NEW YORK INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL CONSOLIDATE THE DESIGN AND DEVELOPMENT TEAMS OF TWO OF ITS PERSONAL COMPUTER LINES TO CUT COSTS AND BRING PRODUCTS TO MARKET FASTER SEPARATELY IBM PLANS TO INTRODUCE TOMORROW THE FIRST PORTABLE COMPUTER THAT USES ITS POWERPC CHIP THE ARMONK NY COMPUTER MAKER SAID THE DECISION TO MERGE DEVELOPMENT OF ITS VALUEPOINT AND PS/2 DESKTOP PC BRANDS SHOULD ALLOW THE IBM PERSONAL COMPUTER CO UNIT TO USE MORE COMMON PARTS AND DESIGNS THE VALUEPOINT LINE INTRODUCED 18 MONTHS AGO HAS BEEN A BIG HIT LEADING SOME IBMWATCHERS TO CONCLUDE THAT IT WOULD ERODE THE MARKET FOR PS/2S IBM'S PREMIUM PC BRAND MEANWHILE SOME CUSTOMERS HAVE FAULTED IBM FOR FAILING TO UPGRADE THE PS/2 LINE AS QUICKLY AS THEY'D LIKE BUT JOSE E GARCIA THE GENERAL MANAGER FOR THE COMBINED DEVELOPMENT TEAM SAID PS/2 SALES REMAIN STRONG AND THAT IBM CONTINUES TO FULLY BACK THE BRAND WE HAVE MANY LOYAL PS/2 CUSTOMERS MR GARCIA SAID HE SAYS IBM HAS NOT DETERMINED WHETHER THE CONSOLIDATED DEVELOPMENT TEAM CALLED COMMERCIAL DESKTOP SYSTEMS WOULD REQUIRE FEWER WORKERS AT THE BOCA RATON FLA FACILITY BUT THAT ANY AFFECTED EMPLOYEES WOULD BE OFFERED WORK ELSEWHERE IN IBM IN JANUARY IBM CONSOLIDATED THE US SALES AND MARKETING OF THE VALUEPOINT AND PS/2 LINES TODAY IT WILL CONSOLIDATE THE MARKETING IN EUROPE MR GARCIA SAID THE NEW PORTABLE COMPUTER THE RISC SYSTEM/6000 N40 IS BASED ON THE POWERPC CHIP FOUND IN SOME IBM WORKSTATIONS THE FAST DESKTOP COMPUTERS USED BY SCIENTISTS AND ENGINEERS IT ALSO IS THE CHIP DESIGN THAT IBM MOTOROLA INC AND APPLE COMPUTER INC HOPE TO ESTABLISH AS A NEW PC STANDARD BUT THE 11999 NOTEBOOK IS AIMED AT ENGINEERS SOFTWARE DEVELOPERS AND OTHERS WHO WANT TO RUN WORKSTATION SOFTWARE SUCH AS COMPUTERAIDED DESIGN PROGRAMS WHILE ON THE ROAD THE 69POUND COMPUTER WHICH FEATURES AN ACTIVEMATRIX COLOR SCREEN AND IBM'S TRACKPOINT CURSOR CONTROL DEVICE WON'T RUN STANDARD PC SOFTWARE BUT SELLING A WORKSTATIONBASED NOTEBOOK MAY BE TOUGH FEW SCIENTISTS AND ENGINEERS HAVE A NEED TO DO 3D MODELING WHILE TRAVELING SAYS WIM ROELANDTS GENERAL MANAGER OF HEWLETTPACKARD CO'S COMPUTER SYSTEMS GROUP HP HE SAYS LOOKED AT MAKING A WORKSTATIONCLASS NOTEBOOK BUT FOUND LITTLE DEMAND PERHAPS IN RECOGNITION OF THIS IBM CODEVELOPED ITS NOTEBOOK WITH TADPOLE PLC OF BRITAIN WHICH IS ALSO ASSEMBLING IT TADPOLE MAKES A NOTEBOOK BASED ON SUN MICROSYSTEMS INC'S WORKSTATION CHIP 9403070112 940307 SMALL STOCK FOCUS PRICE CORRECTION MAY SPAWN TAKEOVERS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE DUST CLEARS FROM THE CURRENT CORRECTION IN STOCK PRICES KEEP A SHARP EYE OUT FOR TEMPTING TAKEOVER TARGETS JUST KEEP IN MIND THAT WITH SOME 4600 PUBLICLY TRADED SMALL STOCKS IT WON'T BE EASY TO PICK THOSE TARGETS MONEY MANAGERS SAY SLUMPING STOCK PRICES MAY INCREASE THE ALLURE OF SMALL COMPANIES AS TAKEOVER CANDIDATES PARTICULARLY AMONG WELLMANAGED CONCERNS IN THE TECHNOLOGY HEALTHCARE FINANCIALSERVICES AND MEDIA SECTORS CONSOLIDATION IS GOING TO BE A BIG DEAL THIS YEAR PREDICTS CHARLES GLOVSKY PORTFOLIO MANAGER OF STATE STREET RESEARCH'S SMALL CAP GROWTH FUND IN BOSTON IN THE PAST MONTH FOUR OF THE COMPANIES IN OUR PORTFOLIO OF 71 STOCKS WERE BOUGHT WHOLLY OR PARTIALLY THAT'S MORE TAKEOVER ACTIVITY WE'VE SEEN ON A MONTHLY BASIS THAN AT ANY TIME IN THE PAST FIVE YEARS THOSE TARGETED STOCKS IN STATE STREET'S 500 MILLIONASSET PORTFOLIO INCLUDED FLORIDABASED HEALTH MAINTENANCE ORGANIZATION RAMSEYHMO INC ACQUIRED BY UNITED HEALTHCARE CORP EDUCATIONSOFTWARE DEVELOPER BRODERBUND SOFTWARE INC TO BE BOUGHT BY VIDEOGAME SOFTWARE PUBLISHER ELECTRONIC ARTS COMPUTERANIMATION SOFTWARE GROUP SOFTIMAGE INC ACQUIRED BY MICROSOFT CORP AND WIRELESS SPECIALIZED MOBILE RADIO COMPANY NEXTEL COMMUNICATIONS INC IN WHICH MCI COMMUNICATIONS CORP TOOK A 17 STAKE FOR 13 BILLION BUT NO ONE SHOULD EVER INVEST IN A COMPANY SOLELY BECAUSE OF ITS MOOTED TAKEOVER POTENTIAL COUNSELS MR GLOVSKY THE WAY TO PLAY A TAKEOVER STRATEGY IS TO BUY FASTGROWING QUALITY COMPANIES THAT HAVE BEEN TRADING AT ATTRACTIVE VALUATIONS IF IN THE CURRENT CORRECTION THOSE VALUATIONS CONTRACT EVEN FURTHER THOSE ISSUES BECOME INCREASINGLY ATTRACTIVE TARGETS FOR A BID HE EXPLAINS A HOST OF FACTORS IS DRIVING THE TAKEOVER FLURRY IN SMALL STOCKS THIS YEAR HE BELIEVES FOR ONE THING A LACK OF PRICING POWER IS FORCING MANY MIDCAPITALIZATION COMPANIES TO SEEK GROWTH THROUGH ACQUISITIONS OF COMPETITIVE SECONDARY AND TERTIARY PLAYERS HE ASSERTS WE TALK TO OVER 1000 COMPANIES EVERY YEAR AND WHAT WE'RE HEARING FROM THE VAST MAJORITY OF THESE FIRMS IS THAT THEIR CUSTOMERS WON'T STAND FOR PRICE INCREASES CONSEQUENTLY GROWTH IS GOING TO HAVE TO COME FROM OTHER AREAS INCLUDING ACQUISITIONS WHAT'S MORE HE NOTES A NUMBER OF RAPIDLY GROWING SMALL COMPANIES ARE RUNNING INTO CAPACITY PROBLEMS THAT COULD HAMSTRING FURTHER GROWTH AND IMPEDE COSTREDUCTION EFFORTS AS A RESULT A LOT OF TERTIARY COMPETITORS WILL BE LOOKING TO SELL OUT TO LARGER COMPANIES TO ACHIEVE ECONOMIESOFSCALE HE SAYS THE STATE STREET FUND MANAGER THINKS A COUPLE OF OTHER STOCKS IN HIS PORTFOLIO HAVE AMPLE TAKEOVER POTENTIAL REXALL SUNDOWN INC A CLOSELY HELD PURVEYOR OF VITAMINS AND NUTRITIONAL SUPPLEMENTS REPRESENTS AN ATTRACTIVE ACQUISITION FOR COMPANIES HOPING TO EXPAND INTO OVERTHECOUNTER PHARMACEUTICALS MR GLOVSKY SAYS NOTING THAT THE STOCK TRADING AT AROUND 21 A SHARE HAS NEARLY DOUBLED FROM AROUND 11 IN MIDDECEMBER MR GLOVSKY ALSO EXPECTS TO SEE FURTHER CONSOLIDATION MOVES IN THE HIGHLY SPECULATIVE WIRELESS SEGMENT OF THE TELECOMMUNICATIONS ARENA PARTICULARLY FOLLOWING MCI'S INFUSION OF CAPITAL INTO NEXTEL A LIKELY TAKEOVER TARGET HE SAYS IS PITTENCRIEFF COMMUNICATIONS INC A SMALLER SPECIALIZEDMOBILERADIO COMPANY OPERATING IN TEXAS AND OTHER PARTS OF THE SOUTHWEST THE COMPANY MIGHT SOON BE WOOED BY THE LIKES OF THE NEWLY BEEFEDUP NEXTEL OR OTHER LARGER WIRELESS PLAYERS HE SAYS OTHER MONEY MANAGERS PREDICT THE TAKEOVER DRUMBEAT WILL INTENSIFY IN THE BEATENUP HEALTHCARE SECTOR WHERE COSTCUTTING IS THE NAME OF THE GAME AS COMPANIES GEAR UP FOR PENDING HEALTHCARE REFORM LEGISLATION ON FRIDAY FOR EXAMPLE HEALTHDYNE INC SAID ITS 68OWNED HOMEINFUSION SUBSIDIARY HOME NUTRITIONAL SERVICES ENTERED INTO A DEFINITIVE MERGER AGREEMENT WITH WR GRACE & CO HEALTHDYNE SAID WR GRACE WILL SEEK ALL OF THE HOME NUTRITIONAL SHARES OUTSTANDING FOR 785 EACH IN CASH THE MOVE IS THE LATEST IN A RECENT WAVE OF MERGERS IN THE HOMEINFUSION NICHE MARKET EARLY LAST MONTH T2 MEDICAL CURA FLEX HEALTH SERVICES INC MEDISYS INC AND HEALTHINFUSION INC ANNOUNCED AN AGREEMENT TO MERGE AS CORAM HEALTHCARE CORP WITH SOME 200 HOME INFUSION CENTERS NATIONWIDE IN JANUARY CAREMARK INTERNATIONAL INC SAID IT WOULD PURCHASE CRITICAL CARE AMERICA MEDICAL CARE AMERICA'S HOMEINFUSION SUBSIDIARY FOR 175 MILLION JOEL TILLINGHAST MANAGER OF FIDELITY INVESTMENT'S LOWPRICED STOCK FUND A 22 BILLIONASSET PORTFOLIO THINKS NATIONAL HEALTH LABORATORIES INC AND UNIVERSAL HEALTH SERVICES INC COULD BOTH ATTRACT TAKEOVER INTEREST IN TWO OF THE LARGER HEALTHCARE SECTORS LABORATORY SERVICES AND HOSPITALS NATIONAL HEALTH HE SAYS WILL SEE ITS EARNINGS DECLINE THIS YEAR BUT THE CLINICALLAB SERVICE COMPANY REMAINS A STRONGLY CASHGENERATIVE BUSINESS OFFERING HUGE ECONOMIES OF SCALE TO A POTENTIAL ACQUIRER UNIVERSAL HEALTH AN ACUTECARE HOSPITAL OPERATOR IS CURRENTLY TRADING AT A RELATIVELY LOW MULTIPLE OF EARNINGS FOR THE HOSPITAL INDUSTRY WHICH HAS BEEN A FERTILE AREA FOR TAKEOVERS HE SAYS CITING RECENT ACQUISITIONS BY BURGEONING HOSPITAL COLUMBIA/HCA HEALTHCARE CORP FORMERLY COLUMBIA HOSPITAL CORP THE FIDELITY MANAGER ALSO SEES LOTS OF TAKEOVER POTENTIAL IN THE FINANCIAL SECTOR WHERE VALUATIONS REMAIN PRETTY MODERATE AMONG THOSE BANK ISSUES THAT COULD ATTRACT INTEREST HE CITES INDEPENDENT BANK CORP OF ROCKLAND MASS ANDOVER BANCORP OF ANDOVER MASS ST PAUL BANCORP OF CHICAGO AND DIME SAVINGS BANK OF NEW YORK AT T ROWE PRICE IN BALTIMORE A FOCUS ON POTENTIAL TAKEOVER CANDIDATES IS DIRECTED LARGELY AT THE MEDIA AND TELECOMM SECTORS WE WOULD NOT HUNT DOWN INVESTMENTS SIMPLY ON TAKEOVER SPECULATION SAYS CHARLES CHIP MORRIS EXECUTIVE VICE PRESIDENT OF T ROWE'S NEW AGE MEDIA FUND THAT DOESN'T MEAN IF WE LIKE A STOCK AND IF ITS FUNDAMENTALS ARE GOOD THAT WE WOULDN'T ALSO CONSIDER ITS VALUE AS A TAKEOVER CANDIDATE SPECIFICALLY MR MORRIS LIKES COMPANIES THAT HAVE BEEN BUILDING FRANCHISES IN FRAGMENTED MARKETS THAT ARE INCREASINGLY DOMINATED BY A FEW BIG ORGANIZATIONS HE ALSO FAVORS COMPANIES WITH SOLID CASH FLOW AND STRONG BRANDNAME RECOGNITION ONE OF HIS TOP PICKS AS A POTENTIAL TAKEOVER PLAY IS ENQUIRER/STAR GROUP PUBLISHER OF THE RACY NATIONAL ENQUIRER TABLOID HE THINKS THE COMPANY'S INTRODUCTION OF A COUNTRY LIFESTYLE MAGAZINE THIS SPRING COULD SPARK INTEREST POSSIBLY FROM MEDIA ENTREPRENEUR RUPERT MURDOCH ONE TROUBLING ASPECT OF THE RECENT FLURRY OF TAKEOVER BIDS HAS BEEN THE SHARP RISE IN THE STOCK PRICE OF RECENT ACQUISITION TARGETS BEFORE THE MERGERS ARE ANNOUNCED FOR EXAMPLE NEXTEL'S SHARES JUMPED 2125 A SHARE OR NEARLY 6 ON THE DAY BEFORE THE ANNOUNCEMENT OF MCI'S ACQUISITION OF ITS LARGE STAKE IN THE WIRELESS COMPANY AND HOME NUTRITIONAL'S SHARES SURGED 875 CENTS OR 15 ON HEAVY VOLUME THURSDAY AMID SPECULATION THE COMPANY COULD BE ACQUIRED CHIP MAKERS DREW BUYERS AND BONDS STABILIZED PUSHING SMALLCOMPANY STOCKS SOLIDLY HIGHER THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS GAINED 156 OR 059 TO END AT 26471 THE NASDAQ COMPOSITE INDEX ZOOMED 597 OR 076 TO 79055 BOTH INDEXES POSTED ONLY MODEST GAINS FRIDAY MORNING BUT JUMPED HIGHER AS BONDS REBOUNDED ADVANCING NASDAQ ISSUES TOPPED DECLINERS 1732 TO 1312 ON NASDAQ NATIONAL MARKET VOLUME OF 276958200 SHARES AND TOTAL VOLUME OF 318175000 ON THURSDAY NATIONAL MARKET VOLUME WAS AT 279207000 SHARES WITH OVERALL VOLUME AT 318358000 AMONG THE GAINERS WERE VLSI TECHNOLOGY SAN JOSE CALIF WHICH GAINED 1 3/4 TO 14 1/2 ADVANCED SEMICONDUCTOR MATERIALS INTERNATIONAL THE NETHERLANDS WHICH ADDED 1/8 TO 3 1/8 AND CYRIX RICHARDSON TEXAS WHICH MOVED 7/8 HIGHER TO 32 AMONG THE DECLINERS WERE SHARES OF BEN & JERRY'S HOMEMADE WHICH FELL 1 7/8 TO 18 1/8 FOLLOWING A COMPANY FORECAST THAT MARKETING AND STARTUP COSTS ASSOCIATED WITH ITS NEW SMOOTH ICECREAM LINE WOULD PRESSURE THE COMPANY'S 1994 EARNINGS EARNINGS WOULDN'T KEEP PACE WITH SALES GROWTH IN 1994 THE COMPANY SAID IT WASN'T MORE SPECIFIC THE COMPANY IN WATERBURY VT REPORTED NET INCOME OF 72 MILLION OR 101 A SHARE ON SALES OF 1403 MILLION FOR THE FISCAL YEAR ENDED DEC 25 1993 9403070111 940307 REVIEW & OUTLOOK EDITORIAL COB'S IN THE CLINTON ERA IT'S BEEN FASHIONABLE TO BE AN FOB OR FRIEND OF BILL WITH THE FORCED RESIGNATION OF WHITE HOUSE COUNSEL BERNIE NUSSBAUM WE WOULD LIKE TO SUGGEST A NEW CATEGORY COB OR CASUALTY OF BILL THERE SEEM TO BE MORE COBS ALL THE TIME THIS NEW DESIGNATION SEEMS ESPECIALLY APT BECAUSE SOME IN WASHINGTON ARE PORTRAYING MR NUSSBAUM AS A UNIQUE CASE A LAWYER WITH A POLITICAL TIN EAR THE MAIN SOURCE OF WHITE HOUSE MISSTEPS BUT WHAT STRIKES US IS HOW MR NUSSBAUM IS JUST THE LATEST IN A REMARKABLE STRING OF DEPARTURES THAT SUGGEST THERE'S MORE GOING ON HERE THAN THE JUDGMENT OF A SINGLE WHITE HOUSE LAWYER MAYBE THE PROBLEM GOES HIGHER UP THE CHAIN OF COMMAND BY NOW THE COB LIST INCLUDES PHIL HEYMANN THE FORMER DEPUTY ATTORNEY GENERAL WHO WAS WELL REGARDED BY JUST ABOUT EVERYONE BUT CLINTON OFFICIALS CLIFFORD WHARTON WAS SHOVED OUT THE DOOR AS DEPUTY SECRETARY OF STATE LAST YEAR JOINED LATER BY THEN SECRETARY OF DEFENSE ASPIN THIS FOLLOWED THE LANI GUINIER FIASCO AND OF COURSE THE DIVERSITY SEARCH FOR AN ATTORNEY GENERAL WITHOUT A YCHROMOSOME TWO ACCOMPLISHED WOMEN ZOE BAIRD AND KIMBA WOOD FOUND THEMSELVES IN TATTERS BEFORE THAT SEARCH WAS OVER SENIOR WHITE HOUSE AIDES HOWARD PASTER AND ROY NEEL LEFT VOLUNTARILY AFTER ONLY ONE YEAR CLAIMING TO BE BURNT OUT THE BRIEFEST BRUSH WITH THE CLINTON ADMINISTRATION LEFT ADMIRAL BOBBY INMAN A COB HIS PREVIOUSLY STERLING REPUTATION NOW WARPED ALL OF THIS IN LESS THAN 14 MONTHS WE WOULD EVEN ADD GEORGE MITCHELL'S SURPRISE RESIGNATION TO THIS CASUALTY LIST MAYBE THE SENATE MAJORITY LEADER DID WANT TO CLEAR THE DECKS FOR ANY SUPREME COURT OPENING BUT IT'S HARD TO BELIEVE HE WOULD LEAVE SO POWERFUL A POST IF THE CLINTON PRESIDENCY WERE A GREAT SUCCESS IF HE FELT ANY SPECIAL LOYALTY TO THIS PRESIDENCY WHY WOULD THE VERY LIBERAL MR MITCHELL MAKE HIMSELF A LAME DUCK IN ITS CRUCIAL SECOND YEAR WITH GOVERNMENT HEALTH CARE ON THE LINE MR NUSSBAUM IS OF COURSE THE FIRST MEMBER OF THE CLINTON INNER CIRCLE TO BE PUSHED OVER THE SIDE IN AN IRONY FOR THE AGES HE FIRST MET HILLARY RODHAM CLINTON WHEN HE HIRED HER TO JOIN THE STAFF OF THE HOUSE COMMITTEE INVESTIGATING WATERGATE MRS CLINTON WAS WIDELY VIEWED AS MR NUSSBAUM'S SHIELD AFTER THE TRAVELGATE BLUNDERS LAST YEAR AND WE CAN ONLY ASSUME THAT MR NUSSBAUM HASN'T DONE ANYTHING THAT THE FIRST LADY AND/OR THE PRESIDENT DIDN'T WANT HIM TO DO IN FACT MR NUSSBAUM'S TART RESIGNATION LETTER DESCRIBED A VIEW OF THE WHITE HOUSE COUNSEL'S JOB AS GEARED PRINCIPALLY TO REPRESENTING THE FIRST COUPLE HE SAID HE WAS LEAVING AS A RESULT OF CONTROVERSY GENERATED BY THOSE WHO DO NOT UNDERSTAND NOR WISH TO UNDERSTAND THE ROLE AND OBLIGATIONS OF A LAWYER BUT THE CLINTONS ALREADY HAVE A PERSONAL LAWYER DAVID KENDALL OF WILLIAMS & CONNOLLY A WHITE HOUSE COUNSEL HAS TO MAKE HARD CALLS BUT HE IS STILL PAID BY THE TAXPAYERS WHICH MEANS HE HAS A BROADER DUTY TO THE PUBLIC TRUST JUST ASK JOHN DEAN THE SAME GOES FOR THE OTHER FOBS WHO MET WITH MR NUSSBAUM TO DISCUSS THE INDEPENDENT WHITEWATER INVESTIGATIONS IF MR NUSSBAUM'S MISTAKES WARRANT DISMISSAL WHAT ABOUT ROGER ALTMAN THE TREASURY REGULATOR WHO PROVIDED WHAT HE HIMSELF CALLED A HEADS UP TO MR NUSSBAUM JEAN HANSON THE TREASURY GENERAL COUNSEL WENT SO FAR AS TO BETRAY THE FACT THAT THE RESOLUTION TRUST CORP HAD MADE A CRIMINAL REFERRAL TO JUSTICE THE ETHICAL BLIND SPOTS GO BEYOND MR NUSSBAUM THIS SUGGESTS THE PROBLEM WON'T BE SOLVED BY APPOINTING GERGEN II WE WOULDN'T BE AT ALL SURPRISED TO SEE DAVID GERGEN ANNOUNCE HIS OWN RESIGNATION SOON DECLARING THAT HE'D DONE HIS PATRIOTIC DUTY BY SAVING NAFTA WHICH WOULD BE RIGHT THE NAMES OF THOSE SUBPOENAED BY A GRAND JURY INCLUDE FOB BRUCE LINDSEY DEPUTY CHIEF OF STAFF AND FOB HAROLD ICKES AND THE FIRST LADY'S CHIEF OF STAFF MARGARET WILLIAMS IT'S HARD TO BELIEVE THAT SOME WHITESHOE BELTWAY LAWYER/POTENTATE WOULD BE ABLE TO REIN IN THIS CROWD THAT SAID WE DON'T MUCH LIKE THE GRAND JURY SPECTACLE THE MISTAKES SO FAR ARKANSAS GOINGSON EXCEPTED DON'T SEEM TO DESERVE CRIMINAL INVESTIGATION THE CLINTON TEAM IS SUFFERING ALAS FROM THE NEW STANDARD OF CRIMINALIZING POLITICS THAT CONGRESSIONAL DEMOCRATS ESTABLISHED TO PUNISH REAGANITES IN THE 1980S WE'D PREFER TO SEE MR ALTMAN AND THE REST TESTIFY BEFORE CONGRESS WHERE THE PUBLIC CAN FIND OUT WHAT HAPPENED BUT WHEN THE STONEWALL FELL DEMOCRATS SO DREADED A PUBLIC ACCOUNTING THAT THEY HID BEHIND A SPECIAL COUNSEL WHO IS NOW ISSUING THE SUBPOENAS THE LARGER PROBLEM IN ANY EVENT ISN'T THE ETHICS OF MR NUSSBAUM BUT THE ETHICAL TONE SET FROM THE TOP THE PRESIDENT AND FIRST LADY CAME OF AGE IN AN ARKANSAS POLITICAL CULTURE IN WHICH CONFLICT OF INTEREST WAS A WAY OF LIFE THEY'VE BROUGHT THAT SAME STANDARD WITH THEM TO WASHINGTON AND IT WILL CONTINUE TO PRODUCE CASUALTIES UNTIL THEY ABANDON IT PERHAPS A RAZORBACK UNLIKE A LEOPARD CAN CHANGE ITS SPOTS 9403070110 940307 ABREAST OF THE MARKET STOCK BOND MARKETS GO SEPARATE WAYS AS INVESTORS SEEK PROFITDRIVEN SHARES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BY ALL APPEARANCES THE STOCK MARKET IS IN THE GRIP OF RISING INTEREST RATES WITH EVERY SPIKE UP IN RATES STOCKS TAKE IT ON THE CHIN LAST WEEK'S SHARP STOCK MARKET VOLATILITY WAS ONLY THE LATEST EVIDENCE OF INTERESTRATEDRIVEN STOCK TRADING MANY INVESTORS EVEN WORRY THAT THE CLIMB IN INTEREST RATES HERALDS THE DEATH OF THE BULL MARKET BUT A CLOSER LOOK SHOWS THAT IN FACT THE STOCK MARKET HAS BEEN WRIGGLING OUT OF ITS INTERESTRATE SHACKLES WHILE BOND PRICES HAVE SLUMPED 124 SINCE LONGTERM INTEREST RATES HIT THEIR LOW IN MIDOCTOBER THE DOW JONES INDUSTRIAL AVERAGE HAS CLIMBED 58 SURE MANY STOCKS ARE SUFFERING AND THE MARKET CURRENTLY IS SLOGGING THROUGH WHAT APPEARS TO BE A SMALLSCALE CORRECTION BUT BUYING AND SELLING PATTERNS OVER THE PAST SEVERAL MONTHS CLEARLY INDICATE THAT INVESTORS HAVE MADE GREAT STRIDES IN DELINKING THE STOCK MARKET FROM THE BOND MARKET YOU MAY NOT SEE IT DAY TO DAY BUT THERE'S NO QUESTION THE MARKETS HAVE DELINKED SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES IN ANY ONE DAY THEY MAY MOVE TOGETHER BUT THE RELATIVE RATE OF CHANGE IS QUITE CLEAR BONDS HAVE GONE DOWN BIG TIME AND STOCKS HAVE HELD OR RISEN TO COUNTER THE RISE IN INTEREST RATES INVESTORS HAVE DUMPED INTERESTRATE SENSITIVE STOCKS SUCH AS BANKS AND UTILITIES AND SNAPPED UP EARNINGSDRIVEN STOCKS SUCH AS HEAVY MACHINERY AND AUTO MAKERS THE ONLY INVESTMENTS THAT WILL DO WELL IN AN UNCERTAIN INTERESTRATE ENVIRONMENT ARE EARNINGSDRIVEN EQUITIES THAT CAN IGNORE RATES AND BENEFIT FROM THE IMPROVING ECONOMY MR CANELO SAYS THE STOCKANDBONDMARKET DECOUPLING MAY NOT BE EVIDENT TO MANY OBSERVERS BECAUSE THEIR ATTENTION OFTEN FOCUSES ONLY ON THE MAJOR STOCK MARKET INDEXES RATHER THAN ON INDIVIDUAL GROUPS OF STOCKS BUT A LOOK AT INDUSTRY GROUP PERFORMANCES SINCE MIDOCTOBER SHOWS THE SHIFT FROM INTERESTRATE SENSITIVE STOCKS TO ECONOMICALLY SENSITIVE SHARES IF YOU EXCLUDE FINANCIALS AND UTILITIES AND OTHER INTERESTRATE SENSITIVE STOCKS FROM THE AVERAGES THE INDEXES WOULD CLEARLY BE MUCH HIGHER THAN THEY ARE MR CANELO SAYS THAT'S BECAUSE NEAR THE BOTTOM OF THE PERFORMANCE LIST STAND SUCH GROUPS AS SECURITIES BROKERS WITH A 17 LOSS SINCE MIDOCTOBER ELECTRIC UTILITIES WITH A DECLINE OF 13 SAVINGS AND LOANS DOWN 11 AND CENTRAL REGION BANKS OFF 9 DURING THE SAME PERIOD ECONOMICALLY SENSITIVE HEAVYMACHINERY STOCKS HAVE CLIMBED 28 AUTO MANUFACTURERS HAVE GAINED 23 AND HEAVY CONSTRUCTION 18 MR CANELO THINKS THE DELINKING WILL HELP THE DOW INDUSTRIALS WEATHER THE CURRENT CORRECTION AND DRIVE THE AVERAGE BACK THROUGH ITS HIGH AND BEYOND 4000 IT'S PRECISELY BECAUSE THE DOW CONTAINS MANY EARNINGSDRIVEN COMPANIES THAT HISTORICALLY TEND TO DO WELL AS RATES BEGIN TO RISE HE SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA CONTENDS THAT THE DECOUPLING HAS PROGRESSED SO FAR THAT THE RECENT TURMOIL IN THE STOCK MARKET ISN'T REALLY RELATED TO THE RISE IN RATES EVEN THOUGH IT APPEARS THE BOND MARKET HAS BEEN UNSETTLING STOCKS THAT'S NOT REALLY THE REASON BEHIND IT MR HAYS SAYS HE ARGUES THAT THE STOCK MARKET IS SIMPLY UNDERGOING A NECESSARY PAUSE AFTER ITS JANUARY RALLY SENT THE DOW INDUSTRIALS VERY NEAR THE 4000 LEVEL YOU NEED A LITTLE SHAKING OUT OF THE TREE BECAUSE PEOPLE GOT A LITTLE TOO ENTHUSIASTIC MR HAYS SAYS NOW THAT SO MUCH WORRY HAS STORMED INTO THE MARKET THE DOW IS POISED FOR ITS NEXT MOVE UPWARD MR HAYS PREDICTS HE SAYS SEVERAL INDICATORS INCLUDING A SHARP DROP IN SPECULATION ARE POINTING TO A RENEWED RALLY THAT WILL PUSH THE DOW TO 4200 BY SEPTEMBER WE HAVE REFILLED THE KETTLE OF FEAR MR HAYS SAY WE NEED THAT BECAUSE THE BULL MARKET HAS TO CLIMB A WALL OF WORRY OF COURSE STOCKS CAN NEVER BE ENTIRELY IMMUNE TO RISING INTEREST RATES IF RATES CLIMB SIGNIFICANTLY INVESTORS MAY INCREASINGLY FAVOR SECURE HIGHER YIELDING FIXEDINCOME INVESTMENTS OVER STOCKS REDUCING THE MONEY FLOWS INTO THE STOCK MARKET WORSE SHARPLY RISING RATES COULD INTERRUPT THE ECONOMIC RECOVERY AND IMPAIR EARNINGS GROWTH WITH THE TURMOIL IN THE MARKETS SINCE THE FEDERAL RESERVE BOOSTED SHORTTERM RATES ON FEB 4 THE JURY IS STILL OUT ON THE FINAL LEVEL OF INTEREST RATES HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAYS THE RECENT SHARP RISE IN RATES CASTS SOME DOUBT ON THE ULTIMATE SUCCESS OF THE DELINKING WE'RE AT THAT POINT IN THE CYCLE WHERE THE STOCK MARKET CAN MANAGE A MODEST INCREASE IN RATES MR JOHNSON SAYS THE PROBLEM IS THAT WHAT WE'VE HAD SINCE FEB 4 HAS BEEN INTERESTRATE SHOCK IT NEARLY BROKE THE BACK OF THIS BULL MARKET BUT IT HASN'T QUITE DONE IT MR JOHNSON THINKS THAT THE SHARP RISE IN RATES INDICATES THE MARKETS HAVE SWIFTLY DISCOUNTED MOST OF THE FUTURE BAD NEWS ON INFLATION AND FED TIGHTENINGS HE NOTES THAT INVESTORS ARE BEHAVING AS THEY NORMALLY DO LATE IN A BULL MARKET BUYING CYCLICALS AND DUMPING INTERESTRATE SENSITIVE STOCKS STILL HE WORRIES THAT THE DUST MAY NOT YET HAVE SETTLED IN THE INTERESTRATE ARENA THE SHOCK OF THE LAST FOUR WEEKS HAS RAISED THE QUESTION HAVE RATES GONE UP ENOUGH TO DERAIL THE ECONOMY AND EARNINGS MR JOHNSON SAYS THE ANSWER SO FAR IS NO BUT IF WE GET ANOTHER SPIKE UP WE'D HAVE TO ASK THE QUESTION AGAIN EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE ARGUES THAT DELINKING IS IRRELEVANT STOCKS DON'T NEED TO DECOUPLE FROM BONDS BECAUSE THE RISE IN INTEREST RATES IS OVERDONE AND WILL LIKELY REVERSE HE CONTENDS MR YARDENI EXPECTS THE ECONOMY TO CONTINUE GROWING AND INFLATION TO REMAIN SUBDUED HE AGREES THAT STRONGER EARNINGS WILL HELP PROPEL STOCKS HIGHER IF THE ECONOMY CONTINUES TO PERFORM WELL WITH LOW INFLATION THAT'S BULLISH FOR STOCKS MR YARDENI SAYS HE STANDS PRETTY MUCH ALONE THESE DAY IN ARGUING THAT A NEW UPWARD TREND IN INTEREST RATES WASN'T NECESSARILY INAUGURATED WITH THE FED RISE FEB 4 I MAY BE OVERSTAYING MY WELCOME IN THIS CAMP BUT I DON'T THINK THERE'S BEEN A SEA CHANGE IN THE DIRECTION OF INTEREST RATES MR YARDENI SAYS INDEED HE BLAMES THE FED FOR RAISING UNREALISTIC FEARS OF INFLATION AND ROILING THE MARKETS HE CONTENDS THAT MORE THAN ANYTHING THE FED HAS CONFUSED INVESTORS BY LAYING OUT A WIDE RANGE OF INDICATORS IT DEEMS IMPORTANT IN ASSESSING INFLATION RISKS THE FED NOW FOCUSES ON EVERYTHING AND NOTHING MR YARDENI COMPLAINS WE DON'T KNOW WHAT CARRIES WEIGHT WITH THEM ANYMORE WHAT'S WORSE HE ARGUES ARE THE MIXED SIGNALS BEING SENT BY THE USUALLY TIGHTLIPPED FEDERAL RESERVE BOARD MEMBERS HE POINTS OUT THAT FED CHAIRMAN ALAN GREENSPAN SAID IN HIS CONGRESSIONAL TESTIMONY THAT GOLD IS A GOOD INDICATOR OF FUTURE INFLATION BUT SHORTLY AFTERWARD FED GOVERNOR LAWRENCE LINDSEY DISCOUNTED THE IMPORTANCE OF GOLD NOW WE HAVE THE OPENMOUTH COMMITTEE MR YARDENI SAYS AT SOME POINT THE MARKETS ARE GOING TO REALIZE WE SHOULDN'T PAY TOO MUCH ATTENTION TO THIS JIBBERISH AND FOCUS ON THE FUNDAMENTALS STOCK PRICES WERE PUSHED HIGHER BY A STRONG EMPLOYMENT REPORT THE DOW JONES INDUSTRIAL AVERAGE GAINED 788 POINTS TO 383230 STANDARD & POOR'S 500STOCK INDEX ROSE 173 TO 46474 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 102 TO 25770 THE NASDAQ COMPOSITE CLIMBED 597 TO 79055 THE DOW JONES EQUITY MARKET INDEX WAS UP 163 TO 44025 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EDGED UP 083 TO 46648 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 017 TO 11504 PRICES ROSE AMID A LABOR DEPARTMENT REPORT THAT NONFARM PAYROLLS JUMPED BY 217000 IN FEBRUARY EXCEEDING ANALYSTS' EXPECTATIONS THE UNEMPLOYMENT RATE SLIPPED TO 65 BELOW THE 67 LEVEL ANALYSTS HAD FORECAST THE NEWS HELPED THE DOW INDUSTRIALS CLIMB MORE THAN 20 POINTS BEFORE FADING SOMEWHAT ECONOMICALLY SENSITIVE STOCKS AS MEASURED BY MORGAN STANLEY'S CYCLICAL INDEX FAR OUTPACED THE OVERALL MARKET THE INDEX JUMPED 323 OR 104 TO 31240 CYCLICAL GAINERS INCLUDED GENERAL MOTORS WHICH ROSE 1 1/2 TO 62 ALLIEDSIGNAL WHICH CLIMBED 1 3/8 TO 77 3/8 AND UNITED TECHNOLOGIES WHICH GAINED 1 1/2 TO 67 5/8 TAKECARE SURGED 7 7/8 OR 117 TO 75 1/4 ON THE NASDAQ STOCK MARKET AFTER THE CONCORD CALIF HEALTH MAINTENANCE ORGANIZATION AGREED TO BE ACQUIRED BY FHP INTERNATIONAL FOR CASH AND STOCK SHARES OF FHP A FOUNTAIN VALLEY CALIF HMO OPERATOR DROPPED 1 3/4 TO 26 3/4 INTERNATIONAL GAME TECHNOLOGY A RENO NEV MAKER OF MICROPROCESSORBASED GAMING MACHINES ADVANCED 3 7/8 TO 32 1/4 ON NEWS OF A PLANNED EXPANSION THE COMPANY'S ISTNORTH AMERICA UNIT SAID IT WILL HIRE 500 NEW WORKERS AND EXPAND ITS MAIN MANUFACTURING PLANT TO A SEVENDAY WORK WEEK CIRCUIT CITY STORES INC IMPROVED 3 3/8 OR 18 TO 22 1/2 AFTER REPORTING SAMESTORE SALES FOR FEBRUARY ROSE 18 AND TOTAL SALES GREW 39 TO 3349 MILLION SCIENTIFICATLANTA CLIMBED 3 1/2 TO 31 1/8 ON VOLUME OF MORE THAN 13 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 315900 SHARES THE JUMP WAS SPURRED BY A DEAL CALLING FOR TIME WARNER TO BUY 500000 HOME COMMUNICATIONS TERMINALS OR SETTOP BOXES FROM SCIENTIFICATLANTA IN THE NEXT TWO YEARS AND UP TO ONE MILLION IN THREE YEARS WIRELESS COMMUNICATIONS COMPANY PACTEL A UNIT OF PACIFIC TELESIS GROUP SPUN OFF IN A DECEMBER 1993 INITIAL PUBLIC OFFERING ADVANCED 1 3/4 OR 81 TO 23 3/8 AFTER DONALDSON LUFKIN & JENRETTE SECURITIES UPGRADED THE STOCK TO A BUY AND ADDED IT TO THE FIRM'S RECOMMENDED LIST APPLE COMPUTER GAINED 1 TO 36 3/4 AS PREVIOUSLY REPORTED THE COMPANY SAID IT WILL UNVEIL A NEW VERSION OF NEWTON THAT IS CHEAPER AND CORRECTS SOME SHORTCOMINGS IN THE ORIGINAL PRODUCT WALDEN RESIDENTIAL PROPERTIES EDGED UP 5/8 TO 20 1/4 THE NEWLY PUBLIC SELFADMINISTERED REAL ESTATE INVESTMENT TRUST WHICH WAS FORMED TO CONTINUE THE WALDEN GROUP BUSINESS OF OWNING AND MANAGING APARTMENT PROPERTIES SAID IT BOUGHT 2694 APARTMENT UNITS FOR 71 MILLION PRICE/COSTCO DROPPED 1/8 TO 21 ON VOLUME OF NEARLY EIGHT MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 15 MILLION PRUDENTIAL SECURITIES DOWNGRADED THE COMPANY TO HOLD FROM BUY ON A PRICE BASIS AFTER THE STOCK REACHED A 52WEEK HIGH THURSDAY OF 21 5/8 ITS HIGHEST SINCE THE COMPANY WAS FORMED IN OCTOBER THROUGH THE MERGER OF PRICE CO AND COSTCO WHOLESALE CO 9403070109 940307 MICHEL DE CARVALHO RESIGNS FROM POST AT CS FIRST BOSTON LONDON A VETERAN OF CS FIRST BOSTON'S INVESTMENT BANKING OPERATIONS IN LONDON MICHEL DE CARVALHO IS TO STEP DOWN FOLLOWING CHANGES THAT HAVE SHIFTED THE BALANCE OF POWER WITHIN THE FIRM TO NEW YORK CS FIRST BOSTON ANNOUNCED THAT MR DE CARVALHO A MANAGING DIRECTOR IN CHARGE OF DEBT ISSUES FOR MAJOR CORPORATE CLIENTS HAD DECIDED TO RESIGN AS OF MARCH 15 TO PURSUE PERSONAL AND FAMILY BUSINESS INTERESTS CS FIRST BOSTON IS THE INVESTMENT BANKING UNIT OF CS HOLDING AG THE ZURICHBASED HOLDING COMPANY THAT ALSO OWNS CREDIT SUISSE CONTACTED BY TELEPHONE MR DE CARVALHO 49 YEARS OLD LINKED HIS DEPARTURE TO ORGANIZATIONAL CHANGES WITHIN THE CSFB GROUP WHICH UNTIL LAST YEAR OPERATED AS A TRIUMVIRATE OF LINKED BUT INDEPENDENT INVESTMENTBANKING UNITS IN NEW YORK LONDON AND TOKYO LAST JUNE CSFB REORGANIZED ALONG PRODUCT LINES WITH ITS MAIN INVESTMENT BANKING FUNCTIONS RUN FROM NEW YORK A CHANGE THAT EFFECTIVELY DOWNGRADED THE STATUS OF THE LONDON OPERATION TO THAT OF A BRANCH OF NEW YORK UNDER THE OLD SYSTEM COMMENTED MR DE CARVALHO CSFB'S LONDON STAFF WERE EUROPEANS WITH A CHAIRMAN WHO WAS EUROPEAN WE DIDN'T WORK ABROAD IN ONE OF THE BRANCHES WE WORKED AT HOME IN HEAD OFFICE NOW BY CONTRAST HE ADDED THE GROUP IS EFFECTIVELY HEADQUARTERED IN NEW YORK THOUGH HE HAD BEEN OFFERED POSTS IN NEW YORK HE SAID HE DECIDED AGAINST ACCEPTING THEM BECAUSE HE PREFERRED TO REMAIN IN EUROPE HIS DECISION TO LEAVE THE FIRM FOLLOWS THE RESIGNATION TWO WEEKS AGO IN ZURICH OF HANSJOERG RUDLOFF FORMER CHAIRMAN OF CS FIRST BOSTON IN LONDON FROM THE BOARD OF CS HOLDING WHICH HE JOINED A YEAR AGO THE TWO MOVES WEREN'T LINKED BUT MR DE CARVALHO HAD WORKED CLOSELY WITH MR RUDLOFF UNTIL HIS DEPARTURE FROM LONDON LAST YEAR MR DE CARVALHO JOINED CSFB FROM NM ROTHSCHILD & SONS LTD IN 1979 DURING THE FOLLOWING 10 YEARS HE WAS RESPONSIBLE FOR BUILDING UP THE GROUP'S INVESTMENT BANKING BUSINESS IN FRANCE BELGIUM AND LUXEMBOURG IN 1989 AT MR RUDLOFF'S REQUEST HE MOVED TO PARIS TO SET UP A CSFB SUBSIDIARY THERE HE RETURNED TO LONDON IN 1992 9403070108 940307 INTERNATIONAL US HUMANRIGHTS DEMANDS PUZZLE THE CHINESE MANY OF WHOM ENJOY NEW COMFORT AND FREEDOM BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA'S HUMANRIGHTS RECORD HAS THE US ALL RILED UP BUT MANY CHINESE LIKE STEVEN WANG WONDER WHAT THE FUSS IS ABOUT SITTING IN HIS PROSPERING ANTIQUE SHOP MR WANG MUSES THAT LIFE THESE DAYS IS PRETTY GOOD CHINA MIGHT NOT BE AS FREE IN SOME AREAS COMPARED TO THE US BUT IT'S FREER THAN SOME OTHER COUNTRIES SAYS THE 38YEAROLD ENTREPRENEUR TO BE ABLE TO PRESERVE A BASIC LIVELIHOOD TO GET TOGETHER WITH FRIENDS AND DISCUSS ISSUES TO TALK ABOUT THE NEWEST ECONOMIC AND CULTURAL DEVELOPMENTS THAT'S WHAT LIFE IS ABOUT AND IT'S ENOUGH HE ADDS FOR MANY CHINESE WHO EXPERIENCED STARVATION AND POLITICAL PARANOIA UNDER THE RULE OF MAO TSETUNG LIFE HAS BECOME INCREASINGLY COMFORTABLE AND MUCH FREER UNDER PARAMOUNT LEADER DENG XIAOPING ECONOMIC REFORMS HAVE LOOSENED IDEOLOGICAL CONTROLS AND REDUCED THE COMMUNIST PARTY'S ROLE IN THE PRIVATE LIVES OF ITS PEOPLE WEALTHINCREASING OPPORTUNITIES ARE SPARKING A NEW INDIVIDUALISM MANY CHINESE ARE PUZZLED BY WASHINGTON'S DEMANDS THAT CHINA IMPROVE ITS HUMANRIGHTS SITUATION OR FACE REVOCATION OF ITS MOST FAVORED NATION TRADING STATUS IN JUNE WHY IS THE US ALWAYS GOING ON ABOUT HUMAN RIGHTS FOR CHINA ASKS ONE CHINESE WORKER NO ONE CARES ABOUT THIS ISSUE TO BE SURE THE CHINESE ENJOY A GROWING SENSE OF PERSONAL FREEDOM ONLY WITHIN RIGID BORDERS POLITICAL DISSENT IS NOT PERMITTED MOST APPEAR CONTENT TO FOCUS ON MAKING MONEY FOR NOW BUT IT SEEMS INEVITABLE THAT PROSPERITY WILL EVENTUALLY BRING POLITICAL ACTIVISM AND THE GOVERNMENT ISN'T TAKING ANY CHANCES RECENTLY IT HAS LAUNCHED CRACKDOWNS ON MEDIA RELIGION AND SOME CULTURAL ACTIVITIES THE DEPTH OF BEIJING'S DISTRUST WAS SHOWN BY THE ROUNDUP LAST WEEK AND OVER THE WEEKEND OF CHINA'S FAMOUS DISSIDENT WEI JINGSHENG AND SEVERAL OTHERS MR WEI'S DETENTION WHICH LASTED MORE THAN 24 HOURS WAS PROBABLY PART OF AN EFFORT TO ENSURE ORDER AHEAD OF THE NATIONAL PEOPLE'S CONGRESS OPENING MARCH 10 BUT COMING JUST A WEEK BEFORE US SECRETARY OF STATE WARREN CHRISTOPHER IS DUE TO ARRIVE TO DISCUSS CHINA'S HUMANRIGHTS RECORD IT SHOWS CHINA'S DETERMINATION TO KEEP THE LID ON DISSENT AT ALL COST ANOTHER DISSIDENT ZHAI WEIMIN WHO SERVED A 3 1/2YEAR SENTENCE FOR HIS PRODEMOCRACY ACTIVITIES WAS ARRESTED ON SUNDAY RESPONDING TO THE ARREST OF MR ZHAI STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID THERE IS CERTAINLY A PATTERN OF DETENTIONS THAT AS THE SECRETARY HAS ALREADY SAID WE FIND TROUBLING AND WHICH CERTAINLY CASTS A PALL OVER THE SECRETARY'S COMING VISIT TO BEIJING IN ANOTHER SIGN OF BEIJING'S FEAR OF DISSIDENTS IT BARRED FIVE US JOURNALISTS WHO WERE MAKING A GROUNDBREAKING VISIT TO A LABORREFORM CAMP LAST WEEK FROM SEEING ANY JAILED ACTIVISTS IN PERSON PERHAPS FEARING WHAT THE DISSIDENTS MIGHT SAY POLITICAL ACTIVISM ASIDE ALMOST ANYTHING ELSE GOES IN CHINA A CHINESE VICE MINISTER SAYS HIS TEENAGE DAUGHTER TUNES IN TO VOICE OF AMERICA RADIO BROADCASTS THREE TIMES DAILY AND HE LISTENS TOO AT A RECENT PARTY PEOPLE'S BANK OF CHINA VICE GOVERNOR ZHOU ZHENGQING DANCED WITH EMPLOYEES IN THE CENTRAL BANK'S CAVERNOUS NEW DANCE HALL WHICH HAS MODERN DISCO LIGHTS AND LARGE SPEAKERS TAXI DRIVERS CURSE CHINA'S TOP LEADERSHIP OVER CORRUPTION AND INFLATION WHILE CHINESE INTELLECTUALS DEBATE AMONG THEMSELVES OVER THE FATE OF THE COUNTRY PERHAPS THE MAIN REASON FOR THE MORE RELAXED ATMOSPHERE IS THAT VALUES HAVE CHANGED MR DENG'S PHILOSOPHY STRESSING EFFICIENCY OVER IDEOLOGY HAS MADE CAPITALISM ALL THE RAGE AND SOCIALISM PASSE CHINA'S KEEPERS OF IDEOLOGY THE PARTY MILITARY AND GOVERNMENT ARE OFTEN KEPT BUSY SETTING UP COMPANIES AND PURSUING MATERIALIST GOALS THE IDEOLOGICAL VACUUM HAS BECOME SO SERIOUS AMONG THE YOUNGER GENERATION THAT BEIJING HAS LAUNCHED A NATIONALISM CAMPAIGN TO INSTILL VALUES IN CHINESE YOUTHS THE WANING ROLE OF THE DANWEI OR WORK UNIT HAS ALSO ADDED TO THE GROWING SENSE OF INDIVIDUAL FREEDOM IN THE PAST ALL CHINESE WERE ATTACHED TO A WORK UNIT WHICH DETERMINED NOT ONLY PROMOTIONS SALARIES AND HOUSING BUT ALSO WHETHER THEY COULD GET MARRIED OR TRAVEL THE UNIT KEPT EACH WORKER'S DOSSIER WHICH LISTED BIOGRAPHICAL AS WELL AS POLITICAL AND IDEOLOGICAL INFORMATION NOW AN INCREASING NUMBER OF CHINESE WORK OUTSIDE THE WORKUNIT SYSTEM GOING INTO BUSINESS FOR THEMSELVES OR FOREIGN COMPANIES AS AN ENTREPRENEUR MR WANG MUST RELY ON HIMSELF TO MAKE A LIVING BUT AT THE SAME TIME HE'S FREE OF THE CONTROLS OF A WORK UNIT NO ONE CARES WHERE I GO NO ONE CARES WHAT I TALK ABOUT IT'S VERY FREE SAYS MR WANG WHOSE COMPANY GENERATED 150000 YUAN 17232 IN PROFIT LAST YEAR ALTHOUGH HE APPROVES OF THE TREND TOWARD LESS INTERFERENCE SOMETIMES I THINK PEOPLE ARE TOO FREE THE PROFESSOR SIGHS HE CITES ONE EXAMPLE OF A COLLEAGUE WHO COLLECTS HIS PAY BUT REFUSES TO SHOW UP FOR WORK BEFORE THIS WOULD HAVE BEEN FORBIDDEN BUT NOW I CAN'T DO ANYTHING ABOUT IT PEOPLE ARE ONLY INTERESTED IN HOW MUCH MONEY YOU WILL PAY THEM MANY GOVERNMENT DEPARTMENTS STILL HOLD WEEKLY MEETINGS BUT THEY RARELY FOCUS ON IDEOLOGY MENG DEFU AND COLLEAGUES AT HIS DISTRICTLEVEL GOVERNMENT OFFICE MEET WEEKLY WE STUDY SOME DENG XIAOPING THOUGHT BUT MOSTLY IT'S ALL ECONOMICS OR TOPICS LIKE THE NEW COMPANY LAW THE DEMAND IS THAT ALL CADRES LEARN ABOUT THE MARKET ECONOMY HE SAYS A NEW INDIVIDUALISM AMONG CHINESE IS ALSO FINDING EXPRESSION IN APPEARANCES INSTEAD OF TRYING TO BLEND INTO CHINA'S ANONYMOUS MASSES CHINESE ARE NOW TRYING TO STICK OUT ON ONE RECENT SATURDAY NIGHT TWO CHINESE WOMEN SPORTING FUR COATS BIG HAIR AND RED LIPSTICK SWEPT INTO A CROWDED LOCAL RESTAURANT THEIR BOYFRIENDS FOLLOWED PROUDLY AS HEADS IN THE RESTAURANT TURNED TO STARE PEOPLE ARE ALSO MORE WILLING TO SPEAK THEIR MINDS MANY GRUMBLE LOUDLY ABOUT OFFICIAL CORRUPTION DOUBLEDIGIT INFLATION AND SOME OF CHINA'S UNPOPULAR LEADERS MOST CHINESE OPT TO LIVE WITHIN THE SOCIETY'S INVISIBLE BOUNDARIES AND CONCENTRATE ON GETTING AHEAD THE US SAYS CHINA HAS HUMANRIGHTS PROBLEMS BUT WE FEEL WE HAVE FREEDOM SAYS SUN SHIDAO A 51YEAROLD BANK OF CHINA DEPUTY MANAGER WHO OWNS HIS OWN APARTMENT AND ELECTRICAL APPLIANCES INCLUDING TELEVISION VIDEOCASSETTE RECORDER AND COMPUTER THE COMMUNIST PARTY HAS DONE OK THEY'VE SHOWN THEY CAN LEAD AND THEY CONTINUE TO RAISE THE STANDARD OF LIVING MR WANG SEES NO POINT IN DWELLING ON POLITICS IT'S TOO FAR AWAY FROM US WE OF THE THIRTYSOMETHING AND FORTYSOMETHING GENERATION FEEL WE SHOULD DO THINGS NOT WASTE TIME AND TALK ABOUT THE GOVERNMENT DOING SUCHANDSUCH A THING TODAY OR THE TENYEAR PLAN HAVING THIS OR THAT PROBLEM HE SAYS 9403070106 940307 PEPPERAND SALT LEARN GERSHWIN AND PORTER THE SITUATION IRKS HOW MY NEW FAUCET WORKS 9403070105 940307 US AUTO MAKERS PLAN OVERTIME FORD MOTOR RESUMES MINIVAN LINE DETROIT FORD MOTOR CO SAID IT TEMPORARILY HALTED PRODUCTION OF ITS NEW WINDSTAR MINIVAN TO REPLACE A DEFECTIVE SHOCK ABSORBER THAT SQUEAKS IN COLD WEATHER A SPOKESMAN SAID FORD IS DELAYING SHIPMENT OF 5400 WINDSTARS BECAUSE ALL ASPECTS OF ITS QUALITY STANDARDS WERE NOT MET THE COMPANY STOPPED PRODUCTION AT THE OAKVILLE ONTARIO ASSEMBLY PLANT WEDNESDAY TO REPLACE THE SHOCK ABSORBERS FORD SAID IT WILL RESUME PRODUCTION OF THE WINDSTAR TODAY WINDSTAR IS EXPECTED TO ROLL INTO DEALERSHIPS THIS MONTH SEPARATELY FORD SAID ALL BUT ITS WIXOM MICH LUXURYCAR ASSEMBLY PLANT WORKED OVERTIME LAST WEEK GENERAL MOTORS CORP AND CHRYSLER CORP BOTH SAID THEY PLAN OVERTIME THIS WEEK AT SEVERAL ASSEMBLY PLANTS ALTOGETHER THE DOMESTIC AUTO MAKERS PLAN TO BUILD 256321 VEHICLES UP 177 FROM THE 217742 VEHICLES BUILT IN THE SAME WEEK LAST YEAR 9403070104 940307 WHO'S NEWS CATO CORP CATO CORP CHARLOTTE NC ROBERT W BRADSHAW JR AND GRANT HAMRICK WERE NAMED DIRECTORS OF THIS WOMEN'S APPAREL RETAILER INCREASING BOARD MEMBERSHIP TO 12 MR BRADSHAW 60 YEARS OLD IS A PARTNER IN ROBINSON BRADSHAW & HINSON A CHARLOTTE LAW FIRM MR HAMRICK 55 IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CHARLOTTEBASED AMERICAN CITY BUSINESS JOURNALS INC A PUBLISHER OF BUSINESS NEWSPAPERS 9403070103 940307 REVIEW & OUTLOOK EDITORIAL ASIDES CORRECTION LAST WEEK WE INCORRECTLY IDENTIFIED REP RON MAZZOLI A KENTUCKY DEMOCRAT AS VOTING AGAINST AN IMMEDIATE INVESTIGATION OF THE HOUSE POST OFFICE SCANDAL HE VOTED IN FAVOR AND IN FACT REP MAZZOLI HAS OFTEN SHOWN SIMILAR COURAGE IN GOING AGAINST HIS PARTY'S LINE IN 1985 HE BUCKED HOUSE LEADERS AND VOTED WITH REPUBLICANS IN A DISPUTE OVER A CONTESTED INDIANA HOUSE RACE LIKE MANY OTHER DEMOCRATIC MODERATES REP MAZZOLI HAS DECIDED TO RETIRE THIS YEAR 9403070102 940307 LETTERS TO THE EDITOR HEARTBEATS IN THE ARTICLE SECRETS OF THE HEART FEB 14 IS THE FOLLOWING STATEMENT THE ELECTROCARDIOGRAM OF COURSE IS A RECORD OF THE ELECTRICAL IMPULSES THE NERVOUS SYSTEM SENDS THROUGH THE HEART MUSCLE TO TRIGGER EACH BEAT THE HEARTBEAT ORIGINATES WITHIN THE HEART AND IS NOT TRIGGERED BY THE NERVOUS SYSTEM THE NEURAL INPUT TO THE HEART SERVES TO REGULATE THE RATE OF BEATING BUT DOES NOT TRIGGER EACH BEAT 9403070100 940304 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9403070099 940307 HIGH ANXIETY ACCOUNTING PROPOSAL STIRS UNUSUAL UPROAR IN EXECUTIVE SUITES FASB'S STOCKOPTION PLAN THREATENS PAY PACKAGES LOBBYING GETS INTENSE A RISK TO HIGHTECH FIRMS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CORPORATE STOCK OPTIONS CAN TURN WELLPAID EXECUTIVES INTO EXTREMELY WELLPAID EXECUTIVES AND INTO WASHINGTON LOBBYISTS MCI COMMUNICATIONS CORP'S CHIEF FINANCIAL OFFICER DOUGLAS MAINE IS WORKING THE SENATE CITICORP'S CHIEF EXECUTIVE JOHN REED RECENTLY BENT THE EAR OF ARTHUR LEVITT JR CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION RAYCHEM CORP'S CHIEF EXECUTIVE ROBERT SALDICH CORNERED COMMERCE SECRETARY RON BROWN IN CALIFORNIA THEN SNAGGED A FEW MINUTES WITH DEPUTY TREASURY SECRETARY ROGER ALTMAN HERE IN WASHINGTON THE EXECUTIVES' CAUSE STOPPING THE FINANCIAL ACCOUNTING STANDARDS BOARD FROM REQUIRING COMPANIES TO CALCULATE THE VALUE OF CERTAIN EMPLOYEE STOCK OPTIONS AND CHARGE THAT AMOUNT AGAINST EARNINGS FOR THE FIRST TIME THE COMPLAINTS ABOUT THE OBSCURE ACCOUNTINGRULES BODY HAVE EVEN REACHED PRESIDENT CLINTON I'VE NEVER SEEN THE AMOUNT OF CORPORATE ANXIETY THAT THIS ISSUE HAS RAISED MR LEVITT SAYS SOME 70 WITNESSES PLAN TO ADDRESS FASB KNOWN AS FAZBEE IN FIVE DAYS OF PUBLIC HEARINGS THAT BEGIN TODAY IN STAMFORD CONN NEAR THE BOARD'S NORWALK HEADQUARTERS ONE REASON FOR THE HIGH ANXIETY SO MANY EXECUTIVES HAVE SO MUCH AT STAKE AND THOSE HIGH STAKES EXPLAIN WHY SOME OTHER PEOPLE ALSO ARE UPSET FASB'S REVIVAL OF A 1984 OPTIONS PROPOSAL COINCIDED WITH MR CLINTON'S ELECTION AND WITH HIS PROMISE TO RAISE TAXES ON THE RICH SOME CORPORATE EXECUTIVES RUSHED TO CASH IN THEIR OPTIONS JUST BEFORE THE 1992 TAX YEAR ENDED THE RESULTS WERE EYEPOPPING WALT DISNEY CO CHAIRMAN MICHAEL D EISNER AND PRESIDENT FRANK G WELLS EXERCISED OPTIONS TO BUY A TOTAL OF ABOUT 66 MILLION DISNEY SHARES THEN IMMEDIATELY SOLD NEARLY 51 MILLION OF THEM FOR A COMBINED INDICATED PRETAX PROFIT EXCEEDING 187 MILLION STEPHEN A WYNN MIRAGE RESORTS INC'S CHIEF EXECUTIVE OFFICER CASHED IN ONE MILLION STOCK OPTIONS FOR AN INDICATED PRETAX PROFIT OF 233 MILLION EVEN NOW A RECORD QUANTITY OF OPTIONS SITS IN EXECUTIVES' DESK DRAWERS LAST YEAR CEOS OF FORTUNE 100 COMPANIES DERIVED 29 OF THEIR TOTAL PAY FROM OPTIONS UP FROM 17 IN 1987 ACCORDING TO PEARL MEYER & PARTNERS INC A COMPENSATION CONSULTING FIRM IN NEW YORK EXECUTIVES OF SOME STARTUP COMPANIES DRAW AS MUCH AS 80 OF THEIR PAY FROM OPTIONS IF FASB ISSUES ITS NEW RULE LATER THIS YEAR AS GENERALLY EXPECTED IT WOULD TAKE EFFECT WITH 1997 FINANCIAL STATEMENTS BUT MANY COMPANIES AREN'T WAITING THEY ARE ALREADY REVISING THEIR EXECUTIVE STOCK OPTIONS SEE SOME COMPANIES ALREADY CONSIDER NEW STOCK PLANS WSJ MARCH 7 1993 MOST SHAREHOLDER ACTIVISTS DON'T QUARREL WITH OPTIONS WORTH TENS OF MILLIONS OF DOLLARS AS LONG AS THEY ARE RELATED TO A COMPANY'S PERFORMANCE USUALLY BASED ON THE ACHIEVEMENT OF SPECIFIED RETURNS ON INVESTMENT EQUITY OR ASSETS AND SOMETIMES ON THE STOCK'S REACHING A SPECIFIED LEVEL UNDER CURRENT ACCOUNTING RULES SUCH PERFORMANCEBASED OPTIONS ALREADY MUST BE CHARGED AGAINST A COMPANY'S PROFITS THAT'S NOT SO HOWEVER WITH THE REGULAR OPTIONS THE VAST MAJORITY THAT HAVE ATTRACTED THE CRITICISM THEY AREN'T LINKED TO A PERFORMANCE GOAL BUT ONLY TO THE RECIPIENT'S STAYING WITH THE COMPANY IF THE STOCK PRICE RISES EVEN WITH ONLY A GENERAL RISE IN THE MARKET THE RECIPIENT CAN BUY THE STOCK AT THE LOW OPTION PRICE AND SELL IT AT A PROFIT CRITICS COMPLAIN THAT IF THE STOCK FALLS SOME CORPORATE BOARDS LOWER THE EXERCISE PRICE OF THE OPTIONS A PROTECTIVE MANEUVER HARDLY AVAILABLE TO ORDINARY INVESTORS LIKE FASB SEN CARL LEVIN WANTS THE COST OF ALL OPTIONS TO BE CHARGED AGAINST EARNINGS THE CURRENT PRACTICE IS MISLEADING TO POTENTIAL INVESTORS DILUTES THE VALUE OF THE STOCK HELD BY CURRENT STOCKHOLDERS SHORTCHANGES THE COMPANY BY FORGOING CAPITAL AND JEOPARDIZES EMPLOYEE MORALE THE MICHIGAN DEMOCRAT SAID WHEN LAUNCHING A CAMPAIGN ON THE ISSUE IT ALSO ENCOURAGES COMPENSATION EXCESS BECAUSE OPTIONS CAN BE GIVEN WITHOUT REPORTING ANY COST TO THE CORPORATION COMPANIES DEFEND OPTIONS AS A HANDY CARROT FOR EXECUTIVES WHO PRESUMABLY WILL STRIVE TO INCREASE CORPORATE PROFITS AND THUS RAISE THE VALUE OF THEIR OWN STOCK DEFENDERS ALSO SAY THE EXECUTIVES' EVENTUAL EXERCISE OF THEIR OPTIONS SHOULDN'T SURPRISE SHAREHOLDERS WHO AT SOME POINT VOTED TO APPROVE THE OPTIONS GRANTS IF COMPANIES HAD TO TAKE A CHARGE EXECUTIVES WARN EARNINGS WOULD DROP DEPRESSING STOCK PRICES RAYCHEM WHICH EXTENDS STOCK OPTIONS TO 800 OF ITS 11000 EMPLOYEES ESTIMATES THAT THE PROPOSAL WOULD SLASH ITS ANNUAL EARNINGS AS MUCH AS 30 MCI WHICH GIVES OPTIONS TO ABOUT 4500 EMPLOYEES SAYS THAT IF THE FASB RULE HAD BEEN IN EFFECT IN 1992 ITS PROFIT WOULD HAVE BEEN REDUCED 12 SHAREDATA CORP OF CALIFORNIA ESTIMATES THAT CYPRESS SEMICONDUCTOR CORP'S 1993 EARNINGS WOULD HAVE BEEN WIPED OUT AN ALTERNATIVE TO CUTTING EARNINGS OF COURSE IS REDUCING OR ELIMINATING STOCK OPTIONS THEMSELVES MANY COMPANIES SAY THAT'S JUST WHAT THEY WILL DO IF THE FASB RULE IS ADOPTED AND THAT'S PARTLY WHY THE EXECUTIVES ARE RACING TO WASHINGTON RAYCHEM'S MR SALDICH WHO LAST YEAR DREW A SALARY AND BONUS OF 607289 HOLDS OPTIONS TO BUY STOCK WORTH AN ESTIMATED 600000 TO 15 MILLION OVER THE NEXT 10 YEARS WHEN HE LEARNED OF FASB'S PROPOSAL FOR A CHARGE AGAINST EARNINGS HE SAYS THE FIRST STAGE I WENT THROUGH WAS TOTAL RAGE MR SALDICH CONTENDS THAT THE PLAN WOULD HURT MORE THAN JUST FATCAT BUSINESS GUYS LIKE ME EXECUTIVES AT MUCH SMALLER COMPANIES AGREE FOR EXAMPLE ALL 150 EMPLOYEES OF VERDIX CORP A SMALL SOFTWARE MAKER IN HERNDON VA GET STOCK OPTIONS OUR SALARY SYSTEM DOESN'T ALLOW US TO PAY THE SAME SALARY AS BIG COMPETITORS CEO RALPH ALEXANDER SAYS IF FASB'S RULE IS ADOPTED WE WILL STOP GRANTING STOCK OPTIONS AND IT COULD CAUSE US TO LOSE CERTAIN PEOPLE HE ADDS ONE SOLUTION MIGHT BE TO TAKE THE FIRM PRIVATE ALSO OPPOSING THE FASB PLAN ARE ALL THE MAJOR ACCOUNTING FIRMS THEY SEE GREAT DIFFICULTY IN VALUING OPTIONS YEARS BEFORE THEY WILL BE EXERCISED IF THEY ARE EXERCISED AT ALL HIGHTECH COMPANIES A CRUCIAL CONSTITUENCY FOR THE CLINTON ADMINISTRATION ARE AT THE FOREFRONT OF THE LOBBYING DRIVE THE AMERICAN ELECTRONICS ASSOCIATION IS SPENDING 150000 ON SUCH LOBBYING INCLUDING AN AIRLIFT OF 100 EXECUTIVES THIS THURSDAY TO CALL ON OFFICIALS IN WASHINGTON OTHER TECHNOLOGY COMPANIES ARE WORKING WITH A WASHINGTON LOBBYIST KEN HAGERTY WHO FORMED THE COALITION FOR AMERICAN EQUITY EXPANSION TO FIGHT THE FASB PROPOSAL AMONG THE 34 COMPANIES THAT SIGNED UP ARE APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MCI AS WELL AS SOME TINY COMPANIES RATHER THAN LET THE LOBBYING DRIVE SEEM JUST A CAMPAIGN TO PROTECT SOME MULTIMILLIONDOLLAR PAY PACKAGES THE HIGHTECH GROUPS' LOBBYISTS ARE POINTING TO EVERYDAY PEOPLE WHO ALSO GET OPTIONS AN AD IN ROLL CALL A BIWEEKLY IN WASHINGTON SHOWS FOUR YOUNG WORKERS OF DIFFERENT RACES UNDER THE HEADLINE MEET THE FAT CATS' WHO RECEIVE STOCK OPTIONS SIMILARLY MCI PERSUADED LORI HARRISON A 28YEAROLD PURCHASING AGENT IN RICHARDSON TEXAS AND OTHER EMPLOYEES TO WRITE THEIR REPRESENTATIVES IN CONGRESS DEFENDING HER OPTIONS MS HARRISON SAYS I DO A GOOD JOB AND IT'S AN INCENTIVE FOR ME OTHERS FIGHTING THE FASB PLAN INCLUDE NASDAQ THE MARKET FOR THE STOCKS OF MANY SMALL COMPANIES THE BUSINESS ROUNDTABLE MADE UP OF TOP EXECUTIVES OF MANY CORPORATE GIANTS AND THE NATIONAL ASSOCIATION OF MANUFACTURERS ANOTHER OPPONENT IS A SOMETIME FOE OF CORPORATE LEADERS THE COUNCIL OF INSTITUTIONAL INVESTORS WHOSE PENSIONFUND MEMBERS HAVE FOUGHT HARD FOR MOREMODEST EXECUTIVE COMPENSATION THEY ARE TREATING THIS AS A LIFEORDEATH STRUGGLE A NEWS RELEASE LAST OCTOBER FROM THE COALITION FOR AMERICAN EQUITY EXPANSION DUBBED THE FASB PROPOSAL A POTENT AND POISONOUS JOB KILLER THAT WOULD HINDER THE FORMATION OF NEW COMPANIES THE AMERICAN ELECTRONICS ASSOCIATION TRUMPETED ITS MAJOR EFFORT TO KILL FASB OPTIONS PROPOSAL FASB USUALLY ISN'T CONSIDERED A COMIC GROUP ITS ROOTS GO BACK TO 1938 WHEN THE SEC DIRECTED BY CONGRESS TO OVERSEE ACCOUNTING RULES DECIDED TO LEAVE THE COMPLEX JOB TO THE ACCOUNTANTS FASB FORMED IN 1973 AND FUNDED BY ACCOUNTING FIRMS IS THE LATEST OF THREE SUCH BODIES IN 1984 THE BOARD TOOK UP THE STOCKOPTIONS QUESTION BUT DID LITTLE THE QUESTION ERUPTED AGAIN AROUND THE TIME OF PRESIDENT BUSH'S ILLFATED TRIP TO TOKYO IN 1992 WITH 12 AMERICAN EXECUTIVES IN TOW ALTHOUGH THE ENTOURAGE PLANNED TO COMPLAIN ABOUT JAPAN'S TRADE PRACTICES THE TRIP BACKFIRED IT MAINLY FOCUSED ATTENTION ON THE WAY AMERICAN EXECUTIVES' HUGE PAY DWARFED THAT OF JAPANESE EXECUTIVES PART OF THAT DIFFERENCE STEMS FROM STOCK OPTIONS SEN LEVIN JUMPED IN WITH A BILL THAT WOULD REQUIRE COMPANIES TO DISCLOSE WHAT THEY PAY EXECUTIVES AND WHY AND TO REDUCE CORPORATE EARNINGS BY THE VALUE OF ALL STOCK OPTIONS THE SEC ISSUED RULES REQUIRING THE DISCLOSURES BUT LET OPTIONS ALONE THE MICHIGAN SENATOR DIDN'T LAST YEAR HE INTRODUCED A BILL TO REQUIRE THAT OPTIONS BE CHARGED AGAINST PROFITS HE SAYS HE JUST WANTS THEM TO BE TREATED LIKE ALL OTHER FORMS OF COMPENSATION HE ADDS FASB SAID FOR ABOUT 10 YEARS THAT THEY OUGHT TO BE AND HIS BILL SOUGHT TO PROD THEM TO ACT WHEN FASB FINALLY PROPOSED ITS OPTIONS RULE LAST YEAR SEN LEVIN STOPPED PUSHING HIS BILL AMONG FASB'S SUPPORTERS ON THE ISSUE IS BILLIONAIRE INVESTOR WARREN BUFFETT THE BERKSHIRE HATHAWAY INC CHAIRMAN DOESN'T OBJECT TO EXECUTIVE OPTIONS BUT HAS WRITTEN THAT IT IS BOTH SILLY AND CYNICAL TO SAY THAT AN IMPORTANT ITEM OF COST SHOULD NOT BE RECOGNIZED SIMPLY BECAUSE IT CAN'T BE QUANTIFIED WITH PINPOINT PRECISION COMPENSATION EXPERT GRAEF CRYSTAL AND MANY SECURITIES ANALYSTS AGREE EVEN FASB'S CORPORATE OPPONENTS ARE HARD PRESSED TO REFUTE ITS BASIC TENET THAT STOCK OPTIONS HAVE VALUE THEIR BIGGEST QUESTION IS WHETHER ANY FORMULA COULD ACCURATELY VALUE THEM SINCE THEY MAY OR MAY NOT BE EXERCISED IN THE FUTURE GIVEN THE ACCURACY PROBLEMS THE EXECUTIVES QUESTION WHETHER VALUATION IS WORTH THE RESULTING DAMAGE TO THE BOTTOM LINE SO FAR FASB CONTENDS ITS PLAN IS SOUND AND REFUSES TO WORRY ABOUT ITS IMPACT ON CORPORATE EARNINGS OR EXECUTIVE PAY BUT FASB'S ADVERSARIES ARE MAKING HEADWAY FRESHMAN REP ANNA ESHOO A CALIFORNIA DEMOCRAT REPRESENTING SILICON VALLEY IS HOUNDING COLLEAGUES TO PASS A SENSE OF CONGRESS RESOLUTION DEPLORING THE FASB PROPOSAL SO FAR 50 HAVE SIGNED ON ON THE SENATE SIDE CONNECTICUT DEMOCRAT JOSEPH LIEBERMAN INTRODUCED A BILL LAST JUNE THAT WOULD STOP FASB COLD TREASURY SECRETARY LLOYD BENTSEN WEIGHED IN LAST APRIL WITH A LETTER TO FASB CHAIRMAN DENNIS BERESFORD URGING THE BOARD TO GIVE CAREFUL CONSIDERATION TO AN ALTERNATIVE APPROACH WHICH WOULD EMPHASIZE FULL DISCLOSURE BUT RETAIN CURRENT STOCKOPTION ACCOUNTING STANDARDSIN OTHER WORDS NO CHARGE TO EARNINGS COMMERCE SECRETARY BROWN AFTER MR SALDICH AND OTHER SILICON VALLEY EXECUTIVES CORNERED HIM FOR 40 MINUTES AT A CONFERENCE IN SAN FRANCISCO ORDERED A STUDY OF THE PLAN'S EFFECT ON THE US ECONOMY WHEN THE LOBBYISTS EVEN REACHED THE WHITE HOUSE SEN LEVIN WAS ALARMED IN A LETTER TO PRESIDENT CLINTON LAST OCTOBER HE ARGUED RIGHT NOW STOCK OPTIONS ARE THE ONLY KIND OF EXECUTIVE PAY WHICH A CORPORATION CAN DEDUCT FROM ITS TAXES AS AN EXPENSE BUT ISN'T REQUIRED TO INCLUDE ON ITS BOOKS AS AN EXPENSE IN A RESPONSE MR CLINTON WARNED THAT IT WOULD BE UNFORTUNATE IF FASB'S PROPOSAL INADVERTENTLY UNDERMINED THE COMPETITIVENESS OF SOME OF AMERICA'S MOST PROMISING HIGHTECH COMPANIES HOWEVER HE DISPARAGED THE NOTION OF LEGISLATING ACCOUNTING STANDARDS FOR ALL THE LOBBYING THE MOST DIRECT POWER OVER FASB LIES WITH THE SEC WHICH CAN OVERRULE ANY ACCOUNTING STANDARD THAT THE BOARD PROPOSES I THINK EVERYBODY IN THIS BUILDING IS BEING LOBBIED FROM THE PEOPLE WHO GUARD THE FRONT DOOR TO THE CHAIRMAN SAYS WALTER SCHUETZE THE SEC'S CHIEF ACCOUNTANT MR SCHUETZE WANTS FASB TO COMPLETE ITS WORK IN PEACE SO DOES THE COMMISSION EXCEPT FOR COMMISSIONER J CARTER BEESE JR WHO HAS OPPOSED THE PLAN SEC CHAIRMAN LEVITT HAS SIGNALED HIS RELUCTANCE TO INTERFERE WITH FASB'S RULEMAKING RIGHT NOW YET HE STILL LISTENS TO ITS OPPONENTS WITHIN LIMITS WHEN I HAVE DINNER WITH BUSINESS EXECUTIVES I TELL THEM WE'LL TALK ABOUT STOCK OPTIONS FOR 30 MINUTES NO MORE SAYS MR LEVITT A PRECISE TIMEKEEPER THEN WE TALK ABOUT SOMETHING MORE INTERESTING 9403070098 940307 LOCKHEED'S F22 FOUND TO HAVE NEW PROBLEMS STEALTHSYSTEM DIFFICULTIES MAY BE FRESH CHANCE FOR CRITICS OF PROGRAM BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL IN ANOTHER POTENTIALLY DAMAGING DEVELOPMENT FOR LOCKHEED CORP'S NEXTGENERATION F22 FIGHTER JET PROGRAM THE AIR FORCE HAS DETECTED SHORTFALLS IN THE QUALITY OF STEALTH FEATURES THAT HELP THE AIRCRAFT ELUDE RADAR DETECTION THE PROBLEM DISCLOSED BY THE AIR FORCE LATE FRIDAY COMES AS BACKERS OF THE JET ARE FIGHTING TO STAVE OFF FURTHER CONGRESSIONAL CUTBACKS IN THE 86 BILLION PROGRAM THE F22 ALREADY HAS SUFFERED A 30 CUT IN PLANNED PRODUCTION ALONG WITH DEVELOPMENT DELAYS RISING ESTIMATES OF PERJET COSTS AND DIFFICULTIES WITH ADVANCED ENGINES AND ONBOARD COMPUTING SYSTEMS UNDER TERMS OF THE F22 CONTRACT THE GOVERNMENT GENERALLY COVERS ADDITIONAL COSTS INCLUDING INCREASES RESULTING FROM FIXING TECHNOLOGICAL PROBLEMS BUT THE LATEST PROBLEM COULD GIVE CRITICS OF THE PROGRAM MORE AMMUNITION TO PUSH FOR CUTBACKS POSSIBLY COSTING JOBS AT LOCKHEED THIS CAN'T HELP SAID JACK MODZELEWSKI A PAINEWEBBER INC ANALYST ADDING THAT THE LATEST PROBLEMS PROVIDE JUST ONE MORE REASON TO SLOW IT DOWN TACKING ADDED EXPENSES FOR FIXES ONTO THE F22 NOW CLEARLY MAKES IT MORE DIFFICULT FOR THE PROGRAM SAID ANALYST WOLFGANG DEMISCH OF BT SECURITIES CORP WHO CALLED THE NEW PROBLEM AN ADVERSE DEVELOPMENT AND ACTUALLY SOMEWHAT UNEXPECTED AT THIS STAGE IN THE PROGRAM THE F22 THE ONLY ADVANCED US FIGHTER AIRCRAFT CURRENTLY SLATED FOR PRODUCTION IS INTENDED TO BE A HIGHLY MANEUVERABLE AIRCOMBAT AND ATTACK JET THAT CAN TRAVEL LONG DISTANCES AT SUPERSONIC SPEEDS WHILE AVOIDING RADAR DETECTION BY VIRTUE OF ITS DESIGN AND MATERIALS THE AIR FORCE SAID IN ITS STATEMENT THAT IT HAD IDENTIFIED SOME SHORTFALLS IN THE AIRCRAFT'S RADAR CROSSSECTION SIGNATURE WHICH IS A MEASURE OF ITS REFLECTIVITY ON ENEMY RADAR SCREENS THE AIR FORCE DIDN'T ELABORATE ON THE DEFECTS BUT SAID THEY WERE UNCOVERED BY AN ADVANCED MODELING TECHNIQUE THAT PERMITS SUCH DISCOVERIES DURING DESIGN PHASES AN AIR FORCE SPOKESWOMAN SAID PROGRAM MANAGERS WOULDN'T FIELD FURTHER QUESTIONS ABOUT ADDED COSTS OR OTHER ASPECTS OF THE PROBLEM UNTIL THIS WEEK AT THE EARLIEST A SPOKESMAN FOR LOCKHEED WHICH CONTROLS TWOTHIRDS OF THE F22 AFTER EXPANDING ITS STAKE THROUGH A 15 BILLION ACQUISITION FROM GENERAL DYNAMICS CORP LAST YEAR REFERRED ALL QUESTIONS TO THE AIR FORCE LOCKHEED IS BASED IN CALABASAS CALIF A SPOKESWOMAN FOR BOEING CO OF SEATTLE WHICH CONTROLS THE OTHER THIRD OF THE F22 ALSO DECLINED COMMENT OTHERS FAMILIAR WITH THE PROBLEM WERE GUARDED IN DISCUSSING IT SINCE AIR FORCE PROGRAM LEADERS AT WRIGHTPATTERSON AIR FORCE BASE IN OHIO ORDERED ALL INVOLVED IN THE PROGRAM TO DECLINE COMMENT THE DISCLOSURE WAS MADE AFTER SERVICE OFFICIALS DECIDED WORD OF THE PROBLEM WOULD LEAK TO THE PUBLIC ANYWAY THE PROBLEM IS SAID TO STEM FROM NUMEROUS SMALLER FEATURES OF THE PLANE RATHER THAN ITS OVERALL DESIGN THAT HAVE COMPROMISED ITS ABILITY TO AVOID DETECTION AND MUST BE CORRECTED BY SPECIAL TEAMS THAT ALREADY HAVE BEEN DISPATCHED TO WORK ON THE PROBLEM SUCH SMALLER FEATURES WOULD INCLUDE NUMEROUS PANELS THAT ALLOW ACCESS TO THE INSIDE OF THE PLANE FOR MAINTENANCE ALONG WITH UNEXPECTED BUMPS FROM RIVETS SEAMS GAPS BETWEEN SURFACES AND HOLES FOR VARIOUS PURPOSES IN THEIR STATEMENT AIR FORCE OFFICIALS HERALDED THEIR DISCOVERY OF THE PROBLEM DURING THE DESIGN PHASE AS A TRIBUTE TO ADVANCED MODELING PROCESSES THAT WILL ALLOW THEM TO CORRECT THE PROBLEMS BEFORE ANY PLANES ARE BUILT WHEN THEY BECOME HARDER AND MORE COSTLY TO FIX WHEN PROBLEMS WITH STEALTH FEATURES AROSE DURING FLIGHT TESTING ON THE B2 BOMBER MADE BY NORTHROP CORP AND BOEING THEY ADDED HEAVILY TO COSTS AND SUBJECTED THAT PLANE TO CRITICISM AND CUTBACKS THE AIR FORCE DISCLOSURE CAME AFTER THE CLOSE OF TRADING IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE LOCKHEED SHARES CLOSED AT 6625 UP 375 CENTS LOCKHEED DEVELOPED THE ADVANCED MODELING SYSTEM FOR THE F22 DURING THE LAST TWO YEARS AND FIRST USED IT LATE LAST YEAR SOME PEOPLE CLOSE TO THE PROGRAM EXPECT SOLUTIONS TO BE FULLY IDENTIFIED BY MIDAPRIL AND ALTERATIONS TO BE COMPLETED BY THIS TIME NEXT YEAR ANALYSTS SAID THAT WHILE THE MODELING SYSTEM IS LAUDABLE ITS SUCCESS NONETHELESS FORETELLS OF ADDED COSTS AT A PARTICULARLY INOPPORTUNE TIME ADDITIONAL CUTBACKS ON DEFENSE SPENDING ARE BEING SOUGHT BY CONGRESS AND THE PENTAGON WHERE MORE THAN 500 MILLION HAS BEEN CUT FROM DEVELOPMENTPHASE FUNDS FOR THE F22 DURING THE LAST THREE YEARS LAST YEAR PLANS TO MAKE 648 OF THE JETS BY THE YEAR 2010 WERE CUT TO 442 AIRPLANES AND CONGRESSIONAL CRITICS BACKED BY ASSESSMENTS FROM THE GENERAL ACCOUNTING OFFICE ARGUE THAT THE URGENCY TO BUILD THE F22 HAS FADED WITH THE FALL OF THE FORMER SOVIET UNION 9403070097 940307 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 5/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 31 DAYS 352 32 TO 44 DAYS 355 45 TO 59 DAYS 360 60 TO 89 DAYS 370 90 TO 129 DAYS 380 130 TO 179 DAYS 385 180 TO 239 DAYS 395 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 362 30 DAYS 375 60 DAYS 384 90 DAYS CERTIFICATES OF DEPOSIT 291 ONE MONTH 301 TWO MONTHS 315 THREE MONTHS 337 SIX MONTHS 362 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 373 THREE MONTHS 4 SIX MONTHS BANKERS ACCEPTANCES 350 30 DAYS 360 60 DAYS 370 90 DAYS 377 120 DAYS 385 150 DAYS 390 180 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 9/16 ONE MONTH 3 13/16 THREE MONTHS 4 1/16 SIX MONTHS 4 1/2 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 593 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 FEBRUARY 28 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 340 13 WEEKS 361 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 759 60 DAYS 765 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 757 60 DAYS 766 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 565 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 276 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403070096 940307 WILD WEEK FOR DERIVATIVES RESULTS IN RECORD VOLUME BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL FOR DERIVATIVES TRADER JAMES HEINZ THE PANDEMONIUM IN LAST WEEK'S MARKETS PEAKED WHEN HE TUMBLED OUT OF BED AT 4 AM WEDNESDAY TO CHECK QUOTES ON A FUTURES EXCHANGE 4000 MILES AWAY IN LONDON WHERE MR HEINZ'S CHICAGOBASED MARQUETTE PARTNERS TRADING GROUP EMPLOYS A STAFF OF EIGHT PEOPLE THE PRICE OF FUTURES CONTRACTS ON THE BENCHMARK GERMAN BOND HAD TUMBLED ABOUT 3000 A CONTRACT NO MORE SLEEP FOR ME HE SAYS I HAD TO BE SURE MY TRADERS WEREN'T ON THE WRONG SIDE OF THAT MOVE AS IT HAPPENED MR HEINZ SAYS HIS STAFF HAD DONE FINE THOUGH HE DECLINES TO DISCLOSE HIS PROFITS AND BY FRIDAY THE WORLD'S DERIVATIVES EXCHANGES HAD POSTED THE BUSIEST WEEK IN THEIR HISTORY ELECTRIFIED BY TURMOIL IN US AND FOREIGN BOND AND STOCK MARKETS IT WAS A WEEK DOMINATED BY FEAR OF INFLATION OF A PROTRACTED BEAR TREND IN US SECURITIES MARKETS OF THE PROSPECT FOR MORE INTERESTRATE TIGHTENING BY THE FEDERAL RESERVE AND OF A RISING MONEY SUPPLY IN GERMANY NOWHERE ARE THESE WORRIES MORE KEENLY FELT THAN IN MARKETS FOR DERIVATIVES OR INSTRUMENTS WHOSE VALUES ARE DERIVED FROM THE PRICES OF UNDERLYING ASSETS SUCH AS STOCKS AND BONDS AND WITH ECONOMIC UNCERTAINTY STILL RIFE IN GLOBAL MARKETS DERIVATIVES TRADING IS LIKELY TO CONTINUE AT A FRENETIC PACE THIS WEEK TRADERS SAY YOU TYPICALLY GET HEAVIER VOLUME IN A BEAR MARKET THAN IN A BULL MARKET BUT THIS HAS REALLY BEEN AMAZING SAYS KURT FRAIM COMANAGER OF A TRADING DESK FOR AUBREY G LANSTON & CO AT THE CHICAGO BOARD OF TRADE BIG INVESTORS LIKE HEDGE FUNDS AND PENSION FUNDS ARE FLOCKING HERE TO HEDGE THEMSELVES DERIVATIVES HAVE BECOME THE PLAY OF CHOICE FOR MANY OF THE WORLD'S LARGEST INVESTORS THE ATTRACTION IS THE LEVERAGE THEY OFFER FOR MILLIONS OF DOLLARS IN CASH AN INVESTOR CAN CONTROL BILLIONS OF DOLLARS OF SECURITIES AND THEIR SUITABILITY IN STRATEGIES AIMED AT HEDGING UNEXPECTED SWINGS IN STOCK PRICES INTEREST RATES AND CURRENCYEXCHANGE RATES WHAT FASCINATED MANY TRADERS ABOUT LAST WEEK'S FUROR WAS THAT MUCH OF IT SEEMED TO EMANATE FROM EUROPE AS TURMOIL IN EUROPEAN BOND AND STOCK MARKETS SPILLED OVER INTO US MARKETS FOR THE FIRST TIME THAT I CAN REMEMBER THE OVERSEAS MARKETS LED THE WAY SAYS ROB MERRILEES MANAGING PARTNER OF GBAR LP A CHICAGOBASED TRADING AND MARKETMAKING COMPANY THAT SPECIALIZES IN STOCK AND INTERESTRATE DERIVATIVES WE'D HAVE A CORRECTION IN OUR MARKETS AND THEN LONDON AND EUROPE WOULD TOP IT SETTING THE TONE FOR US THE NEXT DAY VOLUME SURGED TO RECORDS ON THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE OR LIFFE WHICH TRADES CONTRACTS BASED ON GERMAN ITALIAN AND BRITISH BOND MARKETS THE LONDON EXCHANGE POSTED AVERAGE DAILY VOLUME OF MORE THAN ONE MILLION FUTURES AND OPTIONS CONTRACTS FOR THE WEEK COMPARED WITH 761000 CONTRACTS A DAY FOR THE YEAR SO FAR AND 344000 A YEAR EARLIER LIFFE'S TRADING SYSTEMS WERE DRIVEN TOWARDS MAXIMUM CAPACITY SAYS RUPERT LOWE MANAGING DIRECTOR OF DBMG FUTURES & OPTIONS LTD A JOINT VENTURE TRADING COMPANY OF DEUTSCHE BANK AND MORGAN GRENFELL THROUGHOUT THE WEEK TRADERS SAY THE EXCHANGE WAS THE BENEFICIARY OF A PANICKED RUSH TO UNLOAD LONG POSITIONS OR WAGERS THAT EUROPEAN BOND PRICES WOULD RISE BECAUSE OF FEARS THAT A SURGING GERMAN MONEY SUPPLY WOULD PREVENT THE COUNTRY FROM CUTTING INTEREST RATES THERE APPEARED TO BE A SELLING CLIMAX MIDWEEK WHEN BANKS FUND MANAGERS AND TRADERS DUMPED POSITIONS ANOTHER LONDON TRADER SAYS REPORTEDLY IN THE THICK OF THIS SELLING FRENZY WERE SUCH WELLKNOWN HEDGEFUND INVESTORS AS MICHAEL STEINHARDT WHOSE FUNDS WERE SAID TO HAVE HAD A LOSS OF MORE THAN 600 MILLION PRICE VOLATILITY WAS SO WILD THAT THE LONDON EXCHANGE RAISED ITS MARGIN REQUIREMENTS OR THE MONEY TRADERS MUST POST AS GOODFAITH DEPOSITS ON THEIR FINANCIAL COMMITMENTS TO BRING IN AN ADDITIONAL 700 MILLION SAYS DAVID HARDY MANAGING DIRECTOR OF THE LONDON CLEARING HOUSE WHICH CLEARS LIFFE'S TRADES TRADING WAS SIMILARLY SPECTACULAR AT THE CHICAGO BOARD OF TRADE AND CHICAGO MERCANTILE EXCHANGE THE WORLD'S TWO BIGGEST DERIVATIVES MARKETS WHICH TRADE AN ARRAY OF CONTRACTS BASED ON US INTEREST RATES STOCKS AND FOREIGN CURRENCIES AT THE CME MOST OF THE ACTION WAS IN THE EXCHANGE'S EURODOLLAR FUTURES AND OPTIONS CONTRACTS WHICH TRACK THE MOVEMENT OF SHORTTERM US INTEREST RATES AS INTEREST RATES RISE EURODOLLAR FUTURES PRICES FALL AND THIS MARKET HAS BEEN IN A DOWN TREND SINCE THE FED TIGHTENED INTEREST RATES ON FEB 4 TRADERS SAY NOBODY WANTS TO BE LONG BECAUSE OF THE WIDESPREAD FEAR THAT THE FED MAY MOVE AGAIN TO RAISE RATES SAYS JON ANDERSON HEAD OF DERIVATIVE PRODUCTS TRADING FOR FRENCH BANK CREDIT AGRICOLE ON FRIDAY MORNING FOR INSTANCE EVEN MORE TREPIDATION THAN USUAL ATTENDED THE RELEASE OF THE LABOR DEPARTMENT'S FEBRUARY UNEMPLOYMENT REPORT TRADERS WORRIED THAT A BIGGERTHANEXPECTED INCREASE IN NONFARM PAYROLLS WOULD PROMPT THE FED TO TIGHTEN RATES EURODOLLAR FUTURES PRICES PLUNGED FRIDAY MORNING WHEN THE PAYROLL NUMBER DID INDEED COME OUT HIGHER THAN EXPECTED UP 217000 JOBS RATHER THAN THE WIDELY EXPECTED 139000 BUT THEY RALLIED BACK LATER AFTER THE FED DECLINED TO ANNOUNCE A RATE INCREASE AT THE BOARD OF TRADE WHICH OFFERS FUTURES CONTRACTS BASED ON US TREASURY BONDS AND NOTES TRADING HAS BEEN SURGING LATELY ON ANY NEWS REPORT OR GOVERNMENT FORECAST THAT HAS BEARING ON INFLATION LAST MONDAY FOR INSTANCE THE CHICAGO PURCHASING MANAGERS INDEX EDGED LOWER WHICH BOND FUTURES TRADERS INTERPRETED AS A CLUE THAT THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT WOULD ALSO REPORT LOWER PRICES ON THE FOLLOWING DAY BUT ON TUESDAY THE PRICESPAID INDEX IN THE NATIONAL ASSOCIATION'S FEBRUARY SURVEY SHOWED A SHARP INCREASE RENEWING INFLATION FEARS AND SENDING BOND FUTURES PRICES INTO A NOSE DIVE IN THIS CASE THE CHICAGO AND THE NATIONAL NUMBERS WERE OUT OF SYNC AND THAT PLAYED HAVOC WITH THIS MARKET MR FRAIM SAYS 9403070095 940307 SCANDAL AND THE PRESIDENCY BY ELLIOTT ABRAMS THERE COMES A MOMENT IN ANY MAJOR WASHINGTON SCANDAL WHEN THE ORDINARY RULES OF THE GAME ARE SUSPENDED AND NEW SCANDAL RULES BEGIN TO APPLY THIS WEEK THAT MOMENT WAS REACHED IN THE WHITEWATER AFFAIR THE ORDINARY RULES OF WASHINGTON POLITICAL LIFE ARE SOMEWHAT LAX OFFICIALS CAN GIVE HEADSUPS BRIEFINGS TO THE WHITE HOUSE ABOUT MATTERS OF POLITICAL INTEREST AND ARE THOUGHT OF AS TEAM PLAYERS IN CONGRESSIONAL TESTIMONY OFFICIALS CAN BOB AND WEAVE AND THIS IS CONSIDERED TO BE NORMAL PARTISAN OR INTERBRANCH COMBAT INFORMATION IS SHARED WITH POLITICAL ALLIES AND WITHHELD FROM ENEMIES SUCH BEHAVIOR IS VIEWED AS NORMAL EVEN LAUDABLE OFFICIALS ACT THIS WAY NOT ONLY BECAUSE THEY SEEK RECOGNITION AND REWARD FROM THE PRESIDENT AND HIS TEAM BUT BECAUSE THEY BELIEVE IN WHAT THEY'RE DOING THEY SEEK TO HELP AND PROTECT THE PRESIDENT TO ADVANCE HIS AGENDA AND TO BENEFIT THEIR OWN CAREERS ALL AT ONCE THIS PATTERN OF CONDUCT IS SIMPLY STOPPED WHEN SCANDAL RULES COME INTO EFFECT ALL OF A SUDDEN EVERY ACTION IS SUBJECT TO POTENTIAL REVIEW NOT UNDER POLITICAL BUT UNDER JUDICIAL STANDARDS THE NORMAL BRIEFINGS GIVEN TO WHITE HOUSE LAWYERS OR POLITICAL OPERATORS ARE NOW DISSECTED ON PAGE ONE OF THE NEWSPAPERS POLITICAL OPPONENTS TALK OF CONSPIRACY AND DEMAND RESIGNATIONS TESTIMONY SPEECHES AND PRESS CONFERENCES ARE JUDGED NOT BY THE BROAD AND FAMILIAR STANDARDS OF POLITICAL EXCHANGE BUT BY WHETHER THE OFFICIAL TOLD THE TRUTH THE WHOLE TRUTH AND NOTHING BUT THE TRUTH OFFICIALS WHO DELIGHTED AT SEEING THEIR NAMES IN THE NEWSPAPER WHO INDEED SCHEMED TO REACH THAT GOAL NOW WINCE AS THEY UNWRAP THE PAPER OR TURN ON CNN CHARGES OF COVERUP ARE HEARD AND ARE OFTEN UNFAIR THE PROBLEM ALL TOO OFTEN IS TIME LAG OFFICIALS WHO DO NOT REALIZE THAT SCANDAL RULES ARE IN EFFECT CONTINUE TO ACT UNDER THE OLD RULES WHICH ALLOW A CERTAIN AMOUNT OF CONCEALMENT OF MISTAKES SOME WILL PAY WITH THEIR JOBS OTHERS MAY PAY AN EVEN HIGHER PRICE FOR AN OFFICIAL EVEN REMOTELY CONNECTED TO THE EVENTS OR THE PEOPLE UNDER INVESTIGATION THE MOMENT OF RECOGNITION WHEN IT BECOMES CLEAR THAT A MAJOR SCANDAL HAS BEEN DECLARED BY THE PRESS IS A SAD ONE HENCEFORTH THE OFFICIAL MUST RECONSIDER EVERY ACTION HE OR SHE TAKES IN THE CONTEXT OF THE COURTROOM THE IMAGINARY INTERLOCUTOR IS NO LONGER THE WHITE HOUSE POLITICAL AIDE DEMANDING TO KNOW WHY SOME ACTION WAS NOT TAKEN BUT THE INDEPENDENT PROSECUTOR DEMANDING TO KNOW WHY IT WAS NOW THE DEMANDS OF POLITICAL AND PERSONAL LOYALTY MUST BE GIVEN LOWER PRIORITY THOSE OF SELFPRESERVATION A HIGHER ONE THE OFFICIAL MUST CONTEMPLATE HIRING A LAWYER AND PAYING FOR ONE OUT OF A FAMILY BUDGET THAT ALL OF A SUDDEN SEEMS TO BE FALLING APART HE OR SHE MUST CONSIDER TRYING TO AVOID PEOPLE WHO WERE BEING CULTIVATED JUST A FEW DAYS AGO AND MUST WONDER HOW THIS GOVERNMENT SERVICE ONCE SEEN AS A TICKET TO THE STARS WILL AFFECT FUTURE EMPLOYMENT POSSIBILITIES THE EFFECT ON MORALE IS OBVIOUS THIS IS HOW THE SCANDAL RULES AFFECT THE INDIVIDUAL OFFICIAL FOR THE ADMINISTRATION AS A WHOLE THE CONSEQUENCES ARE EQUALLY GRAVE WHEN THIS CONGLOMERATION OF OFFICIALS BEGINS TO SEE SOME AMONG ITS SMALL AND COHESIVE GROUP AS DOOMED AND SOME AS DANGEROUS COHESION FRAYS THE ABILITY TO TAKE RISKS TO ADVANCE THE PRESIDENT'S AGENDA DECLINES PRECIPITOUSLY THE ASSUMPTION OF FUTURE COOPERATION AND SUCCESS DISAPPEARS THIS TURNS A PRESIDENT INTO A LAME DUCK OVERNIGHT THE TIME AVAILABLE TO PLAN AND IMPLEMENT EFFECTIVE ADMINISTRATION ACTION ALWAYS IN SHORT SUPPLY IS CUT BACK BECAUSE SO MUCH EFFORT IS DIVERTED TO HANDLING THE SCANDAL AND ABOVE ALL IT'S IMPOSSIBLE FOR THE ADMINISTRATION TO RECOVER A SENSE OF SUREFOOTEDNESS AND CONFIDENCE IN ITS OVERALL CONDUCT THE APPLICATION OF NEW SCANDAL RULES THAT ARE BOTH UNFAMILIAR AND SOMEWHAT INDETERMINATE MAKES THE ADMINISTRATION TENTATIVE WHERE IT ONCE WOULD HAVE BEEN DECISIVE AND PRESENTORIENTED WHERE IT ONCE WOULD HAVE BEEN PLANNING FOR FUTURE BATTLES AND TRIUMPHS THUS THE INVOCATION OF SCANDAL RULES THIS WEEK PERMANENTLY MARKS THE CLINTON ADMINISTRATION AND NOT UNTIL INDEPENDENT COUNSEL ROBERT FISKE CLOSES HIS DOORS YEARS HENCE WILL THINGS EVER RETURN TO NORMAL WHEN COCKTAIL PARTY CONVERSATIONS TURN TO WHICH FAMOUS CRIMINAL LAWYER IS REPRESENTING WHOM AND WHO HAS BEEN BEFORE THE GRAND JURY THE SPIRIT OF POLITICS WITH WHICH THE NEW TEAM CAME TO WASHINGTON OF FUN AND EXCITEMENT OF DOING GOOD AND DOING WELL IS GONE FOREVER MR ABRAMS ASSISTANT SECRETARY OF STATE FOR INTERAMERICAN AFFAIRS IN THE REAGAN ADMINISTRATION WAS CONVICTED OF WITHHOLDING INFORMATION FROM CONGRESS IN THE IRANCONTRA AFFAIR PRESIDENT BUSH SUBSEQUENTLY PARDONED HIM 9403070094 940307 A CORPORATE WALLFLOWER SUDDENLY GETS MORE ATTRACTIVE AS FASB'S PLAN LOOMS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE FINANCIAL STANDARDS ACCOUNTING BOARD GENERALLY EXPECTED TO APPROVE A NEW RULE THAT WOULD TREAT ALL KINDS OF EXECUTIVE STOCK OPTIONS ALIKE STOCK COMPENSATION TIED TO A COMPANY'S OVERALL PERFORMANCE LONG A CORPORATE WALLFLOWER IS SUDDENLY BLOSSOMING ALREADY COMPANIES ISSUING PERFORMANCEBASED STOCK MUST CHARGE THE COST AGAINST EARNINGS THE NEW RULE WOULD REQUIRE SIMILAR CHARGES FOR OPTIONS TIED SOLELY TO THE STOCK PRICE COMPANIES AREN'T WAITING UNTIL THEY WOULD HAVE TO ADHERE TO THE PROPOSED RULE WHICH WOULD TAKE EFFECT WITH 1997 FINANCIAL STATEMENTS SOME HAVE ALREADY SWITCHED TO PERFORMANCEBASED STOCK PROGRAMS OR ARE CONSIDERING SUCH A CHANGE THE PROGRAMS ARE POPULAR WITH SHAREHOLDERS BECAUSE THEY REWARD EXECUTIVES ONLY IF THE COMPANY TURNS IN A STRONGER PERFORMANCE BASED ON REACHING SPECIFIED RETURNS ON INVESTMENT EQUITY OR ASSETS AND SOMETIMES ON THE STOCK PRICE AS WELL PERFORMANCEBASED COMPENSATION IS THE MOST ATTRACTIVE OPTION AVAILABLE TO BUSINESS WITH FASB MOVING AHEAD ON ITS PROPOSAL SAYS PETER CHINGOS A KPMG PEAT MARWICK PARTNER SPECIALIZING IN EXECUTIVE PAY IF THE BOARD ADOPTS THE RULE HE EXPECTS A REVIVAL OF MANY TYPES OF PERFORMANCEBASED STOCK COMPENSATION THAT FELL OUT OF FAVOR IN THE EARLY 1970S WHEN AN ACCOUNTING RULE CHANGE BEGAN PENALIZING SUCH PROGRAMS FIRST AMERICAN CORP A BANK HOLDING COMPANY IN NASHVILLE TENN IS CONSIDERING A CHANGE IN ITS STOCKCOMPENSATION PROGRAM THE COMPANY SAYS IT MAY DROP ITS CURRENT SYSTEM OF RESTRICTED STOCK GRANTS THESE SHARES CAN BE SOLD DURING A CERTAIN PERIOD IF CERTAIN GOALS ARE MET AND THEY MAY BE SOLD AFTER THAT WITH THE SOLE PROVISO THAT THE RECIPIENT REMAIN WITH THE COMPANY THE EXECUTIVES GET THEM AT NO COST TO THEMSELVES AFTER 15 YEARS OF SERVICE INSTEAD FIRST AMERICAN SAYS IT MAY SUBSTITUTE ONLY PERFORMANCEBASED GRANTS OF RESTRICTED STOCK IF THE FASB PROPOSAL TAKES EFFECT IT'S A BETTER BALLGAME FOR PERFORMANCEBASED STOCK GRANTS UNDER THE FASB PROPOSAL SAYS JOHN W SMITHWICK AN EXECUTIVE VICE PRESIDENT IRA KAY HEAD OF WYATT CO'S EXECUTIVECOMPENSATION PRACTICE IN NEW YORK SAYS TWO BIG RETAILERS HE ADVISES ARE ABOUT TO SHIFT TO PERFORMANCEBASED PACKAGES ONE WOULD GIVE EMPLOYEES STOCK FREE IF OVER A SEVENYEAR PERIOD THE COMPANY ACHIEVES A CERTAIN RETURN ON INVESTMENT HE SAYS THE OTHER PLANS TO AWARD OPTIONS THAT ONLY COULD BE EXERCISED IF THE COMPANY'S STOCK REACHES A CERTAIN SET PRICE EDWARD GRASKAMP A PRINCIPAL IN CHICAGO FOR PAY CONSULTANTS WILLIAM M MERCER INC SAYS FOUR CORPORATE CLIENTS ARE CONSIDERING REPLACING REGULAR STOCK OPTIONS WITH ONES TIED TO PERFORMANCE THE COMPANIES INVOLVED IN TELECOMMUNICATIONS FINANCIAL SERVICES FOOD DISTRIBUTION AND MANUFACTURING ARE REACTING TO SHAREHOLDER CRITICISM THAT REGULAR OPTIONS ARE TOO MUCH OF A GIVEAWAY HE SAYS HE ADDS THAT THE FASB PROPOSAL MAKES PERFORMANCEBASED STOCK PLANS MORE ATTRACTIVE SEE RELATED ARTICLE HIGH ANXIETY ACCOUNTING PROPOSAL STIRS UNUSUAL UPROAR IN EXECUTIVE SUITES FASB'S STOCKOPTION PLAN THREATENS PAY PACKAGES LOBBYING GETS INTENSE A RISK TO HIGHTECH FIRMS WSJ MARCH 7 1994 9403070093 940307 DIRECTORS CONTROL YOUR DERIVATIVES BY RICHARD C BREEDEN IN RECENT YEARS THERE HAS BEEN A CRESCENDO OF DISCUSSION ABOUT THE NEED TO REGULATE THE ACTIVITIES OF FINANCIAL INSTITUTIONS IN THE BURGEONING MARKET FOR OVERTHECOUNTER DERIVATIVES OF ALL TYPES CENTRAL BANKERS IN THE US AND AROUND THE WORLD AMONG OTHERS HAVE PERSISTENTLY SUGGESTED THEY MAY NEED A STRONGER REGULATORY ROLE DESPITE SOME LEGITIMATE SUPERVISORY ISSUES THE PUBLICPOLICY DEBATE TOO OFTEN SOUNDS LIKE A CASE OF REGULATION IN SEARCH OF A PROBLEM RATHER THAN THE OTHER WAY AROUND THE GREATEST THREAT FROM DERIVATIVES IS NOT TO THE FINANCIAL SYSTEM AS A WHOLE BUT RATHER TO THE EARNINGS OF PARTICULAR COMPANIES NOTABLY COMPANIES USING DERIVATIVES YES THESE MARKETS ARE COMPLEX BUT THE COMPETING FIRMS ARE ALREADY SUBJECT TO MARKET DISCIPLINES THAT ARE FAR STRONGER THAN BUREAUCRATIC DO'S AND DON'TS THE PROLIFERATION OF TRIPLEARATED DERIVATIVE SUBSIDIARIES IS A SIGN OF THE HEALTHY FUNCTIONING OF THESE MARKET DISCIPLINES MORE IMPORTANT THAN REGULATORS THE PEOPLE WHO SHOULD BE LOOKING MOST CLOSELY AT DERIVATIVES ACTIVITIES ARE THE SENIOR EXECUTIVES AND DIRECTORS ESPECIALLY MEMBERS OF AUDIT COMMITTEES OF ANY COMPANY WITH SIGNIFICANT LEVELS OF PARTICIPATION IN DERIVATIVES THIS IS THE CRUCIAL GROUP FOR PREVENTING UNNECESSARY LOSSES THROUGH THE FAILURE OF COMPANIES TO FOLLOW SENSIBLE MANAGEMENT PRACTICES IN ADDRESSING BOTH RISKTAKING AND RISKCONTROLS THE RECENT DISASTER AT THE GERMAN GIANT METALLGESELLSCHAFT HIGHLIGHTS THE NEED FOR CAUTION AMONG SENIOR MANAGERS OF USER FIRMS A SUBSIDIARY'S LOSSES IN OIL FUTURES AND FORWARDS OF NEARLY 1 BILLION ON TOP OF POOR OPERATING RESULTS GENERALLY DROVE THE PARENT COMPANY TO THE BRINK OF A BANKRUPTCY THAT COULD HAVE COST 58000 EMPLOYEES THEIR JOBS WITHOUT A COSTLY RESCUE FROM ITS LENDERS AND SHAREHOLDERS METALLGESELLSCHAFT'S POOR CONTROL OF ITS FINANCIAL MARKET RISKS WOULD HAVE DESTROYED THIS MAJOR CORPORATION METALLGESELLSCHAFT APPARENTLY PUT ITS SURVIVAL AT ISSUE BY OFFERING CUSTOMERS FIXEDPRICE DELIVERY CONTRACTS OF OIL FOR PERIODS AS LONG AS 10 YEARS SOMETHING THAT WOULD HAVE SMACKED OF FINANCIAL IMPRUDENCE EVEN IF THE COMPANY HAD BEEN LONG BY AN EQUIVALENT AMOUNT OF OIL RESERVES IN THE GROUND WHICH IT WAS NOT THE COMPANY THEN SOUGHT TO HEDGE THE RISK OF HIGHER OIL PRICES BY PURCHASING A SERIES OF SHORTTERM DELIVERY CONTRACTS IN OIL FUTURES AND FORWARD MARKETS AND BY CONSTANTLY ROLLING EXPIRING PURCHASE CONTRACTS OVER INTO NEW SHORTTERM POSITIONS WHEN TRADERS IN THE MARKET LEARNED THAT THE COMPANY HAD LOCKED ITSELF INTO MASSIVE SHORTTERM POSITIONS THAT HAD TO ROLL OVER AT PREDICTABLE TIMES TO MAINTAIN HEDGING COVERAGE THEY POSITIONED THEMSELVES TO PROFIT HANDSOMELY AT METALLGESELLSCHAFT'S EXPENSE INDEED PUBLISHED REPORTS SUGGEST THAT THE COMPANY MAY HAVE LOST AS MUCH AS 30 MILLION EVERY TIME IT ROLLED EXPIRING POSITIONS INTO LONGERDATED POSITIONS THOUGH THEORETICALLY THIS SHOULD HAVE RESULTED IN AT LEAST A SLIGHT PROFIT METALLGESELLSCHAFT IS NOT THE ONLY COMPANY IN RECENT YEARS TO HAVE AWAKENED TO FIND A HUGE LOSS STEMMING FROM ILLCONCEIVED OR POORLY CONTROLLED DERIVATIVES ACTIVITIES IN 1992 ROYAL DUTCH/SHELL DISCOVERED THAT ITS 50OWNED JAPANESE AFFILIATE SHOWA SHELL HAD LOST 82 OF ITS ENTIRE SHAREHOLDERS' EQUITY THROUGH SPECULATION BY A SENIOR MANAGER IN THE FOREIGNCURRENCY MARKET SHOWA SHELL HAD AN ANNUAL DOLLARDENOMINATED EXPENSE FOR RAW MATERIAL IMPORTS THAT IT SOUGHT TO HEDGE IN CURRENCY FUTURES MARKETS BY LOCKING IN A FIXED RATE OF EXCHANGE THOUGH THIS IS A STANDARD AND QUITE PRUDENT PRACTICE FOR A CORPORATE TREASURER'S OFFICE WHAT WAS NOT STANDARD WAS THE DECISION TO PURCHASE MORE THAN 6 BILLION FOR FUTURE DELIVERY THOUGH THE OBLIGATION OF THE COMPANY FROM ACTUAL TRADE FLOWS WAS LIKELY TO BE NO MORE THAN 1 BILLION THUS ITS HEDGING ACTIVITY IN THE CURRENCY MARKET INVOLVED SPECULATING ON FIVE DOLLARS FOR EVERY DOLLAR HEDGED UNFORTUNATELY SHOWA SHELL PLACED ITS BET ON THE WRONG SIDE OF THE MARKET WHEN IT AGREED TO PAY ABOUT 145 YEN FOR EVERY DOLLAR WHEN THE VALUE OF THE DOLLAR FELL BY ALMOST ONETHIRD AGAINST THE YEN THE COMPANY HAD LOCKED IN A HEFTY LOSS ON EACH DOLLAR IT BOUGHT AND IT WAS OBLIGATED TO BUY SIX TIMES AS MANY DOLLARS AS IT NEEDED THIS DECISION WAS REPORTEDLY MADE BY A CORPORATE OFFICIAL THOUGHT TO BE TOO SENIOR TO HAVE HIS JUDGMENT QUESTIONED AND NEITHER THE COMPANY NOR ITS PARENT HAD ADEQUATE CONTROLS IN PLACE TO DETECT OR CONTROL THE PROBLEM ANOTHER EXAMPLE AT ABNAMRO A LARGE EUROPEAN BANK ONE OF ITS KEY FOREIGNCURRENCY TRADERS INSERTED FALSE EXPECTED VOLATILITIES FOR OPTION POSITIONS INTO THE BANK'S FINANCIAL REPORTING SYSTEM THIS CREATED THE APPEARANCE OF PROFITS WHEN IN FACT THE BANK'S POSITIONS WERE GENERATING GROWING LOSSES BECAUSE THE BANK DID NOT REQUIRE SOMEONE INDEPENDENT OF THE TRADING DESK TO VALIDATE THE KEY PRICING VARIABLES THE BANK HAD LOST 60 MILLION BEFORE IT DISCOVERED THAT ITS SUPPOSEDLY PROFITABLE POSITIONS WERE LOSERS IN THE REAL WORLD LOSSES IN THESE MARKETS CAN STRIKE AN INDIVIDUAL COMPANY WITH HURRICANE FORCE WITHIN ANY COMPANY ACTIVE IN THE MARKETS MANAGERS OR TRADERS CAN TURN VALUABLE TOOLS FOR RISK MANAGEMENT INTO POTENT TOOLS FOR RISK CREATION WHAT IS NEEDED ARE STRONG INTERNAL CONTROLS NOT ONESIZEFITSALL REGULATION DESIGNING SUCH CONTROLS IS SOMETHING THAT MUST BE DONE IN A MANNER HIGHLY SPECIFIC TO EACH COMPANY'S ORGANIZATION CULTURE AND OBJECTIVES EVEN SO A FEW GENERAL PRINCIPLES APPLY IN LOOKING AT A FIRM'S POLICIES AND PRACTICES EVERY DIRECTOR OR CHIEF EXECUTIVE OF A COMPANY WITH A SIGNIFICANT DERIVATIVES POSITION WOULD DO WELL TO ASK THE FOLLOWING QUESTIONS MANY COMPANIES USE WEEKLY OR EVEN MONTHLY FINANCIAL REPORTS YET POSITIONS IN MOST FINANCIAL MARKETS CAN CHANGE RADICALLY IN A MATTER OF HOURS IT SHOULD BE AXIOMATIC THAT YOU CAN'T CONTROL RISK MUCH LESS MANAGE IT IF YOU DON'T KNOW EXACTLY WHERE IT IS CREATED WITHIN THE ORGANIZATION MANAGEMENT SHOULD HAVE A RIGOROUS AND COMPREHENSIVE RISK MAP TO EVALUATE BOTH THE TYPES AND DEGREES OF RISK THE COMPANY INCURS THE GROUP OF 30 AND OTHERS HAVE SAID THAT FINANCIAL INSTITUTIONS SHOULD MARK THEIR DERIVATIVES TO MARKET AT LEAST DAILY HOWEVER THIS IS EASIER SAID THAN DONE BECAUSE MANY OTC DERIVATIVES MARKETS ARE ILLIQUID THE VALUE OF POSITIONS IN SUCH ILLIQUID MARKETS OFTEN CAN BE DETERMINED ONLY BY MATHEMATICAL MODELS SINCE THERE ARE NOT ANY REPORTED TRADING MARKET PRICES ON EQUIVALENT TRANSACTIONS EVEN ASSUMING A FIRM'S MODEL IS CORRECT THE COMPUTATION OF VALUE THAT RESULTS IS ONLY AS GOOD AS THE ASSUMPTIONS ABOUT YIELD CURVES VOLATILITIES AND OTHER INPUTS THAT ARE FED INTO THE MODEL PUT DIFFERENTLY COMPANIES WILL BE ACCRUING PROFITS TODAY THAT IN THE REAL WORLD WILL BE REALIZED ONLY OVER MANY YEARS DON'T WORRY WE ARE HEDGING THE RISK SHOULD NOT BE CONSIDERED AN ACCEPTABLE ANSWER TO THE QUESTION OF HOW A COMPANY IS MAKING OFFSETTING PROVISIONS FOR THE SPECIFIC RISKS IT INCURS ALL HEDGES ARE NOT CREATED EQUAL AND IT IS IMPORTANT TO UNDERSTAND EXACTLY WHAT INTERESTRATE RISK VOLATILITY RISK ETC IS BEING HEDGED AND HOW THE HEDGE IS BEING IMPLEMENTED EVEN WITHIN A PARTICULAR TYPE OF RISK SUCH AS INTERESTRATE RISK IT MAY NOT BE POSSIBLE TO HEDGE MORE THAN A PORTION OF THE YIELD CURVE AND THE DURATIONS OF RISKS AND AVAILABLE HEDGES MAY NOT MATCH AWARDING BONUSES SOLELY ON THE BASIS OF ACCRUED PROFITS WITHOUT REGARD TO THE AMOUNT OF THE FIRM'S CAPITAL PUT AT RISK OR HOW LONG THE COMPANY WILL BE AT RISK BEFORE PROFIT IS ACTUALLY REALIZED MAY ENCOURAGE UNDUE RISKTAKING WHEN COMPANIES LOSE LARGE SUMS THROUGH UNAUTHORIZED TRADING OR SPECULATION IT OFTEN OCCURS DUE TO THE ACTIONS OF SENIOR PERSONNEL JUNIOR PERSONNEL IN A TREASURER'S OFFICE MAY NOT FEEL COMFORTABLE CALLING THE CEO IF THEIR OWN BOSS TAKES ABNORMALLY LARGE OR RISKY POSITIONS THEREFORE WRITTEN RISK LIMITS AUTOMATED EXCEPTION REPORTING STRONG INTERNAL AUDITING AND OTHER STEPS ARE VITAL TO MAKE SURE THAT RISKCONTROL POLICIES ARE ALWAYS FOLLOWED BOTH THE CEO AND THE MEMBERS OF THE BOARD SHARE DIRECT RESPONSIBILITY FOR OVERSEEING THE COMPANY'S INTERNAL FINANCIAL CONTROLS WHERE LARGE EXPOSURES ARE BEING INCURRED IN DERIVATIVES THE BOARD OR AT LEAST THE AUDIT COMMITTEE SHOULD LOOK HARD AT ALL THE ISSUES DISCUSSED ABOVE MEMBERS OF THE BOARD MAY NOT KNOW HOW TO CREATE OR TRADE DERIVATIVES BUT THEY SHOULD KNOW HOW TO ASK THE RIGHT QUESTIONS AND TO DEMAND THE RIGHT ANSWERS USED WITH CARE DERIVATIVES ARE TERRIFIC PRODUCTS THAT CAN ENHANCE PROFITABILITY AND REDUCE VOLATILITY USED IN A WILD OR UNCONTROLLED MANNER THEY CAN BE A ONEWAY TICKET TO FINANCIAL DISASTER THE BOARD AND SENIOR MANAGERS SHOULDN'T WAIT FOR REGULATORS TO MAKE SURE THEIR COMPANY IS FOLLOWING A WELLCONTROLLED AND PRUDENT PATH MR BREEDEN FORMER CHAIRMAN OF THE SEC IS CHAIRMAN OF THE FINANCIAL SERVICES GROUP OF COOPERS & LYBRAND 9403070092 940307 COMMODITIES MAN BLAMED FOR LOSS SUES GERMAN GIANT BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE MAN BLAMED BY METALLGESELLSCHAFT AG FOR MASSIVE OILTRADING LOSSES THAT NEARLY TOPPLED THE GERMAN INDUSTRIAL GIANT IS SUING HIS FORMER EMPLOYER AND ITS MAIN SHAREHOLDER DEUTSCHE BANK SEEKING 1 BILLION IN DAMAGES FOR ALLEGED DEFAMATION AND CIVIL CONSPIRACY METALLGESELLSCHAFT THE BIG METALS AND ENGINEERING CONGLOMERATE THAT IS GERMANY'S 14TH LARGEST CORPORATION STUNNED ITS SHAREHOLDERS LAST DECEMBER BY ANNOUNCING LOSSES OF ABOUT 1 BILLION IN ITS TRADING AT THE NEW YORK MERCANTILE EXCHANGE AND OFFEXCHANGE MARKETS IN ENERGY DERIVATIVES W ARTHUR BENSON FORMER PRESIDENT OF METALLGESELLSCHAFT UNIT MG REFINING & MARKETING INC AND HEAD OF THE COMPANY'S US OILTRADING OPERATION ALLEGES IN HIS COMPLAINT THAT THESE CATASTROPHIC LOSSES NEED NOT HAVE OCCURRED MR BENSON ASSERTS IN THE LAWSUIT WHICH WAS FILED IN BALTIMORE'S US DISTRICT COURT THAT HIS EFFORTS TO STAUNCH THE LOSSES WERE SABOTAGED BY BYZANTINE MANEUVERINGS DESIGNED TO DISCREDIT FORMER METALLGESELLSCHAFT CHAIRMAN HEINZ SCHIMMELBUSCH WHO WAS FIRED IN DECEMBER MR BENSON WAS DISMISSED IN FEBRUARY SPOKESMEN FOR METALLGESELLSCHAFT AND DEUTSCHE BANK COULDN'T BE REACHED FOR COMMENT ON FRIDAY AN MG SPOKESMAN IN NEW YORK TOLD THE DOW JONES INTERNATIONAL PETROLEUM REPORT THAT THE LAWSUIT IS TOTALLY WITHOUT MERIT BUT DECLINED TO ADDRESS DETAILS CONTAINED IN IT MR BENSON'S LAWSUIT PROFFERS AN ELABORATE 20PAGE DEFENSE OF HIS WIDELY CRITICIZED OIL TRADING AND HEDGING METHODS IT LIFTS THE VEIL OF SECRECY THAT HAS CLOAKED MG'S OIL MARKETING AND TRADING BUSINESS AND SPELLS OUT MANY OF THE DETAILS OF THE COMPANY'S TECHNIQUES THE COMPLAINT SAYS MG EXECUTIVES APPROACHED MR BENSON IN OCTOBER 1991 ABOUT HEADING THE FIRM'S BUSINESS MARKETING OIL AND GASOLINE PRODUCTS TO SERVICE STATIONS AND OTHER BUYERS THROUGHOUT THE US PART OF THE JOB THE SUIT SAYS WAS TO HEDGE THESE SUPPLY COMMITMENTS USING OILFUTURES CONTRACTS AND OTHER SOCALLED DERIVATIVES WHICH ARE INSTRUMENTS WHOSE VALUES ARE DERIVED FROM THE PRICES OF OTHER ASSETS IN THIS CASE OIL AND GASOLINE THE NEXT MONTH MR BENSON SAYS HE LEFT LOUIS DREYFUS ENERGY CORP WHERE HE PERFORMED SIMILAR DUTIES FOR MG BRINGING ABOUT 50 MEMBERS OF HIS DREYFUS STAFF WITH HIM FOR THE NEXT TWO YEARS MR BENSON AND HIS STAFF NEGOTIATED AN ARRAY OF AGREEMENTS TO SUPPLY CUSTOMERS WITH PETROLEUM PRODUCTS FOR UP TO 10 YEARS INTO THE FUTURE THE GROUP HEDGED THESE COMMITMENTS HE SAYS WITH DERIVATIVES BY SEPTEMBER 1993 MR BENSON SAYS MG CONTROLLED TOTAL DERIVATIVES POSITIONS REPRESENTING ABOUT 150 MILLION BARRELS OF OIL WORTH A TOTAL OF ABOUT 28 BILLION AT THENCURRENT PRICES AND IN NOVEMBER AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO REACH AN AGREEMENT LIMITING EXPORTS OIL PRICES PLUNGED SHARPLY DEVASTATING MG'S DERIVATIVES POSITIONS AMONG OTHER THINGS MR BENSON'S COMPLAINT ASSERTS THAT THE LOSSES ON THE DERIVATIVE POSITIONS WOULD HAVE BEEN OFFSET IN TIME BY PROFITS FROM MG'S OILMARKETING AGREEMENTS WITH ITS CUSTOMERS THE SUIT ALSO CLAIMS THAT MR BENSON DEVISED A STRATEGY TO USE OPTIONS CONTRACTS TO STEM THE HUNDREDS OF MILLIONS OF DOLLARS IN MARGIN CALLS THE COMPANY WAS PAYING TO MAINTAIN ITS DERIVATIVES POSITIONS THE COMPLAINT ASSERTS MOREOVER THAT METALLGESELLSCHAFT'S NEW MANAGERS INCLUDING DEUTSCHE BANK EXECUTIVE RONALDO SCHMITZ OPTED INSTEAD TO LIQUIDATE MG'S DERIVATIVES POSITIONS SO THAT PAPER LOSSES BECAME REAL AND PALPABLE PEOPLE FAMILIAR WITH MG'S TRADING ACTIVITIES EXPRESSED SKEPTICISM YESTERDAY ABOUT SOME OF MR BENSON'S CLAIMS FOR EXAMPLE MR BENSON SAYS IN HIS COMPLAINT THAT BUYING OIL PUT OPTIONS CONTRACTS IN EARLY DECEMBER WOULD HAVE ALLOWED THE COMPANY TO KEEP ITS DERIVATIVES HEDGES INTACT WITHOUT THE CASH DRAIN OTHERWISE REQUIRED BY MASSIVE MARGIN CALLS BUYING PUT OPTIONS CONFERS THE RIGHT TO SELL OIL FOR PREARRANGED PRICES AT SOME POINT IN THE FUTURE A PERSON FAMILIAR WITH THE COMPANY'S TRADING SAYS THAT WHILE BUYING PUT OPTIONS MIGHT HAVE HELPED TO PREVENT ADDITIONAL LOSSES IT WOULDN'T HAVE REVERSED LOSSES THAT HAD ALREADY OCCURRED THAT WOULD BE EQUIVALENT TO FREEZING A LOSS AT A CERTAIN POINT THE PERSON SAID IF YOU HAVE LOSING FUTURES POSITIONS AND PROFITABLE OPTIONS POSITIONS YOU DON'T GET TO TAKE OUT THAT MONEY WHAT SOME PEOPLE DO IS USE THE OPTIONS PROFIT AS COLLATERAL TO BORROW MONEY AGAINST BUT BY THAT FIRST WEEK OF DECEMBER THEY HAD ALREADY USED UP THEIR LINE OF CREDIT SO I DON'T KNOW WHO WAS GOING TO LOAN THEM MONEY ON THE BASIS OF THOSE PROFITABLE POSITIONS FINALLY MR BENSON ALLEGES THAT METALLGESELLSCHAFT'S NEW MANAGERS DEFAMED HIM IN AN ARRAY OF PUBLISHED COMMENTS BLAMING HIS OILTRADING OPERATION FOR THE GERMAN COMPANY'S NEARCOLLAPSE HE REQUESTS A JURY TRIAL AND SEEKS 250 MILLION IN COMPENSATORY DAMAGES AND 250 MILLION IN PUNITIVE DAMAGES FOR THE ALLEGED DEFAMATION AND THE SAME AMOUNTS FOR HIS ALLEGATIONS OF CIVIL CONSPIRACY DAVID BIRD CONTRIBUTED TO THIS ARTICLE 9403070091 940307 MARKETING & MEDIA ADVERTISING OCEAN SPRAY HOPES HIP CAMPAIGN WILL MAKE FOLKS CRAVE THE WAVE BY KEVIN GOLDMAN OCEAN SPRAY THE CRANBERRYJUICE KING IS FEELING SQUEEZED ALTHOUGH THE RUNAWAY LEADER IN THE GROWING JUICEDRINK CATEGORY OCEAN SPRAY'S LEAD IS BEING ERODED BY CHEAPER PRIVATELABEL JUICES AS WELL AS BRANDNAME BEVERAGES FROM SUCH COMPANIES AS VERYFINE PRODUCTS OCEAN SPRAY ALSO BELIEVES ITS DRINKS SUFFER FROM AN UNHIP IMAGE AT A TIME WHEN SELLING TO THE GRUNGE GENERATION AND BABY BOOMERS IS ESSENTIAL FOR SALES SUCCESS OCEAN SPRAY'S REMEDY A NEW MORE YOUTHFUL ADVERTISING CAMPAIGN WITH A MEDIA BUDGET OF MORE THAN 35 MILLION FOR THE FIRST TIME THE ENTIRE LINE OF OCEAN SPRAY JUICES IS BEING ADVERTISED TOGETHER UNDER THE SLOGAN CRAVE THE WAVE THE NEW CAMPAIGN FROM ROTANDO PARTNERS ADVERTISING IN STAMFORD CONN IS THE FIRST THAT LEVERAGES THE BRAND NAME IN A WAY THAT DEEMPHASIZES INDIVIDUAL DRINKS AND INSTEAD PROMINENTLY FEATURES THE FAMILIAR BLUEWAVE LOGO SOME OF THE EIGHT DIFFERENT ADS FEATURE A DRUM BEAT REMINISCENT OF ROCK GROUP QUEEN'S WE WILL ROCK YOU WE DEFINED OUR BUSINESS AS AN ALLFAMILY BUSINESS MEANING MOM WOULD BUY A LARGESIZE BOTTLE AND THE FAMILY WOULD DRINK IT SAYS KEVIN MURPHY SENIOR VICE PRESIDENT OF BUSINESS OPERATIONS AT OCEAN SPRAY CRANBERRIES IN MIDDLEBORO MASS THAT WORKED FOR US FOR DECADES BUT WE'RE NOW IN A MORE COMPLICATED COMPETITIVE ENVIRONMENT WE NEED TO DEFINE THE FAMILY DIFFERENTLY MOM STILL GOES SHOPPING SO DO THE KIDS USUALLY ON THE RUN OCEAN SPRAY SAYS MR MURPHY HAS TO COMMUNICATE TO THE CONSUMERS THAT THE BRAND IS RELEVANT IT WANTS TO INCREASE ITS SHARE IN THE JUICEDRINK CATEGORY WHICH GREW 25 LAST YEAR TO AN ESTIMATED 41 BILLION ACCORDING TO BEVERAGE MARKETING AC NIELSEN SUPERMARKET SALES DATA SHOW THAT OCEAN SPRAY HAD A COMMANDING 658 MARKET SHARE FOR THE 52WEEK PERIOD ENDED SEPT 11 1993 A DROP OF 33 PERCENTAGE POINTS FROM THE YEAREARLIER PERIOD IN COMPARISON TROPICANA TWISTER'S SHARE ROSE 17 PERCENTAGE POINTS ALTHOUGH ITS SHARE IS STILL ONLY 69 OCEAN SPRAY ISN'T COMPETING JUST WITH OTHERS IN THE FRUITDRINK CATEGORY DEFINED AS BEVERAGES THAT AREN'T 100 JUICE BUT ALSO WITH BRANDS IN THE 100 FRUITJUICE ARENA COMPANIES MAY DIFFERENTIATE BETWEEN THE TWO BUT CONSUMERS MAY NOT SAYS HELLEN BERRY VICE PRESIDENT OF MARKET RESEARCH AT BEVERAGE MARKETING BEVERAGE GIANT COCACOLA ENTERED THE FRAY LAST WEEK INTRODUCING FRUITOPIA A NONCARBONATED DRINK CONTAINING 10 TO 25 FRUIT JUICE ON TOP OF THAT OTHER SOCALLED ALTERNATIVE BEVERAGES INCLUDING FLAVORED TEAS SPARKLING WATERS AND CLEAR COLAS ARE VYING FOR A YOUNG AUDIENCE EVERYTHING IS OCEAN SPRAY'S COMPETITION SAYS JONATHAN IAFELIECE VICE CHAIRMAN AND CHIEF CREATIVE OFFICER AT ROTANDO PARTNERS OCEAN SPRAY'S MOST RECENT ADS WERE A TAD GOOFY AND IT'S DOUBTFUL THEY APPEALED TO YOUNG PEOPLE ONE FEATURED A GENTLEMAN WHO RESEMBLED HERB THE NERD THE ILLFATED BURGER KING AD CHARACTER FROM THE LATE 1980S WEAVING ACROSS THE SCREEN HOLDING A TINY RED CRANBERRY NO MORE NEW ADS ARE SLICK AND GEARED TO DIFFERENT DEMOGRAPHICS INCLUDING GENERATION X AND YUPPIES COMMERCIALS INCLUDE JOGGERS SWEATING MILITARY PERSONNEL A YOUNG PROFESSIONAL WOMAN GABBING ON A PAY PHONE WHILE TRYING TO REACH AN OCEAN SPRAY DRINK ON A NEARBY TABLE KIDS PLAYING SOCCER AND AN OVERHEATED TOPLESS MALE CONSTRUCTION WORKER A DIFFERENT ACTOR FROM THE MODEL IN A NEW DIET COKE AD OCEAN SPRAY ALSO WANTS TO GET THE WORD OUT THAT IT IS AVAILABLE IN SINGLESERVE BOTTLES THAT ARE SOLD IN CONVENIENCE STORES A POPULAR VENUE FOR TEENAGERS OCEAN SPRAY'S DISTRIBUTION SYSTEM VASTLY IMPROVED WHEN IT SIGNED AN AGREEMENT WITH PEPSICO IN LATE 1991 A SERIES OF ADS SHOWS A PARADE OF INDIVIDUALS RANGING FROM A YOUNG BUSINESSMAN TO TEENAGERS POPPING INTO A CONVENIENCE STORE THE CAMERA'S POINT OF VIEW IS FROM THE COOLER LOOKING OUT INTO THE STORE AS THE OCEAN SPRAY IS SNAPPED UP THESE COMMERCIALS SHOW OCEAN SPRAY WITH AN ATTITUDE SAYS MR MURPHY SOME OF THE ADS WILL BE PLACED ON EQUALLY HIP SHOWS INCLUDING LATE SHOW WITH DAVID LETTERMAN ON CBS AND THROUGHOUT THE SCHEDULE ON MTV WE NEVER SPENT A LOT OF TIME ADVERTISING TO CONSUMERS UNDER 25 YEARS OLD MR MURPHY SAYS BUT FOR US TO GROW WE HAVE TO CHANGE THAT MILLER BREWING CO A UNIT OF PHILIP MORRIS COS HAS UNEXPECTEDLY THROWN THE LITE ICE ACCOUNT INTO REVIEW INVITING ALL FOUR AGENCIES ON ITS ROSTER TO PITCH THE BUSINESS LITTLE MORE THAN A MONTH AFTER ASSIGNING IT TO LEO BURNETT CHICAGO ESTIMATED BILLINGS ARE 20 MILLION TO 25 MILLION ACCORDING TO INDUSTRY EXECUTIVES MILLER'S THREE OTHER AGENCIES SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WPP GROUP'S J WALTER THOMPSON AND YOUNG & RUBICAM ARE EXPECTED TO PRESENT IDEAS FOR A NEW CAMPAIGN NEXT WEEK EXECUTIVES SAID A MILLER SPOKESMAN SAID WE WORK WITH ALL OF OUR AGENCIES TO MOVE OUR BUSINESS FORWARD DECLINING TO COMMENT FURTHER A SPOKESMAN FOR LEO BURNETT WOULDN'T COMMENT THE REVIEW CAME IN THE SAME WEEK THAT MILLER REVISED ADVERTISING FOR ANOTHER ICE BEER MOLSON ICE WHICH HAD PROMPTED AN INVESTIGATION BY FEDERAL REGULATORS THE MOLSON ICE ADS CREATED BY YOUNG & RUBICAM HAD CONSPICUOUSLY FEATURED A CLOSEUP OF THE MOLSON ICE LABEL AND ITS ALCOHOL VOLUME WHICH IS HIGHER THAN REGULAR BEER THE MILLER SPOKESMAN SAID PRINT ADS FOR LITE ICE WHICH HAD ALSO CONTAINED A LABEL CLOSEUP WERE SIMILARLY REVISED THE SNAFU IS THE LATEST TROUBLE FOR BURNETT AND MILLER AFTER WINNING THE BIG MILLER LITE ACCOUNT BURNETT STRUGGLED FOR CLOSE TO A YEAR TO COME UP WITH A CAMPAIGN THAT PLEASED THE CLIENT NOW THE AGENCY MUST REPEAT THAT FEAT ON LITE ICE LESS THAN TWO MONTHS AFTER WINNING THE BUSINESS AND WITH ITS WORK ON THE AIR LESS THAN TWO WEEKS BURNETT IS BELIEVED TO HAVE SOLD SEVERAL LITE ICE SPOTS TO MILLER THE ONE THAT MADE IT ON THE AIR BROUGHT BACK BOB UECKER A VETERAN PITCHMAN FOR LITE BEER FROM THE DAYS OF THE OLD TASTES GREAT LESS FILLING CAMPAIGN THE SPOT ALSO INTRODUCED A NEW SPOKESMAN THE GENERATION X COMEDIAN DANTE WHO BURSTS THROUGH A PAPER WALL AND STICKS HIS FACE IN THE CAMERA SAYING NEW BEER NEW RULES HOW YA DOIN' MUCH IS RIDING ON THE LITE ICE ADS MILLER IS COUNTING ON THE LINE EXTENSION TO PUMP UP ITS AILING LITE BRAND WHOSE SALES DECLINED 36 LAST YEAR ACCORDING TO THE NEWSLETTER BEER MARKETERS' INSIGHT NEW TELEVISION ADS FOR CNBC A UNIT OF GENERAL ELECTRIC CO RELY ON HUMOR TO LURE VIEWERS TO THE BUSINESS AND TALK CABLE NETWORK TWO SPOTS PRODUCED BY CNBC'S NEW AD AGENCY KIRSHENBAUM & BOND NEW YORK POKE FUN AT OTHER TELEVISION FARE IN ONE A VAPID WOMAN ATTENDING A COCKTAIL PARTY CRASHES INTO A CONVERSATION ON GUN CONTROL SHE SAYS SHE THOUGHT THAT AFTER THE SHOOTING OF JR A FICTIONAL CHARACTER ON THE OLD CBS INC SERIES DALLAS HANDGUN CONTROL WOULD BE STRICT IN ANOTHER AD A YUPPIE MAKES A SERIOUS RECOMMENDATION THAT SOMEONE SHOULD HIRE MATLOCK A FICTIONAL ATTORNEY ON THE CAPITAL CITIES/ABC INC NETWORK THE ADS ARE SCHEDULED TO RUN ON CABLE NETWORKS ARTS & ENTERTAINMENT AND DISCOVERY AND MAY APPEAR ON THE NBC NETWORK THE COMMERCIALS USE THE TAG LINE WHEN YOU'RE TIRED OF TUNING OUT TUNE IN WHY DID CNBC'S NEW TELEVISION ADS DELIBERATELY EXCLUDE THE NETWORK'S ROSTER OF TALK SHOW HOSTS INCLUDING TOM SNYDER AND GERALDO RIVERA LEWIS GOLDMAN CNBC'S DIRECTOR OF ADVERTISING AND PROMOTION SAYS WE WANTED TO CREATE AN OVERALL POSITIONING FOR THE NETWORK IF WE THROW IN THE PERSONALITIES IT WOULD DISTRACT FROM THE MESSAGE THAT CNBC IS INTELLIGENT TV ACCOUNT KONAMI AMERICA TAPPED GREY ADVERTISING NEW YORK TO CREATE ADS FOR ITS ESTIMATED 5 MILLION VIDEO GAME ACCOUNT THE AGENCY SAID INCUMBENT MICHAEL MEYERS & ASSOCIATES CHICAGO WILL REMAIN ACTIVE ON THE BUSINESS WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON NAMED JONATHAN B CRANIN 39 YEARS OLD TO THE POST OF EXECUTIVE VICE PRESIDENT AND DEPUTY CREATIVE DIRECTOR MR CRANIN WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT WELLS RICH GREENE BDDP 9403070090 940307 REVIEW & OUTLOOK EDITORIAL HONG KONG'S BLEEDING HEARTS ONE OF THE WORLD'S TRULY GREAT WELFARE STATES RELEASED ITS ANNUAL BUDGET THIS WEEK HONG KONG'S NEW SPENDING PACKAGE WAS CHOCKABLOCK WITH INITIATIVES AIMED AT HELPING THE PEOPLE UNDER ITS CARE ACHIEVE MORE COMFORTABLE SECURE LIVES FOR INSTANCE THERE WAS A NEW MAKEWORK PROGRAM IN THE FORM OF A CORPORATE TAX CUT BLEEDING HEARTS FROM FINANCIAL SECRETARY SIR HAMISH MACLEOD ON DOWN SAY THE IDEA IS TO LEAVE COMPANIES MORE EARNINGS TO DISTRIBUTE TO SHAREHOLDERS OR REINVEST WITH BUSINESSES ATTRACTED BY THE IDEA OF KEEPING MORE PROFITS THEY'LL EXPAND OUTPUT AND HIRE MORE WORKERS GOVERNMENTAL SOLICITUDE WAS EVIDENT ON THE SUPPLY SIDE OF THE LABOR MARKET AS WELL SOME 420000 WORKING STIFFS WERE DROPPED FROM HONG KONG'S INCOMETAX ROLLS ALTOGETHER AND ANOTHER ONE MILLION WILL SEE THEIR TAXES CHOPPED SUBSTANTIALLY THESE PEOPLE CAN ALWAYS BE HIT UP LATER IN LIFE AFTER THEY'VE CLIMBED THE JOB LADDER A BIT LIKE ANY GOOD MEMBERS OF THE BREED HONG KONG'S WELFARE ENGINEERS WOULDN'T LET A BUDGET GO BY WITHOUT TRYING TO MEET SOME UNMET NEEDS THAT PHRASE IS FASHIONABLE AMONG WESTERN LIBERALS WITH BIG TAXANDSPEND PLANS TO PROMOTE IN HONG KONG'S CASE THE BUDGET PROPOSES A NEW WELFARE PROGRAM FOR THE ELDERLY IT'S A TAX CUT TOO THIS ONE AIMED AT FAMILIES WITH ONE OR MORE GRANDPARENTS TO SUPPORT THERE ARE ALSO NEW TAX CUTS FOR MARRIED OR SINGLE PEOPLE WITH DEPENDENT CHILDREN TAKEN TOGETHER THE CHANGES AIM TO HELP OUT WHAT HONG KONG FOLKS CALL THE SANDWICH CLASS THESE ARE YOUNG ADULTS IN TRANSITION FROM LIVING UNDER THEIR PARENTS' ROOF TO HAVING DEPENDENTS OF THEIR OWN THERE'S BEEN TALK IN HONG KONG OF ADOPTING A US STYLE SOCIAL SECURITY AND THE COLONY DOES MAKE PUBLIC MONEY DIRECTLY AVAILABLE TO PEOPLE IT CONSIDERS NEEDY BUT IT DOESN'T TREAT THE PRIVATE SECTOR AS A MERE ADJUNCT TO THE GOVERNMENT ALLOWED TO KEEP WHATEVER CRUMBS ARE LEFT AFTER THE BUREAUCRATS ARE SATIATED WORK AND FAMILY ARE PROMOTED AS THE REAL GUARANTORS OF SOCIAL WELFARE THAT'S IN HEALTHY CONTRAST TO MANY WESTERN COUNTRIES AT A SIMILAR STAGE OF DEVELOPMENT IN THE US THE NOTION THAT THE BEST WELFARE POLICY MIGHT BE ONE THAT LIGHTENS THE BURDEN OF GOVERNMENT IS DERIDED AS TRICKLEDOWN ECONOMICS WELFARE IS WHAT COMES TO PEOPLE IN THE FORM OF GOVERNMENT PROGRAMS AND THE DOLE THE SEGMENT OF AMERICA'S POPULATION THAT HAS BEEN THE MOST INTENSIVE FOCUS OF THIS THEORY HAS EVEN BEEN AWARDED A TITLE IT'S NOW CALLED A PERMANENT UNDERCLASS EVERY INDICATOR OF SOCIAL MISERY INFANT MORTALITY LIFE EXPECTANCY ILLITERACY ILLEGITIMACY HAS BEEN HEADING IN THE WRONG DIRECTION EVER SINCE THESE FOLKS BECAME OBJECTS OF OFFICIAL COMPASSION 30 YEARS AGO SOME WILL DISMISS THE LESSONS OF HONG KONG'S NEW BUDGET BY NOTING THAT THE COLONY IS RUNNING A 2 BILLION SURPLUS THIS YEAR BUT IT'S NO ACCIDENT THAT A GOVERNMENT THAT PIGGYBACKS SO LIGHTLY ON THE PRIVATE SECTOR ENDS UP WITH COFFERS OVERFLOWING IT'S ALSO WORTH NOTING THAT IN NEWLY DEMOCRATIZING HONG KONG THE UNIVERSAL COMPLAINT OF THE PARTY POLITICIANS FROM THE PROBEIJING FACTION TO MARTIN LEE'S UNITED DEMOCRATS WAS THAT TAXES WEREN'T CUT ENOUGH HONG KONG'S ECONOMIC SUCCESS IS INTERNATIONALLY ACCLAIMED ITS POLITICIANS SEEM TO THINK KEEPING DOWN TAX LEVELS HAS SOMETHING TO DO WITH THAT 9403070089 940307 WORLD MARKETS STOCKS RISE SHARPLY IN TOKYO AND IN EUROPE BUT FEARS OF VOLATILITY KEEP DEALINGS CAUTIOUS A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO SCORED A 18 GAIN FRIDAY IN IMPROVED TURNOVER FROM A BUYING SPREE ON THE OUTLOOK FOR A JAPANESE ECONOMIC RECOVERY SPURRED BY HOPES FOR RESOLUTION OF A TRADE DISPUTE WITH THE US EUROPEAN BOURSES ENJOYED A BREATHER FROM LAST WEEK'S INSTABILITY IN THE FALLOUT FROM BOND MARKETS' BEATING AND GLUMNESS THAT GLOBAL INTEREST RATES COULD BE HEADING UP LONDON EQUITIES REBOUNDED LIFTED BY STRENGTH IN BOND AND STOCKINDEX FUTURES MARKETS AND A POSITIVE START ON WALL STREET FRANKFURT SHARES CLIMBED 11 BUT TRADING CONTINUED TO BE NERVOUS AND FEW INSTITUTIONAL INVESTORS JUMPED IN MANY ASIAN AND PACIFIC BOURSES EVEN THOSE THAT MUSCLED PRICES UP WERE STILL PREOCCUPIED BY INTEREST RATES AND SOME MARKETS WERE HAMMERED BY JITTERS ABOUT RATE BOOSTS VOLATILITY FOR EQUITIES AND WEAKNESS FOR BONDS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11504 UP 017 REFLECTING INCREASES IN MARKETS IN EUROPE AND THE AMERICAS AND A DROP IN ASIAPACIFIC MARKETS BROADCASTING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14979 UP 254 OR 173 WITH TELECOMMUNICATIONS OF THE US POSTING A 743 GAIN IN ITS LOCAL CURRENCY CONSUMERSERVICES STOCKS TRAILED AT 13515 DOWN 181 OR 132 WITH ACTAVA GROUP OF THE US SLIDING 536 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 13891 POINTS THURSDAY SURGED 36014 TO 1996600 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 410 MILLION SHARES UP MARKEDLY FROM 294 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 790234 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 1361 POINTS THURSDAY BOUNCED BACK 1996 OR 12 TO 162229 IN TRADING LATE MONDAY MORNING THE NIKKEI WAS UP 19342 POINTS AT 2015942 THE US DECISION THURSDAY TO REVIVE ITS SUPER 301 TRADEENFORCEMENT MECHANISM HAD A POSITIVE EFFECT ON THE TOKYO MARKET AS EXPECTED JAPANESE MARKETOPENING MEASURES TO HEAD OFF US TRADE SANCTIONS COULD SPUR DEMAND IN JAPAN HELPING BOTH THE ECONOMY AND CORPORATE BOTTOM LINES US RULES WOULDN'T ALLOW IMPOSITION OF SANCTIONS ON JAPAN UNTIL OCT 21 STOCKS ALSO BENEFITED FROM THE JAPANESE YEN'S WEAKENING IN CURRENCY MARKETS EASING PRESSURE ON EXPORTERS' RETURNS FROM ABROAD BLUECHIP EXPORTERS AND FINANCIAL CONCERNS WERE THE TOP PERFORMERS FRIDAY THE MARKET WAS KICKED INTO HIGH GEAR BY STRONG PURCHASING BY 16 NEW JAPANESE INVESTMENT TRUST FUNDS WITH 300 BILLION YEN 289 BILLION IN BUYING POWER AND PUBLIC PENSION FUNDS ALSO BOUGHT POSITIONS OVERALL STOCK INVESTORS WERE UPBEAT BECAUSE OF THE HOPEDFOR SUPER 301 OUTCOME THE YEN'S RETREAT AGAINST THE US DOLLAR AND THE JAPANESE BOND MARKET'S SIGNS OF BOTTOMING IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 315 POINTS OR ALMOST 1 TO 32780 JUST FRACTIONALLY OFF THE INTRADAY HIGH THE FT 30STOCK INDEX ROSE 237 POINTS TO 25639 BUT VOLUME WAS A WEAK 581 MILLION SHARES COMPARED WITH 6773 MILLION SHARES IN THE PREVIOUS SESSION WITH ABOUT 15 OF THE COMPANIES IN THE 100STOCK INDEX TO REPORT EARNINGS THIS WEEK MANY PLAYERS KEPT TO THE SIDELINES FRIDAY US JOBS DATA SHOWING A MUCH LARGERTHANEXPECTED JUMP IN NONFARM PAYROLLS INITIALLY PUSHED BONDS LOWER IN BRITAIN BUT THE MOOD IN THE STOCK MARKET LIGHTENED AS SENTIMENT ABOUT GLOBAL INTEREST RATES BECAME MORE POSITIVE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 2219 POINTS TO 206009 FOR A SECOND DAY OF GAINS BUT INVESTORS WERE STILL NERVOUS ABOUT RECENT VOLATILITY AND POISED FOR ANY REVERSAL WITHOUT ANY FUNDAMENTALS TO PUSH THE MARKET MOST DEALINGS WERE TECHNICALLY DRIVEN SUCH AS BY BASKET TRADING IN PARIS STOCKS MOVED UP 11 AS THE MARKET SETTLED DOWN FROM PERTURBING ECONOMIC DATA FROM THE US AND GERMANY EARLIER LAST WEEK THAT SIGNALED HIGHER INFLATION AND INTERESTRATE INCREASES EQUITIES ALSO GOT A BREATHER AS THE FRENCH BOND MARKET RECOVERED ITS EQUILIBRIUM IN AMSTERDAM SHARES ENDED HIGHER AFTER ACTIVE TRADING BOOSTED BY BUYING BY US INVESTORS PROMPTED BY FAVORABLE DUTCH CORPORATE EARNINGS IN MILAN EQUITIES ROSE EXTENDING THE BOURSE'S RECOVERY TO A SECOND DAY DESPITE CAUTIOUS TRADING IN MADRID PRICES JUMPED 16 LIFTED BY THE SPANISH BOND MARKET'S SOLID RECOVERY AND FIRMER EUROPEAN BOURSES IN STOCKHOLM SHARES ROSE CONTINUING THEIR REBOUND IN HEAVY ACTIVITY LIKEWISE IN ZURICH THE MARKET JUMPED 22 AS BARGAIN HUNTERS EXTENDED A RECOVERY THAT RECOUPED MOST OF LAST WEEK'S EARLIER LOSSES DEMAND WAS STIMULATED BY TECHNICAL FACTORS AND POSITIVE SWISS ECONOMIC PROSPECTS AND ALL MAJOR SECTORS POSTED STRONG GAINS IN BRUSSELS STOCKS CHALKED UP SOLID GAINS IN A TECHNICAL REBOUND FROM STEEP LOSSES EARLIER LAST WEEK IN SYDNEY SHARES SLUMPED 16 TAKING THE MAIN INDEX DOWN TO ITS LOWEST LEVEL SINCE LAST DEC 24 BECAUSE OF A WEAK BOND MARKET A DROP IN STOCK FUTURES AND UNSETTLED MARKETS OVERSEAS THE MARKET ALSO WAS DRIVEN LOWER BY NEWS OF A SHARP RISE IN AUSTRALIAN INVENTORIES FOR THE QUARTER ENDED DEC 31 AND INCREASES IN ECONOMIC GROWTH ESTIMATES WHICH INCREASED WORRIES THAT INTEREST RATES WILL RISE AND HURT CORPORATE PROFIT GROWTH BUT IN HONG KONG STOCKS ADVANCED 12 IN A TECHNICAL REBOUND AFTER A RECENT BEAR RUN THOUGH TURNOVER WAS LOW THINNING THE RANKS OF SELLERS AS THE MARKET AWAITED US INFLATION DATA FOR CLUES ON THE DIRECTION OF INTEREST RATES IN TAIPEI PRICES RALLIED 39 TO THEIR HIGHEST LEVEL IN MORE THAN SIX WEEKS EXTENDING AN UPTURN THAT BEGAN THE PREVIOUS DAY DEALINGS SURGED AFTER TAIWAN'S CENTRAL BANK SAID LIMITS ON FOREIGN INVESTMENT IN THE STOCK MARKET COULD BE RELAXED SOON THE FINANCIAL SECTOR LED THE BROAD MARKET'S CLIMB AS BARGAIN HUNTERS BOUGHT UNDERPRICED BANKING ISSUES IN MANILA PRICES PLUMMETED 34 IN BUSY TRADING CONTINUING THE SELLOFF BY INVESTORS ANXIOUS ABOUT WEAKNESS OF OVERSEAS MARKETS IN SEOUL EQUITIES FELL AMID WORSENING LIQUIDITY AND A CASH DRAIN FROM THE MARKET INVESTORS LOST CONFIDENCE IN A PERCEIVED SUPPORT LEVEL ON THE BENCHMARK INDEX AND RUSHED TO SELL THOUGH LATE BUYING BY INSTITUTIONS BOOSTED PRICES FROM LOWS IN WELLINGTON SHARES TUMBLED 16 PRESSURED BY VOLATILITY IN WORLD FINANCIAL MARKETS AS JUMPY INVESTORS SOUGHT A CLEARER PICTURE OF US INTEREST RATES BUT IN BANGKOK STOCKS CLIMBED 14 AS MOST PLAYERS REGAINED CONFIDENCE IN THE MARKET THOUGH VOLUME REMAINED THIN 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 9403070088 940307 BUSINESS BRIEF WR GRACE AGREES TO ACQUIRE PROVIDER OF THERAPY SERVICES BOCA RATON FLA WR GRACE & CO SAID IT AGREED DEFINITIVELY TO ACQUIRE HOME NUTRITIONAL SERVICES INC A MARIETTA GA PROVIDER OF HOME INFUSION THERAPY SERVICES FOR 785 A SHARE OR 903 MILLION A SPOKESMAN FOR GRACE SAID THE ACQUISITION WILL COST THE COMPANY ABOUT 110 MILLION INCLUDING FEES IN NASDAQ STOCK MARKET TRADING FRIDAY HOME NUTRITIONAL SHARES CLOSED AT 775 UP 1 HOME NUTRITIONAL WHICH HAD 1993 SALES OF 132 MILLION WILL BECOME PART OF GRACE'S NMC HOMECARE UNIT THE THIRDLARGEST NATIONAL PROVIDER OF HOME INFUSION SERVICES GRACE A SPECIALTY CHEMICAL MAKER SAID IT WILL BEGIN A TENDER OFFER BY THURSDAY FOR ALL OF HOME NUTRITIONAL'S 115 MILLION SHARES OUTSTANDING THE OFFER IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING THE TENDER OF A MAJORITY OF THE HOME NUTRITIONAL'S OUTSTANDING SHARES ON A FULLY DILUTED BASIS SHARES NOT TENDERED WILL BE ACQUIRED FOR THE SAME 785 PRICE IN CONNECTION WITH THE PACT HEALTHDYNE INC WHICH OWNS A 68 STAKE IN HOME NUTRITIONAL HAS AGREED TO TENDER ITS SHARES TO GRACE AS A RESULT OF THE TRANSACTION HEALTHDYNE WON'T PROCEED WITH ITS PLANS FOR A PARTIAL EXCHANGE OFFER FOR 2150000 SHARES OF HOME NUTRITIONAL STOCK HOME NUTRITIONAL'S BOARD HAS APPROVED THE OFFER AND RECOMMENDED THAT STOCKHOLDERS TENDER THEIR SHARES 9403070087 940307 LETTERS TO THE EDITOR A SOCIALIST IDEALISM THAT'S BLIND TO REALITY I WAS SADDENED AND OUTRAGED TO READ OF BRUCE MARK'S SUCCESSFUL EXTORTION OF 140 MILLION FROM FLEET FINANCIAL GROUP BANKING ON PUBLICITY PAGE ONE FEB 11 LIBERALS SUCH AS MR MARKS HAVE EMPLOYED RACEBAITING WITH THE HELP OF SYMPATHETIC MEDIA OUTLETS TO EXTEND INVESTMENT TO A SECTOR WHERE THE MARKET HAS CLEARLY IDENTIFIED INVESTMENT BEST NOT GO AS WITH THE CENTRALIZED SOVIET ECONOMY TAX DOLLARS AND NOW EXTORTED PRIVATE DOLLARS ARE BEING SENT TO PROP UP A FAILED ENTERPRISE MINORITYOWNED INNERCITY HOUSING MR MARKS'S SOCIALIST IDEALISM BLINDS HIM TO A FACT YOUR READERS SHOULD KNOW WHEN FAILURE OCCURS IN A FREE MARKET IT OCCURS FOR A REASON AND LIKE THE TIDE IT CANNOT BE HELD BACK IN THE THREE DECADES AFTER WORLD WAR II LOWINCOME MINORITY RESIDENTS WERE BEQUEATHED INNERCITY HOUSING THE CRUSHINGLY EXPENSIVE MAINTENANCE OF OLDER BUILDINGS COMBINED WITH THE HIGH COST OF LIVING IN URBAN NEIGHBORHOODS CREATED A GROSS MISMATCH OF INCOME AND LIVING COSTS UNDER FREE CIRCUMSTANCES THIS WOULD HAVE RESULTED IN RAPID DECLINE POPULATION MOVEMENT AND BOTTOMING OUT FOLLOWED BY REVITALIZATION AND RENEWAL INSTEAD OF PERMITTING FAILURE A BATTERY OF POLITICAL INTERESTS HAVE SOUGHT TO PRESERVE THE RACIAL AND ECONOMIC HOMOGENEITY OF INNERCITY NEIGHBORHOODS GOVERNMENT PROGRAMS INCLUDING RENT CONTROL HOUSING SUBSIDIES SUCH AS HUD'S SECTION 8 AND WORST OF ALL PUBLIC HOUSING HAVE ATTEMPTED TO STOP THE DECLINE OF INNERCITY NEIGHBORHOODS THE INTERESTS WHO SUPPORTED THESE PROGRAMS ARE NOT ALL OF THE SAME STRIPE BUT THEY HAVE ONE THING IN COMMON THEY ARE SELFINTERESTED THESE POLITICAL INTERESTS RANGE FROM SELFCONGRATULATORY LIBERALS OF TONY SUBURBS WHO COULD BE CONSTRUED AS WELLINTENDED TO INNERCITY POLITICIANS WHOSE FRIENDS AND SUPPORTERS ARE FREQUENTLY ON THE RECEIVING END OF MILLIONS IN HOUSING SUBSIDIES OF ONE THING THERE SHOULD BE NO DOUBT THE PURVEYORS OF HOUSING AID HAVE FARED WELL WHILE THE INTENDED RECIPIENTS OF HOUSING AID HAVE BEEN DECIMATED BY SOCIAL DISINTEGRATION I DON'T THINK THERE IS ANY HOPE FOR THE MINDS OF URBAN TERRORISTS SUCH AS MR MARKS BUT IT IS TIME THAT THOUGHTFUL OBSERVERS AND VOTERS REALIZE THAT HOUSING AID AIMED AT AMERICA'S URBAN POOR IS AIDING AND ABETTING THE DESTRUCTION OF URBAN NEIGHBORHOODS MEANWHILE MANY POLITICIANS NONPROFIT DEVELOPMENT ORGANIZATIONS AND GADFLIES SUCH AS BRUCE MARKS MAKE OFF WITH MILLIONS THAT COULD HAVE CONTRIBUTED TO REAL PROSPECTS FOR PERSONAL AND ECONOMIC GROWTH 9403070086 940307 LETTERS TO THE EDITOR MOTOROLA DENIED MARKET ACCESS SCOTT LATHAM'S MARCH 3 EDITORIALPAGE ARTICLE POOR POOR MOTOROLA IS REMARKABLE FOR ITS DOCTRINAIRE MISINTERPRETATION OF THE SITUATION FACED BY OUR COMPANY IN THE CELLULAR PHONE MARKET IN JAPAN UNFORTUNATELY MR LATHAM IS WRONG ON ALMOST EVERY COUNT ON FEB 22 THE JOURNAL'S CORRESPONDENT IN TOKYO CORRECTLY SUMMARIZED OUR SITUATION HE WROTE MOTOROLA HAS LONG TUSSLED WITH THE JAPANESE GOVERNMENT OVER THE DENSELY POPULATED TOKYONAGOYA CELLULAR CORRIDOR ALTHOUGH THE COMPANY GAINED A NEARLY 50 MARKET SHARE IN OTHER AREAS OF JAPAN IT WASN'T GIVEN THE OPPORTUNITY TO SELL ITS TACS CELLULAR EQUIPMENT IN THE TOKYONAGOYA AREA UNTIL 1989 WHEN UNDER US TRADE PRESSURE JAPAN PAIRED MOTOROLA WITH CELLULAR OPERATOR IDO CORP SINCE THEN HOWEVER MOTOROLA HAS CHARGED THAT IDO HAS PUT MOST OF ITS EFFORT INTO A RIVAL SYSTEM DESIGNED BY NIPPON TELEGRAPH & TELEPHONE CORP THE USTYPE SYSTEM IN TOKYONAGOYA HAS CAPTURED ONLY ABOUT 1 OF THE CELLULAR PHONE MARKET OR A MERE 12900 PHONES IN AN AREA WHERE 60 MILLION PEOPLE LIVE AND WORK OUR EXPERIENCE THROUGHOUT THE REST OF THE WORLD SHOWS THAT IDO SHOULD HAVE BEEN ABLE TO BUILD A PROFITABLE BUSINESS WITH AS MANY AS 450000 CELLULAR CUSTOMERS IF IT HAD FULFILLED THE PROMISE TO FULLY USE THE 5 MHZ OF SPECTRUM ALLOCATED FOR THIS PURPOSE AS PROMISED IN THE 1989 USJAPAN CELLULAR ACCORD PUT AS PLAINLY AS POSSIBLE THE ISSUE IS MARKET ACCESS THE PROBLEM IS A SERIES OF ACTIONS FOLLOWED BY INACTION BY THE GOVERNMENT OF JAPAN THE RESULT IS SYSTEMATIC DENIAL OF ACCESS TO JAPAN'S MOST HEAVILY POPULATED MARKET FOR FOREIGN COMPANIES CLEARLY WE WOULD PREFER TO GAIN MARKET ACCESS THROUGH PURELY COMMERCIAL MEANS THAT HAS PROVEN IMPOSSIBLE MOTOROLA HAS NEITHER SOUGHT NOR OBTAINED A SPECIAL POSITION THROUGH US GOVERNMENT INTERVENTION WE HAVE SIMPLY ASKED FOR AN EQUAL OPPORTUNITY AT THE STARTING GATE 9403070085 940307 ECONOMY ECONOMY SLOWS FROM HOT PACE JOBS DATA SHOW HEALTHY GROWTH STILL SEEN FOR 1ST QUARTER BARRING FURTHER HARSH WEATHER BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S EMPLOYMENT REPORT FOR FEBRUARY SHOWS THAT THE MOMENTUM OF THE US ECONOMY IS SLOWING FROM LAST YEAR'S SIZZLING PACE PARTLY BECAUSE OF BAD WEATHER BUT BARRING MORE BAD WEATHER ECONOMIC FORECASTERS SAID THE ECONOMY STILL SEEMS TO BE EXPANDING AT A HEALTHY 3 ANNUAL RATE OR BETTER IN THE FIRST QUARTER SUPERFICIALLY THE NEWS FROM THE LABOR DEPARTMENT ON FRIDAY WAS IMPRESSIVE EMPLOYERS ADDED 217000 WORKERS IN FEBRUARY MORE THAN ANY MONTH SINCE JULY THE UNEMPLOYMENT RATE EDGED DOWN TO 65 OF THE WORK FORCE FROM 67 IN JANUARY EMPLOYMENT REBOUNDED FROM JANUARY'S WEATHERRELATED WEAKNESS ALTHOUGH THE IMPACT OF THIS WINTER'S SEVERE WEATHER WAS STILL APPARENT IN SEVERAL INDUSTRIES KATHARINE ABRAHAM COMMISSIONER OF LABOR STATISTICS SAID BUT THE GOVERNMENT ALSO REVISED ESTIMATES OF JOB GROWTH IN THE TWO PREVIOUS MONTHS IT NOW SAYS THAT EMPLOYERS REDUCED PAYROLLS BY 2000 IN JANUARY RATHER THAN ADDING 62000 AS REPORTED PREVIOUSLY EMPLOYERS ADDED AN AVERAGE OF 148000 WORKERS IN EACH OF THE PAST THREE MONTHS LESS THAN THE AVERAGE OF 170000 FOR 1993 AND THE TOTAL NUMBER OF HOURS WORKED LAST MONTH FELL 13 SUGGESTING THAT THE OUTPUT OF THE NATION'S FACTORIES AND PERSONAL INCOME WERE WEAK IN FEBRUARY BUT ECONOMISTS SAID THAT PROBABLY REFLECTS BAD WEATHER RATHER THAN A WORRISOME TREND OTHER ECONOMIC INDICATORS PARTICULARLY RETAIL SALES AUTO AND TRUCK SALES AND ORDERS FOR FACTORY GOODS CONTINUE TO BE STRONG AND IN AN UPBEAT REPORT THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING ECONOMIC INDICATORS ROSE AN ADDITIONAL 03 IN JANUARY THE SIXTH STRAIGHT MONTHLY INCREASE IT ROSE 07 IN DECEMBER THE MAJOR CONTRIBUTOR TO THE INCREASE WAS A PICKUP IN CONSUMER EXPECTATIONS ONLY BUILDING PERMITS AND CLAIMS FOR UNEMPLOYMENT BENEFITS WERE NEGATIVE THE EMPLOYMENT REPORT DIDN'T ALTER THE CURRENT ASSESSMENT OF THE ECONOMY AMONG PRIVATE ECONOMISTS ADMINISTRATION OFFICIALS OR FINANCIAL MARKETS THE ECONOMY IS FINE AND ON TRACK FOR 3 TO 35 CURRENTQUARTER GROWTH SAID PAUL MCCULLEY OF UBS SECURITIES INC IN NEW YORK ALTHOUGH MOST ECONOMISTS PREDICT A STRONG INCREASE IN EMPLOYMENT IN MARCH MERRILL LYNCH & CO ECONOMIST BRUCE STEINBERG SAID MOST OF THE GROWTH IN THE FIRST QUARTER WILL BE FROM HIGHER PRODUCTIVITY THAT IS BY BUSINESSES INCREASING PRODUCTION WITHOUT MUCH NEW HIRING THE BOND MARKET APPARENTLY SURPRISED BY THE INCREASE IN PAYROLLS REACTED NEGATIVELY TO THE EMPLOYMENT REPORT AT FIRST BUT IT QUICKLY SETTLED DOWN AFTER DETAILS BECAME CLEAR THE YIELD ON THE 30YEAR TREASURY BOND ENDED UNCHANGED FRIDAY AT 683 WITH SO MANY MIXED SIGNALS WALL STREET ANALYSTS DIFFERED ON WHEN THE FEDERAL RESERVE IS LIKELY TO RAISE SHORTTERM INTEREST RATES AGAIN BUT WITH LONGTERM RATES CONTINUING TO CLIMB THERE IS GROWING PRESSURE ON THE FED TO SQUELCH INFLATIONARY EXPECTATIONS BY RAISING INTEREST RATES RESERVE BOARD MEMBER JOHN LAWARE SPEAKING IN DALLAS ON FRIDAY SAID I DON'T SEE ANY CURRENT SIGNS THAT INFLATION IS GROWING AS A PROBLEM HE ADDED THAT THERE'S QUITE A BIT OF SLACK IN THE JOB MARKET AND THAT HE DOESN'T SEE THE SORT OF SHORTAGES IN MATERIALS OR COMMODITIES THAT WOULD REFLECT AN ALARMING PRESSURE ON PRICES AT THIS STAGE OF THE GAME THE LABOR DEPARTMENT REPORT PROVIDED FURTHER EVIDENCE THAT INFLATION ISN'T A PROBLEM NOW AVERAGE HOURLY EARNINGS FOR PRODUCTION AND NONSUPERVISORY WORKERS ROSE ONLY 02 AND JANUARY'S INCREASE WAS REVISED DOWN TO 05 FROM 08 HOURLY EARNINGS HAVE CLIMBED AT A 31 ANNUAL PACE OVER THE PAST SIX MONTHS NOT ONLY IS CURRENT INFLATION EXTREMELY MODEST BUT THE FUNDAMENTALS THAT EXPLAIN FUTURE INFLATION WAGE PATTERNS PRODUCTIVITY IMPORT PRICES AND ENERGY PRICES FOR EXAMPLE ALL REMAIN WELLBEHAVED SAID LAURA TYSON THE CHIEF WHITE HOUSE ECONOMIST THE LABOR DEPARTMENT SAID EMPLOYMENT DECLINED IN INDUSTRIES THAT TEND TO BE SENSITIVE TO THE WEATHER CONSTRUCTION AND EATING AND DRINKING PLACES LOST JOBS FOR THE SECOND MONTH IN A ROW MANUFACTURING EMPLOYMENT ROSE A SLIGHT 12000 IN FEBRUARY THE FIFTH CONSECUTIVE INCREASE BUT HOURS WORKED IN FACTORIES WERE OFF A SHARP 07 PROBABLY BECAUSE OF THE BAD WEATHER HIRING IN SERVICE INDUSTRIES WAS STRONG WITH EMPLOYMENT AT TEMPORARYHELP AGENCIES REBOUNDING AFTER A SMALL DIP IN JANUARY ONE OF EVERY FIVE JOBS ADDED IN THE PRIVATE SECTOR IN THE PAST YEAR HAS BEEN AT A TEMPORARYHELP AGENCY MS ABRAHAM THE LABORSTATISTICS COMMISSIONER CAUTIONED THAT THE DECLINE IN THE JOBLESS RATE MAY BE EXAGGERATED BECAUSE THE BUREAU HAS ALTERED THE METHOD FOR MEASURING UNEMPLOYMENT BUT IS STILL USING SEASONALADJUSTMENT FACTORS BASED ON THE OLD METHOD UNDER THE OLD METHOD THE BUREAU ESTIMATES THE UNEMPLOYMENT RATE WOULD HAVE BEEN 64 IN FEBRUARY ESSENTIALLY THE SAME AS IN JANUARY BUT WELL BELOW YEAREARLIER LEVELS SHE SAID IN ALL THE GOVERNMENT COUNTED 85 MILLION PEOPLE AS OUT OF WORK AND LOOKING FOR JOBS IN FEBRUARY OF THOSE 17 MILLION HAD BEEN OUT OF WORK FOR SIX MONTHS OR MORE ROUGHLY THE SAME AS IN JANUARY AFTER ADJUSTING FOR USUAL SEASONAL FLUCTUATIONS THOSE ARE THE PEOPLE WHO ARE REALLY HURTING SAID JAMES MEDOFF A HARVARD UNIVERSITY LABOR ECONOMIST AN ADDITIONAL 500000 SAID THEY WANTED A JOB BUT HAVE GIVEN UP LOOKING BECAUSE THEY BELIEVE THEIR EFFORTS WILL BE FUTILE AND 46 MILLION SAID THEY ARE WORKING PART TIME BUT WOULD PREFER FULLTIME WORK AMONG THE 11 LARGEST STATES CALIFORNIA CONTINUES TO HAVE THE HIGHEST UNEMPLOYMENT RATE AT 9 IN FEBRUARY PENNSYLVANIA'S WAS THE LOWEST AT 51 ALL THE FIGURES ARE ADJUSTED TO ELIMINATE USUAL SEASONAL FLUCTUATIONS ARTHUR BUCKLER IN DALLAS CONTRIBUTED TO THIS ARTICLE HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 03 INCREASE IN THE INDEX FOR JANUARY AND A 07 INCREASE FOR DECEMBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR JANUARY AND THE CHANGE FROM DECEMBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 116 UP FROM 115 IN THE PREVIOUS MONTH HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9403070084 940307 GLOBAL VIEW FROM COMMUNISM TO CRIME IS A SHORT JOURNEY BY GEORGE MELLOAN HONG KONG CHINESE MAINLAND AUTHORITIES ARE OFFERING TO REPATRIATE SOME OF THE 35 MILLION WORTH OF YACHTS STOLEN IN A RECENT WAVE OF THEFTS AT HONG KONG MARINAS BUT GUANGDONG PROVINCE POLICE CHIEF CHEN SHAOJI WAS REPORTED BY THE SOUTH CHINA MORNING POST TO BE SUGGESTING THAT THE OWNERS SHOULD COMPENSATE THE INNOCENT MAINLANDERS WHO BOUGHT THE BOATS THESE BUYERS DID NOT KNOW THESE YACHTS WERE STOLEN FROM HONG KONG HE WAS QUOTED AS SAYING MOREOVER THEY DID NOT BREAK THE LAW WHEN THEY MADE THE PURCHASE HOW COULD THEY CHINA HAS NO LAW GOVERNING THE SALE OF LUXURY YACHTS PEOPLE HERE WITH A KNOWLEDGE OF MAINLAND WAYS MEANING JUST ABOUT EVERYBODY KNOW THAT OUT OF 12 BILLION CHINESE THERE COULDN'T BE MORE THAN TWO WITH THE MEANS TO AFFORD A YACHT WHO WOULDN'T BE SHREWD ENOUGH TO LEARN ITS ORIGIN EVEN WITHOUT A BRASS PLATE ON THE FLYING BRIDGE SAYING STOLEN IN HONG KONG MAINLAND CHINESE MAY HAVE FAULTS BUT INNOCENCE IS NOT ONE OF THEM WHAT BEGAN AS MERE YACHT THEFT NOW LOOKS MORE LIKE BOATNAPPING FOR RANSOM WITH CHINESE COPS TRYING TO COLLECT THE SWAG PEOPLE HERE ALSO HAVE LITTLE TROUBLE IMAGINING INVOLVEMENT OF VARIOUS MAINLAND AUTHORITIES IN OTHER CRIMES COMMITTED IN HONG KONG SOME STORIES OF THE TRAFFIC IN STOLEN GOODS FROM HONG KONG TO THE MAINLAND MAY BE APOCRYPHAL BUT MOST ARE PROBABLY TRUE THERE IS FOR EXAMPLE THE TALE OF A HONG KONG MAN WHO WHILE BEING CHAUFFEURED IN AN OFFICIAL MERCEDES IN QUANGDONG PROVINCE LOOKED AT THE FLOOR MAT RECOGNIZED A FAMILIAR COFFEE STAIN AND REALIZED THAT THIS CAR HAD BEEN HIS BEFORE IT JOINED THE PARADE OF STOLEN MERCS THAT CROSS THE BORDER TO THE MAINLAND EVERY YEAR SOMETIMES THE PREY IS LARGER THE ALICIA STAR A CARGO SHIP BOUND FROM SINGAPORE TO KOREA WENT MISSING EARLY THIS YEAR AND AFTER THREE WEEKS WAS FOUND TO BE IN THE CUSTODY OF AUTHORITIES IN THE CHINESE PORT OF SHANWEI JUST BEFORE IT DISAPPEARED ON THE HIGH SEAS BETWEEN THE PHILIPPINES AND TAIWAN THE ALICIA STAR WAS ABLE TO REPORT BY SECRET TRANSMITTER THAT IT WAS BEING BOARDED BY MEN IN GREEN UNIFORMS BEARING AUTOMATIC WEAPONS THE SHANWEI AUTHORITIES RELEASED IT BUT NOT BEFORE LIBERATING ITS CARGO OF 5 MILLION OF MARLBORO CIGARETS THESE EXAMPLES ARE BUT A SAMPLING OF ACTIVITIES ENGAGING THE ENERGIES OF MAINLAND CHINESE POLICE MILITARY AND POLITICAL AUTHORITIES ACTIVITIES THAT THE WESTERN WORLD MORE NORMALLY ASSOCIATES WITH CRIMINAL GANGS ANGELINA MALHOTRA WROTE IN LAST MONTH'S EDITION OF THE MAGAZINE ASIA INC ABOUT THE REVIVAL OF SIN IN SHANGHAI A CITY NOTORIOUS FOR DEBAUCHERY IN THE 1920S AND 1930S POLICE PLA PEOPLE'S LIBERATION ARMY AND PARTY MEMBERS ARE OPENING THEIR OWN NIGHTCLUBS AND BROTHELS AND SIGNING JOINTVENTURE AGREEMENTS OFTEN WITH CRIMINAL ORGANIZATIONS FROM OVERSEAS SHE REPORTED IT IS OF COURSE WELL KNOWN THAT THE PLA ASIDE FROM SERVING AS CHINA'S ARMY ALSO IS A VAST BUSINESS ORGANIZATION TRADING IN ARMS AND A WIDE VARIETY OF OTHER PRODUCTS AND SERVICES MS MALHOTRA QUOTES A HONG KONG ANALYST AS ESTIMATING THAT THE PLA'S BUSINESS VENTURES ADDED SOME 27 BILLION TO ITS 57 BILLION 1993 BUDGET IT IS THIS CHINA THAT US SECRETARY OF STATE WARREN M CHRISTOPHER WILL VISIT FRIDAY ASSUMING THAT CHINA'S BEHAVIOR IN THE MEANTIME DOESN'T FORCE HIM TO CANCEL THAT BEHAVIOR RENEWED HARASSING OF LEADING POLITICAL DISSIDENTS MAY BE ASSOCIATED WITH THE CHRISTOPHER VISIT BUT PROBABLY IT IS MORE RELATED TO THE BEGINNING THURSDAY OF THE COMMUNIST PARTY'S NATIONAL PEOPLE'S CONGRESS AN EVENT THAT NORMALLY IS PRECEDED BY EFFORTS TO INTIMIDATE ANTIPARTY FORCES THIS DOESN'T AUGUR WELL FOR THE CHRISTOPHER VISIT OF COURSE HE HAS SAID THAT HUMAN RIGHTS WILL BE AT THE TOP OF HIS AGENDA FOR DISCUSSIONS WITH CHINA'S LEADERS THE US SAYS IMPROVEMENTS IN HUMAN RIGHTS ARE A CONDITION FOR CONTINUING MOST FAVORED NATION TRADING STATUS FOR CHINA IT MIGHT SEEM AT FIRST GLANCE THAT THERE IS LITTLE CONNECTION BETWEEN CHINA'S HUMAN RIGHTS ABUSES AND THE EXTENT OF OFFICIAL CORRUPTION OR INVOLVEMENT BY CHINESE OFFICIALS IN IMMORAL ACTIVITIES BUT IN FACT THERE IS A VERY CLOSE CONNECTION IT IS TO BE FOUND IN THE MORES THAT DEVELOP AMONG WIELDERS OF POWER IN ANY TOTALITARIAN SYSTEM WHICH COMMUNIST CHINA HAS OF COURSE BEEN THROUGHOUT ITS 45YEAR HISTORY IT HAS TO DO WITH THE ABSENCE OF A RULE OF LAW SAYS A YOUNG AMERICAN DIPLOMAT OVER DRINKS AT THE ORIENTAL HOTEL IN BANGKOK THE AUTHORITIES COME TO FEEL THAT THEY ARE ANSWERABLE TO NOBODY BUT THEMSELVES WHEN THE LINES OF AUTHORITY IN SUCH A SYSTEM BREAK DOWN THE USE OF POWER BY LOCAL CADRES MOST OFTEN FOR SELFENRICHMENT KNOW FEW BOUNDS SELFENRICHMENT OF COURSE IS PREFERABLE TO THE ABUSES OF POWER THAT WERE COMMONPLACE WHEN LINES OF AUTHORITY WERE STRONG THEFT AND GRAFT ARE FAR MORE TOLERABLE THAN THE MURDERS COMMITTED BY THE RED GUARDS DURING THE CULTURAL REVOLUTION REALITY SHARPLY CONTRASTS WITH THE PURIFICATION MYTHS COMMUNIST AND OTHER TOTALITARIAN REGIMES HAVE USED TO JUSTIFY THEIR REPRESSIONS MAO TSETUNG PROFESSED A DESIRE TO CREATE A NEW MAN IN CHINA BUT BEHIND THE SCENES HE HIMSELF WITH HIS APPETITES FOR YOUNG WOMEN WAS HARDLY A ROLE MODEL FOR THIS IMAGINED PARAGON CHINA'S MOVE FROM TOTALITARIAN CORRUPTION TOWARD A MORE OPEN SYSTEM STILL BEREFT OF A FUNCTIONING RULE OF LAW PRESENTS PROBLEMS FOR THE WESTERN WORLD THEY GO BEYOND THE ISSUE OF HUMAN RIGHTS ACCORDING TO BERTIL LINTNER WRITING IN THE FAR EASTERN ECONOMIC REVIEW CHINA'S IMPROVEMENTS IN ITS RELATIONS WITH THE MILITARY GOVERNMENT OF BURMA HAS LED TO AN EXPANSION OF OPIUM PRODUCTION ALONG BURMA'S BORDER WITH CHINA TO HELP BURMA PLY TRIBAL INSURGENTS WITH A CASH INCOME CHINA HAS BECOME AN OUTLET FOR SHIPPING OPIUM FROM BORDER DISTILLERIES TO THE OUTSIDE WORLD ACCORDING TO MR LINTNER BURMA NOW ACCOUNTS FOR SOME 60 OF OPIUM PRODUCTION WORLDWIDE IT IS THE MAJOR SOURCE OF HEROIN SOLD ON THE STREETS OF AMERICAN CITIES CHINA HAS PAID ITS OWN PRICE OPIUM ADDICTION ALONG WITH DISEASE CRIME AND OTHER SIDE EFFECTS OF DRUG USE ARE RISING IN CHINA'S YUNNAN PROVINCE WHICH BORDERS BURMA HOW HARD WILL IT BE FOR EXCOMMUNIST COUNTRIES TO ACHIEVE A RULE OF LAW FIRST THEY WILL HAVE TO ACHIEVE CONSTITUTIONAL DEMOCRACY RUSSIA TO ITS CREDIT IS AT LEAST AHEAD OF CHINA ON THAT FRONT BUT OF COURSE STILL IS TROUBLED WITH ITS OWN LAWLESSNESS THE ANSWER WOULD SEEM TO BE THAT IT TAKES A LONG TIME TO OVERWHELM THE VESTED INTERESTS OF TOTALITARIANISM A MAN WHO CAN HOLD THE YACHTS OF MILLIONAIRES FOR RANSOM WITH IMPUNITY IS NOT LIKELY TO GIVE UP THAT POWER VERY WILLINGLY 9403070083 940307 INDUSTRY FOCUS MOTOROLA HEWLETTPACKARD STAKE OUT NEW MARKET POWER AND PRICE ARE KEYS TO STRATEGIES FOR PERSONAL DIGITAL ASSISTANTS BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC AND HEWLETTPACKARD CO TWO MAJOR PLAYERS IN THE EMERGING MARKET FOR PERSONAL DIGITAL ASSISTANTS ARE ABOUT TO UNVEIL SHARPLY DIFFERENT STRATEGIES FOR DOMINATING THAT MARKET HP HASN'T MADE ANY DISCLOSURES BUT IT IS EXPECTED TO ANNOUNCE TODAY THAT IT AND NOVELL INC EACH ARE BUYING SIGNIFICANT MINORITY STAKES IN GEOWORKS A CLOSELY HELD BERKELEY CALIF DEVELOPER OF OPERATING SYSTEMS FOR SMALL HANDHELD DEVICES SUCH AS PDAS THE ALLIANCE'S AIM IS TO FLOOD THE LOWER END OF THE PDA MARKET WITH INFORMATION APPLIANCES FOR LESS THAN 300 APIECE VERSIONS WOULD BE DESIGNED FOR A SPECIFIC BUSINESS USE SUCH AS ELECTRONICALLY PROVIDING MULTIPLE LISTINGS FOR REALESTATE AGENTS OR MEDICAL DATA TO DOCTORS AND NURSES HP WOULD MAKE THE DEVICES AND NOVELL WOULD PROVIDE SOFTWARE LINKING THEM TO COMPUTER NETWORKS MOTOROLA IS GOING AFTER THE HIGH END OF THE MARKET INTRODUCING TODAY A POWERFUL PDA THAT PROVIDES TWOWAY WIRELESS DATA COMMUNICATIONS AND AN OPERATING SYSTEM THAT FACILITATES THE USE OF SPECIAL PROGRAMMABLE AGENTS WHICH AUTOMATICALLY FIND AND FILTER INFORMATION EVEN WHEN THE DEVICE IS TURNED OFF THE MOTOROLA ENVOY IS EXPECTED TO COST ABOUT 1500 AND WILL BE SHIPPED SOMETIME THIS SUMMER ACCORDING TO BOB GROWNEY PRESIDENT AND GENERAL MANAGER OF MOTOROLA'S MESSAGING INFORMATION AND MEDIA SECTOR HP AND MOTOROLA ARE GENERATING STARTLING RATES OF REVENUE GROWTH BY CREATING MASS MARKETS FOR ONCEEXPENSIVE PRODUCTS SUCH AS COMPUTER PRINTERS AND CELLULAR PHONES ANALYSTS SAY BOTH THEIR APPROACHES ARE APT TO BE SUCCESSFUL OVERCOMING THE ADVERSE REACTION TO THE FIRST GENERATION OF RELATIVELY LIMITED PDAS SUCH AS APPLE COMPUTER INC'S NEWTON AND CASIO COMPUTER CO'S ZOOMER WIRELESS DATA COMMUNICATION IS A COMPELLING FEATURE FOR BUSINESSPEOPLE WHO CAN AFFORD IT AND MOTOROLA'S ENVOY IS THE FIRST PDA THAT DOES WHAT ITS MANUFACTURER PROMISED SAYS RICHARD SHAFFER A PRINCIPAL OF TECHNOLOGIC PARTNERS A NEW YORK RESEARCH FIRM MOTOROLA IS FOLLOWING THE BUSINESS MODEL THAT LED TO ITS SUCCESS IN CELLULAR PHONES HANDHELD VERSIONS OF WHICH STARTED OUT AT 2500 SIX YEARS AGO AND NOW SELL FOR ONETENTH OF THAT BUT THE BIGGEST BARRIER TO ACCEPTANCE OF PDAS IS THEIR PRICE CASIO'S ZOOMER ALTHOUGH LITTLE MORE THAN A HIGHPOWERED ORGANIZER COSTS ABOUT 600 AS DOES APPLE'S LATEST VERSION OF THE NEWTON HP WANTS TO SHATTER THAT BARRIER IF YOU WANT TO REACH A BROADER AUDIENCE IT'S TIME FOR US TO MOVE THESE PRICE POINTS DOWN ATTACHING THE RIGHT LEVEL OF FUNCTIONALITY TO EACH DEVICE SAYS ROBERT J FRANKENBERG VICE PRESIDENT AND GENERAL MANAGER OF HP'S PERSONAL INFORMATIONPRODUCTS GROUP MOTOROLA'S TAKING THE RIFLE APPROACH SKIMMING THE CREAM OF THE CROP OF LARGESTDOLLAR SPENDERS WHO ARE REIMBURSED BY THEIR CORPORATIONS OBSERVES RICHARD SIBER A WIRELESS ANALYST FOR ARTHUR ANDERSEN CONSULTING BOSTON HP'S IS A MUCH BROADER SHOTGUN STRATEGY HP IN PALO ALTO CALIF AND NOVELL OF PROVO UTAH WOULD SAY ONLY THAT THEIR STAKES IN GEOWORKS ARE SIGNIFICANT HP HAS BEEN DISCUSSING A RELATIONSHIP WITH GENERAL MAGIC INC A CONSORTIUM INCLUDING MOTOROLA THAT HAS DEVELOPED AN EXTENSIVE OPERATING SYSTEM FOR PDAS AND COMMUNICATIONS SOFTWARE FACILITATING USE OF PROGRAMMABLE AGENTS HP'S MR FRANKENBERG SAID WE HAVEN'T SAID WE'RE NOT INTERESTED IN GENERAL MAGIC BUT CHOSE GEOWORKS BECAUSE ITS OPERATING SYSTEM CAN SQUEEZE SURPRISING FUNCTIONALITY FROM VERY CHEAP MICROPROCESSORS INCLUDING THE ANCIENT INTEL CORP 8086 THAT SELLS FOR ABOUT 1 EACH THE DIFFERENCE IS WHERE THE PRICE POINTS ARE HE SAID WE THINK THERE IS A HUGE MARKET BELOW 300 GEOWORKS IS BY FAR THE BEST ENVIRONMENT FOR BRINGING THE PRICE DOWN IT IS VERY CONSERVATIVE IN ITS USE OF MEMORY AND PROCESSING POWER BUT IS ABLE TO SCALE UP VERY NICELY FROM THAT NOVELL IS KEY TO HP'S APPROACH BECAUSE OF ITS SOFTWARE'S ABILITY TO TIE PDAS INTO LOCALAREA AND WIDEAREA COMPUTER NETWORKS INITIALLY VIA INFRARED TRANSMISSION OR CABLE CONNECTIONS THAT ALLOWS HP TO OFFLOAD EXPENSIVE COMMUNICATIONS AND CONNECTIVITY FEATURES ONTO THE NETWORKS DOCTORS COULD USE SPEEDY INFRARED SENSORS TO DOWNLOAD UPDATES TO DRUGREFERENCE MANUALS FROM NATIONWIDE NETWORKS WHILE NURSES COULD DOWNLOAD PATIENT CHARTS FROM A HOSPITAL'S INTERNAL NETWORK THAT'S PRETTY COOL SAYS WILLIAM LEMPESIS A PDA MARKET RESEARCHER BASED IN PLEASANTON CALIF IT'S A STRATEGY THAT COULD BE MUCH MORE SUCCESSFUL THAN WHAT WE HEAR ABOUT MOBILE COMPANIONS COSTING 600 TO 700 IT HAS TO BE CHEAP COMPETITORS SAY THAT THE HP ALLIANCE IS A LITTLE TARDY WITH THE FIRST DEVICES NOT EXPECTED FOR ABOUT A YEAR USING A 1 MICROPROCESSOR SHAVES TOTAL PRICES BY ONLY ABOUT 40 AND OTHER PDA MAKERS SUCH AS MEMBERS OF THE GENERAL MAGIC GROUP AND APPLE CAN STRIP DOWN THEIR DEVICES TO GET TO THE LOW END AS WELL APPLE SAYS MANY DEVELOPERS ALREADY ARE WORKING ON APPLICATIONS FOR HOSPITALS AND REALESTATE AGENTS MOREOVER DEVICES NOW USING GEOWORKS' OPERATING SYSTEM SUCH AS THE ZOOMER HAVE FLOPPED BECAUSE THEY DON'T OFFER ENOUGH FEATURES FOR THEIR PRICE RATHER THAN DECONSTRUCT THE FUNCTIONS AND USES OF PDAS MOTOROLA HAS INTEGRATED MANY OF THEM THE ENVOY SQUEEZES MOST OF ITS WORKING PARTS ONTO TWO MICROCHIPS AND REDUCES THE WIRELESS MODEM TO A HEAVILY SHIELDED DEVICE ABOUT THE SIZE OF A CREDIT CARD FROM THAT OF A SMALL BRICK THE ENVOY WEIGHS 17 POUNDS AND IS 75 INCHES WIDE 57 INCHES HIGH AND 12 INCHES THICK WITH A 3BY45INCH TOUCHSENSITIVE SCREEN WITH A HIGHLY GRAPHICAL PENBASED OPERATING SYSTEM USERS CAN SEND WIRELESS MESSAGES TO FAX MACHINES WHILE WAITING IN THE AIRPORT OR ELECTRONIC MAIL TO NEW YORK WHILE LUNCHING IN THE BASEMENT OF A SAN FRANCISCO HOTEL MR GROWNEY SAYS WIRELESS MESSAGING BECOMES ADDICTIVE AND ALLOWS BUSINESSPEOPLE TO ENGAGE IN A SORT OF PERPETUAL MULTITASKING THE ENVOY WILL INCLUDE SOFTWARE THAT CAN LINK THE USER TO BOTH WIRELESS AND TELEPHONE NETWORKS AND TO ONLINE SERVICES SUCH AS AMERICA ONLINE COMPUSERVE INC AND SONY ELECTRONIC PUBLISHING CO'S OFFICIAL AIRLINE GUIDES FLIGHTLINE SERVICE USERS CAN DEPLOY PROGRAMMABLE AGENTS OVER AMERICAN TELEPHONE & TELEGRAPH CO'S NATIONWIDE PERSONALINK NETWORK EXPECTED TO BE RUNNING BY THIS SUMMER SEVERAL COMPANIES INCLUDING COMPUSERVE AND MEAD DATA CENTRAL ARE DEVELOPING APPLICATIONS THAT LET USERS' PROGRAMMABLE AGENTS COLLECT INFORMATION ACCORDING TO A PERSONAL PROFILE HOWEVER MOTOROLA COULD UNDERMINE ITS OWN ENVOY WHEN IT BEGINS SHIPPING LATER THIS YEAR A WIRELESS MODEM ON A SMALL CARD THAT SLIPS INTO OTHER PDAS AND NOTEBOOK COMPUTERS THE ENVOY'S INTENDED TARGET BUSINESSPEOPLE MIGHT PREFER TO MAKE THEIR NOTEBOOK COMPUTERS WIRELESS RATHER THAN BUY A SEPARATE WIRELESS PDA MOTOROLA INTRODUCES TODAY THE MOST POWERFUL PDA ITS 1500 ENVOY WHICH HAS TWOWAY WIRELESS DATA CAPABILITY NATIONWIDE APPLE COMPUTER SLASHED PRICES ON A NEW VERSION OF ITS NEWTON MESSAGEPAD LAST WEEK TO 600 MOVING HEAVILY INTO APPLICATIONS FOR CORPORATIONS SUCH AS SALES FORCES INVENTORY CLERKS NEEDS EXTERNAL MODEM FOR WIRELESS CAPABILITY BRINGING PRICE TO ABOUT 1100 HEWLETTPACKARD WILL ANNOUNCE PLANS TODAY TO ALLY WITH GEOWORKS AND NOVELL INC TO MAKE INFORMATION APPLIANCES FOR UNDER 300 FOR SPECIFIC BUSINESS USERS SUCH AS PROVIDING REALESTATE AGENTS WITH MULTIPLELISTING INFORMATION DOCTORS AND NURSES WITH DRUG REFERENCE BOOKS AND PATIENT RECORDS 9403070082 940307 BUSINESS BRIEF FORD MOTOR CO FIRM TO SPEND 200 MILLION TO EXPAND UPGRADE FACTORY FORD MOTOR CO DEARBORN MICH SAID IT PLANS TO INVEST MORE THAN 200 MILLION TO BOOST CAPACITY AND MODERNIZE A PLANT THAT MAKES ENGINES AND FUEL TANKS HERE CREATING ABOUT 100 JOBS OVER THE NEXT FIVE YEARS FORD SAID PLANNED OUTLAYS INCLUDE 120 MILLION TO IMPROVE PRODUCTION OF STEEL FUEL TANKS 42 MILLION TO BUILD A MACHINING OPERATION FOR ENGINE BLOCKS AND CYLINDER HEADS AND 40 MILLION TO RETOOL FOR PRODUCTION OF A NEXTGENERATION FOURCYLINDER ENGINE THE PLANT CURRENTLY EMPLOYS 1360 HOURLY AND SALARIED WORKERS 9403070081 940307 DEMOGRAPHICS MORE DAYCARE CENTERS HELP THE AGING ATTEND TO THE AGED BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL THE AGING OF AMERICA IS SPARKING A BOOM IN ADULT DAY CARE ADULT DAYCARE CENTERS WHICH PROVIDE SUPERVISION IN A GROUP SETTING FOR AGED OR DISABLED PEOPLE WHO LIVE AT HOME HAVE MULTIPLIED TENFOLD IN THE PAST DECADE TO 3000 AND THE TREND IS ACCELERATING THE NUMBER OF FRAIL PARENTS PER ADULT CHILD WILL NEARLY DOUBLE BY 2030 WITH FAMILIES PROVIDING 80 OF NEEDED LONGTERM CARE THE ODDS ARE GOOD THAT SOMEBODY IN YOUR FAMILY IS GOING TO NEED ADULT DAY CARE SOMEDAY SAYS BURTON REIFLER PROGRAM DIRECTOR OF A NATIONAL ADULT DAYCARE DEMONSTRATION PROJECT FUNDED BY THE ROBERT WOOD JOHNSON FOUNDATION HE SEES A NEED FOR 10000 ADULT DAYCARE CENTERS BY 2000 AN EIGHTH AS MANY AS THE CURRENT NUMBER OF US CHILDCARE CENTERS YET REGULATION BY THE STATES IS UNEVEN AND CENTERS OFFER SERVICES SO VARIED THAT CONSUMERS CAN EASILY GET CONFUSED FACILITIES RANGE FROM HOMES AND CHURCH BASEMENTS TO NEW MEDICAL BUILDINGS WITH NURSES AND PHYSICALTHERAPY SETUPS PROGRAMS RUN FROM DAYLONG TVWATCHING TO THEME WEEKS WITH DRAMA TROUPES AND FIELD TRIPS THE FIELD'S FAST GROWTH IS ATTRACTING MANY WOULDBE ENTREPRENEURS RAISING RISKS FOR CONSUMERS THIS IS JUST THE THING THE WIFE AND I HAVE BEEN LOOKING FOR ONE CALLER TOLD A NATIONAL COUNCIL ON THE AGING OFFICIAL AFTER SEEING A TELEVISION SHOW ON ADULT DAY CARE WE HAVE AN EMPTY GARAGE WE CAN USE WE'LL JUST PUT IN SOME HEAT A TV AND A FEW CHAIRS THE COUNCIL IS HEADING AN EFFORT TO SET UNIFORM ACCREDITATION STANDARDS FINDING GOOD ADULT DAY CARE CAN BE WORTH THE EFFORT ADULT DAY CARE DELAYS NURSINGHOME PLACEMENT BY AN AVERAGE OF 15 TO 22 MONTHS A CALIFORNIA STUDY SHOWS AT ABOUT 20 TO 50 A DAY IT COSTS ONETHIRD TO ONEHALF AS MUCH AS A NURSING HOME AND CAN SERVE NEARLY ANYONE WHO ISN'T BEDRIDDEN BUT SELECTING A CENTER IS OFTEN A PAINFUL TRIALANDERROR PROCESS WHEN VICKIE LOWE PLACED HER BROTHER DISABLED BY A STROKE IN AN ADULT DAYCARE CENTER IN A STOREFRONT NEAR HER COLUMBUS OHIO HOME THE DIRECTOR SEEMED TO KNOW PRETTY MUCH WHAT SHE WAS TALKING ABOUT MS LOWE SAYS BUT THE CENTER STAFF LACKED CRUCIAL JUDGMENT AND SKILLS THE DIRECTOR ONCE LEFT MS LOWE'S BROTHER SITTING ALONE IN A VAN FOR TWO HOURS IN A DANGEROUS NEIGHBORHOOD ANOTHER TIME SHE SLAMMED HIS FINGERS IN THE VAN DOOR A SECOND CENTER MS LOWE VISITED IN A CHURCH BASEMENT HAD THREE CLIENTS SITTING AROUND DOING A JIGSAW PUZZLE A ROUTINE THAT GETS OLD AFTER AN HOUR OR TWO SHE SAYS FINALLY AFTER A LONG WAIT FOR ADMISSION AN OPENING CAME UP AT HERITAGE DAY HEALTH CENTER IN COLUMBUS WHERE MS LOWE'S BROTHER GETS PHYSICAL THERAPY RECREATION AND SOCIAL ACTIVITIES THAT HAVE EASED HIS DEPRESSION WE HAVE SUCH PEACE OF MIND WHEN HE'S THERE SHE SAYS THOUGH MANY STATE REGULATORS SAY REPORTED ABUSES ARE RARE CALIFORNIA REGULATORS SHUT DOWN A CENTER WHERE STAFFERS ABUSED CLIENTS VERBALLY FAILED TO ADMINISTER MEDICATIONS AND SPECIAL DIETS AND DIDN'T REPORT ACCIDENTS AND INJURIES AS REQUIRED OTHERS DISREGARD THE MOST BASIC SAFETY RULES ILLINOIS REGULATORS CLOSED A CENTER IN A TOUGH CHICAGO NEIGHBORHOOD WHERE CLIENTS HAD TO CLIMB OVER A STACK OF BOXES TO GET OUT THE EMERGENCY EXIT AND ONCE OUTSIDE RUN FROM THE CENTER'S GUARD DOG A SNARLING DOBERMAN CLIENTS WHO MANAGED TO GET THE BOXES OUT OF THE WAY AND GET OUTSIDE GOT BITTEN BY THE DOG A STATE OFFICIAL SAYS FAMILY MEMBERS SHOULD CHECK UP ON ADULT DAYCARE PROGRAMS BY VISITING THEM UNANNOUNCED DR REIFLER SAYS WARNING SIGNS ENDLESS TV WATCHING OR A LACK OF PERSONAL ATTENTION TO CLIENTS BY STAFF ONE CENTER DIRECTOR TELLS OF VISITING A CENTER WHERE TWO OF THE THREE CLIENTS WERE SLEEPING IN HOSPITAL BEDS AND THE THIRD WAS EATING LUNCH ALONE THE ONLY STAFF PERSON HAD HER BACK TURNED TO ALL THREE WORKING ON A PUZZLE THE DIRECTOR SAYS A CENTER SHOULD OFFER INTERACTION AND ACTIVITIES AND THAT DOESN'T MEAN LEGOS OR MACARONI ART THE DIRECTOR SAYS THE MATERIALS SHOULD BE AGEAPPROPRIATE INCLUDING ACTIVITIES THAT REFLECT A CLIENT'S LIFE EXPERIENCE AND INTERESTS THE SETTING SHOULD BE SAFE AND CLEAN WITH AT LEAST ONE TRAINED STAFFER FOR EVERY SIX ADULTS IF NEEDED SECURITY DOORS SHOULD BE EQUIPPED WITH DOUBLE KNOBS OR RELEASE BUTTONS TO PREVENT WANDERING WITHOUT BLOCKING FIRE ROUTES THE STAFF SHOULD BE TRAINED TO RECOGNIZE MEDICAL PROBLEMS SUCH AS UNTREATED INFECTIONS FAMILIES WHO NEED FINANCIAL HELP SHOULD ASK ABOUT PRIVATE GRANTS OR STATE AID PROGRAMS FOR ADULT DAYCARE USERS MEDICAID CAN BE USED FOR ADULT DAY CARE IN ABOUT 35 STATES A GROWING NUMBER OF PRIVATE LONGTERM CARE INSURANCE POLICIES COVER ADULT DAY CARE AS WELL SAYS JAMES WEIL VICE PRESIDENT SENIOR SERVICES FOR METROPOLITAN LIFE INSURANCE CO FAMILY MEMBERS SHOULD FEEL WELCOME AND STAFFERS SHOULD TALK DAILY WITH THEM TELLING THEM ABOUT THEIR RELATIVE'S DAY AND HELPING WITH REFERRALS TO OTHER NEEDED SERVICES SAYS BILL WEAVER EXECUTIVE DIRECTOR OF DAILY LIVING CENTERS A NONPROFIT OKLAHOMA CITY ADULT DAYCARE CONCERN MANY CENTERS ALSO OFFER TRANSPORTATION PHYSICAL THERAPY CAREGIVER SUPPORT GROUPS AND OTHER SERVICES BUT ELDERS' NEEDS DIFFER SO WIDELY THAT EVEN THE HIGHESTQUALITY CENTER CAN BE ALL WRONG LINDA SIMPSON AND HER FATHER FACED THREE STARKLY DIFFERENT CHOICES WHEN THEY SEARCHED FOR AN ATLANTAAREA DAYCARE CENTER FOR MS SIMPSON'S MOTHER WHO IS FRAIL AND HAD SUFFERED A SERIES OF STROKES ONE WAS A FAIRLY STANDARD SENIOR CENTER WITH SEWING PUZZLES CRAFTS AND SPEAKERS AT THE OTHER EXTREME WAS A CENTER FOR ALZHEIMER'S PATIENTS WHERE MOST CLIENTS WEREN'T ABLE TO TALK MUCH WITH OTHERS WHILE MS SIMPSON'S MOTHER WASN'T ABLE TO DO MOST OF THE ACTIVITIES IN THE FIRST CENTER SHE WAS MORE LUCID THAN MOST OF THE CLIENTS IN THE SECOND MS SIMPSON SAYS SO THE FAMILY CHOSE A THIRD ALTERNATIVE A HOMELIKE PLACE WHERE STAFF MEMBERS WERE ON HAND TO HELP CLIENTS GET AROUND BUT WHERE MANY CLIENTS WERE STILL ABLE TO SOCIALIZE CLIENTS ALSO WERE EXPECTED TO HELP SET THE TABLE AND DO OTHER MINOR TASKS A PRACTICE THAT DELIGHTS HER MOTHER MS SIMPSON SAYS A GROWING BODY OF EVIDENCE SHOWS GOOD ADULT DAY CARE CAN EASE THE DEPRESSION OFTEN ASSOCIATED WITH AGING BONNIE WALSON DIRECTOR OF THE HERITAGE DAY CENTER IN COLUMBUS SAYS ONE PARTICIPANT ASKED A STAFFER TO CLOCK OUT FOR HIM AT LUNCH BECAUSE DAY CARE FELT SO MUCH LIKE THE JOB HE HAD ONCE LOVED ADULT DAY CARE ALSO CAN LOWER MEDICAL BILLS ONE ELDERLY WOMAN WHO LIVED ALONE IN OKLAHOMA CITY WAS VISITING THE HOSPITAL EMERGENCY ROOM EVERY FEW WEEKS FOR ANXIETY ATTACKS WORSENED BY HER FEAR OF HAVING A STROKE ONCE ENROLLED IN A CENTER SHE WAS CHECKED DAILY AND REASSURED BY A NURSE THAT ELIMINATED THE NEED FOR EMERGENCY CARE MR WEAVER SAYS FOR SUCH CLIENTS HE ADDS ADULT DAY CARE IS A LIFELINE A SOCIAL MATRIX THAT EASES THE ISOLATION OF OLD AGE 9403070080 940307 TOADSMOKING GAINS ON TOADLICKING AMONG DRUG USERS TOXIC HALLUCINOGENIC VENOM SQUEEZED DRIED AND PUFFED HAS OTHERS TURNED OFF BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO FOR THE RECORD MOJO NIXON SAYS NEITHER HE NOR ANY MEMBER OF HIS ROCK BAND MOJO NIXON AND THE TOAD LICKERS HAS EVER ACTUALLY LICKED A TOAD STILL WITH A NAME LIKE THAT MR NIXON'S BAND CAN HARDLY HELP BUT ATTRACT ATTENTION FROM WHAT AUTHORITIES SAY IS A SMALL BUT GROWING SEGMENT OF THE DRUG CULTURE THAT HAS TAKEN UP THE BIZARRE PRACTICE OF INGESTING VENOM SQUEEZED FROM LIVE TOADS PEOPLE COME UP TO US ALL THE TIME AND ASK IF WE GET HIGH LICKING TOADS SAYS MR NIXON WHO CALLS THE VERY IDEA INSANE MOJO KNOWS HE READ SOMETHING ABOUT TOADLICKING IN THE UNDERGROUND PRESS ABOUT FOUR YEARS AGO AND HIS BAND THE BURGER EATERS BECAME THE TOAD LICKERS ALTHOUGH TALES OF GETTING A BUZZ FROM LAPPING TOAD SQUEEZINGS HAVE CIRCULATED THROUGH UNDERGROUND LORE SINCE THE 1960S DRUG AUTHORITIES ON BOTH SIDES OF THE LAW AGREE ON ONE THING TOADLICKING IS NOT JUST WEIRD BUT DANGEROUS TOAD VENOM CONTAINS DOZENS OF CHEMICALLY ACTIVE COMPOUNDS INCLUDING ENOUGH POISON TO KILL DOGS THAT SOMETIMES CATCH THE WARTY LITTLE HOPPERS AND TRY TO EAT THEM I WOULD THINK YOU COULD POISON YOURSELF PRETTY BADLY BEFORE YOU GOT HIGH LICKING TOADS SAYS ANDREW T WEIL AN ETHNOPHARMACOLOGIST AT THE UNIVERSITY OF ARIZONA'S COLLEGE OF MEDICINE IN TUCSON THUS AFTER A SPURT OF EXPERIMENTATION TOADLICKING TAPERED OFF TOADSMOKING ON THE OTHER HAND SEEMS TO BE LESS RISKY AND IS ON THE RISE SAYS CECIL SCHWALBE A RESEARCH ECOLOGIST FOR THE INTERIOR DEPARTMENT DR SCHWALBE SAYS THE HEAT FROM SMOKING VENOM APPEARS TO BREAK DOWN THE TOXINS WHILE RETAINING THE PSYCHEDELICS THE PEOPLE WHO BELIEVE IN BETTER LIVING THROUGH CHEMISTRY FOUND OUT YOU COULD GET THE SAME HALLUCINOGENIC REACTION FROM SMOKING TOADS AS FROM LICKING THEM HE SAYS DR WEIL A PHYSICIAN AND DRUGCULTURE RESEARCHER SAYS THAT WHEN HE AND A FELLOW RESEARCHER SMOKED DRIED VENOM FROM A COLORADO RIVER TOAD IT PRODUCED A SENSE OF WONDER AND WELLBEING DR WEIL'S REPORT PUBLISHED TWO YEARS AGO IN AN OBSCURE ANTHROPOLOGICAL JOURNAL ANCIENT MESOAMERICA APPARENTLY SENT A SMOKE SIGNAL THROUGH THE DRUG UNDERGROUND ARIZONA WILDLIFE AUTHORITIES RECENTLY RAIDED THE HOME OF AN UNLICENSED REPTILEDEALER NEAR TUCSON AND DISCOVERED DOZENS OF FOOTBALLSIZED COLORADO RIVER TOADS SITTING PLACIDLY IN THE MAN'S LIVING ROOM STATE LAW DOES ALLOW POSSESSION OF UP TO 10 TOADS IF YOU HAVE A FISHING LICENSE JOHN ROMERO LAWENFORCEMENT PROGRAM MANAGER FOR THE ARIZONA DEPARTMENT OF GAME AND FISH SAYS HIS AGENTS PUZZLED AWHILE OVER WHY ANYONE WOULD HAVE TOADS AROUND THE HOUSE THEN THE LIGHT CAME ON MR ROMERO SAYS ON THE SOUTHERN CALIFORNIA DRUG MARKET THESE DAYS DRUG AGENTS SAY A HEALTHY TOAD CAN FETCH UP TO 8 ONE ALLEGED DEALER WAS ARRESTED FOR ILLEGAL TRADING IN WILDLIFE LAST FALL AFTER HE RAN AN AD IN THE UNIVERSITY OF ARIZONA STUDENT NEWSPAPER SEEKING A TOAD SUPPLY CANE TOADS A 1989 DOCUMENTARY FILM THAT DESCRIBES SMOKING TOAD VENOM IN AUSTRALIA HAS BECOME A CULTVIDEO FAVORITE TOADLICKING ALSO CAME UP RECENTLY ON THE TELEVISION SERIES LA LAW WHICH MISTAKENLY SHOWED A BULLFROG INSTEAD OF A TOAD AND IN AN MTV BEAVIS AND BUTTHEAD CARTOON THE SHOW REFLECTS WHAT'S GOING ON IN THE YOUTH CULTURE EXPLAINS A BEAVIS AND BUTTHEAD SPOKESWOMAN STILL THE WHOLE TOAD THING IS SO BIZARRE THAT EVEN CRITICS ARE HARD PRESSED TO MAINTAIN A STRAIGHT FACE SOUTH CAROLINA LAWMAKERS GIGGLED WHEN A BILL WAS INTRODUCED FOUR YEARS AGO THAT WOULD HAVE MADE THE STATE THE FIRST TO OUTLAW TOADLICKING REP PATRICK B HARRIS FINDING THE PRACTICE REPULSIVE BUT AMUSING PROPOSED SENTENCING VIOLATORS TO 60 HOURS OF PUBLIC SERVICE IN A LOCAL ZOO TOADS MADE THE NEWS AGAIN LAST MONTH WHEN CALIFORNIA DRUG AGENTS ARRESTED ROBERT SHEPARD A 41YEAROLD BOY SCOUT TROOP LEADER IN ANGELS CAMP CALIF ABOUT 100 MILES EAST OF SAN FRANCISCO MR SHEPARD WAS CHARGED WITH SEVERAL DRUG OFFENSES INCLUDING POSSESSION OF BUFOTENINE A CHEMICAL CONSTITUENT OF TOAD VENOM AND A RECOGNIZED HALLUCINOGEN THE AGENTS ALSO IMPOUNDED MR SHEPARD'S FOUR COLORADO RIVER TOADS BRIAN PETER HANS AND FRANZ GREGORY ELAM THE OFFICER WHO MADE THE ARREST SAYS MR SHEPARD WAS SO CONTRITE HE HELPED DRUG AGENTS MAKE A TRAINING VIDEO SHOWING HOW VENOM IS SQUEEZED FROM KIDNEYSHAPED PAROTOID GLANDS ON THE BACK OF A LIVE TOAD THEN DRIED AND SMOKED IT WAS PRETTY DISGUSTING SAYS MR ELAM WHO HAS A BIG PHOTOGRAPH OF A TOAD ON HIS OFFICE WALL THIS IS NOT SOMETHING YOU WOULD BRAG ABOUT TO YOUR MAMA MR SHEPARD WON'T TALK TO A REPORTER ABOUT TOADS OR ANYTHING ELSE BUT JAMES WEBSTER HIS ATTORNEY SAYS HE HIMSELF HAD NEVER HEARD OF TOADSMOKING I'VE HEARD OF A PRINCESS KISSING A TOAD SAYS MR WEBSTER MISREMEMBERING THE STORY OF THE FROG PRINCE I GUESS THESE DAYS SHE'D BE BUSTED TOO NARCOTICS AGENTS SAY MR SHEPARD MAY BE THE FIRST PERSON EVER ARRESTED ON TOADSMOKING CHARGES BUFOTENINE AS A HALLUCINOGEN HAS BEEN ON FEDERAL AND STATE DANGEROUSDRUG LISTS FOR YEARS AND ITS POSSESSION IS ILLEGAL IN HIS ANCIENT MESOAMERICA ARTICLE DR WEIL REPORTED THAT TOAD SKINS AND ARTIFACTS DEPICTING TOADS HAVE TURNED UP AT INDIAN CEREMONIAL SITES IN MEXICO AND CENTRAL AMERICA DATING BACK MORE THAN A THOUSAND YEARS THE RESEARCHER AND OTHERS SPECULATE THAT MAYANS AZTECS AND OTHER ANCIENTS MAY HAVE USED TOAD VENOM AS AN INTOXICANT IN THEIR RITES DR WEIL AND HIS COAUTHOR WADE DAVIS THEORIZE THAT THE COLORADO RIVER TOAD HAS BECOME THE SMOKERS' CHOICE NOT BECAUSE OF BUFOTENINE BUT BECAUSE IT CONTAINS LARGE AMOUNTS OF THE CHEMICAL COMPOUND 5MEODMT A POWERFUL PSYCHOACTIVE DRUG EXPERTS DESCRIBE THE TOAD AS A SHY REPTILE FOUND MOSTLY IN THE SONORAN DESERT IN NORTHERN MEXICO AND IN THE SOUTHERN PARTS OF ARIZONA AND CALIFORNIA THE TOADS LIVE UNDERGROUND MOST OF THE YEAR EMERGING ONLY DURING THE BRIEF RAINY SEASON IN MIDSUMMER THE COLORADO RIVER TOAD DR WEIL SAYS IS A VIRTUAL PSYCHEDELIC FACTORY WHOSE VENOM PRODUCES A 20MINUTE HIGH THAT IS SO INTENSE IT CAN BE FRIGHTENING TO THE UNINITIATED I'VE SEEN PEOPLE TAKE ONE DEEP PUFF AND FALL OVER BACKWARD AS THEY EXHALE HE SAYS TOAD PUFFERS DR WEIL SAYS USUALLY ARE UNRESPONSIVE FOR FIVE MINUTES OR MORE MAKING LITTLE NOISES UNTIL THEY OPEN THEIR EYES MR DAVIS A WASHINGTON ANTHROPOLOGIST CALLS THE EFFECT A MAGICAL SLAP IN THE FACE THAT MAY BE PLEASING TO TOADSMOKERS BUT IT COULD MEAN PROBLEMS FOR TOADS IN THE WILD DR WEIL SAYS HE HAS ALREADY RECEIVED TELEPHONE CALLS FROM CALIFORNIANS EAGER TO VISIT SOUTHERN ARIZONA WHERE THE CRITTERS ARE PLENTIFUL TO CATCH COLORADO RIVER TOADS THIS LOOKS LIKE IT COULD BE A TREND AND THE TOAD IS THE ONE THAT WILL SUFFER SAYS MR ROMERO THE ARIZONA GAME AND FISH OFFICIAL WORRIED ABOUT DEPLETING THE TOAD POPULATION THE TOAD'S PROTECTOR SAY OFFICIALS WILL PROBABLY BE ENVIRONMENTAL LAWS NOT DRUG LAWS CALIFORNIA FOR EXAMPLE BEGAN IMPLEMENTING A LAW LAST WEEK THAT MAKES IT A MISDEMEANOR TO POSSESS ANY OF THE SHRINKING POPULATION OF COLORADO RIVER TOADS IN THE STATE EVENTUALLY SAYS MR ELAM THE ANGELS CAMP DRUG AGENT YOU'LL PROBABLY SEE A MUCH STIFFER PENALTY FOR POSSESSION OF A TOAD THAN FOR A CONTROLLED SUBSTANCE THE ENVIRONMENTALISTS HAVE MORE CLOUT THAN THE COPS THE COLORADO RIVER TOAD IS AN AMPHIBIAN A PAGEONE ARTICLE IN MONDAY'S EDITION INCORRECTLY CALLED THE TOAD A REPTILE 9403070079 940307 LETTERS TO THE EDITOR MUSING AND QUIRKS OF A GREAT MIND SUSAN LEE'S FEB 25 REVIEW LEISURE & ARTS OF JOHN MAYNARD KEYNES THE ECONOMIST AS SAVIOR BY ROBERT SKIDELSKY SAYS KEYNES WAS ANTISEMITIC THERE ARE ONLY TWO RATHER SMALL SECTIONS OF THE BOOK THAT DISCUSS JEWS IF I WERE REVIEWING THE BOOK AND CHOSE TO NOTE THE POSSIBILITY OF KEYNES BEING ANTISEMITIC I WOULD AT LEAST TRY TO KEEP SOME BALANCE AND EXCERPT FROM THE OTHER SECTION AS WELL THAT SECOND SECTION DESCRIBES HOW IN 1933 KEYNES VIGOROUSLY DEFENDED HIS DESCRIPTION OF GERMAN POLICY TOWARD JEWS AS BARBARISM PERHAPS THE QUESTION WELLKNOWN TO STUDENTS OF ECONOMIC THOUGHT OF WHICH KEYNES COULD ALSO BE ASKED OF HIS ATTITUDE TOWARD JEWS MR SKIDELSKY SUGGESTS STEREOTYPES SHOULD BE VIEWED WITHIN THE CONTEXT OF THE TIMES IN WHICH THEY ARE MADE TO ME THE BOOK IS WELL WORTH ITS PRICE AND IT SHOULD BE TO ANYONE WHO DERIVES VALUE FROM EXPLORING THE MUSINGS AND INTELLECTUAL QUIRKS OF A GREAT MIND 9403070078 940307 TECHNOLOGY BRIEF ELECTRONIC ARTS COMPANY BRODERBUND SET VOTES ON PLAN TO COMBINE ELECTRONIC ARTS SAID ITS PROPOSED ACQUISITION OF BRODERBUND SOFTWARE INC CAN PROCEED TO SHAREHOLDER VOTES AFTER THE FEDERAL TRADE COMMISSION LAST WEEK CUT SHORT THE WAITING PERIOD REQUIRED UNDER FEDERAL ANTITRUST LAW THE COMPANIES HAVE SCHEDULED SPECIAL SHAREHOLDER MEETINGS FOR MAY 20 TO VOTE ON THE DEAL ELECTRONIC ARTS OF SAN MATEO CALIF SAID IT RECEIVED WORD LAST TUESDAY FROM THE FTC OF EARLY TERMINATION OF THE WAITING PERIOD THE UNION OF ELECTRONIC ARTS' FLAIR FOR ENTERTAINMENT SOFTWARE PROGRAMS WITH BRODERBUND'S EXPERTISE IN EDUCATIONAL GAMES WOULD GIRD THE COMBINED COMPANY FOR BATTLE AGAINST RIVALS SUCH AS REDMOND WASHBASED MICROSOFT CORP'S HOME SOFTWARE UNIT AND ACCLAIM ENTERTAINMENT INC OF OYSTER BAY NY 9403070077 940307 PRODIGY NETWORK ADDS BULLETIN BOARDS FOR 24 LANGUAGES TEACHERS SOUGHT THE SERVICE BUT LINGUISTS ARE CRITICAL OF A LACK OF DIACRITICALS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL WHITE PLAINS NY COMPUTER ONLINE NETWORK PRODIGY SERVICES SAID IT ADDED BULLETIN BOARDS FOR USERS WHO WANT TO USE AND DISCUSS FOREIGN LANGUAGES UNTIL NOW PRODIGY HASN'T ALLOWED CUSTOMERS TO USE FOREIGN LANGUAGES BECAUSE IT WOULDN'T BE FAIR TO USERS WHO ARE EXPECTING TO SEE ENGLISH A SPOKESMAN SAID PRODIGY SAID IT ADDED THE SERVICE BECAUSE TEACHERS REQUESTED A FORUM IN WHICH STUDENTS COULD USE ANOTHER LANGUAGE PRODIGY HAS CREATED 24 BULLETIN BOARDS DESIGNED TO USE SEPARATE LANGUAGES INCLUDING ESPERANTO AN INVENTED HYBRID OF EUROPEAN LANGUAGES EACH BULLETIN BOARD WILL BE MONITORED BY A SPECIALIST IN THE PARTICULAR LANGUAGE WHO WILL HELP ANSWER USERS' QUESTIONS ALTHOUGH THE ESPERANTO POST HASN'T BEEN FILLED THE BULLETIN BOARDS WON'T PROVIDE LIVE CONVERSATION BUT RATHER WILL EXCHANGE MESSAGES AND WRITTEN CONVERSATIONS PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO SINCE 1990 AMERICA ONLINE INC VIENNA VA HAS OFFERED A FORUM IN WHICH USERS MAY CHAT ELECTRONICALLY IN SELECTED FOREIGN LANGUAGES DURING SPECIFIED TIMES INCLUDING POLISH ESPERANTO AND RUSSIAN H&R BLOCK CO'S COMPUSERVE INFORMATION SERVICES HAS OFFERED FOREIGNLANGUAGE FORUMS ON ITS ONLINE SERVICE SINCE 1985 USERS PONDER SUCH HEADY TOPICS AS THE FRENCH WORD FOR SPEED BUMPS RALENTISSEURS IN THE ITALIAN FORUM DANTE IS A HOT TOPIC AND GERMAN SPEAKERS REPEATEDLY TALK ABOUT UMLAUTS THE TWO SMALL CIRCLES THAT SOMETIMES APPEAR OVER VOWELS THOUGH NONE OF THE SERVICES CAN SHOW SUCH DIACRITICAL MARKS WHICH IRRITATES SOME SERIOUS LINGUISTS ACCENTS ARE AN INTEGRAL PART OF ROMANCE LANGUAGES SAID LORRAINE KENNEDY EXECUTIVE VICE PRESIDENT FOR ALL LANGUAGES SERVICES INC A NEW YORK TRANSLATION SERVICE CARMEN NAVARO A TRANSLATOR FOR THE SERVICE SAID SUCH A MARKED OMISSION OF ACCENTS WOULD NOT BE ACCEPTED BY THE SPANISHSPEAKING PEOPLE PRODIGY'S NEW BULLETIN BOARDS SERVE ONLY LANGUAGES THAT USE THE ROMAN ALPHABET THAT OF THE ENGLISH LANGUAGE THUS EXCLUDING ARABIC HEBREW AND RUSSIAN'S CYRILLIC ALPHABET FOR INSTANCE USERS OF AMERICA ONLINE'S RUSSIAN FORUM OVERCOME THAT BY TRANSLITERATING OR USING CORRESPONDING ROMAN CHARACTERS HOWEVER SAID VICTOR HERTZ PRESIDENT OF CORPORATE LANGUAGE SERVICES I CAN'T IMAGINE HOW YOU SPEAK RUSSIAN WITHOUT CYRILLIC CHARACTERS IT WOULD BE LIKE WRITING ENGLISH IN CYRILLIC CHARACTERS 9403070076 940307 ECONOMY MOYNIHAN SEES HEALTH PLAN COMPROMISE WITH RULES FOR COMPANIES BASED ON SIZE BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE PREDICTED THAT CONGRESS WILL END UP ENACTING A COMPROMISE SYSTEM IN WHICH LARGE AND SMALL COMPANIES FACE DIFFERENT HEALTHCOVERAGE REQUIREMENTS ASKED ON CBS'S FACE THE NATION IF PRESIDENT CLINTON'S PROPOSED EMPLOYER MANDATE WAS DEAD CHAIRMAN DANIEL MOYNIHAN D NY SAID YOU DON'T HAVE TO HAVE A UNIVERSAL EMPLOYER MANDATE YOU MIGHT DIVIDE IT BETWEEN SOMEWHAT LARGER FIRMS AND LEAVE A DIFFERENT ARRANGEMENT FOR THE SMALLER FIRMS PROBABLY WE'RE GOING TO END UP THERE BECAUSE YOU'LL HAVE TO HAVE THAT TO GET THE SUPPORT OF THE SMALLER FIRMS MR MOYNIHAN APPEARED TO BE REFERRING TO AN IDEA THAT IS GAINING INCREASED ATTENTION IN CONGRESS AND THROUGHOUT THE HEALTHPOLICY COMMUNITY THAT OF REQUIRING EMPLOYERS WITH MORE THAN 100 WORKERS TO CONTRIBUTE TO THE COST OF THEIR WORKER'S HEALTHINSURANCE PREMIUMS WHILE EMPLOYEES OF COMPANIES WITH FEWER THAN 100 WORKERS WOULD BE REQUIRED TO OBTAIN HEALTH COVERAGE ON THEIR OWN IF THEIR COMPANY CHOSE NOT TO PAY FOR IT UNDER THIS SCENARIO GOVERNMENT SUBSIDIES WOULD BE AVAILABLE TO ASSIST LOWINCOME WORKERS MR CLINTON ON THE OTHER HAND HAS PROPOSED REQUIRING ALL EMPLOYERS TO PAY ON BEHALF OF EACH FULLTIME WORKER AT LEAST 80 OF THE AVERAGE PRICE OF A FEDERALLY DEFINED PACKAGE OF BENEFITS HIS PLAN WOULD OFFER FEDERAL FINANCIAL ASSISTANCE TO LOWWAGE COMPANIES WITH FEWER THAN 75 WORKERS MR MOYNIHAN'S THOUGHTS ARE IMPORTANT BECAUSE HE LEADS A PANEL THAT IS CRITICAL TO THE FATE OF HEALTH LEGISLATION THE CHAIRMAN'S COMMENTS ALSO DOVETAIL WITH RECENT REMARKS BY HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO STRESSING THE DEMOCRATS' FLEXIBILITY IN ALTERING THE PRESIDENT'S PLAN DURING THE TELEVISION INTERVIEW MR MOYNIHAN ALSO SIGNALED THE LIKELIHOOD THAT TWO OTHER OF PRESIDENT CLINTON'S PROPOSALS WOULD BE SIGNIFICANTLY ALTERED BY CONGRESS ASKED IF THE PRESIDENT'S LARGE REGIONALPURCHASING COOPERATIVES CALLED HEALTH ALLIANCES WOULD DIE IN CONGRESS MR MOYNIHAN SAID I THINK SO HOWEVER HE SUGGESTED THE POSSIBILITY OF SMALLER LESS POWERFUL BUYING POOLS SUCH AS THOSE BEING ADVOCATED BY AN ASSOCIATION OF HEALTHINDUSTRY EXECUTIVES AND ACADEMICS CALLED THE JACKSON HOLE GROUP MR MOYNIHAN SAID THE PRESIDENT'S PROPOSED CAPS ON THE ANNUAL INCREASE IN HEALTHINSURANCE PREMIUMS PROBABLY CAN SURVIVE CONGRESS BUT THEY MAY HAVE TO BE A LITTLE MORE FLEXIBLE MR MOYNIHAN'S REMARKS CAME AFTER CONGRESSIONAL REPUBLICANS CONCLUDED A TWODAY RETREAT TO DISCUSS THE PARTY'S STRATEGY FOR HEALTH CARE THE GATHERING HOWEVER FAILED TO RESOLVE MAJOR DIFFERENCES AMONG GOP MEMBERS THE HOUSE WAYS AND MEANS SUBCOMMITTEE ON HEALTH IS SCHEDULED TO BEGIN DRAFTING A HEALTH BILL TOMORROW AND THE WORK THERE WILL TEST WHETHER HOUSE REPUBLICANS ARE WILLING TO AT LEAST HELP MOVE THE PROCESS FORWARD THE RANKING REPUBLICAN ON THE HEALTH SUBCOMMITTEE REP BILL THOMAS OF CALIFORNIA HAS SPOKEN OF A SHARED COMMITMENT TO THE PRESIDENT'S GOAL OF UNIVERSAL COVERAGE BUT IT IS UNCLEAR HOW FAR THEY WILL GO AT THIS STAGE GIVEN PRESSURE FROM THEIR MORE CONSERVATIVE LEADERSHIP THE PARTY REMAINS SPLIT OVER WHETHER IT SHOULD ENDORSE MANDATES ON EITHER INDIVIDUALS OR EMPLOYERS WHICH MANY EXPERTS SAY ARE NECESSARY TO ACHIEVE UNIVERSAL COVERAGE I BELIEVE IN UNIVERSAL COVERAGE AND I DON'T KNOW HOW YOU GET THERE WITHOUT A MANDATE SAID SEN JOHN CHAFEE R RI WHO HAS SPONSORED AN ALTERNATIVE PLAN WITH MR THOMAS BUT IN HIS RADIO RESPONSE TO PRESIDENT CLINTON OVER THE WEEKEND MR THOMAS USED THE MORE CONSERVATIVE PHRASE UNIVERSAL ACCESS TO DESCRIBE WHERE REPUBLICANS ARE UNITEDNOT GUARANTEED COVERAGE FOR ALL FAMILIES THE DISTINCTION IS ALSO IMPORTANT IN MEASURING WHETHER THE GOP CAN PROMISE TO ACHIEVE THE MORE LIMITED GOALS OF INSURANCEMARKET REFORM AND PROVISIONS GUARANTEEING PORTABILITY OF HEALTH PLANS WHICH ALL SIDES SEEM AGREED UPON WITHOUT UNIVERSAL COVERAGE TO ENSURE A LARGE RISK POOL MANY EXPERTS ARGUE THAT INSURANCE WILL GO INTO A DEATH SPIRAL OF EVER RISING PRICES WITH THESE REFORMS ONE OF THE LEADING SUPPORTERS OF SOME KIND OF MANDATES IS THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE SAME GROUP THAT HAS PAID FOR MILLIONS OF DOLLARS IN ADS PUMMELING THE CLINTON PLAN ON OTHER ISSUES WILLIS GRADISON MR THOMAS'S PREDECESSOR AS THE RANKING MEMBER OF THE HEALTH PANEL AND NOW IS THE INSURANCE ASSOCIATION'S REPRESENTATIVE WAS AMONG THE INDUSTRY OFFICIALS AT THE GOP RETREAT LAST WEEK AND THOUGH HE FOUND HIMSELF IN CONFLICT AT TIMES WITH ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE CO OF AMERICA WHICH PULLED OUT OF THE ASSOCIATION EARLIER THIS YEAR MR GRADISON ARGUED THE GOP GOAL OF PORTABILITY CAN'T TRULY BE ACHIEVED WITHOUT UNIVERSAL COVERAGE 9403070075 940307 BUSINESS BRIEF TURNER CORP FIRM POSTS QUARTERLY LOSS REVAMPING CHARGES CITED TURNER CORP REPORTED A 9 MILLION LOSS FOR THE FOURTH QUARTER AS A RESULT OF RESTRUCTURING CHARGES AND AN INCREASE IN RESERVES RELATED TO ITS REAL ESTATE PROPERTIES THE CONSTRUCTION COMPANY SAID IN NEW YORK THAT THE FOURTHQUARTER LOSS EQUALED 183 A SHARE COMPARED WITH A PROFIT OF 11 MILLION OR 11 CENTS A SHARE A YEAR AGO THE 1993 QUARTER INCLUDED AN 85 MILLION PRETAX RESTRUCTURING CHARGE AND A 38 MILLION INCREASE IN ITS RESERVES FOR DISPOSAL OF REAL ESTATE PROPERTIES REVENUE FELL TO 117 MILLION FROM 177 MILLION TURNER DIDN'T RELEASE DETAILS OF THE RESTRUCTURING PLANS IT HAS REDUCED ITS WORK FORCE BY 24 SINCE 1989 TO 2500 BY THE END OF 1993 TURNER SAID IT EXPECTS THE CONSTRUCTION MARKET TO RISE ONLY SLIGHTLY THIS YEAR 9403070072 940307 CREDIT MARKETS AS YIELDS CLIMB WILL TRADERS BITE SKEPTICS STILL ABOUND BUT FIDELITY MANAGER IS TAKING THE PLUNGE BY LESLIE SCISM AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL A FEW MONTHS BACK IT WAS THE ODDECONOMISTOUT WHO PREDICTED A 7 TREASURY BOND YIELD IN 1994 BUT NOW A 7 YIELD SEEMS JUST AROUND THE CORNER AND WHAT'S HARD TO PREDICT IS THIS WILL ANYBODY BUY IT DESPITE WHAT SOME SAY IS A BARGAIN PRICE FOR LONGTERM GOVERNMENT BONDS MANY BIG INVESTORS WERE SELLERS LAST WEEK AND THERE'S FRESH EVIDENCE THAT SMALL INVESTORS ARE JOINING THEIR RANKS MUTUALFUND INVESTORS WITHDREW 598 MILLION FROM GOVERNMENTBOND FUNDS IN THE WEEK THROUGH WEDNESDAY SAYS AMG DATA SERVICES OF ARCATA CALIF THAT PACE COULD QUICKEN AS SMALL INVESTORS GET FEBRUARY MUTUALFUND STATEMENTS SHOWING REDUCED VALUES FOR THEIR BONDFUND SHARES BUT A FEW BIG MONEY MANAGERS ARE TAKING THE PLUNGE BACK INTO THE MARKET AND THE RECENT BUYERS INCLUDE ONE OF THE BIGGEST PLAYERS THE MUTUALFUND GIANT FIDELITY INVESTMENTS I HAVE FOUND IT VERY DIFFICULT TO MAKE MONEY PLAYING THE TRENDS SAYS CURT HOLLINGSWORTH WHO MANAGES SEVEN FIDELITY BOND FUNDS WITH COMBINED ASSETS OF 3 BILLION WE'VE MADE THE BET THAT INTEREST RATES WILL COME DOWN AGAIN WE JUST DON'T KNOW WHEN THE UNCERTAINTY DOESN'T FAZE FIDELITY GIVEN CURRENT ECONOMIC FUNDAMENTALS WE'LL BE MORE AGGRESSIVE BUYERS AS INTEREST RATES MOVE HIGHER AND HIGHER MR HOLLINGSWORTH SAYS FRIDAY THE BOND MARKET SEEMED TO BE STABILIZING THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND INCHED UP TO 92 18/32 A GAIN OF 2/32 THE YIELD WAS 683 UNCHANGED FROM THURSDAY BUT LOWER THAN THE 69 HIT IN INTRADAY TRADING EARLIER IN THE WEEK FOR THE ENTIRE WEEK THE PRICE OF THE LONGTERM TREASURY BOND FELL 2 1/8 POINTS OR 2125 FOR EACH 1000 OF BONDS RATES CERTAINLY COULD MOVE HIGHER FEW BOND INVESTORS ARE WILLING TO SUGGEST THAT THE ROUGH RIDE IS OVER AT A CONFERENCE LAST WEEK IN ORLANDO FLA ORGANIZED BY THE PUBLIC SECURITIES ASSOCIATION AN INDUSTRY GROUP QUERIES ABOUT THE STATUS OF THE NATION'S BOND MARKET WERE MET WITH WEARY LOOKS I DON'T KNOW THAT THE WORST IS OVER SAYS NATHAN J KORNFELD MANAGING DIRECTOR OF RISK MANAGEMENT IN THE FIXEDINCOME DIVISION AT LEHMAN BROTHERS INC HE DOES DESCRIBE THE PERFORMANCE OF THE BOND MARKET DURING THE LATTER PART OF LAST WEEK AS HEARTENING BUT MAINLY BECAUSE PRICES DIDN'T PLUNGE AS MUCH AS EARLIER IN THE WEEK THE MASSIVE SELLING BY PRIVATEINVESTOR HEDGE FUNDS AND OTHER SPECULATIVE INVESTORS LOOKING TO UNWIND UNPROFITABLE LEVERAGED POSITIONS MAY BE OVER NOW MR KORNFELD SAYS NOW THE BIG RISK IS SALES BY INDIVIDUAL INVESTORS IF THEY REDEEM THEIR MUTUALFUND SHARES EN MASSE DISTURBED BY THE LOWER VALUES REVEALED IN THE MONTHLY STATEMENTS MONEY MANAGERS COULD BE FORCED TO SELL DEBT SECURITIES TO CASH THEM OUT AND THAT COULD SEND THE BOND MARKET INTO ANOTHER TAILSPIN IT'S FEAR OF SUCH REDEMPTIONS THAT HAS KEPT MANY MONEY MANAGERS FROM BUYING AS BOND PRICES HAVE CHEAPENED OF LATE AND SOME SUCH AS VAN KAMPEN MERRITT A CHICAGO MUTUAL FUND COMPANY HAVE ALREADY SOLD SOME BONDS FOR PROFITTAKING AND TO BUILD UP A CASH RESERVE SAYS PETER HEGEL A VAN KAMPEN SENIOR VICE PRESIDENT CERTAINLY MUTUALFUND MANAGERS LIKE US ARE UNCLEAR ABOUT THE FUTURE ARE WE GOING TO START SEEING REDEMPTIONS MR HEGEL SAYS YOU HAVE TO BE FEARFUL OF THAT THE OUTFLOW OF 598 MILLION FROM GOVERNMENTBOND MUTUAL FUNDS COMES FROM MUTUAL FUNDS THAT REPORT TO AMG DATA SERVICES WEEKLY INCLUDED ARE FUNDS HOLDING JUST TREASURYS AND THOSE HOLDING TREASURYS AND GOVERNMENTBACKED DEBT IT WAS THE FOURTH CONSECUTIVE WEEKLY OUTFLOW FROM THOSE FUNDS AND THE LARGEST IN THOSE WEEKS ALSO HARD HIT WERE JUNKBOND FUNDS BUT AMG'S NUMBERS INDICATE THAT INVESTMENTGRADE CORPORATE BOND FUNDS ACTUALLY SAW SIGNIFICANT INFLOWS IN THE LATEST WEEK AT FIDELITY MR HOLLINGSWORTH'S GOVERNMENT SECURITIES FUND SHRANK IN THE PAST WEEK TO 732 MILLION IN ASSETS FROM 759 MILLION THE WEEK BEFORE REFLECTING BOTH REDEMPTIONS AND DECREASED ASSET VALUE MR HOLLINGSWORTH SAYS HE'S BUYING 30YEAR TREASURYS BECAUSE HE BELIEVES THE YIELD MORE THAN COMPENSATES INVESTORS FOR INFLATION HIS THEORY IS THAT INFLATION IS TAMER THAN INVESTORS GENERALLY BELIEVE HE NOTES FOR INSTANCE THAT UNIT LABOR COSTS A BLEND OF LABOR COSTS AND PRODUCTIVITY HAVE CONTINUED TO DROP THE LONGTERM TREASURY BOND IS ATTRACTIVE ABOVE 575 HE SAYS AND FIDELITY HAS FELT THAT WAY FOR SIX MONTHS SINCE MIDOCTOBER HE HAS ADDED A NET 165 MILLION IN LONGTERM TREASURYS TO THE FUND IN THE PAST WEEK THE AVERAGE MATURITY OF THE FUND'S BONDS HAS GROWN TO 1619 YEARS UP FROM 1576 PAUL KUHN PRESIDENT OF BRADFORD INVESTMENT MANAGEMENT A NASHVILLE AFFILIATE OF BROKERAGE FIRM JC BRADFORD & CO ALSO IS A BUYER OF DEBT SECURITIES BUT WE'RE CHICKENS WHEN IT COMES TO THE MORE VOLATILE 30YEAR BOND HE SAYS HIS FIRM ADVISES PRIVATE AND INSTITUTIONAL CLIENTS TO BUY DEBT WITH MATURITIES OF AS MUCH AS 12 YEARS JAMES J COONER SENIOR VICE PRESIDENT OF TAXEXEMPT BOND MANAGEMENT AT BANK OF NEW YORK HAS RECENTLY BEEN BUYING MUNICIPAL BONDS MATURING IN SIX TO EIGHT YEARS MANY OF HIS CLIENTS ARE WEALTHY INDIVIDUALS LOOKING TO SHELTER SAVINGS FROM TAXES MR COONER SAYS HE HAS RECEIVED MANY CALLS FROM SUCH CLIENTS IN THE PAST WEEK AS THE BOND MARKET PLUNGED BUT MOST AREN'T PANICKING IN FACT MR COONER IS PREDICTING A RALLY IN MUNICIPAL BONDS BECAUSE IN THE NEXT SIX WEEKS MORE PEOPLE ARE GOING TO BELLYUP TO THE BAR SIGN 1040 FORMS AND REALIZE THEIR TAXES HAVE RISEN THAT DEMAND AND A BIG SLOWDOWN IN NEW ISSUANCE OF MUNICIPAL BONDS SHOULD PUMP UP PRICES HE SAYS SEVERAL ACTIVELY TRADED LONGTERM MUNI BOND ISSUES WERE YIELDING BETWEEN 553 AND 559 FRIDAY AFTER A WILD MORNING RIDE AS INVESTORS SIFTED THROUGH CONFUSING FEBRUARY EMPLOYMENT DATA BOND PRICES ENDED MIXED THE 6 1/4 30YEAR TREASURY BOND BESTED THE REST OF THE MARKET EDGING UP 2/32 TO 92 18/32 TO YIELD 683 THE SAME YIELD AS ON THURSDAY BUT THE YIELD ON THE 10YEAR TREASURY ROSE TO 636 FROM 633 THE 10YEAR ISSUE'S PRICE FELL TO 9612 FROM 9617 TRADING HAS BEEN MORE SANE TODAY FRIDAY THAN IT HAS BEEN FOR A WHILE SAID WARD MCCARTHY ECONOMIST WITH STONE & MCCARTHY RESEARCH ASSOCIATES INC THE CALM AFTER THE STORM COULD MEAN THE MARKET HAS REACHED A POINT WHERE INVESTORS MIGHT BE READY TO PUSH PRICES BACK UP HE SAID BUT THE MORNING WAS NERVERACKING A 217000 RISE IN FEBRUARY NONFARM PAYROLLS INITIALLY TOUCHED OFF A WAVE OF SELLING THAT WAS SOON REINED IN AS ECONOMISTS EXAMINED THE DATA MORE CLOSELY THE OVERALL RISE WAS LARGER THAN EXPECTED ECONOMISTS WERE LOOKING FOR A BOOST CLOSER TO 139000 BUT UNUSUALLY SEVERE WEATHER THROUGHOUT MUCH OF THE COUNTRY WAS SAID TO HAVE DISTORTED THE DATA ALSO AS ECONOMIST DOUG SCHINDEWOLF OF SMITH BARNEY SHEARSON INC NOTED THE DATA WASN'T UNIVERSALLY POSITIVE THE AVERAGE WORKWEEK FOR INSTANCE DROPPED BY 05 HOURS INDICATING A DRAG ON ECONOMIC GROWTH IT'S NOT A CLEARCUT STRONG REPORT HE SAID BUT HE ADDED THE DATA WARN OF ENOUGH ECONOMIC STRENGTH FOR THE FEDERAL RESERVE TO JUSTIFY TIGHTENING MONETARY POLICY BUT SPECULATION THAT THE FED WOULD TIGHTEN QUIETED IMMEDIATELY AFTER THE FED INJECTED RESERVES IN THE BANKING SYSTEM THROUGH A 15 BILLION CUSTOMER REPURCHASE AGREEMENT AT ITS USUAL 1130 AM EST INTERVENTION PERIOD 9403070071 940307 BUSINESS BRIEF PROVIDENT BANKSHARES CORP STERLING ACQUISITION DERAILS AFTER DUEDILIGENCE REVIEW PROVIDENT BANKSHARES CORP BALTIMORE SAID IT ENDED ACQUISITION NEGOTIATIONS WITH STERLING BANCORP FOLLOWING A DUEDILIGENCE REVIEW ON DEC 15 PROVIDENT SIGNED A LETTER OF INTENT TO ACQUIRE STERLING A BALTIMORE BANK WITH ASSETS OF 70 MILLION THE STOCK TRANSACTION HAD AN INDICATED VALUE OF ABOUT 108 MILLION PROVIDENT WITH ASSETS OF ABOUT 18 BILLION SAYS IT DISCOVERED DURING ITS DUEDILIGENCE INVESTIGATION THAT STERLING'S BUSINESS WAS NOT WHAT WE HAD BEEN LED TO BELIEVE WHEN STERLING INITIATED MERGER DISCUSSIONS PROVIDENT DIDN'T ELABORATE IN RESPONSE STERLING SAID IT FILED A LAWSUIT IN A STATE COURT IN BALTIMORE SEEKING TO CONTINUE THE ACQUISITION CONTENDING PROVIDENT VIOLATED ITS AGREEMENT 9403070070 940307 STATE REGULATORS CLEAR FLORIDA PLAN TO FINE MET LIFE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL DENVER THE STATE INSURANCE COMMISSIONERS' GROUP APPROVED FLORIDA'S PROPOSAL TO FINE METROPOLITAN LIFE INSURANCE CO 20 MILLION TO SETTLE CHARGES OF QUESTIONABLE SALES PRACTICES BUT THE INSURANCE COMPANY HAS YET TO ACCEPT THE PLAN IF MET LIFE REJECTS IT EACH STATE WOULD BE FORCED TO TAKE SEPARATE ACTION AGAINST THE COMPANY WHICH COULD DELAY REPAYMENT TO THE 60000 POLICYHOLDERS WHO WERE ALLEGEDLY MISLED BY MET LIFE AGENTS INTO BUYING LIFE INSURANCE UNDER THE PRETENSE THAT THEY WERE BUYING A RETIREMENT ACCOUNT THE PROPOSAL ALSO ORDERS NEW YORKBASED MET LIFE TO PAY BACK ANY POLICYHOLDER WHO MAY HAVE BEEN VICTIMIZED BY THE ALLEGED MISREPRESENTATION MET LIFE WHICH HAS ALREADY VOLUNTEERED TO PAY BACK ANY DEFRAUDED POLICYHOLDER COULD PAY AS MUCH AS 76 MILLION IN THAT ACTION AT THE QUARTERLY MEETING OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS YESTERDAY FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER RELEASED A SCATHING REPORT ABOUT MET LIFE'S ACTIVITIES IN WHICH HE BLASTS THE COMPANY'S OSTRICH APPROACH TO THE PROBLEM SENIOR MET LIFE OFFICIALS KNEW MORE THAN A YEAR BEFORE FLORIDA BEGAN AN INVESTIGATION THAT THE COMPANY'S TAMPA OFFICE VIOLATED STATE RULES THAT GOVERN SALES PRACTICES MET LIFE OFFICIALS SAID YESTERDAY THE COMPANY HAS NOT YET DECIDED WHETHER TO AGREE TO THE SETTLEMENT OFFER WE'RE WEIGHING OUR OPTIONS SAID MET LIFE SPOKESMAN CHARLES SAHNER WHO CRITICIZED THE SIZE OF THE FINE WHICH IS UNUSUALLY LARGE BY THE STANDARDS OF STATE INSURANCE REGULATORS BUT HE ADDED THE COMPANY REMAINS COMMITTED TO A MULTISTATE SOLUTION MET LIFE OFFICIALS ARE TO MEET HERE TODAY WITH REGULATORS THE QUESTIONABLE PRACTICES WERE FIRST DETECTED AND WERE MOST PERVASIVE IN FLORIDA WHERE MET LIFE'S TAMPA OFFICE DEVELOPED A MASSIVE NATIONAL SALES PROGRAM AIMED AT REGISTERED NURSES BUT EVIDENCE OF ILLEGAL ACTIVITIES SHOWED UP IN NEARLY EVERY STATE STATE LAWS REQUIRE THAT AGENTS DISCLOSE THAT THEY ARE SELLING INSURANCE AND THAT LIFE INSURANCE CAN'T BE MARKETED AS SOLELY A SAVINGS VEHICLE MR GALLAGHER'S REPORT SINGLES OUT MET LIFE EXECUTIVE VICE PRESIDENT ROBERT CRIMMINS WHO IS IN CHARGE OF INSURANCE SALES TO INDIVIDUALS AS HAVING KNOWN ABOUT THE PROBLEMS AS EARLY AS MARCH 1991 MET LIFE DEFENDED MR CRIMMINS YESTERDAY BY SAYING THAT HAVING A GENERAL KNOWLEDGE OF A PROBLEM ISN'T THE SAME AS KNOWING THE EXTENT OF A SITUATION AND THE DETAILS COMMISSIONERS WERE DIVIDED ON THE SIZE OF THE FINE BUT COMPROMISED BY AGREEING TO 125 MILLION IN PENALTIES TO BE DIVIDED AMONG THE STATES AND ANOTHER 75 MILLION FOR UNSPECIFIED PURPOSES 9403070069 940307 AMAX GOLD INC OMITS QUARTERLY DIVIDEND ENGLEWOOD COLO AMAX GOLD INC WHICH HASN'T BEEN MAKING MONEY SAID ITS BOARD ELIMINATED THE COMPANY'S REGULAR QUARTERLY DIVIDEND OF TWO CENTS A SHARE MARK LETTES CHIEF FINANCIAL OFFICER SAID AMAX WILL PUT THE MONEY SAVED 37 MILLION A YEAR TOWARD AN INVESTMENT OF ABOUT 310 MILLION IN NEW GOLDMINING PROJECTS IN ALASKA AND CHILE WE'RE TRYING TO GET TO THE NEXT GENERATION OF PROJECTS AND THAT'S GOING TO REQUIRE A FAIRLY SIZABLE CAPITAL INVESTMENT HE SAID THE DIVIDEND ELIMINATION IS PART OF A BROADER COSTREDUCTION PROGRAM MR LETTES ADDED THE COMPANY RECENTLY MOVED ITS OFFICE TO CUT EXPENSES REDUCED STAFF AT ITS SLEEPER MINE IN NEVADA BY 10 AND PLANS FURTHER COSTCUTTING HE SAID THE GOLD PRODUCER HAD A LOSS OF 1042 MILLION OR 134 A SHARE IN 1993 AFTER 877 MILLION IN PRETAX ASSET WRITEDOWNS AND A 152 MILLION CHARGE BECAUSE OF AN ACCOUNTING CHANGE IN 1992 THE COMPANY EARNED 115 MILLION OR 16 CENTS A SHARE AFTER A 15 MILLION CHARGE FROM AN ACCOUNTING CHANGE AMAX GOLD SHARES CLOSED FRIDAY AT 6875 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9403070068 940307 TECHNOLOGY & HEALTH CHARTER MEDICAL MAY PURCHASE 50 HOSPITALS BY RHONDA L RUNDLE AND HELENE COOPER STAFF REPORTERS OF THE WALL STREET JOURNAL NATIONAL MEDICAL ENTERPRISES INC AND CHARTER MEDICAL CORP SAID THEY ARE IN SERIOUS NEGOTIATIONS FOR CHARTER'S POSSIBLE PURCHASE OF ABOUT 50 PSYCHIATRIC HOSPITALS FROM NATIONAL MEDICAL ANALYSTS SAID THE HOSPITALS COULD COMMAND AS MUCH AS 200 MILLION THE FACILITIES REPRESENT THE BULK OF NATIONAL MEDICAL'S 61 PSYCHIATRIC HOSPITALS WHICH HAVE OPERATED UNDER A CLOUD IN RECENT YEARS NATIONAL MEDICAL PAID HUNDREDS OF MILLIONS OF DOLLARS TO SEVERAL INSURANCE COMPANIES LAST YEAR TO SETTLE CHARGES OF BILLING FRAUD AND MISTREATMENT OF PATIENTS LAST AUGUST THE FEDERAL BUREAU OF INVESTIGATION RAIDED MANY OF THE HOSPITALS AND NATIONAL MEDICAL'S SANTA MONICA CALIF HEADQUARTERS TO GATHER EVIDENCE OF WHAT THE AGENCY DESCRIBED AS SUSPECTED CRIMINAL MISCONDUCT NATIONAL MEDICAL HAS SAID IT IS IN TALKS WITH THE JUSTICE DEPARTMENT TO SETTLE THOSE ALLEGATIONS NATIONAL MEDICAL PUT THE PSYCHIATRIC OPERATIONS UP FOR SALE LAST YEAR AND HAS SAID IT WANTS TO FOCUS ON ITS ACUTECARE HOSPITALS IN THE SECOND QUARTER ENDED NOV 30 THE COMPANY TOOK A 2874 MILLION CHARGE RELATED TO DISPOSAL OF THE PSYCHIATRIC OPERATIONS BASED ON THAT WRITEDOWN AND DISCUSSIONS WITH THE COMPANY IT APPEARS THEY MIGHT GET 200 MILLION FOR THE HOSPITALS INCLUDING ABOUT 30 MILLION TO 40 MILLION OF WORKING CAPITAL SAID EDWIN H GORDON AN ANALYST AT MORGAN STANLEY & CO E MAC CRAWFORD CHARTER'S CHIEF EXECUTIVE OFFICER SAID THE NATIONAL MEDICAL HOSPITALS WOULD FIT IN NICELY WITH CHARTER'S NEW CORPORATE STRATEGY OF EXPANDING ITS PATIENT BASE AND ENTERING NEW MARKETS THOSE FACILITIES ARE WELLLOCATED HE SAID THEY'LL GIVE US ENTRY POINTS INTO SEVERAL MARKETS CHARTER BACK FROM THE BRINK OF COLLAPSE JUST THREE YEARS AGO PLANS TO RECLAIM ITS DOMINANT ROLE IN THE PSYCHIATRIC HOSPITAL INDUSTRY THROUGH A TWOPRONG STRATEGY OF ENTERING NEW MARKETS AND EXPANDING THE SERVICES IT OFFERS TO THAT END MR CRAWFORD SAID ONE OF THE NATIONAL MEDICAL FACILITIES THAT CHARTER IS EYEING IS A PHYSICIAN GROUP SUCH GROUPS OF PSYCHIATRISTS WHO SEE PATIENTS WHO DON'T NEED INHOSPITAL CARE WOULD ALLOW CHARTER TO ENTER THE SCENE MUCH EARLIER IN A PATIENT'S LIFE CHARTER BASED IN MACON GA OPERATES 75 PSYCHIATRIC HOSPITALS IN THE US AND EUROPE INVESTORS REACTED POSITIVELY TO NEWS OF THE NEGOTIATIONS NATIONAL MEDICAL SHARES ROSE 875 CENTS TO 16375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE CHARTER SHARES JUMPED 150 TO 24 9403070067 940307 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP FIVE NOTEBOOK COMPUTERS DUE TO BE UNVEILED TODAY COMPAQ COMPUTER CORP TODAY IS EXPECTED TO ANNOUNCE FIVE NEW NOTEBOOK COMPUTERS TO REPLACE ITS TWOYEAROLD LINE OF HIGHEND PORTABLES THE HOUSTON COMPANY'S NEW LTE ELITE LINE REPLACES AN LTE LITE FAMILY THAT HAS IN THE PAST TWO YEARS GROWN TO BECOME COMPAQ'S PORTABLE FLAGSHIP SHARON FRANCIA A PORTABLEPRODUCT MANAGER AT THE COMPANY SAID COMPAQ'S LITE FAMILY ACCOUNTED FOR HALF OF ALL THE COMPANY'S NOTEBOOK SHIPMENTS IN NORTH AMERICA LAST YEAR THE NEW MACHINES PRICED FROM 3299 TO 6500 INCLUDE UPDATED NETWORKING FEATURES ADDED MEMORY AND MORE POWERFUL PROCESSORS THE TOTAL WEIGHT OF THE MACHINES IS ONLY ABOUT 68 POUNDS THANKS IN PART TO COMPAQ'S ELIMINATION OF THE BULKY AC ADAPTER BOX THAT ACCOMPANIES MOST NOTEBOOK COMPUTERS IN THE NEW MACHINES THE ELECTRICITY ADAPTER WHICH CHARGES THE COMPUTER'S BATTERY IS INTEGRATED INTO THE PRODUCT SEPARATELY COMPAQ INTRODUCED AN ADDITION TO ITS PROSIGNIA FAMILY OF ENTRYLEVEL COMPUTER SERVERS THE PROSIGNIA VS PRICED AS LOW AS SOME DESKTOP COMPUTERS AT 1730 AND UP IS DESIGNED TO COORDINATE THE WORK OF GROUPS OF PERSONAL COMPUTERS AT SMALL BUSINESSES OR BRANCH OFFICES 9403070066 940307 AS WHITEWATER INQUIRY GROWS BROADER CLINTON SEEKS NEW WHITE HOUSE COUNSEL BY BRUCE INGERSOLL AND ELLEN JOAN POLLOCK STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON FACING ONE OF HIS MOST TRYING WEEKS IN OFFICE MUST SEND 10 ADMINISTRATION OFFICIALS BEFORE A FEDERAL GRAND JURY AND FIND A REPLACEMENT FOR THE WHITEWATER AFFAIR'S FIRST CASUALTY WHITE HOUSE COUNSEL BERNARD NUSSBAUM MOREOVER REPUBLICANS PLAN TO CALL WITNESSES BEFORE CONGRESSIONAL COMMITTEES TO TESTIFY ABOUT THE TANGLED WHITEWATER AFFAIR PROMINENT HOUSE AND SENATE DEMOCRATS PRIVATELY PREDICTED THAT THE HEARINGS THEY ONCE OPPOSED ARE ALL BUT INEVITABLE MR NUSSBAUM AGREED TO RESIGN IN THE FACE OF MOUNTING CRITICISM OVER HIS CONTACTS WITH FEDERAL OFFICIALS WHO ARE INVESTIGATING THE CLINTONS' WHITEWATER DEVELOPMENT CO PARTNERSHIP WITH THE OWNER OF A FAILED ARKANSAS SAVINGS AND LOAN MR NUSSBAUM'S DEPARTURE CAME AFTER SPECIAL COUNSEL ROBERT FISKE GREATLY EXPANDED THE SCOPE OF HIS INDEPENDENT WHITEWATER INVESTIGATION TO INCLUDE THE MEETINGS BETWEEN WHITE HOUSE AIDES AND TREASURY DEPARTMENT OFFICIALS WITH THE OFFICIALS SUBPOENAED TO APPEAR THURSDAY BEFORE A GRAND JURY THE FOCUS OF MR FISKE'S INQUIRY SHIFTS FROM THE FIRST COUPLE'S PAST DEALINGS WITH THEIR WHITEWATER PARTNER JAMES MCDOUGAL TO THE CONDUCT OF SENIOR ADMINISTRATION OFFICIALS SEEMINGLY BENT ON WHITEWATERRELATED DAMAGE CONTROL FOR THE WHITE HOUSE TO RESTORE AN AURA OF NORMALITY A SUCCESSOR TO MR NUSSBAUM WHO LEAVES APRIL 5 MUST BE FOUND QUICKLY WHITE HOUSE OFFICIALS HAVE BEGUN SOUNDING OUT CANDIDATES IN SEARCH OF A SAVVY POLITICALLY SEASONED WASHINGTON LAWYER IDEALLY IN THE MOLD OF LLOYD CUTLER PRESIDENT CARTER'S COUNSEL THEY WANT SOMEBODY WHO WOULD DEFEND THE PRESIDENT'S INTERESTS AGGRESSIVELY WITHOUT OVERLOOKING POLITICAL AND ETHICAL APPEARANCES WHITE HOUSE INSIDERS ARE FURIOUS WITH MR NUSSBAUM FOR FAILING TO KEEP SUCH CONSIDERATIONS IN MIND IN HIS ZEAL TO PROTECT THE CLINTONS FROM WHITEWATER'S UNDERTOW LEADING CANDIDATES INCLUDE HARRY MCPHERSON A LEADING LIGHT IN WASHINGTON'S DEMOCRATIC LEGAL ESTABLISHMENT WHO SERVED AS COUNSEL TO PRESIDENT LYNDON JOHNSON CHARLES RUFF ANOTHER PROMINENT WASHINGTON LAWYER WHO WAS CONSIDERED FOR THE DEPUTY ATTORNEY GENERAL POST AND CHARLES RENFREW A FORMER FEDERAL JUDGE WHO SERVED IN THE CARTER JUSTICE DEPARTMENT VICE PRESIDENT AL GORE APPEARING ON NBC NEWS' MEET THE PRESS GAVE NO INDICATION OF WHO THE NEXT WHITE HOUSE COUNSEL WOULD BE HE DISMISSED SUGGESTIONS THAT THE CLINTON PRESIDENCY IS IMPERILED BY WHITEWATER ASSERTING THERE'S A DIFFERENCE IN THE WAY THE CONTROVERSY IS VIEWED IN WASHINGTON AND THE WAY IT'S VIEWED IN THE COUNTRY MOREOVER MR GORE SAID HE SEES NO CREDIBLE EVIDENCE OF ANY WRONGDOING ON THE PART OF MR NUSSBAUM AND OTHERS I DON'T THINK IT WAS HANDLED IN THE BEST WAY HE SAID BUT I BELIEVE VERY STRONGLY NOTHING WRONG WAS DONE REPUBLICAN LAWMAKERS NEVERTHELESS ARE CERTAIN TO DIG DEEPER INTO THE WHITEWATER CONTROVERSY AT THEIR FIRST OPPORTUNITY HOUSE SPEAKER THOMAS FOLEY D WASH HAS PRIVATELY ADVISED DEMOCRATIC COMMITTEE CHAIRMEN THAT UNDER HOUSE RULES THEY MUST LET THE REPUBLICANS CALL THEIR OWN WITNESSES THE DEMOCRATIC LEADERSHIP EXPECTS THE WHITEWATER MATTER TO BE RAISED AT FUTURE HEARINGS BEFORE THE HOUSE BANKING COMMITTEE AND POSSIBLY THE SMALL BUSINESS COMMITTEE REP JAMES LEACH OF IOWA THE RANKING REPUBLICAN ON THE HOUSE BANKING PANEL SAID IN AN INTERVIEW THAT HE AND HIS GOP COLLEAGUES PLAN TO CALL QUITE A NUMBER OF WITNESSES FOR A FULL DAY THIS MONTH THE COMMITTEE WILL HOLD OVERSIGHT HEARINGS ON THE PERFORMANCE OF RESOLUTION TRUST CORP THE THRIFT CLEANUP AGENCY THAT CONDUCTED THE INITIAL INQUIRY INTO MADISON GUARANTY SAVINGS & LOAN A FAILED THRIFT ONCE OWNED BY MR MCDOUGAL A SIMILAR HEARING WAS HELD RECENTLY BY THE SENATE BANKING PANEL IT'S QUITE CONCEIVABLE THAT SOME OF THE SUBPOENAED OFFICIALS ALSO WILL BE SUMMONED TO CAPITOL HILL BESIDES MR NUSSBAUM THOSE RECEIVING SUBPOEANAS TO TESTIFY BEFORE THE GRAND JURY WERE DEPUTY CHIEF OF STAFF HAROLD ICKES HILLARY RODHAM CLINTON'S CHIEF OF STAFF MARGARET WILLIAMS WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN SENIOR ADVISER BRUCE LINDSEY LISA CAPUTO MRS CLINTON'S PRESS SECRETARY DEPUTY TREASURY SECRETARY ROGER ALTMAN AND THREE OF HIS CURRENT OR FORMER SENIOR AIDES ANOTHER SUBPOENA REQUIRES THE WHITE HOUSE TO PRODUCE ALL DOCUMENTS OR MEMOS ON ANY MEETINGS CONVERSATIONS OR CONTACTS BETWEEN ANY WHITE HOUSE STAFF MEMBERS AND OFFICIALS OF THE TREASURY OR OF THE RESOLUTION TRUST CORP WHITE HOUSE STAFF MEMBERS WERE REMINDED BY MEMO THAT THEY COULD BE CHARGED WITH OBSTRUCTION OF JUSTICE IF THEY DESTROYED ANY PERTINENT MATERIAL IN HIS RESIGNATION LETTER MR NUSSBAUM STAUNCHLY DEFENDED HIS PERFORMANCE AND DERIDED HIS CRITICS AS THOSE WHO DO NOT UNDERSTAND NOR WISH TO UNDERSTAND THE ROLE AND OBLIGATIONS OF A LAWYER BUT SEVERAL PROMINENT LAWYERS INCLUDING FORMER WHITE HOUSE COUNSELS SAID MR NUSSBAUM APPEARS TO HAVE MISUNDERSTOOD A FUNDAMENTAL ASPECT OF HIS JOB THAT HIS CLIENT WASN'T BILL CLINTON BUT THE PRESIDENCY IT IS AN INSTITUTIONAL REPRESENTATION SAID ARTHUR CULVAHOUSE WHITE HOUSE COUNSEL DURING THE REAGAN YEARS YOU DO NOT REPRESENT THE PRESIDENT IN HIS INDIVIDUAL CAPACITY YOU REPRESENT THE OFFICE OF THE PRESIDENCY MR NUSSBAUM WAS PRESENT AT THREE WHITE HOUSE MEETINGS WITH TREASURY OFFICIALS AT SESSIONS LAST SEPT 29 AND OCT 14 TREASURY GENERAL COUNSEL JEAN HANSON AND OTHER TREASURY OFFICIALS BRIEFED WHITE HOUSE OFFICIALS ON POSSIBLE RTC CRIMINAL REFERRALS AGAINST MADISON THE RTC'S EVENTUAL REQUEST FOR A JUSTICE DEPARTMENT INVESTIGATION REFERRED TO THE CLINTONS AS POSSIBLE BENEFICIARIES OF SUSPECTED WRONGDOING AT THE THRIFT THE MATTER IS NOW PART OF THE INVESTIGATION OF MR FISKE THE SPECIAL COUNSEL MR NUSSBAUM'S CRITICS SAID THE MEETINGS CREATED THE APPEARANCE OF IMPROPER WHITE HOUSE MEDDLING IN LAW ENFORCEMENT AND REGULATORY MATTERS AND PRESIDENT CLINTON DISAVOWED THEM OVER THE WEEKEND NEW YORK SEN ALFONSE D'AMATO THE RANKING REPUBLICAN ON THE SENATE BANKING COMMITTEE WROTE TO MR ALTMAN ASKING WHY MS HANSON DIDN'T DISCLOSE HER PARTICIPATION IN THE TWO MEETINGS LAST FALL WHEN THE SUBJECT OF SUCH MEETINGS CAME UP AT A FEB 24 SENATE HEARING MS HANSON WAS PRESENT AT THAT HEARING BUT WHEN MR ALTMAN WAS ASKED ABOUT ANY MEETINGS WITH THE WHITE HOUSE INVOLVING MADISON HE CITED ONLY A MEETING EARLY IN FEBRUARY AT WHICH MS HANSON WAS ALSO PRESENT A TREASURY SPOKESMAN YESTERDAY SAID THAT MR ALTMAN REPLIED HONESTLY DURING THE HEARING AND THAT HE HADN'T THEN KNOWN OF LAST FALL'S MEETINGS MS HANSON COULDN'T BE REACHED FOR COMMENT MR NUSSBAUM NEVER SEEMED TO UNDERSTAND THAT THE LEGAL TACTICS THAT WON HIM SO MANY ADMIRERS DURING HIS CAREER AS A NEW YORK LITIGATOR DIDN'T PLAY WELL IN THE POLITICAL ARENA EXCEPT FOR A BRIEF STINT INVESTIGATING WATERGATE FOR THE HOUSE JUDICIARY COMMITTEE WHERE HE FORGED A CLOSE FRIENDSHIP WITH HILLARY RODHAM CLINTON MR NUSSBAUM SPENT HIS ENTIRE CAREER AT THE MANHATTAN LAW FIRM OF WACHTELL LIPTON ROSEN & KATZ WHERE HE IS EXPECTED TO RETURN NEXT MONTH AND WHERE HE COMMANDED A SALARY OF 18 MILLION IN SOME OF HIS CONTROVERSIAL ACTIONS INCLUDING LIMITING PARK POLICE ACCESS TO MR FOSTER'S OFFICE REMOVING A WHITEWATER FILE IN MR FOSTER'S OFFICE AND GIVING IT TO THE CLINTONS' PRIVATE ATTORNEY OPPOSING THE APPOINTMENT OF A SPECIAL COUNSEL TO INVESTIGATE WHITEWATER AND PARTICIPATING IN THE THREE MEETINGS MR NUSSBAUM SAID HE WAS SIMPLY DOING THE JOB OF A ZEALOUS LAWYER IN NEW YORK LAWYERS AGREED AND REACTED ANGRILY TO HIS OUSTER HE'S BEING SACRIFICED HERE AND IT'S REALLY WRONG SAID ELKAN ABRAMOWITZ A WELLKNOWN CRIMINAL LAWYER WHO RECENTLY REPRESENTED WOODY ALLEN I HAVEN'T TALKED TO A LAWYER WHO THINKS THEY WOULD HAVE DONE ANYTHING DIFFERENTLY BUT IN WASHINGTON WHERE ONE DUTY OF THE COUNSEL IS TO PROTECT THE WHITE HOUSE FROM POLITICAL EMBARRASSMENT MR NUSSBAUM'S ACTIONS CONTRIBUTED TO AN APPEARANCE THAT THE CLINTON WHITE HOUSE WAS COVERING UP OR STONEWALLING IN A RELATED MATTER RTC BILLING RECORDS SHOW THAT WEBSTER HUBBELL A HIGHRANKING JUSTICE DEPARTMENT OFFICIAL HAD BILLED THE GOVERNMENT MORE THAN 37000 ON A CASE INVOLVING MADISON GUARANTY WHILE HE WAS A PARTNER IN THE ROSE LAW FIRM IN LITTLE ROCK THE CASE IS THE FOCUS OF CONFLICTOFINTEREST INVESTIGATIONS BY THE FEDERAL DEPOSIT INSURANCE CORP AND THE RTC MR HUBBELL HEADED THE FDICRTC CASE WHICH INVOLVES AN FDIC LAWSUIT AGAINST FROST & CO MADISON'S FORMER ACCOUNTING FIRM FOR A DEFECTIVE AUDIT THAT FAILED TO DETECT THAT MADISON WAS INSOLVENT THE SUIT WAS LATER TAKEN OVER BY THE RTC WHICH WAS FORMED IN AUGUST 1989 MR HUBBELL WAS AMONG A NUMBER OF ROSE LAWYERS WORKING ON THE CASE A RECENT RTC REPORT SAID THAT ROSE DIDN'T DISCLOSE THAT IN PREVIOUSLY REPRESENTING MADISON IT HAD USED THE FROST AUDIT TO SUPPORT A BID FOR ARKANSAS SECURITIES DEPARTMENT APPROVAL FOR ISSUING STOCK AND ACTING AS A BROKER THE RTC HAS ASKED ITS INSPECTOR GENERAL TO INVESTIGATE THE ROSE FIRM'S DEALINGS WITH THE GOVERNMENT INCLUDING BILLINGS THE HUBBELL BILLINGS SHOWN BY THE RTC DOCUMENTS COVER PERIODS IN 19891991 INCLUDING 22525 FOR 180 HOURS DURING AUGUST 1990 THAT INCLUDED A 20DAY STRETCH WHEN MR HUBBELL BILLED THE FDIC FOR EVERY DAY INCLUDING WEEKENDS OTHER BILLINGS INCLUDED 7972 IN EARLY 1991 AND 3019 IN LATE 1990 ALBERT R KARR CONTRIBUTED TO THIS ARTICLE 9403070065 940307 BUSINESS BRIEF HEALTH SYSTEMS INTERNATIONAL INC MANAGEDCARE FIRM EXPECTS TO REPORT 4THQUARTER LOSS HEALTH SYSTEMS INTERNATIONAL INC EXPECTS TO REPORT A FOURTHQUARTER LOSS OF ABOUT 184 MILLION OR 37 CENTS A SHARE AFTER 297 MILLION OF MERGER EXPENSES ROGER F GREAVES COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER SAID THESE WILL BE THE FIRST CONSOLIDATED RESULTS REPORTED BY HEALTH SYSTEMS THE MANAGEDCARE COMPANY WAS FORMED BY THE MERGER OF QUALMED INC PUEBLO COLO AND CLOSELY HELD HN MANAGEMENT HOLDINGS INC THE PARENT OF HEALTH NET BASED IN WOODLAND HILLS CALIF MR GREAVES SAID COMPARABLE RESULTS FOR THE 1992 QUARTER WEREN'T AVAILABLE THE MERGER EXPENSES INCLUDED PAYMENTS TO INVESTMENT BANKERS AND ATTORNEYS RESULTS WERE FURTHER DEPRESSED BY A DECISION TO CLEAN UP THE BALANCE SHEET MR GREAVES SAID IN AN INTERVIEW FOR THE FULL YEAR HEALTH SYSTEMS EXPECTS TO REPORT NET INCOME OF ABOUT 239 MILLION OR 48 CENTS A SHARE MR GREAVES SAID BEFORE THE MERGER EXPENSES AND UNUSUAL LITIGATION EXPENSES EARNINGS PER SHARE WERE 103 HE SAID 9403070064 940307 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 97 MILLION OF MEDIUMTERM NOTES DUE MARCH 10 1999 PRICED AT PAR TO YIELD 605 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 22 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE MARCH 15 1999 PRICED INITIALLY AT PAR TO YIELD 606 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE MARCH 11 2004 PRICED AT PAR TO YIELD 681 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PHC INC 12 MILLION UNITS PRICED AT 5 EACH THROUGH AMERICORP SECURITIES INC ACCORDING TO THE COMPANY KNOWN ALSO AS PIONEER HEALTHCARE EACH UNIT CONSISTS OF ONE CLASS A COMMON SHARE AND ONE CLASS A WARRANT TO PURCHASE ONE CLASS A COMMON SHARE AT 750 NEW SOUTH AFRICA FUND INC INITIAL OFFERING OF 47 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO CREDIT COMMERCIAL DE FRANCE FRANCE 150 MILLION SWISS FRANCS OF PUBLIC FLOATINGRATE BONDS DUE MARCH 31 1999 PRICED AT 1005 VIA CREDIT SUISSE PAYABLE SEMIANNUALLY AT 00625 POINT BELOW LONDON INTERBANK OFFERED RATE FOR SWISS FRANCS COUPON 4 FIRST 180 DAYS FEES UNDISCLOSED KAUFHOF FINANCE BV AMSTERDAM GERMAN PARENT 100 MILLION MARKS OF EUROBONDS DUE MARCH 30 2004 AT ISSUE PRICE 10178 VIA COMMERZBANK AG COUPON 7 FIRST YEAR YEARS TWO TO SIX SEMIANNUAL COUPON OF 12 BASIS POINTS OVER SIXMONTH MARK LIBOR THEREAFTER COUPON 7 GUARANTOR KAUFHOF HOLDINGS AG FEES 25 LESS 0125 FOR LEAD MANAGER 9403070063 940307 MERRILL LYNCH BROKERS IN PANAMA INDICTED IN LAUNDERING CASE SPECIAL TO THE WALL STREET JOURNAL NEW YORK TWO BROKERS AT MERRILL LYNCH & CO'S PANAMA CITY PANAMA OFFICE HAVE BEEN INDICTED BY A FEDERAL GRAND JURY IN TAMPA FLA IN CONNECTION WITH AN INVESTIGATION OF NARCOTICS MONEYLAUNDERING INDICTED WERE FRANK L GREENE A VICE PRESIDENT AND STEVEN L MILLS AN ACCOUNT EXECUTIVE BOTH WORK FOR MERRILL LYNCH INTERNATIONAL & CO THE INTERNATIONAL ARM OF MERRILL LYNCH NEITHER THE UNIT NOR THE PARENT FIRM HAS BEEN NAMED IN THE INDICTMENTS WHICH WERE UNSEALED LAST MONDAY THE DEFENDANTS WERE AMONG 28 PEOPLE CHARGED WITH CONSPIRING TO LAUNDER PROCEEDS FROM THE SALE OF NARCOTICS THE CONSPIRACY ALLEGEDLY INVOLVED A NETWORK OF DIFFERENT SHELL COMPANIES THAT FUNNELED PROCEEDS FROM COCAINE TRAFFICKING TO OFFSHORE ACCOUNTS IN SOUTH AMERICA NEW YORK AND EUROPE IN RESPONSE TO THE INDICTMENTS MERRILL LYNCH & CO RELEASED A STATEMENT IF THESE CHARGES ARE TRUE WE WOULD BE SHOCKED AND OUTRAGED THAT THIS COULD HAPPEN WITH OUR EMPLOYEES WE HAVE LONG HAD POLICIES AGAINST MONEYLAUNDERING AND WE DO NOT TOLERATE THIS OR ANY OTHER ILLEGAL ACTIVITY THE COMPANY SAID IT HAS LAUNCHED ITS OWN INTERNAL INQUIRY WILL TAKE THE APPROPRIATE ACTIONS BASED ON THAT INQUIRY AND WILL COOPERATE FULLY WITH LAWENFORCEMENT OFFICIALS MR GREENE AND MR MILLS COULDN'T BE REACHED FOR COMMENT ACCORDING TO THE US ATTORNEY'S OFFICE IN TAMPA THE DEFENDANTS FACE A POSSIBLE MAXIMUM FINE OF 500000 AND A THREEYEAR TERM OF SUPERVISED RELEASE THE INDICTMENTS WERE RETURNED AS THE RESULT OF A TWOYEAR UNDERCOVER INVESTIGATION INVOLVING THE JOINT EFFORTS OF THE DRUG ENFORCEMENT ADMINISTRATION INTERNAL REVENUE SERVICE TWO COUNTY SHERIFF OFFICES AND THE TAMPA POLICE 9403070062 940307 BUSINESS BRIEF OCEANEERING INTERNATIONAL INC EDISTO RESOURCES COMPANIES ARE BOUGHT FOR 12 MILLION OCEANEERING INTERNATIONAL INC SAID IT ACQUIRED THE OPERATING UNITS OF AN EDISTO RESOURCES CORP SUBSIDIARY FOR 12 MILLION THE HOUSTON UNDERWATER SERVICES COMPANY SAID IT BOUGHT MULTIFLEX INC MULTIFLEX UK INC AND SPECIALTY WIRE & CABLE CO FROM EDISTO'S MULTIFLEX INTERNATIONAL INC THE COMPANIES WHICH HAVE PLANTS IN TEXAS AND SCOTLAND MAKE ELECTRICAL WIRE SPECIALTY CABLE PRODUCTS AND HIGHPRESSURE HOSES USED IN THE OFFSHORE OIL AND GAS INDUSTRY THE COMPANIES PURCHASED HAD 1993 REVENUE OF ABOUT 29 MILLION 9403070061 940307 BUSINESS BRIEF GIII APPAREL GROUP LTD FIRM SIGNS PACT WITH CHINA FOR JOINT VENTURE THERE GIII APPAREL GROUP LTD SIGNED AN AGREEMENT WITH THE CHINESE GOVERNMENT TO JOINTLY OWN A LEATHER APPAREL FACTORY IN NORTHERN CHINA AND MARKET THE PRODUCTS IN THAT COUNTRY IN NASDAQ MARKET TRADING FRIDAY GIII SHARES ROSE 37 TO 6 A SHARE UP 1625 ON VOLUME OF 362000 SHARES MANY TIMES THE AVERAGE 18000 DAILY VOLUME GIII WILL OWN 39 OF THE FACTORY AND THE REMAINDER WILL BE HELD BY THE CHINESE GOVERNMENT THE AGREEMENT IS EXPECTED TO ULTIMATELY LEAD TO THE OPENING OF JOINTLY OWNED RETAIL STORES IN CHINA THE COMPANY SAID IN NEW YORK GIII MAKES APPAREL UNDER SUCH NAMES AS GIII SIENA AND JL COLEBROOK AND ALSO MAKES LICENSED SPORTS APPAREL AS WELL AS PRIVATELABEL MERCHANDISE FOR THE NINE MONTHS ENDED OCT 31 GIII HAD SALES OF 162 MILLION 9403070060 940307 BUSINESS BRIEF INFINITE MACHINES CORP NEVADA FIRM SAYS IT PLANS TO BUY HGG LASER FARE INFINITE MACHINES CORP SIGNED A LETTER OF INTENT TO ACQUIRE HGG LASER FARE CORP FOR AN UNDISCLOSED AMOUNT OF STOCK LASER FARE IS A PRIVATELY HELD LASER APPLICATIONS COMPANY IN SMITHFIELD RI INFINITE MACHINES BASED IN INCLINE VILLAGE NEV SAID LASER FARE HAD 1993 REVENUE OF ABOUT 33 MILLION INFINITE MACHINES SAID IT EXPECTS THE ACQUISITION TO CLOSE THIS MONTH THE COMPANY ALSO SAID THAT IT PLANS TO OPEN A ROTARY ENGINE DEVELOPMENT FACILITY IN WISCONSIN IN THE SECOND QUARTER AND THAT IT EXPECTS TO BEGIN MARKETING GASOLINEPOWERED ROTARY ENGINES 9403070059 940307 THE OUTLOOK AS FOOD PRICES RISE 1994 CROPS HOLD KEY BY SCOTT KILMAN CHICAGO FOOD PRICES ARE STIRRING AFTER A THREEYEAR SLUMBER ONLY BUMPER CROPS ON AMERICA'S FARMS THIS YEAR CAN KEEP THEM FROM RISING HIGHER AND POTENTIALLY PULLING INFLATION UP A BIT TOO PRICES FOR A GROCERY CART OF ITEMS FROM BREAKFAST CEREAL TO BAGELS TO MAYONNAISE HAVE ALREADY JUMPED THIS WINTER BAKERS ARE PAYING MORE FOR FLOUR AND COOKING OIL SOME ECONOMISTS EXPECT FOOD INFLATION THIS YEAR TO BE BETWEEN 33 AND 35 UP FROM 22 IN 1993 AND 12 IN 1992 THAT WOULD BE THE FIRST TIME IN ABOUT FOUR YEARS THAT FOOD PRICES EXCEEDED THE GENERAL INFLATION RATE WHICH IS EXPECTED TO RUN ABOUT 30 LAST YEAR'S RAINRELATED CROP DISASTER IN THE MIDWEST IS PRIMARILY TO BLAME FOR THE RISING PRICES THE FEBRUARY PRICE OF CORN THE NATION'S NO 1 CROP WAS THE HIGHEST IN A DECADE PRICES OF HIGHPROTEIN WHEAT SOYBEANS AND SORGHUM ALL POSTED DOUBLEDIGIT PERCENTAGE INCREASES FROM A YEAR AGO US STOCKPILES OF CORN AND SOYBEANS ARE SHRIVELING TO THEIR LOWEST LEVELS SINCE THE 1970S AND MUCH OF THE WHEAT CACHE IS POORQUALITY STUFF AT THIS RATE THE US THE WORLD'S BIGGEST GRAIN EXPORTER MIGHT EVEN HAVE TO IMPORT CROPS SUCH AS CORN IN ORDER TO MEET DEMAND UNTIL THIS YEAR'S HARVESTS BOUNTIFUL CROPS THEN WOULD KEEP GROCERY PRICES FROM JUMPING HIGHER IN 1995 BUT DON'T HOLD YOUR BREATH THIS HAS BEEN A HARD WINTER AND MUCH OF THE FARM BELT HASN'T DRIED OUT FROM LAST YEAR'S TORRENTIAL RAIN AND RECORD FLOODING THE SOIL IN MIDWEST STATES ALREADY IS SATURATED AND THE MONTHS JUST TEND TO GET WETTER DURING THIS TIME OF YEAR EVEN NORMAL SPRING RAINS WILL TRIGGER WORSETHANUSUAL FLOODING AND TURN FIELDS INTO QUAGMIRES WE ALREADY KNOW THERE WILL BE PROBLEMS SAYS S ELWYNN TAYLOR A CLIMATOLOGIST AT IOWA STATE UNIVERSITY WITH MORE THAN A MONTH TO GO UNTIL PLANTING SEASON THE CONVENTIONAL WISDOM IS THAT GRAIN PRODUCTION WILL REBOUND YIELDS IN THE MIDWEST DO HAVE A TRACK RECORD OF RECOVERING NICELY THE YEAR AFTER A CROP DISASTER STRAPPED FARMERS CURRENTLY HAVE AN INCENTIVE TO PLANT EVERY ACRE THEY CAN CORN PRICES ARE UP 30 FROM LAST YEAR AND SOYBEANS ARE UP 16 AN ANXIOUS AGRICULTURE DEPARTMENT ALSO IS ALLOWING FARMERS TO PLANT MORE LAND INVOLVED IN GOVERNMENT PROGRAMS IN HERON LAKE MINN ROBERT FERGUSON INTENDS TO PLANT THE MOST CORN HE EVER HAS 700 ACRES LAST YEAR HIS SOGGY FARM EKED OUT JUST 15 OF A NORMAL CROP MR FERGUSON WHO HAD CROP INSURANCE BARELY BROKE EVEN A LOT OF GUYS NEED A GOOD CROP THIS YEAR HE SAYS THE EARLY LINE AT THE CHICAGO BOARD OF TRADE IS THIS US CORN FARMERS HAVE ABOUT 80 MILLION ACRES TO PLANT PLUG IN THE NORMALLY ANTICIPATED YIELD AND OUT COMES A BINBUSTER OF 88 BILLION BUSHELS UP 39 FROM LAST YEAR'S DRENCHED CROP THAT WOULD BE ENOUGH TO MEET PROJECTED DEMAND OF ROUGHLY EIGHT BILLION BUSHELS AND LEAVE ENOUGH TO REBUILD A COMFORTABLE STOCKPILE AND THAT COMBINED WITH THE RECORD SOYBEAN HARVEST UNDER WAY IN SOUTH AMERICA AND THE CHINESE CORN FLOODING WORLD MARKETS WOULD LULL FOOD INFLATION BACK TO SLEEP BUT HISTORY OFFERS LITTLE GUIDE TO YIELDS THIS YEAR THE CROP DISASTERS FROM WHICH THE MIDWEST RECOVERED SO QUICKLY IN THE PAST WERE USUALLY DROUGHTS WHICH DO MUCH LESS DAMAGE TO THE SOIL EXCESSIVE RAINS ARE RARE LAST YEAR'S DELUGE DROWNED BENEFICIAL SOIL MICROBES AND WASHED AWAY NUTRIENTS GRAIN PRICES RALLIED LONG AFTER THE RAINS EASED LAST YEAR BECAUSE TRADERS WERE SLOW TO GRASP THE EXTENT OF THE DAMAGE COMMODITY TRADERS SAY ANYTHING LESS THAN IDEAL HARVESTS WILL CAUSE PROBLEMS FAST THERE IS ZERO SAFETY MARGIN THIS YEAR SAYS JOE VICTOR OF ALLENDALE INC A CRYSTAL LAKE ILL COMMODITY BROKERAGE FIRM THAT MEANS CROP PRICES COULD CAREEN WILDLY IN THE COMING MONTHS ON ANY SIGNS OF GOOD WEATHER AND BAD IF THE CROP ESTIMATES SLIP HERE'S WHAT TO LOOK FOR AN 84BILLIONBUSHEL CORN CROP WOULD SIGNAL A 4 FOOD INFLATION RATE IN 1995 FIGURES JOHN M URBANCHUK OF AUS CONSULTANTS A FORECASTING FIRM OUTSIDE PHILADELPHIA IF IT IS LESS THAN EIGHT BILLION BUSHELS STOCKPILES WOULDN'T REFILL AND THE FOOD INFLATION RATE WOULD PROBABLY HIT 5 BY LATE 1995 SAYS DONALD RATAJCZAK AN ECONOMIST AT GEORGIA STATE UNIVERSITY CONSUMERS SPEND ABOUT 600 BILLION ANNUALLY ON FOOD AND THOUGH THE FARM REPRESENTS ROUGHLY 10 CENTS OF THE RETAIL COST OF A BOX OF CORN FLAKES FOR EXAMPLE THE SPECTACLE OF A CROP DISASTER IS MAKING IT EASIER FOR FOOD COMPANIES TO RAISE THEIR PRICES A 75BILLIONBUSHEL CORN CROP WOULD PUSH PRICES TO A STRATOSPHERIC 4 A BUSHEL SOME ECONOMISTS ESTIMATE FROM ABOUT 284 IN CENTRAL ILLINOIS FRIDAY SUCH A SURGE WOULD STRANGLE EXPORTS AS WELL AS MAKE HOGS AND CATTLE TOO EXPENSIVE FOR MANY FARMERS TO FEED EVENTUALLY DRIVING UP MEAT PRICES THINGS ARE SO TIGHT THAT TINY CHANGES CAN CAUSE BIG SWINGS SAYS PAUL PRENTICE PRESIDENT OF FARM SECTOR ECONOMICS INC OF COLORADO SPRINGS COLO THE RISK HE SAYS ECHOING OTHERS IS ON THE UPSIDE 9403070058 940307 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9403070057 940307 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9403070056 940307 WHO'S NEWS UAL'S NEXT CHIEF COULD BE PARTTIMER IF BUYOUT SUCCEEDS GREENWALD HAS COMMITMENT TO WORK FOR CZECH FIRM ONE WEEK OF EVERY SIX BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IF THE PROPOSED EMPLOYEEBUYOUT OF UAL CORP IS CLEARED GERALD GREENWALD THE AIRLINE'S PROSPECTIVE CHIEF EXECUTIVE OFFICER WILL MOVE INTO THE CORPORATE SUITE AS A PARTTIMER UNTIL NEXT FEBRUARY ACCORDING TO A UNITED AIRLINES UNION OFFICIAL WHO HAS BEEN BRIEFED BY MR GREENWALD THE EXECUTIVE HAS A COMMITMENT TO WORK ONE OF EVERY SIX WEEKS FOR TATRA KOPRIVNICE A CZECH TRUCK COMPANY SINCE LAST SPRING MR GREENWALD AND TWO US PARTNERS HAVE MANAGED THE TROUBLED TRUCK MAKER USING A TAGTEAM APPROACH EACH TAKING TURNS TRAVELING TO THE CZECH REPUBLIC IT WASN'T CLEAR WHETHER MR GREENWALD MUST ACTUALLY FLY TO THE CZECH REPUBLIC FOR HIS WEEKLONG ASSIGNMENTS AFTER HE TAKES THE HELM AT UNITED OR IF HE CAN SIMPLY WORK ON TATRA'S BEHALF FROM THE US THE UNION OFFICIAL HOWEVER SAID HE BELIEVES MR GREENWALD MUST GO ABROAD MR GREENWALD WHO WAS TRAVELING OVER THE WEEKEND DIDN'T RETURN PHONE CALLS THE 58YEAROLD FORMER CHRYSLER CORP VICE CHAIRMAN WAS RECRUITED AS THE CEODESIGNATE LAST WINTER BY UNITED'S TWO LARGEST UNIONS WHICH NEGOTIATED A 5 BILLION PROPOSAL TO ACQUIRE A MAJORITY STAKE IN UAL THE TRANSACTION INCLUDED BIG WAGE AND WORKRULE CONCESSIONS TO PAY FOR THE UAL EQUITY PROXY MATERIALS FOR A SHAREHOLDER VOTE ARE EXPECTED TO BE MAILED NEXT WEEK AT LEAST ONE LARGE INSTITUTIONAL SHAREHOLDER EXPRESSED CONCERN ABOUT THE UNUSUAL WORK ARRANGEMENT CITING MR GREENWALD'S LACK OF AIRLINE OPERATING EXPERIENCE I WOULD THINK RUNNING UNITED WOULD BE A FULLTIME JOB SAID JOHN NEFF MANAGING PARTNER OF WELLINGTON MANAGEMENT CO AN INVESTMENT COMPANY WHOSE ROUGHLY 10 STAKE IN UAL MAKES IT THE AIRLINE'S LARGEST STOCKHOLDER HE CERTAINLY IS GOING TO HAVE TO BE A QUICK STUDY IN RESPONSE A UNITED UNION SPOKESMAN SAID WE ARE AWARE OF MR GREENWALD'S REMAINING COMMITMENT TO TATRA IT WILL HAVE NO EFFECT ON HIS ABILITY TO FULLY PERFORM HIS OBLIGATIONS AT UAL IN DECEMBER TATRA'S SHAREHOLDERS BECAME CONCERNED WHEN WORD SPREAD THAT MR GREENWALD THOUGHT TO BE THE COMPANY'S PRINCIPAL SAVIOR WOULD TAKE THE TOP JOB AT UNITED MR GREENWALD AND HIS BUSINESS PARTNERS DAVID SHELBY AND JACK D RUTHERFORD HAVE VOWED TO RETURN TATRA TO PROFITABILITY BY MARCH 1995 MR GREENWALD GAINED FAME IN THE EARLY 1980S AS THE ARCHITECT OF CHRYSLER'S RECOVERY AFTER RESIGNING THE NO 2 JOB AT CHRYSLER IN 1990 HE WENT ON TO LEAD A FAILED UNION BUYOUT OF UAL THAT EARNED HIM 9 MILLION IN COMPENSATION HE LATER BECAME PRESIDENT OF OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN REALESTATE CONCERN AND QUIT THAT JOB TO TAKE OVER TATRA LAST APRIL 9403070055 940307 FLORIDA'S TRAVEL INDUSTRY IS HIT HARD FOLLOWING ATTACKS ON FOREIGN TOURISTS BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL FLORIDA'S STRING OF HIGHLY PUBLICIZED ATTACKS ON FOREIGN TOURISTS LAST YEAR AS WELL AS SURGING COMPETITION FROM OTHER DESTINATIONS APPEAR TO HAVE HIT THE STATE'S HUGE TRAVEL INDUSTRY EVEN HARDER THAN EXPECTED THE NUMBER OF VISITORS TO FLORIDA FELL 76 IN DECEMBER FROM A YEAR EARLIER ACCORDING TO FIGURES RELEASED FRIDAY BY THE STATE DEPARTMENT OF COMMERCE IN THE FOURTH QUARTER VISITS WERE OFF NEARLY 3 FROM THE YEAREARLIER PERIOD THE DOWNTURNS DIDN'T PREVENT THE STATE'S 32 BILLION TRAVEL INDUSTRY FROM SHOWING A GAIN OF 12 FOR ALL OF 1993 TO 41 MILLION VISITORS FROM 405 MILLION IN 1992 BUT THAT FIGURE WAS SIGNIFICANTLY OFF STATE ECONOMISTS' ORIGINAL ANNUAL GROWTH ESTIMATE OF 41 AS WELL AS THEIR REVISED GROWTH ESTIMATE OF 19 AS OF NOVEMBER IT'S A SOURCE OF REAL CONCERN SAID CHARLES DUSSEAU SECRETARY OF THE FLORIDA DEPARTMENT OF COMMERCE THE DATA PROMPTED GOV LAWTON CHILES ON FRIDAY TO CALL FOR AN EMERGENCY ALLOCATION OF 2 MILLION TO BEEF UP THE STATE'S DEPLETED TOURISM ADVERTISING BUDGET A CADRE OF INDUSTRY ASSOCIATIONS AND CORPORATIONS HAVE PLEDGED TO MATCH ANY STATE FUNDING THE FLORIDA LEGISLATURE WHICH CONTROLS THE FUNDS DECLINED A SIMILAR CALL FOR FUNDS BY THE GOVERNOR LAST FALL NEARLY ALL OF THE 67 MILLION EARMARKED FOR FLORIDA'S YEARLY AD CAMPAIGN WAS SPENT EARLY TO COUNTERACT THE EFFECTS OF NINE MURDERS OF FOREIGN TOURISTS THE MOST RECENT OF WHICH OCCURRED IN SEPTEMBER FLORIDA'S FISCAL YEAR ENDS JUNE 30 THE DECLINE IN FLORIDA TOURISM BEGAN IN EARNEST LAST AUGUST WHEN VISITATION DROPPED 121 TO 32 MILLION PEOPLE FROM 37 MILLION PUSHING THE THIRD QUARTER'S TOURISM FIGURES DOWN 32 OVERALL DESPITE OPTIMISM ABOUT COLD WEATHER IN THE NORTHEAST AND MIDWEST PUSHING TRAVELERS SOUTHWARD STATE TOURISM OFFICIALS AREN'T CERTAIN WHEN THEY'LL SEE A TURNAROUND I CERTAINLY DON'T EXPECT ANY KIND OF UPTURN FOR JANUARY MR DUSSEAU SAID CRIME ISN'T THE ONLY FACTOR DRAGGING DOWN FLORIDA TOURISM ACCORDING TO INDUSTRY OFFICIALS HEIGHTENED COMPETITION FROM OTHER DESTINATIONS HAS BEGUN SIPHONING OFF A SIGNIFICANT NUMBER OF TRAVELERS WHO MIGHT OTHERWISE HAVE CHOSEN FLORIDA ACCORDING TO JOHN E EVANS PRESIDENT OF THE FLORIDA TOURISM ASSOCIATION MR EVANS POINTS TO THE MANY NEW DOCKSIDE GAMBLING RESORTS ALONG THE MISSISSIPPI RIVER AND ELSEWHERE AS TOUGH NEW COMPETITORS MR DUSSEAU BELIEVES FLORIDA IS ALSO BEING HURT BY THE LIKES OF OTHER SUNNY SITES SUCH AS LAS VEGAS WHICH NOW PITCHES ITSELF AS A FAMILY DESTINATION AND MEXICO WHICH HE SAID IS SPENDING ABOUT 15 MILLION THIS YEAR IN THE US TO ADVERTISE ITS ATTRACTIONS ALSO HURTING FLORIDA TOURISM ARE RECESSIONS IN EUROPE AND CANADA INTERNATIONAL TRAVELERS HAVE REPRESENTED THE FASTESTGROWING SEGMENT OF FLORIDA'S TOURISM INDUSTRY IN RECENT YEARS WITH THE MAJORITY OF MIAMI'S VISITORS FOR INSTANCE NOW COMING FROM ABROAD WHILE THE FORTUNES OF THE TRAVEL INDUSTRY ARE CRITICAL TO FLORIDA'S ECONOMY THE STATE HAS BEEN RECEIVING A BOOST OF LATE FROM STRONG INCREASES IN CONSTRUCTION AND A GROWING POPULATION UNEMPLOYMENT IS DOWN TO 57 FOR FEBRUARY COMPARED WITH 69 IN THE YEAREARLIER MONTH ACCORDING TO DANIEL FRIEL SENIOR ECONOMIC ANALYST FOR NATIONSBANK CORP CHARLOTTE NC EVEN THOUGH THE TOURISM BUSINESS DIDN'T LOOK THAT GOOD THE REST OF THE STATE APPEARS TO BE FARING VERY WELL HE SAID 9403070054 940307 CREDIT RATINGS KEYCORP MOODY'S INVESTORS SERVICE INC RAISED THE LONGTERM DEBT RATINGS OF THIS COMPANY FORMED BY THE MERGER OF SOCIETY CORP CLEVELAND AND KEYCORP ALBANY NY ABOUT 15 BILLION IN DEBT WAS AFFECTED THE RATING AGENCY SAID THE UPGRADE REFLECTS POSITIVE FINANCIAL DEVELOPMENTS AT BOTH COMPANIES PRIOR TO THE MERGER AS WELL AS PROSPECTIVE BENEFITS THAT SHOULD ARISE FROM THE COMBINATION THE NEW COMPANY WILL HAVE ITS HEADQUARTERS IN CLEVELAND MOODY'S SAID THE BANK'S NEW SENIOR RATING IS NOW SINGLEA1 THE FORMER KEYCORP HAD A SENIOR RATING OF SINGLEA2 AND SOCIETY A SENIOR RATING OF SINGLEA3 PRIOR TO THE MERGER ORYX ENERGY CO DALLAS MOODY'S INVESTORS SERVICE INC PLACED THIS OIL AND NATURALGAS COMPANY UNDER REVIEW FOR POTENTIAL DOWNGRADE OF THE BA2 RATING ON ITS SENIOR UNSECURED LONGTERM DEBT AND THE SINGLEB1 RATING ON ITS CONVERTIBLE SUBORDINATED DEBENTURES AFFECTING ABOUT 12 BILLION OF LONGTERM DEBT THE RATINGS AGENCY SAID IT WAS CONCERNED ABOUT THE CONTINUED NEGATIVE EFFECT OF LOW OIL PRICES ON THE COMPANY'S CASH FLOW EARNINGS DEBTPROTECTION MEASUREMENTS AND FINANCIAL FLEXIBILITY MOODY'S SAID IT WILL ALSO EXAMINE THE VALUE OF ORYX ENERGY'S OIL AND GAS PROPERTIES IN AN ENVIRONMENT OF LOW OIL PRICES A SPOKESMAN FOR ORYX CITING ITS STRONG LIQUIDITY BASE SAID THE COMPANY WAS A LITTLE BIT DISAPPOINTED BY MOODY'S ACTION BUT DIDN'T EXPECT THE REVIEW TO INCREASE ITS COST OF CAPITAL OR IMPAIR ITS ACCESS TO CAPITAL MARKETS 9403070053 940307 CLOSEDEND FUND PULLED IN FEBRUARY HITS MARKET AGAIN BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK A 11 BILLION CLOSEDEND FUND THAT WAS RESCINDED LATE LAST MONTH BECAUSE OF AN ERROR IN ITS PROSPECTUS GOT A SECOND CHANCE AS A NEARLY IDENTICAL FUND BEGAN TRADING ON FRIDAY ANALYSTS SAID THE LAUNCH OF A FUND ALMOST THE SAME SIZE AS THE ORIGINAL IS A SIGN THAT INVESTORS ARE HUNGRY TO SNAP UP SHARES OF CLOSEDEND FUNDS AND THAT WALL STREET IS EAGER TO UNDERWRITE THE DEALS GLOBAL PRIVATIZATION FUND INC BEGAN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE WITH AN INITIAL OFFERING OF 70 MILLION SHARES THE 1 BILLION FUND WHICH WAS PRICED THURSDAY AT 15 A SHARE CLOSED UNCHANGED FRIDAY ON VOLUME OF 21 MILLION SHARES ITS MANAGER ALLIANCE CAPITAL MANAGEMENT LP WITHDREW THE FUND FEB 25 AFTER FOUR DAYS OF TRADING WHEN AN ANALYST NOTICED AN ERROR IN A CHART IN THE PROSPECTUS FUND EXPERTS SAID THEY WERE SURPRISED TO SEE THE OFFERING COME BACK AT NEARLY THE SAME SIZE THEY HAD EXPECTED THE DEAL TO OFFER A QUARTER OR A THIRD FEWER SHARES THAN THE ORGINIAL 745 MILLION SHARES MANY ON WALL STREET THOUGHT INVESTORS WOULD BE RELUCTANT TO JUMP BACK INTO THE OFFERING AND THAT SOME SMALLER BROKERS WOULD BACK AWAY FROM SELLING THE FUNDS I THOUGHT SOME PEOPLE WOULD HAVE DROPPED OUT OF THE LINE SAID THOMAS HERZFELD A CLOSEDEND FUND SPECIALIST IN MIAMI SOME FUND EXPERTS THOUGHT THE FUND'S SUSPENSION WAS A SIGN THAT THE CLOSEDEND COUNTRY FUND MARKET HAD BECOME AS OVERHEATED AS THE MARKETS IN WHICH THEY INVEST HOWEVER THERE WERE RUMORS ON WALL STREET EARLIER LAST WEEK THAT THE OFFERING MIGHT EVEN BE BIGGER GIVEN INVESTOR INTEREST IN ALL TYPES OF INTERNATIONAL INVESTING THE NEW OFFERING REFLECTS THE ATTRACTION AND APPEAL OF THAT STORY THE FUND'S INVESTMENT OBJECTIVE SAID MICHAEL PORTER A CLOSEDEND FUND ANALYST AT SMITH BARNEY SHEARSON DESPITE DEBACLES IN MANY OF THESE MARKETS AND A PROLIFERATION OF FUNDS RESPECTABLESIZE DEALS ARE GETTING DONE IT SHOWS THE COUNTRYFUND INDUSTRY IS STILL ALIVE AND QUITE WELL GLOBAL PRIVATIZATION FUND IS THE FIRST CLOSEDEND FUND IN THE US TO INVEST IN THE STOCKS OF FORMER STATE ENTERPRISES THAT ARE NOW PRIVATE COMPANIES ALLIANCE GOT A CONCEPT OUT THE DOOR BEFORE ANYONE ELSE FIGURED IT OUT SAID VIVIAN LEWIS EDITOR OF GLOBAL INVESTING NEWSLETTER IN NEW YORK WHICH FOCUSES ON CLOSEDEND FUNDS AND FOREIGN STOCKS A SIMILARSIZED OFFERING SAYS A LOT ABOUT THE WORK THAT THE LEAD UNDERWRITER KIDDER PEABODY & CO DID TO GET THE DEAL COMPLETED UNDERWRITER'S FEES TOTAL 735 MILLION FOR THE CURRENT FUND COMPARED WITH 782 MILLION IN THE ORIGINAL OFFER I'M IMPRESSED MR HERZFELD SAID 9403070052 940307 LEISURE & ARTS BOOKSHELF LIVES OF THE WAYWARD AND UNACCOUNTABLE BY MERLE RUBIN CAROL SHIELDS'S NOVEL THE STONE DIARIES VIKING 361 PAGES 2195 DOES NOT ACTUALLY FOLLOW THE FORM OF A DIARY BUT ITS DETACHED MILDLY DISSOCIATED NARRATIVE INTERSPERSED WITH LETTERS SNAPSHOTS AND OTHER DOCUMENTS UNDERSCORES ITS THEME OF A LIFE THAT DOESN'T QUITE COHERE THE NARRATOR AND SUBJECT IS DAISY STONE GOODWILL WHO LIKES TO WRITE ABOUT HERSELF IN THE THIRD PERSON AS IF ANATOMIZING THE BEHAVIOR OF AN ALIEN SPECIES DAISY GOODWILL SHE WARNS AT ONE POINT HAS A LITTLE TROUBLE WITH GETTING THINGS STRAIGHT WITH THE TRUTH THAT IS AT FIRST GLANCE DAISY SEEMS TO BE LEADING THE WELLORDERED NORMAL LIFE OF A MIDDLECLASS WHITE NATIVE OF NORTH AMERICA SAFELY SHELTERED FROM THE MAJOR UPHEAVALS OF THE CENTURY BUT ON A DEEPER LEVEL SHE IS AS ROOTLESS AND DISCONNECTED AS ANY POSTMODERN ANTIHERO DAISY'S LIFE BEGINS WHEN HER MOTHER DIES GIVING BIRTH TO HER ONE HOT JULY AFTERNOON IN MANITOBA IN 1905 HER GRIEFSTRICKEN FATHER A LIMESTONE WORKER ALLOWS HER TO BE RAISED BY AN ECCENTRIC YET WELLINTENTIONED NEIGHBOR WOMAN WITH THREE GROWN SONS OF HER OWN AT AGE 11 DAISY IS RECLAIMED BY HER FATHER WHO'S ON HIS WAY TO ACCEPT A LUCRATIVE POSITION WITH A LIMESTONE COMPANY IN INDIANA DAISY'S ALLAMERICAN '20S GIRLHOOD IS CAPPED BY HER MARRIAGE TO THE TOWN'S MOTHERDOMINATED MR PERFECT HANDSOME ATHLETIC RICH HAROLD HOAD THE HONEYMOON IS A DISASTER UNWILLING OR UNABLE TO CONSUMMATE THE MARRIAGE THE GROOM LEAPS TO HIS DEATH FROM A WINDOW A DECADE LATER DAISY RETURNS TO CANADA AND WEDS THE OLDEST SON OF HER ADOPTIVE MOTHER A CONFIRMED BACHELOR WHO'S BEEN WAITING FOR HER ALL THESE YEARS MOTHERHOOD WIDOWHOOD GRANDCHILDREN A MIDLIFE CAREER AS A GARDENING COLUMNIST SEVERE DEPRESSION FOLLOWING THE END OF THAT CAREER RECOVERY RETIREMENT FLORIDA AND DEATH ARE FURTHER MILESTONES IN DAISY'S SAGA THROUGHOUT IT ALL DAISY IS NEVER QUITE SURE IF SHE IS LIVING HER LIFE OR ONLY WATCHING HERSELF GO THROUGH THE MOTIONS THE WATERY INSUBSTANTIAL QUALITY OF DAISY'S LIFE IS MS SHIELDS'S WAY OF REMINDING US THAT THE APPARENT SOLIDNESS OF PAST GENERATIONS MAY BE SOMETHING OF AN OPTICAL ILLUSION THOSE WHO WENT BEFORE US REFLECTS DAISY THINKING OF HER OWN FOREBEARS WERE EVERY BIT AS WAYWARD AND UNACCOUNTABLE AND UNSTEADY IN THEIR LONGINGS AS PEOPLE TODAY MS SHIELDS A VERSATILE AND ACCOMPLISHED CANADIAN WRITER WHO'S NOT YET RECEIVED THE ATTENTION ACCORDED HER COMPATRIOTS MARGARET ATWOOD AND ALICE MUNRO MANAGES TO PULL OFF THE RATHER TRICKY ENTERPRISE OF DESCRIBING APATHY WITHOUT PROVOKING IT IN THE READER IN DIARY OF A LOST BOY KNOPF 183 PAGES 20 PLAYWRIGHT AND POET HARRY KONDOLEON OFFERS A BRILLIANTLY COMIC YET UNFLINCHING VICTIM'SEYE VIEW OF POSTMODERN LIFE IN THE AGE OF AIDS ALREADY IN THE LATE STAGES OF THE DISEASE THE NOVEL'S DIARISTHERO HECTOR DIAZ IS READING THE MEDIEVAL MYSTIC MEISTER ECKHART IN THE HOPE OF CULTIVATING A SENSE OF DETACHMENT ABOUT HIS APPROACHING DEMISE YET HE ALSO FEELS A NEED TO ATTACH WHAT IS LEFT OF HIS ATTENTION TO THE FOUNDERING MARRIAGE OF HIS TWO BEST FRIENDS THE IRONICALLY NAMED BILL AND SUSAN DED SPOILED NEUROTIC NEW YORKERS THE DEDS ARE NONETHELESS QUITE DEVOTED TO HECTOR AND CAN'T IMAGINE WHY THEIR FATALLY ILL FRIEND SHOULD BE WORRYING ABOUT THEIR TRIVIAL PROBLEMS BUT FOR HECTOR WATCHING THEIR STORY TAKES HIS MIND OFF HIMSELF HECTOR ACCOMPANIES BILL TO MEETINGS OF THE PHILANDERING HUSBANDS SUPPORT GROUP UNABLE TO TELL IF THIS IS A GROUP TO HELP CURTAIL SEXUALLY COMPULSIVE BEHAVIOR OR A CLUB FOR HUSBANDS WHO WANTED TO BE SUPPORTED IN THEIR PHILANDERING HE TAGS ALONG WITH SUSAN ON A BLIND DATE WITH THE PROSPECTIVE NEW MAN IN HER LIFE YOU DIDN'T THINK IT PECULIAR THAT I WAS INVITED ALONG HECTOR ASKS THE FELLOW NO HE REPLIES WITH ADMIRABLE APLOMB I FOUND IT CHARMING THINGS WERE ARRANGED SO THAT I WAS MEETING NOT ONE BUT TWO INTERESTING PEOPLE MR KONDOLEON'S SATIRICAL THRUSTS ARE OFTEN OUTRAGEOUS BUT NEVER CRUEL HE HAS HIT UPON PRECISELY THE RIGHT TONE FOR CONVEYING HIS HERO'S STATE OR CHANGING STATES OF MIND THE PROBLEMS CONFRONTING ALICE HAMMOND THE 33YEAROLD HEROINE OF SARA LEWIS'S ENGAGING FIRST NOVEL HEART CONDITIONS HARCOURT BRACE 276 PAGES 2195 ARE HARDLY AS DIRE AS HECTOR'S SHE'S STUCK IN A DEADEND PUBLISHING JOB HER BOYFRIEND'S WALKED OUT SHE'S PREGNANT AND HAS LITTLE CHOICE BUT TO MOVE IN AS AN UNPAID NURSEMAID TO HER IMPERIOUS AILING GRANDMA ON LONG ISLAND FRIENDS CRITICIZE ALICE'S LACK OF BACKBONE BUT HER ATTEMPTS AT SELFASSERTION TEND TO BACKFIRE SOME ELEMENTS OF THE PLOT MAY SEEM A BIT TOO FAMILIAR THE CHARMING UNRELIABLE BOYFRIEND IS AN ACTOR THE DIFFICULT GRANDMOTHER PROVES MORE SUPPORTIVE THAN HAD BEEN SUPPOSED AND ALICE OF COURSE DECIDES TO HAVE THE BABY ABORTIONS SEEM TO OCCUR FAR LESS OFTEN IN FICTION THAN IN REAL LIFE BUT MS LEWIS'S WRY SENSE OF HUMOR AND GENUINE AFFECTION FOR HER BUMBLING CHARACTERS HELP CARRY THE DAY AND MAKE THIS BOOK A STANDOUT AMONG CONTEMPORARY CHRONICLES OF LOWSELFESTEEM HEROINES LEARNING TO SURVIVE IN THE BIG CITY 9403070051 940307 PRIMARY DEALERS POSTED HIGHER PROFITS IN 1993 DUE TO BOND MARKET'S RALLY BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL ORLANDO FLA THE BIG BONDMARKET RALLY IN 1993 TRANSLATED INTO ANOTHER YEAR OF SOLID PROFITS FOR THE NATION'S PRIMARY DEALERS OF GOVERNMENT SECURITIES ACCORDING TO THE FEDERAL RESERVE BANK OF NEW YORK THOSE FIRMS COLLECTIVELY EARNED 13 BILLION DURING 1993 UP FROM 12 BILLION THE PRIOR YEAR THE FIGURES WERE DISCLOSED BY THE NEW YORK FED DURING A CLOSEDDOOR SESSION WITH PRIMARY DEALERS DURING THE PUBLIC SECURITIES ASSOCIATION'S ANNUAL MEETING SATURDAY THERE ARE 39 FIRMS DESIGNATED AS PRIMARY DEALERS AND IT IS THROUGH THE PRIMARY DEALERS THAT THE FED CONDUCTS MONETARY POLICY IN ADDITION PRIMARY DEALERS ARE RESPONSIBLE FOR UNDERWRITING THE HUGE VOLUME OF GOVERNMENT DEBT ISSUED EVERY YEAR ACCOMPANYING THE RISE IN PROFITS LAST YEAR WAS AN INCREASE IN VOLUME AVERAGE TRADING VOLUME EXCLUDING MORTGAGEBACKED SECURITIES WAS 13 HIGHER IN 1993 THAN IN 1992 ACCORDING TO THE NEW YORK FED'S FIGURES AND OF THE 39 PRIMARY DEALERS 34 WERE PROFITABLE IN 1993 THAT COMPARES WITH 35 PROFITABLE OPERATIONS DURING 1992 LAST YEAR'S BONDMARKET RALLY PROVIDED THE FUEL FOR THE GAIN IN EARNINGS DEALERS SAID OVER THE COURSE OF THE YEAR THE YIELD ON THE TREASURY'S 30YEAR BOND FELL FROM 735 TO A LOW NEAR 575 A BULL MARKET FLOATS ALL BOATS SAID BILL FEEZER AN EXCUTIVE VICE PRESIDENT AT SANWA SECURITIES INC IN ADDITION TO THE DROP IN LONGTERM INTEREST RATES THERE WERE OTHER FACTORS THAT ALSO CONTRIBUTED TO THE INCREASED PROFITS MR FEEZER AND OTHERS SAID DURING 1993 THERE WAS A SURGE IN ISSUANCE BY STATE AND LOCAL GOVERNMENTS THAT WERE TAKING ADVANTAGE OF THE LOWER INTEREST RATES BY SELLING NEW DEBT DESIGNED TO PAY OFF OLDER HIGHERINTEREST SECURITIES THAT RESULTED IN A BOOM YEAR FOR UNDERWRITERS OF MUNICIPAL DEBT IN ADDITION THERE WAS A FLOOD OF CASH FROM THE MORTGAGEBACKED SECURITIES MARKETS WITH HISTORICALLY LOW INTEREST RATES CREATING A FRENZY OF MORTGAGE REFINANCING BY HOMEOWNERS OWNERS OF MORTGAGEBACKED PAPER FOUND THEMSELVES HOLDING SECURITIES OF SHORTER EFFECTIVE MATURITIES AS PREPAYMENTS ROSE IN ORDER TO OFFSET THAT TREND INVESTORS FUNNELED CASH INTO LONGTERM TREASURYS YET ANOTHER REASON PRIMARY DEALERS DID SO WELL IN 1993 WAS THE RUSH BY SMALL INVESTORS INTO MUTUAL FUNDS CONFRONTED WITH THE EXTREMELY SMALL RETURNS PROVIDED ON BANK SAVINGS INDIVIDUALS POURED MONEY INTO MUTUAL FUNDS MUCH OF WHICH FLOWED INTO THE BOND MARKETS BUT NOW THAT THE BULL MARKET IN BONDS HAS ENDED AND THE FEDERAL RESERVE HAS BEGUN RAISING SHORTTERM INTEREST RATES THE OUTLOOK FOR 1994 ISN'T AS ROSY DEALERS SAID IT'S LOOKING LESS FAVORABLE SANWA'S MR FEEZER SAID 9403070050 940307 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BANK OF CHINA 500 MILLION OF TWOPART YANKEE DEBT OFFERING VIA MORGAN STANLEY & CO BAY APARTMENT COMMUNITIES INC INITIAL 95 MILLION SHARES VIA KIDDER PEABODY & CO BETHLEHEM STEEL 12 MILLION SHARES VIA SALOMON BROTHERS INC BROWNINGFERRIS INDUSTRIES INC 12 MILLION SHARES VIA GOLDMAN SACHS & CO CRIIMI MAE INC 105 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP DRYPERS CORP INITIAL 29 MILLION SHARES VIA CS FIRST BOSTON INC EATON CORP 35 MILLION SHARES VIA CS FIRST BOSTON EMPHESYS FINANCIAL GROUP INITIAL 102 MILLION SHARES VIA GOLDMAN SACHS ENVIROTEST SYSTEMS CORP 200 MILLION OF SEVENYEAR SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE EXECUTIVE RISK INC INITIAL 45 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE FEDERAL EXPRESS CORP 380 MILLION OF PASSTHROUGH CERTIFICATES VIA GOLDMAN SACHS GAYLORD ENTERTAINMENT CO 71 MILLION SHARES VIA MERRILL LYNCH & CO HARTMARX CORP 100 MILLION OF EIGHTYEAR SENIOR SUBORDINATED NOTES VIA CS FIRST BOSTON JUST FOR FEET INC INITIAL 12 MILLION SHARES VIA MONTGOMERY SECURITIES AND ROBINSONHUMPHREY CO LANDRY'S SEAFOOD RESTAURANTS INC 18 MILLION SHARES VIA MONTGOMERY SECURITIES MACERICH CO INITIAL 125 MILLION SHARES VIA LEHMAN BROTHERS INC MORGAN STANLEY EMERGING MARKETS FUND INC 15 MILLION SHARES VIA MORGAN STANLEY NPS PHARMACEUTICALS INC INITIAL 25 MILLION SHARES VIA PAINEWEBBER INC OLYMPIC STEEL INC INITIAL FOUR MILLION SHARES VIA SALOMON BROTHERS TRICON CAPITAL CORP INITIAL 135 MILLION SHARES VIA LEHMAN BROTHERS TRINET CORPORATE REALTY TRUST INC 25 MILLION SHARES VIA MERRILL LYNCH UROMED CORP INITIAL FIVE MILLION SHARES VIA PAINEWEBBER USG CORP 85 MILLION SHARES VIA SALOMON BROTHERS CALIFORNIA 700 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION BONDS VIA COMPETITIVE BID CHATHAM COUNTY HOSPITAL AUTHORITY GA 150 MILLION OF SERIES 1994A HOSPITAL REVENUE REFUNDING BONDS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP VIA A CS FIRST BOSTON CORP GROUP HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY FLA 130 MILLION OF SERIES 1994 REVENUE BONDS MBIAINSURED VIA A MERRILL LYNCH GROUP MARYLAND COMMUNITY DEVELOPMENT ADMINISTRATION 100 MILLION OF REVENUE BONDS VIA A MERRILL LYNCH & CO GROUP NEBRASKA INVESTMENT FINANCE AUTHORITY 100 MILLION OF SINGLEFAMILY MORTGAGE REVENUE BONDS VIA A LEHMAN BROTHERS GROUP NEW YORK CITY MUNICIPAL FINANCE AUTHORITY 325 MILLION OF WATER AND SEWER REVENUE BONDS VIA A PAINEWEBBER INC GROUP SANTA ANA FINANCING AUTHORITY CALIF 105 MILLION OF CERTIFICATES OF PARTICIPATION MBIAINSURED VIA A SMITH BARNEY SHEARSON INC GROUP WISCONSIN 172 MILLION OF GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP 9403070049 940307 POLITICS & POLICY MITCHELL'S DECISION TO RETIRE LEAVES DEMOCRATS WITHOUT CLEAR SUCCESSOR FOR POWERFUL CLINTON ALLY BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NO ONE IS IRREPLACEABLE GEORGE MITCHELL IS THE FIRST TO ARGUE BUT PRESIDENT CLINTON IS GOING TO MISS THE SENATE MAJORITY LEADER WHEN HE'S GONE THE MAINE DEMOCRAT'S ANNOUNCEMENT LAST FRIDAY THAT HE WOULD RETIRE FROM THE SENATE AFTER THIS YEAR IN GOOD HEALTH AT AGE 60 AND AT THE PEAK OF HIS POWER CONFOUNDED ALL OF OFFICIAL WASHINGTON AND JARRED HIS FELLOW DEMOCRATS MOST OF ALL THE MAN IN THE WHITE HOUSE SEN MITCHELL HAS BEEN PIVOTAL TO THE CLINTON VICTORIES TO DATE AND THE ADMINISTRATION'S BIGGEST CHALLENGE HEALTHCARE REFORM IS AHEAD HIS DEPARTURE TO CONSIDER OTHER CHALLENGES POTENTIALLY A SUPREME COURT SEAT OR THE BASEBALL COMMISSIONER'S POST WAS HARDLY GOOD NEWS FOR THE CLINTON ADMINISTRATION'S TROUBLED HEALTHCARE INITIATIVE HIS LEAVING STILL COULD BE TURNED TO ADVANTAGE AS SEN MITCHELL REDOUBLES HIS EFFORTS TO SELL MR CLINTON'S PROGRAM YET IT WAS WITH GOOD REASON THAT THE PRESIDENT QUIZZED THE SENATOR ABOUT HIS DECISION TO RETIRE IN A POSTDINNER TALK WITH SEN MITCHELL AT THE WHITE HOUSE LATE THURSDAY AND AGAIN IN A LATENIGHT PHONE CALL AFTER THE SENATOR HAD RETURNED HOME I CAN'T THINK OF ANYONE WHO CAN REPLACE HIM SAYS SEN JIM SASSER A TENNESSEE DEMOCRAT AND MITCHELL FRIEND AND FOR THAT REASON MANY REPUBLICANS PRIVATELY ARE GLEEFUL IN FIVE YEARS AS MAJORITY LEADER HE HAS BEEN ABLE TO UNITE THE FRACTIOUS SENATE DEMOCRATS AT CRUCIAL MOMENTS AS HE DID IN PASSING PRESIDENT CLINTON'S ECONOMIC PROGRAM LAST YEAR THROUGH PERSONAL PERSUASION PUBLIC ARGUMENT AND ADROIT USE OF HIS OFFICE'S LEVERS OF POWER YET EVEN BEFORE SEN MITCHELL DEPARTS HIS LAMEDUCK STATUS COULD UNDERCUT HIS LEVERAGE WITH BALKY PARTY COLLEAGUES HIS LEAVING SETS OFF A SUCCESSION STRUGGLE AMONG SENATE DEMOCRATS JUST WHEN THEY MOST NEED STABILITY AND IT THROWS MAINE'S SENATE SEAT UP FOR GRABS COMPLICATING DEMOCRATS' EFFORTS TO PROTECT THEIR 5644 MAJORITY SEN MITCHELL BACK HOME IN MAINE FOR THE WEEKEND TO MAKE HIS ANNOUNCEMENT THERE DISMISSED THE HANDWRINGING IN HIS PARTY THE MAJOR ELEMENTS OF THE PRESIDENT'S AGENDA CAN BE ENACTED INTO LAW THIS YEAR HE SAID IN AN INTERVIEW CITING HEALTHCARE CAMPAIGNFINANCE AND WELFARE REFORM AND A CRIME BILL AND I'LL DO EVERYTHING I CAN TO SEE THAT'S TRUE THE LIBERAL SENATOR IN FACT HAS HIS OWN STAKE IN ACHIEVING HEALTHCARE REFORM EARLY IN HIS 14YEAR SENATE CAREER HE MADE IT A PERSONAL PRIORITY ALONG WITH ENVIRONMENTAL LEGISLATION AS MAJORITY LEADER DURING THE BUSH ADMINISTRATION HE PUT THE ISSUE AT THE TOP OF THE DEMOCRATS' AGENDA LONG BEFORE MR CLINTON HAD EMERGED AS THE PARTY'S PRESIDENTIAL CANDIDATE HIS RELATIONS WITH COLLEAGUES RANGE FROM WARM TO RESPECTFUL AND SOME DEMOCRATS WILL WANT TO HELP THE MAJORITY LEADER PASS A HEALTH BILL IN DEFERENCE TO HIS LEGACY SEN PATRICK LEAHY A VERMONT DEMOCRAT SAID HIS FIRST REACTION AFTER SEN MITCHELL CALLED FRIDAY WAS GLUM LAME DUCK THAT'S IT BUT SEN LEAHY SAID HE HAS CONCLUDED SEN MITCHELL WILL REMAIN EFFECTIVE HE'S A MASTER TACTICIAN AND HE STILL HAS THAT ABILITY HE STILL DETERMINES WHEN LEGISLATION COMES UP IN THE SENATE AND HE STILL HAS A GREAT DEAL OF RESPECT AMONG SENATORS EVEN THE EMBRYONIC STRUGGLE AMONG SENATE DEMOCRATS TO SUCCEED HIM MIGHT WORK TO SEN MITCHELL'S AND MR CLINTON'S BENEFIT POTENTIAL CONTENDERS AMONG MORE CONSERVATIVE DEMOCRATS SUCH AS LOUISIANA SEN JOHN BREAUX WILL BE EAGER TO SHOWCASE THEIR SUPPORT FOR PRESIDENT AND PARTY ON SUCH AN IMPORTANT ISSUE IN PART BECAUSE SEN MITCHELL'S DECISION WAS SO UNEXPECTED NO CLEAR CANDIDATES HAVE EMERGED THE POPULAR DAVID PRYOR OF ARKANSAS CURRENTLY A MIDLEVEL LEADER COULD BE A FAVORITE ALTHOUGH SENATORS HAVE QUESTIONS ABOUT HIS HEALTH KENTUCKY SEN WENDELL FORD WILL FIND IT HARD TO GO BEYOND HIS CURRENT NO 2 POST SENS SASSER AND LEAHY DON'T RULE OUT CANDIDACIES AND SEN JAY ROCKEFELLER OF WEST VIRGINIA IS A POSSIBILITY MEANWHILE SPECULATION CENTERS ON JUNIOR LAWMAKERS AMONG THEM SEN BREAUX MITCHELL PROTEGE THOMAS DASCHLE OF SOUTH DAKOTA AND HARRY REID OF NEVADA WHO WERE ELECTED IN 1986 WITH THE HELP OF SEN MITCHELL THEN HEAD OF SENATE DEMOCRATS' CAMPAIGN COMMITTEE IT WAS SEN MITCHELL'S ROLE THAT YEAR IN HELPING THE PARTY REGAIN SENATE CONTROL THAT PROPELLED HIM TO VICTORY TWO YEARS LATER AS LEADER AS FOR MAINE'S SENATE SEAT REP OLYMPIA SNOWE OR HER HUSBAND GOV JOHN MCKERNAN WERE IMMEDIATELY CONSIDERED POTENTIAL GOP CANDIDATES SEN MITCHELL PREDICTS REP THOMAS ANDREWS ANOTHER LIBERAL DEMOCRAT WILL SUCCEED HIM MORE GENERALLY CHANCES OF REPUBLICANS TAKING OVER THE SENATE HAVE BEEN COUNTED AS SLIM AND SEN MITCHELL SAID WE'LL HOLD THE SENATE I'M CONFIDENT OF THAT BUT WITHOUT SEN MITCHELL THAT SENATE WILL LIKELY BE TOUGHER TERRAIN FOR MR CLINTON ESPECIALLY IF DEMOCRATS EMERGE FROM THIS YEAR'S ELECTIONS WITH A SMALLER MAJORITY THE SENATOR'S VALUE TO THE WHITE HOUSE WAS EVIDENT LAST WEEK WHEN HE SECURED DEFEAT OF A PROPOSED BALANCEDBUDGET CONSTITUTIONAL AMENDMENT THE IMPASSIONED PUBLIC ARGUMENTS OF THE FORMER PROSECUTOR AND FEDERAL JUDGE GAVE NERVOUS COLLEAGUES AMMUNITION AGAINST THE POPULAR PROPOSAL HE ENGINEERED AN ALTERNATIVE THAT WAS CERTAIN TO FAIL BUT GAVE A FEW DEMOCRATS POLITICAL COVER PRIVATELY HE WON OVER WAVERERS SHAMED THEM A SENATOR SAID BY KNOWINGLY ASKING EACH HOW WOULD YOU VOTE IF VOTES WERE SECRET SEN MITCHELL'S DECISION TO WALK AWAY FROM POWER WAS A RARE ACT IN A CAPITAL MORE ACCUSTOMED TO SEEING OLDER LAWMAKERS HANG ON HE INSISTED IT HAD NOTHING TO DO WITH THE FRUSTRATIONS OF PUBLIC LIFE THAT HAVE BEEN DRIVING SOME LOWERRANKED LAWMAKERS TO LEAVE NEVERTHELESS HE WAS FEELING THE STRAIN OF THE JOB SAYS FORMER SEN WARREN RUDMAN A NEW HAMPSHIRE REPUBLICAN WHO LUNCHED WITH SEN MITCHELL RECENTLY AND WHOSE OWN RETIREMENT AFTER 1992 WAS A SURPRISE AT THE SAME TIME MR CLINTON'S 1992 VICTORY SEEMED TO PUT OUT OF REACH SEN MITCHELL'S DREAMS OF THE JOB WITH MORE POWER THE PRESIDENCY ONLY HIS CLOSEST FRIENDS AND HIS THREE BROTHERS AND A SISTER IN MAINE WEREN'T SHOCKED EVERYTHING HE'S DONE HE'S BEEN SUCCESSFUL AT BUT HE'S NEVER OVERSTAYED HIS TIME SAYS PORTLAND MAINE LAWYER HAROLD PACHIOS A LONGTIME FRIEND HE JUST WASN'T INTERESTED IN SERVING ANOTHER FULL SENATE TERM SAYS FORMER SEN EDMUND MUSKIE SEN MITCHELL'S MENTOR AND THE MAN HE SUCCEEDED IN THE SENATE AT 60 IF YOU'RE GOING TO MAKE A CHANGE NOW IS THE TIME TO CONSIDER IT SEN MITCHELL PLANS TO COMPLETE HIS THIRD BOOK A HISTORY OF DEMOCRACY'S VICTORY OVER COMMUNISM MEANWHILE HE SAYS IF EITHER THE BASEBALL OWNERS OFFER HIM A JOB OR THE PRESIDENT OFFERS HIM A FUTURE OPENING ON THE SUPREME COURT I'LL CONSIDER IT BUT HE STRESSES THAT HIS DECISION AT BOTTOM HAD NOTHING TO DO WITH SUCH OPTIONS MY CONCEPT OF PUBLIC SERVICE IS IT'S NOT A PERMANENT THING HE SAYS I TELL PEOPLE I AM NOT A POWERFUL PERSON I AM A PERSON WHO TEMPORARILY HOLDS A POSITION OF POWER DAVID ROGERS AND JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9403070048 940307 BUSINESS BRIEF CANON INC US UNIT TO BEGIN MAKING PC WORKSTATIONS FOR NEXT CANON COMPUTER SYSTEMS INC THE US ARM OF JAPANESE ELECTRONICS COMPANY CANON INC SAID IT WILL SOON BEGIN MANUFACTURING PERSONALCOMPUTER WORKSTATIONS FOR NEXT COMPUTER INC UNDER THE AGREEMENT CANON COMPUTER SYSTEMS IN COSTA MESA CALIF SAID IT HOPES TO SHIP ITS FIRST PRODUCT CALLED THE CANON NEXTSTATION IN THE SECOND QUARTER THE FIRST MACHINE WILL BE POWERED BY AN INTEL CORP 486 MICROPROCESSOR WITH A SUBSEQUENT MACHINE TO BE BUILT AROUND INTEL'S NEW PENTIUM CHIP LAST YEAR NEXT WHICH IS BASED IN REDWOOD CITY CALIF LEFT THE COMPUTER HARDWARE BUSINESS TO CONCENTRATE ON SOFTWARE CANON INC WAS AN EARLY INVESTOR IN NEXT WHICH WAS LAUNCHED BY APPLE COMPUTER INC'S FOUNDER STEVEN JOBS 9403070047 940307 INTERNATIONAL BRIEF EMPRESAS ICA SA CONSTRUCTION CONCERN PLANS TO SELL ITS HOTEL DIVISION MEXICAN CONSTRUCTION GIANT EMPRESAS ICA SA MEXICO CITY SAID IT INTENDS TO SELL ITS HOTEL DIVISION AS PART OF ITS CORPORATE STRATEGY TO FOCUS ON ITS CORE CONSTRUCTION BUSINESS ICA CONTROLS FIVE SHERATON HOTELS IN THE RESORT DESTINATIONS OF CANCUN HUATULCO ACAPULCO IXTAPA AND PUERTO VALLARTA IT ALSO CONTROLS THE RADISSON CHAIN OF HOTELS IN MEXICO ICA HAS NAMED BARING BROTHERS & CO AS FINANCIAL ADVISER FOR THE SALE ICA OWNS AND OPERATES SHERATON HOTELS IN ASSOCIATION WITH SHERATON INTERNATIONAL AND AMERICAN EXPRESS CO ICA AND BANCO NACIONAL DE MEXICO SA OWN AND OPERATE THE RADISSON HOTELS IN MEXICO THROUGH A FRANCHISE AGREEMENT WITH CARLSON HOSPITALITY GROUP INC IT WASN'T IMMEDIATELY CLEAR IF ICA INTENDS TO SELL ALL OR PART OF THESE PROPERTIES ICA'S HOTEL DIVISION CONTRIBUTED 257 MILLION NEW PESOS 79 MILLION TO TOTAL 1992 REVENUE OF 559 BILLION NEW PESOS 17 BILLION THAT'S EQUIVALANT TO ABOUT 46 OF TOTAL REVENUE THE DIVISION HAS AN INTEREST IN 4262 HOTEL ROOMS AND HAD A 1992 OCCUPANCY RATE OF 654 9403070046 940307 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY'S MOMENTUM IS SLOWING FROM LAST YEAR'S SIZZLING PACE FEBRUARY'S EMPLOYMENT REPORT SHOWS THE UNEMPLOYMENT RATE EDGED DOWN TO 65 FROM 67 THOUGH THE TOTAL NUMBER OF HOURS WORKED LAST MONTH FELL 13 HOWEVER ECONOMIC FORECASTERS SAID THE ECONOMY STILL SEEMS TO BE EXPANDING AT A HEALTHY 3 ANNUAL RATE OR BETTER IN THE FIRST QUARTER APPLE TODAY WILL SKETCH OUT PLANS TO MAKE MACINTOSH SOFTWARE BETTER ABLE TO DO THINGS AUTOMATICALLY AS THE RACE TO DEFINE THE LOOK AND FEEL OF PERSONAL COMPUTERS HEATS UP APPLE IS BATTLING MICROSOFT WHICH HAS BEEN GIVING GLIMPSES OF ITS STILLUNFINISHED CHICAGO OPERATINGSYSTEM SOFTWARE SEVERAL PC MAKERS PLAN TO ANNOUNCE MODELS THIS WEEK THAT USE A ROBUST VERSION OF INTEL'S PENTIUM CHIP THEY HOPE TO STEAL SOME FIRE FROM APPLE WHICH SOON WILL LAUNCH A MACINTOSH LINE USING THE POWERPC CHIP DESIGNED BY APPLE IBM AND MOTOROLA LOCKHEED'S F22 FACES ANOTHER POTENTIALLY DAMAGING DEVELOPMENT AFTER THE AIR FORCE DETECTED SHORTFALLS IN THE QUALITY OF STEALTH FEATURES THAT HELP THE FIGHTER ELUDE RADAR DETECTION FHP INTERNATIONAL AGREED TO ACQUIRE TAKECARE FOR ABOUT 11 BILLION IN CASH AND SECURITIES OR 80 A SHARE FHP'S MOVE IS AN EFFORT TO CREATE ONE OF THE NATION'S LARGEST HMOS SEARS PARTLY RESTORED A VARIATION OF THE SALESINCENTIVE PRACTICE THAT LED TO WIDESPREAD CHARGES OF BILKING CONSUMERS IN ITS US AUTO CENTERS MOTOROLA AND HEWLETTPACKARD ARE GETTING READY TO UNVEIL SHARPLY DIFFERENT STRATEGIES FOR DOMINATING THE MARKET FOR PERSONAL DIGITAL ASSISTANTS CONGRESS WILL ENACT A COMPROMISE HEALTHCARE SYSTEM IN WHICH LARGE AND SMALL COMPANIES FACE DIFFERENT COVERAGE REQUIREMENTS THE CHAIRMAN OF THE SENATE FINANCE PANEL PREDICTED WARREN BUFFETT SPENT 2725 MILLION TO BUY 55 MILLION MORE SHARES IN SALOMON INC RAISING HIS STAKE IN THE SECURITIES COMPANY TO 1904 FROM 147 THE WORLD'S DERIVATIVES EXCHANGES POSTED THEIR BUSIEST WEEK LAST WEEK MOVED BY TURMOIL IN US AND FOREIGN BONDS AND STOCKS AND TRADERS SAID THE PACE IS LIKELY TO CONTINUE THIS WEEK IBM PLANS TO CONSOLIDATE THE DESIGN AND DEVELOPMENT TEAMS OF TWO OF ITS PERSONAL COMPUTER LINES TO CUT COSTS AND BRING PRODUCTS TO MARKET FASTER GIBSON GREETINGS SAID IT INCURRED A 3 MILLION LOSS AS A RESULT OF UNAUTHORIZED INTERESTRATE SWAPS AND HAS HIRED OUTSIDE COUNSEL TO INVESTIGATE FOUR MAJOR GROCERY CHAINS WITH SIGNIFICANT RETAIL DRUG OPERATIONS FILED A SUIT AGAINST 16 LARGE DRUG MAKERS AND A MAILORDER PRESCRIPTION COMPANY ALLEGING DISCRIMINATORY PRICING NATIONAL MEDICAL IS IN TALKS TO SELL ABOUT 50 PSYCHIATRIC HOSPITALS TO CHARTER MEDICAL ANALYSTS SAID THE HOSPITALS COULD FETCH UP TO 200 MILLION ROGERS COMMUNICATIONS AGREED TO A SWAP OF CABLETV ASSETS WITH ANOTHER CANADIAN CABLE FIRM IF ITS 206 BILLION BID FOR MACLEAN HUNTER IS SUCCESSFUL THE AGREEMENT DEALS A BLOW TO MACLEAN BY ELIMINATING THE OTHER CABLE FIRM AS A POSSIBLE RIVAL BIDDER GENERAL DYNAMICS ANNOUNCED A CUTBACK IN ITS BOARD THAT INCLUDES THE DEPARTURE OF ITS CHAIRMAN IN MAY THE COMPANY ALSO DECLARED A 2FOR1 STOCK SPLIT AND A 17 RISE IN ITS DIVIDEND STOCKS VOLUME 310760990 SHARES DOW JONES INDUSTRIALS 383230 UP 788 TRANSPORTATION 173737 UP 750 UTILITIES 21210 UP 184 BONDS LEHMAN BROTHERS TREASURY INDEX 532198 OFF 479 COMMODITIES OIL 1457 A BARREL OFF 18 CENTS DOW JONES FUTURES INDEX 14505 UP 054 SPOT INDEX 13107 UP 042 DOLLAR 10565 YEN UP 17 17190 MARKS UP 00085 9403070045 940307 INTERNATIONAL BRIEF CEMENTOS MEXICANOS SA OPERATING PROFIT FOR 1993 ROSE 23 AT CEMENT CONCERN MEXICAN CEMENT COMPANY CEMENTOS MEXICANOS SA CEMEX SAID 1993 OPERATING PROFIT ROSE 23 TO 225 BILLION NEW PESOS 6923 MILLION FROM 182 BILLION NEW PESOS IN 1992 THE MEXICO CITY COMPANY SAID GROUP NET CONSOLIDATED PROFIT FELL 5 TO 198 BILLION NEW PESOS FROM 206 BILLION NEW PESOS PERSHARE EARNINGS FELL 10 TO 532 NEW PESOS FROM 591 NEW PESOS IN 1992 NET SALES LAST YEAR ROSE 24 TO 924 BILLION NEW PESOS FROM 745 BILLION NEW PESOS FOR THE FOURTH QUARTER NET PROFIT ROSE 1 TO 5006 MILLION NEW PESOS FROM 4882 MILLION NEW PESOS NET SALES IN THE FOURTH QUARTER ROSE 5 TO 239 BILLION NEW PESOS FROM 228 BILLION NEW PESOS IN THE 1992 QUARTER FOURTHQUARTER PERSHARE EARNINGS FELL 8 TO 135 NEW PESOS FROM 147 NEW PESOS 9403070044 940307 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 17 LISTINGS INCLUDING 16 INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS THE BIG BOARD BEGAN TRADING THREE NEW YORKBASED CLOSEDEND FUNDS JARDINE FLEMING INDIA FUND INC UNDER JFI NEW SOUTH AFRICA FUND INC NSA AND GLOBAL PRIVATIZATION FUND INC GPF NASDAQ ADDED THE FOLLOWING INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM ARDEN INDUSTRIAL PRODUCTS INC ST PAUL MINN A DISTRIBUTOR OF FASTENERS AFAS AES CHINA GENERATING CO CENTRAL HONG KONG ORGANIZED TO OPERATE ELECTRIC POWER GENERATION FACILITIES IN CHINA CHGNF CONCORD HOLDING CORP NEW YORK A DISTRIBUTOR OF PROPRIETARY MUTUAL FUNDS CNCD ELECTRIC FUEL CORP NEW YORK A RESEARCH AND DEVELOPMENT COMPANY EFCX EMMIS BROADCASTING CORP INDIANAPOLIS A RADIO STATION OPERATOR EMMS EFFECTIVE MANAGEMENT SYSTEMS INC MILWAUKEE A DEVELOPER OF INTEGRATED MANUFACTURING AND SOFTWARE EMSI EQUITY INNS INC MEMPHIS TENN FORMED TO ACQUIRE EQUITY INTEREST IN EIGHT HAMPTON INN HOTELS ENNS FINISHMASTER INC KENTWOOD MICH A DISTRIBUTOR OF AUTOMOTIVE PAINTS AND RELATED PRODUCTS FMST GLOBAL VILLAGE COMMUNICATIONS INC MOUNTAIN VIEW CALIF A DEVELOPER OF COMPUTER PRODUCTS GVIL TOTAL CONTAINMENT INC EXTON PA A MAKER OF MOTOR VEHICLE FUEL CONTAINMENT SYSTEMS TCIX CIDCO INC MORGAN HILL CALIF A DESIGNER OF SUBSCRIBER TELEPHONE EQUIPMENT CDCO HEALTH POWER INC WI NASDAQ ALSO BEGAN TRADING DELRINA CORP TORONTO ONTARIO CANADA A DEVELOPER OF SOFTWARE PRODUCTS DENAF AMEX BEGAN TRADING THE COMMON STOCK AND BOTH CLASS A AND CLASS B REDEEMABLE COMMON STOCK PURCHASE WARRANTS OF HMG DIGITAL TECHNOLOGIES CORP HAUPPAUGE NY AN AUDIO AND VIDEO CASSETTE MANUFACTURING AND DUPLICATION COMPANY HDT THE EXCHANGE ALSO BEGAN TRADING RED EAGLE RESOURCES CORP OKLAHOMA CITY AN ENERGY COMPANY RER THE EXCHANGE ALSO LISTED EQUITYLINKED SECURITIES CONNECTED TO PROMUS COS AMEX ALSO BEGAN TRADING INTERNATIONAL FINANCE CORP US DOLLAR/YEN CURRENCY WARRANTS THE EMERGING COMPANY MARKETPLACE BEGAN TRADING BEMA GOLD CORP AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON PACTEL CORP THURSDAY AND MADGE NV TOMORROW THE CBOE BEGAN TRADING OPTIONS ON NATIONAL GYPSUM CO SAGE TECHNOLOGIES INC AND STERIS CORP AND WILL TRADE OPTIONS ON THE CBOE TELECOMMUNICATIONS INDEX TODAY 9403070043 940307 ZHIRINOVSKY'S MAN IN ESTONIA MAKES SOME FOLKS NERVOUS ROZHOK PEDDLES A SOFTER LINE BUT IS STILL CONTROVERSIAL NEWSPAPER QUOTE DISPUTE BY LISA TREI SPECIAL TO THE WALL STREET JOURNAL TALLINN VLADIMIR ZHIRINOVSKY'S MAN IN ESTONIA PEDDLES A SOFTER LINE THAN HIS ULTRANATIONALIST BOSS BUT PYOTR ROZHOK STILL MAKES ESTONIANS NERVOUS I LIKE ZHIRINOVSKY THE 55YEAROLD MR ROZHOK SAYS POINTING TO AN ELECTION POSTER OF HIS DOUBLECHINNED BOSS BRANDISHING A SLOGAN PROMISING TO DEFEND ALL RUSSIANS ON THE TERRITORY OF THE EXSOVIET EMPIRE THAT INCLUDES LATVIA AND LITHUANIA AND ESTONIA AS WELL IN A NATION SMARTING FROM RECENT ACCUSATIONS OF ETHNIC CLEANSING BY RUSSIA'S FOREIGN MINISTER BECAUSE THE ESTONIAN GOVERNMENT HASN'T GIVEN BLANKET CITIZENSHIP TO SOVIETERA SETTLERS MR ROZHOK'S ACTIVITIES HAVE ATTRACTED PUBLIC SCRUTINY ON FEB 4 THE ESTONIAN SECURITY POLICE STARTED INVESTIGATING MR ROZHOK FOR INCITING RACIAL NATIONAL OR RELIGIOUS HATRED BASED IN PART ON A NEWSPAPER INTERVIEW IN WHICH HE WAS QUOTED AS URGING RETIRED RUSSIAN OFFICERS IN ESTONIA TO FORM BRIGADES TO DEFEND THEMSELVES BUT MR ROZHOK HAS DENIED MAKING SUCH A STATEMENT IF THE MONTHLONG INVESTIGATION LEADS TO A CONVICTION MR ROZKOK COULD FACE AS LONG AS A YEAR IN PRISON BUT NOW PYOTR ROZHOK IS A FREE MAN MR ZHIRINOVSKY SAYS HE HAD BETTER STAY THAT WAY I WARN THE ESTONIAN GOVERNMENT IF A SINGLE HAIR ON PYOTR ROZHOK'S HEAD IS TOUCHED THE ESTONIAN GOVERNMENT WILL HAVE TO START THINKING ABOUT THE FATE OF 900000 ESTONIANS MR ZHIRINOVSKY SAYS REFERRING TO THE INDIGENOUS RESIDENTS WHO MAKE UP A MAJORITY OF ESTONIA'S 16 MILLION POPULATION IF ROZHOK GOES TO PRISON THAT'S THE END FOR ESTONIA AND TALLINN ESTONIAN FOREIGN MINISTRY SPOKESWOMAN MARIANN RIKKEN VIEWS THE CASE AS A POTENTIAL SECURITY ISSUE THAT NEEDS TO BE HANDLED CALMLY WE DON'T WANT THE SITUATION TO GET OUT OF HAND SHE SAYS THE CRIMINAL INVESTIGATION FOCUSES IN PART ON A JAN 25 TAPED INTERVIEW OF MR ROZHOK FOR AN ARTICLE IN SILLAMAESKI VESTNIK A RUSSIANLANGUAGE SMALLTOWN PAPER IN WHICH HE TALKED ABOUT THE FATE OF ESTONIA'S 10570 PENSIONED RUSSIAN OFFICERS ACCORDING TO THE NEWSPAPER ARTICLE MR ROZHOK SAID THOSE WHO RETIRED AFTER INDEPENDENCE IN 1991 SHOULDN'T HAVE TO LEAVE ESTONIA THOSE WHO RETIRED BEFORE THEN CAN APPLY FOR RESIDENCE WITH THEIR FAMILIES BUT POSTINDEPENDENCE PENSIONERS MUST LEAVE AT SOME POINT WITH THE 2600 RUSSIAN TROOPS STILL IN ESTONIA THE RUSSIAN MILITARY WHO HAVE RETIRED HERE OR ARE IN RESERVE SHOULD UNDERSTAND ONE THING THEY LIVE ON ETERNAL RUSSIAN LAND HE SAID IN THE NEWSPAPER ARTICLE IF SOME ESTONIAN OFFICIAL GETS THE IDEA OF EXPELLING THEM THEN THOSE RUSSIAN OFFICERS SHOULD CREATE SOME KIND OF UNIT FOR THE DEFENSE OF THEIR HONOR AND DIGNITY NIKOLAI YUGANTSOV HEAD OF THE ASSEMBLY OF RUSSIAN CITIZENS AN INTEREST GROUP RECOGNIZED BY THE ESTONIAN GOVERNMENT SAYS MR ROZHOK JUST WANTS TO MAKE TROUBLE ZHIRINOVSKY ONLY HAS A FEW SUPPORTERS BUT THE MORE THE ESTONIAN GOVERNMENT STIRS THE ISSUE OF ROZHOK THE MORE IT HELPS TO LIFT HIM FROM HIS KNEES PYOTR ROZHOK A BURLY UKRAINIAN WITH THINNING GRAY HAIR AND BLACK EYEBROWS MOVED TO ESTONIA IN 1959 FOR THE PAST 22 YEARS HE HAS WORKED AT A CITY PORT MOST RECENTLY AS A HEATING ENGINEER I'M A WORKER HE SAYS PROUDLY IN RUSSIAN HE SPEAKS NO ESTONIAN IT WAS MR ZHIRINOVSKY'S OUTSPOKEN SUPPORT FOR WORKERS THAT ATTRACTED MR ROZHOK TO THE LIBERAL DEMOCRATIC PARTY IN 1990 ZHIRINOVSKY'S VERY INTELLIGENT HE SAYS HE DOESN'T ONLY DEAL WITH PROFESSORS AND EXPERTS HE TALKS TO COLLECTIVE FARMERS AND WORKERS SO HE KNOWS WHAT'S GOING ON LAST MAY A YEAR AFTER TAKING RUSSIAN CITIZENSHIP MR ROZHOK BECAME MR ZHIRINOVSKY'S PERSONAL ADVISER IN ESTONIA HE REFUSED TO DISCLOSE THE TOTAL NUMBER OF LDP MEMBERS IN ESTONIA BUT BOASTED DURING THE RUSSIAN ELECTIONS IN DECEMBER IN WHICH A QUARTER OF ESTONIA'S 40000 RUSSIAN CITIZENS PARTICIPATED THAT 596 CAST THEIR VOTES FOR MR ZHIRINOVSKY I WAS RIDICULED IN THE PRESS WHEN I PREDICTED THAT ZHIRINOVSKY WOULD GET MORE THAN 20 OF THE VOTE IN RUSSIA HE SAYS THE MAN HAS THE CONFIDENCE OF THE PEOPLE MR YUGANTSOV HOWEVER QUESTIONS MR ZHIRINOVSKY'S POPULARITY IN ESTONIA THERE WERE VOTING IRREGULARITIES SOME PEOPLE VOTED TWO OR THREE TIMES HE EXPLAINS HOWEVER IT'S TOUGH NOT TO AGREE WITH ZHIRINOVSKY'S CONCERN FOR SOCIAL PROBLEMS AND LIVING STANDARDS BUT TO THINK YOU HAVE TO RESTORE THE SOVIET UNION TO SOLVE THAT IS ABSURD THE LDP DOESN'T HAVE ITS OWN OFFICE BUT MR ROZHOK HANGS OUT AT THE STALINESQUE RUSSIAN OFFICERS' HOUSE ONE OF THE LAST HOLDOUTS OF THE SOVIET ERA IN TALLINN UNLIKE THE REST OF THE CAPITAL WHERE SYMBOLS OF THE OLD REGIME HAVE DISAPPEARED PAINTINGS OF MARX AND ENGELS ADORN A THIRDFLOOR HALL A HAMMER AND SICKLE GRACE THE STAGE OF AN ORNATE THEATER WHOSE CEILING IS PAINTED WITH A SCENE OF SMILING PEOPLE MARCHING AND CARRYING RED FLAGS THE RUSSIAN NATIONALIST OPPOSES LDP INFLUENCE ENDING WITH TANKS ROLLING THROUGH THE STREETS OF TALLINN BUT HE ADDS HE CAN ONLY ADVISE HIS LEADER TO USE RESTRAINT HOW ZHIRINOVSKY WILL ACT IN A FREE SITUATION IS UNPREDICTABLE MR ROZHOK SAYS HE IS A VERY GOOD PERSON BUT IF HE'S PRESIDENT HE CAN DO WHAT HE LIKES 9403070042 940307 MARKETING & MEDIA FUTURE OF LEAR'S MAGAZINE IS UNCERTAIN AS WRITERS' FEES ARE SAID TO BE UNPAID BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEAR'S MAGAZINE HASN'T PAID WRITERS AND PHOTOGRAPHERS FOR SEVERAL MONTHS AND ISN'T ASSIGNING ANY NEW STORIES STAFFERS SAY HEIGHTENING UNCERTAINTY ABOUT THE FUTURE OF THE MONTHLY AIMED AT WOMEN OVER 35 RUMORS HAVE CIRCULATED FOR MONTHS IN THE PUBLISHING INDUSTRY THAT THE MAGAZINE IS IN TROUBLE BUT FOUNDER AND OWNER FRANCES LEAR CONTINUES TO DENY SPECULATION THAT LEAR'S WILL CLOSE A SPOKESWOMAN FOR THE MAGAZINE SAID MS LEAR HAS PREVIOUSLY STATED THE MAGAZINE IS IN TRANSITION TO A PUBLICATION FOCUSED ON THE FINANCIAL NEEDS OF WOMEN THE SPOKESWOMAN INSISTS THAT THE WRITERS WILL BE PAID SHE SAID THE CHECKS WILL GO OUT THIS WEEK SHE DIDN'T RESPOND TO QUESTIONS ABOUT FUTURE ISSUES MS LEAR DECLINED TO BE INTERVIEWED INSIDERS AND FORMER STAFFERS SAY THEY FIND TALK OF A TRANSITION PERPLEXING SAYING THAT SINCE HER INTERNAL ANNOUNCEMENT LAST FALL OF SUCH A SHIFT IN DIRECTION MS LEAR HASN'T SHARED ANY SPECIFIC PLANS WITH THEM ABOUT THE CHANGE AT THE SAME TIME LEAR'S EDITORS SAY THAT FREELANCE WRITERS AND PHOTOGRAPHERS HAVEN'T BEEN PAID SINCE LAST FALL AND THAT THE STAFF WAS TOLD TO USE MOSTLY LEFTOVER STORIES FOR THE JUSTCOMPLETED MAY ISSUE THERE ISN'T ANY PREPARATION BEING MADE FOR A JUNE ISSUE OF LEAR'S SEVERAL EDITORS CONFIRMED I HAVE A LIST ON MY DESK OF 11 WRITERS WHO HAVEN'T BEEN PAID PEOPLE I CONVINCED TO WRITE FOR THIS MAGAZINE ONE OF THEM ALONE IS OWED 17000 SAYS SENIOR EDITOR DAVID FRANCE WHO HAS BEEN AT LEAR'S FOR ABOUT 18 MONTHS I SPEND A LOT OF MY TIME TRYING TO GET THE MONEY FOR WRITERS AND THE STORY CHANGES EVERY DAY FIRST THEY ACCOUNTING SAID THE CHECKS WERE ALREADY OUT THEN THAT THEY WOULD BE PAID BY LAST MONDAY NOW I'M TOLD THERE AREN'T ANY COMMITMENTS ABOUT PAY DATES BEING MADE PHOTOGRAPHERS ARE BEGINNING TO COMPLAIN TOO JAMES WHITE SAYS HE IS OWED 3300 FOR TWO SETS OF PHOTOGRAPHS FOR LEAR'S AND LAST WEEK HE FILED A COMPLAINT IN NEW YORK'S CIVIL COURT AGAINST LEAR PUBLISHING INC THE ACCOUNTING DEPARTMENT TOLD ME TWO MONTHS AGO THAT THEY HAD JUST CUT THE CHECK AND NOW THEY WON'T EVEN RETURN MY PHONE CALLS SAYS MR WHITE EDITORS SAY WRITERS AND PHOTOGRAPHERS ARE OWED MORE THAN 200000 IN ALL ALTHOUGH LEAR'S HAS ALWAYS BEEN A MAGAZINE WITH HEAVY STAFF TURNOVER THE RANKS ARE ESPECIALLY DEPLETED RIGHT NOW CAROLINE MILLER WHO HAD BEEN EDITOR IN CHIEF FOR ABOUT TWO YEARS LEFT LAST MONTH TO BE EDITOR OF SEVENTEEN MANAGING EDITOR ROBERT SABAT RECENTLY SKIPPED TO INTERVIEW AND THE CHIEF COPY EDITOR JUST LEFT THERE HAS ALSO BEEN TURMOIL ON THE BUSINESS SIDE A YEAR AGO MS LEAR FIRED ADVERTISING DIRECTOR KIMBERLEE KINER AND PUBLISHER CAROL DECKER QUIT IN PROTEST AFTER JUST 15 MONTHS ON THE JOB WHEN MS LEAR 70 YEARS OLD LAUNCHED HER MAGAZINE IN 1988 WITH PART OF THE PROCEEDS OF AN APPROXIMATELY 100 MILLION DIVORCE SETTLEMENT FROM HER FORMER HUSBAND TV PRODUCER NORMAN LEAR IT WAS LAUDED AS A TIMELY CONCEPT FOR ATTRACTING AGING BABY BOOMER WOMEN AND WAS VIEWED BY AD BUYERS AS A HOT BOOK BUT SINCE THEN LEAR'S HAS BEEN HURT BY COMPETITION ESPECIALLY FROM MIRABELLA LAUNCHED A YEAR LATER A PROLONGED ADVERTISING RECESSION AND MS LEAR'S OWN SELFACKNOWLEDGED VOLATILE PERSONALITY FORMER STAFFERS SAY THEY BELIEVE LEAR'S HAS BEEN UNPROFITABLE EVERY YEAR AND THAT MS LEAR HAS INVESTED MORE THAN 25 MILLION IN THE MAGAZINE THE MAGAZINE'S SPOKESWOMAN DECLINED TO COMMENT IN ITS FIRST YEAR LEAR'S SOLD 426 PAGES OF ADS IN SIX BIMONTHLY ISSUES AND CLOSED ITS FIRST YEAR WITH CIRCULATION OF 350000 NOW PAID CIRCULATION HAS REACHED 500000 BUT AD SALES ARE HURTING PAGES DECLINED TO 438 LAST YEAR FROM 485 IN 1991 IN COMPARISON NEWS CORP'S MIRABELLA SOLD 798 PAGES LAST YEAR AND CONDE NAST PUBLICATIONS INC'S VOGUE MAGAZINE SOLD 2566 LEAR'S DECEMBER ISSUE CARRIED 32 PAGES OF ADS AND ONE LEAR'S EDITOR SAYS MAY'S JUST COMPLETED ISSUE HAS ONLY 25 SOME AD SALES WERE LOST INSIDERS SAY WHEN LEAR'S SHARPLY CURTAILED ITS FASHION COVERAGE ABOUT 18 MONTHS AGO UNABLE TO COMPETE FOR TOP FASHION PHOTOGRAPHERS WITH THE LIKES OF DEEPPOCKETED VOGUE STAFFERS SAY THAT UNDER EDITOR CAROLINE MILLER THE MAGAZINE'S WRITING AND DESIGN HAD IMPROVED HELPING TO DRAW NEW SUBSCRIBERS IF NOT ADVERTISERS BUT EDITORS SAY ONCE MS LEAR TURNED THE MAGAZINE OVER TO MS MILLER SHE BECAME LESS INVOLVED AND INTERESTED IN IT PURSUING BOOKWRITING AND A NEW VIDEO VENTURE A VIDEO IS SAID TO BE NEARLY COMPLETED THAT PROVIDES FINANCIAL ADVICE TO WOMEN WE TOOK A BEATING IN THE RECESSION LIKE EVERYBODY ELSE BUT UNDER CAROLINE WE WERE PUTTING OUT A GOOD MAGAZINE SAYS LARKIN WARREN SENIOR EDITOR WE HAD A LOT OF REASONS FOR OPTIMISM BUT NOW IT LOOKS PRETTY MURKY MAGAZINE EXPERTS SAY LEAR'S ILLUSTRATES AMONG OTHER THINGS HOW DIFFICULT IT IS TO COMPETE AS A PUBLISHER OF A SINGLE TITLE IT IS TOUGH TO COMPETE WITH THE LIKES OF CONDE NAST AND HEARST WHEN THEY CAN PROVIDE PACKAGED RATES ACROSS A NUMBER OF MAGAZINES SAYS MAGAZINE CONSULTANT MARTIN WALKER I THINK FRANCES' TIMING IN STARTING IT WAS VERY GOOD BUT THERE WASN'T ANY CONSISTENCY SHE WOULD INTERFERE THEN SHE WOULDN'T RUMORS HAVE BEEN FLYING ABOUT THIS MAGAZINE FOR AT LEAST TWO YEARS AND CLEARLY SOMEBODY TOOK THEIR EYE OFF THE BALL SAYS ROBERTA GARFINKLE SENIOR VICE PRESIDENT DIRECTOR OF PRINT MEDIA FOR AD AGENCY MCCANN ERICKSON IT'S A SMALL NICHE PUBLICATION AND ADVERTISERS HAVE MORE EFFICIENT WAYS TO SPEND THEIR MONEY UNCERTAINTY GIVES THEM JUST ANOTHER REASON TO STAY AWAY 9403070041 940307 BUSINESS BRIEF NOVA CORP BOW VALLEY SELLS ITS SHARES OF GREAT WEST TO NOVAGAS NOVAGAS CLEARINGHOUSE LTD SAID IT PURCHASED ALL THE OUTSTANDING SHARES OF GREAT WEST ENERGY LTD OF MISSISSAUGA ONT FROM BOW VALLEY ENERGY INC TERMS WEREN'T DISCLOSED NOVAGAS IS A NATURAL GAS SERVICES ENTERPRISE JOINTLY OWNED BY NOVA CORP OF ALBERTA AND NATURAL GAS CLEARINGHOUSE OF HOUSTON GREAT WEST IS AN ESTABLISHED NATURAL GAS MARKETING COMPANY WHOSE CUSTOMERS INCLUDE COMMERCIAL AND INDUSTRIAL ACCOUNTS AND LOCAL DISTRIBUTION COMPANIES NOVAGAS SAID IT WILL OFFER EMPLOYMENT TO ALL GREAT WEST EMPLOYEES THE PURCHASE IS EFFECTIVE IMMEDIATELY NOVAGAS ADDED 9403070039 940307 BUSINESS BRIEF NEXTEL COMMUNICATIONS INC SERVICE IS PLANNED WITH UNIT OF MOTOROLA AND CLEARNET NEXTEL COMMUNICATIONS INC SAID IT PLANS TO TEAM UP WITH A UNIT OF MOTOROLA INC AND CLEARNET INC TO OFFER VOICE AND DATA SERVICE ON POCKETPHONES IN CANADIAN MARKETS NEXTEL RUTHERFORD NJ EARLIER AGREED TO ISSUE ABOUT 355 MILLION SHARES IN EXCHANGE FOR CERTAIN DISPATCH COMMUNICATIONS PROPERTIES HELD BY MOTOROLA MOTOROLA WILL TRANSFER PART OF ITS STAKE IN CLEARNET TO NEXTEL MOTOROLA'S STAKE IS HELD BY ITS MOTOROLA CANADA LTD UNIT AT THE END OF THE DAY WE'LL OWN ABOUT 35 OF CLEARNET A NEXTEL SPOKESMAN SAID CLEARNET A CLOSELY HELD PROVIDER OF DISPATCH SERVICES IN PICKERING ONTARIO IS CONSIDERING PLANS TO GO PUBLIC THIS YEAR NEXTEL WHICH OPERATES DISPATCH SERVICES FOR TAXICABS AND OTHER FLEET SERVICES HAS AMBITIOUS PLANS TO BUILD A DIGITAL COMMUNICATIONS NETWORK IN THE US AND SELL VOICE DATA AND DISPATCH SERVICE ON CELLULARLIKE PHONES THE LATEST AGREEMENT WOULD ALLOW NEXTEL CUSTOMERS TO USE THEIR PHONES IN CANADA MCI COMMUNICATIONS INC RECENTLY AGREED TO INVEST 136 BILLION IN NEXTEL IN RETURN FOR A 17 STAKE 9403070038 940307 LEISURE & ARTS TELEVISION GIVE HIM HAIR AND A MARGE OF HIS OWN BY DOROTHY RABINOWITZ JUST WHEN IT BEGAN TO SEEM TIME TO STOP HOPING FOR MUCH FROM THE CRITIC THE ANIMATED SITCOM FROM THE FORMER EXECUTIVE PRODUCERS OF THE SIMPSONS WAS SUDDENLY IN TOP FORM ON WEDNESDAY IT IS A BIT EARLY TO TALK ABOUT THE CRITIC IN TERMS OF FORM OF COURSE GIVEN THE SHOW'S SHAPELESSNESS AND ITS INDECISIVENESS AS TO NATURE OF THE CRITIC HIMSELF THE TUBBY FILM EXPERT AND ARBITER OF CULTURE JAY SHERMAN WHETHER HE IS A DOLT AN INTELLECTUAL A SNIVELING TOADY A LONELY MAN OF PRINCIPLE OR JUST A SHORTERTHANAVERAGE VERSION OF THE VARIOUS YUPPIE LOUTS DISCOURSING ABOUT MOVIES ON REAL TV SCREENS NOWADAYS DEPENDS ENTIRELY ON WHICH EPISODE OF THE CRITIC ONE HAS BEEN WATCHING OVER THE LONG HAUL THIS WILL NEVER DO STILL WHEN THE SHOW IS GOOD IT IS VERY GOOD ONE REASON MAY HAVE BEEN THE RELATIVE ABSENCE OF THE CHARACTERS REPRESENTING JAY'S FAMILY IN PARTICULAR THE TWO TWITS WHO ARE SUPPOSED TO BE HIS RICH ADOPTIVE PARENTS WE'VE COME TO SEE A GOOD DEAL OF THIS DEMENTED FATHER AND VIRAGO SOCIALITE MOTHER IN THE SIX EPISODES OF THE CRITIC SHOWN SO FAR NO ASPECT OF THEIR CHARACTERS RING REMOTELY TRUE THERE IS SOMETHING ABOUT THE VERY RICH AND THE UPPER CLASSES GENERALLY THAT SEEMS BEYOND THE IMAGINATION OF MODERN AMERICAN WRITERS AS A WHOLE TO SAY NOTHING OF TV WRITERS AFTER ALL TO SATIRIZE A CLASS OF PEOPLE ONE MUST ACTUALLY KNOW SOMETHING ABOUT THEM CONTEMPT IS NOT ENOUGH COMPARE THIS IMPLAUSIBLE COUPLE TO THE ELDER SIMPSONS IF NOTHING ELSE THE GROSS CARICATURES OF JAY'S PARENTS SERVE AS REMINDERS OF THE SIMPSONS' EXTRAORDINARY STRENGTH AND AMBITION WE ARE TALKING ABOUT THE SHOW THAT NEVER YIELDS A CHARACTER THAT ISN'T CHISELED WITH CARE BY WRITERS WHO KNOW THE LANGUAGE AND TONE OF EVERYONE WOVEN INTO THE ACTION FROM THE POMPOUS SCHOOL PRINCIPAL TO THE PAKISTANI 7ELEVEN STORE OWNER APU TO HOMER'S DETESTED TWIN SISTERSINLAW THOSE BIGHAIRED VIPERISH HOMERHATING WITS THE WORLD HAS COME TO KNOW AS MARGE'S SISTERS ARE PURE NEW YORK THE CULTURE THE WRITERS KNOW IN THEIR BONES NOT FOR NOTHING DO THEIR SNEERS AND INSULTS RING SO TRUE THE CRITIC HAS ITS OWN CHARMS AS WAS ESPECIALLY CLEAR IN THE MOST RECENT SHOW WRITTEN BY TOM BRADY IN WHICH JAY CAMPAIGNS FOR A PULITZER ALL EPISODES OF THE CRITIC BEGIN WITH A WAKEUP CALL FOR JAY FROM ONE TORMENTER OR ANOTHER IN HIS LIFE HIS DIMWITTED STATIONOWNER BOSS A TED TURNER LOOKALIKE HIS MOTHER ETC THIS SHOW IT IS THE CRITIC'S FORMER WIFE WHO CALLS TO COMPLAIN THAT HER ALIMONY CHECK IS 19 MINUTES LATE JAY HAS MUCH ELSE ON HIS MIND SINCE THIS DAY IS THE 1000TH AIRING OF HIS SHOW BUT NO ONE COMES TO THE ANNIVERSARY PARTY THROWN FOR HIM AT THE GLAMOROUS DRINK N' DRIVE INN JAY GETS TOSSED OUT OF THE MOVIECRITIC BUSINESS THOUGH HE STILL MANAGES TO STAY ON THE AIR THIS TIME AS AN INSTRUCTOR ON A WONDERFUL EARLY MORNING TV SHOW TITLED ENGLISH FOR CABDRIVERS HERE NOW IS SERIOUS FUN THE POLYGLOT THEATER OF THE ABSURD THAT NEW YORKERS FACE EVERY TIME THEY GET IN A TAXI AND TRY TO COMMUNICATE IN ENGLISH WITH A DRIVER WHOSE ONLY TONGUE IS URDU OR LAPP THE LANGUAGE BARRIER IS NEEDLESS TO SAY THE LEAST OF THE DANGERS CONFRONTING A REGULAR RIDER OF THE CITY'S TAXIS NOT FOR NOTHING DOES THE NOW FORMER MOVIE CRITIC TEACH HIS CABDRIVER STUDENTS HOW TO SAY HE WAS ALREADY DEAD WHEN I HIT HIM IN DUE TIME JAY WHO HAS HIS HEART SET ON A PULITZER AS A WAY OF RECLAIMING HIS CAREER INTERSPERSES THE CABBIE LESSONS WITH ATTACKS ON BAD MOVIES IF THE FILM USED TO BE A TV SHOW AN EXHAUSTED AND UNSHAVEN JAY HOARSELY PLEADS DON'T GO IF THE FILM IS A REMAKE OF A CLASSIC HE IMPLORES RENT THE CLASSIC IN SHORT ORDER JAY DOES WIN THE PULITZER AND GETS HIS MOVIE CRITIC'S JOB BACK SO HE TRIUMPHS IN THE END SOMETHING THAT WOULD NEVER HAPPEN TO THAT OTHER TUBBY ANTIHERO HOMER SIMPSON WHO REMAINS A CONSISTENT AND BELOVED LOSER ONE OF THE MAIN TROUBLES WITH THE CRITIC'S JAY IS OF COURSE THAT HE IS NEITHER CONSISTENT NOR BELOVED NOR DOES IT HELP THAT THE ARTISTS' CONCEPTION OF JAY WHO HAS A SAWEDOFF SCALP AND THREE HAIRS ISN'T PARTICULARLY INSPIRED HE IS IN SHORT NO FUN TO LOOK AT AND HOMER SIMPSON IS YOU BET YOU SHOULD HAVE SEEN HIM JUST NOW IN HIS ASTRONAUT SUIT ALONGSIDE BUZZ ALDRIN AFTER BEING SELECTED FOR THE NASA PROGRAM WHAT FOLLOWED WAS SIMPSONITE COMEDY AT ITS BILIOUS BEST WE LEARN THAT NASA WHOSE TELEVISED LANDINGS SUFFER FROM LOW RATINGS HAS CHOSEN HOMER BECAUSE AGENCY OFFICIALS HAVE FIGURED OUT THAT HIGH TV RATINGS ARE ALL GOING TO PROGRAMS ABOUT BLUECOLLAR SLOBS UP IN SPACE WE ALSO WATCH THE ASTRONAUTS PERFORM THEIR ROUTINE JOBS WHICH INCLUDE JETTISONING CHILDREN'S LETTERS TO GOD HOMER JOINS THE SPACE PROGRAM BECAUSE HE FEELS NO ONE RESPECTS HIM AT WORK AS EVER THE DEVOTED MARGE IS THERE TO ASSURE HIM SHE'S RESPECTED HIM FROM THE FIRST DAY SHE MET HIM NEVER MIND THE FACT THAT AT THE TIME HE DIDN'T KNOW HOW TO USE A TOUCHTONE PHONE THIS SORT OF UNSWERVING DEVOTION IS OF COURSE THE CRUCIAL ELEMENT THAT IDENTIFIES HOMER AS A HERO OF SORTS SOMEONE WISE GOOD AND TRUE IF ALSO CLEARLY BLIND LOVES HIM AS NO ONE LOVES JAY A REALLIFE MOVIE CRITIC ONCE NOTED THAT IT WAS MOSTLY THE ADORATION IN BARBRA STREISAND'S EYES WHEN SHE LOOKED AT HIM THAT MADE ROBERT REDFORD SEEM SO OVERWHELMINGLY GORGEOUS AS HUBBELL IN THE WAY WE WERE ALL RIGHT JAY IS A FAR CRY FROM ROBERT REDFORD BUT THE CREATORS OF THE CRITIC MIGHT AT LEAST WANT TO CONSIDER GETTING HIM A MARGE OR OTHERWISE SHORING UP THE APPEAL OF THIS ALLAROUND LOSER IT WOULDN'T HURT EITHER TO RETHINK HIS HAIR 9403070037 940307 LITTLE CHANGE DESPITE CLINTON'S VOW TO REFORM THE CAPITAL IT'S BUSINESS AS USUAL A SERIES OF ETHICAL LAPSES DIVERTS THE WHITE HOUSE AND MR NUSSBAUM QUITS A TOUGH PLACE TO OPERATE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON CAME TO THE NATION'S CAPITAL VOWING TO END THE CITY'S NOTORIOUS LAXITY IN ETHICAL STANDARDS INSTEAD AS THE LATEST WHITEWATER DISCLOSURES SHOW HIS ADMINISTRATION OFTEN HAS REVERTED TO BUSINESS AS USUAL THE LATEST EXAMPLE IS BERNARD NUSSBAUM WHO RESIGNED OVER THE WEEKEND AS WHITE HOUSE COUNSEL AND WHO WAS SUPPOSED TO BE THE ADMINISTRATION'S ETHICAL WATCHDOG ALTHOUGH HE DEFENDED HIS ACTIONS AS PROPER MR NUSSBAUM TOOK PART IN A SERIES OF MEETINGS THAT RECALL PRESIDENT NIXON'S WIDELY CONDEMNED MEDDLING INTO THE WORKINGS OF INDEPENDENT FEDERAL AGENCIES WITH MR NUSSBAUM PRESENT WHITE HOUSE AIDES MET THREE TIMES WITH TOP OFFICIALS OF THE TREASURY DEPARTMENT AND THE RESOLUTION TRUST CORP ABOUT THE AGENCIES' INVESTIGATIONS INTO A FAILED ARKANSAS THRIFT THE MADISON GUARANTY SAVINGS & LOAN WAS ONCE OWNED BY PRESIDENT CLINTON AND HILLARY RODHAM CLINTON'S PARTNER IN THE WHITEWATER REALESTATE VENTURE HOW COULD THIS HAVE HAPPENED HOW DID THESE DEMOCRATS WHO CAME OF AGE IN THE POSTWATERGATE ERA AND WHO WERE SO CRITICAL OF THE ETHICAL LAPSES OF RECENT REPUBLICAN ADMINISTRATIONS GET CAUGHT ACTING LIKE THEIR PREDECESSORS PART OF THE ANSWER MAY BE THAT OPERATING IN WASHINGTON IS TOUGHER THESE DAYS EVER SINCE WATERGATE THE MEDIA HAVE GOTTEN MORE AGGRESSIVE ABOUT EXPOSING AND THE PUBLIC APPEARS LESS WILLING TO TOLERATE A RANGE OF PERCEIVED ETHICAL SLIPS MR NUSSBAUM IS THE VICTIM OF THE SCANDAL MACHINE IN WHICH THE COMBINED CURRENTS OF LAW ENFORCEMENT POLITICS AND THE PRESS CREATE A BERMUDA TRIANGLE THROUGH WHICH ONLY THE MOST SOPHISTICATED LEGAL SAILORS IN THE WAYS OF WASHINGTON CAN NAVIGATE SAYS ROBERT BENNETT A SEASONED CRIMINALDEFENSE LAWYER WHO PRACTICES IN THE WASHINGTON OFFICE OF SKADDEN ARPS SLATE MEAGHER & FLOM YET IT DOESN'T TAKE A HIGHLY REFINED SENSE OF ETHICS TO SEE THAT SOMETHING HAS GONE BADLY ASKEW AND NOT ONLY IN THE WHITEWATER CASE ACCORDING TO PARTICIPANTS ADMINISTRATION OFFICIALS HAVE BEEN TREATING THE DEMOCRATIC PARTY'S BIGGEST CAMPAIGN GIVERS TO REGULAR HIGHLEVEL BRIEFINGS BOTH IN WASHINGTON AND IN WARMWEATHER VACATION SPOTS DESPITE THE PRESIDENT'S RHETORIC OVER THE NEED TO REFORM CAMPAIGN FINANCING MR CLINTON HIMSELF CONTINUES TO RAISE MILLIONS OF DOLLARS FOR DEMOCRATS THE REVOLVING DOOR CONTINUES TO TURN DESPITE MR CLINTON'S PLEDGES TO JAM IT LATE LAST YEAR DEPUTY CHIEF OF STAFF ROY NEEL AN ARCHITECT OF THE ADMINISTRATION'S PLANS FOR AN INFORMATION SUPERHIGHWAY RESIGNED TO BECOME A HIGHLY PAID LOBBYIST FOR THE TELECOMMUNICATIONS INDUSTRY MR CLINTON HIRED INTO THE TOP LEVELS OF HIS ADMINISTRATION MANY OF THE TYPES OF LOBBYISTS HE VILIFIED DURING THE CAMPAIGN BOTH OF HIS TOP LEGISLATIVE CHIEFS HOWARD PASTER AND HIS SUCCESSOR PATRICK GRIFFIN WERE HIGHPRICED LOBBYISTS BEFORE COMING TO THE WHITE HOUSE MR PASTER IS NOW CHAIRMAN OF HILL & KNOWLTON INC A PUBLICRELATIONS AND LOBBYING FIRM A RAFT OF OUTSIDER CRONIES OF THE PRESIDENT AND FIRST LADY HAS BEEN GIVEN SPECIAL ACCESS TO THE WHITE HOUSE FORMER ARKANSAS REP BERYL ANTHONY AND FORMER CLINTON AIDE BETSEY WRIGHT BECAME CORPORATE LOBBYISTS WHO GOT THEIR WAY MORE THAN ONCE TELEVISION PRODUCER HARRY THOMASON GOT A TEMPORARY WHITE HOUSE OFFICE AND WAS INSTRUMENTAL IN DISMISSING THE WHITE HOUSE TRAVEL STAFF THE HANDLING OF THE TRAVEL OFFICE FIRINGS WAS ANOTHER EXAMPLE OF ILLADVISED INTERFERENCE IN LAWENFORCEMENT MATTERS THE WHITE HOUSE COUNSEL'S OFFICE CONTACTED THE FEDERAL BUREAU OF INVESTIGATION DIRECTLY TO SEEK AN INVESTIGATION OF ALLEGATIONS OF WRONGDOING BY THE TRAVEL STAFF AND SAT IN ON THE PREPARATION OF AN FBI NEWS RELEASE ABOUT THE MATTER DRAWING A REBUKE FROM ATTORNEY GENERAL JANET RENO WHILE HE BILLED HIMSELF AS AN OUTSIDER MR CLINTON ARRIVED AT THE WHITE HOUSE WITH STERLING CONNECTIONS TO ESTABLISHMENT WASHINGTON AND SOON BEGAN HIRING THE CITY'S BESTKNOWN LAWYERS AND LOBBYISTS MR NUSSBAUM A NEW YORK ATTORNEY WAS ONE OF THE FEW WHO CAME FROM OUTSIDE THE WASHINGTON/ARKANSAS AXIS SOME SAY THIS LOYAL BAND OF ADVISERS MANY OF WHOM HAVE KNOWN MR AND MRS CLINTON SINCE THEIR DAYS AS ACTIVISTS AGAINST THE VIETNAM WAR LACKS THE INDEPENDENCE TO ALERT THE CLINTONS TO THE NEED FOR HIGHER ETHICAL STANDARDS MOREOVER THE SHARED ASSUMPTION OF THOSE WHO POPULATE THE CLINTON WHITE HOUSE SEEMS TO BE THAT BECAUSE THEY ALL VIEW THEMSELVES AS GOOD PEOPLE THE PUBLIC SHOULDN'T QUESTION THEIR MOTIVES SOME CRITICS SEE THIS AS A KIND OF BABYBOOMER ARROGANCE THAT HAS MADE CLINTON OFFICIALS TOO QUICKLY DISMISSIVE OF ETHICS QUESTIONS AT THE SAME TIME MR CLINTON AND HIS ARKANSAS CREW COME FROM A MUCH MORE FREEWHEELING AND FORGIVING ENVIRONMENT THE WHITEWATER CASE ALONE MAKES CLEAR THAT THE WORLDS OF BUSINESS AND POLITICS OVERLAP MORE OFTEN AND MORE CASUALLY BACK HOME THAN IS THE CUSTOM IN BUTTONEDDOWN WASHINGTON MR CLINTON'S HIGHLY PERSONAL STYLE ALSO PLAYS A ROLE THE OFFICIALS WITH THE MOST CLOUT ARE THE ONES WHO ARE CLOSEST TO THE PRESIDENT AND HIS WIFE FROM THE WHITE HOUSE PERSPECTIVE THIS BREEDS STRONG LOYALTY THE DOWNSIDE IS THAT MANY OF THE LOYALISTS SEEM TO HAVE A BLIND SPOT FOR THE PUBLIC INTEREST INDEED THE KIND OF CRONYISM THAT DREW CONTROVERSY TO THE WHITE HOUSE UNDER PRESIDENTS CARTER AND REAGAN IS CROPPING UP AGAIN TAKE THE CASE OF WEBSTER HUBBELL ONE OF THE PRESIDENT'S CLOSEST FRIENDS WHO ALSO IS THE THIRDRANKING OFFICIAL AT THE JUSTICE DEPARTMENT THE FORMER LITTLE ROCK LAWYER DIDN'T THINK IT WAS NECESSARY TO DISCLOSE TO THE WHITE HOUSE THAT HIS OWN FIRM WAS PROBING WHETHER HE OVERBILLED THE FEDERAL GOVERNMENT HE NOW WORKS FOR THE WHITE HOUSE WHICH IS FILLED WITH MR HUBBELL'S HOMETOWN CHUMS AND AT LEAST TWO OF HIS FORMER LAW PARTNERS INCLUDING MRS CLINTON BELIEVES IT DOESN'T NEED TO DO ANYTHING MORE THAN TAKE MR HUBBELL'S WORD THAT HE IS INNOCENT EVEN NOW THAT THE INQUIRY HAS BEEN MADE PUBLIC MORE BROADLY MR CLINTON HASN'T POURED MUCH OF HIS ENERGY INTO FULFILLING ONE OF HIS KEY CAMPAIGN PLEDGES TO OVERHAUL THE CAMPAIGNFINANCE SYSTEM AND TO INCREASE LOBBYING DISCLOSURE DURING THE PRESIDENTIAL ELECTION IN 1992 HE COULD HARDLY STOP TALKING ABOUT THE STRANGLEHOLD THAT SPECIAL INTERESTS HAD ON THE GOVERNMENT AND HOW HE WOULD WORK TO LOOSEN IT BUT THINGS HAVEN'T CHANGED MUCH SINCE MR CLINTON CAME TO TOWN WHILE PROFESSING INTEREST IN CHANGING THE SYSTEM PRESIDENT CLINTON AND HIS TOP OFFICIALS HAVE BEEN WORKING TO SQUEEZE WHAT THEY CAN OUT OF THE PRESENT ONE THE DEMOCRATIC NATIONAL COMMITTEE MAINTAINS A VIGOROUS SCHEDULE OF BRIEFINGS BY CLINTON AND PARTY OFFICIALS AROUND TOWN FOR MAJOR MONEY GIVERS ACCORDING TO PEOPLE WHO HAVE TAKEN PART IN THE EVENTS IN LATE FEBRUARY THE DNC HELD A WEEKEND RETREAT FOR CONTRIBUTORS AT THE BOCA RATON RESORT & CLUB IN FLORIDA IN ATTENDANCE WERE VICE PRESIDENT AL GORE COMMERCE SECRETARY RONALD BROWN HOUSE MAJORITY LEADER RICHARD GEPHARDT AND REP SAM GEJDENSON OF CONNECTICUT A PRIMARY AUTHOR OF THE HOUSE'S CAMPAIGNFINANCE OVERHAUL BILL LAST APRIL BIG CAMPAIGN CONTRIBUTORS TO THE DNC WERE TREATED TO SPEECHES AT THE MADISON HOTEL IN WASHINGTON BY TOP CLINTON OFFICIALS RANGING FROM WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY TO NATIONAL ECONOMIC ADVISER ROBERT RUBIN PARTICIPANTS SAY THE NIGHT WAS CAPPED WHEN EACH GIVER HAD HIS PHOTOGRAPH TAKEN WITH MR GORE REFERRING TO THE REPUBLICANS' MIRROR PROGRAM FOR MAJOR CONTRIBUTORS RAYMOND MCGRATH PRESIDENT OF THE BEER INSTITUTE AND A FORMER GOP CONGRESSMAN SAYS IT'S GENERALLY THE SAME KIND OF THING AS A LOBBYIST NOW MR MCGRATH IS A MEMBER OF BOTH THE REPUBLICAN AND DEMOCRATIC BIGGIVER GROUPS IT'S IMPORTANT TO PORTRAY OURSELVES AS BIPARTISAN HE SAYS SENATE MAJORITY LEADER GEORGE MITCHELL WHO ANNOUNCED ON FRIDAY THAT HE WOULDN'T SEEK REELECTION STRENUOUSLY DISMISSES THE NOTION THAT HE IS QUITTING BECAUSE OF DISGUST WITH WASHINGTON BUT HIS RETIREMENT ANNOUNCEMENT WHICH WASN'T ANTICIPATED HAS INEVITABLY FED THE IMPRESSION THAT LIFE INSIDETHEBELTWAY HAS BECOME SO BRUTISH THAT EVEN ITS MOST BATTLESCARRED VETERANS ARE GETTING OUT AMONG OTHER ISSUES MR MITCHELL A SUPPORTER OF MR CLINTON'S LEGISLATIVE AGENDA HAS BEEN A TIRELESS FIGHTER FOR STRINGENT CAMPAIGNFINANCE OVERHAUL ONLY TO SEE HIS BILL TO HELP END THE MONEY CHASE BECOME MIRED IN CONGRESSIONAL GRIDLOCK EVEN THE MAN MR CLINTON HAS PUT IN CHARGE OF CONTROLLING THE DAMAGE FROM THE INVESTIGATIONS INTO THE CLINTONS' POLITICAL AND BUSINESS DEALINGS IN ARKANSAS DEPUTY CHIEF OF STAFF HAROLD ICKES JUST LAST YEAR LOBBIED FOR THE PUERTO RICAN GOVERNMENT TO SAVE A BILLIONDOLLAR TAX BREAK THAT MR CLINTON HAD WANTED TO CURTAIL IRONICALLY MR ICKES IS NOW CAUGHT UP IN THE WHITE HOUSE'S EMBARRASSMENT HE IS ONE OF THE SIX SENIOR WHITE HOUSE OFFICIALS WHO HAVE BEEN SUBPOENAED TO APPEAR BEFORE A GRAND JURY EMPANELED BY THE SPECIAL COUNSEL ROBERT FISKE ONE OF THE OTHERS IS MR NUSSBAUM WHO IN A RESIGNATION LETTER SENT TO THE PRESIDENT SATURDAY DEFENDED HIS PERFORMANCE AND CRITICIZED THOSE WHO DO NOT UNDERSTAND NOR WISH TO UNDERSTAND THE ROLE AND OBLIGATIONS OF A LAWYER HIS RESIGNATION IS EFFECTIVE APRIL 5 A SEPARATE SUBPOENA REQUIRES THE WHITE HOUSE TO PRODUCE DOCUMENTS ON ANY MEETINGS CONVERSATIONS OR CONTACTS BETWEEN ANY WHITE HOUSE STAFFERS AND OFFICIALS OF THE TREASURY OR THE RTC NOTHING HAS SURPASSED THE WHITEWATER CONTROVERSY IN UNDERSCORING THAT THIS WHITE HOUSE IS REPEATING SOME OF HISTORY'S BLEAKEST CHAPTERS IN THE WAKE OF LAST SUMMER'S APPARENT SUICIDE OF MR NUSSBAUM'S DEPUTY VINCENT FOSTER THE WHITE HOUSE COUNSEL WAS ACCUSED BY THE PARK POLICE OF IMPEDING THEIR INVESTIGATION FIRST MR NUSSBAUM FAILED TO SEAL MR FOSTER'S OFFICE THEN HE WOULDN'T PERMIT THE POLICE INVESTIGATORS TO LOOK THROUGH ANY OF MR FOSTER'S PAPERS HE ALSO FAILED TO TURN UP A SUICIDE NOTE THAT WAS LATER FOUND IN MR FOSTER'S BRIEFCASE THE WHITE HOUSE BELATEDLY TURNED THE NOTE OVER TO INVESTIGATORS A BASIC RULE OF POLITICAL DAMAGE CONTROL IN WASHINGTON IS TO ERR ON THE SIDE OF CANDOR ESPECIALLY WHERE DOCUMENTS ARE CONCERNED BUT MR NUSSBAUM VIOLATED THIS RULE AGAIN AND AGAIN FIRST WHEN HE ADVISED THE CLINTONS TO ASSERT ATTORNEY/CLIENT PRIVILEGE OVER THE WHITEWATER FILE FOUND IN MR FOSTER'S OFFICE THEN WHEN HE HELPED ARRANGE FOR THE JUSTICE DEPARTMENT TO SUBPOENA THE FILE TO KEEP IT AWAY FROM REPORTERS WHO HAD FILED FREEDOM OF INFORMATION ACT REQUESTS OTHER MISSTEPS THAT SANK THE WHITE HOUSE DEEPER INTO THE WHITEWATER SWAMP WERE MR NUSSBAUM'S AND MRS CLINTON'S OPPOSITION TO THE APPOINTMENT OF A SPECIAL COUNSEL TO INVESTIGATE THE MATTER AND THE THREE MEETINGS WITH TREASURY AND RTC OFFICIALS WHICH PRESAGED THE WHITE HOUSE COUNSEL'S DOWNFALL A MAJOR TEST OF WHETHER THE WHITE HOUSE INTENDS TO REALLY PRESS FOR CHANGE WILL BE ITS CHOICE TO REPLACE MR NUSSBAUM ON NBCTV'S MEET THE PRESS YESTERDAY MR GORE AGREED THAT THE CHOICE WAS IMPORTANT AND SAID HE EXPECTED IT TO CAUSE PEOPLE TO SAY YEAH THAT'S A REALLY GOOD PICK WHITE HOUSE INSIDERS EXPECT WHOEVER IS CHOSEN WILL HAVE INTEGRITY AND INDEPENDENCE AND CONSIDERABLE EXPERIENCE IN WASHINGTON 9403070036 940307 INTERNATIONAL BRIEF CS HOLDING AG CREDIT SUISSE'S 1993 PROFIT ROSE 53 ABOVE FORECASTS RIDING A BOOM IN TRADING AND PORTFOLIO MANAGEMENT CREDIT SUISSE REPORTED A 53 SURGE IN 1993 PROFIT PROFIT LAST YEAR SOARED TO 146 BILLION SWISS FRANCS 102 BILLION FROM 955 MILLION FRANCS IN 1992 THE PROFIT GAINS CAME DESPITE AN 87 INCREASE IN WRITEDOWNS PROVISIONS AND LOAN LOSSES ALTHOUGH CREDIT SUISSE HAD LONG BEEN EXPECTED TO REPORT RECORD PROFITS JAMES STETTLER ANALYST AT LONDONBASED ENSKILDA RESEARCH SAID CREDIT SUISSE'S EARNINGS WERE ABOVE EXPECTATIONS THE GROUP'S TRADING INCOME MORE THAN DOUBLED TO 34 BILLION FRANCS IN 1993 FROM 15 BILLION FRANCS IN 1992 ACCOUNTING FOR 37 OF ALL REVENUE CREDIT SUISSE WHICH ISN'T PUBLICLY LISTED ACCOUNTS FOR THE BULK OF THE EARNINGS OF ITS SWISS PARENT CS HOLDING AG 9403070034 940303 POOR POOR MOTOROLA BY SCOTT LATHAM IN THREATENING TO IMPOSE UNILATERAL TRADE SANCTIONS AGAINST TOKYO THE CLINTON ADMINISTRATION HAS TAKEN UP THE CUDGELS ON BEHALF OF MOTOROLA INC AND TRIED TO PORTRAY THE TELECOMMUNICATIONS GIANT AS A VICTIM OF JAPANESE PROTECTIONISM AND BUREAUCRATIC FOOTDRAGGING THIS IS IN MANY WAYS A CLASSIC CASE OF THE DETERMINATION OF JAPAN TO KEEP ITS MARKETS CLOSED SAID US TRADE REPRESENTATIVE MICKEY KANTOR SHORTLY AFTER THE CLINTONHOSOKAWA SUMMIT FELL APART IN RECRIMINATION OVER TRADE PRESIDENT CLINTON IS EXPECTED TO SIGN AN EXECUTIVE ORDER AS EARLY AS TODAY TO REINSTATE THE SUPER 301 TRADE PROVISION TARGETING JAPAN FOR PUNITIVE TARIFFS THE US HAS PUBLICLY ACCUSED THE JAPANESE OF RENEGING ON THEIR PROMISES AND THROWING UP BARRIER AFTER BARRIER TO BLOCK MOTOROLA'S MARKET ACCESS NOTHING COULD BE FURTHER FROM THE TRUTH THE HISTORY OF MOTOROLA IN JAPAN REVEALS A COMPANY THAT HAS REPEATEDLY USED THE US GOVERNMENT AS A BATTERING RAM TO KNOCK ASIDE JAPANESE REGULATIONS AND WIN SPECIAL FAVORS TO ACCELERATE MARKET ENTRY MR KANTOR'S LATEST MOTOROLA GAMBIT NOT ONLY INCLUDES DEMANDS FOR A SPECIFIC MARKET SHARE IN JAPAN BUT WOULD ACTUALLY COMPEL A PRIVATE JAPANESE COMPANY TO PREPURCHASE A LARGE QUANTITY OF SOONTOBEOBSOLETE MOTOROLA EQUIPMENT IN A KIND OF YEAREND CLEARANCE SALE FAILURE TO COMPLY WITH THESE DEMANDS WOULD REQUIRE THE JAPANESE GOVERNMENT TO BREAK UP THIS JAPANESE COMPANY ASSIGN ITS LICENSE TO A THIRD PARTY AND FORCIBLY TRANSFER CELLULAR FREQUENCIES FROM A COMPETING SYSTEM TO MOTOROLA IS IT ANY WONDER PRIME MINISTER HOSOKAWA SAID NO TO UNDERSTAND THE EGREGIOUSNESS OF THE AMERICAN POSITION WE NEED TO GO BACK TO 1985 WHEN LIONEL OLMER THEN THE US UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE WROTE THE JAPANESE VICE MINISTER FOR POSTS AND TELECOMMUNICATIONS THAT THE CELLULAR TELEPHONE SYSTEM THEN IN USE ALL OVER JAPAN WAS NOT COMPATIBLE WITH US OR EUROPEAN STANDARDS THE OLMER LETTER WITH REMARKABLE ARROGANCE WENT ON TO NOTE THAT JAPANESE FIRMS HAD ACHIEVED CONSIDERABLE SUCCESS SELLING CELLULAR EQUIPMENT IN THE US AND I WOULD HOPE THAT EQUITABLE STANDARDS FOR CELLULAR TELEPHONES COULD BE RAPIDLY ADOPTED IN JAPAN IN OTHER WORDS SCRAP YOUR SYSTEM USE OURS NEVER MIND THAT OUR OWN FEDERAL COMMUNICATIONS COMMISSION HAD TAKEN THE SENSIBLE COURSE AND ADOPTED A SINGLE STANDARD IN THIS COUNTRY AND THAT THE EUROPEANS HAD THEIR OWN SYSTEM INCOMPATIBLE BY THE WAY WITH MOTOROLA'S AND THAT JAPAN TOO HAD BEEN INSTALLING ITS OWN NIPPON TELEGRAPH & TELEPHONE SYSTEM SINCE 1979 IN THE REASONABLE EXPECTATION THAT ITS CITIZENS COULD CONVERSE WITH EACH OTHER NATIONWIDE IT IS NOT DIFFICULT TO IMAGINE HOW FRANCE OR GERMANY MIGHT HAVE REACTED IF MOTOROLA HAD TAKEN THE OLMER LINE OVER THERE OR SUPPOSE SONY HAD BLUSTERED ITS WAY INTO THE US AND DEMANDED THE RIGHT TO INSTALL A PARALLEL NONCOMPATIBLE SYSTEM HERE THE FCC WOULD HAVE WELCOMED IT WITH OPEN ARMS RIGHT NONETHELESS THAT'S WHAT EVENTUALLY HAPPENED IN JAPAN THE TOKYO AUTHORITIES UNDERSTANDABLY RESISTED THE MOTOROLALED ATTACK ON THEIR SOVEREIGNTY BUT THE PRESSURE WAS RELENTLESS IN APRIL 1986 PRIME MINISTER NAKASONE'S GOVERNMENT APPROVED A COMPROMISE TO ALLOW THE PARTIAL INTRODUCTION OF A SECOND CELLULAR STANDARD MOTOROLA'S AS IT HAPPENED JAPAN LIKE THE US AFTER THE BUSTUP OF AT&T WAS ALREADY IN THE PROCESS OF DEREGULATING ITS TELECOMMUNICATIONS INDUSTRY TO ALLOW COMPETITION AMONG COMMON CARRIERS ACCORDINGLY IN FEBRUARY 1987 REGULATORS DIVIDED THE COUNTRY INTO TWO REGIONS AND TWO PRIVATE JAPANESE FIRMS DDI DAINIDENDEN INC AND IDO NIPPON IDOU TSUSHIN CORP WERE GRANTED LICENSES TO COMPETE WITH NTT IN EACH REGION DDI CHOSE THE MOTOROLA STANDARD IN WESTERN JAPAN WITH ITS LARGE METROPOLITAN AREA AROUND OSAKA AND KYOTO IDO ENTERED THE EASTERN HALF WITH THE DENSELY POPULATED TOKYONAGOYA CORRIDOR BUT DECIDED TO GO WITH A SYSTEM COMPATIBLE WITH NTT BOTH MOTOROLA AND US NEGOTIATORS VOICED THEIR APPROVAL IN 1989 HOWEVER ALL BETS WERE OFF MOTOROLA NOW COMPLAINED THAT THEIR DDI CUSTOMERS' PHONES DIDN'T WORK WHEN THEY WERE IN THE TOKYO REGION THIS SHOULD NOT HAVE COME AS A SURPRISE SINCE MOTOROLA HAD UNDERSTOOD THE TERMS OF THE COMPROMISE BUT THE COMPANY COMPLAINED BITTERLY NEVERTHELESS THE US DETERMINED THAT JAPAN WAS IN VIOLATION OF THE 1986 AGREEMENT AND THREATENED TO IMPOSE 100 TARIFFS ON A VARIETY OF JAPANESE PRODUCTS UNLESS FREQUENCIES WERE ASSIGNED TO LET MOTOROLA PHONES ROAM IN THE TOKYO REGION ONCE AGAIN JAPAN RELENTED MAKING ADDITIONAL BANDWIDTH AVAILABLE LATER THE GOVERNMENT HELPED TO BROKER A DEAL UNDER WHICH IDO WOULD BEGIN INSTALLING MOTOROLA INFRASTRUCTURE AND EQUIPMENT AS WELL THIS REQUIRED A HUGE COMMITMENT BY IDO SHAREHOLDERS AS WELL AS MAMMOTH NEW LOANS TO PAY FOR THE SYSTEM WHICH THE JAPANESE GOVERNMENT ALSO HELPED BROKER AT FAVORABLE RATES IDO BEGAN OPERATING THE MOTOROLA SYSTEM IN NOVEMBER 1991 SOME MONTHS LATER IDO AND MOTOROLA NEGOTIATED AN INVESTMENT PLAN UNDER WHICH IDO PROMISED TO INSTALL 189 MOTOROLA BASE STATIONS BY JUNE OF THIS YEAR IN A LETTER DATED MARCH 18 1992 MOTOROLA CHAIRMAN GEORGE FISHER WROTE IDO'S CHIEF EXECUTIVE TAKEO TSUKADA APPROVING THE PLAN AND STATING THAT THERE IS NO PROBLEM AT THIS TIME WITH THE PROGRESS TOWARD IMPLEMENTATION INDEED IT NOW APPEARS THAT IDO WILL COMPLETE THAT INSTALLATION THREE MONTHS AHEAD OF SCHEDULE BUT HOLD THE PHONE ARE MR FISHER AND MR KANTOR HAPPY OF COURSE NOT LAST FALL THE US RAISED THE ANTE ONCE AGAIN DEMANDING THAT THE JAPANESE GOVERNMENT INTERVENE WITH IDO A PRIVATELY OWNED COMPANY TO GUARANTEE IT WILL INSTALL EQUIPMENT BY THE END OF THIS YEAR TO GIVE MOTOROLA AFTER THREE YEARS IN THE TOKYO REGION AS MUCH POPULATION COVERAGE AS NTT NOW ENJOYS AFTER 15 YEARS THIS IS APPARENTLY THE US DEFINITION OF COMPARABLE MARKET ACCESS STILL IDO TRIED TO COME UP WITH A WORKABLE PLAN LAST NOVEMBER THE COMPANY OFFERED TO INSTALL ENOUGH BASE STATIONS TO GIVE THE MOTOROLA SYSTEM ACCESS TO 93 OF THE TOKYO REGION'S POPULATION BY 1995 MORE THAN IDO'S COVERAGE WITH THE NTT SYSTEM THIS TOO WAS REJECTED INSTEAD THE US CRANKED UP ITS DEMANDS IDO MUST DOUBLE THE NUMBER OF EXISTING MOTOROLA CHANNELS IN THE TOKYO REGION NECESSITATING A CAPITAL EXPENDITURE THAT COULD BANKRUPT IDO FAILURE TO COMPLY BY THE END OF THE YEAR WOULD REQUIRE JAPANESE REGULATORS TO REVOKE IDO'S LICENSE IN ADDITION JAPAN MUST TRANSFER A FIXED AMOUNT OF NTT FREQUENCIES TO MOTOROLA'S FORMAT WHICH TOKYO SAYS WOULD INVOLVE THE RECALL OF ABOUT 300000 CELLULAR PHONES ALREADY IN USE BY SUBSCRIBERS THEN TWO DAYS AFTER THE CLINTONHOSOKAWA SUMMIT FELL APART THE MOTOROLA DEMANDS REACHED EVEN MORE LUDICROUS PROPORTIONS IDO MUST IMMEDIATELY BUY 225000 HANDSETS FROM MOTOROLA AS A WAY OF GUARANTEEING IT WOULD SEEK AT LEAST THAT MANY CUSTOMERS THIS LAST DEMAND WAS APPARENTLY PRECIPITATED BY MOTOROLA'S DESIRE TO UNLOAD ITS EXISTING INVENTORY OF ANALOG PHONES PRIOR TO JAPAN'S INAUGURATION OF DIGITAL SERVICE NEXT MONTH UNDER THE NEW REGULATIONS WHICH MOTOROLA HAS KNOWN WERE COMING FOR YEARS INDIVIDUAL RETAILERS WILL BE ALLOWED TO SELL BOTH ANALOG AND DIGITAL PHONES DIRECTLY TO CUSTOMERS IT IS NOT AT ALL CLEAR THAT MOTOROLA'S OLD ANALOG TECHNOLOGY WILL CONTINUE TO BE POPULAR INDEED MORGAN BENGTSSON PRESIDENT OF SWEDEN'S ERICSSON CORP A WORLD LEADER IN CELLULAR TECHNOLOGY ATTACKED THE US POSITION IN TOKYO MONDAY THE JAPANESE MARKET IS OPEN AS FAR AS THE CELLULAR MARKET IS CONCERNED HE SAID BECAUSE OF US PRESSURE US COMPANIES SHOULD NOT BE GIVEN UNFAIR ADVANTAGES OVER OTHER COMPANIES HERE DESPITE ITS COMPLAINTS MOTOROLA CURRENTLY HAS AN OVERALL CELLULAR PHONE MARKET SHARE IN JAPAN OF 23 ITS SHARE OF THE US MARKET IS ABOUT 38 AND TOSHIBA ITS NEAREST JAPANESE COMPETITOR IN THE US HAS LESS THAN A 9 SHARE IN THIS COUNTRY MOTOROLA'S COMBINED 1993 SALES OF CELLULAR EQUIPMENT AND SEMICONDUCTORS IN JAPAN WERE PROJECTED AT 13 BILLION OUT OF 17 BILLION IN WORLDWIDE SALES GIVEN THIS RECORD OF SUCCESS THE QUESTION ARISES WHY HAS THE US GOVERNMENT INVESTED SO MUCH TIME EFFORT AND TAXPAYER MONEY ON BEHALF OF MOTOROLA OVER THE YEARS WE OFTEN HEAR AMERICAN COMPLAINTS ABOUT THE COZY RELATIONSHIP THAT EXISTS BETWEEN JAPANESE ELECTED OFFICIALS BUSINESSMEN AND BUREAUCRATS WHAT ABOUT MOTOROLA AND US OFFICIALS THERE SEEMS TO BE QUITE A TRAIL LIONEL OLMER MENTIONED IN HIS CAPACITY AS UNDERSECRETARY OF COMMERCE WORKED FOR MOTOROLA FOR FOUR YEARS PRIOR TO JOINING THE REAGAN ADMINISTRATION IN 1981 AND HELPED NEGOTIATE THE COMPANY'S FIRST SUPPLIER AGREEMENT WITH JAPAN'S NTT YES MOTOROLA SELLS DIRECTLY TO NTT AS WELL AT COMMERCE OF COURSE HE HELPED NEGOTIATE THE 1986 AGREEMENT THAT LED TO MOTOROLA'S SYSTEM BEING APPROVED IN JAPAN IN HIS BOOK THE FAIR TRADE FRAUD JAMES BOVARD NOTES THAT MICHAEL GALVIN THE SON OF THE THENMOTOROLA CHAIRMAN DONATED OVER 100000 TO REPUBLICAN CANDIDATES IN 1988 AND WAS SUBSEQUENTLY CHAIRMAN OF THE ILLINOIS BUSH CAMPAIGN BUSH SUBSEQUENTLY APPOINTED GALVIN AS COMMERCE'S ASSISTANT SECRETARY FOR EXPORT ADMINISTRATION AND MICHAEL SKARZYNSKI A MOTOROLA LAWYER AS COMMERCE'S ASSISTANT SECRETARY FOR TRADE DEVELOPMENT THIS SPECIAL RELATIONSHIP CONTINUES TO EXIST IRA WOLF NOW THE NUMBER THREE OFFICIAL IN THE OFFICE OF THE US TRADE REPRESENTATIVE WAS THE PUBLIC AFFAIRS DIRECTOR FOR MOTOROLA JAPAN IMMEDIATELY BEFORE BEING APPOINTED BY THE CLINTON ADMINISTRATION THE FORMER HEAD OF THE TRADE OFFICE'S TELECOMMUNICATIONS TRADE POLICY DIVISION IS MARIAN BARELL NOW A LOBBYIST FOR MOTOROLA OF COURSE NONE OF THIS MEANS THAT THESE AREN'T NICE PEOPLE OR THAT THEY ACTED ILLEGALLY BUT IT DOES RAISE QUESTIONS ABOUT INFLUENCE AND THE REVOLVING DOOR IN AMERICAN GOVERNMENT AND INDUSTRY AND THIS COUPLED WITH THE HISTORY OF MOTOROLA IN JAPAN OUGHT TO GIVE US PAUSE AS MR KANTOR PRESSES HIS CASE AGAINST TOKYO MR LATHAM IS AN INTERNATIONAL MANAGEMENT CONSULTANT BASED IN PHILADELPHIA SEE RELATED LETTER LETTERS TO THE EDITOR MOTOROLA DENIED MARKET ACCESS WSJ MARCH 7 1994 9403030068 YY94 MM03 9403070033 940307 CANADA'S LIBERAL PARTY AIMS TO REDUCE BUDGET DEFICIT BY 45 WITHIN 3 YEARS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CANADA'S NEW LIBERAL PARTY GOVERNMENT WILL MEET ITS BUDGET DEFICIT REDUCTION TARGETS COME HELL OR HIGH WATER CANADIAN FINANCE MINISTER PAUL MARTIN SAID IN AN INTERVIEW THE GOVERNMENT AIMS INITIALLY TO REDUCE THE BUDGET DEFICIT BY 45 WITHIN THREE YEARS TO ABOUT 25 BILLION CANADIAN DOLLARS US184 BILLION ITS EVENTUAL GOAL IS TO ELIMINATE THE DEFICIT IN RECENT YEARS SUCCESSIVE FINANCE MINISTERS HAVE PLEDGED TO SLASH THE BUDGET DEFICIT BUT ALL HAVE FALLEN FAR SHORT OF THEIR TARGETS MR MARTIN HOWEVER INSISTED THAT WE ARE GOING TO HIT OUR NUMBERS THE CHRONIC DEFICITS WHICH HAVE BEEN SUBSTANTIALLY FUNDED BY US AND OTHER FOREIGN BUYERS OF CANADIAN GOVERNMENT TREASURY BILLS AND BONDS HAVE BECOME A HEAVY BURDEN FOR CANADIAN TAXPAYERS PUBLIC DEBT CHARGES ARE EXPECTED TO TAKE 33 CENTS OF EVERY CANADIAN TAX DOLLAR THIS YEAR THIS COMPARES WITH A PROJECTED 14 CENTS OF EVERY US TAX DOLLAR TO PAY FOR US PUBLIC DEBT CHARGES IN THE COMING FISCAL YEAR MR MARTIN WHO WAS NAMED FINANCE MINISTER IN NOVEMBER WAS IN NEW YORK TO DISCUSS HIS FISCAL STRATEGY WHICH WAS ANNOUNCED FEB 22 IN THE NEW GOVERNMENT'S FIRST BUDGET MILITARY BASE CLOSURES HE SAID THE BUDGET INCLUDES ENOUGH SPENDING CUTS AND REVENUERAISING MEASURES TO ENSURE THAT THE GOVERNMENT WILL BE ABLE TO MEET ITS INITIAL DEFICIT REDUCTION TARGET THE MOVES INCLUDE MILITARY BASE CLOSURES AND A TIGHTENING OF PAYOUT RULES FOR UNEMPLOYMENT INSURANCE ONE OF THE COUNTRY'S LARGEST SOCIAL SECURITY PROGRAMS MR MARTIN REJECTED SUGGESTIONS THAT CANADA COULD GROW OUT OF ITS DEFICIT PROBLEM BY RELYING ON INCREASED ECONOMIC ACTIVITY TO BOOST TAX REVENUES YOU FOOL YOURSELF IF YOU TRY TO SOLVE THE DEFICIT PROBLEM BY GROWTH ALONE HE SAID THE GOVERNMENT PREDICTS THAT CANADA'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED WILL RISE 3 THIS YEAR IF AS MANY ANALYSTS PREDICT GDP GROWS FASTER THAN 3 THIS YEAR THE CORRESPONDING SPURT IN TAX REVENUE IS ALL GOING TO BE GRAVY THE MINISTER SAID MR MARTIN FORMER CHAIRMAN OF CANADA STEAMSHIP LINES INC OF MONTREAL SAID THE GOVERNMENT IS PLANNING FURTHER REFORMS OF THE SOCIAL SECURITY SYSTEM TO GET MORE BANG FOR THE BUCK AND TO ELIMINATE WORK DISINCENTIVES BUT HE EMPHASIZED THAT CANADA ISN'T GOING TO ABANDON ITS SOCIAL SAFETY NET HE SAID THE GOVERNMENT'S COSTCUTTING WILL PROVIDE SCOPE FOR FURTHER CUTS IN CANADA'S HIGH PAYROLL TAXES WHICH HAVE DETERRED BUSINESSES FROM TAKING ON NEW WORKERS THE LIBERAL GOVERNMENT WON LAST OCTOBER'S ELECTION ON A PLEDGE TO CREATE BADLY NEEDED JOBS CANADA'S UNEMPLOYMENT RATE IS CURRENTLY 114 OF THE CIVILIAN WORK FORCE MR MARTIN SAID THE GOVERNMENT INTENDS OTHER MEASURES TO HELP BUSINESS INCLUDING A WHOLESALE SCRAPPING OF GOVERNMENT REGULATIONS AND A SHIFTING OF GOVERNMENT RESEARCH TOWARD AREAS THAT HAVE DIRECT COMMERCIAL POTENTIAL TO CREATE JOBS 9403070029 940307 DELTA AIR LINES TRAFFIC GAINS ATLANTA DELTA AIR LINES SAID FEBRUARY TRAFFIC INCREASED 45 TO 581 BILLION REVENUE PASSENGER MILES FROM 556 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DELTA'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 60 COMPARED WITH 563 A YEAR AGO THE AIRLINE SAID THAT FOR THE FIRST TWO MONTHS OF THE YEAR IT FLEW 1207 BILLION REVENUE PASSENGER MILES UP 48 FROM 1151 BILLION LOAD FACTOR ROSE TO 5901 FROM 5498 A YEAR AGO 9403070028 940307 SEC IS CONCERNED ABOUT HEDGE FUNDS AND ITS LIMITED ABILITY TO MONITOR THEM A WALL STREET JOURNAL NEWS ROUNDUP ORLANDO FLA THE SECURITIES AND EXCHANGE COMMISSION IS CONCERNED ABOUT HEDGE FUNDS THEIR IMPACT ON FINANCIAL MARKETS AND THE AGENCY'S LIMITED ABILITY TO MONITOR THEM SEC CHAIRMAN ARTHUR LEVITT SAID WE HAVE SOME PLANS YOU'LL BE HEARING ABOUT TO ADDRESS THESE CONCERNS MR LEVITT TOLD REPORTERS FRIDAY AFTER A SPEECH TO THE PUBLIC SECURITIES ASSOCIATION A BOND DEALERS' GROUP ASKED TO BE MORE SPECIFIC HE SAID I WANT TO KNOW WHAT THEY ARE DOING SEVERAL MAJOR HEDGE FUNDS HAVE TAKEN LARGE LOSSES IN RECENT WEEKS ADDING TO MARKET TURBULENCE FOLLOWING THE FEDERAL RESERVE'S MOVE TO RAISE INTEREST RATES A HEDGE FUND IS A PRIVATE INVESTMENT PARTNERSHIP MANY HEDGE FUNDS ARE PRONE TO MAKING BOLD BETS A JOINT SECTREASURYFEDERAL RESERVE STUDY ISSUED IN THE WAKE OF THE SALOMON BROTHERS TREASURYAUCTION BIDDING SCANDAL RAISED THE POSSIBILITY OF DETAILED FEDERAL REGULATION OF NOW LARGELY UNREGULATED HEDGE FUNDS BUT LITTLE MORE HAS BEEN HEARD ON THE SUBJECT UNTIL RECENTLY ON ANOTHER FRONT THE SEC CHAIRMAN SAID HIS AGENCY IS PARTICULARLY CONCERNED ABOUT DERIVATIVES AND THEIR SUITABILITY FOR INDIVIDUAL INVESTORS STATE AND LOCAL GOVERNMENTS AND PENSION FUNDS IN A SPEECH PREPARED FOR DELIVERY TO THE GATHERING OF BOND DEALERS HERE THE SEC CHIEF SAID WE TAKE THIS ISSUE VERY SERIOUSLY WE ARE CURRENTLY CONSIDERING SENDING A STRONG SIGNAL TO THIS END MR LEVITT TOLD THE ANNUAL CONVENTION OF THE PSA THAT THE SEC IS ON THE LOOKOUT FOR SALESPRACTICE ABUSES INVOLVING COLLATERALIZED MORTGAGE OBLIGATIONS HE NOTED THESE SOCALLED CMOS INCREASINGLY ARE BEING MARKETED TO SMALL INVESTORS I ANTICIPATE THAT WE WILL AMEND THE CUSTOMERCONFIRMATION RULE TO REQUIRE DISCLOSURE OF THE THREE BASIC ITEMS RELATING TO A CMO TRANSACTION THE ESTIMATED YIELD OF THE CMO THE WEIGHTED AVERAGE LIFE OF THE CMO AND THE PREPAYMENT ASSUMPTIONS UNDERLYING THE CALCULATED YIELD MR LEVITT SAID HE ALSO TOLD THE PSA THAT THE EXPLOSIVE GROWTH OF THE MUTUALFUND INDUSTRY AND INNOVATIONS IN DERIVATIVE PRODUCTS REQUIRE CLOSE EXAMINATION WE WILL SEEK TO WORK WITH THE INDUSTRY TO ELIMINATE ONCE AND FOR ALL RECIDIVIST BROKERS AND THEIR SUPERVISORS AND TO RAISE THE STANDARDS OF SALES PRACTICES THROUGHOUT THE INDUSTRY HE SAID IN ANOTHER AREA THE SEC BELIEVES THAT MUNICIPALBOND INVESTORS DESERVE THE INFORMATION THEY NEED TO EXERCISE SOUND JUDGMENT MR LEVITT SAID HE NOTED THAT THE COMMISSION WILL SOON REVIEW A REGULATORY PACKAGE DESIGNED TO IMPROVE DISCLOSURE IN THE MUNI MARKET IN ADDITION MR LEVITT PREDICTED THAT A RULE TO END PAYTOPLAY PRACTICES IN THE MUNICIPAL BOND MARKET WILL PASS CONSTITUTIONAL MUSTER IF TESTED IN COURT HE SAID THE ADVICE OF THE SEC'S LAWYERS AND HIS OWN FEELING IS THAT THE PROPOSED RULE WILL WITHSTAND CONSTITUTIONAL SCRUTINY BUT HE ACKNOWLEDGED THAT THE OUTCOME OF ANY COURT CHALLENGE CAN'T BE PREDICTED WITH CERTAINTY POSSIBLE COURT CHALLENGES ASIDE MR LEVITT SAID THE CONTINUING PUBLIC CONTROVERSY OVER WHETHER CAMPAIGN CONTRIBUTIONS BEING USED TO BUY MUNICIPAL BOND BUSINESS HAS ALTERED THE MARKET'S CULTURE AND HAS HAD A SALUTARY IMPACT THE MUNICIPAL SECURITIES RULEMAKING BOARD HAS PROPOSED A RULE NOW AWAITING SEC APPROVAL TO BAR BOND DEALERS FROM DOING BUSINESS WITH A JURISDICTION WITHIN TWO YEARS OF MAKING A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION THE SEC IS EXPECTED TO APPROVE THE RULE BEFORE LONG THE PERIOD DURING WHICH THE PROPOSAL IS OPEN TO PUBLIC COMMENT ENDS MARCH 11 THE BOARD PROPOSED THE RULE WITH AN APRIL 1 EFFECTIVE DATE SOME STATE AND LOCAL GOVERNMENT GROUPS AND OTHER CRITICS OF THE PROPOSAL HAVE SAID IT RAISES SERIOUS CONSTITUTIONAL QUESTIONS PARTICULARLY UNDER THE FIRST AMENDMENT AND OFFICIALS OF THE BOARD SAY THEY EXPECT THE RULE TO BE CHALLENGED IN COURT AFTER THE SEC APPROVES IT 9403070027 940307 COMPUTERS SOFTWARE RIVALS VYING TO DEFINE HOW PCS WORK BY G PASCAL ZACHARY AND JIM CARLTON STAFF REPORTERS OF THE WALL STREET JOURNAL THE RACE TO DEFINE THE LOOK AND FEEL OF THE PERSONAL COMPUTER IS HEATING UP FOR MONTHS MICROSOFT CORP HAS BEEN TEASING INDUSTRY WATCHERS WITH GLIMPSES OF ITS STILLUNFINISHED CHICAGO OPERATINGSYSTEM SOFTWARE WHICH FOR THE FIRST TIME UNIFIES THE COMPANY'S HUGELY SUCCESSFUL DOS AND WINDOWS PROGRAMS WITH CHICAGO MICROSOFT AIMS TO FINALLY MATCH AND IN SOME ASPECTS LEAPFROG THE EASE OF USE AND PSYCHOLOGICAL APPEAL OF APPLE COMPUTER INC'S MACINTOSH SOFTWARE SOME ANALYSTS ASSERT CHICAGO WILL BE A BLOCKBUSTER GENERATING 1 BILLION IN REVENUE IN THE FIRST 12 MONTHS OF ITS INTRODUCTION THOUGH LONG ACCUSED OF RESTING ON ITS MACINTOSH LAURELS APPLE INSISTS IT WILL MAKE ENOUGH IMPROVEMENTS IN ITS 10 YEAROLDOPERATING SYSTEM THE LATEST GENERATION OF WHICH IS CALLED SYSTEM 7 TO MAINTAIN A LEAD OVER MICROSOFT TODAY THE COMPANY IS SCHEDULED TO SKETCH OUT PLANS TO BOOST MACINTOSH SOFTWARE'S ABILITY TO DO THINGS AUTOMATICALLY SUCH AS SORTING ELECTRONIC MAIL WITHOUT SACRIFICING ITS FAMILIAR APPEARANCE DESIGNED TO BLUNT CHICAGO'S MOMENTUM THE PROMISED IMPROVEMENTS WON'T BE AVAILABLE IN SOME CASES UNTIL 1996 BUT THEIR DISCLOSURE NOW AT LEAST SHOWS WE ARE NOT STANDING STILL AN APPLE SPOKESMAN SAYS INDEED APPLE BASED IN CUPERTINO CALIF IS PREOCCUPIED WITH THE THREAT OF CHICAGO SOME SAY THE TENSION IS SO HIGH THAT APPLE RECENTLY DISMISSED AN EMPLOYEE WHO HAD OBTAINED AN UNAUTHORIZED TEST COPY OF CHICAGO MICROSOFT REDMOND WASH HAS DISTRIBUTED THE COPIES TO DOZENS OF OUTSIDERS IT PLANS A WIDER TEST RELEASE LATER THIS MONTH TO ENCOURAGE THE CREATION OF APPLICATIONS THAT TAKE ADVANTAGE OF CHICAGO BUT THE COMPANY NEVER INTENDED APPLE A DIRECT COMPETITOR TO OBTAIN A COPY SO FAR IN ADVANCE OF ITS FINAL RELEASE MICROSOFT ONLY LEARNED THAT THE APPLE EMPLOYEE HAD THE COPY AFTER THE WORKER BOASTED ABOUT SEEING CHICAGO DURING A RECENT TRADE SHOW SAY PEOPLE FAMILIAR WITH THE SITUATION MICROSOFT THEN DISPATCHED A LETTER REQUESTING THE COPY'S RETURN APPLE CONCEDES THAT AN EMPLOYEE OBTAINED AN UNAUTHORIZED PRERELEASE COPY AND BELIEVES IT HAS BEEN DESTROYED WHILE COMPANIES HAVE SUED EACH OTHER IN THE PAST OVER BREACHES OF INTELLECTUAL PROPERTY A SPOKESWOMAN FOR MICROSOFT SAID IT ISN'T CONSIDERING LEGAL ACTION THIS IS A MOOT POINT A NONISSUE SHE SAID WE CAN ONLY GO ON GOOD FAITH AS TO WHAT APPLE HAS TOLD US THE JOCKEYING FOR POSITION IN OPERATING SYSTEMS IS FIERCE BECAUSE SUCH SOFTWARE ESSENTIALLY DEFINES THE PERSONALITY OF A PERSONAL COMPUTER BY DICTATING THE WAY IN WHICH PROGRAMS ARE CONTROLLED FILES ARE STORED AND RETRIEVED AND THE HARDWARE PIECES OF A PC ARE HELD TOGETHER MICROSOFT'S DOS AND WINDOWS PROGRAMS WHILE DEFINING THE PERSONALITY OF MOST PCS FOR YEARS HAVE BEEN DERIDED AS AWKWARD AND UNIMAGINATIVE EVEN THE BEST FEATURES IN WINDOWS WHICH HAS OUTSOLD THE MACINTOSH SYSTEM 3 TO 1 WERE WIDELY CONSIDERED TO MIMIC THE MACINTOSH WHILE LAST YEAR MICROSOFT TRIUMPHED IN A LAWSUIT IN WHICH APPLE CHARGED THE WINDOWS PROGRAM INFRINGED ON APPLE'S MACINTOSH COPYRIGHT MANY INDUSTRY WATCHERS BELIEVE THE HEGEMONY OF DOS AND WINDOWS AND THE MINORITY STATUS OF THE MACINTOSH WAS AN UNFORTUNATE OUTCOME FOR PC BUYERS WHO STRUGGLE WITH HARDTOUSE SOFTWARE CHICAGO WHICH MICROSOFT IS EXPECTED TO BEGIN SELLING EARLY NEXT YEAR SHOULD ERASE WHAT WAS ONCE MACINTOSH'S DIMINISHED LEAD IN PC SYSTEM SOFTWARE SAYS DAVID COURSEY EDITOR OF PC LETTER SAN MATEO CALIF THE PROGRAM EVEN APPEARS TO OVERCOME SOME OF THE ANNOYING ASPECTS OF THE MACINTOSH BY MAKING IT EASIER TO KEEP TRACK OF FILES AND TO SKIP FROM ONE TASK TO ANOTHER CHICAGO DOES A LOT OF THINGS APPLE SHOULD HAVE DONE YEARS AGO BUT DIDN'T SAYS JEANLOUIS GASSEE PRESIDENT OF BE INC A SAN JOSE CALIF COMPUTER MAKER AND A FORMER APPLE PRODUCT CHIEF THE BIGGEST UNCERTAINTY ABOUT CHICAGO IS WHETHER DELAYS IN COMPLETION WHICH SEEM TO DOG EVERY MAJOR OPERATING SYSTEM RELEASE FROM MICROSOFT WILL PUSH CHICAGO'S COMPLETION WELL INTO 1995 IF THAT WERE TO OCCUR APPLE WOULD GAIN TIME TO CLEAN UP ITS ACT MR GASSEE SAYS APPLE SEEMS INTENT ON DOING SO AFTER THREE YEARS OF ESSENTIALLY STANDING PAT WITH ITS SYSTEM 7 OPERATING SYSTEM FOR MACINTOSH THE COMPANY PLANS TO ANNOUNCE TODAY THAT ITS OPERATING SYSTEM WILL EVENTUALLY INCORPORATE ELECTRONIC AGENTS OR SMALL PROGRAMS TO AUTOMATICALLY PERFORM SUCH TASKS AS SORTING ELECTRONIC MAIL WHICH NOW HAS TO BE DONE MANUALLY THESE FEATURES ARE TO FIRST APPEAR IN COPLAND A CODE NAME FOR THE NEXT GENERATION OF APPLE'S SYSTEM 7 THAT COMPANY OFFICIALS SAID WILL BE INTRODUCED NEXT YEAR ON THAT SYSTEM GUERRINO DE LUCA AN APPLE MARKETING VICE PRESIDENT SAID DUMB AGENTS WILL PERFORM TASKS SUCH AS MAILSORTING UPON THE USER'S SPECIFIC INSTRUCTION IN 1996 WHEN APPLE IS SCHEDULED TO INTRODUCE THE SUBSEQUENT NEW GENERATION CODENAMED GERSWHIN MR DE LUCA SAID INTELLIGENT AGENTS WILL BE ADDED THAT CAN MAKE DECISIONS ON THEIR OWN FOR A USER'S NEED THESE AGENTS CAN FOR EXAMPLE BOOK AIRLINE RESERVATIONS BASED ON A USER'S GENERAL PREFERENCE FOR PRICE AND TIME APPLE IS A PARTNER IN A CONSORTIUM CALLED GENERAL MAGIC INC THAT IS DEVELOPING A TECHNOLOGY CALLED TELESCRIPT FOR SENDING INTELLIGENT AGENTS THROUGH COMPUTER NETWORKS APPLE ALSO SAID IT PLANS TO BEGIN SHIPPING THIS YEAR A NEW PRODUCT CALLED OPENDOC THAT IS DESIGNED TO MAKE IT EASIER FOR DEVELOPERS OF SOFTWARE PROGRAMS TO MAKE SMALLER CUSTOMIZED PROGRAMS RATHER THAN ONE BIG PROGRAM MICROSOFT ALSO IS WORKING ON ENDOWING FUTURE PROGRAMS WITH SIMILAR CAPABILITIES 9403070026 940307 RECREATION WORLD'S PURCHASE LOS ANGELES CALIF RECREATION WORLD INC A DESIGNER OF RECREATION CENTERS IN THE US AND ABROAD ACQUIRED ICE CHALETS INC PEOPLE CLOSE TO THE TRANSACTION SAY THE PURCHASE PRICE WAS ABOUT 41 MILLION RECREATION WORLD SAID IT WILL NOW OPERATE 14 ICE SKATING RINKS NATIONWIDE EITHER UNDER LEASE OR MANAGEMENT CONTRACTS 9403070025 940307 CHUBB SLATES STOCK BUYBACK WARREN NJ CHUBB CORP SAID DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS FIVE MILLION OF THE INSURANCE COMPANY'S COMMON SHARES OR ABOUT 57 OF THE SHARES OUTSTANDING DIRECTORS ALSO INCREASED THE QUARTERLY DIVIDEND 7 TO 46 CENTS A SHARE FROM 43 CENTS PAYABLE APRIL 5 TO SHARES OF RECORD MARCH 18 9403070024 940307 DIVIDEND NEWS YORK INTERNATIONAL CORP YORK INTERNATIONAL CORP DOUBLED ITS QUARTERLY DIVIDEND TO FOUR CENTS A SHARE PAYABLE MARCH 25 TO SHARES OF RECORD MARCH 15 YORK SAID THE NEW RATE BOOSTS THE INDICATED ANNUAL DIVIDEND RATE TO 16 CENTS A SHARE FROM EIGHT CENTS THE INCREASE IS A SIGN OF CONTINUED CONFIDENCE ABOUT OUR PROSPECTS THE YORK PA COMPANY SAID YORK WHICH MAKES HEATING VENTILATING AND AIRCONDITIONING PRODUCTS HAS ANNUAL REVENUE OF ABOUT 2 BILLION 9403070023 940307 US STEPS UP SAFETY PROBE OF CHRYSLER MINIVANS' GATE WASHINGTON AP THE GOVERNMENT'S TRAFFICSAFETY AGENCY HAS UPGRADED AN INVESTIGATION INTO REPORTS THAT THE REAR HATCH OF CHRYSLER CORP MINIVANS POPPED OPEN DURING ACCIDENTS THAT KILLED EIGHT PEOPLE THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IN ITS MONTHLY DEFECTINVESTIGATION REPORT SAID IT HAD RECEIVED REPORTS OF 13 ACCIDENTS INVOLVING NINE INJURIES AND EIGHT FATALITIES IN THE 198494 VOYAGER CARAVAN AND TOWN AND COUNTRY THE REAR LIFTGATE LATCHING MECHANISM RELEASED ON IMPACT THE AGENCY SAID ABOUT FOUR MILLION OF THE MINIVANS ARE ON THE ROAD THE GOVERNMENT SAID CHRYSLER EARLIER REPLACED 4184 LATCHES FOR BINDING AND STICKING PROBLEMS WE DO NOT BELIEVE THERE IS ANY PROBLEM WITH THE LATCH MECHANISM SAID CHRYSLER SPOKESMAN TOM KOWALESKI OUR MINIVANS HAVE HAD AN EXEMPLARY SAFETY RECORD DURING A PRELIMINARY EVALUATION THE GOVERNMENT AND MANUFACTURER EXCHANGE PAPERWORK THE PROBE THEN COULD BE UPGRADED TO THE ENGINEERINGANALYSIS STAGE AS THE CHRYSLER MINIVAN CASE HAS BEEN DURING WHICH ENGINEERS STUDY THE PARTS TO SEE IF THEY ARE DEFECTIVE 9403070022 940307 WHO'S NEWS JOHNSON & JOHNSON JOHNSON & JOHNSON NEW BRUNSWICK NJ DAVID C ROCHE 44 YEARS OLD WAS NAMED VICE PRESIDENT OF SALES AND MARKETING AT THE JANSSEN PHARMACEUTICA USA UNIT OF THIS HEALTHCARE AND CONSUMERPRODUCTS COMPANY MR ROCHE FORMER PRESIDENT OF THE PRESCRIPTIONPRODUCTS DIVISION OF KANSAS CITY MOBASED MARION MERRELL DOW INC SUCCEEDS PAULO F COSTA WHO WAS NAMED PRESIDENT OF THE UNIT IN OCTOBER 9403070021 940307 SUNAMERICA STOCK REPURCHASE LOS ANGELES SUNAMERICA INC SAID ITS BOARD AUTHORIZED IT TO REPURCHASE FROM TIME TO TIME AS MANY AS FOUR MILLION COMMON SHARES IN THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS THE COMPANY SAID ANY REPURCHASES WILL DEPEND ON MARKET CONDITIONS SUNAMERICA SAID IT HAS ABOUT 42 MILLION SHARES OUTSTANDING 9403070020 940307 RETAILING SEARS REINSTATES SALES INCENTIVES IN SOME CENTERS BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL SEARS ROEBUCK & CO HAS PARTLY RESTORED A VARIATION OF THE SALESINCENTIVE PRACTICE THAT LED TO WIDESPREAD CHARGES OF BILKING CONSUMERS IN ITS US AUTO CENTERS LESS THAN TWO YEARS AGO AND THE GIANT RETAILER MAY SOON REVIVE THE PRACTICE EVEN MORE BROADLY THE CHARGES FIRST BROUGHT BY CALIFORNIA OFFICIALS IN JUNE 1992 ALLEGED THAT SEARS AUTOCENTER EMPLOYEES SYSTEMATICALLY RECOMMENDED UNNECESSARY REPAIRS LARGELY TO EARN MORE COMMISSION PAYMENTS SEARS ULTIMATELY PAID 15 MILLION IN REFUNDS AND OTHER COSTS TO SETTLE SUCH CHARGES IN 41 STATES AND 19 RELATED CLASSACTION SUITS TO END ITS PUBLICRELATIONS NIGHTMARE SEARS ALSO PLEDGED TO STOP USING THE COMMISSION SYSTEM AND SUBSTITUTE A FULL SALARY PLAN NOW IT TURNS OUT THAT COMMISSIONS NEVER DISAPPEARED ENTIRELY FROM THE SEARS AUTO CENTERS THEY CONTINUED FOR SOME EMPLOYEES AND REEMERGED FOR OTHERS IN A DIFFERENT GUISE ONE THAT SEARS SAYS SAFEGUARDS AGAINST ABUSE BUT AUTHORITIES IN SEVERAL STATES SAY THEY PLAN TO INVESTIGATE THE COMPANY'S PRACTICE AS PART OF A CORPORATE RESTRUCTURING IN EARLY 1993 SEARS ELIMINATED THE JOB CALLED SERVICE ADVISER THE ONE COVERED BY THE OLD COMMISSION PLAN THEN THE COMPANY CREATED A NEW POST CALLED SERVICE CONSULTANT THOUGH MANY PEOPLE LOST THEIR JOBS SOME OF THE OLD SERVICE ADVISERS GOT POSTS AS SERVICE CONSULTANTS ALSO GETTING THE NEW POSTS WERE SEARS EMPLOYEES WHO HADN'T WORKED IN THE SHOP BUT ON THE SALES FLOOR AND WHO HAD CONTINUED GETTING COMMISSIONS ALL ALONG ON PRODUCTS LIKE CAR BATTERIES AND JUMPER CABLES SEARS QUIETLY PUT THE NEW SERVICE CONSULTANTS ON A COMMISSION PLAN IT EXPECTS THEM TO EARN AT LEAST 40 OF THEIR TOTAL PAY IN COMMISSIONS ON THE SALE AND INSTALLATION OF TIRES BATTERIES SHOCK ABSORBERS AND STRUTS THE PLAN DOESN'T INCLUDE BRAKES AND FRONTEND WHEELALIGNMENT WORK THE SERVICES AND PRODUCTS AT THE CORE OF THE 1992 COMMISSION SCANDAL IN OCTOBER 1993 SEARS WENT A STEP FURTHER IN 25 OF ITS 799 STORES NATIONWIDE THE COMPANY BEGAN TESTING A NEW COMPENSATION PLAN THAT INCLUDES COMMISSIONS FOR THE BRAKE AND FRONTEND WORK SEARS ALSO IS TESTING AN ALTERNATE PLAN THAT ELIMINATES COMMISSIONS ALTOGETHER THE COMPANY SAYS IT WILL CHOOSE ONE OF THE TWO PLANS THIS SPRING TO ROLL OUT ACROSS THE COUNTRY JIM THORNTON THE SEARS OFFICIAL IN CHARGE OF ITS AUTO CENTERS DEFENDED THE USE OF COMMISSIONS AND CITED SAFEGUARDS HE SAID SHOULD PREVENT A RECURRENCE OF THE 1992 PROBLEMS WE DON'T BELIEVE ALL COMMISSION IS BAD SAID MR THORNTON VICE PRESIDENT AUTOMOTIVE MR THORNTON SAID THE NEW SERVICE CONSULTANTS AREN'T INVOLVED IN ACTUALLY EVALUATING REPAIR NEEDS UNLIKE THE OLD SERVICE ADVISERS WHO HELPED TO INSPECT CARS AND DIAGNOSE THE REPAIRS THAT LED TO THEIR COMMISSIONS REPAIRS ARE NOW DIAGNOSED SOLELY BY MECHANICS WHO DON'T EARN COMMISSIONS THEY THEN PASS THEIR RECOMMENDATIONS ALONG TO THE SERVICE CONSULTANTS WHO WRITE UP THE SALE THERE'S NO DIRECT SALE IN THE SHOP ANYMORE MR THORNTON SAID THAT'S A MAJOR DEPARTURE FROM WHERE WE WERE SO FAR THERE IS NO EVIDENCE OF ABUSES AT SEARS'S AUTO CENTERS SINCE THE COMPANY IMPLEMENTED ITS NEW COMMISSION PLANS STILL AUTHORITIES IN SEVERAL STATES THAT BROUGHT CHARGES AGAINST SEARS IN 1992 SAID THEY WERE DISTURBED BY THE COMPANY'S CURRENT BEHAVIOR AND PLANNED TO INVESTIGATE FURTHER WHAT THEY'RE DOING NOW SOUNDS VERY SIMILAR TO WHAT THEY DID THEN SAID DERRY L KNIGHT DEPUTY DIRECTOR FOR LEGAL AFFAIRS WITH CALIFORNIA'S DEPARTMENT OF CONSUMER AFFAIRS THE DEPARTMENT FIRST UNCOVERED A PATTERN OF UNNECESSARY REPAIRS AT THE AUTO CENTERS AFTER A YEARLONG UNDERCOVER INVESTIGATION I HOPE WE'RE NOT GOING BACK TO SQUARE ONE ON THIS HE ADDED HERSCHEL T ELKINS A SENIOR ASSISTANT ATTORNEY GENERAL WHO HELPED SUPERVISE CALIFORNIA'S SETTLEMENT WITH SEARS SAID THE SEPARATION BETWEEN THE NEW SERVICE CONSULTANTS AND THE MECHANICS THEORETICALLY MIGHT WORK BUT HE ASKED ARE TECHNICIANS GOING TO FEEL THEY NEED TO SATISFY THE PEOPLE WHO ARE MAKING THE COMMISSIONS CALIFORNIA'S SETTLEMENT WITH SEARS DIDN'T EXPLICITLY PROHIBIT THE PAYMENT OF COMMISSIONS MR KNIGHT SAID EVEN SO HE ADDED THE RETAILER'S RESUMED PAYMENT OF COMMISSIONS WOULD BE CLEARLY CONTRARY TO WHAT THEY PUBLICLY STATED AT THE TIME OF THE SETTLEMENT SEARS DID AGREE TO ELIMINATE COMMISSIONS FOR THE SERVICE ADVISERS IN ITS SETTLEMENT WITH NEW JERSEY OUR AGREEMENT DEFINES THE COMMISSION BAN QUITE NARROWLY SAID LAUREN CARLTON A NEW JERSEY DEPUTY ATTORNEY GENERAL SHE SAID SHE NOW PLANS TO INVESTIGATE WHETHER THE NEW COMMISSION PLAN AND JOB CHANGE IN THE AUTO CENTERS BREACH SEARS'S AGREEMENT WITH THE STATE WE'RE GOING TO WANT TO KNOW MORE SHE ADDED A SEARS SPOKESMAN CITING WORDING FROM A JUNE 1992 NEWS RELEASE SAID THE COMPANY EXPLICITLY PLEDGED TO ELIMINATE COMMISSIONS ONLY FOR ITS NOWDEFUNCT SERVICE ADVISER JOB THE RELEASE DIDN'T SAY WE WOULD ELIMINATE INCENTIVE COMPENSATION FOR EVERYONE FOREVER IN THE AUTO CENTER HE SAID ANOTHER SEARS SPOKESMAN NOTED THE KEY IS AT ONE TIME THE PEOPLE WHO WERE RECOMMENDING THE REPAIR WORK GOT THE COMMISSIONS WE ELIMINATED THAT ARRANGEMENT AND HAVE NO PLANS TO PUT IT BACK INTO PLACE THE FRAUD ALLEGATIONS DEALT A BIG BLOW TO SEARS'S AUTOCENTER BUSINESS WHICH DROPPED SHARPLY IN SOME AREAS AFTER THE SCANDAL AND HAS NEVER FULLY RECOVERED IN 1992 EDWARD A BRENNAN THE COMPANY'S CHAIRMAN SAID THE UNIT PRODUCED 9 OF SEAR'S US MERCHANDISE GROUP REVENUE WHICH THAT YEAR TOTALED 254 BILLION ONE SEARS SPOKESMAN WOULDN'T OFFER AN UPDATED BREAKOUT OF THE AUTOCENTERS' PERFORMANCE BUT SAID THE COMPANY RECENTLY TOLD ANALYSTS THAT THE UNIT'S RESULTS WERE DISAPPOINTING LAST YEAR AS PART OF ITS BROAD RESTRUCTURING SEARS ALSO REDUCED ITS AUTOCENTER BUSINESS ELIMINATING MAJOR REPAIRS AND TUNEUPS TO FOCUS ON A HANDFUL OF PRODUCTS AND SERVICES THE UNIT NOW EMPLOYS 23000 PEOPLE DOWN FROM 33000 TWO YEARS AGO MR THORNTON SAYS 9403070019 940307 FHP SETS PACT FOR ACQUISITION OF TAKECARE DEAL OF 11 BILLION IN CASH SECURITIES IS ATTEMPT TO CREATE MAJOR HMO BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL FHP INTERNATIONAL CORP SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE TAKECARE INC FOR ABOUT 11 BILLION IN CASH AND SECURITIES OR 80 A SHARE IN AN ATTEMPT TO CREATE ONE OF THE NATION'S LARGEST HEALTH MAINTENANCE ORGANIZATIONS THE COMPANIES SAID THEY WILL HAVE COMBINED REVENUE OF ABOUT 325 BILLION THIS YEAR WITH MORE THAN 16 MILLION MEMBERS IN CALIFORNIA SEVEN OTHER STATES AND GUAM THE ACQUISITION WHICH THE COMPANIES EXPECT TO COMPLETE BY THE END OF JUNE WILL FACILITATE FHP'S ENROLLMENT OF NEW MEDICARE MEMBERS IN CALIFORNIA AND COLORADO THE AGREEMENT UNDERSCORES THE TREND TOWARD CONSOLIDATION IN THE HEALTHCARE INDUSTRY AS COMPANIES SCRAMBLE TO RESPOND TO CHANGES IN THE MANAGEDCARE FIELD AND PREPARE FOR PROPOSALS TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM THE PRICE WAS SUBSTANTIALLY HIGHER THAN THE 829 MILLION IN CASH AND SECURITIES OR 62 A SHARE THAT FHP HAD AGREED TO PAY TO ACQUIRE TAKECARE IN JANUARY AFTER SOME DISGRUNTLED TAKECARE SHAREHOLDERS FILED A LAWSUIT TO BLOCK THAT DEAL TAKECARE PUT ITSELF ON THE AUCTION BLOCK FHP WAS DETERMINED NOT TO LET TAKECARE GET AWAY WE DECIDED THAT THE VALUE WAS THERE FOR US TO COMPETE IN THE AUCTION AND WE WENT TO LEVELS WE THOUGHT WERE APPROPRIATE FOR OUR SHAREHOLDERS SAID WESTCOTT W PRICE III PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FHP BASED IN FOUNTAIN VALLEY CALIF OF ALL THE COMBINATIONS IN THIS INDUSTRY THIS ONE HAS THE MOST WONDERFUL OPPORTUNITIES FOR GROWTH TAKECARE SHARES SOARED ON THE ANNOUNCEMENT JUMPING 12 TO CLOSE FRIDAY AT 7525 UP 7875 ON THE NASDAQ STOCK MARKET FHP SHARES ALSO TRADED ON NASDAQ FELL 175 OR 6 TO 2675 ANALYSTS SAID TAKECARE EXTRACTED A HIGHER PRICE THAN THEY EXPECTED FHP GAVE UP ALMOST A YEAR'S GROWTH IN EARNINGS TO GET THE DEAL DONE SAID ED KEANEY AT STIFEL NICOLAUS & CO IN ST LOUIS WHO THOUGHT TAKECARE WOULD COMMAND BETWEEN 72 AND 75 A SHARE HE SAID THE DEAL WOULD REDUCE FHP'S EARNINGS FOR THE FISCAL YEAR ENDING JUNE 30 1995 TO ABOUT 175 A SHARE ABOUT 10 CENTS TO 15 CENTS A SHARE LOWER THAN HE PREVIOUSLY HAD PROJECTED UNDER THE 80ASHARE AGREEMENT HOLDERS OF EACH TAKECARE SHARE WILL RECEIVE 28 IN CASH 40 OF A NEW ISSUE OF CONVERTIBLE PREFERRED STOCK AND 12 IN FHP COMMON STOCK THE PREFERRED SHARES WILL PAY AN ANNUAL DIVIDEND OF BETWEEN 47 AND 5 AND ARE CONVERTIBLE INTO FHP COMMON AT 31 A SHARE TAKECARE'S DIRECTORS MET ON WEDNESDAY AND SELECTED THE FHP OFFER BECAUSE IT WAS THEIR VIEW THAT IT OFFERED THE GREATEST VALUE FOR SHAREHOLDERS SAID A SPOKESMAN FOR THE CONCORD CALIF HMO THE DECISION WAS ENDORSED BY ALL EIGHT DIRECTORS INCLUDING THREE WHO HAD OPPOSED THE ORIGINAL FHP OFFER TWO OF THE EARLIER DISSENTERS REPRESENT THE HILLMAN FOUNDATION PITTSBURGH ONE OF TAKECARE'S LARGEST HOLDERS TAKECARE HOLDERS LED BY INVESTOR HENRY L HILLMAN BROUGHT THE SUIT TO BLOCK THE FIRST FHP AGREEMENT CHARGING THAT THE TAKECARE BOARD WASN'T MAXIMIZING SHAREHOLDER VALUE THE SUIT WILL PROBABLY BE DROPPED NOW FHP'S MR PRICE SAID FRIDAY TAKECARE'S BOARD ACTED AFTER UNITED HEALTHCARE CORP MINNETONKA MINN SAID LAST WEEK THAT IT WOULDN'T PURSUE A TAKECARE ACQUISITION ANALYSTS SPECULATED THAT OTHER BIDDERS INCLUDED FOUNDATION HEALTH CORP RANCHO CORDOVA CALIF AND PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF THOSE TWO COMPANIES DECLINED COMMENT FHP'S MR PRICE SAID THE DEAL WILL IMMEDIATELY ALLOW FHP TO EXPAND ITS MEDICARE PROGRAM UNDER RULES SET BY THE US HEALTH CARE FINANCING ADMINISTRATION WHICH OVERSEES MEDICARE HMOS CAN'T HAVE MORE MEDICARE MEMBERS THAN COMMERCIAL MEMBERS IN ANY GEOGRAPHIC AREA TAKECARE HAS A LOT OF COMMERCIAL MEMBERS AND WE HAVE ALMOST NONE IN NORTHERN CALIFORNIA AND COLORADO HE SAID TAKECARE WILL BE OPERATED AS A SEPARATE FHP SUBSIDIARY AND TAKECARE'S MANAGEMENT INCLUDING PRESIDENT R JUDD JESSUP WILL REMAIN IN PLACE MR PRICE SAID 9403070018 940307 TECHNOLOGY & HEALTH FOUR GROCERY CHAINS SUE 16 DRUG FIRMS MAILORDER CONCERN IN PRICING DEBATE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MAJOR GROCERY CHAINS WITH SIGNIFICANT RETAIL DRUG OPERATIONS FILED A SUIT IN CINCINNATI FEDERAL COURT CHARGING 16 LARGE DRUG MAKERS AND A MAILORDER PRESCRIPTION COMPANY WITH DISCRIMINATORY AND PERNICIOUS PRICING THE SUIT FILED BY KROGER CO ALBERTSON'S INC SAFEWAY INC AND VONS COS CLAIMS THE PHARMACEUTICAL FIRMS PARTICIPATE IN TWOTIER PRICING DISCRIMINATION FOR THEIR BRANDED PRODUCTS THE SUIT CLAIMS THE FIRMS' PRICING POLICIES FAVOR INSTITUTIONAL PHARMACIES HEALTHMAINTENANCE ORGANIZATIONS AND MAILORDER PRESCRIPTION COMPANIES WITH LOWER PRICES WHILE CHARGING SUPERMARKET CHAINS MORE THE SUIT SEEKS AN INJUNCTION AND SEEKS TREBLE DAMAGES IF A JURY FINDS FOR THE PLAINTIFFS THE PHARMACEUTICAL INDUSTRY CURRENTLY FACES MORE THAN 40 SIMILAR LAWSUITS A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A WASHINGTONBASED TRADE ORGANIZATION HAD NO COMMENT ON ANY OF THE LEGAL PROCEEDINGS OR PRICING ISSUES THE INCREASING NUMBER OF SUITS CLEARLY REFLECTS THE SERIOUS NATURE OF MANUFACTURERS TRYING TO SHIFT COSTS TO RETAIL CONSUMERS SAID PHILLIP SCHNEIDER SPOKESMAN FOR THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES OF WHICH VONS ALBERTSON'S AND SAFEWAY ARE MEMBERS MR SCHNEIDER SAID THE COST SHIFTING FORCES RETAIL PHARMACIES TO PAY MANY TIMES MORE THAN HOSPITALS AND HMOS FOR THE SAME PRODUCTS INDUSTRY ANALYSTS SAY THAT IN RECENT YEARS HMOS HAVE SUCCEEDED IN FORCING STEEP PRICE REDUCTIONS BY TELLING MANUFACTURERS THEY WOULD REMOVE CERTAIN DRUGS FROM PRESCRIPTION LISTS USED BY MEMBER DOCTORS MEANWHILE DRUG RETAILERS WITH A BROADER CONSUMER BASE SUCH AS KROGER MUST CARRY A WIDER ARRAY OF PHARMACEUTICALS THAT LIMITS THEIR ABILITY TO NEGOTIATE FOR LOWER PRICES BECAUSE THEY ARE UNLIKELY TO ELIMINATE DRUGS FROM THEIR SHELVES THAT CUSTOMERS MIGHT REQUEST PAUL BERNISH A SPOKESMAN FOR KROGER SAID ITS INSTORE PHARMACIES ARE PROFITABLE GROWTH OPERATIONS AND ARE CENTRAL TO KROGER'S COMBINATION STORE STRATEGY KROGER WITH MORE THAN 1200 STORES HAS MORE THAN 600 INSTORE PHARMACIES THE SUIT CONTENDS THE GROCERY CHAINS' PHARMACY BUSINESS HAS ERODED IN RECENT YEARS DUE TO PRICE DISCRIMINATION THE SUIT CLAIMS VIOLATION OF THE ROBINSONPATMAN ACT A DEPRESSIONERA LAW THAT MAKES CERTAIN DISCRIMINATORY PRICING ILLEGAL UNDER THE ROBINSONPATMAN ACT UNLIKE THE SHERMAN ANTITRUST LAW PROOF OF CONSPIRACY ISN'T REQUIRED INSTEAD PLAINTIFFS NEED TO SHOW ONLY THAT A COMPANY ACTED UNFAIRLY IN PRICING SIMILAR PRODUCTS FOR DIFFERENT CUSTOMERS AMONG THOSE NAMED IN THE SUIT A SPOKESMAN FOR CIBAGEIGY CORP SAID THE SUIT WAS WITHOUT MERIT SPOKESMEN FOR BRISTOLMYERS SQUIBB CO UPJOHN CO AND SMITHKLINE BEECHAM PHARMACEUTICALS CO A UNIT OF SMITHKLINE BEECHAM PLC HAD NO COMMENT REPRESENTATIVES OF AMERICAN HOME PRODUCTS CORP MERCK & CO PFIZER INC DUPONTMERCK PHARMACEUTICALS CO AND GLAXO HOLDINGS PLC'S GLAXO INC DECLINED COMMENT BECAUSE THEY HADN'T SEEN THE SUIT DUPONTMERCK PHARMACEUTICALS IS A JOINT VENTURE OF MERCK AND DUPONT CO ABBOTT LABORATORIES SCHERINGPLOUGH CORP RHONEPOULENC RORER WELLCOME PLC'S BURROUGHS WELLCOME CO MONSANTO CO'S GD SEARLE & CO AND ELI LILLY & CO DIDN'T RETURN PHONE CALLS SEEKING COMMENT MEDCO CONTAINMENT SERVICES INC A MAILORDER PRESCRIPTION COMPANY AND MERCK UNIT DECLINED TO RETURN CALLS FOR COMMENT ZENECA INC A UNIT OF ICI PLC COULDN'T BE REACHED FOR COMMENT 9403070017 940307 ECONOMY PROVISIONS IN TELECOMMUNICATIONS BILL COULD VIOLATE US TRADE AGREEMENTS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PROVISIONS IN A BILL TO REVAMP THE TELECOMMUNICATIONS INDUSTRY COULD VIOLATE US TRADE AGREEMENTS BUT ANY EFFORT TO REMOVE THEM WOULD JEOPARDIZE CONGRESSIONAL APPROVAL OF THE LEGISLATION IN A RECENT LETTER US TRADE REPRESENTATIVE MICKEY KANTOR WARNED THAT US TRADING PARTNERS WOULD VIEW THE BILL AS A VIOLATION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE NORTH AMERICAN FREE TRADE AGREEMENT IN ADDITION HE SAID THE MEASURE WOULD SERIOUSLY JEOPARDIZE CURRENT TELECOMMUNICATIONS TALKS WITH THE EUROPEAN UNION THE BILL COWRITTEN BY ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL OF MICHIGAN AND JUDICIARY CHAIRMAN JACK BROOKS OF TEXAS IS DESIGNED TO LET THE REGIONAL BELL COMPANIES OFFER LONGDISTANCE SERVICE AND MAKE TELECOMMUNICATIONS EQUIPMENT THE PROVISIONS CITED BY MR KANTOR WOULD REQUIRE THE SEVEN HUGE TELEPHONE COMPANIES TO MAKE EQUIPMENT IN THE US AND IT WOULD CAP THE VALUE OF FOREIGN PARTS IN THEIR PRODUCTS AT 40 OF THE FINAL PRICE A SWEEPING TELECOMMUNICATIONS BILL INTRODUCED IN THE SENATE BY COMMERCE CHAIRMAN ERNEST F HOLLINGS OF SOUTH CAROLINA AND SEN JACK DANFORTH R MO CONTAINS SIMILAR LANGUAGE THE CLINTON ADMINISTRATION FIRST RAISED PROBLEMS WITH THE DOMESTICCONTENT AND MANUFACTURING PROVISIONS IN A HEARING THIS YEAR THE PROVISIONS HAVE BEEN CHAMPIONED BY THE POWERFUL PHONE COMPANY UNIONS AND THEY ESSENTIALLY SECURE THE UNIONS' SUPPORT FOR THE LEGISLATION REFERRING TO MR KANTOR'S LETTER A SPOKESMAN FOR THE COMMUNICATIONS WORKERS OF AMERICA THE BIGGEST PHONE UNION SAID THE CWA IS DEEPLY DISAPPOINTED WITH THIS WRONGHEADED STANCE WE DISAGREE AND HOPE CONGRESS WILL AS WELL DESPITE MR KANTOR'S APPEALS THE PROVISIONS ARE LIKELY TO REMAIN IN BOTH BILLS MR DINGELL APPEARS UNMOVED BY MR KANTOR'S PLEADINGS A SENIOR HOUSE AIDE SAID A SENIOR SENATE AIDE SAID THE PROVISIONS WILL BE INCLUDED IN LEGISLATION SENT TO THE PRESIDENT MR KANTOR WROTE THE LETTER TO MR DINGELL AND REP EDWARD MARKEY D MASS CHAIRMAN OF THE TELECOMMUNICATIONS SUBCOMMITTEE IN RESPONSE TO AN INQUIRY BY THE TWO LAWMAKERS THE STAKES HE WROTE ARE ENORMOUS THE TRADE OFFICE ESTIMATED THE EUROPEAN PUBLIC TELECOMMUNICATIONS MARKET TOTALS ABOUT 20 BILLION ANNUALLY WHILE THE JAPANESE MARKET IS 10 BILLION OUR NEGOTIATIONS TO OPEN THESE MARKETS AS WELL AS OTHERS ARE UNDERCUT BY ANY ACTION WHICH CLOSES THE US MARKET TO FOREIGN PRODUCTS AND WHICH IMPOSES RESTRICTIONS ON OUR INVESTORS MR KANTOR SAID 9403070016 940307 WHO'S NEWS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK LESLEY DANIELS WEBSTER WAS NAMED MANAGING DIRECTOR AND HEAD OF THE MARKETRISK MANAGEMENT GROUP AT THE CHEMICAL BANK UNIT OF THE BANKING CONCERN MS WEBSTER SUCCEEDS MICHAEL ZARRILLI 44 YEARS OLD WHO HELD THAT POSITION ON AN INTERIM BASIS MR ZARRILLI CONTINUES AS MANAGING DIRECTOR FOR THE UNIT'S ASIA EUROPE AND CAPITAL MARKETS GROUP MS WEBSTER 41 WAS MANAGING DIRECTOR AND HEAD OF THE PROPRIETARY AND ARBITRAGE TRADING GROUP AT UBS SECURITIES INC 9403070015 940307 OLYMPIA & YORK UNIT AGREES TO RELINQUISH BUILDING TO CREDITORS NEW YORK OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY AGREED IN PRINCIPLE TO HAND OVER ONE OF ITS PRIME NEW YORK OFFICE TOWERS TO THE BUILDING'S CREDITORS THE CREDITORS WHO HOLD 200 MILLION IN BONDS SECURED BY THE PROPERTY AT 59 MAIDEN LANE IN LOWER MANHATTAN HAD PREVIOUSLY CALLED THEIR LOAN AFTER THE SUBSIDIARY OLYMPIA & YORK COS USA BREACHED CERTAIN COVENANTS OF THE LOAN AGREEMENT THE PARTIES RESOLVED THE DISPUTE THROUGH NEGOTIATION THE O&Y UNIT CONTINUED TO PAY INTEREST ON THE 10375 BONDS WHICH WERE DUE TO MATURE IN 1995 FOR THE O&Y UNIT THE AGREEMENT QUELLS A CONTENTIOUS GROUP OF CREDITORS AS THE COMPANY NEGOTIATES TO RESTRUCTURE A TOTAL OF 5 BILLION OF DEBT IT ALSO REMOVES THE COMPANY FROM FUTURE RESPONSIBILITY TO FUND ASBESTOS REMOVAL AND TENANT IMPROVEMENTS WHEN THE 43STORY BUILDING'S MAIN LEASES EXPIRE IN 1999 OLYMPIA & YORK USA IS NOT SHY ABOUT DROPPING BUILDINGS THEY'RE COMMITTED TO GET DOWN TO CORE HOLDINGS AND ASSETS THAT WILL PROVIDE LONGTERM VALUES A COMPANY SPOKESMAN SAID THE COMPANY DOESN'T EXPECT TO CONTINUE TO MANAGE 59 MAIDEN LANE FOR THE NEW OWNERS THE SPOKESMAN SAID DAVID BRAIL AT DICKSTEIN & CO A NEW YORK DISTRESSEDBOND CONCERN THAT HELPED NEGOTIATE THE AGREEMENT SAID 59 MAIDEN LANE HAD 27 MILLION OF INCOME LAST YEAR BEFORE INTEREST PAYMENTS THE BUILDING IS VERY PROFITABLE HE SAID MAJOR TENANTS INCLUDE HOME INSURANCE CORP AND THE FEDERAL RESERVE BANK OF NEW YORK UNDER TERMS OF THE AGREEMENT THE CREDITORS WILL PAY THE O&Y UNIT 35 MILLION PLUS CERTAIN OF ITS EXPENSES OWNERSHIP OF THE BUILDING WILL BE REORGANIZED THROUGH A CHAPTER 11 BANKRUPTCY FILING INTO A REALESTATE INVESTMENT TRUST SHARES OF WHICH WILL BE HELD BY THE CURRENT BONDHOLDERS OLYMPIA & YORK DEVELOPMENTS LTD IS BASED IN TORONTO IT REORGANIZED LAST YEAR UNDER CANADIAN BANKRUPTCY LAW AND IS CURRENTLY CONTROLLED BY ITS CREDITORS MAINLY CANADIAN BANKS 9403070014 940307 MANAGER'S JOURNAL THE POWER OF NEGATIVE THINKING BY MORTIMER FEINBERG ASSESSING THE NATION'S ECONOMY RECENTLY WALLACE RASMUSSEN FORMER CEO OF BEATRICE FOODS REMARKED THAT HE FEARS THAT AS THE ECONOMY MOVES UPWARD PEOPLE WILL FALL BACK INTO THEIR OLD WAYS AND CREATE THE SAME OLD PROBLEMS ONCE PEOPLE FEEL COMFORTABLE MR RASMUSSEN BELIEVES THEY BECOME AFFLUENT LAZY AND FAT AGAIN PROSPERITY MAY BE AROUND THE CORNER BUT LEARN FROM THE PAST MUCH THE SAME ADVICE COULD BE GIVEN TO INDIVIDUAL COMPANIES AT EASTMAN KODAK FOR EXAMPLE MANAGEMENT GREW TOO COMFORTABLE ABOUT ITS SUCCESS CONSEQUENTLY IT MISSED THE WARNING SIGNS THAT ITS CORE BUSINESS WAS CHANGING IN FUNDAMENTAL WAYS WITH NEW TECHNOLOGIES AND NEW COMPETITORS FLOODING THE MARKET SO HOW DOES A COMPANY PREVENT ITSELF FROM GETTING TOO COMFORTABLE DOESN'T A CERTAIN ARROGANCE INEVITABLY COME WITH BEING PART OF A WINNING EFFORT OF SEEING ENTREPRENEURIAL DREAMS REALIZED OR OF REAPING LARGE FINANCIAL REWARDS THE CHALLENGE FOR A PROSPEROUS COMPANY IS TO FIND WAYS TO SIMULATE POVERTY WHEN IN TRUTH THE ORGANIZATION IS STILL AFFLUENT CLOSELY HELD COMPANIES ARE PARTICULARLY SUSCEPTIBLE TO THIS COMPLACENCY FOR THE FIRM'S FOUNDING PARTNERS MEMORIES OF THE POVERTY OF THE EARLY DAYS CAN STILL BE VERY REAL THEY STILL TURN OFF THE LIGHTS MORE RECENTLY NAMED PARTNERS BY CONTRAST KNOW ONLY THE DAYS OF AFFLUENCE THE RESULTING GAP CAN BE ENORMOUS WHAT STEPS CAN SENIOR MANAGEMENT TAKE TO FOSTER THE OLD FIRE IN THE BELLY THESE SUGGESTIONS SHOULD PROVIDE A START BANISH TITLES DON'T EXPEND ALL YOUR RESOURCES STAFFING UP WITH POSITIONS THAT CARRY IMPRESSIVE TITLES KEEP THE ORGANIZATION LEAN ENOUGH SO THAT THE EARLY ENTREPRENEURIAL SPIRIT CAN STILL REIGN BE PARTICULARLY CAUTIOUS WHEN IT COMES TO CREATING LAYERS OF MANAGEMENT PSYCHOLOGICALLY PEOPLE MAY FEEL BETTER WITH TITLES BUT TITLES CREATE AN EXPECTATION THAT THERE WILL ALWAYS BE A VP SLOT DAMPEN EXPECTATIONS BY BANISHING TITLES THOUGH NOT RESPONSIBILITIES AS PETER DRUCKER HAS SAID RESPONSIBILITY SHOULD ALWAYS EXCEED AUTHORITY PRACTICE PESSIMISM WHAT WOULD YOU DO IF YOUR BUSINESS GOT CUT BACK 30 TO 50 ASK HOW WOULD WE SURVIVE IN THE 1950S THE LATE NORMAN VINCENT PEALE'S POWER OF POSITIVE THINKING TOOK HOLD OF THE POPULAR IMAGINATION CONSIDER THE REVERSE THE POWER OF NEGATIVE THINKING RATHER THAN BURYING YOUR FAILURES UNDER THE CARPET TALK ABOUT THEM NOT BECAUSE YOU WANT TO WALLOW IN THE BAD NEWS BUT BECAUSE YOU WANT TO ACKNOWLEDGE THAT THINGS WON'T REMAIN ROSY THE LATE SAM WALTON ONCE WAS CALLED WITH CONGRATULATIONS ON WALMART'S TREMENDOUS YEAR PEOPLE ARE WALKING AROUND WITH THEIR HEADS IN THE CLOUDS HE ACKNOWLEDGED BUT IN THE NEXT COUPLE OF HOURS I'LL KNOCK THEM OFF AT THE KNEES GO BACK TO BASICS INGENUITY OFTEN COMES FROM THE DESPERATE DESIRE TO BREAK OUT OF POVERTY IT WAS ONCE PART OF THE CULTURE AND CAN BE AGAIN GO DIRECTLY TO YOUR CUSTOMERS AND ASK WHAT IT WOULD TAKE FOR AN UPSTART COMPETITOR TO LURE YOUR BUSINESS AWAY THE MORE BRUTAL AND HONEST THEIR ANSWERS THE BETTER REWARD THEM FOR THEIR HONESTY WITH ONETIME REBATES AND DISCOUNTS ASK YOUR CUSTOMERS WHAT YOU HAVE TO DO TO OBTAIN MORE OF THEIR BUSINESS SAYS JOHN MCGLYNN PRESIDENT OF THE TECHNICAL IMAGING SYSTEMS DIVISION OF MILES INC IN RIDGEFIELD PARK NJ IF THE RESPONSE ZEROES IN ON PRICE HEAR THAT IF IT'S ORDER TURNAROUND TIME OR OTHER SERVICE ISSUES HEAR THAT PROVIDE PUNISHMENTS AS WELL AS PERKS COMPANIES AREN'T PUNISHING ENOUGH AT THE TOP OF THE ORGANIZATION THEY NEED TO BUILD IN DISINCENTIVES FOR SENIOR MANAGEMENT WHEN GOALS ARE NOT REACHED WHERE RIGHT NOW WE'RE STILL PROVIDING ONLY REWARDS WE ALLOW SENIOR MANAGERS TO WALLOW IN THEIR ACHIEVEMENTS TOO LONG SAYS ROBERT VOSS EXECUTIVE VICE PRESIDENT OF MERCHANDISING AT DOLLAR GENERAL A DISCOUNT RETAILER IN NASHVILLE THIS WILL MEAN DEFLATING SOME MUCHCHERISHED PARACHUTES BUT IT IS ONE WAY TO COMMUNICATE TO KEY MANAGERS THAT THEY'RE GOING TO BE HELD ACCOUNTABLE NOBODY LIKES TO TALK ABOUT GIVEBACKS BUT IF UNIONS CAN BE ASKED TO TAKE A STEP BACKWARD IN SALARY AND BENEFITS SO CAN MANAGEMENT CUT MANAGEMENT SALARIES 5 OR 10 FOR STARTERS IN THIS CONTEXT IT'S A MOTIVATOR ASK PEOPLE TO JUSTIFY THEIR RAISES TREAT YOUR PEOPLE AS CONSULTANTS WHO HAVE TO EARN THEIR KEEP BRING THIS IDEA INTO THEIR PERFORMANCE REVIEWS ADVISES DENNIS BOTTORFF PRESIDENT AND CEO OF FIRST AMERICAN CORP A BANKING FIRM IN NASHVILLE IN WHAT WAYS HAVE THEY BUILT THE ORGANIZATION IN THE PAST YEAR TO WARRANT AN INCREASE DITTO STOCK OPTIONS DITTO COMPANY CARS PERKS ARE NOT GIFTS THEY'RE REWARDS REMEMBER IN THE MAYAN CULTURE IT WAS THE CAPTAIN WHO GOT DECAPITATED WHEN THE ARMY SUFFERED A DEFEAT NOT THE FOOT SOLDIERS WHAT WE NEED TO IMPLEMENT IS A SYSTEM OF CREATIVE TAKEBACKS INSTITUTE REAPPLICATIONS IN THE SAME WAY THAT SOME MARRIED COUPLES REAFFIRM THEIR WEDDING VOWS PERIODICALLY COMPANIES CAN REQUIRE MANAGERS TO REAPPLY FOR THEIR OWN JOBS TYPICALLY AN EFFORT LIKE THIS IS PART OF A LARGER DOWNSIZING PROGRAM AT THE COMPANY BUT IT NEEDN'T BE LINKED TO WORK FORCE REDUCTIONS AT LEAST NOT DIRECTLY INDEED COMPANIES CAN ASK MANAGERS TO JUSTIFY IN WRITING THE EXISTENCE OF THEIR ENTIRE DEPARTMENTS INSTRUCT PEOPLE TO TAKE SOME TIME TO THINK THE EXERCISE THROUGH SERIOUSLY IT'S ONE MORE WAY TO GET PEOPLE TO CONCENTRATE ON THEIR CONTRIBUTIONS TO THE ORGANIZATION AND WILL HELP RESTORE SOME OF THE ORIGINAL SPIRIT THAT'S BEEN LOST OVER THE YEARS THIS IS HARDLY INTENDED TO BREAK THE BOND BETWEEN THE COMPANY AND ITS EMPLOYEES NOR IS IT MEANT TO ADVOCATE SOME SORT OF DICTATORIAL MANAGING BY FEAR IT IS A REALITY CHECK MR FEINBERG IS CHAIRMAN OF A NEW YORKBASED CONSULTING FIRM 9403070013 940307 GIBSON GREETINGS INCURS 3 MILLION LOSS FROM UNAUTHORIZED INTERESTRATE SWAPS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL GIBSON GREETINGS INC SAID IT INCURRED A 3 MILLION LOSS AS A RESULT OF UNAUTHORIZED INTERESTRATE SWAPS AND HAS HIRED OUTSIDE COUNSEL TO INVESTIGATE THE CINCINNATIBASED GREETINGCARD AND WRAPPINGPAPER COMPANY SAID THE TRANSACTIONS INVOLVED AGGRESSIVE FORMS OF DERIVATIVES RESULTING IN INCREASED LEVELS OF EXPOSURE DERIVATIVES ARE INSTRUMENTS WHOSE VALUES ARE DERIVED FROM THE PRICES OF UNDERLYING ASSETS IN THE CASE OF INTERESTRATE SWAPS A DERIVATIVE IS DESIGNED TO ALLOW ITS HOLDER TO HEDGE AGAINST INTERESTRATE FLUCTUATIONS GIBSON SAID IT HAS CONDUCTED AN INTERNAL INVESTIGATION AND ADJUSTED ITS PORTFOLIO OF INTERESTRATE SWAPS HOWEVER AT THE REQUEST OF ITS OUTSIDE DIRECTORS IT HAS HIRED A CINCINNATI LAW FIRM TO CONDUCT A THOROUGH INDEPENDENT INVESTIGATION OF THE UNAUTHORIZED INTERESTRATE SWAPS THE 3 MILLION LOSS THE RESULT OF SHIFTING INTO MORE CONSERVATIVE SWAPS WILL BE OFFSET BY A 2 MILLION DEFERRED GAIN FROM EARLIER INTERESTRATE SWAPS SAID GIBSON'S CHIEF FINANCIAL OFFICER WILLIAM L FLAHERTY MR FLAHERTY WHO WAS NAMED CHIEF FINANCIAL OFFICER IN MIDNOVEMBER SAID THE TRANSACTIONS IN QUESTION WERE UNDERTAKEN BY COMPANY EMPLOYEES DURING THE PAST SIX MONTHS BOTH BEFORE AND AFTER HE JOINED THE COMPANY THE SWAPS WERE NOT AUTHORIZED BY ME AS THE NEW VICE PRESIDENT OF FINANCE AND CFO MR FLAHERTY SAID THERE WERE THREE SWAPS WHICH WERE CONTINUALLY ROLLED OVER INTO MORE AGGRESSIVE FORMS OF DERIVATIVES AND ULTIMATELY THEY WERE ROLLED INTO TWO SWAPS THESE WERE THE TWO WHICH WE HAVE NOW CHANGED MR FLAHERTY SAID GIBSON WILL PAY 3 MILLION TO A BANK TO UNWIND THE AGGRESSIVE SWAPS INTO LESS RISKY ONES WHICH MATURE IN JUNE AND AUGUST 1995 AND HAVE A CURRENT MARKET EXPOSURE OF ABOUT 145 MILLION THE OLD SWAPS HAD NO CAP ON EXPOSURE THE NEW ONES CAP EXPOSURE AT 245 MILLION GIBSON HAS BEEN PARTICIPATING IN THE DERIVATIVES MARKET FOR ABOUT 1 1/2 YEARS IN AN EFFORT TO HEDGE THE INTEREST RATE IT PAYS AS RATES WERE FALLING THE TRANSACTIONS INVOLVED SWAPPING FIXED FOR FLOATING RATES MR FLAHERTY SAID DECLINING TO DISCUSS THE SPECIFIC KINDS OF SWAPS THAT WERE USED THE EXPERIENCE INITIALLY WAS POSITIVE HE SAID BUT WHEN SHORTTERM RATES BOTTOMED OUT IN LATE 1993 THE COMPANY MOVED INTO MORE AGGRESSIVE SWAPS IT FOUND ITSELF WITH INCREASED NEGATIVE EXPOSURE WHEN RATES ROSE EARLY THIS YEAR HE SAID WE HAVE LITTLE FURTHER APPETITE FOR ADDITIONAL DERIVATIVES BECAUSE OF THE RISK PROFILE WE'D LIKE TO MANAGE OUR WAY OUT OF THESE MR FLAHERTY SAID TO THE EXTENT WE DO ANY FURTHER HEDGING IT WOULD BE USING STRAIGHTFOWARD CONTRACTS HE ADDED THAT THE PROBLEM IS A ONETIME SITUATION WHICH IS NOT REFLECTIVE OF THE HEALTH OF THE COMPANY'S UNDERLYING OPERATIONS IN 1993 GIBSON HAD NET INCOME OF 259 MILLION OR 161 A SHARE ON REVENUE OF 547 MILLION 9403070012 940307 FINANCING BUSINESS CYPRESS SEMICONDUCTOR CORP CYPRESS SEMICONDUCTOR CORP SAID IT INTENDS TO RAISE AS MUCH AS 100 MILLION IN A PRIVATE PLACEMENT OF CONVERTIBLE SUBORDINATED DEBENTURES THE SAN JOSE CALIF CHIP MAKER SAID PROCEEDS WOULD BE USED TO EXPAND PRODUCTION CAPACITY AT ITS BLOOMINGTON MINN PLANT NO TERMS OF THE OFFERING WERE DISCLOSED 9403070011 940307 MARKETING BRIEF NOTED MEDIA MOVE STAUFFER COMMUNICATIONS INC TOPEKA KAN SAID IT RETAINED GOLDMAN SACHS & CO TO EXPLORE STRATEGIES INCLUDING POSSIBLY SELLING THE CLOSELY HELD MEDIA COMPANY WHICH OWNS 21 DAILY NEWSPAPERS IN 11 MIDWEST STATES SEVEN TELEVISION STATIONS FOUR RADIO STATIONS AND SEVERAL OTHER PROPERTIES 9403070010 940307 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO GEORGE C WEIGAND WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF PLASTIC AND RUBBER PRODUCTS MR WEIGAND 42 WHO WAS VICE PRESIDENT AND CORPORATE CONTROLLER SUCCEEDS JOSEPH G MEEHAN 62 WHO RETIRED EFFECTIVE TUESDAY JOHN L THELER 46 FORMERLY VICE PRESIDENT OF FINANCE AND CONTROLLER OF THE HOME PRODUCTS DIVISION SUCCEEDS MR WEIGAND 9403070009 940307 BUSINESS BRIEF COMINCO LTD OUTOFCOMMISSION SMELTER REPLACED FOR 1072 MILLION COMINCO LTD SAID IT WILL BUILD A LEAD SMELTER AT ITS TRAIL BRITISH COLUMBIA OPERATIONS FOR 145 MILLION CANADIAN DOLLARS US1072 MILLION THE SMELTER WILL REPLACE A SMELTER SHUT DOWN IN 1990 THAT WAS TECHNOLOGICALLY INCOMPATIBLE WITH THE ORE IT PROCESSED COMINCO BASED IN VANCOUVER BRITISH COLUMBIA WILL CLOSE A SEPARATE OLDER LEAD SMELTER THE NEW SMELTER TO START UP IN 1996 WILL INCREASE THE COMPANY'S LEADSMELTING CAPACITY TO ABOUT 132000 TONS A YEAR UP FROM 110000 CURRENTLY COMINCO ALSO SAID IT WILL SPEND C25 MILLION TO INCREASE CAPACITY AT ITS ZINC OPERATIONS OVER THE NEXT THREE YEARS TO ABOUT 320000 TONS A YEAR FROM 290000 UNDER AN AGREEMENT WITH BRITISH COLUMBIA THE PROVINCE WILL PAY COMINCO C518 MILLION FOR THE RIGHT TO EXPAND POWER PRODUCTION AT TWO COMINCO HYDROELECTRIC DAMS NEAR TRAIL THE MINING CONCERN ALSO AGREED TO PAY THE PROVINCE A VARIABLE AMOUNT BASED ON PROFIT AT TRAIL A SPOKESMAN SAID THE AMOUNT DEPENDS ON METAL PRICES IN THE NEXT SEVERAL YEARS 9403070008 940307 BUFFETT LIFTS SALOMON STAKE TO 1904 WITH 2725 MILLION SHARE PURCHASE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAKING A BET THAT SALOMON INC'S HIGHPROFILE PROBLEMS ARE BEHIND IT BILLIONAIRE INVESTOR WARREN E BUFFETT HAS SPENT 2725 MILLION ADDING TO HIS STAKE IN THE SECURITIES COMPANY THE LEGENDARY INVESTOR ALREADY HAS A PAPER PROFIT ON THE BULK OF THE SHARES PURCHASED RECENTLY THE SHARES WERE BOUGHT IN FEBRUARY AND EARLY MARCH ALL BUT 624300 OF THEM AT PRICES BELOW SALOMON'S FRIDAY CLOSE THAT CLOSE WAS 49625 UP 50 CENTS AFTER WHICH THE BUYING BY MR BUFFETT'S CAMP WAS DISCLOSED THE PURCHASES WERE MADE BY NATIONAL INDEMNITY CO A UNIT OF THE OMAHA NEB HOLDING COMPANY HE RUNS BERKSHIRE HATHAWAY INC MR BUFFETT IS SALOMON'S LARGEST SHAREHOLDER AND SERVED AS ITS INTERIM CHAIRMAN FROM AUGUST 1991 THROUGH MID1992 SHEPHERDING THE COMPANY THROUGH A FEDERAL INVESTIGATION THAT COST THE SALOMON PRESTIGE CLIENTS MARKET SHARE AND SEVERAL TOP OFFICIALS IN ADDITION TO PENALTIES AND RESTITUTION TOTALING 290 MILLION THE INVESTIGATION RESULTED FROM DISCLOSURE IN AUGUST 1991 THAT ITS SALOMON BROTHERS BROKERAGE UNIT HAD VIOLATED BIDDING RULES IN TREASURY NOTE AUCTIONS HELD IN DECEMBER 1990 AND IN FEBRUARY AND MAY 1991 CHAIRMAN JOHN GUTFREUND STEPPED DOWN AS A RESULT OF THE SUBSEQUENT SCANDAL MR BUFFETT TOOK THE HELM UNTIL JUNE 1992 WHEN HIS HANDPICKED SUCCESSOR ROBERT DENHAM THEN THE COMPANY'S GENERAL COUNSEL SUCCEEDED HIM MR BUFFETT REMAINS A SALOMON DIRECTOR IN SEPTEMBER MR BUFFETT RECEIVED CLEARANCE FROM FEDERAL REGULATORS TO LIFT HIS STAKE IN SALOMON TO AS MUCH AS 249 HE STILL NEEDS BOARD APPROVAL HOWEVER TO CRACK THE 20 BARRIER GUY MOSZKOWSKI SECURITIES INDUSTRY ANALYST AT SANFORD C BERNSTEIN & CO SAID MR BUFFETT'S RECENT PURCHASES WERE MEANINGFUL AND IT'S EVEN MORE MEANINGFUL THAT HE WAITED UNTIL AFTER THE STUNNING FOURTHQUARTER RESULTS WHICH MOVED SHARE PRICES HIGHER BEFORE BUYING SUCH A MOVE SUGGESTS LONGTERM CONFIDENCE IN THE STOCK IN THE FOURTH QUARTER BOOSTED BY INCOME FROM ITS PROPRIETARYTRADING OPERATIONS SALOMON EARNED 433 A SHARE COMPARED WITH 110 IN THE YEAREARLIER QUARTER MR MOSZKOWSKI HAS A BUY RECOMMENDATION ON SALOMON SHARES CONSIDERING THEM UNDERPRICED RELATIVE TO THE INDUSTRY MR BUFFETT INCREASED HIS SALOMON HOLDINGS IN A SERIES OF 18 SEPARATE PURCHASES MADE FROM FEB 3 THROUGH FRIDAY WHEN THE BULK OF THE SHARES 2979000 WERE PURCHASED HE PAID SHARE PRICES RANGING FROM 4798 TO 5070 ACCORDING TO THE COMPANY THIS ROUND OF PURCHASES FOLLOWS A SPATE OF BUYING OVER THE WINTER LAST NOVEMBER MR BUFFETT BOUGHT 495200 SHARES FOR 21 MILLION RAISING HIS SALOMON STAKE TO 147 FROM 143 THE PURCHASES BRING BERKSHIRE HATHAWAY'S TOTAL HOLDINGS TO 6015000 SHARES AND 700000 PREFERRED SHARES WHICH ARE CONVERTIBLE TO 184 MILLION COMMON SHARES AT 38 A SHARE WHILE MOST SECURITIESCOMPANY STOCKS HAVE GIVEN BACK THEIR GAINS IN RECENT MONTHS AS THE WALL STREET BOOM HAS SLOWED SALOMON SHARES CLIMBED IN 1993 AND HAVE HELD RELATIVELY STEADY FOR THE PAST SEVERAL MONTHS THE STOCK HIT A 12MONTH LOW OF 34375 LAST MAY TRADED AS HIGH AS 51875 IN SEPTEMBER AND HAS BEEN IN A 4750 TRADING RANGE FOR MUCH OF 1994 MR BUFFETT FIRST BECAME A MAJOR SALOMON SHAREHOLDER IN 1987 WHEN HE BOUGHT THE PREFERRED SHARES A 12 STAKE FOR 700 MILLION A PURCHASE THAT HELPED FEND OFF RONALD PERELMAN'S UNWELCOME ADVANCES 9403070007 940307 FOREIGN EXCHANGE JUMPY TRADING IS EXPECTED THIS WEEK DUE TO TRADE ISSUES TACTICAL MANEUVERS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK TRADE POLITICS AND TACTICAL MANEUVERS AMONG SHORTTERM MARKET PLAYERS WILL KEEP CURRENCY TRADING JUMPY THIS WEEK BUT THE DOLLAR'S TREND IS BULLISH AGAINST BOTH THE MARK AND THE YEN TRADERS AND ANALYSTS SAY SOME DEALERS HAD EXPECTED A STRONG US EMPLOYMENT REPORT FRIDAY TO PROMPT ANOTHER TIGHTENING OF MONETARY POLICY BOOSTING THE DOLLAR THOUGH THAT DIDN'T HAPPEN FEW IN THE MARKET QUESTION THE TREND TOWARD STRONGER DOMESTIC GROWTH AND EVENTUALLY HIGHER RATES OR TOWARD LOWER EUROPEAN RATES NOTWITHSTANDING THE RISE IN EUROPEAN BOND YIELDS THE CONTINENT'S RECESSION IS NO LESS ENTRENCHED AND ITS NEED FOR MONETARY EASING NO LESS PRESSING THAN IT WAS LATE LAST YEAR HOW QUICKLY GERMAN RATES GO DOWN IS NOT THE ISSUE SAYS CHESTER RUBEN SENIOR FOREIGN EXCHANGE DEALER AT CONTINENTAL BANK IN CHICAGO RATES THERE ARE GOING LOWER RATES HERE ARE GOING HIGHER AND THAT'S ALL THERE IS TO IT THAT RATE SHIFT WHICH MAKES DOLLARDENOMINATED ASSETS MORE APPEALING IN COMPARISON TO GERMAN ONES POINTS THE DOLLAR TOWARD 175 TO 180 MARKS SAYS EARL JOHNSON FOREIGN EXCHANGE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO BUT CURRENCY DEALERS WON'T START BUYING UNTIL CENTRAL BANKS ACT HE SAYS AND HE DOESN'T EXPECT RATE CHANGES FROM EITHER THE FEDERAL RESERVE BOARD OR THE BUNDESBANK UNTIL THE END OF MARCH MANY PLAYERS ALSO HAVE TACTICAL REASONS FOR POSTPONING DOLLARBUYING TURMOIL IN EUROPEAN BOND MARKETS HAS LEFT SOME PLAYERS HOLDING LONG DOLLAR POSITIONS TAKEN TO HEDGE AGAINST A RISING US CURRENCY SAY ECONOMISTS AND FUND MANAGERS PLAYERS WHO HAVE ALREADY SOLD UNNEEDED DOLLARS MAY BE RELUCTANT TO LEAP BACK INTO THE CURRENCY MARKETS RIGHT AWAY ESPECIALLY AS THE END OF THE FIRST QUARTER NEARS TRADERS ADD AND TRADERS WHO GLEAN CURRENCY MOVES FROM PRICE CHARTS ALSO SAY THE DOLLAR IS DUE TO RETEST THE 16950MARK LEVEL NOTES MR JOHNSON OF HARRIS BANK LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 17190 MARKS AND 10565 YEN COMPARED WITH 17105 MARKS AND 10395 YEN THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10568 YEN AND AT 17232 MARKS CURRENCY PLAYERS ARE ALSO CONFIDENT ABOUT THE DOLLAR'S LONGTERM PROSPECTS AGAINST THE YEN BUT EXPECT THE CLIMB TO BE SLOWER AND BUMPIER THAN AGAINST THE MARK OVER THE NEXT FEW WEEKS THEY SAY THE DOLLAR WILL BE VULNERABLE TO SETBACKS FROM EVERY NEWS ITEM ABOUT ESCALATING TRADE TENSIONS BETWEEN THE US AND JAPAN THE DOLLAR'S ONEANDAHALFYEN RISE FRIDAY WAS A FUNCTION OF AGGRESSIVE INTERVENTION BY THE BANK OF JAPAN TRADERS SAY THOSE GAINS THEY SAY MAY NOT WITHSTAND FURTHER TURMOIL ON THE TRADE FRONT WHAT YOU SAW FRIDAY WILL GO DOWN IN ANNALS OF CURRENCY TRADING AS ONE OF THE BEST SHORT SQUEEZES EVER SAYS DAVID DE ROSA FOREIGN EXCHANGE DIRECTOR AT SWISS BANK CORP BUT THIS WAS A SPECIAL CIRCUMSTANCE NOT ONLY DID JAPAN'S CENTRAL BANK LAUNCH REPEATED AND VIGOROUS ATTACKS ON THE YEN HE SAYS BUT IT TIMED THE MOVE TO CAPITALIZE ON THE CRITICAL MASS OF SHORT DOLLAR POSITIONS ACCUMULATED ON NEWS OF REINSTATEMENT OF THE SUPER 301 TRADE MEASURE THE MEASURE ALLOWS THE CLINTON ADMINISTRATION TO RETALIATE AGAINST TRADING PARTNERS PERCEIVED AS ENGAGING IN UNFAIR TRADE PRACTICES ALTHOUGH THE BANK'S IMPLACABLE DEFENSE OF THE 103YEN LEVEL WILL MAKE YENBUYERS WARY THIS WEEK SWISS BANK'S MR DE ROSA SAYS CURRENCY PLAYERS WILL STILL TEND TO RESPOND TO NEWS OF TRADE CONFLICT BY SELLING DOLLARS WE'LL GO BACK TO THE OLD RULE THAT ANYTHING THAT SMACKS OF TRADE FRICTION SHOULD STRENGTHEN THE YEN WHILE RELIEF SHOULD CAUSE THE DOLLARYEN TO RISE HE SAYS 9403070006 940307 SCIENTIFICATLANTA SETS CABLETV DEAL WITH TIME WARNER ATLANTA SCIENTIFICATLANTA INC SAID IT AGREED TO PROVIDE AS MANY AS ONE MILLION HOMECOMMUNICATION TERMINALS TO TIME WARNER INC'S CABLE UNIT OVER THREE YEARS WHILE TERMS WEREN'T DISCLOSED NEWS OF THE PACT HELPED TO PUSH SCIENTIFICATLANTA'S SHARE PRICE TO 31125 UP 350 OR 13 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE THE AGREEMENT IS THE LATEST EVIDENCE OF SCIENTIFICATLANTA'S INCREASINGLY CLOSE RELATIONSHIP WITH TIME WARNER AND ITS CABLETV UNIT TIME WARNER CABLE IN MAY 1993 TIME WARNER CABLE SELECTED SCIENTIFICATLANTA TO SUPPLY A CABLECONVERTER BOX WITH PERSONALCOMPUTING POWERS FOR TIME WARNER'S NEW INTERACTIVE CABLE SYSTEM IN ORLANDO FLA THE FLORIDA SYSTEM ORIGINALLY SCHEDULED TO BE LAUNCHED IN APRIL BUT RECENTLY PUSHED BACK TO THE FOURTH QUARTER OF THIS YEAR WILL BE THE FIRST TO USE DIGITAL RATHER THAN ANALOG TECHNOLOGY OFFERING MOVIES ON DEMAND AND INTERACTIVE EDUCATIONAL SERVICES AMONG OTHER FEATURES THE TERMINALS OR SETTOP BOXES IN THE AGREEMENT ANNOUNCED FRIDAY WILL BE ANALOG BUT WILL HAVE THE ABILITY TO ADD ADVANCED CABLE SERVICES AS THEY BECOME AVAILABLE UNDER THE AGREEMENT TIME WARNER CABLE WILL BUY 500000 SETTOP BOXES KNOWN AS 8600X TERMINALS OVER TWO YEARS THE NUMBER COULD REACH AS HIGH AS ONE MILLION IN THE THIRD YEAR OF THE CONTRACT TIME WARNER CABLE IS THE US'S SECONDLARGEST CABLETV OPERATOR SERVING MORE THAN SEVEN MILLION HOMES IN 36 STATES SCIENTIFICATLANTA A MAKER OF TELECOMMUNICATIONS EQUIPMENT IS EXPECTED TO BENEFIT FROM INCREASES IN CAPITAL SPENDING WITHIN THE CABLE INDUSTRY AS MORE OPERATORS MOVE TO UPGRADE THEIR SYSTEMS 9403070005 940307 INTERNATIONAL WASHINGTON INSIGHT US EFFORTS TOWARD POPULATION CONTROL EMBROIL IT IN DISPUTE OVER PROGRAMS BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUST AS THE US GOVERNMENT IS GETTING INVOLVED AGAIN IN EFFORTS TO CONTROL THE WORLD'S POPULATION IT IS ENCOUNTERING A COMPLEX NEW DISPUTE THIS TIME THE FIGHT ISN'T OVER WHETHER THE US SHOULD SUPPORT INTERNATIONAL POPULATION PROGRAMS PRESIDENT CLINTON HAS DECIDED IT SHOULD THE FRACAS NOW CENTERS ON WHAT SORT OF PROGRAMS TO BACK AND IT PITS WOMEN'S GROUPS AGAINST TRADITIONAL POPULATION EXPERTS WOMEN'S ADVOCACY ORGANIZATIONS LIKE THE NEW YORKBASED INTERNATIONAL WOMEN'S HEALTH COALITION CHARGE THAT TRADITIONAL TOPDOWN PROGRAMS HAVE REDUCED WOMEN IN THE DEVELOPING WORLD TO PAWNS IN A GLOBAL DRIVE TO REDUCE THE NUMBER OF BIRTHS THEY DEMAND A BROAD RANGE OF SERVICES THAT GO BEYOND ADDRESSING FERTILITY TO DEALING WITH SUCH CONCERNS AS WOMEN'S HEALTH EDUCATION AND ECONOMIC ROLES THE TRADITIONALISTS ARGUE THAT SUCH DEMANDS THREATEN TO DILUTE POPULATIONCONTROL EFFORTS EVEN AS BIRTHS ARE POISED TO ACCELERATE IN SOME OF THE POOREST REGIONS OF THE WORLD THE STRAINS COULD SNARL THE UNITED NATIONS CONFERENCE ON POPULATION TO BE HELD IN CAIRO IN SEPTEMBER THIS NEEDN'T BE ANY POPULATION OR FAMILYPLANNING PROGRAM THAT IS INSENSITIVE TO WOMEN'S NEEDS WILL FAIL IF WOMEN FEEL POPULATIONCONTROL CLINICS DON'T SERVE THEIR NEEDS BY SAY PRESENTING STERILIZATION AS THE SOLE MEANS OF CONTRACEPTION THEY WON'T SHOW UP THE EXCEPTIONS OF COURSE ARE THE WORLD'S REMAINING TOTALITARIAN STATES WHERE AUTHORITIES ENGAGE IN UTTERLY COERCIVE PRACTICES THERE IS NO DOUBT THAT THE WORLD FACES A PROBLEM OF ACCELERATING POPULATION GROWTH THE NUMBER OF WOMEN OF REPRODUCTIVE AGE HAS GROWN TO MORE THAN ONE BILLION FROM 600 MILLION IN 1980 AND WILL REACH 15 BILLION BY 2010 WORLD POPULATION WILL EXPAND SUBSTANTIALLY EVEN IF THOSE WOMEN HAVE ONLY TWO CHILDREN EACH IF THEY GIVE BIRTH TO SIX OR SEVEN CHILDREN AS IS THE NORM IN SOME COUNTRIES THE NEXT GENERATION LIKELY WILL FACE MORE POVERTY BIGGER ENVIRONMENTAL PROBLEMS AND LARGER MIGRATION FLOWS NOTWITHSTANDING THE DEMOGRAPHERS' TALLIES POPULATION QUESTIONS TURN ON HIGHLY PERSONAL DECISIONS BY INDIVIDUAL WOMEN AND MEN TO MOUNT ANY PROGRAM IN WHICH THEIR PREFERENCES AND APPREHENSIONS ARE DISMISSED ISN'T ONLY ARROGANT IT'S ABSURD IT SEEMS TO OVERLOOK WHERE BABIES COME FROM WOMEN HAVE TO BE SEEN AS ACTORS IN THIS NOT MEANS TO AN END SAYS JOAN DUNLOP PRESIDENT OF THE INTERNATIONAL WOMEN'S COALITION IN WORKING WITH DEVELOPING COUNTRIES AND THE WOMEN WHO LIVE THERE SHE ADDS WE HAVE TO EARN OUR PARTNERSHIP RATHER THAN IMPOSE OUR LEADERSHIP TIM WIRTH THE STATE DEPARTMENT'S SPECIAL COUNSELOR ON POPULATION AND A SLEW OF OTHER ISSUES HAS BEEN TRYING TO RECONCILE SOME OF THE DIFFERENCES BETWEEN THE TRADITIONALISTS AND WOMEN'S GROUPS AS A FIRST STEP HE AND OTHERS HAVE TO COME TO TERMS WITH THE FACT THAT SOME POPULATION PROGRAMS HAVE GIVEN THE FIELD A BAD NAME REPORTS PROLIFERATE OF COERCED ABORTIONS IN CHINA FOR INSTANCE BUT THE TROUBLE ISN'T CONFINED TO TOTALITARIAN SOCIETIES IN INDIA THE CENTRAL GOVERNMENT SETS NUMERICAL POPULATION TARGETS AND PASSES THEM DOWN TO STATE AND LOCAL GOVERNMENTS AT TIMES BUREAUCRATS MANNING A NETWORK OF MORE THAN 150000 HEALTH CENTERS AND CLINICS ARE PAID ACCORDING TO HOW WELL THEY MEET THE TARGETS THE STATE OF RAJASTHAN'S PARLIAMENT RECENTLY VOTED THROUGH A LAW THAT BARS GOVERNMENT EMPLOYMENT OR PUBLIC OFFICE TO PEOPLE WHO HAVE HAD MORE THAN TWO CHILDREN THE MAIN METHOD OF CONTRACEPTION IN INDIA IS THE STERILIZATION OF WOMEN OTHER APPROACHES OFTEN AREN'T EVEN OFFERED POPULATION ACTION INTERNATIONAL A MORE TRADITIONAL POPULATIONCONTROL ADVOCACY GROUP BASED IN WASHINGTON NOTES THAT THE INDIAN POPULATION PROGRAM HAS PREVENTED ABOUT 90 MILLION BIRTHS SINCE ITS INCEPTION IN THE 1950S BUT EVEN IT CRITICIZES INDIA'S APPROACH OFFICIALS INVOLVED IN POPULATION WORK SAY THE INDIAN GOVERNMENT RESISTS FOREIGN MEDDLING ON POPULATION MATTERS THOUGH STILL THE QUESTION REMAINS HOW MUCH MORE SUCCESS COULD INDIA HAVE ACHIEVED WITH A MORE HUMANE APPROACH MANY INDIAN WOMEN DROP OUT OF VARIOUS FAMILYPLANNING PROGRAMS BECAUSE THEY HAVE FOUND THEM DISRESPECTFUL OR LACKING IN QUALITY IN SOME AREAS WOMEN PAY TO USE PRIVATESECTOR CONTRACEPTIVE SERVICES RATHER THAN FREE STATE CLINICS WORLDWIDE 125 MILLION WOMEN WANT CONTRACEPTION BUT DON'T NOW USE IT ACCORDING TO THE ROCKEFELLER FOUNDATION IF THIS UNMET NEED WERE SATISFIED THROUGH ACCESSIBLE CENTERS THAT WOULD ENABLE WOMEN TO CONTROL THEIR OWN FERTILITY MOST COUNTRIES' IMMEDIATE POPULATION TARGETS WOULD BE MET STEVE SINDING THE FOUNDATION'S MAIN POPULATION SPECIALIST CONCEDES THAT MEETING THESE WOMEN'S NEEDS ALONE WON'T BRING NEW BIRTHS DOWN TO REPLACEMENT LEVELS AT WHICH THERE WOULD BE NO NET POPULATION GROWTH INEVITABLY POPULATION CONTROL WILL REQUIRE MORE MONEY ABOUT 55 BILLION IS CURRENTLY SPENT ON FAMILYPLANNING AND REPRODUCTIVE SERVICES ALSO PROVIDING FOR THE WOMEN WHO WANT CONTRACEPTIVES BUT DON'T USE THEM CURRENTLY WOULD DOUBLE THAT AMOUNT IF THE TASK WERE BROADENED FURTHER TO INCLUDE BETTER EDUCATION AND A BROADER RANGE OF SERVICES THE EXPENDITURES WOULD GROW SUBSTANTIALLY HIGHER MUCH OF THE ADDITIONAL FUNDS COULD COME FROM DEVELOPING COUNTRIES PROVIDED THEY CUT MILITARY SPENDING IN SOME CASES AND PRIVATIZE STATEOWNED INDUSTRIES ULTIMATELY THOUGH THE CONFLICTING PHILOSOPHIES OF POPULATION CONTROL PROMISE TO DO MORE DAMAGE THAN ANY MONEY PROBLEMS MR WIRTH'S FIRST PRIORITY SHOULD BE TO MOVE THE DEBATE TOWARD RECONCILIATION THE REPRODUCTION WARS SHOULD END 9403070004 940307 BUSINESS BRIEF SARA LEE CORP SUPERIOR UNIT TO DISTRIBUTE PRODUCTS OF BARNIE'S COFFEE SARA LEE CORP'S SUPERIOR COFFEE & FOODS UNIT WILL BE THE EXCLUSIVE US AND CANADIAN DISTRIBUTOR FOR BARNIE'S COFFEE & TEA CO'S COFFEES AND RELATED PRODUCTS TERMS OF THE MARKETING AGREEMENT WEREN'T DISCLOSED THE COMPANIES SAID SHIPPING OF THE PRODUCTS WILL BEGIN MAY 1 BARNIE'S COFFEE OF ORLANDO FLA IS A CHAIN OF SPECIALTY COFFEE AND TEA RETAIL STORES 9403070003 940307 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALUMAX INC AN OFFERING OF EIGHT MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 12 MILLION ADDITIONAL SHARES VIA LEHMAN BROTHERS AND SG WARBURG & CO CNS INC AN OFFERING OF UP TO 1725000 COMMON SHARES INCLUDING 225000 OVERALLOTMENT SHARES VIA JOHN G KINNARD & CO HYDROQUEBEC AN OFFERING OF 35 BILLION OF SECURITIES XCELLENET INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 300000 ADDITIONAL SHARES VIA ALEX BROWN & SONS INC AND ROBERTSON STEPHENS & CO 9403070002 940307 PEOPLE PATTERNS BY ALAN L OTTEN GRANDPARENTS ARE SPENDING MORE TIME WITH THEIR GRANDCHILDREN BOTH IN CHILD CARE AND FOR FUN ONE BIT OF EVIDENCE COMES FROM A HUGE CONTINUING STUDY FINANCED BY THE NATIONAL INSTITUTE ON AGING THAT IS GATHERING INFORMATION ON THE HEALTH WORK AND ECONOMIC SITUATION AND FAMILY RELATIONSHIPS OF OVER 13000 AMERICANS BORN BETWEEN 1931 AND 1941 DRAWING ON THE RESULTS GEORGETOWN UNIVERSITY DEMOGRAPHER BETH SOLDO FINDS THAT 69 HAVE GRANDCHILDREN AND THAT ALMOST 44 OF THESE GRANDPARENTS SPENT 100 OR MORE HOURS CARING FOR A GRANDCHILD OR GRANDCHILDREN DURING THE YEAR PRECEDING THE SURVEY MOREOVER THE AVERAGE TIME SPENT IN GRANDCHILD CARE WAS A WHOPPING 659 HOURS WHICH AMOUNTS TO MORE THAN 82 EIGHTHOUR DAYS WOMEN WERE ABOUT 2 1/2 TIMES MORE LIKELY THAN MEN TO BE THE CARETAKERS AND WERE AVERAGING FROM 15 TO 20 HOURS A WEEK EVEN IF THEY THEMSELVES WERE ALSO EMPLOYED A DIFFERENT SURVEY BY ROPER STARCH WORLDWIDE INDICATES GRANDPARENTS ARE ALSO HAVING A LOT OF FUN WITH THE KIDS A LITTLE OVER ONETHIRD OF GRANDPARENTS HAD TAKEN GRANDCHILDREN TO REGULAR RESTAURANTS DURING THE MONTH BEFORE THE POLL AND A SIMILAR PROPORTION HAD TAKEN THEM TO FASTFOOD PLACES ONETHIRD REPORTED GOING SHOPPING WITH GRANDCHILDREN DURING THE MONTH AND OVER ONEFIFTH HAD TAKEN THEM ON A TRIP OR TO MOVIES SPORTS EVENTS MUSEUMS AND OTHER PLACES ALL PERCENTAGES WERE APPRECIABLY HIGHER THAN IN A SIMILAR POLL FIVE YEARS EARLIER ROPER NOTES THAT TODAY'S GRANDPARENTS ARE YOUNGER HEALTHIER LIVELIER AND MORE FINANCIALLY SECURE THAN PREVIOUS GENERATIONS OF OLDER AMERICANS AND THAT THE MOST ACTIVE GRANDPARENTS TEND TO BE THOSE BETWEEN 45 AND 59 YEARS OLD IT FINDS THAT GRANDFATHERS ARE STILL LESS INVOLVED THAN GRANDMOTHERS BUT ARE DOING MORE THAN THEY USED TO PARTICULARLY BUYING GIFTS FOR THE YOUNGSTERS TAKING TRIPS WITH THEM AND TAKING THEM TO MOVIES SHOWS AND ATHLETIC EVENTS OUTOFWEDLOCK CHILDBEARING SUBSTANTIALLY REDUCES A TEENAGER'S CHANCES OF EVENTUAL MARRIAGE YALE SOCIOLOGIST NEIL BENNETT COLUMBIA ECONOMIST DAVID BLOOM AND PRINCETON ECONOMIST CYNTHIA MILLER ANALYZED FOUR LARGE NATIONAL SURVEYS THAT HAD GATHERED INFORMATION ON THE CHILDBEARING AND MARITAL HISTORY OF THE RESPONDENTS WOMEN WHO HAD HAD A NONMARITAL CHILD AS TEENAGERS WERE TWO TO THREE TIMES LESS LIKELY TO HAVE MARRIED BY THE AGE OF 35 THAN COMPARABLE TEENAGERS WHO HADN'T HAD AN OUTOFWEDLOCK KID DID POOR MARRIAGE PROSPECTS INCREASE THE CHANCES THE TEENAGER WOULD HAVE AN OUTOFWEDLOCK CHILD OR DID THE OUTOFWEDLOCK CHILD MAKE HER A LESS APPEALING MARRIAGE PROSPECT ALL THE DATA POINTS TO THE LATTER EXPLANATION THE RESEARCHERS ASSERT FOR EXAMPLE ONE STUDY FOUND THAT NEARLY 85 OF NONMARITAL BIRTHS TO TEENAGERS WERE REPORTED AS UNPLANNED AND UNWANTED ANOTHER INQUIRY ASKED WHETHER THE TEENAGER EXPECTED TO BE MARRIED WITHIN FIVE YEARS FIVE YEARS LATER A FAR HIGHER PROPORTION OF THOSE WHO ANSWERED AFFIRMATIVELY AND THEN DIDN'T HAVE OUTOFWEDLOCK BIRTHS WERE MARRIED THAN OF THOSE WHO ANSWERED AFFIRMATIVELY BUT THEN HAD AN ILLEGITIMATE CHILD FOR MOST WOMEN THE STUDY CONCLUDES NONMARRIAGE IS THE CONSEQUENCE NOT THE CAUSE OF THEIR NONMARITAL CHILDBEARING THIS RESULT HAS DISTURBING IMPLICATIONS FOR THE FUTURE THE THREE ACADEMICS CONCLUDE THE CONTINUING INCREASE IN BIRTHS TO UNMARRIED YOUNG WOMEN BECOMES ESPECIALLY OMINOUS THEY SAY WHEN TAKEN TOGETHER WITH THE EXTREMELY HIGH POVERTY RATES FOR HOUSEHOLDS HEADED BY NEVERMARRIED MOTHERS FEDERAL WORKERS ARE MORE HIGHLY EDUCATED AND OLDER THAN THE US WORK FORCE AT LARGE AN ANALYSIS BY THE CONGRESSIONAL BUDGET OFFICE SAYS THAT 83 OF THE GOVERNMENT'S 23 MILLION CIVILIAN EMPLOYEES INCLUDING CONGRESS THE COURTS AND THE EXECUTIVE BRANCH ARE IN WHITECOLLAR JOBS ABOUT ONEFOURTH ARE CLASSIFIED AS ADMINISTRATIVE A LITTLE OVER ONEFIFTH AS PROFESSIONAL AND JUST UNDER ONEFIFTH AS TECHNICAL THE REST ARE MOSTLY CLERICAL IN ALL 850 OCCUPATIONS ARE REPRESENTED CBO NOTES THAT THE PROPORTION OF PROFESSIONAL AND ADMINISTRATIVE JOBS HAS BEEN INCREASING STEADILY AS FEDERAL WORK DEMANDS HAVE GROWN MORE COMPLEX IN 1980 ABOUT 37 OF THE GOVERNMENT'S CIVILIAN WORKERS HELD SUCH JOBS BUT BY 1992 THIS FIGURE WAS UP TO 48 EDUCATIONAL QUALIFICATIONS HAVE INCREASED COMMENSURATELY IN 1980 28 OF ALL FEDERAL CIVILIAN EMPLOYEES HAD A BACHELOR'S DEGREE OR HIGHER AND THIS ROSE TO 36 BY 1992 THE COMPARABLE FIGURE FOR THE NATIONAL WORK FORCE IN 1992 WAS ABOUT 27 CITING GENERAL ACCOUNTING OFFICE FIGURES CBO SAYS THE GOVERNMENT WORK FORCE ALSO IS RELATIVELY OLD AND DEFINITELY AGING IN 1990 ABOUT 74 OF FEDERAL WORKERS WERE 35 OR OLDER UP FROM 66 IN 1976 IN COMPARISON ONLY 53 OF WORKERS OUTSIDE THE GOVERNMENT WERE 35 AND OLDER IN 1990 FEDERAL PERSONNEL MANAGERS BELIEVE THE AVERAGE AGE OF THE FEDERAL WORK FORCE WILL CONTINUE TO RISE CBO ADDS BRINGING AN UNUSUALLY LARGE NUMBER OF RETIREMENTS AROUND THE TURN OF THE CENTURY POOR YOUNG MEN GROWING UP IN AREAS NEAR A FOURYEAR COLLEGE GET APPRECIABLY MORE EDUCATION THAN THOSE WHO DON'T HAVE A COLLEGE NEARBY PRINCETON ECONOMIST DAVID CARD REPORTS HIS INVESTIGATIONS SUGGEST THAT THE PRESENCE OF A LOCAL COLLEGE SERVES NOT ONLY TO LOWER THE COST OF HIGHER EDUCATION BUT ALSO TO RAISE POOR FAMILIES' PERCEPTION OF THE ECONOMIC VALUE OF A COLLEGE DEGREE ELDERLY SUICIDES BY FAR FAVOR GUNS OVER OTHER POSSIBLE METHODS ACCORDING TO RESEARCHERS FROM THE UNIVERSITY OF ILLINOIS SCHOOL OF SOCIAL WORK THEY SAY THIS HOLDS FOR BOTH MEN AND WOMEN THOUGH MEN ARE ABOUT SIX TIMES MORE APT TO USE GUNS THAN WOMEN ARE 9403070001 940307 VIDEOGAME MAKERS WILL SET UP SYSTEM FOR RATING PRODUCTS A WALL STREET JOURNAL NEWS ROUNDUP A GROUP OF VIDEOGAME MAKERS REPRESENTING MOST OF THE INDUSTRY SAID IT WILL DEVISE A VOLUNTARY RATINGS SYSTEM LABELING NEW PRODUCTS ACCORDING TO THE LEVEL OF SEX AND VIOLENCE IN TIME FOR THIS YEAR'S HOLIDAY BUYING SEASON THE PROPOSAL FROM THE INTERACTIVE ENTERTAINMENT INDUSTRY RATINGS SYSTEMS COMMITTEE COMES AS LAWMAKERS IN WASHINGTON INCREASINGLY TROUBLED BY THE PROLIFERATION OF GORY ACTS AND SUGGESTIVE THEMES PREPARE TO INTRODUCE LEGISLATION THAT WOULD MAKE RATINGS MANDATORY SOME RETAILERS INCLUDING WALMART STORES INC AND BABBAGE'S INC PROMISED TO CARRY ONLY RATED VIDEO GAMES BUT SOME CRITICS FEAR ALL THE RATINGS WOULD DO IS WHET THE APPETITES OF TEENAGERS WHILE SOME INDUSTRY WATCHERS SAID THEY ARE PLEASED WITH THE SELFPOLICING PLAN CRITICS CONTINUE TO CALL FOR AN OUTSIDE AGENCY TO MONITOR THE GAMES YOU DON'T PUT THE MONKEYS IN CHARGE OF THE ZOO SAID MARILYN DROZ VICE PRESIDENT OF THE NATIONAL COALITION ON TELEVISION VIOLENCE NCTV AND OTHER GROUPS PREFER AN INDEPENDENT RATINGS AGENCY TO CURB THE SEX AND VIOLENCE IN VIDEO GAMES AND NOT JUST LABEL THEM SHE SAID UNDER THE COMMITTEE'S PLAN PRODUCTS COMING TO MARKET AFTER NOV 1 WILL BE RATED ROUGHLY ACCORDING TO GUIDELINES USED BY THE MOVIE INDUSTRY GAMES DEEMED SUITABLE FOR ALL AGES WILL BE LABELED GA FOR GENERAL AUDIENCE FARE FOR CHILDREN 13 AND OLDER WILL BE LABELED MA13 AND AN MA17 LABEL WILL BE FOR MATERIAL SUITABLE FOR PLAYERS 17 AND OLDER RATINGS WOULD BE GIVEN ONLY TO THE NEW CROPABOUT 2500 VIDEO GAMES ANNUALLY BUT NOT TO THE 5000 GAMES ALREADY ON THE MARKET SAID JACK HEISTAND CHAIRMAN OF THE COMMITTEE 9403070035 940225 LEISURE & ARTS BUSINESS BOOKSHELF MORE ON THE MAN WHO GAVE US MORE BY SUSAN LEE NO QUESTION JOHN MAYNARD KEYNES 18831946 EXERTS A POWERFUL INFLUENCE NOT ONLY HAS HE MOVED NATIONAL ECONOMIES INTO INFLATIONARY EXCESS BUT HIS BIOGRAPHER AS WELL ROBERT SKIDELSKY THE AUTHOR OF A MUCHPRAISED FIRST VOLUME ON KEYNES HAS JUST PRODUCED A SECOND ONE AT A STAGGERING 731 PAGES THIS VOLUME IS 284 PAGES LONGER THAN THE FIRST AND EVEN THAT WASN'T ENOUGH MR SKIDELSKY DISCLOSES THAT THE FINAL CHAPTERS HAVE BEEN DEFERRED TO YET A THIRD VOLUME JOHN MAYNARD KEYNES THE ECONOMIST AS SAVIOR ALLEN LANE/PENGUIN 3750 COVERS THE YEARS 1920 THROUGH 1937 THE PERIOD IN WHICH THE AUTHOR REMINDS US PERSISTING MASS UNEMPLOYMENT BECAME THE PROBLEM WHICH WAS TO BE HIS LIFE'S WORK TO SOLVE IT ENDS WITH THE PUBLICATION OF HIS SOLUTION THE GENERAL THEORY OF EMPLOYMENT INTEREST AND MONEY ALONG THE WAY MR SKIDELSKY WARMLY DESCRIBES KEYNES'S SURPRISING MARRIAGE TO THE BALLERINA LYDIA LOPOKOVA A LOOPY HALFWIT WITH A FALTERING COMMAND OF THE ENGLISH LANGUAGE WHO ANNOYED HIS BLOOMSBURY FRIENDS ANYBODY WITH A NODDING ACQUAINTANCE WITH KEYNES'S LIFE KNOWS THAT THE INFLATION PROBLEM SPRINGS FROM HIS VERY CORE KEYNES SUFFERED FROM PERSONALITY INFLATION ECONOMIST INVESTOR JOURNALIST AUTHOR PATRON OF THE ARTS HOMOSEXUAL HETEROSEXUAL BLOOMSBURY BOHO CITY MAN COMMITTEEMAN POLITICIAN BUREAUCRAT PROFESSOR MR SKIDELSKY GIVES A PRETTY GOOD ACCOUNT OF ALL THESE PERSONAE INCLUDING ONE THAT WAS A NASTY SURPRISE TO ME ANTISEMITE THERE IS THE KEYNES WHO DOUBTS THAT COMMUNISM MAKES JEWS LESS AVARICIOUS THERE IS THE KEYNES WHO DESCRIBES GERMANY AS UNDER THE UGLY THUMB OF ITS IMPURE JEWS WHO HAVE SUBLIMATED IMMORTALITY INTO COMPOUND INTEREST AND THE KEYNES WHO COMMENTS I STILL THINK THE RACE HAS SHOWN ITSELF NOT MERELY FOR ACCIDENTAL REASONS MORE THAN NORMALLY INTERESTED IN THE ACCUMULATION OF USURY KEYNES ALSO SUFFERED FROM SELFIMAGE INFLATION AS MR SKIDELSKY PUTS IT FROM THE FIRST KEYNES THOUGHT THAT HE WAS SAYING SOMETHING NEW AND THAT HIS ELDERS WERE TOO STUPID OR CONVENTIONAL TO UNDERSTAND IT AND NOT JUST HIS ELDERS AT ONE POINT OR ANOTHER KEYNES FOUND BUSINESSMEN BANKERS POLITICIANS ARTISTS FRIENDS AND COLLEAGUES TO BE STUPID IN FACT THE WHOLE NOTION OF KEYNESIANISM IS BASED ON THE IDEA THAT AS MR SKIDELSKY TELLS US THE WORLD WAS BEING RUINED BY STUPIDITY MR SKIDELSKY ADDS TO THE IMAGE INFLATION BY PRONOUNCING KEYNES A SAVIOR THE MAN WHO SAVED THE WORLD FROM THIS STUPIDITY HE TALKS ABOUT KEYNES'S MIND BEING HABITUATED TO RESPONSIBILITY AND DUTY AND SAYS THAT KEYNES SET OUT TO SAVE THE WORLD FROM ITS FOLLY EVEN THOUGH HE DISLIKED CAPITALISM BUT ASIDE FROM MR SKIDELSKY'S ASSERTIONS THAT KEYNES WAS A SAVIOR THERE IS LITTLE EVIDENCE THAT KEYNES WAS MOTIVATED BY A SENSE OF DUTY OR RESPONSIBILITY RATHER THERE ARE AMPLE EXAMPLES THAT KEYNES WAS MOTIVATED BY EGO ARROGANCE AND PERSONAL PIQUE AND AN ENORMOUS WILL TO PREVAIL MOREOVER IT IS NOT CLEAR THAT CAPITALISM NEEDED SAVING WHAT GOT KEYNES COOKING ON ALL FOUR BURNERS APPARENTLY WAS THE WORLDWIDE DEPRESSION IN THE LATE 1920S AND '30S A WORLD DEPRESSION SHOULD COMMAND ATTENTION BUT THE FACT OF ONE DOES NOT NECESSARILY MEAN THAT LAISSEZ FAIRE HAD FAILED OR THAT A SELFREGULATING SELFADJUSTING MARKET WAS NOT SUSTAINABLE AS KEYNES THOUGHT AND MR SKIDELSKY REPEATS TIRELESSLY MR SKIDELSKY DOESN'T HELP HIS ARGUMENT WHEN HE MISATTRIBUTES THE CAUSE OF THE DEPRESSION TO THE STOCKMARKET CRASH OF 1929 ACTUALLY THE CRASH WAS ANCILLARY TO THE DEPRESSION A DRAMATIC EXPRESSION OF THE RECESSION THEN OCCURRING WHAT TURNED THAT RECESSION INTO THE LONG DEPRESSION WERE OTHER FACTORS SUCH AS THE TIGHT MONETARY POLICY BY THE FEDERAL RESERVE AND A PROTECTIONIST TRADE POLICY BY CONGRESS FURTHER IT IS CERTAINLY NOT CLEAR AND MR SKIDELSKY SKIMS OVER THIS POINT THAT KEYNESIAN POLICIES WERE UNDERTAKEN EVEN IF THE CASE COULD BE MADE CONVINCINGLY KEYNESIANISM DIDN'T SAVE CAPITALISM THAT WAS ACCOMPLISHED BY WORLD WAR II INDEED WHEN KEYNESIAN POLICIES WERE CLEARLY AND FORCEFULLY TRIED IN THE US IN THE '60S AND '70S THEY WERE A BUST IN FACT TWO DECADES OF INCREASING GOVERNMENT SPENDING AND INTERVENTION IN THE ECONOMY LEFT THE US WITH LOW GROWTH HIGH INFLATION AND SLUGGISH PRODUCTIVITY BUT MR SKIDELSKY IS VERY COY ON THE LARGER QUESTION OF WHETHER KEYNES'S THEORIES WERE RIGHT OR JUST A LOT OF HOT AIR SOMETIMES HE SUGGESTS THAT KEYNESIANISM WAS TRIED AND ITS ONLY FAULT WAS NAIVETE BECAUSE KEYNES FAILED TO FORESEE INCOMPETENCE BAD JUDGMENT AND/OR CORRUPTIBILITY ON THE PART OF GOVERNMENT BUREAUCRACIES SOMETIMES MR SKIDELSKY ARGUES THAT WHAT WAS PRACTICED AND CALLED KEYNESIAN HAD NOTHING TO DO WITH KEYNES THE UNCERTAINTY WHICH IMPOSED MEDIOCRE PERFORMANCE ON UNMANAGED MARKET ECONOMIES APPLIED EQUALLY TO THE EFFECTS OF GOVERNMENT POLICY KEYNES'S DISCIPLES THE POLICYMAKERS OF THE '60S AND '70S COULD NOT HOLD THIS BALANCE IN THEIR MINDS THEY ACTUALLY DID START TO ACT AS THOUGH THEY BELIEVED THAT THE POWER OF ECONOMISTS OVER ECONOMICS WAS VIRTUALLY UNLIMITED THIS IS BECAUSE THEY INHERITED KEYNES'S MACHINERY BUT NOT THE PHILOSOPHY WHICH SETS LIMITS TO THE SCOPE AND EFFECTIVENESS OF THAT MACHINERY AND SOMETIMES MR SKIDELSKY IS INDIFFERENT TO THE QUESTION OF WHETHER KEYNES WAS CORRECT INDEED MR SKIDELSKY WORKS HIMSELF INTO A CREATIVE LATHER TRYING TO DESCRIBE THE GENERAL THEORY IN TERMS OTHER THAN ECONOMIC CALLING IT A WORK OF ART AND IMAGINATION AND IMPLYING THAT IT IS A SORT OF POETIC WORK ON MONEY THERE ARE TWO THINGS THAT MAKE THIS BOOK WORTH READING AND I AM GOING TO TELL YOU BOTH OF THEM NOW THEREBY SAVING YOU NEARLY 40 THE FIRST IS WHAT VIRGINIA WOOLF HAD TO SAY ABOUT KEYNES AND LYDIA IN 1923 ON THE MISTER WOOLF WRITES MAYNARD IS GROWN VERY GROSS & STOUT ESPECIALLY WHEN HE WRAPS HIS LEOPARD SPOTTED DRESSING GOWN TIGHT AROUND HIS KNEES AND STANDS IN FRONT OF THE FIRE HE HAS A QUEER SWOLLEN EELLIKE LOOK NOT VERY PLEASANT AND ON THE MISSUS LYDIA HAS THE SOUL OF A SQUIRREL ANYTHING NICER YOU CAN'T CONCEIVE SHE SITS BY THE HOUR POLISHING THE SIDES OF HER NOSE WITH HER FRONT PAWS ACTUALLY SHE HAD IT DOWN PERFECTLY MS LEE IS AN ECONOMIST SEE RELATED LETTER LETTERS TO THE EDITOR MUSING AND QUIRKS OF A GREAT MIND WSJ MARCH 7 1994 9402250053 YY94 MM03 9403070032 940214 IN THE LAB SECRETS OF THE HEART CAN IT BE BROKEN' BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE IT HAPPENS OFTEN ENOUGH AN ELDERLY WOMAN DIES AFTER A LONG ILLNESS LEAVING HER HUSBAND OF 50 YEARS DEPRESSED BUT NOT PHYSICALLY ILL YET WITHIN A FEW DAYS OR WEEKS THE HUSBAND COLLAPSES AND DIES WHATEVER THE DOCTOR SAYS HIS FRIENDS KNOW WHY HE DIED OF A BROKEN HEART IT'S AN OLD WIVES' TALE THAT A PERSON CAN DIE OF A BROKEN HEART SAYS STEPHEN M OPPENHEIMER A NEUROLOGIST HERE AT JOHNS HOPKINS UNIVERSITY MEDICAL SCHOOL BUT HE ADDS MANY OLD WIVES' TALES ARE TRUE THE POSSIBILITY OF DEATH FROM A BROKEN HEART FRIGHT OR EVEN BY A CURSE IS RAISED BY A THEORY OF SUDDEN DEATH THAT DR OPPENHEIMER IS PURSUING HE BELIEVES HE HAS PINPOINTED A PART OF THE BRAIN THAT LINKS THE HEART TO THOUGHT AND EMOTIONS IF HE IS CORRECT AND HE IS NOW IN THE MIDST OF HUMAN EXPERIMENTS TO FIND OUT DR OPPENHEIMER BELIEVES THE DISCOVERY WILL SHOW HOW UNRESOLVED MENTAL STRESS SUCH AS MIGHT BE CREATED BY THE DEATH OF A LOVED ONE CAN THROW THE HEART INTO AN IRREGULAR AND FATAL BEAT OF BROADER IMPORT DR OPPENHEIMER HOPES HIS RESEARCH WILL EXPLAIN WHY SOME STROKE PATIENTS DIE NOT OF ANOTHER BRAINDAMAGING STROKE BUT OF A HEART CONVULSION AND HE HOPES THE RESEARCH WILL HELP IDENTIFY FOR TREATMENT STROKE PATIENTS IN DANGER OF SUCH A CONVULSION DR OPPENHEIMER'S RESEARCH FOCUSES ON A PUZZLING FACET OF SUDDEN CARDIAC DEATH WITHIN AN HOUR OF AN UNEXPECTED COLLAPSE WHICH STRIKES AN ESTIMATED 250000 AMERICANS EVERY YEAR HE PULLS A 1940 MEDICALJOURNAL ARTICLE FROM HIS FILES DESCRIBING A TYPICAL EXAMPLE OF SUDDEN DEATH WRITTEN BY THE DOCTOR WHO ATTENDED A 60YEAROLD MAN HOSPITALIZED FOR PAINS IN THE ARMS AND LEGS FAILING VISION AND INCONTINENCE THE PATIENT WAS SITTING UPRIGHT IN BED TALKING TO HIS WIFE WHEN HE SUDDENLY BEGAN TO BREATHE SLOWLY NOISILY AND DEEPLY HIS DOCTOR LATER WROTE I SAW HIM A MATTER OF SECONDS AFTER HIS WIFE CALLED FOR AID OXYGEN AND ADRENALIN WERE QUICKLY ADMINISTERED WITHIN TWO OR THREE MINUTES THE PATIENT WAS CYANOTIC BLUE THEN ASHEN AND THE EXTREMITIES BECAME COLD AT NO TIME WERE HEART SOUNDS HEARD MOST PEOPLE WILL CONCLUDE HE DIED OF A MASSIVE HEART ATTACK BUT TODAY IT'S KNOWN THAT THE IMMEDIATE CAUSE OF DEATH IS THE HEART'S PLUNGE INTO AN EXTREMELY RAPID OR CHAOTIC BEAT CALLED VENTRICULAR FIBRILLATION LEADING TO CARDIAC ARREST WHEN THE HEART STOPS PUMPING AUTOPSIES OF SUDDENDEATH VICTIMS INVARIABLY REVEAL SOME KIND OF UNDERLYING HEART DISEASE MOST SHOW THAT THE FATAL FIBRILLATION WAS PROBABLY TRIGGERED BY A HEART ATTACK BUT IN MANY OTHER VICTIMS INCLUDING MANY WHO PREVIOUSLY HAD SUFFERED STROKES THE PATHOLOGIST FINDS UNDERLYING HEART DISEASE BUT NO SIGN OF A HEART ATTACK OR OTHER EVENT THAT COULD HAVE TRIGGERED FIBRILLATION DR OPPENHEIMER A 39YEAROLD ENGLISH EXPATRIATE FIRST ENCOUNTERED THE TERROR OF FIBRILLATION IN THE FIRST PATIENT HE EXAMINED AS A MEDICAL STUDENT IN LONDON THE PATIENT WENT INTO CARDIAC ARREST RIGHT IN FRONT OF ME HE RECALLS FORTUNATELY THE PATIENT WAS RESUSCITATED SOON AFTER THE YOUNG DOCTOR ENCOUNTERED THE MYSTERY THAT CURRENTLY OCCUPIES HIM I WAS LEARNING ELECTROCARDIOGRAM ECG ANALYSIS AND I COULDN'T FIGURE OUT WHAT SOME OF THE TRACINGS MEANT ON AN ECG OF A PATIENT WHO HAD SUFFERED AN ACUTE STROKE HE RECALLS IT TURNED OUT NO ONE ELSE KNEW WHAT THE TRACINGS MEANT EITHER OR WHAT CAUSED THEM THE ELECTROCARDIOGRAM OF COURSE IS A RECORD OF THE ELECTRICAL IMPULSES THE NERVOUS SYSTEM SENDS THROUGH THE HEART MUSCLE TO TRIGGER EACH BEAT SO IN 1988 AFTER MOVING TO ONTARIO I BEGAN SPENDING TIME IN THE LABORATORY TO SEE HOW DAMAGE IN THE BRAIN CAN CHANGE THE ELECTRICAL ACTIVITY OF THE HEART HE SAYS A LONGRUNNING SERIES OF EXPERIMENTS ON RATS REVEALED THAT A SMALL SPOT IN A SECTION OF THE BRAIN CALLED THE INSULAR CORTEX INFLUENCED THE HEARTBEAT IF THE INSULAR CORTEX WERE STIMULATED FOR HOURS AT A TIME THE HEART MUSCLE SUFFERED DAMAGE REMINISCENT OF THAT SEEN IN HUMANS WHO SUCCUMBED TO SUDDEN CARDIAC FIBRILLATION DR OPPENHEIMER BEGAN TO SPECULATE THAT DAMAGE TO THE INSULAR CORTEX COULD CHANGE THE BRAIN'S CONTROL OF THE HEART RENDERING A PATIENT WITH UNDERLYING HEART DISEASE MORE SUSCEPTIBLE TO FATAL FIBRILLATION HE ALSO WAS FASCINATED BY THE FACT THAT THE BRAIN'S INSULAR CORTEX IS WHERE THE AUTONOMIC NERVOUS SYSTEM WHICH CONTROLS SUCH AUTOMATIC FUNCTIONS AS BREATHING AND HEARTBEAT LINKS UP WITH THE MYSTERIOUS LIMBIC NERVOUS SYSTEM WHICH DEALS WITH ANGER FEAR PLEASURE SEXUAL AROUSAL SADNESS AND OTHER EMOTIONS HE WONDERED IF THE INSULAR CORTEX COULD BE THE KEY TO THE MANY REPORTS OF SUDDEN DEATHS OCCURRING IN PEOPLE WHO HAVE SUFFERED THE STRESS OF WHAT FOR THEM IS AN UNRESOLVABLE PSYCHOLOGICAL CONFLICT SUCH AS BEING UNABLE TO ACCEPT THE DEATH OF A LOVED ONE RESEARCHERS LONG HAVE KNOWN THAT SUCH STRESS FLOODS THE HEART WITH STIMULATING CHEMICALS BUT WHAT GOES ON IN THE BRAIN TO SET OFF THIS FLOOD HAS BEEN A COMPLETE MYSTERY PERHAPS DR OPPENHEIMER SPECULATED SOME MALFUNCTION IN THE INSULAR CORTEX LEADS TO AN INAPPROPRIATE CHEMICAL ASSAULT ON THE HEART WHICH BECOMES DANGEROUS IF INTENSE OR PROLONGED OR IF THE PERSON ALREADY HAS UNDERLYING HEART DISEASE TO FIND OUT IF HUMANS ARE ANYTHING LIKE THE RATS DR OPPENHEIMER AND HIS COLLEAGUES TURNED TO EPILEPSY PATIENTS WHO WERE UNDERGOING BRAIN SURGERY THAT EXPOSED THE INSULAR CORTEX THEY FOUND THAT STIMULATING THE INSULAR CORTEX WITH MILD ELECTRICAL PULSES WOULD CHANGE THE PATIENT'S HEART RATE AND BLOOD PRESSURE IN THE NEARLY THREE YEARS SINCE HE MOVED TO JOHNS HOPKINS DR OPPENHEIMER HAS BEEN COMPARING HEART FUNCTIONS OF HEALTHY PERSONS WITH THOSE WHO HAVE SUFFERED DAMAGE TO DIFFERENT PARTS OF THE INSULAR CORTEX ON A TYPICAL DAY A MIDDLEAGED MALE STROKE PATIENT LIES ON A TABLE IN ONE OF THE NEUROLOGY DEPARTMENT'S SPARTAN EXAMINING ROOMS AT THE JOHNS HOPKINS HOSPITAL'S ULTRAMODERN OUTPATIENT CLINIC HIS HEAD AND EXPOSED CHEST ARE DOTTED WITH SMALL CIRCULAR PATCHES HOLDING WIRES THAT LEAD TO A BANK OF ELECTRONIC INSTRUMENTS ON A CART THREE SMALL SCREENS DISPLAY THE JAGGED MOVING LINES THAT REPRESENT THE MAN'S ECG RESPIRATION RATE AND BLOOD PRESSURE THE REAL EXPERIMENT HOWEVER IS GOING ON INSIDE A COMPUTER SITTING ON THE CART IN THE HEALTHY PERSON DR OPPENHEIMER EXPLAINS THE SEEMINGLY REGULAR HEART RATE ACTUALLY IS HIGHLY VARIABLE ALMOST CHAOTIC THE COMPUTER PROGRAM DEVELOPED BY BIOMEDICAL ENGINEER WILL MARTIN MONITORS THE ECG AND BLOOD PRESSURE TRACINGS FOR PATTERNS MEANING IS THEN EXTRACTED FROM THE PATTERNS BY A COMPUTER MODEL DEVELOPED BY GRADUATE STUDENT GIL KEDEM USING THE NEW MATH OF CHAOS THEORY THE COMPUTER ANALYSES ARE INDEED UNCOVERING SOME OF THE INSULAR CORTEX'S SECRETS OF THE HEART BACK IN THE LABORATORY MR MARTIN FLASHES UPON THE BLUE OSCILLOSCOPE SCREEN THE COMPUTERPROCESSED TRACINGS MADE OF A HEALTHY VOLUNTEER'S HEART THE GREEN LINE SKETCHES OUT A JAGGED IRREGULAR MOUNTAIN RANGE THIS CHAOTIC HEART RATE STEMS FROM CONTROL OF THE HEART RAPIDLY SHIFTING BACK AND FORTH BETWEEN TWO BRANCHES OF THE NERVOUS SYSTEM ONE THAT TENDS TO SPEED UP THE HEART AND ONE THAN TENDS TO SLOW IT DOWN MR MARTIN THEN CALLS UP THE TRACINGS OF A 26YEAROLD WOMAN WHO HAD A BRAIN TUMOR REMOVED FROM THE LEFT SIDE OF THE INSULAR CORTEX THE PEAKS AND VALLEYS ARE FAR SMOOTHER AND MORE REGULAR THAN THOSE OF THE VOLUNTEER SHE HAS LOST ENERGY FROM THE PARASYMPATHETIC SYSTEM WHICH TENDS TO KEEP THE HEART RATE SLOW DR OPPENHEIMER SAYS THE OPPOSING SYMPATHETIC SYSTEM HAS TAKEN FULL CONTROL AND IS PRODUCING THE REGULAR RATE SUCH AN IMBALANCE IN CONTROL OF THE HEART IS FERTILE GROUND FOR AN IRREGULAR BEAT TO DEVELOP HE SAYS SUCH FINDINGS ARE BOLSTERING DR OPPENHEIMER'S BELIEF THAT THE INSULAR CORTEX IS THE KEY TO SUDDEN CARDIAC DEATHS INCLUDING CASES OF PEOPLE WHO DIE OF BROKEN HEARTS OR FRIGHT THE INSULAR CORTEX ALSO MAY HOLD THE KEY TO ANOTHER MYSTERY OF THE AGES VOODOO DEATH WHEN A PERSON DIES AFTER BEING CURSED VOODOO DEATH MAY BE DIFFICULT TO DO TO US WITH OUR WESTERN SKEPTICISM HE SAYS BUT IF YOU TRULY BELIEVE THAT YOU ARE GOING TO DIE BECAUSE SOMEONE TOLD YOU SO THEN THAT BECOMES A TREMENDOUS UNRESOLVABLE STRESS SEE RELATED LETTER LETTERS TO THE EDITOR HEARTBREAKS WSJ MARCH 7 1994 9402140162 YY94 MM03 9403070031 940211 SURGEONS BACK SINGLEPAYER' HEALTH REFORM GROUP'S STANCE IS A SURPRISE WHITE HOUSE HEARTENED CITING A COMMON GOAL BY HILARY STOUT AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE AMERICAN COLLEGE OF SURGEONS STUNNED THE MEDICAL AND HEALTHPOLICY WORLD BY ENDORSING A NATIONAL SINGLEPAYER HEALTH SYSTEM FOR THE US AT A CAPITOL HILL HEARING DAVID MURRAY CHAIRMAN OF THE COLLEGE'S BOARD OF REGENTS SAID HIS 60000MEMBER ASSOCIATION HAS DECIDED TO SUPPORT THE CONCEPT OF A SINGLEPAYER SYSTEM IN WHICH THE GOVERNMENT WOULD CONTROL MEDICAL FEES AND PAY MEDICAL BILLS WITH TAXPAYER FUNDS THAT A MAINSTREAM GROUP OF HIGHPRICED MEDICAL SPECIALISTS WOULD TAKE SUCH A POSITION HAS BEEN CONSIDERED ALMOST UNIMAGINABLE AKIN TO THE AMERICAN MEDICAL ASSOCIATION EMBRACING THE IDEA OF SOCIALIZED MEDICINE BUT DR MURRAY SAID A SINGLEPAYER SYSTEM IS ATTRACTIVE TO SURGEONS TODAY BECAUSE IT WOULD PRESERVE PATIENTS' RIGHTS TO CHOOSE THEIR PHYSICIANS REDUCE BUREAUCRACY MORE THAN ANY OTHER HEALTHREFORM PROPOSAL AND BEST FOSTER THE AUTONOMY OF PHYSICIANS TO MAKE THEIR OWN MEDICAL DECISIONS THE WHITE HOUSE DOESN'T SUPPORT A SINGLEPAYER SYSTEM BUT IT REACTED WITH ENCOURAGEMENT TO THE SURGEONS' STANCE PARTLY BECAUSE A SINGLEPAYER PLAN WOULD GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS WE'RE HEARTENED THAT THEY'VE SIGNED ON TO THE PRESIDENT'S GOAL OF UNIVERSAL COVERAGE SAID JEFF ELLER A WHITE HOUSE SPOKESMAN WHILE WE BELIEVE THE GUARANTEE SHOULD BE FOR PRIVATE INSURANCE WE SHARE MANY OF THE GOALS OF SINGLEPAYER ADVOCATES LIKE UNIVERSAL COVERAGE COST CONTROL AND ADMINISTRATIVE SIMPLIFICATION WE THINK THAT THIS ENDORSEMENT SIGNALS THAT AMERICA'S FRONTLINE PROVIDERS AGREE THAT WE HAVE A HEALTHCARE CRISIS AND THEY ARE LOOKING FOR A COMPREHENSIVE SOLUTION THE COLLEGE'S ENDORSEMENT CAME AFTER REP JIM MCDERMOTT D WASH THE LEADING SPONSOR OF A SINGLEPAYER BILL IN CONGRESS MADE A PRESENTATION TO THE COLLEGE OF SURGEON'S BOARD LAST WEEK I'LL TAKE THE SURGEONS OVER THE ROUNDTABLE ANYTIME MR MCDERMOTT SAID YESTERDAY HE WAS REFERRING TO THE BUSINESS ROUNDTABLE'S VOTE LAST WEEK TO SUPPORT A MARKETBASED HEALTHREFORM PROPOSAL SPONSORED BY REP JIM COOPER D TENN UNDER HEALTHCARE REFORM PROPOSALS OTHER THAN THE SINGLEPAYER PLAN HE ADDED ALL THE SURGEONS CAN SEE IS THE INSURANCE COMPANIES BEING GIVEN IMMENSE POWER TO INTERFERE WITH THE PHYSICIANPATIENT RELATIONSHIP BUT WHILE THE SURGEONS' GROUP SAID IT SUPPORTS THE SINGLEPAYER CONCEPT IT MADE CLEAR THAT IT ISN'T ENDORSING ANY SPECIFIC BILL INCLUDING MR MCDERMOTT'S MR MCDERMOTT WHO IS A PSYCHIATRIST HAS BEEN TRYING TO SELL HIS PLAN TO DOCTORS BY ARGUING THAT IT WOULD GIVE THEM MORE FREEDOM TO PRACTICE THEIR PROFESSION BECAUSE IT WOULD ELIMINATE INSURERS' OVERSIGHT AMONG GROUPS HE HAS VISITED IS THE AMA AND THE AMERICAN COLLEGE OF PHYSICIANS THE NATION'S SECONDLARGEST MEDICAL GROUP WHICH REPRESENTS SOME 75000 INTERNISTS IN THE WAKE OF THE SURGEONS' ANNOUNCEMENT YESTERDAY THE AMA THE LARGEST US DOCTORS' GROUP BLASTED THE SINGLEPAYER CONCEPT THE AMA'S PRESIDENTELECT ROBERT MCAFEE SAID A SINGLEPAYER SYSTEM WOULD TAKE MEDICAL DECISIONS OUT OF THE HANDS OF DOCTORS AND THEIR PATIENTS AND GIVE THAT POWER TO FACELESS GOVERNMENT BUREAUCRATS AND BOTTOMLINEMINDED MBAS DR MCAFEE A SURGEON HIMSELF WENT ON TO ASSERT THAT A SINGLEPAYER SYSTEM WOULD PUT A 10 CALCULATOR AHEAD OF A STETHOSCOPE IN DETERMINING PATIENT CARE FOR THE PAST YEAR THE 290000MEMBER AMA HAS STRUGGLED TO PUT TOGETHER A HEALTHREFORM AGENDA THAT MATCHES ITS MEMBERS' DIVERSE VIEWS THE SEARCH FOR UNITY HAS PROVEN INCREASINGLY DIFFICULT EVEN BEFORE THE SURGEONS' BREAK FROM AMA POLICY VARIOUS GROUPS REPRESENTING INTERNISTS AND FAMILYPRACTICE DOCTORS HAVE SUPPORTED MAJOR ELEMENTS OF THE CLINTON ADMINISTRATION'S REFORM PACKAGE THAT THE AMA DOESN'T LIKE IN AN ATTEMPT TO SHOW UNITY AMA OFFICIALS SAID THEY INTEND MONDAY TO ROLL OUT A LIST OF MEDICAL SOCIETIES THAT STILL ADHERE TO THE AMA'S MORE CONSERVATIVE STANCE ON REFORM THE GROUP HASN'T BACKED ANY PARTICULAR HEALTHCARE BILL BUT IT SUPPORTS IN GENERAL TERMS THE IDEA OF UNIVERSAL COVERAGE AND FREEMARKET COMPETITION DR MCAFEE PREDICTED THAT THE VAST MAJORITY OF THE LEADING 60 MEDICAL SOCIETIES WILL STAY IN THE AMA'S CAMP ONE OF THE REASONS THAT THE SURGEONS' DECISION SEEMS SO EXTRAORDINARY IS THAT SURGEONS SURELY WOULD LOSE INCOME IF THE GOVERNMENT SETS MEDICAL FEES ACCORDING TO THE AMA THE MEDIAN INCOME FOR SURGEONS IN THE US WAS 244600 IN 1992 SURGEONS IN CANADA WHICH HAS A SINGLEPAYER SYSTEM EARN CONSIDERABLY LESS BUT LINN MEYER THE COLLEGE'S DIRECTOR OF COMMUNICATIONS SAID THE GOVERNMENT ALREADY ESSENTIALLY REGULATES MEDICAL FEES THROUGH THE FEDERAL MEDICARE PROGRAM FOR THE ELDERLY MEDICARE REIMBURSEMENT RATES INFLUENCE PRIVATE INSURANCE RATES SINGLEPAYER SUPPORTERS WERE JUBILANT ABOUT THE SURGEONS' POSITION IT IS VERY SIGNIFICANT THAT THE MOST CONSERVATIVE BASTION OF MEDICINE THE SURGEONS HAVE TAKEN THIS GIANT STEP TOWARD SINGLEPAYER SUPPORT SAID QUENTIN YOUNG A GENERAL INTERNIST AND A PAST PRESIDENT OF PHYSICIANS FOR A NATIONAL HEALTH PROGRAM I BELIEVE IT'S A BREAKTHROUGH THAT WILL LEAD TO ITS VICTORY SEE RELATED LETTER LETTERS TO THE EDITOR CANADA'S HEALTH SYSTEM ON BRINK OF BANKRUPTCY WSJ MARCH 7 1994 9402110039 YY94 MM03 9403070030 940211 BANKING ON PUBLICITY MR MARKS GOT FLEET TO LEND BILLIONS SELFSTYLED URBAN TERRORIST' WON BATTLE ON REDLINING BUT NEEDS A NEW TSHIRT BY SUZANNE ALEXANDER RYAN AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL BOSTON WHEN FLEET FINANCIAL GROUP INC'S TROUBLES OVER COMMUNITYLENDING ISSUES WERE BEGINNING THE FEDERAL RESERVE BANK OF BOSTON ARRANGED A MEETING BETWEEN TOP FLEET OFFICIALS AND BRUCE MARKS THE BANK'S TOUGHEST CRITIC ALTHOUGH THE FED MAY HAVE WANTED TO CALM THE WATERS MR MARKS WASN'T INTERESTED THIS WAS HIS ULTIMATUM AT THE JUNE 1991 MEETING IF FLEET WOULD FUND HIS ORGANIZATION THE UNION NEIGHBORHOOD ASSISTANCE CORP WITH 20 MILLION MR MARKS WOULD GO AWAY OTHERWISE HE WOULD KEEP UP HIS CAMPAIGN OF BASHING FLEET IN THE NATIONAL MEDIA OPPOSING THE BANK'S PLANS WITH REGULATORS AND STAGING DEMONSTRATIONS WHEREVER ITS TOP EXECUTIVES APPEARED IN PUBLIC UP UNTIL NOW YOU HAVE DEALT WITH COMMUNITY ACTIVISTS MR MARKS SAID ACCORDING TO MINUTES OF THE MEETING WE ARE URBAN TERRORISTS FLEET REJECTED THE ULTIMATUM MAYBE IT SHOULD HAVE PAID UP YESTERDAY IT AGREED TO FUND MR MARKS'S GROUP NOT WITH 20 MILLION BUT WITH 140 MILLION AS PART OF AN 8 BILLION LOAN POOL AIMED AT INNERCITY LOWINCOME AND SMALLBUSINESS BORROWERS MR MARKS APPEARED WITH HIS ADVERSARY FLEET CHAIRMAN TERRENCE MURRAY AND A DOZEN SENATORS AND REPRESENTATIVES IN THE GLARE OF TELEVISION LIGHTS IN THE US CAPITOL IN A TYPICAL THEATRICAL GESTURE MR MARKS PRODUCED A GIANT PAPIERMACHE HATCHET AND DROPPED IT INTO A COFFIN SIGNIFYING AN END TO HIS EXTRAORDINARY FOURYEAR CAMPAIGN AGAINST FLEET MR MARKS IS ONE OF A NEW BREED OF COMMUNITY ACTIVISTS WHO ARE EXPERTLY USING FEDERAL COMMUNITYREINVESTMENT AND FAIRLENDING LAWS TO HOLD BANKS' FEET TO THE FIRE ON THEIR OBLIGATIONS TO THE POOR BUT MR MARKS'S BAREKNUCKLE TACTICS HAVE SOMETIMES SEEMED TO FLEET OFFICIALS TO BE MOTIVATED MORE BY SELFPROMOTION AND THE ADVANCE OF HIS SMALL ORGANIZATION THAN BY ALTRUISM YESTERDAY MR MARKS SHOOK HANDS WITH MR MURRAY AND LAUDED HIM FOR HIS BOLD AND INNOVATIVE INNERCITY LENDING PROGRAM THE LAST TIME MR MARKS WAS IN THE CAPITOL HE WORE A TSHIRT WITH THE WORD WANTED ABOVE A PICTURE OF MR MURRAY AND BELOW LOANSHARK HE HAD COME TO WASHINGTON WITH SOME 400 MEMBERS OF THE HOTEL WORKERS' UNION TO CRASH A SENATE BANKING COMMITTEE HEARING FILLING THE HEARING ROOM AND SINGING GOSPEL SONGS BEFORE THE MEETING BEGAN THAT WAS JUST ONE OF A STRING OF OUTRAGEOUS STUNTS MR MARKS STAGED TO EMBARRASS FLEET ALWAYS FLANKED BY MILITANT UNION MEMBERS HE HAS TURNED UP AT ANALYSTS' MEETINGS PICKETED PRESS CONFERENCES AND DISRUPTED SPEECHES TWO YEARS AGO TRYING TO HEAD HIM OFF FROM SPEAKING AT THE BANK'S ANNUAL MEETING FLEET ATTORNEYS SCHEDULED A DEPOSITION OF MR MARKS AT THE SAME TIME AS THE MEETING ASKED ABOUT THE TACTIC A FLEET SPOKESMAN SAID THAT WE JUST FIGURED ANYONE WITH AN EGO THAT BIG COULD EASILY SHOW UP IN TWO PLACES AT ONCE MR MARKS IGNORED THE DEPOSITION AND TRIED TO GO TO THE MEETING ANYWAY BUT WAS BARRED BY FLEET SECURITY FLEET'S NEW LENDING INITIATIVE MARKS VICTORY IN A FOURYEAR CRUSADE FOR THE SLIGHT 38YEAROLD MR MARKS WHO GREW UP IN COMFORTABLE SCARSDALE NY AND GREENWICH CONN ARMED WITH THE IDEALISM OF THE 1970S AND A MASTER'S IN BUSINESS ADMINISTRATION FROM NEW YORK UNIVERSITY HE WENT TO WORK AT THE NEW YORK FEDERAL RESERVE WHERE HIS JOB INCLUDED EVALUATING BANK APPLICATIONS FOR MERGERS AND ACQUISITIONS BUT HE SAYS HE WAS CRITICIZED BY SUPERIORS FOR RECOMMENDING THAT SOME PROPOSALS BE TURNED DOWN ON GROUNDS THAT THE BANKS HADN'T COMPLIED WITH FEDERAL COMMUNITY REINVESTMENT ACT RULES I WASN'T SEEN AS A TEAM PLAYER SAYS MR MARKS HE LEFT THAT JOB CONVINCED THAT BANKS WEREN'T LIVING UP TO THEIR OBLIGATIONS TO LEND IN THE INNER CITY MR MARKS SOON FOUND HIMSELF IN BOSTON'S GRITTY SOUTH END TRYING TO CONVINCE DOMENIC BOZZOTTO TOUGHTALKING PRESIDENT OF THE HOTEL WORKERS' UNION LOCAL 26 THAT THE UNION SHOULD HELP ITS MOSTLY LOWPAID IMMIGRANT MEMBERSHIP BUY THEIR HOMES I THREW HIM OUT OF MY OFFICE MR BOZZOTTO SAYS HE WAS A YUPPIE IN A SUIT HE LOOKED LIKE THE YOUNG MBAS WHO SIT ON THE WRONG SIDE OF THE CONTRACTBARGAINING TABLE SOMEONE WHO WANTED TO GET A LITTLE TASTE OF URBAN COMMUNITY SERVICE TO ROUND OUT HIS RESUME MR MARKS WOULDN'T GO AWAY HE PLUNGED INTO UNION WORK PRESSING MR BOZZOTTO TO STRESS HOUSING IN CONTRACT NEGOTIATIONS IN 1988 THE UNION WON A LANDMARK CONTRACT WITH BOSTON'S BOOMING HOTEL INDUSTRY THAT CREATED THE UNION NEIGHBORHOOD ASSISTANCE CORP A NONPROFIT AFFILIATE THAT DISBURSED SMALL NOINTEREST LOANS TO MEMBERS TO HELP THEM MAKE DOWN PAYMENTS ON HOMES MR MARKS NEXT TURNED HIS ATTENTION TO REDLINING BY BANKS IN BOSTON'S ROXBURY DORCHESTER AND SOUTH END NEIGHBORHOODS HE FOUND THAT WHILE MAJOR BANKS HAD LITTLE PRESENCE IN THOSE AREAS THEY QUIETLY BACKED SMALL SECONDMORTGAGE COMPANIES THAT LENT MONEY AT SKYHIGH RATES WHILE FLEET WASN'T THE WORST OFFENDER MR MARKS ATTACKED THE PROVIDENCE RI BANK BECAUSE IT WAS ABOUT TO BUY THE FAILED BANK OF NEW ENGLAND PUTTING IT IN THE HEADLINES AND UNDER REGULATORY SCRUTINY MR MARKS FOUND VICTIMS OF SECONDMORTGAGE COMPANIES AND STEERED THEM TO NEWSPAPER AND TELEVISION REPORTERS THEY RAN HEARTRENDING STORIES ABOUT PEOPLE WHO HAD LOST THEIR HOMES BECAUSE THE BANKS BACKED UNSCRUPULOUS SECONDMORTGAGE LENDERS WITH USURIOUS RATES MR MARKS TURNED HIS ATTENTION TO GEORGIA WHERE FLEET'S CONSUMERFINANCE SUBSIDIARY IN ATLANTA WAS DEEPLY INVOLVED IN SECONDMORTGAGE LENDING IN THE FACE OF CHARGES BY THE GEORGIA ATTORNEY GENERAL OF UNFAIR LENDING THE SUBSIDIARY RECENTLY AGREED TO ABOUT 105 MILLION OF CONCESSIONS INCLUDING INTERESTRATE REDUCTIONS AND NEW LOANS A GEORGIA CLASSACTION SUIT WITH 14000 PLAINTIFFS ALLEGING PREDATORY LENDING IS SCHEDULED FOR TRIAL LATER THIS MONTH LAST JUNE FLEET WON A RELATED CASE IN GEORGIA'S SUPREME COURT BUT THE COURT BLASTED FLEET ANYWAY SAYING ITS LOAN PRACTICES ARE WIDELY VIEWED AS EXORBITANT UNETHICAL AND PERHAPS EVEN IMMORAL FLEET TOOK THE EXTRAORDINARY STEP OF ATTACKING MR MARKS IN ITS 1992 ANNUAL REPORT ACTIVISTS IN BOSTON LOOKING TO ADVANCE THEIR OWN NARROW AGENDA MADE ACCUSATIONS ABOUT OUR LENDING PRACTICES THE REPORT SAID ADDING THAT ONE ACTIVIST HAD PERSUADED THE CBS NEWS SHOW 60 MINUTES TO RUN A CRITICAL STORY FLEET SAYS THAT IN THE FACE OF ALL THE CRITICISM IT REVIEWED ALL OF ITS LENDING PRACTICES AND TO AVOID EVEN THE PERCEPTION OF WRONGDOING HALTED THE PURCHASE OF SUCH LOANS FROM THIRD PARTIES FOR FLEET'S MR MURRAY THE LAST STRAW MAY HAVE BEEN WHEN MR MARKS'S SHOCK TROOPS SHOWED UP UNINVITED AT A BOSTON BUSINESSCLUB BREAKFAST LAST OCTOBER WHERE MR MURRAY WAS SPEAKING UNION MEMBERS SAT AT EVERY TABLE AND NOISILY STOOD UP TO PASS OUT PROTEST FLYERS EXASPERATED MR MURRAY AGREED TO A MEETING THREE DAYS LATER MESSRS MARKS AND MURRAY MET FOR THE FIRST TIME FOR A THREEHOUR TALK I CAME AWAY FEELING HE TOOK OUR ISSUES SERIOUSLY MR MARKS SAYS BY MIDDECEMBER MR MARKS'S GROUP HAD DRAFTED A WRITTEN AGREEMENT FLEET COULD HAVE GONE FOR A MEDIA MOMENT A QUICKFIX FOR THE TELEVISION CAMERAS INSTEAD WHAT THEY'VE PUT TOGETHER IS A SHINING EXAMPLE FOR THE ENTIRE INDUSTRY MR MARKS SAYS THE AGREEMENT ANNOUNCED YESTERDAY INCLUDES 72 BILLION TO BE LENT TO NEW LOW AND MODERATEINCOME BORROWERS UNDER EXISTING FEDERAL PROGRAMS IT ALSO INCLUDES 800 MILLION IN NEW PROGRAMS AIMED AT INNERCITY BORROWERS INCLUDING THE 140 MILLION TO BE HANDLED BY MR MARKS'S ORGANIZATION WHICH WILL HIRE 12 NEW STAFFERS AND BEGIN FINDING LOAN APPLICANTS FOR FLEET IN MASSACHUSETTS NEW YORK NEW JERSEY RHODE ISLAND AND WASHINGTON DC ONE FLEET INSIDER SAYS SOME PEOPLE IN THE BANK THOUGHT IT SHOULD HAVE MADE PEACE WITH MR MARKS EARLIER BUT WERE REPULSED BY HIS TACTICS FLEET DID NOTHING THAT WASN'T COMMON PRACTICE IN THE CONSUMERFINANCE BUSINESS HE SAYS BUT WE TOOK THE HEAT BY THE TIME A DEAL WAS STRUCK THE DAMAGE HAD BEEN DONE TO FLEET'S REPUTATION AND THE BANK AGREED TO LEND MR MARKS'S GROUP SEVEN TIMES WHAT HE SOUGHT IN 1991 THERE'S NO WAY THIS WOULD HAVE HAPPENED WITHOUT BRUCE MARKS SAYS MR BOZZOTTO THE UNION CHIEF YOU CAN'T GET SOMEONE'S ATTENTION UNLESS YOU'RE IN THEIR FACE THIS WAS A DAVIDANDGOLIATH SITUATION AND DAVID WON THIS ONE ANGELA SHAH IN WASHINGTON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR A SOCIALIST IDEALISM THAT'S BLIND TO REALITY WSJ MARCH 7 1994 9402110065 YY94 MM03 9403070107 940126 RAY OF HOPE AMID AFRICA'S AGONY ONE NATION GHANA SHOWS MODEST GAINS YET PROGRESS IS VERY SLOW PERHAPS IN PART BECAUSE LITERACY RATE STAYS LOW A CONTRAST WITH MALAYSIA BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL DANOHIRA GHANA ALONG THE REDDIRT ROAD RUNNING BESIDE THIS MUDHUT VILLAGE THE MAIN ECONOMIC INDICATOR IS THE FREQUENCY OF MAMMY TRUCKS THAT RATTLE BY TO CARRY LOCAL FARMERS AND THEIR PRODUCE TO THE NEARBY TOWN OF KASUA AS CHARLE AYIETEY READS THAT INDICATOR THINGS AREN'T GOING WELL WE USED TO FIND A BIG TRUCK ONCE A DAY THE SLIGHT MIDDLEAGED FARMER SAYS BUT A STRAPPED GOVERNMENT HAS CUT BACK ON MAINTENANCE AND THIS ROAD LIKE THOUSANDS OF OTHERS HAS BECOME AN AXLEBENDING ROLLER COASTER OF GULLETS AND DITCHES AS A RESULT THE TRUCKS ONLY COME ONCE A WEEK TODAY IS MONDAY HE SAYS THEY'LL COME TODAY HE WILL RIDE TO TOWN WITH HIS TOMATOES AND CASSAVAS SIT ALL NIGHT WITH HIS PRODUCE BESIDE THE ROAD AND SELL IT THE NEXT DAY THIS IS THE FOOTPATH ECONOMY OF RURAL GHANA A NATION THAT DEVELOPMENT SPECIALISTS SAY IS THE NEAREST THING TO AN ECONOMIC SUCCESS STORY IN BLACK AFRICA DURING THE PAST DECADE MARKETBASED ECONOMIC REFORMS HAVE BROUGHT REMARKABLE TRANSFORMATIONS IN EVERY OTHER REGION FROM CHILE TO THE CZECH REPUBLIC TO CHINA COUNTRIES HAVE USED ADAM SMITH'S FORMULAS TO REVIVE ECONOMIES PREVIOUSLY RENDERED MORIBUND BY GOVERNMENT CONTROLS BUT THIS ECONOMIC REVOLUTION AND ITS PAYOFF OF HIGHER LIVING STANDARDS HAVE LARGELY ELUDED SUBSAHARAN AFRICA WHERE THE NUMBER OF POOR PEOPLE IS EXPECTED TO INCREASE IN THE NEXT DECADE AT BEST THERE IS GHANA ON THE SOUTHERN COAST OF THE BULGE OF WEST AFRICA THIS COUNTRY HAS TRIED FOR 10 YEARS IT HAS WON PRAISE AND HARD CASH BY GENERALLY FOLLOWING THE DICTATES OF THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK EXCHANGE RATES HAVE BEEN REALIGNED TRIPLEDIGIT INFLATION HAS BEEN TAMED TO ROUGHLY 20 A YEAR AND SIGNS OF PROGRESS HAVE CROPPED UP A FIVESTAR HOTEL STANDS OUTSIDE ACCRA THE CAPITAL AND A FEW INTERNATIONAL BUSINESSPEOPLE CHAT ON CORDLESS TELEPHONES ABOUT JOINT VENTURES AND PRIVATIZATIONS FINANCE MINISTER KWESI BOTCHWEY EVEN HOLDS OUT THE PROSPECT THAT GHANA WHICH IN 1957 BECAME THE FIRST BLACK AFRICAN STATE TO WIN ITS INDEPENDENCE FROM A EUROPEAN COUNTRY WILL ALSO PIONEER THE FIRST ASIANSTYLE ECONOMIC MIRACLE ON THE CONTINENT BUT GHANA'S ECONOMIC ASCENT IS AGONIZINGLY SLOW THE AVERAGE CITIZEN SCRAPES BY ON THE EQUIVALENT OF ABOUT 420 A YEAR THE RURAL POPULATION STRUGGLES NOT ONLY WITH BAD ROADS BUT ALSO WITH UNDERFUNDED SCHOOLS AND MALARIA ADJUSTED FOR GALLOPING POPULATION GROWTH THE GHANAIAN ECONOMY EXPANDS 2 PER PERSON EACH YEAR A BARELY NOTICEABLE INCREASE AT THE BOTTOM RUNGS OF SOCIETY AND GHANAIANS WONDER WHY THEY UNLIKE MANY DEVELOPING NATIONS CAN'T REAP THE FRUITS OF ECONOMIC SUCCESS AFRICA HAS BEEN A TERRIBLE STORY SAYS SIR WILLIAM RYRIE WHO RECENTLY RETIRED AS HEAD OF THE INTERNATIONAL FINANCE CORP THE PRIVATESECTOR ARM OF THE WORLD BANK AGAINST THIS DISCOURAGING BACKDROP ECONOMISTS HAVE INVESTED CONSIDERABLE HOPE THAT GHANA'S HALTING PROGRESS CAN BECOME A CLEAR SUCCESS SHOWING THE WAY TO OTHER STAGNANT OR UNSTABLE AFRICAN STATES GHANA'S EXPERIENCE STANDS IN CONTRAST TO THAT OF MALAYSIA WHICH ALSO BECAME INDEPENDENT FROM BRITAIN IN 1957 BOTH FORMER COLONIES BEGAN WITH BRITISH INSTITUTIONS A RICH MIX OF RESOURCES FOREIGNCURRENCY RESERVES AND ANNUAL PERCAPITA INCOME OF ABOUT 750 BUT 3 1/2 DECADES LATER MALAYSIA IS FAR AHEAD ITS AVERAGE CITIZEN EARNS ABOUT 2500 A YEAR NEARLY SIX TIMES THE AMOUNT IN GHANA FOREIGN INVESTORS ARE RARE IN GHANA BUT ARE POURING INTO MALAYSIA THE REASONS FOR THIS DIVERGENCE IN DEVELOPMENT ARE COMPLEX BUT THEY CLEARLY GO BEYOND THE REACH OF THE IMF'S MACROECONOMIC FIXES ONE STARK DIFFERENCE BETWEEN GHANA AND MALAYSIA LIES IN THEIR APPROACHES TO INVESTMENT IN EDUCATION AND HEALTH GHANA HAS USED ITS RESOURCES TO RUN THREE PRESTIGIOUS UNIVERSITIES AND PRODUCE A TALENTED ELITE BUT MALAYSIA LIKE SOUTH KOREA BEFORE IT POURED ITS EARLY MONEY INTO PRIMARY EDUCATION TODAY 80 OF MALAYSIA'S ADULT POPULATION CAN READ AND WRITE WHILE GHANA HAS AN OFFICIAL LITERACY RATE OF 60 AND LOCAL OFFICIALS PUT THE FUNCTIONAL LITERACY RATE CLOSER TO 40 ILLITERACY KEEPS FARMERS FROM LEARNING NEW GROWING METHODS AND A LARGER SLICE OF THE POPULATION FROM WORKING IN EXPORTORIENTED MANUFACTURING NO COUNTRY HAS BEEN SUCCESSFUL ECONOMICALLY WITH LESS THAN 50 LITERACY SAYS KATHERINE MARSHALL A WORLD BANK AFRICA SPECIALIST WHOSE GRANDFATHER GEORGE C MARSHALL MOUNTED THE RAPID RECONSTRUCTION OF POSTWAR EUROPE IN MATSEKOPE A GHANAIAN HAMLET THAT MAINLY PRODUCES SACKS OF SALT FROM A LAGOON THE PRIMARY SCHOOL CONSISTS OF TWO DILAPIDATED SHEDS WITH GAPING HOLES IN THE ROOFS NOT ALL THE CLASSROOMS HAVE BLACKBOARDS ENOUGH DESKS OR EVEN TEACHERS IN ONE ROOM DAVID APPRONTI A STERNFACED NINEYEAROLD LEADS 47 CHILDREN IN SONG OUTSIDE UNDER A SHADE TREE JAMES OSEI KOFI A VISITING OFFICIAL FROM THE EDUCATION MINISTRY TELLS THE TEACHERS NOT TO EXPECT MUCH HELP FROM THE CAPITAL HIS WARNING THAT TIMES ARE HARD YOU'VE GOT TO ORGANIZE YOURSELVES ELICITS SNICKERS ONE TEACHER ASKS FOR A SMALL LIBRARY AT THE SCHOOL WHICH SERVES 264 CHILDREN YOU'RE JUST DREAMING MR KOFI RESPONDS ANOTHER TEACHER ASKS ABOUT PROSPECTS FOR HIGHER PAY NOW RUNNING ABOUT 600 A YEAR MR KOFI SHAKES HIS HEAD IN LIEU OF A RAISE HE SUGGESTS THE GOVERNMENT MIGHT DECLARE A NATIONAL TEACHERS' DAY AND AWARD BICYCLES TO ESPECIALLY DEDICATED ONES IT MUST BE CASH THE TEACHER RESPONDS A TEST OF 12000 STUDENTS HERE BY THE US AGENCY FOR INTERNATIONAL DEVELOPMENT LAST YEAR FOUND THAT FEWER THAN 2 READ AT LEVELS THE AID OFFICIALS HAD EXPECTED AND THAT HALF COULDN'T READ AT ALL DESPITE 225 MILLION THAT INDUSTRIALWORLD DONORS POURED INTO GHANA'S EDUCATION FROM 1988 THROUGH 1993 AND OF 64000 PRIMARYSCHOOL TEACHERS HALF HADN'T HAD ANY TEACHER TRAINING ABOUT 16000 HADN'T FINISHED HIGH SCHOOL SOME AN AID OFFICIAL ADDS CAN'T EVEN WRITE THEIR NAMES GHANA AND MALAYSIA ALSO PROVIDE A TELLING CONTRAST IN HEALTH CARE WHILE GHANA BUILT SEVERAL URBAN HOSPITALS MALAYSIA SET UP SMALL CLINICS TO DELIVER BASIC CARE AND IMMUNIZATIONS GHANA HAS ONE PHYSICIAN FOR EVERY 22970 CITIZENS MALAYSIA HAS ONE FOR EVERY 2700 A CHILD IN GHANA CAN EXPECT TO LIVE TO AGE 55 A MALAYSIAN'S LIFE EXPECTANCY IS 71 YEARS AT TIMES THE SHEER BURDEN OF CULTURE SEEMS TO IMPEDE CREATION OF A THRIVING PRIVATE SECTOR GHANAIANS ARE INVETERATE TRADERS BUT HESITANT PRODUCERS IN ACCRA'S SHANTYTOWNS THE POOR EKE OUT A LIVING SELLING EVERYTHING FROM HUBCAPS TO HAIRDOS EVERY TRAFFIC LIGHT IS THRONGED BY HAWKERS OF A CURIOUS ARRAY OF CHINESEMADE PRODUCTS PLASTIC COAT HANGERS DOG COLLARS IMITATION CHRISTIAN DIOR DEODORANT AND GLUE AT TOLL STATIONS JUST OUTSIDE THE CAPITAL LITTLE GIRLS SELL PUPPIES AND PLASTIC BAGS OF COOL WATER BUT APART FROM THE TRADITIONAL EXPORTS OF GOLD AND COCOA GHANAIANS DON'T PRODUCE MUCH AND DESPITE A DECADE OF ECONOMIC LIBERALIZATION UNDER DICTATORTURNEDPRESIDENT JERRY RAWLINGS THE HABIT OF STATE CONTROL CLEARLY LINGERS ON FROM HIS EARLY ALLEGIANCE TO SOCIALIST LEADERS IN OTHER NATIONS AND TO SOCIALISM ITSELF EVEN NOW RIGID STATE CONTROL SHOWS UP ON DOZENS OF HALFBUILT STRUCTURES WITH THE BUREAUCRATIC COMMAND EMBLAZONED IN RED PAINT STOP WORK PRODUCE PERMIT STATUTES IMPOSE STIFF PENALTIES ON ANYONE CARRYING OUT ANY ACT WITH INTENT TO SABOTAGE THE ECONOMY A VAGUE PROHIBITION THAT BUSINESSPEOPLE SAY LETS THE GOVERNMENT HARASS THEM CYNTHIA AGYEKUM WHO FOUNDED CESSA LTD A TEXTILE CONCERN IS A TESTAMENT TO BOTH THE ENERGY AND THE DIFFICULTIES OF THE COUNTRY'S BUSINESSPEOPLE TAUGHT AS A CHILD TO SEW SHE BEGAN STITCHING TOGETHER ACCESSORIES SUCH AS BELTS AND SATCHELS FROM KENTE CLOTH AND DYED FABRIC AFTER SELLING HER WARES THROUGH TRADE SHOWS AND OCCASIONAL CONTACTS WITH US RETAILERS MS AGYEKUM GOT A BREAK ADRIAN LONG SENIOR VICE PRESIDENT AT PIER 1 IMPORTS INC SHOWED UP EARLY LAST YEAR AND WAS SO IMPRESSED WITH HER DESIGNS AND WORKMANSHIP THAT HE ORDERED 17000 PIECES THE MOTHER OF THREE YOUNG CHILDREN MANAGED TO SET UP A LEASE FOR A DEFUNCT BOARDEDUP TEXTILE PLANT ITS SEWING MACHINES COULD BE REFURBISHED AND MANY OF ITS FORMER WORKERS WHO HADN'T HELD REGULAR JOBS SINCE IT CLOSED 12 YEARS EARLIER WERE EAGER TO SIGN ON BUT MS AGYEKUM NEEDED MONEY TO GET STARTED A GOVERNMENTESTABLISHED EXPORT FINANCE COMPANY TOLD HER IT HAD NO FUNDS TO LEND GHANAIAN BANKS STILL UNDER STATE CONTROL WEREN'T USED TO FINANCING LOCAL BUSINESSES BESIDES PIER 1'S ORDER MEANT NOTHING TO THEM THEY HAD NEVER HEARD OF THE BIG RETAILER INFORMAL MONEYLENDERS DEMANDED TERMS SHE CONSIDERED CONFISCATORY 5 INTEREST EVERY TWO WEEKS ABOUT TO GIVE UP SHE MET WITH LENDERS FROM CONTINENTAL ACCEPTANCES LTD A GHANAIAN MERCHANT BANK THAT WAS BEGINNING TO OPEN UP TO NEW BUSINESSES AFTER AN INVESTMENT BY THE INTERNATIONAL FINANCE CORP AFTER MUCH NEGOTIATION CONTINENTAL PROVIDED THE FINANCING FOR MS AGYEKUM TO REOPEN THE PLANT AND HIRE WORKERS THEN A POWER BLACKOUT LEFT THE AREA WITHOUT ELECTRICITY FOR FOUR DAYS RATHER THAN RISK MISSING A SHIPMENT DATE MS AGYEKUM ADDED A SECOND SHIFT AS SOON AS ELECTRICITY WAS RESTORED IT'S AN UPHILL STRUGGLE SHE SAYS BUT GHANAIANS ARE USED TO FIGHTING UPHILL STRUGGLES PIER 1'S MR LONG SAYS THAT WHILE MS AGYEKUM SURMOUNTED THE PROBLEMS OTHER GHANAIAN ARTISANS WITH WHOM HE LEFT ORDERS BACKED OUT BECAUSE OF THE LACK OF FINANCING THE BOTTOM LINE IS EVERYBODY'S TRYING BUT WE WON'T GET ALL WE EXPECTED HE SAYS HOWEVER THERE ARE OTHER SIGNS OF HOPE JUST BEYOND FOTOBI A VILLAGE OF MUD HUTS MEANDERING GOATS AND NAKED CHILDREN DANIEL SAFO SURVEYS HIS PINEAPPLE PLANTATION ABOUT 60 WORKERS SCRAMBLE UP AND DOWN HILLY ROWS OF THE PLANTS WHICH STRETCH TOWARD THE HORIZON AND CUT RIPE PINEAPPLES WITH MACHETES THEN THEY PUT THE FRUIT INTO TUBS THAT VILLAGE WOMEN CARRY ON THEIR HEADS TO A TRUCK REVVING ITS ENGINE FOR A LATEAFTERNOON RUN TO ACCRA'S AIRPORT THE NEXT MORNING THE PINEAPPLES CONSIDERED EXCEPTIONALLY TENDER AND SWEET WILL BE UNLOADED IN ZURICH THIS GUY COULD BE SITTING ON A GOLD MINE SAYS DAVID LEGRICE A WORLD BANK CONSULTANT ADVISING MR SAFO'S COMPANY COMBINED FARMERS LTD THE WORKERS EARN 1 A DAY THE GROWING CYCLE IS HALF THAT OF FARMS FARTHER FROM THE EQUATOR AND FEW PESTICIDES AND FERTILIZERS ARE NEEDED IF YOU LOOK AT THE REST OF AFRICA OTHER THAN SOUTH AFRICA THIS COUNTRY'S GOT THE BEST POTENTIAL HE ADDS ANOTHER NEW EXPORT IS SHRIMP OVER COCKTAILS AT A WESTERN DIPLOMAT'S HOME IN ACCRA AN AQUATIC CONSULTANT EXPLAINS TO LOCAL BUSINESS LEADERS AND AN AMERICAN VENTURE CAPITALIST HOW TO SPEED UP A FEMALE SHRIMP'S REPRODUCTIVE CYCLE AND WHY THE ESTUARY SOUTH OF THE VOLTA RIVER DAM IS IDEAL FOR SHRIMP FARMING BEN ADDAI AN ASHANTI TRIBAL LEADER WHO OWNS A SHRIMPING FLEET SAYS HE MAY EXPAND INTO SHRIMP FARMING AS WELL OVERALL HE SAYS IF WE'RE GOING TO MAKE IT IT'S GOING TO BE ON EXPORT PERFORMANCE AND THOUGH BUSINESS DEVELOPMENT IS SLOW THE AVERAGE GHANAIAN IS BETTER OFF THAN 10 YEARS AGO WHEN AFTER TWO DECADES OF COUPS CORRUPTION AND DISASTROUS ECONOMIC CONTROLS THE ECONOMY IMPLODED INFLATION SURGED TO 123 BASIC GOVERNMENT SERVICES BROKE DOWN AND FUEL AND FOOD SHORTAGES BECAME SO ACUTE THAT EVEN CIVIL SERVANTS WENT HUNGRY MOREOVER GHANA'S CURRENT PROBLEMS PALE NEXT TO THOSE IN COUNTRIES LIKE SOMALIA BURUNDI OR ANGOLA THAT ARE PLAGUED WITH FACTIONAL KILLING AND WIDESPREAD STARVATION OPTIMISTS BELIEVE THAT SUBSAHARAN ECONOMIES MAY EVENTUALLY PICK UP THEY NOTE THAT THE REGION'S ECONOMIC PROFILE TODAY IS REMARKABLY SIMILAR TO THAT OF INDONESIA THAILAND AND MALAYSIA IN 1965 IN 25 YEARS THEY SAY AFRICA MAY BOAST A FEW ECONOMIC MIRACLES FOR GHANA SUSPENDED SOMEWHERE BETWEEN THE AFRICAN ECONOMIC NIGHTMARE AND A HOPEDFOR ASIANSTYLE PROSPERITY IT IS A LONG WAIT FOR THE AVERAGE GHANAIAN IT'S BEEN A HARDSHIP SAYS 74YEAROLD ESTHER OCLOO WHOSE FOODPROCESSING COMPANY NKULENU INDUSTRIES LTD IS ONE OF A HANDFUL OF PRIVATE CONCERNS THAT HAVE SURVIVED SINCE PREINDEPENDENCE DAYS THE ONLY PRAYER AND HOPE IS THAT IT'S SUSTAINABLE BECAUSE IF IT'S NOT THE VERY SOULS OF THE PEOPLE WILL BE CRYING SEE RELATED LETTER LETTERS TO THE EDITOR MILLIONS MUST PERISH BECAUSE OF DDT BAN WSJ MARCH 7 1994 9401260161 YY94 MM03 9403040208 940304 WHO'S NEWS AVERY DENNISON CORP AVERY DENNISON CORP PASADENA CALIF THOMAS E MILLER WAS NAMED VICE PRESIDENT AND CONTROLLER SUCCEEDING GARY A MCCUE 57 YEARS OLD WHO RECENTLY BECAME VICE PRESIDENT CORPORATE VALUE PLANNING AND DEVELOPMENT MR MILLER 46 WAS A VICE PRESIDENT AND ASSISTANT CONTROLLER OF AVERY WHICH MAKES PRESSURESENSITIVE ADHESIVES AND MATERIALS IDENTIFICATION AND RETAIL SYSTEMS OFFICE PRODUCTS AND SPECIALTY CHEMICALS JAMES E SHAW 62 WAS NAMED TO THE NEWLY CREATED POST OF GROUP VICE PRESIDENT AUTOMOTIVE AND GRAPHIC SYSTEMS HE HAD BEEN VICE PRESIDENT OF AUTOMOTIVE AND GRAPHICS SYSTEMS 9403040207 940304 LETTERS TO THE EDITOR CIVILRIGHTS NOMINEE IS NO RADICAL PRESIDENT CLINTON HAS CHOSEN WISELY IN NOMINATING DEVAL PATRICK TO THE NATION'S TOP CIVILRIGHTS POSITION IT WILL BE HARD FOR THE OPPONENTS OF EFFECTIVE CIVILRIGHTS ENFORCEMENT TO DEFEAT MR PATRICK BUT IT IS CLEAR THEY ARE GOING TO TRY ONCE AGAIN USING INFLAMMATORY AND MISLEADING RHETORIC CLINT BOLICK IN HIS FEB 2 EDITORIALPAGE ARTICLE CIVILRIGHTS NOMINEE QUOTA CLONE USED THE PHRASE QUOTA QUEEN TO DESCRIBE THE PREVIOUS NOMINEE PROF LANI GUINIER AND ENOUGH PEOPLE WERE PREPARED TO BELIEVE MISTAKENLY IN MY VIEW THAT SHE FAVORED QUOTAS AS A REMEDY FOR PAST RACIAL DISCRIMINATION SO THAT THE LABEL STUCK AND THE MISLEADING MESSAGE IT CARRIED BROUGHT MS GUINIER DOWN MR BOLICK AND HIS ALLIES ARE AT IT AGAIN TAKING SHOTS AT MR PATRICK HE HAS ALREADY ACCUSED MR PATRICK OF SHARING THE SAME RADICAL VIEWS AS PROF GUINIER AND DUBBED MR PATRICK A STEALTH GUINIER CLEARLY IMPLYING THAT HE FAVORS QUOTAS WITHOUT OFFERING A SHRED OF EVIDENCE IN SUPPORT THERE IS NO SUCH EVIDENCE BECAUSE MR PATRICK DOES NOT BELIEVE IN QUOTAS AND HAS NEVER SAID HE DOES AS ONE WHO HAS KNOWN MR PATRICK FOR 20 YEARS I FIND THE SUGGESTION THAT HE IS A RADICAL TO BE LUDICROUS HE GREW UP IN POVERTY IN A SEGREGATED NEIGHBORHOOD OF CHICAGO HE WAS FORTUNATE TO HAVE A WISE AND LOVING MOTHER AND GRANDPARENTS HIS SEVENTHGRADE TEACHER RECOGNIZED THE SPECIAL QUALITIES NOW APPARENT TO ALL WHO KNOW HIM AND RECOMMENDED HIM TO A PROGRAM FOR MINORITY STUDENTS AT STAID MILTON ACADEMY A PREP SCHOOL NEAR BOSTON FROM THERE HE PROCEEDED TO HARVARD COLLEGE A ROCKEFELLER FELLOWSHIP HARVARD LAW SCHOOL AND A CLERKSHIP WITH A FEDERAL COURT OF APPEALS JUDGE AFTER THREE YEARS WITH THE NAACP LEGAL DEFENSE FUND HE WOUND UP AS A PARTNER IN A LEADING CORPORATE LAW FIRM IN BOSTON MR PATRICK'S OPPONENTS APPARENTLY REGARD HIS WORK FOR THE LEGAL DEFENSE FUND AS EVIDENCE OF HIS ASSUMED RADICAL VIEWS BUT AS A LONGTIME MEMBER OF THE LDF BOARD I CAN REASSURE HIM THAT THE ORGANIZATION DOES NOT FAVOR A QUOTA SYSTEM ITS BOARD INCLUDES WALL STREET LAWYERS BUSINESS EXECUTIVES AND BARASSOCIATION OFFICIALS HARDLY RADICALS MR PATRICK HAS THE WILL AND THE ABILITY TO ENFORCE THE CIVILRIGHTS LEGISLATION ENACTED BY CONGRESS AND TO CARRY OUT THE POLICIES OF THE PRESIDENT AND ATTORNEY GENERAL HE WILL BE A STRONG AND COMPASSIONATE ADVOCATE FOR FAIRNESS JUSTICE AND OPPORTUNITY 9403040206 940304 BUSINESS BRIEF ANDERSEN CONSULTING WORLD REVENUE ROSE IN '93 TELECOMMUNICATIONS CITED ANDERSEN CONSULTING SAID ITS WORLDWIDE REVENUE ROSE 6 IN 1993 BOOSTED BY STRONG GROWTH IN ITS TELECOMMUNICATIONS PRACTICE REVENUE AT THE CHICAGOBASED MANAGEMENT AND TECHNOLOGY CONSULTING CONCERN TOTALED 288 BILLION UP FROM 272 BILLION A YEAR EARLIER OF THAT FIGURE US REVENUE TOTALED 141 BILLION UP 13 FROM 125 BILLION IN 1992 REVENUE FROM TELECOMMUNICATIONS ANDERSEN'S FASTESTGROWING INDUSTRY PRACTICE ROSE 24 TO 238 MILLION GEORGE T SHAHEEN ANDERSEN'S WORLDWIDE MANAGING PARTNER SAID THE GROWTH IS FUELED BY THE CONVERGENCE OF TELEPHONE CABLETV AND COMPUTER TECHNOLOGIES MR SHAHEEN SAID ANDERSEN ALSO IS SEEING STRONG GROWTH FROM HELPING COMPANIES REENGINEER THEIR OPERATIONS 9403040205 940304 WHO'S NEWS ADAC LABORATORIES ADAC LABORATORIES MILPITAS CALIF DAVID L LOWE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MEDICALIMAGING COMPANY WAS APPOINTED TO THE ADDITIONAL POST OF COCHIEF EXECUTIVE OFFICER MR LOWE 33 YEARS OLD WILL SHARE THE DUTIES WITH STANLEY CZERWINSKI 58 CHIEF EXECUTIVE WHO REMAINS CHAIRMAN 9403040204 940304 WHO'S NEWS SHOWSCAN CORP SHOWSCAN CORP CULVER CITY CALIF WILLIAM SOADY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER FILLING TWO TOP POSITIONS THAT HAD BEEN VACANT SINCE LAST MAY MR SOADY 50 YEARS OLD HAD BEEN PRESIDENT OF DOMESTIC DISTRIBUTION FOR TRISTAR PICTURES A UNIT OF SONY CORP HE SUCCEEDS ROY H AARON 64 WHO RESIGNED LAST YEAR IN THE INTERIM MR AARON'S FUNCTION HAD BEEN FILLED BY A FOURMEMBER OFFICE OF THE CHAIRMAN HEADED BY WILLIAM D EBERLE SHOWSCAN'S CHAIRMAN 9403040202 940304 DILLARD DEPARTMENT STORES INC LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC SAID SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE 1 FOR THE MONTH ENDED FEB 26 TOTAL SALES FOR THE MONTH INCREASED 5 TO 3801 MILLION FROM 3623 MILLION 9403040201 940304 S&P MIDCAP 400 ADDS INDUSTRIES THE FIVE GROUPS INCLUDE INDEPENDENT POWER PRODUCERS RETAIL DISCOUNTERS RETAIL FOOD CHAINS RETAIL HOME SHOPPING AND RETAIL OFFICE PRODUCTS AS A RESULT 12 COMPANIES HAVE BEEN TRANSFERRED 9403040200 940304 CONSOLIDATED STORES CORP SALES COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES AT STORES OPEN TWO FULL YEARS DECLINED 18 IN THE FOUR WEEKS ENDED FEB 26 COMPARED WITH ONE YEAR AGO TOTAL RETAIL SALES AT THE CLOSEOUT MERCHANDISER INCREASED 13 TO 626 MILLION IN THE PERIOD COMPARED WITH 552 MILLION IN THE YEAREARLIER PERIOD 9403040199 940304 FINANCING BUSINESS AIR METHODS CORP AIR METHODS CORP DENVER REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 25 MILLION OF CONVERTIBLE PREFERRED STOCK EXPECTED TO CARRY A 9 DIVIDEND THE COMPANY PROVIDES AIRMEDICAL SERVICES AND SYSTEMS 9403040198 940304 STARBUCKS' FEBRUARY SALES SURGED SEATTLE STARBUCKS CORP SAID SALES FOR FEBRUARY SURGED 70 TO 178 MILLION FROM 105 MILLION A YEAR EARLIER THE OPERATOR OF COFFEE STORES SAID STORES OPEN AT LEAST A YEAR ROSE ONLY 9 FOR THE PERIOD DEPRESSED BY BAD WINTER WEATHER 9403040197 940304 REX STORES FEBRUARY SALES THE SPECIALTY RETAILER OF ELECTRONIC PRODUCTS AND APPLIANCES SAID TOTAL RETAIL SALES INCREASED 30 TO 226 MILLION FROM 174 MILLION A YEAR EARLIER 9403040196 940304 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 259188 METRIC TONS IN THE WEEK ENDED SATURDAY UP 03 FROM 258299 TONS IN THE PRECEDING WEEK AND DOWN 79 FROM 281443 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1994 WAS 2033542 TONS DOWN 74 FROM 2195892 TONS A YEAR EARLIER 9403040195 940304 INTERNATIONAL HYUNDAI AUTORELATED SERVICES SEOUL SOUTH KOREA'S LEADING AUTO MAKER HYUNDAI MOTOR CO SAID IT WILL SPEND A TOTAL OF 200 BILLION WON 2473 MILLION THIS YEAR TO BOLSTER AUTORELATED SERVICES INCLUDING MARKETING AND MAINTENANCE UNDER THE PLAN THE AUTO MAKER IS TO INCREASE MAINTENANCE POINTS TO 687 NATIONWIDE FROM 565 WHILE IT EXPANDS PARTSSELLING OUTLETS TO 1119 FROM 1006 9403040194 940304 HILO'S FEBRUARY SALES ROSE 17 HOUSTON HILO AUTOMOTIVE INC SAID FEBRUARY SALES INCREASED 17 TO 166 MILLION FROM 142 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 58 9403040192 940304 MOTHERS WORK'S SALES DOUBLE PHILADELPHIA MOTHERS WORK INC A RETAILER OF UPSCALE MATERNITY CLOTHING SAID FEBRUARY SALES DOUBLED TO 44 MILLION FROM 22 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 82 THE COMPANY OPERATES 138 STORES INCLUDING 22 STORES ADDED ON FEB 1 BECAUSE OF AN ACQUISITION AND THREE STORES THAT OPENED DURING THE MONTH 9403040191 940304 US SHOE CORP RETAIL SALES CINCINNATI US SHOE CORP SAID RETAIL SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED 4 FOR THE FOUR WEEKS ENDED FEB 26 COMPARED WITH THE YEAREARLIER PERIOD TOTAL RETAIL SALES FOR THE FOURWEEK PERIOD AT THE WOMEN'S APPAREL FOOTWEAR AND OPTICAL PRODUCTS CONCERN DECLINED 2 TO 1394 MILLION FROM 1423 MILLION THE COMPANY SAID IT HAD 2242 STORES OPEN DURING THE PERIOD DOWN 87 FROM 2455 STORES IN THE SAME PERIOD LAST YEAR 9403040190 940304 MEN'S WEARHOUSE SALES INCREASE FREMONT CALIF MEN'S WEARHOUSE A DISCOUNT RETAILER OF MEN'S APPAREL SAID FEBRUARY SALES JUMPED 52 TO 175 MILLION FROM 115 MILLION IN FEBRUARY 1993 SALES AT STORES OPEN AT LEAST A YEAR ROSE 23 FROM LAST YEAR'S PERIOD 9403040189 940304 CENTRAL & SOUTH WEST STAFF CUTS DALLAS CENTRAL & SOUTH WEST CORP SAID IT WILL REDUCE ITS WORK FORCE BY ABOUT 750 FULLTIME EMPLOYEES AND 100 FULLTIME CONTRACT PROFESSIONALS OR 10 OF THE COMPANY'S TOTAL WORK FORCE THE CUTS TO BE COMPLETED THIS YEAR ARE PART OF A CORPORATE RESTRUCTURING ANNOUNCED BY THE PUBLIC UTILITY COMPANY IN NOVEMBER CENTRAL & SOUTH WEST IS ALSO OFFERING EARLY RETIREMENT TO 726 EMPLOYEES 9403040188 940304 TURKEY'S TRADE DEFICIT WIDENS ANKARA TURKEY TURKEY'S FOREIGN TRADE DEFICIT WIDENED TO 818 MILLION IN JANUARY FROM 519 MILLION A YEAR EARLIER THE ANATOLIA NEWS AGENCY SAID EXPORTS TOTALED 1324 BILLION UP FROM 1274 BILLION IMPORTS REACHED 2142 BILLION UP FROM 1793 BILLION 9403040187 940304 WHO'S NEWS MICROCOM NAMES PAMPEL CHIEF NORWOOD MASS MICROCOM INC NAMED ROLAND D PAMPEL PRESIDENT AND CHIEF EXECUTIVE OFFICER MR PAMPEL 51 YEARS OLD SUCCEEDS JAMES M DOW FOUNDER OF THIS HARDWARE AND SOFTWARE CONCERN MR DOW 43 REMAINS CHAIRMAN MR PAMPEL WHOSE LONG CAREER IN THE COMPUTER INDUSTRY INCLUDES EXECUTIVE POSITIONS AT PRIME COMPUTER INC AND APOLLO COMPUTER INC WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE AT NICOLET INSTRUMENT CORP MR DOW WHO INITIATED THE SEARCH FOR A SUCCESSOR SAID IT WAS TIME TO INTRODUCE NEW IDEAS AND MANAGEMENT PRACTICES AT MICROCOM 9403040186 940304 JAMESWAY SALES DECLINE SECAUCUS NJ JAMESWAY CORP SAID FEBRUARY SALES EXCLUDING A LEASED DEPARTMENT TOTALED 355 MILLION DOWN 7 FROM 382 MILLION A YEAR AGO SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 THE COMPANY OPERATED 94 DISCOUNT DEPARTMENT STORES IN SEVEN MIDATLANTIC STATES IN FEBRUARY COMPARED WITH 108 STORES A YEAR AGO 9403040185 940304 SALES AT TODAY'S MAN RISE 14 MOORESTOWN NJ TODAY'S MAN INC SAID FEBRUARY SALES ROSE 14 TO 86 MILLION FROM 75 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR FELL 6 THE COMPANY OPERATES 21 MENSWEAR SUPERSTORES IN THREE NORTHEAST REGIONAL MARKETS 9403040184 940304 COMPUTER DATA SYSTEMS' JOB ROCKVILLE MD COMPUTER DATA SYSTEMS INC RECEIVED A FOURYEAR CONTRACT ESTIMATED AT 13 MILLION INCLUDING ALL OPTION YEARS FROM THE US POSTAL SERVICE TO PROVIDE SOFTWARE AND TELECOMMUNICATION SERVICES 9403040183 940304 WR GRACE UNIT'S PRODUCTION BOCA RATON FLA WR GRACE & CO SAID IT PLANS TO BOOST PRODUCTION CAPACITY AT ITS GRACE PACKAGING UNIT THROUGH A 70 MILLION EXPANSION PLAN THE SPECIALTY CHEMICALS AND HEALTHCARE CONCERN SAID THE EXPANSION WILL ALLOW IT TO INCREASE MANUFACTURING OF ITS CRYOVAC SHRINK FILM PRODUCT LINE FACILITIES IN GRACE PACKAGING PLANTS IN THE UK SOUTH CAROLINA AND FRANCE WILL RECEIVE ADDITIONAL EQUIPMENT 9403040182 940304 WOLOHAN LUMBER FEBRUARY SALES FOR THE FIRST TWO MONTHS OF 1994 TOTAL SALES CLIMBED 89 TO 443 MILLION FROM 407 MILLION A YEAR EARLIER SAMESTORE SALES INCREASED 64 9403040181 940304 ENTERGY UNIT'S RATE REDUCTION NEW ORLEANS ENTERGY CORP SAID THE MISSISSIPPI PUBLIC SERVICE COMMISSION APPROVED NEW RATES THAT WOULD REDUCE ANNUAL REVENUE FOR ITS MISSISSIPPI POWER & LIGHT CO UNIT BY 281 MILLION THE REDUCTION REPRESENTS A 37 DECREASE IN MISSISSIPPI POWER & LIGHT'S REVENUE FROM RETAIL SALES THE PLAN HOWEVER ENSURES AN 11 RETURN ON EQUITY THE NEW RATES TAKE EFFECT MARCH 25 9403040180 940304 INTERNATIONAL WEST GERMAN INDUSTRIAL OUTPUT BONN WESTERN GERMAN INDUSTRIAL OUTPUT WAS UNCHANGED IN JANUARY FROM DECEMBER FOLLOWING A 05 UPWARD REVISION IN THE DECEMBER DATA THE ECONOMICS MINISTRY SAID IN A PRELIMINARY REPORT JANUARY'S OUTPUT WAS UP 02 FROM A YEAR EARLIER THE FIGURES ARE PRICE AND SEASONALLY ADJUSTED THE INDUSTRIAL OUTPUT INDEX FOR DECEMBER WAS REVISED UPWARD TO 1118 FROM A PRELIMINARY FIGURE OF 1112 THE REVISION MEANS THAT DECEMBER'S OUTPUT ROSE BY 13 FROM NOVEMBER RATHER THAN THE RISE OF 07 ORIGINALLY REPORTED THE STABILIZATION IN INDUSTRIAL PRODUCTION WAS LARGELY BECAUSE OF AN 84 INCREASE IN JANUARY OUTPUT FROM THE CONSTRUCTION INDUSTRY 9403040179 940304 BONTON STORES POSTS GAINS YORK PA BONTON STORES INC SAID FEBRUARY SALES WERE 176 MILLION UP 11 FROM 159 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED 12 BONTON OPERATES 35 DEPARTMENT STORES IN PENNSYLVANIA NEW YORK MARYLAND AND WEST VIRGINIA 9403040178 940304 MESA AIR POSTS GAINS FARMINGTON NM MESA AIRLINES SAID THAT FEBRUARY TRAFFIC ROSE 2 FROM FEBRUARY 1993 THE CARRIER REPORTED 716 MILLION REVENUE PASSENGER MILES FOR THE LATEST MONTH UP FROM 702 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 501 FROM 487 FOR THE YEAR TRAFFIC ROSE 07 TO 1426 MILLION REVENUE PASSENGER MILES FROM 1416 MILLION IN 1993 LOAD FACTOR ALSO INCREASED TO 479 FROM 478 9403040177 940304 INTERNATIONAL SPAIN'S 4THQUARTER GDP SHRANK MADRID SPAIN'S GROSS DOMESTIC PRODUCT CONTRACTED BY 03 IN THE FOURTH QUARTER OF 1993 FROM THE FOURTH QUARTER OF 1992 THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE SAID REAL GDP SHRANK 1 IN 1993 FROM 1992 GDP GREW 08 IN 1992 FOURTHQUARTER GDP ROSE 01 FROM THE THIRD QUARTER THE INSTITUTE SAID THE INSTITUTE ALSO REVISED ITS THIRDQUARTER GDP FIGURE TO A 1 DECLINE FROM THE THIRD QUARTER OF 1992 FROM THE ORIGINAL FIGURE OF 09 RELEASED LAST DECEMBER 9403040176 940304 BUSINESS BRIEFS WGIM ACQUISITION CORP COMPLETED ITS ACQUISITION OF CLOSELY HELD IMAX CORP THE TOTAL ACQUISITION PRICE IS BELIEVED TO BE MORE THAN 100 MILLION GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED AN 18 MILLION ORDER FROM ANSALDO INDUSTRIA OF AMERICA TO SUPPLY POWERGENERATION EQUIPMENT FOR A COGENERATON FACILITY IN HUME NY CHUBB CORP AND CIGNA CORP SAID THEY RECEIVED APPROVAL TO ESTABLISH REPRESENTATIVE OFFICES IN BEIJING DRESSER INDUSTRIES INC COMPLETED THE 160 MILLION SALE OF ITS 64 INTEREST IN MI DRILLING FLUIDS CO TO SMITH INTERNATIONAL INC 9403040175 940304 GOTTSCHALKS'S SALES RISE FRESNO CALIF GOTTSCHALKS INC OPERATOR OF A REGIONAL DEPARTMENTSTORE CHAIN SAID ITS FEBRUARY SALES ROSE 17 TO 204 MILLION FROM 175 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 13 9403040174 940304 CANADIAN PULP OUTPUT ROSE 8 IN JANUARY MONTREAL CANADIAN PRODUCTION OF MARKET PULP ROSE 8 IN JANUARY FROM A YEAR EARLIER WHILE SHIPMENTS ROSE 26 THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 677000 METRIC TONS OF MARKET PULP UP FROM 624000 METRIC TONS A METRIC TON IS EQUAL TO 220462 POUNDS THE OPERATING RATE WAS 94 UP FROM 91 TOTAL MARKET SHIPMENTS IN JANUARY ROSE TO 643000 TONS FROM 511000 TONS SHIPMENTS TO THE US ROSE 1 TO 203000 TONS CANADIAN PRODUCER INVENTORIES AT THE END OF JANUARY WERE 578000 TONS A 27DAY SUPPLY COMPARED WITH 544000 TONS IN DECEMBER MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS 9403040173 940304 INTERNATIONAL SWEDISH FIRM OPENS OFFICE STOCKHOLM SWEDEN'S FOERSAEKRINGS AB SKANDIA THE NORDIC REGION'S LARGEST INSURANCE GROUP SAID IT OPENED AN OFFICE IN VIENNA TO CONDUCT UNITLINKED OPERATIONS IN AUSTRIA THE VIENNA OFFICE IS A BRANCH OF SKANDIA LEBEN AG OF SWITZERLAND AND WILL BE CAPITALIZED WITH 70 MILLION AUSTRIAN SCHILLINGS 58 MILLION HALF OF WHICH WILL BE FINANCED THROUGH RESOURCES FROM THE SWISS SUBSIDIARY SKANDIA SAID 9403040172 940304 UNION BANK OF SWITZERLAND FUND NEW YORK UNION BANK OF SWITZERLAND SAID IT AGREED TO INVEST 200 MILLION IN AN ENERGY INVESTMENT FUND BEING ORGANIZED BY PRIVATE INVESTMENT FIRM BEACON GROUP OF NEW YORK THE BANK SAID THE FUND WILL IDENTIFY ATTRACTIVE INVESTMENTS ARISING FROM ANTICIPATED RESTRUCTURINGS ACROSS ALL SEGMENTS OF THE ENERGY BUSINESS UNION BANK IS INVOLVED IN FINANCING FOR ENERGY RELATED PROJECTS SUCH AS POWER GENERATION MINING AND PETROCHEMICALS 9403040171 940304 TANDY SALES ROSE IN FEBRUARY FORT WORTH TEXAS TANDY CORP SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 8 IN THE US IN FEBRUARY THE RETAILER OF CONSUMER ELECTRONICS GOODS SAID SALES AT ALL US STORES WERE UP 23 TO 3039 MILLION FROM 2461 MILLION 9403040170 940304 WHO'S NEWS CS FIRST BOSTON LURES EXECUTIVE PATTERSON FROM BANKERS TRUST NEW YORK CS FIRST BOSTON HAS HIRED AWAY ONE OF BANKERS TRUST NEW YORK CORP'S KEY CAPITALMARKETS EXECUTIVES MARK PATTERSON TO HEAD ITS REORGANIZED CAPITALMARKETS BUSINESS MR PATTERSON 42 YEARS OLD WILL BE IN CHARGE OF CS FIRST BOSTON'S LEVERAGED FINANCE GROUP WHICH UNITES ITS EMERGINGMARKETS STRUCTUREDFINANCING AND JUNKBOND DIVISIONS MR PATTERSON'S DEPARTURE IS A BLOW TO BANKERS TRUST AND ITS RECENT ATTEMPTS TO BEEF UP ITS BOND BUSINESS AT BANKERS TRUST MR PATTERSON WAS A MANAGING DIRECTOR IN CHARGE OF THE BANK'S JUNKBOND AND HIGHGRADE BOND DIVISIONS WHICH EXPANDED BROADLY UNDER HIS MANAGEMENT CS FIRST BOSTON IS THE BROKERAGE UNIT OF CS HOLDING AG WHICH ALSO CONTROLS SWISS BANK CREDIT SUISSE PART OF MR PATTERSON'S JOB THE COMPANY SAID WILL BE TO WORK AS A LIAISON FOR THE LEVERAGED FINANCE GROUP BETWEEN CREDIT SUISSE AND CS FIRST BOSTON WHICH WILL HAVE ACCESS TO THE BANK'S CAPITAL IN MAKING LOANS AND STRUCTURING CORPORATE FINANCINGS CS FIRST BOSTON PRESIDENT ALLEN WHEAT HIMSELF A FORMER A BANKERS TRUST EXECUTIVE SAID THE NEWLY COMBINED DEPARTMENT BRINGS TOGETHER SEVERAL BUSINESSES WITH MANY FUNDAMENTALS IN COMMON INTO A SINGLE GROUP WHICH WILL DELIVER PRODUCTS SPECIFICALLY DEVELOPED FOR CLIENTS IN THESE SIGNIFICANT GROWTH AREAS 9403040169 940304 COLUMBIA/HCA HEALTHCARE LOUISVILLE KY COLUMBIA/HCA HEALTHCARE CORP WILL KEEP ITS CORPORATE HEADQUARTERS IN LOUISVILLE RICHARD SCOTT PRESIDENT AND CHIEF EXECUTIVE OFFICER TOLD EMPLOYEES LOUISVILLE HAD BEEN COMPETING WITH NASHVILLE TENN WHICH WAS THE HEADQUARTERS OF HCA HOSPITAL CORP OF AMERICA COLUMBIA ACQUIRED HCA LAST MONTH MR SCOTT SAID COLUMBIA WILL ADD 300 EMPLOYEES TO ITS 850MEMBER HEADQUARTERS STAFF THE COMPANY ALSO SAID IT WILL BUILD A 150000SQUAREFOOT HEADQUARTERS BUILDING 9403040168 940304 BED BATH & BEYOND SALES RISE SPRINGFIELD NJ BED BATH & BEYOND INC SAID SALES FOR THE FIVEWEEK FEBRUARY SALES PERIOD TOTALED 28 MILLION UP 35 FROM A YEAR EARLIER WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 92 THE RETAILER OF DOMESTIC MERCHANDISE AND HOME FURNISHINGS SAID SALES FOR THE FOURTH FISCAL QUARTER ENDED FEB 27 ROSE 36 TO 878 MILLION FROM 645 MILLION AND COMPARABLE STORE SALES FOR THE QUARTER ROSE 10 AND FOR THE FISCAL YEAR SALES ROSE 41 TO 3058 MILLION FROM 2167 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR MORE THAN DOUBLED 9403040167 940304 EMPIRE STATE BUILDING SETS RENOVATIONS FOR DISABLED NEW YORK THE EMPIRE STATE BUILDING WILL UNDERGO SOME 18 MILLION IN RENOVATIONS TO MAKE IT MORE ACCESSIBLE TO THE DISABLED AS PART OF A SETTLEMENT WITH THE JUSTICE DEPARTMENT THE AGREEMENT SETTLES ONE OF THE FIRST COMPLAINTS FILED UNDER THE AMERICANS WITH DISABILITIES ACT THE COMPLAINT WAS FILED IN JANUARY 1992 AGAINST HELMSLEYSPEAR INC THE MANAGING AGENT AND EMPIRE STATE BUILDING CO THE LEASEHOLDER BY NEW YORK LAWYERS FOR THE PUBLIC INTEREST INC ON BEHALF OF AN ADVOCACY GROUP FOR THE DISABLED AMONG THE CHANGES AT THE LANDMARK MOST OF WHICH ARE SCHEDULED TO BE COMPLETED THIS YEAR ARE THE ADDITION OF RAMPS TO THE OBSERVATION DECKS AND THE INSTALLATION OF SPECIAL LOWER TELESCOPES FOR THE WHEELCHAIRBOUND THE JUSTICE DEPARTMENT WHICH DIDN'T SUE IN THE CASE SAID IT HAS 900 INVESTIGATIONS RELATED TO ADA COMPLAINTS AND HAS FILED OR IS INVOLVED IN 15 LAWSUITS 9403040166 940304 BEST PRODUCTS SALES INCREASE 12 RICHMOND VA BEST PRODUCTS CO SAID SALES FOR FEBRUARY ROSE 12 TO 886 MILLION FROM 79 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ALSO ROSE 12 THE COMPANY A CATALOG SHOWROOM RETAILER OPERATING UNDER CHAPTER 11 BANKRUPTCYCOURT PROTECTION SAID ITS OPERATIONS IN 22 STATES WERE DIVERSE ENOUGH TO OFFSET WEATHERRELATED WEAKNESSES IN SOME MARKETS RESULTS WERE ALSO WELL BALANCED BETWEEN JEWELRY AND HARD LINES BEST SAID 9403040165 940304 SCHNEIDER UNIT GETS CONTRACT PARIS FRENCH CONSTRUCTION GROUP SPIE BATIGNOLLES A UNIT OF SCHNEIDER SA SAID IT WON A CONTRACT FOR THE CONSTRUCTION OF A NEW PORTION OF A TERMINAL AT THE CHARLES DE GAULLEROISSY AIRPORT NORTH OF PARIS THE CONTRACT IS VALUED AT 400 MILLION FRANCS 689 MILLION WITH AN UNSPECIFIED AMOUNT CONSIDERED FIRM AND THE REMAINDER TO BE CONFIRMED AT A LATER DATE THE COMPANY SAID ITS SCGPM AND SPIECITRA UNITS WILL BE INVOLVED IN THE PROJECT 9403040164 940304 MITCHELL CUTS CAPITAL BUDGET THE WOODLANDS TEXAS MITCHELL ENERGY & DEVELOPMENT CORP SAID IT CUT ITS FISCAL 1995 CAPITAL BUDGET BY 21 TO 2308 MILLION THE COMPANY SAID THE MOVE WAS REQUIRED IN LIGHT OF DETERIORATING CRUDE OIL AND NATURAL GAS LIQUIDS PRICES MITCHELL SAID NATURAL GAS LIQUIDS PRODUCTION IS ONE OF THE COMPANY'S MOST IMPORTANT BUSINESSES 9403040163 940304 RAYTHEON CO WINS NASA PACT LEXINGTON MASS RAYTHEON CO SAID IT RECEIVED A 1708 MILLION CONTRACT TO PROVIDE SERVICES FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S MISSION OPERATIONS AND DATA SYSTEM DIRECTORATE AT GODDARD SPACE FLIGHT CENTER AT GREENBELT MD THE CONTRACT COVERS A BASIC PERIOD OF THREE YEARS 9403040162 940304 PEOPLES NATURAL GAS RATES PITTSBURGH PEOPLES NATURAL GAS CO SAID IT WILL FILE WITH STATE REGULATORS FOR A 59 RATE INCREASE ON APRIL 1 PRIMARILY TO COVER THE INCREASING COST OF PURCHASING GAS SUPPLIES IF THE REQUEST IS APPROVED THE RATES PROBABLY WOULD BECOME EFFECTIVE OCT 1 1994 THE NATURAL GAS UTILITY SAID THE NEW RATE WOULD BOOST BILLS FOR AVERAGE RESIDENTIAL CUSTOMERS ABOUT 460 A MONTH ACCORDING TO THE COMPANY A UNIT OF CONSOLIDATED NATURAL GAS CO 9403040161 940304 AIG WOULD BENEFIT UNDER PROPOSAL TO DIVIDE BURDEN OF SUPERFUND TAX BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN INTERNATIONAL GROUP INC THE COUNTRY'S BIGGEST COMMERCIAL INSURANCE COMPANY WOULD PAY A SMALLER TAX THAN OTHER BIG INSURERS UNDER THE CLINTON ADMINISTRATION'S PROPOSED SUPERFUND CHANGES THE DIFFERENCE ARISES BECAUSE AIG WROTE LESS INSURANCE FOR BUSINESSES IN THE 1970S AND EARLY 1980S THAN IT DOES CURRENTLY BECAUSE OF THE WAY THE PROPOSED TAX IS STRUCTURED INSURERS WITH OLDER POLICIES WOULD BEAR MORE OF THE FINANCIAL BURDEN FOR SUPERFUND CLEANUPS THIS DISPARITY WHILE OBVIOUSLY SUPPORTED BY AIG IS JUST ONE OF SEVERAL OBJECTIONS THAT THE INSURANCE INDUSTRY HAS RAISED WITH THE PROPOSED SUPERFUND REFORMS LAST WEEK THE INDUSTRY'S MAIN LOBBYING GROUP THE AMERICAN INSURANCE ASSOCIATION VOTED TO FIGHT THE TAX CALLING IT UNFAIR THE SUPERFUND PLAN ALSO HAS RECEIVED MIXED REVIEWS FROM ENVIRONMENTALISTS AND MEMBERS OF CONGRESS THE WHITE HOUSE PROPOSAL CALLS FOR THE INSURANCE INDUSTRY TO PAY 31 BILLION OVER FIVE YEARS THROUGH A NEW TAX THE MONEY WOULD GO INTO A TRUST FUND THAT POLLUTERS COULD TAP FOR PARTIAL PAYMENT OF THEIR HAZARDOUSWASTE CLEANUP COSTS THE TAX ON INSURANCE COMPANIES WOULD BE BASED ON HOW MUCH COMMERCIAL INSURANCE IT WRITES THE PLAN TRIES TO RECOGNIZE THAT COMPANIES THAT WROTE A LOT OF BUSINESS INSURANCE IN THE PAST WHEN THE SITES WERE POLLUTED HAVE MORE LIABILITY THAN THOSE THAT HAD WRITTEN LESS SO THE REVENUE FORMULA CALLS FOR 70 OF THE MONEY TO COME FROM A TAX ASSESSED AGAINST CERTAIN BUSINESS INSURANCE PREMIUMS COLLECTED FROM 1971 TO 1985 THE REST WOULD BE BASED ON PREMIUMS WRITTEN FROM 1986 TO THE PRESENT SUCH COMPANIES AS AETNA LIFE & CASUALTY CO TRAVELERS INC CIGNA CORP AND ITT CORP'S HARTFORD INSURANCE UNIT DOMINATED THE BUSINESS IN THE 1970S AND EARLY 1980S THEY WOULD PAY MORE THAN AIG WHICH DIDN'T EMERGE AS THE TOP BUSINESS INSURER UNTIL THE MID1980S ACCORDING TO STANDARD & POOR'S CORP AIG WAS ONLY THE 19TH LARGEST WRITER OF GENERAL LIABILITY INSURANCE POLICIES A STANDARD FORM OF BUSINESS INSURANCE IN 1970 BUT ROSE TO NO 1 BY 1984 TRAVELERS MEANWHILE DROPPED TO 8TH PLACE BY 1987 FROM THIRD PLACE IN 1970 THE AMERICAN INSURANCE ASSOCIATION SAYS THE DISTINCTION BETWEEN OLD AND NEW PREMIUMS IS UNFAIR THE ADMINISTRATION ASSUMES THAT IT CAN ACCURATELY MEASURE WHICH INSURANCE COMPANIES ARE MOST LIABLE BUT THE TRADE GROUP SAYS THAT CHANGES IN COMPANY OWNERSHIP AND OTHER FACTORS MAKE THAT GOAL IMPOSSIBLE IT ADDS THAT THE TAX FORMULA ALSO WOULD PUT COMPANIES WITH A HEAVIER TAX BURDEN AT A COMPETITIVE DISADVANTAGE TO THOSE THAT HAVE LESS OF A BURDEN THIS IS THE WRONG WAY TO GO ABOUT IT SAID JOHN ARLINGTON SENIOR COUNSEL FOR THE TRADE GROUP THE GROUP WOULD PREFER THAT THE TAX BE BASED ENTIRELY ON HOW MUCH BUSINESS A COMPANY CURRENTLY WRITES AIG IS NOT A MEMBER OF THE AMERICAN INSURANCE ASSOCIATION THE COMPANY HAS DONE ITS OWN LOBBYING ON SUPERFUND AND FOR THE LAST FIVE YEARS IT HAS BEEN PUSHING MORE AGGRESSIVELY THAN THE REST OF THE INDUSTRY FOR REFORM AIG CHAIRMAN MAURICE GREENBERG SAID EARLIER THIS WEEK THAT IT IS PERFECTLY LOGICAL THAT INSURANCE COMPANIES WITH MORE EXPOSURE SHOULD PAY MORE ADDING THAT THE TRADE GROUP'S POSITION WOULD BE AMUSING IF IT WEREN'T SO SERIOUS HE SAID THAT HOW THE TAX IS ASSESSED IS LESS SIGNIFICANT THAN THE FACT THAT THE ADMINISTRATION'S REFORM PLAN IS FUNDAMENTALLY FLAWED HIS MAIN OBJECTION IS HOW THE ADMINISTRATION'S PROPOSAL FAILS TO TAKE LITIGATION OUT OF THE CLEANUP PROCESS UNDER THE CURRENT SYSTEM POLLUTERS AND INSURANCE COMPANIES SPEND MORE MONEY IN COURT DECIDING WHO SHOULD PAY FOR REMEDIATION THAN THEY DO ON CLEANUP ITSELF THE WHOLE PLAN IS FLAWED WITH RESPECT TO LIABILITY MR GREENBERG SAID SUPERFUND REFORM IS ONE OF THE MOST PRESSING ISSUES IN THE PROPERTY AND CASUALTY INSURANCE BUSINESS UNLESS THE SYSTEM IS CHANGED THE INSURANCE INDUSTRY COULD WIND UP PAYING 100 BILLION OR MORE TO PAY CLAIMS AND LEGAL BILLS RELATED TO CLEANING UP SUPERFUND SITES ACCORDING TO TILLINGHAST AN ACTUARIAL CONSULTING FIRM THE INSURANCE INDUSTRY SAYS THE ADMINISTRATION PLAN WOULD DO LITTLE TO EASE ITS BURDEN BECAUSE UNDER THE PLAN POLLUTERS WOULD BE GIVEN A CHOICE OF WHETHER TO TAP AN INSURANCEINDUSTRYFINANCED TRUST FUND TO PAY PART OF THEIR CLEANUP COSTS OR SEEK PAYMENT THE SAME WAY THEY DO NOW WHICH IS BY SUING INSURANCE COMPANIES TO GET PAYMENT UNDER THEIR OLD INSURANCE POLICIES 9403040160 940304 CZECH TRUCK MAKER RESISTS JUMP START GUNGHO PLAN OF US GROUP TURNS INTO TOUGH DRIVE BY NEIL KING JR STAFF REPORTER OF THE WALL STREET JOURNAL KOPRIVNICE CZECH REPUBLIC LAST WINTER THREE US EXECUTIVES HUDDLED IN A HOTEL ROOM HERE AND DECIDED TO TAKE A SHOT AT RESURRECTING ONE OF EASTERN EUROPE'S MOST FAMOUS TRUCK MAKERS WITH PLENTY OF SWAGGER TO GO AROUND THE THREESOME VOWED TO MAKE TATRA KOPRIVNICE PROFITABLE AGAIN BY MARCH 1995 IN RETURN FORMER CHRYSLER CORP EXECUTIVE GERALD GREENWALD AND HIS PARTNERS DAVID SHELBY AND JACK D RUTHERFORD WOULD RECEIVE UNDISCLOSED MONTHLY SALARIES AND A 15 STAKE IN TATRA WITH THE LATTER ALONE THEN VALUED AT ABOUT 140 MILLION TODAY WITH ONE YEAR DOWN AND ONE TO GO THE TALK AT TATRA REMAINS AS GUNGHO AS EVER BUT RESULTS HAVE PROVEN SPOTTY AT BEST THE COMPANY SOLD NEARLY 1000 FEWER TRUCKS LAST YEAR AND IT IS EXPECTED TO HAVE GONE DEEPER INTO THE RED AND THOUGH DISTRIBUTORSHIPS ARE IN THE WORKS FOR BRAZIL THE MIDDLE EAST NORTH AFRICA AND EVEN ALASKA EFFORTS TO TAP THE BROADER AMERICAN MARKET HAVE GONE NOWHERE WE ALL THOUGHT NORTH AMERICA WOULD BE A LONG SHOT AND SO FAR IT'S BEEN JUST THAT SAYS MR RUTHERFORD A FORMER HEAD OF MANUFACTURING AT INTERNATIONAL HARVESTER AND NOW A CHICAGOBASED INVESTOR SPECIALIZING IN AILING ENTERPRISES TATRA'S REBIRTH WAS CERTAIN TO BE TOUGH WHEN THE AMERICANS TOOK OVER ANNUAL SALES AT THE SPRAWLING PLANT HAD TUMBLED IN JUST THREE YEARS TO JUST MORE THAN 5000 TRUCKS FROM ABOUT 13000 DEBT HAD SOARED TO NEARLY 140 MILLION AND THE TRUCK MAKER'S TRADITIONAL BUYERS TO THE EAST WERE ALL BUT BROKE BUT WHAT STRUCK MANY AS STRANGE ABOUT THE AMERICAN PARTNERS WAS THAT NONE PLANNED TO SPEND MORE THAN ONE WEEK A MONTH AT TATRA THEIR REMAINING TIME WOULD GO TO OTHER PURSUITS IN THE US AMOUNTING TO WHAT SOME HERE CALLED MANAGEMENT BY REMOTE CONTROL ON TAKING CHARGE OF TATRA LAST MARCH HOWEVER THE PARTNERS LAID OUT A BASIC PLAN SLASH THE WORK FORCE OF 10000 BY AS MUCH AS 20 RENEGOTIATE TATRA'S HUGE DEBT TO LENDERS AND SUPPLIERS AND INSTILL A SALESDRIVEN MENTALITY IN MANAGERS MOST IMPORTANT THOUGH WAS THEIR PROMISE TO INTRODUCE THE BRAWNY TATRA TRUCK TO WESTERN MARKETS FROM THE AMAZON TO ALASKA WE LOOK FORWARD TO SHOWING EVERYONE THAT WE CAN DO WHAT WE SAY WE CAN DO MR GREENWALD TOLD REPORTERS LAST SPRING HIS TEAM ALLIED UNDER THE NAME GSR INC MEASURES ITS ACHIEVEMENTS IN TERMS OF PROMISES MADE GOOD MORE THAN 2000 WORKERS HAVE LOST THEIR JOBS SINCE GSR TOOK OVER INVENTORIES HAVE BEEN CUT NEARLY IN HALF AND TATRA'S DEBT WHILE ONLY SLIGHTLY SMALLER THAN LAST YEAR HAS BEEN SHIFTED TO LONGERTERM OBLIGATIONS HOWEVER SIGNIFICANT THESE CHANGES MAY HAVE BEEN TATRA'S SHAREHOLDERS GOT A MAJOR BLOW IN DECEMBER WHEN WORD GOT OUT THAT MR GREENWALD THOUGHT TO BE THEIR PRINCIPAL SAVIOR MIGHT SOON TAKE THE TOP JOB AT UAL CORP THE PARENT OF UNITED AIRLINES THE 58YEAROLD EXECUTIVE QUICKLY MOVED TO QUELL THE DISQUIET BY ASSURING SHAREHOLDERS THAT HE'D FULFILL HIS OBLIGATIONS AT TATRA EVEN IF HE GOT THE UAL JOB BUT THAT IDEA SOUNDS PECULIAR TO JOZEF HORAK DIRECTOR OF TATRA'S LARGEST SHAREHOLDER PRVNI INVESTICNI AND FIRST VICE CHAIRMAN ON TATRA'S BOARD THE REACTION HERE TO THIS ANNOUNCEMENT WAS NOT VERY FAVORABLE HE SAYS A JOB OF UAL'S SIZE WOULD REQUIRE 100 OF ANYONE'S TIME FOR HIS PART MR GREENWALD REFUSES TO SAY A WORD ABOUT ANY POSSIBLE WORK ARRANGEMENT WITH UAL WHAT'S IMPORTANT HE SAYS IS THAT HE AND HIS PARTNERS HAVE SIGNED A CONTRACT WITH TATRA AND THEY WILL LIVE UP TO IT MR GREENWALD GAINED FAME IN THE EARLY 1980S AS A CHIEF ARCHITECT OF CHRYSLER'S RECOVERY THAT FAME HAS CARRIED HIM FAR EVER SINCE AFTER RESIGNING THE NO 2 JOB AT CHRYSLER IN 1990 HE WENT ON TO LEAD A FAILED UNION BUYOUT OF UAL THAT EARNED HIM 9 MILLION IN COMPENSATION HE THEN MOVED ON TO TWO OTHER JOBS IN AS MANY YEARS THE SECOND AS PRESIDENT OF OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN REALESTATE CONCERN HE QUIT THERE TO TAKE OVER TATRA LAST APRIL WERE HE TO SIGN ON WITH UAL IT WOULD BE HIS SIXTH JOB IN FOUR YEARS THE TATRA TURNAROUND MR GREENWALD NOW CONCEDES APPEARED A LOT MORE GRUELING ONCE HE TOOK A CLOSER LOOK THE COMPANY'S SALES AND DISTRIBUTION NETWORK HE SAYS TURNED OUT TO BE MUCH WEAKER THAN WE'D EVER THOUGHT AND THE AMERICAN MARKET HAS PROVEN FAR LESS HOSPITABLE THAN PREDICTED LARGELY BECAUSE TATRA TRUCKS RENOWNED FOR THEIR DURABILITY IN BRUTAL TERRAIN ARE ALSO GAS GUZZLERS SO FOR NOW THE COMPANY IS SETTING ITS SIGHTS ON NORTH AFRICA AND THE MIDDLE EAST THEN THERE'S CHINA WHICH ACCOUNTED FOR NEARLY A QUARTER OF TATRA'S 1993 SALES IT IS ALSO ANGLING FOR A BIG ENGINE CONTRACT FROM THE RUSSIAN TRUCK GIANT KAMAS WHOSE OWN ENGINE PLANT WAS DESTROYED BY FIRE LAST YEAR THAT CONTRACT ALONE COULD BE GOOD FOR 20000 ENGINES A YEAR YET SUCH TALK CARRIES LITTLE WEIGHT WITH TATRA'S RANK AND FILE WHO HAVE SEEN THE COMPANY'S PRODUCTION DROP TO JUST 2000 TRUCKS LAST YEAR FROM AROUND 15000 IN 1988 THIS COUNTRY HAS TURNED INTO AN ALASKA FOR AMERICANS WANTING TO PLUNDER THE PLACE FROM AFAR SAYS ONE TECHNICAL DESIGNER WITH 20 YEARS EXPERIENCE AT THE PLANT THE ONLY CHANGES I'VE SEEN HAVE BEEN BAD ONES LIKE LOWER PRODUCTION AND FEWER JOBS STILL MESSRS GREENWALD SHELBY AND RUTHERFORD DO HAVE THEIR DEFENDERS EVEN THOUGH PRAISE FOR THE THREE IS OFTEN TEMPERED WITH QUALIFICATIONS EVERYTHING IS CHANGING BUT VERY SLOWLY SAYS JAN VALA A TATRA ENGINEER WITH 19 YEARS AT THE COMPANY RESISTANCE IS SO EXTREME THAT IF THEY TRIED TO CHANGE EVERYTHING AT ONCE THE SYSTEM WOULD BREAK DOWN THE THREE AMERICANS REFUSE TO DISCLOSE FIGURES FOR TATRA'S PERFORMANCE LAST YEAR BEYOND HOW MANY TRUCKS WERE MADE AND HOW MANY SOLD MORE RELEVANT NUMBERS THEY SAY WON'T BE MADE PUBLIC UNTIL THE RELEASE OF TATRA'S ANNUAL REPORT IN APRIL EVEN SO DESPITE ASSURANCES LAST SPRING THAT THEIR STAKE IN TATRA WOULD DEPEND ENTIRELY ON ITS PERFORMANCE MR RUTHERFORD NOW SAYS THAT GSR'S SHARE WILL JUMP TO 10 BY NEXT MONTH THE REMAINING 5 SHARE WILL COME NEXT YEAR SO LONG AS TATRA SHOWS EVEN 1 OF PROFIT HE ADDS ALL IN ALL MR HORAK OF PRVNI INVESTICNI DEFENDS GSR'S PERFORMANCE CONTENDING THAT THE THREESOME HAVE MADE IMPORTANT STEPS TO TURN TATRA INTO AN EFFICIENT COMPANY BUT WE WOULD BE A BAD BOARD HE ADDS IF WE WERE SATISFIED WITH LAST YEAR'S RESULTS WHICH WERE WORSE THAN WE HAD EXPECTED TATRA'S PLUNGING SALES MR RUTHERFORD ARGUES ARE DUE LARGELY TO THE LINGERING EUROPEAN RECESSION AND WHAT HE CALLS A COMPLETE DOWNTURN IN THE WORLD'S TRUCK MARKET YET SUCH REALITIES DO LITTLE TO DIM THE PARTNERS' OPTIMISTIC FORECASTS FOR THE YEAR TO COME AFTER ALL THE AMERICANS HAVE THEIR REPUTATIONS AT STAKE IT'S HARD FOR PEOPLE TO SEE THAT MONEY IS NOT OUR INCENTIVE RIGHT NOW SAYS MR RUTHERFORD OUR INCENTIVE IS TO DO THE BEST WE POSSIBLY CAN FOR THE COMPANY IT'S A MATTER OF PERSONAL PRIDE 9403040159 940304 INTERNATIONAL BENETTON IS STUNG BY BACKLASH OVER AD CRITICS ACCUSE COMPANY OF EXPLOITING WAR FOR PROFIT BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS TAKEN ABACK BY THE FURIOUS REACTION TO ITS LATEST ADVERTISING CAMPAIGN WHICH FEATURES THE BLOODSOAKED UNIFORM OF A FALLEN CROAT WARRIOR EVEN BENETTON GROUP SPA IS WONDERING WHETHER IT HAS GONE TOO FAR THIS TIME I AM VERY SORRY ABOUT THE NEGATIVE PUBLICITY THE CAMPAIGN IS GENERATING SAYS LUCIANO BENETTON THE GROUP'S PRESIDENT THIS IS NOT WHAT A CORPORATE COMMUNICATIONS CAMPAIGN SHOULD DO IT SHOULD CREATE INTEREST THE ITALIAN KNITWEAR AND CLOTHING GROUP HAS SOUGHT TO AROUSE CONTROVERSY OVER THE PAST DECADE BY PUTTING ITS NAME TO SHOCKING PHOTOGRAPHS THAT HIGHLIGHT SOCIAL AND POLITICAL ISSUES OF THE DAY WHILE THE CAMPAIGNS HAVE OFTEN DRAWN CRITICISM BENETTON'S WORLDWIDE SALES HAVE SOARED ALMOST DOUBLING SINCE 1988 DESPITE RECESSION IN SOME MAJOR MARKETS BUT ITS LATEST FOCUS ON THE MURDEROUS YUGOSLAV CIVIL WAR WHICH BENETTON PLANNED AS A PLEA FOR PEACE HAS PROVOKED A FIERCE BACKLASH THE CAMPAIGN HAS TRIGGERED HOSTILITY TOWARD BENETTON IN PARTS OF EUROPE WHERE CRITICS ACCUSE IT OF CYNICAL EXPLOITATION OF WAR FOR BUSINESS EVEN THE POSTER'S AUTHENTICITY IS NOW UNDER FIRE THE REACTION HAS BEEN FIERCEST IN FRANCE IN PARIS MANY OF THE YUGOSLAV POSTERS HAVE BEEN RIPPED DOWN OR DEFACED WITH SLOGANS SUCH AS BOYCOTT BENETTON AND THIS IS BLOOD FOR MONEY A GOVERNMENT MINISTER HAS EVEN JOINED THE FRAY LUCETTE MICHAUXCHEVRY THE MINISTER RESPONSIBLE FOR HUMANITARIAN AFFAIRS URGED FRENCH PEOPLE NOT TO BUY BENETTON SWEATERS AND TO PULL THEM OFF PEOPLE WHO ARE GOING TO WEAR THEM THE MOTHER OF A BRITISH SOLDIER WHO WAS KILLED BY A SNIPER IN BOSNIA HAS DENOUNCED THE CAMPAIGN AS VERY UPSETTING FOR ME AND MY FAMILY AND THE VATICAN'S OFFICIAL NEWSPAPER HAS DESCRIBED IT AS BEING TANTAMOUNT TO TERRORISM AUTHORITIES IN GERMANY AND SOME PARTS OF SWITZERLAND HAVE RESPONDED WITH OFFICIAL BANS MOREOVER SWISS AND GERMAN TELEVISION THIS WEEK REPORTED THAT THE BATTLE DRESS DEPICTED ISN'T THE UNIFORM WORN BY THE KILLED CROAT SOLDIER NAMED BY BENETTON AS MARINKA GAGRO THE BLOODY TSHIRT DEPICTED IN THE CAMPAIGN HAS A BULLET HOLE IN THE FRONT BUT MR GAGRO'S FATHER TOLD THE TWO TV NETWORKS THAT HIS SON HAD BEEN KILLED BY SHRAPNEL IN THE BACK OF HIS NECK AND THAT HIS CLOTHES HAD BEEN BURIED WITH HIM THIS IS NEVER HIS UNIFORM MR GAGRO SAID IN AN INTERVIEW IN PARIS MR BENETTON SAID THE FUSS OVER THE LATEST CAMPAIGN WON'T PREVENT THE COMPANY CONTINUING TO SEARCH FOR NEW FACTS AND NEW EMOTIONS IN ITS ADVERTISEMENTS BUT HE ADMITTED THAT THE MESSAGE BENETTON HAD HOPED FOR WASN'T GETTING ACROSS AND ADDED THE NEXT CAMPAIGN WILL PROBABLY BE DIFFERENT RESPONDING TO THE TV ALLEGATIONS BENETTON OFFICIALS SAID THE COMPANY HADN'T OBTAINED THE CLOTHES DIRECTLY FROM THE FAMILY BUT HAD RECEIVED THEM FROM THE RED CROSS TOGETHER WITH A LETTER IN SERBOCROAT FROM MR GAGRO'S FATHER WHICH IT ALSO USED IN THE AD MR BENETTON SAID HE DIDN'T HAVE ANY DOUBTS ABOUT THE AUTHENTICITY OF THE CLOTHES DEPICTED AND SUGGESTED MR GAGRO'S FAMILY MAY HAVE BEEN INFLUENCED BY THE JOURNALISTS INTERVIEWING THEM THE LATEST CAMPAIGN FOLLOWS ONE FEATURING PEOPLE WHO HAD STAMPED ONTO THEIR ARMS THE INITIALS HIV FOR THE VIRUS THAT CAUSES AIDS THAT WAS JUST AS HOTLY CONTESTED IN FRANCE WHEN IT RAN LAST FALL ONE MAN DYING OF AIDS RAN HIS OWN COUNTERAD IN A FRENCH NEWSPAPER A PICTURE OF HIS EMACIATED FACE ABOVE THE SLOGAN DURING THE AGONY THE SALES CONTINUE WHATEVER THE MISGIVINGS THE NEGATIVE PUBLICITY HASN'T SO FAR VISIBLY DENTED BENETTON'S CORPORATE GROWTH THE COMPANY'S 1993 RESULTS ARE EXPECTED TO SHOW AN INCREASE IN WORLDWIDE SALES OF ABOUT 10 TO ABOUT 275 TRILLION LIRE 163 BILLION AND BENETTON OFFICIALS SAY NET INCOME SHOULD RISE BY ABOUT THE SAME AS THE PREVIOUS YEAR A WHOPPING 13 MR BENETTON ACKNOWLEDGED THAT THE GROUP HAD BEEN HELPED BY THE SHARP DEVALUATION OF THE ITALIAN LIRA WHICH ENABLED IT TO CUT ITS PRICES ABROAD AND BRING ITS HIGH LABOR COSTS IN ITALY DOWN TO LEVELS CLOSER TO THOSE OF FRANCE WE HAD AN ENORMOUS ADVANTAGE FROM THE DEVALUATION MR BENETTON SAID INTERNATIONALLY BENETTON IS SEEKING TO BOOST ITS SALES IN THE US WHICH CURRENTLY ACCOUNT FOR LESS THAN 10 OF REVENUE AND WHERE THE COMPANY RAN INTO MANY PROBLEMS IN THE 1980S IT IS AIMING TO FOCUS ON BIGGER STORES THAT STOCK MORE OF ITS PRODUCTS MOVING AWAY FROM ITS TRADITIONAL EUROPEAN FORMULA OF SMALLER BOUTIQUES WITH A LIMITED RANGE MORE THAN 20 OF ITS 180 US STORES HAVE BEEN EITHER ENLARGED OR RENOVATED TO DATE AND CIRO TOMAGNANI AN ANALYST AT MERRILL LYNCH IN LONDON SAYS THE STRATEGY ALREADY SEEMS TO BE WORKING AFTER LOSING ABOUT 10 MILLION IN THE US IN 1992 BENETTON IS EXPECTED TO BREAK EVEN THERE IN 1993 MR TOMAGNANI SAYS THE COMPANY IS ALSO MOVING AGGRESSIVELY INTO SOME DEVELOPING COUNTRIES INCLUDING INDIA AND CHINA ESTABLISHING JOINT VENTURES TO PRODUCE PRODUCTS LOCALLY WITH INDIGENOUS RAW MATERIALS MR BENETTON SAID HE EXPECTS TO SIGN AN AGREEMENT WITH A LOCAL CHINESE COMPANY LATER THIS MONTH THAT FORESEES THE OPENING OF AS MANY AS 500 STORES THERE OVER THE NEXT THREE YEARS 9403040157 940304 TECHNOLOGY DNA PLANT TECHNOLOGY'S PATENT CINNAMINSON NJ DNA PLANT TECHNOLOGY CORP SAID IT RECEIVED A NEW PATENT ON GENESUPPRESSION TECHNOLOGY THAT IT USES IN MOST OF ITS GENETIC ENGINEERING DNA SAID THE TRANSWITCH TECHNOLOGY GIVES IT BROADER PATENT PROTECTION ON ITS METHOD FOR GENETICALLY ENGINEERING PLANTS BY TURNING OFF TARGETED GENES DNA HAS USED THE METHOD TO DEVELOP TOMATOES THAT CAN STAY FRESH FOR SEVERAL MONTHS THE COMPANY ALSO RECEIVED A US PATENT FOR CREATING SWEETER PEAS BY SLOWING THE NATURAL CONVERSION OF SUGAR TO STARCH 9403040156 940304 TECHNOLOGY SPECTRAL OBTAINS A US PATENT TORONTO SPECTRAL DIAGNOSTICS INC SAID IT OBTAINED A US PATENT FOR ITS MAIN PRODUCT A DIAGNOSTIC KIT AIMED AT DETERMINING WHETHER OR NOT A PATIENT HAS SUFFERED A HEART ATTACK SPECTRAL SAID THE KIT WHICH IDENTIFIES CERTAIN PROTEINS USUALLY PRODUCED BY THE BODY DURING A HEART ATTACK BY APPLYING DROPS OF BLOOD TO A PRETREATED CARD IS UNDERGOING CLINICAL TRIALS IN CANADA AND THE US TORONTOBASED SPECTRAL IS DEVELOPING A RANGE OF CARDIAC DIAGNOSTIC TESTS 9403040155 940304 COMMODITIES GRAIN PRICES SKID AS GROWING TRADE TENSIONS WITH JAPAN SPUR CONCERNS OVER US CROP SALES BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN PRICES FELL AMID SPECULATION THAT GROWING TRADE TENSIONS WITH JAPAN MIGHT DISRUPT ITS PURCHASES OF US CROPS THE SPECULATION WAS TRIGGERED BY PRESIDENT CLINTON'S MOVE YESTERDAY TO RESURRECT PART OF A TRADE LAW ENABLING THE ADMINISTRATION TO IMPOSE TARIFFS ON NATIONS THAT BLOCK US PRODUCTS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY DROPPED 105 CENTS A BUSHEL TO SETTLE AT 67325 A BUSHEL THE CORN CONTRACT FOR MAY DELIVERY FELL FIVE CENTS A BUSHEL TO 286 A BUSHEL AND THE MAY WHEAT CONTRACT SANK FOUR CENTS A BUSHEL TO 34075 A BUSHEL US AGRICULTURE IS PARTICULARLY VULNERABLE TO RETALIATION BECAUSE IT IS ONE OF THE FEW AMERICAN INDUSTRIES THAT RUNS A BIG TRADE SURPLUS WITH JAPAN ANY DISRUPTION WOULD GIVE OTHER GRAIN EXPORTERS SUCH AS CHINA THE OPPORTUNITY TO WIN PART OF THE HUGE JAPANESE MARKET FOR FOREIGN GRAIN ALTHOUGH JAPAN IS THE BIGGEST FOREIGN BUYER OF US FARM GOODS IT HAS AN OVERALL TRADE SURPLUS WITH THE US OF ROUGHLY 59 BILLION BARRING A TRADE WAR JAPAN IS EXPECTED TO BUY ABOUT 492 MILLION BUSHELS OF US CORN DURING THE YEAR ENDING AUG 31 WHICH REPRESENTS ABOUT 37 OF EXPECTED US CORN EXPORT VOLUME SAID DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO JAPAN IS ALSO EXPECTED TO IMPORT ABOUT 134 MILLION BUSHELS OF US SOYBEANS DURING THE SAME PERIOD WHICH WOULD REPRESENT ABOUT 22 OF US SOYBEANEXPORT VOLUME WASHINGTON FORECASTS JAPAN TO SPEND 89 BILLION ON US AGRICULTURAL EXPORTS MASSIVE SELLING BY COMMODITYFUND MANAGERS WAS MOSTLY TO BLAME FOR THE PRICE PLUNGE IN THE AGRICULTURAL PITS STEVEN BRUCE FLOOR MANAGER AT GELDERMANN INC CHICAGO SAID THE COMMODITY FUNDS WHICH HE CALLED BLIND MONSTERS OVERREACTED UNDER THE TRADE LAW THE ADMINISTRATION PROBABLY WOULDN'T BE ABLE TO LAUNCH ANY SANCTIONS AGAINST JAPAN FOR MORE THAN A YEAR AND MOST TRADERS BELIEVE THE CLINTON ADMINISTRATION WOULD TRY TO AVOID EMBROILING US FARM EXPORTS WHAT HAPPENED WAS PSYCHOLOGICAL SPILL OVER SAID MR BASSE OF AGRESOURCE CROP PRICES WERE VULNERABLE TO A BIG DROP BECAUSE US EXPORTS ARE LAGGING BEHIND EXPECTATIONS AT A TIME WHEN SOUTH AMERICA IS BEGINNING TO HARVEST A RECORD SOYBEAN CROP US CORNEXPORT VOLUME LAST WEEK WAS ABOUT HALF THE PACE FORECAST BY TRADERS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES DRIFTED LOWER IN LISTLESS TRADING CRUDE OIL FOR APRIL DELIVERY WAS DOWN ONE CENT TO SETTLE AT 1475 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE EVEN HEATINGOIL FUTURES FAILED TO DRAW SUPPORT DESPITE THE LATEST WINTER STORM THAT HIT NEW YORK TRADERS WERE CAUTIOUS AHEAD OF THE WEEKEND MEETING OF THE GULF COOPERATION COUNCIL WHOSE MEMBERS ARE ARAB OIL PRODUCERS ALTHOUGH LITTLE NEWS IS EXPECTED FROM THE MEETING IT WILL BE WATCHED FOR CLUES TO ANY CHANGE IN THE POSITION OF SAUDI ARABIA WHICH CONTINUES TO PRODUCE EIGHT MILLION BARRELS A DAY DESPITE WEAK OIL MARKETS COTTON COTTONFUTURES PRICES CONTINUED TO WEAKEN AFTER THEIR LONG BULL RUN AT NEW YORK'S COTTON EXCHANGE COTTON FOR MAY DELIVERY WAS DOWN 101 CENTS TO 7597 CENTS A POUND AS OF MONDAY COTTON PRICES ARE UP MORE THAN 40 SINCE LATE NOVEMBER BUT IN RECENT DAYS PRICES HAVE GIVEN BACK SOME OF THOSE GAINS THIS WEEK'S DECLINE MAINLY REFLECTS PROFITTAKING BY TRADERS WHO HAVE BEEN LONG WITH WAGERS THAT PRICES WOULD RISE THROUGHOUT MUCH OF COTTON'S CLIMB SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON YESTERDAY NEWS REPORTS SUGGESTING THAT INDIA MAY REINSTATE THE ABILITY OF ITS EXPORTERS TO SHIP OUT COTTON TO MEET PREVIOUSLY ARRANGED SUPPLY COMMITMENTS HELPED TO PRESSURE PRICES LOWER SHE SAID 9403040154 940304 INTERNATIONAL WORLD ECONOMY CRITICS OF US STANCE ON JAPAN WANT CLINTONITES TO PICK FIGHTS MORE SHREWDLY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE WHOLE JAPAN IS ONE OF THE POOREST AND MOST BARREN LANDS IN ALL THE ORIENT FOR THE PEOPLE HARDLY CARRY OUT ANY TRADE THINGS HAVE CHANGED A BIT SINCE AN ITALIAN JESUIT WROTE THOSE WORDS FOUR CENTURIES AGO THE PROBLEM TODAY MOST OF THE WORLD CONTENDS IS TOO MUCH JAPANESE TRADE OF A ONEWAY NATURE A LOT GOING OUT AND NOT ENOUGH GOING IN OTHER NATIONS FIND THE IMBALANCE ONEROUS AND THE US HAS CHOSEN STRONG MEASURES TO INJECT EQUALITY INTO THIS COMMERCE DANGEROUSLY STRONG RESPOND MANY WORRIED AMERICAN AUTHORITIES ON JAPAN THOUGH THE CLINTON ADMINISTRATION THINKS IT'S DOING RIGHT THESE EXPERTS FIND THE HARSH NEW METHODS TROUBLING ON TWO GROUNDS THEY COULD DAMAGE LONGTERM US POLITICAL ECONOMIC AND SECURITY INTERESTS AND THEY WON'T SOLVE THE PROBLEM THAT'S NOT THE OFFICIAL WASHINGTON LINE CLINTON OFFICIALS CALL JAPAN AN ECONOMIC OUTLIER THAT EXPLOITS THE GLOBAL TRADING SYSTEM WHILE REFUSING TO PAY ITS FAIR SHARE OF THE RUNNING COSTS THEY WANT THE JAPANESE NATION TO ACT LIKE A GROWNUP SO THEY TRY HARSHER TACTICS TO FORCE CHANGES WHILE INSISTING THIS WON'T CORRODE THE REST OF A VITAL RELATIONSHIP JUST YESTERDAY THE CLINTON ADMINISTRATION ANNOUNCED A DECISION TO ACTIVATE A PROCESS OF TRADE REPRISALS JAPAN'S 132 BILLION ANNUAL TRADE SURPLUS 59 BILLION OF THAT WITH THE US CLEARLY IS MORE THAN TRADING PARTNERS WANT TO BEAR NOR HAVE PAST EFFORTS TO RESOLVE DISPUTES DONE MUCH TO SHRINK THE SURPLUS DESPITE PARTIAL SUCCESSES SO WHAT WOULD THE CRITICS DO DIFFERENTLY QUITE A LOT WHITE HOUSE OFFICIALS MIGHT RESPOND THEY'VE HEARD AND TRIED IT ALL BEFORE YET DISSENTERS RECOMMEND THESE ADJUSTMENTS TO US POLICY CONCENTRATE ON BROAD ECONOMIC ISSUES THE CARNEGIE GROUP WANTS JAPAN TO ENACT BOTH A MULTIYEAR ECONOMIC STIMULATION PACKAGE AND A CONCRETE PROGRAM FOR ABOLISHING REGULATIONS THAT RESTRICT FOREIGN BUSINESS THERE THIS WOULD RAISE CONSUMPTION INCREASE IMPORTS AND DULL THE EXPORT MACHINE WITHOUT RISKING TRADE RETALIATION BY OTHERS A SIMILAR PART OF THE CLINTON MESSAGE OFTEN GETS LOST IN THE FUROR OVER SPECIFIC TRADE MATTERS DROP QUANTITATIVE MEASURES CLINTON OFFICIALS WANT OBJECTIVE CRITERIA LIKE MARKET SHARE TO MEASURE WHETHER JAPAN IS OPEN TO FOREIGN GOODS IN A FAIR MANNER CRITICS SAY THIS SUGGESTS THE GOVERNMENT SHOULD TELL JAPANESE COMPANIES AND CONSUMERS WHAT TO BUY STRENGTHENING THE VERY PROTECTIONIST BUREAUCRATS WHOM THE US WANTS TO WEAKEN THOUGH THE WHITE HOUSE CLAIMS OTHERWISE DISSENTERS INSIST THE REALITY WOULD BE MANAGED TRADE WITH SPECIFIC GOALS BECOMING MANDATORY TARGETS CAUSING ENDLESS FRICTION SUPPORT PRIME MINISTER MORIHIRO HOSOKAWA AND HIS FELLOW REFORMERS HE WANTS TO DEREGULATE HIS ECONOMY AND OPEN A CLOSED POLITICAL SYSTEM IF HE SUCCEEDS INTERNAL CHANGES SHOULD THEN BRING PROGRAMS LIKE THOSE THE US SEEKS WITHOUT FOSTERING A NATIONALIST RESENTMENT OF THE US OTTO LAMBSDORFF FORMER GERMAN ECONOMICS MINISTER CALLS MR CLINTON'S COOLNESS TO THE HOSOKAWA GOVERNMENT A TERRIBLE MISTAKE PICK TRADE DISPUTES MORE SELECTIVELY DISSENTERS AGREE THAT JAPAN PRACTICES ALL SORTS OF PROTECTIONIST OUTRAGES BUT SOME CRITICS WANT THE US TO SELECT A SHORT LIST OF GRIEVOUS CASES AND SEEK REMEDIES AS FIRMLY YET QUIETLY AS POSSIBLE ABANDONING OTHER GRIEVANCES FOR A WHILE THIS COULD INCLUDE TARGETED REPRISALS IN EGREGIOUS CASES AS WITH THE TELEPHONE TROUBLES OF MOTOROLA INC CRITICS SAY THE CURRENT BLUNDERBUSS APPROACH OVERLOADS THE SYSTEM WHILE EVEN TOTAL SUCCESS WOULDN'T DO MUCH FOR THE TRADE DEFICIT TELL THE PRESIDENT TO SHUT UP MR CLINTON SHOULD REMAIN ABOVE THE FRAY RATHER THAN BE A GARRULOUS SALESMAN OF AUTO PARTS OR LIFE INSURANCE LET TRADE NEGOTIATOR MICKEY KANTOR AND OTHERS BE THE POLITICAL HIT MEN BUT TONE HIM DOWN TOO THE PROPER CLINTON ROLE IS THAT OF STATESMAN APPLYING DISCREET PERSUASION WHEN USEFUL FOR THE SAKE OF A GREATER USJAPAN CAUSE CRITICS BELIEVE AMERICA NEEDS MANY YEARS OF CLOSE JAPANESE COOPERATION ON CRUCIAL ISSUES NORTH KOREAN NUCLEAR AMBITIONS AN EMERGING CHINA GLOBAL PROBLEMS OF ENVIRONMENT AND POVERTY BEATING ON TOKYO ABOUT SPECIFIC COMMERCIAL DISPUTES WON'T SOLVE BROADER ECONOMIC PROBLEMS BUT COULD TURN JAPAN INTO AN ALLY LIKE FRANCE UNDER DE GAULLE SAYS ONE FORMER US AMBASSADOR AND THAT'S NOT REALLY WHAT WASHINGTON NEEDS 9403040153 940304 BOEING CO TO ASSIST TAIWAN WITH NEW LAB FOR QUALITY CONTROL SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN WITH TECHNOLOGICAL HELP FROM BOEING CO TAIWAN OPENED ITS FIRST QUALITY CONTROL LABORATORY AS PART OF A GOVERNMENTBACKED DRIVE TO BROADEN THE HIGHTECH INDUSTRY THE 3 MILLION QUALITY ASSURANCE TESTING AND INSPECTION LABORATORY WILL PLAY A CORNERSTONE ROLE IN TAIWAN'S EFFORTS TO DEVELOP ITS AEROSPACE INDUSTRY SAID RICHARD LIN DIRECTOR OF THE INDUSTRIAL TECHNOLOGY RESEARCH INSTITUTE'S CENTER FOR AVIATION AND SPACE TECHNOLOGY THE LAB IS THE FIRST OF ITS KIND THAT THE BOEING COMMERCIAL AIRPLANE GROUP HAS HELPED ESTABLISH OUTSIDE OF THE US INSTITUTE OFFICIALS TOLD A NEWS CONFERENCE BEFORE THE LAB WAS ESTABLISHED AEROSPACE PARTS EXPORTERS HAD TO SEND THEIR PRODUCTS OVERSEAS TO THEIR BUYERS FOR QUALITY CHECKS BEFORE SELLING THEM THE LAB IS CERTIFIED BY BOEING AND WILL ALSO SEEK CERTIFICATIONS FROM OTHER INTERNATIONAL AIRPLANE MAKERS MR LIN SAID CHINESE AEROSPACE OFFICIALS HAVE ASKED BOEING TO HELP IT BUILD A SIMILAR LAB SAID BOEING EXECUTIVE NELSON SETO THE TAIWAN GOVERNMENT EXPECTS ANNUAL AEROSPACE PRODUCTION TO REACH 6 BILLION IN 2000 9403040152 940304 LCI AGREES TO BUY COMPANY MCLEAN VA LCI INTERNATIONAL INC SAID IT REACHED A TENTATIVE AGREEMENT TO ACQUIRE A CALIFORNIA LONGDISTANCE COMPANY TERMS WEREN'T DISCLOSED THE TELECOMMUNICATIONS COMPANY ALSO ANNOUNCED AN EXTENSION OF ITS BANKCREDIT FACILITY TO 200 MILLION FROM 150 MILLION THE COMPANY SAID ADDITIONAL CREDIT WILL GO TOWARD FURTHER EXPANSION OF ITS BUSINESS LCI SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE CLOSELY HELD TM SEPULVEDA INC AND ITS AFFILIATE PREMIUM ACCESS INC BOTH OF LOS ANGELES THE TWO COMPANIES HAVE ABOUT 10 MILLION IN COMBINED REVENUE 9403040151 940304 USDA SEEKS WAYS TO IMPROVE NUTRITION FROM FOOD STAMPS TO BREASTFEEDING BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THE AGRICULTURE DEPARTMENT PREPARING AN ATTACK ON MALNUTRITION IS CONSIDERING URGING CONGRESS TO GIVE WOMEN A TAX BREAK IF THEY BREASTFEED THEIR NEWBORNS UP TO SIX MONTHS OTHER OPTIONS UNDER REVIEW IN THE GOVERNMENT'S EFFORT TO IMPROVE THE AMERICAN DIET INCLUDE ENCOURAGING MORE RESTAURANTS TO ACCEPT FOOD STAMPS TO FEED THE HOMELESS AND SECURING TRANSPORTATION FOR RURAL ELDERLY TO ENSURE THAT THEY EAT AT LEAST ONE WHOLESOME MEAL A DAY FOOD COMPANIES ALSO SHOULD BE URGED TO DEVELOP MORENUTRITIOUS PRODUCTS AND THE IMPACT OF THEIR ADVERTISING COULD BE MONITORED SUGGESTS A DRAFT POLICY DOCUMENT MAKING ITS WAY THROUGH THE USDA'S FOOD AND NUTRITION SERVICE WHILE THERE'S NO CERTAINTY THAT SUCH IDEAS WILL BE PROPOSED AND ENACTED AND EVERY LIKELIHOOD THAT SOME WOULD ENCOUNTER STIFF RESISTANCE THE DOCUMENT PROVIDES A MAP OF POLICYMAKERS' THINKING ABOUT AN IMPORTANT ADJUNCT TO HEALTHCARE AND WELFARE REFORM ALTHOUGH ITS GENESIS WAS AN INTERNATIONAL NUTRITION CONFERENCE TWO YEARS AGO THE DEPARTMENT'S US PLAN OF ACTION FOR NUTRITION THUS FAR HAS RECEIVED LITTLE PUBLIC ATTENTION COMMENTING ON THE DOCUMENT A COPY OF WHICH WAS OBTAINED BY THE WALL STREET JOURNAL A SPOKESMAN FOR ASSISTANT SECRETARY ELLEN HAAS WHO OVERSEES THE NUTRITION SERVICE CALLED IT EXTREMELY PRELIMINARY AND SAID IT WAS CERTAIN TO BE SIGNIFICANTLY AND EXTENSIVELY REVISED BEFORE BEING PUT OUT FOR PUBLIC COMMENT NONE OF THE IDEAS IS REFLECTED IN THE DEPARTMENT'S FISCAL 1995 BUDGET THE SPOKESMAN ADDED MUCH OF THE DOCUMENT FOCUSES ON WAYS TO CLOSE GAPS IN THE GOVERNMENT'S ATTEMPTS TO REDUCE MALNUTRITION IT SAYS THAT WHILE DIETS HAVE IMPROVED ADDITIONAL STEPS COULD PRODUCE SUBSTANTIAL HEALTH GAINS LEADING TO IMPROVEMENTS IN INDIVIDUALS' QUALITY AND LENGTH OF LIFE UNDERPINNING THE ACTION PLAN IS AN ASSUMPTION THAT FAR TOO MANY PEOPLE AREN'T RECEIVING PROPER NOURISHMENT OFTEN BECAUSE OF IGNORANCE OR POVERTY THE DOCUMENT CALLS FOR A CONCERTED EDUCATIONAL PROGRAM BEGINNING WITH CHILDREN FOUR YEARS OLD IN PART TO SEE THAT THE NEW NUTRITION FOOD LABELS NOW APPEARING IN GROCERY STORES ACROSS THE COUNTRY HELP CONSUMERS MAKE BETTER BUYING DECISIONS SOME PROPOSALS PRESUMABLY COULD BE IMPLEMENTED WITH LITTLE COST WHILE OTHERS WOULD REQUIRE HUNDREDS OF MILLIONS OF DOLLARS ACCORDING TO ACCOMPANYING COST ESTIMATES AMONG THE MORE COSTLY ITEMS MORE THAN 100 MILLION TO IMPROVE WHAT'S CALLED HOUSEHOLD FOOD SECURITY THAT REFERS TO A PANOPLY OF WAYS TO ADD TO THE FOODPURCHASING POWER OF HOUSEHOLDS WITH LIMITED INCOMES INCLUDING EXPANDING THE CURRENT FOODSTAMP PROGRAM TO COUNTER WHAT IT CALLS A BOTTLEFEEDING CULTURE THE ACTION PLAN SUGGESTS USING GOVERNMENT OFFICES AS MODELS OF EMPLOYER SUPPORT OF BREASTFEEDING WOMEN THE DOCUMENT CALLS FOR EVALUATING CURRENT EFFORTS IN THE WORKPLACE TO SUPPORT BREASTFEEDING TO SEE WHAT REDUCTIONS IN HEALTHCARE COSTS AND ABSENTEEISM MIGHT RESULT AND IT SUGGESTS INCLUDING BREASTFEEDING IN HIGHSCHOOL CURRICULUM AND ENCOURAGING SCHOOLS TO PROMOTE INSCHOOL BREASTFEEDING BY STUDENT MOTHERS AMONG THE MORERADICAL SUGGESTIONS WOULD BE AMENDING THE CURRENT TAX CODE TO PROVIDE A MATERNITY ALLOWANCE FOR WOMEN WHO FULLY BREASTFEED THEIR INFANTS FOR FOUR TO SIX MONTHS A RELATED IDEA CHANGE THE FAMILY LEAVE ACT SO THAT WORKING MOTHERS CAN TAKE A MINIMUM OF FOUR MONTHS OF MATERNITY LEAVE THE LAW NOW ALLOWS A THREEMONTH UNPAID LEAVE THE DEPARTMENT'S GOAL SHOULD BE TO INCREASE TO AT LEAST 75 THE PROPORTION OF MOTHERS WHO BREASTFEED NEWBORNS AND TO HAVE AT LEAST 50 CONTINUE TO BREASTFEED UNTIL INFANTS ARE SIX MONTHS OLD THE PAPER'S DRAFTERS ARGUE IN A RELATED MATTER THE DOCUMENT SUGGESTS AN INTERAGENCY REVIEW TO CONSIDER WAYS TO BETTER MONITOR ADVERTISING CAMPAIGNS BY MAKERS OF INFANT FORMULA FOR FALSE AND MISLEADING STATEMENTS INCLUDING THE IMPRESSION THAT FORMULA IS AS GOOD AS MOTHER'S MILK ON ANOTHER ADVERTISING FRONT THE REPORT'S DRAFTERS SAID THEY ARE LOOKING FOR WAYS TO ATTACK MUCH NUTRITION MISINFORMATION AND FADDISM/QUACKERY IN THE BILLIONDOLLAR NUTRITION/WEIGHTCONTROL MARKETPLACE THE PANEL ALSO INDICATED IT WANTS TO MAKE SURE THAT HEALTH CLAIMS FOR FOODS ARE SUPPORTED BY SIGNIFICANT SCIENTIFIC AGREEMENT ALTHOUGH THE DOCUMENT GIVES NO SPECIFICS IT CITES REGULATORY IMPEDIMENTS THAT PREVENT FOOD COMPANIES FROM PRODUCING MORE NUTRITIOUS PRODUCTS AND SUGGESTS ELIMINATING THOSE BARRIERS THE DOCUMENT ALSO FAVORS STEPS TO IMPROVE THE TASTE OF LOWFAT PRODUCTS ANOTHER SECTION CALLS FOR BETTER LINKS BETWEEN NUTRITION AND AGRICULTURAL POLICY AND SUGGESTS POSSIBLY REQUIRING A NUTRITION IMPACT STATEMENT WHEN CHARTING FEDERAL FARM POLICIES FINALLY THE REPORT CALLS FOR A HARD LOOK AT THE SCHOOL LUNCH PROGRAM LONG A TARGET OF MANY NUTRITIONISTS WHO QUESTION HOW WELL IT IS FEEDING YOUNG PEOPLE AMONG THE IDEAS FOR IMPROVING IT IS TO HAVE STATES ESTABLISH MANDATORY NUTRITION COMPETENCIES FOR TEACHERS AND FOODSERVICE STAFFS IT ALSO URGES STATES AND LOCAL PROGRAMS TO REMOVE THE STIGMA ASSOCIATED WITH GETTING A FREE LUNCH SO THAT MORE NEEDY AVAIL THEMSELVES OF SUCH AID 9403040150 940304 FLUOR UNIT RECEIVES CONTRACT IRVINE CALIF FLUOR CORP'S FLUOR DANIEL UNIT RECEIVED A CONTRACT FROM BRITISH UNITS OF CHEVRON CORP AND DUPONT CO VALUED AT MORE THAN 330 MILLION TO HELP DEVELOP THE BRITANNICA GAS FIELD IN THE UK NORTH SEA FLUOR WILL PROVIDE ENGINEERING PROCUREMENT AND CONSTRUCTIONMANAGEMENT SERVICES TO BUILD AN ONSHORE GASPROCESSING PLANT FOR A JOINT VENTURE BETWEEN CHEVRON UK LTD AND CONOCO UK LTD THE PROJECT IS SCHEDULED TO BE COMPLETED IN LATE 1998 9403040149 940304 MARKETING & MEDIA PHILIPS UNIT IN NEW VENTURE NEW YORK PHILIPS MEDIA AND CLOSELY HELD R/GA DIGITAL STUDIOS INC A VISUAL EFFECTS COMPANY HAVE FORMED AN ENTERTAINMENT COMPANY CALLED MOMENTUM MEDIA THE NEW VENTURE WILL BE BASED IN NEW YORK AND WILL DEVELOP AND MARKET INTERACTIVE GAMES PHILIPS MEDIA A UNIT OF PHILIPS ELECTRONICS NV MARKETS KARAOKE MACHINES AND COMPACT DISK INTERACTIVE PLAYERS AND ALSO PRODUCES COMPACT DISKBASED SOFTWARE FOR VARIOUS INTERACTIVE MACHINES 9403040148 940304 INTERNATIONAL LESSONS FOR DOING BUSINESS IN VIETNAM MR TRUC SUGGESTS PARTNERS AND PATIENCE BY BARRY WAIN STAFF REPORTER OF THE WALL STREET JOURNAL HO CHI MINH CITY VIETNAM NGUYEN TRUNG TRUC'S FIRST BUSINESS VENTURE IN VIETNAM ALMOST WIPED HIM OUT A 300000 SHIPMENT OF PHARMACEUTICAL PRODUCTS THAT HE FINANCED WAS IMPORTED AND SOLD BUT HIS CUSTOMER A STATEOWNED CORPORATION REFUSED TO REPAY HIM WORSE COMPANY OFFICIALS SPREAD RUMORS THAT HE WAS WORKING FOR THE US CENTRAL INTELLIGENCE AGENCY LEGAL ACTION SEEMED FUTILE GIVEN THE UNRELIABILITY OF THE LOCAL COURTS IN DESPERATION MR TRUC A VIETNAMESEBORN AUSTRALIAN PERSUADED HIS POLITICALLY CONNECTED SISTER TO USE HER CONTACTS IN HANOI TO PUT PRESSURE ON THE COMPANY AFTER WEEKS OF SLEEPLESS NIGHTS THE PAYMENT FINALLY WAS MADE MR TRUC EVEN ENDED UP MAKING A 10000 PROFIT ON THE DEAL WHICH TOOK PLACE IN 1990 UNDER THE BANNER OF THE HONG KONGBASED PEREGRINE MERCHANT BANKING GROUP HE HAS GONE ON TO BECOME ONE OF THE MOST SUCCESSFUL BUSINESSMEN IN VIETNAM I WAS STILL A LITTLE BIT GREEN THEN HE SAYS BUT I LEARNED AS AN ETHNIC VIETNAMESE BORN IN THE MEKONG DELTA PROVINCE OF MY THO 42YEAROLD MR TRUC IS HARDLY A TYPICAL FOREIGN INVESTOR AFTER ALL HE SPEAKS VIETNAMESE AND HAS THE ADVANTAGE OF BEING ABLE TO CALL ON FRIENDS AND FAMILY FOR HELP HIS PARENTS POOR FARMERS LONG RETIRED AND MOST OF HIS 10 BROTHERS AND SISTERS STILL LIVE IN THE COUNTRY BUT IN MANY WAYS HIS EXPERIENCE REFLECTS WHAT ANY INVESTOR FACES WHEN ENTERING VIETNAM WHICH IS TRYING TO CREATE A MARKET ECONOMY WHILE THE COMMUNIST PARTY RETAINS POLITICAL CONTROL MR TRUC WENT TO AUSTRALIA ON A SCHOLARSHIP IN 1972 WHEN HE WAS 20 TO STUDY ECONOMICS HE HAD RETURNED TO VISIT VIETNAM ONLY ONCE BEFORE LAUNCHING HIS BUSINESS HERE HIS INTEREST WASN'T IN BEING A TRADER OR MIDDLEMAN FOR MULTINATIONAL CORPORATIONS HE AND HIS WIFE DEIDRE LOW 32 YEARS OLD A MALAYSIAN ACCOUNTANT SET OUT TO BUILD WHAT THEY HOPED WOULD BECOME A DIVERSIFIED BUSINESS EMPIRE SINCE 1991 THEY HAVE TAKEN ON A PARTNER THE PEREGRINE GROUP PERSUADED BY THE GROUP'S DEEP POCKETS AND ITS CONNECTIONS TO AN ASIAWIDE NETWORK WITH PEREGRINE THEY FORMED PEREGRINE CAPITAL VIETNAM LTD OR PCV OWNED 40 BY MR TRUC AND HIS WIFE AND 60 BY THE PEREGRINE GROUP WITH MR TRUC AS THE MANAGING DIRECTOR PCV IS PURSUING VENTURES IN MARKETING AND DISTRIBUTION MANUFACTURING FINANCIAL SERVICES AND PROPERTY PCV AND ITS PARTNERS HAVE ACQUIRED THE AGENCY FOR A NUMBER OF INTERNATIONAL BRAND NAMES AMONG THEM MERCEDESBENZ CARS CIBAGEIGY AND BAYER PHARMACEUTICALS AND KENWOOD CONSUMERELECTRONIC EQUIPMENT THE CONCERN IS ALSO AWAITING GOVERNMENT APPROVAL FOR A JOINT VENTURE WITH CIBAGEIGY OF SWITZERLAND TO BUILD A PLANT AND MANUFACTURE ITS PHARMACEUTICALS AS THE LOCAL MARKET DEVELOPS FOR OTHER ITEMS PCV IS DISTRIBUTING IT HOPES TO ENTER SIMILAR PRODUCTION ARRANGEMENTS THROUGH VIETNAMESE BUSINESS ASSOCIATES AND HIS FAMILY MR TRUC EFFECTIVELY CONTROLS DAI NAM BANK WHOSE CAPITAL HE HAS INCREASED TO 25 MILLION FROM 500000 PCV INTENDS TO USE THE BANK TO OBTAIN A SEAT ON VIETNAM'S FIRST STOCK EXCHANGE EXPECTED TO OPEN IN RUDIMENTARY FORM THIS YEAR AND SET UP BROKERAGE MERCHANTBANKING AND RELATED OPERATIONS IN REAL ESTATE PCV SAYS IT HAS BEEN CRIMPED TEMPORARILY BY A SHORTAGE OF EXPERIENCED STAFF SO IT IS POISED TO BUY STAKES IN FIVE PROJECTS A MIX OF APARTMENTS AND OFFICE BUILDINGS SOME NEARING COMPLETION OTHERS IN THE PLANNING STAGES IN HO CHI MINH CITY I'VE HAD THE OPPORTUNITY OF VERY CHEAP ENTRY INTO THESE FIELDS SAYS MR TRUC MY VISION IS TO CREATE A VIETNAMESE VERSION OF A BRITISH TRADING HOUSE SUCH AS JARDINE MATHESON WITH OFFICES IN HANOI AND HO CHI MINH CITY PCV AND PARTNERS EMPLOY DIRECTLY ABOUT 70 STAFF 10 OF THEM EXPATRIATES INCLUDING SEVEN OVERSEAS VIETNAMESE MORE OVERSEAS VIETNAMESE ARE BEING RECRUITED TO FILL WHAT MR TRUC CALLS THE GAP BETWEEN HIM AND LOCAL MANAGERS DAI NAM BANK WITH FOUR BRANCHES IS STAFFED BY 150 LOCALS WHILE DECLINING TO PROVIDE DETAILS MR TRUC SAYS PCV MADE A PROFIT IN 1993 ITS SECOND YEAR OF OPERATION IN CONTRAST WITH SOME OTHER OVERSEAS VIETNAMESE THE SOFTSPOKEN MR TRUC HAS KEPT A LOW PROFILE FOR THE PAST FOUR YEARS TRYING TO AVOID POLITICAL PITFALLS AND CONVINCE THE AUTHORITIES THAT HE IS A SERIOUS LONGTERM INVESTOR FOR INSTANCE MR TRUC AND MS LOW STARTED RUNNING TOURS TO VIETNAM FROM SOUTHEAST ASIA IN 1991 BUT WHEN IT BECAME APPARENT THAT MANY OF THE VISITORS WERE MORE INTERESTED IN CAROUSING IN HOSTESS CLUBS THAN SIGHTSEEING THEY CLOSED THE SERVICE ONE THING THAT CONTRADICTS HIS EFFORTS TO BLEND IN IS HIS PENCHANT FOR VINTAGE CARS HE OWNS A FLEET OF 15 RANGING FROM A 1902 CITROEN TO A 1962 MG SPORTS CAR IT'S MY WEAKNESS HE SAYS THOUGH HE OFTEN RESORTS TO A MOTORBIKE IN THE EVENING TO BEAT TRAFFIC CONGESTION ALTHOUGH MR TRUC IS RELUCTANT TO DISCUSS HIS RELATIONSHIP WITH VIETNAMESE LEADERS IT IS OBVIOUS THAT HE HAS FRIENDS IN HIGH PLACES FOR A START PCV OCCUPIES A COLONIALSTYLE BUILDING IN THE GROUNDS OF THE FORMER PRESIDENTIAL PALACE IN HO CHI MINH CITY THE PALACE IS ADMINISTERED BY THE PRIME MINISTER'S DEPARTMENT AN ASSOCIATED COMPANY OF WHICH OWNS PART OF THE LOCAL SALES ARM FOR MERCEDESBENZ THE PRIME MINISTER'S DEPARTMENT IS ALSO THE PARTNER IN A PROPOSED APARTMENT BUILDING ON A CORNER OF THE PALACE GROUNDS THAT MR TRUC IS NEGOTIATING ON BEHALF OF MALAYSIAN BUSINESSMAN DATUK TAN CHIN NAM DATUK TAN OWNS THE 30 OF DAI NAM NOT HELD BY MR TRUC AND MS LOW IF THE 120APARTMENT COMPLEX IS APPROVED PCV MAY BUY INTO IT I RARELY ACCEPT PURELY ADVISORY WORK SAYS MR TRUC I ADVISE THE PEOPLE WE WOULD LIKE TO BE OUR PARTNERS AND HOPE WE CAN MAKE A PROJECT WORK AND TAKE MAYBE A 20 SHARE OR MORE IN IT MR TRUC HAS SOLIDIFIED HIS RELATIONSHIP WITH THE GOVERNMENT BY PARTICIPATING IN WORKING GROUPS TO MAKE RECOMMENDATIONS ABOUT A STOCK EXCHANGE AND WRITE THE RULES FOR BUILDOPERATETRANSFER INVESTMENTS THE COUNTRY IS SEEKING AS FOR THE FUTURE HE SAYS PCV WANTS TO START A VIETNAM FUND PROBABLY LATE THIS YEAR FOR ABOUT 50 MILLION INITIALLY IT WOULD INVEST IN PCV'S PROJECTS AS WELL AS OTHERS INVOLVING FOREIGN PARTNERS 9403040147 940304 INTERNATIONAL BRITISH TELECOM PICKS 5 SUPPLIERS FOR VIDEO TRIALS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH TELECOMMUNICATIONS PLC PICKED FIVE SUPPLIERS INCLUDING APPLE COMPUTER INC AND ALCATELALSTHOM SA FOR THE FIRST TRIALS IN EUROPE OF VIDEOONDEMAND ONE OF A NEW CROP OF SERVICES ON WHICH BT SAID IT MAY SPEND BILLIONS OF POUNDS COMPUTER MAKER APPLE AND FRENCH TELECOMMUNICATIONSEQUIPMENT GIANT ALCATEL WERE THE TWO UNEXPECTED NAMES ON BT'S SUPPLIER LIST RELEASED AS THE COMPANY ANNOUNCED DETAILS OF ITS PLANS TO TEST MARKET THE NEW VIDEO SERVICES IN BRITAIN THIS YEAR THE OTHER NAMED SUPPLIERS WERE AS EXPECTED ORACLE CORP NCUBE CORP AND NORTHERN TELECOM LTD BT DIDN'T DISCLOSE THE NAMES OF THE LOSING BIDDERS BUT BT OFFICIALS HAVE SAID PREVIOUSLY THAT THEY HAD BEEN TALKING WITH INTERNATIONAL BUSINESS MACHINES CORP DIGITAL EQUIPMENT CORP PHILIPS ELECTRONICS NV AND OTHERS THE CONTRACTS THE VALUE OF WHICH BT DECLINED TO DISCLOSE WERE AMONG THE MOST HOTLY CONTESTED IN THE EUROPEAN TELECOMMUNICATIONS INDUSTRY NOT FOR THEIR CASH VALUE WHICH IS PROBABLY SMALL BUT FOR THE INSIDE TRACK TO FUTURE CONTRACTS THAT IT MAY PROVIDE IF BT DECIDES TO DEPLOY A COMMERCIAL VIDEO SERVICE IN A FEW YEARS A NEW ROUND OF OPEN BIDDING WOULD BE HELD IF THAT HAPPENS BT SAID FOR THE TRIALS NCUBE FOSTER CITY CALIF IS SUPPLYING THE MAIN COMPUTER THAT RUNS THE NEW SERVICE USING ORACLE'S SOFTWARE NORTHERN TELECOM OF CANADA AND ALCATEL ARE PROVIDING EQUIPMENT TO MANAGE THE TRANSMISSION OF VIDEO SIGNALS FROM THE COMPUTER TO EACH SUBSCRIBER'S HOMENORTHERN WITH TECHNOLOGY USING STANDARD COPPER PHONE WIRES ALCATEL USING FIBEROPTIC CABLES COMPLETING THE SYSTEM APPLE IS PROVIDING SETTOP BOXES IN EACH SUBSCRIBER'S HOME LINKING THEIR TV SETS TO THE PHONE WIRES PAUL REYNOLDS BT'S TOP PLANNER FOR THE NEW SERVICES CALLED IT PURE SPECULATION TO TRY FORECASTING THE COMPANY'S SPENDING BUT THEN ADDED THAT IT WOULD BE CERTAINLY IN THE BILLIONS OF POUNDS IF BT DECIDES TO LAUNCH A NATIONWIDE SERVICE HE EMPHASIZED THAT SUCH A DECISION WON'T COME UNTIL AFTER BT FINISHES ITS TRIALS THE SERVICES UNDER STUDY INCLUDE VIDEOONDEMAND A NEW KIND OF SOCALLED INTERACTIVE MULTIMEDIA SERVICE WHEREBY TV VIEWERS CAN PICK ANY VIDEO FROM A CENTRAL COMPUTERIZED LIBRARY AND THEN HAVE IT PUMPED DOWN TV CABLES OR PHONE WIRES TO THEIR HOMES 9403040146 940304 CHERNOBYL SAFETY FEARS GROW AS UKRAINE REVERSES DECISION TO SHUT NUCLEAR PLANT BY NATALIA FEDUSCHSAK STAFF REPORTER OF THE WALL STREET JOURNAL KIEV CONCERNS ABOUT CHERNOBYL ARE BEING REVIVED AS REPORTS CONTINUE TO SURFACE ABOUT THE UKRAINE NUCLEARPOWER STATION THE SITE OF THE WORLD'S WORST NUCLEAR ACCIDENT THE APPREHENSION IS BUILDING ON THE HEELS OF A RECENT DECISION BY PARLIAMENT TO REVERSE A 1991 DECREE THAT WOULD HAVE CLOSED CHERNOBYL BY THE END OF LAST YEAR CITING THE COUNTRY'S SEVERE ENERGY CRISIS LAWMAKERS ALSO LIFTED A MORATORIUM ON THE CONSTRUCTION OF NEW NUCLEARPOWER STATIONS ANTINUCLEAR ADVOCATES WARN THAT IF CHERNOBYL ISN'T SHUT DOWN THE RISKS OF ACCIDENTS NEARACCIDENTS AND SAFETYRELATED PROBLEMS REMAIN SUBSTANTIAL FROM THE POINT OF VIEW OF SAFETY THE DECISION TO KEEP CHERNOBYL RUNNING IS NOT A CORRECT ONE SAYS ENVIRONMENT MINISTER YURIY KOSTENKO THIS WEEK INTERFAX UKRAINE REPORTED THAT IN JANUARY 21 INCIDENTS WERE RECORDED AT NUCLEARPOWER STATIONS IN UKRAINE AN OFFICIAL AT THE STATE COMMITTEE ON ENERGY USE SAID THE INCIDENTS DIDN'T CAUSE ANY DANGER TO PERSONNEL AND THE SURROUNDING AREA THE INDEPENDENT NEWS AGENCY REPORTED BUT IT CITED OFFICIALS WHO SAID THEY HAD TO SHUT DOWN REACTORS IN THREE OF THE INCIDENTS AND SHUT OFF POWER IN ABOUT 15 OF THEM THE APRIL 26 1986 ACCIDENT AT CHERNOBYL OCCURRED WHEN PLANT OPERATORS TURNED OFF THE SAFETY SYSTEM ON BLOCK 4 TO CARRY OUT A BELATED ELECTRICAL TEST THE REACTOR WENT OUT OF CONTROL BLEW OFF THE ROOF AND SPEWED ITS RADIOACTIVE CONTENTS ACROSS A WIDE SWATH OF NORTHERN EUROPE THE REACTOR SUBSEQUENTLY WAS ENCASED IN A HUGE BLOCK OF CEMENT TO ENTOMB THE REMAINING RADIOACTIVE MATERIAL BUT THE SARCOPHAGUS DESIGNED TO LAST 30 YEARS WAS HASTILY CONSTRUCTED NOW ALMOST EIGHT YEARS AFTER THE ACCIDENT OFFICIALS ADMIT THEY DON'T KNOW IF THE ENCASING WILL LAST THAT LONG RIGHT NOW THE SARCOPHAGUS AND RADIATION DUST ARE THE BIGGEST DANGER FOR US SAYS VASYL KOVALCHUK SPOKESMAN OF THE MINISTRY CHARGED WITH DEALING WITH THE AFTEREFFECTS OF THE CHERNOBYL ACCIDENT HE SAYS VIDEO CAMERAS INSIDE THE SARCOPHAGUS SHOW THE APPEARANCE OF SMALL CRACKS MINUTE AMOUNTS OF RADIOACTIVE DUST ARE BEING DISCHARGED THROUGH THE CRACKS WHILE SMALL AMOUNTS OF WATER ARE LEAKING INTO THE REACTOR SOME LIKE MR KOVALCHUK FEAR THE MIXTURE OF WATER AND RADIOACTIVE DUST THAT HAS ACCUMULATED OVER THE YEARS COULD BEGIN A NUCLEAR CHAIN REACTION WHICH COULD TRIGGER ANOTHER EXPLOSION NIKOLAI STEINBERG HEAD OF THE STATE COMMITTEE FOR NUCLEAR AND RADIOACTIVE SAFETY DENIES ANOTHER CHERNOBYLLIKE ACCIDENT IS POSSIBLE BUT ADMITS WE REALLY DON'T KNOW THE STATE BLOCK 4 IS IN TO MAKE MATTERS WORSE MR KOVALCHUK SAYS CHERNOBYL WAS CONSTRUCTED IN AN EARTHQUAKE AREA THE ROOF IS STANDING VERTICALLY GOD FORBID THERE SHOULD BE SOME TREMORS WHICH COULD DISLODGE THE ROOF CAUSING IT TO COME CRASHING THOUGH THE WALLS OF THE SARCOPHAGUS IN AN ATTEMPT TO SOLVE THE CHERNOBYL PROBLEM THE UKRAINIANS ANNOUNCED IN FEBRUARY 1992 AN INTERNATIONAL COMPETITION FOR THE DESIGN OF A NEW SARCOPHAGUS OUT OF 394 PROPOSALS NO FIRST PRIZE WAS AWARDED BUT OFFICIALS DID HONOR A FRENCH CONSORTIUM LED BY CIVIL ENGINEER CAMPENON BERNARD WITH SECOND PLACE BUT THAT DOESN'T MEAN THE FRENCH PROPOSAL WILL BE BUILT MR KOVALCHUK SAYS THE IDEA BEHIND THE COMPETITION WAS TO PROVIDE FEASIBLE SOLUTIONS TO THE CHERNOBYL PROBLEM HE SAYS WITH A NUMBER OF SOLUTIONS NOW AVAILABLE WORK IS MOVING TOWARD SOME SORT OF IMPLEMENTATION HE SAYS ALTHOUGH IT ISN'T YET CLEAR WHAT THE RESULT WILL BE THE COST OF BUILDING A NEW ENCASING IS FORMIDABLE FOR CASHSTARVED UKRAINE ESTIMATES RANGE FROM 300 MILLION TO 500 MILLION THAT'S ON TOP OF THE 15 THE GOVERNMENT ALREADY SPENDS FROM ITS YEARLY BUDGET WHICH IS ALLOCATED TO CLEANUP EFFORTS SAFETY CONCERNS DON'T STOP AT BLOCK 4 HOWEVER UKRAINIAN TELEVISION RECENTLY REPORTED THAT THE THREAT OF FIRE IS A CONSTANT CONCERN REFUTING RUMORS THAT THE SECOND BLOCK WHICH WAS BADLY DAMAGED BY A FIRE IN OCTOBER 1991 COULD BE RESTARTED MR STEINBERG SAYS IT IS IMPOSSIBLE TO BRING THAT REACTOR UP TO WORLD STANDARDS MOREOVER RUSSIA HAS REFUSED TO ACCEPT ANY MORE SPENT NUCLEAR FUEL FOR DISPOSAL LEAVING UKRAINE WITH THE PROBLEM OF HOW TO GET RID OF IT SAFELY MR KOVALCHUK NOTES THAT SO FAR ABOUT 800 SITES WITHIN A 30KILOMETER ZONE AROUND CHERNOBYL CONTAIN NUCLEAR WASTE ENVIRONMENTAL GROUPS AND UKRAINIAN OFFICIALS WORRY THAT RADIOACTIVE MATERIAL AT THE SITES COULD LEAK INTO THE GROUNDWATER EVENTUALLY ENDING UP IN THE DNIPRO UKRAINE'S MAJOR RIVER WHICH RUNS INTO THE BLACK SEA ADDING TO ENVIRONMENTAL CONCERNS ARE FINDINGS RECENTLY MADE PUBLIC ABOUT THE PRESENCE OF PLUTONIUM AND AMERICIUM HIGHLY RADIOACTIVE SUBSTANCES IN THE AREA AROUND CHERNOBYL ALTHOUGH RADIATION LEVELS ARE NORMAL IN KIEV CHILDHOOD THYROID CANCER HAS RISEN SINCE THE 1986 ACCIDENT MR KOVALCHUK SAYS OF THE 180000 LIQUIDATORS SENT TO CHERNOBYL TO HELP WITH THE CLEANUP AFTER THE ACCIDENT 2500 HAVE DIED AND 5288 HAVE BECOME INVALIDS HE ADDED WE CAN SAY THAT 600000 PEOPLE ARE CONSIDERED TO BE ADVERSELY AFFECTED BY THE ACCIDENT 9403040145 940304 3M INAMED LOSE VERDICTS IN BREASTIMPLANT CASE HOUSTON A STATE COURT JURY AWARDED 15 MILLION IN PUNITIVE DAMAGES AGAINST MINNESOTA MINING & MANUFACTURING CO AND TWO OTHER COMPANIES FOR THREE WOMEN'S ILLNESSES ALLEGEDLY RELATED TO SILICONE BREAST IMPLANTS THE JURY'S AWARD IS IN ADDITION TO 185 MILLION IN ACTUAL DAMAGES ALREADY ASSESSED IN THE SAME CASE AGAINST THE SAME THREE COMPANIES THE VERDICTS WERE AGAINST ST PAUL MINNBASED 3M MCGHAN MEDICAL CORP AND MCGHAN'S PARENT COMPANY INAMED CORP OF LAS VEGAS 3M OWNED MCGHAN FROM 1977 UNTIL 1984 THE CASE HAS BEEN WATCHED CLOSELY BECAUSE OF ITS POSSIBLE IMPACT ON 3M'S STRATEGY IN FUTURE BREASTIMPLANT LITIGATION THE COMPANY SO FAR IS STAYING OUT OF A 4 BILLION TENTATIVE GLOBAL SETTLEMENT OF IMPLANT LIABILITY THAT IS BEING NEGOTIATED BY PLAINTIFF'S ATTORNEYS AND REPRESENTATIVES OF MAJOR IMPLANT MANUFACTURERS BUT NEGOTIATORS OF THAT DEAL WHICH STILL ISN'T FINAL HAVE SPECULATED A BIG VERDICT AGAINST 3M COULD PUSH IT TOWARD PARTICIPATING IN THE OVERALL SETTLEMENT A 3M SPOKESWOMAN SAID THE COMPANY'S DECISION WOULDN'T BE BASED ON ONE CASE AND THAT INSURANCE WILL COVER ANY PAYMENTS SHE ALSO SAID THE LUPUS AND NEUROPATHY WHICH THE THREE HOUSTON PLAINTIFFS SUFFERED WEREN'T CAUSED BY IMPLANTS INAMED DECLINED TO COMMENT 9403040144 940304 LAW CURFEWS SPREAD BUT EFFECTS ARE STILL NOT CLEAR BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEWARK NJ A GROWING NUMBER OF CITIES AND TOWNS ARE TRYING TO FIGHT CRIME BY FORCING TEENAGERS OFF THE STREETS AT NIGHT BUT CURFEWS HAVE A MIXED RECORD FOR LOWERING CRIME AND SOME BUSINESS PEOPLE SAY CURFEWS DO LITTLE TO PROTECT THEIR ENTERPRISES IN 1992 NEWARK NJ IMPOSED A 10 PM CURFEW ON PEOPLE UNDER 18 THE POLICE SAY THE CURFEW WORKED POINTING TO 1000 CITATIONS ISSUED LAST SUMMER FOR CURFEW VIOLATIONS BUT NORBERTO OTERO WHO RUNS A PET STORE IN DOWNTOWN NEWARK ISN'T SO SURE THE KIDS SIMPLY IGNORE THE CURFEW HE SAYS AND THE POLICE ARE TOO BUSY TO DO MUCH ABOUT IT VANDALS TEENAGED OR NOT STILL SPRAYPAINT GRAFFITI ON THE GRATES OF HIS SHOP AFTER HE CLOSES IN THE EARLY EVENING AND THE NIGHTTIME ROBBERIES HAVEN'T STOPPED TWICE SINCE THE CURFEW WAS IMPOSED BURGLARS HAVE BROKEN INTO HIS STORE AND STOLEN EXOTIC BIRDS THE PEOPLE RUINING THE CITY AREN'T AFFECTED BY THE CURFEW MR OTERO SAYS SIMILARLY SANTA MONICA CALIF ENACTED A 10 PM TO SUNRISE CURFEW LAST SEPTEMBER IN PART BECAUSE MERCHANTS AT A LOCAL MALL COMPLAINED THAT LOITERING YOUTHS WERE SCARING OFF BUSINESS THE TEENS CLEARED OUT OF THE MALL BUT STORE OWNERS SAY THE CURFEW HASN'T INCREASED ADULT TRAFFIC IN REALITY I THINK THE KIDS HAD VERY LITTLE IMPACT ON BUSINESS SAYS ONE OF THE MALL'S MANAGERS YET NEW CURFEWS ARE BEING IMPOSED AND OLD CURFEW LAWS ARE BEING REACTIVATED IN CITIES AND TOWNS AS LARGE AS HOUSTON AND AS SMALL AS NETCONG NJ POP 5000 CURFEWS ARE APPEALING CRIMEFIGHTING TOOLS BECAUSE THEY'RE EASY TO INVOKE THEY SOUND TOUGH AND THEY ARE POPULAR WITH THE ELECTORATE FEAR IS THE DRIVING FACTOR HERE SAYS HUBERT WILLIAMS PRESIDENT OF THE POLICE FOUNDATION A LAW ENFORCEMENT THINK TANK AND A FORMER POLICE CHIEF OF NEWARK NJ CURFEWS GET PUSHED DOWN THE THROATS OF POLICE BY ELECTED OFFICIALS REACTING TO PUBLIC OUTRAGE OVER CRIME NO ONE KNOWS EXACTLY HOW MANY COMMUNITIES IN THE US HAVE CURFEWS BUT IN NEW JERSEY ALONE THE NUMBER HAS DOUBLED IN THE PAST YEAR TO ABOUT 200 FIVE TOWNS IN LOS ANGELES COUNTY CALIF IMPOSED CURFEWS LAST YEAR ON FEB 17 A CURFEW WENT INTO EFFECT IN DADE COUNTY FLA AS THEY DID RECENTLY IN TAMPA AND ORLANDO LEGISLATORS IN FLORIDA WILL SOON CONSIDER A BILL TO ESTABLISH A STATEWIDE CURFEW ONE PROBLEM WITH CURFEWS IS THAT FEW CITIES ALLOCATE ADDITIONAL FUNDS TO ENFORCE THEM LEAVING ENFORCEMENT SPOTTY AND LAX I DON'T FEEL LIKE I HAVE TO GO INSIDE WHEN IT'S LATE SAYS 13YEAROLD ELEX BLANKS OF NEWARK THE POLICE DON'T STOP YOU OR CHECK YOUR ID ADDS 19YEAROLD HASLYN HUNTE OF NEWARK A CURFEW CAN BE VERY EFFECTIVE FOR ALL OF FIVE MINUTES WHEN THE POLICE CLEAR OFF A STREET CORNER BUT AS SOON AS THEY LEAVE PEOPLE ARE BACK OUT ON THE CORNER WHILE OVERALL CRIME RATES HAVE DECREASED OVER THE PAST TWO YEARS JUVENILE CRIME HAS INCREASED IN 1992 95723 JUVENILES OR 5 MORE THAN THE PREVIOUS YEAR WERE ARRESTED FOR VIOLENT OFFENSES INCLUDING MURDER RAPE AND AGGRAVATED ASSAULT TEENAGERS ALSO ARE INCREASINGLY CRIME VICTIMS OF THE 22540 HOMICIDE VICTIMS IN 1992 WHOSE AGES WERE KNOWN 2428 WERE UNDER 18 AN 8 RISE FROM 1991 PROPONENTS ARGUE THAT CURFEWS NOT ONLY HELP PREVENT CRIME BUT ALSO KEEP CHILDREN OUT OF HARM'S WAY BUT CRIME STATISTICS IN SOME CITIES WITH CURFEWS SUGGEST THAT CURFEWS MAY NOT BE THE ANSWER TO JUVENILE CRIME IN ATLANTA WHICH IMPOSED A CURFEW IN LATE 1990 ARRESTS OF JUVENILES FOR ASSAULT LAST YEAR JUMPED NEARLY 20 TO 658 FROM 1992 AND JUVENILE ARRESTS FOR MURDER DOUBLED TO 15 IN BALTIMORE WHICH HAS HAD A CURFEW FOR 18 YEARS JUVENILE ARRESTS FOR ASSAULT ACCOUNT FOR 27 OF ALL ASSAULT ARRESTS NEARLY DOUBLE THE NATIONAL AVERAGE A CURFEW WON'T REALLY DETER THOSE WHO WANT TO COMMIT CRIMES ACKNOWLEDGES NEWARK POLICE DIRECTOR WILLIAM R CELESTER BUT THE BIGGER SUCCESS STORIES TEND TO BE IN CITIES THAT HAVE INSTITUTED OTHER PROGRAMS FOR YOUTHS AT THE SAME TIME THEY IMPOSED CURFEWS IN THOSE CASES THE EFFECT ON CRIME IS APPARENT IN 1991 THE CITY OF SAN ANTONIO DECIDED PART OF THE REASON KIDS WERE OUT AT NIGHT SOMETIMES COMMITTING CRIMES WAS BECAUSE THERE WAS SO LITTLE ELSE TO DO THE CITY ENACTED A CURFEW BUT ALSO BOOSTED SPENDING ON SOCIAL SERVICES AND PROGRAMS FOR THE YOUNG DURING EARLIER EVENING HOURS MERCHANTS OFFERED DISCOUNTS ON FOOD AND APPAREL TO TEENS WHO PARTICIPATED IN THE PROGRAMS THE COST TO THE CITY 2 MILLION THE RESULT IN 1993 CRIMES AGAINST YOUTHS IN SAN ANTONIO DROPPED 77 DURING THE CURFEW HOURS OF 12 AM TO 6 AM COMPARED WITH THE YEAR BEFORE ARRESTS OF JUVENILES FELL 5 A CURFEW IN AND OF ITSELF WON'T WORK SAYS SERGIO SOTO WHO RUNS THE CITY'S YOUTH PROGRAMS YOU CAN'T BE WHOLLY PUNITIVE YOU HAVE TO REWARD KIDS AND SHOW THEM BEING GOOD IS COOL 9403040143 940304 HOUSE PANEL CLEARS BILL TO CURB ABUSES IN CREDIT REPORTING BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BANKING COMMITTEE APPROVED LEGISLATION AIMED AT CURBING ABUSES IN CONSUMERCREDIT REPORTING AFTER SUBSTANTIALLY WEAKENING THE BILL'S REQUIREMENTS THE PANEL PASSED THE MEASURE ON A PARTY LINE 2920 VOTE BUT CONSUMERS UNION ONE OF THE BILL'S LEADING BACKERS SAID THE MEASURE WAS SO WATERED DOWN THAT THE GROUP WITHDREW ITS SUPPORT MICHELLE MEIER A CONSUMERS UNION LOBBYIST SAID COMPANIES THAT PROVIDE CONSUMER CREDIT WHICH KILLED A CONSUMERORIENTED BILL LAST YEAR SEEM TO BE DOOMING ITS PROSPECTS AGAIN THIS YEAR THE LEGISLATION WOULD REQUIRE CREDIT BUREAUS TO REPORT MORE PRECISELY ON PEOPLE'S CREDIT RECORDS AND TO INVESTIGATE COMPLAINTS AND DELETE INACCURATE ENTRIES WITHIN 30 DAYS IT WOULD LIMIT THE SCOPE OF INFORMATION THOSE COMPANIES MAY REPORT BARRING FOR EXAMPLE REPORTS ON HOW CONSUMERS SPEND THEIR MONEY IT ALSO WOULD ALLOW CONSUMERS TO GET ONE FREE CREDIT REPORT ON THEMSELVES EACH YEAR SO THAT THEY CAN CHECK THE ACCURACY OF THEIR CREDIT RECORDS THE BILL INCLUDED AMENDMENTS ADOPTED BY THE COMMITTEE EARLY LAST MONTH INCLUDING ONE THAT ALLOWS THE FEDERAL REQUIREMENTS TO PREEMPT STATE CREDITREPORTING LAWS CONSUMER GROUPS OPPOSED THE AMENDMENT ARGUING THAT STATES ARE USUALLY THE FIRST TO ENACT SUCH PROTECTIONS AND THAT THE AMENDMENT WOULD NULLIFY SOME STATE LAWS THAT HAVE STRONGER PROTECTION FOR CONSUMERS LAST YEAR A CREDITREPORTING BILL NARROWLY LOST ON THE HOUSE FLOOR WHEN BUSINESSES OPPOSED A PROVISION TO MAINTAIN THE CURRENT REQUIREMENT THAT FEDERAL LAW PREEMPT STATE LAWS EXCEPT WHEN STATES HAVE TOUGHER ONES ANOTHER AMENDMENT PASSED LAST MONTH WOULD ALLOW COMPANIES THAT SELL ON CREDIT TO CREATE THEIR OWN INHOUSE CREDIT GROUPS CUSTOMER CREDIT INFORMATION COULD BE EXCHANGED BETWEEN SAY A FIRM'S INSURANCE CONSUMERPRODUCTS AND OTHER AFFILIATES CONSUMERS UNION'S MS MEIER CALLED THE PROVISION A LOOPHOLE PERMITTING LIBERAL INHOUSE TRADING OF LATEPAYMENT AND OTHER DATA AT BIG DIVERSIFIED COMPANIES SUCH AS SEARS ROEBUCK & CO OR BANK HOLDING COMPANIES THE BILL ALSO GIVES CREDIT CARD COMPANIES EASIER ACCESS TO PERSONAL CREDITRELATED INFORMATION WHICH THE COMPANIES CAN USE IN SELECTING MARKETING PROSPECTS MS MEIER SAID 9403040141 940304 WHO'S NEWS NATIONAL GYPSUM PICKS CEO CHARLOTTE NC NATIONAL GYPSUM CO NAMED STEPHEN M HUMPHREY 49 YEARS OLD AS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS PETER C BROWNING 52 WHO RESIGNED LAST FALL TO TAKE A POSITION WITH SUN CO MR HUMPHREY HAD BEEN PRESIDENTONHIGHWAY PRODUCTS AUTOMOTIVE OPERATIONS AT ROCKWELL INTERNATIONAL CORP NATIONAL GYPSUM ALSO RECENTLY ELECTED CD SPANGLER A CURRENT BOARD MEMBER AS ITS NONEXECUTIVE CHAIRMAN NATIONAL GYPSUM A MAKER OF WALLBOARD OPERATES 25 MANUFACTURING PLANTS THROUGHOUT THE COUNTRY THE COMPANY EMERGED FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION LAST JULY 1 9403040140 940304 WHO'S NEWS QUANTUM HEALTH RESOURCES INC QUANTUM HEALTH RESOURCES INC ORANGE CALIF STEVEN B EPSTEIN 50 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PROVIDER OF SERVICES TO INDIVIDUALS AFFECTED BY CERTAIN CHRONIC DISORDERS INCREASING THE BOARD TO SIX HE IS A SENIOR HEALTH PARTNER WITH THE LAW FIRM OF EPSTEIN BECKER & GREEN 9403040139 940304 WHO'S NEWS PCA INTERNATIONAL INC PCA INTERNATIONAL INC MATTHEWS NC JOSEPH H REICH 59 YEARS OLD WAS NAMED CHAIRMAN OF THIS PORTRAITSTUDIO COMPANY HE SUCCEEDS STANLEY TULCHIN 62 WHO REMAIN A DIRECTOR MR REICH A BOARD MEMBER SINCE 1987 IS THE MANAGING DIRECTOR OF CENTENNIAL ASSOCIATES LP PCA ALSO NAMED PETER B FOREMAN A DIRECTOR INCREASING THE SIZE OF THE BOARD TO NINE MEMBERS MR FOREMAN IS PRESIDENT OF SIRIUS CORP 9403040138 940304 INTERNATIONAL BOEING TO GIVE AIRBUS A ROLE ON SUPERJUMBO BY JEFF COLE AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO IN A CONCESSION AIMED AT KEEPING ALOFT ITS DEVELOPMENT WORK FOR A SUPERJUMBO JET YESTERDAY AGREED TO LET RIVAL AIRBUS INDUSTRIE PARTICIPATE IN A PIVOTAL PHASE OF INTERNATIONAL STUDY FOR THE AIRLINER UNTIL NOW THE SEATTLEBASED JET MAKER HAD INSISTED THAT THE FOUR EUROPEAN PARTNERS OF AIRBUS PROCEED WITH BOEING ON THE PROJECT WITHOUT THE AIRBUS CONSORTIUM'S INVOLVEMENT THE COMPANIES DEUTSCHE AEROSPACE AG A UNIT OF GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN CONTROL AIRBUS WHICH IS BOEING'S PRIMARY COMPETITOR IN SELLING PLANES TO THE WORLD'S AIRLINES BUT AT A TOPLEVEL MEETING YESTERDAY IN LONDON HOSTED BY BOEING CHAIRMAN FRANK SHRONTZ BOEING AGREED TO LET AIRBUS MANAGERS JOIN IN A LIMITED ADVISORY ROLE THE STUDIES ARE AIMED AT DEVELOPING A NEW SIZE OF PLANE WITH 500 TO 800 SEATS AIRBUS STILL WOULDN'T BE A PARTNER IN THE PROJECT AND WOULDN'T BE A SIGNATORY TO AGREEMENTS FOR THE JOINT STUDY BOEING OFFICIALS WOULDN'T COMMENT ON THE CONCESSION A COMPANY SPOKESMAN SAID ONLY THAT AIRBUS WILL BE FILLING THE ADVISORY ROLE FOR THE EUROPEANS AN AIRBUS SPOKESWOMAN DECLINED TO COMMENT ON ANY ASPECT OF THE STUDY SINCE JANUARY THE PRESSURE HAD BEEN INTENSE ON THE PROJECT LEADER BOEING TO ALLOW AIRBUS'S INVOLVEMENT AS A FIRST PHASE OF THE STUDY WOUND DOWN THE COMPANIES HAVE JOINED TOGETHER TO DEVELOP THE HUGE JET BY THE YEAR 2000 BECAUSE DEMAND FOR SUCH AN AIRCRAFT IS LIMITED AND PROJECTED DEVELOPMENT COSTS ARE AN EXTRAORDINARY 15 BILLION OR MORE THE NEW PHASE OF THE STUDIES WILL RUN THROUGH MID1995 AND WILL EXPLORE WHETHER THE PROJECT MAKES ECONOMIC SENSE THE PROJECT IS UNUSUALLY COMPLEX INVOLVING NEW DESIGNS AND TOOLING AND AN INTERCONTINENTAL DESIGN AND PRODUCTION SCHEME IS LIKELY TO BE RESOLVED ONLY THROUGH HARD BARGAINING THE PROJECT ALSO WILL HAVE TO CLEAR ANTITRUST REVIEWS A SHOWDOWN OVER THE CONSORTIUM'S INVOLVEMENT ERUPTED LESS THAN TWO MONTHS AGO WHEN OFFICIALS OF AEROSPATIALE DEMANDED THAT AIRBUS BE ALLOWED TO REPRESENT THE EUROPEAN COMPANIES IN THE PROJECT BOEING MANAGERS REJECTED THAT DEMAND BUT LATER EXPRESSED A WILLINGNESS TO ALLOW THE ADVISORY ROLE PARTLY BECAUSE THE EUROPEAN COMPANIES RELY LARGELY ON THE AIRBUS ORGANIZATION FOR MARKETING EXPERTISE PEOPLE FAMILIAR WITH THE DEVELOPMENTS SAID THE STANDOFF WAS EXACERBATED BY A RECENT SAUDI DECISION AFTER INTENSE LOBBYING BY THE CLINTON ADMINISTRATION TO GIVE A 6 BILLION AIRCRAFT ORDER TO US MANUFACTURERS PEOPLE FAMILIAR WITH THE SUPERJUMBO PLANNING PROCESS SAID THAT AEROSPATIALE CHAIRMAN LOUIS GALLOIS PROPOSED FULL AIRBUS INVOLVMENT DURING TALKS YESTERDAY BUT DEUTSCHE AEROSPACE CHAIRMAN JUERGEN SCHREMPP WHO INITIALLY JOINED WITH BOEING TO BRING THE PROJECT TOGETHER IN LATE 1992 PROPOSED AIRBUS BE GIVEN ADVISORY STATUS A COMPROMISE ACCEPTED BY ALL SIDES DECISIONS WILL REST WITH THE COMPANIES THEMSELVES SAID JUERGEN THOMAS A DEUTSCHE AEROSPACE OFFICIAL ACTING AS EUROPEAN PROJECT DIRECTOR FOR THE STUDY HE SAID THE COMPANIES WOULD MAKE USE OF AIRBUS EXPERTISE IN CERTAIN DISCIPLINES 9403040137 940304 TECHNOLOGY & HEALTH PRUDENTIAL TEAMS WITH HARVARD STAFF ON MANAGED CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA AND HARVARD MEDICAL SCHOOL SAID THEY AGREED TO COLLABORATE ON A PROJECT AIMED AT EVALUATING AND IMPROVING THE QUALITY OF MANAGED HEALTH CARE THE AGREEMENT IS THE FIRST SIGNIFICANT PROJECT FOR PRUDENTIAL'S RECENTLY ESTABLISHED CENTER FOR HEALTH CARE RESEARCH IN THE FACE OF MOUNTING PRESSURE FROM GOVERNMENT AND PRIVATESECTOR HEALTH REFORM EFFORTS IT REFLECTS THE GROWING EFFORT OF HEALTHCARE COMPANIES TO MEASURE AND IMPROVE THEIR PERFORMANCE IN DELIVERING MEDICAL CARE PRUDENTIAL FORMED THE RESEARCH CENTER LAST AUGUST AS PART OF ITS STRATEGIC SHIFT FROM A COMPANY THAT PROVIDES HEALTH INSURANCE TO ONE THAT DELIVERS CARE WILLIAM L ROPER PRESIDENT OF THE CENTER DESCRIBED IT AS THE RESEARCH AND DEVELOPMENT ARM OF PRUDENTIAL'S HEALTHCARE OPERATION HE ADDED THAT SUCH A FACILITY IS IMPORTANT TO THE COMPANY'S SUCCESS IN THE HEALTHCARE MARKET OTHER COMPANIES AND HEALTH PLANS HAVE MOUNTED SIMILAR EFFORTS FOR INSTANCE UNITED HEALTHCARE CORP'S CENTER FOR HEALTH CARE POLICY AND EVALUATION MINNEAPOLIS IS DEVELOPING REPORT CARDS INTENDED TO AID CONSUMERS IN CHOOSING HEALTH PLANS US QUALITY ALGORITHMS A UNIT OF US HEALTHCARE BLUE BELL PA FOCUSES ON METHODS TO EVALUATE HOSPITALS AND DOCTORS KAISER PERMANENTE OAKLAND CALIF GROUP HEALTH COOPERATIVE OF PUGET SOUND SEATTLE AND HEALTH PARTNERS MINNEAPOLIS ALL HEALTH MAINTENANCE ORGANIZATIONS ALSO RUN RESEARCH CENTERS AIMED AT FINDING COSTEFFECTIVE WAYS TO MONITOR QUALITY AND PROVIDE CARE THE PRUDENTIALHARVARD AGREEMENT IS PART OF PRUDENTIAL'S PLAN TO USE OUR MEMBER POPULATION AS AN ONGOING LABORATORY FOR STUDIES OF THE OUTCOMES OF HEALTH SERVICES DR ROPER SAID UNDER THE ARRANGEMENT PRUDENTIAL WILL PAY HARVARD A 100000 ANNUAL RETAINER FOR THE NEXT THREE YEARS AS A STEP TOWARD A LONGTERM COLLABORATION HE SAID AMONG OTHER THINGS THE EFFORT IS EXPECTED TO LEAD TO MORE RELIABLE METHODS OF MEASURING THE EFFECTIVENESS OF CARE AND TO PROVIDE DOCTORS WITH INFORMATION TO HELP CHANGE THE WAY HEALTH CARE IS DELIVERED DR ROPER SAID FOR HARVARD WHOSE DEPARTMENT OF HEALTH CARE POLICY IS ONE OF THE NATION'S LEADING ACADEMIC PROGRAMS IN HEALTH SERVICES RESEARCH THE AGREEMENT PROVIDES RESEARCHERS ACCESS TO PRUDENTIAL'S FIVE MILLION COVERED LIVES A PARTICULARLY LARGE SOURCE OF PATIENTS ON WHICH TO STUDY OUTCOMES AND DEVELOP WAYS TO MEASURE PERFORMANCE THE HEALTHCARE SYSTEM IS GOING TO BE DRIVEN BY THINGS PEOPLE WANT TO MEASURE SAID BARBARA J MCNEIL CHAIRMAN OF THE DEPARTMENT BUT FEW RELIABLE TOOLS EXIST TO ACCOUNT FOR DIFFERENCES IN HOW SICK PATIENTS ARE AND OTHER VARIABLES THAT CAN LEAD TO BIAS IN MEASURING AND COMPARING TREATMENT RESULTS SHE SAID INITIAL PROJECTS UNDER THE AGREEMENT WILL FOCUS ON HOW TO REDUCE BIAS AND ON FACTORS THAT CONTRIBUTE TO PATIENT SATISFACTION WITH CARE SHE SAID 9403040136 940304 RUN RUN RUN RUN RUN DRINK RUN RUN RUN RUN RUN RUN BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IF YOU THINK A MARATHON RUNNER HAS IT ROUGH TRY HANDING ONE A CUP OF WATER ODDS ARE YOU'LL SPILL MOST OF IT OR WORSE WORLDCLASS RUNNER JOAN BENOIT SAMUELSON FINISHED A DISAPPOINTING SIXTH IN THE 1991 NEW YORK CITY MARATHON AFTER BEING TRIPPED BY A CUP BOY THAT'S UNLIKELY TO HAPPEN IN THE EIGHTH LOS ANGELES MARATHON THIS SUNDAY THANKS TO JOE BLACKSTONE AND HIS 40 TRAINED WATERSTATION CAPTAINS THUMB AND MIDDLE FINGER THAT'S THE PERFECT HOLD SAYS MR BLACKSTONE THE MARATHON'S DIRECTOR OF OPERATIONS AS HE DEMONSTRATES THE TECHNIQUE VOLUNTEERS WILL USE TO PASS OUT WATER TO 19000 PANTING RUNNERS TRAINING SESSIONS FOR THE CAPTAINS HAVE BEEN HELD SINCE JANUARY INCLUDING A REHEARSAL TWO WEEKS AGO USING STANDARD SEVENOUNCE CUPS THE DOS AND DON'TS FILL THE CUP PART WAY HOLD IT AT ARM'S LENGTH AND MOVE IT IN THE RUNNER'S DIRECTION A STIFFARMED GRIP TO A BOUNCING RUNNER ENDS IN A SLOSH IF RUNNERS WANT A COOL CUP OF WATER IN THE FACE THEY'LL ASK FOR IT SPLASHING COLD WATER ON AN UNSUSPECTING RUNNER CAN CAUSE MUSCLE CONTRACTIONS AND CRAMPS THE LA EVENT WHICH WILL BE SUPPLIED WITH 30000 GALLONS OF BOTTLED WATER BY A COMPANY SPONSOR AS WELL AS 10000 GALLONS OF GATORADE APPEARS TO LEAD AMERICA'S MARATHONS IN ITS DISTRIBUTION METHODS IT WAS FOR EXAMPLE THE FIRST TO OFFER WATER EVERY MILE THE OLDER BOSTON AND NEW YORK RACES WHICH USED TO START HANDING OUT WATER AT MILE 5 NOW ALSO SPACE TABLES EVERY MILE ALONG THE 262MILE COURSE AT THE LOS ANGELES WATER CLASSES ATTENDANTS AT EVERY FOURTH MILE MARKER LEARN THEY HAVE TO GUARD THE SPECIAL FLUIDS ELITE RUNNERS ARE ALLOWED TO KEEP THERE IN PERSONALIZED PLASTIC BOTTLES VOLUNTEERS STATIONED ALONG THE COURSE ALSO MUST BE VERSED IN VASELINE WHICH RUNNERS SMEAR UNDER THEIR ARMS AND BETWEEN THEIR LEGS TO PREVENT CHAFING AND BLISTERS THE PRODUCT IS HANDED OUT ON TONGUE DEPRESSORS OH THERE'S A TERRIBLE STORY SIGHS WILLIAM BURKE PRESIDENT AND FOUNDER OF THE LA RACE IN 1986 THE MARATHON'S FIRST YEAR INEXPERIENCED RUNNERS AUTOMATICALLY TREATED THE VASELINEDAUBED STICKS THE SAME WAY THEY DID EVERYTHING ELSE THEY WERE HANDED PEOPLE WERE EATING IT MR BURKE SAYS TODAY WATERSTATION CAPTAINS ARE INSTRUCTED TO MAKE IT CLEAR WHAT THE VASELINE IS FOR BY YELLING THIS IS FOR BLISTERS 9403040135 940304 WHO'S NEWS KEYCORP KEYCORP CLEVELAND STEPHEN E WALL 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF SOCIETY NATIONAL BANK THE LARGEST BANKING UNIT OF THE BANK HOLDING COMPANY HE SUCCEEDS HENRY L MEYER III 44 AS PRESIDENT OF THE UNIT THE OPERATINGCHIEF POST HAD BEEN VACANT FOR SEVERAL YEARS MR MEYER CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BANK MR WALL WAS FORMERLY VICE CHAIRMAN OF THE BANK AND AN EXECUTIVE VICE PRESIDENT OF SOCIETY CORP WHICH RECENTLY MERGED WITH KEYCORP 9403040134 940304 TECHNOLOGY & HEALTH APPLE UNVEILS NEW VERSION OF NEWTON IN BID TO RECOVER FROM MARKETING FLOP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC MOVING TO RECOVER FROM THE MARKETING DISASTER THAT ACCOMPANIED THE LAUNCH OF ITS NEWTON MESSAGEPAD IS UNVEILING A NEW VERSION THAT IS CHEAPER AND CORRECTS SOME SHORTCOMINGS IN THE ORIGINAL PRODUCT THE NEW MESSAGEPAD 110 WHICH APPLE WILL BEGIN SHIPPING TODAY CONTAINS IMPROVEMENTS IN A HANDWRITING RECOGNITION SYSTEM THAT HAD BEEN WIDELY RIDICULED BY USERS AND THE PRESS AFTER THE FIRST MESSAGEPAD HIT THE MARKET LAST SUMMER THE LATEST PRODUCT ALSO MAKES IT EASIER TO KEEP AND SEND FILES IN HANDWRITTEN FORM AS ELECTRONIC INK IT IS FAR FASTER TO RECHARGE CONTAINS AS MUCH AS FOUR TIMES LONGER BATTERY LIFE AND COMES IN A SLEEKER DESIGN APPLE BASED IN CUPERTINO CALIF APPEARS TO BE REPOSITIONING THE PRODUCT FOR ONE THING IT IS RELEASING THE NEW MESSAGEPAD AT A LOWER PRICE THAN THE ORIGINAL APPLE'S PRICE FOR MESSAGEPAD 110 IS 599 COMPARED WITH THE 699 PRICE ON THE FIRST VERSION WHICH ANALYSTS SAY HINDERED SALES APPLE IS ALSO OFFERING A MESSAGEPAD 100 THAT LOOKS JUST LIKE THE ORIGINAL BUT CONTAINS UPGRADED SOFTWARE AND IS PRICED AT 499 OWNERS OF PREVIOUSLY BOUGHT MESSAGEPADS CAN GET THEIR MACHINES' SOFTWARE UPGRADED WITH THE NEW FEATURES FOR 99 IN INTERVIEWS APPLE OFFICIALS STRESSED THAT AS MANY AS 70 OF SOFTWARE DEVELOPERS WORKING ON NEWTON PRODUCTS ARE CORPORATIONS OR INSTITUTIONS INTERESTED IN CUSTOMIZED APPLICATIONS SUCH AS USING THE NEWTON AS A DATAENTRY DEVICE FOR UTILITY METERREADERS OR HOSPITAL NURSES APPLE ORIGINALLY MARKETED THE NEWTON AS MORE OF A CONSUMER DEVICE SOME ANALYSTS SAY THE CHANGES ARE AN IMPORTANT STEP IN MAKING THE NEWTON A USEFUL TOOL FOR CORPORATIONS TO IMPROVE THEIR ABILITY TO CAPTURE AND MANAGE DATA BUT MOTOROLA INC ON MONDAY IS EXPECTED TO ANNOUNCE A 1500 HANDHELD COMMUNICATOR THAT HAS BUILTIN WIRELESS CAPABILITY WHICH IS CONSIDERED A MUST FOR THESE KINDS OF PRODUCTS THE NEWTON STILL HAS TO BE HOOKED UP TO AN EXTERNAL WIRELESS MODEM THAT COSTS ABOUT 500 ANALYSTS SAY THE NEWTON WILL REALLY BECOME MARKETABLE WHEN IT BECOMES FULLY WIRELESS AS THE COMPANY PROMISES WITHIN THE NEXT TWO YEARS PEOPLE ARE MISTAKEN ABOUT NEWTON ASSUMING IT WILL NEVER IMPROVE SAID CHARLES WOLF AN INDUSTRY CONSULTANT AND BUSINESS PROFESSOR AT COLUMBIA UNIVERSITY HE ASSERTED THAT APPLE IS PURSUING A WINNING STRATEGY BY POSITIONING THE NEWTON AS A PLATFORM FOR MANY USES AS OPPOSED TO MICROSOFT CORP WHICH HE SAID IS DEVELOPING AN OPERATING SYSTEM FOR HANDHELD DEVICES THAT WOULDN'T ALLOW DEVELOPMENT OF MANY VARIED PRODUCTS OTHER ANALYSTS SAID THE LATEST MESSAGEPAD IS JUST A TWEAKED VERSION OF THE ORIGINAL AND THAT A BIG LEAP IN THE PRODUCT'S POPULARITY AND USEFULNESS PROBABLY WON'T COME UNTIL SEPTEMBER OR EARLY FALL WHEN APPLE SAID IT WILL START SHIPPING A LARGER TABLETSIZED NEWTON PRODUCT CODENAMED BIC WHICH WOULD PROVIDE FULLPAGE VIEWING THE TABLET COMPUTERS WOULD COME IN HANDY FOR SUCH WORK AS A DOCTOR ON HOSPITAL ROUNDS NEEDING TO CHECK A PATIENT'S FULL MEDICAL SHEET THIS MESSAGEPAD 110 IS NOT GOING TO MAKE THEM SELL 500000 NEW NEWTONS THIS YEAR SAID MARK MACGILLIVRAY MANAGING DIRECTOR OF H&M CONSULTING IN SUNNYVALE CALIF GASTON BASTIAENS AN APPLE GENERAL MANAGER OVERSEEING NEWTON PRODUCTS SAID THE COMPANY CONSIDERS ITS REPORTED SALES OF 80000 UNITS FROM AUGUST THROUGH DECEMBER TO BE A GREAT SUCCESS COMPARED WITH THE INITIAL LAUNCH OF OTHER NEW ELECTRONIC PRODUCTS SUCH AS CD PLAYERS HOWEVER HE DECLINED TO DISCLOSE SALES FIGURES FOR JANUARY AND FEBRUARY ANALYSTS HAVE ASSERTED THAT NEWTON SALES FELL SHARPLY AFTER THE CHRISTMAS SEASON MR BASTIAENS CONCEDED THAT THERE HAS BEEN A SEASONAL SALES DROP DESPITE THE ADVERSE PUBLICITY ABOUT MESSAGEPAD'S HANDWRITING RECOGNITION SOFTWARE APPLE HAS LINED UP A NUMBER OF COMPANIES WHO ARE TESTING THE PRODUCT FOR IMPLEMENTATION IN THEIR BUSINESSES MR BASTIAENS SAID THE APPROXIMATELY 100 LARGE CORPORATIONS INVOLVED IN THE TESTING WANT TAILORMADE PROGRAMS FOR THEIR OWN USE INDUSTRIAL CONGLOMERATE MONSANTO CO FOR INSTANCE SAID IT IS COMPLETING PLANS TO BUY AN UNDETERMINED NUMBER OF MESSAGEPADS AFTER THE ST LOUIS CONCERN USED THE COMPUTERS FOR SUCH THINGS AS HAVING A TECHNICIAN PERFORM PLANT INSPECTIONS OUR CONCLUSION IS THAT THE MESSAGEPAD HAD DELIVERED SAID MARC VANACHT A PROJECT LEADER FOR THE NEWTON TESTS AT MONSANTO WHO ADDED THAT HANDHELD COMPUTERS ARE A LOT CHEAPER FOR THE COMPANY THAN HAVING TO BUY 2000 LAPTOPS MESSAGEPAD'S MOST NOTORIOUSLY FLAWED FEATURE HAS BEEN ITS INABILITY TO RECOGNIZE THE HANDWRITING OF USERS BY COMPARING WRITTEN WORDS TO AN INTERNAL DICTIONARY THE SOFTWARE HAS TROUBLE DECIPHERING SLOPPY WRITING AND THE DICTIONARY WAS LIMITED FAILING TO RECOGNIZE MANY PROPER NAMES SO APPLE HAS CHANGED THE FEATURE TO RECOGNIZE LETTERS AS WELL AS WORDS THIS MEANS AN UNUSUAL NAME IS CONVERTED INTO TEXT EXACTLY AS WRITTEN RATHER THAN WHAT THE COMPUTER THINKS THE WORD SHOULD BE AN APPLE OFFICIAL SAID THE NEW SYSTEM DOESN'T NECESSARILY LOWER THE ERROR RATE BUT GIVES THE USER MUCH MORE FLEXIBILITY 9403040133 940304 WHO'S NEWS LONG ISLAND LIGHTING CO LONG ISLAND LIGHTING CO HICKSVILLE NY JAMES T FLYNN 60 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER SUCCEEDING ANTHONY F EARLEY JR MR EARLEY RESIGNED RECENTLY AS PRESIDENT AND CHIEF OPERATING OFFICER TO ASSUME THE SAME POSITIONS AT DETROIT EDISON CO LILCO'S CHIEF EXECUTIVE OFFICER WILLIAM J CATACOSINOS TEMPORARILY HOLDS THE POSITION OF PRESIDENT SEPARATELY THE UTILITY NAMED EDWARD J YOUNGLING 49 SENIOR VICE PRESIDENT OF ITS ELECTRIC BUSINESS UNIT SUCCEEDING EDWARD DIETZ WHO LEFT THE COMPANY 9403040132 940304 DEMOCRATS WILL ALTER THE MECHANICS OF HEALTH PLAN HOUSE LEADER SIGNALS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE MAJORITY LEADER RICHARD GEPHARDT SIGNALED THAT DEMOCRATS IN CONGRESS WILL SIGNIFICANTLY ALTER THE MECHANICS OF THE CLINTON HEALTH PLAN AND COULD ACCEPT A MORE GRADUAL APPROACH TOWARD ACHIEVING UNIVERSAL HEALTH COVERAGE MR GEPHARDT SAID IT WAS HOGWASH TO PORTRAY THE PRESIDENT'S PLAN AS DEAD IN CONGRESS BUT HE ACKNOWLEDGED THAT MODIFICATIONS MUST BE MADE TO MOVE THE LEGISLATION THROUGH HOUSE COMMITTEES THIS SPRING AND ACHIEVE UNIVERSAL COVERAGE IN A TIMELY FASHION WE'RE SAYING WE'RE INTERESTED IN THE GOALS BEING ACHIEVED SAID THE MISSOURI DEMOCRAT WE'RE NOT INTERESTED IN ALL THE MECHANISMS BEING ACHIEVED MR GEPHARDT SUGGESTED GRADUALLY PHASING IN ELEMENTS OF THE WHITE HOUSE PROPOSAL INCLUDING PROPOSED COST CONTROLS ON HEALTHINSURANCE PREMIUMS AND WHILE PREDICTING THAT LAWMAKERS EVENTUALLY WILL RECOGNIZE THE PRESIDENT'S ARGUMENTS FOR REQUIRING COMPANIES TO HELP PAY FOR THEIR WORKERS' INSURANCE MR GEPHARDT WENT SO FAR AS TO SAY HE COULD VOTE FOR A PLAN THAT ABANDONS THE SOCALLED EMPLOYER MANDATE IN FAVOR OF ONE THAT FIRST PUTS THE BURDEN OF OBTAINING INSURANCE ON INDIVIDUALS HIS COMMENTS ARE THE STRONGEST AND MOST DETAILED STATEMENT YET BY ANYONE IN THE PARTY LEADERSHIP ON THE NEED TO ALTER THE PRESIDENT'S PROGRAM AS MAJORITY LEADER MR GEPHARDT INVESTED CONSIDERABLE EFFORT IN THE LAST CONGRESS TRYING TO FRAME A DEMOCRATIC HEALTHCARE BILL AND HE COMES TO THE FIGHT NOW WITH A BETTER UNDERSTANDING OF THE DIFFICULTY IN REACHING A CONSENSUS AN ARRAY OF HOUSE PANELS ARE SLATED TO DRAFT PORTIONS OF THE BILL THIS SPRING BUT THE MOST CRUCIAL ARENAS WILL BE THE WAYS AND MEANS AND ENERGY AND COMMERCE COMMITTEES MR GEPHARDT INDICATED THAT THE DEMOCRATS MAY RELY INCREASINGLY ON THE WAYS AND MEANS PANEL WHERE THE LEADERSHIP HAS GREATER STRENGTH AND WHILE OUTWARDLY HOPEFUL THAT THE ENERGY AND COMMERCE PANEL CAN REPORT A COMPANION VERSION OF THE BILL HE SAID THE PARTY IS PREPARED TO TAKE LEGISLATION TO THE FLOOR IF ONLY WAYS AND MEANS IS SUCCESSFUL IF YOU CAN GET A BILL OUT OF THE WAYS AND MEANS COMMITTEE MR GEPHARDT SAID YOU MAY HAVE A BILL THAT CAN GET 218 VOTES ON THE HOUSE FLOOR THE TOP LEADERSHIP OF THE ENERGY AND COMMERCE COMMITTEE HAS BEEN AMONG THOSE MOST LOYAL TO THE PRESIDENT'S PLAN BUT THE MAKEUP OF THE COMMITTEE MAKES IT DIFFICULT TO MOVE LEGISLATION WITHOUT REPUBLICAN SUPPORT BECAUSE THE PANEL INCLUDES A NUMBER OF CONSERVATIVE SOUTHERN DEMOCRATS THE HOUSE LEADERSHIP HAS TROUBLE COMMANDING A MAJORITY OF THE COMMITTEE WITHOUT SOME REPUBLICAN SUPPORT THE PROBLEM WAS UNDERSCORED YESTERDAY WHEN 30 HOUSE MEMBERS INCLUDING REP ROY ROWLAND D GA AN ENERGY AND COMMERCE PANEL MEMBER PROPOSED A BAREBONES ALTERNATIVE TO THE PRESIDENT'S PLAN THE MEASURE WOULD ATTEMPT ONLY INSURANCE REFORMS ABOUT WHICH THERE IS WIDE AGREEMENT FOR INSTANCE IT WOULD LIMIT CLAUSES IN INSURANCE POLICIES THAT DENY COVERAGE BASED ON PREEXISTING CONDITIONS I DON'T KNOW WHY WE HAVE TO DO IT ALL AT ONCE MR ROWLAND TOLD REPORTERS UNLESS THE LEADERSHIP CAN DEMONSTRATE SOME MOVEMENT ON THE PRESIDENT'S PROGRAM INCREMENTAL BILLS LIKE MR ROWLAND'S WILL HAVE SOME APPEAL AS POLITICAL COVER FOR LAWMAKERS AFRAID OF HAVING NOTHING TO SHOW VOTERS IN NOVEMBER'S ELECTION SUCH PROBLEMS HAVE ENCOURAGED SOME IN THE HOUSE TO LOOK LONGINGLY TOWARD THE SENATE MR GEPHARDT HIMSELF SAID THAT IF THE SENATE COULD COME UP FIRST WITH A BIPARTISAN BILL THAT MEETS THE PRESIDENT'S GOALS IT WOULD HELP THE HOUSE SENATE REPUBLICANS ARE MORE DIVIDED ON THE ISSUE THAN THE HOUSE GOP FOR THE ADMINISTRATION THE BEST HOPE OF SOME COMPROMISE RESTS WITH MODERATES WHO SHARE THE PRESIDENT'S COMMITMENT TO UNIVERSAL COVERAGE A PLAN SPONSORED BY SEN JOHN CHAFEE R RI SEEKS TO ACHIEVE THIS GOAL THROUGH A COMBINATION OF SUBSIDIES AND A REQUIREMENT THAT ALL INDIVIDUALS BUY INSURANCE MR GEPHARDT APPEARED TO BE REACHING OUT TO THIS GROUP IN HIS COMMENTS ON EMPLOYER AND INDIVIDUAL MANDATES BUSINESS INTERESTS HAVE BEEN MOST ACTIVE IN OPPOSING THE EMPLOYER MANDATES SOUGHT BY THE ADMINISTRATION BUT AS REPUBLICAN AND DEMOCRATIC LAWMAKERS LOOK MORE CLOSELY AT THE INDIVIDUAL APPROACH THEY ADMIT IT TOO WILL BE A DIFFICULT SELL TO VOTERS AND THAT SOME COMPROMISE MAY BE NEEDED MINORITY LEADER ROBERT DOLE R KAN ACKNOWLEDGED AS MUCH YESTERDAY SAYING THE AVERAGE WORKER MAY WANT HIS EMPLOYER TO SHARE IN ANY MANDATED COVERAGE SENATE REPUBLICANS JOINED BY SEVERAL MEMBERS OF THE HOUSE GOP LEADERSHIP BEGAN A RETREAT LAST NIGHT IN MARYLAND TO DISCUSS STRATEGY AND THE DIFFERENCES AMONG THEM MR DOLE DIDN'T RULE OUT THE SENATE ACTING ON THE BILL BEFORE THE HOUSE DOES IF SOME CONSENSUS CAN BE REACHED BUT THE REPUBLICAN LEADER IS PLAINLY RELUCTANT TO GET TOO FAR AHEAD OF HIS PARTY AND MAKE HIMSELF VULNERABLE TO CONSERVATIVES IN THE HOUSE DOLE WANTS TO MAKE SURE THAT ANY BIPARTISAN PLAN HAS A VERY WIDE REPUBLICAN IMPRINT SAID HOUSE GOP WHIP NEWT GINGRICH OF GEORGIA 9403040131 940304 MARKETING FOCUS ON BEER BY MARJ CHARLIER IN YET ANOTHER ATTEMPT TO REVIVE A MARKET THAT HAS BEEN STAGNANT FOR A DECADE BEER MAKERS HAVE MODIFIED AN OLD IDEA BIG BOTTLES QUARTSIZED BOTTLES HAVE BEEN AVAILABLE FOR DECADES BUT THEY HAVE HELD MOSTLY LOWPRICED BEERS AIMED AT A LOWEND MARKET THE NEW GENERATION OF BIG BOTTLES HAS ACHIEVED A PRESTIGE THAT COULD HELP INCREASE THE TOTAL MARKET FOR BEER SAYS ROBERT S WEINBERG A ST LOUIS BEER CONSULTANT AS WITH MANY OF TODAY'S BEER INDUSTRY TRENDS THIS ONE STARTED WITH REGIONAL BREWERS AND MICROBREWERS OPERATING WITH LIMITED CAPITAL THEY BEGAN PACKAGING THEIR BEER IN INDIVIDUAL 22 OR 24OUNCE BOTTLES BECAUSE IT WAS CHEAPER THAN PUTTING OUT THE SAME VOLUME IN 12OUNCE BOTTLES BUT CUSTOMERS LIKED THE BIG BOTTLES FOR ANOTHER REASON THEY COULD TRY NEW BEERS WITHOUT PAYING FOR A SIXPACK AND NOW CONSUMERS ARE BUYING THE BOTTLES OF ALES AND PORTERS TO SHARE OVER DINNER AS THEY ONCE SHARED BOTTLES OF FINE WINE IT'S A CEREMONIAL DRINKING SITUATION SAYS MR WEINBERG AND A CONCRETE EXAMPLE OF MARKET DEVELOPMENT SO FAR THE BIG BOTTLES HAVEN'T ADDED MUCH SPARK TO BEER SALES BEER VOLUME INCREASED ONLY 05 IN 1993 BUT SOME LIKE MR WEINBERG THINK IT MAY HAPPEN SOON THE PACKAGE ALLOWS CONSUMERS TO EXPERIMENT WITH BEER MR WEINBERG SAYS WHICH COULD ADD TO SALES THE CONCEPT ALSO IS GETTING THE ENDORSEMENT OF THE LARGE BREWERS CONSUMERS CAN NOW BUY EVERYTHING FROM ADOLPH COORS'S WINTERFEST A WINTER BEER TO STROH BREWERY'S SCHLITZ IN THE LARGE BOTTLES THE BUDDING TREND HAS HAD AN UNANTICIPATED SIDE EFFECT LOWER DEMAND FOR ALUMINUM CANS THE POPULARITY OF THE 12OUNCE LONGNECK BEER BOTTLE HAS BEEN REDUCING CAN USAGE CONTRIBUTING TO THE DETERIORATION OF ALUMINUM PRICES IT'S HARD TO TELL WHO BREWED THE BEER YOU'RE DRINKING THESE DAYS SOCALLED PHANTOM BREWERIES LISTED ON THE LABELS OF PRODUCTS BREWED BY COORS BREWING G HEILEMAN BREWING AND MILLER BREWING ARE IN LINE WITH THE BIG BREWERS' RECENT EFFORTS TO CATCH THE CACHET OF REGIONAL AND MICROBREWERIES ALTHOUGH MILLER KEPT ITS COMPANY NAME ON ITS LINE OF MILLER RESERVE SPECIALTY BREWS IT CHOSE TO CREDIT PLANK ROAD BREWERY WITH ITS NEW ICEHOUSE BEER ON THE LABEL PLANK ROAD WAS THE NAME OF THE BREWERY FREDERICK MILLER BOUGHT IN 1855 IN MILWAUKEE BUT TODAY'S ICEHOUSE IS MADE IN THE SAME MILLER BREWERIES NATIONWIDE AS MILLER HIGH LIFE COORS MEANWHILE PUTS ZIMA BEVERAGE CO ON ITS ZIMA BRAND WHICH IS BREWED IN ITS MEMPHIS BREWERY ALONG WITH ITS NONALCOHOLIC CUTTER AND CASTLEMAINE XXXX AN AUSTRALIAN BEER BREWED UNDER LICENSE HEILEMAN BREWS WINDY CITY ALE WHICH IT CREDITS TO THE WINDY CITY BREWING CO AND MARKETS IN CHICAGO AND HEILEMAN MASQUERADES AS THE EMERALD CITY BREWERY FOR THE PURPOSE OF BOTTLING ITS EMERALD CITY ALE FOR THE SEATTLE MARKET IT'S TO TRY TO CREATE AN IMAGE CONSISTENT WITH A PRODUCT THAT'S BREWED IN SMALL BATCHES SAYS RANDY SMITH A SPOKESMAN FOR HEILEMAN IF THE NAME OF A MAJOR BREWER WAS ON THE LABEL PEOPLE WOULDN'T THINK THE BEER HAD ALL THE SPECIAL CHARACTERISTICS THEY EXPECT IN A BEER OF THAT NATURE THIS ISN'T A NEW IDEA RHEINGOLD BREWING OF UPSTATE NEW YORK PUT THE NAME FOREST BREWING CO ON THE LABEL OF THE NATION'S FIRST LIGHT BEER GABLINGER IN 1967 THEY WERE AFRAID TO ASSOCIATE THEIR OWN NAME WITH A BEER THAT MIGHT FAIL SAYS JOE OWADES A CALIFORNIA BEER CONSULTANT THE BEER DID FAIL AND HEILEMAN NOW OWNS THE RHEINGOLD BRAND THE PROLIFERATION OF MICROBREWERIES AND BREWPUBS AROUND THE NATION HAS SPAWNED A BEVY OF BEEROFTHEMONTH CLUBS CELEBRATOR BEER NEWS A MICROBREWINGINDUSTRY NEWSPAPER AND BEER THE MAGAZINE EACH LIST SEVEN COMPANIES OFFERING TO SEND SIX PACKS OF HARDTOGET SMALL BREWS FROM DIFFERENT BREWERIES TO ITS CUSTOMERS EACH MONTH THE SUBSCRIPTIONS COST FROM ABOUT 15 PLUS SHIPPING TO 22 NO SHIPPING ADDED A MONTH FOR TWO DIFFERENT SIX PACKS A MONTH EVEN THOUGH THE CLUBS' SHIPMENTS AREN'T ALLOWED IN SOME STATES INCLUDING TEXAS NORTH DAKOTA AND WASHINGTON THEY ARE FINDING PLENTY OF CUSTOMERS BEER ACROSS AMERICA THE FIRST TO OFFER THE SERVICE STARTED WITH 400 MEMBERS TWO YEARS AGO AND NOW CLAIMS 58000 MEMBERS ALTHOUGH THE NUMBER FLUCTUATES RISING RIGHT AFTER GIFTGIVING SEASONS BUT GROWTH OF A CLUB CAN LIMIT THE NUMBER OF BREWERIES ABLE TO CONTRIBUTE TO MONTHLY SHIPMENTS TO PRODUCE 58000 SIX PACKS OR ABOUT 1000 BARRELS IN A MONTH WOULD OVERWHELM MANY SMALL BREWERIES MOST OF WHICH PRODUCE FEWER THAN 15000 BARRELS A YEAR TO SOLVE THE PROBLEM BEER ACROSS AMERICA IN JANUARY STARTED SPLITTING ITS MEMBERSHIP INTO THREE PARTS EACH THIRD OF THE LIST IS SENT A DIFFERENT BEER SAYS COOWNER TODD HOLMES THE CLUBS HAVE RISEN BECAUSE INTEREST IN MICROBREWS HAS OUTPACED ANY ADVANCES IN DISTRIBUTION FOR SMALLVOLUME BEERS SAYS PAUL SHIPMAN PRESIDENT OF REDHOOK BREWING CO A SEATTLE MICROBREWER BUT WHILE MANY MICROBREWERIES WANT THE ONETIME ECONOMIC SHOT IN THE ARM THEY GET FROM PROVIDING BEER TO A CLUB IT DOESN'T REALLY HELP THEM SELL BEER IN THEIR MOSTLY LOCAL MARKETS HE SAYS COORS WHICH SPENDS HEAVILY ON LITERACY PROGRAMS IS BOMBARDED BY SNIDE COMMENTS ABOUT THE SPELLING OF ARTIC ICE COORS FOLKS SAY THEY SPELLED IT WITH ONLY ONE C SO THEY COULD TRADEMARK THE NAME MILLER DIDN'T SPELL 'LITE' RIGHT EITHER RETORTS A SPOKESWOMAN ANTIALCOHOL GROUP MARIN INSTITUTE BLASTS THE BEER INDUSTRY FOR MAKING DONATIONS TO SUCH CHARITABLE GROUPS AS UNITED CEREBRAL PALSY AND MUSCULAR DYSTROPHY ASSOCIATIONS 9403040130 940304 CORPORATE FOCUS LONE STAR INDUSTRIES READY TO EMERGE FROM CHAPTER 11 TROUBLED CEMENT MAKER HOPES MANY OF ITS PROBLEMS ARE BEHIND IT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL LONE STAR INDUSTRIES INC ONCE THE NATION'S LARGEST CEMENT MAKER THINKS IT MAY BE POISED FOR A COMEBACK AFTER STRUGGLING FOR MORE THAN THREE YEARS UNDER BANKRUPTCYLAW PROTECTION LESS THAN A DECADE AGO LONE STAR BOASTED PLANTS COASTTOCOAST SHIPPED 108 MILLION TONS OF CEMENT AND REPORTED 1 BILLION IN ANNUAL REVENUE BUT INTERNAL PROBLEMS FOREIGN COMPETITION AND THE ALLEGED FREESPENDING WAYS OF FORMER CHIEF EXECUTIVE JAMES STEWART DAMAGED THE COMPANY AND DESTROYED A GOOD DEAL OF ITS CREDIBILITY THE BANKRUPTCY CAUSED A GREAT METAMORPHOSIS AND CHANGED OUR WAY OF THINKING CONCEDES DAVID WALLACE THE CURRENT CHIEF EXECUTIVE OF STAMFORD CONNBASED LONE STAR WHICH EXPECTS TO EMERGE FROM BANKRUPTCYLAW PROTECTION MARCH 31 BUT WE'RE GOING TO BE VIABLE HE ADDS WE'RE GOING TO SURVIVE MR WALLACE A FORMER OUTSIDE DIRECTOR LARGELY RESPONSIBLE FOR THE COMPANY'S TURNAROUND AND EXPECTED EMERGENCE FROM CHAPTER 11 SAYS RESTORING MORALE AMONG THE COMPANY'S EMPLOYEES AND CUSTOMERS KEPT ME UP NIGHTS A HOST OF FORCES CONSPIRED TO KNOCK LONE STAR OFF ITS ONCELOFTY PERCH THE COMPANY BUILT ON A SERIES OF RAPIDFIRE AND EXPENSIVE ACQUISITIONS IN THE 1970S LATER FOUND ITS PRICES SHARPLY UNDERCUT BY FOREIGN COMPETITORS THE COMPANY WAS ALSO HURT BY A CONSTRUCTION SLOWDOWN IN THE LATE 1980S FACING A 390 MILLION DEBT LOAD AND HIGH OVERHEAD LONE STAR WAS STAGGERED WHEN BANKS IN LATE 1990 REFUSED TO RENEW ITS CREDIT LINES AT THE SAME TIME OTHER PROBLEMS BEGAN TO BUBBLE TO THE SURFACE IN 1990 SEVERAL US RAILROADS SUED LONE STAR FOR MORE THAN 200 MILLION ALLEGING THAT CEMENT CROSSTIES ACQUIRED FROM THE COMPANY WERE DEFECTIVE LONE STAR ALSO FACED ENVIRONMENTAL CLEANUP COSTS OF ABOUT 200 MILLION AT SEVERAL PRODUCTION FACILITIES AND THE COMPANY OWED ABOUT 100 MILLION TO ITS UNDERFUNDED PENSION PLAN AND TO COVER CERTAIN RETIREE MEDICAL BENEFITS ALL TOLD LONE STAR FACED POTENTIAL LIABILITIES OF OVER HALF A BILLION DOLLARS IN PERHAPS THE FINAL BLOW A LAW FIRM HIRED BY THE COMPANY ALLEGED IN A REPORT THAT MR STEWART THE THENCHIEF EXECUTIVE IMPROPERLY CHARGED LONE STAR 11 MILLION FOR PERSONAL EXPENSES THE REPORT SAID THEY INCLUDED HAVING THE COMPANY PAY 73000 IN DESIGN FEES FOR MR STEWART'S 2 MILLION CEMENT HOUSE PAY FOR WEST COAST JUNKETS WITH ACTRESS ELIZABETH TAYLOR AND PAY A MUSIC PROFESSOR 135000 TO PLAY THE PIANO THE SERENADES WERE ACCOUNTED FOR AS CONSULTING SERVICES THE REPORT SAID ON DEC 10 1990 A BRUISED LONE STAR FILED FOR BANKRUPTCYLAW PROTECTION IN WHITE PLAINS NY TWO DAYS LATER MR STEWART TOOK A LEAVE OF ABSENCE AND EVENTUALLY RESIGNED AT THE TIME HE DENIED THE ALLEGATIONS MR STEWART WHO IS DRAWING A PENSION OF 345000 A YEAR COULDN'T BE REACHED FOR COMMENT ON THIS ARTICLE SHAREHOLDERS WERE ANGERED BY THE LAW FIRM'S REPORT AND WERE PARTICULARLY IRKED THAT LONE STAR HAD PASSED UP TWO ACQUISITION PROPOSALS LONE STAR SHARES TUMBLED 45 IN A SINGLE DAY IN 1990 AFTER THE COMPANY SAID IT WOULD FILE FOR CHAPTER 11 PROTECTION ALTHOUGH LONE STAR'S CORE CEMENT BUSINESS WAS FAIRLY HEALTHY THE COMPANY CLEARLY SUFFERED FROM A LEADERSHIP CRISIS WE HAD TO DUST OFF THE TARNISH FROM THE LONE STAR NAME MR WALLACE SAYS WE HAD TO SHOW WE WERE MASTERS OF OUR OWN FATE MR WALLACE'S STRATEGY HAS BEEN TO MAKE LONE STAR A NIMBLER COMPANY BY DISPOSING OF LARGE NONUS ASSETS AND MAKING PAINFUL CUTBACKS AT HOME THE COMPANY SOLD ALL OF ITS OVERSEAS OPERATIONS EXCEPT OPERATIONS IN CUBA WHICH HAVE BEEN NATIONALIZED LONE STAR HAS ALSO CUT BACK ON STAFF CONSOLIDATED OPERATIONS AND REINSTATED LONGDELAYED CAPITAL EXPENDITURES TO UPDATE CEMENT FACILITIES SALESPEOPLE ARE URGED TO BE MORE AGGRESSIVE IN COLLECTING ON RECEIVABLES THE FREESPENDING WAYS ARE GONE TOO MR WALLACE AND EVERYBODY ELSE AT LONE STAR FLIES TOURIST CLASS AND STAYS AT HOLIDAY INNS INSTEAD OF RITZY HOTELS THERE ARE NO LAVISH CORPORATE PARTIES AND NO EXECUTIVE WASHROOMS THE THREE CORPORATE AIRCRAFT THAT FERRIED MR STEWART AND OTHERS HAVE LONG BEEN SOLD VERY QUICKLY MR STEWART FADED INTO THE TWILIGHT SAYS MR WALLACE AND NOBODY APPEARS TO QUESTION LONE STAR'S AUSTERITY MEASURES TODAY INDEED WILLIAM TROUTMAN PRESIDENT AND CHIEF OPERATING OFFICER HAS BEEN TOLD YOU'RE SO TIGHT YOU SQUEAK LONE STAR STILL FACES NUMEROUS HURDLES THE COMPANY WHICH HAD TO CONTEND WITH THE ENVIRONMENTAL CLEANUP HEADACHE HAS SPENT BETWEEN 70 MILLION AND 80 MILLION IN LEGAL SETTLEMENTS AND REMEDIATION SO FAR AND HASN'T YET RESOLVED THE ENTIRE LIABILITY IT HAS ALSO PAID ABOUT 35 MILLION IN CLAIMS RELATING TO ITS PENSION AND MEDICAL BENEFITS DUES WHICH REPRESENTS ONLY PART OF THE OVERALL LIABILITY LONE STAR SETTLED THE 200 MILLIONPLUS IN CLAIMS FOR FAULTY RAILROAD CROSSTIES FOR ABOUT 67 MILLION BUT AN 80 MILLION LAWSUIT IT BROUGHT AGAINST LAFARGE CORP WHICH IT CLAIMED SUPPLIED FAULTY CEMENT FOR THE TIES RESULTED IN A MERE 13 MILLION JUDGMENT LONE STAR IS APPEALING THAT AWARD IN THE COURT OF APPEALS FOR THE FOURTH CIRCUIT IN DELAWARE LONE STAR HAD REVENUE LAST YEAR OF ONLY 240 MILLION AND A LOSS OF 35 MILLION BEFORE CERTAIN ACCOUNTING CHANGES BUT IT HOPES THE NATION'S IMPROVING ECONOMY AND IN PARTICULAR PROSPECTS FOR A ROBUST CONSTRUCTION SECTOR WILL PROVIDE A BOOST THE COMPANY'S BANKRUPTCYLAW REORGANIZATION PLAN PROJECTS THAT REVENUE COULD RISE TO 304 MILLION NEXT YEAR AND TO 340 MILLION BY 1997 IT PROJECTS A MODEST 87 MILLION PROFIT THIS YEAR RISING TO 25 MILLION THREE YEARS LATER WE EXPECT TWO VERY GOOD YEARS FOR THE CEMENT INDUSTRY SAID WILLIAM TOAL CHIEF ECONOMIST OF THE PORTLAND CEMENT ASSOCIATION SKOKIE ILL HE EXPECTS DEMAND FOR CEMENT TO INCREASE 7 IN 1994 TO RECORD LEVELS THANKS TO A BOOST IN PUBLIC WORKS RESIDENTIAL AND COMMERCIAL CONSTRUCTION THE NEW LONE STAR WILL BE PRIMARILY MIDWESTBASED MR WALLACE SAYS WITH MOST OF ITS REVENUE COMING FROM CEMENT AGGREGATES AND READYMIX CONCRETE PRODUCTS WILL CONTRIBUTE A SMALLER PORTION LONE STAR'S LONGSUFFERING COMMON STOCKHOLDERS WHOSE SHARES HAVE BEEN TRADING IN THE 2 TO 3 RANGE RECENTLY WILL HOLD ONLY A 45 INTEREST IN THE NEW COMPANY ONCE IT EMERGES FROM CHAPTER 11 PROCEEDINGS LONE STAR'S STOCK TRADED AS HIGH AS 37 IN 1989 BUT THE REORGANIZED COMPANY'S SHARES APPEAR TO HAVE APPEAL TO SOME INVESTORS POSTREORGANIZATION LONE STAR SHARES TRADING ON A WHENISSUED BASIS WERE QUOTED YESTERDAY AT ABOUT 1950 EACH THE COMPANY HAS PROJECTED A BOOK VALUE OF 149 MILLION TO 204 MILLION FOLLOWING REORGANIZATION WHICH IS EQUAL TO 1250 TO 17 A SHARE EVERYBODY LOVES THE CEMENT INDUSTRY SAYS JOHN BELL AN ANALYST AT DABNEY/RESNICK INC BEVERLY HILLS CALIF 9403040129 940304 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WORKERS IN THE IG METALL UNION VOTED TO STRIKE MONDAY IN THE GERMAN STATE OF LOWER SAXONY BRUSHING ASIDE GOVERNMENT WARNINGS THAT AN ESCALATING LABOR CONFLICT COULD JEOPARDIZE ECONOMIC RECOVERY WITH WESTERN GERMAN INDUSTRY SHOWING SIGNS OF STABILIZING THE UNION'S PLAN TO FOLLOW UP WARNING STRIKES WITH AN INITIALLY NARROW WALKOUT COULD LIMIT ECONOMIC PAIN YET KEEP PRESSURE ON EMPLOYERS IG METALL WHICH REPRESENTS 36 MILLION AUTOMOTIVE ENGINEERING AND ELECTRICAL WORKERS SAID 92 OF ITS MEMBERS IN LOWER SAXONY VOTED FOR THE FULLSCALE STRIKE TO START WITH WALKOUTS BY 10000 WORKERS NATIONAL CONTRACT TALKS BROKE DOWN LAST MONTH WHEN THE GESAMTMETALL EMPLOYERS GROUP INSISTED ON A WAGE FREEZE FEWER VACATION BENEFITS AND WORKWEEK CHANGES THE UNION WANTS A 6 WAGE BOOST AND COMPENSATORY PAY FOR SHORTER WORKWEEKS GERMAN UNEMPLOYMENT NOW 4 MILLION COULD TOP 44 MILLION THIS YEAR AS UNCOMPETITIVE INDUSTRY CONTINUES TO STREAMLINE OPERATIONS AND CUT STAFF TO REDUCE COSTS HONDURAS WILL PRIVATIZE EMPRESA HONDURENA DE TELECOMUNICACIONES THE MILITARYRUN TELEPHONE COMPANY KNOWN AS HONDUTEL THE FINANCE MINISTRY VALUING HONDUTEL AT 750 MILLION BLAMED THE ARMED FORCES FOR ADMINISTRATIVE CORRUPTION SHAMELESS ROBBERY AND INEFFICIENCY AT THE FIRM WHICH HAS 4000 EMPLOYEES THE MILITARY TOOK OVER HONDUTEL IN 1963 UNDER MARTIAL RULE THAT LASTED UNTIL 1981 MILITARY BRASS RETAIN POLITICAL CLOUT IN THE DEMOCRATIC GOVERNMENT BUT DON'T OPPOSE HONDUTEL'S SELLOFF THE MILITARY ALSO CONTROLS INSURERS A BANK GUN STORES REALTY FIRMS A BUS MAKER FARMS RADIO STATIONS AND THE COUNTRY'S BIGGEST FUNERAL HOME THE GREEK GOVERNMENT APPROVED 13 BIG PUBLICWORKS PROJECTS INCLUDING A NEW AIRPORT FOR ATHENS WITH CONSTRUCTION TO GET UNDER WAY BY YEAR END TOTAL COSTS WERE ESTIMATED AT 81 BILLION MOSTLY TO BE PAID BY GREECE AND THE EUROPEAN UNION SOME OF THE WORK WILL BE JOINT EFFORTS WITH PRIVATE COMPANIES THE 218 BILLION AIRPORT IN THE ATHENS SUBURB OF SPATA WILL HAVE CAPACITY TO SERVE 16 MILLION PASSENGERS A YEAR OTHER PROJECTS INCLUDE A 159 BILLION HIGHWAY ACROSS NORTHERN GREECE RUSSIA'S GAZPROM MONOPOLY BEGAN CUTTING OFF NATURAL GAS TO UKRAINE AND BELARUS DEMANDING PAYMENTS OF ARREARS TO RESTART THE FLOW GAZPROM SAID UKRAINE HAS RUN UP A BILL OF 7088 MILLION AND BELARUS 2953 MILLION THE UTILITY DROPPED A THREAT TO STOP SUPPLYING MOLDOVA WHICH STARTED PAYING ITS DEBT MEANWHILE UKRAINE DENIED RUSSIAN ALLEGATIONS THAT IT HAD SIPHONED GAS FROM GAZPROM'S PIPELINE DESTINED FOR WESTERN EUROPE A PHILIPPINE SENATOR INTRODUCED LEGISLATION TO DISBAND THE FILM CENSORS BOARD ACCUSING IT OF INCOMPETENCE AND VIOLATION OF CONSTITUTIONALLY PROTECTED FREE SPEECH AFTER IT ORDERED SCENES CUT FROM THE MOVIE SCHINDLER'S LIST DIRECTOR STEVEN SPIELBERG'S REPRESENTATIVES PULLED THE MOVIE NOMINATED FOR AN ACADEMY AWARD IN THE US FROM PHILIPPINE THEATERS TO PROTEST THE CENSORS' CUTS OF NUDE AND SEX SCENES THE MOVIE RECOUNTS HOW A WORLD WAR II BUSINESSMAN SAVED JEWS FROM NAZI GAS CHAMBERS THE BOARD'S CHIEF CENSOR SAID I DON'T CARE ABOUT ARTISTRY DECLARING THE OFFENDING SCENES IMMORAL AND NOT WITHIN THE CULTURE OF FILIPINOS BARONESS THATCHER THE FORMER BRITISH PRIME MINISTER PROPOSED A LINK BETWEEN NORTH AMERICA AND EUROPE TO CREATE FREE TRADE ACROSS THE ATLANTIC THE INFLUENTIAL LADY THATCHER'S SUGGESTION AT A LONDON CONFERENCE ON WORLD TRADE COSPONSORED BY THE WALL STREET JOURNAL EUROPE ECHOES UNSUCCESSFUL US LEGISLATIVE EFFORTS AND SENTIMENTS OF US UNIONS FOR A EUROPEAN TRADE BRIDGE BUT THE EUROPEAN UNION SAID AN ACCORD WITH THE US ISN'T A TOP PRIORITY THE 12NATION BLOC IS NEGOTIATING TRADE DEALS WITH THE BALTICS AND IN EAST AND CENTRAL EUROPE A WEALTH WALL IS DIVIDING WESTERN EUROPE FROM FORMER EAST BLOC STATES LADY THATCHER SAID DECLARING THE SOLUTION WAS TRADE RATHER THAN AID SHE SUPPORTED MOVES TO INTEGRATE CHINA AND RUSSIA INTO INTERNATIONAL TRADING CIRCLES LADY THATCHER ALSO FAULTED US EFFORTS TO PRY OPEN JAPAN'S MARKETS AND FAVORED FREEING THEM FROM REGULATION AND INTERFERENCE SHE PREDICTED JAPAN WOULD CREATE ITS OWN SPHERE OF INFLUENCE IN FASTGROWING ASIA TO RIVAL THE EU AND THE NORTH AMERICAN TRADE ZONE A ONEDAY STRIKE IN BOLIVIA SHUT DOWN COMMERCE AND TRANSIT IN THREE REGIONS AND DISRUPTED AIR SERVICE IN LA PAZ CIVIC GROUPS DEMANDED GOVERNMENT IMPROVEMENTS IN HEALTH CARE EDUCATION AND ROADS WHEN THE TUNNEL UNDER THE ENGLISH CHANNEL BETWEEN BRITAIN AND FRANCE STARTS SERVICE PERHAPS IN THE SPRING EACH OF THE 38 TRAIN ENGINES WILL BE NAMED AFTER AN OPERA OR OPERA SINGER THE FIRST ENGINE GOT ITS MONIKER LUCIANO PAVAROTTI 9403040128 940304 WORLD STOCK MARKETS JAPAN MARKETS STAY VOLATILE VEX TRADERS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S FINANCIAL MARKETS ARE GIVING TRADERS A NERVERACKING ROLLERCOASTER RIDE THAT ISN'T LIKELY TO END SOON STOCK AND BOND PRICES AND THE YEN HAVE BEEN GYRATING WILDLY SO FAR THIS YEAR TEN TIMES SINCE THE BEGINNING OF THE YEAR THE NIKKEI AVERAGE HAS MOVED AT LEAST 2 IN ONE DAYTHE EQUIVALENT OF AN 80POINT SHIFT IN THE DOW JONES INDUSTRIAL AVERAGE THE YEN HAS SWUNG BETWEEN 113 AND 101 TO THE DOLLAR THE GOVERNMENT BOND MARKET HAS PLUNGED WITH YIELDS RISING TO 36 FROM 295 WIPING 40 BILLION OUT OF THE MARKET TRADERS SAY THE FACTORS ROCKING THE MARKETS INCLUDING POLITICAL TURMOIL INTERNATIONAL TRADE FRICTION AND BILLIONDOLLAR SPENDING PACKAGES AREN'T LIKELY TO DISAPPEAR FOR A LONG TIME TOKYO HAS ALWAYS HAD UNUSUALLY VOLATILE MARKETS OWING IN PART TO A RELATIVELY SMALL NUMBER OF BIG SHAREHOLDERS AND BONDHOLDERS WHEN A COMPANY SUCH AS NIPPON LIFE INSURANCE WHICH CONTROLS 300 BILLION IN LOANS AND INVESTMENTS MAKES A MARKET MOVE IT'S USUALLY A BIG ONE AND CAN EASILY SEND PRICES ON A ROLLERCOASTER RIDE BUT SEVERAL FORCES ARE CONVERGING TO MAKE TOKYO'S VOLATILITY ESPECIALLY INTENSE ONE IS THE SHAKY POLITICAL SITUATION THAT FINDS A COALITION GOVERNMENT LEADING A NATION ACCUSTOMED TO 38 YEARS OF RULE BY A SINGLE POLITICAL PARTY THE GOVERNMENT RECENTLY PROPOSED A 140 BILLION ECONOMIC STIMULUS PACKAGE AIMED AT BOLSTERING JAPAN'S SLUGGISH ECONOMY WHILE IT MAY HELP THE ECONOMY THE PROGRAM'S HIGH PRICE TAG HAS GIVEN THE BOND MARKET A BAD CASE OF THE JITTERS THEN THERE IS THE CONTINUING TRADE FRICTION WITH THE US WHICH HAS SENT THE VALUE OF THE YEN SOARING JAPANESE COMPANIES DEPEND ON EXPORTS FOR MUCH OF THEIR PROFITS AND A HIGHER YEN MAKES THEIR GOODS MORE EXPENSIVE IN FOREIGN MARKETS THE PACE IS TAKING A TOLL EVEN ON TOKYO'S SEASONED TRADERS A LONGTERM VIEW SAID RICHARD LEMMERMAN THE HEAD OF STOCK ARBITRAGE AT LEHMAN BROTHERS JAPAN IS 30 SECONDS LONGTERM HE MOANS THAT YOU DON'T HAVE TIME TO DO ANYTHING BUT TRADE EVERYBODY WILL PASS OUT IF IT KEEPS UP LIKE THIS ACROSS TOWN AT SUMITOMO LIFE INSURANCE CO BOND INVESTMENT MANAGER TOMONARI KADOUMI IS GIVING UP ON HIS MARKET WE'RE SUPPOSED TO CLOSE OUR BOOKS FOR THE END OF THE JAPANESE FISCAL YEAR IN MARCH SO WE WANTED A CALM MARKET HE SAID WE'VE STOPPED ALL NEW INVESTMENTS MEANTIME HE AND OTHER MANAGERS CHUGALUG CAFFEINELACED JAPANESE HEALTH DRINKS AND CHINESE TEA AS THEY STARE INTO THEIR COMPUTER SCREENS HOPING THE MARKET WILL SLOW DOWN SOON WHILE THE MARKETS ARE SCARY THEY CAN ALSO BE VERY LUCRATIVE FOR THE NIMBLE TRADERS MAKING ALL THE RIGHT MOVES CAN EARN IN A DAY WHAT THEY MIGHT ORDINARILY EARN IN A YEAR IT'S GOOD FOR US NO MATTER WHICH WAY THE MARKET GOES AS LONG AS IT'S VOLATILE SAID TOM STEEN MANAGER OF PACIFIC RIM DERIVATIVES AT BARING SECURITIES JAPAN LTD ALTHOUGH SOME BIG INVESTORS ARE BELIEVED TO HAVE BEEN BURNED BADLY IN THE RECENT VOLATILITY BARING IS THOUGHT TO HAVE MADE SEVERAL MILLION DOLLARS BY TAKING ADVANTAGE OF THE TURMOIL THAT STRUCK THE FUTURES MARKET DURING ONE OF THE FREQUENT POLITICAL UPSETS OF RECENT WEEKS THE FIRM WON'T COMMENT TRADERS ALSO SUGGEST THAT INDUSTRIAL BANK OF JAPAN LTD MAY HAVE BEEN A BIG WINNER PROFITING ON THE QUICK SALE OF MORE THAN 10 BILLION IN BOND FUTURES AHEAD OF THE BOND MARKET'S BIG PLUNGE IBJ WON'T COMMENT THE TRADING PROFITS ARE IN SHARP CONTRAST TO THE DRUBBING THAT MANY OTHER LONGTERM INVESTORS HAVE TAKEN DURING THE PAST SEVERAL WEEKS FOR FUNDAMENTAL INVESTORS IT'S BEEN A SLAUGHTER SAID RICHARD BREITENECKER A TRADER AT CRESVALE INTERNATIONAL LTD I'D HATE TO BE AN EQUITIES SALESMAN HERE SOME OF THE MARKET MOVES HAVE BEEN OUTRIGHT CONFOUNDING TO THE EXPERTS MANY ECONOMISTS IN TOKYO SAY ECONOMIC FUNDAMENTALS SUGGEST THE YEN SHOULD HAVE MOVED TOWARD 115 YEN TO THE DOLLAR NOT THE 100YEN LEVEL THAT HAS ACTUALLY BEEN THE CASE EVEN SAVVY SOROS FUND MANAGEMENT TOOK A 600 MILLION BEATING WHEN THE YEN WENT THE WRONG WAY ALTHOUGH A SUBSTANTIAL PORTION OF THAT LOSS HAS SINCE BEEN RECOUPED MANY EUROPEAN STOCK MARKETS REBOUNDED FROM THE PREVIOUS SESSION'S BROAD SELLOFFS BUT SENTIMENT WAS UNSETTLED LONDON STOCKS ENDED MIXED AS EARLY GAINS GAVE WAY TO PRESSURE FROM WEAK MARKETS FOR FUTURES AND BRITISH GOVERNMENT BONDS FRANKFURT SHARES RECOVERED SLIGHTLY HELPED BY US STOCK AND BOND MARKETS' REBOUNDS A DAY EARLIER TOKYO STOCKS FELL BROADLY THURSDAY IN TRADING TAMED BY UNCERTAINTIES ABOUT FINANCIAL MARKETS ABROAD WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11487 DOWN 033 REFLECTING LOWER AMERICAN AND ASIA/PACIFIC MARKETS AND HIGHER EUROPEAN MARKETS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10478 UP 138 OR 13 WITH QTC RESOURCES OF AUSTRALIA POSTING A 46 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 22578 DOWN 768 OR 33 WITH KUALA LUMPUR KEPONG OF MALAYSIA SLIDING 64 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 16 POINTS TO 32465 DOWN FROM THE INTRADAY HIGH OF 32786 THE FT 30STOCK INDEX ROSE 84 POINTS TO 25402 VOLUME SHRANK TO 6773 MILLION SHARES FROM 7633 MILLION SHARES A DAY EARLIER WEAKER GILTS OR GOVERNMENT BONDS AND STOCKINDEX FUTURES PRESSURED THE STOCK MARKET UNDERMINED FURTHER BY A LOWER OPENING IN NEW YORK NEWS THAT GERMANY'S BUNDESBANK HAD LEFT INTEREST RATES UNCHANGED DIDN'T SURPRISE LONDON INVESTORS YET ADDED TO THE BEARISH FACTORS FUELING FEARS THAT WORLD INTEREST RATES ARE ON THE RISE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1757 POINTS TO 203790 AFTER SKIDDING 4672 POINTS THE PREVIOUS DAY BUT GIVEN RECENT BONDMARKET VOLATILITY TRADING WAS CAUTIOUS AND ACTIVITY DWINDLED IN PARIS STOCKS ENDED HIGHER THOUGH OFF THEIR HIGHS REBOUNDING FROM THE PREVIOUS DAY'S ROUT IN AMSTERDAM SHARES RALLIED ON BETTERTHANEXPECTED CORPORATE EARNINGS AS WELL AS GAINS ON OTHER BOURSES A FIRMER US DOLLAR AND HOPES THAT EUROPEAN CENTRAL BANKS WILL RESUME CUTTING SHORTTERM INTEREST RATES IN MADRID STOCKS SURGED 14 BUOYED BY THE SPANISH CENTRAL BANK'S SURPRISE CUT IN ITS BENCHMARK INTEREST RATE TO 8 FROM 85 IN MILAN A MARKET MEASURE INCLUDING ISSUES TRADED ELECTRONICALLY JUMPED 14 IN A TECHNICAL RECOVERY AIDED SIMPLY BY TRANQUILITY IN OTHER FINANCIAL MARKETS IN ZURICH EQUITIES ROSE 12 ON BARGAIN BUYING AMONG BLUE CHIPS IN GENERALLY CALMER DEALINGS IN STOCKHOLM SHARES RECOVERED SOME LOSSES CAUSED BY RECENT BONDMARKET TURMOIL BUT GAVE UP HIGHS WHEN THE MARKET WAS UP 15 BECAUSE OF THE THREAT OF A GERMAN METALWORKERS STRIKE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 47185 POINTS WEDNESDAY LOST 13891 TO 1960586 IN TRADING FRIDAY THE NIKKEI INDEX ROSE 20632 POINTS TO CLOSE THE MORNING SESSION AT 1981218 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES DIVING FROM 4012 MILLION SHARES A DAY EARLIER RETREATING ISSUES TROUNCED ADVANCING ISSUES 783248 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SKIDDED 2954 POINTS WEDNESDAY DECLINED 1361 TO 160233 DESPITE A MODERATE REBOUND IN THE JAPANESE BOND MARKET TRADING WAS QUIET GIVEN THE JAPANESE YEN'S RENEWED STRENGTH IN CURRENCY DEALINGS AND PERSISTENT WORRIES ABOUT JAPANESE INTEREST RATES INVESTORS WEREN'T DISMAYED BY REPORTS THAT THE US WOULD REVIVE A PROCEDURE ALLOWING THE GOVERNMENT TO TAKE PUNITIVE TRADE SANCTIONS AGAINST JAPAN IF IT IS JUDGED TO HAVE UNFAIR TRADE POLICIES INDEED WHILE TRADE SANCTIONS WERE CONSIDERED UNLIKELY GIVEN THE US CONCERN ABOUT IMPLICATIONS FOR THE GLOBAL ECONOMY INVESTORS BELIEVED THE THREAT OF SUCH ACTION MAY PROMPT THE JAPANESE GOVERNMENT INTO ACTION TO PROVIDE BALM FOR JAPAN'S ECONOMIC AILMENTS IN HONG KONG SHARES LOST GROUND TO END AT THEIR WEAKEST LEVEL IN 2 1/2 MONTHS THE MARKET RALLIED AT THE OPENING BUT QUICKLY FELL DESPITE A PROVISION IN HONG KONG'S FISCAL 1995 BUDGET TO CUT CORPORATE INCOME TAXES AS INVESTORS WERE MORE CONCERNED ABOUT INTEREST RATES IN SINGAPORE PRICES SLUMPED 18 ON LOWERTHANEXPECTED EARNINGS IN THE SHIPYARD SECTOR WHILE THE BROAD MARKET DRIFTED AMID CONCERN ABOUT VOLATILE DEALINGS AND INTERESTRATE WORRIES IN OVERSEAS BOURSES IN KUALA LUMPUR STOCKS SANK 14 AFTER EARLY GAINS FROM BARGAIN HUNTING WERE WIPED OUT WHEN INVESTORS SOLD QUICKLY AS THE TOKYO MARKET DROPPED PRICES FELL ACROSS THE BOARD IN HEAVY PROFITTAKING ON NEGATIVE CUES FROM OTHER BOURSES IN TAIPEI THE MARKET REBOUNDED ALMOST ERASING THE PREVIOUS DAY'S DECLINE BUT VOLUME WAS THE LIGHTEST THIS YEAR AS THE LEVEL OF MARGIN LOANS FOR BUYING STOCKS ON CREDIT HAS DECREASED SO HAS THE SELLING PRESSURE THAT HAD DRIVEN THE MARKET DOWN ABOUT 15 DURING THE PAST THREE WEEKS MANILA SHARES FELL AS AN EARLY TECHNICAL RALLY WAS STOPPED BY PROFITTAKING A CAUTIOUS MOOD PERVADED THE MARKET BECAUSE OF OVERSEAS EXCHANGES' WEAKNESS WHICH ALSO TOOK ITS TOLL IN WELLINGTON WHERE EQUITIES LOST EARLY GAINS TO FINISH LOWER DEEPENING THE MARKET'S LOSS TO ABOUT 9 SINCE EARLY FEBRUARY IN SEOUL PRICES FELL FOR THE THIRDSTRAIGHT DAY AS BEARISHNESS DIDN'T LET UP INDIVIDUALS SOLD HEAVILY WHILE INSTITUTIONS SAT ON THE SIDELINES 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 9403040127 940304 THURSDAY'S MARKETS BOND PRICES SLUMP ON FEARS OF TRADE WAR WITH JAPAN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL FEARS THAT A USJAPANESE TRADE WAR WILL STOKE INFLATION SENT THE BOND MARKET INTO ANOTHER TAILSPIN STOCKS AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 732 POINTS TO 382442 AND STANDARD & POOR'S 500STOCK INDEX LOST 180 TO 46301 BUT THE NASDAQ COMPOSITE INDEX ROSE 111 TO 78458 ALL EYES WERE FIXED ON THE BOND MARKET FOR THE SECOND TIME THIS WEEK BOND PRICES SLUMPED THE YIELD ON THE TREASURY'S 30YEAR BOND SHOT UP TO 683 FROM 677 WEDNESDAY ANALYSTS SAID NEWS OF ROBUST RETAIL SALES LAST MONTH DEPRESSED PRICES IN THE MORNING BUT THE LOSSES WIDENED IN THE AFTERNOON AMID REPORTS THAT PRESIDENT CLINTON HAD DECIDED TO RENEW A TOUGH TRADE PROVISION A MOVE THAT WAS CERTAIN TO RATCHET UP TENSIONS WITH TOKYO IT'S CLEAR THAT THE MARKET FEARS OUTRIGHT TRADE DISPUTES SAYS JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS ALSO SPOOKING THE MARKET WAS MORE GOOD NEWS ON THE ECONOMIC FRONT CAR MAKERS REPORTED THAT SALES OF AUTOS AND LIGHT TRUCKS CONTINUED AT A STRONG PACE LAST MONTH DEFYING EXPECTATIONS OF SLACKENING DEMAND AND SLOWER SALES BECAUSE OF BAD WEATHER IN THE PERVERSE WORLD OF BOND TRADING SIGNS OF ECONOMIC STRENGTH ARE WORRISOME IN THAT THEY SUGGEST THAT INFLATION MAY BE IN THE OFFING WHILE SOME ANALYSTS ARGUED THAT INVESTORS WERE NERVOUS THAT A TRADE WAR WITH JAPAN WOULD REDUCE COMPETITION IN THE US AND INCREASE INFLATIONARY PRESSURES MR LIPSKY SAID UNCERTAINTY ABOUT THE IMPLICATIONS OF A TRADE DISPUTE WAS ENOUGH TO UPSET BOND TRADERS YOU JUST DON'T KNOW WHAT'S GOING TO HAPPEN BUT THE CHANCES ARE THAT IT'S NOT GOOD HE SAID AS LONG AS TODAY'S UNEMPLOYMENT REPORT SUPPORTS THE PICTURE OF A STURDY ECONOMY HE BELIEVES THE FEDERAL RESERVE WILL ACT FAIRLY QUICKLY TO RAISE SHORTTERM INTEREST RATES AGAIN MEANWHILE SOME ECONOMISTS FEEL THAT EVEN IF TODAY'S JOBS REPORT IS WEAK IT WILL DO LITTLE TO RESTORE CONFIDENCE IN THE BOND MARKET BEFORE AN AURA OF CALM CAN RETURN TO THE BOND MARKET WE HAVE TO GET THIS HEDGEFUND SELLING OUT OF THE WAY AND GET A SENSE THAT ECONOMIC ACTIVITY IS SLOWING FOR REASONS OTHER THAN THE WEATHER SAYS STEPHEN SLIFER CHIEF FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 028 TO 11723 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2918 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 950 ISSUES ROSE AND 1190 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE DROPPED MORE THAN 3/4 POINT OR OVER 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17105 MARKS AND 10395 YEN COMPARED WITH 17040 MARKS AND 10410 YEN WEDNESDAY 9403040126 940304 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND THREE EXECUTIVES WERE PROMOTED AT THIS BANK HOLDING COMPANY JEFFREY D KELLY 40 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF INVESTMENTS WAS NAMED EXECUTIVE VICE PRESIDENT OF INVESTMENTS ROBERT J ONDERCIK 47 FORMERLY SENIOR VICE PRESIDENT OF CREDIT WAS NAMED EXECUTIVE VICE PRESIDENT OF CREDIT ADMINISTRATION AND J ARMANDO RAMIREZ 38 FORMERLY VICE PRESIDENT OF MERGERS AND ACQUISITIONS WAS NAMED SENIOR VICE PRESIDENT OF MERGERS AND ACQUISITIONS THEIR DUTIES WILL NOT CHANGE 9403040125 940304 ECONOMY FACTORY ORDERS ROSE 21 IN JANUARY DESPITE WEATHER FOR SIXTH GAIN IN ROW BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US MANUFACTURERS' ORDERS ROSE IN JANUARY FOR THE SIXTH MONTH IN A ROW ONE OF THE FEW ECONOMIC SIGNALS THAT HAVEN'T BEEN SET BACK BY THIS YEAR'S BITTER WINTER THE COMMERCE DEPARTMENT SAID FACTORY ORDERS ROSE 21 FROM DECEMBER WHEN THEY INCREASED 14 BOOKINGS FOR NONDURABLE GOODS THOSE INTENDED TO LAST LESS THAN THREE YEARS EDGED UP 04 IN JANUARY THE DEPARTMENT SAID ORDERS FOR DURABLES ROSE 37 THE SAME AS IN A PRELIMINARY REPORT ISSUED LAST WEEK THE NUMBERS INDICATE THE INCREASING STRENGTH OF THE ECONOMY SAID JOSEPH LIRO CHIEF ECONOMIST OF SG WARBURG & CO IN NEW YORK HE ADDED THAT HE EXPECTS THE MOMENTUM TO CONTINUE THROUGH 1994 BUT DONALD MAUDE AN ECONOMIST AT SCOTIAMCLEOD IN NEW YORK NOTED THAT THERE WAS A BIG BULGE IN ORDERS FOR AIRCRAFT AND AIRCRAFT PARTS A CATEGORY THAT CHANGES A LOT FROM MONTH TO MONTH CONSIDERING THE LAG TIME BETWEEN ORDERS AND PRODUCTION THE INCREASE DOESN'T CARRY AS MUCH SIGNIFICANCE FOR NEARTERM PRODUCTION ACCORDING TO MR MAUDE HE SAID HE EXPECTS THE ECONOMY TO CONTINUE GETTING STRONGER BUT AT A MORE SUBDUED RATE UNFILLED ORDERS FOR BOTH DURABLE AND NONDURABLE GOODS INCREASED IN JANUARY SIGNALING THE POSSIBILITY OF MORE FACTORY EMPLOYMENT IN A SEPARATE REPORT THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS PLUNGED 57000 LAST WEEK TO 318000 FROM A REVISED 375000 THE PREVIOUS WEEK OFFICIALS SAID CLAIMS MAY HAVE BEEN REDUCED BECAUSE OF THE MONDAY HOLIDAY CLAIMS AVERAGED 352500 IN THE FOUR WEEKS ENDED FEB 26 DOWN FROM A REVISED 375000 FOR THE FOUR WEEKS ENDED FEB 19 ECONOMISTS CONSIDER THE FOURWEEK AVERAGE A BETTER GUIDE TO LABORMARKET CONDITIONS THAN THE WEEKLY FIGURE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9403040124 940304 WHO'S NEWS CLINTON TAPS CHONG A REPUBLICAN LAWYER TO FILL FCC VACANCY WASHINGTON PRESIDENT CLINTON CHOSE RACHELLE B CHONG A SAN FRANCISCO LAWYER TO FILL THE VACANT REPUBLICAN SEAT ON THE FEDERAL COMMUNICATIONS COMMISSION THE PRESIDENT IS ALSO EXPECTED TO NAME NANCY NESS A LAWYER FORMER INVESTMENT BANKER AND DEMOCRATIC FUNDRAISER TO FILL THE REMAINING VACANCY AT THE FIVEMEMBER COMMISSION ACCORDING TO PEOPLE FAMILIAR WITH THE SELECTION PROCESS MS NESS'S NOMINATION IS EXPECTED TO BE ANNOUNCED LATER THIS MONTH TELECOMMUNICATIONS BROADCASTING AND CABLE COMPANIES HAVE BEEN CLOSELY MONITORING APPOINTMENTS TO THE COMMISSION WHICH WILL BE DEVELOPING RULES OVER THE NEXT FEW YEARS THAT WILL GUIDE THE CONVERGENCE OF THESE MAJOR INDUSTRIES MS CHONG 35 YEARS OLD IS A PARTNER AT GRAHAM & JAMES WHERE SHE HEADS THE REGULATORY DEPARTMENT AND SPECIALIZES IN TELECOMMUNICATIONS ISSUES SHE HAS REPRESENTED MCCAW CELLULAR COMMUNICATIONS CORP AND PACIFIC TELESIS GROUP'S CELLULAR UNIT IN TARIFF AND OTHER REGULATORY MATTERS MS CHONG HAD PRACTICED BEFORE THE FCC IN THE MID1980S AS A LAWYER IN WASHINGTON THE PARTY IN POWER IS PROHIBITED FROM HAVING MORE THAN THREE OF THE COMMISSION'S FIVE MEMBERS THE REPUBLICAN SLOT HAS BEEN VACANT SINCE LAST SPRING AND A DEMOCRATIC SEAT OPENED UP EARLIER THIS YEAR WHEN COMMISSIONER ERVIN DUGGAN LEFT TO HEAD THE PUBLIC BROADCASTING SERVICE THE TWO APPOINTEES WILL JOIN CHAIRMAN REED HUNDT AND COMMISSIONER JAMES QUELLO BOTH DEMOCRATS AND COMMISSIONER ANDREW BARRETT A REPUBLICAN 9403040123 940304 ECONOMY FEBRUARY CAR TRUCK SALES ROSE 199 TO SET 2YEAR RECORD FOR SELLING PACE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF NEW CARS AND TRUCKS IN THE US SURGED 199 IN FEBRUARY FROM A YEAR EARLIER TO THE HIGHEST SEASONALLY ADJUSTED SALES PACE IN MORE THAN TWO YEARS DESPITE EXTENDED PERIODS OF MISERABLE WEATHER IN MANY PARTS OF THE COUNTRY SOMETHING THAT WORRIED SOME AUTOINDUSTRY OFFICIALS AMERICANS BOUGHT 1150648 CARS AND LIGHT TRUCKS BOTH IMPORTED AND NORTH AMERICANBUILT IN FEBRUARY THAT WAS EQUIVALENT TO A SEASONALLY ADJUSTED SALES PACE OF 155 MILLION VEHICLES A YEAR WELL ABOVE THE INDUSTRY'S 148 MILLION PACE IN THE PREVIOUS THREE MONTHS IN FEBRUARY 1993 THE SALES RATE WAS 129 MILLION VEHICLES A YEAR GENERAL MOTORS CORP AND CHRYSLER CORP BUOYED BY STRONG GAINS IN BOTH CARS AND LIGHT TRUCKS EACH SEIZED MORE MARKET SHARE AT THE EXPENSE OF FORD MOTOR CO AND THE JAPANESE AUTO MAKERS GM'S MARKET SHARE JUMPED 18 PERCENTAGE POINTS IN FEBRUARY TO 345 AND CHRYSLER'S SHARE ROSE TO 153 FROM 15 FORD'S SHARE SKIDDED 16 POINTS TO 252 EVEN SO FORD'S SALES ROSE 13 TO 289794 UNITS AND ROSS ROBERTS THE GENERAL MANAGER OF THE COMPANY'S FORD MARKETING DIVISION WAS CROWING ABOUT RECORD TRUCK SALES AND STRONG CAR DELIVERIES WE WERE SHOCKED AT THE MARKET'S STRENGTH CONSIDERING THE WEATHER MR ROBERTS SAID THE BUYING ATTITUDE IS AWFULLY GOOD RIGHT NOW THE TRUCK INDUSTRY IS JUST ABSOLUTELY ON FIRE IT'S GROWING BEYOND OUR WILDEST EXPECTATIONS SALES OF MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS ROSE 238 IN FEBRUARY FROM A YEAR EARLIER AND SALES OF PASSENGER CARS EDGED UP 41 THE BOOM IN TRUCK SALES HAS FORCED DETROIT TO ADD MORE PRODUCTION CAPACITY FOR LIGHT TRUCKS THE BIG THREE ARE TRYING TO KEEP UP WITH GROWING TRUCK DEMAND BUT WANT TO DO IT WITHOUT BUILDING NEW ASSEMBLY PLANTS WE HAVE BEEN PLAYING CATCHUP WITH TRUCKS FOR THE LAST 12 MONTHS SAID J MICHAEL LOSH GM'S GROUP VICE PRESIDENT OF SALES AND MARKETING WE'VE BEEN ADDING TRUCK PRODUCTION EVERY MONTH SINCE THEN FOR SALE IN THE US TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURISTDELIVERY SALES OF IMPORTED MODELS YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9403040122 940304 CREDIT MARKETS MARKET TIMERS HELP PUSH JUNK BONDS TO MORE DECLINES BY LAURA JERESKI AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL INVESTORS ARE YANKING THEIR MONEY OUT OF JUNKBOND MUTUAL FUNDS 730 MILLION FLOWED OUT IN THE LATEST WEEK ACCORDING TO AMG DATA SERVICES OF ARCATA CALIF THAT OUTFLOW IS AMONG THE LARGEST EVER IN A SINGLE WEEK AND IT SHARPLY REVERSES A FOURMONTH PATTERN OF WEEKLY INFLOWS INTO THE NATION'S 50 BILLION OR SO OF HIGHYIELD JUNKBOND FUNDS SO FAR MOST OF THE DEPARTING INVESTORS ARE MONEY MANAGERS OF THE TRIGGERHAPPY VARIETY KNOWN AS MARKET TIMERS AND NOT SMALL INVESTORS BUT THE SCOPE OF THE TIMERS' WITHDRAWALS HAS PRESSURED HIGHYIELD JUNKBOND PRICES ACROSS THE BOARD YESTERDAY WAS ANOTHER BAD DAY IN THE BOND MARKET AND JUNK WAS NO EXCEPTION JUNK PRICES FAILED TO SUSTAIN AN INITIAL RALLY AND MANY FELL 1/2 POINT OR 5 FOR EACH 1000 OF BONDS AMONG JUNK BONDS EVERYTHING IS BEING HIT SAID MARTIN S FRIDSON A MANAGING DIRECTOR AT MERRILL LYNCH & CO JUNKBOND PRICES ARE DOWN THIS WEEK AS MUCH AS THREE POINTS OR 30 FOR EVERY 1000 OF DEBT WHILE THE BENCHMARK 30YEAR TREASURY HAS FALLEN THIS WEEK ABOUT 2 1/8 POINTS AMONG THE BIGGEST LOSERS ARE RJR NABISCO INC 925 SENIOR NOTES DUE 2013 OFF 85 POINTS TO 96 EVEN SOME BELLWETHER JUNK ISSUES HAVE TAKEN A BEATING FORT HOWARD 925 SENIOR NOTES DUE 2001 HAVE FALLEN TO 1005 FROM 1025 A WEEK AGO OWENSILLINOIS 11 SENIOR DEBENTURES DUE IN 2003 A 1 BILLION ISSUE CLOSED AT 11325 OFF FROM 115 A WEEK BEFORE IT'S THE SECOND TIME IN LESS THAN A YEAR THAT MONEY MANAGERS TRYING TO TIME THEIR INVESTMENTS HAVE RATTLED THE JUNKBOND MARKET LAST SUMMER RAPIDFIRE TRADERS YANKED HUNDREDS OF MILLIONS OF DOLLARS OUT OF JUNK MUTUAL FUNDS EVEN THOUGH INTEREST RATES WERE FALLING ONLY TO PLOW THE MONEY BACK INTO THE FUNDS WITHIN WEEKS AGAIN THE TIMERS SEEM TO BE FLEEING AT AN ODD MOMENT THEY PUSHED THE ALARM BUTTON LARGELY BECAUSE THE PRICE OF US TREASURY BONDS HAD SLUMPED THEY IGNORED THEIR USUAL PREMISE THAT A STRENGTHENING ECONOMY IS GOOD NEWS FOR JUNKBOND ISSUERS COMPANIES WITH MUCH TO GAIN FROM AN ECONOMIC REBOUND THE SENSE OVERALL IS THAT THERE MAY BE MORE TO GO IN THE WAY OF JUNKBOND PRICE DECLINES SAID MR FRIDSON IT ALL DEPENDS ON TREASURYS MEANWHILE SOME MUTUAL FUNDS ARE UNLOADING JUNKBOND HOLDINGS INTO A FALLING MARKET THREE OF KEMPER SECURITIES' EIGHT HIGHYIELD FUNDS WERE AMONG THE HARDEST HIT BY THE MARKET TIMERS THEY PULLED OUT 425 MILLION IN THE PAST WEEK REDUCING ASSETS IN THOSE FUNDS TO ABOUT 35 BILLION ACCORDING TO MICHAEL MCNAMARA A KEMPER FUND MANAGER LESS THAN 100 MILLION OF MONEY CONTROLLED BY TIMERS REMAINS IN KEMPER FUNDS THE TIMERS' PULLOUT IS LARGELY FINISHED HE SAID BECAUSE THE TIMERS CAN SWING IN AND OUT SO VIOLENTLY KEMPER HAS BEEN KEEPING AS MUCH AS 15 OF THE ASSETS OF THOSE FUNDS IN HIGHYIELD BONDS THAT ARE RELATIVELY EASY TO TRADE SUCH AS GOVERNMENT BONDS OF LESSDEVELOPED COUNTRIES KNOWN AS BRADY BONDS WE KEEP THAT MUCH IN LIQUID NAMES SAID MR MCNAMARA SO IT'S EASY TO RAISE THE MONEY IN ORDER TO PAY DEPARTING SHAREHOLDERS IF THEY CAME BACK IN THEY'D BE JUST AS TRIGGERHAPPY HE SAID THAT'S NOT ANYTHING WE'RE LOOKING FORWARD TO ESPECIALLY SINCE THEIR THRESHOLD FOR MOVING OUT HAS GOTTEN MUCH MORE SENSITIVE FRED QUIRSFELD MANAGES A 25 BILLION BOND PORTFOLIO AT IDS FIXEDINCOME ADVISORS MINNEAPOLIS BASED ON RECENT WITHDRAWALS FROM THE FUND WHICH HOLDS EVERYTHING FROM GOVERNMENT BONDS TO JUNK THE OUTFLOW IS RUNNING AT A MONTHLY RATE OF 1/2 OR SO OF TOTAL ASSETS HE SAID HE HASN'T SOLD ANY JUNK HOLDINGS TO MEET WITHDRAWALS BUT BELIEVES MUCH OF THE RECENT SELLOFF IN JUNK COMES FROM FELLOW MUTUALFUND MANAGERS WHAT'S GOING ON IS PRETTY CLASSIC HE SAID MONEY MANAGERS WORRY THAT THERE WILL BE MUTUALFUND REDEMPTIONS AND FORCED SELLING DOWN THE ROAD MANAGERS OF SOME OF THE FUNDS HAVE GOTTEN SO ACCUSTOMED TO EXPERIENCING THE EFFECTS OF THE MARKET TIMERS THAT THEY TRY AND ANTICIPATE THE REDEMPTIONS BY DOING SOME SELLING IN ADVANCE OF A DIFFICULT PERIOD BUT THE MANAGERS FACE AN ADDITIONAL PROBLEM AS THEY TRY TO RAISE CASH MANY WALL STREET BOND DEALERS DON'T WANT TO HOLD BIG INVENTORIES SO THEY BID DOWN PRICES YOU GET KIND OF AN ILLIQUID MARKET WHERE THINGS GET MARKED DOWN MR QUIRSFELD SAID BECAUSE BONDS LOSE MARKET VALUE AS INTEREST RATES RISE WALL STREET FIRMS HAVE BEEN RELUCTANT TO HOLD BOND INVENTORIES INCLUDING JUNK BONDS AS A RESULT TRADERS HAVE BEEN LOWBALLING BIDS TO SELLERS TO DISCOURAGE THEM FROM SELLING SAY PEOPLE IN THE MARKET IN FACT TRADERS SAY THAT THE DEALERS THEMSELVES HAVE BEEN UNLOADING INTO THE MARKET THERE ARE NO TRADES WITHOUT A BUYER ON THE OTHER SIDE SAID KINGMAN PENNIMAN EXECUTIVE VICE PRESIDENT AT DUFF & PHELPS INVESTMENT RESEARCH CO AN INSTITUTIONAL RESEARCH FIRM THAT'S KEPT VOLUME LOW SO FAR BUT MR PENNIMAN SAID THE MARKET IS STILL FRAGILE AND THERE'S STILL ROOM FOR PRICES TO DROP AS MUCH AS THREE MORE POINTS IF SELLING PRESSURE INCREASES THERE'S BEEN A DRAMATIC CHANGE SINCE LAST THURSDAY WHEN PEOPLE COULDN'T FIND ANYTHING TO BUY TO NOW WHEN THEY CAN'T FIND ANYONE TO SELL TO HE SAID SOME MARKET PARTICIPANTS ARE HEARTENED BY THE PROSPECT OF TWO COMING HIGHYIELD CONFERENCES IN PUERTO RICO THAT WILL KEEP SOME PEOPLE OUT OF THE MARKET AT MUTUALFUND COMPANY T ROWE PRICE SPOKESMAN STEVE NORWITZ SAID IT'S NOT SURPRISING THAT HIGHER WITHDRAWALS PLAGUE PRICE'S 17 BILLION JUNKBOND FUND BECAUSE THERE'S NO DOUBT THAT THE HIGHYIELD AREA ATTRACTS MORE TRADINGORIENTED TYPES HE SAID THE FUND HAS KEPT ENOUGH CASH ON HAND TO SATISFY RECENT WITHDRAWALS AT VANGUARD GROUP MANAGERS ARE BRACING FOR MORE JUNK REDEMPTIONS BECAUSE THERE ARE MORE RISKTAKERS IN THE HIGHYIELD SECTOR AND THEY'RE MORE APT TO MOVE ON MARKET NEWS AND LOCK IN GAINS SPOKESMAN JOHN WORTH SAID BUT COMPANY OFFICIALS ARE HOPING THAT AN EXITFEE STRATEGY PUT IN PLACE LAST YEAR WILL MEAN FEWER WITHDRAWALS THAN ON PREVIOUS OCCASIONS WHEN THE MARKET SOURED LIKE T ROWE PRICE VANGUARD NOW LEVIES A 1 FEE ON JUNK REDEMPTIONS WITHIN THE FIRST YEAR OF INVESTMENT THE PRICES OF US TREASURY BONDS FELL STILL FURTHER WHEN FEARS OF A TRADE WAR WERE ADDED TO THE MARKET'S LIST OF WOES THE WHITE HOUSE SPOOKED THE JITTERY BOND MARKET BY ANNOUNCING THAT PRESIDENT CLINTON WOULD REINSTATE A TRADE PROVISION ALLOWING THE US TO USE SANCTIONS AGAINST ANY COUNTRY SEEN HAVING UNFAIR TRADE PRACTICES AMONG THE WORRISOME IMPLICATIONS FOR BONDHOLDERS FEWER COMPETITIVELY PRICED FOREIGN GOODS MIGHT MAKE THEIR WAY INTO THE US RAISING THE LIKELIHOOD OF IMPORTED INFLATION BONDHOLDERS WHO FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF THEIR FIXEDINCOME INVESTMENTS DROVE THE PRICE OF THE BENCHMARK 30YEAR TREASURY DOWN 26/32 POINT OR 8125 FOR EVERY 1000 OF DEBT IT CLOSED AT 92 16/32 TO YIELD 683 UP FROM 677 WEDNESDAY WHILE MOST TRADE ANALYSTS EXPECTED THIS KIND OF MOVE IT STILL TOOK BOND PRICES LOWER EVEN AFTER TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID DURING A TELEVISION INTERVIEW THAT REINSTATING THE RULE WASN'T THE FIRST STRIKE IN A TRADE WAR IS IT THE START OF A MINI TRADE WAR YES SAID MICHAEL STRAUSS ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC ADDED STEVE WOOD AN ECONOMIST AT BA SECURITIES INC ANY SORT OF TRADE RETRICTION TENDS TO LEAD TO HIGHER PRICES ON THE DOMESTIC SIDE MEANWHILE NEWS THAT SALES AT THE NATION'S CHAIN STORES WERE UP IN FEBRUARY FROM THE YEAREARLIER PERIOD ADDED TO BEARISH SENTIMENT DEAN WITTER REYNOLDS INC'S COMPOSITE INDEX OF SALES AT STORES OPEN AT LEAST A YEAR SHOWED SALES UP 65 YAMAICHI'S MR STRAUSS SAID IT WAS AN IMPRESSIVE GAIN GIVEN THAT FEBRUARY WAS ONE OF THE WORST WINTER MONTHS IN YEARS WHILE TRADING VOLUME WAS LIGHT TRADERS SAID THEY SAW MORE SELLING BY INTERNATIONAL ACCOUNTS AND SOME LARGE HEDGE FUNDS MOST MONEY MANAGERS LIKE MANY DESKS ON WALL STREET ARE WAITING TO SEE TODAY'S REPORT FROM THE LABOR DEPARTMENT ON FEBRUARY EMPLOYMENT MOST ECONOMISTS THINK THE REPORT WILL SHOW NONFARM PAYROLLS UP ABOUT 140000 FROM THE PREVIOUS MONTH AS SOON AS THE NUMBER IS RELEASED BOND PLAYERS WILL START BETTING ON WHETHER THE FEDERAL RESERVE WILL RAISE SHORTTERM RATES AGAIN THE FIRST RATE BOOST WAS FEB 4 THE DAY OF THE JANUARY EMPLOYMENT REPORT THE WAIT FOR ANOTHER MOVE BY THE FED IS A KEY REASON FOR THE RECENT SELLOFFS TRADERS SAY RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED MARCH 10 AND MATURE MARCH 9 1995 THE VOLATILE TREASURY MARKET CONTINUED TO KEEP ISSUERS ON THE SIDELINES ONLY 494 MILLION OF DEBT WAS SOLD DURING THE SESSION ALL FROM FEDERAL AGENCIES FEDERAL EXPRESS CORP WAS TO SELL 390 MILLION OF PASSTHROUGH CERTIFICATES BUT THE DEAL WAS POSTPONED BECAUSE OF THE MARKET CONDITIONS SAID KEVIN KELLY HEAD OF DEBT SYNDICATE AT GOLDMAN SACHS & CO WHICH WILL MANAGE THE OFFERING SIMILARLY MCI COMMUNICATIONS INC WAS LOOKING AT SELLING A TWOPART 500 MILLION DEBT OFFERING BUT A WEAK MARKET PUSHED THAT DEAL BACK ALSO A PERSON CLOSE TO THE DEAL SAID MEANWHILE A ROAD SHOW FOR 750 MILLION OF GLOBAL BONDS FROM THE BANK OF CHINA ENDED WEDNESDAY IN THE INVESTMENTGRADE MARKET SPREADS WERE SLIGHTLY TIGHTER IN ANEMIC TRADING PRICES FOLLOWED TREASURYS DOWN THE YIELD ON THE 6 5/8 S NOTES MATURING IN 2003 OF FORD MOTOR CREDIT CO A UNIT OF FORD MOTOR CO DROPPED SLIGHTLY ON NEWS THAT GENERAL MOTORS CORP AND CHRYSLER CORP HAD IMPROVED SALES IN FEBRUARY CALIFORNIA STOLE THE SHOW IN THE MUNICIPAL BOND MARKET WITH NEWS OF ITS PLAN TO LIST 33 BILLION OF BONDS OUTSTANDING ON THE NEW YORK STOCK EXCHANGE CALIFORNIA WILL BE THE ONLY MUNI ISSUER WITH BONDS TRADED ON THE EXCHANGE IN THE SECONDARY MARKET MUNIS CONTINUED TO WEAKEN BEFORE THE RELEASE OF THE FEBRUARY EMPLOYMENT DATA SET FOR THIS MORNING THE DATA ARE EXPECTED TO GIVE FURTHER CLUES ABOUT THE NEARTERM PATH OF US INTEREST RATES AT THE CHICAGO BOARD OF TRADE JUNE MUNICIPALBOND FUTURES SETTLED 26/32 LOWER PRICES IN THE CASH MARKET WERE DOWN ABOUT 3/8 POINT IN LATE DEALINGS TRADERS SAID MUNIS FELL WELL OVER A POINT IN CASH TRADING WEDNESDAY AS THEY CONTINUED TO DECLINE IN THE AFTERMATH OF THE FEDERAL RESERVE'S RATE TIGHTENING LAST MONTH FOR A SECOND DAY YIELDS ON MORTGAGEBACKED SECURITIES WIDENED TO GOVERNMENT BENCHMARKS THAT'S UNUSUAL BECAUSE MORTGAGES TEND TO DO WELL WHEN INTEREST RATES RISE AND PREPAYMENT FEARS EASE IN SECONDARY TRADING GINNIE MAE 7S FOR MARCH DELIVERY FELL 21/32 AT 98 31/32 FREDDIE MAC GOLD 7S WERE OFF 18/32 AT 99 8/32 AND FANNIE MAE 7S WERE OFF 18/23 AT 99 1/32 THE TREASURY'S 5 7/8 10YEAR NOTE A BENCHMARK FOR CURRENT COUPONS WAS OFF 17/32 AT 96 19/32 TO YIELD 634 SELLERS SWEPT INTO THE MARKET MAINLY FROM THE MORTGAGEBANKING COMMUNITY MORTGAGE BANKERS SOMETIMES SELL SECURITIES IN A FALLING MARKET ANTICIPATING THAT RISING RATES MAY CAUSE REFINANCING HOMEONERS TO RUSH TO LOCK IN A DESIRABLE RATE THEY SELL ESSENTIALLY TO MAKE ROOM FOR NEW BUSINESS MAJOR INSTITUTIONAL INVESTORS WITH LARGE HOLDINGS IN MORTGAGES ALSO HAVE BEEN SELLERS TRADERS SAY IN THE PRIMARY MARKET THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED A 2177 MILLION REMIC BACKED BY MULTIFAMILY MORTGAGE SECURITIES LED BY DAIWA SECURITIES AMERICA ALSO THE FEDERAL HOME LOAN MORTGAGE CORP ANNOUNCED AN 800 MILLION REMIC BACKED BY 30YEAR 65S AND ALSO ANNOUNCED INCREASES TO THREE PREVIOUS ISSUES TOTALING 700 MILLION IN THE ASSETBACKED MARKET ADVANTA CORP UNIT ADVANTA MORTGAGE CORP ISSUED 1745 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GENE COLTER CONTRIBUTED TO THIS ARTICLE 9403040121 940304 MONEYMARKET ASSETS FELL IN WEEKLY SURVEY WASHINGTON MONEYMARKET MUTUALFUND ASSETS SLID 112 BILLION TO 58678 BILLION FROM A REVISED 58790 BILLION FOR THE WEEK ENDED WEDNESDAY MARCH 2 THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 654 RETAIL MONEYMARKET MUTUALFUNDS ROSE BY 289 BILLION TO 4072 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS INCREASED BY 210 BILLION TO 31505 BILLION ASSETS OF 248 RETAIL TAXEXEMPT FUNDS ROSE BY 7913 MILLION TO 9216 BILLION ASSETS OF THE 284 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 401 BILLION TO 17957 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 230 TAXABLE MONEY MARKET FUNDS DROPPED BY 449 BILLION TO 15599 BILLION ASSETS OF 54 TAXEXEMPT FUNDS INCREASED BY 4761 MILLION TO 2358 BILLION 9403040120 940304 WHO'S NEWS MAXWELL LABORATORIES INC MAXWELL LABORATORIES INC SAN DIEGO SEAN MALOY VICE PRESIDENTFINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER WAS APPOINTED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENTOPERATIONS AND WAS ELECTED A DIRECTOR OF THIS ADVANCED TECHNICALSERVICES CONCERN INCREASING THE BOARD TO 10 GARY DAVIDSON 38 YEARS OLD CORPORATE CONTROLLER SUCCEEDS MR MALOY 36 AS VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER THE ADMINISTRATION POST WAS ELIMINATED 9403040119 940304 THE BUSINESS OF LAW JUDGE FINDS SUBSTANTIAL LIKELIHOOD' GM COMMITTED PERJURY IN PICKUP CASE BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE IN ANDERSON SC BLASTED GENERAL MOTORS CORP FINDING A SUBSTANTIAL LIKELIHOOD OF PERJURY AND THE SYSTEMATIC DESTRUCTION OF DOCUMENTS RELATED TO A CIVIL CASE INVOLVING THE AUTO MAKER'S 19731987 FULLSIZE PICKUPS WITH SIDESADDLE GASOLINE TANKS US DISTRICT COURT JUDGE G ROSS ANDERSON JR ALSO EXPRESSED IRRITATION IN A HEARING LAST FRIDAY THAT A SOUTH CAROLINA LAW FIRM REPRESENTING GM HAD AGREED TO HIRE HIS TWO LAW CLERKS AND PAID THEM 2500 STIPENDS BEFORE THEY CAME TO WORK IN HIS COURT THE RESULT JUDGE ANDERSON SAID WAS THAT HE HAD TO EXCLUDE THE CLERKS FROM THE GM CASE AND PLOW THROUGH THOUSANDS OF PAGES OF DOCUMENTS ON HIS OWN THE JUDGE'S STATEMENTS FIRST REPORTED BY THE WASHINGTON POST AND THE DETROIT NEWS REPRESENT A SETBACK FOR GM'S EFFORTS TO QUELL THE CONTROVERSY OVER ITS NOWDISCONTINUED PICKUPS PLAINTIFFS' ATTORNEYS AND SAFETY ADVOCATES HAVE CHARGED REPEATEDLY THAT GM EXECUTIVES COVERED UP EVIDENCE THAT THE COMPANY KNEW ITS TRUCKS HAD A PROPENSITY FOR LEAKING FUEL AND CATCHING FIRE IN SIDEON COLLISIONS IN 1992 AN ATLANTA JURY AWARDED THE FAMILY OF A YOUNG MAN KILLED IN A FIERY CRASH 105 MILLION GM DENIED EARLIER CHARGES OF DESTROYING EVIDENCE AND LAST YEAR RETAINED WILLIAM WEBSTER FORMER DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION TO INVESTIGATE MR WEBSTER HAS FILED A REPORT BUT GM HASN'T MADE HIS FINDINGS PUBLIC GM SIGNALED IT WILL MOVE AS EARLY AS TODAY TO ASK A HIGHER COURT TO FIND THE JUDGE'S STATEMENTS IMPROPER AND REMOVE THEM FROM THE PUBLIC RECORD GENERAL MOTORS STRONGLY DISAGREES WITH THE UNFOUNDED STATEMENTS OF JUDGE G ROSS ANDERSON JR ABOUT THE CONDUCT OF GM AND ITS LAWYERS THE COMPANY SAID STEPHEN MORRISON A SENIOR PARTNER IN THE COLUMBIA SC FIRM NELSON MULLINS RILEY & SCARBOROUGH SAID HIS FIRM HAD HIRED THE TWO LAW CLERKS ABOUT A YEAR BEFORE THEY REPORTED FOR WORK IN JUDGE ANDERSON'S COURT THE 2500 PAYMENTS WERE AGREED TO AS PART OF A COMMON PACKAGE OFFERED NEW ASSOCIATES HE SAID WE FEEL EVERYTHING WE'VE DONE IS BY THE BOOK IN LETTER AND SPIRIT MR MORRISON SAID JUDGE ANDERSON ISSUED HIS ORDER TO EXPLAIN HIS DECISION TO REMOVE HIMSELF FROM THE CASE BROUGHT BY MARK D CAMERON HIS BROTHER STEVEN W CAMERON AND STEVEN'S WIFE LAURIE CAMERON MARK AND STEVEN WERE BURNED IN A 1990 CRASH WHEN THEIR GM PICKUP BURST INTO FLAMES ACCORDING TO THEIR ATTORNEY JAMES E BUTLER JR GM MOVED TO HAVE JUDGE ANDERSON REMOVED FROM THE CASE AFTER HE GAVE A SPEECH AT A SEMINAR IN ATLANTA THAT MR BUTLER ATTENDED GM ARGUED THAT THE JUDGE'S REMARKS SHOWED PREJUDICE AGAINST DEFENSE LAWYERS IN AUTOMOTIVE PERSONAL INJURY CASES JUDGE ANDERSON REJECTED THE CHARGE BUT STEPPED ASIDE TO AVOID AN APPEARANCE OF BIAS 9403040118 940304 WHO'S NEWS CUSHMAN & WAKEFIELD INC CUSHMAN & WAKEFIELD INC NEW YORK FRANK W ZISKA JR WAS NAMED DIRECTOR OF US /CANADIAN OPERATIONS FOR THE CUSHMAN & WAKEFIELD/ROYAL LEPAGE REALESTATE JOINT INITIATIVE A NEW POSITION THE INITIATIVE WAS FORMED IN 1993 TO PROVIDE CANADIAN CLIENTS OF ROYAL LEPAGE AND US CLIENTS OF CUSHMAN & WAKEFIELD WITH CROSSBORDER REALESTATE INFORMATION AND SERVICES MR ZISKA 46 YEARS OLD WAS MOST RECENTLY A DIRECTOR AND BRANCH MANAGER AT CUSHMAN & WAKEFIELD 9403040117 940304 WHO'S NEWS SUNKYONG GROUP SUNKYONG GROUP SEOUL SOUTH KOREA JOHN B NANO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE SUNKYONG AMERICA TRADING OPERATION MR NANO 49 SUCCEEDS JAMES M DEMITRIEUS 46 WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF SUNKYONG AMERICA IN SEPTEMBER MR NANO WAS SENIOR VICE PRESIDENT OPERATIONS AND CHIEF FINANCIAL OFFICER AT WORLD TABLEWARE INTERNATIONAL 9403040116 940304 BLOCKBUSTER IS SAID TO SEEK A HIGHER OFFER HUIZENGA PUTS PRESSURE ON VIACOM TO SWEETEN ITS 8 BILLION PROPOSAL BY RANDALL SMITH AND ANITA SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT CORP CHAIRMAN WAYNE HUIZENGA WHO HAS AGREED TO BACK THE PROPOSED 8 BILLION TAKEOVER OF THE VIDEORENTAL CHAIN BY VIACOM INC IS PRESSURING VIACOM TO SWEETEN THE TERMS OF ITS OFFER ACCORDING TO WALL STREET ANALYSTS AND OTHERS FAMILIAR WITH THE SITUATION AS PART OF A MERGER AGREEMENT WITH VIACOM SIGNED IN JANUARY MR HUIZENGA ALREADY HAS AGREED TO VOTE HIS BLOCKBUSTER SHARES FOR THE TAKEOVER AS PART OF A GROUP THAT HOLDS A 23 BLOCKBUSTER STAKE AND HE HASN'T FORMALLY ASKED THAT THE DEAL BE RENEGOTIATED INSTEAD WITH VIACOM'S STOCK PRICE FALLING REDUCING THE VALUE OF THE VIACOM SECURITIES THAT BLOCKBUSTER SHAREHOLDERS WOULD RECEIVE MR HUIZENGA HAS ACTED IN SEVERAL WAYS IN RECENT WEEKS TO PUSH VIACOM CHAIRMAN SUMNER REDSTONE TO SWEETEN HIS OFFER MR HUIZENGA HAS PUBLICLY RAISED THE POSSIBILITY THAT THE BLOCKBUSTER BOARD MIGHT NOT RECOMMEND THAT SHAREHOLDERS VOTE TO APPROVE THE DEAL IN A VOTE SCHEDULED FOR SOMETIME IN MAY MR HUIZENGA ALSO HAS MADE MR REDSTONE AWARE OF OVERTURES FROM REDSTONE RIVAL JOHN MALONE PRESIDENT OF TELECOMMUNICATIONS INC WHO EXPRESSED INTEREST IN HOLDING TALKS ABOUT MAKING AN INVESTMENT IN BLOCKBUSTER BLOCKBUSTER DECLINED TO COMMENT ALTHOUGH PEOPLE CLOSE TO THE COMPANY HAVE CONSISTENTLY DENIED THAT MR HUIZENGA IS ATTEMPTING TO RENEGOTIATE THE DEAL A VIACOM SPOKESWOMAN SAID EXECUTIVES WEREN'T AVAILABLE TO COMMENT PEOPLE CLOSE TO THE SITUATION SAY ANY NEW TALKS ON TERMS OF THE DEAL AREN'T LIKELY TO TAKE PLACE FOR SEVERAL WEEKS UNTIL JUST BEFORE THE BLOCKBUSTER BOARD MUST VOTE ON WHETHER TO RECOMMEND THE MERGER TO SHAREHOLDERS ONE PERSON CLOSE TO BLOCKBUSTER SAID MR HUIZENGA IS NOT HAPPY BUT ISN'T TRYING TO CHANGE THE TERMS AT THIS TIME VIACOM NEEDS THE MERGER WITH BLOCKBUSTER TO HELP FINANCE VIACOM'S NEARLY 10 BILLION ACQUISITION OF PARAMOUNT COMMUNICATIONS INC IF THE TAKEOVER OF BLOCKBUSTER DOESN'T GO THROUGH VIACOM WILL FACE A MUCH HEAVIER DEBT BURDEN THAN IT HAD ANTICIPATED WITHOUT BLOCKBUSTER'S CASH FLOW TO HELP MAKE ITS PAYMENTS BUT MR HUIZENGA AND OTHER BLOCKBUSTER EXECUTIVES HAVE TOLD SOME OF THEIR SHAREHOLDERS THAT THEY ARE UNHAPPY ABOUT THE DEGREE TO WHICH VIACOM STOCK HAS FALLEN CUTTING THE VALUE TO BE RECEIVED FOR BLOCKBUSTER STOCK TO 2316 A SHARE DOWN FROM 31 WHEN THE DEAL WAS ANNOUNCED NANDITA PARKER A MEDIA AND ENTERTAINMENT ANALYST AT GERARD KLAUER MATTISON & CO SAYS THAT MR HUIZENGA IS VERY ACTIVELY ATTEMPTING TO PERSUADE VIACOM TO SWEETEN THE DEAL FOLLOWING THE STEEP DOWNTURN IN VIACOM'S STOCK PRICE HE WANTS TO GET BETTER TERMS SHE SAYS WHILE MR HUIZENGA'S EFFORTS TO GET A SWEETENED OFFER HAVE CHEERED BLOCKBUSTER SHAREHOLDERS THEY HAVE ANGERED SOME TRADERS WHO HOLD PARAMOUNT STOCK AND ARE DUE TO RECEIVE 1750 IN VIACOM DEBT SECURITIES FOR EACH PARAMOUNT SHARE UNDER TERMS OF VIACOM'S ACQUISITION OF PARAMOUNT IF THE BLOCKBUSTER DEAL ISN'T COMPLETED THOSE DEBT SECURITIES WOULD BECOME PREFERRED STOCK VALUED AT ROUGHLY 5 A SHARE LESS THE TRADERS SAY VIACOM ALREADY HAS ACQUIRED ABOUT 51 OF PARAMOUNT'S SHARES FOR 107 IN CASH BUT ANALYSTS NOTE THAT MR HUIZENGA HAS A FIDUCIARY DUTY TO HIS BLOCKBUSTER SHAREHOLDERS TO TRY TO GAIN IMPROVED TERMS AS LONG AS HE ABIDES BY THE LETTER OF HIS AGREEMENT TO VOTE FOR THE DEAL WITH VIACOM ALAN GOULD AN ENTERTAINMENT AND CABLETV ANALYST AT KIDDER PEABODY & CO SAYS THE VIACOM OFFER WOULD HAVE TO HAVE A VALUE OF 25 FOR EACH BLOCKBUSTER SHARE IN ORDER TO HAVE A 50 CHANCE OF GAINING APPROVAL IN THE SHAREHOLDER VOTE THE DEAL'S CHANCE OF APPROVAL WOULD BE FAR GREATER AT A VALUE OF 28 TO 30 A SHARE HE SAYS PAUL MARSH WHO FOLLOWS MEDIA AND ENTERTAINMENT STOCKS AT NATWEST SECURITIES CORP SAYS THAT MR HUIZENGA MUST OBVIOUSLY ASK QUESTIONS ABOUT WHERE BOTH VIACOM AND BLOCKBUSTER STOCKS ARE TRADING PEOPLE CLOSE TO VIACOM INSIST THEY AREN'T CONCERNED ABOUT MR HUIZENGA'S INTENTIONS THEY SAY THAT ONCE VIACOM AND BLOCKBUSTER CAN SEND OUT INFORMATION ABOUT THE DEAL AND START TALKING UP THE COMBINATION OF VIACOM PARAMOUNT AND BLOCKBUSTER TO INVESTORS VIACOM'S STOCK WILL REBOUND SOLVING THE PROBLEM MS PARKER OF GERARD KLAUER MATTISON SAYS THAT SINCE THE VIACOMBLOCKBUSTER MERGER WAS NEGOTIATED IN JANUARY BLOCKBUSTER'S PROSPECTS HAVE IMPROVED BECAUSE OF THE COLLAPSE OF THE PROPOSED ACQUISITION OF TCI BY BELL ATLANTIC CORP ONE IMPLICATION OF THE COLLAPSE OF THAT DEAL IS THAT THE THREAT POSED TO BLOCKBUSTER'S VIDEORENTAL BUSINESS FROM NEW INFORMATIONSUPERHIGHWAY TECHNOLOGIES SUCH AS VIDEO ON DEMAND APPEARS LESS IMMINENT IF BLOCKBUSTER HADN'T NEGOTIATED THE VIACOM MERGER MS PARKER THINKS BLOCKBUSTER STOCK MIGHT BE TRADING IN THE HIGH 30S AS IT IS BLOCKBUSTER'S STOCK NOW IS TRADING AT 25875 A SHARE A 272 PREMIUM OVER THE VALUE OF THE VIACOM BID THAT INDICATES THAT TRADERS ARE MAKING A BET THAT THE VIACOM BID WILL EITHER BE SWEETENED TOPPED BY ANOTHER SUITOR OR CALLED OFF VIACOM CLASS B SHARES WHICH COMPRISE THE BULK OF THE VIACOM OFFER HAVE BOUNCED OFF THEIR LOWS OF UNDER 24 A SHARE IN THE PAST WEEK BUT THEY REMAIN FAR BELOW THE LEVELS THAT ANALYSTS SAY ARE NEEDED TO ASSURE APPROVAL OF THE DEAL VIACOM B SHARES CLOSED AT 27625 DOWN 375 CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9403040115 940304 TECHNOLOGY & HEALTH NOTNEARBY DOCTOR HELPS AGILE ROBOT PERFORM SURGERY WITHOUT A SURGEON IN THE OR CANADIAN ROBOT HANDLES 3 GALL BLADDER OPERATIONS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL A ROBOT CONTROLLED BY SURGEONS FROM A REMOTE LOCATION SUCCESSFULLY PERFORMED GALL BLADDER OPERATIONS ON THREE PATIENTS IN CANADA PRESAGING AN ERA OF LONGDISTANCE SURGERY THE PATIENTS SUFFERED NO COMPLICATIONS DURING OR AFTER THE ROBOTIC SURGERY ACCORDING TO A REPORT IN THIS WEEK'S ISSUE OF THE BRITISH MEDICAL JOURNAL LANCET CANADIAN SURGEONS AT THE HOTELDIEU DE MONTREAL HOSPITAL IN QUEBEC SAID THE ROBOT'S PRECISION SURGERY SHOWED THAT CERTAIN OPERATIONS CAN BE DONE WITHOUT A SURGEON PRESENT AT THE OPERATING TABLE THEY SAID THE TECHNIQUE COULD BE ESPECIALLY USEFUL IN REMOTE HOSPITALS THAT LACK SURGEONS SKILLED IN CERTAIN PROCEDURES THE SKILL OF A SURGEON IN A DISTANT MEDICAL CENTER COULD BE PROVIDED ELECTRONICALLY VIA A ROBOT THE CANADIANS SUGGESTED TO PERFORM THE GALL BLADDER REMOVAL BY AN OPERATION CALLED A LAPAROSCOPY THE MONTREAL SURGEONS ATTACHED A TINY CAMERA AND A LAPAROSCOPE TO A ROBOTIC ARM IN THE OPERATING ROOM THE LAPAROSCOPE IS A FLEXIBLE OPTICAL TUBE INSERTED INTO THE ABDOMEN THROUGH A SMALL INCISION THE LAPAROSCOPE ALLOWS INSTRUMENTS TO BE PASSED THROUGH IT INTO THE ABDOMINAL CAVITY AND AT THE SAME TIME ALLOWS THE SURGEON TO SEE INTO THE CAVITY WHILE THE ROBOTIC ARM STOOD BY THE PATIENT THE CAMERA PROVIDED A VIDEO IMAGE ON A TELEVISION SCREEN IN A SEPARATE ROOM THE ROBOTIC ARM WAS CONTROLLED FROM THE REMOTE LOCATION THROUGH ELECTRONICMECHANICAL DEVICES WHICH INCLUDED A NINTENDOSTYLE JOYSTICK AND A SERIES OF PUSH BUTTONS FOR INOUT AND ROTATIONAL MOVEMENTS WHILE VIEWING THE IMAGE ON THE SCREEN THE SURGEONS USED THE JOYSTICK AND OTHER CONTROLS TO MANIPULATE THE LAPAROSCOPE IN EACH OF THREE PATIENTS WHO RANGED IN AGE FROM 33 TO 53 THE ROBOTIC SURGERY CONDUCTED WITHOUT EVEN A SURGICAL ASSISTANT AT THE OPERATING TABLE TOOK 30 MINUTES IN TWO CASES AND 50 MINUTES IN THE OTHER THE BLOOD LOSS WAS NEGLIGIBLE THE SURGEONS SAID IN THE LANCET REPORT NOTING TOO THAT THE PATIENTS EXPERIENCED NEGLIGIBLE ABDOMINAL PAIN HOSPITAL STAYS WERE LESS THAN 24 HOURS FOR TWO PATIENTS AND UNDER 48 HOURS FOR THE THIRD THE WHOLE SETUP WAS NOT UNLIKE THE NINTENDO GAMEBOARD SAID ALFONS POMP ASSISTANT PROFESSOR OF SURGERY DR POMP SAID THAT AS FAR AS HE KNEW THIS MARKED THE FIRST TIME THAT A ROBOT WAS MANIPULATED FROM A REMOTE LOCATION TO OPERATE ON A HUMAN HE SAID SIMILAR PROCEDURES HAVE BEEN PERFORMED ON ANIMALS IN THE US AND ITALY HE ADDED THAT WHILE ROBOTS HAVE BEEN USED IN ORTHOPEDIC SURGERY ON HUMANS IN THE US THE ROBOTS WERE NOT CONTROLLED REMOTELY DR POMP SAID THAT LAPAROSCOPY A RELATIVELY NEW PROCEDURE HAS OPENED UP A NEW FIELD KNOWN AS MINIMALLY INVASIVE SURGERY WHERE ROBOTS MIGHT BE SUCCESSFULLY USED DR POMP SAID THAT TO ADVANCE THIS TECHNOLOGY RESEARCHERS ARE WORKING ON A VOICECOMMAND SYSTEM TO REPLACE THE JOYSTICK A VOICECOMMAND SYSTEM HE SAID WOULD IMPROVE PRECISION WITH WHICH THE ROBOT MANEUVERS INSTRUMENTS AND WOULD ALSO FREE THE SURGEON'S HANDS 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 9403040114 940304 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH LYNTON R WILSON 53 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF TELECOMMUNICATIONSSERVICES CONCERN BCE INC WAS NAMED TO THIS AUTO MAKER'S BOARD INCREASING ITS SIZE TO 15 9403040113 940304 WHO'S NEWS APPLIED MATERIALS APPLIED MATERIALS SANTA CLARA CALIF MICHAEL ARMACOST A VISITING PROFESSOR AT STANFORD UNIVERSITY AND FORMER AMBASSADOR TO JAPAN WAS NAMED A DIRECTOR OF THIS MAKER OF SEMICONDUCTOR WAFER FABRICATION SYSTEMS 9403040112 940304 ECONOMY RETAILERS REPORT BIG SALES GAINS FOR FEBRUARY SALOMON'S INDEX RISES 64 FROM WEAK '93 MONTH ANALYSTS ARE IMPRESSED BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE HARSH WINTER WEATHER THE NATION'S BIG RETAILERS REPORTED STRONG SALES GAINS FOR FEBRUARY EVEN APPAREL SALES WEAK IN RECENT MONTHS MADE SOME MODEST GAINS SOME RETAILERS REPORTED HOME GOODS CONTINUED TO SELL WELL FEBRUARY SALES FOR STORES OPEN AT LEAST ONE YEAR JUMPED A SURPRISING 64 FROM A YEAR EARLIER ACCORDING TO SALOMON BROTHERS INC'S INDEX OF 22 RETAILERS THAT'S ALMOST DOUBLE THE 35 GAIN IN JANUARY BUT IT'S COMPARED WITH A WEAK YEAREARLIER PERIOD WHEN SALES GAINED A MEAGER 08 STILL SALOMON SAID IT WAS THE BEST MONTHLY GAIN SINCE DECEMBER 1992 PAINEWEBBER INC'S INDEX OF 21 COMPANIES SHOWED SAMESTORE SALES JUMPING 57 FROM A YEAR EARLIER UP FROM THE JANUARY FIGURE OF 32 AND MORE THAN DOUBLE THE GAIN OF 24 A YEAR EARLIER ANALYSTS WERE UPBEAT ABOUT THE RESULTS ALTHOUGH THEY NOTED THAT IT WAS FAIRLY EASY TO BEAT LAST WINTER'S GENERALLY POOR RESULTS STILL ANALYSTS GENERALLY SAW THE FEBRUARY RESULTS AS A SIGNAL OF RISING CONSUMER CONFIDENCE JEFFREY FEINER A RETAIL ANALYST AT SALOMON SAID THE NUMBERS ARE EVEN BETTER THAN THEY LOOK THE WEATHER DID HAMPER THINGS BUT STILL THERE WAS GOOD STORE TRAFFIC DESPITE THAT LOOKING AHEAD MARGO MCGLADE AN ANALYST WITH PAINEWEBBER SAID WE ARE IN FOR A GOOD COUPLE OF MONTHS OF VERY NICE SALES GAINS WE WILL HAVE TO SEE HOW THINGS SHAKE OUT WHEN COMPARISONS GET TOUGHER IN THE SUMMERTIME DEPARTMENT STORES AND MASSMARKET RETAILERS BUOYED BY SALES OF HOME FURNISHINGS APPLIANCES AND OTHER HARD GOODS GENERALLY REPORTED SALES ON PAR WITH OR BETTER THAN ANALYSTS' EXPECTATIONS SPECIALTY APPAREL CHAINS HAD A MIXED SHOWING AS ANALYSTS EXPECTED WITH CONSERVATIVEMINDED CLOTHIERS FARING BETTER THAN THE REST SOME LARGE DEPARTMENTSTORE CHAINS DID VERY WELL JC PENNEY CO SAID SAMESTORE SALES IN THE MONTH GAINED 10 PENNEY REGISTERED GOOD SALES GAINS IN EVERY REGION WITH EXCEPTIONAL CATEGORIES INCLUDING APPAREL JEWELRY AND BEDDING AND BATH ACCESSORIES SEARS ROEBUCK & CO POSTED A HEFTY DOMESTIC SAMESTORE RISE OF 135 SEARS'S HARDGOODS SUCH AS APPLIANCES HOME ELECTRONICS AND FURNITURE HAD DOUBLEDIGIT INCREASES BUT STRONG GAINS ALSO CAME FROM JEWELRY JUNIORS AND MEN'S AND WOMEN'S SPORTSWEAR COSMETICS AND FRAGRANCES RECENTLY INTRODUCED IN 22 STORES ALSO SHOWED BIG INCREASES MAY DEPARTMENT STORES CO THE NATION'S LARGEST DEPARTMENTSTORE OPERATOR SAID SAMESTORE SALES ROSE 78 FEDERATED DEPARTMENT STORES INC WHICH INCLUDE BLOOMINGDALE'S AND BURDINES STORES POSTED A SAMESTORE INCREASE OF 18 SOME SPECIALTY APPAREL SELLERS REBOUNDED FROM WEAK OR LACKLUSTER RESULTS IN RECENT MONTHS TALBOTS INC WHOSE WOMEN'S APPAREL HAS FARED WELL DURING THE RECENT SLUMP CONTINUED TO SHOW STRONG SAMESTORE FIGURES WITH A GAIN OF ABOUT 19 GAP INC'S SAMESTORE SALES ROSE 3 BUT NOT EVERYONE HAD A GOOD MONTH CHARMING SHOPPES INC'S SAMESTORE SALES DROPPED 3 AND THE COMPANY BLAMED WINTER STORMS LIMITED INC REPORTED FLAT SAMESTORE RESULTS FOR THE MONTH AMONG DISCOUNTSTORE OPERATORS WALMART STORES INC THE NATION'S LARGEST RETAILER SAID FEBRUARY SAMESTORE SALES ROSE 9 BUT ITS SAM'S CLUB WAREHOUSE STORES SAW A 2 SAMESTORE DECLINE KMART CORP'S GENERAL MERCHANDISE STORES POSTED A DECREASE IN SAMESTORE SALES OF 06 BUT ITS SPECIALTY OFFICEMAX CHAIN'S SAMESTORE RESULTS WERE UP 19 DAYTON HUDSON CORP WHICH OPERATES TARGET DISCOUNT STORES MERVYN'S MODERATEPRICE STORES AND UPSCALE DEPARTMENT STORES REPORTED A SAMESTORE INCREASE OF 25 9403040111 940304 TYSON FOODS PLANS 30ASHARE OFFER TO BUY WLR FOODS SPRINGDALE ARK POULTRY GIANT TYSON FOODS INC PRESSED FORWARD WITH ITS HOSTILE PURSUIT OF WLR FOODS INC SAYING IT WILL LAUNCH A 30ASHARE TENDER OFFER NEXT WEEK FOR THE CHICKEN AND TURKEY PROCESSOR THE OFFER TO BEGIN WEDNESDAY VALUES WLR AT ABOUT 330 MILLION BASED ON ITS 11 MILLION SHARES OUTSTANDING WLR'S STOCK JUMPED 10 ON THE NEWS CLOSING AT 30375 UP 275 ON THE NASDAQ STOCK MARKET THE STOCK HAD CLOSED AT 19 A SHARE ON JAN 24 BEFORE TYSON THE LARGEST US POULTRY CONCERN FIRST MADE AN UNSOLICITED PROPOSAL TO ACQUIRE WLR AT THE SAME 30ASHARE PRICE WLR'S BOARD REBUFFED THAT OVERTURE FEB 6 DESPITE THE MARKET'S REACTION YESTERDAY TYSON SPOKESMAN ARCHIE SCHAFFER III SAID TYSON DOESN'T INTEND TO RAISE ITS BID GAIL PRICE WLR FOODS SPOKESWOMAN SAID THAT IF TYSON CARRIES OUT ITS TENDER OFFER OUR BOARD WILL EXERCISE ITS FIDUCIARY DUTY AND ADVISE SHAREHOLDERS IN WHAT IT BELIEVES IS THEIR BEST INTERESTS TYSON HAS FILED CLAIMS IN FEDERAL COURT TO NEUTRALIZE DEFENSIVE MEASURES THAT WLR'S BOARD ADOPTED IN RECENT WEEKS SUCH AS A POISON PILL THAT WOULD CANCEL VOTING RIGHTS AND SUBSTANTIALLY DILUTE THE HOLDINGS OF ANY ENTITY ACQUIRING 15 OR MORE OF ITS COMMON STOCK TYSON IS ALSO CHALLENGING SPECIAL COMPENSATION PACKAGES THAT WLR RECENTLY GAVE TO MORE THAN 600 EMPLOYEES TYSON WHICH YESTERDAY DISCLOSED THAT IT HOLDS 5 OF WLR'S COMMON STOCK SAID IT WILL ASK UNDER A VIRGINIA LAW FOR A WLR SHAREHOLDER VOTE ON A PROPOSAL TO GIVE TYSON FULL VOTING RIGHTS FOR ANY SHARES ACQUIRED IN THE TENDER OFFER 9403040110 940304 WHO'S NEWS CROWN CORK & SEAL CO CROWN CORK & SEAL CO PHILADELPHIA THIS PRODUCER OF METAL AND PLASTIC CONTAINERS NAMED MARK W HARTMAN 57 YEARS OLD EXECUTIVE VICE PRESIDENT CORPORATE TECHNOLOGIES A NEW POSITION MR HARTMAN WILL BE SUCCEEDED AS EXECUTIVE VICE PRESIDENT AND PRESIDENT INTERNATIONAL DIVISION BY JOHN W CONWAY 48 ALSO WILLIAM J BRAYER 54 AND WARREN A MILLER 47 WERE NAMED TO NEW POSITIONS MR BRAYER VICE PRESIDENT OF THE SUBSIDIARIES DIVISION AND MR MILLER VICE PRESIDENT FINANCE ADMINISTRATION AND BUSINESS DEVELOPMENT OF THE PLASTICS DIVISION 9403040109 940304 MARKETING & MEDIA NBC TO SHOW '96 OLYMPICS WITHOUT A CABLE PARTNER NEW YORK NBC WILL GO IT ALONE IN TELECASTING THE 1996 SUMMER OLYMPICS IN ATLANTA THE GENERAL ELECTRIC CO UNIT SHUNNED THE NETWORKS' RECENT PRACTICE OF TAKING ON A CABLE PARTNER FOR THE GAMES CITING THE VALUE OF EXCLUSIVITY OUR SIX OWNED STATIONS AND 207 AFFILIATES ARE OUR MOST IMPORTANT PARTNERS SAID NBC SPORTS PRESIDENT DICK EBERSOL IN A STATEMENT THIS IS A GAMBLE FOR NBC WHICH SPENT 456 MILLION FOR THE ATLANTA GAMES' TV RIGHTS AND WHICH LOST AN ESTIMATED 100 MILLION ON THE 1992 BARCELONA GAMES AFTER PAYING 401 MILLION FOR RIGHTS THAT YEAR THE NETWORK SUPPLEMENTED ITS OVERTHEAIR BROADCASTS WITH A PAYPERVIEW CABLE PACKAGE WHICH FLOPPED BUT THE VALUE OF OLYMPICS PROGRAMMING HAS BEEN ENHANCED BY CBS INC'S SMASHING SUCCESS WITH THE LILLEHAMMER GAMES LAST MONTH ON AVERAGE 278 OF THE NATION'S 942 MILLION TELEVISION HOUSEHOLDS WATCHED THE GAMES OVER THEIR 16 DAYS AN NBC SPOKESMAN MAINTAINED THAT HAD NO BEARING ON THE DECISION HOWEVER HE SAID NBC'S STATIONS MADE SIGNIFICANT CONTRIBUTIONS IN ENABLING THE NETWORK TO MOUNT ITS WINNING BID AND IT WANTED TO PROTECT THEIR EXCLUSIVE BROADCAST RIGHTS 9403040108 940304 FIRST INTERSTATE REJECTED MERGER WITH WELLS FARGO BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL FIRST INTERSTATE BANCORP REJECTED A TENTATIVE MERGER PROPOSAL BY WELLS FARGO & CO LAST WEEK REFLECTING THE LOS ANGELESBASED BANK'S WISH TO REMAIN INDEPENDENT DETAILS OF THE PROPOSAL FIRST REPORTED IN AMERICAN BANKER WEREN'T AVAILABLE BUT ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION FIRST INTERSTATE REBUFFED THE OVERTURES MAINLY BECAUSE PROFITS HAVE REBOUNDED IN RECENT YEARS AND THE BANK IS EXPANDING ON ITS OWN THROUGH ACQUISITIONS THERE WAS ALSO CONCERN THAT THE EXECUTIVES WHO HELPED ENGINEER THE BANK'S TURNAROUND WOULD LOSE THEIR TOP POSITIONS IN ANY MERGER WITH WELLS STILL ANALYSTS SAID A MERGER OF CALIFORNIA'S SECOND AND THIRDLARGEST BANKS WOULD HAVE BEEN A GOOD MOVE IT'S THE DEAL THAT MAKES MORE SENSE THAN ANY OTHER DEAL IN TOWN BUT IN ALL PROBABILITY IT ISN'T GOING TO HAPPEN SAID ONE ADVISER FAMILIAR WITH THE SPURNED BID A FIRST INTERSTATE/WELLS FARGO MERGER WOULD BE A BELLRINGER SAYS JAMES MCDERMOTT PRESIDENT OF KEEFE BRUYETTE & WOODS INC IT WOULD BE A WHOLE NEW COMPETITIVE ENTITY IN THE MARKET WITH A LOT OF CLOUT COMBINING THE TWO BANKS WOULD HAVE CREATED A COMPANY WITH 104 BILLION IN ASSETS COMPARED WITH THE WEST COAST'S GOLIATH BANKAMERICA CORP SAN FRANCISCO WITH ASSETS OF 187 BILLION BUT MORE THAN SIZE WELLS FARGO WHOSE OVERHEAD IS LOWER THAN ANY BIG BANK IS LURED BY THE OPPORTUNITY TO PARE AS MUCH AS 30 FROM FIRST INTERSTATE'S 2 BILLION IN NONINTEREST EXPENSE ANALYSTS SAID THAT TO RESTART THE TALKS SAN FRANCISCOBASED WELLS WOULD HAVE TO OFFER FAR MORE THAN IT CONSIDERS PRUDENT FOR FIRST INTERSTATE A HOSTILE BID IS ALSO UNLIKELY BECAUSE FEDERAL REGULATORS TAKE A DIM VIEW OF PROTRACTED TAKEOVER FIGHTS THAT WOULD TEND TO FINANCIALLY WEAKEN A BANK NEVERTHELESS SOME ANALYSTS THINK FIRST INTERSTATE WOULD SERIOUSLY CONSIDER AN OFFER OF AT LEAST 90 A SHARE OR ALMOST 7 BILLION WHICH IS MORE THAN TWICE THE COMPANY'S YEAREND 1993 BOOK VALUE I HOPE WELLS DOESN'T PAY THAT SAID THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN & JENRETTE HE NOTED THAT WELLS FARGO ISN'T AS INTERESTED IN ADDING LOTS OF COSTLY BRANCHES AT A TIME WHEN MANY CONSUMERBANKING SERVICES ARE DELIVERED ELECTRONICALLY FIRST INTERSTATE'S STOCK HAS GYRATED DURING THE PAST WEEK ON RUMORS THAT IT WAS EITHER SELLING ITSELF OR BUYING ANOTHER BANK YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ITS STOCK CLOSED AT 6675 UP 1875 ON VOLUME OF 965400 SHARES WELLS FARGO'S STOCK ALSO LISTED ON THE BIG BOARD CLOSED AT 137625 UNCHANGED ON VOLUME OF 322600 SHARES OFFICIALS AT WELLS FARGO AND FIRST INTERSTATE DECLINED TO COMMENT ON THE REPORTED MERGER BID IN CONFIRMING THE FAILED BID PEOPLE FAMILIAR WITH THE SITUATION DENIED A REPORT THAT FIRST INTERSTATE IS STILL CONSIDERING THE SALE OF ITS CALIFORNIA BANK UNIT TO WELLS FIRST INTERSTATE OFFICIALS HAVE SAID THEY ARE INTENT ON EXPANDING CALIFORNIA OPERATIONS AS INDICATED BY A STRING OF RECENT ACQUISITIONS THE LATEST PURCHASE OF SAN DIEGO FINANCIAL CORP WAS ANNOUNCED IN AUGUST SIXTYTWOYEAROLD CARL REICHARDT WELLS FARGO'S CHAIRMAN HASN'T MADE ANY SECRET OF HIS DESIRE TO BUY A BIG CALIFORNIA RIVAL AND USE THOSE COST SAVINGS TO BOOST PROFITS IN A HIGHLY COMPETITIVE PERIOD FOR RETAIL BANKING FIRST INTERSTATE MAY BE MR REICHARDT'S LAST CHANCE HAVING LOST OUT TO BANKAMERICA IN A BID FOR SECURITY PACIFIC CORP THAT MR REICHARDT INITIATED IN LATE 1990 9403040107 940304 WHO'S NEWS BEAR STEARNS ECONOMIST KUDLOW AGREES TO RESIGN NEW YORK YOU MAY HAVE SEEN HIM ON CADILLAC COMMERCIALS YOU MAY HAVE CAUGHT HIS TALK SHOW ON CABLE BUT YOU WON'T SEE LAWRENCE A KUDLOW SPEAKING FOR INVESTMENT BANKING FIRM BEAR STEARNS COS ANYMORE MR KUDLOW AND BEAR STEARNS SAID THEY HAVE AGREED THAT IT IS IN MR KUDLOW'S BEST INTEREST TO RESIGN FROM THE FIRM WHERE HE HAS BEEN CHIEF ECONOMIST FOR EIGHT YEARS NO SUCCESSOR WAS NAMED THE ANNOUNCEMENT SAID MR KUDLOW SEEKS TO DEVOTE MORE TIME TO HIS FAMILY AND PERSONAL AVOCATIONS AND ULTIMATELY TO PURSUE HIS LONGSTANDING INTEREST IN POLITICS JOURNALISM AND ECONOMICS BUT PEOPLE FAMILIAR WITH THE SITUATION SAY BEAR STEARNS FELT MR KUDLOW TENDED TO PUT HIS OWN INTERESTS AHEAD OF THOSE OF THE FIRM BEAR STEARNS DECLINED TO ELABORATE ON ITS STATEMENT IN AN INTERVIEW MR KUDLOW SAID HE HAS BEEN NAMED ECONOMICS EDITOR OF THE NATIONAL REVIEW WILLIAM F BUCKLEY JR'S CONSERVATIVE JOURNAL FOLLOWING HIS AMICABLE DEPARTURE FROM HIS FIRM MR KUDLOW 46 YEARS OLD SERVED IN THE REAGAN WHITE HOUSE'S OFFICE OF MANAGEMENT AND BUDGET 9403040106 940304 US PRESSURES LIBYAN TO RESIGN BANK POST TOUGHENING SANCTIONS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON TRYING TO TOUGHEN ECONOMIC SANCTIONS AGAINST LIBYA THE US TREASURY HELPED FORCE THE RESIGNATION OF LIBYAN NATIVE ABDULLA SAUDI AS CHIEF EXECUTIVE OF ARAB BANKING CORP ONE OF THE LARGEST BANKS IN THE ARAB WORLD OFFICIALS OF THE TREASURY'S OFFICE OF FOREIGN ASSET CONTROL SAID THEY ALSO ANTICIPATE THAT THE LIBYAN CENTRAL BANK'S 25 STAKE IN THE BAHRAINBASED BANK WILL BE REDUCED AND LIBYA'S INFLUENCE OVER IT WILL BE LIMITED R RICHARD NEWCOMB DIRECTOR OF THE TREASURY OFFICE SAID THE TREASURY ISN'T NECESSARILY SEEKING TO TOPPLE THE INSTITUTION BUT RATHER TO RESTRUCTURE IT AND SEE THAT THE LIBYAN CONTROL IS NEUTRALIZED HE ADDED THAT THE US IS PURSUING SIMILAR AGREEMENTS WITH OTHER LIBYANINFLUENCED INSTITUTIONS MR SAUDI WHO FOUNDED THE BANK IN 1980 SAID THIS WEEK THAT HE WOULD RESIGN MAY 1 EXPLAINING ONLY THAT HIS MOVE WAS OWING TO EXTERNAL CIRCUMSTANCES AND WAS NECESSARY TO SAFEGUARD THE FUTURE OF THE BANK ALTHOUGH LOCATED IN BAHRAIN THE BANK ISN'T PERMITTED TO DO BUSINESS THERE THE GOVERNMENTS OF ABU DHABI AND KUWAIT ALSO OWN 25 STAKES THE REMAINING 25 IS PUBLICLY HELD THE BANK REPORTED ASSETS TOTALING 184 BILLION AT THE END OF LAST YEAR BAHRAIN FINANCE MINISTER IBRAHIM ABDUL KARIM AND BAHRAIN MONETARY AGENCY GOVERNOR ADBULLA SAIF VISITED WASHINGTON IN EARLY FEBRUARY TO NEGOTIATE AN ARRANGEMENT WITH THE US THEIR VISIT LED THE TREASURY TO LIFT A FREEZE ON THE ASSETS OF ARAB FINANCIAL SERVICES AN AFFILIATE OF THE BANK THE US WAS THREATENING TO FREEZE THE ASSETS OF ARAB BANKING CORP UNLESS LIBYA'S INFLUENCE WAS CURTAILED SIGNIFICANTLY THE TOUGHER US STANCE FOLLOWS TIGHTER UNITED NATIONS SANCTIONS THAT CAME INTO FORCE DEC 1 THEY INCLUDE A WORLDWIDE FREEZE ON SELECTED FUNDS AND FINANCIAL RESOURCES OF LIBYAN GOVERNMENT AGENCIES COMPANIES AND INDIVIDUALS 9403040105 940304 FLORIDA TO OFFER 20 MILLION FINE AGAINST MET LIFE OTHER STATES QUESTION SIZE OF PROPOSED PENALTY TO SETTLE INVESTIGATION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE FLORIDA INSURANCE DEPARTMENT IS EXPECTED TO PROPOSE A 20 MILLION FINE AGAINST METROPOLITAN LIFE INSURANCE CO TO SETTLE A MULTISTATE INVESTIGATION INTO THE COMPANY'S SALES PRACTICES BUT OTHER STATES HAVE RAISED QUESTIONS ABOUT WHETHER THE PENALTY IS TOO BIG AND MET IS THREATENING TO REJECT ANY PROPOSAL THAT CONTAINS A LARGE FINE IF MET CHOOSES TO FIGHT THE PROPOSED PENALTY IT COULD HOLD UP REPAYMENT TO 36000 POLICYHOLDERS WHO WERE ALLEGEDLY MISLED INTO BUYING LIFE INSURANCE INSURANCE DEPARTMENT FINES RARELY RUN MORE THAN A FEW HUNDRED THOUSAND DOLLARS BUT FLORIDA WHICH HAS LED THE INVESTIGATION INTO MET BELIEVES A FINE OF 20 MILLION OR MORE TO BE SPLIT AMONG 40 STATES IS JUSTIFIED BECAUSE OF THE WIDESPREAD NATURE OF THE ALLEGED ABUSES FLORIDA IS EXPECTED TO UNVEIL ITS PROPOSAL NEXT WEEK IN DENVER WHEN INSURANCE REGULATORS WILL DISCUSS MET AT THE QUARTERLY MEETING OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS TOM GALLAGHER FLORIDA INSURANCE COMMISSIONER IS HOPEFUL THAT OTHER STATES WILL QUICKLY SIGN OFF ON HIS PLAN BUT THE OTHER INSURANCE COMMISSIONERS GIVEN THE COMPLEXITY OF THE ISSUES ARE UNLIKELY TO RUSH INTO AN AGREEMENT ONE PROBLEM FOR THEM IS THE LACK OF PRECEDENT FOR THE SETTLEMENT BEING CONTEMPLATED FOR MET STATES HAVE TRADITIONALLY HANDLED INSURANCE COMPANY INVESTIGATIONS INDIVIDUALLY BUT THE INCREASINGLY NATIONAL NATURE OF INSURANCE MARKETING HAS CHANGED THE GROUND RULES LAST YEAR FLORIDA ACCUSED MET AGENTS INCLUDING THOSE IN THE COMPANY'S LARGEST SALES OFFICE LOCATED IN TAMPA OF MISLEADING POLICYHOLDERS INTO BUYING LIFE INSURANCE UNDER THE PRETENSE THAT THEY WERE INVESTING IN RETIREMENT ACCOUNTS A NUMBER OF OTHER STATES HAVE FOUND EVIDENCE OF SIMILAR ABUSES IN THEIR OWN INVESTIGATIONS MET HAS ALREADY PAID 12 MILLION TO FLORIDA POLICYHOLDERS BUT IT IS THREATENING TO HALT THE VOLUNTARY PAYMENTS AND FIGHT EACH POLICYHOLDER INDIVIDUALLY IF THE MULTISTATE SETTLEMENT CAN'T BE WORKED OUT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS THE SUBJECT OF SANCTIONS IS UNDER ACTIVE DISCUSSION SAID A SPOKESMAN FOR MR GALLAGHER WHO DECLINED TO DISCUSS DETAILS SEPARATELY PENNSYLVANIA AND MET HAVE WORKED OUT DETAILS OF THEIR SETTLEMENT OF A DIFFERENT INVESTIGATION SAY PEOPLE FAMILIAR WITH THE SITUATION THE INVESTIGATION CENTERED ON WIDESPREAD ALLEGATIONS THAT MET AGENTS TRICKED POLICYHOLDERS INTO CASHING IN THEIR OLD LIFE INSURANCE POLICIES TO BUY NEW ONES THE ACTIVITY KNOWN AS CHURNING OR REPLACEMENT HURTS POLICYHOLDERS BECAUSE AGENT COMMISSIONS AND OTHER EXPENSES MAKE IT UNECONOMICAL FOR A POLICYHOLDER TO CASH IN ONE POLICY FOR ANOTHER AGENTS HOWEVER CAN BENEFIT BECAUSE THEY EARN A COMMISSION FOR MAKING A NEW SALE IN ADDITION TO PAYING A 15 MILLION FINE MET HAS AGREED TO INTERVIEW MORE THAN 20000 POLICYHOLDERS IN THE STATE WHO MIGHT HAVE BEEN VICTIMIZED THOSE WHO SIGN A SWORN STATEMENT SAYING THAT THEY WERE MISLED WOULD GET THEIR OLD POLICIES BACK AND RECEIVE A CREDIT FOR THE COSTS OF BUYING THE NEW POLICY PENNSYLVANIA PLANS TO SOON RELEASE A REPORT BLASTING MET MANAGEMENT FOR ITS FAILURE TO STOP THE ACTIVITY BUT MET ARGUED THAT THE SENIOR EXECUTIVES WERE UNAWARE OF THE ACTIVITY 9403040104 940304 NORTHWEST SLASHES FARES UP TO 45 ON SOME FLIGHTS THE FARES ARE FOR DOMESTIC FLIGHTS AS WELL AS TRIPS TO CANADA AND TO THREE CITIES IN MEXICO PUERTO RICO AND JAMAICA TICKETS GO ON SALE TODAY AND CAN BE PURCHASED THROUGH MARCH 11 INSTEAD OF THE TYPICAL 14DAY ADVANCEPURCHASE PERIOD THE NORTHWEST SALE REQUIRES A 30DAY ADVANCE TICKETS ARE GOOD FOR TRAVEL BETWEEN APRIL 4 AND JUNE 15 THE TICKETS AREN'T REFUNDABLE AND REQUIRE A SATURDAYNIGHT STAY OTHER MAJOR AIRLINES ARE EXPECTED TO FOLLOW SUIT UNDER THE SALE ROUNDTRIP FARE BETWEEN NEW YORK AND LOS ANGELES FALLS TO 358 FROM 643 A MEMPHISTOSEATTLE FLIGHT DROPS TO 318 FROM 590 THIS WEEK CARRIERS LED BY AMERICA WEST AIRLINES SLASHED COASTTOCOAST AND OTHER LONGHAUL FARES BY AS MUCH AS 52 ON ADVANCEPURCHASE TICKETS UNDER AMERICA WEST'S SALE TRAVEL IS GOOD THROUGH JUNE 15 AND THE NONREFUNDABLE TICKETS WHICH MUST BE BOUGHT BY MARCH 10 REQUIRE A SATURDAYNIGHT STAY 9403040103 940304 EU CLEARS TAKEOVER OF HUELS TROISDORF BY RUETGERSWERKE AG SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN UNION COMMISSION SAID IT CLEARED THE TAKEOVER OF GERMAN PLASTICS COMPANY HUELS TROISDORF AG BY CHEMICAL AND PLASTICS GROUP RUETGERSWERKE AG A UNIT OF RUHRKOHLE AG IN A STATEMENT THE COMMISSION SAID ALTHOUGH THE TAKEOVER WILL GIVE RUETGERS A BIGGER SHARE OF THE EUROPEAN COPPERCLAD LAMINATES MARKET THE COMPANY WON'T BE ABLE TO IMPOSE SIGNIFICANT PRICE INCREASES BECAUSE OF COMPETITIVE PRESSURE FROM CLIENTS IN THE ELECTRONICS INDUSTRY COPPERCLAD LAMINATES ARE USED IN PRODUCING PRINTED CIRCUIT BOARDS RUETGERS ALREADY HAD THE BIGGEST EUROPEAN MARKET SHARE OF COPPERCLAD GLASS LAMINATES WHILE HUELS TROISDORF WAS THE BIGGEST PRODUCER OF COPPERCLAD PAPER LAMINATES SO THE ACQUISITION STRENGTHENS RUETGERS COMPETITIVE POSITION HOWEVER THE COMMISSION FOUND THAT THERE ARE ALTERNATIVE SOURCES OF SUPPLY OF LAMINATES OUTSIDE AND INSIDE THE EU THE COMMISSION HAS THE POWER TO BLOCK OR ALTER AGREEMENTS THAT CREATE OR STRENGTHEN DOMINANT POSITIONS ON THE EUMARKET 9403040102 940304 TECHNOLOGY & HEALTH DELL'S EARNINGS FOR 4TH QUARTER EXCEED FORECAST BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP REPORTED BETTERTHANEXPECTED FISCAL FOURTHQUARTER EARNINGS BUT SLUGGISH SALES FUELED CONCERNS THAT THE PERSONALCOMPUTER BOOM MAY BE QUIETING DELL AN AUSTIN TEXAS COMPUTER MANUFACTURER AND MAILORDER VENDOR SAID NET INCOME FOR THE QUARTER ENDED JAN 30 WAS 177 MILLION OR 39 CENTS A SHARE DOWN 43 FROM 313 MILLION OR 77 CENTS A SHARE A YEAR EARLIER THE EARNINGS HOWEVER WERE STILL ABOUT A NICKEL A SHARE MORE THAN WALL STREET EXPECTED SENDING THE PRICE OF DELL'S STOCK UP 85 OR 2125 TO 27 IN NASDAQ STOCK MARKET TRADING WHILE ANALYSTS PRAISED DELL FOR KEEPING ITS COSTS DOWN AND BOOSTING ITS PROFIT MARGINS THEY FRETTED THAT THE COMPANY'S FOURTHQUARTER SALES OF 7429 MILLION UP 20 FROM 6203 MILLION A YEAR EARLIER WERE ABOUT 50 MILLION BELOW ESTIMATES AND SLIGHTLY LOWER THAN THE COMPANY'S THIRDQUARTER SHOWING THE QUARTERTOQUARTER DECLINE CAME AT A TIME WHEN THE REST OF THE PC INDUSTRY WAS REPORTING RECORD CHRISTMAS SALES THANKS TO A SURGE OF HOMECOMPUTER BUYERS AND GLITZY NEW TECHNOLOGIES SUCH AS MULTIMEDIA MACHINES AND CDROM SOFTWARE MANY ANALYSTS READ THE DELL NUMBERS ALONG WITH A WARNING EARLIER THIS WEEK FROM COMPETITOR AST RESEARCH INC THAT ITS FISCAL THIRDQUARTER SALES COULD BE WEAK AS A SIGN THAT THE REDHOT PC INDUSTRY MAY FINALLY BE SETTLING DOWN WALTER J WINNITZKI A COMPUTER ANALYST AT DILLON READ & CO IN NEW YORK SAID HE EXPECTS WORLDWIDE PC SHIPMENTS TO INCREASE 10 TO 12 THIS YEAR DOWN FROM 20 IN 1993 IT'S CLEAR THAT THE MARKET GROWTH IS MODERATING HE SAID IT'S GOING TO GET A LITTLE TOUGHER ALTHOUGH DELL OFFICIALS BACKED THE 10 PROJECTION FOR GROWTH INDUSTRYWIDE THEY SAID THEY EXPECT THEIR OWN SALES TO PICK UP LATER THIS YEAR DELL BLAMED ITS SALES SLOWDOWN PRIMARILY ON A 58 DROP IN GOVERNMENT BUSINESS FROM THE THIRD QUARTER MICHAEL DELL THE COMPANY'S CHAIRMAN DOWNPLAYED PROSPECTS OF A BROADER PCSALES SLOWDOWN I DON'T THINK THE END OF THE WORLD IS UPON US HE SAID IN A TELEPHONE BRIEFING TO REPORTERS WE SEE THE DEMAND TRENDS BEING REASONABLY HEALTHY MR DELL SAID HE EXPECTS HIS OWN COMPANY'S SALES TO JUMP LATER THIS YEAR THANKS TO A SPATE OF NEW PRODUCTS INCLUDING A REVAMPED LINE OF COMPUTER SERVERS AND DELL'S FIRST BATCH OF NOTEBOOK PCS SINCE EXITING THAT BUSINESS LAST SPRING COSTS ASSOCIATED WITH PHASING OUT OUTMODED NOTEBOOKS ALONG WITH REPAIRS TO DELL'S INTERNAL MANAGEMENTINFORMATION SYSTEMS RESULTED IN A FISCALYEAR LOSS FOR THE COMPANY ITS FIRST EVER DELL REPORTED A NET LOSS OF 358 MILLION OR 106 A SHARE COMPARED WITH NET INCOME OF 1016 MILLION OR 259 A SHARE A YEAR EARLIER SALES FOR THE YEAR JUMPED 43 TO 287 BILLION FROM 201 BILLION 9403040101 940304 A MARKET SPOOKED BY KEYNES BY GEORGE SELGIN JOHN MAYNARD KEYNES HAS BEEN DEAD FOR ALMOST HALF A CENTURY BUT THE MARKETS ARE STILL WORRIED ABOUT HIM THAT AT LEAST WAS THE IMPRESSION THIS WEEK WHEN WEDNESDAY'S BOND MARKET PLUMMETED FOLLOWING REPORTS OF JANUARY DATA SHOWING STRONG PERSONAL SPENDING AND WAGE AND SALARY GAINS THE MARKET LATER TURNED AROUND BUT ITS FLIPFLOP SHOWS IT IS STILL SPOOKED BY THE THEORIES OF KEYNES AND BY THE PHILLIPS CURVE IN 1936 KEYNES ARGUED THAT NEW GOVERNMENT SPENDING WAS NEEDED TO RESTORE EMPLOYMENT AND END THE GREAT DEPRESSION AFTER THE WAR SELFSTYLED KEYNESIANS HELD THAT MORE SPENDING WOULD STIMULATE EMPLOYMENT AND OUTPUT ALBEIT AT THE COST OF SOME INFLATION SUCH THINKING SEEMED TO BE BORNE OUT IN THE PHILLIPS CURVE A FAMOUS PLOT SHOWING A TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT POLICY MAKERS IN THE 1960S THOUGHT THE CURVE MEANT THAT INCREASED GOVERNMENT SPENDING MIGHT INCREASE EMPLOYMENT BUT ALSO BRING HIGHER PRICES WHICH WERE BAD BUT WORTH IT BUT BY THE 1970S' END STAGFLATION INFLATION WITH UNEMPLOYMENT AND SUCCEEDING EVENTS MADE IT CLEAR THAT THE PHILLIPS CURVE HAD VANISHED STILL MORE RECENTLY THOUGH POLICY MAKERS HAVE EMBRACED ANOTHER POSTKEYNESIAN IDEA INSTEAD OF BELIEVING THAT HIGHER INFLATION MEANS HIGHER OUTPUT THEY ARE NOW CONVINCED THAT HIGHER OUTPUT MEANS HIGHER INFLATION WHEREAS BEFORE PEOPLE THOUGHT THAT EVERY UPTICK OF THE CONSUMER PRICE INDEX HERALDED AN IMPROVEMENT IN GROSS NATIONAL PRODUCT OR GROSS DOMESTIC PRODUCT NOW EVERYONE SEEMS TO THINK THAT EVERY UPTICK OF GDP IS PROOF THAT THE ECONOMY IS OVERHEATED HENCE BONDS' EARLY MOVEMENT WEDNESDAY OF COURSE THE TRUTH IS THAT AN INCREASE IN GDP MAY INVOLVE AN INCREASE IN PRICES WITH NO CHANGE IN REAL OUTPUT OR AN INCREASE IN OUTPUT WITH NO CHANGE IN PRICES OR SOME COMBINATION OF PRICE AND OUTPUT INCREASES IF GDP INCREASES WHILE CONSUMER AND PRODUCER PRICES APPEAR MOREORLESS STABLE AS HAS BEEN THE CASE LATELY THE PRESUMPTION OUGHT TO BE THAT GDP GROWTH IS REAL GROWTH AND NOT MERELY IMMINENT INFLATION HISTORY OFFERS ABUNDANT EXAMPLES OF REAL ECONOMIC GROWTH UNACCOMPANIED BY INFLATION INDEED SOME OF THE HIGHEST REAL GROWTH RATES EVER RECORDED WERE EXPERIENCED DURING THE LATE 19TH CENTURY AN ERA OF PERSISTENT DEFLATION MARKET PARTICIPANTS ARE OF COURSE RIGHT TO BE FRIGHTENED BY ANY PROSPECT OF 1970SSTYLE INFLATION IT IS TIME THOUGH TO STOP PAYING PENANCE FOR KEYNESIAN SINS OF THE PAST AND ALLOW OURSELVES TO RELISH A LITTLE REAL GROWTH NOW AND THEN MR SELGIN TEACHES ECONOMICS AT THE UNIVERSITY OF GEORGIA'S BUSINESS SCHOOL 9403040100 940304 SMALL STOCK FOCUS STOCK PRICES MANAGE TO POST MILD GAINS REVERSING TWO DAYS OF SHARP LOSSES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL CAUTIOUS SMALLSTOCK INVESTORS SHOVED PRICES BELOW THEIR SESSION HIGHS BUT THE GROUP POSTED MILD GAINS IN A REVERSAL OF WEDNESDAY'S BRUTAL SELLING THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE 035 OR 013 TO 26315 BELOW ITS SESSION HIGH OF 26371 SOME STRONG TECHNOLOGY ISSUES AND A TECHNICAL BOUNCE AFTER TWO STRAIGHT DAYS OF SHARP LOSSES HELPED THE NASDAQ COMPOSITE INDEX ADD 111 OR 014 TO END AT 78458 EARLY IN THE SESSION BOND PRICES WERE JUST MODESTLY LOWER BY SESSION'S END THE LONG BOND HAD FALLEN 3/4 POINT PUSHING ITS YIELD UP TO 683 ITS HIGHEST LEVEL SINCE JUNE AHEAD OF THE RELEASE OF FEBRUARY EMPLOYMENT DATA TODAY ADDING TO THE BONDMARKET PRESSURE WAS NEWS THAT THE CLINTON ADMINISTRATION REINSTATED SUPER 301 RULES TO PROBE JAPAN'S TRADE PRACTICES WITHIN A SIXMONTH PERIOD FOLLOWING THE MARCH 31 RELEASE OF A GLOBALTRADE PRACTICES REPORT WEDNESDAY'S WILD SWINGS ON THE BIG BOARD AND VOLATILE BONDMARKET ACTION LED SMALLER STOCKS DOWN A TORTUOUS PATH WHILE THE DOW JONES INDUSTRIAL AVERAGE ULTIMATELY POSTED A 22POINT GAIN AFTER PLUNGING MORE THAN 50 POINTS EARLY WEDNESDAY THE POOR PERFORMANCE BY SMALLER STOCKS LEFT THEM OPEN TO BARGAIN HUNTERS ADVANCING NASDAQ ISSUES JUST BARELY TOPPED DECLINERS 1492 TO 1458 ON NASDAQ NATIONAL MARKET VOLUME OF 278953600 SHARES AND TOTAL VOLUME OF 317956000 WEDNESDAY 288296300 NATIONAL MARKET SHARES CHANGED HANDS WHILE OVERALL TURNOVER STOOD AT 326638100 IN THE TECH GROUP BIOLOGIC SYSTEMS A MUNDELEIN ILL DESIGNER OF COMPUTERBASED ELECTRODIAGNOSTIC SYSTEMS FOR HOSPITALS RACED 1/2 HIGHER TO 3 1/4 ALSO HIGHER WERE NETRIX A HERNDON VA NETWORKING COMPANY WHICH ADDED 3/4 TO 6 3/4 AND CREDENCE SYSTEMS A FREMONT CALIF SEMICONDUCTOREQUIPMENT CONCERN WHICH ROSE 2 1/4 TO 25 1/2 SOUTHERN ELECTRONICS JUMPED 1 1/8 TO 10 3/4 THE TUCKER GA DISTRIBUTOR OF PERSONAL COMPUTERS SAID IT HAS HIRED SALOMON BROTHERS TO CONSIDER A VARIETY OF STRATEGIC ALTERNATIVES INCLUDING A MERGER SALE OR ACQUISITION CIDCO SURGED TO 19 1/8 FROM ITS OFFERING PRICE LATE WEDNESDAY OF 15 A SHARE THE MORGAN HILL CALIF MAKER OF TELEPHONE EQUIPMENT THAT SUPPORTS NETWORK SERVICES SAID PROCEEDS WILL BE USED TO REDEEM PREFERRED STOCK REPAY BANK BORROWINGS AND FOR WORKING CAPITAL AND GENERAL PURPOSES SECURITY BANCORP BILLINGS MONT GAINED 1 TO 20 THE COMPANY'S SECURITY BANK SUBSIDIARY SAID IT SIGNED AN AGREEMENT TO BUY CERTAIN ASSETS AND LIABILITIES OF THREE BANK BRANCHES IN MONTANA WLR FOODS HINTON VA SOARED 2 7/8 TO 30 3/8 AFTER TYSON FOODS SAID IT WILL BEGIN A TENDER OFFER WEDNESDAY TO BUY WLR FOR 30 A SHARE IN CASH TYSON OF SPRINGDALE ARK SLIPPED 3/4 TO 20 3/4 WESTERN CO OF NORTH AMERICA FELL 1 3/8 TO 12 1/2 ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IT EXPECTS A FIRSTQUARTER LOSS BECAUSE OF A NORMAL SEASONAL DOWNTURN IN THE US PRESSUREPUMPING MARKET WHICH IS BEING EXACERBATED BY THE NEGATIVE IMPACT OF WEAK OIL PRICES A YEAR AGO THE HOUSTON ONSHORE OILFIELD SERVICES AND PRODUCTS CONCERN EARNED 14 CENTS A SHARE POOR EARNINGS HURT ACTAVA GROUP'S STOCK CAUSING IT TO SLIDE 1 3/8 TO 7 ON THE BIG BOARD THE ATLANTA LAWN AND GARDEN EQUIPMENT COMPANY POSTED A FOURTHQUARTER LOSS OF 176 A SHARE COMPARED WITH EARNINGS OF 31 CENTS A YEAR EARLIER AND SUSPENDED ITS NINE CENTSASHARE QUARTERLY DIVIDEND GNI GROUP SKIDDED 2 OR 333 TO 4 ON A DISAPPOINTING EARNINGS OUTLOOK THE DEER PARK TEXAS HAZARDOUS WASTEDISPOSAL CONCERN EXPECTS A LOSS IN BOTH THE FISCAL THIRD AND FOURTH QUARTERS BUT SEES IMPROVED RESULTS IN THE FIRST TWO QUARTERS OF FISCAL 1995 IN ADDITION RAYMOND JAMES & ASSOCIATES LOWERED GNI GROUP TO HOLD FROM BUY OTHER DECLINERS INCLUDED CALGENE A DAVIS CALIF DEVELOPER OF GENETICALLY ENGINEERED PLANTS WHICH SANK 1 TO 12 THE COMPANY SAID IT IS SCALING BACK AT ITS CALGENE FRESH SUBSIDIARY AND PLANS TO SUBSTANTIALLY REDUCE THE MARKETING OF NONGENETICALLY ENGINEERED TOMATOES UNDER ITS MACGREGOR'S BRAND NEWS LATE WEDNESDAY OF A DIVIDEND CUT SENT FIRST UNION REAL ESTATE INVESTMENTS DOWN 2 OR 208 TO 7 5/8 ON THE BIG BOARD THE EQUITY REALESTATE INVESTMENT TRUST VOTED TO CUT ITS QUARTERLY DIVIDEND TO 10 CENTS FOR THE FIRST QUARTER FROM 18 CENTS OF WHICH AN AVERAGE OF SIX CENTS A SHARE WAS CLASSIFIED AS CAPITAL GAINS STOCKS ARE STILL VERY SKITTISH AND WE'RE KEYING OFF THE BOND MARKET SAID RICHARD SILVERMAN EXECUTIVE VICE PRESIDENT IN CHARGE OF TRADING AT D BLECH PEOPLE ARE JUST SITTING ON THE SIDELINES DIGESTING INTEREST RATES AND INFLATION CONCERNS ANALYSTS SAY THE MARKET REMAINS VULNERABLE TO MORE DECLINES NEITHER BLUE CHIPS NOR SMALLCOMPANY STOCKS ARE LEADING RIGHT NOW SAID ALAN ACKERMAN AN EXECUTIVE VICE PRESIDENT AT REICH & CO HE SEES THE INDUSTRIALS THE NASDAQ COMPOSITE AND THE RUSSELL CORRECTING BY ANOTHER 6 TO 8 BY JUNE ALTHOUGH HE REMAINS BULLISH THIS CORRECTION IS CONSTRUCTIVE AND IT'S LONG OVERDUE MR ACKERMAN SAID THERE'S BOUND TO BE MORE CHOPPINESS AND SLOPPINESS UNTIL THE FED MAKES ITS NEXT MOVE 9403040099 940304 HEALTH IN THE LAB MEDICAL STUDIES CHECK REAL LIFE' RESULTS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE SEATED AT A DININGROOM TABLE IN A SPOTLESS RETIREMENTHOME APARTMENT 41YEAROLD DEBBI MCCONNELL IS GATHERING CLUES THAT COULD HELP TRANSFORM DELIVERY OF HEALTH CARE IN THE US THE INTERVIEWER ASKS THE 83YEAROLD WOMAN WHO LIVES IN THE APARTMENT TO RATE HER VISION SINCE SHE HAD A CATARACT REMOVED FROM HER LEFT EYE LATE LAST SUMMER THE WOMAN A RETIRED SCHOOLTEACHER LOOKS AT A SCALE PRINTED ON A PIECE OF CARDBOARD WITH NUMBERS FROM ZERO TO 10 ON IT SHE SLIDES AN ARROW TO THE NUMBER NINE THEN ASKED TO RECALL HER SIGHT BEFORE THE SURGERY SHE AGAIN POINTS THE ARROW TO THE NINE INDICATING SHE THINKS HER SIGHT NOW IS ABOUT THE SAME AS IT WAS BEFORE THE OPERATION IT'S DIFFICULT TO TELL WHETHER THE OPERATION HELPED SHE TELLS MS MCCONNELL MY HUSBAND HAD IT AND AS SOON AS HE HAD THE PATCH TAKEN OFF HIS EYE HE WAS AMAZED AT HOW BLUE THE SKY WAS I NEVER HAD THAT AHA' EXPERIENCE THE INTERVIEW WHICH COVERS MORE THAN 250 QUESTIONS AND TAKES NEARLY TWO HOURS IS PART OF AN AMBITIOUS INVESTIGATION BY MEDICAL RESEARCHERS AT THE JOHNS HOPKINS MEDICAL INSTITUTIONS INTO THE EFFECTIVENESS OF CATARACT SURGERY WHEN THE RETIRED SCHOOLTEACHER'S ANSWERS ARE COMBINED AND ANALYZED WITH THOSE FROM DOZENS OF OTHER CATARACT PATIENTS AND THEIR DOCTORS THE RESULTS ARE EXPECTED TO SHED NEW LIGHT ON HOW DOCTORS SHOULD TREAT AND MANAGE AN AILMENT THAT LEADS TO MORE THAN ONE MILLION SURGICAL PROCEDURES ON ELDERLY AMERICANS EACH YEAR WE'RE TRYING TO FIGURE OUT WHAT WORKS AND WHAT DOESN'T AND WHAT PROVIDES THE MOST BENEFIT IN PATIENTS WITH CATARACTS SAYS EARL P STEINBERG DIRECTOR OF MEDICAL TECHNOLOGY AND PRACTICE ASSESSMENT AT HOPKINS AND LEADER OF A TEAM OF 25 RESEARCHERS ON THE PROJECT BROADLY THAT'S THE AIM OF THE BURGEONING FIELD OF OUTCOMES RESEARCH AS IT'S CALLED INSTEAD OF JUST SETTLING FOR THE RESULTS OF THE EXPERIMENTAL TRIALS DONE WHEN A THERAPY IS JUST BEING DEVELOPED OUTCOMES RESEARCH LOOKS AT HOW A TEST OR TREATMENT PERFORMS IN REAL LIFE WHEN IT'S USED BY HUNDREDS OF DOCTORS ON A BROAD POPULATION OF PATIENTS DR STEINBERG SAYS LOOKING AT THE PRACTICE OF MEDICINE AND THE OUTCOMES ASSOCIATED WITH IT IS A CRITICAL PART OF HEALTH CARE AND OF THE HEALTHREFORM PROCESS SAYS JARRETT CLINTON OUTGOING ADMINISTRATOR OF THE FEDERAL AGENCY FOR HEALTH CARE POLICY AND RESEARCH THE AGENCY PART OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES CURRENTLY FUNDS MORE THAN 50 MILLION OF OUTCOMESRESEARCH PROJECTS A YEAR THROUGH WHAT ARE CALLED PATIENTOUTCOMES RESEARCH TEAMS INCLUDING THE CATARACT TEAM AT HOPKINS IN OUTCOMES RESEARCH RESEARCHERS LOOK BEYOND BODY COUNTS WHO LIVES AND WHO DIES TO THE IMPACT OF CARE ON A PATIENT'S DAYTODAY LIFE THAT MEANS TRACKING PATIENTS FOR MONTHS OR EVEN YEARS AFTER TREATMENT SEEKING OUT AND GIVING SCIENTIFIC WEIGHT TO THEIR VIEWS SOMETHING MEDICINE TRADITIONALLY HAS BEEN RELUCTANT TO DO DR STEINBERG'S INTEREST IN THE FIELD DATES TO HIS TRAINING AS AN INTERNIST IN THE EARLY 1980S AT MASSACHUSETTS GENERAL HOSPITAL IN BOSTON HE RECALLS HE WAS STRUCK BY THE FACT THAT DOCTORS WERE CONSTANTLY GRUMBLING ABOUT INCREASING REGULATION OF MEDICAL DECISIONS BY GOVERNMENT AND INSURERS AT THE SAME TIME HE SAYS I SAW MANY INSTANCES WHERE SENIOR PHYSICIANS WERE ORDERING TESTS AND DOING PROCEDURES THAT I THOUGHT PROVIDED LITTLE OR NO VALUE THESE EXPERIENCES CONVINCED HIM THAT DETERMINING HOW TO DELIVER COSTEFFECTIVE CARE WOULD BE AS IMPORTANT AS BASIC MEDICAL SCIENCE TO HIS PROFESSION AND I THINK IT IS CRUCIAL HE ADDS THAT PHYSICIANS LEAD RATHER THAN BE LED IN DETERMINING WHAT OPTIMAL MEDICAL PRACTICE IS DR STEINBERG AND HIS COLLEAGUES RELY ON SURVEYS QUESTIONNAIRES HUGE MEDICAL CLAIMSDATABASES AND THE MEDICAL LITERATURE ITSELF FOR THEIR WORK IN ONE PROJECT FOR INSTANCE THE TEAM REVIEWED 6000 PREVIOUSLY PUBLISHED CATARACT STUDIES CULLING OUT 90 THAT DEALT WITH THE MOST RELEVANT AND SOPHISTICATED TECHNIQUES USED IN THE PROCEDURE IN A PAINSTAKING REVIEW THEY GRADED EACH OF THE 90 STUDIES ON A SCALE OF ONE TO 100 WITH 100 BEING THE MOST RELIABLE THE AVERAGE OF ALL THE STUDIES WAS 431 INDICATING THAT MANY OF THE CATARACT STUDIES ARE FLAWED AND SUSPECT DR STEINBERG SAYS YET WHAT DOCTORS OUT IN THE REAL WORLD BELIEVE IS TRUTH IS BASED ON THIS LITERATURE HE SAYS NEVERTHELESS AFTER TAKING THE FLAWS INTO ACCOUNT THE RESEARCHERS ADDED UP THE RESULTS OF THE STUDIES AND HOW FREQUENTLY 18 DIFFERENT COMPLICATIONS OF CATARACT SURGERY HAD OCCURRED MOST COMPLICATIONS WERE RARE BUT ONE A CLOUDING OF THE EYE CAPSULE OCCURRED IN NEARLY 20 OF CASES THE FINDINGS WHICH APPEAR IN THE FEBRUARY ISSUE OF ARCHIVES OF OPHTHALMOLOGY MAY HELP BOTH DOCTORS AND PATIENTS CONSIDERING THE SURGERY BETTER ASSESS ITS RISKS AND BENEFITS IN ANOTHER STUDY THE RESEARCHERS IN COLLABORATION WITH SCIENTISTS AT GEORGETOWN UNIVERSITY FOUND THAT PATIENTS WHO UNDERGO A WIDELY USED LASER PROCEDURE TO FIX CLOUDY EYE CAPSULES ARE NEARLY FOUR TIMES MORE LIKELY THAN OTHER PATIENTS TO SUFFER RETINAL DETACHMENT A RARE BUT DEVASTATING COMPLICATION THAT CAN CAUSE BLINDNESS BUT THE FINDING WAS FLAWED BECAUSE THE 60000 MEDICAL CLAIMS IT WAS BASED ON DIDN'T SAY WHETHER THE EYE WITH THE DETACHED RETINA WAS ALSO THE EYE WHERE THE LASER WAS USED TO CLARIFY THE ISSUE THE RESEARCHERS MOUNTED A SECOND STUDY THAT INCLUDED THE EXTRAORDINARY STEP OF GETTING NAMES OF PATIENTS AND DOCTORS SO THEY COULD GET NECESSARY DATA FROM PATIENT MEDICAL CHARTS WITH A PROMISE TO PROTECT CONFIDENTIALITY THEY RECENTLY MAILED QUESTIONNAIRES TO 2400 DOCTORS ASKING FOR DATA ON THE AFFECTED EYES AND WHETHER PATIENTS HAD MEDICAL PROBLEMS SUCH AS DIABETES THAT COULD ALSO CAUSE RETINAL DETACHMENT THE RESULTS IT'S HOPED WILL HELP DOCTORS AND PATIENTS WEIGHING THE LASER PROCEDURE TO AVOID WHAT THE INITIAL STUDY SUGGESTED COULD BE 13000 CASES OF RETINAL DETACHMENT A YEAR ANOTHER OF THE GROUP'S ACCOMPLISHMENTS IS THE DEVELOPMENT OF A 14ITEM QUESTIONNAIRE THAT MAY BE MORE EFFECTIVE THAN THE WIDELY USED EYE CHART IN DETERMINING WHO MIGHT BENEFIT FROM CATARACT SURGERY INSTEAD OF LINES OF LETTERS THAT PRODUCE A DIAGNOSIS OF SAY A 20/60 EYESIGHT THE QUESTIONNAIRE YIELDS A SCORE THAT INDICATES HOW SEVERELY THE CATARACTRESTRICTED VISION IS AFFECTING THE PERSON'S DAILY LIFE HAD THE SCHOOLTEACHER INTERVIEWED BY MS MCCONNELL USED SUCH A TOOL SHE MIGHT HAVE FORGONE SURGERY THOUGH CATARACT SURGERY CARRIES ONLY MINIMAL RISKS HER RESPONSES TO SOME OF MS MCCONNELL'S QUESTIONS INDICATED THAT SHE MIGHT HAVE AVOIDED THE PROCEDURE IF SHE HAD KNOWN THAT THE CHANCES OF SIGNIFICANT BENEFIT WERE SMALL ANOTHER OF MS MCCONNELL'S SUBJECTS HOWEVER MIGHT HAVE WISHED SHE HAD HAD THE SURGERY SOONER FOND OF THE COLOR PINK THE WOMAN HAD PURCHASED ABOUT A YEAR BEFORE HER OPERATION A BRIGHT PINK DRESS AND A PINK HAT OR SO SHE THOUGHT AFTER THE SURGERY WHEN SHE PUT THEM ON AND LOOKED IN THE MIRROR MS MCCONNELL SAYS THE DRESS WAS BRIGHT YELLOW AND THE HAT WAS BRIGHT RED 9403040098 940304 FINANCING BUSINESS INTERPROVINCIAL PIPE LINE SYSTEM INC INTERPROVINCIAL PIPE LINE SYSTEM INC EDMONTON ALBERTA SAID IT PLANS TO ISSUE 500 MILLION CANADIAN DOLLARS 3687 MILLION OF CONVERTIBLE DEBENTURES TO RAISE PERMANENT FINANCING FOR ITS PROPOSED ACQUISITION OF 85 OF CONSUMERS GAS CO INTERPROVINCIAL SAID THE DEBENTURES WILL BE ISSUED ON AN INSTALLMENT BASIS TO A SYNDICATE OF CANADIAN UNDERWRITERS LED BY RBC DOMINION SECURITIES INC THE EDMONTON PIPELINE COMPANY SAID IT EXPECTS TO RECEIVE ABOUT C1875 MILLION ON THE DEBENTURES' MARCH 24 ISSUE DATE AND AN ADDITIONAL C3125 MILLION ON PAYMENT OF THE FINAL INSTALLMENT DUE NEXT MARCH 1 IT SAID IT WILL REDEEM THE FIRST INSTALLMENT FOR CASH PLUS UNPAID INTEREST IF IT FAILS TO GET GOVERNMENT APPROVAL FOR THE CONSUMERS ACQUISITION BY MARCH 1 THE COMPANY SAID EACH C1000 DEBENTURE WILL BE CONVERTIBLE INTO 30651 COMMON SHARES AT A CONVERSION PRICE OF C32625 A SHARE AT ANY TIME AFTER THE ACQUISITION IS APPROVED AND THE SECOND INSTALLMENT HAS BEEN PAID IT SAID CONVERSION OF ALL THE DEBENTURES WOULD RAISE ITS NUMBER OF SHARES OUTSTANDING BY 153 MILLION TO 552 MILLION INTERPROVINCIAL'S SHARES CLOSED YESTERDAY AT 24 A SHARE UP 75 CENTS IN TRADING ON THE NASDAQ STOCK EXCHANGE INTERPROVINCIAL SAID IT EXPECTS TO FILE A PRELIMINARY PROSPECTUS FOR THE ISSUE WITH CANADIAN SECURITIES REGULATORS ON OR BEFORE MARCH 4 THE ISSUE WON'T BE REGISTERED IN THE US THE COMPANY ADDED 9403040097 940304 WHO'S NEWS COASTAL CORP NAMES DAVID ARLEDGE TO FILL VACANT PRESIDENT POST HOUSTON COASTAL CORP APPOINTED DAVID A ARLEDGE PRESIDENT A POST THAT HAD GONE UNFILLED SINCE JULY 1993 MR ARLEDGE 49 YEARS OLD HAD BEEN COASTAL'S CHIEF OPERATING OFFICER AND A SENIOR VICE PRESIDENT SINCE LAST YEAR AND HAD WIDELY BEEN SEEN AS THE EXECUTIVE NEXT IN LINE FOR THE PRESIDENT'S JOB HE SUCCEEDS JAMES R PAUL WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS MR ARLEDGE WILL REMAIN COASTAL'S CHIEF OPERATING OFFICER BUT THE HUGE ENERGY HOLDING COMPANY STILL WILL BE LED PRIMARILY BY ITS OUTSPOKEN FOUNDER AND CHAIRMAN OSCAR S WYATT JR WHO TOOK BACK THE TITLE OF CHIEF EXECUTIVE LAST YEAR AFTER MR PAUL'S DEPARTURE COASTAL A PIPELINE AND REFINING COMPANY HAS BEEN BETTER AT THE FORMER THAN AT THE LATTER RECENTLY IT HAS BEEN RESTRUCTURING ITS REFINING OPERATIONS INCLUDING CLOSING SEVERAL PLANTS AND UPGRADING THE SYSTEM'S ABILITY TO PRODUCE HIGHERMARGIN PETROLEUM PRODUCTS THE COMPANY'S EFFORTS APPEAR TO HAVE BORNE FRUIT LAST YEAR IT HAD NET INCOME OF 1158 MILLION OR 1 A SHARE ON REVENUE OF 1014 BILLION IN 1992 COASTAL HAD A NET LOSS OF 1268 MILLION OR 123 A SHARE ON REVENUE OF 1006 BILLION THE 1992 RESULTS INCLUDE A PRETAX RESTUCTURING CHARGE OF 125 MILLION IN RELATED MOVES COASTAL SAID IT PROMOTED SAM F WILLSON JR 64 TO EXECUTIVE VICE PRESIDENT FROM SENIOR VICE PRESIDENT CRUDE OIL SUPPLY AND MARKETING TREASURER JEFFREY A CONNELLY 47 TO SENIOR VICE PRESIDENT FROM VICE PRESIDENT AND CONTROLLER COBY C HESSE 46 TO SENIOR VICE PRESIDENT FROM VICE PRESIDENT 9403040096 940304 MASSACHUSETTS BANKS' BONDTAX CASE TO GO TO STATE HIGH COURT BOSTON THE MASSACHUSETTS SUPREME JUDICIAL COURT HAS DECIDED TO HEAR LOCAL BANKS' CASE FOR A REFUND FOR TAXES PAID ON INTEREST EARNED FROM STATE BONDS A RULING IN THEIR FAVOR WOULD MEAN A WINDFALL OF ABOUT 400 MILLION IN TAXES ALREADY PAID AND INTEREST THEREON THE BANKS ARE CHALLENGING A 1980 DECISION BY THE STATE DEPARTMENT OF REVENUE THAT THE EXEMPTION FROM TAXES ON STATE AUTHORITIES' BONDS DOESN'T APPLY TO CORPORATIONS THE TAX DEPARTMENT AT THE TIME IMPOSED A 125 FLAT TAX ON INTEREST ON STATE AUTHORITIES' BONDS THE MASSACHUSETTS BANKS INCLUDING BANK OF BOSTON CORP SHAWMUT NATIONAL CORP BAYBANKS INC STATE STREET BOSTON CORP AND SOUTH SHORE BANK ARGUE THAT A 1952 ENABLING LAW FOR STATE AUTHORITIES OFFERS A BLANKET EXEMPTION AND NEGATES THE LATER DECISION THE FEDERAL DEPOSIT INSURANCE CORP ACTING ON BEHALF OF THE DEFUNCT BANK OF NEW ENGLAND IS ALSO A PLAINTIFF IN THE CASE THE SUPREME JUDICIAL COURT SIDED WITH THE DEPARTMENT OF REVENUE IN 1989 WHEN INSURANCE COMPANIES CONTESTED THE TAX THE BANKS SOUGHT AN APPEAL BUT US SUPREME COURT DECIDED NOT TO CONSIDER THE CASE THE CASE COULD COME UP FOR REVIEW BY THE STATE'S HIGH COURT IN MAY ATTORNEYS SAY IN DECIDING SIMILAR ISSUES IN OTHER STATES A MAJORITY OF STATE COURTS HAVE RULED IN FAVOR OF THEIR RESPECTIVE STATE GOVERNMENTS BUT IF THE BANKS GET THE NOD THEY STAND TO RECEIVE ONE OF THE BIGGEST TAX REFUNDS IN RECENT MASSACHUSETTS STATE HISTORY 9403040094 940304 ACTAVA POSTS LOSS AND OMITS DIVIDEND PANEL BEGINS SEARCH FOR NEW PRESIDENT BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA ACTAVA GROUP REPORTED A STEEPERTHANEXPECTED FOURTHQUARTER LOSS AND SAID IT WAS SUSPENDING ITS DIVIDEND AND BEGINNING A SEARCH FOR A NEW PRESIDENT THE COMPANY WITH OPERATIONS IN LAWNANDGARDEN EQUIPMENT SPORTS GEAR AND PHOTOFINISHING SAID THE LOSS TOTALED 31 MILLION OR 176 A SHARE THAT COMPARED WITH A YEAREARLIER PROFIT OF 5 MILLION OR 31 CENTS A SHARE SALES ROSE 15 TO 3195 MILLION FROM 2766 MILLION THE RESULTS WHICH WERE BELOW ANALYSTS' EXPECTATIONS HELPED PUSH ACTAVA DOWN 1375 OR 16 TO 7 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR ALL OF 1993 ACTAVA REPORTED A NET LOSS OF 476 MILLION OR 277 A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 116 MILLION OR 70 CENTS A SHARE SALES ROSE 7 TO 124 BILLION FROM 115 BILLION ACTAVA WHICH HAS NOW REPORTED FOUR CONSECUTIVE QUARTERLY LOSSES CONTINUES TO BE PLAGUED BY PROBLEMS WITHIN ITS SNAPPER LAWNANDGARDEN DIVISION MANUFACTURING DIFFICULTIES AND HIGH COSTS HAVE DOGGED THE UNIT FOR MORE THAN A YEAR INDEED ACTAVA SAID SNAPPER ACCOUNTED FOR ROUGHLY 63 OF ITS LOSS FOR ALL OF 1993 STILL ACTAVA SAID YESTERDAY THAT IT HAS TABLED EFFORTS TO SELL SNAPPER THE COMPANY SAID THE ATTEMPTS LED SINCE MARCH 1993 BY MERRILL LYNCH CAUSED SUBSTANTIAL DISTRACTION FOR SNAPPER'S MANAGEMENT DISTRIBUTORS AND DEALERS ANALYSTS SAID THE MOVE COULD MAKE THE UNIT MORE PROFITABLE AND THEREFORE MORE ATTRACTIVE IN THE MARKETPLACE STILL ACTAVA'S TROUBLES AREN'T CONFINED TO SNAPPER RESULTS AT RECENTLY ACQUIRED DIVERSIFIED PRODUCTS CORP WHICH MAKES FITNESS AND RECREATION EQUIPMENT WERE DISAPPOINTING THE COMPANY SAID AND ANALYSTS NOTED THAT ACTAVA'S QUALEX PHOTOFINISHING DIVISION IS LAGGING BEHIND THE INDUSTRY WHICH IS MOVING FROM CHEMICAL PROCESSING TO DIGITAL IMAGING THEY NEED TO BECOME MORE INVOLVED IN THE NEWER TECHNOLOGIES WITH A PARTNER SAID JOEL KRASNER AN ANALYST AT SOUTHCOAST CAPITAL CORP IN NEW ORLEANS THE OVERALL LOSSES HOWEVER PROMPTED ACTAVA TO SUSPEND ITS QUARTERLY DIVIDEND OF NINE CENTS A SHARE AND THE COMPANY SAID IT HAS APPOINTED A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS TO SEARCH FOR A PRESIDENT TO SUCCEED CHARLES R SCOTT WHO ALSO SERVES AS ACTAVA'S CHIEF EXECUTIVE MR SCOTT 65 YEARS OLD COULDN'T BE REACHED FOR COMMENT IN A PREPARED STATEMENT HOWEVER HE SAID HE FULLY SUPPORTED THE COMPANY'S DECISION TO BEGIN A SEARCH FOR MY SUCCESSOR MR SCOTT ALSO DESCRIBED HIMSELF AS VERY DISAPPOINTED WITH THE COMPANY'S LATEST FINANCIAL RESULTS BUT SAID ACTAVA'S PROBLEMS HAVE BEEN PROPERLY ADDRESSED AND A TURNAROUND IS IN PROGRESS 9403040092 940304 VENEZUELAN BANK'S FAILURE SPURS CHARGES AGAINST 83 SPECIAL TO THE WALL STREET JOURNAL CARACAS A VENZUELEN JUDGE CHARGED 83 OF VENEZUELA'S TOP BANKERS AND BUSINESSMEN WITH FRAUD CRIMINAL ASSOCIATION OR OTHER CRIMES STEMMING FROM THE COLLAPSE OF BANCO LATINO THE COUNTRY'S SECOND BIGGEST BANK THOSE CHARGED INCLUDE GUSTAVO GOMEZ LOPEZ WHO RESIGNED LAST DECEMBER AS CHAIRMAN OF BANCO LATINO AND THE COUNTRY'S TOP BANKING REGULATOR BANK SUPERINTENDENT ROGER URBINA ALSO CHARGED WAS RICARDO CISNEROS A BANCO LATINO DIRECTOR AND OWNER OF ONE OF VENEZUELA'S BIGGEST BUSINESS GROUPS ORGANIZATION DIEGO CISNEROS MANY OF THE SUSPECTS INCLUDING MESSRS GOMEZ LOPEZ AND CISNEROS ALREADY ARE ABROAD MR GOMEZ LOPEZ WAS CHARGED WITH UNLAWFUL APPROPRIATION FRAUD AND CRIMINAL ASSOCIATION ALSO FACING THOSE CHARGES WERE GIACOMO LEON BANCO LATINO'S PRESIDENT AND MR GOMEZ LOPEZ'S SUCCESSOR AS CHAIRMAN SIRO FEBRES CORDERO THE BANK'S GENERAL COUNSEL AND HALF A DOZEN MEMBERS OF THE BANK'S BOARD MR CISNEROS AND OTHERS WERE CHARGED WITH PUBLISHING FALSE FINANCIAL STATEMENTS MR URBINA WAS CHARGED WITH COVERING UP CRIMES 9403040091 940304 MARKETING & MEDIA ADVERTISING ON MADISON AVENUE AGENCIES ARE LINING UP TO WOO DWORIN BY KEVIN GOLDMAN STEVE DWORIN HAS BECOME THE DIANE SAWYER OF MADISON AVENUE MAJOR ADVERTISING AGENCIES ARE SCRAMBLING TO LURE MR DWORIN MUCH AS THE BROADCAST NETWORKS COMPETED LAST MONTH TO SIGN MS SAWYER TO A CONTRACT NEARLY ALL OF THE LARGEST AD AGENCY HOLDING COMPANIES HAVE BEEN IN TOUCH WITH MR DWORIN ABOUT HIGHLEVEL EXECUTIVE POSITIONS THOUGH HIS SALARY WOULD PROBABLY BE ONLY IN THE SIXFIGURE RANGE NOWHERE NEAR THE 5 MILLION TO 7 MILLION ANNUAL PAYCHECK MS SAWYER REPORTEDLY WILL RECEIVE FROM CAPITAL CITIES/ABC THE WOOING STARTED RIGHT AFTER MR DWORIN RESIGNED LAST MONTH AS PRESIDENT OF DEUTSCH/DWORIN ONE OF THE HOTTEST MIDSIZE AD AGENCIES HE RESIGNED OVER WHAT AMOUNTED TO AN EROSION OF HIS PERSONAL RELATIONSHIP WITH DONNY DEUTSCH EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR MR DWORIN 40 YEARS OLD DECLINED TO COMMENT SPECIFICALLY ON WHICH AGENCIES HAVE CONTACTED HIM BUT ACCORDING TO AN INDUSTRY OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED MR DWORIN HAS MET WITH OR HELD INFORMAL CONVERSATIONS WITH THREE OF THE LARGE AD AGENCY HOLDING GROUPS INTERPUBLIC GROUP WPP GROUP AND SAATCHI & SAATCHI OMNICOM GROUP HASN'T STEPPED FORWARD AT LEAST NOT YET IN ADDITION MR DWORIN IS EXPECTED TO MEET WITH RICHARD HUMPHREYS ONE OF FOUR INDIVIDUALS WHO INVESTED IN AYER LAST MARCH AND WHO IS ON THE AGENCY'S EXECUTIVE COMMITTEE ABOUT A HIGHLEVEL POSITION AT THE NATION'S OLDEST INDEPENDENT AGENCY INTERPUBLIC IS SAID TO BE OFFERING MR DWORIN THE POSITION OF CHIEF EXECUTIVE OFFICER OF LINTASNEW YORK WHICH LOST SEVERAL MAJOR ACCOUNTS RECENTLY HE WOULD SUCCEED ANTHONY J TONY MILLER WHO WOULD RETURN TO LINTAS' OPERATION IN CANADA ACCORDING TO ONE INDIVIDUAL WHO DIDN'T WANT TO BE IDENTIFIED IN ADDITION BURT MANNING CHAIRMAN AND CHIEF EXECUTIVE AT WPP GROUP'S J WALTER THOMPSON IS SAID TO BE INTERESTED IN MR DWORIN TO SUPERVISE A GROUP OF THE AGENCY'S MULTINATIONAL ACCOUNTS ALSO IN THE WPP GROUP CHARLOTTE BEERS CHAIRMAN AND CHIEF EXECUTIVE AT OGILVY & MATHER IS INTERESTED IN BRINGING MR DWORIN ABOARD FOR AN UNSPECIFIED ROLE MR DWORIN PREVIOUSLY WORKED AT THOMPSON AS SENIOR VICE PRESIDENT AND DIRECTOR OF ACCOUNT MANAGEMENT AND AT OGILVY AS AN ASSISTANT ACCOUNT EXECUTIVE MR DWORIN RECENTLY MET WITH EXECUTIVES FROM SAATCHI'S CAMPBELL MITHUN ESTY AS WELL A SPOKESMAN FOR AYER SAID WHETHER WE'RE TALKING TO STEVE DWORIN OR ANY OTHER EXECUTIVE IS NOT SOMETHING WE WOULD COMMENT ON SIMILARLY THOMPSON OGILVY AND CAMPBELL MITHUN DECLINED COMMENT BOTH MR MILLER AT LINTAS AND PHILIP GEIER CHAIRMAN OF INTERPUBLIC GROUP WERE TRAVELING AND COULDN'T BE REACHED FOR COMMENT I HAVE A LOT OF RESPECT FOR ALL THESE AGENCIES MR DWORIN SAID AND THE AGENCY THAT PROVIDES THE SUPPORT FOR ME TO MAKE THE BIGGEST IMPACT AND THE BIGGEST DIFFERENCE IS THE ONE I WOULD LIKE TO GO TO WORK FOR I WOULD LIKE A CHALLENGE MADISON AVENUE HASN'T SEEN SUCH A RUSH ON TALENT SINCE GORDON BOWEN WAS LURED TO INTERPUBLIC'S MCCANNERICKSON FROM OGILVY & MATHER THREE YEARS AGO MR BOWEN QUICKLY BOMBED ON MCCANN'S PRESTIGIOUS COCACOLA ACCOUNT AND LEFT THE AGENCY AFTER LESS THAN 18 MONTHS MR BOWEN HAS YET TO LAND AT ANOTHER AGENCY BUT UNLIKE MR BOWEN MR DWORIN ISN'T COMING FROM THE CREATIVE SIDE OF ADVERTISING INSTEAD MR DWORIN'S STRENGTHS ACCORDING TO CORPORATE EXECUTIVES WHO WERE DEUTSCH/DWORIN CLIENTS ARE STRATEGIC PLANNING MARKETING AND NONONSENSE DEALINGS WITH CLIENTS THOSE MAY NOT SOUND UNUSUAL BUT ON MADISON AVENUE WHERE STYLE SOMETIMES TRIUMPHS OVER SUBSTANCE MR DWORIN'S ATTRIBUTES ARE APPARENTLY HIGHLY VALUED HE IS UPFRONT AND MORE IMPORTANT NOT POLITICAL AT ALL SAID STEEN KANTER FORMER PRESIDENT OF IKEA US EAST THE HOME FURNISHINGS CHAIN AND A DEUTSCH/DWORIN CLIENT MOST OF THE ADVERTISING EXECUTIVES I MET IN 22 YEARS OF MERCHANDISING ONLY THOUGHT OF THE SHORTTERM REVENUES STEVE WANTS A LONGTERM RELATIONSHIP SHORTTERM REVENUES ARE THE REWARD DAVID RICHARDS VICE PRESIDENT OF MARKETING AT LENSCRAFTERS A DIVISION OF US SHOE CALLED MR DWORIN A GREAT ACCOUNT MAN HE IS VERY MUCH MORE A PARTNER AS OPPOSED TO AN AGENCY ADVOCATE HE GETS INSIDE YOUR BUSINESS AND UNDERSTANDS EXACTLY WHAT THE CLIENT NEEDS THE STRAIGHTLACED SERIOUS EXECUTIVE HASN'T RECEIVED ANY FORMAL OFFERS YET BUT MR DWORIN CAN AFFORD TO TAKE HIS TIME MULLING OVER POTENTIAL PROPOSALS WHEN HE LEFT DEUTSCH/DWORIN HE OWNED ABOUT 25 OF THE AGENCY WHICH IS BEING REPURCHASED AT THE TIME OF HIS SUDDEN RESIGNATION MR DWORIN SAID HE WOULD TAKE A VACATION AND LOUNGE ON A BEACH BUT THE SUNSHINE HAS ELUDED HIM SO FAR INSTEAD HE HAS VISITED MARTIN SORRELL WPP'S CHIEF EXECUTIVE AT THE COMPANY'S LONDON HEADQUARTERS TO DISCUSS THE POSSIBILITY OF A POSITION AT OGILVY MR DWORIN SAID HE IS FLATTERED BY ALL THE ATTENTION WHICH HE ISN'T USED TO IN THE FLASHY WORLD OF ADVERTISING MR DWORIN DIDN'T STAND OUT RECENTLY HOWEVER HE INADVERTENTLY DREW A LOT OF ATTENTION TO HIMSELF MR DWORIN TRAVELED TO THE HEADQUARTERS OF HARDEE'S FOOD SYSTEMS THE LAST CLIENT SNARED BY DEUTSCH/DWORIN TO SIGN CONTRACTS MR DWORIN DIDN'T WANT TO DRIVE HIMSELF FROM RALEIGH NC TO HARDEE'S HEADQUARTERS AN HOUR AWAY IN ROCKY MOUNT NC SO HE HIRED A LIMOUSINE IT TURNED OUT TO BE A CONSPICUOUS WHITE STRETCH LIMO A VEHICLE THAT THE TOWN IS STILL TALKING ABOUT SAID JERRY GRAMAGLIA EXECUTIVE VICE PRESIDENT OF MARKETING AT HARDEE'S WE TOLD HIM SAID MR GRAMAGLIA TO RENT A CHEVROLET LIKE EVERYONE ELSE THREE OUT OF FIVE COMPANIES MOST ASSOCIATED WITH THE LILLEHAMMER GAMES WEREN'T OFFICIAL OLYMPIC SPONSORS ACCORDING TO A CONSUMER SURVEY CONDUCTED EARLIER THIS WEEK CONSUMERS MENTIONED COCACOLA CO REEBOK INTERNATIONAL CAMPBELL SOUP WENDY'S INTERNATIONAL AND CHRYSLER CORP MOST OFTEN WHEN ASKED TO NAME FIVE OR SIX COMPANIES OR PRODUCTS THAT ARE ASSOCIATED WITH THE OLYMPICS IN ANY WAY REEBOK CAMPBELL AND WENDY'S ADVERTISED HEAVILY DURING THE CBS NETWORK'S BROADCAST BUT DIDN'T FORK OVER AS MUCH AS 40 MILLION TO BE OFFICIAL SPONSORS PERFORMANCE RESEARCH A NEWPORT RI SPORTS MARKETING RESEARCH FIRM SURVEYED 268 RANDOMLY SELECTED US HOUSEHOLDS THAT VIEWED AT LEAST THREE NIGHTS OF CBS'S OLYMPICS COVERAGE THE TELEPHONE SURVEY WAS CONDUCTED SUNDAY AND MONDAY AFTER THE TELEVISED CLOSING CEREMONIES WENDY'S GOT A CONSIDERABLE AMOUNT OF MILEAGE FROM ITS OLYMPICS AD CAMPAIGN ACCORDING TO THE STUDY THE FASTFOOD CHAIN'S SPOTS FEATURING FOUNDER DAVE THOMAS AND A CAMEO BY 1992 FIGURE SKATING CHAMPION KRISTI YAMAGUCHI WENT HEADTOHEAD AGAINST COMMERCIALS FROM MCDONALD'S AN OFFICIAL OLYMPICS SPONSOR BUT WHEN ASKED TO CHOOSE WHICH ONE WAS THE OFFICIAL SPONSOR OF THE 1994 OLYMPIC WINTER GAMES 57 OF CONSUMERS POLLED NAMED WENDY'S COMPARED WITH JUST 37 WHO CORRECTLY CHOSE MCDONALD'S VISA ANOTHER OFFICIAL OLYMPIC SPONSOR DID BETTER IN ITS SHOWDOWN WITH NONSPONSOR AMERICAN EXPRESS CO DESPITE SNIPING BY BOTH PARTIES IN THEIR OLYMPICS ADS SIXTYTHREE PERCENT OF RESPONDENTS CORRECTLY NAMED VISA AS THE OFFICIAL OLYMPICS SPONSOR 35 THOUGHT THE ANSWER WAS AMERICAN EXPRESS COCACOLA'S ADS WERE THE FAVORITE OF 33 OF CONSUMERS SURVEYED CAMPBELL SOUP CAME IN SECOND PICKED BY 8 OF RESPONDENTS CONSUMERS WERE ASKED TO NAME THE US ATHLETES THEY WOULD MOST LIKE TO SEE AS A PRODUCT ENDORSER SPEED SKATERS DAN JANSEN AND BONNIE BLAIR CAME OUT ON TOP WITH 31 AND 25 OF THE VOTE RESPECTIVELY FIGURE SKATER NANCY KERRIGAN CAME IN THIRD WITH 16 FOLLOWED BY SKIERS TOMMY MOE AND PICABO STREET WITH 14 AND 8 RESPECTIVELY WARNERLAMBERT EXECUTIVES AT YOUNG & RUBICAM NEW YORK ARE BRACING FOR THE LOSS OF ABOUT 55 MILLION IN BILLINGS FROM WARNERLAMBERT CO WHICH HAS BEEN QUIETLY REVIEWING AGENCIES INCLUDING Y&R WPP GROUP'S J WALTER THOMPSON AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES IN ANTICIPATION OF A PREVIOUSLY ANNOUNCED JOINT MARKETING VENTURE WITH WELLCOME PLC AT RISK ARE THE CERTS ROLAIDS DENTYNE AND CINNABURST ACCOUNTS AN AGENCY SPOKESMAN DECLINED TO COMMENT EXECUTIVES SAID AN OFFICIAL DECISION IS EXPECTED NEXT WEEK TBWA OMNICOM GROUP'S TBWA SAID IT HAS ACQUIRED LONDON AGENCY HOARE WILKINS AND MERGED IT WITH ITS LONDON OPERATIONS TBWA HOLMES KNIGHT RITCHIE TBWA SAID THE NEW AGENCY KNOWN AS TBWA UK WOULD BILL MORE THAN 160 MILLION FROM CLIENTS ACCOUNT CHANEL INC SAID IT HAS AWARDED SEVERAL NEW CREATIVE ASSIGNMENTS FOR CHANEL FRAGRANCE TO THE ARNELL GROUP NEW YORK BILLINGS COULDN'T BE DETERMINED REGAL INFOMERCIAL PRODUCER REGAL COMMUNICATIONS OF FORT WASHINGTON PA SAID A PREVIOUSLY ANNOUNCED ACQUISITION OF INPHOMATION INC BALTIMORE WOULD BE TERMINATED BY MUTUAL AGREEMENT REGAL HAD ACQUIRED INPHOMATION IN SEPTEMBER FOR CASH AND STOCK IN A DEAL VALUED AT 35 MILLION AT THE TIME INPHOMATION OFFICIALS COULDN'T BE REACHED FOR COMMENT A REGAL SPOKESWOMAN DECLINED TO ELABORATE 9403040090 940304 LEISURE & ARTS BOOKSHELF SEX THE ADULT ROUTE TO HEALTH AND SURVIVAL BY JIM HOLT BIRDS DO IT BEES DO IT LIZARDS ON THE OTHER HAND DO NOT DO IT NEITHER DO DANDELIONS OR AMOEBAS AND CAN WE REALLY BLAME THEM FOR THEIR ABSTINENCE WHAT IS THE POINT OF SEXUAL CONGRESS ANYWAY THERE ARE AFTER ALL FAR MORE EFFICIENT WAYS OF REPRODUCING ONESELF BUDDING FISSIONING CLONING VIRGIN BIRTH WHAT IS THE ADVANTAGE OF HAVING TWO GENDERS MEN ARE A WASTE THEY DO NOT PRODUCE BABIES WOULDN'T WE BE BETTER OFF AS HERMAPHRODITES OR WITH 10000 DIFFERENT SEXES LIKE THE TOADSTOOL THEN ALMOST EVERYONE YOU MET WOULD BE A POTENTIAL PARTNER BUT GIVEN THAT WE DO COME IN PRECISELY TWO SEXES HOW DEEP IS THE EVOLUTIONARY DIVIDE BETWEEN THE MALE AND FEMALE PSYCHE AND THE GREATEST MYSTERY OF ALL WHY DO GENTLEMEN PREFER BLONDES BELIEVE IT OR NOT SCIENTISTS ONLY STARTED SORTING OUT THESE VASTLY IMPORTANT MATTERS A COUPLE OF DECADES AGO THAT WAS WHEN THEY REALIZED THAT EVOLUTION IS MORE ABOUT BREEDING THAN SURVIVAL SURVIVAL OF THE FITTEST REALLY APPLIES TO GENES OUR BODIES ARE MERELY THE EVOLUTIONARY VEHICLES FOR THESE SELFREPLICATING LITTLE MOLECULES AS FAR AS NATURE IS CONCERNED THE SOLE GOAL FOR WHICH HUMANS ARE DESIGNED IS REPRODUCTION THE IMPLICATIONS OF THIS NEODARWINIAN REVOLUTION FOR OUR UNDERSTANDING OF SEX ARE TAKEN UP BY MATT RIDLEY IN THE RED QUEEN SEX AND THE EVOLUTION OF HUMAN NATURE MACMILLAN 405 PAGES 25 MR RIDLEY A FORMER SCIENCE EDITOR AND WASHINGTON CORRESPONDENT FOR THE ECONOMIST HAS WRITTEN A TERRIFIC BOOK WITTY AND LUCID AND BRIMMING WITH PROVOCATIVE CONJECTURES IT IS IN A WORD EVERYTHING YOU ALWAYS WANTED TO KNOW ABOUT SEX BUT WERE TOO UNSCIENTIFIC TO ASK SO WHAT IS THE POINT OF SEX OF THE SEVERAL COMPETING HYPOTHESES THAT HAVE EMERGED THE ONE WITH THE MOST EVIDENCE IN ITS FAVOR IS ALSO THE LEAST OBVIOUS AND IN THE PRESENT AGE THE MOST IRONIC SEX EVOLVED BECAUSE OF ITS VALUE IN THWARTING DISEASE AS MR RIDLEY ABLY EXPLAINS THE SEXUAL MIXING OF GENES IS ANALOGOUS TO CHANGING THE LOCKS CONSTANTLY AGAINST INVADING MICROBES SO MEN ARE NOT REDUNDANT AFTER ALL THEY ARE WOMAN'S INSURANCE POLICY AGAINST HER CHILDREN BEING WIPED OUT BY INFLUENZA AND SMALLPOX SEX THEN WOULD SEEM TO BE A ZEROSUM CONTEST THAT WE PLAY AGAINST PARASITES OVER THE GENERATIONS LIKE THE RED QUEEN THAT ALICE ENCOUNTERED IN THROUGH THE LOOKINGGLASS WE MUST RUN AS FAST AS WE CAN SIMPLY TO KEEP FROM LOSING GROUND THE SAME PRINCIPLE APPLIES TO THE EVOLUTION OF COURTSHIP CONTENDS MR RIDLEY ALTHOUGH THERE THE COMPETITION IS BETWEEN GUY AND DOLL NOT HOST AND DISEASE THE FEMALE NEEDS TO KNOW THE TRUTH ABOUT THE MALE HIS HEALTH WEALTH AND GENES THE MALE WANTS TO EXAGGERATE THE INFORMATION THE FEMALE WANTS THE TRUTH THE MALE WANTS TO LIE THE VERY WORD SEDUCTION IMPLIES TRICKERY AND MANIPULATION IT WAS PRECISELY TO BECOME SMOOTHER AT THIS GAME OF CHARM AND DECEIT THAT WE EVOLVED OUR EXTRAORDINARILY ENLARGED BRAINS HOW ELSE TO ACCOUNT FOR THE RISE OF HUMAN INTELLIGENCE THE TRADITIONAL EXPLANATIONS THE NEED TO MAKE TOOLS TO LEARN LANGUAGE JUST WON'T DO AS MR RIDLEY SHOWS IT IS A DISQUIETING THOUGHT HE WRITES THAT OUR HEADS CONTAIN A NEUROLOGICAL VERSION OF A PEACOCK'S TAIL THERE IS NO SEXUAL MYSTERY IT SEEMS THAT DOES NOT YIELD TO THE NEODARWINIAN LOGIC OF THE RED QUEEN WHY IS A WOMAN LIKELIER TO CONCEIVE A CHILD BY AN ADULTEROUS LOVER THAN BY HER HUSBAND HOW DOES NATURE ENSURE THAT INCEST OCCURS BUT RARELY AND WHY IS IT TRUE AS HENRY KISSINGER ONCE OBSERVED WITH AWFUL SMUGNESS THAT POWER IS THE GREATEST APHRODISIAC THE AUTHOR'S INSISTENCE THAT THERE ARE DEEP PSYCHOLOGICAL DIFFERENCES BETWEEN MEN AND WOMEN PUTS HIM SQUARELY IN THE CAMILLE PAGLIA CAMP EXCEPT UNLIKE MS PAGLIA MR RIDLEY HAS SCIENCE TO BACK HIM UP HE EVEN ADVANCES AN ARGUMENT IN FAVOR OF AFFIRMATIVE ACTION FOR WOMEN EVOLUTIONARY PRESSURES MAY HAVE MADE MEN BETTER AT CLAMBERING UP POLITICAL HIERARCHIES BUT HISTORICAL EVIDENCE SUGGESTS THAT WOMEN ARE BETTER EQUIPPED BY NATURE TO RUN COUNTRIES SHOULD YOU BRIDLE AT HIS CONCLUSION MR RIDLEY WILL NOT BE OFFENDED EVER THE UNDOGMATIC SCIENTIST HE CHEERFULLY CONCEDES THAT HALF THE IDEAS IN THIS BOOK ARE PROBABLY WRONG FOR MANY OF US ERRANT HUMANS THE JOY OF SEX IS NOT INFREQUENTLY FOLLOWED BY THE MELANCHOLY OF REGRET AND NOT JUST HUMANS AS THE OLD LATIN PROVERB GOES EVERY ANIMAL IS SAD AFTER INTERCOURSE REGRET IS THE MORAL SENTIMENT THAT STABS YOU WHEN IT IS TOO LATE AND THEN YOU WALLOW IN IT YET THERE ARE PLENTY OF GOOD THINGS TO SAY ABOUT REGRET AND JANET LANDMAN SAYS THEM WITH ELOQUENCE AND ERUDITION IN REGRET THE PERSISTENCE OF THE POSSIBLE OXFORD 366 PAGES 25 RANGING WITH EQUAL ASSURANCE OVER LITERATURE PHILOSOPHY ECONOMICS AND HER OWN FIELD OF PSYCHOLOGY MS LANDMAN PROBES THE EXPERIENCE OF REGRET FROM EVERY IMAGINABLE ANGLE THERE IS NOTHING NEUROTIC OR IRRATIONAL SHE ARGUES ABOUT DWELLING ON A LOST LOVE A MISSED OPPORTUNITY OR A BOTCHED INVESTMENT INDEED IF PROPERLY TRANSFORMED REGRET CAN BE THE BEGINNING OF WISDOM JUST THE NEWS TO BUCK YOU UP ON THE COMPUNCTIOUS MORNING AFTER 9403040089 940304 LEISURE & ARTS ALBEE'S BACK WITH A DAZZLER BY MELANIE KIRKPATRICK NEW YORK WITH THREE TALL WOMEN EDWARD ALBEE HAS FINALLY WRITTEN ANOTHER GREAT PLAY AFTER YEARS OF INDIFFERENT EFFORTS THE ENFANT TERRIBLE OF THE '60S HAS TURNED OUT A DAZZLER WORTHY OF MENTION IN THE SAME BREATH AS WHO'S AFRAID OF VIRGINIA WOOLF 1962 AND A DELICATE BALANCE 1966 IN A THEATRICAL SEASON AS WINTRY AS NEW YORK'S ARCTIC WEATHER THREE TALL WOMEN BLAZES AS BRIGHT AS A MIDSUMMER DAY THE THREE TALL WOMEN ARE IDENTIFIED ONLY AS A B AND C A MYRA CARTER IS AN AILING 92YEAROLD MATRIARCH WHO IN ACT I FLOATS IN AND OUT OF SENILITY BUT NEVER OUT OF COMMAND B MARIAN SELDES IS HER SHARPTONGUED MIDDLEAGED COMPANION AND C JORDAN BAKER IS HER CATTY YOUNG ATTORNEY THE PLAY TAKES PLACE IN A'S BEDROOM FROM WHICH A WITH THE UNCERTAIN KIDNEYS OF THE ELDERLY OCCASIONALLY FLEES FOR THE BATHROOM THE WELLAPPOINTED ROOM CLEARLY IS THAT OF A RICH WOMAN BUT IT HAS A FIVESTARHOTEL LOOK ABOUT IT THE ONLY PERSONAL POSSESSIONS ARE A'S MEMORIES I THINK YOU REMEMBER EVERYTHING SAYS B IN A GENTLE MOMENT YOU JUST CAN'T BRING IT TO MIND ALL THE TIME MEMORIES ARE WHAT ACT II IS ABOUT WHILE A'S BODY LIES IN A COMA IN THE HUGE BED THAT DOMINATES THE STAGE THE THREE TALL WOMEN PLAY A AT DIFFERENT STAGES OF HER LIFE IT IS A BRILLIANT DRAMATIC DEVICE STUNNINGLY EXECUTED TOGETHER THE THREE INCARNATIONS OF THE SAME WOMAN EXAMINE THEIR SHARED LIFE THE YOUNG C IS RADIANT AND SENSUAL AND MORE THAN A TAD CALCULATING AS SHE ENTHUSES ABOUT HER VARIOUS GENTLEMEN ADMIRERS MIDDLEAGED B HAS MORE SHARP EDGES SHE IS SHREWD AND WEARY AND OCCASIONALLY HOVERS NEAR DESPAIR IT IS LEFT TO A WITH HER MIND RESTORED TO ITS FULL CAPACITY TO COMPLETE THE PICTURE CACKLING WITH WIT AND BRANDISHING HER CANE AS A MONARCH MIGHT WIELD A SCEPTER SHE REFINES HER YOUNGER SELVES' RECOLLECTIONS WITH DRYEYED REALISM HE WAS WONDERFUL A RECALLS OF A YOUNG LOVER BUT THEN THERE WAS LIFE LIFE INCLUDED A PENGUINSHAPED HUSBAND AN ALCOHOLIC SISTER AND A HOMOSEXUAL SON THE PLAY'S MOST ELECTRIFYING MOMENT IS THE WOMEN'S RECOUNTING OF A'S BREAK WITH HER SON DECADES BEFORE THE TIME OF THE PLAY AS THEY ARE TELLING THAT STORY A YOUNG MAN APPEARS AT A'S BEDSIDE AND TAKES HER HAND HE SAYS NOTHING BUT HIS MUTE DEVOTION IS HEARTRENDING IT IS ALSO FOR MR ALBEE A SOMEWHAT AUTOBIOGRAPHICAL MOMENT AS HE TOO SUFFERED REJECTION BY HIS MOTHER FOR HIS HOMOSEXUALITY EACH OF MR ALBEE'S WOMEN IS MEMORABLE AND EACH OF THE ACTRESSES IS EXCEPTIONAL AS DIRECTED BY LAWRENCE SACHAROW THEY WORK SEAMLESSLY TOGETHER BUT IT IS MS CARTER AS A WHO IS ASTONISHING SHE PLAYS A AS A WOMAN FULL OF LIFE ON THE VERGE OF DEATH WITH A FRAIL BODY THAT CAN BARELY CONTAIN HER EXUBERANCE SHE HAS THE CLARITY AND THE LACK OF INHIBITION OF THE VERY OLD WITH NONE OF THE SELFPITY IF THE TRUTH BE TOLD THERE IS ANOTHER REASON MR ALBEE'S PLAYS HAVEN'T MADE IT TO BROADWAY OR EVEN TO OFFBROADWAY IN SOME CASES IN RECENT YEARS AND THAT IS THAT CRITICS HAVEN'T LIKED THEM MUCH THE GENERAL OPINION IS THAT THEY HAVE BECOME INCREASINGLY ABSTRACT AND CEREBRAL THAT THEIR TALKINESS AND UNDRAMATIC FORMATS MAKE THEM INACCESSIBLE TO MOST AUDIENCES AND SO PERHAPS IT'S UNDERSTANDABLE THAT MR ALBEE IS SAID TO LOATHE BOTH CRITICS AND BROADWAY NEITHER HAVE BEEN KIND TO HIM IN RECENT YEARS HE HAS TENDED TO STAY AWAY FROM NEW YORK TEACHING PLAYWRITING AT THE UNIVERSITY OF HOUSTON AND OTHER ACADEMIC INSTITUTIONS AND DIRECTING HIS OWN PLAYS IN SUCH FAVORITE SPOTS AS HOUSTON'S ALLEY THEATER AND VIENNA'S ENGLISH THEATER NEW YORKERS CAN SEE MORE ALBEE THAN USUAL THIS YEAR THE SIGNATURE THEATER OFFOFFBROADWAY IS DOING A SEASON OF HIS PLAYS THE CURRENT OFFERING IS THREE ONEACTS IT IS WITH THREE TALL WOMEN THOUGH THAT HE MAKES A TRIUMPHANT RETURN TO THE TOWN THAT FETED AND LIONIZED THE YOUNG PLAYWRIGHT THREE DECADES AGO WELCOME BACK MR ALBEE IF I KNEW DAVID IVES AUTHOR OF THE HIT OFFBROADWAY COMEDY ALL IN THE TIMING I'D MAKE A POINT OF STAYING AWAY FROM HIM ON APRIL FOOL'S DAY JUDGING FROM THE ANTICS THAT HE'S ORCHESTRATED AT THE JOHN HOUSEMAN THEATRE HE'S CAPABLE OF SOME INNOVATIVE PRANKS MOST OF ALL IN THE TIMING'S SIX SKETCHES ORIGINATED AT A MANHATTAN COMEDY CLUB AND HERE ARE STRUNG TOGETHER IN NO DISCERNIBLE ORDER EXCEPT THAT EACH IS FUNNIER THAN THE LAST IN NO 5 PHILIP GLASS GOES TO BUY A LOAF OF BREAD AND EVERYONE IN THE BAKERY IS CHATTERING IN STACCATO TONES THAT PARODY ONE OF MR GLASS'S REPETITIVE COMPOSITIONS IN NO 3 MY FAVORITE THREE QUARRELING MONKEYS NAMED SWIFT MILTON AND KAFKA ARE LOCKED IN A CAGE WITH TYPEWRITERS TO SEE HOW LONG IT WILL TAKE THEM TO WRITE HAMLET NONE OF THIS BUFFOONERY ADDS UP TO ANYTHING THAT REALLY DESERVES TO BE CALLED A PLAY IT'S A STRING OF SKITS LIKE THOSE SID CAESAR USED TO PUT ON TELEVISION BEFORE IT WAS DUMBED DOWN FOR THE MASSES BUT WHO'S BOTHERING WITH DEFINITIONS WHATEVER YOU CALL IT THIS HIGHBROW HORSEPLAY IS DELECTABLE 9403040088 940304 INTERNATIONAL FRENCH STUDENTS WORKERS PROTEST PLANNED WAGE CUTS PARIS SEVERAL THOUSAND STUDENTS AND WORKERS FILED THROUGH PARIS STREETS YESTERDAY IN PROTEST OF GOVERNMENT PLANS TO LOWER THE MINIMUM WAGE BUT PRIME MINISTER EDOUARD BALLADUR REFUSED TO WITHDRAW HIS PROPOSED REFORMS AIMED AT CUTTING FRANCE'S RECORD UNEMPLOYMENT RATE EARLIER IN THE DAY THE LEADER OF THE HARDLINE CGT CONFEDERATION GENERALE DU TRAVAIL UNION WALKED OUT OF A ROUNDTABLE MEETING BETWEEN WORKERS EMPLOYERS AND GOVERNMENT OFFICIALS ALTHOUGH THE GOVERNMENT DID LATER MAKE A MINOR CONCESSION TO UNION DEMANDS CONCERNING WHICH SALARY INDEX SHOULD BE USED IN CALCULATING THE NEW WAGE PACKAGES A CGT OFFICIAL SAID YESTERDAY EVENING THAT THE LEFTWING UNION WOULD PUSH AHEAD WITH ITS PLANS FOR MORE DEMONSTRATIONS MARCH 12 THE GOVERNMENT'S PROPOSED REFORMS WOULD ALLOW EMPLOYERS TO PAY YOUNG WORKERS 20 LESS THAN THE STANDARD MINIMUM WAGE ON CONDITION THEY ALSO PROVIDE SOME FORM OF TRAINING PROGRAM UNION LEADERS FEAR THIS WILL ENCOURAGE COMPANIES TO LAY OFF OLDER WORKERS 9403040084 940304 CREDIT RATINGS MAGMA COPPER CO TUCSON ARIZ STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATING ON THIS COPPER COMPANY'S SENIOR DEBT TO TRIPLEBMINUS FROM DOUBLEBPLUS THE RATING ON THE COMPANY'S SUBORDINATED DEBT AND PREFERRED STOCK WAS RAISED TO DOUBLEBPLUS FROM DOUBLEBMINUS THE OUTLOOK IS STABLE THE RATINGS AGENCY SAID THE TOTAL DEBT WAS ABOUT 400 MILLION AS OF DEC 31 S&P SAID S&P SAID THE UPGRADES REFLECT MAGMA'S COST REDUCTION THROUGH HIGHER COPPER OUTPUT AND PRODUCTIVITY GAINS WHICH LED TO A VERY COMPETITIVE CASHCOPPER COST OF LESS THAN 60 CENTS A POUND AT THE END OF 1993 THE RATINGS AGENCY ALSO CITED MAGMA'S INCREASED ORE RESERVES AND EXPANSION PROGRAM FUNDED BY TWO PREFERRED STOCK OFFERINGS WOOLWORTH CORP NEW YORK STANDARD & POOR'S CORP SAID IT PLACED THIS RETAILER'S SINGLEAMINUS SENIORDEBT RATING AND A2 COMMERCIALPAPER RATING ON ITS CREDITWATCH LIST FOR POSSIBLE DOWNGRADES ABOUT 400 MILLION IN DEBT IS AFFECTED S&P CITED WOOLWORTH'S POOR FOURTHQUARTER EARNINGS 9403040083 940304 MARKETING & MEDIA TCI AND MICROSOFT SET ACCORD TO TEST INTERACTIVE TV SERVICES IN CABLE SYSTEMS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE OPERATOR JOINED FORCES WITH COMPUTER SOFTWARE GIANT MICROSOFT CORP TO TEST INTERACTIVE TELEVISION SERVICES THE COMPANIES SAID THEY AGREED IN PRINCIPLE TO TEST INTERACTIVE SERVICES IN TCI'S CABLE SYSTEMS IN SEATTLE AND DENVER MICROSOFT WHICH IS BASED NEAR SEATTLE IN REDMOND WASH WILL PROVIDE A NEW OPERATING SYSTEM SOFTWARE FOR DELIVERY OF THE SERVICES TALKS BETWEEN TCI AND MICROSOFT HAD BEEN GOING ON PRIOR TO TCI'S AGREEMENT TO COMBINE WITH BELL ATLANTIC CORP WHICH WAS CALLED OFF LAST MONTH FOR MICROSOFT THE AGREEMENT IS THE FIRST TO LINK IT WITH A CABLE PARTNER IN A TRIAL OF INTERACTIVE SERVICES DESPITE MICROSOFT'S LEADING POSITION IN THE COMPUTER SOFTWARE INDUSTRY ITS SMALLER RIVALS SUCH AS ORACLE CORP AND SILICON GRAPHICS INC ALREADY HAVE STRUCK DEALS TO SUPPLY SOFTWARE TO INTERACTIVE CABLE TRIALS THE FIRST PHASE OF THE TCIMICROSOFT TEST WILL START IN THE FOURTH QUARTER OF 1994 OFFERING SUCH SERVICES AS VIDEOONDEMAND TO EMPLOYEES OF TCI AND MICROSOFT IN SEATTLE IT WILL TEST ALL THE COMPONENTS THAT MICROSOFT'S SOFTWARE WILL HELP RUN INCLUDING VIDEO SERVERS TV SETTOP BOXES AND THE SYSTEM'S OPERATING SOFTWARE IN 1995 THE SECOND PHASE WILL EXPAND INTO A MARKETING TEST OF INTERACTIVE TV SERVICES AMONG TCI CABLE CUSTOMERS IN THE SEATTLE AND DENVER AREAS UP TO TEN OF THOUSANDS OF PARTICIPANTS THE COMPANIES SAID THE SECOND PHASE WILL EXPLORE HOW CONSUMERS ACTUALLY INTERACT WITH THE FEATURES OF THE SERVICE THE TWO COMPANIES SAID THEY WOULD TAKE A DELIBERATE CONSIDERED APPROACH TO MAKE SURE THE SYSTEM MEETS FUTURE CABLE OPERATOR REQUIREMENTS THIS SLOWER MORE GUARDED STYLE MAY SURFACE MORE OFTEN AFTER THE ABORTED LINKING OF TCI AND BELL ATLANTIC SAID WILLIAM BLUESTEIN AN ANALYST WITH FORRESTER RESEARCH INC CAMBRIDGE MASS MR BLUESTEIN ALSO NOTED THAT TIME WARNER INC THIS WEEK SAID IT WOULD DELAY THE LAUNCH OF ITS FULLSERVICE INFORMATION NETWORK IN ORLANDO FLA BY SEVERAL MONTHS CITING EQUIPMENT DELAYS IT WILL BE QUITE A JOB TO GET THESE SYSTEMS UP AND RUNNING SAID NATHAN MYHRVOLD A SENIOR VICE PRESIDENT AT MICROSOFT IT'S THE FIRST TIME ANYBODY'S DONE THIS MR MYHRVOLD SAID THAT TCI AND MICROSOFT ARE ALREADY INVOLVED IN A TRIAL WITH PACIFIC GAS & ELECTRIC CO IN CALIFORNIA TO TEST DELIVERY OF ENERGYINFORMATION SERVICES MICROSOFT NEGOTIATED EXTENSIVELY WITH TCI TIME WARNER AND OTHERS TO FORM A JOINT VENTURE EXPECTED TO SET KEY SOFTWARE STANDARDS FOR THE CONVERGING CABLE COMPUTER AND TELEPHONE COMPANY INDUSTRIES EXECUTIVES CONCEDE THAT EFFORT ORGINALLY DUBBED CABLESOFT IS NOW DEAD BUT WILLIAM GATES MICROSOFT'S CHIEF EXECUTIVE OFFICER RECENTLY EXPRESSED CONFIDENCE THAT MICROSOFT WILL EMERGE AS A KEY SUPPLIER OF SOFTWARE FOR THE INFORMATION HIGHWAY IN APRIL OF LAST YEAR MICROSOFT STRUCK A DEAL WITH INTEL CORP AND GENERAL INSTRUMENT CORP TO BUILD THE POWERFUL SETTOP BOXES FOR INTERACTIVE TV SERVICES THE PRODUCT HAS YET TO BE SELECTED FOR ANY MARKET TESTS BUT A MICROSOFT EXECUTIVE SAID HE WOULD NOT BE SURPRISED IF THE BOXES SHOW UP IN THE TCI FIELD TESTS TCI IS ALSO INVOLVED IN AN INTERACTIVE MOVIEONDEMAND TRIAL IN LITTLETON COLO WITH U S WEST INC AND AMERICAN TELEPHONE & TELEGRAPH CO SEPARATELY TCI ANNOUNCED PRELIMINARY UNAUDITED RESULTS AT ITS ANNUAL ANALYST AND INVESTOR MEETING IN NEW YORK REVENUE FOR 1993 JUMPED 16 TO 415 BILLION WHILE OPERATING CASH FLOW CLIMBED 14 TO 186 BILLION THE COMPANY SAID BOTH REVENUE AND OPERATING CASH FLOW GREW BECAUSE OF STRONG SUBSCRIBER GROWTH AND THE CONSOLIDATION OF THE COMPANY'S EQUITY INTEREST IN STORER COMMUNICATIONS INC TCI ALSO TOLD ANALYSTS IT WOULD RESTRUCTURE THE COMPANY TO MAKE IT MORE LIKE A HOLDING COMPANY WITH FOUR SEPARATE DIVISIONS INTERNATIONAL PROGRAMMING CABLE AND COMMUNICATIONS AND VENTURE CAPITAL DON CLARK CONTRIBUTED TO THIS ARTICLE 9403040082 940304 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS NO NEED TO WEEP FOR THE LAWYERS WHO LABORED IN VAIN TO LINK UP BELL ATLANTIC CORP WITH TELECOMMUNICATIONS INC DESPITE THE COMPANIES' BUSTED PLANS THE ATTORNEYS WILL BE COMPENSATED AT THEIR USUAL HIGH RATES FOR MUCH OF THE TIME THEY PUT IN ACCORDING TO PEOPLE FAMILIAR WITH THE LEGAL PAYMENTS IN THE DEAL THIS PUTS THE LAWYERS IN A BETTER POSITION THAN THE OTHER MAJOR GROUP OF DEAL ADVISERS INVESTMENT BANKERS THEY MAKE MORE THAN LAWYERS IF A DEAL CONNECTS USUALLY AS MUCH AS 05 OF THE PURCHASE PRICE BUT THE BANKERS AREN'T PAID BY THE HOUR AND IF THINGS FALL APART THEY WALK AWAY WITH AT BEST A MODEST FEE THE TCI DEAL FOLLOWED THE USUAL PATTERN SAYS A BANKER ADVISING ONE OF THE PARTIES THE BELL ATLANTIC AND TCI LAWYERS HOWEVER CAN FORGET ABOUT THE BIG PREMIUMS THAT MIGHT HAVE BEEN THEIR DUE IF THE DEAL HAD GONE THROUGH EVEN THOUGH THE LAWYERS WEREN'T RESPONSIBLE FOR THE PRICING DISPUTES THAT ABORTED THE MERGER LAST WEEK AND IN A SIGN OF THE TIMES LAWYERS IN DEALS THAT GO AWRY MIGHT EVEN COME UNDER PRESSURE TO DISCOUNT THEIR RATES ON HOURS THAT THEIR CLIENTS HAVEN'T ALREADY PAID FOR SOME WALL STREET ATTORNEYS SAY IN THE MIDTOLATE 1980S THE WIDE AVAILABILITY OF DEBT FINANCING MEANT THAT RELATIVELY FEW DEALS FOUNDERED THE TAKEOVER BOOM FUELED FANTASTIC FEES AT SOME LAW FIRMS WHERE THE SUCCESSFUL CONCLUSION OF A TRANSACTION WAS REWARDED WITH PREMIUMS OF AS MUCH AS DOUBLE THE 400 HOURLY RATE FOR TOP PARTNERS AT LEAST ONE OF THE MOST ELITE FIRMS WACHTELL LIPTON ROSEN & KATZ WAS EVEN ABLE TO BILL LIKE AN INVESTMENT BANK ABANDONING THE HOURLY RATE ALTOGETHER AND NEGOTIATING FOR A CUT OF THE DEAL THIS NEWSPAPER REPORTED IN 1988 THAT WACHTELL LIPTON CHARGED 20 MILLION FOR ITS TWO WEEKS' WORK REPRESENTING KRAFT INC DURING ITS 129 BILLION TAKEOVER BY PHILIP MORRIS COS ALTHOUGH PREMIUM BILLING CONTINUES IN DIFFICULT DEALS THE SORT OF CONTESTED TRANSACTION THAT USUALLY GENERATES PREMIUMS IS RARER THESE DAYS AND THAT HAS MADE THE ENVIRONMENT MUCH MORE FAVORABLE TO CLIENTS MANY TOP MERGER LAWYERS SAY COMPANIES BRING MORE MERGER WORK INHOUSE FOR FRIENDLY DEALS AND OUTSIDE LAWYERS CAN NOW RARELY WRANGLE PREMIUMS OF MORE THAN 50 ABOVE THEIR HOURLY RATE MOREOVER MANY ARE WILLING TO LURE SKITTISH CLIENTS WITH AN AGREEMENT IN ADVANCE THAT IF A TRANSACTION FALLS THROUGH THEY WILL SLASH AS MUCH AS 25 FROM THE AGREEDUPON HOURLY PRICEOFFERING A BARGAIN KNOWN AS A BUSTEDDEAL RATE A WELLKNOWN NEW YORK MERGER LAWYER SAYS HIS CURRENT PITCH TO CLIENTS RUNS LIKE THIS OK WE'LL DO THE WORK UP TO THE TIME THE MERGER CONTRACT IS SIGNED AND IF IT ISN'T SIGNED WE'LL DO IT FOR 80 OF THE HOURLY RATE IF IT IS SIGNED WE'LL BILL YOU STRAIGHT TIME AT NORMAL RATES AND IF THE DEAL CLOSES WE'LL GET A PREMIUM HE SAYS DISCOUNTING IS USUALLY OFFERED TO CLIENTS OF LONG STANDING BECAUSE THE LAW FIRM CAN EXPECT TO RECOUP ITS LOSSES IN FUTURE DEALS DISCOUNTS ALSO ARE SOMETIMES NEGOTIATED DURING THE COURSE OF A DEAL OR AFTER IT FALLS APART PEOPLE FAMILIAR WITH THE BELL ATLANTICTCI MATTER SAY A BUSTEDDEAL RATE WASN'T NEGOTIATED AT THE OUTSET THOUGH SOMETIMES COMPANIES INTRODUCE THE SUBJECT AFTER THE FACT ALTHOUGH TCI HAS A LONGTERM RELATIONSHIP WITH ITS PRINCIPAL OUTSIDE ATTORNEY JEROME KERN OF NEW YORK A LAWYER FAMILIAR WITH THE ARRANGEMENT SAID THAT THE CABLE COMPANY PAYS MR KERN TIME AND DISBURSEMENTS WIN LOSE OR DRAW AND THAT THERE WERE NO ADJUSTMENTS IN THIS CASE BELL ATLANTIC'S OUTSIDE LAW FIRM NEW YORK'S SKADDEN ARPS SLATE MEAGHER & FLOM HADN'T REPRESENTED THE COMPANY IN A DEAL BEFORE STEPHEN BANKER THE SKADDEN LAWYER WHO HELPED LAND THE PHONE COMPANY'S WORK DECLINED TO COMMENT ABOUT FEES PRECISE CALCULATIONS OF THE LEGAL FEES IN THE SCUTTLED DEAL AREN'T AVAILABLE FOR ONE THING TIME SHEETS AND OTHER FEE MATERIAL HAVEN'T YET BEEN COMPLETELY SORTED OUT SAY PEOPLE INVOLVED WITH BOTH COMPANIES' LEGAL WORK FOR ANOTHER LAWYERS RISK UPSETTING CLIENTS BY TALKING ABOUT FEES AND THEY ARE ESPECIALLY DISINCLINED TO DISCUSS FEES WHEN A MERGER DEAL DOESN'T SUCCEED FINALLY AND MOST IMPORTANTLY THE LAWS THAT MANDATE DISCLOSURE OF CERTAIN BANKERS' FEES DON'T APPLY TO LAWYERS THE SECURITIES AND EXCHANGE COMMISSION REQUIRES DISCLOSURE OF THE COMPENSATION OF ANYONE MAKING SOLICITATIONS OR RECOMMENDATIONS TO SHAREHOLDERS IN CONNECTION WITH A TENDER OFFER UNDER THIS RULE LAWYERS DON'T COUNT BECAUSE UNLIKE INVESTMENT BANKERS THEY DON'T DEAL WITH THE PUBLIC EVEN SO IT SEEMS CLEAR THAT THE LEGAL BILLS IN THE TCI MATTER WERE SUBSTANTIAL ALTHOUGH THE TWO PARTIES NEVER OFFICIALLY PROGRESSED BEYOND A LETTER OF INTENT THEY CAME VERY CLOSE TO A DEFINITIVE AGREEMENT THAT REQUIRED DOZENS OF OUTSIDE LAWYERS TO SPEND MANY THOUSANDS OF HOURS WORKING ON DRAFTS OF A DEFINITIVE AGREEMENT ACCORDING TO ALAN BULLINER VICE PRESIDENT AND CORPORATE SECRETARY OF BELL ATLANTIC SKADDEN ARPS HAD ABOUT 20 TO 30 LAWYERS WORKING ON THE CASE SINCE IT GOT THE ASSIGNMENT IN AUGUST MR BULLINER SAYS IF THE FIRM BILLED CLOSE TO FULL TIME ON THE PROJECT AT RATES THAT TYPICALLY AVERAGE BETWEEN 200 AND 300 AN HOUR BELL ATLANTIC IS FACING AT LEAST SEVERAL MILLION DOLLARS IN LEGAL BILLS FOR SIX MONTHS' WORK TCI IS PROBABLY IN A SIMILAR BOAT MR KERN'S HOUSTONBASED LAW FIRM BAKER & BOTTS HAS PUT IN A TOTAL OF SOMETHING IN THE NEIGHBORHOOD OF 10000 HOURS SAYS A LAWYER FAMILIAR WITH THE PROJECT BAKER & BOTTS HAS BEEN PAID ON A MONTHLY BASIS FOR THE WORK WHICH INCLUDED DRAFTS OF A MERGER AGREEMENT AND DUEDILIGENCE PROJECTS THE LAWYER DECLINED TO ESTIMATE THE FIRM'S TOTAL LEGAL BILL TO TCI BUT SAYS I'M SURE FEES RAN INTO THE MILLIONS 9403040081 940304 BUSINESS BRIEF LESLIE'S POOLMART FOURTHQUARTER LOSS IS SEEN SLIGHTLY BEATING PREDICTIONS LESLIE'S POOLMART EXPECTS TO REPORT A FOURTHQUARTER NET LOSS OF ABOUT 19 MILLION OR 32 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 17 MILLION OR 30 CENTS A SHARE BRIAN MCDERMOTT PRESIDENT AND CEO SAID SALES IN THE FOURTH QUARTER TRADITIONALLY A WEAK PERIOD FOR THE CHATSWORTH CALIF SWIMMINGPOOL SUPPLY COMPANY WERE UP ABOUT 15 TO 135 MILLION FROM 117 MILLION MR MCDERMOTT SAID FULLYEAR NET INCOME JUMPED TO ABOUT 3 MILLION OR 52 CENTS A SHARE FROM 21 MILLION OR 37 CENTS A SHARE IN 1992 SALES ROSE TO JUST UNDER 120 MILLION FROM 963 MILLION HE SAID HE ADDED THAT COMPARABLESTORE SALES WERE UP 117 THE ANTICIPATED RESULTS ARE SLIGHTLY BETTER THAN ANALYSTS' EXPECTATIONS WHICH HAD CALLED FOR A FOURTHQUARTER LOSS OF ABOUT 35 CENTS A SHARE AND PROFIT OF ABOUT 49 CENTS A SHARE FOR THE FULL YEAR 9403040079 940304 REVIEW & OUTLOOK EDITORIAL POISON THEN RECUSE RECUSAL IS SUDDENLY MUCH IN THE NEWS WITH THE DISCLOSURE THAT TREASURY OFFICIAL AND PARTTIME REGULATOR ROGER ALTMAN GAVE WHITE HOUSE COUNSEL BERNARD NUSSBAUM A HEADSUP ABOUT THE STATUTE OF LIMITATIONS WHILE MR ALTMAN SUBSEQUENTLY PROFERRED A RECUSAL IN HIS POST AS HEAD OF THE RESOLUTION TRUST CORP SOME ASK IF THE DAMAGE IS ALREADY DONE SO THIS IS PERHAPS AN APT MOMENT TO TAKE A CLOSER LOOK AT THE RECUSAL OF PAULA CASEY US ATTORNEY IN LITTLE ROCK FROM THE CASE AGAINST DAVID HALE INDEPENDENT COUNSEL ROBERT FISKE JR IS NOW SUPPOSED TO DETERMINE WHETHER THE PRESIDENT AND MRS CLINTON DID ANYTHING WRONG IN THEIR INVOLVEMENT WITH WHITEWATER DEVELOPMENT CORP BUT AS A RESULT OF MS CASEY'S HANDIWORK AND SOME DECISIONS OF HIS OWN HIS FIRST PRIORITY SEEMS BIZARRE HE AND THREE ASSISTANTS WERE IN COURT THIS WEEK TO PRESS THE PROSECUTION OF THE MOST THREATENING WITNESS SO FAR AGAINST THE PRESIDENT TO REVIEW THE BASICS MR HALE IS A FORMER MUNICIPAL JUDGE APPOINTED BY GOVERNOR CLINTON AND ALSO HEAD OF CAPITAL MANAGEMENT SERVICES INC A SMALLBUSINESS INVESTMENT COMPANY HIS SBIC FAILED AND HE IS NOW CHARGED WITH FRAUD SEARCH WARRANTS IN HIS CASE WERE ISSUED THE MORNING OF VINCENT FOSTER'S SUICIDE AMONG HIS BAD LOANS WAS 300000 TO A COMPANY CONTROLLED BY SUSAN MCDOUGAL A WHITEWATER PARTNER WITH HER HUSBAND AND THE CLINTONS SOME 110000 OF THIS LOAN ENDED UP IN THE WHITEWATER ACCOUNT MR HALE HAS TOLD REPORTERS THAT THE LOAN TO MRS MCDOUGAL WAS MADE AT GOVERNOR CLINTON'S BEHEST MS CASEY WAS APPOINTED US ATTORNEY IN LITTLE ROCK AFTER THE INCOMING CLINTON ADMINISTRATION'S UNPRECEDENTED ACTION OF FIRING ALL SITTING US ATTORNEYS AT A SWOOP WITHOUT REPLACEMENTS READY FOR MANY SHE IS A FORMER CAMPAIGN WORKER FOR AND LAW STUDENT OF THE PRESIDENT REPRINTED NEARBY IS SOME PREINDICTMENT CORRESPONDENCE BETWEEN MS CASEY AND MR HALE'S LAWYER RANDY COLEMAN CONCERNING A POSSIBLE PLEA BARGAIN JUST PRIOR TO HIS INDICTMENT SEE RELATED ARTICLE BARGAINING IN LITTLE ROCK WSJ MARCH 4 1994 WE WOULD NOT RENDER ANY JUDGMENT ON THE SUBSTANCE OF THE CORRESPONDENCE WHICH MUST BE READ AS THE PUSHING AND SHOVING TYPICAL OF SUCH NEGOTIATION GIVEN THE EXPERIENCE OF THE INSIDERTRADING PROSECUTIONS THE WEDTECH CASE AND THE LIKE WE'D BE AMONG THE LAST TO RELY ON UNCORROBORATED PLEABARGAIN TESTIMONY THE EVIDENCE THAT MR HALE MADE FRAUDULENT LOANS SEEMS STRONG AND MR COLEMAN CLEARLY NO FOOL IS TRYING TO POSTURE HIM IN THE BEST LIGHT STILL IT COULD SCARCELY BE CLEARER THAT MS CASEY HAD NO BUSINESS IN THE MIDDLE OF THESE NEGOTIATIONS MR HALE AND MR COLEMAN WERE BEING ASKED TO DELIVER THEIR EVIDENCE TO A LONGTIME ASSOCIATE AND APPOINTEE OF SOMEONE IT PURPORTED TO IMPLICATE ULTIMATELY MS CASEY LIKE MR ALTMAN FOUND IT NECESSARY TO RECUSE HERSELF AS MR COLEMAN SUGGESTED EARLY ON BUT BY THEN MR HALE HAD BEEN PUBLICLY INDICTED PRECLUDING THE POSSIBILITY OF HIS BEING WIRED UP IN AN UNDERCOVER INVESTIGATION INTO AS MR COLEMAN PUT IT THE BANKING AND BORROWING PRACTICES OF SOME INDIVIDUALS IN THE ELITE POLITICAL CIRCLES OF THE STATE OF ARKANSAS WHEN MR FISKE ARRIVED ON THE SCENE HE HAD THE HALE PROSECUTION TO DEAL WITH AND DECIDED TO PRESS IT AS HARD AS POSSIBLE FILING A SUPERSEDING INDICTMENT IN COURT ARGUMENTS THIS WEEK HE WON A RULING THAT MS CASEY'S INVOLVEMENT WITH THE GRAND JURY DID NOT AUTOMATICALLY TAINT THE INDICTMENT THERE WAS NO SMOKING GUN AND SHE RECUSED HERSELF ONLY BECAUSE OF APPEARANCES ETC ETC ALSO IN THESE HEARINGS MR HALE'S CODEFENDANTS WON A SEPARATE TRIAL THEY WILL BE TRIED IN JUNE WHILE MR HALE'S TRIAL WILL START MARCH 28 WE CONSIDER HALE AN ESSENTIAL WITNESS AND THE REASON WE ASKED FOR A PROMPT TRIAL DATE IS THAT IT'S NECESSARY TO RESOLVE THIS PENDING INDICTMENT BEFORE HE'S AVAILABLE TO US MR FISKE SAYS MR HALE HAS NEVER TOLD HIS CLINTON STORY TO LAWENFORCEMENT OFFICIALS MR FISKE'S COURT FILINGS SAY IT'S NECESSARY TO CONCLUDE HIS DUAL STATUS AS WITNESS IN THE OVERALL INVESTIGATION AND AS DEFENDANT HERE ANOTHER LAWENFORCEMENT OFFICIAL MIGHT SEE NO REASON WHY THE TRIAL COULD NOT BE DELAYED WHILE MR HALE'S EVIDENCE WAS COLLECTED AND TESTED HIS DEFENDERS OF COURSE CONTEND HE IS BEING SINGLED OUT FOR PROSECUTION AND PUNISHMENT PRECISELY BECAUSE HE THREATENS TO IMPLICATE OTHERS INCLUDING MR CLINTON THE BEST RESULT WOULD BE A PLEA BARGAIN BEFORE THE MARCH 28 DATE BUT MS CASEY'S PRERECUSAL MANEUVERING COMPLICATES THE PROSPECTS THERE IS NOW OF COURSE NO POSSIBILITY OF USING MR HALE TO GATHER FRESH EVIDENCE ALSO HE NOW HAS THE CONFLICTOFINTEREST GROUNDS ON WHICH TO BASE A SET OF APPEALS AT THE VERY LEAST DELAYING ANY SENTENCE THIS OF COURSE WOULD ALSO DELAY THE WHITEWATER INVESTIGATION PROBABLY BEYOND THE NEXT PRESIDENTIAL ELECTION WITH THE TREND OF BELATED RECUSALS UNDERMINING CONFIDENCE IN THE REGULATORS AND THE ADMINISTRATION OF JUSTICE WHAT'S NEEDED HERE IS NEITHER INDICTMENTS NOR YESTERDAY'S WHITE HOUSE STATEMENT INSTRUCTING OFFICIALS TO BEND OVER BACKWARD TO AVOID WHITEWATER CONFLICTS WHAT'S NEEDED IS SOME PUBLIC ACCOUNTABILITY IF MS CASEY NEEDED TO RECUSE HERSELF IN NOVEMBER WHY NOT SEPTEMBER WHOSE IDEA WAS IT TO FIRE ALL US ATTORNEYS IN THE FIRST PLACE OUR SUSPICION IS THAT IN THE MIDDLE OF IT YOU WILL FIND WEBSTER HUBBELL WHO COULD BEND OVER BACKWARD BY RESIGNING IS THERE ANYONE IN CONGRESS RESPONSIBLE ENOUGH TO GET ANSWERS TO THESE QUESTIONS 9403040078 940304 ABREAST OF THE MARKET STOCKS FALL 732 POINTS TO 382442 ON ANOTHER BOND MARKET SELLOFF BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK ANOTHER SELLOFF IN THE BOND MARKET LEFT STOCKS LOWER BUT THE LOSSES WERE TEMPERED BY TECHNICALRELATED BUYING ALTHOUGH THE TREASURY'S 30YEAR BOND SKIDDED MORE THAN 3/4 POINT LIFTING ITS YIELD TO A NINEMONTH HIGH THE DOW JONES INDUSTRIAL AVERAGE SLIPPED JUST 732 TO 382442 BROADBASED INDEXES THAT TRACK NEW YORK STOCK EXCHANGE SHARES ALSO POSTED MODERATE LOSSES WHILE PRICES GAINED GROUND ON THE NASDAQ STOCK MARKET LOSERS LED GAINERS 1190 TO 950 ON THE BIG BOARD VOLUME EASED TO 291779510 SHARES FROM A HEAVY 361125640 WEDNESDAY I THINK THE STOCK MARKET TURNED IN A GOOD PERFORMANCE GIVEN THE BACKDROP SAID RALPH BLOCH A MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES OTHER STEEP DROPS IN THE BOND MARKET IN THE PAST SEVERAL WEEKS HAVE TRIGGERED MUCH SHARPER REACTIONS IN EQUITIES OBSERVERS TIED THE BUOYANCY IN PART TO BUYERS LURED INTO THE MARKET BY THE SHARP DROP IN MANY SHARE PRICES IN THE PAST WEEK SOME ANALYSTS SAID SELLING HAD BEATEN THE MARKET DOWN TO WHAT TECHNICAL ANALYSTS CALL AN OVERSOLD CONDITION THE SNAPBACK BEGAN WEDNESDAY WHEN THE INDUSTRIAL AVERAGE MANAGED TO TURN AROUND A MORNING LOSS OF MORE THAN 50 POINTS TO CLOSE WITH A 2251 GAIN THE STANDARD & POOR'S 500STOCK INDEX LOST 180 TO 46301 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 079 TO 25668 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 159 TO 43862 THE NASDAQ COMPOSITE INDEX THOUGH ADDED 111 TO 78458 TECHNOLOGY SHARES WHICH ARE HEAVILY WEIGHTED IN THAT INDEX WERE AMONG THE STRONGEST ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST 067 TO 46565 LEON BRAND GLOBAL MARKET SPECIALIST AT NATWEST SECURITIES SAID CONTINUED SIGNS OF STRENGTH IN THE ECONOMY HELPED TO BUOY STOCKS HE SAID MONTHLY SALES DATA RELEASED BY RETAILERS WERE ENCOURAGING AND NOTED THAT A LABOR DEPARTMENT REPORT SHOWED A LARGERTHANEXPECTED DROP IN INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE LAST WEEK THAT HELPED TO INSPIRE BUYING IN SOME ECONOMICALLY SENSITIVE ISSUES HE SAID DEERE ADDED 2 1/2 TO 87 5/8 INTERNATIONAL PAPER ROSE 1 TO 72 3/8 AND BETHLEHEM STEEL GAINED 7/8 TO 21 1/4 SHARES OF THE MAJOR CHAIN STORES WERE MOSTLY HIGHER JC PENNEY WHICH POSTED A 10 RISE IN FEBRUARY SAMESTORE SALES INCREASED 3/4 TO 55 3/4 LIMITED WHICH REPORTED FLAT SAMESTORE RECEIPTS ROSE 1/2 TO 20 BEST BUY WHICH POSTED A 42 SALES JUMP RALLIED 4 1/4 TO 58 3/4 SAMESTORE SALES INCLUDE RECEIPTS FROM SITES OPEN AT LEAST A YEAR CHRYSLER ADDED 5/8 TO 58 THE COMPANY DISCLOSED PLANS TO NEARLY DOUBLE THE AMOUNT IT WILL SPEND TO EXPAND PRODUCTION CAPACITY RAISING ITS TARGET TO 18 BILLION MEANWHILE THE AUTO MAKER SAID IT WILL KEEP OPEN AN ASSEMBLY PLANT IN ST LOUIS THAT IT HAD PLANNED TO SHUT SHARES OF THE OTHER AUTO MAKERS WERE WEAK DATA RELEASED BY THE MAJOR NORTH AMERICAN CAR PRODUCERS SHOWED FEBRUARY SALES AT A 73 MILLIONUNIT ANNUAL RATE MATCHING THE RATE POSTED FOR JANUARY FORD MOTOR EASED 1/4 TO 63 5/8 GENERAL MOTORS WAS UNCHANGED AT 60 1/2 AN INITIAL PUBLIC OFFERING OF 70 MILLION SHARES OF GLOBAL PRIVATIZATION FUND WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY THE NEW YORK STOCK EXCHANGE SUSPENDED TRADING IN THE SHARES LAST WEEK AFTER UNDERWRITERS AND ALLIANCE CAPITAL THE MANAGER OF THE FUND RESCINDED THE OFFERING BECAUSE OF AN ERROR IN THE PROSPECTUS THE PROSPECTUS OVERSTATED HOW WELL THE STOCKS OF PRIVATIZED COMPANIES HAVE PERFORMED IN RECENT YEARS YESTERDAY'S OFFERING WAS LESS THAN THE 745 MILLION SHARES ORIGINALLY SOLD TO INVESTORS RECENTLY WEAK PERSONAL COMPUTER STOCKS RALLIED AFTER UPBEAT NEWS FROM DELL COMPUTER ALTHOUGH THE AUSTIN TEXAS COMPANY'S FOURTHQUARTER EARNINGS SKIDDED TO 39 CENTS A SHARE FROM 77 CENTS A YEAR AGO THE RESULTS TOPPED EXPECTATIONS ANALYSTS WERE ALSO IMPRESSED BY IMPROVEMENT IN ITS PROFIT MARGINS DELL RALLIED 2 1/8 TO 27 ON NASDAQLEADING VOLUME OF 84 MILLION SHARES APPLE COMPUTER INCHED UP 1/8 TO 35 3/4 ON NASDAQ WHILE COMPAQ COMPUTER CLIMBED 3 5/8 TO 98 ON THE NEW YORK STOCK EXCHANGE INTEL ROSE 1 3/8 TO 68 ON NASDAQ AND ADVANCED MICRO DEVICES ADDED 1 3/4 TO 23 1/2 ON THE BIG BOARD FLUOR INCREASED 2 3/4 TO 47 1/2 AFTER THE IRVINE CALIF ENGINEERING AND CONSTRUCTION CONCERN REPORTED FIRSTQUARTER EARNINGS OF 53 CENTS A SHARE UP FROM 43 CENTS A YEAR AGO ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD FORECAST A PROFIT OF 50 CENTS FOR THE QUARTER GAP JUMPED 1 1/8 TO 46 1/8 ALSO AIDED BY STRONGERTHANFORECAST PROFIT THE SAN FRANCISCO APPAREL RETAILER HAD PROFIT OF 75 CENTS A SHARE IN THE FOURTH QUARTER UP FROM 46 CENTS A YEAR EARLIER AND ABOVE THE 70 CENTS MEAN ESTIMATE REPORTED BY IBES FIRST INTERSTATE JUMPED 1 7/8 TO 66 3/4 AFTER A PUBLISHED REPORT SAID THE LOS ANGELES BANK HAD RECEIVED A TAKEOVER PROPOSAL FROM SAN FRANCISCOBASED WELLS FARGO THE ARTICLE WHICH WAS BASED ON INFORMATION FROM UNNAMED SOURCES SAID FIRST INTERSTATE HAD REBUFFED THE OFFER THE REPORT APPEARED IN AMERICAN BANKER A TRADE PUBLICATION WELLS FARGO SHARES WERE UNCHANGED AT 137 5/8 BUT MANY OTHER BANKING ISSUES REMAINED WEAK AMID THE RISE IN MARKET INTEREST RATES AND CONCERNS ABOUT TRADING LOSSES SAID TO HAVE BEEN SUFFERED BY SOME MAJOR PLAYERS BANKERS TRUST DROPPED 2 TO 76 1/2 CITICORP FELL 1 1/4 TO 38 3/8 9403040077 940304 CONTINENTAL AIR PLANS BIG SHIFTS FROM DENVER HUB BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL CONTINENTAL AIRLINES TOLD EMPLOYEES IT PLANS TO SHIFT NEARLY 1400 WORKERS AND DOZENS OF JETS FROM ITS DENVER HUB LATER THIS YEAR SIGNALING THAT IT MIGHT REDUCE SERVICE THERE FAR MORE THAN NEXT WEEK'S 23 CUTBACK OR CLOSE THE HUB ENTIRELY THE HOUSTONBASED CARRIER HAS BEEN REALIGNING ITS ROUTES BEEFING UP ITS CALITE SHORTHAUL SERVICE IN THE SOUTHEAST AND CUTTING UNPROFITABLE OPERATIONS ELSEWHERE IN AN ATTEMPT TO REGAIN PROFITABILITY NEXT WEEK IT IS SCHEDULED TO CUT THE NUMBER OF DAILY FLIGHTS OUT OF DENVER ITS THIRDLARGEST HUB TO 108 FROM 139 A CONTINENTAL SPOKESMAN WOULDN'T COMMENT IN A TAPERECORDED MESSAGE TO EMPLOYEES LATE YESTERDAY CHIEF EXECUTIVE ROBERT R FERGUSON III SAID EVEN MORE CHANGES LIE AHEAD AND IT'S POSSIBLE THAT AT THE END OF THE PROCESS WE WILL BE CLOSING THE DENVER CREW BASE ENTIRELY CLOSING A CREW BASE NEARLY ALWAYS GOES HANDINHAND WITH SHUTTING A HUB LOSING CONTINENTAL'S HUB WOULD BE A BLOW TO THE NEW DENVER INTERNATIONAL AIRPORT WHICH WAS BUILT ON THE ASSUMPTION THAT CONTINENTAL AND UAL CORP'S UNITED AIR LINES WOULD OPERATE HUBS THERE AFTER THE AIRPORT'S OPENING WHICH THIS WEEK WAS DELAYED UNTIL MAY THE FACILITY'S ANNUAL COST WILL BE 410 MILLION JUST TO COVER BOND PAYMENTS AND OPERATIONS SEPARATELY STANDARD & POOR'S CORP PLACED THE BONDS OF THE NEW AIRPORT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS BECAUSE OF THE OPENING DELAY THE POSTPONEMENT THE THIRD FOR THE 32 BILLION AIRPORT WAS THE RESULT OF GLITCHES WITH THE COMPUTERIZED BAGGAGE SYSTEM AND OTHER TECHNICAL PROBLEMS IN A STATEMENT S&P SAID THE DELAY RAISES THE QUESTION OF HOW WELL THE CITY CAN DELIVER ON THIS PROJECT THE NEW AIRPORT'S BONDS CURRENTLY ARE RATED BY S&P AT TRIPLEB ONE OF THE LOWEST AIRPORT RATINGS THE RATING COMPANY MAINTAINS DENVER NEGOTIATED AN UNUSUAL ARRANGEMENT WITH THE AIRPORT'S AIRLINE TENANTS IN WHICH THEY WILL CONTRIBUTE 100 MILLION TOWARD THE COST OF THE DELAY OF THAT 30 MILLION WILL COVER DEBT SERVICE AND THE AIRPORT'S MAINTENANCE AND OPERATIONS BEFORE IT OPENS OF THE REMAINING 70 MILLION UAL WILL ADVANCE THE AIRPORT 45 MILLION 25 MILLION IN UNUSED BOND MONEY AND THE REST AS AN ADVANCE AGAINST UAL'S RENT BOTH SUMS WILL BE REPAID WITH INTEREST CONTINENTAL WILL CONTRIBUTE 25 MILLION IF IT CAN SUCCESSFULLY SELL BONDS IN HIS MESSAGE TO CONTINENTAL EMPLOYEES MR FERGUSON SAID THAT BETWEEN MAY AND JULY 529 PILOTS AND 863 FLIGHT ATTENDANTS WILL BE TRANSFERRED FROM DENVER TO OTHER BASES PRIMARILY NEWARK NJ GREENSBORO NC AND HOUSTON SOME PILOTS WILL BE MOVED TO HONOLULU AND LOS ANGELES DENVER INTERNATIONAL AIRPORT OFFICIALS HAD NO COMMENT ON THE S&P ACTION 9403040076 940304 HEARD ON THE STREET INHOUSE PROGRAM TRADING RISES BUT SOME SAY IT JUST SHOWS SPECULATION IS BEHIND GYRATIONS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THERE'S A FAMILIAR HAND BEHIND THE STOCK MARKET'S SUDDEN SPURTS AND PLUNGES RECENTLY INCREASING INHOUSE PROGRAM TRADING BY WALL STREET TRADING DESKS THIS IS THE SORT OF RAPID COMPUTERAIDED TRADING OF LONG LISTS OF STOCKS THAT INVESTORS WAILED ABOUT AFTER THE 1987 STOCKMARKET CRASH NEW YORK STOCK EXCHANGE DATA SHOW THAT INHOUSE OR PRINCIPAL TRADING HAS ACCOUNTED FOR AN UNUSUALLY LARGE 55 OF OVERALL PROGRAM ACTIVITY SO FAR IN 1994 COMPARED WITH 445 FOR ALL LAST YEAR SO IS THIS 1987 ALL OVER AGAIN PROBABLY NOT ACTUALLY SOME TRADERS ARGUE THAT THIS PROGRAMTRADING BINGE IS A COMFORTING THING FOR SMALL INVESTORS WHO ARE SPOOKED BY THE MARKET'S ROLLERCOASTER MOVES SUCH AS WEDNESDAY MORNING'S 50POINT DROP AND SUBSEQUENT RECOVERY TO A NEARLY 23POINT GAIN IN THE DOW JONES INDUSTRIAL AVERAGE WHY BECAUSE IT SHOWS THAT MANY OF THE MARKET'S DAILY GYRATIONS DON'T MEAN ANYTHING FUNDAMENTAL ABOUT STOCKS IT'S JUST MINUTEBYMINUTE SPECULATION BY WALL STREET FIRMS AIDED BY COMPUTERS THERE IS DEFINITELY A BIGGER IMPACT FROM PROGRAMS IN RECENT WEEKS SAYS PAUL HENNESSEY TRADING CHIEF AT BOSTON CO INSTITUTIONAL INVESTORS IN BOSTON MAJOR INVESTORS INCLUDING US HAVE LEARNED TO LIVE WITH PROGRAM TRADING BY OTHERS ALTHOUGH WE DON'T APPRECIATE IT THE VETERAN MR HENNESSEY IS A MAJOR NONPROGRAM TRADER WHO TRADES ALMOST FOUR MILLION SHARES A DAY OR 15 OF THE BIG BOARD'S TOTAL HE SAYS THAT WHILE HE CAN'T PROVE STATISTICALLY THAT PROGRAM TRADING IS MOVING PRICES MORE THAN BEFORE YOU CERTAINLY CAN FEEL IT FROM A PROFESSIONAL TRADING POINT OF VIEW WEDNESDAY WAS A PERFECT EXAMPLE IN THE PAST SUCH AS DURING LAST YEAR IT WAS UNUSUAL TO HAVE EVEN A SINGLE WEEK IN WHICH MOST OF THE PROGRAM TRADING WAS BY WALL STREET FIRMS THEMSELVES BUT NOW IT HAPPENS ROUTINELY SEVEN WEEKS IN A ROW INCLUDING A 651 INHOUSE FIGURE FOR THE MOST RECENT WEEK REPORTED THE ONE ENDED FEB 25 WHAT WE HAVE SEEN IS THAT SOME RELATIVELY SMALL PROGRAMS HAVE HAD SIGNIFICANT IMPACT SAYS LASZLO BIRINYI OF BIRINYI ASSOCIATES INC GREENWICH CONN WHO TRACKS PROGRAM TRADING CLOSELY HE SAYS THE SKITTISH STOCK MARKET HAS CREATED AIR POCKETS ON CERTAIN DAYS THAT ALLOW RELATIVELY SMALL PROGRAM TRADES THE KIND INHOUSE TRADING DESKS OFTEN MAKE TO MOVE STOCK PRICES THE TURMOIL IN FOREIGNCURRENCY MARKETS HAS GIVEN PROGRAM TRADERS ONE MORE TRIGGER TO BUY OR SELL YOU'VE HAD A MARKET IN WHICH THERE ARE CONCERNS AND FEARS AND THE PROGRAMS JUST PUSH IT ALONG MORE THAN THE MARKET'S OWN ACCORD SAYS MR BIRINYI HIS TIP FOR INVESTORS DON'T WORRY ABOUT ANY NONEWS DAY ON WHICH THE DOW JONES AVERAGE MAKES A QUICK MOVE IN ONE DIRECTION AND IS STABLE THE REST OF THE DAY THAT SUGGESTS SPECULATIVE PROGRAM TRADING WAS AT WORK AND THE MOVE WILL PROBABLY BE REVERSED THE NEXT DAY AFTER THE '87 CRASH MANY FIRMS CUT BACK ON INHOUSE PROGRAM TRADING HATING TO BE SEEN AS MODERNDAY GUNSLINGERS BUT THE CUTBACKS DIDN'T LAST FIRMS INCLUDING MORGAN STANLEY GROUP GENERAL ELECTRIC'S KIDDER PEABODY UNIT JP MORGAN AND BEAR STEARNS AS WELL AS THE US UNITS OF JAPAN'S NOMURA SECURITIES AND DAIWA SECURITIES ALL DID MILLIONS OF SHARES OF PRINCIPAL PROGRAM TRADING ON THE BIG BOARD IN THE WEEK ENDED FEB 25 SAYS BOSTON CO'S MR HENNESSEY I THINK THESE FIRMS HAVE FORGOTTEN OR THEIR CLIENTS HAVE FORGOTTEN THE IMPACT THIS HAS ON THE MARKETPLACE ONE REASON INVESTORS HAVEN'T HOWLED TOO MUCH IS THE BIG BOARD'S 50POINT COLLAR WHICH SLOWS PROGRAM TRADING WHENEVER THE DOW JONES INDUSTRIALS MOVE UP OR DOWN 50 POINTS IN A DAY THERE IS A SENSE OF SECURITY WITH THAT 50POINT COLLAR GENERALLY IT WORKS SAYS ONE BROKER THE MOSTACTIVE PROGRAM TRADER IN THE BIG BOARD'S LATEST WEEKLY STATISTICS RELEASED YESTERDAY WAS COOPER NEFF & ASSOCIATES WHICH DID ALL 141 MILLION SHARES OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT COOPER NEFF AND SUSQUEHANNA INVESTMENT GROUP ARE TWO PHILADELPHIAAREA TRADING FIRMS THAT ARE AMONG THE ONLY MAJOR PROGRAM TRADERS ASIDE FROM THE BIG BROKERAGE HOUSES AT COOPER NEFF BASED IN RADNOR PA PARTNER ROY NEFF SAYS HIS FIRM IS TRADING AT ABOUT THE SAME PACE AS LAST YEAR BUT THAT IT HAS MOVED UP ON THE LIST OF MOSTACTIVE TRADERS BECAUSE SOME OTHER PROGRAMTRADING INVESTORS HAVE BACKED AWAY IN THIS JITTERY MARKET THAT'S MADE IT EASIER FOR US HE SAYS MR NEFF ARGUES THAT MARKET MOVES LIKE WEDNESDAY'S ARE CAUSED BY INVESTORS' CAUTIOUS BUYING PATTERNS NOT JUST PROGRAM TRADING IN A JITTERY MARKET WHERE PEOPLE DON'T WANT TO LAY THEIR MONEY ON THE LINE UNTIL THEY GET MORE INFORMATION IT MAKES SENSE THAT THE MARKET HAS TO GO DOWN MORE BEFORE SOMEONE WANTS TO BUY MR NEFF SAYS 9403040075 940304 FOREIGN EXCHANGE DOLLAR FELL AGAINST YEN ON ESCALATION OF TRADE FRICTIONS BETWEEN US JAPAN BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL AGAINST THE YEN YESTERDAY AMID ESCALATING TRADE FRICTIONS BETWEEN THE US AND JAPAN AS PRESIDENT CLINTON REACTIVATED ONE OF THE MOST FEARED WEAPONS IN THE US TRADEWAR ARSENAL BUT THE DOLLAR ROSE AGAINST THE MARK ON BULLISH US ECONOMIC DATA AFTER AN EARLIER STUMBLE OVER THE BUNDESBANK'S DECISION TO LEAVE KEY INTEREST RATES UNCHANGED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10395 YEN OFF A BIT FROM 10410 YEN LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 17105 MARKS UP FROM 17040 MARKS STERLING WAS TRADING AT 14965 DOWN SLIGHTLY FROM 14972 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10427 YEN AND AT 17125 MARKS MR CLINTON REAUTHORIZED FOR A TWOYEAR PERIOD THE SUPER 301 PORTION OF US TRADE LAW THAT ALLOWS THE US TO RETALIATE AGAINST NATIONS DEEMED TO ENGAGE IN UNFAIR TRADE PRACTICES THE EARLIEST POSSIBLE DATE FOR US ACTION WOULD BE OCT 21 UNDER THE TERMS OF MR CLINTON'S EXECUTIVE ORDER ANY NEGATIVE NEWS ON USJAPAN TRADE FRICTION IS BEING TAKEN BY THE MARKET AS A DOLLARDOWN PLAY SAID ERIK DE POL CHIEF TRADER AT THE ROYAL BANK OF SCOTLAND IN NEW YORK HE ADDED THAT THE MARKET HAS DISCOUNTED RECENT PROTESTS BY US OFFICIALS THAT ANY TRADE ACTIONS AGAINST JAPAN ARE UNRELATED TO DOLLARYEN MOVEMENTS WHENEVER THERE ARE TRADE FRICTIONS THE MARKET SEES THE ADMINISTRATION KEEPING PRESSURE ON THE DOLLAR TO FORCE A LOWERING OF JAPANESE TRADE BARRIERS MR DE POL SAID ADDING THE BRINKSMANSHIP BY CLINTON KEEPS FEARS IN THE MARKET CAUSING THE DOLLAR TO SHOW ITS WEAKER SIDE THE ONLY THING THAT CAN TURN THE DOLLAR AROUND AT THIS POINT ARE CONCESSIONS FROM THE JAPANESE THAT THE US WOULD FIND ACCEPTABLE MR DE POL SAID THE DOLLAR FELL TO AN INTRADAY LOW OF 10340 YEN IN THE MIDDLE OF NORTH AMERICAN TRADING ON THE REPORTS THAT MR CLINTON HAD SIGNED THE EXECUTIVE ORDER BUT TRADERS NOTED THE DOLLAR DIDN'T FALL AS LOW AS THE 10302YEN LEVEL THAT IT HIT WEDNESDAY ON THE EARLY REPORTS THAT THE SUPER 301 AUTHORIZATION WAS IMMINENT TRADERS SAID WIDESPREAD SENTIMENT THAT THE BANK OF JAPAN WAS PREPARED TO DEFEND THE DOLLAR ABOVE 103 YEN KEPT THE US CURRENCY WELLSUPPORTED THE DOLLAR REVERSED COURSE SOMEWHAT ON COMMENTS BY US TRADE REPRESENTATIVE MICKEY KANTOR WHO CAUTIONED THAT NO ONE SHOULD FEAR A TRADE WAR WITH JAPAN AND BY TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS LAWRENCE SUMMERS WHO SAID HE DOESN'T ANTICIPATE A CYCLE OF ESCALATION THE DOLLAR MEANWHILE CLAWED HIGHER AGAINST THE MARK AFTER INITIALLY BEING DRAGGED DOWN ON NEWS THAT THE BUNDESBANK DECIDED TO LEAVE KEY INTEREST RATES UNCHANGED AT YESTERDAY'S BIWEEKLY MEETING OF THE CENTRAL BANK'S POLICYMAKING COUNCIL THE BUNDESBANK'S DECISION FOLLOWED NEWS WEDNESDAY THAT GERMANY'S M3 MONEY SUPPLY THE CENTRAL BANK'S FAVORITE INDICATOR OF INFLATIONARY PRESSURES ROSE AN UNEXPECTED 206 CAUSING PANIC SELLING OF GERMAN BONDS DEALERS SAID THE MARK WAS HELPED BRIEFLY BY THE BUNDESBANK'S ANNOUNCEMENT YESTERDAY WHICH SIGNALED THAT GERMAN RATES ARE LIKELY TO REMAIN FIRM IN THE NEAR TERM BUT THE DOLLAR THEN LEAPT HIGHER ON POSITIVE US DATA ABOUT EMPLOYMENT AND FACTORY ORDERS THAT BODED WELL FOR THE US ECONOMIC RECOVERY SAID JOSEPH FRANCOMANO A TRADER FOR DAIICHI KANGYO BANK LTD IN NEW YORK 9403040074 940304 BUSINESS BRIEF TRELLEBORG AB STAKE IN GERMANY'S PHOENIX IS SOLD FOR ABOUT 47 MILLION SWEDISH INDUSTRIAL GROUP TRELLEBORG AB ACTIVE IN METALS MINING BUILDING MATERIALS AND RUBBER SOLD ITS 20 STAKE IN PHOENIX AG A GERMAN RUBBER COMPANY TRELLEBORG PUT THE MARKET VALUE OF THE 300000 PHOENIX SHARES PLACED WITH INSTITUTIONAL INVESTORS AT ROUGHLY 80 MILLION MARKS 47 MILLION THE MOVE IS ENTIRELY IN LINE WITH OUR STRATEGY OF REDUCING NET INDEBTEDNESS AND CREATING ROOM FOR VENTURES WITHIN WHOLLY OWNED CORE OPERATIONS SAID KJELL NILSSON PRESIDENT HE SAID THE DEPRECIATION OF THE SWEDISH KRONA HAD GIVEN THE GROUP MANY EXCITING POSSIBILITIES FOR EXPANSION IN SWEDEN THE TECHNICAL AND COMMERCIAL COOPERATION AGREEMENT BETWEEN TRELLEBORG AND PHOENIX DATING TO 1991 HAS BEEN EXTENDED UNTIL 1996 FREDRIK ARP HEAD OF TRELLEBORG INDUSTRIER THE GROUP'S RUBBER UNIT SAID WE SEE GOOD CHANCES FOR DEEPENING COOPERATION EVEN WITHOUT PART OWNERSHIP 9403040073 940304 MARKETING BRIEF NOTED NEWS NEWS NEWS CORP SYDNEY NAMED ADRIAN ZACKHEIM 42 TO THE NEW POST OF VICE PRESIDENT PUBLISHING DIRECTOR OF HARPERBUSINESS AN IMPRINT OF THE NEW YORK PUBLISHING HOUSE HARPERCOLLINS PUBLISHERS NEWS CORP'S FOX CHILDREN'S NETWORK WHICH BROADCASTS 19 HOURS OF CHILDREN'S TV PROGRAMMING WEEKLY SAID IT WILL LAUNCH FOX KIDS RADIO ON MAY 8 NETWORK GAINS PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC SAID THEY SIGNED FIVE MORE AFFILIATES FOR THE PARAMOUNT NETWORK A BROADCAST NETWORK THEY PLAN TO LAUNCH IN JANUARY 1995 WHO'S NEWS FORBES INC NAMED GREGORY J ZORTHIAN FORMER GENERAL MANAGER OF TIME MAGAZINE TO THE NEW POSITION OF VICE PRESIDENT OF BUSINESS DEVELOPMENT SONY CORP'S COLUMBIA PICTURES MOVIE STUDIO NAMED SIDNEY GANIS VICE CHAIRMAN AND LISA HENSON PRESIDENT MR GANIS 51 HAD BEEN EXECUTIVE VICE PRESIDENT AND MS HENSON 33 PRESIDENT OF PRODUCTION 9403040072 940304 BUSINESS BRIEF ALCAN ALUMINIUM LTD CS FIRST BOSTON HIRED TO ADVISE ON STAKE IN UNIT ALCAN ALUMINIUM LTD SAID IT HIRED CS FIRST BOSTON INC TO HELP REVIEW OPTIONS FOR ITS 73 STAKE IN ALCAN AUSTRALIA LTD THE MONTREAL ALUMINUM MAKER SAID IT ISN'T CONSIDERING A BUYOUT OF MINORITY SHAREHOLDERS IN THE UNIT WHICH IS PUBLICLY TRADED IN AUSTRALIA INVOLVEMENT IN THE AUSTRALIAN DOMESTIC ALUMINUM MARKET ISN'T A STRATEGIC PRIORITY ALCAN ALUMINIUM SAID ALCAN AUSTRALIA REPORTED NET INCOME OF 772000 AUSTRALIAN DOLLARS US545000 ON A6365 MILLION IN SALES FOR 1993 IT HAD 2523 EMPLOYEES AS OF DEC 31 ITS ONE ALUMINUM SMELTER HAS 150000 METRIC TONS OF ANNUAL CAPACITY OR ABOUT 9 OF ALCAN'S GLOBAL CAPACITY THE DISCLOSURE CAME A DAY AFTER ALCAN ALUMINIUM ANNOUNCED IT MAY SELL ITS NORTH AMERICAN BUILDINGPRODUCTS DIVISIONS CS FIRST BOSTON INC IS A UNIT OF CS HOLDING 9403040071 940304 WHO'S NEWS BROWNINGFERRIS INDUSTRIES INC BROWNINGFERRIS INDUSTRIES INC HOUSTON THIS WASTEHANDLING CONCERN NAMED TWO DIRECTORS BOOSTING BOARD MEMBERSHIP TO 10 THE NEW MEMBERS ARE ULRICH OTTO 44YEAROLD MANAGING DIRECTOR OF OTTO WASTE SERVICES A GERMAN WASTE CONCERN IN WHICH BROWNINGFERRIS RECENTLY ACQUIRED A 50 STAKE AND MARC J SHAPIRO 46 CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHEMICAL BANKING CORP'S TEXAS COMMERCE BANCSHARES UNIT 9403040070 940304 LETTERS TO THE EDITOR I'M ON DOCTORS' SIDE FORGET THAT QUOTE ENOUGH ANGUISHED REACTIONS FROM PHYSICIANS HAVE REACHED ME AND THE WALL STREET JOURNAL LETTERS TO THE EDITOR FEB 11 CONCERNING A PROVOCATIVE QUOTE ATTRIBUTED TO ME IN A JAN 14 ARTICLE THAT I MUST SET THE RECORD STRAIGHT THE CONTROVERSIAL QUOTE THAT ELICITED THE ANGER DOES NOT REFLECT MY OWN VIEW ON PHYSICIANS AT ALL THE JOURNAL'S REPORTER HAD ASKED ME A SOPHISTICATED QUESTION ON WHAT THEORY OF JUSTICE POLITICIANS COULD SINGLE OUT A PARTICULAR PROFESSION FOR TAXATION I RESPONDED THAT TO JUSTIFY THE STRATEGY THE POLITICIANS MUST CONSIDER THAT PROFESSION OVERPAID RELATIVELY TO WHAT ITS MEMBERS WOULD EARN IN A FREELY COMPETITIVE MARKET I THEN SPECULATED THAT POLITICIANS MAY DRAW THAT INFERENCE FROM THE FACT THAT EVERY YEAR ABOUT TWICE AS MANY QUALIFIED AMERICAN YOUNGSTERS APPLY TO AMERICAN MEDICAL SCHOOLS THAN ARE PERMITTED TO ENTER AND THAT STRICT LICENSURE LAWS FURTHER PROTECT THE PROFESSION FROM COMPETITION EG FROM NURSE PRACTITIONERS I TOLD THE REPORTER THAT POLITICIANS NOW SEEM TO BE SAYING TO PHYSICIANS THAT YOU MAY KEEP YOUR GOOD INCOMES AND YOUR MERCEDES CARS BUT YOU WILL HAVE TO TREAT MORE PATIENTS FOR THAT INCOME WE'LL MAKE SURE OF IT BY TAXING AWAY SOME OF THAT INCOME AND THEN GIVING IT BACK TO YOU IF YOU TAKE CARE OF THE NOW UNDERSERVED I MENTIONED FURTHER THAT THIS IS A FORM OF FORCED PRODUCTIVITY GAIN ANALOGOUS TO TELLING FACTORY WORKERS YOU MUST WORK A HALFHOUR PAST 5 PM FOR THE SAME PAY FROM YEARS OF EMPIRICAL RESEARCH ON MEDICAL PRACTICES I KNOW THAT PHYSICIANS WORK THE LONG HOURS AN AVERAGE OF ABOUT 60 HOURS A WEEK THAT ARE TYPICAL OF ALL AMBITIOUS PROFESSIONALS IN BOTH THE PRIVATE AND PUBLIC SECTORS IN THE CASE OF PHYSICIANS HOWEVER THOSE LONG HOURS ARE IRREGULAR AND OFTEN UNUSUALLY TAXING HAVING LONG MARVELED AT THE ENORMOUSLY HIGH INCOMES THAT CAN QUITE EASILY BE EARNED IN FINANCE IN JURISPRUDENCE AND IN MANAGEMENT CONSULTING I WOULD BE THE LAST TO BEGRUDGE PHYSICIANS THEIR CURRENT INCOME NOW AN AVERAGE OF CLOSE TO 180000 A YEAR IN SPITE OF THE TROUBLESOME BARRIERS TO ENTRY INTO THE MEDICAL PROFESSION INDEED I HAVE OFTEN TESTIFIED BEFORE CONGRESS THAT PICKING ON PHYSICIAN INCOMES AS A COSTCONTAINMENT STRATEGY WILL NEVER YIELD MUCH IN THE WAY OF SAVINGS AS THOSE INCOMES REPRESENT ONLY ABOUT 12 OF TOTAL HEALTH SPENDING FINALLY I SEE NOTHING AMISS IN PHYSICIANS DRIVING FINE AUTOMOBILES SHOULD THEY FANCY THEM AT THIS TIME AMERICAN PHYSICIANS ARE FRIGHTENED BY THE PROSPECT OF MANAGED COMPETITION WHICH AS THE JOURNAL'S HILARY STOUT HAS ASTUTELY OBSERVED FEB 10 MARCHES ON REGARDLESS OF GOVERNMENT POLICY UNDER THE CIRCUMSTANCES I WOULD BE LOATH TO IRRITATE THE PROFESSION FURTHER 9403040069 940304 WHO'S NEWS JENNY CRAIG OFFICER QUITS DEL MAR CALIF JENNY CRAIG INC SAID ALBERT J DIMARCO STEPPED DOWN AS PRESIDENT AND CHIEF OPERATING OFFICER AFTER THREE MONTHS AT THE WEIGHTLOSS CONCERN CITING PERSONAL REASONS MR DIMARCO 51 YEARS OLD WAS ONCE CHAIRMAN AND CHIEF EXECUTIVE OF RIVAL NUTRI/SYSTEM INC ELLEN DESTRAY 42 JENNY CRAIG'S SENIOR VICE PRESIDENTOPERATIONS WAS PROMOTED TO CHIEF OPERATING OFFICER THE PRESIDENT POST WASN'T FILLED 9403040068 940304 BUSINESS BRIEF SUNGLASS HUT INTERNATIONAL INC FISCAL FOURTHQUARTER NET IS EXPECTED TO RISE BY 57 SUNGLASS HUT INTERNATIONAL INC AIDED BY EXPANSION AND INCREASED SALES EXPECTS TO REPORT A 57 RISE IN FISCAL FOURTHPERIOD PROFIT CHIEF EXECUTIVE JACK CHADSEY SAID HE SAID THE COMPANY SHOULD EARN BETWEEN 11 MILLION AND 13 MILLION OR 10 CENTS AND 12 CENTS A SHARE IN THE QUARTER COMPARED WITH 698000 OR SEVEN CENTS A SHARE A YEAR AGO THE COMPANY A MIAMI SUNGLASS SPECIALTY RETAILER EXPECTS TO REPORT SALES AT STORES OPEN FOR MORE THAN A YEAR INCREASED 14 FOR THE QUARTER COMPARED WITH 1992'S 12 RISE LAST YEAR SUNGLASS OPENED STORES AND KIOSKS IN 109 LOCATIONS AND ENTERED EUROPE WITH NINE STORES IN BRITAIN FOR THE YEAR SUNGLASS HUT EXPECTS TO REPORT EARNINGS OF BETWEEN 87 MILLION AND 9 MILLION OR 82 CENTS AND 84 CENTS A SHARE COMPARED WITH 53 MILLION OR 50 CENTS A SHARE A YEAR EARLIER MR CHADSEY SAID 9403040067 940304 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AIR METHODS CORP A SHELF OFFERING OF AN INITIAL ONE MILLION PREFERRED SHARES WITH AN OVERALLOTMENT OPTION FOR 150000 ADDITIONAL SHARES VIA PAULSON INVESTMENT CO COLE TAYLOR FINANCIAL GROUP INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES AND UP TO 25 MILLION OF SUBORDINATED NOTES WITH AN OVERALLOTMENT OPTION FOR 300000 ADDITIONAL SHARES VIA CHICAGO CORP PIPER JAFFRAY INC AND FOXPITT KELTON INC GRUPO EMBOTELLADOR DE MEXICO SA AN INITIAL OFFERING OF NINE MILLION GLOBAL PARTICIPATION SHARES EACH REPRESENTING TWO ORDINARY PARTICIPATION CERTIFICATES WITH AN OVERALLOTMENT OPTION FOR 27 MILLION ADDITIONAL PARTICIPATION CERTIFICATES VIA GOLDMAN SACHS & CO MERRILL LYNCH & CO AND OPPENHEIMER & CO RADICA GAMES LTD AN INITIAL OFFERING OF 7141000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 1071150 ADDITIONAL SHARES VIA MERRILL LYNCH AND MONTGOMERY SECURITIES STERLING FINANCIAL CORP AN OFFERING OF ONE MILLION SHARES OF SERIES A CUMULATIVE CONVERTIBLE PREFERRED SHARES WITH AN OVERALLOTMENT OPTION FOR 150000 SHARES 9403040066 940304 MICHAELS STORES PLANS ACQUISITION IRVING TEXAS MICHAELS STORES INC SAID IT AGREED TO BUY OREGON CRAFT & FLORAL SUPPLY CO AND CALIFORNIABASED H&H CRAFT & FLORAL CO FOR 197 MILLION IN STOCK MICHAELS AN ARTS AND CRAFTS RETAILER SAID OREGON CRAFT AND H&H CRAFT OPERATE EIGHT STORES EACH 9403040065 940304 BUSINESS BRIEF BROOKE GROUP LTD CASH PORTION OF PACT TO SELL NEW VALLEY STAKE IS REVISED BROOKE GROUP LTD MIAMI SAID AN AGREEMENT TO EXCHANGE ITS STAKE IN NEW VALLEY CORP FOR 89 MILLION OF DEBT AND 22 MILLION OF CASH WAS REVISED AND EXTENDED TO SEPT 30 UNDER THE REVISED AGREEMENT THE DEBT PORTION WOULD REMAIN THE SAME INSTEAD OF THE CASH PAYMENTS THE PARTICIPATING NOTEHOLDERS WILL EXTEND ADDITIONAL LOANS TO A BROOKE GROUP SUBSIDIARY AND FORGIVE ALL LOANS AND OTHER OBLIGATIONS TOTALING ABOUT 22 MILLION IF THE EXCHANGE OFFER CLOSES BY THE END OF THE EXTENSION 9403040064 940304 WALDEN RESIDENTIAL PROPERTIES DALLAS WALDEN RESIDENTIAL PROPERTIES INC SAID IT AGREED TO ACQUIRE NINE GARDENAPARTMENT COMPLEXES IN TEXAS AND OKLAHOMA FOR ABOUT 71 MILLION THE PROPERTIES CONSIST OF 2694 APARTMENTS THE SELLER OR SELLERS WEREN'T DISCLOSED THE ACQUISITION WILL INCREASE BY 42 THE NUMBER OF APARTMENTS OWNED BY WALDEN WHICH WENT PUBLIC LAST FALL 9403040063 940304 BUSINESS BRIEF NATIONAL WESTMINSTER BANK PLC UNIT TO MOVE 1300 POSITIONS FROM THE NEW YORK AREA NATIONAL WESTMINSTER BANCORP SAID IT WILL MOVE 1300 BACKOFFICE JOBS FROM THE NEW YORK AREA TO SCRANTON PA TO CUT COSTS THE BANKHOLDING COMPANY ALSO SAYS IT WILL FARM OUT ANOTHER 275 DATAPROCESSING JOBS TO GENERAL MOTORS CORP'S EDS NATIONAL WESTMINSTER A UNIT OF BRITAIN'S NATIONAL WESTMINSTER BANK PLC SAID THE MOVES WILL SAVE 17 MILLION ANNUALLY AFTER TWO YEARS AND 25 MILLION A YEAR AFTER 10 YEARS THE COMPANY SAID IT WILL TAKE A 25 MILLION RESTRUCTURING CHARGE IN THE FIRST QUARTER TO PAY FOR THE MOVES POSITIONS TO BE MOVED INCLUDE 700 IN MELVILLE NY 295 IN LOWER MANHATTAN AND 195 IN BRIDGEWATER NJ CURRENT EMPLOYEES WILL BE OFFERED JOBS IN SCRANTON NATIONAL WESTMINSTER WITH ASSETS OF 24 BILLION EMPLOYS ABOUT 8500 PEOPLE IN THE NEW YORK AREA 9403040062 940304 BUSINESS BRIEF GNI GROUP INC LOSS IN FISCAL 3RD QUARTER IS SEEN ON SLIDING REVENUE GNI GROUP INC HOUSTON SAID IT EXPECTS TO REPORT A SUBSTANTIAL LOSS ON A DECLINE IN REVENUE FOR THE FISCAL THIRD QUARTER ENDING MARCH 31 GNI SAID REVENUE IS PROJECTED AT 5 MILLION TO 55 MILLION THE ENVIRONMENTAL AND RECYCLING COMPANY HAD NET INCOME 549311 OR 10 CENTS A SHARE ON REVENUE OF 59 MILLION IN THE YEAREARLIER QUARTER GNI SAID IT ALSO EXPECTS A FOURTHQUARTER LOSS COMPARED WITH EARNINGS OF 769638 OR 12 CENTS A SHARE ON REVENUE OF 63 MILLION IN THE 1993 FOURTH QUARTER RESULTS SHOULD IMPROVE IN THE FIRST TWO QUARTERS OF 1995 THE COMPANY SAID THE COMPANY HAD A LOSS OF 63346 OR ONE CENT A SHARE ON REVENUE OF 52 MILLION IN THE 1994 FIRST QUARTER AND A LOSS OF 156367 OR TWO CENTS A SHARE ON REVENUE OF 51 MILLION IN THE SECOND QUARTER CARL V RUSH JR PRESIDENT AND CHIEF EXECUTIVE SAID GNI WILL ADDRESS DIFFICULTIES IN ITS CHEMICAL RECOVERY AND PROCESSING OPERATION WITH PERSONNEL REDUCTION REORGANIZATION AND RESTRUCTURING 9403040061 940304 WHO'S NEWS STONE ENERGY CORP STONE ENERGY CORP LAFAYETTE LA D PETER CANTY FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT OF THIS OIL AND NATURAL GAS COMPANY AND WILL REMAIN CHIEF OPERATING OFFICER MR CANTY 46 YEARS OLD SUCCEEDS JOE R KLUTTS 59 WHO WAS NAMED VICE CHAIRMAN 9403040060 940303 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9403040059 940304 WHO'S NEWS FREMONT GENERAL CORP FREMONT GENERAL CORP SANTA MONICA CALIF WAYNE R BAILEY 39YEAROLD VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER WAS NAMED TO SENIOR VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER RAYMOND G MEYERS 47 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER A NEW POST AT THIS INSURANCE AND FINANCIAL SERVICES HOLDING CONCERN HE WAS VICE PRESIDENT PERSONNEL AND ADMINISTRATION 9403040058 940304 PEPPERAND SALT AS TO WHETHER IT HAS NOW DEPARTED I CREATE A NEWS BLACKOUT OF WHAT GOES ON ABOUT BOING BACK TO THE WORLD ANEW CAN NOW SUE FOR WRONGFUL HIRING 9403040057 940304 WHO'S NEWS PHYSICIANS INSURANCE CO OF OHIO PHYSICIANS INSURANCE CO OF OHIO PICKERINGTON OHIO RICHARD H SHARPE 38 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS INSURANCE CONCERN'S AMERICAN PHYSICIANS LIFE INSURANCE CO UNIT WAS NAMED CHIEF OPERATING OFFICER OF THE PARENT COMPANY THE APPOINTMENT IS EFFECTIVE IMMEDIATELY MR SHARPE FILLS A POSITION VACATED SEVERAL YEARS AGO HE WILL BE RESPONSIBLE FOR THE DAILY OPERATIONS OF THE COMPANY AND ALL SENIOR MANAGEMENT WILL REPORT TO HIM MR SHARPE WILL CONTINUE AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE AMERICAN PHYSICIANS LIFE UNIT 9403040056 940304 INTERNATIONAL BRIEF LADBROKE PLC LEISURE FIRM'S PRETAX PROFIT SURGED TO 93 MILLION IN '93 LADBROKE PLC SAID 1993 PRETAX PROFIT SURGED TO 621 MILLION 93 MILLION FROM 52 MILLION SALES GAINED 25 TO 427 BILLION FROM 417 BILLION THE BRITISH LEISURE CONCERN SAID PROFIT WOULD HAVE TOTALED 1175 MILLION BUT FOR A 554 MILLION EXCEPTIONAL CHARGE RELATING TO PROPERTY WRITEDOWNS AND REORGANIZATION COSTS PROFIT EXCLUDING EXCEPTIONAL CHARGES FELL SHORT OF THE 120 MILLION TO 150 MILLION ANALYSTS WERE EXPECTING THE CUT IN THE FULLYEAR DIVIDEND TO 60 PENCE A SHARE WAS FORECAST HOWEVER WITH SOME ANALYSTS PREDICTING A PAYOUT AS LOW AS 55 PENCE A SHARE 9403040055 940304 TECHNOLOGY & HEALTH IN SETBACK FOR CALGENE FDA POSTPONES SAFETY HEARING ON GENESPLICED TOMATO BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL CALGENE INC GOT MORE BAD NEWS ABOUT ITS GENETICALLY ENGINEERED TOMATO WHEN THE FOOD AND DRUG ADMINISTRATION POSTPONED NEXT WEEK'S LONGAWAITED HEARING ON THE PRODUCT CALGENE'S CHIEF EXECUTIVE OFFICER ROGER SALQUIST SAID THE AGENCY NOTIFIED HIM THAT IT WAS DEFERRING THE HEARING ORIGINALLY SCHEDULED FOR MARCH 9 AND 10 BECAUSE IT WAS UNABLE TO ASSEMBLE THE NECESSARY EXPERTS TO EVALUATE THE SAFETY OF THE FLAVR SAVR TOMATO MR SALQUIST SAID HE DOESN'T KNOW WHEN THE FDA HEARING WILL BE RESCHEDULED HE HAD PREDICTED THAT THE TOMATO WOULD BE CLEARED FOR MARKETING LAST FALL AND HE EXPRESSED IMPATIENCE WITH FDA DELAYS AFTER A THREEYEAR DIALOGUE BETWEEN THE COMPANY AND THE AGENCY WE ENVISIONED NOT SITTING AROUND WAITING FOR THE FDA TO GET OFF THEIR BUTTS HE SAID IN AN INTERVIEW I FULLY EXPECTED WE'D HAVE THIS THING CONCLUDED IN OCTOBER OR NOVEMBER AT THE LATEST IN WASHINGTON AN FDA SPOKESMAN TERMED THE MEETING'S DELAY A MINOR LOGISTICAL PROBLEM WHICH WE ARE WORKING TO RESOLVE CALGENE'S SCIENTISTS ENGINEERED THE FLAVR SAVR TOMATO TO KNOCK OUT THE GENE THAT MAKES TOMATOES ROT THIS WOULD ENABLE GROWERS TO SHIP VINERIPENED TOMATOES RATHER THAN PICKING THEM HARD AND GREEN WHILE CALGENE HAS ASSERTED THAT THE PRODUCT IS COMPLETELY SAFE CRITICS SUCH AS BIOTECHNOLOGY GADFLY JEREMY RIFKIN AND SOME RESTAURANT CHEFS HAVE OPPOSED IT THE FDA'S DELAY WAS THE SECOND BRUISING THE TOMATO TOOK YESTERDAY EARLIER CITING HEAVY OPERATING LOSSES CALGENE SAID IT WAS TEMPORARILY SCALING BACK OPERATION OF ITS CALGENE FRESH SUBSIDIARY AND CURTAILING A TESTMARKETING PROGRAM OF VINERIPENED TOMATOES CALGENE FRESH AND THE TEST WERE ESTABLISHED TO CREATE AN INFRASTRUCTURE FOR THE EVENTUAL MARKETING OF THE FLAVR SAVR MR SALQUIST DEMURRED AS TO HOW MANY EMPLOYEES WOULD BE FURLOUGHED IN THE MOVE BUT HE ADDED THAT CALGENE FRESH WOULD MOVE FORWARD WITH A STAFF OF ABOUT 70 DOWN FROM A ONETIME STAFFING HIGH OF ABOUT 150 AFTER THE FIRST ANNOUNCEMENT YESTERDAY CALGENE'S SHARES FELL 1 OR 77 TO 12 IN NASDAQ STOCK MARKET TRADING WORD OF THE FDA'S MOVE CAME AFTER THE CLOSE OF TRADING BLAMING REGULATORY DELAYS AND THE HIGH COST OF ITS TOMATO PROGRAM CALGENE RECENTLY PREDICTED THAT ITS LOSS FOR THE YEAR ENDING JUNE 30 WILL EXCEED ITS FISCAL 1993 LOSS OF 256 MILLION OR 113 A SHARE CALGENE WHICH IS BASED IN DAVIS CALIF ALSO SAID LAST WEEK THAT IT HAD REACHED AN AGREEMENT WITH ZENECA AVP AND CAMPBELL SOUP CO UNDER WHICH CALGENE WILL RETAIN RIGHTS TO MARKET FRESH FLAVR SAVR TOMATOES WHILE ITS TWO MARKETING PARTNERS SHARE RIGHTS TO MARKET PROCESSED TOMATOES DESPITE HIS FRUSTRATION MR SALQUIST SAID HE IS A BORN OPTIMIST AND REMAINS CONFIDENT THAT THE PRODUCT EVENTUALLY WILL BE CLEARED FOR MARKET BY REGULATORS 9403040054 940304 ENTREPRENEUR JOINS FIGHT OVER NEW EPA RULES BY BENJAMIN A HOLDEN AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL TUCSON ARIZ FOR CHESTER C DAVENPORT WHO IS ALREADY WORTH NEARLY 90 MILLION THE BEST MAY LIE AHEAD TOUGH NEW FEDERAL RULES ON AUTO POLLUTION COULD MAKE MR DAVENPORT FOUNDER OF THE NATION'S BIGGEST AUTOEMISSION TESTING COMPANY EVEN RICHER THE RULES ESSENTIALLY FORCE EVERY STATE TO USE SPECIALIZED TESTING COMPANIES SUCH AS MR DAVENPORT'S ENVIROTEST SYSTEMS CORP BUT ANGRY OWNERS OF SERVICE STATIONS AND AUTO REPAIR SHOPS MAY BLOCK MR DAVENPORT'S PATH THOUSANDS OF THESE SMALLBUSINESS OWNERS WHO NOW CONDUCT EMISSIONS TESTING ARE OUTRAGED THAT THEY HAVE BEEN EXCLUDED UNDER THE ENVIRONMENTAL PROTECTION AGENCY RULES THEIR OUTCRY HAS HELPED PERSUADE CALIFORNIA OFFICIALS TO DEFY THE FEDERAL MANDATE THIS CALIFORNIA REBELLION THREATENS TO UNDERMINE EPA EFFORTS TO WIN COMPLIANCE FROM OTHER STATES AND COULD SERIOUSLY DIM ENVIROTEST'S PROSPECTS THOUGH MR DAVENPORT DENIGRATES HIS OPPONENTS AS GARAGE GUYS HE ISN'T TAKING THE PROTEST LIGHTLY THE EXECUTIVE WHO IS ONE OF THE NATION'S WEALTHIEST AFRICANAMERICAN ENTREPRENEURS IS PERSONALLY LOBBYING STATE OFFICIALS IN CALIFORNIA AND ELSEWHERE ENVIROTEST HAS ALSO JOINED THE EPA IN FIGHTING A SUIT TO OVERTURN THE RULES BROUGHT BY REPAIRSHOP TRADE GROUPS CRITICS CONTEND THAT MR DAVENPORT HAS AN UNFAIR ADVANTAGE BECAUSE OF THE WAY THE NEW EPA RULES ARE WRITTEN FOR ALL PRACTICAL PURPOSES THE EPA HAS BECOME ENVIROTEST'S AGENT CHARGES JIM DASKAL GENERAL COUNSEL OF THE SERVICE STATION DEALERS OF AMERICA A TRADE GROUP INVOLVED IN THE SUIT EPA OFFICIALS SAY THEIR SOLE AIM IS TO HELP CLEAN UP THE AIR IN A WAY CRITICS' COMPLAINTS ABOUT MR DAVENPORT REPRESENT A BACKHANDED COMPLIMENT THE ENTREPRENEUR HAS MADE HIMSELF A CONSUMMATE INSIDER DESPITE BLACK AMERICANS' TRADITIONAL EXCLUSION FROM THE HALLS OF MONEY AND POWER IN 1966 MR DAVENPORT WAS THE FIRST BLACK TO GRADUATE FROM THE UNIVERSITY OF GEORGIA LAW SCHOOL AFTER GRADUATION HE BECAME A TAX LAWYER WITH THE US JUSTICE DEPARTMENT AND THEN WORKED FOR CALIFORNIA SEN ALAN CRANSTON AS A BANKING AIDE HE ALSO BEGAN THE INTENSE NETWORKING THAT HELPED HIM BUILD THE FOUNDATION FOR A BUSINESS EMPIRE IN THE EARLY 1970S MR DAVENPORT BECAME A PROTEGE OF RAY LAPIN FORMER CHAIRMAN OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WHEN MR LAPIN BEGAN A SAN FRANCISCO MORTGAGE BANK THEN AT AGE 36 HE BECAME A TRANSPORTATION UNDERSECRETARY IN THE CARTER ADMINISTRATION SOON AFTER MR DAVENPORT SAYS HE MADE HIS FIRST 1 MILLION BY INVESTING IN COMMERCIAL REALESTATE PARTNERSHIPS IN WASHINGTON WITH DEVELOPER AND PUBLISHER MORT ZUCKERMAN MR ZUCKERMAN SAYS HE WOULD LIKE TO DO MORE DEALS WITH MR DAVENPORT BECAUSE HE KNOWS WHO TO DEAL WITH AND HOW TO DEAL WITH PEOPLE WHEN HE'S INVOLVED IN A BUSINESS VENTURE IN 1988 MR DAVENPORT AND A PARTNER CORPORATEFINANCE EXECUTIVE SLIVY C EDMONDS SET UP AN INVESTMENT FUND TO BUY COMPANIES BASED ON OPPORTUNITIES CREATED BY PENDING FEDERAL LEGISLATION THEY TARGETED COMPANIES WITH ANNUAL REVENUE OF BETWEEN 50 MILLION AND 250 MILLION TWO YEARS LATER THEY FORMED ENVIROTEST TO BUY THE HAMILTON TEST SYSTEMS DIVISION OF UNITED TECHNOLOGIES CORP FOR 51 MILLION MR DAVENPORT SAYS THAT HE AND MS EDMONDS BORROWED MOST OF THE MONEY FOR THE PURCHASE FROM A DUTCH BANK A FEW MONTHS LATER TAPPING HIS NETWORK OF WALL STREET CONTACTS THE ENTREPRENEUR BEGAN LINING UP FINANCING TO ACQUIRE A SECOND MAJOR AUTOEMISSIONS TESTING CONCERN FOR 835 MILLION MR DAVENPORT TOOK A BIG RISK IN MAKING THE TWO ACQUISITIONS HE COMPLETED THE PURCHASES BEFORE THE EPA HAD FINISHED DRAFTING ITS NEW AUTOEMISSIONS TESTING RULES IF THE REGULATIONS HADN'T FAVORED ENVIROTEST MR DAVENPORT MIGHT HAVE LOST HIS NEARLY 2 MILLION INVESTMENT IN THE COMPANY BUT AFTER YEARS OF WORKING IN WASHINGTON HE SAYS HE FELT PRETTY CERTAIN ABOUT THE EPA'S DIRECTION IT WAS MY BUSINESS TO KNOW THESE THINGS HE NOTES INTENSIVE LOBBYING SUBSEQUENTLY HELPED ENVIROTEST BECOME THE NATION'S PREEMINENT TESTING COMPANY IN AN EFFORT TO WIN THE AUTOEMISSIONS TESTING BUSINESS FOR CONNECTICUT MR DAVENPORT ENLISTED THE ASSISTANCE OF VARIOUS LOBBYISTS AND LAWYERS AMONG THEM VERNON JORDAN NOW A CONFIDANT OF PRESIDENT CLINTON WHEN CONNECTICUT OFFICIALS INITIALLY PASSED OVER ENVIROTEST FOR A 150 MILLION TESTING CONTRACT LATE LAST YEAR ITS LOCAL LOBBYISTS APPEALED TO GOV LOWELL WEICKER THE GOVERNOR OVERRULED HIS MOTOR VEHICLE COMMISSIONER GAVE ENVIROTEST THE CONTRACT AND THEN FIRED THE COMMISSIONER GOV WEICKER BELIEVES ENVIROTEST WAS THE BEST CHOICE A SPOKESWOMAN SAYS NEVERTHELESS THE STATE ATTORNEY GENERAL HAS BEGUN AN INVESTIGATION TO MAKE SURE NO IMPROPRIETIES WERE INVOLVED IN THE GOVERNOR'S AWARD OF THE CONTRACT IF THE STATES COMPLY THE NEW EPA RULES COULD MORE THAN QUADRUPLE ENVIROTEST'S FISCAL 1993 REVENUE OF 885 MILLION PREDICTS CHAD E BROWN PRESIDENT OF IPO RESEARCH INC IN NEW YORK BUT IT LOOKS AS THOUGH MR DAVENPORT'S OPPONENTS COULD EXACT AT LEAST A PARTIAL VICTORY IN CALIFORNIA STATE AND EPA OFFICIALS ARE DISCUSSING A COMPROMISE THAT WOULD ALLOW SOME SMALLBUSINESS OPERATORS TO CONTINUE TESTING CARS THERE OTHER STATES ARE WATCHING CALIFORNIA NEVADA GOV BOB MILLER FOR INSTANCE HAS HALTED HIS STATE'S IMPLEMENTATION OF THE NEW FEDERAL RULES PENDING THE OUTCOME OF THE CALIFORNIA FIGHT STATE OFFICIALS AND LAWMAKERS IN SEVERAL OTHER STATES SUCH AS PENNSYLVANIA AND GEORGIA ARE ALSO SEEKING TO RESIST THE EPA RULES A CALIFORNIA COMPROMISE THAT SPREADS WOULD REDUCE ENVIROTEST'S REVENUE GROWTH MR BROWN SAYS HE BELIEVES THE POSSIBILITY THAT SUCH EVENTS WILL SIGNIFICANTLY HURT THE COMPANY IS REMOTE BUT GROWING THE LONGER THE CONTROVERSY RAGES MR DAVENPORT INSISTS THAT THE EFFORTS OF SOME MAVERICK STATE OFFICIALS WON'T STOP THE EPA FROM ENFORCING ITS NEW RULES I THINK THERE IS ABSOLUTELY POSITIVELY NO CHANCE OF A LARGESCALE REVOLT HE SAYS THE EPA TAKES THE POSITION THAT ANY AGREEMENT WITH CALIFORNIA PROBABLY WOULDN'T APPLY TO OTHER STATES COLLEAGUES OF MR DAVENPORT THINK THE CURRENT FRACAS WON'T DETER HIM FROM HIS LONGERTERM AMBITIONS NOTES MS EDMONDS HIS LONGTIME PARTNER CHESTER WANTS TO BE A BILLIONAIRE 9403040053 940304 OVERHAUL OF AIRTRAFFIC CONTROL SYSTEM WILL BE EVEN COSTLIER FAA ESTIMATES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION AGAIN BOOSTED ITS ESTIMATE OF THE COST OF ITS TROUBLED EFFORT TO OVERHAUL THE AIRTRAFFIC CONTROL SYSTEM IT ALSO SAID IT IS SUSPENDING FUNDING FOR AN IMPORTANT PIECE OF THE REVAMPED SYSTEM THE NEW ESTIMATE IS 65 BILLION TO 73 BILLION BUT THE AGENCY QUICKLY ADDED THAT THE FIGURES ASSUME THAT THE CURRENT GOALS AND TIMETABLE FOR THE PROJECT WILL BE MAINTAINED FAA ADMINISTRATOR DAVID HINSON CALLED THAT A BIG IF AND SAID HE WILL REPLACE THE PROJECT'S MANAGEMENT TEAM IN AN EFFORT TO PREVENT THE WORSTCASE SCENARIO OUTLINED IN THE REVISED BUDGET ESTIMATE AN INTERNAL FAA STUDY THAT CONTAINED THE NEW COST PROJECTIONS ESTIMATED THAT THE PROJECT WOULD SUFFER ADDITIONAL DELAYS OF NINE TO 31 MONTHS THE FAA HAD BEEN EXPECTING THAT THE FIRST PHASE OF THE PROGRAM WOULD BE INSTALLED IN SEATTLE IN OCTOBER 1996 THE FAA REPORT NOW ESTIMATES THAT JUNE 1998 IS MORE LIKELY TRANSPORTATION SECRETARY FEDERICO PENA CALLED THE FINDINGS OF THE THE FAA REPORT APPALLING AND UNACCEPTABLE AND VOWED ANY AND ALL STEPS NECESSARY TO GET THIS PROJECT ON TRACK THE PROJECT CALLED THE ADVANCED AUTOMATION SYSTEM IS THE HEART OF A MODERNIZATION PLAN EXPECTED TO COST ABOUT 18 BILLION THE PROGRAM WOULD INSTALL NEW COMPUTER WORKSTATIONS IN 20 AIR TRAFFIC CONTROL CENTERS ACROSS THE COUNTRY AND MODERNIZE 150 AIRPORT TOWERS THE PROGRAM IS VERY IMPORTANT TO US CONTROLLING AIR TRAFFIC IN THE 21ST CENTURY MR HINSON TOLD REPORTERS THE PROGRAM ORIGINALLY WAS CONTRACTED IN 1988 AT A PRICE OF 43 BILLION THE ORIGINAL SCHEDULE CALLED FOR THE FIRST INSTALLATION PIECE THE SEATTLE UPDATE TO BE COMPLETED BY AUGUST 1993 THE AGENCY ALSO IS PLANNING TO MEET WITH ITS PRIMARY CONTRACTOR LORAL CORP WHICH RECENTLY BOUGHT THE ORIGINAL FAA CONTRACTOR FEDERAL SYSTEMS CO FROM INTERNATIONAL BUSINESS MACHINES CORP IN ORDER FOR LORAL TO TAKE OVER THE FAA CONTRACT THE AGENCY MUST APPROVE THE TRANSFER MR HINSON SAID HE WOULD MAKE CERTAIN THAT LORAL PROVIDES PERFORMANCE GUARANTEES AND SCHEDULE AND COST COMMITMENTS BEFORE TRANSFERRING THE ACCORD BUT FAA OFFICIALS SAID IT IS OVERWHELMINGLY LIKELY THAT LORAL WILL BE GRANTED THE CONTRACT MR HINSON WENT OUT OF HIS WAY TO SAY THAT 23 BILLION THAT ALREADY WENT TOWARD SOFTWARE AND HARDWARE FOR THE NEW SYSTEM WAS WELLSPENT INDEED AN FAA SPOKESMAN SAID IBM HAS BEEN PAID 18 MILLION IN AWARD FEES A TYPE OF PERFORMANCE BONUS BUT ACKNOWLEDGING THE NEED TO REASSESS THE PROJECT THE AGENCY SAID IT IS SUSPENDING ITS PLAN TO REPLACE THE CENTRAL HOST COMPUTER WITH SMALLER MACHINES IN EACH OF THE 20 OR SO CONTROL CENTERS ONLY 17 MILLION HAS BEEN SPENT SO FAR ON THE SOCALLED AREACONTROL COMPUTER COMPLEX ALTHOUGH THE FAA REPORT ESTIMATES THAT IT EVENTUALLY COULD COST MORE THAN 1 BILLION OR ABOUT ONESEVENTH OF THE OVERALL PROJECT BUDGET MR HINSON SAID THIS PART OF THE PROGRAM WILL BE REEVALUATED DURING THE SUSPENSION MORE CHANGES COULD BE COMING MR HINSON SAID THE AGENCY IS ONLY AT THE MIDPOINT IN REEVALUATING THE PROJECT STILL IN THE WORKS ARE A REVIEW TO DETERMINE WHETHER NEW TECHNOLOGIES CREATED SINCE 1988 SHOULD BE INTEGRATED INTO THE NEW SYSTEM AND ANOTHER INDEPENDENT STUDY BY THE CENTER FOR NAVAL ANALYSIS THE PROJECT HAS BECOME A GROWING HEADACHE FOR THE FAA OVER THE PAST YEAR IN MARCH THE AGENCY WAS BERATED AT CONGRESSIONAL HEARINGS FOR THE WAY THE PROJECT HAS BEEN HANDLED THEN AFTER MR HINSON TOLD CONGRESS IN SEPTEMBER THAT THE PROGRAM WAS BACK ON TRACK THE AGENCY WAS FORCED TO CONCEDE IN DECEMBER THAT THE SCHEDULE AND COSTS HAD AGAIN BECOME A PROBLEM 9403040052 940304 REVIEW & OUTLOOK EDITORIAL CONGRESS ABDICATES THREE WEEKS AGO THE HOUSE VOTED 238 TO 181 TO CONTINUE EXEMPTING MEMBERS OF CONGRESS FROM THE INDEPENDENT COUNSEL LAW THAT COVERS OTHER GOVERNMENT OFFICIALS THE HOUSE'S LEADERS SOLEMNLY DECLARED THAT CONGRESS MUST TAKE THE LEAD IN POLICING THE BEHAVIOR OF ITS OWN FAT CHANCE THIS WEEK WHEN REP ERNEST ISTOOK WANTED THE ETHICS COMMITTEE TO FINALLY PROBE THE TWOYEAROLD EMBEZZLEMENT SCANDAL AT THE HOUSE POST OFFICE MORE THAN 95 OF THE MEMBERS WHO VOTED AGAINST INDEPENDENT COUNSELS FOR CONGRESS ALSO VOTED AGAINST MR ISTOOK HE LOST 238 TO 186 THE EXCUSE GIVEN WAS THAT A CONGRESSIONAL PROBE WOULD INTERFERE WITH A SIMULTANEOUS EFFORT BY FEDERAL PROSECUTORS BUT THERE'S LITTLE RISK OF THAT IF THE ETHICS COMMITTEE DOESN'T GRANT IMMUNITY TO WITNESSES GOP REP PORTER GOSS AN ETHICS COMMITTEE MEMBER SAYS BY COMPARISON THAT NO MAJOR CORPORATION WOULD DELAY AN INTERNAL REVIEW OF ITS OPERATIONS JUST BECAUSE A CRIMINAL INQUIRY WAS UNDER WAY IF WE CAN'T ENFORCE THE RULES OF THIS BODY EVERY TIME SOMEONE IS BEING INVESTIGATED THEN THE ETHICS COMMITTEE IS COMPLETELY GUTTED HE TOLD US THE SENATE ETHICS COMMITTEE HAS HAD NO QUALMS ABOUT LOOKING INTO ALLEGATIONS AGAINST SENATOR BOB PACKWOOD WHILE HE'S BEING INVESTIGATED BY THE JUSTICE DEPARTMENT SO WE HAVE A MAJORITY OF HOUSE MEMBERS WHO ARE NOW ON RECORD AGAINST SUBJECTING THEMSELVES TO SCRUTINY BY OUTSIDE PROSECUTORS THEIR NAMES WERE LISTED IN THESE COLUMNS ON TUESDAY WHILE VIRTUALLY THE SAME MEMBERS HAVE VOTED TO PUT OFF AN INTERNAL REVIEW OF THE BIGGEST HOUSE CRIMINAL SCANDAL OF RECENT YEARS UNTIL PROBABLY AFTER THE NEXT ELECTION CLIP AND SAVE THIS FOR NOVEMBER 9403040051 940304 AN ISRAELI CARTOONIST BECOMES A PROPHET TO US CHRISTIANS HIS BOOK TREES' PRESAGES THE SECOND COMING THEY SAY HE'S A BIT STUMPED BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV HERE HE IS KNOWN AS THE WRY CARTOONIST BEHIND A COMIC BOOK ABOUT TREES BUT TO MANY EVANGELICAL CHRISTIANS IN THE US HE IS A PROPHET AND WITHOUT EVEN REALIZING IT HE MAY HAVE HERALDED THE SECOND COMING OF THE MESSIAH THE UNWITTING ORACLE IS YA'AKOV KIRSCHEN A BROOKLYNBORN JEW WHO IS ONE OF ISRAEL'S LEADING POLITICAL CARTOONISTS AND HE IS JUST AS BAFFLED AS ANYONE ELSE ABOUT HIS SUDDEN ASCENSION TO PROPHETHOOD MR KIRSCHEN IS BEST KNOWN FOR HIS DRY BONES COMIC STRIP WHICH RUNS IN 35 NEWSPAPERS AROUND THE WORLD ITS STAR IS SHULDIG AN ISRAELISTYLE ZIGGY WHOSE FAITHFUL SIDEKICK IS A DOG NAMED DOOBIE BUT THREE MONTHS AGO MR KIRSCHEN PUBLISHED HIS FIRST BOOK A SERIOUS CARTOON CALLED TREES THE GREEN TESTAMENT THE BOOK WRITTEN IN ENGLISH AND SOLD PRIMARILY IN THE US TELLS THE STORY OF THE JEWS AND ISRAEL FROM THE VIEWPOINT OF TREES AND THEREIN LIES THE CARTOONIST'S GENESIS AS A PROPHET BORNAGAIN CHRISTIANS QUICKLY SEIZED ON THE BOOK AS A SIGN FROM GOD TREES NARRATED LARGELY BY A WIZENED OLD OLIVE TREE SPANS JEWISH HISTORY FROM THE GARDEN OF EDEN TO ISRAEL'S CREATION IN 1948 TO A BUSLOAD OF MODERN TOURISTS PLANTING SAPLINGS THE BOOK'S VARIOUS SCENES ALSO HAPPEN TO ILLUSTRATE ALBEIT UNINTENTIONALLY SEVERAL BIBLICAL SIGNS THAT EVANGELICAL CHRISTIANS BELIEVE WILL PRESAGE THE SECOND COMING AMONG THEM JEWS WILL RETURN TO ISRAEL ISRAEL'S HILLS WILL BE PLANTED WITH TREES AND ITS BARREN LAND WILL BLOOM TO THE EVANGELICAL CHRISTIANS MR KIRSCHEN IS A PROPHET BECAUSE HIS BOOK IS SPREADING THE WORD OF GOD IN SUCH AN EASYTOREAD WAY I DON'T USE THE WORD PROPHET LOOSELY SINCE IT SEEMS THAT IN THE CHRISTIAN COMMUNITY EVERY TOM DICK AND HARRY IS A PROPHET SAYS PAMELA STALEY AN EVANGELICAL CHRISTIAN ACTIVIST FROM ST LOUIS BUT I BELIEVE YA'AKOV IS A PROPHET IF SO HE IS LIVING PROOF THAT THE LORD WORKS IN MYSTERIOUS WAYS MR KIRSCHEN A WHITEHAIRED 55YEAROLD WITH A BOHEMIAN FLAIR FAVORS PAINTSPLATTERED BLUE JEANS AND SPORTS A SMILEYFACE WATCH BORN JERRY KIRSCHEN IN BROOKLYN NY HE EMIGRATED TO ISRAEL IN 1971 AND SHORTLY AFTERWARD STARTED HIS DRY BONES COMIC STRIP FEATURING SLY POLITICAL COMMENTARY ON CURRENT EVENTS HE STARTS INTERVIEWS BY ANNOUNCING THAT HE ISN'T SURE IF GOD EXISTS STILL MR KIRSCHEN IS HAPPILY TAKING HIS NEW STATUS IN STRIDE HE HAS APPEARED ON EVERYTHING FROM THE CHRISTIAN TELEVISION NETWORK TO RADIO SHOWS WITH NAMES LIKE INTERFAITH CONNECTION AND FROM THE HOLY LAND CHRISTIAN NEWSPAPERS HAVE OFFERED TO RUN FREE ADS FOR THE BOOK WHICH IS CURRENTLY BEING SOLD THROUGH A TOLLFREE NUMBER ABOUT 7000 OF A 20000 FIRST PRINTING HAVE BEEN SOLD 5000 OF THEM TO A JEWISH ORGANIZATION AT BRIDGES FOR PEACE AN EVANGELICAL CHRISTIAN GROUP IN JERUSALEM THE ORGANIZATION'S INTERNATIONAL DIRECTOR CLARENCE WAGNER SAYS TREES HAS MADE MR KIRSCHEN A TOP DRAW AS A SPEAKER BEFORE CHRISTIAN PILGRIM GROUPS HE HAS EVEN BEEN ASKED FOR PERMISSION TO TRANSLATE THE BOOK INTO FILIPINO MR KIRSCHEN DECIDED TO WRITE TREES PARTLY IN REACTION TO HIS DISAPPOINTMENT OVER MAUS ART SPIEGELMAN'S RETELLING OF HIS PARENTS' EXPERIENCES IN HITLER'S EUROPE IN A CARTOON IN WHICH THE JEWS ARE MICE THE GERMANS ARE CATS AND THE POLES ARE PIGS MR KIRSCHEN FELT THAT MAUS PORTRAYED JEWS AS WEAK AND ROOTLESS HE WANTED TO SHOW THAT JEWS DO INDEED HAVE STRONG ROOTS AND WHEN HE THOUGHT OF ROOTS MR KIRSCHEN JUST COULDN'T HELP BUT THINK OF TREES ONCE HE SEIZED ON THE IDEA OF TELLING HIS STORY THROUGH TREES HIS FIRST STEP HE SAYS WAS TO MAKE HIMSELF FEEL LIKE A TREE HE SAT IN ONE SPOT FOR HOURS ONE AFTERNOON PAINSTAKINGLY SKETCHING EVERY NEEDLE ON A PINE TREE NEAR HIS HOME AS THE DAY WORE ON THE NOISES SOUNDS AND COLORS AROUND HIM BECAME A BLUR SUDDENLY I REALIZED THAT TO A TREE HUMANS LOOK ROOTLESS BEING BLOWN FROM PLACE TO PLACE SAYS MR KIRSCHEN I REALIZED THAT I HAD SLIPPED INTO THINKING LIKE A TREE I HAD BECOME THE TREE AT FIRST HE HAD PLANNED TO TAKE A PAGE FROM MAUS AND MAKE HIS TREES JEWISH BUT ONCE HE FELT AT ONE WITH A TREE HE KNEW THAT THAT CONCEPT COULDN'T WORK THE TREE PART OF ME SAID THAT WOULD BE CARRYING OVER WHAT WE HUMANS SUFFER FROM DIVIDING OURSELVES INTO JEWS CHRISTIANS AND OTHER CATEGORIES SAYS MR KIRSCHEN ADDING IN ALL SERIOUSNESS I THINK TREES ARE ON A HIGHER SPIRITUAL LEVEL NONETHELESS MR KIRSCHEN BECAME CONVINCED THAT THE FATE OF JEWS AND TREES ARE INEXTRICABLY INTERTWINED THE BIBLE HE POINTS OUT IS FILLED WITH VERSES COMPARING ISRAEL WITH VARIOUS TREES AND UNDER JEWISH LAW TREES HAVE RIGHTS TOO PICKING FRUIT FROM A TREE IS FORBIDDEN UNTIL THE TREE REACHES A CERTAIN AGE FRUIT TREES MAY NOT BE DESTROYED DURING WARFARE AGAINST A CITY IF THE MESSIAH COMES WHILE TREES ARE BEING PLANTED JEWS ARE INSTRUCTED TO LET THE MESSIAH WAIT TREES EVEN ENJOY A JEWISH HOLIDAY OF THEIR OWN IN ISRAEL PLANTING TREES HAS BEEN A KEY PART OF THE ZIONIST DRIVE TO RECLAIM LAND DEVASTATED BY OVERGRAZING AND DEFORESTATION AS WELL AS A WAY TO ESTABLISH THE RIGHTS OF JEWISH SETTLERS OVER THE YEARS THE JEWISH NATIONAL FUND A PRIVATE GROUP THAT IS A LEADER IN REFORESTATION EFFORTS HAS PLANTED MORE THAN 200 MILLION TREES IN ISRAEL 20 OF THE MONEY HAS BEEN DONATED BY CHRISTIANS THE FUND NOT SURPRISINGLY HAS ALREADY SNAPPED UP 5000 COPIES OF MR KIRSCHEN'S BOOK AND HAS AGREED TO BUY AS MANY AS 15000 MORE THE BOOK IS GAINING SOME FAVORABLE ATTENTION FROM JEWISH AUDIENCES AN ISRAELI ROCKANDROLL ARTIST IS COMPOSING A MUSICAL VERSION OF TREES TO BE PERFORMED IN JERUSALEM STILL MR KIRSCHEN'S CHRISTIAN FANS ARE PROVING FAR MORE AVID SO MUCH SO THAT HE STARTED A TREES NEWSLETTER THAT GOES PRIMARILY TO ACTIVISTS INTERESTED IN DISTRIBUTING THE BOOK AND KEEPING CURRENT ON NEW DEVELOPMENTS HE ALSO IS WORKING ON A NEW VERSION OF TREES THAT WILL PROVIDE BIBLICAL AND HISTORICAL COMMENTARY ON EVERY PAGE THE TREES PHENOMENON HAS STARTED TO SHAKE EVEN MR KIRSCHEN'S DISBELIEF HE POINTS OUT THAT HE WROTE 12 DRAFTS OF TREES THE SAME NUMBER OF THE BIBLICAL TRIBES OF ISRAEL AND OF CHRIST'S APOSTLES HE RECENTLY NOTICED THAT THE NAME OF TEL AVIV'S TAMAR CAFE WHERE HE SPENDS MUCH OF HIS TIME AND COMPOSED MOST OF THE BOOK MEANS DATE TREE IN HEBREW HIS REGULAR TABLE IS LOCATED DIRECTLY BELOW A SIGN WITH THE CAFE'S LOGO A TREE MR KIRSCHEN STILL HAS HIS DOUBTS ABOUT WHETHER HE IS THE RIGHT CANDIDATE TO BE DELIVERING GOD'S WORD BUT HIS CHRISTIAN FANS TRY TO REASSURE HIM BY REMINDING HIM OF THE TALE OF BALAAM'S TALKING DONKEY IN THE BOOK OF NUMBERS THEY KEEP TELLING ME THAT IF GOD CAN MAKE AN ASS PROPHETIZE SAYS MR KIRSCHEN THEN WHY NOT A CARTOONIST 9403040050 940304 AIRCRAFT MAKERS SEE CORPORATE PLANES FLYING NONSTOP TO ASIA ON THE HORIZON BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE PREDICTIONS OF A BOOM IN ASIAN ORDERS FOR CORPORATE JETS HAVE PRODUCED MORE AIR THAN AIRCRAFT IN THE PAST BUT NOW THE IDEA OF BUYING A PRIVATE PLANE TO FERRY THE BOSS AROUND THE PACIFIC RIM LOOKS LIKE IT FINALLY IS READY TO FLY GOVERNMENTS ARE EASING SOME OF THE RULES THAT HOBBLE PRIVATE FLYING IN THE REGION BREAKTHROUGH ORDERS IN SEVERAL COUNTRIES ARE SETTING AN EXAMPLE FOR FUTURE BUYERS AND PERHAPS INSPIRING A LITTLE ENVY THE SPREADING GEOGRAPHICAL REACH OF ASIAN COMPANIES IS MAKING AIRCRAFT MAKERS' TRADITIONAL SALES PITCH THAT PRIVATE JETS SAVE VALUABLE EXECUTIVE TIME MORE COMPELLING INTERNATIONALLY ESPECIALLY HERE IN ASIA AND IN MEXICO AND SOUTH AMERICA I THINK THERE ARE TREMENDOUS OPPORTUNITIES SAID THEODORE J FORSTMANN CHAIRMAN OF SAVANNAH GABASED GULFSTREAM AEROSPACE CORP CHINA COULD BE A HUGE MARKET SAID MR FORSTMANN WHO WAS ATTENDING THE ASIAN AEROSPACE '94 TRADE SHOW IN SINGAPORE CHARLES N COPPI SENIOR VICE PRESIDENT ENGINEERING AND TECHNOLOGY AT GULFSTREAM SAID WE'VE BEEN IN THE BUSINESS LONG ENOUGH TO KNOW WHAT'S COMING AND THIS PART OF THE WORLD IS IT THE GEOGRAPHY OF BUSINESS IS SHIFTING ASIAN DEMAND FOR BUSINESS AIRCRAFT IS ONE OF THE MAIN REASONS GULFSTREAM AND DIVERSIFIED MONTREAL TRANSPORTATION CONCERN BOMBARDIER INC ARE DEVELOPING LONGRANGE PLANES THAT CAN FLY FROM NEW YORK TO TOKYO NONSTOP WHEN BOMBARDIER'S CANADAIR UNIT FIRST SKETCHED PLANS FOR ITS GLOBAL EXPRESS JET THE DESIGN CALLED FOR A MAXIMUM RANGE OF 5600 NAUTICAL MILES TOO SHORT FOR NEW YORK TO TOKYO AFTER TALKING WITH POTENTIAL CUSTOMERS CANADAIR DECIDED TO AIM FOR 6500 NAUTICAL MILES SAID JOHN LAWSON VICE PRESIDENT INTERNATIONAL MARKETING AND SALES AT CANADAIR'S BUSINESSAIRCRAFT DIVISION IT WASN'T JUST THIS REGION IT WAS ALSO THE MIDDLE EAST MR LAWSON SAID MIDDLE EASTERN BUYERS WANT A PLANE THAT CAN FLY NONSTOP TO WASHINGTON THE GLOBAL EXPRESS IS DESIGNED TO FLY EIGHT PASSENGERS AND FOUR CREW MEMBERS NONSTOP FROM HONG KONG TO LOS ANGELES TOKYO TO NEW YORK OR SINGAPORE TO LONDON THE SMALLER GULFSTREAM V WILL HAVE A SIMILAR RANGE BOTH PLANES WILL USE THE SAME ENGINE BUT EACH COMPANY SAID IT WILL HAVE THE BETTER JET BOMBARDIER FORMALLY LAUNCHED THE GLOBAL EXPRESS PROGRAM IN DECEMBER WITH 30 FIRM ORDERS FOR THE 28 MILLION IN JANUARY 1994 DOLLARS JET MR LAWSON SAID SLIGHTLY OVER 50 OF THE FIRM ORDERS FOR THE GLOBAL EXPRESS ARE FROM OUTSIDE NORTH AMERICA SIX ARE FROM ASIAN CONCERNS THE MARKET FOR CANADAIR'S EXISTING CHALLENGER JETS IS ABOUT 70 NORTH AMERICAN MR LAWSON SAID GULFSTREAM WENT THROUGH A SIMILAR SHIFT TO A HIGHER TARGET NONSTOP FLYING RANGE AS IT DREW PLANS FOR THE GULFSTREAM V SAID MR FORSTMANN A SENIOR PARTNER AT NEW YORK BUYOUT FIRM FORSTMANN LITTLE & CO WHICH ACQUIRED GULFSTREAM THREE YEARS AGO ASIA IS GOING TO BE A VERY BIG MARKET FOR THE GULFSTREAM V MR FORSTMANN SAID CURRENTLY THE COMPANY SELLS MORE PLANES IN NORTH AMERICA THAN OUTSIDE IT HE ADDED THAT IN THE NEXT 60 DAYS THE COMPANY WILL ANNOUNCE A BOARD OF ADVISERS STRATEGICALLY PLACED AROUND THE WORLD TO HELP GULFSTREAM CASH IN ON INTERNATIONAL DEMAND FOR BUSINESS JETS GULFSTREAM WON'T REVEAL TOTAL ORDERS FOR THE GULFSTREAM V SUCCESSOR TO THE COMPANY'S SUCCESSFUL GULFSTREAM IV BUT FRED A BREIDENBACH PRESIDENT AND CHIEF OPERATING OFFICER SAID SEVEN ARE FROM ASIA AVIATION ANALYST WOLFGANG DEMISCH MANAGING DIRECTOR OF BT SECURITIES CORP IN NEW YORK SAID I TEND TO AGREE WITH THE IDEA THAT ASIA IS GOING TO BE A MAJOR MARKET FOR THE NEW CLASS OF BIG LONGRANGE BUSINESS JETS THERE ARE ENOUGH CENTERS OF FINANCIAL AND ECONOMIC POWER THERE THAT A VERY LARGE LONGRANGE AIRPLANE WOULD BE SENSIBLE LIKELY BUYERS OF SUCH PLANES INCLUDE LARGE ASIAN TRADING COMPANIES AND GLOBAL NATURALRESOURCE CONCERNS MR DEMISCH SAID THE AIRCRAFT ALSO WILL APPEAL TO US COMPANIES WITH SUBSTANTIAL OPERATIONS MAJOR CUSTOMERS OR KEY SUPPLIERS IN ASIA BUYERS OF THE GULFSTREAM V WON'T BE ABLE TO START FLYING THE PLANE UNTIL 1996 BUYERS OF CANADAIR'S GLOBAL EXPRESS WILL HAVE TO WAIT UNTIL AROUND 1998 IN THE MEANTIME BUSINESSJET MANUFACTURERS ARE HUSTLING FOR ORDERS IN ASIA FOR THEIR EXISTING MODELS AND REPORTING SOME IMPORTANT BREAKTHROUGHS LEARJET INC OF WICHITA KAN ANOTHER BOMBARDIER UNIT SAID IT DELIVERED LAST YEAR THE FIRST PRIVATE BUSINESS JET BASED IN TAIWAN THE LEARJET IS FITTED AS AN EXECUTIVE JET BUT CAN TOW TARGETS FOR THE ARMED FORCES TO PRACTICE SHOOTING THAT DUAL USE MAY HAVE HELPED THE BUYER GET AROUND TAIWAN'S LONGSTANDING PROHIBITION ON PRIVATELY OWNED JETS CANADAIR SOLD A CHALLENGER TO A SOUTH KOREAN CONCERN 18 MONTHS AGO WHICH IT SAID IS THE FIRST CORPORATE AIRCRAFT IN THAT COUNTRY IN MALAYSIA OWNING A PRIVATE JET SEEMS TO BE AN EMERGING STATUS SYMBOL FOR TYCOONS THE LATEST CORPORATE CHIEFTAIN TO JOIN THIS ELITE AIR FORCE IS SARAWAKBASED CONSTRUCTION AND TIMBER MAGNATE TING PEK KHIING DATUK HALIM SAAD EXECUTIVE CHAIRMAN OF MALAYSIAN CONGLOMERATE RENONG BHD REGULARLY USES A CITATION JET MADE BY CESSNA AIRCRAFT CO WICHITA A UNIT OF AEROSPACE COMMERCIALPRODUCTS AND FINANCIALSERVICES CONCERN TEXTRON INC I THINK VALUES ARE CHANGING SAID CANADAIR'S MR LAWSON THE FLAUNTING OF WEALTH TRADITIONALLY HAS BEEN FROWNED UPON IN MANY ASIAN CULTURES SOUTHEAST ASIA IS A BURGEONING MARKET FOR BUSINESS JETS SAID ROBERT C WILLIAMS VICE PRESIDENT FOR INTERNATIONAL MARKETING AT LEARJET ALTHOUGH BUSINESSJET PURCHASES OUTSIDE AUSTRALIA IN THE REGION ARE COUNTED IN ONES AND TWOS WE'RE CONVINCED THAT WILL CHANGE IN THE NEAR TERM MR WILLIAMS SAID THE REASON IT HASN'T HAPPENED YET IS BECAUSE OF GOVERNMENT RESTRICTIONS THOSE RESTRICTIONS ARE EASING GRADUALLY ALONG WITH TAIWAN'S APPARENT RELAXING OF ITS PROHIBITION ON BUSINESS JETS THAILAND IS LIFTING ITS BAN ON PRIVATE OWNERSHIP OF JETS MR WILLIAMS SAID ONE BIG POTENTIAL MARKET HOWEVER REMAINS DIFFICULT TO CRACK UNTIL HONG KONG FINISHES ITS NEW AIRPORT SOMETIME THIS DECADE TRAFFIC JAMS AT THE COLONY'S EXISTING AIRPORT MAKE OPERATING A PRIVATE JET THERE ALL BUT IMPOSSIBLE 9403040049 940304 BUSINESS BRIEF STEWART ENTERPRISES INC FISCAL 1STPERIOD NET ROSE AT LEAST 52 COMPANY SAYS STEWART ENTERPRISES INC EXPECTS TO REPORT A JUMP OF AT LEAST 52 IN ITS FISCAL FIRSTQUARTER PROFIT THANKS TO AN AGGRESSIVE PACE OF ACQUISITIONS AND STRONG SALES OF PREARRANGED FUNERAL SERVICES THE NEW ORLEANS COMPANY ESTIMATED NET INCOME FOR THE PERIOD ENDED JAN 31 AT 65 MILLION TO 69 MILLION OR 33 CENTS TO 35 CENTS A SHARE UP FROM 42 MILLION OR 29 CENTS A SHARE A YEAR EARLIER THE RESULTS ARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN NOVEMBER IN AN INTERVIEW RONALD PATRON CHIEF FINANCIAL OFFICER OF THE FUNERARYSERVICES CONCERN SAID REVENUE IN THE QUARTER ROSE AT LEAST 37 TO BETWEEN 56 MILLION AND 58 MILLION FROM 408 MILLION A YEAR EARLIER LAWRENCE BERNER PRESIDENT AND CHIEF EXECUTIVE SAID HE EXPECTS STEWART TO SUBTANTIALLY INCREASE ITS RATE OF ACQUISITIONS SO FAR THIS FISCAL YEAR THE COMPANY HAS ACQUIRED NINE FUNERAL HOMES AND SEVEN CEMETERIES 9403040048 940304 INTERNATIONAL BRIEF CANAL PLUS SA GROUP AND BERTELSMANN PLAN VENTURE FOR PAY TV SERVICES FRENCH SATELLITE TELEVISION GROUP CANAL PLUS SA AND GERMANY'S BERTELSMANN AG CONFIRMED A MUCHRUMORED LINKUP IN PAY TELEVISION AND NEW TV SERVICES IN THE LATEST DEVELOPMENT IN EUROPE'S MULTIMEDIA INDUSTRY CANAL PLUS SAID IT SIGNED AN AGREEMENT THAT WILL SET THE TIMETABLE AND BASIC TERMS FOR PROJECTS IN PAY TV AND NEW SERVICES MADE POSSIBLE THROUGH DIGITAL TECHNOLOGY SUCH AS PAYPERVIEW TV AND VIDEO ON DEMAND A NEW COMPANY WILL BE CREATED BY SUMMER IT SAID CANAL PLUS DIDN'T DISCLOSE ANY FINANCIAL DETAILS OFFICIALS COULDN'T BE REACHED FOR A COMMENT 9403040047 940304 BUSINESS BRIEF MEDAR INC FIRSTPERIOD SALES EARNINGS EXPECTED TO TOP LAST YEAR'S AUTOMOTIVE SUPPLIER MEDAR INC EXPECTS SALES AND EARNINGS FOR THE FIRST QUARTER OF THIS YEAR TO BE BETTER THAN FIRST QUARTER 1993 SAID CHAIRMAN AND PRESIDENT CHARLES J DRAKE OUR BACKLOG IS AS GOOD AS IT'S EVER BEEN DRAKE SAID IN THE LAST SEVEN OR EIGHT MONTHS OUR BOOKINGS ARE RUNNING THE HIGHEST THEY'VE EVER BEEN MEDAR AN AUTOMATIONEQUIPMENT MAKER IN FARMINGTON HILLS MICH EARNED 615734 OR NINE CENTS A SHARE ON SALES OF 57 MILLION IN THE YEAR AGO FIRST QUARTER THE DOMESTIC AUTO INDUSTRY HAS PICKED UP QUITE A BIT MR DRAKE SAID AND THERE'S GOING TO BE A LOT OF SPENDING IN DETROIT FOR THE NEXT THREE YEARS THERE WILL BE DRAMATIC CHANGES IN BODY STYLES AND A LOT OF CHANGES IN MODELS IN ADDITION TO MAKING MAJOR BODY STYLE CHANGES THE AUTO MAKERS ARE ALSO EXPANDING TRUCK CAPACITY TO MEET GROWING DEMAND FOR MINIVANS PICKUPS AND SPORTUTILITY VEHICLES MR DRAKE SAID 9403040045 940304 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 3/16 LOW 3 3/16 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 338 30 TO 33 DAYS 350 34 TO 59 DAYS 358 60 TO 89 DAYS 365 90 TO 129 DAYS 378 130 TO 179 DAYS 385 180 TO 239 DAYS 395 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 359 30 DAYS 371 60 DAYS 380 90 DAYS CERTIFICATES OF DEPOSIT 289 ONE MONTH 299 TWO MONTHS 312 THREE MONTHS 336 SIX MONTHS 360 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 358 60 DAYS 368 90 DAYS 376 120 DAYS 382 150 DAYS 387 180 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 11/16 3 9/16 TWO MONTHS 3 13/16 3 11/16 THREE MONTHS 3 15/16 3 13/16 FOUR MONTHS 4 3 7/8 FIVE MONTHS 4 1/16 3 15/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 13/16 THREE MONTHS 4 1/16 SIX MONTHS 4 7/16 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 594 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 FEBRUARY 28 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 340 13 WEEKS 361 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 751 60 DAYS 757 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 754 60 DAYS 763 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 560 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 276 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403040044 940304 WHAT'S NEWS BUSINESS AND FINANCE CLINTON RENEWED A TOUGH TRADE PROVISION KNOWN AS SUPER 301 A STEP THAT MOVES TOWARD THOUGH DOESN'T ACTUALLY LAUNCH A TRADE WAR WITH JAPAN THE WHITE HOUSE IS USING SUPER 301 AS PART OF A PLAN TO SIGNAL ITS SERIOUSNESS OVER SHRINKING THE 593 BILLION US TRADE DEFICIT WITH JAPAN BUT IT COULD TAKE NEARLY A YEAR BEFORE ANY TRADE SANCTIONS ARE LEVIED FEARS THAT A USJAPANESE TRADE WAR WILL STOKE INFLATION SENT BOND PRICES LOWER WHILE SPECULATION THAT TENSIONS MIGHT DISRUPT PURCHASES OF US CROPS PUSHED GRAIN FUTURES DOWN THE TREASURY'S 30YEAR BOND FELL MORE THAN 3/4 POINT ITS YIELD SHOT UP TO 683 THE DOLLAR FELL AGAINST THE YEN THE US AUTO INDUSTRY IS ADDING MORE THAN A MILLION UNITS OF ADDITIONAL NORTH AMERICAN CAR AND TRUCK PRODUCTION CAPACITY AND ABOUT 9500 NEW JOBS CHRYSLER ANNOUNCED PLANS TO SPEND 18 BILLION ON ADDITIONAL CAPACITY WHICH WOULD ADD 6000 NEW JOBS SALES OF NEW CARS AND TRUCKS IN THE US SURGED 199 IN FEBRUARY FROM A YEAR EARLIER TO THE HIGHEST SEASONALLY ADJUSTED PACE IN OVER TWO YEARS THE NATION'S BIG RETAILERS REPORTED STRONG SALES GAINS FOR FEBRUARY DESPITE THE HARSH WINTER WEATHER SALES JUMPED 64 ACCORDING TO A SURVEY BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA IS PRESSURING VIACOM TO SWEETEN THE TERMS OF ITS 8 BILLION OFFER TO TAKE OVER THE VIDEO RENTAL CHAIN PEOPLE FAMILIAR WITH THE SITUATION SAID HIGHYIELD JUNKBOND PRICES ARE BEING PRESSURED AS INVESTORS ARE PULLING CASH OUT OF JUNKBOND MUTUAL FUNDS ABOUT 730 MILLION HAS LEFT THE FUNDS IN THE LATEST WEEK AND PRICES THIS WEEK ARE AS MANY AS THREE POINTS LOWER APPLE IS UNVEILING A NEW VERSION OF ITS NEWTON MESSAGEPAD THAT IS CHEAPER AND CORRECTS SOME SHORTCOMINGS IN THE ORIGINAL PRODUCT APPLE AND ALCATELALSTHOM WON SUPPLIER CONTRACTS FROM BRITISH TELECOMMUNICATIONS FOR THE FIRST TRIALS IN EUROPE OF VIDEOONDEMAND SERVICES THE FLORIDA INSURANCE DEPARTMENT IS EXPECTED TO PROPOSE A 20 MILLION FINE AGAINST METROPOLITAN LIFE TO SETTLE A MULTISTATE INVESTIGATION INTO THE INSURANCE COMPANY'S SALES PRACTICES A JUDGE SAID GM PROBABLY PERJURED ITSELF AND SYSTEMATICALLY DESTROYED DOCUMENTS RELATED TO A CIVIL CASE INVOLVING ITS 19731987 FULLSIZE PICKUPS WITH SIDESADDLE GASOLINE TANKS FACTORY ORDERS ROSE 21 IN JANUARY THE SIXTH MONTHLY RISE IN A ROW ORDERS GAINED 14 IN DECEMBER TELECOMMUNICATIONS AND SOFTWARE GIANT MICROSOFT AGREED TO JOINTLY TEST INTERACTIVE TV SERVICES ON TCI'S CABLE SYSTEMS IN SEATTLE AND DENVER DELL COMPUTER REPORTED BETTERTHANEXPECTED FISCAL FOURTHQUARTER EARNINGS SENDING ITS STOCK UP 85 HEINZ IS PLANNING A SHAKEUP AT ITS WEIGHT WATCHERS FOOD UNIT THAT INVOLVES NAMING A NEW PRESIDENT AND SLASHING EMPLOYMENT BY AT LEAST 9 CALGENE SAID THE FDA'S LONGAWAITED HEARING ON ITS GENETICALLY ENGINEERED TOMATO HAS BEEN POSTPONED GAP'S PROFIT JUMPED 66 IN ITS FOURTH QUARTER INDICATING THAT THE RETAILER IS EMERGING FROM A SLUMP AFTER INTRODUCING MORE FASHIONABLE CLOTHES ITS STOCK ROSE 1125 TO 46125 BONDS LEHMAN BROTHERS TREASURY INDEX 532677 OFF 3755 COMMODITIES OIL 1475 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 14451 OFF 041 SPOT INDEX 13065 OFF 017 DOLLAR 10395 YEN OFF 015 17105 MARKS UP 00065 9403040043 940304 INTERNATIONAL BRIEF GOLDSTAR CO PROFIT MORE THAN DOUBLED IN 1993 SALES JUMPED 14 SOUTH KOREA'S GOLDSTAR CO SAID 1993 PROFIT MORE THAN DOUBLED AND SALES JUMPED 14 AS A RESULT OF ITS YEARLONG EFFORTS TO STREAMLINE OPERATIONS THE COMPANY'S UNCONSOLIDATED STATEMENT SHOWED THAT NET INCOME JUMPED TO 6563 BILLION WON 811 MILLION FROM 2652 BILLION WON IN 1992 SALES ROSE TO 432 TRILLION WON FROM 379 TRILLION WON EXPORTS LED THE COMPANY'S SALES GAINS WITH A HEALTHY 17 RISE TO A TOTAL OF 233 TRILLION WON EXPORTS TO SUCH NEW MARKETS AS SOUTHEAST ASIAN COUNTRIES AND CHINA WERE PARTICULARLY STRONG DOMESTIC SALES ROSE 11 TO 199 TRILLION WON THE COMPANY IS TARGETING 1994 SALES OF 510 TRILLION WON GOLDSTAR ATTRIBUTED THE SHARP RISE IN PROFIT TO ITS LEANER ORGANIZATION AND CONTINUED INVESTMENT IN TECHNOLOGY WHICH HELPED HONE THE COMPANY'S COMPETITIVENESS IN WORLD MARKETS 9403040042 940304 CORRECTIONS & AMPLIFICATIONS IN YESTERDAY'S HEARD ON THE STREET COLUMN ALUMAX INC SHOULD HAVE BEEN LISTED AMONG ALUMINUM STOCKS THAT MIGHT BENEFIT FROM TURMOIL IN RUSSIA AND CYPRUS AMAX MINERALS CO SHOULDN'T HAVE BEEN ALUMAX CONTAINING THE ALUMINUM OPERATIONS OF AMAX INC WAS SPUN OFF FROM AMAX IN NOVEMBER AS A PRELUDE TO THE MERGER THAT CREATED CYPRUS AMAX MINERALS 9403040041 940304 TECHNOLOGY BRIEF MOTOROLA INC POWERPC 601'S PRICE IS CUT 15 AS CHIP WAR CONTINUES MOTOROLA INC ANNOUNCED A 15 PRICE CUT ON ITS POWERPC 601 MICROPROCESSOR IN THE LATEST ROUND OF THE PRICE WAR THAT HAS PRECEDED THE CHIP'S PLANNED DEBUT LATER THIS MONTH AS THE BRAINS OF A NEW GENERATION OF PERSONAL COMPUTERS MOTOROLA BASED IN SCHAUMBURG ILL SAID ITS MICROPROCESSOR DIVISION NOW WILL SELL THE POWERPC 601 FOR AS LOW AS 238 WHEN PURCHASED IN VOLUMES OF 20000 THE POWERPC 601 MICROPROCESSOR HAS BEEN ADOPTED BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND OTHERS AS THEIR ANSWER TO INTEL CORP'S POWERFUL NEW PENTIUM CHIP MOTOROLA'S PRICE MOVE YESTERDAY IS BUT THE LATEST SALVO IN THE BATTLE IN THE CHIP MARKET INTEL CUT THE PRICE OF THE PENTIUM AND IBM REDUCED THE PRICE OF ITS POWERPC IN RECENT WEEKS AS THE RIVALS CONTINUE TO JOCKEY FOR A COMPETITIVE ADVANTAGE 9403040040 940304 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTONITES FIGHT TO REGAIN MOMENTUM ON HEALTHCARE REFORM AIMING TO BYPASS THE NATIONAL MEDIA THE WHITE HOUSE WILL SEEK MORE LOCAL COVERAGE OF CLINTON'S PLAN BY HAVING HIM PHONE AND VISIT AVERAGE FOLKS WITH HEALTHCARE WORRIES IT MOVES TO ORGANIZE A COALITION OF SUPPORTIVE SMALL FIRMS TO COUNTER THE SMALLBUSINESS LOBBY DEMOCRATS PLAN A NEW AD STACKED DECK THAT SAYS INSURANCE COMPANIES STACK THE DECK AGAINST ORDINARY PEOPLE FINGERPOINTING BEGINS AS POLL RATINGS SLIDE FOR CLINTON'S PLAN KANSAS REP GLICKMAN A DEMOCRAT FAULTS THE WHITE HOUSE BLAME GAME AGAINST INSURERS DRUG FIRMS AND DOCTORS HILLARY RODHAM CLINTON AND CLINTON AIDE ICKES KEEP WHITE HOUSE COUNSELOR GERGEN OFF THE HEALTHCARE TEAM AS TOO READY TO COMPROMISE GERGEN IS JUST AS HAPPY TO BE LEFT OUT AND IS EXPECTED TO LEAVE THE WHITE HOUSE BEFORE LONG WEST VIRGINIA SEN ROCKEFELLER URGES CLINTON TO FOCUS SOLELY ON SELLING HEALTHCARE REFORM WORRIES GROW THAT RISING LONGTERM INTEREST RATES WILL IMPEDE THE RECOVERY THE NEARLY HALFPERCENTAGEPOINT SPURT IN LONGTERM RATES RECENTLY COULD DAMP THE BOOM IN HOUSING AND EQUIPMENT PURCHASES THAT HAS CHEERED CLINTON AIDES IF SUSTAINED THE RISE COULD SLOW THE ECONOMY AS MUCH AS A 30 BILLION TAX INCREASE ADMINISTRATION ECONOMISTS FIGURE BENTSEN ARGUES THAT INVESTORS ARE PUSHING UP RATES BECAUSE THE ECONOMY IS HEARTIER THAN WAS EXPECTED MORGAN STANLEY ECONOMIST STEPHEN ROACH BLAMES THE SURGE IN LONGTERM RATES ON INFLATION MANIA STIRRED BY THE FED'S MOVE TO RAISE SHORTTERM RATES FINANCIAL MARKETS SEEM TO THINK THE FED SEES AN IMMINENT INFLATION PROBLEM WHICH FED CHIEF GREENSPAN PROTESTS ISN'T THE CASE BUT I SOMEHOW DON'T SEEM TO GET IT ACROSS AS WELL AS I THINK I WOULD LIKE TO HE SAYS SPY FALLOUT CIA CHIEF WOOLSEY FACES CRITICISM IN AMES CASE CRITICS WITHIN THE AGENCY SAY HIS GRASP ON THE HELM HAS BEEN SHAKEN BY HIS LOW PROFILE IN THE WAKE OF THE AMES CHARGES ONE CIA VETERAN SAYS WOOLSEY DOESN'T KNOW MUCH ABOUT WHAT GOES ON INSIDE THE AGENCY IN HIS DEFENSE THE CIA SAYS WOOLSEY IS FORBIDDEN BY THE FEDERAL COURT HANDLING THE AMES CASE FROM TALKING ABOUT IT THE SCANDAL FURTHER DEMORALIZES AGENCY VETERANS WHO FEEL WOOLSEY SPENDS TOO MUCH TIME CULTIVATING CONGRESS AND TOO LITTLE ON THE PROBLEMS OF THE SHRINKING CIA THEY ALSO FEAR THAT PRESSURE WILL INCREASE TO GET THE FBI MORE INVOLVED IN SECURITY WORK AT THE AGENCY ESPECIALLY BECAUSE AMES HAD MANAGED TO PASS TWO CIARUN POLYGRAPHS CONGRESSIONAL DEFENDERS PRAISE WOOLSEY'S INDEPENDENCE SAYING THAT CIA ESTIMATES ON HAITI AND BOSNIA DIFFERED SIGNIFICANTLY FROM ADMINISTRATION POLICY WHITEWATER HEARINGS A DEMOCRATIC SENATOR'S AIDE SAYS HE HEARS NIBBLES IN THE HALLS ABOUT DEMOCRATS JOINING GOP CALLS FOR SENATE HEARINGS ON THE WHITEWATER FLAP DEMOCRATS ON THE BANKING AND JUDICIARY COMMITTEES ARE WORRIED THAT THE PRESSURES ARE GOING TO BE SO GREAT THAT DEMOCRATS WON'T HAVE ANY CHOICE HE SAYS BYE BYE BOREN SEN BOREN INTENDS TO RESIGN BY YEAR END TO BECOME PRESIDENT OF THE UNIVERSITY OF OKLAHOMA FRIENDS SAY CLINTON AIDES CHEER THE PROSPECT BECAUSE OF THE DEMOCRAT'S FREQUENT OPPOSITION TO THE PRESIDENT ON SUCH ISSUES AS HEALTH CARE OKLAHOMA REP BREWSTER ALREADY BEGINS FUND RAISING TO RUN FOR THE SEAT MAC THE EAR WHITE HOUSE CHIEF OF STAFF MCLARTY BECOMES CLINTON'S SOUNDING BOARD MEETING IN RECENT WEEKS WITH JESSE JACKSON RALPH NADER AND GOP REP ARMEY ON CLINTON'S TRIP TO CHICAGO MCLARTY RODE IN THE MOTORCADE WITH MAYOR DALEY WHO PUSHED FOR THE WINDY CITY TO HOST THE 1996 DEMOCRATIC CONVENTION MOVING TARGET THE NATIONAL RIFLE ASSOCIATION LONG A FIXTURE IN ITS POSH BUT CRAMPED DOWNTOWN WASHINGTON HEADQUARTERS HAS DECAMPED LOCK STOCK AND BARREL TO A FACELESS NEW BUILDING IN SUBURBAN VIRGINIA IN A SHAKEUP CHIEF LOBBYIST JAMES JAY BAKER IS BEING REPLACED BY GRASSROOTS ORGANIZER TONYA METASKA CLINTON GIRDS FOR A BITTER FIGHT WITH CONGRESS OVER BOSNIA PEACEKEEPERS THE WHITE HOUSE PLANS TO STRESS THAT THE US COMMITMENT TO POLICE A POSSIBLE PEACE WOULD BE PROPORTIONAL TO LIMITED US INTERESTS THERE BUT THAT PUTS CLINTON ON A COLLISION COURSE WITH PENTAGON AND NATO PLANNERS WHO WANT TO GO IN SEMIHEAVY WITH ARMORED VEHICLES LAWMAKERS ALSO WILL FLINCH AT THE TROOP NUMBERS THE MILITARY WANTS AND THE MULTIBILLIONDOLLAR ANNUAL COST PLANNERS SEE THE NEED FOR THOUSANDS OF MILITARY ENGINEERS LOGICIANS AND INTELLIGENCE OFFICERS AND THOUSANDS MORE TROOPS TO PROTECT THEM THE SOMALIA EXPERIENCE AND TALES OF CORRUPTION AND POOR INTELLIGENCE MAKE THEM FEAR LEAVING SUCH DUTIES TO THE UN THE PRESIDENT WILL HAVE TO COME ON HARD TO GET WHAT HE WANTS WARNS HOUSE FOREIGN AFFAIRS CHAIRMAN HAMILTON WHO BACKS A US ROLE IN BOSNIA PEACEKEEPING MINOR MEMOS SEOUL BROTHER SOUTH KOREA SOUNDS OUT THE US AND CANADA ABOUT BECOMING AN ASSOCIATE MEMBER OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHEN CIA DIRECTOR WOOLSEY HELD A MEETING TO BRIEF EMPLOYEES ABOUT THE SPY CASE THE FIRST QUESTION FROM THE AUDIENCE WAS ABOUT THE AGENCY'S HEALTH PLAN NOTING THAT HIS REPLACEMENT HIP WAS MADE IN GERMANY AND FRANCE LABOR SECRETARY REICH QUIPS I DO NOT EVEN FULFILL THE DOMESTICCONTENT REQUIREMENTS FOR BEING A CABINET SECRETARY 9403040039 940304 LETTERS TO THE EDITOR YOUR STORY LEFT ME SKATING ON THIN ICE YOUR FEB 17 ARTICLE IN SKATE DESIGN THE WHEELS OF PROGRESS HAVE FROZEN AXELS PICTURED THE PASSIVE ROLE OF THE US FIGURE SKATING ASSOCIATION IN THE DEVELOPMENT OF NEW SKATING EQUIPMENT I SHARED WITH YOUR REPORTER MY EXPERIENCE AS THE FORMER DIRECTOR OF THE USFSA'S SPORTS SCIENCE PROGRAM BECAUSE I WAS ASSOCIATED WITH THE USFSA UNTIL 1989 I WAS DISCUSSING MATTERS RELATING ONLY TO THE OLD ADMINISTRATION I WAS SURPRISED TO FIND QUOTATIONS OF WHAT I HAD SAID TRANSFORMED TO THE PRESENT TENSE BECAUSE MORE THAN ONCE I POINTED OUT THE RECENT CHANGES IN THE USFSA ADMINISTRATION AND ITS NEW APPROACH TO THE OLD PROBLEMS I AM TAKING THIS OPPORTUNITY TO WISH GOOD LUCK TO THE USFSA 9403040038 940304 CLINTON RENEWS TRADE MEASURE AIMED AT JAPAN TOUGH PROVISION STEPS UP TENSIONS WITH TOKYO EARLY ACTION UNLIKELY BY WALL STREET JOURNAL REPORTERS ASRA Q NOMANI IN WASHINGTON AND DAVID P HAMILTON IN TOKYO PRESIDENT CLINTON TOOK DIRECT AIM AT JAPAN BY RENEWING A TOUGH TRADE PROVISION KNOWN AS SUPER 301 BUT THE MEASURE THREATENS RATHER THAN LAUNCHES A TRADE WAR THE PROVISION IS CONSIDERED THE MOST POWERFUL WEAPON IN THE US ARSENAL AGAINST ITS TRADING PARTNERS AND THE CLINTON ADMINISTRATION IS USING IT AS PART OF AN ORCHESTRATED PLAN TO SIGNAL ITS SERIOUSNESS OVER SHRINKING THE 593 BILLION US TRADE DEFICIT WITH JAPAN BUT THE WAY THE LAW IS WRITTEN IT COULD TAKE ALMOST A YEAR BEFORE ANY TRADE SANCTIONS ARE IMPOSED THE US DIDN'T LEAVE ANY DOUBT THAT JAPAN IS THE TARGET OF THIS ACTION MR CLINTON TELEPHONED JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA BEFORE A PUBLIC ANNOUNCEMENT IN THE AFTERNOON IN A CONVERSATION THAT MR CLINTON TERMED A FRIENDLY FORTHRIGHT DISCUSSION US OFFICIALS SAID OTHER WORLD LEADERS WEREN'T NOTIFIED JAPAN DENOUNCED THE US MOVE AS A VIOLATION OF INTERNATIONAL TRADE RULES THE GOVERNMENT OF JAPAN CANNOT KEEP SILENT ITS CONCERNS OVER THIS MOVE SAID CHIEF GOVERNMENT SPOKESMAN MASAYOSHI TAKEMURA NEVERTHELESS MR TAKEMURA SAID JAPAN WOULD OPT FOR A RESTRAINED RESPONSE WHILE PUSHING AHEAD WITH VOLUNTARY MEASURES DESIGNED TO OPEN THE JAPANESE MARKET JAPAN EXPECTS TO ANNOUNCE THOSE MEASURES LATER THIS MONTH BEFORE THE ANNOUNCEMENT PRIME MINISTER HOSOKAWA HAD URGED THE US TO ACT WITH GOOD SENSE NEVERTHELESS OTHER JAPANESE OFFICIALS SAID THE US MOVE COULD PROMPT INCREASING BILATERAL TENSION AND RAISE ANTIUS SENTIMENT IN JAPAN LEADING TO A WIDER TRADE WAR SUCH A UNILATERAL APPROACH TO SOLVING TRADE DISPUTES WILL INVITE RETALIATORY MOVES AND RESULT IN A SHRINKAGE OF WORLD TRADE HIDEAKI KUMANO THE TOP BUREAUCRAT AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID TUESDAY IN THE US FEARS THAT A USJAPANESE TRADE WAR WILL STOKE INFLATION SENT THE BOND MARKET INTO ANOTHER TAILSPIN THE DOLLAR FELL SLIGHTLY AGAINST THE YEN AND GRAIN PRICES SANK AMID SPECULATION THAT THE TRADE TENSIONS MIGHT DISRUPT JAPANESE PURCHASES OF US CROPS YESTERDAY'S EXECUTIVE ORDER RENEWS SUPER 301 FOR TWO YEARS REVIVING A TRADE MEASURE THAT WAS PART OF THE 1988 TRADE ACT BUT WHICH EXPIRED IN 1990 THE TRADE MEASURE WAS INITIALLY INTRODUCED TO SPUR THE BUSH ADMINISTRATION TO EMPLOY TOUGH ACTION AGAINST TRADING PARTNERS THE RENEWAL IS PARTLY MORE RHETORIC THAN ACTION BECAUSE NOTHING SIGNIFICANT WILL HAPPEN UNDER SUPER 301 UNTIL AT LEAST SEPTEMBER AND EVEN THEN THE ACTION WON'T INVOLVE TRADE RETALIATION UNDER THE TRADE MEASURE THE US WILL ASSEMBLE A PRELIMINARY LIST OF TRADING PRACTICES THAT IT CONSIDERS TO BE UNFAIR TO US GOODS US OFFICIALS WILL IDENTIFY THOSE PRACTICES USING FINDINGS FROM THE NATIONAL TRADE ESTIMATES REPORT AN ANNUAL REPORT TO BE RELEASED AT THE END OF THIS MONTH THE ADMINISTRATION WOULD HAVE UNTIL SEPT 30 TO PINPOINT A FINAL LIST AND OFFICIALS SAID THEY WILL MAKE THEIR ANNOUNCEMENT ON THE DEADLINE DAY WITHIN 21 DAYS OF SUBMITTING A REPORT TO CONGRESS THE US WOULD INITIATE AN INVESTIGATION OF THOSE PRACTICES UNDER SECTION 301 OF THE 1988 TRADE ACT IF THE ALLEGED PRACTICES AREN'T RECTIFIED DURING NEGOTIATIONS AND DISPUTERESOLUTION PROCEEDINGS THE US COULD IMPOSE PUNITIVE TARIFFS IN AN AMOUNT EQUAL TO THE ESTIMATED VALUE OF LOST SALES BY US COMPANIES THE TALKS PROBABLY WOULD TAKE MONTHS ALTHOUGH YESTERDAY'S ACTIONS WERE AIMED AT JAPAN OFFICIALS TOOK PAINS NOT TO APPEAR TO BE PROTECTIONIST OR ANTIJAPAN AN INTERNAL TWOPAGE OUTLINE ENTITLED TALKING POINTS ON SUPER 301 EXECUTIVE ORDER SAID THAT IF ASKED WHETHER THE ACTION IS DIRECTED AT JAPAN OFFICIALS SHOULD RESPOND THIS EXECUTIVE ORDER IS NOT DIRECTED AT ANY COUNTRY DEPUTY TREASURY SECRETARY ROGER ALTMAN CARRIED A LIST OF QUESTIONS AND ANSWERS RELATED TO THE EXECUTIVE ORDER THE FIRST QUESTION WAS DOESN'T THE ANNOUNCEMENT OF SUPER 301 ESCALATE THE TRADE WAR WITH JAPAN THE PREPARED ANSWER NO ONE IS INTERESTED IN STARTING A TRADE WAR WITH JAPAN WHEN US TRADE REPRESENTATIVE MICKEY KANTOR ANNOUNCED THE DECISION TO A THRONG OF REPORTERS AND TELEVISION CREWS IN AN AMPHITHEATER HALF A BLOCK FROM THE WHITE HOUSE HE ECHOED THAT POINT IN TOKYO THOUGH JAPANESE OFFICIALS SAID THEY FOUND IRONIC US ATTEMPTS TO PLAY DOWN THE SIGNIFICANCE OF THE MOVE ON THE RIGHT HAND YOU'RE SAYING THERE WON'T BE A TRADE WAR WHILE ON THE LEFT YOU'RE ACTUALLY PUTTING YOUR FINGER ON THE TRIGGER SAID ONE OFFICIAL SUPER 301 HASN'T EVER PRODUCED DEVASTATING CONSEQUENCES IN 1989 WHEN THE TRADE MEASURE WAS INITIATED THE US IDENTIFIED UNFAIR TRADING PRACTICES IN JAPAN INDIA AND BRAZIL THE US SETTLED WITH JAPAN OVER OPENING ITS MARKET TO FOREIGN SATELLITES SUPERCOMPUTERS AND WOOD PRODUCTS BEFORE ANY SANCTIONS WENT INTO PLACE IT REACHED AGREEMENT WITH BRAZIL TOO ON TRADE ISSUES BEFORE ISSUING ANY PUNITIVE MEASURES THE US NEVER RESOLVED ITS PROBLEM WITH INDIA AND SANCTIONS WERE NEVER IMPOSED STILL YESTERDAY'S RENEWAL DIDN'T GO OVER WELL IN BRUSSELS WHERE THE EUROPEAN COMMISSION STRONGLY CRITICIZED THE RENEWAL WE'VE NEVER HIDDEN OUR DISTASTE FOR SUPER 301 AND OTHER SIMILAR UNILATERAL TRADE MEASURES A COMMISSION SPOKESMAN SAID THEY GO AGAINST THE FLOW OF MODERN TRADE POLICY AND THEY TEND TO MAKE MARKETS CLAM UP RATHER THAN PRYING THEM OPEN APART FROM TRYING TO PRESSURE JAPAN THE CLINTON ADMINISTRATION HAS ALSO BEEN UNDER ITS OWN PRESSURE FROM CONGRESS TO GET TOUGH BY RENEWING SUPER 301 THE ADMINISTRATION APPEASES US LAWMAKERS WHO HAVE BEEN SEEKING TO LEGISLATE TOUGH ACTION A SLEW OF LAWMAKERS QUICKLY RESPONDED TO MR KANTOR'S ANNOUNCEMENT WITH STATEMENTS OF SUPPORT SEN MAX BAUCUS D MONT WHO RECENTLY INTRODUCED LEGISLATION TO RENEW SUPER 301 SAID PRESIDENT CLINTON MADE A BOLD AND HISTORIC STATEMENT THERE ARE TOUGHER DECISIONS BY FAR AHEAD FOR THE US IN MIDMARCH FIGURES ARE SUPPOSED TO BE RELEASED SHOWING FOREIGN SEMICONDUCTOR MAKERS' SHARE OF THE JAPANESE MARKET IN THE FOURTH QUARTER OF 1993 THE US SAYS THE SHARE IS SUPPOSED TO HIT 20 AS PART OF A BILATERAL SEMICONDUCTOR AGREEMENT JAPAN DENIES THAT IT HAS TO MEET SUCH A TARGET BY THE END OF MARCH THE ADMINISTRATION IS EXPECTED TO RELEASE A REVIEW OF GOVERNMENT PROCUREMENT OF SUPERCOMPUTERS BY APRIL 30 THE US IS EXPECTED TO NAME GOVERNMENT PROCUREMENT PRACTICES THAT IT CONSIDERS TO BE UNFAIR AGAINST US GOODS AND IT COULD SET UP A SCHEDULE FOR RETALIATION THE ADMINISTRATION COULD INITIATE TRADE RETALIATORY ACTION AGAINST JAPAN UNDER SECTION 301 THE BASIS FOR SUPER 301 BUT SUPER 301 IS CONSIDERED POWERFUL BECAUSE IT SETS A TIME FRAME FOR THE ADMINISTRATION TO IDENTIFY TRADING PRACTICES AS PROBLEMS THE US ALREADY HAS THREATENED JAPAN WITH SANCTIONS BECAUSE OF A DISPUTE OVER MOTOROLA INC'S ACCESS TO JAPAN'S CELLULARTELEPHONE MARKET THAT CASE WHICH IS SEPARATE FROM THE SUPER 301 MATTER SO FAR REPRESENTS THE MAIN US ATTEMPT TO PRESSURE JAPAN INTO ACCEPTING SPECIFIC GOALS FOR OPENING UP ITS MARKETS IN SEVERAL SECTORS OFFICIALS FAMILIAR WITH THE TALKS SAID JAPAN AND THE US GOVERNMENT ARE MAKING STEADY ALBEIT SLOW PROGRESS IN THE CASE ON AUTO TRADE JAPAN'S LARGEST CAR MAKER MOVED TO HEAD OFF SANCTIONS BY OFFERING A COMPROMISE SHOICHIRO TOYODA CHAIRMAN OF TOYOTA MOTOR CORP SAID THE COMPANY WOULD BE WILLING TO SET TARGETS FOR PURCHASES OF US AUTO PARTS AS LONG AS IT WOULDN'T FACE THE THREAT OF SANCTIONS IF THOSE TARGETS WEREN'T MET IT ISN'T CLEAR HOWEVER WHETHER A NONBINDING TARGET WOULD SATISFY WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER LEAVES TODAY ON AN ASIAN TRIP THAT INCLUDES A STOP IN TOKYO WINSTON LORD THE DEPARTMENT'S ASSISTANT SECRETARY FOR EAST ASIAN AFFAIRS SAID MR CHRISTOPHER WOULD BE EMPHASIZING THAT WE HAVE GOT TO OPEN UP THE JAPANESE MARKET AND WE'VE GOT TO GET AT THESE GLOBAL IMBALANCES BUT MR LORD SAID THE SECRETARY OF STATE ISN'T GOING AS A NEGOTIATOR BECAUSE THERE'S NOTHING TO NEGOTIATE ABOUT AT THIS POINT MICHAEL WILLIAMS IN TOKYO CONTRIBUTED TO THIS ARTICLE 9403040037 940304 BUSINESS BRIEF GAP'S MORE FASHIONABLE APPAREL BOOSTS RETAILER'S FOURTHPERIOD PROFIT BY 66 A STRATEGY OF INTRODUCING MORE FASHIONABLE CLOTHING HELPED PROPEL GAP INC'S FISCAL FOURTHQUARTER PROFIT UP 66 INDICATING THAT THE ONCE HIGHFLYING COMPANY IS EMERGING FROM A RECENT SLUMP IN THE QUARTER ENDED JAN 29 GAP REPORTED NET INCOME OF 1093 MILLION OR 75 CENTS A SHARE UP FROM YEARAGO EARNINGS OF 657 MILLION OR 46 CENTS A SHARE SALES ROSE 14 TO 106 BILLION FROM 9302 MILLION THE STRONG RESULTS REMINDED SOME ANALYSTS OF THE 1991 FOURTH QUARTER WHEN GAP REALLY KNOCKED THE COVER OFF THE BALL SAID ANALYST ROBERT BUCHANAN OF ALEX BROWN & SONS PEOPLE THOUGHT THEY'D NEVER AGAIN ATTAIN THAT KIND OF LEVEL ENCOURAGED INVESTORS SENT THE STOCK UP 1125 TO 46125 IN BIG BOARD TRADING YESTERDAY AFTERNOON GAP HAS STRUGGLED AS CONSUMERS TIRED OF ITS BASIC UNISEX CLOTHING AND AS COPYCAT COMPETITORS SOLD SIMILAR ITEMS FOR LESS THE COMPANY HAD TO MARK DOWN MUCH OF ITS CLOTHING WHILE INVENTORY PILED UP THE SAN FRANCISCOBASED RETAILER BEGAN TO REINVENT ITSELF IN THE FALL HOWEVER OFFERING SUCH UNCHARACTERISTICALLY FASHIONABLE ITEMS AS VELVET LEGGINGS GAP HAD A VERY SUCCESSFUL TRANSITION INTO FASHION AT JUST THE TIME THE CONSUMER WAS LOOKING FOR SOME SAID ANALYST THOMAS TASHJIAN OF FIRST MANHATTAN SNAZZIER ITEMS SUCH AS LEATHER VESTS AND LONG CREPE SKIRTS ARE TURNING OVER MORE QUICKLY AND SELLING AT A HIGHER PROFIT MARGIN THAN GAP'S BASIC COMMODITY APPAREL THE COMPANY ALSO IS MARKING DOWN FEWER ITEMS BECAUSE IT LOWERED INVENTORY PER SQUARE FOOT BY 20 IN THE QUARTER AS A RESULT GAP'S GROSS MARGIN THE DIFFERENCE BETWEEN THE COST OF GOODS AND THE GOODS SOLD CLIMBED A WHOPPING 650 BASIS POINTS FROM THE 1992 FOURTH QUARTER ALTHOUGH GAP DOESN'T BREAK DOWN RESULTS BY DIVISION ANALYSTS PROJECT THAT SAMESTORE SALES THOSE AT STORES OPENED AT LEAST A YEAR ROSE 12 AT THE GAPKIDS DIVISION AND 2 AT BOTH BANANA REPUBLIC AND THE FLAGSHIP GAP UNITS FOR THE YEAR GAP'S NET INCOME ROSE 23 TO 2584 MILLION OR 178 A SHARE FROM 2107 MILLION OR 147 A SHARE IN THE PRIOR YEAR SALES ROSE 11 TO 33 BILLION FROM 296 BILLION THE 1370STORE RETAILER PLANS TO EXPAND RAPIDLY IN 1994 WITH 185 TO 200 NEW STORES AND AS MANY AS 45 MORE OF ITS WAREHOUSECONCEPT STORES NOW CALLED OLD NAVY CLOTHING CO WHICH SELL LOWERPRICED LINES 9403040036 940304 BUSINESS BRIEF MERRYGOROUND ENTERPRISES INC FEBRUARY SALES SLIPPED 4 AT SPECIALTY APPAREL RETAILER MERRYGOROUND ENTERPRISES INC SAID FEBRUARY SALES FELL 4 TO 51 MILLION FROM 53 MILLION A YEAR EARLIER WHILE SALES AT STORES OPEN AT LEAST A YEAR FELL 23 THE SPECIALTY CLOTHING RETAILER WHICH IS BASED IN JOPPA MD FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN JANUARY IT SAID THE DISAPPOINTING SALES REFLECTED CONTINUED LOW INVENTORY LEVELS AS WELL AS FREQUENT WINTER STORMS INVENTORY LEVELS HAVE IMPROVED SLOWLY SINCE THE CHAPTER 11 FILING IT SAID SAMESTORE SALES WILL CONTINUE TO SHOW SIGNIFICANT DECLINES WHILE INVENTORY REMAINS BELOW PLANNED LEVELS MERRYGOROUND SAID IT IS OPTIMISTIC ABOUT THE IMPROVING RELATIONSHIPS WITH VENDORS AND FACTORS WHO PROVIDE FUNDS SECURED BY ACCOUNTS RECEIVABLE BUT IT WILL TAKE A FEW MONTHS FOR THE INVENTORY LEVELS TO REBOUND 9403040035 940304 LETTERS TO THE EDITOR WINKLER WAS GREAT AS PARODY OF LIBERAL REGARDING THE FEB 8 LEISURE & ARTS PIECE ON HENRY WINKLER IN WHICH HE ANSWERS A SERIES OF POLITICAL AND CULTURAL QUESTIONS BOTH AS HIMSELF AND AS HIS FARRIGHT TV PERSONA MONTY I'LL HAVE TO ADMIT THAT HE DID AN EXCELLENT THOROUGH AND PRECISE PARODY OF A LIBERAL SPEAKING AS HIMSELF HE SOUNDED OFF WITH ALL THE FAMILIAR PREJUDICES AND TIMEWORN CLICHES THAT LIBERALS THINK ARE ORIGINAL ONE COULD ALMOST HEAR THE SANCTIMONY AND SELFRIGHTEOUSNESS SEETHING THROUGH HIS VOICE MAKING US WISH FOR THE RETURN OF FONZIE IF ONLY TO BURY HENRY WINKLER UNDER HIS LAYERS OF GREASE AS FOR THE ACTING PART IN WHICH HE PLAYED A CONSERVATIVE ALL I CAN SAY IS THAT HE NEEDS TO STUDY HIS SUBJECT I KNOW MANY PEOPLE HE WOULD BRAND FARRIGHT EXTREMISTS AND THEY DON'T BELIEVE ANYTHING REMOTELY RESEMBLING WHAT HE IMPUTES TO THEM NATURALLY I RECOGNIZE THAT HE WAS ATTEMPTING TO BE FUNNY BUT AS ANYONE WHO HAS EVER BEEN BORED BY AN AFTERMIDNIGHT SATURDAY NIGHT LIVE SKIT WILL ATTEST GOOD HUMOR ALWAYS HAS ITS BASIS IN REALITY I'M ALWAYS AMUSED TO SEE AN ACTOR FROM THE NORTH OR WEST PLAYING A SOUTHERNER AND GIVING HIMSELF OR HERSELF AWAY BY SUCH TELLTALE GOOFS AS CONFUSING Y'ALL WITH THE SECONDPERSON SINGULAR IN MR WINKLER'S CASE ANYONE CAN RECOGNIZE THAT THE WHOLE MONTY ACT IS SIMPLY A PUTDOWN OF THE DREADED RUSH LIMBAUGH PERHAPS LIKE OTHERS WHO IMAGINE THAT MR LIMBAUGH IS AS INTOLERANT AS THEY ARE HE'S NEVER LISTENED TO THE SHOW 9403040034 940304 BUSINESS BRIEF VICTORIA FINANCIAL CORP CLAIMS FROM BAD WEATHER TO HURT 1STQUARTER PROFIT VICTORIA FINANCIAL CORP SAID A HIGHERTHANANTICIPATED NUMBER OF CLAIMS STEMMING FROM BRUTAL WINTER WEATHER WILL ADVERSELY AFFECT ITS FIRSTQUARTER EARNINGS THE CLEVELAND SPECIALTY INSURANCE COMPANY SAID HEAVY SNOW ICE AND FRIGID TEMPERATURES CREATED HAZARDOUS ROAD CONDITIONS CONTRIBUTING TO THE HIGH NUMBER OF AUTO INSURANCE CLAIMS IN JANUARY AND FEBRUARY THE COMPANY SAID SALES VOLUME HAS BEEN IMPROVING HOWEVER AND IT EXPECTS THAT TREND TO CONTINUE VICTORIA WHICH SPECIALIZES IN NONSTANDARD AUTOMOBILE INSURANCE HAD NET INCOME OF 521000 OR EIGHT CENTS A SHARE ON REVENUE OF 111 MILLION IN THE 1993 FIRST QUARTER 9403040033 940304 POLITICS & POLICY WHITEWATER IS STARTING TO HAVE DIVERSE IMPACT FIRST KEY VICTIM COULD BE WHITE HOUSE COUNSEL BY JEFFREY H BIRNBAUM AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SWIRLING WHITEWATER SCANDAL IS BEGINNING TO HURT THE CLINTON ADMINISTRATION ON MANY FRONTS THE FIRST MAJOR VICTIM COULD BE WHITE HOUSE COUNSEL BERNARD NUSSBAUM MANY IN THE WHITE HOUSE BELIEVE HE HAS MISHANDLED A SERIES OF WHITEWATERRELATED MATTERS AND WILL HAVE TO GO IN ADDITION THE PARTISAN WATERS OF CONGRESS HAVE GOTTEN SO ROILED THAT AN IMPORTANT NOMINATION AND THE PRESIDENT'S LEGISLATIVE AGENDA APPEAR TO BE UNDER THREAT EVEN THE PRESIDENT'S ALLIES ARE BEGINNING TO SEPARATE THEMSELVES FROM THE WHITE HOUSE IN PARTICULAR TREASURY SECRETARY LLOYD BENTSEN ASKED THE OFFICE OF GOVERNMENT ETHICS TO REVIEW THREE MEETINGS BETWEEN TOP TREASURY OFFICIALS AND WHITE HOUSE AIDES REGARDING POSSIBLE RESOLUTION TRUST CORP LAWSUITS IN A CASE INVOLVING A FAILED ARKANSAS THRIFT MR NUSSBAUM WAS PRESENT AT ALL THREE MEETINGS DEPUTY SECRETARY ROGER ALTMAN WHO IS ALSO INTERIM RTC CHIEF AND GENERAL COUNSEL JEAN HANSON ARE AMONG THE OFFICIALS SUBJECT TO THE REVIEW IN A MORE PARTISAN ACTION SENATE REPUBLICANS VOWED TO BLOCK CONFIRMATION OF THE FEDERAL DEPOSIT INSURANCE CORP CHAIRMAN UNTIL DEMOCRATS AGREE TO HOLD HEARINGS ON THE CIRCUMSTANCES THAT LED TO THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN WHICH HAS BEEN LINKED TO BILL AND HILLARY RODHAM CLINTON'S POLITICAL AND BUSINESS DEALINGS IN ARKANSAS TOP ADMINISTRATION OFFICIALS SAID THEY COULDN'T SEE HOW MR NUSSBAUM WILL BE ABLE TO REMAIN IN THE WAKE OF DISCLOSURES ABOUT THE QUESTIONABLE MEETINGS WITH REGULATORS WHO ARE PROBING THE CLINTONS' WHITEWATER REALESTATE INVESTMENT EVEN MR CLINTON CRITICIZED THE MEETINGS WHEN ASKED ABOUT THEM WHILE SAYING NEARLY AS I CAN DETERMINE NOBODY HAS DONE ANYTHING WRONG OR ATTEMPTED TO IMPROPERLY INFLUENCE ANY GOVERNMENT ACTION THE PRESIDENT ADDED I THINK IT WOULD BE BETTER IF THE MEETINGS AND CONVERSATIONS HADN'T OCCURRED LAST NIGHT THE WHITE HOUSE PUBLICLY DEFENDED MR NUSSBAUM THE PRESIDENT HAS CONFIDENCE IN MR NUSSBAUM HE'S DONE GOOD THINGS SAID MARK GEARAN THE WHITE HOUSE COMMUNICATIONS DIRECTOR MR NUSSBAUM COULDN'T BE REACHED FOR COMMENT MR NUSSBAUM HAS HAD A NOTABLY CALAMITOUS TOUR OF DUTY ALTHOUGH HE HELPED CHOOSE TWO OFTENPRAISED CLINTON APPOINTEES SUPREME COURT JUSTICE RUTH BADER GINSBERG AND FBI DIRECTOR LOUIS FREEH HE ALSO HAS WEATHERED HEAVY CRITICISM FOR HIS ROLE IN THE AFTERMATH OF THE FIRING OF THE WHITE HOUSE TRAVEL OFFICE THE FAILED ZOE BAIRD NOMINATION FOR ATTORNEY GENERAL THE ABORTIVE NOMINATION OF LANI GUINIER TO BE THE JUSTICE DEPARTMENT'S CIVILRIGHTS CHIEF AND MORE PROMINENTLY HIS REMOVAL OF WHITEWATER FILES FROM THE OFFICE OF HIS DEPUTY VINCENT FOSTER AFTER HIS SUICIDE LAST SUMMER WHITE HOUSE INSIDERS SAID THAT ALTHOUGH HE HASN'T BEEN ACCUSED OF DOING ANYTHING ILLEGAL HIS ACTIONS HAVE LEFT THE IMPRESSION THAT THE WHITE HOUSE WAS STALLING AND EVEN STONEWALLING IN MATTERS RELATED TO WHITEWATER AND MR FOSTER'S DEATH THE APPEARANCE PROBLEM WAS IRONIC GIVEN MR NUSSBAUM'S STINT IN WASHINGTON AS A SENIOR STAFFER ON THE WATERGATE COVERUP INVESTIGATION IN THE HOUSE THE ETHICS INQUIRY INITIATED BY SECRETARY BENTSEN ADDS A NEW ELEMENT TO THE MADISON CASE IT'S THE FIRST ADMINISTRATION ACKNOWLEDGEMENT THAT DEPARTMENT OFFICIALS MAY HAVE BREACHED TREASURY RULES DESIGNED TO PROTECT THE INDEPENDENCE OF FINANCIAL AGENCIES THE RTC SELLS OFF THE ASSETS OF FAILED THRIFTS AND OFTEN SUES LAWYERS ACCOUNTANTS AND THRIFT OFFICERS WHO MAY HAVE CONTRIBUTED TO THE THRIFT'S FAILURE WHITE HOUSE AND TREASURY OFFICIALS CONFIRMED A WASHINGTON POST REPORT THAT TREASURY OFFICIALS HAD DISCUSSED THE RTC'S INVESTIGATION OF MADISON TWICE LAST FALL WITH WHITE HOUSE OFFICIALS THE WHITE HOUSE SAID THAT AT A SEPT 29 MEETING MS HANSON TOLD MR NUSSBAUM THAT CRIMINAL REFERRALS AGAINST MADISON HAD BEEN PREPARED BY THE RTC FOR CONSIDERATION BY THE JUSTICE DEPARTMENT ON OCT 14 MS HANSON AND MR NUSSBAUM MET WITH OTHER WHITE HOUSE AND TREASURY OFFICIALS ALTHOUGH MR AND MRS CLINTON WERE MENTIONED IN THE RTC'S CRIMINAL REFERRAL THEY'RE NOT TARGETS OF THE INQUIRY ACCORDING TO THE POST MR CLINTON HAS DENIED ANY WRONGDOING A SPECIAL COUNSEL IS INVESTIGATING THE FAILURE OF MADISON AND ITS CONNECTION IF ANY TO WHITEWATER DEVELOPMENT CO A NORTH ARKANSAS LAND VENTURE OWNED BY THE CLINTONS AND THE FORMER OWNER OF MADISON AND HIS WIFE THE DISCLOSURE OF LAST FALL'S MEETINGS FOLLOW TESTIMONY BY MR ALTMAN WHO TOLD THE SENATE BANKING COMMITTEE LAST WEEK THAT HE HAD RECENTLY DISCUSSED WITH MR NUSSBAUM THE STATUTE OF LIMITATIONS ON RTC CIVIL ACTIONS INVOLVING MADISON MR ALTMAN HAS RECUSED HIMSELF FROM FURTHER CONSIDERATION OF MADISON YESTERDAY HE SAID HE DISCUSSED ONLY PUBLIC INFORMATION AND THAT THE TREASURY'S ETHICS OFFICER HAD CLEARED THE MEETING THE GOP'S DECISION TO BLOCK A VOTE ON THE NOMINATION OF RICKI TIGERT TO HEAD THE FDIC SHOWS THAT THE PARTISAN BICKERING COULD SLOW PRESIDENTIAL APPOINTMENTS AND MORE IMPORTANT STOP LEGISLATION MS TIGERT WAS PARTICULARLY VULNERABLE TO BEING TAKEN AS A POLITICAL HOSTAGE BECAUSE SHE IS AN ACQUAINTANCE OF MRS CLINTON'S AND IN LINE TO HEAD A BANKSUPERVISORY AGENCY REPUBLICANS CHARGE THAT THE WHITE HOUSE IS TRYING TO EXERT POLITICAL CONTROL OVER BANK REGULATORS TO CHOKE OFF INVESTIGATIONS INTO THE CIRCUMSTANCES SURROUNDING THE 1989 FAILURE OF MADISON IN THIS CLIMATE OF CONCERN ABOUT THE INTEGRITY OF OUR FINANCIAL SYSTEM IT IS ABSOLUTELY ESSENTIAL THAT THE PUBLIC HAVE COMPLETE CONFIDENCE IN OUR INDEPENDENT BANK REGULATORY SYSTEM SAID SEN ALFONSE D'AMATO R NY AT A BANKING COMMITTEE HEARING ON AN ADMINISTRATION PLAN TO CONSOLIDATE BANK REGULATORY AGENCIES MR D'AMATO ANNOUNCED THAT 43 REPUBLICAN SENATORS HAVE SIGNED A LETTER PLEDGING TO BLOCK CONSIDERATION OF THE TIGERT NOMINATION UNTIL THE COMMITTEE HAS AN OPPORTUNITY TO THOROUGHLY EXAMINE THE RTC'S HANDLING OF A CIVIL INVESTIGATION INTO MADISON BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH HAS REFUSED TO HOLD EXTENSIVE HEARINGS CITING THE SPECIAL COUNSEL'S INVESTIGATION THE WHITE HOUSE REACTED ANGRILY TO THE HOLDUP OF THE TIGERT NOMINATION WHICH WAS CLEARED BY THE SENATE BANKING COMMITTEE 161 IT'S UNFORTUNATE THAT THE SENATE IS GOING TO PLAY POLITICS WITH THIS SAID SPOKESWOMAN DEE DEE MYERS WE'LL COOPERATE WITH THE SPECIAL COUNSEL AND THE ETHICS OFFICE IN THE MEANTIME THE SENATE OUGHT TO GET ON WITH THE BUSINESS OF DEBATING THESE APPOINTMENTS AND DEBATING ISSUES THAT MATTER TO THE FUTURE OF THIS COUNTRY MR D'AMATO SUGGESTED THAT GOP OPPOSITION WON'T STOP WITH THE TIGERT CONFIRMATION WE'RE NOT GOING TO LET THIS MATTER REST HE SAID AT NEWS CONFERENCE THE ADMINISTRATION HAS BEEN STUNG MR BENTSEN INSTRUCTED TREASURY OFFICIALS TO HAVE NO CONTACT WITH THE WHITE HOUSE ABOUT THIS CASE HE NOTED POINTEDLY THAT I DID NOT ATTEND ANY OF THESE MEETINGS NOR WAS I INFORMED OF MANY OF THESE MEETINGS WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY ISSUED A TWOPARAGRAPH MEMO OUTLINING THE RULES ABOUT CONTACTS WITH OUTSIDE AGENCIES REGARDING WHITEWATER NO CONTACT BY THE WHITE HOUSE WITH EXECUTIVE BRANCH OR INDEPENDENT AGENCIES REGARDING THESE MATTERS SHOULD BE MADE WITHOUT PRIOR AUTHORIZATION FROM THE DEPUTY COUNSEL THE MEMO STATED MR CLINTON SAID WE WILL BEND OVER BACKWARD TO AVOID NOT ONLY THE FACT BUT ANY APPEARANCE OF IMPROPRIETY SEPARATELY THE FULL FEDERAL BUREAU OF INVESTIGATION BACKGROUND REPORT ON ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WAS SENT TO THE SENATE JUDICIARY COMMITTEE FOLLOWING A REQUEST BY REPUBLICAN SENS STROM THURMOND OF SOUTH CAROLINA AND CHARLES GRASSLEY OF IOWA AT THE TIME OF MR HUBBELL'S CONFIRMATION HEARING LAST YEAR ONLY A SUMMARY OF THE REPORT AS IS THE GENERAL PRACTICE WAS AVAILABLE TO THE COMMITTEE A JUSTICE DEPARTMENT SPOKESMAN SAID THERE IS NOTHING IN THE DOCUMENT ABOUT A REPORTED INVESTIGATION INTO MR HUBBELL'S BILLING PRACTICES WHEN HE WAS WITH THE ROSE LAW FIRM BECAUSE THE SPOKESMAN SAID THERE WAS NO INVESTIGATION 9403040032 940304 BUSINESS BRIEF CASINO AMERICA INC FISCAL THIRDPERIOD EARNINGS OVER ESTIMATES TO BE POSTED CASINO AMERICA INC EXPECTS TO REPORT NET INCOME FOR ITS FISCAL THIRD QUARTER ENDED JAN 31 IN EXCESS OF 6 MILLION OR BETWEEN 57 CENTS AND 60 CENTS A SHARE JULIE WATT CHIEF FINANCIAL OFFICER SAID MS WATT ADDED THAT SHE EXPECTS THE BOCA RATON FLA RIVERBOAT GAMBLING COMPANY TO SHOW QUARTERLY REVENUE BETWEEN 39 MILLION AND 41 MILLION THE RESULTS EXPECTED TO BE ANNOUNCED NEXT WEEK EXCEED PROJECTIONS OF FINANCIAL ANALYSTS WHO WERE LOOKING FOR PERSHARE NET OF 45 CENTS TO 50 CENTS IN THE THIRD QUARTER A YEAR AGO CASINO AMERICA EARNED 47 MILLION OR 46 CENTS A SHARE ON REVENUE OF 209 MILLION IN FISCAL 1993 CASINO AMERICA OPERATED ONLY ONE RIVERBOAT CASINO LOCATED IN BILOXI MISS IT OPENED A FACILITY IN VICKSBURG MISS LAST AUGUST AND PLANS TO OPEN A THIRD CASINO IN BOSSIER CITY LA NEXT MONTH 9403040031 940304 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED FEB 25 ACCOUNTED FOR 79 OR AN AVERAGE 237 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 81 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 453 INVOLVED STOCKINDEX ARBITRAGE UP FROM 431 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 651 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 298 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 51 WAS DESIGNATED AS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF UBS SECURITIES NOMURA SECURITIES AND KIDDER PEABODY EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9403040030 940304 BUSINESS BRIEF LESLIE FAY COS BANKRUPTCY COURT APPROVES LICENSING OF HUE LEGWEAR LESLIE FAY COS NEW YORK SAID IT LICENSED ITS HUE BRAND TO KAYSERROTH CORP FOR CASUAL LEGWEAR AND SHEER HOSIERY IN THE US UNITED KINGDOM MEXICO CANADA AND ARGENTINA LESLIE FAY WHICH IS OPERATING UNDER CHAPTER 11 RECEIVED BANKRUPTCY COURT APPROVAL FOR THE AGREEMENT KAYSERROTH CORP ALSO AGREED TO PURCHASE CERTAIN EXISTING HUE INVENTORIES AND OTHER ASSETS TERMS WEREN'T DISCLOSED HUE HAD SALES OF ABOUT 22 MILLION LAST YEAR LESLIE FAY RETAINED THE RIGHT TO DEVELOP THE HUE NAME IN OTHER PRODUCTS KAYSERROTH OF GREENSBORO NC IS A SUBSIDIARY OF LEGWEAR HOLDING INC A HOLDING COMPANY CONTROLLED BY MEXICAN INVESTORS INCLUDING MEXICO CITYBASED GRUPO SYNKRO SA DE CV 9403040029 940304 BUSINESS BRIEF FUTURE COMMUNICATIONS INC SHAREHOLDER COMMITTEE ASKS COURT TO APPOINT TRUSTEE A COMMITTEE REPRESENTING FUTURE COMMUNICATIONS INC'S SHAREHOLDERS ASKED THE US BANKRUPTCY COURT TO APPOINT AN INDEPENDENT TRUSTEE TO OVERSEE THE COMPANY'S OPERATIONS IN A COURT FILING THE COMMITTEE ACCUSED OFFICIALS OF THE DALLAS CABLE TELEVISION AND PROGRAMMING COMPANY OF THWARTING THE COMMITTEE'S EFFORTS TO LEARN MORE ABOUT THE COMPANY'S CONDITION FUTURE'S BANKRUPTCY ATTORNEY SAID HE EXPECTS THE COMPANY WILL OPPOSE THE APPOINTMENT OF AN INDEPENDENT TRUSTEE HE SAID THE COMPANY FAVORS ITS REORGANIZATION PLAN UNDER WHICH IT WOULD SELL ITS ASSETS TO TWO TINY COMPANIES OWNED IN PART BY THE FAMILY OF ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE SERGIO BOSCO FUTURE FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN NOVEMBER AFTER THE SECURITIES AND EXCHANGE COMMISSION SUED THE COMPANY AND MR BOSCO FOR ALLEGEDLY FRAUDULENTLY INFLATING ITS STOCK PRICE 9403040028 940304 BUSINESS BRIEF BROWN GROUP INC LOSS FOR FISCAL FOURTH PERIOD OF 534 MILLION IS REPORTED BROWN GROUP INC REPORTED A LOSS OF 534 MILLION OR 307 A SHARE FOR ITS FISCAL FOURTH QUARTER REFLECTING WHAT IT SAID WAS THE END OF A LENGTHY RESTRUCTURING PROGRAM SALES ROSE 64 TO 3819 MILLION FOR THE FULL YEAR ENDED JAN 29 BROWN REPORTED A LOSS OF 316 MILLION OR 183 A SHARE COMPARED WITH PROFIT OF 46 MILLION OR 27 CENTS A SHARE A YEAR EARLIER FOURTHQUARTER CHARGES OF 295 MILLION RESULTED FROM THE CLOSINGS OF FIVE SHOE FACTORIES AND MORE THAN 100 COMPANYOWNED CONNIE AND REGAL SPECIALTY STORES AND FROM RELATED PERSONNEL AND INVENTORY EXPENSES THE COMPANY ALSO TOOK A FOURTHQUARTER CHARGE OF 244 MILLION FOR DISPOSAL OF ITS LEASED SHOEDEPARTMENT BUSINESS AFTER A DECADE IN WHICH THE ST LOUIS COMPANY CLOSED MORE THAN 2400 RETAIL STORES AND LEASEDDEPARTMENT OPERATIONS AND 24 FACTORIES BROWN SAID ITS EXTENDED RESTRUCTURING IS ESSENTIALLY COMPLETED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BROWN CLOSED AT 35 A SHARE UP 25 CENTS 9403040027 940304 WHO'S NEWS MS CARRIERS INC MS CARRIERS INC MEMPHIS TENN CARL MUNGENAST 53 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THIS TRUCKING COMPANY MR MUNGENAST HAD BEEN VICE PRESIDENT FOR SEARS LOGISTICS SERVICES HE SUCCEEDS DARRYL JACKSON 40 WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS 9403040026 940304 BARGAINING IN LITTLE ROCK FOLLOWING IS AN EXCHANGE OF CORRESPONDENCE BETWEEN RANDY COLEMAN ATTORNEY FOR DAVID HALE AND PAULA CASEY US ATTORNEY IN LITTLE ROCK JUST PRIOR TO THE SEPTEMBER INDICTMENT OF MR HALE FOR FRAUD CONCERNING THE SMALL BUSINESS INVESTMENT CORP HE MANAGED ONE OF MR HALE'S LOANS WAS FOR 300000 TO A CONCERN OWNED BY SUSAN MCDOUGAL A PARTNER WITH HER HUSBAND AND BILL AND HILLARY CLINTON IN WHITEWATER DEVELOPMENT CORP SOME 110000 OF THIS MONEY REPORTEDLY ENDED UP IN THE WHITEWATER ACCOUNT MS CASEY A LONGTIME ASSOCIATE OF THE CLINTONS APPOINTED TO HER POST WHEN THE INCOMING ADMINISTRATION FIRED ALL SITTING US ATTORNEYS SUBSEQUENTLY RECUSED HERSELF FROM THE CASE BECAUSE OF HER ASSOCIATION WITH SOME OF THE INDIVIDUALS INVOLVED INDEPENDENT COUNSEL ROBERT FISKE HAS OBTAINED A SUPERSEDING INDICTMENT AND IS PROSECUTING MR HALE AS HIS FIRST COURT CASE THIS LETTER IS WRITTEN AS A FOLLOW UP TO OUR RECENT PERSONAL PHONE CONVERSATIONS FLETCHER JACKSON OF YOUR OFFICE HAS PREVIOUSLY TOLD ME THAT MR HALE WILL BE INDICTED ON ONE OR MORE CHARGES ON THE THIRD TUESDAY OF SEPTEMBER BEING SEPTEMBER 21 1993 SINCE FIRST BECOMING INVOLVED IN THIS MATTER APPROXIMATELY FIVE 5 WEEKS AGO AND BEING INFORMED OF THIS ANTICIPATED EVENT I HAVE BEEN ATTEMPTING TO REACH SOME FORM OF NEGOTIATED PLEA WITH YOUR OFFICE WITHOUT ANY SUCCESS I CANNOT HELP BUT SENSE THE RELUCTANCE IN THE US ATTORNEY'S OFFICE TO ENTER INTO PLEA NEGOTIATIONS IN THIS CASE I CANNOT HELP BUT BELIEVE THAT THIS RELUCTANCE IS BORNE SIC OUT OF THE POTENTIAL POLITICAL SENSITIVITY AND FALLOUT REGARDING THE INFORMATION WHICH MR HALE COULD PROVIDE TO YOUR OFFICE BUT AT THE SAME TIME IT IS INFORMATION WHICH WOULD BE OF SUBSTANTIAL ASSISTANCE IN INVESTIGATING THE BANKING AND BORROWING PRACTICES OF SOME INDIVIDUALS IN THE ELITE POLITICAL CIRCLES OF THE STATE OF ARKANSAS PAST AND PRESENT I CAN CERTAINLY UNDERSTAND THE RELUCTANCE OF ANYONE LOCALLY TO ENGAGE IN THESE MATTERS POLITICAL REALITIES BEING WHAT THEY ARE WOULD IT NOT BE APPROPRIATE AT THIS POINT FOR YOUR OFFICE TO CONSIDER TERMINATING PARTICIPATION IN THIS INVESTIGATION AND TO BRING IN AN INDEPENDENT PROSECUTORIAL STAFF WHO ARE NOT SO INVOLVED WITH THE HISTORY OF THE PERSONALITIES AND CIRCUMSTANCES OF THIS CASE SUCH ACTION MIGHT SERVE YOUR OFFICE BETTER IT WOULD CERTAINLY SERVE MR HALE BETTER BECAUSE I FEEL THAT HE IS BEING PREJUDICED BY NOT BEING AFFORDED OPPORTUNITIES THAT OTHER TARGETS OF A POTENTIAL CRIMINAL PROSECUTION ARE AFFORDED IN THE PROCESS OF PLEA NEGOTIATIONS I DID TELL YOU THAT IF MR HALE WAS WILLING TO OFFER SUBSTANTIAL ASSISTANCE IN THE PROSECUTION OF OTHER DEFENDANTS I WOULD CONSULT WITH MY LITIGATION COMMITTEE ABOUT REQUESTING A MOTION AUTHORIZING A REDUCTION IN SENTENCE THE MOTION TO REDUCE SENTENCES COMES ONLY AFTER A PLEA OF GUILTY TO FELONY CHARGES IF YOUR CLIENT IS INTERESTED IN COOPERATING IN EXCHANGE FOR SUCH A REDUCTION HE MUST MAKE HIMSELF AVAILABLE TO FEDERAL AGENTS FOR QUESTIONING SO THAT WE CAN DETERMINE WHETHER HIS PROFFER MERITS SUCH A MOTION I WILL BE PLEASED TO ARRANGE SUCH AN INTERVIEW AT YOUR EARLIEST CONVENIENCE THE FACT THAT I AM NOT WILLING TO ENTER INTO ANY OTHER AGREEMENT WITH MR HALE SHOULD NOT BE CONSTRUED AS RELUCTANCE ON MY PART TO PROSECUTE ANY INDIVIDUAL WHEN THE SITUATION MERITS PROSECUTION APPARENTLY WE ARE NOT GOING TO ACHIEVE ANYTHING FURTHER ON PLEA NEGOTIATIONS IN THIS CASE AT THE PRESENT TIME TIME IS BECOMING A PRECIOUS COMMODITY WHILE WE DO NOT FEEL THAT THE GOVERNMENT SHOULD PROCEED WITH AN INDICTMENT AGAINST DAVE HALE WE WOULD SUGGEST THAT ANY RETURN OF THE INDICTMENT BE SEALED TO ALLOW THE SIDES FURTHER TIME TO NEGOTIATE A DIFFICULT SITUATION EARLIER TODAY I PHONED YOU AND REQUESTED THAT YOU PROVIDE A PROFFER OF ANY INFORMATION YOUR CLIENT WISHED TO BRING TO OUR ATTENTION YOU HAVE RESPONDED BY LETTER DATED THIS DATE IN WHICH YOU INDICATED THAT YOU DID NOT BELIEVE WE WILL ACHIEVE ANYTHING FURTHER IN PLEA NEGOTIATIONS AS YOU ACKNOWLEDGED YOUR LETTER WAS IN RESPONSE TO OUR EARLIER PHONE CONVERSATION OUR POSITION IS AS WE HAVE STATED TO YOU BEFORE THAT IS WE ARE FULLY INTERESTED IN ALL INFORMATION YOUR CLIENT HAS TO OFFER BECAUSE OF HIS SIGNIFICANT INVOLVEMENT IN CRIMINAL ACTIVITY IT IS UNACCEPTABLE TO US TO GRANT HIM IMMUNITY WE ARE WILLING TO PROVIDE YOUR CLIENT WITH A MOTION AUTHORIZING REDUCTION OF SENTENCE FOR SUBSTANTIAL ASSISTANCE UPON HIS PLEA OF GUILTY TO A FELONY CHARGE OF FRAUD AND HIS PROVIDING THE SUBSTANTIAL ASSISTANCE OF COURSE TO DATE YOUR CLIENT HAS OFFERED NO TANGIBLE INFORMATION ON WHICH ANY SUCH ARRANGEMENT COULD YET BE MADE MY UNDERSTANDING OF YOUR LETTER IS THAT HE CHOOSES NOT TO DO SO AT THIS TIME WE SEE NO REASON NOT TO PROCEED WITH THE PRESENTATION OF OUR CASE TO THE GRAND JURY AND OUR OTHER NORMAL PROCESS OF HANDLING GRAND JURY MATTERS SHOULD THE GRAND JURY DECIDE TO INDICT YOUR CLIENT WE WILL REMAIN READY TO LISTEN TO ANY PROFFER YOU OR YOUR CLIENT HAVE TO OFFER AND GO FORWARD ON THE BASIS THAT WE HAVE OUTLINED ABOVE THANK YOU FOR YOUR LETTER OF SEPTEMBER 20 1993 THE PROCEDURES PROPOSED THEREIN ARE AN ELEVENTH HOUR ATTEMPT TO DO WHAT COULD AND SHOULD HAVE BEEN DONE SEVERAL WEEKS AGO GIVEN SOME PROPER INDUCEMENT TO MR HALE I PREVIOUSLY INDICATED TO YOUR OFFICE THAT WE WERE WILLING TO LISTEN TO REASONABLE PROPOSALS OTHER THAN IMMUNITY FOR SOME TIME BUT DID NOT RECEIVE ANY CONCRETE OFFERS ALSO I HAVE PREVIOUSLY INDICATED TO FLETCHER JACKSON SOME TIME AGO VERY DEFINITIVE AREAS IN WHICH MR HALE HAD KNOWLEDGE AND ALSO REVIEWED A LIST OF NAMES INVOLVED AS WELL I MADE IT KNOWN THAT MR HALE WAS WILLING TO PARTICIPATE IN UNDERCOVER OPERATIONS TO DEVELOP ADDITIONAL INFORMATION REGARDING SAME THIS IS MUCH LIKE THE OPERATIONS IN KENTUCKY CONDUCTED BY FEDERAL AUTHORITIES WHICH I READ ABOUT IN THE MORNING NEWSPAPER THAT OPPORTUNITY WILL NOW BE LOST WE REMAIN INTERESTED IN PLEA NEGOTIATIONS I WILL BE IN TOUCH WITH YOU LATER THIS LETTER IS IN RESPONSE TO YOUR LETTER DATED TODAY WHICH YOU FAXED TO MY OFFICE YOU COMMENT THAT THE LETTER YOU RECEIVED YESTERDAY FROM MY OFFICE IS AN ELEVENTH HOUR ATTEMPT TO SET FORTH A PROCEDURE ACCEPTABLE TO YOUR CLIENT YOU COMPLAIN THAT YOU HAVE NOT RECEIVED ANY CONCRETE OFFERS YOU ALSO COMPLAIN THAT BECAUSE IT IS ELEVENTH HOUR IT WILL BE TOO LATE TO GO FORWARD TO PURSUE AN UNDERCOVER OPERATION IN WHICH YOUR CLIENT IS WILLING TO PARTICIPATE YOUR REFERENCES ARE MISPLACED OUR LETTER DATED SEPTEMBER 20 1993 MERELY RECAPITULATED DISCUSSIONS BETWEEN YOU AND THIS OFFICE OVER THE LAST SEVERAL WEEKS YOU HAVE SOUGHT TO DELAY OUR PROCEEDING ON THE ASPECT OF THIS MATTER CURRENTLY SCHEDULED FOR THIS SESSION OF THE GRAND JURY ON EACH OCCASION YOU HAVE REJECTED ANY POSSIBILITY THAT YOUR CLIENT WOULD CONSIDER A FELONY PLEA AND YOU HAVE INSISTED ON EITHER IMMUNITY OR AT MOST A MISDEMEANOR MOREOVER YOU HAVE CLAIMED THAT YOUR CLIENT CAN PROVIDE INFORMATION AND HAVE SET FORTH NAMES ALLEGEDLY INVOLVED HOWEVER ON EACH OCCASION THAT YOU HAVE BEEN REQUESTED TO FURNISH SPECIFICS INCLUDING AGAIN YESTERDAY YOU HAVE DECLINED TO DO SO INSTEAD YOU HAVE RESPONDED WITH ANOTHER GENERAL ASSERTION AND SELFSERVING CONTENTION ABOUT THE LACK OF INTEREST BY THIS OFFICE LET ME AGAIN BE VERY CLEAR THIS OFFICE AND THE DEPARTMENT OF JUSTICE HAS SIC BEEN AND REMAINS INTERESTED AND WILLING TO OBTAIN ANY AND ALL INFORMATION YOUR CLIENT HAS AVAILABLE HOWEVER HE MUST PROVIDE SPECIFICS AND BE WILLING TO FOLLOW THROUGH GENERAL ASSERTIONS THAT HE KNOWS SIGNIFICANT INFORMATION REGARDING IMPORTANT PEOPLE SERVES SIC NO GOAL OTHER THAN HIS UNDERSTANDABLE BUT SELFSERVING DESIRE TO AVOID THE CONSEQUENCES OF HIS OWN SIGNIFICANT CRIMINAL CONDUCT AS AUSA ASSISTANT US ATTORNEY JACKSON ADVISED YOU THE CHARGES PRESENTLY BEING CONSIDERED ARE ONLY ONE FACET OF THIS CASE AND YOUR CLIENT FACES POTENTIAL CRIMINAL EXPOSURE ON A NUMBER OF OTHER ITEMS IT IS AS TO THOSE ITEMS THAT YOUR CLIENT CLAIMS TO HAVE INFORMATION LAST AS TO YOUR CONTENTION THAT OUR INTENTION TO PROCEED WITH INDICTMENT OF YOUR CLIENT COMPROMISES THE POTENTIAL FOR AN UNDERCOVER OPERATION I WAS CONTACTED BY A REPORTER FROM THE NEW YORK TIMES LAST FRIDAY THE REPORTER INDICATED TO ME THAT HE HAD BEEN IN CONTACT WITH YOUR CLIENT AND HAD INTERVIEWED HIM EXTENSIVELY ON THURSDAY REGARDING THIS INFORMATION THE REPORTER ALSO SHOWED ME COPIES OF OUR PAST CORRESPONDENCE WHICH YOU HAD PROVIDED TO HIM I DECLINED TO COMMENT YOUR CLIENT'S EFFORTS TO PUT THIS INFORMATION INTO THE PUBLIC FORUM BELIES ANY SERIOUS WILLINGNESS ON HIS PART TO LEAVE OPEN AN UNDERCOVER TYPE OF OPERATION IN SHORT WE REMAIN WILLING TO HEAR WHAT YOUR CLIENT HAS TO OFFER AT SUCH TIME HE DECIDES THAT HE IS READY WASHINGTON ACTING ASSISTANT ATTORNEY GENERAL JOHN C KEENEY TODAY SAID THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION WILL TAKE CHARGE OF THE GOVERNMENT'S INVESTIGATION INTO MATTERS CONCERNING FORMER JUDGE DAVID HALE AND CAPITAL MANAGEMENT SERVICES INC AND THE NOW DEFUNCT MADISON GUARANTY SAVINGS AND LOAN THE CRIMINAL DIVISION TOOK OVER THE INVESTIGATION AFTER THE US ATTORNEY IN LITTLE ROCK PAULA CASEY INFORMED THE JUSTICE DEPARTMENT LAST WEEK THAT SHE AND HER STAFF HAD RECUSED THEMSELVES BECAUSE OF THEIR FAMILIARITY WITH SOME OF THE PARTIES AND THE NEED TO ENSURE THAT THERE BE NO MISPERCEPTIONS ABOUT THE IMPARTIALITY OF THE INVESTIGATION SECOND IT DOES NOT EVEN PROVIDE A GENERALIZED ALLEGATION REGARDING ANYTHING THAT ANYONE IN MS CASEY'S OFFICE MAY HAVE DONE IN THE GRAND JURY THAT WAS IMPROPER AND THIRD IT SUGGESTS ABSOLUTELY NO PREJUDICE THAT DEFENDANT FITZHUGH MAY HAVE SUFFERED AS A RESULT OF THE PARTICIPATION OF MS CASEY'S OFFICE IN THE GRAND JURY PROCESS IN ORDER TO INVESTIGATE THIS ALLEGATION FULLY IT IS IMPERATIVE THAT THE INDEPENDENT COUNSEL INTERVIEW DEFENDANT HALE OR COMPEL HIS TESTIMONY THIS CANNOT BE DONE UNTIL THE PRESENT CASE HAS BEEN RESOLVED 9403040025 940304 AMOCO WELL IN NORTH SEA FIELD CHICAGO AMOCO CORP SAID A UNIT'S NATURAL GAS WELL IN A NEWLY DISCOVERED NORTH SEA FIELD TESTED AT A DAILY RATE OF 548 MILLION CUBIC FEET OF NATURAL GAS A SPOKESMAN FOR THE OIL COMPANY SAID ITS AMOCO UK EXPLORATION CO'S BELL WELL WAS TESTED AT DEPTHS BETWEEN 9052 FEET AND 9132 FEET AMOCO UK THE OPERATOR OWNS A 3077 INTEREST IN THE WELL AS DOES A UNIT OF BRITISH GAS PLC A UNIT OF AMERADA HESS CORP OWNS A 2308 INTEREST AND ENTERPRISE OIL PLC OWNS THE REMAINING 1538 9403040024 940304 SOLO SERVE'S SALES DECLINE 82 SAN ANTONIO SOLO SERVE CORP SAID SALES IN THE FOURWEEK PERIOD ENDED FEB 26 DECREASED 82 TO 97 MILLION FROM 106 MILLION A YEAR EARLIER THE OFFPRICE RETAILER SAID SALES AT STORES OPEN MORE THAN ONE YEAR DECREASED 16 9403040023 940304 GANTOS FEBRUARY SALES GRAND RAPIDS MICH GANTOS INC A WOMEN'S WEAR RETAILER SAID IT HAD FEBRUARY SALES OF 127 MILLION UNCHANGED FROM THE SAME PERIOD A YEAR AGO THE COMPANY SAID IT ADJUSTED ITS NET SALES FIGURES FOR FEBRUARY LAST YEAR TO EXCLUDE SALES FROM THE 41 STORES THAT IT CLOSED IN THE FOURTH QUARTER GANTOS NOW OPERATES 118 STORES 9403040022 940304 FREEPORTMCMORAN DEBENTURES NEW ORLEANS FREEPORTMCMORAN INC SAID IT WILL BUY ANY OR ALL OF ITS 10 7/8 SENIOR SUBORDINATED DEBENTURES OUTSTANDING DUE MAY 15 2001 IT WILL PAY 1090 PER 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM NOV 15 THROUGH THE DATE OF PURCHASE THE PRINCIPAL AMOUNT OF THE NOTES IS 1251 MILLION THE PURCHASES WILL BE PAID FOR BY CASH RESERVES AND FREEPORTMCMORAN'S BANK CREDIT KIDDER PEABODY & CO IS THE DEALER MANAGER FOR THE OFFER IT EXPIRES MARCH 30 9403040021 940304 SEC WILL CONSIDER PLAN TO IMPROVE MUNI DISCLOSURE BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION SAID IT WILL CONSIDER AN AMBITIOUS PACKAGE WEDNESDAY TO IMPROVE DISCLOSURES TO INVESTORS AND OTHERS IN THE MUNICIPALBOND MARKET THE INITIATIVE WILL INCLUDE AN INTERPRETIVE RELEASE SPELLING OUT THE RESPONSIBILITIES OF MUNI ISSUERS AND OTHERS UNDER THE ANTIFRAUD PROVISIONS OF FEDERAL SECURITIES LAWS MUNIS ARE EXEMPT FROM THE REGISTRATION AND REPORTING REQUIREMENTS OF THOSE LAWS BUT NOT THE ANTIFRAUD PROVISIONS AN INTERPRETIVE RELEASE WOULD PUT BOND ISSUERS ON NOTICE THAT THEY HAVE AFFIRMATIVE DUTIES UNDER THE LAW THE SEC ALSO WILL CONSIDER A PROPOSAL TO BAR DEALERS FROM UNDERWRITING MUNIS UNLESS THE ISSUER OF THE BONDS FORMALLY AGREES TO PROVIDE ANNUAL FINANCIAL INFORMATION AND NOTICES OF MATERIAL EVENTS TO A NATIONALLY RECOGNIZED MUNIINFORMATION REPOSITORY IN ADDITION THE AGENCY WILL CONSIDER A PROPOSAL TO PROHIBIT DEALERS FROM RECOMMENDING A MUNICIPAL BOND TO AN INVESTOR WITHOUT FIRST REVIEWING SUCH INFORMATION THESE LATTER TWO PROPOSALS IN PARTICULAR ARE AIMED AT IMPROVING DISCLOSURE IN THE SECONDARY MUNI MARKET SEPARATELY A REPORT COMMISSIONED BY THE PUBLIC SECURITIES ASSOCIATION SHARPLY DISPUTES THE CONTENTION THAT COMPETITIVE MUNICIPALBOND SALES ARE CHEAPER FOR STATES AND LOCALITIES THAN NEGOTIATED SALES THE REPORT CONDUCTED FOR THE BOND TRADE GROUP BY PROF PAUL LEONARD OF STATE UNIVERSITY OF NEW YORK AT ALBANY REVIEWED ACADEMIC LITERATURE ON MUNI ISSUES AND FOUND NO CONCLUSION ONE WAY OR THE OTHER REGARDING THE RELATIVE ADVANTAGES OF THE TWO METHODS SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT WHO IS TO SPEAK TODAY AT THE PSA'S ANNUAL CONVENTION IN ORLANDO FLA HAS TOUTED COMPETITIVE UNDERWRITINGS AS THE PREFERRED WAY FOR STATES AND LOCALITIES TO SELL THEIR BOND ISSUES 9403040020 940304 WHAT'S NEWS WORLDWIDE THE WHITEWATER AFFAIR BEGAN TO HAVE A WIDER IMPACT ON THE ADMINISTRATION TREASURY SECRETARY BENTSEN REQUESTED AN ETHICS INVESTIGATION INTO THREE MEETINGS BETWEEN TREASURY AND WHITE HOUSE AIDES ON POSSIBLE LAWSUITS RELATED TO A FAILED ARKANSAS THRIFT MEANWHILE SENATE REPUBLICANS VOWED TO BLOCK CONFIRMATION OF THE NOMINEE FOR FDIC CHAIRMAN UNTIL DEMOCRATS AGREE TO HOLD WHITEWATER HEARINGS THE FIRST MAJOR VICTIM OF THE WHITEWATER FALLOUT COULD BE WHITE HOUSE COUNSEL NUSSBAUM BLAMED BY SOME FOR MISHANDLING THE CONTROVERSY THOUGH NUSSBAUM HASN'T BEEN ACCUSED OF ANYTHING ILLEGAL SOME WHITE HOUSE OFFICIALS BELIEVE HIS ACTIONS HAVE LEFT THE IMPRESSION THAT THE ADMINISTRATION IS STONEWALLING ISRAEL FREED MORE PRISONERS AS JEWISH SETTLERS GREW INCREASINGLY DEFIANT THE GOVERNMENT RELEASED 400 PALESTINIANS IN A FURTHER EFFORT TO CURB VIOLENCE OVER THE HEBRON MOSQUE MASSACRE THOUGH 1000 PRISONERS WERE FREED THIS WEEK THERE WAS NO SIGN THAT PALESTINIANS WOULD RESUME PEACE TALKS OR HALT PROTESTS MEANWHILE JEWISH SETTLER LEADERS CALLED ON RADICAL SETTLERS TO RESIST EFFORTS TO DISARM THEM IN JERUSALEM RABIN INVITED THE RIGHTWING TSOMET PARTY TO JOIN HIS COALITION ISRAELI AUTHORITIES ARE CONSIDERING BARRING JEWISH WORSHIPERS FROM JUDAISM'S HOLIEST SITE THE WAILING WALL DURING MUSLIM PRAYERS TODAY AT THE ADJACENT ALAQSA MOSQUE GEPHARDT SIGNALED THAT DEMOCRATS IN CONGRESS WILL SIGNIFICANTLY ALTER THE MECHANICS OF THE CLINTON HEALTH PLAN AND COULD ACCEPT A MORE GRADUAL APPROACH TOWARD ACHIEVING UNIVERSAL COVERAGE THE HOUSE MAJORITY LEADER SAID MODIFICATIONS MUST BE MADE TO MOVE THE LEGISLATION THROUGH COMMITTEES THIS SPRING THE ANC AND ITS RIGHTWING FOES AGREED TO SEEK INTERNATIONAL MEDIATION TO SETTLE THEIR DIFFERENCES IN SOUTH AFRICA RAISING HOPES THAT ALL PARTIES WILL TAKE PART IN APRIL'S ELECTION THE AFRICAN NATIONAL CONGRESS ACCEPTED THE MEDIATION PROPOSAL MADE BY BLACK AND WHITE CONSERVATIVES THE US MILITARY LACKS THE AIRLIFT CAPABILITY TO WAGE ONE LARGESCALE FOREIGN WAR LET ALONE TWO AS CALLED FOR IN THE PRESIDENT'S DEFENSE PLAN THE CHIEF OF THE US CENTRAL COMMAND TOLD A SENATE PANEL TWO SUPREME COURT JUSTICES VOICED DOUBTS OVER THE WISDOM OF MAKING FEDERAL OFFENSES OUT OF MOST CRIMES COMMITTED WITH A GUN WE'RE VERY VERY CONCERNED ABOUT THE POSSIBLE EFFECT OF SOME PROPOSALS KENNEDY SAID AS HE AND SOUTER PRESENTED THE COURT'S BUDGET REQUEST TO A SENATE PANEL MOSCOW LEVELED ANOTHER CHARGE IN ITS SPY SQUABBLE WITH THE WEST SAYING AN AMERICAN DIPLOMAT URGED TWO RUSSIANS TO GET SECRET PLANS FOR A SOPHISTICATED RUSSIAN BATTLE TANK WESTERN ARMS EXPERTS EXPRESSED SURPRISE THAT THE T82 TANK EVEN EXISTS BOSNIAN SERB FORCES HAVE REMOVED OR SURRENDERED NEARLY ALL OF THEIR 600 HEAVY WEAPONS AS ORDERED BY NATO THE COMMANDER OF US FORCES IN EUROPE TOLD A SENATE PANEL IN THE BOSNIAN CAPITAL MEANWHILE A UN OFFICIAL SAID THAT CEASEFIRES GENERALLY WERE HOLDING BUT HE EXPRESSED CONCERN ABOUT INCREASING VIOLATIONS THE HOUSE BUDGET COMMITTEE APPROVED THE OUTLINE OF PRESIDENT CLINTON'S 15 TRILLION FISCAL 1995 BUDGET AND DEFERRED AN INTERNAL DEMOCRATIC DISPUTE OVER DEFENSE SPENDING KEY ARISTIDE SUPPORTERS HAVE JOINED WASHINGTON IN BACKING A PLAN AIMED AT RESOLVING HAITI'S POLITICAL TROUBLES WITHOUT SPECIFICALLY ENSURING THE OUSTED PRESIDENT'S RETURN THE PLAN ALSO WOULD KEEP IN PLACE MUCH OF THE CURRENT MILITARY GOVERNMENT THE US SAID IT WOULD RESUME HIGHLEVEL TALKS WITH NORTH KOREA ON MARCH 21 IN GENEVA THE ANNOUNCEMENT CAME AFTER INTERNATIONAL EXPERTS ARRIVED IN PYONGYANG TO BEGIN INSPECTING SEVEN NUCLEAR SITES CHINA DETAINED A LONGTIME DISSIDENT ZHOU GUOQIANG AND ACCUSED HIM OF PLANNING TO DISRUPT A PARLIAMENTARY MEETING THAT STARTS NEXT WEEK BY DISTRIBUTING TSHIRTS PRINTED WITH PROVOCATIVE SLOGANS THE FAA AGAIN BOOSTED ITS COST ESTIMATE FOR AN OVERHAUL OF THE AGENCY'S AIRTRAFFIC CONTROL SYSTEM OFFICIALS ALSO ARE SUSPENDING FUNDING FOR PART OF THE PROJECT WHICH IS EXPECTED TO BE DELAYED FURTHER 9403040018 940304 ECONOMY BIG THREE LED BY CHRYSLER TO INCREASE PRODUCTION CAPACITY ADD 9500 JOBS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE US AUTO INDUSTRY WHICH ONLY RECENTLY EMERGED FROM A PUNISHING RECESSION IS ADDING MORE THAN A MILLION UNITS OF NORTH AMERICAN CAR AND TRUCK PRODUCTION CAPACITY AND ROUGHLY 9500 NEW JOBS LEADING THE WAY IS CHRYSLER CORP WHICH YESTERDAY ANNOUNCED PLANS TO SHARPLY BEEF UP ITS PREVIOUS PLAN TO EXPAND CAPACITY NOW THE NO 3 US AUTO MAKER PLANS TO SPEND ABOUT 18 BILLION ON ADDITIONAL CAPACITY UP FROM A PREVIOUS 1 BILLION PLAN THE NEW PLAN WOULD GIVE CHRYSLER THE ABILITY TO CRANK OUT AS MANY AS 35 MILLION CARS AND TRUCKS A YEAR AND WOULD ADD SOME 6000 JOBS TO ITS PAYROLLS DETROIT'S BIG THREE ARE RIDING A SURGE IN THE VEHICLE MARKET THAT IS EXPECTED TO EXPAND CAR AND TRUCK SALES BY AT LEAST TWO MILLION UNITS A YEAR BY 1996 OR 1997 FROM LAST YEAR'S 14 MILLION FEBRUARY VEHICLE SALES SOARED 199 FROM A YEAR EARLIER A HUGE MARKET SHIFT TOWARD TRUCKS AND SPORTUTILITY VEHICLES ACCOUNTS FOR MUCH OF THE PLANNED CAPACITY EXPANSION AND PLANS TO BOOST EXPORTS PARTICULARY IN CHRYSLER'S CASE FIGURE PROMINENTLY IN THE EQUATION BUT MANAGING THE EXPANSION POSES ITS OWN PROBLEMS CHRYSLER IS SO SHORT OF CERTAIN FOURCYLINDER ENGINES THAT IT IS WEIGHING WHETHER TO DELAY THE INTRODUCTION OF ITS HIGHLY TOUTED NEW DODGE STRATUS COMPACT UNTIL NEXT YEAR THE CAR CURRENTLY IS SLATED TO GO ON SALE THIS FALL NOW CHRYSLER IS TALKING WITH DEALERS ABOUT LAUNCHING ONLY A LOWVOLUME SISTER MODEL THE CHRYSLER CIRRUS THIS FALL THE CIRRUS WILL BE POWERED BY A MITSUBISHIBUILT V6 SUCH A DELAY WOULD BE LIKELY TO HURT CHRYSLER'S EARNINGS POTENTIAL BUT NOT SIGNIFICANTLY ANALYSTS SAID IN THE EARLY PART OF LAST YEAR WHEN THE ECONOMIC RECOVERY SEEMED UNUSUALLY SLOW THE AUTO INDUSTRY WAS RELUCTANT TO SPEND HEAVILY ON CAPACITY INCREASES BUT SHARP FOURTHQUARTER GROWTH AND ROBUST SALES EARLY THIS YEAR HAVE MADE DETROIT MORE CONFIDENT NOBODY'S TALKING ABOUT A SLOW RECOVERY ANY MORE SAID JOSEPH PHILLIPPI AN ANALYST AT LEHMAN BROS BUT EVEN THOUGH THE INDUSTRY IS HEATING UP IT STILL HAS OVERCAPACITY PROBLEMS PARTICULARLY IN MIDSIZED CAR LINES AND AUTO MAKERS ARE TRYING TO SHIFT THEIR PLANTS AND THEIR PEOPLE OUT OF CAR LINES AND INTO TRUCKS IN ADDING PRODUCTION CAPACITY THE BIG THREE ARE ASSIDUOUSLY AVOIDING ANY TALK OF BUILDING NEW PLANTS INSTEAD THEY ARE FOCUSING ON ADDING THIRD WORK SHIFTS AT CERTAIN FACTORIES AND KEEPING OPEN PLANTS THAT HAD BEEN SLATED TO CLOSE INCLUDING A CHRYSLER PLANT IN ST LOUIS AND A GENERAL MOTORS CORP UNIT IN PONTIAC MICH TODAY FORD MOTOR CO IS EXPECTED TO ANNOUNCE PLANS TO EXPAND CAPACITY AT A PLANT IN DEARBORN MICH THAT MAKES ENGINES AND FUEL TANKS ADDING 100 JOBS IT SAID A NEW PRODUCT WILL BE ADDED TO THE PLANT AND NEW MORE EFFICIENT MACHINERY WILL BE INSTALLED FORD HAD PREVIOUSLY ANNOUNCED PLANS TO BOOST PICKUP TRUCK CAPACITY BY 100000 UNITS EMPLOYING 1400 NEW WORKERS AND THE COMPANY IS RESPONDING TO BOOMING DEMAND BY SLATING HEAVY OVERTIME SCHEDULES AND LOOKING FOR OUTPUTENHANCING EFFICIENCIES ACCORDING TO ROSS ROBERTS THE GENERAL MANAGER OF THE NO 2 AUTO MAKER'S FORD MARKETING DIVISION THE TRUCK BUSINESS IS GROWING SO FAST THAT NONE OF US KNOWS HOW HIGH IT'LL GO HE SAID THERE'S BEEN SUCH A MAJOR SHIFT IN BUYING PATTERNS IN THIS COUNTRY IT'S A PHENOMENON THAT'S NEVER BEEN SURPASSED CHRYSLER SAID YESTERDAY THAT IT WILL ADD A THIRD WORK SHIFT TO BOOST OUTPUT OF GRAND CHEROKEE SPORTUTILITY VEHICLES AT A PLANT IN DETROIT AND WILL ADD PRODUCTION OF ITS NEW DODGE RAM PICKUP IN ST LOUIS THE COMPANY ALSO IS EXPANDING RAM PRODUCTION IN MEXICO WE HAVE TO STRIKE WHEN THE IRON IS HOT SAID ROBERT J EATON CHRYSLER'S CHAIRMAN AND NOWHERE IS THE DEMAND HOTTER THAN IN JEEP AND DODGE RAM PICKUP SALES GM PREVIOUSLY ANNOUNCED THAT IT IS ADDING THIRD SHIFTS IN JANUARY 1995 TO A PONTIAC MICH PLANT THAT BUILDS PICKUPS AND CANCELING PLANS TO CLOSE A PLANT IN PONTIAC THAT BUILDS S10 SPORTUTILITY VEHICLES ALSO THE COMPANY WILL ADD A THIRD SHIFT THIS SPRING TO A FLINT MICH PLANT THAT ASSEMBLES BIG VANS CHRYSLER'S PLANS ARE BY FAR THE MOST AMBITIOUS INVOLVING A 500000UNIT EXPANSION FROM A CURRENT LEVEL THAT CHRYSLER PUTS AT ABOUT THREE MILLION VEHICLES A YEAR THAT TOTAL INCLUDES THE PRODUCTION OF SOME CHRYSLERBADGED PRODUCTS AT MITSUBISHI MOTOR CO'S DIAMONDSTAR PLANT BUT ANALYSTS SAY CHRYSLER'S OWN CURRENT CAPACITY IS ABOUT 26 MILLION VEHICLES A YEAR THE BOTTOM LINE IS THAT THE AUTO MAKER'S WORLDWIDE FACTORY SALES LAST YEAR TOTALED 2475 MILLION VEHICLES AND CHRYSLER EXPECTS THEM TO INCREASE BY NEARLY A MILLION UNITS IN 1996 MOST OF THE INCREASE WILL COME FROM PICKUPS CHRYSLER WILL HAVE THE CAPACITY TO BUILD 130000 DODGE RAMS AT THE ST LOUIS PLANT WHICH HAD BEEN SCHEDULED TO CLOSE NEXT JANUARY IN MEXICO CHRYSLER EXPECTS TO ADD 40000 UNITS OF TRUCK CAPACITY WHEN IT MOVES ASSEMBLY OPERATIONS FROM LAGO ALBERTO NEAR MEXICO CITY TO SALTILLO CHRYSLER IS ALSO ADDING CAPACITY FOR ABOUT 46000 ENGINES TO ITS SALTILLO ENGINE PLANT CHRYSLER SAID THAT WHEN IT INTRODUCES A REDESIGNED DAKOTA PICKUP IN 1996 IT WILL BE ABLE TO BUILD 200000 OF THEM A YEAR UP FROM A PLANNED 185000 THE ADDITION OF THE THIRD SHIFT IN DETROIT WILL INCREASE GRAND CHEROKEE OUTPUT BY 66000 A YEAR AND ADD 800 JOBS THIS YEAR IT ALSO REQUIRES AN INCREASE IN ENGINE PRODUCTION IN KENOSHA WIS AND CHRYSLER SAID IT WILL INCREASE NEON OUTPUT IN BELVIDERE ILL BY 14000 UNITS A YEAR AND BOOST CAPACITY FOR 33LITER MINIVAN ENGINES BY 100000 A YEAR IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CHRYSLER SHARES ROSE 625 CENTS TO 58 FORD FELL 25 CENTS TO 63625 AND GM CLOSED UNCHANGED AT 6050 SEPARATELY CHRYSLER MADE A PREEMPTIVE LEGAL STRIKE AGAINST CIRRUS SYSTEM INC WHICH OWNS THE RIGHTS TO THE CIRRUS NAME FOR AUTOMATED TELLER MACHINES CHRYSLER FILED SUIT IN US DISTRICT COURT IN DETROIT SEEKING A DECLARATORY JUDGMENT GIVING IT THE RIGHT TO THE CIRRUS NAME FOR ITS NEW COMPACT CAR 9403040017 940304 WHO'S NEWS POLYPHASE CORP POLYPHASE CORP DALLAS GEORGE R SCHRADER 63YEAROLD PARTNER OF SCHRADER & CLINE CONSULTING FIRM WAS NAMED TO THE BOARD OF THIS HOLDING COMPANY HE FILLS A VACANCY ON THE FIVEMEMBER BOARD WHICH HAS ONE REMAINING VACANCY 9403040016 940304 POLITICS & POLICY OBEY MAY SUCCEED NATCHER AS HEAD OF HOUSE PANEL WASHINGTON HOUSE APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER TOO WEAK TO COME TO THE FLOOR OF THE HOUSE ENDED HIS RECORD VOTING STREAK AFTER MAKING 18401 CONSECUTIVE ROLL CALLS IN HIS MORE THAN 40 YEARS IN CONGRESS THE 84YEAROLD KENTUCKY DEMOCRAT'S DECLINING HEALTH HAS ALREADY SET OFF A SCRAMBLE TO FIND A NEW CHAIRMAN AND REP DAVID OBEY OF WISCONSIN IS FAVORED TO TAKE OVER THE COMMITTEE WHICH HAS IMMENSE POWER OVER GOVERNMENT SPENDING AND PRESIDENT CLINTON'S INVESTMENT INITIATIVES MR OBEY 55 YEARS OLD WOULD BRING STRONG TIES TO THE LEADERSHIP AND LABOR AND CAN BE EXPECTED TO TRY TO BREAK DOWN SOME OF THE INSULAR CHARACTER OF THE APPROPRIATIONS PANEL AND BRING IT MORE IN LINE WITH THE SENTIMENTS OF THE DEMOCRATIC CAUCUS TO WIN THE WISCONSIN LIBERAL MUST JUMP OVER OLDER MEMBERS INCLUDING HIS CHIEF OPPONENT REP NEAL SMITH OF IOWA BUT HIS CAMPAIGN HAS BENEFITED FROM THE WHOLESALE CHANGES IN THE HOUSE IN RECENT YEARS AND APPETITE FOR A YOUNGER LEADERSHIP 9403040015 940304 WHO'S NEWS CEPHALON INC CEPHALON INC WEST CHESTER PA BRUCE PEACOCK 42 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS BIOTECHNOLOGY COMPANY A NEW POSITION MR PEACOCK FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CENTOCOR INC WAS ALSO ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SIX 9403040014 940304 PHILIPS REPORTS PROFIT OF 2676 MILLION FOR 4TH PERIOD AGAINST YEARAGO LOSS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV SAID IT SWUNG TO A FOURTHQUARTER PROFIT OF 512 MILLION GUILDERS 2676 MILLION OR 157 GUILDERS 82 CENTS A SHARE FROM A YEAREARLIER LOSS OF 1 BILLION GUILDERS OR 324 GUILDERS A SHARE SALES EDGED UP 16 IN THE QUARTER TO 1745 BILLION GUILDERS FROM 1717 BILLION GUILDERS IT WAS THE SECOND CONSECUTIVE PROFITABLE QUARTER FOR PHILIPS AND CONFIRMED MARKET ASSESSMENTS THAT THE DUTCH CONSUMERELECTRONICS GIANT IS AT LAST RECOVERING FROM THREE ROCKY YEARS OF INTERMITTENT LOSSES BUT THE TURNAROUND CAME LARGELY BECAUSE OF A PAINFUL COSTCUTTING PROGRAM CALLED OPERATION CENTURION IN WHICH PHILIPS SHED MOST OF ITS COMPUTER DEFENSE AND PUBLICTELECOMMUNICATIONS DIVISIONS SOLD UNWANTED REAL ESTATE TIGHTENED FINANCIAL CONTROLS SLASHED JOBS AT ITS CORE CONSUMERELECTRONICS BUSINESS AND TRIMMED ITS CORPORATE BUREAUCRACY THE COMPANY ALSO ANNOUNCED THAT ITS FORMER MANAGEMENT BOARD CHAIRMAN WISSE DEKKER HAS DECIDED TO STEP DOWN AS HEAD OF THE BOARD OF SUPERVISORS HE WILL BE SUCEEDED BY FLORIS MALJERS OUTGOING MANAGEMENT BOARD CHAIRMAN AT UNILEVER NV THE ANGLODUTCH CONSUMERPRODUCTS GROUP AND A CURRENT MEMBER OF PHILIPS SUPERVISORY BOARD FOR THE YEAR PHILIPS POSTED A PROFIT OF 197 BILLION GUILDERS REVERSING A LOSS OF 900 MILLION GUILDERS A YEAR EARLIER SALES ROSE 05 TO 5883 BILLION GUILDERS THE COMPANY ALSO DECLARED ITS FIRST ANNUAL DIVIDEND SINCE THE 2 GUILDERS PAID FOR 1989 IT WILL DISTRIBUTE 050 GUILDER A SHARE TO STOCKHOLDERS FOR 1993 PHILIPS SAID ITS 1993 EARNINGS WERE BUOYED BY A NUMBER OF FACTORS THAT INCLUDED A SUBSTANTIAL NARROWING OF THE LOSSES AT THE CONSUMERELECTRONICS DIVISION AS WELL AS A SUBSTANTIAL DROP IN ANNUAL DEBTSERVICE COSTS PHILIPS SAID ITS EARNINGS LAST YEAR TOTALED 615 GUILDERS A SHARE COMPARED WITH THE NET LOSS PER SHARE OF 291 GUILDERS IN 1992 PRETAX FINANCING COSTS PLUNGED TO 104 BILLION GUILDERS LAST YEAR FROM 178 BILLION GUILDERS A YEAR EARLIER THAT DECLINE WAS DUE TO FALLING INTEREST RATES AND BY THE COMPANY'S PAYDOWN AND RESTRUCTURING OF ITS HUGE MOUNTAIN OF DEBT THE LAST TIME PHILIPS POSTED AN ANNUAL PROFIT WAS FOR 1991 THE BIG IMPROVEMENT IN PHILIPS OPERATIONS IN 1993 CAME FROM THE STRUGGLING CONSUMERELECTRONICS DIVISION WHICH TRIMMED ITS ANNUAL PRETAX OPERATING LOSS TO 73 MILLION GUILDERS LAST YEAR FROM THE GAPING 553 MILLION GUILDER DEFICIT IN 1992 SALES WERE RELATIVELY FLAT AT 2134 BILLION GUILDERS IN CONSUMER ELECTRONICS COMPARED WITH THE YEAREARLIER 2159 BILLION GUILDERS BUT THE COMPANY STRESSED THAT THE MODEST LOSS LAST YEAR IN CONSUMER ELECTRONICS REMAINS UNSATISFACTORY DUE TO ONGOING STAGNATION IN MARKETS AND CUTTHROAT COMPETITION FROM LOWCOST PRODUCING COUNTRIES PHILIPS ALSO ANNOUNCED IT IS REORGANIZING THE CONSUMERELECTRONICS LINES IN ORDER TO BE MORE RESPONSIVE TO CHANGES IN THE MARKET AND TO BRING GREATER FOCUS TO USER SATISFACTION AND COST EFFECTIVENESS IT SAID A NEW PRODUCT DIVISION CALLED SOUND AND VISION HAS BEEN FORMED TO HOUSE THE COMPANY'S AUDIOVIDEO PRODUCTS AND SYSTEMS OPERATIONS THE CARSYSTEMS AND BUSINESSELECTRONICS LINES WILL OPERATE AS A SEPARATE BUSINESS PHILIPS LAST YEAR GOT A MAJOR BOOST FROM ITS OTHER CONSUMERPRODUCT LINES ESPECIALLY FROM ITS LONDONBASED POLYGRAM RECORDING AND FILMED ENTERTAINMENT SUBSIDIARY THE UNIT EARLIER THIS WEEK ANNOUNCED THAT 1993 EARNINGS GREW MORE THAN 20 THE CONSUMERPRODUCTS DIVISION WHICH INCLUDES POLYGRAM BOOSTED SALES BY 7 LAST YEAR TO 111 BILLION GUILDERS WITH OPERATING EARNINGS RISING TO 105 BILLION GUILDERS FROM 935 MILLION GUILDERS 9403040013 940304 WHO'S NEWS HJ HEINZ PLANS SHAKEUP AT WEIGHT WATCHERS FOOD CO BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL HJ HEINZ CO MOVING TO REVIVE ITS TROUBLED WEIGHT WATCHERS FOOD CO IS PLANNING A MAJOR SHAKEUP AT THE UNIT NAMING A NEW PRESIDENT AND SLASHING EMPLOYMENT BY AT LEAST 9 BRIAN RUDER THE UNIT'S 39YEAROLD PRESIDENT HAS ACCEPTED A TOP POST WITH INTERNATIONAL DUTIES IN HEINZ'S GROWING BABYFOOD BUSINESS AN OUTSIDER FROM A COMPETING FOOD COMPANY ALREADY HAS BEEN RECRUITED WITH THE TASK OF REGAINING MARKET SHARE LOST TO RIVAL FROZENFOOD BRANDS ACCORDING TO PEOPLE CLOSE TO THE SITUATION HEINZ WHICH IS BASED IN PITTSBURGH AND MR RUDER DECLINED TO COMMENT AN ANNOUNCEMENT IS EXPECTED NEXT WEEK THE MOVES INCLUDE CUTTING MORE THAN 100 JOBS AT WEIGHT WATCHERS FOOD WHICH EMPLOYS ABOUT 1100 IN PENNSYLVANIA OHIO CONNECTICUT AND IDAHO SAID PEOPLE CLOSE TO THE SITUATION WEIGHT WATCHERS FOOD MAKES LOWCALORIE FROZEN ENTREES AND DESSERTS AS WELL AS DRY GOODS AND DAIRY PRODUCTS THIS ISN'T THE FIRST RECENT EXECUTIVE CHANGE AT WEIGHT WATCHERS FOOD JAY J ABRAHAM WHO HAD BEEN VICE PRESIDENT OF MARKETING LEFT SIX MONTHS AGO HEINZ RECRUITED MR RUDER IN 1988 FROM PEPSICO INC WHERE HE WAS A MARKETING DIRECTOR AND IN JUNE 1991 NAMED HIM PRESIDENT OF NEWLY FORMED WEIGHT WATCHERS FOOD SEVERING THE DIETFOOD CATEGORY FROM HEINZ'S OREIDA FROZEN POTATO UNIT MR RUDER WHO HAD WORKED FOR HEINZ BEFORE JOINING PEPSICO WAS HANDPICKED BY DAVID W SCULLEY A SENIOR VICE PRESIDENT MR SCULLEY HAS BEEN CONSIDERED A CANDIDATE TO SUCCEED CHAIRMAN ANTHONY JF O'REILLY WHOSE CONTRACT EXPIRES IN TWO YEARS AND NEEDED TO SHORE UP THE LAGGARD WEIGHT WATCHERS TO STRENGTHEN HIS BID WEIGHT WATCHERS FROZEN FOODS HAD BEEN A MAJOR CONTRIBUTOR TO HEINZ EARNINGS IN THE 1980S LAST YEAR WEIGHT WATCHERS FOOD HAD DOMESTIC SALES OF ABOUT 450 MILLION REPRESENTING ABOUT 10 OF HEINZ'S OVERALL DOMESTIC SALES JOHN M MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES SAID THE BRAND'S PROFITABILITY HAS DECLINED ABOUT 35 MILLION TO 40 MILLION IN THE PAST FEW YEARS AND IS NOW APPROACHING BREAKEVEN LEVELS BRIAN RUDER HAS NOT BEEN ITS SAVIOR MR MCMILLIN SAID I DON'T KNOW HOW MUCH IS HIS FAULT AND HOW MUCH IS THAT THEY'VE GOT A NAME WEIGHT WATCHERS WHICH IS NOT CONTEMPORARY FOR TODAY'S HEALTHORIENTED PERSON WHO'S MORE INTERESTED IN TOTAL FITNESS THAN DIETING MR MCMILLIN ADDED THAT HEINZ'S WEIGHT WATCHERS DIET PROGRAM HAS SEEN ATTENDANCE DROP CUTTING INTO SALES OF WEIGHT WATCHERS FOOD PRODUCTS THE TWO BUSINESSES ARE SEPARATE MR RUDER WASN'T IN CHARGE OF WEIGHT WATCHERS INTERNATIONAL THE WEIGHTLOSS UNIT 9403040012 940304 WHEELING STEEL STRIKE IS ENDED AFTER JUST 2 DAYS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED STEELWORKERS UNION ENDED ITS STRIKE AGAINST WHEELINGPITTSBURGH CORP'S STEEL UNIT JUST TWO DAYS AFTER THE WORK STOPPAGE BEGAN THE TWO SIDES BEGAN INFORMAL TALKS ALMOST IMMEDIATELY AFTER THE USW CALLED 4700 WORKERS OUT ON STRIKE AT SEVERAL PLANTS AT 325 AM EST TUESDAY WITH BOTH SIDES REALIZING THAT A PROLONGED STRIKE WAS A LOSING PROPOSITION THE US STEEL MARKET IS RIDING A STRONG RECOVERY WITH MOST MILLS OPERATING AT OR NEAR CAPACITY AND A LONG STRIKE COULD HAVE COST WHEELINGPITTSBURGH SHIPMENTS AND PROFITS AND POSSIBLY JOBS THE SHORT STRIKE SAVED WHEELINGPITTSBURGH STEEL CORP FROM COMPLETELY SHUTTING DOWN ITS MILLS AND ENABLES A QUICK RESTART ACCORDING TO THE UNION THE TENTATIVE ACCORD INCLUDES A COMPANY AGREEMENT TO BEGIN FUNDING A TRUST FOR RETIRED EMPLOYEES' MEDICAL AND LIFE INSURANCE COVERAGE WORK RULE CHANGES BONUSES TOTALING 2250 A WORKER AND A POSSIBLE 500 BONUS BASED ON THE COMPANY'S 1995 PRETAX INCOME IN ADDITION THE ACCORD INCLUDES A WAGE INCREASE OF 1 AN HOUR THREE ADDITIONAL HOLIDAYS AND PENSION IMPROVEMENTS THE PENSION PLAN WAS A MAJOR OBSTACLE IN EARLIER NEGOTIATIONS THE UNION WANTED MAJOR PENSION CHANGES BUT WHEELINGPITTSBURGH OF WHEELING WVA SAID IT WAS HAMSTRUNG ON THAT MATTER BY AN AGREEMENT WITH THE PENSION BENEFIT GUARANTY CORP THAT AGREEMENT WAS SIGNED WHEN THE COMPANY TERMINATED ITS PENSION FUND WHILE OPERATING UNDER CHAPTER 11 BANKRUPTCY LAW PROTECTION FROM 1985 TO 1991 APPARENTLY THOUGH THE NEW PACT DOESN'T VIOLATE THE AGREEMENT WITH THE PBGC ONE PERSON FAMILIAR WITH THE SITUATION SAID THE CONTRACT IS SIMILAR TO OTHERS SIGNED LAST YEAR WITH MAJOR STEELMAKERS EXCEPT FOR LENGTH THE WHEELINGPITTSBURGH CONTRACT IS FOR 2 1/2 YEARS COMPARED WITH A STANDARD SIX YEARS FOR OTHER STEELMAKERS AND COINCIDES WITH THE 1996 EXPIRATION OF THE COMPANY'S AGREEMENT WITH THE PBGC THE UNION SAID TALKS WILL BEGIN ON RETIREMENT BENEFITS JAN 15 1996 ABOUT NINE MONTHS BEFORE THE CONTRACT EXPIRES ON OCT 1 1996 9403040011 940304 YOUR MONEY MATTERS WEEKEND REPORT FUNDS THAT LOOK DULL CAN BE REAL DAREDEVILS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL IT'S NOT YOUR FATHER'S MUTUAL FUND MUTUAL FUNDS LONG HAVE BEEN SEEN AS A CONSERVATIVE WAY TO TAP INTO THE STOCK MARKET BUT THESE DAYS US STOCK FUNDS ARE ANYTHING BUT DULL PORTFOLIOS OF PREDICTABLE BLUECHIP SHARES IN PURSUIT OF HIGHER RETURNS MANY FUND MANAGERS HAVE BEEN CRANKING UP THE RISK LEVEL BY SHIFTING INTO SMALLER COMPANIES AND FOREIGN MARKETS FUNDS ALSO HAVE BEEN DELVING INTO MORE RICHLY PRICED STOCKS I THINK THERE'S BEEN A GRADUAL EROSION IN THE QUALITY OF MUTUAL FUNDS AND A GRADUAL RISE IN THE RISK LEVEL SAYS RICHARD HOEY MANAGER OF THE 15 BILLION DREYFUS GROWTH & INCOME FUND THERE ARE SEVERAL REASONS HE SAYS RISKIER STOCKS HAVE BEEN OUTPERFORMING LOWRISK STOCKS WE'VE HAD OUTPERFORMANCE BY SMALLCAP RELATIVE TO LARGECAP STOCKS AND LAST YEAR WE HAD OUTPERFORMANCE BY FOREIGN MARKETS RELATIVE TO THE US MARKET YOU'VE GOT THE HIGHEST RETURNS FROM TAKING THE HIGHEST RISK SO FAR THAT AGGRESSIVENESS HAS PAID OFF HANDSOMELY WITH US STOCK FUNDS OUTPACING STANDARD & POOR'S 500STOCK INDEX FOR THE PAST THREE CALENDAR YEARS BUT IF THE STOCK MARKET ENTERS A PROTRACTED DECLINE WHICH SOME ANALYSTS BELIEVE IS HAPPENING RIGHT NOW THEN SOME US FUNDS COULD GET HIT ESPECIALLY HARD THE FUNDS DO HAVE HIGHEROCTANE MATERIAL THAN THE MARKET AS A WHOLE SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THAT EXPLAINS WHY THE FUNDS HAVE DONE SO WELL OVER THE LAST THREE YEARS IF YOU GET A MARKET CRASH WHERE THE SMALLER MORE EXPENSIVE STOCKS FALL THE MOST THE FUNDS WILL UNDERPERFORM THE INDEXES TO GAUGE THE RISK TAKEN BY DIVERSIFIED US STOCK FUNDS MORNINGSTAR LOOKED AT THE 1040 FUNDS CLASSIFIED AS EQUITYINCOME GROWTHANDINCOME GROWTH AGGRESSIVE GROWTH AND SMALLCOMPANY AS OF JAN 31 THESE FUNDS OWNED STOCKS WITH AN AVERAGE STOCKMARKET VALUE OF 52 BILLION WELL BELOW THE 67 BILLION AVERAGE FOR THE STOCKS IN THE VANGUARD INDEX TRUSTTOTAL STOCK MARKET PORTFOLIO THE VANGUARD FUND IS AN INDEX FUND THAT SEEKS TO TRACK THE PERFORMANCE OF THE WILSHIRE 5000STOCK INDEX WHICH INCLUDES ALL US LISTED COMPANIES MOREOVER US STOCK FUNDS WEREN'T JUST CONFINING THEMSELVES TO US STOCKS MORNINGSTAR CALCULATES THAT US STOCK FUNDS HAD AN AVERAGE 55 OF THEIR ASSETS IN FOREIGN STOCKS INCLUDING A 15 STAKE IN EMERGING MARKETS IT'S GETTING WILD DREYFUS'S MR HOEY SAYS I CAN'T TELL YOU HOW MANY CALLS I GET FROM BREATHLESS AMERICAN STOCK SALESMEN ABOUT THE LATEST LATIN AMERICAN ISSUE SOME US STOCK FUNDS ARE MAKING AN ESPECIALLY LARGE BET ON FOREIGN MARKETS STRONG DISCOVERY FUND AN AGGRESSIVE GROWTH FUND CURRENTLY HAS 22 ABROAD INCLUDING 91 IN HONG KONG 42 IN BRAZIL AND 32 IN MEXICO RICHARD STRONG MANAGER OF THE 350 MILLION FUND SAYS SHAREHOLDERS MAY NOT REALIZE THAT US STOCK FUNDS ARE INCREASINGLY LOOKING ABROAD IN THEIR SEARCH FOR BETTER PERFORMANCE THE VOLATILITY WILL EDUCATE THEM MR STRONG SAYS BUT SO TOO WILL THE RETURNS MORNINGSTAR ALSO CALCULATES THAT DIVERSIFIED US FUNDS HAVE BEEN INVESTING IN PRICIER STOCKS MUTUAL FUNDS TYPICALLY OWN STOCKS THAT ARE MARGINALLY MORE EXPENSIVE THAN THE BROAD US MARKET BASED ON SUCH MEASURES AS STOCK PRICES AS A MULTIPLE OF COMPANIES' PERSHARE EARNINGS OVERALL ACCORDING TO MORNINGSTAR'S CALCULATIONS DIVERSIFIED US FUNDS OWN STOCKS THAT ARE TRADING AT 237 TIMES TRAILING 12MONTH EARNINGS COMPARED WITH 228 TIMES EARNINGS FOR THE STOCKS IN VANGUARD'S WILSHIRE 5000 INDEX FUND BUT SOME FUNDS HAVE PARTICULARLY EXPENSIVE TASTES IAI EMERGING GROWTH FUND FOR INSTANCE OWNS STOCKS THAT ARE TRADING AT 458 TIMES EARNINGS IAI EMERGING GROWTH'S STOCKS ARE ALSO TRADING AT 10 TIMES BOOK VALUE ANOTHER WIDELY USED POINT OF REFERENCE THAT IS THE DIFFERENCE BETWEEN A COMPANY'S ASSETS AND ITS LIABILITIES BY CONTRAST THE STOCKS IN THE VANGUARD INDEX FUND TRADE AT 37 TIMES BOOK VALUE IF YOU DON'T WANT TO LOSE PRINCIPAL ON ANY GIVEN DAY YOU SHOULDN'T BE IN THE FUND SAYS THE IAI FUND'S MANAGER RICK LEGGOTT BUT IF YOU WANT TO EARN ABOVEAVERAGE RETURNS OVER LONG PERIODS OF TIME IT'S AN EXCELLENT VEHICLE NOT ALL FUNDS OF COURSE ARE TAKING ON SO MUCH RISK AMONG THE 1040 DIVERSIFIED US STOCK FUNDS THERE ARE 204 THAT OWN STOCKS TRADING AT AN AVERAGE OF LESS THAN 20 TIMES EARNINGS IN ADDITION FUNDS ON AVERAGE HAVE 83 OF THEIR PORTFOLIO IN CASH WHICH SHOULD PROVIDE A CUSHION AGAINST A STOCKMARKET DECLINE THERE'S A DRAMATIC VARIATION IN THE RISK LEVEL AMONG FUNDS SAYS DREYFUS'S MR HOEY THERE ARE SOME FUNDS THAT ARE RUNNING MUCH HIGHER RISK LEVELS THAN THEIR SHAREHOLDERS MAY BE AWARE OF EVEN SOME APPARENTLY CONSERVATIVE FUNDS ARE TAKING A SURPRISING AMOUNT OF RISK CONSIDER FIDELITY BLUE CHIP GROWTH FUND THE FUND'S NAME MAY CONJURE UP IMAGES OF AT&T AND PROCTER & GAMBLE BUT THE FUND'S PORTFOLIO TELLS ANOTHER STORY ACCORDING TO MORNINGSTAR FIDELITY BLUE CHIP GROWTH'S STOCK HOLDINGS HAVE AN AVERAGE MARKET VALUE OF 28 BILLION ROUGHLY HALF THAT OF THE TYPICAL US STOCK FUND ITS HOLDINGS TRADE AT 29 TIMES EARNINGS WELL ABOVE THE MARKET AND 15 OF THE FUND'S ASSETS ARE INVESTED ABROAD JUST BECAUSE A COMPANY DOESN'T ADVERTISE ON TELEVISION DURING THE SUPER BOWL DOESN'T MEAN IT'S NOT A BLUECHIP COMPANY SAYS MICHAEL GORDON MANAGER OF THE 13 BILLION FUND I'M TRYING TO FIND LARGERCAPITALIZATION STOCKS WITH GOOD EARNINGS GROWTH TO ME THAT'S A BLUECHIP COMPANY OPPENHEIMER MAIN STREET INCOME & GROWTH FUND RANKS AS THE FOURTH BESTPERFORMING DIVERSIFIED US STOCK FUND OVER THE PAST THREE CALENDAR YEARS THAT'S A PRETTY NIFTY RESULT FOR A GROWTHANDINCOME FUND WHICH IS HOW THE OPPENHEIMER FUND IS CLASSIFIED BY BOTH MORNINGSTAR AND LIPPER ANALYTICAL SERVICES BUT IT TURNS OUT THAT THE OPPENHEIMER FUND IS REALLY A SMALLCOMPANY STOCK FUND IN DISGUISE ITS HOLDINGS HAVE A TINY AVERAGE MARKET VALUE OF JUST 380 MILLION THE FUND'S 12MONTH YIELD MEANWHILE IS A MODEST 11 BELOW THE 17 AVERAGE FOR ALL GROWTHANDINCOME FUNDS ACCORDING TO LIPPER ANALYTICAL IT'S CERTAINLY NOT YOUR CONVENTIONAL GROWTHANDINCOME FUND CONCEDES JON FOSSEL CHAIRMAN OF OPPENHEIMER MANAGEMENT WHICH MANAGES THE FUND THERE'S NO DOUBT THE FUND'S MANAGER HAS GOT A LOT OF AGGRESSIVE SMALLCAP STOCKS BUT HE'S GOT A LOT OF UTILITIES AND CONVERTIBLES IT'S A SMALLCAPORIENTED GROWTH AND SOMETIMESINCOME FUND BECAUSE RISKY FUNDS HAVE DONE SO WELL DURING THE PAST THREE YEARS VANGUARD GROUP CHAIRMAN JOHN BOGLE SUGGESTS AVOIDING FUNDS THAT RANK AMONG THE TOP PERFORMERS WHOEVER HAS BEEN MOST SPECULATIVE OVER THE PAST COUPLE OF YEARS WILL BE AT THE TOP OF THE LEADER LIST MR BOGLE SAYS I'D AVOID ALL FUNDS CLAIMING TO BE NO 1 I THINK A SENSIBLE FORMULA MIGHT BE TO PUT HALF YOUR MONEY INTO A CONSERVATIVE MIDDLEOFTHEROAD STOCK FUND AND THE OTHER HALF OF YOUR MONEY IN A SHORTTERM BOND FUND HOW DO YOU FIND A CONSERVATIVE STOCK FUND MORNINGSTAR'S MR REKENTHALER SUGGESTS LOOKING AT A FUND'S PORTFOLIO TO MAKE SURE THE FUND IS DIVERSIFIED ACROSS A VARIETY OF INDUSTRIES AND THAT ITS PORTFOLIO INCLUDES SOME WELLKNOWN COMPANIES YIELD IS A PRETTY GOOD SIGN HE ADDS IF YOU'VE GOT A YIELD OVER 3 YOU'VE EITHER GOT CONSERVATIVE STOCKS IN THE FUND OR YOU'VE GOT A LOT OF CASH AND BONDS EITHER WAY YOU'LL HAVE SOME DOWNMARKET PROTECTION AMONG CONSERVATIVE STOCK FUNDS MR REKENTHALER FAVORS SUCH NOLOAD FUNDS AS T ROWE PRICE EQUITYINCOME FUND USAA MUTUAL INCOME STOCK FUND AND VANGUARD EQUITYINCOME FUND 9403040010 940304 PROFFITT'S TO ACQUIRE RETAILER MCRAE'S FOR 228 MILLION ALCOA TENN PROFFITT'S INC AGREED TO ACQUIRE MCRAE'S INC A RETAILER ABOUT TWICE ITS SIZE FOR 228 MILLION AND THE ASSUMPTION OF ABOUT 109 MILLION IN LONGTERM DEBT AND OTHER FINANCING PROFFITT'S WHICH OPERATES 25 SPECIALTY DEPARTMENT STORES IN THE SOUTHEAST SAID IT WILL BUY THE COMMON STOCK OF PRIVATELY HELD MCRAE'S FROM 72 SHAREHOLDERS FOR 210 MILLION PROFFITT'S WILL ALSO PURCHASE FOUR REGIONAL MALL STORES OWNED BY MCRAE FAMILY PARTNERSHIPS FOR 18 MILLION MOST ANALYSTS PRAISED THE AGREEMENT NOTING THAT THE TWO COMPANIES COMPLEMENT EACH OTHER GEOGRAPHICALLY AND ARE TARGETED AT SIMILAR MARKETS MCRAE'S BASED IN JACKSON MISS OPERATES 28 SPECIALTY DEPARTMENT STORES IN MISSISSIPPI ALABAMA LOUISIANA AND FLORIDA IN THE YEAR ENDED JAN 29 THE COMPANY HAD EARNINGS OF 196 MILLION ON SALES OF 4188 MILLION FOR ITS FOURTH QUARTER ENDED JAN 29 PROFFITT'S REPORTED NET INCOME OF 800000 OR EIGHT CENTS A SHARE COMPARED WITH 34 MILLION OR 55 CENTS A SHARE A YEAR EARLIER THE LATEST PROFIT FIGURE IS ADJUSTED FOR A CHANGE IN INVENTORY ACCOUNTING IN ANTICIPATION OF THE MERGER WITH MCRAE'S SALES ROSE 54 TO 781 MILLION FROM 504 MILLION R BRAD MARTIN CHAIRMAN AND CHIEF EXECUTIVE OF PROFFITT'S WILL RETAIN THOSE POSITIONS AFTER THE ACQUISITION RICHARD D MCRAE JR PRESIDENT AND CHIEF EXECUTIVE OF MCRAE'S WILL BECOME WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF PROFFITT'S AND JOIN ITS BOARD ADDITIONALLY RICHARD MCRAE CHAIRMAN OF MCRAE'S WILL JOIN THE PROFFITT'S BOARD THE ACQUISITION IS EXPECTED TO BE COMPLETED IN APRIL 9403040009 940304 NEW YORK MULLS DUMPING TRASH OUTSIDE STATE CITY CONTRACT COULD SPAN TWO DECADES AND INJECT 1 BILLION INTO MARKET BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITY IN A MOVE THAT COULD HELP BOOST THE SAGGING FORTUNES OF THE EAST COAST TRASH INDUSTRY SAID IT IS CONSIDERING SHIPPING AS MUCH AS 5000 TONS OF TRASH DAILY OUT OF STATE BEGINNING IN 1997 THE 20YEAR DISPOSAL CONTRACT FOR WHICH THE CITY SAID IT WOULD SEEK PROPOSALS COULD BE VALUED AT MORE THAN 1 BILLION LARGESCALE EXPORT OF RESIDENTIAL WASTE FROM NEW YORK COULD HELP MAYOR RUDOLPH W GIULIANI POLITICALLY IT ALSO COULD HELP REDUCE THE GLUT OF DISPOSAL CAPACITY THAT STRETCHES FROM NEW HAMSPHIRE TO VIRGINIA WHICH IS A FINANCIAL STRAIN ON SOME MUNICIPALITIES AND TRASHHANDLING COMPANIES LIKELY BIDDERS FOR THE NEW YORK TRASH WORK INCLUDE WMX TECHNOLGIES INC AND BROWNINGFERRIS INDUSTRIES INC SMALLER REGIONAL TRASH CONCERNS AND PERHAPS BERGEN COUNTY NJ WHICH OWNS A LARGE AND LITTLEUSED TRASHTRANSFER STATION MINUTES FROM DOWNTOWN MANHATTAN OVERBUILDING OF DUMPS AND INCINERATORS IN THE REGION HAS LED TO FIERCE PRICE CUTTING AS COMPANIES AND COMMUNITIES COMPETE FOR TRASH VOLUMES THAT ARE LOWER THAN EXPECTED BECAUSE OF RECYCLING AND THE RECENT RECESSION DESPITE THAT GLUT NEW YORK IS ONE OF THE FEW CITIES IN THE COUNTRY THAT HAS A SHORTAGE OF DISPOSAL CAPACITY WITHIN ITS BORDERS AND HASN'T FOUND A HOME ELSEWHERE FOR ITS TRASH A SPOKESWOMAN FOR THE CITY'S SANITATION DEPARTMENT SAID A REQUEST FOR PROPOSALS WOULD BE ISSUED NEXT MONTH COVERING OUTOFAREA DISPOSAL OF 3000 TO 5000 TONS A DAY OF RESIDENTIAL TRASH FOR 20 YEARS THE CITY GENERATES ABOUT 13000 TONS A DAY OF RESIDENTIAL TRASH AND SENDS NEARLY ALL OF IT BY BARGE TO THE FRESH KILLS LANDFILL ON STATEN ISLAND LOCAL POLITICS PUSHES THE TRASH OUT HOWEVER STATEN ISLANDERS HAVEN'T BEEN HAPPY ABOUT BEING HOST TO ALL THAT TRASH AND THE BIG DUMP HAS HELPED FUEL A MOVEMENT TO SECEDE FROM THE CITY WHAT'S MORE VOTERS ON STATEN ISLAND FAVORED MR GIULIANI IN HIS NARROW VICTORY IN THE RECENT MAYORAL ELECTION ANOTHER POLITICAL CONSIDERATION SOME RESIDENTS AROUND A PROPOSED 3000 TONADAY BROOKLYN NAVY YARD TRASH INCINERATOR ARE STRONGLY OPPOSED TO THAT PROJECT THAT AREA TOO VOTED FOR MR GIULIANI LOGISTICS ARE AT WORK TOO A WATERFRONT TRANSFER STATION IN THE BRONX WHICH SENDS 1700 TONS A DAY TO FRESH KILLS COULD NEED TO BE CLOSED SOON FOR RENOVATION AND AS THE DUMP GROWS TALLER IT MUST BE SLOPED LIKE A MOUNTAIN WHICH MAKES ACCOMMODATING THE FULL 13000 TONS DAILY INCREASINGLY DIFFICULT SANITATION COMMISSIONER EMILY LLOYD WOULDN'T ELABORATE ON THE ANNOUNCEMENT THAT HER DEPARTMENT WOULD SEEK PROPOSALS FOR TRASH EXPORT THOUGH DISPOSAL PRICES IN THE EAST ARE RELATIVELY CHEAP BERGEN COUNTY RECENTLY GOT A 32 PRICE CUT TO 4275 A TON TO SEND ITS TRASH TO A VIRGINIA DUMP EXPORT STILL WOULD BE HARD ON NEW YORK BECAUSE IT DUMPS FOR NEXT TO NOTHING AT FRESH KILLS AT 40 A TON 5000 TONS SIX DAYS A WEEK WOULD COST 624 MILLION WASTE COMPANIES HAVEN'T USUALLY COMMITTED TO 20YEAR CONTRACTS BUT THE DISPOSAL GLUT AND TOUGH COMPETITION HAVE CHANGED THAT WE'RE ABLE TO DO 20 YEARS SAID PHILIP ANGELL A BROWNINGFERRIS OFFICIAL WHO SAID HIS COMPANY WILL ABSOLUTELY COMPETE FOR THOSE VOLUMES BROWNINGFERRIS BASED IN HOUSTON HAS DUMP SPACE AVAILABLE NEAR PHILADELPHIA PITTSBURGH IN OHIO AND AT INCINERATORS IN THE EAST ALSO WMX TECHNOLOGIES BASED IN OAK BROOK ILL ALSO HAS CAPACITY AT TWO BIG DUMPS NEAR PHILADELPHIA AND AT EAST COAST INCINERATORS OFFICIALS THERE SAID THE COMPANY IS INTERESTED IN THE NEW YORK VOLUME BUT WOULDN'T ELABORATE 9403040007 940304 HEILIGMEYERS SAYS EARNINGS ON TRACK IN FISCAL 4TH QUARTER RICHMOND VA HEILIGMEYERS CO EXPECTS EARNINGS GROWTH FOR ITS FISCAL FOURTH QUARTER AND YEAR TO BE ON TRACK WITH THE STRONG 43 INCREASE OF THE FIRST NINE MONTHS TROY A PEERY JR PRESIDENT SAID IN AN INTERVIEW MR PEERY WHO IS ALSO CHIEF OPERATING OFFICER OF THE SPECIALTY FURNITURE RETAILER SAID ANALYSTS ARE ESTIMATING PERSHARE EARNINGS OF 105 TO 110 OR 512 MILLION TO 537 MILLION FOR THE FISCAL YEAR ENDED FEB 28 WE'RE GOING TO BE IN THAT RANGE OR AT THE UPPER END OF IT IS MY GUESS MR PEERY SAID HE SAID SALES ALSO WILL BE UP FOR THE QUARTER AND THE YEAR BUT NOT AS MUCH AS PROFIT IN THE PREVIOUS FULL YEAR HEILIGMEYERS HAD NET INCOME OF 83 CENTS A SHARE OR 38 MILLION RESTATED FOR A 3FOR2 STOCK SPLIT LAST JUNE REVENUE FOR THE PREVIOUS YEAR TOTALED 6575 MILLION ANALYSTS ARE LOOKING FOR FOURTHQUARTER PERSHARE EARNINGS OF 25 CENTS TO 27 CENTS OR A TOTAL OF ABOUT 126 MILLION TO 136 MILLION MR PEERY SAYS HE IS COMFORTABLE WITH THOSE ESTIMATES IN THE YEAREARLIER QUARTER HEILIGMEYERS HAD RESTATED NET INCOME OF 21 CENTS A SHARE OR 96 MILLION ON SALES OF 1824 MILLION HEILIGMEYERS WILL REPORT EARNINGS MARCH 23 SALES HAVE BEEN RUNNING AT A BRISK PACE FOR THE MONTH OF FEBRUARY SALES ROSE 41 TO 665 MILLION FROM 473 MILLION IN FEBRUARY 1993 SAMESTORE SALES WERE UP 125 FOR THE 12 MONTHS SALES ROSE 32 TO 7233 MILLION COMPARED WITH 5497 MILLION A YEAR EARLIER SAMESTORE SALES WERE UP 121 HEILIGMEYERS OPERATES 570 STORES IN 22 STATES PRIMARILY IN THE SOUTHEAST MIDWEST AND WEST MR PEERY BELIEVES THERE IS ROOM FOR EXPANSION AND IS PLANNING TO OPEN 60 STORES IN THE CURRENT FISCAL YEAR 9403040006 940304 KOREA TELECOM GETS NO SATISFACTORY BIDS FOR 21 STAKE IN UNIT SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S STATEOWNED KOREA TELECOM SAID THURSDAY ITS THIRD BID TO SELL A 21 STAKE IN THE NATION'S MOBILEPHONE MONOPOLY KOREA MOBILE TELECOMMUNICATIONS CORP DREW NO SATISFACTORY BUYERS IN RECENT AUCTIONS ACCORDING TO COMPANY OFFICIALS THREE INDIVIDUALS TOOK PART IN THE BIDDINGS HELD FEB 28 AND MARCH 2 BUT FAILED TO PUT FORWARD THE MINIMUM PRICE OF 330000 WON 408 A SHARE SET BY THE COMPANY THE THREE APPLICANTS OFFERED TO BUY SHARES OF THE CELLULAR PHONE MONOPOLY AT 105000 WON A SHARE FOR A COMBINED ORDER OF 690 SHARES COMPANY OFFICIALS SAID THE 21 STAKE OF KOREA MOBILE TELECOM REPRESENTS ABOUT 12 MILLION SHARES IN EARLY JANUARY THE SOUTH KOREAN GOVERNMENT SAID IT WOULD SELL 44 OF THE EQUITY IN THE MOBILEPHONE MONOPOLY AS PART OF EFFORTS TO SLIM THE NATION'S BULKY STATERUN CORPORATIONS SUNKYONG GROUP IN A LATEJANUARY AUCTION BOUGHT A CONTROLLING STAKE IN THE COMPANY BY PURCHASING 23 OF ITS EQUITY OR ABOUT 13 MILLION SHARES THROUGH THE GROUP'S THREE AFFILIATES IN THE SECOND BIDDING IN FEBRUARY 2380 SHARES WERE SOLD TO 10 PEOPLE ACCORDING TO COMPANY OFFICIALS KOREA MOBILE TELECOM MAY OFFER THE REMAINING SHARES AT PRICES LOWER THAN RECENT VALUE AFTER CONSULTATIONS WITH THE GOVERNMENT THE SOUTH KOREAN GOVERNMENT RESTRICTED THE PURCHASE OF THE SHARES BARRING PARTICIPATION OF INSTITUTIONAL INVESTORS IN AUCTIONS AND FORCING A MANDATORY SHAREHOLDING PERIOD OF ONE YEAR CURRENTLY KOREA MOBILE TELECOM IS THE ONLY CONCERN THAT INSTALLS AND OPERATES CELLULAR PHONES IN SOUTH KOREA WHERE DEMAND FOR MOBILE PHONES IS EXPECTED TO EXPLODE IN A FEW YEARS 9403040005 940304 SWISS MOVEMENT CAN WRISTWATCH WHIZ SWITCH SWATCH CACHET TO AN AUTOMOBILE NICOLAS HAYEK AND MERCEDES WILL TRY IT BUT NEW CAR IS HITTING CROWDED ROAD A HALFELECTRIC TWOSEATER BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL BIEL SWITZERLAND NICOLAS HAYEK SITS IN HIS OFFICE ON THE EDGE OF THIS MOUNTAIN TOWN RECOUNTING RECENT VISITS BY TOP AUTOINDUSTRY EXECUTIVES I'M NOT SAYING THEY WERE ON THEIR KNEES PLEADING PLEASE HAYEK TAKE US' HE SAYS WAVING A HALFSMOKED CIGAR BUT THEY CAME A FEW DAYS AFTER DAIMLERBENZ AG'S MERCEDESBENZ UNIT AGREED TO MANUFACTURE HIS VISION THE SWATCHMOBILE FIRST CAR EVER NAMED AFTER A WRISTWATCH MR HAYEK WANTS IT KNOWN HE HAD OTHER LOOKERS JOHN SMITH PRESIDENT OF GENERAL MOTORS CORP HAD LUNCH HERE LATE LAST YEAR AND IN A LETTER THAT MR HAYEK PROUDLY PRODUCES THE CHIEF EXECUTIVE OF ANOTHER US AUTO MAKER INVITED HIM TO DETROIT TO DISCUSS THE SWATCHMOBILE PROVOCATIVELY MR HAYEK SAYS HE MIGHT WELCOME THE INCLUSION OF A THIRD PREFERABLY AMERICAN PARTNER IN THE AUTO VENTURE ALTHOUGH HE CONCEDES THAT MERCEDES PROBABLY WOULDN'T AGREE SO WHY ALL THE HIGHPOWERED CURIOSITY IF MR HAYEK'S TRACK RECORD IS ANY GUIDE IT IS JUST POSSIBLE THAT THE VENTURE COULD ROLL OUT AN AUTOMOBILE SO IRRESISTIBLE ITS FACTORIES COULDN'T MEET DEMAND OWNERS WOULD BE JOINING CLUBS EXPRESSLY TO TALK ABOUT THE CAR AND COLLECTORS WOULD BE STOWING IT CONFIDENT OF RAPID APPRECIATION ALL OF THAT HAS HAPPENED OF COURSE WITH MR HAYEK'S ONE OTHER PRODUCT THE SWATCH THE COLORFUL TIMEPIECE WITH THE PLASTIC BAND AND LOW PRICE AVERAGE 40 HAS HAD SALES OF MORE THAN 100 MILLION UNITS SINCE ITS 1983 DEBUT HAS BECOME A COLLECTOR'S ITEM AND HAS ATTRACTED NUMEROUS SWATCH FANATICS MANY OF WHOM OWN DOZENS SO FAR THERE ISN'T EVEN ONE SWATCHMOBILE ONLY TODAY ARE MERCEDES OFFICIALS AND MR HAYEK UNVEILING A PROTOTYPE AT THE MERCEDESBENZ MUSEUM IN STUTTGART GERMANY AND THEY ARE SHOWING ONLY ITS DESIGN A TWOSEATER THAT IS EXPECTED TO COME IN SNAPPY COLORS NOT UNTIL THE OLYMPICS IN ATLANTA IN 1996 DOES MR HAYEK EXPECT TO HAVE A CAR THAT OBSERVERS COULD TEST DRIVE AND EVEN THEN IT WOULDN'T HIT THE MARKET FOR MONTHS BUT DON'T EXPECT MR HAYEK A SELFDESCRIBED 65YEAROLD CHILD TO STICK WITH THE HERE AND NOW A CHIEF EXECUTIVE HAS TO BELIEVE IN SANTA CLAUS HE SAYS YES VIRGINIA THE WILLINGNESS OF MANY INTERNATIONAL AUTO EXECUTIVES TO SHARE OR AT LEAST CONSIDER SHARING MR HAYEK'S BELIEF HAS A LOT TO DO WITH SWATCH EVERY MAKER OF CONSUMER PRODUCTS DREAMS OF A GIZMO THAT DRIVES PEOPLE WILD AND IN RECENT YEARS THERE HAVE BEEN FEW BETTER EXAMPLES OF THAT THAN SWATCH BUT INTEREST IN THE SWATCHMOBILE ALSO HAS A LOT TO DO WITH THE CELEBRITY OF MR HAYEK KNOWN AS THE SAVIOR OF SWITZERLAND'S LEGENDARY WATCH INDUSTRY HE IS SO VISIBLE HERE AND THROUGHOUT EUROPE THAT HE RECENTLY INSTRUCTED HIS STAFF TO STOP CLIPPING EVERY ARTICLE WRITTEN ABOUT HIM THERE WERE TOO MANY HE SAYS AND HEREIN LIES WHAT OBSERVERS CALL THE BIGGEST QUESTION ABOUT THE SWATCHMOBILE ARE ITS SUPPORTERS INTOXICATED BY MR HAYEK'S EXTRAORDINARY GIFT FOR PROMOTION HE IS SOMETIMES GIVEN TO OVEROPTIMISM WARNS STAN ZUIN AN ANALYST HERE WITH DARIER HENTSCH & CIE INDEED NOT A FEW PROFESS TO SEE SOME EXAGGERATION IN THE MOST COMPELLING CHAPTER OF THE HAYEK STORY HIS ROLE IN THE SUCCESS OF SWATCH AND THEREFORE IN THE REVIVAL OF THE SWISS WATCH INDUSTRY IN THE EARLY 1980S SWITZERLAND'S TWO LARGEST WATCH COMPANIES WERE POSTING HEAVY LOSSES BECAUSE JAPANESE FIRMS USING QUARTZ TECHNOLOGY DEVELOPED AND ABANDONED BY THE SWISS HAD REVOLUTIONIZED THE MARKET WITH INEXPENSIVE AUTOMATIC WATCHES EVEN WELLHEELED CONSUMERS WERE BUYING SEIKOS INSTEAD OF LUXURY SWISS WINDUPS SUCH AS BLANCPAINS OR OMEGAS SEEKING HELP CREDITORS OF THE COMPANIES CALLED ON MR HAYEK SINCE FOUNDING A CONSULTING FIRM IN ZURICH IN 1953 HE HAD BECOME KNOWN FOR ATTACKING WASTE AND MISMANAGEMENT IN THE SWISS NATIONAL RAILROADS THE SWISS ARMY THE STATE RADIO AND TELEVISION NETWORKS AND MORE A SHORT OVERWEIGHT NATIVE OF BEIRUT LEBANON HE HAS OFTEN MOCKED HIS OWN APPEARANCE WHILE BOASTING OF HIS BRILLIANCE HIS STYLE STANDS OUT AMONG A PEOPLE HE CALLS VERY STIFF TO CENTRALIZE MANAGEMENT AND SAVE COSTS HE ORDERED A MERGER OF THE TWO WATCH COMPANIES THEN LED A CONSORTIUM OF INVESTORS WHO BOUGHT A 51 STAKE IN THE NEW CONCERN FOR 151 MILLION SWISS FRANCS ABOUT 100 MILLION AT THE TIME TODAY FLUSH WITH PROFITS THE COMPANY CALLED SWISS CORP FOR MICROELECTRONICS AND WATCHMAKING INDUSTRIES OR SMH HAS A MARKET VALUE OF ABOUT EIGHT BILLION SWISS FRANCS 4 BILLION THE SWISS WATCHMAKING INDUSTRY WHOSE SHARE OF THE WORLD MARKET HAD DROPPED TO LESS THAN 15 IN 1983 FROM OVER 40 IN THE MID1970S HAS SINCE RISEN TO MORE THAN 50 LARGELY ON THE STRENGTH OF THE SWATCH MR HAYEK CONCEDES THAT THE TURNAROUND IS MAINLY ATTRIBUTABLE TO A WATCH THAT COMPANY TECHNICIANS DEVELOPED BEFORE HIS ARRIVAL IN A SEARCH FOR THINNESS AND LIGHTNESS THEY REDUCED BY HALF THE NUMBER OF PARTS AND BUILT THEM INTO A PLASTIC CASING EVEN DEVISING A WAY TO BUILD THE WATCH ON AN ASSEMBLY LINE BUT ACCORDING TO MR HAYEK THE EXERCISE WAS PURELY ACADEMIC BECAUSE COMPANY OFFICIALS BELIEVED A LOWPRICED WATCH WOULD DAMAGE THE REPUTATION OF SWISS WATCHMAKING HE SAYS THEY INTENDED TO SELL THE CONCEPT TO ANOTHER MAKER UNTIL HE INTERVENED INSISTING THAT THE COMPANY CATER TO THE LOWEND MARKET AS WELL IF SOMEONE BUYS A WATCH FROM YOU WHEN HE'S 16 AND IT WORKS WELL HE'S GOING TO BUY ONE OF YOUR BETTER WATCHES WHEN HE'S OLDER MR HAYEK SAYS BUT ERNST THOMKE AN ENGINEER AND FORMER COMPANY EXECUTIVE WHO HELPED CREATE THE WATCH SAYS THE ASSEMBLY DISTRIBUTION AND MARKETING OF SWATCH AS WELL AS ITS NAME A SHORTENING OF SWISS WATCH WERE IN PLACE WHEN MR HAYEK ARRIVED HE HAD THE SENSE TO SEE ITS POTENTIAL AND HE GOT BEHIND IT SAYS MR THOMKE BUT THE INITIAL SUCCESS OF SWATCH HAD NOTHING TO DO WITH HIM WHATEVER THE CASE WITH ITS ZIPPY COLORS STRENGTH AND AFFORDABLE PRICE THE SWATCH BECAME A FASHION ITEM AND THE FACE IN FRONT OF ITS CULT FOLLOWING WAS MR HAYEK'S HE PUBLICLY SMASHED THE WATCH AGAINST WALLS AND DUNKED IT IN AQUARIUMS TO SHOW ITS DURABILITY AFTER THE STOCKMARKET CRASH IN 1987 HE PUBLISHED ADVERTISEMENTS INVITING DOWNANDOUT INVESTORS TO TRADE THEIR ROLEXES FOR SWATCHES IN THE STYLE OF SWATCH FANS HE BEGAN WEARING MULTIPLE WATCHES ON HIS WRISTS ARTICLE AFTER ARTICLE HIS CLIPPING DEPARTMENT HAD COLLECTED 15000 BY 1987 REFERRED TO HIM AS THE DEVELOPER OF THE SWATCH BY LAST YEAR SMH'S EARNINGS HAD RISEN TO THE EQUIVALENT OF ABOUT 307 MILLION ON SALES OF 199 BILLION IN 1983 THE COMPANY HAD REPORTED A LOSS OF 83 MILLION ON SALES OF 699 MILLION AS PROFITS ROSE SO DID MR HAYEK'S REPUTATION AS A MIRACLE WORKER HE DID LITTLE TO DISCOURAGE THE IMPRESSION OF SMH AS A ONEMAN SHOW THE 1992 ANNUAL REPORT FOR INSTANCE FEATURES SIX PHOTOGRAPHS OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND HIS LETTER TO SHAREHOLDERS BEGINS NOT WITH ANY TALK OF PROFITS BUT WITH THE ANNOUNCEMENT THAT HE WAS NOMINATED AS MAN OF THE YEAR 1991 HERE IN REMOTE BIEL THIS CLAIMING ALL THE CREDIT IS BULL AND IT'S WHY I LEFT A COUPLE OF YEARS AGO SAYS MR THOMKE THE ENGINEER STILL NO ONE DISPUTES THAT MR HAYEK DESERVES SOLE CREDIT FOR THE SWATCHMOBILE CONCEPT CALLING CARS AN ITEM LIKE WATCHES TO WHICH CONSUMERS BECOME EMOTIONALLY ATTACHED HE SAYS HE IS A GENIUS AT EXPLOITING THAT VULNERABILITY MR HAYEK SAYS THE SWATCHMOBILE WILL COMBINE THE THREE MOST IMPORTANT FEATURES OF THE WATCH AFFORDABILITY DURABILITY AND STYLISHNESS THE CAR WILL COST WELL UNDER 10000 HE SAYS AND BE LESS THAN 10 FEET LONG IT WILL HOLD TWO PEOPLE AND A CASE OF BEER OR MINERAL WATER SAYS MR HAYEK AND IN ADDITION TO PERFORMING WELL HE CLAIMS THE SWATCHMOBILE WILL ADDRESS THE BIGGEST FEAR ABOUT A SMALL CAR ACCIDENTS THIS CAR WILL HAVE THE CRASH SECURITY OF A MERCEDES HE SAYS AT THE MOMENT THOUGH THE COMPANY'S LATEST PROTOTYPE LOOKS AS IF IT ALREADY HAS BEEN IN A COLLISION TAKEN APART AND PUT BACK TOGETHER NUMEROUS TIMES THE CAR SITS MISSHAPENLY IN THE GARAGE OF AN UNMARKED BUILDING NEAR HERE TAKING A VISITOR DOWN TO THE GARAGE FOR A DEMONSTRATION DANIEL RYHINER AN ENGINEER CLIMBS IN AND STARES AT THE DASHBOARD AFTER CONSULTING WITH A NEARBY MECHANIC ABOUT THE MEANING OF A PARTICULAR RED LIGHT HE PUNCHES THE GAS PEDAL AND THE CAR MOVES FORWARD WITH THE SILENCE OF A BULB LIGHTING UP IT'S ELECTRIC MR RYHINER EXPLAINS WITH A GRIN OUT ON THE STREET THOUGH THE ELECTRICAL SYSTEM WORKS UP TO A SCREAM AS THE CAR ACCELERATES WE'RE WORKING ON THE NOISE MR RYHINER SAYS AS HE SWITCHES ON THE CAR'S GASOLINEPOWERED ENGINE MR HAYEK PREDICTS THAT THE JOINT VENTURE EVENTUALLY WILL SELL 500000 CARS ANNUALLY IN THE US AND A MILLION A YEAR WORLDWIDE NOT EVERYONE IS SO OPTIMISTIC MR HAYEK ONCE TRIED SELLING CLOTHES BAGS AND OTHER ITEMS BEARING THE SWATCH NAME ONLY TO DROP THE PROJECT FOR LACK OF SALES AND SALES OF SWATCH TELEPHONES PAGERS AND SUNGLASSES OFTEN HAVEN'T MET EXPECTATIONS HE HASN'T ENJOYED THE SAME SUCCESS WITH HIS NONWATCH SWATCH PRODUCTS SAYS MARTIN NEWSON WHO FOLLOWS THE COMPANY FROM LONDON FOR GOLDMAN SACHS & CO MOREOVER THERE IS THE QUESTION OF WHETHER A MARRIAGE WITH MERCEDES CAN WORK A PARTNERSHIP WITH VOLKSWAGEN AG FELL APART EARLY LAST YEAR AND THOUGH MR HAYEK CLAIMS HE MADE THAT CALL BECAUSE OF A DISAGREEMENT OVER CONCEPT VOLKSWAGEN OFFICIALS SAY THEY DETERMINED THE PROJECT WOULDN'T TURN A SUFFICIENT PROFIT WHILE THERE IS A RISK THAT THE FREEWHEELING MR HAYEK MIGHT CLASH WITH THE FORMAL STYLE OF DAIMLERBENZ OFFICIALS MR HAYEK CONCEDES THAT HE NEEDS THE PARTNERSHIP FOR THE MERCEDES DISTRIBUTION SYSTEM IF NOT ITS MANUFACTURING FACILITIES I COULDN'T SELL EVEN A SMALL CAR OUT OF A JEWELRY STORE HE SAYS ALREADY MICHAEL HESELTINE PRESIDENT OF BRITAIN'S BOARD OF TRADE HAS ASKED MR HAYEK TO CONSIDER BRITAIN AS A PRODUCTION BASE FOR THE SWATCHMOBILE THE FINANCIAL TERMS OF THE JOINT VENTURE AREN'T KNOWN BUT ANALYSTS SAY IT IS A TRIBUTE TO THE POWER OF THE SWATCH BRAND THAT MERCEDES OFFICIALS HAVE AGREED TO THE PARTNERSHIP THESE ANALYSTS SAY THE ARRANGEMENT OFFERS MERCEDES THE BEST OF BOTH WORLDS A CHANCE WITHOUT LOWERING THE MERCEDES NAME TO REACH CONSUMERS WHO CAN'T AFFORD ITS TRADITIONAL CARS ON THE OTHER HAND ANALYSTS SAY BOTH COMPANIES ARE PUTTING ACCEPTED BRAND NAMES AT RISK IF A WHEEL FALLS OFF THE SWATCHMOBILE IT COULD HURT WATCH SALES AND MERCEDES SALES NOTES ONE ANALYST ALTHOUGH MR HAYEK SAYS THE CAR WILL SUCCEED ON LOW PRICE AND A WITHIT IMAGE HIS OWN ENGINEER MR RYHINER SAYS THOSE FEATURES ALONE WON'T DO IT THERE ARE TOO MANY SMALL CARS ON THE MARKET ALREADY MR RYHINER A FORMER OFFICIAL OF SWITZERLAND'S ENVIRONMENTAL PROTECTION AGENCY SAYS THE ONLY UNIQUE SELLING POINT OF THE CAR WILL BE ITS ENVIRONMENTAL FRIENDLINESS WHEN OPERATING ON ELECTRICITY IT WILL EMIT VIRTUALLY NO POLLUTANTS AND WHEN OPERATING ON GASOLINE IT WILL BE ABLE TO GO EXCEPTIONAL DISTANCES ON A GALLON OF GAS THANKS IN PART TO AN ENGINE THAT WEIGHS ONETENTH OF ANY EXISTING ENGINE WITH EQUAL POWER STILL CONSIDERING HOW SLOWLY SOLAR PRODUCTS AND OTHER GREEN IDEAS HAVE TAKEN OFF HE SAYS MR HAYEK HAS A MASTERFUL PUBLICRELATIONS AND MARKETING CHALLENGE AHEAD OF HIM 9403040004 940304 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 250 MILLION OF FLOATINGRATE NOTES DUE MARCH 14 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT QUARTERLY AND PAY QUARTERLY AT NINE BASIS POINTS ABOVE THREEMONTH TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 169 MILLION OF NOTES DUE MARCH 11 1996 PRICED AT PAR TO YIELD 489 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FIVE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF TWOYEAR DEBENTURES PRICED THROUGH FREDDIE MAC AT PAR TO YIELD 487 BIOCRYST PHARMACEUTICALS INC INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 650 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO AND NEEDHAM & CO GLOBAL PRIVATIZATION FUND INC INITIAL OFFERING OF 70 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO JARDINE FLEMING INDIA FUND INC INITIAL OFFERING OF 107 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC AND ROBERT FLEMING INC FEDERAL HOME LOAN MORTGAGE CORP 800 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1702 IS BACKED BY THE AGENCY'S SEVENYEAR 65 BALLOON MORTGAGE SECURITIES AND 30YEAR 7 SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 2177 MILLION OF REMIC SECURITIES OFFERED BY DAIWA SECURITIES AMERICA INC THE OFFERING MULTIFAMILY REMIC 1994M2 IS BACKED BY THE AGENCY'S MULTIFAMILY MORTGAGEBACKED SECURITIES ADVANTA MORTGAGE CORP 1745 MILLION OF HOMEEQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE ISSUE ADVANTA MORTGAGE LOAN TRUST 19941 WAS RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP BASED ON AN INSURANCE WRAP PROVIDED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP THE 144 MILLION OF CLASS A1 CERTIFICATES WAS PRICED AS 63S AT 10003125 TO YIELD 624 AN 85BASISPOINT SPREAD ABOVE THE INTERPOLATED US TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF 36 YEARS THE 305 MILLION OF CLASS A2 CERTIFICATES WAS PRICED AS 63S AT 10034375 TO YIELD 619 AN 89BASISPOINT SPREAD ABOVE THE INTERPOLATED TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF 33 YEARS ADVANTA MORGTAGE IS A UNIT OF ADVANTA CORP GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION DUTCH GUILDERS OF 55 EUROBONDS DUE MARCH 25 1997 AT ISSUE PRICE 10069 VIA ABN AMRO BANK NV REOFFERED AT 9984 TO YIELD 556 A MARGIN OF 15 BASIS POINTS OVER INTERPOLATED DUTCH STATE LOAN YIELD CURVE BETWEEN FEBRUARY 1997 AND JULY 1998 FEES ONE CREDITO FONDIARIO E INDUSTRIALE SPA ITALY 120 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE MARCH 10 2004 AT ISSUE PRICE PAR VIA MONTE DEI PASCHI DI SIENA AND CHASE INVESTMENT BANK LTD PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR LIRE PLUS 100 BASIS POINTS CALLABLE ANNUALLY FROM MAY 31 1997 AT PAR FEES UNDISCLOSED 9403040003 940304 SHORTED OUT MANY NEW EXECUTIVES ARE BEING DISCHARGED WITH STUNNING SPEED CITING COMPETITIVE PRESSURE FIRMS CUT LOSSES FAST SOME GET TAKEN TO COURT FIRED BEFORE STARTING WORK BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL DAYS BEFORE BEGINNING A NEW MANAGEMENT JOB AT BALDWIN CO GARY M RYAN GOT A JARRING FIVEMINUTE PHONE CALL THE COMPANY HIS NEW BOSS SAID WAS RENEGING ON ITS JOB OFFER JUST A FEW DAYS EARLIER THE SOUTHERN CALIFORNIA DEVELOPER HAD PROMISED MR RYAN A 100000 HOUSINGASSISTANCE LOAN DESPITE A 50000 LOSS ON THE SALE OF THEIR DENVER HOME MR RYAN AND HIS FAMILY HAD BEEN PACKING THEIR BAGS AND LOOKING FORWARD TO A NEW LIFE THEN MR RYAN SAYS HE WAS FIRED BECAUSE A HIGHLEVEL BALDWIN OFFICIAL BELIEVED HE WAS OVERQUALIFIED AND WOULD LEAVE AS SOON AS A BETTER JOB SURFACED MY LIFE HAS NEVER BEEN THE SAME SAYS THE 51YEAROLD MR RYAN WHO NEVER MANAGED TO LAND A JOB WITH ANOTHER COMPANY DESPITE A YEAR AND A HALF OF LOOKING NOW BACK IN DENVER HE MAKES ENDS MEET BY RUNNING A LANDDEVELOPMENT BUSINESS FROM HIS HOME BALDWIN DECLINES TO COMMENT MR RYAN'S TRAUMA ILLUSTRATES HOW FIRINGS TEND TO HAPPEN THESE DAYS FAST MANY NEWLY HIRED MANAGERS AND PROFESSIONALS ARE OUT ON THE STREET AFTER ONLY MONTHS OR EVEN WEEKS ON THE JOB AND SURPRISING NUMBERS OF THEM ARE BOOTED EVEN BEFORE THEY GET IN THE DOOR NOT LONG AGO EMPLOYERS TYPICALLY GAVE THE NEWLY HIRED AT LEAST A YEAR TO PROVE THEMSELVES BUT IN A RECENT AMERICAN MANAGEMENT ASSOCIATION SURVEY NEARLY 22 OF THE EMPLOYERS QUESTIONED SAID THAT IN THE PAST TWO YEARS THEY HAD FIRED A PROFESSIONAL OR MANAGER AFTER LESS THAN THREE MONTHS FIVE YEARS AGO COMPANIES RARELY FIRED A MANAGER SO QUICKLY SAYS DAVID ALLEN CHIEF EXECUTIVE OF WILSON LEARNING CORP IN MINNEAPOLIS HE SAYS THAT IN THE PAST THREE YEARS THE MANAGEMENTDEVELOPMENT CONSULTING CONCERN HAS SEEN 75 OF ITS CLIENTS DISMISS A MANAGER OR PROFESSIONAL IN 90 DAYS OR LESS IN ADDITION COMPANIES SUCH AS APPLE COMPUTER INC AND AMERICAN EXPRESS CO SAY THEY ARE REDUCING PROBATION PERIODS FOR MANAGERS AND PROFESSIONALS PRUDENTIAL INSURANCE CO OF AMERICA RECENTLY CUT SUCH PERIODS TO THREE OR SIX MONTHS FROM A YEAR DEPENDING ON THE JOB IN THE PAST WE WOULDN'T EVEN EVALUATE PEOPLE UNTIL AFTER THEIR ONEYEAR ANNIVERSARY SAYS WILLIAM THERRIEN PRUDENTIAL'S VICE PRESIDENT FOR HUMAN RESOURCES NOW PEOPLE CAN GET WARNINGS VERY QUICKLY IF SOMEONE ISN'T MAKING IT WE TELL THEM EVEN IF IT'S IN THE FIRST WEEK HE SAYS FIRED EMPLOYEES SAY EARLY DISMISSALS PUSH COMPANIES' LOYALTY TO THEIR WORKERS TO NEW DEPTHS UNDER PRESSURE TO RESTRUCTURE COMPANIES FIRST OVERCAME THEIR RELUCTANCE TO DISMISS LONGTERM EMPLOYEES WITH GENEROUS SEVERANCE PACKAGES NOW CRITICS SAY THEY AREN'T RELUCTANT TO DROP NEWCOMERS FAST AND WITH LITTLE OR NO SEVERANCE THERE IS A DEHUMANIZATION GOING ON WITHIN CORPORATIONS CHARGES CLIFF PALEFSKY A WRONGFULTERMINATION ATTORNEY IN SAN FRANCISCO SOME COMPANIES SAY TODAY'S PRESSURES LEAVE THEM LITTLE CHOICE SOME PRUDENTIAL UNITS MR THERRIEN SAYS ARE SO LEAN THAT MANAGERS NEED THE RIGHT PEOPLE IMMEDIATELY AND CAN'T WAIT FOR A NEW EMPLOYEE WHO ISN'T LIKELY TO COME UP TO SPEED QUICKLY AND WITH SO MANY ABLE PEOPLE OUT OF WORK COMPANIES KNOW THEY CAN FIND REPLACEMENTS QUICKLY IN THE PAST FIVE YEARS A RECORD 14 MILLION EXECUTIVES MANAGERS AND ADMINISTRATIVE PROFESSIONALS HAVE LOST THEIR JOBS THE BUREAU OF LABOR STATISTICS CALCULATES ONLY 782000 SUCH WORKERS LOST THEIR JOBS BETWEEN 1981 AND 1986 WITH SUCH A TREMENDOUS POOL OF TALENTED PEOPLE OUT THERE YOU MIGHT AS WELL GET THE ONE WHO WILL WORK OUT BEST COMMENTS EDWARD WILD WHO HEADS A LOS ANGELES NEWSLETTERPUBLISHING COMPANY MR WILD SAYS THAT LAST FALL HE FIRED A NEW SALES EXECUTIVE BEFORE THE MAN ARRIVED ON THE JOB EVEN THOUGH THE COMPANY HAD INSTALLED 5000 WORTH OF COMPUTER EQUIPMENT IN HIS HOME ONE REASON THE EXECUTIVE HAD PURCHASED A FLASHY CAR WITH HIS COMPANY AUTOMOBILE ALLOWANCE RAISING CONCERN THAT HE WOULDN'T FIT INTO THE COMPANY'S CONSERVATIVE CULTURE AND MIGHT WASTE MONEY MR WILD SAYS SOME COMPANIES ACT OUT OF DESPERATION HONEY HILL FARMS INC FINANCIALLY STRESSED AND URGENTLY NEEDING TO BOOST SALES FIRED THOMAS TIPP AS ITS CHIEF EXECUTIVE AFTER JUST ONE MONTH AND FOUR DAYS EVEN SO WE WAITED TOO LONG SAYS ROBERT BLEDSOE A PARTNER AT THE PRIVATELY HELD MAKER OF SOFTSERVE FROZENYOGURT MIX WE REALLY SHOULD HAVE TERMINATED THE RELATIONSHIP AFTER THE FIRST WEEK OR SO MR BLEDSOE AND FRED DI COSALA THE SAN FRANCISCO COMPANY'S FOUNDER AND CHAIRMAN HAD WOOED MR TIPP AWAY FROM A GENERALMANAGER POST AT A BOSTON YOGURT COMPANY RECALLS MR TIPP THEY OFFERED ME THE WORLD SAYS MR BLEDSOE WE HAD HIGH EXPECTATIONS MR TIPP SAYS HE HIT THE GROUND RUNNING IN HIS FIRST WEEK HE DEVELOPED A PLAN TO ADD 30 TO 40 PEOPLE TO THE STAFF AND ALSO SOME NEW PRODUCT LINES THESE WERE PLANS THAT I THOUGHT WOULD HELP TURN THE COMPANY AROUND HE SAYS BUT THE OWNERS BELIEVED THAT INCREASING SALES QUICKLY WAS MORE IMPORTANT NEW PRODUCTS WOULD TAKE TOO LONG TO GET TO MARKET AND THE COMPANY COULDN'T AFFORD TO EXPAND STAFF IN A COUNSELING SESSION THE BOARD TOLD MR TIPP HIS PLAN WAS WAY OFF TARGET MR BLEDSOE RECALLS IT WAS A NICE PLAN BUT THE WRONG COMPANY DESPITE THE WARNING MR BLEDSOE SAYS MR TIPP CONTINUED TO FOCUS ON IMPROVING OPERATIONS RATHER THAN RAISING SALES QUICKLY SHORTLY AFTER FIRING MR TIPP HONEY HILL FARMS ENTERED BANKRUPTCY PROCEEDINGS WE WERE VERY DISAPPOINTED WE REALIZED THAT TOM WOULD BE EXCELLENT FOR A COMPANY WITH THE RIGHT CAPITALIZATION BUT NOT FOR ONE HAVING FINANCIAL TROUBLES MR BLEDSOE EXPLAINS MAYBE WE COULD HAVE SAVED THE COMPANY WITH THE RIGHT PERSON MR TIPP IS NOW A DIVISION PRESIDENT FOR TCBY ENTERPRISES INC IN DALLAS OTHER PEOPLE ARE LOSING OUT EARLY BECAUSE OF CORPORATE DOWNSIZING THOMAS MOAK WAS OUT JUST THREE WEEKS AFTER HE HAD BEEN HIRED AS GENERAL MANAGER OF CARRANO TRUCKING CO IN LOS ANGELES THE COMPANY WAS REDUCING STAFF IN SOUTHERN CALIFORNIA'S RECESSION STILL OTHERS GET SACKED BECAUSE THEY DON'T REALLY HAVE THE SKILLS THEY CLAIM EMPLOYERS SAY SHARPER COMPETITION FOR JOBS IS TEMPTING MORE APPLICANTS THAN IN THE PAST TO LIE THE WORK IN AMERICA INSTITUTE RECENTLY FIRED AN ACCOUNTANT AFTER JUST ONE WEEK BECAUSE SHE DIDN'T KNOW HOW TO OPERATE A CRUCIAL SPREADSHEET THAT SHE HAD CLAIMED TO HAVE MASTERED IT BROKE MY HEART TO FIRE HER SAYS JEROME ROSOW PRESIDENT OF THE NONPROFIT RESEARCH GROUP IN SCARSDALE NY BUT WE NEEDED SOMEONE WHO WAS FAMILIAR WITH THE PROGRAM BECAUSE NO ONE ELSE WAS BUT MANY EMPLOYEES ARE LOSING THEIR JOBS PARTLY BECAUSE AN OLD TABOO AGAINST FIRING PROFESSIONALS AND MANAGERS IS ERODING IN THE PAST YOUR REPUTATION WAS ON THE LINE IF YOUR HIRE DIDN'T WORK OUT SO YOU DID EVERYTHING YOU COULD TO MAKE THEM BETTER EXPLAINS T QUINN SPITZER CHIEF EXECUTIVE OF KEPNERTREGOE INC A PRINCETON NJ MANAGEMENTCONSULTING FIRM NOW YOUR REPUTATION IS ON THE LINE IF YOU DON'T GET RID OF THEM FAST ENOUGH INDEED MANY THINK A QUICK CHOP IS BEST FOR ALL CONCERNED WHEN THINGS AREN'T WORKING OUT BOTH PARTIES LOSE SAYS GARY BILLINGS HUMANRESOURCES DIRECTOR AT LINTAS WORLDWIDE A NEW YORK ADVERTISING GIANT IT'S MORE HUMANITARIAN TO TAKE IMMEDIATE ACTION YET MANY FIRED EMPLOYEES ARE SEEKING LEGAL HELP JOSEPH GARRISON A NEW HAVEN CONN LAWYER WHO IS PRESIDENT OF THE NATIONAL EMPLOYMENT LAWYERS ASSOCIATION SAYS UP TO 10 OF HIS FIRM'S CASES NOW INVOLVE MANAGERS AND PROFESSIONALS FIRED AFTER LESS THAN THREE MONTHS THREE YEARS AGO HE ADDS SUCH CASES WERE RARE WITH THE TABOO AGAINST SUCH FIRINGS FADING MANY COMPANIES ARE WIELDING THE AX ARBITRARILY FIRED EMPLOYEES CONTEND AMMIRATI & PURIS INC FIRED DAVID C LEHMKUHL FROM A 125000AYEAR JOB AFTER FOUR MONTHS BECAUSE THE NEW YORK ADVERTISING AGENCY DECIDED HE STUTTERED TOO MUCH ACCORDING TO A LAWSUIT HE FILED IN NEW YORK STATE COURT IN MANHATTAN TWO DAYS BEFORE THOMAS SHEPPARD WAS TO START WORK AT MORGAN KEEGAN & CO THE MEMPHIS BROKERAGE FIRM SEPARATED HIM HIS GRAVE MISTAKE ACCORDING TO A LAWSUIT HE FILED IN SUPERIOR COURT IN SAN FRANCISCO HE HAD TURNED UP AT THE OFFICE WEARING JEANS AND A TSHIRT WHILE ON A HOUSEHUNTING TRIP BOTH COMPANIES SETTLED THE CASES OUT OF COURT AND DECLINE TO COMMENT BUT FORMALITY ISN'T ALWAYS SAFE EITHER CT JENKINS SAYS SHE WAS DISMISSED AFTER THREE DAYS AS A MARKETING VICE PRESIDENT WITH A PHOENIX REALESTATE DEVELOPER LAST SUMMER SHE SAYS HER BOSS TOLD HER AND INCLUDED IN A TERMINATION REPORT THAT SHE WAS TOO SOMBER ON THE JOB BESIDES HER DECLINING TO HAVE LUNCH WITH SOME COLLEAGUES LED THE COMPANY TO BELIEVE SHE WOULDN'T BE A TEAM PLAYER AND THE REPORT INDICATED DOUBT THAT SHE WOULD FIT INTO THE CORPORATE CULTURE IN ADDITION THE COMPANY HAD FOUND SOMEONE IT CONSIDERED BETTERSUITED IT WAS STUNNING SAYS MS JENKINS WHO HAD LEFT A FASTTRACK MANAGEMENT JOB WITH A NATIONAL BANKING COMPANY I TOLD THEM GIMME A BREAK I WAS JUST TRYING TO GET SETTLED' BUT THEY ALREADY HAD THEIR MINDS MADE UP HOW CAN A COMPANY POSSIBLY MAKE A DECISION ABOUT YOU AFTER JUST THREE DAYS SOME COMPANIES THINK THEY CAN AVOID LAWSUITS BY FIRING PEOPLE QUICKLY BEFORE THEY BECOME ENTRENCHED IN THE AMERICAN MANAGEMENT ASSOCIATION SURVEY THAT FOUND 22 OF THE RESPONDING EMPLOYERS HAD FIRED A NEWLY HIRED MANAGER OR PROFESSIONAL AFTER LESS THAN THREE MONTHS 22 OF THAT GROUP SAID THEY WERE TERMINATING PEOPLE FASTER TO REDUCE THE THREAT OF WRONGFULDISCHARGE SUITS 13 SAID THEY WANTED TO AVOID COSTLY SEVERANCE PAYMENTS AND 28 SAID COMPETITIVE PRESSURES FORCE THEM TO FIND A PERFECT MATCH WHEN HIRING SOMEONE THE LEGAL STRATEGY APPARENTLY WORKS MS JENKINS WHO DIDN'T HAVE AN EMPLOYMENT CONTRACT DISCOVERED SHE COULDN'T SUE WORKERS IN ARIZONA LIKE THOSE IN MOST STATES ARE ATWILL EMPLOYEES THAT IS EMPLOYERS CAN FIRE FOR ANY REASON OR NONE AT ALL AND WITHOUT WARNING BUT ONCE AN EMPLOYEE ESTABLISHES TENURE A PERIOD OF TIME THAT VARIES BUT USUALLY RUNS SIX MONTHS TO A YEAR COMPANIES HAVE A HARDER TIME JUSTIFYING A FIRING IF THEY CAN'T ESTABLISH REASONABLE CAUSE IN STATES WITH STRONG EMPLOYEERIGHTS LAWS COMPANIES HAVE BEEN TACKING EMPLOYMENTATWILL CLAUSES ONTO INSURANCE FORMS PENSION AGREEMENTS AND OTHER DOCUMENTS ABOUT FOUR YEARS AGO FOR INSTANCE FIREMAN'S FUND INSURANCE CO STARTED INCLUDING AN EMPLOYMENTATWILL CLAUSE ON ITS JOB APPLICATIONS PEOPLE ARE SIGNING THEIR RIGHTS AWAY AND THEY DON'T EVEN REALIZE IT SAYS PAUL TOBIAS AN EMPLOYMENT ATTORNEY IN CINCINNATI REGARDLESS OF ANY LEGAL QUESTIONS RAPID DISMISSALS CAN BE TRAUMATIC A NEWLY HIRED CALIFORNIA EXECUTIVE WHO HAD QUIT HIS OLD JOB AND WAS PREPARING TO MOVE ACROSS THE COUNTRY WAS FIRED WHEN THE NEW COMPANY LEARNED THAT HIS WIFE HAD CANCER IN A SEEMINGLY INNOCUOUS TELEPHONE CALL TO HIS NEW EMPLOYER HE HAD ASKED A FEW QUESTIONS ABOUT THE JOB AND CONFIDED THAT HIS WIFE WAS TERMINALLY ILL A FEW DAYS LATER THE COMPANY CALLED AND RENEGED ON ITS JOB OFFER IT BLAMED A TIGHT BUDGET NOW THE EXECUTIVE AND HIS FAMILY LEAD A PRECARIOUS LIFE UNABLE TO EXPLAIN THE SUDDEN DEPARTURE WITHOUT REVEALING HIS WIFE'S COSTLY ILLNESS HE IS SEARCHING FOR WORK IN VAIN MEANWHILE HIS WIFE'S MEDICAL BILLS ARE SAPPING THE FAMILY'S SAVINGS MR RYAN THE EXECUTIVE FIRED BY BALDWIN CO SAYS THE EVENT PROBABLY WAS RESPONSIBLE FOR THE END OF MY CAREER OFTEN NOT KNOWING WHETHER HE COULD COVER RENT HE SAYS HE STARTED LIQUIDATING ASSETS TO PAY BILLS HE HAD TO STOP SUPPORTING A SON IN COLLEGE AND ASK THE YOUNG MAN'S GRANDPARENTS FOR HELP MR RYAN WHO SETTLED A BREACHOFCONTRACT SUIT AGAINST BALDWIN LAST AUGUST SAYS HE FOUGHT A SEVERE BOUT OF DEPRESSION THAT AT TIMES KEPT HIM AWAKE ALL NIGHT AND IN BED MOST OF THE DAY AND HIS MARRIAGE ALMOST COLLAPSED THE STRESS WAS JUST PARALYZING I COULDN'T EVEN MOVE HE SAYS IF IT WEREN'T FOR MY RELIGIOUS FAITH I DON'T THINK I WOULD HAVE BEEN ABLE TO SURVIVE IT 9403040002 940304 HOUSE BUDGET PANEL APPROVES OUTLINES OF CLINTON'S 15 TRILLION FISCAL '95 PLAN BY JOHN HARWOOD AND GREG HITT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BUDGET COMMITTEE VOTING ALONG PARTY LINES APPROVED THE OUTLINES OF PRESIDENT CLINTON'S 15 TRILLION FISCAL 1995 BUDGET AND DEFERRED AN INTERNAL DEMOCRATIC DISPUTE OVER DEFENSE SPENDING DEMOCRATIC LIBERALS LED BY REP BARNEY FRANK HAD THREATENED TO HOLD UP THE RESOLUTION FOR THE YEAR THAT BEGINS OCT 1 IN AN ATTEMPT TO SHIFT SOME 11 BILLION IN BUDGET AUTHORITY FROM DEFENSE TO DOMESTIC PROGRAMS OVER THE NEXT FOUR YEARS BUT THE MASSACHUSETTS DEMOCRAT RAN INTO OPPOSITION FROM PARTY CONSERVATIVES AND THEY PUT OFF A SETTLEMENT BY AGREEING THAT MR FRANK COULD PRESS HIS CASE WHEN THE BUDGET RESOLUTION REACHES THE HOUSE FLOOR NEXT WEEK I WANT A FAIR CHANCE SAID MR FRANK BUT GIVEN STRONG OPPOSITION FROM THE WHITE HOUSE HIS PROSPECTS FOR PREVAILING AREN'T BRIGHT THE TOUGHEST TASK FACING COMMITTEE MEMBERS WAS FINDING 3 BILLION IN NEW SPENDING CUTS TO OFFSET CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT ADMINISTRATION PROGRAMS WOULD COST SLIGHTLY MORE THAN THE WHITE HOUSE HAD PROJECTED THE COMMITTEE ALSO REORDERED SOME OF THE PRESIDENT'S SUGGESTED PRIORITIES ADDING BACK SOME 494 MILLION FOR EXAMPLE FOR LOWINCOME ENERGY ASSISTANCE WHILE TRIMMING PROPOSED INCREASES FOR RESEARCH IN NEW TECHNOLOGIES THESE CHANGES WHICH AREN'T BINDING ON THE HOUSE COMMITTEES THAT ACTUALLY APPROPRIATE MONEY FORESHADOW THE DIFFICULT TRADEOFFS AHEAD BETWEEN EXISTING PROGRAMS AND MR CLINTON'S PROPOSED INVESTMENTS AS CONGRESS STRUGGLES TO HOLD SPENDING BELOW FIXED CAPS SET IN THE DEFICITREDUCTION PROGRAM THAT PASSED LAST YEAR COMMITTEE PASSAGE CAME AFTER REPUBLICANS UNSUCCESSFULLY OFFERED A SERIES OF AMENDMENTS AND AN ALTERNATIVE FIVEYEAR BUDGET DESIGNED TO SHARPEN POLITICAL DIFFERENCES WITH DEMOCRATS THE ALTERNATIVE DEFINES THEM AND IT DEFINES US SAID REP JOHN KASICH OF OHIO RANKING REPUBLICAN ON THE BUDGET PANEL LACKING A CLINTON TAX INCREASE TO SHOOT AT REP KASICH MOVED TO CREATE A TAX ISSUE BY PROPOSING A 500PERCHILD CREDIT FOR FAMILIES WITH INCOMES BELOW 200000 THE TAX BREAK WOULD COST SOME 103 BILLION OVER FIVE YEARS THE GOP ALTERNATIVE WOULD ALSO PAY FOR SLIMMEDDOWN HEALTH REFORM AND CRIME PROGRAMS AND RESTORE TAXDEDUCTIBLE INDIVIDUAL RETIREMENT ACCOUNTS FOR ALL INCOME LEVELS DESPITE ALL THIS MR KASICH INSISTS HIS BUDGET WOULD STILL REDUCE THE DEFICIT BY 150 BILLION MORE THAN MR CLINTON'S BUDGET WOULD OVER FIVE YEARS BY CUTTING HEALTH AND WELFARE SPENDING BUREAUCRATIC OVERHEAD AND BY PRIVATIZING SUCH FEDERAL OPERATIONS AS THE AIRTRAFFIC CONTROL SYSTEM WHAT MR KASICH'S PROPOSAL DOESN'T DO IS COME CLOSE TO ELIMINATING THE DEFICIT A GOAL HE SAYS HE'D ENSHRINE IN THE CONSTITUTION THROUGH A BALANCEDBUDGET AMENDMENT THE GOP PLAN PROPOSES A 176 BILLION DEFICIT FOR 1999 THAT'S JUST TWO YEARS BEFORE THE EFFECTIVE DATE OF THE AMENDMENT BEING PUSHED IN THE HOUSE IT'S NOT INTELLECTUALLY CREDIBLE TO PROPOSE A BALANCED BUDGET OVER THE NEXT FIVE YEARS MR KASICH EXPLAINED SAYING THE TASK WOULD LIKELY TAKE TWICE THAT LONG 9403040095 940211 LETTERS TO THE EDITOR DOCTORS BECOME AN EASY TARGET IN REGARD TO PRINCETON HEALTH ECONOMIST UWE REINHARDT WHO WAS QUOTED AS SAYING THAT PHYSICIANS CAN STILL KEEP THEIR MERCEDES BUT INSTEAD OF GOING HOME AT 5 O'CLOCK YOU GO HOME AT 530 SOME STATES TRY TAXING DOCTORS JAN 14 I AM CURRENTLY IN MY NINTH YEAR OF MEDICAL PRACTICE AND HAVE YET TO FINISH MY WORKDAY AT 5 PM LIKE MANY OF MY COLLEAGUES 10 TO 14 HOUR DAYS ARE QUITE TYPICAL I DO NOT OWN A MERCEDES BUT INSTEAD DRIVE A CHRYSLER WOULD PROF REINHARDT OBJECT TO A 2 TAX BEING PLACED ON THE SALARIES OF PROFESSORS IN ORDER TO IMPROVE THE QUALITY OF EDUCATION IN INNERCITY SCHOOLS WITH HEALTH POLICY BEING PLANNED BY INDIVIDUALS WHO HARBOR SUCH STEREOTYPICAL VIEWS BOTH HARDWORKING PHYSICIANS AND THE PATIENTS WE CARE FOR ARE CERTAIN TO SUFFER FROM THE PROPOSED CHANGES BEING MADE IN WASHINGTON IN REGARD TO YOUR ARTICLE CONCERNING THE TAXING OF DOCTORS I WAS SOMEWHAT PERPLEXED BY MR REINHARDT'S SIMPLISTIC ADVICE TO SIMPLY WORK LONGER AND SEE MORE MEDICAID PATIENTS TO PAY ADDITIONAL TAXES IT HAS BEEN OUR EXPERIENCE THAT FEES PAID BY MEDICAID OFTEN FAIL TO COVER THE OVERHEAD AND COST OF EXAMINING AND TREATING MEDICAID PATIENTS PERHAPS THE ESTEEMED HEALTH ECONOMIST MIGHT EXPLAIN TO US POORLY EDUCATED PHYSICIANS HOW THE ADDITIONAL OVERHEAD EXPENSE OF TAXES AND OVERTIME PAY WOULD ALLOW US TO SEE MORE MEDICAID PATIENTS WHEN WE NOW LOSE MONEY FOR EVERY SUCH PATIENT SEEN LAWMAKERS WILL ALWAYS SEEK TO TAX THOSE GROUPS OF SOCIETY THAT ARE PERCEIVED AS HAVING LARGE AMOUNTS OF MONEY WITH RELATIVELY LITTLE POLITICAL POWER UNFORTUNATELY THE ONLY EFFECT THAT ADDITIONAL TAXES ON DOCTORS WILL HAVE IS TO REDUCE THE NUMBERS OF PHYSICIANS WHO ARE ABLE OR WILLING TO PROVIDE HEALTH CARE FOR THE POOR I READ MR REINHARDT'S MERCEDES QUOTE AT 930 PM AFTER AN EXHAUSTING 12HOUR SHIFT IN AN EMERGENCY DEPARTMENT AND BEGAN SEETHING I KNOW OF NO PHYSICIANS WHO MANAGE TO LEAVE WORK AT 5 PM AND FIND MR REINHARDT'S GRATUITOUS SUGGESTION OF JUST WORKING UNTIL 530 INSULTING WHAT MAKES MATTERS WORSE IS THAT HE IS BILLED AS A HEALTH ECONOMIST AND SHOULD KNOW BETTER THE STATISTICS HAVE BEEN PUBLISHED REPEATEDLY THAT THE AVERAGE DOCTOR ALREADY PUTS IN A 60HOUR WEEK MAKING IT IMPOSSIBLE TO FINISH BY 5 PM I AM SURE I SPEAK FOR PRACTICALLY ALL PHYSICIANS WHEN I SAY THAT WE'D BE DELIGHTED TO PAY AN ADDITIONAL 2 TAX TO ANY GOVERNMENT THAT COULD GUARANTEE WE'D BE DONE BY 530 IT IS TRULY IN THE REALM OF THE INCREDIBLE THAT MR REINHARDT BELIEVES PHYSICIANS CAN REACH OUT FOR NEW PATIENTS AND GO HOME AT 530 IN ORDER TO KEEP THEIR MERCEDES MY HUSBAND IS A CARDIOVASCULAR ANESTHESIOLOGIST HE LEAVES HOME AT 630 AM WORKS A FULL DAY OFTEN WITH NO CHANCE TO EAT LUNCH AND COMES HOME BETWEEN 730 AND 830 HE IS AT THE HOSPITAL FOR A FULL 24 HOURS STRAIGHT ON AN AVERAGE OF ONCE A WEEK AND FOR 48 HOURS STRAIGHT ABOUT EVERY FIFTH WEEKEND HE PAYS FOR OFFICE STAFF RESEARCH STAFF INSURANCE OF EVERY KIND IMAGINABLE AND BEARS THE RESPONSIBILITY OF RUNNING A CORPORATION HE SPENDS TIME AS A QUESTION EDITOR AND ORAL BOARD EXAMINER IN HIS MEDICAL SPECIALTY WRITES ARTICLES FOR JOURNALS CHAPTERS FOR BOOKS AND PARTICIPATES IN THE TRAINING OF PHYSICIANS MR REINHARDT EXHIBITS A GENEROUS AMOUNT OF MISINFORMATION ABOUT THE MODERN PRACTICE OF MANY PHYSICIANS WE DON'T HAVE A MERCEDES AT LEAST NOT LITERALLY WHAT WE HAVE TO REPLACE IT IS A 17YEAROLD FRESHMAN ENROLLED IN MR REINHARDT'S ACADEMIC INSTITUTION PERHAPS MR REINHARDT WOULD NOW BE HAPPY TO CONTRIBUTE 25 OF HIS INCOME TO OFFSET THE RISING COSTS OF COLLEGE TUITION UNTIL THEN I WILL SIMPLY REMAIN DISMAYED AT THE ATTITUDES THAT EXIST TOWARD A PROFESSION THAT HAS BECOME AN EASY TARGET FOR DISCRIMINATORY LEGISLATION SEE RELATED LETTER LETTERS TO THE EDITOR I'M ON DOCTORS' SIDE FORGET THAT QUOTE WSJ MARCH 4 1994 9402110167 YY94 MM03 9403040093 940208 LEISURE & ARTS TELEVISION FONZ NO MORE HENRY WINKLER IS OF TWO MINDS ABOUT WORLD EVERYONE KNOWS THAT ACTORS ARE VERY DIFFERENT IN SOCALLED REAL LIFE FROM THE CHARACTERS THEY PLAY ON SCREEN OR STAGE ACTORS HAVE PRIVATE LIVES AND PRIVATE POINTS OF VIEW PROFESSIONALLY HOWEVER THEY HAVE TO THINK THEMSELVES INTO THE PERSONALITY AND THE WORLDVIEW OF THEIR ROLE THIS IS THE PROCESS THAT THE GREAT RUSSIAN DIRECTOR KONSTANTIN STANISLAVSKY REFERRED TO IN THE TITLE OF HIS CLASSIC WORK AN ACTOR PREPARES 1926 IT IS ALSO IMPLIED BY THE WORD PERSONA WHICH COMES TO US FROM THE LATIN WORD FOR THE MASK WORN BY ACTORS IN THE THEATER OF ANCIENT ROME GREAT ACTORS ARE MASTERFULLY ADEPT AT KEEPING THIS CRUCIAL DISTINCTION STRAIGHT IN THEIR MINDS AN EXTRAORDINARILY GRAPHIC EXAMPLE OF HOW THE SAME THESPIAN CAN EXPRESS TWO PEOPLE'S VOICES OUT OF BOTH SIDES OF THE SAME MOUTH RECENTLY CAME TO LIGHT IN THE FORM OF A PRESSRELEASE INTERVIEW WITH HENRY WINKLER THE UNNAMED INTERVIEWER POSES THE SAME QUESTION TO MR WINKLER AND TO MR WINKLER/MONTY RICHARDSON MONTY RICHARDSON IS OF COURSE THE EPONYMOUS HERO OF MONTY A NEW FOXTV COMEDY SERIES ABOUT AN OUTRAGEOUS ULTRARIGHT TALK SHOW HOST MONTY AIRS TUESDAYS AT 8 PM ET THE INTERVIEW FOLLOWS VERBATIM Q DO YOU THINK BIRDS LIKE THE SPOTTED OWL SHOULD BE PROTECTED A MONTY YES SO THEY ARE PLUMP ENOUGH TO MAKE A GOOD HOLIDAY MEAL A HENRY WE HAVE TO TAKE CARE OF THE HOUSE WE LIVE IN BECAUSE THERE'S NOT GOING TO BE ANOTHER ONE THAT INCLUDES TAKING CARE OF ALL THE CREATURES ON THIS EARTH Q WHAT DO YOU THINK OF THE NEW CAMPUS SPEECH CODES A MONTY EVERYONE IS BUCKLING UNDER PRESSURE BEING TOO THINSKINNED YOU'RE TAKING AWAY FREEDOM OF SPEECH A HENRY IF WE AS A GROUP CAN NOT REALIZE THAT JUST RESPECTING EACH OTHER IS ONE OF THE CRUCIAL GUIDELINES TO GETTING ALONG WE'RE IN TROUBLE Q WHAT DO YOU THINK OF SCHOOLS MAKING PART OF THEIR CURRICULUM BOOKS LIKE HEATHER HAS TWO MOMMIES A MONTY IT'S A BIOLOGICAL IMPOSSIBILITY AND IF HEATHER HAS TWO MOMMIES THEY SHOULD WIN THE NOBEL PRIZE FOR SCIENCE A HENRY IF THAT'S WHAT'S HAPPENING IT'S SO IMPORTANT THAT WE DON'T STICK OUR HEADS IN THE SAND WE HAVE TO ADDRESS THESE LIFESTYLES AS PART OF OUR SOCIETY Q DO YOU THINK A WOMAN'S PLACE IS IN THE KITCHEN A MONTY YES 24 HOURS A DAY NO MAKE THAT 22 HOURS SHE CAN SPEND SOME TIME IN THE BEDROOM A HENRY YOU'RE TALKING TO A MAN WHOSE WIFE HAS A VERY BUSY LIFE AN IMPORTANT JOB SO NO Q WHAT DO YOU THINK OF USING ANIMALS FOR MEDICAL RESEARCH A MONTY AS LONG AS THEY DON'T DAMAGE THE SKINS FOR A GOOD COAT I DON'T MIND A HENRY IT'S PROBABLY A GOOD THING TO TAKE GOOD CARE OF THE ANIMALS THEY WERE HERE FIRST Q DO YOU THINK SEXUAL HARASSMENT IS A LEGITIMATE CONCERN FOR WOMEN IN THE WORKPLACE A MONTY COME ON IT'S PART OF THE SPORT AND FUN OF HAVING TO WORK WITH WOMEN AND SECRETLY WOMEN ENJOY IT TOO A HENRY VERY SIMPLY YOU TREAT OTHERS THE WAY YOU'D LIKE THEM TO TREAT YOU Q DO YOU THINK THE FILM AND TELEVISION INDUSTRY SHOULD BE MORE RESPONSIBLE REGARDING VIOLENCE IN THE MEDIA A MONTY I WONDER IF THERE'S ENOUGH VIOLENCE TO ERADICATE PART OF THE POPULATION OF THIS COUNTRY A HENRY I THINK IT'S A SMALL COMPONENT OF TODAY'S PROBLEMS WE NEED TO ADDRESS HEALTH CARE DAY CARE CHILD CARE EDUCATION FIRST TO BUILD A SENSE OF SELFRESPECT IN CHILDREN AND IN THE FAMILY SEE RELATED LETTER LETTERS TO THE EDITOR WINKLER WAS GREAT AS PARODY OF LIBERAL WSJ MARCH 4 1994 9402080113 YY94 MM03 9403040019 940217 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY IN SKATE DESIGN THE WHEELS OF PROGRESS HAVE FROZEN AXELS BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL LET'S PUT CLASS STRUGGLE ASIDE FOR A MOMENT AND LOOK AT OLYMPIC FIGURE SKATING FROM A DIFFERENT ANGLE HOW COME SKIERS LOOK LIKE THE FUTURE AND FIGURE SKATERS LOOK LIKE THE PAST OUTDOORS THE WHITE SLOPES OF NORWAY SWARM WITH FLASHY GLITZOID TERMINATOR INSECTS FROM SPACE FESTOONED WITH STEALTHTECH GEAR INDOORS ON STEEL BLADES SCREWED INTO BLACK OR WHITE COWLEATHER BOOTS WITH LACES EQUIPMENT ESSENTIALLY UNCHANGED SINCE BEFORE THE AMERICAN CIVIL WAR FIGURE SKATERS JUMP SPIN AND GLIDE LIKE GOOD LITTLE JACKS AND JILLS IN A TIME WARP SURE FIGURE SKATES HAVE BEEN TINKERED WITH A LOT STIFFER BOOTS FOR EXAMPLE MADE TRIPLE JUMPS POSSIBLE BUT THEY ARE BY FAR THE MOST ADVANCED OBSOLETE PIECE OF EQUIPMENT IN THE WINTER GAMES THE RESULT IS THAT FIGURE SKATING IS PERHAPS THE ONLY EVENT IN WHICH ATHLETIC PERFORMANCE IS BEING HELD BACK BY EQUIPMENT PERFORMANCE SURYA BONALY A 20YEAROLD GOLDMEDAL FAVORITE FROM FRANCE FOR EXAMPLE IS A GYMNAST WHO CAN DO QUADRUPLE JUMPS IF SHE CAN FIND A PAIR OF SKATES THAT WOULD LET HER LATELY SHE SAYS SHE CAN'T WHY EVERY OTHER OLYMPIC SPORT HAS NESTS OF BIOMECHANICAL ENGINEERING MAVENS MANIPULATING GRAPHITE LAMINATIONS TO IMPROVE PERFORMANCE AND SLICE HUNDREDTHS OF A SECOND OFF TIMES LATELY THERE HAVE BEEN FEARS ATHLETES ARE GOING TOO FAST NOT FIGURE SKATING FIGURE SKATING HAS SIDNEY BROADBENT HE'S A 72YEAROLD RETIRED AEROSPACE ENGINEER FOR MARTIN MARIETTA WHO HELPED TO PUT THE VIKING LANDER ON MARS HE'S ALSO AN AVID SKATER WHO TOOK A NASTY SPILL 17 YEARS AGO THE RESULT HE SAYS OF AN ATROCIOUS SHARPENING OF HIS BLADES THIS EVENTUALLY LED NOT ONLY TO HIS ACQUISITION OF AN ARTIFICIAL HIP BUT ALSO HIS INVENTION OF A MACHINE THAT IS THE OFFICIAL SKATE SHARPENER OF THE WINTER GAMES AND PRACTICALLY EVERY OTHER IMPORTANT SKATING COMPETITION IT'S CALLED SIMPLY THE ICESKATE SHARPENER AND COSTS ABOUT 1800 MR BROADBENT ALSO DESIGNED A SKATE CALLED THE COPLANAR AND WAS EXPERIMENTING WITH GRAPHITE TOE AND HEEL MOUNTS WHEN THE UNITED STATES FIGURE SKATING ASSOCIATION CUT OFF HIS RESEARCH FUNDS CITING OTHER NEEDS FOR 5000 IN SEED MONEY THAT WOULD HAVE KEPT US OLYMPIC COMMITTEE FUNDS FLOWING THE USFSA WHICH RULES AMERICAN FIGURE SKATING HAS BEEN VERY BUSY OF LATE AND NOT JUST SECONDGUESSING THE AMERICAN LEGAL SYSTEM ON MATTERS SUCH AS FELONIOUS ASSAULT IT HAS ALSO BUSY CELEBRATING ITS 73RD BIRTHDAY CRITICS SAY THAT'S 73 YEARS OF TRADITION UNHAMPERED BY PROGRESS THANKS TO ENORMOUS EFFORT AND ENDLESS COMMITTEE MEETINGS THE USFSA AND ITS UMBRELLA GROUP THE LUDDITEINFESTED INTERNATIONAL SKATING UNION HAVE SUCCESSFULLY PREVENTED FIGURE SKATING FROM BECOMING THE MULTIMILLIONDOLLAR ECONOMIC DYNAMO THAT PROMOTERS OF SPORTS LIKE SKIING TENNIS AND GOLF CLAIM IT COULD BE WITH BIGTIME COMPETITION ENDORSEMENTS AND TV FOR HALF THE AMERICAN PEOPLE THE FEMALE HALF IT'S THE MOST POPULAR SPECTATOR SPORT IT COULD BE THE FEMALE COUCH POTATO'S NFL WHILE SKIERS CAN FESTOON THEMSELVES WITH TRADEMARKS TO EARN MONEY INSTEAD OF WORKING THIRD SHIFT AT THE DOUGHNUT SHOP THE ISU RULEBOOK LIMITS SKATERS TO TWO TRADEMARKS NO BIGGER THAN SILVER DOLLARS BUT SKATERS LIVE IN MORTAL FEAR THAT ISU JUDGES WILL PUNISH THEM FOR DOING SO EVEN IN WHAT THE RULEBOOK CALLS THE KISS AND CRY POSTPERFORMANCE AREA WHERE THE TV CAMERAS HANG OUT THE ONLY THING AMATEUR ABOUT AMATEUR SPORTS LIKE THIS ONE ARE THE PEOPLE WHO ARE RUNNING THEM SAYS NYE LAVALLE CHAIRMAN OF SPORTS MARKETING GROUP A DALLAS MARKET RESEARCH FIRM MR BROADBENT PREFERS TO POLITELY REFER TO THE USFSA AS CONSERVATIVE AND HAS BEEN KNOWN TO USE THE WORD BUREAUCRATIC SERGEI ALESHINSKY PUTS IT ANOTHER WAY DON'T GET ME WRONG I'M PROUD TO BE AN AMERICAN BUT THIS SITUATION REALLY STINKS MR ALESHINSKY WASN'T ALWAYS AN AMERICAN HE GREW UP IN RUSSIA AND WON THE SOVIET NATIONAL JUNIORS FIGURESKATING CHAMPIONSHIP IN 1962 HE GOT HIS PHD IN MECHANICAL ENGINEERING AT MOSCOW UNIVERSITY SPECIALIZING IN HUMAN BODY MECHANICS USING PRECISION CAMERAS TO GET THREEDIMENSIONAL VIEWS OF BODY MECHANICS HE WORKED WITH SKATERS COSMONAUTS AND EVEN PIANO PLAYERS TO IMPROVE PERFORMANCE IN 1984 HE DEFECTED AND SPENT NEARLY A YEAR IN TURKISH JAILS AND REFUGEE CAMPS BEFORE COMING TO AMERICA IN 1985 HE BECAME THE USFSA'S SPORTS SCIENCE DIRECTOR AND SET ABOUT WITH MR BROADBENT AND DARYL PHILLIPS A DES MOINES IOWA PODIATRIST TO MOVE FIGURE SKATING OUT OF THE DARK AGES FOUR YEARS LATER HE QUIT IN DISGUST WHAT THIS TRIO FOUND WAS AN ORGANIZATION FIXATED ON FORM PRETTINESS ARTISTRY AND PRESENTATION AND WITH AN APPALLING LACK OF KNOWLEDGE ABOUT THE MECHANICAL OR TECHNICAL MEANS OF ACHIEVING THEM THERE ARE LOTS OF ENGINEERS INVOLVED IN SKIING FOR EXAMPLE SAYS MR ALESHINSKY BUT ENGINEERS AND FIGURE SKATERS ARE LIKE WELL LIKE FIRE AND ICE MOST SKATERS AND COACHES FOR EXAMPLE HAD ONLY VAGUE IDEAS ABOUT WHAT CONSTITUTED A PROPER SHARPENING AND NO UNDERSTANDING OF HOW TO GET ONE OTHER THAN TURNING THEIR SKATES OVER TO SOME OLD GUY IN THE BACK ROOM THEY KNOW NOTHING ABOUT BLADE ALIGNMENT ICEBLADE INTERFACE COEFFICIENTS OF FRICTION LEAN ANGLES BLADEBOOT ATTACHMENT VARIABLES TORQUE AND A HOST OF OTHER ELEMENTARY SCIENTIFIC PRINCIPLES ANY BUDDING 12YEAROLD ICE PRINCESS OR HER COACH SHOULD KNOW MIND YOU THESE PEOPLE KNOW ALL ABOUT HOW TO COVERTLY SPILL A PEPSI INTO A COMPETITOR'S BOOT OR DULL AN UNGUARDED BLADE'S EDGE WITH A FLICK OF A QUARTER AND THEY'RE EXPERTS AT PSYCH OUTS FIGURE SKATES HAVE A CONCAVE BOTTOM EDGE THE SIDES OF WHICH BITE INTO THE ICE ON THEM COMPETITORS USED TO PERFORM SCHOOL FIGURES OR GEOMETRIC PATTERNS LIKE AN 8 AND WERE JUDGED ON PRECISION AND GRACE FIGURE SKATING BECAME AN OLYMPIC EVENT AT THE 1908 SUMMER GAMES THE AMERICANS DIDN'T REALLY EMBRACE IT UNTIL A NORWEGIAN TEENAGER NAMED SONJA HENIE WON 10 STRAIGHT WORLD CHAMPIONSHIPS AND THREE OLYMPIC GOLDS AND WENT ON TO BE A MOVIE STAR HER SKATES IN THOSE MOVIES LOOK PRETTY MUCH LIKE TODAY'S SKATES THAT IS A BOOT WITH A CURVED SOLE AND ANGLED HEEL MADE FOR WALKING TO PRODUCE A WALKER'S GAIT WITH A BLADE MOUNT ON IT AS SKATERS GOT MORE ATHLETIC THE BOOT LEATHER GOT STIFFER AND HEAVIER BUT UNTIL MR BROADBENT'S COPLANAR CAME ALONG LITTLE ELSE CHANGED THE COPLANAR IS A FLATBOTTOMED BOOT BETTER FOR SKATING THAN WALKING SKATERS WHO TRY THEM LIKE THEM BOOT AND BLADE MAKERS HAVE STARTED MAKING THEM COACHES ARE RESISTANT BUT DARWIN LIVES ON ICE INCIDENTALLY THOSE DEADLY DULL COMPULSORY SCHOOL FIGURES WEREN'T DROPPED BY THE ISU UNTIL FOUR YEARS AGO THE US ASSOCIATION ALONG WITH CANADA BRITAIN AND NEW ZEALAND VOTED AGAINST DROPPING THEM SEE RELATED LETTER LETTERS TO THE EDITOR YOUR STORY LEFT ME SKATING ON THIN ICE WSJ MARCH 4 1994 9402180064 YY94 MM03 9403040001 940202 CIVILRIGHTS NOMINEE QUOTA CLONE BY CLINT BOLICK BY NAMING BOSTON LAWYER DEVAL PATRICK THE NATION'S TOP CIVILRIGHTSLAW ENFORCEMENT OFFICIAL BILL CLINTON CONFIRMED A FEAR HARBORED BY MANY WHO HOPED HE WOULD LIVE UP TO HIS NEW DEMOCRAT BILLING THAT THE PRESIDENT HAS WEDDED HIMSELF TO A HARDLEFT CIVILRIGHTS AGENDA THOUGH CHASTENED BY PUBLIC REPUDIATION OF THE RADICAL VIEWS ESPOUSED BY LANI GUINIER HIS FIRST NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS MR CLINTON HAS DIPPED INTO THE SAME PHILOSOPHICAL WELL FOR ALL HIS OTHER NOMINEES FOR KEY CIVILRIGHTS POSITIONS HE NEARLY DIVERGED FROM THIS PATH BY CHOOSING JOHN PAYTON FOR THE TOP POST BUT RETREATED WHEN THE CONGRESSIONAL BLACK CAUCUS QUESTIONED MR PAYTON'S IDEOLOGICAL BONA FIDES IN MR PATRICK MR CLINTON HAS SELECTED A STEALTH GUINIER A SIMILAR ACTIVIST PEDIGREE BUT WITHOUT DAMAGING LAWREVIEW ARTICLES DURING THE EARLY 1980S BOTH MR PATRICK AND MS GUINIER LITIGATED WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND LDF WHICH HAS RELENTLESSLY PRESSED FOR RACE QUOTAS BUSING AND MINORITY CONTRACT SETASIDES MR PATRICK NOW CHAIRS THE GROUP'S NEW ENGLAND STEERING COMMITTEE THOUGH MS GUINIER FOCUSED ON VOTINGRIGHTS CASES WHILE MR PATRICK ATTACKED THE DEATH PENALTY AND REPRESENTED CRIMINAL DEFENDANTS A CONSISTENT THREAD RUNS THROUGH THEIR EFFORTS AND THE ENTIRE LDF PROGRAM THE BELIEF THAT UNCONSCIOUS RACISM PERMEATES AMERICAN SOCIETY AND CAN BE REMOVED ONLY THROUGH RACECONSCIOUS SOCIAL ENGINEERING ONE PATRICK CASE IN PARTICULAR EXEMPLIFIES THIS IN MCCLESKY V KEMP A 1987 SUPREME COURT CASE MR PATRICK REPRESENTED WARREN MCCLESKY A BLACK MAN ACCUSED OF MURDER FOR ALLEGEDLY SHOOTING A POLICEMAN IN THE FACE DURING THE ROBBERY OF A FURNITURE STORE IN FULTON COUNTY GA A MIXEDRACE JURY SENTENCED MR MCCLESKY TO DEATH THE MCCLESKY CASE WAS PART OF LDF'S EFFORT TO ELIMINATE CAPITAL PUNISHMENT A GOAL ITS 198788 ANNUAL REPORT DESCRIBED AS FOR MORE THAN TWO DECADES LDF'S PRIORITY IN THE AREA OF CRIMINAL JUSTICE BUT LDF PRESENTED NO EVIDENCE THAT DISCRIMINATION INFECTED MR MCCLESKY'S TRIAL OR SENTENCE IN ANY WAY RATHER IT RELIED SOLELY ON STATISTICAL STUDIES SHOWING THAT MURDERERS OF WHITE VICTIMS WERE MORE LIKELY TO RECEIVE CAPITAL PUNISHMENT THAN MURDERERS WHOSE VICTIMS WERE BLACK THE STATISTICS ALSO SHOWED CURIOUSLY THAT A HIGHER PERCENTAGE OF WHITES THAN BLACKS WERE GIVEN CAPITAL PUNISHMENT WHEN THE VICTIMS WERE BLACK THIS STUDY WAS ENOUGH MR PATRICK ASSERTED TO STRIKE DOWN THE DEATH SENTENCE AS A VIOLATION OF THE EIGHTH AMENDMENT'S BAN ON CRUEL AND UNUSUAL PUNISHMENT AND THE 14TH AMENDMENT'S EQUALPROTECTION GUARANTEE MR PATRICK'S ARGUMENT WOULD HAVE FORCED THE SUPREME COURT TO ABANDON ITS RULE THAT VIOLATIONS OF EQUAL PROTECTION REQUIRE PROOF OF DISCRIMINATORY INTENT NOT JUST UNEQUAL OUTCOMES THE COURT DECLINED GIVEN THE MYRIAD PROTECTIONS ATTENDING THE DEATH PENALTY AND ABSENT EVIDENCE THAT DISCRIMINATION AFFECTED A PARTICULAR SENTENCE THE COURT RULED THAT STATISTICS ALONE WERE NOT ENOUGH TO CONDEMN THE WHOLE SYSTEM AS DISCRIMINATORY REGARDLESS OF ONE'S OPINION ON CAPITAL PUNISHMENT GENERALLY MR PATRICK'S ARGUMENT IS DISTURBING ON MULTIPLE LEVELS GRAFTING AN EQUALITYOFRESULTS STANDARD ONTO THE 14TH AMENDMENT WOULD RENDER UNCONSTITUTIONAL ANY GOVERNMENT POLICY THAT AFFECTS RACIAL GROUPS DIFFERENTLY LEADING INEVITABLY TO THE TYPE OF RACIAL GERRYMANDERING THAT CHARACTERIZES THE VOTING RIGHTS ACT WHICH USES A RESULTS STANDARD PRESIDENT CLINTON REJECTED THIS APPROACH DURING HIS CAMPAIGN WHEN HE ENDORSED EQUAL OPPORTUNITY RATHER THAN EQUALITY OF RESULTS AS HIS CIVILRIGHTS TOUCHSTONE THE PATRICK NOMINATION ALSO REFLECTS A TROUBLING TENDENCY BY MR CLINTON TO APPOINT JUDGES AND LAW ENFORCEMENT OFFICIALS WHO EXALT SOCIOLOGY AND PSYCHOLOGY OVER LAW LIKE MS GUINIER'S CONTENTION THAT UNCONSCIOUS RACISM PRODUCES UNEQUAL ELECTORAL RESULTS MR PATRICK'S ARGUMENT IN MCCLESKY RESTS ON THE PREMISE THAT FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES THIS PREMISE ANIMATED LDF'S LITIGATION AGENDA DURING MR PATRICK'S TENURE IN WHICH IT SUCCESSFULLY SOUGHT MASSIVE JUDICIALLY IMPOSED TAX INCREASES TO FUND A GOLDPLATED DESEGREGATION PLAN IN KANSAS CITY MO ARGUED IN FAVOR OF RACIAL QUOTAS FOR PUBLIC EMPLOYEES IN THE DISTRICT OF COLUMBIA NEW ORLEANS AND ELSEWHERE DEFENDED MINORITY CONTRACT SETASIDES AND PRESSED FOR CONTINUATION OF FORCED BUSING DECADES AFTER SEGREGATION HAD CEASED THOUGH MR CLINTON PROFESSED HE WOULDN'T HAVE NOMINATED LANI GUINIER IF HE HAD KNOWN HER VIEWS MR PATRICK'S IS THE LATEST IN AN UNBROKEN LINE OF APPOINTMENTS FROM THE RANKS OF THE SAME LIBERAL CIVILRIGHTS ESTABLISHMENT THAT PRODUCED MS GUINIER FOR HEAD OF THE US COMMISSION ON CIVIL RIGHTS MR CLINTON ELEVATED MARY FRANCES BERRY WHO IN 1985 OPINED THAT CIVILRIGHTS LAWS WERE NOT PASSED TO GIVE CIVIL RIGHTS TO ALL AMERICANS BUT ONLY TO DISFAVORED GROUPS INCLUDING BLACKS HISPANICS AND WOMEN MS BERRY IS SO STRIDENT THAT HER APPOINTMENT VIRTUALLY ENSURES THIS MORIBUND AGENCY CONTINUED IRRELEVANCY MEANWHILE NORMA CANTU ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE EDUCATION DEPARTMENT LITIGATED BUSING CASES FOR THE MEXICANAMERICAN LEGAL DEFENSE AND EDUCATION FUND AND SHIRLEY WILCHER WHO MR CLINTON TAPPED TO HEAD THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS AT THE LABOR DEPARTMENT TOILED IN THE EARLY '80S FOR THE WOMEN'S LEGAL DEFENSE FUND MS CANTU HAS ALREADY TAKEN STEPS TO REVERSE PREVIOUS POLICIES RESTRICTING RACIAL CONSIDERATIONS IN COLLEGE SCHOLARSHIPS SINCE MR PATRICK HAS NO PUBLISHED WRITINGS THE SENATE JUDICIARY COMMITTEE SHOULD CLOSELY QUESTION HIS POSITIONS ON KEY CIVILRIGHTS ISSUES FOR INSTANCE DOES MR PATRICK SUPPORT KEY SUPREME COURT PRECEDENTS THAT 1 REQUIRE A SHOWING OF DISCRIMINATORY INTENT TO ESTABLISH CONSTITUTIONAL VIOLATIONS 2 LIMIT RACECONSCIOUS REMEDIES TO EXTREME CASES OF IDENTIFIED PAST DISCRIMINATION THAT CANNOT BE REDRESSED IN ANY OTHER MANNER AND 3 LET SCHOOL DISTRICTS FREE THEMSELVES FROM BUSING ORDERS AND RETURN TO LOCAL CONTROL AFTER DESEGREGATION ORDERS HAVE BEEN FULFILLED LDF FOR WHICH MR PATRICK SERVED AS AN ATTORNEY AND OF WHICH HE IS NOW A DIRECTOR TOOK THE OPPOSITE POSITION IN ALL THESE CASES EITHER MR PATRICK DOESN'T SHARE LDF'S PHILOSOPHY WHICH WOULD SEEM STRANGE OR HIS VIEWS ARE AT ODDS WITH THE MODERATE STANCE MR CLINTON TOOK DURING THE CAMPAIGN IN EITHER CASE A BIGGER QUESTION PERSISTS WHY DOES MR CLINTON RETURN TO THE SAME IDEOLOGICAL RETREADS FOR HIS CIVILRIGHTS NOMINATIONS IN THE NEW YORK TIMES EARLIER THIS WEEK COLUMNIST ANTHONY LEWIS ATTACKS ME AND THIS NEWSPAPER ARGUING THAT MS GUINIER WAS MISCHARACTERIZED IN THESE PAGES AS A QUOTA QUEEN THE LARGER ISSUE THOUGH IS NOT ONE SIMPLY OF QUOTAS ALTHOUGH I WAS CORRECT BUT THE PRESIDENT'S HABIT OF CHOOSING NOMINEES WHO VIEW THE WORLD THROUGH A RACIAL PRISM THIS TIME THE PRESIDENT COULD HAVE STRUCK A POSITIVE COURSE BY SELECTING LIBERALS WHO HAVE WRITTEN THOUGHTFULLY ABOUT THESE ISSUES SUCH AS STEPHEN CARTER OF YALE OR RANDALL KENNEDY OF HARVARD BUT MR CLINTON UNFAILINGLY TAKES HIS CUES FROM A CIVILRIGHTS ESTABLISHMENT THAT FOR 25 YEARS HAS HELD SWAY INSIDE THE WASHINGTON BELTWAY EVEN AS ITS INFLUENCE IN THE REAL WORLD HAS RAPIDLY DIMINISHED AS GROUPS LIKE LDF HAVE MOVED LEFT THEY'VE DISTANCED THEMSELVES FROM THEIR PURPORTED CONSTITUENTS WHICH SURVEYS OF MAINSTREAM BLACK AMERICANS DEMONSTRATE CONSISTENTLY IF MR CLINTON PERSISTS IN LOOKING LEFT FOR CIVILRIGHTS SOLUTIONS HE'LL KEEP HIS PARTY SHACKLED TO FAILED RACIALLY DIVISIVE POLICIES BUT MORE IMPORTANT HE WILL HAVE MISSED A GOLDEN OPPORTUNITY TO HEAL OUR NATION'S RACIAL WOUNDS MR BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON SEE RELATED LETTER STARK FIGURES OF CAPITAL SENTENCING WSJ FEB 22 1994 SEE RELATED LETTER LETTERS TO THE EDITOR CIVILRIGHTS NOMINEE IS NO RADICAL WSJ MARCH 4 1994 9402020024 9402220062 YY94 MM02 YY94 MM03 9403040085 940114 LEGAL BEAT SOME STATES TRY TAXING DOCTORS TO COVER THE HIGH COST OF HEALTH CARE FOR THE POOR BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL FORTUNATO A WEST VIRGINIA DOCTOR OPENED A NEW OFFICE FIVE MILES ACROSS THE OHIO RIVER LAST SUMMER JUST FAR ENOUGH TO SHIELD PART OF HIS INCOME FROM WEST VIRGINIA'S NEW 2 TAX ON DOCTORS' REVENUES WHILE AN EXTREME REACTION DR FORTUNATO'S MOVE TO OHIO REFLECTS GROWING CONCERN WITHIN THE MEDICAL COMMUNITY ABOUT MANY STATES' NEW RELIANCE ON DOCTORS AND HOSPITALS TO HELP DEFRAY THE COST OF MEDICAL CARE FOR THE POOR WITHIN THE PAST YEAR LAWMAKERS IN MINNESOTA AND KENTUCKY ALSO HAVE IMPLEMENTED 2 REVENUE TAXES WHICH DOCTORS ARE CHALLENGING IN COURT NEBRASKA TENNESSEE MINNESOTA AND WASHINGTON DC HAVE PLACED NEW LICENSING FEES ON PHYSICIANS AND PHYSICIAN TAXES ARE ON THE AGENDA IN ABOUT A DOZEN STATES MEANWHILE ABOUT 25 STATES HAVE PLACED LEVIES ON HOSPITALS TO HELP CARRY THE BURDEN THESE NEW FINANCING EFFORTS SPRING FROM MANY STATES' INCREASING DESPERATION OVER THE COSTS OF THE FEDERAL MEDICAID PROGRAM FOR THE POOR WHICH IS PARTLY FUNDED BY THE STATES THE ASSESSMENTS HAVE RENEWED THE QUESTION OF WHETHER IT IS FAIR TO TAX ONE GROUP OF PEOPLE TO PAY FOR SERVICES THAT BENEFIT SOCIETY SIMILAR TAXES ON LAWYERS THAT HAVE BEEN PROPOSED IN SOME STATES FOR VARIOUS PURPOSES ALSO HAVE AROUSED CONTROVERSY BECAUSE SUCH TAXES OFTEN TARGET HIGHLY PAID AND SOMETIMES UNPOPULAR PROFESSIONS THEY HAVE BECOME POLITICALLY FASHIONABLE IN AN ERA OF PUBLIC HOSTILITY TO BROAD TAX HIKES STATES TYPICALLY JUSTIFY THE PHYSICIAN ASSESSMENT FOR INSTANCE AS A WAY OF REQUIRING DOCTORS TO FULFILL THEIR ETHICAL RESPONSIBILITY TO CARE FOR THE POOR IN ADDITION SOME STATE OFFICIALS POINT OUT BECAUSE THE STATE GIVES DOCTORS A VALUABLE AND EXCLUSIVE LICENSE TO PRACTICE MEDICINE IT HAS A RIGHT TO COLLECT A SMALL TAX FOR THE PUBLIC GOOD BUT THE TAXES HAVE TRIGGERED FIERCE RESISTANCE FROM THE AMERICAN MEDICAL ASSOCIATION AND ITS AFFILIATED STATE ORGANIZATIONS TAXING DOCTORS TO COVER HEALTH CARE FOR THE POOR IS LIKE BUILDING CONTRACTORS HAVING TO BUILD HOMES FOR THE HOMELESS OR LAWYERS HAVING TO PAY TAXES TO FUND THE BUILDING OF PRISON SYSTEMS SAYS ARDIS HOVEN THE PRESIDENT OF THE KENTUCKY MEDICAL ASSOCIATION THIS WAS BASICALLY A SPECIAL PROFESSIONAL TAX THAT WAS BENEFITING ONLY ONE SEGMENT OF SOCIETY THE INDIGENT IN KENTUCKY A GROUP OF PHYSICIANS THE STATE MEDICAL ASSOCIATION AND SOME HEALTHMAINTENANCE ORGANIZATIONS HAVE ARGUED THAT THE STATE'S NEW TAX WHICH ALSO ASSESSES HOSPITALS AND HMOS 25 OF THEIR REVENUES VIOLATES KENTUCKY'S CONSTITUTION IN NOVEMBER A JUDGE AGREED HIS RULING IS UNDER APPEAL THERE IS NO REASONABLE BASIS TO SINGLE OUT THESE HEALTHCARE PROVIDERS TO PAY SPECIAL TAXES TO SUPPORT THE MEDICAID PROGRAM WROTE STATE JUDGE ROGER CRITTENDEN IN HIS RULING THIS PROGRAM BENEFITS THE STATE'S RESIDENTS AS A WHOLE AND THERE ARE NO JUSTIFIABLE REASONS FOR ARBITRARILY DESIGNATING PHYSICIANS TO PAY FOR IT BUT LAST MONTH THE CHIEF JUSTICE OF THE KENTUCKY SUPREME COURT SAID THE STATE COULD CONTINUE COLLECTING THE TAX UNTIL THE APPEAL IS DECIDED STATES HAVE FOUND THEMSELVES SQUEEZED FINANCIALLY FROM SEVERAL DIRECTIONS ABOVE ALL THE PRICE OF MEDICAL CARE HAS SOARED THE FEDERAL GOVERNMENT HAS EXPANDED THE SERVICES COVERED BY MEDICAID AND HAS MADE MORE PEOPLE ELIGIBLE FOR IT AND THE RECESSION HAS DRIVEN MORE PEOPLE ONTO THE PROGRAM'S ROLLS CONGRESS HASN'T INCREASED THE FEDERAL SHARE OF MEDICAID FUNDING IN YEARS LEAVING THE STATES TO PICK UP THE SLACK MEDICAID HAS BECOME THE PACMAN OF STATE GOVERNMENT SAYS RICHARD HEGNER A MEDICAID SPECIALIST AT GEORGE WASHINGTON UNIVERSITY'S INTERGOVERNMENTAL HEALTH POLICY PROJECT PRESIDENT CLINTON'S HEALTH PLAN AS WRITTEN WOULD HELP RELIEVE THE STATES' FINANCIAL CRUNCH BY ELIMINATING MAJOR PARTS OF THE MEDICAID PROGRAM INSTEAD POOR AND UNEMPLOYED PEOPLE WOULD BE POOLED INTO THE SAME GIANT HEALTHCARE ALLIANCES AS THE GENERAL PUBLIC AND THE COST OF THEIR HEALTH COVERAGE WOULD BE PAID MOSTLY BY THE FEDERAL GOVERNMENT MEANWHILE LEGISLATURES THAT TAX PHYSICIANS ARE IN EFFECT ENCOURAGING THEM TO MAINTAIN THEIR INCOME BY REACHING OUT FOR NEW PATIENTS INCLUDING THOSE COVERED BY MEDICAID SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST YOU CAN STILL KEEP YOUR MERCEDES BUT INSTEAD OF GOING HOME AT 5 O'CLOCK YOU GO HOME AT 530 HE SAYS THE OTHER OPTION SAYS DR FORTUNATO OF WEST VIRGINIA IS TO MOVE OUT OF STATE DR FORTUNATO SEES ABOUT 20 OF HIS PATIENTS IN RENTED OFFICE SPACE IN MARTINS FERRY OHIO AND IS CONSIDERING MOVING HIS ENTIRE PRACTICE THERE IF THE TAX RATE IS RAISED ANTICIPATING SUCH A RESPONSE MINNESOTA HAS EXTENDED ITS TAX TO OUTOFSTATE PHYSICIANS WHO TREAT MINNESOTA PATIENTS PHYSICIANS IN NEIGHBORING NORTH DAKOTA SOUTH DAKOTA IOWA AND WISCONSIN HAVE FILED A LAWSUIT LARGELY FUNDED BY THE AMA CHALLENGING THE MINNESOTA BORDERSTATE TAX AS UNCONSTITUTIONAL THE FORMER GREENFIELD & CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS CONTINUES TO BE ROCKED BY DEFECTIONS LAST SUMMER NAME PARTNER RICHARD GREENFIELD LEFT THE HAVERFORD PA FIRM AMID A NEW JERSEY FEDERALCOURT INQUIRY INTO ALLEGATIONS OF ETHICAL IMPROPRIETIES IN A SECURITIES CLASS ACTION THAT HE HANDLED INVOLVING INVESTOR DONALD TRUMP MR GREENFIELD ULTIMATELY ACCEPTED A 5000 FINE AND A ONEYEAR SUSPENSION FROM THE PRACTICE OF LAW IN FEDERAL COURTS THAT STARTED JAN 1 THIS WEEK THE SURVIVING FIRM CHIMICLES BURT & JACOBSEN ANNOUNCED THAT TWO OTHER LAWYERS INCLUDING NAME PARTNER C OLIVER BURT AND PARTNER MICHAEL J PUCILLO WERE LEAVING TO FORM BURT & PUCILLO THE NEW FIRM WILL HAVE OFFICES IN HAVERFORD AND WILL ASSUME CONTROL OF THE FORMER CHIMICLES BURT OFFICE IN WEST PALM BEACH FLA A TOTAL OF FIVE LAWYERS INCLUDING PARTTIME LAWYERS ARE INVOLVED IN THE LATEST MOVE I THINK IT IS JUST A NATURAL EVOLUTION IN THE PRACTICE OF LAW THAT YOUNG LAWYERS WANT TO START THEIR OWN FIRM SAID MR PUCILLO 40 YEARS OLD MR BURT COULDN'T BE REACHED FOR COMMENT MR PUCILLO SAID THAT AMONG THE CASES THAT THE TWO LAWYERS WOULD BE TAKING WITH THEM WERE CLASSACTION SUITS AGAINST AMERIFIRST BANK AND SOUTHEAST BANKING CORP TWO FAILED FLORIDA LENDING INSTITUTIONS NICHOLAS CHIMICLES SAID THE DEPARTURES HAD NOTHING TO DO WITH THE TERMINATION OF GREENFIELD & CHIMICLES AND DIDN'T SUGGEST ANY MAJOR PROBLEMS AT THE FIRM THE FIRM WAS RENAMED CHIMICLES JACOBSEN & TIKELLIS AND MAINTAINS 32 LAWYERS WITH OFFICES IN LOS ANGELES WILMINGTON DEL AND HAVERFORD I FEEL VERY BAD ABOUT IT MR GREENFIELD SAID OF HIS OLD FIRM A BUNCH OF THESE GUYS ARE MY FRIENDS AND IT IS A SHAME THAT IT IS NOT HOLDING TOGETHER HE SAID THE FIRM HAD ABOUT 45 ATTORNEYS JUST BEFORE HE DEPARTED LAST YEAR TWO OLDLINE FLORIDA FIRMS MACFARLANE FERGUSON BASED IN TAMPA AND AUSLEY MCMULLEN MCGEEHEE CAROTHERS & PROCTOR BASED IN TALLAHASSEE ARE JOINING FORCES LITIGATIONORIENTED AUSLEY MCMULLEN WITH 32 LAWYERS IN TALLAHASSEE IS THE OLDEST AND BIGGEST LAW FIRM IN THE STATE CAPITAL ITS CLIENTS INCLUDE SPRINT CORP TECO ENERGY INC AND CSX CORP MACFARLANE FERGUSON IS BEST KNOWN FOR REPRESENTING LYKES BROS INC A CLOSELY HELD COMPANY IN TAMPA WITH VAST INTERESTS IN FLORIDA AGRICULTURE MEAT PACKING SHIPPING AND ENERGY THE MERGER WHICH TAKES EFFECT FEB 1 IS EXPECTED TO BOOST MACFARLANE FERGUSON'S STATEWIDE PRESENCE BEFORE THE PACT THE FIRM HAD ONLY FOUR LAWYERS IN TALLAHASSEE THE COMBINED FIRMS TO BE KNOWN AS MACFARLANE AUSLEY FERGUSON & MCMULLEN WILL HAVE 110 LAWYERS WITH 32 IN TALLAHASSEE 14 IN CLEARWATER AND 64 IN TAMPA RICHARD B SCHMITT AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR DOCTORS BECOME AN EASY TARGET WSJ FEB 11 1994 SEE RELATED LETTER LETTERS TO THE EDITOR I'M ON DOCTORS' SIDE FORGET THAT QUOTE WSJ MARCH 4 1994 9401140090 9402110050 YY94 MM02 YY94 MM03