CONSENT ORDER EXECUTED ON JUNE 9 1992 SATISFYING THE TECHNICAL REQUIREMENTS INSTITUTING NECESSARY CORRECTIVE ACTION IMPROVING CONTROLS AND RISKMANAGEMENT SYSTEMS AND STRENGTHENING MANAGEMENT AND BOARD SUPERVISION A SEPARATE CONSENT ORDER COVERING THE HOLDING COMPANY ISSUED BY THE FEDERAL RESERVE SYSTEM REMAINS IN FORCE 9403100078 940310 ABREAST OF THE MARKET STOCKS ARE MIXED AMID FED DATA SHOWING MILD ECONOMIC GROWTH BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES ENDED MIXED AMID A FEDERAL RESERVE BOARD REPORT SHOWING THAT THE ECONOMY EXPANDED MODERATELY IN THE FIRST TWO MONTHS OF 1994 THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 169 POINTS TO 385341 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ROSE 118 TO 46706 AND THE NASDAQ COMPOSITE INDEX EDGED UP 093 TO 79305 BUT DECLINING ISSUES OUTNUMBERED ADVANCERS 1098 TO 1034 NEW YORK STOCK EXCHANGE VOLUME SWELLED TO 309803000 SHARES FROM 298039000 TUESDAY THE MARKET IS TRYING TO GET BACK ON AN EVEN KEEL AFTER THE FIRST FED TIGHTENING OF SHORTTERM RATES AND IN ANTICIPATION OF THE NEXT FED MOVE SAID JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON STOCKS STARTED THE DAY HIGHER BUT QUICKLY TURNED LOWER AFTER BOND PRICES BEGAN TO SLIDE ON FEARS THAT THE FED'S BEIGE BOOK WOULD SHOW INFLATIONARY PRESSURES ACCELERATING BOND INVESTORS HATE INFLATION BECAUSE IT MAKES FIXEDINCOME SECURITIES LESS ATTRACTIVE BUT WHEN THE FED REPORTED THAT ONLY LIMITED PRICE PRESSURES EXIST IN THE ECONOMY BONDS STARTED TO STABILIZE PAVING THE WAY FOR A TURNAROUND IN STOCKS AMONG THE STRONGEST SECTORS OF THE MARKET WERE SEMICONDUCTOR STOCKS WHICH RALLIED ON A STRONG READING OF DEMAND ADVANCED MICRO DEVICES JUMPED 1 1/4 TO 22 3/4 INTEL 7/8 TO 71 5/8 AND APPLIED MATERIALS 1 1/8 TO 47 1/8 AUTO STOCKS ALSO RACED HIGHER CHRYSLER GAINED 1 1/4 TO 60 7/8 FORD 1 5/8 TO 65 3/8 AND GENERAL MOTORS 5/8 TO 62 5/8 THESE STOCKS WERE BUOYED BY A REPORT THAT JAPAN IS EXPECTED TO CLEAR THE WAY FOR CHRYSLER TO BOOST EXPORTS SHARPLY IN AN APPARENT EFFORT TO EASE GROWING TRADE FRICTION WITH THE US WHILE PROFIT GAINS WILL BE ROBUST BECAUSE OF INCREASED LABOR PRODUCTIVITY HE SAYS DIVIDEND GROWTH TENDS TO BE MORE CLOSELY CORRELATED WITH REVENUE GAINS WHICH AREN'T LIKELY TO BE AS HEALTHY A STEEP DROP IN SHARES OF INTERNATIONAL PAPER ACCOUNTED FOR THE UNDERPERFORMANCE OF THE INDUSTRIAL AVERAGE RELATIVE TO MOST OTHER MAJOR BAROMETERS ITS SHARES SLUMPED 2 3/4 TO 71 1/2 THE COMPANY HAS WARNED SOME ANALYSTS THAT THEIR FIRSTQUARTER EARNINGS ESTIMATES ARE TOO HIGH ITS STOCK MEANWHILE HAS SURGED IN RECENT SESSIONS OTHER FOREST PRODUCTS STOCKS SLIPPED GEORGIAPACIFIC LOST 1 3/4 TO 70 WESTVACO 7/8 TO 32 7/8 BOISE CASCADE 3/8 TO 26 3/8 AND WILLAMETTE INDUSTRIES 1/2 TO 57 ON THE NASDAQ STOCK MARKET TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS TOPPED THE BIG BOARD'S MOSTACTIVE LIST FOR A SECOND DAY SLIDING 1 7/8 TO 65 1/8 AFTER DROPPING 1 7/8 TUESDAY THE MEXICAN STOCK MARKET HAS BEEN WEAK FOR THE PAST TWO DAYS HURT IN PART BY JITTERS ABOUT POLITICS AHEAD OF THIS SUMMER'S PRESIDENTIAL ELECTIONS AMONG OTHER MEXICAN ADRS BUFETE INDUSTRIAL LOST 1 3/4 TO 39 3/4 GRUPO TRIBASA SLIPPED 3/8 TO 33 GRUPO CASA AUTREY EASED 3/4 TO 29 1/4 AND GRUPO FINANCIERO SERFIN DECLINED 1/4 TO 28 1/4 SUNAMERICA ADDED 1 TO 37 7/8 AFTER MERRILL LYNCH NAMED IT THE FIRM'S STOCK OF THE WEEK MERRILL RATES SHARES OF THE FINANCIAL SERVICES COMPANY A BUY BOTH FOR THE NEAR AND LONG TERM GERBER PRODUCTS SURGED 4 1/8 TO 32 7/8 AFTER CNBC REPORTED RUMORS THAT NESTLE MIGHT SEEK TO ACQUIRE THE COMPANY A SPOKESMAN FOR GERBER DECLINED TO COMMENT ON THE TALK HE SAID THE COMPANY DIDN'T KNOW ANY REASON FOR THE STOCK'S RISE NESTLE COULDN'T BE REACHED KELLOGG LOST 1 TO 48 1/4 THE COMPANY IS SAID TO HAVE TOLD ANALYSTS YESTERDAY MORNING THAT ITS FIRSTQUARTER EARNINGS WILL BE NEAR OR ABOVE THE 74 CENTS A SHARE IT POSTED FROM OPERATIONS A YEAR AGO ANALYSTS HAVE PROJECTED A PROFIT OF ABOUT 79 CENTS FOR THE LATEST PERIOD ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SHAW INDUSTRIES LOST 1 1/8 TO 18 5/8 AFTER CS FIRST BOSTON ANALYST SEAN LOVE TRIMMED HIS FORECAST FOR THE CARPET COMPANY'S THIRDQUARTER EARNINGS CITING RECENT POOR WEATHER CONDITIONS MR LOVE LOWERED HIS ESTIMATE TO 16 CENTS A SHARE FROM 20 CENTS SHAW EARNED 23 CENTS A YEAR AGO ITS THIRD QUARTER ENDS THIS MONTH HJ HEINZ LOST 5/8 TO 30 7/8 THE FOOD COMPANY SAID ITS NET INCOME FELL TO 50 CENTS A SHARE IN THE THIRD QUARTER ENDED JAN 26 DOWN FROM 62 CENTS LAST YEAR ANALYSTS HAD EXPECTED A PROFIT OF ABOUT 57 CENTS ACCORDING TO IBES GENERAL INSTRUMENT SLUMPED 2 5/8 TO 45 1/2 THE JUSTICE DEPARTMENT IS SAID TO BE REQUESTING INFORMATION FROM THE COMPANY AS PART OF A BROAD INQUIRY INTO MAKERS OF CABLE TELEVISION EQUIPMENT THE COMPANY DECLINED TO COMMENT CAPSTEAD MORTGAGE TUMBLED 4 3/4 TO 32 3/8 THE COMPANY WHICH INVESTS IN LONGTERM MORTGAGE LOANS SAID THE RECENT RISE IN INTEREST RATES MIGHT MAKE ITS EARNINGS FALL ABOUT 10 IN 1994 STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO SAID HE THINKS THE STOCK MARKET MIGHT CONTINUE THE RECOVERY IT BEGAN LAST WEDNESDAY AT LEAST FOR THE NEAR TERM THE MARKET WAS BATTERED IN FEBRUARY AT ITS LOW FOR THAT MONTH THE INDUSTRIAL AVERAGE WAS DOWN 56 FROM THE HIGH SET ON JAN 31 BUT LONGER TERM THERE IS A GREAT DEAL OF RISK MR GOLDMAN SAID HIGH VALUATIONS AND THE RISING INTEREST RATES SEEN OVER THE PAST MONTH ARE A TERRIBLE COMBINATION HE SAID SHAW INDUSTRIES INC A CARPET COMPANY HAD EARNINGS OF ROUGHLY 12 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER LAST YEAR AFTER ADJUSTMENT FOR A 2FOR1 STOCK SPLIT PAID IN DECEMBER IN YESTERDAY'S ABREAST OF THE MARKET COLUMN THE FIGURE WAS INCORRECTLY REPORTED AS 23 CENTS WHICH DOESN'T TAKE INTO ACCOUNT THE STOCK SPLIT 9403100077 940310 VULTURES' FIND SLIM PICKINGS IN EUROPE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL FACED WITH STIFFENING COMPETITION FOR US REALESTATE ASSETS US VULTURE INVESTMENT FUNDS ARE SHOPPING IN EUROPE BUT FINDING DEALS HASN'T BEEN EASY THE FUNDS ACCUSTOMED TO BUYING PROPERTY AND DELINQUENT LOANS FOR AS LITTLE AS 40 OR 50 OF ORIGINAL BOOK VALUE HAVE FOUND MOST EUROPEAN OWNERS UNWILLING TO SELL AT FIRESALE PRICES SO THEY ARE SEARCHING FOR OTHER WAYS TO CAPITALIZE ON THE TURNAROUND OF EUROPEAN MARKETS AMONG THE FIRMS CURRENTLY SEEKING EUROPEAN PROPERTY ARE GEORGE SOROS'S BRITISH LAND QUANTUM PROPERTY PARTNERSHIP LEON BLACK'S APOLLO REAL ESTATE INVESTMENTS COLONY CAPITAL INC GOLDMAN SACHS & CO AND MORGAN STANLEY & CO THE FUNDS BEGAN LOOKING IN EUROPE BECAUSE PRICES ON US REALESTATE PORTFOLIOS HAVE RISEN ENOUGH THAT PROFIT MARGINS ON AMERICAN DEALS ARE GETTING EATEN AWAY EXPLAINED RICHARD MULLY HEAD OF EUROPEAN REAL ESTATE FOR BANKERS TRUST NEW YORK CORP THE FUNDS SEE MORE OPPORTUNITY IN THE LONDON PARIS AND MADRID MARKETS HE SAID EUROPEAN OFFICE BUILDINGS HAVE FALLEN IN VALUE BY ABOUT ONETHIRD SINCE PEAKING IN EARLY 1991 ACCORDING TO AN INDEX COMPILED BY JONES LANG WOOTTON A LONDONBASED REALESTATE COMPANY BUT THE MARKET APPEARS TO BE BOTTOMING OUT THE FIRM SAID THE LAST ROUND OF NORTH AMERICAN INVESTMENT IN THE EUROPEAN PROPERTY MARKETS HAS GIVEN US INVESTORS PLENTY OF REASON TO BE CAUTIOUS CHICAGOBASED JMB REALTY CORP HAD A LOSS OF MORE THAN 400 MILLION ON ITS 1989 PURCHASE OF RANDSWORTH ACQUISITION LTD A BRITISH LAND COMPANY THAT WAS FORCED INTO RECEIVERSHIP IN 1992 AND CANARY WHARF OLYMPIA & YORK DEVELOPMENTS LTD'S CELEBRATED FORAY INTO THE LONDON OFFICE MARKET DROVE THE DEVELOPER INTO BANKRUPTCY COURT SOME OF THE SMARTEST NORTH AMERICAN INVESTORS HAVE GONE TO EUROPE AND COME BACK WITH THEIR TAILS BETWEEN THEIR LEGS NOTED WENDY LUSCOMBE WHO FOLLOWS THE BRITISH MARKET FOR ALDRICH EASTMAN & WALTCH A BOSTONBASED REALESTATE COMPANY I THINK THAT'S PROBABLY UNNERVED A LOT OF POTENTIAL INVESTORS TODAY'S BOTTOMFISHERS HAVING DEVELOPED A SYSTEM FOR VALUING PROPERTIES BASED ON CURRENT CASH FLOWS ARE CONFIDENT THAT THEY WON'T OVERPAY THE WAY PAST INVESTORS DID IN EUROPE THEY ARE FINDING HOWEVER THAT IT ISN'T POSSIBLE TO DO DEALS LIKE THEY'VE DONE IN THE US WHERE THEY'VE BEEN SNAPPING UP PORTFOLIOS AT STEEP DISCOUNTS THEN TURNING A QUICK PROFIT BY SELLING THEM OR RESTRUCTURING THEM ONE BY ONE THESE MARKETS IN EUROPE HAVE BEEN DEFINED BY STRONG RELATIONSHIPS FOR YEARS EXPLAINED THOMAS BARRACK JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COLONY IT'S NAIVE OF US TO THINK WE CAN GO IN AND BE SHREWDER ON AN EXPEDITED BASIS YOU HAVE TO BE WILLING TO BE IN THERE FOR SOME TIME I DON'T THINK THERE ARE GOING TO BE ANY QUICK PROFITS TO BE MADE IN EUROPE IN NOVEMBER CREDIT SUISSE OF ZURICH SOLICITED BIDS ON A PORTFOLIO OF LOANS IN LONDON AND BANKERS TRUST AND GOLDMAN SACHS ARE AMONG THE POTENTIAL BUYERS NEGOTIATING WITH THE BANK ACCORDING TO ONE PERSON INVOLVED IN THE TALKS BUT FEW BUYERS EXPECT MANY OF THESE AMERICANSTYLE PORTFOLIO SALES BECAUSE EUROPEAN GOVERNMENTS HAVEN'T BEEN PRESSURING BANKS AND INSURANCE COMPANIES AS US REGULATORS DID TO SHED REALESTATE ASSETS WHEN LOS ANGELESBASED COLONY BEGAN CALLING BRITISH BANKS IN SEARCH OF ASSETS RECALLED MR BARRACK IT FOUND THAT THE GOVERNMENT DIDN'T CREATE THE KIND OF PUNITIVE REGULATORY REQUIREMENTS THAT FORCED BANKS TO DUMP ASSETS AT REDUCED PRICES THE CHAIRMEN OF THE BANKS DON'T EVEN WANT TO TALK TO US ALTHOUGH THE SEVERE SLUMP IN THE PARIS PROPERTY MARKET HAS CAUGHT THE ATTENTION OF INVESTORS LITTLE HAS ACTUALLY BEEN OFFERED FOR SALE AT STEEP DISCOUNTS MR ANDERSON SAID THE LARGEST DISCOUNTS THAT HE HAS SEEN ARE 20 TO 30 OFF ORIGINAL BOOK VALUE SUBSTANTIALLY SMALLER THAN THE MARKDOWNS THAT INVESTORS HAVE ENJOYED IN THE US ANOTHER PROBLEM WITH THE FRENCH MARKET SAID MR BARRACK IS THAT THE TAX STRUCTURE MAKES IT DIFFICULT FOR INVESTORS TO RESELL ASSETS FOR A QUICK PROFIT BECAUSE MUCH OF EUROPE'S COMMERCIAL PROPERTY IS OWNED BY PUBLIC COMPANIES SOME INVESTORS HAVE DECIDED TO PLAY THE MARKET BY BUYING INTO THOSE COMPANIES IN FEBRUARY THE REALESTATE INVESTMENT FUND SET UP BY FINANCIER GEORGE SOROS AND BRITISH LAND CO ACQUIRED A 299 STAKE IN STANHOPE PROPERTIES A TROUBLED BRITISH DEVELOPER GIVING THE FUND A MAJOR STAKE IN BROADGATE ONE OF LONDON'S MOST SUCCESSFUL NEWOFFICE DEVELOPMENTS SEVERAL US INVESTORS INCLUDING MR SOROS AND COLONY ALSO TEAMED UP WITH EUROPEAN PARTNERS TO BID ON CIGA SPA AN ITALIAN LUXURYHOTEL CHAIN WITH 35 HOTELS AND MORE THAN 5500 ROOMS THROUGHOUT EUROPE ITT CORP'S SHERATON HOTEL CHAIN WAS TOP BIDDER AT ABOUT 530 MILLION DESPITE THE OBSTACLES THOUGH EUROPEAN REALESTATE EXPERTS EXPECT THE PACE OF US INVESTMENT TO PICK UP EVERYONE IN THE MARKET BELIEVES ITS GOING TO HAPPEN IN THE NEXT SIX MONTHS SAYS MR MULLY 9403100076 940310 BUSINESS BRIEF TOYS R' US INC COMPANY POSTS RECORD NET FOR QUARTER AND FISCAL 1994 CITING NEW MARKETING AND MERCHANDISING PROGRAMS TOYS R US INC REPORTED RECORD RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR THE PARAMUS NJ RETAIL TOY COMPANY SAID EARNINGS FOR THE QUARTER ENDED JAN 29 ROSE 10 TO 3745 MILLION OR 127 A SHARE FROM 3397 MILLION OR 114 A SHARE A YEAR AGO SALES WERE 389 BILLION UP 15 FROM 34 BILLION FOR THE YEAR SALES ROSE 11 TO 795 BILLION FROM 717 BILLION PROFIT ROSE 10 TO 483 MILLION OR 163 A SHARE FROM 4375 MILLION OR 147 A SHARE THE COMPANY ATTRIBUTED THE POSITIVE RESULTS IN PART TO SEVERAL NEW MARKETING AND MERCHANDISING INITIATIVES INCLUDING THE WIDER DISTRIBUTION OF ITS HOLIDAY TOY CATALOG EXPANSION OF SPECIALTY BOUTIQUES WITHIN ITS STORES AND CUSTOMER SERVICE INITIATIVES THE COMPANY HAS PLANS TO OPEN 45 NEW TOY STORES IN THE US AND 70 STORES INTERNATIONALLY AS WELL AS 10 NEW KIDS R US CHILDREN'S CLOTHING STORES 9403100074 940310 BUSINESS BRIEF HERITAGE MEDIA CORP HALLMARK TCI PLAN TO SELL 23 STAKE IN PUBLIC OFFERING HERITAGE MEDIA CORP'S TWO BIGGEST SHAREHOLDERS HALLMARK CARDS INC AND TELECOMMUNICATIONS INC FILED PLANS TO SELL THEIR COMBINED 23 STAKE IN A PUBLIC OFFERING THAT COULD TOTAL MORE THAN 300 MILLION HERITAGE A TELEVISION RADIO AND MARKETING CONCERN BASED IN DALLAS DISCLOSED LAST MONTH THAT HALLMARK THE KANSAS CITY MO GREETINGCARD CONCERN WAS CONSIDERING SELLING ITS 157 INTEREST TCI THE ENGLEWOOD COLO CABLETV GIANT SUBSEQUENTLY DECIDED TO OFFER ITS 76 STAKE AS WELL THE LEAD UNDERWRITER IS CS FIRST BOSTON INC ASSUMING THE EXERCISE OF AN OVERALLOTMENT OPTION GRANTED TO THE UNDERWRITERS HALLMARK AND TCI WILL SELL A TOTAL OF 41 MILLION COMMON SHARES HERITAGE HAS ABOUT 175 MILLION SHARES OUTSTANDING THE SALE BY HALLMARK AND TCI WILL LEAVE HERITAGE'S CHAIRMAN JAMES M HOAK AS THE COMPANY'S BIGGEST SHAREHOLDER A HERITAGE SPOKESMAN SAID MR HOAK AND OTHER MANAGERS OWN A ROUGHLY 10 STAKE HERITAGE MEDIA CORP'S TWO BIGGEST SHAREHOLDERS FILED PLANS TO SELL THEIR COMBINED 23 STAKE IN A PUBLIC OFFERING THAT COULD TOTAL MORE THAN 70 MILLION AN ARTICLE YESTERDAY INCORRECTLY VALUED THE OFFERING AT MORE THAN 300 MILLION 9403100072 940310 BUSINESS BRIEF MESA AIRLINES CCAIR ACQUISITION SOUGHT IN DEAL VALUED AT 32 MILLION MESA AIRLINES SAID IT OFFERED TO ACQUIRE ANOTHER REGIONAL AIRLINE CCAIR INC IN A STOCK TRANSACTION VALUED AT ABOUT 32 MILLION UNDER TERMS OF THE OFFER MESA SAID IT WOULD EXCHANGE ABOUT 15 MILLION MESA SHARES FOR THE ROUGHLY SEVEN MILLION CCAIR SHARES OUTSTANDING VALUING THEM AT ABOUT 450 A SHARE CCAIR OF CHARLOTTE NC SAID ITS BOARD WAS STUDYING MESA'S OFFER JONATHAN ORNSTEIN A MESA EXECUTIVE VICE PRESIDENT SAID HE HOPES THE DIRECTORS WILL VIEW THE OFFER FAVORABLY CCAIR FLIES IN THE SOUTHEAST WHILE MESA FLIES UNDER A NUMBER OF NAMES IN VARIOUS REGIONS IN LATE NASDAQ STOCK MARKET TRADING MESA SHARES WERE TRADING AT 2125 DOWN 50 CENTS CCAIR STOCK WAS UP 125 CENTS AT 4375 9403100071 940310 SMALL STOCK FOCUS RUSSELL INDEX DECLINES A BIT TO 26644 AFTER FOLLOWING BOND MARKET'S SWINGS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A CHOPPY BOND MARKET SESSION LEFT SMALLCOMPANY STOCKS MODERATELY LOWER FOR A SECOND STRAIGHT DAY THE TREASURY'S LONG BOND ENDED MORE THAN 3/8 POINT FIRMER DEPRESSING ITS YIELD TO 683 BONDS STARTED THE DAY HIGHER PULLED BACK AND THEN CLIMBED HIGHER ON THE HEELS OF THE FEDERAL RESERVE'S BEIGE BOOK REPORT WHICH SHOWED LITTLE INFLATIONARY PRESSURE EQUITIES HAVE BEEN TRACKING GOVERNMENT SECURITIES FOR WEEKS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ENDED 012 POINTS OR 005 LOWER AT 26644 THE BAROMETER TRADED IN A RANGE BETWEEN 26573 AND 26701 A FAIRLY WIDE SWING ADVANCERS SURPASSED DECLINING NASDAQ ISSUES 1550 TO 1476 ON NASDAQ NATIONAL MARKET VOLUME OF 270511250 SHARES AND TOTAL VOLUME OF 316898000 THAT COMPARES TO TUESDAY'S NATIONAL MARKET VOLUME OF 260297600 SHARES AND OVERALL TURNOVER OF 304660000 MEANWHILE THE SEMICONDUCTOR INDUSTRY'S FEBRUARY BOOKTOBILL RATIO RELEASED LATE TUESDAY HAD A POSITIVE EFFECT ON MANY TECHNOLOGY STOCKS THOUGH SOME SMALLER CHIP MAKERS FINISHED LOWER THE RATIO ROSE TO 115 LAST MONTH FROM A REVISED FIGURE OF 110 FOR JANUARY KOMAG A MILPITAS CALIF DISKDRIVE DEVELOPER ROSE 1 1/4 TO 26 WALL DATA A REDMOND WASH SOFTWARE FIRM JUMPED 4 1/4 TO 55 1/2 AND FILENET A COSTA MESA CALIF DOCUMENTIMAGING FIRM ADDED 1 1/4 TO 26 THOUGH LARGECAP SEMICONDUCTOR STOCKS SUCH AS INTEL CORP AND NEW YORK STOCK EXCHANGETRADED MICRON TECHNOLOGY ROSE ON THE HEELS OF THE BOOKTOBILL RATIO AND RATING UPGRADES FROM KIDDER PEABODY & CO SOME SMALLER CHIP ISSUES SLUMPED FOR A SECOND CONSECUTIVE SESSION TRADERS SAID THESE STOCKS CONTINUE TO LOSE GROUND AFTER THEY RAN UP LAST WEEK ON EXPECTATIONS THAT THE SEMICONDUCTOR INDUSTRY INDICATOR WOULD RISE KLA INSTRUMENTS SAN JOSE CALIF DROPPED 2 TO 39 1/4 NOVELLUS SYSTEMS ALSO OF SAN JOSE DECLINED 1 1/4 TO 40 3/4 AND CYRIX RICHARDSON TEXAS FELL 1/2 TO 30 1/2 ALL THREE STOCKS ALSO LOST GROUND TUESDAY SCICLONE PHARMACEUTICALS SAN MATEO CALIF FELL 1 1/8 TO 15 5/8 MARKET WATCHERS SPECULATED THAT CAUTIOUS INVESTORS ARE SELLING THE STOCK AHEAD OF THE RELEASE OF DATA EXPECTED BY JUNE FROM A KEY STUDY OF THE HEPATITIS B DRUG THYMOSIN ALPHA 1 THE FINDINGS FROM A 99PATIENT TRIAL OF THE COMPANY'S LEADPRODUCT CANDIDATE ARE LIKELY TO HAVE A BIG EFFECT ON SCICLONE'S FORTUNES NEW ISSUE JUST FOR FEET JUMPED TO 15 1/4 FROM ITS OFFERING PRICE OF 14 A SHARE THE BIRMINGHAM ALA ATHLETIC AND OUTDOORFOOTWEAR RETAILER SAID PROCEEDS WILL BE USED TO FINANCE NEW STORE OPENINGS AND FOR GENERAL CORPORATE PURPOSES IN MERGER NEWS THOMSON ADVISORY GROUP JUMPED 3 1/2 TO 38 1/4 ON THE NEW YORK STOCK EXCHANGE THE STAMFORD CONN FIRM AND PACIFIC MUTUAL LIFE INSURANCE HAVE SIGNED AN AGREEMENT IN PRINCIPLE TO RECAPITALIZE THOMSON AND MERGE IT WITH FIVE PACIFIC MUTUAL INVESTMENT MANAGEMENT SUBSIDIARIES SANDY GAINED 1 TO 7 1/2 ON THE AMERICAN STOCK EXCHANGE WESTCOTT COMMUNICATIONS SAID IT IS DISAPPOINTED AND SURPRISED THAT SANDY'S BOARD HAS REJECTED WESTCOTT'S UNSOLICITED MERGER PROPOSAL AND IS UNWILLING TO DISCUSS THE MERGER FURTHER BUT WESTCOTT BASED IN CARROLLTON TEXAS WHICH SLIPPED 1 1/4 TO 22 SAID IT IS WILLING TO HEAR ANY CONCERNS SANDY MIGHT HAVE REGARDING THE PROPOSAL OMEGA ENVIRONMENTAL ROSE 1 1/4 TO 12 1/2 THE BOTHELL WASH COMPANY SAID IT HAS RECEIVED CONTRACTS TO PROVIDE SERVICES AND PRODUCTS RELATING TO UNDERGROUND STORAGE TANKS AT 283 SITES FOR THREE MAJOR CONVENIENCESTORE CHAINS IN FLORIDA GEORGIA LOUISIANA MISSISSIPPI ALABAMA OHIO AND INDIANA AN INITIAL STRONG BUY RATING FROM ROBERTSON STEPHENS & CO ANALYST THOMAS HODAPP BOOSTED UNITED AMERICAN HEALTHCARE 1 5/8 TO 19 3/4 ON THE BIG BOARD THE DETROIT CONCERN PROVIDES MANAGEMENT MARKETING AND ADMINISTRATIVE SERVICES TO PUBLIC AND PRIVATE HEALTHCARE SYSTEMS COMMUNITY HEALTH SYSTEMS ROSE 1 3/4 TO 23 3/4 ROBERTSON STEPHENS ANALYST SHERYL SKOLNICK PUT AN INITIAL BUY RATING ON THE HOUSTON COMPANY'S SHARES XRITE ROSE 1 1/2 TO 23 3/4 THE GRANDVILLE MICH COMPANY SAID IT RECEIVED TWO TWOYEAR CONTRACTS TOTALING 42 MILLION TO SUPPLY COLORMATCHING INSTRUMENTS TO TWO NATIONAL RETAIL CHAIN STORES BIG BOARDTRADED EXIDE SET A NEW HIGH OF 37 1/2 AFTER A 3 1/2POINT JUMP ON HEAVY VOLUME OF 17 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 31700 AN OFFICIAL AT THE BLOOMSFIELD HILLS MICH BATTERIES COMPANY SAID THE ADVANCE FOLLOWS A WEEKANDAHALFLONG ROAD SHOW FOR SHARES PRICED TUESDAY THE MEETINGS PRECEDED AN OFFERING OF 39 MILLION SHARES PRICED AT 34 EACH THAT BEGAN TRADING YESTERDAY SPARTAN MOTORS OF CHARLOTTE MICH DROPPED 1 1/8 TO 20 1/2 THE CHASSIS MAKER SAID ITS FOURTHQUARTER EARNINGS FELL TO 17 CENTS A SHARE FROM 20 CENTS A SHARE A YEAR EARLIER 9403100070 940310 US BOSNIAPEACEKEEPING CONTINGENT OF 25000 IS FORECAST BY SHALIKASHVILI BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US SHOULD EXPECT TO CONTRIBUTE ABOUT HALF THE 50000 TROOPS THAT PROBABLY WOULD BE NEEDED TO MONITOR A PEACE AGREEMENT IN BOSNIA THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SAID MORE IMMEDIATELY THE US IS CONTEMPLATING NEARLY DOUBLING THE NUMBER OF AMERICAN TROOPS ALREADY DEPLOYED IN MACEDONIA RAISING THE US COMMITMENT THERE TO SOME 500 PEACEKEEPERS ADMINISTRATION OFFICIALS SAID JOINT CHIEFS CHAIRMAN JOHN SHALIKASHVILI'S COMMENTS ARE SIGNIFICANT BECAUSE THEY CONTRADICT RECENT ASSERTIONS BY STATE DEPARTMENT AND WHITE HOUSE OFFICIALS THAT FAR FEWER THAN 50000 TROOPS WOULD BE NEEDED TO ENFORCE A PEACE SETTLEMENT THOSE OFFICIALS HAVE ALSO SUGGESTED THAT THE US WOULD CONTRIBUTE ONLY ABOUT ONETHIRD OF THE TROOPS FOR THE PEACEKEEPING FORCE WHICH WILL BE DRAWN FROM NORTH ATLANTIC TREATY ORGANIZATION MEMBERS GEN SHALIKASHVILI'S REMARKS EFFECTIVELY TOOK PUBLIC THE CLINTON ADMINISTRATION'S INTERNAL DEBATE OVER THE POTENTIAL US PEACEKEEPING EFFORT WHILE THE POLITICAL SIDE OF THE ADMINISTRATION IS HOPING TO WIN CONGRESSIONAL APPROVAL BY EMPHASIZING THE COMPARATIVELY SMALL SIZE OF THE COMMITMENT MILITARY PLANNERS ARE MORE CONCERNED ABOUT SENDING A FORCE LARGE ENOUGH TO DETER POTENTIAL CHALLENGERS AS WELL AS TO ENSURE US COMMAND OF THE MULTINATIONAL EFFORT WE MUST GUARD AGAINST SENDING LESS BECAUSE WE THINK THAT'S POLITICALLY MORE SALABLE GEN SHALIKASHVILI SAID AT A BREAKFAST WITH DEFENSE REPORTERS BUT HE ADDED I THINK WE HAVE AN AWFUL LOT OF EXPLAINING TO DO TO MAKE THE CASE TO THE AMERICAN PUBLIC ABOUT WHY US TROOPS SHOULD BE INVOLVED IN KEEPING A BOSNIAN PEACE A SENIOR WHITE HOUSE OFFICIAL EXPRESSED PUZZLEMENT WHY GEN SHALIKASHVILI WAS STILL USING THE 50000 FIGURE WHICH WAS FIRST PROPOSED LAST YEAR WHEN PEACE NEGOTIATIONS WERE FOCUSED ON DIVIDING BOSNIA INTO 10 SEPARATE ETHNIC ENCLAVES THE CURRENT PEACE PLAN CHAMPIONED BY THE ADMINISTRATION WOULD DIVIDE BOSNIA INTO TWO REPUBLICS ONE COMPOSED OF MUSLIMS AND CROATS AND ANOTHER OF BOSNIAN SERBS IT IS A HELL OF A LOT SIMPLER MAP WE ARE LOOKING AT NOW THAN LAST SEPTEMBER THE AIDE SAID AND I CAN'T IMAGINE IT WOULD REQUIRE THE SAME DEGREE OF COMMITMENT IT ALMOST SOUNDS LIKE A TIMEWARP ANSWER WITH THE US NOW DEEPLY ENGAGED IN DIPLOMATIC NEGOTIATIONS TO END THE BOSNIAN WAR THE DEBATE OVER US PEACEKEEPERS HAS TAKEN ON A NEW URGENCY AT LEAST WITHIN THE ADMINISTRATION CHARLES REDMAN THE SPECIAL US ENVOY TO THE FORMER YUGOSLAVIA WHO HAS BEEN SHUTTLING BETWEEN BOSNIA CROATIA AND SERBIA SAID YESTERDAY WE HAVE MADE AN ENORMOUS AMOUNT OF PROGRESS TOWARD PEACE OVER THE LAST MONTH ACCORDING TO WIRE REPORTS AS A FURTHER SIGN OF US COMMITMENT THE ADMINISTRATION HAS DISPATCHED RETIRED US ARMY GEN JOHN GALVIN A FORMER COMMANDER OF NATO TO OBSERVE THE PEACE TALKS AND HELP SHAPE AN AGREEMENT THAT IS MILITARILY ENFORCEABLE GEN SHALIKASHVILI SAID THAT EARLIER PEACE PLANS CONTAINED ELEMENTS THAT COULD HAVE HAMPERED PEACEKEEPERS SUCH AS A REQUIREMENT THAT TROOP MOVEMENTS BE NEGOTIATED IN ADVANCE WITH THE PARTIES ON THE GROUND GEN SHALIKASHVILI SAID SUCH A REQUIREMENT IS ABSOLUTE NONSENSE PRELIMINARY CONTACTS WITH BOSNIA'S SERBS WHO CONTROL 70 OF THE TERRITORY OF BOSNIA AND ARE THE MAIN AGGRESSORS IN THE WAR HAVEN'T BEEN SUCCESSFUL THEY'RE LISTENING THAT'S ALL WE CAN SAY SAID THE SENIOR WHITE HOUSE OFFICIAL US OFFICIALS ARE HOPING THAT WITH TIME AND PRESSURE FROM RUSSIA THE SERBS WILL COME AROUND BOSNIA'S PRIME MINISTER HARIS SILAJDIZIC DISCUSSED THE PEACE PLAN YESTERDAY IN MOSCOW WITH RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WITH A PEACE SETTLEMENT IN BOSNIA AT BEST STILL SEVERAL MONTHS AWAY THE UNITED NATIONS IS APPEALING FOR MORE TROOPS TO HELP EXTEND A CURRENT CEASEFIRE AROUND SARAJEVO TO OTHER SAFE AREAS THE CLINTON ADMINISTRATION HAS REFUSED TO SEND ANY US GROUND TROOPS TO BOSNIA UNTIL A PEACE AGREEMENT IS SIGNED ITS EXPECTED OFFER OF ABOUT 200 ADDITIONAL PEACEKEEPERS FOR MACEDONIA IS CLEARLY INTENDED TO TAKE SOME OF THE STING OUT OF THAT REFUSAL THE US TROOPS WOULD REPLACE NORDIC PEACEKEEPERS WHO WOULD THEN BE AVAILABLE FOR SERVICE IN BOSNIA BRITAIN'S UN AMBASSADOR SIR DAVID HANNAY YESTERDAY HOSTED AN INFORMAL TROOP PLEDGING MEETING IN NEW YORK AND GOT SOME POSITIVE RESPONSES FRANCE SAID THAT IT WOULD TEMPORARILY SEND AN ADDITIONAL 800 TROOPS TO BOSNIA BRITAIN IS EXPECTED TO PLEDGE A SIMILAR NUMBER WHILE RUSSIA SPAIN AND UKRAINE ALL INDICATED THEIR INTENTION TO SEND A SMALL NUMBER OF ADDITIONAL TROOPS THERE ARE CURRENTLY A TOTAL OF ABOUT 1000 PEACEKEEPERS IN MACEDONIA TURKEY HAS ALSO OFFERED TO SEND 1000 PEACEKEEPERS THE OFFER MAY OR MAY NOT BE ACCEPTED BY UN SECRETARY GENERAL BOUTROS BOUTROSGHALI WHO UNTIL NOW HAS INSISTED ON EXCLUDING ANY COUNTRY WITH A HISTORICAL INTEREST IN THE BALKANS BOSNIA'S UN AMBASSADOR MOHAMED SACIRBEY SAID THAT SUCH A RULE WAS ALREADY VIOLATED BY THE RECENT PLACEMENT OF RUSSIAN TROOPS IN BOSNIA AND EXPRESSED HOPE THAT THE TURKISH OFFER WOULD BE ACCEPTED 9403100068 940310 LETTERS TO THE EDITOR A DISGRACEFUL STORY I AM SICKENED THAT YOU CHOSE TO HIGHLIGHT ON YOUR FEB 3 PAGE ONE HOW A NICE GIRL EVOLVED INTO BOSS THE GANGSTER RAPPER WHO MUSES ALOUD ABOUT KILLING SOMEONE ANYONE I HAVE A WIFE AND TWO VERY YOUNG CHILDREN I STARTED MY BUSINESS SIX YEARS AGO WE ARE WORKING HARD TO ENSURE THE SECURITY OF OUR FAMILY INCLUSIVE OF THE VALUES OF FAMILY FAITH LOVE SHARING AND SACRIFICE ALL FOR ACHIEVING THE GREATER GOOD YOUR HIGHLIGHTING OF THIS PERSON'S DISGRACEFUL BEHAVIOR HAS MADE ME FEEL THAT I AND OTHERS LIKE ME ARE BEING CUT OFF AT THE FEET 9403100067 940310 BUSINESS BRIEF PETROLEUM HEAT & POWER CO NET ROSE 74 IN 4TH PERIOD CONCERN CITES REDUCED COSTS PETROLEUM HEAT & POWER CO SAID REDUCED COSTS AND MARKETING EXPENSES HELPED PUSH FOURTHQUARTER EARNINGS 74 HIGHER FOR THE QUARTER THE STAMFORD CONN HEATINGOIL DISTRIBUTOR REPORTED NET INCOME OF 89 MILLION OR 41 CENTS A SHARE COMPARED WITH NET INCOME OF 51 MILLION OR 22 CENTS A SHARE REVENUE DECLINED 6 TO 1611 MILLION FROM 1715 MILLION THE COMPANY SAID FOURTH QUARTER 1993 WINTER WEATHER IN ITS NORTHEASTERN MARKETS WAS ACTUALLY WARMER THAN 1992 THE BRUTAL WINTER WEATHER DIDN'T AFFECT THE COMPANY'S MARKETS UNTIL MIDDECEMBER IN NASDAQ STOCK MARKET TRADING THE COMPANY'S CLASS A SHARES ROSE 125 CENTS TO 850 FOR THE YEAR ITS NET LOSS WIDENED TO 84 MILLION OR 57 CENTS A SHARE FROM A LOSS OF 44 MILLION OR 81 CENTS A SHARE IN 1992 REVENUE ROSE 51 TO 5385 MILLION 9403100065 940310 BUSINESS BRIEF NEW PLAN REALTY TRUST ACQUISITIONS EXPECTED TO LIFT EARNINGS BY 22 IN QUARTER NEW PLAN REALTY TRUST SAID THAT IT EXPECTS ACQUISITIONS OF SHOPPING CENTERS AND RETAIL PROPERTIES TO BOOST FISCAL SECONDQUARTER EARNINGS ABOUT 22 AND THAT IT PLANS TO TAP THE PUBLIC DEBT MARKET TO RAISE AT LEAST 100 MILLION FOR ADDITIONAL ACQUISITIONS WILLIAM NEWMAN CHAIRMAN AND CHIEF EXECUTIVE OF THE NEW YORKBASED REAL ESTATE INVESTMENT TRUST ONE OF THE NATION'S LARGEST SAID NET INCOME FOR THE QUARTER THAT ENDED JAN 31 WOULD BE ABOUT 129 MILLION OR 26 CENTS A SHARE UP FROM 106 MILLION OR 22 CENTS A SHARE IN THE YEAREARLIER PERIOD FUNDS FROM OPERATIONS CONSIDERED BY ANALYSTS A MORE ACCURATE MEASURE OF PROFITABILITY WILL RISE 27 TO ABOUT 152 MILLION OR 31 CENTS A SHARE FROM 12 MILLION OR 25 CENTS A SHARE A YEAR AGO THE MEASURE IS INCOME BEFORE DEPRECIATION AND DEFERRED TAXES WE EXPECT INCOME IN THE THIRD AND FOURTH FISCAL QUARTER TO BE BETTER THAN THE PRECEDING TWO QUARTERS AS MORE PROPERTIES COME ON LINE SAID MR NEWMAN NEW PLAN WHICH CURRENTLY PAYS QUARTERLY DIVIDENDS OF 33 CENTS USUALLY RAISES THE AMOUNT ABOUT ONE CENT A YEAR AND EXPECTS THAT PATTERN TO CONTINUE 9403100064 940310 INTERNATIONAL FRANCE PLANS TO SELL MACHINES BULL IN BID TO APPEASE THE EU PARIS THE FRENCH GOVERNMENT UNEXPECTEDLY ANNOUNCED PLANS TO PRIVATIZE UNPROFITABLE COMPUTER MAKER CIE DES MACHINES BULL IN AN APPARENT BID TO APPEASE EUROPEAN UNION OFFICIALS WHO HAVE BEEN CRITICAL OF GENEROUS STATE HANDOUTS TO THE COMPANY AT THE SAME TIME ECONOMICS MINISTER EDMOND ALPHANDERY SAID YESTERDAY THAT THE GOVERNMENT ALSO PLANNED TO SOON SELL STATEOWNED INSURER ASSURANCES GENERALES DE FRANCE IN ORDER TO RAISE FUNDS TO RECAPITALIZE A NUMBER OF OTHER NATIONALIZED COMPANIES MR ALPHANDERY DID NOT NAME THE LIKELY RECIPIENTS OF THE ESTIMATED 23 BILLION FRENCH FRANCS 395 BILLION THAT THE AGF SALE COULD RAISE BUT OTHER GOVERNMENT OFFICIALS SUGGESTED THAT AIR FRANCE WOULD TOP THE LIST THE GOVERNMENT IS ALSO STUDYING A CAPITAL INCREASE FOR YET ANOTHER UNPROFITABLE FRENCH STATEOWNED COMPANY RETAIL BANKING GROUP CREDIT LYONNAIS SINCE IT CAME TO POWER LAST SPRING FRANCE'S RIGHTWING GOVERNMENT HAS SOLD OFF A NUMBER OF ITS HEALTHIER COMPANIES INCLUDING OIL PRODUCER ELF AQUITAINE PHARMACEUTICAL MAKER RHONE POULENC AND THE BANQUE NATIONALE DE PARIS BANKING GROUP RAISING MORE THAN 75 BILLION FRANCS SO FAR FROM INSTITUTIONAL AND RETAIL INVESTORS IN FRANCE AND ABROAD THE SALE OF FRANCE'S LARGEST INSURANCE GROUP UNION DES ASSURANCES DE PARIS IS DUE TO FOLLOW SHORTLY NEITHER THE DATE NOR THE PRICE HAVE BEEN FIXED YET BUT THE UAP SALE IS EXPECTED TO RAISE ABOUT 25 BILLION FRANCS THE GOVERNMENT'S PLANS FOR BULL COME AS A SURPRISE BECAUSE THE COMPUTER MAKER'S HEAVY LOSSES IN RECENT YEARS WOULD MAKE IT AN UNATTRACTIVE OPTION FOR MOST INVESTORS ALSO SOME GOVERNMENT MINISTERS HAD BEEN PUSHING FOR CAR MAKER RENAULT SA TO BE SOLD NEXT 9403100063 940310 MARKETING & MEDIA REDSTONE MEETINGS LEAD TO SPECULATION ON PARAMOUNT POST BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL MAKING THE ROUNDS IN HOLLYWOOD THIS WEEK AFTER GAINING CONTROL OF PARAMOUNT COMMUNICATIONS INC VIACOM INC CHAIRMAN SUMNER REDSTONE HAS CAUSED A BLIZZARD OF SPECULATION ABOUT POSSIBLE CANDIDATES TO HEAD THE STRUGGLING STUDIO MOVING TO ASSEMBLE A NEW MANAGEMENT TEAM MR REDSTONE HAS BEEN MEETING WITH HOLLYWOOD EXECUTIVES AND SEEKING OUT NAMES OF POTENTIAL CANDIDATES FOR THE POST OF STUDIO CHAIRMAN BUT FOR NOW HOLLYWOOD EXECUTIVES EMPHASIZED MR REDSTONE ISN'T CLOSE TO HIRING ANY OF THE RUMORED CANDIDATES OR OTHERS WHOSE NAMES MIGHT NOT HAVE YET SURFACED ONE SENIOR INDUSTRY OFFICIAL SAID MR REDSTONE IS OUT MEETING WITH THE WORLD IN AN EFFORT TO COMPILE A LIST OF CANDIDATES SAID A FORMER PARAMOUNT EXECUTIVE IT REALLY IS A HOLLYWOOD GUESSING GAME VIACOM WHICH LAST MONTH PREVAILED IN A FIVEMONTH BIDDING WAR FOR PARAMOUNT AGAINST QVC INC OFFICIALLY GAINED CONTROL OF THE COMPANY LAST WEEK PARAMOUNT'S HOLLYWOOD OPERATIONS WERE OVERSEEN FROM NEW YORK BY STANLEY R JAFFE PRESIDENT OF THE PARENT COMPANY BUT MR JAFFE DURING WHOSE THREEYEAR REIGN THE STUDIO REMAINED MIRED IN A BOXOFFICE SLUMP IS LEAVING THE COMPANY UNDER MR JAFFE THE MOTIONPICTURE OPERATIONS WERE RUN BY SHERRY LANSING HIS LONGTIME MOVIEPRODUCER PARTNER BEFORE THE TWO JOINED PARAMOUNT THE TELEVISION OPERATIONS MEANWHILE WERE RUN BY KERRY MCCLUGGAGE AS A RESULT OF MR REDSTONE'S HIGHPROFILE AND WHIRLWIND SOJOURN HOWEVER THE HOLLYWOOD RUMOR MILL IS RUNNING AT FULL SPEED CHURNING OUT SEVERAL NAMES FOR THE JOB AMONG THEM ARE MICHAEL FUCHS CHAIRMAN OF TIME WARNER INC'S HBO UNIT JONATHAN DOLGEN PRESIDENT OF SONY CORP'S SONY PICTURES ENTERTAINMENT JEFF SAGANSKY PRESIDENT OF CBS INC'S CBS ENTERTAINMENT UNIT AND ARTHUR R BARRON A FORMER PARAMOUNT EXECUTIVE AND CURRENT CHAIRMAN OF TIME WARNER INC'S TIME WARNER INTERNATIONAL NONE OF THE EXECUTIVES OR VIACOM OFFICIALS COULD BE REACHED FOR COMMENT BUT MR DOLGEN FOR ONE RECENTLY SIGNED A CONTRACT EXTENSION WITH SONY AND HOLLYWOOD INSIDERS SAID IT WAS UNLIKELY THE JOB WOULD BE ACCEPTED BY MR FUCHS WHOSE HBO HAS HAD CONTENTIOUS RELATIONS IN THE PAST WITH ARCHRIVAL SHOWTIME A VIACOM UNIT IT IS UNCLEAR WHETHER MR REDSTONE WILL REPLACE MS LANSING AS CHAIRMAN OF THE MOTION PICTURE DIVISION OR WHETHER HE WILL NAME AN EXECUTIVE TO HEAD THE OVERALL STUDIO WHICH WOULD INCLUDE THE MOTIONPICTURE DIVISION AND THE TELEVISION OPERATIONS ONE TOP INDUSTRY EXECUTIVE HOWEVER SPECULATED THAT SHE WOULD REMAIN AT THE STUDIO 9403100062 940310 LETTERS TO THE EDITOR WE'RE LOSING HEALTHCARE CHOICE NOW IN HIS FEB 8 EDITORIALPAGE ARTICLE SEN PHIL GRAMM CLAIMS THAT THE CLINTON HEALTH CARE PLAN ELIMINATES THE BASIC ELEMENTS OF FREE CHOICE AND SUGGESTS THAT UNLESS YOU ARE ONE OF THE PRIVILEGED FEW WHO WORK FOR THE GOVERNMENT OR FOR HUGE COMPANIES THAT EMPLOY MORE THAN 5000 PEOPLE YOU WILL LOSE THAT CHOICE OF YOUR OWN DOCTOR OR HEALTH CARE PLAN HAD HE READ THE ARTICLES ON THE JOURNAL'S PAGE ONE IN RECENT WEEKS HE WOULD HAVE DISCOVERED THAT IT IS OUR CURRENT HEALTH CARE SYSTEM THAT IS TAKING AWAY PEOPLE'S RIGHT TO CHOOSE THEIR OWN DOCTORS CURRENTLY FEDERAL WORKERS INCLUDING SENATORS ARE THE PRIVILEGED ONES WHO RECEIVE A LARGE MENU OF PRIVATE PLANS FROM WHICH THEY CAN CHOOSE EACH YEAR WHY SHOULD THEY BE SO LUCKY UNDER THE HEALTH SECURITY ACT EVERYONE WILL BE ABLE TO CHOOSE AMONG A RANGE OF OPTIONS HMOS HEALTH CARE NETWORKS AND FEEFORSERVICE PLANS LIKE BLUE CROSS/BLUE SHIELD FEDERAL WORKERS ALSO INCLUDING SENATORS WILL GET EXACTLY THE SAME CHOICES AS EVERYONE ELSE IN FACT UNTIL MY BILL TO END FREE HEALTH CARE FOR MEMBERS OF CONGRESS BY THE CAPITOL PHYSICIAN WAS PUT INTO EFFECT BY HOUSE AND SENATE LEADERS IN 1992 SEN GRAMM AND HIS COLLEAGUES DID ENJOY PRIVILEGES CLEARLY NOT AVAILABLE TO OTHER AMERICANS BUT NOT ANYMORE SEN GRAMM SEEMS TO BE BLIND TO THE REALITY OF WHAT'S HAPPENING TO MOST PEOPLE TODAY THE JOURNAL OF FEB 10 WOULD HAVE ENLIGHTENED HIM FOR ALL THE EMOTION AND RHETORIC THE FREEDOM TO CHOOSE A DOCTOR NOT ONLY HAS BEEN SHARPLY DIMINISHED ALREADY BUT IS CERTAIN TO ERODE FURTHER THE JOURNAL REPORTED AS MORE EMPLOYERS LOWER COSTS BY RESTRICTING OPTIONS FROM 1988 TO 1993 THE PERCENTAGE OF PEOPLE ENROLLED BY THEIR EMPLOYER IN FEEFORSERVICE HEALTH PLANS PLUMMETED TO 49 FROM 71 ACCORDING TO RESEARCH BY KPMG PEAT MARWICK SEN GRAMM AND HIS COLLEAGUES LOVE TO CITE THE CONGRESSIONAL BUDGET OFFICE TESTIMONY ABOUT THE PROJECTED COSTS OF THE HEALTH SECURITY ACT ALTHOUGH THEY DON'T LIKE TO NOTE DR REISCHAUER'S CONCLUSIONS THAT THE BILL WOULD ULTIMATELY SAVE THE ECONOMY SOME 337 BILLION OVER THE NEXT NINE YEARS OR THAT OTHER REFORM PROPOSALS ARE LIKELY TO COST EVEN MORE SEN GRAMM SHOULD AT LEAST BE SURE TO NOTE DR REISCHAUER'S TESTIMONY THAT THE VAST MAJORITY OF AMERICANS WOULD HAVE MORE IN THE WAY OF CHOICE UNDER THE PRESIDENT'S PLAN THAN THEY CURRENTLY HAVE THEY WILL BE CHOOSING FROM A MENU OF PLANS THAT ARE OFFERED BY THEIR REGIONAL ALLIANCE MOST OF US CAN ONLY CHOOSE THOSE PLANS THAT OUR EMPLOYER PUTS IN FRONT OF US OFTEN OUR EMPLOYER PUTS ONE PLAN IN FRONT OF US AND SAYS THIS IS IT OR NOTHING IN THIS ENVIRONMENT CREATED BY THE PRESIDENT'S PROPOSAL MY CHOICE IS NOT AFFECTED BY WHERE I WORK AT ALL THAT IS I THINK AN INCONTROVERTIBLE FACT SEN GRAMM ALSO FAILS TO MENTION THAT HIS OWN SOCALLED MEDICAL SAVINGS ACCOUNTS WILL DO ABSOLUTELY NOTHING TO PROTECT THE CHOICES THAT MOST AMERICANS ARE LOSING TODAY THAT APPROACH MAY HAVE THE RHETORIC OF INDIVIDUAL CHOICE BEHIND IT BUT IT MERELY ENCOURAGES AMERICANS TO SPEND THEIR SAVINGS ON BAREBONES POLICIES THAT COVER ONLY THE MOST CATASTROPHIC ILLNESSES WITH DEDUCTIBLES AS HIGH AS 5000 FURTHER DISCOURAGING THE KIND OF PREVENTIVE CARE WHICH HELPS KEEP PEOPLE FROM GETTING CATASTROPHIC ILLNESSES IN THE FIRST PLACE 9403100061 940310 WASTE AND BUSINESS BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY JEFF BAILEY WASTE FIRMS AREN'T CLEANING UP FROM CLINTON POLICY INITIATIVES THE HAZARDOUSWASTEHANDLING INDUSTRY HAD EXPECTED A SURGE OF BUSINESS AS THE PROENVIRONMENT ADMINISTRATION PROMISED TOUGHER ENFORCEMENT AND SPEEDIER CLEANUP OF TOXIC DUMP SITES BUT THE PROPOSED NEW SUPERFUND LEGISLATION WOULD LET MUCH CONTAMINATED DIRT SIT WE EXPECTED THEIR POSITIONS TO BE MORE BENEFICIAL TO US SAYS A SPOKESMAN FOR UNION PACIFIC CORP'S HAZARDOUS WASTE INCINERATION AND DUMP UNIT MANUFACTURERS HAVEN'T GROWN WARY ENOUGH OF THE CLINTON EPA TO START A CLEANUP BINGE ON THEIR OWN WITH CLEANUPS LARGELY STALLED 1993 WAS A DISASTER FOR THE HAZARDOUS WASTE INDUSTRY STOCK PRICES OF CHEMICAL WASTE MANAGEMENT AND ROLLINS ENVIRONMENTAL PLUNGED BY MORE THAN HALF FROM THEIR HIGHS TO THE LOWS LAST YEAR AND FOR AN INDUSTRY FUELED BY REGULATION 1994 ISN'T LOOKING LIKE A TURNAROUND ONE BRIGHT SPOT SUCH PROMISING YET UNPROVEN TECHNOLOGIES AS BREAKING DOWN WASTES IN A BATH OF MOLTEN METAL GARBAGE GROWS AS A PROBLEM AT LEAST IN SOME PEOPLE'S MINDS A RECENT POLL OF US WOMEN FINDS 23 BELIEVE CONSUMER TRASH IS THE MOST IMPORTANT ENVIRONMENTAL ISSUE TODAY FOLLOWED BY AIR QUALITY 20 WATER QUALITY 16 AND THE OZONE LAYER 8 FIVE YEARS AGO ONLY 12 NAMED GARBAGE AS MOST IMPORTANT THE MARKETING FIRM GERSTMAN+MEYERS SAYS ITS POLL AIMED AT HELPING PACKAGING CONCERNS MAKE PRODUCTS MORE APPEALING TO WOMEN REVEALS A GAP IN CONSUMER AWARENESS THE GARBAGE CRISIS A SHORTAGE OF DUMP SPACE THAT SENT DISPOSAL PRICES UPWARD IN THE LATE 1980S EXISTED IN ONLY A FEW PLACES SUCH AS NEW YORK AND NEW JERSEY TODAY A GLUT OF DISPOSAL CAPACITY IN MANY AREAS HAS DUMP PRICES PLUNGING NOT FOOLED ARE THE MIDDLEAGED AND SENIORS WHO RANK TRASH AT MOST A SECONDRATE THREAT BUT WOMEN UNDER 35 OVERWHELMINGLY CHOOSE GARBAGE EARTHQUAKE BRINGS OUT THE RUBBLE RECYCLERS LOS ANGELES HAD BARELY CEASED SHAKING WHEN CITY OFFICIALS EVER ENVIRONMENTALLY CONSCIOUS BEGAN TO BEAT THE DRUM FOR RECYCLING WITHIN DAYS LETTERS WENT OUT TO 2700 DEMOLITION CONTRACTORS ASKING THAT DEBRIS FROM THE QUAKE NOT BE SIMPLY HAULED OFF TO DUMPS A QUICK PILOT PROGRAM TO SEPARATE AND ANALYZE DEBRIS SUGGESTS THAT 81 OF THE ESTIMATED 500000TO800000 TONS OF RUBBLE IN THE CITY OF LOS ANGELES ALONE CAN BE RECYCLED AS CHEAPLY AS DUMPED CONCRETE ASPHALT AND DIRT CAN BE MIXED CRUSHED AND USED AS BASE FOR NEW ROADS OLD BRICK CAN BE SALVAGED FOR NEW BUILDINGS LET'S TURN THIS TRAGEDY INTO AN OPPORTUNITY TO PUSH FORWARD WITH RECYCLING SAYS JOAN EDWARDS A CITY WASTE OFFICIAL A 3000TON SAMPLE COST 1450 A TON TO RECYCLE SHE SAYS VS AS MUCH AS 3380 A TON TO DUMP THAT COULD SAVE THE HARDPRESSED CITY MILLIONS DUMP OWNERS MAY GET A LOT LESS RUBBLE THAN INITIALLY EXPECTED THE FEDERAL EMERGENCY MANAGEMENT AGENCY WOULD CONSIDER FINANCING RECYCLING IF IT'S ECONOMICAL THE AGENCY SAYS TWO DANGEROUS PRISONERS HAVE ESCAPED IN TRASH TRUCKS SO FAR IN 1994 BOTH WERE COMPACTED ONE SURVIVES FOUND BADLY BRUISED AT THE DUMP PRISONS TIGHTEN SECURITY AGAINST THE UNUSUAL ESCAPES THE STATE PRISON IN LANCASTER CALIF PUTS LOCKS ON DUMPSTERS AND COUNTS INMATES BEFORE TRASH TRUCKS LEAVE A FLORIDA PRISON USES A SECURITY PROCEDURE OF COMPACTING TRASH IN THE TRUCK WHILE ON THE GROUNDS A CHILL GOES THROUGH WMX TECHNOLOGIES AS TWO BIG DUMPS THE COMPANY OWNS NEAR PHILADELPHIA ARE HIT WITH A COMBINED FOURFOLD INCREASE IN PROPERTY TAXES TO MORE THAN 4 MILLION A YEAR THE TAX RISE WAS THE IDEA OF AN ENTERPRISING SCHOOL DISTRICT SEEKING NEW FUNDING WMX WHICH OPERATES 130 DUMPS IN THE US CALLS THE HEFTY HIKE UNUSUAL AND APPEALS FIRES AT OLD TIRE PILES PROMPT SAFETY MEASURES TWO BILLION DISCARDED AUTOMOBILE TIRES SIT IN PILES AROUND THE US FIRES BURN HOT THREATEN GROUNDWATER WITH OILY RUNOFF AND CAN COST MILLIONS OF DOLLARS TO EXTINGUISH THE SCRAP TIRE MANAGEMENT COUNCIL ADVISES FENCE THEM IN PILE THEM LOW KEEP A ROAD CLEAR FOR FIRETRUCKS BACKYARD BURNING OF TRASH MAKES A SMELLY COMEBACK AS ENVIRONMENTAL LAWS FORCE OLD RURAL DUMPS TO CLOSE AND TOWNS INCREASE TRASHCOLLECTION FEES MORE RESIDENTS TURN TO BURNING WASTE IN A 55GALLON DRUM EVEN IF IT'S JUST PAPER A BACKYARD FIRE CAN BE A SMOKY NUISANCE FOR NEIGHBORS ADD IN PLASTICS AND OFFICIALS SAY IT'S POTENTIALLY TOXIC STILL TRASH BURNING ISN'T AN ENFORCEMENT PRIORITY IN SPOONER WIS STATE ENVIRONMENTAL OFFICER JIM ROSS LACKS TICKETING AUTHORITY SO HE TRIES TO CONVINCE BURNERS THEY ARE BEING RUDE TO NEIGHBORS IN TINY MILFORD NY POPULATION 460 ANTIBURN ACTIVIST MICHAEL WHALING COUNTED 68 BURN BARRELS MOST FIRE UP ON SATURDAY MORNINGS AVOIDING A LONG DRIVE TO A DISPOSAL OUTLET HE SAYS PLACING DROPOFF DUMPSTERS CLOSER TO SUCH TOWNS WOULD HELP CURB BURNING SAYS A NEW YORK STATE OFFICIAL LITTER WORKERS AT A PRESTON CONN TRASH INCINERATOR TAKE TIME TO INSPECT LOADS FROM A NEARBY CASINO WHERE CHIPS AND CASH SOMETIMES FALL INTO THE TRASH STILL GOING STRONG STATES PASSED 110 NEW RECYCLING LAWS IN 1993 REPORTS STATE RECYCLING LAWS UPDATE A NEWSLETTER 9403100060 940310 BUSINESS BRIEF HJ HEINZ REPORTS DROP OF 21 IN PROFIT FOR FISCAL 3RD QUARTER PITTSBURGH HJ HEINZ CO CITING A SLOWDOWN IN ITS WEIGHT WATCHERS UNIT AS WELL AS A HIGHER TAX RATE REPORTED A 21 DROP IN PROFIT FOR ITS FISCAL THIRD QUARTER HEINZ HAD NET INCOME OF 1286 MILLION OR 50 CENTS A SHARE FOR THE QUARTER ENDED JAN 26 COMPARED WITH NET OF 1623 MILLION OR 62 CENTS A SHARE A YEAR AGO THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS THOUGH SOME REDUCED THEIR ESTIMATES GOING FORWARD I'VE LOWERED MY NUMBERS THREE TIMES IN 1994 AND LOWERED THEM AGAIN TODAY SAID MICHAEL MAUBOUSSIN AN ANALYST WITH CS FIRST BOSTON THE PITTSBURGH FOOD COMPANY SAID ITS TAX RATE IN THE QUARTER WAS 403 COMPARED WITH 344 A YEAR AGO A SPOKESMAN SAID THE DECLINE IN THE TAX RATE RESULTED FROM A CHANGE IN THE MIX OF BUSINESS FOR THE QUARTER WEIGHT WATCHERS DIET CLASSES AND FROZEN FOODS WERE HURT BY WINTER WEATHER THE LOS ANGELES EARTHQUAKE AND FLUCTUATING DIET PATTERNS PRIMARILY IN THE US THE COMPANY SAID MARKETING EXPENDITURES ROSE 19 DURING THE QUARTER SALES FELL 32 TO 171 BILLION REFLECTING SEVERAL ASSET SALES IN 1993 AS WELL AS ADVERSE FOREIGNCURRENCY TRANSLATIONS SEPARATELY MEMBERS OF THE UNITED FOOD AND COMMERCIAL WORKERS LOCAL 325 CITING DIFFERENCES ON PROPOSED WAGE INCREASES REJECTED A PROPOSED FIVEYEAR CONTRACT BY A VOTE OF 712 TO 34 THE MEMBERS WORK AT A HEINZ PLANT IN PITTSBURGH WHICH EMPLOYS MORE THAN 750 IN LATE NEW YORK STOCK EXCHANGE TRADING HEINZ SHARES WERE QUOTED AT 30875 DOWN 625 CENTS 9403100058 940310 LETTERS TO THE EDITOR HASTE MAKES WASTE YOUR TRACKING TRAVEL COLUMN JAN 25 HAD A LITTLE FUN AT THE EXPENSE OF THE AGENTS AND INSPECTORS WHO FAILED TO CATCH AN EXPIRED PASSPORT CERTAINLY SOMETHING THAT THEY'RE SUPPOSED TO NOTICE I MUST POINT OUT HOWEVER THAT YOU FAILED TO NOTICE THE STORY REFERS TO THE LUFTHANSA TICKETCOUNTER AGENT AT WASHINGTON'S NATIONAL AIRPORT SINCE LUFTHANSA DOES NOT AND CANNOT FLY FROM WASHINGTON'S NATIONAL AIRPORT YOU OBVIOUSLY MEANT DULLES I CAN ONLY ASSUME YOU MADE THE SAME KIND OF RUSHRUSH OVERSIGHT ERROR THAT YOUR STORY'S SUBJECTS MADE A BIT IRONIC HUH 9403100057 940310 LETTERS TO THE EDITOR NATION OF ISLAM'S SERMONS OF HATRED YOUR JAN 27 POLITICS & POLICY ARTICLE BLACKS' INCREASING VOCAL OPPOSITION TO VIOLENCE IS MATCHED BY STRONG OPPOSITION TO CRIME BILL GIVES THE NATION OF ISLAM UNDUE CREDIT WHEN YOU SAY ITS LEADERSHIP HAS SPOKEN OUT AGAINST CRIME AND FOR THE KIND OF VALUES THAT MAKE IT UNACCEPTABLE THE NATION OF ISLAM'S LEADERSHIP ON AND OFF CAMPUS PREACHES SELECTIVE VIOLENCE AND THE VALUE OF BIGOTRY LAST NOV 29 FOR INSTANCE KHALID ABDUL MUHAMMAD ONE OF THE NATION OF ISLAM'S LEADING SPOKESMEN GAVE HIS STUMP SPEECH AT KEAN COLLEGE IN NEW JERSEY THE VALUE HE ASCRIBED TO INTERRELIGIOUS RESPECT WAS CLEAR THE OLD NO GOOD POPE YOU KNOW THAT CRACKER SOMEBODY NEED TO RAISE THAT DRESS UP AND SEE WHAT'S REALLY THERE HE PREACHED ABOUT KILLING ALL WHITE SOUTH AFRICANS BABIES INCLUDED IF THEY DO NOT GET OUT OF THE COUNTRY IN 24 HOURS HE LAUGHED WHEN HE DESCRIBED POLITICAL PRISONERS IN THE US WHO BECAME SUCH WHEN THEY PUT THE GUN TO THE WHITE JUDGE'S HEAD AND THEY BLEW THE JUDGE'S HEAD OFF HE SAID THE WHITE MAN IS THE DEVIL ACCORDING TO MUHAMMAD THE LESSON OF WORLD WAR II WAS THAT EVERYBODY ALWAYS TALK SIC ABOUT HITLER EXTERMINATING SIX MILLION JEWS BUT DON'T NOBODY SIC EVER ASK WHAT DID THEY DO TO HITLER' MINISTER LOUIS FARRAKHAN LEADER OF THE NATION OF ISLAM HAS NOT ONLY REFUSED TO REPUDIATE MUHAMMAD'S REMARKS BUT HAS ACCUSED JEWS AND OTHERS OF USING KHALID'S WORDS AGAINST US WHEN WHITE RACIST ORGANIZATIONS SPEAK OUT ABOUT CRIME AND VALUES AS THEY DO FROM TIME TO TIME WE EXPECT THE MEDIA NOT TO TAKE THEIR WORDS AT FACE VALUE BUT TO REPORT THEM IN THE CONTEXT OF THEIR SPEAKERS' HATEFUL AGENDA THE NATION OF ISLAM'S PRONOUNCEMENTS ARE NO LESS SELECTIVE AND BONECHILLING 9403100056 940310 MARKETING & MEDIA GM LAUNCHES AD CAMPAIGN FOCUSING ON HUMILITY ENTHUSIASM FOR THE CLIENT BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FOR THE FIRST TIME IN TWO YEARS GENERAL MOTORS CORP HAS LAUNCHED A NEW CORPORATE ADVERTISING CAMPAIGN THAT HIGHLIGHTS HUMILITY AND ENTHUSIASM FOR THE CUSTOMER IN LIEU OF NEW PRODUCTS BUT THE SELFEFFACING TONE OF THE ADS COULD LEAVE SOME CONSUMERS PUZZLING WHETHER GM HAS REALLY FIXED ITS PROBLEMS ONE PRINT AD STARTS OUT WE BLEW A DEADLINE TICKED EVERYONE OFF COST THE COMPANY A BUNDLE AND WE DID THE RIGHT THING PICTURED IS JIM PERKINS GM'S VICE PRESIDENT IN CHARGE OF ITS CHEVROLET DIVISION MR PERKINS IS QUOTED AS SAYING HE DELAYED THE LAUNCH OF A FLAGSHIP MODEL BECAUSE OF PRODUCTION GLITCHES MR PERKINS CONCLUDES WHEN WE KNOW WE'VE GOT IT RIGHT WE'LL BRING OUT THE CAR GM HAS BEEN WORKING HARD OVER THE PAST COUPLE YEARS TO CONVINCE CAR BUYERS THAT IT REALLY HAS IMPROVED THE QUALITY OF ITS VEHICLES AND DROPPED ITS OLD ARROGANT ATTITUDES TOWARD CUSTOMERS THERE'S A NEW SPIRIT AT GM IF YOU WILL A GM SPOKESMAN SAID WE'VE SEEN TREMENDOUS CHANGE AT GM AND WE WANT TO TELL THE STORY THROUGH PEOPLE AND EXPERIENCES WE'VE HAD OVER THE PAST COUPLE OF YEARS THE AD CAMPAIGN CREATED BY NW AYER COMES AS GM IS PREPARING TO LAUNCH TWO NEW VEHICLES THAT ARE KEY TO ITS PUSH TO REGAIN A BIGGER SHARE OF THE HIGHLY PROFITABLE BUT INTENSELY COMPETITIVE MIDSIZE SEDAN AND SPORT UTILITY VEHICLE MARKETS GM DID DELAY THE LAUNCH OF ITS MIDSIZE CHEVROLET LUMINA SEDAN THE CAR MR PERKINS APPEARS TO BE REFERRING TO IN RESPONSE TO COMPLAINTS FROM CONSUMERS ABOUT THE CAR'S DESIGN GM ALSO HAS DELAYED THE LAUNCH OF THE CHEVROLET S10 BLAZER SPORT UTILITY BY TWO MONTHS TO RESOLVE POTENTIAL QUALITY PROBLEMS ANOTHER GM AD STRIKES A SIMILAR CHORD THERE ISN'T A PERSON ON THIS PLANET WHO NEEDS TO DRIVE A GM VEHICLE IN ORDER TO LIVE THE AD CONCLUDES THAT GM HAS TO BUILD SOMETHING SO RIGHT FOR YOUR CUSTOMERS THEY CAN'T IMAGINE LIVING WITHOUT IT THE NEW AD CAMPAIGN IS GM'S FIRST MAJOR EFFORT TO BROADCAST A CORPORATE IMAGE SINCE PRESIDENT JOHN F SMITH JR WAS INSTALLED IN NOVEMBER 1992 AS CHIEF EXECUTIVE OFFICER GM'S LAST IMAGE CAMPAIGN WHICH HAD THE TAGLINE PUTTING QUALITY ON THE ROAD DID NOTHING TO STOP GM'S MARKET SLIDE IN THE NEW CAMPAIGN WE'RE SPEAKING WITH CANDOR AS A WAY TO CREATE CREDIBILITY SAID PHIL GUARASCIO GM'S HEAD OF MARKETING AND ADVERTISING THE PRINT ADS ARE SCHEDULED TO RUN THROUGH THE END OF THE YEAR BUT AREN'T SCHEDULED TO APPEAR ON TELEVISION MR GUARASCIO SAID THE COMPANY HAS BEEN WORKING ABOUT A YEAR ON A NEW CORPORATE AD CAMPAIGN AND IS OPERATING ON A RELATIVELY MODEST BUDGET 9403100055 940310 INTERNATIONAL JAPANESE PROSECUTORS CONDUCT RAID OF HOME OF EXCABINET OFFICIAL TOKYO PROSECUTORS RAIDED THE HOME OF A FORMER JAPANESE CABINET MINISTER WEDNESDAY AS A WIDENING INFLUENCEPEDDLING SCANDAL THREATENED ITS HIGHESTRANKING TARGET YET JAPANESE NEWS BROADCASTS SHOWED PROSECUTORS FILING INTO THE HOME OF KISHIRO NAKAMURA A MEMBER OF PARLIAMENT AND FORMER CONSTRUCTION MINISTER THE SEARCH IS PART OF AN INVESTIGATION INTO A PROLONGED SCANDAL THAT HAS BROUGHT DOWN SEVERAL REGIONAL POLITICIANS AND DOZENS OF EXECUTIVES FROM JAPAN'S TOP CONSTRUCTION COMPANIES AT ISSUE ARE ALLEGATIONS THAT POLITICIANS USED THEIR INFLUENCE TO HELP CONTRACTORS WIN PUBLICWORKS BIDS WITH THE PROBE OF MR NAKAMURA THE FOCUS OF THE SCANDAL HAS SHIFTED TO THE NATIONAL SEAT OF POLITICS IN TOKYO BUT IT IS STILL UNCLEAR WHETHER THE SCANDAL WILL SPREAD TO OTHER MEMBERS OF PARLIAMENT OR TO LEADERS OF THE RULING COALITION GOVERNMENT FOR DAYS JAPANESE NEWSPAPERS HAVE CARRIED BANNER HEADLINES ABOUT MR NAKAMURA'S FAILURE TO COOPERATE WITH PROSECUTORS' REPEATED REQUESTS THAT HE SUBMIT TO QUESTIONING MANY ANALYSTS THINK IT IS ONLY A MATTER OF TIME BEFORE THE AUTHORITIES ARREST MR NAKAMURA WHO HASN'T BEEN FORMALLY CHARGED PROSECUTORS DECLINED TO COMMENT ON NEWS ACCOUNTS OF THE ALLEGATIONS AGAINST MR NAKAMURA MR NAKAMURA AND HIS LAWYERS WEREN'T AVAILABLE TO COMMENT MR NAKAMURA IS PROTECTED FROM ARREST BY A RULE THAT GRANTS LAWMAKERS IMMUNITY WHILE PARLIAMENT IS IN SESSION PROSECUTORS HAVE ASKED THE GOVERNMENT TO WAIVE THE IMMUNITY FOR THE FIRST TIME IN 27 YEARS THE LOWER HOUSE OF PARLIAMENT IS EXPECTED TO LIFT MR NAKAMURA'S PROTECTION BY A MAJORITY VOTE AS EARLY AS THURSDAY ALLOWING PROSECUTORS TO ARREST HIM THE WEDNESDAY RAID AGAINST MR NAKAMURA MARKS THE FIRST HIGHPROFILE MOVE AGAINST A NATIONAL LAWMAKER SINCE MR NAKAMURA'S LIBERAL DEMOCRATIC PARTY LOST POWER TO A COALITION OF OPPOSITION PARTIES LAST YEAR AFTER FOUR DECADES OF RULE A PRIME REASON FOR THE FALL WAS THE LIBERAL DEMOCRATS' FAILURE TO REFORM JAPANESE POLITICS AFTER A SERIES OF SCANDALS 9403100054 940310 THE KGB AND AMERICA'S WAR ON DRUGS BY MARK ALMOND IN ALL THE FUSS FOLLOWING THE ARREST OF TOP CIA AGENT AND ALLEGED MOSCOW MOLE ALDRICH AMES SOME KEY QUESTIONS HAVE GONE UNASKED MEDIA ATTENTION HAS FOCUSED ON MR AMES'S ACTIVITIES AS CIA HEAD OF SOVIET COUNTERINTELLIGENCE WHERE HE ALLEGEDLY BETRAYED TO THEIR DEATHS SOME 10 SOVIETS WORKING FOR AMERICA BUT WHAT MR AMES WAS DOING AFTER HE LEFT THIS POST HAS BEEN LARGELY IGNORED ALDRICH AMES WAS A KEY FIGURE IN THE NEW AMERICAN EFFORT TO THWART THE INFLOW OF NARCOTICS INTO THE US AND IMPEDE THE CORRUPTING INFLUENCE OF THE DRUG BARONS IF HIS WORK IN THE CIA'S OPERATIONS AGAINST DRUG TRAFFICKING WAS AS CONTROLLED BY KGB AGENTS AS HIS EARLIER SERVICE THEN THE EXPLOSIVE POWER OF THE AMES CASE DOUBLES ITS FORCE DURING THE LATE 1980S THE US INTELLIGENCE COMMUNITY INCREASINGLY SHIFTED ITS EMPHASIS FROM CLASSIC ESPIONAGE AGAINST THE COLD WAR RIVAL TO A NEW ROLE IN THE WAR AGAINST DRUGS AND ORGANIZED CRIME WESTERN EUROPEAN INTELLIGENCE AGENCIES REDEPLOYED THEIR RESOURCE TOO IN THE HAPPY DAWN OF THE NEW WORLD ORDER GEORGE BUSH THOUGHT THE CIA SHOULD COOPERATE WITH ITS EXRIVALS AGAINST COMMON FOES ORGANIZED CRIME TERRORISM AND DRUG TRAFFICKING MR AMES BECAME HEAD OF THE CIA'S NARCOTICS INTELLIGENCE DEPARTMENT FOR THE BLACK SEA COUNTRIES IN 1990 AFTER HIS SERVICE AS COUNTERINTELLIGENCE CHIEF FOR EASTERN EUROPE AND THE SOVIET UNION YET ALL THE WHILE MR AMES WAS ALLEGEDLY WORKING FOR HIS OLD KGB HANDLERS COULD ONE EXPLANATION FOR AMERICA'S SORRY RECORD IN THE WAR ON DRUGS BE THAT ITS KEY INTELLIGENCE WAS GOING TO THE OTHER SIDE RUMORS IN THE 1980S ABOUT KGB OR CUBAN INVOLVEMENT IN THE DRUG TRADE WERE ROUTINELY POOHPOOHED BY STATE DEPARTMENT AND CIA TYPES WHO COULD NOT IMAGINE THAT THEIR RIVALS WERE ANYTHING OTHER THAN SINCERE CHAMPIONS OF ANOTHER CAUSE NOW THAT THE ROUTINE CYNICISM AND CORRUPTION OF THE FORMER SOVIET UNION IS WIDELY ACKNOWLEDGED IT IS TIME TO ASK WHETHER SOME OF THE CASH TO FUND EXPENSIVE KGB OPERATIONS MIGHT COME FROM THE WORLD'S MOST LUCRATIVE MILK COW THE NARCOBUSINESS ESPIONAGE EXPERTS HAVE EXPRESSED SURPRISE AT THE AMOUNT OF CASH THE KGB IS ALLEGED TO HAVE PAID MR AMES FAR MORE THAN IN MOST TREASONFORMONEY CASES IN WHICH THE AMOUNTS ARE OFTEN AMAZINGLY TRIVIAL FEWER QUESTIONS SEEM TO HAVE BEEN ASKED ABOUT WHETHER THE KGB WAS THE ONLY SOURCE OF MR AMES'S AFFLUENCE IT SEEMS REASONABLE TO ASK WHETHER HIS VISITS TO HIS SECOND WIFE MARIA'S NATIVE COLOMBIA MIGHT HAVE GIVEN HIM ACCESS TO ANOTHER SOURCE OF INCOME IN RETURN FOR INFORMATION ABOUT THE CIA'S ANTINARCOTICS DRIVE ANOTHER QUESTION SUGGESTS ITSELF DID MR AMES BETRAY ANYONE TO THE KGB IN HIS NEW POSTING AS HE ALLEGEDLY DID WHILE COUNTERINTELLIGENCE CHIEF LAST AUGUST IN THE FORMER SOVIET REPUBLIC OF GEORGIA THE CIA'S FRED WOODRUFF WAS SHOT DEAD WHILE RIDING IN THE CAR OF THE CHIEF OF THE GEORGIAN SECURITY SERVICE A TERRIBLE ACCIDENT WAS THE IMPROBABLE VERDICT BUT A WEEK EARLIER MR AMES HAD BEEN IN GEORGIA IN ADDITION TO HIS MISSION TO PROVIDE US TRAINING TO GEORGIAN SECURITY FORCES MR WOODRUFF WAS ALLEGEDLY INVESTIGATING GEORGIA'S ROLE AS A CONDUIT OF HEROIN FROM OTHER EXSOVIET REPUBLICS TO THE WEST SOME INFORMED GEORGIANS THINK THAT MR WOODRUFF HAD COME TO BELIEVE THAT THE MEN WASHINGTON HAD SENT HIM TO COOPERATE WITH WERE IN FACT INVOLVED IN THE HEROIN SHIPMENTS HAD MR WOODRUFF REPORTED THIS MR AMES WOULD HAVE BEEN THE FIRST MAN IN THE CIA TO RECEIVE HIS REPORT IT IS PUBLIC KNOWLEDGE IN GEORGIA THAT THE SECURITY FORCES OF EDUARD SHEVARDNADZE'S REGIME ARE INVOLVED IN THE REPUBLIC'S RAMPANT DRUG BUSINESS SO SEVERE HAS THE PROBLEM BECOME THAT EVEN MR SHEVARDNADZE RECENTLY FELT OBLIGED TO UNDERGO A HEROIN TEST TO PROVE HIS CREDIBILITY AS AN EXKGB GENERALTURNEDREFORMER WHO RETURNED TO HIS NATIVE GEORGIA MR SHEVARDNADZE OUGHT TO BE ABLE TO HELP THE CLINTON ADMINISTRATION CLEAR UP ANY CONNECTION BETWEEN MR AMES'S VISIT TO GEORGIA LAST YEAR AND THE MURDER OF CIA STATION CHIEF WOODRUFF IF MR AMES WAS BETRAYING AMERICA'S WAR ON DRUGS TO THE KGB THEN THE CLINTON ADMINISTRATION AND THE WEST ARE STARING INTO A DEEP AND DARK ABYSS THE VENALITY OF ALDRICH AMES CONTRASTS SHARPLY WITH THE INTENSE IF TWISTED IDEOLOGICAL TREASON OF A KIM PHILBY HOW MANY OTHER UNHAPPILY SALARIED WESTERN INTELLIGENCE OFFICIALS COOPERATING WITH THE EXKGB IN THE WAR ON DRUGS HAVE ALSO BEEN TEMPTED BY THE RICH PICKINGS OF BETRAYAL IN THE POSTIDEOLOGICAL AGE MR ALMOND IS A LONDONBASED WRITER HIS PAPER STILL SERVING SECRETLY SOVIET BLOC SPIES UNDER NEW MASTERS WAS RECENTLY PUBLISHED BY THE INSTITUTE FOR EUROPEAN DEFENCE AND STRATEGIC STUDIES 9403100053 940310 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 BANK OF CHINA 500 MILLION OF DEBT PRICED IN TWO PARTS THROUGH LEAD MANAGER MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 400 MILLION OF NOTES DUE MARCH 15 1999 WAS PRICED AS 675S AT 9971 TO YIELD 6819 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 100 MILLION OF BONDS DUE MARCH 15 2014 WAS PRICED AS 825S AT 997 TO YIELD 8281 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE TREASURYS AND IS RATED SINGLEA3 BY MOODY'S AND TRIPLEB BY S&P COLUMBIA/HCA HEALTHCARE CORP 175 MILLION OF SENIOR NOTES DUE MARCH 15 1999 PRICED AS 65S AT 99928 TO YIELD 6517 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 64 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ENVIROTEST SYSTEMS CORP 200 MILLION OF SENIOR NOTES DUE MARCH 15 2001 PRICED AS 9125S AT 99366 TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL HOME LOAN BANK SYSTEM 102 MILLION OF BONDS DUE MARCH 18 1996 PRICED AT PAR TO YIELD 502 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF MULTIPLE STEPUP NOTES DUE MARCH 30 1999 PRICED INITIALLY AT PAR TO YIELD 55 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 56 ON MARCH 30 1995 AND THEN TO 62 72 AND 82 IN EACH CONSECUTIVE YEAR THE NOTES ARE NONCALLABLE FOR ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF DEBENTURES DUE MARCH 17 1997 PRICED AT PAR TO YIELD 5515 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF 175 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC MCI COMMUNICATIONS CORP 750 MILLION OF DEBT PRICED IN TWO PARTS THROUGH LEAD MANAGER MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF NOTES DUE MARCH 23 1999 WAS PRICED AS 625S AT 99657 TO YIELD 6331 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 450 MILLION OF DEBENTURES DUE MARCH 23 2025 WAS PRICED AS 775S AT 99188 TO YIELD 782 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P MCI COMMUNICATIONS CORP 200 MILLION OF FLOATINGRATE NOTES DUE MARCH 16 1999 PRICED THORUGH LEAD MANAGER MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT AND PAY QUARTERLY AT A SPREAD OF 19 BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE THE NOTES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P STUDENT LOAN MARKETING ASSOCIATION 200 MILLION OF STEPUP NOTES DUE MARCH 23 1999 PRICED INTIALLY AT PAR TO YIELD 515 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 565 ON MARCH 23 1995 AND THEN TO 62 72 AND 82 IN EACH CONSECUTIVE YEAR THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BORROR CORP INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1150 EACH THROUGH UNDERWRITERS LED BY MCDONALD & CO SECURITIES INC AND OHIO CO BROWNINGFERRIS INDUSTRIES INC 135 MILLION COMMON SHARES PRICED AT 29 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO JUST FOR FEET INC INITIAL OFFERING OF 17 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES MACERICH CO INITIAL OFFERING OF 125 MILLION COMMON SHARES PRICED AT 19 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC UROMED CORP INITIAL OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 8 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC AND VECTOR SECURITIES INTERNATIONAL INC CALIFORNIA 700 MILLION OF VARIOUSPURPOSE GENERALOBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 325 IN 1995 TO 6 IN 2023 AND 2024 BONDS DUE IN 2002 AND 2003 ARE INSURED BY AMBAC INDEMNITY CORP BONDS DUE IN 2020 ARE INSURED BY FINANCIAL SECURITY ASSURANCE INC THOSE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE BONDS WHICH ARE UNINSURED HAVE A DOUBLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P PORT OF SEATTLE 1495 MILLION OF 1994 LIMITEDTAX GENERALOBLIGATION BONDS PRICED BY A GOLDMAN SACHS & CO GROUP WITH YIELDS FROM 355 IN 1995 TO 605 IN 2014 THE OFFERING IS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAS BEEN RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 250 BILLION ITALIAN LIRE OF 9 EUROBONDS DUE APRIL 8 2004 AT ISSUE PRICE 1013 VIA BANCA EUROMOBILIARE SPA AND MORGAN STANLEY & CO INTERNATIONAL LTD REOFFERED AT 99625 TO YIELD 906 GUARANTOR ABBEY NATIONAL PLC FEES TWO BRITISH LAND CO UK 150 MILLION OF 6 UNDATED SUBORDINATED CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA SWISS BANK CORP CONVERTIBLE INTO ORDINARY COMPANY SHARES AT 510 PENCE BONDS CALLABLE AFTER SEVEN YEARS IF SHARE PRICE EXCEEDS 130 OF CONVERSION PRICE FROM 14TH ANNIVERSARY CALLABLE AT ANY TIME AFTER TWO YEARS ISSUER CAN EXCHANGE BONDS FOR CONVERTIBLE PREFERENCE SHARES PAYING 6 NET DIVIDEND AFTER ANOTHER SIX MONTHS ISSUER CAN SWITCH PREFERENCE SHARES INTO NEW BOND WITH SAME TERMS AND CONDITIONS AS ORIGINAL ISSUE FEES 25 LESS 01666 FOR LEAD MANAGER PAYABLE SEMIANNUALLY BUNKA SHUTTER CO JAPAN 100 MILLION OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 24 1998 VIA NOMURA INTERNATIONAL PLC WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM 25 FROM APRIL 17 TO MARCH 10 1998 TERMS TO BE FIXED WEDNESDAY GUARANTOR DAIICHI KANGYO BANK LTD FEES 225 LESS 015 FOR LEAD MANAGER FULMAR MORTGAGE SECURITIES NO 1 LTD SPECIALPURPOSE VEHICLE 495 MILLION EQUIVALENT OF MORTGAGEBACKED EUROBONDS VIA MORGAN STANLEY & CO INTERNATIONAL LTD BONDS SECURED ON SWEDISH MULTIUNIT RESIDENTIAL MORTGAGES ORIGINATED BY SVENSK FASTIGHETSKREDIT A UNIT OF SKANDINAVISKA ENSKILDA BANKEN ISSUE DIVIDED INTO SEVEN TRANCHES FIVE TRANCHES OF SENIOR DOLLARDENOMINATED NOTES TOTALING 332433 MILLION DUE BETWEEN FEBRUARY 1998 AND NOVEMBER 2000 INTEREST FLOATS AGAINST THREEMONTH DOLLAR LIBOR AVERAGE EXPECTED LIFE RANGE 146 YEARS TO 421 YEARS CLASS A4 TRANCHE IS ONE BILLION SWEDISH KRONOR OF 725 SENIOR NOTES DUE NOVEMBER 1999 AT ISSUE AND REOFFER PRICE 99917 EXPECTED LIFE 301 YEARS CLASS A7 TRANCHE IS 319628 MILLION KRONOR OF 765 SUBORDINATED BONDS DUE NOVEMBER 2000 ISSUE PRICE PAR REOFFER PRICE VARIABLE EXPECTED LIFE 183 YEARS FEES VARIABLE PAYABLE QUARTERLY FORD CREDIT AUSTRALIA LTD US PARENT 80 MILLION AUSTRALIAN DOLLARS OF 35YEAR FLOATINGRATE NOTES PRICED AT 39 BASIS POINTS ABOVE THE AUSTRALIAN 90DAY BANK BILL RATE SETTLEMENT TUESDAY NOTES MATURE SEPT 15 1997 INTEREST RESET QUARTERLY 9403100052 940310 MONEYMARKET YIELDS FOR TAXABLE FUNDS ROSE DURING WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 285 FROM 283 THE FIFTHCONSECUTIVE WEEKLY RISE ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 281 FROM 279 WHILE THE 30DAY SIMPLE YIELD EDGED UP TO 278 FROM 275 THE 30DAY COMPOUND YIELD ROSE TO 282 FROM 279 ASSETS OF 645 TAXABLE FUNDS GREW BY 627 BILLION TO 47893 BILLION THE NEWSLETTER SAID INDIVIDUAL INVESTORS ACCOUNTED FOR 474 BILLION OF THE INFLOW WHILE INSTITUTIONAL INVESTORS PUT IN 153 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY TWO DAYS TO 51 DAYS THAT'S A 10DAY DROP SINCE THE BEGINNING OF FEBRUARY A SIGN THAT PORTFOLIO MANAGERS EXPECT SHORTTERM INTEREST RATES TO RISE ON TAXEXEMPT FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD EASED TO 195 FROM 199 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 305 FOR SOMEONE PAYING 36 IN TAXES AND TO 323 FOR THOSE WHO PAY 396 ASSETS OF 346 TAXEXEMPT FUNDS ROSE BY 344 BILLION TO 11610 BILLION THE NEWSLETTER SAID THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 55 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9403100051 940310 BUSINESS BRIEF RR DONNELLEY & SONS CO PRINTING CONCERN WILL BUY 51 STAKE IN CHILEAN FIRM RR DONNELLEY & SONS CO SAID IT PLANS TO ACQUIRE A 51 STAKE IN EDITORIAL LORD COCHRANE SA A PRINTING COMPANY IN CHILE FOR 587 MILLION DONNELLEY THE WORLD'S LARGEST COMMERCIAL PRINTING COMPANY SAID COCHRANE'S PRIMARY OPERATION IS A PRINTING PLANT IN SANTIAGO THAT PRODUCES MAGAZINES CATALOGS DIRECTORIES AND BOOKS COCHRANE ALSO HAS JOINTVENTURE INTERESTS IN COMPANIES THAT PRINT MAGAZINES AND CATALOGS IN BUENOS AIRES AND IN SAO PAULO BRAZIL AND IN COMPANIES INVOLVED IN MAGAZINE DISTRIBUTION AND PREPRESS OPERATIONS IN ARGENTINA AND CHILE THE CHICAGO COMPANY SAID THE DEAL EXPECTED TO CLOSE IN MIDAPRIL WILL MARK ITS FIRST VENTURE IN SOUTH AMERICA THE TRANSACTION IS SUBJECT TO CERTAIN CONDITIONS INCLUDING COMPLETION OF DUEDILIGENCE STUDIES AND APPROVAL BY ITS BOARD 9403100050 940310 LETTERS TO THE EDITOR IT'S UNFAIR TO PRESUME GUILT BY ASSOCIATION YOUR MARCH 1 EDITORIAL PRESUMPTION OF RASCALITY ON THE SENATE BANKING COMMITTEE'S HEARINGS ON THE RESOLUTION TRUST CORPORATION RAISED MANY SERIOUS LEGITIMATE QUESTIONS BUT REGRETTABLY ENGAGED IN SOME UNWARRANTED AND INACCURATE PERSONAL SNIPINGS DURING MY YEARS IN THE SENATE I HAVE PROVEN MY WILLINGNESS TO INVESTIGATE UNPOPULAR MATTERS I WAS THE FIRST TO EXPOSE OLIVER NORTH'S PRIVATE AID NETWORK I EXPOSED MANUEL NORIEGA'S DRUG CONNECTIONS AND FIRST UNCOVERED THE LINK TO BCCI I PRODUCED AN UNMATCHED RECORD OF THE BCCI SCANDAL I SOUGHT FULL INVESTIGATIVE POWERS FROM THE VERY COMMITTEE YOU ENCOURAGE TO INVESTIGATE NOW AND RECEIVED NO SUPPORT FROM THE REPUBLICANS YOU DEFEND IRONICALLY WHAT YOU REFERRED TO AS MY PIOUS CONCERN THAT A PARTISAN POLITICAL HEARING IS NOT THE PROPER VENUE FOR A WHITEWATER INVESTIGATION IS SHARED BY INDEPENDENT COUNSEL ROBERT FISKE A LIFELONG REPUBLICAN WHO WAS NOMINATED BY PRESIDENT BUSH TO BE SECONDINCOMMAND AT THE JUSTICE DEPARTMENT AS YOU MAY REMEMBER CONGRESS HAS PROVEN ITS ABILITY TO INTERFERE WITH AND BUMBLE ONGOING INVESTIGATIONS OLIVER NORTH JOHN POINDEXTER AND OTHERS HAD THEIR CONVICTIONS OVERTURNED PRECISELY BECAUSE OF CONFLICTS THAT AROSE DIRECTLY FROM THE CONGRESSIONAL HEARINGS INTO THE IRAN/CONTRA AFFAIR AND FINALLY IT'S APPARENT THAT GUILT BY ASSOCIATION IS STILL ALIVE AT THE WALL STREET JOURNAL DAVID PAUL WAS NO MORE MY BUDDY THAN MIKE MILKEN AND IVAN BOESKY WERE YOURS 9403100049 940310 BUSINESS BRIEF GRAND METROPOLITAN PLC BURGER KING UNIT TO REDUCE CORPORATE STAFF BY 350 JOBS BURGER KING AS PART OF AN EXPECTED STREAMLINING SAID IT WILL ELIMINATE 350 JOBS OUT OF 1300 CORPORATE STAFF POSITIONS WORLDWIDE BEGINNING NEXT MONTH THE MIAMIBASED FASTFOOD UNIT OF LONDON'S GRAND METROPOLITAN PLC SAID MANY OF THOSE LOSING THEIR CURRENT JOBS MAY BE REASSIGNED AS PART OF 250 JOBS THAT ARE BEING ADDED SIMULTANEOUSLY IN THE FIELD IT SAID THE CUTS WILL EXTEND THROUGH MOST OF THE STAFF ORGANIZATION AND COULD TAKE UP TO A YEAR TO COMPLETE THE FIELDSUPPORT PERSONNEL WILL DOUBLE WORLDWIDE WHILE BURGER KING REDUCES THE OFFICE STAFF THE COMPANY SAID THE CUTS ARE PART OF CHIEF EXECUTIVE OFFICER JAMES B ADAMSON'S EXTENSIVE PLAN TO CUT COSTS REDUCE STAFF IMPROVE SERVICE AND PARE MENU OFFERINGS 9403100048 940310 LETTERS TO THE EDITOR DEVICES LET DISABLED BOARD SMALL AIRCRAFT IN YOUR FEB 1 TRACKING TRAVEL COLUMN THE ITEM EXPANDED AIR ACCESS FOR THE DISABLED SOUGHT STATES THAT PARALYZED VETERANS OF AMERICA CONCEDES THAT IT WOULDN'T MAKE SENSE FOR THE AIR CARRIER ACCESS ACT TO APPLY TO PLANES WITH 18 OR FEWER SEATS PVA CERTAINLY RECOGNIZES THE DIFFICULTY IN GAINING ACCESS TO VERY SMALL COMMERCIAL PLANES BUT DOES BELIEVE THE AIR CARRIER ACCESS ACT SHOULD APPLY MECHANICAL BOARDING DEVICES THAT ARE THE SUBJECT OF REFERENCED RULEMAKING AT THE TRANSPORTATION DEPARTMENT CAN PROVIDE ACCESS TO MANY SMALLER PLANES AS WELL PVA BELIEVES THAT IF A PASSENGER WITH A MOBILITY IMPAIRMENT CAN BOARD SAFELY THE CARRIER MUST PROVIDE THAT PERSON WITH TRANSPORTATION ADDITIONALLY THE AIR CARRIER ACCESS ACT GOES FAR BEYOND THE REQUIREMENT TO ASSIST PEOPLE WITH MOBILITY IMPAIRMENTS IN BOARDING IT IS A BROAD PROHIBITION AGAINST DISABILITYBASED DISCRIMINATION IN THE PROVISION OF AIR TRANSPORTATION AS SUCH IT APPLIES TO ALL AIR CARRIERS PROVIDING AIR TRANSPORTATION ONLY WHEN THIS ACT IS PROPERLY IMPLEMENTED WILL PEOPLE WITH DISABILITIES BE ABLE TO FLY WITHOUT FEAR OF DISCRIMINATION 9403100047 940310 ECONOMY HOUSE BANKING PANEL CLEARS MEASURE ALLOWING NATIONWIDE BRANCH NETWORKS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BANKING COMMITTEE APPROVED LEGISLATION THAT WOULD LET BANKS OPERATE NATIONWIDE BRANCH NETWORKS THE COMMITTEE VOTED 501 FOR A BILL TO REMOVE THE REMAINING RESTRICTIONS ON BANKS' ABILITY TO FORM UNIFIED BRANCH NETWORKS ACROSS STATE LINES TWO WEEKS AGO THE SENATE BANKING COMMITTEE UNANIMOUSLY CLEARED A SIMILAR NATIONWIDE BANKING BILL AND THE LEGISLATION'S OPPONENTS CONCEDED THAT CONGRESS SEEMS CERTAIN TO ENACT IT THIS YEAR THE COMMITTEE APPROVED THE MEASURE AFTER A PAIR OF 3416 VOTES REJECTING AMENDMENTS DEALING WITH SERVICE TO THE POOR AND MINORITIES ONE WOULD HAVE REQUIRED BANKS APPLYING FOR APPROVAL OF INTERSTATEBRANCH ACQUISITIONS TO MAINTAIN OR IMPROVE BANKING SERVICES IN LOCAL COMMUNITIES ESPECIALLY LOWINCOME OR MINORITY NEIGHBORHOODS THE OTHER SOUGHT TO ENSURE THAT BANKS PROVIDE BASIC LOWCOST SERVICES FOR POOR PEOPLE MICHELLE MEIER A LOBBYIST FOR CONSUMERS UNION ONE OF A NUMBER OF GROUPS FIGHTING THE LEGISLATION SAID IT WILL DRAMATICALLY CHANGE THE TRADITIONAL RELATIONSHIP BETWEEN CONSUMERS AND THEIR BANKS WHILE FEDERAL POLICY HAS BEEN TO LIMIT BANK SIZE WITH CURBS ON INTERSTATE BRANCHING THE BILL WILL GIVE BANKS NEW FREEDOM TO COLLECT DEPOSITS IN ONE COMMUNITY AND USE THEM TO FUND LOANS ACROSS THE COUNTRY MAKING IT EVEN HARDER FOR CONSUMERS IN SLOWGROWTH AREAS TO GET LOANS MS MEIER SAID BUT BANKING COMMITTEE MEMBERS ARGUED THAT A STRONGER BANKING SYSTEM THAT IS MORE DIVERSE GEOGRAPHICALLY CAN BETTER WITHSTAND BLOWS LIKE THE CREDIT CRUNCH OF THE LATE 1980S LIKE THE SENATE PANEL THEY AVOIDED ANY ATTEMPT TO RESTRICT THE ABILITY OF NATIONWIDE BANKS TO SELL INSURANCE THAT KIND OF RESTRICTION HAD BEEN A PERSISTENT OBSTACLE TO INTERSTATE BANKING BECAUSE MAJOR BANKS OPPOSED GIVING UP INSURANCE SALES AS THE PRICE OF GAINING NATIONWIDE BANKING THE MEASURE STILL MUST BE PASSED BY THE SENATE AND THE HOUSE AND THE MINOR DIFFERENCES IN THE TWO BILLS MUST BE IRONED OUT BUT ED YINGLING A LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION SAID THE HOUSE COMMITTEE'S ACTION SHOULD PUT THIS BILL ON THE FAST TRACK TOWARD ENACTMENT HE SAID IT SUCCEEDS IN BALANCING THE NEEDS OF BANK CUSTOMERS EXISTING STATE LAW AND THE LONGTERM BEST INTERESTS OF BOTH LARGE AND SMALL BANKS WITHOUT THROWING ALL KINDS OF UNRELATED BAGGAGE ABOARD THE BILL WOULD OVER THREE YEARS ALLOW BANKS TO CREATE COHERENT NATIONAL NETWORKS MOVING INTO NEW STATES ONLY THROUGH ACQUISITIONS THE LONE VOTE AGAINST THE MEASURE CAME FROM REP BERNARD SANDERS THE VERMONT INDEPENDENT THE HOUSE PANEL ALSO VOTED 465 TO MAKE IT EASIER FOR BANKS TO PACKAGE SMALLBUSINESS LOANS INTO SECURITIES AND SELL THEM TO INVESTORS THE SENATE BANKING COMMITTEE LATE LAST YEAR PASSED A BROADER BILL THAT WOULD ALSO ENCOURAGE THE DEVELOPMENT OF A PRIVATE SECONDARY MARKET FOR SMALLBUSINESS LOANS BY VOICE VOTE THE HOUSE PANEL APPROVED A MEASURE INTENDED TO OPEN FOREIGN FINANCIAL MARKETS TO US FIRMS THE BILL WOULD STRENGTHEN THE ABILITY OF FEDERAL REGULATORS TO CURB THE ACTIVITIES OF FOREIGN FINANCIALSERVICE FIRMS IF THOSE COMPANIES' HOST NATIONS DON'T OPEN THEIR MARKETS TO US INSTITUTIONS A SIMILAR BILL HAS CLEARED THE SENATE THE HOUSE COMMITTEE ALSO PASSED BY VOICE VOTE A MEASURE THAT WOULD TIGHTEN CONTROLS ON USE OF THE US BANKING SYSTEM TO LAUNDER MONEY BANKING LEGISLATION APPROVED WEDNESDAY BY THE HOUSE BANKING COMMITTEE WOULD MAKE IT EASIER FOR BANKS TO PACKAGE A WIDE RANGE OF BUSINESS COMMERCIAL REALESTATE COMMUNITYDEVELOPMENT AND MULTIFAMILYHOUSING LOANS OR EQUITY INVESTMENTS INTO SECURITIES FOR SALE TO INVESTORS A DESCRIPTION OF THE MEASURE IN AN ARTICLE THURSDAY REFERRED ONLY TO SMALLBUSINESS LOANS 9403100046 940310 BUSINESS BRIEF IMMUNEX CORP HOLDER LAWSUIT IS SETTLED WITH 14 MILLION PAYMENT IMMUNEX CORP SAID THAT IT HAS SETTLED A SHAREHOLDER CLASSACTION LAWSUIT WHICH ALLEGED VIOLATIONS OF SECURITIES LAW FOR 14 MILLION THE SEATTLE BIOPHARMACEUTICAL COMPANY SAID 10 MILLION OF THE SETTLEMENT WILL BE COVERED BY INSURANCE WITH ANOTHER 44 MILLION TAKEN AS A CHARGE TO PREVIOUSLY RELEASED FOURTHQUARTER EARNINGS RESULTING IN AN INCREASED NET LOSS OF 105 MILLION OR 27 CENTS A SHARE ON REVENUE OF 424 MILLION THE SETTLEMENT SUBJECT TO COURT APPROVAL STIPULATES THAT THE CONCERN DOES NOT ADMIT ANY WRONGDOING THE SUIT ALLEGED THAT THE COMPANY MADE FALSE STATEMENTS OR WITHHELD INFORMATION ON THE NASDAQ STOCK MARKET IMMUNEX CLOSED AT 16 UP 25 CENTS 9403100045 940310 LEISURE & ARTS RAPTOR RAPTURE EVERY DAY IN THE PARK WITH SHARON BY MARIE WINN NEW YORK WE WHO LIVE THIS PLODDING LIFE HERE BELOW NEVER KNOW HOW MANY EAGLES FLY OVER US WROTE THOREAU IN HIS JOURNAL ON APRIL 24 1854 THANKS TO SHARON FREEDMAN AN ARDENT NEW YORK BIRDWATCHER WITH A SPECIAL PASSION FOR HAWKS WE PLODDERS OF 1994 KNOW THAT AT LEAST SEVEN EAGLES FLEW OVER CENTRAL PARK DURING RECENT MONTHS AND THAT'S NOT ALL MS FREEDMAN AND HER LITTLE BAND OF FOLLOWERS SIGHTED 2532 OTHER GREAT MIGRATING BIRDS OF PREY MAKING THEIR WAY FROM BREEDING GROUNDS TO WINTER HOMES OVER THE URBAN WILDS OF MANHATTAN ISLAND THE CENTRAL PARK HAWKWATCH OFFICIALLY BEGAN ON SEPT 5 1993 THAT WAS THE DAY MS FREEDMAN A STURDY DETERMINED YOUNG WOMAN TEMPORARILY UNEMPLOYED AS A WORD PROCESSOR AND TYPESETTER TOOK ON A NEW THOUGH UNPAID JOB WITH SOME SAVINGS TO TIDE HER OVER MS FREEDMAN ANNOUNCED THAT FOR THE NEXT THREE MONTHS SHE WOULD BE COUNTING MIGRATORY HAWKS AT CENTRAL PARK'S HIGHEST POINT THE BELVEDERE CASTLE SHE ENCOURAGED ANYONE INTERESTED TO JOIN HER THERE ORGANIZED HAWKWATCHING FIRST BEGAN IN 1934 AT HAWK MOUNTAIN IN PENNSYLVANIA IT WAS DESIGNED TO SAVE HAWK LIVES BY REPLACING A VARMINT SHOOT TRADITIONALLY HELD AT THAT SITE EVERY FALL WITH OBSERVATION AND METHODICAL RECORDKEEPING ON OCT 8 1992 THE MILLIONTH RAPTOR A SHARPSHINNED HAWK WAS RECORDED FLYING PAST THE HAWK MOUNTAIN LOOKOUT POINT TODAY THERE ARE THOUSANDS OF HAWKWATCHES AT LOCATIONS ALONG MIGRATORY FLYWAYS THROUGHOUT THE US THEIR PURPOSE IS PARTLY SCIENTIFIC TO PROVIDE DATA ABOUT AVIAN POPULATION PATTERNS IN THE '50S FOR INSTANCE HAWKWATCHES PROVIDED EARLY WARNING OF DIMINISHING HAWK POPULATIONS DUE TO DDT SPRAYING AND IN RECENT YEARS COUNTS ARE INDICATING THE RETURN OF SEVERAL ENDANGERED SPECIES THE HAWK MIGRATION ASSOCIATION IS AN ORGANIZATION FOR COLLECTING INFORMATION FROM HAWKWATCHES AND FORMING CONCLUSIONS BASED ON IT MAINLY HOWEVER HAWKWATCHING IS A SPORT IT REQUIRES SHARP EYES PERSISTENCE AND ENDURANCE SKILLS THAT MAY BE TRANSFERRED TO OTHER PARTS OF LIFE LIKE ANY SPORT HAWKWATCHING HAS ITS COMPETITIVE ELEMENTS YET IT INEVITABLY CREATES A SPIRIT OF CAMARADERIE AMONG ITS PARTICIPANTS THE MAJOR CHALLENGE OF A HAWKWATCH IS TO IDENTIFY JUST EXACTLY WHAT KIND OF BIRD IT IS WAY UP THERE FOR WHILE A BALD EAGLE MAY LOOK CONSPICUOUSLY DIFFERENT FROM AN OSPREY OR A TURKEY VULTURE WHEN PICTURED IN A FIELD GUIDE IT IS A DIFFERENT STORY WHEN THE BIRD IS FLYING SO HIGH THAT TO AN UNTRAINED EYE IT RESEMBLES A SMALL SPECK SHARON FREEDMAN'S SKILL AT IDENTIFYING HAWKS IN FLIGHT IS NOTHING SHORT OF PRODIGIOUS USING BIRDER'S VERNACULAR FOR TWO EMINENTLY CONFUSABLE SPECIES THE SHARPSHINNED HAWK AND COOPER'S HAWK MS FREEDMAN GIVES AN EXAMPLE OF HOW SHE OPERATES I GO BY GESTALT A LOT RATHER THAN FIELD MARKS YOU HAVE TO AT THOSE DISTANCES FOR INSTANCE WITH SHARPIES AND COOPER'S I'M LOOKING FOR HOW THEY FLY THE SHARPIE IS A VERY DELICATE FLYER AND THE WINGBEAT COMES MORE FROM THE WRIST THE COOPER'S HAS A HEAVIER WING AND THE WINGBEAT COMES MORE FROM THE SHOULDER THERE'S A WHOOMPH TO IT FALL IS THE TIME FOR HAWKWATCHING IN THE SPRING PERHAPS BECAUSE OF WEATHER PATTERNS NORTHBOUND HAWKS TEND TO DISPERSE OVER A WIDE MIGRATORY PATH BUT ON THE SOUTHWARD JOURNEY HAWKS CONCENTRATE MOST PREDICTABLY OVER CERTAIN NATURAL FORMATIONS SUCH AS MOUNTAIN RIDGES THAT IS WHERE THEY ARE LIKELY TO FIND RISING COLUMNS OF HOT AIR KNOWN AS THERMALS WHICH ALLOW THEM TO SAVE ENERGY BY SOARING RATHER THAN ARDUOUS FLAPFLAPFLAPPING THE HAWKS FLYING OVER SHARON FREEDMAN'S CHOSEN LOCATION LAST FALL HAD NO NATURAL MOUNTAINS THERE TO HELP THEM ON THEIR WAY BUT THEY HAD THERMALS NEVERTHELESS CREATED BY THE MANMADE RIDGES OF TALL CITY BUILDINGS THAT IS WHY THE LOOKOUT POINT AT CENTRAL PARK'S BELVEDERE CASTLE HAS LONG BEEN A GATHERING PLACE FOR HAWK FANCIERS DURING THE FALL MONTHS BUT NOT UNTIL MS FREEDMAN'S HAWKWATCH WAS A SYSTEMATIC STUDY MADE OF THE KINDS AND NUMBERS OF MIGRATORY BIRDS OF PREY FLYING OVER CENTRAL PARK FROM SEPTEMBER TO MIDDECEMBER HOUR AFTER HOUR AND DAY AFTER DAY MS FREEDMAN SAT ON THE CASTLE'S UPPER OBSERVATION DECK COZILY ENSCONCED IN AN OVERHANGING TURRETLIKE CORNER STRUCTURE THAT STUDENTS OF MEDIEVAL CASTLES CALL A BARTIZAN THERE SURROUNDED BY GUIDEBOOKS THERMOSES SANDWICHES AND EXTRA CLOTHING MS FREEDMAN ANNOUNCED EACH ARRIVING HAWK TO HER FELLOW HAWKWATCHERS FOR PURPOSES OF QUICK IDENTIFICATION SHE HAD NICKNAMES FOR THE HIGHRISE BUILDINGS VISIBLE FROM HER BELVEDERE AERIE SUCH AS TALL RED PYRAMID AND THE FINGER A SLIVER SKYSCRAPER RESEMBLING A RUDE GESTURE SINAI STOOD FOR MT SINAI HOSPITAL'S ANNENBERG BUILDING A MASSIVE STRUCTURE TO THE NORTHEAST WHICH WAS CHASTISED BY THE AIA GUIDE TO NEW YORK CITY FOR THRUSTING ITSELF ONTO THE SKYLINE LIKE THE TOWN BULLY THOUGH THE CENTRAL PARK HAWKWATCH WILL ALWAYS BE SMALL POTATOES COMPARED WITH SUCH MAJORLEAGUE HAWKWATCHING SPOTS AS HAWK MOUNTAIN IT WAS NOT WITHOUT ITS DREAMS OF GLORY FOR SHARON FREEDMAN HAD A SECRET GOAL THAT SUSTAINED HER THROUGH THE SOMETIMES EXCRUCIATINGLY TEDIOUS HOURS OF WAITING FOR HAWKS TO SHOW UP SHE HOPED TO SEE EVERY ONE OF THE 15 SPECIES OF DIURNAL RAPTORS KNOWN TO MIGRATE REGULARLY THROUGH THE NORTHEAST QUADRANT OF THE US BY SEPT 28 SHE HAD RACKED UP THE FIRST EIGHT SPECIES STARTING WITH 68 BROADWINGED HAWKS THREE OSPREYS FIVE SHARPSHINNED HAWKS AND ONE KESTREL ALL SEEN ON THE FIRST DAY OF THE HAWKWATCH SHE RECORDED A TURKEY VULTURE ON SEPT 6 A COOPER'S HAWK ON THE 17TH A LOVELY LITTLE FALCON CALLED A MERLIN ON THE L9TH AND TWO GOSHAWKS THE LARGEST MEMBERS OF THE ACCIPITER FAMILY ON THE 28TH BY THE END OF OCTOBER SHE WAS UP TO 13 SPECIES HAVING ADDED THE NORTHERN HARRIER REDTAILED HAWK REDSHOULDERED HAWK PEREGRINE FALCON AND A RARE SIGHTING OF A ROUGHLEGGED HAWK ON OCT 26 NOV 8 WAS A REDLETTER DAY TWO BALD EAGLES FLEW DIRECTLY OVER THE PARK'S GREAT LAWN BETWEEN 1215 PM AND 1 PM I'M IN ECSTASY SHE EXULTED AS SHE RECORDED HER SIGHTING IN THE BIRD REGISTER A RECORD OF AVIAN COMINGS AND GOINGS THE PARK'S BIRDWATCHERS KEEP IN THE LOEB BOATHOUSE BY THE END OF NOVEMBER MS FREEDMAN'S TALLY WAS 2424 MIGRATING BIRDS OF PREY REPRESENTING 14 SPECIES MISSING AND A LONG SHOT BY ANYONE'S CALCULATIONS WAS THE GOLDEN EAGLE AQUILA CHRYSAETOS A LARGE DARK EAGLE WITH A GOLDEN CROWN LESS WIDESPREAD IN THE EAST THAN THE BALD EAGLE IMMATURE BIRDS OF THE SPECIES HAVE BRILLIANT WHITE PATCHES ON THE WINGS NOW OBSESSIVELY YEARNING TO COMPLETE HER LIST MS FREEDMAN CONTINUED TO SCAN THE HORIZON THEN ON WEDNESDAY DEC 8 LESS THAN A WEEK BEFORE THE OFFICIAL END OF THE FIRST CENTRAL PARK HAWKWATCH MS FREEDMAN HIT THE JACKPOT IN HER WORDS AT FIRST I THOUGHT THE HUGE BIRD COMING IN FROM THE NORTHEAST AROUND SINAI WAS A BALD EAGLE THEN I SAW A BLACK TERMINAL BAND IN THE TAIL WHICH ISN'T BALD EAGLE THEN IT BANKED AS IT CAME CLOSER AND I COULD REALLY SEE THE WHITE IN THE WINGS THE WHITE WING PATCHES OF AN IMMATURE GOLDEN EAGLE I WAS NUMB MS FREEDMAN CONCLUDED I DIDN'T KNOW WHETHER TO LAUGH OR CRY IT WAS JUST AWESOME NOW NOTHING WAS MISSING FROM THE LIST NOW CENTRAL PARK HAS HAD EVERYTHING YOU CAN POSSIBLY GET IN THE NORTHEAST QUADRANT OF THE UNITED STATES POSTSCRIPT MS FREEDMAN HAS HAD LESS SUCCESS IN JOBHUNTING THAN IN HAWKWATCHING SHE IS STILL UNEMPLOYED MS WINN A NEW YORKER IS WRITING A BOOK ON URBAN WILDLIFE 9403100044 940310 BUSINESS BRIEF DIAL PAGE INC ACQUISITION OF 500 CHANNELS OF MOBILE RADIO SET IN TEXAS DIAL PAGE INC SAID IT AGREED TO BUY SOME 500 SPECIALIZEDMOBILERADIO CHANNELS IN TEXAS A MOVE THAT EXTENDS THE COMMUNICATIONS CONCERN'S SMR NETWORK TO A 13TH STATE UNDER THE AGREEMENT DIAL PAGE WILL PURCHASE THE CHANNELS AS WELL AS OTHER RELATED ASSETS WITH 15 MILLION SHARES OF STOCK IN A NEW DIAL PAGE HOLDING COMPANY THAT'S EXPECTED TO BE FORMED LATER THIS YEAR DIAL PAGE IS BUYING THE CHANNELS WHICH ARE LOCATED PRIMARILY IN DALLAS FORT WORTH HOUSTON AUSTIN AND SAN ANTONIO FROM ADVANCED MOBILECOMM INC AS WELL AS SEVERAL OTHER PARTIES FURTHER TERMS WEREN'T DISCLOSED THROUGH A SERIES OF ACQUISITIONS DIAL PAGE BASED IN GREENVILLE SC IS TRYING TO ASSEMBLE A WIRELESS COMMUNICATIONS NETWORK THAT COULD COMPETE WITH CELLULAR TELEPHONE NETWORKS RADIONETWORK USERS SUCH AS TAXI COMPANIES PLUMBERS AND TRUCKERS USE SMR SERVICES 9403100042 940310 REVIEW & OUTLOOK EDITORIAL ASIDES GENERATION GAP SOMEBODY SHOULD NOTIFY THE DARTMOUTH FACULTY THAT THIS IS 1994 NOT 1968 STILL LIVING IN A TIME WARP THEY RECENTLY VOTED TO KICK THE ROTC CONTINGENT OFF CAMPUS THE OFFICERS' TRAINING PROGRAM PROVIDES MUCHNEEDED SCHOLARSHIP MONEY FOR SOME TWODOZEN STUDENTS WHICH IS A MAJOR REASON WHY THE DARTMOUTH STUDENT BODY ITSELF VOTED OVERWHELMINGLY TO KEEP ROTC ON CAMPUS BUT THE TENURED RADICALS CLEARLY OBLIVIOUS TO THE TREMENDOUS TUITION BURDENS THAT ARE RAISED ANNUALLY TO PAY THEIR SALARIES ARE ACTING MIFFED BECAUSE PRESIDENT CLINTON'S GAYSINTHEMILITARY COMPROMISE DOESN'T MEET THEIR PC STANDARDS IT'S ALMOST A SHAME THAT TODAY'S STUDENTS ARE SO MUCH BETTER BEHAVED AND MORE SERIOUS THAN THEIR PLAYFUL '60S PREDECESSORS OTHERWISE THIS INANE POSTURING BY THEIR ELDERS MIGHT LEAD THEM TO OCCUPY THE COLLEGE PRESIDENT'S OFFICE CHANTING A NEW SLOGAN HEY HEY HO HO FOGEY FACULTY'S GOT TO GO 9403100041 940310 LEISURE & ARTS BOOKSHELF VIGNETTES OF LATIN AMERICA BY DAVID ASMAN ALMA GUILLERMOPRIETO'S THE HEART THAT BLEEDS KNOPF 345 PAGES 24 IS A COLLECTION OF EXTRAORDINARILY VIVID PORTRAITS OF THE SEAMIER SIDE OF LIFE IN LATIN AMERICA CULLED FROM 13 ESSAYS ORIGINALLY PUBLISHED IN THE NEW YORKER FROM 1989 TO 1993 EACH STORY IS A CHARACTER SKETCH OF ONE ASPECT OF A LATIN AMERICAN CITY OR REGION HER ESSAYS INTRODUCE THE READER TO HIRED ASSASSINS IN MEDELLIN COLOMBIA TO PROFESSIONAL GARBAGE PICKERS IN MEXICO CITY TO HOPELESSLY CORRUPT POLITICIANS IN RIO TO MURDEROUS GUERRILLAS IN LIMA BY DELVING DEEPLY INTO A MICROCOSMIC ASPECT OF ONE LOCALE MS GUILLERMOPRIETO ATTEMPTS TO PROVIDE US WITH A TASTE FOR AN ENTIRE CULTURE THIS IS CERTAINLY AN ACCEPTABLE JOURNALISTIC FORMULA AND HER TIRELESS AND FEARLESS REPORTING AS WELL AS HER ELOQUENT DESCRIPTIONS AND CHARACTER SKETCHES HOLD THE READER'S ATTENTION RAPT EVEN SO MS GUILLERMOPRIETO OFFERS LESS OF A CLEAR WIDEANGLED VISION OF LATIN AMERICA THAN A SERIES OF CARICATURES IN WHICH LATIN AMERICANS ARE DIVIDED INTO TWO CLASSES VICTIMS AND EXPLOITERS OF COURSE THERE IS PLENTY TO SUPPORT SUCH A CYNICAL VISION OF LATIN AMERICAN CULTURE THE NUMBER AND VARIETY OF INJUSTICES IN LATIN AMERICA ARE SHOCKING TO THOSE OF US WHO HAVE COME TO RELY THOUGH LESS AND LESS ON THE RULE OF LAW AS A SECURITY BLANKET HOWEVER MS GUILLERMOPRIETO'S INCESSANT FOCUS ON THE EXPLOIT OR BE EXPLOITED STORIES IS ULTIMATELY WEARYING IN ITS EXAGGERATION THERE ARE FAR MORE APPEALING SIDES TO THE LATIN CHARACTER THAT DESERVE ATTENTION OCCASIONALLY MS GUILLERMOPRIETO ACKNOWLEDGES THIS PARTICULARLY AS REGARDS LATIN AMERICANS' ALMOST FANATICAL DEVOTION TO FAMILY TIES BUT EVEN THIS COMPLIMENT IS USUALLY ATTACHED TO NASTY CHARACTERS FOR INSTANCE THE DEATHSQUAD LEADER WHO'S A GREAT FAMILY MAN MOST IMPORTANTLY MS GUILLERMOPRIETO IGNORES ONE OF THE MOST REVOLUTIONARY DEVELOPMENTS IN THE HISTORY OF LATIN AMERICAN CULTURE THE RISE OF INDIVIDUALISM AND ECONOMIC COMPETITIVENESS IN A REGION THAT HAS FOR CENTURIES BEEN MIRED IN THE THIRD WORLD QUICKSAND OF COLLECTIVISM AND MERCANTILISM MUCH OF WHAT MS GUILLERMOPRIETO LAMENTS ARE THE GROWING PAINS OF A CULTURE STRIVING TO BREAK OUT OF CENTURIES OF UNDERDEVELOPMENT THE DICKENSONIAN MESSAGE IN MS GUILLERMOPRIETO'S BOOK IS THAT PROGRESS IS THE ENEMY IN LATIN AMERICA AND HER ESSAYS INVARIABLY SERVE AS VEHICLES TO CONDEMN THE ENCROACHMENT OF MODERNITY THUS MOUNTAINS OF GARBAGE DISCARDED BY MEXICO'S NOUVEAU RICHE AND FED UPON BY THE POOR BECOME HER METAPHOR FOR MEXICO'S MONUMENTAL TRANSITION FROM A CLOSED PROTECTIONIST MARKET TO AN ACTIVE PARTICIPANT IN THE GLOBAL TRADING SYSTEM HER BARELY CONCEALED CONTEMPT FOR THE REGION'S NEWFOUND CONSUMERISM IS CONDENSED IN HER DESCRIPTION OF THE EMERGING FASTFOOD OUTLETS IN THE REGION EVEN THE NORTH AMERICAN FREE TRADE AGREEMENT IS DESCRIBED IN FOREBODING TERMS AS LEADING TO A CONTAMINATION OF LATIN CULTURE PERHAPS IT IS ALSO TRUE SHE WRITES THAT NEITHER NORTENOS NOR ANY OTHER MEXICANS HAVE ANYTHING TO FEAR FROM A TREATY THAT ALLOWS FOREIGN MANUFACTURERS TO COME POURING OVER THE BORDER BUT WHETHER THE ECONOMIC APERTURA OPENING WILL LEAD TO A FINAL DROWNING OF MEXICAN CULTURE IN UNITED STATES SAUCE IS NOT AN ENTIRELY IDLE QUESTION AT LEAST NOT WHEN ONE IS SITTING IN A KENTUCKY FRIED CHICKEN OUTLET AND EATING SOME OF THE FIRST FASTFOOD TACOS THAT TACO BELL IS HOPING TO FIND A MASS MARKET FOR IN MEXICO CITY PERHAPS INTELLECTUALS WHO CAN AFFORD THE BEST RESTAURANTS AND PRODUCTS THAT LATIN AMERICAN CULTURE HAS TO OFFER CAN TURN UP THEIR NOSES AT CHEAP IMPORTS AND CONCEPTS THAT ARE FLOODING PREVIOUSLY RESTRICTED MARKETS BUT THEY ALLOW LATIN AMERICANS TO REVERSE THEIR DEPENDENCE ON TRADITIONAL POWER BLOCKS UPPERCLASS ENTREPRENEURS CAN START THEIR OWN BUSINESSES WITH PREVIOUSLY PROHIBITED COMPUTERS AND OTHER ELECTRONIC ITEMS FISHERMEN CAN FINALLY AFFORD A SMALL EVINRUDE MOTOR TO BREAK OUT OF THE MONOPOLISTIC FISHING GUILDS AND HOUSEWIVES ARE NO LONGER CONDEMNED TO SPEND HALF THEIR DAY HAND WASHING CLOTHES THANKS TO AFFORDABLE WASHING MACHINES MS GUILLERMOPRIETO'S PERSPECTIVES ARE NOT ENTIRELY LIMITED BY HER LUDDITE PERSPECTIVE ON PROGRESS SHE DOES FOR EXAMPLE PROVIDE INTERESTING INSIGHTS INTO THE DESTRUCTIVE EFFECTS OF THE SHOCK THERAPIES TO WHICH MANY LATIN ECONOMIES WERE EXPOSED BY IMF STRATEGISTS HOWEVER SHE INCORRECTLY LUMPS ALL NEOLIBERAL FORMULAS TOGETHER IN THE SAME FREEMARKET BASKET EVEN THOUGH SOME LIKE CHILE'S OBVIOUSLY HAD GREATER SUCCESS THAN OTHERS THE BOOK CONTAINS OTHER VALUABLE INSIGHTS FOR EXAMPLE WE ARE PRESENTED WITH A CLEAR EXPLANATION OF WHY ANYONE MIGHT CONSIDER JOINING A PSYCHOTIC OUTFIT LIKE THE FANATICAL SENDERO LUMINOSO IN PERU YOU HAVE TO REALIZE THAT UNTIL THE DAY WE GRADUATED FROM HIGH SCHOOL ALL OF US BELIEVED THAT THE FIRST MAN WAS ADAM AND THE FIRST WOMAN WAS EVE ONCE WE LEARNED THAT THE BIBLE COULD BE WRONG EVERYTHING WAS UP FOR GRABS EXPLAINS A STUDENT OF SENDERO FOUNDER CARLOS GUZMAN AN EAR FOR SUCH INSIGHTS SUPERB INTERVIEW SKILLS AND A WILLINGNESS TO GET OFF THE BEATEN JOURNALISTIC TRACK MAKE THIS BOOK WORTHWHILE WOULD THAT MS GUILLERMOPRIETO HAD STRAYED A LITTLE FURTHER TO DISCOVER LATIN AMERICA'S RICH BEAUTY AND TREMENDOUS POTENTIAL MR ASMAN EDITS THE AMERICAS COLUMN 9403100040 940310 ILLUSIONS ABOUT WAGES BY BRUCE BARTLETT SINCE HITTING A PEAK OF 77 IN JUNE 1992 THE CIVILIAN UNEMPLOYMENT RATE HAS FALLEN STEADILY TO ITS CURRENT LEVEL OF 65 AS THE PROBLEM OF UNEMPLOYMENT HAS FADED HOWEVER CONCERN ABOUT THE QUALITY OF JOBS HAS RISEN IN PARTICULAR THERE IS GROWING CONCERN ABOUT THE LEVEL OF WAGES FOR EXAMPLE TUESDAY'S LABOR DEPARTMENT FIGURES WHICH SHOWED PRODUCTIVITY RISING IN 1993 AT A 17 ANNUAL RATE WHILE WAGES ROSE ONLY 06 LED THE WASHINGTON POST TO DUB THIS THE RAISELESS EXPANSION AND LABOR SECRETARY ROBERT REICH IS FOND OF POINTING OUT THAT ACCORDING TO THE BUREAU OF LABOR STATISTICS REAL INFLATIONADJUSTED AVERAGE EARNINGS FOR WORKERS ON PRIVATE NONAGRICULTURAL PAYROLLS IN 1982 DOLLARS HAVE FALLEN TO 739 PER HOUR IN 1993 FROM 855 PER HOUR IN 1973 REAL WEEKLY EARNINGS ALSO IN 1982 DOLLARS HAVE FALLEN EVEN MORE SHARPLY TO 255 FROM 315 OVER THE SAME PERIOD UNFORTUNATELY THESE WIDELY CITED DATA TELL US FAR LESS ABOUT THE ECONOMIC CONDITION OF AMERICAN WORKERS THAN IS COMMONLY BELIEVED THE DISPARITY BETWEEN WEEKLY AND HOURLY WAGES IS EXPLAINED BY THE DECLINE IN AVERAGE WEEKLY HOURS WHICH FOR ALL PRIVATE NONAGRICULTURAL WORKERS HAVE FALLEN TO 345 IN 1993 FROM 387 IN 1964 AMONG THE REASONS FOR THIS REDUCTION ARE A DECLINE IN ACTUAL HOURS WORKED AN INCREASE IN PARTTIME AND TEMPORARY EMPLOYMENT AND THE CHANGING COMPOSITION OF INDUSTRY WORKERS IN THE SERVICE SECTOR FOR EXAMPLE TEND TO WORK FEWER HOURS THAN THOSE IN MANUFACTURING 325 HOURS PER WEEK FOR SERVICE WORKERS COMPARED WITH 41 HOURS FOR THOSE IN MANUFACTURING IN 1992 MOREOVER HOURS WORKED IN SERVICES HAVE DECLINED OVER TIME WHILE THOSE IN MANUFACTURING HAVE HELD STEADY THUS AS TOTAL EMPLOYMENT HAS SHIFTED AWAY FROM MANUFACTURING TOWARD SERVICES THE WORK FORCE HAS SHIFTED AWAY FROM BUSINESSES WHERE WEEKLY HOURS ARE HIGH TO THOSE WHERE THEY ARE LOWER IN 1953 35 OF ALL WORKERS WERE EMPLOYED IN MANUFACTURING AND 58 IN SERVICES BY 1993 ONLY 15 OF WORKERS WERE EMPLOYED IN MANUFACTURING WHILE THOSE IN SERVICES ACCOUNTED FOR 79 OF THE LABOR FORCE THE SHIFT TO PARTTIME AND TEMPORARY EMPLOYMENT IS GENERALLY CONSIDERED TO BE BAD FOR WORKERS SINCE SUCH JOBS TEND TO PAY LESS THAN COMPARABLE FULLTIME WORK HOWEVER THIS IS NOT UNIVERSALLY THE CASE WAGES AND BENEFITS FOR MANY TEMPORARY WORKERS ARE NOW EQUAL TO THOSE IN REGULAR FULLTIME POSITIONS IN FACT THE VAST BULK OF WORKERS IN PARTTIME JOBS HOLD SUCH JOBS BECAUSE THEY PREFER THEM IN 1992 148 MILLION WORKERS VOLUNTARILY HELD PARTTIME JOBS WHILE 65 MILLION DID SO ONLY FOR LACK OF A FULLTIME JOB ALTHOUGH THE NUMBER OF INVOLUNTARY PARTTIMERS IS A MATTER OF CONCERN THERE ARE ALSO A CONSIDERABLE NUMBER OF PEOPLE WORKING FULLTIME WHO WOULD PREFER TO WORK PARTTIME THIS IS ESPECIALLY THE CASE AMONG WOMEN WITH CHILDREN IT IS ALSO WORTH MENTIONING THAT THE CALCULATION OF HOURS WORKED AND WAGES EARNED INCLUDES ONLY NONSUPERVISORY OR PRODUCTION WORKERS THUS EXCLUDING THOSE IN MANAGEMENT AND MOST SALARIED WORKERS WHO OFTEN WORK MUCH MORE THAN 40 HOURS A WEEK AND HAVE HIGHER PAY ALSO EXCLUDED ARE SELFEMPLOYED WORKERS WHO ALSO TEND TO WORK CONSIDERABLY MORE THAN 40 HOURS A WEEK SINCE NONSUPERVISORY WORKERS ARE A DECLINING SHARE OF THE WORK FORCE AND THE NUMBER OF SELFEMPLOYED WORKERS IS RISING THE DATA ON WORK HOURS ARE DISTORTED ANOTHER PROBLEM WITH THE DATA ARISES FROM PEOPLE WHO REFUSE TO ANSWER QUESTIONS ABOUT THEIR INCOME ON BLS SURVEYS OVER ONEFOURTH OF ALL RESPONDENTS NOW REFUSE TO ANSWER SUCH QUESTIONS THIS HAS FORCED THE BLS TO IMPUTE THEIR INCOME USING VARIOUS STATISTICAL TECHNIQUES RESEARCH INDICATES THAT THE RESULTING DATA TEND TO UNDERSTATE INCOME FOR A LARGE SEGMENT OF THE POPULATION BECAUSE PEOPLE WITH HIGH INCOMES ARE MORE LIKELY NOT TO REPORT THEIR INCOME THAN THOSE WITH LOW INCOMES THUS THE WAGE DATA PUBLISHED BY THE BLS MAY BE SIGNIFICANTLY LOWER THAN ACTUAL WAGES IT IS ALSO VERY IMPORTANT TO UNDERSTAND THAT THE BLS DATA ON WORK HOURS ARE FOR TOTAL HOURS PAID NOT WORKED WHEN A WORKER RECEIVES ADDITIONAL PAID VACATION TIME HE IS RECEIVING A REAL INCREASE IN INCOME IN THE SENSE THAT HIS PAY FOR ACTUAL HOURS WORKED HAS INCREASED BUT THIS WOULD NOT BE REFLECTED IN THE DATA THUS IT IS OFTEN INCORRECTLY STATED THAT AMERICAN WORKERS HAVE NOT HAD ANY INCREASE IN LEISURE TIME FOR MANY YEARS THIS IS LARGELY A MISUNDERSTANDING OF THE DATA CONFUSING HOURS OF WORK PAID WITH ACTUAL HOURS OF WORK THERE HAS IN FACT BEEN AN ALMOST CONTINUOUS DECLINE IN ACTUAL HOURS WORKED SINCE WORLD WAR II NOT ONLY DO THE DATA FOR WORK HOURS AND EARNINGS FAIL TO ACCOUNT FOR PAID VACATIONS AND HOLIDAYS THEY FAIL TO ACCOUNT FOR BENEFITS IN GENERAL NEEDLESS TO SAY THIS IS A HUGE GAP BECAUSE BENEFITS MADE UP 39 OF TOTAL EMPLOYEE COMPENSATION IN 1992 ACCORDING TO THE US CHAMBER OF COMMERCE AND BENEFITS HAVE BEEN THE FASTEST RISING ELEMENT OF COMPENSATION FOR MANY YEARS SEE CHART LARGELY BECAUSE BENEFITS SUCH AS HEALTH INSURANCE ARE MAINLY TAXFREE WHILE THE TAX RATE ON MONEY INCOME HAS RISEN LAST IT SHOULD BE NOTED THAT THE CALCULATION OF REAL WAGES IS DEPENDENT ON THE QUALITY OF THE INFLATION INDEX USED IN THE CASE OF WAGES THE INDEX GENERALLY USED IS THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS A SPECIAL INDEX THAT DIFFERS SLIGHTLY FROM THE MORE WIDELY REPORTED CPI FOR ALL URBAN CONSUMERS BOTH CPIS SUFFER FROM PROBLEMS THAT HAVE TENDED TO OVERSTATE THE ACTUAL RATE OF INFLATION AMONG THESE ARE THE INABILITY OF THE INDEXES TO FULLY CAPTURE IMPROVEMENTS IN QUALITY SHIFTS IN CONSUMPTION PATTERNS FROM HIGHERPRICED GOODS TO LOWERPRICED GOODS FROM BEEF TO CHICKEN FOR EXAMPLE AND THE SHIFT TOWARD DISCOUNT RETAILING IT IS WIDELY BELIEVED THAT THESE AND OTHER FACTORS MAY BE CAUSING THE CPI TO OVERSTATE THE RATE OF INFLATION BY AS MUCH AS 06 PER YEAR OBVIOUSLY IF THE INDEXES USED TO ADJUST WAGE RATES FOR INFLATION ARE EXCESSIVELY HIGH THEN REAL WAGE RATES WILL APPEAR TO BE LOWER THAN THEY ACTUALLY ARE IN CONCLUSION THE CONCERN ABOUT FALLING WAGES IS LARGELY A STATISTICAL ILLUSION THIS FACT IS CONFIRMED BY THE CONTINUOUS UPWARD RISE IN BROADER MEASURES OF INCOME SUCH AS REAL PER CAPITA GROSS DOMESTIC PRODUCT AND REAL MEDIAN FAMILY INCOME REAL PER CAPITA GDP IN 1987 DOLLARS HAS RISEN TO 19874 IN 1993 FROM 10892 IN 1959 WHILE REAL MEDIAN FAMILY INCOME IN 1992 DOLLARS ROSE TO 36812 IN 1992 FROM 30661 IN 1967 MOREOVER IF INCOMES WERE REALLY DECLINING IT WOULD QUICKLY BECOME APPARENT FROM THE DATA ON CONSUMPTION IN FACT BY EVERY MEASURE CONSUMPTION CONTINUES TO GROW YEAR AFTER YEAR GIVING EVERY INDICATION THAT THE STANDARD OF LIVING FOR THE VAST MAJORITY OF AMERICANS CONTINUES TO RISE IN THE END AGGREGATE WAGE DATA MAY NOT BE A VERY GOOD WAY TO JUDGE THE WELLBEING OF AMERICAN WORKERS NOT ONLY ARE THE DATA FLAWED BUT IN RECENT YEARS THEIR VALUE HAS BEEN REDUCED BY THE GROWING DIVERGENCE OF WAGE RATES WHEREAS IN THE PAST WORKERS IN THE SAME LINE OF WORK OR IN THE SAME INDUSTRY TENDED TO BE PAID ABOUT THE SAME TODAY THERE IS A WIDE DISPARITY AMONG WORKERS' WAGES IN PARTICULAR THOSE WITH EDUCATION AND SKILLS TEND TO MAKE CONSIDERABLY MORE THAN LESSSKILLED LESSEDUCATED WORKERS THUS MANY WORKERS HAVE SEEN SUBSTANTIAL REAL INCREASES IN THEIR WAGES WHILE OTHERS HAVE HAD REAL REDUCTIONS THIS IS THE INEVITABLE PRICE OF MOVING TOWARD AUTOMATED HIGHTECH PRODUCTION AND A KNOWLEDGEBASED ECONOMY IT IS NOT POSSIBLE TO GENERALIZE ABOUT THE TREND IN WAGES WITHOUT TAKING INTO ACCOUNT THIS FACT MR BARTLETT IS A FELLOW AT THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VA 9403100039 940310 REVIEW & OUTLOOK EDITORIAL PLEASE DON'T FEED THE LITIGATORS DEALING WITH REGULATION CAN BE A ZOO LITERALLY CONSIDER THE PREDICAMENT OF THE FAMOUS SAN DIEGO ZOO A PATRON HAS ACCUSED IT OF VIOLATING THE AMERICANS WITH DISABILITIES ACT BECAUSE OF RESTRICTIONS PLACED ON ASSISTANCE DOGS IN THE PARK THE CANINES NOT SURPRISINGLY HAVE A DISQUIETING EFFECT ON SEVERAL OF THE ANIMAL SPECIES SO MUCH SO THAT THE US DEPARTMENT OF AGRICULTURE HAS PUT SAN DIEGO'S AND OTHER ZOOKEEPERS ON NOTICE THAT THEY WILL BE CITED FOR ANY HARM TO CAPTIVE WILDLIFE CAUSED BY SEEINGEYE OR OTHER SUCH DOGS MEANTIME THE JUSTICE DEPARTMENT IS PONDERING WHAT ACTION TO TAKE ON THE ADA COMPLAINT IT INVOLVED AN EPILEPTIC WHO COULDN'T GAIN ACCESS FOR HER SERVICE DOG THIS KIND OF FOURLEGGED HELPER CAUSES ZOO OFFICIALS EVEN MORE ANXIETY THAN THE CERTIFIABLY TRAINED GUIDE DOGS TYPICALLY USED BY THE BLIND BUT BOTH CAN BE A BAD MATCH FOR SOME BIRDS CATS AND PRIMATES EVEN THE BARKINGSEAL PEN IS A TROUBLE SPOT SAN DIEGO HAD A POLICY OF ASKING THAT ALL DOGS BE CHECKED AT AN ONSITE KENNEL WITH A ZOO EMPLOYEE THEN ASSIGNED TO ESCORT EACH IMPAIRED VISITOR NOW TRYING TO ERR ON THE SIDE OF ACCESS SAYS SPOKESMAN JEFF JOUETT IT IS ALLOWING TRAINED DOGS ON TO MOST OF THE GROUNDS WITH A STAFFER STILL ALONGSIDE TO MONITOR IF THE DOG PROVES DISRUPTIVE IT HAS TO LEAVE JUST AS WOULD A PERSON WHO WAS DISTURBING THE ANIMALS ZOO OFFICIALS HOPE THIS WILL PASS MUSTER IN WASHINGTON IF NOT AND PERHAPS IN ANY CASE THE ZOO IS STUDYING WAYS TO MODIFY ITS LAYOUT TO ACCOMMODATE THE DOGS THIS NOT ONLY COULD BE EXPENSIVE BUT IN SOME SITUATIONS CONTRAVENES THE EXISTING INTENT WHICH IS TO GET GUESTS AS CLOSE TO THE NATURAL HABITAT OF THE EXHIBITS AS POSSIBLE EVERYONE INVOLVED RECOGNIZES THE IMPORTANCE OF A GUIDE OR SERVICE DOG TO THE DISABLED PERSON INCLUDING THE SENSE OF INDEPENDENCE THAT SUCH ASSISTANCE AFFORDS BUT HERE AS IN SO MANY POTENTIAL RUBS WITH THE DISABILITIES LAW THE SITUATION CRIES OUT FOR COMMON SENSE INCLUDING A REALIZATION THAT NATURE WILL NOT ALLOW ALL THE DISABLED REASONABLY TO JOIN IN EVERY SINGLE ACTIVITY THAT THEY MIGHT WISH MR JOUETT SAYS ABOUT FIVE VISITORS A MONTH BRING ASSISTANCE DOGS TO THE ZOO AND AFFILIATED WILDERNESS PARK AGAINST MORE THAN 350000 WHO DON'T AT SOME POINT ABLEBODIED PEOPLE'S PREROGATIVES COUNT TOO AS WE SAID THE NATURE OF TODAY'S LITIGATION AND POLITICSDRIVEN REGULATION OFTEN IS ENOUGH TO MAKE ONE WANT TO GO BANANAS WITH THE MONKEYS AT THE SAN DIEGO ZOO WHICH COINCIDENTALLY IS ALSO DOING LOOPS TRYING TO GET THE FISH & WILDLIFE SERVICE TO ALLOW IN A COUPLE OF DOMESTICATED CHINESE PANDAS IT'S GETTING HARDER AND HARDER TO TELL WHO'S MARVELING AT WHOM 9403100038 940310 HEARD ON THE STREET ODDS ARE MARKET'S DROP WON'T WORSEN STUDY SHOWS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL DON'T WORRY IT'S JUST A NORMAL HEALTHY CORRECTION VETERAN INVESTORS HAVE HEARD THAT PHRASE HUNDREDS OF TIMES FROM BROKERS AND MARKET COMMENTATORS AND THEY ARE HEARING IT NOW WHAT ARE THE ODDS IT'S TRUE THREE OUT OF FOUR ABOUT 74 OF ALL DIPS IN THE MARKET DEFINED AS A 5 DROP IN THE DOW JONES INDUSTRIAL AVERAGE NEVER DEVELOP INTO ANYTHING SERIOUS ACCORDING TO A STUDY CONDUCTED AT THE WALL STREET JOURNAL'S REQUEST BY NED DAVIS RESEARCH IN NOKOMIS FLA THE CURRENT DECLINE BEGAN FIVE WEEKS AGO SPURRED BY A FEDERALRESERVEINSPIRED UPTICK IN INTEREST RATES SO FAR STOCKS HAVE FALLEN ONLY MILDLY DESPITE A FEW HEADLINES TO THE CONTRARY THE INDUSTRIAL AVERAGE REACHED A RECORD 397836 ON JAN 31 THEN FELL 4 THROUGH MARCH 1 IN THE PAST FEW DAYS IT HAS BOUNCED BACK FEEBLY TO 385341 ABOUT 3 BELOW ITS HIGH IS THIS DECLINE DESTINED TO STAY AN INNOCENT LITTLE THING OR WILL IT GROW INTO A BIG PUNISHING BRUISER THERE'S NO SURE WAY TO TELL BUT HERE'S WHAT THE MARKET PROS WATCH A 72 DECLINE IS THE AREA TO KEEP AN EYE ON SAYS NED DAVIS PRESIDENT OF THE RESEARCH FIRM BEARING HIS NAME ONCE STOCKS SLIDE A BIT MORE THAN 7 HE SAYS THERE'S AN EVEN CHANCE THE DOWNTURN WILL WORSEN INTO A FULLFLEDGED BEAR MARKET ONE COMMON DEFINITION OF A BEAR MARKET IS ANY STOCKMARKET DECLINE OF 20 OR MORE ON THAT BASIS THERE HAVE BEEN NINE BEAR MARKETS IN THE PAST 50 YEARS MR DAVIS ALSO COUNTS AS A BEAR MARKET ANY DOWNTURN OF 13 OR WORSE THAT LASTS SIX MONTHS OR MORE UNDER HIS DEFINITION BEAR MARKETS HAVE HAPPENED ABOUT ONCE EVERY THREE YEARS MR DAVIS EXPECTS TO SEE AT THE LEAST A BIG CORRECTION PRESIDENT CLINTON IS UNDER SIEGE WITH THIS WHITEWATER PROBLEM PEOPLE ARE TURNING AGAINST HIS HEALTHCARE PLAN THE ECONOMY IS IN DANGER OF OVERHEATING THIS COULD FORCE THE FED TO RAISE INTEREST RATES FURTHER STOCKS ARE AT HIGH VALUATIONS AND HAVE BEEN FOR TWO YEARS NEW MUTUALFUND INVESTORS HAVE LITTLE EXPERIENCE WITH MARKET DECLINES THEY MIGHT PANIC ALL IN ALL MR DAVIS SAYS IT'S A PERFECT BACKGROUND FOR A BEAR MARKET PHILIP H SMITH AN ANALYST AT BIRINYI ASSOCIATES IN GREENWICH CONN IS MUCH MORE OPTIMISTIC SERIOUS DECLINES HE SAYS HAVE ALWAYS BEEN PRECEDED BY EXCESSES OF POSITIVE SENTIMENT ABOUT STOCKS WHEN THE MARKET STARTED TO SLIP IN THE SUMMER OF 1987 HE SAYS THE PREVAILING ATTITUDE WAS WELL BIG DEAL THERE'S NO PROBLEM BY CONTRAST HE SAYS INVESTORS TODAY LACK THAT OVERCONFIDENT SWAGGER IN FACT GLOOMANDDOOM SENTIMENT ABOUNDS THE CURRENT DECLINE MR SMITH SAYS IS SPECIFICALLY TIED TO INTERESTRATE BOOSTS THE CONCERNS ARE WELL DEFINED IT'S THE DEVIL YOU KNOW THE TIME TO WORRY HE SUGGESTS IS WHEN THE MARKET DROPS AND YOU DON'T HAVE A REASON ONE MORE COMFORTING FACTOR IN MR SMITH'S VIEW IS BIRINYI ASSOCIATES' STUDIES OF TRADINGVOLUME TRENDS THE FIRM VIEWS IT AS HEALTHY IF VOLUME IS HIGH WHEN STOCKS ARE RISING AND LOW WHEN THEY'RE FALLING SO FAR HE SAYS THAT'S BEEN THE CASE OTHER MARKET PROFESSIONALS SAY THEY AREN'T SURE IF THE CURRENT MILD DROP WILL GROW INTO SOMETHING MORE OMINOUS BUT THEY ARE PAYING CLOSE HEED TO THEIR FAVORITE WARNING SIGNALS RICHARD MCCABE CHIEF MARKET ANALYST AT MERRILL LYNCH SAYS THERE ARE FIVE WARNING SIGNS THAT A PARTICULAR DECLINE IS NOT JUST A NICE PLACID 5 DROP FOUR OF THOSE FIVE ARE EVIDENT TO SOME DEGREE RIGHT NOW HE SAYS NAMELY TECHNICAL FACTORS DETERIORATION IS AN OMINOUS SIGN FOR EXAMPLE MR MCCABE SAYS MONEY MANAGERS' CASH LEVELS ARE LOW SPECULATION IS RIFE IN SMALL STOCKS AND COMPANIES ARE RUSHING TO PUMP OUT NEW ISSUES OF STOCK SELLING INTENSITY ON FEB 4 THE DAY THE FED RAISED SHORTTERM INTEREST RATES THE DOW JONES INDUSTRIALS FELL 96 POINTS SINCE THEN THERE HAVE BEEN SEVERAL DAYS IN WHICH THE NUMBER OF LOSING STOCKS SUBSTANTIALLY EXCEEDED THE NUMBER OF GAINERS BUT MR MCCABE SAYS THIS INDICATOR ISN'T LOOKING TOO BAD YET BECAUSE THE MAJOR AVERAGES ARE STILL ABOVE THEIR TREND LINES FEEBLE RALLIES AFTER DECLINES BUYERS NORMALLY RUSH IN TO SCOOP UP BARGAINS AND THE MARKET SHOULD STAGE COMEBACK RALLIES WHEN THAT DOESN'T HAPPEN IT'S A BAD SIGN MR MCCABE SAYS HE ISN'T SURE YET ABOUT HOW TO CLASSIFY THE CURRENT SITUATION BUT SAYS I'M A LITTLE CONCERNED FALTERING FINANCIALS WEAKNESS IN FINANCIAL STOCKS AND OTHER INTERESTSENSITIVE STOCKS SUCH AS UTILITIES OFTEN SUGGESTS THAT A DECLINE ISN'T GOING TO BE MILD MR MCCABE SAYS WEAKNESS IN THESE STOCK GROUPS OFTEN FORETELLS AN ADVANCE IN INTEREST RATES LATELY THE STOCKS HAVE BEEN WEAK EXCESSIVE BULLISHNESS ON THE OTHER HAND MR MCCABE SAYS HIS FIFTH WARNING SIGN EXCESSIVE INVESTOR BULLISHNESS SEEMS ABSENT HERE HIS LINE OF REASONING PARALLELS MR SMITH'S FOR EXAMPLE MR MCCABE SAYS SALES OF PUT OPTIONS A BET THAT STOCK PRICES WILL DECLINE RECENTLY EXCEEDED THE SALES OF CALL OPTIONS A BET THAT STOCK PRICES WILL RISE THE PUT/CALL RATIO IS THE HIGHEST EVER NOW HE SAYS CERTAINLY A SIGN THAT INVESTORS AREN'T COMPLACENT OVERALL MR MCCABE SAYS HE THINKS MOST STOCKS MADE THEIR HIGHS LAST YEAR HE ENVISIONS 1994 AS A CORRECTIVE YEAR ESPECIALLY SINCE STOCKS HAVE FALLEN BADLY IN SEVEN OF THE PAST EIGHT YEARS IN WHICH A US PRESIDENT WAS SERVING THE SECOND YEAR OF HIS TERM JIM MELCHER PRESIDENT OF BALESTRA CAPITAL IN NEW YORK SAYS THE KEY POINT TO WATCH IS THE FLOW OF INDIVIDUAL INVESTORS' MONEY INTO MUTUAL FUNDS IT ISN'T OVER YET HE SAYS BUT THE FLOW HAS SLOWED BECAUSE OF RATE ANGST PORTFOLIO MANAGERS ARE FRETTING ABOUT THE MARKET MR MELCHER SAYS BUT THEY HAVE NO CHOICE BUT TO INVEST THE RIVER OF CASH INFLOWS YOU'VE GOT A WHOLE BUNCH OF MONEY MANAGERS OUT THERE WHO HAVE BEEN FORCED INTO STOCKS THAT THEY DON'T WANT TO BE IN HE SAYS DO THAT TO RATS IN A LABORATORY AND THEY GO INSANE MR MELCHER HAS RAISED A LITTLE CASH IN HIS PORTFOLIOS BUT SAYS HE WOULD GET FULLY INVESTED ON A SERIOUS CORRECTION 10 OR MORE HE SAYS THE US HAS THE STRONGEST ECONOMY IN THE WORLD INFLATION IS DORMANT AND LABOR IS QUIESCENT EVEN COOPERATIVE SO THERE'S NO REASON FOR A BEAR MARKET HE SAYS WHAT ABOUT THE TIMEHONORED ADVICE THAT INVESTORS SHOULD BUY ON DIPS SCOTT LUMMER OF IBBOTSON ASSOCIATES IN CHICAGO STUDIED WHAT HAPPENS IN THE MONTH FOLLOWING ANY CALENDAR MONTH IN WHICH STANDARD & POOR'S 500 STOCK INDEX FELL 5 OR MORE HE FOUND NO CONSISTENT PATTERN IN THE AFTERMATH THERE HAVE BEEN 82 SUCH DIPS SINCE 1926 MR LUMMER FOUND THE MARKET ROSE 44 TIMES IN THE FOLLOWING MONTH AND DECLINED 38 TIMES A PERFECTLY NORMAL RATIO IN EIGHT CASES THE MARKET ROARED BACK 10 OR MORE WITHIN A MONTH BUT IN SIX CASES IT FELL A FURTHER 10 OR MORE SO AT LEAST JUDGING BY MR LUMMER'S ONEMONTH YARDSTICK A STRATEGY OF BUYING THE DIP IS NEITHER PARTICULARLY SHREWD NOR PARTICULARLY DUMB THE MARKET BEHAVES AFTER A 5 DECLINE PRETTY MUCH THE WAY IT BEHAVES THE REST OF THE TIME UNPREDICTABLY MARKET HISTORY SUGGESTS THAT MOST DIPS DECLINES OF 5 IN THE DOW JONES INDUSTRIAL AVERAGE DON'T TURN INTO ANYTHING SERIOUS BUT ONCE THE DOW INDUSTRIALS ARE DOWN 10 THERE'S AN ALMOST EVEN CHANCE THE TOTAL DAMAGE WILL BE 15 OR MORE 9403100037 940310 REVIEW & OUTLOOK EDITORIAL WHO IS PATSY THOMASSON DESPITE SUBPOENAS FOR SIX OTHER WHITE HOUSE AIDES AND THE DEPARTURE OF THE COUNSEL AND THE FISKED'AMATO MEETING PATSY THOMASSON MADE IT BACK INTO THE NEWS YESTERDAY THE NEW YORK POST'S CHRISTOPHER RUDDY REPORTS THAT THREE ANONYMOUS WHITE HOUSE SOURCES PUT HER AT THE MIDDLE OF A CATS AND DOGS SCRAMBLE TO FIND THE COMBINATION TO VINCENT FOSTER'S SAFE THE NIGHT OF HIS DEATH MS THOMASSON IS DIRECTOR OF THE WHITE HOUSE'S OFFICE OF ADMINISTRATION WHICH HANDLES PERSONNEL PAYROLL AND COMPUTER MATTERS AND MR RUDDY REPORTS SAFE COMBINATIONS THE OFFICER IN CHARGE OF SECURITY WAS OUT OF TOWN BUT THE SAFE WAS EVENTUALLY OPENED IN THE WEE HOURS OF THE MORNING HIS SOURCES SAY AND DOCUMENTS WERE REMOVED AND SENT TO THE CLINTON'S PERSONAL LAWYER DAVID KENDALL OF WILLIAMS & CONNOLLY YESTERDAY WHITE HOUSE CHIEF OF STAFF MACK MCLARTY TOLD REPORTERS THAT TO THE BEST OF HIS KNOWLEDGE THERE WAS NO SAFE IN MR FOSTER'S OFFICE I DON'T THINK THERE WAS A SAFE AS I UNDERSTAND IT EXPERIENCE WITH THIS ADMINISTRATION FORCES US TO INQUIRE WHAT MR MCLARTY UNDERSTANDS AS A SAFE PREVIOUS MEMBERS OF THE COUNSEL'S OFFICE SAY IT ALWAYS USED TO HAVE ONE FOR THAT MATTER EVEN EXPLICIT WHITE HOUSE DENIALS LOOK THIN AFTER ONE OF THEM WAS DIRECTLY CONTRADICTED BY PRESIDENT CLINTON'S ADMISSION THAT HE KNEW ABOUT WHITE HOUSE CONTACTS WITH REGULATORS OVER WHITEWATER MATTERS MS THOMASSON IS BEST UNDERSTOOD AS THE WHITE HOUSE WALDO IT WAS PREVIOUSLY UNDERSTOOD THAT SHE BERNARD NUSSBAUM AND MARGARET WILLIAMS MRS CLINTON'S CHIEF OF STAFF DID VISIT MR FOSTER'S OFFICE THE NIGHT OF HIS DEATH MS THOMASSON WAS ALSO AT THE CRUCIAL SIXHOUR MEETING ON MAY 15 WITH THE FBI AND ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III THAT LED TO THE FIRING OF THE WHITE HOUSE TRAVEL OFFICE'S STAFF FOUR DAYS LATER IN OCTOBER SHE APPEARED BEFORE A HOUSE APPROPRIATIONS SUBCOMMITTEE TO DISCUSS A GENERAL ACCOUNTING OFFICE REPORT THAT CRITICIZED THE WHITE HOUSE FOR LAX PERSONNEL POLICIES INCLUDING RETROACTIVE PAY RAISES DUAL PAYMENTS AND THE BACKDATING OF FORMS THIS HEARING IN TURN LED TO AN EXTENDED CAMPAIGN BY REP FRANK WOLF A VIRGINIA REPUBLICAN OVER CLEARANCE PROCEDURES FOR WHITE HOUSE PASSES THE COVETED IDENTIFICATION CARDS THAT ALLOW WEARERS TO ROAM THE WHITE HOUSE HALLS AND RECEIVE TOP SECRET BRIEFINGS AND DOCUMENTS HE NOTICED THAT MS THOMASSON STILL HAD ONLY A TEMPORARY PASS AND ASKED WHY SHE REPLIED THAT SHE WAS ABOUT TO GET A PERMANENT PASS BUT WHEN A WOLF AIDE CHECKED BACK NEAR THE END OF JANUARY SHE STILL HAD ONLY A TEMPORARY PASS MS THOMASSON SAID THAT HER PASS WAS READY AND SHE WOULD PICK IT UP ON JANUARY 31 THE NEXT MONDAY BUT ON FEBRUARY 4 MS THOMASSON AGAIN SAID HER PASS WAS SUPPOSED TO HAVE BEEN ISSUED TODAY BUT THAT SHE DIDN'T GET DOWN TO PICK IT UP WHEN REP WOLF'S AIDE CALLED AGAIN ON MARCH 2 MS THOMASSON DENIED SHE'D EVER SAID SHE HAD BEEN APPROVED FOR A PASS MS THOMASSON WHO DIDN'T RETURN A PHONE CALL MAY INDEED FINALLY HAVE RECEIVED A PERMANENT PASS LAST FRIDAY WHEN SUBPOENAS STARTED ARRIVING THIS WOULD BE AFTER 14 MONTHS VS THE FBI'S 45DAY TARGET FOR NEW EMPLOYEES REP WOLF'S EXTENSIVE CORRESPONDENCE HAS BEEN HIGHLY INSTRUCTIVE WHITE HOUSE CHIEF OF STAFF MACK MCLARTY REBUFFED HIS LETTERS ASKING FOR INFORMATION ON WHITE HOUSE SECURITY PROCEDURES AND THE PROLIFERATION OF TEMPORARY PASSES IN THE HANDS OF FOB HE WROTE THAT THE LIST OF PASS HOLDERS IS CONFIDENTIAL ONE LETTER ADDED THAT DURING THE REAGAN ADMINISTRATION THE OFFICE OF THE LEGAL COUNSEL OF THE DEPARTMENT OF JUSTICE OPINED THAT THE WHITE HOUSE HAS AUTHORITY TO ACCEPT THE SERVICES OF VOLUNTEERS AND THAT THESE PERSONS MAY BE PAID BY OUTSIDE SOURCES THE CONGRESSMAN'S REQUESTS FOR A COPY OF THIS OPINION WENT UNANSWERED WE HAVE SOME VAGUE RECOLLECTION OF A FLAPLET ABOUT THE FUNDING OF INAUGURAL BALLS MR WOLF DID DETERMINE HOWEVER THAT THE ULTIMATE DECISIONS ON WHITE HOUSE PASSES RESTS IN THE OFFICE OF THE WHITE HOUSE COUNSEL AND THAT IT IS BEING HANDLED THERE BY MR KENNEDY THE FORMER ROSE LAW FIRM PARTNER REPRIMANDED IN THE TRAVELGATE AFFAIR MR WOLF WROTE I WOULD LIKE TO TAKE THIS OPPORTUNITY TO EXPRESS MY OPINION THAT THIS IS NOT THE RIGHT MAN FOR THIS HIGHLY SENSITIVE POSITION SINCE MS THOMASSON IS AN OLD ARKANSAS FOB WE DOUBT THAT THE DELAY ON HER PASS WAS DUE TO MR KENNEDY WE SUSPECT THAT INSTEAD IT HAD SOMETHING OR OTHER TO DO WITH HER PAST ASSOCIATION WITH ANOTHER ARKANSAS FOB BOND TRADER AND DRUG CONVICT DAN LASATER SHE WORKED FOR MR LASATER WHEN HIS BUSINESS PROSPERED FROM HANDLING 664 MILLION IN ARKANSAS BOND CONTRACTS AND RAN HIS AFFAIRS FOR TWO YEARS AFTER HIS CONVICTION ON DRUG CHARGES REP WOLF DOESN'T THINK HIS QUESTIONS ON SECURITY PROCEDURES HAVE BEEN ANSWERED ESPECIALLY IN THE WAKE OF THE ALDRICH AMES CIA SPY SCANDAL HE SITS ON A HOUSE APPROPRIATIONS SUBCOMMITTEE WHERE MS THOMASSON IS SCHEDULED TO TESTIFY ON MARCH 22 WHEN THAT'S OVER WE EXPECT THAT WHO SHE IS WILL NOT BE MUCH OF A MYSTERY 9403100036 940310 MARKETING BRIEF NISSAN MOTOR CORP US UNIT TO SETTLE CHARGES BY FTC OF FALSE ADVERTISING NISSAN MOTOR CORP'S US UNIT AGREED TO SETTLE FEDERAL FALSEADVERTISING CHARGES STEMMING FROM ITS NISSAN CHALLENGE PROMOTIONAL CAMPAIGN IN THE CAMPAIGN THE COMPANY SAID IT WOULD PAY 100 TO ANYBODY WHO BUYS EITHER A TOYOTA CAMRY OR A HONDA ACCORD AFTER TESTDRIVING A NISSAN STANZA THE ADS SAID THERE'S NO CATCH TO THE OFFER BUT THE FEDERAL TRADE COMMISSION SAID THAT CONSUMERS HAD TO MEET SIGNIFICANT CONDITIONS TO QUALIFY FOR THE 100 PAYMENT THEY HAD TO PURCHASE THE ACCORD OR CAMRY TAKE DELIVERY OF IT AND SUBMIT PROOF OF THE PURCHASE TO NISSAN ALL WITHIN SEVEN DAYS OF THE TEST DRIVE THE FTC CHARGED IN ADDITION IT SAID THE OTHER CONDITIONS COULDN'T BE MET ON THE SAME DAY THE CONSUMER TOOK THE TESTDRIVE TO SETTLE THE CHARGES THE JAPANESE AUTOMAKER'S UNIT AGREED TO DISCLOSE RESTRICTIONS CLEARLY IN ITS ADS NISSAN BELIEVES THE PROMOTION AS RUN WAS FAIR ACCURATE AND COMPLIED WITH ALL LEGAL REQUIREMENTS NISSAN SAID IN A PREPARED STATEMENT 9403100035 940310 KELLOGG CONAGRA PLAN LINE OF BREAKFAST CEREALS BATTLE CREEK MICH KELLOGG CO IS TEAMING UP WITH CONAGRA INC TO PRODUCE A THREEVARIETY LINE OF BREAKFAST CEREALS UNDER THE HEALTHY CHOICE LABEL THE MULTIGRAIN PRODUCTS ARE SEEN AS A WAY FOR CONAGRA TO EXPAND THE REACH OF ITS HEALTHY CHOICE LINE OF FOODS AND FOR CEREALINDUSTRY LEADER KELLOGG TO REAP SOME OF THE HIGHER PROFIT MARGINS RIVAL GENERAL MILLS INC REALIZES ON ITS LINE OF TOTAL VITAMINFORTIFIED CEREALS THE VENTURE REPRESENTS THE FIRST LICENSING BY CONAGRA OF THE HEALTHY CHOICE NAME THE OMAHA NEBBASED COMPANY DISCONTINUED HEALTHY CHOICE BREAKFAST SANDWICHES AND MUFFINS BUT STILL SELLS A FROZEN EGG PRODUCT WALL STREET WAS INITIALLY UNCERTAIN ABOUT THE CONCEPT AS ANALYSTS PREDICTED SOME CANNIBALIZATION OF KELLOGG'S NUTRIGRAIN AND LOWFAT GRANOLA PRODUCTS BOTH AIMED AT THE SAME NUTRITIONCONSCIOUS CONSUMER THE HEALTHY CHOICE ITEMS PRESUMABLY WOULD APPEAL TO SHARES OF CONAGRA ROSE 75 CENTS ON THE NEWS TO 28 WHILE THOSE OF KELLOGG SLIPPED 1 TO CLOSE AT 4825 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SOME OF KELLOGG'S DECLINE WAS ATTRIBUTED TO A DAMPENING OF FIRSTQUARTER EARNINGS ESTIMATES BY KELLOGG'S CHAIRMAN 9403100034 940310 BUSINESS BRIEFS BANC ONE CORP SIGNED A LETTER OF INTENT TO BUY FIRST BANK COPPELL TEXAS THE PROPOSED ACQUISITION IS SUBJECT TO A FINAL AGREEMENT AS WELL AS APPROVAL BY REGULATORS AND FIRST BANK SHAREHOLDERS MOTOR WHEEL CORP RECEIVED A CONTRACT VALUED AT 3 MILLION A YEAR TO MANUFACTURE FRONT AND REAR BRAKE ROTORS FOR THE 1997 MODEL MERCEDESBENZ MULTIPURPOSE UTILITY VEHICLE XRITE INC WAS AWARDED TWO CONTRACTS TOTALING 42 MILLION TO SUPPLY COLORMATCHING INSTRUMENTS TO TWO UNIDENTIFIED NATIONAL RETAILERS GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED TWO ORDERS TOTALING NEARLY 180 MILLION TO SUPPLY SIX GAS TURBINEGENERATORS TO EXPAND SAUDI CONSOLIDATED ELECTRIC CO'S POWER PLANT IN RIYADH SAUDI ARABIA OMEGA ENVIRONMENTAL INC GOT CONTRACTS TOTALING AT LEAST 60 MILLION TO SERVICE UNDERGROUND STORAGE TANKS FOR THREE MAJOR CONVENIENCE STORE CHAINS IN SEVEN STATES 9403100032 940310 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 3 3/16 LOW 3 3/16 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 353 30 TO 44 DAYS 355 45 TO 59 DAYS 365 60 TO 89 DAYS 375 90 TO 119 DAYS 380 120 TO 149 DAYS 385 150 TO 179 DAYS 395 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 361 30 DAYS 374 60 DAYS 384 90 DAYS CERTIFICATES OF DEPOSIT 295 ONE MONTH 302 TWO MONTHS 317 THREE MONTHS 341 SIX MONTHS 367 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 354 ONE MONTH 375 THREE MONTHS 401 SIX MONTHS BANKERS ACCEPTANCES 349 30 DAYS 360 60 DAYS 370 90 DAYS 381 120 DAYS 387 150 DAYS 392 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/8 3 1/2 ONE MONTH 3 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 5/8 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 588 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 7 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 352 13 WEEKS 375 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 761 60 DAYS 767 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 755 60 DAYS 764 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 570 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 277 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403100031 940310 BUSINESS BRIEF NEW WORLD COMMUNICATIONS GROUP PACT WITH SCI TELEVISION CREATES HOLDING COMPANY NEW WORLD COMMUNICATIONS GROUP INC AND SCI TELEVISION INC SAID THEY COMPLETED A PREVIOUSLY REPORTED TRANSACTION UNDER WHICH NEW WORLD BECAME A HOLDING COMPANY FOR SCI TELEVISION THE TRANSACTION WAS REPORTED FEB 16 WHEN NEW WORLD COMMUNICATIONS WAS KNOWN AS SCI PARENT CORP SCI TELEVISION IS CONTROLLED BY INVESTOR RONALD PERELMAN THE COMPANIES ALSO SAID ANDREWS GROUP INC THE PERELMANCONTROLLED MAJORITY OWNER OF NEW WORLD COMMON SHARES SOLD TO NEW WORLD TWO OF ITS OWN UNITS NEW WORLD ENTERTAINMENT LTD AND FOUR STAR INTERNATIONAL INC IN EXCHANGE ANDREWS GROUP RECEIVED ABOUT 254 MILLION ADDITIONAL SHARES OF NEW WORLD CLASS B COMMON SHARES 9403100030 940310 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANDRX CORP AN INITIAL OFFERING OF 2750000 COMMON SHARES EXCLUDING 412500 SHARES TO COVER OVERALLOTMENTS VIA KIDDER PEABODY & CO BANK OF BOSTON CORP A SHELF OFFERING OF UP TO 15 BILLION OF SECURITIES CREDENCE SYSTEMS CORP AN OFFERING OF 25 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 375000 ADDITIONAL SHARES VIA SMITH BARNEY SHEARSON INC AND COWEN & CO FORE SYSTEMS INC AN INITIAL OFFERING OF 31 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO 9403100028 940310 POLITICS & POLICY PROBE OF MRS CLINTON'S STOCKHOLDINGS IS SOUGHT BY 81 GOP HOUSE MEMBERS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME 81 REPUBLICAN MEMBERS OF THE HOUSE ASKED THE OFFICE OF GOVERNMENT ETHICS TO INVESTIGATE HILLARY RODHAM CLINTON'S HOLDINGS IN AN INVESTMENT PARTNERSHIP THAT SOLD SHORT SEVERAL HEALTHCARE STOCKS EARLY LAST YEAR MRS CLINTON WIFE OF PRESIDENT CLINTON HAS BEEN A LIMITED PARTNER SINCE 1986 IN VALUEPARTNERS I A HEDGE FUND MANAGED BY SMITH CAPITAL MANAGEMENT OF LITTLE ROCK ARK AMONG OTHER INVESTORS IN PARTNERSHIPS SPONSORED OR MANAGED BY SMITH CAPITAL WAS JAMES MCDOUGAL FORMER CHAIRMAN OF THE FAILED MADISON GUARANTY SAVINGS & LOAN ASSOCIATION AND FORMER BUSINESS PARTNER OF THE CLINTONS IN WHITEWATER DEVELOPMENT CO THE REPUBLICANS' LETTER SAID A 1986 FINANCIAL STATEMENT FOR MR MCDOUGAL AND HIS WIFE SUSAN LISTS AMONG THEIR ASSETS WHITEWATER DEVELOPMENT AS WELL AS THREE SEPARATE INTERESTS IN UNSPECIFIED VALUE PARTNERSHIPS TOTALING 142060 THE STATEMENT WAS OBTAINED BY THE WALL STREET JOURNAL MRS CLINTON'S INVESTMENT HELD AT THE SAME TIME SHE HEADED THE PRESIDENTIAL TASK FORCE ON HEALTHCARE REFORM CONSTITUTES THE APPEARANCE OF IMPROPRIETY AND CONFLICT OF INTEREST SAID THE LETTER SIGNED BY LOUISIANA REP ROBERT LIVINGSTON AND 80 OTHER REPRESENTATIVES MRS CLINTON'S INTEREST IN THE HEDGE FUND WAS DISCLOSED LAST MAY IN FILINGS WITH THE ETHICS OFFICE AT THE TIME A WHITE HOUSE REPRESENTATIVE SAID THAT MRS CLINTON HAS NO INPUT COMMUNICATION REVIEW OVERSIGHT OR CONTROL OVER THE INVESTMENTS THAT THE FUND MAKES THE REPRESENTATIVE COULDN'T SAY FOR CERTAIN THAT MRS CLINTON WAS UNAWARE THAT HER MONEY WAS INVESTED IN MEDICALCOMPANY STOCKS REP LIVINGSTON AND HIS COSIGNERS CITED MR MCDOUGAL AND OTHER UNIDENTIFIED FRIENDS OF MRS CLINTON WHO WERE PARTICIPANTS IN SMITH CAPITAL INVESTMENTS AS PEOPLE WHO WERE IN A POSITION TO INFORM MRS CLINTON THAT VALUEPARTNERS I WAS SELLING SHORT HEALTHCARE STOCKS IN ADDITION THE LETTER SAID SMITH CAPITAL ISSUED AT LEAST SIX REPORTS TO INVESTORS IN ITS PARTNERSHIPS IN 1992 AND THE FIRST SIX MONTHS OF 1993 REPORTING ITS SHORT SALES OF HEALTHCARE AND PHARMACEUTICAL STOCKS HEDGE FUNDS SUCH AS VALUEPARTNERS I ARE AGGRESSIVE INVESTMENT POOLS THAT CAN BUY STOCKS WITH BORROWED MONEY AND CAN SELL STOCKS SHORT THAT IS BORROW SHARES AND SELL THEM AT CURRENT PRICES IN ANTICIPATION OF REPLACING THEM AT LOWER PRICES AT THE TIME THAT MS RODHAM CLINTON'S ACTIONS CAUSED THE DROP IN THE PRICES OF THESE STOCKS HER PERSONAL INVESTMENT IN VALUEPARTNERS I OF WHICH SHE HAD REPEATED NOTICE WAS INTENTIONALLY STRUCTURED TO PROFIT FROM PRICE DECLINES IN PHARMACEUTICAL COMPANY STOCKS THE LETTER SAID THE FUND AND OTHER OF THE CLINTONS' HOLDINGS WERE PLACED IN A BLIND TRUST LAST JULY REP LIVINGSTON AND HIS COLLEAGUES PREVIOUSLY ASKED THE SECURITIES AND EXCHANGE COMMISSION WHETHER IT WAS INVESTIGATING THE SHORT SALES OF VALUEPARTNERS I THE COMMISSION AS IS ITS POLICY RESPONDED THAT IT COULD NEITHER CONFIRM NOR DENY THE EXISTENCE OF AN INVESTIGATION 9403100027 940310 BUSINESS BRIEF FIRST EXECUTIVE CORP REHABILITATION PLAN DRAWS EXECUTIVE LIFE POLICYHOLDERS CALIFORNIA STATE INSURANCE REGULATORS SAID THAT 92 OF EXECUTIVE LIFE INSURANCE CO'S 337357 POLICYHOLDERS CHOSE TO PARTICIPATE IN A COURTAPPROVED REHABILITION PLAN FOR THE COMPANY UNDER AURORA NATIONAL LIFE ASSURANCE CO AURORA ESTABLISHED TO ASSUME RESPONSIBILITY FOR EXECUTIVE LIFE'S POLICIES AND ANNUITY CONTRACTS IS TWOTHIRDS OWNED BY A GROUP HEADED BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE AND ONETHIRD BY SUNAMERICA INC STATE REGULATORS SEIZED EXECUTIVE LIFE A UNIT OF FIRST EXECUTIVE CORP IN 1991 AND ENGINEERED A BAILOUT PLAN THAT WAS COMPLETED IN SEPTEMBER INSURANCE COMMISSIONER JOHN GARAMENDI CALLED THE RESULT A TREMENDOUS VOTE OF CONFIDENCE IN OUR REHABILITATION PLAN AND ALSO IN AURORA 9403100026 940310 BUSINESS BRIEF BOX ENERGY CORP FEDERAL COURT SETS JUDGMENT AGAINST FOUNDER'S ESTATE A FEDERAL DISTRICT COURT JUDGE IN DALLAS ENTERED A JUDGMENT TOTALING ABOUT 223 MILLION IN DAMAGES AND INTEREST AGAINST THE ESTATE OF BOX ENERGY CORP FOUNDER CLOYCE K BOX ON BEHALF OF THE COMPANY THE JUDGMENT FOLLOWS A JURY VERDICT IN OCTOBER 1992 IN A SUIT THAT MADE SEVERAL CLAIMS INCLUDING MISMANAGEMENT AGAINST MR BOX WHO DIED IN OCTOBER MR BOX'S ESTATE HOLDS 57 OF THE VOTING RIGHTS OF BOX ENERGY AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY BASED IN DALLAS THE EXECUTORS OF THE ESTATE ARE TWO OF MR BOX'S SONS THOMAS D BOX COMPANY PRESIDENT AND DON D BOX COMPANY CHAIRMAN THE COMPANY SAID IT IS REVIEWING THE JUDGMENT AND HASN'T DECIDED WHETHER TO APPEAL 9403100025 940310 LEISURE & ARTS FILM FUNNY MONEY POOR BRIT FIRST LADY'S GUARD BY JULIE SALAMON THE COEN BROTHERS WHO STARTED OUT AS FILM PRODIGIES FROM MINNEAPOLIS SEEM TO BE STUCK IN PRODIGY LIMBO THEIR LATEST PICTURE THE HUDSUCKER PROXY SEEMS LESS A MOVIE THAN THE GRADUATE THESIS OF A VERY SMART AND VERY RICH FILM STUDENT TEN YEARS AGO THE COENS MADE THEIR DEBUT WITH BLOOD SIMPLE WHICH MADE THEM THE DARLINGS OF THE INDEPENDENT FILM CIRCUIT A CHEERFUL SENDUP OF HORROR MOVIES IT HAD A CHEEKY VISUAL STYLE AND DEADPAN WIT VANITY FAIR MAGAZINE THEN THE ARBITER OF HIGH HIP PRONOUNCED THE MOVIE A HOLLYWOOD MOVIE BETTER THAN HOLLYWOOD MAKES THEM IT WAS A JOKEY PICTURE PUT TOGETHER BY A COUPLE OF SMART GUYS JOEL DIRECTING ETHAN PRODUCING BOTH OF THEM WRITING WHO CLEARLY APPRECIATED THE MECHANICS OF MOVIEMAKING OVER THE YEARS THEIR MOVIES HAVE BEEN LONG ON STYLE SHORT ON CHARACTERIZATION A LOT OF AMAZINGLOOKING STUFF GOES ON BUT MORE OFTEN THAN NOT YOU DON'T CARE MUCH ABOUT IT THEY WORK BEST WHEN THEY KEEP UP THE PACE AND WIT OF A LOONEY TUNES CARTOON AS THEY DID IN 1987 WITH RAISING ARIZONA WHEN THE BROTHERS GOT SERIOUS IN MILLER'S CROSSING THEIR 1990 HOMAGE TO GANGSTER MOVIES THE STORY GOT LOST IN A SERIES OF DARKLY POETIC IMAGES WHOSE SIGNIFICANCE WAS OBLIQUE THEIR DARK PERIOD CONTINUED IN 1991 WITH BARTON FINK A MORBIDLY FASCINATING MOVIE ABOUT WRITER'S BLOCK THAT APPEALED NOT SURPRISINGLY MAINLY TO WRITERS WITH THE HUDSUCKER PROXY THE COENS SEEM TO WANT TO HAVE FUN AGAIN THIS FILM WHICH THEY DESCRIBE AS A SATIRE OF AMERICAN BUSINESS IS ALL EXAGGERATIONS LIKE A RAMBUNCTIOUS CARTOON IT'S FULL OF RUBE GOLDBERG MACHINATIONS AND FABULOUS SETS THIS IS A DESIGNER'S MOVIE ITS MAKEBELIEVE NEW YORK BUILDINGS WERE BUILT AS MINIATURES THEN FILMED TO LOOK GIGANTIC AND GIVEN MATCHING OVERSIZE INTERIORS EVEN THE FURNITURE LOOKS GARGANTUAN INDEED THE ONE PERSON WHO CAN WALK AWAY FROM IT AND FEEL HE'S ACCOMPLISHED SOMETHING WORTHWHILE IS PRODUCTION DESIGNER DENNIS GASSNER MAYBE THE COENS WERE INFLUENCED BY THEIR NEW PRODUCER JOEL SILVER A SPECIALIST IN SELFPARODY HE'S THE BACKER OF THE DIE HARD AND THE LETHAL WEAPON PICTURES AS WELL AS PREDATOR AND COMMANDO TOGETHER THEY HAVE PRODUCED IN THE HUDSUCKER PROXY THE WORST OF BOTH WORLDS THE SELFCONSCIOUS HIPNESS OF INDEPENDENT FILMMAKING AND UNSELFCONSCIOUS EXCESS OF HOLLYWOOD THE MOVIE IS ABOUT A RUBE TIM ROBBINS AT THE CENTER OF A STOCK MANIPULATION SCHEME HE IS PLUCKED OUT OF THE MAIL ROOM BY A NEFARIOUS CORPORATE CLIMBER PAUL NEWMAN TO RUN THE COMPANY WHEN ITS PRESIDENT COMMITS SUICIDE A TOUGH GIRL REPORTER JENNIFER JASON LEIGH IS TRYING TO UNMASK HIM INSTEAD HE INVENTS THE HULAHOOP SHE FALLS IN LOVE WITH HIM AND THE BAD GUYS ARE PUNISHED THE COENS MAKE MANY REFERENCES TO FILMMAKERS PAST TO HAWKES CAPRA AND STURGES BUT THESE FAILED HOMAGES ONLY REMIND YOU WHAT THE HUDSUCKER PROXY ISN'T DON'T BOTHER TO SEE THIS FILM UNLESS YOU EXPECT TO BE TESTED IN FILM CLASS ABOUT THE COENS' SERIAL DISSERTATION ON AMERICAN CINEMA WHEN I HEARD THE SUBJECT OF RAINING STONES I THOUGHT OH NO ANOTHER MOVIE ABOUT BRITS ON THE DOLE MY SPIRITS WEREN'T LIFTED BY THE ADDITIONAL INFORMATION THAT IT'S ABOUT A MAN'S STRUGGLE TO BUY A NEW COMMUNION DRESS FOR HIS LITTLE GIRL EXPERIENCE LED ME TO EXPECT EITHER ONE OF THOSE BRITISH FARCES WHERE PIGS RELIEVE THEMSELVES IN THE LIVING ROOM OR SOME BLEAK HARANGUE FROM AMATEUR ACTORS WITH BAD TEETH ABOUT HOW NASTY LIFE IS BUT THERE ARE NO PIGS IN RAINING STONES JUST A SHEEP WHO IS KILLED MERCIFULLY OFFSCREEN BY A BUTCHER THE SHEEP DOES START THE MOVIE HOWEVER IT'S BEEN STOLEN BY THE HERO BOB WILLIAMS BRUCE JONES ONE OF HIS MANY SCHEMES FOR MAKING MONEY BOB AS IT TURNS OUT IS A VERY APPEALING HERO IN A VERY APPEALING MOVIE ONCE YOU GET USED TO THE THICK ACCENTS OF NORTH ENGLAND HE WORKS WHENEVER HE CAN FIND A JOB WHICH ISN'T OFTEN ENOUGH THE MOVIE CATCHES HIM IN A PERIOD WHEN HE NEEDS MONEY BADLY FOR THAT COMMUNION DRESS SCREENWRITER JIM ALLEN AND DIRECTOR KEN LOACH DO A WONDERFUL JOB OF PRESENTING BOB'S SITUATION AS AN UNEMPLOYED WORKINGCLASS MAN RAINING STONES UNFOLDS WITH POIGNANCY AND HUMOR AND INSIGHT USING A DOCUMENTARY STYLE THE FILMMAKERS EVOKE A WAY OF LIFE WHERE THE MAIN FIGHT ISN'T SO MUCH FOR FOOD THE GOVERNMENT PAYS FOR THAT BUT AGAINST THE LOSS OF SPIRIT BOB HAS TO BUY THE COMMUNION DRESS HE CAN'T AFFORD NOT TO CURRY FAVOR WITH THE CHURCH THE PRIEST URGES HIM NOT TO DO IT BUT SO HE CAN FEEL ALIVE IN THE MATTER OF GUARDING TESS IT WOULD BE KINDER TO SAY NOTHING AT ALL HOWEVER IT MUST BE REVEALED THAT THIS MOVIE ABOUT A SECRET SERVICE AGENT ASSIGNED TO WATCH A FORMER FIRST LADY IS ONLY FOR THOSE WHO FEEL COMPELLED TO BE CURRENT ON THE COMPLETE FILMOGRAPHY OF BOTH SHIRLEY MACLAINE AND NICOLAS CAGE NO MATTER HOW LOW THEY SINK VIDEO TIP WOULDN'T IT BE MORE FUN TO RENT THE APARTMENT AND SEE WHAT COULD HAPPEN WHEN YOU PUT SHIRLEY MACLAINE AND JACK LEMMON TOGETHER WITH DIRECTOR BILLY WILDER AT THE TOP OF HIS GAME IN 1960 9403100024 940310 WHO'S NEWS CLINTON PICKS ROMERO FOR AVIATION AFFAIRS WASHINGTON PRESIDENT CLINTON CHOSE A TELECOMMUNICATIONS LAWYER RAYMOND G ROMERO TO BE ASSISTANT TRANSPORTATION SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS MR ROMERO 40 YEARS OLD IS VICE PRESIDENT AND GENERAL COUNSEL FOR THE INTERNATIONAL ARM OF AMERITECH A CHICAGOBASED REGIONAL TELEPHONE COMPANY HE HAS NO AVIATION EXPERIENCE BUT A TRANSPORTATION DEPARTMENT SPOKESWOMAN SAID HE HAS HAD EXTENSIVE EXPERIENCE WITH INTERNATIONAL NEGOTIATIONS MR ROMERO'S PRIMARY RESPONSIBILITY WILL BE OVERSEEING AVIATION AGREEMENTS WITH OTHER COUNTRIES AIRLINES HAVE CRITICIZED THE CLINTON ADMINISTRATION FOR FAILING TO FILL THE POST SOONER THE US HAS BEEN INVOLVED IN SENSITIVE LANDINGRIGHTS NEGOTIATIONS WITH GREAT BRITAIN GERMANY AND OTHER COUNTRIES THE ADMINISTRATION HAD TROUBLE FINDING A CANDIDATE WHO HADN'T WORKED FOR ONE OF THE AIRLINES AND THUS WOULD BE DISQUALIFIED FROM WORKING ON MANY ISSUES 9403100023 940310 MARKETING & MEDIA CAPITAL CITIES/ABC INC ABC SPORTS UNIT TO DISCLOSE TV PACT FOR COLLEGE FOOTBALL ABC SPORTS WILL ANNOUNCE TODAY A FIVEYEAR CONTRACT TO TELEVISE THE BIG EIGHT CONFERENCE'S COLLEGE FOOTBALL GAMES THE DEAL RUNNING FROM 1996 TO 2000 AND VALUED AT CLOSE TO 60 MILLION CULMINATES A SERIES OF TRANSACTIONS IN WHICH ABC AND CBS INC BOTH BASED IN NEW YORK HAVE SNAPPED UP FOOTBALL TV RIGHTS FROM THE MAJOR ATHLETIC CONFERENCES THE BIG EIGHT INCLUDES SUCH PERENNIAL FOOTBALL POWERS AS THE UNIVERSITY OF NEBRASKA AND THE UNIVERSITY OF OKLAHOMA THE CONFERENCE RECENTLY ADDED FOUR FORMER SOUTHWEST CONFERENCE SCHOOLS IN TEXAS EXPANDING ITS GEOGRAPHIC BASE AND TV DESIRABILITY THIS IS A TERRIFIC COMPLEMENT TO WHAT WE ALREADY HAD SAID A SPOKESMAN FOR ABC A CAPITAL CITIES/ABC INC UNIT LIBERTY SPORTS A UNIT OF LIBERTY MEDIA CORP WILL GET THE CABLETV PORTION OF THE BIG EIGHT PACKAGE FOR AN ESTIMATED 40 MILLION 9403100022 940310 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE PROBLEM WITH THE GEEWHIZ APPROACH TO NEW HIGHTECH PRODUCTS FREQUENTLY FAVORED BY WALL STREET ANALYSTS AND SOME PARTS OF THE PRESS IS THAT IT IS DRIVEN MAINLY BY THE GLAMOUR OF THE NEW TECHNOLOGIES THEMSELVES THESE BREATHLESSLY POSITIVE REACTIONS TOO OFTEN UNDERVALUE THE MORE MUNDANE ISSUES OF WHETHER AND WHEN THE NEW TECHNOLOGIES WILL ACTUALLY MAKE A DIFFERENCE FOR CONSUMERS PROVIDING BENEFITS PREVIOUSLY UNAVAILABLE AND AT WHAT COST YET IN THE END THOSE ARE THE ONLY QUESTIONS THAT MATTER THAT'S THE FLAW IN MUCH OF THE ADVANCE BILLING FOR THE 3DO GAMEMACHINE SYSTEM THE MOST HEAVILY TOUTED NEW GIZMO FOR HOMES MANY OF THE GLOWING FORECASTS CAME FROM WELLMEANING FOLKS WHO HADN'T TRIED A 3DO PLAYER IN A REAL HOME SETTING AS I HAVE LATELY AFTER A COUPLE OF WEEKS OF USING A 3DO MACHINE I TOO AM WILLING TO ADMIT THE THING HAS POTENTIAL FOR GREATNESS BUT I WOULDN'T ADVISE ANYONE EXCEPT WELLHEELED TECHNOLOGY FREAKS OR ADULT GAME ADDICTS TO RUN OUT AND BUY ONE ANY TIME SOON DESPITE A RECENT WELCOME 200 PRICE CUT TO MY MIND THE BENEFITS 3DO DELIVERS TO FAMILIES TODAY ARE SCANT ESPECIALLY CONSIDERING ITS STILLHEFTY 500 COST THERE'S NO PROBLEM WITH THE HARDWARE WHICH IS BASED ON TECHNOLOGY DEVELOPED BY 3DO OF REDWOOD CITY CALIF AND INCORPORATED SO FAR IN ONLY ONE PLAYER PANASONIC'S REAL MODEL IN OUR REC ROOM THE 3DO SHOWED ITSELF CAPABLE OF HIGHERQUALITY HIGHERSPEED ANIMATION AND VIDEO THAN GAME MACHINES FROM SEGA AND NINTENDO AND MOST STANDARD PCS MY GAMESAVVY BOYS AGES 12 AND 15 RATED IT TECHNICALLY FAR ABOVE THE SEGA GENESIS AND THE MACINTOSH AND IBMCOMPATIBLE PCS ON WHICH THEY'VE PLAYED BUT AS WITH COMPUTERS IT'S THE SOFTWARE THAT'S KEY IF IT'S WEAK PREDICTABLE OR UNSUITABLE FOR FAMILY USE IN THE EYES OF THE PARENTS WHO PAY FOR IT SO IS THE GAME SYSTEM THAT PLAYS IT AND SO FAR TO THE EYES OF THIS FATHER MANY OF THE HANDFUL OF SOFTWARE PROGRAMS AVAILABLE FOR 3DO AND EVEN MANY OF THE NEW TITLES WE TRIED OUT IN PRERELEASE VERSIONS DON'T MOVE THE BALL WITH ONE IMPRESSIVE EXCEPTION WHAT I SAW WERE MERELY VISUALLY JUICEDUP VARIATIONS OF THE SAME TIRED AND OFTENVIOLENT GENRES NOW PLAYABLE ON MUCH CHEAPER GAME MACHINES OR COPIES OF WHAT'S AVAILABLE ON THE MULTIMEDIA PERSONAL COMPUTERS PARENTS ARE RUSHING TO BUY PRECISELY SO THEY CAN PRY THEIR KIDS AWAY FROM GAME MACHINES AND BAD TV SHOWS THE GOAL OF 3DO IS TO DELIVER MUCH BETTER AND MORE INTERESTING ENTERTAINMENT AND EDUCATION PROGRAMMING THAN EXISTS ON GAME MACHINES AND AT A LOWER COST THAN THAT OF A PERSONAL COMPUTER THE MACHINE USES CDTYPE DISKS NOT CARTRIDGES AND CAN PLAY NOT ONLY GAMES BUT MUSIC CDS KODAK PHOTO CDS AND LATER THIS YEAR MOVIES ON CDS WITH A 200 ATTACHMENT IT HAS A WELLDESIGNED HAND CONTROLLER THAT EVEN PERMITS THE USE OF HEADPHONES AND THE PLAYER CAN ACCEPT ADDON DEVICES INCLUDING A KEYBOARD AS THEY BECOME AVAILABLE UNFORTUNATELY THE ONE GAME SHIPPED WITH THE PANASONIC PLAYER CRASH 'N BURN BY CRYSTAL DYNAMICS ISN'T AN ENCOURAGING SIGN FOR 3DO IT'S A ROAD RACE WITH ARMED CARS THAT ATTACK EACH OTHER THOUGH VISUALLY IMPRESSIVE IT FEATURES A TIRED VIOLENT THEME NEARLY AS OLD AS THE PC IT'S THE SAME WITH ANOTHER HIGHLY PRAISED 3DO TITLE FROM THE SAME PUBLISHER CALLED TOTAL ECLIPSE THIS IS THE OLD SPACESHIP SHOOT'EMUP THEME WITH BETTER SCENERY ANOTHER CRYSTAL DYNAMICS TITLE THE HORDE SHOWS PROMISE BECAUSE IT USES SOME VIDEO CLIPS WITH REAL ACTORS AND LETS YOU BUILD VILLAGES BUT IN THE END IT'S REALLY ABOUT KILLING AND WOUNDING AGAIN THIS TIME INVOLVING BLOBLIKE CREATURES WHO PILLAGE THE TOWNS JOHN MADDEN FOOTBALL FROM ELECTRONIC ARTS HAS VIDEOS OF THE COLORFUL SPORTSCASTER BUT OTHERWISE SEEMS A LOT LIKE OTHER FOOTBALL SIMULATORS ON OTHER MACHINES MUCH WORSE IS THE 3DO VERSION OF THE NOTORIOUS GAME NIGHT TRAP FROM DIGITAL PICTURES IN IT A BUNCH OF LOVELY TEENAGE GIRLS ARE STALKED BY MASKED MEN WITH GRAPPLING HOOKS IN A SPOOKY HOUSE THIS VIOLENT SEXIST THEME IS MADE MORE NOXIOUS BY THE 3DO'S MOREREALISTIC VIDEO AND SOUND BUT WE DID SEE ONE TERRIFIC 3DO TITLE TWISTED BY ELECTRONIC ARTS THAT SHOWED HOW THE MACHINE'S TECHNOLOGY MIGHT BE USED TO PROVIDE GREAT INTERACTIVE FAMILY ENTERTAINMENT BEYOND WHAT I'VE SEEN ON GAME MACHINES AND PCS DESPITE ITS DEVIANTSOUNDING NAME TWISTED IS A FASTPACED PARODY OF A TV GAME SHOW IN WHICH MULTIPLE PLAYERS CAN COMPETE BY SOLVING A VARIETY OF PUZZLES AND CHALLENGES IT'S PACKED WITH GREAT VIDEO AND AUDIO INCLUDING AN UNCTUOUS HOST AND FUNNY CONTESTANTS PLAYED BY ACTORS WHO ARE CONTROLLED BY THE PLAYERS THERE'S INVENTIVE CONTENT AND LOTS OF HUMOR THOUGH I ALWAYS LOSE MISERABLY TO MY OFFSPRING THERE ARE A NUMBER OF OTHER GOOD TITLES OUT OR PLANNED FOR THE SYSTEM THOUGH UNLIKE TWISTED THEY'RE NOT UNIQUELY BASED ON 3DO TECHNOLOGY AND ARE ALREADY AVAILABLE FOR PERSONAL COMPUTERS AND THE 3DO COMPANY IS BELIEVED TO BE CONSIDERING DEVELOPING ITS OWN SOFTWARE OFFERINGS TO BETTER SHOW OFF THE TECHNOLOGY IT'S ALSO NEGOTIATING WITH MORE COMPANIES TO BUILD THE MACHINES AT LOWER PRICES AND WORKING ON MAKING 3DO TECHNOLOGIES AVAILABLE ON PERSONAL COMPUTERS THROUGH AN ADDIN CIRCUIT BOARD IF 3DO TECHNOLOGY BECOMES A PATH FOR BRINGING UNIQUE AND VALUABLE CONTENT INTO THE HOME IT'LL MAKE SENSE FOR MANY FAMILIES TO OWN ONE BUT UNTIL THEN WAIT 9403100021 940310 CREDIT MARKETS GE CAPITAL RESPONDING TO INVESTOR CONCERNS OFFERS COMPROMISE AFTER CANCELING REDEMPTION BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A SURPRISINGLY QUICK CONCESSION TO FURIOUS INVESTORS GE CAPITAL CORP ANNOUNCED A TENDER OFFER LATE YESTERDAY FOR A 500 MILLION ISSUE OF 30YEAR FLOATINGRATE BONDS THE DECISION BY THE FIRM THE FINANCIALSERVICES ARM OF GENERAL ELECTRIC CORP AND ONE OF THE NATION'S LARGEST ISSUERS OF CORPORATE DEBT IS THE LATEST DEVELOPMENT FOLLOWING A REVERSAL THAT INFURIATED SOME INVESTORS IN THE COMPANY'S DEBT THE TENDER OFFER IS A COMPROMISE THAT WILL ALLOW THOSE INVESTORS WHO WERE ANGERED BY THE GE CAPITAL MOVES TO RECOVER THEIR INVESTMENTS WITH LITTLE CHANCE OF LOSSES AS WAS REPORTED IN LATE EDITIONS OF YESTERDAY'S WALL STREET JOURNAL THE COMPANY TOLD INVESTORS ON JAN 26 THAT IT WOULD REDEEM THE NOTES AT FACE VALUE ON MARCH 15 BUT ON FEB 15 JUST 11 DAYS AFTER THE FEDERAL RESERVE STARTED TO BOOST SHORTTERM INTEREST RATES THE COMPANY ANNOUNCED THAT IT WOULDN'T REDEEM THE BONDS AFTER ALL THE COMPANY'S DECISION NOT TO PROCEED WITH A PREVIOUSLY ANNOUNCED REDEMPTION WAS HIGHLY UNUSUAL SOME BONDHOLDERS ARGUED THAT GE CAPITAL WOULD BE SETTING A DANGEROUS PRECEDENT THAT WOULD ALLOW OTHER FIRMS TO USE REDEMPTION ANNOUNCEMENTS AS A TYPE OF OPTION ON FUTURE INTEREST RATES AN ISSUER COULD ANNOUNCE A REDEMPTION THEN SIT BACK AND WATCH BONDMARKET TRENDS IF INTEREST RATES DIDN'T GO ITS WAY A COMPANY COULD THEN DECIDE NOT TO REDEEM AS WITH MANY BONDS THE INDENTURE FOR THE GE CAPITAL ISSUE REQUIRES THE COMPANY TO ANNOUNCE AT LEAST 60 DAYS IN ADVANCE ANY DECISION NOT TO REDEEM EVERY THREE YEARS IN MARCH GE CAPITAL HAS THE OPTION OF EITHER BUYING THE BONDS BACK FROM INVESTORS OR RESETTING THEIR COUPONS AT A RATE EQUAL TO 108 OF THE RATE ON THREEYEAR US TREASURY NOTES THIS WOULD MEAN THAT THE COUPON WOULD DROP FROM ITS CURRENT 8 ACCORDING TO ONE INVESTOR TO SOMETHING AROUND 56 GE CAPITAL WENT SO FAR AS TO PLACE AN ADVERTISEMENT IN YESTERDAY'S EDITIONS OF THE WALL STREET JOURNAL TO FORMALLY GIVE NOTICE TO BONDHOLDERS OF THE DECISION TO RESET THE COUPON ON THE BONDS IN A STATEMENT RELEASED BY THE COMPANY LATE YESTERDAY JEFFREY S WERNER SENIOR VICE PRESIDENT IN GE CAPITAL'S CORPORATE TREASURYS AND GLOBAL FUNDING OPERATIONS SAID THAT IN RECENT DISCUSSIONS SOME HOLDERS OF THE RESET NOTES EXPRESSED DISSATISFACTION WITH OUR DECISION TO RESCIND THE ORIGINAL REDEMPTION THIS TENDER OFFER IS DESIGNED TO ACCOMMODATE THOSE HOLDERS WHILE ALLOWING THOSE INVESTORS WHO ARE LONGTERM HOLDERS OF THE RESET NOTES TO MAINTAIN THEIR INVESTMENT POSITIONS COMPANY OFFICIALS WEREN'T AVAILABLE FOR COMMENT LATE YESTERDAY MEANWHILE THE PRICES OF US TREASURYS ROSE MODESTLY YESTERDAY WITH THE 30YEAR TREASURY BOND UP MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH 1000 FACE VALUE TO 92 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 683 FROM 687 ON TUESDAY THE PRICES OF OTHER TREASURY SECURITIES POSTED SMALLER GAINS WITH ALL THE WEAKNESS IN WORLD BOND MARKETS THESE DAYS INVESTORS ARE EVEN MORE SENSITIVE THAN USUAL ABOUT TAKING LOSSES ESPECIALLY ON SECURITIES ISSUED BY GE CAPITAL A CORPORATION WITH MORE THAN 62 BILLION IN DEBT OUSTANDING AS IS COMMON AFTER A REDEMPTION ANNOUNCEMENT SOME INVESTORS BEGAN TO BUY AND SELL THE COMPANY'S 30YEAR SECURITIES AS IF THEY WERE HIGHYIELDING 60DAY NOTES DANIEL NAGY A BOND DEALER AT DRAKE CAPITAL SECURITIES IN LOS ANGELES WHO OWNS MORE THAN 50 MILLION OF THE NOTES SAID THAT A NUMBER OF MONEYMARKET FUNDS PURCHASED THE GE CAPITAL SECURITIES SOON AFTER THE ORIGINAL REDEMPTION ANNOUNCEMENT IN LATE JANUARY BUT WHEN THE REDEMPTION NOTICE WAS RESCINDED ON FEB 15 SOME FUNDS FELT COMPELLED TO SELL THE BONDS SINCE THEY WOULD BE TREATED AS LONGTERM DEBT AGAIN SOMETHING MONEYMARKET FUNDS AREN'T PERMITTED TO HOLD THE RESULT IS A BIG HIT TO PRINCIPLE SINCE THE REDEMPTION WAS RESCINDED THE PRICE OF THE BONDS HAS DROPPED TWO POINTS TO 98 ACCORDING TO MR NAGY AND OTHER INVESTORS OR 20 FOR A BOND WITH 1000 FACE VALUE ON TUESDAY AN OFFICIAL AT GE CAPITAL DESCRIBED THE ORIGINAL DECISION TO REDEEM AS AN ERROR HOWEVER MR NAGY AT THE TIME POINTED OUT THAT THE FIRM DID NOT ANNOUNCE THAT THIS WAS A MISTAKE THE SAME DAY OR THE NEXT DAY OR EVEN THAT WEEK THEY LEFT IT OUT THERE AND PEOPLE BOUGHT AND SOLD THESE NOTES ASSUMING THEY WOULD BE REDEEMED HE SAID ANOTHER LARGE INVESTOR IN THE BONDS SAID THAT THE GE CAPITAL DECISION NOT TO GO THROUGH WITH THE REDEMPTION SET A BAD PRECEDENT WHICH ALL FIXEDINCOME INVESTORS SHOULD BE CONCERNED ABOUT THE GE CAPITAL TENDER OFFER ANNOUNCED YESTERDAY IS A REMEDY TO THE DILEMMA OF SHORTTERM INVESTORS IT ALLOWS THEM TO SELL THE BONDS BACK TO GE CAPITAL AT FACE VALUE PLUS ACCRUED INTEREST AS IF THE ORIGINAL REDEMPTION HADN'T BEEN RESCINDED THE TENDER OFFER ALSO ALLOWS INVESTORS WHO BOUGHT THE BONDS AFTER THE REDEMPTION WAS RESCINDED OR THOSE WHO HELD THE BONDS THROUGHOUT THE CONFUSION TO CONTINUE HOLDING THOSE BONDS UNDER THE ORIGINAL TERMS OF THE INDENTURE AS IF THE REDEMPTION HAD BEEN CANCELED THIS LOOKS GOOD TO ME SAID MR NAGY THIS IS THE COMPROMISE WE WERE LOOKING FOR SOOTHED BY NEWS FROM THE FED SUGGESTING THAT INFLATION PRESSURES AREN'T AS WIDESPREAD AS SOME HAD FEARED PRICES OF US TREASURY SECURITIES PUSHED MODERATELY HIGHER MARKET PARTICIPANTS WERE QUICK TO ADD HOWEVER THAT EVEN THOUGH SIGNS OF STABILITY HAVE BEGUN TO EMERGE IN THE BATTERED BOND MARKET SENTIMENT REMAINS BEARISH AND BUYERS ARE EXTREMELY CAUTIOUS THE 10YEAR NOTE ROSE MORE THAN 1/4 POINT TO 96 13/32 TO YIELD 635 COMPARED WITH 639 ON TUESDAY YESTERDAY'S GAINS ONLY PARTIALLY ERASED LOSSES POSTED TUESDAY BUT TRADERS SAID IT APPEARED THAT THE MARKET IS TRYING TO ESTABLISH A BOTTOM AFTER WEEKS OF BIG DECLINES THE MARKET HAS MOVED A GOOD BIT LOWER AND WE'RE AT LEVELS WHERE JUST A SHORT TIME AGO YOU WOULD HAVE VIEWED IT AS ATTRACTIVE SAID MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES INC SO IT'S NATURAL THAT THE MARKET WOULD PAUSE PAUL MCCORMACK MANAGER OF GOVERNMENTSECURITIES TRADING AT CHASE SECURITIES INC AGREED PEOPLE ARE WILLING TO DO A LITTLE BIT OF BOTTOM FISHING BUYERS WERE ENCOURAGED BY THE FED'S BEIGE BOOK WHICH CONTAINS ANECDOTAL REPORTS OF ECONOMIC ACTIVITY COLLECTED BY THE REGIONAL FED BANKS THE BEIGE BOOK REPORTED ONLY LIMITED PRICE PRESSURES AS THE ECONOMY EXPANDED MODERATELY OVER THE FIRST TWO MONTHS OF THE YEAR TRADERS HAD WORRIED THAT THE REPORT WOULD DEPICT INFLATION PRESSURES AS SPREADING THE INFLATION ASPECT OF THE REPORT WAS REASSURING SAID DOUG SCHINDEWOLF MONEYMARKET ECONOMIST AT SMITH BARNEY SHEARSON INC BUT ANALYSTS NOTED THAT THE REPORT WASN'T ALL GOOD NEWS FOR THE BOND MARKET IT INDICATED THAT DESPITE THE WEATHER DISRUPTIONS IN THE OPENING MONTHS OF THE YEAR THE UNDERLYING MOMENTUM OF THE ECONOMY IS STILL PRETTY GOOD MR SCHINDEWOLF SAID THAT MEANS THE FED IS STILL LIKELY TO RAISE INTEREST RATES SHORTLY ANALYSTS SAID THEY ARE ON A PATH OF PERSISTENT TIGHTENING AND WE'LL PROBABLY SEE ANOTHER MOVE IN THE NOTTOODISTANT FUTURE SAID MR MORAN OF DAIWA IN THE MEANTIME THE TONE IN THE MARKET IS CLEARLY STILL NEGATIVE SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO IN ORDER FOR THE MARKET TO RALLY FROM THESE LEVELS IT HAS TO BE CONVINCED THAT INFLATION IS NOT A PROBLEM NOW AND THAT IT IS NOT GOING TO BE A PROBLEM DOWN THE ROAD THE CORPORATEBOND MARKET CONTINUED PICKING UP STEAM YESTERDAY AS THE BANK OF CHINA AND MCI COMMUNICATIONS CORP BOTH COMPLETED DEBT OFFERINGS THAT HAD BEEN DELAYED BY MARKET CONDITIONS MORE THAN 27 BILLION OF BONDS WERE PRICED DURING THE SESSION BANK OF CHINA SOLD 500 MILLION OF YANKEE BONDS THROUGH LEAD MANAGER MORGAN STANLEY & CO THE TWOPART OFFERING MARKS THE FIRST YANKEE DEAL FOR THE BANK YANKEE BONDS ARE SECURITIES SOLD IN THE US BY FOREIGN ENTITIES MEANWHILE MCI SURPRISED THE MARKET WITH A 950 MILLION THREEPART DEBT OFFERING SYNDICATE OFFICIALS SAID THEY WERE HAPPY TO SEE THE SUCCESSFUL EXECUTION OF THE LARGE TRANSACTION AFTER A WEEK OF VOLATILE TRADING DEALERS ALSO SAW THE DEAL AS A SIGNAL THAT OTHER ISSUERS MIGHT FOLLOW IT'S A GREAT DEAL A NICE SIGNAL TO MARKET A SYNDICATE OFFICIAL SAID HOPEFULLY THIS ANSWERS THE CONCERNS OF THE ANXIOUS MCI ORIGINALLY PLANNED TO SELL ABOUT 600 MILLION OF DEBT BUT IMPROVED MARKET CONDITIONS PROMPTED THE TELECOMMUNICATIONS COMPANY TO INCREASE THE SALE MEANWHILE THE BANK OF CHINA DEAL REPORTEDLY FOUND INTEREST MAINLY FROM US INVESTORS AND WENT REASONABLY WELL SYNDICATE OFFICIALS SAID DESPITE THE POOR PERFORMANCE OF A RECENT BOND OFFERING FROM CHINA LAST MONTH CHINA SOLD 1 BILLION OF 65 COUPON 10YEAR GLOBAL BONDS WHICH HAVE SINCE DROPPED MORE THAN 65 POINTS OR MORE THAN 65 FOR A BOND WITH 1000 FACE VALUE AS THEIR YIELD ROSE TO 753 FROM 6582 YESTERDAY THE BANK SOLD 400 MILLION OF NONCALLABLE 6 3/4 COUPON NOTES MATURING IN 1995 AT 9971 TO YIELD 6819 THE BANK ALSO SOLD 100 MILLION OF NONCALLABLE 8 1/4 COUPON MATURING 2014 AT 997 TO YIELD 8281 A PORTFOLIO MANAGER WHO BUYS INTERNATIONAL SECURITIES SAID HE SHUNNED THE DEAL BECAUSE THE DEBT WAS PRICED AT A YIELD SPREAD THAT HE CONSIDERED TOO NARROW TO COMPENSATE FOR THE CREDIT OF THE ISSUE WHICH ISN'T GUARANTEED BY CHINA BOTH PARTS OF THE BANK OF CHINA OFFERING ARE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP AS WAS THE GLOBAL CHINA OFFERING BANK OF CHINA'S FIVEYEAR NOTES WERE SOLD AT A SPREAD OF 098 PERCENTAGE POINT ABOVE US TREASURYS WHILE THE 20YEAR BONDS WERE PRICED AT A SPREAD OF 135 PERCENTAGE POINTS ABOVE TREASURYS CHINA'S GLOBAL BONDS ON THE OTHER HAND WERE SOLD LAST MONTH AT A SPREAD OF 085 PERCENTAGE POINT ABOVE THE 10YEAR US TREASURY BUT THE YIELD GAP BETWEEN THE SECURITIES HAS WIDENED TO ABOUT 112 PERCENTAGE POINTS IN RECENT WEEKS MUNICIPAL BONDS FINISHED DEALINGS NARROWLY MIXED AFTER DRIFTING FOR THE SECOND CONSECUTIVE DAY THE MARKET CONTINUES TO CONSOLIDATE AFTER THE PLUMMET IN THE LAST FEW WEEKS THAT WAS TRIGGERED BY THE FEDERAL RESERVE'S TIGHTENING FEB 4 IN THE CASH MARKET PRICES WERE ABOUT 1/8 POINT LOWER TO 1/4 HIGHER IN LATE TRADING IN NEWISSUE ACTION THE HIGHLIGHT WAS THE COMPETITIVE SALE OF CALIFORNIA'S 700 MILLION VARIOUSPURPOSE GENERAL OBLIGATION BONDS THAT OFFERING WAS WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 556218 YIELDS RANGE FROM 325 IN 1995 TO 600 IN 2023 AND 2024 BONDS DUE IN 2002 AND 2003 ARE INSURED BY AMBAC INDEMNITY CORP WHILE BONDS DUE IN 2020 ARE INSURED BY FINANCIAL SECURITY ASSURANCE INC THOSE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND STANDARD & POOR'S THE BALANCE OF THE BONDS WHICH ARE UNINSURED HAVE A DOUBLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P IN MUNI TRADING THE PRICE FOR THE FLORIDA BOARD OF EDUCATION'S 5125 OF 2022 BONDS BARELY BUDGED AFTER CLOSING AT 89 3/8 LATE TUESDAY THOSE SECURITIES CURRENTLY YIELD 590 THOMAS D LAURICELLA AND LAUREN YOUNG CONTRIBUTED TO THIS ARTICLE 9403100020 940310 TECHNOLOGY PATENT APPLICATIONS SHOULD BE DISCLOSED FASTER US AIDE SAYS WASHINGTON THE JUSTICE DEPARTMENT ENDORSED THE CONCEPT OF MORE RAPID DISCLOSURE OF THE CONTENTS OF PATENT APPLICATIONS BUT INDICATED MORE STUDY IS NEEDED ON HOW TO ACHIEVE IT IN TESTIMONY BEFORE THE SENATE SUBCOMMITTEE ON PATENTS COPYRIGHTS AND TRADEMARKS RICHARD GILBERT AN ASSISTANT ATTORNEY GENERAL IN THE ANTITRUST DIVISION SAID THE ADMINISTRATION ALSO SUPPORTS MAKING PATENT TERMS RUN 20 YEARS FROM THE DATE OF APPLICATION RATHER THAN 17 YEARS FROM THE DATE A PATENT IS GRANTED LEGISLATION SPONSORED BY SEN DENNIS DECONCINI D ARIZ WOULD REQUIRE DISCLOSURE OF PATENT APPLICATIONS AFTER 18 MONTHS EVEN IF NO PATENT HAS BEEN ISSUED CURRENTLY PATENT APPLICATIONS ARE SECRET UNTIL A PATENT IS GRANTED MR GILBERT SAID THE DEPARTMENT BELIEVES THE ISSUE NEEDS FURTHER STUDY TO ENSURE BALANCE BETWEEN DISCLOSING INFORMATION THAT WOULD ENCOURAGE TECHNOLOGICAL DEVELOPMENTS AND PROTECTING THE INTELLECTUAL PROPERTY OF INVENTORS AN AIDE TO MR DECONCINI SAID THE DISCLOSURE PROVISION WOULD PREVENT INVENTORS FROM PURPOSELY DELAYING COMPLETION OF THE APPLICATION PROCESS SUCH DELAYS EFFECTIVELY EXTEND THE PATENT PROTECTION TERM BECAUSE INFORMATION ABOUT INVENTIONS REMAINS SECRET DURING THE APPLICATION PROCESS DELAYS EFFECTIVELY DENY COMPETITORS ACCESS TO THE TECHNOLOGY IN MOST CASES INCREASING PATENT TERMS THREE YEARS WHILE MAKING THE TERMS BEGIN EARLIER WOULD SLIGHTLY INCREASE THE EFFECTIVE TERM OF PATENTS THAT'S BECAUSE IT GENERALLY TAKES ALMOST TWO YEARS FOR PENDING PATENTS TO GAIN APPROVAL IN THE BIOTECHNOLOGY AREA HOWEVER APPROVAL CAN TAKE MUCH LONGER 9403100019 940310 BUSINESS BRIEF PHILLIPS PETROLEUM CO SETTLEMENT LEADS TO LOWER REVISED FOURTHQUARTER NET PHILLIPS PETROLEUM CO SAID IT REVISED ITS NET INCOME FOR THE FOURTH QUARTER AND YEAREND 1993 BECAUSE OF A LAWSUIT SETTLEMENT THAT WAS MORE COSTLY THAN THE BARTLESVILLE OKLA COMPANY HAD FORECAST PHILLIPS SAID ITS REVISED FOURTH QUARTER NET INCOME IS 20 MILLION OR EIGHT CENTS A SHARE IN JANUARY THE COMPANY HAD ANNOUNCED FOURTH QUARTER NET INCOME OF 39 MILLION OR 15 CENTS A SHARE FOR FULL YEAR 1993 REVISED NET IS 243 MILLION OR 93 CENTS A SHARE ORIGINALLY THAT FIGURE HAD BEEN 262 MILLION OR 1 A SHARE THE REVISION IS THE RESULT OF AN AGREEMENT TO SETTLE 15 CLAIMS STEMMING FROM AN OCTOBER 1989 FIRE AND EXPLOSION THAT KILLED 23 WORKERS THE AMOUNT OF THE SETTLEMENT WHICH PHILLIPS WOULDN'T DISCLOSE WAS HIGHER THAN THE COMPANY HAD SET ASIDE FOR CONTINGENT LIABILITIES AS A RESULT THE COMPANY SAID IT MADE AN ADDITIONAL ACCRUAL TO COVER FUTURE LIABILITY EXPOSURE IN THE REMAINING UNSETTLED CASES WHICH NUMBER ABOUT 150 9403100018 940310 INDUSTRY FOCUS EUROPE'S AUTO INDUSTRY FACES DILEMMA ON CUTBACKS MANY COMPANIES UNDER PRESSURE BALK AT FOLLOWING BIG THREE'S EXAMPLE BY AUDREY CHOI AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA AFTER SUFFERING ITS SHARPEST DECLINE SINCE WORLD WAR II THE EUROPEAN AUTO INDUSTRY IS CONFRONTING THE SAME UGLY EQUATION THAT FACED DETROIT'S BIG THREE NOT LONG AGO WINNING MEANS SHARPLY INCREASING PRODUCTIVITY AND CUTTING JOBS AS THE HEADS OF EUROPE'S AUTO INDUSTRY GATHER FOR THE ANNUAL GENEVA AUTO SHOW WHICH OPENED THIS WEEK A SURVEY OF THE WINNERS AND LOSERS IN THE EUROPEAN AUTO WARS SHOWS THAT THOSE COMPANIES THAT ARE AGGRESSIVELY FOLLOWING THE US MODEL CUTTING COSTS AND TRIMMING WORK FORCES ARE THE ONES THAT ARE CURRENTLY PROFITABLE GENERAL MOTORS CORP'S EUROPEAN UNIT BAYERISCHE MOTOREN WERKE AG AND RENAULT SA MEANWHILE COMPANIES SUCH AS VOLKSWAGEN AG AND FIAT SPA WHICH HAVE TRIED TO DELAY MASSIVE JOB CUTS ARE DROWNING IN RED INK FORD MOTOR CO'S EUROPEAN OPERATIONS ARE SOMEWHERE IN BETWEEN HAVING MADE SIGNIFICANT CUTBACKS BUT CONTINUING TO LOSE MONEY THUS THERE REMAIN QUESTIONS OVER WHETHER EUROPE'S SICK AUTO INDUSTRY CAN HEAL ITSELF LAST YEAR EUROPEAN CAR SALES PLUNGED BY MORE THAN TWO MILLION UNITS TO 113 MILLION VEHICLES AND THE OUTLOOK FOR THIS YEAR IS FOR SALES TO STAY ROUGHLY FLAT EUROPEAN GOVERNMENT OFFICIALS AND UNION LEADERS WHO WIELD CONSIDERABLE CLOUT IN CORPORATE BOARDROOMS ARE BATTLING THE INDUSTRY'S EFFORTS TO CUT JOBS AND COSTS THE RESULT MAY BE THE OPPOSITE OF WHAT GOVERNMENTS AND UNIONS INTEND PROLONGED PAIN MORE LOST SALES AND MORE LOST JOBS WHAT'S EMERGING IN EUROPE IS A SUPERCOMPETITIVE ENVIRONMENT FOR COMPANIES THAT ARE USED TO BEING PROTECTED IN THEIR HOME MARKETS SAYS GAREL RHYS A PROFESSOR OF MOTOR INDUSTRY ECONOMICS AT THE UNIVERSITY OF WALES THE STRUCTURAL TRANSFORMATION SWEEPING THE EUROPEAN AUTO INDUSTRY COULD HARDLY COME AT A WORSE TIME FOR EUROPE'S GOVERNMENTS WITH JOB CREATION AT THE TOP OF THE AGENDA FOR POLITICIANS ACROSS THE CONTINENT A STRATEGIC SLIMMINGDOWN OF THE AUTO INDUSTRY TRADITIONALLY THE SINGLE LARGEST INDUSTRIAL EMPLOYER IS A POLITICAL NIGHTMARE AUTO INDUSTRY LEADERS ACKNOWLEDGE THAT AS EUROPE FOLLOWS THE US AND MOVES TOWARD JAPANESESTYLE LEAN PRODUCTION SYSTEMS MOST OF THE JOBS LOST IN THIS RECESSION WON'T COME BACK EVEN WHEN THE MARKET REBOUNDS IT'S A REAL MESS WE NEED SOME BIG MERGERS AND STREAMLINING IN THE INDUSTRY BUT IT DOESN'T LOOK LIKE THE WILL IS THERE TO MAKE IT HAPPEN SAYS KARL LUDVIGSEN MANAGING DIRECTOR OF LUDVIGSEN ASSOCIATES A BRITAINBASED CONSULTING FIRM TO THE AUTO INDUSTRY FIAT FOR EXAMPLE HAD TO FIGHT THE ITALIAN GOVERNMENT TO GET APPROVAL FOR 15000 LAYOFFS OVER THE NEXT SEVERAL YEARS PRESSURE FROM GERMAN POLITICIANS AND UNION LEADERS LED VW TO TURN TO A FOURDAY WORK WEEK AND AN EFFECTIVE 10 RISE IN HOURLY WAGES INSTEAD OF CUTTING SOME 30000 JOBS BMW'S DEAL TO ACQUIRE ROVER CARS OF THE UK MARKED A STEP TOWARD A CONSOLIDATION IN THE EUROPEAN INDUSTRY BUT THE COLLAPSE OF THE MUCH BIGGER MARRIAGE PLANNED BETWEEN RENAULT AND VOLVO SUGGESTS THAT COMPLEX NATIONALISTIC ISSUES COULD HAMPER FURTHER CONSOLIDATION AS SOON AS WE SAW IN THE FALL OF 1992 THAT DEMAND WASN'T GOING TO REBOUND WE AGGRESSIVELY ENCOURAGED EMPLOYEES TO GO INTO EARLY RETIREMENT AND TOOK STEPS TO REDUCE OUR EMPLOYMENT BY 7 ROUGHLY 7000 PEOPLE IN 1993 SAYS LOUIS R HUGHES PRESIDENT OF GM EUROPE CONSEQUENTLY GM'S EUROPEAN CAR AND TRUCK OPERATIONS EARNED 605 MILLION LAST YEAR MAKING IT THE MOST PROFITABLE CAR COMPANY IN EUROPE FOR THE FOURTH YEAR IN A ROW IF NOT FOR AN 800 MILLION EXTRAORDINARY CHARGE TO COVER WORKFORCE REDUCTION PROGRAMS AND CURRENCY SWINGS RESULTS WOULD HAVE BEEN EVEN BETTER MR HUGHES SAYS BUT MR HUGHES SAYS GM EUROPE ISN'T FINISHED CUTTING WITH NO SIGNIFICANT SALES REBOUND IN SIGHT HE SAYS WE ARE DEFINITELY GOING TO REDUCE OUR EMPLOYMENT FURTHER THIS YEAR TO MAINTAIN OUR COMPETITIVENESS FORD OF EUROPE HASN'T BEEN AS SUCCESSFUL FINISHING 1993 WITH ABOUT 370 MILLION IN LOSSES BUT THE STRATEGY IS SIMILAR FORD SLASHED 10000 JOBS LAST YEAR BRINGING TOTAL EMPLOYMENT TO 83000 AND THAT WAS A MAJOR FACTOR IN HELPING THE COMPANY TO DRASTICALLY NARROW ITS LOSSES SAYS JACQUES NASSER FORD OF EUROPE CHAIRMAN EVEN JACQUES CALVET CHAIRMAN OF PSA PEUGEOT CITROEN SA WHO IS ONE OF THE INDUSTRY'S MOST VOCAL ADVOCATES OF STRICT TRADE BARRIERS AGAINST JAPANESE AND KOREAN IMPORTS IS WELL VERSED IN THE IDEA OF CONTINUOUS LABOR REDUCTION HE SAYS PEUGEOT HAS CUT 5 TO 7 OF ITS STAFF IN EACH OF THE PAST FEW YEARS AND EXPECTS TO TAKE ANOTHER 5 CUT THIS YEAR TRIMMING 8000 JOBS FROM A WORK FORCE OF 144000 STILL MR CALVET COMPLAINS EVEN THOUGH WE ARE A PRIVATE COMPANY AND I AM FULLY INDEPENDENT TO DO WHAT I WANT DO YOU KNOW HOW DIFFICULT IT IS TO TELL THE FRENCH GOVERNMENT I WANT TO REDUCE THE WORK FORCE THE GOVERNMENT OF EDOUARD BALLADUR HAS TRIED TO PROVIDE ITS OWN DOMESTIC ANSWER TO THE PROBLEM INTRODUCING A SERIES OF MEASURES TO GIVE THE FRENCH AUTO INDUSTRY AND HENCE FRENCH EMPLOYMENT A SHOT IN THE ARM THESE INCLUDE SUCH STEPS AS OFFERING A 860 CHECK FROM THE GOVERNMENT TO ANYONE WHO TURNS IN A CAR AT LEAST 10 YEARS OLD TO BUY A NEW CAR ANALYSTS HOWEVER WORRY THAT SUCH MEASURES ARE BAD MEDICINE INSTEAD INDUSTRY OFFICIALS AND ANALYSTS SAY EUROPE'S AUTO MAKERS MUST COME OUT FROM BEHIND THEIR PROTECTIVE BARRIERS AND PREPARE TO COMPETE ON THE GLOBAL STAGE JUST AS US AUTO MAKERS WERE FORCED TO DO IN THE 1980S BY JAPANESE RIVALS IT WILL CLEARLY BE A CHALLENGE TO THE EUROPEANS FOR THE REST OF THE DECADE SAYS JOHN LAWSON RESEARCH DIRECTOR AT DRI/MCGRAWHILL IN LONDON BECAUSE THE EUROPEAN INDUSTRY IS NOT YET VERY GLOBALLY ORIENTED BUT GLOBAL REACH ALONE ISN'T ENOUGH VW SELLS CARS IN ALL THE MAJOR MARKETS OF THE WORLD INCLUDING KEY GROWTH MARKETS SUCH AS CHINA EASTERN EUROPE AND LATIN AMERICA STILL VW RACKED UP LOSSES ESTIMATED AT 23 BILLION MARKS 134 BILLION FOR 1993 LARGELY BECAUSE IT IS SADDLED WITH HIGHCOST GERMAN OPERATIONS EVEN WHEN THE EUROPEAN CAR MARKET STARTS RECOVERING THE PRESSURE TO CUT BACK WON'T NECESSARILY STOP BECAUSE IT WILL BE THE COMPANIES THAT MAKE THE BIGGEST PRODUCTIVITY ADVANCES THAT WILL BE IN THE BEST POSITION TO SEIZE MARKET SHARE CLEARLY CAR MAKERS IN THE FUTURE WILL HAVE TO BE ABLE TO FIND A WAY TO MAKE PROFITS OFFERING BETTER CARS CHEAPER SAYS PETER SCHMIDT OF AUTOMOTIVE INDUSTRY DATA LTD A BRITISH CONSULTING GROUP IF YOU DON'T MOVE NOW YOU DIE 9403100017 940310 WHAT'S NEWS WORLDWIDE PUBLIC HEARINGS APPEARED LIKELY ON WHITEWATER DESPITE FISKE'S OPPOSITION THE PROBABILITY OF CONGRESSIONAL HEARINGS INCREASED DESPITE THE SPECIAL COUNSEL'S EFFORTS TO PERSUADE LAWMAKERS THAT THE SESSIONS COULD THWART HIS INVESTIGATION BUT TWO GOP SENATORS SAID REPUBLICANS MIGHT DELAY ANY HEARINGS AT LEAST UNTIL FISKE FINISHED THE FIRST PHASE OF HIS INQUIRIES SEPARATELY 81 REPUBLICAN HOUSE MEMBERS ASKED THE OFFICE OF GOVERNMENT ETHICS TO INVESTIGATE HILLARY CLINTON'S HOLDINGS IN AN INVESTMENT PARTNERSHIP THAT SOLD SHORT HEALTHCARE STOCKS A WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT MORE AMERICANS VIEW WHITEWATER AS A POLITICAL SQUABBLE THAN AS EVIDENCE OF MISCONDUCT BY CLINTON SUPPORT IS ERODING FOR THE CLINTON HEALTH PLAN ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL AT THE SAME TIME HOWEVER THE POLL REVEALS STRONG SUPPORT FOR THE BASIC PROVISIONS OF THE PRESIDENT'S PLAN MANY PEOPLE DON'T REALIZE THAT THESE PROVISIONS ARE PART OF THE CLINTON PROPOSAL THE US SHOULD EXPECT TO CONTRIBUTE ABOUT HALF THE 50000 TROOPS THAT PROBABLY WOULD BE NEEDED TO MONITOR A PEACE PACT IN BOSNIA THE JOINT CHIEFS CHAIRMAN SAID MEANWHILE ADMINISTRATION OFFICIALS SAID THE US IS CONSIDERING NEARLY DOUBLING ITS TROOPS IN MACEDONIA TO SOME 500 PEACEKEEPERS CLINTON UNVEILED HIS PROPOSAL FOR STREAMLINING THE NATION'S UNEMPLOYMENT SYSTEM WHILE PROVIDING INCREASED JOBSEARCH SERVICES COUNSELING AND TRAINING FOR THE JOBLESS THE PLAN PROJECTED TO COST MORE THAN 13 BILLION OVER FIVE YEARS IS TARGETED LARGELY AT THE MIDDLE CLASS FIVE MORTARS WERE FIRED AT LONDON'S HEATHROW AIRPORT AND PARLIAMENT VOTED SHORTLY AFTERWARD TO RENEW BRITAIN'S ANTITERRORISM LAWS NO ONE WAS INJURED IN THE ATTACK WHICH POLICE LINKED TO THE IRISH REPUBLICAN ARMY AN ISRAELI INQUIRY COMMISSION INSPECTED THE HEBRON MOSQUE WHERE A JEWISH SETTLER KILLED PALESTINIANS THE PANEL WAS TOLD THAT ARMY GUARDS LET THE GUNMAN ENTER THE MOSQUE EVEN THOUGH HE WORE A MARKSMAN'S PROTECTIVE HEADSET AND CARRIED A BAG OF AMMUNITION HE TOLD AN OFFICER I'M DOING RESERVE DUTY AS HE ENTERED THE SHRINE A TOP CHINESE DISSIDENT HAS WRITTEN AN OPEN LETTER CALLING FOR THE NATIONAL PEOPLE'S CONGRESS TO DISCUSS INDIVIDUAL POLITICAL RIGHTS AND GODGIVEN HUMAN RIGHTS AT ITS ANNUAL SESSION STARTING TODAY THE DISSIDENT WANG DAN HAD BEEN WARNED BY POLICE EARLIER THIS WEEK TO STOP HIS PRODEMOCRACY ACTIVITIES OR FACE HARSH PENALTIES YELTSIN REFUSED TO MEET WITH NIXON IN MOSCOW BECAUSE THE FORMER US PRESIDENT CONFERRED WITH THE RUSSIAN PRESIDENT'S POLITICAL OPPONENTS FORMER VICE PRESIDENT RUTSKOI AND COMMUNIST LEADER ZYUGANOV OTHER GOVERNMENT OFFICIALS ALSO CANCELED THEIR SCHEDULED MEETINGS WITH NIXON WHO ARRIVED SUNDAY RUSSIA'S DEFENSE MINISTER REJECTED DEMANDS TO WITHDRAW TROOPS FROM ESTONIA AND LATVIA BY AUG 31 DECLARING THAT NO ONE CAN TELL MOSCOW WHAT TO DO IN A SHARP REBUKE TO WESTERN LEADERS WHO HAVE BEEN INSISTING THAT RUSSIA MUST ADHERE TO THE DEADLINE GRACHEV SAID THE PACE OF WITHDRAWAL IS AN INTERNAL AFFAIR FOUR MORE NATIONS WILL WITHDRAW THEIR SOLDIERS FROM SOMALIA UN OFFICIALS SAID FOLLOWING SIMILAR PULLOUT MOVES BY THE US AND NINE OTHER COUNTRIES UN OFFICIALS EXPRESSED CONCERN THAT STILL MORE FOREIGN TROOPS WOULD LEAVE THE AFRICAN NATION WEAPONS INSPECTORS HAVE EXPERIENCED SOME DIFFICULTIES IN EXAMINING NORTH KOREAN NUCLEAR SITES THE STATE DEPARTMENT SAID AND THE US URGED PYONGYANG TO FULFILL ITS COMMITMENTS ONE US OFFICIAL SAID PROBLEMS HAD DEVELOPED OVER WHERE THE INTERNATIONAL INSPECTORS COULD GO SOUTH AFRICA'S PRESIDENT DE KLERK BALKED AT USING FORCE AGAINST THE GOVERNMENT OF BOPHUTHATSWANA WHERE PROELECTION PROTESTERS WERE HURT IN CLASHES WITH THE BLACK HOMELAND'S POLICE BOPHUTHATSWANA'S LEADER OPPOSES APRIL'S VOTE THE AFRICAN NATIONAL CONGRESS HOPES TO SWEEP THE VOTE AND LATER REINCORPORATE ALL 10 HOMELANDS DIED LAWRENCE SPIVAK 93 MODERATOR OF NBC'S MEET THE PRESS FROM ITS BEGINNING IN 1947 UNTIL 1975 IN WASHINGTON OF CONGESTIVE HEART FAILURE 9403100016 940310 INTERNATIONAL IRA IS LINKED TO MORTAR FIRE AT HEATHROW ATTACK ON LONDON AIRPORT IS EXPECTED TO SET BACK PEACE EFFORT FOR ULSTER BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A TERRORIST ATTACK LIKELY TO FURTHER SET BACK THE DWINDLING PROSPECTS FOR PEACE IN NORTHERN IRELAND FIVE MORTAR SHELLS WERE FIRED YESTERDAY AT HEATHROW AIRPORT APPARENTLY BY THE IRISH REPUBLICAN ARMY NO ONE WAS INJURED AS THE HOMEMADE MORTAR SHELLS FAILED TO EXPLODE BUT THE ATTACK CAUSED MAJOR DISRUPTIONS AT THE WORLD'S BUSIEST AIRPORT ALTHOUGH NO ONE IMMEDIATELY CLAIMED RESPONSIBILITY FOR THE ATTACK POLICE SAID TELEPHONE CALLERS WHO ISSUED WARNINGS ABOUT THE ATTACK USED RECOGNIZED IRA CODE WORDS THE ATTACK COMES AT A TIME WHEN THE BRITISH AND IRISH GOVERNMENTS ARE PUSHING A JOINT PEACE INITIATIVE THAT OFFERS A PLACE AT THE NEGOTIATING TABLE TO SINN FEIN THE IRA'S POLITICAL WING IF THE IRA AGREES TO A CEASEFIRE UNTIL NOW SINN FEIN HAS DECLINED TO ACCEPT OR REJECT THE OFFER INSTEAD CALLING FOR WHAT AMOUNTS TO FURTHER CONCESSIONS BUT THE LATEST ATTACK IS CERTAIN TO BE INTERPRETED AS A SIGN TO ANY MODERATES INSIDE SINN FEIN AND TO THE BRITISH GOVERNMENT THAT THE IRA DOESN'T PLAN TO GIVE UP ITS TERRORIST CAMPAIGN TO GET THE BRITISH TO LEAVE ULSTER INDEED THE ATTACK CAME AS PARLIAMENT WAS IN THE MIDST OF A DEBATE OVER WHETHER TO RENEW BRITAIN'S PREVENTION OF TERRORISM ACT WHICH PERMITS THE GOVERNMENT TO DETAIN SUSPECTED TERRORISTS FOR AS MUCH AS SEVEN DAYS WITHOUT SEEKING A COURT RULING THE MPS THEN VOTED TO RENEW THE LAW IF EVER THERE WAS A SIGN THAT THE IRA HAVE NO INTENTION OF DISCUSSING PEACE THEN THIS WAS THE SIGN SAID TERRY DICKS A CONSERVATIVE MP I WANT SOME TOUGH RESPONSE FROM THE GOVERNMENT WE SHOULD STOP PUSSYFOOTING ABOUT WITH THESE PEOPLE HE SAID THE BRITISH AND IRISH GOVERNMENTS HAVE SAID THAT THEY INTEND TO TRY TO PROCEED WITH THE PEACE PROCESS WITH OR WITHOUT SINN FEIN AND THE IRA BUT SKEPTICS HAVE SAID THAT ANY SETTLEMENT WITHOUT THEM WILL BE EXTREMELY DIFFICULT THE MORTAR SHELLS WERE LAUNCHED ABOUT 6 PM YESTERDAY FROM A CAR IN A HOTEL PARKING LOT ABOUT A QUARTER MILE FROM HEATHROW TWO LANDED ON A RUNWAY BUT NO AIRCRAFT WERE HIT THE INCIDENT SHOWS THAT THE IRA IS STILL CAPABLE OF STAGING SPECTACULAR ATTENTIONGETTING ATTACKS IN LONDON THE GROUP FIRED MORTAR SHELLS AT NO 10 DOWNING ST THE PRIME MINISTER'S RESIDENCE IN FEBRUARY 1991 WITH ONE EXPLODING ABOUT 40 FEET AWAY ADDITIONALLY BOTH LAST YEAR AND IN 1992 THE IRA EXPLODED MASSIVE BOMBS IN LONDON'S FINANCIAL DISTRICT WITH THE MOST RECENT BLAST KILLING ONE PERSON INJURING 45 OTHERS AND CAUSING AS MUCH AS 1 BILLION 149 BILLION IN DAMAGES THE GOVERNMENT HAS SINCE BEEFED UP SECURITY IN THE AREA 9403100015 940310 FAIRY SHRIMP TALE PRAWNS IN A BATTLE WITH DEVELOPERS ONE MAN'S MUD PUDDLE MAY BE ANOTHER'S VERNAL POOL DITCH OR NATURAL HABITAT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL SACRAMENTO CALIF THIS IS A FAIRYSHRIMP TALE THAT CAME TRUE ONCE UPON A TIME UP UNTIL 1990 THREE SPECIES OF FAIRY SHRIMP WERE SO OBSCURE THAT THEY DWELT ON THIS PLANET UNNOTICED BY HUMANKIND BUT IN JUST FOUR YEARS THE VERNAL POOL LONGHORN AND CONSERVANCY FAIRY SHRIMP HAVE GONE FROM UNDETECTED CRUSTACEANS TO PRAWNS IN A BIGGER BATTLE BETWEEN ENVIRONMENTALISTS AND DEVELOPERS THESE TINY CREATURES AREN'T THE STUFF THAT SHRIMP COCKTAILS ARE MADE OF BIOLOGICAL COUSINS OF THE SEA MONKEYS SOLD THROUGH ADS IN COMIC BOOKS FAIRY SHRIMP MEASURE ABOUT AN INCH FULLY GROWN THEY SWIM UPSIDE DOWN IN MUD PUDDLES THROUGHOUT CALIFORNIA'S CENTRAL VALLEY WHERE THEY FEED ON PLANKTON BUT THE MOST REMARKABLE ATTRIBUTE OF THE THREE NEWLY DISCOVERED SPECIES IS THEIR ABILITY TO TURN THE FACES OF SACRAMENTO COUNTY DEVELOPERS RED THE FAIRY SHRIMP AND THE DEVELOPERS UNWITTINGLY LIVED TOGETHER IN PEACE UNTIL MAY 1990 WHEN THE THREE NEW SPECIES WERE FIRST WRITTEN UP IN THE JOURNAL OF CRUSTACEAN BIOLOGY IN ITSELF THE DISCOVERY WAS HARDLY EARTHSHAKING SCIENTISTS IDENTIFY 7000ODD NEW PLANT AND ANIMAL SPECIES SOMEWHERE IN THE WORLD EACH YEAR HARVARD ENTOMOLOGIST EDWARD O WILSON A LEADING SCIENTIFIC ADVOCATE OF BIODIVERSITY ESTIMATES THAT THE 14 MILLION KNOWN SPECIES LOGGED THUS FAR REPRESENT LESS THAN ONETENTH THE TOTAL CURRENTLY INHABITING THE EARTH IT IS A MYTH THAT SCIENTISTS BREAK OUT CHAMPAGNE WHEN A NEW SPECIES IS DISCOVERED MR WILSON HAS WRITTEN OUR MUSEUMS ARE GLUTTED WITH NEW SPECIES WHAT HAPPENED NEXT HOWEVER WAS SOMEWHAT MORE UNUSUAL FEW CREATURES THE SNAIL DARTER COMES TO MIND HAVE GONE SO RAPIDLY FROM DISCOVERY TO THE THREAT OF EXTINCTION IN NOVEMBER 1990 SIX MONTHS AFTER THE JOURNAL ARTICLE APPEARED ROXANNE BITTMAN A BOTANIST WITH CALIFORNIA'S FISH AND GAME DEPARTMENT PETITIONED THE US FISH AND WILDLIFE SERVICE TO LIST THE THREE NEW FAIRY SHRIMP SPECIES AS ENDANGERED THE AGENCY FORMALLY PROPOSED THE LISTING IN 1992 A FINAL DECISION IS PENDING IF THE DRIVE TO DECLARE THE SPECIES ENDANGERED SUCCEEDS DEVELOPERS SAY MANY OF THEIR PROJECTS HERE WILL BE DEAD IN THE WATER SO RIVAL BIOLOGISTS HAVE BEEN MUD WRESTLING THE DEVELOPERS HAVE SENT A TEAM OF ENVIRONMENTAL CONSULTANTS UP AND DOWN THE STATE DIPPING CANVAS NETS INTO MUDDY DITCHES TO SHOW THAT CALIFORNIA HAS NO SHORTAGE OF FAIRY SHRIMP THEY TAKE TO THE SKIES TO VIDEOTAPE THE FAIRY SHRIMP'S NATURAL HABITAT GEOLOGICAL CREASES IN THE DRY SIERRA FOOTHILLS THAT FILL WITH RAINWATER IN THE WINTER MONTHS BECOMING VERNAL POOLS COME SPRINGTIME FROM THE COPILOT'S SEAT OF A DRONING PROP PLANE PAUL SUGNET A BIOLOGIST WORKING FOR DEVELOPERS LED BY ANGELO TSAKOPOULOS THE OWNER OF AKT DEVELOPMENT CORP POINTS TO STREAKS OF GLINTING BLUE IN THE GREENISHBROWN LANDSCAPE BELOW CONSERVATIONISTS SAY THESE VERNAL POOLS ARE BEING BULLDOZED OUT OF EXISTENCE MR SUGNET DISAGREES VERNAL POOLS EVERYWHERE YOU LOOK HE SAYS PEERING THROUGH SUNGLASSES THAT SORT OF TALK ENRAGES ROBERT HOLLAND A LEAN GRIZZLED BIOLOGIST AND SHEEP FARMER WADING ANKLEDEEP IN A MUDDY POOL IN SEARCH OF FAIRY SHRIMP HE MUTTERS ABOUT LAND RAPERS MR HOLLAND DENIES HE IS REFERRING TO MR SUGNET WHO DISPUTES MR HOLLAND'S CLAIM THAT AT LEAST TWOTHIRDS AND POSSIBLY AS MANY AS 90 OF CALIFORNIA'S VERNAL POOLS HAVE VANISHED SINCE EUROPEANS FIRST SETTLED HERE MR HOLLAND WROTE A LETTER IN SUPPORT OF THE PROPOSED ENDANGEREDSPECIES LISTING TAKING AIM AT ESURIENT LAND DEVELOPERS THEIR SNIVELING ATTORNEYS AND THEIR ACCEPTA PECUNARIA QUISQUE ADVOCATA' CONSULTANTS A BRIEF GLOSSARY ESURIENT MEANS GREEDY AND THE ITALICIZED PHRASE MR HOLLAND SAYS IS BAD LATIN FOR ANY POSITION FOR A PRICE OH YEAH WELL THE CONSERVATIONISTS AND REGULATORS ARE ZEALOTS WHO WRONGLY VIEW DEVELOPERS AS BAD PEOPLE WHO ONLY TAKE CARE OF THEMSELVES COUNTERS MR TSAKOPOULOS A WEALTHY HOME BUILDER IF THE PROPOSED DESIGNATION IS APPROVED THE DEVELOPERS CONTEND IT COULD COST THEM UP TO 500 MILLION DURING THE NEXT DECADE IN FOREGONE CONSTRUCTION OFFICIALS AT THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE ANSWER THAT THE 1973 ENDANGERED SPECIES ACT DOESN'T PERMIT THEM TO TAKE ECONOMICS INTO ACCOUNT WHEN CONSIDERING A LISTING BESIDES SUCH ACTION IS FAR LESS LIKELY TO STOP BUILDING PROJECTS THAN TO MAKE DEVELOPERS PLAN AND THINK SAYS CAY GOUDE AN ASSISTANT FIELD SUPERVISOR AT THE AGENCY'S SACRAMENTO OFFICE SUSPICIONS ABOUND THAT IN THE ONGOING DEBATE THE FAIRY SHRIMP ARE ACTUALLY A RED HERRING PEOPLE ON THE DEVELOPERS' SIDE WHISPER THAT MS BITTMAN THE BOTANIST IS USING THE NEW SPECIES AS A PRETEXT FOR PROTECTING VARIOUS EXOTIC PLANT SPECIES SUCH AS DOWNINGIA PUSILLA AND ORCUTTIA VISCIDA THAT ARE NATIVE TO THE CENTRAL VALLEY'S VERNAL POOLS MS BITTMAN DENIES THAT SHE IS JUST OUT TO PRESERVE PLANTS BUT SHE AGREES THAT I AM CONCERNED ABOUT PLANTS IN THE HABITAT SHE ADDS THAT PLANT SPECIES DON'T RECEIVE THE SAME LEVEL OF PROTECTION AS ANIMAL SPECIES UNDER THE ENDANGERED SPECIES ACT SO WHY NOT PETITION THE FEDERAL GOVERNMENT TO PROTECT THE HABITAT NOT MERELY THE SHRIMP BECAUSE THERE'S NO ENDANGERED NATURAL COMMUNITY LAW SHE EXPLAINS THE FEDERAL GOVERNMENT CAN MOVE TO LIMIT DEVELOPMENT IN A CRITICAL HABITAT BUT ONLY AFTER A SPECIES WITHIN THAT HABITAT HAS BEEN DECLARED ENDANGERED ON THE OTHER HAND EVIDENCE THAT A HABITAT IS DISAPPEARING CAN BE USED AS A BASIS FOR DECLARING SPECIES FOUND IN THE HABITAT TO BE ENDANGERED VERNAL POOLS DESTROYED BY BULLDOZERS MIGHT DO THE TRICK IN THE REGULATORY KINGDOM OF ENDANGERED SPECIES SUCH A RULING THEN MEANS THAT THE FEDERAL GOVERNMENT CAN MOVE TO PROTECT THE HABITAT BUT DEVELOPERS CLAIM THAT THE FAIRY SHRIMP WHOSE SEA MONKEY RELATIVES ARE SO HARDY THEIR EGGS CAN BE SHIPPED IN LITTLE PACKETS BY MAIL AREN'T NECESSARILY ALL THAT PARTIAL TO VERNAL POOLS PETER BALFOUR A BIOLOGIST WORKING FOR MR SUGNET MAKES THIS POINT BY SCOOPING OUT ONE OF THE FAIRY SHRIMP PROPOSED FOR LISTING AS ENDANGERED FROM A NARROW RAINFILLED DITCH CONSERVATIONISTS ARGUE THAT WHEN FAIRY SHRIMP ARE FOUND IN SUCH PLACES IT USUALLY MEANS THE SPOT IS A VESTIGIAL VERNAL POOL BUT THIS ONE RUNS BETWEEN A HIGHWAY CALLED INDUSTRIAL BOULEVARD AND A GRAVELLY RAILROAD BED MR BALFOUR SAYS THE DITCH WAS PROBABLY CREATED BY BULLDOZERS WHEN THEY LAID THE RAILROAD TRACKS DESPITE THEIR HERCULEAN EFFORTS TO PROVE THAT THE NEWLY DISCOVERED SPECIES ARE HERE TO STAY SOME DEVELOPERS CONFESS THEY CAN'T SEE MUCH DIFFERENCE BETWEEN ONE FAIRY SHRIMP AND ANOTHER WE'RE TALKING ABOUT INVERTEBRATES SAYS CHRIS VRAME PROJECT MANAGER FOR AKT DEVELOPMENT 9403100014 940310 MOUSE TRAP FANS LIKE EURO DISNEY BUT ITS PARENT'S GOOFS WEIGH THE PARK DOWN WALT DISNEY CO BURDENED IT WITH DEBT AND HOTELS SPURNED OTHERS' ADVICE EUROPEANS DO EAT BREAKFAST BY PETER GUMBEL AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS EUROPE GOT ITS FIRST TASTE OF THE MANAGEMENT STYLE OF WALT DISNEY CO WHEN JOE SHAPIRO STARTED KICKING IN A DOOR AT THE LUXURY HOTEL BRISTOL HERE IT WAS 1986 AND DISNEY WAS NEGOTIATING WITH THE FRENCH GOVERNMENT ON PLANS TO BUILD A BIG RESORT AND THEME PARK ON THE OUTSKIRTS OF PARIS TO THE EXASPERATION OF THE DISNEY TEAM HEADED BY MR SHAPIRO THEN THE COMPANY'S GENERAL COUNSEL THE TALKS WERE TAKING FAR LONGER THAN EXPECTED JEANRENE BERNARD THE CHIEF FRENCH NEGOTIATOR SAYS HE WAS ASTONISHED WHEN MR SHAPIRO HIS PATIENCE EBBING RAN TO THE DOOR OF THE ROOM AND BEGAN KICKING IT REPEATEDLY SHOUTING GET ME SOMETHING CHEAP TO BREAK MR SHAPIRO SAYS HE DOESN'T REMEMBER THE INCIDENT THOUGH HE ADDS WITH A LAUGH THERE WERE A LOT OF HISTRIONICS AT THE TIME BUT DISNEY'S KICKDOWNTHEDOOR ATTITUDE IN THE PLANNING BUILDING AND FINANCING OF EURO DISNEY ACCOUNTS FOR MANY OF THE HUGE PROBLEMS THAT PLAGUE THE RESORT WHICH CURRENTLY LOSES 1 MILLION A DAY BECAUSE OF ITS SKYHIGH OVERHEAD AND INTEREST PAYMENTS ON LOANS THE PROJECT IS IN DANGER LESS THAN TWO YEARS AFTER OPENING AS DISNEY AND CREDITOR BANKS TRY TO WORK OUT A COSTLY RESCUE THE SIDES ARE BELIEVED TO BE COMING CLOSER TO AN AGREEMENT BY A DEADLINE OF MARCH 31 THE IRONY IS THAT EVEN THOUGH SOME EARLY FRENCH CRITICS CALLED THE PARK AN AMERICAN CULTURAL ABOMINATION PUBLIC ACCEPTANCE HASN'T BEEN THE PROBLEM EUROPEAN VISITORS SEEM TO LOVE THE PLACE THE MAGIC KINGDOM HAS ATTRACTED AN AVERAGE OF JUST UNDER A MILLION VISITORS A MONTH IN LINE WITH PROJECTIONS AND TODAY IT RANKS AS EUROPE'S BIGGEST PAID TOURIST DESTINATION EURO DISNEY'S TROUBLES INSTEAD DERIVE FROM A DIFFERENT TYPE OF CULTURE CLASH EUROPE MAY HAVE EMBRACED MICKEY MOUSE BUT IT HASN'T TAKEN TO THE BRASH FREQUENTLY INSENSITIVE AND OFTEN OVERBEARING STYLE OF MICKEY'S AMERICAN CORPORATE PARENT OVERLY AMBITIOUS DISNEY MADE SEVERAL STRATEGIC AND FINANCIAL MISCALCULATIONS IT RELIED TOO HEAVILY ON DEBT JUST AS INTEREST RATES STARTED TO RISE AND GAMBLED INCORRECTLY THAT THE 1980S BOOM IN REAL ESTATE WOULD CONTINUE LETTING IT SELL OFF ASSETS AND PAY DOWN THE DEBT QUICKLY IT ALSO MADE UNCHARACTERISTIC SLIPS IN THE PARK ITSELF FROM WRONGLY THINKING EUROPEANS DON'T EAT BREAKFAST TO NOT PROVIDING ENOUGH TOILETS FOR THE HUNDREDS OF BUS DRIVERS DISNEY EXECUTIVES DECLINED TO COMMENT FOR THIS ARTICLE IN THE PAST THE COMPANY HAS BLAMED ITS PROBLEMS ON EXTERNAL FACTORS INCLUDING AN UNEXPECTEDLY SEVERE EUROPEAN RECESSION HIGH INTEREST RATES AND THE DEVALUATION OF SEVERAL CURRENCIES AGAINST THE FRENCH FRANC AND DISNEY SUPPORTERS NOTE THAT MANY OF THE SAME PEOPLE NOW COMPLAINING ABOUT DISNEY'S AGGRESSIVENESS WERE ONLY TOO HAPPY TO SIGN ON WITH DISNEY BEFORE CONDITIONS DETERIORATED BUT DISNEY'S CONTENTIOUS ATTITUDE EXACERBATED THE DIFFICULTIES IT ENCOUNTERED BY ALIENATING PEOPLE IT NEEDED TO WORK WITH SAY MANY PEOPLE FAMILIAR WITH THE SITUATION ITS ANSWER TO DOUBTS OR SUGGESTIONS INVARIABLY WAS DO AS WE SAY BECAUSE WE KNOW BEST THEY WERE ALWAYS SURE IT WOULD WORK BECAUSE THEY WERE DISNEY SAYS BEATRICE DESCOFFRE A FRENCH CONSTRUCTIONINDUSTRY OFFICIAL WHO DEALT WITH THE US COMPANY IF EURO DISNEY HAD BEEN A FINANCIAL SUCCESS FEW WOULD HAVE CARED IN THE PROJECT'S EARLY DAYS BANKS AND PRIVATE INVESTORS FELL OVER ONE ANOTHER TO HELP FINANCE THE DEAL SG WARBURG & CO A BRITISH INVESTMENT BANK THAT ARRANGED EURO DISNEY'S EQUITY OFFERING IN THE UK PUT OUT A BROCHURE DESCRIBING THE PROJECT AS RELATIVELY LOWRISK AS OF DEC 31 EURO DISNEY WHICH OPENED IN APRIL 1992 HAD A CUMULATIVE LOSS OF 604 BILLION FRANCS OR 103 BILLION IN PRACTICAL TERMS DISNEY'S IMAGE PROBLEM COULD PROVE COSTLY TO RESCUE ITS 49OWNED AFFILIATE DISNEY LAST OCTOBER QUIETLY PROPOSED A 2 BILLION RESTRUCTURING TO THE 60 CREDITOR BANKS AND OFFERED TO PICK UP HALF THE TAB PEOPLE FAMILIAR WITH THE PROPOSAL SAY DISNEY WOULD HAVE CONTRIBUTED THREE BILLION FRENCH FRANCS 520 MILLION IN CASH TO A RIGHTS ISSUE AND WAIVED ENOUGH FUTURE MANAGEMENT FEES AND ROYALTIES TO BRING ITS TOTAL CONTRIBUTION TO 1 BILLION BUT THE BANKS FEELING THEY WERE BEING STEAMROLLED BY DISNEY REJECTED THE OFFER THEY HAD A FORMIDABLE IMAGE AND CONVINCED EVERYONE THAT IF WE LET THEM DO IT THEIR WAY WE WOULD ALL HAVE A MARVELOUS ADVENTURE SAYS A TOP FRENCH BANKER INVOLVED IN THE NEGOTIATIONS THE WALT DISNEY GROUP IS MAKING A MAJOR ERROR IN THINKING IT CAN IMPOSE ITS WILL ONCE MORE PEOPLE FAMILIAR WITH THE DEBT NEGOTIATIONS SAY DISNEY AND ITS BANKS HAVE STRUCK A MUCH MORE CONCILIATORY TONE IN JUST THE PAST COUPLE OF WEEKS RAISING HOPES THAT A SOLUTION MAY BE AT HAND IF AN AGREEMENT IS REACHED ANALYSTS SAY DISNEY'S CASHGENERATING POWERS ARE SUCH THAT IT COULD ABSORB THE BLOW OF SPENDING MORE THAN 1 BILLION IN CASH AND DEFERRED FEES TO SAVE EURO DISNEY MORE IMPORTANT WILL BE TO AVOID MORE WRITEOFFS AND LOSSES IN THE FUTURE SO DISNEY CAN MEET THE AMBITIOUS GROWTH TARGETS IT PROMISES ITS SHAREHOLDERS AND PRESERVE ITS FUTURE FEEEARNING POWER IF EURO DISNEY TURNS AROUND THE ALTERNATIVE FOR DISNEY TO WALK AWAY LIKELY WOULD TRIGGER A HOST OF TIMECONSUMING LAWSUITS IN FRANCE AND CAUSE AN IMMEASURABLE LOSS OF PRESTIGE FEW BELIEVE DISNEY WILL ALLOW THE EUROPEAN RESORT TO FAIL EVEN THOUGH IT HAS THREATENED TO CUT OFF FUNDING AT THE END OF THIS MONTH UNLESS IT CAN REACH A DEAL WITH THE BANKS TOO MUCH RIDES ON THE FUTURE OF EURO DISNEY FOR THE US COMPANY THE CREDITORS AND THE FRENCH GOVERNMENT WHICH PROVIDED 750 MILLION IN LOANS AT BELOWMARKET RATES BUILT ROAD AND RAIL NETWORKS TO THE PARK AND ALLOWED DISNEY TO BUY UP HUGE TRACTS OF LAND AT 1971 PRICES ALREADY EURO DISNEY HAS BROUGHT IN NEW MANAGEMENT AND MADE OTHER CHANGES TO SAVE THE PROJECT EVEN DETRACTORS SAY THEY HAVE BEEN IMPRESSED BY THE WAY THE COMPANY IS CHANGING TACK CUTTING PRICES AND REDUCING COSTS THE INITIAL OVERCONFIDENCE OF DISNEY A COMPANY ALREADY KNOWN FOR CORPORATE HUBRIS IS PERHAPS UNDERSTANDABLE THE CURRENT MANAGEMENT TEAM OF CHAIRMAN MICHAEL EISNER AND PRESIDENT FRANK WELLS ARRIVED IN LATE 1984 AND IMMEDIATELY BEGAN TAPPING INTO THEMEPARK FILM AND MERCHANDISING RICHES UNMINED BY THEIR PREDECESSORS IN THE SEVEN YEARS BEFORE EURO DISNEY OPENED THEY TRANSFORMED DISNEY INTO A COMPANY WITH ANNUAL REVENUE OF 85 BILLION UP FROM 1 BILLION MAINLY THROUGH INTERNAL GROWTH FROM THE TIME THEY CAME ON THEY HAD NEVER MADE A SINGLE MISSTEP NEVER A MISTAKE NEVER A FAILURE SAYS A FORMER DISNEY EXECUTIVE THERE WAS A TENDENCY TO BELIEVE THAT EVERYTHING THEY TOUCHED WOULD BE PERFECT FORGED IN THE GOGO CULTURE OF CALIFORNIA AND FLORIDA WHERE GROWTH SEEMED LIMITLESS THE NEW DISNEY TEAM DETERMINED IT WOULDN'T REPEAT TWO MISTAKES OF YEARS PAST LETTING OTHERS BUILD THE LUCRATIVE HOTELS SURROUNDING A PARK AS HAPPENED AT DISNEYLAND IN SOUTHERN CALIFORNIA AND LETTING ANOTHER COMPANY OWN A DISNEY PARK AS IN TOKYO WHERE DISNEY JUST COLLECTS ROYALTIES FROM THE IMMENSELY PROFITABLE ATTRACTION BUT THIS DETERMINATION EXPORTED POORLY TO EUROPE PARTICULARLY WHEN COMBINED WITH MR EISNER'S VOW TO MAKE EURO DISNEY THE MOST LAVISH PROJECT DISNEY HAD EVER BUILT THOUGH TIGHT WITH A BUCK IN MANY WAYS MR EISNER WAS ALMOST OBSESSED WITH MAINTAINING DISNEY'S REPUTATION FOR QUALITY AND HIS DESIGNERS THE CREATIVE PEOPLE WITH WHOM HE IDENTIFIED CONVINCED HIM THAT IN EUROPE HOME OF GREAT MONUMENTS AND ELABORATE CATHEDRALS EURO DISNEY WOULD HAVE TO BRIM WITH DETAIL UNLIKE THE JAPANESE EUROPEANS WOULDN'T ACCEPT CARBON COPIES OF DISNEYLAND AND FLORIDA'S WALT DISNEY WORLD DISNEY REASONED IN ARGUMENT AFTER ARGUMENT EXECUTIVES SAY MR EISNER SIDED WITH THE DESIGNERS AND ARCHITECTS WHO HAD DIRECT ACCESS TO THE CHAIRMAN'S OFFICE AND PILED ON MORE DETAIL EVEN THE CENTERPIECE CASTLE IN THE MAGIC KINGDOM HAD TO BE BIGGER AND FANCIER THAN IN THE OTHER PARKS SO THE COST OF PARK CONSTRUCTION ESTIMATED AT 14 BILLION FRANCS 237 BILLION IN 1989 ROSE BY 340 MILLION TO 16 BILLION FRANCS BEFORE THE OPENING IN APRIL 1992 CONSTRUCTION OF THE HOTELS ESTIMATED AT 34 BILLION FRANCS ROSE TO 57 BILLION ONE MEASURE OF DISNEY'S OVERCONFIDENCE WAS A BELIEF THAT IT COULD PREDICT FUTURE LIVING PATTERNS IN PARIS INVITED TO THE APARTMENT OF FRENCH NEGOTIATOR MR BERNARD IN THE WESTERN PART OF THE CITY WHERE MOST OF THE FRENCH ESTABLISHMENT HAS LONG LIVED MR EISNER ONE EVENING BOASTED YOU LIVE IN THE WEST OF PARIS AS DO YOUR FRIENDS BUT YOUR CHILDREN AND GRANDCHILDREN WILL LIVE IN THE EAST OF PARIS NEAR EURO DISNEY MR BERNARD SAYS SIMILARLY DISNEY EXECUTIVES BELIEVED WRONGLY THAT THEY COULD CHANGE CERTAIN EUROPEAN HABITS SUCH AS A RELUCTANCE TO YANK THEIR CHILDREN FROM SCHOOL IN MIDSESSION AS AMERICANS DO OR THEIR PREFERENCE FOR LONGER HOLIDAYS RATHER THAN SHORT BREAKS WITH HINDSIGHT SOME FORMER EXECUTIVES BANKERS AND OTHERS SAY DISNEY'S BIGGEST MISTAKES WERE ITS OVERAMBITIOUS PLANS TO DEVELOP THE SITE PLUS EURO DISNEY'S FINANCIAL STRUCTURE ITSELF WHICH DEPENDED ON A HIGHLY OPTIMISTIC FINANCIAL SCENARIO WITH LITTLE ROOM FOR GLITCHES BOTH WERE CREATIONS OF GARY WILSON THEN THE CHIEF FINANCIAL OFFICER A MAN KNOWN FOR HIS KNACK FOR CREATING FINANCING PACKAGES THAT PLACED THE RISK FOR MANY DISNEY PROJECTS ON OUTSIDE INVESTORS WHILE KEEPING MUCH OF THE UPSIDE POTENTIAL FOR THE COMPANY MR WILSON NOW COCHAIRMAN OF NORTHWEST AIRLINES CORP AND STILL A DISNEY DIRECTOR DECLINED COMMENT MR WILSON SET UP A FINANCE COMPANY TO OWN THE PARK AND LEASE IT BACK TO AN OPERATING COMPANY THIS OWNERSHIP VEHICLE IN WHICH DISNEY KEPT JUST A 17 STAKE WAS TO PROVIDE TAX LOSSES AND BORROW HUGE SUMS AT RELATIVELY LOW RATES DISNEY WOULD MANAGE THE RESORT FOR HEFTY FEES AND ROYALTIES WHILE OWNING 49 OF THE EQUITY IN THE OPERATING COMPANY EURO DISNEY SCA THE REST WAS SOLD TO THE PUBLIC THE PARK MOREOVER WAS JUST THE CORNERSTONE OF A HUGE AND GROWING REALESTATE DEVELOPMENT BY DISNEY IN THE AREA THE INITIAL NUMBER OF HOTEL ROOMS AT 5200 MORE THAN IN THE ENTIRE CITY OF CANNES WAS EXPECTED TO TRIPLE IN A FEW YEARS AS EURO DISNEY OPENED A SECOND THEME PARK TO KEEP VISITORS AT THE RESORT FOR A LONGER STAY THERE WOULD ALSO BE OFFICE SPACE WHICH WOULD GROW 20 TIMES TO A STUNNING 700000 SQUARE METERS OR JUST SLIGHTLY SMALLER THAN FRANCE'S BIGGEST OFFICE COMPLEX LA DEFENSE IN PARIS AND THE PLAN CALLED FOR SHOPPING MALLS APARTMENTS GOLF COURSES AND VACATION HOMES GALORE EURO DISNEY WOULD TIGHTLY CONTROL THE DESIGN AND BUILD NEARLY EVERYTHING ITSELF SELLING OFF THE COMPLETED COMMERCIAL PROPERTIES IN DUE COURSE AND AT A BIG PROFIT AT FIRST ALL SEEMED TO WORK BEAUTIFULLY DISNEY'S INITIAL EQUITY STAKE IN EURO DISNEY WAS ACQUIRED FOR ABOUT 150 MILLION OR 10 FRANCS A SHARE COMPARED WITH THE INITIAL PRICE TO INVESTORS OF 72 FRANCS A SHARE AFTER THE PUBLIC OFFERING THE VALUE OF THE COMPANY'S STAKE ZOOMED TO 1 BILLION ON THE MAGIC OF THE DISNEY NAME AND LATER TO 23 BILLION WHEN THE STOCK PEAKED JUST BEFORE THE PARK'S OPENING TODAY IT IS WORTH ABOUT 550 MILLION THE COMPANY'S SHARES CLOSED AT 3615 FRANCS YESTERDAY ON THE PARIS STOCK EXCHANGE DOZENS OF BANKS LED BY FRANCE'S BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ EAGERLY SIGNED ON TO PROVIDE CONSTRUCTION LOANS EURO DISNEY'S TOTAL DEBT STANDS AT ABOUT 21 BILLION FRANCS OR ABOUT 35 BILLION SEVERAL EUROPEAN FINANCIAL INSTITUTIONS INCLUDING LAZARD FRERES DISNEY'S OWN ADVISER WORRIED THAT THE PLAN WAS TOO CLEVER ACCORDING TO PEOPLE FAMILIAR WITH THE FINANCING THE COMPANY WAS OVERLEVERAGED THE STRUCTURE WAS DANGEROUS SAYS ONE BANKER WHO SAW THE FIGURES THE PUBLIC OFFERING PRICE SEEMED HIGH AND THE PROPOSED FINANCING APPEARED RISKY BECAUSE IT RELIED ON CAPITAL GAINS FROM FUTURE REALESTATE TRANSACTIONS CRITICS CHARGED BUT DISNEY'S ATTITUDE CURRENT AND FORMER EXECUTIVES SAY WAS THAT THOSE VIEWS REFLECTED THE CAUTIOUS OLDWORLD THINKING OF EUROPEANS WHO DIDN'T UNDERSTAND USSTYLE FREEMARKET FINANCING THOSE WHO DEFEND THE DEAL POINT OUT THAT FOR MORE THAN TWO YEARS AFTER THE OFFERING THE STOCK PRICE CONTINUED TO SWELL AND THAT THE INITIAL LOANS WERE AT A LOW RATE IT WAS LATER COST OVERRUNS THEY SAY AND THE NECESSITY FOR MORE BORROWING THAT HANDCUFFED EURO DISNEY AS THE EUROPEAN RECESSION STARTED TO BITE THOUGH THE FRENCH REALESTATE MARKET TUMBLED TAKING WITH IT DISNEY'S HOPES THAT IT COULD QUICKLY SELL MANY OF THE PARK'S ASSETS ESPECIALLY THE SIX BIG HOTELS THE COMPANY ALSO PASSED UP THE CHANCE TO LESSEN ITS BURDEN DISNEY AT VARIOUS POINTS COULD HAVE HAD PARTNERS TO SHARE THE RISK OR BUY THE HOTELS OUTRIGHT SAYS A DISNEY EXECUTIVE BUT IT DIDN'T WANT TO GIVE UP THE UPSIDE DISNEY'S EARLY WORRIES MAINLY CONCERNED ATTENDANCE IF EURO DISNEY COULD ONLY MEET ITS TARGET OF 11 MILLION VISITORS THE FIRST YEAR IT RECKONED MONEY WOULD ROLL IN THE TARGET WAS MET BUT THE REALITY TURNED OUT TO BE VERY DIFFERENT AND THAT HELPS TO EXPLAIN WHY THE PARK IS DOING REASONABLY WELL WHILE EURO DISNEY IS RACKING UP HUGE LOSSES THE COST OF BUILDING WAS SIMPLY TOO HIGH IN HIS PURSUIT OF PERFECTION MR EISNER HIMSELF ORDERED SEVERAL LASTMINUTE BUDGETBREAKERS FOR EXAMPLE HE REMOVED TWO STEEL STAIRCASES IN DISCOVERYLAND BECAUSE THEY BLOCKED A VIEW OF THE STAR TOURS RIDE THAT COST 200000 TO 300000 A DISNEY OFFICIAL ESTIMATES DISNEY BUILT EXPENSIVE TRAMS ALONG A LAKE TO TAKE GUESTS FROM THE HOTELS TO THE PARK PEOPLE PREFERRED WALKING MINIBARS WERE PLACED IN ECONOMY HOTEL ROOMS THEY LOST MONEY DISNEY BUILT AN 18HOLE GOLF COURSE THEN ADDED NINE HOLES TO ADJOIN 600 NEW HOMES THE HOMES HAVEN'T BEEN BUILT AND THE GOLF COURSES WHICH COST 15 MILLION TO 20 MILLION ARE UNDERUSED SAYS A FORMER EXECUTIVE DISNEY AND ITS ADVISERS FAILED TO SEE SIGNS OF THE APPROACHING EUROPEAN RECESSION WE WERE JUST TRYING TO KEEP OUR HEADS ABOVE WATER SAYS ONE FORMER EXECUTIVE BETWEEN THE GLAMOUR AND THE PRESSURE OF OPENING AND THE INTENSITY OF THE PROJECT ITSELF WE DIDN'T REALIZE A MAJOR RECESSION WAS COMING SO DISNEY PRICED THE PARK AND THE HOTELS MORE TO MEET REVENUE TARGETS THAN TO MEET DEMAND PARK ADMISSION WAS SET AT 4245 FOR ADULTS HIGHER THAN AT ITS US THEME PARKS A ROOM AT THE FLAGSHIP DISNEYLAND HOTEL AT THE PARK'S ENTRANCE COST ABOUT 2000 FRANCS OR ABOUT 340 A NIGHT THE SAME AS A TOP HOTEL IN PARIS THE HOTELS HAVE BEEN JUST OVER HALF FULL ON AVERAGE AND GUESTS HAVEN'T BEEN STAYING AS LONG OR SPENDING AS MUCH AS EXPECTED ON THE FAIRLY HIGHPRICED FOOD AND MERCHANDISE WHILE VISITORS TO FLORIDA'S DISNEY WORLD TEND TO STAY MORE THAN FOUR DAYS EURO DISNEY WITH ONE THEME PARK COMPARED WITH FLORIDA'S THREE IS A TWODAY EXPERIENCE AT MOST MANY GUESTS ARRIVE EARLY IN THE MORNING RUSH TO THE PARK COME BACK LATE AT NIGHT THEN CHECK OUT THE NEXT MORNING BEFORE HEADING BACK TO THE PARK THERE WAS SO MUCH CHECKINGIN AND CHECKINGOUT THAT ADDITIONAL COMPUTER STATIONS HAD TO BE INSTALLED DISNEY EXECUTIVES HAVE FRANTICALLY LOWERED MOST PRICES IN RESPONSE BUT HIGH FIXED COSTS AND LOOMING INTEREST PAYMENTS STILL ARE TOO GREAT A BURDEN WITHOUT THE ADDITION OF MORE DEVELOPMENT AND A SECOND THEME PARK EURO DISNEY IS IN THE WORDS OF ONE SENIOR FRENCH BANKER FAMILIAR WITH THE COMPANY A GOOD THEME PARK MARRIED TO A BANKRUPT REALESTATE COMPANY AND THE TWO CAN'T BE DIVORCED IF IT DIDN'T FORESEE ALL THE POTENTIAL FINANCIAL PITFALLS DISNEY CLEARLY REALIZED AT THE OUTSET THAT IT MIGHT ENCOUNTER CULTURAL PROBLEMS IT SOUGHT TO HEAD THEM OFF BY CHOOSING ROBERT FITZPATRICK AS EURO DISNEY'S PRESIDENT HE IS AN AMERICAN WHO SPEAKS FRENCH KNOWS EUROPE WELL AND HAS A FRENCH WIFE BUT HE SEEMED CAUGHT IN THE MIDDLE AND QUICKLY CAME TO BE REGARDED WITH SUSPICION BY SOME ON BOTH SIDES MR FITZPATRICK WHO WAS REPLACED LAST YEAR BY A FRENCH NATIVE BUT STILL DOES CONSULTING FOR DISNEY DECLINES COMMENT OFFICIALS SYMPATHETIC TO HIM SAY HIS WARNINGS TO DISNEY MANAGEMENT THAT FRANCE SHOULDN'T BE APPROACHED AS IF IT WERE FLORIDA WERE IGNORED WHILE MR FITZPATRICK WAS WELL ACCLIMATED SOME OF THE AMERICAN MANAGERS SENT OVER TO START UP EURO DISNEY HAD THEIR OWN CULTURE SHOCK ONE FRENCH MANAGER SAYS HE REMEMBERS BEING ASTONISHED WHEN AN AMERICAN COLLEAGUE COMPLAINED ABOUT THE COST OF EVIAN BOTTLED WATER WHICH IS CHEAPER IN FRANCE THAN IN THE US IT TURNS OUT THE AMERICAN WAS GOING THROUGH DOZENS OF BOTTLES PER WEEK BECAUSE HE WAS NERVOUS ABOUT USING FRENCH TAP WATER FOR ANYTHING INCLUDING WASHING ONE EXECUTIVE EVEN HAD HIS OWN DOG FOOD FLOWN OVER ANOTHER MANAGER SAYS EUROPEAN EXECUTIVES FELT THEY WERE IN THE SHADOW OF DISNEY CORPORATE TYPES AND ALMOST ALWAYS LOST OUT WHEN THE INTERESTS OF EURO DISNEY AND DISNEY ITSELF WEREN'T THE SAME DISNEY FOR EXAMPLE REFUSED IN THE EARLY STAGES OF DEVELOPMENT TO RENEGOTIATE THE MANAGEMENT AND ROYALTY FEES THAT IT WOULD BE PAID BY EURO DISNEY THAT MIGHT HAVE LESSENED THE FINANCIAL BURDEN ON EURO DISNEY THESE EXECUTIVES SAY UNFAMILIAR WITH THE FRENCH MARKET DISNEY MADE MISTAKES IN SELECTING CONTRACTORS FRENCH CONSTRUCTIONINDUSTRY OFFICIALS SAY TWO GENERAL CONTRACTORS FILED FOR BANKRUPTCY DURING CONSTRUCTION FORCING DISNEY TO PAY TWICE FOR THE WORK DONE BY THE SUBCONTRACTORS ONCE TO THE FAILED GENERAL CONTRACTORS AND AGAIN TO THE 60 OR SO SMALLER FIRMS THAT CARRIED OUT THE WORK EURO DISNEY WON'T SAY HOW MUCH THE DOUBLE PAYMENTS COST BUT FRENCH INDUSTRY SOURCES PEG THE AMOUNT AT ABOUT 200 MILLION FRANCS A NUMBER DISNEY HAS SAID IS TOO HIGH EUROPEAN CREDITOR BANKS FEEL THEY HAVE BEEN VICTIMIZED BY POOR COMMUNICATIONS TOO AND RESENT NOT BEING PROPERLY APPRISED OF THE RESORT'S DIFFICULTIES SOME SAY UNTIL LAST JULY DISNEY CONTINUED TO SAY THAT PLANS FOR THE DEVELOPMENT OF A SECOND THEME PARK WERE ON TRACK IN NOVEMBER EURO DISNEY REPORTED A 905 MILLION LOSS AND DISNEY ITSELF TOOK A 350 MILLION WRITEOFF COVERING ITS INITIAL INVESTMENT AND PROVIDING OPERATING CAPITAL THROUGH MARCH 31 SHORTLY AFTERWARD MR EISNER GAVE AN INTERVIEW TO A FRENCH NEWS MAGAZINE IN WHICH HE RAISED THE POSSIBILITY THAT EURO DISNEY COULD CLOSE DISNEY ADVISERS HOWEVER SAY THE BANKS WERE GIVEN REGULAR DETAILED FINANCIAL STATEMENTS AND WERE JUST TOO SLOW TO SPOT THE PROBLEMS HERE OPERATIONAL ERRORS JUST MADE THINGS WORSE THE POLICY OF SERVING NO ALCOHOL IN THE PARK SINCE REVERSED CAUSED ASTONISHMENT IN A COUNTRY WHERE A GLASS OF WINE FOR LUNCH IS A GIVEN DISNEY THOUGHT MONDAY WOULD BE A LIGHT DAY FOR VISITORS FRIDAY A HEAVY ONE AND ALLOCATED STAFF ACCORDINGLY THE REALITY WAS THE REVERSE THE COMPANY STILL IS STRUGGLING TO FIND THE RIGHT LEVEL OF STAFFING AT A PARK WHERE THE NUMBER OF VISITORS PER DAY IN THE HIGH SEASON CAN BE 10 TIMES THE NUMBER IN THE LOW SEASON DISNEY ACCUSTOMED IN FLORIDA TO TELLING AN EMPLOYEE WE DON'T NEED YOU TODAY HAS CHAFED UNDER FRANCE'S INFLEXIBLE LABOR SCHEDULES THE HOTEL BREAKFAST DEBACLE WAS ANOTHER UNPLEASANT SURPRISE WE WERE TOLD THAT EUROPEANS DON'T TAKE BREAKFAST SO WE DOWNSIZED THE RESTAURANTS RECALLS ONE EXECUTIVE AND GUESS WHAT EVERYBODY SHOWED UP FOR BREAKFAST WE WERE TRYING TO SERVE 2500 BREAKFASTS IN A 350SEAT RESTAURANT AT SOME OF THE HOTELS THE LINES WERE HORRENDOUS AND THEY DIDN'T JUST WANT CROISSANTS AND COFFEE THEY WANTED BACON AND EGGS DISNEY REACTED QUICKLY HOWEVER WITH PREPACKAGED BREAKFASTS DELIVERED TO ROOMS AND SATELLITE LOCATIONS ANOTHER DEMAND FROM BUS DRIVERS WASN'T ANTICIPATED THE PARKING SPACE WAS MUCH TOO SMALL SAYS A FORMER EXECUTIVE WE BUILT RESTROOMS FOR 50 DRIVERS AND ON PEAK DAYS THERE WERE 2000 FROM IMPATIENT DRIVERS TO GRUMBLING BANKERS DISNEY STEPPED ON TOE AFTER EUROPEAN TOE FORMER DISNEY EXECUTIVES SHAKE THEIR HEADS WHEN THEY THINK ABOUT IT BECAUSE MUCH OF DISNEY'S ATTITUDE SPRANG THEY SAY FROM A RELENTLESS PURSUIT OF QUALITY THE SAME DRIVE FOR PERFECTION THAT HAS MADE THE COMPANY SO SUCCESSFUL 9403100013 940310 WHAT'S NEWS BUSINESS AND FINANCE THE US AND JAPAN TENTATIVELY SETTLED SEVERAL IMPORTANT ISSUES IN THEIR DISPUTE OVER CELLULAR PHONES AND THE TWO SIDES APPEAR HEADED TOWARD A COMPROMISE THAT WOULD AVERT US SANCTIONS AGAINST JAPANESE GOODS ALTHOUGH DIFFERENCES REMAIN AN ACCORD WOULD SIGNAL COMPROMISE AT A CRITICAL TIME IN RELATIONS BETWEEN THE US AND JAPAN AND WOULD BE A BOOST TO MOTOROLA'S EFFORT TO EXPAND IN JAPAN IT COULD HOWEVER HURT AT&T THE ECONOMY EXPANDED MODERATELY IN JANUARY AND FEBRUARY DESPITE THE CALIFORNIA EARTHQUAKE AND A BITTER WINTER THE FED SAID MOREOVER THE FED'S REGIONAL REPORT SUGGESTED THAT MANY MERCHANTS EXPECT SOLID SALES GROWTH IN THE COMING MONTHS RAYTHEON SAID IT WILL CONSOLIDATE OPERATIONS AND CUT AS MANY AS 4400 JOBS OR 7 OF ITS WORK FORCE IN THE NEXT TWO YEARS IN AN EFFORT TO CUT COSTS IN ITS DEFENSE AND COMMERCIAL UNITS THE HOUSE BANKING PANEL VOTED TO REMOVE THE REMAINING RESTRICTIONS ON BANKS' ABILITY TO FORM UNIFIED BRANCH NETWORKS ACROSS STATE LINES BROKERS WOULD BE BARRED FROM SELLING MOST MUNICIPAL BONDS UNLESS THE UNDERWRITERS GUARANTEED THAT THE ISSUERS WOULD FILE FINANCIAL STATEMENTS UNDER RULES PROPOSED BY THE SEC FLORIDA'S INSURANCE DEPARTMENT ACCUSED 87 SALES AGENTS FOR METROPOLITAN LIFE OF FRAUDULENT SALES PRACTICES THE ADMINISTRATIVE COMPLAINT IS ONE OF THE MOST SWEEPING ACTIONS EVER AGAINST A GROUP OF INSURANCE AGENTS SOME OF THE BIGGEST US COMPANIES ARE JOINING FORCES IN A WELLFINANCED PUSH FOR NEW LAWS TO CURB JURY AWARDS AND DISCOURAGE FRIVOLOUS LAWSUITS PACIFIC INVESTMENT MANAGEMENT AND THOMSON ADVISORY GROUP AGREED TO MERGE IN A MOVE THAT WOULD CREATE ONE OF THE LARGEST PUBLICLY TRADED MONEYMANAGEMENT FIRMS IN THE US A PROBE INTO GENERAL INSTRUMENT'S POWERFUL POSITION IN THE CABLETELEVISION EQUIPMENT MARKET BY JUSTICE OFFICIALS SPRANG IN LARGE PART FROM THE BITTER FEUD BETWEEN VIACOM'S SUMNER REDSTONE AND TCI'S JOHN MALONE AMERITECH PLANS TO FORM A JOINT VENTURE WITH A CANADIAN COMPANY TO ALLOW COMPUTER USERS TO GET ACCESS TO AN ARRAY OF COMPUTERIZED INFORMATION AT ALL LEVELS OF GOVERNMENT IBM GAVE ITS FORMER CHAIRMAN A SEVERANCE PAYMENT OF MORE THAN 3 MILLION IN CASH LAST YEAR PLUS SALARY PENSION STOCK OPTIONS AND BONUS GENERAL MOTORS LAUNCHED A CORPORATE ADVERTISING CAMPAIGN THAT HIGHLIGHTS HUMILITY AND ENTHUSIASM FOR THE CUSTOMER INSTEAD OF PRODUCTS GM AND A SMALL FIRM AGREED TO DEVELOP AN ELECTRIC CAR BATTERY WITH EXGM CHAIRMAN STEMPEL IN A KEY ROLE JENNY CRAIG'S CHIEF FINANCIAL OFFICER BECAME THE SECOND EXECUTIVE THIS MONTH TO RESIGN AFTER A SHORT TENURE AT THE OPERATOR OF WEIGHTLOSS CENTERS BONDS LEHMAN BROTHERS TREASURY INDEX 533349 UP 1754 COMMODITIES OIL 1418 A BARREL UP EIGHT CENTS DOW JONES FUTURES INDEX 14446 OFF 004 SPOT INDEX 13104 UP 058 DOLLAR 10580 YEN UP 043 17025 MARKS OFF 00118 9403100012 940310 ECONOMY CLINTON UNVEILS 13 BILLION PROPOSAL TO STREAMLINE NATION'S JOBLESS SYSTEM BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON UNVEILED HIS AMBITIOUS PROPOSAL TO STREAMLINE THE NATION'S UNEMPLOYMENT SYSTEM WHILE PROVIDING INCREASED JOBSEARCH SERVICES COUNSELING AND TRAINING TO THE JOBLESS THE PLAN PROJECTED TO COST MORE THAN 13 BILLION OVER FIVE YEARS NOW FACES DICEY PROSPECTS ON A CROWDED CAPITOL HILL CALENDAR WHILE THE BILL ALREADY HAS GARNERED MORE THAN 50 CONGRESSIONAL COSPONSORS NO REPUBLICAN HAS YET SIGNED ON AND SEVERAL HAD HARSH WORDS FOR THE PROGRAM OTHERS INCLUDING THE GENERAL ACCOUNTING OFFICE CONTEND IT DOESN'T GO FAR ENOUGH THE BILL CALLED THE REEMPLOYMENT ACT OF 1994 IS TARGETED LARGELY AT THE MIDDLE CLASS IT WOULD MERGE SIX FEDERAL TRAINING PROGRAMS NARROWLY AIMED AT SPECIFIC GROUPS OF UNEMPLOYED WORKERS RANGING FROM THOSE WHO LOST THEIR JOBS AS A RESULT OF INTERNATIONAL TRADE TO OTHERS HURT BY MILITARY RETRENCHMENT WORKERS WHO LOSE THEIR JOBS REGARDLESS OF THE REASON COULD COME TO A ONESTOP SHOPPING CENTER THAT WOULD ACT AS THE CENTRAL STARTING POINT FOR JOB SEARCHES FROM THERE THEY WOULD BE SORTED INTO WHETHER THEY ARE TEMPORARILY LAID OFF OR PERMANENTLY CUT THOSE WHO WERE PERMANENTLY LAID OFF WOULD BE ASSIGNED JOB COUNSELORS WHO COULD PROVIDE THEM WITH RESUMEWRITING AND CAREER ADVICE OR MIGHT RECOMMEND JOBTRAINING PROGRAMS WORKERS CHOOSING FEDERAL JOB TRAINING COULD RECEIVE UNEMPLOYMENT BENEFITS FOR UP TO 18 MONTHS WHILE THEY WERE ATTENDING THE TRAINING OTHERS WOULD RECEIVE ONLY THE REGULAR STATE BENEFITS OF UP TO SIX MONTHS ADMINISTRATION OFFICIALS VIEW THE PROGRAM AS A WAY TO BETTER PREPARE WORKERS FOR A CHANGED ECONOMY IN WHICH WORKERS MUST SHIFT CAREERS MORE OFTEN AND AREN'T WEDDED TO INDIVIDUAL COMPANIES OR JOBS THE CURRENT UNEMPLOYMENT SYSTEM IS DESIGNED FOR PEOPLE WHO WERE GETTING THEIR OLD JOBS BACK AFTER A TEMPORARY PLANT CLOSING MR CLINTON TOLD A GROUP OF BUSINESS LEADERS AND POLITICIANS AT THE WHITE HOUSE BUT HE SAID ABOUT THREEQUARTERS OF PEOPLE LOSING JOBS NOW ARE PERMANENTLY LAID OFF LABOR SECRETARY ROBERT REICH ALSO STRESSED THAT POINT THE OLD JOBS ARE NOT COMING BACK HE SAID THAT'S A REALITY AND WE HAVE TO ACCEPT IT THESE DAYS HE ARGUED WORKERS MUST RETRAIN TO REMAIN FLEXIBLE AND USEFUL THE BILL ALSO WOULD LET SOME UNEMPLOYED WORKERS RECEIVE PART OF THEIR JOBLESS BENEFITS UP FRONT TO START THEIR OWN BUSINESSES IN ADDITION STATES COULD SET UP PROGRAMS TO PROVIDE CASH REEMPLOYMENT BONUSES AS AN INCENTIVE TO WORKERS WHO FIND JOBS IN THE FIRST 12 WEEKS AFTER BECOMING UNEMPLOYED SOME BUSINESS LEADERS INSTANTLY BACKED THE PLAN WHICH IS EXPECTED TO COST 34 BILLION A YEAR WHEN FULLY IMPLEMENTED IT'S AN EXCELLENT START SAID LAWRENCE PERLMAN CHIEF EXECUTIVE OF CERIDIAN CORP AND HEAD OF THE BUSINESS ROUNDTABLE A GROUP OF LARGE COMPANIES BUT THE GAO CONGRESS'S INVESTIGATIVE ARM CRITICIZED THE PROPOSAL FOR ONLY MERGING SIX OF THE GOVERNMENT'S ROUGHLY 150 JOBTRAINING AND EDUCATION PROGRAMS THIS CONSOLIDATION NEEDS TO BE PART OF A LARGER RESTRUCTURING OF EMPLOYMENT TRAINING PROGRAMS SAID CLARENCE CRAWFORD ASSOCIATE DIRECTOR FOR EMPLOYMENT ISSUES AT THE GAO WHILE THE BILL WOULD MERGE ONLY SOME LABOR DEPARTMENT PROGRAMS HE CITED OTHERS SCATTERED AROUND THE AGRICULTURE HOUSING AND URBAN DEVELOPMENT EDUCATION AND LABOR DEPARTMENTS AS WELL AS OTHER FEDERAL AGENCIES THAT WOULD REMAIN INDEPENDENT SEN NANCY KASSEBAUM R KAN THE RANKING REPUBLICAN ON THE SENATE LABOR COMMITTEE WAS MORE HARSH SHE CALLED THE CLINTON PLAN ANOTHER COSTLY JOBTRAINING PROGRAM BASED ON QUESTIONABLE ASSUMPTIONS OF SUCCESS SHE ARGUED THE STARTING POINT ON ANY DISCUSSION ABOUT JOB TRAINING IS HOW TO COMPLETELY OVERHAUL THE CURRENT SYSTEM AND CREATE A NEW ONE THAT WORKS NOTHING LESS THE BILL COULD HAVE TROUBLE UNLESS PRESIDENT CLINTON WORKS HARD FOR IT IN CONGRESS ADMINISTRATION OFFICIALS NOTED THAT LIBERAL AND CONSERVATIVE DEMOCRATS AND MANY BUSINESS LEADERS BACK THE PLAN BUT WHILE MR REICH SUGGESTED THE BILL COULD PASS THIS SPRING OTHERS EXPRESSED DOUBT THAT IT COULD IN A YEAR THAT ALREADY WILL FEATURE LEGISLATION TO DEAL WITH HEALTHCARE REFORM CRIME AND WELFARE REFORM THIS IS A VERY COMPLICATED PIECE OF LEGISLATION SAID ANTHONY CARNEVALE WHO HEADS THE NATIONAL COMMISSION FOR EMPLOYMENT POLICY WHILE HE BACKS THE IDEA HE SAID THE REAL QUESTION IS WHERE DOES THIS END UP IN THE LEGISLATIVE QUEUE 9403100011 940310 BUSINESS BRIEF WILLIAMS COS TELEPHONE UNIT SIGNS ACCORD ON FIBEROPTIC LINE TO CUBA THE SUBSIDIARY WILTEL INTERNATIONAL INC SAID THE MEMORANDUM OF UNDERSTANDING WITH CUBA'S STATEOWNED TELEPHONE COMPANY WILL ALLOW WILTEL AND OTHER TELEPHONE COMPANIES TO ESTABLISH DIRECT HIGHQUALITY TELEPHONE LINKS BETWEEN THE US IN CUBA TERMS WEREN'T DISCLOSED CURRENTLY ONLY A FEW CIRCUITS ARE AVAILABLE BETWEEN THE TWO COUNTRIES WILTEL SAID THE PROJECT COMPLIES WITH STATE DEPARTMENT GUIDELINES THAT ENCOURAGE CULTURAL AND COMMUNICATIONS TIES BETWEEN THE US AND CUBA THE LINE WILL BE PLACED ACROSS THE STRAITS OF FLORIDA BETWEEN THE SOUTHERN TIP OF FLORIDA AND A POINT NEAR HAVANA ABOUT 100 MILES AWAY BESIDES TELECOMMUNICATIONS WILLIAMS BASED IN TULSA OKLA IS AN ENERGY COMPANY THAT OWNS AND OPERATES PIPELINES 9403100010 940310 WORLD MARKETS BOURSES DISAPPOINTED BY GERMAN RATE MOVE PRICES DROP IN LONDON FINISH MIXED IN TOKYO A WALL STREET JOURNAL NEWS ROUNDUP IN A DAY OF GENERALLY WEAK PERFORMANCES ON GLOBAL BOURSES MANY REACTED BADLY TO A STINGY CUT IN A GERMAN LENDING RATE AND TO BROAD WEAKNESS IN BONDS LONDON SHARES FELL FINISHING AT THE SESSION'S LOWS AS THE MARKET WAS UNSETTLED BY AN EARLY SELLOFF ON WALL STREET TOKYO STOCKS ENDED MIXED WEDNESDAY IN A QUIET SESSION DRIFTING LOWER THROUGH THE MORNING BUT RECOVERING IN A LATE FUTURESDRIVEN RALLY IN THE FINAL HALFHOUR WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11517 DOWN 043 REFLECTING LOWER ASIA/PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7385 UP 137 OR 19 WITH PIONEER HIBRED INTERNATIONAL OF THE US POSTING A 35 GAIN IN ITS LOCAL CURRENCY OTHER NONFERROUS METALS STOCKS TRAILED AT 10875 DOWN 216 OR 195 WITH ENERGY RESOURCES OF AUSTRALIA SLIDING 74 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SHED 177 POINTS TO 32467 WHICH WAS THE SESSION'S LOW DOWN FROM THE INTRADAY HIGH OF 32705 THE FT 30STOCK INDEX SLIPPED 60 POINTS TO 25530 VOLUME WAS 7302 MILLION SHARES COMPARED WITH 6779 MILLION SHARES A DAY EARLIER THE MARKET WAS FAIRLY STABLE FOR MOST OF THE DAY AS NAGGING CONCERNS ABOUT WORLD INTEREST RATES WERE OFFSET BY GENERALLY POSITIVE BRITISH CORPORATE NEWS DEPRESSING SENTIMENT WAS MANY INVESTORS' BELIEF THAT THE CURRENT ROUND OF EUROPEAN RATE REDUCTIONS IS FINISHED AND THAT THE US WILL BOOST ITS RATES DETERRING ECONOMIC IMPROVEMENTS THE MARKET ALSO WAS DISAPPOINTED BY A MEAGER CUT IN THE GERMAN BUNDESBANK'S REPO RATE THE CENTRAL BANK ALLOCATED FUNDS UNDER THIS WEEK'S SECURITIES REPURCHASE OPERATIONS AT 594 BARELY CHANGED FROM 597 LAST WEEK AND NOT ENOUGH TO INDICATE MORE KEY INTEREST RATES WILL FALL FURTHER NERVOUSNESS IN LONDON WAS LINKED TO PUBLICATION OF THE US FEDERAL RESERVE'S UPDATE ON THE ECONOMY IN A REPORT THAT WAS TO BE RELEASED AFTER THE BRITISH BOURSE CLOSED BUT STRATEGISTS THEORIZED THAT NEW YORK'S EARLY SLIDE WAS SPARKED BY CONCERNS ABOUT ECONOMIC WEAKNESS IN SOME US REGIONS IN FRANKFURT SHARES EASED AS THE MARKET CONTINUED TO LOOK FOR A SENSE OF DIRECTION THE DAX 30STOCK INDEX FELL 795 POINTS TO 211609 WITH DECLINERS OUTNUMBERING ADVANCERS 1911 IN QUIET TRADING IN PARIS DISAPPOINTMENT ABOUT THE GERMAN CENTRAL BANK'S SMALL REPO RATE CUT IN THE MORNING SET THE TONE FOR TRADING STOCKS WHICH FINISHED WITH BROAD DECLINES IN THE ABSENCE OF OTHER MARKETMOVING NEWS IN FRANCE THE BUNDESBANK MOVE ADDED TO GROWING MARKET SENTIMENT THAT THE FRENCH AND GERMAN CENTRAL BANKS WILL BE STINGY WITH THEIR RATE CUTS IN COMING WEEKS IN AMSTERDAM PRICES DROPPED PULLED DOWN BY SOFT BONDS AND A WEAKER START FOR NEW YORK STOCKS AS WELL AS SELLING ON THE OPTIONS EXCHANGE AND DISAPPOINTING DUTCH CORPORATE EARNINGS IN MILAN SHARES FELL TAKING THEIR CUE FROM THE POOR PERFORMANCE OF ITALIAN BOND FUTURES WHICH TOOK A BEATING BECAUSE OF THE TINY GERMAN RATE CUT IN MADRID STOCKS DRIFTED DOWN IN THIN TRADING IN RESPONSE TO WEAKNESS IN US AND EUROPEAN BOND MARKETS IN ZURICH THE MAIN INDEX SANK 15 ON STRONG FOREIGN SELLING OF BANKING AND INSURANCE ISSUES A DOWNTURN IN THE SWISS BOND MARKET FUTURESRELATED SELLING AND WALL STREET'S EARLY REVERSAL BUT IN STOCKHOLM EQUITIES MANAGED SMALL GAINS AS STRONG DEMAND FOR SOME BLUE CHIPS OFFSET SLUGGISH TRADING IN MOST OTHER ISSUES AND IN BRUSSELS SHARES FINISHED MIXED WITH DECLINES PREVENTED BY A BELGIAN CENTRAL BANK CUT IN ITS KEY RATE TO 615 FROM 625 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 8651 POINTS TUESDAY FELL 5921 TO 1983918 IN TRADING THURSDAY THE NIKKEI ROSE 11282 POINTS TO CLOSE THE MORNING SESSION AT 19952 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES COMPARED WITH 3048 MILLION SHARES A DAY EARLIER LOSERS SWAMPED GAINERS 615393 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1177 POINTS TUESDAY DROPPED 1083 TO 160549 MOST INVESTORS POSTPONED MAJOR MOVES AHEAD OF FRIDAY'S SPECIAL QUOTATION FOR THE SETTLEMENT OF MARCH STOCKINDEX FUTURES AND OPTIONS MUCH OF STOCKS' EARLY DECLINES WHICH TOOK THE NIKKEI TO A TRADING LOW OF 1966567 STEMMED FROM WORRIES ABOUT CONTINUED SELLING BY CORPORATIONS TO LOG PROFITS AHEAD OF JAPAN'S FISCAL YEAR END OF MARCH 31 SUCH SALES HAVE BEEN PARTICULARLY HEAVY BECAUSE OF THE BOND MARKET'S WEAKNESS WHICH MAKES PROFITS THERE SCARCER THAN IN THE STOCK MARKET ARBITRAGERS BOUGHT NIKKEI FUTURES IN THE LATE GOING NEAR THE END OF THE SESSION THE NIKKEI MARKED ITS INTRADAY HIGH OF 1989429 IN SYDNEY THE MARKET SLUMPED 11 GIVING UP ALMOST ALL OF THE PREVIOUS DAY'S GAINS THE SELLOFF WAS ATTRIBUTED TO A WEAKER AUSTRALIAN BOND MARKET WHICH FOLLOWED US BOND PRICES DOWN AS THE SYDNEY BOURSE RETURNED TO A PATTERN OF BEING DOMINATED BY OVERSEAS FACTORS AND RELATIVELY LOWER FOREIGN INVESTMENT IN HONG KONG ALSO FOLLOWING OTHER MARKETS DOWN SHARES SLIPPED IN EXTREMELY QUIET TRADING ENDING A STRING OF THREE INCREASES IN A ROW LACKING FRESH NEWS DEVELOPMENTS HONG KONG INVESTORS AWAITED ANY ACTION ON CHINA'S ECONOMY FROM THIS WEEK'S MEETING OF LEGISLATORS IN BEIJING IN SINGAPORE STOCKS FELL AMID PERSISTENTLY NEGATIVE SENTIMENT WITH INSTITUTIONAL INVESTORS SIDELINED AS THEY AWAITED MORE SIGNS FROM THE US ABOUT ITS ECONOMIC RECOVERY AMID WORRIES THAT INTEREST RATES COULD MOVE HIGHER IF INFLATIONARY PRESSURES EXPANDED IN MANILA PRICES PLUMMETED IN HEAVY TRADING AS SELLING PRESSURE SET IN ON A LACK OF MARKETMOVING NEWS IN SEOUL SHARES CLOSED LOWER FOR THE THIRD STRAIGHT DAY ON CONTINUED FEARS OF A LIQUIDITY DRAIN BY THE SOUTH KOREAN CENTRAL BANK IN WELLINGTON EQUITIES FELL MAINLY IN REACTION TO A RISE IN BONDMARKET YIELDS IN BANGKOK STOCKS FELL ON PROFITTAKING ESPECIALLY IN THE BANKING AND COMMUNICATIONS SECTORS BUT IN TAIPEI SHARES POSTED GAINS FOLLOWING A LATE RALLY FROM DEEP LOSSES PROMPTED BY PROFITTAKING IN PAPER AND TEXTILE SHARES IN MEXICO CITY STOCKS CONTINUED TO FALL LOSING 15 AS THE PESO FELL AGAINST THE US DOLLAR IN CURRENCY DEALINGS AND MEXICAN INTEREST RATES ROSE PROFITTAKING ALSO CONTRIBUTED TO THE DECLINES AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM FOKKER PLUNGED 1830 GUILDERS OR 12 TO 2090 GUILDERS 1085 THE AEROSPACE COMPANY POSTED A 1993 NET LOSS OF 460 MILLION GUILDERS 2388 MILLION COMPARED WITH YEAREARLIER NET INCOME OF 20 MILLION GUILDERS CITING LOWER SALES HIGHER FINANCING COSTS AND CHARGES RELATED TO DRASTIC RESTRUCTURING PROGRAMS FOKKER 51CONTROLLED BY DEUTSCHE AEROSPACE OF GERMANY NAMED A NEW CHAIRMAN AND ASKED LABOR UNIONS FOR FURTHER CONCESSIONS 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 9403100009 940310 CORRECTIONS & AMPLIFICATIONS THE COLORADO RIVER TOAD IS AN AMPHIBIAN A PAGEONE ARTICLE IN MONDAY'S EDITION INCORRECTLY CALLED THE TOAD A REPTILE CLINTON ADAMS JR IS A KANSAS CITY MO ATTORNEY AND SCHOOLBOARD CANDIDATE HIS NAME WAS MISSTATED IN AN ARTICLE ABOUT US SENATE HOPEFUL ALAN WHEAT THAT APPEARED IN YESTERDAY'S POLITICS & POLICY PAGE A ROBOTIC ARM MANIPULATED BY A SURGICAL ASSISTANT FROM A REMOTE LOCATION CONTROLLED A MINIATURE VIDEO CAMERA INSIDE A PATIENT'S ABDOMINAL CAVITY DURING A LAPAROSCOPIC GALL BLADDER OPERATION AT THE HOTELDIEU DE MONTREAL HOSPITAL IN CANADA THE ROBOTIC ARM REPLACED THE SURGICAL ASSISTANT IN THE OPERATING ROOM RATHER THAN THE SURGEON AS STATED IN AN ARTICLE FRIDAY BERKSHIRE HATHAWAY INC'S 1993 PERSHARE EARNINGS WERE 595 COMPARED WITH 355 A YEAR EARLIER OPERATING EARNINGS WERE 413 A SHARE UP FROM 303 A SHARE IN 1992 IN AN ARTICLE YESTERDAY THE FIGURES WERE OVERSTATED DELTA AIR LINES WILL CUT ITS FLIGHTS FROM DALLASFORT WORTH INTERNATIONAL AIRPORT BY 1/25TH OVER THE NEXT TWO MONTHS YESTERDAY'S TEXAS JOURNAL INCORRECTLY STATED THE DECLINE AS 1/6TH WHICH IN FACT IS THE AMOUNT DELTA'S DFW FLIGHTS WILL HAVE DECLINED SINCE THEIR PEAK IN FEBRUARY 1993 KIDDER PEABODY & CO HASN'T BEEN NAMED THE UNDERWRITER FOR ZENITH ELECTRONICS CORP'S SHELF OFFERING OF AS MANY AS FIVE MILLION COMMON SHARES YESTERDAY'S RECENT SEC FILINGS COLUMN INCORRECTLY REFERRED TO KIDDER AS THE UNDERWRITER 9403100008 940310 ECONOMY MANUFACTURING SPARKS GROWTH IN THE ECONOMY FED REVIEW OF EARLY 1994 SAYS MERCHANTS UPBEAT INFLATION OUTLOOK GOOD BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SPURRED BY INCREASED MANUFACTURING ACTIVITY THE US ECONOMY EXPANDED MODERATELY IN JANUARY AND FEBRUARY DESPITE THE CALIFORNIA EARTHQUAKE AND A BITTER WINTER THE FEDERAL RESERVE SAID IN ITS PERIODIC REGIONAL REPORT MOREOVER THE FED SAID ALMOST ALL DISTRICT REPORTS SUGGEST THAT MERCHANTS EXPECT SOLID SALES GROWTH IN COMING MONTHS THE INFLATION OUTLOOK WAS GOOD PRICES WERE SLIGHTLY HIGHER FOR BUILDING MATERIALS AND A FEW OTHER ITEMS BUT MANUFACTURED PRODUCTS AND CONSUMER GOODS ARE GENERALLY NOT EXPERIENCING UPWARD PRICE PRESSURE THE FED REPORTED THE NEWS SPARKED A REBOUND IN BOND PRICES AND PUSHED STOCKS MOSTLY HIGHER MANUFACTURING ACTIVITY SHOWED THE MOST STRENGTH DURING THE FIRST MONTHS OF 1994 WITH DEMAND PARTICULARLY STRONG IN AUTOMOBILES AND AUTO PARTS SALES OF DURABLE GOODS SUCH AS ELECTRONICS PRODUCTS AND HOME FURNISHINGS ALSO SHOWED STRONG GAINS THE FED SAID IN ITS REVIEW OF THE SIX WEEKS ENDED FEB 28 ALMOST ALL DISTRICTS REPORT PLANS TO EXPAND HIRING AND CONTINUE CAPITAL INVESTMENT BUT THE FED SAID STREAMLINING AND CAUTION CONTINUE TO TEMPER GAINS IN MANUFACTURING EMPLOYMENT MOTHER NATURE DID HURT SOME PARTS OF THE ECONOMY RETAILERS IN THE STORMSWEPT EAST SUFFERED SALES DECLINES OF AS MUCH AS 20 WHILE CONSUMER SPENDING CAME TO A NEAR STANDSTILL IN SOUTHERN CALIFORNIA FOLLOWING THE EARTHQUAKE THERE ALTHOUGH TWOTHIRDS OF RETAILERS REPORTED SALES WERE DOWN DUE TO THE WEATHER THE FED SAID MERCHANTS ARE OPTIMISTIC EXPECTING SALES TO INCREASE DURING THE FIRST HALF OF 1994 CONSTRUCTION WAS HAMPERED BY SNOWSTORMS WITH FIVE OF THE 12 DISTRICTS REPORTING DELAYS IN THE LOS ANGELES AREA HOWEVER JANUARY'S EARTHQUAKE INCREASED DEMAND FOR RESIDENTIAL AND FREEWAY REPAIR THIS ADDED DEMAND IS EXPECTED TO CONTINUE THROUGH 1995 THE FED REPORTED THAT LOW INTEREST RATES CONTRIBUTED TO STRONG RESIDENTIAL SALES IN MOST OF THE COUNTRY BUT THE CLEVELAND AND CHICAGO DISTRICTS EXPRESSED CONCERN THAT THE STRENGTH WOULD BE SHORTLIVED SOME DISTRICTS POSTED MODEST COMMERCIAL RENT INCREASES BUT DEMAND FOR OFFICE SPACE IS STILL SLUGGISH SCATTERED COMMENTS ON SERVICE INDUSTRIES GENERALLY SUGGEST IMPROVEMENTS IN ECONOMIC ACTIVITY THE FED REPORTED OVERALL LOAN DEMAND WAS MIXED WITH SUCH DISTRICTS AS KANSAS CITY MO AND DALLAS SHOWING AN INCREASE WHILE THE NEW YORK AND PHILADELPHIA DISTRICTS POSTED DECLINES IN LOAN APPLICATIONS THE WEATHER HAS STUNTED THE WINTER WHEAT CROP AND INCREASED THE NEED FOR SUPPLEMENTAL FEEDING LEADING TO RISING HAY AND FEED GRAIN PRICES SOME REGIONS REPORT AN EXPECTATION OF A DECLINE IN FARM INCOMES DUE TO A REDUCTION OF LIVESTOCK INVENTORIES THE FRIGID WEATHER CAUSED A FLURRY OF ACTIVITY IN THE ENERGY INDUSTRY IN THE DALLAS AND KANSAS CITY DISTRICTS ACCORDING TO THE FED BUT IN THOSE SAME DISTRICTS OIL EXPLORATION FELL GLUTTING THE MARKET AND KEEPING A LID ON CRUDE PRICES HERE IS A SUMMARY OF THE REPORT BY THE 12 FEDERAL RESERVE DISTRICT BANKS BOSTON SNOWSTORMS KEPT CONSUMERS AWAY FROM JANUARY PROMOTIONS LEAVING RETAILERS WITH LARGER THAN EXPECTED INVENTORIES AND HAS DELAYED SPRING HOUSING STARTS SELLING PRICES OF AUTOS AND RAW MATERIALS ARE FLAT TO DOWN OVER ONETHIRD OF THE REGION'S CONTACTS REPORTED A REDUCTION IN THEIR WORK FORCES AND AN EXPECTATION OF CONTINUED CUTBACKS TO REDUCE COSTS INVESTMENT MANAGEMENT COMPANIES SHOWED STRONG GROWTH WITH AS MUCH AS A 50 INCREASE IN ASSETS UNDER MANAGEMENT COMPARED WITH JANUARY 1993 NEW YORK RETAILING SAILS SNAPPED BACK IN EARLY FEBRUARY WHEN PRACTICAL ITEMS SUCH AS OUTERWEAR HOME FURNISHINGS AND ELECTRONICS WERE BESTSELLERS ALTHOUGH THE DISTRICT NOTED AN IMPROVEMENT FOR RENTAL HOUSING IN NEW YORK CITY VACANCY RATES IN DOWNTOWN MANHATTAN AND WESTCHESTER COUNTY ROSE BECAUSE OF CONTINUED DOWNSIZING AND MERGING OF COMPANIES DESPITE CONTINUING CUTBACKS BOTH NEW JERSEY AND NEW YORK HAVE BEEN ABLE TO INCREASE PAYROLL EMPLOYMENT PHILADELPHIA CONSTRUCTION RETAIL AND MANUFACTURING ACTIVITY WERE ALL HAMPERED BY WINTER STORMS BUT ARE EXPECTED TO RECOVER AND RECOUP LOSSES WITH WARMER WEATHER BANKERS EXPECT CONSUMER LENDING TO RISE AS THE POSTCHRISTMAS PAYOFF PERIOD ENDS AND SPENDING PICKS UP AGAIN HOME SALES IN THE REGION WERE OFF SUBSTANTIALLY FROM 1993 AND INVENTORY OF HOMES FOR SALE WHILE DOWN FROM LAST YEAR IS STILL HIGH CLEVELAND THE DISTRICT REPORTS GENERALLY OPTIMISTIC ECONOMIC ACTIVITY AND EXPECTS A CONTINUING SOLID EXPANSION WITH A SIGNIFICANT CONTRIBUTION FROM AUTO PRODUCTION HOUSING MARKETS ARE EXPECTED TO CONTINUE TO BE STRONG THROUGHOUT 1994 RICHMOND THE COLD WEATHER AFFECTED FARMING ONLY SLIGHTLY AND BOOSTED BUSINESS IN SKI AND BEACH RESORTS REVENUES EMPLOYMENT INVENTORIES AND SHOPPER TRAFFIC DECLINED WHILE WAGES AND SALES OF BIGTICKET ITEMS WERE STEADY IN MANUFACTURING SHIPMENTS NEW ORDERS AND ORDER BACKLOGS INCREASED THE PORTS OF BALTIMORE AND CHARLESTON EXPECT EXPORTS TO OUTPACE IMPORTS DURING THE NEXT SIX MONTHS LOAN ACTIVITY IN THE AREA HAS SHIFTED FROM BUSINESS REFINANCING TO BUSINESS EXPANSION ATLANTA THERE ARE SPORADIC REPORTS OF SUPPLY CONSTRAINTS SLOWING SALES ESPECIALLY FOR SOME MAKERS OF TRUCKS AND SPORTSUTILITY VEHICLES REGIONAL ENERGY COMPANIES ARE BEING HURT BY LOWER OIL PRICES AND STRICTER ENVIRONMENTAL POLICIES DEMAND REMAINS STRONGEST FOR NEW HOMES BUT VACANCY RATES ARE GRADUALLY DECLINING CHICAGO UNEMPLOYMENT RATES CLOSED OUT 1993 CLOSE TO THEIR LOWEST LEVELS SINCE 1977 AND HIRING PLANS ROSE SIGNIFICANTLY IN EARLY 1994 AUTO INDUSTRY MOMENTUM REMAINED POSITIVE SUPPLIERS SAY FOREIGNOWNED AUTO PLANTS REPORT SHARPLY HIGHER PLANS FOR BUYING DOMESTIC PARTS CONSUMER SPENDING WAS AFFECTED FOR ONLY A FEW DAYS BY THE WEATHER ST LOUIS A BACKLOG OF CONSTRUCTION ORDERS FROM WET WEATHER IN 1993 IS BEGINNING TO BE FILLED BANKERS EXPECT A MODERATE INCREASE IN LOAN DEMAND FROM BOTH RETAIL AND COMMERCIAL CUSTOMERS A NUMBER OF INDUSTRIES CONTINUE TO EXPAND SUCH AS THE REGION'S POULTRY INDUSTRY MINNEAPOLIS CONSUMER CONFIDENCE IN MINNESOTA IS AT A FIVEYEAR HIGH AND RETAIL SPENDING THROUGHOUT THE DISTRICT IS REPORTEDLY VIGOROUS ESPECIALLY FOR LIGHT CARS AND TRUCKS RECENT COLD SPELLS DID NOT ABNORMALLY REDUCE ECONOMIC ACTIVITY THE FED SAID MANUFACTURING SALES ARE STRONG IN AGRICULTURE PLANTINGS ARE EXPECTED TO INCREASE FROM 1993 AND LIVESTOCK NUMBERS REMAIN HIGH KANSAS CITY RETAIL SALES ARE INCREASING ALTHOUGH SOME BUSINESSES SAY THEIR INVENTORIES ARE TOO HIGH THE COLD WEATHER HELPED TO BOOST NATURAL GAS PRICES BUT OIL DRILLING ACTIVITY IN THE DISTRICT SLIPPED DRAGGING DOWN THE ENERGY SECTOR THE STUNTED WINTER WHEAT CROP WILL NEED ADEQUATE RAINFALL FOR THE REST OF THE GROWING SEASON TO ENSURE AN ADEQUATE SUPPLY THIS SUMMER DALLAS PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT HEIGHTENED TALK OF INCREASED TRADE OPPORTUNITIES AUTO SALES WERE APPEARING TO SLOW DOWN IN FEBRUARY AFTER AN INCREASE IN JANUARY BOTH APARTMENT OCCUPANCY RATES AND RENTS ARE RISING MARKETS ARE ESPECIALLY TIGHT IN SAN ANTONIO AND AUSTIN REAL ESTATE WAS THE PRIMARY REASON FOR INCREASED LOAN DEMAND IN SOUTH TEXAS AND HOUSTON SAN FRANCISCO CALIFORNIA PARTICULARLY THE LOS ANGELES AREA CONTINUES TO LAG BEHIND THE NATIONAL ECONOMY BUT MUCH OF THE REST OF THE NINESTATE DISTRICT SHOWED SIGNS OF SOLID GROWTH TOURISM REMAINS SLUGGISH IN HAWAII BUT INCREASED ADVANCE BOOKINGS HAVE LED TO EXPECTATIONS FOR IMPROVEMENT DURING THE COMING MONTHS MANUFACTURING ACTIVITY IS MIXED WITH WEAKNESSES REPORTED IN AEROSPACE DEFENSE AND WOOD INDUSTRIES SALES AND PRODUCTION LEVELS IN THE COMPUTER INDUSTRY HAVE IMPROVED FROM LAST YEAR 9403100007 940310 BUSINESS BRIEF MITSUBISHI MOTORS CORP US UNIT INCREASES PRICES ON VEHICLES BY ABOUT 17 MITSUBISHI MOTORS SALES OF AMERICA INC SAID IT RAISED PRICES ON ITS VEHICLES BY AN AVERAGE OF 233 OR 17 THE BIGGEST INCREASE CAME ON THE MIDSIZED GALANT SEDAN WHICH NOW CARRIES A BASE PRICE OF 13600 UP 598 OR 34 FROM THE PREVIOUS PRICE MITSUBISHI'S ENTRYLEVEL MODEL THE MIRAGE COUPE NOW COSTS 9179 UP 211 OR 21 PERCENTAGES ARE BASED ON A SALESWEIGHTED AVERAGE WHICH FACTORS IN NEW EQUIPMENT AND IMPROVEMENTS MITSUBISHI IN CYPRESS CALIF A UNIT OF JAPAN'S MITSUBISHI MOTORS CORP SAID IT RAISED PRICES TO ACCOMMODATE AN INCREASE IN OUR OPERATING COSTS DUE TO THE RISING VALUE OF THE YEN SAID RICHARD D RECCHIA MITSUBISHI'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9403100006 940310 SCARING CAPITAL AWAY BY ALAN REYNOLDS SECRETARY OF STATE WARREN CHRISTOPHER IS IN JAPAN TODAY CHARGED WITH THE TASK OF GETTING TOUGH ABOUT TRADE IF THE JAPANESE GOVERNMENT DOES NOT PRETEND TO COMPLY WITH THE LITERALLY IMPOSSIBLE DEMANDS OF THE US THE ADMINISTRATION THREATENS TO RAISE TARIFFS TO INFLATE THE COST OF JAPANESE GOODS TO AMERICAN CONSUMERS AND BUSINESSES THUS LOWERING OUR REAL INCOMES THIS SORT OF SADOMASOCHISTIC TRADE POLICY IS NOTHING NEW OF COURSE PRESIDENT NIXON GOT EVEN TOUGHER ON AUG 15 1971 SLAPPING A 10 TARIFF ON JAPANESE IMPORTS AND THEN DEEPLY DEVALUING THE DOLLAR PRESIDENT REAGAN AND CONGRESS GOT TOUGH WITH BOTH GERMANY AND JAPAN IN THE SUMMER OF 1987 SHOVING THE DOLLAR DOWN AND THE BOND YIELD UP AND PRESIDENT HOOVER GOT TOUGH WITH THE WHOLE WORLD IN 1929 IN EACH OF THOSE PREVIOUS EXPERIENCES WITH TRADE WARFARE THERE WAS NO VISIBLE INCREASE IN US EXPORTS BUT THE IMPACT ON WORLD FINANCIAL MARKETS WAS SWIFT AND DECIDEDLY UNPLEASANT THIS TIME HAS BEEN NO DIFFERENT WHAT THE ADMINISTRATION IS HOPING TO ACCOMPLISH IS CLEARLY SPELLED OUT IN THE 1994 ECONOMIC REPORT OF THE PRESIDENT AS FOLLOWS IF JAPAN WERE TO ELIMINATE ALL FORMAL AND INFORMAL BARRIERS TO TRADE US EXPORTS TO JAPAN WOULD INITIALLY INCREASE BY SOMEWHERE IN THE RANGE OF 9 BILLION TO 18 BILLION A YEAR IT SHOULD BE MADE CLEAR HOWEVER THAT EVEN IF THESE BARRIERS WERE ELIMINATED THE BILATERAL BALANCE WOULD NOT CHANGE BY THIS FULL AMOUNT JAPANESE IMPORTS WOULD INCREASE INITIALLY BUT THE RESULTANT DEPRECIATION OF THE YEN WOULD BOOST JAPANESE EXPORTS AND REDUCE JAPANESE IMPORTS AT LEAST PARTLY OFFSETTING THE INITIAL CHANGE IN THE BALANCE NO COUNTRY LEAST OF ALL THE US IS EVER GOING TO ELIMINATE ALL FORMAL AND INFORMAL BARRIERS TO TRADE BUT EVEN IF JAPAN DID THAT THE PRESIDENT'S OWN ADVISERS SAY THAT WOULD HAVE ONLY A RATHER SMALL AND TEMPORARY EFFECT ON THE BILATERAL TRADE BALANCE WITH THE US MOST IMPORTANT THE LOGIC OF THE COUNCIL OF ECONOMIC ADVISERS CLEARLY SHOWS THAT IF THE MARKETS REALLY BELIEVED THAT US TRADE WARFARE WOULD INCREASE JAPAN'S IMPORTS THEN THE YEN SHOULD HAVE FALLEN INSTEAD THE DOLLAR FELL TO ABOUT 103 YEN FROM ABOUT 109 YEN AS SOON AS THE ADMINISTRATION BEGAN THIS BATTLE THE GRAPH SHOWS THAT WHENEVER THE MARKET HAS EXPECTED THE YEN TO RISE AGAINST THE DOLLAR LONGTERM INTEREST RATES FALL IN JAPAN AT THE SAME TIME INTEREST RATES USUALLY RISE IN THE US OR AT LEAST DO NOT FALL AS MUCH AS THE GENERAL WORLD TREND THIS LOWERS THE RELATIVE COST OF CAPITAL IN JAPAN AND RAISES IT IN THE US PROTECTIONISM ALWAYS MAKES THE US A LESS ATTRACTIVE PLACE TO INVEST AND THAT MAKES IT HARDER TO FINANCE THE US CURRENT ACCOUNT DEFICIT LONGTERM CAPITAL FLEES THE US STOCK AND BOND MARKETS REQUIRING HIGHER SHORTTERM INTEREST RATES TO OFFSET THE LOSS CLEARLY THE ADMINISTRATION'S CURRENT TRADE BATTLE HAS BEEN SCARING WORLD CAPITAL OUT OF THE US IN EARLY FEBRUARY THE EUROPEAN PRESS WAS ALREADY REPORTING A BIG SURGE OF JAPANESE INVESTMENT IN EUROPEAN BONDS GUESS WHOSE BONDS THEY WERE SELLING EUROPE BECAME A RELATIVELY SAFE HAVEN ALTHOUGH ALL MAJOR BOND MARKETS SUFFERED FROM A FLIGHT TO LIQUIDITY BROUGHT ON BY TRADE THREATS THE DOLLAR'S WEAKNESS AT LEAST GAVE MANY EUROPEAN CENTRAL BANKS AN OPPORTUNITY TO LOWER INTEREST RATES THE WEEK AFTER FEB 11 WHEN THE TRADE TALKS WERE TOTALLY SCUTTLED THE EXODUS FROM DOLLAR BONDS ACCELERATED THE ADMINISTRATION INSISTS THAT JAPAN DO SOMETHING THAT NO GOVERNMENT COULD POSSIBLE DO NAMELY GUARANTEE THAT THE PRIVATE CONSUMERS AND BUSINESSES OF JAPAN WILL BUY SPECIFIC AMOUNTS OF CERTAIN POLITICALLY FAVORED US PRODUCTS JAPAN'S INDEX OF INDUSTRIAL PRODUCTION FELL BY 112 BETWEEN THE THIRD QUARTERS OF 1991 AND 1993 AND BY THIS JANUARY IT WAS STILL DOWN 34 FROM A YEAR EARLIER THE JAPANESE WHO HAVE SEEN THEIR OUTPUT INCOMES AND ASSETS DECLINE FOR TWO YEARS OR MORE HAVE BEEN IN NO POSITION TO BUY MUCH AT HOME OR ABROAD SHOVING THE DOLLAR DOWN AGAINST THE YEN ULTIMATELY HAS TO BE DEFLATIONARY FOR JAPAN INFLATIONARY FOR THE US OR A LITTLE OF EACH SO FAR IT HAS MOSTLY BEEN DEFLATIONARY IN JAPAN WHERE PRODUCER PRICES HAVE BEEN FALLING BUT THE SITUATION WILL BE QUITE DIFFERENT NOW THAT JAPAN IS CUTTING TAX RATES IN MARKED CONTRAST TO THE PERIOD SINCE 198889 WHEN JAPAN WAS PILING ON NEW TAXES ON SAVINGS SALES AND SECURITIES NO COUNTRY HAS EVER CUT TAX RATES BY 20 WITHOUT EXPERIENCING A BIG ECONOMIC BOOST ALMOST REGARDLESS OF THE EXCHANGE RATE JUST LOOK HOW STRONG THE US ECONOMY WAS IN THE EARLY '80S DESPITE THE FED'S 10 TO 12 INTEREST RATES AND THE RESULTING SOARING DOLLAR COMMODITIES PRICED IN DOLLARS BECOME CHEAPER IN JAPAN WHEN THE YEN GOES UP ONCE JAPAN'S ECONOMY GETS MOVING SUCH BARGAINS MUST RAISE JAPANESE DEMAND FOR RAW MATERIALS AND THUS BID UP THEIR PRICES IN DOLLARS SO JAPAN ENDS THIS ROUND OF TRADE WAR WITH CHEAPER RAW MATERIALS AND RELATIVELY CHEAPER CREDIT WHILE THE US GETS THE OPPOSITE FROM SEPTEMBER 1992 TO DECEMBER 1993 THE YIELD ON 10YEAR US BONDS DECLINED FROM 641 TO 574 OR 67 BASIS POINTS THE YIELD ON COMPARABLE JAPANESE BONDS DROPPED FROM 499 TO 325 OR 174 BASIS POINTS PRESIDENT CLINTON TRIES VERY HARD TO TAKE CREDIT FOR LAST YEAR'S DROP IN US LONGTERM INTEREST RATES BUT THE DROP IN NEARLY ALL FOREIGN BOND YIELDS WAS FAR DEEPER THAN IN THE US BY THIS WEEK JAPAN'S 10YEAR BONDS WERE YIELDING ABOUT 4 COMPARED WITH OVER 625 FOR THE US AND THE YIELD ON 30YEAR US BONDS HAS NOW JUMPED BY A FULL PERCENTAGE POINT SINCE MIDOCTOBER WHICH IS QUITE HARD TO BLAME ON A RECENT QUARTERPOINT BOOST IN THE FEDERALFUNDS RATE WHAT THE CLINTON ADMINISTRATION REALLY DOES DESERVE CREDIT FOR IS THE DEEP DROP IN JAPANESE BOND YIELDS LAST YEAR AS THE ADMINISTRATION TALKED THE DOLLAR DOWN AND THE ADMINISTRATION ALSO DESERVES CONSIDERABLE CREDIT FOR THE WORLDWIDE FLIGHT FROM BONDS PARTICULARLY US BONDS SINCE THE LATEST TRADE SKIRMISH BEGAN MR REYNOLDS IS DIRECTOR OF ECONOMIC RESEARCH AT THE HUDSON INSTITUTE IN INDIANAPOLIS 9403100005 940310 POLITICS & PEOPLE MAKING BOOK ON THE GOP RACE IN 1996 BY ALBERT R HUNT THE NEW HAMPSHIRE PRIMARY IS ONLY 700 DAYS AWAY THAT MEANS THAT THE 1996 PRESIDENTIAL CONTEST IS UNDER WAY ESPECIALLY FOR THE TRADITIONBOUND REPUBLICANS IN MODERN PRESIDENTIAL ELECTIONS THE GOP FRONTRUNNER A YEAR BEFORE NEW HAMPSHIRE INVARIABLY HAS WON THE NOMINATION THIS YEAR WILL DETERMINE WHICH ASPIRANT GETS THAT INSIDE POSITION FOR 1996 WITH CALIFORNIA MOVING ITS PRIMARY NEXT TIME FROM JUNE TO MARCH 26 MORE THAN 80 OF THE GOP DELEGATES WILL BE CHOSEN BY THE END OF MARCH THIS FRONTLOADED PROCESS PLACES A GREATER PREMIUM ON A FAST START AND THE ABILITY TO RAISE MONEY IT MAY BE NECESSARY TO RAISE AS MUCH AS 30 MILLION IN THE 1996 PRIMARIES WITH THAT BACKDROP HERE'S THE EARLY LINE JACK KEMP THE EXBUFFALO CONGRESSMAN IS A FAVORITE OF THE CONSERVATIVE RANK AND FILE AND DOMINATES THE ECONOMIC GROWTH AND EQUAL OPPORTUNITIES ISSUES BROADENING HIS APPEAL HE'S THE ONLY CANDIDATE WITH THE RONALD REAGANLIKE POTENTIAL TO EXPAND THE GOP BASE IN A GENERAL ELECTION THE ENERGETIC FORMER QUARTERBACK MAY MATCH UP AGAINST BILL CLINTON BETTER THAN THE OTHERS A KEMP DRAWBACK SOME CONSERVATIVE ACTIVISTS COMPLAIN IS THAT HE LACKS A HARD EDGE HIS MESSAGE IS HOPE NOT HATE HIS CONSERVATIVE BASE ISN'T THAT SECURE AND HIS MESSAGE IS TOO NARROWLY ECONOMIC MOST IMPORTANT HOWEVER IS AN OMNIPRESENT LACK OF DISCIPLINE A FATAL FLAW IN HIS 1988 PRESIDENTIAL QUEST EVEN SOME ADMIRERS DOUBT HE'S LEARNED FROM THAT EXPERIENCE THE ODDS 3TO1 BOB DOLE THE FRONTRUNNER IN THE CURRENT POLLS WITH 29 IN THIS WEEK'S WALL STREET JOURNAL/NBC NEWS SURVEY THE KANSAS REPUBLICAN IS EXPECTED TO DOMINATE POLITICS THIS YEAR AS HE CUTS INTO BILL CLINTON AT EVERY OPPORTUNITY THIS SKILLFUL AND POWERFUL LEGISLATOR WILL USE THIS CLOUT TO RAISE SUFFICIENT FUNDS THE DOWNSIDE IS THAT BOB DOLE WHO'LL BE 73 IN 1996 IS A MUCH BETTER INDOOR OR LEGISLATIVE POLITICIAN THAN HE IS OUTDOOR CANDIDATE HIS SHARP HUMOR THAT DELIGHTS WASHINGTON INSIDERS BECOMES MEANSPIRITED OUTSIDE THE BELTWAY AND HE HAS A REMARKABLE PENCHANT FOR NOT LISTENING TO GOOD ADVICE WHILE HEEDING THOSE HE SHOULD IGNORE THIS HASN'T CHANGED CURRENTLY FOR EXAMPLE HE'S SCHEMING WITH SELFPROMOTER JUDE WANNISKI A FALLEN AWAY KEMP CONFIDANT TO BECOME THE CANDIDATE OF THE SUPPLYSIDERS DESPITE HIS RECORD THE ODDS 7TO2 DICK CHENEY THIS IS THE CONSUMMATE REMAINDERMAN HE'S THE SECOND OR THIRD CHOICE OF ALMOST EVERYONE IF REPUBLICAN POLITICIANS PRIVATELY PICKED WHO IN THE FIELD THEY THOUGHT WOULD BE THE BEST PRESIDENT THE FORMER DEFENSE CHIEF WOULD WIN HANDILY ALSO IF MR CLINTON CONTINUES TO STUMBLE ON FOREIGN POLICY MR CHENEY WOULD BE BEST POSITIONED TO TAKE ADVANTAGE OF THAT WEAKNESS BUT HE'S NEVER RUN OUTSIDE WYOMING HAS HAD THREE HEART ATTACKS AND ISN'T VERY CAPTIVATING ON THE STUMP A RECENT MAJOR SPEECH TO THE AMERICAN ENTERPRISE INSTITUTE BOMBED AND ECONOMICS NOT FOREIGN POLICY IS MORE LIKELY TO DOMINATE THE NEXT PRESIDENTIAL ELECTION THE ODDS 5TO1 PHIL GRAMM THE TEXAS SENATOR IS THE MOST DISCIPLINED POLITICIAN IN THE FIELD HE'S TOUGHMINDED AND VERY WELLVERSED IN ECONOMICS WITH A WEALTHY BASE THE DEMOCRATTURNEDREPUBLICAN IS A PHENOMENAL FUNDRAISER HE ALREADY HAS AN IMPRESSIVE 72 MILLION ON HAND BUT PHIL GRAMM IS UNLIKELY TO WEAR WELL HE HAS ALL THE WARMTH OF A TONYA HARDING BODYGUARD AND HE'S NOT THE CANDIDATE TO TAKE ADVANTAGE OF WHITEWATER OR ETHICS ISSUES SEVERAL YEARS AGO A SHADY TEXAS S&L OPERATOR WHO COST TAXPAYERS 200 MILLION ABSORBED 53000 OF THE TAB ON THE GRAMMS' MARYLAND VACATION HOME THE ODDS 10TO1 PETE WILSON THE GOVERNOR OF THE NATION'S MOST POPULOUS STATE IS TRYING TO RIDE AN ANTIIMMIGRATION AND ANTICRIME WAVE TO AN UPSET REELECTION IF SUCCESSFUL HE COULD BE FORMIDABLE IN THE EARLY CALIFORNIA PRIMARY THIS WEEK HE INSISTED HE WOULDN'T RUN IN 1996 BUT IF HE WINS REELECTION SOME CALIFORNIA OBSERVERS SUSPECT HE'LL FORGET THAT PLEDGE BY THIS TIME NEXT YEAR HOWEVER HE MAY BE EXGOV WILSON ESPECIALLY IF HE RUNS AGAINST CALIFORNIA TREASURER KATHLEEN BROWN HE'S ALSO A PEDESTRIAN CAMPAIGNER AND BY MOST ACCOUNTS HAS BEEN A MEDIOCRE GOVERNOR THE ODDS 15TO1 DAN QUAYLE SOME INDIANA ASSOCIATES SAY THE FORMER VICE PRESIDENT IS LEANING TOWARD RUNNING HE THINKS HE'S AS GOOD AS ANYONE ELSE IN THE FIELD HAS BEEN VINDICATED ON HIS FAMILYVALUES MURPHY BROWN FLAP AND IS COUNTING ON FAVORABLE PUBLICITY FROM A SOONTOBE PUBLISHED VICE PRESIDENTIAL MEMOIR FEW REPUBLICAN PROFESSIONALS SHARE THIS ASSESSMENT THEY AREN'T SURE IF HIS REPUTATION EVER CAN BE REHABILITATED BUT 1996 CLEARLY WOULD BE PREMATURE BETTER THEY SAY TO RUN FOR INDIANA GOVERNOR FIRST THE ODDS 15TO1 PAT BUCHANAN THE CAPITAL PUNDIT AND UNSUCCESSFUL BUSH CHALLENGER MAY RUN AGAIN HE'S THE MOST ARTICULATE ADVOCATE OF RADICAL CHANGE AND HAS THE MOST COMMITTED CORE CONSTITUENCY HE'S THE MOST COMFORTABLE WITH SOCIAL ISSUES AND RIGHTWING POPULIST ONES LIKE TERM LIMITS BUT PAT BUCHANAN IS A DEEPLY POLARIZING FIGURE AN ANATHEMA TO CONSERVATIVE TRADITIONALISTS BOTH ON ECONOMICS HE'S A PROTECTIONIST AND ON FOREIGN POLICY HE'S AN ISOLATIONIST MOREOVER PAT BUCHANAN'S FAVORITE SOCIAL ISSUES MAY BE RECEDING IN POLITICAL IMPORTANCE THE ODDS 20TO1 LONG SHOTS THE MOST FASCINATING AND OFTSPECULATED LONG SHOTS ARE COLIN POWELL AND JIM BAKER DON'T COUNT ON EITHER ONE ENTERING THE FRAY AND NOTHING WILL BE HANDED TO THEM OF THE OTHER DARK HORSES THE TWO WITH THE BEST SHOT ARE LAMAR ALEXANDER FORMER EDUCATION SECRETARY AND SOUTH CAROLINA GOV CARROLL CAMPBELL THE ODDS ON ANY ONE 25TO1 OR MORE OVERALL IT'S WHAT ONE LEADING PARTY FIGURE CALLS THE GREAT SHRINKING FIELD THE ODDS ARE THAT WHITEWATER WON'T MUSHROOM INTO A MAJOR SCANDAL AND THE ECONOMY WILL LOOK PRETTY GOOD IN TWO YEARS GIVEN THE INCUMBENT'S CONSIDERABLE POLITICAL SKILLS 1996 WILL BE AN UPHILL BATTLE PRESIDENT CLINTON BEATS FRONTRUNNER BOB DOLE 48 TO 39 NOW BUT THERE'S A SILVER LINING FOR THE GOP THE FIELD IS BETTER AND THE ODDS ARE SHORTER THAN THOSE THE DEMOCRATS FACED AGAINST GEORGE BUSH ON THIS EXACT DATE FOUR YEARS AGO 9403100004 940310 ADVERTISING MADISON AVENUE PROFITS BY PICKING UP FALLEN IDOLS BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT REDEMPTION ADVERTISING A BUNCH OF LOSERS SPORTS FIGURES CELEBRITIES AND EVEN POLITICIANS WHO SUFFERED WELLPUBLICIZED CAREER SETBACKS OR EMBARRASSING INCIDENTS ARE POPPING UP IN ADVERTISING THE COMMERCIALS ARE USUALLY SELFDEPRECATING AND FOCUS ON THE INCIDENT THAT SET THE STAR'S CAREER SPIRALING DOWNWARD CHEVY CHASE WHO WAS BOOTED FROM HIS LATENIGHT TALK SHOW AFTER ONLY SIX WEEKS KATHLEEN SULLIVAN WHO WAS FIRED AS COHOST OF CBS THIS MORNING AND FORMER VICE PRESIDENT DAN QUAYLE WHO WAS THE SUBJECT OF ENDLESS RIDICULE ALL APPEAR IN ADS CALLING ATTENTION TO THEIR FLUBS THE LATEST EXAMPLE OF A LOSER SPOKESMAN IS BASKETBALL STAR CHRIS WEBBER IN AN AD SCHEDULED TO START AIRING MARCH 21 DURING A BASKETBALL GAME ON THE TBS CABLE NETWORK MR WEBBER A FORWARD FOR THE GOLDEN STATE WARRIORS POKES FUN AT A COSTLY MISTAKE HE MADE IN LAST YEAR'S NCAA CHAMPIONSHIP GAME BETWEEN THE UNIVERSITY OF MICHIGAN WOLVERINES AND THE NORTH CAROLINA TARHEELS MR WEBBER THEN A PLAYER AT MICHIGAN CALLED A TIMEOUT WHEN HIS TEAM DIDN'T HAVE ANY TIMEOUTS LEFT IN THE COMMERCIAL FOR LOGO 7 SPORTSWEAR MR WEBBER SPEAKS ONE LINE INTO THE CAMERA AND THEN WALKS OFF THE SET A BEFUDDLED DIRECTOR ENTERS THE FRAME AND INFORMS MR WEBBER HE STILL HAS A LOT OF TIME LEFT TO CONCLUDE THE SPOT MR WEBBER JUST SMILES AND SAYS HE ISN'T GETTING FOOLED BY ANY PRACTICAL JOKE MR WEBBER COULDN'T BE REACHED FOR COMMENT BUT TOM SHINE PRESIDENT OF LOGO 7 IN INDIANAPOLIS SAYS MR WEBBER WAS WILLING TO MAKE THE COMMERCIAL BECAUSE HE REALIZES ONE MISTAKE DOESN'T MAKE A CAREER WHEN WE PRESENTED HIM WITH THE IDEA HE WANTED TO DO IT INSTANTLY THERE WAS NO HESITATION THERE IS NO DOWNSIDE FOR US HE ADDS WE WANTED TO TAKE A LIABILITY AND TURN IT INTO AN ASSET INDEED MR WEBBER'S CAREER HAS BEEN REDEEMED HE IS A CONTENDER FOR THE NATIONAL BASKETBALL ASSOCIATION'S ROOKIE OF THE YEAR AWARD USING SOCALLED LOSERS IN ADS ISN'T NEW YEARS AGO AMERICAN EXPRESS USED WILLIAM E MILLER WHO RAN AS THE VICE PRESIDENTIAL RUNNING MATE OF SEN BARRY GOLDWATER IN 1964 ASKING DO YOU KNOW ME BUT NOT EVERYONE AGREES THAT THE STRATEGY IS WORTHWHILE ON THE ONE HAND MARKETING EXPERTS SAY IT ENABLES SOME PEOPLE TO IDENTIFY WITH HIGHLY PAID AND WELLKNOWN INDIVIDUALS WHO FLUBBED BUT SOME MARKETING GURUS QUESTION ASSOCIATING A PRODUCT WITH SOMEONE PERCEIVED AS INEFFECTUAL IN HIS OR HER JOB YOU HAVE TO ASSUME THAT CONSUMERS KNOW ENOUGH ABOUT THE MISTAKE TO MAKE THE COMMERCIAL MEANINGFUL SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES A MARKETING AND CONSULTING FIRM IN GUILFORD CONN THESE KINDS OF ADS ARE WEAK EXCUSES FOR NOT HAVING A STRONG CREATIVE PLATFORM BUT WHAT IF YOU'VE ALREADY HIRED THE SPOKESMAN WHEN HE BLOWS IT THAT'S WHAT HAPPENED WITH FRITOLAY AND MR CHASE WHO SUFFERED PERHAPS THE MOST HUMILIATING DOWNFALL WITH HIS LATENIGHT TALK SHOW ON FOX A UNIT OF NEWS CORP LAST SEPTEMBER THE SHOW AND HIS PERFORMANCE WERE A BLUEPRINT FOR FAILURE CRITICS SAID NOTING THAT THE STAR FAILED TO INTERACT EFFECTIVELY WITH HIS GUESTS AS MR CHASE'S TALK SHOW WAS FLAMING OUT EXECUTIVES AT PEPSICO'S FRITOLAY UNIT WERE HATCHING IDEAS ON HOW TO USE THE COMEDIAN WHO HAD APPEARED LAST AUGUST IN A COMMERCIAL FOR DORITOS TORTILLA THINS IN A SECOND AD IN THE SECOND COMMERCIAL WHICH WILL RUN ON TELEVISION THROUGH THIS MONTH MR CHASE GETS CANCELED AS AN ADVERTISING SPOKESMAN BY HOLLYWOOD EXECUTIVES WEARING SUNGLASSES AND CARRYING CHARTS SHOWING HIS POPULARITY PLUMMETING AS THE AD ENDS MR CHASE IS LEFT WITH A SINGLE CHIP TOUGH YEAR HE SAYS DEADPAN INTO THE CAMERA GOOD CHIP TOD MACKENZIE VICE PRESIDENT OF ADVERTISING AT FRITOLAY CONCEDES THAT THE FIRST THOUGHT THAT RAN THROUGH THE MINDS OF FRITO EXECUTIVES WAS THE RISK THAT WOULD BE ASSOCIATED WITH THE COMMERCIAL WE ALSO DIDN'T KNOW WHETHER ANYONE WOULD MAKE THE CONNECTION BETWEEN THE TALK SHOW WHICH WAS CANCELED IN OCTOBER AND LATE JANUARY WHEN THE SPOT PREMIERED IN THE SUPER BOWL MR CHASE WAS ENTHUSIASTIC ABOUT THE CONCEPT BUT PROCEEDED ONLY AFTER HE DID A REALITY CHECK WITH HIS FAMILY SAYS MR MACKENZIE HE GOT VALIDATION FROM THEM AND HE LOVED DOING THE SPOT IT WAS TURNING A NEGATIVE INTO A POSITIVE IT WAS A GREAT WAY TO COME BACK AFTER THE TALK SHOW CAROL M MORGAN PRESIDENT OF STRATEGIC DIRECTIONS GROUP A MINNEAPOLISBASED MARKETINGCONSULTING FIRM SAYS THE COMMERCIAL MAY HAVE BEEN EFFECTIVE THERAPY NOT ONLY FOR MR CHASE BUT FOR SOME VIEWERS AS WELL THE COMMERCIALS IDENTIFY WITH THE PART OF US THAT FEELS WE'RE NOT GOOD ENOUGH SHE SAYS IT'S GOOD STRATEGY IF DONE WITHOUT A HEAVY HAND THESE ARE FAMOUS PEOPLE WE KNOW THEM AND THEY SCREWED UP IN SOME WAY IT SHOWS NO ONE HAS TO BE PERFECT LIKE MR CHASE MR QUAYLE ALSO DIDN'T HESITATE TO PARTICIPATE IN AN AD FOR FRITOLAY'S WAVY LAY'S POTATO CHIPS MR QUAYLE ONCE ENCOURAGED A CHILD TO MISSPELL POTATO DURING A SCHOOL SPELLING BEE ALSO LIKE MR CHASE MR QUAYLE ASKED HIS FAMILY WHETHER MAKING THE SPOT WOULD BE A GOOD MOVE UNLIKE MR CHASE HOWEVER MR QUAYLE'S COMMERCIAL AIRED ONLY ONCE DURING THE SUPER BOWL YOU DO HAVE TO BE CAREFUL WHO YOU PITCH AN IDEA TO SAYS MR MACKENZIE YOU HAVE TO MAKE SURE THE PERSON HAS A THICK SKIN AND CAN TAKE THE JOKE MARKETING EXPERTS CAUTION FURTHER THAT THE COMMERCIALS SHOULD SHOW AN UPBEAT RESOLUTION YOU DON'T WANT THE PRODUCT'S USER TO BE DEPICTED AS A JERK AT THE END OF THE AD SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A PRINCETON NJ COMMUNICATIONSRESEARCH COMPANY BUT THERE ARE EXCEPTIONS TO THAT PEPSICOLA FOR EXAMPLE MAKES SURE IT CAPITALIZES ON THE FACT THAT RODNEY DANGERFIELD THE COMEDIAN WHOSE CLAIM TO FAME IS THAT HE DOESN'T GET ANY RESPECT COMES OFF AS A BUFFOON IN NEW ADS HE IS SHOWN WITH HIS BULGING EYES AND MAKING HIS TRADEMARK GESTURE OF GRABBING HIS NECKTIE WHILE THE VOICE OF SUPERMODEL CINDY CRAWFORD COMES OUT OF HIS MOUTH MR PERMUT OF MARKETING SCIENCES FOR ONE WOULD RATHER NOT SEE MR DANGERFIELD OR ANY OTHER CELEBRITY CAPITALIZING ON THE SOCALLED LOSER IMAGE SUCH SPOKESMEN DISTRACT ATTENTION FROM THE ADVERTISER'S MESSAGE HE SAYS ADVISING SAVE YOUR MONEY AND FOCUS ON GOOD CREATIVE STRATEGY AMERITECH THE MIDWEST BABY BELL TAPPED LEO BURNETT CHICAGO TO CREATE ADVERTISING FOR ITS CONSUMER TELEPHONE SERVICES A 40 MILLION ACCOUNT PREVIOUSLY HANDLED BY CHICAGO SHOP TATHAM EURO RSCG BURNETT WHICH CAME LATE TO THE PITCH BESTED THE INCUMBENT AND ANOTHER CHICAGO SHOP BAYER BESS VANDERWARKER STILL IN REVIEW IS AMERITECH'S MEDIA BUYING BUSINESS WITH BILLINGS OF 50 MILLION CURRENTLY HANDLED BY BAYER BESS SEPARATELY BURNETT ALSO WAS NAMED THE AD AGENCY FOR HEALTHY CHOICE FROM KELLOGG A READYTOEAT CEREAL PRODUCED UNDER A LICENSING AGREEMENT ANNOUNCED YESTERDAY BETWEEN KELLOGG AND CONAGRA BILLINGS COULDN'T BE DETERMINED REVIEW JM SMUCKER CO OF ORRVILLE OHIO SAID IT HAS PUT INTO REVIEW ITS ESTIMATED 15 MILLION ADVERTISING ACCOUNT CURRENTLY HANDLED BY THE NEW YORK OFFICE OF CLEVELAND SHOP WYSE ADVERTISING PARTICIPANTS ARE BELIEVED TO INCLUDE LEO BURNETT CHICAGO AND WYSE FINALISTS STRIDE RITE CORP'S KEDS UNIT NAMED FOUR FINALISTS IN THE PITCH FOR ITS 15 MILLION TO 20 MILLION AD ACCOUNT ARNOLD FORTUNA LAWNER & CABOT BOSTON HILL HOLLIDAY CONNORS COSMOPULOS BOSTON KIRSHENBAUM & BOND NEW YORK AND THE NEW YORK OFFICE OF WPP GROUP'S OGILVY & MATHER THE INCUMBENT LEONARD MONAHAN LUBARS & KELLY OF PROVIDENCE RI ISN'T PARTICIPATING A DECISION IS EXPECTED IN APRIL SPRINT SPRINT HAS ELIMINATED SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES NEW YORK FROM ITS SEARCH FOR A SECOND AD AGENCY EXECUTIVES SAID BACKER'S EXIT LEAVES THREE BIG NEW YORK AGENCIES GREY ADVERTISING INTERPUBLIC GROUP'S LINTAS AND WELLS RICH GREENE BDDP TO BATTLE FOR THE ESTIMATED 30 MILLION BUSINESSTOBUSINESS ASSIGNMENT SPRINT SAID IT PLANS TO HAVE A DECISION IN APRIL WHO'S NEWS DARRYL LINDBERG WAS NAMED TO THE NEW POST OF MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF TRACYLOCKE THE DALLAS OFFICE OF OMNICOM GROUP'S DDB NEEDHAM MR LINDBERG 42 YEARS OLD PREVIOUSLY HEADED THE AGENCY'S OPERATIONS IN SYDNEY AUSTRALIA 9403100003 940310 BUSINESS BRIEF VSE CORP NAVY CONTRACT WON BY FIRM IS PROTESTED BY TWO BIDDERS VSE CORP SAID A US NAVY LOGISTICS SUPPORT CONTRACT RECENTLY AWARDED TO THE COMPANY HAS BEEN PROTESTED BY TWO LOSING BIDDERS THE CONTRACT AWARDED IN LATE FEBRUARY COULD GENERATE REVENUE OF ABOUT 77 MILLION OVER THE NEXT FIVE YEARS FOR VSE'S VALUE SYSTEMS SERVICES DIVISION THE ALEXANDRIA VA ENGINEERING AND MANAGEMENT SERVICES COMPANY SAID THE PROTESTS WERE FILED WITH THE GENERAL ACCOUNTING OFFICE BY TWO LOSING BIDDERS JWK INTERNATIONAL CORP AND INFORMATION SPECTRUM INC BOTH OF NORTHERN VIRGINIA ROBERT WOJTAL LEGAL COUNSEL FOR INFORMATION SPECTRUM SAID HIS COMPANY BELIEVES ITS BID WASN'T CORRECTLY VALUED AND OUR PRICE WAS SIGNIFICANTLY LOWER THAN VSE'S THE COMPANY WON'T BEGIN WORK ON THE CONTRACT UNTIL THE GAO RULES ON THE PROTESTS SAID CRAIG WEBER VSE CHIEF FINANCIAL OFFICER 9403100002 940310 INTERNATIONAL BCCI HOLDERS TO PAY MORE TO DEPOSITORS OFFICIALS SAY ABU DHABI THE MAIN SHAREHOLDERS IN THE COLLAPSED BANK OF CREDIT & COMMERCE INTERNATIONAL WILL PAY 100 MILLION MORE IN COMPENSATION TO DEPOSITORS BANKING OFFICIALS CLOSE TO THE CASE SAID YESTERDAY THE BANKING OFFICIALS WHO SPOKE ON CONDITION THEY NOT BE IDENTIFIED CONFIRMED REPORTS FROM LONDON ABOUT A NEW DEAL BETWEEN TOUCHE ROSS THE INTERNATIONAL LIQUIDATORS FOR BCCI AND THE BANK'S ABU DHABI SHAREHOLDERS THE AGREEMENT IN PRINCIPLE INVOLVES PAYMENT OF 18 BILLION TOWARD COMPENSATING THE 250000 BCCI CREDITORS WHO LOST THEIR MONEY WHEN REGULATORS MOVED AGAINST THE BANK IN LONDON AND OTHER MAJOR CAPITALS IN JULY 1991 ON CHARGES OF MASSIVE FRAUDULENT DEALINGS THE AL NAHYAN RULING FAMILY OF ABU DHABI HELD 77 OF THE STOCK OF THE BANK WHICH OPERATED IN 69 COUNTRIES THE TALKS HAVE BEEN CONCLUDED A NEW AGREMENT HAS BEEN REACHED BETWEEN REPRESENTATIVES OF THE MAJORITY SHAREHOLDERS AND TOUCHE ROSS IN PRINCIPLE BUT DETAILS OF THE NEW AGREEMENT ARE NOT YET REVEALED SAID ONE OF THE OFFICIALS 9403100001 940310 INTERNATIONAL BRIEF FOERSAEKRINGS AB SKANDIA PRETAX PROFIT FOR 1993 SWINGS SWEDISH INSURER FROM LOSS SWEDISH INSURER FOERSAEKRINGS AB SKANDIA SAID IT SWUNG TO A 201 BILLION KRONA 2508 MILLION OPERATING PROFIT IN 1993 THE BEST OPERATING RESULT IN THE GROUP'S HISTORY BECAUSE OF IMPROVEMENT IN INSURANCE AND INVESTMENT OPERATIONS AS WELL AS BETTER INCOME FROM ASSOCIATED COMPANIES SKANDIA'S 1992 LOSS WAS 324 BILLION KRONA SKANDIA ALSO ANNOUNCED A 3 BILLION KRONA RIGHTS ISSUE AIMED AT EXISTING SHAREHOLDERS DEFINITIVE TERMS OF THE SHARE ISSUE SKANDIA'S FIRST SINCE 1978 WILL BE DECIDED AT A MEETING OF ITS BOARD ON MARCH 23 AND WILL BE SUBJECT TO THE APPROVAL OF THE ANNUAL GENERAL MEETING ON APRIL 14 9403100117 940208 PRICING HEALTH CARE CHOICE A MYTH IN CLINTON PLAN BY PHIL GRAMM IN PRESENTING HIS HEALTH CARE PLAN TO THE AMERICAN PUBLIC PRESIDENT CLINTON HAS REPEATEDLY DECLARED HIMSELF FIRMLY FOR CHOICE IN HIS FIRST STATEMENT ON HEALTH CARE THIS YEAR MR CLINTON EVEN CLAIMED THAT HIS PLAN GUARANTEES MORE CHOICES OF HEALTH CARE NOT ONLY TO THE PATIENTS WHO REALLY MATTER BUT ALSO TO THE DOCTORS AND THE HEALTH CARE PROVIDERS BUT WHILE CLAIMING THAT HIS PLAN PROTECTS CONSUMER SOVEREIGNTY IN HEALTH CARE THE PRESIDENT IS IN FACT ENGAGED IN DOUBLESPEAK AIMED AT MISLEADING THE PUBLIC TO MOST AMERICANS THE MEANING OF CHOICE COULDN'T BE CLEARER I ENJOY FREEDOM OF CHOICE IF I CAN GO TO THE DOCTOR I PREFER IF I CAN PICK MY INSURANCE AND IF I CAN SWITCH WHEN I FIND ANOTHER PLAN THAT SUITS ME BETTER I HAVE NO REAL CHOICE IF THE GOVERNMENT FORCES ME TO ABANDON A PLAN THAT I LIKE IF IT FORCES ME INTO A HEALTH CARE PLAN I DON'T LIKE AND IF IT BARS ME FROM GOING OUTSIDE THE GOVERNMENTRUN SYSTEM TO BUY HEALTH INSURANCE BY ANY HONEST DEFINITION OF CHOICE THE CLINTON HEALTH CARE PLAN ELIMINATES THE BASIC ELEMENTS OF FREE CHOICE UNDER THE CLINTON PLAN UNLESS YOU ARE ONE OF THE PRIVILEGED FEW WHO WORK FOR THE GOVERNMENT OR FOR HUGE COMPANIES THAT EMPLOY MORE THAN 5000 PEOPLE YOUR HEALTH INSURANCE WILL BE CANCELED WHETHER YOU LIKE IT OR NOT UNDER THE CLINTON PLAN YOU WILL BE FORCED TO PAY MONEY INTO A GOVERNMENTRUN COLLECTIVE CALLED A REGIONAL ALLIANCE TO PURCHASE A STANDARD BENEFITS PACKAGE FULL OF SERVICES THAT YOU MAY NEITHER WANT NOR NEED AND UNDER THE CLINTON PLAN YOU WILL BE PROHIBITED FROM PURCHASING PRIVATE HEALTH INSURANCE AS AN ALTERNATIVE TO THE GOVERNMENTDESIGNED PACKAGE BUT THE PRESIDENT DOESN'T DARE OWN UP TO THE FACT THAT IN HIS PLAN BUREAUCRATS CHOOSE AND CONSUMERS CANNOT OPT OUT INSTEAD MR CLINTON DEFINES CHOICE TO MEAN SOMETHING THAT WILL ASTONISH MOST AMERICANS PAGE 15 OF THE PRESIDENT'S HEALTH SECURITY ACT OFFERS A SUBSECTION TITLED PROTECTION OF CONSUMER CHOICE AND IT BEGINS NOTHING IN THIS ACT SHALL BE CONSTRUED AS PROHIBITING AN INDIVIDUAL FROM PURCHASING ANY HEALTH CARE SERVICES SO NOTHING IN THE CLINTON PLAN WILL PREVENT ME FROM GOING TO THE DOCTOR OF MY CHOICE AND PURCHASING THE HEALTH CARE I NEED FAIR ENOUGH BUT WHAT IF THE SURGEON I WANT ISN'T INCLUDED IN THE GOVERNMENTDESIGNED PLAN HOW AM I SUPPOSED TO PAY FOR THAT SO WE READ ON AND ON AND ON ON PAGE 239 WE COME TO THE RELEVANT PROVISION NO HEALTH PLAN INSURER OR ANY OTHER PERSON MAY OFFER TO ANY ELIGIBLE INDIVIDUAL A SUPPLEMENTAL HEALTH BENEFIT POLICY THAT DUPLICATES ANY COVERAGE PROVIDED IN THE COMPREHENSIVE BENEFIT PACKAGE WAIT A MINUTE AS AN ELIGIBLE INDIVIDUAL AND JUDGING FROM PAGE 14 ONLY ILLEGAL ALIENS ARE INELIGIBLE I MUST BUY HEALTH CARE FROM A GOVERNMENTRUN OR GOVERNMENTAPPROVED COLLECTIVE UNDER THE CLINTON PLAN AND I CANNOT BUY A PRIVATE PLAN LIKE MANY ON THE MARKET TODAY THAT ALLOWS ME TO PICK MY SURGEON NOT THEIR SURGEON ANYBODY WHO TRIES TO SELL ME A PRIVATE INSURANCE POLICY SHALL BE SUBJECT TO A CIVIL MONETARY PENALTY NOT TO EXCEED 10000 FOR EACH SUCH VIOLATION PAGE 241 NOW BACK TO PAGE 15 NOTHING IN THIS ACT SHALL BE CONSTRUCTED AS PROHIBITING AN INDIVIDUAL FROM PURCHASING ANY HEALTH CARE SERVICES BUT EVERYTHING ELSE IN THE HEALTH SECURITY ACT PROHIBITS AN INDIVIDUAL FROM FINANCING HEALTH CARE SERVICES BOUGHT OUTSIDE THE GOVERNMENT PLAN SO WHAT DOES CHOICE AMOUNT TO UNDER THE CLINTON PLAN IT MEANS THAT AFTER FORCING ME AND MY EMPLOYER TO BUY INTO THE GOVERNMENT PLAN I GET THE CHOICE OF EITHER USING THE GOVERNMENT'S PLAN OR PAYING TWICE FOR HEALTH CARE ONCE FOR A GOVERNMENT PLAN I MIGHT NOT WANT AND ONCE FOR THE PRIVATE HEALTH CARE I DO WANT WITH THE DOCTOR I WANT AT THE HOSPITAL I WANT BUT EVEN IF I PAY TWICE THE SECOND PAYMENT CANNOT BE UNDER AN INSURANCE ARRANGEMENT NEEDLESS TO SAY THIS IS NOT HOW MOST OF US WOULD INTERPRET THE WORD CHOICE MOREOVER PAYING ONCE FOR MEDICAL CARE IS HARD ENOUGH PAYING TWICE TO OBTAIN QUALITY CARE WILL BE PROHIBITIVE FOR MOST AMERICANS INDEED THE ONLY AMERICANS WHO WILL CONTINUE TO ENJOY REAL CHOICE UNDER THE CLINTON PLAN ARE THOSE WHO CAN AFFORD TO PAY TWICE AND PAY THE SECOND TIME WITHOUT THE ASSISTANCE OF HEALTH INSURANCE TO GET THE DOCTOR THE HOSPITAL AND THE CARE THAT THEY NOT THE GOVERNMENT JUDGE NECESSARY IF IT'S AVAILABLE AT ALL UNDER THE CLINTON PLAN THE SUPPLY OF DOCTORS WHO ARE WILLING TO PROVIDE NONINSURED SERVICES MAY BE SEVERELY LIMITED SINCE EVEN SUCH SERVICES WILL BE SUBJECT TO THE PLAN'S PRICE CONTROLS IN HIS EFFORTS TO NATIONALIZE THE AMERICAN HEALTH CARE SYSTEM MR CLINTON HAS ARGUED THAT UNDER THE CURRENT SYSTEM SOME AMERICANS ARE SIMPLY UNABLE TO PURCHASE THE MEDICAL CARE OF THEIR CHOICE BUT HIS WAY OF RECTIFYING THIS PROBLEM IS BY MAKING CERTAIN THAT FEW OF US CAN AFFORD THE MEDICAL CARE OF OUR CHOICE THE PRESIDENT SAYS HE WANTS TO FIX WHAT'S BROKEN IN AMERICAN HEALTH CARE THE TRUTH IS HE WANTS TO USE WHAT'S BROKEN AS A JUSTIFICATION FOR THROWING OUT THE WHOLE SYSTEM AND ADOPTING SOCIALIZED MEDICINE WHEN AMERICANS DISCOVER THIS SIMPLE FACT ABOUT THE CLINTON PLAN ONE HOPES HIS CREDIBILITY WILL ONCE AGAIN BE LOST AND HIS PLAN WILL DIE THEN MAYBE WE CAN WRITE A REAL HEALTH REFORM PLAN A PLAN THAT ENSURES FOR EXAMPLE ACCESS TO HEALTH CARE TO ALL THROUGH REFORM OF OUR MISGUIDED TAX LAW THAT GUARANTEES ALL AMERICANS THE RIGHT TO PICK THEIR DOCTORS AND HOSPITALS THAT CONTROLS HEALTH CARE INFLATION BY LETTING AMERICANS KEEP WHAT THEY SAVE THROUGH THE CREATION OF MEDICAL SAVINGS ACCOUNTS BUT THE HEALTH CARE REFORM AMERICA WANTS CANNOT OCCUR UNTIL THE PRESIDENT'S SOCIALIZED MEDICINE PLAN IS REJECTED MR GRAMM A REPUBLICAN IS THE SENIOR US SENATOR FROM TEXAS SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE LOSING HEALTHCARE CHOICE NOW WSJ MARCH 10 1994 9402080158 YY94 MM03 9403100075 940201 TRACKING TRAVEL BY SUSAN CAREY IF A TRIP TO CUBA HAS CROSSED YOUR MIND THINK AGAIN WHILE IT'S LEGAL TO VISIT MOST AMERICANS ARE BARRED FROM SPENDING MONEY THERE ON BUSINESS OR TOURISM THE RESTRICTION PART OF THE US ECONOMIC EMBARGO ON CUBA EXISTS DESPITE THAT COUNTRY'S RECENT EASING OF TRAVEL RESTRICTIONS FOR CUBANS OR CUBANAMERICANS LIVING IN THE US VIOLATORS FACE FINES OF UP TO 50000 AND 10 YEARS IN PRISON THE TREASURY DEPARTMENT ALLOWS A FEW EXCEPTIONS THOUGH THE BIGGEST IS CUBANAMERICANS VISITING CLOSE RELATIVES OTHERS INCLUDE JOURNALISTS SCHOLARS GOVERNMENT OFFICIALS AMERICANS WHOSE TRIPS ARE FULLY FUNDED BY NONAMERICAN INTERESTS AND OTHERS LICENSED FOR THINGS LIKE HUMANITARIAN MISSIONS TO ENSURE COMPLIANCE TREASURY SAYS IT AUDITS TRAVEL AGENTS AND AIRLINE CHARTER OPERATORS THAT ARRANGE TRAVEL TO CUBA TRAVEL AGENTS REPORT THAT SOME AMERICANS FLY TO CUBA VIA CANADA OR THE CARIBBEAN OR SAIL THERE ON PRIVATE YACHTS CUBAN IMMIGRATION OFFICIALS NORMALLY DON'T STAMP THEIR PASSPORTS SO CHANCES OF BEING CAUGHT ARE MINIMAL FROM 1986 UNTIL LAST FALL HAVANA LIMITED CUBANAMERICAN VISITORS TO 100 PER WEEK THE WAITING LIST WAS 30000 REPORTS ONE AIRLINE OFFICIAL TODAY THERE ARE NO LIMITS AND THE REQUIREMENT THAT VISITORS BUY HOTEL PACKAGES HAS BEEN DROPPED HAVANA ALSO AUTHORIZED AN INCREASE IN CHARTER FLIGHTS FROM MIAMI NOW THERE ARE 10 A WEEK AND EVERYTHING IS FULL SAYS VIVIAN MANNERUD PRESIDENT OF AIRLINE BROKERS A CHARTERER MARAZUL TOURS WHICH FLIES TO HAVANA AND SELLS TRAVEL PACKAGES SAYS ITS THRICEWEEKLY CHARTER FLIGHTS ARE JAMMED BOB GUILD A PROGRAM DIRECTOR SAYS THE NUMBER OF NONCUBAN VISITORS WHO FALL UNDER THE TREASURY'S EXEMPTIONS IS UP AS WELL MARAZUL HANDLED 1600 SUCH VISITORS IN 1992 AND 2500 LAST YEAR HE SAYS TRAVELERS GOING ABROAD CAN GET INITIAL ADVICE ON VACCINATIONS THEY'LL NEED FROM TRAVEL AGENTS AND AIRLINE RESERVATION CLERKS BUT PRETRAVEL CARE MAY BE MORE DIFFICULT TO OBTAIN THERE'S NO CERTIFICATION PROCESS FOR TRAVELMEDICINE PHYSICIANS IN THE US SAYS LEONARD MARCUS A NEWTON MASS DOCTOR IN THE FIELD WHICH SPECIALIZES IN PRETRAVEL VACCINATIONS AND TREATMENT OF EXOTIC DISEASES BUT THE AMERICAN SOCIETY FOR TROPICAL MEDICINE & HYGIENE OF WHICH HE IS A MEMBER IS PREPARING A CERTIFICATION EXAM AS WELL AS CURRICULA FOR MEDICAL SCHOOLS HE SAYS AMERICAN EXPRESS AND CARLSON TRAVEL NETWORK TWO BIG TRAVEL AGENCIES SAY AGENTS WITH ACCESS TO BIG COMPUTER RESERVATIONS SYSTEMS CAN GIVE INFORMATION ON DISEASE OUTBREAKS NEEDED VACCINES AND THE LIKE BY TAPPING INTO A DATABASE MOST US AIRLINES' RESERVATIONS STAFF ALSO HAVE ACCESS TO THE DATA BUT WE WOULDN'T BE YOUR PRIMARY SOURCE FOR MEDICAL INFORMATION CAUTIONS AN AMERICAN AIRLINES SPOKESWOMAN US TRAVELERS MIGHT SEEK ADVICE FROM THE INTERNATIONAL TRAVELER HOTLINE 404 3324559 OPERATED BY THE CENTERS FOR DISEASE CONTROL & PREVENTION IN ATLANTA IT GIVES INFORMATION ON FOOD AND WATER PRECAUTIONS GENERAL VACCINATION REQUIREMENTS AND GEOGRAPHICSPECIFIC DISEASES RISKS AND PREVENTION BUT FOR SHOTS TRAVELERS STILL MUST VISIT A PHYSICIAN OR PUBLIC HEALTH CLINIC WHICH MAY NOT HAVE THE VACCINES ON HAND ON THE SOCIETY'S BEHALF DR MARCUS MAINTAINS A LIST OF TRAVELMEDICINE PRACTITIONERS IN NORTH AMERICA WHILE FAR FROM COMPLETE THE LIST HAS GROWN TO 117 NAMES FROM ABOUT 75 THREE YEARS AGO HE SAYS TO OBTAIN IT SEND A LARGE SELFADDRESSED ENVELOPE AND 98 CENTS IN POSTAGE TO TRAVELERS HEALTH & IMMUNIZATION SERVICES 148 HIGHLAND AVE NEWTON MASS 02165 SINCE THE AIR CARRIER ACCESS ACT WENT INTO EFFECT IN 1990 AIRLINES FLYING PLANES OF 30 SEATS OR MORE CAN'T REFUSE TO TRANSPORT DISABLED INDIVIDUALS BUT WITH MORE THAN 300 US AIRPORTS SERVED EXCLUSIVELY BY COMMUTER AIRLINES THE DEPARTMENT OF TRANSPORTATION IS PROPOSING TO AMEND THE ACT TO INCLUDE PLANES OF 19 TO 30 SEATS AS MORE FEEDER PLANES COME INTO THE HUBS IT'S GOING TO BE AN ISSUE SAYS EDNA COOK DIRECTOR OF FLYING WHEELS TRAVEL AN OWATONNA MINN AGENCY THAT ARRANGES TRAVEL FOR THE DISABLED PARALYZED VETERANS OF AMERICA CONCEDES THAT IT WOULDN'T MAKE SENSE TO MANDATE SUCH A CHANGE FOR PLANES OF 18 SEATS OR FEWER BECAUSE THEY'RE TOO SMALL BUT PVA AND OTHER ADVOCACY GROUPS SUPPORT THE DEPARTMENT'S PLANS TO REQUIRE THE PURCHASE OF RAMPS OR HYDRAULIC COMMUTERAIRCRAFT BOARDING LIFTS TO LOAD WHEELCHAIRUSING PASSENGERS INTO 19 TO 70SEAT PLANES IN MOST CASES THESE TRAVELERS ARE PLACED IN NARROW CHAIRS ON THE TARMAC AND LIFTED ONTO SMALL PLANES SOME UNDERSTANDABLY DON'T LIKE THIS APPROACH AND SOME AIRLINE AND AIRPORT WORKERS CAN'T OR WON'T ASSIST AND SOME HANDICAPPED INDIVIDUALS WHO HAVE BEEN DENIED BOARDING ON 19SEAT PLANES HAVE SUED AIRLINES WHILE AIRPORTS AND AIRLINES GENERALLY SUPPORT THE PROPOSAL THE BIG STICKING POINT IS WHO WILL PAY FOR THE BOARDING LIFTS WHICH COST BETWEEN 8000 AND 40000 UNLESS AN AIRLINE IS GOING TO USE IT EXCLUSIVELY THE AIRPORT SHOULD FUND IT SAYS THE REGIONAL AIRLINE ASSOCIATION AIRLINES NOT AIRPORTS ARE RESPONSIBLE FOR HANDLING PASSENGERS RESPONDS THE AIRPORTS COUNCIL INTERNATIONAL THE PLAN WOULD GIVE AIRPORTS AND CARRIERS NINE MONTHS TO DECIDE HOW TO SPLIT THE COST AND THREE YEARS TO INSTALL THE EQUIPMENT HYATT HOTELS IN DOING RESEARCH BEFORE INTRODUCING ROOMS WITH WORKSTATIONS FAX MACHINES AND COMPUTER HOOKUPS FOUND THAT 72 OF ITS BUSINESS GUESTS FEEL MORE PRESSURE TO PRODUCE ON BUSINESS TRIPS THAN THEY DID FIVE YEARS AGO MORE THAN 80 BELIEVE THEY WORK HARDER THAN THEIR BOSSES ON SUCH TRIPS A CONCIERGE AT CHICAGO'S RITZCARLTON HOTEL SAID ONE OF HER MOST UNUSUAL REQUESTS LAST YEAR WAS TO RESERVE A BASKETBALL COURT FOR A COMPANY PRESIDENT SEE RELATED LETTER LETTERS TO THE EDITOR DEVICES LET DISABLED BOARD SMALL AIRCRAFT WSJ MARCH 10 1994 9402010135 YY94 MM03 9403100073 940203 HOW A NICE GIRL' EVOLVED INTO BOSS THE GANGSTER RAPPER HER VULGAR SONGS OF STREET LIFE AND ABOUT SHOOTING COPS BELIE A MIDDLECLASS PAST BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WEARING BAGGY DENIM GARB DARK SHADES AND A BLUEANDWHITE BANDANA AROUND HER HEAD LICHELLE BOSS LAWS SAUNTERS ARROGANTLY BEFORE A CROWD OF ARMWAVING FANS AT THE DC ARMORY IN A VEXATIOUS VOICE SHE SAYS I DON'T GIVE A F ABOUT NONE OF YA'LL THE AUDIENCE ROARS ADORINGLY AS ONE OF THE FIRST FEMALE GANGSTER RAPPERS TO CLIMB THE CHARTS THE 24YEAROLD MS LAWS IS BECOMING AS WELL KNOWN FOR HER PERSONA AS FOR HER MUSIC SHE BOASTS OF A PERSONAL ARSENAL OF AUTOMATIC WEAPONS AND OF HANGING WITH STREET GANGS SHE DRINKS MALT LIQUOR FROM 40OUNCE BOTTLES CURSES INCESSANTLY AND MUSES ALOUD ABOUT KILLING SOMEONE ANYONE SHE CERTAINLY DOESN'T RESEMBLE THE LITTLE GIRL WHO LILLIE AND JOE LAWS RAISED IN A MIDDLECLASS NEIGHBORHOOD OF DETROIT THE YOUNGEST OF THREE DAUGHTERS LICHELLE ATTENDED PRIVATE SCHOOL FROM FIRST GRADE THROUGH HIGH SCHOOL FOR 15 YEARS SHE WAS A STUDENT OF BALLET MODERN DANCE AND THE PIANO SHE ATTENDED CHURCH AND WENT TO COLLEGE SHE MAJORED IN BUSINESS AND BECAME A FRATERNITY SWEETHEART HOW DID THIS GIRLNEXTDOOR BECOME A MENACETOSOCIETY RAPPER I COME FROM A GOOD HOME BUT I'VE SEEN BOTH SIDES SHE SAYS I'VE SLEPT ON A BENCH AND HUSTLED IN THE GHETTO TOO MS LAWS NOW WORKS IN A GENRE GANGSTER RAP IN WHICH PROJECTING A TOUGH IMAGE IS AS IMPORTANT AS HER SOUND THE SAD TRUTH IS THE HARDER THE RAPPER'S IMAGE THE MORE MUSIC THEY SELL SAYS DAVID DICKERSON A SILVER SPRING MD RAPMUSIC PRODUCER IT WASN'T UNTIL MS LAWS ACQUIRED THE FLAVOR ENTERTAINMENT INDUSTRY JARGON DESCRIBING THE STYLE FOUND AMONG YOUTH FROM AMERICA'S MEAN STREETS THAT SHE WAS ABLE TO LAND A RECORDING CONTRACT I TRIED THE STRAIGHTUP NICE GIRL APPROACH SHE SAYS AND IT DIDN'T WORK SO SHE NOW RAPS SONGS SUCH AS A BLIND DATE WITH BOSS IN WHICH SHE ACTS OUT THE SEDUCTION AND MURDER OF HER DATE A MACHO MISOGYNIST WHEN MS LAWS WAS GROWING UP HER PARENTS WOULD TAKE THEIR THREE DAUGHTERS OUT TO DINNERS MOVIES AND PLAYS HER FATHER A RETIRED AUTO WORKER RECALLS DRIVING THROUGH THE CITY'S DEPRESSED AREAS AND TELLING HIS GIRLS THIS IS WHY I WANT YOU TO GO TO SCHOOL SO YOU DON'T HAVE TO LIVE LIKE THIS AT ST MARY OF REDFORD SCHOOL WHERE MS LAWS ATTENDED GRADES ONE THROUGH 12 SHE WAS KNOWN AS A QUIET STUDENT ONE OF HER COUNSELORS SISTER LORETTA SCHROEDER RECALLS HER AS A VERY PRETTY GIRL AND A LITTLE ON THE SHY SIDE BUT FOLLOWING THE LEAD OF HER MORE OUTGOING OLDER SISTER KARYL LICHELLE EVENTUALLY BROKE FROM HER SHELL AND BECAME A CHEERLEADER AND MEMBER OF THE HOMECOMING QUEEN'S COURT AFTER FINISHING HIGH SCHOOL IN 1987 MS LAWS ENROLLED AT OAKLAND UNIVERSITY IN ROCHESTER MICH AROUND THIS TIME SHE BEGAN ADMIRING THE FEMALE RAP GROUPS THAT WERE JUST BECOMING POPULAR SHE STARTED WRITING MATERIAL OF HER OWN AND TRYING IT OUT ON FELLOW STUDENTS SHE WOULD STAND OUTSIDE THE DORM AND RAP RECALLS CLASSMATE KEITH ARNOLD IT WAS OBVIOUS THAT SHE HAD A PASSION FOR IT EVENTUALLY MS LAWS AND CLASSMATE IRENE MOORE FORMED A GROUP AND PERFORMED AT CAMPUS FUNCTIONS LIKE OTHER FEMALE RAPPERS THEN THE ACT WAS FREE OF PROFANITY AND VIOLENT LYRICS WE WERE WEARING LITTLE CUTE MATCHING OUTFITS ON STAGE MS LAWS RECALLS IN THE MIDDLE OF HER JUNIOR YEAR MS LAWS DECIDED TO DROP OUT TO CONCENTRATE ON A CAREER AS A RAPPER SHE WORKED DAYS IN COMPUTERDATA ENTRY AND PERFORMED IN DETROIT RAP CLUBS AT NIGHT BY EARLY 1990 MS LAWS AND MS MOORE HAD MOVED TO LOS ANGELES IN HOPES OF GETTING DISCOVERED THEY SOON LEARNED THAT THE INDUSTRY WAS MORE FASCINATED WITH A GROUP OF HARDCORE GANGSTA RAPPERS LIKE ICET AND NWA THAN WITH THEIR SOFTER STYLE PRODUCERS WHO TURNED THEM DOWN WERE TELLING US THAT WE DIDN'T CURSE ENOUGH SAYS MS LAWS THE WOMEN DECIDED TO START USING PROFANITY IN THEIR RAPS WITH LITTLE MONEY MS LAWS SAYS THEY STAYED FIRST IN ROACHINFESTED HOTELS AND WHEN THEIR MONEY RAN OUT ON BENCHES OR AT PEOPLES' HOMES JEFF FORSTON A RAPPER AND PRODUCER SAYS HE PUT THEM UP FOR A FEW DAYS THE WOMEN WERE LIVING REAL FOUL HE RECALLS MS LAWS BEGAN DRESSING DOWN DONNING BAGGY PANTS BIG WORK SHIRTS AND SKULL CAPS DUDS FAVORED BY GANGSTER RAPPERS IN PROMOTING HER CAREER AS A GANGSTER RAPPER MS LAWS HAS MADE MUCH OF HER EXPERIENCES OF LIVING IN THE STREETS SHE SAYS SHE SOLD DRUGS AND HUNG WITH THE NOTORIOUS STREET GANG THE BLOODS SHE ALSO SAYS SHE SPENT SOME TIME IN JAIL SHE DIDN'T AND THE STORIES ABOUT HER LIFE ON THE STREETS CAN'T BE VERIFIED HER MOTHER ALSO INSISTS THAT SHE SENT HER DAUGHTER MONEY LICHELLE COULD HAVE STAYED AT THE EMBASSY SUITES WITH ALL OF THE MONEY WE WERE SENDING HER SHE SAYS IN ANY CASE HER MUSIC BEGAN TO REFLECT THE DESPERATION OF STREET LIFE SHE BEGAN WRITING EXPLICITLY VIOLENT AND SEXUAL RAP LYRICS THEN A YEAR AFTER ARRIVING IN LOS ANGELES MS LAWS AND MS MOORE WALKED INTO THE OFFICES OF TWO PRODUCERS TRACY KENDRICK AND COURTNEY BRANCH THEY INSISTED THAT SOMEONE LISTEN TO THEM RAP OR THEY WOULDN'T LEAVE RECALLS MR KENDRICK HE AND MR BRANCH LISTENED AND IMMEDIATELY BEGAN WORKING WITH THEM HELPING THEM POLISH THEIR MATERIAL AND GIVING THEM A PLACE TO LIVE EVERYONE ELSE OUT HERE HAD BEEN TURNING THEM DOWN SAYS MR BRANCH I HEARD LICHELLE RAP AND I SAID THIS IS THE GREATEST RAPPER ON EARTH ABOUT SIX MONTHS LATER WITH HER NEW MATERIAL DRESSEDDOWN IMAGE AND THE GUIDANCE OF MESSRS BRANCH AND KENDRICK MS LAWS SIGNED WITH DEF JAM WEST RECORDS A UNIT OF SONY CORP'S SONY MUSIC ENTERTAINMENT INC NOW GROSS SALES FROM MS LAWS'S FIRST ALBUM BORN GANGSTAZ HAVE REACHED 733000 SINCE ITS RELEASE LAST SPRING ACCORDING TO DEF JAM SHE HAS JUST RELEASED A VIDEO AND IS WORKING ON A SECOND ALBUM AND OTHER PROJECTS ON THE COVER OF BORN GANGSTAZ MS LAWS AND MS MOORE STRIKE VARIOUS POSES CLUTCHING AUTOMATIC WEAPONS BUT MS MOORE APPEARS ON THE RECORDING ONLY AS A GUEST MS MOORE IS NOW COMPLETING HER OWN ALBUM FOR DEF JAM AND THE TWO WOMEN NO LONGER PERFORM TOGETHER FOR MS LAWS'S PARENTS ACCEPTING THEIR DAUGHTER'S NEWFOUND FAME HASN'T BEEN EASY AT FIRST WE WERE COMPLETELY DISGUSTED WITH HER SAYS HER MOTHER WHEN STUDENTS AT THE JUNIORHIGH SCHOOL WHERE SHE TAUGHT WOULD COME UP TO ME AND SAY I HEAR BOSS IS YOUR DAUGHTER' I'D SAY NO I DON'T KNOW A THING ABOUT HER' MRS LAWS RETIRED FROM TEACHING LAST JUNE MEMBERS OF HER CHURCH TALK ABOUT HER DAUGHTER TOO NOT TOO MANY OF OUR ADULT FRIENDS AGREE WITH WHAT SHE'S DOING SAYS MRS LAWS MS LAWS MAKES NO APOLOGIES FOR HER MUSIC A LINE FROM ONE SONG THEY WONDER WHY THEY LABEL ME INSANE BECAUSE I LOADED THE CLIP AND TOOK THE NINE TO THE COPPER'S BRAIN EVEN AMONG THOSE WHO APPRECIATE GANGSTER RAP THERE ARE CRITICS WHO SAY THAT MS LAWS STILL ISN'T THE REAL THING ONE POPULAR PUBLICIST SAYS THAT AFTER MEETING HER RECENTLY HE REALIZED SHE'S NOT REALLY A GANGSTER SHE'S AS SWEET AS PIE BUT WHEN SHE RAPS HE ADDS SHE'S VERY CONVINCING MS LAWS ANSWERS SUCH CRITICISM THIS WAY I'M BOTH A GANGSTER AND A SMART BUSINESS PERSON I KNOW WHAT I'M DOING AND I KNOW HOW TO MAKE IT IN THIS BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR A DISGRACEFUL STORY WSJ MARCH 10 1994 9402030089 YY94 MM03 9403100059 940210 SELECTIVE SERVICES FREEDOM TO CHOOSE A DOCTOR IS DWINDLING EVEN BEFORE REFORMS MORE EMPLOYERS LOWER COSTS BY RESTRICTING OPTIONS TREND IS ACCELERATING WHEN CHOICE' ISN'T CHOICE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL FOR SIX YEARS DAVID STEELE RELIED ON ROBERT MINER A PLASTIC SURGEON IN SANTA ANA CALIF FOR CONTINUING CORRECTIVE SURGERY TO IMPROVE MOBILITY IN HIS BADLY BURNED LEGS THEN MR STEELE'S EMPLOYER ROCKWELL INTERNATIONAL CORP MOVED TO CONTROL HEALTH COSTS BY RAISING EMPLOYEES' CONTRIBUTIONS TOWARD THEIR MEDICAL BILLS AND BY SETTING UP A NETWORK OF DOCTORS FOR WORKERS TO SEE DR MINER ISN'T IN THE NETWORK BUT UNDER THE COMPANY PLAN MR STEELE COULD CONTINUE TO SEE HIM IF HE PICKED UP A GREATER PORTION OF THE BILL WHEN THOSE CONTRIBUTIONS ROSE TO A 40 SHARE OF DR MINER'S CHARGES MR STEELE HAD TO SEEK MORE AFFORDABLE CARE HE SWITCHED TO ANOTHER CHEAPER HEALTH PLAN OFFERED TO ROCKWELL EMPLOYEES A HEALTH MAINTENANCE ORGANIZATION AND NOW MUST CONSULT ONLY ITS AFFILIATED DOCTORS MR STEELE'S EXPERIENCE IS NOT UNUSUAL BUT MANY AMERICANS DON'T REALIZE THAT UNLIMITED CHOICE OF DOCTORS IS STEADILY GOING THE WAY OF HOUSE CALLS MORE THAN HALF OF THE PEOPLE WHOSE EMPLOYERS PROVIDE HEALTH BENEFITS HAVE SOME RESTRICTIONS ON WHICH DOCTORS THEY MAY CHOOSE ACCORDING TO A STUDY SOON TO BE PUBLISHED IN HEALTH AFFAIRS JOURNAL FROM 1988 TO 1993 THE PERCENTAGE OF PEOPLE ENROLLED BY THEIR EMPLOYER IN FEEFORSERVICE HEALTH PLANS WHICH REIMBURSE FOR SERVICES FROM VIRTUALLY ANY PHYSICIAN OR HOSPITAL PLUMMETED TO 49 FROM 71 ACCORDING TO THE RESEARCH BY KPMG PEAT MARWICK AND ALMOST ALWAYS THE FEEFORSERVICE OPTION COMES AT A HIGHER COST TO THE EMPLOYEE THERE ARE VERY FEW COMPANIES THAT HAVE WIDE OPEN PICKANYDOCTORYOUWANT PLANS TODAY SAYS SHARON CANNER A HEALTHBENEFITS EXPERT AT THE NATIONAL ASSOCIATION OF MANUFACTURERS YET AS CONGRESS TAKES UP THE FIERCELY DEBATED ISSUE OF OVERHAULING THE HEALTHCARE SYSTEM SURVEYS SHOW ONE OF THE QUESTIONS FOREMOST ON PEOPLE'S MINDS IS WILL HEALTHCARE REFORM REDUCE MY ABILITY TO CHOOSE MY DOCTOR IN A POLL CONDUCTED LAST SPRING FOR THE ROBERT WOOD JOHNSON FOUNDATION 38 OF RESPONDENTS SAID THEY WERE MUCH LESS LIKELY TO SUPPORT HEALTHCARE REFORM LEGISLATION THAT RESTRICTED PEOPLE'S ABILITY TO CHOOSE DOCTORS AND HOSPITALS 26 SAID THEY WERE SOMEWHAT LESS LIKELY PARTLY WITH THIS IN MIND THE AMERICAN MEDICAL ASSOCIATION IS MAKING THE ISSUE A CORNERSTONE OF ITS LOBBYING CAMPAIGN TO PROTECT THE MEDICAL PROFESSION'S INTERESTS MOST OF THE MAJOR HEALTH PLANS BEFORE CONGRESS INCLUDING PRESIDENT CLINTON'S BILL TO GUARANTEE COVERAGE TO ALL AMERICANS CONTAIN FINANCIAL INCENTIVES SIMILAR TO THOSE OFFERED BY MANY LARGE COMPANIES TO ENCOURAGE PEOPLE TO ENROLL IN MANAGEDCARE PLANS UNDER THE WHITE HOUSE PROPOSAL FOR EXAMPLE WORKERS WOULD SELECT FROM A MENU OF HEALTH PLANS INCLUDING HMOS FEEFORSERVICE POLICIES AND OTHER FORMS OF PROVIDER NETWORKS BUT AS IN TODAY'S MARKET THEY LIKELY WOULD HAVE TO PAY EXTRA FOR PLANS OFFERING TOTAL FREEDOM OF DOCTOR CHOICE COGNIZANT OF PUBLIC SENTIMENT BACKERS OF EVERY HEALTH PROPOSAL HOPE TO NAVIGATE THE CHOICE MINEFIELD BY STRESSING THE PROVISIONS THAT WOULD LEAVE PEOPLE AT LEAST SOME DISCRETION IN PICKING THEIR PHYSICIANS FOR ALL THE EMOTION AND RHETORIC THE FREEDOM TO CHOOSE A DOCTOR NOT ONLY HAS BEEN SHARPLY DIMINISHED ALREADY BUT IS CERTAIN TO ERODE FURTHER FUELED BY A SHARP CORPORATE EXPANSION OF MANAGED CARE TO CURB COSTS AMR CORP GANNETT CO SEARS ROEBUCK & CO AMERITECH CORP AND MANY OTHER LARGE CORPORATIONS HAVE SET UP PLANS THAT LET EMPLOYEES SELECT FROM A NETWORK OF DOCTORS GENERALLY REQUIRE THEM TO GET APPROVAL TO SEE A SPECIALIST AND REQUIRE THEM TO PAY MORE IF THEY WISH TO GO OUTSIDE THE GROUP MANY PEOPLE ALREADY FIND THAT A CHANGE IN JOBS EFFECTIVELY CREATES A CHANGE IN DOCTORS AND SOME FACE A CHANGE IN MEDICAL TREATMENT TOO WHEN LILLIAN BIKASH OF NORTH QUINCY MASS SWITCHED EMPLOYERS ABOUT A YEAR AND A HALF AGO SHE AND HER HUSBAND HAD TO CHANGE HEALTH PLANS THEIR OLD POLICY REIMBURSED THEM FOR ANY DOCTOR THEY SAW THE NEW ONE WAS AN HMO MR AND MRS BIKASH HAD BEEN SEEING A PSYCHIATRIST AND WANTED TO CONTINUE THEIR THERAPY BUT THEIR PSYCHIATRIST WASN'T IN THE HMO REFERRAL NETWORK NO PSYCHIATRISTS WERE THE BIKASHES REMAINED IN THERAPY WITH THEIR PSYCHIATRIST BUT THEY HAD TO PAY THE ENTIRE BILL THEMSELVES A TAB OF NEARLY 5000 A YEAR WHEN YOU'RE DEALING WITH A THERAPIST YOU DEVELOP A RELATIONSHIP OF TRUST A GREAT DEAL OF TIME AND EMOTION ARE INVESTED MRS BIKASH SAYS IF YOU HAVE TO SWITCH DOCTORS IT'S ALMOST LIKE STARTING OVER AGAIN ROBERT TENERY WHO IS PRESIDENT OF THE TEXAS MEDICAL ASSOCIATION ESTIMATES THAT THE NUMBER OF HIS PATIENTS ON A HEALTH PLAN THAT RESTRICTS CHOICE OF PHYSICIANS HAS SWELLED TO ABOUT ONE IN THREE FROM ONE IN 20 IT'S ALL COME WITHIN THE PAST FEW YEARS HE SAYS A DALLAS OPHTHALMOLOGIST DR TENERY HAS SEEN THE ECONOMICS OF MANAGED HEALTH CARE LEAD A NUMBER OF HIS PATIENTS TO SWITCH TWICE TEXAS INSTRUMENTS INC NEGOTIATED A DEAL WITH PRESBYTERIAN HEALTH CARE SYSTEM IN AN EFFORT TO REIN IN EMPLOYEE HEALTH COSTS THAT WERE RISING AT AN ANNUAL RATE OF 22 WORKERS WHO WENT TO PRESBYTERIAN PAID ABOUT 30 LESS FOR THEIR PORTION OF HEALTHCARE COVERAGE THAN DID PEOPLE WHO WENT OUTSIDE THE NETWORK DR TENERY LOST SOME OF HIS TI PATIENTS BECAUSE HE IS AFFILIATED WITH DALLAS'S MEDICAL CITY HOSPITAL BUT LAST YEAR HE SAYS SOME FAMILIAR FACES REAPPEARED IN HIS WAITING ROOM IT SEEMS TI FAILED TO REACH AN ADDITIONAL AGREEMENT WITH THE PHYSICIAN STAFF OF PRESBYTERIAN FOR DOCTOR SERVICES TI CUT A DEAL WITH MEDICAL CITY DROPPED PRESBYTERIAN AND GAINED A NEW GROUP OF AFFILIATED PHYSICIANS AND DR TENERY WELCOMED BACK SOME TI WORKERS COMPANY EXECUTIVES SAY THEY TRIED TO INCLUDE AS MANY OF THEIR EMPLOYEES' REGULAR PHYSICIANS IN THE NEW NETWORK AS POSSIBLE TI ASKED WORKERS TO NOMINATE DOCTORS FOR THE NETWORK AND TOOK ON ANY WHO PASSED THE CREDENTIALING PROCESS AND AGREED TO TI'S PRICES TI OFFICIALS ALSO SAY THEY TOOK GREAT PAINS TO SMOOTH THE WAY FOR THEIR EMPLOYEES IN THE TUG OF WAR BETWEEN HOSPITAL STAFFS WE WERE ASTOUNDED THAT IT WENT AS SMOOTHLY AS IT DID WE DID SPEND A LOT OF TIME COMMUNICATING WITH EMPLOYEES EXPLAINING WHY SAYS SUE NELSON HEALTHBENEFITS MANAGER SUCH COMMUNICATION EVEN TERMINOLOGY COUNTS ACCORDING TO TOWERS PERRIN THE EMPLOYEEBENEFITS CONSULTING FIRM TOWERS PERRIN ADVISES CORPORATE CLIENTS TO USE THE TERM DOCTOR OF CHOICE WHEN EXPLAINING HOW AN EMPLOYEE IN A MANAGEDCARE PLAN GOES ABOUT GETTING A REFERRAL TO A SPECIALIST TYPICALLY THE PLAN WON'T PAY FOR A SPECIALIST'S SERVICES WITHOUT CLEARANCE FROM THE PATIENT'S DESIGNATED PRIMARYCARE PHYSICIAN IN THE NETWORK THE DOCTOR OF CHOICE THE HEALTHCARE INDUSTRY CALLS THAT DOCTOR A GATEKEEPER BUT NOTHING TURNS AN EMPLOYEE OFF MORE THAN TO SAY SELECT YOUR GATEKEEPER' WHICH SUGGESTS THAT YOU'RE NOT GOING TO GET THE CARE YOU NEED SAYS SID STOLZ A TOWERS PERRIN PRINCIPAL GANNETT FOLLOWED TOWERS PERRIN'S ADVICE ITS NEW HEALTHCARE PLAN IS CALLED COMMUNICARE CHOICE AND ITS LITERATURE MAKES FREQUENT USE OF THE CHOICE WORD BUT REDUCE THE PLAN TO ITS SIMPLEST TERMS AND IT'S CLEAR A COVERED EMPLOYEE MUST PAY MORE TO PICK A DOCTOR WHO ISN'T IN THE NETWORK AND THE PLAN WON'T PAY FOR SERVICES FROM A SPECIALIST UNLESS A NETWORK DOCTOR OF CHOICE CLEARS THE REFERRAL FOR MANY PEOPLE SERIOUS ILLNESS THROWS THE ISSUE OF PHYSICIAN CHOICE INTO SHARP RELIEF WHEN PHIL KAIM WAS DIAGNOSED WITH CANCER MORE THAN A YEAR AGO HE SOUGHT THE VERY BEST SPECIALIST HE DECIDED ON AN INDIANA UNIVERSITY PHYSICIAN CITED IN MANY ARTICLES ON MR KAIM'S AILMENT A MALIGNANCY OF THE LYMPH NODES SEVERAL TIMES HE MADE THE FOURHOUR DRIVE FROM HIS HOME IN BATAVIA ILL TO VISIT THE DOCTOR FOR CHEMOTHERAPY AND OTHER TREATMENT TODAY HE IS CANCERFREE MR KAIM SAYS I THINK WHEN YOU GO THROUGH SOMETHING AS TRAUMATIC AS CANCER AND YOU REALLY SEE YOUR OWN MORTALITY YOU WANT TO DO EVERYTHING IN YOUR POWER TO GET THE VERY BEST CARE THE 29YEAROLD MIDWESTERNER SAYS I THINK IF EVERYONE WAS PUT IN THAT SITUATION THEY'D ALSO THINK DOCTOR CHOICE IS VERY IMPORTANT THOUGH MR KAIM WAS HIGHLY SATISFIED WITH HIS TREATMENT CHOICE FOR HIM TOO CAME AT A COST HE WAS ENROLLED IN A BLUE CROSS PREFERRED PROVIDER NETWORK WHICH REQUIRED PATIENTS TO PAY A HIGHER PRICE IF THEY CHOSE TO SEE SPECIALISTS OUTSIDE THE PREFERREDPROVIDER LIST TO MR KAIM IT WAS WORTH IT YOU CAN GO TO ANY DOCTOR OR HOSPITAL IN THE COUNTRY HE SAYS THERE IS NO SUCH OPTION FOR THE NEARLY 39 MILLION PEOPLE WHO LACK ANY HEALTH INSURANCE AT ALL THEIR CHOICES ARE LIMITED TO PHYSICIANS WHO WILL ACCEPT AN UNINSURED PATIENT OR OFTEN TO THE EMERGENCYROOM STAFF AT A LOCAL HOSPITAL ALSO LIMITED ARE CHOICES FOR ABOUT 27 MILLION PEOPLE ON MEDICAID THE FEDERALSTATE HEALTH PROGRAM FOR LOWINCOME PEOPLE MEDICAID'S REIMBURSEMENT RATES ARE SO FAR BELOW THOSE OF PRIVATE INSURERS THAT MANY DOCTORS REFUSE TO SEE PATIENTS IN THE PROGRAM ANY HEALTHCARE LEGISLATION THAT COVERS ALL AMERICANS WOULD INCREASE CHOICE FOR THE CURRENTLY UNINSURED AND THOSE ON MEDICAID BUT IT IS THE EROSION OF CHOICE AMONG THE COMFORTABLY INSURED PEOPLE LIKE MR STEELE THAT STIRS UP THE MOST STRIKING CONTROVERSY IN THE HEALTHCARE REFORM DEBATE EVEN THOUGH IT'S NO LONGER THE SHOCK IT WAS SAY FIVE YEARS AGO WHEN JUST A FEW OF THE LARGE SOPHISTICATED COMPANIES WERE MOVING TOWARD DOCTOR NETWORKS MS CANNER SAYS THE GREAT SWITCHING SOUND CONTINUES TO OUTRAGE MANY MEDICAL SPECIALISTS SUCH AS DR MINER THE PLASTIC SURGEON IT'S THE SAME THING THEY GAVE YOU IN RUSSIA BEFORE THE WALL CAME DOWN SURE YOU CAN VOTE AND HERE'S WHO YOU CAN VOTE FOR SURE YOU CAN CHOOSE YOUR DOCTOR AND HERE'S THE LIST OF DOCTORS WE HAVE CHOSEN FOR YOU' HE SAYS IRONICALLY IT IS THE MEDICAL SYSTEM WITH THE MOST GOVERNMENT CONTROLS A NATIONAL SINGLEPAYER ARRANGEMENT UNDER WHICH THE GOVERNMENT USES TAXPAYER MONEY TO REIMBURSE PEOPLE FOR THEIR MEDICAL BILLS THAT ALLOWS PATIENTS THE GREATEST FREEDOM TO CHOOSE THEIR DOCTOR SOMETIME ABOUT APRIL THE AMA IS GOING TO WAKE UP AND SEE THAT ONLY A CANADIANTYPE SINGLEPAYER SYSTEM ALLOWS FREEDOM OF THE PATIENT TO CHOOSE SAYS ALAN HULL A DALLAS NEPHROLOGIST AND AN AMA MEMBER SUCH A TAXPAYERFINANCED GOVERNMENTRUN SYSTEM WOULD ALLOW INDIVIDUALS TO SELECT ANY DOCTOR OR HOSPITAL AND OBTAIN REIMBURSEMENT FROM THE GOVERNMENT A SINGLEPAYER BILL INTRODUCED BY LIBERALS IN CONGRESS HAS BEEN GIVEN LITTLE CHANCE OF PASSING HOWEVER AS LAWMAKERS TAKE UP HEALTHCARE REFORM ALL OF THE OTHER MAJOR PROPOSALS WOULD CONTINUE THE TREND TOWARD MANAGED CARE AND RESTRICTIONS ON CHOICE BUT ALL ALSO HOLD OUT PROMISES THAT SOME CHOICE WOULD REMAIN THE CLINTON PLAN ALSO WOULD SEVER THE EMPLOYERS' POWER TO DICTATE WHICH PLAN ITS WORKERS ENROLL IN THE BOTTOM LINE FOR THE AMERICAN HEALTH SYSTEM NOW AND UNDER ANY OF THE REFORM BILLS IN CONGRESS IS THAT CHOICE COMES AT A PRICE THE HEALTH PROGRAM THAT COVERS MORE THAN FOUR MILLION FEDERAL EMPLOYEES AND THEIR DEPENDENTS LETS WORKERS SELECT FROM A NUMBER OF PLANS THEIR CONTRIBUTION TO THE PREMIUM VARIES GENERALLY HMOS ARE CHEAPER BUT MANY SEEM WILLING TO PAY AN ADDED COST FOR LESSRESTRICTIVE OPTIONS DURING LAST SEPTEMBER'S ENROLLMENT PERIOD 707 SIGNED UP FOR FEEFORSERVICE POLICIES 293 ENROLLED IN HMOS OR OTHER NETWORKS FOR SOME A RESTRICTION HAS WORKED OUT JUST FINE JANET BAKER A SENIOREXECUTIVE AIDE AT TEXAS INSTRUMENTS WAS NERVOUS ABOUT CHANGING GYNECOLOGISTS WHEN SHE SWITCHED TO THE NETWORK SHE HELD HER BREATH AND PICKED A PHYSICIAN WHOSE OFFICE LOCATION WAS CONVENIENT NOW MS BAKER LIKES THE DOCTOR SHE ENDED UP WITH FAR BETTER THAN HER OLD ONE HE TURNED OUT TO BE VERY GOOD SHE SAYS I PROBABLY WOULDN'T HAVE FOUND HIM IF I HADN'T BEEN FORCED INTO IT HOW THE FIVE MAJOR HEALTHCARE REFORM PLANS AFFECT CHOICE CLINTON INDIVIDUALS AND FAMILIES CAN SELECT FROM AN ARRAY OF PRIVATE PLANS THROUGH THEIR REGIONAL HEALTH ALLIANCE EACH ALLIANCE MUST OFFER AT LEAST THREE PLANS INCLUDING AT LEAST ONE FEEFORSERVICE POLICY WHICH ALLOWS TOTAL FREE CHOICE EACH HMO MUST OFFER A POINT OF SERVICE POLICY THAT ALLOWS PATIENTS TO GO OUTSIDE THE NETWORK FOR A HIGHER FEE PLANS THAT OFFER MORE CHOICE ARE EXPECTED TO BE MORE EXPENSIVE THAN THOSE THAT RESTRICT CHOICE COOPERBREAUX PLAN PROVIDES INCENTIVES PRIMARILY THROUGH TAX CODE TO ENROLL IN HMOS OR OTHER MANAGEDCARE NETWORKS LIMITS EMPLOYER DEDUCTIBLITY OF EMPLOYEE HEALTH BENEFITS TO THE COST OF THE LOWESTPRICED PLAN IN A REGION MCDERMOTTWELLSTONE SINGLEPAYER INDIVIDUALS MAY SELECT ANY DOCTOR OR HOSPITAL AND BE REIMBURSED CHAFEEDOLE PLAN PROVIDES INCENTIVES TO ENROLL IN MANAGEDCARE NETWORKS LIMITS EMPLOYER DEDUCTIBLITY OF WORKER HEALTH PREMIUMS TO THE AVERAGE PREMIUM CHARGED BY THE LEAST EXPENSIVE HALF OF PLANS IN A REGION CAPS AT THAT SAME LEVEL THE EXCLUDABILITY OF EMPLOYERPROVIDED HEALTH BENEFITS FROM WORKERS' TAXABLE INCOME HOUSE REPUBLICANS DEGREE OF CHOICE DEPENDS ON PLAN OFFERED BY EMPLOYER SIMILAR TO THE CURRENT SYSTEM SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE LOSING HEALTHCARE CHOICE NOW WSJ MARCH 10 1994 9402100064 YY94 MM03 9403100069 940125 TRACKING TRAVEL BY ASRA Q NOMANI SO MUCH FOR AIRPORT SECURITY ON A FEW HOURS' NOTICE THIS REPORTER FLEW TO GENEVA LAST MONTH ON LUFTHANSA GERMAN AIRLINES TO COVER WORLD TRADE NEGOTIATIONS FLYING INTO FRANKFURT FOR A CONNECTION AN AWFUL DETAIL BECAME OBVIOUS MY PASSPORT HAD EXPIRED SIX MONTHS EARLIER IN JUNE THE LUFTHANSA TICKETCOUNTER AGENT AT WASHINGTON'S NATIONAL AIRPORT HADN'T NOTICED THE EXPIRATION WHEN SHE CHECKED THE PASSPORT MAKING MY CONNECTION IN FRANKFURT THE LUFTHANSA AGENT ONLY NEEDED TO SEE A BOARDING PASS AS IS PROCEDURE IN GENEVA TWO PASSPORT INSPECTORS STOOD GUARD IN BOOTHS AT THE AIRPORT ONE SEEMED LIKE A YOUNG EAGERBEAVER THE OTHER DIDN'T I CHOSE THE LATTER HE OPENED THE PASSPORT CHECKED IT AND YES WAVED ME ON I MADE IT IN BUT WAS THIS AN INDICATOR OF AIRPORT SECURITY IT'S AMAZING THAT YOU WENT THROUGH TWO CHECKS AND NONE OF THEM FOUND OUT SAYS YISRAEL BOIM PRESIDENT OF AIR SECURITY INTERNATIONAL A HOUSTON CONSULTING FIRM IT IS TROUBLING BECAUSE THAT IS THE ONLY CONTROL THAT PEOPLE HAVE TODAY TO MAKE SURE THAT NEGATIVE ELEMENTS DON'T GO THROUGH THE COUNTRY PRIVATELY A LUFTHANSA OFFICIAL EXPLAINS THE OVERSIGHT AS HUMAN ERROR BUT ASSERTS PASSPORTS HAVE BECOME LESS SIGNIFICANT WITH THE OPENING OF EUROPEAN BORDERS AND WAIVING OF VISA RULES SWITZERLAND DOESN'T REQUIRE VISAS FOR US CITIZENS AND VICE VERSA THE INSPECTOR'S FAILURE TO CHALLENGE ME HOWEVER WAS LET US SAY AN ACCIDENT SAYS ROLAND MOSER A SWISS OFFICIAL IN WASHINGTON IT SEEMS AS IF HE JUST CLOSED BOTH EYES BUT THAT DOESN'T MEAN EXPIRED PASSPORTS ARE OK RICHARD KENNEY A US IMMIGRATION AND NATURALIZATION SERVICE SPOKESMAN SAYS A SWISS CITIZEN TRYING TO ENTER THE US WITH AN EXPIRED PASSPORT WOULDN'T BE SO LUCKY HE SAYS YOU WOULD HAVE BEEN EXCLUDED THE BEST ADVICE CHECK YOUR PASSPORT BEFORE HEADING ABROAD THIS WAS THE DILEMMA THE LUFTHANSA TICKET READ WASHINGTONFRANKFURTGENEVA WITH THE SAME ROUTING FOR THE RETURN BUT IN GENEVA PLANS CHANGED A ONEWAY TRAIN RIDE TO PRAGUE ENTERED THE ITINERARY PLUS THE IDEA OF STOPPING IN LONDON ON THE WAY BACK COULD THE RETURN TICKET BE CHANGED WITHOUT MUCH COST LOCAL LUFTHANSA TICKETING AGENTS COULDN'T SAY THEIR COMPUTERS WERE DOWN CHECK IN PRAGUE AN AGENT ADVISED NOTING IT SHOULDN'T COST MUCH MORE INDEED IN PRAGUE A LUFTHANSA AGENT EASILY TRANSFERRED THE TICKET TO BRITISH AIRWAYS SCRIBBLING THE INITIALS BA AT THE TOP BRITISH AIRWAYS IN TURN REISSUED A TICKET TO WASHINGTON FROM PRAGUE VIA LONDON THE EXTRA COST ONLY 109 EVEN WITH THIS DETOUR IN PRAGUE THE LESSON AT THE PASSENGER'S REQUEST AIRLINES WILL TRANSFER SOCALLED EXCURSION FARES FOR OVERSEAS TRAVEL TO EACH OTHER WITH SOMETHING REFERRED TO AS VOLUNTARY ENDORSEMENTS INVOLUNTARY ENDORSEMENTS HAPPEN WHEN A PASSENGER WANTS A TRANSFER TO ANOTHER AIRLINE BECAUSE OF SOMETHING LIKE A MECHANICAL FAILURE OR SCHEDULING DELAY BUSINESS TRAVELERS USUALLY OPT FOR THESE LASTMINUTE FARES WHICH ARE MORE EXPENSIVE THAN THE ADVANCEPURCHASE FARES POPULAR AMONG VACATIONERS THE BENEFIT IS THAT NEW ROUTINGS DON'T COST MUCH MORE IF ANYTHING NOTES JEFF WRIGHT BRITISH AIRWAYS' PRICING MANAGER IN THE US THE EXCURSION FARES DON'T CARRY ROUTE RESTRICTIONS THE COUP IN THIS SITUATION FREQUENTFLIER MILES FROM BOTH BRITISH AIRWAYS AND LUFTHANSA CAN BE TRANSFERRED TO USAIR IT'S A SIMPLE CONCEPT CHECKING YOUR VOICE MAIL WHEN YOU'RE AWAY FROM THE OFFICE BUT IT'S NOT SO SIMPLE OVERSEAS EVEN FROM AN OTHERWISE TECHNOLOGICALLY DEVELOPED PLACE LIKE THE GENEVA HILTON HOTEL ONE SOLUTION TONE GENERATORS THESE ELECTRONIC GIZMOS ABOUT THE SIZE OF A BEEPER ARE HIGHTECH COUSINS OF GADGETS THAT EMERGED IN THE 1970S THESE OFTEN CAME WITH ANSWERING MACHINES AS A WAY TO CHECK MESSAGES WHILE AWAY FROM THE HOME OR OFFICE PHONES MOSTLY USED ROTARY LINES AT THE TIME AND DIDN'T PICK UP TONE COMMANDS AS THEY DO TODAY TO RETRIEVE ANSWERINGMACHINE MESSAGES YOU PUT THE TONE GENERATOR AGAINST THE RECEIVER AND KEY INTO THE DEVICE THE APPROPRIATE COMMANDS TODAY MOST PHONES IN THE US USE TOUCHTONE LINES BUT THAT ISN'T SO OVERSEAS IT'S REALLY PROBLEMATIC SAYS JOE BRANCATELLI TRAVEL ADVISER AT TRAVEL HOLIDAY A MONTHLY MAGAZINE I TAKE MY BLACK BOX WITH ME WHEN I'M TRAVELING SOME ARE PROGRAMMABLE SO USERS CAN ENCODE THEM WITH FOR EXAMPLE LONGDISTANCE ACCESS NUMBERS ONE VETERAN USER IS SKEPTICAL NOTING THE DEVICE IS SOMETIMES A DUD AND DOESN'T SEND SIGNALS BUT EDSEL ECTOR A SALESMAN AT A RADIO SHACK STORE IN DOWNTOWN WASHINGTON EXTOLS THE VIRTUES OF THE TECHNOLOGY FOR TRAVELERS WE JUST HAD A GUY COME IN TODAY WHO WANTED TO BUY SIX OF THEM FOR HIS OFFICE BUT WE HAD RUN OUT OF THEM FOR THE JOB IT DOES THERE'S NOTHING TO COMPETE WITH IT IT CERTAINLY BEATS PUNCHING BUTTONS TO NO AVAIL SOME FASHION ADVICE FOR THE OVERSEAS TRAVELER THONG SANDALS ARE THE STANDARD FOOTWEAR IN THE WEIGHT ROOM AT THE SLAVIA GYMNASIUM'S FIT CLUB CLASSIC IN PRAGUE WHERE MANY HEALTH CLUBS PREFER THEM OVER SNEAKERS AN OFFICIAL AT THE RITZ IN LONDON KICKED OUT TWO VISITORS STOPPING FOR TEA AT THE HOTEL'S LOBBY RESTAURANT THE PALM COURT NO JEANS ALLOWED HE SAID SEE RELATED LETTER LETTERS TO THE EDITOR HASTE MAKES WASTE WSJ MARCH 10 1994 9401250083 YY94 MM03 9403100066 940127 POLITICS & POLICY BLACKS' INCREASING VOCAL OPPOSITION TO VIOLENCE IS MATCHED BY STRONG OPPOSITION TO CRIME BILL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REV JESSE JACKSON THE OFTEN FIERY RAINBOW COALITION PRESIDENT WAS SUBDUED REFLECTIVE NEARLY RHYMELESS AT A RECENT HEARING OF THE CONGRESSIONAL BLACK CAUCUS BRAIN TRUST ON CRIME HE SPOKE SOLEMNLY HIS VOICE BREAKING OF HOW SOME YOUNG BLACK MEN FEEL MORE SECURE IN JAILS THAN ON OUR STREETS WITH TEARS IN HIS EYES HE SPOKE OF DEATH IN HIS OWN NEIGHBORHOOD HERE AND THE PRECARIOUS POSITION OF BLACK YOUTH NEARLY HALF OF ALL MURDER VICTIMS ARE BLACK HE SAID MORE BLACKS KILL EACH OTHER EACH YEAR THAN WERE KILLED IN THE ENTIRE HISTORY OF LYNCHING YET THE REV JACKSON ASSAILED ONE OF THE PRIME LEGISLATIVE VEHICLES FOR DEALING WITH THAT EXPLOSION OF VIOLENCE THE SENATEPASSED CRIME LEGISLATION THAT PRESIDENT CLINTON BACKED IN HIS STATE OF THE UNION ADDRESS THE MEASURE HE DECLARED IS AN ILLCONCEIVED BILL AND A DRACONIAN EXPENSIVE NONREMEDY THE BILL HAS WIDESPREAD BIPARTISAN SUPPORT IN THE SENATE LAWMAKERS CONTEND IT REPRESENTS THE TOUGHEST AND MOST COMPREHENSIVE GOVERNMENT ATTACK YET ON VIOLENT CRIME AN ISSUE AT THE TOP OF THE PUBLIC'S LIST OF CONCERNS IN OPINION POLLS BUT AT A TIME WHEN AFRICANAMERICANS INCREASINGLY ARE SPEAKING OUT AGAINST BLACK CRIMINALS AND THE GANGSTA RAP THAT SEEMS TO GLORIFY VIOLENCE THE BLACK CAUCUS AND OTHERS SAY THE SENATE BILL IS TOO CONCERNED WITH PUNISHMENT AND NOT ENOUGH CONCERNED WITH THE ALLEVIATION OF THE CONDITIONS THAT CAUSE CRIME THE STRONG OPPOSITION TO THE MEASURE PRESENTS A PROBLEM FOR PRESIDENT CLINTON WHOSE SUPPORT FOR THE LEGISLATION PLACES HIM AT ODDS WITH A CORE GROUP OF DEMOCRATS WHO ELECTED HIM CITING MR CLINTON'S EMBRACE OF ONE PROVISION OF THE SENATE BILL MANDATORY LIFE SENTENCES FOR CRIMINALS CONVICTED OF THREE VIOLENT FELONIES THE DEAN OF THE BLACK CAUCUS DEMOCRATIC REP JOHN CONYERS OF MICHIGAN DECRIES THE LOCK'EM UP AND THROW AWAY THE KEY APPROACH THAT ONLY FOOLS THE PUBLIC INTO BELIEVING THAT WE'RE DOING SOMETHING ABOUT CRIME THE WHITE HOUSE WILL TRY TO ASSUAGE AT LEAST SOME OPPONENTS' CONCERNS AS CONGRESS UNDERTAKES TO RECONCILE THE SENATE BILL WITH A MUCH DIFFERENT HOUSE MEASURE JUSTICE DEPARTMENT OFFICIALS WHO WERE CRITICIZED FOR NOT VISIBLY EXERTING INFLUENCE OVER THE SENATE BILL LAST YEAR WILL PLAY A MORE OVERT ROLE IN REMOVING OR MODIFYING THE MORE EXTREME PROVISIONS THIS YEAR DEPUTY ATTORNEY GENERAL PHILIP HEYMANN PLANS TO TESTIFY AT HOUSE CRIME LEGISLATION HEARINGS AND MR CLINTON HIMSELF HELD OUT THE CARROT OF HELP TO ENDANGERED YOUTH IN HIS SPEECH TO CONGRESS WE HAVE GOT TO STOP POINTING OUR FINGERS AT THESE KIDS WHO HAVE NO FUTURE HE SAID AND REACH OUR HANDS OUT TO THEM THE QUESTION THOUGH IS WHETHER ENOUGH CHANGES CAN BE MADE TO THE BILL TO SOFTEN OPPOSITION TO IT IN ADDITION TO THE BLACK CAUCUS A RANGE OF OTHERS INCLUDING THE AMERICAN BAR ASSOCIATION THE AMERICAN CIVIL LIBERTIES UNION THE NATIONAL CONFERENCE OF STATE LEGISLATORS AND MANY FEDERAL JUDGES AND PROSECUTORS OPPOSE STRINGENT SENTENCING PROVISIONS IN THE BILL OTHER LESS CONTROVERSIAL PROVISIONS IN THE 223 BILLION LEGISLATION INCLUDE AUTHORIZATION FOR 100000 ADDITIONAL POLICE OFFICERS DRUG TREATMENT AND OTHER CRIMEPREVENTION PROGRAMS SOME BLACK LEADERS SUCH AS THE LEADERSHIP OF THE NATION OF ISLAM HAVE LONG SPOKEN OUT AGAINST CRIME AND FOR THE KIND OF VALUES THAT MAKE IT UNACCEPTABLE BUT THE MAINSTREAM CIVILRIGHTS LEADERSHIP GENERALLY AVOIDED THE RHETORIC OF LAW AND ORDER REGARDING IT AS A CODE FOR KEEPING BLACKS BACK LAW AND ORDER DIDN'T MEAN JUSTICE MR JACKSON USED TO SAY BUT JUST US IN THE PAST MANY WERE HESITANT TO SPEAK ABOUT CRIME IN PUBLIC BECAUSE THE LARGER COMMUNITY WOULD TALK ABOUT 'LOCK THEM UP AND THROW THE KEY AWAY' AND HIDE BEHIND BLACK LEADERS IN DOING IT EXPLAINS REP CRAIG WASHINGTON THE HOUSTON DEMOCRAT WHO LED THE CAUCUS HEARING NOW THERE IS ESCALATING DISCOURSE WITHIN THE BLACK COMMUNITY ABOUT WHAT IT CAN AND MUST DO TO STOP CRIME JUST AFTER THE NEW YEAR MR JACKSON HELD THE FIRST OF SEVERAL CONFERENCES FOCUSING ON JUST THAT THE PREMIER CIVILRIGHTS ISSUE OF THIS DAY IS YOUTH VIOLENCE IN GENERAL AND BLACKONBLACK VIOLENCE IN PARTICULAR HE HAS SAID HIS CONFERENCE ALSO NOTED THE STRUCTURAL CONDITIONS THAT ENCOURAGE CRIME THE SORRY STATE OF THE BLACK ECONOMY HIGH UNEMPLOYMENT POOR EDUCATION AND A LEGACY OF RACISM THE BLACK LEADERS RECOGNIZE THAT IF THEY DON'T STEP OUT FRONT AND ENGAGE IN THE DISCUSSION THAT BASICALLY OUR YOUNG PEOPLE ARE TURNING THEMSELVES INTO SLAVES SAYS REP WASHINGTON WITHIN THE BLACK COMMUNITY THERE IS MORE PUBLIC CONCERN AND DEBATE ABOUT THE APPROPRIATE LEVEL OF RESPONSE TO INCREASING CRIME AND VIOLENCE MANY OF THE BLACK LEADERS INVOLVED IN THE GROWING DEBATE RETAIN STRONG OBJECTIONS TO THE SENATE BILL WITH ITS LARGE NUMBER OF MANDATORY MINIMUM SENTENCES DEATH PENALTIES AND FEDERALIZATION OF LOCAL CRIMES ONE OF THE SENATE MEASURES STRONGLY OPPOSED BY MOST MEMBERS OF THE BLACK CAUCUS HAS AS ITS AUTHOR ONE OF ITS OWN ILLINOIS DEMOCRATIC SEN CAROL MOSELEYBRAUN HER AMENDMENT WOULD RESTRICT PROSECUTORIAL DISCRETION A POINT OPPOSED BY ATTORNEY GENERAL JANET RENO BY DIRECTING US ATTORNEYS TO PROSECUTE AS ADULTS 13YEAROLDS CHARGED WITH COMMITTING VIOLENT CRIMES WITH FIREARMS THE PROVISION WOULD FEDERALIZE MANY CRIMES CURRENTLY PROSECUTED BY THE STATES YET NOTES FEDERAL JUDGE MARYANNE TRUMP BARRY OF NEWARK NJ WHO IS CHAIRWOMAN OF THE CRIMINAL LAW COMMITTEE OF THE JUDICIAL CONFERENCE OF THE US THERE IS NO FEDERAL JUVENILE JUSTICE SYSTEM TO HANDLE SUCH CASES NO FEDERAL JUVENILE PRISONS FOR INSTANCE AND NO FEDERAL YOUTH PROBATION OFFICERS THE NATIONAL CONFERENCE OF STATE LEGISLATURES IS SO OPPOSED TO THE FEDERALIZATION OF STATE CRIMES ANOTHER PROVISION IN THE BILL PUSHED BY GOP SEN ALFONSE D'AMATO OF NEW YORK WOULD FEDERALIZE ALL VIOLENT HANDGUN CRIMES THAT IT RECENTLY WROTE PRESIDENT CLINTON TO SAY THE SENATE BILL IS INIMICAL TO PRINCIPLES OF FEDERALISM AND WE MUST OPPOSE IT AND A MEASURE THAT WOULD REQUIRE STATES TO ADOPT CERTAIN FEDERAL SENTENCING GUIDELINES SUCH AS MANDATORY MINIMUM SENTENCES TO GET FEDERAL PRISON BUILDING FUNDS IS COERCIVE POLICY COMPLAINS JON FELDE NCSL'S GENERAL COUNSEL THERE ARE NUMEROUS MANDATORY MINIMUM PROVISIONS IN THE LEGISLATION THAT MR WASHINGTON FEARS COULD BE USED IN AN UNFAIR FASHION AGAINST BLACKS WHO MAY BE CHARGED MORE HARSHLY THAN WHITES FOR SIMILAR ACTS AND FEDERAL JUDGES HAVE CONSISTENTLY VEHEMENTLY AND VIRTUALLY UNANIMOUSLY OPPOSED MANDATORY MINIMUM SENTENCES JUDGE BARRY WROTE TO SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN DEMOCRAT OF DELAWARE IN NOVEMBER OTHER MEASURES THAT CAUCUS MEMBERS SAY COULD BE USED IN A DISCRIMINATORY WAY ARE THOSE THAT WOULD MAKE IT A FEDERAL CRIME TO CONSPIRE TO PARTICIPATE IN A CRIMINAL STREET GANG AND THAT PROVIDES THE DEATH PENALTY FOR DRUG KINGPINS EVEN IF NO DEATH CAN BE SHOWN TO HAVE RESULTED DIRECTLY FROM THEIR ILLEGAL ACTIVITY THE JUSTICE DEPARTMENT HAS WARNED CONGRESS THAT IT THINKS THE DRUGKINGPIN PROVISION IS UNCONSTITUTIONAL THE ANTIGANG MEASURE WILL ALSO BE HIT ON CONSTITUTIONAL GROUNDS IN THE HOUSE BUT SEN BIDEN INSISTS THAT THE FINAL LEGISLATION WILL INCLUDE ENOUGH SIGNIFICANT PREVENTION AND PUNISHMENT PROVISIONS THAT LIBERALS AND CONSERVATIVES ALIKE WILL BE ABLE TO ENDORSE IT AFTER ALL HE SAYS EVERYBODY IS KIND OF SINGING FROM THE SAME HYMNAL ON THE BROAD STROKES SEE RELATED LETTER LETTERS TO THE EDITOR NATION OF ISLAM'S SERMONS OF HATRED WSJ MARCH 10 1994 9401270105 YY94 MM03 9403090175 940309 INTERNATIONAL JAPAN'S STEELMAKERS' EARNINGS ESTIMATES LOOK DIM FOR YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S BIG 5 STEEL COMPANIES YESTERDAY RELEASED A SET OF MISERABLE EARNINGS ESTIMATES FOR THE CURRENT FISCAL YEAR AND ANALYSTS SAY A RETURN TO PROFITABILITY IS AT LEAST A YEAR AWAY EVEN UNDER THE MOST OPTIMISTIC OF ASSUMPTIONS EACH OF THE FIVE COMPANIES NIPPON STEEL CORP KAWASAKI STEEL CORP NKK CORP KOBE STEEL LTD AND SUMITOMO METAL INDUSTRIES LTD ESTIMATED A PRETAX LOSS IN THE FISCAL YEAR ENDING MARCH 31 WITH THE FIGURES RANGING FROM FOUR BILLION YEN 378 MILLION FOR KOBE STEEL TO 34 BILLION YEN FOR SUMITOMO METAL INDUSTRIES AND FOR THE FIRST TIME IN POSTWAR HISTORY FOUR OF THE FIVE ELIMINATED THEIR YEAREND DIVIDENDS ONLY NIPPON STEEL OFFERED SHAREHOLDERS A YEAREND PAYOUTOF 250 YEN BUT ANALYSTS TERMED THE MOVE A SYMBOLIC ONE NEWSPAPER REPORTS IN RECENT WEEKS HAVE SPECULATED THAT THE COMPANIES WOULD HAVE TROUBLE PAYING OUT ANY DIVIDEND THIS YEAR AND THE EARNINGS ESTIMATES MET EXPECTATIONS BUT IN MOVES WHICH ANALYSTS SAY COULD HELP IN THE LONG RUN KOBE STEEL AND SUMITOMO METAL INDUSTRIES ANNOUNCED A BROADENING OF PREVIOUS RESTRUCTURING AND COSTCUTTING PLANS KOBE STEEL SAID IT WILL CUT ITS WORK FORCE BY 19 BY MARCH 1996 AND SLASH CAPITAL INVESTMENT BY 57 IN THE THREEYEAR PERIOD ENDING MARCH 1996 A KOBE STEEL SPOKESMAN SAID THE MOVE MAY HELP THE COMPANY REACH A GOAL OF TURNING A PROFIT IN THE FISCAL YEAR BEGINNING IN APRIL 1995 SUMITOMO METAL INDUSTRIES ANNOUNCED A SIMILAR PLAN UNDER WHICH IT INTENDS TO CUT ITS WORK FORCE BY 4300 PEOPLE OVER THREE YEARS TO 15000 AND REDUCE CAPITAL INVESTMENT TO 210 BILLION YEN IN THE THREE YEARS THROUGH MARCH 1996 JAPAN'S BIG STEEL COMPANIES HAVE BEEN HAMPERED BY HUGE EXCESS CAPACITY AND ANALYSTS SAY SHARP CUTS IN CAPITAL EXPENDITURES ARE ESSENTIAL IF THEY ARE TO HAVE ANY CHANCE TO CONTROL THEIR HUGE COSTS DESPITE COST CUTTING ANALYSTS ARE DOUBTFUL ABOUT A RETURN TO PROFITABILITY IN THE NEAR TERM BASIL MASTERS AN ANALYST WITH KLEINWORT BENSON INTERNATIONAL SAYS IT WILL BE VERY DIFFICULT FOR THE COMPANIES TO TURN A PROFIT IN THE COMING FISCAL YEAR UNDER THE BEST ASSUMPTIONS COMPANIES COULD POST BETTER RESULTS WHICH MEANS BETTER LOSSES HE SAYS 9403090174 940309 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 AVNET INC 100 MILLION OF SENIOR NOTES DUE MARCH 15 2004 PRICED AS 6875S AT 9977 TO YIELD 6907 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO COGENTRIX INC 100 MILLION OF SENIOR NOTES DUE MARCH 15 2004 PRICED AT PAR TO YIELD 81 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 175 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE MARCH 15 2004 PRICED INITIALLY AT PAR TO YIELD 678 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO KFW INTERNATIONAL FINANCE INC DELAWARE 250 MILLION OF GUARANTEED NOTES DUE MARCH 15 2014 PRICED AS 72S AT 99525 TO YIELD 7245 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 34 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KFW INTERNATIONAL FINANCE IS A UNIT OF THE GERMAN PUBLICSECTOR INVESTMENT FINANCING AGENCY KREDITANSTALT FUER WIEDERAUFBAU PUBLIC SERVICE ELECTRIC & GAS CO 175 MILLION OF FIRSTMORTGAGE BONDS PRICED THROUGH A COMPETITIVE BID WON BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE BONDS DUE MARCH 1 2006 WERE PRICED AS 675S AT 98771 TO YIELD 6902 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P PSE&G IS A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP WACHOVIA BANK OF NORTH CAROLINA NA 125 MILLION OF MEDIUMTERM NOTES PRICED THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC THE FIRST TRANCHE 75 MILLION OF NOTES DUE MARCH 15 1999 WAS PRICED AS 6S AT 99592 TO YIELD 61 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 50 MILLION OF NOTES DUE MARCH 14 1997 WAS PRICED AS 54S AT 99688 TO YIELD 552 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P WACHOVIA BANK IS A UNIT OF WACHOVIA CORP WESTERN MASSACHUSETTS ELECTRIC CO 90 MILLION OF FIRSTMORTGAGE BONDS PRICED THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 40 MILLION OF BONDS DUE MARCH 1 1999 WAS PRICED AS 625S AT 99634 TO YIELD 6336 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 50 MILLION OF FIRSTMORTGAGE BONDS DUE MARCH 1 2024 WAS PRICED AS 775S AT 9845 TO YIELD 7885 THE BONDS ARE NONCALLABLE FOR FIVE YEARS AND WERE PRICED AT A SPREAD OF 97 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P WESTERN MASSACHUSETTS IS A UNIT OF NORTHEAST UTILITIES EXIDE CORP 38 MILLION COMMON SHARES OF EXIDE CORP PRICED AT 34 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO NATIONAL WIRELESS HOLDINGS INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1250 EACH THROUGH UNDERWRITERS LED BY RAS SECURITIES CORP USG CORP 125 MILLION COMMON SHARES PRICED AT 29875 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HILLSBOROUGH COUNTY FLA INDUSTRIAL DEVELOPMENT AUTHORITY 130 MILLION OF SERIES 1994 INDUSTRIALDEVELOPMENT REVENUE BONDS FOR A UNIVERSITY HOSPITAL SOLD VIA A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 29 IN AUGUST TO 6 IN 2024 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MARYLAND COMMUNITY DEVELOPMENT ADMINISTRATION 100 MILLION OF REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 34 IN 1995 TO 59 IN 2014 MOODY'S HAS RATED THE BONDS DOUBLEA NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY 243 MILLION OF FISCAL 1994 SERIES F WATER AND SEWER SYSTEM REVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP ACCORDING TO MCM CORPORATEWATCH INCLUDED IS 140 MILLION OF NEWMONEY BONDS REOFFERED BONDS ARE PRICED TO YIELD 585 IN 2020 AND 2023 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P YIELDS FOR THE 103 MILLION OF REFUNDING BONDS RANGE FROM 48 IN 1999 TO 575 IN 2015 FOR THIS PORTION OF THE ISSUE BONDS DUE IN 201012 ARE INSURED BY AMBAC INDEMNITY CORP AND BONDS DUE IN 2015 ARE MBIAINSURED THE UNINSURED SECURITIES HAVE SINGLEA RATINGS FROM MOODY'S AND FITCH INVESTORS SERVICE INC AND A SINGLEAMINUS RATING FROM S&P SANTA ANA CALIF FINANCING AUTHORITY 108 MILLION OF SERIES 1994A LEASE REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP ACCORDING TO MCM CORPORATEWATCH YIELDS RANGE FROM 54 IN 2004 TO 59 IN 2024 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITIBANK THE OFFERING SERIES 1714 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING REMIC TRUST 199458 IS BACKED BY BOTH THE PRINCIPAL AND INTERESTONLY CLASSES OF STRIPS TRUST 255 WHICH IN TURN IS BACKED BY FANNIE MAE'S 15YEAR 65 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING REMIC TRUST 199459 IS BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 338 MONTHS NORTHWEST AIRLINES 175 MILLION OF ASSETBACKED CERTIFICATES PRICED BY SOLE UNDERWRITER PRUDENTIAL SECURITIES INC THE ISSUE IS BACKED BY TRADE RECEIVABLES OWED NORTHWEST AIRLINES AND CARRIES A DOUBLEA RATING FROM FITCH THE ISSUE WAS PRICED AT PAR TO FLOAT 0875 ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 12 CAP THE CERTIFICATES HAVE AN AVERAGE LIFE OF 486 YEARS A BULLET PRINCIPAL PAYMENT WILL BE MADE JAN 25 1999 THE CERTIFICATES PAY AND RESET MONTHLY AND WERE OFFERED IN THE PRIVATEPLACEMENT MARKET UNDER THE SECURITIES AND EXCHANGE COMMISSION'S RULE 144A DEUTSCHE BANK FINANCE NV CURACAO GERMAN PARENT 100 BILLION ITALIAN LIRE OF 825 EUROBONDS DUE JAN 7 2004 AT ISSUE AND REOFFER PRICE 9936 VIA DEUTSCHE BANK AG BONDS TRADE INTERCHANGEABLY WITH 200 BILLION LIRE OF OUTSTANDING IDENTICAL BONDS GUARANTOR DEUTSCHE BANK AG FEES TWO SAKURA BANK LTD JAPAN 100 BILLION YEN OF NONCUMULATIVE MANDATORILY CONVERTIBLE PREFERENCE SHARES DUE OCT 1 1997 ISSUE SPLIT INTO 50 BILLION YEN DOMESTIC TRANCHE VIA NOMURA SECURITIES CO AND 50 BILLION YEN INTERNATIONAL TRANCHE VIA GOLDMAN SACHS INTERNATIONAL AND NOMURA INTERNATIONAL PLC INDICATED SEMIANNUAL COUPON OR DIVIDEND YIELD OF 225 TO 25 ISSUE PRICE 2000 YEN PER PREFERENCE SHARE CONVERTIBLE INTO ORDINARY SAKURA SHARES AT 10 INDICATED PREMIUM TERMS FIXED AROUND MONDAY CONVERTIBLE FROM JULY 1 TO SEPT 30 1997 MANDATORILY CONVERTIBLE OCT 1 1997 AT PREMIUM BASED ON 2000 YEN DIVIDED BY AVERAGE CLOSING PRICE OF SAKURA ORDINARY SHARES OVER 30 CONSECUTIVE TRADING DAYS BEGINNING 45 TRADING DAYS BEFORE MATURITY FEES 25 SHARP CORP JAPAN 700 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 31 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0125 COUPON AT PAR VIA CREDIT SUISSE WARRANTS EXERCISABLE FROM APRIL 11 TO MARCH 20 1998 AT EXPECTED PREMIUM 25 TERMS FIXED TOMORROW FEES 1625 NATIONAL BANK OF HUNGARY HUNGARY TWO BILLION LUXEMBOURGIAN FRANCS OF 8875 EUROBONDS DUE APRIL 12 2001 AT ISSUE PRICE 1019 VIA BANQUE ET CAISSE D'EPARGNE DE L'ETAT FEES 1875 OHKI CORP JAPAN 50 MILLION OF PRIVATELY PLACED NOTES DUE MARCH 24 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 125 COUPON AT PAR VIA FUJI BANK SCHWEIZ AG WARRANTS EXERCISABLE FROM APRIL 7 TO MARCH 16 1998 TO PURCHASE COMPANY SHARES FEES STANDARD 9403090173 940309 INTERNATIONAL SKETCHY PROFIT DATA OF HOECHST BASF INDICATE AN UPTURN SPECIAL TO THE WALL STREET JOURNAL FRANKFURT SKETCHY 1993 EARNINGS INFORMATION FROM GERMANY'S HOECHST AG AND BASF AG CHEMICAL GROUPS SEEMS TO CONFIRM THE PICTURE OF AN INDUSTRY ON THE VERGE OF A CYCLICAL UPTURN ANALYSTS SAID WHILE THE NUMBERS WERE OVERALL SLIGHTLY BETTER THAN EXPECTED BASF'S FOURTHQUARTER RESULT STOOD OUT FROM THE REST EXTRAPOLATING FROM THE 1993 REPORT ANALYSTS ESTIMATE THE GROUP'S PRETAX PROFIT JUMPED TO 451 MILLION MARKS FROM 156 MILLION MARKS 2621 MILLION FROM 907 MILLION A YEAR AGO THAT IS A SURPRISE SAID MICHAEL STONE GERMAN CHEMICALS ANALYST AT SG WARBURG IN LONDON UNFORTUNATELY WE WILL HAVE TO WAIT AND SEE WHY WHEN THEY RELEASE MORE DETAILS ALTHOUGH BOTH ANNOUNCED DIVIDEND CUTS AND LOWER PRETAX PROFITS THAT WASN'T SEEN AS A DISAPPOINTMENT BASF SAID IT WOULD CUT ITS 1993 DIVIDEND TO EIGHT MARKS A SHARE FROM THE PREVIOUS 10 MARKS ITS 1993 GROUP PRETAX PROFIT FELL 15 TO 106 BILLION MARKS WHILE GROUP SALES FELL 33 TO 406 BILLION MARKS HOECHST'S 1993 DIVIDEND FELL BELOW BASF'S AS THE GROUP CUT IT TO SEVEN MARKS A SHARE FROM THE PREVIOUS NINE MARKS THE GROUP'S 1993 PRETAX PROFIT DROPPED 42 TO 123 BILLION MARKS ON A 04 RISE IN SALES TO 4605 BILLION MARKS ANALYSTS ESTIMATE HOECHST'S FOURTHQUARTER PRETAX PROFIT FELL TO 303 MILLION MARKS FROM 571 MILLION MARKS A YEAR AGO BASF'S GROUP NET PROFIT ROSE JUST UNDER 40 TO 858 MILLION MARKS WHILE HOECHST'S FELL 36 TO 756 MILLION MARKS IN ADDITION TO THE EXPECTED BOOST FROM RISING US DEMAND THE GERMAN CHEMICALS INDUSTRY WILL LIKELY BE HELPED BY A WEAKENING OF THE MARK AGAINST THE DOLLAR WHICH WILL MAKE EXPORTS MORE ATTRACTIVE SAID MATTHIAS WELTICKE ANALYST AT MERCK FINCK & CO IN DUESSELDORF 9403090172 940309 LEISURE & ARTS BOOKSHELF SOLUTIONS THAT MADE THE PROBLEM WORSE BY JAMES L PAYNE AS SOCIAL SCIENTISTS EXPLORE THE WORLD OF PUBLIC POLICY EVER MORE CLOSELY THEY ARE DISCOVERING THAT MURPHY'S LAW IS NOT A JOKE BUT A DISMAYING TRUTH WHEN YOU TRY TO USE GOVERNMENT TO FIX THINGS YOU DON'T GET WHAT YOU EXPECT YOU GET MUDDLES A GOOD ACCOUNT OF HOW THIS LAW OF UNINTENDED CONSEQUENCES WORKS IS GIVEN IN DEBT AND TAXES RANDOM HOUSE 337 PAGES 25 A HISTORY OF AMERICAN FISCAL POLICY BY JOHN H MAKIN AND NORMAN J ORNSTEIN OF THE AMERICAN ENTERPRISE INSTITUTE THE GIST OF THEIR NARRATIVE IS THAT PRACTICALLY ALL THE MAIN FEATURES OF CURRENTDAY AMERICAN FISCAL POLICY REPRESENT MISTAKES MISCALCULATIONS AND INADVERTENT POLICY CONSEQUENCES START WITH THE SOCALLED LESSON OF THE GREAT DEPRESSION THIS PROVED THAT A CAPITALIST ECONOMY WAS INHERENTLY SELFDESTRUCTIVE AND NEEDED THE NURTURING HAND OF GOVERNMENT TO KEEP IT ON AN EVEN KEEL RIGHT NONSENSE SAY THE AUTHORS THE DEPRESSION WAS BROUGHT ON BY GOVERNMENT'S OWN ALMOST INCREDIBLE STEAM OF WRONGHEADED HARMFUL POLICY MOVES THEY WRITE INCLUDING THE FED'S SEVERE RESTRICTION OF THE MONEY SUPPLY THE JACKING UP OF TARIFFS AND THE SHARP INCREASE OF TAX RATES THE SOCIAL SECURITY SYSTEM WHICH EVERYONE NOW REALIZES HAS NO SOCIAL OR ECONOMIC JUSTIFICATION IN ITS PRESENT FORM GREW OUT OF SEVERAL FOLLIES ONE WAS FRANKLIN ROOSEVELT'S DESIRE TO SET UP A SYSTEM NO DAMN POLITICIAN CAN EVER SCRAP TO MAKE HIS PROGRAM IMMORTAL HE ARRANGED THE REGRESSIVE FINANCING THAT FOSTERS THE ILLUSION THAT EVERYONE HAS MADE CONTRIBUTIONS THEY ARE ENTITLED TO GET BACK THEN IN THE 1970S CONGRESS AND THE PRESIDENT STARTED COMPETING OVER WHO COULD MOST SENSITIVELY ADJUST BENEFITS FOR INFLATION NEXT THE IDEA OF INDEXING SOCIAL SECURITY BENEFITS WITH AN AUTOMATIC COSTOFLIVING ADJUSTMENT COLA WAS PROPOSED DON'T LAUGH AS A WAY OF HOLDING DOWN SOCIAL SECURITY BENEFIT INCREASES BUT THE COLA SYSTEM EMPLOYED A FORMULA THAT OVERCORRECTED FOR INFLATION AND WAS ADOPTED JUST BEFORE THE NATION PLUNGED INTO THE EXTREME INFLATION OF THE LATE 1970S WHAT'S THE CAUSE OF ALL THIS MISMANAGEMENT TO SOME EXTENT IT HAS BEEN IGNORANCE OF ELEMENTARY ECONOMIC PRINCIPLES FOR EXAMPLE THE IDEA THAT TAXES HURT THE ECONOMY IS AN EXTREMELY RECENT PERCEPTION IN THE 1930S ROOSEVELT AND CONGRESS HAD NO IDEA THAT CUTTING TAXES MIGHT HELP THEM OUT OF THE DEPRESSION THEIR STRATEGY WAS NEW TAXES AND HIGHER TAX RATES THEY RAISED THE EFFECTIVE FEDERAL TAX RATE 700 BETWEEN 1932 AND 1939 THE FIRST DELIBERATE USE OF A TAX CUT TO COMBAT RECESSION APPEARS TO HAVE COME IN 1953 WHEN EISENHOWER WAS PERSUADED TO ACCEPT ONE BY HIS ADVISER ARTHUR BURNS ANOTHER CAUSE OF POLICY DYSFUNCTION IS CONFUSION MODERN GOVERNMENT HAS APPARENTLY BECOME A MACHINE TOO COMPLICATED FOR HUMAN BEINGS THE AUTHORS ILLUSTRATE THIS AIMLESSNESS BY TRACING THE BUDGET STRUGGLES OF THE EARLY 1980S THIS THE READER WILL REMEMBER WAS WHEN THE REAGAN ADMINISTRATION ROLLED UP ITS SLEEVES TO CARRY OUT ITS CAMPAIGN PLEDGE OF A BALANCED BUDGET IN 1984 AND GOT INSTEAD A TRIPLING OF THE DEFICIT TO 175 BILLION DAVID STOCKMAN DIDN'T BELIEVE TAX CUTS WOULD PAY FOR THEMSELVES BUT THOUGHT HE WAS GOING TO GET BUDGET CUTS TO MATCH THEM JACK KEMP THOUGHT TAX CUTS WOULD PAY FOR THEMSELVES AND THAT BUDGETCUTTING WASN'T NECESSARY ECONOMIC ADVISERS ALAN GREENSPAN AND MARTIN ANDERSON PREDICTED BUDGET SURPLUSES ASSUMING NO INDEXING OF TAX BRACKETS A SHADOWY FEMALE KNOWN AS ROSY SCENARIO CARESSED MANY ADMINISTRATION OFFICIALS INTO A FALSE SENSE OF SECURITY WITH PREDICTIONS OF UNREALISTIC 5 GROWTH OVER AT THE FEDERAL RESERVE THE MONEY SUPPLY WAS BEING RESTRAINED PRODUCING A RECESSION THAT KNOCKED ALL THE PROJECTIONS INTO A COCKED HAT EVEN THE OVERALL SIZE OF THE BUDGET APPEARS TO RESPOND TO NO DELIBERATE CAUSE OR RATIONAL PURPOSE ACCORDING TO THE AUTHORS IT IS MAINLY THE UNINTENDED RESULT OF GOVERNMENT BUILDUP IN WAR COUPLED WITH A LET'SSPENDITSINCEWEHAVEIT IMPULSE THAT TAKES OVER WHENEVER POLITICIANS NOTICE AN EXTRA DIME OR EVEN A FALSE PROJECTION OF AN EXTRA DIME IN THE TREASURY STRANGELY THE AUTHORS IGNORE PRESSUREGROUP POLITICS AND GOVERNMENT'S OWN PROGOVERNMENT PROPAGANDA MACHINE AS FACTORS INFLUENCING THE LEVEL OF SPENDING THEY ALSO SEEM TO IGNORE THE UNDERLYING IMPLICATIONS OF THEIR FINDINGS IF GOVERNMENT POLICYMAKING TENDS TO PRODUCE MESSES ISN'T THE RATIONAL RESPONSE TO AVOID USING IT TO DEEMPHASIZE IT AS BELTWAY LOYALISTS THE AUTHORS CAN'T BRING THEMSELVES TO QUESTION WASHINGTON'S ASSUMPTION OF OMNIPOTENCE THEY WANT US TO SOLDIER ON WITH BUSINESSASUSUAL AND REJECT THE IDEA THAT THE SYSTEM NEEDS STRUCTURAL REFORM TERM LIMITS IS REJECTED WITHOUT EXPLANATION TO DEMONSTRATE THEIR FAITH IN THE SYSTEM THEY PRESENT THEIR OWN SHOPPING LIST OF PROGRAM MODIFICATIONS THEIR SUGGESTIONS ARE NO DOUBT SENSIBLE UNTIL YOU REMEMBER THAT EVERY POLICY DISASTER IN THE PAST HALFCENTURY STARTED OUT AS SOMEONE'S SENSIBLE IDEA MR PAYNE DIRECTOR OF LYTTON RESEARCH AND ANALYSIS IN SANDPOINT IDAHO IS THE AUTHOR OF COSTLY RETURNS THE BURDENS OF THE US TAX SYSTEM 9403090171 940309 INTERNATIONAL SPANISH CAR SALES ARE UP MADRID SPANISH NEWCAR SALES ROSE 61 IN FEBRUARY FROM FEBRUARY 1993 TO 61906 UNITS FROM 58329 UNITS THE SPANISH ASSOCIATION OF CAR MAKERS OR ANFAC SAID 9403090170 940309 WHO'S NEWS TELULAR CORP TELULAR CORP BUFFALO GROVE ILL THE TELECOMMUNICATIONS CONCERN NAMED JOHN A BLANCHARD III 51 YEARS OLD A DIRECTOR MR BLANCHARD EXECUTIVE VICE PRESIDENT OF CHICAGOBASED GENERAL INSTRUMENT CORP SUCCEEDS MARK R WARNER WHO RESIGNED FROM THE EIGHTMEMBER BOARD 9403090169 940309 TVI'S CONTRACT FROM SINGAPORE BELTSVILLE MD TVI CORP GOT A 4 MILLION ORDER FROM THE SINGAPORE GOVERNMENT FOR ITS PATENTED QUICKERECT SHELTERS THE ORDER FOR 420 SHELTERS TO BE USED BY SINGAPORE'S ARMY AND AIR FORCE IS EXPECTED TO BE DELIVERED WITHIN SIX MONTHS THE COMPANY SAID 9403090168 940309 WHO'S NEWS POLYMEDICA INDUSTRIES INC POLYMEDICA INDUSTRIES INC WOBURN MASS DR FRANK W LOGERFO 53 YEARS OLD CHIEF OF VASCULAR SURGERY AT NEW ENGLAND DEACONESS HOSPITAL AND PROFESSOR OF SURGERY AT HARVARD MEDICAL SCHOOL WAS ELECTED TO THE BOARD OF THIS MEDICAL PRODUCTS COMPANY HE SUCCEEDS PETER F BERNARDONI WHO RESIGNED 9403090167 940309 WHO'S NEWS PHYCOR INC PHYCOR INC NASHVILLE TENN PAUL H KECKLEY WAS NAMED A DIRECTOR OF THIS MEDICALCLINIC OPERATOR INCREASING BOARD MEMBERSHIP TO 12 MR KECKLEY 44 YEARS OLD IS PRESIDENT OF KECKLEY GROUP A HEALTHCARE MARKET RESEARCH AND PLANNING CONCERN BASED IN NASHVILLE 9403090166 940309 TREASURY PLANS TO SELL 2520 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 725 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 2520 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2447 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS WHICH WILL BE DATED MARCH 17 AND WILL MATURE JUNE 16 AND SEPT 15 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794L28 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N34 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 9403090165 940309 WHO'S NEWS NICOR INC NICOR INC NAPERVILLE ILL THOMAS L FISHER 49 YEARS OLD WAS NAMED PRESIDENT OF THIS ENERGY AND NATURALGAS DISTRIBUTION COMPANY EFFECTIVE MAY 1 MR FISHER WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NICOR'S NORTHERN ILLINOIS GAS UNIT SUCCEEDS RICHARD G CLINE 58 WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9403090164 940309 YIELDS ON MOST CDS ROSE IN WEEKLY SURVEY NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS MOSTLY ROSE A BIT IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS ROSE TO 293 FROM 287 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 463 FROM 458 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 323 FROM 328 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 474 FROM 466 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCREASED TO 311 FROM 302 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 499 FROM 489 ACCORDING TO BANXQUOTE 9403090163 940309 MERRYGOROUND OPENS OFFICE NEW YORK MERRYGOROUND ENTERPRISES INC OPENED A BUYING OFFICE IN NEW YORK THE CLOTHING CONCERN SAID IT WILL USE THE NINESHOWROOM OFFICE TO SEE 200 TO 300 VENDORS A WEEK 9403090162 940309 WHO'S NEWS WM WRIGLEY JR CO WM WRIGLEY JR CO CHICAGO DONALD E BALSTER 50 YEARS OLD FORMERLY SENIOR DIRECTOR US PRODUCTION WAS NAMED VICE PRESIDENT PRODUCTION OF THIS MAKER OF CHEWING GUM 9403090161 940309 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED OPTION EXERCISE EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD BASED ON THE PREVIOUS THREE YEARS 9403090160 940309 WHO'S NEWS SHUTZER QUITS LEHMAN BROTHERS NEW YORK A HIGHRANKING LEHMAN BROTHERS INC MANAGING DIRECTOR QUIT THE FIRM TO HEAD THE INVESTMENT BANKING DIVISION OF FURMAN SELZ INC A SMALL INVESTMENT FIRM WILLIAM A SHUTZER 46 YEARS OLD JOINS FURMAN SELZ AS AN EXECUTIVE VICE PRESIDENT HE SUCCEEDS BRIAN P FRIEDMAN 38 YEARS OLD WHO HAS BEEN NAMED PRESIDENT OF A NEW MERCHANTBANKING DIVISION FURMAN SELZ INVESTMENTS INC MR SHUTZER WAS A MEMBER OF LEHMAN BROTHERS' MANAGEMENT COMMITTEE HANDLED TOP INDUSTRIAL CLIENTS AND PREVIOUSLY WAS DEPUTY CHAIRMAN OF SHEARSON LEHMAN'S MERGERS AND ACQUISITIONS DEPARTMENT LEHMAN BROTHERS IS A UNIT OF AMERICAN EXPRESS CO 9403090159 940309 POLITICS & POLICY A BLACK SENATE HOPEFUL WHEAT TRIES TO BUILD BRIDGES BETWEEN RACES ON TREACHEROUS TERRAIN BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL ST CHARLES MO THREE BLOCKS FROM THE SPOT WHERE BLACK SLAVES WERE ONCE AUCTIONED OFF TO WHITE BIDDERS A BLACK MAN IS TELLING HIS MOSTLY WHITE AUDIENCE WHY HE SHOULD BE MISSOURI'S NEXT SENATOR THE SCENE IS HISTORY MADE VISIBLE FRENCH FURTRADERS LEWIS AND CLARK DANIEL BOONE EVEN AARON BURR ALL HAVE LEFT THEIR MARKS ON THIS OLD MISSOURI RIVER TOWN JUST NORTHWEST OF ST LOUIS NOW ALAN WHEAT IS HERE SEEKING TO MAKE HISTORY HIMSELF MR WHEAT A DEMOCRAT IS TRYING TO BECOME THE FIRST BLACK TO WIN A MISSOURI STATEWIDE ELECTION IF SUCCESSFUL A TALL ORDER HE'D SUCCEED GOP SEN JOHN DANFORTH WHO IS RETIRING MISSOURI WITH ITS DEMOCRATIC LITTLE DIXIE BALANCED AGAINST ITS GOP OZARK HIGHLANDS AND ITS RURAL COUNTRYSIDE COUNTERWEIGHTING ITS BIG CITIES HAS LONG BEEN A NATIONAL MICROCOSM MR WHEAT'S BID IS FURTHER EVIDENCE OF THE GRADUAL NATIONAL EMERGENCE OF A NEW KIND OF BLACK CANDIDATE NOT SIMPLY A REPRESENTATIVE OF BLACK AMERICA BUT A BRIDGEBUILDER BETWEEN BLACK AND WHITE AMERICA AT THE AGE OF 42 HE HAS WON SIX HOUSE ELECTIONS IN A KANSAS CITYAREA DISTRICT THAT IS 73 WHITE HE ENTERED POLITICS NOT AS A CIVILRIGHTS LEADER BUT AFTER A STINT WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HE'S A BLUESUIT KIND OF GUY MORE EARNEST THAN ELOQUENT MORE CEREBRAL THAN INSTINCTIVE I HAD TO LEARN POLITICS HE LAUGHS IN AN INTERVIEW HERE POLICY IS WHAT I THINK I KNOW CONFIRMING A PUBLISHED ACCOUNT REP WHEAT SAYS THAT WHEN HE FIRST RAN FOR CONGRESS HE ASKED A PSYCHOLOGIST FRIEND TO CRITIQUE HIS STUMP STYLE ALAN THE FRIEND CONCLUDED WHEN YOU'RE THINKING YOU LOOK MEAN SMILE SO NOW HE SMILES SPEAKING HERE HIS HANDS MAKING LITTLE STEEPLES IN FRONT OF HIS SUIT JACKET HIS TALK IS LACED WITH SELFDEPRECATORY STORIES THAT DRAW HIS AUDIENCE IN AND PUT IT AT EASE HE TELLS ABOUT THE TIME HE WAS INTRODUCED AS A MODEL CONGRESSMAN AND HIS WIFE YOLANDA REMINDED HIM THAT A MODEL IS BY DEFINITION A SMALL REPRESENTATION OF THE REAL THING HE TALKS ABOUT THE TIME THAT EXASPERATED BY THE PROLONGED DELAY OF A TAX REFUND HE CALLED THE INTERNAL REVENUE SERVICE WRITE YOUR CONGRESSMAN HE WAS ADVISED I AM MY CONGRESSMAN HE SIGHED BUT THE MAIN THRUST OF HIS TALK WITH ITS REPEATED REFERENCES TO HARD WORK AND OPPORTUNITY AND ACHIEVEMENT IS GUTLEVEL MAINSTREAM AMERICA IN AN ERA WHEN THE BLACK FAMILY IS CRUMBLING REP WHEAT CAN POINT TO A HIGHACHIEVING BROTHER AND SISTER AND TALK WITH PRIDE OF HIS PARENTS PARTICULARLY OF A FATHER WHO BEGAN A MILITARY CAREER AS A PRIVATE AND ENDED IT AS A COLONEL HE SHOWED US BY EXAMPLE THAT IN THIS NATION YOU CAN BE ANYTHING YOU WANT TO BE IT'S A CULTURALLY CONSERVATIVE MESSAGE WELLATTUNED TO AN 88 WHITE STATE AND IT HARKENS BACK TO A TIME WHEN CIVIL RIGHTS WAS DEFINED AS EQUALITY OF OPPORTUNITY NOT NECESSARILY EQUALITY OF OUTCOME IT ALSO SOME SUGGEST REPRESENTS A SOFTPEDALING OF ISSUES THAT ARE MORE COMMONLY ASSOCIATED FAIRLY OR UNFAIRLY WITH BLACK OFFICEHOLDERS HE TAKES THE SAFE BUMPERSTICKER ISSUES HUNGER FOR EXAMPLE AND NOT THINGS LIKE PUBLIC HOUSING SAYS CAROL COE A BLACK KANSAS CITY COUNCILWOMAN WITH AN AGGRESSIVE SOMETIMES CONFRONTATIONAL APPROACH TO ISSUES BUT MR WHEAT WHOM SHE IS ABOUT TO ENDORSE HAS LITTLE CHOICE SHE BELIEVES THE MEDIA ARE SO BIASED SO RACIST THAT THEY WOULD MAKE HIM A ONEDIMENSIONAL CANDIDATE IF HE MORE ASSERTIVELY PURSUED BLACK ISSUES SHE SAYS AND WE OF THE BLACK COMMUNITY ARE WILLING TO GIVE HIM WIGGLE ROOM THE GREATER GOOD IS TO BE ELECTED YET THE COMING CAMPAIGN AND THE TREACHEROUS CROSSCURRENTS OF WHAT RACIAL POLITICS HAS BECOME WILL SEVERELY TEST WHETHER REP WHEAT CAN STICK TO HIS CENTRIST TRADITIONALIST THEME FIRST MR WHEAT FACES A POTENTIALLY BRUISING PRIMARY CONTEST WHOSE CONTENDERS INCLUDE A WOMAN BENT ON SHATTERING A STEREOTYPE OF A DIFFERENT KIND MARSHA MURPHY AIMS TO BECOME MISSOURI'S FIRST WOMAN SENATOR COMBINING AN ENGAGING SMILE WITH A SHARP RHETORICAL BITE SHE HAS ALREADY ESTABLISHED HERSELF AS A LOCAL GIANTKILLER IN 1990 SHE KNOCKED OFF A MALE INCUMBENT TO BECOME JACKSON COUNTY KANSAS CITY AREA EXECUTIVE A JOB SIMILAR TO ONE ONCE HELD BY AN UPANDCOMER NAMED HARRY TRUMAN SHE HAS BEEN ENDORSED BY EMILY'S LIST THE WOMEN'S POLITICAL ACTION GROUP AND WILL BENEFIT FROM CONTACTS MADE AS MISSOURI DEPUTY DIRECTOR OF RICHARD GEPHARDT'S 1988 PRESIDENTIAL CAMPAIGN SHE PORTRAYS REP WHEAT AS A TOOLIBERAL WASHINGTON INSIDER ALL THE VOTING RANKINGS PUT HIM AMONG THE MOST LIBERAL MEMBERS OF THE HOUSE SHE SAYS IN HER FORMAL ANNOUNCEMENT SUNDAY SHE ASSAILED CONGRESS AS A GOVERNING ARISTOCRACY ISOLATED AND PRIVILEGED AND WITHOUT MENTIONING REP WHEAT'S NAME REFERRED TO THE 1992 HOUSE BANK CHECK SCANDAL REP WHEAT WAS AMONG THOSE WHO OVERDREW THEIR HOUSE BANK ACCOUNTS THE PRIMARY WINNER WILL FACE A FORMIDABLE FOE THE GOP'S JOHN ASHCROFT ALTHOUGH MRS MURPHY RAPS MR ASHCROFT AS JESSE HELMS WITH MANNERS THAT JUST MIGHT BE A COMBINATION THAT MISSOURIANS LIKE THEY ELECTED HIM TWICE AS GOVERNOR A TWOTERM LIMIT FORCED HIM TO STEP DOWN IN 1992 THE EXGOVERNOR'S GOSPEL SINGING AND CONSERVATIVE VIEWS MAKE HIM ESPECIALLY STRONG IN RURAL MISSOURI MORE FUNDAMENTALLY EVEN AS ALAN WHEAT CAMPAIGNS THE NATIONAL TERRAIN OF RACIAL POLITICS IS SHIFTING BENEATH HIS FEET ON ONE HAND THERE ARE SIGNS THAT BLACK VOTERS MAY BE LOSING FAITH IN POLITICS THE PHENOMENON SHOWED UP CLEARLY IN ERODED BLACK TURNOUT IN LAST YEAR'S NEW JERSEY GUBERNATORIAL RACE WHICH INCUMBENT DEMOCRAT JAMES FLORIO LOST AND IT SEEMED TO CROSS BOTH GENDER AND CLASS LINES THERE OBSERVES POLLSTER GEOFFREY GARIN WHO WORKED FOR MR FLORIO IN A TIME OF ECONOMIC DIFFICULTY SOME BLACK VOTERS HAVE COME TO DOUBT WHETHER ANY OF THIS POLITICS MAKES ANY DIFFERENCE IN THE LONG RUN ON THE OTHER HAND THE BLACK COMMUNITY SEEMS INCREASINGLY RECEPTIVE TO THE RHETORIC OF RACIAL POLARIZATION THAT SHOWS UP IN ITS ATTITUDE TOWARD THE INCENDIARY DECLARATIONS OF LOUIS FARRAKHAN AND HIS NATION OF ISLAM FOLLOWERS IN MIDFEBRUARY A TIME/CNN POLL BY YANKELOVICH PARTNERS INC FOUND THAT 62 OF THE BLACKS FAMILIAR WITH MR FARRAKHAN AND ALMOST THREEFOURTHS OF THEM WERE THOUGHT HE IS GOOD FOR THE BLACK COMMUNITY AND 70 BELIEVE HE SAYS THINGS THE COUNTRY SHOULD HEAR IN AN INTERVIEW HERE REP WHEAT ADMITS SURPRISE WHEN SHOWN THE YANKELOVICH POLL RESULTS BUT HE SAYS RACIST VIEWS ARE REPUGNANT TO ME NO MATTER WHO VOICES THEM HERE IN MISSOURI THE COMMON WISDOM IS THAT REP WHEAT'S LIBERALISM MAY WELL BE MORE OF AN OBSTACLE TO HIS ELECTION THAN HIS RACE ALTHOUGH SOME SUPPORTERS DO WORRY I REALLY HOPE OUTSTATE MISSOURI IS READY FOR AN AFRICANAMERICAN AS SENATOR SAYS TIM BRAUN WHO IS WHITE AT THE TOWN MEETING HERE BLACK SUPPORTERS CLOSING RANKS AREN'T PRESSING MR WHEAT TO GO EVEN FURTHER OUT ON THE LIBERAL LIMB BY EMPHASIZING BLACK ISSUES CLINTON WILLIAMS A BLACK KANSAS CITY ATTORNEY WHO HIMSELF IS WAGING AN OUTSPOKEN CAMPAIGN FOR THE CITY SCHOOL BOARD PUTS IT THIS WAY HE WAS NOT ELECTED AS A BLACK CONGRESSMAN' BUT AS A CONGRESSMAN WHO HAPPENS TO BE BLACK WE UNDERSTAND THE DEMOGRAPHICS PEOPLE IN THE BLACK COMMUNITY ARE PROBABLY THE STRONGEST BELIEVERS IN THE AMERICAN DREAM THEY HAVE TO BE ARGUES REP WHEAT STICKING WITH HIS CENTRIST THEME HE REPEATS THE ADVICE OF HIS OLD POLITICAL MENTOR THE LATE REP RICHARD BOLLING OF MISSOURI JUST CALL ON THE BEST IN PEOPLE IF YOU CALL ON THE BEST YOU'LL GET THEIR BEST AND HE INSISTS THAT MISSOURI'S SENATE CONTEST NOT ONLY CAN BUT MUST TRANSCEND SKIN COLOR IT NOT ONLY DENIGRATES MISSOURI IT DENEGRATES DEMOCRACY TO SAY THAT I CAN'T WIN CLINTON ADAMS JR IS A KANSAS CITY MO ATTORNEY AND SCHOOLBOARD CANDIDATE HIS NAME WAS MISSTATED IN AN ARTICLE ABOUT US SENATE HOPEFUL ALAN WHEAT THAT APPEARED IN YESTERDAY'S POLITICS & POLICY PAGE 9403090158 940309 WHO'S NEWS HOUSEHOLD INTERNATIONAL INC HOUSEHOLD INTERNATIONAL INC PROSPECT HEIGHTS ILL EDGAR ANCONA 41 YEARS OLD FORMERLY A VICE PRESIDENT OF CITIBANK WAS NAMED VICE PRESIDENT TREASURER OF THIS PROVIDER OF FINANCE AND BANKING SERVICES AND CONSUMER INSURANCE AND INVESTMENT PRODUCTS SUCCEEDING DAVID WESSELINK WHO RETIRED LATE LAST YEAR 9403090157 940309 INTERNATIONAL CHINESE CONGRESS'S MEETING WILL FOCUS ON DEPUTY'S MANAGEMENT OF ECONOMY BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINESE PREMIER LI PENG WILL TAKE CENTER STAGE WHEN THE NATIONAL PEOPLE'S CONGRESS OPENS THURSDAY BUT THE EYES OF THE CONGRESS'S 3000 DELEGATES WILL BE ON HIS ECONOMIC CZAR AND FIRST DEPUTY VICE PREMIER ZHU RONGJI AS IN PREVIOUS YEARS THE DELEGATES' MAIN TASK AT THE ANNUAL TWOWEEK MEETING OF CHINA'S PARLIAMENT WILL BE TO RUBBERSTAMP THE GOVERNMENT'S WORK REPORT AND TO PASS NEW LAWS BUT THE INCREASINGLY INDEPENDENTMINDED DELEGATES ARE ALSO EXPECTED TO HAVE MUCH TO SAY ABOUT MR ZHU'S MANAGEMENT OF THE ECONOMY AND HIS RECENT CONTROVERSIAL REFORM INITIATIVES WITH NO MAJOR PERSONNEL RESHUFFLES OR NEW LAWS ON THIS YEAR'S AGENDA THE CONGRESS COULD PROVE TO BE AN INTERESTING BAROMETER FOR THE CREDIBILITY OF THE CENTRAL GOVERNMENT AND SPECIFICALLY THE CLOUT OF MR ZHU THIS TEST OF AUTHORITY COMES AT A TIME WHEN TOP LEADERS ARE SCRAMBLING TO POSITION THEMSELVES FOR A POWER STRUGGLE AHEAD OF THE DEATH OF 89YEAROLD PARAMOUNT LEADER DENG XIAOPING ALL THE LEADERS ARE PLAYING THE GAME NOW IN PREPARATION FOR A SHOWDOWN LATER SAID BYRON WENG OF THE CHINESE UNIVERSITY OF HONG KONG THESE STRUGGLES WILL LARGELY BE PLAYED OUT IN MEETINGS BEHIND CLOSED DOORS LOCAL OFFICIALS ARE CLAMORING FOR FASTER GROWTH AND MORE AUTONOMY THEIR BEIJING COUNTERPARTS WANT TO CHECK DOUBLEDIGIT INFLATION AND MAINTAIN STABILITY TO THAT END OBSERVERS EXPECT MR LI IN HIS THURSDAY REPORT TO THE CONGRESS TO TARGET A GROWTH RATE OF 9 AND AN INFLATION RATE OF UNDER 10 THIS YEAR THE BEIJINGFUNDED WEN WEI PO NEWSPAPER SAID TUESDAY THAT MR LI'S REPORT WOULD CALL FOR A CAP ON NEW INFRASTRUCTURE INVESTMENTS AND ON THE ESTABLISHMENT OF NEW DEVELOPMENT ZONES TWO AREAS THAT HELPED FUEL LAST YEAR'S ECONOMIC OVERHEATING BUT IT WOULD SEEK TO INCREASE FUNDS FOR AGRICULTURE THE HONG KONGBASED DAILY ADDED MANY CHINESE OFFICIALS AND ECONOMISTS BELIEVE THAT CHINA'S GROWTH AND INFLATION RATES WILL EXCEED MR LI'S PREDICTIONS EVERY DEPARTMENT HAS ITS OWN ESTIMATE FOR INFLATION BUT FEW AGREE WITH MR LI'S FIGURE SAID ONE GOVERNMENT OFFICIAL HE ADDED THAT HIS CALCULATIONS SUGGEST THIS YEAR'S NATIONAL INFLATION RATE WON'T BE BELOW LAST YEAR'S 13 GROWTH FOR 1993 ALSO SURGED 13 ALTHOUGH MR ZHU'S POSITION IS SECURE FOR NOW AND THE CONGRESS ISN'T IN A POSITION TO ALTER HIS CONTENTIOUS REFORM PACKAGE IT CAN SHOW HOW STRONG HIS AUTHORITY IS SAID ONE CHINESE ECONOMIST NOW THAT CONFLICTS HAVE COME UP IN THE IMPLEMENTATION OF HIS PROGRAM WE CAN SEE HOW WILLING THE LOCALITIES ARE TO ACCEPT HIS OPINIONS ACCORDING TO THE GOVERNMENT OFFICIAL THERE'S NOT ONE OF MR ZHU'S REFORMS WHERE EVERYONE AGREES AS A RESULT WORK HAS HARDLY BEGUN ON SEVERAL OF THE REFORMS WHICH WERE UNVEILED IN NOVEMBER THESE INCLUDE CHANGES TO REVAMP THE BANKING SYSTEM AND TO REALLOCATE TAX REVENUES AMONG BEIJING AND THE REGIONS AND A NEW CAPITAL GAINS TAX ON PROPERTY SALES ALTHOUGH THE OFFICIAL SAID BEIJING HAS DECIDED TO TAKE A WAITANDSEE AND ADJUSTWHERENECESSARY ATTITUDE OVER REGIONAL REACTIONS TO THE REFORMS SUCH RESISTANCE MUST COME AS A BLOW TO MR ZHU IN EXTENSIVE TOURS AROUND THE COUNTRY LAST YEAR AND OVER THE LUNAR NEW YEAR LAST MONTH THE TOUGH VICE PREMIER CAJOLED BARGAINED AND YELLED TO GET LOCAL LEADERS TO GO ALONG WITH HIS PLAN MR ZHU'S POSITION IS BOTH POWERFUL AND PRECARIOUS WIDELY VIEWED AS THE MOST KNOWLEDGEABLE ABOUT ECONOMICS AMONG THE TOP LEADERSHIP THE 66YEAROLD VICE PREMIER HAS TAKEN ON INCREASING RESPONSIBILITY AS THE ISSUE HAS COME TO DOMINATE THE NATIONAL AGENDA ALTHOUGH MR LI CONTINUES TO OVERSEE OVERALL MANAGEMENT HIS DEPUTY HAS TAKEN CHARGE OF ALMOST ALL ECONOMIC AFFAIRS MR ZHU'S DUTIES INCLUDE HEADING THE CENTRAL BANK TACKLING FINANCIAL AND MONETARY PROBLEMS AND COORDINATING AMONG RELEVANT MINISTRIES THROUGH HIS STATE ECONOMIC AND TRADE COMMISSION DESPITE MR ZHU'S APPARENT INITIAL PLANS TO STEP DOWN AS CENTRAL BANK HEAD THIS MONTH HE SAID RECENTLY THAT HE WILL CONTINUE TO STAY ON FOR THE TIME BEING HE JOKED THAT THE REASON WAS THAT THE POST ISN'T POPULAR NOT MANY PEOPLE WOULD LIKE TO TAKE IT ECONOMISTS SAY MR ZHU WOULD FIRST LIKE TO SEE HIS REFORMS THROUGH MR ZHU'S CONFIDENCE WAS APPARENT DURING A RECENT HIGHPROFILE VISIT TO JAPAN WHERE HE PLEDGED TO BRING CHINA'S INFLATION DOWN TO SINGLE DIGITS BY NEXT YEAR STILL MANY BELIEVE THAT SHOULD THERE BE A SERIOUS ECONOMIC STUMBLE OR A BACKLASH OVER HIS PROGRAMS MR ZHU COULD FIND HIMSELF WITH FEW ALLIES WHILE ONE OFFICIAL WHO WORKS FOR HIM DESCRIBES THE VICE PREMIER AS SHARP SOMEONE WHO UNDERSTANDS ECONOMICS AND QUICKLY GETS TO THE HEART OF AN ISSUE OTHERS CONSIDER HIM ABRASIVE AND INTOLERANT HIS REFORMS HAVE ALIENATED BOTH PROVINCIAL LEADERS WHO LABEL HIM AN ENLIGHTENED CENTRAL PLANNER AND INDUSTRY LEADERS WHO SEE HIM AS A TIGHTFISTED CENTRAL BANKER AND HE HAS NO LINKS TO CHINA'S MILITARY THERE APPEAR TO BE PLENTY OF CHANCES FOR THINGS TO GO WRONG INFLATION RUNNING AT MORE THAN 23 IN MAJOR CITIES HAS BECOME SUCH A PROBLEM THAT BEIJING ON TUESDAY ANNOUNCED A NATIONWIDE INSPECTION OF PRICES STATERUN FACTORIES ESPECIALLY IN THE AUTO AND TEXTILE INDUSTRIES ARE STRUGGLING TO SURVIVE AFTER BEING HIT BY MR ZHU'S CREDIT SQUEEZE LAST YEAR AND NEW TAXES THIS YEAR WORKERS TEACHERS AND CIVIL SERVANTS AREN'T BEING PAID BECAUSE THEIR EMPLOYERS DON'T HAVE MONEY IN SCATTERED INSTANCES SOME HAVE TAKEN TO THE STREETS FOR NOW MR DENG'S DESIGNATED COLLECTIVE LEADERSHIP COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN NATIONAL PEOPLE'S CONGRESS STANDING COMMITTEE CHAIRMAN QIAO SHI AND MESSRS LI AND ZHU APPEARS UNIFIED IN HOW TO TACKLE THESE PROBLEMS THEY ARE LIKELY TO STRONGLY RESIST REBELLIOUS LOCAL LEADERS AND INSIST THAT THEIR ECONOMIC PROGRAM REPRESENTS STABILITY AND SUSTAINABLE GROWTH THIS COULD CHANGE ONCE MR DENG DIES POTENTIALLY SETTING OFF A SCRAMBLE FOR POWER THIS CONCERN HAS TAKEN ON ADDED URGENCY FOLLOWING A TELEVISION APPEARANCE LAST MONTH BY THE PATRIARCH WHO LOOKED WEAK AND SOMETIMES CONFUSED OVER HIS SURROUNDINGS AS HE WAS FILMED TOURING SHANGHAI WITH HIS DAUGHTERS 9403090156 940309 TELEFONICA DE ARGENTINA TRADING NEW YORK TELEFONICA DE ARGENTINA SA ONE OF ARGENTINA'S TWO TELECOMMUNICATIONS AND TELEPHONE COMPANIES ESTABLISHED AN AMERICAN DEPOSITARY RECEIPT PROGRAM AND THE ADRS BEGAN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY EACH DEPOSITARY SHARE REPRESENTS 10 CLASS B ORDINARY SHARES OF TELEFONICA DE ARGENTINA THE ADRS TRADING UNDER THE SYMBOL TAR OPENED AT 8250 AND FINISHED THE DAY AT 7825 9403090155 940309 COMPUTER SCIENCES CONTRACT EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT RECEIVED A FOURYEAR CONTRACT TO PROVIDE ENGINEERING AND INTEGRATION SERVICES TO THE MARINE CORPS SYSTEMS COMMAND AT THE MARINE CORPS BASE IN QUANTICO VA THE COMPANY SAID THE CONTRACT IS VALUED AT 192 MILLION IF ALL OPTIONS ARE EXERCISED COMPUTER SCIENCES SAID IT WILL PROVIDE PROGRAM MANAGEMENT INTEGRATED LOGISTICS AUTOMATED DATA PROCESSING AND DEVELOPMENT AND ENGINEERING SERVICES TO SUPPORT THE ACQUISITION OF AVIATION COMMANDANDCONTROL PROGRAMS FOR THE MARINE CORPS THE COMPANY SAID WORK WILL BE PERFORMED BY THE RECENTLY ACQUIRED PROFESSIONAL SERVICES GROUP 9403090154 940309 WHO'S NEWS CABLEVISION SYSTEMS CORP CABLEVISION SYSTEMS CORP WOODBURY NY ROBERT S LEMLE SENIOR VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT OF THIS CABLE COMPANY MR LEMLE 41 YEARS OLD CONTINUES AS GENERAL COUNSEL AND SECRETARY 9403090153 940309 WHO'S NEWS HALLIBURTON CO HALLIBURTON CO DALLAS KEN R LESUER PRESIDENT OF THIS ENERGY COMPANY'S UNIT HALLIBURTON ENERGY SERVICES WAS ALSO NAMED CHIEF EXECUTIVE OFFICER OF THE UNIT MR LESUER 58 YEARS OLD SUCCEEDS ALAN A BAKER 62 WHO WILL REMAIN CHAIRMAN 9403090152 940309 WHO'S NEWS UTILX CORP UTILX CORP KENT WASH CRAIG E DAVIES 51 YEARS OLD HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER AND A MEMBER OF THE BOARD AT THIS SERVICER OF UNDERGROUND UTILITIES MR DAVIES WHO HAD BEEN CHIEF OPERATING OFFICER AT SITHE ENERGIES INC IN NEW YORK SUCCEEDS GRANVILLE W HOLMAN 64 CHAIRMAN WHO HAD BEEN ACTING PRESIDENT MR DAVIES'S SEAT ON THE BOARD FILLS THE ONE VACATED BY JOHN POTTER 48 FORMER PRESIDENT AND CHIEF EXECUTIVE WHO RESIGNED FROM THE BOARD RECENTLY 9403090151 940309 COSMETIC CENTER SALES UP SAVAGE MD COSMETIC CENTER INC SAID SALES FOR THE MONTH ENDED FEB 25 ROSE 13 TO 95 MILLION FROM 84 MILLION A YEAR AGO SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 THE RETAILER OF COSMETICS FRAGRANCES AND BEAUTY AIDS SAID IT WILL ENTER THE PHILADELPHIA MARKET IN THE SPRING AND THE ATLANTA MARKET THIS SUMMER 9403090150 940309 BUSINESS BRIEF TUESDAY MORNING CORP RETAILER POSTS DROP IN NET OF 85 FOR FOURTH QUARTER HIT HARD BY DISCOUNTING AMONG COMPETING RETAILERS TUESDAY MORNING CORP REPORTED AN 85 DROP IN NET INCOME FOR THE FOURTH QUARTER THE DALLASBASED SPECIALTY RETAILER POSTED NET INCOME OF 979000 OR 11 CENTS A SHARE DOWN FROM NET OF 65 MILLION OR 71 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE SLIGHTLY TO 714 MILLION THE RESULTS WERE FAR BELOW THE ESTIMATES OF INDUSTRY ANALYSTS WHO HAD PROJECTED PROFIT OF ABOUT 40 CENTS A SHARE FOR THE PERIOD TUESDAY MORNING SHARES FELL 125 CENTS APIECE TO 575 IN NASDAQ STOCK MARKET TRADING STEVE HIGGINS PRESIDENT SAID AGGRESSIVE DISCOUNTING BY DEPARTMENT STORES DURING THE CHRISTMAS SELLING SEASON HAD FORCED THE COMPANY TO INCREASE ITS PROMOTIONAL ACTIVITIES AND MORE STEEPLY DISCOUNT ITS OWN MERCHANDISE 9403090149 940309 MESA TO OFFER STOCK DEBT DALLAS MESA INC SAID IT PLANS TO SELL 20 MILLION COMMON SHARES AND WILL ALSO ISSUE DEBT SECURITIES THE TOTAL VALUE OF THE OFFERINGS WASN'T DISCLOSED THE NATURALGAS PRODUCTION COMPANY SAID IT WOULD REGISTER THE STOCK OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION WITHIN 10 DAYS AND THAT MARKET CONDITIONS WILL DETERMINE WHEN THE DEBT SECURITIES WILL BE ISSUED MESA SAID PROCEEDS FROM THE OFFERINGS WILL BE USED PRINCIPALLY TO REPAY DEBT WHICH TOTALS 12 BILLION 9403090148 940309 CONTINENTAL AIRLINES TRAFFIC HOUSTON CONTINENTAL AIRLINES SAID FEBRUARY TRAFFIC FELL 7 FROM A YEAR EARLIER THE CARRIER SAID TRAFFIC DROPPED TO 2766848000 REVENUE PASSENGER MILES FROM 2975623000 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 592 FROM 569 FOR THE YEAR TO DATE TRAFFIC FELL 78 TO 5761775000 REVENUE PASSENGER MILES FROM 6248573000 A YEAR EARLIER LOAD FACTOR ROSE TO 582 FROM 565 9403090147 940309 INTERNATIONAL MOORE CORP UNIT TO RESTRUCTURE SYDNEY AUSTRALIA MOORE BUSINESS SYSTEMS AUSTRALIA LTD A BUSINESSFORMS PRINTING UNIT OF MOORE CORP OF CANADA SAID IT WILL RESTRUCTURE ITS OPERATIONS AND CUT STAFF BY ABOUT 100 MOORE CURRENTLY EMPLOYS 1400 IN AUSTRALIA TIM BAKER MANAGING DIRECTOR OF MOORE IN AUSTRALIA SAID IN A STATEMENT THAT THE COMPANY WILL CLOSE ITS ALEXANDRIA PLANT IN SYDNEY AND UPGRADE PLANTS IN WODONGA AND MOOREBANK TO IMPROVE EFFICIENCY THE RESTRUCTURING FOLLOWS MOORE'S ACQUISITION IN NOVEMBER OF COMPUTER RESOURCES CO A COMPANY THAT PRINTS SHORTRUN COMPLEX BUSINESS FORMS AND TICKETS 9403090146 940309 STAR BANC SETS STOCK BUYBACK CINCINNATI STAR BANC CORP SAID ITS DIRECTORS APPROVED A STOCKREPURCHASE PLAN CALLING FOR THE BUYBACK OF AS MANY AS ONE MILLION COMMON SHARES OVER THE NEXT THREE YEARS THE BANK HOLDING COMPANY SAID IT EXPECTS THAT THE REPURCHASES WILL BE MADE FROM TIME TO TIME IN THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS THE SHARES STAR BANC BUYS BACK WILL BE HELD AS TREASURY SHARES FOR REISSUE IN CONNECTION WITH POTENTIAL CONVERSIONS OF THE COMPANY'S SERIES B PREFERRED STOCK THE STOCK OPTION PLAN OR FOR OTHER GENERAL CORPORATE PURPOSES THE COMPANY SAID STAR BANC WITH ABOUT 76 BILLION IN TOTAL ASSETS CURRENTLY HAS ABOUT 29756000 COMMON SHARES OUTSTANDING 9403090145 940309 INTERNATIONAL POLYGRAM BUYS DUTCH CONCERN AMSTERDAM RECORDING AND FILMED ENTERTAINMENT GROUP POLYGRAM NV SAID IT ACQUIRED DUTCH MOVIE MAKER MOVIES FILM PRODUCTIONS EXERCISING AN OPTION IT ACQUIRED IN MAY 1993 LONDONBASED POLYGRAM 75OWNED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID MFP IS THE LEADING INDEPENDENT FILM PRODUCER AND DISTRIBUTOR IN THE BENELUX COUNTRIES MFP HAS BEEN DISTRIBUTING POLYGRAM FILMS IN THE BENELUX REGION SINCE MID1993 9403090144 940309 WHO'S NEWS WEST MARINE INC WEST MARINE INC WATSONVILLE CALIF HARVEY S DURAND A VICE PRESIDENT AT VONS COS HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT THIS RETAILER OF BOATING SUPPLIES AND APPAREL HE SUCCEEDS RANDY REPASS CHIEF EXECUTIVE OFFICER WHO HAD ASSUMED THOSE POSITIONS ON AN ACTING BASIS ALSO RICHARD E EVERETT A WEST MARINE VICE PRESIDENT HAS BEEN ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO FIVE MEMBERS 9403090143 940309 WHO'S NEWS BARNES GROUP INC BARNES GROUP INC BRISTOL CONN GARY G BENANAV 48 YEARS OLD WAS ELECTED A DIRECTOR AT THIS MAKER OF DURABLEGOODS COMPONENTS FILLING A SLOT LEFT VACANT BY THE RETIREMENT OF CARLYLE F BARNES A DIRECTOR SINCE 1951 MR BENANAV IS AN EXECUTIVE VICE PRESIDENT AT AETNA LIFE & CASUALTY CO 9403090141 940309 WHO'S NEWS SPRINT CORP SPRINT CORP KANSAS CITY MO J DARRELL KELLEY 51 YEARS OLD WAS NAMED PRESIDENT OF SPRINT'S UNITED TELEPHONE AND CENTEL OPERATIONS IN FLORIDA MR KELLEY SUCCEEDS FRED LAWRENCE WHO RESIGNED TO PURSUE OTHER INTERESTS IN ADDITION SPRINT'S UNITED TELEPHONE BUSINESS NAMED TWO PRESIDENTS RANDY OSLER 46 FOR THE NORTH CENTRAL REGION AND STEVE MCMAHON 45 FOR THE NORTHWEST REGION 9403090140 940309 WHO'S NEWS LOCKHEED CORP LOCKHEED CORP CALABASAS CALIF KATHLEEN H ANDERSON 43 YEARS OLD WAS NAMED PRESIDENT OF LOCKHEED FINANCE CORP A WHOLLY OWNED SUBSIDIARY OF THE AEROSPACE AND ELECTRONICS CONCERN MRS ANDERSON SUCCEEDS JAMES T WEST 57 WHO IS RETIRING MRS ANDERSON WAS EXECUTIVE VICE PRESIDENT OF THE UNIT BASED IN BURBANK CALIF 9403090139 940309 TUESDAY'S MARKETS BONDS DROP DEPRESS STOCKS DOLLAR IS DOWN BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL FLAGGING BOND PRICES PUSHED STOCKS LOWER THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 450 POINTS TO 385172 STANDARD & POOR'S 500STOCK INDEX LOST 103 TO 46588 AND THE NASDAQ COMPOSITE INDEX FELL 293 TO 79212 HYPERSENSITIVE BOND TRADERS PUSHED BOND PRICES HIGHER EARLY IN THE DAY WHEN THEY MISINTERPRETED REMARKS BY FEDERAL RESERVE GOV LAWRENCE LINDSEY IN A SPEECH MONDAY NIGHT IN AN OFFHAND VEIN MR LINDSEY COMMENTED THAT SHORTTERM INTEREST RATES WILL BE THREESOMETHING PERCENT THIS YEAR THAT WAS ENOUGH TO ALLAY TEMPORARILY BOND TRADERS' FEARS OF FURTHER RATE BOOSTS BOND PRICES CLIMBED UNTIL AN AIDE FOR MR LINDSEY CLARIFIED THE MATTER THE AIDE SAID LINDSEY THREW IT OUT AS A HUMOROUS REMARK SAID ED NICOSKI CHIEF MARKET STRATEGIST AT PIPER JAFFRAY THAT CAUSED THE BOND MARKET TO SELL OFF STOCK PRICES WERE MOSTLY HIGHER EARLY IN THE SESSION BUT LOST THEIR GAINS AS BOND PRICES FALTERED ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS NOTED THAT THE INDUSTRIAL AVERAGE IS HAVING TROUBLE STAYING ABOVE THE 3850 LEVEL IT WAS BELOW THAT POINT MOST OF DAY ONLY TO POKE ABOVE IT NEAR THE CLOSE OF TRADING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 015 TO 11560 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 298 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1174 ISSUES FELL AND 944 ROSE THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17143 MARKS AND 10537 YEN COMPARED WITH 17195 MARKS AND 10555 YEN MONDAY 9403090138 940309 WHO'S NEWS DSP SOLUTIONS DSP SOLUTIONS PALO ALTO CALIF THOMAS GREAVES 49 YEARS OLD MANAGER OF EDUCATIONAL TECHNOLOGY FOR INTERNATIONAL BUSINESS MACHINES CORP'S EDUQUEST DIVISION WAS NAMED CHIEF EXECUTIVE OF THIS DEVELOPER OF PERSONAL COMPUTER PRODUCTS HE SUCCEEDS MODIE KATZ A MAJOR STOCKHOLDER WHO WILL REMAIN ON THE DSP SOLUTIONS BOARD AND IS STARTING A TECHNOLOGY VENTURE 9403090137 940309 AIG'S CONTAMINATION COVERAGE NEW YORK AMERICAN INTERNATIONAL GROUP INC SAID IT BEGAN OFFERING INSURANCE TO COVER PRODUCT CONTAMINATION FOR THE FOOD BEVERAGE PHARMACEUTICAL TOBACCO AND COSMETICS INDUSTRIES THE INSURANCE AND FINANCIAL SERVICES CONCERN SAID THE NEW POLICY COVERS ACCIDENTAL CONTAMINATION AND/OR MALICIOUS TAMPERING ACCIDENTAL CONTAMINATION COVERAGE HAS A 3 MILLION LIMIT MALICIOUS TAMPERING A MAXIMUM 50 MILLION 9403090136 940309 TIFFANY'S NET INCOME MORE THAN DOUBLED IN FOURTH QUARTER NEW YORK TIFFANY & CO THE JEWELRY AND GIFT SPECIALTY RETAILER REPORTED NET INCOME FOR THE FOURTH QUARTER MORE THAN DOUBLED AS SOFT CORPORATE AND CATALOG SALES WERE OFFSET BY STRONG US RETAIL SALES TIFFANY SAID NET INCOME FOR THE QUARTER ENDED JAN 31 ROSE TO 18 MILLION OR 114 A SHARE FROM 87 MILLION OR 55 CENTS A SHARE FOR THE YEAREARLIER QUARTER SALES ROSE 36 TO 208 MILLION IN THE QUARTER FROM 1524 MILLION IN THE YEAREARLIER QUARTER TIFFANY CHAIRMAN WILLIAM R CHANEY SAID RESULTS WERE SUPPORTED BY AN IMPROVING ECONOMIC CLIMATE THAT HELPED TIFFANY ACHIEVE STRONG US RETAIL RESULTS WHICH ENDED IN A VERY SUCCESSFUL HOLIDAY SEASON BUT MR CHANEY WARNED THAT INTERNATIONAL ECONOMIC CONDITIONS REMAINED DIFFICULT WITH CAUTIOUS CONSUMER SPENDING AFFECTING SALES RESULTS IN JAPAN AND EUROPE TIFFANY'S US STORES DID WELL WITH SALES FROM STORES OPEN AT LEAST A YEAR UP 13 IN THE QUARTER AND UP 8 FOR THE FISCAL YEAR ENDED JAN 31 INTERNATIONAL SAMESTORE SALES WERE DOWN FOR THE QUARTER AND YEAR THE COMPANY SAID TIFFANY OPERATES 79 STORES AND BOUTIQUES WORLDWIDE WITH 16 IN THE US ONE IN CANADA SIX IN EUROPE AND 56 IN THE FAR EAST INCLUDING JAPAN ANALYSTS' CONCERNS OVER INTERNATIONAL SALES HAVE IN THE PAST HURT TIFFANY'S STOCK BUT YESTERDAY IN LATE NEW YORK STOCK EXCHANGE TRADING TIFFANY SHARES ROSE 1 TO 32 A SHARE TIFFANY'S US RETAIL SALES ROSE 15 TO 97 MILLION IN THE QUARTER AND ROSE 11 TO 2687 MILLION FOR THE YEAR DIRECTMARKETING SALES INCLUDING TIFFANY'S CORPORATE AND CATALOG UNITS DECLINED 8 TO 30 MILLION IN THE QUARTER AND DECLINED 2 TO 874 MILLION FOR THE YEAR DUE IN PART TO CAUTIOUS CORPORATE SPENDING INTERNATIONAL RETAIL SALES MORE THAN DOUBLED TO 811 MILLION IN THE QUARTER AND ROSE 35 TO 2104 MILLION FOR THE YEAR THE INTERNATIONAL SALES INCREASE REFLECTS THE COMPANY'S BUSINESS REALIGNMENT IN JAPAN IN MID1993 9403090135 940309 FCC CLEARS VIACOM'S PLAN FOR PARAMOUNT ACQUISITION NEW YORK FEDERAL REGULATORS GAVE FINAL APPROVAL TO VIACOM INC'S PLANNED ACQUISITION OF PARAMOUNT COMMUNICATIONS INC CLEARING VIACOM'S PLAN TO TAKE OWNERSHIP OF PARAMOUNT'S SEVEN TELEVISION LICENSES WITH THE FEDERAL COMMUNICATIONS COMMISSION'S CLEARANCE VIACOM CAN ACQUIRE THE BROADCAST LICENSES FOR THREE FOX NETWORK AFFILIATES IN DETROIT RALEIGHDURHAM NC AND SAN ANTONIO AND FOUR INDEPENDENT STATIONS IN PHILADELPHIA WASHINGTON DALLAS AND HOUSTON SEPARATELY PARAMOUNT REPORTED A LOSS FOR THE THIRD QUARTER ENDED JAN 31 THE MEDIA CONCERN HAD A NET LOSS OF 366 MILLION OR 31 CENTS A SHARE COMPARED WITH A NET LOSS OF 668 MILLION OR 56 CENTS A SHARE THE YEAR EARLIER REVENUE INCREASED 71 TO 101 BILLION FROM 9437 MILLION IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY VIACOM FELL 25 CENTS TO CLOSE AT 3250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PARAMOUNT ROSE 375 CENTS TO 4650 9403090134 940309 FFY FINANCIAL STOCK PURCHASE YOUNGSTOWN OHIO FFY FINANCIAL CORP HOLDING COMPANY FOR FIRST FEDERAL SAVINGS BANK OF YOUNGSTOWN SAID IT PLANS TO REPURCHASE AS MUCH AS 5 OF ITS SHARES OUTSTANDING OR 314925 SHARES IN THE OPEN MARKET OVER THE NEXT SIX MONTHS THE COMPANY SAID IT WILL BUY THE SHARES AT PREVAILING MARKET PRICES THE REPURCHASED SHARES WILL BECOME TREASURY SHARES AVAILABLE FOR GENERAL CORPORATE PURPOSES THE COMPANY SAID INCLUDING THE ISSUANCE OF SHARES IN CONNECTION WITH THE EXERCISE OF STOCK OPTIONS 9403090133 940309 THORN EMI UNIT'S ACQUISITION LONDON THORN EMI PLC SAID THAT ITS EMI MUSIC UNIT HAS AGREED IN PRINCIPLE TO ACQUIRE INTERCORD TONGESELLSCHAFT GMBH A UNIT OF GERMANY PUBLISHER VERLAGSGRUPPE GEORG VON HOLTZBRINCK GMBH INTERCORD IS AN INDEPENDENT RECORDEDMUSIC CONCERN THORN A LEISURE GROUP SAID IT WILL ANNOUNCE THE PRICE OF THE ACQUISITION WHEN IT IS COMPLETED IN A STATEMENT THORN SAID INTERCORD HAS ANNUAL SALES OF 585 MILLION 872 MILLION WHILE THORN HAS SALES OF 15 BILLION 9403090132 940309 GOOD GUYS EARNINGS FORECAST SAN FRANCISCO GOOD GUYS INC SAID IT EXPECTS FISCAL SECONDQUARTER NET INCOME TO SURPASS ANALYSTS' EXPECTATIONS THE MEAN FORECAST FOR THE PERIOD ENDING MARCH 31 IS 11 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC A YEAR EARLIER THE CONSUMER ELECTRONICS RETAILER HAD NET INCOME OF 352000 OR THREE CENTS A SHARE ON REVENUE OF 1164 MILLION ROBERT A GUNST CHIEF EXECUTIVE OFFICER SAID THE COMPANY PLANS TO OPEN EIGHT OR NINE NEW STORES THIS YEAR ALL IN SOUTHERN CALIFORNIA 9403090131 940309 WHO'S NEWS LDI CORP LDI CORP CLEVELAND NORTON W ROSE 65 YEARS OLD VICE CHAIRMAN OF PRIVATELY HELD BLUE CORAL INC A CONSUMER CHEMICALS CONCERN ALSO BASED HERE WAS NAMED A NEW DIRECTOR LDI LEASES AND SELLS NEW AND USED DATA PROCESSING TELECOMMUNICATIONS AND OTHER HIGHTECH EQUIPMENT AND PROVIDES MAINTENANCE TECHNICAL SUPPORT AND RELATED SERVICES MR ROSE FILLS A VACANCY ON THE COMPANY'S SIXMEMBER BOARD CREATED BY THE DEATH OF J ROBERT KILLPACK IN DECEMBER 9403090129 940309 TECHNOLOGY & SCIENCE PROBE FINDS ERRORS BUT NO MISCONDUCT IN WORK BY LEADPOISONING RESEARCHER BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL INVESTIGATORS SAID THEY FOUND NO EVIDENCE OF SCIENTIFIC MISCONDUCT BY A PROMINENT LEADPOISONING RESEARCHER BUT RAISED CONCERNS ABOUT NUMEROUS ERRORS AND MISSTATEMENTS IN HIS PUBLISHED WORK THE STATEMENT ENDED THREE YEARS OF FORMAL INVESTIGATIONS OF UNIVERSITY OF PITTSBURGH RESEARCHER HERBERT NEEDLEMAN HIS WORK HAS HELPED RAISE NATIONAL CONCERN ABOUT ADVERSE HEALTH EFFECTS OF LEAD BUT HAS BEEN SHARPLY CHALLENGED BY CRITICS WHO ASSERT THAT DR NEEDLEMAN USED SHODDY RESEARCH METHODS THAT EXAGGERATED LEAD'S HARM IN A LETTER SUMMARIZING ITS FINDINGS THE NATIONAL INSTITUTES OF HEALTH'S OFFICE OF RESEARCH INTEGRITY OR ORI EXONERATED DR NEEDLEMAN OF THE MOST SERIOUS CHARGES MADE BY HIS CRITICS BUT THE ORI'S STATEMENT PROVIDED AMMUNITION FOR CRITICS' ASSERTIONS THAT DR NEEDLEMAN HAS CONDUCTED SUBSTANDARD SCIENCE AND THUS SHOULDN'T BE A GOVERNMENT ADVISER ON LEAD THE ORI SAID DR NEEDLEMAN SHOULD SUBMIT CORRECTIONS TO VARIOUS SCIENTIFIC JOURNALS REGARDING THE INACCURACIES IT FOUND BOTH SIDES CLAIMED VICTORY BASED ON THE ORI'S STATEMENT THE MAIN THING IS THAT THERE WAS NO SCIENTIFIC MISCONDUCT BY DR NEEDLEMAN SAID JAMES LIEBER AN ATTORNEY FOR DR NEEDLEMAN THAT REALLY IS THE BOTTOM LINE HERE HE ADDED THAT WHILE THE ORI FOUND SOME MISTAKES IN DR NEEDLEMAN'S WORK IT ECHOED AN EARLIER FINDING BY A UNIVERSITY OF PITTSBURGH INVESTIGATIVE PANEL THAT THE ERRORS DIDN'T AFFECT THE VALIDITY OF HIS RESEARCH FINDINGS ON LEAD BUT CLAIRE ERNHART A LEAD RESEARCHER AT CASE WESTERN RESERVE UNIVERSITY IN CLEVELAND WHO IS ONE OF DR NEEDLEMAN'S MAIN CRITICS SAID THAT THE ORI REPORT SHOWS THERE ARE SERIOUS FLAWS IN DR NEEDLEMAN'S RESEARCH DR NEEDLEMAN'S SUBSTANDARD SCIENCE IS THE MOST CRITICAL THING DISCLOSED BY THE ORI INVESTIGATORS DR ERNHART SAID THE NIH BEGAN ITS INVESTIGATION IN 1991 AFTER DR ERNHART AND SANDRA SCARR A CHILDDEVELOPMENT SPECIALIST AT THE UNIVERSITY OF VIRGINIA FILED A COMPLAINT WITH THE AGENCY RAISING DOUBTS ABOUT A LANDMARK 1979 STUDY PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE BY DR NEEDLEMAN AND COLLEAGUES THE STUDY SUGGESTED LEVELS OF LEAD IN THE BODY TOO LOW TO CAUSE OVERT POISONING COULD LOWER CHILDREN'S IQS IN THE STUDY DR NEEDLEMAN'S TEAM COLLECTED FALLENOUT BABY TEETH FROM MORE THAN 2000 CHILDREN TO CHECK THEIR CUMULATIVE LEAD EXPOSURES BASED ON IQ TESTS GIVEN TO 158 OF THE CHILDREN WHO WERE DIVIDED INTO HIGHLEAD AND LOWLEAD GROUPS THEY REPORTED THAT ELEVATED LEAD LEVELS LOWERED IQ BY ABOUT FOUR POINTS DR NEEDLEMAN'S CRITICS CHARGED AMONG OTHER THINGS THAT HE USED DUBIOUS METHODS TO DIVIDE THE CHILDREN INTO THE TWO LEADLEVEL GROUPS POTENTIALLY BIASING THE RESULTS TO EXAGGERATE ADVERSE IQ EFFECTS OF LEAD IN AN INVESTIGATION COMPLETED IN 1992 THE UNIVERSITY OF PITTSBURGH PANEL CONCLUDED THAT DR NEEDLEMAN DIDN'T PURPOSEFULLY SKEW THE RESULTS AND WASN'T GUILTY OF SCIENTIFIC MISCONDUCT BUT THE PANEL FOUND THAT THERE WAS A PREPONDERANCE OF CIRCUMSTANTIAL EVIDENCE THAT DR NEEDLEMAN DELIBERATELY MISREPRESENTED SUBSTANDARD METHODS IN THE STUDY POSSIBLY SO IT WOULD APPEAR TO BE A MORE ADEQUATE BASIS FOR PUBLIC POLICY REGARDING ENVIRONMENTAL CONTROLS FOR LEAD DR NEEDLEMAN HOTLY DISPUTES THE CHARGE OF DELIBERATE MISREPRESENTATION AND IS SEEKING ITS RETRACTION IN A LAWSUIT AGAINST THE UNIVERSITY THE ORI'S COMPLETE REPORT ON ITS INVESTIGATION WHICH WASN'T IMMEDIATELY AVAILABLE IS SILENT ON THE ISSUE OF DELIBERATE MISREPRESENTATION SAID LYLE BIVENS ORI DIRECTOR WHILE MOSTLY ECHOING THE UNIVERSITY'S EARLIER INVESTIGATION THE ORI ALSO ADDRESSED LONGSTANDING ALLEGATIONS ABOUT A WIDELY CITED GRAPH BY DR NEEDLEMAN THAT THE UNIVERSITY PANEL DIDN'T ADDRESS THE GRAPH VARIATIONS OF WHICH DR NEEDLEMAN HAS PUBLISHED OFTEN SUGGESTS THAT EVEN VERY LOW LEVELS OF LEAD HAVE SIGNIFICANT IQLOWERING EFFECTS ON THE POPULATION AS A WHOLE THE ORI HOWEVER SAID DATA POINTS HAVE BEEN REPEATEDLY MISPLOTTED ON THE GRAPH IN A MISLEADING DEPICTION THAT OVERSTATES ADVERSE LEAD EFFECTS DR NEEDLEMAN SHOULD SUBMIT CORRECTIONS TO JOURNALS FOR BOTH THE GRAPH AND HIS 1979 STUDY ORI SAID THE STUDY AT ISSUE WAS ONLY ONE OF MANY ON THE LEAD ISSUE AND THE ORI FINDINGS AREN'T LIKELY TO HAVE MUCH BEARING ON THE CONTINUING QUESTION OF WHAT DANGER VERY LOW LEVELS OF LEAD POSE TO CHILDREN 9403090128 940309 DIVIDEND NEWS BANKERS LIFE HOLDING CORP BANKERS LIFE HOLDING CORP RAISED ITS QUARTERLY TO 15 CENTS A SHARE FROM TWO CENTS PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 18 THE CHICAGOBASED INSURANCE HOLDING COMPANY SAID THE INCREASE REFLECTS THE BOARD'S CONFIDENCE THAT THE COMPANY'S OPERATIONS WILL CONTINUE TO GENERATE STRONG EARNINGS AND CASH FLOW THE COMPANY RECENTLY REPORTED A 51 INCREASE IN 1993 PRO FORMA NET INCOME TO 1361 MILLION OR 249 A SHARE IN ADDITION IT SAID THE BOARD BELIEVED THE DIVIDEND SHOULD BE COMPARABLE TO THE RATE PAID BY ITS PEER LIFE/HEALTH INSURANCE COMPANIES 9403090127 940309 INTEGRATED LABS ACQUISITION HAMPSTEAD NH INTEGRATED LABS INC REACHED AN AGREEMENT TO ACQUIRE INLAND PLASTICS INC OF HICKSVILLE NY FOR A COMBINATION OF CASH A NOTE AND THE ASSUMPTION OF DEBT THE VALUE OF THE TRANSACTION WAS NOT DISCLOSED THE COMPANIES SAID INLAND PLASTICS DISTRIBUTES THERMOPLASTIC MATERIALS PROCESSES RECYCLED MATERIALS AND SELLS THERMOPLASTIC RESINS INTEGRATED LABS IS A PLASTICS MANUFACTURING AND ENVIRONMENTALTECHNOLOGIES CONCERN THE COMPANIES SAID INLAND PLASTICS WILL CONTINUE TO OPERATE INDEPENDENTLY AS A MAJORITYOWNED UNIT WHILE DOING BUSINESS WITH INTEGRATED LABS' OTHER PLASTICRELATED BUSINESSES 9403090126 940309 TECHNOLOGY AMES SAID TO HAVE FAILED POLYGRAPH TESTS FROM CIA WASHINGTON ALDRICH AMES THE CENTRAL INTELLIGENCE AGENCY OFFICER ACCUSED OF BEING A SPY FOR THE RUSSIANS FAILED POLYGRAPH TESTS ADMINISTERED BY THE AGENCY AN EXPERT ON THE INTELLIGENCE COMMUNITY ASSERTED RONALD KESSLER AUTHOR OF BOOKS ABOUT THE CIA AND THE FEDERAL BUREAU OF INVESTIGATION WROTE IN AN OPED ARTICLE IN THE NEW YORK TIMES YESTERDAY THAT MR AMES FAILED ALL THREE TESTS THE CIA GAVE HIM AFTER HE ALLEGEDLY BEGAN SPYING IN 1985 SPOKESMEN FOR THE CIA AND FBI DECLINED TO COMMENT REP DAVE MCCURDY D OKLA A FORMER CHAIRMAN OF THE HOUSE INTELLIGENCE COMMITTEE SAID THE CIA MIGHT EASILY HAVE ERRED FROM WHAT I'VE SEEN OF THE HANDLING OF THIS CASE IT WOULD JUST BE ONE MORE PIECE OF INCOMPETENCE HE SAID A FORMER CIA OFFICER DISPUTED MR KESSLER'S ACCOUNT WHICH HE ARGUED REFLECTS THE FBI LINE THAT THE BUREAU WOULD HAVE CRACKED THE AMES CASE SOONER IF THE CIA HADN'T INTERFERED THIS PERSON SAID THE FBI WAS GIVEN ACCESS TO THE SECOND AMES POLYGRAPH ADMINISTERED IN 1991 AND DIDN'T RAISE ANY ALARMS AT THAT TIME ANOTHER CIA ALUMNUS SAID THE CIA TENDS TO TAKE A HARD LINE IN INTERPRETING RESULTS OF POLYGRAPH TESTS GIVEN TO APPLICANTS BUT GIVES VETERANS SUCH AS MR AMES THE BENEFIT OF THE DOUBT 9403090125 940309 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES THE COMPANY'S OCCIDENTAL OIL & GAS CORP SUBSIDIARY NAMED TWO NEW EXECUTIVE VICE PRESIDENTS JOHN A CARVER WAS APPOINTED EXECUTIVE VICE PRESIDENT WORLDWIDE EXPLORATION AND JAMES B TAYLOR WAS APPOINTED EXECUTIVE VICE PRESIDENT INTERNATIONAL OPERATIONS MR CARVER 62 YEARS OLD PREVIOUSLY WAS VICE PRESIDENT INTERNATIONAL EXPLORATION AND MR TAYLOR 55 CONTINUES IN HIS PREVIOUS POSITION AS EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT WITH THE OIL AND NATURAL GAS UNIT BASED IN BAKERSFIELD CALIF THE PARENT IS A DIVERSIFIED COMPANY WITH INTERESTS IN NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING 9403090124 940309 QVC REPORTS NET DECLINE FOR FISCAL FOURTH QUARTER WEST CHESTER PA QVC INC REPORTED A SHARP DECLINE IN PROFIT FOR THE FISCAL FOURTH QUARTER PARTLY REFLECTING AN AFTERTAX CHARGE OF 188 MILLION FOR EXPENSES RELATED TO ITS FAILED BID FOR PARAMOUNT COMMUNICATIONS INC THE TELEVISION HOMESHOPPING COMPANY SAID PROFIT WAS 28 MILLION OR SIX CENTS A SHARE ON A FULLY DILUTED BASIS FOR THE QUARTER ENDED JAN 31 PROFIT A YEAR AGO WAS 189 MILLION OR 40 CENTS A SHARE ALSO ON A FULLY DILUTED BASIS IN ADDITION TO THE 188 MILLION CHARGE RELATED TO PARAMOUNT QVC ALSO INCURRED 74 MILLION IN AFTERTAX LOSSES FOR THE LAUNCH OF JOINT VENTURES IN THE UK AND MEXICO BARRY DILLER CHAIRMAN AND CHIEF EXECUTIVE OF QVC SAID THAT WHILE THE COMPANY HAD BEEN DISTRACTED WHILE PURSUING PARAMOUNT THE COMPANY'S CORE BUSINESS WAS STRONG AND IT HAS HAD AGGRESSIVE PLANS TO EXPAND CURRENT OPERATIONS OPERATING INCOME ROSE 35 TO 532 MILLION FROM 395 MILLION IN THE QUARTER REVENUE INCREASED 9 TO 3725 MILLION FROM 3418 MILLION ACCORDING TO A SPOKESMAN QVC'S SERVICES ADDED ABOUT THREE MILLION HOMES TO ITS HOMESHOPPING SUBSCRIBER BASE FOR THE YEAR ENDED JAN 31 QVC'S SERVICES ARE NOW AVAILABLE IN 50 MILLION HOMES 9403090123 940309 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK ROGER F DAVIS 50 YEARS OLD WAS NAMED VICE PRESIDENT INTERNATIONAL FINANCE AT THIS TELECOMMUNICATIONS COMPANY MR DAVIS SUCCEEDS VINCE SALVATI 44 WHO BECOMES VICE PRESIDENT INTERNATIONAL STRATEGIC ANALYSIS MAUREEN B TART 38 SUCCEEDS MR DAVIS AS VICE PRESIDENT AND CONTROLLER A POSITION HE HAD HELD SINCE 1988 MS TART HAD BEEN CHIEF FINANCIAL OFFICER AT AT&T CAPITAL CORP THE PUBLICLY HELD COMPANY THAT IS 86 OWNED BY AT&T THE APPOINTMENTS ARE EFFECTIVE MARCH 15 9403090122 940309 INTERNATIONAL OFFICIAL CITES SECURITY LAPSE AT HEBRON CAVE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM A SENIOR ISRAELI ARMY OFFICIAL SAID THAT ONLY ONE OF THREE SOLDIERS ASSIGNED TO GUARD THE CAVE OF THE PATRIARCHS IN HEBRON WAS AT HIS POST WHEN A JEWISH GUNMAN WENT ON A RAMPAGE FEB 25 THE PRESENCE OF THE FULL GUARD CONTINGENT MIGHT HAVE PREVENTED THE MASSACRE OF PALESTINIANS WORSHIPING AT A MOSQUE THERE HE ADDED THE TESTIMONY BY MAJ GEN DANNY YATOM HEAD OF CENTRAL COMMAND WHICH OVERSEES THE WEST BANK CAME ON THE OPENING DAY OF HEARINGS BY AN OFFICIAL FIVEPERSON ISRAELI COMMISSION THE COMMISSION IS CHARGED WITH INVESTIGATING HOW A JEWISH SETTLER BARUCH GOLDSTEIN MANAGED TO ENTER THE CAVE AND GUN DOWN MUSLIMS AT PRAYER BEFORE BEING BEATEN TO DEATH BY THE INCENSED CROWD MR YATOM SAID THAT LAPSES IN SECURITY HAD ALLOWED MR GOLDSTEIN WHO LIVED IN THE NEARBY JEWISH SETTLEMENT OF KIRYAT ARBA TO EASILY ENTER THE CAVE WITH A GALIL RIFLE AND OPEN FIRE ON PALESTINIANS WORSHIPING INSIDE THE HOLY SITE ACCORDING TO THE BIBLE IS WHERE ABRAHAM ISAAC JACOB AND THEIR WIVES ARE BURIED ACCORDING TO MR YATOM FIVE PALESTINIANS WERE KILLED IN GUNFIRE OUTSIDE THE CAVE WHILE FOUR WERE SHOT BY SOLDIERS DURING RIOTING IN THE CITY ANOTHER WAS KILLED IN A NEARBY NEIGHBORHOOD THE ATTACK LED TO THE BREAKDOWN OF NEGOTIATIONS BETWEEN THE ISRAELIS AND THE PALESTINIANS OVER IMPLEMENTING THEIR SEPTEMBER ACCORD GRANTING PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO THE PALESTINE LIBERATION ORGANIZATION HAS DEMANDED THAT THE ISRAELIS REMOVE SOME SETTLEMENTS BEFORE THEY RETURN TO THE NEGOTIATING TABLE AND WANTS AN INTERNATIONAL FORCE TO BE PRESENT IN THE WEST BANK AND GAZA PALESTINIAN ANGER OVER THE MASSACRE SPARKED WIDESPREAD RIOTING THROUGHOUT THE OCCUPIED TERRITORIES AND INSIDE ISRAEL THAT HAS SO FAR LEFT 33 PEOPLE DEAD AND SOME 450 PEOPLE INJURED PALESTINIANS HAVE BEEN BARRED FROM ENTERING THEIR JOBS INSIDE ISRAEL SINCE THE ATTACK TOOK PLACE DURING THE HEARING HELD IN THE ISRAELI SUPREME COURT BUILDING IN JERUSALEM ARMY OFFICIALS SAID THAT THEIR INTELLIGENCE BRIEFINGS DIDN'T ACCOUNT FOR THE POSSIBILITY OF RADICAL SETTLERS TRYING TO HARM PALESTINIANS AND INSTEAD FOCUSED EXCLUSIVELY ON ASSESSMENTS ABOUT THE LIKELIHOOD OF PALESTINIAN ATTACKS ON JEWS THE COMMISSION HEADED BY MEIR SHAMGAR CHIEF JUSTICE OF THE SUPREME COURT HAS NO FORMAL POWER TO ENFORCE ANY OF ITS RECOMMENDATIONS BUT ISRAELI GOVERNMENTS HAVE ACTED ON THE FINDINGS OF SUCH PANELS IN THE PAST 9403090121 940309 TEXAS JOURNAL HEARD IN TEXAS LIFEQUEST HOPES TO GAIN INVESTORS PROFIT BY BEING UNDERSTANDABLE' BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL INVESTING IN BIOTECHNOLOGY STOCKS SOMETIMES REQUIRES AN ADVANCED DEGREE IN SCIENCE IF YOU DON'T UNDERSTAND GENE THERAPY CELL SENESCENSE AND NUCLEOTIDES IT'S NEARLY IMPOSSIBLE TO DECIPHER A COMPANY'S TRUE PROSPECTS BUT SOME ANALYSTS SAY SAN ANTONIO'S LIFEQUEST MEDICAL IS A DIFFERENT CASE ITS PRODUCTS ARE TANGIBLE OBJECTS THAT CAN BE EASILY UNDERSTOOD AND THAT COULD MAKE IT ATTRACTIVE FOR MANY INVESTORS HOWEVER THE COMPANY'S STOCK HAS SO FAR BEEN VIRTUALLY IGNORED NAMELY BECAUSE THE MEDICALDEVICE MAKER HAS YET TO SELL ANYTHING OR TO RECORD POSITIVE EARNINGS THAT WILL CHANGE SAYS ROBERT PETERSON AN ANALYST AT HANIFEN IMHOFF DENVER THEIR PRODUCTS ARE VERY SIMPLE SOLUTIONS TO VERY SERIOUS MEDICAL CONDITIONS AND THAT MAKES THEM VERY APPEALING LIFEQUEST'S PRODUCTS WHICH INVOLVE ALTERNATIVE METHODS OF INJECTING MEDICATION INTO THE BLOODSTREAM ARE KNOWN AS OSTEOPORT AND FIRSTMED NEITHER HAS BEEN APPROVED BY THE FOOD AND DRUG ADMINISTRATION A NECESSARY STEP BEFORE THE COMPANY CAN BEGIN SELLING THE PRODUCTS BUT LIFEQUEST AND ANALYSTS EXPECT APPROVAL FOR BOTH SOMETIME THIS YEAR IF ANALYSTS ARE RIGHT ABOUT THESE PRODUCTS' PROSPECTS LIFEQUEST COULD TURN ITS FIRST PROFIT THIS YEAR JOHN R BOETTIGER SR HEALTHCARE ANALYST AT KEMPER SECURITIES IN HOUSTON SAYS LIFEQUEST COULD EARN AS MUCH AS 1 A SHARE FOR 1994 IF THE COMPANY GETS THE GOAHEAD FROM THE FDA SOON AND BEGINS SELLING OSTEOPORT BY APRIL HE EXPECTS A PROFIT FOR THE YEAR EVEN IF SALES DON'T GET GOING UNTIL LATE FALL MR PETERSON SEES 9 MILLION IN REVENUE FOR 1994 AND 60 MILLION NEXT YEAR LIFEQUEST WENT PUBLIC IN AUGUST 1992 AT 1050 A SHARE AFTER SPURTING AS HIGH AS 1475 IT NOW TRADES AT ABOUT 925 BARELY ABOVE ITS LOW FOR THE YEAR THE REASON LIFEQUEST IS A BIOTECH COMPANY WITH LITTLE TO SHOW EXCEPT HIGH HOPES AND RED INK FOR THE NINE MONTHS ENDED SEPT 30 LIFEQUEST LOST 314 MILLION OR 95 CENTS A SHARE THAT HASN'T BEEN A WINNING COMBINATION WITH INVESTORS IN RECENT YEARS AS SEEN BY THE RASH OF DOWNTRODDEN STOCKS IN THE BIOTECH INDUSTRY AND THERE'S ALWAYS A CHANCE THE FDA COULD NIX THE COMPANY'S PRODUCTS OR FORCE THE COMPANY BACK INTO CLINICAL TRIALS SUCH AN EVENT CERTAINLY WOULD THUMP THE STOCK BUT I WOULDN'T BET AGAINST FDA APPROVAL IN THIS CASE SAYS MR BOETTIGER OSTEOPORT IS LITTLE MORE THAN A THREEQUARTERINCHLONG HOLLOW SCREW IMPLANTED IN A PATIENT'S HIPBONE OR TIBIA THAT ALLOWS DOCTORS TO INJECT MEDICATION INTO THE CIRCULATORY SYSTEM THROUGH BONE MARROW THE DEVICE IS AIMED PARTICULARLY AT CRITICALCARE CANCER AND AIDS PATIENTS WHOSE VEINS ARE IMPOSSIBLE TO ACCESS BECAUSE THEY HAVE COLLAPSED FROM REPEATED INJECTIONS THOUSANDS OF PATIENTS DIE ANNUALLY SIMPLY BECAUSE CHEMOTHERAPY ANTIBIOTICS AND NUTRITION CAN'T BE DELIVERED ADEQUATELY THROUGH A DAMAGED CIRCULATORY SYSTEM OSTEOPORT'S OTHER MAJOR BENEFIT IS THAT THE DEVICE IS ENSCONCED BENEATH THE SKIN WHICH ALL BUT NEGATES THE CHANCE FOR INFECTION SIMILAR PRODUCTS SUCH AS VENOUS CATHETERS FREQUENTLY LEAD TO INFECTIONS BECAUSE THEY ARE EXPOSED TO THE OPEN AIR IN OSTEOPORT'S CLINICAL TRIALS NO PATIENTS SHOWED SIGNS OF INFECTION IN 1991 POPULAR SCIENCE MAGAZINE NAMED THE OSTEOPORT ONE OF THE YEAR'S BEST ACHIEVEMENTS IN SCIENCE AND TECHNOLOGY MR BOETTIGER SAYS THE COMPANY COULD SELL AS MANY AS 20000 OSTEOPORTS FOR 400 TO 500 EACH IN THE FIRST YEAR ULTIMATELY ANALYSTS ESTIMATE THE MARKET FOR THE DEVICE COULD EXCEED 500000 UNITS ANNUALLY LIFEQUEST'S OTHER PRODUCT THE FIRSTMED SYSTEM IS A FLASHLIGHTSIZE DEVICE THAT FIRES A NEEDLE INTO A PATIENT'S BREASTBONE AND INJECTS DRUGS INTO THE MARROW EACH UNIT IS PRELOADED WITH A CARTRIDGE OF MEDICATION SPECIFIC TO LIFETHREATENING EMERGENCIES SUCH AS CARDIAC ARREST AND DRUG OVERDOSE WHERE PARAMEDICS OFTEN TAKE MINUTES TO GET MEDICATION INTO A PATIENT FIRSTMED CAN PUNCTURE THE SKIN AND BONE INJECT ITS MEDICATION AND RETRACT IN LESS THAN THREE SECONDS ANALYSTS SAY THAT WITH THE TENS OF THOUSANDS OF HOSPITAL CRASH CARTS AND AMBULANCES IN THE COUNTRY ALONG WITH THOUSANDS OF EMERGENCY OPERATING ROOMS DEMAND FOR FIRSTMED COULD BE IN THE MILLIONS EACH UNIT WILL SELL FOR 45 TO 50 THE COMPANY EXPECTS FDA APPROVAL LATE THIS YEAR WITH SALES BEGINNING IN THE FOURTH QUARTER OR THE 1995 FIRST QUARTER ALSO IN THE COMPANY'S FAVOR UNLIKE THE AVERAGE BIOTECH STARTUP STRUGGLING UNDER DEBT BECAUSE OF RESEARCH AND DEVELOPMENT LIFEQUEST HAS MORE THAN 10 MILLION IN THE BANK AND NO DEBT MR BOETTIGER CONTENDS THAT LIFEQUEST ONCE ITS EARNINGS TURN POSITIVE SHOULD COMMAND AN EARNINGS MULTIPLE OF 15 TO 30 PROBABLY ON THE HIGH SIDE DUE TO THE COMPANY'S PREMIUM MARGINS ANALYSTS EXPECT IT WILL RETURN 30 OF EVERY DOLLAR IN REVENUE TO THE BOTTOM LINE BASED ON ESTIMATES OF 1 IN EARNINGS FOR 1994 LIFEQUEST IS A 15 TO 30 STOCK JUST WAITING FOR FDA APPROVAL MR BOETTIGER SAYS WESTERN CO OF NORTH AMERICA A PROVIDER OF ONSHORE OILFIELD SERVICES LAST WEEK SANK MORE THAN 22 TO 1125 AFTER THE COMPANY ANNOUNCED THAT IT FORESEES A LOSS IN THE FIRST QUARTER BECAUSE OF WEAK OIL PRICES IN THE YEAREARLIER QUARTER THE COMPANY REPORTED NET INCOME OF 25 MILLION OR 14 CENTS A SHARE HILO AUTOMOTIVE HOUSTON SURGED 15 TO 12375 THE RETAIL AUTOPARTS CHAIN WHICH WAS THE SUBJECT OF A RECENT COLUMN REPORTED THAT FEBRUARY SALES AT STORES OPEN AT LEAST A YEAR INCREASED 58 ANALYSTS NOTED IN A TEXAS JOURNAL ARTICLE IN JANUARY THAT A SURE SIGN OF STRENGTH FOR HILO AUTOMOTIVE WOULD BE INCREASING SAMESTORE SALES GAINS MICHAELS STORES GAINED MORE THAN 12 TO 4275 ON STRONGER EARNINGS FOR THE FOURTH QUARTER ENDED JAN 30 THE IRVING ARTS AND CRAFTS RETAILER POSTED NET INCOME OF 14 MILLION OR 75 CENTS A SHARE UP FROM 111 MILLION OR 64 CENTS A SHARE A YEAR EARLIER THE COMPANY ALSO NOTED THAT FEBRUARY SALES AT STORES OPEN AT LEAST A YEAR INCREASED 13 AND THAT IT HAS AGREED TO BUY OREGON CRAFT & FLORAL SUPPLY AND CALIFORNIABASED H&H CRAFT & FLORAL CO KELLEY OIL DROPPED 17 TO 725 A KEMPER SECURITIES ANALYST DOWNGRADED THE STOCK TO LONGTERM BUY FROM STRONG BUY A DAY AFTER THE COMPANY REPORTED THAT NONE OF THE SANDS TESTED AT AN OIL FIELD IN TERREBONE PARISH LA WERE FOUND TO BE PRODUCTIVE KELLEY NOTED THAT IT PLANS ADDITIONAL TESTS FOR OIL AND GAS AT LOWER LEVELS THAT HAVE BEEN PRODUCTIVE IN OTHER PARTS OF THE REGION 9403090119 940309 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE VENEZUELAN GOVERNMENT PRESENTED CONGRESS A TAX PACKAGE DESIGNED TO RAISE 267 BILLION THROUGH NEW LUXURY AND SALES LEVIES AT THE WHOLESALE LEVEL AND A TEMPORARY BANK TAX THE MEASURES ARE PART OF A STRATEGY TO DERIVE REVENUE FROM PRODUCTIVE ACTIVITY AND REDUCE STATE RELIANCE ON OIL THE MEASURES COULD CUT THE BUDGET DEFICIT TO 2 OF GROSS DOMESTIC PRODUCT FROM 6 OTHERWISE HALF THE NEW REVENUE WOULD COME FROM THE 075 TAX ON BANK TRANSACTIONS THROUGH DEC 31 THE STOCK EXCHANGE IN CARACAS HAS EXPRESSED ALARM SAYING THE LEVY COULD COST THE MARKET MORE THAN 100 MILLION THIS YEAR AS EQUITIES DEALINGS INVOLVE BANK PROCESSING THE GOVERNMENT WHICH TOOK OFFICE FEB 2 IS PUSHING TAX REFORM BECAUSE THE PREVIOUS BUDGET WAS BASED ON HIGHER OIL PRICES AND FASTER SELLOFFS OF STATE ENTERPRISES BIG PROTESTS SCUTTLED AN EARLIER DECISION TO RAISE GASOLINE PRICES WHEN THE BANK TAX EXPIRES THE GOVERNMENT PLANS BIG SPENDING CUTS AND CHANGES IN INCOME TAXES INCLUDING AN INCREASE IN THE TOP RATE TO 34 FROM 30 VENEZUELA ALSO PLANS TO OPEN UP PARTS OF ITS ECONOMY SUCH AS BASE METALS TO FOREIGN INVESTORS TRIALS BEGAN IN INDONESIA FOR 21 STUDENTS WHO COULD BE JAILED AS LONG AS SIX YEARS IF CONVICTED OF INSULTING PRESIDENT SUHARTO DURING A DEMONSTRATION LAST DECEMBER PROSECUTORS SAID THE DEFENDANTS BETWEEN AGES 20 AND 27 INSULTED MR SUHARTO BY PUTTING UP POSTERS CALLING FOR HIM TO BE HELD ACCOUNTABLE FOR HUMANRIGHTS VIOLATIONS DURING HIS 27 YEARS IN OFFICE AND READING A POEM ACCUSING THE PRESIDENT OF OPPRESSION LAST MONTH A HUMANRIGHTS ACTIVIST WAS SENTENCED TO FOUR YEARS IN JAIL ON SIMILAR CHARGES WESTERN GERMAN BANK EMPLOYEES WHOSE HBV UNION IS NEGOTIATING A 1994 ACCORD STAGED WARNING STRIKES AND PROTESTS IN SEVERAL CITIES THEIR CONTRACT EXPIRED JAN 31 AFTER THREE ROUNDS OF TALKS EMPLOYERS HAVEN'T MADE AN OFFER TO THE 430000 WORKERS WHO WANT A PAY RAISE AND A WORKWEEK CUT TO 37 HOURS FROM 39 A SLOWDOWN BY THE BUS DRIVERS UNION IN THE SOUTH KOREAN CAPITAL TO PRESS FOR HIGHER PAY IS HAVING AN UNINTENDED EFFECT PUBLIC APPROVAL THE DRIVERS KNOWN AS STREET VILLAINS IN MUSCLING DANGEROUSLY AMONG SEOUL'S 18 MILLION VEHICLES ARE STRICTLY OBSERVING WORK RULES HALTING AT DESIGNATED STOPS GIVING WAY TO VEHICLES AND PEDESTRIANS AND OBEYING TRAFFIC SIGNALS THIS HAS MADE FICTION OF TIMETABLES BUT PASSENGERS ACCUSTOMED TO CAVALIER TREATMENT AND ACCIDENTS WELCOMED THE UNION'S VOW TO CONTINUE THE SAFE APPROACH AFTER WAGE TALKS END THE CITY'S IMAGE COULD BENEFIT TOO AS TOURISTS IN SURVEYS HAVE FAULTED SEOUL'S TRAFFIC CHAOS ITS TOURISM INDUSTRY REELING BECAUSE OF ATTACKS BY MILITANT MUSLIMS EGYPT CREATED A 41 MILLION PRINT AND TELEVISION ADVERTISING CAMPAIGN THE ADS AIM TO CORRECT THE IMAGE OF EGYPT AND PUT TERRORIST INCIDENTS IN THEIR PROPER CONTEXT THE TOURISM MINISTER TOLD AN EGYPTIAN NEWSPAPER THEY WILL RUN IN BRITAIN GERMANY ITALY FRANCE JAPAN AND THE US TOURISM ONCE A MAIN SOURCE OF EGYPT'S FOREIGNCURRENCY EARNINGS HAS FALLEN SHARPLY IN THE PAST TWO YEARS OF VIOLENCE INCLUDING ATTACKS ON FOREIGN TRAVELERS BY FUNDAMENTALISTS FIGHTING TO OVERTHROW THE SECULAR GOVERNMENT IN A WIDENING SCANDAL JAPANESE PROSECUTORS ACCUSED A LIBERAL DEMOCRATIC PARTY LEGISLATOR AND FORMER CONSTRUCTION MINISTER KISHIRO NAKAMURA OF SELLING HIS INFLUENCE TO AN INDUSTRY EXECUTIVE AUTHORITIES SOUGHT TO ARREST MR NAKAMURA 44 FOR ALLEGEDLY ACCEPTING 95000 FROM A KAJIMA CORP OFFICIAL IN JANUARY 1992 IN RETURN FOR PRESSURING JAPAN'S FAIR TRADE COMMISSION NOT TO PURSUE A CASE OF POSSIBLE KAJIMA BIDRIGGING ON PUBLIC CONTRACTS THE AGENCY DROPPED THE CASE IN MAY 1992 BUT ANY ROLE BY MR NAKAMURA IN THAT DECISION WASN'T CLEAR THE CHARGES ARE THE FIRST FILED AGAINST A NATIONAL LAWMAKER SINCE THE LDP WAS FORCED FROM A 38YEAR RULE LAST SUMMER UNDER A CLOUD OF SCANDALS UNTIL NOW LOCAL POLITICIANS AND ABOUT 30 CONSTRUCTION EXECUTIVES HAVE BEEN ARRESTED MR NAKAMURA'S ARREST REQUIRES MAJORITY APPROVAL BY PARLIAMENT'S LOWER HOUSE WHICH HASN'T BEEN GRANTED SINCE 1967 HE SAID HE WAS PREPARED TO BE ARRESTED AND TO DISCLOSE FACTS OF THE CASE JAPAN WILL MELT DOWN FOUR MILLION GOLD COINS ISSUED IN 1986 TO COMMEMORATE THE 60TH ANNIVERSARY OF THE REIGN OF THE LATE EMPEROR SHOWA AND CONVERT THEM INTO GOLD INGOTS FOR PUBLIC SALE A THIRD OF THE COINS WERE RETURNED TO JAPAN'S CENTRAL BANK BECAUSE THEIR RESALE VALUE DIDN'T RISE TO ALLEVIATE A CHRONIC TELEPHONE SHORTAGE FOR THE 13 MILLION RESIDENTS OF SHANGHAI CHINA 315000 PHONES WERE INSTALLED LAST YEAR BRINGING THE TOTAL TO 11 MILLION AS WELL AS A TIDE OF NEW COMPLAINTS OF RUDE THREATENING AND OBSCENE PHONE CALLS 9403090118 940309 BETA WELL TALKS BREAK OFF LEDUC ALBERTA BETA WELL SERVICE INC SAID ITS NEGOTIATIONS TO ACQUIRE A 25 INTEREST IN A PETROLEUM JOINT VENTURE IN THE STAVRAPOL REGION OF RUSSIA WERE BROKEN OFF THE LEDUC OILFIELD SERVICES COMPANY SAID IT WASN'T ABLE TO CONCLUDE A DEFINITIVE AGREEMENT WITH CLOSELY HELD GENESIS EURASIA CORP HOUSTON WHICH CURRENTLY OWNS 50 OF THE JOINT VENTURE BETA HAD ANNOUNCED IN JANUARY THAT IT HAD SIGNED A LETTER OF INTENT WITH GENESIS FOR THE PROPOSED TRANSACTION BETA SAID IT IS CONTINUING PREVIOUSLY ANNOUNCED NEGOTIATIONS TO ACQUIRE INTERESTS IN OIL JOINT VENTURES IN KAZAKHSTAN AND RUSSIA'S KOMI REPUBLIC 9403090117 940309 INTERNATIONAL JAPANESE TOY MAKER BANDAI PLANS TO BOOST OVERSEAS PRODUCTION TOKYO JAPANESE TOY MAKER BANDAI CO WILL BUILD NEW PRODUCTION FACILITIES IN VIETNAM AND MEXICO THIS YEAR TO BOOST OVERSEAS PRODUCTION AND CUT COSTS MAKOTO YAMASHINA BANDAI PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE MOVE IS PART OF THE COMPANY'S EFFORTS TO GLOBALIZE IN THE FACE OF A SHRINKING JAPANESE TOY MARKET AND THE INCREASED POPULARITY OF BANDAI PRODUCTS OVERSEAS THE UNEXPECTED US POPULARITY OF BANDAI'S LINE OF MIGHTY MORPHIN POWER RANGERS CHARACTER DOLLS BASED ON A POPULAR JAPANESE TELEVISION SHOW HAS LED THE COMPANY TO SPEED UP PRODUCTION PLANS SIGNIFICANTLY HE SAID BANDAI EXPECTS TO POST A PRETAX PROFIT OF 5 BILLION YEN 473 MILLION FOR THE YEAR ENDING IN MARCH ON SALES OF 170 BILLION YEN MR YAMASHINA SAID THAT BECAUSE OF STRONG INTEREST IN THE COMPANY'S TOY PRETAX PROFIT FOR THE FOLLOWING BUSINESS YEAR WILL AT LEAST DOUBLE 9403090116 940309 LAW LEGAL BEAT SEC ASKS JUDGE IN PRUDENTIAL CASE TO CUT FEES FOR PLAINTIFFS' LAWYERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION PURSUING ITS NEW ACTIVIST ROLE IN INVESTOR LITIGATION URGED A FEDERAL JUDGE TO SLASH THE FEES SOUGHT BY PLAINTIFFS' LAWYERS IN A BIG CLASSACTION SETTLEMENT INVOLVING PRUDENTIAL SECURITIES INC THE SEC ARGUED IN A LETTER THAT PLAINTIFFS' LAWYERS SHOULDN'T RECEIVE THE ROUGHLY 27 MILLION THEY'RE SEEKING IN THE 907 MILLION CASH ACCORD THAT'S BECAUSE CLASSACTION COUNSEL EARLIER HAD ADVOCATED AN INADEQUATE SETTLEMENT PROPOSAL THAT SUBSEQUENTLY WAS YANKED BY PRUDENTIAL AMID HEAVY CRITICISM BY STATE REGULATORS THE SEC SAID THE UNUSUAL MOVE BY THE SEC REFLECTS THE NEW TONE SET BY SEC CHAIRMAN ARTHUR LEVITT IN A JANUARY SPEECH TO SECURITIES REGULATORS MR LEVITT SAID AT THE TIME THAT THE AGENCY WOULD CONSIDER INTERVENING IN CASES THAT IT DEEMED FRIVOLOUS INCLUDING ADVISING COURTS ON THE APPROPRIATENESS OF PROPOSED SETTLEMENTS THE STANCE IN THE PRUDENTIAL MATTER IS A MAJOR TEST OF THE SEC'S NEW RESOLVE AND UNDERSCORES ITS INCREASED FOCUS ON ISSUES INVOLVING INDIVIDUAL INVESTORS LEGAL FEES ARE CRITICIAL FOR SMALL INVESTORS IN SUCH CLASSACTION CASES THE LESS MONEY LAWYERS RECEIVE IN FEES THE MORE CASH THE 115000 PRUDENTIAL INVESTORS WILL GET WHILE OUTSIDE PARTIES OFTEN ATTEMPT TO INTERVENE IN CLASSACTION CASES OBJECTIONS BY THE SEC TRADITIONALLY CARRY MORE WEIGHT BECAUSE THE AGENCY IS THE NATION'S TOP SECURITIES COP THIS IS ONE OF THE RARE INSTANCES THAT I'M AWARE OF WHERE REGULATORS ACTUALLY STEPPED IN AND SAID WAIT A SECOND THIS IS NOT JUST A CANDY STORE FOR ATTORNEYS' SAID ONE LAWYER FAMILIAR WITH THE CASE AT ISSUE ARE 35 PRUDENTIALBACHE ENERGY INCOME PARTNERSHIPS THE LARGEST SERIES OF PARTNERSHIPS OFFERED IN THE 1980S BY PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA IN JANUARY A NEW ORLEANS FEDERAL JUDGE APPROVED THE 907 MILLION SETTLEMENT IN THE CASE WHICH WAS BROUGHT BY INVESTORS WHO SAY THEY WERE MISLED ON THE RISKS AND RETURNS OF THE PARTNERSHIPS WHICH HAVE SUNK TO HALF THEIR ORIGINAL 145 BILLION IN VALUE WHAT LED TO THE FRACAS OVER FEES WAS PRUDENTIAL'S ORIGINAL SETTLEMENT OFFER IN THE CASE IN THAT PROPOSAL PRUDENTIAL OFFERED 37 MILLION IN CASH PLUS INTERESTS IN A REORGANIZED PARTNERSHIP CLASSACTION COUNSEL SOUGHT 21 MILLION IN FEES UNDER THAT SETTLEMENT PROPOSAL WHICH PRUDENTIAL LATER WITHDREW AMID HEAVY CRITICISM BY STATE REGULATORS AND INVESTORS SUPPORT FOR THAT INADEQUATE PROPOSAL WOULD SEEM MORE PROPERLY TO LEAD TO A REDUCTION RATHER THAN AN INCREASE IN FEE AWARDS WROTE SEC GENERAL COUNSEL SIMON M LORNE IN THE LETTER MOREOVER THE SEC IS QUESTIONING WHY CLASSACTION COUNSEL NOW ARE SEEKING 30 OF THE 907 MILLION CASH SETTLEMENT WHEN THEY SOUGHT ONLY 25 OF THE TOTAL ESTIMATED VALUE OF THE EARLIER PROPOSAL ALTHOUGH WE UNDERSTAND THAT COUNSEL MAY HAVE SPENT MORE TIME AND EFFORT ON THE CASE IN THE INTERVENING MONTHS BETWEEN THE WITHDRAWAL OF THE FIRST SETTLEMENT PROPOSAL AND THE SUBMISSION OF THE SECOND IT IS NOT CLEAR TO WHAT EXTENT COUNSEL'S EFFORTS AS OPPOSED TO THOSE OF THE COURT AND THE STATE REGULATORS ADDED VALUE TO THE FIRST SETTLEMENT OFFER THE SEC LETTER SAID NOT SURPRISINGLY PLAINTIFFS' LAWYERS BRISTLED AT THE SEC OBJECTION THEY SAID THE 30 FEE REQUEST IS JUSTIFIED BECAUSE OF THE ADDITIONAL WORK THAT WENT INTO THE LATER ACCORD AMONG OTHER THINGS AND THEY SAID THAT THEY ADDED LAWYERS BETWEEN SETTLEMENT PROPOSALS INCLUDING THOSE WHO HAD OBJECTED TO THE EARLIER OFFER WE HAVE ADDED ANOTHER SEVEN LAWYERS ALL OF WHOM CLAIM TO HAVE PUT IN TIME AND MADE A SIGNIFICANT CONTRIBUTION SAID EDWARD GROSSMANN THE LEAD PLAINTIFFS' LAWYER IN THE CLASSACTION CASE WHEN ALL IS SAID AND DONE THE PREVIOUS OBJECTORS WILL WIND UP WITH MORE THAN 5 OF THE FEES MR GROSSMANN SAID IT'S UNFAIR TO LABEL THE INITIAL SETTLEMENT OFFER INADEQUATE MR GROSSMANN SAID THE SEC IN EFFECT IS WRONG BY SAYING THAT ONE DEAL WAS SO MUCH MORE VALUABLE THAN THE OTHER HE SAID THE FIRST DEAL WAS A GOOD SETTLEMENT THE SEC REVIEW WAS PROMPTED BY CRITICISM OF THE PRUDENTIAL SETTLEMENT BY CALIFORNIA SECURITIES REGULATORS IN A LETTER LAST MONTH TO FEDERAL JUDGE MARCEL LIVAUDAIS JR WHO IS OVERSEEING THE CASE CALIFORNIA SECURITIES DIRECTOR GARY MENDOZA SAID THE CLASSACTION LAWYERS DIDN'T DESERVE TO BASE THEIR FEES ON THE 907 MILLION SETTLEMENT BECAUSE THEY DIDN'T PLAY A BIG ROLE IN CRAFTING THE ACCORD INDEED HE SAID THE LAWYERS BATTLED WITH STATE REGULATORS ABOUT THEIR OBJECTIONS TO THE EARLIER PROPOSAL PERSECUTION FOR UNIONORGANIZING ACTIVITIES CAN QUALIFY AN INDIVIDUAL FOR POLITICAL ASYLUM A FEDERAL APPEALS COURT RULED IN A REBUKE TO IMMIGRATION OFFICIALS THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK SAID THAT A GUATEMALAN UNION OFFICIAL WAS IMPROPERLY DENIED ASYLUM BECAUSE OF A TECHNICAL READING OF THE LAW THAT NARROWED ELIGIBILITY TO THOSE PERSECUTED FOR EXCLUSIVELY POLITICAL REASONS VINCENTE OSORIO A MEMBER OF THE EXECUTIVE COMMITTEE OF A MUNICIPAL WORKERS' UNION IN GUATEMALA CITY HAD ARGUED THAT HE WAS PERSECUTED FOR BOTH POLITICAL AND ECONOMIC REASONS HE HAD PRESENTED EVIDENCE THAT MANY OF HIS CLOSE COLLEAGUES HAD BEEN MURDERED BY THE GUATEMALAN GOVERNMENT IN CONNECTION WITH UNIONORGANIZING EFFORTS AND THAT THE THREEYEAROLD SON OF ANOTHER HAD BEEN SHOT AND PARALYZED IN REACHING ITS DECISION THE THREEJUDGE PANEL FOUND A PATTERN OF PERSECUTION BY THE GUATEMALAN GOVERNMENT AND DUBBED IT HORRIFIC AND RIVALED IN THIS HEMISPHERE ONLY BY EL SALVADOR TO DENY MR OSORIO ASYLUM BECAUSE HIS ACTIVITIES WERE ESSENTIALLY ECONOMIC WOULD BE LIKE DENYING FORMER DISSIDENT ALEXANDER SOLZHENITSYN POLITICAL ASYLUM BECAUSE HIS DISPUTE WITH THE SOVIET UNION WAS ESSENTIALLY LITERARY THE APPEALS COURT CONCLUDED IN WASHINGTON EDMOND MULET THE GUATEMALAN AMBASSADOR TO THE US SAID HE HADN'T SEEN THE OPINION BUT HE SAID GUATEMALA HAS TAKEN STEPS TO ELIMINATE POLITICAL PERSECUTION SINCE ITS CIVILIAN GOVERNMENT WAS INSTITUTED IN 1986 MR OSORIO CONTENDS THAT HE WAS PERSECUTED UP UNTIL THE TIME HE LEFT GUATEMALA FOR THE US IN 1989 YOU CAN'T OVERCOME A TRADITION OF VIOLENCE AND CONFRONTATION OVERNIGHT THE AMBASSADOR SAID MAYBE HE WAS RIGHT TO COME TO THE US AT THAT TIME BUT NOW IT DOESN'T APPLY IMMIGRATION EXPERTS SAID THE DECISION REFLECTED AN INCREASED WILLINGNESS ON THE PART OF FEDERAL APPEALS COURTS TO REVIEW AND REVERSE NARROW INTERPRETATIONS OF ELIGIBILITY FOR POLITICAL ASYLUM BY THE BUREAU OF IMMIGRATION APPEALS A PART OF THE US JUSTICE DEPARTMENT SEVERAL CIRCUITS HAVE INDICATED SUCH A WILLINGNESS BUT ONLY THE NINTH CIRCUIT WHICH COVERS CALIFORNIA HAD ACTUALLY DONE SO BEFORE A US SUPREME COURT DECISION LAST YEAR LEFT SEVERAL RELATED QUESTIONS UNANSWERED ARTHUR HELTON A NEW YORK ATTORNEY WITH THE LAWYERS COMMITTEE FOR HUMAN RIGHTS WHICH SUBMITTED A BRIEF IN SUPPORT OF MR OSORIO SAID HIS GROUP HAS ASKED ATTORNEY GENERAL JANET RENO TO ISSUE A BROADER DEFINITION OF POLITICAL ASYLUM TO AVOID PIECEMEAL LITIGATION OF THE ISSUE THE GROUP ALSO URGES THE CREATION OF A PROCESS TO REVIEW ASYLUM APPLICATIONS THAT IS SEPARATE FROM THE IMMIGRATION PROCESS CANADA GERMANY AND FRANCE AMONG OTHER COUNTRIES ALREADY HAVE SEPARATE IMMIGRATION AND ASYLUM PROCESSES MR HELTON SAID THE GOVERNMENT SAID IT HASN'T DECIDED WHETHER TO APPEAL THE DECISION IN THE NEXT FEW WEEKS THE JUSTICE DEPARTMENT INTENDS TO ISSUE PROPOSED REVISIONS TO THE ASYLUM PROCESS NOSHOW IN DELAWARE HOUSTON LAWYER JOSEPH JAMAIL DECLINED TO RESPOND TO THE DELAWARE HIGH COURT'S REQUEST THAT HE EXPLAIN WHY HE SHOULDN'T BE BANNED FROM PRACTICING IN THE STATE LAST MONTH THE COURT LAMBASTED THE SUCCESSFUL PLAINTIFFS' ATTORNEY FOR WHAT IT CALLED HIS EXTRAORDINARILY RUDE UNCIVIL AND VULGAR CONDUCT TOWARD A DELAWARE ATTORNEY THE COURT HAD ASKED MR JAMAIL TO RESPOND BY MONDAY BUT DIDN'T SAY WHAT STEPS IT WOULD TAKE NEXT MR JAMAIL WHO COULDN'T BE REACHED FOR COMMENT PREVIOUSLY DEFENDED HIS ACTIONS AND SAID HE HAD NO INTEREST IN PRACTICING IN DELAWARE MR JAMAIL'S ALLEGED BAD BEHAVIOR OCCURRED DURING A DEPOSITION FOR A LAWSUIT IN CONNECTION WITH THE PARAMOUNT COMMUNICATIONS INC TAKEOVER BATTLE MARGARET A JACOBS AND WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9403090115 940309 THE NEW BOOM TOWNS MEDICAL COMPANIES THRIVE AMID CORNFIELDS BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL A WATER TOWER PAINTED LIKE A GIANT EAR OF CORN LOOMS OVER THE EDGE OF ROCHESTER MINN SMOKED WILD GAME IS THE SPECIALTY AT NEARBY HARDY'S BARBEQUE AND FOR FUN LOCALS CAN GO TO ONE OF SEVEN BOWLING ALLEYS HARDLY SIGNS OF LIFE ON THE CUTTING EDGE BUT SCATTERED ACROSS THE FARMLANDS ARE HIGHTECH COMPANIES THAT HAVE FUELED GROWTH TO THE POINT WHERE MINNESOTA'S OLMSTED COUNTY IS ONE OF THE 20 FASTESTGROWING COUNTIES IN THE NATION DAKOTA AND WASHINGTON COUNTIES SUBURBS OF MINNEAPOLIS ST PAUL ALSO MADE THE LIST OF WHITECOLLAR BOOM TOWNS THANKS TO AN INCREASE IN HIGHTECH INDUSTRY JOBS WHILE THERE IS STILL BLUECOLLAR WORK ON FARMS DAIRIES AND CORNPACKING PLANTS THE AREA IS REFERRED TO AS MEDICAL ALLEY THIS IS GOING TO BE A PLACE FOR INVESTMENT OPPORTUNITIES SAYS TIM MAUDLIN A MANAGING PARTNER OF MEDICAL INNOVATION PARTNERS A VENTURE CAPITAL GROUP THAT INVESTS IN THE REGION MUCH OF THE GROWTH HAS BEEN FUELED BY BUSINESSES SPAWNED BY THE MAYO CLINIC ONE OF THE REGION'S MAJOR EMPLOYERS AND THOSE MANAGERS WHO LEAVE INTERNATIONAL BUSINESS MACHINES CORP'S ROCHESTER PLANT TO START BUSINESSES HOMEGROWN SUCCESS HAS CONVINCED ECONOMIC DEVELOPERS TO DO THE UNTHINKABLE THEY RARELY TRY TO WOO BUSINESSES TO THE COUNTY WE'RE GOING INWARD SAYS GARY SMITH EXECUTIVE VICE PRESIDENT OF ROCHESTER AREA ECONOMIC DEVELOPMENT INC A PRIVATE NONPROFIT ECONOMIC DEVELOPMENT GROUP IT'S A LOT MORE SENSIBLE APPROACH TO BUILDING AN ECONOMIC FUTURE THAN CHASING SMOKESTACKS MILLIONS OF DOLLARS IN VENTURE CAPITAL HAVE POURED INTO THE REGION THE ROCHESTER DEVELOPMENT GROUP STARTED A FUND ABOUT FOUR YEARS AGO TO HELP LOCAL STARTUPS AND MORE IMPORTANTLY TO MATCH ENTREPRENEURS WITH INVESTORS THERE'S CAPITAL AVAILABLE FOR THE TRULY GOOD ENTREPRENEURIAL IDEAS SAYS MR SMITH NOT A LOT OF OTHER COMMUNITIES OF 70000 PEOPLE HAVE THAT THE OFFICE MATCHED SHOWCASE CORP A SOFTWARE COMPANY FOUNDED BY DAVID WENZ AND OTHER EXIBM EMPLOYEES WITH AN INVESTOR WHO HAD 250000 WE REALLY WORKED OFF OUR IBM TRACK RECORDS SAYS MR WENZ WHO WAS ONE OF IBM'S TOP PATENT HOLDERS WHEN HE LEFT THE COMPANY IN 1989 WE BUILT PRODUCTS THAT MADE HUNDREDS OF MILLIONS FOR IBM THAT RECORD ALSO HELPED WIN BACKING FROM NORWEST VENTURE CAPITAL IN MINNEAPOLIS IT INVESTED ABOUT 35 MILLION IN EXCHANGE FOR A 30 STAKE IN SHOWCASE MR WENZ SAYS THAT ALLOWED THE FIVEYEAROLD COMPANY TO WORK ON SOFTWARE WITH HEALTHCARE AND MANUFACTURING APPLICATIONS SHOWCASE IS PRODUCING RESULTS IT HAS FIVE OFFICES IN THE US AND ONE IN DENMARK ITS REVENUES ARE ABOUT 7 MILLION A YEAR AND SHOULD DOUBLE THIS YEAR MR WENZ SAYS WE'RE PROFITABLE AND WE DON'T OWE ANYONE ANY MONEY HE SAYS EVEN THE CENTURYOLD MAYO CLINIC HAS TAKEN ADVANTAGE OF THE INTEREST IN NEW VENTURES MEDICAL INNOVATION PARTNERS THE VENTURE CAPITAL GROUP WORKING WITH THE CLINIC RAISED 35 MILLION LAST YEAR SAYS MR MAUDLIN A MANAGING PARTNER WITH MAYO DEVELOPING MORE TECHNOLOGIES THE GROUP EXPECTS TO CREATE FOUR COMPANIES A YEAR IN THE NEXT FOUR YEARS TO MARKET THEM HE SAYS THE CLINIC IN 1985 FORMED ITS OWN MEDICAL VENTURES GROUP TO LICENSE INVENTIONS A LESSON LEARNED THE HARD WAY MAYO DOCTORS DISCOVERED CORTISONE IN 1950 BUT THE CLINIC NEVER LICENSED IT AND SO NEVER RECEIVED ROYALTIES FROM THE LUCRATIVE DRUG IT HAS DIVERSIFIED FROM DIAGNOSING DISEASE INTO SUCH PROFITABLE BUSINESSES AS BOOK PUBLISHING AND INTERNATIONAL CONSULTING EVEN THE MAYO NAME BRINGS IN MONEY A MAYO HEALTH NEWSLETTER HAS 419000 SUBSCRIBERS THE MAYO CLINIC FAMILY HEALTH BOOK WHICH COVERS EVERYTHING FROM ANEMIA TO XRAYS HAS SOLD 600000 COPIES SINCE ITS RELEASE IN 1990 RICK COLVIN EXECUTIVE DIRECTOR OF MAYO MEDICAL VENTURES ESTIMATES THAT ABOUT 50 MILLION IN VENTURE CAPITAL IS INVESTED IN MAYO TECHNOLOGIES WHICH GENERATE LICENSEE SALES OF ABOUT 100 MILLION A YEAR ONE SUCH TECHNOLOGY IS A THREEDIMENSIONAL IMAGEMANIPULATING SOFTWARE CALLED ANALYZE WHICH ALLOWS DOCTORS TO PLAN SURGERY INCLUDING THE 1992 SEPARATION OF TWINS JOINED AT THE ABDOMEN AND STERNUM ON A COMPUTER ANOTHER INVENTION IS THE GENESIS KNEE AN ARTIFICIAL JOINT IT AND ANALYZE EACH PRODUCE MORE THAN 1 MILLION IN ROYALTIES A YEAR FOR MAYO IVI PUBLISHING INC IN EAGAN A TWIN CITIES SUBURB WAS FORMED TO MARKET A MAYO INVENTION THAT MATCHES MULTIMEDIA TECHNOLOGIES WITH HEALTHCARE INFORMATION THE COMPANY'S FOUNDERS HAD APPROACHED MAYO ABOUT PRODUCING THE CDROM VERSION OF THE MAYO CLINIC FAMILY HEALTH BOOK IVI GOT ITS FUNDING THROUGH MEDICAL INNOVATION PARTNERS WHICH IS NOW ITS BIGGEST SHAREHOLDER WITH ABOUT A 20 STAKE IVI HAS RAISED ABOUT 35 MILLION IN CAPITAL SINCE ITS STARTUP THREE YEARS AGO THERE'S A HISTORY HERE OF PEOPLE INVESTING IN MEDICAL TECHNOLOGY AND HAVING SUCCESS SAYS CHARLES NICKOLOFF VICE PRESIDENT AND A FOUNDER I DON'T THINK WE'VE LOST ANY OPPORTUNITIES BY NOT BEING ON EITHER COAST THE SURGE IN NEW VENTURES AND INFLUX OF MIDDLE MANAGERS HAS HELPED BOOST OLMSTED COUNTY'S MEDIAN INCOME TO 35788 WELL ABOVE THE NATIONAL MEDIAN OF 30056 AND A MORE THAN 78 INCREASE FROM 1980 STILL MR WENZ SOMETIMES ENCOUNTERS PRECONCEPTIONS WHEN RECRUITING EMPLOYEES FROM URBAN AREAS THEIR REACTION WHY WOULD I WANT TO LIVE IN THE MIDDLE OF A CORNFIELD BESIDES THE REMOTE LOCATION JANUARY TEMPERATURES CAN DIP TO 20 DEGREES BELOW ZERO BUT ONCE PEOPLE VISIT THEY OFTEN STAY ONE REASON THE MEDIAN PRICE FOR A THREEBEDROOM HOUSE IS 93500 COMPARED WITH THE NATIONAL MEDIAN OF 106800 I DON'T THINK WE EVER LOST A MAJOR RECRUIT HE SAYS SOME BECOME SO HOOKED ON THE REGION THAT THEY LIMIT BUSINESS DEALINGS TO FELLOW MIDWESTERNERS TOM GAUTHIER FOUNDED TWO COMPANIES GAUTHIER INDUSTRIES INC AND GAUTHIER MEDICAL INC IN ROCHESTER I TRIED DOING BUSINESS ON THE EAST COAST MR GAUTHIER SAYS BUT NOW HE STICKS CLOSER TO HOME IT WAS BUREAUCRATIC BACKSTABBING AND HIGHLY COMPETITIVE 9403090114 940309 CORPORATE FOCUS TEXAS INSTRUMENTS SEES PATH ON INFORMATION HIGHWAY NEW CHIP MAY HELP FIRM BENEFIT FROM PUSH TOWARD ADVANCED TECHNOLOGY BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IF EVER THERE WAS A COMPANY THAT COULD USE A LITTLE INFORMATIONSUPERHIGHWAY HOOPLA TEXAS INSTRUMENTS INC IS IT THE ENGINEERDOMINATED DEFENSE AND ELECTRONICS GIANT HAS OVER THE YEARS SUFFERED A REPUTATION AS A TECHNOLOGY INNOVATOR WITH LITTLE MARKETING PANACHE THOUGH TI IS CREDITED WITH COINVENTING THE INTEGRATED CIRCUIT IT LONG AGO FUMBLED ITS LEAD IN THE COMPUTERCHIP MARKET AND ALSO STUMBLED ON EARLY STABS AT HOME COMPUTERS AND ARTIFICIALINTELLIGENCE SOFTWARE NOW THE COMPANY IS CONVINCED IT HAS FOUND ITS CALLING AND CAN GREATLY BENEFIT FROM THE VAUNTED INFORMATION SUPERHIGHWAY AT A NEWS CONFERENCE IN SAN FRANCISCO TODAY TI IS EXPECTED TO UNVEIL A SUPERFAST NEW VERSION OF A COMPUTER CHIP THAT EXECUTIVES HOPE WILL POSITION THE COMPANY AS A LEADING PARTS SUPPLIER FOR THE NEXT GENERATION OF INTERACTIVE TELEVISION SETS AND SOUPEDUP COMPUTERS THE DEVICE AN ADVANCED VERSION OF SOCALLED DIGITALSIGNAL PROCESSORS HANDLES ANALOG SIGNALS SUCH AS AUDIO AND VIDEO AS IF THEY WERE DIGITAL BITS AND CAN PROCESS HUGE CHUNKS OF THOSE SIGNALS THAT ARE EXPECTED TO FORM THE CORE OF THE INFORMATION SUPERHIGHWAY ANALYSTS SAY THE DEVICE CAPABLE OF CRUNCHING A RECORD TWO BILLION OPERATIONS A SECOND IS PART OF A LARGER SET OF TECHNOLOGY TOOLS THAT HAS PUT TI IN THE MIDDLE OF THE DEBATE OVER ADVANCED TECHNOLOGY THE PRODUCTS INCLUDE HIGHRESOLUTION DISPLAYS TI USING TINY MOVABLE MIRRORS ETCHED ON THE FACE OF COMPUTER CHIPS HAS DEVELOPED A VIDEO PROJECTION SYSTEM FOR USE IN HIGHDEFINITION TELEVISION SETS A PROTOTYPE OF THE ULTRACLEAR SCREEN WAS DEMONSTRATED AT A TRADE SHOW LAST YEAR AND TI IS NOW AGGRESSIVELY MARKETING THE SYSTEM TO TV MANUFACTURERS COMPRESSION THE COMPANY IS A BIG SUPPLIER OF CHIPS USED TO COMPRESS AUDIO AND VIDEO DATA INTO SMALLER PACKETS THE TECHNOLOGY A KEY COMPONENT OF TELECONFERENCING SYSTEMS AND INTERACTIVE VIDEO GAMES MAKES IT POSSIBLE TO SQUEEZE MORE INFORMATION THROUGH SMALLER PIPELINES SUCH AS PHONE OR CABLE LINES INSTAT A MARKET RESEARCH CONCERN SAYS SALES OF PRODUCTS THAT USE AUDIO OR VIDEO COMPRESSION WILL REACH 40 MILLION UNITS BY 1997 A 12FOLD INCREASE FROM 1993 NETWORKING TOOLS TI HAS SPENT MILLIONS OF DOLLARS DEVELOPING CHIPS FOR LOCAL AND WIDEAREA COMPUTER NETWORKS ONE SET OF DEVICES BASED ON A BEWILDERING TECHNOLOGY CALLED ASYNCHRONOUS TRANSFER MODE ENABLES COMPANIES TO SEND VOICE VIDEO AND DATA OVER SMALL CAMPUSWIDE NETWORKS AS WELL AS GLOBAL COMPUTER SYSTEMS SOFTWARE THE COMPANY IS HOPING IT CAN RECAST ITS SOFTWARE BUSINESS A PERENNIAL FINANCIAL DISAPPOINTMENT TO HELP CABLE AND PHONE COMPANIES TRACK TRAFFIC ON THE DIGITAL HIGHWAY AN ASYET UNSOLVED BILLING PROBLEM WHILE TI EXECUTIVES CONCEDE THEY DIDN'T FORESEE THE INFORMATIONSUPERHIGHWAY TIEIN WHEN THEY FIRST BEGAN DEVELOPING SOME OF THESE PRODUCTS MORE THAN A DECADE AGO THEY'RE MORE THAN WILLING TO RIDE THE TECHNOLOGY WAVE TODAY THE DIGITIZATION OF AUDIO AND VIDEO IS GOING TO BE A DOMINANT THEME SAYS RICH TEMPLETON A SENIOR VICE PRESIDENT IN TI'S SEMICONDUCTOR GROUP MR TEMPLETON IS PARTICULARLY EXCITED ABOUT THE DIGITALSIGNAL PROCESSOR BUSINESS WHICH TI EXECUTIVES VIEW AS THE CORNERSTONE OF THE COMPANY'S ADVANCEDTECHNOLOGY STRATEGY SALES OF DSPS AS THEY ARE CALLED ARE EXPECTED TO REACH 990 MILLION THIS YEAR UP 36 FROM 1993 ACCORDING TO TEMPE ARIZ CHIP ANALYST WILL STRAUSS MOST ANALYSTS EXPECT SIMILAR GROWTH DOUBLE THE CHIP INDUSTRY'S GROWTH RATE IN GENERAL AT LEAST THROUGH 1997 BECAUSE DSP CHIPS CAN HANDLE ALL KINDS OF DIFFERENT DATA AS OPPOSED TO JUST DIGITAL COMMANDS ANALYSTS EXPECT THEIR USE TO EXPAND BROADLY FROM THE VIDEO CONFERENCING AND ANSWERINGMACHINE SYSTEMS THAT NOW FORM THE CORE OF THE DSP BUSINESS INDEED TI TODAY WILL ANNOUNCE A HOST OF CUSTOMERS FOR ITS NEW MEGACHIP INCLUDING SONY CORP WHICH WILL USE THE DSP IN A SETTOP TELEVISION DEVICE AND PRINTRAK INTERNATIONAL INC A MAKER OF FINGERPRINTID SYSTEMS USED BY LAWENFORCEMENT AGENCIES OTHER APPLICATIONS TI EXECUTIVES SAY INCLUDE MOTORCONTROL SYSTEMS IN CARS THREEDIMENSIONALGRAPHICS WORKSTATIONS DIGITAL RADIO AND CORDLESS PHONES I'M CONVINCED THAT DSPS WILL DO TO ELECTRONICS WHAT THE MICROPROCESSOR DID FOR THE COMPUTER INDUSTRY SAYS MR TEMPLETON REFERRING TO THE INTEL CORP PROCESSORS THAT FORM THE CORE OF MOST OF TODAY'S PERSONAL COMPUTERS INTEL OF COURSE DOESN'T AGREE THE CHIP GIANT BELIEVES THAT MOST OF THE WORK DONE BY A DSP CAN BE HANDLED BY A HIGHSPEED MICROPROCESSOR SUCH AS THE PENTIUM INTEL'S CURRENT TOPOFTHELINE CHIP AN INTEL SPOKESMAN PREDICTS THAT DSPS WILL WORK AS COMPLEMENTS TO INTEL CHIPS FOR SPECIFIC NARROW APPLICATIONS RATHER THAN AS REPLACEMENTS INTEL THOUGH IS ONLY PART OF TI'S PROBLEM THE COMPANY WHICH BRAGS THAT IT INVENTED THE SINGLECHIP DSP A DECADE AGO NEVERTHELESS HAS WATCHED ITS MARKET SHARE SLIDE FROM 60 FOUR YEARS AGO TO 40 TODAY AND IT'S STILL SLIPPING IT IS COMPETING AGAINST COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND MOTOROLA INC THAT HAVE HUGE INTERNAL MARKETS FOR THEIR OWN CHIPS MOTOROLA FOR INSTANCE IS THE BIGGEST MANUFACTURER OF CELLULAR PHONES AMONG THE MOST POPULAR USES OF DSPS AND AT&T USES THE DEVICES IN ITS OWN COMPUTER MODEMS BECAUSE TI DOESN'T MAKE THE END EQUIPMENT ANALYSTS SAY THE COMPANY HAS HAD A TOUGH TIME COMPETING FOR CUSTOMERS WHO WANT SUPPLIERS WITH A PROVEN TRACK RECORD IN THEIR BUSINESS AND THEN THERE IS THE MATTER OF MARKETING THE COMPANY IN RECENT YEARS HAS BEEN SHARPLY CRITICIZED FOR MISSING THE COMPUTER MICROPROCESSOR MARKET IT BEGAN SELLING ITS OWN VERSION OF INTEL'S 486 CHIP ONLY LAST YEAR AND ITS NOTEBOOK COMPUTER LINE HAS BEEN ALMOST INVISIBLE DESPITE GLOWING TECHNICAL REPORTS IN THE COMPUTER TRADE PRESS TI EXECUTIVES INSIST THAT THE SUCCESS OF ITS ADVANCED TECHNOLOGY PRODUCTS WON'T DEPEND ON THE AVERAGE CONSUMER'S BUYING HABITS BUT ON WHETHER THE COMPANIES THAT MAKE THE PRODUCTS THAT THE CONSUMERS BUY WILL PICK TI STILL THE POTSHOTS AGAINST TI HAVE BEGUN ELLIOT GOLD EDITOR OF TELESPAN A NEWSLETTER THAT COVERS THE VIDEO CONFERENCING MARKET NOTES THAT THE LATEST HIGHPOWERED DSP FROM TI HAS BEEN DELAYED FOR MONTHS THEIR NEWEST CHIP IS ALREADY LATE HE SAYS I GAVE UP ON THEM TI OFFICIALS COUNTER THAT EARLIER SCUTTLEBUTT ABOUT WHEN THE CHIP WOULD BE RELEASED WAS BASED ON SPECULATION THEY NEVER EVEN CONFIRMED SO FAR THE COMPANY APPEARS TO BE PUTTING AS MUCH MUSCLE AS POSSIBLE BEHIND THE NEW LAUNCH WITH A RARE NEWSCONFERENCE AND WEEKS OF EARLY BRIEFINGS BEFORE INDUSTRY PUNDITS AND ANALYSTS MR STRAUSS THE CHIP ANALYST GIVES THE COMPANY GOOD REVIEWS FOR ITS HANDLING OF THE NEW TECHNOLOGY SO FAR THIS COULD BE THE THING THAT REVERSES TI'S TREND HE SAYS SONY CORP SAID IT PLANS TO USE A CHIP MADE BY TEXAS INSTRUMENTS INC IN TRINITRON VIDEO MONITORS THAT WILL HAVE VIDEOCONFERENCING CAPABILITIES THE COMPANY SAID IT HAS NO PLANS TO USE THE CHIP IN A SETTOP TELEVISION DEVICE AS WAS REPORTED IN WEDNESDAY'S CORPORATE FOCUS ARTICLE 9403090113 940309 POWER PLAY NEW COMPUTER CHIP HITS DESKTOP MARKET WITH INTEL IN ITS SIGHTS IBM APPLE MOTOROLA STAKE BILLIONS ON THE POWERPC FATE LIES IN THE SOFTWARE A SECRET DEAL WITH MICROSOFT BY JIM CARLTON AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL NEXT MONDAY APPLE COMPUTER INC WILL FIRE THE FIRST SALVO IN A MULTISIDED BATTLE FOR THE HEART SOUL AND PROFITS OF THE BURGEONING PERSONALCOMPUTER INDUSTRY APPLE WILL INTRODUCE A POWERFUL LINE OF MACINTOSH MACHINES BUILT AROUND A NEW KIND OF MICROPROCESSOR THE BRAINS OF A COMPUTER CALLED THE POWERPC INTERNATIONAL BUSINESS MACHINES CORP HAS ALLIED WITH APPLE AND WILL INTRODUCE ITS OWN POWERPC LINE THIS SUMMER THE WORLD'S TWO BIGGEST PERSONALCOMPUTER MAKERS AND ANOTHER ALLY CHIPMAKER MOTOROLA INC HAVE SPENT BILLIONS OF DOLLARS DEVELOPING THE POWERPC OR ENHANCED OPERATING SYSTEMS FOR IT ALL WITH THE AIM OF BREAKING UP THE LUCRATIVE HEGEMONY OF INTEL CORP AND MICROSOFT CORP THE STAKES ARE HUGE ABOUT 85 OF THE PERSONAL COMPUTERS IN THE US RUN ON INTEL'S MICROPROCESSORS AND ON MICROSOFT'S OPERATING SYSTEMS THE SOFTWARE CONTROLLING A COMPUTER'S BASIC FUNCTIONS BY GENERATING GIGANTIC VOLUMES AND CONTROLLING PRICES THEY APPEAR TO BE REAPING THE HIGHEST NET PROFIT MARGINS AMONG US COMPANIES THEIR SIZE AND ARE EXPECTED TO REPORT COMBINED EARNINGS OF MORE THAN 4 BILLION THIS YEAR MEANWHILE APPLE IBM AND MOST OTHER COMPUTER MAKERS STRUGGLE ALONG ON PAINFULLY THIN MARGINS THE STRUGGLE TO WREST THOSE RICHES AWAY IS GOING TO BE COSTLY AND COMPLICATED THE PRESIDENT OF IBM'S POWERPC DIVISION NOBUO MII TRIES TO FIGURE THINGS OUT BY RELATING STRATEGY TO GO THE ANCIENT AND MULTIFARIOUS GAME OF HIS NATIVE JAPAN IN COMBATIVE BRAINSTORMING SESSIONS WITH OTHER IBMERS THE INTENSE PUDGY EXECUTIVE HAS TAKEN TO THE BLACKBOARD DRAWING IBM AS A WHITE STONE ARCHRIVALS INTEL AND MICROSOFT ARE BLACK STONES BECAUSE THEY OWN THE MICROPROCESSORS AND OPERATING SYSTEMS THE OBJECT TAKE TERRITORY FROM THE BLACK STONES UNFORTUNATELY FOR MR MII INTEL AND MICROSOFT WON'T STAND STILL THEY ARE SPENDING SOME OF THEIR PROFITS ON NEW CHIPS AND OPERATING SYSTEMS OF THEIR OWN THAT WILL SHARPLY REDUCE IF NOT NULLIFY THE POWERPC ALLIANCE'S TECHNICAL EDGE MOREOVER THE MOTIVES OF THE ALLIANCE MEMBERS ARE DECIDEDLY MIXED PARTLY BECAUSE APPLE AND MOTOROLA ALSO COMPETE WITH IBM IN THE MARKETPLACE AND IBM ITSELF IS A HOUSE DIVIDED LAST YEAR UNBEKNOWNST TO MR MII TO OTHER TOP IBM EXECUTIVES OR TO APPLE A SMALL PART OF THE IBM TEAM WAS AUTHORIZED BY HIGHERUPS TO FORGE A PACT WITH MICROSOFT THAT SPLINTERED THE POWERPC GROUP AND THREATENS IBM'S OPERATINGSYSTEMS BUSINESS A SEPARATE UNIT THE IBM PERSONAL COMPUTER CO IS ANOTHER BLACK STONE FOR MR MII TO CONTEMPLATE IT IS THE BIGGEST MAKER OF INTELBASED COMPUTERS AND THE UNIT'S PRESIDENT ROBERT CORRIGAN HAS DOUBTS ABOUT THE POWERPC HE BELIEVES INTEL WILL KEEP CHURNING OUT CHIPS THAT RUN THE VAST UNIVERSE OF PC SOFTWARE BETTER THAN EVERYONE ELSE POWERPC ISN'T GOING TO EASILY USURP THAT SPACE MR CORRIGAN WARNS MOST OF THE INDUSTRY AGREES ROBERT W STEARNS VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR COMPAQ COMPUTER CORP THE THIRDBIGGEST PERSONALCOMPUTER MAKER AND AN INTEL CUSTOMER SAYS THE POWERPC ALLIES ARE SMOKING DOPE THERE'S NO WAY IT'S GOING TO WORK IT SEEMS INCREASINGLY PROBABLE THAT THE POWERPC ALLIANCE WON'T MAKE A MAJOR DENT IN THE INTELMICROSOFT DUOPOLY FOR SEVERAL YEARS AFTER THAT IMPROVEMENTS IN THE POWERPC CHIP AND THE AVAILABILITY OF MOREUNIVERSAL OPERATING SYSTEMS COULD ALLOW THE ALLIANCE TO MAKE SIGNIFICANT INROADS IT'S REALLY A QUESTION OF 1999 SAYS MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT A NEWSLETTER THE MOST LIKELY NEARTERM EFFECT WILL BE AN OUTBREAK OF PRICE WARS AMONG THE MAKERS OF VERY POWERFUL MICROPROCESSORS AND PERSONAL COMPUTERS AND FIERCE COMPETITION TO DEVELOP INNOVATIVE FEATURES AND SOFTWARE SUCH AS THREEDIMENSIONALQUALITY GRAPHICS AND THE ABILITY TO OPERATE COMPUTERS WITH VOICE COMMANDS THE BIGGEST AND ONLY SURE WINNER IS THE COMPUTER USER MICROSOFT IS LIKELY TO WIND UP PROSPERING NO MATTER WHO ELSE WINS AND MOTOROLA DOESN'T HAVE MUCH TO LOSE BUT THE ALREADY MEAGER PROFIT MARGINS OF APPLE IBM AND OTHER PC MAKERS MAY BE FURTHER SAPPED AND EVEN THE SWOLLEN PROFITS OF INTEL WILL BE THREATENED APPLE IN FACT MAKES NO BONES ABOUT ITS WILLINGNESS TO SLASH PRICES RELENTLESSLY I WELCOME THE PRICE WARS SAYS IAN W DIERY EXECUTIVE VICE PRESIDENT OF APPLE'S PERSONALCOMPUTER DIVISION WHO VOWS TO KEEP MACINTOSH POWERPCS MORE THAN 200 BELOW COMPUTERS RUNNING ON INTEL'S MOST POWERFUL LINE OF MICROPROCESSORS THE POWERPC EFFORT WAS BORN OF BAD BLOOD AND MUTUAL NEED IBM ALL BUT HANDED MARKET DOMINANCE TO MICROSOFT AND INTEL WHEN IT CHOSE THEIR CENTRAL PRODUCTS FOR ITS FIRST PC IN 1981 BY 1990 IBM SAW THAT THEY WERE REAPING MOST OF THE PROFIT IN THE SAME YEAR IBM SPLIT BITTERLY WITH MICROSOFT OVER AN AGREEMENT TO JOINTLY DEVELOP IBM'S OS/2 OPERATING SYSTEM WHICH WAS GETTING TROUNCED BY MICROSOFT'S SIMPLER WINDOWS THEN APPLE'S PROFIT MARGINS CAME UNDER ASSAULT FROM IBM CLONES WHILE MOTOROLA WHOSE ONLY LARGE COMPUTER CUSTOMER IS APPLE SAW ITSELF SHUT OUT FROM THE REST OF THE MARKET SO WHEN IBM APPROACHED APPLE IN 1990 AND APPLE IN TURN TALKED TO ITS PARTNER MOTOROLA ALL THREE PARTIES WERE ONLY TOO HAPPY TO PROCEED IN ORDER TO REGAIN THE HIGH GROUND OR AT LEAST SOME PROFITS THE MAIN GOAL WAS TO CREATE BETTER CHEAPER COMPUTERS AROUND A NEW STREAMLINED MICROPROCESSOR THE CHIP WAS EXPECTED TO RUN PROGRAMS AN AVERAGE OF TWO TO FOUR TIMES THE SPEED OF THE BEST MOTOROLA AND INTEL CHIPS AT THAT TIME AND THEORETICALLY THE POWERPC COULD BE MADE AT A FRACTION OF INTEL'S COSTS BECAUSE IT HAS A SIMPLER SMALLER DESIGN MOTOROLA AND IBM AGREED TO BEAR THE COSTS OF DEVELOPING THE CHIP WHICH WAS OF IBM DESIGN APPLE SAID IT WOULD MODIFY ITS WELLREGARDED OPERATING SOFTWARE CALLED SYSTEM 7 TO RUN ON THE POWERPC AND IBM WOULD USE OS/2 WHICH CAN RUN SOFTWARE WRITTEN FOR WINDOWS SO POWERPC MACHINES WOULD BE ABLE TO RUN ALL THE APPLICATIONS SOFTWARE SUCH AS SPREADSHEETS AND WORD PROCESSORS DESIGNED FOR EITHER THE MAC OR INTEL WORLD AS IT TURNS OUT THE POWERPC CHIP IS INDEED A TINY WONDER THE FIRST VERSION THE 601 MADE BY IBM COSTS AS LITTLE AS 70 EACH TO MAKE COMPARED WITH ROUGHLY 400 FOR INTEL'S TOP PENTIUM CHIP ESTIMATES MR SLATER THE CHIP EXPERT THE POWERPC LINE IS EXPECTED TO MAINTAIN A COST ADVANTAGE OF SEVERAL HUNDRED DOLLARS PER CHIP OVER FUTURE INTEL MICROPROCESSORS AN EDGE APPLE AND IBM INTEND TO USE IN UNDERPRICING INTELBASED PCS FOR EXAMPLE APPLE PLANS TO SELL MACINTOSH 601S AS LOW AS 1750 EACH COMPARED WITH A CURRENT 2500 TO 3000 FOR THE CHEAPEST PENTIUM PCS AS FOR SPEED DEMONSTRATIONS OF MACINTOSH 601S SHOW THEM RACING THROUGH REWRITTEN PROGRAMS SUCH AS ADOBE SYSTEMS INC'S ILLUSTRATOR AT TWO TO FIVE TIMES THE SPEED OF APPLE'S CURRENT TOP LINE THE NEXT GENERATION POWERPC FOR DESKTOP COMPUTERS THE 604 WILL BE SHIPPED BY MOTOROLA AND IBM LATE THIS YEAR AND IS EXPECTED TO RUN AT LEAST TWICE AS FAST AS THE 601 AND CURRENT PENTIUM CHIPS THE POWERPC'S RAW PERFORMANCE HAS THE COMPETITIVE JUICES FLOWING AMONG THE ALLIES SOME POWERPC DEMONSTRATION MACHINES AT APPLE'S HEADQUARTERS IN CUPERTINO CALIF RESPOND WITH HASTA LA VISTA BABY WHEN ASKED ABOUT PENTIUM THROUGH A SPEECHRECOGNITION FEATURE RECENTLY THE 604 DEVELOPMENT CREW IN AUSTIN TEXAS STAGED A CELEBRATION IN WHICH A ROOMFUL OF IBM AND MOTOROLA ENGINEERS CHEERED WILDLY AS A MOCK POWERPC BATTLESHIP SANK BATTLESHIP INTEL THERE ARE HOWEVER SOME GLARING WEAKNESSES IN THE ALLIES' STRATEGIES THAT RENDER THE POWERPC'S PRICE ADVANTAGE ALMOST IRRELEVANT FOR THE SHORT TERM FOREMOST IS A SOFTWARE PROBLEM EXISTING MACINTOSH DOS OR WINDOWS APPLICATIONS CAN'T RUN AT THE POWERPC MACHINES' NATIVE SPEED BECAUSE THE MAC OPERATING SOFTWARE WAS DESIGNED FOR A DIFFERENT KIND OF MOTOROLA MICROPROCESSOR AND DOS AND WINDOWS SYSTEMS FOR INTEL CHIPS LIKE ADOBE'S ILLUSTRATOR ALL OF THOSE APPLICATIONS HAVE TO BE REWRITTEN TO TAKE ADVANTAGE OF THE POWERPC'S STRENGTHS THEIR CURRENT VERSIONS DON'T RUN ANY FASTER ON POWERPC COMPUTERS THAN ON OLDER MACS OR COMPUTERS USING INTEL'S OLDER 386 AND 486 CHIP LINES IN CONTRAST UNMODIFIED DOS AND WINDOWS PROGRAMS RUN CONSIDERABLY FASTER ON PENTIUM CHIPS WHY THEN SHOULD A COMPUTER USER BUY A POWERPC FOR 2000 WHEN FAR CHEAPER MACHINES WILL RUN PROGRAMS JUST AS FAST IBM ASSERTS THAT SOFTWARE IMPROVEMENTS WILL BOOST THE SPEED AT WHICH ITS POWERPCS RUN WINDOWS PROGRAMS BUT THE KEY TO THE POWERPC'S FUTURE IS THE ALACRITY WITH WHICH SOFTWARE DEVELOPERS REWRITE THEIR PROGRAMS TO TAKE ADVANTAGE OF ITS SPEED USERS OF OLDER MAC AND INTELBASED MACHINES WON'T FLOCK TO POWERPCS UNTIL THEN THE PROBLEM IS NINE OUT OF 10 DEVELOPERS PRODUCE THEIR SOFTWARE FIRST FOR THE INTELMICROSOFT CAMP FOR THE MOST PART WE WILL GET ON PENTIUM FIRST AND THEN LOOK AT POWERPC SAYS ALEX MORROW A GENERAL MANAGER AT LOTUS DEVELOPMENT CORP MAKER OF THE BESTSELLING 123 SPREADSHEET AND LOTUS NOTES THAT IS WHERE THE INSTALLED BASE IS TODAY FEARS ABOUT BECOMING INCREASINGLY ISOLATED FROM THE HUGE WINDOWS CAMP OF DEVELOPERS HELPED LEAD TO THE SECRET PACT WITH MICROSOFT THAT SO DISRUPTED IBM'S POWERPC GROUP IN THE FALL OF 1992 A FACTION WITHIN IBM'S POWERPC TEAM CONCLUDED THAT MICROSOFT'S NEXT BLOCKBUSTER SUCCESS WOULD BE A POWERFUL NEW OPERATING SYSTEM CALLED WINDOWS NT GETTING THE RIGHTS TO NT WOULD GIVE POWERPC SALES A POWERFUL BOOST THE FACTION BELIEVED AND WOULD PROVIDE ACCESS TO ALL THE BESTSELLING SOFTWARE THAT DEVELOPERS WOULD PAINSTAKINGLY MODIFY TO TAKE ADVANTAGE OF NT THE FACTION CONCLUDED THE POWERPC VENTURE WOULDN'T SUCCEED AGAINST INTEL'S MIGHT WITHOUT IT THEY WANTED TO MAKE A DEAL WITH MICROSOFT AND PAY FOR THE CONSIDERABLE COSTS OF MODIFYING NT TO RUN ON THE POWERPC IN FIERCE DEBATE OTHER IBMERS ANGRILY OPPOSED THE MOVE SAYING IT WOULD UNDERMINE IBM'S ESTIMATED 1 BILLION INVESTMENT IN OS/2 MANY ALSO STILL FELT BETRAYED BY MICROSOFT'S EARLIER DECISION TO ABANDON THE JOINT DEVELOPMENT OF OS/2 BUT IN LATE 1992 THE PRONT FACTION RECEIVED PERMISSION FROM IBM'S TOP TECHNOLOGY OFFICER JACK KUEHLER TO NEGOTIATE SECRETLY WITH MICROSOFT IN PARTNERSHIP WITH MOTOROLA BECAUSE OF THE BAD BLOOD BETWEEN IBM AND MICROSOFT MOTOROLA EXECUTIVES WOULD DO THE NEGOTIATING FOR MICROSOFT'S CAGEY CHAIRMAN WILLIAM GATES THE DEAL WAS A CAN'TLOSE PROPOSITION NT WOULD HAVE ANOTHER COMPUTER CHIP TO RUN ON AND HE WOULDN'T HAVE TO PAY FOR MODIFYING IT HE QUICKLY CAME TO TERMS WHEN ENGINEERS AT IBM AND MOTOROLA BEGAN THE WORK IN LATE JANUARY 1993 IN AUSTIN ONLY A FEW PEOPLE KNEW ABOUT THE PLAN MR MII WHO DIDN'T BECOME PRESIDENT OF POWERPC UNTIL JULY 1993 FOUND OUT ONLY AFTER THE FACT EVEN TODAY HE ONLY GRUDGINGLY ACKNOWLEDGES THE EFFORT AND SAYS THAT NT ISN'T A PRIORITY FOR IBM BECAUSE IT ISN'T A VERY GOOD SYSTEM APPLE WHICH COULD ONLY LOSE IF NT TOOK OFF ON THE POWERPC PLATFORM WAS NEVER TOLD AT ALL AS THE SECRET PROJECT BECAME MORE WIDELY KNOWN AT IBM IT CREATED ABSOLUTE TURMOIL SAYS ONE FORMER IBM EXECUTIVE INVOLVED IN THE FIGHT TO THE CRITICS IT WAS ANOTHER EXAMPLE OF IBM'S CONFUSION AND INDECISION WE WERE FEEDING THE ENEMY SAYS ANOTHER IBM OFFICER BEFORE IBM ANNOUNCED ITS NT DEAL IN NOVEMBER A FEW ENGINEERS LINKED TO POWERPC RESIGNED AS IT NOW TURNS OUT MR MII'S RESERVATIONS ABOUT NT COULD TURN OUT TO BE RIGHT WHILE WELLSUITED FOR TYING NETWORKS OF COMPUTERS TOGETHER NT HAS PROVED TOO COMPLEX AND CUMBERSOME TO BECOME AN OPERATING SYSTEM FOR INDIVIDUAL DESKTOP COMPUTERS AT LEAST FOR THE NEXT SEVERAL YEARS MICROSOFT HAS SOLD ONLY 300000 NT COPIES IN EIGHT MONTHS THE NEXT BLOCKBUSTER OPERATING SYSTEM MOST INDUSTRY EXECUTIVES BELIEVE WILL BE AN UPGRADE OF WINDOWS CODENAMED CHICAGO AND IT RUNS ONLY ON INTEL CHIPS IBM OFFICIALS SAY THEY WILL FIND A WAY TO GET CHICAGO APPLICATIONS TO WORK WELL ON OS/2 BUT MR CORRIGAN THE CHIEF OF BIG BLUE'S INTELBASED BUSINESS OBVIOUSLY HAS HIS RESERVATIONS YOU CAN'T WALK AWAY FROM THE FACT THAT PEOPLE ARE MAKING INTELBASED APPLICATIONS HE SAYS HIS GROUP WILL MANUFACTURE THE POWERPC BUT WON'T SPEND ANY MONEY OR EFFORT MARKETING AND DISTRIBUTING IT THAT'S UP TO MR MII'S DIVISION IBM'S STRATEGY IS THE RISKIEST AND MOST CONFLICTED ONE OF THE POWERPC PARTNERS BECAUSE ITS SUCCESS DEPENDS SOLELY ON TAKING BUSINESS AWAY FROM MAKERS OF INTELBASED COMPUTERS RUNNING ON WINDOWS INCLUDING IBM APPLE DOESN'T HAVE TO DO THAT TO THRIVE IN FACT APPLE'S MAIN GOAL IS SIMPLY TO PROTECT ITS CURRENT 14 SHARE OF THE US MARKET MACINTOSH'S SYSTEM 7 SOFTWARE IS CONSIDERED SUPERIOR TO WINDOWS WHICH IS OFTEN CRITICIZED BY COMPUTER COGNOSCENTI AS A CLUNKY RIPOFF OF THE MAC LOOK AND FEEL BUT APPLE HAS BEEN HARDPRESSED TO MATCH THE PRICE AND VARIETY OF INTELBASED MACHINES A CONTINUOUS PRICE WAR HAS CUT ITS OPERATING MARGINS BY HALF IN THE PAST 18 MONTHS OFFICIALS AT APPLE SAY THE POWERPC FINALLY GIVES IT ROOM TO CONSISTENTLY OFFER PRICES FOR MACS BELOW THOSE FOR COMPARABLE INTELBASED MACHINES MOREOVER IT HAS LESS OF A PROBLEM WITH ITS SOFTWARE DEVELOPERS BECAUSE MANY OF THEM DEPEND HEAVILY ON THE MACINTOSH AND ARE RAPIDLY REWRITING THEIR APPLICATIONS TO TAKE ADVANTAGE OF THE POWERPC'S SPEED MICROSOFT IS THE LEADING DEVELOPER OF MACINTOSH SOFTWARE AND PLANS TO HAVE VERSIONS READY FOR THE POWERPC IN A MATTER OF MONTHS SO THE POWERPC LOOKS AS IF IT MIGHT WORK AS A DEFENSIVE STRATEGY APPLE ALSO WANTS TO GO ON THE OFFENSIVE INCREASING ITS WORLDWIDE MARKET SHARE OVER THE NEXT THREE TO FIVE YEARS BY MORE THAN FIVE PERCENTAGE POINTS ACCORDING TO MR DIERY TOWARD THAT END APPLE IS HEAVILY MARKETING SOME NEW SOFTWARE THAT ALLOWS ITS POWERPC MACS TO RUN WINDOWS APPLICATIONS AT THE SPEED OF OLDER SLOWER INTELBASED MACHINES THE IDEA IS TO ATTRACT NEW COMPUTER USERS WHO WANT MORE FLEXIBILITY OR PEOPLE AND BUSINESSES USING BOTH MAC AND INTELBASED MACHINES APPLE COULD ALSO ENLIST NEW ALLIES BY LICENSING ITS MACINTOSH OPERATING SYSTEM FOR THE FIRST TIME IT HAS VOWED TO DO THAT IT'S JUST A MATTER OF WHEN AND WITH WHOM SAYS JAMES S GABLE THE PRODUCT MANAGER FOR THE MAC POWERPC BUT APPLE STILL SEEMS IMPRISONED IN A BOX WHILE BLAZINGFAST VERSIONS OF MAC APPLICATIONS WILL ALSO BE AVAILABLE ON INTELBASED MACHINES HUNDREDS OF APPLICATIONS MODIFIED FOR WINDOWS ON PENTIUM WON'T BE AVAILABLE FOR MACS APPLE'S COMPATIBILITY SOFTWARE FOR WINDOWS IS TOO SLOW AND EXPENSIVE OTHER MAJOR COMPUTER MAKERS DON'T HAVE MUCH INTEREST IN MAKING MACS AND SAY APPLE IS ASKING FOR TOO MANY LICENSING RESTRICTIONS FOR ALL THREE POWERPC ALLIES THE WORST NEWS IS THAT INTEL IS AGGRESSIVELY CUTTING PRICES ON PENTIUMS AND SPENDING BILLIONS OF DOLLARS ON NEW MICROPROCESSOR DESIGNS AND NEW PLANTS TO REDUCE THE ONCECOMMANDING LEAD OF THE POWERPC ON MONDAY INTEL INTRODUCED NEW VERSIONS OF THE PENTIUM THAT ARE 50 FASTER THAN THE FIRST GENERATION AND SLIGHTLY FASTER THAN THE POWERPC LINE THE MOVE STARTED A BLIZZARD OF ANNOUNCEMENTS BY PC MAKERS THAT THEY WILL SHIP WITHIN A MONTH HIGHEND MACHINES FOR 3500 TO 5000 ROUGHLY THE SAME AS APPLE'S MOST POWERFUL MACINTOSHES ANDREW GROVE INTEL'S FEISTY CEO SAYS HE IS EVEN GRATEFUL TO THE POWERPC ALLIANCE FOR MAKING HIS COMPANY MORE AGGRESSIVE THINGS LIKE POWERPC DON'T LET YOU SIT ON YOUR REAR END HE SAYS 9403090112 940309 INTERNATIONAL HITACHI PLANS PHILIPPINE UNIT TOKYO JAPANESE ELECTRICAL MACHINERY MAKER HITACHI LTD PLANS TO ESTABLISH A SUBSIDIARY TO MAKE DISK DRIVES IN THE PHILIPPINES IN MAY HITACHI SAID IT WOULD NAME THE COMPANY HITACHI COMPUTER PRODUCTS ASIA CORP AND CAPITALIZE IT AT 112 BILLION PHILIPPINE PESOS 414 MILLION THE SUBSIDIARY IS TO COMPETE IN THE LOW END OF THE SMALLDISKDRIVE MARKET PRODUCTION IS TO START IN JUNE 1995 WITH EXPECTED SALES OF ABOUT 17 BILLION YEN 1607 MILLION IN THE FISCAL FIRST YEAR HITACHI HAS BEEN PRODUCING 35INCH AND 525INCH DISK DRIVES BUT IN SEPTEMBER ENTERED AN AGREEMENT WITH MINISTOR PERIPHERALS CORP OF THE US TO LICENSE TECHNOLOGY FOR 25INCH AND 18INCH UNITS 9403090111 940309 F&M HALLMARK PURCHASE PACT WINCHESTER VA F&M NATIONAL CORP SAID ITS AGREEMENT TO ACQUIRE HALLMARK BANK & TRUST CO SPRINGFIELD VA WILL COST ABOUT 193 MILLION IN STOCK THE TWO BANKS ANNOUNCED A PRELIMINARY MERGER AGREEMENT IN JANUARY BUT DIDN'T ANNOUNCE TERMS UNDER THE NEWLY PROPOSED DEFINITIVE AGREEMENT F&M A BANK HOLDING COMPANY WILL EXCHANGE SHARES OF ITS COMMON STOCK HAVING AN AGGREGATE MARKET VALUE OF 1113 FOR EACH SHARE OF HALLMARK BANK AS OF DEC 31 HALLMARK HAD MORE THAN 17 MILLION SHARES OUTSTANDING THE AGREEMENT MUST BE APPROVED BY REGULATORY AUTHORITIES AND THE STOCKHOLDERS OF HALLMARK BANK F&M REPORTED TOTAL ASSETS OF 14 BILLION AS OF DEC 31 WHILE HALLMARK'S TOTAL ASSETS WERE 118 MILLION 9403090110 940309 RJR'S HUGE PREFERRED OFFERING RUNS INTO RESISTANCE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE LATEST ATTEMPT TO SHORE UP THE LARGEST LEVERAGED BUYOUT IN CORPORATE HISTORY FACES A TOUGH SELL ON WALL STREET RJR NABISCO HOLDINGS CORP IS ATTEMPTING TO RAISE 2 BILLION THROUGH A PREFERRED STOCK OFFERING AIMED AT IMPROVING RJR'S FINANCIAL FLEXIBILITY FULLY FIVE YEARS AFTER RJR'S 25 BILLION BUYOUT BY KOHLBERG KRAVIS ROBERTS & CO BUT INVESTORS ARE WARY I DON'T KNOW WHO THEY ARE GOING TO SELL THIS TO SAYS GARY LANGBAUM DIRECTOR OF EQUITY RESEARCH FOR KEMPER FINANCIAL SERVICES INC A BIG CHICAGO INVESTMENT COMPANY I WON'T PUT KEMPER INVESTORS INTO THIS ONE OF THE BIGGEST RISK FACTORS IS THAT THE NEW PREFERRED SHARES ARE TIED TO RJR'S LESSDESIRABLE TOBACCO BUSINESS IF RJR EXECUTES A LONGCONTEMPLATED BREAKUP OF ITS FOOD AND TOBACCO UNITS THE DAY AFTER THE OFFERING WAS ANNOUNCED ON FEB 24 THE FOOD AND DRUG ADMINISTRATION RELEASED A LETTER STATING THAT IT WAS CONSIDERING EVIDENCE THAT MAY RESULT IN THE FDA REGULATING CIGARETTES AS A DRUG WHILE SUCH A STEP IS IMPROBABLE THE NEWS SPOOKED TOBACCO INVESTORS HELPING FUEL AN 85 DECLINE IN RJR'S STOCK PRICE SINCE THE DEAL WAS ANNOUNCED INVESTORS ARE ALSO WORRIED ABOUT THE FUTURE 20 EARNINGS DILUTION ONCE THE SHARES CONVERT TO RJR COMMON ANALYST MARC I COHEN OF GOLDMAN SACHS & CO LOWERED HIS 1994 RJR EARNINGS ESTIMATE BY FOUR CENTS A SHARE TO 40 CENTS MR COHEN SAID HE WAS SOMEWHAT DISAPPOINTED THAT RJR IS ISSUING ADDITIONAL EQUITY BUT CONTINUES TO RECOMMEND THE STOCK NOR DOES RJR HAVE A STELLAR TRACK RECORD ON WALL STREET THE SHARES OF A SIMILAR RJR OFFERING IN 1991 HAVE LOST ABOUT 30 OF THEIR VALUE THOSE PEOPLE THAT LOST MONEY IN THE LAST DEAL ARE CERTAINLY NOT GOING TO REUP SAYS MR LANGBAUM I INVESTED IN THIS COMPANY BECAUSE KKR WAS SUPPOSED TO BE THE HOMERUN KINGS OF LEVERAGED BUYOUTS SAYS JOHN E BRUNHAMMER AN INVESTOR IN DELAWARE WHO OWNS ABOUT 50000 OF RJR STOCK INSTEAD HE SAYS THE LAST FEW YEARS HAVE BEEN EXTREMELY FRUSTRATING FOR ME SOME ANALYSTS SAY THAT IN ORDER TO COMPLETE THE DEAL RJR MAY HAVE TO OFFER A RICH DIVIDEND OF 85 OR MORE AS WELL AS REDUCING THE ISSUE'S TIES TO THE TOBACCO BUSINESS MR LANGBAUM SAYS IT WOULD TAKE A 9 DIVIDEND FAR HIGHER THAN THOSE OFFERED ON SIMILAR DEALS TO MAKE KEMPER RETHINK ITS POSITION EVER SINCE KKR COMPLETED THE BUYOUT RJR HAS BEEN PLAGUED BY FINANCIAL WOES RELATED TO ITS JUNKBOND FINANCING DETERIORATION OF THE TOBACCO BUSINESS AND MANAGEMENT TURMOIL CHUCK HUNTER A SENIOR PORTFOLIO MANAGER WITH THE MONTANA INVESTMENT BOARD AN INVESTOR IN THE KKR PARTNERSHIP THAT BOUGHT RJR SAYS KKR IS OUT THERE SCRAMBLING AROUND TRYING TO FIGURE OUT HOW TO MAKE THE BUYOUT WORK THE NEW OFFERING FOLLOWS LAST YEAR'S ABORTED ATTEMPT TO INCREASE THE VALUE OF RJR'S SHARES BY SELLING SEPARATE SHARES LINKED TO THE PERFORMANCE OF THE FOOD BUSINESS JUST AFTER THAT DEAL WAS ANNOUNCED A CIGARETTE PRICE WAR BROKE OUT AND RJR'S FORMER CHAIRMAN LOUIS V GERSTNER JR BOLTED TO LEAD INTERNATIONAL BUSINESS MACHINES CORP THE NEW OFFERING OF PERCS OR PREFERRED EQUITY REDEMPTION CUMULATIVE SHARES IS WIDELY SEEN AS A PRECURSOR TO TRYING TO SELL OFF THE TOBACCO BUSINESS OR ANOTHER MAJOR TRANSACTION DESIGNATED TO LIFT RJR'S STOCK VALUE PERCS GENERALLY CARRY ALL THE RISK OF A COMMON STOCK WITHOUT OFFERING ALL THE POSSIBLE REWARD THEY CONVERT INTO SHARES OF THE ISSUING COMPANY AFTER THREE YEARS BUT INVESTORS' POTENTIAL FOR CAPITAL GAINS IS LIMITED TO 30 TO 40 ABOVE THE COMMONSTOCK PRICE AT THE TIME OF THE ISSUE TO COMPENSATE FOR THE LIMITED GAINS PERCS GENERALLY CARRY A RELATIVELY HIGH DIVIDEND RJR COMMON SHARES CURRENTLY DON'T PAY A DIVIDEND AT ALL TO TRY TO SELL THE DEAL RJR HAS RECONSTITUTED THE TEAM THAT AGGRESSIVELY PUSHED THE FAILED FOODSTOCK DEAL LAST YEAR MORGAN STANLEY & CO WHICH INVENTED PERCS WILL RUN THE DEAL ASSISTED BY SMITH BARNEY SHEARSON INC ROBERT F GREENHILL CHAIRMAN AND CHIEF EXECUTIVE OF SMITH BARNEY WAS AT MORGAN LAST YEAR AND LED THE EFFORTS TO MAKE THE FOODSTOCK OFFERING FLY WITH THE OFFERING IN REGISTRATION RJR KKR AND THE TWO INVESTMENT BANKING FIRMS DECLINED TO COMMENT BUT PEOPLE CLOSE TO RJR SAY THAT IT IS PREMATURE TO SPECULATE ABOUT POSSIBLE CHANGES IN THE DEAL BECAUSE MARKETING EFFORTS HAVEN'T BEGUN THEY ALSO SAY IF INTEREST RATES DON'T RISE THAT THE SHARES WILL PROBABLY CARRY A DIVIDEND OF 825 BUT EVEN THAT COUPON IS TELLINGLY EXPENSIVE COMPARED WITH SIMILAR OFFERS IN 1991 WHEN INTEREST RATES WERE MUCH HIGHER FORD MOTOR CO SOLD A 23 BILLION PREFERRED ISSUE THAT OFFERED A YIELD OF 84 AND THE DIVIDEND ON A 1 BILLION PREFERRED ISSUE ALSO SOLD IN 1991 BY GENERAL MOTORS CORP AIMED AT INDIVIDUAL INVESTORS TOPPED 9 THE 2 BILLION RJR PERC IN 1991 PAID AN 83 YIELD THE YIELD ON THE NEW DEAL MIGHT BE SUBSTANTIALLY LOWER THAN THAT IF RJR'S BUSINESS HAD HELD UP PEOPLE CLOSE TO RJR SAY THE DROP IN THE SHARE PRICE WAS EXPECTED GIVEN THE DILUTIVE IMPACT OF ISSUING 300 MILLION NEW SHARES BUT PEOPLE CLOSE TO THE COMPANY SAY THAT THE DEAL WON'T BE AS DILUTIVE AS IT APPEARS AT FACE VALUE BECAUSE THE COMPANY WILL PUT THE 2 BILLION TO WORK EARNING PROFITS FOR THE COMPANY ARE YOU ASKING ME AM I HAPPY ABOUT THEM DILUTING US' NO IT WASN'T IN THE GAME PLAN BUT IT DOESN'T MAKE ME WANT TO BACK AWAY SAYS MICHAEL JAMISON A MANAGING DIRECTOR OF BRANDYWINE ASSET MANAGEMENT A PENSION FUND MANAGEMENT COMPANY THAT OWNS RJR STOCK POTENTIAL INVESTORS ARE TROUBLED BY THE FACT THAT THE NEW SHARES ARE LINKED TO RJR'S TOBACCO BUSINESS THE TOBACCO TAINT LOOMS SO LARGE THAT KEMPER'S MR LANGBAUM AND OTHERS PREDICT THAT RJR WILL BE FORCED TO RESTRUCTURE THE DEAL EVEN THOUGH PEOPLE FAMILIAR WITH RJR SAY THAT AMENDING THE DEAL ISN'T EVEN BEING REMOTELY CONSIDERED ULTIMATELY THEY MAY BE FORCED TO AMEND IT AND GIVE YOU PARTICIPATION IN BOTH THE FOOD AND TOBACCO BUSINESS SAYS MR LANGBAUM WHY SHOULD I TAKE SOMETHING THAT IS CONVERTIBLE INTO THE LEAST ATTRACTIVE OF THE TWO BUSINESSES 9403090109 940309 CREDIT MARKETS TREASURY BONDS GIVE UP MONDAY'S PRICE GAINS MOVE BY GE CAPITAL IS UPSETTING SOME INVESTORS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BEARS REGAINED CONTROL OF THE BOND MARKET YESTERDAY PUSHING PRICES SHARPLY LOWER AFTER EARLY GAINS FIZZLED AND AMID CONFUSION OVER COMMENTS BY A FEDERAL RESERVE OFFICIAL THERE HAS ALSO BEEN A FAIR AMOUNT OF CONFUSION FOR HOLDERS OF CERTAIN BONDS ISSUED BY GE CAPITAL CORP THE FINANCING ARM OF GENERAL ELECTRIC CO THE COMPANY HAS MADE THE HIGHLY UNUSUAL DECISION NOT TO REDEEM 500 MILLION OF 30YEAR FLOATINGRATE BONDS EVEN THOUGH IT ANNOUNCED IN LATE JANUARY THAT IT WAS GOING TO REDEEM THEM SOME BOND INVESTORS ARE WORRIED THAT THE COMPANY MAY BE SETTING A PRECEDENT THAT WILL ALLOW OTHER BORROWERS TO MAKE REDEMPTION ANNOUNCEMENTS AND THEN RENEGE ON THEM AT THE LAST MOMENT IF INTEREST RATES GO THE WRONG WAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY A POINT OR NEARLY 10 FOR A BOND WITH 1000 FACE VALUE TO 92 3/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 687 FROM MONDAY'S 679 THERE WAS NO SINGLE APPARENT REASON FOR THE SELLING IN THE TREASURY MARKET PARTICIPANTS SAID RATHER THEY CITED A GENERAL SENSE OF BEARISHNESS ANY RISE IN PRICES TRADERS SAID WAS QUICKLY MET BY SELLING THE MARKET HAS PROVED IT HAS A LOT OF DIFFICULTY HOLDING ONTO HIGHER PRICES SAID JERRY ZUKOWSKI ECONOMIST AT PAINEWEBBER INC THE BOND MARKET BEGAN THE DAY HEADING HIGHER BOLSTERED BY OVERSEAS BUYING FROM A VARIETY OF SOURCES PLAYERS SAID AS US TRADING BEGAN THE PUSH HIGHER WAS INITIALLY SUSTAINED ALTHOUGH PLAYERS SAID MOST OF THE BUYING WAS TO COVER SHORTS IN A SHORT SALE A TRADER BETS THAT PRICES WILL DECLINE AND SO SELLS BORROWED SECURITIES IN THE HOPE OF BUYING THEM BACK AT LOWER PRICES INITIALLY BUYERS WERE ENCOURAGED BY REPORTS OF COMMENTS MONDAY NIGHT BY FEDERAL RESERVE GOVERNOR LAWRENCE LINDSEY MR LINDSEY WAS REPORTED BY SOME NEWS ORGANIZATIONS AS SAYING THAT HE EXPECTED SHORTTERM INTEREST RATES TO BE THREE SOMETHING THIS YEAR TRADERS INTERPRETED THE REMARK AS MEANING THAT THE FED WASN'T GOING TO AGGRESSIVELY PUSH SHORTTERM RATES HIGHER ANYTIME SOON BUT AN AIDE TO MR LINDSEY PLAYED DOWN THE REMARK SAYING IT WAS MISINTERPRETED THE AIDE SAID MR LINDSEY WAS TAKING A HUMOROUS VIEW OF ECONOMIC FORECASTING RECENTLY ACCORDING TO THE TEXT OF THE SPEECH WHICH WAS DELIVERED IN BALTIMORE MR LINDSEY SAID WHATEVER THE QUESTION IS THE ANSWER IS THREE WHAT WILL GROWTH BE ABOUT THREE WHAT WILL INFLATION BE ABOUT THREE WHAT ABOUT SHORT RATES THREE SOMETHING ONCE MR LINDSEY'S COMMENTS WERE CLARIFIED BOND PRICES FELL FROM THEIR EARLY HIGHS AS THE MARKET WAS UNABLE TO BREAK ABOVE KEY TECHNICAL CHART POINTS AT MIDMORNING WITH SENTIMENT IN THE BOND MARKET SO NEGATIVE BUYERS ARE QUICK TO PULL OUT SAID WILLIAM SHEA A SENIOR VICE PRESIDENT AT NIKKO SECURITIES CO INTERNATIONAL PETER HIRSCH MANAGER OF GOVERNMENT SECURITIES TRADING AT SALOMON BROTHERS INC SAID THAT SELLERS SIMPLY WORE THE MARKET DOWN EVEN WHEN THE MARKET WAS POSTING GAINS EARLY IN THE SESSION WE SAW BETTER SELLING MR HIRSCH SAID THE SELLING ABATED AT MIDDAY BUT BEGAN ANEW DURING THE AFTERNOON IN RESPONSE TO RETAILSALES FIGURES THAT WERE SLIGHTLY STRONGER THAN EXPECTED THE JOHNSON REDBOOK SERVICE REPORTED CHAINSTORE AND DEPARTMENTSTORE SALES ROSE 07 DURING THE FIRST WEEK OF MARCH COMPARED WITH FEBRUARY'S FIRST WEEK ANALYSTS AND TRADERS WERE INCLINED TO WRITE OFF THE CONFUSION OVER MR LINDSEY'S COMMENTS AS A TEMPEST IN A TEAPOT THE DEBATE OVER WHAT MR LINDSEY SAID AND DID NOT SAY REALLY AMOUNTED TO A HILL OF BEANS SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES THE CONCLUSION THAT YOU HAVE TO DRAW IS THIS MARKET IS STILL PRETTY SICK AS THE TREASURY MARKET TEETERED YESTERDAY SOME INVESTORS IN GE CAPITAL'S 500 MILLION ISSUE OF 30YEAR FLOATINGRATE BONDS FUMED THE COMPANY TOLD INVESTORS ON JAN 26 THAT IT WOULD REDEEM THE NOTES AT FACE VALUE ON MARCH 15 BUT ON FEB 15 JUST 11 DAYS AFTER THE FED STARTED TO BOOST SHORTTERM INTEREST RATES THE COMPANY ANNOUNCED THAT IT WOULDN'T REDEEM THE BONDS AFTER ALL UNDER THE TERMS OF THE INDENTURE EVERY THREE YEARS IN MARCH THE COMPANY HAS THE OPTION OF EITHER BUYING THE BONDS BACK FROM INVESTORS OR RESETTING THEIR COUPONS AT A RATE EQUAL TO 108 OF THE RATE ON THREEYEAR US TREASURY NOTES THIS WOULD MEAN THAT THE COUPON WOULD DROP FROM ITS CURRENT 8 ACCORDING TO ONE INVESTOR TO SOMETHING AROUND 56 THE DECISION ANGERED DANIEL NAGY A BOND DEALER AT DRAKE CAPITAL SECURITIES IN LOS ANGELES THEY DID NOT ANNOUNCE THAT THIS WAS A MISTAKE THE SAME DAY OR THE NEXT DAY OR EVEN THAT WEEK HE SAID THEY LEFT IT OUT THERE AND PEOPLE BOUGHT AND SOLD THESE NOTES ASSUMING THEY WOULD BE REDEEMED AN OFFICIAL AT GE CAPITAL SAID THE DECISION TO REDEEM WAS AN ERROR FURTHERMORE THE OFFICIAL ARGUED THAT IT MAKES NO SENSE FOR THE COMPANY TO CALL THE DEBT NOW AND ISSUE LONGTERM FIXEDRATE DEBT TO REPLACE IT WHICH SOME INVESTORS BELIEVED WAS THE COMPANY'S ORIGINAL INTENTION ERROR OR NOT THE GE DECISION SETS A BAD PRECEDENT SAID ONE LARGE INVESTOR IN THE BONDS ALL FIXEDINCOME INVESTORS SHOULD BE CONCERNED ABOUT IT BECAUSE GE HAS TAKEN A VERY LIBERAL INTERPRETATION OF AN INDENTURE HE SAID ANY MONEYMARKET FUNDS THAT MAY HAVE PURCHASED THE SECURITIES MAY BE A IN JAM MR NAGY SAID AFTER A REDEMPTION NOTICE SUCH BONDS COULD BE CONSIDERED SHORTTERM SECURITIES BY MONEYMARKET FUNDS LOOKING TO BOOST THEIR RETURNS THE GE NOTES FOR EXAMPLE COULD BE TREATED AS 60DAY SECURITIES BUT WITH THE REDEMPTION NOTICE RESCINDED THESE FUNDS MAY FEEL COMPELLED TO SELL THEM IMMEDIATELY SINCE THEY WOULD BE TREATED AS LONGTERM DEBT AGAIN SOMETHING MONEYMARKET FUNDS AREN'T PERMITTED TO HOLD THE RESULT IS A BIG HIT TO PRINCIPAL SINCE THE REDEMPTION WAS RESCINDED THE PRICE OF THE BONDS HAS DROPPED TWO POINTS TO 98 ACCORDING TO MR NAGY AND OTHER INVESTORS OR 20 FOR A BOND WITH 1000 FACE VALUE NEW ISSUERS POURED INTO THE CORPORATEBOND MARKET YESTERDAY AFTER WEEKS OF SITTING ON THE SIDELINES BUT THE RUG WAS QUICKLY PULLED OUT FROM UNDER SOME DEALS NEARLY 12 BILLION OF CORPORATE ISSUANCE WAS SOLD DURING THE SESSION EXCLUDING 650 MILLION OF DEBT SOLD BY FEDERAL AGENCIES BONDS SOLD BY PUBLIC SERVICE ELECTRIC & GAS CO A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP AND WESTERN MASSACHUSETTS ELECTRIC CO UNIT OF NORTHEAST UTILITIES REPORTEDLY HAD TROUBLE FINDING BUYERS BOTH WERE SOLD THROUGH COMPETITIVE BIDS COMPETITIVE DEALS ALWAYS TEND TO COME RICHER THAN PEOPLE EXPECT ONE TRADER NOTED WITH THE NARROWER YIELD GAPS OVER COMPARABLE TREASURYS THAN INVESTORS WERE WILLING TO ACCEPT THE PROBLEM WAS AS SOON AS BONDS WERE PRICED THE MARKET STARTED GOING DOWN BUT NOT EVERY DEAL BROUGHT TO MARKET FOUND RESISTANCE FROM INVESTORS BUYERS REPORTEDLY SNAPPED UP ALL OF KFW INTERNATIONAL FINANCE'S 250 MILLION ISSUE AN OFFICIAL AT LEAD UNDERWRITER MERRILL LYNCH & CO SAID THE FINANCING COMPANY'S 72 COUPON GUARANTEED NOTES MATURING IN 2014 WERE PRICED AT 99525 TO YIELD 7245 KFW INTERNATIONAL FINANCE IS A UNIT OF THE GERMAN PUBLICSECTOR INVESTMENT FINANCING AGENCY KREDITANSTALT FUER WIEDERAUFBAU BUT BOTH OF PSE&G'S ISSUES WERE PRICED TOO AGGRESSIVELY TO ATTRACT INVESTORS ONE SYNDICATE OFFICIAL SAID PSE&G CAME TO MARKET EARLY IN THE SESSION SELLING 350 MILLION OF FIRST MORTGAGE BONDS IN TWO PARTS THROUGH A COMPETITIVE BID ONE TRANCHE 175 MILLION ISSUE OF 6 3/4 FIRST MORTGAGE BONDS MATURING IN 2006 WAS PRICED AT 98771 TO YIELD 6902 THROUGH A COMPETITIVE BID WON BY CS FIRST BOSTON INC PSE&G ALSO SOLD 175 MILLION OF 7 3/8 COUPON FIRST MORTGAGE BONDS MATURING IN 2014 PRICED AT 99 TO YIELD 7472 THROUGH A COMPETITIVE BID WON BY KIDDER PEABODY & CO INVESTORS ARE VERY DEFENSIVE RIGHT NOW SAID ANOTHER SYNDICATE OFFICIAL MIKE TURNER AT PRUDENTIAL SECURITIES INC PRUDENTIAL WAS PART OF THE UNDERWRITING SYNDICATE BUT A PSE&G OFFICIAL DEFENDED THE OFFERING SAYING THAT MARKET CONDITIONS WERE GOOD WHEN THE DEBT WAS PRICED EARLY IN THE SESSION OFFICIALS AT LEAD MANAGERS KIDDER PEABODY AND CS FIRST BOSTON COULDN'T BE REACHED FOR COMMENT THE BONDS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP MEANWHILE NORTHWEST AIRLINES HAS BEGUN ITS ANTICIPATED FINANCING BINGE WITH THE PRICING OF A 175 MILLION ASSETBACKED TRANSACTION IN THE PRIVATEPLACEMENT MARKET THE UNUSUAL ISSUE MANAGED BY PRUDENTIAL SECURITIES INC IS ONE OF SEVERAL PIECES TO NORTHWEST'S AMBITIOUS PLAN TO REDUCE ITS 45 BILLION DEBT BURDEN THE ASSETBACKED TRANSACTION PROVIDES A WAY FOR NORTHWEST TO RAISE FUNDS AT A MORE ATTRACTIVE RATE THAN WOULD BE AVAILABLE THROUGH A BANK FINANCING OR A DEBT OFFERING IN THE CAPITAL MARKETS S&P FOR INSTANCE RATES NORTHWEST'S SENIOR DEBT SINGLEBMINUS WHICH WOULD MAKE A TRADITIONAL DEBT OFFERING COSTLY A SPOKESMAN FOR NORTHWEST AIRLINES DECLINED COMMENT ON ALL ASPECTS OF THE ASSETBACKED TRANSACTION FITCH INVESTORS SERVICE INC WOULDN'T COMMENT ON ITS ANALYSIS OF THE DEAL BECAUSE OF THE TRANSACTION'S PRIVATE NATURE SO IT'S UNCLEAR WHY THE DEAL DIDN'T RECEIVE THE STANDARD TRIPLEA DESIGNATION GRANTED TO MOST ASSETBACKED ISSUES AN OFFICIAL AT PRUDENTIAL SAID THE DEAL WAS WELLRECEIVED THE COMPANY ALSO IS RAISING CAPITAL THROUGH A STRUCTURED AIRCRAFT FINANCE ISSUE SAID TO ALSO BE ABOUT 200 MILLION AND LED BY LEHMAN BROTHERS INC ALSO IN THE WORKS IS A 400 MILLION INITIAL PUBLIC OFFERING WHICH IS CURRENTLY BEING MARKETED INTERNATIONALLY AND A 400 MILLION SALE OF SENIOR UNSECURED NOTES DUE 2004 FOR NORTHWEST'S OPERATING UNIT THESE TWO DEALS ARE SAID TO TOTAL 1 BILLION S&P RATED THE SENIOR DEBT OFFERING FROM YESTERDAY'S SESSION AT SINGLEBMINUS IN LATE TRADING NARROWLY MIXED MUNICIPALBOND PRICES WERE GENERALLY 1/8 POINT LOWER TO 1/8 HIGHER TRADERS SAID MUNIS STRENGTHENED WITH TREASURYS IN EARLY TRADING BUT WHEN TREASURYS LATER FELL THERE WASN'T ALL THAT MUCH SELLING OF TAXEXEMPT BONDS SOME MUNI SPECIALISTS SAID THERE WAS SOME BARGAIN HUNTING GOING ON WE'RE TELLING PEOPLE TO GET STARTED WITH THEIR PURCHASES AFTER THE RECENT PLUNGE SAID GEORGE FRIEDLANDER A PORTFOLIO STRATEGIST AT SMITH BARNEY SHEARSON INC JUDGING FROM THE WARM RECEPTION FOR A NUMBER OF NEW ISSUES INVESTORS WERE INDEED SHOPPING FOR MUNIS AGAIN ONE OFFERING ATTRACTING PLENTY OF BUYERS WAS THE NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY'S 243 MILLION FISCAL 1994 SERIES F WATER AND SEWER SYSTEM REVENUE BONDS THE PAINEWEBBER INC GROUP THAT BROUGHT THE TWOPART ISSUE TO THE MARKET REPRICED THE BONDS LOWERING SOME YIELDS DUE TO STRONG DEMAND A HIGHLIGHT IN TODAY'S SESSION IS EXPECTED TO BE THE COMPETITIVE PRICING OF CALIFORNIA'S 700 MILLION VARIOUSPURPOSE GENERALOBLIGATION BONDS LOSSES YESTERDAY IN MORTGAGE SECURITIES ERASED MONDAY'S MILD GAINS LATE IN THE SESSION 7 SECURITIES FOR MARCH DELIVERY WERE DOWN 9/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES WERE AT 98 22/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES WERE AT 99 2/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE AT 98 27/32 PRICES WERE HIGHER EARLY BUT THAT MOVE WAS LARGELY IN SYMPATHY WITH TREASURYS THERE WASN'T MUCH CHANCE THE MARKET WOULD DO BETTER FOR A SECOND DAY IN A ROW TRADERS SAID SINCE THERE WERE ALMOST NO BUYERS IN THE MARKET SAVE FOR THE OCCASIONAL BID FROM UNDERWRITERS LOOKING TO GATHER COLLATERAL FOR REALESTATE INVESTMENT CONDUITS THE THINLY TRADED MARKET WAS DOMINATED BY PROFESSIONAL PLAYERS WHO WHEN NOT COLLECTING COLLATERAL SEEMED TO BE BUYING BY PRICE CONSIDERATIONS ALONE A TRADER SAID THE HANDFUL OF INSTITUTIONAL INVESTORS WHO MADE A SHOW MONDAY FOR THE FIRST TIME IN DAYS WERE NOWHERE TO BE SEEN YESTERDAY HE ADDED AS FOR REMICS TWO DEALS WERE ANNOUNCED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WHILE THE OTHER WAS A FEDERAL HOME LOAN MORTGAGE CORP OFFERING COLLATERAL INCLUDED 7 AND 8 MORTGAGE SECURITIES AS WELL AS INTERESTONLY AND PRINCIPALONLY STRIPPED SECURITIES THE DEALS TOTALED 11 BILLION LAUREN YOUNG CONTRIBUTED TO THIS ARTICLE