STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP AB LM ERICSSON SAID ITS SUBSIDIARY IN THAILAND ERICSSON THAI NETWORKS CO WILL FORM A JOINT VENTURE COMPANY WITH TWO LOCAL PARTNERS TO MANUFACTURE AND SELL NETWORK MATERIALS FOR THE THAI TELECOMMUNICATIONS MARKET ERICSSON'S PARTNERS ARE LOXLEY PUBLIC CO AND JASMINE INTERNATIONAL PUBLIC CO ACCORDING TO THE SWEDISH GROUP EACH OF THE PARTNERS WILL HAVE AN EQUAL STAKE IN THE NEW COMPANY CALLED ERICSSON THAI NETWORK PRODUCTS CO PRODUCTION WILL START IMMEDIATELY AT A FACTORY IN RAYONG SOUTHWEST OF BANGKOK 9403030157 940303 CANADA BOND AUCTION THE AVERAGE BID WAS 5537 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9403030156 940303 INTERNATIONAL BRIEF SMITHKLINE BEECHAM PLC DRUG COMPANY IS SELLING SEVEN SMALL BRANDS TO SETON SMITHKLINE BEECHAM PLC SAID IT IS SELLING SEVEN OF ITS SMALL BRANDS TO SETON HEALTHCARE GROUP PLC AND THAT IT IS CLOSING A FACTORY IN ST HELENS IN NORTHWEST ENGLAND THE ST HELENS PLANT WHICH EMPLOYS 480 FULLTIME STAFF WILL CLOSE AT THE END OF THIS YEAR SMITHKLINE A BRITISH MAKER OF PHARMACEUTICAL AND HEALTHCARE PRODUCTS SAID THE SALE OF ITS BRANDS AND THE PLANT CLOSURE REFLECTS ITS INTENTION TO FOCUS ON LARGE BRANDS SMITHKLINE REFUSED TO DISCLOSE THE PROCEEDS OF THE SALE SETON HOWEVER SAID IT PAID 325 MILLION 48 MILLION FOR THE BRANDS IN 1993 THE COMBINED SALES FOR THE SEVEN BRANDS WERE 142 MILLION AND EARNINGS TOTALED 768000 BEFORE MARKETING AND ADMINISTRATIVE COSTS THE BRANDS BEING SOLD INCLUDE DIETARY SUPPLEMENTS PHYLLOSAN AND IRON JELLOIDS ANALGESIC FYNNON CALCIUM ASPIRIN THE LAXATIVE FYNNON SALTS THE RHEUMATIC PREPARATION ELLIMANS EMBROCATION AND YEASTVITE AND DINNEFORDS SYRUP FOR BABIES 9403030155 940303 INTERNATIONAL STUDENTS UNIONS FIGHT FRENCH PLAN TO CUT YOUTH WAGE BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE'S STUDENT AND LABOR UNIONS ARE PLANNING DEMONSTRATIONS ACROSS THE COUNTRY TODAY TO PROTEST THE GOVERNMENT'S PLANS TO BOOST EMPLOYMENT BY EFFECTIVELY CUTTING THE MINIMUM WAGE FOR YOUNG PEOPLE THE RARE ALLIANCE OF DISENCHANTED STUDENTS AND WORKERS HAS RAISED THE SPECTER OF POSSIBLE 1968STYLE RIOTING IN THE STREETS OF PARIS AND COULD POSE A MAJOR THREAT TO THE GOVERNMENT'S ABILITY TO FIGHT UNEMPLOYMENT BY LOOSENING UP THE RIGID LABOR MARKET AT THE SAME TIME AS THE DEMONSTRATORS START TO FILE THROUGH PARIS STREETS THIS AFTERNOON PRIME MINISTER EDOUARD BALLADUR WILL BE MEETING UNION LEADERS AT HIS CENTRAL PARIS OFFICE IN AN ATTEMPT TO CONVINCE THEM THAT FRANCE MUST ACCEPT MAJOR REFORMS IF IT WANTS TO CREATE NEW JOBS ESPECIALLY AMONG YOUTHS ALTHOUGH FRANCE IS SUFFERING RECORD UNEMPLOYMENT WITH MORE THAN 12 OF THE WORK FORCE OUT OF JOBS BOTH THE LABOR UNIONS AND STUDENTS SAY THEY ARE DETERMINED TO PREVENT THE GOVERNMENT FROM TAMPERING WITH THE NATION'S NEARSACROSANCT MINIMUM WAGE KNOWN AS THE SMIC WHICH IS SET AT 5886 FRANCS 1012 A MONTH FOR A 39HOUR WEEK THE GOVERNMENT'S CONTROVERSIAL NEW MEASURES WHICH WERE UNVEILED LAST WEEK WILL ALLOW COMPANIES TO PAY YOUNG RECRUITS ONLY 80 OF THE LEGAL MINIMUM PROVIDED THEY ALSO SUPPLY SOME FORM OF PROFESSIONAL TRAINING LABOR UNIONS FEAR THAT THE MEASURES COULD ENCOURAGE EMPLOYERS TO LAY OFF OLDER MORE EXPENSIVE LABORERS IN FAVOR OF CHEAPER UNTRAINED YOUNGSTERS STUDENT LEADERS SAY THEY THINK THE MEASURES WILL DEVALUE EXISTING DIPLOMAS ALTHOUGH MR BALLADUR INSISTS THAT THIS TIME HE WILL NOT BACK DOWN HE HAS SHOWN REPEATEDLY SINCE COMING TO OFFICE LAST YEAR THAT HE IS WARY OF FANNING THE FLAMES OF SOCIAL UNREST IN FRANCE AND SO TENDS TO ADOPT A CONCILIATORY ATTITUDE WHEN FACED WITH WIDESPREAD PROTESTS HIS FIRST MAJOR RETREAT CAME LATE LAST YEAR WHEN HE WANTED TO APPEASE ANGRY AIRLINE WORKERS THIS WAS FOLLOWED BY HIS WITHDRAWAL OF A CONTROVERSIAL EDUCATIONAL REFORM MOST RECENTLY HE OFFERED A SUBSTANTIAL APPEASEMENT PACKAGE TO DISGRUNTLED FISHERMEN AFTER THEY WENT ON THE RAMPAGE IN A NUMBER OF FRENCH COASTAL TOWNS LAST MONTH 9403030154 940303 CARR REALTY LP BUYS BUILDING WASHINGTON CARR REALTY CORP SAID ITS CARR REALTY LP ACQUIRED A 12STORY OFFICE BUILDING ONE BLOCK WEST OF THE WHITE HOUSE FOR CASH STOCK AND THE ASSUMPTION OF DEBT THE PURCHASE OF THE 140000SQUAREFOOT BUILDING WAS FINANCED BY ISSUING ABOUT 174000 UNITS OF LIMITEDPARTNERSHIP INTEREST IN CARR REALTY VALUED AT ABOUT 4 MILLION THE ASSUMPTION OF ABOUT 134 MILLION OF DEBT AND CASH PAYMENTS OF ABOUT 16 MILLION CARR SAID 9403030153 940303 CHAMPION ENTERPRISES GETS JOB IMLAY CITY MICH CHAMPION ENTERPRISES INC SAID IT RECEIVED CONTRACTS VALUED AT 14 MILLION TO MAKE MIDSIZED BUSES FOR THE MICHIGAN DEPARTMENT OF TRANSPORTATION IN THE NEXT TWO YEARS 9403030152 940303 CHRYSLER SEEKS WAYS TO BOOST VEHICLE OUTPUT BOARD EXPECTED TO DISCUSS CANCELING PLANT CLOSING LIFTING MEXICO CAPACITY BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP WHICH IS RUNNING OUT OF CAPACITY TO MEET DEMAND FOR SOME OF ITS MOST PROFITABLE PRODUCTS IS IN THE MIDST OF TRYING TO FIGURE OUT HOW AND WHERE TO MAKE MORE CARS AND TRUCKS CHRYSLER'S BOARD TODAY IS EXPECTED TO DISCUSS A RANGE OF OPTIONS THAT ARE UNDERSTOOD TO INCLUDE CANCELING A SCHEDULED PLANT CLOSING IN ST LOUIS EXPANDING OUTPUT IN MEXICO AND ADDING WORK SHIFTS AT EXISTING PLANTS THE COMPANY IS ESPECIALLY INTERESTED IN BOOSTING PRODUCTION OF ITS HOTSELLING JEEP GRAND CHEROKEE AND DODGE RAM PICKUP TRUCK WE'VE GOT A LOT OF DIFFERENT STUDIES GOING CHAIRMAN ROBERT J EATON SAID IN AN INTERVIEW THIS WEEK HE DECLINED TO DISCUSS SPECIFIC PLANS BUT INDICATED THAT HE DOESN'T PLAN TO ANNOUNCE ANY DECISIONS THIS WEEK CHRYSLER'S BOARD ALREADY HAS APPROVED A PLAN TO SPEND 1 BILLION TO INCREASE THE COMPANY'S CAPACITY TO 32 MILLION VEHICLES A YEAR BY 1996 FROM 26 MILLION CURRENTLY LAST YEAR CHRYSLER'S VEHICLE SALES SOARED 14 TO 25 MILLION CARS AND TRUCKS ON THE STRENGTH OF A SERIES OF POPULAR NEW PRODUCTS AIDED BY AN AUTOINDUSTRY RECOVERY AS CHRYSLER DECIDES HOW TO SPEND THAT MONEY AND ADDS TO CAPACITY THE RESULTS SHOULD SHOW UP QUICKLY IN THE FORM OF HIGHER PROFITS INDUSTRY ANALYSTS SAY THEY HAVE TO INVEST SOMETHING TO GET ADDED CAPACITY BUT NOT ALL THAT MUCH SAID WENDY NEEDHAM AUTO ANALYST WITH SMITH BARNEY SHEARSON SO THERE IS SIGNIFICANT FLOWTHROUGH TO THE BOTTOM LINE WHILE CHRYSLER ISN'T TALKING PUBLICLY ABOUT ITS PLANS TO ADD CAPACITY ST LOUIS IS A LIKELY CANDIDATE CHRYSLER HAS TWO VEHICLE ASSEMBLY PLANTS THERE BUT ONLY ONE OF THEM IS OPERATING BUILDING MINIVANS CHRYSLER HAD PLANNED TO CLOSE IT DOWN AND SWITCH MINIVAN PRODUCTION TO THE OTHER PLANT WHEN OUTPUT OF ITS NEXTGENERATION MINIVAN COMMENCES EARLY NEXT YEAR THAT WAY THERE WOULDN'T BE A LOSS OF PRODUCTION DURING RETOOLING FOR THE NEW MODEL BUT NOW SUPPLIERS UNION OFFICIALS AND ANALYSTS ALL SAY THEY EXPECT CHRYSLER TO KEEP THE EXISTING PLANT OPEN AFTER THE SECOND PLANT STARTS RUNNING ANOTHER MOVE CHRYSLER IS CONSIDERING IS TO EXPAND PRODUCTION IN MEXICO BUT THAT COULD ANGER US UNION LEADERS AS PART OF MEXICO'S EFFORTS TO DECREASE INDUSTRIAL PRODUCTION IN THE HEAVILYPOLLUTED MEXICO CITY AREA CHRYSLER IS MOVING ITS LAGO ALBERTO PLANT TO A NEW SITE IN NORTHERN MEXICO WHERE IT WILL BUILD AN EXPANDEDCAB VERSION OF THE DODGE RAM PICKUP THANKS TO THE RAM'S POPULARITY CHRYSLER IS NOW CONSIDERING A MODERATE EXPANSION OF MEXICAN PRODUCTION OF THE TRUCK AS WELL AS BUILDING THE TRUCK IN ST LOUIS ANALYSTS AND SUPPLIERS SAY DEALERS HAD A 55DAY SUPPLY OF THE RAM IN JANUARY ACCORDING TO WARD'S AUTOMOTIVE REPORTS COMPARED WITH 75 DAYS FOR FORD PICKUPS AND 60 DAYS FOR CHEVIES WHICH ARE CLOSER TO THE INDUSTRY STANDARD OTHER POSSIBLE EXPANSION MOVES ARE UNDERSTOOD TO INVOLVE A MODERATE EXPANSION OF A PLANT IN DETROIT THAT BUILDS GRAND CHEROKEE SPORTUTILITY VEHICLES ACCORDING TO WARD'S DEALERS HAVE ONLY A 29DAY SUPPLY OF THEM CHRYSLER IS SAID ALSO TO BE CONSIDERATING ADDING A THIRD WORK SHIFT TO BUILD NEON SUBCOMPACTS IN BELVIDERE ILL AND ADDING OUTPUT OF COMPACT CIRRUS AND STRATUS MODELS TO THE NEWARK DEL PLANT CURRENTLY CHRYSLER IS GEARING UP TO BUILD THE VEHICLES ONLY IN STERLING HEIGHTS MICH ONE PROBLEM WITH SUCH IDEAS THOUGH IS THAT CHRYSLER HAS AN ENGINE SHORTAGE TOO AND THE SAME ENGINES ARE USED ACROSS SEVERAL PRODUCT LINES SO IF CHRYSLER SHARPLY INCREASES PRODUCTION OF CIRRUS/STRATUS COMPACTS THAT COULD CUT INTO THE SUPPLY OF FOURCYLINDER ENGINES FOR THE NEON AND THE MINIVAN CHRYSLER IS EXPANDING ITS ENGINE BUILDING CAPACITY AND ALSO TRYING TO MAKE ITS ENGINE PLANTS MORE FLEXIBLE SO DIFFERENT PRODUCTS CAN BE BUILT ON ONE LINE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CHRYSLER ROSE 1 TO 57375 OTHER AUTO STOCKS ALSO ROSE GENERAL MOTORS CORP WAS UP 2375 TO 6050 AFTER AN UPBEAT ANALYSTS MEETING EARLIER IN THE WEEK AT THE COMPANY'S NEW VEHICLE LAUNCH CENTER IN WARREN MICH FORD MOTOR CO ROSE 1625 TO 63875 9403030151 940303 WESTERN CO TENDER OFFER ENDS HOUSTON WESTERN CO OF NORTH AMERICA SAID HOLDERS OF ABOUT 97784000 AGGREGATE PRINCIPAL AMOUNT OF ITS 12 7/8 SENIOR NOTES DUE 2002 ACCEPTED THE COMPANY'S TENDER OFFER THE OIL FIELD SERVICES COMPANY SAID THAT AMOUNT MET THE REQUISITE MINIMUM FOR THE PURCHASE AGREEMENT WESTERN SAID IT OFFERED TO PURCHASE THE SENIOR NOTES AT 1200 FOR EACH 1000 OF PRINCIPAL AMOUNT OUTSTANDING IT SAID 100 MILLION PRINCIPAL AMOUNT IS OUTSTANDING THE OFFER EXPIRED AT MIDNIGHT YESTERDAY 9403030150 940303 MUNIBOND DEALS FROM MID1980S ARE BEING PROBED BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL JACKSONVILLE FLA FEDERAL AUTHORITIES HERE ARE CONDUCTING A CRIMINAL INVESTIGATION RELATED TO 165 MILLION OF MUNICIPAL BONDS SOLD YEARS AGO BY A NEARBY COUNTY AUTHORITY THE INQUIRY INVOLVING BONDS UNDERWRITTEN IN THE MID1980S HAS SPARKED THE INTEREST OF SOME LAWYERS AWARE OF THE INVESTIGATION BECAUSE THEY ASSUMED THAT THE STATUTE OF LIMITATIONS ON ANY SUSPECTED VIOLATIONS HAD EXPIRED LAWYERS FAMILIAR WITH THE MATTER SAID AUTHORITIES HAVE ADVANCED THE THEORY THAT THE STATUTE OF LIMITATIONS RUNS NOT FROM WHEN THE BONDS WERE SOLD BUT FROM WHEN THEY WERE REDEEMED SUCH A THEORY COULD LEAVE A MULTITUDE OF MUNI DEALS OPEN TO SCRUTINY NOW THAT FEDERAL AUTHORITIES HAVE DECIDED TO MORE ACTIVELY ENFORCE LAWS GOVERNING MUNICIPAL BONDS THE BONDS WERE UNDERWRITTEN IN THE MID1980S BY MATTHEWS & WRIGHT GROUP INC WHICH LATER CHANGED ITS NAME TO HELMSTAR GROUP INC THE COMPANY SETTLED FEDERAL FRAUD CHARGES RELATED TO ITS MUNICIPAL BONDUNDERWRITING ACTIVITIES AND ISN'T THE OBJECT OF THE PROBE THE SECURITIES WERE SOLD IN TWO SEPARATE OFFERINGS BY OCEAN HIGHWAY AND PORT AUTHORITY OF NASSAU COUNTY FLA A 100 MILLION ISSUE IN LATE 1985 AND A 65 MILLION ISSUE IN AUGUST OF 1986 BOTH SALES CAME JUST BEFORE IMPORTANT TAXREFORM DEADLINES THAT AFFECTED THE TAX STATUS OF THE BONDS THE SECURITIES AND EXCHANGE COMMISSION CHARGED IN A 1989 LAWSUIT THAT MATTHEWS & WRIGHT UNDERWROTE SEVERAL MUNI DEALS BEFORE THE DEADLINES IN ALLEGEDLY BOGUS CLOSINGS THAT INVOLVED AN IMPECUNIOUS OFFSHORE BANK AMONG THE BONDS ALLEGEDLY SOLD IN THIS MANNER WAS THE 65 MILLION NASSAU COUNTY AUTHORITY ISSUE INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATORS WORKING ON BEHALF OF THE JUSTICE DEPARTMENT ARE MAKING INQUIRIES ABOUT THE BOND DEALS AND LAWYERS FAMILIAR WITH THE MATTER SAID A FEDERAL GRAND JURY HAS BEEN CONVENED HERE FEDERAL INVESTIGATORS WHO DECLINED TO COMMENT ON THE MATTER ARE KNOWN TO BE MAKING INQUIRIES ABOUT LOCAL PARTIES INVOLVED IN THE BOND TRANSACTIONS INCLUDING ATTORNEY ARTHUR JACOBS HE WAS COUNSEL FOR THE AUTHORITY WHEN THE BONDS WERE SOLD AND STILL SERVES IN THAT CAPACITY TOM WILLIAMS THE AUTHORITY'S CHAIRMAN REFERRED QUESTIONS ABOUT THE BOND ISSUES TO MR JACOBS PHONE CALLS TO MR JACOBS SEEKING COMMENT WEREN'T ANSWERED MR WILLIAMS SAID HE KNOWS NOTHING ABOUT ANY FEDERAL INVESTIGATION INVOLVING THE BONDS 9403030149 940303 INTERNATIONAL SOUTH KOREAN TRADE DEFICIT SEOUL SOUTH KOREA REPORTED ITS SECOND STRAIGHT MONTH OF TRADE DEFICITS WITH A 478 MILLION GAP IN FEBRUARY IN A PRELIMINARY REPORT ON TRADE FOR FEBRUARY THE MINISTRY OF TRADE INDUSTRY AND ENERGY BLAMED A LAGGING EXPORT INCREASE FOR THE CONTINUED DEFICIT BUT THE FEBRUARY DEFICIT REPRESENTED A NARROWING FROM THE YEAREARLIER DEFICIT OF 552 MILLION AND JANUARY'S 14 BILLION DEFICIT IN FEBRUARY EXPORTS ROSE 48 TO 622 BILLION FROM 594 BILLION A YEAR EARLIER IMPORTS EXPANDED 33 TO 670 BILLION FROM 649 BILLION THE MINISTRY ATTRIBUTED THE RISE IN EXPORTS AND IMPORTS TO THREE FEWER TRADING DAYS THAN IN THE YEAREARLIER PERIOD 9403030148 940303 ALASKA AIR GROUP INC TRAFFIC SEATTLE ALASKA AIR GROUP INC REPORTED STRONG IMPROVEMENTS IN PASSENGER TRAFFIC FOR ITS ALASKA AIRLINES CARRIER REVENUE PASSENGER MILES ROSE 62 IN FEBRUARY TO 4713 MILLION FROM 2908 MILLION A YEAR EARLIER THE PASSENGER LOAD FACTOR OR PERCENTAGE OF SEATS OCCUPIED BY FAREPAYING PASSENGERS ROSE TO 602 FROM 495 9403030147 940303 CREDIT MARKETS BENCHMARK TREASURY TAKES BACK SOME GROUND IN SESSION MARKED BY WIDE PRICE FLUCTUATIONS BY THOMAS D LAURICELLA AND LAUREN YOUNG STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET TOOK ANOTHER WILD RIDE YESTERDAY BUT UNLIKE RECENT SESSIONS TREASURY SECURITIES RECOVERED FROM EARLY DECLINES AND ENDED WITH SLIGHT PRICE GAINS EARLY IN THE DAY PRICES FLUCTUATED WIDELY AS BUYERS WERE SCARCE THE BENCHMARK 30YEAR BOND FOR EXAMPLE TRADED FROM A LOW OF 92 7/32 TO A HIGH OF 93 14/32 BUT THE PRICE EDGED UP 1/8 POINT BY DAY'S END OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 93 10/32 AS A RESULT THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE FELL TO 677 DOWN FROM TUESDAY'S 678 YIELDS ON OTHER BENCHMARK TREASURYS ALSO FELL SLIGHTLY THE SELLING THAT HAS DRIVEN YIELDS SHARPLY HIGHER IN RECENT WEEKS SIMPLY EXHAUSTED ITSELF TRADERS SAID AND WITH THE MARKET INCREASINGLY ILLIQUID AND WITH IMPORTANT DATA ON THE LABOR MARKET DUE OUT TOMORROW MORNING TRADERS OPTED TO START CLOSING OUT POSITIONS OVERALL SENTIMENT REMAINS BEARISH THE SESSION BEGAN OMINOUSLY WITH PRICES SHARPLY LOWER FOLLOWING HEAVY SELLING OVERSEAS INDEED IN TRADING OVERNIGHT TUESDAY THE 30YEAR BOND CHANGED HANDS AS LOW AS 91 14/32 MUCH OF THE SELLING PRESSURE STEMMED FROM THE BEATING THAT NONUS GOVERNMENT BONDS HAVE TAKEN ESPECIALLY IN THE GERMAN JAPANESE AND BRITISH MARKETS THE SELLOFF IN EUROPEAN BONDS SURPRISED MANY INVESTORS WHO WERE BETTING THAT WEAK EUROPEAN ECONOMIC GROWTH WOULD SPUR CONTINUED DECLINES IN INTEREST RATES THERE BUT THOSE INVESTORS ESPECIALLY HUGE LEVERAGED PLAYERS HAVE BEEN DISAPPOINTED AS THE MARKET WAS AWASH IN RUMORS OF LOSSES AMONG SOME BIG SECURITIES DEALERS SPECULATION CONTINUED THAT HEDGE FUNDS WERE BAILING OUT OF POSITIONS TO RAISE CASH THERE IS A TYPE OF LIQUIDITY CRUNCH GOING ON TO THE EXTENT THAT BANKS ARE RESTRICTING THEIR LINES OF CREDIT TO HEDGE FUNDS FORCING THEM TO LIQUIDATE POSITIONS SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC MARKET PARTICIPANTS SAID MOST OF YESTERDAY'S BUYING WAS FROM PLAYERS REVERSING ARBITRAGE PLAYS OR CLOSING OUT SHORT POSITIONS IN A SHORT SALE A TRADER BETS THAT PRICES WILL FALL BY SELLING BORROWED SECURITIES IN ANTICIPATION OF BUYING THE ISSUES BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE INSTITUTIONAL INVESTORS REMAINED UNWILLING TO BUY DESPITE FALLING PRICES AND HIGHER YIELDS MONEY MANAGERS SAID THEY ARE UNLIKELY TO COMMIT NEW CASH TO THE BOND MARKET UNTIL IT PROVES IT CAN HOLD STEADY FOR AN EXTENDED PERIOD OF TIME TRADERS ARE NOW LOOKING AHEAD TO TOMORROW'S FEBRUARY EMPLOYMENT REPORT FORECASTS CENTER ON A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 150000 THAT WOULD FOLLOW A RISE OF 62000 IN JANUARY A LOT OF DAMAGE HAS BEEN DONE SAID MARCELLO FRUSCTACI A TRADER AT DAIWA SECURITIES INC BUT THE WORST SEEMS TO BE OVER FOR THE TIME BEING AND NOW WE'RE GOING TO WAIT AND SEE HOW THE NUMBERS COME OUT HANGING OVER THE TREASURYS MARKET IS CONTINUED UNCERTAINTY CONCERNING WHEN THE FEDERAL RESERVE WILL AGAIN RAISE INTEREST RATES TRADERS ESSENTIALLY HAVE THROWN DOWN THE GAUNTLET TO THE FED SAYING THAT UNLESS THE FED ACTS SOON TO RAISE RATES INFLATION FEARS WILL SPIRAL AND LONGTERM INTEREST RATES WILL HEAD STILL HIGHER BOND INVESTORS DESPISE INFLATION BECAUSE IT ERODES THE VALUE OF THEIR FIXEDINCOME SECURITIES THEY SEEK HIGHER INTEREST RATES AS A HEDGE AGAINST FUTURE HEIGHTENED INFLATION THE BOND MARKET IS SIGNALING THE NEED FOR ANOTHER FED MOVE SAID MICHELLE COLLEY LAUGHLIN ECONOMIST AT SANWA SECURITIES ON FEB 4 THE FED RAISED THE FEDERAL FUNDS RATE WHICH IS THE RATE AT WHICH BANKS LEND EACH OTHER CASH TO 325 FROM 3 SOME TRADERS SAY THE FED MAY NEED TO RAISE THE FUNDS RATE TO 375 TO QUELL CONCERNS THAT IT'S FALLEN BEHIND IN THE FIGHT AGAINST INFLATION MEANWHILE THE HEDGE FUNDS MIGHT HAVE MORE ON THEIR MINDS THAN THAN JUST INFLATION JITTERS JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO SAYS THOSE FUNDS WOULD HAVE TO PAY A LIQUIDITY PREMIUM TO GET OUT OF POSITIONS IN EUROPEAN MARKETS SO THEY ARE SELLING A MARKET THAT IS MORE EFFICIENT THE US MARKET AS A WAY TO HEDGE THEIR POSITIONS OVERSEAS HE SAID ONTARIO HYDRO A CANADIAN UTILITY BECAME THE FIRST ISSUER TO SELL A CANADIAN DOLLARDENOMINATED FLOATINGRATE GLOBAL NOTE AS IT INCREASES THE AMOUNT OF FLOATINGRATE DEBT IT HAS OUTSTANDING THE UTILITY SOLD ONE BILLION CANADIAN DOLLARS US740 MILLION OF FLOATINGRATE GLOBAL NOTES WHICH ARE GUARANTEED BY THE PROVINCE OF ONTARIO OTHERWISE NEW ISSUE ACTIVITY WAS LIGHT CIT GROUP HOLDINGS JOINTLY OWNED BY DAIICHI KANGYO BANK AND CHEMICAL BANKING CORP SOLD 150 MILLION OF DEBT IN TWO PARTS MEANWHILE THE INDUSTRIAL DEVELOPMENT BANK OF INDIA POSTPONED A 200 MILLION ISSUE CITING MARKET CONDITIONS TRADING IN THE JUNKBOND MARKET WAS ACTIVE WITH PRICES DOWN TWO POINTS EARLY IN THE SESSION OR 20 FOR A BOND WITH A 1000 FACE VALUE HOWEVER PRICES RECOVERED SLIGHTLY AND CLOSED DOWN ONE POINT INVESTORS REPORTEDLY HAVE BEGUN PULLING FUNDS OUT OF HIGHYIELD MUTUAL FUNDS TRADERS SAID AS A RESULT FUND MANAGERS SOLD DEBT TO FUND REDEMPTIONS TRADERS SAID ACTIVITY IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH PRICES FOLLOWING TREASURYS YIELD SPREADS RELATIVE TO TREASURYS WERE FIRM TO 005 PERCENTAGE POINT WIDER TRADERS SAID ONTARIO HYDRO'S GLOBAL OFFERING DESIGNED TO BE EASILY BOUGHT AND SOLD IN THE WORLD'S MAJOR MARKETS WAS PRICED AT 9964 THE COUPON WILL FLOAT 008 PERCENTAGE POINT ABOVE THREEMONTH CANADIAN BANKER'S ACCEPTANCES A BENCHMARK SHORTTERM RATE THAT STOOD AT 415 AT PRICING THE COUPON RESETS EVERY THREE MONTHS JOHN MULLIGAN ONTARIO HYDRO'S ACTING TREASURER SAID THE UTILITY LAUNCHED THE ISSUE DESPITE WEAK MARKET CONDITIONS BECAUSE FLOATINGRATE NOTES MEET INVESTORS' NEEDS WHEN INTEREST RATES ARE BACKING UP ON THEM THE ISSUE WAS NEARLY 75 SOLD YESTERDAY AND SHOULD BE FULLY SOLD IN THE NEXT FEW DAYS HE SAID PROCEEDS WILL BE USED TO FUND DEBT MATURING THIS YEAR THE DEAL WAS MANAGED BY MERRILL LYNCH & CO AND WOOD GUNDY CORP ONTARIO HYDRO PLANS TO TAKE ADVANTAGE OF SHORTTERM INTEREST RATES AND SELL MORE FLOATINGRATE DEBT THIS YEAR MR MULLIGAN SAID ABOUT 9 OF THE UTILITY'S C35 BILLION OUTSTANDING DEBT IS FLOATING SYNDICATE OFFICIALS SAID ABOUT 50 OF THE ISSUE SO FAR SOLD WENT TO EUROPEAN ACCOUNTS WHICH ARE MORE FAMILIAR WITH FLOATINGRATE SECURITIES NORTH AMERICAN AND ASIAN INVESTORS BOUGHT THE REMAINDER CANADIAN INTEREST WAS STRONG THE ISSUE MAY FACE A ROUGH RIDE IN THE US YOU HAVE TO BE BULLISH ON THE CANADIAN DOLLAR TO BUY INTO THIS THING SAID ONE CANADIAN ECONOMIST HE SAID MANY FOREIGN INVESTORS FEAR THAT THE CANADIAN DOLLAR WILL FALL ONTARIO HYDRO'S DEBT IS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP SELLERS ATTACKED MUNICIPAL BONDS ONCE AGAIN YESTERDAY BUT THEY SEEM TO BE HAVING A LITTLE SYMPATHY TOWARD DENVER'S POPULAR AIRPORT REVENUE BONDS DESPITE YET ANOTHER DELAY IN THE OPENING OF THE CITY'S NEW INTERNATIONAL AIRPORT THE LOSSES OF THE DENVER BONDS THIS WEEK ARE LARGELY ATTRIBUTED TO THE GENERAL MARKET MALAISE NOT TO THE POSTPONEMENT DENVER OFFICIALS ANNOUNCED EARLIER THIS WEEK THAT THE AIRPORT OPENING HAS BEEN PUT OFF UNTIL MAY 15 THE DELAY WILL GENERATE BONDRELATED POSTPONEMENT COSTS OF AN ESTIMATED 30 MILLION THAT ARE TO BE COVERED BY UAL CORP'S UNITED AIRLINES AND CONTINENTAL AIRLINES THE YIELD FOR THE 675 OF 2022 AIRPORT REVENUE BONDS ONE CLOSELY WATCHED ISSUE HAS RISEN TO ABOUT 665 FROM 65 LATE TUESDAY THERE IS 35 BILLION OF DENVER AIRPORT REVENUE BONDS OUTSTANDING SEPARATELY MORE THAN 400 MILLION OF MUNIS WERE PRICED THE SESSION DESPITE THE MARKET'S CONTINUED WEAKNESS A SMITH BARNEY SHEARSON GROUP SET YIELDS FOR THE WESTCHESTER COUNTY NY INDUSTRIAL DEVELOPMENT AGENCY 113 MILLION 1994 SERIES A REFUNDING BONDS FOLLOWING A REPRICING TO ATTRACT BUYERS YIELDS RANGE FROM 445 IN 1998 TO 575 IN 2009 THOUGH FARING BETTER THAN TREASURYS AS BOTH MARKETS FELL IN EARLY TRADING MORTGAGE PRICES IN LATE TRADING SLIGHTLY TRAILED THEIR GOVERNMENT COUNTERPARTS AS THE US MARKETS OPENED TREASURYS WERE POSTING LOSSES FROM OVERSEAS TRADE AND MORTGAGES WERE ONLY MIRRORING ABOUT THREEQUARTERS OF THOSE LOSSES BUT AS THE SESSION WORE ON TREASURYS CAUGHT OCCASIONAL BID FROM SHORTCOVERING AND FROM INVESTORS MOVING OUT OF STOCKS MORTGAGES FELL BEHIND AND NEVER CAUGHT UP BUT THERE'S A BRIGHT SPOT TRADERS SAY IT ALLOWED UNDERWRITERS TO PRICE NEW REALESTATE INVESTMENTCONDUIT SECURITIES WHEN MORTGAGES CHEAPEN OR WIDEN RELATIVE TO TREASURYS THE REMIC UNDERWRITING PROFIT MARGIN WIDENS ALL FOUR OF THE DEALS ANNOUNCED YESTERDAY WERE BACKED BY SECURITIES FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION COLLATERAL INCLUDED 6 1/2 7 AND 7 1/2 SECURITIES AS WELL AS PRINCIPLEONLY STRIPS FROM OUTSTANDING REMIC TRUSTS ALL TOLD 905 MILLION IN NEW BONDS CAME OUT IN LATE TRADING THE 7 SECURITIES FOR MARCH DELIVERY WERE OFF 2/32 GINNIE MAES WERE AT 99 17/32 FREDDIE MAC GOLDS AT 99 24/32 AND FANNIE MAES AT 99 18/32 THE 10YEAR TREASURY NOTE WHICH IS A BENCHMARK FOR THESE MORTGAGE ISSUES WAS UP 1/8 POINT AT 97 6/32 TO YIELD 625 IN THE ASSETBACKED MARKET LEHMAN BROTHERS INC BROUGHT AN UNUSUAL OFFERING OF SECURITIES BACKED BY SUBORDINATE CERTIFICATES OF THREE PREVIOUSLY ISSUED HOUSEHOLD FINANCE CORP HOMEEQUITYLOAN TRANSACTIONS HOUSEHOLD FINANCE IS A UNIT OF HOUSEHOLD INTERNATIONAL INC IT WAS CHANGES TO THE INVESTMENT COMPANY ACT OF 1940 AUTHORIZED BY THE SECURITIES AND EXCHANGE COMMISSION IN LATE 1992 THAT ENABLED LEHMAN TO REPACKAGE THE LOWERRATED SECURITIES OUTSTANDING FOR TRIPLEA RATED BONDS SAYS MARTIN HARDING A LEHMAN SENIOR VICE PRESIDENT MR HARDING SAYS THE NEW STRUCTURE ENABLED THE BANK TO PROVIDE INVESTORS WITH FLOATINGRATE PAPER WHICH HAS BEEN HIGHLY DESIRED AS A DEFENSIVE MOVE AGAINST RISING RATES 9403030145 940303 MEASUREX CORP'S SALES DECLINE CUPERTINO CALIF MEASUREX CORP SAID SOFTNESS IN ASIAN AND SOUTH AMERICAN MARKETS CAUSED ORDERS IN THE FIRST QUARTER ENDED FEB 27 TO DECLINE 9 TO 31 MILLION FROM 34 MILLION A YEAR AGO DESPITE THE SALES DECLINE THE MAKER OF COMPUTERIZED MANUFACTURING CONTROLS SAID IT EXPECTS PROFIT TO BE SOMEWHAT HIGHER THAN THE YEARAGO PERIOD'S 10 CENTS A SHARE 9403030144 940303 INTERNATIONAL HOSOKAWA ENDS PLAN TO SHUFFLE CABINET POSTS MOVE REFLECTS THE FRAILTY OF RULING COALITION COMES AMID INFIGHTING BY CRAIG FORMAN AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO PRIME MINISTER MORIHIRO HOSOKAWA BACKED AWAY FROM PLANS TO SHUFFLE HIS CABINET AN EMBARRASSING TURNABOUT THAT REFLECTS THE FRAGILITY OF HIS RULING COALITION IN A LATENIGHT NEWS CONFERENCE MR HOSOKAWA INDICATED HE REGRETTED THE REVERSAL WHICH FOLLOWED SEVERAL DAYS OF INTERNAL DISCORD THAT HAD THREATENED HIS SEVENPARTY GOVERNMENT BUT AFTER FAILING TO QUELL THE COALITION INFIGHTING MR HOSOKAWA SAID HE HAS GIVEN UP ANY PLANS FOR A SHUFFLE AT THE MOMENT PREFERRING INSTEAD TO TRY TO UNITE MORE STRONGLY THE TEAM HE ALREADY LEADS THE DECISION COMING AFTER SEVERAL RECENT PROBLEMS ADDS TO QUESTIONS ABOUT MR HOSOKAWA'S LEADERSHIP AND THE VIABILITY OF JAPAN'S EXPERIMENT WITH MULTIPARTY COALITION GOVERNMENT IT ALSO RAISES THE PROSPECT OF FURTHER DELAY TO JAPAN'S EFFORTS TO HEAD OFF A TRADE CLASH WITH THE US IN HIS SEVEN MONTHS IN OFFICE MR HOSOKAWA FREQUENTLY HAS FACED OPPOSITION FROM WITHIN HIS OWN CABINET OVER POLICIES RANGING FROM POLITICAL AND TAX REFORM TO OPENING THE JAPANESE MARKET TO RICE IMPORTS EARLIER THIS YEAR MR HOSOKAWA HAD TO BACK DOWN FROM PLANS FOR AGGRESSIVE TAX CHANGES AFTER HIS ANNOUNCEMENT PROMPTED THREATS FROM SEVERAL COALITION MEMBERS TO WITHDRAW FROM THE GOVERNMENT ONE OF THE REASONS MR HOSOKAWA WAS PUSHING FOR A SHUFFLE WAS TO OVERCOME THE BICKERING AND TO STRENGTHEN HIS CABINET TEAM PARTICULARLY TO FACE ECONOMIC ISSUES BUT IN THE END HE WAS UNABLE TO SECURE SUPPORT FROM SEVERAL KEY COALITION PARTIES INCLUDING THE SOCIALISTS AMONG THE LARGEST VOTING BLOCS ONE OF THE KEY TARGETS OF THE PLANNED SHUFFLE WAS MASAYOSHI TAKEMURA CHIEF CABINET SECRETARY AND TOP GOVERNMENT SPOKESMAN IN RECENT TIMES MR HOSOKAWA AND MR TAKEMURA FORMERLY A CLOSE COLLEAGUE HAVE CLASHED OVER TAX ISSUES AND OPENING THE RICE MARKET IN CONTRAST MORECONSERVATIVE COALITION LEADERS LED BY LONGTIME PARLIAMENTARY POWER BROKER ICHIRO OZAWA HAD PUSHED MR HOSOKAWA TO PUT GREATER EMPHASIS ON ECONOMICS AND TRADE THE DECISION TO ABANDON PLANS FOR A SHUFFLE LEAVES MR HOSOKAWA SADDLED WITH HIS RECALCITRANT CABINET AT A TIME WHEN HE NEEDS TO CONFRONT SUCH TOUGH ISSUES AS THE LOOMING TRADE CLASH WITH THE US THE IRONY IS THAT MR HOSOKAWA CAME TO OFFICE LAST SUMMER PROMISING A NEW STYLE OF POLITICS THAT WOULD END THE SIMILAR FACTIONAL INFIGHTING OF THE SCANDALTAINTED LIBERAL DEMOCRATIC PARTY THAT HAD RULED FOR 38 YEARS THE TURMOIL HAS HURT THE COALITION'S STANDINGS IN THE POLLS ALTHOUGH MR HOSOKAWA AND HIS GOVERNMENT STILL REMAIN MORE POPULAR THAN RECENT LDP GOVERNMENTS TWO NEWSPAPER POLLS THIS WEEK SHOWED APPROVAL RATINGS HAVE FALLEN BELOW 60 FOR THE FIRST TIME THE YOMIURI JAPAN'S LARGEST NEWSPAPER SAID SUPPORT FELL 144 PERCENTAGE POINTS TO 58 LAST MONTH AN ASAHI NEWSPAPER POLL SAID SUPPORT IS DOWN TO 57 FROM 60 IN A PREVIOUS SURVEY 9403030143 940303 WHO'S NEWS FIRSTMISS GOLD INC FIRSTMISS GOLD INC RENO NEV PETE INGERSOLL AN INVESTMENT BANKER BASED IN TELLURIDE COLO WAS ELECTED A DIRECTOR OF THIS MINING COMPANY THE ELECTION OF MR INGERSOLL A PRINCIPAL PARTNER OF THE FIRM OF INGERSOLL PARKER & LONGABAUGH INCREASES THE BOARD TO 10 MEMBERS 9403030142 940303 WHO'S NEWS INTERREGIONAL FINANCIAL GROUP INTERREGIONAL FINANCIAL GROUP MINNEAPOLIS J SCOTT SPIKER 38 YEARS OLD FORMERLY A SENIOR VICE PRESIDENT AT NORWEST BANK MINNEAPOLIS WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF STRATEGIC PLANNING AND CORPORATE DEVELOPMENT A NEW POSITION AT THIS REGIONAL BROKERAGE AND INVESTMENT BANKING CONCERN 9403030141 940303 WHO'S NEWS DANIEL INDUSTRIES INC DANIEL INDUSTRIES INC HOUSTON BRIAN E O'NEILL 58 YEARS OLD WAS NAMED A DIRECTOR OF THIS FLUID MEASUREMENT PRODUCTS COMPANY SUCCEEDING JOSEPH L PARRISH 74 WHO RESIGNED MR O'NEILL IS PRESIDENT OF NORTHWEST ALASKAN PIPELINE CO NORTHWEST BORDER PIPELINE CO NORTHWEST PIPELINE CORP WILLIAMS NATURAL GAS CO AND WILLIAMS WESTERN PIPELINE CO 9403030140 940303 WHO'S NEWS PINNACLE MICRO INC PINNACLE MICRO INC IRVINE CALIF JAMES T SCHRAITH WAS ELECTED A DIRECTOR OF THIS MAKER OF OPTICAL STORAGE SYSTEMS SUCCEEDING CHARLES W RICHION 56 YEARS OLD WHO RESIGNED DUE TO PERSONAL AND PROFESSIONAL COMMITMENTS MR SCHRAITH 36 IS SENIOR VICE PRESIDENT OF SALES AND SERVICE WITH AST RESEARCH INC 9403030139 940303 HOME INSURANCE CO AGREEMENT NEW YORK HOME INSURANCE CO A UNIT OF HOME HOLDINGS INC SAID IT HAS A RECIPROCAL SERVICE AGREEMENT WITH VIETNAM INSURANCE CO OF HANOI HOME INSURANCE SAID THE AGREEMENT ALLOWS IT TO OFFER FULLSERVICE INSURANCE COVERAGE FOR VIETNAMESE ACCOUNTS IN THE US AND CANADA AND ALLOWS THE VIETNAMESE COMPANY TO WRITE AND SERVICE US ACCOUNTS IN VIETNAM 9403030138 940303 WHO'S NEWS OLD KENT FINANCIAL CORP OLD KENT FINANCIAL CORP GRAND RAPIDS MICH DAVID J WAGNER 39 YEARS OLD HAS BEEN NAMED TO SUCCEED JOHN C CANEPA AS PRESIDENT OF THIS BANK HOLDING COMPANY MR WAGNER WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BANK'S OLD KENT BANK & TRUST CO SUBSIDIARY OLD KENT ALSO SAID MR WAGNER WILL BECOME CHIEF EXECUTIVE OFFICER NEXT MARCH WHEN MR CANEPA 63 WILL STEP DOWN AS CHIEF EXECUTIVE MR CANEPA WILL REMAIN CHAIRMAN UNTIL HIS RETIREMENT IN 1997 9403030137 940303 PIONEER STANDARD ELECTRONICS CLEVELAND PIONEER STANDARD ELECTRONICS INC SAID IT EXECUTED A LETTER OF INTENT TO ACQUIRE CERTAIN ASSETS AND LIABILITIES OF UNITED WESTBURNE INC'S ZENTRONICS UNIT FOR ABOUT 18 MILLION TO 20 MILLION ZENTRONICS THE CANADIAN ELECTRONICS DISTRIBUTION DIVISION OF UNITED WESTBURNE MONTREAL HAS MORE THAN 70 MILLION CANADIAN DOLLARS US518 MILLION IN ANNUAL SALES PIONEERSTANDARD AN ELECTRONICS DISTRIBUTOR EXPECTS THE TRANSACTION TO CLOSE IN JUNE 9403030136 940303 RUSSIA AGREES TO MAKE CUTS IN ALUMINUM PRODUCTION OTTAWA RUSSIA ASSURED OTHER MAJOR ALUMINUMPRODUCING NATIONS THAT IT WILL IMPLEMENT PLANNED PRODUCTION CUTS TO HELP REDUCE THE WORLD ALUMINUM GLUT THE ASSURANCE WAS DISCLOSED YESTERDAY AT THE CONCLUSION OF A TWODAY MEETING OF OFFICIALS FROM MAJOR ALUMINUM PRODUCING NATIONS INCLUDING THE US RUSSIA CANADA AUSTRALIA NORWAY AND THE EUROPEAN UNION RUSSIA AT A PREVIOUS MEETING IN BRUSSELS IN LATE JANUARY AGREED TO CUT OUTPUT BY 300000 METRIC TONS IMMEDIATELY AND BY AN ADDITIONAL 200000 TONS AFTER SIMILAR CUTBACKS BY WESTERN PRODUCERS SOME INDUSTRY OBSERVERS HAD EXPRESSED DOUBTS ABOUT RUSSIA'S ABILITY TO FORCE ITS SMELTERS TO IMPLEMENT THE PROPOSED CUTS BUT THE RUSSIAN DELEGATION IN OTTAWA SAID MOSCOW HAS AT ITS DISPOSAL THE NECESSARY LEGAL MEANS TO ENSURE THAT THE NECESSARY PRODUCTION CUTS ARE MADE CANADIAN OFFICIALS TOLD REPORTERS THAT SINCE NOVEMBER MAJOR ALUMINUM PRODUCERS INCLUDING RUSSIA HAD CUT OUTPUT BY ONE MILLION TONS RUSSIA HAD REDUCED PRODUCTION BY 120000 TONS AND ANNOUNCED ITS INTENTIONS TO CUT AN ADDITIONAL 37000 TONS IN THE VERY NEAR FUTURE OFFICIALS SAID WESTERN PRODUCERS HAD ANNOUNCED CUTS OF 850000 TONS THERE HAS BEEN A VERY SUBSTANTIAL NUMBER OF CUTS SAID ONE OFFICIAL WE ARE NOT ANTICIPATING A MAJOR PROBLEM IN REACHING THE GOALS THAT HAVE BEEN SET OUT IN THE BRUSSELS AGREEMENT HE SAID THE ACCORD IS AIMED AT REDUCING GLOBAL PRODUCTION BY UP TO TWO MILLION TONS OVER TWO YEARS 9403030135 940303 DIGITAL SOUND WINS CONTRACT CARPINTERIA CALIF DIGITAL SOUND CORP GOT A ONEYEAR FOLLOWON CONTRACT FOR EQUIPMENT AND SERVICES FROM PACIFIC TELESIS GROUP'S PACIFIC BELL INFORMATION SERVICES UNIT THE COMPANY SAID PACIFIC BELL INFORMATION ORDERED MORE THAN 57 MILLION IN EQUIPMENT UPGRADES FOR ITS PACIFIC BELL VOICE MAIL AND PACIFIC BELL CALL MANAGEMENT SERVICES SHIPMENTS WILL BEGIN IN THE FIRST QUARTER THE COMPANY SAID 9403030134 940303 INTERNATIONAL US DELEGATIONS SEND MIXED SIGNALS TO CHINA OVER RENEWAL OF TRADE STATUS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING TWO HIGHLEVEL US DELEGATIONS IN BEIJING REFLECT THE SPLIT IN WASHINGTON OVER RENEWAL OF MOST FAVORED NATION TRADING STATUS FOR CHINA UNDERSECRETARY OF COMMERCE JEFFREY GARTEN SPENT THE PAST THREE DAYS PROMOTING US EXPORTS AND BACKING US COMPANIES' BIDS FOR CHINESE PROJECTS WORTH 6 BILLION THERE ARE HUGE STAKES FOR THE UNITED STATES HERE AND WE'RE LOOKING VERY MUCH TO DEEPEN THEM IN THE LONG TERM HE TOLD REPORTERS WEDNESDAY OVER THE SAME DAYS JOHN SHATTUCK US UNDERSECRETARY OF STATE MET WITH CHINESE OFFICIALS TO DEMAND THAT CHINA MEET CERTAIN HUMAN RIGHTS CONDITIONS OR FACE THE REVOCATION OF ITS MFN STATUS FURTHER PROGRESS IS NEEDED IF MFN IS TO BE RENEWED IN JUNE IT'S NOW UP TO THE CHINESE GOVERNMENT TO MOVE IN THAT DIRECTION HE SAID AT A NEWS CONFERENCE A FEW HOURS AFTER MR GARTEN'S SUCH MIXED SIGNALS UNDERSCORE THE CLINTON ADMINISTRATION'S QUANDARY OVER CHINA POLICY US COMPANIES ARE EAGER TO PILE INTO CHINA AS ITS ECONOMY STEAMS AHEAD AT DOUBLEDIGIT SPEED BUT PRESIDENT CLINTON SAID LAST YEAR THAT MFN WHICH ENTITLES A NATION TO THE LOWEST TARIFFS CHARGED ON IMPORTS TO THE US WILL ONLY BE RENEWED IF CHINA IMPROVES ITS HUMAN RIGHTS RECORD NOW THERE ARE INCREASING SIGNS THAT WASHINGTON WOULD CONSIDER EXTENDING MFN TO CHINA ON A MULTIYEAR BASIS OR EVEN PERMANENTLY IF IT WERE TO PASS THE ANNUAL WASHINGTON REVIEW THIS JUNE BY SHOWING DRAMATIC PROGRESS SOME BELIEVE THE US WOULD LIKE TO UNCOUPLE THE ISSUES OF TRADE AND HUMAN RIGHTS IF CHINA GAVE MR CLINTON A GOOD EXCUSE TO DO SO ONE PROBLEM SEEMS TO BE THAT CHINA HASN'T KNOWN EXACTLY WHAT IT IS THAT THE US WANTS ONE US EXECUTIVE WITH GOOD ACCESS TO CHINESE OFFICIALS SAYS BEIJING HAS A REAL INTEREST IN MEETING US DEMANDS BUT IT NEEDS WASHINGTON TO GIVE A CONCRETE IDEA OF WHAT IT WANTS CHINA DOESN'T WANT TO STICK ITS NECK OUT IF THE US THEN SAYS NO WE WANT MORE MR SHATTUCK HAS ADDRESSED THIS PROBLEM DURING HIS VISIT HE DISCUSSED WITH CHINESE OFFICIALS IN DETAIL THE MFN EXECUTIVE ORDER ISSUED BY MR CLINTON IN JUNE THE ORDER SETS TWO MANDATORY CONDITIONS AND FIVE AREAS IN WHICH CHINA MUST MAKE OVERALL SIGNIFICANT PROGRESS TO GAIN AN MFN EXTENSION THIS YEAR THESE INCLUDE ENDING PRISON LABOR EXPORTS TO THE US AND RELEASING AND ACCOUNTING FOR POLITICAL PRISONERS FIFTYFOUR SENATORS REPORTEDLY HAVE SIGNED A LETTER ADDRESSED TO CHINESE COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN AND DELIVERED BY MR SHATTUCK ASKING CHINA TO GRANT MEDICAL PAROLE TO FIVE PROMINENT DISSIDENTS JAILED AFTER THE 1989 DEMOCRACY PROTESTS IT SAYS SUCH AN ACTION WOULD CONSTITUTE A SIGNIFICANT GESTURE CHINA HAS ALREADY TAKEN SOME STEPS IT RELEASED THREE POLITICAL PRISONERS LAST MONTH AND AGREED TO ALLOW THE US TO INSPECT FIVE PRISONS ALLEGED TO BE PRODUCING GOODS FOR EXPORT BUT IT HAS ALSO RECENTLY LAUNCHED A CRACKDOWN ON RELIGION AND CULTURE AND ARRESTED OTHER DISSIDENTS IT IS UNCLEAR WHAT FURTHER ACTIONS IF ANY CHINA MIGHT BE CONSIDERING NEITHER SIDE HAS BEEN WILLING TO COMMENT ON SPECIFICS ALTHOUGH A SENIOR CHINESE FOREIGN MINISTRY OFFICIAL TOLD REPORTERS MONDAY THAT CHINA IS WILLING TO DO WHAT WE CAN WITHIN THE LAW WHAT WE CAN'T DO WE'LL TELL THE US CLEARLY MR SHATTUCK STRUCK AN OPTIMISTIC NOTE AT HIS NEWS CONFERENCE THE DISCUSSIONS HAVE BECOME MORE BUSINESSLIKE AND INTENSE HE SAID I THINK THERE'S A MORE POSITIVE ATMOSPHERE HE ADDED THAT WASHINGTON AND BEIJING HAVE HELD DETAILED TALKS ON THE STATUS OF 235 POLITICAL PRISONERS SUBMITTED IN A LIST BY THE US LAST YEAR AND VERY POSITIVE AND CONSTRUCTIVE DISCUSSIONS ON THE POSSIBILITY OF RELEASING SOME ON MEDICAL PAROLE EVER SINCE MR CLINTON MET MR JIANG IN SEATTLE IN NOVEMBER BOTH SIDES HAVE APPEARED MORE EAGER TO COMPROMISE SHELVING THE MFN ISSUE WOULD BE GOOD FOR BUSINESS FOR BOTH SIDES TWOWAY TRADE HAS SURGED FROM 23 BILLION IN 1979 TO MORE THAN 40 BILLION LAST YEAR AND THE US IS NOW CHINA'S LARGEST EXPORT MARKET THE IMMEDIATE STAKES ARE SOME 6 BILLION OF CHINESE CONTRACTS FOR WHICH US TELECOMMUNICATIONS TRANSPORT AND POWER COMPANIES ARE BIDDING ONE PURPOSE OF MR GARTEN'S TRIP WAS TO LOBBY ON BEHALF OF THESE COMPANIES AND THAT'S JUST A DROP IN THE BUCKET WE'RE TALKING HUNDREDS OF BILLIONS OF DOLLARS IN INFRASTRUCTURE PROJECTS HE SAID 9403030133 940303 TECHNOLOGY CHIRON POSTS PROFIT FOR FOURTH QUARTER AFTER A LOSS IN 1992 EMERYVILLE CALIF BUOYED BY SALES OF ITS VISION PRODUCTS AND MULTIPLESCLEROSIS DRUG CHIRON CORP POSTED MODEST PROFITS FOR THE 1993 FOURTH QUARTER AND FULL YEAR AFTER YEAREARLIER LOSSES IN THE FOURTH QUARTER CHIRON REPORTED PROFIT OF 55 MILLION OR 16 CENTS A SHARE COMPARED WITH A YEARAGO NET LOSS OF 469 MILLION OR 150 A SHARE REVENUE SURGED 57 TO 933 MILLION FROM 594 MILLION A YEAR EARLIER PACING CHIRON'S STRONG PERFORMANCE WERE THE FIRST SUBSTANTIAL SALES OF ITS DRUG BETASERON FOR MULTIPLE SCLEROSIS CHIRON MANUFACTURES THE DRUG FOR ITS MARKETING PARTNER BERLEX LABORATORIES A UNIT OF GERMANY'S SCHERING AG BETASERON APPROVED FOR THE US MARKET IN EARLY DECEMBER GARNERED CHIRON 105 MILLION FROM VOLUME SHIPMENTS TO BERLEX IN THE FOURTH QUARTER UP FROM 13 MILLION FROM PILOT SHIPMENTS TO BERLEX IN THE THIRD QUARTER HOWEVER BETASERON REMAINS TIGHTLY RATIONED AVAILABLE TO ABOUT 20000 PATIENTS OR ROUGHLY A FIFTH OF POTENTIAL USERS DUE TO LIMITED MANUFACTURING CAPACITY CHIRON IS RACING TO EXPAND PRODUCTION AT ITS PLANT IN EMERYVILLE AND AT A NEW FACILITY IN PUERTO RICO IN ORDER TO MEET ITS GOAL OF SUPPLYING AS MANY AS 40000 PATIENTS BY THE END OF 1994 AND 100000 OR MORE PATIENTS BY THE END OF 1995 CHIRON'S SHARE OF PROFITS FROM ITS JOINT BUSINESS WITH ORTHO DIAGNOSTIC SYSTEMS ROSE BUT SALES OF ITS CANCER DRUG INTERLEUKIN2 SUBSIDED IN THE FOURTH QUARTER AFTER THREE QUARTERS OF INCREASING SALES CHIRON'S BURSTING PIPELINE OF NEW PRODUCTS IN DEVELOPMENT LED TO INCREASED EXPENDITURES ON CLINICAL TRIALS FOR VACCINES FOR GENITAL HERPES HIV AND FLU AS WELL AS ON DEVELOPMENT OF DNA PROBES FOR VIRAL DISEASES CAPITAL SPENDING IN 1994 IS EXPECTED TO MATCH THE 1993 OUTLAY OF 115 MILLION AS PLANT EXPANSIONS CONTINUE CHIRON'S RESULTS FELL WITHIN ANALYSTS' GENERAL EXPECTATION FOR THE COMPANY'S TURNAROUND YEAR THE REPORT WAS RELEASED AFTER THE CLOSE OF THE TRADING DAY WHICH SAW CHIRON'S HIGHFLYING STOCK CLOSE UP 25 CENTS OR 03 AT 73625 A SHARE ON THE NASDAQ STOCK MARKET 9403030132 940303 ALDEN ELECTRONICS CONTRACT WESTBOROUGH MASS ALDEN ELECTRONICS INC SAID IT RECEIVED A MULTIYEAR CONTRACT TO DISTRIBUTE WEATHER DATA THROUGH THE INTERNET COMPUTER NETWORK TO MORE THAN 125 US COLLEGES AND UNIVERSITIES THE CONTRACT WAS AWARDED BY THE UNIVERSITY CORP FOR ATMOSPHERIC RESEARCH A GROUP OF 61 MEMBER UNIVERSITIES FINANCIAL TERMS WEREN'T DISCLOSED ALDEN SAID ELEMENTARY AND HIGH SCHOOLS IN COOPERATION WITH UNIVERSITY CORP MAY ALSO BE ABLE TO RECEIVE THE DATA 9403030131 940303 LAW RESOLUTION TRUST WINS RENTCONTROL CASE IN NEW YORK BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RESOLUTION TRUST CORP IS ONE LANDLORD THAT NEEDN'T WORRY ABOUT RENT CONTROL THE FEDERAL APPEALS COURT IN NEW YORK RULED THAT THE RTC DOESN'T HAVE TO OBEY LOCAL RENTCONTROL REGULATIONS FOR PROPERTIES IT INTENDS TO SELL IN ITS ROLE AS CONSERVATOR OR RECEIVER FOR INSOLVENT SAVINGSANDLOANS IN KEEPING WITH A NUMBER OF DECISIONS THAT HAVE AFFIRMED THE BROAD POWERS OF THE THRIFTBAILOUT AGENCY THE APPEALS COURT SAID CONGRESS SPECIFICALLY AUTHORIZED THE RTC TO RECOVER THE MAXIMUM IT CAN IN SELLING THE ASSETS OF FAILED THRIFTS THE RENTCONTROL CASE INVOLVES NINE RENTAL APARTMENTS IN A MANHATTAN CONDOMINIUM BUILDING ON EAST 57TH STREET THAT HAD BEEN OWNED BY A FAILED SAVINGSANDLOAN THE NINE RENTERS CHALLENGED THE RTC'S ATTEMPT TO TERMINATE THEIR TENANCIES AND FORCE THEM TO PURCHASE THE UNITS OR MOVE A LOWER COURT RULED THAT THE RTC MUST COMPLY WITH NEW YORK CITY'S RENTCONTROL REGULATIONS WHICH ENTITLED THE TENANTS TO REMAIN BUT A THREEJUDGE PANEL OF THE SECOND US CIRCUIT COURT OF APPEALS REVERSED THE TRIAL JUDGE FINDING THAT THE RENTCONTROL REGULATIONS WERE PREEMPTED BY THE LEGISLATION CREATING THE RTC RTC SPOKESWOMAN ANNE FREEMAN SAID THE RENTCONTROL ISSUE IS SIGNIFICANT FOR THE AGENCY AND ALSO HAS ARISEN IN BOSTON NEWPORT BEACH CALIF AND CONNECTICUT IN NEW YORK CITY THE AGENCY HAS AS MANY AS 1200 APARTMENTS TO SELL BUT NOT ALL WOULD BE SUBJECT TO RENT REGULATIONS IT IS REVIEWING ITS OPTIONS REGARDING WHAT STEPS TO TAKE NEXT REGARDING THE TENANTS WHO FILED THE SUIT WE AREN'T HERE TO DESTROY RENT CONTROL SAID MS FREEMAN WE JUST WANT TO GET THE BEST PRICE FOR THE TAXPAYER THE RTC SAID THAT COMPLYING WITH THE RENTCONTROL RULES WAS COSTING IT 19000 A MONTH ON THE NINE APARTMENTS DON BUCHWALD AN ATTORNEY FOR ONE OF THE TENANTS SAID HE HADN'T YET SEEN THE DECISION BUT DESCRIBED ITS RESULT AS A WINDFALL FOR THE RTC THAT WASN'T INTENDED BY CONGRESS THE RTC SHOULDN'T BE ABLE TO OVERCOME STATE LAW ANY MORE THAN THEY CAN OVERCOME LOCAL ZONING REGULATIONS HE SAID A FURTHER APPEAL IS POSSIBLE HE ADDED THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE JOINED THE APPEAL IN SUPPORT OF THE TENANTS 9403030130 940303 FUTURE COMMUNICATIONS MULLS PROPOSAL TO SETTLE ITS PORTION OF SEC LAWSUIT BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FUTURE COMMUNICATIONS INC IS DISCUSSING A PROPOSED SETTLEMENT OF ITS PORTION OF THE FRAUD LAWSUIT THAT THE SECURITIES AND EXCHANGE COMMISSION FILED LAST YEAR AGAINST THE COMPANY AND ITS TOP OFFICER UNDER THE PROPOSAL THE COMPANY WOULD AGREE WITHOUT ADMITTING OR DENYING GUILT NOT TO VIOLATE SECURITIES LAWS THE SEC LAWYER KATHERINE ADDLEMAN SAID BUT SHE SAID THE PROPOSAL HASN'T BEEN REVIEWED BY THE SEC'S REGIONAL COUNSEL OR BY THE AGENCY'S FIVEMEMBER COMMISSION WHICH MUST APPROVE ANY SETTLEMENT COMPANY OFFICIALS AND THEIR LAWYERS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT IN OCTOBER THE COMMISSION SUED THE CABLE TELEVISION AND PROGRAMMING COMPANY AND ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SERGIO BOSCO FOR ALLEGED FRAUD AND REPORTING VIOLATIONS THE SUIT CHARGED THAT FUTURE MADE HYPED CLAIMS AND SQUELCHED NEGATIVE NEWS TO INFLATE ITS STOCK PRICE AND THAT MR BOSCO BENEFITED FROM THE SCHEME FUTURE'S STOCK QUADRUPLED TO 2750 A SHARE DURING A TWOMONTH PERIOD LAST SUMMER BEFORE TRADING WAS HALTED ON AUG 31 THE NATIONAL ASSOCIATION OF SECURITIES DEALERS DELISTED THE STOCK IN OCTOBER FUTURE HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYCOURT PROTECTION SINCE NOVEMBER THE PROPOSED SETTLEMENT DOESN'T COVER THE SEC'S CLAIMS AGAINST MR BOSCO WHO STEPPED DOWN FROM HIS POSTS AFTER THE SUIT WAS FILED THE SEC IS SEEKING TO OBTAIN ANY PROFITS MR BOSCO MAY HAVE ILLEGALLY MADE BY TRADING IN THE COMPANY'S STOCK AND TO BAR HIM FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY AN ATTORNEY FOR MR BOSCO DIDN'T RETURN TELEPHONE CALLS BUT HE HAS PREVIOUSLY DENIED THE GOVERNMENT'S CHARGES UNDER THE PROPOSED SETTLEMENT THE PARTIES WOULD AGREE THAT CIVIL PENALTIES ARE APPROPRIATE BUT THE PENALITIES WON'T BE IMPOSED BECAUSE THE COMPANY IS FINANCIALLY STRAINED AND SHAREHOLDERS WOULD BE HURT MS ADDLEMAN SAID BUT SHE SAID IF THE COMPANY'S CLAIMS ABOUT ITS PRESENT FINANCIAL CONDITION ARE LATER SHOWN TO HAVE BEEN FRAUDULENT THE SEC WOULD THEN TRY TO COLLECT FINES UP TO A MAXIMUM OF 500000 DEPENDING ON WHAT A COURT ASSESSED FUTURE HAS FILED A CHAPTER 11 REORGANIZATION PLAN UNDER WHICH IT WOULD SELL ITS ASSETS TO TWO TINY COMPANIES OWNED IN PART BY THE BOSCO FAMILY 9403030129 940303 A VCR PLAYING A FIREPLACE VIDEO MIGHT HELP KEEP THE GHOST AT BAY BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL MOST HEARTH FIRES ARE APPEALING BECAUSE OF THEIR WARMTH AND BEAUTY MICHAEL MILNER'S IS DISTINCTIVE BECAUSE OF ITS AGE AS IT CRACKLES IN THE HEARTH OF THE SALTERSGATE INN A PUB IN BRITAIN'S YORKSHIRE IT LOOKS LIKE ANY FIRE STARTED YESTERDAY BUT THIS FLAME IS SAID TO BE 198 YEARS OLD I CAN'T SAY I ACTUALLY SAW THEM START IT CONCEDES MR MILNER BUT IT WAS BLAZING WHEN HE BOUGHT THE INN LAST SUMMER AND ELDERLY NATIVES OF THE SURROUNDING MOORS SWEAR THEY'VE NEVER SEEN IT OUT NOW CONTROVERSY IS RAGING AROUND THE OLD FLAME THE PROBLEM IS COST WITH ITS ORIGINAL FUEL PEAT FROM THE MOORS PROTECTED BY NATIONAL WILDLIFE LAWS MR MILNER MUST FEED IT EXPENSIVE COAL AND WOOD TO KEEP IT STOKED DAY AND NIGHT HE SAYS HE SPENDS AROUND 150 22344 A MONTH SO HE BELIEVES THAT THE YORKSHIRE AND HUMBERSIDE TOURIST BOARD WHOSE BROCHURES TOUT THE FIRE SHOULD HELP KEEP IT BURNING CAN'T DO IT RESPONDS JULIE TAYLOR A TOURIST BOARD PRESS OFFICER IF THE AGENCY FED HIS FIRE SHE SAYS THEN THE RAILWAY MUSEUM MIGHT DEMAND HELP BUYING AN OLD CABOOSE SOON ALL OF THE AGENCY'S 450 ATTRACTIONS WOULD WANT ASSISTANCE AS FOR THE FIRE'S INCLUSION IN TOURIST BROCHURES SHE HINTS THAT ANYONE NOT THANKFUL FOR PUBLICITY COULD BE DEPRIVED OF IT THAT THREAT HASN'T KEPT MR MILNER FROM GROUSING TO THE MEDIA EVEN THIS STRATEGY NEARLY BACKFIRED THOUGH WHEN A TV REPORTER EAGER FOR A RATINGS SPLASH THREATENED TO DOUSE THE FLAME ONAIR AS A SORT OF SCORCHEDEARTH POLICY MR MILNER HIMSELF TALKS OF LETTING THE FLAME DIE BUT HOWEVER MUCH THAT MIGHT HURT OTHER LOCAL BUSINESSES HE CONCEDES IT WOULD DEVASTATE THE INN IT SITS EIGHT MILES FROM TOWN AND THE FIRE IS WHAT BRINGS PEOPLE OUT HE SAYS LEGEND HAS IT THAT THE IGNITER OF THE FLAME STOKED IT NIGHT AND DAY TO KEEP ANYONE FROM SNOOPING UNDER THE HEARTH WHERE HE HAD BURIED A MURDER VICTIM IF THE FIRE GOES OUT THE LEGEND GOES THE VICTIM'S GHOST WILL COME OUT AND DESTROY THE WHOLE INN SAYS MR MILNER ONCE A PUB WALL COLLAPSED AFTER THE FIRE WAS ALLOWED TO DECLINE TO A SINGLE EMBER HE SAYS BUT THE PROSPECT OF A GHOST DESTROYING THE SALTERSGATE DOESN'T WORRY MS TAYLOR WHO SAYS THE REGION OFFERS PLENTY OF OTHER HAUNTS IN YORK THERE ARE QUITE A FEW INNS AND HOTELS WITH GHOSTS SHE SAYS 9403030128 940303 REVIEW & OUTLOOK EDITORIAL ASIDES DOMINANT SHAREHOLDER IN AN ERA OF RISING FEDERAL TAXES THE DATA BEAR WATCHING THE FUND FOR STOCKOWNERS RIGHTS A GROUP THAT PUSHES FOR MORE COMPLETE ACCOUNTING OF THE TAX BURDEN ON PUBLIC CORPORATIONS HAS RELEASED ITS LATEST 1992 FINDINGS FOR THOSE COMPANIES THAT ARE MAKING SUCH DISCLOSURES THEY SHOW THAT TOTAL TAXES PER SHARE AVERAGED 280 OF EARNINGS PER SHARE 9403030127 940303 WHO'S NEWS CRESCENT AIRWAYS CORP CRESCENT AIRWAYS CORP LAWRENCEVILLE GA THOMAS M RAMIREZ 55 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS HELICOPTER OPERATING AND LEASING COMPANY MR RAMIREZ WAS VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR PITTSBURGHBASED CORPORATE JETS INC HE SUCCEEDS DEAN SHEELY WHO WILL REMAIN ON THE COMPANY'S BOARD CRESCENT ALSO NAMED RONALD L LAFLEUR 52 VICE PRESIDENT OF MIAMIBASED MILL BROOK VICE PRESIDENTMARKETING 9403030126 940303 WHO'S NEWS QVC INC QVC INC WEST CHESTER PA FASHION DESIGNER DIANE VON FURSTENBERG 47 YEARS OLD WAS NAMED TO THE NEWLY CREATED ROLE OF CREATIVE PLANNING DIRECTOR FOR Q2 A LIFESTYLES ORIENTED HOMESHOPPING CHANNEL OWNED BY THIS RETAIL MERCHANDISING CONCERN MS VON FURSTENBERG A LONGTIME FRIEND OF QVC CHAIRMAN BARRY DILLER WILL CONCENTRATE ON SPECIAL PROJECTS WITH A NUMBER OF HIGHPROFILE DESIGNERS FOR THE CHANNEL WHICH IS SCHEDULED TO BEGIN OPERATIONS THIS SPRING QVC SAID 9403030125 940303 WHO'S NEWS SOFAMORDANEK GROUP INC SOFAMORDANEK GROUP INC MEMPHIS TENN JAMES J GALLOGLY 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE SPINALDEVICE COMPANY MR GALLOGLY SUCCEEDS ER PICKARD 45 WHO WAS NAMED CHAIRMAN MR PICKARD WILL RETAIN HIS POST AS CHIEF EXECUTIVE OFFICER THE CURRENT CHAIRMAN LD BEARD 61 IS RETIRING BUT WILL REMAIN ON THE BOARD PREVIOUSLY MR GALLOGLY WAS PRESIDENT AND CHIEF EXECUTIVE OF RESOUND INC A HEARINGAID COMPANY MR PICKARD HAD BEEN SOFAMOR DANEK'S PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1990 AND CHIEF EXECUTIVE SINCE 1991 9403030124 940303 IBM TO FARM OUT MORE MANAGEMENT OF PENSION FUND BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP PLANS TO FARM OUT MANAGEMENT OF THE MAJORITY OF ITS 29 BILLION EMPLOYEE PENSION FUND IN THE HOPE OF CUTTING COSTS AND GETTING BETTER RETURNS ALREADY OUTSIDE MANAGERS HANDLE ABOUT 13 BILLION OF THE 29 BILLION FUND NOW THE COMPUTER MAKER PLANS TO CONTRACT OUT THE MANAGEMENT OF ABOUT 8 BILLION MORE LEAVING AN EQUAL AMOUNT UNDER INTERNAL MANAGEMENT AS PART OF THE MOVE IBM WILL SLASH ITS 60PERSON FUNDMANAGEMENT STAFF BY MORE THAN HALF AND ITS PENSIONFUND MANAGER CARTER F WOLFE IS TAKING EARLY RETIREMENT MR WOLFE 54 YEARS OLD WILL BECOME CHIEF INVESTMENT OFFICER FOR THE HOWARD HUGHES MEDICAL INSTITUTE CHEVY CHASE MD THE NATION'S LARGEST PRIVATE PHILANTHROPY WITH ASSETS OF ABOUT 8 BILLION AND AN ANNUAL BUDGET OF 333 MILLION MR WOLFE SAYS IBM WILL USE MORE THAN ONE FUND MANAGEMENT COMPANY TO TAKE OVER THE ADDITIONAL PART OF THE PENSION FUND ONE OF THE NATION'S LARGEST IBM IS EVALUATING VARIOUS FUND MANAGERS BUT HAS NOT REACHED ANY DECISIONS HE ADDS THE FUNDS THAT WILL CONTINUE TO BE MANAGED INTERNALLY ARE INVESTED IN STOCK INDEXES SAYS MR WOLFE A 29YEAR IBM VETERAN SOME OF THE MORE THAN 30 INVESTMENT PROFESSIONALS AND SUPPORT STAFF WHO WILL LOSE THEIR JOBS WILL BE LAID OFF WHILE OTHERS MAY FIND JOBS ELSEWHERE IN IBM MR WOLFE SAYS HIS SUCCESSOR IN THE POST HAS NOT YET BEEN NAMED 9403030123 940303 MARKETING & MEDIA MARKETSCAN CEREALS AND SNACKS LEAD THE LIST OF BESTSELLING NEW FOOD ITEMS BY KATHLEEN DEVENY CEREALS AND SNACKS LED THE LIST OF LAST YEAR'S MOST SUCCESSFUL NEW FOOD BRANDS MANY OF THE BESTSELLING NEW ITEMS AREN'T ENTIRELY NEW WHICH PROBABLY HELPS EXPLAIN THEIR SUCCESS WHILE CONSUMERS SEEK VARIETY IN THEIR DIETS THEY ARE OFTEN LEERY OF UNFAMILIAR FLAVORS WHAT'S MORE DURING THE RECENT ECONOMIC SLUMP THEY HAVE GROWN EVEN LESS WILLING TO GAMBLE ON SOMETHING NEW FOR EXAMPLE KELLOGG CO'S RICE KRISPIES TREATS CEREAL WHICH RACKED UP SALES OF 85 MILLION LAST YEAR CERTAINLY HAD A FAMILIAR RING TO IT THE CEREAL IS BASED ON THE 50YEAROLD RECIPE FOR MARSHMALLOW SNACK BARS THAT STILL APPEARS ON BOXES OF RICE KRISPIES CEREAL AND IT TURNED OUT TO BE THE YEAR'S TOPSELLING NEW FOOD BRAND ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE IT WAS SO POPULAR IN FACT KELLOGG HAD TO APOLOGIZE IN NEWSPAPER ADS FOR SKIMPY SUPPLIES A SITUATION IT HADN'T ENCOUNTERED SINCE IT LAUNCHED CORN FLAKES IN 1907 POST BANANA NUT CRUNCH QUAKER TOASTED OATMEAL CEREAL AND SEVERAL OTHER NEW CEREALS ALSO FOUND A PLACE IN MANY CONSUMERS' SHOPPING CARTS BECAUSE MORE THAN 90 OF US HOUSEHOLDS KEEP CEREAL IN THEIR CUPBOARDS MARKETERS SAY THERE IS PLENTY OF OPPORTUNITY TO LURE SHOPPERS WITH A NEW FLAVOR AND CEREAL FANS WHO TYPICALLY KEEP SEVERAL VARIETIES ON HAND ARE USUALLY WILLING TO EXPERIMENT THE CEREAL CONSUMER LOVES VARIETY SAYS ROBERT E LOWE DIRECTOR OF NEW BUSINESS FOR POST A UNIT OF PHILIP MORRIS COS TO BE COMPETITIVE YOU NEED TO BE A PLAYER IN NEW PRODUCTS MANY OTHER MARKETERS PLAYED IT SAFE BY WHIPPING UP SLIGHT VARIATIONS OF EXISTING BRANDS SUCH AS A THINNER DORITOS TORTILLA CHIPS OR A PULPIER VERSION OF TROPICANA ORANGE JUICE CALLED PURE PREMIUM GROVESTAND AND KEEBLER CO A UNIT OF UNITED BISCUITS PLC SCORED A HIT WHEN IT REPACKAGED ITS LINE OF GRAHAM CRACKERS ADDED SUCH NEW FLAVORS AS CHOCOLATE AND APPLE CINNAMON AND DUBBED THEM GRAHAM SELECTS OLDFASHIONED GRAHAM CRACKERS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF BESTSELLING NEW FOOD PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS INFORMATION RESOURCES DEFINED NEW PRODUCTS AS NEW BRANDS OR SIGNIFICANT EXTENSIONS OF EXISTING BRANDS THAT WERE AVAILABLE IN FEWER THAN 5 OF US SUPERMARKETS DURING THE LAST FOUR WEEKS OF 1992 AND THAT REACHED NATIONAL DISTRIBUTION DURING 1993 THE NEW ITEMS ARE RANKED BY DOLLAR SALES DURING THE 52 WEEKS ENDED JAN 2 OVERALL THOUGH MARKETING EXPERTS SAY 1993 WAS A LACKLUSTER YEAR FOR THE NATION'S TEST KITCHENS SOME 8077 NEW FOOD ITEMS HIT RETAILERS' SHELVES A SLIGHT DECLINE FROM 1992 ACCORDING TO MARKETING INTELLIGENCE LTD A NAPLES NY COMPANY THAT TRACKS NEW PRODUCTS OF THOSE NEW ITEMS ONLY ABOUT 5 REPRESENT TRULY NEW BRANDS AS MANY AS 75 ARE MERELY NEW VARIETIES SIZES OR REFORMULATIONS OF EXISTING PRODUCTS UP FROM ABOUT 67 IN 1992 SUPERMARKET SHOPPERS CONTINUED TO SAMPLE HEALTHFUL FARE LAST YEAR SUCH AS PET INC'S PROGRESSO HEALTHY CLASSICS SOUPS AND NABISCO'S FAT FREE CRANBERRY NEWTONS MADE BY A UNIT OF RJR NABISCO HOLDINGS CORP OTHERS HOWEVER YIELDED TO TEMPTATION WITH HERSHEY FOODS CORP'S HUGS A WHITECHOCOLATE VERSION OF ITS KISSES OR EXTRA CHOCOLATEY CHIPS AHOY COOKIES THIS IS VERY MUCH OF AN INDULGENCE PRODUCT SAYS JERRY NOONAN VICE PRESIDENT OF MARKETING FOR NABISCO BISCUIT CO IT'S 40 CHOCOLATE AND MADE WITH REAL BUTTER SEVERAL NEW SNACKS CAUGHT CONSUMERS' ATTENTION LAST YEAR MOST NOTABLY KEEBLER CO'S CHACHO'S TORTILLA CHIPS ONE OF THE FEW TRULY NEW BRANDS ON THE LIST THE FLOUR TORTILLA CHIPS WHICH COME IN SUCH FLAVORS AS CHEESY QUESADILLA AND CINNAMON CRISPANA ARE MILDERTASTING THAN TRADITIONAL CORNBASED TORTILLA CHIPS OTHER MARKETERS SET OUT TO LURE NEW CUSTOMERS BY REPACKAGING EXISTING PRODUCTS AND PITCHING THEM DIFFERENTLY NESTLE SA AIMED ITS STOUFFER'S AND LEAN CUISINE LUNCH EXPRESS AT THE BROWNBAG SET SIMILAR IN SIZE TO THE DINNER ENTREES THE NEW ITEMS CAN ALL BE MICROWAVED IN LESS THAN FIVE MINUTES AND ARE MEANT TO BE EATEN DIRECTLY FROM THE PACKAGE TELEVISION ADS FOR THE LUNCH PRODUCTS FEATURE HARRIED OFFICE WORKERS WHO TAKE A BREAK WITH A STEAMING LUNCH SOME MARKETERS THOUGH SEEMED TO SUCCEED BY FLOUTING CONVENTIONAL MARKETING WISDOM JENO PAULUCCI THE 76YEAROLD CHAIRMAN OF LUIGINO'S INC SAYS GOOD TASTE AND LOW PRICES TURNED HIS MICHELINA'S INTERNATIONAL RECIPES ENTREES INTO A HIT THE FROZEN ENTREES WHICH COST ABOUT 1 FEATURE SUCH DISHES AS SWEDISH MEATBALLS AND TUNA NOODLE CASSEROLE LUIGINO'S IS PLANNING ITS FIRSTEVER AD FOR MICHELINA'S A FULL PAGE IN PARADE MAGAZINE FOR APRIL WE DIDN'T SPEND A DIME ON MEDIA MR PAULUCCI SAYS WE DIDN'T COUPON WE DIDN'T DO NOTHING 9403030122 940303 MONEYMARKET YIELDS ROSE IN LATEST WEEK WHILE ASSETS SLIPPED NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 283 FROM 281 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 279 FROM 277 WHILE THE 30DAY SIMPLE YIELD INCREASED TO 275 FROM 273 THE 30DAY COMPOUND YIELD EDGED UP TO 279 FROM 276 ASSETS OF 645 TAXABLE FUNDS ONE MORE THAN THE PREVIOUS WEEK FELL BY 610 BILLION TO 47266 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS TOOK OUT 647 BILLION WHILE INDIVIDUAL INVESTORS PUT IN 3708 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS SHORTENED BY ONE DAY TO 53 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD INCHED UP TO 199 FROM 198 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 311 FOR SOMEONE PAYING 36 IN TAXES AND TO 329 FOR THOSE WHO PAY 396 ASSETS OF 346 TAXEXEMPT FUNDS ONE MORE THAN THE PREVIOUS WEEK FELL BY 1289 MILLION TO 11266 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 55 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9403030121 940303 WHO'S NEWS DICKERSON TOP BELL ATLANTIC NEGOTIATOR IN TCI TALKS TO JOIN US HEALTHCARE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL FOR MONTHS THE PRESSURE GREW ON JAMES DICKERSON JR BELL ATLANTIC CORP'S CHIEF NEGOTIATOR IN THE DICEY AND DIVISIVE TALKS TO ACQUIRE TELECOMMUNICATIONS INC BUT HE KNEW HE WAS IN TROUBLE WHEN HE COULDN'T SLEEP AND NO LONGER ENJOYED EATING NOW MR DICKERSON A 47YEAROLD BELL ATLANTIC VICE PRESIDENT HAS DECIDED TO LEAVE THE COMPANY TO JOIN US HEALTHCARE INC AS A SENIOR VICE PRESIDENT HE QUIETLY NOTIFIED HIS BOSSES OF THE MOVE ABOUT THREE WEEKS AGO SHORTLY BEFORE THE COLLAPSE OF THE WOULDBE 16 BILLIONPLUS DEAL A FEW DAYS AFTER INFORMING HIS EMPLOYER MR DICKERSON STILL LEADING THE BELL ATLANTIC TEAM IN THE ILLFATED TALKS WITH THE CABLE CONCERN AWOKE ONE MORNING IN HIS NEW YORK HOTEL AND FELT DIZZY ALARMED HE PACKED HIS BAGS CHECKED OUT AND RETURNED HOME TO PHILADELPHIA NORMALLY A LOWKEY EXECUTIVE WITH LOW BLOOD PRESSURE MR DICKERSON WAS DIAGNOSED WITH A CASE OF HYPERTENSION HIS DOCTOR PRESCRIBED MEDICATION AND INSTRUCTED HIM TO TAKE A BREAK THE STRESS OF EIGHT MONTHS OF NEGOTIATIONS HAD BUILT UP ON ME MR DICKERSON SAYS BELL ATLANTIC SWITCHED THE LEAD ROLE IN THE TCI TALKS TO LAWRENCE BABBIO JR CHAIRMAN OF THE BELL ATLANTIC ENTERPRISES INTERNATIONAL SUBSIDIARY MR DICKERSON CUT BACK ON HIS DAYS IN THE OFFICE OFFERING COUNSEL ON THE DEAL TO HIS SUCCESSOR MR DICKERSON'S STEPPING ASIDE DIDN'T CAUSE THE DEAL'S COLLAPSE BUT HIS EXPERIENCE UNDERSCORES THE INTENSITY OF THE NEGOTIATIONS AND THE IMPACT OF THE DEAL ON THE PEOPLE WHO HAD DEVOTED THEMSELVES TO BRING TOGETHER TCI AND THE REGIONAL BELL TELEPHONE COMPANY HE HAD BEEN SPENDING SIX DAYS A WEEK IN A NEW YORK HOTEL AWAY FROM HIS WIFE OF 22 YEARS AND HIS TWO CHILDREN AND SUBSISTING ON ROOMSERVICE FARE HE WAS TRYING TO CRUNCH NUMBERS THAT REFUSED TO ADD UP AND FIND ANSWERS TO QUESTIONS THAT IN THE END COULDN'T BE ANSWERED THE TWO SIDES TOOK A BREAK OVER THE CHRISTMAS HOLIDAY EXCEPT FOR THE FLOW OF PAPER FROM LAWYERS THAT GAVE MR DICKERSON TIME TO TALK ABOUT HIS OWN POSSIBLE MERGER WITH US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION PROVIDER BASED IN BLUE BELL PA NEAR PHILADELPHIA HE SAYS THE COMPANY HAD INITIATED THE FIRST CONTACT IN THE FALL ABOUT THE SAME TIME HIS BLOOD PRESSURE WAS RISING BY MIDJANUARY MR DICKERSON'S HEALTH BEGAN TO SHOW SIGNS OF WEAR HE WAS HAVING TROUBLE SLEEPING THROUGH THE NIGHT SOMETIMES GETTING IN NO MORE THAN THREE HOURS AT A TIME I'D WAKE UP THINKING ABOUT NUMBERS ISSUES AND ELEMENTS OF THE NEGOTIATIONS HE SAYS ABOUT THE SAME TIME HIS APPETITE BEGAN TO DIMINISH DULLED HE BELIEVES FROM TOO MANY NIGHTS EATING HOTEL FOOD THEN CAME THE DIZZY SPELL BY THEN HE SAYS HE HAD ALREADY DECIDED TO LEAVE BELL ATLANTIC AND TRY HIS HAND IN A NEW INDUSTRY AND ALTHOUGH HE SAYS THE DECISION TO LEAVE AFTER 15 YEARS WASN'T A DIRECT RESULT OF THE BRUISING DEAL PROCESS HE CONCEDES IT MIGHT HAVE MADE HIM MORE RECEPTIVE TO MAKING THE JUMP MR DICKERSON WHO IS ALSO CONTROLLER AT BELL ATLANTIC PLANS TO JOIN US HEALTHCARE IN A FEW WEEKS HE WILL BE A MEMBER OF THE SENIOR MANAGEMENT TEAM REPORTING TO THE CHIEF FINANCIAL OFFICER IN HIS HOME STANDS A TREADMILL THAT HE DIDN'T GET TO USE MUCH OVER THE PAST YEAR BUT NOW THAT I'M MOVING INTO THE HEALTHCARE FIELD I PLAN TO BECOME HEALTHIER HE SAYS VOWING TO STICK TO A REGULAR EXERCISE REGIME HIS BLOOD PRESSURE HAS SINCE RETURNED TO NORMAL 9403030120 940303 WHO'S NEWS GREEN TREE FINANCIAL CORP GREEN TREE FINANCIAL CORP ST PAUL MINN ROBERT D POTTS 51 YEARS OLD VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED A DIRECTOR OF THIS DIVERSIFIED FINANCIALSERVICES CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN 9403030119 940303 WHO'S NEWS PHILIPS ELECTRONICS NV PHILIPS ELECTRONICS NV NETHERLANDS ROBERT MINKHORST PRESIDENT OF PHILIPS LIGHTING CO SOMERSET NJ WAS NAMED PRESIDENT OF PHILIPS CONSUMER ELECTRONICS CO KNOXVILLE TENN EFFECTIVE MARCH 14 PHILIPS CONSUMER ELECTRONICS MAKES AND MARKETS ELECTRONIC PRODUCTS INCLUDING TELEVISION SETS HIGHFIDELITY PRODUCTS AND DIGITAL COMPACT CASSETTE PLAYERS PHILIPS LIGHTING IS A MARKETER OF LAMPS BOTH ARE DIVISIONS OF PHILIPS ELECTRONICS NORTH AMERICA CORP A SUBSIDIARY OF THE NETHERLANDSBASED PARENT MR MINKHORST HAS BEEN PRESIDENT OF PHILIPS LIGHTING IN THE US SINCE 1991 HE WILL BE SUCCEEDED BY NICO BRUIJEL CURRENTLY PRESIDENT OF THE LIGHTING ELECTRONICS BUSINESS GROUP MR MINKHORST IS SUCCEEDING DONALD F JOHNSTONE WHO HAS BEEN NAMED PRESIDENT OF WHITTLE COMMUNICATIONS LP IN KNOXVILLE AS EARLIER REPORTED PHILIPS ELECTRONICS HOLDS A 25 WHITTLE STAKE 9403030118 940303 WHO'S NEWS ADC TELECOMMUNICATIONS INC ADC TELECOMMUNICATIONS INC MINNEAPOLIS WILLIAM J CADOGAN 45 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS MAKER OF TELECOMMUNICATIONS PRODUCTS SUCCEEDING CHARLES M DENNY JR WHO RETIRED 9403030117 940303 POLITICS & POLICY PRESSURED BY THE RIGHT GOP MODERATE CHAFEE CLINGS TO CLINTON'S GOAL OF UNIVERSAL HEALTH CARE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN YOUNG CONSERVATIVES DROVE JOHN CHAFEE OUT OF THE SENATE REPUBLICAN LEADERSHIP IN 1990 THE RHODE ISLAND PATRIARCH JUST SEEMED TO GET BUSIER WITH HIS HEALTHCARE TASK FORCE NOW AFTER YEARS OF THURSDAY MORNING MEETINGS SEN CHAFEE OCCUPIES PERHAPS THE MOST CRITICAL POSITION ON THE BIGGEST LEGISLATIVE ISSUE BEFORE CONGRESS LEADING A BLOC OF MODERATE VOTES THAT COULD BE PRESIDENT CLINTON'S LAST BEST HOPE OF ACHIEVING THE ADMINISTRATION'S AMBITIOUS GOAL OF UNIVERSAL COVERAGE THE AMERICAN PUBLIC WANTS SOME CHANGES IN THE HEALTHCARE SYSTEM OF THE UNITED STATES SAYS MR CHAFEE I AM VERY VERY ANXIOUS TO SEE A HEALTHCARE BILL ENACTED AND I THINK THERE ARE A SUBSTANTIAL NUMBER OF REPUBLICANS WHO FEEL EXACTLY AS I DO AS TASKFORCE CHAIRMAN MR CHAFEE HAS HELPED CRAFT A BILL THAT TAKES A MUCH MORE INCREMENTAL APPROACH TO REFORM BUT SHARES THE PRESIDENT'S GOAL OF UNIVERSAL COVERAGE WHEN THE CLINTON PLAN RODE HIGH IN THE POLLS THE CHAFEE OPTION WAS A SAFE HARBOR FOR THE GOP BUT AS THE ADMINISTRATION HAS FALTERED CONSERVATIVES WANT MODERATES TO MOVE FURTHER FROM THE PRESIDENT TO MAXIMIZE THE PARTY'S LEVERAGE EVERYBODY IS MOVING TO THE RIGHT SAYS ARIZONA SEN JOHN MCCAIN IF WE ARE FRACTURED WE WILL NOT PLAY IN THIS PROCESS A TWODAY RETREAT OF SENATE REPUBLICANS BEGINNING THIS EVENING IN MARYLAND WILL TEST THIS SENTIMENT AND MR CHAFEE'S RESOLVE IF THE MODERATES WEAKEN IT FURTHER DIMS THE ADMINISTRATION'S CHANCES BUT IF THIS CENTER HOLDS IT NOT ONLY GIVES THE PRESIDENT HOPE BUT HOLDS OPEN THE DOOR FOR THE GOP LEADERSHIP TO STILL SEEK SOME COMPROMISE WITH THE ADMINISTRATION NEXT TO MR CLINTON NO ONE MAY HAVE MORE AT STAKE IN THE OUTCOME THAN SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS FOR WHOM SEN CHAFEE IS BOTH POINT MAN AND CONSCIENCE OR KINDER ANGEL BORN MONTHS APART THE TWO MEN ARE VERY DIFFERENT PERSONALITIES BUT THEIR LIVES HAVE A CERTAIN SYMMETRY WHEN MR DOLE THE POOR KANSAS BOY WENT TO EUROPE IN WORLD WAR II AS AN OFFICER IN AN ELITE ARMY UNIT MR CHAFEE THE NEW ENGLAND YALIE WENT WEST AS A MARINE ENLISTED MAN AT GUADALCANAL IN THE PACIFIC BOTH SERVED RICHARD NIXON MR CHAFEE AS SECRETARY OF THE NAVY AND MR DOLE AS THE REPUBLICAN NATIONAL COMMITTEE CHAIRMAN AND AT ONE OF THE BLACKEST MOMENTS OF MR DOLE'S CAREER THE AFTERMATH OF HIS UNSUCCESSFUL 1976 VICE PRESIDENTIAL CAMPAIGN MR CHAFEE ARRIVED IN THE SENATE AS PART OF A MODERATE BLOC THAT HELPED RESURRECT THE KANSAN'S FORTUNES AND EVENTUALLY MADE HIM REPUBLICAN LEADER AS A WOUNDED VETERAN AND CHAMPION OF HEALTH REFORM SINCE THE EARLY YEARS OF THE NIXON ADMINISTRATION SEN DOLE COULD COMMAND CONSIDERABLE CREDIBILITY ON THE HEALTH ISSUE BUT PRESSURE FROM THE RIGHT HAS MADE HIM WAVER THE HARSH TONE OF HIS REMARKS AFTER PRESIDENT CLINTON'S JANUARY STATE OF THE UNION ADDRESS REMARKS PRINCIPALLY WRITTEN BY MARI MASENG WILL A FORMER DOLE CAMPAIGN PRESS SECRETARY NOW MARRIED TO CONSERVATIVE COLUMNIST GEORGE WILL PROVOKED STRONG OBJECTIONS FROM LONGTIME AIDE SHEILA BURKE AN EXPERIENCED NURSE WHO HELPED CRAFT THE CHAFEE PLAN AS LONG AS SEN CHAFEE AND HIS FELLOW MODERATES REMAIN UNITED THEY PROVIDE A COUNTERWEIGHT TO THE PRESSURE ON MR DOLE FROM THE RIGHT I BELIEVE BOB DOLE WANTS TO SEE HEALTHCARE REFORM IN OUR COUNTRY SAYS MR CHAFEE MR DOLE HIMSELF SPEAKING ON THE SENATE FLOOR IN ANTICIPATION OF THE GOP RETREAT SAID THAT THE PRESIDENT'S PLAN IS SLIPPING AWAY AND IT IS TIME FOR LEADERSHIP IN BOTH PARTIES TO SEE IF WE CANNOT DEAL WITH THIS ISSUE THIS YEAR MR CHAFEE'S ROLE HAS MADE HIM A TARGET FOR CONSERVATIVE EDITORIALISTS WHO HAVE PAINTED HIM AS LESS THAN TRUSTWORTHY AND EVEN UNPRINCIPLED AND IN HIS REELECTION THIS YEAR THE 71YEAROLD SENATOR FACES A PARTYPRIMARY CHALLENGE FROM AN ANTIGUNCONTROL BUSINESSMAN THOMAS POST WHOSE CAMPAIGN BUILDS ON TIES TO PATRICK BUCHANAN'S 1992 PRESIDENTIAL CAMPAIGN AND OFFERS A VEHICLE TO PUT PRESSURE ON MR CHAFEE ON HEALTHCARE ISSUES THE HARDEDGED TONE OF SOME OF MR CHAFEE'S CRITICS CAN RANKLE COLLEAGUES YOU DON'T WANT TO SPEND ANY TIME TRYING TO DETONATE JOHN CHAFEE HE HAS TOO MANY FRIENDS HERE SAYS SENATE GOP WHIP ALAN SIMPSON OF WYOMING ADDS SEN BOB KERREY A NEBRASKA DEMOCRAT THEY'LL HAVE TO PUT A NEW PARTY TOGETHER IF CHAFEE IS DESCRIBED AS UNPRINCIPLED MORE BROADLY THE DIVISIONS DRAMATIZE A GENERATIONAL SHIFT IN A SENATE GOP CAUCUS INCREASINGLY DOMINATED BY A YOUNGER BREED OF CONSERVATIVES EMBODIED BY TEXAS SEN PHIL GRAMM THE FACTION THAT ENGINEERED MR CHAFEE'S 1990 OUSTER FROM THE PARTY'S NO 3 LEADERSHIP POSITION WHILE THE NEW GENERATION IS MORE APT TO SEE MANY OF THE 1960S GREAT SOCIETY PROGRAMS AS UNALLOYED MISTAKES MR CHAFEE LIKE MR DOLE HIMSELF HAS NIXONERA ROOTS IN TRYING TO COME UP WITH ALTERNATIVES TO THOSE PROGRAMS THE SAME DIVIDE IS EVIDENT IN THE DEBATE OVER HEALTH CARE WHILE IRVING KRISTOL A NEOCONSERVATIVE WRITER WITH ROOTS IN THE SAME PERIOD ARGUES THAT CURRENTLY REPUBLICANS ARE PAYING A PRICE FOR DOING NOTHING NIXON TRIED MR KRISTOL'S SON WILLIAM A FORMER TOP AIDE TO VICE PRESIDENT DAN QUAYLE IS ASSOCIATED WITH THE NOCRISIS HEALTHREFORM MINIMALISTS ON THE RIGHT FOR MR CHAFEE ANOTHER DRIVING FORCE IN HIS ROLE IS HIS EXPERIENCE AS GOVERNOR OF RHODE ISLAND IN THE 1960S AND HIS EXPOSURE TO THE HEALTHCARE PROBLEMS OF POOR AND WORKINGCLASS CHILDREN NOT COVERED BY MEDICAID THESE CHILDREN ARE NOT GETTING THE PREVENTIVE CARE THAT THEY SHOULD BE GETTING HE SAYS THEY'RE NOT ELIGIBLE FOR IT I WAS GOVERNOR AND DEALT WITH THE PROBLEM ONE OF SEN CHAFEE'S GOALS IS TO PROVIDE SUBSIDIES TO FAMILIES MAKING AS MUCH AS 240 OF THE POVERTY LEVEL THOUGH CRITICS CONTEND HIS PLANS FOR FINANCING THOSE SUBSIDIES FALL SHORT WITHIN THE SENATE GOP MR CHAFEE HAS DRAWN ON REGIONAL TIES TO SUCH FELLOW MODERATES AS SEN WILLIAM COHEN OF MAINE AND HE HAS REACHED OUT WITH SOME SUCCESS TO THE LIKES OF SEN ROBERT BENNETT A UTAH FRESHMAN WHOSE AGE 60 AND SERIOUSNESS MAKE HIM SOMETHING OF A SOULMATE MOST IMPORTANT TO THE FATE OF MR CHAFEE'S EFFORTS ARE HIS COLLEAGUES ON THE SENATE FINANCE COMMITTEE INCLUDING THE RANKING REPUBLICAN OREGON'S BOB PACKWOOD AS WELL AS MISSOURI'S JOHN DANFORTH MINNESOTA'S DAVID DURENBERGER AND MR DOLE THE SAME GROUP WAS BEHIND THE DEFEAT OF MR CLINTON'S ECONOMICSTIMULUS BILL LAST YEAR BUT TO AN EXTRAORDINARY DEGREE MANY OF THEM HAVE REACHED A POINT IN THEIR LIVES WHEN ACHIEVING HEALTHCARE REFORM HAS TAKEN ON SINGULAR IMPORTANCE MR DANFORTH IS SLATED TO RETIRE AND SENS DURENBERGER AND PACKWOOD ARE LOOKING FOR SOME POLITICAL REDEMPTION AFTER SCANDALS THAT HAVE TARNISHED THEIR CAREERS ALL OF WHICH FUELS SEN CHAFEE'S DETERMINATION TO HOLD OUT AGAINST HIS PARTY'S RIGHT WING I THINK EVERY DAY EVERYTHING TILTS MORE AND MORE TOWARD OUR PLAN HE SAYS I'M NOT GOING TO SAY FROM ON HIGH WE WERE GIVEN THE GOLDEN TABLETS BUT I THINK WE HAVE A VERY VERY GOOD BILL AND IT'S LOOKING BETTER ALL THE TIME 9403030116 940303 INTERNATIONAL NEWSPAPER PUBLISHING PLC BACKS BID BY MIRROR GROUP SPECIAL TO THE WALL STREET JOURNAL LONDON THE BOARD COMMITTEE OF UK'S NEWSPAPER PUBLISHING PLC IS BACKING A REVISED TAKEOVER BID FROM MIRROR GROUP NEWSPAPERS PLC THAT INCLUDES A CASH ALTERNATIVE THE REVISED OFFER WOULD ALLOW NEWSPAPER PUBLISHING SHAREHOLDERS TO TAKE 355 PENCE 529 A SHARE IN CASH FOR THEIR HOLDINGS RATHER THAN THE PROPOSED SHARE SWAP THE VALUE OF THE CASH ELECTION REPRESENTS A 180 PREMIUM OVER NEWSPAPER PUBLISHING'S SHARE PRICE PRIOR TO THE TAKEOVER BID LAUNCHED IN FEBRUARY THE CONSORTIUM SAID THE CASH OPTION VALUES THE COMPANY WHICH PUBLISHES LONDON NEWSPAPERS THE INDEPENDENT AND INDEPENDENT ON SUNDAY AT 747 MILLION 1113 MILLION THE CONSORTIUM'S EARLIER BID STILL STANDS IT OFFERS 1043 CASH FOR EVERY 100 ORDINARY SHARES OF NEWSPAPER PUBLISHING AND 135 NEW MIRROR GROUP ORDINARY SHARES FOR EACH ONEPENCE SHARE THE ORDINARY SHARE OFFER VALUES EACH ORDINARY SHARE OF NEWSPAPER PUBLISHING AT 3367 PENCE 9403030115 940303 WHO'S NEWS REVLON GROUP INC REVLON GROUP INC NEW YORK RICHARD W BLOSSOM WAS NAMED PRESIDENT OF THE ASIA/PACIFIC REGION AND EXECUTIVE VICE PRESIDENT OF REVLON INTERNATIONAL A DIVISION OF REVLON INC THE COSMETICS MARKETING UNIT OF REVLON GROUP IN THE NEWLY CREATED POSITION MR BLOSSOM 45 YEARS OLD WILL BE RESPONSIBLE FOR REVLON INTERNATIONAL'S OPERATIONS THROUGHOUT THE REGION OTHER THAN JAPAN FOR THE LAST THREE YEARS HE WAS PRESIDENT ASIA PACIFIC FOR PEPSICO FOODS INTERNATIONAL A UNIT OF PEPSICO INC 9403030114 940303 WHAT'S NEWS WORLDWIDE ISRAEL DISARMED SOME SETTLERS AND SOLDIERS KILLED TWO YOUTHS IN JERICHO ISRAELI SOLDIERS KILLED TWO PALESTINIAN YOUTHS AS FURY OVER THE HEBRON MOSQUE MASSACRE SPREAD TO THE WEST BANK TOWN OF JERICHO WHERE THE PLO PLANS TO SET UP ITS HEADQUARTERS UNDER A PEACE PLAN WITH ISRAEL AS PART OF AN EFFORT TO CURB VIOLENCE ISRAEL'S SECURITY FORCES DISARMED SEVEN EXTREMIST JEWISH SETTLERS IN THE OCCUPIED TERRITORIES AND BANNED THEM FROM PALESTINIAN AREAS MILITANT PALESTINIANS MEANWHILE CALLED FOR REVENGE ATTACKS FOR THE HEBRON KILLINGS AND ISRAEL PUT ITS EMBASSIES AND CITIZENS ABROAD ON ALERT PRIME MINISTER RABIN'S ANTITERRORISM ADVISER URGED ISRAELIS WITH GUN PERMITS TO CARRY THEIR WEAPONS AT ALL TIMES REFLECTING CONCERN ABOUT SECURITY MEXICAN REBELS REACHED A TENTATIVE AGREEMENT WITH GOVERNMENT NEGOTIATORS FOR ENDING A PEASANT UPRISING IN SOUTHERN MEXICO THE 32POINT ACCORD WHICH INCLUDES PROPOSED DEMOCRATIC REFORMS AND ECONOMIC MEASURES TO HELP INDIGENOUS PEOPLES STILL MUST BE APPROVED BY REBEL SUPPORTERS IN THE STATE OF CHIAPAS SERB FORCES INTENSIFIED THEIR MILITARY OFFENSIVE ON SEVERAL FRONTS IN BOSNIA DESPITE NEW DIPLOMATIC EFFORTS TO END THE FIGHTING SERB ARTILLERY POUNDED THE MUSLIM ENCLAVE OF MAGLAJ IN THE NORTH AND THREE ROCKETPROPELLED GRENADES WERE FIRED AROUND THE JEWISH CEMETERY IN SARAJEVO THE UN SAID SERBS ALSO BLOCKED SOME RELIEF CONVOYS US PROSECUTORS ASKED A FEDERAL COURT TO ORDER ACCUSED CIA SPY AMES AND HIS WIFE TO TRANSFER OVER 22 MILLION FROM FOREIGN BANK ACCOUNTS SO IT CAN BE SEIZED IF THEY ARE CONVICTED MEANWHILE DEFENSE SECRETARY PERRY SAID IT WOULD TAKE MONTHS TO ASSESS THE DAMAGE THAT WAS ALLEGEDLY CAUSED BY AMES JAPAN'S HOSOKAWA BACKED AWAY FROM PLANS TO SHUFFLE HIS CABINET A TURNAROUND THAT REFLECTS THE FRAGILITY OF HIS RULING COALITION THE PRIME MINISTER INDICATED HE REGRETTED THE REVERSAL WHICH FOLLOWED SEVERAL DAYS OF INFIGHTING CHIEF JUSTICE REHNQUIST DENIED SEN PACKWOOD'S REQUEST TO WITHHOLD HIS DIARIES FROM A SENATE PANEL WHILE APPEALING A SUBPOENA IN A SETBACK FOR THE OREGON REPUBLICAN WHO IS BATTLING SEXUAL MISCONDUCT CHARGES REHNQUIST SAID THE CASE WAS UNDERMINED BY A DISCLOSURE THAT THE TRANSCRIPTS AND TAPES MAY HAVE BEEN ALTERED HUBBELL DENIED REPORTS THAT HE OVERBILLED CLIENTS INCLUDING A FEDERAL AGENCY AS A PRIVATE LAWYER IN ARKANSAS THE ASSOCIATE ATTORNEY GENERAL WAS RESPONDING TO A REPORT THAT HIS FORMER PARTNERS IN THE ROSE LAW FIRM WERE INVESTIGATING HIS BILLING PRACTICES ADMINISTRATION OFFICIALS OUTLINED SCALEDBACK WELFARE REFORM PROPOSALS DURING A MEETING WITH A GROUP OF CABINET MEMBERS ONE PLAN WOULD COST 6 BILLION IN 1999 WHILE A LESS COSTLY ALTERNATIVE WOULD PROVIDE LESS CHILDCARE FUNDING RUSSIA HAS TOLD NATO IT SOON WILL JOIN THE PARTNERSHIP FOR PEACE PLAN FOR VARIOUS MILITARY LINKS WITH THE WESTERN ALLIANCE ACCORDING TO NATO SOURCES IN BRUSSELS MOSCOW'S POSITION ON THE PARTNERSHIP PLAN PREVIOUSLY HAD BEEN UNCLEAR PENNSYLVANIA'S SEN SPECTER SQUARED OFF AGAINST THE CLINTON ADMINISTRATION AS THE SUPREME COURT HEARD ARGUMENTS ON WHETHER FEDERAL JUDGES SHOULD REVIEW GOVERNMENT DECISIONS TO CLOSE MILITARY BASES SPECTER THE FIRST SENATOR TO APPEAR BEFORE THE COURT IN 22 YEARS IS CHALLENGING A 1991 DECISION TO CLOSE THE PHILADELPHIA NAVAL SHIPYARD NEW YORK POLICE ARRESTED A LEBANESE MAN AND CHARGED HIM WITH 15 COUNTS OF ATTEMPTED MURDER IN CONNECTION WITH TUESDAY'S SHOOTING ATTACK ON A VAN OF HASIDIC STUDENTS TWO JORDANIANS WERE ARRESTED ON LESSER CHARGES LINKED TO THE ATTACK WHICH LEFT ONE VICTIM BRAIN DEAD ANOTHER CRITICALLY WOUNDED AND TWO WITH MINOR INJURIES THE US ISN'T LIKELY TO SEND PATRIOT MISSILES TO SOUTH KOREA FOR AT LEAST SEVERAL WEEKS BECAUSE SEOUL IS WORRIED THAT THE ACTION WOULD UPSET NUCLEARWEAPONS TALKS WITH PYONGYANG US COMMANDERS SAID VIETNAMESE AND US NEGOTIATORS AGREED IN PRINCIPLE ON THE OPENING OF LIAISON OFFICES AND ON US WAR CLAIMS AGAINST VIETNAM HANOI SAID THE VIETNAMESE OFFICIALS SAID THEY WOULD DO EVERYTHING POSSIBLE TO OPEN THEIR WASHINGTON OFFICE QUICKLY 9403030113 940303 AIG UNIT IN PACT WITH SWISSAIR NEW YORK AMERICAN INTERNATIONAL GROUP INC'S INTERNATIONAL LEASE FINANCE CORP AND SWISSAIR SAID THEY SIGNED A 350 MILLION LEASE CONTRACT COVERING 10 AIRBUS AIRCRAFT PLUS TWO OPTIONED AIRCRAFT SWISSAIR WILL LEASE FIVE NEW TECHNOLOGY AIRCRAFT FROM INTERNATIONAL LEASE FINANCE FOR 10 YEARS AND FIVE USED A310200 AIRCRAFT UNTIL MID1995 SWISSAIR IS A ZURICH SWITZERLAND BASED AIRLINE AND A UNIT OF SWISS AIR TRANSPORT CO INTERNATIONAL LEASE FINANCE LEASES AND REMARKETS ADVANCED TECHNOLOGY COMMERCIALJET AIRCRAFT TO AIRLINES AND AMERICAN INTERNATIONAL IS AN INSURANCE COMPANY 9403030112 940303 MARKETING UPSTART BRANDS CHALLENGE COKE PEPSI IN CANADA BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN MOST MARKETS COKE AND PEPSI GIVE HEADACHES TO THE COMPETITION IN CANADA THE TWO BEVERAGE GIANTS ARE THE ONES REACHING FOR THE ASPIRIN PRIVATELABEL SODAS THROUGH A COMBINATION OF NEW PRODUCTS AGGRESSIVE MARKETING AND LOW PRICES ARE CUTTING INTO THE MARKET SHARE OF COCACOLA CO AND PEPSICO INC IN CANADA NOW BOTH COKE AND PEPSI ARE STARTING TO CUT COSTS AND INTRODUCE NEW PRODUCTS TO RECAPTURE CONSUMERS' INTEREST THE BATTLE INDUSTRY OBSERVERS SAY IS A LESSON IN HOW QUICKLY PRIVATE LABELS CAN DISPLACE BIG BRANDS INDEED PRIVATELABEL BRANDS CAN BE MAJOR CHANGE MAKERS IN AN INDUSTRY SAYS RAY GOLDBERG A PROFESSOR AT HARVARD BUSINESS SCHOOL WHO HAS STUDIED SOFTDRINK MARKETS GROCERS IN CANADA SAY COKE AND PEPSI HAD BEGUN TO TAKE THEM FOR GRANTED THE GROCERS WOULD FEATURE THEM IN STORES' CHOICEST DISPLAY SPACE AND THEN BECAUSE OF RETAIL PRICE WARS END UP SELLING THEM AT PRICES BARELY ABOVE AND SOMETIMES BELOWCOST COKE AND PEPSI FIGURED WE COULDN'T DO WITHOUT THEIR PRODUCTS SAYS EUGENE YAKIMOSKI OWNER OF AN IGA STORE IN WINNEPEG MANITOBA SMALL WONDER AS RECENTLY AS 1990 PRIVATELABEL SOFT DRINKS ACCOUNTED FOR LESS THAN 5 OF SALES ACCORDING TO GROCERS' ESTIMATES THE PACKAGING CERTAINLY DIDN'T HELP A BRAND CALLED YUKON CLUB FEATURED THOSE TWO WORDS IN PLAIN WHITE LETTERS ON A COLORED LABEL AT A&P CANADA UNTIL JUST FIVE YEARS AGO PRIVATELABEL DRINKS IN CANS HAD TO BE OPENED WITH A CAN OPENER SAYS WILLIAM SHEINE VICE PRESIDENT OF MARKETING FOR THE SUPERMARKET CHAIN THE REVOLUTION BEGAN IN 1991 WHEN CANADA'S MAJOR GROCERY CHAINS LED BY LOBLAW COS AGREED TO SELL SODAS MADE BY TORONTOBASED COTT CORP USING THE RC COLA FORMULATION THE CHAINS CREATED FLASHIER PACKAGING FOR THE NEW DRINKS AND GAVE THEM NAMES LIKE PRESIDENT'S CHOICE LOBLAW'S MULTIPRODUCT PRIVATELABEL LINE AND OUR COMPLIMENTS AT STORES SUPPLIED BY OSHAWA PROMOTIONS AND ADVERTISING HIGHLIGHTED THE PRIVATELABEL DRINKS AND GROCERS PLACED THE DRINKS IN ENDOFAISLE DISPLAYS HUNG BANNERS AND SET UP VENDING MACHINES TO SELL THE PRODUCTS FOR 25 CANADIAN CENTS ABOUT 19 US CENTS AND A THIRD THE PRICE OF A COKE OR PEPSI AT THE TIME BUT SUPERMARKET EXECUTIVES SAY THEIR PROFIT MARGIN ON THE PRIVATELABEL DRINKS EVEN CONSIDERING MARKETING COSTS IS AS HIGH AS 20 COMPARED WITH A HIGH OF 5 ON COKE AND PEPSI PRODUCTS THE COMPARATIVE FIGURES THEY ADD TAKE INTO ACCOUNT THAT COKE AND PEPSI DELIVER PRODUCTS TO STORES AND CONTRIBUTE TO MERCHANDISING COKE AND PEPSI DISPUTE THOSE NUMBERS TONY EAMES A COKE EXECUTIVE IN CANADA SAYS RETAILERS CAN MAKE PROFIT MARGINS AS HIGH AS 20 DEPENDING ON HOW MUCH THEY DISCOUNT THE PRODUCTS RETAILERS ALSO FOUND CANADIAN CONSUMERS EAGER FOR NEW BRANDS PARTICULARLY WHEN THEY ARE CHEAPER MOST OF MY CUSTOMERS ARE MEATANDPOTATOES FAMILIES WITH THREE KIDS LOOKING FOR THE BEST VALUE SAYS CLIFF MARSHALL MANAGER OF THE A&P IN NORTH BAY ONTARIO THE RESULTS PRIVATELABEL SOFT DRINKS IN CANADIAN SUPERMARKETS NOT LONG AGO A NEGLIGIBLE PRESENCE NOW ACCOUNT FOR ABOUT ONEQUARTER OF ALL SOFTDRINK SALES ACCORDING TO DATA COMPILED BY THE AC NIELSEN MARKETRESEARCH FIRM HAVING WATCHED THEIR SALES VOLUME DECLINE EXECUTIVES AT BOTH COKE AND PEPSI SAY THEY EXPECT THEIR PRICES THIS YEAR TO COME CLOSER TO THAT OF PRIVATE LABELS INDEED COKE LAST WEEK MADE A DEAL WITH LOBLAW TO GAIN MORE SHELF SPACE IN ITS STORES BUT WITH AD COSTS OF ABOUT 20 MILLION A YEAR EACH PLUS THE EXPENSES LINKED TO HUGE DISTRIBUTION SYSTEMS THE BEVERAGE GIANTS WILL BE HARD PRESSED TO MATCH PRIVATELABEL PRICES INSTEAD THEY ARE TURNING TO NEW MARKETING PLOYS LAST YEAR FOR INSTANCE PEPSI INTERVIEWED 2000 CANADIAN CONSUMERS TO FIND OUT WHAT THEY SEE AS VALUE IN A DRINK A PRIMARY RESPONSE WAS PRODUCT INNOVATIONS THUS PEPSI THIS YEAR IS INTRODUCING PEPSI MAX WITH A THIRD THE CALORIES OF A REGULAR PEPSI THE COMPANY ALSO PLANS TO SELL PRODUCTS PROMOTED IN THE US SUCH AS THE BIG SLAM ONELITER BOTTLE AND AN EASYTOCARRY CASE OF 24 CANS COKE HAS CREATED NEW ADS AIMED AT HOUSEWIVES WHO ARE USUALLY OVERLOOKED IN FAVOR OF TEENS ONE OF THE ADS FEATURES A NEW CONTOURED PLASTIC BOTTLE THAT COKE SAYS IS EASIER TO GRIP AND BOTH COMPANIES ARE CUTTING COSTS IN THE PAST DECADE COKE AND PEPSI CONSOLIDATED THEIR LOCAL CANADIAN BOTTLERS INTO SINGLE SYSTEMS IN THE FOURTH QUARTER COCACOLA BEVERAGES LTD THE TORONTO BOTTLER 49OWNED BY COCACOLA SAID IT WOULD HALT PRODUCTION AT HALF OF ITS 16 BOTTLING PLANTS AND LAY OFF 13 OF ITS 4300 EMPLOYEES THE COMPANY IS ALSO WORKING TO SPEED UP DELIVERIES AND CUT WAREHOUSING COSTS PEPSI WHICH RUNS COMPANYOWNED OPERATIONS OUT OF TORONTO IS CLOSING ONE BOTTLING PLANT AND CUTTING 45 JOBS CAN PRIVATELABEL SOFT DRINKS BE AS SUCCESSFUL IN THE US COTT SAYS IT NOW SELLS ITS DRINKS TO 56 US CHAINS INCLUDING A&P AND SAFEWAY UP FROM A HANDFUL OF CUSTOMERS JUST A FEW YEARS AGO AND IN THE FIRST 10 MONTHS OF 1993 PRIVATE LABELS GAINED MORE VOLUME THAN ANY MAJOR BRAND IN THE US ACCORDING TO THE TRADE PUBLICATION BEVERAGE DIGEST SUPERMARKETS WANT GOOD QUALITY AND GOOD VALUE SAYS PROF GOLDBERG AT HARVARD AND THEY ARE SEEING SOMEONE WHO PROVIDES BOTH RECESSION OR NO RECESSION 9403030111 940303 BUSINESS BRIEF PHYSICIANS HEALTH SERVICES INC FOURTHPERIOD NET ROSE 35 DUE TO LOWER MEDICAL COSTS PHYSICIANS HEALTH SERVICES INC TRUMBULL CONN REPORTED A 35 INCREASE IN FOURTHQUARTER NET INCOME LARGELY BECAUSE OF LOWER MEDICAL COSTS THE MANAGEDCARE COMPANY'S NET ROSE TO 33 MILLION OR 35 CENTS A SHARE FROM 24 MILLION OR 39 CENTS A SHARE A YEAR EARLIER PERSHARE RESULTS REFLECTED A 48 INCREASE IN THE WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING A RESULT OF AN INITIAL PUBLIC OFFERING IN JANUARY 1993 PREMIUM REVENUE DECLINED 16 TO 662 MILLION FOR THE FULL YEAR EARNINGS INCREASED 39 TO 119 MILLION OR 131 A SHARE FROM 86 MILLION OR 136 A SHARE THE NUMBER OF WEIGHTED AVERAGE SHARES OUTSTANDING INCREASED 45 OVER THE YEAR PREMIUM REVENUE ROSE 35 TO 2748 MILLION PHYSICIANS HEALTH ATTRIBUTED ITS RESULTS TO ITS LOWER MEDICAL LOSS RATIO WHICH DECREASED TO 829 IN 1993 FROM 844 IN 1992 HOSPITALBED DAYS DECLINED 107 TO 360 PER 1000 MEMBERS IN 1993 FROM 403 PER 1000 MEMBERS IN 1992 PHYSICIANS HEALTH SHARES FELL 75 CENTS TO 2150 IN THE NASDAQ STOCK MARKET 9403030110 940303 OLD AMERICA STORES' SALES RISE HOWE TEXAS OLD AMERICA STORES INC SAID FEBRUARY SALES ROSE 20 TO 72 MILLION FROM 6 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN A YEAR ROSE 3 OLD AMERICA IS A RETAILER OF HOMEDECORATING PRODUCTS AND ARTS AND CRAFTS ITEMS 9403030109 940303 HUMANA BUYS GROUP HEALTH LOUISVILLE KY HUMANA INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF GROUP HEALTH ASSOCIATION FOR ABOUT 55 MILLION WASHINGTONBASED GROUP HEALTH WHICH PROVIDES COMPREHENSIVE MEDICAL COVERAGE TO ABOUT 125000 MEMBERS IN THE METROPOLITAN WASHINGTON AREA HAS ANNUAL PREMIUM REVENUE OF ABOUT 250 MILLION HUMANA SAID HUMANA PROVIDES MANAGEDCARE HEALTHPLAN SERVICES TO OVER 16 MILLION MEMBERS IN 11 STATES MAINLY THROUGH HEALTHMAINTENANCE AND PREFERREDPROVIDER ORGANIZATIONS 9403030108 940303 SEPARATIST PREDICTS INDEPENDENT QUEBEC COULD JOIN NAFTA WASHINGTON QUEBEC SEPARATIST LEADER LUCIEN BOUCHARD PREDICTED THAT IF QUEBEC WERE TO SEPARATE FROM CANADA IT WOULDN'T HAVE ANY PROBLEM JOINING THE NORTH AMERICAN FREE TRADE AGREEMENT US POLITICAL ANALYSTS HOWEVER SAID MR BOUCHARD HAD NO GROUNDS FOR MAKING SUCH AN ASSUMPTION ABOUT NAFTA WHICH WAS NEGOTIATED BY THE US CANADA AND MEXICO AND PROVIDES FOR A GRADUAL ELIMINATION OF THEIR TRADE BARRIERS MR BOUCHARD IN A SPEECH HERE TO THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES SAID IT SEEMS FARFETCHED TO PRESUME THAT THE EXISTING NORTH AMERICAN FREE TRADE RELATIONSHIP WOULD BE UPSET BY QUEBEC BECOMING INDEPENDENT QUEBEC IS INCLUDED IN A VAST AND EXPANDING FREETRADE ZONE AND THIS WILL NOT CHANGE HE SAID WILLIAM MERKIN A TRADE CONSULTANT AND A FORMER US TRADE NEGOTIATOR SAID TALKS WILL BE REQUIRED IF QUEBEC BECOMES A SOVEREIGN STATE AND WANTS TO JOIN NAFTA HE SAID THE US ADMINISTRATION WOULD NEED CONGRESSIONAL AUTHORITY TO ENTER INTO THE NEGOTIATIONS ANY AGREEMENT WITH QUEBEC ALSO WOULD REQUIRE CONGRESSIONAL APPROVAL HE SAID MR BOUCHARD WHO LEADS THE BLOC QUEBECOIS PARTY SAID THE US MARKET IS THE KEY TO QUEBEC'S FUTURE GROWTH AND PROSPERITY HE SAID THAT IF QUEBEC HOLDS AN INDEPENDENCE VOTE WITHIN THE NEXT 18 MONTHS AS HE EXPECTS THE SEPARATISTS WILL FOCUS THEIR CAMPAIGN ON THE ECONOMIC BENEFITS OF SEPARATION FROM CANADA IN THE PAST THE SEPARATISTS HAVE DEMANDED QUEBEC INDEPENDENCE TO ASSURE THE SURVIVAL OF THE PROVINCE'S DISTINCTIVE CULTURE INCLUDING THE FRENCH LANGUAGE MR BOUCHARD PREDICTED THE INDEPENDENCE DEBATE WILL NOW TAKE AN ECONOMIC FOCUS BECAUSE WE HAVE ACHIEVED A REASONABLE DEGREE OF SECURITY CONCERNING OUR IDENTITY 9403030107 940303 COMMODITIES COPPERFUTURES PRICES RISE ON LATE STOCK RALLY DEMAND IN US OTHER METALS PLUNGE IN LONDON BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPERFUTURES PRICES ROSE DESPITE PRICE WEAKNESS AMONG OTHER INDUSTRIAL METALS GAINING STRENGTH AS THE STOCK MARKET STAGED A LATEDAY RALLY AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY WAS UP 135 CENTS TO SETTLE AT 8725 CENTS A POUND ANALYSTS SAID COPPER'S SURGE AT THE COMEX AS THE PRICES OF METALS SUCH AS NICKEL ZINC AND ALUMINUM PLUNGED ON THE LONDON METAL EXCHANGE REFLECTS THE FACT THAT THE US ECONOMY IS STILL FAR MORE VIBRANT THAN ECONOMIES OVERSEAS PHYSICAL DEMAND FOR COPPER IS QUITE BUOYANT IN THE US SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN BUT THE REST OF THE WORLD ISN'T AS STRONG COPPER PRICES REMAIN SUBSTANTIALLY HIGHER THAN THEY WERE LATE LAST YEAR DESPITE PLUNGING LAST WEEK A BASIC RAW MATERIAL OF THE US HOUSING AND AUTO INDUSTRIES COPPER HAS BENEFITED FROM SURGES IN BOTH THESE BUSINESSES COPPER'S PRICE WAS DOWN SLIGHTLY EARLY YESTERDAY ON WEAKNESS IN THE STOCK MARKET BUT RALLIED AS STOCKS REBOUNDED IN THEORY THE STOCK MARKET IS A BAROMETER OF FUTURE BUSINESS CONDITIONS AND TO THAT END MIGHT SIGNIFY POTENTIAL DEMAND OR LACK OF IT SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC ITS EFFECT ON COPPER PRICES IS LARGELY PSYCHOLOGICAL COMMODITY FUNDS OR MANAGED POOLS OF INVESTOR MONEY WERE BIG BUYERS OF COPPERFUTURES CONTRACTS YESTERDAY MAINLY TO LIQUIDATE THEIR SHORT POSITIONS OR WAGERS THAT PRICES WOULD FALL ANALYSTS SAID BUYING BY THESE BIG INVESTORS TYPICALLY HELPS TO SUPPORT PRICES IN RECENT WEEKS COPPER PRICES HAVE BEEN LOCKED IN A NARROW RANGE BETWEEN 855 CENTS AND 88 CENTS A POUND MR SAVAIKO SAID AT THE UPPER END OF THE RANGE COPPER PRODUCERS AND DEALERS HAVE TENDED TO EXERT DOWNWARD PRESSURE ON PRICES BY SELLING FUTURES CONTRACTS AT THE LOWER END LIQUIDATION OF SHORT POSITIONS BY COMMODITY FUNDS AND OTHERS TENDS TO SUPPORT PRICES IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF WHEATFUTURES CONTRACTS REBOUNDED AFTER SKIDDING EARLIER THIS WEEK TO THEIR LOWEST LEVELS IN ABOUT THREE MONTHS IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE 125 CENTS A BUSHEL TO SETTLE AT 342 A BUSHEL THE MODEST RALLY WAS TRIGGERED IN PART BY REPORTS THE US HAD AGREED TO SUBSIDIZE THE SALE OF A RELATIVELY SMALL AMOUNT OF HARD RED WINTER WHEAT39500 METRIC TONSTO THE FORMER SOVIET UNION CORN AND SOYBEAN PRICES SETTLED LOWER ENERGY YET ANOTHER WINTER STORM IN THE NORTHEASTERN US GAVE A SLIGHT BOOST TO HEATINGOIL FUTURES PRICES YESTERDAY IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE HOWEVER NATURALGAS FUTURES WERE SLIGHTLY LOWER DESPITE THE WEATHER FORECASTS AS AN INDUSTRY CONFERENCE IN HOUSTON THINNED THE RANKS OF TRADERS MOST CRUDEOIL MARKET PARTICIPANTS ALREADY SEEM TO BE HOLDING BACK AHEAD OF THE MARCH 25 MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THE WEEKLY REPORT ON US OIL INVENTORIES FROM THE AMERICAN PETROLEUM INSTITUTE WAS FOR THE MOST PART IGNORED ALTHOUGH IT CONTAINED BULLISH DATA APRIL CRUDE OIL ROSE NINE CENTS A BARREL TO FINISH AT 1476 9403030106 940303 ECONOMY SEC CHIEF QUESTIONS REGULATORS' ABILITY TO HANDLE BANKS' ACQUISITIONS OF FUNDS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT PREDICTED A RUSH OF BANK ACQUISITIONS OF MUTUAL FUNDS AND WARNED THAT BANK REGULATORS ARE POORLY EQUIPPED TO DEAL WITH THE ONSLAUGHT MR LEVITT SAID THE RUSH WILL BE INSPIRED BY MELLON BANK CORP'S IMPENDING ACQUISITION OF DREYFUS CORP'S MUTUALFUND BUSINESS THE ACQUISITION HAS REVIVED QUESTIONS ABOUT BANKS' IMMUNITY FROM OVERSIGHT BY THE SEC MANY OF THOSE QUESTIONS ARE BEING PRESSED BY REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IN THE FIRST OF TWO DAYS OF HEARINGS ON THE MELLONDREYFUS MERGER MR LEVITT SAID THE TRANSACTION DRAMATICALLY HIGHLIGHTS THE SEC'S CONCERNS ABOUT THE CURRENT REGULATION OF BANKS REP DINGELL SHARES THOSE CONCERNS AND HAS INTRODUCED LEGISLATION TO GIVE THE SEC OVERSIGHT OF BANKS' SECURITIES ACTIVITIES MR LEVITT REPEATEDLY ENDORSED THAT LEGISLATION YESTERDAY CURRENT LAW ALLOWS THE SEC TO EXAMINE MUTUAL FUNDS THAT ARE OPERATED BY BANKHOLDING COMPANIES BUT DOESN'T ALLOW THE AGENCY TO INSPECT BANKS THAT ACT AS ADVISERS TO MUTUAL FUNDS THAT'S LIKE OPERATING WITH ONE ARM BEHIND OUR BACK MR LEVITT TOLD THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS ALSO HEADED BY REP DINGELL FEDERAL BANKING REGULATORS ARE RESPONSIBLE FOR MOST OF THE OVERSIGHT OF BANKS' SECURITIES ACTIVITIES AND MR LEVITT MADE IT CLEAR THAT HE HAS LITTLE RESPECT FOR THOSE REGULATORS' ABILITIES TO RECOGNIZE FRAUD AND PUNISH IT WHEN IT COMES TO SECURITIES HE SAID BANK REGULATORS LACK THE EXPERIENCE IN TERMS OF TRAINING IN TERMS OF A HISTORY OF REGULATORY OVERSIGHT IN THESE AREAS IT'S NOT SOMETHING THAT YOU COME BY BY A MANUAL MR LEVITT SAID MELLON AND DREYFUS HAVE MADE PROVISIONS TO ADD INVESTOR PROTECTIONS AFTER THE MERGER INCLUDING KEEPING THE MUTUALFUND OPERATIONS SEPARATE FROM MELLON BANK AND THEREBY UNDER SEC REGULATION BUT AS MORE AND MORE BANKS RECOGNIZE THE POTENTIAL GOLD MINE IN AFFILIATING WITH MUTUAL FUNDS MR LEVITT SAID LESSCAREFUL MERGER PARTNERS WILL SURFACE GENERALLY THE FIRST ONES OUT OF THE GATE ARE THE ONES THAT ARE MOST SECURE AND MOST RESPONSIBLE THE SEC CHAIRMAN SAID THE MERGER MUST BE APPROVED BY THE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG WHO IS SCHEDULED TO TESTIFY TODAY TO THE SUBCOMMITTEE THE TOP OFFICERS OF BOTH MELLON AND DREYFUS ARE ALSO SCHEDULED TO TESTIFY MR LUDWIG IS EXPECTED TO TELL THE SUBCOMMITTEE THAT FEDERAL BANKING REGULATORS ARE FULLY CAPABLE OF GRASPING THE COMPLEXITY OF SECURITIES ACTIVITIES HE IS ALSO EXPECTED TO SAY THAT BANKS' ENTRY INTO THE MUTUALFUND BUSINESS WILL CONTRIBUTE TO THE BANKS' FINANCIAL STABILITY 9403030105 940303 JEAN PHILIPPE FRAGRANCES UNIT NEW YORK JEAN PHILIPPE FRAGRANCES INC SAID ITS INTER PARFUMS SA SUBSIDIARY COMPLETED THE ACQUISITION OF THE TRADEMARKS OF PARFUMS MOLYNEUX AND PARFUMS WEIL FROM COSMETIQUES ET PARFUMS DE FRANCE ID SA FOR 315 MILLION CASH AND 200000 SHARES OF JEAN PHILIPPE FRAGRANCES COMMON STOCK IN ADDITION CURRENT INVENTORY WAS PURCHASED FOR ABOUT 22 MILLION IN NASDAQ STOCK MARKET TRADING JEAN PHILIPPE SHARES FELL 75 CENTS TO 11 9403030104 940303 INDUSTRY FOCUS CAR RENTAL BUSINESS IS PROVING COSTLY FOR BIG THREE AUTO MAKERS FIND PROFITS ARE ELUSIVE DESPITE HUGE INVESTMENTS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WITH THEIR PLAYS FOR PROFIT IN RENTAL CAR COMPANIES FIZZLING DETROIT'S BIG THREE AUTO MAKERS ARE FINDING THAT GETTING MONEY OUT OF RENTACAR CONCERNS IS A LOT HARDER THAN PUTTING IT IN IN THE LATE 1980S THE BIG THREE SNAPPED UP STAKES IN RENTAL CAR COMPANIES HOPING TO LOCK IN HIGHVOLUME CUSTOMERS WHOSE ORDERS WOULD KEEP FACTORIES RUNNING DURING TIMES OF SLACK CONSUMER DEMAND NOW HOWEVER THE CONSUMER MARKET IS BACK WHILE THE RENTAL CAR BUSINESS IS STUCK IN PARK GENERAL MOTORS CORP IS SHOPPING ITS NATIONAL CAR RENTAL UNIT ON WALL STREET ACCORDING TO INVESTMENT BANKERS CHRYSLER CORP SAYS IT WILL CONSIDER OFFERS FOR ITS CAR RENTAL OPERATIONS BUT HAS NO PLANS TO SELL THEM ONLY FORD MOTOR CO IS INCREASING ITS PRESENCE IN THE BUSINESS RAISING ITS STAKE IN HERTZ CORP AND PROCLAIMING ITS COMMITMENT TO THE BUSINESS BUT THE POOR PROFIT OUTLOOK IN THE RENTAL CAR INDUSTRY HAS LED ANALYSTS TO QUESTION WHETHER DETROIT WILL EVER RECOVER THE BILLIONS IT INVESTED IN THE RENTAL CAR INDUSTRY DURING THE PAST SEVEN YEARS THE AUTO MAKERS PUMPED HUGE NUMBERS OF CARS THROUGH THE DAILY RENTAL FLEETS FROM 1987 TO 1992 THE RESULT WAS DIRTCHEAP RENTAL PRICES AND A HUGE SUPPLY OF LATEMODEL USED CARS THAT WREAKED HAVOC WITH NEW CAR SALES AND PRICING DURING THE LAST RECESSION NOW THE RECESSION'S OVER BUT THE EXPLOSION IN BUSINESS TRAVEL THAT FUELED RENTAL CAR INDUSTRY GROWTH DURING THE PAST DECADE HAS SLOWED AND A LOT OF THE SMALLER RENTAL CAR FIRMS ARE GOING OUT OF BUSINESS OR BEING MERGED INTO BIGGER COMPANIES DETROIT'S RENTAL CAR INVESTMENTS ALSO HAVE FALLEN GM AND CHRYSLER ACKNOWLEDGE THEY'VE POSTED LOSSES IN THEIR RENTAL CAR OPERATIONS THOUGH NEITHER COMPANY WILL SAY HOW MUCH HERTZ HAS REMAINED PROFITABLE BUT FORD IS HARDLY UNSCATHED IN ADDITION TO ITS EQUITY STAKE IN HERTZ FORD INVESTED SEVERAL HUNDRED MILLION DOLLARS TO PROP UP BUDGET RENTACAR IN THE LATE 1980S SAYS DAVID MCCAMMON FORD'S VICE PRESIDENT OF FINANCE THE IRONY IS THAT DETROIT HAS ITSELF TO BLAME FOR MUCH OF THE RENTAL INDUSTRY'S CURRENT WOES BEFORE THE LATE 1980S RENTAL CAR COMPANIES USED TO PURCHASE CARS HOLD THEM NINE TO 14 MONTHS AND THEN SELL THEM AT THEIR OWN USED CAR LOTS BUT TO SPUR MORE SALES TO THE DAILY RENTAL FLEET THE BIG THREE DURING THE LATE 1980S BEGAN BUYING BACK CARS FROM THE RENTAL COMPANIES AFTER JUST FOUR MONTHS ON TOP OF THAT CAR MAKERS BEGAN GIVING RENTAL COMPANIES CASH REBATES AS HIGH AS 1400 A CAR THE TERMS OFFERED BY DETROIT WERE SO FAVORABLE THAT RENTAL CAR COMPANIES BEGAN MAKING MONEY BY BUYING CARS AND SELLING THEM BACK TO THE MANUFACTURER RATHER THAN BY RENTING THEM AS A RESULT FOR EXAMPLE A SUBCOMPACT CAR COULD BE RENTED FOR AS LITTLE AS 65 A WEEK IN LOS ANGELES IN 1991 IT WAS OF COURSE TOO GOOD TO LAST THE BIG THREE LED BY GM PRESIDENT JOHN F SMITH JR PULLED THE PLUG ON THE MONEYLOSING RENTAL CAR DEALS BEGINNING IN 1992 THE BIG THREE BEGAN TO SHARPLY REDUCE THE FLOW OF CARS TO RENTAL FLEETS THEY SLASHED THE CASH REBATES FOR RENTAL CARS AND STARTED REQUIRING THAT RENTAL COMPANIES KEEP CARS FOR SIX MONTHS INSTEAD OF FOUR IN ALL THE AUTO MAKERS JACKED UP PRICES CHARGED TO THE RENTAL COMPANIES BY 60 INDUSTRY EXECUTIVES SAY THAT'S BEEN GOOD FOR THE BIG THREE BUT HARD ON THEIR RENTAL CAR PARTNERS THE RENTAL COMPANIES HAVE RAISED THEIR RENTAL PRICES IN RESPONSE BUT MARKET PRESSURES HAVE FORCED THEM TO RETREAT FROM PRICE HIKES IN THE PAST WHILE RATES FOR LEISURE USE HAVE SOARED CORPORATE RATES WHICH ARE OFTEN NEGOTIATED PRIVATELY HAVE BARELY BUDGED FOR THE PAST TWO YEARS LAST WEEK HERTZ RAISED ITS DAILY RENTAL PRICES BETWEEN 7 AND 15 IN RESPONSE TO YET ANOTHER INCREASE IN CAR PRICES FROM DETROIT OTHER RENTAL CAR COMPANIES HAVE ALREADY FOLLOWED SUIT AND THE INDUSTRY IS HOPING THAT PRICE INCREASES WILL STICK THIS TIME BUT INDUSTRY ANALYSTS ARE SKEPTICAL IT'S JUST NOT A PARTICULARLY DESIRABLE BUSINESS SAYS AUTO ANALYST MARYANN KELLER OF FURMAN SELZ INC CONSIDER GM'S NATIONAL CAR RENTAL SYSTEMS UNIT WHICH WAS POSTING HUGE LOSSES TWO YEARS AGO RESULTING IN GM TAKING A 744 MILLION AFTERTAX WRITEOFF OF ITS INVESTMENT IN 1992 A YEAR AGO GM HIRED A TURNAROUND EXPERT TO RUN NATIONAL CAR RENTAL AND THE UNIT IS NOW SHOWING AN OPERATING PROFIT ALTHOUGH GM REFUSES TO SAY HOW MUCH IF THE NEW ROUND OF PRICE INCREASES STICKS NATIONAL CAR RENTAL WOULD BE A SOLIDLY PROFITABLE COMPANY ACCORDING TO LARRY RAMAEKERS NATIONAL CAR RENTAL'S CHIEF TURNAROUND OFFICER AND HE BELIEVES THEY WILL STICK OTHERS AREN'T SO SURE CHRYSLER HAS YET TO SEE SIGNIFICANT PRICE INCREASES IN THE COMPETITIVE FLORIDA MARKET SAYS JOSEPH CAPPY HEAD OF CHRYSLER'S RENTAL CAR OPERATIONS SUBCOMPACT CARS IN FLORIDA ARE STILL RENTING FOR AS LITTLE AS 19 A DAY MR CAPPY HAS NO DOUBT RENTAL RATES WILL EVENTUALLY RISE BECAUSE OF MARKET FORCES BUT ISN'T SURE HOW LONG THAT WILL TAKE PRICES HAVE TO CHANGE LAMENTS MR CAPPY THEY AREN'T ANYWHERE NEAR WHERE THEY SHOULD BE UNTIL THAT CHANGES BOTH CHRYSLER AND GM ARE LIKELY TO HAVE TROUBLE SELLING THEIR RENTAL CAR BUSINESSES ANALYSTS SAY WHILE MR CAPPY SAYS CHRYSLER HAS NO PLANS TO SELL ITS THRIFTY DOLLAR AND SNAPPY RENTAL UNITS CHRYSLER EXECUTIVES SAY PRIVATELY THEY WOULD SELL IF THEY COULD FIND A BUYER FORD MEANWHILE IS HEADED IN THE OTHER DIRECTION IT'S IN THE PROCESS OF INCREASING ITS 49 EQUITY STAKE IN HERTZ TO 54 LIKEWISE FORD HAS NO PLAN TO REDUCE ITS INVESTMENT IN BUDGET MR MCCAMMON THE FORD EXECUTIVE SAYS HERTZ WHICH EARNED 53 MILLION LAST YEAR HAS REMAINED PROFITABLE AND THE SAME IS BELIEVED TRUE OF EMPLOYEEOWNED AVIS RENTACAR AND CLOSELY HELD ALAMO RENT A CAR BUT NATIONAL AND BUDGET ARE MUCH SHAKIER INDUSTRY OBSERVERS SAY THE PICTURE IS CLOUDY SINCE MOST OF THE COMPANIES INCLUDING NATIONAL AND BUDGET DON'T REPORT FINANCIAL RESULTS PUBLICLY BOTH HERTZ AND BUDGET RENT ABOUT 70 OF THEIR CARS FROM FORD AND MR MCCAMMON SAYS FORD WANTS TO CONTINUE ITS CURRENT RELATIONSHIP WITH BOTH COMPANIES INDEED DETROIT ISN'T QUITTING RENTAL FLEET SALES COLD TURKEY THIS YEAR THE INDUSTRY WILL RUN ABOUT 1150000 CARS THROUGH DAILY RENTAL FLEETS THAT'S DOWN FROM A PEAK OF 1550000 IN 1991 ACCORDING TO AUTO RENTAL NEWS A TRADE MAGAZINE BUT IT'S STILL ENOUGH TO KEEP FIVE ASSEMBLY PLANTS WORKING FULLTIME FOR A YEAR AND LONG TERM ANALYSTS SAY THE CAR RENTAL BUSINESS MAY ONCE AGAIN PRODUCE RESPECTABLE RETURNS THEY SHOULD BE OK SAYS ANALYST JOHN CASESA OF WERTHEIM SCHRODER & CO AS LONG AS WHAT HAPPENED IN THE LATE 1980S DOESN'T HAPPEN AGAIN THAT THE AUTO COMPANIES DON'T GET STUCK WITH A LOT OF EXCESS CAPACITY AND DESTROY PRICES IN THE RENTAL BUSINESS 9403030103 940303 INTERNATIONAL NEW EU REPORT SEEKS TO ALIGN PRICES OF DRUGS BY JAMES PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN UNION'S EXECUTIVE COMMISSION ADOPTED A POLICY PAPER THAT REJECTS EARLIER CALLS FOR NATIONAL GOVERNMENTS TO PHASE OUT PRICE CONTROLS ON PHARMACEUTICALS INSTEAD THE LONGAWAITED DOCUMENT SEEKS TO BOLSTER THE EU DRUG INDUSTRY THROUGH MORE MODEST MEANS INCLUDING IMPROVING THE SECTOR'S PUBLIC IMAGE AND URGING MEMBER STATES TO BRING THEIR WILDLY DIFFERENT DRUGPRICING POLICIES INTO ALIGNMENT MANY OFFICIALS VIEWED THE REPORT AS A SETBACK FOR THE INDUSTRY COMMISSIONER MARTIN BANGEMANN WHO HAD ARGUED THAT THE REMOVAL OF PRICE CONTROLS WOULD ALLOW DRUG MAKERS TO INVEST MORE IN INNOVATIVE PRODUCTS THE FINAL VERSION EMPHASIZES PUBLICHEALTH CONCERNS AN APPROACH URGED BY PADRAIG FLYNN THE SOCIAL AFFAIRS COMMISSIONER AND BACKED BY COMMISSION PRESIDENT JACQUES DELORS AND OTHER COMMISSIONERS IT WAS NOT FLYNN AGAINST BANGEMANN BUT HALF THE COMMISSION AGAINST BANGEMANN ONE OFFICIAL SAID IN THE END THIS OFFICIAL ADDED THE REPORT'S SECTION ON PHASING OUT PRICE CONTROLS WAS TRIMMED FROM FOUR PAGES TO ONE PARAGRAPH THAT PASSAGE STATES ONLY THAT THE COMMISSION IS PREPARED TO TALK TO MEMBER STATES ABOUT THE IMPACT OF PRICE CONTROL ON COMPETITION AND THE MANAGEMENT OF HEALTH EXPENDITURE MR BANGEMANN'S SPOKESMAN SOUGHT TO PUT A BRAVE FACE ON THE CHANGES CALLING THE FINAL VERSION AN IMPROVEMENT HE SAID THE DIFFERENCES AMOUNT TO A QUESTION OF DIPLOMATIC STYLE AND SEMANTICS THE MESSAGE ON PRICING IS IN THERE HE INSISTED IT'S ALL A MATTER OF PRICE PRICE PRICE SOME OFFICIALS ARGUED THAT THERE WAS LITTLE NEED TO DWELL ON PRICES SINCE MANY EU GOVERNMENTS ARE ALREADY EXPLORING WAYS TO REFORM THEIR PRICECONTROL SYSTEMS ALL MEMBER STATES KNOW THAT PRICE CONTROL IS NOT EFFECTIVE SAID PATRICK DEBOYSER A MEMBER OF THE COMMISSION'S WORKING GROUP ON PHARMACEUTICALS THE QUESTION IS HOW TO DO IT IN ANSWERING THAT QUESTION THE COMMISSION RECOMMENDS WORKING CLOSELY WITH MEMBER STATES TO PROMOTE A LESS FRAGMENTED EU MARKET THE REPORT URGES THE EU TO GET ITS NEWLY CREATED MEDICINEEVALUATION AGENCY UP AND RUNNING FOR EXAMPLE THE COMMISSION ALSO HOPES TO CREATE AN ENVIRONMENT MORE FAVORABLE TO BIOTECHNOLOGY AND TO PROMOTE THE USE OF CHEAPER GENERIC MEDICINES CHARLES GOLDSMITH CONTRIBUTED TO THIS ARTICLE 9403030102 940303 ENTERPRISE GOVERNMENT WATCH CHAMBER PRESSED BY SMALL FIRMS ALTERS HEALTH STANCE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL SMALLBUSINESS STRAINS SHOW IN A CHAMBER OF COMMERCE POLICY REVERSAL THIS WEEK THE US CHAMBER'S BOARD REJECTED MANDATORY EMPLOYER HEALTHCARE COVERAGE AFTER MANY SMALLCOMPANY MEMBERS HAD COMPLAINED BITTERLY ABOUT ITS EARLIER STANCE FAVORING A MANDATE THE NATIONAL BUSINESS GROUP HEARD FROM A LOT OF SMALL COMPANIES IN THE HINTERLANDS WHO READ ABOUT THE CHAMBER'S POLICY POSITION IN THE NEWSPAPERS SAYS KATHY MCKIMMIE AN OFFICIAL OF THE INDIANA CHAMBER OF COMMERCE ADDS JOHN POLK PRESIDENT OF THE COUNCIL OF SMALLER ENTERPRISES A CHAMBER AFFILIATE IN CLEVELAND IT'S GOOD TO KNOW THE CHAMBER LISTENED TO AND HAS CHOSEN TO STAND UP FOR ITS MEMBERS SOME OF THE CHAMBER'S BIGCOMPANY MEMBERS BACK THE IDEA OF REQUIRING EMPLOYERS TO PROVIDE HEALTH INSURANCE A KEY PART OF PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN REP JOHN BOEHNER R OHIO CHARGES THAT THE US CHAMBER'S INITIAL SUPPORT FOR EMPLOYER MANDATES ALSO DEVELOPED BECAUSE SOME WASHINGTON STAFF AND BOARD MEMBERS WANTED TO BE PLAYERS AND WORK WITH THE WHITE HOUSE MR BOEHNER A CHAMBER MEMBER WHEN HE WORKED AS A MANUFACTURER'S REPRESENTATIVE SAYS THAT HE AND MORE THAN 30 OTHER MEMBERS OF CONGRESS LOBBIED THE BOARD TO REVERSE ITS STANCE RICHARD LESHER THE US CHAMBER'S PRESIDENT REJECTS THE NOTION THAT HIS GROUP WANTED TO CURRY FAVOR WITH THE ADMINISTRATION HE ALSO DENIES THAT THE POLICY TURNAROUND REFLECTS A SPLIT BETWEEN BIG CORPORATIONS AND THE SMALL BUSINESSES THAT MAKE UP 95 OF THE ORGANIZATION'S MEMBERSHIP ASKED WHETHER SOME SMALLFIRM MEMBERS HAD THREATENED TO QUIT HE RESPONDS WE HAVE A NUMBER OF MEMBERS WAITING TO SEE WHAT THE BOARD DID MY GUESS IS THEY'LL BE VERY PLEASED AND WILL STAY WITH THE CHAMBER A HEALTHCARE ALTERNATIVE MAY HELP SMALL FIRMS BUT HURT THE BUDGET WASHINGTON HEALTHCARE LOBBYISTS SAY A HEALTHCARE COMPROMISE BEING CONSIDERED BY SOME CONGRESSIONAL DEMOCRATS COULD OVERCOME SMALLBUSINESS OBJECTIONS TO MANDATED COVERAGE THE PLAN WOULD EXEMPT COMPANIES WITH 100 OR FEWER WORKERS FROM PROVIDING INSURANCE THIS IS THE MAIN COMPROMISE THAT MIGHT MAKE A DIFFERENCE IN TERMS OF SMALLBUSINESS SUPPORT SAYS MICHAEL BROMBERG EXECUTIVE DIRECTOR OF THE FEDERATION OF AMERICAN HEALTH SYSTEMS WHICH REPRESENTS FORPROFIT HOSPITALS UNDER THE COMPROMISE THE GOVERNMENT WOULD PROVIDE TAX INCENTIVES TO HELP SMALLER COMPANIES' WORKERS BUY HEALTH COVERAGE MIDSIZE AND LARGER COMPANIES WOULD STILL HAVE TO PAY PART OF THEIR EMPLOYEES' COSTS BUT THE PROPOSAL ALSO COULD INCREASE FEDERAL OUTLAYS BY ENCOURAGING SMALL COMPANIES THAT CURRENTLY OFFER INSURANCE TO DROP IT WARNS ED HOWARD EXECUTIVE DIRECTOR OF THE ALLIANCE FOR HEALTH CARE REFORM ANOTHER WASHINGTON LOBBYING GROUP SMALLER EMPLOYERS WOULD BE CRAZY NOT TO PHASE OUT THE COVERAGE THEY OFFER IF THE GOVERNMENT PROVIDES SUBSIDIES TO INDIVIDUAL WORKERS HE ADDS MR HOWARD OFFERS ONE POSSIBLE SOLUTION EXEMPTING ONLY COMPANIES WITH 10 OR FEWER WORKERS BENNIE THAYER PRESIDENT OF THE NATIONAL ASSOCIATION FOR THE SELFEMPLOYED SAYS HIS GROUP WOULD BACK A PLAN THAT EXEMPTS COMPANIES WITH 20 OR FEWER EMPLOYEES SUCH A HYBRID PLAN WOULD ELIMINATE THE FEDERAL SUBSIDIES THAT THE ADMINISTRATION HAS PROPOSED FOR SMALL LOWWAGE EMPLOYERS MR THAYER CONTENDS THE CLINTON SUBSIDY IDEA WOULD CREATE TOO MUCH UNCERTAINTY FOR SUCH BUSINESSES THE PROBLEM WITH THAT SUBSIDY IS WHEN NOT WHETHER YOU'D GET IT HE SAYS SMOOTHER BANKRUPTCIES THE SENATE WILL CONSIDER A BILL LATER THIS YEAR THAT WOULD CREATE AN EXPERIMENTAL STREAMLINED PROCESS FOR REORGANIZING A SMALL COMPANY UNDER THE BANKRUPTCY CODE CURRENTLY ONLY ABOUT 10 OF SMALL FIRMS STAY IN BUSINESS AFTER THEY FILE FOR REORGANIZATION UNDER CHAPTER 11 OF THE CODE THE ALTERNATIVE PROCESS KNOWN AS CHAPTER 10 LETS A TRUSTEE OVERSEE THE RIGHTS OF CREDITORS AND PROVIDES FOR QUICKER DECISIONS ON A COMPANY'S REORGANIZATION WHEN A NORTH CAROLINA BANKRUPTCY JUDGE INFORMALLY ADOPTED A SIMILAR PROCESS SEVERAL YEARS AGO THE MOVE NEARLY HALVED THE TIME THAT SMALL FIRMS SPENT IN HIS COURT BUT THE AMERICAN BANKERS ASSOCIATION STRONGLY DISLIKES THE IDEA ARGUING THAT IT WON'T PROTECT MAJOR CREDITORS' RIGHTS TO BE PAID IN FULL BEFORE OTHER OBLIGATIONS ARE MET A BILL AIMS TO HELP SMALL RETAILERS COMPETE WITH MAILERS MAILORDER COMPANIES COULD BE CHARGED STATE AND LOCAL SALES TAXES ON GOODS SHIPPED OUTOFSTATE IF CONGRESS APPROVES A BILL PROPOSED BY DALE BUMPERS D ARK CHAIRMAN OF THE SENATE'S SMALL BUSINESS COMMITTEE SEN BUMPERS SAYS THE MEASURE SEEKS TO PROTECT MAIN STREET FIRMS FROM THE UNFAIR COMPETITION THAT OCCURS WHEN CONSUMERS ORDER FURNITURE AND OTHER ITEMS THROUGH MAILORDER CATALOGS TO AVOID PAYING LOCAL SALES TAXES THE MEASURE WOULD EXEMPT MAILORDER COMPANIES WITH LESS THAN 3 MILLION IN US SALES IT ALSO WOULD ALLOW COMPANIES TO PAY ONE STANDARD RATE IF THEY ARE SUBJECT TO SEVERAL LOCAL TAX RATES WITHIN A STATE A 1992 US SUPREME COURT DECISION REMOVED AN EARLIER LEGAL BAR THAT PREVENTED STATES FROM COLLECTING THE TAXES SIGNIFICANTLY MORE SMALL RETAILERS HAVE COMPLAINED IN RECENT YEARS ABOUT LOSING SALES TO MAILORDER HOUSES A SMALL BUSINESS COMMITTEE AIDE SAYS RAY JONES A LONG BEACH CALIF BOAT DEALER WROTE TO SEN BUMPERS TO COMPLAIN ABOUT LOSING A 240000 SALE IN JANAURY WHEN A WOULDBE BUYER INSTEAD ORDERED A BOAT FROM AN OREGON DEALER TO AVOID 19800 IN TAXES BUT THE DIRECT MARKETING ASSOCIATION A NEW YORK TRADE GROUP OPPOSES THE MEASURE CLAIMING THAT COLLECTING THE TAXES WOULD UNFAIRLY BURDEN ITS MAILORDER HOUSE MEMBERS SMALL TALK THE RESOLUTION TRUST CORP THE US AGENCY THAT SELLS FAILED THRIFTS HAS SET UP NEW BIDDING PROCEDURES TO HELP MINORITY INVESTORS ACQUIRE FAILED INSTITUTIONS IN PREDOMINANTLY MINORITY NEIGHORHOODS SMALL US EXPORTERS GET TOO LITTLE FEDERAL HELP IN FINANCING THEIR DEALS THE SMALL BUSINESS EXPORTERS ASSOCIATION CONTENDS IN A REPORT IT ASKS THE US EXPORTIMPORT BANK TO HELP BIG BANKS TEACH SMALL ONES HOW TO WORK BETTER WITH SMALL EXPORTERS 9403030101 940303 TECHNOLOGY HEWLETT TO UNVEIL VOICEMAIL FEATURE FOR ITS COMPUTERS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO IS ADDING A WIRELESS VOICEMAIL FEATURE TO ITS LINE OF SOCALLED PALMTOP COMPUTERS STRENGTHENING ITS POSITION IN THE EMERGING INDUSTRY FOR HANDHELD ELECTRONIC COMMUNICATORS THE PALO ALTO CALIFBASED COMPUTER MAKER IS TO ANNOUNCE MONDAY ITS FEATURE CALLED HP STARLINK A WIRELESSMESSAGING SERVICE THAT TRANSMITS VOICE AND DATA MESSAGES AS WELL AS NEWS SPORTS AND FINANCIAL UPDATES TO HEWLETT'S LINE OF 100LX PALMTOP PERSONAL COMPUTERS THE SERVICE IS EXPECTED TO BE AVAILABLE APRIL 4 WITH A PRICE OF 229 FOR A REQUIRED PLUGIN WIRELESS CARD FROM MOTOROLA INC AND MONTHLY SUBSCRIPTIONS RANGING FROM 1995 FOR LOCAL COVERAGE TO 6295 FOR NATIONWIDE NEWS SPORTS AND OTHER ADDITIONAL SERVICES WILL COST MORE ANALYSTS SAY STARLINK PROVIDES AN ALLIMPORTANT COMMUNICATIONS LINK FOR BUSINESSPEOPLE ON THE GO AND THEREFORE POSITIONS IT WELL AGAINST COMPETING PRODUCTS SUCH AS APPLE COMPUTER INC'S NEWTON MESSAGEPAD WHILE MESSAGEPAD HAS A SIMILAR MESSAGING SYSTEM ANALYSTS SAY THE 100LX COMPETES BETTER ON PRICE MESSAGEPADS ARE CURRENTLY SELLING FOR AS LOW AS 570 WHILE COMPARABLE 100LXS ARE SELLING BELOW 500 IN SOME STORES OTHER RECENT HANDHELD ENTRANTS INCLUDE THE ZOOMER A PERSONAL ORGANIZER FROM CASIO COMPUTER CO AND TANDY CORP AND BELLSOUTH CORP'S SIMON A CELLULAR PHONE THAT IS DESIGNED TO STORE FILES AS WELL AS SEND FAXES AND ELECTRONIC MAIL THE COMPETITION WILL INTENSIFY THIS YEAR AS MOTOROLA IS ABOUT TO UNVEIL ENVOY A HANDHELD COMPUTER WHICH IS EXPECTED TO INCORPORATE A POWERFUL PROGRAM BY GENERAL MAGIC INC CALLED MAGIC CAP WHICH SIMPLIFIES MANY COMMUNICATIONS TASKS SONY CORP ALSO WILL BE COMING OUT WITH A HANDHELD COMPUTER SOON WITH STARLINK A PERSON IN SAY SAN FRANCISCO CAN DIAL UP A TOLLFREE NUMBER AND ASK AN OPERATOR AT A CENTRAL DISPATCH CENTER TO LEAVE A MESSAGE FOR A PERSON ON THE OPPOSITE COAST THE OPERATOR TRANSCRIBES THE MESSAGE INTO A COMPUTER AND IT IS SENT WIRELESSLY TO THE RECIPIENT'S PALMTOP WHICH ALERTS THE USER WITH A BEEPING NOISE THIS ENTIRE PROCESS TAKES BETWEEN TWO AND THREE MINUTES WHICH GIVES STARLINK VERY NEARLY THE SPEED OF A PAGER WITH THE ADDED BENEFIT OF MUCH LONGER MESSAGES MESSAGES CAN ALSO BE SENT VIA COMPUTER TRANSMISSIONS TO THE DISPATCH CENTER UNLIKE PAGERS WHICH CAN ONLY RECORD SHORT MESSAGES STARLINK CAN HANDLE UP TO TWO PARAGRAPHS ADDING FURTHER TO CONVENIENCE HEWLETT OFFICIALS SAY STARLINK MESSAGES CAN BE AUTOMATICALLY ENTERED ONTO AN ELECTRONIC CALENDAR IN THE PALMTOP 9403030100 940303 ECONOMY CLINTON CONSIDERS SELLING QUOTA RIGHTS FOR TEXTILE IMPORTS AS SOURCE OF FUNDS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS FLOATING A PROPOSAL TO SELL QUOTA RIGHTS FOR TEXTILE IMPORTS INTO THE US AS A WAY OF RECOVERING REVENUE LOST BY THE WORLDTRADE AGREEMENT THE QUOTA IDEA COULD REPLACE ANOTHER IDEA THAT THE ADMINISTRATION HAD CONSIDERED LAST WEEK SEEKING A WAIVER FROM THE DEFICITREDUCTION LAW WHICH REQUIRES NEW REVENUES OR SPENDING CUTS TO OFFSET LEGISLATION THAT WOULD WIDEN THE DEFICIT THE TEXTILE PLAN WHICH WOULD OVERHAUL THE CURRENT SYSTEM OF ALLOCATING IMPORT QUOTAS WOULD MOST LIKELY APPEASE LAWMAKERS WHO ARE WORRIED THE US WOULD HAVE TO RAISE TAXES TO COVER THE COST OF LOST TARIFFS FROM THE TRADE PACT THE AGREEMENT NEGOTIATED UNDER THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE WOULD ELIMINATE MANY OF THE WORLD'S TRADING BARRIERS BUT THE IDEA IS CERTAIN TO ANGER RETAIL IMPORTERS AND THEIR FRIENDS ON CAPITOL HILL US TRADE REPRESENTATIVE MICKEY KANTOR TOLD THE HOUSE FOREIGN AFFAIRS COMMITTEE THAT THE ADMINISTRATION IS GIVING THE QUOTAAUCTION PLAN SERIOUS CONSIDERATION AND ISN'T SEEKING A BUDGET WAIVER HE SAID THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET IS REVIEWING THE AUCTION PLAN THE WHITE HOUSE BUDGET OFFICE ESTIMATES THAT THE WORLDTRADE PACT WOULD REDUCE PROJECTED TARIFF RECEIPTS BY 139 BILLION OVER FIVE YEARS CLINTON AIDES CLAIM ABOUT 3 BILLION OF THAT WOULD BE OFFSET BY LOWERTHANPROJECTED AGRICULTURAL SUBSIDIES IN THE PAST ECONOMISTS HAVE ESTIMATED THAT SELLING US TEXTILE AND APPAREL QUOTAS COULD GENERATE AS MUCH AS 6 BILLION A YEAR MR KANTOR DIDN'T OFFER AN ESTIMATE YESTERDAY SUCH REVENUE WOULD MOST LIKELY COVER THE COST OF LOST TARIFFS FROM THE WORLDTRADE PACT AN AMOUNT THE US ESTIMATES COULD RUN BETWEEN 2 BILLION TO 25 BILLION ANNUALLY UNDER AN INTERNATIONAL PACT CALLED THE MULTIFIBRE ARRANGEMENT MOST DEVELOPED WESTERN NATIONS INCLUDING THE US AND THE EUROPEAN UNION IMPOSE TEXTILE QUOTAS ON GARMENTPRODUCING COUNTRIES AS A WAY OF RESTRICTING IMPORTS THAT PACT IS TO CONTINUE OVER THE NEXT 10 YEARS BUT WILL BE PHASED OUT DURING THAT PERIOD UNDER TERMS IN THE WORLDTRADE ACCORD THE TEXTILE QUOTAS ARE SET ON A BILATERAL BASIS THE EXPORTING COUNTRIES THEN ISSUE EXPORT LICENSES TO COMPANIES SHIPPING GOODS TO THE US THOSE ARE OFTEN AUCTIONED OFF AND COMPANIES IN SOME COUNTRIES CAN SELL THOSE LICENSES TO EACH OTHER IN A SECONDARY MARKET UNDER THE KIND OF QUOTAAUCTION SYSTEM THE CLINTON ADMINISTRATION IS CONSIDERING THE US WOULD SELL IMPORT LICENSES TO COMPANIES OR INDIVIDUALS SOMETHING IT CURRENTLY DOESN'T DO HOWEVER SOME OTHER COUNTRIES HAVE SIMILAR PLANS IN PLACE CRITICS CHARGE THAT THE SYSTEM WOULD BECOME TOO CUMBERSOME LAURA BAUGHMAN PRESIDENT OF THE TRADE PARTNERSHIP AN ECONOMIC CONSULTING FIRM THAT DOES WORK FOR THE NATIONAL RETAIL FEDERATION ARGUED THAT A US AUCTION OF IMPORT QUOTAS WOULD BE VERY DISRUPTIVE TO THE TEXTILE TRADE BECAUSE SHIPPERS WOULD BE CHARGED FEES FOR IMPORTING AND EXPORTING THEIR GOODS IN ADDITION MS BAUGHMAN SAYS MOST ESTIMATED BENEFITS TO THE US ARE A REAL EXAGGERATION IN HIS TESTIMONY MR KANTOR SAID HE DISCUSSED THE AUCTION IDEA IN A MEETING WITH BUDGET DIRECTOR LEON PANETTA MR KANTOR SAID THE FACT IS THAT THERE IS A MARKET IN TEXTILE QUOTAS AND IT'S A PRIVATE MARKET AND WE'RE DISCUSSING WHETHER OR NOT IT MIGHT BE IN THE BEST INTEREST OF OUR COUNTRY TO AUCTION OFF THOSE QUOTAS IN TRADE CIRCLES THE IDEA OF A TEXTILEAUCTION SYSTEM ISN'T A NEW ONE IT WAS PROPOSED DURING THE CRAFTING OF THE 1988 TRADE ACT BUT DIDN'T MAKE IT INTO THE FINAL DRAFT OF THE LEGISLATION IT COULD WIN POINTS WITH TEXTILESTATE LEGISLATORS WHO BELIEVE THE TEXTILE INDUSTRY WAS BURNED IN THE RECENT WORLDTRADE NEGOTIATIONS US TEXTILE MAKERS WANTED TO PHASE OUT THE MULTIFIBRE ARRANGEMENT OVER A LONGER PERIOD THAN THE 10 YEARS THAT WAS SETTLED UPON IN DISCUSSING THE QUOTA AUCTION MR KANTOR BACKED OFF FROM THE IDEA OF A BUDGET WAIVER WHICH WOULD REQUIRE APPROVAL BY CONGRESS WE ARE NOT SEEKING A WAIVER OF THOSE RULES MR KANTOR SAID WE'RE LOOKING FOR OFFSETS NOT REVENUE INCREASES IN ORDER TO MAKE UP FOR THE 139 BILLION ON ANOTHER TRADE FRONT MR KANTOR WAS CAGEY ABOUT THE ADMINISTRATION'S PLAN TO RENEW THE SOCALLED SUPER 301 TRADE PROVISION WHICH IS AIMED AT JAPAN MR KANTOR TESTIFIED THAT NO TIMING HAS BEEN DISCUSSED ADDING IN FACT NO FINAL DECISION HAS BEEN INDICATED EARLIER IN THE DAY PRESIDENT CLINTON INDICATED THE SAME THING BUT CONGRESSIONAL AND ADMINISTRATION OFFICIALS SAID THE US HAS DECIDED TO RENEW THE TRADE MEASURE THROUGH EXECUTIVE ORDER AND THE ANNOUNCEMENT COULD BE MADE AS EARLY AS TODAY SUPER 301 ALLOWS THE US TO UNILATERALLY IMPOSE SANCTIONS AGAINST IMPORTS FROM A COUNTRY CONSIDERED TO BE ENGAGING IN UNFAIR TRADING PRACTICES MR KANTOR ALSO SAID THAT SOUTH KOREA AND SINGAPORE HAVE EXPRESSED INTEREST IN JOINING THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH REDUCES TRADE BARRIERS AMONG THE US CANADA AND MEXICO OVER THE NEXT 15 YEARS THE ADMINISTRATION HAS DISCUSSED OPENING NAFTA TO OTHER COUNTRIES MOSTLY IN THE WESTERN HEMISPHERE ENTRY OF SOUTH KOREA AND SINGAPORE COULD STRAIN US RELATIONS WITH JAPAN BECAUSE IT WOULD MEAN TWO OF ITS BIG ASIAN RIVALS WOULD HAVE FREER ACCESS TO THE HUGE NORTH AMERICAN MARKET 9403030099 940303 BUSINESS BRIEF HYDRO QUEBEC CON EDISON ARE IN TALKS TO SCALE BACK ELECTRICITYEXPORT PACT HYDROQUEBEC AND CONSOLIDATED EDISON CO OF NEW YORK SAID THEY ARE NEGOTIATING TO SCALE BACK A CONTRACT UNDER WHICH QUEBEC WOULD EXPORT ELECTRICITY TO NEW YORK STATE FOR 20 YEARS STARTING IN 1999 THE CONTRACT HAD BEEN VALUED AT AN ESTIMATED 5 BILLION AS ORIGINALLY SIGNED IN 1990 THE VALUE OF THE REVISED CONTRACT IS UNCERTAIN UNLIKE THE 1990 ACCORD IT WOULDN'T INVOLVE FIXED ANNUAL PURCHASES BUT HYDROQUEBEC ACKNOWLEDGED THAT THE QUANTITY AND THE PRICE OF THE ENERGY TO BE DELIVERED WILL BE SUBSTANTIALLY LOWER THAN IN THE CURRENT CONTRACT REFLECTING CHANGED MARKET CONDITIONS THE ANNOUNCEMENT CAME AS S DAVID FREEMAN PRESIDENT OF THE NEW YORK POWER AUTHORITY TESTIFIED BEFORE A NEW YORK STATE ASSEMBLY COMMITTEE HEARING THAT HE WOULD RECOMMEND CANCELLATION OF THE CONTRACT AS ORIGINALLY SIGNED MR FREEMAN WHO TOOK OVER AS PRESIDENT ON TUESDAY SAID THE AGREEMENT NO LONGER MAKES ECONOMIC SENSE BECAUSE FUEL PRICES HAVE DROPPED AND THERE IS AN OVERSUPPLY OF POWER IN THE STATE UNDER AN EXISTING 800000KILOWATTCAPACITY CONTRACT WHICH RUNS THROUGH OCTOBER 1998 THE NEW YORK STATE POWER AUTHORITY HAS BEEN BUYING ENERGY FROM QUEBEC DURING THE SUMMER MONTHS AND DELIVERING IT TO CON EDISON OVER THE AUTHORITY'S TRANSMISSION FACILITIES BUT THE ARRANGEMENT DOESN'T REQUIRE FIXED ANNUAL PURCHASES OF ELECTRICITY BY CONTRAST THE CONTRACT THAT WAS TO TAKE EFFECT IN 1999 WOULD HAVE REQUIRED THE NEW YORK AUTHORITY TO BUY THREE BILLION KILOWATTHOURS OF ELECTRICITY A YEAR THE POWER AUTHORITY CON EDISON AND HYDROQUEBEC A UTILITY OWNED BY THE QUEBEC PROVINCIAL GOVERNMENT HAVE THE RIGHT TO TERMINATE THE CONTRACT BY THE END OF THIS YEAR WILLIAM A HARKINS VICE PRESIDENT OF CON EDISON TOLD THE STATE ASSEMBLY HEARING THAT THE PURCHASE OF SUMMER CAPACITY FROM QUEBEC HAS REDUCED THE COMPANY'S DEPENDENCE ON IMPORTED OIL AND CONTRIBUTED TO IMPROVED AIR QUALITY IN THE NEW YORK CITY AREA CON EDISON'S DEMAND FOR ELECTRICITY PEAKS IN THE SUMMER BECAUSE OF HEAVY AIR CONDITIONER USE CON EDISON NOW WANTS TO REVISE THE ARRANGEMENT BASED ON CURRENT MARKET CONDITIONS WHILE RETAINING THE BENEFITS OF THE PURCHASES MR HARKINS SAID HE SAID CON EDISON ANTICIPATES THAT NEGOTIATIONS WILL RESULT IN HYDROQUEBEC'S CONTINUING TO SUPPLY CON EDISON WITH 780000 KILOWATTS OF CAPACITY BEYOND 1999 THE NEW CONTRACT WOULD BE A CAPACITY CONTRACT HOWEVER AND WOULDN'T INCLUDE GUARANTEED ENERGY SALES 9403030098 940303 WHO'S NEWS UNIQUEST INC UNIQUEST INC JACKSONVILLE FLA KEVIN P MCCABE 51 YEARS OLD HAS BEEN NAMED CHIEF FINANCIAL OFFICER FOR THIS PROVIDER OF INTEGRATED SOFTWARE APPLICATIONS SYSTEMS BEFORE JOINING UNIQUEST MR MCCABE WAS VICE PRESIDENT CORPORATE CONTROLLER AND CHIEF ACCOUNTING OFFICER AT DELL COMPUTER CORP 9403030097 940303 INTERNATIONAL HONG KONG DOESN'T REST SO EASY ON ITS 195 BILLION NEST EGG BUDGET SURPLUS HAS TAXPAYERS QUESTIONING FISCAL POLICY OFFICIALS LOOKING TO SPEND BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG IT'S BUDGET TIME AGAIN AND LIKE MANY GOVERNMENTS THE ADMINISTRATION OF THIS BRITISH COLONY IS FACING AN EMBARRASSING IMBALANCE BUT WHILE THE US CONGRESS STAYS UP NIGHTS FAILING TO CLEAN UP A 45 TRILLION REDINK SPLOTCH HONG KONG OFFICIALS SUFFER A MORE ENVIABLE PLIGHT HOW TO CONTAIN PESKY PERENNIAL SURPLUSES YESTERDAY FINANCIAL SECRETARY SIR HAMISH MACLEOD ADMITTED THAT HIS PROJECTIONS A YEAR AGO OF A 440 MILLION DEFICIT IN THE FISCAL YEAR ENDING MARCH 31 WERE TOO CAUTIOUS INSTEAD HE SAID THE GOVERNMENT WILL HAVE CHALKED UP A 195 BILLION SURPLUS FOR THE YEAR UNLIKE MANY OTHER SOCIETIES BOTH ASIAN AND WESTERN WE HAVE FOUND THE RIGHT BUDGETARY BALANCE MR MACLEOD SAID THE CASH IN THE COLONY'S COFFERS INCLUDING MONEY GENERATED BY LAND SALES OR SET ASIDE FOR MONETARY MANAGEMENT HAS SWELLED TO 40 BILLION ANALYSTS ESTIMATE ABOUT THE SAME AS BRITAIN'S RESERVES THAT'S ENOUGH TO BUY EACH OF THE 58 MILLION PEOPLE WHO LIVE IN THE COLONY A FIRSTCLASS ROUNDTRIP AIR TICKET TO LONDON AND COVER LIMOUSINES AT BOTH ENDS BUT FAT SURPLUSES AND HUGE RESERVES INSPIRE MORE WORRY THAN PRIDE MR MACLEOD FRETTED IN THE PAST THAT THE GOVERNMENT WASN'T SPENDING ENOUGH ON INFRASTRUCTURE THIS YEAR HE SAID URGENT STEPS TAKEN TO LIFT SPENDING WERE PRODUCING A HEARTENING IMPROVEMENT NOT ENOUGH TO PLEASE EVERYONE I DON'T THINK THE GOVERNMENT HAS A RIGHT TO COLLECT MONEY IF IT DOESN'T HAVE A PURPOSE COMPLAINED ROD HOUNGLEE SENIOR TAX PARTNER AT PRICEWATERHOUSE THE TAXPAYER SHOULDN'T HAVE TO PAY FOR A SURPLUS TAX SPECIALISTS SAY HONG KONG'S FISCAL FORTUNES ARE TIED TO ITS HIGH GROWTH THE ECONOMY GREW 55 IN THE LAST CALENDAR YEAR ITS 27TH STRAIGHT YEAR OF EXPANSION AND THRIVING TRADE WITH CHINA THERE THE ECONOMY RACED ALONG AT A GROWTH RATE OF 13 LAST YEAR THE GOVERNMENT'S APPROACH TO FISCAL POLICY IS A CONSERVATIVE'S DREAM IT KEEPS SPENDING AND INCOME TAXES LOW THE TOP PERSONAL TAX RATE IS 15 AND FEWER THAN 2 OF RESIDENTS MUST PAY THAT MUCH THE FISCAL YEAR JUST ENDING MAY HAVE BEEN EXCEPTIONAL THOUGH STOCK AND PROPERTY TRANSACTIONS ON WHICH THE COLONY COLLECTS STAMP DUTY BOOSTED REVENUES AS THE STOCK MARKET'S HANG SENG INDEX SOARED 116 AND LAND PRICES SOARED AND WITH PROSPERITY SPREADING HIGH SIN TAXES KICKED IN MR MACLEOD EFFECTIVELY LOWERED THE DUTY ON MOST LIQUOR YESTERDAY TO A FLAT 100 THOUGH THE CIGARETTE TAX REMAINS AT A STEEP 2 A PACK THE GOVERNMENT'S GOLDEN TOUCH EVEN REACHED ITS PLANS TO BUILD A MASSIVE NEW AIRPORT AT AN ESTIMATED COST OF NEARLY 19 BILLION A POLITICAL DISPUTE WITH CHINA KEPT SOME BUDGETED MONEY FROM BEING SPENT AND BECAUSE THE HONG KONG GOVERNMENT IS THE ONLY CLIENT IN THE WORLD FOR SOME OF THE HUGE DREDGERS AND EQUIPMENT USED ON SUCH PROJECTS THE COLONY HAS BEEN ABLE TO NEGOTIATE LOWER FEES FOR THEIR USE SO THE GOVERNMENT IS LOOKING FOR NEW WAYS TO SPEND ITS MONEY NEARLY HALF OF PUBLIC SPENDING IN HONG KONG GOES TO HOUSING AND SOCIAL WELFARE MR MACLEOD WANTS TO BOOST OUTLAYS FOR HEALTH WELFARE EDUCATION AND THE ENVIRONMENT THE INCREASE IN SPENDING MR MACLEOD SAID SHOULD ALLEVIATE HONG KONG'S FISCAL IMBALANCE IN THE COMING 12 MONTHS THE SURPLUS WILL NARROW TO SLIGHTLY LESS THAN 1 BILLION 9403030096 940303 GOULD LAW PROFESSOR CONFIRMED BY SENATE AS LABORBOARD CHIEF WASHINGTON THE SENATE BY A 5838 VOTE CONFIRMED STANFORD UNIVERSITY LAW PROFESSOR WILLIAM GOULD IV AS CHAIRMAN OF THE NATIONAL LABOR RELATIONS BOARD THE SENATE THEN CONFIRMED BY VOICE VOTE TWO OTHER BOARD MEMBERS PHILADELPHIA LAWYER MARGARET BROWNING AND WASHINGTON LAWYER CHARLES COHEN AS WELL AS HOUSE STAFFER FREDERICK FEINSTEIN AS THE LABOR BOARD'S GENERAL COUNSEL THE THREE NEW MEMBERS GIVE THE CLINTON ADMINISTRATION A MAJORITY ON THE BOARD WHICH IS THE ARBITER OF DISPUTES BETWEEN UNIONS AND COMPANIES AND WHICH HELPS DETERMINE GROUND RULES IN SUCH AREAS AS THE LEGALITY OF WORKERMANAGEMENT TEAMS FIVE REPUBLICANS JOINED 53 DEMOCRATS IN BACKING MR GOULD WHO HAS HAD AN EXTENSIVE CAREER AS A UNION LAWYER MANAGEMENT LAWYER AND ARBITRATOR THE VOTE ENDS ONE OF THE MOST CONTENTIOUS NOMINATIONS IN THE CLINTON ADMINISTRATION'S 13MONTH TENURE REPUBLICANS BLOCKED THE NOMINATION FOR MONTHS BASED ON MR GOULD'S WRITINGS WHICH BACKED SUCH PROLABOR AIMS AS EASIER UNION ORGANIZING BUT MR GOULD VOWED AT HIS CONFIRMATION HEARING THAT HE WOULDN'T LEAN IN FAVOR OF UNIONS OR MANAGEMENT AS CHAIRMAN 9403030095 940303 FOREIGN EXCHANGE DOLLAR DECLINES AGAINST MARK ON SURGE IN GROWTH OF GERMANY'S MONEY SUPPLY BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DROPPED AGAINST THE MARK YESTERDAY ON NEWS OF AN UNEXPECTED SURGE IN GERMANY'S MONEYSUPPLY GROWTH WHICH APPEARED TO ELIMINATE ANY CHANCE OF AN EARLY INTERESTRATE CUT BY THE BUNDESBANK BUT AFTER INITIALLY PLUNGING TO A NEW 1994 LOW THE DOLLAR EDGED HIGHER ON BARGAINHUNTING AND ON SPECULATION THAT THE GERMAN CENTRAL BANK MIGHT STILL CUT RATES IN ORDER TO REASSURE DOMESTIC BOND AND EQUITY MARKETS THEY UNDERWENT A BLOODLETTING FOLLOWING THE MONEYSUPPLY REPORT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17040 MARKS DOWN FROM 17095 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10410 YEN DOWN FROM 10460 YEN STERLING WAS TRADING AT 14972 UP FROM 14895 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10395 YEN AND AT 17073 MARKS THE BUNDESBANK SAID THE M3 MONEY SUPPLY A BROAD MEASURE OF CASH IN CIRCULATION PLUS SHORTTERM DEPOSITS GREW AT A SEASONALLY ADJUSTED ANNUAL RATE OF 206 THROUGH JANUARY UNDER NORMAL CIRCUMSTANCES M3 IS THE BUNDESBANK'S FAVORED LEADING INDICATOR OF POTENTIAL INFLATION THE LATEST GROWTH RATE WAS FAR HIGHER THAN EVEN THE MOST PESSIMISTIC ESTIMATES AND SENT GERMAN AND OTHER EUROPEAN SHARE AND BOND PRICES REELING THE DOLLAR ALSO SPUN LOWER ON SPECULATION THAT THE BUNDESBANK WAS NOW IN NO POSITION TO CONTINUE ITS RECENT POLICY OF CAUTIOUSLY EASING KEY INTEREST RATES INDEED THE US CURRENCY HIT AN INTRADAY LOW OF 16933 MARKS SOON AFTER STATEMENTS BY ONE CENTRAL BANK OFFICIAL WHO CALLED THE M3 NEWS ALARMING THE DOLLAR HADN'T TRADED AS LOW AS 16933 MARKS SINCE DEC 23 WHEN IT WAS AT 16925 MARKS THERE IS NO ROOM FOR FURTHER OFFICIAL INTERESTRATE REDUCTION ADDED GUNTRAM PALM A MEMBER OF THE BUNDESBANK'S POLICYMAKING CENTRAL COUNCIL WHICH IS SET TO MEET TODAY TO DISCUSS INTERESTRATE POLICY THE DOLLAR RECOVERED A BIT OF GROUND AS SOME TRADERS SPECULATED THAT THE BUNDESBANK MIGHT EASE RATES HOWEVER RELUCTANTLY IN ORDER TO REASSURE THE GERMAN BOND MARKET INDEED THE MARKET WAS DIVIDED ON JUST HOW THE MONEYSUPPLY SITUATION WOULD ULTIMATELY AFFECT BUNDESBANK POLICY SAID BELAL KHAN SENIOR CUSTOMER DEALER AT THE BANK OF TOKYO IN NEW YORK MONEYSUPPLY GROWTH OF 206 IS OUTRAGEOUSLY HIGH AND CUTTING RATES IS IRRESPONSIBLE MR KHAN SAID ADDING AT THE SAME TIME NOT CUTTING RATES IS EQUALLY IRRESPONSIBLE BECAUSE OF WHAT IT'S DOING TO THEIR BOND MARKET ANALYSTS ALSO NOTED THAT THE CENTRAL BANK HAD TRIED TO PLAY DOWN THE SHORTTERM SIGNIFICANCE OF THE JANUARY DATA IN THE DAYS PRIOR TO ITS RELEASE INDEED DURING THE PAST SEVERAL DAYS BUNDESBANK OFFICIALS WERE QUICK TO DESCRIBE THE JANUARY NUMBERS AS DISTORTED AND UNRELIABLE ANALYSTS NOTED THAT THE JANUARY MONEYSUPPLY FIGURE WAS INFLATED BY A SERIES OF SPECIAL FACTORS INCLUDING CASH THAT MANY GERMANS REPATRIATED FROM OFFSHORE ACCOUNTS AS A RESULT OF A RECENT CHANGE IN TAX LAWS BUT MANY ANALYSTS SAID THE MAGNITUDE OF THE MONEYSUPPLY EXPANSION WAS STILL WORRISOME THERE WAS A LACK OF A REAL EXPLANATION AS TO WHY M3 WAS SO FAR OUTSIDE OF EXPECTATIONS SAID JACK GRIFFIN ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK ANY WAY YOU CUT IT IT'S STILL A VERY BIG NUMBER HE ADDED BANK OF TOKYO'S MR KHAN NOTED THAT BARGAINHUNTING WAS ALSO A FACTOR IN THE DOLLAR'S PARTIAL RECOVERY FROM INTRADAY LOWS THERE WAS INTEREST AMONG US CORPORATIONS TO BUY A DOLLAR THAT IS UNDERVALUED AT BELOW 17000 MARKS HE SAID 9403030094 940303 ECONOMY EUROPE SHIFTS TO SOFTER TRADE APPROACH WITH JAPAN WHILE US GETS TOUGHER BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHILE THE CLINTON ADMINISTRATION WAS BATTLING WITH JAPANESE OFFICIALS IN WASHINGTON LAST MONTH THE EUROPEAN UNION'S TRADE MINISTER SIR LEON BRITTAN WAS IN BRUSSELS DOING JUST THE OPPOSITE HE INTRODUCED A GATEWAY TO JAPAN EXPORT PROMOTION IN CONCERT WITH TOKYO SIR LEON CRITICIZING THE US APPROACH AS A DEMONSTRATION OF MANAGED TRADE ALSO RENEWED AN EU PROGRAM TO TEACH JAPANESE LANGUAGE AND BUSINESS TECHNIQUES TO EUROPEANS A WEEK EARLIER THE EU TOSSED OUT THOUSANDS OF NATIONAL QUOTAS THAT HAD PROTECTED EUROPEAN COUNTRIES THE DEVELOPMENTS UNDERSCORE A SHIFT ON BOTH SIDES OF THE ATLANTIC THE US SELFSTYLED FREE TRADER APPEARS TO HAVE GROWN FRUSTRATED WITH THAT APPROACH AND IS LEANING TOWARD PROTECTIONISM THE EUROPEANS TRADITIONALLY UNREPENTANT PROTECTIONISTS ARE NOW NURTURING A COZY ALLIANCE WITH JAPAN SHEDDING TRADE BARRIERS AND ENCOURAGING JAPANESE INVESTMENT THE REVERSAL POSES A HUGE RISK FOR EUROPE MANY EUROPEAN COUNTRIES HAD LIMITED JAPANESE INTRUSION FOR YEARS WITH THE VERY PROTECTIONIST POLICIES THEY ARE NOW ABANDONING ONLY TO ADOPT A NICEGUY APPROACH THAT ALREADY FAILED FOR THE US OUR MARKET WAS CLOSED TO JAPANESE EXPORTS FOR MANY MANY PRODUCTS SAYS MARCO PANNACCIULLI A TRADE POLICY SPECIALIST WITH CONFINDUSTRIA THE ITALIAN MANUFACTURERS' ASSOCIATION AS A RESULT ITALY IN 1991 CLAIMED ONLY 12 OF TOTAL JAPANESE EXPORTS THE LOWEST LEVEL IN THE EU GERMANY HAD 66 THE UK 35 AND THE US 30 BUT WITH THE EU'S OPENING OF MARKETS ITALY HAS SEEN A SLOW BUT STEADY INCREASE IN JAPANESE IMPORTS THOUGH CONFINDUSTRIA SUPPORTS THE EU'S MOVES MR PANNACCIULLI WARNS THIS COULD CREATE MANY PROBLEMS WE CANNOT ALLOW JAPANESE COMPANIES TO DESTROY IMPORTANT SECTORS OF EUROPEAN INDUSTRY WHILE EUROPE'S NEW TACK HAS HELPED IT TO AVOID THE ACRIMONY NOW BREWING BETWEEN THE US AND JAPAN IT'S NOT CLEAR WHICH STRATEGY IF EITHER WILL WORK BEST EUROPE'S TRADE DEFICIT WITH JAPAN REMAINS LOWER AN ESTIMATED 30 BILLION IN 1993 COMPARED WITH 593 BILLION FOR THE US SINCE 1980 THE US TRADE IMBALANCE HAS BALLOONED MORE THAN SIXFOLD ABOUT DOUBLE THE RATE OF INCREASE IN THE EU'S DEFICIT TAKASHI OSAWA NISSAN MOTOR CORP'S MANAGER OF GOVERNMENT AFFAIRS IN BRUSSELS SAYS THE SOFTER APPROACH OF THE EU MEANS EUROPEANS FARE MUCH BETTER IN JAPAN THAN AMERICANS THE US'S TOUGH LINE HE SAYS TURNS JAPANESE CONSUMERS AGAINST US GOODS ON THE OTHER HAND EUROPE'S DEFICIT OF 30 BILLION UP SHARPLY IN RECENT YEARS ISN'T ANYTHING TO BRAG ABOUT AND JAPANESE INVESTMENT IN EUROPE HAS SURGED IN RECENT YEARS SOME BELIEVE THE EU WILL BE FORCED TO RETURN TO A HARDER LINE IN THE FUTURE AS IT FEELS THE FULL EFFECT OF JAPAN INC'S EXPORTS AND DIRECT INVESTMENT BOTH HAVE BEEN FAR BELOW THE LEVEL IN THE US LLEW AVISS A FUJITSU LTD OFFICIAL IN ENGLAND ARGUES THAT EUROPE CAN AFFORD TO BE LAID BACK BECAUSE IT ALREADY LOST ITS HIGHTECH MANUFACTURING EDGE TO THE US AND JAPAN AT THE SAME TIME EUROPE RISKS GETTING SQUEEZED OUT OF THE JAPANESE MARKET IF THE US WINS A GUARANTEED MARKET SHARE JAPAN SHIED AWAY FROM EUROPE IN THE PAST BECAUSE IT WAS A FRACTURED AND HIGHLY PROTECTED MARKET BEFORE THE EU FORMERLY THE EUROPEAN COMMUNITY HAD A COMMON TRADE POLICY SOUTHERN EUROPEAN COUNTRIES SUCH AS FRANCE AND ITALY KEPT THE JAPANESE AT BAY BY USING SOME OF THE ASIAN COUNTRY'S OWN TACTICS QUOTAS AND INVISIBLE BARRIERS ITALY LIMITED JAPANESE AUTO IMPORTS TO ONLY ABOUT 3000 A YEAR WHILE FRANCE UNOFFICIALLY LIMITED JAPAN TO 3 OF THE MARKET IN ONE CASE IN 1982 FRANCE TRIED TO THWART VCR IMPORTS FROM JAPAN BY MAKING THEM CLEAR CUSTOMS IN THE INLAND TOWN OF POITIERS OF COURSE THE EUROPEANS HAVEN'T TOTALLY ABANDONED THEIR HEAVYHANDED TRADE POLICIES INDEED VINCENT CABLE HEAD OF THE ROYAL INSTITUTE OF INTERNATIONAL AFFAIRS ECONOMICS PROGRAM WARNS THAT EUROPE REMAINS APPALLINGLY PROTECTIONIST IN SOME AREAS AND ON BALANCE IS A MORE DIFFICULT MARKET THAN THE US FOR JAPANESE IMPORTS JAPAN WAS THE EU'S FAVORITE TARGET FOR ANTIDUMPING AND ANTISUBSIDY CASES BETWEEN 1987 AND 1991 WHEN DUTIES WERE SLAPPED ON JAPANESE BALL BEARINGS FAX PAPER DISPOSABLE LIGHTERS HALOGEN LAMPS CD PLAYERS AND OTHER GOODS EVEN NOW SOME EU MEMBERS ARE REQUESTING LIMITS ON CARS PRODUCED IN EUROPE BY JAPANESE COMPANIES IN RECENT DAYS HONDA MOTOR CO HAS BEEN FUMING ABOUT THE SALE OF ROVER GROUP IN WHICH HONDA HAS A MINORITY STAKE TO BAYERISCHE MOTOREN WERKE AG AGAINST HONDA'S WISHES BUT THE EU HAS CLEARLY ADOPTED A SOFTER JAPAN POLICY THAN ITS MORE STRIDENT MEMBERS ONCE DID IN PART THIS IS BECAUSE OF THE DOMINANCE OF NORTHERN COUNTRIES SUCH AS GERMANY AND BRITAIN WHICH HAVE TAKEN MORE OF A FREETRADE STANCE OVER MORE PROTECTIONIST ITALY AND FRANCE ON FEB 8 THE EU DECLARED IT HAD TOSSED OUT 6417 DIFFERENT NATIONAL QUOTAS REPLACING THEM WITH A HANDFUL OF EUROPEWIDE QUOTAS THAT DR CABLE CALLS LESS RESTRICTIVE A EUROPEWIDE QUOTA FOR CARS LAST YEAR SIMILAR TO THE VOLUNTARY RESTRAINT AGREEMENTS IN THE US ALLOWED A GENEROUS 11 MILLION JAPANESE VEHICLES MORE THAN JAPANESE PRODUCERS COULD ACTUALLY SELL JAPAN AND EUROPE HAVE ALSO SET UP A JOINT TRADE ASSESSMENT MECHANISM TO MONITOR THEIR BALANCE OF PAYMENTS FOR BETTER OR WORSE THE EUROPEANS' NEW OPENNESS MAY FOSTER LINKS WITH JAPAN THAT WILL SOON RIVAL THE USJAPAN TIES SINCE THE 1980S EUROPEANS HAVE BEEN IN THE PROCESS OF REDISCOVERING JAPAN SAYS NORIKO HAMA OF THE MITSUBISHI RESEARCH INSTITUTE IN LONDON MS HAMA SAYS THE EUROPEANS COULD USE THE SHIFT AS A WEDGE TO PREVENT A PACIFIC ALLIANCE THE EUROPEANS WOULD CLEARLY LIKE TO EXPLOIT THIS RELATIONSHIP SHE SAYS JAPANESE INVESTMENT HAS SURGED IN EUROPE SINCE THE LATE 1980S AND NOW ACCOUNTS FOR 207 OF JAPAN'S FOREIGN INVESTMENT JAPAN'S COMPANIES INVESTED SOME 13 BILLION IN EUROPE BETWEEN 1990 AND 1992 ACCORDING TO THE JAPAN EXTERNAL TRADE ORGANIZATION WITH HALF OF THE INVESTMENT GOING TO BRITAIN THERE ARE NOW 198 JAPANESEOWNED COMPANIES IN THAT COUNTRY PART OF THE REASON FOR EUROPE'S CALM RELATIONS WITH JAPAN IS TRADITION WHILE THE US AND JAPAN HAVE VIEWED EACH OTHER AS MAIN TRADING PARTNERS THE EUROPEANS HAVE TRADED MOSTLY AMONG THEMSELVES SOME 60 OF EU TRADE IS INTRAEU AND ONLY 10 OF EXTERNAL TRADE IS WITH JAPAN JAPANESE INVESTMENT IS SEEN MORE AS A SOURCE OF TECHNOLOGY AND EMPLOYMENT THAN A POLITICAL THREAT JAPAN IS A RELATIVELY SMALL TRADING PARTNER AND IS NOT SEEN AS PARTICULARLY AS A THREAT SAYS DR CABLE OF THE ROYAL INSTITUTE EUROPEANS PARTICULARLY THE BRITISH DUTCH DANES AND GERMANS HAVE TAKEN THE VIEW THAT THERE ARE POSITIVE BENEFITS FROM OUR RELATION WITH JAPAN HE SAYS 9403030093 940303 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HEMASURE INC A UNIT OF SEPRACOR INC AN INITIAL OFFERING OF 23 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 345000 VIA D BLECH & CO PHYCOR INC AN OFFERING OF 2150000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR UP TO 322500 SHARES VIA ALEX BROWN & SONS INC ROBERTSON STEPHENS & CO AND EQUITABLE SECURITIES CORP RECOTON CORP AN OFFERING OF 16 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES KIDDER PEABODY & CO AND FURMAN SELZ INC STIRLING PROPERTIES INC AN INITIAL PUBLIC OFFERING OF SEVEN MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 1050000 SHARES VIA MERRILL LYNCH & CO 9403030092 940303 OLD KENT COMPLETES ACQUISITION GRAND RAPIDS MICH OLD KENT FINANCIAL CORP SAID IT HAS COMPLETED THE ACQUISITION OF PRINCETON FINANCIAL CORP OF ORLANDO FLA 9403030091 940303 MARKETING & MEDIA MILLER CANCELS BEER ADS AS AGENCY TAKES ICY VIEW NEW YORK MILLER BREWING CO HAS CANCELED TELEVISION AND PRINT ADVERTISEMENTS IN THE WAKE OF A GOVERNMENT INVESTIGATION INTO WHETHER MILLER WAS ILLEGALLY MARKETING ITS ICE BEER ON THE BASIS OF ITS ALCOHOL CONTENT MOST ICE BEER WHICH IS BREWED AT TEMPERATURES SO COLD THAT ICE CRYSTALS FORM IS ABOUT 55 ALCOHOL BY VOLUME COMPARED WITH 45 TO 5 FOR REGULAR AND LIGHT BEERS IT IS AGAINST FEDERAL LAW TO TRUMPET A BEER'S ALCOHOLIC CONTENT IN ADVERTISING OFFICIALS AT THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS WERE SAID TO BE TROUBLED BY A COMMERCIAL FOR MILLER'S MOLSON ICE THAT PANNED A LABEL DISPLAYING A 56 ALCOHOLIC CONTENT MILLER A UNIT OF PHILIP MORRIS COS SAID THE BATF HAD NOT ORDERED THE COMPANY TO DISCONTINUE THE ADS TO AVOID ANY PERCEPTION THAT WE ARE MARKETING OUR PRODUCTS ON THE BASIS OF ALCOHOL STRENGTH WE HAVE DECIDED NOT TO FEATURE THE APPROVED GOVERNMENT LABEL IN OUR ADVERTISING SAID A MILLER SPOKESWOMAN SEPARATELY THE STATE OF ALABAMA SAID IT HAD ORDERED MILLER AND OTHER BREWERS TO STOP SELLING ICE BEER IN ORDER TO COMPLY WITH A STATE LAW THAT DOESN'T ALLOW BEER WITH AN ALCOHOL CONTENT OF MORE THAN 5 TO BE SOLD MILLER SAID IT WILL REBREW THE BEER AT THAT LEVEL SO IT CAN BE SOLD IN THAT STATE 9403030090 940303 ABREAST OF THE MARKET INDUSTRIALS REBOUND RISING 2251 AFTER EARLY ROUT AS BONDS STABILIZE BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE REBOUNDED SMARTLY AS BOND PRICES STABILIZED TURNING A MORNING ROUT INTO AN AFTERNOON RALLY AFTER PLUNGING MORE THAN 50 POINTS SHORTLY FOLLOWING THE OPENING BELL THE INDUSTRIAL AVERAGE GAINED 2251 POINTS TO 383174 STANDARD & POOR'S 500STOCK INDEX EDGED UP 037 TO 46481 AND THE NASDAQ COMPOSITE INDEX SLID 517 TO 78347 SETTING THE STAGE FOR THE MARKET'S RECOVERY WAS A REPORT THAT PRESIDENT CLINTON ISN'T MOVING AS QUICKLY AS SOME EXPECTED ON RENEWING A TOUGH TRADE MEASURE AGAINST JAPAN IF NAFTA AND GATT WERE GOOD FOR THE STOCK MARKET THEN A TRADE WAR WITH JAPAN WOULD BE BAD SAID DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS VOLUME ON THE NEW YORK STOCK EXCHANGE SWELLED TO 361130000 SHARES THE HEAVIEST DAY OF TRADING SINCE THE INDUSTRIAL AVERAGE DROPPED MORE THAN 96 POINTS ON FEB 4 FROM 300030000 SHARES TUESDAY DECLINING ISSUES OUTPACED ADVANCERS 1404 TO 788 STOCK PRICES PLUNGED SHORTLY AFTER THE OPENING BELL AS A SHARP DECLINE IN THE US BOND PRICES AND A MELTDOWN IN OVERSEAS DEBT MARKETS DROVE THE INDUSTRIAL AVERAGE MORE THAN 50 POINTS LOWER THE SELLING WAS SO FIERCE THAT THE NEW YORK STOCK EXCHANGE ACTIVATED ITS 50POINT COLLAR WHICH CURTAILS INDEX ARBITRAGE THE MOST POPULAR TYPE OF PROGRAM TRADING WHENEVER THE INDUSTRIAL AVERAGE DROPS OR RISES BY 50 POINTS BUT BY MIDDAY AS MR CLINTON'S COMMENTS FILTERED ACROSS THE NEWSWIRES STOCK AND BOND PRICES STARTED TO STABILIZE LEADING THE REBOUND WERE SOME OF THE STOCK MARKET'S USUAL DEFENSIVE PLAYS LIKE OIL AND UTILITY SHARES ALSO STRONG WERE STOCKS OF AUTO AND SEMICONDUCTOR COMPANIES WHICH ARE LOCKED IN A FIERCE COMPETITIVE BATTLE WITH JAPANESE COMPANIES GENERAL MOTORS GAINED 2 3/8 TO 60 1/2 CHRYSLER 1 TO 57 3/8 FORD 1 5/8 TO 63 7/8 AND MOTOROLA 2 5/8 TO 106 DESPITE THE STUNNING REBOUND MANY ANALYSTS WERE HESITANT TO DECLARE THE SELLING OVER IT'S AN IMPRESSIVE COMEBACK SAID THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY BUT I THINK IT'S A LITTLE EARLY TO CALL IT THE END OF THE CORRECTION EVEN THE EVEREBULLIENT ELAINE GARZARELLI WAS SOUNDING A LITTLE MORE CAUTIOUS YESTERDAY WHILE THE LEHMAN BROTHERS STOCK STRATEGIST STILL THINKS THE BULL MARKET IN STOCKS IS INTACT SHE WAS ADVISING CLIENTS YESTERDAY TO UNLOAD SOME STOCKS DURING THE NEXT RALLY FEARING THAT THE SUBSEQUENT SURGE IN STOCK PRICES WILL BE FOLLOWED BY A SHARPER MARKET CORRECTION THAT WILL TAKE PRICES 10 TO 15 LOWER I DIDN'T EXPECT INTEREST RATES TO RISE THIS FAST SHE SAID BUT I AM TELLING CLIENTS TO LIGHTEN UP A BIT IF THE MARKET RALLIES AND THE THREEMONTH TREASURY BILL RATE REMAINS HIGH SINGLECOUNTRY FUNDS THAT TRADE PUBLICLY TOOK A WILD RIDE YESTERDAY REELING FROM THE SWINGS IN THE US AND FOREIGN STOCK MARKETS MEXICO FUND CHALKED UP A GAIN OF 5/8 TO 34 1/4 AFTER TRADING AS LOW AS 31 3/4 YESTERDAY CHILE FUND FELL TO 43 1/4 BUT FINISHED THE DAY UP 1 TO 47 1/2 ASIA PACIFIC FUND WHICH INVESTS IN SEVERAL PACIFIC RIM COUNTRIES LOST 3/4 TO 19 5/8 AFTER DROPPING AS LOW AS 18 5/8 AND SPAIN FUND EASED 1/4 TO 10 AFTER FALLING AS LOW AS 9 3/8 RUMORS THAT BANKERS TRUST HAD INCURRED HEAVY TRADING LOSSES IN RECENT WEEKS SENT THE COMMERCIAL BANK'S STOCK INTO A TAILSPIN AND CREATED SUCH A WAVE OF SELL ORDERS ON THE NEW YORK STOCK EXCHANGE THAT THE STOCK'S OPENING WAS DELAYED BANKERS TRUST TUMBLED 2 1/4 TO 78 1/2 ON NEARLY FIVE TIMES ITS AVERAGE DAILY VOLUME DESPITE CLAIMS BY THE BANK THAT IT HAS BEEN PROFITABLE SO FAR THIS YEAR JP MORGAN ANOTHER BIG BANK THAT DEPENDS HEAVILY ON TRADING PROFITS SLID 1 1/4 TO 66 1/4 THE WEAKNESS SPILLED OVER INTO OTHER BANKING ISSUES CITICORP DROPPED 3/4 TO 39 5/8 AND NATIONSBANK WAS OFF 7/8 TO 47 7/8 BIG GAINERS INCLUDED ALUMINUM CO OF AMERICA WHICH JUMPED 2 TO 76 1/2 CATERPILLAR WHICH ROSE 3 1/8 TO 112 AND EASTMAN KODAK WHICH CLIMBED 1 1/4 TO 44 1/4 AST RESEARCH SKIDDED 5 1/4 OR 183 TO 23 1/2 ON NASDAQ AFTER THE IRVINE CALIF PERSONAL COMPUTER MAKER CONFIRMED SPECULATION THAT ITS EARNINGS FOR THE THIRD QUARTER WHICH ENDS THIS MONTH WILL BE DEPRESSED BY WEAKERTHANEXPECTED SALES ANALYSTS AT SOME BROKERAGE FIRMS REMOVED THE STOCK FROM THEIR BUY LISTS AST DROPPED 2 3/4 TUESDAY SHARES OF OTHER PERSONAL COMPUTER MAKERS ALSO SLUMPED IN REACTION TO THE AST NEWS COMPAQ COMPUTER DROPPED 2 1/4 TO 94 3/8 WHILE ON NASDAQ APPLE COMPUTER EASED 5/8 TO 35 5/8 AND GATEWAY 2000 SLIPPED 1/4 TO 23 1/4 DELL COMPUTER WAS UNCHANGED AT 24 7/8 PARAMOUNT COMMUNICATIONS ENDED AT 46 1/2 ON ITS FIRST DAY OF TRADING ON A WHEN DISTRIBUTED BASIS THE FIRST STEP OF VIACOM'S 10 BILLION PURCHASE OF THE NEW YORK MEDIA COMPANY A 107ASHARE TENDER OFFER CLOSED TUESDAY THE WHENDISTRIBUTED SHARES REPRESENT THE VALUE OF SECURITIES THAT WILL BE ISSUED IN THE SECOND HALF OF THE TRANSACTION PARAMOUNT'S OLD COMMON TUMBLED 27 3/4 TO 48 1/4 HOLDERS OF THOSE SHARES ARE NO LONGER ENTITLED TO THE CASH PORTION OF THE TRANSACTION ANALYSTS SAID MOST INVESTORS THOUGH TENDERED BEFORE THE DEADLINE VIACOM'S CLASS B SHARES DROPPED 3/4 TO 28 ON THE AMERICAN STOCK EXCHANGE CML GROUP LOST 1 TO 20 EVEN THOUGH THE ACTON MASS COMPANY WHICH MAKES NORDICTRACK EXERCISE EQUIPMENT REPORTED SLIGHTLY HIGHERTHANEXPECTED EARNINGS IT HAD A PROFIT OF 74 CENTS A SHARE IN THE SECOND QUARTER ENDED JAN 29 COMPARED WITH 63 CENTS A SHARE A YEAR EARLIER THE MEAN FORECAST OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM PUT THE LATEST QUARTER'S PROFIT AT 73 CENTS A SHARE SEMICONDUCTOR STOCKS WERE MOSTLY HIGHER MICRON TECHNOLOGY GAINED 3 7/8 TO 75 1/4 AND TEXAS INSTRUMENTS INCREASED 1 3/8 TO 83 ON NASDAQ THOUGH INTEL WAS OFF 1/8 TO 66 5/8 AND APPLIED MATERIALS SKIDDED 2 3/4 TO 45 3/4 SARA CALIAN CONTRIBUTED TO THIS ARTICLE 9403030089 940303 MARKETING & MEDIA ADVERTISING AFTER BATTERIES EVEREADY BUNNY FINDS THERE'S LIFE WITH DIET COKE BY KEVIN GOLDMAN IN RECENT YEARS THE UBIQUITOUS ENERGIZER BUNNY INTERRUPTED COMMERCIALS FOR SUCH PRODUCTS AS ALARM SOAP DARNITOL PAIN RELIEVER AND ROTTENBRAU BEER THE JOKE IS ON THE CONSUMER IN THOSE ADS BECAUSE THE PRODUCTS DON'T EXIST NOW THE PINK AND WHITE CREATURE IS POPPING UP IN AN UNUSUAL PRINT ADVERTISEMENT FOR A REAL PRODUCT COCACOLA'S DIET COKE IT MARKS THE BUNNY'S FIRST APPEARANCE IN A LEGITIMATE AD FOR A PRODUCT OTHER THAN EVEREADY BATTERIES TEAMING DIFFERENT PRODUCTS IN A SINGLE AD IS UNCONVENTIONAL WHEN IT HAPPENS HOWEVER THE PRODUCTS USUALLY ARE RELATED WOOLITE DETERGENT FOR EXAMPLE CROPS UP IN ADVERTISEMENTS FOR APPAREL SUCH AS PERRY ELLIS MENSWEAR AND INCREASINGLY FOOD PRODUCTS FEATURE MORE THAN ONE BRAND NAME A PRACTICE KNOWN AS COBRANDING SUCH AS FAT FREE CRANBERRY NEWTONS FROM NABISCO SHOWN WITH OCEAN SPRAY CRANBERRIES BUT THE DIET COKE AD WHICH IS APPEARING IN APRIL ISSUES OF SASSY AND SEVENTEEN MAGAZINES IS UNORTHODOX AND RISKY IN FACT THE TWOPAGE AD COULD CONFUSE THE CASUAL READER WHAT IS BEING ADVERTISED A BATTERY OR A SOFT DRINK AT FIRST GLANCE IT ISN'T CLEAR THE USE OF THE FIVEYEAROLD BUNNY IS ALSO QUESTIONABLE BECAUSE THE BUNNY'S APPEAL SEEMS TO BE WANING SAYS ALLEN A MCCUSKER PRESIDENT OF CANAAN PARISH GROUP A MARKETING FIRM IN NEW CANAAN CONN IT DOESN'T MAKE ANY SENSE DIET COKE WANTS TO CAPITALIZE ON AN ICON THAT IS PASSE AND THEY'RE PLACING IT IN TEENAGE MAGAZINES WHERE FADS FADE THE FASTEST VIDEO STORYBOARD TESTS A NEW YORK COMPANY THAT RANKS THE POPULARITY OF COMMERCIALS THROUGH CONSUMER POLLING SAYS THE EVEREADY BUNNY ADS DROPPED OUT OF THE TOP 10 LAST YEAR FOR THE FIRST TIME SINCE 1989 I THINK CONSUMERS ARE FED UP WITH THE BUNNY SAYS DAVID VADEHRA PRESIDENT OF VIDEO STORYBOARD DIET COKE MARKETERS SAY THE INCLUSION OF THE BUNNY IS PART OF ITS OVERALL ADVERTISING STRATEGY TO SHOW HOW ITS BEVERAGE CAN BE ENJOYED DURING THE DAY FOR REFRESHMENT THE AD FEATURES A DIET COKE VENDING MACHINE ON A BEACH ALTHOUGH THE BUNNY IS WALKING AWAY FROM IT FOOTPRINTS LEAVE THE IMPRESSION THAT THE COTTONTAIL ANIMAL WEARING HIS TRADEMARK SUNGLASSES STOPPED FOR A DIET COKE BEFORE CONTINUING ON HIS WAY THE BUNNY DOESN'T HOLD A CAN OF THE BEVERAGE IN HIS PAW AND THERE ISN'T A GARBAGE CAN VISIBLE ONE CAN ONLY HOPE THAT THE BUNNY ISN'T A LITTERBUG AS SOON AS WE SAW THE AD FROM INTERPUBLIC GROUP'S LOWE & PARTNERS IT WAS THUMBS UP SAYS NANCY GIBSON DIET COKE'S WORLDWIDE BRAND DIRECTOR WE DON'T THINK PEOPLE WILL BE CONFUSED THE AD FORCES YOU TO STOP AND STUDY IT A CAN OF DIET COKE AND THE SLOGAN THIS IS REFRESHMENT APPEAR IN THE LOWER RIGHTHAND CORNER STILL SOME EXPERTS ON BRAND MARKETING ARE PUZZLED BY THE PARTNERSHIP I'M SURPRISED THAT THE LEADING SOFT DRINK COMPANY HAS TO RESORT TO LEVERAGING OTHER PEOPLE'S ICONS SAYS JOHN LISTER CHIEF EXECUTIVE OFFICER AND CREATIVE DIRECTOR OF LISTER BUTLER A NEW YORK CONSULTING FIRM THE BUNNY AD IS JUST ONE OF A FLURRY OF PRINT ADS FROM DIET COKE THE STRATEGY MIRRORS THAT OF THE TELEVISION CAMPAIGN WHICH HAS SEVEN DIFFERENT SPOTS MS GIBSON SAYS THERE WILL ULTIMATELY BE ABOUT A DOZEN DIET COKE PRINT ADS EACH TAILORED TO DIFFERENT DEMOGRAPHICS AND MAGAZINES FOR INSTANCE AN AD FOR THE NEW YORKER WILL FEATURE A CARTOON SHOWING A MAN RIDING IN A TAXI WHILE READING THE MAGAZINE AND HOLDING A CAFFEINEFREE DIET COKE THE HUMOR LIES IN THE CAB DRIVER'S POLITE ATTITUDE ANOTHER AD PRODUCED ESPECIALLY FOR GLAMOUR MIMICS THE MAGAZINE'S DO'S AND DON'T'S COLUMN THAT FEATURES FASHION HIGHLIGHTS AND FLUBS OTHER ADS WILL APPEAR IN SUCH DIVERSE MAGAZINES AS NATIONAL GEOGRAPHIC ARCHITECTURAL DIGEST ROLLING STONE AND YM DIET COKE IS AGGRESSIVELY ADVERTISING TO TRY TO REVERSE DECLINING SALES ACCORDING TO THE PUBLICATION BEVERAGE DIGEST DIET COKE HAD A 71 SHARE OF THE SOFTDRINK MARKET IN THE FOURWEEK PERIOD ENDED JAN 16 A DROP OF ONETENTH OF A PERCENTAGE POINT COMPARED WITH THE SAME PERIOD A YEAR EARLIER DIET PEPSI'S SHARE IN COMPARISON DROPPED TWOTENTHS OF A PERCENTAGE POINT TO 5 IN THE SAME PERIOD DIET COKE MARKETING EXECUTIVES DECLINE TO COMMENT ON THEIR AD BUDGET HOWEVER IT IS SAID TO BE IN EXCESS OF THE 60 MILLION THAT COMPETITIVE MEDIA REPORTING SAYS THE BRAND SPENT IN 1992 THE BUNNY AD MAY BE USED IN A WORLDWIDE CAMPAIGN INCLUDING SOME COUNTRIES WHERE THE BEVERAGE IS CALLED COKE LIGHT THE AD IS A WINWIN FOR EVEREADY WHICH DIDN'T HAVE TO PAY FOR THE ADDED EXPOSURE THE PRODUCTS DON'T SHARE THE SAME AD AGENCY WHILE DIET COKE ADS ARE PRODUCED BY LOWE & PARTNERS RALSTON PURINA'S EVEREADY ENERGIZER IS HANDLED BY CHIAT/DAY THIS OUTSIDE EMPLOYMENT FOR THE ENERGIZER BUNNY MAY NOT BE THE LAST TIME THAT DIET COKE BORROWS A CHARACTER THERE ARE SOME OTHER CONCEPTS ALONG THIS LINE SAYS MS GIBSON THERE ARE OTHER ICONS WE'RE CONSIDERING SHE DECLINES TO BE SPECIFIC WHO KNOWS THE DAY COULD COME WHEN TONY THE TIGER THE PILLSBURY DOUGHBOY OR EVEN THE COKE CLASSIC POLAR BEAR WILL TAKE THE ENERGIZER BUNNY'S PLACE AND THAT DAY MAY COME SOONER THAN DIET COKE REALIZES IN NEW ENERGIZER ADS A PLOT IS AFOOT TO KNOCK OFF THE BUNNY FOR SOME PEOPLE THAT DAY COULDN'T COME SOON ENOUGH PUNDITS WHO PREDICTED THAT TONYA HARDING HAD NO FUTURE IN ADVERTISING WERE WRONG TOWER RECORDS IS FEATURING A PHOTO OF THE CONTROVERSIAL FIGURE SKATER IN NEW YORK NEWSPAPER ADS FOR TOWER CLEARANCE OUTLET STORES NEXT TO MS HARDING'S PICTURE IS A CARTOON BALLOON SAYING UNBEATABLE BARGAINS THAT WILL BRING YOU TO YOUR KNEES OTHER PUNHEAVY LINES INCLUDE KNEE JERK REACTION GENUINE REDUCTIONS AND THE FINAL BLOW THE AD APPEARING IN THE VILLAGE VOICE AND NY PRESS WEEKLY NEWSPAPERS ENDS WITH A GROANER OF A TAGLINE BETTER LEG IT DOWN TO THE TOWER CLEARANCE OUTLET OR YOU'LL BE SKATING ON THIN ICE PRODUCED WITHOUT MS HARDING'S COOPERATION THE AD WAS MEANT AS A TOPICAL ATTENTIONGETTER SAYS LOUISE SOLOMON A COPYWRITER FOR TOWER A UNIT OF MTS INC SACRAMENTO CALIF WE DON'T WANT TO OFFEND ANYONE IT'S JUST A WAY OF PRESENTING SOMETHING JOLLY AND INTERESTING I HOPE SHE FEELS THE SAME WAY WHILE MS HARDING COULDN'T BE REACHED FOR COMMENT HER ATTORNEY DENNIS RAWLINSON ISN'T AMUSED WE'RE EXPERIENCING A NUMBER OF NEGATIVE ADS WHERE HER LIKENESS OR NAME IS USED IN A NEGATIVE LIGHT MR RAWLINSON SAYS TO THE EXTENT THAT THAT TYPE OF ADVERTISING IS BEING PUBLISHED WE'RE CONSIDERING APPROPRIATE LEGAL ACTION AGAINST THE PARTIES INVOLVED CARILLON IMPORTERS A UNIT OF GRAND METROPOLITAN SAID IT HAS SELECTED EIGHT AD AGENCIES TO MAKE FINAL PITCHES FOR THE 10 MILLIONPLUS STOLICHNAYA ACCOUNT THEY INCLUDE MULLEN ADVERTISING OF WENHAM MASS AND SEVEN NEW YORK SHOPS AD STORE AYER BERENTER GREENHOUSE & WEBSTER SAATCHI & SAATCHI'S CAMPBELL MITHUN ESTY GIGANTE VAZ & PARTNERS MARGEOTES FERTITTA & WEISS AND WARING & LAROSA THE OLD CALET HIRSCH & FERRELL AGENCY PREVIOUSLY HANDLED THE STOLICHNAYA ACCOUNT WHICH WENT INTO REVIEW SHORTLY BEFORE ITS US DISTRIBUTOR MONSIEUR HENRI WINES LTD LOST DISTRIBUTION RIGHTS TO CARILLON CARILLON IS THE FORMER DISTRIBUTOR OF ABSOLUT VODKA TOMMY MOE ELECTRO BRAIN INTERNATIONAL CORP AND OLYMPIC CHAMPION TOMMY MOE ARE CLOSE TO SIGNING A CONTRACT UNDER WHICH MR MOE WOULD ENDORSE A SPORTSSIMULATION VIDEO GAME TOMMY MOE'S SKIING AND SNOW BOARDING WINTER EXTREME OFFICIALS OF THE SALT LAKE CITY COMPANY SAID THE GAME WOULD BE COMPATIBLE WITH NINTENDO'S SUPER NES SYSTEM WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON NAMED WILLIAM CELLA 43 YEARS OLD EXECUTIVE VICE PRESIDENT BROADCAST AND PROGRAMMING MR CELLA WAS PREVIOUSLY A VICE PRESIDENT AT ABC OVERSEEING SPORTS SALES ABC IS A UNIT OF CAPITAL CITIES/ABC 9403030088 940303 INTERNATIONAL BLACKS ENTER SOUTH AFRICAN BOARDROOMS NATION STRIVES FOR ECONOMIC AND POLITICAL DEMOCRACY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA AS SOUTH AFRICA PREPARES FOR ITS FIRST MULTIRACIAL ELECTIONS IN APRIL BLACKS ARE MAKING INROADS INTO THE COUNTRY'S CORPORATE BOARDROOMS TOO IN WHAT IS BEING CALLED BLACK EMPOWERMENT CONSORTIA OF BLACK INVESTORS ARE SNAPPING UP CONTROL OF PREVIOUSLY WHITEDOMINATED COMPANIES AS SOUTH AFRICA STRIVES TO CREATE ECONOMIC AS WELL AS POLITICAL DEMOCRACY THE TREND WHICH BEGAN LAST YEAR WHEN A GROUP LED BY NTHATO MOTLANA NELSON MANDELA'S PHYSICIAN ACQUIRED 10 OF INSURER METROPOLITAN LIFE IS GATHERING STEAM AS THE TRANSFER OF POLITICAL POWER NEARS SINCE JANUARY DR MOTLANA HAS ALSO LED A BLACK INVESTMENT GROUP THAT ACQUIRED A MAJORITY STAKE IN THE SOWETAN A NEWSPAPER AND BLACK INTERESTS ALSO HAVE ACQUIRED CONTROLLING SHARES IN THE PRIMA MERCHANT BANK AND INSURANCE COMPANY AFRICAN LIFE SOUTH AFRICA'S WEEKLY MAIL & GUARDIAN COMMENTS BLACK IS BEAUTIFUL IN BUSINESS THIS YEAR TO MANY THE TREND TOWARD CREATING WHAT SOME CALL BLACKCHIP COMPANIES CONTROLLED BY BLACKS IS A LOGICAL EFFORT TO CORRECT THE IMBALANCES OF THE PAST AND GIVE BLACKS AN ECONOMIC STAKE IN THE COUNTRY'S FUTURE MANY BUSINESSMEN ARGUE THAT THESE TRANSACTIONS ARE VITAL TO HELP CEMENT ADHERENCE BY THE LONGDISENFRANCHISED BLACK COMMUNITY TO THE MARKET ECONOMY IT'S UNTENABLE THAT WHITE BUSINESS IS BIG BUSINESS AND THAT BLACK BUSINESS IS PEOPLE SELLING BANANAS ON THE STREET CORNER SAYS DOUG BAND CHIEF EXECUTIVE OFFICER OF ARGUS GROUP THE SELLERS OF THE SOWETAN THERE WILL BE A LOT OF DEALS AND PARTNERSHIPS BRINGING IN BLACK INVESTORS BUT THE TREND IS CONTROVERSIAL BUYERS ARE ACCUSED OF TOKENISM SELLERS ARE VIEWED AS OPPORTUNISTS QUITE FRANKLY IT'S LARGELY A SITUATION IN WHICH PERSONS WHO HAVE A CERTAIN AMOUNT OF POLITICAL CLOUT ARE USING MONEY THEY DON'T HAVE TO ACQUIRE BUSINESSES THEY PROBABLY WON'T RUN SAYS STEVEN FRIEDMAN DIRECTOR OF THE CENTER FOR POLICY STUDIES THE CONTROVERSY REFLECTS A QUANDARY SURROUNDING THESE TRANSACTIONS HOW CAN BLACKS EXPAND THEIR ECONOMIC MUSCLE WHEN APARTHEID HAS DEPRIVED THEM OF THE MEANS TO BUILD UP CAPITAL TO DO SO AND WHEN THEY MANAGE TO LEAPFROG OBSTACLES OBTAINING SOFT LOANS THAT CAN BE REPAID WITH DIVIDENDS FROM THEIR INVESTMENTS FOR EXAMPLE THEY'RE ACCUSED OF GETTING FAVORS BECAUSE OF THEIR RACE OR POLITICAL CONNECTIONS IT'S A CATCH22 SAYS FRANK KILBOURN MANAGER OF CORPORATE FINANCE AT STANDARD MERCHANT BANK WHICH HAS BEEN ACTIVE IN THE BLACK EMPOWERMENT TREND IF YOU DON'T WANT TO BE ACCUSED OF TOKENISM YOU DON'T DO ANYTHING THAT ISN'T STRICTLY COMMERCIAL AND SINCE THEY DON'T HAVE CAPITAL IF YOU DON'T WANT TO DO SOMETHING THAT ISN'T STRICTLY COMMERCIAL YOU END UP DOING NOTHING YOU HAVE TO FIND WAYS TO CROSS THE BRIDGE FROM NONPARTICIPATION TO CAPITALISM A LOOK AT THE SOWETAN AND AFRICAN LIFE TRANSACTIONS SHOWS DIFFERENT WAYS OF CROSSING THIS BRIDGE THOUGH ITS NAME BESPEAKS SOWETO THE SPRAWLING BLACK TOWNSHIP OUTSIDE JOHANNESBURG THAT WAS AT THE FOREFRONT OF THE STRUGGLE AGAINST APARTHEID AND ITS READERSHIP IS 99 BLACK THE SOWETAN WAS LONG 100OWNED BY THE WHITE ARGUS GROUP EVER SINCE SOUTH AFRICA BEGAN ITS DRAMATIC TRANSFORMATION FOUR YEARS AGO ARGUS HAD BEEN LOOKING AT WAYS OF GETTING BLACK SHAREHOLDERS IN THE SOWETAN TO COUNTER AFRICAN NATIONAL CONGRESS CHARGES OF EXCESSIVE MEDIA CONCENTRATION IN WHITE HANDS IF WE HADN'T COME UP WITH A SOLUTION INVOLVING BLACK OWNERSHIP OF THE SOWETAN THERE WOULD HAVE BEEN A POINT WHEN OUR INVESTMENT WOULD HAVE BEEN IN JEOPARDY ADMITS MR BAND BUT ARGUS'S EFFORTS LONG FOUNDERED ON THE LACK OF BLACK CAPITAL THE BREAKTHROUGH CAME LATE LAST YEAR WHEN DR MOTLANA AND PARTNERS GAINED A 20 STAKE IN A NEWLY SET UP CELLULAR TELEPHONE VENTURE THAT STAKE VALUED AT ABOUT 100 MILLION RAND 294 MILLION IS TO BE FINANCED IN PART BY A SOFT LOAN FROM THE INDUSTRIAL DEVELOPMENT CORP AND IN PART BY BANKS AND OTHER PARTNERS DR MOTLANA'S GROUP PROSPER AFRICA GROUP THEN SWAPPED WITH ARGUS PART OF ITS CELLULAR STAKE FOR AN INDIRECT 52 STAKE IN THE SOWETAN ARGUS RETAINS 43 AND THE SOWETAN'S STAFF WILL HOLD 5 THOUGH THE TRANSACTION GIVES BLACK INTERESTS CONTROL OF THE COUNTRY'S LARGEST DAILY NEWSPAPER WITH A CIRCULATION OF ABOUT 225000 THE DEAL HAS RUN INTO A LOT OF CRITICISM CRITICS NOTE THAT DR MOTLANA HAS GAINED CONTROL WITHOUT PUTTING UP HIS OWN MONEY AND THAT ARGUS STILL RETAINS A MAJOR ROLE ARGUS'S MOTIVATIONS ARE ALSO QUESTIONED ARGUS WANTED TO GET RID OF A HASSLE AND STILL LOOK GOOD BY SAYING IT'S BLACK EMPOWERMENT SAYS AGGREY KLAASTE THE SOWETAN'S BLACK EDITOR IN CHIEF AND WHILE HE SAYS THAT BLACK OWNERSHIP IS A PSYCHOLOGICAL BOOST MR KLAASTE SAYS EMPOWERMENT MEANS BUYING THE WHOLE THING AND HAVING IT IN YOUR HANDS AND THAT WON'T HAPPEN FOR A LONG TIME BUT DR MOTLANA RETORTS THAT WE HAVE NO MONEY SO THERE'S GOING TO BE A GREAT NEED IN ORDER TO EVEN THE ECONOMIC PLAYING FIELD THAT BLACKS HAVE ACCESS TO GRANT FINANCING AND HE SAYS HE PLANS TO SPREAD THE WEALTH BY FLOATING SHARES IN PROSPER AFRICA SHORTLY HE SAYS THAT APARTHEID HAS ALSO DEPRIVED BLACKS OF MANY ESSENTIAL SKILLS SO IT WOULD BE COMMERCIAL SUICIDE FOR US TO TRY AND GO IT ALONE ADDS RORY WILSON THE SOWETAN'S GENERAL MANAGER WOULD THE CRITICS HAVE PREFERRED THAT THE WHITE COMMUNITY CONTINUE TO OWN THIS LOCK STOCK AND BARREL LIKE THE SOWETAN AFRICAN LIFE CATERS ESSENTIALLY TO THE BLACK MARKET AND ITS OWNERS SOUTHERN LIFE HAD ALSO LONG BEEN SEEKING UNSUCCESSFULLY TO BRING IN BLACK SHAREHOLDERS TO FACILITATE ITS EXPANSION BUT BOARD MEMBER DONALD NCUBE MANAGED TO ASSEMBLE A GROUP OF BLACK INVESTORS THAT HAS AGREED TO ACQUIRE 51 OF THE COMPANY FOR 160 MILLION RAND SOUTHERN LIFE WILL RETAIN A 25 STAKE AND THE REMAINDER IS ALREADY HELD BY THE STAFF AND STOCK MARKET INVESTORS RATHER THAN LOOK FOR CONCESSIONARY FINANCING MR NCUBE WENT TO BLACK ORGANIZATIONS THAT CONTROL MONEY AND ASSETS BUT ARE OUTSIDE THE TRADITIONAL FINANCIAL MARKETS THEY INCLUDE TRADE UNIONS CHURCH GROUPS TRUSTS AND STOKVELS OR COMMUNITY POOLS OF MONEY THAT WERE SET UP TO ALLOW BLACKS TO GET AROUND THE LACK OF BANK FINANCING ANALYSTS AND BUSINESSMEN SAY THIS TRANSACTION MARKS A BREAKTHROUGH IN BLACK EMPOWERMENT BECAUSE IT BRINGS EXISTING BLACK CAPITAL INTO THE MAINSTREAM ECONOMY THE INVESTOR GROUP REPRESENTS A BROAD SEGMENT OF THE WORKING BLACK POPULATION WHICH SHOULD GIVE AFRICAN LIFE A COMPETITIVE EDGE THIS IS A NEW SORT OF ALLIANCE BETWEEN BUSINESS AND THE BLACK COMMUNITY THAT I'D LIKE TO THINK IS A STRATEGIC COUP SAYS ADRIAN ARNOTT AFRICAN LIFE'S OUTGOING CHAIRMAN 9403030087 940303 TREASURY SET TO RAISE 225 MILLION WITH SALE OF SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 225 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2498 BILLION IN BILLS THAT ARE MATURING THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS CUSIP 912794K94 MATURING ON JUNE 9 1994 AND 26WEEK BILLS CUSIP 912794N26 MATURING SEPT 8 1994 9403030086 940303 SOUTHERN ELECTRONICS HIRES SALOMON SEEKS STRATEGIC ALTERNATIVES' ATLANTA SOUTHERN ELECTRONICS CORP SAID IT HIRED SALOMON BROTHERS INC TO CONSIDER STRATEGIC ALTERNATIVES FOR THE COMPANY INCLUDING A POSSIBLE SALE MERGER OR ACQUISITION SOUTHERN ELECTRONICS A DISTRIBUTOR OF MICROCOMPUTERS COMPUTERPERIPHERAL PRODUCTS AND CELLULARTELEPHONE EQUIPMENT SAID IT IS LOOKING FOR WAYS TO GROW IN THE INCREASINGLY COMPETITIVE ELECTRONICSDISTRIBUTION INDUSTRY AS MORE COMPANIES CONSOLIDATE SOUTHERN ELECTRONICS SAID IT HAS TO MOVE FROM A REGIONAL PLAYER TO A NATIONAL PLAYER TO SURVIVE IT'S A SITUATION WHERE LEADERS ARE DEVELOPING AND WE WANT TO REMAIN A LEADER SAID LARRY AYERS VICE PRESIDENT FOR FINANCE MR AYERS DECLINED TO SAY WHETHER THE COMPANY IS MORE LIKELY TO MERGE OR BE SOLD HOWEVER IN A STATEMENT RELEASED LATE YESTERDAY SOUTHERN ELECTRONICS SAID ONE OF THE ALTERNATIVES THAT MIGHT BE CONSIDERED COULD RESULT IN A POSSIBLE SALE OF THE COMPANY OR OTHER TYPE OF TRANSACTION RESULTING IN THE CHANGE OF CONTROL IN THE COMPANY SOUTHERN ELECTRONICS HAS HAD TWO SLOW QUARTERS AS IT TRIES TO SLIM DOWN AND REDUCE EXPENSES IN ITS FISCAL SECOND QUARTER ENDED DEC 31 THE COMPANY EARNED 16 MILLION OR 22 CENTS A SHARE DOWN FROM 21 MILLION OR 29 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 748 MILLION FROM 609 MILLION IN FISCAL 1993 THE COMPANY REPORTED SALES OF 2495 MILLION THE COMPANY DISCLOSED ITS ACTIONS AFTER THE MARKETS CLOSED ON THE NASDAQ STOCK MARKET SOUTHERN ELECTRONICS CLOSED AT 9625 UNCHANGED 9403030085 940303 DEPOSED CEO REJOINS BATTLE FOR AMERICA WEST BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TWO MONTHS AFTER MICHAEL J CONWAY WAS OUSTED AS CHIEF EXECUTIVE OF AMERICA WEST AIRLINES HE HAS BEEN HIRED AS A CONSULTANT BY AN INVESTMENT FIRM SEEKING TO GAIN CONTROL OF THE AIRLINE HIS NEW EMPLOYER NEW YORK MONEY MANAGER MICHAEL STEINHARDT HOPES MR CONWAY CAN SHORE UP THE 200 MILLION BID HE'S LEADING TO BUY THE PHOENIX CARRIER WHICH IS IN BANKRUPTCY PROCEEDINGS IF SUCCESSFUL MR CONWAY WOULD AVENGE HIS IGNOMINIOUS DEPARTURE HE WAS FIRED ON NEW YEAR'S EVE AND COULD ONCE AGAIN RUN THE COMPANY HE HELPED CREATE IN 1983 THE MOVE IS THE LATEST TWIST IN A BITTER CORPORATE SAGA FOR CONTROL OF THE NATION'S NINTHLARGEST AIRLINE ONCE CONSIDERED A LOSER BUT NOW A PROFITABLE ENTERPRISE MR STEINHARDT'S OFFER TO MR CONWAY UNDERSCORES HIS RESOLVE IN WINNING A BIDDING WAR AGAINST A DEEPPOCKETED RIVAL AND IT PROVIDES ANOTHER OPPORTUNITY FOR MR CONWAY TO CONTINUE HIS ACRIMONIOUS FEUD WITH AMERICA WEST'S CHAIRMAN WILLIAM A FRANKE A PHOENIX TURNAROUND SPECIALIST WHO JOINED THE COMPANY IN 1992 AT INVESTORS' BEHEST MR FRANKE AND THE 10MEMBER BOARD WHICH HE CONTROLS SUPPORT A 220 MILLION BID LED BY FORT WORTH TEXAS INVESTORS DAVID BONDERMAN AND JAMES COULTER WHO HAVE SAID THEY WILL KEEP CURRENT MANAGEMENT US BANKRUPTCY JUDGE ROBERT MOOREMAN WILL DETERMINE THE WINNING BIDDER AND THUS DECIDE WHICH STRONGWILLED EXECUTIVE PREVAILS MR CONWAY'S REAPPEARANCE DOESN'T SURPRISE ASSOCIATES MIKE STARTED THAT AIRLINE WITH TWO OTHER PEOPLE AND IT'S HIS LIFE SAYS JUAN O'CALLAHAN AN AVIATION CONSULTANT AND FORMER AMERICA WEST BOARD MEMBER THE 48YEAROLD MR CONWAY IS AN ACCOUNTANT WHOSE TRADEMARK HAS BEEN TENACITY HIS FACE REDDENS DURING ARGUMENTS AND HE DRIVES HOME POINTS WITH FOURLETTER WORDS A PLAQUE IN HIS AMERICA WEST OFFICE READ THANK YOU FOR HOLDING YOUR BREATH WHILE I SMOKE MR CONWAY IS STILL SMARTING FROM HIS DISMISSAL IF I DROVE AMERICA WEST INTO BANKRUPTCY WHY DID THE BOARD KEEP ME THERE UNTIL I GOT THE COMPANY INTO RECORD PROFITS HE ASKS A SPOKESMAN FOR MR FRANKE SAID HE HAD NO COMMENT ON MR CONWAY'S NEW POSITION MR CONWAY SAYS HE WANTS TO HELP AMERICA WEST EMERGE FROM CHAPTER 11 WHERE IT HAS OPERATED FOR 2 1/2 YEARS BUT HE HAS NO GUARANTEE THAT HE WILL RUN THE CARRIER IF MR STEINHARDT'S BID SUCCEEDS CHARLES DAVIDSON A PARTNER AT MR STEINHARDT'S FIRM SAYS MR CONWAY WAS HIRED BECAUSE OF HIS INDUSTRY INSIGHTS MR STEINHARDT'S BID ABSOLUTELY WON'T BE AFFECTED BY THE LOSSES THAT THE FUNDS HE MANAGES HAVE SUFFERED IN RECENT WEEKS IN WORLD MARKETS SAYS GARY FRAGIN A GENERAL PARTNER OF STEINHARDT PARTNERS ONE THING HAS NOTHING TO DO WITH THE OTHER WE ARE VERY LIQUID HERE BUT MR CONWAY MAY BE RIDING A LOSING HORSE LAST WEEK AMERICA WEST'S BOARD UNANIMOUSLY SELECTED THE BID LED BY MESSRS BONDERMAN AND COULTER PRINCIPALS IN AIR PARTNERS LP WHICH HAS A 28 STAKE IN CONTINENTAL AIRLINES IT ALSO HAS THE BACKING OF AMERICA WEST'S EQUITY COMMITTEE AND CERTAIN SECURED CREDITORS MR FRANKE SAYS HE EXPECTS THE BID TO BE APPROVED BY THE BANKRUPTCY COURT BUT MR STEINHARDT'S BID IS BACKED BY UNSECURED CREDITORS THEIR SUPPORT IS CRITICAL FOR A REORGANIZATION PLAN TO BE APPROVED ALTHOUGH JUDGE MOOREMAN COULD CONFIRM THE BONDERMANLED PLAN IF HE BELIEVES IT WILL PAY ALL CREDITOR CLAIMS MR CONWAY SAYS AN ALLIANCE WITH CONTINENTAL WILL RESULT IN A LOSS OF IDENTITY FOR AMERICA WEST BECAUSE OF THE HOUSTONBASED CARRIER'S SIZE IT HAS FOUR TIMES THE REVENUE OF AMERICA WEST HE NOTES THAT CONTINENTAL IS LOSING MONEY IF NEW ROUTES OPEN UP MR CONWAY ASKS WHO WILL GET THEM CONTINENTAL OR AMERICA WEST A SPOKESMAN FOR MR BONDERMAN SAYS IT'S OUR INTENTION TO KEEP AMERICA WEST INDEPENDENT AND GIVE MANAGEMENT CONTROL THAT'S EXACTLY WHAT HAPPENED AT CONTINENTAL MR CONWAY'S ALLIANCE WITH MR STEINHARDT PROMPTED SHARP COMMENT FROM FOES DOUG COMBS WHO HELPED ORGANIZE HIS FELLOW AMERICA WEST PILOTS IN THEIR SUCCESSFUL DRIVE TO JOIN THE AIRLINE PILOTS ASSOCIATION SAYS MR CONWAY'S MISMANAGEMENT GALVANIZED THEIR EFFORTS WHY DOESN'T HE JUST BUY DYNAMITE AND THROW IT INTO CORPORATE HEADQUARTERS MR COMBS ASKS BUT MR CONWAY HAS SUPPORTERS AFTER HE WAS FIRED 42 AMERICA WEST MANAGERS SIGNED LETTERS OF PROTEST TO THE BOARD MR CONWAY NOTES AMERICA WEST'S TURNAROUND CAME IN THE TWO YEARS HE WAS CHIEF EXECUTIVE 1993 EARNINGS WERE 372 MILLION PREVIOUSLY HE WAS PRESIDENT AND CHIEF OPERATING OFFICER AS CEO I DID A LOT OF TRAGIC THINGS THAT HAD TO BE DONE MR CONWAY SAYS REFERRING TO 3500 LAYOFFS PAY CUTS AND FLEET REDUCTION BUT 11000 JOBS WERE SAVED NOW AMERICA WEST IS POSITIONED BETTER THAN AT ANY TIME IN ITS HISTORY AND AT THE VERY POINT WHEN INVESTORS GET INTERESTED AND COME TO THE DANCE TO BE SUMMARILY DISMISSED HE CONCLUDES THE JOB IS UNFINISHED 9403030084 940303 WHO'S NEWS CENTOCOR'S CHAIRMAN TO RETURN THIS MONTH MALVERN PA BIOTECHNOLOGY COMPANY CENTOCOR INC SAID ITS CHAIRMAN HUBERT JP SCHOEMAKER IS EXPECTED TO RETURN TO WORK THIS MONTH MR SCHOEMAKER THE COMPANY'S CHIEF TECHNOLOGY STRATEGIST LAST WEEK UNDERWENT A SUCCESSFUL SURGERY TO REMOVE A MALIGNANT BRAIN TUMOR A COMPANY SPOKESMAN SAID THE TUMOR WAS OF A SLOWGROWING TYPE AND SENSITIVE TO CHEMOTHERAPY HE ADDED THAT WHILE THE POSTOPERATIVE TREATMENT HASN'T YET BEEN DETERMINED IT MAY WELL INCLUDE CHEMOTHERAPY MR SCHOEMAKER TURNED OVER DAYTODAY COMMAND OF CENTOCOR IN NOVEMBER 1992 TO DAVID P HOLVECK WHO BECAME CHIEF EXECUTIVE OFFICER AND PRESIDENT THE MOVE CAME AFTER THE COMPANY'S FAILURE THAT YEAR TO GAIN FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS INTENDED CORE PRODUCT CENTOXIN AS A TREATMENT OF SEPTIC SHOCK 9403030083 940303 POLITICS & POLICY SCALEDBACK WELFAREREFORM PROPOSALS ARE OUTLINED BY CLINTON ADMINISTRATION BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CLINTON ADMINISTRATION OFFICIALS OUTLINED SCALEDBACK WELFAREREFORM PROPOSALS THAT WOULD FORCE PARTICIPATION IN SOME KIND OF JOBS PROGRAM OF ONLY ABOUT ONETHIRD OF ALL WELFARE RECIPIENTS IN 1999 MOST OF THE REST WOULD CONTINUE TO GET WELFARE BENEFITS WITHOUT WORK IN A MEETING YESTERDAY WITH CABINET MEMBERS COVERING THE DOMESTIC POLICY AREAS REPRESENTATIVES FROM MR CLINTON'S WELFAREREFORM WORKING GROUP EXPLAINED AN OPTIMISTIC PLAN THAT WOULD COST 6 BILLION IN 1999 IT WOULD INCLUDE CHILDCARE PROGRAMS FOR THE WORKING POOR TO KEEP THEM FROM SLIPPING ONTO WELFARE ROLLS BUT THAT PLAN WHICH THE WORKING GROUP DRAFTED SATURDAY CULMINATING MONTHS OF NEGOTIATING HAS ONE CATCH IT'S MORE THAN 2 BILLION SHORT OF FUNDS BECAUSE BUDGET OFFICIALS HAVE BEEN UNABLE AFTER WEEKS OF SEARCHING TO FIND SUFFICIENT CUTS IN OTHER PROGRAMS TO PAY FOR WELFARE REFORM CABINET MEMBERS WERE ALSO PRESENTED WITH A MORE PRAGMATIC STRIPPEDDOWN ALTERNATIVE COSTING ABOUT 36 BILLION ANNUALLY IN 1999 WHAT'S SLASHED IN THE STRIPPEDDOWN PLAN IS CHILD CARE FOR THE WORKING POOR CONSIDERED A CENTRAL ELEMENT IN MAKING WELFARE REFORM A REALITY FROM THE EARLIEST WORKINGGROUP DISCUSSIONS LAST YEAR WITHOUT A WAY TO KEEP YOUNG LOWINCOME PARENTS FROM SLIPPING INTO WELFARE THE VICTORIES OF MOVING EXISTING RECIPIENTS OFF WELFARE WOULD BE UNDERCUT BY A FLOOD OF NEW RECIPIENTS SAY WORKINGGROUP MEMBERS IF MORE MONEY CAN BE FOUND THEY SAID THAT WOULD BE THE FIRST THING TO BE RESTORED IN YESTERDAY'S MEETING WHICH ADMINISTRATION OFFICIALS SAID IS PROBABLY THE FIRST OF SEVERAL SUCH GATHERINGS CABINET OFFICIALS ALSO WERE BRIEFED ON KEY DETAILS THE WORKING GROUP DECIDED ON SATURDAY THE SURPRISINGLY SPARTAN VERSION OF REFORM OFFERED YESTERDAY SHOWED HOW DIFFICULT IT WILL BE FOR THE PRESIDENT TO FULFILL HIS CAMPAIGN PLEDGES GIVEN BUDGETARY CONSTRAINTS NO DECISIONS WERE MADE AT THE MEETING THE PRESIDENT EXPECTS TO GET A PROPOSAL TO CONGRESS BY APRIL AMONG THE RECOMMENDATIONS RECIPIENTS WOULD BE PUT INTO AN INTENSIVE TWOYEAR JOBTRAINING AND PLACEMENT PROGRAM AFTER A FIRST CHILD IS ONE YEAR OLD A CENTRAL FEATURE OF MR CLINTON'S PLAN IS TO END BENEFITS AFTER THAT TWOYEAR JOBS PROGRAM IS COMPLETED AFTER THAT THE WORKING GROUP DECIDED RECIPIENTS WOULD HAVE TO WORK FOR WAGES RATHER THAN CONTINUING TO RECEIVE WELFARE BENEFITS MEANING THEY WOULDN'T GET PAID UNLESS THEY SHOWED UP AT VARIOUS COMMUNITYWORK JOBS THOUGH ADMINISTRATION OFFICIALS WERE PROJECTING THE ANNUAL COST OF WELFARE REFORM IN 1999 TO BE AS HIGH AS 7 BILLION JUST LAST WEEK THEY ASSERTED THAT A PROGRAM COSTING HALF THAT MUCH STILL WOULD FULFILL THE PRESIDENT'S MUCHAPPLAUDED PLEDGE TO END WELFARE AS WE KNOW IT THE 36 BILLION PENCILED IN THUS FAR JUST ENOUGH FOR THE STRIPPEDDOWN PLAN WOULD COME FROM PROPOSED CUTS IN SUPPLEMENTAL SECURITY INCOME TO NONCITIZEN PARENTS OF IMMIGRANTS NETTING 2 BILLION CUTS IN EMERGENCY ASSISTANCE TO THE STATES ESPECIALLY FOR HOUSING NETTING 500 MILLION AND FERRETING OUT FRAUD AND DUPLICATION IN THE EARNED INCOMETAX CREDIT PASSED LAST YEAR TO HELP THE WORKING POOR THE EFFORT TO REDUCE FRAUD AND DUPLICATION IS EXPECTED TO NET ABOUT 100 MILLION FAR LESS THAN WAS ORIGINALLY ANTICIPATED ANOTHER BILLION OR SO WOULD COME FROM A WIDE ARRAY OF SMALLER CUTS THAT ADMINISTRATION OFFICIALS SAY THEY ARE NOW EXAMINING ALSO THE SLOW PHASEIN IS A MONEY SAVER FOR BOTH THE STRIPPEDDOWN AND LARGER PROGRAM STARTING IN 1996 THE TWOYEAR TIME LIMIT WOULD BE MANDATORY ONLY FOR RECIPIENTS BORN AFTER 1972 THAT WOULD ACCOUNT FOR ABOUT 25 TO 30 OF ALL WELFARE RECIPIENTS IN 1997 ACCORDING TO ADMINISTRATION OFFICIALS AND 36 OF AN ESTIMATED 47 MILLION ADULTS ON WELFARE IN 1999 FEDERAL FUNDING FOR THE OTHER 64 ABOUT HALF OF WHOM WOULD BE EXCLUDED FROM THE PROGRAM BECAUSE OF DISABILITIES OR SPECIAL CIRCUMSTANCES WOULD BE PROPOSED ONCE THE PROGRAM IS UP AND RUNNING ONE WAY MONEY MIGHT BE FOUND TO RESTORE SOME OF THE CHILDCARE PROGRAM IS THROUGH A CONTROVERSIAL PROPOSAL A SPECIAL TAX ON GAMBLING ESTABLISHMENTS AND THE PROFITS OF GAMBLERS WHICH IS ESTIMATED AS BRINGING IN 800 MILLION ANNUALLY BUT CREATING A TAX ALBEIT A NARROW ONE TO HELP THE POOR IS CONSIDERED POLITICALLY RISKY BY SOME OF THE PRESIDENT'S ADVISERS 9403030081 940303 LEGAL BEAT THE RECORD THE AMESES FACE GOVERNMENT 60 SPIES 1 BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL WHO SAYS IT'S SO TOUGH TO PUT A SPY BEHIND BARS AS ANOTHER SPY SCANDAL UNFOLDS IN WASHINGTON THE PUBLIC MAY BELIEVE THAT THE US IS UNABLE TO PROSECUTE SPIES EFFECTIVELY BUT WHILE THE GOVERNMENT WAS WIDELY CRITICIZED FOR NOT INDICTING FELIX BLOCH FOR SPYING FOR THE SOVIET UNION IN 1989 THE JUSTICE DEPARTMENT HAS AN EXTRAORDINARY WINLOSS RECORD IN SPY CASES THAT IT HAS BROUGHT TO TRIAL INDEED SINCE 1975 FEDERAL PROSECUTORS HAVE LOST ONLY ONE TRIAL AMONG THE 64 SPY CASES IN WHICH CRIMINAL CHARGES WERE BROUGHT THIRTYFIVE OF THE PROSECUTIONS RESULTED IN PLEA BARGAINS AND 20 IN CONVICTIONS AMONG THE OTHER DEFENDANTS ONE COMMITTED SUICIDE ONE WAS DECLARED MENTALLY INCOMPETENT ONE WAS TRADED FOR ANOTHER SPY AND TWO ARE FUGITIVES THREE CASES ARE PENDING THE PROSECUTION AND DEFENSE OF ALDRICH AMES AND MARIA DEL ROSARIO CASAS AMES WHO HAVE BEEN ACCUSED OF CONSPIRING TO SELL GOVERNMENT SECRETS TO MOSCOW ARE EXPECTED TO FOLLOW THE USUAL BATTLE PLANS THE GOVERNMENT WILL OFFER AN IMPRESSIVE COLLECTION OF CIRCUMSTANTIAL EVIDENCE BUT UNLESS PROSECUTORS GET MRS AMES TO TURN ON HER HUSBAND THERE PROBABLY WON'T BE DIRECT DOCUMENTARY OR EYEWITNESS EVIDENCE OF SECRETS BEING PASSED TO FOREIGN AGENTS MEANWHILE THE DEFENSE WILL TRY TO DERAIL THE PROSECUTION BY INSISTING ON DISCLOSURE OF HIGHLY CLASSIFIED INFORMATION THE GOVERNMENT WON'T WANT TO PROVIDE IN THIS SPY VS SPYCATCHER GIVE AND TAKE THE PROSECUTION GENERALLY HAS THE UPPER HAND UNDER THE CLASSIFIED INFORMATION PROCEDURES ACT PROSECUTORS MAY KEEP SENSITIVE DOCUMENTS OUT OF COURT PROCEEDINGS UNLESS DEFENSE LAWYERS SHOW THE DOCUMENTS ARE ESSENTIAL TO A FAIR TRIAL NORMALLY IN CRIMINAL CASES DEFENDANTS GET BROAD ACCESS TO ANY GOVERNMENT RECORDS THAT ARE RELEVANT TO THE DEFENSE ALSO COURT ORDERS FOR WIRETAPS ARE EASIER TO OBTAIN IN ESPIONAGE CASES THAN IN OTHER CRIMINAL INVESTIGATIONS SAYS CATHOLIC UNIVERSITY LAW PROFESSOR FRED WARREN BENNETT SUCH WIRETAPS WILL PLAY AN IMPORTANT ROLE IN THE AMES CASE AND ALMOST ALWAYS SAYS MR BENNETT ALLEGED SPIES LEAVE A PAPER TRAIL OF UNEXPLAINED WEALTH AS THE AMESES HAVE FROM WHICH JURORS ARE ALLOWED TO INFER GUILT EVEN IF THE ACTUAL TRANSFER OF SECRETS ISN'T PROVEN THESE FACTORS HELPED THE PROSECUTION'S CASE AGAINST JONATHAN POLLARD THE NAVY INTELLIGENCE OFFICER WHO PLEADED GUILTY IN 1985 TO CHARGES RELATED TO THE SALE OF SECRETS TO ISRAEL THE GOVERNMENT HAD PHOTOGRAPHS OF MR POLLARD IN HIS OFFICE AS HE WAS GATHERING DOCUMENTS THAT HE WAS NOT CLEARED TO POSSESS AND OBTAINED CRYPTIC COMMUNICATIONS HE MADE TO HIS ALLEGED HANDLERS IN ADDITION PROSECUTORS HOMED IN ON SOME 50000 IN UNEXPLAINED CASH HE HAD DEPOSITED IN BANK ACCOUNTS OVER SEVERAL YEARS SAYS CHARLES LEEPER WHO PROSECUTED THE CASE IN OTHER CASES PROSECUTORS HAVE ALSO WON CONVICTIONS WITHOUT ANY PHYSICAL EVIDENCE THAT SECRETS WERE PASSED TO FOREIGN AGENTS WHEN FORMER NATIONAL SECURITY AGENCY EMPLOYEE RONALD W PELTON WAS CHARGED WITH SELLING SECRETS TO THE SOVIET UNION PROSECUTORS PRESENTED EVIDENCE OF SUSPICIOUS SPENDING AS WELL AS A WIRETAPPED RECORDING TO THE SOVIET EMBASSY IN WASHINGTON I HAVE SOMETHING THAT I WOULD LIKE TO DISCUSS WITH YOU THAT I THINK WOULD BE VERY INTERESTING TO YOU MR PELTON SAID IN ONE CALL I'LL BE THERE IN TWO MINUTES HE SAID IN ANOTHER MR PELTON WAS CONVICTED AND SENTENCED TO LIFE YOU DON'T NEED THE DOCUMENTS IF YOU CAN CONCLUDE CIRCUMSTANTIALLY THAT DOCUMENTS WERE TRANSFERRED SAYS MR BENNETT WHO DEFENDED MR PELTON AGAINST THIS BACKDROP THE AMESES' MOST EFFECTIVE DEFENSE MAY BE TO FIGHT HARD ON THEIR VITAL NEED FOR ACCESS TO A WIDE RANGE OF GOVERNMENT DOCUMENTS MR AMES'S ATTORNEY PLATO CACHERIS DECLINED TO DETAIL THE SPECIFICS OF HIS DEFENSE BUT SAID HE WOULD ATTACK THE FAILURE OF GOVERNMENT PROSECUTORS SO FAR TO PRODUCE ANY SECRET DOCUMENTS ALLEGEDLY TURNED OVER BY THE AMESES OR ANY FOREIGN AGENT WITH WHOM THEY MAY HAVE MET OTHER LAWYERS SAY HIS BEST BET MAY BE TO INSIST THAT THE GOVERNMENT PROVE THAT WHATEVER SECRETS MAY HAVE BEEN PASSED WERE DIRECTLY RELATED TO NATIONAL DEFENSE INTELLIGENCE AGENCIES ARE USUALLY LOATH TO MAKE SUCH INFORMATION PUBLIC WHEN THEY FEAR THEY WILL BE FORCED TO DO SO THE GOVERNMENT BECOMES MORE AMENABLE TO A PLEA BARGAIN LAWYERS SAY FEAR OF PUBLIC DISCLOSURE IS THE OVERRIDING CONCERN OF THE GOVERNMENT SAYS FORMER PROSECUTOR LEEPER SEEMINGLY INNOCUOUS MATERIAL FROM INSIDE AN INTELLIGENCE AGENCY MIGHT TELL SOMETHING ABOUT A SOURCE OF THAT EVIDENCE OR A METHOD BY WHICH IT WAS OBTAINED NOTES WASHINGTON DEFENSE LAWYER THEODORE OLSON WHO REPRESENTED MR POLLARD LAWYERS WATCHING THE AMES CASE SAY THAT IF THE AMESES ARE INDEED GUILTY THEY COULD ALSO TRY TO BARGAIN FOR LENIENCY BY OFFERING TO ASSESS FOR THE GOVERNMENT HOW MUCH DAMAGE THEY HAVE DONE AS A NONGOVERNMENT AGENT WITH NO OFFICIAL ACCESS TO CLASSIFIED DATA MRS AMES IN PARTICULAR COULD NEGOTIATE QUITE A FAVORABLE DEAL YOU CAN BET THE GOVERNMENT IS LETTING HER KNOW THAT SAYS MR LEEPER DESPITE ALL THE GOVERNMENT'S ADVANTAGES IT DOESN'T ALWAYS GET ITS SPY TAKE THE CASE OF MR BLOCH THE FORMER FOREIGN SERVICE OFFICER WHO WAS VIDEOTAPED PURPORTEDLY HANDING A BRIEFCASE WITH UNSPECIFIED CONTENTS TO A SOVIET AGENT IN PARIS MR BLOCH WAS SUBJECTED TO AROUNDTHECLOCK SURVEILLANCE BY THE FEDERAL BUREAU OF INVESTIGATION AND WAS FIRED FROM HIS 81400AYEAR JOB BUT HE STEADFASTLY REFUSED TO ADMIT WRONGDOING IN THE END THE GOVERNMENT HAD INSUFFICIENT EVIDENCE TO OBTAIN AN INDICTMENT ULTIMATELY EVERY CASE COMES DOWN TO TWO THINGS WITNESSES AND DOCUMENTS SAYS MR BLOCH'S LAWYER JOHN BRAY IN WASHINGTON THE EVIDENCE AGAINST THE AMESES APPEARS TO BE MORE CIRCUMSTANTIAL THAN THE EVIDENCE AGAINST MR BLOCH BUT THERE'S MORE OF IT AND IT'S POTENTIALLY MORE DEVASTATING AMONG THE ITEMS DISCLOSED THIS WEEK AT A BAIL HEARING A BALANCE SHEET ADDRESSED TO MR AMES AS DEAR FRIEND APPARENTLY FROM A CONTACT IN MOSCOW THAT DESCRIBES 27 MILLION IN PAYMENTS A NINEPAGE ASSIGNMENT LIST OF WHAT THE SOVIETS WERE SEEKING AND MORE THAN 100 CLASSIFIED CENTRAL INTELLIGENCE AGENCY CABLES IN MR AMES'S HOME COMPUTER IF THERE'S NO EVIDENCE TO SUBSTANTIATE FAMILY MONEY SAYS FORMER US ATTORNEY BRECKENRIDGE WILLCOX WHOSE OFFICE IN BALTIMORE OVERSAW THE PELTON PROSECUTION THEN THAT'S A HUGE HURDLE FOR THE DEFENSE TO OVERCOME BOTH AMESES ARE BEING REPRESENTED BY COURTAPPOINTED LAWYERS WHO ARE AMONG THE TOP CRIMINAL DEFENSE ATTORNEYS IN WASHINGTON MR AMES'S LAWYER MR CACHERIS HAS DEFENDED SHEIKH KAMAL ADHAM THE EXHEAD OF INTELLIGENCE FOR SAUDI ARABIA IN THE BANK OF CREDIT AND COMMERCE INTERNATIONAL CASE MRS AMES'S COUNSEL WILLIAM B CUMMINGS WAS US ATTORNEY IN ALEXANDRIA VA AND IN THE 1970S WON THE CONVICTION OF A US INFORMATION AGENCY EMPLOYEE ACCUSED OF PASSING DOCUMENTS TO A SOURCE WITH TIES TO NORTH VIETNAM MR CUMMINGS NOW IN PRIVATE PRACTICE IN ALEXANDRIA ALSO HAS THE DISTINCTION OF WINNING THE ONLY ACQUITTAL IN THE PAST 20 YEARS IN A US SPY CASE HE SUCCESSFULLY DEFENDED FORMER ARMY COUNTERINTELLIGENCE SPECIALIST RICHARD CRAIG SMITH IN 1978 A WOMAN HAS SUED HER HEALTHMAINTENANCE ORGANIZATION FOR ALLEGEDLY PRESSURING HER DOCTOR TO OPPOSE HER EFFORTS TO WIN COVERAGE FOR AN EXPENSIVE BREASTCANCER TREATMENT THE WOMAN CHRISTINE DEMEURERS CONTENDS THAT THE HEALTH NET HMO THREATENED TO CUT OFF ITS RELATIONSHIP WITH HER HOSPITAL THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES MEDICAL CENTER IF A DOCTOR THERE CONTINUED TO ADVOCATE THE TREATMENT MS DEMEURERS WAS SEEKING A BONEMARROW TRANSPLANT A PROCEDURE THAT MANY INSURERS AND HMOS CONSIDER EXPERIMENTAL AND REFUSE TO COVER SHE HAD GONE TO COURT TO TRY TO COMPEL COVERAGE AFTER HEALTH NET DECLINED TO PROVIDE IT VOLUNTARILY ALTHOUGH MANY PATIENTS HAVE SUED SEEKING COVERAGE FOR BONEMARROW TRANSPLANTS MS DEMEURERS' CASE IS BELIEVED TO BE THE FIRST TO ALLEGE THAT AN HMO INTERFERED WITH THE RELATIONSHIP BETWEEN A PATIENT AND HER DOCTOR MS DEMEURERS' LAWYER MARK HIEPLER RECENTLY WON AN 89 MILLION VERDICT IN A SEPARATE CASE AGAINST HEALTH NET INVOLVING COVERAGE FOR A BONEMARROW TRANSPLANT SPECIFICALLY MS DEMEURERS ALLEGES THAT HEALTH NET'S PRESSURE PROMPTED HER PHYSICIAN WHO HAD FILED A WRITTEN DECLARATION OF SUPPORT FOR HER POSITION WITH THE COURT TO FILE A SUBSEQUENT DECLARATION SUPPORTING THE HMO THE PHYSICIAN JOHN GLASPY DIDN'T RETURN A MESSAGE SEEKING COMMENT A RECEPTIONIST AT HIS OFFICE SAID HE WAS OUT OF TOWN LYLE SWALLOW A LAWYER FOR HEALTH NET A WOODLAND HILLS CALIF UNIT OF HN MANAGEMENT HOLDINGS SAID THAT DR GLASPY'S TWO DECLARATIONS WEREN'T INCONSISTENT MR SWALLOW SAID THAT IN ONE DECLARATION DR GLASPY ASSERTED THAT THE PATIENT MIGHT BENEFIT FROM THE TREATMENT AND IN THE OTHER ACKNOWLEDGED THAT THE BENEFITS WERE UNPROVEN CHILEAN GRAPE GROWERS AND EXPORTERS CAN SUE THE US FOOD AND DRUG ADMINISTRATION FOR DAMAGES STEMMING FROM A 1989 CYANIDEPOISONING SCARE A US APPEALS COURT RULED THE FEDERAL APPEALS COURT IN PHILADELPHIA REVERSED A LOWERCOURT DECISION THAT HAD DISMISSED THE CASE WHICH SEEKS MORE THAN 200 MILLION IN DAMAGES THE TRIAL JUDGE HAD RULED THAT THE GOVERNMENT COULDN'T BE SUED BECAUSE THE FDA WAS EXERCISING ITS AUTHORITY TO PROTECT THE PUBLIC THE FDA ORDERED AN EMBARGO AFTER ONE OF ITS LABS DETECTED TRACES OF CYANIDE IN TWO CHILEAN GRAPES FOLLOWING ANONYMOUS TIPS OF CYANIDE TAMPERING THE APPEALS COURT HOWEVER SAID THE LAWSUIT CAN PROCEED TO DETERMINE WHETHER THE FDA RELIED ON NEGLIGENT LAB TESTS IN DECLARING THE EMBARGO THE CHILEAN GROWERS AND EXPORTERS CLAIM THAT THE FDA'S LABORATORY PROCEDURES WERE LAX AND IMPROPER AND THAT IT WAS IMPOSSIBLE FOR THE GRAPES IDENTIFIED BY THE FDA TO HAVE BEEN INJECTED WITH CYANIDE IN CHILE BECAUSE THERE IS AN OBLIGATION TO USE DUE CARE WHETHER IN OPERATING A LIGHTHOUSE OR TESTING A GRAPE FOR CYANIDE DECISIONS ARISING FROM THE EXECUTION OF THAT DUTY MUST BE BASED UPON THE PROPER PERFORMANCE OF THAT DUTY THE APPELLATE PANEL SAID IN A 21 DECISION THE COURT ADDED HOWEVER THAT THE PLAINTIFFS STILL MUST PROVE AT TRIAL THAT THE ALLEGEDLY DEFICIENT LAB WORK CAUSED THE DAMAGES AN ATTORNEY FOR THE GOVERNMENT SAID HE COULDN'T DISCUSS WHETHER THE DECISION WILL BE APPEALED FURTHER THE GOVERNMENT HOWEVER HAS ASKED THE COURT TO GIVE IT ADDITIONAL TIME TO DECIDE WHETHER TO APPEAL ROBERT L HICKOK AN ATTORNEY FOR ABOUT 2000 CHILEAN GROWERS EXPORTERS AND SHIPPERS SAID THE FDA'S ACTIONS HAD WIPED OUT AN ENTIRE MARKET FOR AN ENTIRE SEASON HE SAID THE PLAINTIFFS WOULD SHOW AT TRIAL THAT THE FDA LAB RESULTS WERE A PHYSICAL IMPOSSIBILITY AND COULD ONLY HAVE BEEN THE RESULT OF LAB ERROR EDWARD FELSENTHAL AND WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9403030080 940303 ECONOMY HELPWANTED ADVERTISING SLUMPED DURING JANUARY NEW YORK HELPWANTED ADVERTISING SLUMPED IN JANUARY AFTER POSTING A MODEST GAIN IN DECEMBER AS CHILLY TEMPERATURES HAMPERED MANY REGIONS OF THE COUNTRY'S JOB MARKET THE CONFERENCE BOARD SAID THE BOARD'S SEASONALLY ADJUSTED HELPWANTED INDEX AN INDICATOR OF HIRING PLANS FELL TO 106 IN JANUARY DOWN FOUR POINTS FROM DECEMBER'S 110 IN JANUARY 1993 THE INDEX REGISTERED 93 COLD WEATHER HAD A NEGATIVE IMPACT ON JOB ADVERTISING IN JANUARY AS IT HAD ON MOST ECONOMIC INDICATORS SAID KEN GOLDSTEIN AN ECONOMIST WITH THE BOARD A NONPROFIT BUSINESS RESEARCH GROUP THAT SURVEYS HELPWANTED AD VOLUME AT 51 MAJOR NEWSPAPERS IN THE LAST THREE MONTHS ADVERTISING VOLUME ROSE IN FIVE OF NINE AREAS ACROSS THE US INCLUDING THE ROCKY MOUNTAIN REGION WHICH POSTED THE STRONGEST GAIN OF 57 THE WEST NORTH CENTRAL AND NEW ENGLAND REGIONS FOLLOWED WITH RISES OF 42 AND 4 RESPECTIVELY ALTHOUGH THE NEW ENGLAND REGION SAW HEAVY SNOW IT POSTED A 4 GAIN FOUR REGIONS EXPERIENCED DECLINES NOTABLY THE EAST SOUTH CENTRAL WHICH TUMBLED 12 THE PACIFIC COAST GAINED 22 BUT THE BOARD WARNED THAT EFFECTS OF THE RECENT LOS ANGELES EARTHQUAKE COULD LEAD TO POORER RESULTS 9403030079 940303 FDA FBI INVESTIGATE PEPSICO BOTTLER AFTER A BOY IS HOSPITALIZED KNOXVILLE TENN THE FEDERAL BUREAU OF INVESTIGATION AND THE FOOD AND DRUG ADMINISTRATION ARE INVESTIGATING A PEPSICO INC BOTTLER HERE FOLLOWING THE HOSPITALIZATION OF A FOURYEAROLD BOY AFTER HE DRANK SOME 7UP GEORGE LAMBERT AN FBI SUPERVISORY SPECIAL AGENT IN KNOXVILLE SAID THE INVESTIGATION BEGAN LAST WEEK AFTER A BOY IN SWEETWATER TENN VOMITED AND BECAME ILL AFTER DRINKING 7UP FROM A TWOLITER BOTTLE NO SIMILAR INCIDENTS HAVE BEEN REPORTED PEPSI WHICH BOTTLES 7UP IN KNOXVILLE CALLED THE FDA TO ASK IT TO LOOK INTO THE INCIDENT FEB 22 A SPOKESWOMAN SAID THE COMPANY BASED IN PURCHASE NY SUSPECTS SOMETHING WAS PUT INTO THE CONTAINER AFTER IT WAS SHIPPED FROM THE BOTTLING PLANT SHE SAID INVESTIGATORS HAVEN'T DETERMINED WHAT CAUSED THE ILLNESS THE CHILD HAS BEEN HOSPITALIZED FOR ONE WEEK HIS FAMILY DECLINED TO COMMENT 9403030078 940303 US PROPOSES TO CUT DISASTERAID COSTS VIA CROP INSURANCE BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE AGRICULTURE DEPARTMENT PROPOSED LEGISLATION THAT WOULD CUT THE GOVERNMENT'S DISASTERAID COSTS BY FORCING MORE FARMERS INTO THE FEDERAL CROPINSURANCE PROGRAM THE DEPARTMENT ESTIMATED THAT THE NEW APPROACH WOULD SAVE TAXPAYERS 750 MILLION OVER FIVE YEARS THE PROGRAM WOULD COST 81 BILLION OVER THE PERIOD BUT THAT'S LESS THAN THE PROJECTED COST OF THE CURRENT CROPINSURANCE PROGRAM COMBINED WITH THE COST OF EMERGENCY RELIEF PROGRAMS THAT CONGRESS ENACTS WHEN THERE IS WIDESPREAD CROP LOSS FROM FLOODS OR OTHER DISASTERS THE GOAL IS TO REPLACE THESE AD HOC ASSISTANCE BILLS AGRICULTURE SECRETARY MIKE ESPY SAID INSTEAD FARMERS WHO GOT GOVERNMENT COMMODITYPRICESUPPORT PAYMENTS OR FARMERS HOME ADMINISTRATION LOANS WOULD HAVE TO BUY CROP INSURANCE AT LEAST A NEW CATASTROPHICCOVERAGE POLICY FARMERS WHO WANTED MORE COVERAGE COULD BUY IT RIGHT OFF THE BAT WE EXPECT PARTICIPATION TO JUMP FROM THE CURRENT 33 TO OVER 80 MR ESPY SAID UNLIKE CURRENT FEDERAL CROP INSURANCE THE NEW PROGRAM WOULD INCLUDE COVERAGE FOR PLANTINGS DELAYED OR PREVENTED BY SEVERE WEATHER THE PROPOSAL ALSO WOULD SET UP LEGISLATIVE HURDLES TO MAKE IT MORE DIFFICULT FOR FUTURE CONGRESSES TO ENACT EMERGENCY DISASTER AID FOR CROP LOSSES THE IMPETUS FOR THE NEW PLAN CAME FROM LAST SPRING'S AND SUMMER'S MIDWEST FLOODS WHICH SENT THE GOVERNMENT'S TAB SOARING FOR CROP AND FLOODINSURANCE PROGRAMS WHILE SPURRING CONGRESS TO ADD EMERGENCY DISASTERASSISTANCE MONEY AS A RESULT FEDERAL CROPINSURANCE OUTLAYS WILL CLIMB FROM 461 MILLION IN THE FISCAL YEAR THAT ENDED LAST SEPT 30 TO 104 BILLION IN FISCAL 1994 ADDITIONAL DISASTER PAYMENTS TO FARMERS WILL RISE FROM 123 BILLION TO 235 BILLION OVER THE PERIOD THE GOVERNMENT ESTIMATES WHILE THERE HAS BEEN CONSIDERABLE AGITATION AMONG DISSATISFIED FARMERS AND MEMBERS OF CONGRESS TO BEEF UP CROP INSURANCE AND MOVE AWAY FROM AD HOC DISASTER AID THE ADMINISTRATION PROPOSAL COULD RUN INTO SOME SERIOUS LEGISLATIVE SNAGS MANY FARMERS WHO WILL BE FORCED TO PAY THE INSURANCE FEES OR PREMIUMS TO STAY IN THE CROPSUBSIDY PROGRAM ARE LIKELY TO COMPLAIN A HOUSE AGRICULTURE COMMITTEE AIDE SAID ALSO THE PROPOSAL WOULD SEEK TO MAKE EMERGENCY DISASTER ASSISTANCE UNPALATABLE TO CONGRESS BY PUTTING IT ON THE BUDGET IT TYPICALLY HAS BEEN TREATED AS AN OFFBUDGET EXPENSE THIS COULD FORCE CONGRESS TO CUT OTHER PROGRAMS IF IT WANTED TO PROVIDE THE AID 9403030077 940303 VIACOM INC RECEIVES SHARES OF PARAMOUNT IN TAKEOVER'S 1ST STEP NEW YORK VIACOM INC COMPLETED THE FIRST STEP OF ITS TAKEOVER OF PARAMOUNT COMMUNICATIONS INC BY ACCEPTING 617 MILLION PARAMOUNT SHARES UNDER ITS OFFER OF 107 A SHARE IN CASH FOR 501 OF THE SHARES OUTSTANDING VIACOM SAID THAT 1203 MILLION PARAMOUNT SHARES WERE TENDERED UNDER ITS OFFER VIACOM WILL RETURN TEMPORARILY TO THEIR OWNERS PARAMOUNT SHARES THAT WEREN'T ACQUIRED FOR CASH VIACOM LATER WILL ISSUE A PACKAGE OF SECURITIES WORTH ABOUT 50 A SHARE FOR THE REMAINING 499 OF PARAMOUNT SHARES REFLECTING THE EXPIRATION OF VIACOM'S HIGHER CASH OFFER PARAMOUNT SHARES FELL 2775 OR 37 TO 4825 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BUT ONLY 142800 SHARES CHANGED HANDS BECAUSE MOST OF THE STOCK HAD BEEN TENDERED TO VIACOM MEANWHILE PARAMOUNT SHARES HELD BY VIACOM THAT WEREN'T ACQUIRED FOR CASH BEGAN TRADING YESTERDAY ON A WHENDISTRIBUTED BASIS THOSE SHARES ROSE 150 TO 4650 ON VOLUME OF 14 MILLION SHARES IN BIG BOARD COMPOSITE TRADING 9403030076 940303 TECHNOLOGY MICROSOFT PLANS TO REVAMP SEVERAL SOFTWARE PROGRAMS REDMOND WASH MICROSOFT CORP REACTING TO LAST WEEK'S LOSS OF A PATENTINFRINGEMENT LAWSUIT IS REVAMPING AS MANY AS A HALF DOZEN SOFTWARE PROGRAMS THAT MAKE SOME USE OF THE COMPANY'S DISPUTED DATACOMPRESSION TECHNOLOGY MICROSOFT EXECUTIVES SAID THE COST OF CHANGING THE PRODUCTS WOULD HAVE NO MATERIAL AFFECT ON THE COMPANY LAST WEEK A LOS ANGELES JURY SAID MICROSOFT SHOULD PAY STAC ELECTRONICS 120 MILLION FOR INFRINGING UPON PATENTS THAT UNDERLIE A TECHNIQUE THAT MAKES IT POSSIBLE TO CUT IN HALF THE AMOUNT OF HARDDISK SPACE REQUIRED TO STORE INFORMATION IN ITS LATEST VERSION OF DOS A PERSONALCOMPUTER OPERATING SYSTEM MICROSOFT ADDED A FEATURE CALLED DOUBLE SPACE THAT PERFORMED THE COMPRESSION IN THE AFTERMATH OF LAST WEEK'S RULING WHICH MICROSOFT PLANS TO APPEAL THE COMPANY SAID IT WAS HALTING MANUFACTURE OF DOS WITH DOUBLE SPACE AND CUTTING THE FEATURE FROM THE PRODUCT NOW MICROSOFT HAS REALIZED THAT IT MUST ALSO TAKE SIMILAR STEPS TO REMOVE ITS DATACOMPRESSION FEATURE FROM A FORTHCOMING VERSION OF ITS WINDOWS NT OPERATING SYSTEM EXCEL A SPREADSHEET AND POWER POINT A PRESENTATIONS PROGRAM ALSO CONTAIN THE DOUBLE SPACE TECHNOLOGY A COMPANY OFFICIAL SAID 9403030074 940303 BUSINESS BRIEF WESTERN DIGITAL SEES EARNINGS EXCEEDING FORECASTS FOR PERIOD IRVINE CALIF WESTERN DIGITAL CORP EXPECTS EARNINGS FOR THE THIRD QUARTER ENDING MARCH 31 TO EXCEED 55 CENTS A SHARE FAR ABOVE ANALYSTS' ESTIMATES ITS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT CHUCK HAGGERTY SAID ANALYSTS HAD BEEN FORECASTING EARNINGS OF BETWEEN 28 AND 42 CENTS A SHARE FOR THE MAKER OF DISK DRIVES COMPUTER STORAGE DEVICES MR HAGGERTY SAID IN AN INTERVIEW THAT REVENUE FOR THE LATEST QUARTER WILL BE NORTH OF 425 MILLION MORE THAN 30 ABOVE LAST YEAR'S 3254 MILLION IN THIRDQUARTER REVENUE AND WELL ABOVE ANALYSTS' REVENUE ESTIMATES FOR THE PERIOD WHICH RANGED FROM 353 MILLION TO 415 MILLION IN THE YEARAGO QUARTER WESTERN DIGITAL HAD A NET INCOME OF 16 MILLION OR FIVE CENTS A SHARE WESTERN DIGITAL IS ONE OF THE FIVE MAJOR MAKERS OF DISK DRIVES AN INDUSTRY DOMINATED BY US COMPANIES LIKE OTHERS IN THE BUSINESS IT WAS HURT IN 1993 BY FEROCIOUS PRICE WARS HOWEVER THOSE PRICE WARS HAVE ABATED AND MR HAGGERTY SAID WESTERN DIGITAL IS BETTER POSITIONED THAN RIVALS TO CAPITALIZE ON STABLE PRICES AND CURRENT TRENDS IN THE PC BUSINESS MR HAGGERTY SAID PC SALES REMAIN ROBUST SPURRING DEMAND FOR DISK DRIVES MOREOVER MR HAGGERTY SAID THE INTRODUCTION OF INTEL CORP'S NEW PENTIUM MICROPROCESSOR AND THE PENDING INTRODUCTION OF POWERPC A HIGHPOWERED CHIP DEVELOPED BY APPLE COMPUTER INC MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP ARE DRIVING MUCH OF WESTERN DIGITAL'S IMPROVED PERFORMANCE THOSE CHIPS AND SUCCEEDING GENERATIONS ARE MORE POWERFUL THAN PAST TOPEND CHIPS MACHINES THAT INCORPORATE THEM WILL HAVE SIGNIFICANTLY MORE STORAGE CAPACITY THAT IN TURN IS PUSHING UP DEMAND FOR HIGHEND HIGHCAPACITY DISK DRIVES WHERE WESTERN DIGITAL HAS AN EDGE MR HAGGERTY SAID HE SAID THE COMPANY EXPECTS TO SHIP AT LEAST 18 MILLION UNITS IN THE MARCH QUARTER 50 ABOVE UNIT SHIPMENTS OF 12 MILLION IN THE YEAREARLIER QUARTER MR HAGGERTY SAID ANALYSTS' CURRENT ESTIMATES FOR THE FISCAL FOURTH QUARTER WHICH RANGE FROM BETWEEN 32 CENTS A SHARE AND 51 CENTS A SHARE MAY BE TOO LOW 9403030073 940303 WHAT'S NEWS BUSINESS AND FINANCE STOCKS STAGED A STUNNING COMEBACK AFTER FALLING MORE THAN 50 POINTS AMID PLUMMETING BOND PRICES AT HOME AND ABROAD THE DOW JONES INDUSTRIAL AVERAGE CLOSED 2251 POINTS HIGHER AT 383174 THE TREASURY'S BENCHMARK 30YEAR BOND ROSE 1/8 POINT ITS YIELD SETTLED AT 677 AFTER LONGTERM RATES ROSE AS HIGH AS 685 CONCERNS ABOUT MOUNTING MARKET LOSSES BY BIG TRADING FIRMS HURT THE STOCKS OF BANKERS TRUST NEW YORK AND JP MORGAN TRADING IN BANKERS TRUST'S STOCK WAS DELAYED AND THE FIRM TOOK THE UNUSUAL STEP OF ANNOUNCING THAT IT WAS PROFITABLE SO FAR IN 1994 PRUDENTIAL SECURITIES PLANS TO SET ASIDE AN ADDITIONAL 100 MILLION IN RESERVES THIS YEAR TO COVER LEGAL COSTS FROM LIMITEDPARTNERSHIP CLAIMS BRINGING ITS LEGAL TAB FROM SOURED PARTNERSHIPS TO AS MUCH AS 865 MILLION LAWMAKERS DECIDED TO BYPASS A HOUSE SUBCOMMITTEE DIVIDED ON HEALTHCARE LEGISLATION AND TRY FOR A COMPROMISE ELSEWHERE ANOTHER SIGN OF THE TROUBLE CONGRESS FACES IN REACHING A CONSENSUS ON THE ISSUE CHRYSLER IS TRYING TO FIGURE OUT HOW AND WHERE TO MAKE MORE CARS AND TRUCKS AS THE COMPANY IS RUNNING OUT OF CAPACITY TO MEET DEMAND FOR ITS MOST PROFITABLE PRODUCTS OPTIONS INCLUDE CANCELING A PLANNED PLANT CLOSING EXPANDING OUTPUT IN MEXICO AND ADDING SHIFTS AT EXISTING PLANTS MINNESOTA MINING AND TWO OTHER COMPANIES WERE ORDERED TO PAY 185 MILLION IN DAMAGES IN A CLOSELY WATCHED BREASTIMPLANT LAWSUIT INVOLVING THREE WOMEN WITH IMMUNESYSTEM AND NERVOUSSYSTEM ILLNESSES NEWHOME SALES TUMBLED 201 IN JANUARY PARTLY REFLECTING THE EFFECTS OF COLD WEATHER THE DECLINE FOLLOWS A 13 INCREASE IN DECEMBER SEPARATELY DISPOSABLE INCOME FELL 04 IN JANUARY AFTER DECEMBER'S 06 RISE AMERICA WEST'S OUSTED CEO MICHAEL CONWAY WAS HIRED BY MONEY MANAGER MICHAEL STEINHARDT TO HELP A 200 MILLION BID TO BUY THE CARRIER THE MOVE PITS CONWAY AGAINST THE AIRLINE'S CHAIRMAN WITH WHOM HE BATTLED FOR THE CARRIER'S CONTROL AND WHO SUPPORTS A RIVAL 220 MILLION OFFER THE WHITE HOUSE IS CONSIDERING SELLING QUOTA RIGHTS FOR TEXTILE IMPORTS INTO THE US AS A WAY OF RECOVERING REVENUE LOST BY THE WORLD TRADE PACT FUTURE COMMUNICATIONS IS DISCUSSING A PROPOSED SETTLEMENT OF ITS PORTION OF THE FRAUD LAWSUIT THAT THE SEC FILED AGAINST IT AND ITS TOP OFFICER THE THRIFTBAILOUT AGENCY DOESN'T HAVE TO OBEY LOCAL RENTCONTROL REGULATIONS FOR PROPERTIES IT INTENDS TO SELL A FEDERAL APPEALS COURT RULED IBM PLANS TO CONTRACT OUT MANAGEMENT OF THE MAJORITY OF ITS 29 BILLION EMPLOYEE PENSION FUND IN AN EFFORT TO CUT COSTS AND GET BETTER RETURNS THE SENATE BANKING PANEL'S CHAIRMAN ASKED THE TREASURY AND THE FED TO RESOLVE THEIR DIFFERENCES OVER A PLAN TO STREAMLINE BANK REGULATION AFTER PANEL MEMBERS ENDORSED THE FED EUROPEAN STOCKS ENDED LOWER FOR A SECOND DAY REFLECTING FEARS OF RISING INFLATION AND INTEREST RATES IN TOKYO THE NIKKEI INDEX PLUMMETED 47185 POINTS OR 23 TO 1974477 THE EUROPEAN UNION'S EXECUTIVE COMMISSION ADOPTED A POLICY PAPER THAT REJECTS CALLS FOR GOVERNMENTS TO PHASE OUT PRICE CONTROLS ON DRUGS THE DOCUMENT URGES MEMBER STATES TO BRING THEIR WILDLY DIFFERENT DRUGPRICING POLICIES INTO ALIGNMENT HEWLETTPACKARD IS ADDING A WIRELESS VOICEMAIL FEATURE TO ITS LINE OF PALMTOP COMPUTERS STRENGTHENING ITS POSITION IN THE EMERGING INDUSTRY FOR HANDHELD ELECTRONIC COMMUNICATORS BONDS LEHMAN BROTHERS TREASURY INDEX 536432 UP 1444 COMMODITIES OIL 1476 A BARREL UP NINE CENTS DOW JONES FUTURES INDEX 14492 OFF 005 SPOT INDEX 13082 OFF 053 DOLLAR 10410 YEN OFF 050 17040 MARKS OFF 00055 9403030072 940303 JUDGE FORCES CREWS STRIKING UNION PACIFIC TO CALL OFF WALKOUT OMAHA NEB UNION PACIFIC RAILROAD CO SAID A FEDERAL JUDGE FORCED STRIKING RAILROAD WORK CREWS TO RETURN TO WORK LESS THAN FIVE HOURS AFTER A STRIKE WAS CALLED ON TUESDAY A US DISTRICT COURT JUDGE HERE ISSUED A TEMPORARY RESTRAINING ORDER AT THE COMPANY'S REQUEST THE ORDER IS VALID UNTIL THIS MORNING WHEN A HEARING RELATED TO THE DISPUTE IS SCHEDULED ABOUT 7100 BRAKEMEN CONDUCTORS AND YARDMEN REPRESENTING ONEQUARTER OF THE RAILROAD WORK FORCE WALKED OFF THE JOB IN A DISPUTE ABOUT TRANSPORTATION OF CREWS TO AND FROM TERMINALS IN COMPANYOWNED VEHICLES THE UNITED TRANSPORTATION UNION SAID IT HAD CALLED THE STRIKE BECAUSE UNION PACIFIC RAILROAD WAS REQUIRING THE CREWS TO DRIVE THE VEHICLES BETWEEN THEIR LOCKER ROOMS AND TRAINS THOUGH IT WASN'T PART OF THE WORKER'S DUTIES THIS WALKOUT WAS TOTALLY UNNECESSARY SAID RICHARD K DAVIDSON CHAIRMAN OF UNION PACIFIC CORP PARENT OF THE RAILROAD WHICH OPERATES IN 19 WESTERN STATES IT REALLY BLINDSIDED US HE SAID THE STRIKE HAD DISRUPTED TRANSPORTATION OF EQUIPMENT AND MATERIALS TO THOUSANDS OF RAILROAD CUSTOMERS INCLUDING THE NATION'S AUTO MAKERS 9403030071 940303 ECONOMY NEW HOME SALES SKIDDED 201 DURING JANUARY WEATHER BLAMED FOR DROP AFTER DECEMBER'S GAIN DISPOSABLE INCOME FALLS BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THERE'S MORE EVIDENCE THAT MOTHER NATURE'S COLD SHOULDER WREAKED HAVOC ON THE NATION'S ECONOMY IN JANUARY NEWHOME SALES TUMBLED 201 FROM DECEMBER THE COMMERCE DEPARTMENT SAID TO AN ANNUAL RATE OF 695000 THE DECLINE FOLLOWED A 13 RISE IN DECEMBER THE DROP WAS WEATHERRELATED SAID DAVID BERSON CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION BUT HE ADDED THAT THE RATE OF INCREASE IN DECEMBER WAS TOO BRISK TO BE SUSTAINED MONTH AFTER MONTH THE DECLINE IN NEWHOME SALES FOLLOWS A REPORT EARLIER THIS WEEK THAT EXISTINGHOME SALES ROSE 123 IN JANUARY BUT THAT REPORT BY THE NATIONAL ASSOCIATION OF REALTORS REFLECTS SALES THAT ON AVERAGE TAKE 30 TO 90 DAYS TO CLOSE AND THUS WERE LARGELY UNAFFECTED BY THE WINTER STORMS ACCORDING TO THE COMMERCE DEPARTMENT REPORT THE MIDWEST REGION WAS HARDEST HIT IN JANUARY ALTHOUGH ANALYSTS SAID THE CALIFORNIA EARTHQUAKE ALSO HURT HOME SALES DURING THE MONTH THE EARTHQUAKE ALSO HURT DISPOSABLE PERSONAL INCOME IN JANUARY THE DEPARTMENT SAID AFTER ADJUSTMENTS FOR INFLATION DISPOSABLE INCOME SLIPPED 04 FOLLOWING A RISE OF 06 IN DECEMBER INCOME WAS DESTROYED BY THE LOS ANGELES EARTHQUAKE BUT IF YOU TAKE THAT OUT AND OTHER SPECIAL FACTORS THE JANUARY RATE IS A VERY NORMAL COMFORTABLE RATE SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO THE WEATHER DIDN'T CRIMP SPENDING IN JANUARY THOUGH IT ROSE 05 THE SAME AS IN DECEMBER WITH MOST OF THE PURCHASES IN THE DURABLEGOODS SECTOR IN JANUARY PEOPLE CONTINUED TO GO ABOUT THEIR BUSINESS AND THEIR BUSINESS IS TO SPEND MR DEDERICK SAID AS A RESULT THE SAVINGS RATE OF AMERICANS SLIPPED IN JANUARY TO 33 OF INCOME FROM 42 IN DECEMBER YESTERDAY'S STORM ON THE EAST COAST SUGGESTS WEATHER MAY KEEP HURTING ECONOMIC PERFORMANCE LOOKING OUT MY WINDOW THE WEATHER IS GOING TO CONTINUE TO PLAY A NEGATIVE FACTOR SAID SANDRA SHABER RETAILING ANALYST FOR THE WEFA GROUP IN BALA CYNWYD PA I EXPECT ANOTHER ROUND OF BAD' NUMBERS IN FEBRUARY THE FIGURES HAVE BEEN ADJUSTED FOR PRICE CHANGES AND NORMAL SEASONAL FACTORS HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9403030070 940303 WHO'S NEWS AMAX GOLD INC AMAX GOLD INC ENGLEWOOD COLO ROCKWELL A SCHNABEL 57 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SEVEN MEMBERS MR SCHNABEL COCHAIRMAN OF TRIDENT CAPITAL INC IN LOS ANGELES IS A FORMER DEPUTY SECRETARY OF THE US DEPARTMENT OF COMMERCE AND WAS US AMBASSADOR TO FINLAND FROM 1986 TO 1989 9403030069 940303 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN OFF THE BACK BURNER APPLIANCE SALES KEEP COOKING BUT PRICES JUST SIMMER INCREASED HOME BUILDING AND RENOVATING HELPED LIFT JANUARY SHIPMENTS OVER TARGET AND MARKED THE EIGHTH MONTH OF GAINS SAYS THE ASSOCIATION OF HOME APPLIANCE MANUFACTURERS BUT THE MATURE MARKET SEES MUCH OF ITS NEW GROWTH COMING FROM OPTIONAL REPLACEMENTS SAYS THE GROUP'S BOB HOLDING WHAT'S MORE NEW FEDERAL EFFICIENCY RULES ADD TO THE COST OF GOODS RETAILERS SUCH AS JOSEPH HASSID OF BAY CITIES DISCOUNT IN CALIFORNIA SAY SHOPPERS SCOFF AT PASSTHROUGH PRICE RISES AND DEMAND TO BARGAIN IN MASSACHUSETTS YALE ELECTRIC SALES SAYS REFRIGERATORS AND LAUNDRYAPPLIANCE PRICES ARE UP A BIT BUT IT SPENDS MORE ON PROMOS DUE TO BAD WEATHER WE CAN'T AFFORD TO RAISE PRICES SAYS FRETTER INC IN QUINCY MASS IN TEXAS WALT'S APPLIANCE SUPERMARKET SAYS BUSINESS IS GOOD BUT PRICES ARE PRETTY MUCH THE SAME DITTO SAYS THE SEARS STORE IN IRVING TEXAS WHERE DEMAND HAS BEEN TREMENDOUS LA RETAILERS SAY SUMMERTIME ENERGY REBATES FROM LOCAL UTILITIES ARE A VERY BIG FACTOR IN BUYING DECISIONS MUSIC SOOTHES MRI PATIENTS AND SO DO REFINEMENTS IN THE COSTLY MACHINES MAGNETIC RESONANCE IMAGING MACHINES GET ROOMIER QUICKER AND QUIETER DEPENDING ON MODEL MAGNACOUSTICS AN ATLANTIC BEACH NY FIRM SAYS ITS LATEST MUSICAL SOUND SYSTEM REDUCES MRI NOISE A SCAN WHICH CAN LAST 30 MINUTES TO AN HOUR OR SO REQUIRES A PATIENT TO LIE STILL IN A CYLINDRICAL UNIT CONVENTIONAL RADIOS OR TAPE PLAYERS CAN'T BE USED IN A MAGNETIC FIELD ROBBIE PARRY CHIEF TECHNOLOGIST AT AN MRI CENTER IN PEABODY MASS SAYS THE MUSIC SYSTEM AIDS CLAUSTROPHOBIC PATIENTS SAVING TEST TIME AND THEREFORE COST HE SAYS MUSIC IS OFFERED TO ALL AND 98 OF PEOPLE USE IT MEANWHILE ADVANCED NMR SYSTEMS INC IN WILMINGTON MASS MARKETS INSTASCAN A DEVICE THAT RETROFITS EXISTING MRI UNITS FOR FASTER PROCESSING SALUD THE DEMOGRAPHIC OUTLOOK FOR MEXICO'S BEER MARKET WINS A TOAST THE MEXICAN BEER INDUSTRY HAS GROWN AT AN ANNUAL RATE OF ABOUT 6 SINCE 1983 AND IS EXPECTED TO CONTINUE DOING SOVS A LIKELY DIP IN US VOLUME SAYS BEAR STEARNS ANALYST CARLOS LABOY AMONG OTHER SIGNS HE NOTES 80 OF THE POPULATION IS UNDER 40 BEER IMPORTS ARE LOW AND THE ECONOMY IS GROWING PAINEWEBBER ANALYST EMANUEL GOLDMAN ADDS IF YOU BELIEVE AS I DO PEOPLE ARE SELFINDULGENT CREATURES WHEN YOU CAN AFFORD MORE YOU BUY MORE THE MEXICAN MARKET ALSO IS MAINLY SPLIT BETWEEN TWO BIG PRODUCERS GRUPO MODELO MAKER OF CORONA BEER AND FOMENTO ECONOMICO MEXICANO OR FEMSA NONE OF THIS HAS BEEN LOST ON US BEER MAKERS PHILIP MORRIS'S MILLER UNIT OWNS SOME 8 OF FEMSA AND ANHEUSERBUSCH OWNS 18 OF MODELO WHICH WENT PUBLIC IN MEXICO LAST MONTH AND HAS OPTIONS TO BUY UP TO 35 LATER WE COULDN'T BE HAPPIER WITH THE RELATIONSHIP SAYS JACK PURNELL CHAIRMAN OF ANHEUSERBUSCH INTERNATIONAL ANHEUSER'S STAKE IN MODELO BOUGHT FOR 477 MILLION EIGHT MONTHS AGO WAS WORTH OVER 1 BILLION AS OF THIS WEEK THE TOP TUBES OF 1993 INCLUDED AVON PRODUCTS' UNDER THE SEA SURPRISE SOAP GEL IN A SEETHROUGH PLASTIC TUBE SHOWING A TOY DIVER INSIDE THE TUBE COUNCIL OF NORTH AMERICA ALSO SAYS PFIZER INC'S BRIGHT DAYTIME BEN GAY WON FOR METAL TUBES BESTOFLAMINATES WENT TO DINOPASTE A PERIO PRODUCTS TOOTHPASTE PACKAGED WITH A TOY SLIMMED AND SASSY A HUGE ORGANIZATION SAYS IT IS EMBRACING INFORMATION AGE TECHNOLOGY AND THE POWER OF THE COMPUTER TO REDESIGN ITSELF IT ADDS IT HAS TOTAL WORLDWIDE ASSET VISIBILITY AND THE ORGANIZATIONAL STRUCTURE NEEDED IN THE NEXT CENTURY WHO IS IT THE US ARMY SOMETHING VENTURED JOBS ARE GAINED VENTURECAPITALBACKED FIRMS CREATED JOBS AT A 19 ANNUAL GROWTH RATE IN THE FIVE YEARS ENDED IN 1992 WHILE FORTUNE 500 FIRMS TRIMMED STAFF SAYS A STUDY BY ACCOUNTANTS COOPERS & LYBRAND AND VENTUREONE A SAN FRANCISCO RESEARCH FIRM EXECUTIVES PACK UP AND HEAD FOR LESSONS IN FOREIGN MARKETS THE LIFTING OF THE TRADE EMBARGO WITH VIETNAM FANS INTEREST IN A TRIP THERE BY EXECUTIVES TRAVELING UNDER A UNIVERSITY OF NORTH CAROLINA KENANFLAGLER BUSINESS SCHOOL PROGRAM STANFORD UNIVERSITY'S BUSINESS SCHOOL EXPECTS ITS JOINT PROGRAM WITH THE MONTERREY INSTITUTE OF TECHNOLOGY IN MEXICO TO DRAW MORE MANAGERS THIS YEAR NOW THAT NAFTA'S A FACT IN NEW YORK EXECUTIVES ENROLLED IN COLUMBIA'S MBA PROGRAM MAKE TRACKS FOR GERMANY THE UNIVERSITY OF MICHIGAN A TRAILBLAZER IN THE EXECUTIVEEDUCATION FIELD SAYS SOUTH AFRICA INDONESIA AND SOUTH AMERICA ARE AMONG FUTURE TRAVEL POSSIBILITIES BUT SUCH EXCURSIONS AREN'T CHEAP THE VIETNAM TRIP COSTS SOME 13500 WITHOUT TRANSPORTATION TO ITS HONG KONG STARTING POINT STANFORD CUTS ITS 1994 PROGRAM TO TWO WEEKS FROM THREE SAVING PARTICIPANTS' TIME AND MONEY COLUMBIA GETS 250 TO 300 APPLICANTS A YEAR FOR THE 120 SPOTS IN ITS MBA PROGRAM FOR EXECUTIVES BRIEFS SHAPING THINGS CONTENDERS IN THE NATIONAL RUBE GOLDBERG MACHINE CONTEST TO BE HELD AT PURDUE UNIVERSITY LAFAYETTE IND MUST BUILD A GIZMO THAT CAN BREW A SINGLE CUP OF COFFEE IN LESS THAN FIVE MINUTES AND IN NEW YORK THE COOPERHEWITT NATIONAL MUSEUM OF DESIGN OF THE SMITHSONIAN INSTITUTION SPONSORS A PROGRAM CALLED DESIGN=THE BOTTOM LINE CONVERSATIONS ON BUSINESS DESIGN AND CULTURE 9403030067 940303 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CIT GROUP HOLDINGS INC 150 MILLION DEBT IN TWO PARTS PRICED BY UNDERWRITERS LED BY UBS SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF MEDIUMTERM NOTES DUE FEB 28 1997 WAS PRICED INITIALLY AS 55S AT PAR TO YIELD 5591 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 50 MILLION OF FLOATINGRATE NOTES DUE FEB 28 1997 WAS PRICED INITIALLY AT PAR THE NOTES WILL FLOAT AND PAY MONTHLY AT 10 BASIS POINTS ABOVE ONEMONTH THE LONDON INTERBANK OFFERED RATE THE COUPON WILL BE SET MONDAY BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP CIT IS OWNED BY DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP CIDCO INC INITIAL OFFERING OF 33 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES ELECTRONIC FAB TECHNOLOGY CORP INITIAL OFFERING OF 15 MILLION COMMON SHARES PRICED AT 750 EACH MANAGING UNDERWRITERS WERE DAIN BOSWORTH INC AND STEPHENS INC ROCKTENN CO INITIAL OFFERING OF 43 MILLION COMMON SHARES PRICED AT 1650 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SANTANDER FINANCE LTD 250 MILLION OF NONCUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 79 DIVIDEND YIELD THE 10000 SHARES WERE PRICED AT 25 EACH ACCORDING TO MCM CORPORATEWATCH THE SHARES ARE NONCALLABLE FOR FIVE YEARS AND RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO SANTANDER FINANCE IS A UNIT OF BANCO SANTANDER SA CONNECTICUT 150 MILLION OF SERIES 1994A BONDS FOR TRANSPORTATIONINFRASTRUCTURE PURPOSES APPARENTLY WON BY A JP MORGAN SECURITIES INC GROUP YIELDS RANGE FROM 3 IN 1995 TO 58 IN 2014 BONDS DUE IN 19952008 HAVE A SINGLEA1 RATING FROM MOODY'S AND A DOUBLEAMINUS RATING FROM S&P THE FINANCIAL GUARANTY INSURANCE CO IS INSURING BONDS DUE IN 200914 AND THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FULTON COUNTY GEORGIA SCHOOL DISTRICT 175 MILLION OF IMPROVEMENT BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 31 IN 1995 TO 585 IN 2021 THE BONDS HAVE DOUBLEA RATINGS FROM MOODY'S AND S&P WESTCHESTER COUNTY NEW YORK INDUSTRIAL DEVELOPMENT AGENCY 113 MILLION OF 1994 SERIES A REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 445 IN 1998 TO 575 IN 2009 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING TRUST 199456 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199453 IS BACKED BY THE PRINCIPLEONLY CLASSES OF STRIPS TRUST 251 STRIPS TRUST 237 AND STRIPS TRUST 203 FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REMIC OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING TRUST 199457 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7925 AND WEIGHTED AVERAGE MATURITY OF 349 MONTHS LEHMAN HOME EQUITY LOAN TRUST 2085 MILLION OF ASSETBACKED CERTIFICATES PRICED TO YIELD 25 BASIS POINTS ABOVE THE ONEMONTH LIBOR BY LEHMAN BROTHERS INC THE PARENT COMPANY THE ISSUE LEHMAN HOME EQUITY LOAN TRUST 19941 IS BACKED BY SUBORDINATE CLASSES FROM THREE HOUSEHOLD FINANCE CORP HOMEEQUITY TRANSACTIONS 19881 19891 AND 19892 THE CERTIFICATES IN THE ISSUE HAVE AN AVERAGE LIFE OF 425 YEARS BASED ON A 29 CONDITIONAL PREPAYMENT RATE THEY WERE RATED TRIPLEA BY MOODY'S AND S&P ON A 100 INSURANCE WRAP PROVIDED BY CAPITAL MARKETS ASSURANCE CORP BURNS PHILP & CO AUSTRALIA 125 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 2004 AT ISSUE PRICE PAR VIA MORGAN STANLEY & CO INTERNATIONAL LTD INDICATED SEMIANNUAL COUPON 5 TO 55 BONDS CONVERTIBLE FROM APRIL 30 TO APRIL 30 2004 INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 17 TO 21 CALLABLE AFTER THREE YEARS TERMS FIXED MARCH 10 FEES 25 KINKI NIPPON RAILWAY CO JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 14 2001 WITH EQUITYPURCHASE WARRANTS CARRYING 2 COUPON AT PAR VIA NOMURA BANK SWITZERLAND LTD AND UNION BANK OF SWITZERLAND WARRANTS EXERCISABLE FROM MARCH 28 TO MARCH 2 2001 TO PURCHASE COMPANY SHARES AT EXPECTED 25 PREMIUM TERMS TO BE FIXED TUESDAY FEES 1625 KINKI NIPPON RAILWAY CO JAPAN 10 BILLION YEN OF 36 EUROBONDS DUE JUNE 15 1999 AT ISSUE PRICE 101775 VIA MITSUBISHI TRUST INTERNATIONAL PLC BONDS YIELD 362 AFTER FEES OF 1875 KINKI NIPPON RAILWAY CO JAPAN 10 BILLION YEN OF 335 EUROBONDS DUE JUNE 15 1998 AT ISSUE PRICE 101325 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 342 AFTER FEES OF 1625 ONTARIO HYDRO CANADA ONE BILLION CANADIAN DOLLARS OF GLOBAL FLOATINGRATE NOTES DUE MARCH 16 1999 AT ISSUE AND REOFFER PRICE 9964 VIA MERRILL LYNCH WOOD GUNDY INC GOLDMAN SACHS AND SCOTIA MCLEOD INC PAYABLE QUARTERLY AT THREEMONTH CANADIAN BANKERS' ACCEPTANCE RATE FLAT GUARANTOR PROVINCE OF ONTARIO FEES 015 9403030066 940303 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ONE OF THE DOWNSIDES OF USING A LAPTOP COMPUTER ON THE ROAD IS THAT IT CAN BE A REAL PAIN TO MAKE SURE IT CONTAINS THE SAME PROGRAMS AND DATA FILES YOU'D NORMALLY USE ON THE DESKTOP COMPUTER AT THE OFFICE BEFORE A TRIP YOU HAVE TO LOAD UP THE LAPTOP WITH ALL THE FILES YOU NEED FROM YOUR REGULAR DESKTOP PC AND WHEN YOU RETURN YOU HAVE TO REVERSE THE PROCESS DUMPING ALL THE NEW AND REVISED FILES YOU CREATED ON THE LAPTOP BACK INTO YOUR MAIN PERSONAL COMPUTER WHEN ONLY A FEW ITEMS ARE INVOLVED YOU CAN SIMPLY COPY THE RELEVANT OFFICE FILES ONTO A FLOPPY DISK POP IT INTO THE LAPTOP AND COPY THE FILES FROM THAT FLOPPY ONTO THE LAPTOP'S HARD DISK DRIVE BUT IN MANY CASES THERE ARE TOO MANY FILES AND PROGRAMS TO FIT ONTO ONE OR TWO FLOPPIES AND THE NEWEST LIGHTEST LAPTOPS DON'T EVEN HAVE BUILTIN FLOPPYDISK DRIVES NOW TRAVELING SOFTWARE OF BOTHELL WASH THE LEADING MAKER OF FILE TRANSFER SOFTWARE HAS INTRODUCED A NEW PRODUCT CALLED LAPLINK WIRELESS THAT LETS YOU SIMPLY BEAM FILES AT HIGH SPEED STAR TREKSTYLE FROM COMPUTER TO COMPUTER THROUGH THE AIR IT'S NOT AS SIMPLE AS IT SOUNDS NOTHING IS IN THE WONDERFUL WORLD OF COMPUTERS BUT IT'S A REAL STEP FORWARD FROM CURRENT FILETRANSFER METHODS FOR YEARS POWER USERS HAVE SOLVED THE FILETRANSFER PROBLEM WITH AN INEXPENSIVE UTILITY PROGRAM FROM TRAVELING SOFTWARE CALLED LAPLINK LAPLINK LETS YOU CONNECT THE TWO COMPUTERS WITH A CABLE AND THEN MOVE LARGE NUMBERS OF PROGRAMS AND DATA FILES BETWEEN THEM AT SPEEDS MUCH FASTER THAN CAN BE ACHIEVED BY COPYING FILES TO AND FROM FLOPPIES IT DISPLAYS SIDEBYSIDE LISTS OF THE CONTENTS OF THE TWO MACHINES SO YOU CAN PICK AND CHOOSE WHICH FILES TO COPY FROM ONE MACHINE TO THE OTHER IN EFFECT IT CREATES A TINY TEMPORARY TWOCOMPUTER NETWORK FOR MASS FILE TRANSFERS LAPLINK HAS BEEN A BLESSING FOR THOSE WHO KNOW HOW TO USE IT IT'S GREAT NOT ONLY FOR LAPTOPS BUT FOR SETTING UP NEW DESKTOP COMPUTERS WITH THE NEEDED PROGRAMS AND FILES AND THE LATEST VERSION CAN EVEN WORK OVER PHONE LINES BUT LAPLINK ISN'T EXACTLY FOR NOVICES OR EVEN MOST AVERAGE NONTECHNICAL USERS IT IS AN OLDSTYLE PROGRAM NOT TAILORED TO MICROSOFT'S WINDOWS SYSTEM IT REQUIRES A FIRM UNDERSTANDING OF THE IBMCOMPATIBLE PC'S PRIMITIVE SYSTEM FOR NAMING DISK DRIVES AND THE DIRECTORIES OF FILES WITHIN THEM IT FORCES YOU TO UNDERSTAND THE COMPLEX DYNAMICS OF THE CONNECTORS ON THE BACK OF THE MACHINE AND THEN MAKES YOU SQUEEZE BEHIND AND UNDER DESKS PLUGGING IN THE CABLES YELLOW FOR PARALLEL PORTS BLUE FOR SERIAL EVEN AFTER RELYING ON LAPLINK FOR YEARS I STILL SWEAR AT IT NOW AND THEN SO TRAVELING SOFTWARE HAS JUST BROUGHT OUT A NEW VERSION OF LAPLINK THAT AIMS TO MAKE THE PROCESS MUCH EASIER THE SOFTWARE IS A SIMPLIFIED WINDOWS PROGRAM THAT MAKES USE OF ICONS AND OF THE FAMILIAR IF LIMITED WINDOWS FILE MANAGER TO MOVE FILES BETWEEN TWO MACHINES BEST OF ALL THE CABLES HAVE BEEN ELIMINATED THE NEW 300 LAPLINK WIRELESS LINKS TWO MACHINES USING TINY RADIO MODULES THAT CONNECT TO EACH COMPUTER AND SHOOT FILES BETWEEN THEM THROUGH THE AIR AT DISTANCES UP TO 30 FEET EVEN THROUGH WALLS I'VE TRIED IT AND IT WORKS THE RADIO TRANSMITTERS CALLED AIRSHARE UNITS AND MADE BY NATIONAL SEMICONDUCTOR WEIGH JUST THREE OUNCES AND ARE SMALLER THAN A PACK OF CIGARETTES THEY PLUG INTO THE SERIAL PORT ON EACH MACHINE AND CAN DRAW POWER IN SEVERAL WAYS ON A DESKTOP MACHINE IT'S BEST TO USE THE INCLUDED AC ADAPTOR ON A LAPTOP YOU CAN USE A SNAPON BATTERY PACK WHICH TAKES A COMMON NINEVOLT BATTERY OR YOU CAN HOOK THE AIRSHARE INTO THE LAPTOP'S MOUSE PORT WHICH PROVIDES ENOUGH JUICE TO RUN IT WITH ALL THESE CONNECTIONS THE AIRSHARE CAN DANGLE IRRITATINGLY FROM A LAPTOP SO TRAVELING SOFTWARE SUPPLIES LITTLE VELCRO STRIPS THAT LET YOU STICK IT ONTO THE SIDE OR BACK OF THE MACHINE THE BUILTIN SOFTWARE DOESN'T HAVE AS MANY FEATURES AS REGULAR LAPLINK BUT IT'S EASIER TO USE FOR INSTANCE TO ACTIVATE THE CONNECTION YOU JUST CLICK ON A PICTURE OF A LIGHT SWITCH LABELED ON AND OFF THE PROGRAM AUTOMATICALLY SEEKS OUT THE OTHER AIRSHAREEQUIPPED COMPUTER AND ESTABLISHES THE LINK THROUGH THE ETHER ONCE CONNECTED YOU CAN MANUALLY MOVE FILES AROUND OR USE AN AUTOMATED UTILITY CALLED SYNCHRO PLUS WHICH SYNCHRONIZES THE FILES IN ANY SECTION OF A HARD DISK SO EACH MACHINE HAS THE SAME VERSIONS OF THE SAME FILES YOU CAN EVEN PRINT A FILE THAT'S ON THE LAPTOP WIRELESSLY USING A PRINTER CONNECTED TO THE DESKTOP MACHINE BECAUSE OF THE ANTIQUATED DESIGN OF IBMCOMPATIBLE PCS EVEN LAPLINK WIRELESS CAN INVOLVE SOME TRICKY FIDDLING WITH SERIAL PORT CONFIGURATIONS IN ORDER TO PLUG IN THE AIRSHARE TRANSMITTERS YOU MAY EVEN HAVE TO TEMPORARILY REMOVE ANOTHER DEVICE LIKE A MODEM THAT NORMALLY OCCUPIES A SERIAL PORT AND YOU MAY HAVE TO EXPERIMENT WITH THE BEST LOCATIONS FOR THE TRANSMITTERS AND THE BEST OF THE THREE RADIO CHANNELS THEY PROVIDE TO GET THE CLEAREST WIRELESS CONNECTION ESPECIALLY OVER A DISTANCE OR FROM ANOTHER ROOM FOR THOSE REASONS LAPLINK WIRELESS ISN'T SOMETHING ABSOLUTE COMPUTER NOVICES WOULD FIND EASY TO USE BUT IT SHOULD MAKE TRAVELING WITH A LAPTOP EASIER FOR MOST OTHER USERS EVEN THOSE WHO AREN'T TECHNICALLY ADEPT NOW THAT I HAVE IT I'M THINKING OF USING THOSE OLD YELLOW AND BLUE CABLES AS FASHION ACCESSORIES OR MAYBE BUNGEE CORDS THE POSSIBILITIES ARE ENDLESS 9403030065 940303 PRUDENTIAL ADDS LEGAL RESERVES OF 100 MILLION INJECTION WOULD LIFT FUND FOR SOURED PARTNERSHIPS TO ABOUT 865 MILLION BY MICHAEL SICONOLFI AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC SAYS IT PLANS TO SET ASIDE AN ADDITIONAL 100 MILLION IN RESERVES THIS YEAR TO COVER LEGAL COSTS FROM LIMITEDPARTNERSHIP CLAIMS THE RESERVES WOULD BRING PRUDENTIAL'S TOTAL LEGAL TAB FROM SOURED PARTNERSHIPS TO AS MUCH AS 865 MILLION THE NATION'S FOURTHLARGEST BROKERAGE FIRM ALREADY HAS PAID 330 MILLION INTO A RESTITUTION FUND AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS WHO HAD ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING 815 BILLION OF PARTNERSHIPS IN THE 1980S PREVIOUSLY PRUDENTIAL HAD PAID OUT A TOTAL OF 270 MILLION TO DISGRUNTLED PARTNERSHIP INVESTORS AND IT HAS 65 MILLION REMAINING IN PARTNERSHIP RESERVES PRUDENTIAL ALSO HAS PAID AS MUCH AS 100 MILLION IN LEGAL COSTS OVER THE PAST THREE YEARS MEANWHILE PARENT PRUDENTIAL INSURANCE CO OF AMERICA WHICH REPORTED THAT ITS 1993 EARNINGS DOUBLED REFUSED TO OFFER UNLIMITED FINANCIAL SUPPORT IF PRUDENTIAL SECURITIES CAN'T PAY OUT INVESTOR CLAIMS SO FAR PRUDENTIAL SECURITIES' PROFIT HAS BEEN MORE THAN ENOUGH TO COVER THE RESERVES BUT IT'S UNCLEAR HOW MUCH RESTITUTION THE BROKERAGE UNIT WILL END UP PAYING REGULATORS SAY THE 330 MILLION IS MERELY A DOWN PAYMENT ARE WE WILLING TO BANKRUPT THE PRU INSURANCE COMPANY I CAN'T SAY YES TO THAT SAID ROBERT C WINTERS PRUDENTIAL INSURANCE'S CHAIRMAN AND CHIEF EXECUTIVE I HAVE NO CAP IN MIND HE SAID ALTHOUGH MR WINTERS SAID HE THOUGHT THAT 330 MILLION WOULD BE SUFFICIENT TO COVER INVESTOR CLAIMS HE ADDED IF IT'S 50 MILLION OVER THEN CERTAINLY WE'D COVER IT THE DISCLOSURE COMES AS THE US ATTORNEY'S OFFICE IN MANHATTAN INVESTIGATES ALLEGATIONS THAT PRUDENTIAL BROKERS MAY HAVE MISLED INVESTORS ABOUT THEIR LEGAL OPTIONS INVOLVING PARTNERSHIP SETTLEMENTS AS PREVIOUSLY REPORTED PROSECUTORS ARE EXAMINING WHETHER BROKERS AT PRUDENTIAL'S BEHEST IMPROPERLY PRODDED INVESTORS TO ACCEPT SMALL SETTLEMENTS INVOLVING PORTFOLIOS OF PARTNERSHIPS RATHER THAN ADVISING THEM OF OTHER LEGAL OPTIONS PEOPLE FAMILIAR WITH THE MATTER SAID PRUDENTIAL DISPUTES THE CLAIMS AT THE SAME TIME PRUDENTIAL SECURITIES EXPRESSED SUPPORT FOR TWO OF ITS SENIOR LEGAL EXECUTIVES WHO ARE BEING QUESTIONED BY CRIMINAL PROSECUTORS IN THE INVESTIGATION OF THE FIRM NEITHER OF THE EXECUTIVES LOREN SCHECHTER PRUDENTIAL'S RECENTLY DEPOSED GENERAL COUNSEL AND FRANK GIORDANO FORMER PARTNERSHIP CHIEF WHO NOW IS PRUDENTIAL'S MUTUALFUND GENERAL COUNSEL HAD ANYTHING TO HIDE NEITHER OF THEM HAD ANY CULPABILITY IN THE PARTNERSHIP MESS SAID HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE OFFICER PRUDENTIAL INSURANCE SAYS IT HASN'T ANY PLANS TO SHED ITS BROKERAGE UNIT OR LEAVE THE BROKERAGE BUSINESS SEPARATELY MR WINTERS 62 YEARS OLD SAID HE HAD NO PLANS TO RETIRE SOON AND SAID HE HASN'T RECEIVED ANY PRESSURE FROM PRUDENTIAL'S BOARD TO STEP DOWN AMID THE PARTNERSHIP MESS PRUDENTIAL HAS MANDATORY RETIREMENT AT AGE 65 MR WINTERS SAID HE WAS SADDENED THAT THE PUBLIC IMAGE OF THE PRU HAS SUFFERED UNDER MY WATCH AND HE APOLOGIZED TO THE INVESTORS WHO SUFFERED PARTNERSHIP LOSSES WE HAVE HURT TOO MANY OF OUR CUSTOMERS BUT THERE ARE 50 MILLION CUSTOMERS OF THE PRU PRUDENTIAL INSURANCE BASED IN NEWARK NJ IS THE COUNTRY'S LARGEST LIFEINSURANCE COMPANY LAST YEAR IT DOUBLED ITS PROFIT THE MUTUAL INSURER OWNED BY POLICYHOLDERS RATHER THAN BY SHAREHOLDERS SAID EARNINGS ROSE TO 766 MILLION FROM 347 MILLION THE PROFIT HELPED BOOST CAPITAL TO 1069 BILLION FROM 982 BILLION LIFE INSURANCE AND ANNUITY SALES ROSE 28 TO 27 BILLION FROM 21 BILLION PROPERTY AND CASUALTY SALES FELL 47 TO 441 MILLION FROM 463 MILLION BECAUSE OF EFFORTS TO REDUCE EXPOSURE IN HURRICANEPRONE AREAS THE RETURN ON PRUDENTIAL'S INVESTMENTS FELL TO 83 FROM 88 BECAUSE OF FALLING INTEREST RATES THE AMOUNT OF MONEY PRUDENTIAL MANAGES FOR PENSION FUNDS AND OTHER INSTITUTIONS ROSE 7 TO 113 BILLION BUT NEW BUSINESS FELL BECAUSE OF PRUDENTIAL'S DECISION TO SELL FEWER GUARANTEED INVESTMENT CONTRACTS THE COMPANY'S HEALTHCARE BUSINESS GREW SHARPLY WITH THE NUMBER OF INDIVIDUALS ENROLLED IN PRUDENTIAL'S MANAGEDCARE NETWORKS RISING 20 TO 38 MILLION AS REPORTED PRUDENTIAL SECURITIES POSTED 1993 NET INCOME OF 145 MILLION DOWN JUST 3 FROM 1992 EARNINGS DESPITE SETTING ASIDE MORE THAN 430 MILLION IN RESERVES FOR PARTNERSHIP LEGAL CLAIMS 9403030064 940303 REVIEW & OUTLOOK EDITORIAL ASIDES WHO IS WEBSTER HUBBELL VI THE WAR OF THE ROSES SEEMS TO HAVE ERUPTED IN ARKANSAS WITH THE WASHINGTON POST REPORTING THAT THE ROSE LAW FIRM IS INVESTIGATING BILLING IRREGULARITIES BY FORMER PARTNER WEBSTER HUBBELL NOW ASSOCIATE ATTORNEY GENERAL AND WELL YOU KNOW THE REST THE JUSTICE DEPARTMENT YESTERDAY ISSUED MR HUBBELL'S STATEMENT DECLARING I DID NOT OVERBILL THE RTC OR OTHER CLIENTS AND ASSURING CURIOSITYSEEKERS THAT THE INQUIRY IS IN NO WAY OUT OF THE ORDINARY OVER AT THE WHITE HOUSE PRESS SECRETARY DEE DEE MYERS DESCRIBED PRESIDENT CLINTON'S REACTION HE STANDS BY WEBB SHE SAID CHIEF OF STAFF MACK MCLARTY HAD QUESTIONED HUBBELL ABOUT THE REPORT AND RECEIVED ASSURANCES FROM WEBB THAT IT WASN'T TRUE AND THE PRESIDENT IS SATISFIED BY THAT 9403030063 940303 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE GERMAN CABINET APPROVED BUILDING A HIGHSPEED MAGNETIC RAILROAD BETWEEN HAMBURG AND BERLIN WITH SERVICE TO BEGIN BY THE YEAR 2005 THE 52 BILLION PROJECT COULD INVOLVE 10000 JOBS BOOSTING THE ECONOMY AND LEADING TO A TECHNOLOGICAL EDGE FOR SALES OF THE SYSTEM ABROAD THE TRANSRAPID TRAIN WILL TRAVEL ON A MAGNETICALLY GENERATED AIR CUSHION AT UP TO 270 MILES PER HOUR MAKING THE 185MILE JOURNEY IN LESS THAN AN HOUR VS 3 1/2 HOURS ON REGULAR TRAINS THE PROTOTYPE WAS DEVELOPED BY MAGNETSCHNELLBAHN BERLINHAMBURG AG A CONSORTIUM OF THYSSEN INDUSTRIE AG SIEMENS AG AND AEG AG THAT HOLDS PATENTS ON THE SYSTEM THOUGH CONTRACTS WILL BE AWARDED THROUGH PUBLIC BIDDING CONSORTIUM MEMBERS EXPECT SEVERAL BILLION MARKS OF ORDERS UNDER THE CABINET FINANCING PLAN THE GERMAN GOVERNMENT WILL PAY FOR TRACKSYSTEM COSTS OF 328 BILLION WHILE OPERATINGCOMPANY BORROWING COULD TOTAL 193 BILLION FOR BUILDING THE TRAINS THE CABINET ACTION REQUIRES PARLIAMENTARY APPROVAL OPPONENTS ANTICIPATE COST OVERRUNS AND TECHNICAL PROBLEMS AND FAVOR SPENDING INSTEAD TO IMPROVE THE UNPROFITABLE DEUTSCHE BAHN RAIL SYSTEM THE DELHI HIGH COURT CLEARED THE WAY FOR ACTION TO ALLOW FOREIGN PUBLICATIONS IN INDIA IT REJECTED PETITIONS TO STOP THE GOVERNMENT FROM LIBERALIZING A FOURDECADEOLD BAN ON ENTRY BY FOREIGN NEWSPAPERS SINCE INDIA IN 1991 INTRODUCED REFORMS TO OPEN UP ITS SOCIALISTORIENTED ECONOMY FOREIGN MEDIA HAVE SOUGHT TO ENTER THE THRIVING MARKET EITHER ON THEIR OWN OR THROUGH JOINT VENTURES AIR FRANCE AGREED TO SELL ITS 191 STAKE IN TROUBLED CZECHOSLOVAK AIRLINE TO KONSOLIDACNI BANK AVIATION OFFICIALS IN PRAGUE SAID A PRICE WASN'T SET FOR THE SHARES WHICH THE FRENCH FLAG CARRIER BOUGHT FOR 30 MILLION IN 1992 AIR FRANCE DECLINED TO COMMENT THE BUYER IS A CZECH GOVERNMENT INSTITUTION THAT HELPS STATE COMPANIES IN TRANSITION THE CZECH GOVERNMENT HAS BEEN UNHAPPY WITH AIR FRANCE'S ROLE IN RESTRUCTURING THE AIRLINE WHICH HAD A RECORD 402 MILLION LOSS LAST YEAR AND IT MAY SEEK A NEW FOREIGN PARTNER THE VALUE OF FOREIGN INVESTMENT PROPOSALS APPROVED BY THE AUSTRALIAN GOVERNMENT IN THE FISCAL YEAR ENDED LAST JUNE 30 JUMPED 52 TO 1711 BILLION FROM 1127 BILLION A YEAR EARLIER IN ITS ANNUAL REPORT THE FOREIGN INVESTMENT REVIEW BOARD SAID THE NUMBER OF PROJECTS INCREASED 21 TO 3602 FROM 2981 MANUFACTURING DEALS SHOWED THE GREATEST GROWTH US PROPOSALS THAT WON APPROVAL MORE THAN DOUBLED IN VALUE TO 278 BILLION FROM 135 BILLION RUSSIA'S GAZPROM NATURALGAS MONOPOLY THREATENED TO CUT OFF SUPPLIES TO UKRAINE BELARUS AND MOLDOVA STARTING TODAY UNLESS THEY PAY FOR GAS ALREADY RECEIVED THE THREE FORMER SOVIET REPUBLICS OWE RUSSIA HUNDREDS OF BILLIONS OF RUBLES FOR ENERGY AND GAZPROM HAS THREATENED TO INTERRUPT THEIR SUPPLIES AND HAS REDUCED SHIPMENTS IN EFFORTS TO GET PAYMENTS GAZPROM'S MAIN EXPORT PIPELINE TO EUROPE RUNS THROUGH UKRAINE WHICH THE ITARTASS NEWS AGENCY SAID HAS BEEN SIPHONING OFF GAS MEANT FOR WESTERN CUSTOMERS TURKMENISTAN ALSO A MAJOR GAS SUPPLIER CUT UKRAINE OFF ON FEB 20 OFFERING A CHANCE TO MEET THE FABLED LOCH NESS MONSTER UP CLOSE A SCOTTISH COMPANY NEXT MONTH WILL START RUNNING SUBMARINE TRIPS AT 105 A PERSON TO LOOK FOR THE CREATURE THE INVERNESS TOURIST BOARD SAID BUT THE VIEW FROM THE SPECIALLY ADAPTED RESEARCH SUBMARINE EVEN WITH ITS POWERFUL HEADLIGHTS IS LIKELY TO BE MURKY IN THE LAKE THE DEEPEST BODY OF WATER IN BRITAIN HUNTS FOR THE LOCH NESS MONSTER BEGAN IN 1933 AFTER A REPORTED SIGHTING OF A 30FOOTLONG BEAST WITH TWO HUMPS A SNAKELIKE HEAD AND FLIPPERS THE MONSTER'S EXISTENCE HAS NEVER BEEN PROVED NOW THAT FINLAND AND SWEDEN HAVE AGREED TO JOIN THE EUROPEAN UNION AND NORWAY COULD FOLLOW SUIT THEY EACH MUST PERSUADE VOTERS TO APPROVE THE PACTS AUSTRIA'S PACT MAY GO MORE EASILY OPINION POLLS IN THE PAST YEAR HAVE SHOWN THAT NONE OF THE NORDIC COUNTRIES HAS MUSTERED A MAJORITY IN FAVOR OF JOINING THE 12NATION TRADE BLOC FOR NORWAY THE ISSUE OF EU NATIONS' ACCESS TO ITS FISHING GROUNDS IS A HUGE OBSTACLE IN 1972 NORWAY REJECTED EU MEMBERSHIP NOW OPPONENTS DOMINATE 42 TO 28 THE TIMING OF EACH REFERENDUM COULD BE CRUCIAL NORWEGIAN OPPONENTS WANT BALLOTING ON THE SAME DAY IN ALL THREE COUNTRIES SO ONE CAN'T INFLUENCE ANOTHER SWEDISH PROPONENTS WANT FINLAND TO GO FIRST BECAUSE VOTER RATIFICATION THERE SEEM MOST LIKELY AS A WAY TO HELP HEAL ITS ECONOMY FINNS BACK EU MEMBERSHIP 4127 SWEDEN'S ENTIRE ECONOMIC PLAN FOR THE PAST THREE YEARS HAS BEEN LINKED TO PREPARING FOR EU ENTRY SWEDEN MAY COMBINE ITS REFERENDUM WITH SEPT 18 PARLIAMENTARY ELECTIONS THAT WOULD MAKE THE EU VOTE BINDING OPPONENTS NOW LEAD 4235 RUSSIA AND UZBEKISTAN SIGNED COOPERATION AGREEMENTS ON ECONOMIC AND FOREIGN POLICIES AND MILITARY MATTERS SWITZERLAND'S NEW LEGISLATION TO COMBAT ORGANIZED CRIME MAY TAKE EFFECT JULY 1 GRANTING AUTHORITIES BROADER POWERS TO CONFISCATE ASSETS AND ALLOWING THE FINANCIAL SECTOR TO REPORT SUSPICIOUS ASSETS WITHOUT VIOLATING PROFESSIONAL SECRECY 9403030060 940303 HOUSE PANEL ADVANCES BILL AFFECTING BELL PHONE FIRMS WASHINGTON ANOTHER HOUSE PANEL APPROVED LEGISLATION THAT WOULD LET THE REGIONAL BELL TELEPHONE COMPANIES MANUFACTURE TELECOMMUNICATIONS EQUIPMENT AND PROVIDE LONGDISTANCE SERVICE THE ACTION BY THE HOUSE JUDICIARY COMMITTEE'S ECONOMIC AND COMMERCIAL LAW SUBCOMMITTEE ADVANCES THE BILL TO THE FULL JUDICIARY COMMITTEE BUT THE LEGISLATION IS LIKELY TO BE CHANGED BEFORE THE FULL PANEL ACTS ACCORDING TO JUDICIARY CHAIRMAN JACK BROOKS D TEXAS MR BROOKS ONE OF THE BILL'S AUTHORS SAID HE PLANS TO MEET SOON TO IRON OUT CHANGES WITH ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH WHOSE PANEL SHARES JURISDICTION ON THE ISSUE WITH THE JUDICIARY COMMITTEE THE LEGISLATION A COMPROMISE WORKED OUT BETWEEN REPS BROOKS AND DINGELL IS MOVING ON A FAST TRACK AND THEY ARE TRYING TO PREVENT THEIR PANELS FROM DIVERGING WHEN THEY TAKE IT UP ON TUESDAY THE COMMERCE COMMITTEE'S TELECOMMUNICATIONS SUBCOMMITTEE APPROVED IT WITHOUT MAKING CHANGES MR BROOKS SAID THERE ARE SEVERAL AREAS IN THE LONGDISTANCE AREA THAT I THINK NEED TO BE REVISITED WITH CARE AND SENSITIVITY 9403030059 940303 CORRECTIONS & AMPLIFICATIONS RAYONIER INC IS BEING ADDED TO THE FORESTPRODUCTS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX NOT ITS SUBSIDIARY RAYONIER TIMBERLANDS LP AS ERRONEOUSLY REPORTED IN AN ARTICLE YESTERDAY 9403030058 940303 MARKETING PRIVATE LABELS REIGN IN BRITISH GROCERIES BY ELEENA DE LISSER AND KEVIN HELLIKER STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON FROM BLACKBERRY JAM TO VACUUMCLEANER BAGS TO SMOKED SALMON AND SUNDRIED TOMATOES PRIVATELABEL PRODUCTS DOMINATE THE GROCERY STORES IN THE UNITED KINGDOM UNLIKE THEIR POOR COUSINS IN AMERICA THEY HAVE THE CHOICEST SPOTS ON THE GROCERY SHELF BEST OF ALL THEY ARE PROFITABLE SO PROFITABLE THAT THEY ARE A MAJOR REASON WHY BRITISH RETAILERS BOAST OPERATING PROFIT MARGINS AS HIGH AS 8 OR EIGHT TIMES THE PROFIT MARGINS OF THEIR US COUNTERPARTS THIS KIND OF SUCCESS HAS GENERATED LOTS OF INTEREST ACROSS THE ATLANTIC ALREADY A&P SAFEWAY AND A HANDFUL OF OTHER US GROCERS ARE TRYING TO TAKE A MORE BRITISH APPROACH TO THEIR PRIVATELABEL BRANDS SPRUCING UP BOTH MARKETING AND PACKAGING RETAILERS IN THE US ARE AGGRESSIVELY ASSUMING THE POSTURE THAT YOU SEE IN THE UK THAT OF PRODUCT MARKETERS SAYS BRIAN SHAROFF PRESIDENT OF THE NEW YORKBASED PRIVATE LABEL MANUFACTURERS ASSOCIATION AND FOREIGN RETAILERS WITH US GROCERY INTERESTS ARE ALSO LOOKING AT WAYS TO BOOST PRIVATELABEL SALES IN THE US THERE IS TREMENDOUS OPPORTUNITY FOR PRIVATE LABEL IN AMERICA SAYS DAVID SAINSBURY CHAIRMAN OF J SAINSBURY PLC BRITAIN'S LARGEST GROCERY CHAIN PRIVATE LABELS CONSTITUTE ONLY ABOUT 14 OF TOTAL GROCERY SALES IN THE US COMPARED WITH ABOUT 36 IN BRITAIN THE BRITISH MARKET HAS HISTORICALLY BEEN MUCH MORE CONDUCIVE TO PRIVATE LABELS THAN IN THE US BECAUSE THERE IS LESS NATIONAL ADVERTISING BRANDNAME GOODS NEVER GOT THE SAME FOOTHOLD THERE AND BECAUSE THE BRITISH BROADCASTING CORP HAS NEVER ACCEPTED ADVERTISING TELEVISION COMMERCIALS ARE ALMOST NONEXISTENT TODAY ONLY TWO OF THE COUNTRY'S FOUR MAJOR CHANNELS CARRY ADS MOREOVER BRITAIN'S GROCERY INDUSTRY IS MUCH MORE CONSOLIDATED ITS FIVE LARGEST CHAINS DO 62 OF THE COUNTRY'S BUSINESS COMPARED WITH 21 IN THE US GIVING THEM MORE CLOUT WITH MANUFACTURERS IN THE US GROCERS HAVE LOOKED AT THEMSELVES AS LANDLORDS OF SHELF SPACE NOT FOOD MARKETERS SAYS MARK HUSSON AN ANALYST AT JP MORGAN SECURITIES INC IN THE UK GROCERS LIKE SAINSBURY ARE ALSO MARKETERS SAINSBURY WITH SOME 420 STORES THROUGHOUT THE COUNTRY AVIDLY DEVELOPS NEW PRODUCTS LAUNCHING 1400 TO 1500 NEW PRIVATELABEL ITEMS EACH YEAR AND WEEDING OUT HUNDREDS OF OTHERS THAT ARE NO LONGER POPULAR THE TYPICAL SAINSBURY STORE HAS ABOUT 16000 PRODUCTS OF WHICH 8000 CARRY THE SAINSBURY LABEL CURRENTLY SAINSBURY IS TARGETING LARGEVOLUME CATEGORIES DOMINATED BY ONE OR TWO ESTABLISHED BRANDS WITH BIG ADVERTISING BUDGETS IN THE BEVERAGE AISLE SAINSBURY HAS DEVELOPED ITS OWN LEMONLIME FLAVORED GIO SOFT DRINK TO COMPETE WITH 7UP AND COCACOLA'S SPRITE ON THE CANDY SHELF ITS DOUBLE TAKE WAFER CANDY IS A DIRECT ATTACK ON NESTLE'S KIT KAT SAINSBURY LAUNCHED ITS OWN NOVON LAUNDRY DETERGENT ABOUT TWO YEARS AGO IN ITS FIRST YEAR NOVON SAW SALES CLIMB PAST THE COMPETITION OF PROCTER & GAMBLE CO AND UNILEVER PLC TO BECOME THE TOPSELLING DETERGENT IN SAINSBURY STORES WHAT THIS HAS DONE IS INCREASED THEIR GROSS MARGINS AND INCREASED THEIR TERMS OF TRADE AND BARGAINING POWER WITH THESE TWO MANUFACTURERS SAYS TONY MACNEARY DIRECTOR OF FOODRETAILING RESEARCH AT NATWEST SECURITIES IN LONDON AT A SAINSBURY STORE IN THE LONDON BOROUGH OF ISLINGTON THE INSTORE PROMOTIONS FOCUS ALMOST ENTIRELY ON SAINSBURY BRAND GOODS OF 25 SIGNS HANGING ABOVE THE AISLES PROMOTING SPECIFIC ITEMS 21 TOUT SAINSBURY GOODS RANGING FROM RICE AND PASTA TO MILK AND BREAD UK GROCERS KEEP TIGHT CONTROL OF THEIR SHELF SPACE SINCE THEIR OWN PRODUCTS ARE SO MUCH MORE PROFITABLE WITH GROSS MARGINS THAT ARE ROUGHLY TWICE THOSE OF BRAND PRODUCTS THEY ARE CHOOSY ABOUT WHO THEY LET IN LOWERING THE BAR FOR ONLY THE BIGGEST NAME BRANDS PRIVATE LABEL IN EUROPE MAKES THE MANUFACTURERS THINK VERY CAREFULLY ABOUT WHAT THEY CAN DO TO DISTINGUISH THEIR PRODUCTS SAYS RON BOTTRELL SPOKESMAN FOR QUAKER OATS CO ACTMEDIA A US MARKETING CONCERN ENTERED THE BRITISH MARKET IN 1990 AND QUICKLY ENCOUNTERED PROBLEMS ITS BRITISH OFFICE WHICH SOUGHT TO SELL INSTORE AD SPACE TO MANUFACTURERS AND RETAILERS LASTED LESS THAN TWO YEARS WE COULDN'T PENETRATE EITHER SAINSBURY OR TESCO SAYS WAYNE LOCURTO PRESIDENT OF ACTMEDIA A UNIT OF DALLASBASED HERITAGE MEDIA CORP THEY'RE TOO MUCH INTO THEIR OWN BRANDS RECENTLY A CONSORTIUM CALLED THE BRITISH PRODUCERS AND BRANDS OWNERS GROUP ASKED THE HOUSE OF LORDS TO DEVELOP LEGISLATION THAT WOULD DISSUADE MAKERS OF PRIVATELABEL PRODUCTS FROM COPYING THE OVERALL APPEARANCE OF BRANDED ITEMS THE CONSORTIUM INCLUDES PROCTOR & GAMBLE AND UNILEVER AMONG OTHERS MEANTIME ENGLISH CONSUMERS HAVE BECOME INCREASINGLY FASCINATED BY FOREIGN FOOD DISCOUNTERS STORMING BRITAIN AND THE BRITISH MARKET IS NOT IMMUNE TO PRICE WARS TESCO PLC THE UK'S SECONDLARGEST GROCERY CHAIN RECENTLY INTRODUCED A LOWPRICED TESCO VALUE LINE TO COMPETE AGAINST THE FOREIGN DISCOUNTERS THE PRICES ON THIS LINE ARE AS MUCH AS 50 LOWER THAN PRICES IN THE TESCO OWN LABEL A STRATEGY THAT MIGHT UNDERMINE THE STRENGTH OF THE COMPANY'S BETTER PRIVATELABEL ITEMS THEY COULD BE DEGRADING THE STRENGTH OF THE TESCO NAME SAYS MR MACNEARY THE FOOD RETAILING ANALYST 9403030056 940303 BUSINESS BRIEF ZAPATA CORP BOARD PROPOSES DIVIDEND 1FOR5 REVERSE STOCK SPLIT ZAPATA CORP HOUSTON SAID ITS BOARD RECOMMENDED A 1FOR5 REVERSE SPLIT OF COMMON STOCK AND AN ANNUAL DIVIDEND OF 14 CENTS A SHARE STOCKHOLDERS OF RECORD MARCH 23 WILL BE ELIGIBLE TO VOTE ON THE REVERSE SPLIT AT THE ANNUAL MEETING APRIL 27 THE SPLIT WOULD RESULT IN ABOUT 317 MILLION SHARES OUTSTANDING IF THE SPLIT IS APPROVED A QUARTERLY DIVIDEND OF 35 CENTS A SHARE WILL BE PAID BEGINNING IN JULY TO HOLDERS OF RECORD JUNE 30 THAT DIVIDEND EQUALS A QUARTERLY CASH DISTRIBUTION OF ABOUT 11 MILLION THE NATURALGAS COMPANY SAID ZAPATA CHAIRMAN AND CHIEF EXECUTIVE OFFICER RC LASSITER SAID THE BOARD BELIEVES REDUCING THE NUMBER OF SHARES WILL ATTRACT INVESTORS AND INCREASE THE STOCK'S PRICE NOW TOO LOW FOR SOME INVESTORS THE COMPANY ALSO SAID B JOHN MACKIN RETIRED FROM THE BOARD WHICH VOTED TO REDUCE ITS MEMBERSHIP TO SEVEN FROM EIGHT THIS YEAR AND TO SIX IN 1995 9403030055 940303 INTERNATIONAL BRIEF SMITHKLINE BEECHAM PLC DRUG COMPANY IS SELLING SEVEN SMALL BRANDS TO SETON SMITHKLINE BEECHAM PLC SAID IT IS SELLING SEVEN OF ITS SMALL BRANDS TO SETON HEALTHCARE GROUP PLC AND THAT IT IS CLOSING A FACTORY IN ST HELENS IN NORTHWEST ENGLAND THE ST HELENS PLANT WHICH EMPLOYEES 480 FULLTIME STAFF WILL CLOSE AT THE END OF THIS YEAR SMITHKLINE A BRITISH MAKER OF PHARMACEUTICAL AND HEALTHCARE PRODUCTS SAID THE SALE OF ITS BRANDS AND THE PLANT CLOSURE REFLECTS ITS INTENTION TO FOCUS ON LARGE BRANDS SMITHKLINE REFUSED TO DISCLOSE THE PROCEEDS OF THE SALE SETON HOWEVER SAID IT PAID 325 MILLION 48 MILLION FOR THE BRANDS IN 1993 THE COMBINED SALES FOR THE SEVEN BRANDS WERE 142 MILLION AND EARNINGS TOTALED 768000 BEFORE MARKETING AND ADMINISTRATIVE COSTS THE BRANDS BEING SOLD INCLUDE DIETARY SUPPLEMENTS PHYLLOSAN AND IRON JELLOIDS ANALGESIC FYNNON CALCIUM ASPIRIN THE LAXATIVE FYNNON SALTS THE RHEUMATIC PREPARATION ELLIMANS EMBROCATION AND DINNEFORDS SYRUP FOR BABIES 9403030054 940303 PEPPERAND SALT THE HUMAN SPINE WHAT A SPORT FOR NONSUPPORT TO GET THE HANG OF IT 9403030053 940303 TECHNOLOGY BRIEF MOTOROLA INC GERMAN COMPUTER MAKER TO USE ITS POWERPC CHIP MOTOROLA INC SCORED ITS FIRST POINT IN A CAMPAIGN TO GET SOME RESPECT IN THE SUPERCOMPUTING INDUSTRY PERSUADING A GERMAN FASTCOMPUTER MAKER PARSYTEC COMPUTER GMBH TO USE ITS NEW POWERPC CHIP THOUGH ONE OF THE WORLD'S BIGGEST CHIP MAKERS FOR ORDINARY COMPUTERS SCHAUMBURG ILLBASED MOTOROLA HAS BEEN STRUGGLING RECENTLY TO SELL ITS CHIPS AS THE NUMBERCRUNCHING ENGINES INSIDE SOCALLED MASSIVELY PARALLEL PROCESSORS THESE ARE SUPERFAST MACHINES THAT GET THEIR SPEED BY YOKING TOGETHER SCORES OF MICROPROCESSOR CHIPS INSIDE THE SAME BOX SO FAR THOUGH SUCH MOTOROLA RIVALS AS DIGITAL EQUIPMENT CORP AND INTEL CORP HAVE BEEN LEADING CHIP SUPPLIERS IN THIS HIGHLY SPECIALIZED FIELD BUT YESTERDAY MOTOROLA ANNOUNCED ITS FIRST CONVERT IN THE PARALLELPROCESSOR INDUSTRY PARSYTEC BASED IN AACHEN GERMANY SAID IT'S USING POWERPC A NEW LINE OF CHIPS JOINTLY DEVELOPED BY MOTOROLA INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC INSIDE ITS NEW PRODUCT RANGE THOUGH SMALL PARSYTEC HAS A GOOD REPUTATION FOR SUPPLYING SPECIALIZED HIGHSPEED COMPUTING GEAR 9403030052 940303 INTERNATIONAL BRIEF BORAL LTD OPERATING PROFIT FELL 96 IN FIRST HALF ENDED DEC 31 BORAL LTD AN AUSTRALIAN BUILDING MATERIALS AND ENERGY COMPANY REPORTED THAT OPERATING PROFIT AFTER TAX FELL 96 TO 46 MILLION AUSTRALIAN DOLLARS US33 MILLION IN THE FIRST HALF ENDED DEC 31 SYDNEYBASED BORAL ALSO ANNOUNCED PLANS TO RAISE A3537 MILLION THROUGH A RIGHTS ISSUE OF 9826 MILLION ORDINARY OR COMMON SHARES AT A360 US257 EACH THE SHARES WILL BE OFFERED TO EXISTING SHAREHOLDERS ON THE BASIS OF ONE NEW BORAL SHARE FOR EVERY 10 THEY NOW HOLD BORAL SAID IN A STATEMENT THAT PROCEEDS FROM THE RIGHTS ISSUE WILL BE USED TO RETIRE DEBT THE DROP IN INTERIM PROFIT WAS ATTRIBUTED TO A NUMBER OF EXTRAORDINARY LOSSES TOTALING A1622 MILLION THESE ITEMS INCLUDE A PROVISION OF A1583 MILLION FOR THE COST OF RESTRUCTURING ITS OPERATIONS AND SELLING SOME ASSETS 9403030051 940303 MARKETING BRIEF NOTED SLAM DUNK ACCLAIM ENTERTAINMENT INC OYSTER BAY NY SHIPPED NEARLY TWO MILLION UNITS OF ITS NBA JAM VIDEOGAME SOFTWARE TO MORE THAN 50000 RETAIL OUTLETS WORLDWIDE ACCLAIM SAID NEARLY 55000 UNITS OF NBA JAM HAVE BEEN PRESOLD TO CONSUMERS IN ADVANCE OF THE COMPANY'S MARCH 4 LAUNCH HERE'S JOHNNY WALT DISNEY CO SAID IT WILL RELEASE JOHNNY CARSON HIS FAVORITE MOMENTS FROM THE TONIGHT SHOW A VOLUME OF FOUR HOME VIDEOCASSETTES ON MAY 27 DISNEY SAID THE VIDEOS WILL BE THE ONLY VOLUMES OF THE TONIGHT SHOW STARRING JOHNNY CARSON EVER RELEASED ON VIDEO DISNEY ACQUIRED THE HOMEVIDEO RIGHTS TO THE CASSETTES FROM CARSON PRODUCTIONS GROUP INC TERMS WEREN'T DISCLOSED ABC AFFILIATE LYNCH CORP SAID CAPITAL COMMUNICATIONS CO WHICH IT JOINTLY OWNS WITH PHILIP J LOMBARDO COMPLETED THE ACQUISITION OF WOITV DES MOINES IOWA AN ABC NETWORK AFFILIATE FOR 127 MILLION LYNCH SAID A LOCAL CITIZENS GROUP IS APPEALING AN FCC ORDER APPROVING ASSIGNMENT OF THE BROADCAST LICENSE SOME FACULTY MEMBERS OF THE UNIVERSITY OF IOWA WHICH OWNS THE STATION HAD OPPOSED THE SALE HOPING TO KEEP THE STATION AT THE UNIVERSITY 9403030050 940303 LEISURE & ARTS FILM GEENA DAVIS IN OZ ED HARRIS IN LOVE BY JULIE SALAMON I OVERHEARD TWO WOMEN TALKING ABOUT ANGIE AFTER A SCREENING OF THE MOVIE WASN'T IT AMAZING THE WAY GEENA DAVIS CHOPPED OFF HER HAIR HERSELF AND CAME UP WITH A BETTER CUT THAN I PAY 70 FOR ONE OF THEM SAID I LIKED THE WAY SHE HOPPED ON A BUS A WEEK AFTER GIVING BIRTH SAID THE OTHER SARCASTICALLY WHAT A LOUSY MOVIE ANGIE IS A LOUSY MOVIE AND MS DAVIS IS AMAZING IN IT AND I AM NOT BEING SARCASTIC SHE HAS A WAY OF MAKING THE MOST IMPLAUSIBLE SITUATIONS BELIEVABLE AND SHE IS GIVEN PLENTY OF OPPORTUNITY TO PROVE IT IN ANGIE ADAPTED FROM A NOVEL CALLED ANGIE I SAYS BY AVRA WING THE MOVIE IS SUPPOSED TO BE A HEARTWARMING STORY ABOUT WHIMSICAL WORKINGCLASS PEOPLE FROM BROOKLYN THE HEROINE ANGIE MS DAVIS HAS SPENT A LIFETIME LONGING FOR THE MOTHER WHO ABANDONED HER SHE REMEMBERS HER MOTHER AS SOMEONE WHO DANCED BAREFOOT IN THE SNOW AND WANTS TO BE SPECIAL LIKE THAT WHEN SHE IS PAST 30 SHE BECOMES PREGNANT BY THE MAN SHE HAS DATED SINCE SHE WAS 14 BUT HASN'T MARRIED AND DECIDES TO DEMONSTRATE HER OWN SPECIALNESS BY VISITING THE METROPOLITAN MUSEUM OF ART FOR THE FIRST TIME THERE SHE MEETS A PRETENTIOUS IRISHMAN WHO LIVES IN A LOFT IN THE COURSE OF THE MOVIE SHE RESOLVES HER RELATIONSHIPS WITH MANY PEOPLE HER OLD AND NEW BOYFRIENDS HER FATHER AND STEPMOTHER HER MOTHER AND THE BABY WHOSE BIRTH WE GET TO WATCH IN EXCRUCIATING DETAIL WHEN THE MOVIE IS ALMOST OVER ANGIE EXPLAINS THE LESSONS SHE HAS LEARNED MUCH THE WAY DOROTHY LETS US KNOW THAT THERE'S NO PLACE LIKE HOME AT THE END OF THE WIZARD OF OZ HOWEVER THE ONLY WIZARDRY IN ANGIE IS MS DAVIS'S SHE WINS TEARS FOR ANGIE AND HER TRAVAILS IN CIRCUMSTANCES THAT ARE MADE TO SEEM MORE FANTASTIC AND CERTAINLY MORE INAUTHENTIC THAN ANYTHING DOROTHY ENCOUNTERED IN OZ HOWEVER NOT EVEN MS DAVIS CAN TAKE THE EMBARRASSMENT OUT OF A SCENE THAT HAS HER HAPPILY DANCING AROUND IN A PROVOCATIVE SANTA CLAUS SUIT IN HER NINTH MONTH OF PREGNANCY STEPHEN REA WHO WAS SO AFFECTING AS THE IRA MAN AND LOVER IN THE CRYING GAME SEEMS TO HAVE REALIZED THE WHOLE THING WAS HOPELESS FROM THE START HE TREATS HIS PART AS THE HIP MANHATTAN LOVER LIKE A CAT WHO'S FOUND A COMFORTABLE COUCH OCCASIONALLY HE LIFTS HIS HEAD TO MEOW A LINE AND THEN DROPS BACK TO SLEEP THE MANY MISCALCULATIONS IN THIS MOVIE WERE MADE BY MANY TALENTED PEOPLE THE DIRECTOR MARTHA COOLIDGE SHOWED A DEFT HAND WITH SENSITIVE MATERIAL IN RAMBLING ROSE THE SCREENWRITER TODD GRAFF SUCCESSFULLY WROTE ABOUT A WHIMSICAL FAMILY OF THE OUTER BOROUGHS IN USED PEOPLE BUT WHEN THEY PUT THEIR HEADS TOGETHER THEY PRODUCED A BIG OUCH TO PARAPHRASE STEPHEN SONDHEIM WHIMSY ISN'T EASY YOU AN ORPHAN ASKS A WOMAN OF A MAN TRYING TO PICK HER UP AT A BAR I'M AN ORPHAN OF DESTINY HE REPLIES HE'S FLIRTING BUT HE ISN'T KIDDING NO ONE JOKES FOR NOTHING IN CHINA MOON AN EARNEST REPRODUCTION OF 1940S FILMS NOIRS DESPITE APPEARANCES AND GEORGE FENTON'S OVERTHETOP MUSICAL SCORE THIS ISN'T A PARODY IT SEEMS THAT SCREENWRITER ROY CARLSON WAS PERFECTLY SERIOUS WHEN HE WROTE THE PORTENTOUS DIALOGUE FOR EXAMPLE WHEN THE MAN GETS THE WOMAN OUT OF THE BAR ONTO A LAKE FOR A NIGHTTIME BOAT RIDE HE POINTS AT THE FLAT ROUND MOON AND SAYS MY GRANDMOTHER USED TO SAY THAT WHEN THE MOON IS LIKE A BIG OLD PLATE OF CHINA STRANGE THINGS HAPPEN THE PROBLEM WITH THIS BIG OLD PLATE OF CHINA IS THAT IT ISN'T STRANGE AT ALL YOU'VE SEEN STACKS AND STACKS OF IT ON THE LATE SHOW OR DID BEFORE THE LATE SHOW WAS MADE OBSOLETE BY CABLETV MOVIE CHANNELS AND HOME VIDEOS LIKE THOSE LATENIGHT MOVIES THERE DOESN'T SEEM TO BE MUCH REASON TO WATCH CHINA MOON YET IT ISN'T BAD TO WATCH EITHER IT'S BEEN NICELY PHOTOGRAPHED BY WILLY KURANT AND DIRECTED WITH AN EYE TO THE PHOTOGRAPHY BY JOHN BAILEY THE CINEMATOGRAPHER MAKING HIS DIRECTING DEBUT ED HARRIS HANDILY CARRIES OFF THE ROLE OF THE SMART COP WHO BECOMES VERY STUPID WHEN HE FALLS IN LOVE WITH THE WOMAN FROM THE BAR MADELEINE STOWE OF BLINK SHORT CUTS AND LAST OF THE MOHICANS BECOMES MORE INTRIGUING EVERY TIME YOU SEE HER SHE'S THE BEAUTIFUL NEUROTIC WHO LEADS THE COP ASTRAY THE BRITISH ACTOR CHARLES DANCE AS THE HUSBAND PLAYS MEAN BETTER THAN HE PRONOUNCES IT WITH AN AMERICAN SOUTHERN ACCENT REALITY BITES ABOUT FOUR FRIENDS JUST OUT OF COLLEGE PROBABLY ISN'T THE DEFINING MOVIE OF ITS GENERATION BUT THIS HIP COMEDY BY BEN STILLER IS SMART AND FUNNY AND HAS SOME GREAT MOMENTS THAT MAKE IT SEEM LIKE IT COULD BE THE DEFINING MOVIE OF ITS GENERATION THE MOVIE IS WORTH SEEING TO WATCH WYNONA RYDER PROVE SHE CAN BE CHARMING IN THIS LIFETIME AND TO SEE THE GAP INSTALLED IN ITS RIGHTFUL PLACE AS A MAJOR CULTURAL LANDMARK VIDEO TIP IF WHIMSY'S YOUR THING WATCH USED PEOPLE THE DELIGHTFUL 1992 PICTURE ABOUT AN ECCENTRIC JEWISH FAMILY IN QUEENS MADE HAPPY BY A ROMANTIC ITALIAN PLAYED BY MARCELLO MASTROIANNI THIS CUTE FABLE TAKES PLACE IN 1969 A YEAR THAT ANYTHING SEEMED POSSIBLE THE METS WON THE PENNANT AND A MAN LANDED ON THE MOON FOR THE FIRST TIME 9403030048 940303 LEISURE & ARTS BOOKSHELF THE ROAD TO ROE BY RITA J SIMON IN LIBERTY AND SEXUALITY MACMILLAN 981 PAGES 28 DAVID GARROW TAKES US ON A CAREFULLY DETAILED EXCESSIVELY LONG 50YEAR JOURNEY THROUGH BEDROOMS COURTS AND DOCTORS' OFFICES THAT ENDS INEVITABLY WITH THE 1973 SUPREME COURT DECISION IN ROE VS WADE MR GARROW BEGINS IN 1923 DESCRIBING THE SOCIAL MOVEMENT THAT SOUGHT TO REPEAL A CONNECTICUT STATUTE PASSED IN 1879 THAT FORBADE TRAFFICKING IN OBSCENE LITERATURE AND MATERIALS CONCERNING SEX REPRODUCTION AND THE USE OF ANY DRUG MEDICINE ARTICLE OR INSTRUMENT FOR THE PURPOSE OF PREVENTING CONCEPTION INITIALLY THE MOVEMENT'S LEADERS WERE LARGELY MEMBERS OF THE NEW ENGLAND ARISTOCRACY WHO WERE WORRIED ABOUT THE NUMBER OF UNWANTED CHILDREN BORN TO POOR ETHNIC AND IMMIGRANT WOMEN THE MOVEMENT WHICH HAD A STRONG ANTICATHOLIC BIAS CAME TO A TEMPORARY HALT IN MARCH 1940 WITH THE CONNECTICUT SUPREME COURT DECISION CONNECTICUT VS ROGER B NELSON ET AL THAT UPHELD THE 1879 STATUTE IN A 32 RULING THE MAJORITY COMMENTED THAT IT IS TO THE LEGISLATURE NOT THE JUDICIARY TO WHICH APPEALS TO OVERTURN THE 1879 STATUTE SHOULD BE MADE AFTER A RECESS FOR WORLD WAR II THE BIRTHCONTROL MOVEMENT REENTERED HISTORY ON JUNE 19 1954 WHEN THE SUPREME COURT HANDED DOWN ITS 54 DECISION IN POE VS ULLMAN AGAIN THAT DECISION UPHELD THE 1879 CONNECTICUT STATUTE BY A SINGLE VOTE IN HIS DISSENT JUSTICE JOHN M HARLAN OBSERVED THAT A STATUTE MAKING IT A CRIMINAL OFFENSE FOR MARRIED COUPLES TO USE CONTRACEPTIVES IS AN INTOLERABLE AND UNJUSTIFIABLE INVASION OF PRIVACY IN THE CONDUCT OF THE MOST INTIMATE CONCERNS OF AN INDIVIDUAL'S PRIVATE LIFE AS MR GARROW NOTES IT WAS THE WORDING OF HARLAN'S DISSENT WITH ITS FOCUS ON THE RIGHT TO PRIVACY THAT LAID THE GROUNDWORK FOR THE EVENTUAL VICTORY OVER THE 1879 STATUTE LOOKING MUCH FURTHER DOWN THE ROAD THAT DISSENT ALSO OPENED THE DEBATE THAT LED TO THE DECISION ALMOST 20 YEARS LATER IN ROE VS WADE AND IT WAS JUSTICE HARLAN'S DISSENT THAT WAS PRAISED BY THE MEDIA EDITORIALS FOUND THE DISSENT POWERFUL AND PERSUASIVE AND THE MAJORITY OPINION PUZZLING AND REGRETTABLE BUT BEFORE CONSIDERING THE RIGHT OF A WOMAN MARRIED OR SINGLE TO END HER PREGNANCY THE SUPREME COURT HAD TO DETERMINE THE RIGHT OF MARRIED WOMEN TO USE CONTRACEPTIVES THAT HAPPENED IN 1965 WHEN THE SUPREME COURT HELD BY A 72 MARGIN IN GRISWOLD VS CONNECTICUT THAT THE 1879 STATUTE VIOLATED THE RIGHT TO PRIVACY ESTELLE GRISWOLD DIRECTOR OF THE CONNECTICUT PLANNED PARENTHOOD LEAGUE AND MEDICAL COLLEAGUE LEE BUXTON HAD WON A 42YEAR STRUGGLE TO MAKE BIRTH CONTROL LEGAL DEPENDING ON WHICH JUSTICE'S OPINION YOU READ THE PRIVACY RIGHT WAS CREATED OUT OF THE THIRD FOURTH FIFTH NINTH OR 14TH AMENDMENT THE STAGE WAS NOW SET FOR THE DEBATE OVER ABORTION IT WAS A STRUGGLE ORGANIZED LED AND EVENTUALLY WON BY PROFESSIONALS FROM THE AMERICAN CIVIL LIBERTIES UNION LAWSCHOOL FACULTIES AND EXPERIENCED COURTROOM LITIGATORS AIDED BY DOCTORS A RECENTLY FORMED FEMINIST MOVEMENT AND OPINION POLLS ACCORDING TO THOSE POLLS IN 1969 40 OF THE AMERICAN PUBLIC FAVORED A LAW THAT WOULD PERMIT FIRSTTRIMESTER ABORTIONS BY 1972 64 BELIEVED THE DECISION TO HAVE AN ABORTION SHOULD BE MADE SOLELY BY WOMEN AND THEIR PHYSICIANS THESE VIEWS WERE HELD EQUALLY BY MEN AND WOMEN IN THE END THE DECISION WAS MADE BY THE COURTS THOSE WHO TIED THEIR STRATEGIES AND HOPES TO STATE LEGISLATURES EXPERIENCED SETBACKS AND FRUSTRATIONS AT LEAST 17 STATES INTRODUCED ABORTIONREFORM BILLS AND ALL OF THEM FAILED TO GAIN ADOPTION MR GARROW DEVOTES PAGE AFTER PAGE TO DESCRIBING THE BEHINDTHESCENES MANEUVERING BY THE SUPREME COURT JUSTICES AND THEIR CLERKS AND THE CHANGES THAT DEVELOPED BETWEEN THE FIRST DRAFT OF ROE VS WADE AND THE VERSION FINALLY ACCEPTED BY THE SEVENJUSTICE MAJORITY AS JUSTICE HARRY A BLACKMUN STATED IN HIS 51PAGE MAJORITY DECISION IT WAS THE RIGHT TO PRIVACY AS GLEANED FROM THE WORDING IN THE 14TH AMENDMENT ON WHICH THE COURT HUNG ITS DECISION THE DECISION CAME TOO LATE FOR NORMA MCCORVEY THE JANE ROE OF ROE VS WADE MR GARROW REPORTS HER REACTION TO THE COURT'S DECISION AS HAPPY SAD AND MAD BY THEN SHE HAD GIVEN UP FOR ADOPTION THE CHILD SHE HAD BEEN FORCED TO BEAR IN TELLING HIS STORY MR GARROW SPARES HIS READERS FEW DETAILS CONVERSATIONS ARE REPORTED AT LENGTH WITH WOMEN WHO UNDERWENT ABORTIONS WITH PHYSICIANS WHO FOUND THEMSELVES IN TROUBLE WITH HOSPITAL ADMINISTRATORS WITH ATTORNEYS WHO ARGUED ABOUT SUBSTANCE AND STYLE AND MOST OF ALL WITH SUPREME COURT CLERKS AND THE JUSTICES FOR WHOM THEY WORKED WE LEARN FOR EXAMPLE THAT THE CLERKS WERE VERY ANNOYED BY JUSTICE BYRON WHITE'S DIRTY PLAY DURING BASKETBALL GAMES IN THE COURT'S GYM ONE CAN SKIP TENS OF PAGES AND STILL PICK UP THE MAIN THRUST OF THE NARRATIVE IN THE END WITH ALL THE ADVANCES AND SETBACKS ROE VS WADE BECAME THE LAW OF THE LAND IT WAS NOT A DRAMATIC REVOLUTIONARY DECISION THAT CAUGHT AN INNOCENT PUBLIC BY SURPRISE TO THIS READER MR GARROW OFFERS TOO MANY DETAILS TOO MANY INSIDER STORIES EVEN SO LIBERTY AND SEXUALITY IS AN IMPORTANT BOOK THAT MAY TURN OUT TO BE THE DEFINITIVE HISTORY OF THE RIGHT TO PRIVACY AND THE RIGHT TO ABORTION MS SIMON IS SOCIOLOGY PROFESSOR OF PUBLIC AFFAIRS AND LAW AT THE AMERICAN UNIVERSITY IN WASHINGTON DC 9403030047 940303 HEALTH CARE ALL WE NEED TODAY AND TOMORROW SEN JOHN CHAFEE IS BRINGING TOGETHER A GROUP OF GOP SENATORS REPRESENTATIVES AND GOVERNORS IN A HEALTH CARE SUMMIT IN A MEMO FAXED YESTERDAY TO REPUBLICAN LEADERS FOR USE AT THE ANNAPOLIS CONFERENCE WILLIAM KRISTOL OF THE PROJECT FOR THE REPUBLICAN FUTURE PROVIDES WHAT HE CALLS AN OUTLINE OF BIPARTISAN LEGISLATION TO ACHIEVE PRINCIPLED CONSERVATIVE HEALTH CARE REFORM INDIVIDUAL AND GROUP HEALTH PLANS SHOULD BE MADE RENEWABLE WITHOUT PREMIUM INCREASES DUE TO PREEXISTING CONDITIONS OF THOSE ALREADY COVERED BY A POLICY INDIVIDUALS WHO ALREADY HAVE HEALTH INSURANCE SHOULD IF THEY CHANGE JOBS OR MOVE BE PERMITTED TO ENROLL IN SIMILAR PLANS WITHOUT FACING PREMIUM INCREASES DUE TO HEALTH STATUS INDIVIDUALS WHO WORK AT SMALL COMPANIES SHOULD BE ALLOWED TO CONTINUE THEIR INSURANCE COVERAGE FOR A TRANSITIONAL PERIOD AFTER THEY LEAVE THEIR JOB EXISTING COBRA LEGISLATION SHOULD BE EXTENDED TO COVER BUSINESSES WITH FEWER THAN 50 EMPLOYEES INDIVIDUALS AND THE SELFEMPLOYED SHOULD BE ABLE TO DEDUCT THE FULL COST OF THEIR HEALTH INSURANCE FROM THEIR PERSONAL INCOME TAX THE SAME TAX ADVANTAGE ENJOYED BY THOSE WHO NOW GET HEALTH COVERAGE FROM THEIR EMPLOYER EMPLOYERS SHOULD BE ABLE TO OFFER MEDICAL SAVINGS ACCOUNTS ESSENTIALLY TAXFREE MEDICAL IRAS IN CONJUNCTION WITH A CATASTROPHIC HEALTH CARE PLAN SMALL BUSINESSES SHOULD BE ALLOWED TO POOL TOGETHER TO BUY GROUP INSURANCE FOR THEIR EMPLOYEES WITHOUT FACING CUMBERSOME FEDERAL AND STATE REGULATIONS AND MANDATES INDIVIDUALS SHOULD BE ABLE TO OBTAIN HEALTH INSURANCE THROUGH NONBUSINESS ORGANIZATIONS SUCH AS CHURCHES UNIONS OR FRATERNAL ORGANIZATIONS WORKING HEADS OF HOUSEHOLDS WHO DO NOT EARN ENOUGH TO AFFORD A FAMILY INSURANCE PLAN SHOULD RECEIVE A GOVERNMENT VOUCHER TO HELP DEFRAY THE COSTS THE VOUCHER COULD BE MADE AVAILABLE ON A SLIDING SCALE UP TO A FAMILY OF FOUR EARNING SAY 23000 A YEAR APPROXIMATELY 160 OF THE POVERTY LINE SIMILAR RESULTS COULD BE OBTAINED BY DESIGNING A TAX CREDIT FOR THIS GROUP OF AMERICANS FUNDING FOR THIS PROPOSAL COULD BE FOUND IN CURRENTLY PROPOSED MEDICARE CUTS AND BY REDIRECTING FEDERAL PAYMENTS ALREADY MADE TO STATES FOR HOSPITALS TREATING LOWINCOME INDIVIDUALS FEDERAL AND STATE HEALTH CARE PROGRAMS SHOULD STANDARDIZE THEIR FORMS AND SET A TIMETABLE FOR REDUCING THE AMOUNT OF PAPERWORK THEY GENERATE THE FIRST STEPS OF MEDICAL MALPRACTICE REFORM SHOULD BE INSTITUTED FOR EXAMPLE EFFECTIVELY ELIMINATING PAIN AND SUFFERING AWARDS IF AN EARLY OFFER IS MADE TO HAVE THE DEFENDANT ASSUME THE FULL ECONOMIC COST OF MALPRACTICE CLAIMS THE BIPARTISAN GEPHARDTMOORE BILL OF THE 1980S PROPOSED A SIMILAR REFORM THE FEDERAL GOVERNMENT SHOULD CREATE A FASTTRACK REGULATION WAIVER PROCESS FOR STATES THAT WISH TO ADMINISTER THEIR MEDICAID PROGRAMS IN DIFFERENT WAYS PRIORITY SHOULD BE GIVEN TO STATES THAT INTEND TO USE VOUCHER SYSTEMS TO GIVE MEDICAID PATIENTS GREATER ACCESS TO PRIVATE HEALTH CARE OR CREATE COSTSAVING MANAGED CARE SYSTEMS SUCH AS THOSE IN MASSACHUSETTS OR WISCONSIN 9403030046 940303 LEISURE & ARTS LUNCH WITH LETITIA OUR REPORTER MINDS HER MANNERS BY AMY GAMERMAN WASHINGTON DC LETITIA BALDRIGE WAS TEACHING ME SOME MANNERS NOW YOU'RE TAKING ME TO LUNCH RIGHT SHE ASKED THEN YOU SHOULD HAVE OFFERED IT TO ME FIRST MS BALDRIGE TOOK THE OBJECT IN QUESTION A DISH OF HERBED SPREAD AND DUG IN WITH HER BREAD KNIFE WE WERE LUNCHING AT THE HAY ADAMS HOTEL WHERE I HAD INVITED HER TO BUFF MY ROUGH EDGES NOW 67 MS BALDRIGE IS THE NATION'S CLOSEST THING TO AN ETIQUETTE CZAR IN BOOKS SUCH AS HER COMPLETE GUIDE TO THE NEW MANNERS FOR THE '90S AND RSVP HER SYNDICATED MANNERS COLUMN SHE HAS TRIED TO TEACH AMERICANS HOW TO BEHAVE HER LATEST EFFORT LETITIA BALDRIGE'S NEW COMPLETE GUIDE TO EXECUTIVE MANNERS RAWSON ASSOCIATES 590 PAGES 35 PRONOUNCES ON EVERYTHING FROM CORPORATEJET ETIQUETTE TO DOORHOLDING IN THE OFFICE SO REDOUBTABLE IS HER REPUTATION THAT MARTIN SCORCESE APPEALED TO HER FOR TIPS IN FILMING HIS EXCRUCIATINGLY MANNERED MOVIE THE AGE OF INNOCENCE SO I WAS ON MY BEST BEHAVIOR I HAD PLACED MY NAPKIN IN MY LAP I HAD TORN MY BREAD NOT CUT IT WITH A KNIFE I WAS SPEAKING IN A LOW VOICE THAT MORNING I HAD DOUBLECHECKED MY MANICURE AND DONNED A CONSERVATIVE SUIT NONE OF THIS WAS LOST ON MS BALDRIGE WHO ARRIVED FOR OUR LUNCH IN AN IRREPROACHABLE BLACK DRESS AND PEARLS AN IMPOSING FIGURE AT 6FOOT1 ALTHOUGH THE CAPITAL'S STREETS WERE COVERED IN ICE SHE WAS WEARING HIGH HEELS I ALMOST FELL ON MY KEISTER SHE CONFIDED IN ELEGANTLY ROUNDED TONES ONCE WE WERE SEATED IN THE PLUSH DINING ROOM SHE SIPPED HER RED WINE AND REFLECTED ON WHAT DEFINES GOOD MANNERS IT'S CONSIDERATION AND KINDNESS AND THINKING ABOUT SOMEBODY OTHER THAN ONESELF SHE SAID MIND YOU THERE'S A DIFFERENCE BETWEEN A GREASY OBSEQUIOUS SLATHERING FOOL WHO THINKS HE'S GOT GOOD MANNERS AND SOMEBODY WHO'S NATURALLY EASILY GOODMANNERED LIKE GEORGE WASHINGTON THE WAITER ARRIVED I GAVE MY ORDER AS HE HEADED FOR THE KITCHEN MS BALDRIGE GENTLY CHIDED ME YOU SHOULD HAVE SAID TO HIM SHE WILL HAVE THE PAILLARD OF BEEF' FIRST I'M THE GUEST SHE CONTINUED I AS THE GUEST MUST NEVER SPEAK TO THE WAITER MS BALDRIGE PULLED AN EMBROIDERED HANDKERCHIEF FROM HER PURSE WELL NOW I'M GOING TO DO SOMETHING YOU'RE NOT SUPPOSED TO DO I'M GOING TO BLOW SHE SAID AND GAVE A DELICATE HONK YOU CAN DO IT THAT WAY IF YOU'RE GOING TO DO LOTS OF BLOWING AND SNEEZING YOU HAVE TO EXCUSE YOURSELF MS BALDRIGE LEARNED TO MIND HER MANNERS EARLY IN LIFE HER FATHER A REPUBLICAN CONGRESSMAN FROM NEBRASKA DIDN'T TAKE ANY GUFF AT THE DINNER TABLE WHEN TISH AND HER TWO BROTHERS ACTED UP THE CONGRESSMAN IMPOSED A STRICT 10 MINUTES OF SILENCE THE BALDRIGE CHILDREN WROTE THANKYOU NOTES AND CONDOLENCE LETTERS BY THE VOLUME OVERSEEN BY MRS BALDRIGE WHO WOULD WALK THEM TO THE CORNER MAILBOX AND DECLARE NOW DOESN'T THAT FEEL GOOD AS THE LETTERS FELL DOWN THE SLOT THEY SHOULD HAVE BEEN PRESERVED IN FORMALDEHYDE OR SOMETHING AND PUT UP IN THE SMITHSONIAN AS TWO ABSOLUTELY REMARKABLE PEOPLE MS BALDRIGE SIGHED HER UPBRINGING SERVED HER WELL WHEN AT THE TENDER AGE OF 21 SHE WAS HIRED AS SOCIAL SECRETARY FOR DAVID AND EVANGELINE BRUCE AT THE US EMBASSY IN PARIS THERE MS BALDRIGE LEARNED THE INTRICACIES OF PROTOCOL DEFUSING SUCH SOCIAL LAND MINES AS YOU HAVE A FRENCH CARDINAL AND THE FOREIGN MINISTER OF ETHIOPIA AND THE MAYOR OF LILLE ALL COMING TO LUNCH WHO OUTRANKS WHOM SMALL WONDER THAT AFTER FOUR YEARS WITH THE BRUCES MS BALDRIGE WAS READY FOR A TWOYEAR STINT IN THE EARLY '50S WITH THE CENTRAL INTELLIGENCE AGENCY AS A PSYCHOLOGICALWARFARE OFFICER OR PROPAGANDA SPECIALIST SHE'S STILL TIGHTLIPPED ABOUT HER CIA WORK BUT SAYS IT INCLUDED SOME UNDERCOVER ASSIGNMENTS ON ONE FORAY INTO A PART OF AUSTRIA THEN UNDER SOVIET CONTROL SHE WAS PICKED UP BY THE SOVIET POLICE MY MANNERS DIDN'T HELP MUCH WITH THE SOVIETS SHE SAID FORTUNATELY I WAS SO DITZY THEY REALIZED I WAS OBVIOUSLY NOT CAPABLE OF BEING INVOLVED IN STRATEGICWARFARE PLANNING MS BALDRIGE SOON RETURNED TO STRATEGIC PLANNING OF A MORE FAMILIAR SORT TAKING A JOB AS SPECIAL ASSISTANT TO AMBASSADOR CLARE BOOTHE LUCE IN ROME HER SKILLS WERE WELLPOLISHED BY THE TIME HER OLD PAL JACKIE KENNEDY CALLED IN 1960 SHE SAID WILL YOU COME WITH US IF JACK GETS ELECTED' MS BALDRIGE RECALLED OF COURSE I KNEW THE KENNEDYS JACKIE'S PARENTS WERE GOOD FRIENDS OF MY PARENTS IN WASHINGTON SHE CAME TO PARIS TWO YEARS BEHIND ME WHEN I WAS WORKING FOR THE BRUCES AND I GOT BEAUX FOR HER AND WE ALL WENT OUT AND HAD A GOOD TIME MS BALDRIGE BECAME MRS KENNEDY'S CHIEF OF STAFF AND SOCIAL SECRETARY TO THE WHITE HOUSE BUT EVEN THE BESTBRED PROTOCOL CHIEF CAN SLIP UP MS BALDRIGE STILL SHUDDERS AT THE MEMORY OF THE TIME SHE INTRODUCED THE WIFE OF A PROMINENT DEMOCRATIC CONTRIBUTOR TO THE PRESIDENT BY THE NAME OF THE CONTRIBUTOR'S MISTRESS MS BALDRIGE TOOK A SIP OF WINE I HAVE TOLD STUDENTS IN THE CORPORATIONS WHERE I LECTURE OVER AND OVER AGAIN NEVER PASS THE BUCK ALWAYS TAKE THE BUCK BE THE ONE WHO SAYS MEA CULPA MEA CULPA SHE SAID THE WAITER CAME TO CLEAR THE TABLE FOLLOWING MS BALDRIGE'S LEAD I HAD MOVED MY FORK AND KNIFE TO THE RIGHT SIDE OF MY PLATE I SUGGESTED THAT WE ORDER DESSERT SO MS BALDRIGE COULD SEE IF I KNEW HOW TO EAT IT PROPERLY YOU MUST HAVE ONE I REALLY CAN'T SHE SAID I'LL TELL YOU WHAT I WILL DO I WILL LEAN OVER AND TAKE A BITE OF YOURS WHICH IS PERFECTLY ALL RIGHT TO DO AS LONG AS YOUR SPOON IS PRISTINE CLEAR AND PURE AS I ATE MY APPLE CRISP AFTER MS BALDRIGE HAD TAKEN HER TINY HYGIENIC TASTE SHE COACHED ME URGING SPEAR IT WITH THE FORK CUT IT WITH THE FORK AND EAT IT WITH THE SPOON SHE REFUSED COFFEE UNTIL AFTER DESSERT DECLARING COFFEE IS A DIGESTIF AT LAST I CALLED FOR THE BILL UNDER MS BALDRIGE'S SUPERVISION I CALCULATED A 20 TIP IT WOULD HAVE BEEN BAD MANNERS TO GIVE ANY LESS I'M SO EMBARRASSED WHEN THAT HAPPENS SO HUMILIATED I SEND MONEY SHE SAID I THINK WHAT A JERK TO BE SO MEAN WITH SOMEBODY WHO HAS TRIED SO HARD AND WAITED SO BEAUTIFULLY LUNCH WAS OVER AND I WAS RELIEVED I HADN'T SPILLED ANYTHING OR GOTTEN ANYTHING STUCK BETWEEN MY TEETH TO MY KNOWLEDGE WE ROSE FROM THE TABLE THEN DISASTER STRUCK WHEN WE REACHED THE CLOAKROOM MS BALDRIGE FISHED IN HER PURSE AND ANNOUNCED THAT SHE COULDN'T FIND HER COAT CHECK SHE DESCRIBED HER COAT TO THE ATTENDANT THEN STEPPED INTO THE CLOSET AND LOOKED HERSELF THE ETIQUETTE CZAR BEGAN TO FUME IT'S NOT HERE SHE DECLARED MINUTES PASSED WHILE THE ATTENDANT SEARCHED BOTH CLOAKROOMS COATS WERE PULLED OUT FOR MS BALDRIGE'S INSPECTION NO THAT'S NOT IT THAT'S A MAN'S CHESTERFIELD SHE SAID A LITTLE ANGRILY AFTER COMPLAINING TO THE CONCIERGE MS BALDRIGE FINALLY WENT THROUGH HER PURSE AND FOUND HER TICKET THE ATTENDANT QUICKLY LOCATED HER COAT WHICH SHE HAD OVERLOOKED IN THE CLOSET IT WAS RIGHT HERE MADAME HE SAID REPROACHFULLY HANDING IT OVER AFTER THE BRIEFEST OF MEA CULPAS TO THE ATTENDANT SHE SWEPT OUT OF THE HOTEL WELL IT WAS MY FAULT SHE CONFIDED SERENITY RESTORED HE WAS JUSTIFIED IN BEING ANNOYED 9403030045 940303 REVIEW & OUTLOOK EDITORIAL BEFORE BRADY THE BRADY BILL BECAME THE BRADY LAW PARTLY ON THE NOTION THAT IT WOULD HELP KEEP GUNS OUT OF THE HANDS OF DANGEROUS CRIMINALS THE FIVEDAY WAITING PERIOD PORTION OF THE LAW WENT INTO EFFECT MONDAY ON FEB 17 MARINE LANCE CORPORAL RAYNA ROSS WENT BEFORE A MILITARY TRIBUNAL IN QUANTICO VA INVESTIGATING HER KILLING OF HER FORMER LOVER AFTER HE BROKE INTO HER APARTMENT BUT MORE IMPORTANT THE CASE IS AN OBJECT LESSON IN GUN CONTROL AND THE OTHER SIDE OF THE BRADY LAW ON JUNE 12 1993 MS ROSS BROKE OFF A RELATIONSHIP WITH CORPORAL ANTHONY GOREE MR GOREE DISTRAUGHT OVER THE BREAKUP BEGAN HARASSING HER THE HARASSMENT LED TO MANY PHYSICAL ASSAULTS INCLUDING ONE AT KNIFEPOINT AND ONE AT GUNPOINT THE LATTER HAVING OCCURRED IN MS ROSS'S OFFICE ON BASE ENOUGH WAS ENOUGH AND MS ROSS SWORE OUT A WARRANT FOR HIS ARREST WITH THE PRINCE WILLIAM COUNTY VA POLICE AND MADE A FORMAL COMPLAINT WITH THE MARINE CORPS THROUGH HER BATTALION COMMAND CHARGES WERE FILED AGAINST MR GOREE IN BOTH JURISDICTIONS AND A WARRANT WAS ISSUED FOR HIS ARREST BY CIVILIAN AUTHORITIES THE MARINES GOT TO HIM FIRST AND UNDER THE UNIFORM CODE OF MILITARY JUSTICE HE WAS CHARGED WITH ASSAULT WITH A FIREARM AND WRONGFUL CARRYING OF A FIREARM BOTH IMPRISONABLE OFFENSES MR GOREE DID A SHORT STINT IN THE QUANTICO BRIG BUT AT AN ADMINISTRATIVE HEARING WAS RELEASED FROM CONFINEMENT AND PUT ON BASE RESTRICTION WITH THE STIPULATION THAT HE AVOID ALL CONTACT WITH MS ROSS SHORTLY AFTER BEING PUT ON RESTRICTION MR GOREE WENT AWOL HE SUBSEQUENTLY STOLE A CAR AND RESUMED HIS STALKING FORCING MS ROSS TO FLEE HER APARTMENT WITH HER ONEYEAROLD DAUGHTER AND STAY WITH FRIENDS OFTEN MOVING TO A DIFFERENT PLACE EVERY NIGHT ON JUNE 26 MS ROSS DECIDED TO PURCHASE A HANDGUN FORTUNATELY FOR HER PRINCE WILLIAM COUNTY HAS NO FIVEDAY WAITING PERIOD BECAUSE IT HAS AN AUTOMATED FELON DATABASE MUCH LIKE THE SYSTEM PROPOSED BY THE NATIONAL RIFLE ASSOCIATION AND MUCHMALIGNED BY SUPPORTERS OF THE BRADY LAW WE SAY FORTUNATELY BECAUSE THREE DAYS LATER MR GOREE ENTERED HER APARTMENT AT 3 AM IN A BLACK JUMPSUIT AFTER HAVING DISMANTLED THE SLIDING GLASS DOOR ON HER PATIO ACCORDING TO MS ROSS HE CAME AT HER WITH HIS MARINEISSUE BAYONET SHE SHOT HIM DEAD WITH THE 380 SEMIAUTOMATIC HANDGUN SHE HAD PURCHASED JUST THREE DAYS BEFORE UNDER THE BRADY LAW SHE WOULD HAVE HAD TO WAIT ANOTHER TWO DAYS BEFORE TAKING POSSESSION OF THE GUN THE PRINCE WILLIAM COUNTY COMMONWEALTH'S ATTORNEY PASSED ON FILING CHARGES AGAINST HER SAYING IT WAS JUSTIFIABLE HOMICIDE MS ROSS IS NOW IN THE MIDST OF RESOLVING A MARINE CORPS INQUIRY INTO THE CASE WE SUPPOSE THE LAW'S DEFENDERS WILL SAY THIS IS A RARE INCIDENT OR LOOPHOLE WE WONDER PEOPLE CALL THE POLICE ALL THE TIME FOR PROTECTION FROM REAL THREATS AND INVARIABLY ARE TOLD THERE'S NOT MUCH THAT CAN BE DONE UNTIL AN OVERT ACT IS COMMITTED THE FACT IS THAT IF THE BRADY LAW HAD BEEN IN EFFECT IN PRINCE WILLIAM COUNTY ON JUNE 26 1993 IT CERTAINLY WOULD HAVE KEPT A GUN OUT OF THE HAND OF RAYNA ROSS WE SUSPECT THIS STORY WOULD HAVE ENDED DIFFERENTLY 9403030044 940303 REVIEW & OUTLOOK EDITORIAL CLINTON'S FRENCH BUREAUCRATS YES WE KNOW THE CLINTON ADMINISTRATION IS PROBUSINESS MADE UP OF MARKET SAVVY PROS LIKE ROBERT RUBIN AND ROGER ALTMAN TEKKIES LIKE AL GORE AND GLOBALMARKET GURUS LIKE ROBERT REICH IT'S BEEN A TEMPTING AND ALLURING SCENARIO ON DAYS WHEN IT HAS BEEN POSSIBLE TO PUT THIS ADMINISTRATION IN THE BEST LIGHT ONE HAS WANTED TO BELIEVE BUT THE COLLAPSE LAST WEEK OF THE BELL ATLANTICTCI MERGER IN THE WAKE OF SOME THROWBACK RATE REGULATION BY THE FCC PUNCHES A BIG HOLE WELL ANOTHER BIG HOLE IN THE FACADE THE CLINTONITES LIKE MARKETS BUT IN ABOUT THE SAME WAY THAT FRENCH BUREAUCRATS HAVE ALWAYS LIKED MARKETS IN A STRONG EMBRACE ONLY PEOPLE WITH THE MIND OF A FRENCH BUREAUCRAT WOULD AS AL GORE'S FCC DID MANDATE A 7 REDUCTION IN CABLE RATES SMACK IN THE MIDDLE OF BELL ATLANTIC'S OFFER OF SOME 16 BILLION FOR THE COUNTRY'S LARGEST CABLE SYSTEM OPERATOR AS THE JOURNAL REPORTED BELL ATLANTIC CEO RAY SMITH TOOK ONE LOOK AT THE RATECUT ANNOUNCEMENT AS IT WAS BROADCAST ON CSPAN AND KNEW THE DEAL WAS IN TROUBLE NOW WE SUPPOSE THAT REED HUNDT THE FORMER ST ALBAN'S CLASSMATE THAT MR GORE RECRUITED FROM A BELTWAY LAW FIRM TO BE FCC CHAIRMAN WOULD ARGUE THAT THE FATE OF TWO MEDIA MEGATRONS MANEUVERING AROUND THE PRICE OF A STOCK DEAL CAN'T BE THE IMMEDIATE CONCERN OF AN INDEPENDENT REGULATORY BODY INDEED MR GORE CAME TO HIS PROTEGE'S DEFENSE AMID THE RUBBLE AS EVERYONE KNOWS VERY WELL THEY WERE ON THE ROCKS AND LOOKING FOR A REASON TO CALL IT OFF THAT'S A PRETTY WEAK DEFENSE IT IS PROBABLE IF NOT CERTAIN THAT RAY SMITH AND TCI'S JOHN MALONE WOULD HAVE FOUND A WAY TO COMPLETE THE MERGER DESPITE DECLINES IN THEIR COMPANIES' SHARE PRICES HAD NOT THE FCC RUN UP TO HIT THE CABLE INDUSTRY'S CASH FLOW IN THE KNEES WITH A CLUB WE FEAR THE CLINTONITES JUST DON'T GET IT IN FACT WE HAVE FCC CHAIRMAN HUNDT'S WORD FOR IT THAT HE TRULY DOESN'T GET IT IN AN INTERVIEW PUBLISHED IN YESTERDAY'S JOURNAL MR HUNDT SAID WE UNDERSTAND THE INDUSTRY AND DON'T WANT TO HURT IT BUT WE DON'T WANT CABLE COMPANIES TO USE THEIR CURRENT CONSUMERS TO INVEST IN TOMORROW'S SERVICES FORTUNATELY THE HUNDTGORE VIEW OF HOW CAPITALISM WORKS IS LIMITED SO FAR TO REGULATING THE TELECOMMUNICATIONS INDUSTRY HEALTH AND MEDICINE ARE ON THE DRAWING BOARD UNFORTUNATELY IT'S ONE OF THE MOST IMPORTANT PIECES OF THE MODERN AMERICAN ECONOMY THOUGH IN MANY WAYS ARCANE THE TELECOMMUNICATIONS INDUSTRY MESMERIZES THE POPULAR MIND BECAUSE IT IS SO QUINTESSENTIALLY MODERN ITS SUCCESS DEPENDS CRUCIALLY ON BEING FAST FLEXIBLE AND SMART BOTH TECHNOLOGICALLY AND CORPORATELY THE CLINTONITES PURPORT TO UNDERSTAND THE RHYTHMS OF THE MODERN ECONOMY BUT WE DOUBT YOU CAN EVER GET THE RUMBA OUT OF BORN REGULATORS THE GORES AND HUNDTS MAY FEEL THEY'RE ONLY BEING CAUTIOUS ABOUT GREAT UNPREDICTABLE CHANGE BUT COMPARE THEIR KIND OF CAUTION WITH THAT OF GATEWAY 2000 CEO TED WAITT MR WAITT WAS QUOTED IN MONDAY'S JOURNAL AS BEING AMONG THOSE COMPUTER MANUFACTURERS WHO DOUBT THAT THE INFORMATION HIGHWAY WILL RUN VIA HOME TV SETS BUT HE'S GOT ONE WALL OF HIS OFFICE COVERED WITH A MATRIX OF THE ENDLESS INDUSTRY ALLIANCES TAKING SHAPE ALONG THE HIGHWAY WHEN REALITY OR ECONOMICS DEMANDS A SHIFT TED WAITT WILL LIKELY MAKE THE RIGHT TURN AND FAST BY COMPARISON THE CLINTON FCC FACED WITH A SIMILAR DECISIVE MOMENT LURCHES TO DILUTE AN ENTIRE INDUSTRY'S CASH FLOW FORMER CARTER ADMINISTRATION REGULATOR ALFRED KAHN WROTE HERE TUESDAY THAT IT SHOULD BE POSSIBLE TO REGULATE THE BABY BELLS FORWARD TO AN ERA OF FULL COMPETITION BE THAT AS IT MAY WE DON'T SEE ANY ALFRED KAHNS AT THE REGULATORY SWITCHES IN WASHINGTON NOW WHICH IS TO SAY PEOPLE WHO IN FACT UNDERSTAND HOW MODERN CORPORATIONS ACTUALLY FUNCTION IN THE MARKETPLACE INSTEAD WE HEAR THEORIES WE HEAR SPEECHES AND WE HEAR PROMISES OF MARKETORIENTED POLICYMAKING IN THE REAL WORLD THE DAY AFTER THE BELL ATLANTICTCI MERGER COLLAPSED WE WATCHED A NERVOUS MARKET GO OFF NEARLY 52 POINTS WHATEVER THE CLINTON REGULATORY PHILOSOPHY ACTUALLY IS IT DOESN'T INSPIRE CONFIDENCE 9403030043 940303 BUSINESS BRIEF WH SMITH GROUP PLC VENTURE WITH VIRGIN RETAIL IN UK IRELAND IS GROWING WH SMITH GROUP PLC AND VIRGIN RETAIL GROUP LTD ARE ENHANCING THEIR RETAILING JOINT VENTURE IN THE UK AND IRELAND THE ENLARGED JOINT VENTURE WILL OPERATE THE EXISTING 305 OUR PRICE STORES OWNED BY WH SMITH AND 24 VIRGIN MEGASTORES IN IRELAND AND THE UK BOTH CHAINS MARKET RECORDS CDS TAPES VIDEOS AND OTHER HOME ENTERTAINMENT PRODUCTS THE JOINT VENTURE WILL BE MANAGED BY AN EXECUTIVE COMMITTEE WITH EQUAL PARTICIPATION BY VIRGIN AND WH SMITH EXECUTIVES THE COMPANIES SAID WH SMITH WILL OWN 75 AND VIRGIN 25 OF THE LARGER BUSINESS WHICH IS EXPECTED TO HAVE SALES EXCEEDING 350 MILLION 521 MILLION IN THE CURRENT FINANCIAL YEAR 9403030042 940303 BUSINESS BRIEF LESCO INC COMPANY EXPECTS 1994 SALES TO INCREASE MORE THAN 15 LESCO INC EXPECTS 1994 SALES TO RISE MORE THAN 15 AND EARNINGS TO GROW BY A GREATER PERCENTAGE SAID WILLIAM A FOLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER THE GROWTH WILL RESULT IN PART FROM A RAPID EXPANSION IN LESCO'S CHAIN OF SALES AND SERVICE CENTERS AS WELL AS FROM RISING SALES TO HOME DEPOT INC STORES MR FOLEY SAID IN AN INTERVIEW THE PRODUCER OF LAWNCARE PRODUCTS AND EQUIPMENT BASED IN THE CLEVELAND SUBURB OF ROCKY RIVER OHIO IS COMFORTABLE WITH ANALYSTS' 1994 EARNINGS ESTIMATES OF 79 CENTS TO 87 CENTS A SHARE SAID DANIEL G DUNSTAN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER SALES ARE EXPECTED TO TOTAL BETWEEN 192 MILLION AND 205 MILLION HE SAID IN 1993 LESCO HAD EARNINGS OF 48 MILLION OR 68 CENTS A SHARE ON SALES OF 1662 MILLION 9403030041 940303 MINNESOTA MINING 2 OTHER FIRMS TOLD TO PAY 185 MILLION IN IMPLANT SUIT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MINNESOTA MINING & MANUFACTURING CO AND TWO OTHER COMPANIES WERE ORDERED TO PAY 185 MILLION IN DAMAGES BY A HOUSTON JURY IN A CLOSELY WATCHED BREASTIMPLANT LAWSUIT INVOLVING THREE WOMEN WITH IMMUNESYSTEM AND NERVOUSSYSTEM ILLNESSES THE ST PAUL MINN COMPANY WHICH OWNED A CALIFORNIA MANUFACTURER OF SILICONE BREAST IMPLANTS FROM 1977 TO 1984 WILL SHARE ANY LIABILITY WITH THE CALIFORNIA COMPANY MCGHAN MEDICAL CORP AND WITH MCGHAN'S CURRENT PARENT INAMED CORP OF LAS VEGAS THE FOURWEEK TRIAL IN HOUSTON'S HARRIS COUNTY DISTRICT COURT HAS GARNERED INTENSE SCRUTINY BECAUSE OF THE POSSIBLE LARGER IMPLICATIONS IT HOLDS FOR 3M SEVERAL LAWYERS WHO ARE NEGOTIATING A TENTATIVE 4 BILLION GLOBAL SETTLEMENT OF BREASTIMPLANT LITIGATION HAD PREDICTED THAT A BIG VERDICT AGAINST 3M COULD PROPEL THE COMPANY INTO JOINING THE SETTLEMENT THE MINNESOTA COMPANY ALONG WITH MCGHAN MEDICAL AND ONETIME SILICONE SUPPLIER GENERAL ELECTRIC CO HAVE BALKED AT PARTICIPATING IN THE SETTLEMENT BECAUSE OF THE COST ACCORDING TO NEGOTIATORS PARTICIPATION BY 3M COULD GREATLY EXPAND THE SIZE OF THE SETTLEMENT FUND A 3M SPOKESWOMAN SAID THE COMPANY WOULDN'T BASE OUR DECISION ABOUT JOINING A GLOBAL SETTLEMENT ON ONE CASE HOWEVER JOHN M O'QUINN A PLAINTIFF LAWYER IN THE CASE POINTS OUT THAT THERE ARE PROBABLY 300 CASES AGAINST 3M ALREADY ON FILE IN HARRIS COUNTY WHICH IS FAMOUS FOR WHOPPING JURY VERDICTS IN FAVOR OF PLAINTIFFS SEVERAL CASES ARE SET FOR TRIAL THIS YEAR MOST OTHER BIG PLAYERS IN THE SILICONEIMPLANT BUSINESS INCLUDING DOW CORNING CORP BRISTOLMYERS SQUIBB CO AND BAXTER INTERNATIONAL INC HAVE ALREADY AGREED TO FUND THE SETTLEMENT PLAN BUT STILL ARE NEGOTIATING SOME FACETS OF THE DEAL THEY AND OTHER DEFENDANTS GENERALLY DENY THAT THE IMPLANTS ARE LINKED TO ILLNESSES ONCE SIGNED BY THE COMPANIES AND PLAINTIFFS' REPRESENTATIVE THE SETTLEMENT WOULD HAVE TO BE APPROVED BY A FEDERAL JUDGE SAM C POINTER JR IN BIRMINGHAM ALA BEFORE IT COULD BECOME FINAL ONE OF THE PLAINTIFFS CONTENDED SHE CONTRACTED LUPUS AN IMMUNESYSTEM ILLNESS FROM THE SILICONE IN HER IMPLANTS WHILE THE OTHER TWO WOMEN CLAIMED THE DEVICES CAUSED A CONDITION KNOWN AS NEUROPATHY THEY CONTENDED THEIR SYMPTOMS INCLUDED SEVERE MUSCLE PAIN AND WEAKNESS EXTREME FATIGUE INABILITY TO CONCENTRATE AND MEMORY LOSS ONE OF THE WOMEN DARLA LAWSON HAD TO QUIT HER JOB AS A FLIGHTATTENDANT SUPERVISOR BECAUSE OF HER LUPUS MR O'QUINN SAID IN AN INTERVIEW IT IS ESTIMATED THAT SOME 12000 FEDERAL AND STATE LAWSUITS RELATED TO SILICONE IMPLANTS HAVE BEEN FILED THE GLOBAL SETTLEMENT DEAL IF APPROVED WOULD CONCLUDE THE CASES OF ALL WOMEN WHO DON'T OPT OUT AND PURSUE THEIR OWN LITIGATION 9403030040 940303 BUSINESS BRIEFS HANSON INDUSTRIES THE US ARM OF HANSON PLC LONDON SOLD ITS 50 PARTNERSHIP INTEREST IN NORTH TEXAS CEMENT CO 15 READYMIX CONCRETE PLANTS AND RELATED ASSETS FOR 54 MILLION ESSEF CORP'S PACFAB POOLPRODUCTS UNIT AGREED TO ACQUIRE THE ASSETS OF PUREX POOL PRODUCTS A UNIT OF GREAT LAKES CHEMICAL CO FOR BETWEEN 10 MILLION AND 12 MILLION TRANSTECHNOLOGY CORP COMPLETED THE SALE OF ITS FEDERAL LABORATORIES DIVISION TO MACE SECURITY INTERNATIONAL INC BENNINGTON VT FOR ABOUT 5 MILLION IN CASH NOTES AND MACE COMMON STOCK ASTROTECH INTERNATIONAL CORP COMPLETED THE ACQUISITION OF CLOSELY HELD BROWNMINNEAPOLIS TANK & FABRICATING CO ST PAUL MINN FIRST DATA CORP'S FIRST DATA RESOURCES INC UNIT SIGNED A FIVEYEAR AGREEMENT TO PROVIDE CARDHOLDERPROCESSING SERVICES TO A BANKING AFFILIATE OF FORD MOTOR CO'S FINANCIAL SERVICES GROUP TERMS WEREN'T DISCLOSED MCCORMICK & CO ACQUIRED THE SPICE BUSINESS OF FINNISH FOOD DISTRIBUTOR TUKO OY TERMS WEREN'T DISCLOSED 9403030039 940303 TECHNOLOGY ORACLE IS EXPECTED TO ANNOUNCE PACT WITH BRITISH TELECOM REDWOOD SHORES CALIF ORACLE CORP IS EXPECTED TO ANNOUNCE TODAY THAT IT WON A CONTRACT TO SUPPLY BRITISH TELECOMMUNICATIONS PLC WITH SOFTWARE AND SYSTEMS INTEGRATION NEEDED TO BEAM MULTIMEDIA SERVICES INTO BRITISH HOMES ORACLE DECLINED TO COMMENT ON THE CONTRACT BUT PEOPLE CLOSE TO THE DEAL SAY THE SOFTWARE MAKER WILL SUPPLY BRITISH TELECOMMUNICATIONS WITH AN ARRAY OF PRODUCTS FROM TELEVISION SETTOP BOXES TO THE MULTIMEDIA INFORMATION SERVER THAT WILL CHANNEL VIDEO AUDIO AND TEXTUAL DATA INTO THE HOME THE PACT IS THOUGHT TO INCLUDE CONSULTING SERVICES AND A NUMBER OF SOFTWARE PRODUCTS SUCH AS ORACLE MEDIA SERVER A MULTIMEDIA LIBRARY THAT STORES AND RETRIEVES VIDEO AUDIO AND TEXTUAL DATA ALSO INCLUDED IS ORACLE MEDIA OBJECTS SOFTWARE USED IN THE TELEVISED PRESENTATION OF SUCH SERVICES AS MOVIES ON DEMAND OR HOME SHOPPING IN ADDITION ORACLE MEDIA NET WILL LINK CONSUMERS WITH THE MEDIA SERVER DELIVERING THE REQUESTED SERVICES ORACLE HAS PUSHED HARD TO ESTABLISH ITS SOFTWARE PRODUCTS AS THE STANDARD TOOLS FOR FERRYING DATA ALONG THE INFORMATION SUPERHIGHWAY THE BRITISH TELECOMMUNICATIONS CONTRACT WILL BE ORACLE'S THIRD MAJOR TELECOMMUNICATIONS ALLIANCE IN LESS THAN A YEAR LAST MAY ORACLE STRUCK A PACT WITH U S WEST INC OF DENVER TO SUPPLY INFORMATION SERVICES BASED ON THE ORACLE MEDIA SERVER IN JANUARY BELL ATLANTIC CORP OF ARLINGTON VA TAPPED ORACLE SOFTWARE AND CONSULTING SERVICES FOR ITS PLANNED INTERACTIVE BUSINESS 9403030038 940303 BUSINESS BRIEF BANK OF BOSTON CORP CONCERN TO PAY 118 MILLION TO ACQUIRE PIONEER BANK BANK OF BOSTON CORP BOSTON SAID IT AGREED TO ACQUIRE CLOSELY HELD PIONEER BANK FOR 118 MILLION THE BANK OF BOSTON ACQUISITION OF THE MALDEN MASS BANK IS ONE OF EIGHT SINCE MAY 1990 TOTTERING IN THE WAKE OF A REAL ESTATE BUST AND AN ECONOMIC RECESSION IN NEW ENGLAND A NUMBER OF SMALL BANKS HAVE CONTINUED TO MERGE WITH LARGER COMPETITORS LIKE BANK OF BOSTON PIONEER HAS ASSETS OF 773 MILLION BANK OF BOSTON WITH ASSETS OF 406 BILLION IS THE SECONDLARGEST BANK IN THE REGION STILL PENDING IS AN ACQUISITION BY BANK OF BOSTON OF BANKWORCESTER THE DEAL IS EXPECTED TO CLOSE THIS SPRING SEPARATELY SHAWMUT NATIONAL CORP NEW ENGLAND'S THIRDLARGEST BANK SAID IT AGREED TO ACQUIRE COHASSET SAVINGS BANK FOR 169 MILLION OR 16 A SHARE COHASSET SAVINGS OF COHASSET MASS HAS 78 MILLION IN ASSETS SHAWMUT BASED IN HARTFORD CONN HAS 27 BILLION IN ASSETS 9403030037 940303 WHERE IT HURTS BETS ON FOREIGN DEBT GO BAD AND PUNISH BIG PLAYERS IN US BANKERS TRUST AND OTHERS FEEL PAIN FROM EUROPE AND EMERGING MARKETS' STEINHARDT TAKES A BIG HIT A WALL STREET JOURNAL ROUNDUP FLYING HIGH CAN BE DANGEROUS AFTER YEARS OF LUSH GAINS TRADING STOCKS BONDS AND CURRENCIES AROUND THE GLOBE SOME OF THE WORLD'S SAVVIEST TRADING FIRMS ARE BEING STUNG BADLY AS ONE MARKET AFTER ANOTHER GOES AGAINST THEIR BOLD BETS WAVES OF HEAVY SELLING THAT BEGAN IN CURRENCY MARKETS WEEKS AGO AND SPREAD TO BONDS AND NOW STOCKS HAVE CAUGHT SOME OF THESE TRADERS IN AN UNDERTOW THAT THREATENS TO DRAIN AWAY THE FAT TRADING PROFITS THEIR INVESTORS HAVE COME TO COUNT ON FROM BLUECHIP FIRMS LIKE BANKERS TRUST NEW YORK CORP TO INVESTMENT GUNSLINGERS LIKE GEORGE SOROS AND MICHAEL STEINHARDT THE LOSSES THAT ARE PILING UP ARE ALREADY STAGGERING YESTERDAY RUMORS THAT BANKERS TRUST'S TRADERS HAD LOST HUNDREDS OF MILLIONS OF DOLLARS IN RECENT WEEKS CREATED SUCH A WAVE OF SELL ORDERS FOR THE BANK'S STOCK THAT ITS OPENING ON THE NEW YORK STOCK EXCHANGE WAS DELAYED BANKERS TRUST TOOK THE UNUSUAL STEP OF ANNOUNCING THAT IT WAS PROFITABLE THUS FAR IN 1994 THE STOCK FINALLY ENDED THE DAY DOWN 225 AT 7850 SHARES OF JP MORGAN & CO ANOTHER BIG BANK THAT DEPENDS HEAVILY ON TRADING PROFITS FELL 125 TO 6625 THE SETBACKS INCLUDE SOME OF THE BIG PRIVATE INVESTMENT GROUPS CALLED HEDGE FUNDS A FUND RUN BY MR SOROS PUBLICLY ACKNOWLEDGED LAST WEEK THAT ITS TRADING OPERATION HAD TAKEN A 600 MILLION HIT IN GLOBAL MARKETS SOME OF WHICH HAS SINCE BEEN RECOVERED AND MR STEINHARDT THE BRASH NEW YORKBASED SPECULATOR HAS LOST BETWEEN 15 AND 19 IN THE FUNDS HE MANAGES ACCORDING TO A PERSON FAMILIAR WITH THE LOSSES THAT IS THE EQUIVALENT OF ABOUT 650 MILLION ALL THIS IS QUITE REMOVED FROM THE INVESTMENT MILIEU OF THE AVERAGE PARTICIPANT IN THE STOCK AND BOND MARKETS THOUGH MANY OF THESE SOCALLED LITTLE GUYS HAVE BEEN EAGERLY PUMPING MONEY INTO MARKETS BOTH HERE AND ABROAD FOR TWO YEARS THEY SEEM UNPERTURBED BY THE FUROR SURROUNDING THE HOTSHOTS STILL SOME EXPERTS FRET THAT IF THE BIG TRADERS' BEATINGS CONTINUE MUCH LONGER SLIDING PRICES FOR SECURITIES RANGING FROM HIGHQUALITY US TREASURY BONDS TO OBSCURE STOCKS TRADED ON EXCHANGES IN MALAYSIA AND PERU COULD SET OTHERS TO THINKING ABOUT TRIMMING THEIR EXPOSURE MILITATING AGAINST ANY MASS EXODUS THOUGH IS THE FACT THAT THE ECONOMIC FUNDAMENTALS THAT LURED INVESTORS IN THE FIRST PLACE REMAIN INTACT THE US ECONOMY IS REBOUNDING STRONGLY WITH INFLATION UNDER CONTROL MANY EMERGING NATIONS ARE CONTINUING TO GROW RAPIDLY AND EVEN RECESSIONRAVAGED EUROPE IS LOOKING LESS FRAIL THE HEART IS RULING OVER THE HEAD SAYS HARI HARIHARAN MANAGING DIRECTOR AT SANTANDER NEW WORLD INVESTMENTS A MONEYMANAGEMENT UNIT OF A BIG SPANISH BANK EVERYONE'S RUNNING FOR SHELTER LOSSES FIRST SHOWED UP JUST WHERE ONE MIGHT EXPECT AMONG THOSE TRADERS TAKING THE BIGGEST RISKS ESPECIALLY HEDGE FUNDS ONE OF THE BIGGEST BETS SOME MADE THIS YEAR WAS THAT EUROPEAN BOND PRICES WOULD RISE THEY BORROWED BILLIONS FROM BANKS TO BUY BONDS ON THE WAY UP THE HEAVY CREDIT PUMPED THESE FUNDS' PERFORMANCES LIKE STEROIDS IN A BODYBUILDER WITH A MERE 1 BILLION AN ENTERPRISING MANAGER MIGHT CONTROL AS MUCH AS 10 BILLION OF FRENCH BONDS WHEN PRICES WENT THE OTHER WAY OF COURSE THE HEAT WAS ON NOT ONLY DID THE FUNDS' BORROWING COSTS RISE BUT THE VALUE OF THEIR BOND HOLDINGS SANK AT THE SAME TIME BANKS THAT HAD EXTENDED THEM THE CREDIT BEGAN PRESSING THE FUNDS TO ANTE UP MORE COLLATERAL THE SQUEEZE FORCED THE FUNDS TO DUMP AN ESTIMATED 60 BILLION OF EUROPEAN BONDS ALONE TRADERS SAY ACCORDING TO ONE EUROPEAN BANKER MR STEINHARDT'S FUNDS WERE SO PRESSED BY HIS LENDERS THAT THEY UNLOADED 1 BILLION WORTH OF MOSTLY GERMAN BONDS IN A SINGLE DAY THROUGH ONE FIRM SIMILAR SCENARIOS OCCURRED IN FINANCIAL MARKETS HERE IN JAPAN AND IN MANY EMERGING NATIONS MANY BIG COMMERCIAL AND INVESTMENT BANKS DON'T JUST LEND TO HEDGE FUNDS THEY ACT LIKE THEM TOO THEIR PROPRIETARY TRADING DESKS WHICH TRADE THEIR FIRMS' OWN CAPITAL HAVE MUSHROOMED IN THE LAST FEW YEARS AS BANKS HAVE LEARNED HOW PROFITABLE TRADING CAN BE AT LEAST IN GOOD TIMES AND THE PAST FEW YEARS HAVE BEEN EXCEPTIONALLY GOOD LAST YEAR ALONE JP MORGAN HAD TRADING REVENUE OF MORE THAN 2 BILLION WHILE BANKERS TRUST GENERATED MORE THAN 16 BILLION OF COURSE ANY SOPHISTICATED PLAYER KNOWS YOU DON'T WIN THEM ALL AND IS PREPARED TO ABSORB OCCASIONAL HITS IN LINE WITH THE RISKS TAKEN BUT WHILE THE HEDGE FUNDS MAY PLAY FAST AND LOOSE WITH THEIR SPECULATIONS THE BANKS GENERALLY HAVE RULES THAT REQUIRE TRADERS TO GET OUT OF THEIR TRADING POSITIONS IF THEY LOSE A CERTAIN AMOUNT OF MONEY WITHIN A SPECIFIED PERIOD OF TIME SUCH RULES ARE INTENDED TO LIMIT THE BANKS' LOSSES BUT IN THE EVENT OF A MARKET ROUT THE RULES CAN EXACERBATE THE SLIDE AS THE MARKET STARTS TO SLIP AND SLIDE DOWN THEY SELL A LITTLE AS THE MARKET GOES DOWN SOME MORE THEY SELL MORE SAYS A SENIOR PROPRIETARY TRADER AT A BIG US INVESTMENT BANK OF HIS OWN DEALERS AND THOSE AT SIMILAR INSTITUTIONS THEY BEGIN TO CAUSE WHAT THEY ARE TRYING TO AVOID THEIR LIQUIDATION CAUSES FURTHER LIQUIDATIONS SAYS ANOTHER TRADER ONE GUY STARTS TO SELL THEN THE NEXT GUY STARTS TO SELL AND IT JUST HAS A SNOWBALL EFFECT THE SNOWBALLING IS TRYING EVEN THE STEELY NERVES OF SENIOR TRADING MANAGERS AT THE FIRMS YESTERDAY PROPRIETARY TRADERS AT BANKERS TRUST WERE CALLED OFF THE FLOOR SEVERELY CRITICIZED SEVERELY REPRIMANDED AND CURTAILED SAYS A SENIOR EXECUTIVE AT A BIG EUROPEAN BANK THEY'VE HAD BIG LOSSES BUT NOT ENOUGH TO TAKE THEM OUT OF BUSINESS THEY CAN TAKE A 250 MILLION CAN TAKE A 300 MILLION HIT BUT EVEN BEFORE THE ADMONISHMENT BANKERS TRUST TRADERS WERE UNDER PRESSURE THEY LIKE EVERYBODY ELSE ARE GOING THROUGH TOUGH TIMES THEY HAVE TRADERS WHO HAVE BEEN TOLD TO STOP BECAUSE THEY'VE REACHED THEIR LOSS LIMITS SAYS A TRADER AT ANOTHER US BANK IT'S CALLED BEING PUT IN THE PENALTY BOX AND NO DOUBT THERE ARE A LOT OF TRADERS IN THE PENALTY BOX A BANKERS TRUST SPOKESMAN DECLINES TO COMMENT INVESTMENT BANKS HAVE ANOTHER PROBLEM TOO AS MARKET MAKERS IN VARIOUS TYPES OF SECURITIES AROUND THE WORLD THEY ARE OBLIGATED TO BUY WHAT THEIR CLIENTS INCLUDING THE BIG HEDGE FUNDS WANT TO SELL WHEN INVESTORS ARE TRYING TO SELL POSITIONS OF 50 MILLION TO 100 MILLION YOU WANT TO BE THERE FOR YOUR CLIENTS BUT IT IS VERY DIFFICULT TO PROTECT YOURSELF SAYS PIERRE DURAN MANAGING DIRECTOR IN CHARGE OF EMERGINGMARKET SALES AND TRADING AT BANKERS TRUST MR DURAN SAYS THAT DESPITE SIZABLE LOSSES IN EMERGINGMARKET SECURITIES IN THE PAST FEW TRADING DAYS HIS DIVISION REMAINS DEEPLY IN THE BLACK FOR THE YEAR BUT HE ADDS YOU WIN SOME YOU LOSE SOME IF YOU HAVE TO GIVE A LITTLE BIT BACK SO BE IT ONE WAY THAT BIG TRADERS TRY TO MANAGE THEIR RISKS IS TO HAVE INVESTMENTS AROUND THE WORLD IN STOCKS BONDS CURRENCIES AND OTHER ASSETS THE THEORY HAS BEEN THAT BECAUSE THESE MARKETS DON'T ZIGZAG TOGETHER LOSSES IN ANY ONE ARENA WILL BE MORE THAN OFFSET BY GAINS IN OTHER AREAS BUT IN THE PAST FEW WEEKS MOST MARKETS HAVE BEEN MOVING TOGETHER AND THE DIRECTION HAS BEEN DOWN IT IS AMAZING HOW THESE GLOBAL FINANCIAL MARKETS ARE SO MUCH MORE INTEGRATED THAN WAS THOUGHT SAYS MR HARIHARAN AT SANTANDER NEW WORLD MANY ANALYSTS IDENTIFY THE ROOT OF THE TROUBLES IN RISING US INTEREST RATES AND IRONICALLY BASED ON WIDESPREAD ASSUMPTIONS THAT INFLATION IN THIS COUNTRY IS STILL WELL UNDER CONTROL IT ISN'T CLEAR THAT RATES SHOULD BE RISING NEVERTHELESS RISING THEY ARE AND THAT IS CHANGING A LOT OF INVESTMENT EQUATIONS FIRST TO FEEL THE HIT WAS THE US BOND MARKET WHERE SAVVY TRADERS DON'T WANT TO BE STUCK WITH LOWYIELDING INVESTMENTS WHEN THEY MIGHT BE ABLE TO SIT ON THE SIDELINES FOR THE MOMENT AND INVEST THAT MONEY LATER IN HIGHERYIELDING INVESTMENTS THE RISING INTEREST RATES IN TURN SENT A CHILL THROUGH THE US STOCK MARKET WHICH HAD ENJOYED ROBUST GAINS IN JANUARY FROM ITS HIGH OF 397836 ON JAN 31 THE DOW JONES INDUSTRIAL AVERAGE HAS DECLINED 37 BUT THE LOSSES IN THE US BOND AND STOCK MARKET PALE IN COMPARISON TO THE HITS TAKEN IN CERTAIN EUROPEAN AND LATIN AMERICAN MARKETS THAT ARE MUCH LESS LIQUID THOSE MARKETS HAD BEEN PROPPED UP AS MUCH BY THE HUGE VOLUMES OF MONEY FLEEING THE EXCEPTIONALLY LOW YIELDS IN THE US AS BY ANY FUNDAMENTAL PROSPECTS FOR LONGTERM GROWTH AND STABILITY WHAT WE'RE FACING QUITE CLEARLY IS A WORLDWIDE SELLOFF IN BONDS SAYS WAYNE LYSKI EXECUTIVE VICE PRESIDENT OF ALLIANCE CAPITAL MANAGEMENT LP OF NEW YORK IF US TREASURYS CONTINUE TO FALL I DON'T THINK YOU CAN HAVE ANY REAL RALLY OF CONSEQUENCE IN ANY EMERGINGMARKET COUNTRY AND MAYBE NOT IN EUROPE EITHER IN EUROPE SELLING WAS SPARKED BY FEARS THAT THE GERMAN CENTRAL BANK MIGHT HALT THE TREND TO EASIER CREDIT THE SOURCE OF THE CONCERN WAS A 206 JUMP IN A MONEYSUPPLY MEASURE FOR JANUARY NERVOUS TRADERS SOLD EVEN THOUGH THERE WERE SPECIAL REASONS FOR THE MONEYSUPPLY INCREASE AND EVEN THOUGH AN OFFICIAL SAID THE CENTRAL BANK WAS STAYING THE COURSE EMERGING MARKETS HAVE BEEN PARTICULARLY HARD HIT OF LATE THEY HAD BEEN ENORMOUS BENEFICIARIES DURING THE PAST FEW YEARS OF THE DECLINE IN US INTEREST RATES INVESTORS WERE SO ENAMORED OF THE HIGH YIELDS OFFERED BY COUNTRIES LIKE MEXICO AND ARGENTINA THAT THEY WERE WILLING TO OVERLOOK HOW MUCH SUCH SMALL MARKETS COULD BE JERKED AROUND BY THE EBB AND FLOW OF FOREIGN INVESTORS' CAPITAL NOT TO MENTION THEIR VOLATILE HISTORY OF POLITICAL CORRUPTION DEFAULTS AND CURRENCY DEVALUATIONS AT THE HEIGHT OF THE LOVE AFFAIR BROKERAGE HOUSES LIKE SALOMON BROTHERS WERE CONFIDENTLY TELLING INVESTORS THAT THESE DEVELOPING FINANCIAL MARKETS WERE VIRTUALLY INVESTMENT GRADE BUT ALL THE ENTHUSIASM HINGED ON ONE CONDITION THAT HIGHER RETURNS COULDN'T BE HAD IN SAFER INVESTMENTS THAT'S WHY THE RISE IN US INTEREST RATES TILTED THE RISKREWARD EQUATION FOR MILLIONS OF INVESTORS VIRTUALLY OVERNIGHT SUDDENLY THERE WAS THE PROSPECT OF IMPROVING RETURNS IN THE RELATIVELY DOCILE US BONDS TO GET READY TO BUY US BONDS FIRMS MOVED QUICKLY TO TAKE THEIR SUBSTANTIAL STOCK AND BOND PROFITS OUT OF THOSE OVERSEAS MARKETS TOUCHING OFF PRICE SLIDES THE DECLINES ACCELERATED AS HIGHLY LEVERAGED TRADERS CAME UNDER PRESSURE IN EUROPE AND THE US SOME CHOSE TO SELL THEIR PROFITABLE EMERGINGMARKETS SECURITIES TO USE AS COLLATERAL ON OTHER LOSING POSITIONS THESE SPECULATIVE INVESTORS HAVE HAD PROBLEMS ELSEWHERE SAYS IGNACIO SOSA HEAD OF EMERGINGMARKET SALES AT BANKERS TRUST SO THE FIRST THING THEY DO IS SELL ASSETS THAT HAVE GONE UP THE MOST SO FAR SOME 25 BILLION IN RED INK HAS FLOWED FROM THE GLOBAL PORTFOLIOS OF HEDGE FUNDS ALONE AND THAT DOESN'T COUNT THE LOSSES SUSTAINED BY BANKERS TRUST AND OTHER BIG BROKERS AND DEALERS STILL THERE IS SOME EARLY EVIDENCE THAT THE WORST MAY BE OVER FOR SOME OF THE BIG TRADERS MANY HAVE ALREADY BEEN FORCED TO REDUCE THEIR BORROWINGS A MOVE THAT WILL EASE SOME OF THE PRESSURE TO CONTINUE SELLING DAVID DEWIND A PORTFOLIO MANAGER AT STROME SUSSKIND & CO A HEDGE FUND IN SANTA MONICA CALIF SAYS THAT AS OF LAST WEEK THE FIRM HAD ELIMINATED ITS BORROWINGS WHICH HAD RUN AS MUCH AS FOUR TIMES ITS TOTAL CAPITAL MR DEWIND SAYS HE WON'T BE MOVING BACK INTO BIG SPECULATIVE POSITIONS UNTIL HE IS SURE THINGS HAVE STABILIZED WE'D RATHER MISS THE FIRST 10 OF A MOVE UPWARD TO SEE IF IT'S REAL RATHER THAN TRY TO CATCH A FALLING KNIFE AND THAT'S WHAT IT IS RIGHT NOW HE SAYS BUT COULD IT GET WORSE BEFORE IT GETS BETTER A LOT DEPENDS ON THE SMALL INVESTORS WHO HAVE PILED INTO THE US AND FOREIGN STOCKS AND BONDS THROUGH MUTUAL FUNDS SO FAR MUTUALFUND MANAGERS HAVE BEEN CONSERVATIVE SELLERS TRADERS SAY BUT IF A FLOOD OF REDEMPTIONS FROM INDIVIDUALS SHOULD FORCE THEIR HANDS A WHOLE NEW WAVE OF SELLING COULD WASH OVER THE MARKETS FIDELITY INVESTMENTS ONE OF THE BIGGEST INVESTORS IN DEVELOPINGNATION BOND MARKETS SAYS IT IS TAKING A CAUTIOUS APPROACH WE'LL WAIT OUT THE STORM BEFORE WE RENEW THE BIG BUYING PROGRAMS SAYS LINCOLN ANDERSON DIRECTOR OF GLOBAL RESEARCH OUTSIDE THE US TREASURY MARKET WE'RE ADOPTING A WAITANDSEE ATTITUDE TO SEE WHAT THE HECK IS DRIVING THIS MARKET 9403030036 940303 BUSINESS BRIEF LAWRENCE INSURANCE GROUP INC COMPANY SEES LOSS FOR 1993 DUE TO POOR RESULTS AT UNIT LAWRENCE INSURANCE GROUP INC SAID IT EXPECTS TO POST A LOSS OF ABOUT 10 MILLION FOR 1993 BECAUSE OF CONTINUING ADVERSE RESULTS AT ITS UNITED COMMUNITY INSURANCE CO UNIT IN ADDITION CHAIRMAN ALBERT W LAWRENCE SAID HE COULDN'T RULE OUT A FURTHER DETERIORATION OF UNITED COMMUNITY'S POSITION AS THE COMPANY DETERMINES EXPECTED LOSSES IN THE WORKERS' COMPENSATION AUTO AND LIABILITY LINES OF BUSINESS LAWRENCE SAID THE OTHER COMPANIES IN THE GROUP HAD SATISFACTORY RESULTS BUT COULDN'T COMPENSATE FOR UCIC'S TROUBLES THE COMPANY SAID UCIC HAD DROPPED OR GREATLY REDUCED ITS WEAKER LINES OF BUSINESS OVER THE PAST 2 1/2 YEARS BUT THAT THE AFTEREFFECTS WOULD REMAIN FOR SOME TIME MR LAWRENCE SAID THE DOWNSIZING OF UCIC IS LIKELY TO RESULT IN JOB CUTS LAWRENCE'S SHARES SANK 125 CENTS TO 3375 IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY 9403030035 940303 SMALL STOCK FOCUS STOCKS FALL BUT NARROW EARLIER LOSS AMID SHARP SWINGS IN BOND MARKET BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL SMALLCOMPANY STOCKS NARROWED A STEEP EARLY LOSS BUT PRICES NEVER PULLED INTO POSITIVE TERRITORY AS MARKET PLAYERS RAN FIRST TO BIG CYCLICALS SHARP SWINGS IN THE BOND MARKET CREATED EXTREME VOLATILITY AMONG EQUITIES THE DOW JONES INDUSTRIAL AVERAGE FELL MORE THAN 50 POINTS THIS MORNING TRIGGERING THE UPTICK RULE WHICH RESTRICTS PROGRAM TRADING BY THE CLOSE THE BLUECHIP BAROMETER HAD ADVANCED NEARLY 23 POINTS SMALLER STOCKS WEREN'T QUITE AS LUCKY BUT MANAGED TO OVERCOME PART OF THE EARLY BLOODLETTING THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS FINISHED 154 OR 058 LOWER AT 26280 THE NASDAQ STOCK MARKET'S COMPOSITE INDEX FELL 517 OR 066 TO 78347 WHEN THE LONG BOND PLUNGED A FULL POINT IN EARLY TRADING THE RUSSELL SANK TO A LOW OF 25948 THE NASDAQ COMPOSITE SLID TO 77188 AT ITS WORST LEVEL BUT THAT CHANGED WHEN GOVERNMENT SECURITIES REVERSED COURSE BONDS TOPPLED FOLLOWING THE RELEASE OF A JANUARY PERSONALINCOME REPORT THAT RAISED MORE INFLATION CONCERNS AND THEN CLIMBED ON WHAT MARKET WATCHERS SAID WAS A TECHNICAL BOUNCE BECAUSE OF AN OVERSOLD CONDITION WHEN THE BONDS TURNED WE TURNED SAID PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS I THINK WE HELD UP VERY WELL UNDER THE CIRCUMSTANCES ALTHOUGH BONDS PICKED UP RATESENSITIVE STOCKS WERE THE WEAKEST COLONIAL BANCGROUP MONTGOMERY ALA FELL 1 1/2 TO 18 3/4 CAPITAL GUARANTY SAN FRANCISCO DROPPED 1 5/8 TO 16 5/8 ON THE BIG BOARD AND COUNTRYWIDE MORTGAGE INVESTMENTS PASADENA CALIF SLIPPED 1/2 TO 10 1/8 ALSO ON THE NEW YORK STOCK EXCHANGE OTHER DECLINERS INCLUDED FA TUCKER GROUP WHICH PLUMMETED 5/8 OR 31 TO 1 3/8 ON THE AMERICAN STOCK EXCHANGE THE CHICAGO PROVIDER OF ELECTRICALCONTRACTOR SERVICES SAID IT HAD SERIOUS LIQUIDITY PROBLEMS AND ADDED THAT ITS MAIN US SUBSIDIARY HAS DEFAULTED ON A CONTRACT WITH THE CITY OF CLEVELAND MACE SECURITY INTERNATIONAL PLUNGED 1 1/4 TO 6 THE BENNINGTON VT SECURITYPRODUCTS COMPANY SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF THREE CENTS TO FIVE CENTS A SHARE MACE WENT PUBLIC IN NOVEMBER BIG BOARDTRADED HORIZON HEALTHCARE AN ALBUQUERQUE NM OPERATOR OF HEALTHCARE FACILITIES SLIPPED 1 1/4 TO 22 1/2 AFTER ALEX BROWN & SONS ANALYST DEBORAH LAWSON CUT HER RATING TO BUY FROM STRONG BUY THE COMPANY'S STOCK PRICE ALSO FELL TUESDAY APPARENTLY ON NEWS THAT ANALYSTS RECEIVED A MAILING FROM A COMPANY UNION CONTAINING A MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH REPORT OUTLINING A RESTRICTIVE AGREEMENT THE COMPANY REACHED WITH HORIZON IN ORDER TO RECEIVE NURSINGHOME LICENSES IN MASSACHUSETTS AMONG GAINERS AN INITIAL BUY RATING FROM WERTHEIM SCHRODER ANALYST ALFRED V TOBIA JR SENT BROADWAY & SEYMOUR UP 1 TO 12 3/4 MR TOBIA ALSO ADDED THE CHARLOTTE NC PROVIDER OF INFORMATIONTECHNOLOGY SOLUTIONS TO THE BROKERAGE FIRM'S RECOMMENDED LIST WESTERN DIGITAL ROSE 2 1/4 TO 18 ON THE NEW YORK STOCK EXCHANGE AFTER IT SERVED UP A POSITIVE FISCAL THIRDQUARTER EARNINGS OUTLOOK THE IRVINE CALIF MAKER OF COMPUTERDISK DRIVES SAID IT EXPECTS NET INCOME FOR THE QUARTER TO EXCEED 55 CENTS A SHARE WELL ABOVE ANALYSTS' PROJECTIONS OF 28 CENTS TO 42 CENTS WHOLESOME & HEARTY FOODS JUMPED 2 TO 25 3/4 ON THE HEELS OF A POSITIVE ARTICLE IN THE WALL STREET JOURNAL ACCORDING TO THE ARTICLE HEAVY BUYING HAS SENT THE PORTLAND ORE FROZEN MEATLESS PRODUCTS COMPANY'S STOCK UP FROM ITS SPLITADJUSTED 52WEEK LOW OF 3 A SHARE TO ITS CLOSE OF 2375 TUESDAY THE STOCK WAS LAST YEAR'S TOP PERFORMER ON NASDAQ PIONEER FINANCIAL SERVICES ADDED 5/8 TO 13 1/2 ON THE BIG BOARD THE SCHAUMBURG ILL INSURER SAID IT EARNED 54 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH A LOSS OF 298 A SHARE A YEAR AGO NEW ISSUE QUALITY DINING MISHAWAKA IND ROSE TO 12 1/8 ABOVE ITS OFFERING PRICE OF 1150 LATE TUESDAY THE OPERATOR OF BURGER KING AND CHILI'S RESTAURANTS SAID PROCEEDS WILL BE USED TO REPAY DEBT TO REPAY NOTES ISSUED AS PAYMENT OF SPECIAL DISTRIBUTIONS TO EXISTING SHAREHOLDERS AND TO FUND EXPANSION PLANS ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SAID THE BLUE CHIPS HAD A SELLING CLIMAX THIS MORNING AND SAW THEIR PEAK DOWNSIDE WE'VE BEEN BEARISH FOR A MONTH IN A BULLISH MARKET AND WHEN THE MARKET LIFTS WHERE DO PEOPLE HAVE THE COURAGE TO PUT THEIR MONEYINTO BIG NAME BIG CYCLICALS MR GOLDMAN SAID THE BOND MARKET RECOVERED BASED ON A GROWING REALIZATION THAT INFLATION ISN'T GOING TO COME RAGING BACK MR GOLDMAN ADDED WHEN COOLER HEADS PREVAIL PEOPLE WILL REALIZE THAT THE MOVE BY THE FEDERAL RESERVE ON FEB 4 WAS A POSITIVE PREEMPTIVE STRIKE WE CAN STEP ON THE BRAKES LIGHTLY NOW OR JAM ON THE BRAKES IN SIX MONTHS 9403030034 940303 BUSINESS BRIEF GENERAL MOTORS CORP AUTO MAKER UAW REACH TENTATIVE PACT IN OKLAHOMA GENERAL MOTORS CORP SAID IT REACHED A TENTATIVE LABOR CONTRACT AT ITS ASSEMBLY PLANT IN OKLAHOMA CITY AVERTING A POSSIBLE STRIKE BOTH GM AND THE UNITED AUTO WORKERS UNION DECLINED TO RELEASE SPECIFICS ON THE TENTATIVE PACT WHICH STILL MUST BE RATIFIED BY RANKANDFILE UNION MEMBERS BEFORE THE SETTLEMENT THE UNION SAID ITS BIGGEST COMPLAINT WAS REPETITIVE STRESS INJURIES CAUSED BY A FASTER WORK PACE IN THE FACTORY MIKE HERMES VICE PRESIDENT FOR UAW LOCAL 1999 SAID THE NEW AGREEMENT WILL RESOLVE THAT ISSUE BUT WOULDN'T SAY HOW THE OKLAHOMA CITY PLANT WHICH EMPLOYS 4450 HOURLY WORKERS BUILDS THE OLDSMOBILE CUTLASS CIERA AND BUICK CENTURY MIDSIZE CARS 9403030033 940303 INTERNATIONAL NISSAN WILL REDUCE VARIETIES OF CHASSIS IN COSTCUTTING BID TOKYO NISSAN MOTOR CO PLANS TO SCRAP PRODUCTION OF SEVERAL VARIETIES OF VEHICLE CHASSIS OVER THE NEXT FOUR YEARS IN THE STRUGGLING CAR MAKER'S LATEST ATTEMPT TO RESTORE PROFITABILITY NISSAN JAPAN'S SECONDLARGEST CAR COMPANY SAYS IT MAKES MORE THAN 28 DIFFERENT KINDS OF CHASSIS THE BACKBONE UPON WHICH CARS ARE ASSEMBLED IT WANTS TO REDUCE THAT NUMBER BY ROUGHLY A THIRD A MOVE THAT COULD MEAN TOTAL SAVINGS OF AS MUCH AS 100 BILLION YEN 9565 MILLION FOR NISSAN THE COMPANY SAID THE MOVE CAPS A DIFFICULT DOWNTURN IN WHICH NISSAN ANNOUNCED MEASURES FROM FACTORY CLOSINGS TO STAFF CUTS IN HOPES OF STEMMING SHARP LOSSES NISSAN HAD A 1081 BILLION YEN PRETAX LOSS FOR THE YEAR ENDED MARCH 31 1993 AND PROBABLY WILL RECORD BIGGER LOSSES IN THE CURRENT YEAR STREAMLINING CHASSIS PRODUCTION IS ONE OF THE RESTRUCTURING PROGRAMS NISSAN IS DOING IN ORDER TO ENHANCE COMPETITIVENESS SPOKESMAN KOJI OKUDA SAID LIKE OTHER JAPANESE CAR MAKERS NISSAN'S SALES ARE FALLING 16 IN FEBRUARY FROM YEAR AGO LEVELS AMID ONE OF THE WORST RECESSIONS IN JAPAN IN DECADES MEANWHILE SALES AND REVENUE ABROAD ARE DOWN BECAUSE OF A DRAMATIC RISE IN THE YEN AGAINST THE DOLLAR OVER THE PAST YEAR ANALYSTS SAY THE GLOOMY CLIMATE IS FORCING NISSAN TO RECONSIDER AN EARLIER STRATEGY TO COMPETE HEAD ON WITH TOYOTA MOTOR CO JAPAN'S LARGEST AUTO MAKER 9403030032 940303 BUSINESS BRIEF CML GROUP INC NET IN FISCAL 2ND PERIOD ROSE 18 ON NORDICTRACK'S SALES CML GROUP INC ACTON MASS SAID NET INCOME FOR THE FISCAL SECOND QUARTER CLIMBED 18 TO 383 MILLION OR 74 CENTS A SHARE REFLECTING CONTINUED STRONG SALES OF ITS NORDICTRACK HOMEEXERCISE MACHINE IN THE YEAREARLIER QUARTER CML EARNED 325 MILLION OR 63 CENTS A SHARE SALES ROSE 25 TO 292 MILLION FROM 2364 MILLION THE LATEST QUARTER ENDED JAN 29 THE COMPANY SAID SALES IN ITS OTHER TWO DIVISIONS RETAILERS NATURE CO AND BRITCHES OF GEORGETOWNE ROSE SIGNIFICANTLY SALES AT NORDICTRACK THE COMPANY'S CASH COW INCREASED 25 CML SAID PROFIT MARGINS IN THE SECOND QUARTER WERE SQUEEZED BY INCREASED ADVERTISING FOR SOME OF NORDICTRACK'S PRODUCT LINES BUT MEDIA EXPENDITURES HAVE BEEN CUT SUBSTANTIALLY WHICH IS EXPECTED TO IMPROVE EARNINGS IN THE COMING QUARTERS BY EQUAL MEASURE CHAIRMAN CHARLES M LEIGHTON REAFFIRMED THE COMPANY'S GOAL OF INCREASING EARNINGS IN THE SECOND HALF BY 20 9403030031 940303 BUSINESS BRIEF SONOCO PRODUCTS CO COMPANY IS SEEKING TO BUY BRITISH PRODUCER OF LABELS SONOCO PRODUCTS CO SAID IT OFFERED TO PURCHASE M HARLAND & SON LTD A BRITISH LABEL PRODUCER FOR BETWEEN 30 MILLION AND 40 MILLION SONOCO A HARTSVILLE SC MAKER OF PACKAGING PRODUCTS SAID THE OFFER IS SUBJECT TO APPROVAL OF EACH COMPANY'S BOARD A SATISFACTORY DUEDILIGENCE STUDY BY SONOCO AND NEGOTIATION AND EXECUTION OF A DEFINITIVE AGREEMENT HARLAND BASED IN HULL ENGLAND HAS ANNUAL REVENUE OF ABOUT 32 MILLION 9403030030 940303 BUSINESS BRIEF NEW VALLEY CORP FIRM POSTS 4THPERIOD NET AIDED BY CHAPTER 11 STATUS NEW VALLEY CORP WHICH IS OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION REPORTED A FOURTHQUARTER PROFIT DUE IN PART BECAUSE IT ISN'T REQUIRED TO MAKE CERTAIN HIGHINTEREST PAYMENTS NET INCOME WAS 98 MILLION COMPARED WITH A LOSS OF 58 MILLION A YEAR AGO ON A PERSHARE BASIS NEW VALLEY IN PARAMUS NJ REPORTED A 1993 FOURTHQUARTER LOSS OF FOUR CENTS A SHARE COMPARED WITH A LOSS OF 12 CENTS A SHARE A YEAR EARLIER REFLECTING UNDECLARED PREFERRED DIVIDENDS OF 182 MILLION IN THE MORE RECENT QUARTER AND 159 MILLION A YEAR EARLIER ACCORDING TO A SPOKESMAN NEW VALLEY WOULD HAVE HAD INTEREST EXPENSES OF 117 MILLION IN THE FOURTH QUARTER HAD IT NOT BEEN UNDER CHAPTER 11 PROTECTION REVENUE ROSE 95 TO 1218 MILLION FROM 1113 MILLION DUE TO CONTINUED GROWTH IN NEW VALLEY'S MAIN MONEYTRANSFER BUSINESS WHICH IS OPERATED BY THE COMPANY'S UNIT WESTERN UNION FINANCIAL SERVICES INC NEW VALLEY ENTERED CHAPTER 11 PROTECTION IN MARCH 1993 9403030029 940303 US MERCHANDISE TRADE DEFICIT IMPROVED IN FOURTH QUARTER WASHINGTON THE US MERCHANDISE TRADE DEFICIT ON A BALANCEOFPAYMENTS BASIS NARROWED IN THE FOURTH QUARTER TO A SEASONALLY ADJUSTED 3278 BILLION THE COMMERCE DEPARTMENT SAID THE IMPROVEMENT FROM THE THIRD PERIOD WAS THE RESULT OF A SURGE IN EXPORTS THAT OUTPACED AN INCREASE IN IMPORTS ANALYSTS DON'T EXPECT THE TREND TO CONTINUE BECAUSE OF CONTINUED ECONOMIC PROBLEMS OF MAJOR US TRADING PARTNERS IN THE THIRD QUARTER THE DEFICIT ON THE SAME BASIS TOTALED A REVISED 3597 BILLION FOR THE YEAR THE BALANCEOFPAYMENTS DEFICIT WIDENED SHARPLY TO 13248 BILLION IN 1993 FROM 9614 BILLION IN 1992 IT WAS THE FIRST TIME IN THREE YEARS THE DEFICIT EXCEEDED 100 BILLION THESE QUARTERLY FIGURES ARE BASED ON THE MERCHANDISE TRADE FIGURES REPORTED MONTHLY BY THE DEPARTMENT BUT THEY EXCLUDE MILITARY SALES AND REFLECT CERTAIN OTHER ADJUSTMENTS THE DEPARTMENT IS DISCONTINUING THIS QUARTERLY REPORT AND ON MARCH 22 WILL INTRODUCE A NEW REPORT ON MONTHLY INTERNATIONAL TRADE IN GOODS AND SERVICES WHICH WILL BE ADJUSTED ON A BALANCEOFPAYMENTS BASIS 9403030028 940303 INTERNATIONAL BRIEF GKN PLC PRETAX PROFIT FOR 1993 FELL AMID DROP IN PRODUCTION GKN PLC CONFIRMED THAT PRETAX PROFIT FOR 1993 FELL 20 FROM 1992 AS A RESULT OF HIGHER EXCEPTIONAL COSTS AND THE MOST SEVERE FALL IN EUROPEAN CAR AND COMMERCIAL VEHICLE PRODUCTION ON RECORD GKN PROVIDED EARNINGS ESTIMATES IN EARLY FEBRUARY WHEN IT LAUNCHED A HOSTILE BID FOR THE REMAINING SHARES IN WESTLAND GROUP PLC THAT IT DOESN'T ALREADY OWN PRETAX PROFIT FELL TO 975 MILLION FROM 1218 MILLION IN 1992 AS COSTS FROM LAYOFFS ATE INTO THE RESULTS GKN ALSO CONFIRMED PLANS TO PROCEED WITH THE 1FOR5 RIGHTS OFFERING OF ITS ORDINARY SHARES AT 480 PENCE 715 TO RAISE 248 MILLION TO HELP FUND ITS ACQUISITION OF WESTLAND CHAIRMAN SIR DAVID LEES SAID EUROPEAN AUTOMOTIVE MARKETS REMAIN WEAK AND THERE IS NO SIGN OF REAL IMPROVEMENT AS YET THE OUTLOOK FOR THE UK AND NORTH AMERICA CONTINUES TO IMPROVE HE SAID 9403030027 940303 BUSINESS BRIEF CHIQUITA BRANDS INTERNATIONAL INC JOHN MORRELL UNIT SELLS SPECIALTY MEAT TO SMG INC CHIQUITA BRANDS INTERNATIONAL INC CINCINNATI SAID ITS JOHN MORRELL & CO UNIT SOLD ITS SPECIALTY MEAT GROUP TO SMG INC TERMS WEREN'T DISCLOSED SMG A NEWLY FORMED COMPANY IS HEADED BY PETER K SHEA FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MORRELL SMG ACQUIRED THE LIGURIA MOSEY'S AND SCOTT PETERSEN BRANDS AS WELL AS THE EXCLUSIVE LICENSING RIGHTS TO THE NATHAN'S FAMOUS TRADEMARK FOR RETAIL PACKAGEDMEAT PRODUCTS CHIQUITA A MARKETER PROCESSOR AND PRODUCER OF FOOD PRODUCTS SAID THREE PRODUCTION FACILITIES ASSOCIATED WITH THE SPECIALTY MEAT GROUP WERE INCLUDED IN THE SALE 9403030026 940303 BUSINESS BRIEF ALCAN ALUMINIUM LTD CS FIRST BOSTON IS HIRED TO EXPLORE SALE OF DIVISIONS ALCAN ALUMINIUM LTD SAID IT HIRED CS FIRST BOSTON CORP TO EXPLORE OPTIONS FOR SELLING ALCAN'S BUILDINGPRODUCTS DIVISIONS IN THE US AND CANADA THE DIVISIONS HAD COMBINED SALES OF ABOUT 425 MILLION LAST YEAR AND EMPLOY 1800 PEOPLE THEY PRODUCE ALUMINUM VINYL AND STEEL GOODS SUCH AS SIDING AND WINDOWS THE MONTREAL ALUMINUM MAKER SAID THE DECISION FITS WITH ITS STRATEGIC PLAN TO FOCUS ON ITS SMELTING AND ROLLING OPERATIONS WHILE TRIMMING INVESTMENT IN DOWNSTREAM FABRICATING BUSINESSES 9403030025 940303 BUSINESS BRIEF RYLAND GROUP INC CONCERN SAYS 1STPERIOD NET MAY FALL SHORT OF ESTIMATES RYLAND GROUP INC SAID IT COULD NARROWLY MISS ANALYSTS' ESTIMATES OF FIRSTQUARTER PROFIT BECAUSE OF POOR WEATHER BUT IT EXPECTS TO POST STRONGER RESULTS IN 1994 ITS NEW CHIEF EXECUTIVE AND PRESIDENT R CHAD DREIER SAID HE EXPECTS RYLAND TO BUILD 9000 HOMES IN 1994 UP FROM 8050 LAST YEAR THE HOME BUILDER OF COLUMBIA MD SAID POOR WEATHER MAY MAKE IT DIFFICULT TO ACHIEVE ANALYSTS' FIRSTQUARTER ESTIMATES OF BETWEEN 4 MILLION OR 22 CENTS A SHARE AND 45 MILLION OR 25 CENTS A SHARE BUT EARNINGS WON'T BE SIGNIFICANTLY OFF MR DREIER SAID IN THE YEARAGO FIRST PERIOD RYLAND HAD NET OF 38 CENTS A SHARE THE CHIEF EXECUTIVE SAID HE WAS COMFORTABLE WITH ANALYSTS' PROFIT ESTIMATES FOR 1994 RYLAND IS EXPECTED TO EARN BETWEEN 287 MILLION OR 185 A SHARE AND 325 MILLION OR 210 A SHARE IN 1993 THE COMPANY HAD A LOSS OF 27 MILLION OR 34 CENTS A SHARE ON REVENUE OF 147 BILLION 9403030024 940303 BUSINESS BRIEF WABAN INC FISCAL FOURTHQUARTER LOSS REFLECTS 602 MILLION CHARGE WABAN INC TOOK A CHARGE OF 602 MILLION TO CLOSE OR RELOCATE PART OF ITS OPERATIONS AND REPORTED A LOSS OF 449 MILLION OR 136 A SHARE FOR THE FOURTH QUARTER ENDED JAN 29 THAT COMPARES WITH NET INCOME OF 141 MILLION OR 42 CENTS A SHARE A YEAR AGO WABAN WHICH OPERATES TWO WAREHOUSESTYLE DISCOUNT CHAINS HOMEBASE AND BJ'S WHOLESALE CLUB HAD INDICATED IN NOVEMBER THAT IT PLANNED TO CLOSE OR RELOCATE ABOUT 16 OF ITS OLDER HOMEBASE STORES THE FOURTHQUARTER RESULTS ALSO INCLUDE A 13 MILLION CHARGE TO COVER THE COST OF RELOCATING THE FIRM'S BJ'S WHOLESALE CLUB IN SYRACUSE NY THE COMPANY SAID SALES DECLINED 51 TO 8903 MILLION FROM 9376 MILLION FOR THE YEAR WABAN HAD A LOSS OF 178 MILLION OR 56 CENTS A SHARE COMPARED WITH PROFIT OF 442 MILLION OR 133 A SHARE SALES CLIMBED 69 TO 359 BILLION 9403030023 940303 BERGEN BRUNSWIG WINS CONTRACT ORANGE CALIF BERGEN BRUNSWIG CORP SAID THE DEFENSE DEPARTMENT AWARDED IT A FIVEYEAR CONTRACT TO SUPPLY PHARMACEUTICALS TO 20 MILITARY HOSPITALS THE CONTRACT IS EXPECTED TO GENERATE 285 MILLION IN SALES BERGEN SAID 9403030022 940303 SENATE BANKING PANEL BACKS FED STAND ON TREASURY PLAN FOR REGULATING BANKS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF THE SENATE BANKING COMMITTEE ASKED THE TREASURY AND THE FEDERAL RESERVE BOARD TO RESOLVE THEIR DIFFERENCES OVER A PLAN TO STREAMLINE BANK REGULATION AFTER COMMITTEE MEMBERS STRONGLY ENDORSED THE FED A TREASURY PROPOSAL TO CONSOLIDATE THE REGULATORY FUNCTIONS OF FOUR BANK SUPERVISORY AGENCIES INTO A NEW FEDERAL BANKING COMMISSION WOULD REMOVE THE FED FROM HANDSON BANK REGULATION ALAN GREENSPAN FED CHAIRMAN TOLD THE COMMITTEE THAT THE TREASURY PLAN WOULD COMPLICATE THE EXECUTION OF MONETARY POLICY WEAKEN THE CENTRAL BANK'S ABILITY TO RESPOND TO FINANCIAL CRISES AND INCREASE THE CHANCES OF UNNECESSARILY RIGID BANK REGULATION DEMOCRATS AND REPUBLICANS LINED UP BEHIND MR GREENSPAN MAKING IT CLEAR THAT THE TREASURY PLAN DOESN'T HAVE THE VOTES TO PASS WITHOUT SUBSTANTIAL CHANGE THERE'S A LOT OF SUPPORT IN THE HOUSE AND THE SENATE FOR RETAINING THE INDEPENDENCE OF THE FEDERAL RESERVE BOARD SEN RICHARD SHELBY D ALA SAID DONALD RIEGLE D MICH THE SENATE BANKING PANEL'S CHAIRMAN AND A STRONG SUPPORTER OF THE TREASURY PROPOSAL ASKED MR GREENSPAN TO ATTEMPT TO WORK OUT HIS DIFFERENCES WITH TREASURY SECRETARY LLOYD BENTSEN DURING THE NEXT TWO WEEKS THE TWO FAILED TO REACH AN ACCORD LAST FALL SINCE THE TREASURY ANNOUNCED ITS PLAN THE BANKING INDUSTRY HAS STRONGLY SUPPORTED THE FED'S CONTENTION THAT THE CENTRAL BANK MUST CONTINUE TO PLAY A SIGNIFICANT ROLE IN BANK REGULATION AFTER TWO DAYS OF HEARINGS BEFORE THE SENATE PANEL MR GREENSPAN WOULD ENTER A SECOND ROUND OF NEGOTIATIONS WITH THE TREASURY HAVING A STRONG POLITICAL HAND MR GREENSPAN WENT OVER FOR THE COMMITTEE THE FED'S OWN LESSSWEEPING PROPOSAL FOR REGULATORY CONSOLIDATION THE FED WOULD FOLD THE COMPTROLLER OF THE CURRENCY THE REGULATORY FUNCTIONS OF THE FEDERAL DEPOSIT INSURANCE CORP AND THE OFFICE OF THRIFT SUPERVISION INTO A NEW FEDERAL BANKING COMMISSION WHICH WOULD REGULATE ABOUT 4000 NATIONALLY CHARTERED BANKS AND THRIFTS THE FED WOULD REGULATE ABOUT 7600 STATECHARTERED BANKS A MAJOR EXPANSION FROM THE 970 STATE BANKS IT CURRENTLY REGULATES THE GOAL IS TO ELIMINATE DUPLICATIVE REGULATION TODAY MOST BANKING ORGANIZATIONS ARE EXAMINED BY AT LEAST TWO FEDERAL REGULATORS UNDER THE TREASURY'S PLAN EVERY BANKING ORGANIZATION WOULD BE SUPERVISED AND EXAMINED BY THE FEDERAL BANKING COMMISSION WHICH ALSO WOULD ISSUE BANKING REGULATIONS UNDER THE FED'S PLAN BANKS WOULD BE REGULATED BY EITHER THE FED OR THE NEW AGENCY CURRENTLY THE FED SUPERVISES ALL BANKHOLDING COMPANIES THE FED PROPOSED ONE OF TWO PLANS FOR DEALING WITH THOSE EITHER ONE WOULD GIVE THE FED CONSIDERABLE REGULATORY CONTROL OVER THE NATION'S LARGEST BANKING COMPANIES SUCH AS CITICORP AND BANKAMERICA CORP EVEN THOUGH THEIR LEAD BANKS ARE NATIONALLY CHARTERED 9403030021 940303 CAN A 3YEAROLD MURDER IS A COURT THE PLACE TO DECIDE GIRL NOW 12 SAYS SHE KILLED HER COUSIN POLICE TRYING TO HELP CHARGE A FELONY BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI LAST FRIDAY AFTERNOON A 12YEAROLD GIRL ENTERED THE POLICE STATION HERE AND CONFESSED TO DROWNING HER INFANT COUSIN IN A BUCKET NEARLY A DECADE AGO A DEATH PREVIOUSLY RULED ACCIDENTAL THE COPS WERE CONFOUNDED LOCKING UP THE GIRL SEEMED LUDICROUS SHE WAS COOPERATIVE AND HARDLY MENACING WITH HER FOSTER MOTHER AND A SOCIAL WORKER BY HER SIDE POLICE TOOK THE CHILD'S STATEMENT AND THEN LET HER GO DROPPING HER OFF IN A SQUAD CAR SAYS SGT BOB DISBENNETT THERE'S NO WAY YOU CAN PROSECUTE SOMEONE WHO WAS A THREEYEAROLD WHEN THEY COMMITTED A CRIME HAMILTON COUNTY PROSECUTORS SAW IT DIFFERENTLY WHEN THEY HEARD OF THE CASE THEY BEGAN LOOKING FOR A WAY TO GET HER WHATEVER HELP THE STATE MIGHT PROVIDE A CHILD WITH A TROUBLED PAST THEIR SOLUTION WAS TO HAVE THE POLICE ARREST HER CHARGE MURDER FIRSTDEGREE FELONY AND SO THE NEXT DAY THE LITTLE GIRL WITH THE INITIALS JM QUIETLY RETURNED TO THE POLICE STATION WHERE SHE TURNED HERSELF IN AGAIN FOR A CRIME SHE SAYS SHE COMMITTED BUT KEPT SECRET FOR MORE THAN NINE YEARS THIS TIME JM WAS GIVEN THE RIGHT TO REMAIN SILENT THEN SHE WAS GIVEN A RIDE TO THE JUVENILE DETENTION CENTER WHERE SHE SPENT THE NIGHT IN CUSTODY ALONE JM WAS SENT HOME ON SUNDAY AND RETURNED TO THE DETENTION CENTER ON MONDAY MORNING FOR A HEARING SHE HAD NO LAWYER UNTIL THAT MORNING SGT DISBENNETT SAYS THE SIXTHGRADER DIDN'T ASK FOR ONE PEOPLE INVOLVED IN THE CASE ARE WONDERING WHETHER A THREEYEAROLD COULD HAVE A MOTIVE FOR MURDER EVEN AN UNCONSCIOUS ONE AND WHETHER SHE COULD REALLY REMEMBER SUCH AN ACT THEY ARE WONDERING WHY A FOSTER PARENT WOULD TAKE A CASE LIKE THIS TO THE POLICE AND WHY A LEGAL SYSTEM SEEKING A COMPASSIONATE RESPONSE COULD END UP READING A LITTLE GIRL HER RIGHTS AND BOUNCING HER FROM THE STATION HOUSE TO A DETENTION CENTER TO A COURT HEARING AT THE TIME THE KID WAS CHARGED WE JUST WANTED A VEHICLE TO GET HER INTO THE SYSTEM SO SHE COULD GET HELP SAYS STATE PROSECUTOR STEVE MARTIN THIS WAS SOMETHING THE SYSTEM WAS NOT PREPARED TO DEAL WITH THERE SEEMED TO BE NO OTHER WAY WHEN IT WAS A FRIDAY AND THE COURTS HAD CLOSED AND THIS CHILD JUST CONFESSED TO MURDER WE'RE NOT TRYING TO LOCK HER UP MR MARTIN SAYS BUT IF SHE'S BEEN CARRYING THIS AROUND EIGHT OR NINE YEARS WE NEED TO MAKE SURE SHE GETS HELP IT'S RIDICULOUS SAYS TERRY WEBER THE GIRL'S COURTAPPOINTED ATTORNEY THIS SHOULD BE OVER BY NOW THE CASE IS IN LIMBO AT THE MOMENT A HEARING HAS BEEN POSTPONED UNTIL MARCH 10 SO THAT JM CAN UNDERGO COURTORDERED PSYCHIATRIC EVALUATION TODAY THE DEFENSE WILL MOVE TO DISMISS THE CHARGE THIS IS A SIGNIFICANT TRAUMA TO HER SAYS MR WEBER WHO FIRST MET HIS UNSMILING HESITANT CLIENT ON MONDAY AS SHE DODGED TELEVISION CREWS IT DOESN'T MATTER WHETHER OR NOT SHE DID IT I DON'T THINK WE'LL EVER KNOW IT SHOULD HAVE ENDED ON MONDAY THE CASE ACTUALLY REVOLVES AROUND TWO DEATHS IN THE SAME DYSFUNCTIONAL FAMILY AND HOW THEY MAY BE LINKED IN THE CLOUDED MEMORY OF A GIRL SEXUALLY MOLESTED AND IN AND OUT OF FOSTER CARE AND THERAPY FOR MOST OF HER LIFE BORN IN 1981 JM NEVER KNEW HER BIOLOGICAL FATHER WHO STILL RESIDES IN CINCINNATI WHEN SHE WAS AN INFANT HER MOTHER DID STINTS AT THE OHIO REFORMATORY FOR WOMEN AT MARYSVILLE ON DRUG CONVICTIONS WHILE HER MOTHER WAS AWAY SHE LIVED AT 1725 ELM ST WITH HER 16YEAROLD AUNT HER MOTHER'S SISTER AND HER GRANDMOTHER WHO WAS IN HER LATE 30S NEIGHBORS RECALL A BOISTEROUS HOUSEHOLD WITH BOYFRIENDS AND OTHER VISITORS FREQUENTLY STOPPING BY THE APARTMENT NOW EMPTY AND LOCKED UP GUTTED SEVERAL TIMES BY ARSONISTS TWO SISTERS AT HUDSON BROS CLEANERS ACROSS THE STREET DESCRIBE THE FAMILY AS ROUGH AND LOUD ALWAYS DRINKING AND ARGUING ON JULY 13 1982 NOT LONG AFTER JM'S MOTHER RETURNED FROM A PRISON STAY THE FIGHTING TURNED DEADLY REPORTEDLY ANGRY ABOUT HER DAUGHTER'S TREATMENT WHILE SHE WAS LOCKED UP JM'S 24YEAROLD MOTHER GRABBED AN 8INCH BUTCHER KNIFE AND GOT INTO A SCUFFLE WITH THE GIRL'S AUNT THE AUNT GOT HOLD OF THE KNIFE AND STABBED THE MOTHER IN THE NECK IT ISN'T KNOWN WHETHER JM WITNESSED HER MOTHER'S KILLING THE AUNT WENT TO THE SAME OHIO REFORMATORY FOR INVOLUNTARY MANSLAUGHTER IN MARCH 1983 AND COUNTY SOCIAL SERVICES OFFICIALS THROUGH A COURT ORDER SENT JM TO LIVE WITH HER GRANDMOTHER WHO HAD MOVED SAME DILAPIDATED NEIGHBORHOOD DIFFERENT APARTMENT DIFFERENT MEN AROUND MEANWHILE HER AUNT GAVE BIRTH IN PRISON TO A SON LAMAR LAMAR WENT TO LIVE WITH JM HER GRANDMOTHER THE GRANDMOTHER'S BOYFRIEND AND JM'S 13YEAROLD UNCLE HER MOTHER'S BROTHER ONE JULY DAY IN 1984 THE UNCLE LEFT THREEYEAROLD JM AND HER BARELY 10MONTHOLD COUSIN LAMAR ALONE IN THE KITCHEN AND STEPPED OUTSIDE THEIR GRANDMOTHER SLEPT IN THE NEXT ROOM ON THE KITCHEN FLOOR SAT A PLASTIC DRYWALLCOMPOUND BUCKET FILLED WITH A SOLUTION OF BLEACH AND WATER FOR MOPPING WHEN THE YOUNG UNCLE RETURNED HE FOUND THE BOY STRETCHED OVER THE PAIL WITH HIS HEAD SUBMERGED IN THE PUNGENT LIQUID THE BOY HAD DROWNED IN A 14INCH BUCKET EXACTLY HALF HIS HEIGHT POLICE RULED THE DEATH ACCIDENTAL UNTIL THIS FRIDAY WHEN JM CAME FORWARD IN 1986 JM WAS AGAIN REMOVED FROM HER HOME WHEN SOCIAL WORKERS FOUND EVIDENCE OF SEXUAL ABUSE BY THE GRANDMOTHER'S BOYFRIEND SHE BOUNCED FROM ONE FOSTER HOME TO THE NEXT UNTIL 1990 WHEN SHE CAME TO LIVE WITH HER PRESENT GUARDIAN THIS FOSTER MOTHER HAS SAID JM CONFESSED PRIVATELY TO HER DURING A CONVERSATION THEY WERE HAVING ABOUT TRUST SOMETHING THAT IS DIFFICULT FOR JM SHORTLY AFTER HER REVELATION WITH THE GUIDANCE OF THEIR ASSIGNED SOCIAL WORKER ALL THREE SOUGHT POLICE ASSISTANCE AND THE LEGAL WHIRLWIND BEGAN DESPITE THE LENGTH OF TIME SINCE THE DROWNING POLICE SAY THE PRESENTDAY MENTAL EVALUATION MUST OCCUR IS SHE OF SOUND MIND IS SHE SUICIDAL HOMICIDAL IS SHE A WELLDEVELOPED CHILD OR DOES SHE HAVE A HIDDEN AGENDA SHE NEEDS TO ADDRESS SAYS SGT DISBENNETT OF THE CINCINNATI POLICE WE JUST DON'T KNOW BUT THE CHILD HAS ALREADY BEEN IN STATEPROVIDED THERAPY FOR SEVERAL YEARS SOMETHING PROSECUTORS SAY THEY DIDN'T KNOW AT THE TIME OF ARREST EVEN THOUGH SHE WAS ACCOMPANIED BY A SOCIAL WORKER DURING HER INITIAL CONFESSION STILL THEY HAVEN'T DISMISSED THE CHARGES THIS IS WHAT THE COURT ORDERED MR MARTIN SAYS OTHERS WONDER WHAT A PSYCHIATRIC EVALUATION CAN BE EXPECTED TO ACCOMPLISH THEY SHOULD LOCK THESE PROSECUTORS OUT BECAUSE THEY HAVE NO BUSINESS GETTING INVOLVED WITH THIS SAYS HOWARD A DAVIDSON DIRECTOR OF THE AMERICAN BAR ASSOCIATION CENTER ON CHILDREN AND THE LAW HOW CAN SOMEONE AT AGE 12 BE CERTAIN OF WHAT SHE DID AT AGE THREE IT'S A WASTE OF TAXPAYERS' MONEY STEPHEN CECI A PROFESSOR OF DEVELOPMENTAL PSYCHOLOGY AT CORNELL UNIVERSITY SAYS SHE MAY HAVE HORRIBLE SHARDS OF MEMORY A CHLORINE BUCKET AN INFANT SLUMPED OVER OR AN UNCLE RUNNING AND SCREAMING BUT REVENGE IS AN ADULT MOTIVE HE SAYS ALLUDING TO THE POSSIBILITY THAT JM MIGHT HAVE LASHED OUT AT THE SON OF HER MOTHER'S KILLER NEITHER JM'S FOSTER MOTHER NOR HER SOCIAL WORKER WOULD CONSENT TO BE INTERVIEWED TO EXPLAIN WHY THEY TOOK THE GIRL TO THE POLICE IN THE FIRST PLACE BUT JM'S LAWYER MR WEBER HAS SPOKEN TO BOTH OF THEM AND HE EXPLAINS FROM A SOCIAL WORK STANDPOINT IF SOMEBODY MAKES SOMETHING LIKE A MURDER KNOWN TO YOU THEN YOU ARE RISKING YOUR JOB IF YOU DON'T REPORT IT FROM THE FOSTER MOTHER'S STANDPOINT IF YOU HAVE A CHILD THAT ISN'T YOURS MAKING STATEMENTS LIKE THAT THEN YOU FEEL THE NEED TO TELL THE SOCIAL WORKER BECAUSE YOU MIGHT NOT KNOW THE CHILD'S HISTORY OR WHAT PSYCHOLOGICAL STUDIES HAVE BEEN DONE BOTH WERE ACTING ON THE FEAR OF SOMEBODY CONFESSING SOMETHING AS SERIOUS AS MURDER BOTH WERE TRYING TO GET SOME VALIDITY NEITHER THOUGHT IT WOULD BE HANDLED THIS WAY MR WEBER ADDS THAT JM FEELS SECURE AND PROTECTED ABOUT EVENTS SO FAR BUT HE WORRIES ABOUT WHAT MAY HAPPEN IF THE CASE DRAGS ON ALREADY THE TELEVISION TABLOIDS AND TALK SHOWS ARE CALLING HE FIGURES IT IS ONLY A MATTER OF TIME BEFORE JM'S IDENTITY IS REVEALED SHE MAY WELL PROVE INVINCIBLE AND GROW UP TO BE A SENSIBLE WELLADJUSTED YOUNG LADY PROF CECI SAYS BUT RIGHT NOW WITH THESE COURT PROCEEDINGS THE ODDS ARE AGAINST HER 9403030020 940303 TECHNOLOGY FISHER SCIENTIFIC INTERNATIONAL HAMPTON NH FISHER SCIENTIFIC INTERNATIONAL INC SAID IT SIGNED A LETTER OF INTENT WITH AN AFFILIATE OF BAXTER INTERNATIONAL INC TO BUY BAXTER'S CANLAB DIVISION THE TORONTO DIVISION DISTRIBUTES OVER 35000 LABORATORY PRODUCTS TO CLINICAL AND INDUSTRIAL LABORATORIES IN CANADA FISHER SAID FINANCIAL TERMS FOR THE CASH TRANSACTION WEREN'T DISCLOSED A SPOKESMAN FOR FISHER A MAKER OF SCIENTIFIC INSTRUMENTS SAID THE TRANSACTION SUBJECT TO REGULATORY APPROVAL AND A FINAL AGREEMENT IS EXPECTED TO BE COMPLETED WITHIN TWO MONTHS BAXTER IS A DEERFIELD ILL HEALTHCARE PRODUCTS AND SERVICES CONCERN 9403030019 940303 INTERNATIONAL GENERALE DES EAUX PHONE SYSTEM PARIS FRANCE'S CIE GENERALE DES EAUX WILL OPERATE TELEPHONE SYSTEMS IN TWO REGIONS OF HUNGARY THE COMPANY ANNOUNCED GENERALE DES EAUX SAID IT PLANS TO INVEST 700 MILLION FRANCS 1209 MILLION IN THE TELEPHONE SYSTEMS OF SZEGED AND SZENTES THE REGIONS NOW HAVE SOME 64000 TELEPHONE USERS OUT OF A TOTAL POPULATION OF 440000 HUNGARY CURRENTLY IS CONTRACTING OUT OPERATION OF 25 REGIONAL TELEPHONE SYSTEMS FOLLOWING PRIVATIZATION OF MATAV THE FORMER HUNGARIAN STATE TELECOMMUNICATIONS COMPANY 9403030018 940303 BUSINESS BRIEF APPLE COMPUTER INC DISCOUNTS UP TO 14 GIVEN TO POWERBOOK LINE OF PCS IN THE LATEST ROUND OF PERSONAL COMPUTER DISCOUNTING APPLE COMPUTER INC ANNOUNCED DISCOUNTS OF 9 TO 14 ON ITS POPULAR POWERBOOK LINE OF PORTABLE COMPUTERS APPLE BASED IN CUPERTINO CALIF SAID THE DISCOUNTS APPLY TO THE ALLINONE POWERBOOK AND TWO MODELS OF THE POWERBOOK DUO THE POWERBOOK 180 4/120 FOR EXAMPLE IS NOW 2219 DOWN 11 FROM ITS PREVIOUS PRICE OF 2499 THE POWERBOOK DUO 270C 12/240 WITH EXPRESS MODEM NOW SELLS FOR 3299 DOWN 9 FROM 3619 APPLE'S LATEST BID TO BOOST ITS STRONG MARKET SHARE THROUGH LEAN PRICES COMES ON THE HEELS OF A STUDY BY THE RESEARCH FIRM DATAQUEST WHICH RATED THE POWERBOOK DUO AS THE BEST SELLING SOCALLED SUBNOTEBOOK OR SMALL PORTABLE COMPUTER IN BOTH THE US AND EUROPE 9403030017 940303 WEDNESDAY'S MARKETS BOND PRICES STOCKS RALLY FROM LOSSES INDUSTRIALS PLUMMET 50 RECOVER TO POST GAIN OF 2251 POINTS BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE STAGED A STUNNING COMEBACK AFTER PLUNGING MORE THAN 50 POINTS AMID PLUMMETING BOND PRICES AT HOME AND ABROAD THE US BOND MARKET ALSO RECOVERED WITH PRICES RISING MODESTLY THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 2251 POINTS TO 383174 STANDARD & POOR'S 500STOCK INDEX EDGED UP 037 TO 46481 BUT THE NASDAQ COMPOSITE INDEX FELL 517 TO 78347 INVESTORS HAD BARELY WIPED THE SLEEP FROM THEIR EYES YESTERDAY MORNING WHEN THE STOCK AND BOND MARKETS APPEARED TO BE HEADED FOR ANOTHER ROUT THE DOW JONES INDUSTRIALS PLUMMETED 14 IN THE FIRST 20 MINUTES AND BOND PRICES TUMBLED NEARLY A POINT DRIVING LONGTERM INTEREST RATES UP AS HIGH AS 685 YOU WALK IN AND YOU'RE UP AGAINST THE WALL SAID JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO BUT THEN AS EVERYONE SIFTED THROUGH THINGS THE MARKET FOUND SOME SUPPORT THE TURMOIL IN THE US HAD ITS ROOTS OVERSEAS A SELLOFF BEGAN IN ASIA SWEPT INTO EUROPE AND THEN LANDED ON US SHORES ADDING TO THE US BOND MARKET'S WOES EARLY IN THE SESSION WERE JANUARY DATA SHOWING STRONG PERSONAL SPENDING AND GAINS IN WAGES AND SALARIES BUT THE SHARP DECLINES AWAKENED ENOUGH BUYERS TO STABILIZE THE MARKETS AND PRICES RECOVERED SHARPLY MR BATTIPAGLIA PREDICTED THE INDUSTRIAL AVERAGE WILL RALLY FROM HERE RECOVERING HALF OF ITS LOSSES FROM ITS HIGH OF 397836 ON A SHORTTERM BASIS WE CAN GET A RALLY BASED ON HOW WELL THE MARKET WITHSTOOD THESE PRESSURES HE SAID HOWEVER MANY BOND INVESTORS REMAIN WARY I DON'T SEE A LOT OF INSTITUTIONS LIKE MYSELF BUYING RIGHT NOW SAID WAYNE F WONG SENIOR FIXEDINCOME STRATEGIST AT HSBC ASSET MANAGEMENT WHICH HAS 2 BILLION IN FIXEDINCOME INVESTMENTS THIS IS A VERY VOLATILE MARKET AND IT'S VERY DIFFICULT FOR ME TO SAY THIS IS THE BOTTOM OVERSEAS JAPANESE MARKETS WERE BATTERED BY FALLOUT FROM TUESDAY'S US TREASURY MARKET SLUMP AND USJAPAN TRADE TENSIONS JAPANESE GOVERNMENT BONDS PLUNGED TO THEIR LOWEST LEVELS IN SIX MONTHS PUSHING STOCKS DOWN 23 STOCKS IN HONG KONG AND BANGKOK FELL 27 IN EUROPE STOCK AND BOND MARKETS RODE A ROLLERCOASTER EARLY IN THE DAY FRENCH STOCKS PLUNGED AS MUCH AS 48 GERMAN SHARES 36 AND BRITISH STOCKS 24 PRICES RECOVERED A BIT AS THE US MARKET REBOUNDED WITH GERMANY ENDING DOWN 23 FRANCE 18 AND BRITAIN 07 ALL OF EUROPE'S OTHER STOCK MARKETS FELL MOST BETWEEN 16 AND 28 THE MARKET WAS LIKE A YOYO NOBODY KNEW WHERE IT WOULD SETTLE SAID HANS VON HAZA HEAD OF INSTITUTIONAL STOCK ADVISING AT DRESDNER BANK AG IN FRANKFURT ALSO WEIGHING ON EUROPEAN MARKETS WAS NEWS THAT GERMANY'S MONEY SUPPLY GROWTH SOARED IN JANUARY INVESTORS FEAR THAT MEANS THE PROCESS OF CUTTING INTEREST RATES IN CONTINENTAL EUROPE WILL AGAIN BE SLOWED DOWN SAID GILLES BAZYSIRE A FIRST VICE PRESIDENT AT BROKERS DELAHAYERIPAULT SA IN PARIS THE RECENT SELLOFF IN GLOBAL BOND MARKETS IS PARTLY BECAUSE OF A SUPPLYDEMAND IMBALANCE SAID ROBERT HARDING A MANAGING DIRECTOR AT UBS LTD IN LONDON MAJOR INDUSTRIAL NATIONS ARE CONTINUING TO RAISE MONEY TO FINANCE THEIR DEFICITS AT A TIME WHEN FEWER BUYERS ARE AROUND HE EXPLAINED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 105 TO 11520 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3611 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1404 ISSUES FELL AND 788 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 677 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17040 MARKS AND 10410 YEN COMPARED WITH 17095 MARKS AND 10460 YEN TUESDAY 9403030016 940303 WHO'S NEWS TEKELEC TEKELEC CALABASAS CALIF GILLES GODIN WAS NAMED ACTING CHIEF FINANCIAL OFFICER OF THIS MAKER OF TEST EQUIPMENT FOR DIGITAL TELECOMMUNICATIONS NETWORKS MR GODIN 34 YEARS OLD SUCCEEDS PHILIP J ALFORD AND WILL REMAIN VICE PRESIDENT FOR FINANCE MR ALFORD 40 HAS BEEN PRESIDENT OF TEKELEC SINCE JAN 15 THE COMPANY ALSO NAMED PHILIP BLACK TO ITS BOARD INCREASING THE BOARD'S SIZE TO EIGHT MR BLACK 39 IS CHIEF EXECUTIVE OFFICER OF AVALON TECHNOLOGIES A CLOSELY HELD CONSULTING FIRM IN CALABASAS 9403030014 940303 WTC INDUSTRIES VIETNAM PACT MINNEAPOLIS WTC INDUSTRIES INC SIGNED AN AGREEMENT WITH ASIA CONSULTING & TRADING INC TO SELL ITS WATER PURIFICATION PRODUCTS TO VIETNAMESE HOSPITALS AND SCHOOLS TERMS WERE NOT DISCLOSED WTC SAID IT WILL DISTRIBUTE ITS PENTAPURE WATER PURIFICATION SYSTEM THROUGH ASIA CONSULTING FACILITIES IN VIETNAM THE COMPANY ALSO SAID THE AGREEMENT ESTABLISHES A PRESENCE FOR WTC IN VIETNAM AND MAY EVENTUALLY LEAD TO MANUFACTURING WATER PURIFICATION PRODUCTS THERE 9403030013 940303 HUBBELL RESPONDING TO ARTICLE DENIES OVERBILLING CLIENTS AT FORMER LAW FIRM BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL DENIED REPORTS THAT HE OVERBILLED CLIENTS INCLUDING A FEDERAL AGENCY AS A PRIVATE LAWYER IN LITTLE ROCK ARK RESPONDING TO A PUBLISHED REPORT THAT HIS FORMER PARTNERS IN THE ROSE LAW FIRM WERE INVESTIGATING HIS BILLING PRACTICES MR HUBBELL SAID IN A STATEMENT I AM NOT AWARE OF ANY INVESTIGATION' AND I HAVE NEVER OVERBILLED A CLIENT MR HUBBELL SAID THE LAW FIRM DID ASK LAST WEEK ABOUT BILLINGS ON CASES I WORKED ON HE SAID ONE OF THESE CASES INVOLVED THE RESOLUTION TRUST CORP THE FEDERAL SAVINGSANDLOAN BAILOUT AGENCY I RESPONDED PROMPTLY MR HUBBELL SAID I DID NOT OVERBILL THE RTC OR ANY OTHER CLIENTS HE ADDED THAT IT ISN'T UNUSUAL FOR A FIRM TO QUESTION A FORMER PARTNER ABOUT SUCH BILLING ISSUES ONCE THE PARTNER LEAVES THE FIRM THE FIRM WANTED BACKUP DOCUMENTATION ON CERTAIN EXPENSES PAID FOR BY THE FIRM THE HUBBELL STATEMENT SAID I AM IN THE PROCESS OF HELPING THE FIRM LOCATE SUCH DOCUMENTATION THE REPORT ON MR HUBBELL WAS PUBLISHED WEDNESDAY IN THE WASHINGTON POST THE WHITE HOUSE HAS BEEN BESIEGED WITH QUESTIONS ABOUT ACTIVITIES OF HIGH OFFICIALS PARTICULARLY MR HUBBELL AND HILLARY RODHAM CLINTON WHO FORMERLY WERE PARTNERS AT THE ROSE FIRM THE FIRM ALSO HAS RECEIVED ATTENTION BECAUSE IT REPRESENTED MADISON GUARANTY SAVINGS & LOAN A FAILED THRIFT ONCE OWNED BY JAMES MCDOUGAL A PARTNER WITH THE CLINTONS IN WHITEWATER DEVELOPMENT CO WHITEWATER A REAL ESTATE VENTURE IN NORTHERN ARKANSAS IS NOW THE SUBJECT OF A WIDERANGING CRIMINAL AND CIVIL INVESTIGATION AFTER RECEIVING INQUIRIES FROM THE POST WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY TELEPHONED MR HUBBELL LATE TUESDAY AFTERNOON TO ASK ABOUT THE ALLEGATIONS CONCERNING HIS BILLINGS AND EXPENSES MR HUBBELL VIGOROUSLY DENIED DOING ANYTHING WRONG ACCORDING TO WHITE HOUSE PRESS SECRETARY DEE DEE MYERS MR MCLARTY PASSED WORD OF MR HUBBELL'S DENIALS TO THE PRESIDENT THAT TELEPHONE CONVERSATION SATISFIED MR CLINTON THE WHITE HOUSE SAID THE PRESIDENT HAS FULL CONFIDENCE IN HIM MS MYERS SAID HE STANDS BY WEBB HE BELIEVES HIM HE BELIEVES HIS DENIAL MS MYERS ALSO SAID NEITHER WILLIAM KENNEDY A WHITE HOUSE LAWYER WHO WAS THE MANAGING PARTNER OF THE FIRM NOR MRS CLINTON WAS AWARE OF ANY INQUIRY BY THE FIRM INTO BILLINGS OR OF ANY PROBLEM THAT MR HUBBELL MIGHT HAVE HAD THERE THE WHITE HOUSE SAID IT DIDN'T CALL THE ROSE FIRM THE RTC OR THE FEDERAL DEPOSIT INSURANCE CORP ON THE MATTER MR HUBBELL SUPERVISED WORK THE FIRM DID FOR BOTH AGENCIES MS MYERS SAID THE WHITE HOUSE CONSIDERS THE ISSUE AN INTERNAL MATTER FOR THE LAW FIRM AN ASSISTANT TO RONALD M CLARK THE MANAGING PARTNER OF THE ROSE LAW FIRM SAID THE FIRM WOULD HAVE NO COMMENT ON THE POST ARTICLE ACCORDING TO THE POST SENIOR PARTNERS OF THE ROSE LAW FIRM ARE CONSIDERING WHETHER THEY SHOULD DISCLOSE THE INQUIRY WHICH BEGAN IN THE SUMMER OF 1992 TO THE ARKANSAS BAR ASSOCIATION THE NEWSPAPER QUOTED ONE PERSON WHO ALLEGED THAT MR HUBBELL CHARGED CLIENTS AT HIS OWN PARTNER'S RATE FOR WORK DONE BY SALARIED ASSOCIATES ANOTHER PERSON IS QUOTED AS SAYING THAT MR HUBBELL MIGHT HAVE PAID FOR PERSONAL TRIPS CREDITCARD BILLS AND OTHER ITEMS WITH MONEY FROM AN ACCOUNT USED FOR CLIENT EXPENSES AT THE ROSE FIRM MR HUBBELL DID THE USUAL LITIGATION WORK SAID JOSEPH GIROIR MANAGING PARTNER OF THE FIRM FROM 1975 UNTIL 1987 ANY OVERBILLING ON MR HUBBELL'S PART WOULD SURPRISE ME HE ADDED I HAVE NO KNOWLEDGE OF IT MY FEELING IS THAT WEBB WOULDN'T HAVE DONE THAT ROSE LAW FIRM RATES HE SAID RANGE FROM 75 AN HOUR FOR YOUNG ASSOCIATES TO 250 FOR SENIOR PARTNERS IT IS UNCLEAR WHICH ROSE CLIENTS MIGHT HAVE BEEN OVERBILLED BY MR HUBBELL OR THE ROSE FIRM IN HIS STATEMENT MR HUBBELL SAID THE QUESTIONS ABOUT HIS BILLINGS INCLUDED A CASE IN WHICH HE REPRESENTED THE RTC ROSE REPRESENTED THE RTC ON SEVERAL MATTERS INCLUDING A CASE THAT HAD BEEN INITIATED BY THE FDIC AGAINST MADISON GUARANTY'S ACCOUNTANTS FROST & CO MR HUBBELL WAS THE LEAD ATTORNEY THE AGENCY SOUGHT 10 MILLION IN ACTUAL DAMAGES AND 10 MILLION IN PUNITIVE DAMAGES ROSE SETTLED THE CASE FOR 1 MILLION AND BILLED THE GOVERNMENT 400000 RTC OFFICIALS SAID THEY WEREN'T AWARE THAT THE ROSE LAW FIRM WAS INVESTIGATING ANY OVERBILLING ON THE CASE FDIC OFFICIALS ALSO SAID THEY HAVE HEARD NO SUGGESTIONS THAT MR HUBBELL OR THE ROSE FIRM OVERCHARGED THEIR AGENCY JOHN DIPIPPA AN EXPERT ON LEGAL ETHICS AT THE UNIVERSITY OF ARKANSAS LAW SCHOOL AT LITTLE ROCK SAID THE ROSE FIRM HAS A DUTY TO REPORT ANY SERIOUS VIOLATIONS OF ETHICAL RULES TO THE ARKANSAS BAR ASSOCIATION HE DEFINED SERIOUS VIOLATION AS CASTING DOUBT ON THE LAWYER'S FITNESS TO PRACTICE IT DEPENDS ON THE NATURE OF OVERBILLING THE CIRCUMSTANCES THE AMOUNT THE FREQUENCY HE SAID AT SOME POINT YOU PASS THE LINE FROM MINOR OFFENSE TO SERIOUS OFFENSE WHEN YOU CROSS THAT LINE LAWYERS HAVE AN OBLIGATION TO REPORT IT QUESTIONS ABOUT MR HUBBELL'S INTEGRITY AS A LAWYER LEFT THE WHITE HOUSE RATTLED AMONG WHITE HOUSE INSIDERS MR HUBBELL IS HELD IN THE HIGHEST REGARD RESPECTED FOR HIS HONESTY MR MCLARTY WAS SAID TO BE DEVASTATED TUESDAY BY THE HARSH SPOTLIGHT ON HIS OLD FRIEND MANY OF THE PRESIDENT'S TOP AIDES MET BOTH FORMALLY AND INFORMALLY YESTERDAY TO DISCUSS WHAT TO DO A PROBLEM FOR MR HUBBELL THEY KNEW WOULD BE TROUBLE FOR BILL CLINTON MR HUBBELL A CONFIDANT OF THE PRESIDENT HAS NOT ADVISED HIM ON WHITEWATER IN AN INTERVIEW EARLIER THIS WEEK MR HUBBELL SAID HE HAS HAD NO SUBSTANTIVE DISCUSSIONS WITH ANYONE IN THE WHITE HOUSE ABOUT THE WHITEWATER AFFAIR HE NOTED HOWEVER THAT HIS WRITTEN RECUSAL ON THE WHITEWATER MATTER RELATES ONLY TO THE JUSTICE DEPARTMENT I'M NOT INVOLVED WITH ANYBODY IN JUSTICE ABOUT IT HE SAID BRUCE INGERSOLL CONTRIBUTED TO THIS ARTICLE 9403030012 940303 YOUR MONEY MATTERS MARKET EXPERTS IDENTIFY SEVEN TRAPS THAT COULD BE HAZARDOUS TO A PORTFOLIO BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL MEMO TO INDIVIDUAL INVESTORS BE CAREFUL OUT THERE THE MARKETS ARE LITTERED WITH TRAPS JUST WAITING TO ENSNARE THE UNWARY EVEN BEFORE RISING INTEREST RATES AND INFLATION FEARS SENT BOND PRICES TUMBLING AND FUELED NEW UNCERTAINTY ABOUT STOCKS INVESTMENT PROS WERE BECOMING INCREASINGLY CONCERNED ABOUT THE ENTHUSIASM OF MANY INDIVIDUAL INVESTORS THE NUMBER OF TRAPS IS GROWING SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST FOR MERRILL LYNCH IT'S TIME FOR INVESTORS TO REEXAMINE THEIR THINKING ABOUT SEVERAL OVERLY POPULAR STOCKMARKET INVESTMENT STRATEGIES PROS SAY WHAT ARE THE DANGEROUS TRAPS IN THE MARKET TODAY AND WHY SHOULD INVESTORS AVOID THEM HERE'S WHAT STOCK STRATEGISTS MONEY MANAGERS MUTUALFUND ANALYSTS AND INVESTMENT RESEARCHERS PICK AS THE SEVEN MOSTHAZARDOUS MARKET STRATEGIES STOCKS IN EMERGING MARKETS HAD A FABULOUS PERFORMANCE IN 1993 THANKS TO AN INFUSION OF US MUTUALFUND MONEY AND ECONOMIC GROWTH BUT SO FAR THIS YEAR MANY EMERGINGMARKETS MUTUAL FUNDS WHICH INVEST IN DEVELOPING COUNTRIES ARE FALTERING ONE OF THE LARGEST FIDELITY EMERGING MARKETS FUND IS OFF 7 AFTER SOARING NEARLY 82 IN 1993 MANY EMERGING MARKETS ESPECIALLY IN ASIA ARE OVERBOUGHT SAYS MR CLOUGH NED DAVIS PRESIDENT OF NED DAVIS RESEARCH A NAKOMIS FLA INVESTMENTRESEARCH FIRM IS WORRIED ABOUT THE HUGE INFLOW OF MONEY AND LACK OF LIQUIDITY IN MANY OF THESE MARKETS HOW DO YOU GET OUT OF MALAYSIA BRAZIL AND THE PHILIPPINES IF WE GET INTO A BEAR MARKET HE ASKS EVEN THOUGH PRICES HAVE DROPPED RECENTLY FOLLOWING THE BREAKDOWN OF BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC IT MAY BE YEARS BEFORE TELECOMMUNICATIONS COMPANIES CAN GENERATE THE EARNINGS TO PROVE THEY ARE WORTH THEIR HIGH PRICES MR CLOUGH SAYS WE STILL DON'T KNOW WHAT THE INFORMATION SUPERHIGHWAY WILL LOOK LIKE HE SAYS MANY CASINO AND RIVERBOATGAMBLING STOCKS ARE SELLING AT PRICES THAT ASSUME THERE WILL BE AN ENDLESS SUPPLY OF CUSTOMERS EVEN THOUGH CASINOS AND RIVERBOATS ARE POPPING UP ALL OVER THE COUNTRY SAYS WILLIAM DODGE CHIEF INVESTMENT STRATEGIST FOR DEAN WITTER REYNOLDS IT MIGHT BE BETTER TO GO TO THE CRAP TABLE THAN TO BUY THESE STOCKS HE SAYS TOO MANY INVESTORS ARE PAYING INFLATED PRICES FOR CYCLICAL STOCKS THAT AREN'T LIKELY TO PRODUCE EARNINGS TO JUSTIFY THOSE PRICES ANYTIME SOON SAYS RON BARON PRESIDENT OF BARON CAPITAL A NEW YORK MONEYMANAGEMENT FIRM PEOPLE ARE PAYING A BIG PRICE FOR PEAK CYCLICAL EARNINGS THAT MAY OR MAY NOT MATERIALIZE HE SAYS CYCLICAL STOCKS TEND TO FOLLOW THE UPS AND DOWNS OF THE ECONOMY CLOSELY BRAD PERRY SENIOR PARTNER AT DAVID L BABSON A CAMBRIDGE MASS INVESTMENT FIRM SAYS CHEMICAL PAPER AND METAL STOCKS ARE INFLATED MR PERRY IS CONCERNED THAT MANAGED CARE AND NEW GOVERNMENT REGULATIONS MAY CUT GROWTH RATES FOR DRUG COMPANIES SO SHARPLY THAT THE STOCKS AT CURRENT PRICES STILL AREN'T BARGAINS IT'S A VALUE TRAP HE SAYS THE ENVIRONMENT IN THE MEDICAL SECTOR ISN'T BACK TO NORMAL AND IT MAY END UP AS SUBNORMAL IT'S TOO EARLY TO MAKE A MOVE IN DRUG STOCKS THE VOLATILE JAPANESE STOCK MARKET HAS RISEN SO FAR THIS YEAR BUT IT IS FAR BELOW ITS 1989 PEAK THE JAPAN FUND A MUTUAL FUND THAT INVESTS IN JAPANESE STOCKS IS UP JUST OVER 19 SO FAR THIS YEAR AFTER A FIVEYEAR CUMULATIVE TOTAL RETURN OF MINUS 09 BUT ONE NOTED INTERNATIONAL INVESTOR JOHN TEMPLETON WHO SOLD HIS MUTUALFUND GROUP TO FRANKLIN FUNDS BUT REMAINS ACTIVE AS A PRIVATE INVESTOR IN NASSAU THE BAHAMAS DOESN'T THINK THE TIME IS RIPE HE AGREES THAT THE TIME TO BUY STOCKS IS AT THE POINT OF THE WORST BAD NEWS AND JAPAN HAS REACHED THAT POINT BUT JAPANESE STOCK PRICES HAVEN'T REFLECTED THE DEPTH OF THE BAD NEWS AS THE AVERAGE STOCK STILL SELLS FOR MORE THAN 60 TIMES EARNINGS MR TEMPLETON SAYS CHARLES CAIN PRESIDENT OF CAIN ASSET MANAGEMENT OF NEW YORK SAYS TOO MANY RISKS REMAIN IN JAPAN WITH FUNDAMENTAL UNCERTAINTIES ON THE POLITICAL SCENE PICKING THE STOCKS THAT ARE RISING THE FASTEST IN PRICE ON THE THEORY THAT A BODY IN MOTION TENDS TO STAY IN MOTION WAS A SUCCESSFUL STRATEGY LAST YEAR SAYS MR DAVIS THE FLORIDA INVESTMENT RESEARCHER BUT THESE STOCKS TEND TO FALL AS FAST AS THEY RISE AND WHEN THEY FALL THEY USUALLY DON'T HAVE THE EARNINGS TO SUPPORT THEM HE SAYS LAST YEAR UTILITY STOCKS TOOK A SHARP PLUNGE AND HAVE CONTINUED TO SELL OFF THIS YEAR GOLDMINING STOCKS BOUNCED AROUND EVEN THOUGH THE GROUP HAS MOVED UP MORE GYRATIONS ARE IN STORE FOR MOMENTUM INVESTORS FOR THE REST OF THIS YEAR MR DAVIS SAYS NOW ISN'T THE TIME TO CHASE STOCKS THAT HAVE TRIPLED DURING THE PAST TWO YEARS SAYS MR BARON THE NEW YORK MONEY MANAGER KEN GREGORY EDITOR OF NOLOAD FUND ANALYST AN ORINDA CALIF NEWSLETTER SAYS IT HAS BEEN EASY TO TRASH CONSUMERBRAND STOCKS BASED ON THE SURGE IN POPULARITY OF GENERIC NO NAME PRODUCTS BUT TOO MANY INVESTORS HAVE OVERLOOKED THE FACT THAT CONSUMER BRANDS ARE CASHING IN ON A GROWING DEMAND FOR THEIR PRODUCTS OUTSIDE THE US AS CONSUMERS IN EMERGING NATIONS GET MORE DISPOSABLE INCOME THEY ARE BUYING LARGER AMOUNTS OF US CONSUMER BRANDS HE SAYS WITH ALL THESE TRAPS SHOULD AN INVESTOR AVOID THE STOCK MARKET ALTOGETHER WITH ANY NEW MONEY TO INVEST NOT NECESSARILY SAYS MR PERRY THE CAMBRIDGE MASS INVESTMENT EXECUTIVE THE BIGGEST RISK FOR PEOPLE IN THE LONG RUN IS THAT THEY HAVE TOO LITTLE MONEY IN STOCKS HE ADVISES INVESTORS TO INVEST IN THE STOCK MARKET GRADUALLY THIS YEAR IN STOCKS THAT AREN'T HIGHLY POPULAR 9403030011 940303 SEC'S LEVITT PUSHES MUNI REFORM EFFORT TO STATE TREASURERS WASHINGTON AFTER MONTHS OF PRESSING FOR CHANGES IN THE MUNICIPALBOND BUSINESS SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT FINALLY TOOK HIS MESSAGE TO A GROUP THAT WILL BE GREATLY AFFECTED BY IT STATE TREASURERS ACCORDING TO THE TEXT OF A SPEECH THAT WAS DELIVERED YESTERDAY IN A CLOSEDDOOR MEETING HERE WITH THE NATIONAL ASSOCIATION OF STATE TREASURERS MR LEVITT CONCEDED THAT THE SEC AND OTHER FEDERAL REGULATORS HAVE LIMITED AUTHORITY OVER THE PUBLIC DEBT MARKETS BUT HE URGED THE TREASURERS MANY OF WHOM CONTROL THEIR STATES' ISSUANCE OF BONDS TO TAKE VOLUNTARY REFORM MEASURES INCLUDING MORE FREQUENT USE OF COMPETITION RATHER THAN NEGOTIATION IN SELECTING BOND UNDERWRITERS TREASURERS COULD ALSO CONSIDER ADVOCATING UNIFORM STATE LEGISLATION THAT WOULD REQUIRE A CHINESE WALL BETWEEN THE POLITICAL PROCESS AND THE UNDERWRITING OF BONDS MR LEVITT SAID I URGE YOU TO START THE DIALOGUE ON THESE ISSUES WITHIN YOUR STATE BECAUSE THE IMPLICATION THAT TAX DOLLARS ARE BEING DIRECTED ON THE BASIS OF POLITICAL CONTRIBUTIONS HURTS ELECTED AND APPOINTED OFFICIALS MORE THAN ANYONE ELSE HE SAID TO DATE MOST OF MR LEVITT'S WORK ON MUNICIPALBOND REFORM HAS BEEN DEDICATED TO ENCOURAGING UNDERWRITERS ON WALL STREET TO STOP MAKING CAMPAIGN CONTRIBUTIONS TO POLITICIANS WHO CAN AWARD BOND BUSINESS THAT INITIATIVE TO END A PRACTICE CALLED PAY TO PLAY HAS SET MR LEVITT AT ODDS WITH MANY STATE AND LOCAL ELECTED OFFICIALS INCLUDING TREASURERS EARLY IN HIS SPEECH MR LEVITT ACKNOWLEDGED THAT HE HAD RANKLED THE TREASURERS I'D LIKE TO REMOVE THE MISPERCEPTION THAT I BELIEVE YOUR OFFICE IS ROUTINELY BOUGHT AND SOLD MR LEVITT SAID I DON'T AND I HAVE NEVER SAID SO 9403030010 940303 CADILLAC FAIRVIEW INC REDUCES PAYMENTS TO MORTGAGE HOLDERS TORONTO CADILLAC FAIRVIEW INC SAID IT REDUCED ITS INTEREST PAYMENTS TO HOLDERS OF MORTGAGES ON THE COMPANY'S MOST TROUBLED OFFICE BUILDINGS AND SHOPPING MALLS IN CANADA BUT THE REALESTATE CONCERN WHICH IS CLOSELY HELD BY A GROUP OF MAINLY US PENSION FUNDS SAID IT IS MAKING PROGRESS IN NEGOTIATIONS WITH ITS BANKS AND SHAREHOLDERS TO SOLVE ITS CASH PROBLEMS CADILLAC SAID LAST WEEK THAT IT HAD BEGUN NEGOTIATING TO RESTRUCTURE SOME ONE BILLION CANADIAN DOLLARS US740 MILLION OF BANK DEBT BUT CADILLAC ALSO HAS AN ADDITIONAL C22 BILLION OF DEBT WHICH IS DIRECTLY SECURED BY ITS VARIOUS COMMERCIAL PROPERTIES SOME OF THESE HOLDINGS NOW AREN'T GENERATING ENOUGH CASH FLOW TO COVER THE INTEREST PAYMENTS DUE ON THE MORTGAGES THE COMPANY SAID A CADILLAC SPOKESMAN SAID SIX OF THE COMPANY'S 62 OFFICE BUILDINGS AND MALLS IN CANADA ARE UNDER WATER AND ANOTHER 10 OR 12 CANADIAN PROPERTIES ARE BARELY MEETING THEIR INTEREST PAYMENTS AS A RESULT THE COMPANY HAS BEGUN SERVICING THE DEBT ON SPECIFIC PROPERTIES ONLY TO THE EXTENT THAT THERE IS CASH FLOW AVAILABLE FROM THOSE PROPERTIES LANDLORDS KNOW THEY'RE NOT GOING TO RECEIVE THEIR FULL INTEREST THE SPOKESMAN SAID CADILLAC SAID IT IS MAKING FULL MORTGAGE PAYMENTS ON ITS 12 COMMERCIAL PROPERTIES IN THE US THE CADILLAC SPOKESMAN SAID THAT OBTAINING FINANCING TO MAINTAIN THE COMPANY'S OPERATIONS INCLUDING PAYING THE MORTGAGES ON ITS PROPERTIES IS THE FIRST STEP OF THE PLANNED RESTRUCTURING AS PART OF THE RESTRUCTURING PACKAGE THE TERMS OF WHICH HAVEN'T BEEN DISCLOSED CADILLAC SAID IT IS CONSIDERING RAISING NEW EQUITY SELLING NONSTRATEGIC ASSETS AND OFFERING SHARES TO THE PUBLIC 9403030009 940303 WORLD MARKETS GLOBAL BOURSES TUMBLE AS NEW GERMAN DATA ADD TO PILE OF WORRIES ABOUT INFLATION RATES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SNAPPED A FOURSESSION WINNING STREAK SKIDDING 23 WEDNESDAY BECAUSE OF A CRUMBLING JAPANESE BOND MARKET AND WEAKNESS THROUGHOUT WORLD STOCK MARKETS WHICH WERE STILL BEING WHIPPED BY BOND MARKETS' REACTION TO FEARS OF RISING INFLATION AND INTEREST RATES THESE PROSPECTS SEEMED EVEN MORE LIKELY WHEN A GERMAN MONEYSUPPLY REPORT ASTONISHED EUROPEAN BOURSES LONDON SHARES ENDED LOWER AFTER RECOVERING MOST OF THE DAY'S DEEP LOSSES WHEN WALL STREET OPENED STRONGER FRANKFURT PRICES LOST 23 ALSO REBOUNDING FROM PLUNGES BUT STILL SETTING A NEW CLOSING LOW FOR THIS YEAR PARIS EQUITIES SLID 18 AFTER CLIMBING UP FROM A 48 INTRADAY HOLE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11520 DOWN 105 OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10096 UP 093 OR 09 WITH DRESSER INDUSTRIES OF THE US POSTING A 22 GAIN IN ITS LOCAL CURRENCY ENTERTAINMENT STOCKS TRAILED AT 14519 DOWN 1823 OR 11 WITH PARAMOUNT COMMUNICATIONS OF THE US SLIDING 37 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 21942 POINTS TUESDAY PLUMMETED 47185 TO 1974477 NEAR THE SESSION'S LOW OF 1972427 IN TRADING THURSDAY THE NIKKEI FELL 6470 POINTS TO CLOSE THE MORNING SESSION AT 1968007 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES DOWN FROM 5184 MILLION SHARES A DAY EARLIER LOSERS CLOBBERED GAINERS 823234 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH CLIMBED 1377 POINTS TUESDAY LOST 2954 OR 18 TO 161594 THE NIKKEI'S RETREAT FOLLOWING GAINS FROM POSITIVE JAPANESE ECONOMIC DATA EARLIER THIS WEEK CAME AS CORPORATE INVESTORS UNLOADED EQUITIES TO LOCK IN PROFITS AHEAD OF MARCH 31 END OF THE FISCAL YEAR INVESTORS GOT NERVOUS AS JAPANESE BOND PRICES SLUMPED WEDNESDAY MORNING BUT LATE IN THE DAY BOND YIELDS WHICH MOVE OPPOSITE PRICES CAME OFF THEIR HIGHS ATTRIBUTED TO A GROWING BELIEF THAT THE JAPANESE ECONOMY HAS BOTTOMED THE NIKKEI'S AFTERNOON PLUNGE WAS ATTRIBUTED TO INDEXLINKED ARBITRAGE SELLING OF EQUITIES AS FUTURES PRICES FELL FOLLOWING NEWS REPORTS OF US ACTION TO ALLOW QUICK IMPOSITION OF TRADE SANCTIONS ON JAPAN IF NEEDED IN THE TWO COUNTRIES' TRADE DISPUTE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 225 POINTS TO 32481 THE FT 30STOCK INDEX SLIPPED 42 POINTS TO 25318 VOLUME WAS 7633 MILLION SHARES COMPARED WITH 7092 MILLION SHARES A DAY EARLIER THE MARKET REMAINED IN NEGATIVE TERRITORY ALL DAY AND THE 100STOCK INDEX AT ITS WORST HAD LOST 749 POINTS OR 23 PRICES FELL IN RESPONSE TO WEAKNESS IN THE GILT OR GOVERNMENT BOND AND FUTURES MARKETS BONDS AND STOCKINDEX FUTURES WERE PUSHED LOWER BY US ECONOMIC DATA TUESDAY WHICH FUELED FEARS OF HIGHER US INTEREST RATES AND THE NEWS FROM GERMANY YESTERDAY THE GERMAN BUNDESBANK SAID ITS M3 MONEYSUPPLY MEASURE GREW AN ASTOUNDING 206 IN JANUARY ON AN ANNUALIZED BASIS DEALING YET ANOTHER BLOW TO INVESTORS WHO HAD BET ON FALLING INTEREST RATES TO PUSH STOCK PRICES UP BUT A PICKUP ON WALL STREET AFTER STEEP DROPS AT THE OPENING WAS INTERPRETED IN LONDON AS A POSITIVE SIGNAL ALLOWING STOCKS TO CLAW BACK MOST OF THEIR LOSSES SEVERAL BROKERAGE HOUSES SAID THEY BOUGHT BARGAINS IN FRANKFURT THE DAX 30STOCK INDEX PLUNGED 4672 POINTS TO 202033 AFTER BOUNCING BACK FROM ABOUT 20 POINTS LOWER SHARES PLUNGED EARLY WHEN THE BUNDESBANK ANNOUNCED THE MONEYSUPPLY DATA CITING CONTINUING SPECIAL FACTORS AND OTHER DISTORTIONS BUT THE GROWTH FAR EXCEEDED EXPECTATIONS THIS ADDED TO THE MARKET'S JITTERS FROM A SERIES OF ILL TIDINGS INCLUDING WEAK US TREASURYS AND GERMAN FUTURES THOUGH ALL 30 DAX STOCKS DROPPED THE GERMAN CABINET'S DECISION TO SPEND 521 BILLION TO BUILD A MAGNETICTRAIN SYSTEM BETWEEN HAMBURG AND BERLIN CUSHIONED THE BLOW FOR SOME SHARES THAT COULD BENEFIT FROM THE PROJECT IN PARIS STOCKS PARTLY RECOVERED FROM A HEAVY THRASHING THAT WAS SPARKED BY THE ALARMING GERMAN MONEYSUPPLY DATA BUT STILL ENDED SHARPLY LOWER IN EXTREMELY NERVOUS AND VOLATILE TRADING THE MARKET OPENED LOWER DEPRESSED BY A TINY GERMAN RATE CUT THE PREVIOUS DAY AND BY MOUNTING ANXIETY ABOUT HIGHER US LENDING RATES THEN PANIC SELLING ERUPTED FOLLOWING THE BUNDESBANK REPORT BUT PARIS INVESTORS CALMED ALONG WITH OTHERS IN EUROPE BY LATE AFTERNOON HELPED BY THE STABILIZING OF LOSSES ON WALL STREET IN AMSTERDAM SHARE PRICES SLUMPED TO END NEAR THE DAY'S LOWS DRAGGED DOWN BY SAGGING BOND PRICES IN MILAN THE MARKET INCLUDING ELECTRONIC TRADES SANK 16 ALSO HURT BY INTERESTRATE BLUES SPARKED BY THE GERMAN REPORT DAMPING HOPES FOR ITALIAN RATE CUTS IN MADRID STOCKS LOST 23 AFTER CLIMBING UP FROM LOWS ALONG WITH A BOND MARKET RECOVERY IN STOCKHOLM THE BOURSE DIVED 2 AS TURMOIL IN BOND MARKETS DEPRESSED EQUITY PRICES IN ZURICH PRICES SLID 28 IN LINE WITH THE EUROPEAN TREND ON THE GERMAN MONEYSUPPLY NEWS IN BRUSSELS STOCKS PLUMMETED 24 ON SIGHTINGS OF RISING LONGTERM INTEREST RATES IN SYDNEY DESPITE GOOD CORPORATE PROFIT REPORTS SHARES TUMBLED 13 FOLLOWING THE WORLD TREND OF STOCK MARKETS WEAKENING AS BOND PRICES DROP BECAUSE OF CONCERN ABOUT A POSSIBLE RESURGENCE IN INFLATION IN HONG KONG THE MARKET SKIDDED 27 SPURRED BY CONTINUED SELLING OF BANKING ISSUES AND THE FINANCIAL SECTOR DIVED 5 THE PERSISTENT BEARISHNESS WAS LINKED TO OVERSEAS SELLING OF BLUE CHIPS IN THE WAKE OF GLOBAL MARKETS' DECLINES PROMPTED BY RATE WORRIES IN SINGAPORE STOCKS RETREATED 12 IN THIN VOLUME AS CAUTION IN WEAK BOURSES ABROAD LED INSTITUTIONAL INVESTORS TO LOCK IN PROFITS IN KUALA LUMPUR PRICES WERE DRUBBED DOWN 24 WITH LOSSES ACROSS THE BOARD REFLECTING DROPS IN REGIONAL MARKETS RETAIL INVESTORS RUSHED TO LOCK IN GAINS AND EACH TIME THAT PRICES STRUGGLED UP IN SPORADIC BARGAIN HUNTING THEY WERE HAMMERED BACK BY HEAVY PROFITTAKING IN MANILA SHARES ENDED 2 LOWER HURT BY THE DECLINES IN THE TELEPHONE SECTOR IN TAIPEI SHARES FELL ON DISCOURAGING ECONOMIC NEWS IN TAIWAN CONSTRUCTION SHARES SLUMPED 14 IN SEOUL STOCKS DROPPED 13 IN HEAVY SELLING BY INDIVIDUAL INVESTORS BANK ISSUES WHICH RECENTLY HAD GAINED ON EXPECTATIONS FOR INCREASING CAPITAL TURNED WEAK IN BANGKOK SHARES PLUNGED 27 IN LIGHT TRADING AMID CONTINUED POOR MARKET SENTIMENT FOREIGN INVESTORS SOLD SOME BLUECHIP BANKING STOCKS BUT IN MEXICO CITY STOCKS RALLIED 19 ON NEWS THAT REBELS AND THE MEXICAN GOVERNMENT TENTATIVELY AGREED ON ENDING THE PEASANTS' TWOMONTHOLD REBELLION IN CHIAPAS AND BY A RISE IN THE US DOLLAR AGAINST THE MEXICAN PESO WHICH ATTRACTED FOREIGN BARGAIN HUNTERS 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 9403030008 940303 INTERNATIONAL VICKERS POSTS '93 PROFIT DUE TO REVAMPING ROLLSROYCE'S STRENGTH SPECIAL TO THE WALL STREET JOURNAL LONDON UK MOTOR COMPANY VICKERS PLC TURNED THE CORNER IN 1993 SWINGING TO A 323 MILLION 481 MILLION PRETAX PROFIT FROM A 366 MILLION LOSS IN 1992 VICKERS CREDITING THE STRENGTH OF ITS ROLLSROYCE MOTOR CARS LTD DIVISION SHOWED THE PROFIT DESPITE A 4 DROP IN SALES TO 6896 MILLION FROM 7185 MILLION THE RESULT WAS IN LINE WITH MARKET FORECASTS VICKERS DOUBLED ITS FULLYEAR DIVIDEND TO THREE PENCE A SHARE MARKET FORECASTS ESTIMATE VICKERS'S 1994 PRETAX PROFIT WILL RISE TO 413 MILLION VICKERS'S RECENT RESTRUCTURING IN WHICH ITS DEFENSE OPERATIONS WERE POOLED INTO A SEPARATE DIVISION CREATED A MORE STREAMLINED COMPANY SAID RICHARD LLOYD VICKERS'S CHAIRMAN ROLLSROYCE MOTOR CARS WHICH RETURNED TO PROFIT LAST YEAR AS EARLIER REPORTED IS HEALTHIER AND MORE EFFICIENT THAN ANY TIME IN ITS HISTORY COMPANY OFFICIALS SAID ON THE DEFENSE SIDE THE COMPANY CITED PREVIOUSLY REPORTED ORDERS OF CHALLENGER 2 TANKS FROM OMAN AND THE UK MINISTRY OF DEFENSE THE DIVISION'S ORDER BOOK WILL RISE BY MORE THAN 600 MILLION BECAUSE OF THE ORDERS THE COMPANY SAID 9403030007 940303 ECONOMY SUBCOMMITTEE REJECTS ACTION ON HEALTH PLAN BILL IS SENT TO FULL PANEL IN MOVE UNDERSCORING THE LACK OF CONSENSUS BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN ANOTHER INDICATION OF THE TROUBLE CONGRESS IS HAVING REACHING CONSENSUS ON HEALTHCARE LEGISLATION LAWMAKERS HAVE DECIDED TO BYPASS A DIVIDED SUBCOMMITTEE AND TRY TO HAMMER OUT A COMPROMISE ELSEWHERE UNABLE TO GARNER ENOUGH VOTES TO PASS KEY PROVISIONS OF THE CLINTON ADMINISTRATION'S BILL THE HEALTH AND ENVIRONMENT SUBCOMMITTEE OF THE HOUSE ENERGY AND COMMERCE COMMITTEE DECIDED AGAINST ACTING ON THE LEGISLATION INSTEAD SUBCOMMITTEE CHAIRMAN HENRY WAXMAN D CALIF WILL SEND THE BILL TO THE FULL COMMITTEE FOR CONSIDERATION IN HOPES OF COLLECTING A MAJORITY THERE MR WAXMAN SAID HE AND JOHN DINGELL D MICH CHAIRMAN OF THE FULL ENERGY AND COMMERCE COMMITTEE SUGGESTED IT WOULD BE UNPRODUCTIVE TO COMPROMISE ON CONTROVERSIAL PROVISIONS IN ORDER TO GET A HEALTHCARE BILL OUT OF SUBCOMMITTEE ONLY TO HAVE TO RENEGOTIATE ON THE SAME ISSUES ONCE THE BILL HITS THE FULL COMMITTEE WE FEEL IT WOULD BE BETTER TO NEGOTIATE COMPROMISES ONCE MR WAXMAN SAID MOREOVER HE SAID THE SUBCOMMITTEE DIDN'T WANT TO ACT BEFORE THE CONGRESSIONAL BUDGET OFFICE COMPLETED COST ESTIMATES ON OTHER ALTERNATIVE PROPOSALS INCLUDING BILLS COSPONSORED BY REPS JIM COOPER D TENN AND FRED GRANDY R IOWA AND BY HOUSE REPUBLICAN LEADER ROBERT MICHEL OF ILLINOIS AND OTHER GOP HOUSE MEMBERS WHILE MOVING THE BILL DIRECTLY TO THE FULL COMMITTEE MAY EXPEDITE CONGRESSIONAL DELIBERATIONS LAWMAKERS DON'T SEE AN EASIER TIME FOR THE CLINTON BILL IN THE FULL ENERGY AND COMMERCE COMMITTEE AT THIS POINT MR DINGELL HAS ONLY A 2717 DEMOCRATIC MAJORITY MESSRS WAXMAN AND DINGELL BOTH SUPPORTERS OF THE CLINTON PLAN HAVE VIRTUALLY GIVEN UP HOPE OF WINNING REPUBLICANS VOTES THAT MEANS THE LOSS OF FIVE DEMOCRATS WOULD PUT THE PANEL IN DEADLOCK AND AT LEAST FOUR ALREADY ARE COUNTED AS LOST ON MAJOR ELEMENTS OF THE CLINTON PLAN THESE INCLUDE REP COOPER AND THREE FELLOW SOUTHERNERS REPS RALPH HALL OF TEXAS WJ TAUZIN OF LOUISIANA ROY ROWLAND OF GEORGIA AT THE MOMENT NEITHER THE SUBCOMMITTEE NOR THE FULL PANEL HAS MAJORITIES FOR MR CLINTON'S PROPOSAL THAT EMPLOYERS BE REQUIRED TO PAY AT LEAST 80 OF THE HEALTH INSURANCE PREMIUMS OF THEIR FULLTIME WORKERS NOR DO THEY HAVE MAJORITIES FOR LIMITS MR CLINTON WANTS TO IMPOSE ON HEALTHINSURANCE PREMIUMS BUT THERE ISN'T AGREEMENT ON ANY OTHER HEALTHCARE PROPOSAL EITHER MR COOPER WHOSE PLAN HAS RECEIVED A LOT OF ATTENTION AND INTEREST FROM THE BUSINESS AND MEDICAL COMMUNITIES CLEARLY DOESN'T HAVE ENOUGH VOTES TO WIN THE HOUSE WAYS AND MEANS COMMITTEE'S HEALTH SUBCOMMITTEE THIS WEEK POSTPONED ITS SCHEDULED DRAFTING OF LEGISLATION THREE HOUSE COMMITTEES AND TWO SENATE COMMITTEES HAVE MAJOR JURISDICTION OVER THE HEALTHCARE LEGISLATION NO ONE HAS THE VOTES TODAY TO GET A BILL OUT OF THE COMMITTEE MR COOPER SAID LAST NIGHT PRESIDENT CLINTON MEANWHILE BLAMED FALTERING SUPPORT FOR HIS PLAN ON GREEDY SPECIAL INTERESTS LOOK AT THE MILLIONS AND MILLIONS AND MILLIONS OF DOLLARS THAT HAVE BEEN SPENT BY INTEREST GROUPS TO TRASH THE PLAN MR CLINTON COMPLAINED HE WENT ON TO CALL THE NAYSAYERS PEOPLE THAT DON'T WANT TO ASSUME ANY RESPONSIBILITY FOR THEIR EMPLOYEES PEOPLE THAT DON'T WANT TO ASSUME ANY RESPONSIBILITY FOR PROVIDING BASIC HEALTH CARE PEOPLE THAT THINK THEY CAN GET JUST A LITTLE BETTER DEAL BUT THE PRESIDENT SAID HE HASN'T LOST HOPE THE THING THAT ENCOURAGES ME IS I TALK TO MORE AND MORE MEMBERS OF CONGRESS THAT SEEM TO HAVE A VERY PRACTICAL ATTITUDE ABOUT THIS AND WANT TO FIND A WAY TO GIVE EVERYBODY HEALTH SECURITY SOME SYSTEM OF GUARANTEED INSURANCE ON HEALTH CARE WITHOUT TAKING AWAY THE GOOD THINGS THAT WE HAVE NOW I BELIEVE WE'LL GET A GOOD PLAN OUT OF THE CONGRESS HE CONCLUDED I THINK WE'LL GET IT DONE JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9403030006 940303 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 7/16 HIGH 3 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 33 DAYS 352 34 TO 59 DAYS 360 60 TO 89 DAYS 368 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 372 60 DAYS 380 90 DAYS CERTIFICATES OF DEPOSIT 291 ONE MONTH 3 TWO MONTHS 315 THREE MONTHS 338 SIX MONTHS 359 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 354 ONE MONTH 376 THREE MONTHS 402 SIX MONTHS BANKERS ACCEPTANCES 351 30 DAYS 355 60 DAYS 365 90 DAYS 370 120 DAYS 379 150 DAYS 386 180 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 3 15/16 3 13/16 FOUR MONTHS 4 1/16 3 15/16 FIVE MONTHS 4 1/8 4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/8 ONE MONTH 3 7/8 THREE MONTHS 4 1/8 SIX MONTHS 4 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 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 749 60 DAYS 756 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 744 60 DAYS 753 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 9403030005 940303 SOUTHERN COMFORT TUPELO MISS CONCOCTS AN EFFECTIVE RECIPE FOR ECONOMIC HEALTH EDUCATION RACIAL HARMONY LURE FIRMS WHICH THEN ARE EXPECTED TO PITCH IN LEGACY OF A VISIONARY CITIZEN BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL TUPELO MISS WHEN CORPORATE RECRUITERS HERE HEARD THAT CANADIAN WOODPRODUCTS MAKER NORBORD INDUSTRIES INC WAS SCOUTING FOR A PLACE TO BUILD AN 83 MILLION FACTORY THEY PROMPTLY ANNOUNCED A PROGRAM TO PLANT 300000 LOBLOLLY PINES IN THE AREA THE LURE OF PLENTIFUL RAW MATERIALS SOON HAD NORBORD EXECUTIVES IN TOWN THEN WHEN AN OFFROAD VEHICLE CARRYING LOCAL AND COMPANY OFFICIALS GOT MIRED IN MUD NEAR A POTENTIAL SITE HARRY MARTIN HEAD OF TUPELO'S ECONOMICDEVELOPMENT AGENCY HOPPED OUT AND PUSHED HE GOT SPATTERED HE ALSO GOT NORBORD THE COMPANY LAST YEAR CHOSE TUPELO OVER COMPETITORS IN ALABAMA AND FLORIDA THEY WERE THE MOST PROFESSIONAL PEOPLE WE'VE EVER ENCOUNTERED IN INDUSTRIAL DEVELOPMENT CIRCLES SAYS CHARLES GORDON DIRECTOR OF CORPORATE COMMUNICATIONS WITH NORBORD FRIENDLY PROFESSIONALISM IS JUST ONE INGREDIENT IN A FORMULA THAT HAS MADE THIS COMMUNITY OF 30000 PEOPLE IN THE HEART OF THE IMPOVERISHED RURAL SOUTH A MODEL OF ECONOMIC DEVELOPMENT TUPELO'S PROVEN TRACK RECORD AT DRAWING THE LIKES OF NORBORD WITHOUT HANDING OVER THE KEYS TO THE CITY AND LEANING ON LOCAL TAXPAYERS HAS MADE IT THE ENVY OF CORPORATE RECRUITERS ACROSS THE US THERE CERTAINLY IS SOME JEALOUSY OF TUPELO SAYS J MAC HOLLIDAY A CORPORATE RECRUITER IN GEORGIA THEY KEEP MOVING FORWARD RELENTLESSLY THEY'RE PROBABLY THE BEST SMALL CITY IN THE SOUTH ADDS SHEILA TSCHINKEL AN ECONOMIST WITH THE FEDERAL RESERVE BANK OF ATLANTA TUPELO IS WHAT WE ALWAYS COME BACK TO IN ECONOMICDEVELOPMENT CIRCLES THE UNEMPLOYMENT RATE IN TUPELO EASILY BEATS THE STATEWIDE FIGURE 4 FOR TUPELO AND 62 FOR ALL OF MISSISSIPPI IN DECEMBER THE LATEST MONTH FOR WHICH THE LABOR DEPARTMENT HAS A BREAKDOWN FOR MORE THAN A DECADE NOW THE CITY HAS ADDED AN AVERAGE OF 1000 NEW JOBS A YEAR 1500 IN 1993 ALONE PERCAPITA INCOME IN TUPELO AND SURROUNDING LEE COUNTY IS THE SECOND HIGHEST IN THE STATE THE CITY SUPPORTS ITS OWN SYMPHONY ORCHESTRA AND THE NATION'S LARGEST RURAL HOSPITAL ALL OF WHICH POINTS TO SUCCESS AT ATTRACTING A STEADY INFLOW OF INVESTMENT OVER THE YEARS EIGHTEEN FORTUNE 500 COMPANIES INCLUDING SARA LEE CORP PHILIP MORRIS COS AND COOPER TIRE & RUBBER CO AS WELL AS A LARGE NUMBER OF FURNITURE MAKERS AND INVESTORS FROM AS FAR AWAY AS SWITZERLAND BRAZIL AND AUSTRALIA HAVE SET UP PRODUCTION IN THE TOWN AND ENVIRONS WHAT MAKES TUPELO SO SEDUCTIVE FOR ONE THING OLDFASHIONED SOUTHERN HOSPITALITY OF THE KIND NORBORD ENJOYED THEY REALLY KNOW HOW TO PUSH THE RIGHT BUTTONS SAYS MARTIN SILVER CHIEF EXECUTIVE OF FURNITURE MAKER BAUHAUS USA INC WHICH MOVED TO TUPELO FROM TORONTO FOUR YEARS AGO IN NEW YORK JUST TO GET SOMEONE TO TALK TO ME I HAD TO MAKE THREE PHONE CALLS WITH TUPELO SIX GUYS MET ME AT THE AIRPORT THEY HAD FIVE DIFFERENT SITES READY FOR ME TO LOOK AT WHEN NORBORD CAME CALLING TUPELO WAS READY TO TOUT ITS REFORESTATION PROGRAM THE COMMUNITY DEVELOPMENT FOUNDATION THE TOWN'S MAIN CORPORATE RECRUITER SPENT 15000 TO BUY 300000 LOBLOLLY SEEDLINGS THAT IT THEN GAVE TO FARMERS AND OTHER LANDOWNERS TO PLANT THE TREES WHICH WILL PROVIDE THE KIND OF WOOD NORBORD NEEDS GROW THREE TIMES FASTER IN NORTHEASTERN MISSISSIPPI THAN THEY DO IN CANADA ACCORDING TO MR MARTIN OF THE CDF WE EVEN WENT TO THE SCHOOLS AND GAVE 600 KIDS A TREE EACH TO PLANT IN THEIR YARDS HE SAYS BUT THAT KIND OF TREATMENT DOESN'T MAKE TUPELO MUCH DIFFERENT FROM POORER LOWWAGE SOUTHERN TOWNS HUNGRY FOR JOBS IN FACT TUPELO DOESN'T GO AS FAR AS SOME OF ITS NEIGHBORS CONSIDER THE MORE THAN 250 MILLION IN INCENTIVES ALABAMA GRANTED TO CLINCH A DAIMLERBENZ PLANT LATE LAST YEAR AND THE ESTIMATED 150 MILLION SOUTH CAROLINA SIGNED AWAY TO WIN OVER BAYERISCHE MOTOREN WERKE AG IN 1992 WHAT DOES SET TUPELO APART IS ITS LONGTERM COMMITMENT TO INVESTMENT IN THE COMMUNITY AND IN THE KINDS OF THINGS COMPANIES SAY THEY LOOK FOR WHEN DECIDING WHERE TO SET UP SHOP IN A CORNER OF THE US WHERE LABOR'S MAIN SELLING POINT IS ITS LOW COST AND WHERE RACIAL CONFLICT HAS LEFT DEEP SCARS TUPELO SPENDS HEAVILY TO BUILD A SKILLED WORK FORCE AND ACTS QUICKLY TO ADDRESS MINORITY GRIEVANCES IN ADDITION THE CITY SHUNS BUFFALO HUNTS FOR BIGNAME INVESTORS LIKE MERCEDES AND BMW INSTEAD TARGETING SMALL TO MIDSIZE COMPANIES THAT APPRECIATE SPECIAL TREATMENT LAST YEAR THAT STRATEGY BROUGHT IN 16 NEW FACTORIES WITH TOTAL CAPITAL INVESTMENT OF 100 MILLION DECADES AGO TUPELO MIGHT HAVE JOINED MUCH OF THE REST OF THE SOUTH ON THE PATH TO ECONOMIC STAGNATION DISTINGUISHING ITSELF FOR LITTLE OTHER THAN BEING THE BIRTHPLACE OF ELVIS PRESLEY BUT GEORGE MCLEAN PUBLISHER OF THE TOWN'S DAILY JOURNAL FROM 1934 UNTIL HIS DEATH IN 1983 MADE SURE THAT DIDN'T HAPPEN AFTER DOING GRADUATE WORK AT STANFORD UNIVERSITY MR MCLEAN RETURNED TO TUPELO TO CHAMPION ECONOMIC DEVELOPMENT LOCAL EMPOWERMENT AND OTHER PROGRESSIVE CAUSES EVEN NOW IF YOU READ THE NEWSPAPER THERE'S NO WAY YOU CAN GET AWAY FROM IT SAYS A LOCAL BUSINESSMAN MR MCLEAN URGED TUPELO TO MODERNIZE ITS DAIRY AND POULTRY FARMS HE WAS MORE FERVENT IN ESPOUSING INDUSTRIAL DEVELOPMENT EVEN RISKING HIS OWN BUSINESS FOR THE CAUSE WHEN A SHORTAGE OF FACTORY AND WAREHOUSE SPACE THREATENED GROWTH IN THE LATE 1950S HE MORTGAGED HIS NEWSPAPER TO BUILD MORE THAN 650000 SQUARE FEET OF INDUSTRIAL SPACE THESE DAYS THE CDF A GROUP OF LOCAL BUSINESSES CONTINUES WHAT MR MCLEAN STARTED IT BUYS FARMLAND THAT IS THEN ZONED FOR INDUSTRIAL USE SO THAT IT'S READY WHEN POTENTIAL INVESTORS ARE IN THE NEIGHBORHOOD WHEN EXISTING FACTORY OR WAREHOUSE SPACE BECOMES AVAILABLE THE CDF TAKES OUT CLASSIFIED ADS IN PAPERS ACROSS THE US AND CANADA CANDYWRAPPER MAKER BRYCETOGA USA FOR ONE SAYS IT CHOSE TUPELO LAST YEAR FOR A PRODUCTION SITE PARTLY BECAUSE OF AVAILABLE INDUSTRIAL SPACE THE CDF ALSO WORKS WITH THE LOCAL COMMUNITY COLLEGE ON TRAINING PROGRAMS FOR WORKERS ONCE HERE COMPANIES ARE EXPECTED TO HELP TUPELO MAINTAIN ITS ALLURE AS BOTH A PLACE OF BUSINESS AND A PLACE TO LIVE FOR INSTANCE WHEN THE CDF PASSES AROUND THE HAT FOR FUNDS TO BUY PROPERTY FOR FUTURE INDUSTRIAL USE MEMBER COMPANIES ARE ASKED TO DIG DEEP AS A RESULT SOME 40 OF THE CDF'S 1 MILLION ANNUAL BUDGET COMES FROM THE PRIVATE SECTOR THE REST IS FROM GRANTS AND THE CDF'S INVESTMENT PORTFOLIO THERE'S AN EXPECTATION THAT IF YOU'RE ENJOYING THE BENEFITS OF BEING IN TUPELO YOU'RE EXPECTED TO REINVEST IN THE COMMUNITY SAYS JOHN HICKS PRESIDENT OF NORTH MISSISSIPPI MEDICAL CENTER COMPANY CHIEFS AND PLANT MANAGERS NEW TO TUPELO FIND THEMSELVES QUICKLY INSTALLED ON VARIOUS SUBCOMMITTEES OF THE CDF IF YOU WORK WITH THEM THEY'LL HELP YOU TRAIN YOUR LABOR THEY'LL HELP WITH TRANSPORTATION SAYS VAUGHN GRISHAM A PROFESSOR OF SOCIOLOGY AT THE UNIVERSITY OF MISSISSIPPI WHO RECENTLY COMPLETED A BOOK ON TUPELO AS AN ECONOMICDEVELOPMENT MODEL HE NOTES THAT THOSE WHO DECIDE AGAINST JOINING THE CDF THOUGH NOT PUNISHED ARE LEFT TO THEIR OWN DEVICES TUPELO'S SCHOOL SYSTEM HAS BEEN ONE OF THE CLEAREST BENEFICIARIES OF THE COMMUNITY'S INVESTMENT IN ITS OWN FUTURE IN THE SOUTH COMPANIES OFTEN CAN'T FIND WORKERS EDUCATED ENOUGH TO COPE WITH THE DEMANDS OF INCREASINGLY SOPHISTICATED PRODUCTION HERE MONEY POURS INTO THE SCHOOLS ACCORDING TO MIKE WALTERS SUPERINTENDENT OF THE TUPELO SCHOOL SYSTEM AREA SCHOOLS RECEIVE SOME 500000 A YEAR IN PRIVATE DONATIONS MAINLY FROM BUSINESS IN 1991 LD HANCOCK FOUNDER OF HANCOCK FABRICS DONATED 35 MILLION TO TUPELO SCHOOLS ONE OF THE LARGEST GIFTS TO PUBLIC SCHOOLS FROM AN INDIVIDUAL IN THE STATE'S HISTORY AND TWO YEARS AGO A 17 MILLION BOND ISSUE FOR A NEW HIGH SCHOOL PASSED WITH 89 VOTER APPROVAL THE RETURN ON THESE INVESTMENTS APPEARS TO BE HIGH IN 1993 THE AVERAGE SCORE FOR TUPELOAREA STUDENTS ON THE AMERICAN COLLEGE TEST WAS 207 HIGHER THAN BOTH THE NATIONAL AVERAGE OF 206 AND THE STATE AVERAGE OF 188 I DON'T KNOW ABOUT THE SCHOOLS IN THE REST OF MISSISSIPPI BUT WE WERE VERY IMPRESSED WITH TUPELO'S SCHOOLS SAYS NORBORD'S MR GORDON THE RACIAL BALANCE OF SCHOOLS HERE RARE FOR THE SOUTH REFLECTS ONE OF TUPELO'S OTHER STRONG SELLING POINTS A PRAGMATIC APPROACH TO RACE RELATIONS MUCH OF MISSISSIPPI AND THE SOUTH IN GENERAL HAS SEEN WHITE FLIGHT TO PRIVATE ACADEMIES BUT IN TUPELO 66 OF PUBLICSCHOOL STUDENTS ARE WHITE COMPARED WITH 48 IN THE REST OF THE STATE IN THE EARLY 1960S LEE COUNTY WAS THE FIRST COUNTY IN MISSISSIPPI TO INTEGRATE ITS SCHOOLS BY DOING SO IT AVOIDED THE PUBLICRELATIONS DEBACLES THAT FOR YEARS SHADOWED LITTLE ROCK ARK OXFORD MISS AND OTHER SOUTHERN CITIES THAT RESISTED THE CIVILRIGHTS MOVEMENT FOR US AS NORTHERNERS WE HAD STEREOTYPES OF MISSISSIPPI SAYS MR GORDON WE CERTAINLY DID SENSE RACIAL DISHARMONY ELSEWHERE DURING OUR SEARCH AND WE WANTED NO PART OF IT BUT IN TUPELO WE DIDN'T GET A SENSE OF THAT AT ALL WHEN SIGNS OF RACIAL TENSION DEVELOP THE CITY TYPICALLY ACTS QUICKLY AND QUIETLY THE CITY GOVERNMENT'S DECISION SEVERAL YEARS AGO TO PRIVATIZE GARBAGE COLLECTION PROMPTED COMPLAINTS FROM BLACK LEADERS THAT THE MOVE WOULD ELIMINATE THE CITY'S SOLE BLACK DEPARTMENT HEAD SO TUPELO IMMEDIATELY HIRED A BLACK MAN TO BE PERSONNEL DIRECTOR AND THREE YEARS AGO WHEN BLACKS OPPOSED A PLANNED ANNEXATION BECAUSE IT DIDN'T ENCOMPASS A POOR PRIMARILY BLACK NEIGHBORHOOD CALLED HAVEN ACRES THE ANNEXATION LINES WERE REDRAWN TO INCLUDE THE AREA WHILE TUPELO HAS FURTHER TO GO IN INCORPORATING BLACKS INTO ITS WHITECOLLAR RANKS THERE IS A LEVEL OF COOPERATION THAT'S FAR BEYOND OTHER AREAS OF THE STATE SAYS KENNETH MAYFIELD A FORMER ATTORNEY WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND OWNER OF TUPELOBASED MAYCO FURNITURE MANUFACTURING INC THE UNEMPLOYMENT RATE FOR BLACKS IN TUPELO AT 8 IS HALF THAT FOR BLACKS STATEWIDE TUPELO'S HEAVY INVESTMENT IN WORKER TRAINING HAS BEEN A MAJOR FACTOR IN BRINGING THE BLACK COMMUNITY WITHIN THE AMBIT OF THE TOWN'S ECONOMIC SUCCESS THROUGHOUT THE SOUTH CHEAP LABOR IS A BIG INVESTMENT DRAW BUT CHEAP LABOR OFTEN IS POORLY EDUCATED LABOR MEANING THAT MANY COMMUNITIES CAN DRAW ONLY LOWWAGE LOWSKILL INDUSTRIES HERE VOCATIONAL TRAINING FORMS A BIG PART OF COLLEGE CURRICULA WHICH ARE HEAVILY WEIGHTED TOWARD TOPICS LIKE ADVANCED MACHINING PROCESSES COMPUTERAIDED DRAFTING AND FURNITURE DESIGN TWO YEARS AGO ITAWAMBA JUNIOR COLLEGE IN TUPELO SET UP A COMPUTER INTEGRATED MANUFACTURING CENTER WHERE COMPANIES CAN TRAIN THEIR EMPLOYEES COLLEGE OFFICIALS SPEND MUCH OF THEIR TIME WORKING WITH AREA COMPANIES ON PLANTSPECIFIC TRAINING PROGRAMS OFFICIALS AT TECUMSEH PRODUCTS CO SAY ITAWAMBA'S ABILITY TO TRAIN WORKERS IN MACHINING AND ASSEMBLY WAS A MAJOR REASON THE TECUMSEH MICH MANUFACTURER OF COMPRESSORS DECIDED SIX YEARS AGO ON TUPELO AS THE SITE FOR PRODUCTION OF ITS STATEOFTHEART ROTARY COMPRESSOR ANGELA LOWE A 26YEAROLD MOTHER WHO USED TO SPEND MOST OF HER TIME AT HOME HEARD ABOUT ITAWAMBA'S FURNITUREDESIGN TRAINING PROGRAM A FEW MONTHS AGO AND SIGNED UP NOW SHE IS MAKING WINGBACK CHAIRS AND IS VIRTUALLY ASSURED OF A JOB WHEN SHE FINISHES HER TRAINING SOME COMPANY EXECUTIVES SAY TUPELO MAY HAVE DONE ITS JOB TOO WELL STUDENTS WHO TAKE ITAWAMBA'S PROGRAM IN TOOLANDDYE MAKING FOR INSTANCE USUALLY HAVE JOBS WAITING FOR THEM WHEN THEY FINISH WE'RE TRYING TO HIRE PEOPLE EVERY DAY SAYS JIM DIFFEE PRESIDENT OF BROOKWOOD FURNITURE CO IT KEEPS GETTING TOUGHER 9403030004 940303 CREDIT RATINGS BELLSOUTH CORP NEW YORK STANDARD & POOR'S CORP AFFIRMED ITS TRIPLEA RATINGS OF THE SENIOR LONGTERM DEBT ISSUES OF SEVERAL UNITS OF THIS REGIONAL PHONE COMPANY AND REMOVED THE RATINGS FROM CREDITWATCH ABOUT 76 BILLION OF OUTSTANDING LONGTERM DEBT IS AFFECTED THE RATINGS AGENCY SAID THE UNITS AFFECTED ARE BELLSOUTH TELECOMMUNICATIONS INC BELLSOUTH CAPITAL FUNDING CORP BELLSOUTH SAVINGS & EMPLOYEE STOCK OWNERSHIP TRUST AND BELLSOUTH SAVINGS & SECURITY ESOP TRUST THE RATINGS WERE PLACED ON CREDITWATCH FOLLOWING BELLSOUTH'S ANNOUNCEMENT THAT IT WOULD PROVIDE FINANCIAL BACKING FOR QVC INC'S BID FOR PARAMOUNT COMMUNICATIONS INC RATINGS ON ALL AFFECTED ISSUERS OTHER THAN BELLSOUTH TELECOMMUNICATIONS ARE DEPENDENT ON PARENT BELLSOUTH CORP'S CREDIT STRENGTH S&P SAID THE AFFIRMATIONS FOLLOW THE FAILURE OF QVC'S BID FOR PARAMOUNT WHICH RELIEVED BELLSOUTH CORP OF THE OBLIGATION TO INVEST 2 BILLION IN QVC S&P HOWEVER SAID THE OUTLOOK FOR THE RATINGS WERE NEGATIVE CITING BELLSOUTH'S EVIDENT INTEREST IN INVESTING IN NONCOMMUNICATIONS OPERATIONS WHERE IT WOULD HAVE A MUCH WEAKER BUSINESS POSITION THIS COULD LEAD TO A DECLINE IN CREDITWORTHINESS OVER TIME S&P SAID NEXTEL COMMUNICATIONS INC RUTHERFORD NJ STANDARD & POOR'S CORP RAISED ITS RATINGS ON ABOUT 900 MILLION OF THIS DISPATCHSERVICES COMPANY'S DEBT REFLECTING A RECENT DECISION BY MCI COMMUNICATIONS CORP TO INVEST 13 BILLION IN NEXTEL THE RATINGS AGENCY SAID MCI'S INVESTMENT GIVES NEXTEL ADDED FINANCIAL FLEXIBILITY TO BUILD ITS AMBITIOUS NATIONWIDE DIGITAL NETWORK WHICH IS EXPECTED TO CARRY VOICE DATA AND DISPATCH COMMUNICATIONS ON CELLULARLIKE PHONES S&P RAISED ITS RATINGS ON NEXTEL'S SENIOR UNSECURED DEBT TO TRIPLECPLUS FROM TRIPLECMINUS NEXTEL OPERATES DISPATCH SERVICES FOR TAXIS PLUMBERS AND OTHER MOBILE WORKERS SAFETYKLEEN CORP ELGIN ILL STANDARD & POOR'S CORP LOWERED ITS RATING OF 200 MILLION OF THIS INDUSTRIAL WASTE FLUIDS RECYCLING CONCERN'S SENIOR DEBT TO TRIPLEB FROM SINGLEA CITING LESS ATTRACTIVE INDUSTRY FUNDAMENTALS AND SUBPAR PERFORMANCE BY SEVERAL OF ITS OPERATIONS S&P ALSO SAID THE COMPANY'S 136 MILLION IN RESTRUCTURING CHARGES AND ENVIRONMENTAL RESERVES REDUCE NEARTERM FINANCIAL FLEXIBILITY AND STRETCHES THE BALANCE SHEET S&P SAID THAT WHILE RECENT PERFORMANCE HAS BEEN ADVERSELY AFFECTED BY SOFT ECONOMIC CONDITIONS AND OTHER FACTORS LOOKING AHEAD PERFORMANCE SHOULD GRADUALLY IMPROVE BENEFITING PRIMARILY FROM A LOWER COST STRUCTURE AS WELL AS A NEW PARTS CLEANER FILTRATION SYSTEM WE ARE CERTAINLY DISAPPOINTED BUT UNDERSTAND S&P'S POSITION IN LIGHT OF OUR RESTRUCTURING PROGRAM AND INCREASE IN OUR RESERVES SAID LAURENCE RUDNICK SAFETYKLEEN'S TREASURER WE SHARE THE AGENCY'S COMMENTS THAT THEY BELIEVE OUR PERFORMANCE SHOULD GRADUALLY IMPROVE AND WE LOOK FORWARD TO STRONG CASHFLOW GENERATION AND INCREASED EARNINGS WESTMORELAND COAL CO MOODY'S INVESTORS SERVICE INC DOWNGRADED THE CREDIT RATING ON 50 MILLION OF PHILADELPHIABASED WESTMORELAND'S PREFERRED STOCK TO CAA FROM SINGLEB3 BECAUSE OF CONTINUING WEAKNESS IN THE COMPANY'S CORE COAL OPERATIONS POOR LIQUIDITY AND DWINDLING EQUITY POSITION WESTMORELAND OFFICIALS COULDN'T BE REACHED FOR COMMENT THE COMPANY WHICH REPORTED A 923 MILLION LOSS FOR THE FOURTH QUARTER LAST MONTH SAID THAT ITS PROJECTED CASH NEEDS THIS YEAR ARE SIGNIFICANTLY IN EXCESS OF CASH EXPECTED TO BE GENERATED FROM OPERATIONS IT SAID THEN THAT A SALE OF A MAJOR ASSET WOULD BE LIKELY BUT MOODY'S SAID THE TIMING AND FEASIBILITY OF ANY ASSET SALE IS HIGHLY UNCERTAIN 9403030002 940303 INVESTMENT CLUBS PROLIFERATE FEATURING RISKY TYPE OF PLAYER BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL AS PRESIDENT OF THE CENTRAL OHIO COUNCIL OF INVESTMENT CLUBS LAVONNE RANEY IS DETERMINED TO KEEP OUT THE INFIDELS ONLY THOSE COMMITTED TO BUYING STOCKS FOR THE LONG HAUL THE CORNERSTONE OF INVESTMENTCLUB PHILOSOPHY QUALIFY SHE BELIEVES I TELL THE NEW CLUBS TO START SMALL AND MAKE NEW PEOPLE VISIT TWICE BEFORE INVITING THEM TO JOIN SAYS THE 77YEAROLD COLUMBUS INVESTOR THEY NEED TO UNDERSTAND THEY ARE ON TRIAL AND NOT IN FOR A QUICK HIT SHE HERSELF HAS BEEN INVESTING SINCE THE LATE 1950S BUT AS INTEREST IN INVESTMENT CLUBS SURGES THE INFIDELS ARE SLIPPING IN IF NOT IN CENTRAL OHIO THEN ACROSS THE LAND WHERE THE NATIONAL ASSOCIATION OF INVESTORS CORP KEEPS TABS ON 11300 CLUBS WITH A TOTAL OF 245000 MEMBERS THAT'S UP FROM 7600 CLUBS WITH ABOUT 145000 MEMBERS JUST TWO YEARS AGO A NUMBER OF THE NEW CLUBS REPRESENT A DIFFERENT BREED FROM THE DILIGENT COMPARATIVELY STAID TRADITIONAL INVESTMENT CLUB THEY ARE MORE LIKE THE GO GO INVESTMENT FUNDS OF YESTERYEAR OUT TO CASH IN QUICKLY AND WILLING TO TAKE BIGGER RISKS REX CARLSON AND FIVE OF HIS FRIENDS FOR INSTANCE STARTED THE PUGET SOUND STRATEGIES INVESTMENT CLUB IN JULY AND RECENTLY TOOK A 22 GAIN IN THEIR FIRST STOCK LAS VEGASBASED BOYD GAMING CO AFTER ONLY THREE DAYS NOW THEY THINK THEY HAVE FOUND ANOTHER OUTSTANDING OPPORTUNITY TO MAKE A NICE SPIKE IN CYRIX INC A SEMICONDUCTORCHIP COMPANY SAYS MR CARLSON A 35YEAROLD SEATTLE ACCOUNTANT ALSO MORE AGGRESSIVE THAN THE TYPICAL INVESTMENT CLUB IS TRIPLE F FORMED AT THE END OF 1992 BY GEORGE O'BRIEN A DALLAS REALESTATE AGENT IN HIS LATE 40S AND 13 FORMER COLLEAGUES AT A TECHNOLOGY COMPANY TRIPLE F LOOKS AROUND FOR ISSUES OF SPECULATION HE SAYS CURRENT INVESTMENTS INCLUDE BLOCKBUSTER ENTERTAINMENT CORP WHICH IS BEING BOUGHT OUT BY VIACOM INC AND SEVERAL BIOTECHNOLOGY STOCKS WHILE MR CARLSON AND MR O'BRIEN INSIST THEIR MEMBERS ARE ONLY PLAYING WITH MONEY THEY CAN AFFORD TO LOSE AND WILL BE BUYERS IF THE MARKET STUMBLES NOT ALL NEWCOMERS MAY ACT THE SAME THE RISK SAY MARKET PROFESSIONALS IS THAT MANY FIRSTTIME INVESTORS WHETHER IN MUTUAL FUNDS ON THEIR OWN OR AS PART OF INVESTMENT CLUBS MAY THROW IN THE TOWEL AND FLEE THE MARKET AT THE FIRST SIGNS OF TROUBLE IN THEIR SMALL WAYS THEY THEN WOULD BE EXACERBATING A MARKET DECLINE KENNETH JANKE PRESIDENT OF THE NATIONAL ASSOCIATION OF INVESTORS CORP IS EQUALLY CONCERNED ABOUT PEOPLE FOUNDING OR JOINING STOCK CLUBS SIMPLY BECAUSE SAVINGSDEPOSIT INTEREST RATES ARE SO LOW HE SEES SUCH PEOPLE AS POTENTIALLY FICKLE INVESTORS WHO WILL BOLT THE MARKET IF THE THREAT OF INFLATION RETURNS AND THE STOCKS THEY BOUGHT FOR YIELD SUCH AS UTILITIES TAKE A TUMBLE IT SCARES ME TO DEATH SAYS MR JANKE WHO HAS BEEN WITH THE ORGANIZATION FOR 34 OF HIS 59 YEARS I'M CONCERNED ABOUT THE MAN OR LADY WHO JOINED THREE MONTHS AGO AND MAY BE VERY SORRY THEY GOT INVOLVED THEY DON'T REALIZE THAT THE LOSS OF PRINCIPAL CAN BE PART OF THE MIX MR JANKE REMEMBERS OCTOBER 1987 WHEN THE MARKET PLUNGED BUT HIS MEMBERS KEPT ON BUYING HE EXPECTS MANY OF THE NEW CLUB MEMBERS WOULDN'T BE AS STEADFAST IF THERE WERE A REPEAT OF THE '87 SLIDE THEY'RE DIFFERENT MR JANKE SAYS THE NEW PEOPLE ARE COMING INTO THE MARKET FOR THE WRONG REASON THE RIGHT REASON ACCORDING TO INVESTMENTCLUB LITERATURE IS TO SEARCH OUT PROVEN GROWTH COMPANIES LIKE PHILIP MORRIS COS AND MERCK & CO SELLING AT OR BELOW THEIR FIVEYEAR AVERAGE PRICE/EARNINGS RATIOS AND STICK WITH THEM THE P/E RATIO IS THE SHARE PRICE DIVIDED BY THE COMPANY'S EARNINGS PER SHARE THE IDEA IS TO HOLD ON AND BUY MORE SHARES EVEN IF THE PRICE DECLINES AS LONG AS THE FIVEYEAR HORIZON REMAINS BRIGHT WITH MONTHLY INVESTMENTS RANGING FROM 10 TO 100 CLUB MEMBERS ACCUMULATE SHARES SLOWLY OVER TIME THIS APPROACH HAS GENERALLY PAID OFF WELL WITH MORE THAN 60 OF THE CLUBS SHOWING LIFETIME ANNUAL RETURNS THAT HAVE EQUALED OR EXCEEDED STANDARD & POOR'S 500STOCK INDEX MOST CLUBS HOWEVER LOSE MONEY DURING THEIR FIRST TWO YEARS THE AVERAGE CLUB WHICH HAS 12 MEMBERS HAS A PORTFOLIO VALUED AT ABOUT 89000 THE INVESTMENT CLUBS' NATIONAL ASSOCIATION BASED IN ROYAL OAK MICH HELPS NEW CLUBS GET STARTED BY PROVIDING HANDBOOKS ON ORGANIZATIONAL AND BOOKKEEPING PROCEDURES AS WELL AS FORMS TO FOLLOW WITH WAYS TO CALCULATE FIVEYEAR GROWTH POTENTIAL AND OTHER RESEARCH TIPS IT ALSO HAS A PROGRAM MAKING IT EASY FOR CLUBS TO BUY SINGLE SHARES IN COMPANIES ENTITLING THE CLUB TO RECEIVE THEIR ANNUAL REPORTS AND QUARTERLY MAILINGS INDEED MOST OF THE NEW CLUBS FORMED SINCE THE 1987 MARKET BREAK ARE FIRM FOLLOWERS OF THE ASSOCIATION'S CREED CAROL CLARK AND 17 OF HER FRIENDS IN THE KANSAS CITY MO AREA SET UP THE INTERNATIONAL FUNNY MONEY CLUB A YEAR AGO WE WANTED TO GET EDUCATED ABOUT INVESTMENTS SO WE COULD BE IN CHARGE SHE SAYS IN THE PAST SHE EXPLAINS THE WOMEN'S HUSBANDS HAD MADE SUCH DECISIONS THE CLUB'S MONTHLY MEETINGS ARE ALL BUSINESS MRS CLARK NOTES AS MEMBERS REPORT ON THEIR RESEARCH ASSIGNMENTS AND DISCUSS WHICH STOCKS TO BUY AND SELL ACCORDING TO NATIONAL ASSOCIATION'S GUIDELINES THESE ARE NOT LIGHT AND FLUFFY MOMENTS SHE SAYS IT'S NOT OUR INTENT TO MAKE A FEW THOUSAND AND JUMP OUT OF A STOCK UNLESS THAT IS THE SELL PRICE WE HAD ESTABLISHED THE GROUP'S RESEARCH PROMPTED IT TO BUY STOCK IN MCDONALD'S CORP THE HAMBURGER CHAIN AND NEWELL CO WHICH IS IN THE HOUSEWARES AND STATIONARY BUSINESS THE GROUP IS AHEAD ON ITS MCDONALD'S INVESTMENT BUT SLIGHTLY BEHIND ON NEWELL BOTH OF WHICH IT CONTINUES TO BUY NEW YORKER JOHN RYAN 73 ANOTHER NEW CLUB FOUNDER ISN'T AS PATIENT LIKE MR CARLSON AND MR O'BRIEN HE REPRESENTS THE NEW BREED OF INVESTMENT CLUB MEMBER I SOLD WHEN I SHOULD HAVE BOUGHT AND BOUGHT WHEN I SHOULD HAVE SOLD HE SAYS THE 12000 HE AND HIS TWO SONS HAVE INVESTED DURING THE PAST TWO YEARS IS DOING ONLY SLIGHTLY BETTER THAN THE SAVINGSDEPOSIT RATES THEY ABANDONED OUT OF FRUSTRATION MR RYAN WHO IS RETIRED AND LIVES IN MANHATTAN HOPES TO TAKE A LONG SUCCESSFUL RIDE WITH THE CLUB'S FAVORITE INVESTMENT SPAGHETTI WAREHOUSE INC BUT HE WAVERS ON WHAT HE MIGHT DO IF INFLATION HEATS UP AND INTEREST RATES CONTINUE TO RISE PERHAPS CRIMPING THE GARLAND TEXAS RESTAURANT CHAIN'S PLANS TO OPEN 10 NEW SITES THIS YEAR THAT WOULD MAKE ME REAL NERVOUS HE SAYS 9403030001 940303 HEARD ON THE STREET PROS MULL EFFECTS OF RUSSIAN UPHEAVAL BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL RIGHT NOW ALL INVESTORS SEEM TO CARE ABOUT IS WHICH WAY INTEREST RATES ARE HEADED BUT A FEW PROS ARE BRACING FOR WHAT THEY THINK MIGHT BE THE NEXT MARKET CRISIS ANY NEW TURMOIL IN RUSSIA RUSSIAN UPHEAVAL COULD ROCK MOST US STOCKS BUT HELP A SELECT FEW THE US UNEQUIVOCALLY BACKS RUSSIAN PRESIDENT BORIS YELTSIN BUT THERE'S NO ASSURANCE HIS REGIME WILL SURVIVE IF VLADIMIR ZHIRINOVSKY OR SOME OTHER ANTIUS MILITANT CAPTURED POWER OR RUSSIA FELL INTO CIVIL WAR US STOCKS WOULD SHUDDER MR ZHIRINOVSKY WAS WAITING OUTSIDE THE RUSSIAN PRISON GATES LAST WEEK WHEN TWO YELTSIN ENEMIES RUSLAN KHASBULATOV AND ALEXANDER RUTSKOI WERE RELEASED FROM PRISON OVER MR YELTSIN'S OBJECTIONS THE RELEASE OF THE COUP PLOTTERS IS VERY IMPORTANT SAYS DAVID SHULMAN INVESTMENT STRATEGIST FOR SALOMON BROTHERS THIS MEANS THERE IS NO PENALTY FOR MAKING A RUN AGAINST YELTSIN I WISH WE THE US HAD PUT MORE AID INTO RUSSIA SAYS DAVID DREMAN A MANAGING DIRECTOR AT DREMAN VALUE MANAGEMENT IN JERSEY CITY NJ THE WORST THING THAT CAN HAPPEN IS WE HAVE TO START REARMING STILL A FEW INVESTMENTS WOULD PROBABLY BE HELPED IF RUSSIAN POLITICS TAKE A DRASTIC TURN MONEY MANAGERS AND ANALYSTS POINT TO ALUMINUM COMPANIES DEFENSE CONTRACTORS GOLD MINERS AND OIL PRODUCERS AS POSSIBLE BENEFICIARIES ALUMINUM STOCKS SEVERAL MONEY MANAGERS SAY STOCKS SUCH AS ALUMINUM CO OF AMERICA REYNOLDS METALS AND CYPRUS AMAX MINERALS WOULD BENEFIT FROM ANYTHING THAT DISRUPTS RUSSIAN EXPORTS OF ALUMINUM THE COUNTRY HAS BEEN EXPORTING A LOT OF THE METAL AND THE SWELLING SUPPLY HAS DEPRESSED WORLD PRICES ALUMINUM IS A PUT' ON RUSSIA SAYS MR SHULMAN MEANING THAT ALUMINUM STOCKS WILL RISE IF RUSSIA SINKS INTO ANARCHY DEFENSE STOCKS MANY PORTFOLIO MANAGERS THINK DEFENSE STOCKS SUCH AS LOCKHEED RAYTHEON ESYSTEMS AND LORAL WOULD RISE IF RUSSIA STARTED LOOKING MORE THREATENING IN THE UNITED KINGDOM STOCKS SUCH AS GENERAL ELECTRIC KNOWN AS GEC AND NO RELATION TO THE US COMPANY WESTLAND RACAL ELECTRONICS AND VSEL CONSORTIUM WOULD GET A BOOST SAYS FIONA MACRAE A MONEY MANAGER WITH SCOTTISH WIDOWS INVESTMENT MANAGEMENT IN EDINBURGH SCOTLAND SHE THINKS SUCH A BOOST WOULD BE SHORTLIVED HOWEVER BUT SKEPTICS SAY IT WOULD TAKE A LOT TO REVERSE THE DOWNTREND IN US DEFENSE SPENDING WE HAVE IN PLACE A LONGTERM DEFENSE SHRINKAGE IT STARTED UNDER GEORGE BUSH AND WAS ONLY SLIGHTLY INTERRUPTED BY THE GULF WAR SAYS DAVID BLITZER CHIEF ECONOMIST FOR STANDARD & POOR'S GOLD GOLD PRICES COULD JUMP NOT ONLY BECAUSE RUSSIA IS A SUPPLIER BUT ALSO BECAUSE THE METAL'S PRICE OFTEN JUMPS IN RESPONSE TO GLOBAL POLITICAL CRISES OIL I WOULD LOOK PRETTY CAREFULLY AT OIL STOCKS IF THE RUSSIAN SITUATION DETERIORATES SAYS MR BLITZER IF RUSSIAN OIL EXPORTS WERE PERCEIVED AS SLOWING DOWN PRICES WOULD PROBABLY CREEP UP AND CRUDE PRODUCERS WOULD BENEFIT OTHER COMMODITIES RUSSIA IS ALSO A SUPPLIER OF FERTILIZER METALS AND OTHER COMMODITIES INCO WHICH MINES NICKEL AND COPPER AND AGRICULTURAL MINERALS A FERTILIZER COMPANY MIGHT GET A BOOST FROM LESSENED COMPETITION MUSES ROBERT STOVALL A NEW YORK MONEY MANAGER BUT THINGS WOULDN'T NECESSARILY WORK OUT THAT WAY THE CONVENTIONAL VIEW IS THAT YOU'RE GOING TO SEE COMMODITY PRICES GO TO THE MOON IF RUSSIA CONVULSES SAYS WILLIAM WILBY A MONEY MANAGER WITH OPPENHEIMER MANAGEMENT MAYBE YOU GET JUST THE OPPOSITE COMMODITIES ARE THE ONE THING THEY HAVE TO FALL BACK ON TO EARN FOREIGN EXCHANGE BYRON WIEN STRATEGIST AT MORGAN STANLEY SEES IT THIS WAY A MODERATE CRISIS MIGHT RESULT IN INCREASED RUSSIAN EXPORTS OF COMMODITIES BUT A SEVERE CRISIS WOULD LEAD TO FEWER RUSSIAN EXPORTS AND HIGHER PRICES FOR EVERY GROUP THAT MIGHT BE HELPED BY A CRISIS IN RUSSIA THERE ARE MORE GROUPS THAT COULD BE HURT VULNERABLE INVESTMENTS PROFESSIONALS SAY INCLUDE STOCKS IN COUNTRIES CLOSE TO RUSSIA INTERESTSENSITIVE STOCKS AND INTERNATIONAL CONSUMERGOODS STOCKS NEIGHBORING MARKETS MS MACRAE OF SCOTTISH WIDOWS SAYS A CHANGE IN POWER IN THE KREMLIN COULD SHAKE UP EMERGING MARKETS LIKE TURKEY WHICH SITS ON RUSSIA'S BORDER MUTUAL FUNDS THAT INVEST IN TURKEY WERE REDHOT PERFORMERS IN 1993 BASED ON PAST RUSSIAN SCARES SHE SAYS EUROPEAN STOCK MARKETS WILL PROBABLY PLUNGE QUICKLY BUT RECOVER WITHIN DAYS OR WEEKS SO A CHANGE IN THE KREMLIN SHE SAYS WOULD PRESENT A BUYING OPPORTUNITY SHE THINKS IT FAIRLY LIKELY THAT MR YELTSIN WILL FALL OUT OF POWER THIS YEAR I THINK RUSSIA WILL MOVE TO THE RIGHT WING BUT I DON'T THINK IT WILL BE THE LUNATIC FRINGE SHE SAYS INTERESTSENSITIVE STOCKS BANKS AND OTHER INTERESTSENSITIVE STOCKS SUCH AS INSURANCE COMPANIES AND UTILITIES MIGHT TAKE A HIT MORE DEFENSE SPENDING WOULD ENDANGER THE EFFORTS AT REDUCING THE US BUDGET DEFICIT THAT IN TURN COULD PUSH INTEREST RATES UPWARD CONSUMERGOODS STOCKS THE TURMOIL MIGHT HIT SOME OF THE CONSUMER STOCKS ESPECIALLY ONES THAT ARE TRADING WITH THE SOVIETS SUCH AS RJR NABISCO PHILIP MORRIS AND UNILEVER SAYS MR DREMAN OTHERS MENTION MCDONALD'S AND PEPSICO TRUE RUSSIAN VENTURES ARE ONLY A DROP IN THE BUCKET TO THESE BEHEMOTHS BUT SEVERAL MONEY MANAGERS BELIEVE THE PROSPECT FOR MASSIVE FUTURE SALES IN RUSSIA AS WELL AS CHINA HAS HELPED SUSTAIN THESE STOCKS LESSEN THAT POSSIBILITY THEY SAY AND SOME AIR WILL COME OUT OF THE STOCKS OVERALL A RUSSIAN CRISIS WOULD PROBABLY BE BAD NEWS FOR MOST US STOCKS AND BONDS TODAY'S STOCK VALUATIONS ARE BASED ON AN ASSUMPTION THAT WE LIVE IN A PEACEFUL WORLD MR SHULMAN SAYS DISSENTING FROM THAT VIEW IS EDWARD KERSCHNER STRATEGIST AT PAINEWEBBER WHO THINKS RUSSIA MAKES LITTLE DIFFERENCE TO US MARKETS WE'VE BEEN THROUGH THE GORBACHEV COUP WE'VE BEEN THROUGH THE BURNING OF THE RUSSIAN WHITE HOUSE SAYS MR KERSCHNER THE NORMAL BACKGROUND OF RUSSIA IS CHAOS EVEN A CIVIL WAR IN RUSSIA MR KERSCHNER SAYS WOULD BE A BETTER CHOICE THAN A STRONG ENEMY AND THE DIRECT IMPACT ON US COMPANIES WOULD BE MINIMAL HE SAYS FEW US COMPANIES DO MUCH BUSINESS IN RUSSIA AND MOST THAT DO ARE GIANTS TO THEM A RUSSIAN WRITEOFF WOULD BE SMALL POTATOES SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON DOUBTS MR YELTSIN WILL BE OVERTHROWN ZHIRINOVSKY IS REGARDED AS A CLOWN IN RUSSIA HE SAYS ZHIRINOVSKY WANTS TO TAKE BACK ESTONIA LATVIA AND LITHUANIA NOT TO MENTION ALASKA THIS TOUGHGUY STANCE FUELED MR ZHIRINOVSKY'S STRONG SHOWING IN THE DECEMBER ELECTION BUT MR BLACK SAYS IT WAS A PROTEST VOTE PEOPLE WHO VOTED FOR THE ULTRANATIONALIST DIDN'T TRULY EXPECT HIM TO WIN IN THE UNLIKELY EVENT THAT MR ZHIRINOVSKY DOES GAIN POWER MR BLACK SAYS THE IMPLICATIONS FOR THE STOCK MARKET WOULD BE TERRIBLE THE US MARKET WOULD DECLINE ACROSS THE BOARD AND GERMANY AND FRANCE WOULD HAVE MAJOR SELLOFFS SHORT LIVED MORGAN STANLEY'S NEW SHORT SQUEEZE OPTIONS CONTRACT MAY GO DOWN AS ONE OF THE SHORTESTLIVED WALL STREET INVENTIONS IN HISTORY AFTER UNVEILING THE PRODUCT TO CLIENTS MONDAY MORGAN STANLEY APPARENTLY SHELVED THE IDEA YESTERDAY AFTER SHORTSELLERS MANY OF WHICH ARE CLIENTS RAISED THE ROOF AND BEGAN THREATENING TO MOVE THEIR BUSINESS ELSEWHERE SHORTSELLERS ARE PROFESSIONAL BEARS WHO BET AGAINST STOCKS THE MORGAN STANLEY PRODUCT WAS TO HAVE ALLOWED INSTITUTIONS TO BET ON A RISE IN A BASKET OF STOCKS THAT THE SHORTS WERE BETTING AGAINST A MORGAN STANLEY SPOKESWOMAN DECLINED TO CONFIRM OR DENY THAT THE FIRM YANKED THE PRODUCT WE ARE EVALUATING MARKET DEMAND SHE SAID AND THE FACT IS THERE HAVE BEEN NO TRADES IN THIS BASKET IDEA BUT TRADERS SAY OTHER WALL STREET FIRMS WERE SWAMPED WITH CALLS FROM MIFFED SHORTSELLERS INTERESTED IN MOVING THEIR BUSINESS FROM MORGAN STANLEY 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 9403030146 940222 CORPORATE PERFORMANCE 1993 REVIEW 4TH QUARTER INDUSTRYBYINDUSTRY QUARTERLY EARNINGS THE COLUMNS BELOW SHOW BY INDUSTRIES EARNINGS REPORTED FOR THE FOURTH QUARTER OF 1993 AND THOSE FOR THE LIKE QUARTER OF 1992 WITH PERCENTAGE CHANGES WHERE INDIVIDUAL COMPANY REPORTS COVER THREE MONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS HAVE BEEN USED FOR ALL DOLLAR FIGURES 000S HAVE BEEN OMITTED THE TABLE REFLECTS THE FACT THAT MANY COMPANIES HAVE CLOSED DOWN FACILITIES SOLD OFF ASSETS OR OTHERWISE RESTRUCTURED OPERATIONS THE NET INCOME COLUMNS INCLUDE BOTH INCOME FROM OPERATIONS AND THE GAINS OR LOSSES ASSOCIATED WITH SUCH MOVES THE NET ON CONTINUING OPERATIONS COLUMNS INSOFAR AS POSSIBLE EXCLUDE SUCH GAINS AND LOSSES IN CASES IN WHICH THE AFTERTAX GAINS OR LOSSES HAVEN'T BEEN REPORTED THEY ARE RETAINED IN NET ON CONTINUING OPERATIONS THE INTENT IS TO SHOW HOW EACH INDUSTRY WOULD HAVE FARED IF ITS COMPANIES THROUGHOUT THE QUARTER HAD BEEN STRUCTURED AS THEY WERE AT THE END OF THE PERIOD 9403020184 940302 ECONOMY JAPAN'S BUSINESS COMMUNITY REMAINS NEGATIVE DESPITE SIGNS OF IMPROVEMENT BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE ECONOMY IS PRODUCING SOME OF ITS BRIGHTEST ECONOMIC SIGNALS IN ALMOST A YEAR RAISING HOPES AMONG POLITICAL LEADERS THAT THE LONG DOWNTURN IS FINALLY BOTTOMING OUT BUT THE NATION'S BUSINESS PEOPLE DON'T SHARE THAT PERCEPTION THE BANK OF JAPAN'S QUARTERLY SURVEY OF CORPORATE SENTIMENT RELEASED TUESDAY SHOWED A HALT IN THE NINEMONTH DETERIORATION IN THE BUSINESS OUTLOOK THE MOOD AS MEASURED BY THE CLOSELY WATCHED SURVEY WHICH IS CALLED THE TANKAN REMAINED NEGATIVE BUT THE LEVELING OFF CHEERED SOME ANALYSTS ESPECIALLY ON THE HEELS OF BULLISH DATA ABOUT JAPANESE HOUSING STARTS AND INDUSTRIAL PRODUCTION SKEPTICS HOWEVER NOTED THAT JAPAN'S ECONOMY WAS SHOWING SIMILAR SIGNS OF BRIGHTNESS LAST YEAR BEFORE IT FELL INTO A SECOND PHASE OF ECONOMIC DECLINE THE OUTLOOK FOR JAPAN'S ECONOMY DRAWS A SPECIAL SCRUTINY IN THE US WHOSE ANNUAL TRADE DEFICIT WITH JAPAN APPROACHES 60 BILLION AS JAPAN'S ECONOMY STRENGTHENS US OFFICIALS HOPE THE NATION'S APPETITE FOR AMERICAN GOODS WILL INCREASE AS WELL OFFICIALS IN WASHINGTON THUS HAVE PRESSED THE TOKYO GOVERNMENT TO DO MORE TO STIMULATE THE ECONOMY AND AT LAST WEEKEND'S MEETING OF THE MAJOR INDUSTRIAL NATIONS THE US EXPRESSED FRUSTRATION AT THE PACE OF ACTION BY JAPAN BUT FOR THE ECONOMIC POLICY MAKERS IN TOKYO THE SPLIT BETWEEN THE POSITIVE INDICATORS AND THE CONTINUING PERCEPTION OF SLUGGISHNESS UNDERSCORES THE QUANDARY THEY FACE ON THE ONE HAND THE SIGNS OF IMPROVEMENT ARE ENOUGH TO TEMPT SOME JAPANESE OFFICIALS TO DELAY OR EVEN ABANDON ADDITIONAL STIMULATIVE MEASURES THAT MAY BE NEEDED POLICIES TAKEN BY THE JAPANESE GOVERNMENT HAVE BEEN TREMENDOUS SAID IWAO MATSUDA A SENIOR MEMBER OF THE SHINSEITO PARTY A KEY BLOC IN PRIME MINISTER MORIHIRO HOSOKAWA'S COALITION GOVERNMENT FRANKLY SPEAKING I DON'T THINK ANYONE CAN SUGGEST ANY GOOD MEASURES AT THE MOMENT ON THE OTHER HAND MANY JAPANESE EXECUTIVES AND SOME MEMBERS OF THE BUREAUCRACY SAY THE ECONOMY NEEDS ADDITIONAL STIMULUS INCLUDING INTERESTRATE CUTS FROM ALREADY HISTORIC LOWS TO ENSURE THAT THE ECONOMY PICKS UP SIGNIFICANT STEAM THERE'S NO FEELING THAT THE ECONOMY WILL IMPROVE ANY TIME SOON SAID NOBUYUKI HORIUCHI GENERAL MANAGER OF CORPORATE PLANNING AT TOSHIBA CORP WE NEED DEREGULATION AND A TAX CUT THAT WOULD BE PERMANENT AND THAT WOULD REPLACE THIS YEAR'S ONETIME REDUCTION IN INCOME TAXES ON MONDAY THE DAY BEFORE THE TANKAN WAS RELEASED THE GOVERNMENT SAID THAT HOUSING STARTS JUMPED AT A 207 ANNUAL RATE IN JANUARY AND THAT INDUSTRIAL PRODUCTION ROSE 09 FROM DECEMBER UNEMPLOYMENT FELL 01 PERCENTAGE POINT IN JANUARY TO 27 THE GOVERNMENT SAID TUESDAY THE HOUSING AND INDUSTRIALPRODUCTION DATA GOT PEOPLE REALLY EXCITED ABOUT A RECOVERY SAID JAMES VESTAL CHIEF ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD BUT THE FURTHER YOU GET AWAY FROM THE HEADLINE NUMBERS THE MORE SUSPICIOUS THINGS LOOK THE NUMBERS MAY LOOK BETTER BUT THE PROFITABILITY ISN'T THERE SAID MIKIO KUNISAWA MANAGING DIRECTOR OF NISHIMATSU CONSTRUCTION CO REFLECTING A VIEW COMMONLY HELD AMONG BUSINESSES THE BANK OF JAPAN'S SURVEY ITSELF REFLECTED THE CORPORATE AMBIVALENCE THE LEVEL OF PESSIMISM ABOUT THE FUTURE AMONG MANUFACTURERS DIDN'T WORSEN FOR THE FIRST TIME SINCE MAY AND BUSINESS PEOPLE PROJECTED IMPROVED PROFITS IN THE COMING FISCAL YEAR STILL THE OUTLOOK WAS STUCK AT ITS WEAKEST LEVEL IN 18 YEARS AND BUSINESS INVESTMENT WAS SEEN SHRINKING BY 92 IN THE YEAR STARTING APRIL 1 IT COULD HAVE BEEN WORSE THE CENTRAL BANK'S SURVEY WAS TAKEN IN EARLY FEBRUARY BEFORE USJAPAN TRADE TALKS BROKE DOWN AND A STRONGER YEN MADE JAPANESE EXPORTS LESS ATTRACTIVE TO FOREIGN BUYERS MANY OF THE JAPANESE STATISTICS MAY ALSO HAVE BEEN DISTORTED BY CORPORATE BALANCESHEET ADJUSTMENTS MADE AHEAD OF THE MARCH 31 BOOK CLOSING TO BE SURE SOME ANALYSTS FOUND GOOD NEWS IN THE SURVEY WE DIDN'T HAVE A FURTHER DECLINE WHICH IS A POSITIVE SIGN SAID MICHAEL LOCKROW ECONOMIST AT BARING SECURITIES JAPAN LTD FROM HERE ON CONFIDENCE WILL PICK UP FOR THEIR PART FOREIGN INVESTORS IN JAPAN HAVE CONFIDENCE APLENTY THEY HAVE LED A BUYING SPREE THAT HAS LIFTED THE NIKKEI STOCK AVERAGE JAPAN'S BENCHMARK STOCKMARKET INDICATOR ABOUT 16 SO FAR THIS YEAR FOREIGN BROKERAGE FIRMS NOW PRINT ANALYST REPORTS WITH TITLES SUCH AS BOOM AHEAD AT THE BANK OF JAPAN BUREAUCRATS WERE CAUTIOUS IN THEIR VIEWS WE'RE NOT SURE YET WHETHER THIS IS THE BOTTOM OR NOT SAID A CENTRAL BANK OFFICIAL WE'RE LOOKING FOR A GENTLE RECOVERY SOMETIME IN THE NEXT 13 MONTHS HE ADDED JAPANESE COMPANIES HIT HARD BY THE LONG BUSINESS DOWNTURN WANT A REBOUND THAT GOES BEYOND GENTLE AND ARE CALLING FOR CUTS IN INTEREST RATES ECONOMIC DEREGULATION AND MORE STIMULATIVE SPENDING A CUT IN THE DISCOUNT RATE IS THE MOST LIKELY NEXT STEP THE DISCOUNT RATE WHICH IS CHARGED ON LOANS TO BANKS BY THE CENTRAL BANK STANDS AT A POSTWAR LOW OF 175 BUT WITH PRIVATESECTOR LOAN GROWTH STALLED AND INFLATION IN JAPAN AT 1 OR LESS THERE ARE COMPELLING REASONS TO MOVE RATES EVEN LOWER GIVEN THIS TANKAN AN INTERESTRATE CUT IS NECESSARY SAID ROBERT FELDMAN CHIEF ECONOMIST AT SALOMON BROTHERS ASIA LTD HE NOTED THAT A RATE CUT WOULD ALSO HELP THE BANKING SYSTEM WHICH IS STRUGGLING UNDER AN ESTIMATED 285 BILLION IN BAD LOANS BUT JAPANESE POLITICS MAKE IT HARD TO CARRY OUT OTHER MEASURES ON MONDAY THE PRIME MINISTER REPORTEDLY TOLD LEADERS OF THE RULING PARTY TO SPEED THE IMPLEMENTATION OF MARKETOPENING MEASURES AIMED AT REDUCING JAPAN'S TRADE SURPLUS BUT MR HOSOKAWA ALSO HOPES TO RESHUFFLE HIS CABINET LATER THIS WEEK POSSIBLY INCLUDING SHIFTS IN THE FINANCE AND ECONOMICPLANNING PORTFOLIOS THAT PROBABLY MEANS THAT POWER STRUGGLES WILL TAKE PLACE WITHIN THE FRAGILE COALITION AND THAT WOULD SIDETRACK POLITICIANS FROM CONCENTRATING ON ECONOMIC POLICY AND USJAPAN TRADE RELATIONS 9403020183 940302 MARKETING & MEDIA BARRON'S WEEKLY TO START APPEARING IN A NEW FORMAT NEW YORK BARRON'S THE BUSINESS AND FINANCIAL WEEKLY PUBLISHED BY DOW JONES & CO WILL BEGIN APPEARING IN A REDESIGNED FORMAT WITH THE MARCH 7 ISSUE OF THE MAGAZINE THE CHANGES DON'T ALTER THE CONTENT OF BARRON'S THE SUBSTANCE OF WHAT WE DO REMAINS THE SAME SAID JAMES P MEAGHER EDITOR OF BARRON'S BUT REDESIGNED FOR A CLEANER CRISPER LOOK MR MEAGHER SAID MOST OF THE CHANGES CAME FROM SUGGESTIONS WE'VE RECEIVED FROM READERS OVER THE YEARS A HIGHLIGHT OF THE REDESIGN IS A NEW PULLOUT SECTION MARKET WEEK THE PULLOUT SECTION COMBINES BARRON'S DISPLAY OF MARKET STATISTICS AND ITS MARKETS COLUMNS INCLUDING COMMENTARIES ON FOREIGN AND DOMESTIC STOCK MARKETS CREDIT MARKETS OPTIONS AND COMMODITIES OTHER REGULAR FEATURES AND ARTICLES WILL BE DIVIDED BETWEEN THE FRONT AND BACK PORTIONS OF THE MAGAZINE THE FIRST CHANGE READERS WILL NOTICE IS THE REDESIGNED COVER WHICH INCLUDES MOVING THE START OF ALAN ABELSON'S UP AND DOWN WALL STREET COLUMN TO AN INSIDE PAGE NEAR THE FRONT OF THE MAGAZINE IN ADDITION PAGES WILL BE FOUR COLUMNS WIDE INSTEAD OF THE PREVIOUS FIVE COLUMNS AND WE ARE ELIMINATING THE JUMPING OF STORIES FROM ONE PAGE TO ANOTHER FAR AWAY MR MEAGHER SAID THAT IMPROVED CONTINUITY SHOULD HELP READERS WHO LIKE STORIES TO BE IN ONE PLACE AMONG THE EDITORIAL FEATURES THAT WILL EITHER BE INTRODUCED OR REFORMATTED FOR THE NEW DESIGN EXPANDED WASHINGTON COVERAGE A FOLLOWUP SECTION ON ARTICLES THAT APPEARED IN EARLIER EDITIONS BOOK REVIEWS WHICH MR MEAGHER SAID HAVE BEEN ON VACATION FROM BARRON'S RECENTLY AND AN EXPANDED SECTION REVIEWING KEY EVENTS OF THE PAST WEEK AND HIGHLIGHTING THOSE EXPECTED IN THE COMING WEEK THE REDESIGN WAS DONE BY WBMG INC NEW YORK IN ADDITION TO BARRON'S DOW JONES PUBLISHES THE WALL STREET JOURNAL OTHER BUSINESS PUBLICATIONS ELECTRONIC NEWSWIRES DOW JONES TELERATE FINANCIAL INFORMATION AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9403020182 940302 LAW SUPREME COURT SAYS COPYRIGHT DEFENDANT CAN COLLECT LEGAL FEE WASHINGTON THE SUPREME COURT SAID A DEFENDANT WHO WINS A COPYRIGHT LAWSUIT SHOULD HAVE THE SAME RIGHT AS A VICTORIOUS PLAINTIFF TO RECOVER ATTORNEYS' FEES THE ACTION REVERSED A LOWERCOURT RULING THAT SAID WINNING PLAINTIFFS GENERALLY SHOULD BE AWARDED THEIR LAWYERS' FEES AS A MATTER OF COURSE WHILE WINNING DEFENDANTS SHOULD COLLECT FEES ONLY IF THEY SHOW THAT THE ORIGINAL SUIT WAS FRIVOLOUS OR BROUGHT IN BAD FAITH THE FEDERAL COPYRIGHT ACT REQUIRES THAT WINNING PLAINTIFFS AND DEFENDANTS IN COPYRIGHT DISPUTES BE TREATED EQUALLY ON THE LEGALFEES ISSUE A UNANIMOUS HIGH COURT SAID THE ACTUAL DECISION REGARDING WHETHER TO FORCE A LOSING PARTY TO PAY THE WINNER'S LEGAL EXPENSES SHOULD BE LEFT TO THE DISCRETION OF THE TRIAL JUDGE THE HIGH COURT ADDED THE RULING WAS A PARTIAL VICTORY FOR ROCK SINGER JOHN FOGERTY HE HAD SUCCESSFULLY DEFENDED A COPYRIGHTINFRINGEMENT SUIT FILED BY A MUSIC COMPANY THAT ACCUSED HIM OF UNLAWFULLY REMAKING ONE OF HIS OLD SONGS THE RIGHTS TO WHICH THE COMPANY HAD ACQUIRED TWO LOWER COURTS HAD DENIED MR FOGERTY'S REQUEST THAT HIS LEGAL FEES BE REIMBURSED BY THE COMPANY THE HIGH COURT YESTERDAY SENT THE CASE BACK TO A FEDERAL APPEALS COURT WITH INSTRUCTIONS THAT AN EVENHANDED APPROACH BE USED IN DECIDING WHETHER MR FOGERTY SHOULD BE REIMBURSED FOGERTY VS FANTASY INC SEPARATELY THE HIGH COURT DISMISSED A CLOSELY WATCHED SECURITIESLAW CASE BECAUSE THE PARTIES SETTLED THEIR DISPUTE THE CASE PRESENTED THE QUESTION OF WHETHER A FEDERAL LAW BARRING FRAUD IN INITIAL PUBLIC SALES OF STOCK ALSO APPLIES TO RESALES OF THE SHARES LOWER FEDERAL COURTS HAVE ISSUED CONFLICTING RULINGS ON THE SCOPE OF THE PROVISION KNOWN AS SECTION 122 OF THE SECURITIES ACT OF 1933 ALLEN & CO VS PACIFIC DUNLOP HOLDINGS INC 9403020181 940302 TECHNOLOGY & MEDICINE EPA ISSUES RULE TO CUT EMISSIONS AT CHEMICAL PLANTS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY ISSUED A LONGAWAITED REGULATION THAT IT SAID WILL REQUIRE CHEMICAL PLANTS TO REDUCE EMISSIONS OF AIRBORNE TOXIC WASTES 88 THE RULE WHICH ADMINISTRATOR CAROL BROWNER TERMED ONE OF THE MOST SWEEPING AIR POLLUTION RULES EPA HAS EVER ISSUED IS EXPECTED TO AFFECT ABOUT 370 CHEMICAL PLANTS MOST OF THEM IN TEXAS LOUISIANA AND NEW JERSEY PROPOSED IN THE WANING DAYS OF THE BUSH ADMINISTRATION IT WILL REDUCE ALLOWABLE EMISSIONS FOR 112 OF THE 189 AIRBORNE TOXIC CHEMICALS INCLUDING BENZENE CHLOROFORM AND VINYL CHLORIDE THAT THE EPA MUST REGULATE UNDER THE 1990 CLEAN AIR ACT THE EPA SAID THE RULE WILL REQUIRE CHEMICAL COMPANIES TO SPEND AN ESTIMATED 450 MILLION FOR NEW EQUIPMENT AND WILL RAISE THEIR OPERATING COSTS 230 MILLION ANNUALLY THE CHEMICAL MANUFACTURERS' ASSOCIATION PUT THE CAPITAL COSTS AT 1 BILLION THE EPA SAID THE RULE COULD RAISE THE PRICE OF INDIVIDUAL CHEMICALS AS MUCH AS 3 THE NEW REQUIREMENTS WILL BE PHASED IN OVER THREE YEARS FOR EXISTING PLANTS NEW PLANTS MUST COMPLY IMMEDIATELY THE CHEMICAL INDUSTRY WHICH HAS KNOWN THE RULE WAS COMING SINCE 1990 IS THOUGHT TO HAVE DONE MUCH TO ACHIEVE THE REQUIRED REDUCTIONS ALREADY JOE MAYHEW ASSISTANT VICE PRESIDENT FOR ENVIRONMENT AND POLICY ANALYSIS AT THE CHEMICAL MANUFACTURERS' ASSOCIATION ESTIMATES THAT TOXIC EMISSIONS ALREADY HAVE BEEN REDUCED ABOUT 35 BELOW 1990 LEVELS THE RULE WILL ALLOW SOME EMISSIONS AVERAGING BY CHEMICAL PLANTS MEANING THAT A GIVEN POLLUTION SOURCE SUCH AS A SMOKESTACK NEED NOT REDUCE AIR EMISSIONS IF OFFSETTING REDUCTIONS ARE ACHIEVED ELSEWHERE IN THE PLANT BUT UNLIKE THE BUSH ADMINISTRATION PROPOSAL THE FINAL RULE WON'T ALLOW AVERAGING AMONG ALL POLLUTION SOURCES WITHIN A GIVEN PLANT IN A PLANT THAT HAS 1000 POLLUTION SOURCES FOR EXAMPLE AVERAGING WILL BE LIMITED TO ABOUT 25 POLLUTION SOURCES IN ADDITION THE NEW PLAN UNLIKE ITS PREDECESSOR WILL ALLOW INDIVIDUAL STATES TO BLOCK AVERAGING ALSO YESTERDAY THE EPA ANNOUNCED A FINAL RULE CUTTING ANNUAL EMISSIONS OF NITROGEN OXIDE A KEY INGREDIENT IN ACID RAIN FROM 700 COALFIRED ELECTRIC UTILITY PLANTS IT ALSO PROPOSED RULES AIMED AT REDUCING BY 95 TOXIC AIR POLLUTANTS FROM THE MAGNETICTAPE MANUFACTURING INDUSTRY AND AT REDUCING BY 99 EMISSIONS OF ETHYLENE OXIDE FROM COMMERCIAL STERILIZATION OPERATIONS FOR MEDICAL AND OTHER EQUIPMENT SEPARATELY THE CLINTON ADMINISTRATION PROPOSED LIMITING EXPORTS OF HAZARDOUS WASTE UNDER THE PLAN WHICH MUST BE APPROVED BY CONGRESS THE US COULD CONTINUE TO EXPORT HAZARDOUS WASTES TO CANADA AND MEXICO SUCH SHIPMENTS NOW TOTAL AN ESTIMATED 140000 TONS ANNUALLY THE US HAS BILATERAL AGREEMENTS ON SUCH SHIPMENTS WITH BOTH COUNTRIES SHIPMENTS TO OTHER COUNTRIES CURRENTLY ESTIMATED AT 5000 TONS ANNUALLY MUCH OF IT DISCARDED BATTERIES WOULD NO LONGER BE ALLOWED 9403020180 940302 TEXAS JOURNAL IN THE OTHER STATE LOTTERY TEXAS STUDENTS MAY TURN OUT TO BE THE BIGGEST LOSERS BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL CONSIDER FOR A MOMENT THE TEXAS LOTTERY NOT THE PENNYANTE ONE THAT GETS ALL THE ATTENTION THESE DAYS BUT THE ONE WITH THE REAL MONEY THE ONE WORTH HUNDREDS OF MILLIONS OF DOLLARS THIS YEAR'S WINNER AMOCO CORP THE CHICAGOBASED ENERGY COMPANY WITH PLANTS IN TEXAS CITY AND GALVESTON WON TWO OF THE TOP PICKS IN A STATEWIDE DRAWING HELD EARLIER THIS YEAR TO DETERMINE WHICH COMPANIES ARE ELIGIBLE FOR TAXEXEMPT FINANCING AMOCO'S DRAW GUARANTEES IT AT LEAST 78 MILLION IN TAXFREE BONDS THIS YEAR AMOCO'S COUP IS PART OF AN ANNUAL SCRAMBLE BY ENERGY COMPANIES APARTMENT BUILDERS STUDENTLOAN ORGANIZATIONS AND OTHERS TO WIN A PIECE OF AN ESTIMATED 900 MILLION IN TAXEXEMPT FINANCING FOR PRIVATE COMPANIES ALTHOUGH NO TAX DOLLARS ARE USED TO REPAY THE BONDS FEDERAL GUIDELINES LIMIT THE AMOUNT OF TAXEXEMPT BONDS A STATE CAN ISSUE FOR PRIVATE USE THE THEORY BEHIND THE PROGRAM MANY OF THE PROJECTS SERVE A PUBLIC PURPOSE AMOCO FOR INSTANCE WILL USE ITS 78 MILLION TO FINANCE POLLUTIONCONTROL AND SOLIDWASTE FACILITIES AS A RESULT LIMITED TAXEXEMPT BONDS ARE ISSUED BY VARIOUS PUBLIC AGENCIES OR SPECIAL ISSUING CORPORATIONS AT LOWERTHANMARKET INTEREST RATES AND ARE THEN REPAID BY THE COMPANIES BUT BECAUSE DEMAND FOR THE FINANCING FAR EXCEEDS THE LIMIT STATE OFFICIALS HAVE RESORTED TO A LOTTERY DRAWING TO DECIDE WHO WINS THE COVETED BONDS THIS YEAR A TOTAL OF 62 PRIVATE ENTITIES VIED FOR THE MONEY IN FOUR CATEGORIES MORTGAGEREVENUE BONDS TO PROVIDE MORTGAGES FOR LOW AND MODERATEINCOME HOME BUYERS INDUSTRIALDEVELOPMENT BONDS TO HELP SMALL MANUFACTURING COMPANIES EXPAND MULTIFAMILYHOUSING BONDS TO BUILD AND RENOVATE AFFORDABLE RENTAL APARTMENTS AND A CATCHALL OTHER CATEGORY THAT INCLUDES POLLUTIONCONTROL FACILITIES AND STUDENTLOAN BONDS OF THE CONTENDERS 27 WERE CHOSEN TO RECEIVE FINANCING OTHER WINNERS THIS YEAR INCLUDE TEXACO INC WHITE PLAINS NY HOECHST CELANESE CORP SOMERVILLE NJ AND THE COMANCHE PEAK NUCLEAR POWER PLANT OWNED BY TEXAS UTILITIES CO DALLAS EACH OF THE COMPANIES IS ELIGIBLE FOR 50 MILLION IN TAXEXEMPT FINANCING FOR TEXASBASED PROJECTS IN ADDITION THE SOUTHEAST TEXAS HOUSING FINANCE CORP IN PASADENA CAN NOW ISSUE UP TO 25 MILLION FOR SIX DIFFERENT LOWINCOME APARTMENT PROJECTS AND GRAPEVINE'S TRENCOR JETCO INC WILL RECEIVE 8 MILLION TO EXPAND ITS EXCAVATINGEQUIPMENTMANUFACTURING COMPANY THE BIG LOSERS THIS YEAR NONPROFIT HIGHEREDUCATION AUTHORITIES THAT PURCHASE STUDENT LOANS FROM BANKS FOR THE FIRST TIME SINCE ANYONE CAN REMEMBER NO STUDENTLOAN AUTHORITY WAS AMONG THE TOP PICKS IN THE BOND LOTTERY TAXEXEMPT FINANCING WHICH CARRIES AN INTEREST RATE ABOUT 15 TO 2 LOWER THAN MARKET RATES IS CONSIDERED THE LIFEBLOOD OF STUDENTLOAN AGENCIES WHICH RELY ON THE BONDS TO BORROW AT A LOWER INTEREST RATE THAN THE RATE ON THE LOANS THEY BUY FROM THE BANKS WITHOUT THE AGENCIES TO BUY THE LOANS THE BANKS ARE LESS LIKELY TO MAKE THEM TO STUDENTS IT TRULY IS THE LUCK OF THE DRAW SAYS JEANNE TALERICO WHO ADMINISTERS THE PRIVATE ACTIVITY BOND PROGRAM FOR THE BOND REVIEW BOARD I CAN'T THINK OF A YEAR THAT THEY'VE ALL BEEN SO LOW ON THE LIST ALTHOUGH STUDENTLOAN OFFICIALS SAY THEY AREN'T PANICKING YET ANOTHER YEAR WITHOUT THE FINANCING COULD BEGIN TO CURTAIL THE AVAILABILITY OF STUDENT LOANS IN TEXAS FOR THE CENTRAL TEXAS HIGHER EDUCATION AUTHORITY IN SAN MARCOS THIS IS THE THIRD YEAR IN A ROW THAT IT HAS FALLEN OUT OF THE MONEY THE AGENCY DREW 12TH PLACE BUT CURRENTLY ONLY THE TOP EIGHT WILL RECEIVE FINANCING WE'RE NOT IN A CRITICAL SITUATION YET BUT IT COULD HAPPEN SAYS ROBERT W MARTENIS THE AUTHORITY'S EXECUTIVE DIRECTOR WE'LL BE IN A TIGHTMONEY SITUATION BY THE BEGINNING OF NEXT YEAR THE SHORTTERM SOLUTION FOR SOME AGENCIES IS TO BORROW MONEY AT MARKET RATES BUT THAT OFTEN RESULTS IN BORROWING AT HIGHER RATES THAN THE LOWINTEREST STUDENT LOANS COLLECT THAT CAN CONTINUE FOR A WHILE BUT EVENTUALLY THE AUTHORITIES CAN'T AFFORD TO CONTINUE THE SUBSIDY THE BRAZOS HIGHER EDUCATION AUTHORITY IN WACO ALREADY HAS SECURED 30 MILLION IN NEW CREDIT AT MARKET RATES TO GET BY WE FEEL LIKE IF WE CAN JUST BREAK EVEN ON OUR COST ON THE LINES OF CREDIT WE'LL DO THAT SAYS SECRETARY/TREASURER MURRAY WATSON BUT BRAZOS HAS REASON TO BE OPTIMISTIC BY DRAWING 10TH PLACE IN ITS LOTTERY CATEGORY THE AGENCY HAS A CHANCE OF RECEIVING AT LEAST SOME FINANCING IF ANY OF THE TOP EIGHT PICKS FALLS OUT FIRMS HAVE UNTIL LATE APRIL AND EARLY MAY TO FINALIZE THE FINANCING THOSE THAT DON'T LOSE THEIR PLACE AND THE ALLOCATION GOES TO THE NEXT IN LINE BUT THE FINANCING DROUGHT FOR THE STUDENTLOAN AGENCIES HAS LED SOME CRITICS TO CALL FOR A REVIEW OF THE LOTTERY THEY ARE ESPECIALLY BOTHERED BY THE FACT THAT THE STUDENTLOAN ORGANIZATIONS AND THE ENERGY COMPANIES ARE LUMPED TOGETHER IN THE SAME OTHER CATEGORY THIS YEAR REQUESTS IN THAT CATEGORY TOTALED ABOUT 1 BILLION NEARLY THREE TIMES THE 3786 MILLION IN FINANCING THAT WAS AVAILABLE I THINK THE STATE LEGISLATURE NEEDS TO LOOK AT THIS SAYS MR MARTENIS TO BE MIXED IN WITH AMOCO AND CITGO AND OTHER OIL COMPANIES DOESN'T MAKE SENSE BUT MOST AGREE THAT THE LOTTERY SYSTEM WHICH BEGAN IN 1990 IS BETTER THAN THE OLD METHOD THEN FINANCING WAS ALLOCATED ON A FIRSTCOME FIRSTSERVED BASIS MANY COMPANIES HIRED SECURITY GUARDS BEFORE CHRISTMAS TO WAIT IN LINE OUTSIDE STATE OFFICES UNTIL THE JANUARY APPLICATION DATE PEOPLE WHO DON'T GET FINANCING ARE DISAPPOINTED SAYS JERRY DUNN ASSISTANT GENERAL MANAGER OF THE GULF COAST WASTE DISPOSAL AUTHORITY THE GOVERNMENT AGENCY THAT WILL ISSUE THE BONDS FOR FOUR OF THE TOP EIGHT ENERGY COMPANIES SELECTED BUT I DON'T THINK ANYBODY IS COMPLAINING ABOUT THE INHERENT FAIRNESS 9403020179 940302 S&P'S RATING OUTLOOK FOR NORTHEAST UTILITIES IS REVISED TO NEGATIVE NEW YORK STANDARD & POOR'S CORP SAID IT AFFIRMED ITS RATINGS OF TRIPLEBMINUS ON SENIOR UNSECURED DEBT AND OF A3 ON COMMERCIAL PAPER FOR NORTHEAST UTILITIES BUT THE AGENCY REVISED ITS RATING OUTLOOK ON THE UTILITY TO NEGATIVE FROM STABLE NORTHEAST UTILITIES HAS ABOUT 59 BILLION OF TOTAL DEBT AND PREFERRED STOCK OUTSTANDING THE NEGATIVE OUTLOOKS FOR NORTHEAST AND ITS SUBSIDIARIES REFLECT A VAST OVERSUPPLY OF POWER IN THE NORTHEAST THE RELATIVELY WEAK REGIONAL ECONOMY HIGH AND INCREASING UTILITY RATES AND THE SIGNIFICANT CONCENTRATION OF NUCLEAR FACILITIES MOREOVER THE UTILITY'S MILLSTONE NUCLEAR STATION ALTHOUGH CURRENTLY OPERATING WELL IS STILL IN THE PROCESS OF REESTABLISHING CONSISTENT RELIABLE OPERATIONS S&P SAID THE AGENCY LOWERED ITS RATING ON PUBLIC SERVICE CO OF NEW HAMPSHIRE'S SENIOR SECURED DEBT TO DOUBLEBPLUS FROM TRIPLEBMINUS AND PREFERRED STOCK TO DOUBLEBMINUS FROM DOUBLEB S&P ALSO LOWERED ITS RATINGS ON NORTH ATLANTIC ENERGY CORP'S SENIOR SECURED DEBT TO DOUBLEB FROM DOUBLEBPLUS AND SENIOR UNSECURED DEBT TO DOUBLEBMINUS FROM DOUBLEB BOTH PUBLIC SERVICE AND NORTH ATLANTIC ENERGY ARE UNITS OF NORTHEAST UTILITIES S&P SAID IT AFFIRMED ITS TRIPLEBPLUS SENIOR SECURED TRIPLEB PREFERRED STOCK AND A2 COMMERCIAL PAPER RATINGS OF CONNECTICUT LIGHT & POWER CO HOWEVER S&P REVISES ITS RATING OUTLOOK ON CONNECTICUT L&P TO NEGATIVE FROM STABLE S&P AFFIRMS ITS TRIPLEBPLUS SENIOR SECURED TRIPLEB PREFERRED STOCK AND A2 COMMERCIAL PAPER RATINGS OF WESTERN MASSACHUSETTS ELECTRIC CO NORTHEAST UTILITIES EXPRESSED DISAPPOINTMENT AT S&P'S REPORT BOTH PUBLIC SERVICE AND NORTH ATLANTIC ENERGY ARE ON SIGNIFICANTLY IMPROVING TRENDS AND IN ALMOST EXACTLY THE SAME POSITION FINANCIALLY AS PROJECTED THREE YEARS AGO THE UTILITY SAID WITH A HEALTHY CASH FLOW PUBLIC SERVICE HAS RETIRED 164 MILLION OF LONGTERM DEBT SINCE IT WAS ACQUIRED BY NORTHEAST UTILITIES IN 1992 IT WILL PAY DOWN AN ADDITIONAL 384 MILLION OF DEBT BY DECEMBER 1997 IT SAID THE UTILITY SAID IT DISAGREES WITH S&P CONTENDING THAT IT WILL CONTINUE TO SHOW IMPROVING TRENDS IN ITS SUBSIDIARIES' CREDITWORTHINESS 9403020178 940302 NYNEX SUBSIDIARY OF PACTEL DISCUSS WIRELESS VENTURE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO BABY BELLS NYNEX CORP OF NEW YORK AND THE CELLULAR UNIT OF SAN FRANCISCO'S PACIFIC TELESIS GROUP ARE IN TALKS TO FORM AN ALLIANCE TO BID JOINTLY FOR NEW LICENSES TO OFFER PERSONAL COMMUNICATIONS SERVICES ACCORDING TO PEOPLE FAMILIAR WITH THE PROJECT THE PACT WOULD MARK THE FIRST TIME THAT TWO REGIONAL BELL TELEPHONE COMPANIES HAVE LINKED UP TO ENTER WHAT THE INDUSTRY HOPES WILL BECOME A BOOMING MARKET FOR NEW POCKETPHONE AND DATA SERVICES IT WOULD LET NYNEX AND PACTEL'S NEW CELLULAR OPERATION KNOWN AS AIRTOUCH COMMUNICATIONS INC POOL CAPITAL AND TECHNICAL EXPERTISE TO BID FOR THE NEW PCS LICENCES WHICH MAY FETCH UP TO 10 BILLION FOR THE FEDERAL GOVERNMENT NYNEX AND PACTEL DECLINED TO COMMENT ALTHOUGH THE TWO COMPANIES HAD SCHEDULED A NEWS CONFERENCE FOR TODAY THEY ABRUPTLY CANCELED IT LAST NIGHT AND DIDN'T SAY WHEN AN ANNOUNCEMENT MIGHT BE MADE PCS WAS TOUTED AS THE BIG NEW RIVAL TO CELLULAR PHONE SERVICE EVENTUALLY OFFERING SEAMLESS WIRELESS COMMUNICATIONS TARGETED AT THE CONSUMER MARKET AND CAPABLE OF OPERATING WHERE CELLULAR CAN'T SUCH AS INSIDE BUILDINGS AND TUNNELS BUT THE FEDERAL COMMUNICATIONS COMMISSION WHICH HAD BEEN EXPECTED TO BEGIN AUCTIONING OFF UP TO SEVEN LICENSES IN EACH MARKET ACROSS THE COUNTRY STARTING IN MAY NOW MAY FACE DELAYS THE DELAY COULD PROVIDE AN OPPORTUNITY FOR ANOTHER RIVAL FOR PCSLIKE SERVICES DUBBED SMR FOR SPECIALIZED MOBILE RADIO THE SMR APPROACH GOT A BOOST THIS WEEK WHEN MCI COMMUNICATIONS CORP SAID IT WOULD PAY 13 BILLION FOR A 17 STAKE IN WIRELESS UPSTART NEXTEL COMMUNICATIONS INC THE BABY BELLS ARE VIRTUALLY BARRED FROM COMPETING FOR THE BIGGEST CHUNK OF PCS LICENSES IN THEIR HOME TERRITORIES IF THEY ALREADY HAVE A MAJOR PRESENCE IN THE CELLULAR MARKET THEY WILL BE ALLOWED TO BID FOR A SMALLER PART OF THE SPECTRUM IN SUCH CASES MORE IMPORTANT HOWEVER NYNEX AND THE PACTEL UNIT WOULD BE ABLE TO BID AGGRESSIVELY FOR LICENSES IN REGIONS IN WHICH THEY DON'T OFFER CELLULAR SERVICE 9403020177 940302 AMBER'S FEBRUARY SALES ROSE DALLAS AMBER'S STORES INC SAID ITS SALES ROSE 48 IN FEBRUARY TO 47 MILLION FROM 32 MILLION A YEAR EARLIER THE ARTSANDCRAFTS RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR FELL 5 9403020176 940302 MICHAELS STORES SALES RISE IRVING TEXAS MICHAELS STORES INC SAID ITS SALES ROSE 40 IN FEBRUARY TO 492 MILLION FROM 351 MILLION A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 13 9403020174 940302 INSIDE TRACK VEGGIEBURGER MAKER RETAINS ITS SIZZLE DESPITE SOME SALES OF STOCK BY CHAIRMAN BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WHERE'S THE BEEF IN THESE BURGERS THERE ISN'T ANY BUT THAT ISN'T STOPPING INVESTORS FROM GOBBLING UP SHARES IN VEGGIEBURGER MAKER WHOLESOME & HEARTY FOODS INC HEAVY BUYING HAS SENT THE STOCK UP NEARLY EIGHTFOLD FROM ITS SPLITADJUSTED 52WEEK LOW OF 3 A SHARE TO ITS CLOSE OF 2375 YESTERDAY THE STOCK IN FACT WAS LAST YEAR'S TOP PERFORMER ON THE NASDAQ STOCK MARKET JUMPING MORE THAN SIXFOLD LITTLE SURPRISE THEN THAT COMPANY CHAIRMAN PAUL WENNER HAS BEEN PARING HIS HUGE HOLDINGS IN THE FIRM TAKING PROFITS IN THE SIZZLING SHARES OF THE PORTLAND ORE PURVEYOR OF THE GARDENBURGER A MEATLESS SOYLESS PATTIE SOLD PRECOOKED AND FROZEN TO RESTAURANTS AND SUPERMARKETS NATIONWIDE MR WENNER A 46YEAROLD CHEF AND THE COMPANY'S FOUNDER SOLD 150000 SHARES BETWEEN OCT 4 AND DEC 6 LAST YEAR AND SOLD AN ADDITIONAL 75000 SHARES IN EARLY FEBRUARY FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW WHY SHOULDN'T HE TAKE A FEW CHIPS OFF THE TABLE AFTER THOSE EARLY FEBRUARY SALES MR WENNER STILL HOLDS 975963 SHARES IN THE COMPANY AND HAS OPTIONS CURRENTLY EXERCISABLE AT A PALTRY 1 A SHARE TO ACQUIRE AN ADDITIONAL 165 MILLION SHARES THE COMPANY WHICH WENT PUBLIC IN JUNE 1992 HAS 746 MILLION SHARES OUTSTANDING FOLLOWING A 3FOR2 STOCK SPLIT LATE LAST MONTH I'VE SOLD SOME STOCK BECAUSE I'VE NEVER HAD ANY MONEY IN MY LIFE AND THE TIMING WAS RIGHT HE SAYS I BOUGHT A SECOND HOME IN HAWAII AND BOUGHT MY FOLKS A HOUSE I ALSO SUPPORT SEVERAL NONPROFIT ENVIRONMENTAL GROUPS THE QUESTION FOR OUTSIDE INVESTORS IS CAN THEY GET EXCITED ABOUT THIS HIGHFLYING STOCK IN THE WAKE OF ITS ALREADY HUGE RUNUP AND AMID THE JITTERY SMALLSTOCK MARKET INDEED THE STOCK IS TRADING AT A MULTIPLE OF JUST UNDER 150 TIMES TRAILING 12MONTH EARNINGS BECAUSE OF THE ENORMOUS MOVE THE STOCK HAS MADE IN THE LAST COUPLE OF MONTHS I'D BE LEERY ABOUT STEPPING IN AT THESE LEVELS REAL AGGRESSIVELY SAYS ROBERT TOOMEY AN ANALYST WITH PIPER JAFFRAY IN SEATTLE TECHNICALLY THE STOCK HAS TO CONSOLIDATE BUT CURIOUSLY THAT DOESN'T SEEM TO HAVE IMPEDED IT FROM GOING UP MR TOOMEY SAYS HE SEES THE STOCK AS A LONGTERM BUY AND WOULD ENCOURAGE INVESTORS TO LOAD UP FOLLOWING A PULLBACK THEY'VE GOT A VERY GOOD PRODUCT IN THE GARDENBURGER I THINK THEY CAN ACHIEVE 50 ANNUAL EARNINGS GROWTH LONGTERM BASED ON FURTHER MARKET PENETRATION HE SAID THE GARDENBURGERS HE NOTES ARE ALSO BEING SOLD IN CANADA MEXICO AND EUROPE AND WERE SERVED UP AT THE JUST CONCLUDED OLYMPIC GAMES IN NORWAY THE PIPER JAFFRAY ANALYST THINKS THE COMPANY WILL REPORT EARNINGS OF A SPLITADJUSTED 19 CENTS A SHARE FOR 1993 UP SHARPLY FROM A SPLITADJUSTED 7 CENTS A SHARE IN 1992 AND THAT IT CAN ACHIEVE 30 CENTS A SHARE THIS YEAR AND 47 CENTS A SHARE IN 1995 HE EXPECTS SALES TO HAVE NEARLY DOUBLED LAST YEAR TO 131 MILLION FROM 695 MILLION IN 1992 AND TO CLIMB TO 25 MILLION THIS YEAR MR TOOMEY WHO SAYS HE EATS THE BURGER ONCE A WEEK POINTS OUT THAT THERE'S NO REAL COMPETITOR IN THE MEATLESS AND SOYLESS VEGGIEBURGER MARKET ALTHOUGH SEVERAL COMPANIES ARE OFFERING SOYBASED PRODUCTS THOSE SOY BURGERS HE ADDS DON'T SEEM TO BE CREATING MUCH OF A FOLLOWING WHOLESOME'S GARDENBURGERS ARE ACCORDING TO THE COMPANY A ZEROCHOLESTEROL BLEND OF MUSHROOMS ONIONS ROLLED OATS BROWN RICE LOWFAT CHEESES BULGUR WHEAT EGG WHITES SEASONING AND SPICES WITH ABOUT ONESIXTH THE FAT OF HAMBURGERS AND HALF THE CALORIES THEY SELL FOR ANYWHERE BETWEEN 169 AND 399 FOR A PACKAGE OF FOUR PATTIES DEPENDING ON THE REGIONAL MARKET KEVIN SKISLOCK AN ANALYST WITH DAIN BOSWORTH IN MINNEAPOLIS SAYS HE THINKS THE GROWTH STOCK STILL HAS POTENTIAL TO RISE MY CURRENT TARGET PRICE IS 35 A SHARE OVER THE NEXT SIX TO NINE MONTHS BASED ON AN 80 TO 100 RATE OF ANNUAL GROWTH HE THINKS THE COMPANY CAN POST EARNINGS OF UP TO 40 CENTS THIS YEAR AND 75 CENTS NEXT YEAR IF THE STOCK HITS HIS 1995 EARNINGS TARGET THE ISSUE WOULD THUS BE TRADING AT AROUND 32 TIMES THOSE FORWARD EARNINGS HE SAYS THE COMPANY IS GROWING ITS SAMEACCOUNTS BY 100 ANNUALLY THEY'RE AGGRESSIVELY ADDING RETAIL ACCOUNTS AND THEY HAVE STRONG REPEAT SALES HE SAYS EIGHTY PERCENT OF THIS COMPANY'S CUSTOMERS ARE NONVEGETARIANS PEOPLE ARE TRYING TO AVOID HAVING MEAT SEVEN NIGHTS A WEEK MR SKISLOCK SAYS THE STOCK COULD GET A BOOST FROM ANOTHER DIRECTION IT'S FAST BECOMING THE MOST ATTRACTIVE TAKEOVER TARGET IN THE FOOD INDUSTRY THE STOCK'S CLOSE YESTERDAY MARKED A 25CENT GAIN OVER MONDAY'S CLOSE BUT WAS 50 CENTS SHY OF ITS 52WEEK PEAK OF 2425 9403020173 940302 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF MARK D ROZELLS 32YEAROLD ASSISTANT TREASURER WAS APPOINTED TO THE ADDITIONAL TITLE OF VICE PRESIDENT OF THIS MOVIEANDTELEVISION PROGRAMMING THEMEPARKS AND CHARACTERMERCHANDISING CONCERN 9403020172 940302 WHO'S NEWS TEJAS POWER CORP TEJAS POWER CORP HOUSTON JOHN A STROM FORMERLY SENIOR VICE PRESIDENT WAS NAMED PRESIDENT OF THIS NATURALGAS GATHERING AND MARKETING COMPANY MR STROM 40 YEARS OLD SUCCEEDS LARRY W BICKLE 48 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9403020171 940302 WHO'S NEWS PRAXAIR INC PRAXAIR INC DANBURY CONN NIGEL D MUIR 49 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT COMMUNICATIONS AT THIS SUPPLIER OF INDUSTRIAL GASES MR NUIR PREVIOUSLY HEADED PUBLIC RELATIONS AT BRITISH PETROLEUM CO 9403020170 940302 TIME WARNER DELAYS LAUNCH OF TV SERVICE TRIAL INTERACTIVE NETWORK IN ORLANDO IS SET BACK BY PROBLEMS AT 2 FIRMS BY MARK ROBICHAUX AND DON CLARK STAFF REPORTERS OF THE WALL STREET JOURNAL IN A SETBACK TO ITS AMBITIOUS PLANS TO LEAD THE CABLE INDUSTRY ONTO THE INFORMATION SUPERHIGHWAY TIME WARNER INC SAID IT WILL DELAY THE LAUNCH OF ITS FULLSERVICE NETWORK IN ORLANDO SEVERAL MONTHS BECAUSE OF HOLDUPS CAUSED BY EQUIPMENT MAKERS SILICON GRAPHICS INC AND SCIENTIFICATLANTA INC THE DELAY FOR THE ORLANDO PROJECT THE MOST AGGRESSIVE INTERACTIVE TV TRIAL TO DATE COMES JUST DAYS AFTER THE FEDERAL GOVERNMENT ORDERED A NEW ROUND OF CUTS IN CABLE RATES AND FOLLOWS THE COLLAPSE OF THE MERGER BETWEEN TELECOMMUNICATIONS INC AND BELL ATLANTIC CORP TIME WARNER NOW SAYS IT WILL LAUNCH THE ADVANCED NETWORK BY THE FOURTH QUARTER INSTEAD OF IN APRIL AS ORIGINALLY SCHEDULED BUT THE DELAY SUGGESTS CABLE AND TELEPHONE COMPANIES WILL TAKE FAR LONGER THAN EXPECTED TO COMPLETE THE STAGGERING HARDWARE BUILDUP NECESSARY FOR SUCH SERVICES TIME WARNER WHICH CONTROLS THE NATION'S SECONDLARGEST CABLE SYSTEM SERVING 72 MILLION CUSTOMERS SAYS IT STILL PLANS TO HOOK UP 4000 CUSTOMERS ON THE ORLANDO NETWORK BY YEAR END BY THEN VIEWERS WILL HAVE ACCESS TO VIDEO GAMES INTERACTIVE SHOPPING AND VIDEOONDEMAND SERVICES WHICH WILL HAVE VCRLIKE FUNCTIONS SUCH AS PAUSE REWIND AND FAST FORWARD THE ENTERTAINMENT GIANT TRIED TO SHED A POSITIVE LIGHT ON THE DELAYS EMPHASIZING THE BENEFIT TO TV VIEWERS WE DON'T WANT THE DEVELOPMENT PROCESS TO BE DRIVEN BY AN ARTIFICIAL DEADLINE SAID A TIME WARNER SPOKESMAN WE WANT TO DELIVER THE BEST PRODUCT FOR CUSTOMERS TIME WARNER SAID THE EXTRA TIME WILL ALLOW ADDITIONAL REFINEMENTS OF THE NETWORK'S COMPONENTS SILICON GRAPHICS BASED IN MOUNTAIN VIEW CALIF WAS CONTRACTED TO DESIGN THE OPERATING SOFTWARE WHICH MANAGES AND INTEGRATES THE ELEMENTS OF THE NETWORK AS WELL AS VIDEO SERVERS WHICH STORE AND DELIVER DIGITAL INFORMATION SILICON GRAPHICS WILL ALSO MAKE THE POWERFUL MICROPROCESSOR CHIPS TO BE USED IN SETTOP CONVERTERS BUILT BY SCIENTIFICATLANTA FOR THE ORLANDO SYSTEM SILICON GRAPHICS' PROBLEMS IN MEETING DEADLINES IN ORLANDO HAD BEEN WIDELY RUMORED FOR SEVERAL WEEKS THOUGH ITS EXECUTIVES HAD REPEATEDLY SAID THE PROJECT WAS PROGRESSING AS PLANNED IN PARTICULAR SILICON GRAPHICS HAS LITTLE EXPERIENCE IN DESIGNING THE SORT OF SOFTWARE THAT WILL SERVE AS USERS' NAVIGATOR THROUGH THE NEW PROGRAMMING OPTIONS EDWARD MCCRACKEN SILICON GRAPHICS' CHIEF EXECUTIVE OFFICER CONCEDED THAT HIS COMPANY'S BIGGEST PROBLEM IS DESIGNING THIS INTERFACE IN A WAY THAT IS VISUALLY STRIKING YET EASY TO UNDERSTAND AND USE WE WANT TO HAVE SOMETHING THAT THE CONSUMER REALLY WANTS MR MCCRACKEN SAID SILICON GRAPHICS BEGAN WORK ON THE PROJECT IN MAY 1993 AND DEMONSTRATED ITS FEASIBILITY IN DECEMBER THE COMPANY HAS 50 TO 100 ENGINEERS PUTTING IN LONG HOURS MR MCCRACKEN SAID AS THE APRIL 1 DEADLINE APPROACHED IT BECAME APPARENT THAT THEY NEEDED MORE TIME HE SAID SILICON GRAPHICS AND SCIENTIFICATLANTA STRESSED THE DIFFICULT TASK OF COMBINING COMPUTER AND CABLE TECHNOLOGIES IT'S NOT ANY ONE PARTNER HAVING PROBLEMS SAID BILL LUEHRS VICE PRESIDENT OF SUBSCRIBER DEVELOPMENT AT SCIENTIFICATLANTA BASED IN ATLANTA IT'S THE PROCESS OF GETTING ALL THESE PIECES INTEGRATED IT'S MORE COMPLEX THAN ANYTHING WE'VE EVER DELIVERED TO CUSTOMERS BEFORE THIS IS NOT A TRIVIAL PROCESS JESSICA REIF AN ANALYST WITH OPPENHEIMER & CO SAID THE DELAY IS NOT SURPRISING GIVEN THE MAGNITUDE OF WHAT THEY'RE TRYING TO DO MS REIF PREDICTS SUCH TECHNOLOGICAL DELAYS WILL CONTINUE INDUSTRYWIDE AND POINTED OUT THAT SUCH HOLDUPS ALSO SLOW THE CASHFLOW GROWTH EXPECTED FROM NEW INTERACTIVE OFFERINGS LAST MONTH THE NATION'S LARGEST CABLE OPERATOR TELECOMMUNICATIONS SAID ITS PLANNED PURCHASE OF A MILLION ADVANCED SETTOP CONVERTERS IN EARLY 1994 FROM GENERAL INSTRUMENT CORP WOULD BE DELAYED BY NEARLY A YEAR BECAUSE INDUSTRY STANDARDS HADN'T BEEN COMPLETELY SET BUT GENERAL INSTRUMENT SAID AFTER THAT ANNOUNCEMENT THAT THE TWO COMPANIES HAD BEEN OPERATING UNDER THE REVISED SCHEDULE SINCE LAST FALL 9403020169 940302 POLITICAL TREADMILL FOR CALIFORNIA SENATOR FUND RAISING BECOMES OVERWHELMING BURDEN IT CONSUMES FEINSTEIN'S TIME AND FORCES HER TO RELY UPON SPECIAL INTERESTS THE CAMPAIGN AS CORPORATION BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE TYPICAL US SENATOR COUNTS ON RAISING SOME 12000 A WEEK TOWARD REELECTION DIANNE FEINSTEIN NEEDS 22000 A DAY IN BREAKFAST HUDDLES WITH WASHINGTON LOBBYISTS STREETCORNER CALLS BY CELLULAR TELEPHONE AND COZY RECEPTIONS AT THE HOMES OF THE WELLTODO THE CALIFORNIA DEMOCRAT SCOURS THE NATION FOR THE 10 MILLION OR MORE SHE WILL NEED THIS YEAR TO DEFEND THE SEAT SHE WON ONLY 16 MONTHS AGO THAT'S ON TOP OF THE NEARLY 30 MILLION SHE HAS SPENT SINCE 1990 ON A FAILED BID FOR THE CALIFORNIA GOVERNORSHIP AND THE CAMPAIGN FOR HER CURRENT ABBREVIATED SENATE TERM YOU HAVE TO SET UP YOUR OWN CORPORATION SAYS THE WEARY SENATOR HER BURDEN IS ALL THE GREATER SINCE SHE HAS JUST TWO YEARS NOT THE USUAL SIX TO RAISE MONEY BUT HER CAMPAIGN'S WEEKLY CASHFLOW REPORTS ARE UNDENIABLY ROBUST IF FEINSTEIN INC WERE A BUSINESS ITS PROJECTED REVENUE WOULD PLACE IT AMONG THE TOP 5 OF US CORPORATIONS AS CONGRESS AGAIN GRAPPLES WITH THE ISSUE OF CAMPAIGNFINANCE REFORM MRS FEINSTEIN'S PREDICAMENT STARKLY DEMONSTRATES EVERYTHING THAT CRITICS INCLUDING THE SENATOR HERSELF FIND WRONG WITH THE CURRENT SYSTEM IT DIVERTS LARGE CHUNKS OF MRS FEINSTEIN'S TIME FROM SENATE BUSINESS JUST AS SHE IS TRYING TO DELIVER FOR ECONOMICALLY SQUEEZED CONSTITUENTS AFTER YEARS OF CAMPAIGNING IT FORCES HER TO DEPEND ON SPECIALINTEREST CONTRIBUTIONS THUS FUELING OPPOSITION ATTACKS THAT FURTHER ERODE PUBLIC CONFIDENCE IN GOVERNMENT AND IT SQUEEZES OUT POTENTIAL COMPETITORS WHO CAN'T KEEP THE FINANCIAL PACE FRESHMAN GOP REP MICHAEL HUFFINGTON HAS EMERGED AS MRS FEINSTEIN'S LIKELY NOVEMBER OPPONENT FOR ONE OVERRIDING REASON HIS WILLINGNESS TO TAP HIS PERSONAL FORTUNE ESTIMATED BY THE CAPITOL HILL NEWSPAPER ROLL CALL AT 75 MILLION TO SHORTCIRCUIT THE FUNDRAISING GRIND THUS CALIFORNIA VOTERS FACE THE SPECTACLE OF THE WEALTHY MRS FEINSTEIN WHO WITH HER INVESTMENTBANKER HUSBAND IS WORTH AN ESTIMATED 50 MILLION ACCORDING TO ROLL CALL COMPLAINING THAT HER OPPONENT WANTS TO BUY THE ELECTION MRS FEINSTEIN SAYS SHE DOESN'T PLAN TO PUT MUCH IF ANY OF HER OWN MONEY INTO HER CAMPAIGN THOUGH SHE USED FAMILY WEALTH TO HELP OBTAIN SOME 3 MILLION IN BANK LOANS FOR HER 1990 GOVERNOR'S RACE IT IS TERRIBLE SAYS FELLOW CALIFORNIAN ALAN CRANSTON A MASTER FUNDRAISER DURING HIS FOUR SENATE TERMS VIRTUALLY ALL YOUR CAMPAIGN TIME IS SPENT RAISING MONEY ULTIMATELY THE PROCESS CONSUMED MR CRANSTON WHO RETIRED IN 1992 IN THE WAKE OF THE KEATING FIVE INFLUENCEBUYING SCANDAL GRANTED CALIFORNIA IS THE MOST EXPENSIVE STATE IN THE COUNTRY FOR POLITICAL CAMPAIGNS STILL THE SYSTEM'S INEXORABLE LOGIC REQUIRING VAST SUMS TO REACH VOTERS THROUGH TELEVISION ADVERTISING PLACES MOST NATIONAL POLITICIANS ON THE SAME FINANCIAL TREADMILL MRS FEINSTEIN'S FUNDRAISING GURU PRISCILLA BURTON IS A PROTEGE OF FORMER CRANSTON OPERATIVE JOY JACOBSON AND WHILE THERE HAS NEVER BEEN A HINT OF SCANDAL INVOLVING MRS FEINSTEIN AIDES AND CONTRIBUTORS ACKNOWLEDGE THAT THE SYSTEM PROVIDES PRECIOUS ACCESS TO THE SENATOR FOR THOSE WHO CAN AFFORD IT FOR DONORS AS WELL AS CANDIDATES THE CAMPAIGNFINANCE SYSTEM HAS BECOME A QUASICORPORATE PROCESS SAYS JOE SCOTT A POLITICAL CONSULTANT WHO RECENTLY WORKED IN THE CAMPAIGN OF LOS ANGELES MAYOR RICHARD RIORDAN THE BIG CONTRIBUTORS BECOME THE MAJOR SHAREHOLDERS THE REST OF THE POPULATION IS LEFT JUST TO VOTE TO AFFIRM THE MANAGEMENT AMONG THOSE WITH THE BIGGEST STAKES IN MRS FEINSTEIN'S 1992 CAMPAIGN EXECUTIVES FROM THE ENTERTAINMENT LEGAL FINANCE AND REALESTATE INDUSTRIES IT IS A PROCESS THAT PARTICIPANTS THEMSELVES HAVE COME TO DREAD MY PEOPLE WANT ME TO BE ON THE PHONE ALL THE TIME MRS FEINSTEIN SAYS AMID A HECTIC DAILY SCHEDULE THAT ISN'T EASY SINCE RULES PROHIBIT FUND RAISING WITHIN THE CAPITOL AND SENATE OFFICES SHE MUST STEP OUTSIDE WITH HER POCKET PHONE TO DIAL UP CONTRIBUTORS MRS FEINSTEIN RESERVES FRIDAY AFTERNOONS WHEN THE SENATE OFTEN ISN'T IN SESSION FOR MAKING CALLS FROM HER HOME EVEN SO SHE STILL FEELS UNCOMFORTABLE ASKING PEOPLE FOR MONEY I'LL START TO SWEAT SAYS THE SENATOR WHO HOPES BENEFACTORS RAISE THE SUBJECT FIRST BUT FACING TV AD COSTS OF 700000 OR MORE EACH WEEK IN THE CAMPAIGN'S HOME STRETCH THE FORMER SAN FRANCISCO MAYOR CAN'T HELP BUT MAKE FUND RAISING A TOP PRIORITY SHE PAYS CAMPAIGN FUNDRAISER BURTON 10000 A MONTH MORE THAN ANYONE ON HER SENATE STAFF RECORDS SHOW SHE EMPLOYED AT LEAST FIVE OTHER FUNDRAISING CONSULTANTS OR STAFFERS IN 1993 MRS FEINSTEIN RETURNED TO FUND RAISING WITHIN DAYS OF WINNING GOV PETE WILSON'S UNEXPIRED SENATE TERM IN NOVEMBER 1992 SHE FLEW LATE THAT MONTH TO SOUTH FLORIDA FOR A COUPLE OF GATHERINGS THAT RAISED A TOTAL OF 50000 BUSINESS EXECUTIVE MONTE FRIEDKIN WHO SUPPORTS PROISRAEL DEMOCRATS AND HOSTED A RECEPTION FOR MRS FEINSTEIN SAYS POLITICIANS' REQUESTS FOR FINANCIAL HELP HAVE BECOME ALMOST AN HOURLY OCCURRENCE ON THE DAY THE 103RD CONGRESS CONVENED IN JANUARY LAST YEAR MRS FEINSTEIN ATTENDED A 100ANDUP RECEPTION FOR THE DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE OR DSCC THE NEXT MONTH HER CAMPAIGN CHAIRMAN DUANE GARRETT AN AMIABLE SAN FRANCISCO LAWYER AUCTIONEER RADIO HOST AND LONGTIME FUNDRAISER PUT ON A BASH AT HIS HOME THAT YIELDED 100000 EVEN MRS FEINSTEIN'S JUNE BIRTHDAY BECAME A FUNDRAISING VEHICLE AS THE CAMPAIGN RAISED 300000 APIECE AT EVENTS IN LOS ANGELES AND SAN FRANCISCO FEINSTEIN INC GENERATES ADDITIONAL REVENUE IN SMALL DOSES THROUGH TELEMARKETING AND DIRECT MAIL THOUGH THE SENATOR MINIMIZES USE OF THE LATTER FINDING IT TOO IMPERSONAL THREE PERSONAL COMPUTERS TRACK INCOMING CHECKS CAPITALIZING ON HER CACHET AS ONE OF JUST SEVEN WOMEN SENATORS MRS FEINSTEIN TAPS A NETWORK OF POLITICALLY ACTIVE WOMEN IN CALIFORNIA AND BEYOND THE HOLLYWOOD WOMEN'S POLITICAL COMMITTEE MEMBERS INCLUDE 1000 FEINSTEIN DONOR ROSEANNE ARNOLD HAS MET ITS GOAL OF RAISING 50000 FOR THE 1994 CAMPAIGN AND ISN'T STOPPING KATE BARTHOLO A WALT DISNEY CO EXECUTIVE HOPES TO RAISE 100000 OR MORE FROM FRIENDS AND ASSOCIATES EMILY'S LIST WHICH BUNDLES CONTRIBUTIONS FROM ITS 25000 MEMBERS AND SENDS THEM TO SELECTED DEMOCRATIC WOMEN CANDIDATES WHO FAVOR ABORTION RIGHTS WILL BE THERE FOR HER IF NECESSARY SAYS PRESIDENT ELLEN MALCOLM THE TWO HAVE BEEN THERE FOR EACH OTHER BEFORE EMILY'S LIST SENT ALONG SOME 500000 TO MRS FEINSTEIN'S 1992 CAMPAIGN AND THE SENATOR HAS SINCE LOBBIED TO PROVIDE IT AN EXEMPTION FROM ANTIBUNDLING PROVISIONS IN PENDING CAMPAIGNREFORM LEGISLATION WASHINGTON LOBBYISTS DO THEIR PART TO HELP CASSIDY & ASSOCIATES WHICH REPRESENTS CORPORATIONS STATE AND LOCAL GOVERNMENTS AND UNIVERSITIES GENERATED SOME 10000 AT A BREAKFAST FOR MRS FEINSTEIN LAST YEAR IT'S A REGULAR THING THE FIRM DOES FOR LAWMAKERS SAYS WALLY CHALMERS EXECUTIVE VICE PRESIDENT WHEN DEMOCRATIC RAINMAKER VANCE OPPERMAN THREW A 1000AHEAD RECEPTION LAST OCTOBER AT THE MONOCLE A LOBBYISTS' HANGOUT ON CAPITOL HILL THE INVITATION UNDERSCORED THE SENATOR'S CLOUT MEMBER APPROPRIATIONS JUDICIARY RULES AND ADMINISTRATION OPPERMAN ASSOCIATE ALLEN JOHNSON SAYS MRS FEINSTEIN A LONGTIME FRIEND MAINTAINS A FIRE WALL BETWEEN CONTRIBUTORS AND POLICY DECISIONS BUT ACCESS TO THE SENATOR IS ANOTHER MATTER THEY DO HAVE THE OPPORTUNITY TO SPEND TIME WITH HER HE ACKNOWLEDGES EVEN POWERFUL HOMESTATE INTERESTS FEEL THE NEED TO ANTE UP HAVING BACKED MRS FEINSTEIN'S REPUBLICAN OPPONENT IN 1992 CALIFORNIA AGRIBUSINESS CONCERNS SOUGHT TO SMOOTH RELATIONS WITH MRS FEINSTEIN BY ARRANGING A 50000 FUNDRAISER IN MODESTO A FEW WEEKS AFTER SHE TOOK OFFICE WE JUST WANTED HER TO UNDERSTAND OUR NEEDS EXPLAINS BOB VICE PRESIDENT OF THE CALIFORNIA FARM BUREAU IT MAKES IT EASIER TO HAVE A CONVERSATION RATHER THAN CALLING COLD THAT'S WHY INCUMBENTS RAKE IN MORE THAN 70 OF THE MONEY DOLED OUT BY POLITICALACTION COMMITTEES WHICH CAN GIVE CANDIDATES 5000 EACH FOR THEIR PRIMARY AND GENERALELECTION RACES AT THE SAME TIME SOME SPECIAL INTERESTS CAN BE QUITE DIRECT IN PRESSURING INCUMBENTS AND THEIR AIDES FUNDRAISING CONSULTANT TERRES UNSOELD WHO HAS WORKED FOR MRS FEINSTEIN AND OTHER WOMEN CANDIDATES INCLUDING HER MOTHER DEMOCRATIC REP JOLENE UNSOELD RECALLS HOW SOME POLITICALACTION COMMITTEES LAST YEAR DECLINED REQUESTS FOR CONTRIBUTIONS UNTIL AFTER FENCESITTERS HAD COMMITTED THEMSELVES ON THE NORTH AMERICAN FREE TRADE AGREEMENT THE DANCE BETWEEN RAISING MONEY AND TRYING TO BE ETHICAL IS A FINE LINE SAYS THE CONSULTANT WHO FAVORS REFORM THAT WOULD REPLACE THE CURRENT CAMPAIGNFINANCING SYSTEM WITH PUBLIC FINANCING WHEN YOU'RE ASKING FOR 10000 FROM A POLITICAL ORGANIZATION AND THEN YOU'RE MEETING WITH THEM IN YOUR OFFICE TO DISCUSS LEGISLATION THAT'S A TRICKY SITUATION THAT'S JUST NOT RIGHT SHE SAYS LIKE OTHER CURRENT AND FORMER FEINSTEIN AIDES MS UNSOELD SAYS THAT THE SENATOR'S INTEGRITY IS BEYOND QUESTION AND THAT FUND RAISING IS ONLY ONE OF MANY OFTEN CONFLICTING POLITICAL PRESSURES WEIGHING ON CANDIDATES YET MONEY PRESSURES ARE SO GREAT IN LARGESTATE RACES THAT LAWMAKERS FIND ENORMOUS INCENTIVES TO RATIONALIZE ASSISTING CONTRIBUTORS ON GROUNDS OF POLICY OR CONSTITUENT SERVICE YOU'RE CONSTANTLY THINKING ABOUT YOUR WEEKLY OR DAILY OR MONTHLY TARGETS SAYS DEMOCRATIC REP ROBERT MATSUI WHO BRIEFLY CAMPAIGNED FOR A CALIFORNIA SENATE SEAT IN 1991 BEFORE DROPPING OUT TO DEVOTE MORE ATTENTION TO HIS ILL FATHER MR MATSUI PLAYED A HIGHPROFILE ROLE ON BEHALF OF NAFTA BUT HAD HE REMAINED IN THE DEMOCRATIC SENATE PRIMARY WHERE LABOR MONEY AND VOTES ARE CRUCIAL IT WOULD HAVE BEEN VERY EASY TO SAY WHY SHOULD I WORRY ABOUT THIS' BECAUSE HIS CAMPAIGN WAS SO BRIEF MR MATSUI ADDS I NEVER GOT A CHANCE TO TEST MY INTEGRITY MR HUFFINGTON SEN FEINSTEIN'S LIKELY OPPONENT THIS FALL HOPES TO USE THE ISSUE OF SPECIALINTEREST MONEY TO TEST HERS IT BUYS INFLUENCE SAYS MR HUFFINGTON CALLING MRS FEINSTEIN'S VOTE AGAINST NAFTA A PAYBACK FOR MORE THAN 2 MILLION IN LABOR CONTRIBUTIONS IN WINNING HIS HOUSE SEAT MR HUFFINGTON GOT AROUND THE PROBLEM BY SPENDING 5 MILLION OF HIS OWN MONEY AND CALIFORNIA POLITICAL OPERATIVES IN BOTH PARTIES BELIEVE HE IS PREPARED TO POUR 20 MILLION OR MORE INTO A RACE AGAINST MRS FEINSTEIN MR HUFFINGTON CALLS THAT PURE FABRICATION AND SAYS HE WILL RAISE OUTSIDE MONEY TOO BUT HE BOASTS I CAN'T BE BOUGHT MRS FEINSTEIN NOTING HER LONGSTANDING RESERVATIONS ABOUT NAFTA SAYS THE ARRAY OF ORGANIZED INTERESTS IN CALIFORNIA ENSURES THAT SHE COMES UNDER NO UNDUE PRESSURE FROM ANY PARTICULAR GROUP NOR DOES THE CENTRIST DEMOCRAT WORRY THAT TIME SPENT WITH LARGE DONORS SKEWS HER PERSPECTIVE IN FAVOR OF THE AFFLUENT THEY CAN'T CONTRIBUTE A LOT SHE SAYS YET THE 4000 THAT WELLTODO COUPLES CAN GIVE 1000 APIECE FOR BOTH PRIMARY AND GENERAL ELECTIONS IS MORE THAN A MONTH'S INCOME FOR THE AVERAGE CALIFORNIA FAMILY SOME CALIFORNIA POLITICIANS ARGUE THAT THE FUNDRAISING CIRCUIT IS BETTER THAN NOTHING A LAST FACETOFACE LINK WITH SPRAWLING CONSTITUENCIES THAT OTHERWISE KNOW LAWMAKERS ALMOST ENTIRELY THROUGH TELEVISION FREED UP FROM FUND RAISING THROUGH PUBLIC FINANCING CANDIDATES WOULD HAVE NOTHING TO DO WITH LITTLE PEOPLE SAYS REPUBLICAN REP CHRISTOPHER COX WHO SHIED AWAY FROM THIS YEAR'S SENATE RACE BECAUSE OF THE PROSPECT OF EXPENSIVE BATTLES AGAINST MR HUFFINGTON AND MRS FEINSTEIN CANDIDATES AREN'T LIKELY TO BE FREED FROM FUND RAISING ANYTIME SOON SANDWICHED BETWEEN CONFLICTING PUBLIC ATTITUDES DISTRUST OF THE CURRENT SYSTEM AND UNWILLINGNESS TO PAY MORE TAXES TO FINANCE CAMPAIGNS CONGRESS IS STRUGGLING TO FIND A MIDDLE GROUND WITH PRODDING FROM PRESIDENT CLINTON THE HOUSE AND SENATE HAVE PASSED DIFFERING REFORM BILLS THAT WOULD LIMIT SPENDING BUT NEITHER IDENTIFIES A WAY TO SUBSTANTIALLY REPLACE PRIVATE DONATIONS WITH PUBLIC MONEY NEGOTIATIONS BEGIN SOON ON A COMPROMISE BILL THE MAINE DEMOCRAT IS OFTEN PESTERED BY COLLEAGUES WHO DON'T WANT FLOOR VOTES TO CONFLICT WITH FUNDRAISERS AND SOMETIMES OBLIGES THEM AS THE SENATE CONSIDERED CRIME LEGISLATION LAST NOV 8 FOR EXAMPLE THE DEMOCRATIC LEADER ARRANGED A WINDOW FOR MRS FEINSTEIN AND OTHER PARTY MEMBERS TO ATTEND A 250AHEAD DSCC GALA THAT EVENING SENATORS CAN'T ALWAYS BE ACCOMMODATED AS THE SENATE CHURNED TOWARD ADJOURNMENT LAST NOV 20 WITH DEBATES OVER NAFTA AND THE BRADY GUNCONTROL BILL MRS FEINSTEIN FACED THE ADDED PRESSURE OF MAKING A FUNDRAISING DINNER THAT WOULD YIELD 700000 IN SAN FRANCISCO THAT EVENING THE STAR ATTRACTION FOR THE 1000APLATE AFFAIR PRESIDENT CLINTON WHEN THE SENATE WRAPPED UP BUSINESS THAT EVENING MRS FEINSTEIN RACED TO WASHINGTON NATIONAL AIRPORT AND HOPPED ON A CHARTERED JET FOR THE WEST COAST EXHAUSTED SHE DASHED INTO THE FAIRMONT HOTEL JUST AFTER 11 PM IN TIME TO CATCH MR CLINTON AND A LINGERING GROUP OF 5000 CONTRIBUTORS TO THE DSCC IT'S A BRUTAL SYSTEM SAYS BOB BURKETT A LOS ANGELESBASED DEMOCRATIC FUNDRAISER AND FEINSTEIN ADVISER WHO WAS ON HAND LAMENTING THE WEAR AND TEAR ON HER BODY HE ADDS IT'S TIME WHEN YOU NEED TO BE RELAXING OR READING OR DOING SOMETHING ELSE TO BE SURE CONFLICTS BETWEEN OFFICIAL DUTIES AND CAMPAIGN MONEY DON'T ALWAYS HURT THE LOS ANGELES EARTHQUAKE FORCED MRS FEINSTEIN TO CANCEL SOME SCHEDULED FUNDRAISERS BUT IT ISN'T LIKELY TO BE A FINANCIAL DISASTER FOR HER CAMPAIGN HER VISIBILITY AND FORCEFULNESS DURING THE CRISIS UNDOUBTEDLY IMPRESSED SOME POTENTIAL GIVERS THE FEINSTEIN TEAM IS DOING EVERYTHING THEY CAN TO CAPITALIZE OBSERVES PAUL EQUALE A WASHINGTON LOBBYIST FOR THE INDEPENDENT INSURANCE AGENTS OF AMERICA TURNING CHALLENGES INTO OPPORTUNITIES 9403020168 940302 GANNETT TO BUY SITE IN VIRGINIA ARLINGTON VA GANNETT CO SAID IT SIGNED AN AGREEMENT TO BUY 30 ACRES OF LAND IN FAIRFAX COUNTY VA FOR POSSIBLE USE AS A NEW SITE FOR ITS CORPORATE HEADQUARTERS AND OTHER OPERATIONS THE MEDIA COMPANY IS BASED IN LEASED BUILDINGS IN ROSSLYN VA WHERE ITS USA TODAY NEWSPAPER HAS ITS HEADQUARTERS 9403020167 940302 WHO'S NEWS DIAMOND SHAMROCK INC DIAMOND SHAMROCK INC SAN ANTONIO W H CLARK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NALCO CHEMICAL CO WAS ELECTED A DIRECTOR OF THIS PETROLEUM REFINING AND MARKETING COMPANY MR CLARK 61 YEARS OLD SUCCEEDS WILLIAM MCCONNOR 74 WHO IS RETIRING 9403020166 940302 WHO'S NEWS COMPTEK RESEARCH INC COMPTEK RESEARCH INC BUFFALO NY FRANK J PERPIGLIA 54 YEARS OLD FORMERLY SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE SWITCH PRODUCTS DIVISION OF DCS COMMUNICATIONS CORP WAS NAMED PRESIDENT OF THIS COMPANY'S COMPTEK TELECOMMUNICATIONS INC UNIT HE SUCCEEDS WILLIAM T LENNON WHO RETIRED IN AUGUST 9403020165 940302 INTERNATIONAL JAPAN'S VEHICLE SALES DROP TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS FELL 84 IN FEBRUARY FROM THE YEAREARLIER MONTH TO 386523 UNITS THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID FEBRUARY'S DECLINE IN THE OVERALL SALES WHICH FOLLOWED DROPS OF 6 IN JANUARY AND 11 IN DECEMBER WAS THE 11TH STRAIGHT FALL ON THE YEARONYEAR BASIS 9403020164 940302 WHO'S NEWS COMPUTERVISION CORP COMPUTERVISION CORP BEDFORD MASS JOSEPH F PESCE WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS COMPUTER SOFTWARE AND SERVICES CONCERN HE SUCCEEDS HARVEY A WAGNER WHO WILL LEAVE THE COMPANY AT THE END OF APRIL THE COMPANY SAID HE COULDN'T BE REACHED TO COMMENT MR PESCE WAS CONTROLLER AND TREASURER 9403020163 940302 WHO'S NEWS VISTA RESOURCES INC VISTA RESOURCES INC ATLANTA JOHN J HUNTZ 43 YEARS OLD WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT FOR CORPORATE DEVELOPMENT BEFORE JOINING VISTA WHICH HAS OPERATIONS IN LEATHER TANNING AND PROPERTY/CASUALTY INSURANCE MR HUNTZ WAS MANAGING PARTNER OF NOBLE VENTURES INTERNATIONAL A VENTURE INVESTMENT FIRM 9403020162 940302 BOMBAY CO POSTS SALES GAINS FORT WORTH TEXAS BOMBAY CO SAID ITS SALES FOR THE FOUR WEEKS ENDED SUNDAY ROSE 37 TO 213 MILLION FROM 155 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR ROSE 14 FOR THE LATEST 34 WEEKS SALES CLIMBED 42 TO 2173 MILLION FROM 1526 MILLION SAMESTORE SALES ROSE 22 9403020161 940302 WHO'S NEWS COMPAQ COMPUTER CORP COMPAQ COMPUTER CORP HOUSTON JOHN W WHITE WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THIS PERSONALCOMPUTER COMPANY MR WHITE 56 YEARS OLD FORMERLY WAS PRESIDENT OF THE INFORMATIONTECHNOLOGY GROUP AT TEXAS INSTRUMENTS INC DALLAS AT COMPAQ MR WHITE WILL REPORT TO ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE OFFICER AND WILL OVERSEE THE COMPANY'S MANAGEMENT INFORMATION SYSTEMS OPERATIONS 9403020160 940302 WHO'S NEWS BORDEN INC BORDEN INC NEW YORK JOHN E SEXTON DEAN OF THE NEW YORK UNIVERSITY SCHOOL OF LAW WAS ELECTED TO THE BOARD OF THIS FOOD AND CHEMICALS COMPANY THE ELECTION OF MR SEXTON 51 YEARS OLD INCREASES THE BOARD TO EIGHT MEMBERS FOLLOWING THE RESIGNATIONS IN DECEMBER OF ANTHONY S D'AMATO THE FORMER CHIEF EXECUTIVE AND ROMEO J VENTRES MR D'AMATO'S PREDECESSOR AS CEO 9403020159 940302 WHO'S NEWS PROCTER & GAMBLE CO PROCTER & GAMBLE CO CINCINNATI JOHN A SAXTON 45 YEARS OLD VICE PRESIDENT COSMETIC AND FRAGRANCE PRODUCTS WAS NAMED VICE PRESIDENT NATIONAL GOVERNMENT RELATIONS FOR THE COMPANY AS OF APRIL 4 MR SAXTON WHO HAS BEEN WITH P&G SINCE 1971 WILL SUCCEED R MARVIN WOMACK 58 WHO WILL RETIRE JULY 1 AFTER 35 YEARS WITH P&G BETH J KAPLAN 36 CURRENTLY GENERAL MANAGER OF OLESTRA SHORTENING AND OILS WILL SUCCEED MR SAXTON 9403020158 940302 PRUDENTIAL ALSO PRESSURED BROKERS TO SELL MUTUAL FUNDS DATA SHOW BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC PUSHED SOME OF ITS BROKERS TO SELL THE FIRM'S OWN MUTUAL FUNDS NEARLY AS HARD AS ITS SOURED LIMITED PARTNERSHIPS ACCORDING TO INTERNAL BROKERAGEHOUSE DOCUMENTS IN A SEPT 26 1989 INTERNAL MEMO FOR INSTANCE A FORMER PRUDENTIAL SALES MANAGER IN ATLANTA APPEARED TO SUGGEST THAT HIS BROKERS EXCESSIVELY TRADE MUTUAL FUNDS IN THEIR CLIENTS' PORTFOLIOS GO TO YOUR ACCOUNTS AND TELL THEM HOW THE TURMOIL IN THE BOND MARKETS HAVE SET BACK MOST OF THE FUNDS THIS PRESENTS OPPORTUNITY SAYS THE MEMO BY RANDY COX THE FORMER SALES MANAGER TAKE YOUR LOSS AND SWAP THE FUNDS INTO PRUDENTIAL INTERMEDIATE INCOME FUND THE MEMO SAYS THEN WHEN YOU GET A POP IN THE MARKET FOR THESE FUNDS AND YOU GET YOUR PRINCIPAL BACK SELL THE PRUDENTIAL FUND AND MOVE ON THE MEMO ENDED WITH THE FOLLOWING MANDATE THIS MAKES SENSE DO IT THE MEMO REFLECTS A SPECIFIC ABUSE YOU'RE NOT SUPPOSED TO FLIP' MUTUAL FUNDS BUT ON A BROADER PERSPECTIVE IT WAS JUST BUSINESS AS USUAL AT PRUDENTIAL SAYS MARION SMITH II AN ATLANTA LAWYER REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL MR COX COULDN'T BE REACHED TO COMMENT PRUDENTIAL SAYS THE MEMO DIDN'T REPRESENT A COMPANYWIDE STRATEGY ON SELLING FUNDS AND THAT IT REFLECTED THE VIEWS OF JUST ONE MANAGER WHO HAS LEFT THE FIRM WE'RE NOT GOING TO SAY WE LIKE THE CONDUCT OF THAT BUT IT ISN'T INDICATIVE AT ALL OF THE FIRM'S VIEWPOINT A PRUDENTIAL SPOKESMAN SAYS IT'S A MEMO WITHIN A BRANCH WRITTEN FIVE YEARS AGO BY A MANAGER WHO HASN'T BEEN HERE SINCE 1990 THE SPOKESMAN ADDED AS FOR ANY ASSERTIONS THAT IT WAS BUSINESS AS USUAL AT PRUDENTIAL THE SPOKESMAN SAID MR COX HAD BEEN HIRED FROM ANOTHER FIRM IN 1989 HE WASN'T ONE OF OUR PEOPLE THE SPOKESMAN ADDED MORE RECENTLY FRANK GIORDANO PRUDENTIAL'S MUTUALFUND GENERAL COUNSEL APPROVED A CONTROVERSIAL INTERNAL ADVERTISEMENT THAT APPEARED TO URGE BROKERS TO FOCUS ON BUILDING COMMISSIONS IN SELLING MUTUAL FUNDS AS OPPOSED TO CATERING TO THE NEEDS OF CLIENTS THE AD DISTRIBUTED TO PRUDENTIAL BROKERS LAST YEAR SHOWED THAT BROKERS COULD EARN MORE THAN 130000 IN COMMISSIONS OVER AN 11YEAR PERIOD BY OPENING JUST FIVE NEW ACCOUNTS A MONTH IN AN OCT 4 1993 MEMO OPPOSING THE AD ANITA WHELAN PRUDENTIAL'S FUNDCOMPLIANCE DIRECTOR SAID I SPOKE TO FRANK GIORDANO TODAY REGARDING WHY HE APPROVED THE USE OF THE OPEN JUST FIVE ACCOUNTS EACH MONTH AND WATCH YOUR COMMISSIONS ADD UP' SECTION WHEN WE PREVIOUSLY AGREED THAT THIS WAS AN INAPPROPRIATE PIECE MS WHELAN DECLINED TO COMMENT ON HER MEMO PRUDENTIAL SAYS ADDITIONAL LANGUAGE WAS INCLUDED IN THE AD THAT ADEQUATELY ADDRESSED CLIENT NEEDS IN AN INTERVIEW MR GIORDANO SAID HE WAS THE ONE WHO SUGGESTED THAT THE ADDITIONAL LANGUAGE BE INSERTED WHICH READ OF COURSE THESE LONGTERM INVESTMENTS MUST CONTINUE TO MEET CLIENTS' INVESTMENT NEEDS MR GIORDANO SAID THE REFERENCE TO COMMISSIONS WAS INCLUDED TO SHOW THAT BROKERS COULD STILL MAKE MONEY EVEN WHEN CLIENTS INVESTED JUST 150 A MONTH THE IMPORT OF THIS WHOLE AD IS A VERY CONSERVATIVE SAVINGS PLAN HE SAID NOBODY IS SUGGESTING THAT THE SALES OF PRUDENTIAL'S MUTUAL FUNDS WERE TAINTED WITH THE TYPE OF FRAUD ALLEGED IN THE FIRM'S PARTNERSHIP SCANDAL WHICH HAS INCLUDED ACCUSATIONS OF KICKBACKS BY FORMER PRUDENTIAL EXECUTIVES AND THE FUNDS THEMSELVES WERE SOUND UNLIKE SOME PARTNERSHIPS INDEED THE PERFORMANCE OF PRUDENTIAL'S MUTUAL FUNDS HAS REBOUNDED RECENTLY MUCH TO THE DELIGHT OF THE BIG BROKERAGE FIRM BUT THE DISCLOSURES SHOW THAT HIGHPRESSURE SALES TACTICS AT PRUDENTIAL WEREN'T LIMITED TO PEDDLING PARTNERSHIPS THE DISCLOSURES COME AS SOME INDIVIDUAL AND INSTITUTIONAL INVESTORS HAVE FILED ARBITRATION CASES ACCUSING THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA OF CHURNING THEIR MUTUALFUND ACCOUNTS THAT IS EXCESSIVE TRADING TO GENERATE COMMISSIONS ONE SUCH CASE WAS FILED LAST YEAR AGAINST PRUDENTIAL BY A RETIREMENT TRUST OF DISTRICT 65 OF THE BUREAU OF WHOLESALE SALES REPRESENTATIVES ALONG WITH AFFILIATED PENSION FUNDS THE CASE CURRENTLY PENDING BEFORE AN ARBITRATION PANEL OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ACCUSED PRUDENTIAL AND A FORMER BROKER OF CHURNING THE PENSION FUND'S ACCOUNTPARTLY THROUGH MUTUAL FUNDS AND ALMOST DEPLETING IT IN THE PROCESS BETWEEN 1986 AND 1990 MUTUALFUND TRADING IN THE PENSIONFUND ACCOUNTS GENERATED COMMISSIONS TOTALING 882898 WITH THE FUNDS THEMSELVES LOSING A TOTAL OF ABOUT 240000 SAYS MR SMITH THE ATLANTA ATTORNEY WHO FILED THE CASE ADDS LINDA S PACER A LAWYER WORKING WITH MR SMITH AT THE ATLANTA LAW FIRM OF SMITH HOWARD & AJAX WE BELIEVE THAT OUR CLIENTS' LOSSES IN MUTUAL FUNDS WERE CONSISTENT WITH THE LOSSES IN THEIR ACCOUNTS THE PENSION FUNDS REPRESENT MORE THAN 12000 CURRENT AND FORMER WHOLESALEAPPAREL SALES REPRESENTATIVES WILLIAM L KICKLIGHTER JR THE FORMER PRUDENTIAL BROKER COULDN'T BE REACHED FOR COMMENT PRUDENTIAL DISPUTES THE ALLEGATIONS THE PENSIONFUND CASE ISN'T THE FIRST TO ACCUSE PRUDENTIAL OF CHURNING MUTUAL FUNDS IN 1991 PRUDENTIAL WAS ORDERED TO PAY 1 MILLION IN PUNITIVE DAMAGES TO AN INVESTOR WHO SAID HER BROKER EXCESSIVELY TRADED MUTUAL FUNDS IT WAS ONE OF THE LARGEST PUNITIVE DAMAGE AWARDS EVER LEVIED AGAINST A BROKERAGE FIRM THE INVESTOR A 74YEAROLD RETIRED HOUSEWIFE SAID HER PRUDENTIAL BROKER MADE FUND PURCHASES TOTALING MORE THAN 54 MILLION AND SALES OF MORE THAN 41 MILLION IN 280 SEPARATE TRANSACTIONS BETWEEN 1984 AND 1988 GENERATING MORE THAN 220000 IN COMMISSIONS AND SALES CHARGES MEANWHILE PRUDENTIAL LIKE OTHER BIG WALL STREET FIRMS AND MUTUALFUND DISTRIBUTORS HAS OFFERED A VARIETY OF NONCASH INCENTIVES TO HELP PROD BROKERS TO PUSH ITS FUNDS AMONG THEM TICKETS TO ORANGE BOWL COLLEGE FOOTBALL GAMES TIFFANY CHAMPAGNE GLASSES RUSSIAN ARMY WATCHES CAPPUCCINO/ESPRESSO MAKERS IRISH WHISKY NEW ENGLAND LOBSTER CLAMBAKES COURVOISIER COGNAC AND GODIVA CHOCOLATES ACCORDING TO A VARIETY OF INTERNAL PRUDENTIAL SALES SHEETS PRUDENTIAL NOTES THAT MOST FUND DISTRIBUTORS OFFER NONCASH INCENTIVES TO SELL VARIOUS PRODUCTS AND SAYS THE INDUCEMENTS DON'T LEAD BROKERS TO SELL ONE FUND OVER ANOTHER BROKERS SELL FUNDS WITH SOLID PERFORMANCE A PRUDENTIAL SPOKESMAN ASSERTS 9403020157 940302 MUTUAL FUNDS FUND INVESTORS START TO TURN CAUTIOUS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK MUTUALFUND SALES HIT A RECORD IN JANUARY BUT SMALL INVESTORS ARE TURNING CAUTIOUS RETREATING FROM SOME BOND MUTUAL FUNDS AND CHOOSING THE LEASTRISKY TYPES OF STOCK FUNDS THERE WAS A NOTABLE SLOWDOWN IN BUSINESS IN FEBRUARY WITH INVESTORS BEING MUCH MORE CONSERVATIVE SAID ROBERT LEO DIRECTOR OF BROKERDEALER SALES AT MASSACHUSETTS FINANCIAL SERVICES IN BOSTON IT'S NOTHING DIRE IT'S JUST A DOMINO EFFECT FROM THE RISE IN INTEREST RATES INVESTORS LAST MONTH BACKED AWAY FROM MANY LONGTERM BOND FUNDS ACCORDING TO MUTUALFUND EXECUTIVES MANY BOND INVESTORS ARE SWITCHING TO SHORTERTERM FUNDS IN JANUARY BY CONTRAST BONDFUND INFLOWS SOARED TO 109 BILLION FROM 58 BILLION IN DECEMBER A TRADE GROUP REPORTED STOCKFUND SALES IN FEBRUARY APPEAR TO HAVE BEEN SLIGHTLY LOWER THAN JANUARY'S RECORD LEVEL ACCORDING TO SEVERAL MUTUALFUND COMPANIES A RECORD 183 BILLION FLOWED INTO STOCK FUNDS IN JANUARY UP FROM 147 BILLION IN DECEMBER ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP IN JANUARY FUNDS INVESTING IN FOREIGN STOCKS PULLED IN MORE THAN HALF OF STOCKFUND SALES BUT SOME ANALYSTS REPORT A RECENT SLOWING IN THE TIDAL WAVE OF MONEY GOING ABROAD THE JANUARY CASHFLOW DATA FROM THE INVESTMENT COMPANY INSTITUTE MEASURE NEW SALES OF FUNDS COUNTING THE EFFECTS OF EXCHANGES AMONG FUNDS AND REDEMPTIONS REINVESTED DIVIDENDS AREN'T INCLUDED NEW FIGURES INCLUDED THE LATEST CASHFLOW NUMBERS INCLUDE DATA FOR THE COLLEGE RETIREMENT EQUITIES FUND CREF TOGETHER WITH THE COMPANION TEACHERS INSURANCE AND ANNUITY ASSOCIATION OR TIAA CONSTITUTES THE RETIREMENT SYSTEM FOR 5200 NONPROFIT INSTITUTIONS CREF HAS TOTAL ASSETS OF ABOUT 59 BILLION MUTUALFUND SALES ARE CLOSELY WATCHED AS AN INDICATOR OF HOW MUCH CASH IS GOING TO SUPPORT STOCK AND BOND MARKET PRICES FEBRUARY'S DROPOFF IN BOND SALES HAS SOME ANALYSTS WORRIED THAT MUTUALFUND COMPANIES MAY HAVE TO SELL MORE BONDS TO COVER REDEMPTIONS TRIGGERING FURTHER MARKET DECLINES BUT THE DROP IN BOND SALES COULD ALSO BE SEEN AS A HEALTHY CORRECTION FOR THE MARKET ACCORDING TO AVI NACHMANY AN ANALYST AT NEW YORK CONSULTING FIRM STRATEGIC INSIGHT THIS IS GOING TO BE A GRADUAL PROCESS OF INVESTORS SHIFTING TOWARD MORE RATIONALIZED INVESTING MR NACHMANY SAID EVEN THOUGH RIGHT NOW THERE ARE SO MANY DECLINES TO SOME EXTENT IT IS GOOD BECAUSE A BASELINE IS BEING ESTABLISHED INFLOWS INTO TAXABLEBOND FUNDS ARE CURRENTLY AT HALF THE LEVEL OF MIDJANUARY ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF RESEARCH FIRM IN FEBRUARY AND ESPECIALLY LAST WEEK MUNICIPALBOND FUNDS SAW OUTFLOWS IN ALL AREAS EXCEPT FOR INTERMEDIATETERM FUNDS IN FEBRUARY SOME FUND COMPANIES HAD SMALL NET OUTFLOWS IN BOND FUNDS VANGUARD GROUP OF VALLEY FORGE PA THE SECONDLARGEST MUTUALFUND COMPANY IN THE US HAD SLIGHT NET OUTFLOWS OF INVESTOR MONEY IN BOTH TAXABLE AND TAXFREE BOND FUNDS THERE WERE ALSO SOME SMALL NET OUTFLOWS IN BOND FUNDS AT BOSTONBASED SCUDDER STEVENS & CLARK INC BALTIMOREBASED T ROWE PRICE HAD MODEST OUTFLOWS IN BOND FUNDS MOSTLY DUE TO A REDEMPTION BY ONE LARGE INSTITUTIONAL SHAREHOLDER STEPHEN GIBSON A MANAGING DIRECTOR AT MARSH & MCLENNAN SECURITIES CORP'S PUTNAM INVESTMENTS SAYS SALES OF TAXABLE BOND FUNDS WERE DOWN ABOUT 45 FROM JANUARY WHILE TAXFREE BOND SALES FELL 25 BUT BOSTONBASED FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUALFUND COMPANY REPORTS THAT FEBRUARY BOND FUND SALES WERE ABOUT LEVEL WITH THE JANUARY LEVEL HOWEVER THERE WAS A CHANGE IN THE MIX OF WHERE THE MONEY IS BEING PLACED SAID NEAL LITVACK FIDELITY INVESTMENTS EXECUTIVE VICE PRESIDENT IN FEBRUARY MORE THAN 90 OF FIDELITY'S BONDFUND SALES WERE IN SHORTTERM FUNDS COMPARED WITH JANUARY WHEN TWOTHIRDS OF BONDFUNDS SALES WERE IN THE SHORTTERM AREA HE SAID THE MOVEMENT OF MORE CASH INTO MONEYMARKET FUNDS IS ANOTHER SIGN OF INVESTORS TAKING SAFETY MEASURES ANALYSTS SAY LAST WEEK THERE WAS A LARGE INFLOW INTO MONEYMARKET FUNDS FOR THE FIRST TIME IN A MONTH ACCORDING TO AMG DATA STOCKFUND SALES ALSO REFLECT INVESTOR CAUTION THERE WAS A SMALL DROP FROM JANUARY IN THE AMOUNT OF CASH MOVING INTO INTERNATIONAL FUNDS ANALYSTS SAY THERE ALSO WAS A DROPOFF IN AGGRESSIVEGROWTH FUND SALES AND A PICKUP IN SALES OF CONSERVATIVE STOCK FUNDS ACCORDING TO SEVERAL FUND COMPANIES FIDELITY'S MR LITVACK SAYS LESS THAN 25 OF FEBRUARY STOCKFUND SALES WERE OF INTERNATIONAL FUNDS COMPARED WITH 40 IN JANUARY TOTAL STOCKFUND SALES AT FIDELITY WERE ABOUT THE SAME AS IN JANUARY SO THE DIFFERENCE WAS MADE UP BY INCREASED SALES OF MORE CONSERVATIVE STOCK FUNDS SUCH AS GROWTHANDINCOME FUNDS AND ASSETALLOCATION FUNDS LIKE FIDELITY ASSET MANAGER FOREIGN STOCKFUND SALES CONTINUE TO BE STRONG AT TEMPLETON FUNDS THE FOREIGNSTOCKFUND DIVISION OF FRANKLIN RESOURCES INC EVEN THOUGH THEY ARE SLIGHTLY OFF FROM JANUARY WHICH WAS A PHENOMENAL PEAK SAID GREGORY JOHNSON A SENIOR VICE PRESIDENT AT FRANKLIN THE US WAS SLOW TO RECOGNIZE THE GLOBAL SIDE OF INVESTING HE SAYS SO THERE ARE STILL PENSION FUNDS MOVING TOWARD ALLOCATING A PERCENTAGE OF ASSETS TOWARD FOREIGN FUNDS WHICH WILL CONTINUE TO SUPPORT SALES AT VANGUARD INFLOWS INTO STOCK FUNDS WERE A LITTLE BELOW THE JANUARY LEVEL AND SALES OF INTERNATIONAL STOCK FUNDS WERE A TAD SLOWER THAN IN JANUARY SOME ANALYSTS SAY THAT ALTHOUGH MONEY KEEPS POURING INTO STOCK FUNDS FEBRUARY PROBABLY WON'T TOP JANUARY'S RECORD SCUDDER HAD ITS SECONDBIGGEST MONTH IN TERMS OF STOCKFUND SALES TRAILING ONLY JANUARY THERE IS SOME QUEASINESS IN THE US EQUITY MARKETS SAID GAVIN QUILL A VICE PRESIDENT IN MARKETING T ROWE PRICE CONTINUES TO HAVE A MAJORITY OF ITS STOCKFUND SALES IN INTERNATIONAL FUNDS THE GROUP HAD RECORD STOCKFUND SALES IN JANUARY AND WAS AHEAD OF THAT IN FEBRUARY A SPOKESMAN SAID CASH HOLDINGS AT STOCK FUNDS AMOUNTED TO 83 OF ASSETS AS JANUARY ENDED UP FROM 8 IN DECEMBER AND JUST A LITTLE HIGHER THAN 82 A YEAR BEFORE EVEN THOUGH THERE WAS A SLIGHT DIP IN FEBRUARY INVESTOR SENTIMENT CONTINUES TO BE STRONG ACCORDING TO A UNIVERSITY OF MICHIGAN INVESTOR SURVEY THE SURVEY SPONSORED BY FIDELITY INVESTMENTS SAID THERE WAS A SIGNIFICANT INCREASE IN THE INTENT TO PURCHASE STOCK FUNDS AMONG CURRENT MUTUALFUND OWNERS 9403020156 940302 SAFECO EARTHQUAKE ESTIMATE SEATTLE SAFECO CORP SAID IT EXPECTS LOSSES FROM THE JAN 17 EARTHQUAKE IN SOUTHERN CALIFORNIA TO TOTAL ABOUT 60 MILLION AFTER REINSURANCE EARLIER THE INSURANCE HOLDING COMPANY SAID ITS LOSSES WOULD TOP 50 MILLION SAFECO SAID ITS GROSS LOSSES FROM THE EARTHQUAKE WILL RANGE FROM 150 MILLION TO 175 MILLION 9403020155 940302 WHO'S NEWS BELLSOUTH CORP BELLSOUTH CORP ATLANTA THIS TELECOMMUNICATIONS HOLDING COMPANY ELECTED THREE DIRECTORS INCREASING BOARD MEMBERSHIP TO 16 THEY ARE REUBEN V ANDERSON 51YEAROLD PARTNER IN THE LAW FIRM OF PHELPS DUNBAR JAMES H BLANCHARD 52 CHAIRMAN OF SYNOVUS FINANCIAL CORP AND J HYATT BROWN 56 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF POE & BROWN INC 9403020154 940302 WHO'S NEWS ALLTRISTA CORP ALLTRISTA CORP MUNCIE IND THOMAS B CLARK 48 YEARS OLD FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF HOMECANNING PRODUCTS AS PRESIDENT HE SUCCEEDS WILLIAM L PETERSON WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND AS CHIEF OPERATING OFFICER HE SUCCEEDS JOHN H SNYDER WHO IS RETIRING 9403020153 940302 WHO'S NEWS APPLIED IMMUNE SCIENCES INC APPLIED IMMUNE SCIENCES INC SANTA CLARA CALIF JAMES G SMITH CHIEF OPERATING OFFICER OF THIS DEVELOPER OF CELLULAR AND GENETIC THERAPIES WAS NAMED TO THE ADDITIONAL TITLE OF PRESIDENT OF THE COMPANY MR SMITH 58 YEARS OLD SUCCEEDS THOMAS OKARMA WHO REMAINS CHAIRMAN CHIEF EXECUTIVE OFFICER AND CHIEF SCIENTIFIC OFFICER OF THE COMPANY 9403020152 940302 INTERNATIONAL PHONE VENTURE IS CALLED BUMPY BUT PROMISING BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HERE'S THE VERDICT ON THE WORLD'S FIRST COMMERCIAL TEST HERE OF A HOT NEW TYPE OF CELLULARPHONE TECHNOLOGY CALLED PERSONAL COMMUNICATIONS SERVICES BUMPY BUT PROMISING AMID MUCH CURIOSITY FROM THE WORLD MOBILEPHONE INDUSTRY THE NEW SERVICE CALLED MERCURY ONE2ONE WAS LAUNCHED IN SEPTEMBER BY A JOINT VENTURE OF TWO MULTINATIONAL PHONE COMPANIES ENGLEWOOD COLOBASED U S WEST INC AND BRITAIN'S CABLE & WIRELESS PLC YESTERDAY AT THE VENTURE'S FIRST PUBLIC PROGRESS REPORT EXECUTIVES SAID THE SERVICE HAD ENCOUNTERED SOME UNEXPECTED PROBLEMS BUT WAS GENERALLY DOING BETTER THAN EXPECTED FURTHERMORE IT WILL SOON BEGIN A FURTHER 130 MILLION 1932 MILLION EXPANSION OF ITS NETWORK BUSINESS GROWTH IS SIGNIFICANTLY AHEAD OF TARGET SAID RICHARD GOSWELL THE VENTURE'S MANAGING DIRECTOR AT A NEWS CONFERENCE HE DECLINED TO PROVIDE FIGURES SAYING IT MIGHT AID COMPETITORS SOME OUTSIDE ANALYSTS HAVE GUESSED THE SERVICE MAY HAVE MORE THAN 40000 SUBSCRIBERS A SMALL BUT FASTGROWING NUMBER COMPARED WITH BRITAIN'S TWO MILLION SUBSCRIBERS TO CONVENTIONAL CELLULAR SERVICES AS EVIDENCE OF SUCCESS MR GOSWELL SAID THE VENTURE HAD SHIPPED ITS ENTIRE STOCK OF MOBILE PHONES IN THE FIRST TWO WEEKS OF SERVICE BUT HE INDICATED THE VENTURE DEALT WITH A HEAVY PROPORTION OF CUSTOMERS WHO HADN'T USED A MOBILE PHONE AND WHO CONSEQUENTLY NEEDED MORE COSTLY HANDHOLDING THAN A TYPICAL CELLULARPHONE USER EXPECTS TO COPE THE VENTURE SPENT 2 MILLION EXPANDING ITS CUSTOMERSERVICE CENTER TO 160 EMPLOYEES AND OFFERED DISSATISFIED CUSTOMERS THEIR MONEY BACK MR GOSWELL CALLED THE NUMBER OF SUCH RETURNS FAIRLY LOW OVERALL MORE THAN 80 OF THE CLIENTELE REPORTS BEING VERY SATISFIED OR SATISFIED HE ADDED SUCH TIDBITS ARE LIKELY TO BE CLOSELY STUDIED BY THE MOBILEPHONE INDUSTRY WHICH IS BETTING THAT THIS TYPE OF LOWCOST MASSMARKET SERVICE WILL BECOME ITS FUTURE PERSONAL COMMUNICATIONS SERVICES IS A TERM COVERING A BROAD RANGE OF MOBILEDIGITAL TECHNOLOGIES THAT USE LIGHTER CHEAPER PHONES SMALLER TRANSMITTING CELLS AND HIGHER RADIO FREQUENCIES THAN A NORMAL CELLULARPHONE SYSTEM THE INDUSTRY'S HOPE IS THAT THE GREATER EASE OF USE AND LOWER COST WILL TURN MOBILE COMMUNICATIONS INTO AN EVERYDAY CONSUMER PURCHASE LIKE BUYING A TELEVISION SET OR A CAMERA 9403020151 940302 TWO CHANGES PLANNED IN DOW JONES INDEX NEW YORK TWO CHANGES ARE BEING MADE IN THE DOW JONES EQUITY MARKETS INDEX EFFECTIVE TODAY KEYCORP IS BEING DELETED FROM THE EASTERN REGIONAL BANKS INDUSTRY GROUP IT IS MERGING WITH SOCIETY CORP WHICH WILL REMAIN IN THE CENTRAL REGIONAL BANKS INDUSTRY GROUP BUT IS CHANGING ITS NAME TO KEYCORP RAYONIER TIMBERLANDS LP IS BEING ADDED TO THE FORESTPRODUCTS INDUSTRY GROUP THE COMPANY WAS SPUN OFF FROM ITT CORP RAYONIER INC IS BEING ADDED TO THE FORESTPRODUCTS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX NOT ITS SUBSIDIARY RAYONIER TIMBERLANDS LP AS ERRONEOUSLY REPORTED IN AN ARTICLE YESTERDAY 9403020150 940302 MAGAININ PRIVATE PLACEMENT PLYMOUTH MEETING PA MAGAININ PHARMACEUTICALS INC SAID IT EXPECTS TO RAISE ABOUT 154 MILLION THROUGH A PRIVATE PLACEMENT TO FUND CLINICAL TRIALS RESEARCH AND DEVELOPMENT AND OTHER PROJECTS THE COMPANY WHICH DEVELOPS ANTIINFECTIVE AND ANTICANCER DRUGS BASED ON COMPOUNDS ISOLATED FROM ANIMALS SAID IT MADE A PRIVATE PLACEMENT OF 11 MILLION SHARES AT A PRICE OF 14 A SHARE THE PRIVATE PLACEMENT IS CONDITIONED ON THE FILING OF A REGISTRATION STATEMENT AND WAS ARRANGED BY HAMBRECHT & QUIST INC AND SG WARBURG & CO 9403020149 940302 CREDIT RATINGS FOURTH FINANCIAL CORP WICHITA KAN STANDARD & POOR'S CORP UPGRADED THE COMPANY'S PREFERRED STOCK TO TRIPLEBMINUS FROM DOUBLEBPLUS AND THE COMPANY'S BANK IV KANSAS UNIT'S LONGTERM UNINSURED CERTIFICATES OF DEPOSIT TO SINGLEAMINUS/A2 FROM TRIPLEBPLUS/A2 S&P SAID THE UPGRADES REFLECT THE BANK HOLDING COMPANY'S STRONG CAPITALIZATION AND LIQUIDITY AND IMPROVED EARNINGS PERFORMANCE AND ASSET QUALITY THOSE FACTORS OFFSET CONTINUED RISKS STEMMING FROM THE COMPANY'S AGGRESSIVE GROWTH AND LIMITED GEOGRAPHICAL DIVERSIFICATION S&P SAID 9403020148 940302 WHO'S NEWS NATIONAL TRANSACTION NETWORK INC NATIONAL TRANSACTION NETWORK INC HUDSON MASS PAUL SIEGENTHALER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS DEVELOPER OF ELECTRONIC PAYMENT SYSTEMS THE POSTS WERE PREVIOUSLY HELD BY JEFFREY B FINESTONE WHO REMAINS CHAIRMAN MR SIEGENTHALER 35 YEARS OLD JOINED THE COMPANY IN 1988 AND WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT OPERATIONS MR FINESTONE 44 ALSO SERVES AS PRESIDENT OF BCE VENTURE CAPITAL INC 9403020147 940302 DANSKIN PLANS GOLF TENNIS LINE NEW YORK DANSKIN INC SAID IT WILL INTRODUCE A NEW LINE OF GOLF AND TENNIS APPAREL FOR WOMEN THIS FALL THE MANUFACTURER OF WOMEN'S EXERCISE AND DANCE CLOTHING AND LEG WEAR SAID THE NEW LINE WILL BE DESIGNED BY LISA BERGER FORMERLY DIRECTOR OF DESIGN AT ELLESSE USA INC A NEW YORK MAKER OF SPORTS APPAREL DANSKIN SAID THE NEW LINE IS A RETURN TO A MARKET WHERE IT HAD SUBSTANTIAL BUSINESS IN THE 1970S 9403020146 940302 LEISURE & ARTS THE GALLERY PICASSO'S TEARY MUSES BY DEBORAH SOLOMON LOS ANGELES PICASSO AND THE WEEPING WOMEN THE YEARS OF MARIETHERESE WALTER & DORA MAAR MIGHT SOUND LIKE THE NAME OF A NEW SOAP OPERA AND IN FACT IT IS A VERITABLE MELODRAMA PLAYED OUT IN THE GALLERIES OF THE LOS ANGELES COUNTY MUSEUM OF ART THE SHOW PUTS A HOLLYWOOD SPIN ON PICASSO FOCUSING ON THE SHORT BUT SCHMALTZY INTERLUDE WHEN NOTHING SEEMED TO INTEREST HIM MORE THAN DEPICTING HIS LOVERS' TEARSTREAKED FACES IN THIS CITY OF EXTRAVAGANZAS HOW FITTING THAT PICASSO'S OILONCANVAS MOURNERS HAVE ARRIVED AS IF ON CUE ALONG WITH THE EARTHQUAKE AND MUDSLIDES YOU MAY THINK OF PICASSO AS ART'S COLOSSAL CUBIST THE MAN WHO SMASHED THE HISTORY OF ART INTO A THOUSAND TILTING SHARDS BUT FORGET WHAT YOU LEARNED AT COLLEGE TODAY'S CULTURE IS DEMANDING THAT WE SEE HIM AS SOMEONE NEW ART'S LEADING MALE LOUSE PICASSO AND THE WEEPING WOMEN WRAPS FEMINIST IDEOLOGY IN LA TINSEL TO GIVE US AN ART SHOW THAT SEEMS CLOSER TO A PRECIS OFF THE DESK OF MIKE OVITZ IN THE COURSE OF HIS LONG PRODIGIOUS CAREER PICASSO NEVER LOST HIS TALENT FOR REDUCING WOMEN TO TEARS BUT HE PAINTED THEM CRYING FOR ONLY A LIMITED PERIOD IN 1937 THE YEAR OF HIS GRAYHUED EPIC GUERNICA HE PRODUCED 60ODD WORKS IN VARIOUS MEDIA DEPICTING HIS MISTRESSES IN UNMISTAKABLE DISTRESS TEARS GUSHING FORTH LIPS AQUIVER HANDKERCHIEFS CLUTCHED AGAINST PROPERLY FRAGMENTED CUBIST FACES THIS ONE BRIEF LACHRYMAL MOMENT IS THE THEME OF THE LA SHOW WHICH WAS ORGANIZED BY THE ART HISTORIAN JUDI FREEMAN AND STAYS UP UNTIL MAY 1 BEFORE TRAVELING TO THE METROPOLITAN MUSEUM IN NEW YORK AND THE ART INSTITUTE OF CHICAGO WHY DID PICASSO FEEL COMPELLED TO PAINT WOMEN CRYING THE MOTIF WAS MANY THINGS TO HIM INCLUDING A CONVENIENT SYMBOL FOR THE SUFFERING UNLEASHED BY THE SPANISH CIVIL WAR SEVERAL OF HIS STUDIES FOR GUERNICA DEPICT SOBBING PEASANT WOMEN THEIR HEADS AS ROUND AND STOCKY AS POTATOES TEARS FLOWING DOWN ALONG THEIR CHEEKS IN A RICH BLACK RIVER OF PENCIL INTERESTINGLY HOWEVER PICASSO EVENTUALLY DECIDED TO DELETE HIS WEEPING WOMEN FROM THE FINISHED GUERNICA AS IF THE IMAGE WAS TOO ACHINGLY INTIMATE TOO MUCH LIKE HIS EVERYDAY LIFE TO FIT INTO HIS EXALTED POLITICAL SCHEME INSTEAD HE SAVED THE IMAGE FOR A SERIES OF MORE PERSONAL PAINTINGS BEGUN IMMEDIATELY AFTER FINISHING GUERNICA AMONG THE BEST IS THE SMALLISH JEWELLIKE WEEPING WOMAN NOW OWNED BY THE TATE GALLERY IN LONDON THE PAINTING SHOWS A DARKHAIRED WOMAN HAVING A GOOD CRY HER FACE AS JAGGED AND RICHLY COLORED AS BROKEN GLASS THERE CAN BE NO PRETENDING THAT SHE BELONGS TO THE CAST OF AGGRIEVED PEASANTS CREATED FOR GUERNICA RATHER SHE'S A SUAVE PARISIAN COMPLETE WITH A FASHIONABLE RED HAT A WOMAN WEARING SUCH A HAT CAN BE CRYING OVER ONE THING ONLY THE DISAPPOINTMENTS OF ROMANTIC LOVE FROM ONE WORK TO THE NEXT WE SEE THE TWO WOMEN WHO THEN FIGURED PROMINENTLY IN PICASSO'S EROTIC LIFE DORA MAAR AN ACCOMPLISHED AND ARTICULATE PHOTOGRAPHER AND MARIETHERESE WALTER THE BLOND ROUNDED SLEEPYEYED MISTRESS WHO PRECEDED MAAR BY A DECADE SOMETIMES PICASSO COMBINED THEIR FEATURES INTO A SINGLE HYBRID FIGURE AS IN THE WEEPING WOMAN ETCHING SHOWN HERE IN WHICH ONE HAND IS PERFECTLY MANICURED DOWN TO ITS RAZORSHARP NAILS AND THE OTHER HAND CURIOUSLY HAS BITTENOFF NAILS AND A SOFTER PRESENCE THE WEEPING HEAD CRIES INTO A HANDKERCHIEF A ROBUST BILLOWING FORM THAT SEEMS TO ALMOST BLOSSOM WHILE THE WOMAN HOLDING IT LOOKS CRUMPLED PICASSO WAS HARDLY THE FIRST ARTIST TO FEEL INSPIRED BY THE SIGHT OF A CRYING WOMAN MANY OF HIS SPANISH PREDECESSORS EXPLORED THE THEME THE MATER DOLOROSA SORROWFUL MOTHER OF CHRIST WAS A POPULAR SUBJECT IN 16TH AND 17THCENTURY SPANISH PAINTING BUT PICASSO'S DOLEFUL WOMEN OF COURSE AREN'T MOURNING JESUS THEY'RE MOURNING PABLO IN HIS MIND ANOTHER SAVIOR COINCIDENTALLY A SECOND EXHIBITION CURRENTLY IN LOS ANGELES THE RETROSPECTIVE OF ROY LICHTENSTEIN'S WORK AT THE MUSEUM OF CONTEMPORARY ART ALSO ABOUNDS WITH PICTURES OF CRYING WOMEN MANY OF MR LICHTENSTEIN'S CLASSIC POP PAINTINGS FROM THE EARLY 1960S SHOW COMICBOOK BLONDES WEEPING THEIR EYES OUT THOUGH THE PICTURES COME LAYERED WITH THE ARTIST'S TRADEMARK IRONY THEY UNDERSCORE A FUNDAMENTAL TRUTH MOST MEN'S IDEA OF A ROMANTIC HEROINE IS A WOMAN WHO'S NOT JUST CHARMING AND FUN BUT MORE IMPORTANTLY WILLING TO DIE OF GRIEF HOW ELSE TO EXPLAIN ANNA KARENINA ENDING UP UNDER THE WHEELS OF A TRAIN AT ANY RATE THE INSTALLATION OF PICASSO AND THE WEEPING WOMEN IS MEANT TO ACCENTUATE THE HUMAN DRAMA IMPLICIT IN THE PAINTINGS THE WALLS HAVE BEEN PAINTED A DUSKY PURPLE AND THE LIGHTS ARE TURNED DOWN SO LOW YOU KEEP THINKING YOU FORGOT TO REMOVE YOUR SUNGLASSES AT THE DOOR THE WHOLE THING LOOKS LIKE A BORDELLO THE BENCHES ARE CURVY AND SO ARE THE WALLS THE PAINTINGS ARE HUNG ON LONG GENTLY ARCHING PARTITIONS PRESUMABLY MEANT TO ECHO THE SINUOUS FORMS OF PICASSO'S ART AND OF HIS MISTRESSES AS WELL IN TRUTH THESE CURVES HAVE NOTHING TO DO WITH PICASSO WHO IN HIS WORK ALWAYS SET HIS CURVES OFF AGAINST STRAIGHT LINES AND ANGLES BUT THEN THE QUESTION OF ARTISTIC ACHIEVEMENT DOES NOT WEIGH HEAVILY IN THIS SHOW THE WEEPING WOMEN ARE NOT THE DEMOISELLES D'AVIGNON THEY DON'T REPRESENT A RADICAL BREAKTHROUGH BUT RATHER A MINOR AND MAUDLIN FOOTNOTE TO PICASSO'S WORK OF THE '30S WHEN HIS COLOR RIPENED AND HIS FORMS BECAME PLEASANTLY STYLIZED PRESUMABLY THE SHOW WAS ORGANIZED LESS TO SHOWCASE GREAT PICTURES THAN THE LEGENDARY LADIES WHO APPEAR IN THEM IT GOES AGAINST TRADITIONAL SCHOLARSHIP ON PICASSO BY GIVING A STARRING ROLE TO HIS MUSES STILL JUDGED ON ITS OWN FEMINIST TERMS THE SHOW IS A FLOP BY ISOLATING PAINTINGS OF HELPLESS WOMEN WEEPING INTO HANKIES IT DEFINES WOMANHOOD AS VICTIMHOOD AND FALLS PREY TO SEXISM'S OLDEST CLICHE AND AS IF CONSTRUING PICASSO'S FAMOUS SADISM AS AN ACT OF HEARTWARMING ROMANCE THE SHOW OPENED ON VALENTINE'S DAY STILL ONE DOESN'T WANT TO SOUND OVERLY DISMISSIVE JUST THINK HOW GREAT LENA OLIN WOULD BE AS DORA MAAR 9403020145 940302 TEXAS JOURNAL COLLEGE SPORTS SHUFFLE THE REAL SCORE AS CONFERENCE FALLS WHO STANDS TO GAIN AND LOSE FINANCIALLY BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S THE REAL SCORE NOW THAT THE DEMISE OF THE SOUTHWEST CONFERENCE IS ASSURED WITH TEXAS TEXAS A&M BAYLOR AND TEXAS TECH ABANDONING THE LEAGUE FOR THE BIG EIGHT LET'S LOOK AT WHAT THE MOVE MEANS FOR THE NUMBERS THAT REALLY MATTER IN COLLEGE SPORTS THE BOTTOM LINE AT THE UNIVERSITY OF HOUSTON RICE SOUTHERN METHODIST AND TEXAS CHRISTIAN THE FOUR SCHOOLS LEFT TO FEND FOR THEMSELVES THE SOUTHWEST CONFERENCE'S DEATH WILL MEAN THE LOSS OF ROUGHLY 2 MILLION A YEAR APIECE THOUGH THE SCHOOLS WON'T CONFIRM THE FIGURE SEVERAL LEAGUE OFFICIALS SAY THAT'S WHAT THEY HAVE RECEIVED AS PART OF THE CONFERENCE'S AGREEMENT TO SHARE REVENUE FROM TELEVISION BOWL GAME AND NCAA BASKETBALL TOURNAMENT APPEARANCES WHAT DOES THAT 2 MILLION MEAN ABOUT 20 OF THE ATHLETIC BUDGET AT MANY CONFERENCE SCHOOLS BILL CARR THE UNIVERSITY OF HOUSTON'S ATHLETIC DIRECTOR SAYS THAT IF THE SCHOOL CAN'T REPLACE THE MONEY THROUGH A NEW CONFERENCE ARRANGEMENT HIS DEPARTMENT WILL HAVE TO TRIM ITS OFFERINGS TEXAS AND TEXAS A&M HAVE CARRIED THE SOUTHWEST CONFERENCE BOTH SCHOOLS HAVE STRONG NATIONAL AND REGIONAL TV APPEAL LAST YEAR THEY GENERATED MORE THAN 60 OF THE CONFERENCE'S ESTIMATED 8 MILLION IN FOOTBALL TV MONEY WITHOUT THEM THE FOUR ORPHANS HAVE LITTLE TO OFFER TV THE FOUR MAY TRY TO LINK UP WITH ANOTHER CONFERENCE THAT ALREADY HAS A TV CONTRACT THOUGH FINDING CANDIDATES WILL BE HARD OR THEY MAY TRY TO FIND NEW PARTNERS AND START A LEAGUE THAT WILL ATTRACT A TV DEAL THAT'S THE INCLINATION OF RICE SMU AND TCU WHICH HAVE BEEN MEETING THIS WEEK WITH THE LIKES OF TULANE MEMPHIS STATE AND LOUISVILLE THREE SCHOOLS WITH WELLREGARDED BASKETBALL PROGRAMS AN EXECUTIVE AT RAYCOM INC A CHARLOTTEBASED SPORTSPROGRAMMING NETWORK THAT NOW BROADCASTS SOUTHWEST CONFERENCE FOOTBALL AND BASKETBALL GAMES SAYS HIS COMPANY MIGHT BE INTERESTED IN THE BASKETBALL RIGHTS TO SUCH A LEAGUE BUT THE TEAMS INVOLVED WOULD LACK APPEAL AS FAR AS FOOTBALL IS CONCERNED HE ADDS WHILE HOUSTON RICE SMU AND TCU LOSE OUT BAYLOR AND TEXAS TECH WILL BENEFIT FROM THEIR MOVE TO THE NEW STILLUNNAMED CONFERENCE NEARLY DOUBLING THE REVENUESHARING DOLLARS FLOWING INTO THEIR ATHLETIC DEPARTMENTS TEXAS AND TEXAS A&M WILL ALSO GAIN BUT PROBABLY NOT AS MUCH BECAUSE THEY HAVE RECEIVED BIGGERTHANAVERAGE SHARES OF SOUTHWEST CONFERENCE REVENUE CLOSER TO 25 MILLION LEAGUE OFFICIALS SAY WHILE SIX OF THE CURRENT EIGHT SOUTHWEST CONFERENCE SCHOOLS RARELY LAND EVEN ON REGIONAL TV THE EXPANDED BIG EIGHT WILL HAVE FIVE STRONG FOOTBALL DRAWS COLORADO NEBRASKA OKLAHOMA TEXAS AND TEXAS A&M AND SIX BIG EIGHT TEAMS LED BY KANSAS EARNED BERTHS IN THE LUCRATIVE NCAA BASKETBALL TOURNAMENT LAST YEAR THAT CONCENTRATED NATIONAL PROMINENCE AND THE MOREFREQUENT HIGHPROFILE MATCHUPS IT WILL GENERATE WILL MEAN MORE MONEY ALL AROUND LAST YEAR BIG EIGHT SCHOOLS TOOK IN MORE THAN 3 MILLION EACH IN SHARED REVENUE FOR BAYLOR AND TEXAS TECH THE REVAMPED CONFERENCE COULD GENERATE TV AND OTHER REVENUE OF ROUGHLY 38 MILLION EACH AT BAYLOR THE NEW DEAL WILL ENABLE THE ATHLETIC DEPARTMENT TO HIRE A FULLTIME RECEPTIONIST INSTALL AIR CONDITIONING IN THE BASEBALL LOCKER ROOMS AND UPGRADE HIGHSCHOOLCALIBER SCOREBOARDS TEXAS TECH HOPES TO ADD WOMEN'S TEAMS IN AT LEAST SOFTBALL AND SOCCER THE SCHOOL ALSO PLANS TO HIRE PERSONNEL TO GIVE ATHLETES MORE ACADEMIC COUNSELING TEXAS TECH'S AND BAYLOR'S HOMETOWNS LUBBOCK AND WACO ALSO EXPECT BIG REWARDS FROM THE CONFERENCE SWITCH MOREPROMINENT CONFERENCE OPPONENTS SHOULD BOOST GAME ATTENDANCE AND BENEFIT THE LOCAL ECONOMIES CIVIC OFFICIALS SAY AUSTIN AND COLLEGE STATION WON'T FEEL THE SAME IMPACT BECAUSE TEXAS AND TEXAS A&M HAVE SO MANY ALUMNI THAT THEY USUALLY FILL THEIR STADIUMS ANYWAY WHEN OKLAHOMA PLAYED AT TEXAS TECH IN 1992 ATTENDANCE TOTALED NEARLY 49000 75 MORE THAN FOR A GAME AGAINST HOUSTON THAT SEASON A GAME LIKE THAT CONSERVATIVELY TRANSLATES INTO 600000 FOR THE LUBBOCK AREA HOTEL INDUSTRY AND AT LEAST 12 MILLION IN TOTAL SPENDING LOCAL OFFICIALS SAY FIVE OR SIX SUCH HOME GAMES A YEAR WOULD REPRESENT ABOUT 01 OF LUBBOCK COUNTY'S 51 BILLION ECONOMY WACO OFFICIALS SAY BIG GAMES THERE ALSO HAVE AT LEAST A MILLIONDOLLAR IMPACT WITH THE HELP OF THE LOCAL CHAMBER OF COMMERCE BAYLOR'S ATHLETIC DEPARTMENT SET OUT THREE YEARS AGO TO ENSURE THAT IN A LEAGUE SHAKEUP THE BEARS WOULD BE ATTRACTIVE ENOUGH TO BE INCLUDED IN A NEW OR EXPANDED LEAGUE A TASK FORCE OF CORPORATE AND COMMUNITY LEADERS RAISED SEASONTICKET SALES 25 AND BAYLOR'S HOME ATTENDANCE LAST YEAR 34300 A GAME TRAILED JUST TEXAS A&M AND TEXAS AMONG CONFERENCE SCHOOLS LIBERTY SPORTS INC THE DALLASBASED PARENT OF HOUSTON'S HOME SPORTS ENTERTAINMENT AND THE PRIME NETWORK COULD TURN UP A WINNER WITH THE BIRTH OF THE REVAMPED BIG EIGHT LIBERTY A UNIT OF LIBERTY MEDIA CORP CHEYENNE WYO HAS OFFERED THE NEW LEAGUE 40 MILLION FOR FIVE YEARS OF CABLETV RIGHTS TO CONFERENCE FOOTBALL GAMES IT WOULD GET SECOND CHOICE OF GAMES AFTER ABC WHICH IS EXPECTED TO SIGN A CONTRACT SOON FOR BROADCAST RIGHTS LIBERTY'S PRIME NETWORK NOW AIRS A BIG EIGHT GAME OF THE WEEK ON A DELAYED BASIS AND CARRIES SOME SOUTHWEST CONFERENCE GAMES PRODUCED BY RAYCOM BECAUSE THE NEW LEAGUE WILL HAVE MORE GAMES WITH NATIONAL APPEAL LIBERTY EXPECTS IT WILL BE ABLE TO SYNDICATE MANY OF THE CONTESTS TO SPORTS CABLE SYSTEMS NATIONWIDE LIBERTY ISN'T ALONE IN PURSUING THE CABLE RIGHTS RAYCOM ALSO IS INTERESTED IN A FOOTBALL PACKAGE FOR THE NEW LEAGUE A RAYCOM EXECUTIVE SAYS HOWEVER THAT A 40 MILLION CABLE PACKAGE PROBABLY IS MORE THAN THE LEAGUE'S GAMES ARE WORTH THREE CONFERENCERELATED EVENTS HAVE GENERATED UP TO 48 MILLION A YEAR FOR DALLAS'S ECONOMY THE TEXASOKLAHOMA FOOTBALL GAME THE MOBIL COTTON BOWL AND THE LEAGUE BASKETBALL TOURNAMENT THE CONFERENCE SHUFFLE MEANS ONE OF THOSE EVENTS WILL SOON BE DEAD AND THE OTHER TWO FACE UNCERTAIN FUTURES WHEN THE CONFERENCE SHUTS DOWN IN 1996 REUNION ARENA WILL LOSE THE BASKETBALL TOURNAMENT WHICH THE DALLAS CONVENTION AND VISITORS BUREAU SAYS HAS GENERATED 1 MILLION TO 3 MILLION A YEAR FOR THE LOCAL ECONOMY THE NEW CONFERENCE'S TOURNAMENT IS LIKELY TO REMAIN EVERY YEAR IN KANSAS CITY MO WHERE THE BIG EIGHT TOURNAMENT HAS BEEN A ROUSING SUCCESS THE TEXASOKLAHOMA FOOTBALL GAME WHICH HAS GENERATED 17 MILLION TO 20 MILLION A YEAR FOR DALLAS MAY SOON BEGIN ALTERNATING BETWEEN THE SCHOOLS' CAMPUSES IN AUSTIN AND NORMAN OKLA OKLAHOMA OFFICIALS SAY THEY HAVE NO PLANS TO MOVE THE GAME FROM DALLAS BUT THEY HAVE PUSHED FOR YEARS TO RELOCATE IT ARGUING THAT ITS ECONOMIC STIMULUS SHOULD BENEFIT THE SCHOOLS' COMMUNITIES THAT'S MORE LIKELY NOW UNDER BIG EIGHT RULES THE HOME TEAM A DESIGNATION THAT WILL ALTERNATE BETWEEN THE SCHOOLS EACH YEAR DECIDES THE GAME'S SITE THE CONFERENCE SHUFFLE MEANS UNCERTAINTY FOR COTTON BOWL OFFICIALS THE SOUTHWEST CONFERENCE FOR YEARS HAS SENT ITS CHAMPION TO THE COTTON BOWL WITH THE CONFERENCE'S PASSING THE GAME WILL LOSE THAT STRONG LOCAL DRAW BUT OFFICIALS AT NBC WHICH HAS THE TV CONTRACT FOR THE COTTON BOWL THROUGH NEXT YEAR'S GAME SAY THAT COULD PROVE BENEFICIAL IF THE TOP TWO TEAMS IN THE POLLS AREN'T COMMITTED TO OTHER BOWLS THROUGH CONFERENCE PACTS THE COTTON BOWL COULD BID TO PAIR THEM IN AN UNOFFICIAL NATIONAL CHAMPIONSHIP GAME THAT WOULD MEAN MORE MONEY FOR DALLAS AS IT STANDS THE BOWL GENERATES AS MUCH AS 25 MILLION THE ORANGE BOWL WHICH HOSTED LAST SEASON'S NATIONAL CHAMPIONSHIP GAME INJECTED 127 MILLION INTO THE MIAMI ECONOMY THE SOUTHWEST CONFERENCE'S DEATH WON'T JUST AFFECT CITIES AND UNIVERSITIES ITS IMPACT WILL ALSO BE FELT ON MUCH SMALLER AND MORE PERSONAL LEVELS IF THE FOUR SCHOOLS LEFT OUT OF THE EXPANDED BIG EIGHT DON'T FORM A NEW LEAGUE WHEN THE SOUTHWEST CONFERENCE CLOSES ITS DOORS IN TWO YEARS THE 13 PEOPLE ON ITS HEADQUARTERS STAFF WILL LOSE THEIR JOBS THE END OF THE CONFERENCE ALSO WILL HURT SMALL BUSINESSES LIKE HOLMES MILLET ADVERTISING INC OF DALLAS WHICH GETS 15 TO 20 OF ITS REVENUE FROM WORK FOR THE CONFERENCE WE'LL DEFINITELY MISS IT SAYS PARTNER JEFF MILLET 9403020144 940302 TREASURY PLANS TO RAISE 225 MILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 225 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2498 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JUNE 9 1994 AND SEPT 8 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794K94 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N26 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9403020143 940302 INTERNATIONAL MANNESMANNRWE LINKUP BRUSSELS THE EUROPEAN UNION COMMISSION APPROVED A PLANNED MOBILE TELECOMMUNICATIONS LINKUP BETWEEN MANNESSMANN EUROKOM GMBH A UNIT OF MANNESMANN AG AND RWEENERGIE AG A UNIT OF RWE AG THE PANEL SAID THE COMPANIES' PLANNED JOINT VENTURE IN THE MOBILE DATA TRANSMISSION SERVICES FILED WOULD BE GOOD FOR COMPETITION NOTING THAT ONLY DEUTSCHE BUNDESPOST TELEKOM IS ACTIVE IN THE MARKET NOW THE COMMISSION SAID THE GERMAN MINISTRY FOR POSTAL SERVICES AND TELECOMMUNICATIONS HAD MADE EU APPROVAL OF THE LINKUP A PRECONDITION FOR GRANTING AN OPERATING LICENSE TO THE NEW COMPANY 9403020142 940302 INTERNATIONAL NIPPON PAPER INDUSTRIES TOKYO NIPPON PAPER INDUSTRIES CO ONE OF JAPAN'S LARGEST PAPER MANUFACTURERS WILL HELP BUILD AND OPERATE A FACTORY NEAR ST PETERSBURG RUSSIA THAT WILL PRODUCE PAPER FOR USE IN FAX MACHINES A SPOKESMAN SAID FAX ROLL FINANCE A FINLANDBASED JOINT PAPERMAKING VENTURE IN WHICH NIPPON PAPER INDUSTRIES HOLDS A 31 STAKE WILL PROVIDE THE FINANCING FOR FAX ROLL RUSSIA THE ENTITY THAT WILL OPERATE THE FACTORY THE SPOKESMAN SAID THE GOVERNMENTS OF FINLAND AND RUSSIA ALSO HOLD STAKES IN FAX ROLL FINANCE AND WILL PROVIDE SOME OF THE FINANCING FOR THE PROJECT 9403020141 940302 YIELDS ON CDS ROSE WEEKLY SURVEY SAYS NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS GENERALLY ROSE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EDGED UP TO 287 FROM 283 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ROSE TO 458 FROM 454 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCREASED TO 328 FROM 321 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD JUMPED TO 466 FROM 452 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 302 FROM 297 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 489 FROM 484 ACCORDING TO BANXQUOTE 9403020140 940302 INTERNATIONAL SALOMON TO ADVISE SALE OF BRITISH TELECOM DEBT LONDON SALOMON BROTHERS WAS APPOINTED BY THE UK TREASURY TO HELP ADVISE ON THE DISPOSAL OF BILLIONS OF POUNDS OF DEBT ISSUED BY BRITISH TELECOMMUNICATIONS PLC AND A NUMBER OF BRITISH UTILITY CONCERNS IT WAS THE FIRST MAJOR AWARD TO THE SALOMON INC UNIT SINCE IT WAS BOUNCED FROM A BT PRIVATIZATION EFFORT IN THE WAKE OF THE 1991 TREASURY BILL SCANDAL THE DEBT WITH A FACE VALUE OF 28 BILLION 416 BILLION IS THAT ISSUED BY BT AND A NUMBER OF ELECTRICITY COMPANIES AT THE TIME OF THEIR PRIVATIZATION SOME YEARS AGO BUT MOST OF THE PAPER HAS A COUPON YIELD OF ABOUT 12 REFLECTING THE LEVEL OF INTEREST RATES IN BRITAIN AT THE TIME OF ISSUE BECAUSE RATES HAVE FALLEN SHARPLY THE PAPER'S MARKET VALUE IS SIGNIFICANTLY HIGHER THAN FACE VALUE SALOMON OFFICIALS SAID THEY COULD MAKE NO COMMENT ON THEIR LIKELY RECOMMENDATIONS FOR THE DEBT BUT ONE OPTION IS LIKELY TO BE AN AUCTION OPEN TO BOTH THE ISSUING COMPANIES AND INSTITUTIONAL INVESTORS IN A SIMILAR SALE OF 13 MILLION OF PRIVATIZED COMPANIES' DEBT IN NOVEMBER 1992 AROUND HALF OF THE PAPER WAS TAKEN UP BY THE ISSUING COMPANIES AS A WAY OF REDUCING THEIR OUTSTANDING BORROWINGS 9403020139 940302 INTERNATIONAL BRIEF KLM ROYAL DUTCH AIRLINES FIRM TO SELL MOST OF STAKE IN A MAPMAKING AFFILIATE KLM ROYAL DUTCH AIRLINES SAID IT INTENDS TO SELL 51 OF ITS MAJORITYOWNED KLM AEROCARTO BV MAPMAKING AFFILIATE TO EUROSENSE GROUP OF BELGIUM FINANCIAL TERMS WEREN'T DISCLOSED THE DUTCH CARRIER SAID IT WILL RETAIN 9 OF AEROCARTO WITH UNITED AERIAL MAPPING INC OF SAN ANTONIO HOLDING ONTO ITS 40 STAKE KLM WHICH IS 382 STATEOWNED SAID THE DISPOSAL OF THE 51 STAKE IN AEROCARTO IS IN LINE WITH THE COMPANY'S STRATEGY OF SHEDDING NONCORE OPERATIONS AEROCARTO HAS ABOUT 145 MILLION GUILDERS 76 MILLION OF REVENUE A YEAR AND IS MODESTLY PROFITABLE KLM SAID 9403020138 940302 FINANCING BUSINESS UNITED COS FINANCIAL CORP UNITED COS FINANCIAL CORP BATON ROUGE LA SAID IT SOLD 1783 MILLION OF MORTGAGEBACKED SECURITIES IN A PUBLIC OFFERING THROUGH UNDERWRITERS PRUDENTIAL SECURITIES INC THE FINANCIAL SERVICES AND INSURANCE COMPANY SAID THE SECURITIES CONSISTED OF SIX PARTS ONE ADJUSTABLERATE AND FIVE FIXEDRATE WITH AN AVERAGE YIELD TO INVESTORS RANGING FROM 4825 TO 72 ON THE FIXEDRATE BONDS THE SECURITIES HAVE AN EFFECTIVE LIFE OF 35 YEARS AND WERE RATED TRIPLEA BY STANDARD & POOR'S CORP MOODY'S INVESTORS SERVICE INC AND FITCH INVESTORS SERVICE INC THE COMPANY SAID 9403020137 940302 ETHYL'S CREDIT RATING IS LOWERED BY S&P NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS CREDIT RATING ON SENIOR DEBT OF ETHYL CORP AND REMOVED IT FROM ITS CREDITWATCH LIST S&P SAID IT TOOK THE ACTION BECAUSE ETHYL'S RECENT SPINOFF OF ITS CHEMICAL BUSINESS ALBEMARLE CORP REDUCES THE DIVERSITY OF BUSINESSES FROM WHICH ITS EARNINGS FLOW S&P LOWERED ETHYL'S SENIOR DEBT RATING TO TRIPLEB FROM TRIPLEBPLUS THE RICHMOND VA MAKER OF FUEL ADDITIVES SAID THE RATING CHANGE WASN'T SURPRISING IN VIEW OF PREVIOUS CONVERSATIONS WITH S&P OVER THE IMPACT OF THE ALBEMARLE SPINOFF 9403020136 940302 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 1/8 LOW 3 3/16 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 348 30 TO 59 DAYS 355 60 TO 89 DAYS 360 90 TO 129 DAYS 368 130 TO 179 DAYS 378 180 TO 239 DAYS 385 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 352 30 DAYS 367 60 DAYS 374 90 DAYS CERTIFICATES OF DEPOSIT 284 ONE MONTH 293 TWO MONTHS 304 THREE MONTHS 320 SIX MONTHS 346 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 345 ONE MONTH 363 THREE MONTHS 385 SIX MONTHS BANKERS ACCEPTANCES 343 30 DAYS 350 60 DAYS 355 90 DAYS 370 120 DAYS 367 150 DAYS 373 180 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 3/4 3 5/8 THREE MONTHS 3 7/8 3 3/4 FOUR MONTHS 3 15/16 3 13/16 FIVE MONTHS 4 3 7/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 11/16 THREE MONTHS 3 15/16 SIX MONTHS 4 5/16 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 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 742 60 DAYS 747 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 741 60 DAYS 750 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 275 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403020135 940301 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 9403020133 940302 INTERNATIONAL JAPAN'S HOSOKAWA MIGHT REPLACE ECONOMIC MINISTERS BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN MIGHT REPLACE ITS FINANCE MINISTER AND ITS CHIEF ECONOMIC PLANNER IF THE PRIME MINISTER SUCCEEDS IN EFFECTING A PROPOSED CABINET SHUFFLE A TOP GOVERNMENT OFFICIAL SAID YUKIO HATOYAMA DEPUTY CHIEF CABINET SECRETARY SAID THE SEVENMONTHOLD ADMINISTRATION OF PRIME MINISTER MORIHIRO HOSOKAWA HAS NEARLY COMPLETED ITS FIRST MISSION EFFECTING AN ELECTORALREFORM BILL ITS NEXT STEP HE SAID IN AN INTERVIEW COULD BE TO PUT TOGETHER AN ECONOMICREFORM CABINET TO TACKLE SUCH ISSUES AS DEREGULATING THE ECONOMY AND RESUMING GROWTH IF SUCH A SHUFFLE OCCURS MR HATOYAMA SAID MR HOSOKAWA MIGHT CHANGE HIS TWO TOP ECONOMIC MINISTERS BUT MR HATOYAMA ADDED THAT HE ISN'T SURE WHETHER SUITABLE REPLACEMENTS MIGHT BE FOUND THE FINANCE PORTFOLIO IS HELD BY HIROHISA FUJII AND THE ECONOMIC PLANNING AGENCY IS HEADED BY MANAE KUBOTA MR HATOYAMA IS ONE OF THE PRIME MINISTER'S CHIEF REPRESENTATIVES A CHANGE IN THE KEY FINANCE MINISTRY SLOT COULD BE DISRUPTIVE COMING AT A TIME WHEN JAPAN IS INVOLVED IN A BITTER TRADE DISPUTE WITH THE US BUT REPLACING THE TWO POLITICAL LEADERS WHO HOLD THE COUNTRY'S TOP ECONOMIC PORTFOLIOS IS LIKELY TO HAVE LITTLE LASTING EFFECT ON JAPANESE FINANCE POLICY REGULAR CABINET SHUFFLES ARE A FEATURE OF JAPANESE POLITICS AND CAREER BUREAUCRATS HAVE MUCH MORE CONTROL THAN THEIR POLITICIAN BOSSES OVER THE SHAPING AND ADMINISTRATION OF POLICY MR HOSOKAWA SAID THROUGH ANOTHER SPOKESMAN TUESDAY THAT HE WOULD LIKE TO CARRY OUT HIS FIRST MAJOR CABINET SHUFFLE BEFORE HE DELIVERS A MAJOR FORTHCOMING POLICY SPEECH THAT SPEECH IS SCHEDULED FOR AS EARLY AS FRIDAY MR HOSOKAWA MAY NOT BE ABLE TO PULL OFF HIS SHAKEUP RIGHT AWAY HOWEVER THE MAIN AIM OF THE CHANGE IS THOUGHT TO BE THE REMOVAL OF MASAYOSHI TAKEMURA MR HOSOKAWA'S CHIEF CABINET SECRETARY WHO HAS PUBLICLY VOICED DIFFERENCES WITH THE PRIME MINISTER MR TAKEMURA'S ALLIES OPPOSE REMAKING THE CABINET NOW 9403020132 940302 ECONOMY US TO RENEW A RETALIATORY TRADE MEASURE EXPECTED CLINTON ACTION IS CERTAIN TO INCREASE TENSIONS WITH JAPAN BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A MOVE CERTAIN TO RATCHET UP TENSIONS WITH JAPAN PRESIDENT CLINTON WILL SOON ISSUE AN EXECUTIVE ORDER RENEWING A TOUGH TRADE PROVISION KNOWN AS SUPER 301 THAT SINGLES OUT COUNTRIES FOR RETALIATION CONGRESSIONAL SOURCES SAID THEY HAVE BEEN NOTIFIED BY THE ADMINISTRATION THAT US TRADE REPRESENTATIVE MICKEY KANTOR WILL ANNOUNCE THE DECISION TOMORROW CLINTON ADMINISTRATION OFFICIALS SAID THE PRESIDENT HAS MADE THE DECISION TO RENEW THE TRADE MEASURE AND THAT THE ANNOUNCEMENT COULD OCCUR AS EARLY AS TOMORROW THE EXPECTED MOVE FOLLOWS THE BREAKDOWN OF TRADE NEGOTIATIONS LAST MONTH DURING A VISIT TO WASHINGTON BY JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA JAPANESE NEGOTIATIORS RESISTED US EFFORTS TO GET JAPAN TO ACCEPT NUMERICAL TARGETS AS PART OF A PLAN TO CUT JAPAN'S HUGE TRADE SURPLUS WITH THE US UNDER SUPER 301 THE US TARGETS COUNTRIES THAT IT CONCLUDES ENGAGE IN A PATTERN OF UNFAIR TRADING PRACTICES IT NEGOTIATES WITH THOSE COUNTRIES TO CLEAR UP THE TRADING DISPUTES AND IF A RESOLUTION ISN'T REACHED WITHIN 18 MONTHS THE US WOULD RETALIATE MOST OFTEN WITH PUNITIVE TARIFFS ON IMPORTS FROM THE TARGETED COUNTRY OFFICIALS CONSIDER THE MEASURE TO BE ONE OF THE TOUGHEST UNILATERAL TRADE ACTIONS THE US CAN TAKE CONGRESS PASSED SUPER 301 IN 1988 IN AN EFFORT TO FORCE THE BUSH ADMINISTRATION TO TAKE A TOUGHER STANCE AGAINST TRADING PARTNERS THE NEXT YEAR THE US TARGETED JAPAN BRAZIL AND INDIA AND EVENTUALLY WON TRADE CONCESSIONS FROM JAPAN AND BRAZIL BEFORE THE LAW EXPIRED IN 1990 RENEWAL OF SUPER 301 BY THE CLINTON ADMINSTRATION WOULD SUPERSEDE EFFORTS IN CONGRESS TO RENEW THE MEASURE THROUGH LEGISLATION AFTER THE TRADE TALKS WITH JAPAN BROKE DOWN THE US QUICKLY PINPOINTED ONE AREA OF DISPUTE CELLULAR TELEPHONES MR KANTOR HOSTED A HUGE BRIEFING WHERE HE CHARGED THAT JAPAN UNFAIRLY CLOSES ITS MARKET TO MOTOROLA INC A MAKER OF CELLULAR PHONES THE US CLAIMS THAT JAPAN HASN'T LIVED UP TO PAST AGREEMENTS IN WHICH IT PLEDGED TO OPEN ITS MARKET JAPAN CONTENDS THE CHARGES ARE UNFAIR THE US HAS UNTIL ABOUT MIDMARCH TO DRAW UP A PRELIMINARY LIST OF SANCTION TARGETS AS PART OF THE CELLULAR PHONE DISPUTE AFTER THAT IT WILL HOLD A PUBLIC HEARING AND ISSUE A FINAL LIST A PROCESS THAT USUALLY TAKES THREE MONTHS 9403020131 940302 COMEX OPTIONS TRADERS SUE TO BLOCK NYMEX MERGER A GROUP OF MEMBERS OF NEW YORK'S COMMODITY EXCHANGE FILED SUIT AGAINST THEIR EXCHANGE AND THE NEW YORK MERCANTILE EXCHANGE SEEKING TO BLOCK A PROPOSED MERGER OF THE TWO COMMODITY MARKETS THE CLASSACTION LAWSUIT FILED IN NEW YORK STATE SUPREME COURT NEW YORK COUNTY ALSO SEEKS DAMAGES OF MORE THAN 18 MILLION FROM THE TWO EXCHANGES AND THEIR BOARDS THE COMPLAINT ALLEGES THAT THE PROPOSED MERGER PLAN IGNORES THE INTERESTS OF THE 200 COMEX TRADERS WHO OWN MEMBERSHIPS THAT ALLOW THEM ONLY TO TRADE OPTIONS CONTRACTS AT THE EXCHANGE WHICH IS BEST KNOWN FOR ITS PRECIOUSMETALS DERIVATIVES CONTRACTS UNDER THE MERGER PROPOSAL REGULAR COMEX MEMBERS WOULD RECEIVE 70 MILLION AS PART OF THE ACQUISITION OF THEIR EXCHANGE BY THE NYMEX BUT THE 200 COMEX OPTIONSTRADING MEMBERS WOULD RECEIVE NO COMPENSATION THE SUIT ALLEGES THE COMEX OPTION MEMBERS SEEK ASSURANCES THAT THEIR TRADING PRIVILEGES REMAIN INTACT IN THE MERGER PLAN AND THAT THEY BE COMPENSATED FOR ANY LOSS OF VALUE OF THEIR MEMBERSHIPS A SPOKESWOMAN FOR NYMEX AND COMEX WASN'T IMMEDIATELY AVAILABLE FOR COMMENT 9403020130 940302 MARKETING & MEDIA DUN & BRADSTREET UNIT ACCORD TAMPA FLA NIELSEN MARKETING RESEARCH A UNIT OF DUN & BRADSTREET CORP SAID IT AGREED IN PRINCIPLE TO TAKE A MINORITY STAKE IN EFFICIENT MARKET SERVICE INC AND COMMIT 60 MILLION TO EMS OVER A THREEYEAR PERIOD THE ACCORD ALSO CALLS FOR THE TWO MARKETRESEARCH COMPANIES TO JOINTLY DEVELOP AND MARKET SERVICES FOR THE CONSUMER PACKAGED GOODS INDUSTRY THE SERVICES ARE IN A GROWING AREA CALLED EFFICIENT CONSUMER RESPONSE WHICH IS DESIGNED TO TAKE HUNDREDS OF MILLIONS OF DOLLARS OUT OF THE COSTS OF MERCHANDISING FOOD AND OTHER CONSUMER PACKAGED GOODS DEERFIELD ILLBASED EMS SPECIALIZES IN GATHERING AND REPORTING SUPERMARKET SCANNER DATA ON A DAILY BASIS 9403020129 940302 WHO'S NEWS CENTOCOR CHAIRMAN'S SURGERY IS SUCCESSFUL MALVERN PA CENTOCOR INC SAID ITS CHAIRMAN HUBERT JP SCHOEMAKER LAST WEEK UNDERWENT SUCCESSFUL SURGERY TO REMOVE A BRAIN TUMOR THE BIOTECHNOLOGY COMPANY SAID THE TUMOR WAS DIAGNOSED FOLLOWING A ROUTINE PHYSICAL EXAM ON FEB 22 AND WAS COMPLETELY REMOVED ON FEB 24 AT THE UNIVERSITY OF PENNSYLVANIA DR SCHOEMAKER 43 YEARS OLD CONTINUES TO FUNCTION AS CHAIRMAN THE COMPANY SAID FOLLOWING DISCUSSIONS WITH HUBERT AND HIS DOCTORS THE OUTLOOK IS VERY ENCOURAGING AND HE EXPECTS TO BE BACK IN THE OFFICE VERY SHORTLY SAID DAVID P HOLVECK PRESIDENT AND CHIEF EXECUTIVE 9403020128 940302 INTERNATIONAL JAPANESE BANKER CHALLENGES TRADITION DERIVATIVES CHIEF BRINGS MITSUBISHI RECOGNITION PROFIT BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO EVEN AMONG JAPANESE BUSINESSMEN JAPANESE BANKERS ARE A CONSERVATIVE BUNCH AND THE BANKERS OF MITSUBISHI ARE THE MOST RESERVED OF ALL SO MITSUBISHI GENERAL MANAGER AKIRA WATANABE COMES AS A SHOCK HIS OPINION OF SUCH HALLOWED TRADITIONS AS CONSENSUS MANAGEMENT AND LIFETIME EMPLOYMENT A WASTE SAYS THE HEAD OF MITSUBISHI BANK LTD'S FASTGROWING DERIVATIVES UNIT INSTEAD OF HARMONY CHALLENGE PEOPLE HE SAYS TRADITION IS KIND OF BORING MR WATANABE WHO'S SNAPPED UP SO MANY DEALS THAT HE'S CALLED THE CROCODILE CLAIMS HIS 140PERSON WORLDWIDE TEAM IS THE MOST PROFITABLE SECTION OF THE 15500STRONG MITSUBISHI BANK THE TEAM MADE MITSUBISHI 300 MILLION LAST YEAR HE SAYS OR DOUBLE YEAREARLIER LEVELS AND CONTRIBUTED A SIGNIFICANT PART OF THE 32 BILLION IN MITSUBISHI'S OPERATING PROFIT IN THE YEAR ENDED MARCH 31 1993 THE BANK WON'T DISCLOSE EARNINGS ON DERIVATIVES BUT DOESN'T DISPUTE HIS CLAIM MITSUBISHI'S DERIVATIVES LEADERSHIP IS CERTAINLY DRAWING NOTICE MITSUBISHI HASN'T BEEN THIS PROFITABLE IN OTHER AREAS SAYS YOH KUROSAWA PRESIDENT OF ARCHRIVAL INDUSTRIAL BANK OF JAPAN LTD I DON'T KNOW HOW THEY MANAGED IT THE ANSWER LIES WITH MR WATANABE AND IT SAYS A LOT ABOUT WHAT'S HAPPENING AND WHAT NEEDS TO HAPPEN TO REVIVE JAPAN'S BANKS THE WORLD'S BIGGEST IN TERMS OF ASSETS IN MR WATANABE MITSUBISHI HAS A MAN WHO'S FOUND THE MISSION RESOURCES AND FREEDOM TO DO HIS JOB THAT'S NOT ALWAYS EASY INSIDE A JAPANESE BANK WHERE COMPETENT MANAGERS TRANSFER AMONG DEPARTMENTS WITHOUT GAINING SPECIALIZED EXPERTISE MR WATANABE WHO STARTED SMALL AND BUILT A REPUTATION INSIDE MITSUBISHI THROUGH STEADY PROFITABILITY HAS PERSUADED MITSUBISHI TO KEEP HIM IN THE SAME SECTION FOR 10 YEARS IF THEY WANT TO TRANSFER ME OUT THE TRADER SAYS OVER A SASHIMI LUNCH IN THE COMPANY DINING ROOM THEY'LL HAVE TO FIRE ME MR WATANABE IS ONE OF THE FEW JAPANESE AT THE CENTER OF THE FINANCIAL WORLD'S HOTTEST MARKET DERIVATIVES ARE FINANCIAL INSTRUMENTS LIKE FUTURES AND OPTIONS THAT FLUCTUATE ACCORDING TO THE PRICE MOVEMENTS OF OTHER GOODS SUCH AS CORN OR INTEREST RATES THEY CAN BE USED FOR SPECULATION OR TO INSURE AGAINST COMMODITY PRICE SWINGS WHILE PRODUCTS LIKE FUTURES HAVE BEEN AROUND A LONG TIME RECENT ADVANCES IN COMPUTER POWER AND THEORETICAL MATHEMATICS HAVE SHARPLY INCREASED FUTURES APPLICATIONS THEY HAVE ALSO MADE THE PRODUCTS SEEM VOLCANICDERIVATIVES TRADERS AN INDEPENDENT LOT HAVE BEEN KNOWN TO MAKE OR LOSE MILLIONS A YEAR THE DERIVATIVES OPERATIONS ARE A SHARP CONTRAST WITH THE USUAL JAPANESE BANKING TRADITION UNTIL NOW THESE BEHEMOTHS OF WORLD BANKING HAVE BEEN AVERSE TO USING VOLATILE PRODUCTS A DECISION THAT HAS PLACED THEM AT A COMPETITIVE DISADVANTAGE TO FOREIGN CHALLENGERS BUT WITH BAD DEBTS MOUNTING AND LOAN GROWTH STALLED JAPANESE BANKS ARE LOOKING FOR PROFITABLE NEW NICHES NO MATTER HOW UNTRADITIONAL MR WATANABE AND HIS TEAM INCLUDING SEVERAL HIGHLY PAID FOREIGNERS HE HAS POACHED TO EDUCATE HIS YOUNG JAPANESE BANKERS ARE PARTICULARLY UNUSUAL AT MITSUBISHI WHERE THE RIGHT SCHOOL AND A CONSERVATIVE ATTITUDE MEAN EVERYTHING THE IDEA IS TO GET THE FOREIGNERS TO TUTOR THE YOUNG STAFF BEFORE THEY'RE TOO TIED UP IN THE BANK'S TRADITIONAL ROLES THE ONLY WAY TO MOVE QUICKLY IN THIS BUSINESS IN JAPAN IS TO HIRE BRILLIANT YOUNG GUYS AND LURE IN FOREIGNERS HE SAYS HE'S ALSO BEEFED UP HIS SECTOR'S TECHNOLOGY SPENDING ABOUT 15 MILLION ANNUALLY IN RECENT YEARS ON COMPUTERS THAT'S A FAR CRY FROM 1983 WHEN MR WATANABE CAME BACK FROM AN AMERICAN ASSIGNMENT PRAISING THE NEW FINANCIAL TECHNOLOGY AFTER A YEAR OF BADGERING MITSUBISHI MADE HIM THE HEAD OF ITS NEW DERIVATIVES DEPARTMENT STAFF SIZE ONE YOUNG PEOPLE UNDERSTAND THE TECHNOLOGY BUT IN JAPAN OLDER PEOPLE CONTROL THE RESOURCES SAYS MASAMICHI YAMADA GENERAL MANAGER OF CORPORATE PLANNING AT MITSUBISHI AND A WATANABE PATRON IT TOOK A LONG TIME TO UNDERSTAND THE RISK AND POTENTIAL AFTER A YEAR OF 16HOUR DAYS INCLUDING MIDNIGHT TRADES FROM HIS LIVING ROOM MR WATANABE GOT THE BANK TO AGREE TO GIVE HIM THREE ASSISTANTS HIS DEPARTMENT WAS OFF AND RUNNING THE BATTLE FOR ACCEPTANCE IS STILL QUIETLY GOING ON INSIDE MITSUBISHI LATE LAST YEAR MR WATANABE PAID US ACCOUNTING FIRM ARTHUR ANDERSEN 300000 TO CONVINCE OTHER PEOPLE IN THE BANK WHO DON'T UNDERSTAND US THAT HE'S NOT RECKLESS BUT MR WATANABE IS TURNING HEADS INSIDE THE BANK AND BEYOND IN ANOTHER SLAP TO TRADITION HE HAS WON SUCH CLIENTS AS MITSUI & CO WHICH BELONGS TO AN ARCHRIVAL KEIRETSU OR BUSINESS NETWORK THAT USED TO BE UNTHINKABLE BUT IN ECONOMICALLY STRESSED JAPAN PRICE AND SERVICE ARE STARTING TO MATTER AS MUCH AS TRADITION THERE'S SOMETHING DIFFERENT IN THE AIR TOO OXYGEN SOME STAFF COMPLAINED ABOUT HEAVY TOBACCO USE SO NOW THERE'S NO SMOKING DURING REGULAR BUSINESS HOURS EVEN FOR THE BOSS A MIRACLE HERE IN THIS UNCLOUDED LIGHT MR WATANABE AND HIS CREW BELIEVE THEY ARE HELPING TO FIND A WAY OUT FROM THE PROBLEMS PLAGUING JAPANESE BANKS THE BIGGEST COMMERCIAL BANKS HAVE CLOSE TO 4 TRILLION IN ASSETS BUT AN ESTIMATED 140 BILLION IN BAD LOANS AND NEW DEBTS OUTPACE WRITEOFFS THEIR CORE LENDING BUSINESS IS GROWING AT AN ANNUAL RATE OF JUST 05 TOO AS CUSTOMERS TURN TO MARKETBASED FINANCING THERE'S ALSO A NEW URGENCY FOR DERIVATIVES FROM JAPANESE BUSINESSES BECAUSE INTEREST RATE SWINGS ARE CHALLENGING THE ECONOMY AND COMPANIES ARE STRAPPED FOR CASH JAPANESE COMPANIES THAT TOOK FIVEYEAR LOANS IN 1990 AT 9 INTEREST NOW SEE THE COMPETITION BORROWING FROM COMMERCIAL BANKS AT 3 THAT KIND OF ADVANTAGE CAN BE DEVASTATING IN JAPAN HOME OF THE THIN PROFIT MARGIN FOR ALL OF HIS UNTRADITIONAL WAYS MR WATANABE STILL COZIES UP TO SOME JAPANESE TRADITIONS AMONG THEM REGIMENTED EXECUTIVE PAY HIS AMERICAN DERIVATIVES TRADERS ARE PAID MILLIONS OF DOLLARS BUT MR WATANABE TAKES HOME 18 MILLION YEN 170000 A YEAR JUST LIKE THE OTHER 45YEAROLD CAREER MANAGERS AT MITSUBISHI 9403020127 940302 TEXAS JOURNAL ECONOMIC FOCUS FOCUS ON NAFTA IT HAD TO HAPPEN A TALE OF NAFTA DISENCHANTMENT BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL CONTRARY TO POPULAR BELIEF NOT EVERYBODY IN TEXAS IS THRILLED WITH THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WENT INTO EFFECT JAN 1 IN FACT WITH ALL THE ADVANCE HYPE SOME PEOPLE WERE BOUND TO BE DISAPPOINTED TAKE EDWARD LOKE OWNER OF TRELLTEX INC A HOUSTON WHOLESALER OF INDUSTRIAL RUBBER PRODUCTS AS RECENTLY AS LAST YEAR MR LOKE COULDN'T HAVE BEEN MORE EXCITED ABOUT NAFTA WHICH AIMS TO CREATE A GIGANTIC FREETRADE ZONE OUT OF MEXICO THE US AND CANADA MR LOKE HAD ALREADY STARTED PROSPECTING IN MEXICO FOR CUSTOMERS AND HAD LINED UP SEVERAL BUYERS FOR PRODUCTS INCLUDING RUBBER HOSES THAT ARE USED TO UNLOAD CHEMICALS FROM BARGES AND TRUCKS LAST YEAR SALES TO MEXICO ACCOUNTED FOR ABOUT 150000 OF TRELLTEX'S 53 MILLION IN REVENUE WHEN ANYBODY ASKED ME WHAT I THOUGHT ABOUT NAFTA I SAID GOLLY IT'S THE GREATEST THING SINCE SLICED BREAD BECAUSE WE'RE IDEALLY SITUATED GEOGRAPHICALLY TO SERVE CLIENTS IN MEXICO' MR LOKE RECALLS BUT NOW HE'S DEEPLY DISAPPOINTED AND FEARS THAT HIS MEXICAN BUSINESS WILL ALL BUT DRY UP THE REASON NAFTA'S GOAL IS TO LOWER TRADE BARRIERS FOR PRODUCTS THAT ARE MANUFACTURED IN THE SIGNATORY COUNTRIES DISTRIBUTORS AND OTHER MIDDLEMEN DON'T GET A TARIFF BREAK ON PRODUCTS MADE OUTSIDE THE THREE COUNTRIES THAT'S A PROBLEM FOR MR LOKE'S 13YEAROLD OPERATION AND THE 10 PEOPLE IT EMPLOYS TO BE ABLE TO COMPETE FOR SALES WITH BIG MANUFACTURERS SUCH AS GOODYEAR TIRE & RUBBER CO HE BUYS HIS GOODS FROM KOREAN MALAYSIAN AND ITALIAN MANUFACTURERS AS WELL AS US AND MEXICAN PRODUCERS BUYING STRICTLY FROM THE US AND MEXICO WOULD COST TOO MUCH AND WOULD CAUSE HIM SUPPLY PROBLEMS THUS EVEN THOUGH NAFTA ON JAN 1 CUT TARIFFS ON THE GOODS HE SELLS TO MEXICO TO 75 FROM 15 AND WILL EVENTUALLY PHASE THEM OUT THE BENEFIT ONLY APPLIES TO THE PRODUCTS THAT ORIGINATE IN MEXICO THE US OR CANADA AND THAT MEANS MR LOKE'S MEXICAN CUSTOMERS NOW ARE FORCED TO PAY 15 DUTIES FOR MOST OF HIS PRODUCTS WHILE HIS US COMPETITORS CAN SELL THEM WITH 75 DUTIES WE HAVE CONTINUED TO PROCESS A FEW ORDERS BUT EACH TIME WE DO OUR CUSTOMERS IN MEXICO ARE SAYING WE'RE NOT GOING TO BE ABLE TO CONTINUE THIS SAYS MR LOKE WHILE NAFTA MIGHT BE A WONDERFUL BOON TO US MANUFACTURERS IT REPRESENTS A MAJOR CHALLENGE TO MANY TEXAS DEALERS AND DISTRIBUTORS AND WHOLESALERS LIKE MYSELF HURTING THE HIGHWAYS ANOTHER CASUALTY OF NAFTA COULD WELL BE TEXAS' HIGHWAYS ACCORDING TO A NEW STUDY BY THE UNIVERSITY OF TEXAS CENTER FOR TRANSPORTATION RESEARCH MEXICAN 18WHEEL TRUCKS CONSUME PAVEMENT AT ROUGHLY TWICE THE RATE OF US TRUCKS WHEN EACH CARRY THE LEGAL MAXIMUM WEIGHT THAT'S BECAUSE THE MAXIMUM IN MEXICO IS 91300 POUNDS COMPARED WITH 80000 POUNDS IN TEXAS WITHOUT A SPECIAL PERMIT BUT IN REAL LIFE THE DIFFERENCE IS EVEN MORE PROFOUND BECAUSE WEIGHT RESTRICTIONS GENERALLY AREN'T ENFORCED SOUTH OF THE BORDER ACCORDING TO A RECENT STUDY BY THE MEXICAN TRANSPORT INSTITUTE WHICH WEIGHED MORE THAN 117000 TRUCKS TRAVELING MEXICAN HIGHWAYS THE AVERAGE 18WHEELER ACTUALLY WAS 40 OVERLOADED CARRYING A GROSS VEHICLE WEIGHT OF MORE THAN 120000 POUNDS THE UNIVERSITY OF TEXAS REPORT NOTES THAT IF US TRUCKERS OPERATED AT SIMILAR OVERCAPACITY INTERSTATE HIGHWAYS WOULD HAVE A LIFE SPAN OF JUST 14 YEARS INSTEAD OF THE CURRENT 40YEAR DESIGN LIFE SO WHAT DOES ALL THIS HAVE TO DO WITH NAFTA UNDER TERMS OF THE AGREEMENT MOTOR CARRIERS OF BOTH THE US AND MEXICO WILL BE ALLOWED TO MAKE INTERNATIONAL SHIPMENTS TO CONTIGUOUS BORDER STATES BY DECEMBER OF NEXT YEAR AND BY DECEMBER 1999 THEY WILL BE ABLE TRAVEL BEYOND THE BORDER STATES BUT WON'T MEXICAN DRIVERS BE SUBJECT TO WEIGHT RESTRICTIONS IN THE US ROBERT HARRISON ASSOCIATE DIRECTOR OF THE CENTER FOR TRANSPORTATION RESEARCH SAYS THAT'S AN OPEN QUESTION THE PROBLEM IS THEY IGNORE THEIR OWN LAWS IN THEIR OWN COUNTRY HE SAYS THE QUESTION IS WHETHER THEY'LL VOLUNTARILY FOLLOW US LAWS SAN ANTONIO BECKONS IN A SERIES OF NATIONAL ADVERTISEMENTS IN THIS NEWSPAPER IN DECEMBER THE SAN ANTONIO CONVENTION AND VISITORS BUREAU ISSUED AN INVITATION TO CORPORATIONS THAT WANTED TO LEARN MORE ABOUT NAFTA WHY NOT HAVE A MEETING IN THE ALAMO CITY AFTER ALL THE ADS NOTED SAN ANTONIO SPEAKS TRADE WITH MEXICO SO FLUENTLY THERE ARE PEOPLE WHO ARE CALLING US THE HONG KONG OF NORTH AMERICA' AS PART OF THE PROMOTION THE CITY'S HOTELS OFFERED STELLAR VALUES TO ANYONE HOLDING A MEETING SO HAVE ANY MEETINGS BEEN BOOKED NOT YET SAYS ALICIA VARGAS DIRECTOR OF MARKETING CONVENTION SALES FOR THE BUREAU SHE ADDS HOWEVER THAT WE'VE GOTTEN A GOOD NUMBER OF INQUIRIES NOTHING TO READ ONE OF THE BIGGEST HURDLES FOR ANYONE WHO WANTS TO UNDERSTAND THE NEW TRADE AGREEMENT IS FINDING A COPY OF THE NEW TRADE AGREEMENT THE GOVERNMENT BOOKSTORE IN DALLAS FOR INSTANCE SOLD OUT ITS TOTAL SUPPLY 81 COPIES AT 40 EACH DURING A 10DAY PERIOD IN DECEMBER SINCE EARLY JANUARY IT HAS HAD 100 MORE OF THE TWOVOLUME MONSTERS ON BACK ORDER FROM THE GOVERNMENT PRINTING OFFICE I THINK THEY UNDERESTIMATED DRASTICALLY HOW INTERESTED PEOPLE WOULD BE SAYS TOM FAULKENBURY THE BOOKSTORE'S MANAGER WHO ADDS THAT ROSS PEROT'S UNITED WE STAND ORGANIZATION WHICH LOBBIED AGAINST THE ACCORD SNAPPED UP MANY OF THE INITIAL COPIES ANOTHER PROBLEM GETTING A COPY OF THE OFFICIAL SCHEDULE OF MEXICAN TARIFFS THE DALLAS BOOKSTORE SOLD OUT ALL FOUR OF ITS COPIES THE FIRST DAY AND IS WAITING FOR A NEW ORDER TO COME IN TEXAS VS CLINTON TEXAS BANKERS ARE BULLISH ON TEXAS AND BEARISH ON BILL CLINTON A NEW SURVEY BY GRANT THORNTON SHOWS THE JANUARY SURVEY OF 130 BANKERS AT SMALL AND MIDSIZE TEXAS BANKS BY THE ACCOUNTING AND CONSULTING FIRM SHOWS THAT THREEQUARTERS BELIEVE THAT THE REGIONAL ECONOMY IS EITHER ENTERING OR WELL INTO A RECOVERY NEARLY TWOTHIRDS EXPECT INFLATION TO INCREASE ONLY SOMEWHAT THIS YEAR AND 82 EXPECT JUST A MODEST RISE IN INTEREST RATES BUT THE RESPONDENTS DON'T GIVE MUCH CREDIT TO THE PRESIDENT MORE THAN FOUR BANKERS IN FIVE DESCRIBE MR CLINTON'S PERFORMANCE AS EITHER ONLY FAIR OR POOR SO FAR 9403020126 940302 BUSINESS BRIEFS TOLL BROTHERS INC'S DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 500000 OF ITS COMMON SHARES AND UP TO 5 MILLION OF THREE OUTSTANDING NOTE ISSUES AMERICAN TELEPHONE & TELEGRAPH CO SIGNED A FIVEYEAR CONTRACT VALUED AT 28 MILLION TO SUPPLY CAPITAL CITIES/ABC INC WITH LONG DISTANCE COMMUNICATIONS SATELLITE AND VIDEO SERVICES FIRST KENTUCKY BANCORP WILL BE ACQUIRED BY PEOPLES FIRST CORP IN AN ALLSTOCK PURCHASE VALUED AT ABOUT 265 MILLION COLUMBIA/HCA HEALTHCARE CORP ACQUIRED A 50 INTEREST IN WINTER PARK MEMORIAL HOSPITAL WINTER PARK FLA TERMS WEREN'T DISCLOSED CORNING INC SIGNED AN AGREEMENT TO SELL A GLASSTUBING FACILITY TO SCHOTT CORP THE US UNIT OF SCHOTT GROUP OF GERMANY TERMS WEREN'T DISCLOSED 9403020125 940302 WHO'S NEWS CAROLINA STEEL CORP CAROLINA STEEL CORP GREENSBORO NC D LEONARD WISE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE PENDING CONFIRMATION OF THE COMPANY'S REORGANIZATION PLAN CAROLINA STEEL IS OPERATING UNDER FEDERAL BANKRUPTCY PROTECTION MR WISE 59 YEARS OLD IS AN INDEPENDENT CONSULTANT AND HAS HELD SEVERAL SENIORMANAGEMENT AND BOARD POSITIONS IN THE STEEL INDUSTRY A HEARING ON CAROLINA STEEL'S REORGANIZATION PLAN WILL BE HELD IN APRIL THE CURRENT CHIEF EXECUTIVE RICHARD J PURICELLI 56 IS SERVING ON AN INTERIM BASIS AND WILL REMAIN WITH THE MANAGEMENT COMPANY OF GRISANTI GALEF & GOLDRESS AFTER MR WISE ASSUMES HIS POST 9403020124 940302 TRAVEL DENVER'S NEW AIRPORT ALREADY MIRED IN CONTROVERSY WON'T OPEN NEXT WEEK BY BRIDGET O'BRIAN AND MARJ CHARLIER STAFF REPORTERS OF THE WALL STREET JOURNAL DENVER AGAIN DELAYED THE OPENING OF THE HUGE AND CONTROVERSIAL 32 BILLION DENVER INTERNATIONAL AIRPORT RAISING AGAIN THE COST OF FLYING INTO AND OUT OF THE MILE HIGH CITY THE COST OF THAT DELAY TO MAY 15 FROM MARCH 9 IS ESTIMATED AT 100 MILLION WHICH WILL BE BORNE BY THE NEW AIRPORT'S TENANTS THE REASON FOR THE DELAY THE AIRPORT'S THIRD IS LINGERING PROBLEMS WITH THE 200 MILLION BAGGAGE SYSTEM WHICH HAS EXPERIENCED POWER SURGES THAT ENGINEERS HAVEN'T BEEN ABLE TO TRACE THE POSTPONEMENT ONLY REINFORCES THE NOTION THAT DIA IS OUT OF STEP WITH THE AIRLINE INDUSTRY INDEED THE AIRPORT'S VERY EXISTENCE FLIES IN THE FACE OF SUCH INDUSTRY TRENDS AS THE SHRINKING OF BIG HUBS AND COSTCUTTING BY LARGE CARRIERS TO COMPETE WITH LOWCOST AIRLINES WITH COSTS PER PASSENGER COMING PERILOUSLY CLOSE TO 20 DIA WILL BECOME THE MOST EXPENSIVE AIRPORT IN THE NATION THE PERPASSENGER COST AT DENVER STAPLETON AIRPORT IS ABOUT 8 AT A TIME WHEN AIRLINES ARE TAKING LETTUCE LEAVES OUT OF SALADS TO SAVE MONEY 20 IS A BIG DIFFERENCE SAYS MICHAEL BOYD A DENVER AVIATION CONSULTANT ALREADY THE ADDITIONAL COSTS AT THE NEW AIRPORT HAVE DRIVEN CONTINENTAL AIRLINES TO REDUCE PLANNED FLIGHT OPERATIONS AT DIA BY 23 EFFECTIVE NEXT WEEK CONTINENTAL HAS ALREADY DECIDED NOT TO MOVE ITS MAINTENANCE OPERATIONS TO THE NEW AIRPORT FURTHER FLIGHT CUTS ARE EXPECTED LATER THIS YEAR AND MANY BELIEVE CONTINENTAL WILL EVENTUALLY STOP MAINTAINING A HUB IN DENVER A CONTINENTAL SPOKESMAN WOULDN'T COMMENT OTHER AIRLINES ARE ECONOMIZING BY CUTTING BACK FLIGHTS IN AND OUT OF DENVER OR CONTRACTING OUT MAINTENANCE WORK THEY ONCE DID INHOUSE LOWCOST CARRIERS ARE LIKELY TO AVOID DENVER OR AT LEAST REASSESS HOW THEY OPERATE THERE MARK AIR WHICH HAS 22 FLIGHTS A DAY IN AND OUT OF DENVER NOW WILL RAISE FARES IN ORDER TO KEEP FLYING INTO DIA WE HAVE TO PASS ON THE COST TO THE PASSENGERS SAID A SPOKESMAN FOR THE ANCHORAGE ALASKABASED CARRIER IT ISN'T CLEAR YET WHETHER MORRIS AIR WHICH WAS BOUGHT BY LOWCOST SOUTHWEST AIRLINES LAST YEAR WILL CONTINUE FLYING INTO DIA SOUTHWEST PULLED OUT OF DENVER IN 1985 BECAUSE OF WEATHER AND AIR TRAFFIC CONTROL PROBLEMS MEANWHILE UNITED THE ONLY OTHER AIRLINE WITH A HUB IN DENVER IS INCREASING ITS FLIGHTS INTO AND OUT OF DENVER ITS NEW OPERATIONS AT DIA WILL COST 100 MILLION MORE A YEAR THAN AT STAPLETON WITH LESS COMPETITION FROM OTHER AIRLINES THERE WILL BE LITTLE PRESSURE ON UNITED A UNIT OF UAL CORP TO REDUCE FARES IN ADDITION TO COMPLAINTS ABOUT HIGHER AIR FARES FOR DENVER PASSENGERS SOME PEOPLE BELIEVE THE DIA ADMINISTRATION HASN'T BEEN FORTHRIGHT ABOUT THE TOTAL COSTS OF MAINTENANCE AND OPERATIONS OF THE NEW AIRPORT DIA OFFICIALS HOWEVER SAY THE DIFFERENCE IN COSTS BETWEEN DIA AND STAPLETON IS MINOR AND THE BENEFITS ARE GREAT DELAYS WILL BE REDUCED BY THE WIDESPACED RUNWAYS SAVING THE AIRLINES 100 MILLION A YEAR AND THE AUTOMATED BAGGAGE SYSTEM ONCE IT WORKS WILL SPEED UP CHECKIN THE CITY MAINTAINS WE WILL HAVE MUCH MORE EFFICIENT AND MODERN FACILITIES SAYS JIM DELONG DIA AVIATION DIRECTOR TO BE SURE DENVER'S AIRPORT NEEDED UPGRADING IN THE FOURTH QUARTER OF 1993 STAPLETON HAD THE MOST DELAYS IN THE NATION ITS 1950S RUNWAYS ARE TOO CLOSE TOGETHER FOR TODAY'S AIRCRAFT TO LAND SIMULTANEOUSLY IN LOW VISIBILITY THE NEW AIRPORT ITSELF RISING OUT OF THE PLAINS WITH A HUGE WHITEPEAKED ROOF THAT MIRRORS THE ROCKY MOUNTAINS IN THE DISTANCE DOESN'T LOOK LIKE A PUBLIC WORKS PROJECT THE INSIDE WAS DECORATED WITH SHINY TERRAZZO FLOORS INLAID WITH FOUR DIFFERENT COLORS OF MARBLE IN THE SHAPE OF MOUNTAIN PEAKS A SOARING FOURSTORY ATRIUM IS MADE OF GLASS AND CHROME AND PUNCTUATED BY COLORFUL MODERN ART BY LOCAL AND WESTERN ARTISTS BUT IN DENVER GRUMBLING ABOUT THE DISTANCE TO THE NEW AIRPORT IT'S 28 MILES NORTHEAST OF DOWNTOWN AND THE EXTRA COST OF FLYING IS AS COMMON AS COMPLAINING ABOUT LONG LIFT LINES AT SKI RESORTS PARKING COSTS WILL GO UP AS WILL CAB FARE TO THE FACILITY HERE YOU HAVE AN AIRPORT THAT HAS FEWER GATES THAN THE ONE WE HAD BEFORE AND IT TAKES A HALF HOUR LONGER TO GET TO THAN THE OLD ONE SAYS DENVER MINING CONSULTANT HANS VON MICHAELIS MAYBE IT WILL BRING BENEFITS BUT IT SEEMS AN AWFUL LOT TO PAY FOR A MARGINAL IMPROVEMENT BUT BY FAR THE BIGGEST CONCERN IS THE COST WHEN DIA OPENS IT FACES AN ANNUAL DEBT SERVICE OF 280 MILLION AND OPERATING COSTS OF ABOUT 130 MILLION FOR A TOTAL ANNUAL COST OF 410 MILLION STAPLETON COST ABOUT 120 MILLION A YEAR AND PROVIDED THE CITY WITH ABOUT 30 MILLION IN ANNUAL PROFITS WITH 1995 PASSENGER TRAFFIC TO DENVER EXPECTED TO FALL TO 145 MILLION THAT WILL COST AIRLINES ABOUT 25 A PASSENGER MR DELONG HOWEVER SAYS THE NEW AIRPORT WILL SAVE THE AIRLINES UP TO 120 MILLION BECAUSE OF FEWER FLIGHT DELAYS HE ALSO EXPECTS TO REAP 40 MILLION FROM A PASSENGER FACILITY CHARGE OF 3 A HEAD THAT WILL BE ADDED ONTO TICKET PRICES THUS HE REASONS DIA'S PER PASSENGER FEE WILL BE ONLY 15 BUT OPERATIONS AND MAINTENANCE COSTS HAVE BEEN UNDERESTIMATED BY THE CITY SAY JIM BUCK AND PAUL EARLE RETIRED DENVER ENGINEERS WHO HAVE TURNED STUDYING DIA INTO NONPAYING SECOND CAREERS DIA'S RUNWAY AND ROAD SURFACES ARE SIX TIMES BIGGER THAN STAPLETON'S BUT THE CITY HAS ACQUIRED ONLY 25 MORE SNOWREMOVAL EQUIPMENT TO HANDLE THEM THEY POINT OUT SNOW WON'T SLIDE OFF THE TEFLONCOATED TENT ROOF MAINTAINS MR EARLE WHO TRAVELED AROUND THE COUNTRY TO EXAMINE SNOW REMOVAL PROBLEMS OF SIMILAR ROOFS SAYS PHIL BURGESS EXECUTIVE DIRECTOR OF THE CENTER FOR THE NEW WEST A THINK TANK FUNDED BY BUSINESS ALMOST EVERY PROJECTION THEY'VE MADE THERE HAS TURNED OUT TO BE WRONG MY REAL CONCERN IS THERE WILL HAVE TO BE A PUBLIC BAILOUT OF THIS THING ADDITIONAL PROBLEMS AND COSTS AT DIA COULD EASILY SEND PASSENGERS TO OTHER AIRPORTS SUBURBAN RESIDENTS SOUTH OF DENVER WOULDN'T HAVE TO DRIVE MUCH FARTHER TO TAKE FLIGHTS FROM COLORADO SPRINGS AND FORT COLLINS MAY TEMPT NORTHERN SUBURBANITES THE HIGHER FARES AND EXTRA 20 TO TAKE A VAN TO VAIL MAY DIVERT SKIER TRAFFIC TO DIRECT ROUTES TO THE STATE'S SKI RESORTS ALREADY 13 MILLION SKIERS BYPASS DENVER AND FLY DIRECTLY TO COLORADO SKI RESORTS EACH SEASON THE NEW AIRPORT WAS ORIGINALLY SCHEDULED TO OPEN LAST OCT 29 OFFICIALS AREN'T SPECULATING ABOUT WHETHER THIS IS THE LAST DELAY BUT WALL STREET WAGS HAVE THEIR DOUBTS DIA THEY JOKE STANDS FOR DONE IN AUGUST 9403020123 940302 TEXAS INSTRUMENTS PREDICTS SLOWER WORLD CHIP MARKET DALLAS TEXAS INSTRUMENTS INC SAID IT EXPECTS THE WORLDWIDE SEMICONDUCTOR MARKET TO GROW 17 THIS YEAR WELL BELOW LAST YEAR'S 29 JUMP FED BY THE BOOM IN PERSONAL COMPUTERS THE ELECTRONICS COMPANY IN A BRIEFING TO FINANCIAL ANALYSTS CHARACTERIZED THE NEW PROJECTION AS A SIGN OF A STABLE CHIP MARKET WHICH FOR MOST OF THE PAST TWO DECADES HAS GROWN AT AN AVERAGE RATE OF ABOUT 14 TO 15 A YEAR IT'S JUST A NATURAL SLOWDOWN SAID VLADI CATTO THE COMPANY'S CHIEF ECONOMIST GROWTH RATES OF 30 ARE JUST NOT SUSTAINABLE ANALYSTS SAID THEY WEREN'T OVERLY WORRIED BY MR CATTO'S LOWER PROJECTION CONSIDERING THE CURRENT SIGNS OF HEALTH IN THE CHIP MARKET AND TI'S PENCHANT FOR CONSERVATIVE FORECASTING WE REALLY DO HAVE A STRONG MARKET AND A STRONG ECONOMY SAID MONA E ERAIBA A SEMICONDCUTOR ANALYST AT GRUNTAL & CO IN NEW YORK IF TI SAYS IT'S 17 THAT PROBABLY MEANS IT'S GOING TO BE 22 INDEED EVEN MR CATTO ACKNOWLEDGES THAT TI VASTLY UNDERESTIMATED THE STRENGTH OF LAST YEAR'S PC INDUSTRY AS A RESULT OF THOSE LOWER ESTIMATES TI PREDICTED THE WORLDWIDE CHIP BUSINESS WOULD GROW BY 17 TO 70 BILLION IN 1993 ACTUALLY THE MARKET GREW BY 29 TO 772 BILLION 9403020122 940302 WORLD MARKETS EUROPEAN STOCKS PLUNGE ON INTERESTRATE FEARS TOKYO PRICES ADVANCE 11 ON ECONOMIC DATA A WALL STREET JOURNAL NEWS ROUNDUP MANY EUROPEAN STOCK MARKETS WHICH WERE BUOYED MONDAY ON SPECULATION ABOUT A BROAD ROUND OF INTERESTRATE REDUCTIONS REVERSED COURSE YESTERDAY LONDON SHARE PRICES DIVED 17 AFTER FEARS THAT US INTEREST RATES MAY RISE UNDERMINED BONDMARKET SENTIMENT AND SPILLED INTO EQUITIES FRANKFURT EQUITIES SLUMPED 12 IN NERVOUS TRADING WHILE PARIS STOCKS TUMBLED 25 IN REACTION TO US DATA THAT WIDELY STARTLED FINANCIAL MARKETS TOKYO STOCKS ADVANCED 11 TUESDAY THE FOURTH GAIN IN A ROW TO THEIR BEST FINISH IN THREE WEEKS ON GREATER INVESTOR OPTIMISM ABOUT AN ECONOMIC RECOVERY FOR JAPAN EVEN THOUGH A SAMPLING BY THE COUNTRY'S CENTRAL BANK SHOWED BUSINESSES AREN'T SO SURE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11625 DOWN 049 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8155 UP 123 OR 15 WITH NIPPON SUISAN OF JAPAN POSTING A 34 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 7210 DOWN 199 OR 27 WITH CHIRON OF THE US SLIDING 53 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLUMPED 575 POINTS TO 32706 ALSO THE INTRADAY LOW AND ONLY ABOUT A DOZEN OF THESE ISSUES MANAGED TO GAIN THE FT 30STOCK INDEX SANK 281 POINTS OR 11 TO 25360 VOLUME WAS 7092 MILLION SHARES COMPARED WITH 7054 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX REACHED A HIGH OF 33288 BUT THE MARKET WAS SPOOKED BY ANXIETY ABOUT HIGHER US INTEREST RATES THAT WAS FUELED BY NEW US ECONOMIC DATA THAT SHOWED MANUFACTURING IS GENERALLY DECLINING AND THAT REVISED GROSS DOMESTIC PRODUCT EXPANDED AT A SEASONALLY ADJUSTED ANNUAL RATE OF 75 IN THE FOURTH QUARTER THE FASTEST PACE SINCE THE 1984 FIRST QUARTER A RATE OF ABOUT 67 HAD BEEN ANTICIPATED THUS LONDON INVESTORS EXPECTED THE US FEDERAL RESERVE TO TIGHTEN MONETARY POLICY WHICH COULD HURT THE BOND AND STOCK MARKETS IN TURN MEANWHILE THE GERMAN BUNDESBANK QUASHED HOPES OF SIGNIFICANTLY LOWER INTEREST RATES BY CUTTING ITS REPURCHASING RATE TO 597 FROM 6 A REDUCTION TO AS DEEP AS 575 HAD BEEN EXPECTED IN FRANKFURT THE DAX 30STOCK INDEX RETREATED 2452 POINTS TO 206705 AS MOST PLAYERS FLED TO THE SIDELINES INVESTORS WERE WORRIED ABOUT A RANGE OF FACTORS INCLUDING WEAKER US TREASURYS AND EQUITIES LOWER EXPECTATIONS FOR ANOTHER IMMEDIATE EASING OF KEY GERMAN INTEREST RATES AND DEPRESSED FUTURES TRADING IN PARIS STOCKS' SHARP FALL WAS LED BY FUTURES TRADING AND SELLING WAS AGGRAVATED BY EARLY TUMBLES IN US STOCKS AND BONDS FOLLOWING THE RELEASE OF THE US ECONOMIC DATA MANY PARIS INVESTORS WERE SURPRISED BY THE EXTENT OF THE FRENCH MARKET'S DROP EVEN THOUGH THEY HAD EXPECTED A CORRECTION FOLLOWING MONDAY'S 24 RALLY THE MOOD TURNED BEARISH WHEN THE GERMAN CENTRAL BANK SHAVED ITS REPO RATE LESS THAN EXPECTED AND THE US DATA TRIGGERED FEARS OF MORE INTERESTRATE INCREASES IN AMSTERDAM EQUITIES FELL SHARPLY UNDERMINED BY A WEAK US DOLLAR IN FOREIGNEXCHANGE DEALINGS AND LOWER STOCK PRICES ABROAD DISAPPOINTMENT ABOUT THE MARGINAL GERMAN RATE EASING EXPANDED NEGATIVE SENTIMENT IN THE NETHERLANDS AGGRAVATED WHEN THE DUTCH CENTRAL BANK NOT ONLY DECLINED TO LOWER RATES BUT INDICATED IT WOULD MAINTAIN CURRENT LEVELS FOR AT LEAST A WEEK IN MADRID STOCKS HAD SHARP LOSSES AS THE BOURSE WAS DAMPED BY DROPS ON SPANISH AND EUROPEAN BOND MARKETS BECAUSE OF THE PROSPECT OF HIGHER US INTEREST RATES IN STOCKHOLM SHARES SLUMPED AS THE MARKET WAS DEPRESSED BY RISING INTEREST RATES IN SWEDEN AND MAJOR MARKETS ABROAD AN AGREEMENT SWEDEN REACHED YESTERDAY ON TERMS FOR EVENTUAL MEMBERSHIP IN THE EUROPEAN UNION DIDN'T AFFECT THE MARKET IN ZURICH STOCKS FELL PULLED DOWN BY FUTURES TRADING IN BRUSSELS PRICES RETREATED FROM HIGHS TO CLOSE MIXED AND BANKS AND INSURERS MOSTLY FELL DESPITE A BELGIAN CENTRAL BANK CUT TO 625 FROM 64 IN ITS MONEYMARKET LENDING RATE IN MILAN SHARES DRIFTED LOWER AS SOME INVESTORS LIGHTENED POSITIONS AHEAD OF ITALIAN ELECTIONS AT THE END OF THIS MONTH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 19382 POINTS MONDAY CLIMBED 21942 TO 2021662 NEAR THE INTRADAY HIGH OF 2024092 IN TRADING WEDNESDAY THE NIKKEI INDEX SAGGED 30933 POINTS TO CLOSE THE MORNING SESSION AT 1990729 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 500 MILLION SHARES UP FROM 467 MILLION SHARES ON MONDAY GAINERS OVERWHELMED LOSERS 780269 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SURGED 2184 POINTS MONDAY ROSE 1377 TO 164548 THE NIKKEI STAYED ABOVE THE 20000 PERCEIVED SUPPORT LEVEL ALL DAY INVESTORS WERE ENCOURAGED BY JAPANESE ECONOMIC DATA RELEASED MONDAY AND TUESDAY THAT SHOWED SURGING HOUSING STARTS RISING INDUSTRIAL PRODUCTION AND IMPROVING LABOR MARKET CONDITIONS THE QUARTERLY TANKAN SURVEY BY THE BANK OF JAPAN THAT GAUGES BUSINESS SENTIMENT WAS IN LINE WITH EXPECTATIONS CORPORATE CONFIDENCE WAS FLAT COMPARED WITH THE NOVEMBER TALLY YET WHILE BUSINESS PESSIMISM DIDN'T GROW IT DIDN'T DIMINISH EITHER AND AS THE JAPANESE BOND MARKET WEAKENED TO LEVELS UNSEEN FOR SEVERAL MONTHS RISING BOND YIELDS COULD BE BEARISH FOR EQUITIES IN HONG KONG SHARES SPUTTERED DOWN 25 DESPITE POSITIVE CORPORATE EARNINGS THE MAIN INDEX FELL FROM THE OPENING AND AT ONE POINT WAS DOWN 32 RALLIES LATELY SUCH AS THE ONE ON MONDAY HAVE MET WITH SELLING STOCKS ROSE 31 MONDAY FOLLOWING A 67 DECLINE FOR ALL OF LAST WEEK THE MARKET ON TUESDAY WAS CONCERNED THAT DIFFERENCES BETWEEN BRITAIN AND CHINA ABOUT BEIJING'S TAKING CONTROL OF THE BRITISH COLONY IN 1997 WOULD SPILL OVER INTO ECONOMIC AREAS AND SENTIMENT DIDN'T IMPROVE ON THE SCHEDULING OF CHINESE AND HONG KONG OFFICIALS THIS WEEK TO DISCUSS THE TERRITORY'S NEW AIRPORT PROJECT AS FINANCING PROPOSALS AREN'T EXPECTED TO GAIN QUICK ACCEPTANCE FINANCIAL STOCKS PLUNGED 75 TUESDAY IN SINGAPORE STOCKS LOST 13 AS INSTITUTIONS TOOK PROFITS IN CAUTIOUS QUIET DEALINGS IN KUALA LUMPUR PRICES DROPPED 11 HAMPERED BY STEADY PROFITTAKING ESPECIALLY AMONG BLUE CHIPS AS FUND MANAGERS NARROWED THEIR PORTFOLIOS IN THE LACKLUSTER MARKET IN MANILA EQUITIES SANK 37 TO POST A NEW LOW FOR THIS YEAR THE DROP WAS ATTRIBUTED TO FOREIGN SELLING IN TAIPEI SHARES STAGED A TECHNICAL REBOUND AS GAINS IN INDUSTRIAL STOCKS HALTED THE MARKET'S TWOWEEK BEAR RUN IN WHICH PRICES HAD FALLEN 10 IN WELLINGTON STOCKS GAINED 12 AS THE MARKET CONTINUED RISING FUELED MAINLY BY POSITIVE OVERSEAS SENTIMENT AND BULLISHNESS ABOUT THE NEW ZEALAND ECONOMY IN MEXICO CITY EQUITIES PLUMMETED 28 IN LIGHT DEALINGS DAMPED BY POOR CORPORATE RESULTS AND CONCERNS ABOUT MEXICAN POLITICS IN REACTION TO A PEASANT UPRISING AND ABOUT HIGHER US INTEREST RATES YESTERDAY'S DROP TOOK THE MARKET DOWN 127 FROM ITS HIGH SET FEB 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 9403020121 940302 MARKETING & MEDIA STEEL AND TURNER PICTURES SIGN EXCLUSIVE MOVIE DEAL ATLANTA HOLLYWOOD PRODUCER DAWN STEEL CAPPING MONTHS OF ONANDOFF TALKS WITH TURNER BROADCASTING SYSTEM INC SIGNED AN EXCLUSIVE MOVIEPRODUCTION DEAL WITH TURNER PICTURES MS STEEL 47 YEARS OLD IS FORMING A NEW FILM COMPANY ATLAS ENTERTAINMENT WITH HER HUSBAND PRODUCER CHARLES ROVEN AND HIS PARTNER BOB CAVALLO TURNER PICTURES WILL HAVE EXCLUSIVE FIRSTLOOK RIGHTS AT THE TOTAL OF TWO OR THREE ACTION AND ANIMATED MOVIES THAT ATLAS PLANS TO MAKE EACH YEAR ACCORDING TO SCOTT SASSA PRESIDENT OF TURNER ENTERTAINMENT GROUP WHICH OVERSEES TURNER PICTURES MS STEEL SAYS HER DEAL WITH TURNER COVERS MORE THAN TWO YEARS BUT LESS THAN FIVE SHE WOULDN'T DISLOSE FINANCIAL TERMS OF HER CONTRACT AND SAID HER PRODUCTION BUDGET WILL BE DETERMINED ON A MOVIEBYMOVIE BASIS TURNER BROADCASTING ORIGINALLY PURSUED MS STEEL THE FORMER PRESIDENT OF COLUMBIA PICTURES TO RUN TURNER PICTURES THOSE TALKS BROKE DOWN EARLIER THIS YEAR BECAUSE MS STEEL PREFERRED A PRODUCTION DEAL WITH TURNER PICTURES ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS HER CURRENT ARRANGEMENT WITH TURNER PICTURES GIVES THE PRODUCER AN UNUSUAL DEGREE OF AUTONOMY SAY PEOPLE CLOSE TO MS STEEL 9403020120 940302 BUSINESS BRIEF INTERACTIVE NETWORK INC NTN COMMUNICATIONS FACES SUIT OVER PATENT LITIGATION INTERACTIVE NETWORK INC SAID IT FILED A LAWSUIT AGAINST NTN COMMUNICATIONS INC ALLEGING MALICIOUS PROSECUTION AFTER NTN'S PATENT LITIGATION AGAINST THE COMPANY WAS DISMISSED INTERACTIVE'S LAWSUIT FILED IN STATE SUPERIOR COURT FOR SANTA CLARA COUNTY SEEKS 20 MILLION IN DAMAGES FROM NTN BASED IN CARLSBAD CALIF NTN BRANDED AN INTERACTIVE STATEMENT YESTERDAY AS INACCURATE INTERACTIVE NETWORK BASED IN SUNNYVALE CALIF OFFERS A SUBSCRIPTION SERVICE ALLOWING TELEVISION VIEWERS TO PLAY ALONG WITH GAME SHOWS AND SPORTS EVENTS NTN A MARKETER OF INTERACTIVE GAMES HAD CLAIMED IT INVENTED INTERACTIVE'S TECHNOLOGY A FEDERAL COURT IN SAN FRANCISCO ON JAN 26 DISMISSED NTN'S CLAIMS LAURA KASS NTN GENERAL COUNSEL SAID THE COMPANY HAS APPEALED THE FEDERAL COURT'S DISMISSAL OF ITS ACTION NTN PRESIDENT PATRICK DOWNS CALLED INTERACTIVE'S PRESS RELEASE ON THE MATTER INACCURATE CONFUSING AND BIZARRE 9403020119 940302 TUESDAY'S MARKETS INFLATION FEARS SEND BOND PRICES REELING BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A NEW WAVE OF INFLATION FEARS SENT BOND PRICES REELING STOCK PRICES FOLLOWED BONDS LOWER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 2279 POINTS TO 380923 STANDARD & POOR'S 500STOCK INDEX FELL 270 TO 46444 AND THE NASDAQ COMPOSITE INDEX LOST 386 TO 78864 THE TREASURY'S BENCHMARK 30YEAR BOND PLUNGED 1 1/2 POINTS OR 15 FOR EACH 1000 FACE AMOUNT DRIVING THE YIELD TO 681 ITS HIGHEST LEVEL SINCE JUNE BEFORE SETTLING AT 677 THE CARNAGE BEGAN EARLY IN THE DAY WHEN THE COMMERCE DEPARTMENT REVISED UPWARD FOURTHQUARTER GROSS DOMESTIC PRODUCT TO A ROBUST 75 FROM AN EARLIER ESTIMATE OF 59 BOND PRICES SANK AS TRADERS FEARED SUCH GROWTH WOULD STOKE INFLATION BUT THE BOND MARKET LOSSES WERE TEMPERED AFTER COOLER MINDS RECOGNIZED THAT THE GDP REPORT'S INFLATION COMPONENT WAS REVISED UPWARD ONLY MARGINALLY BUT THE BOND MARKET RECOVERY WAS SHORTLIVED QUICK ON THE HEELS OF THE GDP REPORT CAME DISCOURAGING INFLATION NEWS FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS THE PRICESPAID INDEX IN THE GROUP'S FEBRUARY SURVEY SHOWED A SHARP INCREASE TO 67 FROM 598 IN JANUARY EVEN AS THE OVERALL PURCHASING MANAGERS INDEX SLIPPED SLIGHTLY BECAUSE OF THE SEVERE WINTER THE REPORT SENT BOND PRICES INTO A TAILSPIN THE BOND MARKET WAS VULNERABLE TO BAD NEWS ON INFLATION AND THE PURCHASING MANAGERS' REPORT FUELED THOSE FEARS SAID MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK BOND BUYERS WERE HARD TO FIND EVEN WITH THE SHARP DECLINES IN BOND PRICES IN RECENT WEEKS MANY INVESTORS WERE RELUCTANT TO JUMP IN FOR BARGAINS OUR FEELING IS THAT WHEN THE MARKET IS GOING AGAINST YOU WITH A TREND LIKE THIS YOU BETTER STAY AWAY SAID ERIC K CHEUNG MANAGER OF THE FIXEDINCOME DIVISION OF WILMINGTON TRUST WHICH MANAGES 35 BILLION IN FIXED0INCOME INVESTMENTS STOCK PRICES FELL ALONG WITH BONDS BUT MANAGED TO RECOVER FROM THEIR LOWS BY THE CLOSE THE DOW JONES INDUSTRIALS TUMBLED MORE THAN 45 POINTS BEFORE SOME BUYERS VENTURED BACK INTO THE MARKET BUT TRADERS WORRY THAT THE BUYING THAT OFTEN IS TRIGGERED BY STEEP STOCK PRICE DECLINES ISN'T OCCURRING WITH THE USUAL VIGOR GERALD SIMMONS SENIOR VICE PRESIDENT IN CHARGE OF TRADING AT INTERSTATE/JOHNSON LANE IN ATLANTA SAID THAT LARGE INSTITUTIONAL INVESTORS AREN'T SWEEPING IN TO SNAP UP BARGAINS BECAUSE THEY'RE NOW CONVINCED THE STOCK MARKET HAS ENTERED A BONA FIDE CORRECTION WHOSE END ISN'T YET IN SIGHT THE PSYCHOLOGY HAS CHANGED FROM LET'S BUY STOCKS ON DIPS TO LET'S JUST WALK AWAY SAID MR SIMMONS AMONG THE BIG LOSERS WERE INTERESTRATE SENSITIVE FINANCIAL STOCKS AND UTILITIES AS WELL AS TRANSPORTS AND BIG ECONOMICALLY SENSITIVE SHARES THAT HAVE CLIMBED A LOT IN RECENT MONTHS NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA POINTED OUT THAT EVEN WITH ALL THE RECENT STOCK MARKET TURMOIL THE DOW JONES INDUSTRIAL AVERAGE IS STILL ONLY 43 BELOW ITS RECORD HIGH BUT HE ADDED THAT A WORRY IS THAT MANY SMALLER INVESTORS WHO NEED SECURE INVESTMENTS MAY SHY AWAY FROM STOCKS FOR A WHILE THAT COULD SLOW THE MONEY FLOWS INTO THE STOCK MARKET THESE PEOPLE ARE SAYING LET'S NOT TAKE A RISK HERE MR COLLINS SAID OVERSEAS STOCK AND BOND MARKETS ALSO PLUNGED IN EUROPE INVESTORS REACTED TO HIGHER US INTEREST RATES AND TO THE GERMAN CENTRAL BANK'S DECISION TO REDUCE A KEY MONEY MARKET INTEREST RATE BY AN UNEXPECTEDLY SMALL 003 PERCENTAGE POINT FRENCH SHARES PLUNGED 25 GERMAN STOCKS 12 AND BRITISH EQUITIES 17 IT WAS A MINIBLOODBATH SAID KENNETH JOSEPH AN EXECUTIVE DIRECTOR AT LEHMAN BROTHERS INTERNATIONAL IN LONDON HE BLAMED THE DECLINES LARGELY ON HEAVY SELLING BY HEDGE FUNDS TRADERS ADDED THAT STABILITY WON'T RETURN TO EUROPEAN STOCK AND BOND MARKETS UNTIL HEDGE FUNDS AND BANK TRADING DESKS ARE FINISHED SELLING THE HUGE BOND AND BOND FUTURES POSITIONS THEY BUILT UP WRONGLY BETTING ON LOWER RATES AND WEAKER CURRENCIES IN EUROPE WE ARE VERY CLOSE TO THE LOWEST LEVELS WE ARE GOING TO SEE IN THE SHORTTERM BUT IT MAY TAKE SEVERAL WEEKS BEFORE THE MARKET RESUMES GOING UP SAID GEOFFREY SARTORIUS A BOND TRADER AT BANQUE NATIONALE DE PARIS THE IMPORTANT THING IS THAT LONGTERM INVESTORS DO NOT GET SCARED AND START SELLING THEIR ASSETS AS LONG AS THE PHENOMENON IS LIMITED TO TRADERS WE CANNOT CALL IT A CRISIS WORLDWIDE STOCK PRICES DROPPED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 049 TO 11625 IN MAJOR MARKET ACTION STOCK PRICES TUMBLED VOLUME TOTALED 300 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1449 ISSUES FELL AND 716 ROSE BOND PRICES PLUNGED TENYEAR TREASURY BONDS LOST MORE THAN A POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT TO YIELD 627 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17095 MARKS AND 10460 YEN COMPARED WITH 17041 MARKS AND 10450 YEN MONDAY 9403020118 940302 TECHNOLOGY & MEDICINE RESEARCHERS SAY DRUG MAY SLOW PROGRESSION OF ALS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL FRENCH AND BELGIAN MEDICAL RESEARCHERS SAID AN EXPERIMENTAL DRUG FROM RHONEPOULENC RORER INC MAY BE THE FIRST DRUG TO SLOW THE LETHAL PROGRESSION OF THE NERVE DISORDER THAT KILLED AMERICAN BASEBALL HERO LOU GEHRIG BUT A US SCIENTIST SAID HE WAS SKEPTICAL OF THE FRENCHBELGIAN RESULTS AND FEARED THAT PUBLICATION OF THEIR RESEARCH MIGHT INTERFERE WITH FURTHER HUMAN TRIALS OF THE RHONEPOULENC DRUG THE FRENCH RESEARCHERS REPORTED THAT USE OF THE DRUG RILUZOLE SEEMED TO PROLONG THE SURVIVAL AND SLOW THE PARALYSIS IN PATIENTS WITH AMYOTROPHIC LATERAL SCLEROSIS KNOWN AS LOU GEHRIG'S DISEASE IN THE US IN TESTS AT SEVERAL MEDICAL CENTERS HALF OF THE 78 PATIENTS WHO TOOK RILUZOLE WERE ALIVE AT THE END OF THE ONEYEAR EXPERIMENT COMPARED WITH THE SURVIVAL OF ONLY A THIRD OF THE 78 PATIENTS WHO TOOK AN INERT OR PLACEBO PILL ACCORDING TO THE RESEARCHERS' REPORT IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE TESTS OF MUSCLE FUNCTION ALSO INDICATED THAT THE DETERIORATION OF MUSCLES WAS SLOWER IN THE RILUZOLETREATED PATIENTS THAN IN THOSE TAKING THE PLACEBO THE RESEARCHERS SAID THE DRUG SEEMED TO WORK BEST IN PATIENTS WITH THE SOCALLED BULBARONSET TYPE OF ALS IN WHICH THE PARALYSIS BEGINS IN THE LIPS MOUTH AND THROAT IN CONTRAST TO THE LIMBONSET TYPE OF ALS OF THE 15 PATIENTS WITH THE BULBARONSET ALS WHO RECEIVE RILUZOLE 11 WERE ALIVE AT THE END OF THE YEAR WHILE ONLY SIX OF THE 17 LIMBONSET PATIENTS WERE ALIVE RHONEPOULENC SAID A SECOND TRIAL OF THE DRUG IN ALS IS SCHEDULED TO BE COMPLETED IN APRIL 1995 QUESTIONS ABOUT THE VALIDITY OF THE FRENCHBELGIAN RESULTS WERE RAISED BY LEWIS P ROWLAND OF COLUMBIAPRESBYTERIAN MEDICAL CENTER IN NEW YORK DR ROWLAND SAID IT WASN'T CLEAR WHETHER THE DRUGTREATED AND PLACEBOTREATED GROUPS OF PATIENTS WERE SIMILAR IN THE SEVERITY AND TYPES OF ALS THEY SUFFERED DIFFERENCES OTHER THAN THE TAKING OF THE DRUG MIGHT HAVE ACCOUNTED FOR THE DIFFERENCES IN SURVIVAL HE SUGGESTED WITH THE PUBLICATION OF THE REPORT DR ROWLAND NOTED MANY ALS PATIENTS WILL BE RELUCTANT TO VOLUNTEER FOR ADDITIONAL TRIALS OF THE DRUG IF THEY KNOW THEY MIGHT RECEIVE AN INERT PLACEBO INSTEAD OF THE DRUG DR ROWLAND ADDED THAT IN THE PAST ALS PATIENTS HAVE BEEN MISLED BY ANNOUNCEMENTS OF BENEFIT FROM THERAPIES THAT LATER PROVED TO BE INEFFECTIVE IT WOULD BE SAD IF RILUZOLE EXTENDED THAT LIST 9403020117 940302 ABREAST OF THE MARKET INDUSTRIALS TUMBLE 2279 POINTS AS RATES JUMP ON INFLATION FEARS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SWOONED AS INTEREST RATES ROCKETED AMID FEARS THAT INFLATION IS CREEPING BACK AFTER TUMBLING MORE THAN 45 POINTS DURING THE AFTERNOON THE DOW JONES INDUSTRIAL AVERAGE RECOVERED SOMEWHAT ENDING THE DAY 2279 POINTS LOWER AT 380923 IT WAS THE LOWEST CLOSE ON THE BLUECHIP STOCK INDEX SINCE JAN 6 STANDARD & POOR'S 500STOCK INDEX LOST 270 POINTS TO 46444 AND THE NASDAQ COMPOSITE INDEX GAVE UP 386 POINTS TO 78864 DECLINING ISSUES OUTPACED ADVANCERS 1449 TO 716 VOLUME SWELLED TO 300028000 SHARES FROM 267440000 SHARES MONDAY THE LIQUIDITY TIDE HAS CHANGED SAID WAYNE NORDBERG PORTFOLIO MANAGER AT LORD ABBETT LIQUIDITY IS RUNNING OUT OF THE FINANCIAL MARKETS AND INTO THE REAL ECONOMY AND THE MARKET IS BEING FORCED TO RECOGNIZE THAT NEWS THAT THE NATION'S GROSS DOMESTIC PRODUCT SOARED AT A 75 ANNUAL RATE IN THE FOURTH QUARTER WAS EXPECTED TO BUOY STOCK PRICES YESTERDAY BUT THE PROSPECT OF ANY RALLY WAS QUICKLY SQUASHED BY A REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT THOUGH THE GROUP'S OVERALL READING OF MANUFACTURING ACTIVITY SHOWED SOME SLOWING IN THE ECONOMY ITS INDEX THAT TRACKS PRICES SOARED RISING TO THE HIGHEST LEVEL SINCE OCTOBER 1990 WHEN THE FEDERAL RESERVE RAISED INTEREST RATES LAST MONTH SOME PEOPLE WONDERED WHY IS THE FED RAISING RATES WHEN THERE ARE NO INFLATIONARY PRESSURES IN SIGHT' SAID JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON WELL HERE'S A BIT OF INFLATION FOR ALREADY EDGY BOND INVESTORS IT WAS MORE BAD INFLATION NEWS THAN THEY COULD SWALLOW IN A BRUTAL SELLOFF INVESTORS DUMPED BONDS DRIVING THE YIELD ON THE TREASURY'S 30YEAR BOND TO 677 FROM 665 THE PREVIOUS DAY THE DOW JONES UTILITY AVERAGE CONSIDERED BY SOME A LEADING INDICATOR OF INTEREST RATES ALSO DROPPED FALLING 105 TO 20940 MR APPLEGATE SAID IT IS STILL UNCLEAR WHETHER COMPANIES WILL BE ABLE TO PASS SOME OF THE PRICE INCREASES THEY ARE SEEING ON THE PRODUCTION SIDE TO CONSUMERS HE SAID SUCH CONCERNS MAY HAVE BEEN BEHIND YESTERDAY'S SHARP SELLOFF IN STOCKS IF YOU'VE GOT PRICING POWER ON THE PRODUCTION SIDE OF THE ECONOMY AND NOT ON THE CONSUMPTION SIDE OF THE ECONOMY YOU CALL INTO QUESTION THE MAINTENANCE OF MARGINS PARTICULARLY WITH MANY CONSUMER STAPLES COMPANIES SAID MR APPLEGATE MEANWHILE IN THEIR RUSH TO SELL YESTERDAY INVESTORS IGNORED SOME ENCOURAGING NEWS ON THE DIVIDEND FRONT STANDARD & POOR'S CORP SAID THERE WERE 226 DIVIDEND INCREASES LAST MONTH UP FROM JUST 185 IN JANUARY AND THE HIGHEST ONEMONTH TALLY SINCE 1981 THE NUMBERS HAVE BEEN COMING IN GOOD FOR SOME TIME BUT FEBRUARY WAS SURPRISINGLY HIGH SAID ARNOLD KAUFMAN THE EDITOR OF S&P'S OUTLOOK NEWSLETTER BUT MR KAUFMAN WARNED THAT IMPROVEMENT IN DIVIDENDS ISN'T NECESSARILY A PRECURSOR TO HIGHER STOCK PRICES IN FACT HE SAID SOME CONTRARIANS VIEW A JUMP IN DIVIDEND INCREASES AS A SIGN THAT STOCK PRICES MAY HAVE REACHED A PEAK KEYCORP DOWN 1 TO 37 AND SOCIETY CORP UP 1/8 TO 31 5/8 MEANWHILE TOPPED THE BIG BOARD'S MOSTACTIVE LIST THE TWO BANKING COMPANIES SAID THEY COMPLETED THEIR PREVIOUSLY ANNOUNCED MERGER VOLUME IN SOCIETY BASED IN CLEVELAND TOTALED 56 MILLION SHARES TRADING IN KEYCORP OF ALBANY NY NEARED 52 MILLION SHARES ELSEWHERE DIGITAL EQUIPMENT JUMPED 2 1/8 TO 31 1/4 AN ANALYST AT SALOMON BROTHERS INC RAISED A RATING ON THE MAYNARD MASS COMPUTER MAKER'S SHARES TO BUY FROM HOLD AST RESEARCH THOUGH LOST 2 3/4 TO 28 3/4 ON THE NASDAQ STOCK MARKET A MOVE TRADERS TIED TO CONCERNS THAT THE IRVINE CALIF PERSONAL COMPUTER MANUFACTURER WILL BE FORCED TO CUT PRICES SEPARATELY DEAN WITTER REYNOLDS SAID ESTIMATES OF AST'S THIRDQUARTER EARNINGS MIGHT BE CUT BY ANALYSTS A SPOKESWOMAN FOR AST HAD NO COMMENT IMC FERTILIZER SLUMPED 2 1/2 TO 43 1/2 AFTER OPPENHEIMER & CO LOWERED ITS RATING ON THE NORTHBROOK ILL COMPANY'S STOCK TO MARKET PERFORMER FROM ANALYST'S BUY SNAPPLE BEVERAGE SKIDDED 1 3/4 TO 27 1/8 EVEN THOUGH THE VALLEY STREAM NY COMPANY SAID IT EARNED 17 CENTS A SHARE IN THE FOURTH QUARTER INCLUDING A TAX BENEFIT UP FROM FOUR CENTS A SHARE A YEAR EARLIER ALTHOUGH THE RESULTS MATCHED EXPECTATIONS SOME INVESTORS WERE HOPING FOR AN EVEN BETTER REPORT OTHER INVESTORS WERE SAID TO BE CONCERNED ABOUT A MOVE BY COCACOLA TO INCREASE ITS SHARE OF THE SOCALLED ALTERNATIVE BEVERAGE MARKET IN WHICH SNAPPLE IS A MAJOR PLAYER THE ATLANTA COMPANY INTRODUCED A LINE OF FRUIT DRINKS ITS STOCK EASED 1/4 TO 42 3/8 ON THE BIG BOARD QUALCOMM JUMPED 2 3/4 TO 25 1/4 ON NASDAQ THE SAN DIEGO COMPANY AND A UNIT OF JAPAN'S SONY AGREED TO JOINTLY DESIGN AND MANUFACTURE COMPUTERIZED WIRELESS TELEPHONES SONY'S AMERICAN DEPOSITARY RECEIPTS SLIPPED 7/8 TO 60 5/8 9403020116 940302 CANADA'S GDP INCREASED 38 IN FOURTH PERIOD BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S ECONOMY PICKED UP MOMENTUM IN THE FOURTH QUARTER LED BY A STRONG RISE IN CAPITAL SPENDING AND A BIG INCREASE IN EXPORTS TO THE US THE COUNTRY'S GROSS DOMESTIC PRODUCT INCREASED IN THE PERIOD AT AN ANNUAL RATE OF 38 DOUBLE THE PACE OF THE PREVIOUS THREE MONTHS STATISTICS CANADA A GOVERNMENT AGENCY SAID GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION FOURTHQUARTER EXPORTS ROSE AT AN ANNUAL RATE OF MORE THAN 14 LED BY INCREASED SHIPMENTS OF OFFICE MACHINES AUTO PARTS TELEVISION AND TELECOMMUNICATIONS EQUIPMENT LUMBER AND COAL THE US TAKES MORE THAN 80 OF CANADA'S EXPORTS BUSINESS INVESTMENT IN THE FOURTH QUARTER ROSE AN ANNUAL RATE OF MORE THAN 17 THE RISE WAS SPURRED BY LOW INTEREST RATES STRONG EXPORT DEMAND RISING CORPORATE PROFITS AND TEMPORARY SMALL BUSINESS INVESTMENT TAX CREDITS ECONOMIC ANALYSTS SAID THEY WERE ENCOURAGED THAT CANADIANS ALSO MANAGED TO INCREASE THEIR SPENDING ON GOODS AND SERVICES IN THE FOURTH QUARTER DESPITE A 1993 DECLINE IN THEIR INFLATIONADJUSTED EARNINGS THE SPENDING INCREASE AT AN ANNUAL RATE OF 18 WAS FINANCED BY A DECLINE IN SAVINGS AND A PICKUP IN BORROWING THIS IS A SIGN OF CONFIDENCE IN THE FUTURE SAID PHILIP CROSS SENIOR ECONOMIC ANALYST AT STATISTICS CANADA RUTH GETTER SENIOR VICE PRESIDENT AT TORONTO DOMINION BANK SAID CANADA'S PROSPECTS FOR 1994 LOOK GOOD BECAUSE OF THE STRONG PERFORMANCE OF ITS MAIN TRADING PARTNER THE US SHE SAID ANNUAL CANADIAN GDP GROWTH OF 3 1/2 TO 4 LOOKS QUITE ACHIEVABLE OVER THE NEXT SEVERAL YEARS FOR ALL OF 1993 GDP GREW 24 THE STRONGEST GROWTH SINCE 1989 BANK OF MONTREAL CHIEF ECONOMIST LLOYD ATKINSON SAID THE CANADIAN ECONOMY IN THE COMING MONTHS MAY SHOW MORE STRENGTH THAN EXPECTED BECAUSE OF PENTUP DEMAND FOR AUTOS AND HOUSING BUT HE SAID SUCH DEMAND WON'T BE SUSTAINED FOR LONG IF EMPLOYMENT AND EARNINGS DON'T PICK UP EMPLOYMENT DECLINED 03 IN JANUARY PUSHING UP THE UNEMPLOYMENT RATE TO 114 OF THE CIVILIAN WORK FORCE MR ATKINSON SAID HE DOESN'T EXPECT MUCH EMPLOYMENT GROWTH THIS YEAR OR MUCH CHANGE IN THE UNEMPLOYMENT RATE CANADA'S MILD RECOVERY HAS KEPT A LID ON PRICE PRESSURES THE GDP PRICE INDEX A BROAD MEASURE OF INFLATION ROSE 13 IN 1993 SEPARATELY STATISTICS CANADA REPORTED YESTERDAY THAT CANADA HAD A 1993 DEFICIT OF 2522 BILLION CANADIAN DOLLARS US1868 BILLION ON THE CURRENT ACCOUNT OF ITS INTERNATIONAL BALANCE OF PAYMENTS IN 1992 IT HAD A DEFICIT OF C2768 BILLION THE CURRENT ACCOUNT IS A FINANCIAL ACCOUNTING OF THE COUNTRY'S TRADE IN GOODS AND SERVICES IT ALSO INCLUDES INVESTMENT INCOME FLOWS IN AND OUT OF CANADA 9403020115 940302 TECHNOLOGY & MEDICINE SURVEY FINDS ONE IN SEVEN TB CASES IS RESISTANT TO USUAL DRUG THERAPY BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL ONE IN SEVEN CASES OF TUBERCULOSIS IN THE US IS RESISTANT TO DRUGS THAT PREVIOUSLY CURED THE DISEASE THE FIRST NATIONAL GOVERNMENT SURVEY OF TB CASES FOUND PUBLICHEALTH PROFESSIONALS HAVE BEEN CONCERNED FOR YEARS ABOUT THE RETURN OF TUBERCULOSIS WHICH WAS CONSIDERED UNDER CONTROL IN THE US UNTIL THE MID1980S AND ABOUT THE SPREAD OF STRAINS THAT DEFY TRADITIONAL DRUG TREATMENT THE STUDY CONDUCTED BY THE GOVERNMENT'S CENTERS FOR DISEASE CONTROL AND PREVENTION SHOWED AN EVEN GREATER PROBLEM THAN THOUGHT BECAUSE THE INCIDENCE OF DRUG RESISTANCE WAS HIGHER THAN EXPECTED SAID ALAN B BLOCH A CDCP MEDICAL EPIDEMIOLOGIST AND THE STUDY'S LEAD RESEARCHER RESISTANCE ARISES WHEN PATIENTS FAIL TO COMPLETE THEIR DRUG THERAPY WHICH LASTS SIX MONTHS OR LONGER THE HARDIEST TB BACTERIA ARE ALLOWED TO SURVIVE AS A RESULT AND AS THEY MULTIPLY THEY SPREAD THEIR GENES TO A NEW GENERATION OF BACTERIA AND TO NEW VICTIMS THE DRUGRESISTANT FORMS OF TB THAT DON'T RESPOND TO THE USUAL DRUG THERAPY MIGHT BE TREATABLE BY OTHER SOMETIMES MORE TOXIC DRUGS THE STUDY ALSO FOUND THAT PATIENTS WITH SOME OF THE DEADLIEST STRAINS OF TB THOSE THAT RESIST MULTIPLE DRUGS MAY BE MORE LIKELY TO INFECT OTHER PEOPLE OFFICIALS OF THE CDCP CALLED FOR AGGRESSIVE INTERVENTION TO PREVENT THE FURTHER SPREAD OF DRUGRESISTANT TB INCLUDING FINDING EVERY TB PATIENT AND ENSURING THAT PATIENTS COMPLETE THEIR DRUG THERAPY WE NEED TO PLACE A SOLID FOUNDATION UNDER EVERY STATE AND LOCAL TUBERCULOSIS PROGRAM IN THE NATION TO GUARANTEE THAT THE RESOURCES ARE ALWAYS PRESENT TO ENSURE THAT ALL TUBERCULOSIS PATIENTS CAN COMPLETE AN ADEQUATE COURSE OF THERAPY DR BLOCH SAID THE SURVEY PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION COLLECTED INFORMATION ABOUT TB CASES REPORTED ACROSS THE COUNTRY IN THE FIRST THREE MONTHS OF 1991 OF THE 3313 CULTURES THAT WERE TESTED AGAINST ANTITUBERCULOSIS DRUGS 142 WERE RESISTANT TO ONE OR MORE DRUGS IN MOST OF THOSE CASES THE BACTERIA WERE RESISTANT TO ONE OR MORE OF THE MOST POWERFUL ANTITB DRUGS ISONIAZID RIFAMPIN AND STREPTOMYCIN EXTRAPOLATING FROM THE SURVEY SAMPLE THE RESEARCHERS ESTIMATED A FULLYEAR INCIDENCE OF 2500 DRUGRESISTANT TB CASES IN THE US IN 1991 THE RESISTANT CASES WERE FOUND IN 36 STATES BUT NEW YORK CITY ACCOUNTED FOR 30 OF ALL DRUGRESISTANT PATIENTS AND 61 OF THE MULTIDRUG RESISTANT CASES PATIENTS IN NEW YORK CITY HAVE A 52FOLD INCREASED RISK OF MULTIDRUGRESISTANT TB THAN PATIENTS IN THE REST OF THE COUNTRY ACCORDING TO THE RESEARCHERS DR BLOCH ADDED THAT NEW YORK CITY HEALTH OFFICIALS HAVE MADE GREAT STRIDES SINCE 1991 TO CATCH TB CASES EARLY AND CLOSELY MONITOR PATIENT DRUG TREATMENT BASED ON THE SURVEY'S FINDINGS THE RESEARCHERS CALLED FOR CHANGING THE INITIAL STANDARD TB TREATMENT TO FOUR DRUGS FROM THE CURRENT TWODRUG REGIMEN BUT IF PATIENTS FAIL TO TAKE ALL THEIR MEDICATION TB STRAINS WILL EVENTUALLY EMERGE THAT WILL RENDER THOSE DRUGS INEFFECTIVE AS WELL DR BLOCH WARNED THE POTENTIAL LOSS OF EFFECTIVE DRUG THERAPY IS A CAUSE OF GREAT CONCERN 9403020114 940302 WHAT'S NEWS WORLDWIDE A MAGISTRATE ORDERED ACCUSED SPY AMES AND HIS WIFE HELD IN JAIL AFTER LISTENING TO GOVERNMENT PROSECUTORS A FEDERAL MAGISTRATE IN ALEXANDRIA VA RULED THERE WAS SUFFICIENT EVIDENCE TO SEND THE CASE TO A GRAND JURY HE ORDERED THE COUPLE HELD WITHOUT BAIL SAYING THERE WAS AN UNACCEPTABLE RISK THAT AMES WOULD FLEE THE COUNTRY ACCORDING TO COURT TESTIMONY FBI SEARCHES HAVE SHOWN THAT AMES PROVIDED MOSCOW WITH SOME OF THE CIA'S MOST DELICATE ESPIONAGE DATA INCLUDING MILITARY INFORMATION SOME OF THE MOST INCRIMINATING EVIDENCE IN THE CASE AGAINST AMES COMES FROM HIS WIFE RUSSIA ANNOUNCED THE ARREST OF A SENIOR DEFENSE INDUSTRY OFFICIAL ON CHARGES OF SPYING FOR THE BRITISH GOVERNMENT AND PASSING SECRET WEAPONS INFORMATION TO THE WEST OVER THE PAST YEAR BOSNIAN MUSLIMS AND CROATS AGREED TO FORM A BINATIONAL STATE INCREASING PRESSURE ON BOSNIA'S SERBS TO SEEK PEACE THE USBROKERED ACCORD IS INTENDED TO LAY THE BASIS FOR AN ECONOMICALLY VIABLE IF SMALLER BOSNIAN STATE SEPARATELY SERBS SAID THEY WOULD ALLOW AID FLIGHTS INTO THE MUSLIM TOWN OF TUZLA ISRAEL FREED MORE THAN 500 PALESTINIAN PRISONERS IN AN EFFORT TO BRING THE PLO BACK TO PEACE TALKS AND SAID ANOTHER 500 WILL BE RELEASED BY THIS WEEKEND MANY PALESTINIANS SCOFFED AT THE GESTURE WITH ONE PLO OFFICIAL CALLING IT COSMETIC SURGERY TO CURB VIOLENCE THAT HAS ERUPTED SINCE FRIDAY'S MASSACRE IN A HEBRON MOSQUE THE EPA ISSUED A REGULATION THAT IT SAID WILL REQUIRE CHEMICAL PLANTS TO REDUCE EMISSIONS OF AIRBORNE TOXIC WASTES BY 88 THE RULE IS EXPECTED TO AFFECT ABOUT 370 PLANTS PRIMARILY IN TEXAS LOUISIANA AND NEW JERSEY THE AGENCY SAID THE RULE WILL REQUIRE FIRMS TO SPEND 450 MILLION FOR EQUIPMENT DENVER'S MAYOR WEBB SAID LATE MONDAY THAT THE OPENING OF THE CITY'S NEW AIRPORT WILL BE DELAYED MORE THAN TWO MONTHS TO MAY 15 SO THAT ITS 200 MILLION BAGGAGE SYSTEM CAN BE REPAIRED THE OPENING OF THE 32 BILLION AIRPORT HAD BEEN SCHEDULED FOR NEXT WEDNESDAY FOLLOWING TWO EARLIER POSTPONEMENTS MEDICAL RESEARCHERS FOUND THAT NIACIN A VITAMIN THAT PEOPLE USE TO LOWER CHOLESTEROL LEVELS IS TOO TOXIC TO BE SOLD AS A NONPRESCRIPTION DRUG THE RESEARCHERS SAID NIACIN TAKEN IN DOSAGES TO REDUCE CHOLESTEROL PRODUCES MORE ADVERSE SIDE EFFECTS THAN EXPERIMENTAL CHOLESTEROLLOWERING DRUGS THEY TESTED FOUR PEOPLE WERE WOUNDED IN NEW YORK TWO OF THEM CRITICALLY WHEN A VAN CARRYING HASIDIC JEWS WAS HIT WITH BULLETS FROM A CAR POLICE SAID THE MOTIVE WAS UNCLEAR MAYOR GIULIANI SAID THERE WAS NO PIECE OF INFORMATION LINKING THE SHOOTING TO FRIDAY'S WEST BANK MASSACRE BUT OBVIOUSLY THAT'S SOMETHING YOU CAN'T EXCLUDE PHYSICIANS MORE OFTEN REQUEST THAT A HOSPITAL APPROVE THE USE OF SPECIFIC DRUGS WHEN THE DOCTORS HAVE HAD CONTACT WITH THE DRUGS' MAKERS SUCH AS ACCEPTING DINNERS OR MONEY FROM THE COMPANIES ACCORDING TO CLEVELAND RESEARCHERS THE STUDY FUELS A CONTROVERSY OVER THE INFLUENCE OF MARKETING PRACTICES ON DOCTORS RUSSIA'S YELTSIN WARNED THE LEADERS OF LAST OCTOBER'S MOSCOW UPRISING WHO WERE FREED FROM PRISON SATURDAY BY AN ACT OF PARLIAMENT THAT HE WOULD ORDER THEIR REARREST IMMEDIATELY IF THEY ATTEMPTED TO STIR UP ANY CONFLICT THE PRESIDENT REPORTEDLY DESCRIBED THE RELEASE OF THE SEVEN POLITICAL OPPONENTS AS ILLEGAL INKATHA PARTY LEADER BUTHELEZI TOLD REPORTERS HIS GROUP WOULD CONSIDER PROVISIONAL REGISTRATION FOR SOUTH AFRICA'S FIRST ALLRACE ELECTION IN APRIL BUT WOULD RETAIN THE OPTION OF A FUTURE BOYCOTT BUTHELEZI MADE THE ANNOUNCEMENT AFTER MEETING WITH RIVAL BLACK POLITICIAN MANDELA ONE IN SEVEN CASES OF TB IS RESISTANT TO DRUGS THAT PREVIOUSLY CURED THE DISEASE ACCORDING TO A GOVERNMENT SURVEY OF TB CASES NATIONWIDE HEALTH OFFICIALS CALLED FOR INTERVENTION TO PREVENT THE FURTHER SPREAD OF DRUGRESISTANT TB TUBERCULOSIS HAD BEEN CONSIDERED UNDER CONTROL UNTIL THE MID1980S NUCLEAR EXPERTS ARRIVED IN NORTH KOREA TO BEGIN A LONGDELAYED INSPECTION OF NUCLEAR SITES THE SIX INSPECTORS WHO PLAN TO BE IN THE COUNTRY FOR TWO WEEKS ARE DUE TO FLY TO YONGBYON TODAY TO BEGIN WORK THERE 9403020113 940302 QUESTAR UNIT SETS PURCHASES SALT LAKE CITY QUESTAR CORP SAID ITS SUBSIDIARY UNIVERSAL RESOURCES CORP AGREED TO ACQUIRE OIL AND NATURAL GAS PROPERTIES FROM UNION PACIFIC RESOURCES CORP FOR 945 MILLION THE ACQUISITION INCLUDES PROPERTIES IN OKLAHOMA TEXAS NEW MEXICO AND COLORADO RD CASH QUESTAR'S CHAIRMAN SAID THE TRANSACTION IS THE LARGEST AND MOST SIGNIFICANT RESERVE ACQUISITION IN THE COMPANY'S HISTORY AND WILL ACCELERATE OUR DEVELOPMENT AS ONE OF THE NATION'S LEADING INDEPENDENT OIL AND GAS PRODUCERS 9403020111 940302 BUSINESS BRIEF FONAR STARTS OFFERING MAGNETICRESONANCE UNITS IN NEW DESIGN MELVILLE NY FONAR CORP INTRODUCED TWO NEW MAGNETICRESONANCE OR MR IMAGING MACHINES THAT IT SAID CAN HALVE WHAT A PATIENT CURRENTLY PAYS FOR A DIAGNOSTIC SCAN BY SUCH A MACHINE THE COMPANY SAID THE MACHINES WILL ALSO MAKE IT POSSIBLE TO DO CERTAIN DIAGNOSTIC IMAGING THAT HAD BEEN ECONOMICALLY PROHIBITIVE SUCH AS A MAMMOGRAM MAMMOGRAPHY IS CURRENTLY DONE USING AN XRAY MACHINE WHICH COSTS PATIENTS ABOUT 80 TO 100 SUBSTANTIALLY LOWER THAN THE 800 OR SO AN MR SCAN WOULD COST SAID RAYMOND DAMADIAN PRESIDENT THE NEW MR MACHINES CAPABLE OF PRODUCING A BETTER PICTURE THAN AN XRAY CAN DELIVER MAMMOGRAMS AT 80 HE SAID THE MACHINES ARE PRICED AT 650000 AND 11 MILLION THEY WOULD COMPETE AGAINST MR MACHINES MADE BY GENERAL ELECTRIC CO FAIRFIELD CONN SIEMENS AG OF GERMANY AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS AMONG OTHERS PHIL DREW A MEDICALEQUIPMENT CONSULTANT IN CONCORD MASS SAID FONAR'S TIMING IS PRETTY GOOD HE SAID THE CLINTON ADMINISTRATION'S PRESSURE TO REDUCE HEALTHCARE COSTS ALONG WITH OTHER FACTORS HAS RESULTED IN A SHARP DROP IN SALES OF MR MACHINES ESPECIALLY THE MOST POWERFUL ONES WHICH ARE THE MOST EXPENSIVE FONAR IS IN THE RIGHT PART OF THE IMAGING MARKET WITH LOWERCOST MACHINES HE SAID THE FONAR MACHINE'S LOWER COST DOESN'T DERIVE FROM NEW TECHNOLOGY BUT FROM ITS CAROUSEL CONFIGURATION WHICH REDUCES THE TIME BETWEEN PATIENTS DR DREW THE CONSULTANT SAID AT LEAST ONE MAJOR MEDICALEQUIPMENT MANUFACTURER SOME 10 YEARS AGO TRIED BUT ABANDONED THE CAROUSEL APPROACH IN A COMPUTED TOMOGRAPHY OR CT SCANNER HE SAID THAT EVEN IF IT WORKS THIS TIME WHETHER IT RESULTS IN LOWER COSTS TO PATIENTS WILL DEPEND ON THERE BEING ENOUGH PATIENTS TO CREATE THE NECESSARY VOLUME 9403020110 940302 BUSINESS BRIEF GITANO TO BE SOLD TO FRUIT OF THE LOOM FIRM SEEKS PROTECTION FROM CREDITORS NEW YORK GITANO GROUP INC SAID IT SIGNED A CONTRACT TO SELL ITS ASSETS TO FRUIT OF THE LOOM INC FOR 100 MILLION IN CASH THE AMOUNT IS HIGHER THAN SOME ANALYSTS HAD EXPECTED BUT IS LOWER THAN THE 130 MILLION GITANO OWES ITS SECURED LENDERS IN ORDER TO FACILITATE THE SALE OF THE COMPANY GITANO AS EXPECTED FILED A VOLUNTARY PETITION SEEKING PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE GITANO ALSO REPORTED A FOURTHQUARTER PROFIT COMPARED WITH A NET LOSS A YEAR EARLIER FRUIT OF THE LOOM'S PROPOSED ACQUISITION OF GITANO IS SUBJECT TO APPROVAL OF THE BANKRUPTCY COURT IN NEW YORK A GITANO SPOKESMAN SAID THE COMPANY HAS PETITIONED THE COURT TO HOLD A HEARING ON THE SALE THIS MONTH GITANO SAID CHICAGOBASED FRUIT OF THE LOOM SUBMITTED THE HIGHEST OFFER IN A BIDDING PROCESS THAT BEGAN IN JANUARY THE APPAREL MAKER WAS PUT UP FOR SALE AFTER ITS LARGEST CUSTOMER WALMART STORES INC SAID IT WOULD STOP BUYING FROM GITANO WHICH PLEADED GUILTY TO CUSTOMS VIOLATIONS IN DECEMBER WALMART HAS INDICATED THAT IT WOULD BE WILLING TO DO BUSINESS WITH GITANO AFTER IT WAS SOLD FRUIT OF THE LOOM'S BID SURPRISED SOME IN THE INDUSTRY WHO HAD SPECULATED THAT GITANO WOULDN'T FETCH MORE THAN ABOUT 60 MILLION BUT FRUIT OF THE LOOM WHICH MAKES UNDERWEAR AND OTHER APPAREL WAS SEEKING A HIGHPROFILE BRAND TO ENHANCE ITS CURRENT LINE OF WOMEN'S BUDGET APPAREL GITANO IS AN EXCELLENT BRAND ASSOCIATED WITH FASHION AT A REASONABLE PRICE IN THE MASS CHANNELS THE WALMARTS AND THE KMARTS WHERE WE PRINCIPALLY SELL OUR PRODUCTS SAID A FRUIT OF THE LOOM SPOKESMAN FRUIT OF THE LOOM PLANS TO MANUFACTURE GITANO APPAREL THROUGH ITS FACTORIES AND OUTSIDE CONTRACTORS HE SAID WALMART IS ALREADY FRUIT OF THE LOOM'S NO 1 CUSTOMER THE SPOKESMAN SAID ADDING THAT FRUIT OF THE LOOM EXECUTIVES HAVE ALREADY SPOKEN WITH WALMART ABOUT THE PLANNED GITANO ACQUISITION WE HAVE GOOD RELATIONS WITH WALMART HE SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY FRUIT OF THE LOOM SHARES ROSE 50 CENTS TO 30625 GITANO SAID FOURTHQUARTER NET INCOME ROSE TO 38 MILLION OR 24 CENTS A SHARE A YEAR EARLIER IT HAD A NET LOSS OF 140 MILLION OR 875 A SHARE WHICH INCLUDED A 903 MILLION RESTRUCTURING CHARGE REFLECTING MANAGEMENT'S DOWNSIZING OF GITANO LAST YEAR GITANO'S SALES FOR THE QUARTER FELL 68 TO 468 MILLION FROM 1462 MILLION A GITANO SPOKESMAN SAID THE COMPANY'S BANKRUPTCY FILING LISTS AS GITANO'S LARGEST SECURED CREDITORS METROPOLITAN LIFE INSURANCE TO WHICH GITANO OWES ABOUT 231 MILLION CHEMICAL BANK WHICH IS OWED 228 MILLION CHASE MANHATTAN BANK 148 MILLION AND CITIBANK ABOUT 125 MILLION 9403020109 940302 PUBLISHING THOUSANDS OF COOKBOOKS IN SEARCH OF SOME COOKS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE ARE COOKING LESS BUT OBSESSING ABOUT IT MORE WITH NEARLY 1000 NEW COOKBOOKS PUBLISHED EACH YEAR IT'S LITTLE WONDER THAT COOKBOOKS ARE BECOMING MORE ARCANE WITH COLLECTIONS OF RECIPES INSPIRED BY EVERYTHING FROM REGIS AND KATHY LEE TO BANANAS FROM THE BANANA LOVER'S COOKBOOK BANANA GAZPACHO AND BANANA HAM LOAF AT THE SAME TIME COOKBOOKS ARE GETTING SO GLOSSY AND EXPENSIVE THAT FEW WOULD RISK ACTUALLY USING THEM IN THE KITCHEN EVEN AS THE NUMBER OF COOKBOOKS RISES THE US IS BECOMING A NATION OF COOKING ILLITERATES EACH YEAR PEOPLE SPEND MORE OF THEIR FOOD DOLLAR IN RESTAURANTS AND LESS IN GROCERY STORES ACCORDING TO TECHNOMIC INC A CHICAGO FOOD CONSULTING FIRM PEOPLE SPENT 294 OF THEIR FOOD DOLLAR ON RESTAURANT MEALS IN 1993 UP FROM 217 IN 1978 MEANWHILE THE PORTION OF THE FOOD DOLLAR SPENT IN FOOD STORES FELL TO 506 FROM 593 EATING EXPERTS AREN'T SURPRISED THAT PEOPLE ARE READING MORE ABOUT COOKING THAN ACTUALLY COOKING IF YOU TRACE THE DECLINE OF THE FAMILY DINNER YOU WILL FIND A DIRECT ASSOCIATION BETWEEN THAT DECLINE AND THE AMOUNT OF HIGHTECH EQUIPMENT IN THE KITCHEN FOR FOOD PREPARATION SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES A MARKETRESEARCH FIRM IN CHICAGO TODAY'S NONCOOKS OUTFIT THEIR KITCHENS WITH FOOD PROCESSORS ESPRESSO MAKERS RICE STEAMERS PASTA MAKERS WOKS AND BREAD MAKERS DIANE SMITH A PORTFOLIO MANAGER IN NEW YORK HAS ACQUIRED 16 COOKBOOKS IN THE PAST FOUR YEARS SHE SUBSCRIBES TO GOURMET AND FOOD & WINE MAGAZINES BUT THE LAST TIME SHE PREPARED A SITDOWN DINNER WAS FOUR YEARS AGO THE SPRING OF 1990 SHE RECALLS IT DIDN'T COME OUT IN RURAL PENNSYLVANIA TESS WATHEN A CLERICAL WORKER ALSO IS AN AVID CONSUMER OF COOKBOOKS BUT AN INFREQUENT CHEF I'M LIKE A KID IN A CANDY STORE WHEN PRESENTED WITH A RACK OF COOKBOOKS SHE SAYS DESPITE HER IMPRESSIVE AND GROWING COOKBOOK COLLECTION MRS WATHEN IS A LOCAL LEGEND FOR SETTING A CHICKEN ON FIRE IN HER MICROWAVE OVEN I DID EVERYTHING THE RECIPE SAID SHE SAYS DEFENSIVELY IN THE PAST WHEN MOM COOKED DINNER FOR THE FAMILY EVERY NIGHT MANY KITCHEN LIBRARIES CONTAINED LITTLE MORE THAN THE JOY OF COOKING OR THE FANNIE FARMER COOKBOOK GIRLS LEARNED TO COOK FROM THEIR MOTHERS OR GRANDMOTHERS AND TOOK HOMEECONOMICS CLASSES IN SCHOOL NOW SAYS MR ROSENBAUM WHEN PEOPLE FINALLY DO COOK IT'S SUCH AN OCCASION THEY REALLY WANT TO DO IT RIGHT THE ACCUMULATION OF COOKBOOKS MAY ALSO REPRESENT A YEARNING FOR A SORT OF A LIFE WHERE STAYATHOME MOM PREPARED A RICH STEW FOR HER GRATEFUL AND LOVING FAMILY EVEN SOME EDITORS ACKNOWLEDGE THERE ARE TOO MANY COOKBOOKS SOMEDAY I'M GOING TO TAKE A VOW THAT I WILL NOT PUBLISH ANY MORE COOKBOOKS THERE ARE ENOUGH SAYS FRAN MCCULLOUGH A SENIOR CONSULTING EDITOR FOR BANTAM BOOKS THAT SHE SAYS WOULD BE HER CONTRIBUTION TO SOCIETY BUT NOT JUST YET MS MCCULLOUGH RECENTLY EDITED A 508PAGE GOURMET COOKBOOK FOR DIABETICS ALTHOUGH SHE PASSED ON ONE ABOUT COOKING FOR MENOPAUSE HERE ARE A FEW OF THE HOT CATEGORIES IN COOKBOOKS THE CIVIL WAR COOKBOOK FROM COURAGE BOOKS INTERTWINES HISTORY AND CUISINE FOR A NEW INSIGHT INTO THE LIVES OF SOLDIERS ON THE BATTLEFIELD THE AUTHOR SEES THE WAR FROM A FOODIE PERSPECTIVE CALLING A KNIFE AND FORK A SOLDIER'S MOST TREASURED POSSESSIONS THE RECIPES WON'T IMPRESS YOUR BOSS FLOUR IS A KEY INGREDIENT IN MANY OF THE DISHES WHICH INCLUDE BEATEN BISCUITS PORK PIE SWEET POTATO PUDDING AND RED FLANNEL HASH THE BOOK ALSO CONTAINS SOME OF THE MOST UNAPPEALING CONTEMPORARY FOOD PHOTOGRAPHY IN MODERN COOKBOOK PUBLISHING INCLUDING UNCENSORED CLOSEUPS OF SALT PORK AND HARDTACK THE BREAD KNOWN TO SOLDIERS AS TEETH DULLERS OR WORM CASTLES OTHER RECENT HISTORICAL COOKBOOKS INCLUDE COOKING WITH FIRE BY THE FAIRFIELD HISTORICAL SOCIETY A COLLECTION OF 17THCENTURY RECIPES TO BE COOKED OVER AN OPEN FIRE FINALLY THERE'S EJ BRILL'S 85 GARUM AND SALSMENTA WHICH EXAMINES THE HISTORY OF TWO FERMENTED FISH CONDIMENTS THAT WERE THE MOST POPULAR FLAVORINGS USED IN ANCIENT ROME COOKING WITH REGIS & KATHIE LEE QUICK & EASY RECIPES FROM AMERICA'S FAVORITE TV PERSONALITIES FROM HYPERION INCLUDES SUCH CLASSIC RECIPES AS PHYLLIS DILLER'S OYSTER STEW AND KATHIE LEE'S SPECIAL TURKEY MARSALA TIP YOU CAN USE FRESH GARLIC INSTEAD OF THE GARLIC SALT IF YOU LIKE THE BOOK CONTAINS THE RECIPE FOR REGIS'S FAVORITE FOOD A RITZ CRACKER SPREAD WITH A LITTLE PEANUT BUTTER AND THEN JUST A LITTLE BIT OF STRAWBERRY JAM FOR HUNGRY MOGULS THERE'S HOLLYWOOD DU JOUR LOST RECIPES OF LEGENDARY HOLLYWOOD HAUNTS FOR WHICH ANGEL CITY PRESS HAS COLLECTED FAVORITE RECIPES FROM CLOSED HANGOUTS SUCH AS THE BROWN DERBY AND DON THE BEACHCOMBERS ABBEVILLE PRESS HAS ALSO PUBLISHED A LINE OF BOOKS BASED VERY LOOSELY ON MOVIES THE CASABLANCA COOKBOOK WINING AND DINING AT RICK'S CONTAINS RECIPES FOR HERE'S LOOKING AT YOU KID CHAMPAGNE COCKTAIL AND LAST PLANE OUT LENTIL AND LAMB SALAD THE SERIES ALSO FEATURES A GONE WITH THE WIND COOKBOOK MAMMY'S SHRIMPCAKES AND THE WIZARD OF OZ COOKBOOK AUNTIE EM'S CRULLERS FOR MORE REFINED TASTES THERE'S FRIDA'S FIESTAS RECIPES AND REMINISCENCES OF LIFE WITH FRIDA KAHLO PUBLISHED BY CLARKSON N POTTER INC AND THE LATEST IN A SERIES OF COFFEETABLE BOOKS WITH RECIPES INSPIRED BY OR ENJOYED BY RENOWNED ARTISTS IT BEGAN WITH MONET'S TABLE IN 1990 LOOK FOR RENOIR'S TABLE THIS FALL THE BAD FOR YOU COOKBOOK FROM VILLARD BOOKS IS A FULLFLAVORED REBELLION AGAINST HEALTHY RECIPES IT FOLLOWS THE CARDINAL RULE IF IT CAN BE POACHED IT CAN BE FRIED FATLADEN RECIPES INCLUDE POTATOES FRIED IN GOOSE FAT CONSOMME WITH SUET BALLS POTATOCRUSTED FRIED CHICKEN AND MOZZARELLA PIE AND BE SURE TO TOP OFF THE MEAL WITH DOUGHNUT PUDDING OR PORK CAKE WHICH CONTAINS 1/2 LB OF FATTY SALT PORK FINELY GROUND OR LARD CAKE MORE BACK OF THE BOX GOURMET FROM SIMON & SCHUSTER INCLUDES MORE THAN 120 RECIPES FROM THE BACKS OF FOOD PACKAGES WHERE ELSE WOULD YOU FIND A COOKIE RECIPE THAT CALLS FOR A TEASPOON OF TABASCO SAUCE AS YOU DO WITH HOT 'N NUTTY COOKIES THE BOOK INCLUDES AN ENTIRE CHAPTER ON COOKING WITH CEREALS WITH A RECIPE FOR APPLEGLAZED HAM LOAF CALLING FOR THREE CUPS OF KELLOGG'S CORN FLAKES IN THE GLAZE MANIFOLD DESTINY THE ONLY GUIDE TO COOKING ON YOUR CAR ENGINE FROM VILLARD BOOKS OBSERVES THAT AS ENGINE COOKING SPREADS IN POPULARITY INTERSTATE REST AREAS WILL TAKE ON A NEW HOMEY CHARACTER THE BOOK ANSWERS SUCH QUESTIONS AS HOW MANY MILES DOES IT TAKE TO ROAST A CHICKEN WERE JAGUARS REALLY DESIGNED WITH VEAL SCALOPPINE IN MIND AND GIVES COOKING TIME IN MILES NOT MINUTES IE CUTLASS CAR SUPREME DISTANCE 4070 MILES THE DWIGHT DAVID EISENHOWER PEPPER STEAK SHOULD BE COOKED DRIVING ACROSS KANSAS USE A TIRE IRON TO CRUSH FOUR PEPPERCORNS RECIPES FOR DISASTER CHRONICLE BOOKS' COLLECTION OF RECIPES BY CARTOONISTS INCLUDES ROZ CHAST'S RECIPE FOR COMPLETE JERK CHICKEN INVITE TEN PEOPLE OVER FOR DINNER FORGET TO DEFROST CHICKEN FOR THE MORE ADVANCED THERE'S MS CHAST'S WORLD'S BIGGEST JERK CHICKEN BUY A CHICKEN AT THE BUTCHER ON YOUR WAY HOME LEAVE IT AT THE DRY CLEANER 9403020108 940302 TEXAS JOURNAL PRESS 1' IF YOU FEEL IT'S A RIPOFF PRESS 2' IF YOU BY KYLE POPE DALLAS THE LUCKY HOUSTONIAN WHO WON LAST WEEK'S 41 MILLION LOTTO TEXAS DRAWING DOESN'T HAVE ANYTHING ON THE PEOPLE AT RS COMMUNICATIONS THEY'VE STARTED THEIR OWN LOTTERY THE DALLAS CONCERN WHICH BILLS ITSELF AS A TELECOMMUNICATIONS COMPANY HAS SET UP WHAT IT HOPES WILL BE A NATIONWIDE TELEPHONE SURVEY TO GAUGE INTEREST IN A NATIONAL LOTTERY TO REDUCE THE FEDERAL DEFICIT THE SURVEY ADVERTISED IN COMMUNITY NEWSPAPERS AND FREECLASSIFIEDAD PUBLICATIONS HAS BEEN RUNNING FOR THE PAST WEEK AND ASKS CALLERS TO DIAL ONE NUMBER IF THEY SUPPORT A NATIONAL LOTTERY ANOTHER IF THEY OPPOSE IT AND A THIRD IF THEY'RE UNDECIDED THE CATCH THE CALLS ARE ALL ON A 900 LINE AND WILL COST YOU 395 A POP SYLVIA WILLIAMS THE S IN RS COMMUNICATIONS NOTES THAT THE COMPANY WILL DUTIFULLY FORWARD 7 OF ITS TAKE OR ABOUT 28 CENTS PER CALL AS A CONTRIBUTION TO THE FEDERAL GOVERNMENT TO HELP REDUCE THE DEFICIT PEOPLE ARE TIRED OF HAVING THEIR TAXES RAISED SHE SAYS ANOTHER 75 CENTS WILL GO TO THE LONGDISTANCE COMPANY AND 40 CENTS WILL BE PAID TO THE PEOPLE WHO OWN THE 900 LINES THE BALANCE 252 PER CALL GOES INTO THE POCKETS OF MS WILLIAMS AND HER PARTNER ROBBIN BROWN MS WILLIAMS AND MS BROWN WHO ALSO WORK PARTTIME JOBS MARKETING LONGDISTANCE SERVICES SAY THEY CAME UP WITH THE IDEA IN A BRAINSTORMING SESSION AFTER ACQUIRING THE 900 LINES MS WILLIAMS FOR ONE ISN'T SHY ABOUT HER INTENTIONS FOR THE PROJECT WE'RE DEFINITELY LOOKING TO MAKE SOME MONEY ON IT SHE SAYS THAT'S WHY WE'RE IN BUSINESS MS BROWN FOR HER PART SAYS THE PAIR ALREADY IS CONSIDERING EXTENDING THE LOTTERY SURVEY INDEFINITELY IN HOPES OF SNAGGING MORE CALLERS THEY WON'T SAY HOW MANY THEY HAVE SNARED ALREADY AND SHE SAYS THE ENTREPRENEURS ALREADY HAVE THEIR EYE ON THEIR NEXT BIG TELEPHONE SURVEY WE'RE TAKING A LOOK AT HEALTH CARE SHE SAYS 9403020107 940302 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THE BOOK LANDS ON YOUR DESK WITH A THUD AND THAT'S THE POINT IT'S CALLED A DIRECTORY OF POLITICAL AND RELIGIOUS PRISONERS DETAINED IN CHINA AND TIBET AND IS PUBLISHED BY ASIA WATCH A HUMANRIGHTS WATCHDOG GROUP THE BOOK CONTAINS THE STORIES OF SOME 1700 PEOPLE KNOWN OR BELIEVED TO HAVE BEEN IMPRISONED BY THE CHINESE GOVERNMENT BECAUSE OF THEIR VIEWS THE BOOK IS AT ONCE AN ILLUSTRATION OF WHY THE US HAS BEEN RIGHT TO BORE IN ON HUMAN RIGHTS IN CHINA AND PROOF THAT THE APPROACH AMERICA HAS BEEN TAKING ISN'T WORKING EVEN AS SECRETARY OF STATE WARREN CHRISTOPHER HEADS TO CHINA NEXT WEEK TO PRESS THE CURRENT POLICY SOME CLINTONITES QUIETLY HOPE TO TRANSFORM THAT POLICY THEY'RE RIGHT IT'S TIME TO GIVE ANOTHER APPROACH A TRY US POLICY HAS BEEN BOTH BLUNT AND UNSATISFYING CONGRESS INSISTS THAT CHINA RECEIVE MOST FAVORED NATION TRADING STATUS A MISNOMER MEANING IT GETS THE SAME TRADE STATUS AS VIRTUALLY EVERY OTHER NATION ONLY IF IT IMPROVES ITS HUMANRIGHTS PERFORMANCE IN PRACTICE THIS MEANS AN ANGRY DEBATE EVERY SPRING AS THE DEADLINE FOR RENEWING MFN STATUS APPROACHES GRUDGING CHINESE IMPROVEMENTS IN SOME AREAS A RENEWAL OF TRADE STATUS FOR ANOTHER YEAR AND BITTERNESS ALL AROUND CHANGE IS NEEDED NOT BECAUSE THE CHINESE HAVE MADE SIGNIFICANT HUMANRIGHTS ADVANCES BUT FOR THE OPPOSITE REASON THE SITUATION IS IMPROVING ONLY MARGINALLY DESPITE US PRESSURE IF THE PROOF OF A POLICY IS IN THE PUDDING THE CURRENT POLICY DOESN'T TASTE VERY GOOD THE PROBLEM MAY SIMPLY BE THAT NEITHER THE BUSH NOR THE CLINTON ADMINISTRATIONS HAS BEEN WILLING TO PULL THE TRIGGER ON THE BIG US WEAPON THE REVOCATION OF CHINA'S TRADE PRIVILEGES BUT AS A PRACTICAL POLITICAL MATTER THE CHANCES OF THE US DOING THAT HAVE GROWN SLIMMER AS MORE US JOBS DEPEND ON TRADE WITH CHINA AND AS A POLICY MATTER THOSE WILLING TO EXPLODE TRADE RELATIONS WITH CHINA NOW HAVE TO WORRY ABOUT POTENTIALLY SERIOUS FALLOUT WHAT IF AN EMBITTERED CHINA STOPS COOPERATING IN THE EFFORT TO HEAD OFF NORTH KOREAN DEVELOPMENT OF A NUCLEAR WEAPON AN ISSUE WITH PROFOUND HUMANITARIAN IMPLICATIONS ALL ITS OWN SO A QUIET DEBATE IS BUILDING INSIDE THE CLINTON ADMINISTRATION OFFICIALS SAY SOME INCLUDING TREASURY SECRETARY LLOYD BENTSEN HAVE BEGUN TO PUSH FOR A STRATEGY OF GETTING PAST THIS YEAR'S MFN DEADLINE OF JUNE 1 AND THEN BREAKING OUT OF THE CURRENT STRAIGHT JACKET OF COURSE THERE'S NO GUARANTEE THE ADMINISTRATION CAN EVEN GET PAST THIS SPRING'S DEBATE AS SECRETARY CHRISTOPHER CAUTIONED IN CONGRESSIONAL TESTIMONY YESTERDAY PRESIDENT CLINTON HAS TO BE ABLE TO CERTIFY THAT CHINA HAS FULFILLED EARLIER PROMISES TO OPEN UP ITS PRISON LABOR SYSTEM AND HAS MADE SIGNIFICANT PROGRESS ON HUMAN RIGHTS BUT LET'S ASSUME CHINA DOES ENOUGH TO MEET THOSE CONDITIONS HERE'S A MODEST PROPOSAL ON HOW THE DIALOGUE ABOUT HUMAN RIGHTS MIGHT THEN BE REVAMPED ADOPT A NEW APPROACH PARALLELING THE MODEL DEVELOPED IN THE REAGAN ADMINISTRATION AND HONED IN THE BUSH ADMINISTRATION FOR HANDLING HUMANRIGHTS COMPLAINTS WITH THE SOVIET UNION USSOVIET RELATIONS WERE DIVIDED INTO A SERIES OF FIVE BASKETS OF ISSUES ONE OF WHICH WAS EXCLUSIVELY A HUMANRIGHTS BASKET THE OTHERS WERE ARMS CONTROL BILATERAL ISSUES REGIONAL ISSUES AND TRANSNATIONAL ISSUES EACH OF THOSE BASKETS IT WAS UNDERSTOOD WOULD BE CONSIDERED EVERY TIME THE TWO NATIONS SAT DOWN TOGETHER FOR ANY SUBSTANTIAL DISCUSSION SOVIET PRESIDENT MIKHAIL GORBACHEV UNDERSTOOD HE COULDN'T ESCAPE A CONFRONTATION ON HUMAN RIGHTS AT EVERY MAJOR MEETING HUMAN RIGHTS WAS LINKED TO EVERYTHING ELSE ON THE AGENDA BUT NOT TO ANY ONE THING IN PARTICULAR POLICY MAKERS WORRIED ABOUT HUMAN RIGHTS DIDN'T HAVE TO CHOOSE BETWEEN LAUNCHING A FRONTAL ATTACK FULL RUPTURE OF TRADE RELATIONS OR DOING NOTHING INSTEAD THEY COULD STRIKE SELECTIVELY THIS OF COURSE IS EASIER TO SAY THAN TO DO CHINESE LEADERS WHO DON'T EXACTLY REGARD THE SOVIET UNION AS A GOOD ROLE MODEL WOULD HAVE TO ACKNOWLEDGE THAT HUMAN RIGHTS IS AN INTEGRAL PART OF THEIR RELATIONSHIP WITH THE US IN THE US HUMANRIGHTS GROUPS WOULD HAVE TO BE CONVINCED THAT LINKING HUMAN RIGHTS TO EVERYTHING WOULDN'T BE THE SAME AS LINKING IT TO NOTHING STILL ALTERNATIVES ARE NEEDED TO REPLACE TODAY'S INCREASINGLY STERILE DEBATE 9403020106 940302 TEXAS JOURNAL HEARD IN TEXAS RENAISSANCE FUND HOPES TO SERVE THOSE WILLING TO ONLY SIT AND WAIT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS RENAISSANCE CAPITAL ISN'T INVESTING IN ART AND LITERATURE FROM THE 14TH THROUGH 16TH CENTURIES AS ITS NAME MIGHT SUGGEST INSTEAD THE SMALL FINANCIAL FIRM IS RECLAIMING THE SEEMINGLY LOST ART OF INVESTING FOR THE LONG HAUL THE NEW CLOSEDEND FUND THE COMPANY PLANS TO LAUNCH WITHIN 90 DAYS WILL USE A RELATIVELY OBSCURE SECTION OF THE CLINTON TAX PLAN THAT PROMISES A 50 CAPITAL GAINS TAX BREAK FOR BUYANDHOLD INVESTORS SECTION 1202 OF THE PLAN WHICH IS AIMED AT SPURRING ECONOMIC EXPANSION THROUGH ENTREPRENEURIAL EFFORT PROMISES TO CUT TAXES FOR THOSE WHO INVEST DIRECTLY IN SMALL MANUFACTURERS AND ALLOW THOSE DOLLARS TO STEEP FOR FIVE YEARS OR LONGER IN EFFECT THIS FUND TO BE CALLED RENAISSANCE CAPITAL GROWTH AND INCOME FUND III AIMS TO BE THE WARREN BUFFETT OF THE FUND WORLD IT PLANS A PORTFOLIO WITH SCANT TURNOVER AND AN EYE PEERING LONG INTO THE FUTURE UNLIKE THE TYPICAL FUND TO BENEFIT FROM THE TAX CUT INVESTORS MUST SUBSCRIBE TO THE FUND DURING ITS INITIAL OFFERING AND HOLD ON FOR THE MINIMUM FIVE YEARS WHAT ALSO SETS THIS FUND APART IS THE FACT THAT IT WILL INVEST SOLELY IN PRIVATELY PLACED CONVERTIBLE PREFERRED STOCK THIS IS A KEY TO THE TAX LENIENCY BECAUSE SECTION 1202 ALSO MANDATES THAT AN EQUITY INVESTMENT BE MADE DIRECTLY IN A COMPANY THIS MEANS EITHER THE PURCHASE OF RISKY VOLATILE AND OFTEN HARDTOCOMEBY INITIAL PUBLIC OFFERINGS OR INVESTMENT IN SECONDARY OR PRIVATELY PLACED OFFERINGS RENAISSANCE HAS FOCUSED IN PARTICULAR ON COMPANIES THAT ARE ALREADY PUBLICLY TRADED AND THAT TYPICALLY HAVE A TRACK RECORD OF PROFITABILITY THE PRIVATE PLACEMENT GIVES RENAISSANCE A VOICE ON THE COMPANY'S BOARD WHILE THE CONVERSION FEATURE USUALLY PRICED IN LINE WITH A STOCK'S CURRENT MARKET VALUE MEANS EXCEPTIONAL GAINS SHOULD THE COMPANY AND ITS STOCK TAKE OFF BEING ALREADY PROFITABLE CUTS ABOUT 80 OF THE RISK SAYS RUSSELL CLEVELAND RENAISSANCE PRESIDENT NOT ONLY DOES THE PRIVATE PLACEMENT FULFILL THE REQUIREMENT FOR DIRECT INVESTMENT IN A COMPANY THE STOCK'S QUARTERLY DIVIDEND STREAM PAYS INVESTORS TO WAIT FOR THE GROWTH SAYS JOSEPH A MARSHALL A SENIOR VICE PRESIDENT AT RAUSCHER PIERCE REFSNES IN DALLAS THE FUND WILL INVEST IN SMALL UNDERVALUED BUT GROWING MANUFACTURING CONCERNS IN NEED OF CAPITAL TO EXPAND ANOTHER CAVEAT OF SECTION 1202 REQUIRES THAT THE COMPANIES HAVE LESS THAN 50 MILLION IN ASSETS SUCH TINY COMPANIES ARE NOTHING NEW TO RENAISSANCE ALTHOUGH THE CONVERTIBLE PREFERRED STOCK FOCUS IS A NEW WRINKLE RENAISSANCE'S USUAL INVESTMENT VEHICLE HAS BEEN PRIVATELY PLACED CONVERTIBLE DEBENTURES WHICH ACT MUCH THE SAME AS CONVERTIBLE PREFERRED STOCK EXCEPT THAT AS DEBT THEY OFFER MORE SECURITY SHOULD A COMPANY GO BELLY UP SINCE THEY ARE HIGHER UP ON THE BANKRUPTCYCOURT FOOD CHAIN IN 1990 THE FIRM INTRODUCED RENAISSANCE CAPITAL PARTNERS LTD A BUSINESSDEVELOPMENT COMPANY THAT HAS PURCHASED PRIVATELY PLACED CONVERTIBLE DEBT IN SEVEN SMALL COMPANIES IN INDUSTRIES AS DIVERSE AS BIOPHARMACEUTICALS COMMUNICATIONS AND ENVIRONMENTAL ENGINEERING LAUNCHED IN MID1990 WITH 1289 MILLION THE INVESTMENTS TODAY ARE VALUED AT MORE THAN 233 MILLION IN ADDITION THOSE INVESTMENTS HAVE RETURNED 354 MILLION TO INVESTORS IN QUARTERLY CASH DISTRIBUTIONS A 275 CUMULATIVE RETURN FROM INTEREST INCOME THE PROFILE OF A STANDARD RENAISSANCE INVESTMENT IS A MANUFACTURING OR SERVICE FIRM WITH 20 MILLION TO 30 MILLION IN ASSETS ALREADY PROFITABLE AND WHICH IS EITHER OUT OF FAVOR WITH OR UNKNOWN TO WALL STREET IN TRUE VALUEINVESTOR STYLE IT LOOKS FOR COMPANIES TRADING NEAR OR BELOW THEIR BOOK VALUE AND TRADING FOR LESS THAN FIVE TIMES CASH FLOW BECAUSE OF THE RISKY NATURE OF SUCH DIMINUTIVE COMPANIES BROKERS FAMILIAR WITH RENAISSANCE SAY THAT PAST SUCCESSES ASIDE INVESTING IN THE NEW FUND BOILS DOWN TO FAITH IN MR CLEVELAND HIS INVESTMENT PHILOSOPHY AND HIS ABILITY TO CHOOSE COMPANIES MR CLEVELAND BELIEVES THE BEST COMPANIES ARE THOSE WITH THE SIMPLEST PRODUCTS MEETING A CLEARLY DEFINED NEED AND THAT INVESTING IS A LONGTERM PARTNERSHIP WITH A COMPANY TO THAT END HE DOESN'T EVEN OWN A STOCKQUOTE MACHINE OF THE ROUGHLY 150 COMPANIES HE'S INVESTED IN OVER TWO DECADES ONLY FOUR HAVE GONE BANKRUPT OF COURSE THE RISK OF PICKING BAD COMPANIES IS COMPOUNDED BY RENAISSANCE'S FOCUS ON PRIVATELY PLACED SECURITIES WHICH BECAUSE THEY ARE ACQUIRED PRIVATELY AREN'T REGISTERED AS TRADABLE ISSUES WITH THE SECURITIES AND EXCHANGE COMMISSION MEANING THEY ARE ILLIQUID AND ALL BUT IMPOSSIBLE TO PURGE SHOULD A COMPANY STUMBLE BADLY MR MARSHALL NOTES THOUGH THAT BECAUSE RENAISSANCE TRADITIONALLY GAINS A VOICE ON A COMPANY'S BOARD OF DIRECTORS IT HOLDS SOME SWAY IN ADJUSTING MANAGEMENT OR INJECTING NEW IDEAS THE GROWTH AND INCOME FUND III WILL DEMAND A MINIMUM 5000 INVESTMENT AND CARRIES A 175 MANAGEMENT FEE IN ADDITION RENAISSANCE ALSO KEEPS 20 OF ANY REALIZED GAINS AFTER CASH DISTRIBUTIONS AS AN INCENTIVE FEE MR CLEVELAND ESTIMATES THE DIVIDENDS WILL YIELD ROUGHLY 7 ANNUALLY BECAUSE THE FUND WILL TRADE PUBLICLY INVESTORS CAN GET OUT BEFORE THEIR FIVEYEAR HITCH IS UP BUT THEY'LL FORFEIT THE FAVORABLE TAX TREATMENT POWELL INDUSTRIES JUMPED NEARLY 23 TO 675 AS A ROBERT W BAIRD ANALYST UPGRADED THE STOCK TO STRONG BUY FROM HOLD THE ANALYST CITED AN INCREASED ORDER BACKLOG AND THE LIKELIHOOD OF EARNINGS GROWTH IN THE SECOND HALF FOR ITS FISCAL FIRST QUARTER ENDED JAN 31 THE HOUSTON MAKER OF ELECTRICAL DISTRIBUTION AND CONTROL EQUIPMENT POSTED NET OF 628000 OR SIX CENTS A SHARE COMPARED WITH A LOSS OF 275000 OR THREE CENTS A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED A CHARGE OF 15 CENTS A SHARE TO ACCOUNT FOR POSTRETIREMENT BENEFITS CODA ENERGY DALLAS DROPPED MORE THAN 15 TO 475 ALTHOUGH ITS 1993 REVENUE INCREASED MORE THAN THREEFOLD FOR THE YEAR CODA EARNED 840000 OR SEVEN CENTS A SHARE COMPARED WITH 183000 OR TWO CENTS A SHARE THE YEAR BEFORE IN THE FOURTH QUARTER THE COMPANY'S NET JUMPED TO 619000 OR FOUR CENTS A SHARE FROM 224000 OR THREE CENTS A SHARE SMITH BARNEY SHEARSON RAISED ITS RATING FOR AUSTIN'S DELL COMPUTER TO OUTPERFORM FROM NEUTRAL THAT BOOSTED THE STOCK 15 TO 24125 EARLIER IN THE WEEK THE COMPANY REPORTED THAT IT'S REENTERING THE NOTEBOOK COMPUTER BUSINESS MAXXIM MEDICAL TRADED 156 TIMES ITS AVERAGE VOLUME AND GAINED 25 CENTS LARGELY ON A SECONDARY OFFERING OF TWO MILLION SHARES PRICED AT 1750 MAXXIM POSTED NET OF 2 MILLION OR 33 CENTS A SHARE INCLUDING A 380000 GAIN OR SIX CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED JAN 30 IN THE YEARAGO PERIOD IT EARNED 13 MILLION OR 22 CENTS A SHARE 9403020105 940302 RJR UNIT MAINTAINS LEVELS OF NICOTINE HAVE FALLEN NEW YORK COMMENTING ON ALLEGATIONS BY THE FOOD AND DRUG ADMINISTRATION RJ REYNOLDS TOBACCO CO SAID TOBACCO COMPANIES HAVE LOWERED TAR AND NICOTINE LEVELS IN CIGARETTES IN THE PAST 40 YEARS BY MORE THAN 60 THE COMPANY RELEASED A LETTER TO FDA COMMISSIONER DAVID A KESSLER PROMPTED BY THE FDA'S COMMENT THIS WEEK THAT THERE IS GROWING EVIDENCE THAT TOBACCO COMPANIES DELIBERATELY MAINTAIN THE LEVEL OF NICOTINE IN CIGARETTES AT ADDICTIVE LEVELS JAMES W JOHNSTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE TOBACCOMAKING UNIT OF RJR NABISCO HOLDINGS CORP SAID RJ REYNOLDS TOBACCO CO DOES NOT INCREASE THE NICOTINE IN THE TOBACCO WE USE IN THE MANUFACTURE OF OUR CIGARETTES THE LETTER CITED INDUSTRY STATISTICS SHOWING THAT THE AVERAGE NICOTINE LEVEL IN CIGARETTES HAS FALLEN TO 08 MILLIGRAM SINCE THE EARLY 1950S FROM 27 MILLIGRAMS AND THE AVERAGE TAR LEVEL HAS DROPPED TO 115 MILLIGRAMS FROM 37 MILLIGRAMS 9403020104 940302 FA TUCKER GROUP MULLS OPTIONS TO ALTER LIQUIDITY PROBLEMS' CHICAGO FA TUCKER GROUP INC DISCLOSING WHAT IT CALLED SERIOUS LIQUIDITY PROBLEMS SAID IT IS EXPLORING VARIOUS OPTIONS INCLUDING ASSET SALES A POSSIBLE MERGER OR A REORGANIZATION UNDER BANKRUPTCY LAWS THE ELECTRICAL CONTRACTING CONCERN ALSO SAID THE CITY OF CLEVELAND HAS ADVISED TUCKER THAT IF DEFAULTS AREN'T IMMEDIATELY CURED THE CITY WILL OBTAIN SERVICES FROM ANOTHER COMPANY TO WORK ON A MAJOR ELECTRICAL SERVICE PROJECT THERE TUCKER SAID THAT PROJECT VALUED AT 254 MILLION IS THE COMPANY'S LARGEST US CONTRACT ACCOUNTING FOR NEARLY 17 OF CONSOLIDATED REVENUE IN THE FIRST NINE MONTHS OF 1993 TUCKER SAID ITS INABILITY TO COMPLY WITH CERTAIN LOAN COVENANTS HAS RESULTED IN NEGOTIATIONS WITH LENDING BANKS OVER A POSSIBLE RESTRUCTURING OF ITS CREDIT FACILITY MEANWHILE IT DOES NOT APPEAR THAT THE BANKS WILL ADVANCE ANY FURTHER AMOUNTS TO COMPANY ENTITIES TUCKER SAID IN A NEWS RELEASE TUCKER SAID IF IT IS UNABLE TO SOLVE ITS FINANCIAL DIFFICULTIES ONE OR MORE OF ITS SUBSIDIARIES OR TUCKER ITSELF MAY SEEK TO REORGANIZE UNDER BANKRUPTCY LAWS THE COMPANY'S MOST RECENT EARNINGS REPORT FOR THE FIRST NINE MONTHS OF 1993 SHOWED REVENUE OF 461 MILLION AND A LOSS OF 49 MILLION OR 161 A SHARE TUCKER SHARES HAVEN'T TRADED ON THE AMERICAN STOCK EXCHANGE SINCE FEB 17 9403020102 940302 TEXAS JOURNAL LETTER TO THE EDITOR TORT REFORM CAPS AREN'T NEEDED IN YOUR FEB 16 ARTICLE NEW BUSINESS GROUP AIMS AT OLD GOAL TORT REFORM MICHAEL TOTTY REPORTS THAT A NEW COALITION OF BUSINESS EXECUTIVES AND PROFESSIONALS IN TEXAS IS ATTEMPTING A COMPREHENSIVE SOLUTION TO THE PUNITIVEDAMAGE PROBLEM THIS NEW GROUP PROPOSES SWEEPING CHANGES INCLUDING CAPS TO LIMIT PUNITIVE DAMAGES WHILE STUDIES ARE INCONCLUSIVE ON WHETHER THERE IS A PUNITIVEDAMAGE CRISIS LAST MONTH'S TEXAS SUPREME COURT DECISION IN TRANSPORTATION INSURANCE CO VS MORIEL IS AN IMPORTANT STEP FORWARD IN MAKING PUNITIVE DAMAGES MORE RATIONAL AND IN REFOCUSING ATTENTION ON HELPING JURIES MAKE BETTER DECISIONS IN MORIEL THE COURT SEPARATED THE LIABILITY DECISION FROM THE PUNITIVEDAMAGE DELIBERATIONS DESPITE REFORMGROUP FEARS THAT CHANGE SHOULD HELP RATIONALIZE AWARDS IN BUSINESS DISPUTES FIRST IT SHOULD PREVENT THE JURY FROM HEARING EVIDENCE OF NET WORTH IN THE LIABILITY STAGE SECOND IT PERMITS THE JURY TO HEAR EVIDENCE THAT WOULD MITIGATE PUNITIVE DAMAGES SUCH AS THE NUMBER OF JOBS TO BE LOST IF A BIG AWARD IS GIVEN WITHOUT INFLUENCING THE LIABILITY STAGE FINALLY THE TEXAS SUPREME COURT APPEARS TO BE MOVING TOWARD AN ENDORSEMENT OF JURY INSTRUCTIONS THAT WOULD GIVE MORE INFORMATION ABOUT HOW TO MAKE PUNITIVEDAMAGE DECISIONS MORE DETAILED JURY INSTRUCTIONS WOULD FOCUS THE JURY'S ATTENTION ON THE SPECIFIC CONSIDERATIONS THAT SHOULD GO INTO THE AWARD OF PUNITIVE DAMAGES FOR EXAMPLE EVIDENCE OF INTERNAL POLICIES AND PRACTICES OF THE COMPANY SUCH AS LEGAL OR ENVIRONMENTAL AUDITS WOULD BE ADMISSIBLE IN THE PUNITIVEDAMAGES STAGE OF A CASE DIMINISHING THE NEED FOR THE JURY TO PUNISH OR SEND A MESSAGE TO A CORPORATE DEFENDANT IMPROVEMENT IN THE JURY SYSTEM SHOULD BEGIN WITH IMPROVING THE QUALITY OF INFORMATION THAT GETS TO THE JURY ARBITRARY CAPS ON AWARDS SUCH AS THOSE SUGGESTED BY MANY REFORMERS WILL NOT ACHIEVE THE APPROPRIATE BALANCE BETWEEN DETERRING WRONGDOING IN OUR SOCIETY AND PREVENTING EXCESSIVE PUNISHMENT CAPS ON DAMAGES ARE MOTIVATED BY FEAR OF THE JURY SYSTEM RATHER THAN HARD STATISTICAL PROOF OF A SYSTEM GONE AWRY THE REFORMERS WOULD DO WELL NOT TO TINKER TOO MUCH WITH THE JURY SYSTEM THAT HAS WELLSERVED VICTIMS AND WRONGDOERS FOR CENTURIES 9403020100 940302 COMMODITIES CRUDE OIL PRICES RISE PRIOR TO RELEASE OF DATA ON REFINERY DECLINES AMID OTHER BULLISH SIGNS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CRUDE OIL ROSE IN NONDESCRIPT TRADING AS MARKET PLAYERS AWAITED THE RELEASE OF INVENTORY STATISTICS THAT WOUND UP SHOWING A SHARP DOWNTURN IN REFINERY OUTPUT OF PETROLEUM PRODUCTS AFTER THE CLOSE OF TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE AMERICAN PETROLEUM INSTITUTE REPORTED THAT US REFINERIES OPERATED AT 875 OF CAPACITY IN THE WEEK ENDED FEB 25 DOWN FROM 90 THE PRIOR WEEK THE LEVEL MATCHES THE LOWEST UTILIZATION RATE DURING THE PAST YEAR AND REFLECTS WHAT REFINING ENGINEERS CALL TURNAROUND SEASON THE TIME OF YEAR WHEN MANY PLANTS OR PORTIONS OF PLANTS ARE SHUT DOWN FOR MAINTENANCE AND OVERHAULS THE REFINERY DECLINE COUPLED WITH STRONG COLDWEATHERINDUCED DEMAND FOR HEATING OIL CAUSED A DROP OF 39 MILLION BARRELS IN INVENTORIES OF THAT PRODUCT AT THE SAME TIME DEMAND WAS 71 HIGHER THAN IT WAS LAST YEAR CALCULATED ROBERT BOSLEGO PRESIDENT OF BOSLEGO CORP A WINCHESTER MASS ENERGYCONSULTING AND INFORMATION FIRM THAT COULD BE BULLISH FOR PETROLEUM PRICES HE SAID THE LATEST STATISTICS WILL BE VIEWED FAVORABLY BY THE MARKET MR BOSLEGO PREDICTED BOTH THE DECLINE IN REFINERY UTILIZATION AND THE INVENTORY DRAWDOWN WERE STEEPER THAN MANY ANALYSTS HAD EXPECTED ON THE NEW YORK MERC YESTERDAY LIGHT SWEET CRUDE FOR APRIL DELIVERY ROSE 19 CENTS A BARREL TO SETTLE AT 1467 APRIL HEATING OIL JUMPED 066 CENT TO 4555 CENTS A GALLON AND APRIL GASOLINE ADVANCED 06 CENT TO 4575 CENTS A GALLON CRUDEOIL INVENTORIES IN THE LATEST WEEK DROPPED A STEEP 78 MILLION BARRELS TO ABOUT 3257 MILLION BARRELS THE API REPORTED THAT'S SIGNIFICANTLY LOWER THAN THEY WERE AT THIS TIME LAST YEAR AND FALL INTO THE LOWER END OF THE RANGE TRACKED BY STATISTICORIENTED INDUSTRY ANALYSTS MEANWHILE GASOLINE STOCKS BUCKED THE TREND BY RISING SLIGHTLY BUT MR BOSLEGO NOTED THAT GASOLINE DEMAND OVER THE MOSTRECENT FOURWEEK PERIOD WAS ACTUALLY 32 HIGHER THAN LAST YEAR YOU WOULD THINK THE HARSHER WEATHER CONDITIONS WOULD DAMP GASOLINE DEMAND HE SAID THE FACT THAT IT REMAINS AS STRONG AS IT HAS DESPITE THE WEATHER TO ME MEANS THAT WHEN WEATHER CONDITIONS CLEAR UP YOU COULD SEE QUITE ROBUST DEMAND HE ADDED INDUSTRY ANALYSTS GENERALLY EXPLAIN THE HEARTY GASOLINE DEMAND BY CITING THE STRONG ECONOMY AND LOW RETAIL PRICES IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLDFUTURES PRICES FELL IN A DAY OF RETRENCHMENT AFTER STRONG GAINS ON MONDAY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN 310 TO 37940 AN OUNCE GENERALLY THE GOLD MARKET IS JITTERY ABOUT THE PROSPECT OF A RETURN OF INFLATION BUT TRADERS AREN'T CONVINCED THAT SUCH A RETURN WILL ACTUALLY OCCUR ANALYSTS SAID UNTIL IT BECOMES CLEAR WHETHER INFLATION IS ACTUALLY PICKING UP THEY SAID GOLD IS LIKELY TO CONTINUE TO FLUCTUATE WITHIN THE 375TO385ANOUNCE TRADING RANGE IN WHICH IT HAS REMAINED FOR THE PAST FEW WEEKS ANY MEANINGFUL INCREASE IN INFLATION HOWEVER WOULD BE EXPECTED TO PUSH GOLD'S PRICE HIGHER GRAINS & SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SETTLED MIXED A RECORD SOYBEAN HARVEST IS SHAPING UP IN SOUTH AMERICA RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO IS PREDICTING RECORD HARVESTS IN BRAZIL ARGENTINA AND PARAGUAY FOR COMBINED PRODUCTION OF ABOUT 40 MILLION METRIC TONS OR ROUGHLY 146 BILLION BUSHELS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MAY DELIVERY ROSE 075 CENT A BUSHEL TO SETTLE AT 68450 A BUSHEL GRAIN PRICES HAVE DRIFTED FOR SEVERAL SESSIONS BUT TRADERS SAID THEY DETECTED SOME FIRMNESS YESTERDAY WHICH THEY MOSTLY ATTRIBUTE TO FARMERS RESISTING SELLING AT THESE LEVELS SOME MIDWEST GRAIN ELEVATORS RAISED THEIR BIDS YESTERDAY IN AN ATTEMPT TO LURE CORN FROM FARM BINS 9403020099 940302 TEAMSTERS FILES CLAIM AGAINST UPS SEEKING DAMAGES FROM STRIKE WASHINGTON THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS FILED A COUNTERCLAIM AGAINST UNITED PARCEL SERVICE OF AMERICA INC CHARGING THAT THE COMPANY IS RESPONSIBLE FOR DAMAGES FROM A RECENT STRIKE THE EXACT DOLLAR AMOUNT HASN'T BEEN DETERMINED BUT THE TEAMSTERS SAID IT WILL ASK FOR MILLIONS OF DOLLARS IN DAMAGES FROM THE PACKAGEDELIVERY COMPANY FOR IMPOSING A NEW PACKAGEWEIGHT LIMIT THAT FORCED A RECENT STRIKE UPS BASED IN ATLANTA RAISED ITS PACKAGE LIMIT TO 150 POUNDS FROM 70 POUNDS ON FEB 7 SPARKING A ONEDAY STRIKE BY THE TEAMSTERS WHO SAID THE NEW WEIGHTS WERE DANGEROUS TO ITS WORKERS SHORTLY AFTER THE STRIKE UPS SUED THE TEAMSTERS FOR 50 MILLION IN DAMAGES SAYING THE UNION DEFIED A COURT ORDER AND THAT THE STRIKE WAS ILLEGAL IN ITS RESPONSE TO THE SUIT FILED IN US DISTRICT COURT HERE YESTERDAY THE TEAMSTERS SAID THE CASE IS WITHOUT MERIT AND ADDED THAT UPS IS LIABLE FOR DAMAGES FOR MEMBERS' LOST WAGES AND OTHER COMPENSATION RELATED TO THE STRIKE UPS SAID THE TEAMSTERS' CLAIM IS AN ATTEMPT TO DRAW ATTENTION FROM THE LEGITIMATE SUIT AGAINST THE UNION 9403020098 940302 FOREIGN EXCHANGE DOLLAR GAINS AGAINST MOST CURRENCIES ON NEW SIGNS ABOUT INFLATION IN US BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST MOST CURRENCIES YESTERDAY ON FRESH EVIDENCE THAT THE US ECONOMY IS VULNERABLE TO INFLATIONARY PRESSURES RENEWING SPECULATION OF MORE TIGHTENING OF LIQUIDITY BY THE US FEDERAL RESERVE THE SPECULATION ALLOWED THE DOLLAR TO RECOVER STRONGLY FROM AN EARLIER DROP AGAINST THE MARK WHICH WAS PROMPTED BY INDICATIONS THAT GERMANY'S CENTRAL BANK ISN'T IN ANY HURRY TO EASE INTEREST RATES THAT SIGNAL FROM THE BUNDESBANK'S MONEYMARKET OPERATIONS HAD PUSHED DOWN THE DOLLAR TO LOWS FOR THIS YEAR AGAINST THE GERMAN CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17095 MARKS UP FROM 17041 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10460 YEN UP SLIGHTLY FROM 10450 YEN MONDAY STERLING WAS TRADING AT 14895 UP FROM 14855 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10458 YEN AND AT 17098 MARKS THE DOLLAR CLAWED BACK FROM EARLIER LOWS AGAINST THE MARK ON REVISED DATA ON THE US GROSS DOMESTIC PRODUCT OR TOTAL VALUE OF THE NATION'S GOODS AND SERVICES THAT SHOWED SURPRISINGLY STRONG GROWTH OF 75 IN 1993'S FOURTH QUARTER THE US COMMERCE DEPARTMENT'S FIGURE FAR SURPASSED MARKET FORECASTS OF 67 GROWTH AS WELL AS THE DEPARTMENT'S OWN EARLIER PROVISIONAL ESTIMATE OF 59 WITH THE RELEASE 90 MINUTES LATER OF NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT DATA THE DOLLAR GALLOPED TOWARD EVEN HIGHER GROUND THE MANAGERS GROUP'S FEBRUARY COMPOSITE INDEX ACTUALLY FELL TO 566 FROM THE PREVIOUS MONTH'S 577 BUT THE MARKET WAS FOCUSED ON THE CRUCIAL PRICEINDEX COMPONENT WHICH SOARED TO 67 FROM 598 THE HIGHEST LEVEL SINCE OCTOBER 1990 THE FOREIGNEXCHANGE MARKET IS LESS FOCUSED ON GROWTH THAN IT IS ON PRICE PRESSURE SAID ERIC NICKERSON SENIOR ECONOMIST AT THE BANK OF AMERICA IN SAN FRANCISCO TRADERS SAID THE MARKET INTERPRETED THAT COMPONENT TO MEAN RENEWED PRESSURE FOR FURTHER INTERESTRATE INCREASES BY THE FEDERAL RESERVE DESPITE COMMENTS BY FED GOVERNOR LAWRENCE LINDSEY MONDAY INDICATING THE AGENCY ISN'T IN ANY RUSH TO RAISE RATES BUT THE DOLLAR'S RISE WAS CAPPED BY THE SHARP SELLOFF IN THE US BOND AND EQUITY MARKETS PROMPTED BY THOSE SAME INFLATION FEARS FOLLOWING THE PURCHASING MANAGERS' DATA AND THE GDP GROWTH FIGURES MR NICKERSON SAID THE DROP IN THE BOND AND EQUITY MARKETS PUSHED THE DOLLAR OFF ITS HIGHS IN STEP WITH DOLLAR WEAKNESS LAST WEEK AMID TURBULENCE IN US FINANCIAL MARKETS WEAKNESS IN THE BOND AND EQUITY MARKETS LEADS TO A FLIGHT OF CAPITAL OUT OF THE US AND THUS HURTS THE DOLLAR EARLIER YESTERDAY THE DOLLAR TOOK A POUNDING AGAINST THE MARK AFTER THE BUNDESBANK SHAVED ONLY THREE BASIS POINTS OFF ITS RATE FOR SECURITIESREPURCHASE AGREEMENTS OR REPOS LOWERING THE RATE TO 597 FROM 6 THE DOLLAR DROPPED TO AN INTRADAY LOW OF 16955 MARKS ITS LOWEST LEVEL SINCE DEC 27 WHEN IT TOUCHED 16950 MARKS THE BUNDESBANK USES REPOS AS ITS PRIMARY INSTRUMENT IN INFLUENCING MONEY MARKETS WHILE IT WAS THE FIRST CUT IN THE REPO RATE SINCE EARLY DECEMBER THREE BASIS POINTS WAS KIND OF SKIMPY TO SAY THE LEAST SAID CHRISTOPHER BOURDAIN CORPORATE TRADER FOR CREDIT SUISSE IN NEW YORK BUT MR BOURDAIN NOTED THAT THE MOVE ASSURED THE MARKET THAT GERMANS WOULD BE VERY CAUTIOUS IN FUTURE LOWERING OF RATES AND THAT THE BUNDESBANK WAS KEEN ON ENSURING A STRONG MARK 9403020097 940302 UNION PACIFIC ACQUIRES OIL GAS ASSETS OF CYPRUS AMAX IN 819 MILLION PACT BY LOURDES LEE VALERIANO AND MARJ CHARLIER STAFF REPORTERS OF THE WALL STREET JOURNAL UNION PACIFIC CORP IN ITS LARGEST NATURALGAS PURCHASE SINCE ENTERING THAT INDUSTRY IN THE 1950S SAID IT AGREED TO ACQUIRE THE OIL AND GAS ASSETS OF CYPRUS AMAX MINERALS CO FOR 819 MILLION THE ACQUISITION WILL INCREASE THE BETHLEHEM PA RAILROAD AND NATURAL RESOURCES COMPANY'S GAS RESERVES BY 20 EVEN AFTER IT SELLS SOME OF THE NEW PROPERTIES IN A RELATED TRANSACTION MOST OF THE PROPERTIES THE COMPANY WILL RETAIN AFTER THE ACQUISITION ARE LONGLIVED NATURAL GAS PRODUCING GATHERING AND PROCESSING ASSETS IN TEXAS AND LOUISIANA SOME OF WHICH ARE CLOSE TO HOLDINGS ALREADY OPERATED BY UNION PACIFIC IT'S ONE OF THE LARGER OIL AND GAS ACQUISITIONS IN THE LAST THREE YEARS SAID DAVID BRADSHAW OIL AND GAS ANALYST FOR PAINEWEBBER THE COMPANY SAID THAT UPON CLOSING IT WILL SELL AMAX'S NORTHERN DIVISION INCLUDING PROPERTIES AND FACILITIES IN OKLAHOMA THE TEXAS PANHANDLE NEW MEXICO AND COLORADO FOR 945 MILLION TO A QUESTAR CORP UNIT UNIVERSAL RESOURCES CORP THIS WILL BRING THE COST OF THE AMAX TRANSACTION TO 725 MILLION IN NEW YORK STOCK EXCHANGE TRADING UNION PACIFIC SHARES FELL 1125 A SHARE TO 58625 A SHARE WHILE CYPRUS AMAX FELL 375 CENTS TO 29875 A SHARE WE'D LOOKED AT A NUMBER OF NATURAL GAS PROPERTIES IN THE LAST THREE YEARS NONE FIT AS WELL AS THIS IN TERMS OF LOCATION AND TYPE OF GEOLOGIC FORMATION SAID JACK MESSMAN PRESIDENT AND CHIEF EXECUTIVE OF UNION PACIFIC RESOURCES CO UNION PACIFIC'S OIL AND GAS UNIT IN FORT WORTH TEXAS UNION PACIFIC SAID IT WILL FUND THE ACQUISITION PRIMARILY THROUGH LOANS INITIALLY COMMERCIAL PAPER HOWEVER THE SALE OF WILMINGTON FIELD CALIF PROPERTIES TO THE PORT OF LONG BEACH FOR 405 MILLION WHICH ALSO WAS ANNOUNCED YESTERDAY WILL PROVIDE PROCEEDS FOR THE ACQUISITION A SPOKESMAN SAID THAT UNION PACIFIC'S DEBT TO CAPITALIZATION LEVEL WILL RISE BECAUSE OF THE ACQUISITION BUT WILL REMAIN WELL WITHIN THE TARGET RANGE OF 40 HE ADDED THAT UNION PACIFIC ISN'T CONTEMPLATING ANY OTHER SIGNIFICANT ACQUISITIONS IN THE NEAR FUTURE MEANWHILE DENVERBASED CYPRUS AMAX WHICH PUT THE AMAX PROPERTIES UP FOR SALE LAST YEAR SAID IT WILL USE SOME OF THE PROCEEDS TO FINANCE A PORTION OF MINING PROJECTS IT IS PURSUING IN SOUTH AMERICA AND TO PAY FOR SOME OF THE COSTREDUCTION PROJECTS AT ITS US MINES THE COMPANY WHICH TOOK ON ABOUT 2 BILLION IN DEBT WHEN IT ACQUIRED AMAX INC LAST FALL DOESN'T EXPECT TO USE ANY OF THE PROCEEDS TO PAY DOWN DEBT A SPOKESMAN SAID BUT CYPRUS AMAX MAY USE SOME OF THE CASH AS A WAR CHEST TO ACQUIRE ADDITIONAL COMPANIES OR MINES SAID VIC LAZAROVICI MINING ANALYST AT SMITH BARNEY SHEARSON JIM HIGGINS AN ANALYST WITH BROWN BROTHERS HARRIMAN CALLED THE ACQUISITION AN EXCELLENT BUY HE SAID THE COMPANY'S ESTIMATED PRICE PER THOUSAND CUBIC FEET OF GAS RESERVES 77 CENTS WAS RIGHT IN LINE WITH RECENT ACQUISITIONS THE WELLHEAD PRICE OF NATURAL GAS WHICH FELL TO A LOW OF 1 PER THOUSAND CUBIC FEET IN EARLY 1992 HAS RECOVERED TO ABOUT 2 PER THOUSAND CUBIC FEET MR MESSMAN OF UNION PACIFIC RESOURCES SAID THAT OF THE 725 MILLION PRICE FOR THE PROPERTIES THE COMPANY WILL RETAIN 424 MILLION WILL GO TO PAYING FOR RESERVES OF 550 BILLION CUBIC FEET OF GAS EQUIVALENTS AND 301 MILLION FOR INFRASTRUCTURE SUCH AS PLANT FACILITIES AND GATHERING LINES MR MESSMAN SAID THAT AS A RESULT OF THE PURCHASES UNION PACIFIC RESOURCES ALREADY ONE OF THE COUNTRY'S MOST ACTIVE DRILLERS WILL BOOST ITS DRILLING ACTIVITY BY 240 WELLS A YEAR TO AN AVERAGE OF 660 WELLS IN 1992 UNION PACIFIC RESOURCES HAD OPERATING REVENUE OF 126 BILLION AND OPERATING INCOME OF 315 MILLION SEPARATELY MOODY'S INVESTOR SERVICE INC CONFIRMED UNION PACIFIC'S RATINGS SAYING THAT EVEN WITH MODEST RETURNS ON THE NEW INVESTMENT CREDIT QUALITY MEASURES WILL IMPROVE IN THE INTERMEDIATE TERM 9403020096 940302 TEXAS JOURNAL IF THEY HAVE A LOT OF CARS TO FIX IS IT GOOD NEWS BY BOB ORTEGA SELLING CARS IN DOWNTOWN SAN ANTONIO MAY NOT MAKE MUCH ECONOMIC SENSE BUT FIXING THEM THAT'S SOMETHING ELSE FORD MOTOR CO HAS JOINED FORCES WITH SEVEN SUBURBAN FORD AND LINCOLNMERCURY DEALERS TO OPEN A DOWNTOWN FORD REPAIR SHOP FORD SAYS THE SHOP THE FIRST TO BE OPERATED BY A GROUP OF DEALERS AS PARTNERS MAY SERVE AS A MODEL FOR SIMILAR CENTERS NATIONWIDE THE DEALERS WILL CONTINUE TO OFFER REPAIR WORK ON THEIR OWN PREMISES BUT THE SHOP WILL PROVIDE AN OPTION TO FORD DRIVERS WHO WORK OR LIVE DOWNTOWN WHERE THERE HASN'T BEEN A FORD DEALER SINCE THE LAST ONE MOVED TO THE SUBURBS LAST SUMMER FOR THE DEALERS THE NEW SHOP HAS TWO PURPOSES FIRST RECAPTURE LOST SERVICE DOLLARS DAVID CAPLAN A FORD SPOKESMAN SAYS THAT IN RECENT YEARS COMPETITION FROM LOWPRICED TUNEUP BRAKEREPAIR AND MAINTENANCE SHOPS ACROSS THE COUNTRY HAS CAPTURED MORE THAN TWOTHIRDS OF NONWARRANTY SERVICE WORK WE'LL BE AS COMPETITIVE AS ANYONE IN OUR PRICING SAYS BOB CROW PRESIDENT OF THE NORTHSIDE FORD DEALERSHIP AND THE MANAGING PARTNER OF THE FORD & LINCOLNMERCURY AUTO CARE CENTER AS THE SHOP IS CALLED THE ULTIMATE GOAL THOUGH IS MORE BASIC SELL MORE FORDS IF WE MAKE FORD OWNERS FEEL THEY'LL BE TAKEN CARE OF PROPERLY FOR THE LIFE OF THE VEHICLE SAYS MR CAPLAN THEY'LL BE MORE INCLINED TO PURCHASE ANOTHER FORD 9403020095 940302 TEXAS JOURNAL RAILAGENCY RACE PITS POLITICAL OPPOSITES BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN AT A TIME OF ANTIINCUMBENT FEVER TEXAS RAILROAD COMMISSIONER JAMES E NUGENT OUGHT TO BE SWEATING BULLETS OVER TUESDAY'S DEMOCRATIC PRIMARY AFTER ALL AT AGE 71 MR NUGENT HAS HAD ONE OF THE LONGEST POLITICAL CAREERS IN TEXAS HE FIRST RAN FOR OFFICE IN THE EARLY '50S AND HAS BEEN ON THE COMMISSION SINCE 1979 HIS REPUTATION FOR POLITICAL RUTHLESSNESS HAS WON HIM ENEMIES HE LONG AGO EARNED THE EPITHET SNAKE HE SAYS BECAUSE OF HIS SKILL IN KILLING OTHERS' LEGISLATIVE INITIATIVES LATELY HE'S BEEN TAGGED AS PERHAPS THE STATE'S BIGGEST HURDLE TO TRUCKING DEREGULATION WHICH PROPONENTS SAY COULD GIVE A STRONG BOOST TO THE TEXAS ECONOMY CHALLENGER ROBERT EARLEY MEANWHILE IS HIS POLITICAL OPPOSITE THE PERSONABLE MR EARLEY 33YEAROLD CHAIRMAN OF THE TEXAS HOUSE ENERGY COMMITTEE IS RUNNING ON A PLEDGE TO REINVENT THE RAILROAD COMMISSION WHICH CONTRARY TO ITS NAME REGULATES OIL AND GAS PRODUCTION INTRASTATE TRUCKING AND BUS LINES NATURAL GAS UTILITIES AND OPENPIT MINING IN PARTICULAR MR EARLEY IS DEMANDING THAT THE AGENCY LIFT ITS STRANGLEHOLD ON INTRASTATE TRUCKING RATES EXPAND THE NUMBER OF OPERATING PERMITS FOR MINORITY AND WOMENOWNED TRUCKING COMPANIES AND MORE AGGRESSIVELY PROMOTE ALTERNATIVE FUELS THAT STANCE HAS WON MR EARLEY ENDORSEMENTS FROM FOUR OF THE STATE'S LARGEST NEWSPAPERS AND DEMOCRATIC BLACK AND HISPANIC ORGANIZATIONS IT ALL SOUNDS PRETTY BLEAK FOR MR NUGENT BUT IT ISN'T MR NUGENT REMAINS COOL POLITICAL ANALYSTS FULLY EXPECT HIM TO TROUNCE HIS YOUNGER OPPONENT A RECENT POLL GAVE MR NUGENT 44 OF THE LIKELY VOTE COMPARED WITH 10 FOR MR EARLEY MR NUGENT BOASTS THAT HE HAS WON 29 CONTESTED ELECTIONS AND THAT HE THRASHED HIS TWO MOST RECENT CHALLENGERS FOR THE POST EARLEY IS COMING DOWN THE SAME TRAIL AND DOING THE SAME THINGS HE SAYS AND HE'LL DO ABOUT AS WELL IT'S EASY TO UNDERSTAND WHY AND THE REASONS SAY A LOT ABOUT THE HIDEBOUND NATURE OF THE RAILROAD COMMISSION FOR DESPITE THE DWINDLING IMPORTANCE OF ENERGY TO THE STATE'S ECONOMY THE AGENCY'S AGENDA REMAINS DOMINATED BY INDEPENDENT OIL AND GAS PRODUCERS WHICH PREFER THE COMMISSION'S AND MR NUGENT'S CONSERVATIVE APPROACH THIS IS TRUE EVEN AS NATURAL GAS EASES AHEAD OF OIL IN IMPORTANCE INDEPENDENT GAS PRODUCERS PRAISE MR NUGENT'S 10YEAR EFFORT TO SET STRICTER LIMITS ON NATURALGAS PRODUCTION THE EFFORTS WHICH EFFECTIVELY SHORED UP GAS PRICES WERE SUPPORTED BY MOST SMALL AND MIDSIZE INDEPENDENTS BUT WERE OPPOSED BY LARGE GAS PRODUCERS INDEPENDENTS HAVEN'T BEEN SHY ABOUT BACKING UP SUCH FEELINGS WITH THEIR WALLETS SO FAR MR NUGENT HAS AMASSED A CAMPAIGN WAR CHEST OF NEARLY 1 MILLION LARGELY FROM WEALTHY ENERGY BARONS WAGNER & BROWN LTD OF MIDLAND GAVE 2500 AND HOUSTON OILMAN GEORGE P MITCHELL PUT UP 2000 PROMINENT REPUBLICANS ALSO CAME THROUGH UNSUCCESSFUL GUBERNATORIAL CANDIDATE CLAYTON WILLIAMS JR OF MIDLAND CONTRIBUTED 5000 AS DID DALLAS OILMAN T BOONE PICKENS MR EARLEY MEANWHILE HAS RAISED ONLY 130000 ONE OF HIS BIGGEST FINANCIAL BACKERS IS AMOCO CORP'S TEXAS POLITICAL ACTION COMMITTEE WHICH CONTRIBUTED 10000 AMOCO PRODUCTION CO AND A DOZEN OTHER MAJOR AND INDEPENDENT OIL CONCERNS HAVE BEEN EMBROILED IN A FOURYEAR FIGHT OVER THE COMMISSION'S OILPUMPING LIMITS IN THE VAST EAST TEXAS OIL FIELD MR NUGENT FAVORS THE RESTRICTIONS WHILE MR EARLEY SAYS HE IS WILLING TO RECONSIDER THE LIMITS AN AMOCO SPOKESMAN SAYS THE PAC'S SUPPORT ISN'T RELATED TO THE DISPUTE WE KNEW WE WOULD HAVE A HARD TIME RAISING MONEY MR EARLEY SAYS BUT IT'S THE EFFECTIVENESS OF HOW WE SPEND IT THAT COUNTS HE IS DEPENDING ON THE SUPPORT OF BLACK HISPANIC AND URBAN DEMOCRATS TO COUNTERACT MR NUGENT'S SPENDING POWER MR EARLEY ALSO HAS TO OVERCOME THE PUBLIC'S WEAK UNDERSTANDING OF WHAT THE RAILROAD COMMISSION ACTUALLY DOES WITH ITS 1000 EMPLOYEES AND 50 MILLION BUDGET CREATED IN 1891 TO DEFEND THE STATE'S FARMERS FROM ABUSES BY THE RAILROADS THE AGENCY'S MISSION LATER SHIFTED MOSTLY TO OIL AND GAS REGULATION MR EARLEY PROPOSES CHANGING THE AGENCY'S NAME TO THE TEXAS COMMISSION ON ENERGY AND TRANSPORTATION HE ALSO CALLS FOR RECORDING AGENCY HEARINGS THE MINUTES OF THE MEETINGS ONLY RECORD THE ACTIONS OF THE COMMISSIONERS IT'S ONE OF THE LEAST SCRUTINIZED STATE AGENCIES MR EARLEY SAYS MR EARLEY IS COUNTING ON THE ISSUE OF TRUCKING DEREGULATION AND ITS PROMISED STIMULUS TO THE STATE'S ECONOMY TO WIN VOTERS HE CALLS FOR REMOVING THE PROHIBITIVELY HIGH BARRIERS FOR COMPANIES ESPECIALLY MINORITYOWNED FIRMS TO GET STATEWIDE COMMONCARRIER OPERATING LICENSES COUNTING ON THE INCREASED COMPETITION TO BRING DOWN RATES MR NUGENT HAS BEEN THE COMMISSION'S MOST FORCEFUL OPPONENT OF DEREGULATION WHICH HE ARGUES WOULD ALLOW LARGE NATIONAL COMPANIES TO DOMINATE THE INDUSTRY AND WIPE OUT THOUSANDS OF JOBS THE CUTTHROAT PRICE COMPETITION THAT WOULD FOLLOW DEREGULATION HE WARNS WOULD ENCOURAGE TRUCKING COMPANIES TO CUT CORNERS ON SAFETY AND RAISE PRICES AND REDUCE SERVICES FOR RURAL AREAS BESIDES HE SAYS IF SOMEONE DOESN'T LIKE THE WAY WE REGULATE THEY CAN GO TO THE LEGISLATURE AND CHANGE IT 9403020094 940302 PEPPERAND SALT TO BUY OR SELL THE WRONG ONES AND NOW I SEE THE LIGHT UNTIL THEY'RE GOTTEN RIGHT 9403020093 940302 TECHNOLOGY LILLY'S PROZAC APPROVED BY FDA TO TREAT OCD INDIANAPOLIS ELI LILLY & CO RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ITS PROZAC DRUG TO TREAT OBSESSIVECOMPULSIVE DISORDER PROZAC IS ALREADY THE PHARMACEUTICAL COMPANY'S BIGGEST PRODUCT WITH 1993 SALES ESTIMATED AT ABOUT 12 BILLION THE DRUG WAS CLEARED BY THE FDA IN 1987 FOR TREATING SEVERE DEPRESSION THE FDA'S LATEST ACTION MAKES PROZAC THE ONLY PRODUCT THAT CAN BE MARKETED IN THE U S FOR BOTH CLINICAL DEPRESSION AND WHAT IS KNOWN AS OCD THE ONLY DRUG THAT HAS THUS FAR HAD FDA APPROVAL AS A TREATMENT FOR OCD IS CIBAGEIGY'S ANAFRANIL OCD AFFECTS SOME FIVE MILLION AMERICANS PEOPLE WITH THE DISORDER SUFFER FROM UNCONTROLLABLE IDEAS OR IMPULSES THAT THEY USUALLY KNOW ARE IRRATIONAL SUFFERERS SEEK TO RELIEVE THEIR DISTRESS THROUGH SOME FORM OF RITUALISTIC BEHAVIOR SOME PEOPLE WITH OCD ARE SO PREOCCUPIED BY THEIR BEHAVIOR THAT IT'S DIFFICULT FOR THEM TO FUNCTION NORMALLY JAMES BROATCH EXECUTIVE DIRECTOR OF THE NONPROFIT OC FOUNDATION IN MILFORD CONN NOTED THAT PROZAC IS ALREADY BEING USED TO TREAT OCD ONCE A DRUG HAS RECEIVED FDA MARKETING CLEARANCE DOCTORS ARE FREE TO PRESCRIBE IT FOR ALL AILMENTS WHERE THEY CONSIDER IT POTENTIALLY BENEFICIAL SMITHKLINE BEECHAM'S PAXIL ANTIDEPRESSANT AND PFIZER INC'S ZOLOFT ARE ALSO CURRENTLY PRESCRIBED FOR THE DISORDER HE SAID 9403020092 940302 WHEELINGPITTSBURGH STEEL IS STRUCK UNIT MAY MISS PART OF STRONG RECOVERY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED STEELWORKERS UNION STRUCK WHEELINGPITTSBURGH CORP'S STEEL UNIT WHICH COULD FORCE THE NATION'S 10THLARGEST STEELMAKER TO MISS PART OF THE INDUSTRY'S STRONG RECOVERY THE USW WHICH REPRESENTS 4700 WORKERS AT WHEELINGPITTSBURGH STEEL CORP CALLED THE STRIKE AT 325 AM YESTERDAY AFTER TALKS COLLAPSED AND ITS LABOR AGREEMENT EXPIRED WHEELINGPITTSBURGH WHICH EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN 1991 IS ALONE IN BEING HIT BY A STRIKE IN THE CURRENT ROUND OF LABOR TALKS SEVERAL MAJOR INTEGRATED PRODUCERS INCLUDING INLAND STEEL INDUSTRIES INC NATIONAL STEEL CORP AND BETHLEHEM STEEL CORP REACHED PATTERN AGREEMENTS LAST YEAR SIMILAR TO THE ONE UNDER NEGOTIATION AT WHEELINGPITTSBURGH LIKEWISE USX CORP'S US STEEL GROUP SOFTENED AN INITIAL HARD LINE SOMEWHAT AND REACHED AN AGREEMENT LAST FALL LONG BEFORE ITS PACT EXPIRED IN JANUARY A STRIKEBOUND WHEELINGPITTSBURGH COULD LOSE SHIPMENTS AND PROFITS IF THE WORK STOPPAGE IS PROLONGED IT IS TOUGH TO WALK AWAY FROM THIS STRONG OF A MARKET WITH PRICES AND PROFIT MARGINS AS THEY ARE SAID CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC THE COMPANY HAS TO WEIGH THAT AGAINST AGREEING TO A CONTRACT IT BELIEVES WILL MAKE IT UNCOMPETITIVE IN THE FUTURE HE ADDED EVEN IF THE STRIKE LASTS LONG ANALYSTS DON'T EXPECT OTHER DOMESTIC STEELMAKERS TO BENEFIT GREATLY BECAUSE THEY ARE ALREADY OPERATING AT OR NEAR CAPACITY EVERYBODY IS SOLD OUT ON FLATROLLED STEEL SAID CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES AS A RESULT IMPORTS MAY HAVE TO FILL THE VOID FOR NOW IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WHEELINGPITTSBURGH'S STOCK FELL 1 OR 55 TO 1725 A TOP UNION GOAL IN THE TALKS AT WHEELINGPITTSBURGH IS FOR IMPROVED PENSION BENEFITS INCLUDING A PROVISION THAT ALLOWS PENSION PAYMENTS AFTER 30 YEARS OF SERVICE BUT WHEELINGPITTSBURGH BASED WHEELING WVA SAID IT IS HAMSTRUNG BY AN AGREEMENT WITH THE PENSION BENEFIT GUARANTY CORP RELATING TO THE TERMINATION OF ITS PENSION FUND WHEN IT WAS OPERATING UNDER CHAPTER 11 BANKRUPTCY COURT PROTECTION FROM 1985 TO 1991 THE COMPANY SAID ITS CONTRACT PROPOSAL ADDRESSED THE UNION'S PENSION DEMANDS IN A MANNER CONSISTENT WITH THE TERMS OF THE EXISTING AGREEMENT BETWEEN IT AND THE PENSION BENEFIT GUARANTY IT IS ALSO OFFERING WAGE INCREASES SIGNING BONUSES BENEFIT ENHANCEMENTS ADDITIONAL HOLIDAYS AND GUARANTEED EMPLOYMENT THE UNION ALSO WANTS IMPROVEMENTS IN HEALTH CARE AND BETTER FUNDING OF RETIREE INSURANCE AND WHILE IT AGREED TO SOME WORKRULE CHANGES THE UNION SAID IT REFUSED TO GO ALONG WITH A COMPANY PROPOSAL THAT WOULD ESSENTIALLY MERGE ALL CRAFTS THUS ELIMINATING WORKER SPECIALTIES HOWEVER A WHEELINGPITTSBURGH SPOKESMAN CONTENDED THAT THE COMPANY'S CONTRACT PROPOSAL IS SUBSTANTIALLY SIMILAR TO THAT AGREED TO WITH THE OTHER STEEL COMPANIES 9403020090 940302 CORNING'S METPATH UNILAB CORP TO SETTLE US CHARGES OF FRAUD WASHINGTON TWO BLOODTESTING LABORATORIES AGREED TO PAY THE US 11 MILLION TO SETTLE CHARGES THEY SUBMITTED FALSE CLAIMS TO THE GOVERNMENT FOR UNNECESSARY BLOOD TESTS THE JUSTICE DEPARTMENT SAID THE TWO FIRMS CORNING INC'S METPATH CLINICALTESTING DIVISION AND UNILAB CORP IN TARZANA CALIF PERFORMED TESTS THAT HADN'T BEEN REQUESTED BY PENTAGON DOCTORS WHO PROVIDE HEALTH CARE FOR CIVILIAN DEPENDENTS ACCORDING TO ASSISTANT ATTORNEY GENERAL FRANK HUNGER HE SAID THEY MASKED THE CHARGES FOR THE TESTS IN THEIR BILLS CORNING IS BASED IN CORNING NY UNILAB FORMERLY DID BUSINESS AS METWEST INC THEN PART OF METPATH THIS CASE IS PART OF THE DEPARTMENT'S CONTINUING EFFORT TO INVESTIGATE AND VIGOROUSLY PROSECUTE INDEPENDENT BLOOD LABORATORIES AND OTHER HEALTHCARE PROVIDERS WHO ABUSE OR DEFRAUD THE FEDERAL HEALTHCARE SYSTEM SAID MR HUNGER WHO HEADS THE DEPARTMENT'S CIVIL DIVISION LAST SEPTEMBER METPATH AND METWEST AGREED TO A 398 MILLION FINE FOR SIMILAR PRACTICES INVOLVING THE MEDICARE PROGRAM CORNING AND METPATH COULDN'T BE REACHED FOR COMMENT A UNILAB EXECUTIVE SAID THE SETTLEMENT WON'T HAVE MUCH FINANCIAL IMPACT ON US BECAUSE UNILAB'S PIECE WAS ONLY BETWEEN 35000 AND 40000 THE BALANCE OF THE 11 MILLION PACT WILL BE PAID BY CORNING'S METPATH DIVISION HE SAID 9403020089 940302 INDUSTRY FOCUS EUROPEANS NO LONGER SCOFF AT INTERACTIVE MULTIMEDIA MEDIA GIANTS NOW RUSH TO FOLLOW US LEAD IN NEW TWOWAY SERVICES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR THE PAST FEW YEARS WHENEVER THE TERM MULTIMEDIA CAME UP IN MANY MEDIA BOARDROOMS AROUND EUROPE IT GOT A SMUG SNICKER IT WAS SCOFFED ONE FRENCH TELEVISION EXECUTIVE A FEW MONTHS AGO SO MUCH HYPE FROM AMERICA NOBODY'S LAUGHING NOW WHAT ONCE SEEMED UNREALISTIC TECHNOBABBLE IS GETTING A SERIOUS HEARING AROUND EUROPE BRITISH TELECOMMUNICATIONS PLC WAS FIRST IN EUROPE TO TUNE IN AND WILL SOON ANNOUNCE DETAILS OF ITS PLANNED MULTIMEDIA TRIALS FRANCE IS SCRAMBLING TO CATCH UP AND ON FRIDAY THREE GERMAN HEAVYWEIGHTS DEUTSCHE BUNDESPOST TELEKOM BERTELSMANN AG AND KIRCH GRUPPE ANNOUNCED THAT COUNTRY'S FIRST BIG INTERACTIVEMULTIMEDIA VENTURE OUR AMERICAN FRIENDS WERE PREACHING ABOUT THE ELECTRONIC HIGHWAYS TWO YEARS AGO IT TOOK SOME TIME TO THINK ABOUT IT NOW WE ARE ACTING ON IT SAYS A SPOKESMAN FOR KIRCH A MUNICHBASED MEDIA CONGLOMERATE THAT OWNS ONE OF EUROPE'S BIGGEST FILM LIBRARIES THAT'S SWEET MUSIC TO THE US COMPANIES THAT HAVE BEEN PROSELYTIZING IN EUROPE FOR THEIR INTERACTIVE MULTIMEDIA PRODUCTS THE EUROPEANS ARE COMING OFF THE FENCE IN UNISON SAYS PAUL GODFREY A BRITON WHO AS EUROPEAN BUSINESSDEVELOPMENT DIRECTOR FOR REDWOOD SHORES CALIF SOFTWARE HOUSE ORACLE CORP HAS LOGGED MANY AIR MILES AROUND EUROPE TRYING TO CONVERT SKEPTICS HE EXPECTS SIX EUROPEAN COUNTRIES BY YEAR END TO BE HOSTING TRIALS OF VIDEOONDEMAND THE MOST TALKEDABOUT INTERACTIVE MULTIMEDIA SERVICE LETTING PEOPLE ORDER TV MOVIES OVER PHONE LINES FOR THESE TRIALS THE LONG LIST OF WANNABE SUPPLIERS FROM THE US INCLUDES ORACLE BELL ATLANTIC CORP AMERICAN TELEPHONE & TELEGRAPH CO INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP WHAT'S HAPPENING IS SIMPLY THAT THE EUROPEANS ARE COTTONING ONTO THE COMMERCIAL POSSIBILITIES OF INTERACTIVE MULTIMEDIA SERVICES MULTIMEDIA THE TERM IN THE PHONE INDUSTRY AT LEAST REFERS TO THE UNION OF TELECOMMUNICATIONS COMPUTER AND BROADCASTING TECHNOLOGIES CONNOTES A BROAD PALETTE OF SERVICES THEY INCLUDE VIDEOONDEMAND WHICH TURNS THE PHONE OR CABLETV COMPANY INTO AN ELECTRONIC VIDEORENTAL SHOP TIMESHIFT TV LETTING PEOPLE WATCH A TV SHOW WHENEVER THEY WANT RATHER THAN ONLY WHEN IT'S NORMALLY BROADCAST MULTIMEDIA HOMESHOPPING SO PEOPLE CAN BROWSE ONLINE VIDEO CATALOGS OF MERCHANDISE OR BUSINESS VIDEOCONFERENCING TURNING PERSONAL COMPUTERS INTO VIDEOPHONES TO PEER INTO OTHER OFFICES OR COMMERCIAL DATABASES FOR A PHONE COMPANY THIS IS A HUGE OPPORTUNITY SAYS PAUL REYNOLDS A BRITISH TELECOM EXECUTIVE IN CHARGE OF THAT COMPANY'S MULTIMEDIADEVELOPMENT EFFORTS OF COURSE EUROPEAN PHONE COMPANIES HAVE SPENT BILLIONS OF DOLLARS ON MULTIMEDIA RESEARCH OVER THE PAST DECADE PARTLY SUBSIDIZED BY THE EUROPEAN UNION'S SOCALLED RACE RESEARCH PROGRAM BUT MOST HAD CONCLUDED IT WAS TOO EXPENSIVE TO COMMERCIALIZE TODAY AS IT APPEARED TO REQUIRE WIRING MUCH OF A NATION WITH COSTLY OPTICAL FIBERS THOUGH THAT'S STILL TRUE FOR THE MOSTADVANCED INTERACTIVE MULTIMEDIA SERVICES WHAT THE EUROPEANS HADN'T COUNTED ON WAS A FEW KEY TECHNOLOGICAL DEVELOPMENTS MAINLY FROM THE US TO BRING THE COST DOWN FIRST WAS THE ABILITY TO SQUEEZE DOWN A STANDARD COPPER TELEPHONE WIRE THE TORRENT OF ELECTRONIC SIGNALS NEEDED TO CONVEY A DECENT VIDEO PICTURE SECOND WAS THE COMPUTER TECHNOLOGY TO MANAGE SUCH A COMPLEX NATIONWIDE SERVICE THOUGH EUROPEAN PHONE COMPANIES KNEW OF THE DEVELOPMENTS IT TOOK SOME TIME FOR THEIR INVETERATELY CAUTIOUS TOP EXECUTIVES TO STUDY AND ACT ON THEM BT TRIGGERED THE STAMPEDE SINCE ITS PRIVATIZATION IN 1984 THE FORMER BRITISH STATE PHONE MONOPOLY HAS BECOME FEARED BY ITS CONTINENTAL BRETHREN FOR ITS AGGRESSIVE FORAYS INTO THEIR HOME MARKETS ACCORDING TO OFFICIALS AT TWO COMPANIES WORKING WITH BT MORE DETAILS OF BT'S VIDEOONDEMAND PLANS WILL BE ANNOUNCED SOON A BT SPOKESMAN DECLINED TO COMMENT FRIDAY THIS APRIL BT PLANS TO TEST ITS PROTOTYPE MULTIMEDIA SYSTEM ON 60 OF ITS EMPLOYEES LIVING NEAR ITS MAIN LAB AT MARTLESHAM HEATH ENGLAND THE AIM IS PURELY TECHNICAL CHECKING HOW WELL THE PARTLY USDESIGNED SYSTEM USING ORACLE SOFTWARE WORKS WHEN PLUGGED INTO THE BRITISH PHONE NETWORK ANOTHER GOAL TO CONFIRM THAT ITS PHONE NETWORK IS UP TO THE JOB OF DELIVERING MULTIMEDIA SIGNALS IF ALL GOES WELL BT WILL PROGRESS THIS AUTUMN TO ITS FIRST TESTMARKETING ON 2500 PAYING SUBSCRIBERS EAGER TO TEST THE MULTIMEDIA WATERS SEVERAL BRITISH BROADCASTERS AND RETAILERS HAVE SIGNED UP TO PUT THEIR PROGRAMS ONTO BT'S COMPUTERS THEY INCLUDE THE BRITISH BROADCASTING CORP AND CARLTON COMMUNICATIONS PLC BT ISN'T THE ONLY UK PHONE COMPANY TO CLIMB ABOARD THE INTERACTIVE MULTIMEDIA BANDWAGON A SPOKESMAN FOR MERCURY COMMUNICATIONS LTD OWNED BY CABLE & WIRELESS PLC SAYS HIS COMPANY IS COLLABORATING IN THE PLANNED MULTIMEDIA TRIALS OF TELEWEST A BRITISH JOINT VENTURE OF TELECOMMUNICATIONS INC AND U S WEST INC ON THE CONTINENT FOR THE PAST FEW MONTHS IT LOOKED AS IF ONLY THE ITALIANS WERE INTERESTED IN MULTIMEDIA ITALY'S STATE TELECOMMUNICATIONS HOLDING COMPANY STET SPA LAST YEAR ANNOUNCED PLANS TO EXPERIMENT WITH BELL ATLANTIC ON VIDEOONDEMAND THEN JUST LAST WEEK IN PARIS APPARENTLY AT GOVERNMENT PRODDING A FRENCH MULTIMEDIA CONGLOMERATE WAS FORMED AMONG PUBLISHER HAVAS SA CABLE OPERATOR CIE GENERALE DES EAUX SOCIETE GENERALE BANK AND FRANCE TELECOM THEN ON FRIDAY THE GERMANS WEIGHED IN WITH THEIR OWN NATIONAL MULTIMEDIA CHAMPION THE GERMAN VENTURE TO BEGIN OPERATIONS IN THE MIDDLE OF THIS YEAR IS CALLED MEDIA SERVICE GMBH IT HOPES TO BE THE PIVOTAL PLAYER IN GERMAN MULTIMEDIA THE COMPANY WITH ACCESS TO ALL THE COMPUTERS SOFTWARE CABLES SATELLITE LINKS TV DECODERS AND CUSTOMERBILLING SYSTEMS NEEDED TO DELIVER MULTIMEDIA IN GERMANY OTHER MEDIA COMPANIES WOULD BE ITS CLIENTS USING IT TO TRANSMIT THEIR MOVIES HOMESHOPPING SPOTS AND OTHER PROGRAMMING THE PARTNERS ARE A FORMIDABLE TRIO POSSIBLY TO BE JOINED BY AT LEAST ONE YETUNANNOUNCED PARTNER INDEED THE VENTURE COULD RUN AFOUL OF GERMANY'S TOUGH CARTEL OFFICE DEUTSCHE TELEKOM THE STATE TELEPHONE MONOPOLY HAS A HAMMERLOCK ON THE GERMAN CABLETV MARKET WITH NEARLY 14 MILLION SUBSCRIBERS BERTELSMANN THE BIGGEST GERMAN MEDIA COMPANY HELPED START THE COUNTRY'S FIRST PAYTV SERVICE THREE YEARS AGO CALLED PREMIERE IT HAS 800000 SUBSCRIBERS AND IS EXPECTED TO START MAKING A PROFIT THIS YEAR AHEAD OF SCHEDULE KIRCH A GROUP OF COMPANIES CONTROLLED BY BAVARIAN MEDIA MAGNATE LEO KIRCH IS ALSO A SHAREHOLDER IN PREMIERE AND HOLDS GERMAN BROADCASTING RIGHTS TO 15000 PROGRAM TITLES COMPRISING 50000 HOURS OF VIEWING THE PARTNERS' INITIAL INVESTMENT WILL BE BETWEEN 150 MILLION MARKS AND 200 MILLION MARKS ACCORDING TO ONE SOURCE WHO DECLINED TO BE IDENTIFIED HANS STEKLE DEUTSCHE TELEKOM'S CABLETV DIRECTOR SAYS THE VENTURE WILL FOCUS INITIALLY ON PAYTV AND PAYPERVIEW TWO VARIANTS OF CONVENTIONAL CABLE TECHNOLOGY IN WHICH VIEWERS PAY EXTRA TO RECEIVE SPECIAL CHANNELS OR PROGRAMS BUT HE SAYS VIDEOONDEMAND TRIALS AND HOMESHOPPING SERVICES WILL FOLLOW FOR NOW HE SAYS THE VENTURE IS FOCUSING ON DELIVERING SERVICES BY CABLE AND SATELLITE IN THE FUTURE HE SAYS THE VENTURE WILL INVESTIGATE USING COPPER TELEPHONE WIRES 9403020088 940302 ENTERPRISE BY UDAYAN GUPTA EUROPEAN UNION COUNTRIES OFFER MORE INCENTIVES TO US STARTUPS AT THE PEAK OF THE 1980S HIGHTECH BOOM A SLEW OF US TECHNOLOGY COMPANIES SET UP OPERATIONS IN EUROPE ATTRACTED BY LOWPRICE LOANS GENEROUS GRANTS AND SUBSIDIES AND TAX BREAKS BUT MOST WERE UNITS OF SUCH CORPORATIONS AS HEWLETTPACKARD NATIONAL SEMICONDUCTOR AND SUN MICROSYSTEMS NOW SMALLER TECHNOLOGYORIENTED COMPANIES ARE VENTURING ABROAD ATTRACTING THEM ARE CORPORATE TAX RATES AS LOW AS 10 GRANTS TO TRAIN WORKERS AND BUY CAPITAL EQUIPMENT AND IN SOME CASES EVEN RENTFREE FACTORIES IN SOME COUNTRIES SUCH AS THE NETHERLANDS VENTURE CAPITAL FUNDS ARE CHIPPING IN WITH EQUITY CAPITAL MINNEAPOLIS STARTUP ATS MEDICAL SAYS IT EXPECTS TO RECEIVE NEARLY 500000 IN GOVERNMENT ASSISTANCE TO BUILD ITS FLEDGING HEARTVALVE MANUFACTURING OPERATIONS IN GLASGOW SCOTLAND ATS RECEIVED A BIG RELOCATION GRANT FROM LOCATE IN SCOTLAND THE BRITISH GOVERNMENT'S INVESTMENT AGENCY FOR THE COUNTRY IT ALSO RECEIVED GRANTS TO PURCHASE CAPITAL EQUIPMENT AND TRAIN THE NINE WORKERS IT EMPLOYS AT ITS GLASGOW OPERATIONS THE US COMPANIES CREATE JOBS AND BRING NEW TECHNOLOGY TO EUROPEAN NATIONS THE AMERICANS IN TURN GAIN AN EASY ENTRY INTO A MARKET THAT STILL HAS TRADE BARRIERS FOR NONEUROPEAN FIRMS MANY COMPANIES REALIZE THEY CAN'T EFFICIENTLY SUPPLY THE EUROPEAN MARKET BECAUSE OF TARIFFS AND QUOTAS SAYS FINN GALLEN VICE PRESIDENT OF INDUSTRIAL DEVELOPMENT AGENCYIRELAND IN NEW YORK US BUSINESSES ALSO SEE THE 12 EU COUNTRIES AS IDEAL BASES FOR MARKETING TO THE REST OF EUROPE SAYS THOMAS SCHANSMAN AREA DIRECTOR OF THE NETHERLANDS FOREIGN INVESTMENT AGENCY IN NEW YORK WITH EXPANSION CAPITAL SCARCE IN THE US ESPECIALLY FOR MANUFACTURING AND BUILDING FACILITIES MANY SMALL COMPANIES INCREASINGLY ARE FINDING IT CHEAPER TO LOCATE IN A EUROPEAN COUNTRY AND DO BUSINESS THERE THAN EXPORT FROM THE US HE SAYS AND MANY EUROPEAN GOVERNMENTS AND REGIONS LIKE FRANCE'S ALSACE ARE BENDING OVER BACKWARD TO HELP THE DUTCH FOR EXAMPLE WILL ORGANIZE FACTFINDING TRIPS FOR SMALL COMPANIES ASSIST IN SELECTING A MANUFACTURING SITE AND FIND SOURCES OF DEBT AND EQUITY CAPITAL IF COMPANIES AGREE TO LOCATE IN CERTAIN AREAS THE NETHERLANDS WILL EVEN FINANCE UP TO 15 OF THE INVESTMENT IRELAND PROVIDES GRANTS OF UP TO 45 OF A PROJECT'S FIXED COST AND WILL THROW IN A RENTFREE FACTORY FOR UP TO SEVEN YEARS AT CERTAIN LOCATIONS AN ENTREPRENEURIAL PROGRAM IN NEW YORK IS GOING NATIONAL PREPARING FOR PROFIT WAS ESTABLISHED THREE YEARS AGO TO HELP SMALL SERVICE COMPANIES ESPECIALLY THOSE RUN BY WOMEN AND MINORITIES WIN CONTRACTS FROM PUBLIC AGENCIES IT HAS WORKED SO WELL THAT ITS SPONSORS NEW YORK CITY'S METROPOLITAN TRANSPORTATION AUTHORITY THE ACCOUNTING FIRM COOPERS & LYBRAND AND FIORELLO H LAGUARDIA COMMUNITY COLLEGE PLAN TO OFFER SIMILAR PROGRAMS IN OTHER CITIES THE PARTNERSHIP IS CONSIDERING CHICAGO LOS ANGELES DALLAS AND PITTSBURGH SAYS JULIAN ALSSID DIRECTOR OF ECONOMIC DEVELOPMENT AT LA GUARDIA COMMUNITY COLLEGE WHAT WE'VE LEARNED IN THE PROGRAM HERE CAN BE USEFUL TO OTHERS IN OTHER CITIES HE SAYS THE NEW YORK PROGRAM CONSISTS OF FOUR SIXHOUR SATURDAY SESSIONS IN WHICH CITY BUREAUCRATS ACCOUNTANTS LAWYERS AND OTHERS WALK ENTREPRENEURS THROUGH THE RIGORS OF CONTRACT BIDDING MORE THAN 500 ENTREPRENEURS HAVE PARTICIPATED OFFICIALS SAY COURSE GRADUATES REPORT THAT THE NUMBER OF BUSINESS CONTRACTS THEY HAVE RECEIVED HAS RISEN MORE THAN 150 IT HELPED ME ESTABLISH A VERY USEFUL NETWORK OF PROFESSIONAL CONTACTS SAYS TERESA JOHNSON PRESIDENT OF COMPLUS COMPUTER SOLUTIONS A NEW YORK PROVIDER OF COMPUTER TRAINING AND SERVICES BEFORE TAKING THE COURSE SHE SAYS SHE HADN'T APPLIED FOR ANY BIG CITY PROJECTS BECAUSE SHE FELT THERE WAS NO WAY I COULD COMPETE WITH THE BIG GUYS HER TRAINING HELPED HER WIN GOVERNMENT ORDERS AND HER COMPANY'S 1993 REVENUES NEARLY DOUBLED FROM A YEAR EARLIER TO 300000 SHE EXPECTS THIS YEAR'S SALES TO TOP 1 MILLION BECAUSE OF A 500000 CONTRACT TO TRAIN MTA EXECUTIVES ON IBM COMPUTERS DESPITE THEIR REPUTATIONS AS CAPITALS OF SMALL BUSINESS CHARLOTTE ATLANTA AND RALEIGHDURHAM DON'T MAKE THE GRADE FOR ENTREPRENEURIAL WOMEN THESE CITIES LACK NETWORKS OF BUSINESSWOMEN AND A CONCENTRATION OF WOMENOWNED BUSINESSES SAYS WORKING WOMAN MAGAZINE GREATER NUMBERS OF WOMEN IN A CITY MEAN MORE VISIBILITY WHICH TRANS LATES INTO THE POWER TO DRAW RESOURCES SAYS THE MAGAZINE IN ITS ANNUAL LISTING OF THE 10 BEST CITIES FOR WOMEN SMALLBUSINESS OWNERS THE TOP 10 ARE BOSTON NEW YORK COLUMBUS OHIO SAN FRANCISCO PHILADELPHIA CHICAGO INDIANAPOLIS LOS ANGELES BALTIMORE AND SAN DIEGO BOSTON WAS CALLED A HIGHTECH BRAIN TRUST WHOSE WOMENOWNED BUSINESSES ARE THE FASTESTGROWING AND MOST PROSPEROUS OF THE 10 CITIES ON THE LIST MANY ENTREPRENEURS ARE CREATING SMALL REGIONAL CUSTOM CABLESHOPPING SHOWS MAX MUSIC OF DENVER PLANS A FOURHOUR MUSIC VIDEO SHOW FEATURING RELATED PRODUCTS HOMETOWN SHOPPING SHOW OF HERMOSA BEACH CALIF SAYS ITS 16MONTHOLD SHOW WHICH FEATURES PRODUCTS AND SERVICES OF LOCAL ENTREPRENEURS CAN REACH ABOUT 750000 VIEWERS JACKSON MITCHELL OF SANTA BARBARA CALIF A PRODUCER OF GOAT MILK AND GOATMILK PRODUCTS WITH 6 MILLION IN ANNUAL REVENUE SAYS SALES ROSE MORE THAN 10 IN THE PAST MONTH AS CONSUMERS WORRIED ABOUT THE BST HORMONES THAT WERE RECENTLY APPROVED FOR COWS SWITCHED TO THE BEARDED BEAST'S BEVERAGE 9403020087 940302 TECHNOLOGY & MEDICINE STUDY FINDS DRUG FIRMS' SALES METHODS MAY UNDERCUT MANAGEDCARE CONTROLS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SUGGESTS A CONTROVERSIAL PHARMACEUTICALINDUSTRY PRACTICE OF GIVING PHYSICIANS MONEY IS EFFECTIVE IN INFLUENCING THEIR PRESCRIPTIONDRUG RECOMMENDATIONS EVEN IN THE FACE OF MANAGED CARE CONTROLS SUCH AS DRUG FORMULARIES THE STUDY FOUND THAT PHYSICIANS WHO REQUESTED HOSPITAL APPROVAL OF SPECIFIC DRUGS WERE MUCH MORE LIKELY THAN OTHER PHYSICIANS TO HAVE ACCEPTED FUNDS FROM DRUG COMPANIES TO PAY FOR TRAVEL SPEAKING OR RESEARCH EXPENSES IN THE STUDY PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION MARYMARGARET CHREN AND C SETH LANDEFELD EXAMINED THE INTERACTIONS WITH DRUG COMPANIES OF 40 CASE PHYSICIANS WHO HAD RECOMMENDED SPECIFIC DRUGS BE ADDED TO A HOSPITAL'S FORMULARY THE INSTITUTION'S LIST OF APPROVED DRUGS THEY WERE COMPARED WITH 80 RANDONLY SELECTED CONTROL PHYSICIANS WHO HADN'T MADE SUCH REQUESTS THE RESEARCHERS FOUND THE TWO GROUPS OF PHYSICIANS DIDN'T DIFFER IN THEIR FREQUENCY OF EXPOSURE TO DRUG COMPANIES' PROMOTIONAL ACTIVITIES SUCH AS VISITS FROM DRUGCOMPANY REPRESENTATIVES BUT THE CASE PHYSICIANS WERE MUCH MORE LIKELY TO HAVE ACCEPTED MONEY FROM DRUG COMPANIES TO SPEAK AT EDUCATIONAL SYMPOSIA AND WERE SOMEWHAT MORE LIKELY THAN THEIR CONTROL COUNTERPARTS TO HAVE ACCEPTED MONEY FROM THE COMPANIES TO PAY FOR THEIR PERSONAL TRAVEL OR LODGING TO ATTEND SYMPOSIA THEY ALSO REPORTED SHARING MEALS WORTH MORE THAN 10 PAID FOR BY DRUG COMPANIES MORE OFTEN THAN DID CONTROL PHYSICIANS THE CASE PHYSICIANS WERE ALSO MUCH MORE LIKELY TO HAVE PERFORMED RESEARCH SPONSORED BY DRUG COMPANIES AS FEDERAL FUNDING FOR MEDICAL RESEARCH HAS BECOME MORE DIFFICULT TO OBTAIN PHYSICIANS HAVE BECOME MORE DEPENDENT ON FUNDING BY THE PHARMACEUTICAL INDUSTRY DR LANDEFELD SAID THE STUDY'S RESULTS SUGGEST THAT TRADITIONAL DRUGCOMPANY MARKETING DIRECTED AT PHYSICIANS MAY STILL BE EFFECTIVE IN THE MANAGEDCARE MARKET WHERE FORMULARIES ARE WIDELY USED TO CONTAIN COSTS MANY PHARMACEUTICAL COMPANIES HAVE BEEN SHRINKING THEIR SALES FORCE IN THE BELIEF THAT PROMOTIONAL ACTIVITIES DIRECTED AT PHYSICIANS AREN'T EFFECTIVE WHEN INSTITUTIONS INCREASINGLY REGULATE PHYSICIANPRESCRIBING PRACTICES THROUGH FORMULARIES IN THE STUDY HOWEVER ALL BUT SIX OF 52 REQUESTED DRUGS WERE ADDED TO THE FORMULARY INCLUDING 20 DRUGS CLASSIFIED BY A HOSPITAL PHARMACIST AS HAVING LITTLE OR NO ADVANTAGE OVER DRUGS ALREADY ON THE FORMULARY ANOTHER 13 ADDED TO THE FORMULARY WERE CLASSIFIED AS HAVING MODEST ADVANTAGE DR LANDEFELD SAID WE WOULD LIKE TO BELIEVE THAT THE MEDICAL PROFESSION WILL ACT ON THESE SORTS OF DATA AND ETHICAL ISSUES AND TAKE THE HIGH ROAD BUT HE SUGGESTED THIRDPARTY PAYERS MAY WANT TO DEVELOP STRICT GUIDELINES AIMED AT MINIMIZING OR ELIMINATING PHYSICIAN RELATIONSHIPS WITH PHARMACEUTICAL COMPANIES KAISER PERMANENTE MEDICAL CARE PROGRAM PROVIDES A MODEL FOR SUCH POLICIES HE SAID DALE KRAMER DIRECTOR OF MATERIEL SERVICES FOR KAISER'S NORTHERN CALIFORNIA REGION SAID KAISER TRIES TO SEPARATE FORMULARY AND PRESCRIBING DECISIONS FROM INDUSTRY INFLUENCE IT LIMITS ACCESS OF DRUGCOMPANY DETAIL PEOPLE TO PHYSICIANS AND RUNS A PROGRAM TO PROVIDE INDEPENDENT ASSESSMENTS OF DRUGS DRS LANDEFELD AND CHREN ARE ON THE STAFF OF THE 874BED UNIVERSITY HOSPITALS OF CLEVELAND WHERE THE STUDY WAS CONDUCTED AND ON THE FACULTY OF CASE WESTERN RESERVE UNIVERSITY SCHOOL OF MEDICINE IN CLEVELAND 9403020086 940302 TECHNOLOGY CYANAMID PLEADS GUILTY TO FEDERAL MISDEMEANOR WAYNE NJ AMERICAN CYANAMID CO PLEADED GUILTY TO A FEDERAL MISDEMEANOR COUNT OF FAILING TO MAINTAIN ACCURATE RECORDS RELATING TO TESTS IN VETERINARYDRUG STUDIES THE CASE WHICH HAS BEEN UNDER INVESTIGATION FOR SEVERAL YEARS HAD RAISED EYEBROWS BECAUSE IT APPEARED TO CALL INTO QUESTION THE FOOD AND DRUG ADMINISTRATION'S ABILITY TO DETECT FRAUDULENT DATA IN NEW ANIMAL DRUG APPLICATIONS CYANAMID HAD BEEN COOPERATING WITH THE FEDERAL INVESTIGATION WHICH IT NOTED FOCUSED ON ONE CYANAMID RESEARCH EMPLOYEE WHO MONITORED STUDIES DONE BY CONTRACT RESEARCH LABS THE COMPANY PAID A FINE OF 200000 IN THE CASE AND REIMBURSED THE GOVERNMENT AN ADDITIONAL 200000 TO COVER COSTS ASSOCIATED WITH THE LENGTHY INVESTIGATION CONDUCTED BY THE DEPARTMENT OF JUSTICE AND THE FOOD AND DRUG ADMINISTRATION THE CASE INVOLVED FIELDTRIAL DATA THE COMPANY FILED WITH THE FDA TO PROVE THE EFFICACY OF AN ANIMAL DRUG KNOWN AS CYGRO IN COMBINATION WITH OTHER PRODUCTS THE GOVERNMENT BECAME CONCERNED AFTER THE HEAD OF ONE INDEPENDENT LABORATORY CONTACTED THE FDA AND SAID THAT HE'D BEEN PRESSURED BY A CYANAMID OFFICIAL TO ALTER DATA 9403020085 940302 SENATE BANKING PANEL HEARS REGULATOR PLAN BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEMBERS OF THE SENATE BANKING COMMITTEE EMBRACED THE GOAL OF A LESS CUMBERSOME BANKSUPERVISORY SYSTEM BUT OPPOSED ASPECTS OF THE TREASURY'S PLAN TO CONSOLIDATE FOUR REGULATORY AGENCIES INTO ONE SEVERAL SENATORS SUGGESTED THAT THE CLINTON ADMINISTRATION WILL HAVE TO ACCEPT COMPROMISES IF IT WANTS TO GET A PLAN THROUGH THE ADMINISTRATION IS PROPOSING TO PLACE THE REGULATORY AUTHORITY OF THE FEDERAL DEPOSIT INSURANCE CORP THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION INTO A NEW FEDERAL BANKING COMMISSION NO OTHER COUNTRY HAS A REGULATORY SYSTEM ANYWHERE NEAR AS CONFUSED AS OURS TREASURY SECRETARY LLOYD BENTSEN TOLD THE PANEL HE SAID THAT BANKING ORGANIZATIONS CONTROLLING NEARLY 50 OF THE NATION'S BANK ASSETS ARE GOVERNED BY THREE OR FOUR REGULATORS AND HE CALLED THE COST AND COMPLEXITY OF OVERLAPPING REGULATION A SERIOUS DISADVANTAGE IN TODAY'S COMPETITIVE WORLD BUT THE FED HAS CAMPAIGNED HARD AGAINST THE PLAN CLAIMING THAT THE LOSS OF REGULATORY POWER WOULD IMPEDE ITS ABILITY TO CONDUCT MONETARY POLICY AND TO CONTROL FINANCIAL CRISES MR BENTSEN TESTIFIED THAT THE ADMINISTRATION HAS TRIED TO ACCOMMODATE THE FED'S CONCERNS BUT THAT THE CENTRAL BANK HAS RESPONDED WITH A PLAN THAT WOULD SIGNIFICANTLY EXPAND THE NUMBER OF BANKS UNDER ITS REGULATORY CONTROL REPUBLICAN EFFORTS TO USE BANKING COMMITTEE HEARINGS AS A DEVICE TO EXPLORE PRESIDENT AND HILLARY RODHAM CLINTON'S DEALINGS WITH MADISON GUARANTY SAVINGS & LOAN A FAILED ARKANSAS THRIFT ARE ALSO A POTENTIAL COMPLICATION GOP SEN CHRISTOPHER BOND OF MISSOURI YESTERDAY ASKED WHETHER ANYBODY IN THE CLINTON ADMINISTRATION HAD DISCUSSED WORTHEN BANKING CORP OF LITTLE ROCK WHILE CRAFTING THE PROPOSAL THE FED IS INVESTIGATING WHETHER THE BANK'S CLOSE RELATIONSHIP WITH THE STEPHENS FAMILY THE WEALTHY ARKANSAS INVESTMENT BANKERS VIOLATES BANKING LAW IF THE ADMINISTRATION PLAN PASSES WORTHEN WHICH AGREED TO LEND MR CLINTON 35 MILLION DURING HIS PRESIDENTIAL CAMPAIGN WOULD NO LONGER BE SUBJECT TO FED SUPERVISION FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE SAID OF WORTHEN IT WAS NEVER RAISED IN ANY OF THE INTERAGENCY MEETINGS IT WAS ABSOLUTELY NOT A FACTOR WHATSOEVER IN ANY WAY IN OUR APPROACH HERE THIS IS 100 DRIVEN BY THE DESIRE FOR GOOD GOVERNMENT FOR EFFICIENCY AND FOR US TO HAVE A HEALTHIER BANKING SYSTEM GOING FORWARD FOR THIS COUNTRY SEN BOND NOTED THAT IN 1992 THE WALL STREET JOURNAL QUOTED CURT BRADBURY WORTHEN'S CHAIRMAN AS SAYING I WOULD LIKE TO BE IN A POSITION TO THINK I COULD CALL THE PRESIDENT OF THE UNITED STATES AND GIVE HIM MY VIEWS ON THE FEDERAL RESERVE FOR EXAMPLE MR BRADBURY EXPLAINED IN THAT ARTICLE THAT HE WAS REFERRING TO ECONOMIC NOT REGULATORY MATTERS MR BOND ASKED MR BENTSEN TO PROVIDE A LIST OF THE PEOPLE IN THE ADMINISTRATION WHO DISCUSSED THE REGULATORY CONSOLIDATION PLAN AFTER THE HEARING SEN BOND SAID THAT DEPUTY TREASURY SECRETARY ROGER ALTMAN LAST MONTH BRIEFED SEVERAL WHITE HOUSE OFFICIALS ON THE TIMETABLE FOR POSSIBLE GOVERNMENT LAWSUITS AGAINST PEOPLE INVOLVED IN THE COLLAPSE OF MADISON GUARANTY AND HE WANTED TO SEE WHETHER ANY OF THESE OFFICIALS ALSO PARTICIPATED IN DISCUSSIONS OF THE REGULATORY RESTRUCTURING PLAN THE FORMER OWNER OF MADISON WAS A BUSINESS AND POLITICAL ASSOCIATE OF MR CLINTON AN INDEPENDENT COUNSEL IS STUDYING ALLEGATIONS THAT FUNDS FROM THE THRIFT MAY HAVE BEEN USED IMPROPERLY TO FUND MR CLINTON'S CAMPAIGNS OR AN INVESTMENT IN WHITEWATER DEVELOPMENT CO AN ARKANSAS REALESTATE VENTURE PRESIDENT CLINTON HAS DENIED ANY WRONGDOING SEN BOND ALSO SAID THAT BANKERS FAVOR EFFORTS TO REDUCE REGULATION BUT AREN'T SUPPORTING THE CONSOLIDATION PLAN MR BENTSEN AGREED SAYING I THINK THERE'S BEEN A MAJOR MAJOR MISUNDERSTANDING AND A MISSTATEMENT OF WHAT WE'RE TRYING TO DO HERE HE INSISTED THAT THE PLAN WOULD PROTECT THE CURRENT DUAL BANKING SYSTEM WHICH GIVES BANKS A CHOICE OF BEING REGULATED PRIMARILY BY FEDERAL OR STATE REGULATORS IN FACT HE SAID HEALTHY STATECHARTERED BANKS WITH LESS THAN 250 MILLION IN ASSETS WOULD BE EXAMINED SOLELY BY STATE AUTHORITIES AND THAT LARGER STATECHARTERED BANKS WOULD BE EXAMINED BY STATE AUTHORITIES IN ALTERNATE YEARS AS THEY ARE NOW AFTER THE HEARING MR NEWMAN SAID THE FEES THAT SOME LARGE STATE BANKS PAY WOULD RISE UNDER THE TREASURY PLAN HE ALSO SAID THAT THE FEES MOST BANKS PAY FOR EXAMINATIONS WILL STAY THE SAME OR FALL 9403020084 940302 WHO'S NEWS FIELDS HEAD OF MCC RESEARCH CONSORTIUM LEAVES POST IN JUNE AUSTIN TEXAS MICROELECTRONICS & COMPUTER TECHNOLOGY CORP A PRIVATE CONSORTIUM TO POOL US TECHNOLOGY RESEARCH SAID ITS CHAIRMAN AND CHIEF EXECUTIVE CRAIG I FIELDS WILL RESIGN EFFECTIVE JUNE 1 MR FIELDS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT BUT SAID IN A STATEMENT THAT HE HAD GROWN TIRED OF COMMUTING BETWEEN MCC HEADQUARTERS AND WASHINGTON WHERE HIS WIFE IS A COMPUTERSYSTEMS SPECIALIST IN THE NEXT PHASE OF MY LIFE MY WIFE AND I ARE DETERMINED NOT TO BE SEPARATED BY OUR CAREERS HE SAID A SEARCH FOR A NEW CEO IS UNDER WAY MR FIELDS JOINED MCC IN 1990 AFTER HEADING THE DEFENSE DEPARTMENT'S RESEARCH ARM FOR MCC FORMED IN THE 1980S TO COUNTER JAPANESE ADVANCES IN LEADINGEDGE RESEARCH HIS DEPARTURE COMES AT AN AWKWARD TIME FACING CRITICISM THAT MUCH OF MCC'S RESEARCH WAS IRRELEVANT AND EXPENSIVE MR FIELDS IN RECENT MONTHS LAUNCHED INITIATIVES TO SHARPEN ITS FOCUS INCLUDING A VENTURECAPITAL SUBSIDIARY TO SPIN OFF MCC TECHNOLOGIES AND A NATIONWIDE COMPUTER NETWORK FOR MEMBER COMPANIES TO SWAP INFORMATION WITH SUPPLIERS AND CUSTOMERS BILL STOTESBERY A SPOKESMAN FOR THE CONSORTIUM SAID THOSE EFFORTS WON'T BE AFFECTED BY MR FIELDS'S DEPARTURE MCC IS SOLID HE SAID MR FIELDS 47 YEARS OLD HAD BEEN DIRECTOR OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY WHERE HE WAS AN OUTSPOKEN PROPONENT OF MORE GOVERNMENT INVOLVEMENT IN POLICIES TO BOOST US COMPETITIVENESS THOSE VIEWS HOWEVER CAUSED FRICTION BETWEEN MR FIELDS AND HIS BUSH ADMINISTRATION BOSSES WHO REASSIGNED HIM TO ANOTHER PENTAGON POST 9403020083 940302 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN MORE STATES CONSIDER TAX CUTS AS ECONOMIC GROWTH LIFTS REVENUES AT LEAST 20 STATES ARE SERIOUSLY CONSIDERING TAX CUTS SAYS STEVEN D GOLD OF THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY THAT IS THE LARGEST NUMBER SINCE 1985 THE STRONGER ECONOMY CLEARLY IS EASING STATE BUDGET PRESSURES GOLD SAYS A FEW STATES NOTABLY NEW JERSEY MAY CUT INDIVIDUAL INCOME TAXES SHARPLY BUT MOST STATES' REDUCTIONS WON'T BE LARGE ENOUGH TO MAKE A SIGNIFICANT DIFFERENCE IN PEOPLE'S TAKEHOME PAY HE PREDICTS STATE TAX REVENUES ROSE 61 IN 1993'S SECOND HALF FROM A YEAR EARLIER A REPORT BY THE CENTER SAYS THOSE GAINS CAME PRIMARILY FROM STRONGER ECONOMIC GROWTH ROCKY MOUNTAIN STATES ESPECIALLY WYOMING POSTED THE BIGGEST INCREASES MISSISSIPPI HELPED BY A CASINORELATED BOOM ALSO ENJOYED STRONG GROWTH GOLD SAYS BUT A MERRILL LYNCH REPORT WARNS THAT CALIFORNIA STRUGGLING TO EMERGE FROM A DEEP RECESSION STILL FACES SEVERE PROBLEMS CALIFORNIA HAS A TAX CLIMATE THAT IS HOSTILE TO BOTH BUSINESSES AND INDIVIDUALS SAYS DONALD STRASZHEIM MERRILL LYNCH'S CHIEF ECONOMIST CONNECTICUT TRIES TO FIX A BIZARRE TAXLAW QUIRK IT MAY SOUND LIKE A JOKE INDEED SOME PEOPLE REFER TO IT AS THE MONTY PYTHON'S FLYING CIRCUS TAX LAW BUT THE PEOPLE AFFECTED AREN'T LAUGHING THEY ARE VICTIMS OF A CONNECTICUT TAXLAW PROVISION THAT PENALIZES SOME PEOPLE WHOSE ONLY VICE IS EARNING AN EXTRA 1 FOR EXAMPLE A SINGLE PERSON WITH TAXABLE INCOME OF 48001 OWES THE STATE 217 MORE IN TAXES THAN SOMEONE WITH 48000 SAYS JOHN R SHAUGHNESSY JR A LAWYER AT ROBINSON & COLE IN HARTFORD UPPERINCOME TAXPAYERS MAY FACE AN EVEN BIGGER HIT A MARRIED COUPLE FILING JOINTLY WITH TAXABLE INCOME OF 96001 OWES 433 MORE IN TAXES THAN A COUPLE WITH 96000 SHAUGHNESSY SAYS GOV WEICKER HAS PROPOSED CHANGES IN EXEMPTIONS AND CREDITS TO FIX THESE INCOMETAX CLIFFS WHICH HAVE EXISTED SINCE 1991 BUT THESE CHANGES WOULDN'T BE EFFECTIVE UNTIL 1995 A WEICKER AIDE SAYS CHANCES OF PASSAGE ARE VERY GOOD BUT THE OUTLOOK IS CLOUDY BECAUSE THIS IS A POLITICAL YEAR ANXIETY GROWS OVER LACK OF IRS GUIDANCE ON UNCLEAR TAXLAW PROVISIONS TREASURY AND IRS OFFICIALS STRUGGLE TO ANSWER MANY QUESTIONS ABOUT FUZZY PROVISIONS OF THE 1993 TAX LAW AND OTHER ISSUES UNDER THE NEW LAW FOR EXAMPLE COMPANIES NO LONGER MAY DEDUCT MANY LOBBYING EXPENSES BUT THE LAW DOESN'T DEFINE LOBBYING BE PATIENT TREASURY OFFICIALS SAY YESTERDAY THEY RELEASED A LIST OF ABOUT 135 SEPARATE ISSUES INCLUDING LOBBYING THEY EXPECT TO HAVE ANSWERS ON BY YEAR END THE NEW LAW ALSO ELIMINATED BUSINESS DEDUCTIONS FOR CLUB DUES EFFECTIVE JAN 1 OF THIS YEAR SEVERAL TAX EXPERTS THINK THIS PROVISION MAY EXCLUDE SOME CLUBS SUCH AS ROTARY AND KIWANIS BUT THEY AREN'T SURE IF THE IRS WILL AGREE FRUSTRATION IS BUILDING UP OVER THE LACK OF INTERPRETATIVE REGULATIONS SAYS DONALD ALEXANDER A LAWYER AT AKIN GUMP IN WASHINGTON AND A FORMER IRS COMMISSIONER THEY ARE BADLY NEEDED DON'T BLAME THE TREASURY SOME LAWYERS SAY THE REAL PROBLEM SAYS MARY B HEVENER OF MCDERMOTT WILL & EMERY IN WASHINGTON IS TAX LAWS THAT ARE CONFUSINGLY DRAFTED FIXING A PROBLEM EVERYONE WOULD LOVE TO HAVE THE IRS WIDENS A BOX ON ITS 1994 W2 FORM AFTER A COMPLAINT THAT THERE WASN'T ENOUGH ROOM ON THE 1993 FORM TO TYPE IN WAGES OF NINE DIGITS LAWYERS LOSE ANOTHER ROUND IN THEIR BID TO HIDE THE IDENTITY OF SOME CLIENTS THE IRS SAYS THE LAW AND SEVERAL COURT CASES REQUIRE LAWYERS TO DIVULGE THE NAME OF ANY CLIENT WHO PAYS THEM MORE THAN 10000 IN CASH IN ONE TRANSACTION OR IN TWO OR MORE RELATED TRANSACTIONS UNFAIR SOME LAWYERS RETORT THEY SAY DISCLOSURE WOULD VIOLATE ATTORNEYCLIENT PRIVILEGE THEY WANT THE IRS TO REVERSE A RECENT DECISION TO IMPOSE BIG PENALTIES ON LAWYERS WHO DON'T OBEY BUT ANOTHER COURT RULES AGAINST THE LAWYERS THE US APPEALS COURT FOR THE SIXTH CIRCUIT REJECTS A BID BY ROBERT W RITCHIE OF KNOXVILLE TENN TO SHIELD THE IDENTITY OF THREE CLIENTS EVEN SO SOME LAWYERS HOPE THE IRS WILL ALLOW NONDISCLOSURE UNDER CERTAIN CIRCUMSTANCES I'M HOPEFUL THAT THE IRS AND LAWYERS CAN REACH A COMPROMISE SAYS GERALD B LEFCOURT OF LEFCOURT & DRATEL IN NEW YORK REPS KOPETSKI D ORE AND MCCOLLUM R FLA WRITE THE IRS TO EXPRESS THEIR CONCERN ABOUT IMPOSING PENALTIES BRIEFS THE IRS RECEIVED 292 MILLION INDIVIDUAL TAX RETURNS AS OF FEB 18 55 LESS THAN IN THE YEAREARLIER PERIOD FOR 1990 OF THE 834957 INDIVIDUAL INCOMETAX RETURNS WITH ADJUSTED GROSS INCOME OF 200000 OR MORE 1219 HAD NO US INCOMETAX LIABILITY THE IRS SAYS THAT IS UP FROM 1081 RETURNS IN 1989 HUMOR COLUMNIST DAVE BARRY OFFERS TWO REWARDS TO READERS WHO MAIL HIM THE BEST TAX TIPS A HANDSOME MENTION OF THEIR NAMES IN HIS COLUMN AND A CHANCE TO BE AUDITED FOR LIFE 9403020082 940302 WHO'S NEWS HEINZ CHIEF HAS JOB ON THE SIDE GLOBAL PUBLISHER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL WHO'S RUNNING HJ HEINZ CO A VERY BUSY GLOBAL PUBLISHING TYCOON THAT'S WHO ANTHONY JF O'REILLY HEINZ'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE HAS EXPANDED HIS PRIVATE NEWSPAPER EMPIRE IN RECENT WEEKS WITH MAJOR ACQUISITIONS IN ENGLAND AND SOUTH AFRICA MEANWHILE BACK IN PITTSBURGH HEINZ IS STRUGGLING THE 7 BILLION FOOD COMPANY IS STUCK WITH A COLLECTION OF MATURE SLOWGROWTH BRANDS INCLUDING KETCHUP OREIDA FROZEN POTATOES 9 LIVES PET FOOD AND WEIGHT WATCHERS FROZEN FOODS BAD WEATHER AND THE LOS ANGELES EARTHQUAKE HAVE HURT ITS WEIGHT WATCHERS FOOD AND DIETCLASS BUSINESSES FRUSTRATING AN EXPENSIVE MARKETING CAMPAIGN HEINZ IS ALSO BEING PUMMELED BY ADVERSE FOREIGN CURRENCY TRANSLATIONS LAST YEAR 43 OF ITS SALES CAME FROM OUTSIDE THE US AND IT WILL HAVE FEWER OVERSEAS TAX CREDITS THIS YEAR MANY ANALYSTS ARE LOWERING EARNINGS ESTIMATES FOR THE FISCAL THIRD QUARTER RESULTS WILL BE REPORTED NEXT TUESDAY AND EXPECT OPERATING PROFIT FOR THE FISCAL YEAR THAT ENDS IN APRIL TO BE AT LEAST 8 LOWER THAN THE YEAR BEFORE THEY SHOULD TAKE MORE COSTS OUT OF THE SYSTEM AND DECIDE WHETHER THEY SHOULD STAY IN SOME OF THE BUSINESSES THEY'RE IN SAYS STEVE GALBRAITH AN ANALYST WITH SANFORD BERNSTEIN & CO PERHAPS O'REILLY'S EFFORTS SHOULD BE FOCUSED EXCLUSIVELY ON THE COMPANY BUT THE 57YEAROLD MR O'REILLY IS THE LARGEST NEWSPAPER PUBLISHER IN IRELAND HIS HOMELAND WHERE HE FIRST MADE HIS NAME AS A RUGBY STAR AND A LOT HAS BEEN HAPPENING RECENTLY AT THE DUBLIN NEWSPAPER COMPANY INDEPENDENT NEWSPAPERS PLC IN WHICH HE HAS A 27 STAKE LAST MONTH THE COMPANY ACQUIRED 2499 OF ENGLAND'S NEWSPAPER PUBLISHING PLC AND AGREED TO BUY 31 OF ARGUS NEWSPAPERS THE LARGEST NEWSPAPER GROUP IN SOUTH AFRICA IT ALSO GOBBLED UP A COMPANY THAT PUBLISHES 14 WEEKLY NEWSPAPERS IN NORTH LONDON ADDING TO ITS COLLECTION OF NINE URBAN WEEKLIES LIAM HEALY INDEPENDENT NEWSPAPERS' CHIEF EXECUTIVE SAYS THE COMPANY WANTS TO EXPAND IN AUSTRALIA WHERE IT OWNS 25 OF AUSTRALIAN PROVINCIAL NEWSPAPERS THE COUNTRY'S FOURTHLARGEST NEWSPAPER PUBLISHER THE O'REILLY FAMILY TRUST OWNS 30 OF APN AND MR O'REILLY'S SON CAMERON IS A TOP EXECUTIVE OF THE COMPANY MR O'REILLY WHO JOINED HEINZ'S UK UNIT IN 1969 AND WAS NAMED CHIEF EXECUTIVE OF THE COMPANY IN 1979 ACKNOWLEDGES THAT INDEPENDENT'S RECENT VENTURES REPRESENT A BIG PIECE OF CHANGE FOR THE GOOD DOCTOR MR O'REILLY HAS A DOCTORATE IN AGRICULTURAL MARKETING FROM BRADFORD UNIVERSITY IN ENGLAND BUT HE SAYS THAT EVEN THOUGH HE'S INVOLVED IN INDEPENDENT AS ITS CHAIRMAN AND MAJOR SHAREHOLDER HE LEAVES OPERATING DECISIONS TO HIS LIEUTENANTS WHILE THESE EXECUTIVES WERE NEGOTIATING WITH NEWSPAPER PUBLISHING IN LONDON MR O'REILLY SAYS HE WAS FLYING ON HEINZ BUSINESS BETWEEN NASSAU IN THE BAHAMAS TOKYO SYDNEY AUSTRALIA AND PITTSBURGH I HAVE NOT BEEN IN LONDON SINCE BEFORE CHRISTMAS HE SAYS STILL THE NEWSPAPER TRANSACTIONS WERE COMPLEX PARTICULARLY IN SOUTH AFRICA WHERE MR O'REILLY HAS NURTURED RELATIONSHIPS WITH TOP POLITICAL FIGURES OVER THE CHRISTMAS HOLIDAYS HE PLAYED HOST TO AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA AT HIS CARIBBEAN VACATION HOME AND WHEN THE SOUTH AFRICA DEAL WAS ANNOUNCED HE VISITED THE STAR IN JOHANNESBURG TO ASSURE THE STAFF HE WOULDN'T INFLUENCE EDITORIAL POLICY WHILE IN SOUTH AFRICA HE ALSO VISITED FOOD COMPANIES HEINZ MIGHT ACQUIRE SAYS A SPOKESMAN JOHN GLERUM FORMER CHIEF EXECUTIVE OF OREIDA ARGUES THAT THE CURRENT FLURRY OF NEWSPAPER ACQUISITIONS MUST DILUTE HIS FOCUS AND EFFORTS ON HEINZ SAYS MR GLERUM NOW PRESIDENT OF EQUITY INVESTMENTS INC OF BOISE IDAHO IT TAKES TIME AND YOU CAN ONLY DO SO MANY THINGS MR O'REILLY AN EXECUTIVE WHO'S KNOWN AS A HIGHENERGY WORKAHOLIC MAINTAINS THAT HE'S CONSTANTLY IN TOUCH WITH HEINZ EXECUTIVES BY FAX AND PHONE BUT SOME SUBORDINATES SAY THAT REACHING HIM CAN BE DIFFICULT BECAUSE OF CHANGING TIME ZONES WHEN HE TRAVELS AND THEY RECALL THAT HE OFTEN JUGGLES HEINZ MEETINGS WITH MEETINGS INVOLVING EMPLOYEES OF HIS VARIOUS PRIVATE BUSINESSES A HEINZ SPOKESMAN RESPONDS THAT MR O'REILLY DOES HIS HEINZ BUSINESS AND HE MIGHT DO SOME OTHER BUT HE DOESN'T JUGGLE ANALYSTS WORRY ABOUT MR O'REILLY'S BUSY SCHEDULE TOO JOHN MAXWELL AN ANALYST WITH WHEAT FIRST SECURITIES SAYS I'D LIKE TO SEE HIM FOCUS MORE ON HEINZ AND LESS ON HIS PERSONAL PORTFOLIO BECAUSE I THINK HEINZ HAS GOT A LOT OF PROBLEMS IT'S A COMPANY THAT HAS NO GROWTH ANOTHER PROBLEM LACK OF A SECOND IN COMMAND MR O'REILLY HOLDS BOTH TOP MANAGEMENT POSTS AT HEINZ THERE ISN'T A NO 2 GUY SO HE DOESN'T HAVE A STRONG PRESIDENT TO BACK HIM UP WHILE HE'S GLOBETROTTING AROUND THE WORLD SAYS WILLIAM LEACH OF DONALDSON LUFKIN & JENRETTE BUT MR O'REILLY BRUSHES ASIDE THESE CONCERNS I'M ABSOLUTELY CONVINCED THAT MY MANAGERIAL REPUTATION IS 100 INVESTED IN HEINZ NOT IN MY INVESTMENTS ELSEWHERE HE SAYS WITH A 18 STAKE HE IS IN FACT HEINZ'S LARGEST INDIVIDUAL SHAREHOLDER HAVING ACQUIRED LARGE AMOUNTS OF STOCK BY EXERCISING OPTIONS HE CALLS HEINZ A BREAKOUT COMPANY READY TO MAKE ITS MOVE WITH ITS LARGEST CATEGORY FOOD SERVICE GROWING 5 A YEAR AND REPRESENTING NEARLY 20 OF TOTAL SALES THE COMPANY IS ALSO LOOKING AT ACQUISITIONS IN BABY FOOD ITS SECOND LARGEST CATEGORY AND WILL BE MAKING A MOVE IN THE BABYFOOD BUSINESS WITHIN THE NEXT TWO OR THREE MONTHS HE SAYS MR O'REILLY'S CONTRACT WITH HEINZ EXPIRES IN TWO YEARS BUT IF HE WANTS TO STAY ON I THINK THE BOARD WILL URGE HIM TO DO SO SAYS RICHARD CYERT A DIRECTOR HE SAYS THE BOARD ISN'T BOTHERED BY THE CHAIRMAN'S NEWSPAPER BUYING SPREE MR O'REILLY HAS A LONGSTANDING AGREEMENT WITH THE BOARD THAT HE CAN PURSUE OUTSIDE INVESTMENT INTERESTS A HEINZ SPOKESMAN ADDS IN ADDITION TO PUBLISHING THOSE INTERESTS INCLUDE A CONTROLLING STAKE IN ARCON A MINERALS CONCERN AND SHARES IN WATERFORD WEDGEWOOD LUXURY TABLEWARE BRANDS THE WELLWORTH RETAIL CHAIN IN NORTHERN IRELAND AND TWO IRISH CASTLES THAT HAVE BEEN CONVERTED INTO LUXURY HOTELS AS FOR MR O'REILLY HE'S KEEPING HIS OPTIONS OPEN WHILE HE'S CERTAIN HE'LL STAY AT HEINZ UNTIL THE END OF FISCAL 1996 BEYOND THAT DEPENDS ON HOW THE COMPANY IS AND ON HOW THE SUCCESSION IS THAT'S A SHIFTING GAME THERE ARE TWO OR THREE VERY GOOD GUYS INSIDERS SAY THE TOP CANDIDATES TO SUCCEED HIM ARE SENIOR VICE PRESIDENTS DAVID SCULLEY WILLIAM SPRINGER AND WILLIAM JOHNSON 9403020081 940302 REVIEW & OUTLOOK EDITORIAL MUNIFICENT MUNIS FOLLOW THE MONEY IS THE TRUSTED RULE OF THUMB FOR AFICIONADOS OF UNSEEMLY POLITICAL BEHAVIOR AND THERE'S NO BIGGER MONEY TRAIL THAN THE 13 TRILLION MUNICIPAL BOND MARKET USED BY LOCAL GOVERNMENTS TO FINANCE EVERYTHING FROM SEWERS TO PRISONS THE MUNI MARKET HAS LATELY BEEN STRUGGLING THROUGH THE CONFLICTOFINTEREST SWAMPS IN NEW JERSEY LAST YEAR A TOP AIDE TO THENGOV JIM FLORIO HAD TO QUIT AFTER IT CAME OUT THAT MERRILL LYNCH & CO HAD HIRED HIS TINY BROKERAGE FIRM TO TAKE PART IN MUNI UNDERWRITING FOR THE STATE NEW YORK CITY COMPTROLLER ELIZABETH HOLTZMAN LOST HER REELECTION BID AFTER RECEIVING A 450000 CAMPAIGN LOAN FROM FLEET BANK WHICH SUBSEQUENTLY WON A CITY CONTRACT SIMILAR SCENARIOS HAVE PLAYED OUT FROM LOUISIANA TO CHICAGO THE SYSTEM IS KNOWN AS PAY TO PLAY THE WAY IT WORKS IS THAT AN UNDERWRITER WHO COMPETES FOR A GOVERNMENT AGENCY'S BUSINESS MUST ALSO FORK OVER CAMPAIGN CONTRIBUTIONS TO ELECTED OFFICIALS WHO RUN THE AGENCY IT'S AN AWFUL SYSTEM WALL STREET DEVELOPS A VESTED INTEREST IN BIGGER AND FATTER GOVERNMENTS AT ALL LEVELS WHILE A FUNCTION THAT MOST VOTERS WOULD REGARD AS A PUBLIC TRUST BECOMES A WALLOW IN SLEAZE AT BOTH ENDS OF THE DEAL THE HIDDEN COSTS OF PAY TO PLAY ARE ULTIMATELY PAID BY THE TAXPAYERS AND BOND BUYERS MORE BROADLY THIS CORRUPT WAY OF DOING BUSINESS HAS THE POTENTIAL TO SPOOK MANY OF THE SMALL INDIVIDUAL INVESTORS WHO HAVE FLOCKED INTO MUNIS RECENTLY ENTER ARTHUR LEVITT APPOINTED LAST YEAR BY BILL CLINTON AS CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION MR LEVITT A TOP FUNDRAISER AMONG HIS FORMER WALL STREET COLLEAGUES KNOWS BONDS AND POLITICS FIRSTHAND AND HE'S CONCERNED THAT THEY'VE MIXED IN UNHEALTHY WAYS I CLEARLY REGARD THIS AS A RISK TO THE MARKET HE TELLS US HIS SOLUTION IS FOR UNDERWRITERS TO STOP GIVING CAMPAIGN CONTRIBUTIONS TO OFFICIALS WITH WHOM THEY DO BUSINESS TIRED OF SHAKEDOWNS FROM POLS MANY FIRMS ARE HAPPY TO OBLIGE LAST FALL 17 WALL STREET UNDERWRITERS VOLUNTARILY AGREED TO STOP MAKING DONATIONS NOW THE SEC HEAD WANTS TO REQUIRE ALL UNDERWRITERS TO WAIT TWO YEARS AFTER MAKING A CONTRIBUTION BEFORE SEEKING BOND BUSINESS FROM THE RECIPIENT THE NEW SEC RULE ALSO WOULD REQUIRE FIRMS TO DISCLOSE THE HIRING OF POLITICALLY CONNECTED CONSULTANTS THE LEVITT REFORM HAS GENERATED HOWLS OF OUTRAGE FROM YOU GUESSED IT THE POLITICOS POCKETING THE MOOLA TODAY MR LEVITT WILL GO INTO THE LION'S DEN TO DELIVER A TOUGH SPEECH TO A MEETING OF STATE TREASURERS IN WASHINGTON WE DOUBT THAT HE'LL BE ABLE TO PACIFY THE POLS MANY OF WHOM HAVE BEEN WRITING AND PHONING THE CHAIRMAN TO HARANGUE HIM ONE AMAZING LETTER FROM THE NATIONAL LEAGUE OF CITIES SAYS LIMITING BOND FIRMS' CONTRIBUTIONS IS FUNDAMENTALLY INCOMPATIBLE WITH OUR AMERICAN SYSTEM OF GOVERNMENT GOSH DO THEY TEACH ABOUT PAY TO PLAY IN EIGHTHGRADE CIVICS CLASSES THESE DAYS MAYBE THEY SHOULD WHAT'S BAD NEWS FOR PROFESSIONAL POLITICIANS MAY BE GOOD NEWS FOR EVERYONE ELSE HOWEVER SINCE IT'S A SAFE BET THAT UNDERWRITERS LIKE MOST SPECIAL INTERESTS OVERWHELMINGLY GIVE TO INCUMBENTS CUTTING OFF THIS SOURCE OF ENTRENCHING CASH MAY MAKE FOR MORE COMPETITIVE ELECTIONS IT'S ALSO HARD TO SHED TEARS OVER THE COMPLAINT MADE BY SOME SMALL REGIONAL MUNI UNDERWRITERS THAT THE SEC RULES WOULD UNFAIRLY HURT THEM THE BIG WALL STREET FIRMS THE GOLDMAN SACHS AND MORGAN STANLEYS WILL GET A PIECE OF THE UNDERWRITING BUSINESS NO MATTER WHAT THIS ARGUMENT GOES IT'S THE SMALL GUYS WHO NEED TO GREASE THEIR WAY INTO THE DEALS BUT MANY OF THE BIG WALL STREET FIRMS HAVE BEEN THE BIGGEST CULPRITS OR DEPENDING ON HOW YOU LOOK AT IT THE BIGGEST VICTIMS IN PAY TO PLAY SCHEMES MAINLY BECAUSE THEY'VE HAD THE MOST MONEY TO THROW AROUND PERHAPS ONCE ALL CONTRIBUTIONS ARE BANNED SMALL DEALERS WILL HAVE A FAIRER SHOT AT LANDING BUSINESS BECAUSE THEY WON'T HAVE TO COMPETE AGAINST THE CASH OF THE WALL STREET POWERHOUSES THE SEC RULE ISN'T A PANACEA AS MR LEVITT ADMITS IT LEAVES A LARGE LOOPHOLE BY NOT COVERING CONTRIBUTIONS MADE BY CONTRACTORS OR LAWYERS CONNECTED WITH THE UNDERWRITERS BUT IF AS EXPECTED THE SEC ADOPTS THE RULE LATER THIS MONTH IT WILL BE AN IMPORTANT CONFIDENCEBUILDING MEASURE FOR THE NATION'S BOND INVESTORS 9403020080 940302 POLITICS & POLICY STANCE ON BELLTCI SUGGESTS THAT FCC'S CHIEF WILL BE TOUGH FORCE IN INDUSTRY BATTLES TO COME BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT A VIRGINIA RETREAT LAST FRIDAY CHAIRMAN REED HUNDT OF THE FEDERAL COMMUNICATIONS COMMISSION GATHERED A NUMBER OF THE AGENCY'S TOP MANAGERS AROUND HIM TO ASSESS THE FALLOUT FROM THE COLLAPSE OF THE MERGER BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC THE CAPITAL WAS STILL RINGING WITH DENUNCIATIONS OF THE FCC AND ITS NEW CHAIRMAN OVER THE CABLETELEVISIONRATE ROLLBACK VOTE THAT THE TWO COMPANIES BLAMED FOR KILLING THEIR DEAL BUT MR HUNDT'S MESSAGE TO HIS TROOPS WAS ANYTHING BUT CONTRITE OUR MISSION WAS TO PROTECT THE PUBLIC AGAINST UNREASONABLE PRICES WHILE PROMOTING BUSINESS HE SAID WE DID THAT FOR MR HUNDT SUDDENLY THE MOST VISIBLE AND CONTROVERSIAL FCC CHAIRMAN SINCE NEWTON MINOW WHO CALLED TV A VAST WASTELAND IN THE 1960S THE FIRESTORM OVER THE BELL ATLANTICTCI MERGER COLLAPSE OFFERS CLUES TO HOW HE WILL HANDLE A HOST OF CONTENTIOUS ISSUES PRIMARILY THE RESULT OF THE TELECOMMUNICATIONS LEGISLATION THAT IS ON A FAST TRACK IN CONGRESS THE LEGISLATION WHICH CLEARED A HOUSE SUBCOMMITTEE YESTERDAY WOULD IN LARGE PART LEAVE IT UP TO THE FCC AND THE JUSTICE DEPARTMENT TO MANAGE THE TRANSITION OF TELEPHONE AND CABLE COMPANIES FROM MONOPOLIES TO COMPETITIVE INDUSTRIES ALL INDICATIONS ARE THAT THE COMPANIES WILL FIND MR HUNDT A TOUGH AND SKEPTICAL FORCE EVEN IN THE FACE OF ARGUMENTS THAT DEVELOPMENT OF THE SOCALLED INFORMATION SUPERHIGHWAY A PET PROJECT OF MR HUNDT'S CLOSE FRIEND VICE PRESIDENT AL GORE IS AT STAKE AS THE BELL ATLANTICTCI EPISODE SHOWS MR HUNDT ISN'T ONE TO BE DAZZLED BY UNTESTED CLAIMS OF BENEFITS WAITING JUST AROUND THE CORNER AND IS WILLING ON OCCASION TO ABSORB FIERCE POLITICAL ATTACKS TO DEFEND HIS VISION OF HOW NEW COMMUNICATIONS SERVICES CAN BE BROUGHT TO MARKET WITHOUT BURDENING CONSUMERS NOR IS HE MUCH INCLINED TO EASE UP ON REGULATION UNTIL HE CONCLUDES THAT COMPETITION IN THE TELECOMMUNICATIONS ARENA IS FIRMLY ROOTED THE '90S WILL BE A TRANSITIONAL PERIOD FOR THE CABLE AND TELEPHONE INDUSTRIES HE SAYS IN AN INTERVIEW IN THE CABLERATE DECISION HE INSISTS OUR GOAL WAS TO MAKE THIS A MODEL OF HOW TO GO THROUGH THIS TRANSITION WE UNDERSTAND THE INDUSTRY AND DON'T WANT TO HURT IT BUT WE DON'T WANT CABLE COMPANIES TO USE THEIR CURRENT CONSUMERS TO INVEST IN TOMORROW'S SERVICES TO CRITICS IN CONGRESS AND THE TELECOMMUNICATIONS INDUSTRY THOUGH MR HUNDT'S WORDS HAVE A HOLLOW RING AFTER THE DEMISE OF THE BELL ATLANTICTCI DEAL SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS TOOK THE FLOOR TO BLAST THE 1992 CABLE TV RATEREREGULATION BILL AS A FIASCO THAT EXPOSED THE GOVERNMENT TINKERING WITH SOMETHING THAT IT CLEARLY DIDN'T UNDERSTAND AND PREDICTED THAT MR HUNDT'S REGULATORY POLICIES WOULD STIFLE THE SPREAD OF NEW TELECOMMUNICATIONS SERVICES THE ADMINISTRATION SAYS IT SUPPORTS THE ESTABLISHMENT OF AN INFORMATION SUPERHIGHWAY BUT SEEMS EAGER TO THROW UP ROADBLOCKS IN THE WAY OF ITS DEVELOPMENT PARTICULARLY BITTER ARE THE CABLETV COMPANIES WHO SAW THEIR STOCK VALUES SINK AND THEIR DREAMS OF CASHING OUT TO THE PHONE COMPANIES DIM IN THE WAKE OF THE FCC VOTE TO ORDER AN AVERAGE 7 ROLLBACK IN RATES TO SUBSCRIBERS STEPHEN EFFROS PRESIDENT OF THE CABLE TELECOMMUNICATIONS ASSOCIATION SAYS THAT MR HUNDT'S PUSH FOR THE ROLLBACK WAS LITTLE MORE THAN AN EFFORT TO GRAB HEADLINES WITH WHAT AMOUNTS TO A PUNY BENEFIT CUTTING THE FEE FOR MTV IN EFFECT MR EFFROS CHARGES THE FCC IS MICROMANAGING THE CABLE INDUSTRY A SYMPTOM NOT ONLY OF REINVENTING GOVERNMENT BUT ALSO OF REINVENTING BUSINESS ECONOMICS MR EFFROS'S REINVENTING GOVERNMENT REFERENCE AMOUNTS TO A LITTLEDISGUISED SLAP AT THE MAN MANY IN THE INDUSTRY SEE AS THE FORCE BEHIND THE 45YEAROLD MR HUNDT VICE PRESIDENT GORE THE TWO MEN HAVE KNOWN EACH OTHER SINCE BOYHOOD WHEN THEY WERE CLASSMATES AND FRIENDS AT WASHINGTON'S TONY ST ALBAN'S SCHOOL MR HUNDT WENT ON TO YALE AND ITS LAW SCHOOL AND ULTIMATELY BECAME A LITIGATOR AT THE WASHINGTON LAW FIRM OF LATHAM & WATKINS WHERE ONE OF HIS PARTNERS WAS FORMER REAGANERA FCC CHAIRMAN MARK FOWLER FOR THE PAST DECADE HE ALSO ADVISED MR GORE ON ECONOMIC ISSUES AND WAS A SENIOR ADVISER TO THE CLINTON CAMPAIGN AND TRANSITION TEAM MR GORE OF COURSE HAS MADE THE EMBRACE OF THE INFORMATION SUPERHIGHWAY ONE OF THE HALLMARKS OF HIS VICE PRESIDENCY BUT DESPITE THE COLLAPSE OF THE BELL ATLANTICTCI MERGER A MEGADEAL THAT WAS SUPPOSED TO JUMPSTART THE TELECOMMUNICATIONS REVOLUTION BOTH HE AND MR HUNDT INSIST THERE IS NO EMBARRASSMENT ABOUT HOW IT TURNED OUT AS EVERYONE KNOWS VERY WELL THEY WERE ON THE ROCKS AND LOOKING FOR A REASON TO CALL IT OFF MR GORE TOLD REPORTERS AFTER THE DEAL COLLAPSED AND MR HUNDT WHILE ACKNOWLEDGING THAT RATE REGULATION IS NEVER PAINLESS SAYS THE FCC VOTE WILL TAKE EXCESSIVE PROFITS OUT OF CABLETV RATES UNTIL COMPETITION MAKES REGULATION UNNECESSARY AT THE SAME TIME HE SAYS IT WILL SPUR CABLE COMPANIES TO INVEST FOR THE FUTURE IN NEW AND UNREGULATED SERVICES THE PUBLIC IS OUR NO 1 CUSTOMER SAYS BLAIR LEVIN MR HUNDT'S TOP AIDE INDUSTRY CLEARLY IS A CUSTOMER TOO BUT IT IS A DIFFERENT RELATIONSHIP THAN WITH SAY FEDERAL EXPRESS WE'RE NOT SEEKING 100 HAPPINESS 9403020079 940302 A LACK OF LANCELOTS FAILS TO DISCOURAGE THIS ARTISAN'S WORK LUTHER SOWERS A CROSS BETWEEN CELLINI AND RUBE GOLDBERG FASHIONS CHIVALRIC GEAR BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL SALISBURY NC TO LEARN WHY LUTHER SOWERS ONCE CORRESPONDED WITH DEAR ABBY ON THE SUBJECT OF CHASTITY BELTS IT HELPS TO VISIT HIS PECULIAR WORKSHOP IN THE PINE WOODS OF NORTH CAROLINA I MAKE EVERYTHING MR SOWERS SAYS IGNITING A BLOWTORCH EXCEPT PROFIT HEATING A HUNK OF STEEL HE STARTS HAMMERING IT INTO THE SHAPE OF A CONQUISTADOR'S HELMET HE TAKES A BREAK AND ADDS SEVERAL LINKS TO A SHIRT OF CHAIN MAIL STREWN ACROSS A NEARBY WORKBENCH ARE SILVER SPURS LIKE THOSE GEORGE WASHINGTON WORE AT VALLEY FORGE MR SOWERS ALSO FASHIONS 20THCENTURY ATTIRE SUCH AS AN EXACT REPLICA OF PANCHO VILLA'S BANDOLEER STRICTLY SPEAKING MR SOWERS IS A MASTER ARMORER ONE OF A TINY BREED OF ARTISANS CAPABLE OF MAKING MUSEUMQUALITY HELMETS VISORS AND OTHER CHIVALRIC APPAREL BUT OUTFITTING KNIGHTS IS A HARD WAY TO MAKE A LIVING THESE DAYS SO THE 53YEAROLD CRAFTSMAN HAS BRANCHED OUT BECOMING A MASTER COUNTERFEITER FOR ALL HISTORIC OCCASIONS THERE'S NO COPYRIGHT ON THE PAST SAYS MR SOWERS WHO IS LARGELY SELFTAUGHT AND USES EVERYTHING FROM COAT HANGERS TO CAR FENDERS IN HIS FABRICATIONS MUSEUM CURATORS AND MOVIE PROP MANAGERS PRAISE MR SOWERS'S OBSESSIVE ATTENTION TO DETAIL BUT THIS SAME EXPERTISE MAKES HIM THE CRITIC FROM HELL WHEN IT COMES TO PERIOD FILMS COMMENTING ON GETTYSBURG FOR INSTANCE HE COMPLAINS THAT MARTIN SHEEN AS ROBERT E LEE WEARS THE MOST AWFUL COSTUME I'VE EVER SEEN WHY THE BUTTON PLACEMENT IS POOR AND SO ARE THE SLEEVE SEAMS LIKEWISE THE LAST OF THE MOHICANS FOR WHICH MR SOWERS CRAFTED SEVERAL SWORDS RATES ONLY A CPLUS THE BEARSKIN ON THE GRENADIERS' HATS WAS ALL WRONG HE GRIPES IT WASN'T IN USE FOR ANOTHER 20 YEARS THE MOVIE GERONIMO FARES BETTER BUT HE BLASTS THE FILM FOR ITS OVERWEIGHT CAVALRYMEN FAT IN FACT IS MR SOWERS'S PET PEEVE FEW SOLDIERS FROM EARLIER DAYS CARRIED AS MUCH HEFT AS MODERN MEN HE SAYS AND WHEN YOU GET TO THE SIZE OF A PAVAROTTI EVEN THE BESTMADE COSTUME JUST LOOKS LIKE A BARREL WITH CLOTH AROUND IT I REFUSE TO MAKE UNIFORMS FOR PORKERS ACTUALLY MR SOWERS IS MUCH MORE OF A STICKLER THAN THAT BECAUSE FEW CIVIL WAR HORSEMEN WEIGHED OVER 135 POUNDS HE WON'T OUTFIT CAVALRY REENACTORS WITH MORE THAN A 34INCH WAIST HE ALSO BRISTLES WHEN PROP HOUSES REQUEST GEAR TO FIT 6FOOTTALL ACTORS FOR THE SOUND OF MUSIC OR OTHER WORLD WAR II DRAMAS SOLDIERS RAISED IN THE DEPRESSION WERE SMALLER THAN US HE EXPLAINS YOU'RE LUCKY TO FIND A NAZI STORMTROOPER'S JACKET BIGGER THAN SIZE 40 MR SOWERS'S FETISH FOR MARTIAL GEAR GOES BACK TO CHILDHOOD THE SON OF A POSTMASTER AND PARTTIME FARMER HE GREW UP READING PRINCE VALIANT COMICS AND WATCHING PIRATE FILMS STARRING ERROL FLYNN WHEN HIS HIGHSCHOOL LATIN CLASS HELD A BANQUET MOST STUDENTS WORE TOGAS MR SOWERS TURNED UP IN FULL GLADIATORIAL GARB MY DAD USED TO COMPLAIN THAT THE BARN LEAKED BECAUSE I'D USED THE ROOFING FOR A ROMAN BREASTPLATE AND SWORD HE SAYS AFTER ART SCHOOL AND A STINT AS A SCHOOLTEACHER MR SOWERS RETURNED TO HIS PARENTS' FARM TO PURSUE HIS CHILDHOOD HOBBY WORKING IN A MAKESHIFT STUDIO AND ATTRACTING BUSINESS THROUGH WORD OF MOUTH HE HAS BUILT A CLIENTELE THAT INCLUDES THE NATIONAL PARK SERVICE AND MUSEUMS AT SITES SUCH AS COLONIAL WILLIAMSBURG WHEN LUTHER REPRODUCES A SWORD OR PIECE OF ARMOR HE GIVES IT ALL THE RIGHT DIMPLES AND HANDMADE IMPERFECTIONS SAYS WILLIAM BROWN A CURATOR WITH THE NATIONAL PARK SERVICE YOU CAN'T TELL HIS WORK FROM THE ORIGINAL SUCH HISTORIC ABSOLUTISM THOUGH DOESN'T EXTEND TO TOOLS OR MATERIALS PART TINKER PART TAILOR PART MILITARY TACTICIAN MR SOWERS HAS A WORKSHOP THAT LOOKS LIKE A CROSS BETWEEN A MUSEUM BASEMENT AND AN AUTOBODY SHOP IN A CORNER A MANNEQUIN IN A SUIT OF ARMOR KEEPS WATCH OVER WORKBENCHES STREWN WITH SCRAPS OF LEATHER PAINT THINNER AND CAR FENDERS GERMAN ARMOR FROM 1580 IS THE EXACT SAME THICKNESS AS THE HOOD OF A 1953 BUICK HE EXPLAINS ADDING THAT NEWER CARS ARE SO THIN THAT THERE'S NOT ENOUGH METAL IN THEM TO BEAT PROPERLY MR SOWERS ALSO HAS FOUND THAT COAT HANGERS CLIPPED WITH BOLT CUTTERS DO JUST FINE AS THE LINKS FOR REPRODUCTION CHAIN MAIL DESPITE SUCH MODERN WARE MOST OF MR SOWERS'S LABOR STILL BOILS DOWN TO A LONELY MAN BEATING METAL OR SEWING CLOTH FOR HOURS ON END THIS HAS GIVEN HIM AN ALMOST MYSTICAL AFFINITY WITH THE ARTISANS OF FORMER CENTURIES HE WONDERS FOR INSTANCE IF THEY DEVELOPED TENDON PAIN AS HE HAS FROM HOLDING AND HAMMERING STEEL OR CRAMPED HANDS FROM THE REPETITIVE STRAIN OF LINKING CHAIN MAIL IF THEY BECAME APPRENTICES AT 12 THEY'D BE CRIPPLES BY MIDDLE AGE HE SAYS HE ALSO FEELS AWE FOR THOSE WHO TOILED WITH NEEDLE AND THREAD A SKILL HE LEARNED FROM HIS GRANDMOTHER SEWING AND EMBROIDERING ONE UNIFORM CAN TAKE 100 HOURS WHEN YOU THINK OF A NAPOLEONIC ARMY OF 500000 MEN EACH ONE WEARING HANDSEWN TROUSERS VEST COAT AND HAT HE SAYS YOU BEGIN TO REALIZE THAT MORE HOURS HAVE PROBABLY BEEN SPENT SEWING THAN AT ANY OTHER HUMAN OCCUPATION THE LABORINTENSIVE NATURE OF HIS WORK IS ONE REASON MR SOWERS MAKES A RELATIVELY MODEST LIVING ABOUT 30000 AFTER EXPENSES LAST YEAR ANOTHER REASON IS THAT TWO OF HIS PRINCIPAL CLIENTS MUSEUMS AND THEATERS HAVE LITTLE MONEY TO SPEND WHILE MORE LUCRATIVE BUSINESS FROM FILM STUDIOS IS NOTORIOUSLY IRREGULAR MR SOWERS'S PRODUCTIVITY ALSO IS PARED BY HIS OWN PERSONALITY A LOQUACIOUS MAN HE ANSWERS ALL HIS OWN PHONE CALLS OFTEN FROM COLLECTORS WHO ENJOY CHATTING FOR HOURS ABOUT OBSCURE MILITARY MATTERS IF I HAD A SECRETARY HE SAYS THEY'D BE BOTHERING ME EVERY TWO MINUTES ASKING WHAT'S A SABRETACHE' OR HOW DO YOU SPELL SHAKO' A SABRETACHE BY THE WAY IS A LEATHER POUCH WORN BY 19THCENTURY CAVALRYMEN AND A SHAKO IS A STIFF CYLINDRICAL CAP COMMON IN NAPOLEON'S DAYS MR SOWERS ALSO TAKES FREQUENT BREAKS TO STOKE HIS WOOD STOVE FEED HIS HORSES AND HIS PET LABRADOR BLITZKRIEG OR TO CHECK ON HIS MOTHER WITH WHOM HE SHARES THE FARMHOUSE IN WHICH HE WAS RAISED LUTHER CAN DO ANYTHING HE SETS HIS MIND TO EXCEPT THINGS I WANT DONE LIKE FIXING WINDOW CORDS OR CLEARING BRUSH RUTH SOWERS SAYS SHAKING HER HEAD MRS SOWERS ALSO HAS BECOME ACCUSTOMED TO THE STRANGE TRAFFIC FLOWING TO AND FROM HER SON'S WORKSHOP INCLUDING CRATES OF LANCES MUSKETS AND SURPLUS MILITARY JEEPS AND TRUCKS THAT MR SOWERS HIRES OUT FOR USE IN FILMS SOMETIMES AS DESTRUCTION VEHICLES TO BE BURNED OR BOMBED IN BATTLE SCENES IF THE FBI EVER BURST IN HERE MR SOWERS SAYS THEY'D THINK I WAS SOME SORT OF DAVID KORESH WAREHOUSING WEAPONS OF MASS DESTRUCTION NOT ALL SEEKING OUT MR SOWERS ARE HISTORICALLY OR MILITARILY MINDED HOWEVER WHICH BRINGS US BACK TO CHASTITY BELTS SOME YEARS AGO MR SOWERS READ A DEAR ABBY LETTER FROM A WIFE WITH A POSSESSIVE HUSBAND SHE WANTED TO KNOW WHERE SHE COULD FIND A CHASTITY BELT TO CALM HIS JEALOUSIES A QUESTION ADVICE COLUMNIST ABIGAIL VAN BUREN COULDN'T ANSWER AS IT HAPPENS MR SOWERS HAD STUDIED A BRITISH MUSEUM MONOGRAPH ON THE SUBJECT HE WROTE TO ABBY SAYING ANYONE SEEKING SUCH AN ITEM MIGHT CONTACT HIM SEVERAL READERS DID THOUGH NONE COMMISSIONED A CHASTITY BELT THE REASON MR SOWERS SUSPECTS IS THAT HE INCLUDED ONE CAVEAT IN HIS LETTER WITH CHARACTERISTIC PERFECTIONISM HE INFORMED HER I WOULD NEED SEVERAL FITTINGS AND TEST TRIALS TO GUARANTEE THE PRODUCT 9403020078 940302 MARKETING & MEDIA ADVERTISING BALTIMORE MEASURE CLAMPS DOWN ON TOBACCO ADS IN PRIVATE SPACES BY LAURA BIRD IT'S BEEN A BAD WEEK FOR THE TOBACCO INDUSTRY FIRST THE SURGEON GENERAL ATTACKED JOE CAMEL CIGARETTE ADVERTISING THEN THE FOOD AND DRUG ADMINISTRATION RAISED THE POSSIBILITY OF REGULATING CIGARETTES NOW A MORE IMMEDIATE THREAT TO TOBACCO COMPANIES LOOMS IN BALTIMORE THE BALTIMORE CITY COUNCIL VOTED MONDAY TO RESTRICT MUCH OF THE CIGARETTE ADVERTISING IN THE CITY FORBIDDING OUTDOOR ADS ON BILLBOARDS ON THE SIDES OF BUILDINGS AND ON FREESTANDING SIGNBOARDS THE MOVE FOLLOWS BY LESS THAN THREE MONTHS A SIMILAR MEASURE GOVERNING ADVERTISING FOR ALCOHOLIC BEVERAGES INCLUDING BEER AND WINE IN BALTIMORE THE BALTIMORE ORDINANCES ARE THE LATEST AND IN SOME WAYS THE MOST FARREACHING OF LOCAL EFFORTS TO RESTRICT TOBACCO AND ALCOHOL ADVERTISING IN PUBLIC PLACES CITIES SUCH AS BOSTON SAN FRANCISCO AND DENVER HAVE VOTED TO KEEP TOBACCO ADS OFF PUBLIC TRANSPORTATION AND OTHER CITYOWNED PROPERTY BUT THE BALTIMORE ORDINANCE GOES FURTHER RESTRICTING ADS ON PRIVATELY OWNED SPACE IT'S GOING AFTER BILLBOARDS ON PRIVATE PROPERTY SAYS DAVID VERSFELT WHO IS COUNSEL TO THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES THIS ISN'T REGULATING THEM THIS IS BANNING THEM THE CIGARETTE MEASURE IS ALMOST CERTAIN TO FACE LEGAL CHALLENGES FROM THE TOBACCO INDUSTRY THE ALCOHOL MEASURE IS BEING CONTESTED IN US DISTRICT COURT IN BALTIMORE BY ANHEUSERBUSCH AND PENN ADVERTISING WHICH OWNS 1000 OF THE 1100 BILLBOARDS IN BALTIMORE WE THINK THIS JUST COMES DOWN TO A BASIC FIRSTAMENDMENT RIGHT TO ADVERTISE SAYS FRED LAUER PENN'S DIRECTOR OF GOVERNMENTAL AFFAIRS HE SAYS ABOUT 43 OF THE COMPANY'S 10 MILLION IN REVENUE COMES FROM AFFECTED TOBACCO AND ALCOHOL BILLBOARDS EXEMPTED FROM THE BALTIMORE BANS ARE BILLBOARDS ON PUBLIC TRANSPORTATION ALONG INTERSTATE HIGHWAYS IN SPORTS STADIUMS AND ON TAXICABS BUT EVEN THOSE EXEMPTIONS MAY NOT LAST LONG ALREADY MARYLAND GOVERNOR DONALD SCHAEFER HAS SIGNED AN EXECUTIVE ORDER BANNING TOBACCO AND ALCOHOL ADS FROM CITY BUSES THE BALTIMORE MEASURES ARE THE RESULT OF CAMPAIGNS BY SEVERAL LOCAL ACTIVIST GROUPS INCLUDING THE CITY WIDE LIQUOR COALITION WHICH CONTEND THAT ALCOHOL AND TOBACCO COMPANIES TARGET MINORS WITH ADS IN LOWERINCOME NEIGHBORHOODS BEV THOMAS CHAIRWOMAN OF THE GROUP SAYS SHE AND LIKEMINDED CITIZENS GREW DISGUSTED BY PICTURES OF GLAMOROUS PEOPLE SMOKING AND DRINKING AT EVERY TURN IN THESE NEIGHBORHOODS A YOUNG PERSON WOULD SEE THAT AS THE WAY TO BE SUCCESSFUL TO HAVE EITHER A DRINK OR A CIGARETTE IN THEIR HANDS MS THOMAS SAYS SHE OBSERVES THAT SUCH BRANDS AS NEWPORT CIGARETTES AND HENNESSEY COGNAC WERE MOST PREVALENT IN PREDOMINANTLY BLACK LOWINCOME NEIGHBORHOODS IN LOWINCOME WHITE COMMUNITIES ADS FOR CAMEL AND MARLBORO CIGARETTES AND JACK DANIELS LIQUOR DOMINATED SHE SAYS WE DON'T SEE A NIKE NOT A COCACOLA OR A CAMPBELL SOUP THE ALCOHOL INDUSTRY ARGUES THAT UNLESS IT CAN BE SHOWN THAT ITS ADS INCREASE CONSUMPTION THERE IS NO REASON TO BAN THEM IN A PREPARED STATEMENT ANHEUSERBUSCH SAID IT BELIEVES BALTIMORE WON'T BE ABLE TO PROVE AS IT MUST THAT THERE IS A CAUSAL RELATIONSHIP BETWEEN EXPOSURE TO BEER ADVERTISING AND CONSUMPTION IN GENERAL AND UNDERAGE CONSUMPTION IN PARTICULAR THE TOBACCO INSTITUTE SAYS IT HASN'T YET DECIDED WHETHER TO FILE A FORMAL LEGAL CHALLENGE BUT IT IS ALREADY AT WORK DEBUNKING THE NOTION THAT A BAN WOULD AFFECT THE RATE OF SMOKING WALKER MERRYMAN VICE PRESIDENT AT THE INSITUTE ASSERTS THAT STUDIES SHOW TOBACCO AD RESTRICTIONS IN SCANDINAVIAN COUNTRIES HAD NO EFFECT ON SMOKING THE WORLD ISN'T A SANDBOX HE SAYS YOU CAN'T LIMIT THE ADULT POPULATION OR ANY CITY TO SEEING ADVERTISING THAT IS ONLY FIT FOR CHILDREN DRAFTERS OF THE BALTIMORE MEASURES DISAGREE CITING A BAN ON OUTDOOR TOBACCO ADVERTISING IN UTAH THAT HAS BEEN IN PLACE FOR MORE THAN SIX DECADES VIEWERS' EXPOSURE TO OUTDOOR ADVERTISING IS ALMOST COMPLETELY INVOLUNTARY THEY SAY COMPARED WITH ADS IN MAGAZINES NEWSPAPERS AND TELEVISION WHICH CAN BE SHUT OUT BY TURNING A PAGE OR CHANGING A CHANNEL THE SURGEON GENERAL'S REPORT WHICH LINKS TEEN SMOKING TO TOBACCO ADVERTISING OFFERS MORE AMMUNITION FOR THE BILLS' PROPONENTS HOWEVER SCIENTIFIC PROOF IS BESIDE THE POINT IN THESE CASES SAYS CHRIS FRITZ A LAWYER WHO WORKS WITH THE COALITION COURTS ARE REALIZING SOME CASES AREN'T SUSCEPTIBLE TO SCIENTIFIC PROOF HE SAYS IN THIS INSTANCE THERE ISN'T ANY CONTROL GROUP THERE IS NO PART OF SOCIETY THAT HASN'T BEEN PERMEATED BY CIGARETTE AND ALCOHOL ADVERTISING PHILIPS CONSUMER ELECTRONICS A UNIT OF PHILIPS ELECTRONICS NV TAPPED D'ARCY MASIUS BENTON & BOWLES NEW YORK FOR ITS ESTIMATED 30 MILLION ACCOUNT ENDING A REVIEW THAT HAD ATTRACTED SOME OF THE BIGGEST NAMES ON MADISON AVENUE LAST FALL PHILIPS ABRUPTLY DISMISSED SAATCHI & SAATCHI CO'S BACKER SPIELVOGEL BATES AND PUT THE ACCOUNT INTO REVIEW THE AGENCY CHANGE WAS A SURPRISE AND SOMETHING OF A MYSTERY BACKER'S SMART VERY SMART COMMERCIALS FOR PHILIPS'S MAGNAVOX CONSUMER ELECTRONICS BRAND STARRING THE COMEDIAN JOHN CLEESE WERE CONSIDERED AMONG THE BEST WORK IT DID BY ONE ESTIMATE A DOZEN AGENCIES CLAMORED TO GET INTO THE PITCH THE SEARCH HAD BEEN NARROWED RECENTLY TO DMB&B AND TWO OTHER SHOPS FALLON MCELLIGOTT MINNEAPOLIS AND MULLEN ADVERTISING WENHAM MASS PHILIPS SAID A NEW MAGNAVOX CAMPAIGN IS DUE THIS FALL SEPARATELY ANOTHER PHILIPS AGENCY SEARCH IS CONTINUING FOR CDI PHILIPS'S INTERACTIVE COMPACTDISK HOMEENTERTAINMENT SYSTEM FINALISTS IN THE PITCH FOR THE ESTIMATED 10 MILLION ACCOUNT ARE THE LOS ANGELES OFFICE OF DMB&B LOS ANGELES AGENCY COHEN/JOHNSON AND SAN FRANCISCO SHOP WOOLWARD & PARTNERS FOOTE CONE & BELDING COMMUNICATIONS CHICAGO OUSTED ERIC WEBER FROM HIS POSITION AS EXECUTIVE CREATIVE DIRECTOR OF ITS FLAGSHIP OFFICE INDUSTRY EXECUTIVES SAID NAMING GEOFF THOMPSON A TOP CREATIVE MANAGER IN ITS SAN FRANCISCO OFFICE AS MR WEBER'S SUCCESSOR MR WEBER 51 YEARS OLD SAID THE DECISION TO LEAVE HIS HIGHPROFILE JOB WAS HIS OWN I HAVEN'T WANTED TO BE AN EXECUTIVE CREATIVE DIRECTOR FOR SIX MONTHS NOW HE SAID I WANTED TO GO BACK TO NEW YORK AND CONCENTRATE ON MY OWN CAMPAIGNS MR WEBER LEFT A TOP CREATIVE JOB AT YOUNG & RUBICAM NEW YORK IN 1991 FOR THE POST AT FCB HE SAID HE INTENDS TO FINISH WORK ON A NEW CAMPAIGN FOR DINERS CLUB AND THEN FIND A NEW POSITION AT FCB'S NEW YORK OR PHILADELPHIA OPERATIONS FOOTE CONE ANNOUNCED THE APPOINTMENT OF MR THOMPSON TO THE POST OF EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR OVERSEEING CREATIVE OUTPUT OF ITS CHICAGO OFFICE MR THOMPSON 51 WAS PREVIOUSLY SENIOR VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT FCB SAN FRANCISCO WORKING ON ACCOUNTS INCLUDING COORS BREWING'S ZIMA CLEARMALT AND LEVI'S JEANS FOR WOMEN TERMINATION NIKON INC A UNIT OF NIKON CORP OF JAPAN FIRED AMMIRATI & PURIS AND SAID IT WOULD START A SEARCH FOR A NEW SHOP IN A STATEMENT NIKON COMPLAINED OF FREQUENT CHANGES IN CREATIVE AND ACCOUNT SERVICES PERSONNEL MARTIN PURIS THE AGENCY CHIEF EXECUTIVE COUNTERED THAT THE ACCOUNT WAS IMPOSSIBLE TO STAFF THE WAY NIKON WANTED BECAUSE IT DIDN'T APPROACH THE 15 MILLION BILLINGS PROMISED IN THE PITCH THREE YEARS AGO WHO'S NEWS BAYER BESS VANDERWARKER CHICAGO NAMED MARY ANN QUICK EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER ENDING A YEARLONG SEARCH FOR A CREATIVE SUCCESSOR TO FORMER PARTNER TONY VANDERWARKER WHO LEFT THE AGENCY IN 1992 MS QUICK 45 YEARS OLD WAS AN EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT LEO BURNETT CO WORKING ON ACCOUNTS INCLUDING UNITED AIRLINES MCDONALD'S KELLOGG'S AND PROCTER & GAMBLE TV ADVERTISING REVENUE FROM ADVERTISING AT TELEVISION STATIONS ROSE 4 IN 1993 TO 237 BILLION ACCORDING TO THE TELEVISION BUREAU OF ADVERTISING FOR THE FULL YEAR ADVERTISING BY LOCAL COMPANIES WAS UP 6 TO 557 BILLION SPOT OR LOCAL ADVERTISING BY NATIONAL ADVERTISERS WAS UP 3 TO 562 BILLION QUARTERLY RESULTS WERE MORE DRAMATIC TOTAL AD REVENUE ROSE 11 IN THE FOURTH QUARTER OF 1993 COMPARED WITH THE YEAREARLIER PERIOD ACCOUNT ALLY & GARGANO NEW YORK SAID IT WON AN ESTIMATED 3 MILLION ACCOUNT FROM THE KRUGERRAND ORGANIZATION THE INTERNATIONAL CHAMBER OF MINES THAT MINTS THE GOLD BULLION COINS 9403020077 940302 CREDIT MARKETS JUMP IN PURCHASING ASSOCIATION'S PRICE INDEX FUELS INFLATION FEARS PUSHING DOWN BOND PRICES BY THOMAS D LAURICELLA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET SELLOFF TURNED INTO A ROUT YESTERDAY AS PRICES OF TREASURY SECURITIES SUFFERED THEIR BIGGEST LOSSES IN MONTHS ON WORRISOME INFLATION NEWS THE VIOLENT DOWNDRAFT LEFT INVESTORS UNWILLING TO TAKE ADVANTAGE OF THE HIGHER YIELDS RESULTING FROM THE SELLOFF TRADERS ARE LOOKING TO THE FEDERAL RESERVE TO SIGNAL ITS RESOLVE AGAINST INFLATION BY RAISING SHORTTERM INTEREST RATES A SECOND TIME UNTIL WE GET THE MARKET TO STABILIZE CUSTOMERS WON'T BUY SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK SECURITIES CORP AND YOU WON'T GET SOME STABILITY UNTIL THE FED DOES WHAT IT HAS TO DO THE FED RAISED SHORTTERM RATES IN EARLY FEBRUARY THE COLLAPSE IN PRICES BRIEFLY TOOK THE YIELD ON THE 6 1/4 30YEAR BOND TO 681 ITS HIGHEST LEVEL SINCE JUNE THE YIELD ON THE 10YEAR NOTE REACHED A 12MONTH HIGH FOR SHORTTERM YIELDS ONE HAS TO LOOK EVEN FURTHER BACK THE YIELD ON THE NEW TWOYEAR NOTE REACHED 482 ITS LOFTIEST PERCH SINCE EARLY DECEMBER 1992 PRICES MANAGED TO CREEP BACK FROM THEIR WORST LEVELS HOWEVER THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1 1/2 POINTS OR 15 FOR A BOND WITH 1000 FACE VALUE TO YIELD 677 UP FROM 665 ON MONDAY THE BULK OF YESTERDAY'S SELLING WAS CAUSED BY TROUBLESOME DATA ON INFLATION CONTAINED IN A NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT RELEASED AT MIDMORNING THE ASSOCIATION SAID ITS PRICESPAID INDEX JUMPED TO 67 IN FEBRUARY FROM 598 IN JANUARY THE OVERALL NAPM INDEX SLIPPED TO 566 IN FEBRUARY FROM 577 DEPRESSED BY HARSH WINTER WEATHER ALSO TROUBLING FOR THE BOND MARKET WAS A RISE IN THE NAPM EMPLOYMENT INDEX TO AN ALMOST FIVEYEAR HIGH OF 50 FROM 483 THE STORY OF THE DAY WAS THE PRICE INDEX AND A LITTLE BIT THE EMPLOYMENT INDEX SAID MR BRIGGS A READING ABOVE 50 ON THE PRICE INDEX REFLECTS RISING PRICES THE HIGHER THE INDEX LEVEL THE FASTER THE INCREASE IN PRICES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN EARLIER IN THE DAY THE COMMERCE DEPARTMENT REVISED FOURTHQUARTER GROSSDOMESTICPRODUCT GROWTH UP SHARPLY TO A 75 RATE FROM AN ORIGINALLY REPORTED 59 PACE ANALYSTS SAID THE FOURTHQUARTER DATA INDICATE THE ECONOMY BEGAN THE CURRENT YEAR WITH A GREAT DEAL OF MOMENTUM IN ADDITION TO THE ECONOMIC NEWS MARKET WATCHERS ALSO REPORTED WIDESPREAD NERVOUSNESS OVER WEAKNESS IN OTHER MAJOR BOND MARKETS AROUND THE WORLD MANY OF THOSE DECLINES WERE ACTUALLY SPARKED BY CONCERNS OVER WHAT WAS HAPPENING WITH US INTEREST RATES PARTICIPANTS ALSO SAY THE MARKET HAS REACHED A STAGE WHERE SELLING ONLY BREEDS MORE SELLING ESPECIALLY BY TRADERS WHO END UP MAKING SHORT SALES OF TREASURYS AS A HEDGE AGAINST LOSSES ON HOLDINGS OF OTHER SECURITIES A TRADER EXECUTES A SHORT SALE BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK AT A LATER DATE AT A LOWER PRICE AND POCKETING THE DIFFERENCE BY THE TIME THE NAPM REPORT WAS RELEASED YESTERDAY THE MARKET HAD ALREADY GIVEN UP A PORTION OF THE GAINS IT EKED OUT MONDAY AND ONCE TRADERS AND INVESTORS SAW THE DETAILS OF THE REPORT THE FLOOR FELL OUT FROM UNDERNEATH THE BOND MARKET ALTHOUGH TRADERS REPORTED SOME LIQUIDATION OF HOLDINGS BY INSTITUTIONAL INVESTORS THE BULK OF THE SELLING WAS BY DEALERS AND SPECULATIVE ACCOUNTS THERE WAS MORE PROFESSIONAL LEVERAGED SELLING THAN PORTFOLIO SELLING DEUTSCHE BANK'S MR BRIGGS SAID MOST MONEY MANAGERS HAVE PULLED THEIR FLAK JACKETS UP OVER THEIR HEADS AND ARE KEEPING OUT OF THE FRAY EVEN THOUGH YIELDS ARE SUBSTANTIALLY HIGHER THAN THEY WERE JUST A FEW WEEKS AGO THE VIOLENT NATURE OF THE SELLOFF HAS LEFT THEM PARALYZED IT'S LIKE BAMBI STUCK IN THE HEADLIGHTS SAID STEVE WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BA SECURITIES INC YOU LOOK AT THE MARKET AND ASK HAVE WE PASSED APPROPRIATE LEVELS' AND THE ANSWER IS PROBABLY YES BUT WE COULD GO DOWN A LOT HARDER BEFORE WE COME BACK TO WHAT VALUE SHOULD BE JOHN KALLIS A PORTFOLIO MANAGER AT STATE STREET RESEARCH & MANAGEMENT CO AGREED THE BOND MARKET HAS PROBABLY GONE FAR ENOUGH BUT THERE'S NOTHING TO STOP IT FROM GOING FURTHER HE SAID THE NOTION OF RELATIVE VALUE HAS TAKEN A BACK SEAT TO EMOTION AND THAT REQUIRES A DIFFERENT WAY OF APPROACHING THE MARKET ACCORDING TO PAUL DENOON A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT IN THIS MARKET I DON'T SET LEVELS WHERE I'M GOING TO BUY OR SELL MR DENOON SAID IT'S A BEAR MARKET THAT HAS NO RANGES HE SAID MR DENOON ADDED THAT THE MARKET IS BEHAVING THE SAME ON THE WAY DOWN THAT IT DID ON THE WAY UP WHEN BONDS WERE RALLYING TO RECORD LOW YIELDS YOU HAD THIS SPIRALLING EFFECT WHERE HIGHER PRICES DRAGGED IN MORE BUYING HE SAID UNTIL THE BOND MARKET HAS DISPLAYED CONVINCING SIGNS OF STABILIZING PORTFOLIO MANAGERS SAID THEY PREFERRED TO REMAIN ON THE SIDELINES EVEN IF IT MEANS MISSING OUT ON A PORTION OF A REBOUND IT REALLY HAS TO STABILIZE AND BUILD A BASE MR DENOON SAID PRICES IN THE SECONDARY JUNKBOND MARKET FELL NEARLY TWO POINTS IN ACTIVE TRADING THAT REPRESENTS 20 FOR A BOND WITH A 1000 FACE VALUE HARDEST HIT WERE RECENTLY ISSUED JUNK BONDS PRICED WITH AGGRESSIVE 8 TO 9 YIELDS TRADERS SAID THE BLOOD WAS HEAVY ONE TRADER SAID LAST WEEK'S ISSUE BY THE BEAZER HOMES USA INC UNIT OF HANSON PLC PRICED AT PAR TO YIELD 9 FELL 15 POINTS TO 965 FOR A 955 YIELD ACCORDING TO ONE TRADER INCLUDING THAT DECLINE THE PRICE OF THE BONDS SINCE THEIR PRICING IS DOWN 35 POINTS OTHER BONDS WITH YIELDS IN THE 10 TO 11 AREA WERE LESS AFFECTED THE INVESTMENTGRADE MARKET ALSO WAS HIT THE DIFFERENCE BETWEEN YIELDS OF TREASURYS AND NONCALLABLE BONDS OR THE SPREAD WIDENED BY 003005 PERCENTAGE POINT YESTERDAY HOWEVER SPREADS ON CALLABLE PAPER WERE UNCHANGED AS INTEREST RATES RISE IT BECOMES LESS LIKELY THAT DEBT WILL BE CALLED AND REFINANCED THE NEWISSUE MARKET REMAINED MOSTLY QUIET DURING THE DAY'S TURMOIL ALTHOUGH NEARLY 2 BILLION OF DEBT WAS OFFERED INCLUDING REPUBLIC NATIONAL BANK OF NEW YORK'S 1 BILLION OFFERING OF ONEYEAR BANK NOTES FEDERALAGENCY DEBT AND A 425 MILLION JUNKBOND OFFERING FROM BALLY'S PARK PLACE FUNDING INC A UNIT OF BALLY MANUFACTURING CORP REPUBLIC NATIONAL IS A UNIT OF REPUBLIC NEW YORK CORP DESPITE PLUNGING MUNI PRICES AND RISING YIELDS ISSUERS PROCEEDED WITH COMPETITIVE SALES TOTALING MORE THAN 600 MILLION TRADERS SAID MUNIS REGISTERED MAXIMUM LOSSES IN THE AREA OF 1 1/2 POINT IN SECONDARY DEALINGS PRIMARILY ON NEWS OF THE JUMP IN THE PURCHASERS' INDEX AMID ALL THE SELLING THE YIELD FOR THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 525 OF 2019 BONDS CLIMBED TO ABOUT 61 FROM 597 MONDAY AFTERNOON MUNI SPECIALISTS SAID AS FOR THE PRIMARY MARKET ONE OF THE NEW ISSUES WAS GEORGIA'S 2159 MILLION SERIES 1994B IMPROVEMENT BONDS A MERRILL LYNCH & CO GROUP WON THE SECURITIES WITH A BID SETTING THE NET INTEREST COST AT 51165 AND GAVE THEM YIELDS RANGING FROM 36 IN 1996 TO 545 IN 2013 AND 2014 DESPITE AN UNSOLD BALANCE OF 572 MILLION YESTERDAY AFTERNOON A MERRILL LYNCH UNDERWRITING SPECIALIST SAID WE'RE PRETTY PLEASED CONSIDERING THE WEAKNESS OF THE MARKET HE ATTRIBUTED DEMAND LARGELY TO THE BONDS' NONCALLABLE STATUS AND HE NOTED A HEARTY APPETITE FOR BONDS WITH MATURITIES IN 10 YEARS OR LONGER IN OTHER PRIMARY MARKET ACTION MERRILL LYNCH WON THE NORFOLK VA 1827 MILLION SERIES 1994 IMPROVEMENT AND REFUNDING BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 51422 PAINEWEBBER INC WON NEW YORK STATE'S 2241 MILLION GENERAL OBLIGATION IMPROVEMENT BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 515791 9403020076 940302 INTERNATIONAL FRANCE REVISES PENAL CODE TO COVER MODERN CRIMES PARIS AP IN FRANCE'S BIGGEST LEGAL SHAKEUP IN NEARLY TWO CENTURIES A NEW PENAL CODE TOOK EFFECT TUESDAY THAT TAKES INTO ACCOUNT MODERN ILLS TWO DECADES IN THE MAKING THE NEW CODE IS THE MOST EXTENSIVE OVERHAUL YET OF THE LEGAL GUIDELINES SET DOWN BY EMPEROR NAPOLEON BONAPARTE IN 1810 ITS 650 ARTICLES IN FOUR VOLUMES GENERALLY TOUGHEN JAIL TERMS FOR THE FIRST TIME IT MAKES COMPANIES AND NONPROFIT GROUPS ACCOUNTABLE FOR ENDANGERING OTHERS THE CODE HAS PROVISIONS FOR TERRORISM ENVIRONMENTAL TERRORISM INCLUDING WILLFUL POLLUTION VANDALISM COMPUTER FRAUD AND CHILD PORNOGRAPHY THE NEW CODE ALSO PROVIDES FOR ALTERNATIVE FORMS OF PUNISHMENT SUCH AS PROPERTY SEIZURE OR COMMUNITY SERVICE NOT EVERYONE THINKS THE NEW LAW IS A STEP FORWARD THE RESEAU VOLTAIRE A GROUP ADVOCATING FREEDOM OF EXPRESSION CRITICIZED AN ARTICLE THAT PROHIBITS THE MANUFACTURE TRANSPORT DISTRIBUTION OR DIFFUSION OF VIOLENT OR PORNOGRAPHIC MATERIAL THAT COULD BE SEEN BY MINORS THE GROUP SAYS THE NEW LAW HINDERS SEXUAL EDUCATION AND AIDS PREVENTION CAMPAIGNS AND MARKS THE RETURN OF TIGHT CENSORSHIP 9403020075 940302 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AUSTRIA FINLAND AND SWEDEN EACH AGREED WITH THE EUROPEAN UNION ON TERMS FOR JOINING THE 12MEMBER TRADE BLOC TALKS WITH NORWAY WERE SUSPENDED FOR A WEEK BECAUSE OF AN IMPASSE ON FISHING RIGHTS TO MOVE CLOSER TO A UNIFIED EUROPE AND EXPAND ITS POWER ON THE WORLD STAGE THE EU HAS SET A JAN 1 TARGET TO ADMIT THE FOUR WEALTHY COUNTRIES AS MEMBERS THE FIRST NEW ONES SINCE SPAIN AND PORTUGAL JOINED IN 1986 THE MEMBERSHIP ACCORDS REQUIRE RATIFICATION IN REFERENDUMS IN EACH OF THE CANDIDATE NATIONS FINLAND OVERCAME PROBLEMS ABOUT COMPETITION WITH SOME OF ITS PRODUCTS SWEDEN RESOLVED THE ISSUE OF FINANCES AND THE EU COMPROMISED ON AUSTRIA'S RESTRICTIONS ON TRUCK TRAFFIC ON ITS ALPINE ROADS RUSSIA PLANS TO SELL OFF AS MANY INDUSTRIAL GIANTS AS POSSIBLE BEFORE PRIVATIZATION VOUCHERS EXPIRE JUNE 30 THE GOVERNMENT HAS PUT MORE THAN 8500 STATEOWNED COMPANIES INTO PRIVATE HANDS SINCE THE PROGRAM BEGAN MORE THAN TWO YEARS AGO BUT 100 AUCTIONS IN THE PAST YEAR HAVE ATTRACTED ONLY ABOUT 70 OF THE VOUCHERS RUSSIANS RECEIVED TO BID ON SHARES IN MIDSIZE AND BIG ENTERPRISES AMONG ABOUT 50 FIRMS COMING UP FOR AUCTION ARE FOUR BIG ENERGY COMPANIES WHEN THE VOUCHER PHASE ENDS THE FOCUS WILL SHIFT TO ENCOURAGE INVESTMENT ESPECIALLY FOREIGN PARTICIPATION IN PRIVATIZED FIRMS AND THEIR RESTRUCTURING TO ATTRACT TRAVELERS WHO ARE BYPASSING EGYPT BECAUSE OF ATTACKS BY MILITANT MUSLIMS THE EGYPTIAN MUSEUM IN CAIRO REOPENED A DISPLAY OF ROYAL MUMMIES THAT HAVE BEEN STORED SINCE 1980 THE 11 MUMMIES ABOUT 3500 YEARS OLD INCLUDE RAMSES II WHO RULED EGYPT FOR 67 YEARS AND QUEENS OF PHARAOHS MUMMIFICATION A RITUAL BURIAL PRACTICE BEGAN WITH ANCIENT EGYPTIANS WHO BELIEVED IN AN AFTERLIFE IN THIS LIFE MILITANTS SEEKING TO MAKE EGYPT AN ISLAMIC STATE HAVE ATTACKED COMMERCE AND TOURISM A KEY SOURCE OF REVENUE HAS DROPPED 70 SINCE 1992 LEGISLATORS IN GEORGIA APPROVED ITS ENTRY INTO THE COMMONWEALTH OF INDEPENDENT STATES A LOOSE ALLIANCE OF FORMER SOVIET REPUBLICS DOMINATED BY RUSSIA THE ISSUE WAS DIVISIVE IN GEORGIA WHERE MANY PEOPLE BLAME RUSSIANS FOR MUCH OF THE VIOLENCE INVOLVING ETHNIC SEPARATISTS THE SOCIAL TURMOIL AND THE ECONOMIC HARDSHIP THAT HAVE PLAGUED THE SOUTHERN REPUBLIC SINCE IT BECAME INDEPENDENT IN 1991 ASIDE FROM THE THREE BALTIC REPUBLICS THAT LEFT THE USSR BEFORE IT COLLAPSED MOLDOVA IS THE ONLY FORMER SOVIET STATE THAT HASN'T JOINED THE CIS SOME MEMBERS HAVE DEFENSE AND TRADE AGREEMENTS BUT ATTEMPTS TO FORGE A TIGHTER UNION HAVE FAILED AFTER TWO YEARS OF SLUGGISHNESS REAL ESTATE PRICES IN THE PARIS REGION STABILIZED AT END OF 1993 A FRENCH NOTARIES GROUP SAID PRICES IN THE SECOND HALF SLIPPED 09 FROM THE FIRST SIX MONTHS BRAKING FROM A 58 DROP IN THE FIRST HALF THE VALUE OF DEALS EDGED UP 08 LAST YEAR RECOVERING WITH A 3 SECONDHALF INCREASE AFTER A 1 DROP IN THE FIRST HALF THE SECTOR'S WOES SINCE 1991 HAVE HURT BANKS INSURERS AND CONTRACTORS BUT EXECUTIVES BELIEVE THE SLUMP MAY HAVE BOTTOMED OUT AFTER A PHILIPPINE GOVERNMENT STUDY FOUND THAT SOME BLOOD FOR TRANSFUSIONS CONTAINED SYPHILIS HEPATITIS B AND POSSIBLY HIV THE VIRUS THAT CAUSES AIDS HEALTH SECRETARY JUAN FLAVIER CALLED FOR LEGISLATION TO BAN FILIPINOS FROM SELLING THEIR BLOOD DOCTORS SAID AS MUCH AS 70 OF BLOOD SUPPLIES IN HOSPITALS AND COMMERCIAL BLOOD BANKS CAME FROM MOSTLY POOR PEOPLE FOR A FEE MR FLAVIER ALSO URGED REQUIRING HOSPITALS TO USE ONLY BLOOD FROM VOLUNTEER DONORS FOR TRANSFUSIONS THE STUDY FOUND THAT ABOUT 4 OF BLOOD SAMPLES FROM STATE AND PRIVATE BLOOD BANKS WERE INFECTED THE DANISH PARLIAMENT PASSED LEGISLATION THAT LOOSENS CURBS ON SHOPPING HOURS THE ISSUE IS FILTERING THROUGH EUROPE EAGER TO STIMULATE SAGGING ECONOMIES STORES IN DENMARK NOW MUST CLOSE BY 6 PM ON MOST WEEKDAYS AND MAY OPERATE SATURDAYS ONLY IN THE MORNING EXCEPT ON THE FIRST WEEKEND EACH MONTH THE NEW LAW ALLOWS STAYING OPEN UNTIL 8 PM WEEKDAYS AND 5 PM TWO SATURDAYS A MONTH THE MEASURE ALSO SIMPLIFIES RULES THAT ALLOWED LONGER HOURS FOR A FEW SHOPS SUCH AS GAS STATIONS TOBACCONISTS BAKERIES AND FLORISTS THESE RETAILERS NOW MAY SELL A LARGER RANGE OF GOODS THOUGH RESTRICTIONS STILL APPLY TO ALCOHOLIC BEVERAGE SALES AND SMALL SHOPS OUTSIDE CITIES MAY OPEN ON SUNDAYS TO SELL NECESSITIES AS A CONCESSION TO TRADE UNIONS WHICH TRADITIONALLY OPPOSE EASED CURBS THE LAW PROVIDES FOR A SPECIAL COMPLAINTS COMMISSION TO CONSIDER ANY ALLEGED ABUSES COAL MINERS IN RUSSIA HELD A ONEDAY WARNING STRIKE AT 239 OF THE COUNTRY'S 299 PITS TO PRESS UNION DEMANDS FOR GOVERNMENT SUBSIDIES AND PAYMENTS OWED TO THE INDUSTRY VIETNAM LAST YEAR PRODUCED 60000 TONS OF CASHEWS BECOMING THE WORLD'S THIRDLARGEST PRODUCER OF THE NUTS AFTER INDIA AND BRAZIL VIETNAMESE ENTERPRISES PROCESSED 6000 TONS OF CASHEWS FOR EXPORT A 400 JUMP FROM A YEAR EARLIER 9403020074 940302 ENTERPRISE SOFTWARE MATCHES THIEF AND PRINTS JUST LIKE THE MOVIES BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL THIEVES BEWARE SIMPSON KALISHER IS OUT TO FINGER YOU WHILE MOVIE GUMSHOES QUICKLY NAB THIEVES BY CHECKING THEIR FINGERPRINTS WITH THE FEDERAL BUREAU OF INVESTIGATION IN REAL LIFE GETTING FBI HELP ON A ROUTINE CASE CAN TAKE MONTHS AND EVEN IF THE PRINTS ARE ON FILE IF THEIR OWNER HAS BEEN ARRESTED FOR A SERIOUS CRIME THE AGENCY HAS TROUBLE MATCHING THE PARTIAL OR SMUDGED PRINTS FOUND AT MOST CRIME SCENES MR KALISHER PRESIDENT OF FRANKLIN SERVICE SYSTEMS ROXBURY CONN HAS DEVELOPED SOME PERSONAL COMPUTER SOFTWARE THAT CAN QUICKLY IDENTIFY IMPERFECT PRINTS TOM HOPPER AN FBI FINGERPRINT EXPERT SAYS WORD OF THE KALISHER SYSTEM IS SPREADING LIKE A RELIGION EIGHT POLICE DEPARTMENTS NATIONWIDE ARE USING IT POLICE EXPERTS SAY FRANKLIN SERVICE SYSTEMS OFTEN OUTPERFORMS THE FBI WHICH STILL FILES PRINTS UNDER A SYSTEM DEVELOPED BY GREAT BRITAIN'S SCOTLAND YARD NEARLY A CENTURY AGO WITH THE HELP OF ROGER BROOKS A FORENSIC EXPERT WITH THE DANBURY CONN POLICE DEPARTMENT MR KALISHER ADDED 23 CODES TO THE 16 IN THE FBI SYSTEM BY IDENTIFYING MORE DETAILS THE SYSTEM CALLED FELON/FIND'R CAN MATCH MORE PRINTS THAN THE FBI SAYS MR BROOKS AND BECAUSE IT CAN PICK UP MORE DETAILS FELON/FIND'R ALSO CAN BETTER IDENTIFY SMUDGED OR PARTIAL PRINTS DAVID GRIEVE EDITOR OF THE JOURNAL OF FORENSIC IDENTIFICATION SAYS IT'S AMAZING THAT A CIVILIAN HAS PRODUCED A VIABLE SYSTEM FOR IDENTIFYING SMUDGED OR PARTIAL PRINTS SUCH A SYSTEM HAS ELUDED MORE SKILLED FORENSIC SPECIALISTS OVER THE PAST TWO DECADES IT'S RARE THAT A LOCAL POLICE DEPARTMENT WILL CATCH A CULPRIT BASED SOLELY ON PRINTS LEFT AT A CRIME SCENE THE FBI CONCEDES IT GETS SO MANY REQUESTS TO MATCH PRINTS THAT ONLY MAJOR CRIMES LIKE MURDER AND KIDNAPPING GET TOP PRIORITY WE'RE SWAMPED WITH UP TO 50000 REQUESTS A DAY SAYS SPOKESMAN JOHN KUNDTS AN FBI SPECIAL AGENT THE TWOYEAROLD KALISHER SYSTEM CAN MATCH A NEW PRINT WITH THOSE FILED ON A LOCAL POLICE DEPARTMENT'S PC IN ANYWHERE FROM A MINUTE TO SEVERAL HOURS MR KALISHER A PROFESSIONAL PHOTOGRAPHER WHOSE WORK HANGS IN THE MUSEUM OF MODERN ART IN MANHATTAN GOT INTO THE FINGERPRINT IDENTIFICATION BUSINESS BY CHANCE HE BEGAN FRANKLIN SYSTEMS IN 1988 TO HELP CORPORATE PHOTO LIBRARIES AND CAMERA BUFFS CATALOG AND CROSSINDEX THEIR PICTURES BY TYPE ON COMPUTER AS HE HAD DONE WITH 30000 PHOTOGRAPHS HE HAD TAKEN OVER DECADES WHEN HE OFFERED TO HELP DANBURY POLICE CATALOG PHOTOS OF FELONS THE SAME WAY THREE YEARS AGO MR BROOKS BEGGED HIM INSTEAD TO TACKLE WHAT HE CALLED THE BLACK HOLE OF POLICE WORK FINGERPRINT FILES IT'S LIKE CATALOGING SNOWFLAKES MR BROOKS SAYS WITH ALL THOSE LOOPS AND WHORLS DEVELOPING A NEW CLASSIFICATION SYSTEM WAS A NIGHTMARE PUTTING IT ON A COMPUTER WAS LIKE UNWINDING A KNOTTED STRING KITE BALL OVER AND OVER AGAIN SAYS MR KALISHER THE FBI CLASSIFIES PRINTS ACCORDING TO EIGHT PATTERNS BASED ON TYPES OF ARCHES LOOPS AND WHORLS OR CIRCLES THE AGENCY IDENTIFIES THE 10 FINGERS OF TWO HANDS IN A SINGLE FORMULA OF LETTERS AND NUMBERS MR KALISHER'S MORE DETAILED SYSTEM CAN DO WHAT THE FBI'S SYSTEM CAN'T FOR EXAMPLE IT COMPUTES HOW MANY TINY LINES EMERGE FROM A LOOP THE WHORL'S SHAPE AS AN ELIPSE OVAL OR TEARDROP AND HOW FAR THE PRINT'S BASE IS FROM ITS CORE FOR A FELON WHOSE PRINTS ARE MAINLY LOOPS FOR EXAMPLE THE FBI FORMULA IS LIROOO/MIROOI BUT IN THE KALISHER SYSTEM EACH FINGER IS CODED THE RIGHT THUMB ALONE IS 0117AO17SPACESPACESPACEF THE F SHOWS THAT THE LOOP CORE IS 12 MILLIMETERS FROM THE BASELINE HELPING POLICE CATCH CROOKS WHO LEAVE FINGERPRINTS THEN BECAME ONE OF MY GOALS WHEN I FOUND OUT WHAT LOCAL POLICE REALLY NEEDED MR KALISHER SAYS THE FINGERPRINT SOFTWARE IS THE BIGGEST PART OF THE FRANKLIN SERVICE SYSTEMS BUSINESS VENEZUELA AND PANAMA BOUGHT THE SOFTWARE SAYS THE US JUSTICE DEPARTMENT A DEPARTMENT UNIT PLANS TO INSTALL IT IN COSTA RICA GUATEMALA EL SALVADOR AND THE DOMINICAN REPUBLIC AND THE US POST OFFICE SAYS IT IS CONSIDERING USING IT IN SEVERAL CITIES THE 5000 SYSTEM HAS SOME DRAWBACKS POLICE MUST CREATE AND ENTER FINGERPRINT FILES WHICH CAN TAKE MONTHS AND PRODUCES ONLY AN INVENTORY OF LOCAL PRINTS STILL POLICE SAY MOST PETTY CRIMINALS ARE LOCALS AND THAT THE KALISHER SYSTEM HELPS RELIEVE THE FRUSTRATION OF WAITING FOR AN FBI RESPONSE ON PETTYCRIME CASES BOWIE TEXAS A COMMUNITY OF 50000 USED THE SYSTEM TO TRACK DOWN A THIEF WHO HIT A DISABLED TRAINING CENTER AND FIVE CHURCHES EARLY LAST YEAR THE CULPRIT LEFT ONLY TWO RIGHTHAND FINGERPRINTS AND THEY WEREN'T VERY CLEAR SAYS BOWIE POLICE LT DAVID SCRUGGS THE FBI OR THE STATE FORENSIC LAB IN AUSTIN WOULD HAVE TAKEN TOO LONG SAYS LT SCRUGGS AND IN THE END WOULDN'T HAVE HELPED ANYWAY SINCE THE MAN HAD NEVER BEEN ARRESTED FOR A SERIOUS CRIME THE DEPARTMENT RAN THE TWO PRINTS THROUGH THE KALISHER SYSTEM WHICH HAS THE FINGERPRINTS OF 5500 PEOPLE ARRESTED LOCALLY SINCE 1989 WITHIN SEVERAL MINUTES IT SINGLED OUT A 19YEAROLD LOCAL HANDYMAN WHO HAD BEEN ARRESTED IN BOWIE ON A TRAFFIC VIOLATION THE SUSPECT CONFESSED TO THE BURGLARIES AND WAS SENTENCED TO 10 YEARS IN STATE PRISON OFFICIALS OF LAKELAND FLA WHICH HAS JUST BOUGHT THE SYSTEM BELIEVE IT WILL HELP IDENTIFY THREE TIMES AS MANY SUSPECTS AS IT DOES THROUGH STATE AND FBI FINGERPRINT FILES SAYS HERMAN MOULDEN A LAKELAND POLICE SUPERVISOR WE'RE GOING TO FILL MORE JAIL CELLS HE ADDS 9403020073 940302 SARA LEE PLANS MEXICO VENTURE CHICAGO SARA LEE CORP EXPANDING ITS PRESENCE IN MEXICO AGREED TO A JOINTVENTURE INVESTMENT IN THE KIR ALIMENTOS MEATPROCESSING UNIT OF AXA SA DE CV OF MONTERREY MEXICO TERMS WEREN'T DISCLOSED THE VENTURE IN WHICH SARA LEE AND AXA WOULD EACH OWN 50 WOULD MAKE AND DISTRIBUTE VARIOUS SARA LEE PROCESSED MEATS A SARA LEE SPOKESWOMAN SAID KIR MAKES AND MARKETS HOT DOGS LUNCHEON MEATS SAUSAGES AND HAMS IN MEXICO SARA LEE ALREADY DISTRIBUTES BAKED GOODS AS WELL AS ITS L'EGGS HANES AND PLAYTEX HOSIERY AND INTIMATE APPAREL IN MEXICO 9403020072 940302 SMALL STOCK FOCUS STOCK PRICES SLIDE AS SIGNS OF INFLATION PROMPT MAJOR SELLOFF IN BOND MARKET BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK NEW SIGNS OF INFLATION SENT THE BOND MARKET TUMBLING PUSHING SMALLCOMPANY STOCK PRICES LOWER ALTHOUGH THEY RECOVERED FROM THEIR WEAKEST LEVELS ON NASDAQ THE COMPOSITE INDEX FINISHED 386 OR 049 LOWER AT 78864 ABOVE ITS WORST LEVEL OF 78345 BOTH MEASUREMENTS FELL FOLLOWING THE RELEASE OF THE FEBRUARY NATIONAL PURCHASING MANAGERS REPORT THAT SHOWED A RISE IN ITS PRICE AND EMPLOYMENT INDEXES BONDS SANK ON CONCERNS THAT INFLATION LOOMS ON THE HORIZON AND THE FEDERAL RESERVE WILL MOVE TO TIGHTEN SHORTTERM RATES AGAIN THE LONG BOND PLUNGED 1 1/2 POINTS DRIVING ITS YIELD UP TO 677 FINANCIAL ISSUES WERE AMONG THE WEAKEST FALLING AS RATES ROSE WVF FINANCIAL FELL 1 1/2 TO 14 3/4 INDEPENDENCE BANCORP OF PERKASIE PA LOST 7/8 TO 36 AND PROVIDENT BANCORP OF CINCINNATI FELL 5/8 TO 28 3/8 OTHER MARKET LOSERS INCLUDED BIOCIRCUITS A SUNNYVALE CALIF DEVELOPER OF MEDICALDIAGNOSTIC PRODUCTS THAT PLUNGED 1 5/8 OR NEARLY 41 TO 2 3/8 THE COMPANY SAID IT WILL REFORMULATE THE TEST METHOD IN ITS PROPRIETARY ASSAY CARTRIDGE REMOVING A MOLECULAR MEMBRANE AND REPLACING IT WITH A NEW FLUORESCENCEGENERATING SUBSTRATE IN ADDITION BIOCIRCUITS SAID IT WILL TAKE A ONETIME CHARGE OF 992000 IN THE FIRST QUARTER FOR MEMBRANEBASED EQUIPMENT AND INVENTORY NEWS THAT MEMBERS OF THE UNITED STEELWORKERS WENT ON STRIKE AT WHEELINGPITTSBURGH'S PLANTS IN THREE STATES SENT THE COMPANY'S STOCK DOWN 1 TO 17 1/4 ON THE NEW YORK STOCK EXCHANGE THE COMPANY IS THE NATION'S EIGHTHLARGEST INTEGRATEDSTEEL PRODUCER DISAPPOINTING FOURTHQUARTER EARNINGS BROUGHT SHOWBIZ PIZZA TIME DOWN 1 1/2 TO 13 1/2 THE IRVING TEXAS RESTAURANT OPERATOR SAID ITS LOSS FOR THE PERIOD WAS FOUR CENTS A SHARE COMPARED WITH NET OF 17 CENTS A YEAR EARLIER CLASS A SHARES OF HYDE ATHLETIC INDUSTRIES TUMBLED 1 1/4 TO 6 WHILE CLASS B SHARES DROPPED 5/8 TO 6 THE PEABODY MASS CONCERN REPORTED THAT ITS FOURTHQUARTER EARNINGS FELL TO FOUR CENTS A SHARE FROM 36 CENTS A YEAR EARLIER BIG BOARDTRADED HORIZON HEALTHCARE ALBUQUERQUE NM FELL 2 TO 23 3/4 ANALYSTS CITED A MAILING THEY RECEIVED FROM A COMPANY UNION CONTAINING A MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH REPORT OUTLINING A RESTRICTIVE AGREEMENT HORIZON REACHED PREVIOUSLY WITH THE STATE AGENCY IN ORDER TO RECEIVE NURSINGHOME LICENSES IN MASSACHUSETTS NEW ISSUE INFOSOFT INTERNATIONAL OF BOSTON SOARED TO 19 3/4 FROM ITS 15 OFFERING PRICE THE COMPANY MAKES SOFTWARE TOOLS NORTON MCNAUGHTON BASED IN NEW YORK CLIMBED TO 15 3/4 ABOVE ITS OFFERING PRICE OF 14 AFTER MONDAY'S CLOSE THE DESIGNER OF WOMEN'S CLOTHING SAID PROCEEDS WILL BE USED TO REPAY DEBT AND REDEEM PREFERRED STOCK ON THE AMERICAN STOCK EXCHANGE ANDREA ELECTRONICS JUMPED 1 1/8 TO 23 1/4 THE LONG ISLAND CITY NY INTERCOMMUNICATIONS COMPANY SAID ITS FOURTHQUARTER NET INCOME WAS ONE CENT A DILUTED SHARE COMPARED WITH A LOSS OF 11 CENTS ALSO ON THE AMEX CHAMPION ENTERPRISES ROSE 1 1/4 TO 23 1/2 ON IMPROVED FOURTHQUARTER EARNINGS OF 32 CENTS A SHARE UP FROM 15 CENTS A YEAR EARLIER STARSIGHT TELECAST A FREMONT CALIF DESIGNER AND MARKETER OF AN ONSCREEN INTERACTIVE TELEVISION GUIDE AND VCR CONTROL SERVICE GAINED 1 1/4 TO 11 1/2 SHARES OF THE COMPANY REPORTEDLY ADVANCED AFTER SMITH BARNEY SHEARSON REPEATED ITS VENTURE BUY RATING SAYING SELLING IN THE STOCK WAS AN OVERREACTION TO THE COLLAPSE OF THE TELECOMMUNICATIONSBELL ATLANTIC TRANSACTION AND RATE ROLLBACKS IN THE CABLE INDUSTRY THOUGH STOCKS ARE FOLLOWING THE BOND MARKET I DON'T HAVE THE SENSE OF ANY IMPENDING DOOM SAID RICHARD BRUNO HEAD OF NASDAQ TRADING AT PAINEWEBBER THERE'S NO PANIC OR CONCERTED SELLING AND THERE'S STILL FAIRLY GOOD INTEREST ON THE BUY SIDE INDEED GAIL DUDACK A MARKET STRATEGIST AT SG WARBURG SAID THE LONGERTERM OUTLOOK FOR SMALLCAPITALIZATION STOCKS REMAINS POSITIVE THIS IS BASICALLY A PRETTY HEALTHY CORRECTION SHE SAID WE HAD UNUSUALLY LOW VOLATILITY IN 1993 AND NOW THIS IS RELATIVELY SHARP VOLATILITY IN COMPARISON BUT I DON'T THINK THE END OF THE BULL MARKET IS HERE THIS IS THE FIRST REAL CORRECTION WE'VE HAD SINCE 1990 AND IT FEELS A LITTLE STRANGE SHE ADDED THAT SMALLCAP STOCKS NOT ONLY HAVE BETTER PRODUCTIVITY THAN THE FORTUNE 500 COMPANIES BUT THEY PROVIDE PRODUCTIVITY TO THE FORTUNE 500 SMALLER STOCKS ARE WELLPOSITIONED BECAUSE THEY'RE MEAN AND LEAN NOT FAT AND LAZY 9403020071 940302 TEXAS JOURNAL WINNERS & LOSERS RAMBO RANGERS TEXAS GAME WARDENS HAVE SET ASIDE 300000 TO BUY 550 NEW GLOCK SEMIAUTOMATIC PISTOLS KARI DZIEDZIC THE FORMER EMPLOYEE OF NORMAN GREEN OWNER OF THE DALLAS STARS OBTAINED AN OUTOFCOURT SETTLEMENT OF HER SEXUALHARASSMENT SUIT AGAINST HIM TERMS WEREN'T DISCLOSED PC FACTORY WORKERS COMPAQ COMPUTER PLANS TO ADD SEVEN MANUFACTURING LINES TO ITS HOUSTON PLANT SHIFTING SOME PRODUCTION TO THE US FROM SINGAPORE JOE CHAGRA JR A STATE JUDGE RULED THAT THE FORMER EL PASO ATTORNEY WHO CONFESSED TO CONSPIRACY CHARGES IN THE 1979 SLAYING OF A FEDERAL JUDGE CAN'T HAVE HIS LAW LICENSE BACK RADIO SHACK THE FORT WORTH ELECTRONICS RETAILER APOLOGIZED FOR SELLING A PINBALL GAME THAT INCLUDED AN IMAGE RESEMBLING A SWASTIKA BEAUMONT'S FINEST THE POLICE DEPARTMENT WILL INSTALL MORE THAN 40000 OF SURVEILLANCE EQUIPMENT AT ITS HEADQUARTERS TO COMBAT DRUG THEFT FROM THE EVIDENCE ROOM 9403020069 940302 MACY MAY RECEIVE TWOWEEK EXTENSION ON REGROUPING PLAN NEW YORK RH MACY & CO UNDER PRESSURE TO PRODUCE A DRAFT OF A REORGANIZATION PLAN IS EXPECTED TO GET A TWOWEEK EXTENSION TO MARCH 23 BY WHICH IT MUST FILE AN OUTLINED PLAN WITH A COURTAPPOINTED MEDIATOR PEOPLE CLOSE TO THE BANKRUPTCY TALKS CONFIRMED A REPORT IN WOMEN'S WEAR DAILY YESTERDAY THAT THE NEW DATE STEMMED FROM AN AGREEMENT BETWEEN MACY AND THE COURTAPPOINTED MEDIATOR CYRUS R VANCE AND HIS LAW FIRM SIMPSON THACHER & BARTLETT THE MEDIATOR'S COUNSEL FEDERAL BANKRUPTCY JUDGE BURTON R LIFLAND ORIGINALLY HAD GIVEN MACY A MARCH 8 DATE TO FILE A TERM SHEET SPECIFYING THE PRINCIPAL TERMS AND CONDITIONS OF A REORGANIZATION PLAN THAT ORDER ALSO SAID MR VANCE MAY REQUIRE CREDITORS AND OTHER INTERESTED PARTIES THAT WISH TO SUBMIT A REORGANIZATION PLAN TO ALSO SUBMIT TERM SHEETS ROBERT MILLER AN ATTORNEY WITH BERLACK ISRAELS & LIBERMAN REPRESENTING MACY'S BONDHOLDERS COMMITTEE SAID HE IS ACTIVELY CONSIDERING PROPOSING A TERM SHEET ON BEHALF OF BONDHOLDERS HE ADDED THOUGH THE JUDGE'S ORDER IS UNCLEAR AS TO WHETHER INTERESTED PARTIES NEED TO BE ASKED BY MR VANCE TO SUBMIT A PLAN OR WHETHER THEY CAN DO IT VOLUNTARILY A SPOKESWOMAN FOR FEDERATED DEPARTMENT STORES INC A MACY'S CREDITOR THAT WANTS TO MERGE WITH THE RETAILER SAID IT HASN'T YET DECIDED WHEN IT WOULD FILE A VOLUNTARY TERM SHEET 9403020068 940302 BUSINESS BRIEF GENERAL ACCIDENT PLC EARNINGS HIT RECORD IN 1993 DIVIDEND IS INCREASED 28 GENERAL ACCIDENT PLC SWUNG TO A RECORD HIGH PRETAX PROFIT OF 2949 MILLION 43822 MILLION IN 1993 FROM A YEARAGO LOSS OF 293 MILLION AFTER A STRONG PERFORMANCE IN THE FOURTH QUARTER AND ANNOUNCED A 28 RISE IN ITS DIVIDEND TO 275 PENCE THE LONDON INSURER SAID PROFIT IN THE FOURTH QUARTER TOTALED 884 MILLION ITS WORLDWIDE UNDERWRITING DEFICIT FELL BY MORE THAN HALF TO 229 MILLION IN 1993 COMPARED WITH A 5101 MILLION LOSS THE YEAR BEFORE IN THE UK IT RECORDED AN UNDERWRITING PROFIT OF 597 MILLION A SHARP TURNAROUND FROM THE 1752 MILLION LOSS IN THE YEAR BEFORE 9403020067 940302 BUSINESS BRIEF PENN CENTRAL CORP INSURANCE CONCERN TO CHANGE NAME TO AMERICAN PREMIER PENN CENTRAL CORP SAID IT WILL CHANGE ITS NAME TO AMERICAN PREMIER UNDERWRITERS INC EFFECTIVE MARCH 25 THE CINCINNATI COMPANY SAID ITS NAME NO LONGER RELATES TO ITS CURRENT BUSINESS ACTIVITIES WHICH ARE ALMOST ENTIRELY IN PROPERTY AND CASUALTY INSURANCE THE CORPORATE NAME CHANGE WILL NOT AFFECT THE COMPANY'S INSURANCE OPERATING UNITS WHICH WILL CONTINUE TO OPERATE UNDER THEIR OWN NAMES PENN CENTRAL SAID ALSO EFFECTIVE MARCH 28 PENN CENTRAL'S COMMON STOCK WHICH TRADES ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL PC WILL BEGIN TRADING UNDER A NEW SYMBOL WHICH HAS NOT YET BEEN DETERMINED 9403020066 940302 RULE OF LAW PRIVATE PROPERTY RIGHTS VS PUBLIC WORKS BY STEVEN J EAGLE WHEN FLORENCE DOLAN NEEDED A PERMIT TO REPLACE HER PLUMBING SUPPLY STORE WITH ONE ALMOST TWICE AS LARGE CITY OFFICIALS IN TIGARD ORE WERE HAPPY TO OBLIGE BUT AT A CONSIDERABLE PRICE IN RETURN FOR PERMISSION TO ENLARGE HER BUSINESS MRS DOLAN WOULD HAVE TO DEDICATE SOME 10 OF HER 17 ACRE PARCEL FOR LONGPLANNED IMPROVEMENTS TO THE CITY'S FLOOD CONTROL SYSTEM AND FOR CONSTRUCTION OF A PEDESTRIAN/BICYCLE PATHWAY ALTHOUGH HER EXPANDED BUSINESS WOULD NESTLE COMFORTABLY WITHIN EXISTING ZONING LAWS AN ADDITIONAL ACTION AREA OVERLAY ZONE ORDINANCE SANCTIONED THE CITY'S DEMAND THAT MRS DOLAN CONTRIBUTE TO NEEDED PUBLIC FACILITIES LAST YEAR THE OREGON SUPREME COURT INTERPRETED THE CITY'S ACTION AS CONSISTENT WITH THE FEDERAL CONSTITUTION THE US SUPREME COURT HAS AGREED TO REVIEW DOLAN V CITY OF TIGARD AND WILL HEAR ORAL ARGUMENT ON MARCH 23 THIS MAY WELL BE THE COURT'S MOST IMPORTANT PROPERTYRIGHTS CASE SINCE 1987 THE COURT COULD USE DOLAN TO DECIDE THE EXTENT TO WHICH MUNICIPALITIES CAN IMPOSE EXACTIONS ON DEVELOPMENT MORE IMPORTANT THE CASE COULD HELP CLARIFY WHEN GOVERNMENT REGULATION OF PRIVATE PROPERTY IS PERMISSIBLE AND WHEN IT BECOMES A REGULATORY TAKING REQUIRING COMPENSATION FINANCIALLY STRAPPED MUNICIPALITIES INCREASINGLY ARE FUNDING IMPROVEMENTS THROUGH EXACTIONS ON DEVELOPMENT INSTEAD OF THROUGH TAXES DEMANDS FOR ONSITE IMPROVEMENTS BY DEVELOPERS SUCH AS ROADS WITHIN SUBDIVISIONS RARELY PRESENT PROBLEMS EXACTIONS FOR DIRECTLY RELATED OFFSITE IMPROVEMENTS SUCH AS THE WIDENING OF A SIDE ROAD BETWEEN A HIGHWAY AND A NEW REGIONAL SHOPPING CENTER OFTEN ARE REASONABLE HOWEVER CITIES FROM BOSTON TO SAN FRANCISCO ARE IMPOSING EXACTIONS ON DEVELOPERS TO FUND SUCH GENERAL PUBLIC PURPOSES AS PUBLIC HOUSING OR JOB TRAINING CENTERS COMPREHENSIVE DATA ARE ALMOST IMPOSSIBLE TO OBTAIN SINCE EXACTIONS WEAR MANY LABELS SUCH AS CONNECTION LINKAGE AND INSPECTION FEES OFFICIALS OFTEN CLAIM NOT TO IMPOSE CHARGES AT ALL AND INSTEAD HOLD UP PROJECTS INFORMALLY UNTIL DEVELOPERS MAKE VOLUNTARY CONTRIBUTIONS OF FUNDS OR SERVICES DOLAN V CITY OF TIGARD ALSO GIVES THE SUPREME COURT AN OPPORTUNITY TO UNTANGLE THE COLLISION OF TWO BASIC PRINCIPLES OF AMERICAN LAW ON ONE HAND THE STATE HAS AN EXTENSIVE RIGHT REFERRED TO AS POLICE POWER TO PROTECT THE PUBLIC HEALTH SAFETY AND WELFARE ON THE OTHER THE STATE HAS A DUTY UNDER THE FIFTH AMENDMENT TAKINGS CLAUSE NOT TO TAKE PRIVATE PROPERTY EXCEPT UPON JUST COMPENSATION AS THE COURT NOTED IN 1960 IN ARMSTRONG V US A PRIMARY PURPOSE OF THE TAKINGS CLAUSE IS TO BAR GOVERNMENT FROM FORCING SOME PEOPLE ALONE TO BEAR PUBLIC BURDENS WHICH IN ALL FAIRNESS AND JUSTICE SHOULD BE BORNE BY THE PUBLIC AS A WHOLE MRS DOLAN DOES NOT DISPUTE THAT FLOOD CONTROL AND TRANSPORTATION PROJECTS ARE LEGITIMATE GOVERNMENTAL CONCERNS SHE DISPUTES THAT SHE SHOULD BE SINGLED OUT TO PAY FOR THEM THE COURT'S TAKINGS JURISPRUDENCE ALTHOUGH UNCLEAR REFLECTS TWO FUNDAMENTAL CONCEPTS FIRST IS THE NOTION CRYSTALLIZED IN 1938 IN US V CAROLENE PRODUCTS CO THAT GOVERNMENT ACTIONS AFFECTING ECONOMIC RIGHTS WILL BE LESS CLOSELY SCRUTINIZED BY THE COURTS THAN THOSE AFFECTING FUNDAMENTAL RIGHTS SUCH AS SPEECH AND VOTING OR THE RIGHTS OF MINORITIES SECOND IS THE NOTION THAT JUDICIAL DEFERENCE IS NOT UNLIMITED AS JUSTICE HOLMES DECLARED IN 1922 IN PENNSYLVANIA COAL CO V MAHON IF REGULATION GOES TOO FAR IT WILL BE RECOGNIZED AS A TAKING HOW FAR IS TOO FAR NEVER HAS BEEN SPELLED OUT IN ITS MOST RECENT TAKINGS DECISION IN 1992 THE COURT HELD IN LUCAS V SOUTH CAROLINA COASTAL COUNCIL THAT REGULATIONS THAT PROHIBIT ALL ECONOMICALLY BENEFICIAL USE OF LAND MUST BE IMPLICIT IN THE STATE'S LAW OF PROPERTY AND NUISANCE SOUTH CAROLINA COULDN'T WIPE OUT DAVID LUCAS'S INVESTMENT IN HIS BEACHFRONT LOTS BY CHARACTERIZING ITS DEVELOPMENT PROHIBITION AS FLOOD PREVENTION RATHER THAN TOURISM ENHANCEMENT IT WOULD HAVE TO SHOW THAT AT THE TIME MR LUCAS PURCHASED THE LOTS HE WAS PRECLUDED FROM DEVELOPING THEM UNDER ESTABLISHED PROPERTY AND NUISANCE LAW NOWHERE HOWEVER DID THE COURT'S OPINION BY JUSTICE ANTONIN SCALIA EXPLAIN THE ESSENTIAL NATURE OF CONSTITUTIONALLY PROTECTED PROPERTY RIGHTS OR MORE PRACTICALLY WHY COMPLETE DEPRIVATIONS SHOULD BE JUDGED BY A HIGHER CONSTITUTIONAL STANDARD THAN SAY 95 DEPRIVATIONS WHERE OFFICIALS REMEMBER TO LEAVE PROPERTY OWNERS A MODICUM OF VALUE THE GOVERNING LAW REMAINS PENN CENTRAL TRANSPORTATION CO V CITY OF NEW YORK 1978 THERE JUSTICE WILLIAM BRENNAN USED A BALANCING TEST TO SUSTAIN THE CITY'S PRESERVATION OF THE BEAUXARTS FACADE OF GRAND CENTRAL TERMINAL BY FORBIDDING THE RAILROAD FROM ERECTING AN OFFICE BUILDING ABOVE IT GIVEN THE AD HOC NATURE OF TAKINGS DETERMINATIONS HE REASONED THE RAILROAD'S INVESTMENTBACKED EXPECTATIONS OF OWNING A TRAIN STATION WERE NOT UNDULY AFFECTED BY THE RESTRICTION THE PRINCIPAL CLOUD UPON JUDICIAL DEFERENCE TO GOVERNMENTAL ACTIONS AFFECTING PRIVATE PROPERTY IS THE COURT'S 1987 DECISION IN NOLLAN V CALIFORNIA COASTAL COMMISSION IT IS THE SCOPE OF ITS NOLLAN HOLDING THAT THE SUPREME COURT HAS UNDERTAKEN TO DECIDE IN THE DOLAN CASE THE NOLLAN FAMILY WANTED TO ENLARGE ITS HOUSE BETWEEN A HIGHWAY AND THE PACIFIC OCEAN AND ALSO BETWEEN TWO BEACHFRONT PARKS UNDER ITS AUTHORITY TO BLOCK CONSTRUCTION INTERFERING WITH OCEAN VIEWS FROM HIGHWAYS THE COMMISSION REFUSED TO ALLOW THE NOLLANS TO EXPAND UNLESS THEY AGREED TO ALLOW THE PUBLIC TO WALK BEHIND THEIR HOUSE FROM ONE PARK TO THE OTHER THE COURT FOUND IT IMPOSSIBLE TO UNDERSTAND HOW ITS ACTION FURTHERED THE COMMISSION'S MISSION SINCE THE COMMISSION'S DEMAND COULD NOT HAVE FURTHERED ITS LEGITIMATE GOAL JUSTICE SCALIA WROTE THE COURT DID NOT HAVE TO DECIDE THE SCOPE OF THE ESSENTIAL NEXUS THAT MUST EXIST BETWEEN GOVERNMENTAL GOALS AND MEANS THE COURT AGREED TO HEAR DOLAN V CITY OF TIGARD ON PRECISELY THIS UNRESOLVED ISSUE IT COULD AGREE WITH THE CITY THAT THE EXACTION NEED BE ONLY REASONABLY RELATED TO A LEGITIMATE GOVERNMENTAL PURPOSE IN THAT EVENT THE CITY'S ASSERTION THAT EXPANSION OF THE DOLAN STORE WILL ADD TO SURFACE RUNOFF AND TRAFFIC CONGESTION PROBABLY WILL SUFFICE TO SUPPORT ITS EXACTIONS HOWEVER IF THE JUSTICES AGREE WITH MRS DOLAN THAT UNDER AN ESSENTIAL NEXUS THE MEANS AND ENDS OF REGULATIONS MUST BE SUBSTANTIALLY RELATED THEN COURTS IN THE FUTURE WILL HAVE TO EXAMINE REGULATIONS AND EXACTIONS MORE CAREFULLY THE LIKELY RESULT WOULD BE MORE COMPENSATION FOR OWNERS AND FEWER REGULATIONS SOME ARGUE THAT INCREASED PROTECTION FOR PRIVATE PROPERTY RIGHTS WOULD DISCOURAGE VITAL PUBLIC WORKS OTHERS SAY THAT COMPENSATION WOULD FORCE MUNICIPALITIES TO TAKE INTO ACCOUNT THE COSTS OF IMPROVEMENTS AS WELL AS THE BENEFITS MRS DOLAN ARGUES ECHOING ARMSTRONG THAT SHE SHOULD NOT BE FORCED TO BEAR PUBLIC BURDENS WHICH IN ALL FAIRNESS AND JUSTICE SHOULD BE BORNE BY THE PUBLIC AS A WHOLE MR EAGLE IS A PROFESSOR OF LAW AT GEORGE MASON UNIVERSITY IN ARLINGTON VA 9403020065 940302 TWO TELECOMMUNICATIONS BILLS CLEAR HOUSE SUBCOMMITTEE WITH RAPID SPEED BY MARK H ANDERSON AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH BREATHTAKING SPEED THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE UNANIMOUSLY APPROVED TWO BILLS DESIGNED TO GIVE THE REGIONAL BELL TELEPHONE COMPANIES GREATER FREEDOM WHILE ENCOURAGING COMPETITION IN LOCAL PHONE SERVICE THE RAPID APPROVAL THE BILLS WERE SENT TO THE FULL ENERGY AND COMMERCE COMMITTEE AFTER ONLY AN AFTERNOON OF DEBATE SUGGESTS THE BILLS MAY STRIKE THE NECESSARY BALANCE BETWEEN THE POWERFUL INTERESTS INVOLVED AND ARE NOW ON A FAST TRACK THROUGH CONGRESS THE BILLS WOULD INFLUENCE HOW LOCAL PHONE COMPANIES LONGDISTANCE CARRIERS CABLE OPERATORS AND OTHERS SPEND BILLIONS OF DOLLARS TO BUILD IMPORTANT STRETCHES OF THE INFORMATION SUPERHIGHWAY ONE MEASURE INTRODUCED BY ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS D TEXAS WOULD EVENTUALLY ALLOW THE SEVEN REGIONAL BELL COMPANIES TO PROVIDE LONGDISTANCE SERVICES AND MANUFACTURE TELECOMMUNICATIONS EQUIPMENT THE COMPANIES CURRENTLY ARE BANNED FROM THOSE MARKETS UNDER THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM THE ECONOMIC AND COMMERCIAL LAW PANEL OF THE JUDICIARY COMMITTEE WHICH SHARES JURISDICTION ON THE BILL IS EXPECTED TO VOTE ON THE MEASURE TODAY THE OTHER BILL WAS INTRODUCED BY REP EDWARD MARKEY D MASS CHAIRMAN OF THE TELECOMMUNICATIONS SUBCOMMITTEE ALONG WITH REP JACK FIELDS OF TEXAS THE PANEL'S RANKING REPUBLICAN THAT MEASURE IS DESIGNED TO OPEN THE LOCAL TELEPHONE NETWORKS TO COMPETITION FROM CABLE TELEVISION COMPANIES AND OTHERS WHILE PERMITTING PHONE COMPANIES TO PROVIDE CABLE TV SERVICE THIS IS THE MOST SIGNIFICANT CHANGE IN COMMUNICATIONS POLICY IN 60 YEARS MR MARKEY SAID THIS LEGISLATION WILL PAVE THE WAY FOR THE MUCHANTICIPATED INFORMATION SUPERHIGHWAY THE FULL HOUSE COULD VOTE ON THE PACKAGE BY SUMMER NO AMENDMENTS WERE OFFERED TO THE BROOKSDINGELL BILL THE LONGDISTANCE COMPANIES APPARENTLY FAILED TO PERSUADE LAWMAKERS TO DROP A PROVISION THAT WOULD LET THE REGIONAL BELL COMPANIES BUY LONGDISTANCE SERVICE IN BULK FROM SUCH CARRIERS AS AMERICAN TELEPHONE & TELEGRAPH CO OR MCI COMMUNICATIONS CORP AND RESELL IT TO BUSINESSES AND RESIDENTIAL CUSTOMERS THE LONGDISTANCE COMPANIES ALSO HAVE BEEN FIGHTING A PROVISION THAT WOULD ALLOW THE REGIONAL BELLS TO OFFER INSTATE LONGDISTANCE SERVICE BUT THAT TOO REMAINED IN THE BILL WHILE THE BELL COMPANIES WERE DELIGHTED THAT THE BROOKSDINGELL COMPROMISE SAILED THROUGH THE SUBCOMMITTEE SOME EXPRESSED DEEP CONCERNS ABOUT THE MARKEYFIELDS BILL PARTICULARLY A PROVISION THAT WOULD GENERALLY FREEZE RATES FOR BASIC RESIDENTIAL PHONE SERVICE WE BELIEVE THE FREEZE IS UNCONSTITUTIONAL AND EVENTUALLY WILL BE REMOVED FROM THE BILL A SPOKESMAN FOR ATLANTABASED BELLSOUTH CORP SAID MUCH OF THE DEBATE ON THE MARKEYFIELDS BILL CENTERED ON AN AMENDMENT OFFERED BY REP BILLY TAUZIN D LA ON BEHALF OF TELEVISION AND RADIO BROADCASTERS THE AMENDMENT WHICH REP TAUZIN ULTIMATELY WITHDREW WOULD HAVE GIVEN BROADCASTERS WIDE LATITUDE TO USE THEIR ASSIGNED SPECTRUM FOR A VARIETY OF NONTRADITIONAL USES FOR INSTANCE IT WOULD LET THEM USE DIGITAL COMPRESSION TECHNOLOGY TO SPLIT THEIR SPECTRUM INTO SEVERAL NEW CHANNELS FOR SOME TIME BROADCASTERS HAVE BEEN PUSHING FOR MORE FLEXIBLE USE OF THEIR SPECTRUM THEY SEE STRONG POSSIBILITIES IN TRANSMITTING DATA AND PERHAPS EVEN MOBILE PHONE CALLS SUPPORT FOR THE AMENDMENT WITHERED AFTER REP DINGELL ATTACKED IT IN A SERIES OF POINTED QUESTIONS THAT SUGGESTED BROADCASTERS WERE BEING GREEDY MR DINGELL HOWEVER LEFT THE DOOR OPEN FOR BROADCASTERS TO MODIFY THEIR PROPOSAL THEY ARE CERTAIN TO DO SO WHEN THE BILL REACHES THE FULL ENERGY AND COMMERCE COMMITTEE 9403020064 940302 MARKETING & MEDIA SNAPPLE'S FOURTH QUARTER FAILS TO ROUSE INVESTORS VALLEY STREAM NY SNAPPLE BEVERAGE CORP REPORTED SHARP INCREASES IN FOURTHQUARTER NET INCOME REVENUE AND CASE SALES BUT ITS STOCK STILL SLID APPARENTLY IN REACTION TO COCACOLA CO'S NEW LINE OF COMPETING FRUIT DRINKS IN NASDAQ TRADING YESTERDAY SNAPPLE SHARES FELL 175 TO 27125 A SHARE SNAPPLE WHICH WENT PUBLIC IN DECEMBER 1992 POSTED A PROFIT OF 20 MILLION OR 17 CENTS A SHARE COMPARED WITH A PRO FORMA 43 MILLION OR FOUR CENTS A SHARE IN THE YEARAGO QUARTER THE PRO FORMA NUMBERS REFLECT THE EFFECTS OF SEVERAL TRANSACTIONS INCLUDING THE DECEMBER 1992 EQUITY OFFERING AND THE JUNE 1993 ACQUISITION OF MR NATURAL INC AS IF THEY HAD OCCURRED ON JAN 1 1992 AND JULY 1 1992 RESPECTIVELY THE LATEST QUARTERLY FIGURES INCLUDE A ONETIME TAX BENEFIT OF 81 MILLION OR SEVEN CENTS A SHARE BECAUSE OF THE COMPANY'S ADOPTION OF CERTAIN PROVISIONS OF THE 1993 TAX LEGISLATION REVENUE DOUBLED TO 1177 MILLION FROM A PRO FORMA 582 MILLION SALES VOLUME TOTALED 125 MILLION CASES FROM SIX MILLION CASES THE YEAR BEFORE SNAPPLE WHICH HAS DOMINATED THE MARKET NICHE FOR BOTTLED ICE TEA FRUITFLAVORED DRINKS AND OTHER SPECIALTY BEVERAGES HAS WATCHED COMPETITORS ENTER THE FASTGROWING MARKET 9403020063 940302 LETTERS TO THE EDITOR LET THE RUSSIAN IMPERIAL BEAR SLEEP READING IRVING KRISTOL'S UNABASHED BRIEF ON BEHALF OF A RENEWED RUSSIAN EMPIRE RUSSIA'S DESTINY EDITORIAL PAGE FEB 11 I WAS REMINDED OF MR KRISTOL'S APPEARANCE AS A SPEAKER AT A MEMORABLE MEETING OF THE COMMITTEE FOR THE FREE WORLD IN WASHINGTON DC IN APRIL 1990 TO THE DISMAY OF MOST OF THE AUDIENCE MR KRISTOL ARGUED AGAINST THE WEST'S SUPPORT OF LITHUANIA AND THE OTHER REPUBLICS IN THEIR STRUGGLE FOR DEMOCRACY AND INDEPENDENCE IRONICALLY IT WAS A RUSSIAN FORMER PRISONER OF CONSCIENCE VLADIMIR BUKOVSKY WHO LED THE CHARGE AGAINST MR KRISTOL THAT DAY ARGUING ELOQUENTLY FOR WESTERN SUPPORT OF THE NONRUSSIAN INDEPENDENCE MOVEMENTS THE FIRESTORM OF OBJECTIONS TO MR KRISTOL FROM THE AUDIENCE ENDED WHEN MIDGE DECTER BROUGHT THE SESSION TO A CLOSE REMARKING THAT I THINK IRVING HAS EMBARRASSED HIMSELF ENOUGH TODAY ALTHOUGH MUCH IN THE WORLD HAS CHANGED MR KRISTOL'S POSITION HAS NOT IT CAN BE REDUCED TO THE THESIS THAT WHILE THE NEW RUSSIA MAY BE NONDEMOCRATIC AUTHORITARIAN AND IMPERIALIST IT DESERVES SUPPORT BECAUSE IT IS RUSSIAN AND BECAUSE RUSSIANS HAVE A VISION OF THEMSELVES RULING THE NEAR ABROAD THOSE FORMER REPUBLICS THAT WERE BROUGHT TO NEAR RUIN IN THE LAST ROUND OF RUSSIAN IMPERIALISM WILL IN MR KRISTOL'S WORDS JUST HAVE TO LIVE WITH IT WHEN WILL RUSSIA'S SUPPORTERS INCLUDING MR KRISTOL LEARN THAT PERPETUATING THE NOTION OF RUSSIA'S IMPERIALIST DESTINY HARMS RUSSIA MOST OF ALL AS LONG AS AN EMPIRE SERVES AS RUSSIA'S ECONOMIC SUPPORT SYSTEM AND PRETEXT FOR AUTHORITARIAN CONTROL THE ISSUES OF DEMOCRACY AND INTERNAL REFORM THAT CRIPPLE RUSSIA WILL NEVER BE ADDRESSED CONSISTENT WITH THIS POSITION MR KRISTOL DISAVOWS BOTH AID TO MARKETORIENTED ECONOMIC REFORM IN RUSSIA AND SUPPORT FOR THE FLEDGLING DEMOCRACIES ON RUSSIA'S PERIPHERY IT WOULD BE DIFFICULT TO CONCEIVE OF A POLICY MORE INJURIOUS TO THE WELFARE OF EASTERN EUROPE AND THE FORMER SOVIET UNION THAN THAT ESPOUSED BY MR KRISTOL THE BENIGN ASSESSMENT BY MR KRISTOL OF RUSSIA'S STRATEGIC IMPORTANCE TO GLOBAL SECURITY IS AS STARTLING AND COMPELLING A CALL FOR AMERICAN ISOLATIONISM AND DISENGAGEMENT AS WE HAVE SEEN SINCE THE DAYS LEADING UP TO WORLD WAR II SUGGESTING THAT RUSSIAN NATIONALISM HAS A LIMITED IMPERIALIST DIMENSION IS TO BELITTLE WHAT HAS BEEN THE ONLY CONSISTENT THREAD THROUGH SUCCESSIVE CZARIST COMMUNIST AND POSTCOMMUNIST REGIMES NAMELY ETHNIC AND GEOPOLITICAL IMPERIALISM THE PROCESS OF CONTAINING RUSSIAN IMPERIALISM HAS BEEN A MAJOR FOCUS OF WESTERN DIPLOMATIC AND STRATEGIC DOCTRINE SINCE WELL BEFORE THE FIRST WORLD WAR THROUGH THE NAZIUSSR NONAGGRESSION PACT TO POTSDAM THE BERLIN AIRLIFT NATO THE CUBAN MISSILE CRISIS AND BEYOND THE NOTION THAT RUSSIAN IMPERIALISM FOCUSES EXCLUSIVELY ON THE NEAR ABROAD WOULD BE A CRUEL IRONY TO NATIONS IN THE BALTIC SOUTHEAST ASIA THE MIDEAST CENTRAL EUROPE AFRICA AND THE AMERICAS THAT HAVE EITHER BEEN DIRECTLY SUBJUGATED BY OR FACED TERRORISM OR THREAT FROM SOVIET CLIENT STATES NEIGHBORS PROXIES OR FUNDED INSURGENCES THE DANGER OF THIS COMPLACENT VIEW IS THAT IT NOT ONLY FEEDS THOSE WHO WOULD DESTROY WESTERN DEFENSE CAPACITY IN THE US AND AMONG HER ALLIES INCLUDING LIBERALS SOCIALISTS AND NEOCONSERVATIVES HERE IN CANADA BUT IT PROVIDES AN INTELLECTUAL UNDERPINNING FOR THE KIND OF DISENGAGEMENT THE HISTORIC NATO FAILURE TO EXTEND FULL MEMBERSHIP TO EASTERN EUROPEAN SUPPLICANTS UNDERLINES AS MOTHER RUSSIA STOUTLY INDICATES ITS DETERMINATION TO DEFEND ETHNIC RUSSIANS IN THE CIS AS RUSSIAN UNITS OPEN FIRE ON A JAPANESE FISHING TRAWLER IN DISPUTED ASIAN WATERS AS RUSSIAN SCIENTISTS WHO BELIEVE RUSSIA HAS NOT FULLY COMPLIED WITH GAS WARFARE AGREEMENTS ARE PUT ON TRIAL IT IS A SIGNAL OF SERIOUS AND DANGEROUS WEAKNESS TO HAVE DENIED NATO MEMBERSHIP TO NATIONS THAT HAVE EMBRACED DEMOCRACY AND FREEDOM AT SERIOUS ECONOMIC COST TO THEIR PEOPLE AND SHORTTERM COMMERCIAL PROSPECTS TO DENY THEM MEMBERSHIP IN AN ALLIANCE THAT PROVIDED MUTUAL PROTECTION FROM INVASION IS TO ADMIT THAT ANY FRESH STRAIN OF RUSSIAN IMPERIALISM CAN TAKE AS A GIVEN THE NEW DEMOCRACIES OF EASTERN EUROPE THEIR FORMER CLIENT STATES THE BALTICS AND THE OLD SOVIET UNION CONSTITUENCY THE GENIUS OF THE COMMON STAND TAKEN BY PRESIDENT REAGAN PRIME MINISTER THATCHER PRESIDENT KOHL AND PRIME MINISTER MULRONEY ALONG WITH OTHER NATO LEADERSHIP WAS THAT IT ERECTED CLEAR HURDLES BOTH STRATEGIC AND ECONOMIC TO CONTINUED SOVIET MILITARISM AN ENLIGHTENED AND OFTEN INSPIRED SOVIET LEADERSHIP MADE THE RIGHT CHOICES THE NOTION THAT REMOVING ALL HURDLES AND DIMINISHING WESTERN PREPAREDNESS WOULD SOMEHOW INSPIRE A RUSSIAN DEPARTURE FROM ALL THE FORCES OF RUSSIAN HISTORY IS NOT ONLY COUNTERINTUITIVE BUT WELL BEYOND THE REALM OF ANY REAL WORLD ASSESSMENT OF THE FORCES NOW AT PLAY IN CENTRAL EUROPE OR RUSSIAN POLITICS THIS IS NOT ABOUT THE RUSSIAN PEOPLE OR ANY RELATED DEMONOLOGY THE PEOPLE OF RUSSIA ARE AS HUMANE DECENT AND NONAGGRESSIVE AS ANY IT IS ABOUT THE DYNAMICS OF RUSSIAN POLITICS THE EARLY AND FRAGILE STAGE OF THEIR DEMOCRATIC DEVELOPMENT AND THE NEED TO FIND EXTERNAL ENEMIES WHEN INTERNAL DISSATISFACTION CONTINUES TO MOUNT I AM SENDING MR KRISTOL'S ARTICLE TO MY RELATIVES AND FRIENDS IN PRAGUE SO THAT THEY MAY READ ABOUT ONE VIEWPOINT CURRENT IN THE US THEY WILL BE INTERESTED TO HEAR THAT AS RUSSIA IS REVAMPING ITS ECONOMY IT WILL MOVE TO CONFER SOMETHING LIKE PROTECTORATE' STATUS ON THOSE 14 OTHER NEW NATIONS THE FAMOUS LORD RUNCIMAN WENT TO PRAGUE IN THE SUMMER OF 1938 TO HELP DETERMINE BRITISH POLICY TOWARD CZECHOSLOVAKIA THIS CULMINATED IN THE MUNICH AGREEMENT MY RELATIVES AND FRIENDS IN PRAGUE WILL BE EXHILARATED THAT THEY WILL BE SPARED A VISIT BY A LATTERDAY LORD RUNCIMAN AS MR KRISTOL HAS ALREADY DECIDED THAT A PROTECTORATE IS AGAIN LOOMING ON THE HORIZON IT SEEMS CLEAR THAT MOST OF THE PEOPLE IN THESE 14 COUNTRIES WOULD MUCH RATHER FLOUNDER WITH THEIR OWN PROBLEMS THAN HAVE THEM RESOLVED THROUGH DOMINATING FORCE FROM EITHER EAST OR WEST PEOPLE SUCH AS THOSE IN THE BALTIC STATES AND THE UKRAINE HAVE BRILLIANT HISTORICAL PASTS AS INDEPENDENT ENTITIES WHEN THE RUSSIANS WERE LIVING UNDER THE MOST PRIMITIVE CONDITIONS THE WELLCIVILIZED POLES HELPED DEFEAT THE TURKS IN THE SECOND SIEGE OF VIENNA IN THE 17TH CENTURY AND THEREBY SPARED WESTERN EUROPE FROM POSSIBLE TURKISH DOMINATION AS FOR THE MUSLIM LANDS THE BRILLIANCE OF THEIR CIVILIZATION PRIOR TO AND EVEN AFTER THE DEVASTATION WROUGHT BY GENGHIS KHAN ARE MATTERS OF HISTORICAL RECORD THIS IS NO TIME FOR OUR COUNTRY TO ENCOURAGE THE CONTINUATION OF AN ENFORCED FORM OF COLONIALISM THAT HAS RUN ITS FULL HISTORICAL COURSE AS FOR THE RUSSIANS WHO HAVE IMMIGRATED AS MASTERS IN THESE OCCUPIED COUNTRIES THEY HAVE LONG BEEN WORRIED ABOUT THEIR MINORITY STATUS MADE INCREASINGLY SO BY THE HIGH BIRTH RATES OF THE INDIGENOUS POPULATIONS THEIR BEST ROLE WOULD SEEM TO LIE IN BECOMING CONSTRUCTIVE CITIZENS IN THEIR NEW HOMES IN THE AMERICAN FASHION 9403020062 940302 LEISURE & ARTS ON DISK NEW TUNES OLD TOUCHES BY JIM FUSILLI AUGUST AND EVERYTHING AFTER DCG RECORDS BY COUNTING CROWS IS A GLORIOUS RECORDING OF LEAN INSIGHTFUL SONGS IN THE TRADITION OF BOB DYLAN VAN MORRISON AND THEIR SUCCESSORS THE DISK'S 11 TRACKS ARE ALIVE WITH VIVID AND OCCASIONALLY STARTLING IMAGES BY ADAM DURITZ WHO DOUBLES AS THE QUINTET'S LEAD VOCALIST AMID A MOOD THAT'S FOREBODING BUT NEVER GLUM DURITZ A KEEN OBSERVER REPORTS ON MODERN LOVE VIA TALES OF ONE MAN'S ALIENATION HEARTACHE AND DREAMS RAINING IN BALTIMORE GHOST TRAIN AND PERFECT BLUE BUILDING ARE COMPACT IMPRESSIONISTIC CHILLING NOVELLAS WITH A CHORUS IN TIME AND TIME AGAIN WHICH IS REMINISCENT OF THE STONES' WILD HORSES FOR ITS SOUND AND SENSE OF YEARNING DURITZ CRIES I WANTED TO SEE YOU WALKING AWAY FROM ME/WITHOUT THE SENSATION OF YOU LEAVING ME ALONE IN MR JONES ONE OF THE FEW UPTEMPO NUMBERS ON THE DISK DURITZ WONDERS IF THE ADULATION STARDOM BRINGS MIGHT CURE HIS LONELINESS WHEN MR JONES DURITZ'S ALTER EGO ADMITS THAT ALL HE WANTS IS TO BE A LITTLE MORE FUNKY DURITZ REPLIES WHEN EVERYBODY LOVES YOU SON THAT'S ABOUT AS FUNKY AS YOU CAN BE AND THE SENTIMENT THAT RUNS THROUGH EACH SONG IS FOUND IN OMAHA IT'S THE HEART THAT MATTERS MORE IF DURITZ'S LYRICS ARE AS INTERESTING TO LISTEN TO AS THEY ARE TO READ AND THEY ARE IT'S BECAUSE OF HIS SENSITIVE AND PASSIONATE SINGING AND THE BAND'S MOODY CUNNING SUPPORT CAPTURED BY TBONE BURNETT'S DELICATE PRODUCTION CHARLIE GILLINGHAM DROPS IN APPROPRIATE FILLS ON PIANO ORGAN AND ACCORDION AND DRUMMER STEVE BOWMAN KNOWS WHEN TO EASE OFF AND LET TENSION BUILD IN THE VOID WHEN THE BAND KICKS IN HARD ON THE CLOSING NUMBER MURDER OF ONE ARE YOU HAPPY WHEN YOU'RE SLEEPING DOES HE KEEP YOU SAFE AND WARM DURITZ ASKS IT PLAYS WITH AN EXUBERANCE THAT SAYS IT KNOWS IT HAS JUST TOPPED OFF A MASTERPIECE MIRROR BLUE CAPITOL BY RICHARD THOMPSON EXTENDS THE SINGERSONGWRITER'S STRING OF EXCELLENT RECORDINGS AS ON 1991'S RUMOR AND SIGH AND ALL THE WAY BACK TO HIS FAIRPORT CONVENTION DAYS THOMPSON MELDS ROCK FOLK AND GAELIC INFLUENCES TO UNDERSCORE OMINOUS STORIES THAT FALL SOMEWHERE BETWEEN SLICEOFLIFE AND A NICHOLAS RAY FILM HIS PROTAGONISTS ARE ALWAYS OUT OF STEP THEIR WOMEN EITHER ANGELIC OR A DISAPPOINTMENT AND EVERYONE IS MOMENTS AWAY FROM BECOMING VICTIMIZED BY PRECISELY WHAT THEY ARE TRYING HARDEST TO AVOID I CAN'T WAKE UP TO SAVE MY LIFE BEGINS WITH IN MY NIGHTMARE EVERYTHING'S WRONG/I'M WAITING FOR LOVE BUT YOU COME ALONG THE PULSING EASY THERE STEADY NOW PRESENTS A REVENGEMINDED MAN LOST IN GNAWING THOUGHT SHE DIDN'T HAVE THE DECENCY TO SWEEP AWAY WHAT'S LEFT OF ME GIVEN THE SURROUNDING DARKNESS THOMPSON'S LOVE SONGS ARE ESPECIALLY POIGNANT IN KING OF BOHEMIA HE WRITES AND THERE IS NO REST FOR THE ONES GOD BLESSED/AND HE BLESSED YOU BEST OF ALL AN EXTRAORDINARY GUITARIST THOMPSON SURROUNDS HIMSELF WITH COMPARABLE SIDEMEN ON MIRROR BLUE INCLUDING PETE THOMAS ON DRUMS AND PERCUSSION AND JERRY SCHEFF ON BASS A WIDE RANGE OF CELTIC INSTRUMENTS ENRICH SEVERAL TRACKS AND TOM MCCONVILLE CONTRIBUTES A TOUCHING PERFORMANCE ON FIDDLE ON THE LOVELY BEESWING IT'S ALWAYS A PLEASURE TO HEAR THE EXTRAORDINARY VOICE OF ALISON KRAUSS THE YOUNG COUNTRY AND BLUEGRASS LEGEND AND ON HER LATEST PROJECT SHE JOINS THE COX FAMILY FIVE VOCALISTS WHO ARE UP TO HER HIGH STANDARDS THE RESULTING RECORDING I KNOW WHO HOLDS TOMORROW ROUNDER IS AN EARNEST AND ENGAGING COLLECTION OF 12 TRADITIONAL AND CONTEMPORARY GOSPEL TUNES KRAUSS AND SISTERS EVELYN LYNN AND SUZANNE COX TAKE TURNS ON LEAD VOCAL ON SONGS SUCH AS LORETTA LYNN'S EVERYBODY WANTS TO GO TO HEAVEN AND DAVID MARSHALL'S NEVER WILL GIVE UP BROTHER SIDNEY COX HANDLES LEAD VOCAL ON PAUL SIMON'S LOVES ME LIKE A ROCK WHILE PATRIARCH WILLARD TAKES OVER ON FAR SIDE OF JORDAN PIANIST GARY SMITH AND GUITARIST RON BLOCK A MEMBER OF KRAUSS'S GROUP UNION STATION CONTRIBUTE TO THE RINGING BACKING TRACKS AND KRAUSS AND ANDREA ZONN OFFER TEARDROP FIDDLE LINES ON REMIND ME DEAR LORD AND WILL THERE BE ANY STARS FOR ITS DISK HAND ON THE TORCH BLUE NOTE US 3 DELVED INTO THE RICH JAZZ ARCHIVES OF BLUE NOTE RECORDS PULLED OUT SOME OF THE CATCHIEST MOST ACCESSIBLE TRACKS AND ADDED CONTEMPORARY RHYTHMS RAP AND INSTRUMENTATION THE RESULT IS THE BEST EXTENDED MARRIAGE OF JAZZ AND RAP TO DATE DRAWING FROM THE LIKES OF HERBIE HANCOCK DONALD BYRD GRANT GREEN LOU DONALDSON AND HORACE SILVER US 3 HAS CHOSEN MATERIAL THAT LENDS ITSELF TO AUGMENTATION AND THE MEMBERS OF THE GROUP'S HORN SECTION ED JONES GERARD PRESENCER DENNIS ROLLINS AND STEVE WILLIAMSON TAKE TURNS ADDING A CHOICE SOLO HERE AND THERE TO HELP UNITE THE OLD AND NEW US 3 INCLUDES THREE RAPPERS AND WHILE KOBIE POWELL IS LESS THAN ORDINARY HE DOES HOWEVER SUCCEED IN RHYMING AMMO AND ABDOMEN RAHSAAN AND TUKKA YOOT EACH HAVE A LILTING STYLE THAT AT TIMES SEEMS TO FLOAT ALONG WITH THE RHYTHM NOTED GUITARIST TONY REMY IS FEATURED ON GO TO WORK WHILE PIANIST MATTHEW COOPER EXECUTES THE DISK'S BEST NEW SOLO ON MAKE TRACKS 9403020061 940302 AT&T PLANS TO HANG UP ITS REAL CORPORATE NAME NEW YORK ANOTHER VENERABLE CORPORATE NAME BELONGS TO THE AGES AMERICAN TELEPHONE & TELEGRAPH CO WANTS TO BE JUST PLAIN AT&T CORP THE COMPANY OF COURSE HAS AN UNSENTIMENTAL EXPLANATION FOR WANTING TO CHANGE ITS NAME IT'S MORE PRACTICAL AND MOST PEOPLE KNOW THE TELECOMMUNICATIONS GIANT BY ITS INITIALS IT'S THE PERFECT TIME BEING THAT IT'S 10 YEARS SINCE OUR BREAKUP AND TELEPHONE AND TELEGRAPH DOESN'T DESCRIBE THE COMPANY WE ARE TODAY SAYS MARILYN LAURIE AT&T'S SENIOR VICE PRESIDENT OF PUBLIC RELATIONS AT&T'S OWN SURVEY SHOWED THAT 58 OF PEOPLE OVER 18 YEARS OLD DON'T EVEN KNOW WHAT THE LETTERS STAND FOR WHAT THEY USED TO STAND FOR WAS A NAME THAT SYMBOLIZED A BYGONE AMERICAN ERA WHEN UNPRETENTIOUS PEOPLE WITH NAMES LIKE BELL AND EDISON COULD INVENT THINGS THAT BECAME THE FOUNDATIONS FOR CORPORATE EMPIRES AMERICAN TELEPHONE & TELEGRAPH CO BECAME THE BIGGEST OF THEM ALL WHEN IT WAS BROKEN UP IN 1984 AT&T WAS THE WORLD'S LARGEST COMPANY WITH MORE THAN A MILLION EMPLOYEES REVENUES THAT TOPPED 100 BILLION AND WHAT IS STILL WIDELY REGARDED AS THE WORLD'S PREMIERE RESEARCH AND DEVELOPMENT ORGANIZATION 9403020060 940302 BUSINESS BRIEF PETROLEUM DEVELOPMENT CORP FIDELITY INVESTMENTS FUND BUYS 91 OF FIRM'S SHARES PETROLEUM DEVELOPMENT CORP SAID FIDELITY LOW PRICED STOCK FUND PURCHASED 948000 SHARES OR 91 OF THE COMPANY'S COMMON STOCK OUTSTANDING IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE FUND MANAGED BY FIDELITY INVESTMENTS BOSTON SAID ITS PURCHASE OF THE SHARES IS FOR INVESTMENT PURPOSES ONLY THE COMPANY'S LARGEST SHAREHOLDER PNC BANK CORP HOLDS 12 MILLION SHARES PETROLEUM DEVELOPMENT A BRIDGEPORT WVA INDEPENDENT OIL AND GAS CONCERN HAS THE OPTION TO REPURCHASE THE SHARES DURING THE NEXT FOUR YEARS DALE RETTINGER PETROLEUM DEVELOPMENT EXECUTIVE VICE PRESIDENT SAID THE COMPANY WAS PLEASED TO HAVE FIDELITY AS A MAJOR SHAREHOLDER PETROLEUM DEVELOPMENT HAS ABOUT 24 MILLION IN ANNUAL REVENUE PETROLEUM DEVELOPMENT SHARES ROSE 625 CENTS TO 175 IN NASDAQ STOCK MARKET TRADING YESTERDAY 9403020059 940302 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 BALLY'S PARK PLACE FUNDING INC 425 MILLION OF FIRSTMORTGAGE NOTES DUE MARCH 15 2004 PRICED AS 925S AT 97618 TO YIELD 9625 THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BALLY'S FUNDING IS A UNIT OF BALLY MANUFACTURING CORP FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF DEBENTURES DUE MARCH 3 2001 PRICED AT PAR TO YIELD 617 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 13 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE MARCH 8 1999 PRICED INITIALLY AT PAR TO YIELD 594 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO REPUBLIC NATIONAL BANK OF NEW YORK 1 BILLION OF NOTES DUE MARCH 8 1995 PRICED INITIALLY AT PAR TO YIELD 43 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE ONEYEAR TREASURY BILLS RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC REPUBLIC NATIONAL BANK OF NEW YORK IS A UNIT OF REPUBLIC NEW YORK CORP QUALITY DINING INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 1150 EACH THROUGH UNDERWRITERS LED BY MORGAN KEEGAN & CO AND MCDONALD & CO SECURITIES GEORGIA 2159 MILLION OF SERIES 1994B GENERALOBLIGATION IMPROVEMENT BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 36 IN 1996 TO 545 IN 2013 AND 2014 THE 20 MILLION SERIES 1994A IMPROVEMENT BONDS ARE BELIEVED TO HAVE BEEN WON BY A PRUDENTIAL SECURITIES INC GROUP YIELDS RANGE FROM 29 IN 1995 TO 43 IN 1999 GEORGIA'S BONDS HAVE A TRIPLEA RATING FROM MOODY'S AND A DOUBLEAPLUS RATING FROM STANDARD & POOR'S CORP NEW YORK STATE 2241 MILLION OF GENERALOBLIGATION IMPROVEMENT BONDS APPARENTLY WON BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 365 IN 1996 TO 575 IN 201524 THE BONDS HAVE A SINGLEA RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P NORFOLK VA 1827 MILLION OF SERIES 1994 IMPROVEMENT AND REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO YIELDS FOR REOFFERED BONDS RANGE FROM 3 IN 1995 TO 555 IN 2012 AND 2013 MOODY'S AND S&P RATED THE BONDS DOUBLEA HONDA MOTOR CO 4042 MILLION OF CERTIFICATES PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH HONDA AUTO RECEIVABLES 1994A GRANTOR TRUST WAS PRICED AS 48S AT 99859375 TO YIELD 495 A YIELD SPREAD OF 40 BASIS POINTS MORE THAN THE TREASURY'S 3875 NOTES OF AUGUST 1995 THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON 725 SUBORDINATE CERTIFICATES RETAINED BY THE ISSUER AND A RESERVE ACCOUNT WESTERN FINANCIAL SAVINGS BANK 200 MILLION OF AUTO ASSETBACKED CERTIFICATES PRICED BY SOLE MANAGER DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE SOLD THROUGH WESTERN FINANCIAL AUTO LOAN GRANTOR TRUST 19941 A SPECIALPURPOSE VEHICLE THE 184 MILLION OF SENIOR CERTIFICATES WERE PRICED AS 51S AT 998504 TO YIELD 522 A SPREAD OF 41 BASIS POINTS ABOVE THE TREASURY'S 4625 NOTES OF FEBRUARY 1996 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 185 YEARS DETAILS ON THE 16 MILLION SUBORDINATE CLASS WEREN'T AVAILABLE IMMEDIATELY THE ISSUE WAS RATED TRIPLEA BY S&P BASED ON A 100 INSURANCE WRAP PROVIDED BY THE FINANCIAL SECURITY ASSURANCE INC WESTERN FINANCIAL IS A UNIT OF WESTCORP AFRICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION OF 65 EUROBONDS DUE MARCH 15 2004 AT ISSUE AND REOFFER PRICE 9935 VIA LEHMAN BROTHERS INTERNATIONAL AND SALOMON BROTHERS INTERNATIONAL LTD BONDS YIELD 659 A MARGIN OF 28 BASIS POINTS OVER COMPARABLE US TREASURY FEES 0325 BANCO NACIONAL DE MEXICO SA DE CV NASSAU MEXICAN PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1996 AT ISSUE PRICE PAR VIA KIDDER PEABODY SECURITIES CO PAYABLE SEMIANNUALLY AT 100 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS FEES 04 COSMO OIL CO JAPAN 300 MILLION OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 17 1998 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC GUARANTOR INDUSTRIAL BANK OF JAPAN LTD WARRANTS EXERCISABLE FROM APRIL 6 TO MARCH 3 1998 TO PURCHASE ORDINARY COMPANY SHARES AT 25 INDICATED PREMIUM TERMS FIXED MARCH 9 TUESDAY'S CLOSING SHARE PRICE 879 YEN FEES 225 LESS 015 FOR LEAD MANAGER EUROPEAN SOVEREIGN INVESTMENTS SA LUXEMBOURG 100 MILLION SWISS FRANCS IN 50 MILLIONFRANC TWO TRANCHES OF FLOATINGRATE NOTES DUE JAN 7 1997 PRICED AT 1004 VIA CREDIT SUISSE COUPON ON FIRST TRANCHE 4 UNTIL JAN 7 1995 REVERTING TO THREEMONTH FRANC LIBOR FLAT THEREAFTER SECOND TRANCHE COUPON THREEMONTH LIBOR FLAT FORD CREDIT EUROPE PLC US PARENT 10 BILLION YEN OF 3635 EUROBONDS DUE JUNE 23 1997 AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL AND SUMITOMO TRUST INTERNATIONAL PLC BONDS YIELD 3635 LAUNCHED OFF EURO MEDIUMTERM NOTE PROGRAM FEES UNDISCLOSED PAYABLE SEMIANNUALLY HITACHI ZOSEN CORP JAPAN 200 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 17 1998 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC WARRANTS EXERCISABLE FROM APRIL 6 TO MARCH 10 1998 TO PURCHASE ORDINARY COMPANY SHARES AT 25 INDICATED PREMIUM TERMS TO BE FIXED TUESDAY FEES 225 LESS 015 FOR LEAD MANAGER MITSUBA ELECTRIC MANUFACTURING CO JAPAN 65 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 17 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0125 COUPON AT PAR VIA BANK VON ERNST & CIE AG WARRANTS EXERCISABLE FROM APRIL 1 TO MARCH 3 1998 TO PURCHASE COMPANY SHARES AT EXPECTED 25 PREMIUM TERMS TO BE FIXED MONDAY FEES 1625 NIKKO CO JAPAN 60 MILLION MARKS OF 1375 CONVERTIBLE EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE PAR VIA DEUTSCHE BANK AG TERMS TO BE FIXED MONDAY BONDS CONVERTIBLE FROM APRIL 1 TO MARCH 17 1998 INTO ORDINARY COMPANY SHARES AT 25 INDICATED PREMIUM FEES 225 TOBU RAILWAY CO JAPAN 400 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 24 1998 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD WARRANTS EXERCISABLE FROM APRIL 7 TO MARCH 17 1998 TO PURCHASE ORDINARY COMPANY SHARES AT 25 INDICATED PREMIUM WHICH IS TO BE ADJUSTED TO REFLECT STOCK SPLIT MARCH 31 TERMS TO BE FIXED TUESDAY FEES 225 LESS 02 FOR LEAD MANAGER 9403020058 940302 INTERNATIONAL BRIEF AB ELECTROLUX COMPANY TO SELL UP TO 100 OF THE SHARES IN A SUBSIDIARY SWEDISH HOUSEHOLD APPLIANCE GROUP AB ELECTROLUX SAID IT HAS DECIDED TO SELL AS MUCH AS 100 OF THE SHARES IN ITS ELECTROLUX AUTOLIV AB UNIT AND APPLY FOR AUTOLIV'S LISTING ON THE STOCKHOLM STOCK EXCHANGE BEFORE THE END OF JUNE AUTOLIV IS THE LARGEST EUROPEAN MAKER OF SAFETY BELTS AIR BAGS AND OTHER PERSONAL SAFETY EQUIPMENT FOR AUTOMOBILES IN 1993 THE COMPANY HAD PRETAX PROFIT OF 300 MILLION KRONOR 376 MILLION ON SALES OF 53 BILLION KRONOR 6648 MILLION ELECTROLUX SAID ELECTROLUX DECIDED TO SELL AUTOLIV AS PART OF ITS STRATEGY TO CONCENTRATE ON CORE OPERATIONS IT SAID THE GROUP ALSO WANTS TO STRENGTHEN ITS FINANCIAL POSITION TO ALLOW FURTHER ACQUISITIONS WITHIN ITS CORE AREASHOUSEHOLD APPLIANCES COMMERCIAL APPLIANCES OUTDOOR PRODUCTS AND INDUSTRIAL PRODUCTS 9403020057 940302 BUSINESS BRIEF FRIED KRUPP AG HOESCHKRUPP GERMAN OFFICIALS ORDER SALE OF AUTOSUSPENSION BUSINESS GERMANY'S FEDERAL CARTEL OFFICE ORDERED FRIED KRUPP AG HOESCHKRUPP TO SELL THE AUTOMOBILESUSPENSION OPERATIONS OF ITS KRUPP BRUENINGHAUS SUBSIDIARY IF THE GERMAN DIVERSIFIED STEEL AND INDUSTRIAL GROUP DOESN'T COMPLY WITH THE ORDER THE CARTEL OFFICE SAID IT WILL ASK AN INDEPENDENT AUDITOR TO SELL THE UNIT THE KRUPP AND HOESCH FIRMS WERE ALLOWED TO MERGE IN APRIL 1992 ON THE CONDITION THAT THE UNIT BE SOLD BY DEC 31 1993 BUT THE COMBINED COMPANY GAVE NOTICE AT THE END OF 1993 THAT IT WOULDN'T STICK TO THE CONTRACT BECAUSE MARKET CONDITIONS HAD WORSENED THE CARTEL OFFICE HAS SAID IT WOULDN'T ACCEPT THIS REASON BECAUSE CONDITIONS HAD WORSENED ACROSS THE INDUSTRY THE FIRM SAID IT WOULD FIGHT THE ORDER IN COURT 9403020056 940302 LETTERS TO THE EDITOR SINGAPORE MUST PLUG ANY LEAKS QUICKLY YOUR FEB 24 EDITORIAL TRIVIAL SECRETS' CRITICIZED THE PROSECUTION OF THARMAN SHANMUGARATNAM AND FOUR OTHERS FOR VIOLATING SINGAPORE'S OFFICIAL SECRETS ACT BY DIVULGING OFFICIAL SECRETS YOUR DESCRIPTION OF HOW INNOCENT THE LEAK WAS AS IF THESE WERE ESTABLISHED FACTS SHOWS LITTLE OF THE RESPECT FOR THE JUDICIAL PROCESS THAT YOUR PAPER HAS ALWAYS ADVOCATED THE TRIAL IS STILL IN PROGRESS HOW THE LEAK HAPPENED IS FOR THE COURT TO DECIDE IF AS YOU CLAIM THE PROSECUTION HAS ULTERIOR MOTIVES AND THE ACCUSED ARE INNOCENT THEN THE PROSECUTION WILL FAIL THE GOVERNMENT IS FULLY AWARE THAT MARKETS DEPEND ON INFORMATION AND MORE AND FASTER INFORMATION WILL ALLOW THEM TO WORK BETTER IT RELEASES SIGNIFICANT INFORMATION AS QUICKLY AS POSSIBLE SO THAT LOTS OF PEOPLE ARE COMPETING TO EVALUATE IT BUT THAT DOES NOT MEAN THERE SHOULD BE NO SECRETS IN SINGAPORE NO GOVERNMENT CAN FUNCTION COMPLETELY IN THE PUBLIC VIEW EVEN INFORMATION THAT IS TO BE PUBLISHED MUST BE KEPT SECRET BEFOREHAND ESPECIALLY IF IT IS MARKET SENSITIVE SO THAT IT CAN BE RELEASED PROPERLY AND SIMULTANEOUSLY TO ALL MARKET PARTICIPANTS THE GDP GROWTH FIGURE WHOSE LEAK LED TO THIS TRIAL IS A CASE IN POINT THE SINGAPORE GOVERNMENT WILL NOT ALLOW ANYONE TO USE THE EXCUSE OF AGGRESSIVE REPORTING OR THE NEEDS OF THE INFORMATION AGE TO DIVULGE CLASSIFIED INFORMATION THE FACT THAT SINGAPORE IS HARDLY LEAKING ALL OVER THE PLACE IS BECAUSE WE PLUG LEAKS WHENEVER THEY OCCUR THIS ATTITUDE MAY STRIKE AMERICAN JOURNALISTS AS QUAINT SINCE WATERGATE AND THE PASSAGE OF THE US FREEDOM OF INFORMATION ACT AMERICANS HAVE GROWN USED TO FREQUENT LEAKS OF SENSITIVE OFFICIAL INFORMATION AMERICAN JOURNALISTS SOME OFFICIALS AND EVEN THE PUBLIC REGARD SUCH LEAKS AS NORMAL AMERICAN SOCIETY CANNOT CLAIM THAT THIS CHANGE HAS IMPROVED AMERICAN GOVERNANCE SINGAPORE IS NOT FOLLOWING THAT AMERICAN MODEL 9403020055 940302 BUSINESS BRIEF PALL CORP FILTRATION PRODUCTS CONCERN SAYS 2NDPERIOD NET CLIMBED PALL CORP SAID PROFIT ROSE SHARPLY IN ITS FISCAL SECOND QUARTER AND IT HAS SET A GOAL OF 10 TO 15 GROWTH IN PERSHARE EARNINGS FOR THE ENTIRE FISCAL YEAR THE EAST HILLS NY MAKER OF INDUSTRIAL FILTRATION PRODUCTS SAID IT HAD NET INCOME OF 22 MILLION IN THE QUARTER ENDED JAN 29 OR 19 CENTS A SHARE UP FROM 33 MILLION OR THREE CENTS A SHARE A YEAR EARLIER PROFIT IN THE YEAREARLIER QUARTER WAS REDUCED BY 173 MILLION IN AFTERTAX RESTRUCTURING CHARGES REVENUE ROSE TO 1711 MILLION FROM 1685 MILLION A YEAR EARLIER PRESIDENT ERIC KRASNOFF SAID PALL HAS REVISED DOWNWARD ITS SALES GOAL FOR THE FISCAL YEAR TO A RANGE OF 720 MILLION TO 725 MILLION DUE TO EXCHANGE RATES IN NOVEMBER THE COMPANY SAID IT EXPECTED SALES TO REACH 743 MILLION BUT HE SAID PERSHARE EARNINGS SHOULD GROW AT A GREATER RATE THAN SALES DUE TO COSTCUTTING MOVES FOR THE SIX MONTHS NET WAS 331 MILLION OR 29 CENTS A SHARE UP FROM 142 MILLION OR 12 CENTS A SHARE REVENUE FELL TO 3143 MILLION FROM 3183 MILLION 9403020054 940302 A WHITEWATER WHITEWASH BY ALFONSE D'AMATO THE AMERICAN PEOPLE HAVE A RIGHT TO KNOW THE FACTS ABOUT THE WHITEWATER/MADISON AFFAIR THEY ALSO DESERVE TO KNOW THAT LAWS WILL BE ENFORCED IMPARTIALLY EVEN IF THAT ENFORCEMENT MAY TOUCH UPON POWERFUL PUBLIC OFFICIALS JUDGING FROM THE DEFENSIVE REACTION OF DEMOCRATIC POLITICAL OPERATIVES IN RECENT DAYS SOMETHING MAY WELL BE ROTTEN IN LITTLE ROCK AND WASHINGTON SOME HAVE CLAIMED THAT CONGRESS MUST SIT BY IDLY UNTIL SPECIAL COUNSEL ROBERT FISKE COMPLETES HIS INVESTIGATION AN INVESTIGATION THAT COULD TAKE YEARS THEIR RATIONALE CONGRESSIONAL INTERVENTION WOULD COMPROMISE THE INTEGRITY OF HIS INVESTIGATION ON THE CONTRARY I BELIEVE CONGRESS MUST USE ITS OVERSIGHT CAPACITY TO PROTECT THE INTEGRITY OF ANY WHITEWATER/MADISON INVESTIGATION LAST WEEK THE SENATE BANKING COMMITTEE DISCOVERED A CLEAR THREAT TO THE INTEGRITY OF THE RESOLUTION TRUST CORP'S INVESTIGATION FROM TOP ADMINISTRATION OFFICIALS AND POLITICAL INSIDERS THE RTC'S INVESTIGATION MAY ALREADY HAVE BEEN COMPROMISED IN DEEPLY DISTURBING TESTIMONY DEPUTY TREASURY SECRETARY ROGER C ALTMAN CONFIRMED THAT HE AND TREASURY GENERAL COUNSEL JEAN HANSEN WENT TO THE WHITE HOUSE TO GIVE A HEADSUP BRIEFING THIS BRIEFING WAS ATTENDED BY WHITE HOUSE COUNSEL BERNARD NUSSBAUM AND AN UNNAMED ASSISTANT DEPUTY CHIEF OF STAFF HAROLD ICKES AND THE FIRST LADY'S CHIEF OF STAFF MARGARET WILLIAMS APPARENTLY MR ALTMAN BELIEVED THAT TOP WHITE HOUSE LEGAL AND POLITICAL ADVISERS NEEDED HIS GUIDANCE TO UNDERSTAND THE LEGAL AND PROCEDURAL FRAMEWORK WITHIN WHICH THE RTC WAS WORKING IN CONNECTION WITH MADISON THE WHITE HOUSE NOW STATES FALSELY THAT CONGRESS AND THE MEDIA ALSO RECEIVED SUCH BRIEFINGS BUT AT THE TIME THIS GROUP WAS MEETING AT THE WHITE HOUSE I WAS SPEAKING OUT ON THE SENATE FLOOR ABOUT THE RTC'S FAILURE TO PROVIDE OUR COMMITTEE WITH ANY INFORMATION ABOUT ITS ACTIVITIES ON THE MADISON/WHITEWATER MESS AND I HAVE YET TO ENCOUNTER A REPORTER COVERING THIS STORY WHO SAYS HE WAS BRIEFED BY THE RTC LET ALONE ITS ACTING CEO MR ALTMAN MR ALTMAN'S APPARENT LAPSE OF JUDGMENT TRIGGERS SERIOUS QUESTIONS WHY DID MR NUSSBAUM AS WHITE HOUSE COUNSEL NEED TO BE BRIEFED ON THE RTC'S INVESTIGATION OF MADISON THIS INVESTIGATION DOES NOT TOUCH UPON THE PRESIDENT IN HIS OFFICIAL CAPACITY AND WHAT ABOUT MR ICKES AND MS WILLIAMS WHY WOULD THESE POLITICAL OPERATIVES NEED TO BE BRIEFED BY A TOP AGENCY OFFICIAL ON THAT AGENCY'S INVESTIGATION INTO A MATTER THAT HAS NOTHING TO DO WITH THE EXECUTIVE OFFICE OF THE PRESIDENT MS WILLIAMS A FORMER DEMOCRATIC NATIONAL COMMITTEE OPERATIVE HAD EARLIER JOINED MR NUSSBAUM IN SEARCHING VINCENT FOSTER'S OFFICE WHY WAS THIS BRIEFING ATTENDED BY THE TREASURY GENERAL COUNSEL MS HANSEN WHEN IT DEALT WITH MATTERS WITHIN THE RTC'S AUTHORITY MR ALTMAN HAS FINALLY RECUSED HIMSELF FROM THE WHITEWATER/MADISON MATTER UNFORTUNATELY THAT DOES NOT ANSWER QUESTIONS ABOUT THE PROPRIETY OF THIS MEETING AND HIS RECUSAL CANNOT ENSURE THAT A FAIR AND IMPARTIAL INVESTIGATION WILL BE CONDUCTED THESE ARE LEGITIMATE ISSUES THAT WARRANT A CONGRESSIONAL HEARING THE RTC'S DEPUTY CEO JOHN RYAN RECENTLY WROTE TO ME THAT IT IS STANDARD OPERATING PROCEDURE NOT TO DISCUSS ANY MATTER RELATING TO THE REVIEW OF POTENTIAL CIVIL CLAIMS OF ANY INSTITUTION AND THAT IT WAS INAPPROPRIATE TO PROVIDE ANY SPECIFICS OR ANY INFORMATION RELATING TO THE STATUS OF OUR REVIEW APPARENTLY DIFFERENT STANDARDS MAY APPLY TO DISCUSSIONS WITH THE WHITE HOUSE SEN D'AMATO OF NEW YORK IS THE RANKING REPUBLICAN ON THE BANKING COMMITTEE 9403020053 940302 BUSINESS BRIEF ALL AMERICAN SEMICONDUCTOR INC COMPANY SEES PROFIT FOR 1993 DOUBLING FROM YEAR AGO ALL AMERICAN SEMICONDUCTOR INC EXPECTS TO REPORT THAT 1993 EARNINGS MORE THAN DOUBLED FROM 1992 AS SALES ROSE ABOUT 38 BRUCE GOLDBERG EXECUTIVE VICE PRESIDENT SAID THE MIAMI DISTRIBUTOR OF ELECTRONIC PARTS ESTIMATES THAT 1993 NET TOTALED BETWEEN 16 MILLION AND 17 MILLION OR ABOUT 17 CENTS TO 18 CENTS A SHARE THAT COMPARES WITH 1992 PROFIT OF 756000 OR 12 CENTS A SHARE THE NUMBER OF AVERAGE SHARES OUTSTANDING WAS ALMOST 92 MILLION IN 1993 COMPARED WITH 65 MILLION IN 1992 SALES IN 1993 MR GOLDBERG SAID JUMPED TO ABOUT 675 MILLION FROM 49 MILLION A YEAR EARLIER THE COMPANY SEES NET FOR 1993'S FOURTH QUARTER RISING TO BETWEEN 390000 AND 430000 OR THREE CENTS TO FOUR CENTS A SHARE FROM YEARAGO NET OF 36000 OR ONE CENT A SHARE 9403020052 940302 REVIEW & OUTLOOK EDITORIAL ASIDES CAPITOL FLOOD HUNDREDS OF THOUSANDS OF CALLS RECENTLY FLOODED CAPITOL HILL SWITCHBOARDS TO PROTEST A BILL THAT WOULD HAVE REQUIRED ALL TEACHERS INCLUDING THOSE IN PRIVATE SCHOOLS AND PARENTS WHO HOME SCHOOL TO BE STATECERTIFIED ONE OFFICE WE SPOKE WITH REPORTED IT RECEIVED NEARLY 1000 CALLS FROM THE DISTRICT NEARLY ONE MILLION AMERICANS TEACH THEIR CHILDREN AT HOME MANY DO SO BECAUSE THEY CAN'T AFFORD PRIVATE SCHOOLS BUT REFUSE TO EXPOSE THEIR CHILDREN TO PUBLIC SCHOOLS THEY SEE AS PLAGUED BY VIOLENCE OR A LACK OF VIGOROUS STANDARDS NOT ONE OF THE 50 STATES NOW REQUIRES HOMESCHOOLING PARENTS TO BE CERTIFIED AFTER HEARING FROM THEIR CONSTITUENTS THE HOUSE VOTED 374 TO 53 IN FAVOR OF AN AMENDMENT BY REP DICK ARMEY BANNING FEDERAL REGULATION OF HOME SCHOOLS SOUNDS AS IF HOMESCHOOLING PARENTS NOT ONLY TAUGHT THEIR CHILDREN LAST WEEK BUT GAVE A STERN LECTURE TO MEMBERS OF CONGRESS AS WELL 9403020051 940302 GE MOTOROLA SHARE TECHNOLOGY TO MARKET NEW FLUORESCENT LAMP GENERAL ELECTRIC CO'S AND MOTOROLA INC'S LIGHTING DIVISIONS SAID THEY JOINTLY WILL MARKET FLUORESCENT LAMPS USING GE'S TUBULAR BULBS AND MOTOROLA'S ELECTRONIC BALLASTS A BALLAST PROVIDES A HIGHVOLTAGE DISCHARGE TO START A FLUORESCENT LAMP AND MAINTAINS THE ENERGY AT A CERTAIN LEVEL TRADITIONAL ELECTROMAGNETIC BALLASTS ARE BEING REPLACED BY ELECTRONIC BALLASTS WHICH ARE 30 MORE EFFICIENT NEW YORKBASED GE SAID THE COMPANIES SAID A NEW LINE OF ELECTRONIC BALLASTS WILL BE USED IN A LIGHTING SYSTEM THAT COMBINES TECHNOLOGIES AND PRODUCTS OF BOTH BUSINESSES MOTOROLA IS BASED IN SCHAUMBURG ILL GE LIGHTING SAID THE ALLIANCE MARKS ITS ENTRY INTO THE NEARLY 500 MILLION AYEAR MARKET FOR ELECTRONIC TUBULAR FLUORESCENT BALLASTS IN NORTH AMERICA THE COMPANIES SAID THEY INTEND TO COLLABORATE ON OTHER LIGHTING PRODUCTS 9403020049 940302 WHITE HOUSE STUDY OF ITS HEALTH PLAN FINDS ALL STATES SAVE TALLY IN POLITICAL DOCUMENTS PLACES THE TOTAL SAVINGS AT 395 BILLION BY 2000 BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION RELEASED 51 REPORTS SHOWING HOW EACH OF THE STATES AND THE DISTRICT OF COLUMBIA WOULD FARE UNDER THE PRESIDENT'S HEALTHCARE BILL THE UNSURPRISING CONCLUSION ALL 51 WOULD SAVE MONEY THE STACK OF REPORTS ABOUT TWOFEET HIGH CONTAINS MOUNDS OF NUMBERS BUT THEY ARE AS MUCH POLITICAL DOCUMENTS AS ECONOMIC FIGURES THE ADMINISTRATION PLANS TO SEND THEM TO EVERY MEMBER OF CONGRESS AS PART OF AN EFFORT TO WIN OVER LAWMAKERS WITH PROMISES OF SAVINGS FOR THEIR STATES BY THE ADMINISTRATION'S ANALYSIS STATES WOULD SAVE A TOTAL OF 395 BILLION BETWEEN 1996 AND 2000 COMPARED WITH WHAT THEY WOULD SPEND IF THE CLINTON BILL WEREN'T ENACTED MUCH OF THE SAVINGS WOULD COME IN STATE CONTRIBUTIONS TO MEDICAID THE FEDERALSTATE HEALTHCARE PROGRAM FOR LOWINCOME PEOPLE IN ADDITION STATES WOULD REAP SAVINGS FROM A PROPOSED FEDERAL LONGTERM CARE PROGRAM FOR THE ELDERLY CHRONICALLY ILL AND DISABLED STATES ARE CLEARLY AMONG THE WINNERS UNDER THE HEALTH SECURITY ACT DECLARED KENNETH THORPE THE HEALTH AND HUMAN SERVICES DEPARTMENT'S DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY THE CLINTON PLAN AIMS TO GUARANTEE A COMPREHENSIVE PACKAGE OF HEALTH BENEFITS TO ALL AMERICANS WHILE AT THE SAME TIME CONTROLLING MEDICAL COSTS ALL EMPLOYERS WOULD BE REQUIRED TO PAY PART OF THEIR WORKERS' HEALTH PREMIUMS AND EMPLOYERS AND INDIVIDUALS WOULD BE GROUPED INTO LARGE BUYING POOLS TO INCREASE THEIR BARGAINING CLOUT WITH INSURERS AND OTHER HEALTH PLANS IN ADDITION THE PLAN WOULD LIMIT THE ANNUAL INCREASE IN PRIVATE HEALTH INSURANCE PREMIUMS AS WELL AS SPENDING ON MEDICAID AND MEDICARE THE FEDERAL HEALTH PROGRAM FOR ELDERLY AND DISABLED PEOPLE IT IS DIFFICULT TO ASSESS THE ACCURACY OF THE ADMINISTRATION'S FIGURES LEWINVHI A PROMINENT HEALTHCARE CONSULTING FIRM THAT HAS DONE A PREVIOUS ANALYSIS OF THE CLINTON HEALTH PLAN DECLINED TO COMMENT ON THE REPORTS SAYING IT HADN'T HAD A CHANCE TO STUDY THEM YET ONE BIG QUESTION IS HOW POLITICALLY REALISTIC ARE MR CLINTON'S PROPOSALS TO SET STRINGENT CAPS ON PREMIUMS AND PUBLICHEALTH PROGRAMS ANOTHER UNKNOWN IS HOW MUCH IT WILL COST STATES TO SET UP AND ADMINISTER THE REGIONALBUYING POOLS THAT THE WHITE HOUSE IS PROPOSING NOT SURPRISINGLY THE ADMINISTRATION'S FIGURES SHOW THAT THE BIGGEST SAVINGS WOULD GO TO THE BIGGEST STATES THEY SHOW THAT CALIFORNIA FOR EXAMPLE WOULD SAVE 58 BILLION IN MEDICAID SPENDING AND LONGTERM CARE PROGRAMS THE STATE WOULD SAVE AN ADDITIONAL 707 MILLION ON STATEEMPLOYEE HEALTH BENEFITS IN 2000 THE ADMINISTRATION SAYS BY 2000 THE ADMINISTRATION'S ANALYSIS SHOWS CALIFORNIA EMPLOYERS WHO CURRENTLY OFFER INSURANCE WOULD SAVE ON AVERAGE 1082 A WORKER IF THE CLINTON PLAN IS ENACTED NEW YORK WHERE DEMOCRATIC GOV MARIO CUOMO HAS EXPRESSED WORRY THAT THE STATE WOULD FARE POORLY UNDER THE CLINTON PLAN WOULD ACTUALLY DO THE BEST OF ALL BY THE ADMINISTRATION'S ANALYSIS IT WOULD SAVE AT LEAST 86 BILLION IN MEDICAID AND COMMUNITYBASED LONGTERM CARE EXPENDITURES BETWEEN 1996 AND 2000 ACCORDING TO THE REPORT NEW YORK STATE OFFICIALS WERE DUBIOUS A STATE TASK FORCE RECENTLY CONCLUDED THE STATE WOULD SAVE ONLY ABOUT 1 BILLION IN MEDICAID SPENDING IN THE FIRST FOUR YEARS AND ACTUALLY WOULD LOSE 300 MILLION IN THE FIRST YEAR IT EXPECTS NOT TO SAVE ANY MONEY ON LONGTERM CARE WE STAND BY OUR EARLIER NUMBERS SAID RICK COOK DEPUTY SECRETARY TO THE GOVERNOR FOR HEALTH MEANWHILE SENATE REPUBLICANS PLANNED A PARTY MEETING THURSDAY AND FRIDAY ON THE HEALTHCARE ISSUE FEW EXPECT A SINGLE UNIFIED POSITION TO EMERGE FROM THE SESSION BUT AS THE CLINTON PLAN HAS FALTERED IN CONGRESS CONSERVATIVES ARE PRESSING PARTY MODERATES TO MOVE BACK TO THE RIGHT SO THE GOP CAN MAXIMIZE ITS LEVERAGE IN THE DEBATE AHEAD MUCH OF THIS PRESSURE IS DIRECTED AT RHODE ISLAND SEN JOHN CHAFEE THE LEAD SPONSOR OF A GOP ALTERNATIVE THAT SEEKS TO ACHIEVE UNIVERSAL HEALTHINSURANCE COVERAGE BY A COMBINATION OF SUBSIDIES AND MANDATES REQUIRING ALL INDIVIDUALS TO BUY HEALTH INSURANCE AS CHAIRMAN OF THE PARTY'S HEALTHCARE TASK FORCE MR CHAFEE WILL HOST THE RETREAT THIS WEEK IN MARYLAND AND AT THE WEEKLY CAUCUS LUNCHEON YESTERDAY CONSERVATIVES PRESSED FOR A MORE OPEN AGENDA TO GIVE SENATORS MORE TIME TO CONFRONT THEIR DIFFERENCES THERE IS NO QUESTION THE REPUBLICANS ARE SPLIT ON THE QUESTION OF MANDATES SAID OREGON SEN ROBERT PACKWOOD IN AN INTERVIEW TELEVISED BY THE REPUBLICAN CAUCUS THIS WEEK IF YOU DON'T ACCEPT THE CONCEPT OF MANDATES YOU DON'T GET UNIVERSAL COVERAGE THAT'S WHERE THE SPLIT IS HE SAID 9403020048 940302 NATIONAL CITY'S STOCK BUYBACK CLEVELAND NATIONAL CITY CORP SAID ITS BOARD AUTHORIZED THE PURCHASE IN THE OPEN MARKET OR OTHERWISE OF AS MANY AS FIVE MILLION ADDITIONAL SHARES OF THE COMPANY'S COMMON STOCK AND ANY AMOUNT OF DEPOSITARY SHARES OF ITS 8 CUMULATIVE CONVERTIBLE PREFERRED STOCK THE BUYBACK PROGRAM IS SUBJECT TO A COMBINED PURCHASE LIMIT OF 200 MILLION THE BANK HOLDING COMPANY SAID NATIONAL CITY SAID ALL COMMON SHARES PURCHASED WILL BE HELD AS TREASURY SHARES FOR REISSUE IN CONNECTION WITH STOCK OPTION PLANS AND USED FOR GENERAL CORPORATE PURPOSES ANY DEPOSITARY SHARES OF PREFERRED STOCK ACQUIRED WILL BE RETIRED THE STOCK REPURCHASE PROGRAM WILL BEGIN AFTER COMPLETION OF AN EXISTING BUYBACK PROGRAM ANNOUNCED IN DECEMBER 9403020047 940302 BUSINESS BRIEF CORNING INC PURCHASE OF SOME BUSINESSES OF NORTHERN TELECOM CLOSES CORNING INC AND ITS SIECOR CORP JOINT VENTURE SAID THEY COMPLETED THEIR PREVIOUSLY ANNOUNCED PURCHASE OF NORTHERN TELECOM LTD'S OPTICALFIBER AND OPTICALCABLE BUSINESSES FOR 130 MILLION CORNING BASED IN CORNING NY WILL PAY 1085 MILLION WITH ITS JOINTVENTURE PARTNER SIEMENS CORP A UNIT OF COMMUNICATIONSEQUIPMENT CONCERN SIEMENS AG PAYING 215 MILLION CORNING WHICH ALSO HAS INTERESTS IN SPECIALTY MATERIALS AND CONSUMER PRODUCTS USED PROCEEDS FROM A RECENT BLOCK SALE OF EIGHT MILLION COMMON SHARES TO GOLDMAN SACHS & CO TO FINANCE THE PURCHASE SIECOR 50OWNED BY CORNING WILL CONTINUE TO OPERATE THE OPTICALCABLE FACTORY IN SASKATOON SASKATCHEWAN IN ADDITION SIECOR AND NORTHERN TELECOM A COMMUNICATIONSEQUIPMENT COMPANY HAVE REACHED A LONGTERM OPTICALCABLE SUPPLY PACT 9403020046 940302 BUSINESS BRIEF HANSON PLC OFFICE PRODUCTS UNIT IS SOLD FOR TOTAL OF 1625 MILLION HANSON INDUSTRIES NEW YORK THE US ARM OF BRITISH CONGLOMERATE HANSON PLC SAID IT COMPLETED THE SALE OF HANSON OFFICE PRODUCTS WHIPPANY NJ TO CORPORATE EXPRESS A DENVER PRIVATELY HELD CONTRACT STATIONER FOR 1625 MILLION SEPARATELY ANOTHER HANSON INDUSTRIES UNIT QUANTUM CHEMICAL CO SAID IT WILL PERMANENTLY CLOSE ITS CLINTON MASS PLASTICS COMPOUNDING PLANT THE SHUTDOWN WITH THE LOSS OF ALL 61 POSITIONS AT THE PLANT IS EXPECTED TO BE COMPLETED WITHIN THE NEXT NINE MONTHS QUANTUM BASED IN CINCINNATI SAID THAT IT IS DISCONTINUING UNPROFITABLE PRODUCT LINES AND THAT THE REMAINING PRODUCT LINES WILL BE PRODUCED AT OTHER QUANTUM COMPOUNDING FACILITIES RESULTING IN AN ANNUAL COST SAVING OF 25 MILLION 9403020045 940302 YOUR MONEY MATTERS LIFE INSURANCE FEE EXPENSES CAN BE CUT BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S A NEW WAY TO SAVE ON THE HIGH COST OF LIFE INSURANCE WHILE PEOPLE WHO WANT TO WHITTLE THE COST OF COMMISSIONS WHEN BUYING STOCKS AND MUTUAL FUNDS CAN TURN TO DISCOUNT BROKERAGE FIRMS AND NOLOAD MUTUALFUND COMPANIES LIFEINSURANCE BUYERS HAVE HAD FEW OPTIONS TO REDUCE THE COMMISSIONS THEY PAY COMMISSIONS ON CASHVALUE LIFE INSURANCE WHICH COMBINES INSURANCE PROTECTION WITH AN INVESTMENT COMPONENT ARE TYPICALLY MORE THAN 100 OF THE FIRST YEAR'S PREMIUM CONSEQUENTLY THE POLICIES HAVE ZERO SURRENDER VALUE IN THE EARLY YEARS REGARDLESS OF HOW MANY THOUSANDS OF DOLLARS IN PREMIUMS YOU'VE PAID IN IF YOU DROP THE POLICY IN THE EARLY YEARS YOU WALK AWAY WITH LITTLE OR NOTHING IT HAS BEEN POSSIBLE TO ELIMINATE THE TRADITIONAL AGENTS' COMMISSION BY PURCHASING LOW LOAD INSURANCE DIRECTLY FROM A HANDFUL OF INSURERS OR THROUGH FEEONLY FINANCIAL PLANNERS BUT FINDING THOSE COMPANIES ISN'T ALWAYS EASY AND MANY PEOPLE DON'T NEED OR CAN'T AFFORD TO WORK WITH A PLANNER ENTER THE WHOLESALE INSURANCE NETWORK YESTERDAY A TAMPA FLA CONSORTIUM OF FEEONLY PLANNERS KNOWN AS FEE FOR SERVICE LAUNCHED THE SUBSIDIARY TO PROVIDE A THIRD WAY TO BUY LOWLOAD LIFE INSURANCE THE NETWORK IS A FREE TELEPHONE SERVICE THAT LINES UP CALLERS WITH LOWLOAD INSURANCE PRODUCTS INCLUDING UNIVERSAL LIFE WHOLE LIFE FIRSTTODIE AND SURVIVORSHIP LIFE AS WELL AS TERM LIFE ANNUITIES AND DISABILITY INCOME COVERAGE INSURANCE BUYERS CAN CALL A TOLLFREE LINE 8008085810 AND DEPENDING ON THEIR AGE GENDER THE TYPE OF POLICY THEY WANT AND THE FACE AMOUNT OF COVERAGE THEY NEED RECEIVE TWO QUOTES FROM AMONG THE 25 LOWLOAD POLICIES OFFERED BY THE 10 COMPANIES IN THE NETWORK THE COMPANIES INCLUDE AMERITAS LIFE INSURANCE CORP JOHN ALDEN LIFE INSURANCE CO FEDERAL HOME LIFE INSURANCE CO AND SECURITY BENEFIT LIFE INSURANCE CO SHOPPERS CAN ALSO MAIL OR FAX A PROPOSAL THEY'VE BEEN GIVEN BY AN AGENT AND RECEIVE QUOTES ON COMPETITIVE LOWLOAD POLICIES INSURANCE SHOPPERS WHO ARE INTERESTED IN PURCHASING A POLICY THROUGH THE SERVICE CAN THEN SEND IN AN APPLICATION WHICH THE SERVICE FORWARDS TO THE INSURER THE INSURER THEN CONTACTS THE BUYER ARRANGES A MEDICAL EXAM AND IF ALL GOES WELL ISSUES A POLICY THERE'S NO COST FOR THIS SERVICE WHOLESALE INSURANCE NETWORK RECEIVES NO COMMISSIONS AND IS PAID A MARKETING EXPENSE ALLOWANCE BY COMPANIES WHOSE POLICIES IT SELLS MARKETING ALLOWANCES ARE THE SAME REGARDLESS OF WHETHER YOU BUY THE POLICY THROUGH THE NETWORK WITH THE HELP OF A FEEONLY PLANNER OR DIRECTLY FROM THE INSURER THE SAVINGS CAN BE SIGNIFICANT WITH AGENTSOLD INSURANCE COMMISSIONS AND OTHER FEES PAID TO THE AGENT BY THE INSURER TOTAL AN AVERAGE OF 165 OF THE FIRST YEAR'S PREMIUM SAYS KEITH MAURER PRESIDENT AND CREATOR OF THE LOWLOAD BUYING SERVICE HE SAYS MONEY PAID TO THE SELLING AGENT GENERALLY CONSUMES 10 TO 15 OF THE SECONDYEAR PREMIUM AND 7 OR SO OF THE PREMIUMS PAID FOR THE NEXT 15 TO 20 YEARS IN CONTRAST LOWLOAD POLICIES HAVE FEES OF 25 IN THE FIRST YEAR AND 2 TO 3 THEREAFTER THIS COVERS BASIC COSTS OF UNDERWRITING MEDICAL EXAMS AND HOMEOFFICE MARKETING EXPENSES LOWLOAD LIFE INSURANCE REDUCES NOT ONLY THE COST OF BUYING INSURANCE BUT CUTS THE RISK OF LOSING YOUR MONEY IF YOU CASH OUT EARLY ACCORDING TO THE LIFE INSURANCE MARKETING AND RESEARCH ASSOCIATION AN INDUSTRY TRADE GROUP A QUARTER OF ALL POLICIES LAPSE WITHIN TWO YEARS BY THE END OF YEAR FIVE MORE THAN HALF OF ALL POLICYHOLDERS HAVE CALLED IT QUITS IF YOU CAN'T AFFORD TO PAY YOUR PREMIUMS YOUR POLICY LAPSES AND YOU LOSE YOUR MONEY WITH LOWLOAD INSURANCE YOU GET YOUR MONEY BACK SAYS MR MAURER GLENN DAILY A FEEONLY INSURANCE ADVISER IN NEW YORK SAYS ANOTHER ADVANTAGE OF BUYING LOWLOAD INSURANCE DIRECTLY IS TO BYPASS PRESSURE FROM AGENTS GOOD LIFEINSURANCE AGENTS OFFER INVALUABLE SERVICE AND GUIDANCE BUT MR DAILY SAYS THAT THE LURE OF COMMISSIONS LEADS MANY TO ENCOURAGE PEOPLE TO BUY COVERAGE THEY DON'T NEED OR TO BUY MORE EXPENSIVE CASHVALUE INSURANCE WHEN TERM LIFE WOULD BE CHEAPER OR ENABLE THE BUYER TO PURCHASE MORE COVERAGE FOR THE SAME MONEY TERMLIFE INSURANCE IS PURE INSURANCE COVERAGE WITHOUT AN INVESTMENT COMPONENT THERE ARE LIMITATIONS TO WHAT THE NETWORK CAN DO IT WON'T PROVIDE DETAILED ADVICE WE HOPE PEOPLE WHO CALL ALREADY HAVE IN MIND THE TYPE OF INSURANCE THEY WANT AND THE AMOUNT SAYS MR MAURER THE SERVICE IS INTENDED FOR INSURANCE BUYERS WHO DON'T WANT TO WORK WITH A PLANNER CAN'T AFFORD TO OR ARE DOITYOURSELFERS AT LEAST INITIALLY THE SERVICE WON'T BE MUCH HELP TO PEOPLE WHO LIVE IN NEW YORK STATE NONE OF THE COMPANIES WHOSE POLICIES ARE AVAILABLE THROUGH THE SERVICE IS LICENSED IN NEW YORK CONSEQUENTLY NEW YORKERS WHO WANT LOWLOAD INSURANCE MUST STILL LOOK ELSEWHERE THE LARGEST LOWLOAD INSURER LICENSED IN NEW YORK STATE IS USAA LIFE CO SAN ANTONIO 8005318000 VERITAS 8005523553 A HOUSTON COMPANY THAT DISTRIBUTES LOWLOAD POLICIES FROM AMERITAS IN LINCOLN NEB EXPECTS A NEW YORK LICENSE TO BE APPROVED SOON 9403020044 940302 HEATED REACTION EDGY MARKETS LOOKING FOR SIGNS OF INFLATION FIND SOME AND DROP LATE1993 GROWTH WAS HIGH AND A PURCHASERS' REPORT FURTHER SPOOKED BONDS YET PRICES SEEM IN CONTROL BY WALL STREET JOURNAL STAFF REPORTERS LUCINDA HARPER THOMAS T VOGEL JR AND FRED R BLEAKLEY THE NEWS ON THE ECONOMIC FRONT YESTERDAY WAS SO GOOD THAT THE BOND AND STOCK MARKETS COULDN'T STAND IT IN THE FOURTH QUARTER OF 1993 THE COMMERCE DEPARTMENT SAYS THE ECONOMY GREW NOT AT THE 59 ANNUAL RATE IT ORIGINALLY REPORTED BUT AT 75 A PACE THAT TOPPED PRACTICALLY ALL FORECASTS AND WAS THE BEST QUARTERLY JUMP IN 10 YEARS CONSUMERS WERE BUYING MORE CORPORATIONS INVESTING MORE AND FACTORIES EXPORTING MORE THAN ANYONE HAD BELIEVED MEANWHILE THE MANUFACTURING SECTOR ACCORDING TO A PURCHASING MANAGERS' SURVEY CONTINUED TO EXPAND IN FEBRUARY BUSINESS FOR SOME COMPANIES HAD GOTTEN GOOD ENOUGH TO PUT THROUGH SOME PRICE INCREASES THE SURVEY INDICATED NOT SURPRISINGLY THE BOND MARKET SMELLED INFLATION AND PROMPTLY TOOK A SHELLACKING FEARFUL THAT INFLATION WOULD PUSH UP INTEREST RATES WHICH WOULD DEPRESS THE PRICES OF FIXEDINCOME DEBT SECURITIES BOND PRICES YESTERDAY FELL A HEFTY 15 POINTS WHICH TRANSLATES INTO A 15 DECLINE FOR A BOND WITH A FACE VALUE OF 1000 FOR MOST OF THE DAY STOCKS FOLLOWED BONDS SOUTH THE DOW JONES INDUSTRIAL AVERAGE DROPPING BY 45 POINTS AT ONE POINT BEFORE CLOSING DOWN 2279 POINTS FORGET THAT GREAT GDP GROWTH NUMBER STOCK TRADERS WORRIED THAT IF RATES WENT UP HIGHER YIELDS ON FIXEDINCOME SECURITIES MIGHT DRAW INVESTMENT MONEY OUT OF STOCKS BUT FOR ALL OF THE BLOODLETTING ON WALL STREET THE INFLATION PICTURE IS ANYTHING BUT CLEAR IT IS MURKY AND THEREFORE POSSIBLY A LITTLE MORE POSITIVE THAN YESTERDAY'S MARKET SELLOFF WOULD SUGGEST THERE'S A LOT MORE FEAR OF INFLATION THAN THERE IS INFLATION SAYS DAVID WYSS RESEARCH DIRECTOR OF DRI/MCGRAW HILL INC THE PURCHASING MANAGERS' REPORT HAS BEEN A LOUSY INDICATOR OF INFLATION I SEE VERY FEW SIGNS OF INFLATIONARY PRESSURE OTHER OBSERVERS AGREE IT'S ALL PSYCHOLOGICAL SAYS SIMON NOCERA DIRECTOR OF GLOBAL FIXEDINCOME RESEARCH AND A PORTFOLIO MANAGER AT GT CAPITAL IN SAN FRANCISCO YET PERCEPTIONS MATTER AND THE PERCEPTION IN THE BOND MARKET YESTERDAY WAS THAT THE ECONOMY MIGHT BE OVERHEATING SOME TRADERS ARE CONVINCED THAT THE HEADLONG GROWTH IN THE FOURTH QUARTER HERALDS CONTINUING INCREASES IN DEMAND FOR PRODUCTS LABOR AND OTHER RESOURCES IN THE ECONOMY AND THAT MEANS PRICES WILL RISE ECONOMISTS HOWEVER UNIFORMLY DOUBT THAT THE TORRID GROWTH PACE IS LASTING EVEN INTO THE CURRENT QUARTER FORECASTS FOR FIRSTQUARTER GROWTH TEMPERED BY EARTHQUAKES IN CALIFORNIA SNOWCLOGGED ROADS IN MUCH OF THE NATION AND HIGHER TAXES ON THE WEALTHY ARE IN THE 26TO37 RANGE FOR THE FULL YEAR ESTIMATES OF INFLATIONADJUSTED INCREASES IN THE GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE NATION RANGE FROM ABOUT 30 TO 40 THAT IS STILL HEALTHY BUT A FAR CRY FROM THE FOURTHQUARTER PACE THE ECONOMY HAS A LOT OF MOMENTUM RIGHT NOW BUT DEFINITELY NOT 75 WORTH SAYS ROGER BRINNER DIRECTOR OF US FORECASTING FOR DRI/MCGRAW HILL HE PREDICTS REAL ECONOMIC GROWTH AT A 35 ANNUAL RATE IN THE FIRST QUARTER GROWTH IN THE 1993 FOURTH QUARTER SAYS KURT KARL HEAD OF MACROECONOMIC FORECASTING FOR THE WEFA GROUP BORROWED STRENGTH FROM THE 1994 FIRST QUARTER THE QUESTION IS THE MAGNITUDE TRADE PATTERNS MUCH OF THE REVISION IN FOURTHQUARTER GDP WAS DUE TO AN IMPROVEMENT IN MERCHANDISETRADE FIGURES IN DECEMBER MORE US PRODUCTS ARE BEING SOLD ABROAD AND AS A RESULT NET EXPORTS WERE REVISED UP BY 115 BILLION CONSUMER SPENDING WAS ALSO STRONGER THAN ORIGINALLY THOUGHT RISING AT A 46 ANNUAL RATE VS THE 40 ESTIMATED EARLIER BUSINESS INVESTMENT IN CAPITAL EQUIPMENT WAS STRONGER TOO SOARING AT A 249 ANNUAL RATE ECONOMISTS CONTEND THAT THE COMPOSITION OF THAT GROWTH SUGGESTS IT CAN'T BE SUSTAINED FOR ONE THING EUROPE AND JAPAN KEY TRADING PARTNERS ARE STILL WEAK ECONOMICALLY AND ANALYSTS SAY THE US PROBABLY WON'T INCREASE EXPORTS BY MORE THAN 20 AGAIN IN THE FIRST QUARTER ALSO THE FOUL WEATHER THAT KEPT MANY CONSUMERS INSIDE MEANS THAT CONSUMER SPENDING ISN'T LIKELY TO BE AS ROBUST AND ECONOMISTS DOUBT THE HEFTY GROWTH RATE IN BUSINESS INVESTMENT WILL CONTINUE THE LABOR MARKET IS ALSO A BIG QUESTION MARK JOBS INCREASED ONLY SLIGHTLY IN JANUARY A DEVELOPMENT ATTRIBUTED TO THE WEATHER THE REPORT OF FEBRUARY'S EMPLOYMENT COMES OUT FRIDAY AND MANY EXPECT THE EARTHQUAKE AND SNOWSTORMS TO HAVE DAMPED JOB GROWTH AGAIN SOME ECONOMISTS HAVE REVISED THEIR GDP FORECASTS FOR THE YEAR SLIGHTLY UPWARD BUT MOST ARE WAITING TO SEE THE JOBS DATA YESTERDAY'S PURCHASING MANAGERS' INDEX OFFERED SOME HOPE THAT FACTORIES CONTINUED TO ADD JOBS LAST MONTH FOR THE FIRST TIME IN NEARLY FIVE YEARS THE EMPLOYMENT COMPONENT OF THE INDEX DID NOT FALL IT REGISTERED 50 INDICATING NO JOB CUTS OR ADDONS PRODUCTION ORDERS AND BACKLOGS ALL ROSE IN FEBRUARY BUT AT A LESSER RATE THAN IN JANUARY INDICATING THE MANUFACTURING SECTOR HAS COOLED A BIT BUT IS STILL GROWING THE COMMERCE DEPARTMENT ALSO SAID YESTERDAY THAT CONSTRUCTION SPENDING DECLINED AN INFLATIONADJUSTED 16 IN JANUARY THE DROP INVOLVING BOTH PUBLIC AND PRIVATE CONSTRUCTION WAS BLAMED ON BAD WEATHER CONSTRUCTION SPENDING GREW 20 IN DECEMBER SO WHERE DOES THAT LEAVE INFLATION UNQUESTIONABLY SOME COMPANIES ARE RAISING PRICES AND MANY RISES UNLIKE IN THE PAST ARE STICKING PRICING HAS SURPRISED ALL OF US IN THE CHEMICAL INDUSTRY IN 1994 SAYS AN EXECUTIVE FROM A MAJOR CHEMICAL COMPANY HE SAYS COMPANIES HAVE BEEN RAISING US PRICES SEVERAL PERCENTAGE POINTS FOR ALL MAJOR CATEGORIES OF CHEMICALS EXCLUDING CAUSTIC CHEMICALS AND CUSTOMERS HAVE ACCEPTED THE INCREASES SIMILARLY THE LINERBOARD INDUSTRY GAINED BACK SOME LOST GROUND BY RAISING PRICES TWICE SINCE LAST OCTOBER THE LATEST INCREASE A HEFTY 10 BRINGS THE PRICE PER TON TO 340 THE PRICE OF LINER BOARD WHICH WAS 410 A TON IN 1989 IS A GOOD INDICATOR OF ECONOMIC HEALTH BECAUSE A BROAD ARRAY OF INDUSTRIES USE LINERBOARD BOXES FOR SHIPPING WESTVACO CORP AND UNION CAMP CORP TWO MAJOR SUPPLIERS SAY THEIR CUSTOMERS HAVE PAID THE NEW PRICES WITHOUT MUCH GRUMBLING ECONOMIST MICHAEL COSGROVE EDITOR OF THE ECONOCLAST SEES ALL THIS AS AN INFLATION ALARM WHAT THE PURCHASINGMANAGERS REPORT AND OTHER MAJOR INDICATORS SUGGEST IS THAT WE ARE IN FOR A PERIOD OF RISING PRICES HE SAYS ALTHOUGH HE HASN'T RAISED HIS 1994 INFLATION FORECAST FROM 35 WHICH IS HIGHER THAN MANY ESTIMATES HE BELIEVES CONTINUED PRESSURE FROM PRODUCER PRICES COULD WELL CAUSE CONSUMER PRICES TO BE RISING AT AN ANNUAL RATE OF 4 BY YEAR END BUT MR COSGROVE APPEARS TO BE IN THE MINORITY BRUCE STEINBERG AN ECONOMIST AT MERRILL LYNCH & CO SAYS FEW INDUSTRIES ARE LIKELY TO MOVE CLOSE ENOUGH TO CAPACITY THIS YEAR TO CAUSE PRODUCTION BOTTLENECKS AND SIGNIFICANTLY HIGHER PRICES MR STEINBERG ALSO NOTES THAT UNIT LABOR COSTS WHICH DIRECTLY AFFECT THE PRICES CONSUMERS PAY FOR GOODS ARE DECLINING IN TESTIMONY BEFORE A CONGRESSIONAL COMMITTEE LAST WEEK FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ACKNOWLEDGED THAT SOME PRICES ARE RISING BUT HE SAID THERE IS NO REASON TO BELIEVE THE US IS IN THE MIDST OF AN INFLATION OUTBREAK THE PURCHASING MANAGERS' REPORT HAS THE MARKETS IN AN UPROAR WHICH I THINK IS INAPPROPRIATE SAYS DONALD STRASZHEIM ALSO A MERRILL LYNCH ECONOMIST THERE IS PLENTY OF UNUSED LABOR AND UNUSED CAPACITY OUT THERE THE FUNDAMENTALS ON INFLATION HAVE NOT DETERIORATED WHAT'S MORE FASTGROWING SMALL COMPANIES SAY THEY STILL ARE HAVING DIFFICULTY GETTING PRICE INCREASES TO STICK ACCORDING TO A SURVEY BY COOPERS & LYBRAND RELEASED YESTERDAY NEARLY HALF OF THE 386 CHIEF EXECUTIVES INTERVIEWED IN JANUARY SEE THIS HOLDING DOWN THEIR COMPANIES' GROWTH OVER THE NEXT 12 MONTHS NOTABLY THE PRICING COMPONENT OF THE PURCHASING MANAGERS' INDEX TENDS TO PICK UP PRICING PRESSURES THAT WILL OCCUR SIX TO EIGHT MONTHS DOWN THE ROAD MORE IMMEDIATE MEASURES OF INFLATION STILL APPEAR QUITE TAME OVERALL CONSUMER PRICES WERE UNCHANGED IN JANUARY AND THE FIXED WEIGHTED PRICE INDEX THE BROADEST MEASURE OF INFLATION INCREASED AT ONLY A 23 ANNUAL RATE IN THE FOURTH QUARTER IN ITS GDP REPORT YESTERDAY THE COMMERCE DEPARTMENT REVISED THE INFLATION COMPONENT UPWARD ONLY SLIGHTLY ALL OF THIS OF COURSE COULD CHANGE QUICKLY FOR THE MOMENT THOUGH THE CLINTON ADMINISTRATION IS STICKING TO ITS INFLATION FORECAST FOR THE YEAR 30 FOURTH QUARTER OVER FOURTH QUARTER COMPARED WITH 28 LAST YEAR SENIOR OFFICIALS YESTERDAY STRESSED THE NEED TO LOOK AT SEVERAL MONTHS OF NUMBERS BEFORE CONCLUDING A TREND OF HIGHER PRICES HAD TAKEN HOLD BUT TELL THAT TO THE BOND MARKET MOST TRADERS SAY THEY ARE PERPLEXED THEY SAY THEY SEE LITTLE REASON FOR INVESTORS TO WORRY ABOUT RISING INFLATION THOUGH THOSE INVESTORS ARE CLEARLY QUITE CONCERNED ULTIMATELY THE BEARISH PSYCHOLOGY RUNS AGAINST THE ECONOMIC FUNDAMENTALS SAYS MR NOCERA OF GT CAPITAL MY FUNDAMENTAL VIEW OF THE WORLD HASN'T CHANGED BUT THE PSYCHOLOGY OF THE BOND MARKETS HAS SINCE FEB 3 THE DAY BEFORE THE FED RAISED SHORTTERM INTEREST RATES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND HAS PLUNGED NEARLY SIX POINTS AN INVESTOR WHO BOUGHT A BOND THAT DAY AND SOLD IT YESTERDAY WOULD HAVE LOST MORE THAN 6 IN PRINCIPAL AT THE SAME TIME THE YIELD FOR THAT BOND HAS RISEN TO 677 THE HIGHEST LEVEL SINCE LAST JUNE YIELDS MOVE INVERSELY TO PRICES BECAUSE AN INVESTOR RECEIVES THE SAME COUPON PAYMENT FOR A FIXEDRATE BOND NO MATTER WHAT PRICE HE PAID FOR THE BOND THE MARKET IS STILL SPOOKED SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC IF YOU ASK ME IF INFLATION IS EXPECTED TO BE A PROBLEM THIS YEAR I'D SAY NO BUT INVESTORS ARE AT LEAST ALLOWING FOR THE FACT THAT THE ECONOMY IS GROWING MORE QUICKLY THAN MOST PEOPLE HAD ASSUMED THAT IT WOULD HE SAYS THERE HAS BEEN SOME SPECULATION THAT HEDGE FUNDS ARE PARTLY TO BLAME FOR THE HUGE DROPS IN THE BOND MARKET RECENTLY THAT IS BECAUSE MANY OF THESE BIG PRIVATE INVESTMENT FUNDS BORROW MONEY IN THE FORM OF SHORTTERM MARGIN LOANS IN ORDER TO MAXIMIZE THEIR RETURNS THIS RISKY STRATEGY WORKED BEAUTIFULLY AS BOND YIELDS DROPPED PRICES ROSE AND SHORTTERM INTEREST RATES REMAINED LOW BUT WHEN THE FED BEGAN RAISING SHORTTERM RATES THE COSTS OF CARRYING THESE LOANS ROSE TOO MEANWHILE THE VALUE OF MANY OF THE BONDS THAT THESE FUNDS HAD BOUGHT WITH THE BORROWED FUNDS DROPPED THE HEDGE FUNDS WERE HIT BY A DOUBLE WHAMMY AND MANY OF THEM NOW ARE BELIEVED TO BE SELLING BONDS HAND OVER FIST ANOTHER CULPRIT HAS BEEN SOME WRONG CALLS ON WALL STREET SOME TRADERS INCLUDING GOLDMAN SACHS & CO WERE FORECASTING LOWER INTEREST RATES THIS YEAR SO MANY OF THESE DEALERS LOADED UP ON TREASURY SECURITIES IN ANTICIPATION OF ANOTHER RALLY WHEN RATES ROSE THESE HUGE INVENTORIES OF TREASURY BONDS STARTING LOSING MILLIONS OF DOLLARS IN VALUE AND BOND TRADERS BEGAN UNLOADING THEM AS A RESULT THE FEAR FACTOR HAS STAYED PRETTY HIGH SAYS JOHN COSTAS HEAD OF GOVERNMENT BOND TRADING AT CS FIRST BOSTON CORP IN THE END BOND TRADERS ARE GOING WITH THE FLOW MORE AND MORE OF THEM MR COSTAS SAYS NOW EXPECT INTEREST RATES TO RISE EVEN THOUGH THEY DON'T SEE SEVERE INFLATION ON THE HORIZON THAT IS THE PSYCHOLOGICAL MOMENTUM OF THE MARKET AT WORK THE TRADERS SAY MR COSTAS SAYS THE EMERGING CONVENTIONAL WISDOM IS THAT THE YIELD ON THE 30YEAR TREASURY BOND WILL STABILIZE AT ABOUT 725 LATE YESTERDAY THE 30YEAR BOND YIELDED 678 WHAT DOES ALL THAT MEAN FOR THE AVERAGE WORKING AMERICAN SINCE THE FED TIGHTENED SHORTTERM RATES THE AVERAGE RATE FOR A 30YEAR FIXEDRATE MORTGAGE HAS RISEN TO 755 FROM 708 SAYS HSH ASSOCIATES OF BUTLER NJ A PUBLISHER OF MORTGAGE DATA FOR A NEW HOME BUYER WHO IS BORROWING 200000 THAT TRANSLATES INTO A 6392 HIGHER MONTHLY PAYMENT JOHN BUSSEY CONTRIBUTED TO THIS ARTICLE HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS 9403020043 940302 HEARD ON THE STREET NEW MORGAN STANLEY CONTRACT LETS INVESTORS BET BASKET OF SHORTSELL' FAVORITES WILL RISE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HERE COMES ANOTHER SLAP IN THE FACE FOR INVESTORS WHO LIKE TO SHORTSELL STOCKS BETTING THAT THEIR PRICE WILL FALL THIS WEEK MORGAN STANLEY STARTED OFFERING INSTITUTIONAL CLIENTS A CHANCE TO BET ON A RISE IN THE PRICES OF 32 STOCKS THAT ARE PERENNIAL FAVORITES OF THE BEARISH SHORTSELLERS THIS BASKET OF STOCKS INCLUDES SUCH SPECULATIVE BETS AS US SURGICAL NOW AT 17 1/2 CHECKERS DRIVEIN RESTAURANTS 8 1/8 AND PRESIDENT RIVERBOAT CASINOS 16 7/8 WHAT MORGAN STANLEY IS PEDDLING IS A SOCALLED DERIVATIVE SECURITY WHICH IS WALL STEET LINGO FOR A FINANCIAL INSTRUMENT WHOSE VALUE ZIGZAGS IN LINE WITH STOCKS BONDS CURRENCIES OR THE LIKE IN THIS CASE MORGAN STANLEY IS SELLING A SPECIALLY DESIGNED OPTIONS CONTRACT THAT GIVES THE INVESTOR THE RIGHT TO BUY THE GROUP OF STOCKS AT SOME POINT IN THE FUTURE AT THE MARKET PRICE WHEN THE CONTRACT IS WRITTEN IF THE GROUP OF STOCKS HAS RISEN WHEN THE CONTRACT EXPIRES THE INVESTOR WINS IT MAY SOUND COMPLICATED BUT THE IDEA BEHIND THE NEWFANGLED OPTIONS CONTRACT IS RELATIVELY SIMPLE IN THE RECENT PAST SHORTSELLERS HAVE BEEN DEAD WRONG IN MANY OF THEIR BETS AGAINST THE STOCK MARKET SO THE THINKING GOES ONE WAY TO MAKE MONEY IS TO MAKE A WHOLESALE BET AGAINST SOME OF THE STOCKS SHORTSELLERS HATE THE MOST IT'S A GAME THAT HAS WORKED IN THE PAST BUT WILL IT WORK NOW AMID A STOCKMARKET SETBACK INDEED SOME MARKET PROS SAY THE MORGAN STANLEY PRODUCT MAY EVEN BE A SIGN THAT THE STOCK MARKET HAS PEAKED OFTEN INVESTORS LOSE SIGHT OF FUNDAMENTAL INVESTMENT PRINCIPLES AS A MARKET IS TOPPING SAYS JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER OF DILLON READ THEY BEGIN EXTRAPOLATING PRIOR INVESTMENT PERFORMANCE INTO THE HEREAFTER BUYING MORE AND MORE SPECULATIVE INVESTMENTS THE BOTTOM LINE SAYS MR MCALINDEN IS THAT PEOPLE ARE RUNNING OUT OF INVESTMENT IDEAS SO THEY'RE CAPITALIZING INSTEAD ON SQUEEZING THE SHORTS NOT SURPRISINGLY SHORTSELLERS WHOSE TRACK RECORDS HAVE BEEN DISMAL IN RECENT YEARS GROANED AT THE NEWS THIS IS A MOST CYNICAL ATTEMPT TO PICK STOCKS WITH THE BIGGEST SHORT INTEREST AND SQUEEZE THEM SAID MICHAEL HARKINS MANAGER OF GRACY FUND A NEW YORK HEDGE FUND THAT FORMERLY CONCENTRATED ON SHORTSELLING A MORGAN STANLEY SPOKESWOMAN DECLINED TO COMMENT EXCEPT TO SAY THAT THE DESIGNER OPTIONS CONTRACTS AREN'T MEANT FOR EVERYONE THE PRODUCT IS BEING MARKETED MAINLY TO INSTITUTIONAL INVESTORS BY A TEAM OF MORGAN STANLEY SALESMEN INCLUDING NEW DERIVATIVES HOTSHOT BILL LEVY WHO LEFT KIDDER PEABODY TO JOIN MORGAN STANLEY IN RECENT WEEKS HE'S A CREATIVE GUY AND A GOOD SALESMAN SAYS GRACY FUND'S MR HARKINS LIMITED THOUGH THE OFFER MAY BE THE NEW OPTIONS CONTRACT COULD PROVE A BIG SELLER EVEN SOME SHORTSELLERS SAY THEY HAVE BECOME CONVERTS OF DESIGNER OPTIONS CONTRACTS WE'VE BECOME ACCIDENTAL CONVERTS SAYS MR HARKINS WHO SAYS HIS FUND BEGAN BUYING PUT OPTIONS ON GROUPS OF STOCKS THIS SUMMER I CAN'T SEE WHY ANYONE WOULD BE SHORT STOCKS WHEN THEY CAN DO THIS INSTEAD PUT OPTIONS CONFER ON THE HOLDER THE RIGHT TO SELL A STOCK AT THE AGREEDUPON PRICE THE OTHER MAJOR TYPE OF OPTION IS A CALL OR A RIGHT TO BUY WALL STREET INCREASINGLY IS DREAMING UP SOCALLED DESIGNER OPTIONS CONTRACTS SO THAT BIG INSTITUTIONS CAN MAKE A LOWCOST BET ON A GROUP OF STOCKS UNLIKE TRADITIONAL OPTIONS CONTRACTS THESE AREN'T LISTED ON STOCK EXCHANGES NOR MUST THEIR SALE BE CLEARED BY THE SECURITIES AND EXCHANGE COMMISSION INSTEAD THE INVESTOR BUYS THE OPTIONS CONTRACT FROM THE WALL STREET FIRM WHICH AGREES TO SELL OR BUY THE GROUP OF STOCKS FROM THE INVESTOR AT A SPECIFIED PRICE AT THE EXPIRATION DATE IN THE CASE OF THE SHORT SQUEEZE OPTION INVESTORS ARE BUYING THE RIGHT TO BUY THE GROUP OF 32 STOCKS FROM MORGAN STANLEY THREE MONTHS FROM NOW AT THE MARKET PRICE WHEN THE CONTRACT WAS WRITTEN IF THE BASKET AN EQUAL DOLLAR AMOUNT OF EACH STOCK RISES INVESTORS GET A BARGAIN IF THE STOCKS' PRICES FALL INVESTORS LOSE ONLY WHAT THEY PAID FOR THE OPTIONS CONTRACT IN AN INITIAL NOTICE TO CLIENTS MORGAN DIDN'T SET A PRICE FOR THE CONTRACT IN THE MEMO TO CLIENTS MORGAN SAID IT SELECTED STOCKS THAT WERE EXTREMELY DIFFICULT TO BORROW HAVE HAD THE GREATEST DECREASE IN PRICE ON A PERCENTAGE BASIS SINCE 1/1/94 AND TRADE MORE THAN 50000 SHARES PER DAY MORGAN IS CALLING THE CONTRACT THE DIFFICULT BORROW/PRICE DECLINE STOCK INDEX TRADE THE STOCKS INCLUDED IN THE CONTRACT ARE WILSHIRE TECHNOLOGIES COPLEY PHARMACEUTICALS QUALITY PRODUCTS EDUCATION ALTERNATIVES INTERACTIVE NETWORK PAIRGAIN TECHNOLOGIES MEDIA VISION TECHNOLOGIES SAGE TECHNOLOGIES MOBILE TELECOMMUNICATIONS CHECKERS DRIVEIN TOKOS MEDICAL S3 INC US SURGICAL PRESIDENT RIVERBOAT CASINOS 50OFF STORES PICTURETEL CORP NATIONAL VISION ASSOCIATES BROADBAND TECHNOLOGIES EPITOPE INC BORLAND INTERNATIONAL HEART TECHNOLOGY INC FASTCOMM COMMUNICATIONS MARVEL ENTERTAINMENT ABBEY HEALTHCARE SOMATOGEN INC ADVANTA CORP CML GROUP IWERKS ENTERTAINMENT SCIMED LIFE SYSTEMS PHOENIX RE SOFAMORE/DANEK GROUP AND BARNES & NOBLE 9403020042 940302 THE PHILANTHROPISTS' AGENDA BY STANLEY ROTHMAN EVERY YEAR AMERICAN PHILANTHROPIC FOUNDATIONS GIVE AWAY BILLIONS OF DOLLARS TO VARIOUS WORTHWHILE PROJECTS MORE PER CAPITA THAN ANY OTHER COUNTRY IN THE WORLD WHAT IS THE POLITICAL OUTLOOK OF THESE FOUNDATIONS ACCORDING TO LEFTWING ACADEMICS AND ACTIVISTS PHILANTHROPIC FOUNDATIONS WERE CREATED TO PRESERVE CAPITALISM AND ARE TODAY CONTROLLED BY CONSERVATIVE SUPPORTERS OF A CONSERVATIVE POLITICAL ORDER THERE IS A KERNEL OF TRUTH IN THIS ASSERTION BUT ONLY A KERNEL MY COAUTHORS ALTHEA NAGAI AND ROBERT LERNER AND I HAVE JUST PUBLISHED A STUDY OF FOUNDATION TRUSTEES SHOWING THAT THE MAJORITY OF THEM ARE POLITICALLY MODERATE OR CONSERVATIVE AS MEASURED BY A BATTERY OF QUESTIONS WE ADMINISTERED BUT WE ALSO FOUND THAT THE ATTITUDES OF THE FOUNDATION WORLD'S MOVERS AND SHAKERS ARE MORE SHARPLY POLARIZED THAN THOSE OF OTHER LEADERSHIP GROUPS THE TRUSTEES WHO ARE LIBERAL ARE VERY LIBERAL INDEED WHAT IS MORE MOST CONSERVATIVE OR MODERATE FOUNDATION TRUSTEES SHY AWAY FROM PUBLICPOLICY ISSUES THEY WOULD MUCH RATHER GIVE THEIR MONEY TO UNIVERSITIES OR HOSPITALS OR ORCHESTRAS THAN TO EXPLICITLY POLITICAL ACTIVITIES IF WE EXAMINE ONLY THE GRANTS OF MAJOR FOUNDATIONS TO INDIVIDUALS AND GROUPS INVOLVED WITH PUBLICPOLICY ISSUES THE POLITICAL OUTLOOK OF THE FOUNDATION WORLD CHANGES DRAMATICALLY SUCH AN ANALYSIS DEMONSTRATES THAT LIBERAL FOUNDATIONS OUTNUMBER CONSERVATIVE ONES BY ABOUT 3 TO 1 AND THE AMOUNT OF MONEY DISBURSED TO LIBERAL GRANT APPLICANTS IS ABOUT FOUR TIMES AS GREAT AS THAT DISBURSED TO CONSERVATIVES IN OUR STUDY WE CLASSIFIED GRANTS AS LIBERAL OR CONSERVATIVE ON THE BASIS OF READING A SUMMARY OF THE GRANT PROPOSAL AND ASSESSING THE IDEOLOGY OF THE GROUP TO WHICH THE FUNDS WERE GIVEN WE ALL KNOW THE IDENTITY OF THE LARGE LIBERAL FOUNDATIONS LIKE THE FORD FOUNDATION AND THE JOHN D AND CATHERINE T MACARTHUR FOUNDATION NO CONSERVATIVE FOUNDATION EVEN APPROACHES FORD IN THE AMOUNT OF MONEY DISBURSED FOR PUBLICPOLICY ISSUES IT IS CLEAR THEN THAT FOUNDATIONS WITH PUBLICPOLICY CONCERNS ARE LIKELY TO HAVE A DISTINCT LIBERAL TILT BUT THIS IS RARELY ACKNOWLEDGED BY THE FOUNDATIONS THEMSELVES FOUNDATION LIBERALS ARE CONVINCED BY THE ECHOES THEY RECEIVE FROM THE INTELLECTUAL COMMUNITY THAT THEY REPRESENT ONLY SIMPLE DECENCY AS AGAINST THE IDEOLOGY AND SELFISHNESS OF THEIR OPPONENTS THE CONVENTIONAL WISDOM ABOUT THE CONSERVATISM OF MOST FOUNDATIONS WAS PROBABLY MORE OR LESS TRUE UNTIL THE 1950S BUT IT CHANGED RAPIDLY AFTER THAT MY COLLEAGUES AND I ONCE BELIEVED THAT THE PROFESSIONALIZATION OF THE STAFFS OF FOUNDATIONS PLAYED A SUBSTANTIAL ROLE IN THIS LEFTWARD SHIFT PROFESSIONAL STAFF MEMBERS WE THOUGHT WERE MORE LIBERAL THAN TRUSTEES AND THEY PUSHED AND PULLED THE TRUSTEES IN THAT DIRECTION THE EVIDENCE TODAY POINTS IN THE OPPOSITE DIRECTION LIBERAL FOUNDATION TRUSTEES AND OFFICERS ARE MORE LIKELY TO RELY ON STAFF PEOPLE THAN CONSERVATIVE FOUNDATION TRUSTEES AND THEY CHOOSE STAFFERS WHO AGREE WITH THEM THE CHANGE IN FOUNDATIONS IS IN FACT A REFLECTION OF GENERATIONAL CHANGE IN MANY CASES IT IS A RESULT OF A SHIFT IN THE IDEOLOGY OF THE CHILDREN AND GRANDCHILDREN OF THE ORIGINAL DONORS AND OF THE NEWER MEMBERS OF BOARDS OF TRUSTEES ONE BY ONE ONCECONSERVATIVE FOUNDATIONS LIKE THE PEW CHARITABLE TRUSTS HAVE MOVED LEFTWARD AS LIBERAL DOMINANCE HAS INCREASED LIBERAL AND CONSERVATIVE FOUNDATIONS HAVE CHANGED THEIR EMPHASES IN THE OLD DAYS CONSERVATIVE FOUNDATIONS WERE NOT INCLINED TO GIVE MONEY TO SOCIAL SCIENCE RESEARCH WHICH THEY REGARDED AS AKIN TO SOCIALISM CONTRARIWISE LIBERAL FOUNDATIONS LIKE FORD DID FUND SUCH RESEARCH BELIEVING THAT IT WAS REQUISITE TO POLITICAL AND SOCIAL CHANGE TODAY THE SITUATION IS REVERSED IN THE LATE 1960S AND 1970S CONSERVATIVES BEGAN TO TURN TO SOCIAL SCIENCE CONVINCED THAT SOCIAL SCIENCE STUDIES WOULD JUSTIFY THEIR VIEWS AND PROVIDE CLUES TO APPROPRIATE ALTERNATIVE FUTURES MEANWHILE LIBERAL FOUNDATIONS BEGAN TO GIVE RELATIVELY MORE MONEY TO ACTIVIST GROUPS BELIEVING ONE SUSPECTS THAT WE UNDERSTAND THE WORLD WELL ENOUGH THE POINT NOW IS TO CHANGE IT OF COURSE FOUNDATION GRANTS AREN'T THE WHOLE STORY WHAT ABOUT INDIVIDUAL DONORS WHO DISBURSE OVER 100 BILLION A YEAR TO VARIOUS CAUSES CERTAINLY FEW THINK TANKS SHARE THE ABILITY OF THE CONSERVATIVE HERITAGE FOUNDATION TO RAISE LARGE AMOUNTS OF MONEY FROM SUCH PEOPLE DOES PRIVATE GIVING TILT THE POLITICAL BALANCE BACK TO THE RIGHT NOT AT ALL IN OUR RESEARCH WE SCRUPULOUSLY CLASSIFIED ALL GENERAL PUBLIC POLICY FOUNDATION GRANTS TO UNIVERSITIES AS NEUTRAL BUT THE EVIDENCE IS UNEQUIVOCAL SOCIAL SCIENCE AND HUMANITIES FACULTIES IN AMERICAN COLLEGES AND UNIVERSITIES ARE OVERWHELMINGLY LIBERAL IN THEIR SOCIAL AND POLITICAL ATTITUDES IN A 1990 CARNEGIE STUDY THE LATEST AVAILABLE 70 OF HUMANITIES PROFESSORS CLASSIFIED THEMSELVES AS LIBERAL COMPARED WITH ONLY 20 WHO IDENTIFIED THEMSELVES AS CONSERVATIVE THE ATTITUDES OF SOCIAL SCIENCE FACULTY MEMBERS WERE A BIT MORE SKEWED ABOUT 70 ARE SELFDESCRIBED LIBERALS AS COMPARED WITH ONLY 15 SELFDESCRIBED CONSERVATIVES WE SUSPECT THAT THIS ACADEMIC WORK MORE THAN OFFSETS THE EFFECTS OF INDIVIDUAL GIVING THREE OR FOUR CONSERVATIVE THINK TANKS CANNOT COMPETE WITH THE PRODUCTION OF HUNDREDS OF UNIVERSITIES WHOSE FACULTIES PRODUCE STUDIES OF AMERICAN INSTITUTIONS AND WHOSE GRADUATES ARE LIKELY TO LEARN ABOUT SOCIAL AND POLITICAL SYSTEMS FROM A LIBERAL POINT OF VIEW IT IS CERTAINLY NO SIN FOR PUBLIC POLICY FOUNDATIONS TO HAVE A POLITICAL OUTLOOK BUT IT IS IMPORTANT THAT THE PREDOMINANCE OF LIBERAL OPINION BE RECOGNIZED AS SUCH AS IT IS LIBERAL FOUNDATIONS CONVINCE THEMSELVES THAT THEY ARE COMMITTED IN SOME NEUTRAL APOLITICAL WAY TO DEMOCRACY AND EMPOWERMENT OF THE PEOPLE BUT IN FACT THEY HAVE SPENT THEIR TAXSHELTERED MONEY IN WAYS THAT HAVE SUBSTANTIALLY CHANGED AMERICAN SOCIETY IN ACCORD WITH A LIBERAL OR LEFTIST AGENDA FOUNDATIONS HAVE PLAYED A MAJOR ROLE IN MOVING HIGHSCHOOL HISTORY TEXTS IN A FEMINIST AND MULTICULTURAL DIRECTION FOR EXAMPLE THEY HAVE ALSO FUNDED VARIOUS PUBLICLAW GROUPS WHICH HAVE ALTERED THE SOCIAL AND POLITICAL ETHOS OF OUR SOCIETY A CASE IN POINT IS THE FORD FOUNDATION'S FUNDING OF THE MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATION FUND WHICH ENCOURAGES MEXICANAMERICANS TO DEFINE THEMSELVES AS AN OPPRESSED RACIAL GROUP READ VICTIMS ENTITLED TO LEGAL REMEDIES FORD FOUNDATION FUNDS GIVE MALDEF ENORMOUS POTENTIAL INFLUENCE IN THE MEXICANAMERICAN COMMUNITY TO SOME SUCH EFFORTS ARE THE WORK OF AN ELITE USING ORDINARY PEOPLE TO ESTABLISH THEIR OWN VISION OF THE FUTURE IN ANY CASE THAT VISION IS ANYTHING BUT POLITICALLY NEUTRAL THE INDEPENDENCE OF AMERICA'S FOUNDATIONS IS OF COURSE TO BE DEFENDED WHATEVER THEIR POLITICAL AGENDAS BUT IT IS TIME FOR THEM TO EXAMINE THE FACILE ASSUMPTIONS ABOUT THEIR IDEOLOGICAL INNOCENCE THAT HAVE GUIDED THEIR BEHAVIOR IN THE PAST AND DO SO NOW MR ROTHMAN DIRECTOR OF THE CENTER FOR THE STUDY OF SOCIAL AND POLITICAL CHANGE AT SMITH COLLEGE IS COAUTHOR OF GIVING FOR SOCIAL CHANGE JUST PUBLISHED BY PRAEGER 9403020041 940302 CLINTON SHOULD LOOK BEYOND UKRAINE'S WOES BY ADRIAN KARATNYCKY ON THE EVE OF HIS VISIT TOMORROW TO THE US UKRAINIAN PRESIDENT LEONID KRAVCHUK LEADS A COUNTRY WRACKED BY POLITICAL STRUGGLE AND A MOUNTING ECONOMIC CRISIS INFLATION IN 1993 STOOD AT 6500 TOPPED ONLY BY THAT OF RUMP YUGOSLAVIA AN ENERGY CRISIS HAS LED TO A SHARP CURTAILMENT IN INDUSTRIAL OUTPUT THE FURLOUGHING OF HUNDREDS OF THOUSANDS OF WORKERS AND THE CLOSING DOWN OF UNIVERSITIES FOR PART OF THE WINTER MEANWHILE MR KRAVCHUK WHO ONLY A FEW WEEKS AGO AGREED TO GIVE UP UKRAINE'S ENTIRE NUCLEAR ARSENAL IS BEGINNING TO LOOK LIKE A POLITICAL CORPSE ON FEB 24 UKRAINE'S PARLIAMENT THE RADA REBUFFED MR KRAVCHUK BY A VOTE OF 253 TO 1 REJECTING HIS CALL TO POSTPONE A PRESIDENTIAL ELECTION NOW SET FOR JUNE 26 IT IS UNCERTAIN WHETHER MR KRAVCHUK WILL RUN FOR REELECTION HE HAS SAID HE WILL NOT IF HE RUNS HE IS ALL BUT CERTAIN TO BE REJECTED BY UKRAINE'S ELECTORATE PRESIDENT CLINTON IS LIKELY MEETING WITH A LAME DUCK WITH MR KRAVCHUK IN A WEAK POSITION A SHARP POLITICAL STRUGGLE HAS ERUPTED WITHIN WHAT IS CALLED BY UKRAINIANS THE PARTY OF POWER MADE UP OF EXCOMMUNIST APPARATCHIKS THE RULING ELITE IS DIVIDED INTO FOUR FACTIONS THE DWINDLING FORCES OF THE PRESIDENT A BLOC OF AGRARIAN BOSSES AND LOCAL GOVERNMENT LEADERS WHO BACK THE NATIONALIST PARLIAMENTARY SPEAKER IVAN PLYUSHCH A BLOC OF CORRUPT RED DIRECTORS FROM UKRAINE'S RUSSIANSPEAKING EAST HEADED BY ACTING PRIME MINISTER YUKHYM ZVYAHILSKY AND ECONOMIC REFORMERS HEADED BY THE POPULAR EXPRIME MINISTER LEONID KUCHMA THE STRUGGLE AT THE TOP HAS CREATED A POWER VACUUM WITH MARCH 27 PARLIAMENTARY ELECTIONS APPROACHING HARDLINE FORCES APPEAR TO HAVE LAUNCHED A WAVE OF POLITICAL TERROR DIRECTED AT RUKH UKRAINE'S LARGEST DEMOCRATIC PARTY RUKH'S CAMPAIGN MANAGER MYKHAYLO BOYCHYSHYN HAS NOT BEEN SEEN SINCE HIS ABDUCTION ON JAN 15 THERE HAVE BEEN BREAKINS AND VANDALIZATIONS OF FOUR RUKH PARTY OFFICES AROUND THE COUNTRY BEATINGS OF CANDIDATES FOR PARLIAMENT BOMBINGS DIRECTED AT THE PROPERTY OF RUKH ACTIVISTS AND AN ATTEMPTED ABDUCTION OF THE DAUGHTER OF A RUKH LEADER ON A RECENT TRIP TO KIEV I TOO ENCOUNTERED UKRAINE'S CHILLY POLITICAL ATMOSPHERE OFFICIALS AT THE MINISTRY OF INTERNAL AFFAIRS CONFISCATED MY PASSPORT AND HAULED ME INTO THEIR OFFICES FOR A TWOHOUR DISCUSSION WHAT MADE THE EPISODE NOTABLE WAS THAT THE AUTHORITIES HAD COME LOOKING FOR ME BY NAME AT A PLACE I WAS TEMPORARILY VISITING AND ABOUT WHICH THEY COULD HAVE LEARNED ONLY THROUGH INFORMANTS WIRETAPPING OR SURVEILLANCE IN SURVEYING UKRAINE'S UNSETTLED POLITICAL WATERS MR CLINTON AND HIS ADVISERS MIGHT BE TEMPTED TO CONCLUDE THAT LITTLE CAN BE DONE TO REVERSE THESE WORRYING TRENDS EVEN THE CIA THE WASHINGTON POST REPORTS IS TELLING THEM THAT UKRAINE MIGHT BREAK UP INTO SEVERAL PARTS BUT THE CIA'S DIRE PREDICTIONS ARE OFFBASE RELIABLE PUBLIC OPINION POLLS SHOW LITTLE ENTHUSIASM FOR THE ECONOMICALLY DISTRESSED EXPERIMENT WITH STATEHOOD BUT THEY ALSO REVEAL NO SENTIMENT FOR DOMINATION BY MOSCOW MOREOVER POLITICAL LEADERS IN UKRAINE'S RUSSIANSPEAKING EAST BELIEVE THEY HAVE A BETTER CHANCE OF ADVANCING THEIR INTERESTS IN NEARBY KIEV THAN IN REMOTE MOSCOW EVEN ETHNIC RUSSIANS WHO HAVE LIVED IN UKRAINE'S EAST FOR GENERATIONS CONSIDER THEMSELVES TO BE CITIZENS OF UKRAINE NOT RUSSIA THE GREATEST THREAT TO UKRAINE'S TERRITORIAL INTEGRITY DOES NOT COME FROM INSTABILITY WITHIN IT COMES FROM RUSSIA UKRAINIAN OFFICIALS ASSERT THAT RUSSIA'S FOREIGN INTELLIGENCE SERVICE IS ENGAGED IN ACTIVE MEASURES TO SUPPORT REGIONAL SEPARATIST GROUPS THE MAJOR TROUBLE SPOT IS CRIMEA WHERE A MAJORITY RUSSIAN POPULATION SEEKS AN EXIT FROM UKRAINE AS DEPUTY FOREIGN MINISTER BORIS TARASYUK TOLD ME IN KIEV IF RUSSIA MOVES TO TAKE CRIMEA UKRAINE WILL REMAIN A NUCLEAR STATE HE AND OTHER UKRAINIAN LEADERS SEEK AN ENHANCED US ROLE IN PRESSING RUSSIA TO FORGO ANY TERRITORIAL CLAIMS ANYONE SURVEYING THE UNCERTAIN STATE OF UKRAINE'S POLITICAL AND ECONOMIC LIFE MIGHT CONCLUDE THAT THE COUNTRY IS A BASKET CASE YET UKRAINE'S TUMULTUOUS POLITICAL CLIMATE PRESENTS A RARE OPPORTUNITY TO PROMOTE FUNDAMENTAL CHANGE INDEED WITH ELECTIONS FOR PARLIAMENT LATER THIS MONTH AND FOR PRESIDENT THIS SUMMER THERE IS A DISTINCT OPPORTUNITY FOR UKRAINE TO BREAK FREE FROM THE SHACKLES OF THE OLD NOMENKLATURA ESPECIALLY SINCE POLLS SHOW THE REFORMIST MR KUCHMA LEADING IN THE PRESIDENTIAL STAKES WHEN MR CLINTON HOSTS MR KRAVCHUK ON FRIDAY HE MUST MAKE CLEAR TO HIM THAT THE USUKRAINE RELATIONSHIP AND ANY HOPE FOR SUBSTANTIAL WESTERN AID IS BASED AS MUCH ON UKRAINE'S ADHERENCE TO DEMOCRACY AND ECONOMIC REFORM AS ON THE DISMANTLING OF SOVIETERA NUCLEAR WEAPONS COMING AT THIS UNCERTAIN TIME IN KIEV THE MESSAGE MUST BE LOUD AND CLEAR IN THE END NO MATTER HOW BAD THINGS MAY LOOK IN UKRAINE MR CLINTON AND HIS FOREIGNPOLICY TEAM MUST BEAR IN MIND EVENTS IN RUSSIA WHERE FOREIGN POLICY IS TURNING ASSERTIVELY ANTIWESTERN WHERE HARDLINE NEOCOMMUNISTS AND NEOFASCISTS DOMINATE THE PARLIAMENT AND WHERE ECONOMIC REFORM HAS STALLED AS RUSSIA REVERTS TO AN IMPERIAL STANCE UKRAINE A PROWESTERN COUNTRY WITH 52 MILLION CITIZENS AND EUROPE'S SECONDLARGEST MILITARY FORCE IS LIKELY TO BECOME AN INCREASINGLY IMPORTANT FACTOR IN THE PEACE AND STABILITY OF EUROPE MORE IMPORTANT POOR AND CONFLICTRIDDEN UKRAINE STILL HAS A CHANCE TO EMERGE AS A NORMAL DEMOCRATIC COUNTRY AT A TIME WHEN RUSSIA'S COURSE LOOKS INCREASINGLY IN DOUBT MR KARATNYCKY IS EXECUTIVE DIRECTOR OF FREEDOM HOUSE 9403020040 940302 BUSINESS BRIEF SUNBEAMOSTER CO FIRM'S LARGEST SHAREHOLDER TO SELL 10 MILLION SHARES SUNBEAMOSTER CO SAID ITS LARGEST SHAREHOLDER SUNBEAMOSTER EQUITIES LP PLANS TO SELL 10 MILLION SHARES THE FORT LAUDERDALE FLA COMPANY A MAKER OF CONSUMER PRODUCTS SAID THE SALE WILL REDUCE SUNBEAMOSTER EQUITIES' OWNERSHIP TO 57 OF THE SHARES OUTSTANDING FROM 70 OR 558 MILLION SHARES CURRENTLY COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SUNBEAMOSTER CLOSED AT 1925 A SHARE DOWN 1375 OR 67 SUNBEAMOSTER EQUITIES IS OWNED BY STEINHARDT VENTURES AND MUTUAL SERIES FUND INC'S MUTUAL SHARES FUND MUTUAL QUALIFIED FUND AND MUTUAL BEACON FUND 9403020039 940302 GLITZ AND GIVING HOLLYWOOD'S MAJOR FIGURES THIS TABLE IS EXCERPTED FROM A RECENT EDITION OF THE O'LEARYKAMBER REPORT A POLITICAL NEWSLETTER PUBLISHED IN WASHINGTON OUR FINDINGS SHOW THE REPORT SAYS THAT A MAJORITY OF CONTRIBUTIONS FROM WEALTHY CELEBRITIES WENT TO DEMOCRATIC CAMPAIGNS OR POLITICAL COMMITTEES 9403020038 940302 REVIEW & OUTLOOK EDITORIAL RELUCTANT WARRIORS IT CAN BE HOPED THAT THE ACTION OF TWO US F16S IN SHOOTING DOWN FOUR SERB JETS WILL GIVE AT LEAST SOME CREDIBILITY TO UN THREATS OF MILITARY ACTION IN BOSNIA BUT CONSIDERING THE PREVIOUS DAMAGE TO UN CREDIBILITY IT WILL TAKE MORE THAN THAT TO INFLUENCE REAL EVENTS IN THIS TANGLED WAR ZONE PRESIDENT CLINTON DIDN'T HELP MUCH WITH HIS APOLOGETIC TONE ABOUT THE SHOOTDOWNS HE SAID EVERY ATTEMPT WAS MADE TO AVOID THEM THE US COMMANDER IN CHIEF ALSO PUT A RATHER FINE GLOSS ON THE FREQUENT PAST SERB VIOLATIONS OF THE UN NOFLY ZONE SAYING THERE HAVE BEEN HELICOPTER FLIGHTS BUT NONE BY FIXEDWING AIRCRAFT HIS MAN ON THE SCENE ADMIRAL JEREMY BOORDA HAD TO AMEND THAT BY ADMITTING THERE INDEED HAD BEEN SHORT FIXEDWING FLIGHTS AS EVERYONE BUT THE AMERICAN PRESIDENT SEEMS TO HAVE KNOWN BUT WE DIDN'T SEE THEM THAT NO DOUBT WAS BECAUSE THERE WAS NEVER ANY ENTHUSIASM AT THE UN FOR ENGAGING THE SERBS THE NOFLY PROJECT WAS GIVEN A FANCY TITLE OPERATION DENY FLIGHT WHEN IT WAS CONCOCTED BY THE UN IN OCTOBER 1992 BUT IT WASN'T UNTIL APRIL LAST YEAR THAT NATO AIRCRAFT WERE DEPLOYED TO ITALY TO PATROL THE SKIES OVER BOSNIA THOSE HELICOPTER FLIGHTS PRESIDENT CLINTON THINKS WERE SO INCIDENTAL WERE CLEARLY PART OF SERB AND CROAT MILITARY OPERATIONS BUT NO ONE INTERFERED WITH THEM IT'S NO WONDER THE BOSNIAN SERBS THOUGHT EARLY MONDAY THAT THEY COULD CONDUCT AIR ATTACKS ON THE MUSLIMS WITH IMPUNITY WHEN THEIR SUPERGOLEB LIGHT ATTACK AIRCRAFT BOMBED A MUSLIM AREA NOT FAR FROM SARAJEVO AND NO WONDER THEIR PILOTS DIDN'T HEED THE CHALLENGE OF THE F16 FLIERS UNTIL THEN THEY COULD ASSUME THAT THE NATO PILOTS WERE OPERATING UNDER RULES OF ENGAGEMENT THAT AMOUNTED TO A BAN ON COMBAT THE ABILITY OF THE SERBS TO USE HELICOPTERS TO MOVE TROOPS IN SUPPORT OF THEIR HEAVY WEAPONS GAVE THEM A DISTINCT TACTICAL ADVANTAGE OVER THE MOSTLY MUSLIM BOSNIAN GOVERNMENT FORCES IN THE EARLY STAGES OF THE WAR THE MUSLIM FIGHTERS AND CIVILIANS IN THE TOWNS THEY WERE DEFENDING WERE BADLY MAULED THE UN THROUGH ITS ARMS EMBARGO SHUTTING OFF SHIPMENTS OF HEAVY WEAPONS TO THE MUSLIMS AND THROUGH ITS FAILURE TO ENFORCE ITS OWN NOFLY EDICT HAS KEPT THE DECK STACKED AGAINST THE MUSLIMS THAT ENABLED THE SERBS TO TAKE OVER SOME 70 OF BOSNIA FORCING THE MUSLIMS INTO A NARROW CENTRAL ZONE AND A FEW SMALL ENCLAVES HAVING THEREBY HELPED THE SERBS DEFEAT THE MUSLIMS UN NEGOTIATORS' IDEA OF PEACE HAS BEEN TO INVITE THE MUSLIMS TO ACCEPT THEIR DEFEAT WHILE THE US AND NATO MAY HAVE NOW IMPROVED THEIR CREDIBILITY THEY BY NO MEANS HAVE IMPROVED THEIR ABILITY TO BRING A JUST PEACE TO BOSNIA THE MUSLIM FORCES HAVE RAISED THEIR FIGHTING CAPABILITY SUFFICIENTLY TO FEEL THAT THEY MAY HAVE A CHANCE TO WIN BACK SOME TERRITORY EVEN WITH THEIR SERIOUS DISADVANTAGE IN HEAVY WEAPONS THEY HAVE SCORED SOME SIGNIFICANT VICTORIES AGAINST THE CROATS WHO ARE CLEARLY BECOMING WEARY OF THE FIGHTING YESTERDAY MUSLIMS AND CROATS EXCHANGED 400 PRISONERS THROUGH THE RED CROSS PERHAPS IN ADVANCE OF A RAPPROCHEMENT IT IS HOWEVER NOT THE INTENT OF THE OF THE UN OR NATO OR THE US TO ENTER THE WAR ON BEHALF OF BOSNIA'S GOVERNMENT WE SUSPECT THAT FOR AWHILE NOW THE SERBS WILL BE MORE CAREFUL WITH THEIR AIRCRAFT BUT AS IT STANDS THE ENGAGEMENT WAS AN INCIDENT NOT A DECISIVE BATTLE IN THE BOSNIAN WAR 9403020037 940302 BUSINESS BRIEF WESTMORELAND COAL CO COAL MINE TO CLOSE IN APRIL LAYING OFF 133 WORKERS WESTMORELAND COAL CO PHILADELPHIA SAID IT WILL CLOSE ITS HAMPTON DIVISION IN BOONE COUNTY WVA WHICH INCLUDES A COAL MINE A MACHINE SHOP AND A PREPARATION PLANT THE DIVISION WHICH WILL LAY OFF 133 WORKERS WILL BE CLOSED ON APRIL 29 THE COMPANY CITED THE LOSS OF A MAJOR ABOVEMARKET CONTRACT AND THE CONTINUING LOW PRICE OF COAL FOR ITS DECISION 9403020036 940302 BUSINESS BRIEF HOUSTON INDUSTRIES INC UNIT AGREES TO ACQUIRE THREE CABLE COMPANIES HOUSTON INDUSTRIES INC SAID ITS KBLCOM INC UNIT AGREED TO ACQUIRE THREE CABLE COMPANIES SERVING ABOUT 47000 CUSTOMERS IN THE MINNEAPOLIS AREA FOR A GROSS PURCHASE PRICE OF 87 MILLION IN A NEWS RELEASE THE COMPANY IN HOUSTON SAID THAT AFTER REDUCTION FOR LIABILITIES IT WILL PAY THE PURCHASE PRICE IN COMMON STOCK HOUSTON INDUSTRIES SAID THE THREE CABLE COMPANIES NORTEL AMZAK CABLE MIDWEST AND MINNESOTA CABLE PROPERTIES ARE UNDER COMMON OWNERSHIP ABOUT 40000 OF THE CUSTOMERS SERVED BY THE PROPERTIES ARE IN THE MINNESOTA COMMUNITIES OF BLOOMINGTON ST LOUIS PARK FRIDLEY CHASKA AND SHAKOPEE WITH THE REMAINING CUSTOMERS LOCATED IN SMALL COMMUNITIES SOUTH AND WEST OF THE MINNEAPOLIS METROPOLITAN AREA 9403020035 940302 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CALIFORNIA ENERGY CO AN OFFERING OF UP TO 400 MILLION OF SENIOR DISCOUNT NOTES VIA LEHMAN BROTHERS SALOMON BROTHERS INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND BEAR STEARNS & CO CHRYSLER FINANCIAL CORP A UNIT OF CHRYSLER CORP A SHELF OFFERING FOR 25 BILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES FLEXTRONICS INTERNATIONAL LTD AN INITIAL OFFERING OF 25 MILLION SHARES VIA MONTGOMERY SECURITIES AND COWEN & CO LANDESKREDITBANK BADENWURTTEMBERG AND BADENWORTTEMBERG LFIANCE LV A SHELF OFFERING FOR 550 MILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES POGO PRODUCING CO AN OFFERING OF 75 MILLION IN CONVERTIBLE SUBORDINATED NOTES VIA MERRILL LYNCH & CO GOLDMAN SACHS & CO AND PAINEWEBBER INC QUINTILES TRANSNATIONAL CORP AN INITIAL OFFERING OF TWO MILLION NEWLY ISSUED COMMON SHARES VIA MORGAN STANLEY & CO AND HAMBRECHT & QUIST INC SUNBEAMOSTER EQUITIES LP A GROUP THAT CONTROLS 70 OF SUNBEAM OSTER CO AN OFFERING OF 10 MILLION SUNBEAM OSTER COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 15 MILLION ADDITIONAL SHARES VIA MERRILL LYNCH PAINEWEBBER AND SMITH BARNEY SHEARSON INC WHITNEY FOODS INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA RODMAN & RENSHAW INC 9403020034 940302 BUSINESS BRIEF TIDE WEST OIL CO PROFIT OF 16 CENTS A SHARE IN 4TH QUARTER TO BE POSTED TIDE WEST OIL CO EXPECTS TO REPORT NET INCOME OF ABOUT 16 CENTS A SHARE FOR THE FOURTH QUARTER PHILIP B SMITH THE COMPANY'S PRESIDENT SAID IN THE YEARAGO QUARTER TIDE WEST REPORTED NET INCOME OF 24 MILLION OR 46 CENTS A SHARE ON REVENUE OF 61 MILLION ALTHOUGH NET INCOME APPEARS TO HAVE PLUNGED ON A PERSHARE BASIS THE YEARTOYEAR COMPARISON IS ESSENTIALLY FLAT THE NUMBER OF SHARES OUTSTANDING INCREASED TO 93 MILLION AT THE END OF THE FOURTH QUARTER OF 1993 FROM 53 MILLION A YEAR EARLIER IN AN INTERVIEW MR SMITH SAID THE TULSA OKLA COMPANY'S STRATEGY OF ACQUIRING PRODUCING PROPERTIES DEVELOPING WHAT IT HAS AND A WORKOVER PROGRAM HAS BEEN SUCCESSFUL AND NET PROVED RESERVES OF NATURAL GAS JUMPED 666 TO 1426 BILLION CUBIC FEET AT YEAREND 1993 FROM 856 BILLION CUBIC FEET MR SMITH SAID THE COMPANY PLANS TO CONTINUE ACQUIRING MORE RESERVES AND DEVELOPING THEM 9403020033 940302 WHO'S NEWS DIED RICHARD J BENNETT 77 FORMER CHAIRMAN OF SCHERINGPLOUGH CORP MONDAY OF HEART FAILURE MR BENNETT RETIRED AS CHAIRMAN OF THE PHARMACEUTICAL AND HEALTHCARE CONCERN IN DECEMBER 1983 AFTER 37 YEARS WITH THE COMPANY HE RETIRED AS A DIRECTOR IN APRIL 1989 9403020032 940302 WHO'S NEWS TRW INC TRW INC CLEVELAND ADOLF MUELLER 62 YEARS OLD EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THIS COMPANY'S OCCUPANT RESTRAINTS & CONTROLS GROUP WILL RETIRE EFFECTIVE AUG 1 HE HAS BEEN WITH TRW FOR 30 YEARS MR MUELLER WILL BE SUCCEEDED BY JOHN A JANITZ 51 VICE PRESIDENT AND GENERAL MANAGER OCCUPANT RESTRAINTS AND PHILIPPE LEMAITRE 44 VICE PRESIDENT AND GENERAL MANAGER AUTOMOTIVE ELECTRONICS WHO TOGETHER WILL ASSUME GROUP EXECUTIVE RESPONSIBILITIES THE TWO EXECUTIVES WILL REPORT TO TRW'S PRESIDENT AND CHIEF OPERATING OFFICER EDSEL D DUNFORD AND WILL BECOME MEMBERS OF THE CORPORATION'S SENIOR MANAGEMENT COMMITTEE AS MR MUELLER HAS BEEN TRW PROVIDES HIGHTECHNOLOGY PRODUCTS AND SERVICES FOR THE AUTOMOTIVE SPACE AND DEFENSE AND INFORMATION MARKETS 9403020031 940302 INTERNATIONAL ABBEY NATIONAL POSTS RISE IN PRETAX PROFIT OF 25 FOR LATEST YEAR SPECIAL TO THE WALL STREET JOURNAL LONDON UNITED KINGDOM BANK ABBEY NATIONAL PLC ANNOUNCED A 25 INCREASE IN PRETAX PROFIT FOR 1993 AS PROVISIONS FOR BAD AND DOUBTFUL DEBTS FELL 20 EACH OF ITS KEY UK RETAILBANKING LIFEASSURANCE AND TREASURY OPERATIONS IMPROVED THEIR PERFORMANCE PRETAX PROFIT FOR 1993 ROSE TO 704 MILLION 105 BILLION OR 297 PENCE A SHARE FROM 564 MILLION OR 242 PENCE A YEAR EARLIER DIVIDEND PAYOUT ROSE 22 TO 14 PENCE COMPARED WITH 115 PENCE A YEAR EARLIER DEBT PROVISIONS WERE DOWN 20 TO 218 MILLION FROM 274 MILLION A YEAR EARLIER BOTH ITS PRETAX PROFIT AND DIVIDEND PAYOUT WERE HIGHER THAN MARKET EXPECTATIONS FOR 6725 MILLION AND 13 PENCE RESPECTIVELY ABBEY NATIONAL DESCRIBED 1993 AS A SUCCESSFUL YEAR FOR THE BANK WITH ITS UK RETAILBANKING OPERATION SUBSTANTIALLY INCREASING ITS SHARE OF THE MORTGAGE AND SAVINGS MARKET WHILE SERIOUS DEBT ARREARS WERE REDUCED BY ONE FIFTH AND THE NUMBER OF REPOSSESSED PROPERTIES WERE HALVED ITS TREASURY OPERATIONS CONTINUED TO EXPAND ITS ASSET BASE THE BANK SAID IT EXPECTS UK NET MORTGAGE LENDING TO RISE 10 IN 1994 AND THAT ITS BADDEBT PROVISIONS WILL FALL FURTHER IN THE CURRENT YEAR AS THE TREND IN HOUSE REPOSSESSIONS AND MORTGAGEPAYMENTS ARREARS CONTINUES DOWNWARD ABBEY NATIONAL SAID THAT NET INTEREST INCOME ROSE TO 134 BILLION FROM 127 BILLION IN 1992 AGAINST ITS PROFIT FOR THE YEAR THE BANK MADE AN EXCEPTIONAL CHARGE OF 30 MILLION FOR THE SALE OF CORNERSTONE EXCEPTIONAL ITEMS TOTALED 37 MILLION IN 1992 9403020030 940302 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO PUBLIC OFFERING IS CONSIDERED FOR PG&E RESOURCES UNIT PACIFIC GAS & ELECTRIC CO WHICH RECENTLY ANNOUNCED PLANS TO DIVEST ITSELF OF ITS PG&E RESOURCES UNIT OF DALLAS SAID IT'S CONSIDERING TAKING THE UNIT PUBLIC PG&E OF SAN FRANCISCO FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF THE UNIT UNDER THE PROPOSED NAME DALEN RESOURCES CORP THE FILING CONTEMPLATES A SALE OF 22 MILLION DALEN SHARES AT A PRICE OF 20 EACH A FINAL DECISION ON THE OFFERING HASN'T BEEN MADE YET SAID A PG&E SPOKESMAN HE DIDN'T RULE OUT THE POSSIBILITY OF A DIVESTITURE THROUGH A PRIVATE SALE THE OPERATIONS TO BE SOLD HAD REVENUE OF 2315 MILLION LAST YEAR ABOUT 2 OF PG&E'S TOTAL 1993 REVENUE THE ENERGY CONCERN HAS SAID THE UNIT DOESN'T QUITE FIT WITH THE PARENT'S LONGTERM STRATEGY 9403020029 940302 SHAWMUT RENEWS ITS BID FOR NEW DARTMOUTH BANK HARTFORD CONN SHAWMUT NATIONAL CORP RESUBMITTED AN APPLICATION TO ACQUIRE NEW DARTMOUTH BANK ACCORDING TO A SHAWMUT SPOKESMAN SHAWMUT AGREED TO ACQUIRE THE CLOSELY HELD MANCHESTER NH BANK LAST MARCH BUT THE FEDERAL RESERVE BOARD REJECTED THE APPLICATION IN NOVEMBER CITING CONCERNS ABOUT SHAWMUT'S COMPLIANCE WITH FAIRLENDING LAWS AT THE TIME THE JUSTICE DEPARTMENT WAS INVESTIGATING POSSIBLE EVIDENCE THAT SHAWMUT MORTGAGE CO A UNIT MAY BE GUILTY OF LENDING BIAS LENDING DISCRIMINATION CHARGES HOWEVER WERE SETTLED WITH THE JUSTICE DEPARTMENT IN DECEMBER WHEN SHAWMUT MORTGAGE AGREED TO SET UP A 960000 FUND TO COMPENSATE BLACKS AND HISPANICS WHO MAY HAVE BEEN UNFAIRLY DENIED MORTGAGES AMONG ITS RESUBMISSION PAPERS WAS A FULLYEAR REPORT ON MORTGAGE LOANS AND REJECTIONS BY SHAWMUT CATEGORIZED BY RACE AN ANNUAL DISCLOSURE THAT BANKS ARE REQUIRED TO FILE WE BELIEVE THAT WE'VE SATISFIED ALL THE FED'S CONCERNS SAID ROBERT GUENTHER A SHAWMUT SPOKESMAN MR GUENTHER SAID SHAWMUT DOESN'T KNOW WHEN GOVERNMENT REGULATORS WILL RECONSIDER ITS RESUBMITTED APPLICATION 9403020028 940302 WHO'S NEWS LAWTER INTERNATIONAL INC LAWTER INTERNATIONAL INC NORTHBROOK ILL ARTHUR A HARTMAN 68 YEARS OLD PRESIDENT OF THE HARVARD UNIVERSITY BOARD OF OVERSEERS AND A WASHINGTONBASED PUBLICRELATIONS CONSULTANT WAS ELECTED A DIRECTOR OF THIS SPECIALTYCHEMICALS CONCERN INCREASING BOARD MEMBERSHIP TO SIX 9403020027 940302 BUSINESS BRIEF TIMES MIRROR LOS ANGELES PUBLISHER BUYS ALLEN COMMUNICATION INC TIMES MIRROR CO SAID IT ACQUIRED CLOSELY HELD ALLEN COMMUNICATION INC A MAKER OF COMPUTERIZED TRAINING PROGRAMS TERMS WEREN'T DISCLOSED ALLEN COMMUNICATION WITH 75 EMPLOYEES MAKES ITS OWN TRAINING PROGRAMS AND SOCALLED AUTHORING SOFTWARE USED TO CREATE INTERACTIVE COMPUTER PROGRAMS TIMES MIRROR SAID IT PLANS TO USE ALLEN COMMUNICATION'S SOFTWARE TO MAKE COMPUTERIZED VERSIONS OF ORDINARY TEXT AND PROJECTION TRAINING MATERIALS NOW PRODUCED BY VARIOUS UNITS OF THE TIMES MIRROR TRAINING GROUP OF COMPANIES LOS ANGELESBASED TIMES MIRROR IS A PUBLISHER OF NEWSPAPERS INCLUDING ITS FLAGSHIP LOS ANGELES TIMES AS WELL AS MAGAZINES AND BOOKS THE COMPANY ALSO OWNS WHAT IT SAYS IS THE NATION'S 10THLARGEST TELEVISION CABLE BUSINESS 9403020026 940302 LAW LEGAL BEAT SOLICITOR GENERAL APPEARS HIGH ON LIST FOR SUPREME COURT SEAT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DREW DAYS THE US SOLICITOR GENERAL IS AUDITIONING FOR THE SUPREME COURT AS THE GOVERNMENT'S TOP LAWYER IN HIGH COURT CASES THE 52YEAROLD DEMOCRAT IS AN OBVIOUS CANDIDATE TO FILL THE NEXT COURT VACANCY WHICH COULD COME AS EARLY AS THIS SPRING IF JUSTICE HARRY BLACKMUN 85 DECIDES TO RETIRE LIBERALS IN PARTICULAR ARE ENTRANCED BY THE IDEA OF A MR JUSTICE DAYS AND NOT JUST BECAUSE THE FORMER LITIGATOR WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND HAPPENS TO BE BLACK HE HAS BEEN A BRILLIANT ADVOCATE A RESPECTED ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IN THE CARTER ADMINISTRATION AND HIS INTEGRITY IS BEYOND DISPUTE SAYS RALPH NEAS EXECUTIVE DIRECTOR OF THE LEADERSHIP CONFERENCE ON CIVIL RIGHTS WORKING IN HIS FAVOR IS THE FACT THAT MR DAYS IS FRIENDLY WITH THE PRESIDENT AND HILLARY RODHAM CLINTON WITH WHOM HE SHARES YALE LAW SCHOOL ALUMNI TIES NOW ON LEAVE FROM HIS PROFESSORSHIP AT THE SCHOOL MR DAYS HAS FRAMED ON THE WALL OF HIS BOOKFILLED JUSTICE DEPARTMENT OFFICE A 1 MCDONALD'S GIFT CERTIFICATE INSCRIBED TO DREW DAYS A FELLOW TRAVELLER BILL CLINTON YET MR DAYS'S STRENGTH AS A SUPREME COURT ASPIRANT IS ALSO A WEAKNESS HIS STRONG LIBERAL INCLINATIONS MAKE HIM A MAGNET FOR CRITICISM FROM REPUBLICANS OF COURSE BUT THE TOOLIBERAL LABEL IS ALSO HURTING HIS STANDING AMONG SOME PEOPLE WITHIN THE CLINTON CAMP IT ISN'T THAT MR DAYS HAS BEEN TRYING TO MAKE WAVES HIS ORAL ARGUMENTS BEFORE THE SUPREME COURT HAVE BEEN UNDERSTATED EVEN DEFERENTIAL WHEN ASKED BY THE WHITE HOUSE TO CRAFT LEGAL POSITIONS TO FIT POLITICAL NEEDS MR DAYS DUTIFULLY COMPLIES EVEN IF IT MEANS CONTRADICTING HIS OWN PAST VIEWS BUT SENIOR SENATE REPUBLICANS AND SOME MEMBERS OF HIS OWN PARTY ARE CONVINCED THAT MR DAYS REMAINS AT HEART AN UNRECONSTRUCTED LIBERAL ACTIVIST WHO CAME OF AGE PROFESSIONALLY IN THE 1960S AND 1970S THEY FEAR THAT IF FREED TO FOLLOW HIS INSTINCTS MR DAYS WOULD PURSUE AN AGENDA THAT WOULD NOT ONLY ENRAGE CONSERVATIVES BUT WOULD EVEN BE OUT OF STEP WITH THE CRACKDOWNONCRIME NEW DEMOCRAT RHETORIC OF THE ADMINISTRATION HE NOW SERVES MODERATE DEMOCRATS CITE SUCH EVIDENCE AS THE SOLICITOR GENERAL'S REVERSAL LAST FALL OF THE GOVERNMENT'S POSITION IN A CHILDPORNOGRAPHY CASE IN WHICH MR DAYS CAME ACROSS AS SOFT ON CRIME HIS ACTION BROUGHT QUICK CONDEMNATION FROM CONGRESS AND EVEN AN EXTRAORDINARY PUBLIC REBUKE FROM MR CLINTON HIMSELF OTHERS FRET THAT HE IS FROM THE SAME OLDLIBERAL SCHOOL AS THE JUSTICE DEPARTMENT'S DEPARTED NO 2 OFFICIAL PHILIP HEYMANN WHO RESIGNED SUDDENLY IN JANUARY AND THEN BLASTED BOTH PARTIES FOR TRYING TO OUTDO EACH OTHER IN PROVING THEIR TOUGHNESS ON THE POLITICALLY EXPLOSIVE CRIME ISSUE SOME DEMOCRATS ALSO FRET THAT MR DAYS'S LIBERAL REPUTATION WOULD ATTRACT HEAVY FLAK FROM REPUBLICANS EAGER TO SCORE POINTS IN THE CRIME DEBATE SUCH FEARS ARE WELLGROUNDED SAYS ORRIN HATCH THE TOP REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE PERSONALLY I LIKE DREW DAYS HE'S A VERY TALENTED LAWYER SAYS THE UTAH LAWMAKER BUT HIS NOMINATION VERY WELL COULD FACE SEVERE OPPOSITION BECAUSE MANY SENATORS ON BOTH SIDES OF THE FENCE FEEL THE ONE THING THEY DON'T NEED ARE JUDGES WHO ARE SOFT ON OBSCENITY ESPECIALLY PORNOGRAPHY IN ADDITION SOME REPUBLICANS ARE STILL BITTER OVER MR DAYS'S TESTIMONY AGAINST JUSTICE CLARENCE THOMAS'S CONFIRMATION IN 1991 UNTIL A HIGHCOURT OPENING FOCUSES THE PRESIDENT'S ATTENTION IT WILL BE HARD TO CALIBRATE MR DAYS'S PROSPECTS PRECISELY THE POTENTIAL CANDIDATE HIMSELF POLITELY DECLINES TO DISCUSS THE MATTER MUCH OF THE SOLICITOR GENERAL'S WORK REPRESENTING FEDERAL AGENCIES IS ARCANE AND NONPARTISAN BUT HE INEVITABLY MUST JUGGLE POLITICS AND LAW IN SOME CASES MR DAYS HAS REVERSED REPUBLICAN POSITIONS IN SUCH CASES AS ONE IN WHICH THE ADMINISTRATION NOW SUPPORTS A BAN ON THE COMMON TRIAL LAWYER'S TACTIC OF ASKING FOR THE REMOVAL OF JURORS BASED SOLELY ON THEIR SEX MR DAYS TOLD THE SUPREME COURT THAT TAKING THIS STEP IS A NATURAL EXTENTION OF PAST RULINGS FORBIDDING THE ELIMINATION OF JURORS ON THE BASIS OF RACE WHEN FACED WITH ASSIGNMENTS THAT CLASH WITH HIS PERSONAL VIEWS MR DAYS SO FAR HAS FOLLOWED THE EXAMPLE OF MOST OF HIS PREDECESSORS COMPROMISE THE MOST STRIKING EXAMPLE HAS BEEN HIS ROLE IN HELPING HAMMER OUT THE LEGAL PROBLEMS IN THE ADMINISTRATION'S SLIGHT RELAXATION OF THE MILITARY'S BAN ON HOMOSEXUALS DEEPLY OPPOSED TO THIS FORM OF DISCRIMINATION MR DAYS CHOSE TO PUT ASIDE HIS OWN PRINCIPLES IN THE NAME OF GRADUAL CHANGE AS PART OF THE DEAL UNDER WHICH THE JOINT CHIEFS OF STAFF AGREED TO THE MODEST CLINTON REFORMS THE ADMINISTRATION IS CONTINUING TO DO BATTLE IN COURT WITH SERVICE MEMBERS EXCLUDED UNDER THE OLD TOTAL GAY BAN BUT WHEN POSSIBLE MR DAYS HAS INSERTED LANGUAGE IN GOVERNMENT FILINGS TO LIMIT THEM STRICTLY TO THE MILITARY CONTEXT HIS GOAL TO LAY THE GROUNDWORK FOR POSSIBLE FUTURE ARGUMENTS IN WHICH THE ADMINISTRATION WOULD SEEK TO REVERSE THE SUPREME COURT'S TOLERATION OF CIVILIAN ANTIGAY LAWS IN A STARKLY DIFFERENT FIELD THAT OF CORPORATE TAXATION MR DAYS HAS DONE THE LEGAL WORK NECESSARY TO FULFILL A CLINTON CAMPAIGN PROMISE TO CALIFORNIA OFFICIALS MR CLINTON VOWED THAT IF ELECTED HE WOULD SUPPORT CALIFORNIA AGAINST A MULTIBILLIONDOLLAR CHALLENGE TO ITS AGGRESSIVE TAX ON MULTINATIONAL CORPORATIONS IN A TORTUOUS BRIEF FILED RECENTLY IN A PENDING SUPREME COURT CASE MR DAYS REPUDIATED THE FEDERAL GOVERNMENT'S PRIOR FILINGS WHICH HAD OPPOSED SUCH STATE LEVIES AS HARMFUL TO US TRADE RELATIONS WHILE GENERALLY COOPERATIVE WITH THE WHITE HOUSE MR DAYS HAS TAKEN SOME POSITIONS THAT HE KNEW WOULD SPARK DISCORD BEFORE HE BEGAN WORK LAST SUMMER FOR INSTANCE CAREER JUSTICE DEPARTMENT LAWYERS HAD STRONGLY URGED THE HIGH COURT NOT TO HEAR AN APPEAL BY A TRANSSEXUAL INMATE WHO CLAIMED FEDERAL PRISON OFFICIALS SUBJECTED HIM TO CRUEL AND UNUSUAL PUNISHMENT BY TRANSFERRING HIM TO A PRISON WHERE HE WAS RAPED BY ANOTHER INMATE AFTER THE COURT TOOK THE CASE ANYWAY PAUL BENDER MR DAYS'S HANDPICKED DEPUTY INTERVENED MR BENDER ASSERTED THAT THE GOVERNMENT'S POSITION WOULD BLOCK LEGITIMATE INMATE SUITS CAREER DEPARTMENT LAWYERS EXPLODED IN A SERIES OF MEETINGS PUNCTUATED BY YELLING ON BOTH SIDES THE CAREER OFFICIALS WARNED THAT MR BENDER'S APPROACH WOULD EXPOSE PRISON OFFICIALS TO TREMENDOUS COURT LIABILITY MR DAYS ULTIMATELY BROKERED A COMPROMISE THE ADMINISTRATION'S BRIEF PROPOSED A SOMEWHAT AMBIGUOUS LIABILITY STANDARD THAT ISN'T FAR FROM WHAT THE INMATE HIMSELF ASKED FOR THE CASE IS STILL PENDING 9403020025 940302 BUSINESS BRIEF GTE CORP AIR CANADA TO USE SYSTEM THAT LETS FLIERS MAKE CALLS GTE CORP STAMFORD CONN SAID IT WILL SUPPLY AIR CANADA WITH A TELECOMMUNICATIONS SYSTEM ENABLING AIRLINE PASSENGERS TO MAKE AND RECEIVE CALLS FROM THE AIR AS WELL AS TRANSMITTING DATA TERMS OF THE PACT WEREN'T DISCLOSED THE PACT WAS SIGNED BY GTE AIRFONE A UNIT OF GTE AND THE UNIT'S CANADIAN PARTNER SKYTEL COMMUNICATIONS AND COVERS AIR CANADA'S ENTIRE DOMESTIC AND INTERNATIONAL FLEET OF 109 AIRCRAFT GTE SAID ITS DIGITAL GENSTAR SYSTEM WILL ALLOW PASSENGERS TO PLUG IN LAPTOP COMPUTERS AND PORTABLE FACSIMILE MACHINES SKYTEL A UNIT OF CANADIAN TELEPHONE COMPANY BCE LTD PROVIDES AIRTOGROUND COMMUNICATIONS SERVICE TO AIRLINES GTE A LARGE REGIONAL PHONE COMPANY SAID IT HAS AGREEMENTS TO SUPPLY THE GENSTAR SYSTEM FOR ABOUT 1700 AIRCRAFT AT SEVERAL MAJOR AIRLINES 9403020024 940302 BUSINESS BRIEF NATIONAL INTERGROUP INC HOLDING COMPANY PROPOSES TO BUY REST OF FOXMEYER NATIONAL INTERGROUP INC PROPOSED TO PAY 813 MILLION IN NOTES TO ACQUIRE THE 195 STAKE IN FOXMEYER CORP THAT THE DALLAS RETAIL HOLDING COMPANY DOESN'T ALREADY OWN FOXMEYER IS A DALLASBASED PHARMACEUTICAL DISTRIBUTOR WITH ANNUAL SALES OF ABOUT 51 BILLION UNDER THE PROPOSAL EACH FOXMEYER SHAREHOLDER OTHER THAN NATIONAL INTERGROUP WOULD RECEIVE 1475 PRINCIPAL AMOUNT OF 825 SENIOR NOTES DUE 2004 TO BE ISSUED BY A NEW NATIONAL INTERGROUP UNIT FOXMEYER HAS FORMED A COMMITTEE OF INDEPENDENT DIRECTORS TO EVALUATE THE PROPOSAL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOXMEYER SHARES ROSE 375 CENTS TO 13875 WHILE NATIONAL INTERGROUP GAINED 50 CENTS TO 1625 A NATIONAL INTERGROUP SPOKESMAN SAID THE COMPANY WANTS TO ACQUIRE THE REMAINING STAKE BECAUSE IT BELIEVES FOXMEYER'S STOCK IS UNDERVALUED IN ADDITION THE MOVE WOULD ELIMINATE THE COSTS OF RUNNING A SEPARATE PUBLICLY TRADED COMPANY 9403020023 940302 BUSINESS BRIEF FIRSTFED MICHIGAN CORP BANKHOLDING CONCERN PLANS CHARGE FOR RESTRUCTURING FIRSTFED MICHIGAN CORP SAID IT WILL TAKE A ONETIME RESTRUCTURING CHARGE OF BETWEEN 135 MILLION AND 145 MILLION IN THE FIRST QUARTER THAT WILL RESULT IN A LOSS FOR THE YEAR THE DETROITBASED BANKHOLDING COMPANY SAID THE RESTRUCTURING IS DESIGNED TO INCREASE FUTURE CORE EARNINGS FIRSTFED SAID THERE ARE TWO COMPONENTS TO ITS RESTRUCTURING FIRST IS A 750 MILLION TO 1 BILLION REDUCTION IN THE WHOLESALE SEGMENT OF FIRSTFED'S BALANCE SHEET AND ITS RELATED HEDGES THE SECOND COMPONENT IS A CHANGE IN ACCOUNTING FOR GOODWILL WHICH SUBSTANTIALLY ELIMINATES THE COMPANY'S GOODWILL BALANCE AND THE RELATED AMORTIZATION EXPENSE GOING FORWARD IN 1993 FIRSTFED HAD NET INCOME OF 414 MILLION OR 221 A SHARE THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING IN NASDAQ STOCK MARKET TRADING FIRSTFED SLIPPED 50 CENTS TO 21625 9403020022 940302 MARKETING BRIEF NOTED WHO'S NEWS JAY KRIEGEL 53 HAS JOINED PUBLICRELATIONS AND CONSULTING FIRM ABERNATHY MACGREGOR SCANLON AS COUNSELOR WORKING ON DEVELOPING THE FIRM'S COMMUNICATIONS AND ENTERTAINMENT PRACTICE PARTICULARLY IN INTERNATIONAL AREAS MR KRIEGEL PREVIOUSLY WAS SENIOR VICE PRESIDENT AT CBS INC WHERE FOR SIX YEARS HE OVERSAW THE REORGANIZATION OF THE COMPANY'S BROADCAST GROUP STRATEGIC PLANNING AND GOVERNMENT RELATIONS 9403020021 940302 WHO'S NEWS MAYTAG CORP MAYTAG CORP NEWTON IOWA MARK A GARTH 34 YEARS OLD FORMERLY CORPORATE DIRECTOR OF INTERNAL AUDIT WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS MAKER OF MAJOR HOME APPLIANCES SUCCEEDING ROBERT L CHAPLIN 63 WHO IS RETIRING 9403020019 940302 DETAILS OF US SECRETS ALLEGEDLY SOLD BY AMES EMERGE DURING BAIL HEARING BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL ALEXANDRIA VA FBI SEARCHES OF THE HOME AND CIA OFFICE OF ALDRICH AMES SHOW THAT HE HAS GIVEN THE RUSSIANS SOME OF THE NATION'S TOP SECRETS INCLUDING WHAT THE US KNOWS OF THE EVASIVE TACTICS OF RUSSIAN NUCLEAR SUBMARINES ACCORDING TO COURT TESTIMONY LESLIE WISER JR WHO HEADS THE FEDERAL BUREAU OF INVESTIGATION'S PROBE OF MR AMES SAID THAT IN RETURN THE RUSSIAN PAYMENTS INCLUDED THE PROMISE OF A DACHA OR SUMMER HOME IN RUSSIA ALONG WITH WELL OVER 25 MILLION STASHED IN 11 BANK ACCOUNTS IN THE US COLOMBIA ITALY AND SWITZERLAND IN A PRELIMINARY HEARING MARK HULKOWER THE ASSISTANT US ATTORNEY HANDLING THE CASE SAID IT INVOLVED ONE OF THE MOST HEINOUS CRIMES IMAGINABLE MR AMES AND HIS WIFE ROSARIO HE ASSERTED HAVE SOLD OUT THEIR COUNTRY TO SUPPORT A LAVISH LIFESTYLE EVIDENCED BY MORE THAN 500000 OF CREDIT CARD CHARGES FEDERAL MAGISTRATE BARRY PORETZ WHO PRESIDED OVER YESTERDAY'S HEARING HERE ORDERED THEM BOTH HELD WITHOUT BAIL TESTIFYING IN A PACKED HUSHED COURTROOM MR WISER SAID A NINEPAGE DOCUMENT FROM MR AMES'S RUSSIAN HANDLERS WAS FOUND IN A BOX IN A CLOSET OF THE AMES HOME IN NEARBY ARLINGTON IT SHOWED MR AMES'S TOP PRIORITY FROM THE RUSSIANS WAS TO REVEAL CENTRAL INTELLIGENCE AGENCY PENETRATIONS OF SOVIET AND LATER RUSSIAN INTELLIGENCE SERVICES USING CODED COMPUTER DISKS MR AMES REVEALED THE NAMES OF CIA EMPLOYEES IN THE FIELD AND THE NAMES OF COUNTERINTELLIGENCE AGENTS HIRED BY THEM TO OPERATE AGAINST THE SOVIET UNION ONE AGENT KNOWN AS GT MOTORBOAT WAS AN EAST EUROPEAN INTELLIGENCE OFFICIAL WHO DISAPPEARED AFTER HIS IDENTITY WAS DISCLOSED ACCORDING TO MR WISER AMONG THE EVIDENCE ARE FIVE COLOR PHOTOGRAPHS OF LAND ON WHAT APPEARS TO BE A RIVER IN RUSSIA THAT WAS DESCRIBED BY THE RUSSIANS AS A FUTURE SITE FOR A DACHA WHICH BELONGS TO YOU FOREVER MR WISER SAID THE FBI STILL HAS ONLY A PARTIAL PICTURE OF THE TOTAL AMOUNT OF THE PAYMENTS AND BELIEVES THEY ARE AT LEAST TWICE THE AMOUNT PAID TO ANY OTHER US SPY OR SPY NETWORK IN US HISTORY THEY THE RUSSIANS ARE NOTORIOUSLY THRIFTY WITH REPECT TO PAYMENTS TO AGENTS HE SAID THE PAYMENTS BEGAN IN WASHINGTON IN 1985 AND ACCELERATED WHEN MR AMES WAS TRANSFERRED TO ROME WHERE HE CONTINUED TO EXAMINE AND RECRUIT PROMISING COUNTERSPIES MR WISER SAID HE WAS SPECIFICALLY WARNED ABOUT TRAPS THAT THE CIA SETS FOR MOLES MR WISER SAID THE FBI DIDN'T BEGIN TO INVESTIGATE MR AMES UNTIL MAY 12 1993 AFTER HE HAD BEEN TRANSFERRED BACK TO CIA HEADQUARTERS IN NOVEMBER FBI AGENTS FOLLOWED MR AMES TO A MEETING WITH RUSSIANS AT A BOWLING ALLEY IN BOGOTA COLOMBIA AS A COVER STORY FOR HIS UNDISCLOSED TRIP TO COLOMBIA HE SAID MR AMES HAD INSTRUCTED HIS WIFE IF ANYBODY IN THE OFFICE CALLED THAT HE WOULD BE IN ANNAPOLIS FOR THE DAY SOME OF THE MOST DAMNING EVIDENCE IN THE CASE AGAINST MR AMES COMES FROM HIS WIFE WHO FIRST TOLD FBI AGENTS AFTER SHE WAS ARRESTED THAT MR AMES'S MONEY CAME FROM HANDLING INVESTMENTS FOR A RICH RELATIVE IN CHICAGO LATER ACCORDING TO MR WISER SHE ADMITTED SHE LIED AND THAT THE MONEY HAD COME FROM THE RUSSIANS FOR SELLING SECRETS WIRETAPS ON THE AMES HOME HE SAID SHOWED THAT MRS AMES GAVE HER HUSBAND TIPS ON HOW TO CONCEAL THE MONEY AND TOLD HIM THAT RETURNING FROM FOREIGN MEETINGS WITH RECEIPTS SHOWING BIG HUNKS OF MONEY FROM THE RUSSIANS WAS RISKY ONE OF HER STRATAGEMS THE FBI AGENT ADDED WAS TO USE A BANK ACCOUNT IN THE NAME OF HER MOTHER A COLOMBIAN CITIZEN THE AMESES BOTH WEARING TANANDGREEN PRISON UNIFORMS DIDN'T TESTIFY AT THE HEARING WHICH WAS HELD TO DETERMINE WHETHER BAIL WOULD BE SET THE COUPLE SAT IN A FRONT ROW SEAT SEPARATED BY A US MARSHAL THEIR LAWYERS BOTH ARGUED THAT THE US HAD FAILED TO MAKE A CASE THAT WAS BASED ON MORE THAN MERE INNUENDO APPARENTLY UNDER SUSPICION WITHIN THE CIA MR AMES WAS TRANSFERRED INTO A COUNTERNARCOTICS OPERATION DURING THE FINAL MONTHS OF HIS 31YEAR CAREER IN THE SPY AGENCY THERE ACCORDING TO MR WISER HE ACCUMULATED IN HIS OFFICE TOPSECRET DOCUMENTS UNRELATED TO HIS JOB INCLUDING THE DATA ON WHAT THE US KNEW ON RUSSIAN NUCLEAR SUBMARINES' EVASIVE TACTICS AND ACTIVITIES OF DOUBLE AGENTS USED BY THE CIA AGAINST RUSSIA THE FBI AGENT SAID INVESTIGATORS FOUND MORE THAN 100 SECRET CIA CABLES IN MR AMES'S HOME COMPUTER AND ARE CONTINUING TO FIND NEW INFORMATION IN ITS DATABASE THAT MR AMES WASN'T ALLOWED TO TAKE HOME IN ONE OF HIS LETTERS TO HIS RUSSIAN AGENTS THAT BEGAN MY DEAREST FRIENDS MR AMES DESCRIBED THAT HIS WIFE HAS ACCOMMODATED HERSELF TO WHAT I'M DOING IN A VERY SUPPORTIVE WAY MR WISER SAID THAT SOME OF THE RUSSIAN PAYMENTS TO MR AMES WERE ACCUMULATED IN THREE BANK ACCOUNTS IN SWITZERLAND AND LATER 600000 OF IT WAS BROUGHT INTO THE US BY WIRE TRANSFERS AS YET HE SAID THE US HASN'T BEEN ABLE TO GAIN ACCESS TO THE SWISS ACCOUNTS HE AND MR HULKOWER SAID THE BANK ACCOUNTS PLUS THE FACT THAT THE COUPLE APPEARS TO OWN TWO APARTMENTS AND A SEASIDE RANCH IN COLOMBIA MADE IT LIKELY IF EITHER OF THE DEFENDANTS WERE RELEASED ON BAIL THEY WOULD NEVER APPEAR FOR TRIAL 9403020018 940302 BUSINESS BRIEF LORAL CORP IBM'S FEDERAL SYSTEMS UNIT IS BOUGHT FOR 152 BILLION LORAL CORP COMPLETED ITS PURCHASE OF INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT FOR 152 BILLION THE ACQUISITION BRINGS NEW YORKBASED LORAL'S TOTAL FUNDED BACKLOG OF CONTRACTS TO BE PERFORMED TO ABOUT 6 BILLION INCLUDING FEDERAL SYSTEMS' SUBSTANTIAL PENTAGON AND GOVERNMENT CONTRACTS PROVIDING SYSTEMS INTEGRATION AND TECHNOLOGY FOR MILITARY AVIONICS ELECTRONIC COMBAT SPACE PROGRAMS AND COMMUNICATIONS PROJECTS THE COMPANY IS AWAITING COMPLETION OF A GOVERNMENTLED REVIEW PROCESS THAT PROVIDES FEDERAL OVERSIGHT WHEN A CONTRACT FOR GOVERNMENT SERVICES IS PASSED FROM ONE PROVIDER TO ANOTHER THE REVIEW IS LED BY THE DEFENSE DEPARTMENT WHICH PROVIDES 60 OF FEDERAL SYSTEMS' 22 BILLION IN ANNUAL REVENUE THE COMPANY ALSO PERFORMS WORK FOR OTHER AGENCIES SUCH AS THE FEDERAL AVIATION ADMINISTRATION WHICH HIRED FEDERAL SYSTEMS TO PERFORM A SWEEPING UPGRADE AND CONSOLIDATION OF AIRTRAFFIC CONTROL SYSTEMS THE INTERNAL REVENUE SERVICE RECENTLY AWARDED A 13 BILLION CONTRACT TO FEDERAL SYSTEMS FOR HELP CONVERTING TAXPAYERFILED TAX FORMS INTO ELECTRONIC IMAGES STARTING IN 1996 9403020017 940302 MARKETING & MEDIA COCACOLA LAUNCHES FRUITDRINK LINE BACKED BY 30 MILLION PROMOTIONAL PLAN BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL COCACOLA CO INTRODUCED A LINE OF FRUIT DRINKS IN A BID TO CAPTURE A MAJOR PORTION OF THE 6 BILLION MARKET FOR ALTERNATIVE BEVERAGES WHICH INCLUDES JUICES TEAS AND SPARKLING WATERS THE BEVERAGES CALLED FRUITOPIA WILL BE SUPPORTED INITIALLY BY A 30 MILLION PROMOTIONAL BUDGET AN ADDITIONAL 15 MILLION WILL BE SPENT ON 5000 FUSCHIA VENDING MACHINES AND 7000 COOLERS THAT WILL STOCK BOTTLES OF THE NEW PRODUCT IN STORES COCACOLA SAID IT EXPECTS THE BRAND WITH EIGHT FLAVORS FROM RASPBERRY PSYCHIC LEMONADE TO STRAWBERRY PASSION AWARENESS TO APPEAL TO CONSUMERS IN THEIR TWENTIES AND OLDER SALES THIS YEAR THE COMPANY ADDED SHOULD REACH MORE THAN 400 MILLION THE NEW VENTURE IS THE FIRST EVIDENCE OF COKE'S PREVIOUSLY ANNOUNCED PLANS TO ACCELERATE THE PACE AT WHICH IT BRINGS NEW PRODUCTS TO MARKET SOFTDRINK CONSULTANTS SAID THEY EXPECT COKE'S INVESTMENT COMBINED WITH ITS NESTEA VENTURE TO BOLSTER SALES OF ALL ALTERNATIVE DRINKS THERE'S A FLAVOR REVOLUTION GOING ON SAID TOM PIRKO PRESIDENT OF BEVMARK INC A CONSULTING FIRM CONSUMERS ARE LOOKING FOR FLAVORS TO BE NEW AND SCINTILLATING COKE HE ADDED CAN SPEND ENOUGH TO SWAMP THE CATEGORY MICHAEL BELLAS PRESIDENT OF BEVERAGE MARKETING CORP ESTIMATED NONCARBONATED JUICE SALES AT ABOUT 300 MILLION TO 325 MILLION ANNUALLY ADDING THAT THE CATEGORY DOUBLED IN SIZE LAST YEAR AND WILL DOUBLE AGAIN THIS YEAR SERGIO ZYMAN COKE'S CHIEF MARKETING OFFICER SAID HE EXPECTS THE ATLANTABASED SOFTDRINK CONCERN TO DOUBLE ITS SHARE OF THE ALTERNATIVE DRINK MARKET TO 15 THIS YEAR AND TO REACH 30 IN THREE YEARS COKE WILL BE COMPETING WITH MORE THAN 100 BRANDS OF SIMILAR JUICE DRINKS INCLUDING LINES FROM SNAPPLE BEVERAGE CORP AND PEPSICO INC PEPSICO PROMOTES THREE LEMONADES AND FIVE OTHER JUICE DRINKS CALLED SPLASH IN ITS JOINTVENTURE WITH OCEAN SPRAY THE COKE PRODUCTS AND THREE TV ADS BY CHIAT/DAY WILL START THEIR ROLLOUT IN FOUR WEEKS AND GO NATIONAL BY THIS SUMMER THE COMPANY SAID THE DRINKS WILL SELL FOR ABOUT 89 CENTS FOR A 16OUNCE WIDEMOUTH GLASS BOTTLE WHICH LOOKS SIMILAR TO SNAPPLE'S CONTAINERS MR PIRKO SAID THAT PRICE POINT MAY BE TOO HIGH NOTING THAT THERE IS TREMENDOUS PRICE RESISTANCE TO ALTERNATIVE DRINKS THAT ARE PRICED SUBSTANTIALLY HIGHER THAN REGULAR SOFT DRINKS INDEED CONSUMER TASTES IN ALTERNATIVE BEVERAGES HAVE BEEN EXTREMELY FICKLE CLEARLY CANADIAN BEVERAGE CORP IN VANCOUVER BRITISH COLUMBIA ONCE A ROARING SUCCESS HAS RECENTLY SEEN SALES SLIP FRUITOPIA REFLECTS COKE'S BROADER ATTEMPTS TO RESPOND TO CONSUMERS' PREFERENCES AFTER INTERVIEWING GROUPS OF PEOPLE IN THEIR 20S COMPANY MARKETERS JUNKED THE WORD JUICE FROM ITS PROMOTIONS AND PUT IN FRUIT MR ZYMAN SAID THEY ALSO LIGHTENED UP THE PACKAGE DESIGN WHICH FEATURES PSYCHEDELIC LETTERING AND PAUL KLEELIKE STICK DRAWINGS OF ICONS SUCH AS A JUMPING BODY AND A PLANET WE MADE IT MORE WACKO FUNKY HE SAID PREVIOUSLY WHEN COKE DEVELOPED NEW PRODUCTS WE HAD TO ASK THE BOTTLERS AND EXECUTIVES AND SELL OURSELVES ON THE IDEA BEFORE WE SOLD THE CONSUMER MR ZYMAN SAID TODAY WE SELL THE CONSUMER BEFORE OURSELVES MARKETING CONSULTANTS SAID THEY THINK THE IMAGERY HAS BIG APPEAL BUT DIFFERED ON TO WHOM IT MIGHT APPEAL MARIAN SALZMAN PRESIDENT OF BKG AMERICA A NEW YORK CONSULTANT SAID THE PRODUCT'S LOOK WILL ATTRACT THOSE IN THEIR 20S AND 30S NOSTALGIC FOR A 70S LIFESTYLE BUT THE DRINK ITSELF MAY BE TOO MUCH LIKE KOOLAID TO SELL THEM WHATEVER THE REACTION COKE SAYS IT'S PREPARED SAID MR ZYMAN NO BRAND IS FINAL WE WILL CONSTANTLY BE TWEAKING IT TO MAKE SENSE 9403020016 940302 SOCIETY KEYCORP MERGE CLEVELAND SOCIETY CORP AND KEYCORP ALBANY NY COMPLETED THEIR MERGER CREATING A BANK HOLDING COMPANY WITH ABOUT 60 BILLION IN ASSETS THE MERGED BANK WILL RETAIN THE KEYCORP NAME AND BE BASED IN CLEVELAND THE NEW KEYCORP HAS MORE THAN 1300 BRANCH AND AFFILIATE OFFICES IN 18 STATES STANDARD & POOR'S CORP ASSIGNED A SINGLEAMINUS SENIOR DEBT RATING AND A TRIPLEBPLUS SUBORDINATED DEBT RATING TO THE COMBINED BANKS ABOUT 800 MILLION OF LONGTERM DEBT IS AFFECTED S&P SAID THE RATINGS REFLECT SIMILAR RATINGS HELD BY THE BANKS PRIOR TO THE MERGER 9403020015 940302 BUSINESS BRIEF MCCLATCHY NEWSPAPERS INC COMPANY HOLDERS PLAN SALE OF 1350000 CLASS A SHARES MCCLATCHY NEWSPAPERS INC SACRAMENTO CALIF SAID THE COMPANY AND CERTAIN SHAREHOLDERS PLAN TO SELL 1350000 SHARES OF CLASS A COMMON STOCK IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE NEWSPAPER PUBLISHER SAID IT WILL ISSUE 750000 NEW SHARES WITH THE REMAINDER TO BE SOLD BY MEMBERS OF THE MCCLATCHY FAMILY AND A FAMILYESTABLISHED CHARITABLE FOUNDATION THE OFFERING WILL BE MANAGED BY GOLDMAN SACHS & CO AND MERRILL LYNCH & CO THE COMPANY SAID ITS SHARE OF THE PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES 9403020014 940302 BELL ATLANTIC'S CHAIRMAN SEES STRATEGY SHIFTING TO PATCHWORK OF SMALLER DEALS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SUBDUED BELL ATLANTIC CORP CHAIRMAN RAYMOND W SMITH MADE HIS FIRST PUBLIC APPEARANCE SINCE THE COLLAPSE OF HIS PLAN TO ACQUIRE TELECOMMUNICATIONS INC EMBRACING A MORE CAUTIOUS INTERACTIVE STRATEGY THAT HE HAD REJECTED JUST FOUR MONTHS AGO MR SMITH ADDRESSING ANALYSTS AT A PAINEWEBBER GROUP INC INDUSTRY CONFERENCE DEFENDED HIS DECISION TO PULL THE PLUG ON THE 16 BILLIONPLUS DEAL THAT HE HAD SPENT FOUR MONTHS CHAMPIONING HE SAID THE PHILADELPHIABASED REGIONAL TELEPHONE COMPANY NOW WILL SCRAP EFFORTS TO TEAM UP WITH ONE CABLE GIANT INSTEAD SEEKING MYRIAD PARTNERS FOR MANY DIFFERENT MARKETS BELL ATLANTIC WILL CONTINUE WITH PLANS TO BUILD INTERACTIVE NETWORKS SERVING 12 MILLION HOMES BY NEXT YEAR IN ITS OWN SIXSTATE MIDATLANTIC REGION THIS YEAR IT WILL SPEND 1 BILLION ON NEW NETWORKS MR SMITH SAID SIGNING UP SMALLER CABLE PARTNERS MARKET BY MARKET HOWEVER WILL PROBABLY RESULT IN A MUCH SLOWER PACE AS MR SMITH TRIES TO TURN BELL ATLANTIC INTO A NATIONAL PROGRAMMING POWER HAD HE SUCCEEDED IN ACQUIRING TCI THE BABY BELL WOULD HAVE HAD IMMEDIATE REACH INTO ABOUT 40 OF THE NATION'S HOMES MR SMITH CONCEDED THE NEW PATCHWORK APPROACH DOESN'T HAVE THE SWEEPING ELEGANCE OF THE MERGER BUT ADDED IT MAY HAVE MORE IMPORTANCE AND ATTRIBUTES THAN THE GRAND SIMPLICITY OF THE GRAND ALLIANCE THAT WAS IN SHARP CONTRAST TO THE VIEWS HE EXPRESSED WHEN THE TCI DEAL WAS UNVEILED OCT 13 IN AN INTERVIEW THAT DAY HE WENT TO GREAT LENGTHS TO EXPLAIN THE ADVANTAGES OF A MASSIVE MERGER OVER A PATCHWORK OF PARTNERSHIPS BELL ATLANTIC WOULD HAVE A CONTROLLED SITUATION YOU HAVE ALL OF THE PARTS WORKING TOGETHER HE SAID AT THE TIME THOSE MINORITY PARTNERSHIPS HAVE A WAY OF UNRAVELING AND THEY OFTEN DON'T HAVE THE PROMISE THAT THEY HAVE IN THE BEGINNING HE ADDED THOSE WORDS PROVED FATEFUL FOR BELL ATLANTIC WHICH WAS ULTIMATELY UNABLE TO AGREE WITH TCI ON A PURCHASE PRICE THE TWO OFFICIALLY PARTED WAYS LAST WEDNESDAY PROMISING TO PURSUE SMALLER VENTURES WITH EACH OTHER IN THE NEAR FUTURE BUT MR SMITH YESTERDAY INSISTED OUR VISION IS EXACTLY THE SAME AND HE SAID BELL ATLANTIC WAS RIGHT TO WITHDRAW FROM THE DEAL RATHER THAN PAY TOO HIGH A PRICE FOR TCI LAST WEEK WAS NOT A JOLLY WEEK FOR ME BUT IT WAS A CAKE WALK COMPARED WITH DEFENDING WHAT WOULD HAVE BEEN A VERY BAD DEAL FOR BELL ATLANTIC MR SMITH TOLD ANALYSTS NEW CUTS IN CABLE RATES IMPOSED BY THE FEDERAL COMMUNICATIONS COMMISSION WOULD HAVE REDUCED TCI'S ANNUAL CASH FLOW BY ALMOST 150 MILLION TRIGGERING A 17 BILLION DECLINE IN THE PRICE BELL ATLANTIC WAS WILLING TO PAY IT HAD OFFERED TO PAY 1175 TIMES TCI'S CASH FLOW YET TCI WOULDN'T CUT ITS ASKING PRICE AND INDEED DEMANDED AN EVEN GREATER AMOUNT OF BELL ATLANTIC STOCK BECAUSE OF THE DECLINE IN THAT COMPANY'S STOCK PRICE THE NEW DEMAND WOULD HAVE DILUTED THE REGIONAL PHONE COMPANY'S PERSHARE EARNINGS BY 50 RATHER THAN THE 35 MR SMITH HAD FIRST APPROVED THAT WAS SOMETHING I COULD NOT DO HE SAID HAD MR SMITH SUCCEEDED THE TCI DEAL WOULD HAVE BEEN ONE OF THE LARGEST EVER APPROACHING 33 BILLION IN TOTAL VALUE INCLUDING TCI DEBT THE ENSUING PUBLICITY TURNED THE LITTLEKNOWN BELL CHIEF INTO A MEDIA STAR ANY NEW PACT HE PURSUES HOWEVER WILL BE FAR MORE CONSERVATIVE WHEN WE DO MAKE AN INVESTMENT WE WON'T OVERPAY WE WON'T OVERBUILD AND WE WON'T OVERINVEST HE SAID THAT LESSISMORE APPROACH SHOULD KEEP BELL ATLANTIC SHAREHOLDERS HAPPY MR SMITH ADDED EVEN IF I NEVER MAKE IT INTO PEOPLE MAGAZINE AGAIN YESTERDAY BELL ATLANTIC CLOSED AT 5350 DOWN 125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON THE NASDAQ STOCK MARKET TCI'S CLASS A SHARES CLOSED AT 23125 DOWN 50 CENTS WHILE THE CLASS B SHARES CLOSED AT 2625 DOWN 125 9403020013 940302 SENATE DEFEATS BID TO MANDATE BALANCED BUDGET FOES DERIDE AMENDMENT AS GIMMICK HAMPERING CONGRESS'S PREROGATIVES BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE REPEATING WHAT HAS BECOME A FAMILIAR POLITICAL RITUAL IN THE ERA OF DEFICIT SPENDING NARROWLY DEFEATED A PROPOSED CONSTITUTIONAL AMENDMENT TO REQUIRE A BALANCED BUDGET THE 6337 VOTE IN FAVOR FOUR SHORT OF THE 67 NEEDED FOR PASSAGE FOLLOWED A WEEKLONG DEBATE IN WHICH SUPPORTERS LIKENED LARGE DEFICITS TO FISCAL CHILD ABUSE AND OPPONENTS DERIDED THE AMENDMENT AS A GIMMICK THAT WOULD INFRINGE ON CONGRESSIONAL PREROGATIVES AND DISFIGURE THE CONSTITUTION BUT IN THE END OVERWHELMING PUBLIC APPROVAL FOR THE IDEA WASN'T ENOUGH TO OVERCOME THE OPPOSITION OF THE WHITE HOUSE DEMOCRATIC LEADER GEORGE MITCHELL D ME AND MOST SIGNIFICANT OF ALL APPROPRIATIONS CHAIRMAN ROBERT BYRD D WVA LET US NOT CRUCIFY THIS CONSTITUTION ON A CROSS OF POLITICAL EXPEDIENCY DECLARED MR BYRD WHO WIELDS IMMENSE POWER OVER THE SPENDING DECISIONS CONGRESS MAKES WE MUST NOT FEED THE NATION THIS POISON PILL IN THE HOPES THAT IT WILL SOMEHOW FORCE US TO SCREW UP OUR COURAGE AND ACT THE PROPOSAL SPONSORED BY SEN PAUL SIMON D ILL WOULDN'T HAVE REQUIRED ANY SPECIFIC SPENDING CUTS OR TAX INCREASES BUT IT WOULD HAVE REQUIRED CONGRESS TO BALANCE THE GOVERNMENT'S BOOKS BY THE YEAR 2001 AND THEREAFTER UNLESS THREEFIFTHS MAJORITIES OF BOTH THE HOUSE AND SENATE VOTED TO PERMIT DEFICIT SPENDING THE PROPOSAL WOULD HAVE PROVIDED AN EXCEPTION FOR WARTIME SUPPORTERS ACKNOWLEDGED THAT THE BALANCEDBUDGET AMENDMENT WOULD BE AN ARTIFICIAL AND IMPERFECT SUBSTITUTE FOR ACTUALLY MAKING THE CHOICES NECESSARY TO BRING THE BUDGET INTO BALANCE EVERY TIME WE COME UP AGAINST TOUGH DECISIONS ON TAXES OR SPENDING CUTS WE FLINCH SAID SEN WILLIAM COHEN R MAINE WHO REVERSED HIS EARLIER OPPOSITION AND SAID HE WOULD BACK A BALANCEDBUDGET AMENDMENT AS A LAST RESORT OPPONENTS FOR THEIR PART DENOUNCED THE AMENDMENT AS A MONUMENT TO POLITICAL POSTURING THAT COULD SLASH SUCH PROGRAMS AS SOCIAL SECURITY AND DEFENSE AND GIVE LEGISLATIVE MINORITIES THE POWER TO BLOCK THE USE OF FISCAL POLICY TO SHORE UP THE ECONOMY IN HARD TIMES WRITING THIS KIND OF STRAITJACKET INTO THE NATION'S FOUNDING CHARTER COULD JEOPARDIZE OUR ECONOMY AND UNDERMINE THE PRINCIPLE OF MAJORITY RULE THAT IS AT THE CORE OF OUR DEMOCRACY SAID SEN EDWARD KENNEDY D MASS THE DEBATE'S SOARING RHETORIC CONTRASTS SHARPLY WITH THE NITTYGRITTY DETAILS OF ACTUALLY FASHIONING THE GOVERNMENT'S SPENDING PLAN WHICH WAS UNDER WAY ON THE OTHER SIDE OF THE CAPITOL HOUSE BUDGET COMMITTEE DEMOCRATS MET PRIVATELY TO BEGIN SEARCHING FOR ADDITIONAL CUTS IN THE WAKE OF NEW CONGRESSIONAL BUDGET OFFICE ESTIMATES SHOWING THAT PRESIDENT CLINTON'S 1995 BUDGET PROPOSALS WOULD EXCEED SPENDING CAPS SET IN LAW BY SOME 3 BILLION SOME REPUBLICAN ADVOCATES OF A BALANCEDBUDGET AMENDMENT WERE ALREADY LOOKING BEYOND YESTERDAY'S VOTE TO THE POLITICAL USES THAT CAN BE MADE OF THE ISSUE OF 37 SENATORS VOTING AGAINST MR SIMON'S AMENDMENT 34 WERE DEMOCRATS IT'S GOING TO BE A GOOD DEFINING ISSUE SAID SEN PHIL GRAMM R TEXAS HEAD OF THE NATIONAL REPUBLICAN SENATORIAL COMMITTEE AND A LIKELY 1996 PRESIDENTIAL CANDIDATE NOTWITHSTANDING STRONG SUPPORT FOR THE IDEA IN OPINION POLLS THE AMENDMENT'S POTENCY AS A POLITICAL WEAPON ISN'T CLEAR OF THE 34 SENATORS WHO VOTED AGAINST THE AMENDMENT IN 1986 ONLY ONE WAS SUBSEQUENTLY DEFEATED FOR REELECTION THE ISSUE MAY BE EVEN MORE DIFFICULT TO WIELD AT A TIME WHEN THE ECONOMY IS GROWING STEADILY AND THE DEFICIT IS SHRINKING THE DEFICIT WHICH THE CONGRESSIONAL BUDGET OFFICE PROJECTS AT 223 BILLION FOR THE CURRENT FISCAL YEAR IS EXPECTED TO DROP BELOW 170 BILLION BY 1996 ALTHOUGH RISING HEALTHCARE COSTS COULD DRIVE IT UP AGAIN BY THE END OF THE DECADE NEVERTHELESS THE AMENDMENT INSPIRED ENOUGH FEAR THAT OPPONENTS FELT THEY NEEDED AN ALTERNATIVE FOR WHICH SENATORS COULD VOTE EVEN AS THEY OPPOSED MR SIMON'S VERSION THE ALTERNATIVE OFFERED BY SEN HARRY REID D NEV AND DEFEATED BY A 7822 VOTE WOULD HAVE EXEMPTED SOCIAL SECURITY FROM CUTS AND PERMITTED DEFICIT SPENDING FOR INFRASTRUCTURE IMPROVEMENTS IT ALSO COULD BE WAIVED DURING RECESSIONS MR SIMON'S ALLIES DENOUNCED THE REID AMENDMENT AS A POLITICAL FIG LEAF BUT IT PROVIDED ENOUGH COVER TO ATTRACT THE VOTES OF 17 DEMOCRATS AND FIVE REPUBLICANS SEVEN OF THOSE DEMOCRATS BARBARA BOXER OF CALIFORNIA JOSEPH BIDEN OF DELAWARE KENT CONRAD OF NORTH DAKOTA RUSSELL FEINGOLD OF WISCONSIN THOMAS HARKIN OF IOWA HARLAN MATHEWS OF TENNESSEE AND MR REID HIMSELF SUBSEQUENTLY VOTED AGAINST MR SIMON'S PROPOSAL THAT PREVENTED MR SIMON FROM ROUNDING UP THE TWOTHIRDS MAJORITY 67 VOTES NEEDED TO PASS A CONSTITUTIONAL AMENDMENT SUPPORTERS OF THE BALANCEDBUDGET AMENDMENT STILL PLAN TO PURSUE THE ISSUE IN THE HOUSE CONSERVATIVE REP CHARLES STENHOLM D TEXAS HAS GATHERED ENOUGH SIGNATURES TO FORCE CONSIDERATION OF A BALANCED BUDGET AMENDMENT ON THE HOUSE FLOOR IN MIDMARCH MR STENHOLM HOPES ITS PASSAGE THERE WOULD FORCE THE SENATE TO RECONSIDER BUT MR MITCHELL SAID HE WOULD ABSOLUTELY NOT BRING IT UP AGAIN THIS YEAR 9403020012 940302 INTERNATIONAL GERMAN WAGES GREW FAR FASTER THAN RISE IN INDUSTRIAL OUTPUT FRANKFURT A SOBERING REPORT ON GERMAN LABOR COSTS AND DOUBTS ABOUT A 1994 RECOVERY SHOW WHY GERMAN EMPLOYERS ARE RESISTING UNION WAGE DEMANDS STRIKES OR NO STRIKES GERMANS WORKED FEWER HOURS AND WAGES ROSE FASTER AND HIGHER THAN IN ANY OTHER OF THE WORLD'S MAJOR ECONOMIES SINCE 1985 ACCORDING TO A STUDY RELEASED TUESDAY BY THE FEDERAL STATISTICS OFFICE ITS FINDINGS HELPED SUPPORT INDUSTRY CLAIMS THAT GERMAN MANUFACTURING WOULD DIE OUT OR SHIFT ABROAD UNLESS UNIONS AGREE TO LOWER LABOR COSTS STEELING INDUSTRY'S RESISTANCE TO UNION WAGE DEMANDS THIS YEAR ARE SIGNS THAT GERMANY'S ECONOMIC RECOVERY IS FALTERING NOT LEAST BECAUSE OF COST HANDICAPS INHERITED FROM A DECADE OF GENEROUS LABOR CONTRACTS AND SHORTENED WORKING WEEKS GERMANY'S CHAMBER OF INDUSTRY AND COMMERCE SAID TUESDAY THAT A RECENT SURVEY OF 20000 WESTERN GERMAN BUSINESSES REFLECTED CONTINUED PESSIMISM REGARDING 1994 BUSINESS PROSPECTS THE LEADING TRADE GROUP SAID IT EXPECTED THE WESTERN GERMAN ECONOMY TO POST NEAR ZERO EXPANSION THIS YEAR CONTRASTING WITH GOVERNMENT FORECASTS OF 05 TO 1 GROWTH GERMAN INDUSTRY SEES THE RECESSION AS HAVING BOTTOMED OUT BUT CONTENDS THAT WESTERN GERMANY WILL NEED A RISE IN EXPORT ORDERS TO GENERATE REAL GROWTH 9403020011 940302 ECONOMY HOME RESALES ROSE 123 IN JANUARY FROM YEAR BEFORE BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL EXISTINGHOME SALES ROSE 123 IN JANUARY FROM A YEAR EARLIER AS BUYERS TOOK ADVANTAGE OF RECORD LOW MORTGAGE RATES LATE LAST YEAR ON AN ANNUALIZED SEASONALLY ADJUSTED BASIS JANUARY SALES HIT 42 MILLION ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THE PACE WAS THE SECOND HIGHEST ON RECORD FOLLOWING THE SURGE IN DECEMBER JANUARY ACTIVITY SLID 3 FROM DECEMBER'S REVISED ANNUAL PACE OF 44 MILLION ALL REGIONS POSTED HEALTHY GAINS WITH CALIFORNIA OUTPACING THE NATION WITH A 202 JUMP IN ACTIVITY FROM A YEAR BEFORE EVEN THOUGH PRICES CONTINUE TO DROP THERE THE NUMBERS REFLECT SALES THAT ON AVERAGE TAKE 30 TO 90 DAYS TO CLOSE AND WERE THEREFORE LARGELY UNAFFECTED BY WINTER STORMS IN THE NORTHEAST AND MIDWEST THE BAD WEATHER HOWEVER IS EXPECTED TO DAMP SALES TO BE REPORTED IN SUBSEQUENT MONTHS MOREOVER SOME ANALYSTS WORRY THAT A FURTHER INCREASE IN INTEREST RATES COULD THROTTLE A HOUSING RECOVERY THE SHARP UPTICK IN INTEREST RATES COULD STRANGLE HOUSING SALES SAID WARREN LASKO EXECUTIVE VICE PRESIDENT AT THE MORTGAGE BANKERS ASSOCIATION THE BACKLOG OF DEMAND HAS ALREADY BEEN WORKED OFF SUBSTANTIALLY I'M REALLY CONCERNED MORTGAGE RATES WHILE STILL HISTORICALLY VERY LOW HAVE BEEN ASCENDING CONVINCING PEOPLE THAT NOW IS THE BEST TIME TO BUY A HOUSE LAST WEEK RATES HIT 744 FOR A CONVENTIONAL 30YEAR MORTGAGE MORE THAN HALF A PERCENTAGE POINT ABOVE THEIR 25YEAR LOW IN OCTOBER ACCORDING TO A SURVEY BY HSH ASSOCIATES A BUTLER NJ MORTGAGEDATA PUBLISHER WE'VE ALL BEEN A LITTLE POLYANNISH ON INTEREST RATES MR LASKO SAID THE MARKET IS JUST TOO NERVOUS TO LET RATES GO DOWN 9403020010 940302 LEISURE & ARTS BOOKSHELF EXTRAORDINARY IRISHMAN ON ORDINARY BRITONS BY JOE QUEENAN THE PUBLICITY MATERIALS ACCOMPANYING EXCURSIONS IN THE REAL WORLD KNOPF 201 PAGES 23 TRUMPET THE IRISHMAN WILLIAM TREVOR AS PROBABLY THE GREATEST LIVING WRITER OF SHORT STORIES IN THE ENGLISH LANGUAGE AND FOR ONCE THE PUBLICITY MATERIALS DO NOT LIE I READ MY FIRST BOOK OF TREVOR SHORT STORIES IN 1988 AND WITHIN SIX WEEKS I HAD POLISHED OFF NINE OF HIS BOOKS SINCE THERE WERE ONLY FIVE MORE TREVOR BOOKS LEFT TO READ AT THE TIME AND SINCE HE WAS ALREADY 60 I DECIDED TO RATION OUT THE REST OF HIS OEUVRE OVER THE 30 OR 40 MORE YEARS I RECKONED I STILL HAD COMING TO ME WITH ONLY A HANDFUL OF TRULY GIFTED SHORTSTORY WRITERS ALICE MUNRO MAVIS GALLANT TO KEEP US SHORTSTORY BUFFS GOING IT'S REALLY IMPORTANT TO KEEP A SOLID RESERVE AROUND FOR OLD AGE THE RECOGNITION MR TREVOR HAS RECEIVED IN RECENT YEARS DERIVES FROM TWO SOURCES A DECEPTIVELY SIMPLE TURN OF PHRASE AND AN ABILITY TO PORTRAY FLAWED WOUNDED CHARACTERS WHOSE PREDICAMENTS APPEAL TO READERS FROM VERY DIFFERENT CULTURES THOUGH MANY OF MR TREVOR'S BEST STORIES ARE SET IN IRELAND WHERE HE SPENT HIS YOUTH AS A PROTESTANT AMONG CATHOLICS MANY MORE ARE SET IN ENGLAND WHERE HE SPENT HIS LATER YEARS AS A FOREIGNER AMONG NATIVES IT IS A POWERFUL IRONY THAT MR TREVOR HAS DONE A FAR BETTER JOB OF DEPICTING THE LIFE OF THE AVERAGE BRITON THAN HAVE SUCH BETTERKNOWN WRITERS AS IRIS MURDOCH MARGARET DRABBLE AND ASSORTED PEOPLE NAMED IAN THEY PRODUCTS OF THE OXFORDCAMBRIDGE GLITTERINGPRIZES CIRCUIT SEEM INCAPABLE OF WRITING ABOUT ANYTHING OTHER THAN THE PREPACKAGED ENNUI THAT THEIR AGING BESTANDBRIGHTEST CHUMS NOW FEEL MR TREVOR A BANK CLERK'S SON LUCKY ENOUGH TO ATTEND TRINITY COLLEGE NEVER STRAYS FAR FROM HIS KNITTING THE VAST NUMBERS OF ORDINARY SHOPKEEPERS FARMERS SCHOOLTEACHERS SALESMEN AND DISAPPOINTED HOUSEWIVES WHO MAKE UP THE UNITED KINGDOM AND FOR THAT MATTER THE WORLD EXCURSIONS IN THE REAL WORLD IS A COLLECTION OF ESSAYS MOST OF THEM AUTOBIOGRAPHICAL THAT MR TREVOR WROTE FOR PUBLICATIONS AS DIVERSE AS THE NEW YORKER THE DAILY TELEGRAPH AND THE HUDSON REVIEW SINCE 1970 THEY EXPLAIN HOW A YOUNG PROTESTANT BORN INTO A MINORITY THAT ALL MY LIFE HAS SEEMED IN DANGER OF WITHERING AWAY COULD GROW UP TO CLAIM THE LITERARY MANTLE PREVIOUSLY WORN BY OSCAR WILDE JAMES JOYCE SEAN O'CASEY WILLIAM B YEATS AND SAMUEL BECKETT NONE OF WHOM HE RESEMBLES SETTING OUT TO BE A CLERK LIKE HIS FATHER HE WAS A DUD STUDENT I CANNOT WRITE TWENTY SENTENCES ON A DAY IN THE LIFE OF A SHOE AND DRIFTED INTO A BRIEF CAREER AS A COPYWRITER FOR AN AD AGENCY HE WASN'T VERY GOOD AT THAT EITHER HIS IDEA FOR A SLOGAN TO BOOST CANADIAN TOURISM WAS COME TO CANADA WHEN HIS BOSS WAS LOOKING FOR SOMETHING LINKING CANADA TO ITS GLORIOUS NORDIC PAST TAKE A LEIF FROM HIS BOOK WOULD HAVE DONE NICELY OFTEN MR TREVOR WRITES ABOUT MODEST PEOPLE WHO QUIETLY GO ABOUT ESCAPING THE MONOTONY OF THEIR LIVES ONE ESSAY CONCERNS A WELLEDUCATED WOMAN TRAPPED IN A MARRIAGE WITH A DULL ADMINISTRATOR AT THE SCHOOL MR TREVOR ATTENDED AS A BOY YEARS LATER HE DISCOVERS THAT THE WOMAN SECRETLY LIKED TO PLAY THE PONIES AND WAS PRETTY GOOD AT IT FORTYTHREE YEARS ON HE RECALLS THERE IS A WOMAN WHO OBEDIENT TO THE CODE OF THINGS NEVER REVEALED HER FEELINGS ABOUT THE HUMBUG OF SO MUCH THAT SURROUNDED HER A WOMAN WHO IS BORED BY MARRIED LIFE AND FAMILY LIFE AND THE PRETTY WORLD OF THE SCHOOL WHO IS MORE MYSTERIOUS THAN ANYONE EVER GUESSED AMID HIS REVERIES ABOUT A DRAB SEMIRURAL CHILDHOOD IN WHICH HE DREAMED EVERY DAY OF ESCAPING TO THE PARADISE THAT WAS CORK MR TREVOR REMEMBERS A SHOP EMPLOYEE MESMERIZED INTO THINKING HE WAS A CHICKEN BY A ROVING FRENCH HYPNOTIST WHO COULD NOT THEN UNDO THE SPELL RECALLING AN ITINERANT KNIFETHROWING ACT HE WRITES AFTERWARDS THE MAN'S WIFE CAME ROUND WITH A CAP FOR COPPERS THERE WERE ONLY A FEW CUTS ON HER AND THEY'D ALL HEALED LONG AGO HE WRITES AFFECTIONATELY OF A BOOKISH SCHOOLMATE WHO ENDS UP RUNNING A CARBATTERY FRANCHISE BUT NO LESS FONDLY OF A MAD COPYWRITER WHO USED TO WANDER AROUND THE AD AGENCY INSISTING THAT A DEAD CAT CRADLED IN HER ARMS WAS NOT ENTIRELY LIFELESS THE JEWEL IN THIS COLLECTION IS FIELD OF BATTLE ESSENTIALLY A POSTMORTEM OF HIS OWN PARENTS' DOOMED MARRIAGE WHAT CHILDREN OF A MARRIAGE RARELY WITNESS IS THE NATURE OF THE LOVE THAT BROUGHT THE WHOLE THING THEMSELVES INCLUDED INTO BEING IN THE FIRST PLACE THE MARRIAGE OF PARENTS IS ALMOST ALWAYS MYSTERIOUS THE SENSUAL ELEMENTS SCARCELY BEAR THINKING ABOUT THE ROMANTIC PAST CAN ONLY BE GUESSED AT AND ALL SUCH CURIOSITY INVARIABLY COMES TOO LATE HE WRITES OF THE WAR ZONE THAT HIS PARENTS' MARRIAGE BECAME THE AUTHOR RUEFULLY CONCLUDES THEY WERE VICTIMS OF THEIR INNOCENCE WHEN CHANCE THREW THEM TOGETHER AND PASSION BEGUILED THEM LEAVING THEM TO LIVE WITH A MISTAKE AND TO WATCH THEIR FIELD OF BATTLE EXPAND WITH EACH DAY THAT PASSED THEY GAVE THEIR LOVE TO THEIR CHILDREN AND WERE LOVED IN RETURN FIERCELY UNWAVERINGLY BUT NOT FOR A MOMENT COULD THAT HEAL THE WOUNDS THEY CARRIED TO THEIR GRAVES 9403020009 940302 WHAT'S NEWS BUSINESS AND FINANCE ECONOMIC GROWTH ROCKETED AHEAD AT A 75 PACE IN THE FOURTH QUARTER FASTER THAN THE 59 INITIALLY REPORTED THE POSSIBILITY OF CONTINUED FAST GROWTH COUPLED WITH A PURCHASING MANAGERS' REPORT SHOWING PRICE INCREASES IN FEBRUARY SPURRED INFLATION FEARS THE TREASURY'S 30YEAR BOND PLUNGED 1 1/2 POINTS DRIVING THE YIELD TO 677 THE DOW INDUSTRIALS FELL 2279 TO 380923 BUT THE INFLATION PICTURE IS FAR MORE AMBIGUOUS THAN THE MARKETS' SELLOFF SUGGESTS THE SENATE NARROWLY DEFEATED A PROPOSED CONSTITUTIONAL AMENDMENT TO REQUIRE A BALANCED BUDGET REPEATING WHAT HAS BECOME A FAMILIAR POLITICAL RITUAL IN THE ERA OF DEFICIT SPENDING A HOUSE TELECOMMUNICATIONS PANEL UNANIMOUSLY APPROVED TWO BILLS DESIGNED TO GIVE THE BELL TELEPHONE COMPANIES GREATER FREEDOM WHILE ENCOURAGING COMPETITION IN LOCAL SERVICE THE RAPID APPROVAL SUGGESTS THE BILLS MAY BE ON A FAST TRACK THROUGH CONGRESS STOCK MUTUALFUND SALES HIT A RECORD IN JANUARY BUT SMALL INVESTORS NOW ARE TURNING CAUTIOUS RETREATING FROM SOME BOND MUTUAL FUNDS AND CHOOSING THE LEASTRISKY STOCK FUNDS CLINTON WILL SOON ISSUE AN EXECUTIVE ORDER RENEWING A TOUGH TRADE PROVISION A MOVE THAT IS CERTAIN TO RATCHET UP TENSIONS WITH TOKYO THE MEASURE KNOWN AS SUPER 301 SINGLES OUT COUNTRIES FOR RETALIATION TIME WARNER SAID IT WILL DELAY THE LAUNCH OF ITS FULLSERVICE NETWORK SEVERAL MONTHS BECAUSE OF HOLDUPS CAUSED BY EQUIPMENT MAKERS SILICON GRAPHICS AND SCIENTIFICATLANTA THE DELAY IS A SETBACK TO TIME'S AMBITIOUS PLANS TO LEAD THE CABLE INDUSTRY ONTO THE INFORMATION SUPERHIGHWAY BELL ATLANTIC CHAIRMAN RAY SMITH ENDORSED A MORE CAUTIOUS INTERACTIVE STRATEGY THAT HE HAD REJECTED JUST FOUR MONTHS AGO IN HIS FIRST PUBLIC APPEARANCE SINCE THE COLLAPSE OF HIS PLAN TO ACQUIRE TELECOMMUNICATIONS PRUDENTIAL SECURITIES PUSHED SOME OF ITS BROKERS TO SELL THE FIRM'S OWN MUTUAL FUNDS ALMOST AS HARD AS ITS SOURED LIMITED PARTNERSHIPS ACCORDING TO INTERNAL BROKERAGEHOUSE DOCUMENTS COCACOLA INTRODUCED A LINE OF FRUIT DRINKS IN A BID TO CAPTURE A MAJOR PORTION OF THE 6 BILLION MARKET FOR ALTERNATIVE BEVERAGES WHICH INCLUDES JUICES TEAS AND SPARKLING WATERS UNION PACIFIC SAID IT AGREED TO ACQUIRE THE OIL AND GAS ASSETS OF CYPRUS AMAX MINERALS FOR 819 MILLION EXISTINGHOME SALES ROSE 123 IN JANUARY FROM A YEAR EARLIER AS BUYERS RUSHED TO CLOSE DEALS BEFORE MORTGAGE RATES CLIMBED THE PACE WAS THE SECOND HIGHEST ON RECORD U S WEST AND CABLE & WIRELESS ENCOUNTERED SOME PROBLEMS IN THEIR CELLULARPHONE JOINT VENTURE BUT THEIR SERVICE IS DOING BETTER THAN EXPECTED AND THE PHONE COMPANIES PLAN A 1932 MILLION EXPANSION FOR THE NETWORK CANADA'S ECONOMY PICKED UP MOMENTUM IN THE FOURTH QUARTER LED BY A STRONG RISE IN CAPITAL SPENDING AND A BIG INCREASE IN EXPORTS TO THE US THE COUNTRY'S GROSS DOMESTIC PRODUCT GREW AT AN ANNUAL RATE OF 38 DOUBLE THE PACE OF THE PREVIOUS THREE MONTHS A SENATE BANKING PANEL EMBRACED THE GOAL OF A LESS CUMBERSOME BANKSUPERVISORY SYSTEM BUT OPPOSED PARTS OF THE TREASURY'S PLAN TO CONSOLIDATE FOUR REGULATORY AGENCIES INTO ONE SOME SENATORS SUGGESTED THE WHITE HOUSE HAS TO ACCEPT COMPROMISES IF IT WANTS TO GET A PLAN THROUGH BONDS LEHMAN BROTHERS TREASURY INDEX 534988 OFF 6936 COMMODITIES OIL 1467 A BARREL UP 19 CENTS DOW JONES FUTURES INDEX 14497 OFF 085 SPOT INDEX 13135 OFF 014 DOLLAR 10460 YEN UP 010 17095 MARKS UP 00054 9403020008 940302 POLITICS & POLICY BOSNIA'S MUSLIMS CROATS TO ESTABLISH BINATIONAL' STATE BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BOSNIAN MUSLIMS AND CROATS AGREED TO FORM A BINATIONAL STATE RAISING THE DIPLOMATIC PRESSURE ON BOSNIA'S SERBS TO SEEK PEACE THE AGREEMENT THE PRODUCT OF A NEW US DIPLOMATIC ENGAGEMENT IN BOSNIA IS AIMED AT NOT ONLY ENDING SOME OF THE FIERCEST FIGHTING IN THE REGION BUT ALSO TO LAY THE BASIS FOR AN ECONOMICALLY VIABLE IF CONSIDERABLY SMALLER BOSNIAN STATE FURTHER STRENGTHENING ITS CHANCES FOR SURVIVAL THE NEW STATE WOULD BE LINKED ECONOMICALLY AND MILITARILY WITH CROATIA WHICH ALSO JOINED IN YESTERDAY'S SIGNING THE AGREEMENT BARELY MENTIONS BOSNIA'S SERBS WHO CONTROL ABOUT 70 OF THE TERRITORY IN BOSNIAHERZEGOVINA AND HAVE BEEN THE PRIMARY AGGRESSORS IN THE WAR BUT US OFFICIALS SAID THEY HOPED THAT BY CREATING A STRONGER OPPONENT FOR THE SERBS THE SERBS WOULD NOW BE FORCED TO GIVE UP SOME OF THE TERRITORY THEY HAVE SEIZED WHILE BOSNIA'S SERBS ALSO WILL BE INVITED TO JOIN THE NEW FEDERATION OF BOSNIAHERZEGOVINA US OFFICIALS CONCEDED THAT A MORE PROBABLE OUTCOME WOULD NOW BE A TWOWAY PARTITION BETWEEN THE NEW MUSLIMCROAT FEDERATION AND A BOSNIAN SERB REPUBLIC THE OFFICIALS HOWEVER WOULDN'T SAY WHAT ADDITIONAL MILITARY OR DIPLOMATIC PRESSURE MIGHT BE BROUGHT TO BEAR ON THE SERBS THERE ARE ALSO STRONG DOUBTS ABOUT WHETHER THE BOSNIAN MUSLIMS AND CROATS WOULD STICK TO THE AGREEMENT IF THE SERBS REFUSE TO CONCEDE ANY MORE TERRITORY IN RECENT WEEKS WHEN CONFRONTED BY THE THREAT OF WESTERN MILITARY ATTACK BOSNIA'S SERBS HAVE SHOWN THAT THEY CAN BE PRESSURED FIRST THEY WITHDREW THEIR HEAVY WEAPONS FROM AROUND SARAJEVO RATHER THAN RECEIVE AIR STRIKES BY NORTH ATLANTIC TREATY ORGANIZATION PLANES HOPING TO HEAD OFF A SIMILAR ULTIMATUM THEY AGREED YESTERDAY TO THE REOPENING OF TUZLA AIRPORT IN NORTHEASTERN BOSNIA FOR THE DELIVERY OF CRITICALLY NEEDED RELIEF SUPPLIES SECRETARY OF STATE WARREN CHRISTOPHER SAID THE AGREEMENT SHOWED THAT PEACE IS POSSIBLE IN BOSNIA BOSNIAN PRIME MINISTER HARIS SILADJIC SAID HE HOPED AND PRAYED THAT THIS IS A FIRST STEP TOWARD PEACE CONSCIOUS THAT MANY BOSNIAN PEACE AGREEMENTS HAVE BEEN ACCEPTED AND DISCARDED BEFORE US OFFICIALS WENT OUT OF THEIR WAY TO INVEST YESTERDAY'S CEREMONY WITH AS MUCH POMP AND CIRCUMSTANCE AS POSSIBLE AMONG THE LUMINARIES WITNESSING THE SIGNING IN THE STATE DEPARTMENT'S GILTANDMARBLE FRANKLIN ROOM WERE SECRETARY CHRISTOPHER DEFENSE SECRETARY WILLIAM PERRY JOINT CHIEFS OF STAFF CHAIRMAN JOHN SHALIKASHVILI AND A HOST OF DIPLOMATS INCLUDING A RUSSIAN REPRESENTATIVE IN HIS INTRODUCTORY REMARKS MR CHRISTOPHER ALSO HINTED AT SOME OF THE BROADER INCENTIVES AWAITING THE SIGNERS INCLUDING DESPERATELY NEEDED ECONOMIC RECONSTRUCTION HELP FROM THE WEST AS WELL AS PEACEKEEPERS FROM NATO AND THE US ONCE A BROADER AGREEMENT IS REACHED WITH THE SERBS CROATIA IN TURN WAS OFFERED A CHANCE TO BECOME PART OF THE WEST ACCORDING TO A SENIOR US OFFICIAL INCLUDING POSSIBLE MEMBERSHIP IN THE NATO'S PARTNERHSIP FOR PEACE PROGRAM AS WELL AS FUTURE ASSOCIATE STATUS IN THE EUROPEAN UNION MORE IMMEDIATELY ZAGREB IS EXPECTING THE WEST TO BACK ITS DEMANDS FOR THE RETURN OF THE ONETHIRD OF ITS TERRITORY NOW OCCUPIED BY THE SERBS THE 10PAGE FRAMEWORK AGREEMENT GOES INTO CONSIDERABLE DETAIL ABOUT HOW POLITICAL POWER WOULD BE SHARED BETWEEN MUSLIMS AND CROATS AT THE NATIONAL REGIONAL AND LOCAL LEVELS AND AMONG THE EXECUTIVE LEGISLATIVE AND JUDICIAL BRANCHES OF GOVERNMENT WHILE THE NEW FEDERATION WOULD BE DIVIDED INTO MAINLY ETHNIC MAJORITY CANTONS ALONG A SWISS OR BELGIAN MODEL THE RIGHTS OF THE MINORITIES IN EACH CANTON WOULD IN THEORY BE CLOSELY PROTECTED 9403020007 940302 BUSINESS BRIEF REA GOLD CORP PROCEEDS OF SPECIAL WARRANTS TO BE USED FOR GOLD MINE REA GOLD CORP SAID IT AGREED TO ISSUE 241 MILLION CANADIAN DOLLARS US178 MILLION OF SPECIAL WARRANTS THROUGH A PRIVATE PLACEMENT THE VANCOUVER BRITISH COLUMBIA MINING COMPANY SAID THE 138 MILLION SPECIAL WARRANTS WILL BE PRICED AT C175 US129 EACH EACH WARRANT WILL BE EXCHANGEABLE FOR ONE COMMON SHARE AND HALF A SHAREPURCHASE WARRANT EACH SHAREPURCHASE WARRANT WILL BE EXERCISABLE FOR ONE COMMON SHARE AT C2 UNTIL SEPT 30 1995 THE COMPANY ADDED REA CLOSED AT 150 UP 125 CENTS OR 91 IN NASDAQ STOCK MARKET TRADING REA'S TREASURER AND CHIEF FINANCIAL OFFICER RODNEY SHIER SAID PROCEEDS WILL BE USED TO ACQUIRE MOUNT HAMILTON MINING CO ELY NEV AND TO PUT ITS ONLY SIGNIFICANT ASSET A NEVADA GOLDMINING PROJECT INTO PRODUCTION 9403020006 940302 UNION STRIKES RAILWAY SEPARATELY MEMBERS OF THE UNITED TRANSPORTATION UNION WHICH REPRESENTS 7100 UNION PACIFIC EMPLOYEES WENT ON STRIKE SYSTEMWIDE AT 2 PM CENTRAL STANDARD TIME YESTERDAY IN A DISPUTE OVER USE OF COMPANY CARS TO TRANSPORT RAIL CREWS THE COMPANY CONFIRMED THAT RAIL OPERATIONS WERE HALTED IN A NUMBER OF LOCATIONS BUT SAID IT HAS ASKED A FEDERAL DISTRICT COURT IN OMAHA NEB FOR A TEMPORARY RESTRAINING ORDER TO HALT THE WORK STOPPAGE THE NUMBER OF EMPLOYEES WHO WENT ON STRIKE REPRESENT ABOUT A QUARTER OF UNION PACIFIC'S RAILROAD WORK FORCE THE UNION SAID THE COMPANY HAS BEEN REQUIRING TRAIN CREWS THAT HAVE ENDED THEIR SHIFT TO DRIVE COMPANY CARS TO GET TO THEIR OWN VEHICLES WHICH CAN BE A LENGTHY TRIP IN SOME LARGE RAILWAY YARDS SEE RELATED ARTICLE UNION PACIFIC ACQUIRES OIL GAS ASSETS OF CYPRUS AMAX IN 819 MILLION PACT WSJ MARCH 2 1994 9403020005 940302 BUSINESS BRIEF CHIQUITA BRANDS INTERNATIONAL INC FOOD CONCERN WILL REDEEM 18 MILLION OF DEBENTURES CHIQUITA BRANDS INTERNATIONAL INC CINCINNATI SAID IT WILL REDEEM MARCH 31 ITS 9 1/8 SUBORDINATED DEBENTURES DUE FEB 1 1998 THE MARKETER PROCESSOR AND PRODUCER OF FOOD PRODUCTS HAS ABOUT 18 MILLION OF THE DEBT OUTSTANDING CHIQUITA SAID THE DEBENTURES WILL BE REDEEMED AT 100 OF THE PAR VALUE PLUS ACCRUED INTEREST THROUGH THE REDEMPTION DATE BANK OF NEW YORK IS THE REDEMPTION AGENT 9403020004 940302 DH TECHNOLOGY BUYS COMPANY SAN DIEGO DH TECHNOLOGY INC COMPLETED THE PURCHASE OF ALL OF THE SHARES OUTSTANDING OF STADIA COLORADO CORP OF GOLDEN COLO FINANCIAL TERMS OF THE ACQUISITION WEREN'T DISCLOSED STADIA SUPPLIES BARCODE LABELING AND MARKING SOLUTIONS THE COMPANY'S 1993 REVENUE WAS ABOUT 8 MILLION 9403020003 940302 BUSINESS BRIEF CYTOGEN CORP COMPANY TO SELL 99 STAKE TO FLETCHER CAPITAL MARKETS CYTOGEN CORP SAID IT AGREED TO SELL A 99 INTEREST IN THE COMPANY TO FLETCHER CAPITAL MARKETS INC A NEW YORK INVESTMENT FIRM CYTOGEN A BIOPHARMACEUTICAL COMPANY BASED IN PRINCETON NJ SAID PROCEEDS WILL BE USED TO FUND BOTH LATESTAGE PRODUCT DEVELOPMENT ACTIVITIES AND EXPLORATORY BASIC RESEARCH WITHIN THE COMPANY AT CURRENT MARKET PRICES THE TRANSACTION WOULD BE VALUED IN EXCESS OF 12 MILLION THE AGREEMENT PERMITS FLETCHER INITIALLY TO BUY UP TO 14 MILLION NEW COMMON SHARES AND THE REMAINDER THROUGH APRIL 1995 9403020002 940302 INTERNATIONAL BOTSWANA A DIAMOND IN THE ROUGH TAKES CONSERVATIVE APPROACH TO RICHES BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL GABORONE BOTSWANA WHILE MANY AFRICAN LEADERS WORRY ABOUT FAMINE CORRUPTION AND COUPS THE LEADERS OF THIS TINY NATION THINK ABOUT MONEY A MAJOR CONCERN HOW SHOULD THEY INVEST THE 14 BILLION BOTSWANA EARNS EACH YEAR AS COOWNER OF THE WORLD'S RICHEST DIAMOND MINE ALTHOUGH BOTSWANA MAY RESEMBLE A PARCHED SCRUBLAND IT WAS THE FASTESTGROWING COUNTRY IN THE WORLD DURING THE PAST TWO DECADES WITH GROSS DOMESTIC PRODUCT EXPANDING AT AN AVERAGE ANNUAL RATE OF 145 BETWEEN 1970 AND 1980 AND 98 BETWEEN 1980 AND 1991 ACCORDING TO A SOONTOBERELEASED REPORT FROM THE WORLD BANK MOREOVER THE WORLD BANK SAYS BOTSWANA WHICH IT CONSIDERS TO BE ONE OF THE WORLD'S BESTMANAGED COUNTRIES IS AN UPPER MIDDLEINCOME ECONOMY IN THE SAME CATEGORY AS VENEZUELA AND SOUTH KOREA ON A CONTINENT BETTER KNOWN FOR POVERTY THAN PROSPERITY SUCH RANKINGS MAKE BOTSWANA ALONG WITH A HANDFUL OF OTHER AFRICAN COUNTRIES SUCH AS GABON AND MAURITIUS AN ANOMALY LOCATED ON THE NORTHERN SIDE OF THE MOLOPO RIVER FROM SOUTH AFRICA BOTSWANA IS PERHAPS BEST KNOWN FOR THE KALAHARI DESERT WHICH TAKES UP 70 OF THE COUNTRY'S LAND AND ITS CONSERVATION PARKS WHERE ELEPHANTS ZEBRAS AND GIRAFFES ROAM FREELY IT IS THE COUNTRY WHERE SPARSELY CLOTHED BUSHMEN STILL HUNT WITH BOWS AND ARROWS IN THE OKAVANGO DELTA UNTIL 30 YEARS AGO MOST OF THE COUNTRY'S RESIDENTS NOT JUST THE BUSHMEN WERE CAUGHT BACK IN TIME IN 1966 WHEN THE COUNTRY THEN KNOWN AS BECHAUANALAND GAINED INDEPENDENCE FROM BRITAIN IT WAS ONE OF THE FIVE POOREST COUNTRIES IN THE WORLD WITH A PER CAPITA ANNUAL INCOME OF ONLY 35 AND JUST 25 OF ITS CHILDREN ATTENDING SCHOOL ONE YEAR LATER DIAMONDS WERE DISCOVERED BENEATH THE KALAHARI SANDS THE BOTSWANA GOVERNMENT CUT A HANDSOME DEAL WITH SOUTH AFRICA'S DIAMOND LEADER DE BEERS CONSOLIDATED MINES INC BOTSWANA COLLECTS 85 OF THE INCOME FROM THE DEBSWANA DIAMOND CO DE BEERS POCKETS 15 CURRENTLY MORE THAN 50 OF THE COUNTRY'S EXPORT INCOME IS DERIVED FROM THE DIAMOND BUSINESS DIAMONDS POURED REVENUE INTO THE GOVERNMENT AND OUTSTRIPPED OUR ABILITY TO SPEND IT SAYS CENTRAL BANK GOVERNOR QUILL HERMANS WHAT WAS REMARKABLE IS THAT BOTSWANA DIDN'T BLOW IT HE ADDS POLITICAL ANALYSTS SAY THAT WHAT SEPARATES BOTSWANA FROM SO MANY OTHER RESOURCERICH AFRICAN COUNTRIES ISN'T THAT IT WAS GIVEN A GIFT BUT THAT IT USED ITS GIFT WISELY BOTSWANA RECYCLED DIAMOND REVENUE INTO EDUCATION HEALTH CARE CLEAN WATERS TELECOMMUNICATIONS AND ELECTRICITY TO MAKE THE COUNTRY APPEALING TO INTERNATIONAL BUSINESSES UNLIKE MANY OTHER AFRICAN NATIONS IT DIDN'T SUBSIDIZE STATEOWNED CORPORATIONS IT INVESTED IN PRIVATE CORPORATIONS ALWAYS INSISTING THAT IT BE PAID BACK ON TIME ONE OF THE REASONS WHY SO MANY AFRICAN COUNTRIES ARE IN SHAMBLES IS BECAUSE THEY PUT SO MUCH CAPITAL INTO ENTERPRISES AND EITHER FORGIVE THE LOANS OR FORGIVE THE INTEREST ON THE LOANS SAYS STEPHEN LEWIS JR PRESIDENT OF CARLTON COLLEGE AND A CONSULTANT TO THE GOVERNMENT HERE BOTSWANA'S LEADERS DON'T THROW MONEY AWAY THIS CONSERVATIVE APPROACH WAS BORN PARTLY OUT OF FEAR AS TINY BOTSWANA WAS DEPENDENT UPON ITS MUCH LARGER NEIGHBORS FOR 80 OF ITS GOODS AND SERVICES THERE WAS AN OVERWHELMING CONCERN THAT SOUTH AFRICA WOULD CLOSE THE BORDER AND STOP IMPORTS FROM MOVING INTO THE COUNTRY SAYS LIYANDA LEKALAKE A MEMBER OF BOTSWANA'S INVESTMENT TEAM AND SPECIAL ASSISTANT TO THE GOVERNORS OF THE BANK OF BOTSWANA JUST IN CASE BOTSWANA SAVED MONEY BORROWED VERY LITTLE AND IN 1976 REPLACED THE SOUTH AFRICAN RAND WITH ITS OWN CURRENCY THE PULA THOUGH THE POSSIBILITY OF A CONFLICT WITH SOUTH AFRICA NOW SEEMS REMOTE BOTSWANA MAINTAINS 4 BILLION IN FOREIGN RESERVES THE LARGEST PER CAPITA RESERVES OF ANY NONPETROLEUM COUNTRY IN FACT BOTSWANA'S PROXIMITY TO SOUTH AFRICA HAS BECOME A VALUABLE ASSET IN ATTRACTING FOREIGN INVESTMENT IF SOUTH AFRICA MAKES IT I WILL MAKE A FORTUNE IN BOTSWANA BECAUSE IT'S NEXT TO A POTENTIAL GOLD MINE IF SOUTH AFRICA DOESN'T MAKE IT I WON'T LOSE ANYTHING AND WILL STILL MAKE A GOOD RETURN SAYS JAMES B ROGERS JR A PROFESSIONAL INVESTOR AND HOST OF YOUR PORTFOLIO ON CABLE TELEVISION MR ROGERS WHO VISITED BOTSWANA SEVERAL YEARS AGO ENDED UP BUYING SHARES OF EVERY ONE OF THE 11 STOCKS ON THE FLEDGING BOTSWANA STOCK EXCHANGE NOT EVERYONE IS AS BULLISH HOWEVER SOME ANALYSTS SAY BOTSWANA IS SO SMALL AND THE REASONS FOR ITS GROWTH SO UNIQUE THAT IT SHOULD BE DISMISSED AS A MODEL FOR SUCCESS MORGAN STANLEY & CO ANALYST MICHEL ZUPARRIS FOR ONE SAYS THE COUNTRY WILL LIKELY REMAIN A SMALL BLIP ON THE WHOLE INDUSTRIAL PRODUCTION GRAPH FOR SOUTHERN AFRICA THE BIGGEST CHALLENGE IS TO CONVINCE THE CITIZENS MOST OF WHOM WOULD PREFER TO BE CATTLE RANCHERS THAT THERE IS LIFE OFF THE FARM INDEED AS THE KALAHARI DESERT ENCROACHES ON BOTSWANA'S ALREADY ARID LAND FARMING AND RANCHING ARE BECOMING LESS VIABLE OCCUPATIONS MOREOVER POLITICAL LEADERS STILL HAVEN'T BEEN ABLE TO RAISE THE LIVING STANDARD APPRECIABLY FOR MANY RURAL INHABITANTS SOME OF WHOM LIVE IN MUD HUTS WITH THATCHED ROOFS A TALENT DRAIN ALSO THREATENS THE COUNTRY MANY SOUTH AFRICANS WHO WERE ANTIAPARTHEID ACTIVISTS IMMIGRATED TO BOTSWANA DURING THE 1950S AND 1960S NOW THE CHILDREN OF THOSE EXILES ARE MOVING BACK TO SOUTH AFRICA TO TAKE ADVANTAGE OF POSSIBLE CAREER OPPORTUNITIES NOTHING IN BOTSWANA CAN COMPETE WITH THE SOPHISTICATION AND WESTERN LIFESTYLE IN SOUTH AFRICA BOTSWANA'S CAPITAL CITY OF GABORONE CAN APPEAR DESOLATE AS DRY WINDS CARRY TUMBLEWEEDS ACROSS PARCHED GRASS UNLIKE MANY OTHER AFRICAN CAPITALS GABORONE HAS NO LAVISH MONUMENTS OR GRANDIOSE BUILDINGS INSTEAD THE SEAT OF GOVERNMENT SITS ON A DUSTY LOT IN SEVERAL LOWRISE NONDESCRIPT BUILDINGS IT'S VERY SLEEPY AND QUIET AND DOCILE SAYS JEFFREY DUNSHEE MANAGING DIRECTOR OF THE AFRICA GROWTH FUND A VENTURE CAPITAL FUND MANAGED BY AN AFFILIATE OF EQUATOR BANK IN HARTFORD CONN THE FUND IS A MAJOR INVESTOR IN GABARONE'S SHERATON HOTEL THERE ARE FAR MORE EXCITING COUNTRIES IN WHICH TO INVEST THAN BOTSWANA BUT THAT'S THE POINT SAYS MR ROGERS THE INVESTOR NO IT'S NOT GENEVA OR MONTE CARLO BUT IF IT WERE IT WOULD BE TIME TO SELL NOT BUY HE SAYS PARAPHRASING THE STOCK MARKET DICTUM THAT IT IS MORE PROFITABLE TO BUY A STOCK WHEN IT'S UNPOPULAR AND CHEAP BOTSWANA MAY NOT HAVE FANCY BUILDINGS HE ADDS BUT IT DOES HAVE MODERN TELECOMMUNICATIONS AND OTHER AMENITIES YOU HAVE NO TROUBLE USING THE TELEPHONE AND FAX MACHINE HOW MANY DEVELOPING NATIONS CAN YOU SAY THAT ABOUT 9403020001 940302 PHELPS DODGE UNIT'S PURCHASE PHOENIX PHELPS DODGE MAGNET WIRE CO A UNIT OF PHELPS DODGE CORP SAID IT ACQUIRED THE ASSETS OF TEXAS MAGNET WIRE CO IN EL PASO TEXAS FROM REA MAGNET WIRE CO AND FUJIKURA INTERNATIONAL TERMS WEREN'T DISCLOSED PHELPS DODGE MAGNET WIRE ALSO PURCHASED THE LAURINBURG NC FINEWIRE BUSINESS OF REA MAGNET 9403020091 940211 RUSSIA'S DESTINY BY IRVING KRISTOL WORLD WAR II IS LONG SINCE OVER AND THE COLD WAR IS NOW OVER AS WELL BUT THE HABITS OF MIND FORMED OVER THE PAST HALFCENTURY OF FOREIGN POLICY TENACIOUSLY SURVIVE THESE HABITS OF MIND SURVIVE IN OUR VOCABULARY WHICH TRIES TO CAPTURE RUSSIAN REALITIES WITH SUCH TERMS AS DEMOCRACY AUTHORITARIAN COMMUNIST FASCIST EVEN PEACELOVING THAT VOCABULARY MAY HAVE HAD ITS USES IN DAYS OF POLITICAL CONFRONTATION BUT IT NOW SERVES ONLY TO FRUSTRATE OUR ABILITY NOT ONLY TO THINK BUT TO SEE THINGS AS THEY REALLY ARE LET US TRY TO CLEAR OUR HEADS BY LOOKING AT THESE REALITIES THERE ARE HARDLY ANY COMMUNISTS IN RUSSIA TODAY TRUE THERE ARE PEOPLE WHO CALL THEMSELVES COMMUNISTS AND THERE IS EVEN A COMMUNIST PARTY HERE AND THERE BUT THESE PEOPLE ARE NOT MARXISTLENINIST COMMUNISTS THEY DON'T BELIEVE IN COMMUNISM THEY MERELY OPPOSE BORIS YELTSIN'S DEMOCRATIC AND FREEMARKET REFORMS THEY DO BELIEVE THAT A MORE AUTHORITARIAN STATE AND A MORE COLLECTIVIST ECONOMY ARE MORE SUITABLE TO THE RUSSIAN CONDITION TODAY BUT THERE IS NO DANGER OF ANY KIND OF RETURN TO LENINISTSTALINIST COMMUNISM THE TRUE BELIEVERS IN THIS FAITH TODAY ARE PROBABLY OUTNUMBERED BY THOSE WHO FAVOR A RESTORATION OF THE CZAR WHAT THERE ARE IN RUSSIA ARE RUSSIANS OF DIFFERENT POLITICAL OUTLOOKS TO BE SURE BUT ALL OF THEM RUSSIAN PROBABLY THE MOST IMPORTANT SINGLE FACT ABOUT POSTGORBACHEV RUSSIA IS THE REEMERGENCE OF THE ORTHODOX CHURCH PEOPLE NOW GET MARRIED IN CHURCH AND ARE BURIED WITH APPROPRIATE RELIGIOUS RITES ORTHODOX PRIESTS AND BISHOPS ARE VISIBLE ON MOST STATE OCCASIONS RUSSIA IS NOT GOING TO BE A SECULAR SOCIETY COMMUNIST OR OTHERWISE AND IT MIGHT NOT EVEN BE A SECULAR STATE THE RUSSIANS HAVE LITTLE OR NO EXPERIENCE WITH DEMOCRACY OR INDIVIDUAL LIBERTY AS WE UNDERSTAND THESE IDEAS BUT THEY DO HAVE EXPERIENCE WITH WHAT MIGHT BE CALLED CONSTITUTIONAL IE NONARBITRARY GOVERNMENT LONG BEFORE THE RUSSIAN REVOLUTION THERE EXISTED A QUITE INDEPENDENT JUDICIARY ONE THAT MUCH OF THE TIME ANYHOW TOOK THE RULE OF LAW SERIOUSLY THERE WAS ALSO A HUGE CUMBERSOME BUREAUCRACY THAT WAS LEGALISTIC AND ONLY MODERATELY CORRUPT THIS TOO SERVED AS A CHECK ON ARBITRARY POWER AND BETWEEN 1905 AND THE OUTBREAK OF WORLD WAR I THERE EXISTED A PARLIAMENT THE DUMA THAT IT IS TRUE WAS MORE OF A SOUNDING BOARD THAN A LEGISLATIVE BODY BUT IT DID EXIST AND THE CZARIST REGIME RESPECTED ITS PREROGATIVES SO THERE IS REASON TO HOPE THAT A FUTURE RUSSIAN GOVERNMENT CAN BE LAW RESPECTING AND AT LEAST MILDLY REPRESENTATIVE A DECENT REGIME IN SHORT IF NOT WHAT WE WOULD CALL A DEMOCRATIC ONE OR EVEN A LIBERAL ONE IN ANY CASE IT WILL BE RUSSIAN NOT OF AMERICAN DESIGN THE RUSSIAN PEOPLE ARE EXTREMELY PATRIOTIC EVEN NATIONALIST AS PATRIOTIC AND NATIONALIST AS THE AMERICAN PEOPLE IT IS INTERESTING TO NOTE THAT WHILE FOR AMERICANS WORLD WAR II WAS FOUGHT FOR DEMOCRACY FOR RUSSIANS IT WAS AND IS THE GREAT PATRIOTIC WAR RUSSIANS COULD NOT BE MOBILIZED TO FIGHT FOR COMMUNISM HAVING WON THAT WAR AT THE COST OF MANY MILLIONS OF CASUALTIES RUSSIANS DO NOT NOW REGARD THEMSELVES AS A DEFEATED NATION THAT MUST ACCLIMATE ITSELF TO THE WAYS OF THE VICTORS THEIR DEFEAT IN THE COLD WAR IS SEEN AS A DEFEAT FOR A DISCREDITED REGIME NOT FOR THEIR NATION IT FOLLOWS THAT RUSSIANS TODAY AS IN THE PAST STILL THINK THAT THEIR NATION HAS A DESTINY NOT MERELY A FUTURE RUSSIA AND THE US SEEM TO BE THE ONLY TWO NATIONS THAT THINK OF THEMSELVES IN THIS WAY THOUGH CHINA IS YET TO BE HEARD FROM WHATEVER THEIR STRONG DESIRE FOR ECONOMIC GROWTH THEY HAVE NO INTENTION OF BECOMING A LANDLOCKED COUNTRY THEY WILL WISH TO INHABIT A GREAT NATION A NATION BOTH EUROPEAN AND ASIAN ONE RESPECTED BY THE WORLD AND IF THIS CREATES ANXIETY AMONG SOME OF THEIR NEIGHBORS THOSE NEIGHBORS WILL JUST HAVE TO LEARN TO LIVE WITH IT AND TO ADJUST THEIR FOREIGN POLICIES ACCORDINGLY THE NOTION OF A CORDON SANITAIRE OF EAST EUROPEAN NATIONS INTEGRATED INTO NATO IS NOT AND NEVER WILL BE ACCEPTABLE TO ANY RUSSIAN REGIME FORTUNATELY IT IS ALSO NOT ACCEPTABLE TO THE NATIONS OF WESTERN EUROPE AND THE US WHICH HAVE NO INTENTION OF BLITHELY ISSUING SECURITY GUARANTEES TO THE NEWLY LIBERATED COUNTRIES OF EASTERN EUROPE THIS RUSSIAN NATIONALISM HAS IT ALWAYS HAS HAD A LIMITED IMPERIAL DIMENSION THE COMMUNIST DREAMS OF WORLD LIBERATION ARE ABSOLUTELY DEAD RUSSIA'S IMPERIAL AMBITIONS TODAY FOCUS EXCLUSIVELY ON WHAT IT CALLS THE NEAR ABROAD THE 14 OTHER NATIONSTATES THAT HAVE EMERGED FROM THE COLLAPSE OF THE SOVIET REGIME NOT A SINGLE ONE OF THESE ENTITIES IS AN ECONOMICALLY AND POLITICALLY VIABLE NATIONSTATE THEY ARE RENT WITH RELIGIOUS AND ETHNIC CONFLICT AND IN ANY CASE HAVE LITTLE OR NO HISTORICAL SENSE OF NATIONHOOD TO BEGIN WITH THEY ARE ALL GOING TO BE CLIENT STATES OR SEMIPROTECTORATES OF RUSSIA THOUGH DOUBTLESS WITH MORE AUTONOMY THAN IN THE PAST ONLY THOSE WHOSE KNOWLEDGE OF WORLD HISTORY AND WORLD AFFAIRS IS LIMITED TO A READING OF THE UNITED NATIONS CHARTER CAN THINK OTHERWISE THIS ISSUE IS NOW BEING DECIDED IN THE CASE OF THE MOST POPULOUS NEW STATE UKRAINE BACK IN 1954 NIKITA KHRUSHCHEV BLANDLY GAVE THE CRIMEAN PENINSULA WITH ITS STRATEGIC POSITION ON THE BLACK SEA AND THUS AN ENTRY TO THE MEDITERRANEAN TO THE REPUBLIC OF UKRAINE THEN A SOVIET PUPPET BUT THE MAJORITY OF THE POPULATION OF CRIMEA IS RUSSIAN AND THEY HAVE JUST VOTED IN A REFERENDUM TO DISSOCIATE THEMSELVES FROM UKRAINE NATURALLY THE UKRAINIAN GOVERNMENT WHOSE ECONOMIC POLICIES ARE EVEN MORE SELFDESTRUCTIVE THAN RUSSIA'S AND WHOSE POLITICS ARE EVEN MORE DOMINATED BY NATIONALIST DEMAGOGY IS FURIOUS BUT ITS RESISTANCE IS WEAKENED BY THE FACT THAT THE EASTERN PORTION OF UKRAINE ITSELF IS MAINLY RUSSIAN AND THE UKRAINIAN GOVERNMENT HAS BEEN FOOLISHLY PROVOKING THIS VERY LARGE MINORITY THAT INHABITS AN AREA CONTIGUOUS WITH RUSSIA SO A RUSSIANUKRAINIAN SHOWDOWN LOOMS ONE THAT RUSSIA IS BOUND TO WIN AND WHAT WILL OUR STATE DEPARTMENT BE SAYING AND DOING WHILE ALL THIS IS GOING ON THE ONLY SURE PREDICTION IS THAT IT WILL BE LOST IN A MAZE OF IRRELEVANCIES THIS HAS BEEN THE CASE SINCE THE VERY DAY THAT MR YELTSIN CAME TO OFFICE THE FIRST AUTOMATIC UNTHINKING RESPONSE WAS AN INVOCATION OF THAT ALLAMERICAN PANACEA ECONOMIC AID SUCH AID MOVED ALONG TWO TRACKS AID FROM THE INTERNATIONAL MONETARY FUND WAS STRUCTURED TO ACHIEVE STRICT ECONOMIC OBJECTIVES OTHER AID WAS POLITICAL TO HELP THE GOOD GUYS IN RUSSIA MAINTAIN POWER BOTH STRATEGIES HAVE COLLAPSED IF THE RUSSIANS COULD HAVE FOLLOWED THE IMF DICTA THEY WOULDN'T HAVE NEEDED ITS AID IN THE FIRST PLACE AND POLITICIZED AID HAS INEVITABLY OFFENDED RUSSIAN PRIDE AND PRODUCED A NATIONAL BACKLASH THE RUSSIAN ECONOMY IS A SHAMBLES BECAUSE WELL BECAUSE THE RUSSIANS ARE RUSSIAN ECONOMICS HAS NEVER BEEN THEIR STRONG POINT THERE IS NOT MUCH THE US OR WESTERN EUROPE CAN DO ABOUT IT EXCEPT WATCH AND WAIT SOME NARROWLY TARGETED AID SUCH AS THAT FOR THE DISASSEMBLING OF DANGEROUSLY ARCHAIC NUCLEAR POWER PLANTS CAN EASILY BE JUSTIFIED SINCE SUCH PLANTS THREATEN THE WORLD BUT AID OF THIS KIND DOES NOT OFFER THE KIND OF MORALISTIC AURA WITH REGARD TO DEMOCRACY OR A MARKET ECONOMY THAT AMERICAN GOVERNMENTS TAKE TO BE A NECESSARY ACCOUTERMENT OF FOREIGN POLICY SHAMBLES OR NOT AT THIS TIME THERE WILL EVENTUALLY BE A RUSSIAN ECONOMY THAT RUSSIANS CAN LIVE WITH AND IN THE MEANTIME RUSSIA WILL MOVE TO CONFER SOMETHING LIKE PROTECTORATE STATUS ON THOSE 14 OTHER NEW NATIONS MOST OF WHOM ARE INHERENTLY UNSTABLE ONLY RUSSIA IS IN A POSITION TO PREVENT A DOZEN NEW BOSNIAS WHICH COULD THREATEN ITS OWN MULTIETHNIC CONDITION WILL WE PROTEST THIS INFRINGEMENT ON THE SOVEREIGNTY OF THOSE NEW STATES OF TURKMENISTAN UZBEKISTAN AZERBAIJAN PROBABLY OUR STATE DEPARTMENT BY NOW HAS AN INGRAINED HABIT OF THINKING LEGALISTICALLY NOT POLITICALLY WILL THERE BE ACTIONS AGAINST RUSSIA THE SECOND MAJOR NUCLEAR POWER IN THE WORLD HARDLY JUST INFLATED TALK AND POSTURING WATCHFUL WAITING IS WHAT WE NEED MORE OF IN OUR FOREIGN POLICY THAT IS NOT ISOLATIONISM IT IS SIMPLY A RECOGNITION THAT NEITHER OUR OWN NATIONAL INTEREST NOR THE CLAIMS OF HUMANITY REQUIRE SOME KIND OF CONSISTENT ACTIVIST INTERVENTIONIST FOREIGN POLICY AS A WORLD POWER WE ARE FREE TO EXERCISE OUR POWER RESPONSIBLY NOT DOGMATICALLY IN RESPONSE TO PREFABRICATED DOCTRINES THAT BLIND US TO REALITY MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST SEE RELATED LETTERS LETTERS TO THE EDITOR LET THE RUSSIAN IMPERIAL BEAR SLEEP WSJ MARCH 2 1994 9402110055 YY94 MM03 9403020020 940216 TEXAS JOURNAL NEW BUSINESS GROUP AIMS AT OLD GOAL TORT REFORM BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL TORT REFORMERS SMELL BLOOD OVER THE PAST YEAR CRITICS OF TEXAS' CIVILJUSTICE SYSTEM HAVE SCORED SOME IMPRESSIVE VICTORIES IN THEIR FIGHT AGAINST HUGE JURY AWARDS THE LATEST COUP A TEXAS SUPREME COURT RULING EARLIER THIS MONTH THAT IS EXPECTED TO SEVERELY LIMIT THE SIZE AND NUMBER OF PUNITIVEDAMAGE AWARDS BUT NOW A NEW COALITION OF BUSINESS EXECUTIVES AND PROFESSIONALS IS DETERMINED TO SPEED UP THE PACE OF CHANGE AND THEY ARE MOUNTING A MILLIONDOLLAR CAMPAIGN AIMED AT A TOPTOBOTTOM RESTRUCTURING OF THE TORT SYSTEM THE SYSTEM IS BROKEN SAYS RICHARD WEEKLEY A COMMERCIAL REALESTATE BROKER FROM HOUSTON AND LEADER OF THE COALITION UNLESS THERE IS SIGNIFICANT CHANGE IN THE NEXT SESSION OF THE LEGISLATURE HE SAYS HIS MEMBERS FEAR THEY MIGHT NOT BE HERE IN FIVE YEARS MR WEEKLEY'S COALITION WHICH INCLUDES STATE REALTOR AND ACCOUNTANT ASSOCIATIONS HOPES TO RAISE ABOUT 12 MILLION FOR RESEARCH AND POLLING INCLUDING ABOUT 500000 FOR SUPREME COURT AND LEGISLATIVE RACES THEIR GOAL A COMPREHENSIVE BILL THAT WOULD FURTHER CAP PUNITIVE DAMAGES BAR DECEPTIVETRADEPRACTICES LAWSUITS AGAINST PROFESSIONAL SERVICES AND LIMIT CAMPAIGN CONTRIBUTIONS IN JUDICIAL RACES THIS IS A FAR DIFFERENT APPROACH FROM THE ONE TAKEN BY THE TEXAS CIVIL JUSTICE LEAGUE THE PRIMARY BUSINESS TORTREFORM GROUP THE LEAGUE GETS CREDIT FOR SEVERAL SUCCESSES MOST NOTABLY A 1987 LAW THAT LIMITS PUNITIVE DAMAGES IN PERSONALINJURY CASES TO FOUR TIMES ACTUAL DAMAGES AND LAST SESSION'S PRODUCTLIABILITY BILL WHICH CURBED SOME SUITS OVER FAULTY PRODUCTS BOTH GROUPS PLAY DOWN ANY RIFT BUT THEY CLEARLY DISAGREE ON TACTICS FOR INSTANCE WHILE TEXAS CIVIL JUSTICE LEAGUE PRESIDENT RALPH WAYNE WELCOMES THE ALLIES HE WORRIES THAT IT WOULD BE HARMFUL TO HAVE TWO SEPARATE GROUPS WORKING ON TORT REFORM HE ADDS THAT SWEEPING LEGISLATION IS UNREALISTIC HIS GROUP UNSUCCESSFULLY TRIED SUCH AN APPROACH IN 1987 IN THE REAL WORLD OF POLITICS THAT DOESN'T HAPPEN MR WAYNE SAYS IF WE'RE EVER GOING TO GET ANYTHING DONE WE'RE GOING TO HAVE TO DO IT PIECEMEAL MR WEEKLEY SEES THINGS A BIT DIFFERENTLY I GUESS RALPH IS TRYING TO WORK WITH THE EXISTING SYSTEM HE SAYS WE THOUGHT MAYBE IF THERE WAS MORE OF A GRASSROOTS EFFORT WE COULD AUGMENT HIS EFFORTS BOTH GROUPS HOWEVER AGREE ON ONE THING THIS MONTH'S SUPREME COURT RULING WHILE HELPING IN PERSONALINJURY CASES DOESN'T DO MUCH TO REDUCE BIG AWARDS IN DISPUTES BETWEEN BUSINESSES THE CLOSELY WATCHED DECISION ESTABLISHES A TWOPART TRIAL WHEN PUNITIVE DAMAGES ARE AT ISSUE ONE TO DETERMINE LIABILITY AND THE SECOND TO SET DAMAGES AND GIVES APPEALS COURTS MORE POWER TO OVERTURN AWARDS THEY CONSIDER UNREASONABLE IT ALSO MAKES IT HARDER TO WIN PUNITIVEDAMAGE AWARDS AGAINST INSURERS IN DECEPTIVETRADEPRACTICES LAWSUITS BY SETTING A HIGHER STANDARD FOR DETERMINING A DEFENDANT'S GROSS NEGLIGENCE THE REFORMERS WANT TO SEE THIS STANDARD EXTENDED TO ALL PUNITIVEDAMAGE CASES SUCH AS LAST FALL'S 417 MILLION JURY AWARD AGAINST AMOCO CORP IN FAVOR OF TINY RUBICON PETROLEUM INC OF HOUSTON THE JUDGE HASN'T YET ENTERED A JUDGMENT IN THE CASE I DON'T THINK IT MAKES ANY SENSE TO HAVE THE STANDARD APPLIED IN PERSONALINJURY CASES AND NOT HAVE IT APPLIED WHEN ONE BUSINESS IS SUING ANOTHER BUSINESS SAYS SHANNON RATLIFF AN AUSTIN ATTORNEY SEE RELATED LETTER TEXAS JOURNAL LETTER TO THE EDITOR TORT REFORM CAPS AREN'T NEEDED WSJ MARCH 3 1994 9402160190 YY94 MM03 9403010182 940301 HEARD ON THE STREET TOBACCO STOCKS TAKE HIT ON FDA NEWS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS DECIDED THAT WASHINGTON'S STEPPEDUP INTEREST IN THE TOBACCO INDUSTRY IS A DRAG CIGARETTE MAKERS' STOCK PRICES FELL AS INVESTORS HAD THEIR FIRST CHANCE TO REACT TO THE FOOD AND DRUG ADMINISTRATION'S ANTITOBACCO BLAST WHAT WORRIED WALL STREET WAS THE FDA'S POTENTIALLY PROFITCRIPPLING SUGGESTION THAT THERE'S A LEGAL BASIS FOR THE AGENCY TO REGULATE CIGARETTES AS A DRUG A CHORUS OF ANALYSTS HAILED THE STOCKS' DROP AS A BUYING OPPORTUNITY BUT THEIR ENTHUSIASM FELL ON DEAF EARS TOBACCO STOCKS SLUMPED FOR MOST OF THE DAY PHILIP MORRIS LOST 2 TO 56 ON TWICENORMAL VOLUME OF NEARLY 43 MILLION SHARES RJR NABISCO HOLDINGS SLID 3/8 TO 6 7/8 ON ALMOST 55 MILLION SHARES WHY ALL THIS PAIN WHEN PRACTICALLY NOBODY THINKS THE FDA IS GOING TO GET AUTHORITY OVER TOBACCO EVEN FDA COMMISSIONER DAVID KESSLER SUGGESTED THE AGENCY WOULDN'T ACT WITHOUT A DIRECTIVE FROM CONGRESS FOR ONE THING THE FDA'S STANCE REKINDLED FEARS ABOUT THE CLINTON ADMINISTRATION'S ANTITOBACCO AGENDA SOME ANALYSTS SAID THE LATEST TOBACCO CONTROVERSY WILL MAKE IT EASIER FOR THE ADMINISTRATION TO WIN ITS PROPOSED BIG BOOST IN TOBACCO TAXES TO HELP PAY FOR HEALTHCARE REFORM ALSO SOME LAWYERS SAID THE FDA'S CONTENTION THAT TOBACCO COMPANIES MANIPULATE THE LEVEL OF NICOTINE IN CIGARETTES TO KEEP PEOPLE ADDICTED COULD LEAD TO A FRESH ROUND OF LAWSUITS AGAINST CIGARETTE MAKERS AT THE VERY LEAST THE LATEST TURMOIL HAS DASHED INVESTORS' REVIVING COMFORT WITH TOBACCO STOCKS FOLLOWING A DISRUPTIVE CIGARETTEPRICE WAR IN 1993 A NUMBER OF ANALYSTS CALLED INVESTORS' FLIGHT FROM TOBACCO STOCKS OVERBLOWN THE MARKET SEVERELY OVERREACTED SAYS GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO THIS IS A GREAT BUYING OPPORTUNITY TO BUY THESE STOCKS CHEAP A WEEK FROM NOW THESE STOCKS WILL BE HIGHER THAN THEY ARE TODAY ROY BURRY AN ANALYST WITH KIDDER PEABODY & CO DISMISSED TALK OF A POSSIBLE CIGARETTE BAN AS NOISE IT'S SOMETHING TO BE IGNORED BUT WHAT MANY INVESTORS IGNORED WERE THE BULLISH COMMENTS I'M STILL NEGATIVE ON THE TOBACCO COMPANIES SAID MIKE KENNEDY AN ANALYST FOR IDS FINANCIAL SERVICES INC I STILL HAVE SOME FUNDAMENTAL PROBLEMS WITH THE GROUP HE SAYS THE FDA REPORT HAS JOLTED PEOPLE WHO HAD GROWN APATHETIC ABOUT THE PROBABILITY OF A TOBACCOTAX INCREASE IT IS STILL OUT THERE IN FRONT OF US HE WARNS OTHERS SEE THE FDA STATEMENT AS PART OF THE ADMINISTRATION'S AGGRESSIVE STANCE ON TOBACCO ISSUES IN GENERAL I'M NOT SO SURE THAT THIS ISN'T A PART OF AN ADMINISTRATION EFFORT TO KEEP THE PRESSURE ON THE INDUSTRY IN TERMS OF THE EXCISE TAX SAYS MARC I COHEN TOBACCO ANALYST AT GOLDMAN SACHS & CO THE ADMINISTRATION HAS BEEN VERY CRAFTY THROUGHOUT THE HEALTHCARE DEBATE MR COHEN SAID NOW THAT THE COMPANIES ARE FACING THE HORRIFYING IF UNLIKELY PROSPECT OF FDA REGULATION PROTOBACCO LEGISLATORS MIGHT CHOOSE TO GIVE GROUND ON ANOTHER FRONT AND NOT FIGHT THE PROPOSED TRIPLING OF THE TOBACCO TAX SO HARD WHAT BOTHERS ME IS AS THERE ARE FEWER AND FEWER SMOKERS IT GETS EASIER POLITICALLY TO ATTACK THE TOBACCO COMPANIES SAYS RONALD THOMAS AN ANALYST AT ASB CAPITAL MANAGEMENT A PENSIONFUND MANAGER IN WASHINGTON WITH THE INDUSTRY UNDER INTENSE POLITICAL FIRE MANY ANALYSTS RECOMMEND AVOIDING TOBACCO STOCKS THE INDUSTRY IS UNDER ATTACK SAYS S LEIGH FERST AN ANALYST AT PRUDENTIAL SECURITIES THE STOCKS ARE GOING TO BE VOLATILE UNTIL LATELY LITIGATION THREATS HAD DIMINISHED CONSIDERABLY AFTER A STRING OF VICTORIES BY TOBACCO COMPANIES NOW THERE'S SOME FEAR THE LAWSUITS WILL REIGNITE IF EVIDENCE EMERGES THAT COMPANIES ARE IN FACT MANIPULATING THE AMOUNT OF NICOTINE IN CIGARETTES AS THE FDA CONTENDS THE SITUATION PROVIDES SEVERAL NEW AVENUES OF APPROACH AND UNDERMINES SOME OF THE DEFENSES AND POSITIONS WHICH THE TOBACCO INDUSTRY HAS SUCCESSFULLY TAKEN IN THE PAST SAYS RICHARD DAYNARD HEAD OF THE TOBACCO PRODUCTS LIABILITY PROJECT A GROUP OF ANTITOBACCO LAWYERS THAT MONITORS TOBACCO LITIGATION THE FDA'S STATEMENT THAT THERE IS GROWING EVIDENCE THAT CIGARETTE MAKERS MANIPULATE THE LEVEL OF NICOTINE IN CIGARETTES IS LIKELY TO ENCOURAGE PLAINTIFFS' PRODUCTLIABILITY LAWYERS TO RECONSIDER TOBACCO LITIGATION EVEN A STRONG STATEMENT BY PHILIP MORRIS THE NATION'S LARGEST TOBACCO COMPANY FAILED TO STEM THE SELLING THE COMPANY SAID THAT THE FDA HASN'T ANY BASIS TO REGULATE TOBACCO AND THAT NOTHING IS DONE IN THE PROCESSING OF TOBACCO THAT INCREASES THE AMOUNT OF NICOTINE IN CIGARETTES ABOVE THAT FOUND NATURALLY IN TOBACCO THE NICOTINE CONTROVERSY WAS SPARKED BY AN ABC NEWS DAY ONE INVESTIGATION THAT ALLEGES THE TOBACCO INDUSTRY HAS BEEN ADDING NICOTINE TO CIGARETTES IN ORDER TO ENHANCE THE ADDICTIVE QUALITY OF CIGARETTES RJ REYNOLDS THE NATION'S SECONDLARGEST TOBACCO COMPANY DISMISSED THE ALLEGATIONS AS LUDICROUS BULLISH ANALYSTS SAY NO MATTER HOW HOSTILE THE ADMINISTRATION IS TO TOBACCO IT WILL TAKE CONGRESSIONAL ACTION TO IMPOSE ANY MEANINGFUL TAX INCREASES OR CHANGES IN REGULATORY OVERSIGHT WITH 25 OF THE POPULATION STILL SMOKING SUCH HARSH ACTIONS ARE CONSIDERED UNLIKELY TO SAY THE LEAST SMOKERS ARE QUICK TO POINT OUT THAT PROHIBITION DIDN'T WORK AND THAT A BLACK MARKET IN LIQUOR QUICKLY DEVELOPED MOREOVER PRESIDENT CLINTON'S PLAN TO RAISE THE CIGARETTE TAX BY 75 CENTS A PACK TO NEARLY 1 A PACK IS LINKED TO HIS HEALTHCARE REFORMS A PLAN WITH AN UNCERTAIN POLITICAL FUTURE AS A RESULT BULLS LIKE MR BLACK OF BERNSTEIN SAY TOBACCO STOCKS ARE LIKELY TO BOUNCE BACK IN THE NEXT DAY OR TWO PHILIP MORRIS IS NOW SELLING AT BELOW 10 TIMES 1995 PROJECTED EARNINGS HE SAID THREE WEEKS FROM NOW WE ARE GOING TO LOOK BACK AND SAY THERE WAS ANOTHER BUYING OPPORTUNITY AND I MISSED IT 9403010181 940301 RHONEPOULENC GAINS APPROVAL OF SALT RINSE IN CHICKEN PROCESSING CRANBURY NJ RHONEPOULENC INC SAID IT RECEIVED PRELIMINARY FEDERAL APPROVAL TO USE A SALTRINSE SOLUTION IN CHICKEN PROCESSING THAT IS NEARLY 100 EFFECTIVE AT ELIMINATING SALMONELLA AND SOME OTHER BACTERIA THAT CAUSE FOODBORNE ILLNESSES A SPOKESMAN FOR THE NATIONAL BROILER COUNCIL A TRADE GROUP OF CHICKEN PRODUCERS AND PROCESSORS SAID THE COUNCIL IS OPTIMISTIC OF A FAIRLY RAPID VOLUNTARY ADOPTION OF THE PROCESS BY THE INDUSTRY RHONEPOULENC IS A UNIT OF RHONEPOULENC SA A CHEMICAL COMPANY IN PARIS CURRENTLY POULTRY IS RINSED IN CHLORINATED WATER THE AGRICULTURE DEPARTMENT APPROVED IRRADIATION OF POULTRY IN 1992 BUT SO FAR NO NATIONAL BRAND PROCESSOR HAS SOLD IRRADIATED POULTRY BECAUSE OF FEARS OF A CONSUMER BACKLASH RHONEPOULENC'S SOLUTION CALLED AVGARD CONTAINS THE COMPOUND TRISODIUM PHOSPHATE WHICH ALREADY IS USED AS A PROCESSING AID IN THE PRODUCTION OF CERTAIN CHEESES CEREALS AND BAKED GOODS THE AGRICULTURE DEPARTMENT IS CONDUCTING A RULEMAKING PROCEEDING TO MAKE ITS ADMINISTRATIVE APPROVAL FINAL ALTHOUGH RHONE CAN SELL ITS NEW PROCESS IMMEDIATELY THE AGENCY SAID RICHARD V KENNEDY GENERAL MANAGER OF RHONEPOULENC'S FOODINGREDIENTS DIVISION SAID THE USDA HAD GIVEN A PREVIOUS APPROVAL FOR THE USE OF THE RINSE IN THE POSTCHILL PHASE OF POULTRY PROCESSING IN PREPARATION FOR REFRIGERATION HOWEVER HE SAID POULTRY COMPANIES BALKED AT ADOPTING THE TECHNOLOGY BECAUSE IT IS DIFFICULT TO RETROFIT THAT AREA OF THE PROCESSING PLANT WITH A RINSING TANK ON THE OTHER HAND PLANTS HAVE MORE FLEXIBILITY TO INSTALL A RINSE TANK BEFORE THE BIRDS GET TO THE CHILLING PROCESS CAROLINE SMITH DEWALL OF PUBLIC VOICE FOR FOOD AND HEALTH POLICY A CONSUMER GROUP SAID THE USE OF TRISODIUM PHOSPHATE MAY BE A GOOD QUICK FIX FOR POULTRY BUT SHE SAID IT DOESN'T ADDRESS MANY OF THE PROBLEMS IN THE INDUSTRY SUCH AS OVERCROWDING IN COOPS THAT GIVE RISE TO BACTERIA IN CHICKENS TO BEGIN WITH