MEXICO CITY FOR WEEKS BERNARDO DOMINGUEZ WAS BARELY NOTICED AS HE TRIED TO BUY MOST OF THE WESTIN HOTELS & RESORTS CHAIN HE WROTE LETTERS TO THE OWNERS EVERY THREE OR FOUR DAYS WITHOUT RESPONSE FINALLY ON DEC 28 THE VIRTUALLY UNKNOWN MEXICAN BUSINESSMAN GOT A FAX SAYING HE WOULD GET HIS CHANCE TO NEGOTIATE WITH THE OWNER AOKI CORP OF JAPAN THE PROBLEM IS THAT DEC 28 IS THE MEXICAN VERSION OF APRIL FOOL'S DAY I THOUGHT SHOULD I BELIEVE IT MR DOMINGUEZ SAYS IN AN INTERVIEW HE DID AND AS A RESULT PUT TOGETHER AN AGREEMENT TWO WEEKS AGO TO BUY THE PROPERTIES FOR 708 MILLION A GROUP LED BY MR DOMINGUEZ WILL BUY WESTIN OPERATIONS IN NORTH AMERICA SOUTH AMERICA AND EUROPE THESE INCLUDE 52 MANAGED HOTELS 10 OF WHICH ARE MAJORITY OR WHOLLY OWNED BY WESTIN BASED IN SEATTLE MR DOMINGUEZ'S DEAL SHOCKED THE CLUBBY MEXICAN BUSINESS ESTABLISHMENT HE AND HIS PRIVATELY HELD DSC SA ARE SO LITTLEKNOWN THAT WHEN INITIAL REPORTS CIRCULATED ABOUT THE PLANNED PURCHASE MANY PEOPLE THOUGHT THE BUYER HAD TO BE DESC SA A LARGE PUBLICLY TRADED CONGLOMERATE MR DOMINGUEZ MAY YET DISAPPEAR FROM VIEW ALMOST AS FAST AS HE APPEARED PEOPLE CLOSE TO THE BIDDING SAY MOST OF THE FINAL BIDS WERE 400 MILLION TO 500 MILLION WHILE MR DOMINGUEZ MADE THE UNUSUAL MOVE OF AGREEING TO PAY THE ASKING PRICE MANY OF THE OTHER BIDS INCLUDED RIGHTS TO THE WESTIN NAME IN ASIA WHILE MR DOMINGUEZ'S DID NOT MR DOMINGUEZ IS ALSO PUTTING HIMSELF AT RISK BECAUSE HE IS BETTING ON THE FUTURE HE IS AGREEING TO BUY A TYPE OF BUSINESSCLASS HOTEL THAT IS EXPECTED TO RECOVER FROM THE INDUSTRY'S RECESSION MORE SLOWLY THAN OTHER TYPES OF HOTELS HE IS ALSO ASSUMING HE CAN EXPAND WESTIN'S BUSINESS FASTER THAN AOKI COULD EVEN THOUGH HIS ENTIRE HOTEL EXPERIENCE CONSISTS OF RUNNING A MODEST FIVEHOTEL CHAIN BUT MR DOMINGUEZ WHO IS JUST 33 YEARS OLD MAY ALSO COME TO SYMBOLIZE A NEW BREED OF MEXICAN BUSINESSMAN WHO IS WILLING TO TAKE BIG CHANCES TO TRY TO REAP BIG REWARDS RICARDO SALINAS PLIEGO IN HIS LATE 30S ALSO DRASTICALLY OUTBID HIS MOREESTABLISHED COMPETITION TO BUY TWO TELEVISION NETWORKS LAST SUMMER THE LIST OF SUCH YOUTHFUL RISKTAKERS SEEMS TO BE GROWING MR DOMINGUEZ GREW UP IN THE CITY OF CHIHUAHUA NEAR THE TEXAS BORDER WHERE HIS FATHER OWNED A SMALL LUMBERYARD MR DOMINGUEZ SAYS HE DECIDED AT 13 THAT HE WANTED TO STRIKE OUT ON HIS OWN AS AN ENTREPRENEUR HE ATTENDED THE HIGHLY REGARDED INSTITUTO TECNOLOGICO DE ESTUDIOS SUPERIORES DE MONTEREY ON A SCHOLARSHIP THEN STUDIED AT THE LONDON SCHOOL OF ECONOMICS AND AT WHARTON BUSINESS SCHOOL HE RETURNED TO MEXICO IN 1983 JUST IN TIME FOR THE COUNTRY'S ECONOMIC CRISIS THE SOFTSPOKEN CHUNKY MR DOMINGUEZ SAYS HE BEGAN BY CONSULTING ON CORPORATE RESTRUCTURINGS ONE OF HIS EARLY ASSIGNMENTS INVOLVED WORKING WITH A CONSTRUCTION COMPANY AND HE SAYS I FELL IN LOVE WITH IT SO WHEN THE EARTHQUAKE OF 1985 DEVASTATED MEXICO CITY HE TOOK HIS BIGGEST CHANCE AND DECIDED TO PUT TOGETHER A CONSTRUCTION COMPANY AND MOVE TO MEXICO CITY HE AND A PARTNER SCRAPED TOGETHER 100000 AND HAD A HARD TIME GETTING TAKEN SERIOUSLY BUT AFTER LOSING SEVERAL BIDS IN 1986 I GOT MY FIRST CONTRACT BECAUSE NOBODY ELSE WANTED IT MR DOMINGUEZ SAYS HIS INEXPERIENCED COMPANY NEEDED TO BUILD 160 HOMES IN 90 DAYS SO MR DOMINGUEZ HAD HIS CREWS WORK 24 HOURS A DAY HE SAYS THEY FINISHED THE WORK IN 83 DAYS AND WHILE THEY DIDN'T MAKE ANY MONEY ESTABLISHED THEMSELVES AS CREDIBLE BUILDERS WHEN THE CONSTRUCTION BUSINESS SLOWED MR DOMINGUEZ BEGAN MOVING QUICKLY FROM ONE THING TO ANOTHER HE EXPANDED FIRST INTO REALESTATE DEVELOPMENT BUYING DISTRESSED UNFINISHED PROPERTIES FROM BANKS ON THE ASSUMPTION THAT HIS CONSTRUCTION COMPANY COULD COMPLETE THEM QUICKLY AND SELL THE PROPERTIES FOR A FAST PROFIT REALESTATE DEVELOPMENT GOT HIM INTERESTED IN HOTELS HOTELS LED TO TOURISM AND MR DOMINGUEZ BOUGHT A TRAVEL AGENCY ALONG THE WAY MR DOMINGUEZ'S DSC ALSO ACQUIRED TWO CHAINS OF HARDWARE STORES THE COMPANY HAS GROWN TO WHAT MR DOMINGUEZ SAYS IS CLOSE TO 200 MILLION OF REVENUE A YEAR HE ACKNOWLEDGES THAT THE COMPANY IS RESTRUCTURING NOW BUT SAYS IT'S NOT FOR LACK OF CASH HE SAYS MEXICO'S TRIPLEDIGIT INFLATION DURING PARTS OF THE 1980S MADE DEBT A GOOD THING BECAUSE IT COULD BE REPAID WITH INFLATED PESOS WITH INFLATION NOW DOWN TO SINGLE DIGITS THOUGH HE IS TRYING TO REARRANGE HIS FINANCES TO TURN DEBT INTO EQUITY IN ANY CASE MR DOMINGUEZ SAYS HE IS DOING THE WESTIN DEAL PERSONALLY NOT THROUGH DSC HE SAYS HE AND A FEW PARTNERS WILL PUT UP MORE THAN 20 OF THE PURCHASE PRICE AND FINANCE THE REST THROUGH PREFERRED STOCK AND VARIOUS TYPES OF DEBT TOLD THAT SOME BANKERS HAVE QUESTIONED WHETHER HE CAN COME UP WITH SO MUCH MONEY OVER THE NEXT FEW MONTHS THE EVERPOSITIVE MR DOMINGUEZ LOWERS HIS VOICE TO A WHISPER AND SAYS YOU KNOW IT'S AMAZING I'VE BEEN GETTING CALLS FROM ALL OVER THE WORLD FROM PEOPLE WHO WANT TO INVEST IF I HAD TO I COULD COME UP WITH THE MONEY TOMORROW PAULINE YOSHIHASHI IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9403010179 940301 INTERNATIONAL NISSAN MOTOR AFFILIATE TO SHUT ASSEMBLY LINE AT JAPAN TRUCK PLANT TOKYO NISSAN MOTOR CO'S TRUCKMAKING AFFILIATE WILL CLOSE AN ASSEMBLY OPERATION IN 1996 IN THE LATEST STEP TOWARD CONSOLIDATING JAPAN'S BLOATED AUTOMOTIVE INDUSTRY JAPAN'S CAR AND TRUCK MAKERS HAVE BEEN SLAMMED BY A STEEP DROP IN DEMAND FOR VEHICLES SINCE 1990 BUT THEY HAVE BEEN HESITANT TO CUT FACTORY CAPACITY ANALYSTS THINK MORE SHUTDOWNS WILL FOLLOW AS AUTO MAKERS REALIZE THAT SALES PROBABLY WON'T REVISIT PEAK LEVELS FOR YEARS TO COME THIS APPEARS TO BE THE FIRST MAJOR CLOSING BY A TRUCK MAKER AND IT'S NOT GOING TO BE THE END SAID PETER BOARDMAN OF UBS SECURITIES LTD NISSAN DIESEL MOTOR CO 40OWNED BY NISSAN MOTOR SAID IT WILL CLOSE A MIDSIZETRUCK ASSEMBLY LINE IN GUNMA JAPAN IN 1996 AND SHIFT PRODUCTION TO ANOTHER DOMESTIC FACTORY A SPOKESWOMAN SAID THE ACTION WILL SAVE ONE BILLION YEN 96 MILLION A YEAR AND REDUCE THE COMPANY'S CAPACITY 20 TO 80000 VEHICLES A YEAR THE COMPANY WON'T CUT STAFF AND WILL KEEP THE PLANT OPEN MAKING ENGINES AND TRANSMISSIONS ANALYSTS SAY THAT WILL LIMIT THE COST SAVINGS ACHIEVED BY THE LINE CLOSING NISSAN MOTOR JAPAN'S NO 2 AUTO MAKER HAS TAKEN THE MOST SIGNIFICANT STEPS IN THE INDUSTRY TO REDUCE EXCESS CAPACITY IT STUNNED THE NATION A YEAR AGO BY ANNOUNCING IT WILL SHUT ITS ZAMA CARASSEMBLY PLANT IN 1995 THE ZAMA CLOSING WILL TRIM NISSAN'S OVERALL PRODUCTION CAPACITY BY 10 9403010178 940301 INTERNATIONAL HSBC HOLDINGS UNIT POST 1993 EARNINGS EXCEEDING FORECASTS HONG KONG HSBC HOLDINGS PLC AND ITS SUBSIDIARY HANG SENG BANK LTD BOTH REPORTED SLIGHTLY BETTERTHANEXPECTED EARNINGS FOR 1993 BUT ACKNOWLEDGED THAT THE GOOD RESULTS STEMMED LARGELY FROM STRONG CAPITAL MARKETS IN THE YEAR RATHER THAN FROM STRONG GROWTH IN THEIR INCOME FROM LOANS HSBC REPORTED AFTERTAX EARNINGS OF 18 BILLION 268 BILLION 48 OVER THE 1992 FIGURE EQUIVALENT TO A 44 RISE IN HONG KONG DOLLAR TERMS ANALYSTS HAD EXPECTED AN INCREASE OF ROUGHLY 37 HSBC'S EARNINGSPERSHARE ROSE A SLOWER 16 TO 72 PENCE REFLECTING THE FULL CALCULATION THIS YEAR OF SHARES ISSUED DURING ITS 1992 BUYOUT OF MIDLAND BANK PLC HANG SENG BANK'S AFTERTAX PROFITS ROSE 18 TO HK62 BILLION US8016 MILLION SLIGHTLY OUTPACING ANALYSTS' EXPECTATIONS OF A 17 INCREASE ITS EARNINGS PER SHARE ALSO ROSE BY 17 HANG SENG BANK IS 615OWNED BY HSBC HOLDINGS BOTH BANKS ANNOUNCED DIVIDEND INCREASES OF 24 A SHARE HSBC ALSO ANNOUNCED AN ENHANCED SCRIP DIVIDEND ALTERNATIVE UNDER WHICH SHAREHOLDERS CAN RECEIVE A 53 LARGER DIVIDEND PER SHARE IF THEY ACCEPT A PORTION OF IT IN STOCK RATHER THAN CASH BOTH BANKS GAVE ANALYSTS THE MOST COMPREHENSIVE DISCLOSURE OF THEIR BUSINESSES EVER PREVIOUSLY THE BANK AND MOST OTHERS IN HONG KONG SIMPLY ANNOUNCED ITS CONSOLIDATED EARNINGS BEFORE AND AFTER TAXES WITHOUT DESCRIBING THE PROFITABILITY OF ITS VARIOUS OPERATIONS 9403010177 940301 TECHNOLOGY CORNING UNIT TO SELL SOME LAB OPERATIONS IN 50 MILLION PACT CORNING NY CORNING INC SAID ITS METPATH SUBSIDIARY WOULD SELL THE ASSETS OF ITS DAMON CLINICAL LABORATORY TESTING OPERATIONS IN CALIFORNIA TO PHYSICIANS CLINICAL LABORATORY INC SACRAMENTO CALIF FOR APPROXIMATELY 50 MILLION PLUS THE ASSUMPTION OF CERTAIN LIABILITIES PROCEEDS WILL BE USED TO RETIRE SOME DEBT FROM CORNING'S ACQUISITION OF DAMON CORP IN AUGUST THE COMPANY SAID CORNING BOUGHT THE MEDICAL LABTESTING CONCERN IN AN EFFORT TO BECOME A LOWCOST MEDICALSERVICE PROVIDER CORNING HAS ABOUT 400 MILLION OF LONGTERM DEBT REMAINING FROM THE PURCHASE DAMON ALSO IS SADDLED WITH SUBPOENAS RELATING TO ITS BILLING PRACTICES ALTHOUGH THE LEGAL ORDERS RELATE TO PRACTICES BEFORE THE PURCHASE CORNING IS LIABLE FOR ANY SETTLEMENTS OR FINES DAMON MIGHT PAY THE COMPANY HAS SAID IT WILL TAKE A CHARGE IF AND WHEN ANY FINES ARE LEVIED CORNING SAID CALIFORNIA WASN'T A CORE GEOGRAPHIC AREA FOR METPATH AFTER SELLING THE TWO DAMON LABS IN LOS ANGELES AND SAN FRANCISCO CORNING WILL CONTINUE TO STRIP COSTS FROM THE ACQUISITION BY CONSOLIDATING THE OTHER 11 LABS ONE OF WHICH IS IN MEXICO CORNING A DIVERSIFIED CONCERN WITH INTERESTS IN SPECIALTY MATERIALS COMMUNICATIONS LABORATORY SERVICES AND CONSUMER PRODUCTS TOOK AN AFTERTAX CHARGE OF ABOUT 35 MILLION IN THE THIRD QUARTER OF 1993 FOR CONSOLIDATION COSTS 9403010176 940301 BUSINESS BRIEFS LYDALL INC SAID A UNIT ACQUIRED THE CLECON MOLDING DIVISION OF CLOSELY HELD SPI INC IN COLUMBUS OHIO TERMS WEREN'T DISCLOSED NATIONAL SANITARY SUPPLY CO'S CENTURY PAPERS INC SUBSIDIARY ACQUIRED MOST OF THE ASSETS OF EAST TEXAS CHEMICAL CO TERMS WEREN'T DISCLOSED AEL INDUSTRIES INC MERGED A WHOLLY OWNED SUBSIDIARY AEL DEFENSE CORP INTO THE PARENT COMPANY TO SIMPLIFY ITS ORGANIZATIONAL STRUCTURE CIT GROUP HOLDINGS INC COMPLETED THE ACQUISITION OF BARCLAYS PLC'S FACTORING AND COMMERCIALFINANCE UNIT BARCLAYS COMMERCIAL CORP TERMS OF THE PACT WEREN'T DISCLOSED BANK OF NEW YORK COMPLETED THE ACQUISITION OF THE MAJOR PART OF THE BONDADMINISTRATION BUSINESS OF A BARNETT BANKS INC UNIT TERMS WEREN'T DISCLOSED 9403010175 940301 TECHNOLOGY COLUMBIA/HCA'S 4THQUARTER PROFIT EXCEEDS FORECASTS STOCK SURGES 52 BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL FUELED BY ITS SWIFT OVERHAUL OF DOZENS OF RECENTLY ACQUIRED HOSPITALS COLUMBIA/HCA HEALTHCARE CORP REPORTED HIGHERTHANEXPECTED FOURTHQUARTER EARNINGS SENDING ITS STOCK SURGING 52 THE BURGEONING HOSPITAL CONCERN BASED IN LOUISVILLE KY EARNED 176 MILLION OR 52 CENTS A SHARE UP 18 FROM THE COMPANY'S PROFIT FROM CONTINUING OPERATIONS A YEAR EARLIER IN THE 1992 FOURTH QUARTER NET INCOME WAS 213 MILLION OR 63 CENTS A SHARE AFTER 64 MILLION IN GAINS FROM THE SALE OF SECURITIES AND DISCONTINUED OPERATIONS REVENUE ROSE 4 TO 257 BILLION FROM 247 BILLION INDUSTRY ANALYSTS HAD EXPECTED COLUMBIA TO REPORT PROFIT OF 49 CENTS A SHARE FOR THE LATEST PERIOD IN LATE NEW YORK STOCK EXCHANGE TRADING COLUMBIA'S STOCK JUMPED 2125 TO 43 THE QUARTER AND YEAR RESULTS FOR BOTH 1993 AND 1992 INCLUDE THE COMBINED OPERATIONS OF COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA WHICH COLUMBIA ACQUIRED FOR 57 BILLION IN STOCK FEB 10 TO FORM COLUMBIA/HCA THE RESULTS ALSO ARE THE FIRST TO REFLECT COLUMBIA'S MANAGEMENT OF 73 HOSPITALS FORMERLY OWNED BY GALEN HEALTH CARE INC WHICH IT ACQUIRED IN SEPTEMBER IN A 32 BILLION STOCK SWAP PRIOR TO THE COLUMBIA ACQUISITION ADMISSIONS AT THOSE HOSPITALS HAD BEEN FALLING FOR TWO YEARS AMID SQUABBLING BETWEEN PHYSICIANS AND HUMANA INC WHICH SPUN OFF GALEN LAST YEAR THANKS LARGELY TO COLUMBIA'S EFFORTS TO REPAIR RELATIONS WITH PHYSICIANS AND PURSUE ADDITIONAL MANAGEDCARE BUSINESS OVERALL ADMISSIONS AT FORMER GALEN FACILITIES ROSE BY 13 IN THE FOURTH QUARTER FROM A YEAR EARLIER THEY SAW SIGNIFICANT IMPROVEMENT IN THE FORMER GALEN MARKETS THAT WERE THE MOST TROUBLESOME SAID SALOMON BROTHERS ANALYST MARGO VIGNOLA NOTING THAT HOSPITAL ADMISSIONS WERE UP 63 IN LOUISVILLE AND 115 IN SAN ANTONIO IN A VERY SHORT PERIOD OF TIME THEY HAVE STOPPED THE DECLINE ADDED KENNETH S ABRAMOWITZ AN INDUSTRY ANALYST WITH SANFORD C BERSTEIN IN LESS THAN A YEAR COLUMBIA HAS RISEN FROM AN UPSTART TEXAS OPERATOR OF FEWER THAN TWO DOZEN HOSPITALS INTO THE NATION'S LARGEST FORPROFIT CHAIN WITH 193 HOSPITALS IN 26 STATES AND TWO FOREIGN COUNTRIES DRIVEN BY AN AGGRESSIVE MANAGEMENT TEAM LED BY RICHARD SCOTT ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER COLUMBIA HAS SOUGHT TO ACHIEVE MASSIVE ECONOMIES OF SCALE AND OFFER ONESTOP SHOPPING FOR HEALTHCARE SERVICES AT A TIME WHEN CORPORATIONS AND INSURERS ARE DEMANDING LESSEXPENSIVE COVERAGE IN ADDITION TO ITS GALEN AND HCA ACQUISITIONS COLUMBIA HAS PURCHASED DOZENS OF INDIVIDUAL FACILITIES SIGNED AN AFFILIATION AGREEMENT WITH DALLASBASED MEDICAL CARE AMERICA INC THE NATION'S LARGEST OPERATOR OF OUTPATIENT SURGERY CENTERS AND OPENED AFFILIATION TALKS WITH BEVERLY ENTERPRISES INC FORT SMITH ARK THE COUNTRY'S LARGEST NURSINGHOME CHAIN THIS COULD BE A GROWTH COMPANY FOR MANY MANY YEARS TO COME SAID JOHN HINDELONG AN ANALYST WITH DONALDSON LUFKIN & JENRETTE NOTING THAT COLUMBIA HAS PURCHASED MAJOR HOSPITALS IN THE CHICAGO KANSAS CITY MO AND ORLANDO FLA MARKETS SINCE THE FIRST OF THE YEAR WE'RE ALWAYS LOOKING ACKNOWLEDGED DAVID VANDEWATER COLUMBIA'S CHIEF OPERATING OFFICER WE WANT TO ROUND OUT THE MARKETS WHERE WE HAVE EXISTING FACILITIES AND MAKE SURE WE HAVE A NETWORK THAT IS COMPREHENSIVE FOR THE YEAR COLUMBIA/HCA REPORTED NET INCOME OF 507 MILLION OR 150 A SHARE UP FROM 165 MILLION OR 50 CENTS A SHARE IN 1992 THE 1993 RESULTS INCLUDED 166 MILLION IN NET CHARGES RELATED TO MERGER COSTS EARLY EXTINGUISHMENT OF DEBT AND SALE OF DISCONTINUED OPERATIONS THE 1992 FIGURES INCLUDE 483 MILLION IN NET CHARGES RELATED TO TRANSACTION COSTS FACILITY SALES AND INVESTMENT SALES AND A 51 MILLION GAIN FROM AN ACCOUNTING CHANGE REVENUE FOR THE YEAR INCREASED 32 TO 1025 BILLION FROM 993 BILLION 9403010174 940301 ECONOMY FORECASTER SURVEY FINDS BETTER ECONOMIC OUTLOOK WASHINGTON THE ECONOMIC OUTLOOK FOR THIS YEAR IS SUBSTANTIALLY STRONGER THAN IT WAS THREE MONTHS AGO ACCORDING TO THE 30 FORECASTERS SURVEYED EACH QUARTER BY THE FEDERAL RESERVE BANK OF PHILADELPHIA THE FORECASTERS EXPECT THE ECONOMY TO EXPAND AN INFLATIONADJUSTED 35 IN 1994 UP FROM THE 28 FORECAST THREE MONTHS EARLIER AT THAT PACE THE ECONOMISTS SAY THE UNEMPLOYMENT RATE WILL DECLINE GRADUALLY TO ABOUT 63 BY THIS TIME NEXT YEAR THE JOBLESS RATE IN JANUARY WAS 67 EVEN THOUGH THE CALIFORNIA EARTHQUAKE AND SEVERE WEATHER IN THE EAST AND MIDWEST WILL SHAVE THE GROWTH RATE IN THE FIRST QUARTER THE FORECASTERS STILL EXPECT THE ECONOMY TO GROW AT A 32 ANNUAL RATE IN THE PERIOD AND AT A 33 RATE IN THE SECOND QUARTER SUBSTANTIALLY FASTER THAN PREVIOUSLY PREDICTED THE ECONOMISTS NOW EXPECT THE INFLATION RATE TO RISE STEADILY IN 1994 TO 33 IN THE FOURTH QUARTER FROM 29 IN THE FIRST INFLATION IS EXPECTED TO AVERAGE 31 THIS YEAR AND 32 NEXT YEAR THE ECONOMISTS NOW PREDICT INTEREST RATES TO BE ABOUT TWOTENTHS OF A PERCENTAGE POINT HIGHER THAN THEY PREDICTED IN THE LAST SURVEY THEY NOW EXPECT THE YIELD ON THREEMONTH TREASURY BILLS TO AVERAGE 35 IN 1994 AND 38 IN 1995 IN THE SURVEY WHICH WAS CONDUCTED LAST MONTH BEFORE THE BOND MARKET PUSHED UP LONGTERM INTEREST RATES THE ECONOMISTS SAID THEY EXPECT THE YIELD ON 10YEAR TREASURY NOTES TO AVERAGE 59 IN 1994 AND 6 IN 1995 9403010173 940301 INTERNATIONAL SOUTH KOREAN TRADE DEFICIT SEOUL SOUTH KOREA SOUTH KOREA POSTED A TRADE DEFICIT OF 143 BILLION IN JANUARY ON A CUSTOMSCLEARANCE BASIS THE NATION'S CUSTOMS ADMINISTRATION SAID EXPORTS IN JANUARY STOOD AT 609 BILLION AGAINST IMPORTS OF 752 BILLION THE ADMINISTRATION SAID 9403010172 940301 ACTION IS DELAYED ON MOTION TO BAR BLOCKBUSTER DEAL BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A DELAWARE STATE COURT JUDGE DELAYED ACTION ON A REQUEST BY BLOCKBUSTER ENTERTAINMENT INC SHAREHOLDERS TO BAR THE VIDEO RENTAL GIANT FROM BUYING 125 BILLION OF VIACOM INC SHARES VICE CHANCELLOR CAROLYN BERGER POSTPONED UNTIL TODAY ANY ACTION ON A MOTION FOR A TEMPORARY RESTRAINING ORDER TO BLOCK THE CASH INFUSION BY BLOCKBUSTER INTO VIACOM VIACOM NEGOTIATED A DEAL ORIGINALLY VALUED AT 84 BILLION TO ACQUIRE BLOCKBUSTER FOR STOCK AS A MEANS OF FINANCING A HIGHER OFFER FOR PARAMOUNT COMMUNICATIONS INC WHICH VIACOM HAS SINCE WON THE RIGHT TO ACQUIRE AFTER A BRUTAL BIDDING WAR WITH QVC INC AS AN INTERIM STEP IN VIACOM'S AGREEMENT TO ACQUIRE THE VIDEO RENTAL COMPANY BLOCKBUSTER AGREED TO ACQUIRE 125 BILLION OF VIACOM CLASS B SHARES VIACOM IS SET TO USE THAT CASH BEGINNING MARCH 11 TO HELP PAY FOR PARAMOUNT SHARES THAT IT RECEIVES IN A TENDER OFFER THAT ENDS TODAY AT MIDNIGHT BLOCKBUSTER SHAREHOLDERS HOWEVER HAVE FILED LAWSUITS TO SCUTTLE THE ENTIRE BLOCKBUSTERVIACOM DEAL ARGUING THAT IT IS UNFAIR TO HOLDERS SINCE THE DEAL WAS ANNOUNCED VIACOM'S SHARES HAVE PLUNGED RAISING FURTHER QUESTIONS ABOUT WHETHER THE ACQUISITION OF BLOCKBUSTER WILL BE COMPLETED SAID ONE LAWYER FOR SHAREHOLDERS YESTERDAY VIACOM HAS TO PAY FOR THE PARAMOUNT SHARES WE DON'T WANT THAT 125 BILLION TO GO OUT OF BLOCKBUSTER'S COFFERS IN OTHER ACTION VIACOM SAID THAT ITS EARNINGS FOR THE FOURTH QUARTER MORE THAN DOUBLED TO 263 MILLION OR 11 CENTS A SHARE FROM 117 MILLION OR 10 CENTS A SHARE A YEAR EARLIER ON FEWER SHARES OUTSTANDING REVENUE ROSE 37 TO 5304 MILLION FROM 5116 MILLION FOR ALL OF 1993 VIACOM'S PROFIT SOARED TO 171 MILLION OR 131 A SHARE FROM 49 MILLION OR 41 CENTS A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDED A ONETIME LOSS OF 89 MILLION AND A GAIN OF 103 MILLION REFLECTING AN ACCOUNTING CHANGE WHILE YEAREARLIER PROFIT INCLUDED A ONETIME LOSS OF 171 MILLION REVENUE CLIMBED 75 TO 2 BILLION FROM 186 BILLION IN TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY VIACOM CLASS B SHARES ROSE 1375 TO CLOSE AT 28375 A SHARE THE RISE ANALYSTS SAID WAS FUELED IN PART BY A BUYRECOMMENDATION BY FURMAN SELZ INC ANALYSTS SAID 9403010171 940301 WHO'S NEWS DANA CORP DANA CORP TOLEDO OHIO ERIC CLARK 59 YEARS OLD WAS ELECTED A MEMBER OF THE BOARD OF THIS ENGINEERING MANUFACTURING AND MARKETING COMPANY MR CLARK IS CHAIRMAN AND MANAGING DIRECTOR OF THE UNITED KINGDOM'S BICC CABLES LTD A UNIT OF BICC GROUP HE HAS SERVED ON DANA'S EUROPEAN ADVISORY BOARD SINCE 1991 AND IS THE FIRST EUROPEAN TO SERVE ON DANA'S US BOARD 9403010170 940301 WHO'S NEWS HADCO CORP HADCO CORP SALEM NH RODNEY P DEREGO WILL RESIGN AS CHIEF FINANCIAL OFFICER VICE PRESIDENT AND TREASURER OF THIS MAKER OF PRINTED CIRCUIT BOARDS FOR THE COMPUTER TELECOMMUNICATIONS AND AUTOMOTIVE INDUSTRIES EFFECTIVE MARCH 25 MR DEREGO HAS ACCEPTED A POSITION AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF A HADCO CUSTOMER THE COMPANY SAID TIMOTHY P LOSIK HADCO'S CONTROLLER WILL SUCCEED MR DEREGO 9403010169 940301 WHO'S NEWS BELLSOUTH CORP BELLSOUTH CORP ATLANTA THIS TELECOMMUNICATIONS COMPANY ELECTED THREE DIRECTORS INCREASING BOARD MEMBERSHIP TO 16 REUBEN V ANDERSON 51 A 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 9403010168 940301 STEEL OUTPUT INCREASED DURING LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 21 LAST WEEK TO 1910000 TONS FROM 1871000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 29 FROM THE 1857000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 927 OF ITS CAPABILITY LAST WEEK COMPARED WITH 909 THE PREVIOUS WEEK AND 878 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9403010167 940301 CANADA CAPITAL OUTLAYS TO RISE 42 IN 1994 OTTAWA CANADIAN CAPITAL SPENDING IS EXPECTED TO RISE 42 THIS YEAR FROM 1993 SAID STATISTICS CANADA A GOVERNMENT AGENCY SPENDING BY CANADIAN BUSINESSES AND GOVERNMENT AGENCIES ON CONSTRUCTION MACHINERY AND EQUIPMENT IS EXPECTED TO TOTAL 1263 BILLION CANADIAN DOLLARS US9348 BILLION IN 1994 THE PROJECTED INCREASE FOLLOWS THREE CONSECUTIVE ANNUAL DECLINES IN SPENDING OUTLAYS MUCH OF THE 1994 RISE IS EXPECTED TO COME FROM MANUFACTURING INDUSTRIES WHICH ARE EXPECTED TO BOOST SPENDING 104 FROM 1993 LEVELS 9403010166 940301 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY 25 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALEXANDRIA VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH 31 1994 ITS 6125 POLLUTION CONTROL REVENUE BONDS SERIES 1977 DUE JULY 1 2007 NATIONSBANK TRUST ATLANTA IS TRUSTEE DELAWARE COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON APRIL 1 1994 110000 PRINCIPLE AMOUNT OF ITS 75 COMMERCIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS SERIES A 1977 DUE APRIL 1 1997 MELLON BANK PHILADELPHIA IS TRUSTEE KAUKAUNA WISC WILL REDEEM ON APRIL 1 1994 500000 PRINCIPLE AMOUNT OF ITS 65 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES B DUE APRIL 1 1999 MELLON BANK PITTSBURGH IS TRUSTEE MONTGOMERY COUNTY MA WILL REDEEM ON MARCH 31 1994 ITS POLLUTION CONTROL REVENUE BONDS 1979 SERIES NATIONSBANK TRUST ATLANTA IS TRUSTEE NORTHERN ILLINOIS UNIVERSITY BOARD OF REGENTS WILL REDEEM ON APRIL 1 1994 1055000 PRINCIPLE AMOUNT OF ITS 7125 AUXILIARY FACILITIES SYSTEM REVENUE BONDS SERIES A DUE APRIL 1 2005 CONTINENTAL BANK CHICAGO IS PAYING AGENT SOUTHEASTERN OKLAHOMA INDUSTRIES AUTHORITY WILL REDEEM ON APRIL 1 1994 200000 PRINCIPLE AMOUNT OF ITS 5625 POLLUTION CONTROL FACILITIES REVENUE BONDS SERIES 1973 DUE APRIL 1 2003 CONTINENTAL BANK CHICAGO IS TRUSTEE CINCINNATI GAS & ELECTRIC CO WILL REDEEM ON APRIL 1 1994 ITS CUMULATIVE PREFERRED STOCK 928 SERIES 9403010164 940301 PACIFIC INVESTMENT THOMSON ADVISORY DISCUSS MERGER BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL PACIFIC INVESTMENT MANAGEMENT CO A LEADING BOND MANAGER KNOWN AS PIMCO IS DISCUSSING A MERGER WITH THE SMALLER THOMSON ADVISORY GROUP LP ACCORDING TO A STATEMENT BY THE COMPANIES POSSIBLE TERMS WEREN'T DISCLOSED THOMSON'S STOCK JUMPED 2875 OR 89 TO CLOSE AT 3525 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SUCH A MERGER WOULD ROUND OUT EACH COMPANY'S PRODUCT LINE AND OPEN UP NEW SALES AVENUES FUND EXPERTS SAID TOGETHER THE COMBINED BUSINESSES WOULD MANAGE ABOUT 70 BILLION THOMSON ADVISORY AND PACIFIC MUTUAL LIFE INSURANCE CO PIMCO'S PARENT CONFIRMED A REPORT IN BARRON'S MAGAZINE SAYING THEY ARE ENGAGED IN TALKS THAT COULD LEAD TO A COMBINATION OF THOMSON'S BUSINESS WITH THE INVESTMENTADVISORY BUSINESSES CURRENTLY CARRIED ON BY PACIFIC MUTUAL THROUGH SUBSIDIARIES NEITHER SIDE WOULD SAY WHICH BUSINESS IS UP FOR SALE BUT ONE SAID A MERGER IS MORE LIKELY THAN A JOINT VENTURE THE WORD MERGER' IS ACCURATE DAVID SANSON A PIMCO SPOKESMAN SAID DECLINING FURTHER COMMENT EXCEPT TO SAY THAT DISCUSSIONS ARE IN THE EARLY STAGES THERE IS NO GUARANTEE A TRANSACTION WILL OCCUR BOTH SIDES SAID IN A JOINT STATEMENT THOMSON ADVISORY BASED IN STAMFORD CONN HAS 106 BILLION UNDER MANAGEMENT AND IS KNOWN AS A STRONG STOCKFUND MANAGER PIMCO BASED IN NEWPORT BEACH CALIF OVERSEES 54 BILLION AND IS KNOWN AS A LEADING INSTITUTIONAL MONEY MANAGER OTHER PACIFIC MUTUAL SUBSIDIARIES INCLUDED IN THE TALKS ARE CADENCE CAPITAL PARAMETRIC AND NFJ INVESTMENT GROUP AND BLAIRLOGIE CAPITAL WITH A COMBINED 42 BILLION IN ASSETS UNDER MANAGEMENT THEY'RE BOTH VERY GOOD GROUPS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SAID OF PIMCO AND THOMSON ADVISORY THEIR STRENGTHS WOULD NOT OVERLAP IT WOULD BE A NICE BLEND MORE AKIN TO FRANKLIN RESOURCES INC AND TEMPLETON FRANKLIN A FUND GROUP KNOWN FOR ITS BONDFUND MANAGEMENT BOUGHT THE TEMPLETON INTERNATIONAL FUNDS IN 1992 9403010163 940301 WHO'S NEWS ALUMINUM CO OF AMERICA ALUMINUM CO OF AMERICA PITTSBURGH FAUSTO MOREIRA 45 YEARS OLD WAS NAMED PRESIDENTDIRECTOR OF ALCOA ALUMINIO SA IN SAO PAULO BRAZIL MR MOREIRA WHO FORMERLY WAS EXECUTIVE DIRECTORFINANCE WILL BE RESPONSIBLE FOR ALL OF ALCOA'S LATIN AMERICAN INTERESTS HE SUCCEEDS ALAIN BELDA 50 WHO HAS BEEN NAMED AN ALCOA EXECUTIVE VICE PRESIDENT 9403010162 940301 POLITICS & POLICY CLINTON ADMINISTRATION'S EFFORTS TO AID BUSINESS HELP DEMOCRATS WOO TRADITIONAL GOP FRIENDS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S EASY TO SEE WHY JOHN F MCDONNELL CHIEF EXECUTIVE OFFICER OF MCDONNELL DOUGLAS CORP IS IN THE CLINTON ADMINISTRATION'S HAPPY CEO FILE THE FILE ACTUALLY TWO BULGING BLACK BINDERS MAINTAINED IN THE COMMERCE DEPARTMENT RECOUNTS HOW COMMERCE SECRETARY RONALD BROWN TOUTED MCDONNELL'S F/A18 FIGHTERSTRIKE PLANES TO THE MALAYSIAN DEFENSE MINISTER AT LAST YEAR'S PARIS AIR SHOW MALAYSIA EVENTUALLY BOUGHT EIGHT PLANES FOR 643 MILLION AND MR MCDONNELL WROTE TO MR BROWN APPLAUDING HIS SUPPORT OF US INDUSTRY ANOTHER PLEASED EXECUTIVE IS JOHN BRYSON CHAIRMAN OF SCECORP AFTER THE GIANT UTILITY PULLED OUT OF AN ENERGY PROJECT IN MEXICO LAST FALL BRYSON AIDES ASKED THE COMMERCE DEPARTMENT FOR HELP IN GETTING A 150 MILLION INVESTMENT RETURNED IN DECEMBER HE WROTE THAT NOT ONLY WAS THE MONEY RETURNED WITH INTEREST BUT THE THE COMPANY WAS REIMBURSED FOR EXPENSES AS WELL I APPRECIATE YOUR SUPPORT IN THESE EFFORTS MR BRYSON WROTE THE COMMERCE SECRETARY MR BROWN IS ONLY ONE OF THE OFFICIALS BUSINESS TURNS TO FOR HELP IN THE CLINTON ADMINISTRATION THROUGHOUT THE GOVERNMENT A NETWORK OF FIXERS AND FACILITATORS MANY OF THEM LIKE THE COMMERCE SECRETARY FORMERLY DEEPLY INVOLVED IN FUNDRAISING FOR THE CLINTON CAMPAIGN OR THE DEMOCRATIC PARTY ARE LABORING TO CEMENT A RELATIONSHIP WITH WHAT IS NORMALLY ONE OF THE MOST REPUBLICAN CONSTITUENCIES IN THE NATION BIG BUSINESS OTHER DEMOCRATIC PRESIDENTS HAVE TRIED TO COURT BUSINESS BUT USUALLY WITH ONLY TEPID RESULTS MY FATHER ALWAYS TOLD ME THAT ALL BUSINESSMEN WERE SONS OF BITCHES JOHN F KENNEDY ONCE ROARED IN THE MIDST OF A STEELPRICE CONFRONTATION BUT I NEVER BELIEVED IT TILL NOW JIMMY CARTER PUBLICLY PILLORIED OIL COMPANIES IN THE MIDST OF THE 1979 ENERGY CRISIS BUT EVEN THE PUBLIC SPAT BETWEEN THE CLINTON WHITE HOUSE AND THE BUSINESS COMMUNITY OVER THE PRESIDENT'S HEALTHCARE PROPOSAL HAS SO FAR AT LEAST FAILED TO COOL THE ADMINISTRATION'S DESIRE TO HELP BUSINESS DO BUSINESS COMPANIES AND TRADE GROUPS HAVE NO SINGLE POINT OF ENTRY IN THE CLINTON ADMINISTRATION TREASURY SECRETARY LLOYD BENTSEN A FORMER TEXAS SENATOR HEARS FROM THE OIL PATCH WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY A FORMER NATURALGAS EXECUTIVE OFTEN DEALS WITH FORTUNE 500 CHIEFS DEPUTY TREASURY SECRETARY ROGER ALTMAN AND NATIONAL ECONOMIC COUNCIL CHAIRMAN ROBERT RUBIN ARE ENVOYS TO WALL STREET BUT WHAT'S STRIKING IS THE NUMBER OF FAVORDOERS WITH BACKGROUNDS IN POLITICAL FINANCE COMMERCE SECRETARY BROWN FOR EXAMPLE IS A FORMER DEMOCRATIC NATIONAL CHAIRMAN WHITE HOUSE PUBLIC LIAISON DIRECTOR ALEXIS HERMAN WAS DEPUTY CHAIRMAN MELISSA MOSS WHO RUNS THE COMMERCE DEPARTMENT'S BUSINESSLIAISON OFFICE WAS THE PARTY'S CHIEF FUNDRAISER AMY ZISOOK A TOP AIDE TO MS HERMAN WAS A TOP FUNDRAISER FOR THE PARTY MAJOR FUNDRAISERS FOR THE CLINTON CAMPAIGN ARE NOW IN POSITIONS WHERE THEY CAN REPAY THE FAVORS CHARGES ELLEN MILLER EXECUTIVE DIRECTOR OF THE CENTER FOR RESPONSIVE POLITICS A NONPARTISAN GROUP IN WASHINGTON DC IT IS BUSINESS AS USUAL AND CLINTON PROMISED US CHANGE MOREOVER IT'S CLEAR THAT COMPANIES HAVE CHANGED THEIR POLITICAL GIVING PATTERNS TO REFLECT THE SHIFTING TIDE OF POLITICAL POWER DATA FROM THE CENTER FOR RESPONSIVE POLITICS SHOW THAT IN BOTH THE FIRST SIX MONTHS OF 1991 AND THE LIKE PERIOD IN 1993 INDUSTRY AND INTEREST GROUPS DONATED JUST OVER 14 MILLION IN UNRESTRICTED SOFT MONEY TO THE TWO MAJOR POLITICAL PARTIES BUT IN 1991 WHEN THEY WERE OUT OF POWER THE DEMOCRATS GOT ONLY 34 MILLION OF IT IN 1993 WHEN THEY WERE IN POWER THEY GOT 8 MILLION GENERAL ELECTRIC CO EXEMPLIFIES THE SHIFT IT SPLIT 31325 ALMOST EVENLY BETWEEN THE TWO PARTIES IN THE FIRST SIX MONTHS OF 1991 BUT DURING THE FIRST SIX MONTHS OF LAST YEAR IT GAVE NOTHING TO THE REPUBLICANS AND 50250 TO THE DEMOCRATS THE WHITE HOUSE DENIES ANY LINK BETWEEN CAMPAIGN CONTRIBUTIONS AND THE DISPENSING OF FAVORS IT SAYS WHAT IT DOES FOR BUSINESS IS DESIGNED TO BOOST ECONOMIC GROWTH AND ENHANCE US COMPETITIVENESS THESE AREN'T FAVORS MR BROWN SAYS OUR TOTAL FOCUS HAS BEEN TO WORK IN PARTNERSHIP WITH THE PRIVATE SECTOR TO CREATE SUSTAINABLE ECONOMIC GROWTH AND HIGHWAGE HIGHQUALITY JOBS FOR AMERICAN WORKERS BUT WHATEVER THE MOTIVATION IT IS CLEAR THAT AN ELABORATE SYSTEM HAS BEEN SET UP THROUGHOUT THE ADMINISTRATION TO KEEP BUSINESSES HAPPY IN THE BUSH YEARS COMPANIES UNHAPPY WITH PENDING REGULATIONS USUALLY HEADED FIRST FOR VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL IN THIS ADMINISTRATION THE FIRST STOP IS OFTEN SALLY KATZEN ADMINISTRATOR OF THE OFFICE OF INFORMATION AND REGULATORY AFFAIRS A BRANCH OF THE OFFICE OF MANAGEMENT AND BUDGET A REVIEW OF HER MEETING RECORDS SINCE LAST SEPTEMBER SHOWS SHE HELD 23 MEETINGS WITH INDIVIDUALS FROM COMPANIES OR TRADE GROUPS COMPARED WITH SIX MEETINGS WITH PUBLICINTEREST GROUPS IN ONE INSTANCE THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED A RULE EXPANDING THE POLLUTION STUDIES REQUIRED FOR PRIVATE CONSTRUCTION PROJECTS DEVELOPERS SUCH AS CALIFORNIA'S IRVINE CO BALKED AS DID POWERFUL TRADE GROUPS REPRESENTING HOME BUILDERS AND DEVELOPERS THE OPPONENTS MET WITH MS KATZEN AND EPA OFFICIALS IN OCTOBER AND SHE HELPED FASHION A COMPROMISE LIMITING OCCASIONS IN WHICH NEW STUDIES WERE REQUIRED THE END RESULT WAS BETTER THAN EPA'S PROPOSAL SAYS MONICA FLORIAN A SENIOR VICE PRESIDENT AT IRVINE THERE WAS A WILLINGNESS AT THAT LEVEL TO RECOGNIZE THAT THESE GROUPS AND ORGANIZATIONS HAD SOME POINTS WORTHY OF THINKING ABOUT MS KATZEN ALSO HELPED THE AUTO INDUSTRY WEAKEN THE EPA'S PLANS TO REQUIRE THAT TRUCKS INSTALL EQUIPMENT TO CAPTURE FUMES RELEASED DURING REFUELING IN THE COMPROMISE ONLY LIGHT TRUCKS AND MINIVANS WILL BE SUBJECT TO THE SAME REQUIREMENTS AS CARS AND THE NEW LIGHTTRUCK STANDARDS WON'T TAKE EFFECT UNTIL THE NEXT CENTURY ANOTHER CONTACT POINT FOR BUSINESSES IS THE WHITE HOUSE'S PUBLICLIAISON OFFICE WHICH IN PREVIOUS ADMINISTRATIONS CATERED LARGELY TO CONSTITUENT GROUPS OFFICIALS REPRESENTING BIOTECHNOLOGY FIRMS TURNED TO STEVE HILTON THE OFFICE'S DEPUTY DIRECTOR TO ARRANGE MEETINGS AIMED AT GETTING RELIEF FROM PRICE CONTROLS IN THE CLINTON HEALTH PLAN EXECUTIVES FROM GAP INC CLOTHING STORES ALSO ENLISTED THE PUBLICLIAISON OFFICE TO ARRANGE A MEETING TO PERSUADE THE ARCHITECTS OF THE CLINTON HEALTH PLAN TO CHANGE THE WAY PARTTIME WORKERS WERE TO BE TREATED THE ADMINISTRATION HAS PROMISED TO ADVOCATE THE CHANGE AS THE LEGISLATION MOVES THROUGH CONGRESS CURRENTLY MR BROWN'S COMMERCE DEPARTMENT APPEARS TO BE THE MAJOR PORT OF CALL MORE THAN 300 BUSINESS PEOPLE ARE VYING FOR ABOUT 25 SEATS ON THE AIRPLANE THE COMMERCE SECRETARY WILL BE TAKING TO RUSSIA NEXT MONTH AMONG MR BROWN'S SUITORS FOR THE TRIP IS TOBACCO GIANT PHILIP MORRIS COS WHICH LAST FALL ASKED THE COMMERCE DEPARTMENT TO HELP COLLECT 78 MILLION IT IS OWED BY THE RUSSIAN GOVERNMENT THE TRIP'S POPULARITY GREW AFTER MR BROWN TRAVELED TO SOUTH AFRICA AND SPARKED NEGOTIATIONS BETWEEN US COMPANIES AND SOUTH AFRICANS ON SEVEN PROJECTS ALL THIS ACTIVITY WORRIES REPUBLICANS WHO ARE LEARNING WHAT IT MEANS NOT TO HAVE BUSINESS AS A SOLID BACKER WILLIAM KRISTOL WHO WAS VICE PRESIDENT QUAYLE'S CHIEF OF STAFF SAYS IT IS HARDER FOR REPUBLICANS ON THE HILL TO BE RESOLUTE IN FIGHTING CLINTON PROPOSALS SUCH AS HIS HEALTHCARE PLAN IF THE BUSINESS COMMUNITY IS SPLINTERED 9403010161 940301 WHO'S NEWS GENERAL AUTOMATION INC GENERAL AUTOMATION INC ANAHEIM CALIF ROBERT BAGBY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION MR BAGBY 61 YEARS OLD HAD BEEN VICE PRESIDENT OF OPERATIONS OF THIS MAKER AND DESIGNER OF COMPUTER SYSTEMS HE WILL RETAIN THOSE DUTIES HE SUCCEEDS AS PRESIDENT LEONARD MACKENZIE 56 WHO WILL REMAIN CHIEF EXECUTIVE OFFICER AND VICE CHAIRMAN ALSO DON RUTHERFORD THE COMPANY'S CHIEF FINANCIAL OFFICER IS LEAVING TO PURSUE OTHER INTERESTS GENERAL AUTOMATION SAID NO SUCCESSOR WAS NAMED FOR MR RUTHERFORD 54 WHO COULDN'T BE REACHED FOR COMMENT A SPOKESWOMAN FOR GENERAL AUTOMATION SAID THE COMPANY EXPECTED TO NAME A SUCCESSOR TO MR RUTHERFORD WITHIN SIX WEEKS 9403010160 940301 WHO'S NEWS UNION BANK OF SWITZERLAND UNION BANK OF SWITZERLAND ZURICH ROBERT MILLS 44 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF FINANCIAL OFFICER RESPONSIBLE FOR FINANCE AND CONTROL AT THIS BANKING CONCERN THE POSITION IS EFFECTIVE APRIL 1 MR MILLS WAS FORMERLY A PARTNER AT KPMG PEAT MARWICK WHERE HE MOST RECENTLY SERVED AS THE NATIONAL PRACTICE HEAD FOR THE INVESTMENT BANKING AND RETAIL BROKERAGE PRACTICE 9403010159 940301 WEATHER HURT GREYHOUND DALLAS GREYHOUND LINES INC POSTED A 63 DECLINE IN ITS JANUARY BUS TRAFFIC BLAMING BAD WEATHER AND THE EARTHQUAKE IN CALIFORNIA THE COMPANY SAID REVENUE PASSENGER MILES DECLINED TO 417587 FROM 445635 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE THE BAD WEATHER CITED BY GREYHOUND INCLUDED ICE STORMS IN THE NORTHEAST AND MIDWEST AND HEAVY RAINS IN CALIFORNIA THE COMPANY SAID CONTINUED POOR WEATHER HURT ITS FEBRUARY TRAFFIC 9403010157 940301 GE RECEIVES 39 MILLION ORDER SCHENECTADY NY GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS SAID IT RECEIVED A 39 MILLION ORDER FOR TWO GAS TURBINE GENERATORS FROM RAYTHEON CO'S RAYTHEON CONSTRUCTORS INC GE SAID THE 835MEGAWATT UNITS WILL BE USED BY HOUSTON LIGHTING & POWER CO AT A NEW COGENERATION PLANT SITUATED AT A DUPONT CO CHEMICAL PLANT IN LAPORTE TEXAS DUPONT WILL BUY STEAM PRODUCED BY THE PLANT WHILE HOUSTON LIGHTING WILL USE THE ELECTRICITY 9403010156 940301 AMERICA WEST CUTS LONGHAUL FARES FORCING RELUCTANT RIVALS TO MATCH MOVE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL LED BY AMERICA WEST AIRLINES CARRIERS SLASHED COASTTOCOAST AND OTHER LONGHAUL FARES BY UP TO 52 ON ADVANCEPURCHASE TICKETS THE SALE REPRESENTS A BOON FOR LEISURE TRAVELERS BUT A SETBACK FOR THE INDUSTRY'S EFFORTS TO KEEP FARES AT RELATIVELY HIGH LEVELS PARTICULARLY ON LONGHAUL ROUTES MANY CARRIERS INCLUDING DELTA AIR LINES AND CONTINENTAL AIRLINES HAVE BEEN CUTTING FARES ON ROUTES UNDER 500 MILES TO COMPETE AGAINST LOWCOST RIVALS TO COMPENSATE THE INDUSTRY HAS BEEN PUSHING UP PRICES ON FLIGHTS OVER 1500 MILES BUSINESS FLIERS SAW AN 11 INCREASE ON THOSE ROUTES LAST YEAR AND THOSE FARE INCREASES WERE EXPECTED TO CONTINUE THIS YEAR BUT AMERICA WEST THROTTLED THOSE PLANS FOR NOW BY ANNOUNCING A SALE THAT APPLIES FOR TRAVEL THROUGH JUNE 15 THE NONREFUNDABLE TICKETS REQUIRE A SATURDAYNIGHT STAY AND MUST BE PURCHASED BY MARCH 10 TO TAKE TWO EXAMPLES A ROUNDTRIP NEW YORKSAN FRANCISCO TICKET COSTS 318 A 52 DISCOUNT AND THE ROUNDTRIP BOSTONLOS ANGELES PRICE WAS CUT 50 TO 328 OTHER MAJOR CARRIERS INCLUDING AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES AND DELTA SAID THEY WOULD MATCH THE SALE EVEN ON NONSTOP FLIGHTS THESE DISCOUNTS USUALLY REDUCE AIRLINE REVENUES AND SOME INDUSTRY OBSERVERS WERE SURPRISED THAT AMERICA WEST WHICH HAS NO NONSTOP FLIGHTS BETWEEN THE EAST COAST AND CALIFORNIA COULD FORCE INDUSTRY GIANTS THAT DO FLY NONSTOP TO CUT THEIR PRICES IT'S STUPID FROM THE AIRLINES' POINT OF VIEW THEY CONTINUE TO LIE TO PEOPLE ABOUT WHAT IT COSTS TO TRANSPORT PEOPLE SAID JOE BRANCATELLI TRAVEL ADVISER OF TRAVEL HOLIDAY MAGAZINE THE CARRIERS WERE CLEARLY NOT PLEASED BY THE SALE BUT SAY THEIR HAND WAS FORCED THIS IS NOT SOMETHING WE WOULD HAVE DONE BUT WE'LL MATCH IT TO BE COMPETITIVE AN AMERICAN SPOKESMAN SAID THE FARE INITIATIVE UNDERSCORES THE COST ADVANTAGE THAT AMERICA WEST HAS DRIVEN BETWEEN ITSELF AND MOST OF THE INDUSTRY THE PHOENIX CARRIER HAS SUBSTANTIALLY DRIVEN ITS COSTS DOWN IN THE 2 1/2 YEARS IT HAS OPERATED IN BANKRUPTCY PROCEEDINGS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IT ALSO ANNOUNCED YESTERDAY A FARE SALE TO PHILADELPHIA THAT WILL COMMENCE WHEN AMERICA WEST BEGINS SERVICE THERE IN APRIL THE AIRLINE ALSO SAID IT WOULD CONTINUE A 30 DISCOUNT OFF LEISURE FARES THAT IT HAS BEEN RUNNING IN MANY MARKETS FOR OVER A YEAR AND THAT SOME RIVALS HAVE MATCHED ANALYSTS SAY AMERICA WEST WILL CONTINUE TO BE A SPUR IN THE INDUSTRY'S HIDE NO AIRLINE CAN AFFORD ANY SIGNIFICANT EROSION IN PASSENGER LEVELS SAYS CHRIS MILLER AIRLINE ANALYST FOR USTRAVEL A LARGE TRAVEL AGENCY THE INDUSTRY IS STILL HOSTAGE TO THE LESSDOMINANT PLAYERS IN THE MARKET 9403010155 940301 DONNELLY IS TO BUILD FACTORY HOLLAND MICH DONNELLY CORP SAID IT WILL BEGIN CONSTRUCTION OF A 10 MILLION PLANT NEXT MONTH IN NEWAYGO MICH THAT WILL MAKE EXTERIOR AUTOMOTIVE MIRROR SYSTEMS AND DOOR HANDLES FOR FORD MOTOR CO DONNELLY SAID THE FACTORY WHICH WILL BEGIN PRODUCTION IN OCTOBER 1995 INITIALLY WILL EMPLOY BETWEEN 75 AND 125 WORKERS BUT COULD EMPLOY 325 WORKERS AT FULL CAPACITY 9403010154 940301 INTERNATIONAL PUBLIC WORKERS IN GERMANY BEGIN WARNING STRIKES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THOUSANDS OF GERMAN PUBLICSECTOR WORKERS BEGAN A TWODAY WAVE OF WARNING STRIKES YESTERDAY AS INDUSTRY BRACED FOR A MAJOR METALWORKER'S STRIKE THAT COULD TRIP UP GERMANY'S FRAGILE ECONOMIC RECOVERY THE OETV PUBLICSECTOR AND TRANSPORTWORKERS UNION DISRUPTED PUBLIC SERVICES ACROSS THE COUNTRY TO PRESS DEMANDS FOR A 4 PAY INCREASE FOR ITS 35 MILLION MEMBERS GOVERNMENT NEGOTIATORS ARE PUSHING FOR A WAGE FREEZE THIS YEAR TO REDRESS DEEP PUBLICSECTOR DEFICITS NEGOTIATIONS ARE CURRENTLY STALLED COMMUTERS IN THE HEAVILY POPULATED STATE OF NORTHRHINE WESTPHALIA GOT TO WORK LATE YESTERDAY MORNING AFTER PUBLICTRANSPORT WORKERS WALKED OUT FOR TWO HOURS IN MAJOR CITIES SUCH AS COLOGNE AND DUESSELDORF MASSTRANSIT SERVICES ALSO WERE HALTED IN HEIDELBERG IN THE STATE OF BADEN WUERTTEMBERG SOME OF HAMBURG'S HARBOR FACILITIES WERE TEMPORARILY OUT OF COMMISSION AND GARBAGE WENT UNCOLLECTED IN MUNICH BRIEF WARNING STRIKES STAGED BY THE RELATED POSTAL UNION SNARLED TELEPHONE SERVICES IN MAJOR CITIES FROM BERLIN TO FRANKFURT THE FIRST WAVE OF PUBLICSECTOR STRIKES WAS SET FOR ONLY THE FIRST TWO DAYS OF THIS WEEK THEY WERE ACCOMPANIED BY SIGNALS FROM OETV LEADERSHIP THAT IT WOULD ACCEPT LESS PAY FOR FEWER WORKING HOURS A WEEK IN EXCHANGE FOR JOB GUARANTEES ALTHOUGH THE DOOR TO AN OETV AGREEMENT REMAINED OPEN THE ACTIONS DRAMATIZED A SPREADING LABOR CONFLICT AT A TIME WHEN FOUR MILLION WORKERS ALREADY ARE OUT OF WORK IN A SEPARATE CONFLICT WITH THE AUTOMOTIVE ELECTRICAL AND ENGINEERING INDUSTRY THE BIG IG METALL METALWORKERS UNION WILL ANNOUNCE THE RESULTS OF A STRIKE VOTE BEING HELD THIS WEEK IN THE STATE OF LOWER SAXONY WHICH COULD RESULT IN A FULLSCALE WALKOUT ALSO YESTERDAY THE DAG OFFICEWORKERS UNION ANNOUNCED PLANS TO START WARNING STRIKES IN GERMANY'S BANKING SECTOR AFTER BANKS REFUSED UNION PAY DEMANDS IN THREE ROUNDS OF TALKS 9403010153 940301 FOUNDATION SEEKS FLORIDA MARKET RANCHO CORDOVA CALIF FOUNDATION HEALTH CORP A MANAGED HEALTHCARE COMPANY SAID IT FILED AN APPLICATION TO PROVIDE MANAGEDCARE SERVICES IN THE GREATER ORLANDO FLA METROPOLITAN AREA FOUNDATION RECENTLY OBTAINED APPROVAL TO EXTEND ITS SERVICES INTO LOUISIANA AND PENDING APPLICATIONS IN TEXAS AND FLORIDA ARE PART OF ITS STRATEGY TO EXTEND OPERATIONS IN THE SOUTH AND SOUTHWEST 9403010152 940301 INTERNATIONAL JAPAN TOUGHENS TALK IN DEALING WITH US TRADE TOKYO WARNS OF RETALIATION IF US SETS SANCTIONS THAT DEFY GATT RULES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN SHARPENED ITS TRADE RHETORIC AND SUGGESTED IT WOULD RETALIATE IF THE US IMPOSES SANCTIONS THAT ARE FOUND TO VIOLATE INTERNATIONAL TRADE RULES STATEMENTS MONDAY BY YOSHIRO SAKAMOTO A SENIOR TRADE OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ARE JAPAN'S LATEST SALVO IN A TRADE DISPUTE THAT HAS BEEN BREWING EVER SINCE USJAPAN TRADE TALKS COLLAPSED IN MIDFEBRUARY JUST DAYS AFTER THOSE TALKS FELL APART THE US ANNOUNCED IT WOULD CONSIDER TRADE SANCTIONS IN AN ATTEMPT TO SETTLE A LONGSTANDING DISAGREEMENT OVER JAPAN'S CELLULAR TELEPHONE MARKET TOKYO HAS SINCE WARNED THAT IF THE US GOES BACK ON ITS PLEDGE TO LOWER TARIFFS ON ELECTRONICS GEAR AND OTHER GOODS THE JAPANESE MIGHT RETALIATE BY NARROWLY TARGETING US EXPORTS OF GOODS SUCH AS COMPUTER PARTS JAPANESE OFFICIALS LONG HAVE SAID THEY WILL CONTEST POSSIBLE US SANCTIONS BY APPEALING TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE A WORLD TRADE BODY RARELY HOWEVER HAVE OFFICIALS MADE EXPLICIT TOKYO'S WILLINGNESS TO IMPOSE ITS OWN TARIFFS ON US PRODUCTS IF GATT RULES IN JAPAN'S FAVOR AND THE US FAILS TO WITHDRAW ITS SANCTIONS SHOULD THE US TAKE THAT SORT OF ACTION IN THEORY I THINK WE SHOULD RETALIATE MR SAKAMOTO SAID WHETHER OR NOT WE APPLY RETALIATORY MEASURES IN PRACTICE DEPENDS ON THE POLITICAL SITUATION AND WILL BE REGULATED ON A CASEBYCASE BASIS UNDER GATT RULES A FAVORABLE RULING WOULD ALLOW JAPAN TO IMPOSE TARIFFS OF UP TO 100 ON US IMPORTS IN JAPAN MR SAKAMOTO STRESSED THAT JAPAN WOULD PREFER TO SETTLE TRADE DISPUTES WITH THE US THROUGH NEGOTIATIONS STILL HE SAID JAPAN WILL STAND UP AGAINST US PRESSURE AND WARNED THE US AGAINST TRYING TO SETTLE ITS TRADE DISPUTES UNDER THE THREAT OF SANCTIONS SUCH MEASURES WILL NOT PROVIDE THE US WITH THE ADVANTAGE IT SEEKS HE SAID UNDER THE SHADOW OF US SANCTIONS HOWEVER JAPAN HAS BEGUN SCRAMBLING FOR A PACKAGE OF UNILATERAL MARKETOPENING MEASURES IT HOPES TO UNVEIL BY THE END OF MARCH MR SAKAMOTO SAID THE PACKAGE PROBABLY WILL INCLUDE MANY OF THE PROPOSALS JAPAN MADE IN RECENT NEGOTIATIONS WITH THE US INCLUDING THE USE OF COLLECTED DATA TO MEASURE TRENDS IN IMPORT PENETRATION JAPAN HOWEVER WILL CONTINUE TO REFUSE US DEMANDS FOR FUTURE TARGETS HE SAID US OFFICIALS PLAYED DOWN MR SAKAMOTO'S COMMENTS ON RETALIATION NOTING THAT DESPITE ITS OFTSTATED INTENTIONS JAPAN NEVER HAS TAKEN A TRADE CASE INVOLVING THE US BEFORE GATT JAPAN'S THREAT OF RETALIATION IS NO BIG DEAL SAID ONE US OFFICIAL THEY'VE GOT TO TAKE IT TO THE GATT FIRST THEN WIN THE CASE AND THEN THEY'LL HAVE TO DECIDE WHAT THEY'RE GOING TO DO ABOUT IT 9403010151 940301 INTERNATIONAL SOUTH KOREA PHONE SYSTEM GOES TO POHANG BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA POHANG IRON & STEEL CO WAS AWARDED A LEAD SHARE OF A CONSORTIUM HERE THAT WILL BUILD AND DEVELOP WHAT IS POTENTIALLY ONE OF THE WORLD'S MOST LUCRATIVE CELLULAR TELEPHONE SYSTEMS THE MOVE BY THE FEDERATION OF KOREAN INDUSTRIES SETTLES WEEKS OF FEUDING AND BACKROOM MANEUVERING OVER WHICH COMPANY WOULD RUN THE CONSORTIUM BUT IT STILL LEAVES UP IN THE AIR THE QUESTION OF HOW BIG A STAKE FOREIGN CONCERNS WILL GET IN THE VENTURE UNDER THE PLAN THE STEEL GIANT KNOWN AS POSCO WOULD CONTROL 15 OF THE GROUP WHILE KOLON GROUP A TEXTILE COMPANY AND POSCO'S RIVAL FOR THE LEAD ROLE WAS GIVEN A 14 SHARE THE REMAINING EQUITY RESERVED FOR KOREAN COMPANIES WAS DIVIDED AMONG KOREA ELECTRIC POWER CORP A PUBLIC UTILITY AND KOREA'S TOP FOUR CONGLOMERATES DAEWOO CORP AND THE SAMSUNG HYUNDAI AND LUCKY GOLDSTAR GROUPS A SHARE OF THE PROJECT IS ALSO EXPECTED TO BE AWARDED TO AT LEAST TWO FOREIGN BIDDERS UNDER A PLAN DESIGNED TO SPUR FOREIGN INVESTMENT BUT IT STILL ISN'T CLEAR WHICH OF THE BIDDERS PACTEL CORP GTE CORP SOUTHWESTERN BELL CORP NYNEX CORP AND QUALCOMM CORP WOULD BE ASKED TO JOIN THE DECISION REPRESENTS A VICTORY FOR POSCO WHICH WAS COUNTING ON THE CONTRACT TO SPEARHEAD ITS DIVERSIFICATION DRIVE INTO TELECOMMUNICATIONS BUT THE PROCESS THAT LED TO THE VERDICT A SNARL OF CONTENTIOUS BACKROOM QUARRELS AMONG PARTICIPANTS IS SEEN AS A SETBACK FOR PRESIDENT KIM YOUNG SAM'S CAMPAIGN TO REDUCE THE POWER OF KOREA'S CONGLOMERATES WHILE BOLSTERING THE COUNTRY'S IMAGE WITH FOREIGN INVESTORS IMMEDIATELY AFTER POSCO WAS DECLARED THE WINNER KOLON THREATENED TO PULL OUT OF THE CONSORTIUM AND TAKE ITS THREE FOREIGN PARTNERS SOUTHWESTERN BELL NYNEX CORP AND BELL ATLANTIC CORP WITH IT UNDER PRESSURE TO RESOLVE WHAT HAS BECOME A GROWING EMBARRASSMENT FOR KOREAN INDUSTRY THE FEDERATION ANNOUNCED THE FOREIGN PARTICIPANTS WOULD BE CHOSEN BY THE CONSORTIUM LEADER UNDER THE SUPERVISION OF THE FEDERATION BY LATE MONDAY NIGHT KOLON WAS WITHHOLDING ITS SUPPORT FOR THE CONSORTIUM IN EXCHANGE FOR A ROLE FOR SOUTHWESTERN BELL ITS MAIN TECHNOLOGY PARTNER UNDER POSCO'S SUBMISSION PACTEL WAS TO BE THE DOMINANT FOREIGN PARTICIPANT ALL BETS ARE OFF SAYS A REPRESENTATIVE FROM ONE OF THE FOREIGN FIRMS THEY'RE STARTING FROM GROUND ZERO REGARDLESS OF WHICH FOREIGN COMPANIES ARE INCLUDED US COMMERCE OFFICIALS HERE ARE EXPECTED TO PROTEST WHAT THEY CONSIDER A BACKROOM DEAL COBBLED TOGETHER BY THE COUNTRY'S MOST POWERFUL INDUSTRIALISTS ALTHOUGH FOREIGN COMPANIES HAVE WITHHELD FORMAL COMPLAINTS FOR FEAR OF GETTING LOCKED OUT OF THE LINEUP THAT COULD CHANGE ONCE THE SITUATION CONGEALS US TRADE OFFICIALS HAVE EXPRESSED DISSATISFACTION WITH THE FEDERATION'S DECISION TO LIMIT THE FOREIGNEQUITY LEVEL IN THE CONSORTIUM TO 20 INSTEAD OF THE 33 MAXIMUM LEVEL SPECIFIED UNDER A 1992 TELECOMMUNICATIONS AGREEMENT BETWEEN SEOUL AND WASHINGTON 9403010150 940301 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MARCH 114 TRACING 3500 YEARS OF MONGOLIAN HISTORY AND CULTURE THIS EXHIBIT WILL INCLUDE MORE THAN 200 WORKS MANY RECENT DISCOVERIES THAT WILL BE DISPLAYED IN THE WEST FOR THE FIRST TIME PIECES INCLUDE A GOLD CROWN FROM THE WARRING STATES ERA 403 BC221 BC A BRONZE SHORTSWORD OF THE EASTERN HU PEOPLE AND A PAIR OF TOMB GUARDIAN FIGURES FROM THE NORTHERN WEI DYNASTY NATURAL HISTORY MUSEUM OF LOS ANGELES COUNTY 900 EXPOSITION BLVD MARCH 6MAY 22 213 7445054 THIS EXHIBIT EXPLORES THE EVOLUTION OF AMERICA'S CONSUMER CULTURE FOCUSING ON CHANGES IN STYLE AS A DRIVING FORCE BEHIND DESIGN MANUFACTURING AND CONSUMERISM IT FEATURES MORE THAN 200 OBJECTS BY LEADING INDUSTRIAL DESIGNERS WALTER DORWIN TEAGUE NORMAN BEL GEDDES DONALD DESKEY AND HENRY DREYFUSS INCLUDING FURNITURE APPLIANCES PACKAGING AND ADVERTISING NEARLY 200 MEDALS FROM THE COURTS OF LORENZO DE' MEDICI ELIZABETH I AND HOLY ROMAN EMPEROR CHARLES V ARE ON DISPLAY THIS SURVEY BEGINS WITH LEON BATTISTA ALBERTI'S SELFPORTRAIT CIRCA 1435 AND CONCLUDES WITH THE FINELY DETAILED WORKS OF GUILLAUME DUPRE 15791640 WHICH REPRESENT THE HEIGHT OF THE MEDALLIC TRADITION IN FRANCE NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW THROUGH MAY 1 202 7374215 THIS EXHIBIT OF ABOUT 180 WORKS SPANNING FIVE DECADES SHOWCASES THE ARTWORK OF THE PREEMINENT FIGURE OF POSTWORLD WAR II GERMAN ART CHOSEN FROM AN ESTIMATED 10000 DRAWINGS BEUYS DID DURING HIS LIFETIME THESE WORKS ARE DONE IN TRADITIONAL MATERIALS PENCIL WATERCOLOR AND OIL AS WELL AS LESS CONVENTIONAL ONES BLOOD BEESWAX AND CHOCOLATE ART INSTITUTE OF CHICAGO MICHIGAN AVENUE AT ADAMS STREET THROUGH APRIL 24 312 4433600 THIS WORLDRENOWNED ORCHESTRA MAKES ITS ONLY NEW YORK APPEARANCES MARCH 2 3 AND 4 UNDER THE DIRECTION OF RICCARDO MUTI THE GROUP'S REPERTOIRE INCLUDES BEETHOVEN'S SYMPHONY NO 2 STRAVINSKY'S THE FAIRY'S KISS AND MOZART'S SYMPHONY NO 36 LINZ THE COMPANY CLOSES THE SEASON WITH STEPHEN PAULUS'S THE POSTMAN ALWAYS RINGS TWICE THIS PRODUCTION IS BASED ON THE JAMES CAIN NOVEL THAT WAS TRIED FOR OBSCENITY AND VIOLENCE IN BOSTON IN 1934 SOPRANO ANNALISA WINBERG SINGS CORA AND BARITONE FRANCO POMPONI IS FRANK CHAMBERS WILLIAM FRED SCOTT CONDUCTS AND COLIN GRAHAM RETURNS TO THE COMPANY TO DIRECT THE OPERA FOR WHICH HE WROTE THE LIBRETTO EMERSON MAJESTIC THEATRE 219 TREMONT ST MARCH 9 11 13 15 18 AND 20 617 2488660 THIS NEW VENTURE BY MIKHAIL BARYSHNIKOV MAKES ITS NEW YORK DEBUT THE WEEKLONG PROGRAM WILL FEATURE A REVIVAL OF MERCE CUNNINGHAM'S 1970 CLASSIC SIGNALS AS WELL AS MARK MORRIS'S MOSAIC AND UNITED TWYLA THARP'S PERGOLESI AND A NEW WORK BY JEROME ROBBINS OPENING NIGHT WILL BE A 75THBIRTHDAY CELEBRATION FOR MR CUNNINGHAM NEW YORK STATE THEATER AT LINCOLN CENTER 66TH STREET AT BROADWAY MARCH 16 212 8705570 9403010149 940301 INTERNATIONAL SPANISHPERUVIAN GROUP TO BUY PERU PHONE SYSTEM LIMA PERU A CONSORTIUM CONSISTING OF TELEFONICA DE ESPANA SA AND THREE PERUVIAN COMPANIES AGREED TO PURCHASE A CONTROLLING STAKE IN THE STATEOPERATED PERUVIAN TELEPHONE SYSTEM FOR 2 BILLION THE HEFTY PURCHASE PRICE WHICH WAS NEARLY FOUR TIMES THE MINIMUM BID SET BY THE GOVERNMENT AND 25 TIMES THE BIDS TENDERED BY TWO COMPETING CONSORTIA REFLECTS PERU'S IMPROVING ECONOMIC AND POLITICAL CONDITIONS THE PACKAGE PURCHASED BY THE TELEFONICA GROUP CONSISTS OF A 35 CONTROLLING INTEREST IN THE GOVERNMENT'S WHOLLY OWNED EMPRESA NACIONAL DE TELECOMUNICACIONES DEL PERU OR ENTEL AND A 20 CONTROLLING INTEREST IN ITS CIA PERUANA DE TELEFONOS ENTEL PROVIDES LONGDISTANCE PHONE SERVICE FOR THE ENTIRE COUNTRY AS WELL AS LOCAL SERVICE OUTSIDE THE CAPITAL OF LIMA CPT WHICH PROVIDES LOCAL PHONE SERVICE TO LIMA ALSO HAS A CABLE TELEVISION LICENSE ALONG WITH MADRIDBASED TELEFONICA THE WINNING GROUP INCLUDED CERVECERIA BACKUS & JOHNSTON SA PERU'S LARGEST BEER MAKER BANCO WIESE LTD THE COUNTRY'S SECONDLARGEST BANK AND GRANA Y MONTERO SA A PERUVIAN CONSTRUCTION FIRM THE BID BY THE TELEFONICA DE ESPANA GROUP FAR SURPASSED OFFERS BY TWO COMPETING GROUPS LED BY GTE CORP OF STAMFORD CONN AND SOUTHWESTERN BELL CORP OF SAN ANTONIO 9403010148 940301 WORLD MARKETS TOKYO SHARES CLIMB 1 DESPITE PROFITTAKING IN EUROPEAN REBOUND LONDON SCORES 14 RISE A WALL STREET JOURNAL ROUNDUP TOKYO SHARE PRICES ROSE 1 MONDAY EVEN AFTER A LATE BOUT OF PROFITTAKING ERODED GAINS AS RECOVERY IN EUROPEAN BOND MARKETS SPILLED OVER INTO STOCK MARKETS LONDON EQUITIES RALLIED 14 FINISHING AT HIGHS ON THE FIRST DAY OF A NEW TRADING ACCOUNT FRANKFURT STOCKS ROSE SOLIDLY BUOYED BY A RECOVERY IN THE BOND AND FUTURES MARKETS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11674 UP 102 REFLECTING HIGHER MARKETS IN ALL REGIONS CONSUMER SERVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13676 UP 304 OR 23 WITH ACTAVA GROUP OF THE US POSTING A 46 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 8177 DOWN 169 OR 2 WITH PHILIP MORRIS OF THE US SLIDING 35 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 3790 POINTS FRIDAY GAINED 19382 TO 1999720 IN TRADING TUESDAY IN TOKYO THE NIKKEI INDEX CLIMBED 18172 POINTS TO CLOSE THE MORNING SESSION AT 2017892 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A RELATIVELY BRISK 430 MILLION SHARES DOWN FROM 4479 MILLION SHARES IN THE PREVIOUS SESSION GAINERS TROUNCED LOSERS 810244 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 225 POINTS FRIDAY SURGED 2184 OR 14 TO 163171 THE NIKKEI OPENED AT ITS INTRADAY LOW OF 1984858 AND SCORED A HIGH OF 2011721 UP 16 THEN WAFFLED BEFORE LOSING GROUND TO PROFIT TAKERS AND ENDING BELOW 20000 A PERCEIVED SUPPORT LEVEL OVERSEAS INVESTORS AND NEW JAPANESE INVESTMENT TRUST FUNDS WERE THE MAIN BUYERS AND CORPORATIONS SOLD POSITIONS BOOKING PROFITS AHEAD OF THE END OF THE FISCAL YEAR ON MARCH 31 THOUGH THE CORPORATE SELLING PRESSURE LIGHTENED COMPARED WITH RECENT SESSIONS INVESTORS ALSO AWAITED THE BANK OF JAPAN QUARTERLY SURVEY OF BUSINESS SENTIMENT CALLED TANKAN TO BE RELEASED TUESDAY INDICATING THE ECONOMY'S SITUATION ON THE RECOVERY TRAIL INVESTORS ALSO WERE CAUTIOUS ABOUT A POTENTIAL SHAKEUP IN JAPAN'S GOVERNING COALITION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX JUMPED 469 POINTS TO 33281 THE FT 30STOCK INDEX RACED UP 282 POINTS OR 11 TO 25641 VOLUME WAS A RELATIVELY LOW 7054 MILLION SHARES COMPARED WITH 7924 MILLION SHARES IN THE PREVIOUS SESSION THE INITIAL FUEL FOR THE LONDON RISE CAME FROM A RALLY IN THE BOND AND FUTURES MARKETS GAINS WERE SPURRED FURTHER BY BRITISH MONEYSUPPLY DATA THAT SHOWED A STRONG ECONOMIC RECOVERY SOLID CORPORATE EARNINGS AND A HIGHER OPENING ON WALL STREET FOLLOWING THE LONDON STOCK MARKET'S RECENT DROPS WHICH WERE CONSIDERED OVERDONE INVESTORS FOUND BUYING OPPORTUNITIES THE BOURSE'S STRENGTH WAS EVEN GREATER THAN INDICATED BY THE INDEX AS STOCKS THAT WENT EXDIVIDEND SHAVED 52 POINTS OFF THE 100STOCK INDEX'S FINISH ANOTHER BULLISH FACTOR KEEPING EQUITIES IN POSITIVE TERRITORY ALL DAY WAS THE GERMAN BUNDESBANK'S ANNOUNCEMENT THAT IT WILL RETURN TO VARIABLE REPURCHASE RATES THE CENTRAL BANK ON DEC 2 FROZE THE WEEKLY REPO RATE WITH FIXEDRATE INSTRUMENTS AND THE RETURN TO A VARIABLE RATE WAS VIEWED IN LONDON AS A SIGNAL FOR MORE EUROPEAN INTERESTRATE REDUCTIONS WHICH COULD BOOST ECONOMIES AND STOCK MARKETS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1665 POINTS TO 209157 UP FROM LOWS THAT RESULTED FROM NEWS THAT US FIGHTER PLANES UNDER AUSPICES OF THE NORTH ATLANTIC TREATY ORGANIZATION SHOT DOWN SERBIAN AIRCRAFT OVER BOSNIA IN THE CIVIL WAR THERE GERMAN FUTURES TRADING WAS STRONG DRIVEN BY A TECHNICAL REBOUND WHICH IN TURN DROVE THE STOCK MARKET UP IN PARIS REBOUNDING FROM LAST WEEK'S STEEP LOSSES SPARKED BY A SMALLERTHANEXPECTED FRENCH RATE CUT STOCKS RALLIED 18 THOUGH THE RISE WAS TECHNICALLY BASED AND EXAGGERATED A BIT BY THIN TURNOVER BLUE CHIPS GAINED BROADLY IN AMSTERDAM SHARES POSTED SHARP ADVANCES ON EXPECTATIONS THAT THE CENTRAL BANKS OF GERMANY AND IN TURN THE NETHERLANDS WILL EASE SHORTTERM INTEREST RATES THIS WEEK AND ON A RALLY IN THE DUTCH GOVERNMENTBOND MARKET SHARES ALSO WERE BUOYED BY BETTERTHANEXPECTED NEWS OF THE DUTCH ECONOMY'S STRENGTH LAST YEAR AND OF CORPORATE EARNINGS IN STOCKHOLM EQUITIES STAGED A CAUTIOUS BLUECHIPLED RECOVERY FROM LAST WEEK'S SLUMP THOUGH THEY ENDED BELOW INTRADAY HIGHS BUT IN ZURICH STOCKS TUMBLED 15 AS HEAVY SELLING IN THE BANKING SECTOR YANKED OTHER BLUE CHIPS DOWN THE SELLOFF WAS TRIGGERED BY DOWNGRADED RATINGS OF SOME BANK STOCKS AND THE BOSNIA MILITARY ACTION ALSO SCARED SOME INVESTORS OUT OF THE MARKET IN SYDNEY SHARE PRICES CLIMBED 15 WITH MOST SECTORS GAINING AFTER LAST FRIDAY'S 22 SELLOFF A STEADIER TONE FRIDAY ON WALL STREET ALSO HELPED PROVIDE THE MARKET WITH DIRECTION AS DID A HIGHER GOLD PRICE AND SOFTER AUSTRALIAN DOLLAR IN HONG KONG STOCKS SOARED 31 IN A TECHNICAL REBOUND FOLLOWING TWO DIVES IN A ROW ON ESCALATING SINOBRITISH POLITICAL TENSIONS ABOUT THE BRITISH COLONY'S ELECTORAL REFORM PLAN THE MARKET WAS PROPELLED HIGHER PRIMARILY BY EXPECTATIONS FOR SOLID CORPORATE EARNINGS IN WELLINGTON SHARES REBOUNDED 13 THOUGH THE GAINS CAME ON LOW VOLUME IN TAIPEI EQUITIES SANK 31 ON INCREASING INVESTOR PESSIMISM ADDING TO SATURDAY'S 13 DROP AND CONTINUING A TWOWEEK BEAR RUN LINKED TO DOUBTS ABOUT THE TAIWAN CENTRAL BANK'S COMMITMENT TO LIBERALIZING FINANCIAL MARKETS THE PLUNGE WAS LED BY FINANCIAL SHARES THAT WERE CONSIDERED OVERPRICED AFTER PREVIOUS STRONG BUYING IN THAT SECTOR IN MANILA SHARES SLUMPED 32 IN LIGHT VOLUME SPOOKED BY PRICE PRESSURE ON THE TELEPHONE SECTOR IN SEOUL THE MAIN INDEX FELL PULLED DOWN BY HEAVY SELLING OF BLUE CHIPS THOUGH ADVANCING ISSUES OUTNUMBERED DECLINERS AS SMALL INEXPENSIVE STOCKS RALLIED IN BANGKOK STOCKS PLUNGED 33 ON LATE PROFITTAKING BUT TRADING WAS LIGHT IN SINGAPORE EQUITIES FELL IN CAUTIOUS TRADING AS A ROBUST START FIZZLED OUT IN KUALA LUMPUR PRICES EDGED UP IN MODERATE TRADING AS AN EARLY ADVANCE WAS ERODED BY PROFITTAKING 9403010147 940301 WHO'S NEWS PROMUS COS PROMUS COS MEMPHIS TENN THE COMPANY NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER PHILIP G SATRE AS CHIEF EXECUTIVE OFFICER SUCEEDING MICHAEL D ROSE MR ROSE 52 YEARS OLD WILL REMAIN CHAIRMAN AND FOCUS ON PROMUS'S CASINO DEVELOPMENT THE COMPANY'S PRIME SOURCE OF GROWTH WHILE THE MOVE WAS UNEXPECTED ANALYSTS SAID IT WILL BETTER POSITION PROMUS IN THE INDUSTRY MR SATRE 44 HAS BEEN WITH THE COMPANY SINCE 1980 AND HAS SERVED AS PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1991 PROMUS IS THE PARENT OF HARRAH'S EMBASSY SUITES HAMPTON INN AND HOMEWOOD SUITES 9403010146 940301 WHO'S NEWS PECO ENERGY CO REALIGNS GROUPS FILLS NEW OFFICES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA PECO ENERGY CO FORMERLY PHILADELPHIA ELECTRIC CO SAID IT ADOPTED A NEW ORGANIZATIONAL STRUCTURE ALONG THE LINE OF SHIFTS BEING MADE BY A NUMBER OF UTILITIES TO REFLECT CHANGING REGULATORY REQUIREMENTS AS WELL AS COMPETITIVE PRESSURES UTILITIES GENERALLY ARE SEPARATING REGULATED AND NONREGULATED BUSINESSES AS WELL AS POWER DISTRIBUTION AND GENERATION ACTIVITIES ALL FIVE BUSINESS UNITS OF PECO WILL REPORT TO CORBIN A MCNEILL JR PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM L BARDEEN 55 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GROUP EXECUTIVE OF THE CONSUMER ENERGY SERVICES GROUP WHICH DISTRIBUTES ENERGY TO 15 MILLION ELECTRIC AND GAS RETAIL CUSTOMERS KENNETH G LAWRENCE 46 WAS NAMED TO SUCCEED MR BARDEEN AS SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER MR LAWRENCE HAS BEEN VICE PRESIDENT OF THE NATURAL GAS BUSINESS SINCE 1990 AND PREVIOUSLY HEADED COMMERCIAL OPERATIONS THE BULK POWER ENTERPRISES UNIT WHICH MARKETS AND SELLS ENERGY TO WHOLESALE CUSTOMERS WILL BE HEADED BY ALVIN J WEIGAND 55 SENIOR VICE PRESIDENT AND GROUP EXECUTIVE MR WEIGAND HAD HEADED TRANSMISSION AND DISTRIBUTION SERVICES DICKINSON M SMITH 60 HEAD OF NUCLEAR OPERATIONS WAS NAMED SENIOR VICE PRESIDENT AND CHIEF NUCLEAR OFFICER OF THE NUCLEAR GENERATION GROUP JOHN M MADARA JR 50 FORMER VICE PRESIDENT PRODUCTION WILL BECOME SENIOR VICE PRESIDENT AND GROUP EXECUTIVE OF THE POWER GENERATION GROUP WHICH OPERATES THE COMPANY'S FOSSILFIRED AND HYDROELECTRIC GENERATING UNITS THE HEAD OF THE GAS SERVICES NATURAL GAS BUSINESS WILL BE NAMED LATER SEPARATELY STANDARD & POOR'S CORP SAID IT AFFIRMED ITS RATINGS ON ABOUT 54 BILLION OF PECO ENERGY DEBT INCLUDING TRIPLEBPLUS RATED SENIOR SECURED DEBT S&P NOTED PROSPECTS FOR CONTINUED FINANCIAL STRENGTHENING AIDED BY GRADUAL DEBT REDUCTION THE RATINGS OUTLOOK REMAINS NEGATIVE HOWEVER SINCE PECO IS UNLIKELY TO REACH THE FINANCIAL PARAMETERS APPROPRIATE FOR ITS BUSINESS POSITION FOR SEVERAL YEARS S&P SAID THE RATINGS AGENCY SAID THE COMPANY'S BUSINESS POSITION IS SOMEWHAT BELOW AVERAGE REFLECTING A HEAVY DEPENDENCE ON NUCLEAR GENERATION HIGH ELECTRIC RATES A LARGE INDUSTRIAL SECTOR LITTLE SALESGROWTH PROSPECTS THESE NEGATIVES ARE TEMPERED BY AMPLE GENERATING CAPACITY LIMITED CONSTRUCTION ACTIVITY AN ABSENCE OF RATE PRESSURES AND SIGNS OF A REBOUNDING AND DIVERSIFICATION OF THE PHILADELPHIAAREA ECONOMY 9403010145 940301 WHO'S NEWS GEORGIAPACIFIC SAYS VAN METER IS RETIRING AS ITS FINANCIAL CHIEF ATLANTA GEORGIAPACIFIC CORP SAID JAMES C VAN METER VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER IS RETIRING MR VAN METER 55 YEARS OLD HAD JOINED THE FORESTPRODUCTS CONCERN IN 1983 AS CFO HE WILL BE SUCCEEDED IN THAT POSITION BY JOHN F MCGOVERN 47 CURRENTLY SENIOR VICE PRESIDENT FINANCE MR MCGOVERN JOINED GEORGIAPACIFIC 13 YEARS AGO AS VICE PRESIDENT PROJECT FINANCING AT ONE TIME MR VAN METER WAS CONSIDERED A CANDIDATE TO SUCCEED T MARSHALL HAHN JR FORMER CHIEF EXECUTIVE OFFICER BUT IN JANUARY 1993 THE COMPANY NAMED AD PETE CORRELL PRESIDENT AND CHIEF OPERATING OFFICER TO THAT POSITION AT THE TIME MR VAN METER WAS ELEVATED TO VICE CHAIRMAN MR VAN METER'S RETIREMENT AS CFO AND AS A DIRECTOR IS EFFECTIVE IMMEDIATELY HE WILL RETAIN THE OFFICE OF VICE CHAIRMAN UNTIL MARCH 11 AND WILL CONTINUE TO WORK WITH THE COMPANY AS A CONSULTANT 9403010144 940301 THRIFTCONVERSION BENEFIT IS SOUGHT FOR GOVERNMENT WASHINGTON THE CONGRESSIONAL BUDGET OFFICE ENDORSED AN IDEA THAT'S GETTING SOME ATTENTION ON CAPITOL HILL LETTING THE GOVERNMENT TAP INTO THE WINDFALLS CREATED WHEN MUTUAL SAVINGS BANKS BECOME STOCKHOLDEROWNED INSTITUTIONS ACTING ON A REQUEST BY REP HENRY GONZALEZ D TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN THE CBO SAID THE GOVERNMENT HAS A REASONABLE CLAIM TO SOME OF THE GAINS BECAUSE FEDERAL DEPOSIT INSURANCE HELPS THRIFTS ACCUMULATE THEIR NET WORTH THE CBO SAID THE GOVERNMENT COULD BE GRANTED OPTIONS TO BUY CONVERSION STOCK OR IT COULD TAX GAINS FROM CONVERSIONS MR GONZALEZ IS INTERESTED IN THE CONCEPT OF THE GOVERNMENT CLAIMING SOME OF THE WINDFALLS THAT GO HEAVILY TO MANAGEMENT WHEN A DEPOSITOROWNED SAVINGS BANK CONVERTS TO A STOCK SAVINGS BANK A COMMITTEE STAFFER SAID BUT SO FAR THE HOUSE AND SENATE BANKING PANELS ARE CONCENTRATING ON LEGISLATION THAT WOULD HELP PUSH FEDERAL FINANCIAL REGULATORS TO ADOPT STIFFER CONVERSION RULES THAT BENEFIT DEPOSITORS MORE AS THEY LIMIT INSIDER WINDFALLS SOME WITNESSES IN RECENT COMMITTEE HEARINGS HAVE URGED THAT PART OF THE WINDFALLS GO EITHER TO THE GOVERNMENT OR TO LOCAL COMMUNITIES 9403010143 940301 INTERNATIONAL QUIRKY CONFLICTS MIRE BANKRUPTCY CASE INVOLVING CREDIT LYONNAIS AND SASEA BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE WIFE OF A GENEVA MAGISTRATE WHO IS ACCUSING FRANCE'S CREDIT LYONNAIS OF COMPLICITY IN A MAJOR SWISS BANKRUPTCY CASE HAS PROFESSIONAL LINKS TO THE FAILED COMPANY AT THE HEART OF THE AFFAIR THE CONNECTION IS ONE OF SEVERAL APPARENT CONFLICTS OF INTEREST AND OTHER ALLEGED LAPSES THAT ARE TURNING THE BITTERLY DISPUTED CASE INTO AN ETHICAL QUAGMIRE AMONG OTHER THINGS SUPPOSEDLY KEY DOCUMENTS ARE SAID TO HAVE DISAPPEARED AN INDEPENDENT EXPERT APPOINTED BY THE COURT TURNS OUT TO HAVE BUSINESS TIES TO THE MAIN DEFENDANT'S LAWYERS AND CONFIDENTIAL SWISS COURT PAPERS THAT CREDIT LYONNAIS HADN'T SEEN ARE SUDDENLY BEING USED AS EVIDENCE AGAINST IT IN A SEPARATE LEGAL BATTLE THE BANK IS WAGING IN THE US ARGUMENTS OVER LEGAL ETHICS ARE NOW LARGELY OVERSHADOWING THE SUBSTANCE OF THE SWISS INVESTIGATION INTO THE BANKRUPTCY OF SASEA HOLDING SA WHICH COLLAPSED IN 1992 AMID FRAUD ALLEGATIONS STATEOWNED CREDIT LYONNAIS FRANCE'S BIGGEST BANK CONTENDS IT ISN'T GETTING A FAIR HEARING LAST WEEK IT FORMALLY REQUESTED THAT THE MAGISTRATE JEANLOUIS CROCHET BE RECUSED FROM THE CASE ALLEGING HE HAS A PERSONAL ANIMOSITY AGAINST THE BANK THE REQUEST WAS FILED BEFORE DETAILS OF THE LINK BETWEEN THE CASE AND MR CROCHET'S WIFE EMERGED CHARGES OF IMPROPRIETY HOWEVER ALSO GO THE OTHER WAY IN A COURT ORDER THIS MONTH MR CROCHET ACCUSED CREDIT LYONNAIS OF SERIOUSLY VIOLATING THE RULES OF GOOD FAITH BY ALLEGEDLY CONCEALING ESSENTIAL DOCUMENTS THE MAGISTRATE'S ORDER SAYS THE DOCUMENTS INCLUDE A MEMO APPARENTLY FROM THE BANK'S LAWYERS WHITE & CASE SUGGESTING TO THE BANK THAT IT REMOVE FROM ITS OFFICES VARIOUS DOCUMENTS RELATING TO THE DISPUTE THE BANK DENIES THE CHARGE SAYING IT HAS GIVEN JUDGE CROCHET FREE ACCESS TO ALL DOCUMENTS IN THE CASE EXCEPT FOR PRIVILEGED COMMUNICATIONS WITH ITS ATTORNEY IT WAS STUNNED TO SEE JUDGE CROCHET'S ALLEGATIONS NOW BEING USED AGAINST IT BY US FINANCIER KIRK KERKORIAN IN LOS ANGELES COUNTY SUPERIOR COURT MR KERKORIAN WHO IS BEING SUED BY CREDIT LYONNAIS IN CONNECTION WITH HIS 1990 SALE OF THE FILM STUDIO METROGOLDWYNMAYER INC IS USING JUDGE CROCHET'S SWISS COURT ORDER AS EVIDENCE OF WHAT HIS LAWYERS DESCRIBE AS A COVERUP BY THE FRENCH BANK HE FILED A COURT MOTION LAST WEEK CALLING FOR THE DISMISSAL OF THE CREDIT LYONNAIS SUIT AGAINST HIM SWISS COURT PAPERS AREN'T USUALLY OPEN TO THE PUBLIC MR KERKORIAN'S LAWYERS SAY THEY OBTAINED THE DOCUMENTS FROM PARTIES IN THE SASEA CASE THEY WON'T NAME THE PRACTICE DOESN'T VIOLATE SWISS LAW SAYS A SENIOR JUSTICE MINISTRY OFFICIAL IN BERN BUT IT IS ASTONISHING THE DOCUMENTS ENDED UP IN KERKORIAN'S HANDS NORMALLY THESE FILES ARE SECRET SAID THE OFFICIAL WHO ASKED NOT TO BE IDENTIFIED IN FACT BY ATTACHING THE SWISS PAPERS TO HIS MOTION MR KERKORIAN HAS ENABLED CREDIT LYONNAIS TO SEE THEM FOR THE FIRST TIME ITS LAWYERS SAY JUDGE CROCHET HAD PREVIOUSLY REMOVED THE BANK'S RIGHT TO BE A CIVIL PARTY TO THE CRIMINAL CASE DENYING THE BANK ACCESS TO ALL COURT DOCUMENTS ACCUSING THE BANK OF COMPLICITY IN SASEA'S BANKRUPTCY JUDGE CROCHET SAID HE WILL ASK FRENCH AUTHORITIES TO INDICT THE FORMER CHAIRMAN OF CREDIT LYONNAIS AND A TOP OFFICIAL STILL WITH THE BANK IN DOING SO THE MAGISTRATE HAS LARGELY ENDORSED THE ARGUMENT OF SASEA'S FORMER OWNER FLORIO FIORINI AN ITALIAN FINANCIER WHO IS IN JAIL IN GENEVA PENDING CHARGES JUDGE CROCHET'S WIFE CATHERINE IS A PARTNER IN THE GENEVA LAW FIRM CROCHET DELAUNEY & SIEGRIST DOCUMENTS SHOW THAT HER FIRM REPRESENTS SI BANK CO WHICH WAS CONTROLLED BY MR FIORINI AND WAS A PART OF SASEA'S CORPORATE WEB AN AUDITOR'S REPORT ON SASEA FOLLOWING ITS COLLAPSE SUGGESTED THAT MR FIORINI MADE EXTENSIVE USE OF SI BANK WHICH IS INCORPORATED IN WESTERN SAMOA TO SHIFT ASSETS BETWEEN HIS COMPANIES TO CLEAN UP THEIR BALANCE SHEETS AS PART OF HIS PROBE JUDGE CROCHET SEARCHED SI BANK'S MONACO OFFICE IN AN INTERVIEW MRS CROCHET ACKNOWLEDGED HER FIRM HAD REPRESENTED SI BANK ALTHOUGH SHE SAID THE WORK WAS CARRIED OUT BY A PARTNER PIERRE SIEGRIST AND SHE WASN'T PERSONALLY INVOLVED SHE SAID SHE HAD DISCOVERED THE LINK THE PREVIOUS DAY AND IMMEDIATELY NOTIFIED THE GENEVA CHIEF PROSECUTOR BERNARD BERTOSSA MR BERTOSSA CONFIRMED THAT MRS CROCHET HAD INFORMED HIM OF THE LINK BUT PLAYED DOWN ITS IMPORTANCE IT IS AN INCIDENT THAT SHOULD HAVE NO BEARING ON THE SASEA PROCEDURE HE SAID LAWYERS FOR CREDIT LYONNAIS HOWEVER SAY THE LINK IS THE SECOND APPARENT CONFLICT OF INTEREST THEY HAVE IDENTIFIED IN ITS REQUEST FOR JUDGE CROCHET TO BE RECUSED THE FRENCH BANK SAID GERHARD AUER A SUPPOSEDLY INDEPENDENT AUDITOR APPOINTED BY JUDGE CROCHET WAS IN FACT A BUSINESS ASSOCIATE OF THE LAW FIRM REPRESENTING MR FIORINI BONNANT & PEYROT AMONG OTHER THINGS NICOLAS PEYROT IS THE FORMER PRESIDENT OF MR AUER'S AUDIT COMPANY CORESA SA SWISS RECORDS SHOW MR FIORINI'S LAWYER MARC BONNANT SAID IN AN INTERVIEW THAT THE TIES BETWEEN MR PEYROT AND CORESA ARE NO SECRET BUT HE STRESSED THAT MR AUER WAS WORKING ON THE SASEA CASE AS AN INDEPENDENT EXPERT NOT ON BEHALF OF CORESA 9403010142 940301 WILLIAMSSONOMA HOLIDAY SALES SAN FRANCISCO WILLIAMSSONOMA INC REPORTED HOLIDAY SALES OF 1627 MILLION FOR THE FOURTH QUARTER ENDED JAN 30 UP 262 FROM YEAREARLIER SALES OF 129 MILLION THE RETAILER OF KITCHENWARE AND OTHER PRODUCTS FOR HOME AND GARDEN SAID COMPARABLESTORE SALES ROSE 225 FOR THE 13WEEK PERIOD MAILORDER SALES SURGED 373 FOR THE PERIOD THE COMPANY ADDED 9403010141 940301 INTERNATIONAL JAPANESE HOUSEHOLD SPENDING TOKYO JAPAN'S HOUSEHOLD SPENDING IN DECEMBER WAS 438233 YEN 4186 ON AVERAGE UP 04 FROM THE SAME MONTH A YEAR EARLIER IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE REPORTED THE RISE STRETCHED THE STREAK OF YEARONYEAR EXPANSION IN HOUSEHOLD SPENDING TO THREE MONTHS GIVEN INCREASES OF 14 IN NOVEMBER AND 04 IN OCTOBER THE FIRST YEARONYEAR RISE IN SIX MONTHS 9403010140 940301 BUSINESS BRIEF PRATT & LAMBERT SETS CASH STOCK PURCHASE OF UNITED COATINGS BUFFALO NY PRATT & LAMBERT INC SAID IT WOULD BUY UNITED COATINGS INC FOR CASH AND STOCK VALUED AT ABOUT 108 MILLION AND ASSUME UNITED COATINGS' DEBT THE COMPANY SAID IN OCTOBER 1993 THAT IT WAS SEEKING A MERGER PARTNER THE NEW COMPANY WILL HAVE REVENUE OF MORE THAN 415 MILLION PRATT & LAMBERT SAID PRATT & LAMBERT MAKES ARCHITECTURAL FINISHES CHEMICAL COATINGS AND ADHESIVES FOR THE INDUSTRIAL AND CONSUMER MARKETS ITS 1993 SALES WERE ABOUT 242 MILLION UNITED IS A CLOSELY HELD PRODUCER OF ARCHITECTURAL FINISHES WHICH ARE SOLD PREDOMINANTLY UNDER PRIVATE LABEL ITS 1993 SALES WERE ABOUT 175 MILLION UNDER THE TERMS OF THE TRANSACTION PRATT & LAMBERT WILL ISSUE FIVE MILLION SHARES OF COMMON STOCK TO UNITED COATINGS SHAREHOLDERS PAY ABOUT 17 MILLION IN CASH AND ASSUME UNITED COATINGS' DEBT THE AMOUNT OF DEBT WASN'T DISCLOSED JOSEPH J CASTIGLIA PRATT & LAMBERT'S PRESIDENT AND CHIEF EXECUTIVE WILL CONTINUE IN HIS SAME POSITIONS AT THE NEW COMPANY JULES KNAPP WILL REMAIN PRESIDENT AND CEO OF UNITED COATINGS WHICH WILL BECOME AN AUTONOMOUSLY OPERATED UNIT OF THE NEW COMPANY SIX REPRESENTATIVES OF UNITED SHAREHOLDERS INCLUDING MR KNAPP WILL JOIN PRATT & LAMBERT'S SEVENMEMBER BOARD TO FORM THE BOARD OF THE NEW COMPANY TO BE RENAMED PRATT & LAMBERT UNITED INC RD STEVENS JR WILL CONTINUE TO SERVE AS CHAIRMAN AND MR CASTIGLIA AND MR KNAPP WILL BE VICE CHAIRMEN CORPORATE HEADQUARTERS WILL REMAIN IN BUFFALO PRATT & LAMBERT SHARES CLOSED AT 19 UP 75 CENTS IN AMERICAN STOCK EXCHANGE TRADING THE TRANSACTION IS EXPECTED TO BE COMPLETED BY MIDYEAR 9403010139 940301 LUKENS SELLS SUBSIDIARY COATESVILLE PA LUKENS INC SAID IT COMPLETED THE SALE OF ITS MATERIALS HANDLING GROUP TO POWERSCREEN INTERNATIONAL PLC OF NORTHERN IRELAND TERMS WEREN'T DISCLOSED THE UNIT WHICH HAD 1993 SALES OF ABOUT 25 MILLION MAKES AND SELLS PRODUCTS FOR PROCESSING AND CONVEYING BULK MATERIALS SUCH AS CRUSHED STONE SAND AND GRAVEL LUKENS IS A STEELMAKER 9403010138 940301 PEPPERAND SALT BUT FOR DEBTS I PREFER IT LOW THIS TOPS 'EM THESE DAYS IF SOMETHING'S NOT WORTH SAYING IT'S SUNG 9403010137 940301 WHO'S NEWS JOHN SYKES REJOINS VIACOM'S MTV UNIT AS PRESIDENT OF VH1 NEW YORK VIACOM INC'S MTV NETWORKS UNIT IN A MOVE TO REPOSITION ITS VH1 MUSICVIDEO CHANNEL NAMED JOHN SYKES PART OF THE ORIGINAL MANAGEMENT TEAM AT MTV IN THE EARLY 1980S AS PRESIDENT OF VH1 MR SYKES 38 YEARS OLD SUCCEEDS ED BENNETT WHO HAD BEEN PRESIDENT OF VH1 FOR THE PAST FIVE YEARS MR BENNETT 46 RESIGNED TO PURSUE OTHER OPPORTUNITIES THE COMPANY SAID HE COULDN'T BE REACHED FOR COMMENT BUT MTV CLEARLY BROUGHT MR SYKES BACK IN A BID TO ENERGIZE VH1 WHICH IS AIMED AT AN OLDER MORE AFFLUENT AUDIENCE THAN MTV'S PRIMARY MTV NETWORK MR SYKES JOINS VH1 FROM THORN EMI PLC'S EMI MUSIC PUBLISHING WORLDWIDE WHERE HE WAS EXECUTIVE VICE PRESIDENT OF TALENT ACQUISITION AND MARKETING DURING HIS TIME THERE HE FORGED STRONG TIES WITH THE RECORDING INDUSTRY SIGNING SUCH ARTISTS AS STONE TEMPLE PILOTS DANZIG AND COUNTING CROWS EARLIER HE SERVED AS PRESIDENT OF EMI'S CHRYSALIS RECORDS WHERE HE GUIDED THE LABEL'S US OPERATIONS AFTER HIS FIRST STINT AT MTV HE JOINED HOLLYWOOD'S CREATIVE ARTISTS AGENCY AS A MUSIC AGENT THE MOVE COMES AT A TIME WHEN MTV AND VH1 FACE MAJOR NEW COMPETITORS WHO WILL LAUNCH MUSIC NETWORKS LATER THIS YEAR WITH 50 MILLION SUBSCRIBERS VH1 HAS LONG STRUGGLED TO DEFINE AN AUDIENCE AND STAND OUT OF THE SHADOW OF ITS LARGER SISTER NETWORK MTV WITH 573 MILLION SUBSCRIBERS WHILE VH1 IS PROFITABLE AND HAS GOOD DISTRIBUTION ON CABLE SYSTEMS ITS 1993 NET AD REVENUE IS ONLY ABOUT A QUARTER OF MTV'S 155 MILLION HOUSEHOLD RATINGS ARE WEAK COMPARED WITH MTV 9403010136 940301 ECONOMY SOME CUTS IN JOBS GENERATE JOB GROWTH LABOR NEEDS EXPAND AS MANUFACTURERS RAISE PRODUCTIVITY BY NEELA BANERJEE AND FRED R BLEAKLEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK HERE'S SOME HEARTENING IF PARADOXICAL NEWS ON THE EMPLOYMENT FRONT ALL THOSE LAYOFFS IN MANUFACTURING OVER THE PAST FEW YEARS MAY BE SPARKING SOME RENEWED HIRING NOW CONSIDER WHAT HAS HAPPENED AT DIEBOLD INC THE MAKER OF AUTOMATEDTELLER MACHINES CLOSED AN ANTIQUATED FACTORY IN OHIO IN 1991 AND LAID OFF A NUMBER OF WORKERS ABOUT THE SAME TIME IT OPENED TWO MOREEFFICIENT PLANTS IN THE SOUTH AND THEN ROLLED OUT AN UPGRADED TELLER MACHINE THE RESULT BUSINESS IS UP AND DIEBOLD JUST HIRED 100 FACTORY WORKERS TO FILL ITS GROWING NUMBER OF ORDERS THE REASON IN PART IS PRODUCTIVITY ECONOMISTS HAVE LONG ARGUED THAT CORPORATE AMERICA'S BLOATED PAYROLLS AND INEFFICIENT MANUFACTURING METHODS OFTEN MADE US PRODUCTS UNCOMPETITIVE PARTICULARLY ON PRICE AND QUALITY AT HOME AND ABROAD BUT SEVERAL YEARS OF SLIMMING DOWN IN MANY INDUSTRY SECTORS HAS RAISED PRODUCTIVITY OR THE VALUE OF OUTPUT PRODUCED PER HOUR WORKED THAT HAS HELPED MAKE MANY BUSINESSES NEWLY COMPETITIVE SALES ARE UP AND SO TOO THE COMPANIES' NEED FOR LINE WORKERS AND PROFESSIONALS PRODUCTIVITY GAINS USUALLY MEAN SHORTTERM LOSSES IN EMPLOYMENT BUT ULTIMATELY THOSE GAINS HELP OUR POSITION INTERNATIONALLY SO WE EXPORT MORE GOODS AND CREATE MORE JOBS SAYS ROSS DEVOL SENIOR ECONOMIST WITH THE WEFA GROUP US MANUFACTURERS' POSITIONS VS JAPANESE AND GERMAN COMPETITORS HAVE IMPROVED IMMENSELY THOUGH THE UPTICK IN DEMAND FOR MANUFACTURING WORKERS ISN'T EXPECTED TO COME CLOSE TO LEVELS OF FIVE OR 10 YEARS AGO IT SHOULD HELP NIBBLE AWAY AT THE NATION'S STUBBORNLY HIGH UNEMPLOYMENT RATE WHICH STOOD AT 67 IN JANUARY IT SHOULD ALSO PARTLY OFFSET SOME OF THE LAYOFFS THAT COMPANIES SUCH AS WESTINGHOUSE ELECTRIC CORP AND SCOTT PAPER CO STILL TRIMMING THE FAT CONTINUE TO ANNOUNCE AND THAT THE SERVICE SECTOR IS EXPECTED TO UNDERGO AS IT IMPROVES PRODUCTIVITY INDEED LABOR ECONOMISTS AND INDUSTRY EXECUTIVES BELIEVE THERE WILL BE SOME OVERALL JOB GROWTH THIS YEAR ON THE SHOP FLOOR AND MANAGEMENT OFFICES OF THE MANUFACTURING SECTOR FOR THE FIRST TIME IN FOUR YEARS ABOUT 40000 JOBS WERE ADDED IN THE FOURTH QUARTER OF 1993 AND AN ADDITIONAL 26000 JOBS IN JANUARY BRINGING THE SIZE OF THE MANUFACTURING WORK FORCE TO ABOUT 178 MILLION MUCH OF THAT IS A REFLECTION OF AN ECONOMY IN RECOVERY BUT IT'S ALSO DUE TO IMPROVING PRODUCTIVITY I THINK WE'VE GOTTEN STRONGER OVER THE LAST FEW YEARS SAYS DOUG OTTO CHIEF OPERATING OFFICER OF HARDIGG INDUSTRIES INC A MAKER OF SHIPPING CONTAINERS AND BATTERYCELL JARS IN COLUMBUS IND EVERYONE TALKS THE TALK ABOUT REENGINEERING BUT NOT EVERYONE DOES IT HARDIGG USED TO MAKE BOTH SHIPPING CONTAINERS AND INDUSTRIAL BATTERYCELL JARS ON ONE PRODUCTION LINE AT ITS SOUTH DEERFIELD MASS PLANT WORKERS SPENT HALF THE WEEK MAKING ONE PRODUCT AND HALF THE WEEK MAKING THE OTHER A PROCESS SO AWKWARD THAT DELIVERIES WERE CHRONICALLY LATE AND THE COMPANY'S MARKET SHARE SHRANK SO A FEW YEARS AGO HARDIGG SEPARATED THE OPERATIONS OUTFITTED A MORE MODERN BATTERYJAR PLANT IN COLUMBUS AND BEGAN INVOLVING WORKERS IN MORE DECISIONMAKINGEFFORTS THAT LATELY HAVE PAID OFF OVERALL BUSINESS IS BACK UP AND SO TOO IS THE COMPANY'S TOTAL EMPLOYMENT IMPROVED PRODUCTIVITY AND SOME JOB GROWTH IS EVIDENT AT COMPANIES BIG AND SMALL FOR A TIME BIOMET INC A MAKER OF ORTHOPEDIC IMPLANTS WASN'T DOING ANY HIRING AT ALL BUT THE COMPANY SAYS ITS COMPUTERASSISTED MANUFACTURING PROCESS RESULTED IN IMPROVED OUTPUT AND HIGHER PRODUCT QUALITY DEMAND GREW WHICH IN TURN PROMPTED BIOMET IN RECENT MONTHS TO ADD 50 EMPLOYEES TO ITS PRODUCTION LINE AND OTHER PARTS OF THE COMPANY SIMILARLY ADAPTEC INC WHICH MAKES MICROCOMPUTER PARTS IN CALIFORNIA'S SILICON VALLEY HAS BEEN ADDING WORKERS LATELY THANKS IN PART TO HIGHER PRODUCTIVITY THAT HAS HELPED THE COMPANY KEEP ITS PRICES COMPETITIVE IMPROVEMENTS ON THE PRODUCTION LINE AND A CONCURRENT ENGINEERING SYSTEM THAT MOVES PRODUCTS MORE QUICKLY FROM THE LABORATORY TO PRODUCTION HAVE OVER THREE YEARS CUT THE TIME NEEDED TO PRODUCE A NEW COMPUTER CHIP BY HALF THE ONLY WAY TO ATTRACT THE TOP PEOPLE AND PAY THEM WHAT THEY'RE WORTH IS BY GIVING THEM A CHANCE TO KEEP PRODUCTIVITY HIGH SAYS JOHN ADLER ADAPTEC'S CHAIRMAN WE TRY TO GET THE BEST EQUIPMENT FOR OUR ENGINEERS FOR EXAMPLE GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS ISN'T AS CONVINCED AS OTHER ECONOMISTS THAT GAINS IN PRODUCTIVITY EVENTUALLY LEAD TO ADDITIONAL HIRING ALBEIT FROM A LOWER TOTAL EMPLOYMENT BASE HE BELIEVES THE COMPANIES WITH THE BIGGEST PRODUCTIVITY GAINS WILL STAY INTENTLY FOCUSED ON IMPROVING PRODUCTIVITY FURTHER THAT MEANS THEY'LL BE MORE INCLINED TO CUT JOBS RATHER THAN HIRE MORE WORKERS PRODUCING WHAT HE CALLS A DAMPENING EFFECT ON MANUFACTURING EMPLOYMENT IN THE LONG TERM IN THE 19801982 ECONOMIC DOWNTURN HE NOTES MANUFACTURING LOST 26 MILLION JOBS BUT THE SECTOR RECOVERED ONE MILLION OF THOSE JOBS DURING THE REST OF THE DECADE AFTER THE BLOODLETTING IN THE MANUFACTURING RANKS IN THE PAST THREE YEARS EMPLOYMENT IN THE SECTOR IS NOW DOWN 32 MILLION JOBS FROM 1979 MR RICHARDS DOESN'T FORESEE ANYTHING CLOSE TO THE RECOVERY THAT OCCURRED IN THE 1980S THAT SAID A SIGNIFICANT NUMBER OF THE JOBS THAT ARE RECOVERED WILL RESULT FROM INCREASES IN PRODUCTIVITY INSISTS GAIL FOSLER CHIEF ECONOMIST OF THE CONFERENCE BOARD UNLIKE MR RICHARDS SHE FORESEES BOTH JOB GROWTH AND NEW FRONTIERS BEING REACHED IN MANUFACTURING PRODUCTIVITY NOTABLY SHE ADDS THE IMPROVEMENT IN PRODUCTIVITY IS LEADING TO THE CREATION OF JOBS THAT REQUIRE GREATER SKILLS AND THUS PAY HIGHER WAGES WHERE WE HAVE ALL THE PRODUCTIVITY IN MANUFACTURING IS WHERE WE HAVE ALL THE COMPENSATION GROWTH SAYS MS FOSLER FOR THE FIRST TIME WAGE GROWTH IN MANUFACTURING IS OUTPACING WAGE GROWTH IN SERVICES SHE BELIEVES THAT JOBS IN THE MANUFACTURING SECTOR WILL EMERGE AS SOME OF THE MOST DESIRABLE OF THE 1990S JOHN BUSSEY CONTRIBUTED TO THIS ARTICLE 9403010135 940301 FASTCOMM TO CLEAR BROKER ERROR STERLING VA FASTCOMM COMMUNICATIONS CORP SAID A STOCKBROKER INADVERTENTLY NOTIFIED THE SECURITIES AND EXCHANGE COMMISSION THAT A FASTCOMM EXECUTIVE PLANNED TO SELL SHARES IN THE COMPANY FASTCOMM SAID THE EXECUTIVE VICE PRESIDENT CHARLES DESLAURIER HAD PLACED HIS STOCK CERTIFICATES WITH THE BROKER FOR SAFE KEEPING ONLY THE BROKER MISTAKENLY NOTIFIED THE SEC THAT MR DESLAURIER PLANNED TO SELL STOCK FASTCOMM SAID A PROCEDURE REQUIRED WHEN A COMPANY INSIDER PLANS TO DISPOSE OF SECURITIES IN THE COMPANY THE TELECOMMUNICATIONSEQUIPMENT MAKER SAID MR DESLAURIER WOULD FILE AN AMENDMENT WITH THE SEC REVOKING THE ERRONEOUS FILING 9403010134 940301 INTERNATIONAL QUEBEC LEADER IS VISITING THE US TO MAKE A CASE FOR SECESSION BID BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA QUEBEC SEPARATIST LEADER LUCIEN BOUCHARD GOES TO WASHINGTON TOMORROW TO TELL AMERICANS NOT TO WORRY ABOUT HIS CAMPAIGN TO BREAK UP CANADA IT WILL BE MR BOUCHARD'S FIRST VISIT TO THE US SINCE HIS BLOC QUEBECOIS PARTY RECHARGED THE QUEBEC INDEPENDENCE MOVEMENT LAST OCTOBER BY CAPTURING 72 OF QUEBEC'S SEATS IN THE NATIONAL PARLIAMENT THE RESULT VAULTED MR BOUCHARD INTO THE POST OF OFFICIAL OPPOSITION LEADER IN THE FEDERAL PARLIAMENT A POSITION THAT GIVES HIM DAILY TELEVISION EXPOSURE FOR HIS SEPARATIST CAMPAIGN HE IS EXPECTED TO TELL MEMBERS OF CONGRESS AND DIPLOMATS THAT BOTH QUEBEC AND THE REST OF CANADA WILL BE BETTER OFF IF QUEBEC FINALLY SEPARATES AND ENDS GENERATIONS OF ONAGAINOFFAGAIN POLITICAL CRISES THE POLITICAL PROBLEM WITH CANADA IS QUEBEC AND THE PROBLEM OF QUEBEC IS CANADA HE SAYS AND HE WILL TELL HIS AUDIENCES THAT QUEBEC WILL BE A FREE TRADER THAT WELCOMES ITS US TIES AT LEAST AS MUCH AS CANADA DOES THE THING MR BOUCHARD MOST WANTS FROM THE US IS AUTOMATIC MEMBERSHIP FOR AN INDEPENDENT QUEBEC IN THE NORTH AMERICAN FREE TRADE AGREEMENT THAT LINKS CANADA MEXICO AND THE US QUEBEC WAS INSTRUMENTAL IN CONVINCING THE REST OF CANADA TO SIGN THE FREE TRADE TREATY HE NOTES AN INDEPENDENT QUEBEC WOULD BE A LARGELY FRENCHSPEAKING NATION BORDERING ON NEW YORK VERMONT NEW HAMPSHIRE AND MAINE IT WOULD BE TWICE THE SIZE OF TEXAS WITH AN ECONOMIC OUTPUT ABOUT EQUAL TO THAT OF MASSACHUSETTS IF THE SEPARATISTS WIN QUEBEC'S PROVINCIAL ELECTION THIS YEAR AS MANY ANALYSTS EXPECT THEY ARE CONTEMPLATING A QUICK REFERENDUM ON INDEPENDENCE WITH THE AIM OF PULLING THE PROVINCE OUT OF CANADA BY JUNE 1995 MR BOUCHARD WAS INVITED TO WASHINGTON BY THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES JOSEPH JOCKEL A CANADIAN SPECIALIST AT THE THINK TANK SAID THE INVITATION WAS EXTENDED TO GET BETTER ACQUAINTED WITH MR BOUCHARD IN CASE QUEBEC REALLY DOES BECOME INDEPENDENT THE CLINTON ADMINISTRATION ISN'T ROLLING OUT THE CARPET FOR THE VISITING SEPARATIST DURING HIS TWO DAYS IN WASHINGTON MR BOUCHARD IS SCHEDULED TO MEET FOR ABOUT 30 MINUTES WITH THE THIRDRANKING OFFICIAL AT THE STATE DEPARTMENT PETER TARNOFF UNDERSECRETARY FOR POLITICAL AFFAIRS IN RECENT YEARS LEADERS OF THE MAIN CANADIAN OPPOSITION PARTY HAVE USUALLY SEEN THE PRESIDENT WHEN THEY MADE A US VISIT MR BOUCHARD'S ITINERARY ALSO INCLUDES A MEETING WITH SEVERAL MEMBERS OF CONGRESS WHO FOLLOW CANADIAN AFFAIRS AND AN ADDRESS AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES TOMORROW MORNING THE US GOVERNMENT HAS STUDIOUSLY AVOIDED GETTING INVOLVED IN THE QUEBEC ISSUE US OFFICIALS HAVE A MANTRA THAT HAS BEEN HIGHLY SUCCESSFUL IN DEALING WITH QUESTIONS ON QUEBEC SAYS MR JOCKEL IT GOES LIKE THIS THE US HOPES THAT CANADA REMAINS UNITED HOWEVER THIS IS A MATTER TO BE DECIDED BY CANADIANS WITHOUT ANY FURTHER COMMENT OR INTERFERENCE ON THE PART OF THE US MR BOUCHARD IS A 55YEAROLD FORMER LAWYER DIPLOMAT AND CANADIAN CABINET MINISTER HE HAS A SOLEMN SPEAKING STYLE DRESSES CONSERVATIVELY AND RARELY CRACKS A JOKE HE QUIT THE GOVERNMENT OF FORMER PRIME MINISTER BRIAN MULRONEY IN 1990 WHEN IT BECAME APPARENT THAT QUEBEC WOULDN'T WIN MORE CONSTITUTIONAL AUTONOMY FROM CANADA'S DOMINANT ENGLISHSPEAKING PROVINCES MR BOUCHARD HAS TRIED TO DEMONSTRATE THAT AN INDEPENDENT QUEBEC WOULDN'T BE A CUBA OF THE NORTH HIS PARTY RECENTLY VOTED TO ALLOW A CONTINUATION OF US CRUISEMISSILE TESTS OVER NORTHERN CANADA A DECISION THAT WAS OPPOSED BY MANY CANADIANS BUT THE KEY EFFORT OF THE BLOC QUEBECOIS HAS BEEN TO USE ITS PARLIAMENTARY PLATFORM TO REMIND QUEBECERS OF THE SUPPOSED PENALTIES THEY PAY FOR BEING PART OF CANADA ALMOST EVERY DAY THE PARTY FINDS SOME SUCH ISSUE TO RAISE IN PARLIAMENT 9403010133 940301 ESKIMO PIE COMPLETES PURCHASE RICHMOND VA ESKIMO PIE CORP SAID IT ACQUIRED SUBSTANTIALLY ALL OF THE ASSETS OF FROZEN YOGURT MAKER SUGAR CREEK FOODS OF RUSSELLVILLE INC FOR 13 MILLION ESKIMO PIE MAKER OF THE ESKIMO PIE ICE CREAM BAR AND OTHER FROZEN NOVELTIES SAID IT WOULD PAY 92 MILLION IN CASH AND 38 MILLION IN 45 CONVERTIBLE SUBORDINATED DEBENTURES CONVERTIBLE INTO ESKIMO PIE COMMON STOCK AT 23375 A SHARE IN NASDAQ TRADING ESKIMO PIE CLOSED AT 1975 UP 25 CENTS SUGAR CREEK BASED IN RUSSELLVILLE ARK MAKES A VARIETY OF YOGURT FOR THE INSTITUTIONAL FOODSERVICE AND AWAYFROMHOME MARKETS PRELIMINARY RESULTS INDICATE THAT SUGAR CREEK HAD 1993 REVENUE OF 93 MILLION AND PRETAX PROFIT OF 21 MILLION 9403010132 940301 SPORTSTOWN TO POST A LOSS OF 3 MILLION FOR FISCAL 4TH PERIOD ATLANTA SPORTSTOWN INC BATTERED BY COMPETITION SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 3 MILLION FOR ITS FISCAL FOURTH QUARTER THE SPORTS RETAILER SAID IT HIRED DONALDSON LUFKIN & JENRETTE SECURITIES CORP TO DEVELOP ALTERNATIVES TO MAXIMIZE SHAREHOLDER VALUE ONE OPTION AN EXECUTIVE SAID YESTERDAY MAY BE TO SELL THE COMPANY SPORTSTOWN HAS POSTED A SERIES OF QUARTERLY LOSSES AND HAS SEEN ITS SHARE PRICE FALL 80 IN THE PAST 18 MONTHS IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET THE STOCK CLOSED AT 3625 DOWN 125 CENTS LATE FRIDAY SPORTSTOWN SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 5 MILLION FOR ITS YEAR ENDED JAN 30 SALES FOR THE YEAR THE COMPANY SAID JUMPED ABOUT 35 TO ABOUT 165 MILLION SAMESTORE SALES HOWEVER FELL 21 DURING THE YEAR IN THE FOURTH QUARTER ENDED JAN 30 1993 NET INCOME WAS 16 MILLION OR 33 CENTS A SHARE ON SALES OF 416 MILLION FOR THE FULL YEAR EARNINGS TOTALED 24 MILLION OR 52 CENTS A SHARE ON SALES OF 1219 MILLION WE'D BEEN MISSING OUR SALES PLANS BUT WE DIDN'T THINK IT WAS GOING TO BE LONGTERM LIKE THIS SAID CLYDE S FOSSUM CHIEF FINANCIAL OFFICER AS A RESULT HE SAID THE COMPANY WAS CHOKED LAST QUARTER BY EXCESS INVENTORY THAT IT HAD TO MARK DOWN AND CLEAR WITH EXPENSIVE PROMOTIONS THE COMPANY REPORTED A LOSS OF 17 MILLION OR 35 CENTS A SHARE FOR THE QUARTER ENDED LAST OCT 31 AND 500000 OR 10 CENTS A SHARE FOR THE QUARTER ENDED LAST JULY 31 AS OF LAST NOVEMBER THE COMPANY PROJECTED A PROFIT IN THE FOURTH QUARTER 9403010131 940301 BUSINESS BRIEF NORTHWEST AIR CHIEF AGREES TO GIVE BACK 750000 BONUS UNDER UNION PRESSURE ST PAUL MINN NORTHWEST AIRLINES' CHIEF EXECUTIVE OFFICER RESPONDING TO UNION PRESSURE SAID HE WILL RETURN A SPECIAL 750000 BONUS PAID BY THE COMPANY FOR RESTRUCTURING ITS FINANCES JOHN H DASBURG AGREED TO GIVE BACK THE ONETIME BONUS JUST AS MEMBERS OF THE MACHINISTS UNION AT NORTHWEST WERE PLANNING A RALLY YESTERDAY TO PROTEST THE PAYMENT THE RALLY WAS CANCELED ON NEWS OF MR DASBURG'S DECISION UNION OFFICIALS APPLAUDED MR DASBURG'S GESTURE AS SIGNIFICANT BUT CALLED ON HIM AND OTHER MEMBERS OF NORTHWEST'S MANAGEMENT TO GIVE UP THEIR ANNUAL BONUSES AS WELL NORTHWEST WHICH GAVE MANAGEMENT 23 MILLION IN INCENTIVEBASED BONUSES LAST YEAR DEFENDED THIS POLICY WE NEED TO KEEP GOOD PEOPLE HERE SAID A COMPANY SPOKESMAN WITH THE GOALS WE HAVE YOU NEED TO PAY SENSIBLE COMPENSATION ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MR DASBURG'S 1993 SALARY OF 463906 WAS TOPPED BY AN INCENTIVEBASED BONUS OF 450705 AND THE SPECIAL BONUS OF 750000 THE CHIEF EXECUTIVE SAID HE IS RETURNING THE SPECIAL BONUS TO PRESERVE TRUST BETWEEN THE AIRLINE'S MANAGEMENT AND WORKERS IT'S MORE IMPORTANT TO THIS AIRLINE TO ACCOMPLISH ITS GOALS THAN IT IS FOR ME TO HAVE ANOTHER 750000 SAID MR DASBURG LEADERSHIP HAS A PRICE AND SOMETIMES IT INCLUDES MY POCKETBOOK LAST SUMMER NORTHWEST'S EMPLOYEES AGREED TO 886 MILLION IN WAGE CUTS TO HELP PREVENT A THREATENED BANKRUPTCY FILING BY THE NATION'S FOURTHLARGEST AIRLINE IN EXCHANGE TOP OFFICERS TOOK SALARY REDUCTIONS OF NEARLY 20 AND EMPLOYEES INCLUDING MANAGERS RECEIVED A 342 STAKE IN THE COMPANY MR DASBURG'S GIVEBACK WAS THE RIGHT THING TO DO SAYS A SPOKESMAN FOR THE MACHINISTS UNION THOSE JUNIOR EXECUTIVES SHOULD DO THE SAME THING BUT I'M NOT HOLDING MY BREATH 9403010130 940301 GERMAN GROUP TO BUY UTILITIES BONN A CONSORTIUM INCLUDING GERMAN UTILITIES RWE AG PREUSSENELEKTRA AG AND BAYERNWERK AG WILL PAY EIGHT BILLION MARKS 465 BILLION FOR EASTERN GERMAN ELECTRICITY GENERATOR VEAG THE GERMAN GOVERNMENT SAID A SEPARATE CONSORTIUM ALSO INCLUDING RWE PREUSSENELEKTRA AND BAYERNWERK WILL PAY 21 BILLION MARKS FOR EASTERN GERMAN COAL PRODUCER LAUBAG THE SALE OF THE FORMERLY STATECONTROLLED COMPANIES TO WESTERN GERMAN BUYERS WAS AGREED ON AS EARLY AS 1990 IN A CONTRACT WITH THE THEN EAST GERMAN STATE BUT IT WAS HELD UP FOR YEARS BY A LONGSTANDING DISPUTE BETWEEN CONSORTIUM MEMBERS AND EASTERN GERMAN LOCAL AUTHORITIES 9403010129 940301 USBANCORP STOCK REPURCHASE JOHNSTOWN PA USBANCORP INC SAID ITS BOARD ADOPTED A STOCK REPURCHASE PROGRAM THROUGH WHICH THE COMPANY MAY REPURCHASE 237000 SHARES OR 5 OF ITS COMMON STOCK OVER THE NEXT 12 MONTHS THE BOARD AUTHORIZED A CASH OUTLAY OF 65 MILLION FOR THE REPURCHASE AT THE END OF 1993 USBANCORP HAD ABOUT 47 MILLION SHARES OF COMMON STOCK OUTSTANDING WITH THIS PROGRAM USBANCORP CAN REPURCHASE ITS COMMON STOCK IN OPEN MARKET TRANSACTIONS AT PREVAILING PRICES OR IN PRIVATELY NEGOTIATED TRANSACTIONS 9403010127 940301 MCI TO ACQUIRE 17 OF NEXTEL A CELLULAR FIRM PURCHASE FOR 13 BILLION TO FUEL RACE TO BUILD NATIONWIDE NETWORKS BY JOHN J KELLER AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP AGREED TO PAY 13 BILLION FOR A 17 STAKE IN WIRELESSSERVICE PROVIDER NEXTEL COMMUNICATIONS INC CHALLENGING RIVAL EFFORTS BY AT&T AND THE BABY BELLS TO CREATE NATIONAL CELLULARTELEPHONE SERVICE MCI HAS SCRAMBLED TO FIND A CELLULAR PARTNER EVER SINCE AMERICAN TELEPHONE & TELEGRAPH CO MOVED LAST YEAR TO ACQUIRE MCCAW CELLULAR COMMUNICATIONS CORP NOW MCI HOPES IT CAN HELP NEXTEL A FAR SMALLER RIVAL BUILD A NATIONWIDE DIGITAL CELLULAR NETWORK IN TWO YEARS ONE THAT CONCEIVABLY COULD SURPASS EVEN THE REACH OF INDUSTRY LEADER MCCAW NEXTEL WHICH CONTROLS A FEDERATION OF RADIODISPATCH SERVICES THAT IT HOPES TO TRANSFORM INTO FULLFLEDGED CELLULARTELEPHONE SERVICE HOPES TO USE MCI'S SUBSTANTIAL MARKETING MUSCLE TO SELL CONSUMERS ON A NATIONWIDE SERVICE UNDER THE MCI BRAND NAME TOGETHER THEY PLAN TO OFFER EACH CUSTOMER ONE TELEPHONE NUMBER AT WHICH THEY CAN BE REACHED NO MATTER WHERE THEY ARE ON ANY GIVEN DAY THEY ALSO PLAN TO OFFER TWOWAY PAGING SERVICES VOICE MAIL AND OTHER FEATURES ALL TO BE DELIVERED TO A LITTLE RADIO PHONE THAT IS LIGHTER THAN TODAY'S CELLULAR MODELS NEXTEL CAN BE FOR MCI'S WIRELESS BUSINESS WHAT FRIENDS & FAMILY HAS BEEN FOR ITS LONGDISTANCE OPERATIONS SAID MORGAN O'BRIEN CHAIRMAN OF NEXTEL BUT MCI'S ALLCASH BET FACES A DAUNTING MARKETING AND FINANCIAL CHALLENGE MCI IS PAYING TOP DOLLAR FOR ITS STAKE MORE THAN DOUBLE THE PRICE THAT ANOTHER PART OWNER COMCAST CORP PAID LESS THAN TWO YEARS AGO THE LONGDISTANCE MARKETER HAD REJECTED THE CHANCE TO INVEST A MERE 40 MILLION TO 50 MILLION FOR A SIZABLE STAKE IN NEXTEL BACK IN 1988 UNDER ITS AGREEMENT ANNOUNCED YESTERDAY MCI IS OFFERING CASH IN FOUR INSTALLMENTS OVER FOUR YEARS FOR A 17 STAKE IN NEXTEL THE FIRST PAYMENT FOR 800 MILLION WILL COME THIS YEAR AT A PRICE OF 36 A SHARE FOR 22 MILLION SHARES YESTERDAY NEXTEL SHARES SURGED ALMOST 15 TO 4425 UP 5625 ON VOLUME OF 42 MILLION SHARES IN TRADING ON THE NASDAQ STOCK MARKET MCI HAS AGREED TO BUY DURING THE NEXT THREE YEARS FIVE MILLION SHARES ANNUALLY AT 37 38 AND 39 A SHARE RESPECTIVELY FOR ITS MONEY MCI JOINS AN ENVIABLE COTERIE OF PARTNERS IN THE TINY WIRELESS COMPANY COMCAST OWNS 175 OF NEXTEL AND IS ALSO A MAJOR OPERATOR OF CELLULARPHONE SERVICES MOTOROLA INC THE WORLD'S LARGEST RADIOEQUIPMENT SUPPLIER IS CLOSE TO OBTAINING A 20 STAKE IN NEXTEL THROUGH NEXTEL STOCK VALUED AT ABOUT 18 BILLION IN RETURN FOR THE SPECIALIZED MOBILE RADIO LICENSES IT OWNS IN NUMEROUS US MARKETS ANOTHER BIG NEXTEL HOLDER IS JAPAN'S POWERHOUSE TELEPHONE COMPANY NIPPON TELEGRAPH & TELEPHONE CORP BUT MCI MUST TACKLE FAR BIGGER COMMUNICATIONS PLAYERS BY REBUILDING A NEXTEL NETWORK THAT NOW SERVES AS A TWOWAY RADIO SERVICE FOR TAXI DRIVERS PLUMBERS AND THE LIKE FROM ITS BASE IN RUTHERFORD NJ NEXTEL HAS BEEN RACING TO ACQUIRE SMALL SPECIALIZED MOBILE RADIO OPERATORS AND REBUILD AN AGING TWOWAY RADIO NETWORK INTO A NATIONWIDE DIGITAL PHONE AND DATA SYSTEM SO FAR IT OFFERS NEW DIGITAL PHONE SERVICE IN ONLY ONE US MARKET LOS ANGELES TOGETHER THE MCINEXTELCOMCAST AXIS PLANS TO OFFER SERVICES TO NEXTEL'S LICENSED SERVICE REGIONS COVERING 45 OF THE TOP 50 US METROPOLITAN MARKETS AND 180 MILLION POTENTIAL CUSTOMERS THE TEAM PLANS TO BUILD A NATIONAL NETWORK AT A COST OF MORE THAN 25 BILLION TO PROVIDE A STATEOFTHEART DIGITAL PHONE AND DATA SERVICE THAT'S CLEARER AND MORE POWERFUL THAN CURRENT CELLULAR SYSTEMS MOST OF WHICH USE OLDER ANALOG RADIO TECHNOLOGY BUT THAT'S ALSO WHAT AT&TMCCAW AND THE BELLS WANT TO DO MCCAW WAS AN EARLY WIRELESSPHONE PIONEER AND HAS THE MARKETING SAVVY AND TECHNICAL SMARTS TO SMACK MCINEXTEL BEFORE IT GETS STARTED MOREOVER THE NEW MCINEXTEL TEAM WILL HAVE TO CONTEND WITH CHANGES IN THE TELECOMMUNICATIONS INDUSTRY ALLIANCES BETWEEN BABY BELLS AND CABLE COMPANIES WERE THROWN FOR A LOOP LAST WEEK WHEN THE MEGADEAL BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC CRASHED AT&T IS STILL WADING THROUGH REGULATORY WATERS TO PUSH THROUGH ITS 176 BILLION ACQUISITION OF MCCAW AND THE OUTLOOK IS UNCERTAIN FOR THE MASSIVE AUCTION OF LICENSES FOR A RIVAL NEW CELLULAR TECHNOLOGY KNOWN AS PCS OR PERSONAL COMMUNICATIONS SERVICES THE DEAL ALSO IS DRAWING FIRE FROM THE BABY BELLS WHICH HAVE STRUGGLED TO MARKET A JOINT NATIONAL CELLULAR SERVICE OF THEIR OWN AND THAT WANT TO WIN THE RIGHT TO ENTER THE LONGDISTANCE MARKET I WAS AMAZED AT THE AMOUNT OF PUFFERY IN THE MCINEXTEL ANNOUNCEMENT SAID JOHN STUPKA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL CORP'S CELLULAR UNIT ADDING THAT THE BELLS PLAN TO MARKET THEIR CELLULAR SERVICES UNDER A SINGLE BRAND NAME BY THE END OF THIS YEAR BUT THAT WOULD MOSTLY USE ANALOG TECHNOLOGY WHICH IS LESS POWERFUL AND LESS EFFICIENT THAN DIGITAL BELL ATLANTIC PUT OUT A STATEMENT CONTENDING THE MCI DEAL UNDERSCORES THE NEED FOR FREEING THE BELLS FROM FEDERAL RESTRAINTS ON LONGDISTANCE EFFORTS FAVORING MCI IS THE LOOSER REGULATORY CONSTRAINTS IT ENJOYS VERSUS ITS LARGER RIVAL AT&T WHILE AT&T STILL MUST JUMP THROUGH JUSTICE DEPARTMENT AND FEDERAL COURT HOOPS TO COMPLETE ITS MCCAW DEAL MCINEXTEL CAN BUILD NOW AND MARKET TO CUSTOMERS CRAVING POCKETPHONES RIGHT AWAY STILL NEXTEL HAS A LONG WAY TO GO BEFORE IT CAN CHALLENGE AT&TMCCAW AND OTHERS IN ALL MARKETS NEXTEL WAS FOUNDED IN 1987 BY MR O'BRIEN A FORMER FEDERAL COMMUNICATIONS COMMISSION LAWYER AND BRIAN MCCAULEY A CPA AND FORMER CHIEF FINANCIAL OFFICER OF MILLICOM INC THEY SAW A CHANCE TO TURN THEIR FCC CONTACTS AND PREVIOUSLY PRIVATEDISPATCH RADIO SERVICES INTO A NEW PHONE OFFERING THAT COULD COMPETE WITH CELLULAR BUT WHEN MESSRS O'BRIEN AND MCCAULEY APPROACHED MCI ABOUT FIVE YEARS AGO FOR A 40 MILLION TO 50 MILLION CASH INVESTMENT A DEAL THAT WOULD HAVE BEEN WORTH HUNDREDS OF MILLIONS OF DOLLARS TODAY MCI RESPONDED THAT WIRELESS OPERATIONS DIDN'T FIT IN WITH ITS PLANS INDEED MCI HAD JUST SOLD OFF ITS CELLULAR BUSINESS TO MCCAW IRONICALLY ARCHRIVAL AT&T NOW PLANS TO USE THOSE OPERATIONS AS A CLUB AGAINST MCI MCI REENTERED TALKS TO BUY A NEXTEL STAKE TWO MONTHS AGO AT THE URGING OF RALPH ROBERTS COMCAST'S CHAIRMAN AND HIS SON BRIAN COMCAST'S PRESIDENT THE TWO VISITED BERT C ROBERTS JR NO RELATION MCI'S CHAIRMAN FIGURING THAT MCI'S PCS PLANS WERE GOING NOWHERE AND THAT MCI MIGHT RECONSIDER AN INVESTMENT IN THEIR HOT PROPERTY BRIAN ROBERTS SAID YESTERDAY THAT WHILE COMCAST'S ORIGINAL 200 MILLION INVESTMENT IN NEXTEL HAD GROWN INTO ABOUT 13 BILLION DURING THE PAST 18 MONTHS THERE WAS STILL PLENTY OF ROOM FOR MCI TO DRAW A HUGE FINANCIAL WINDFALL FROM THE COMPANY CONVINCED MCI'S MR ROBERTS GAVE HIS NOD TO THE DEAL LAST WEEK AND IT WAS FINALLY SIGNED ON SATURDAY MCI DECIDED IT WAS BETTER TO FORGO WAITING FOR THE NEBULOUS PCS FUTURE PARTICULARLY WHEN ITS REQUEST FOR A NATIONWIDE PCS LICENSE WAS DENIED BY THE FCC WHILE MCI STILL INTENDS TO BID FOR PCS LICENSES IN TERRITORIES WHERE IT NEEDS WIRELESSRADIO COVERAGE THE COMPANY NO LONGER REGARDS PCS AS THE VEHICLE THROUGH WHICH MCI WILL OFFER NATIONAL SERVICES BERT ROBERTS SAID NEXTEL IS THAT VEHICLE AT&T AND MCCAW WHICH EXPECT TO CLOSE THEIR DEAL BY THIS SUMMER WILL MARKET UNDER THE OMNIPOTENT AT&T BRAND THEY ALSO WILL BE ABLE TO EXPLOIT AT&T'S BILLIONDOLLAR ADVERTISING BUDGET AND THE TECHNICAL SMARTS OF BELL LABORATORIES ASSETS THAT OUTSTRIP THE SIZE AND STRENGTH OF MCI'S NEW PARTNER 9403010126 940301 ASHLAND OIL'S UNIT SALE ASHLAND KY ASHLAND OIL INC SAID IT COMPLETED THE SALE OF ITS APACARIZONA INC HIGHWAY CONSTRUCTION UNIT TO KIEWIT CONSTRUCTION GROUP INC A UNIT OF PETER KIEWIT SONS' INC OF OMAHA NEB TERMS WEREN'T DISCLOSED 9403010125 940301 REVIEW & OUTLOOK EDITORIAL ASIDES REINVENTING THE DIAL IF YOU CALL MANY FEDERAL AGENCIES YOU'VE PROBABLY NOTICED THAT A CONSIDERABLE NUMBER HAVE CHANGED THEIR WASHINGTON PHONE NUMBERS IN THE PAST COUPLE OF YEARS THE RECORDING YOU GET DOESN'T TELL YOU THE NEW NUMBER LET ALONE CONNECT YOU WHICH DOESN'T WARM YOU TO THE BUREAUCRACY WE'RE CURIOUS HOWEVER WHY DOES AN ORGANIZATION THAT SUPPOSEDLY ISN'T GROWING NEED NEW PHONE EXCHANGES SO OFTEN 9403010124 940301 ECONOMY BUILDING AWARDS HOLDING STEADY DODGE SURVEY SAYS BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONSTRUCTION CONTRACTING IN JANUARY HELD STEADY WITH DECEMBER'S PACE AS A LAGGARD HOUSING MARKET WAS OFFSET BY MODEST GAINS IN CONSTRUCTION OTHER THAN RESIDENCES AND BUILDINGS AN FW DODGE SURVEY REPORTED THE REPORT SAID THE DODGE INDEX STOOD AT 103 UNCHANGED FROM DECEMBER'S REVISED LEVELS THE INDEX MEASURES THE SEASONALLY ADJUSTED RATE OF TOTAL CONSTRUCTION USING THE AVERAGE MONTHLY RATE THAT OCCURRED IN 1987 AS A BASE OF 100 IN THE PAST 12 MONTHS THE INDEX REACHED A HIGH OF 109 IN OCTOBER BUT HAS SINCE EXPERIENCED MILD EROSION IN FALLING TO ITS CURRENT LEVELS THE REPORT SAID ON AN UNADJUSTED BASIS JANUARY'S CONSTRUCTION CONTRACTING VOLUME TOTALED 1717 BILLION DOWN 1 FROM A YEAR AGO THE RECENT STEPS BACKWARD ARE NOT YET TROUBLING SINCE A SURGE OF ACTIVITY IS OFTEN FOLLOWED BY A PERIOD OF CONSOLIDATION IN WHICH THE INDUSTRY CATCHES ITS BREATH SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC THERE'S A POSITIVE SIDE TO JANUARY'S DATA A VARIETY OF STRUCTURE TYPES WERE ABLE TO PICK UP THE SLACK FOR HOUSING ADVERSELY AFFECTED BY THE MONTH'S HARSH WINTER WEATHER HE ADDED THIS KIND OF BROADER PARTICIPATION IS JUST WHAT IS REQUIRED TO KEEP THE CONSTRUCTION RECOVERY GOING THIS YEAR RESIDENTIAL CONSTRUCTION IN JANUARY SLID 3 RETREATING FROM A ROBUST VOLUME REPORTED AT THE END OF 1993 LARGELY BECAUSE OF A 5 DECLINE IN SINGLEFAMILY HOUSING THE DEPRESSED MULTIFAMILY SIDE IMPROVED SLIGHTLY TO OFFER SOME SUPPORT NONBUILDING CONSTRUCTION EDGED UP 2 LAST MONTH SHOWING SLIGHT IMPROVEMENT FROM DECEMBER'S LACKLUSTER PERFORMANCE WITHIN THIS CATEGORY PUBLIC WORKS REMAINED STABLE AS STRONGER TOTALS FOR HIGHWAYS AND WATERRESOURCE PROJECTS BALANCED LOWER CONTRACTING FOR BRIDGES AND SEWERS THE UTILITY SEGMENT STOOD AT 25 BILLION UP FROM DECEMBER'S 1 BILLION JANUARY'S TOTALS FOR THIS SEGMENT HOWEVER REMAIN SIGNIFICANTLY BELOW LEVELS SHOWN OVER THE PAST FIVE YEARS 9403010123 940301 FORD MOTOR'S CHINA UNIT DEARBORN MICH FORD MOTOR CO SAID IT FORMED A CHINA UNIT TO MANAGE ALL OF THE COMPANY'S BUSINESS NEGOTIATIONS RELATING TO PARTS AND VEHICLEMANUFACTURING FORD NAMED JAMES J PAULSEN FORMERLY MANAGER OF FORD'S PLASTIC AND TRIM PRODUCTS DIVISION AS PRESIDENT OF THE FORD CHINA OPERATIONS 9403010122 940301 ROCK STARS RAISED POLYGRAM'S PROFIT BY 21 LAST YEAR BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL REFLECTING THE STRENGTH OF THE GLOBAL MUSIC BUSINESS LAST YEAR POLYGRAM NV SAID 1993 EARNINGS CLIMBED 21 ON A REVENUE GAIN OF 12 LED BY THE PERFORMANCE OF SUCH ARTISTS AS STING AND BRYAN ADAMS THE LONDONBASED MUSIC AND FILM COMPANY ALSO ANNOUNCED A PROPOSED 15 INCREASE IN THE 1993 DIVIDEND FROM THE 1992 PAYOUT OF 335 CENTS A SHARE THE PROPOSED INCREASE SUBJECT TO SHAREHOLDER APPROVAL WILL BE PAID ON MAY 24 TO SHAREHOLDERS OF RECORD MAY 6 THE RESULTS SURPRISED INVESTORS WHO DROVE UP THE COMPANY'S STOCK 2125 TO 40375 ON THE NEW YORK STOCK EXCHANGE A TOTAL OF 132000 SHARES TRADED HANDS YESTERDAY ABOUT THREE TIMES NORMAL DAILY VOLUME THE COMPANY EARNED 316 MILLION ON SALES OF 382 BILLION FOR THE YEAR ENDED DEC 31 COMPARED WITH EARNINGS OF 262 MILLION ON SALES OF 341 BILLION IN 1992 PERSHARE EARNINGS ROSE 19 TO 183 FROM 154 A YEAR EARLIER POLYGRAM WHICH IS 75OWNED BY DUTCH CONSUMER ELECTRONICS GIANT PHILIPS ELECTRONICS NV SAID NORTH AMERICAN OPERATING PROFIT DOUBLED IN 1993 IF THERE ARE ANY SURPRISES FOR ANALYSTS IT'S THE FACT THAT ALL OF OUR FINANCIAL RATIOS ARE NOW POINTED IN THE RIGHT DIRECTION SAID ALAIN LEVY POLYGRAM'S PRESIDENT AND CHIEF EXECUTIVE MR LEVY NOTED THAT POLYGRAM'S NORTH AMERICAN NET INCOME BENEFITED FROM TAXLOSS CARRYFORWARDS ACCRUED IN THE US IN EARLIER YEARS THE COMPANY'S REVENUE GAINS WERE LED BY A 13 INCREASE IN POP MUSIC INCLUDING 30 RECORD ALBUMS THAT SOLD MORE THAN ONE MILLION COPIES EACH TOP PERFORMERS INCLUDED SO FAR SO GOOD BY BRYAN ADAMS WHICH SOLD NEARLY SEVEN MILLION COPIES WORLDWIDE IN SIX WEEKS POP MUSIC ACCOUNTED FOR 69 OF THE COMPANY'S REVENUE LAST YEAR CLASSICAL MUSIC SALES WERE FLAT IN 1993 REFLECTING MAJOR PRICECUTTING NONETHELESS POLYGRAM'S THREE MAJOR LABELS DECCA/LONDON DEUTSCHE GRAMMOPHON AND PHILIPS CLASSICS CONTRIBUTED 12 OF TOTAL REVENUE THE COMPANY'S FASTESTGROWING DIVISION WAS FILMED ENTERTAINMENT WHERE REVENUE JUMPED 23 IN 1993 THE MOVIE POSSE A BLACK WESTERN RELEASED BY GRAMERCY PICTURES POLYGRAM'S NORTH AMERICAN DISTRIBUTION JOINT VENTURE WITH UNIVERSAL PICTURES GROSSED OVER 18 MILLION AND SHIPPED MORE THAN 200000 VIDEOCASSETTES IN SEPTEMBER POLYGRAM ACQUIRED THE BLACK MUSIC COMPANY MOTOWN FOR 301 MILLION AND SOLD 10 MILLION NEW SHARES AT 34 EACH THIS RAISED POLYGRAM'S TOTAL CAPITALIZATION TO 180 MILLION SHARES 9403010121 940301 NEW YORK UNIVERSITY IS GIVEN HUGE GIFT OF LAND ART VILLAS LATE HISTORIAN HAROLD ACTON DONATED TUSCAN ESTATE VALUE IS HARD TO CALCULATE BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SIR HAROLD ACTON THE BRITISH AESTHETE AND HISTORIAN HAS BEQUEATHED HIS ESTATE IN TUSCANY AS WELL AS ART AND CASH TO NEW YORK UNIVERSITY IN WHAT THE SCHOOL SAID IS THE MOST MAGNIFICENT AND PROBABLY THE BIGGEST SINGLE GIFT EVER GIVEN A US UNIVERSITY NYU PRESIDENT L JAY OLIVA SAID HE COULDN'T PLACE A PRECISE VALUE ON THE UNIQUE GIFT WHICH INCLUDES LAND VILLAS AND ART COLLECTIONS BUT HE SAID HE WAS CONFIDENT THE VALUE WOULD BE MULTIPLES OF THE BIGGEST GIFT TO DATE ACCORDING TO THE CHRONICLE OF HIGHER EDUCATION THE LARGEST SINGLE PRIVATE GIFT TO A UNIVERSITY WAS 125 MILLION DONATED IN 1981 TO LOUISIANA STATE UNIVERSITY PHILANTHROPIST WALTER ANNENBERG HAS GIVEN HUNDREDS OF MILLIONS OF DOLLARS TO EDUCATION INCLUDING 120 MILLION EACH TO THE UNIVERSITY OF PENNSYLVANIA AND THE UNIVERSITY OF SOUTHERN CALIFORNIA LAST YEAR HE MADE HEADLINES BY PLEDGING 500 MILLION FOR PUBLIC EDUCATION AND DONATING 100 MILLION TO THE PEDDIE SCHOOL A HIGHTSTOWN NJ PREP SCHOOL HE ATTENDED AMONG OTHER THINGS NYU SAID THE GIFT WILL ENHANCE ITS PLANS TO BECOME A GLOBAL UNIVERSITY AND SPEED ITS EFFORTS TO HAVE EVERY UNDERGRADUATE SPEND A SEMESTER ABROAD NYU SAID IT PLANS TO ADD FLORENCE TO ITS OVERSEAS STUDY PROGRAMS IN DOZENS OF OTHER FOREIGN LOCATIONS SIR HAROLD WHO WAS 89 YEARS OLD DIED FEB 27 AT LA PIETRA HIS ESTATE AND BIRTHPLACE JUST OUTSIDE OF FLORENCE THAT WAS A MEETING PLACE FOR INTERNATIONAL ART POLITICAL AND LITERARY FIGURES THE PROPERTY INCLUDES FIVE VILLAS ON 57 ACRES OF OLIVE GROVES AND GARDENS MR OLIVA SAID SIR HAROLD'S TIES TO THE UNIVERSITY IN NEW YORK'S GREENWICH VILLAGE STRETCH BACK ABOUT 30 YEARS TO FRIENDSHIPS MADE WITH ARTS FACULTY MEMBERS IN 1983 SIR HAROLD SAID HE INTENDED TO DONATE THE VILLA TO NYU WITH THE WISH THAT THE SCHOOL WOULD HOLD INTERNATIONAL ART SEMINARS THERE IN 1991 NYU HELPED START A GLOBAL NETWORK OF URBAN UNIVERSITIES WHOSE RECTORS MET AT LA PIETRA IN JANUARY IN EXPLAINING THE APPRAISAL PUZZLE SIR HAROLD'S GIFT REPRESENTS MR OLIVA DREW A NEW YORK CITY PARALLEL SUPPOSE SOMEBODY SAID THEY WERE GOING TO GIVE YOU 50 ACRES OF CENTRAL PARK AND IT HAS FIVE BEAUTIFULLY MAINTAINED VILLAS ON IT BESIDES SIR HAROLD'S HOME A 60ROOM BAROQUE COUNTRY HOUSE FILLED WITH ART THE ESTATE INCLUDES FOUR OTHER RENAISSANCE AND BAROQUE VILLAS OVERLOOKING FLORENCE THE DONATED ART COLLECTIONS WHICH NYU SAID WILL BE KEPT INTACT INCLUDE 15THCENTURY FLEMISH TAPESTRIES WOVEN FOR THE MEDICIS ROMANESQUE SCULPTURES AND A DONATELLO RELIEF OF THE VIRGIN AND CHILD THE WORKS ALSO INCLUDE A COLLECTION OF CHINESE ART ASSEMBLED BY SIR HAROLD WHEN HE LIVED IN CHINA BEFORE WORLD WAR II 9403010120 940301 FEDERATED'S NET INCREASED 47 IN FISCAL 4TH PERIOD BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE QUARTER ENDED JAN 29 FEDERATED REPORTED THAT NET INCOME TOTALED 146 MILLION OR 116 A SHARE COMPARED WITH 99 MILLION OR 78 CENTS A SHARE IN THE YEARAGO PERIOD FEDERATED'S GAIN WAS ONLY SLIGHTLY LESS FOR THE QUARTER BEFORE A ONETIME 61 MILLION OR FIVE CENTS A SHARE CHARGE RELATED TO EARLY RETIREMENT OF DEBT RECORDED IN THE YEAREARLIER PERIOD FEDERATED'S RESULTS WERE MODESTLY BETTER THAN EXPECTED BY ANALYSTS WHO TOOK NOTE OF EFFORTS TO REIN IN EXPENSES AND CUT OPERATING COSTS IN YESTERDAY'S TRADING ON THE NEW YORK STOCK EXCHANGE FEDERATED SHARES CLOSED AT 23875 DOWN 50 CENTS CINCINNATIBASED FEDERATED WHICH OPERATES 219 DEPARTMENT STORES IN 26 STATES UNDER THE NAMES OF ABRAHAM & STRAUS BLOOMINGDALE'S AND BURDINES AMONG OTHERS SHOWED HEALTHY GAINS IN STORE SALES SALES FOR THE QUARTER GREW 38 TO 235 BILLION FROM 226 BILLION A YEAR EARLIER COMPARABLESTORE SALES A KEY INDICATOR OF SALES FROM STORES OPEN AT LEAST A YEAR ROSE 21 IN THE FOURTH QUARTER ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE SAID PROFIT EXCEEDED EXPECTATIONS FOR THE QUARTER AS DID SALES AND EXPENSE CONTROLS THE COMPANY SAID OPERATING EXPENSES AS A PERCENTAGE OF SALES DROPPED TO 321 IN THE FISCAL YEAR ENDED IN JANUARY FROM 342 IN FISCAL 1992 AND 355 IN FISCAL 1991 MR QUESTROM SAID FEDERATED IN 1994 WOULD EMPHASIZE INCREASING SALES GROWTH AND REDUCING EXPENSES FURTHER BY WAY OF EXPANDED APPLICATIONS OF TECHNOLOGY THROUGHOUT THE COMPANY FOR THE FISCAL YEAR ENDED JAN 29 FEDERATED'S NET INCOME INCLUDING CHARGES RELATED TO THE PREPAYMENT OF LONGTERM DEBT IN BOTH FISCAL YEARS ROSE 71 TO 1932 MILLION OR 153 A SHARE COMPARED WITH 1130 MILLION OR 101 A SHARE FOR THE FISCAL YEAR ENDED IN JANUARY 1993 HOWEVER FEDERATED'S PROFIT BEFORE CHARGES GREW LESS ABOUT 48 FOR THE FISCAL YEAR ENDED JAN 29 FEDERATED'S EARNINGS BEFORE CHARGES TOTALED 1968 MILLION OR 156 A SHARE COMPARED WITH THE YEAREARLIER PROFIT BEFORE CHARGES OF 1327 MILLION OR 119 A SHARE SALES FOR THE FISCAL YEAR GREW 21 TO 723 BILLION FROM 708 BILLION FOR THE YEAR ENDED IN 1993 FEDERATED'S SAMESTORE SALES FOR THE FISCAL YEAR ROSE 19 9403010118 940301 GORE RECRUITS EXECUTIVES FOR SEMICONDUCTOR DRIVE WASHINGTON VICE PRESIDENT AL GORE IS ENLISTING CORPORATE EXECUTIVES TO PUBLICIZE GOVERNMENT PROGRAMS AIMED AT BOOSTING THE SEMICONDUCTOR INDUSTRY ALTHOUGH A NEWS BRIEFING SCHEDULED TOMORROW IS BEING BILLED AS A NEW PARTNERSHIP BETWEEN GOVERNMENT AND INDUSTRY MOST OF THE INITIATIVES TO BE DISCUSSED HAVE BEEN INTRODUCED PREVIOUSLY IN ONE NEW PROGRAM MR GORE IS EXPECTED TO ANNOUNCE THAT THE COMMERCE DEPARTMENT IS PLANNING TO ESTABLISH A METROLOGY CENTER AT THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY TO CONSOLIDATE GOVERNMENT RESEARCH INTO SEMICONDUCTOR MEASUREMENTS MR GORE ALSO IS EXPECTED TO LAY OUT DETAILS ABOUT THE SEMICONDUCTOR TECHNOLOGY COUNCIL A GROUP THAT WAS INCLUDED IN THE DEFENSE DEPARTMENT'S AUTHORIZATION BILL THIS PAST FALL THE COUNCIL IS SUPPOSED TO PUSH FOR GOVERNMENT FUNDING OF PARTS OF A TECHNOLOGY ROAD MAP LAID OUT LAST YEAR BY THE SEMICONDUCTOR INDUSTRY ASSOCIATION A TRADE GROUP DESPITE INDUSTRY URGING HOWEVER MR GORE ISN'T EXPECTED TO NAME INDUSTRY MEMBERS FOR THE COUNCIL BECAUSE OF DELAYS IN THE SELECTION PROCESS COUNCIL MEMBERS FROM THE GOVERNMENT HAVE BEEN DESIGNATED BY LAW MR GORE WHO IS TO BE JOINED BY COMMERCE SECRETARY RON BROWN AND OFFICIALS FROM THE PENTAGON AND THE ENVIRONMENTAL PROTECTION AGENCY IS PLANNING TO EMPHASIZE THE ROLE OF THE SEMICONDUCTOR INDUSTRY IN BUILDING THE SOCALLED INFORMATION SUPERHIGHWAY 9403010117 940301 CLINTON GOES TO CHICAGO TO BOOST ROSTENKOWSKI CHICAGO IN AN EXTRAORDINARY EFFORT TO BOOST REP DAN ROSTENKOWSKI'S PRECARIOUS REELECTION PROSPECTS PRESIDENT CLINTON BRAVED THE COLD AND SNOW HERE TO DECLARE THAT THE ADMINISTRATION'S TOP LEGISLATIVE PRIORITIES WERE BOUND UP IN THE LAWMAKER'S FATE MR CLINTON WAS AMPLIFYING WHAT THE ILLINOIS DEMOCRAT HAS BEEN TELLING HIS CONSTITUENTS THAT HE IS AN IMPORTANT NATIONAL LEADER WHO SHOULD BE RETURNED TO WASHINGTON DESPITE HIS RECENT BRUSHES WITH THE LAW THE PRESIDENT MADE CLEAR THAT MR ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE WAS PIVOTAL TO HIS TWO BIGGEST INITIATIVES THIS YEAR OVERHAULING THE HEALTHCARE AND WELFARE SYSTEMS WITHOUT HIM MR CLINTON SAID WE WOULD NOT BE ABLE TO DO THE THINGS THAT WE HAVE TO DO TO MEET OUR OBLIGATIONS TO THE FUTURE IN THIS COMING YEAR IN HEALTH CARE WELFARE REFORM AND MANY OTHER AREAS IN OTHER CIRCUMSTANCES SUCH GLOWING WORDS WOULD CONSTITUTE AN ENDORSEMENT AND IN EVERY PRACTICAL SENSE THEY WERE BUT MR CLINTON DIDN'T ACTUALLY USE THE WORD ENDORSEMENT AND DIDN'T DIRECTLY REFER TO THE MARCH 15 PRIMARY AT WHICH MR ROSTENKOWSKI'S SEAT IS BEING SOUGHT BY OTHER DEMOCRATS FOR ONE THING IT IS RARE FOR A PRESIDENT TO INTERVENE IN A PARTY PRIMARY CONTEST FOR ANOTHER MR ROSTENKOWSKI IS UNDER INVESTIGATION BY MR CLINTON'S OWN JUSTICE DEPARTMENT FOR POSSIBLE MISUSE OF HIS CONGRESSIONAL AND CAMPAIGN FUNDS 9403010116 940301 KMART'S LOSSES IN QUARTER YEAR REFLECT CHARGES FISCAL 4THPERIOD DEFICIT IS WIDER THAN EXPECTED APPAREL SOLD WEAKLY BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP CLOBBERED BY CHARGES AND A FAILURE TO REV UP ITS APPAREL SALES REPORTED A LARGERTHANEXPECTED FISCAL FOURTHQUARTER LOSS AND A LOSS FOR THE YEAR FOR THE QUARTER ENDED JAN 26 KMART POSTED A NET LOSS OF 119 BILLION OR 261 A SHARE COMPARED WITH NET INCOME OF 535 MILLION OR 115 A SHARE A YEAR EARLIER SALES ROSE 87 TO 1027 BILLION FROM 944 BILLION THE LATEST RESULTS INCLUDE A PREVIOUSLY REPORTED AFTERTAX CHARGE OF 862 MILLION MAINLY TO ALTER KMART'S HALFFINISHED AND SO FAR DISAPPOINTING 35 BILLION STORERESTRUCTURING PLAN KMART NOW WILL REPLACE 500 OF ITS 2324 DISCOUNT STORES ORIGINALLY SLATED FOR RENOVATION ONLY WITH LARGER STORES KMART ALSO TOOK A 503 MILLION CHARGE RELATED TO THE PLANNED SALE OF PAYLESS DRUGSTORE CHAIN TO BE COMPLETED THIS MONTH AND THE 1993 SALE OF ITS PACE MEMBERSHIP WAREHOUSE UNIT TO WALMART STORES INC EVEN WITHOUT THE CHARGES HOWEVER THE NATION'S NO 2 RETAILER SAW ITS NET FROM CONTINUING OPERATIONS DROP 50 TO 247 MILLION OR 53 CENTS A SHARE FROM THE RESTATED YEAREARLIER 501 MILLION OR 107 A SHARE THE FOURTHQUARTER RESULTS CAPPED THREE CONSECUTIVE QUARTERS OF EARNINGS DECLINES IN FISCAL 1994 THE TROY MICH DISCOUNTER IS LOSING MARKET SHARE TO NO 1 RETAILER WALMART AS WELL AS CATEGORY KILLERS LIKE TOYS R US AND ATTEMPTS TO DISTINGUISH ITSELF BY OFFERING APPAREL WITH A MORE UPSCALE FEEL HAVEN'T WORKED INSTEAD CUSTOMERS ARE BYPASSING KMART'S APPAREL DEPARTMENTS AND BUYING LOWERMARGIN GOODS FOR THE HOME LIKE TOOLS CLEARLY MANAGEMENT'S 1994 STRATEGY OF FOCUSING ON THE UPPER PRICEPOINT TIER IN APPAREL MIX VS ITS TRADITIONAL MODERATE AND PROMOTIONAL TIERS BOMBED SAID ANALYST THOMAS TASHJIAN OF FIRST MANHATTAN HE SAID HE EXPECTS KMART TO ALTER THAT STRATEGY THIS YEAR BY SELLING MOREBASIC APPAREL KMART HAS MADE DRAMATIC MOVES IN THE LAST YEAR TO BOOST EARNINGS AND APPEASE SHAREHOLDERS PRIMARILY THE COMPANY EMPHASIZED THAT IT INTENDS TO SELL ALL OR PARTS OF ITS SPECIALTYSTORE UNITS WHICH SHOULD HELP KMART FOCUS ON ITS FALTERING CORE DISCOUNT STORES BUT WALL STREET APPARENTLY REMAINS SKEPTICAL KMART'S STOCK WAS UNCHANGED AT 19 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NEAR THE 52WEEK LOW OF 1875 FOR THE YEAR KMART POSTED A NET LOSS OF 974 MILLION OR 215 A SHARE COMPARED WITH NET INCOME OF 941 MILLION OR 206 A SHARE A YEAR EARLIER IN ADDITION TO CHARGES RELATED TO THE RESTRUCTURING AND SALE OF TWO UNITS THE LATESTYEAR RESULTS INCLUDED CHARGES OF 28 MILLION FOR EARLY DEBT REDEMPTION AND 34 MILLION FOR ACCOUNTING CHANGES SALES ROSE 10 TO 3416 BILLION FROM 3103 BILLION KMART BLAMED MUCH OF THE PROFIT SHORTFALL ON A SHRINKING GROSS MARGIN WHICH NARROWED TO 249 OF SALES FOR ALL OF THE JUSTENDED FISCAL YEAR FROM 265 THE YEAR EARLIER THE DECLINE RESULTED FROM KMART'S BIG MARKDOWNS ON APPAREL AND ITS DEFERRALS AND CANCELLATIONS OF ORDERS TO CONTROL BLOATED INVENTORIES THE COMPANY SAID BECAUSE LOWER INVENTORY LEVELS ESPECIALLY OF HIGHERMARGIN SLOWMOVING GOODS ARE LONG OVERDUE ANALYST JEFFREY EDELMAN OF CJ LAWRENCE CALLED THE MOVES A LONGTERM POSITIVE WITH INVENTORIES IN LINE HE SAID KMART CAN BETTER USE ITS COMPUTERIZED SYSTEMS TO AUTOMATICALLY REPLENISH THE GOODS AS THEY ARE SOLD THERE IS TREMENDOUS REALIZATION THAT KMART HAS TO EXECUTE BETTER THE COMPANY IS PUSHING THE URGENCY BUTTON MR EDELMAN SAID 9403010115 940301 DEVELOPERS DIVERSIFIED PURCHASES CLEVELAND DEVELOPERS DIVERSIFIED REALTY CORP SAID IT ACQUIRED TWO SHOPPING CENTERS FOR 178 MILLION THE REALESTATE INVESTMENT TRUST SAID ONE SHOPPING CENTER LOCATED IN ATLANTA WAS PURCHASED FROM PLEASANT HILL PLAZA LP OF ATLANTA AND THE OTHER LOCATED IN AHOSKIE NC WAS SOLD BY TWO CONCERNS AHOSKIE COMMONS LP AND AHOSKIE MARKET PLACE LP THE ASSETS PURCHASED CONTAIN A TOTAL OF 407482 SQUARE FEET DEVELOPERS DIVERSIFIED ACQUIRES DEVELOPS OWNS LEASES AND MANAGES SHOPPING CENTERS AND BUSINESS CENTERS 9403010114 940301 NUMAC PLANS CASH STOCK BID TO BUY COENERCO BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL CALGARY ALBERTA NUMAC ENERGY INC IN A BID TO ACCELERATE ITS GROWTH OF OIL AND GAS ASSETS SAID IT PLANS TO OFFER CASH AND NEW SHARES TO ACQUIRE COENERCO RESOURCES LTD IN A TRANSACTION VALUED AT ABOUT 2365 MILLION CANADIAN DOLLARS US175 MILLION COENERCO SAID ITS BOARD APPOINTED A SPECIAL COMMITTEE TO REVIEW ANY TAKEOVER BIDS UNLESS THE BID IS APPROVED BY THE COENERCO BOARD IT COULD TRIGGER A POISON PILL THAT WOULD COMPLICATE A TAKEOVER ATTEMPT THE COMPANY SAID ANALYSTS SAID THEY BELIEVE THE BID WHICH VALUES EACH COENERCO SHARE AT C784 US580 BASED ON THE CURRENT MARKET PRICE IS TOO LOW CONSIDERING THAT THE SHARES TRADED AS HIGH AS C1450 LAST SUMMER IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY NUMAC CLOSED AT 6125 DOWN 375 CENTS OR 58 COENERCO CLOSED ON THE TORONTO STOCK EXCHANGE AT C7375 UP C150 UNDER TERMS OF THE PROPOSED BID NUMAC WOULD ISSUE AS MANY AS 289 MILLION COMMON SHARES REPRESENTING 31 OF ITS CURRENT SHARE CAPITAL THIS WOULD REDUCE THE OWNERSHIP STAKE OF NUMAC'S MAJOR SHAREHOLDER A GROUP OF HONG KONG INVESTORS TO AS LOW AS 54 FROM 69 NOW NUMAC SAID WE HAVE A FAIRLY STRONG MANDATE FROM OUR SHAREHOLDERS TO GROW THE COMPANY SAID IRVINE KOOP NUMAC PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID THE COMPANY AIMS TO INCREASE ITS CASH FLOW TO A LEVEL SUFFICIENT TO FUND ITS BUDDING INTERNATIONAL OPERATIONS NUMAC HAS OWNERSHIP INTERESTS IN ENERGY DEPOSITS IN LIBYA AND INDONESIA WHICH COULD BEGIN PRODUCTION BY 1997 UNDER TERMS OF THE PROPOSED BID NUMAC WOULD EXCHANGE EITHER 095 NEW SHARE OR C250 IN CASH AND 065 NEW SHARE FOR EACH OF COENERCO'S 238 MILLION SHARES OUTSTANDING HOLDERS OF COENERCO'S C50 MILLION OF CONVERTIBLE DEBENTURES ALSO COULD CHOOSE EITHER CASH OR NEW NUMAC SHARES NUMAC ALSO WOULD ASSUME ABOUT C50 MILLION OF COENERCO BANK DEBT BOTH COMPANIES ARE BASED IN CALGARY NUMAC SAID THE PROPOSED BID WOULD BE CONDITIONAL AMONG OTHER THINGS ON ITS NOT TRIGGERING COENERCO'S SHAREHOLDER RIGHTS PLAN A KIND OF POISON PILL THAT ALLOWS EXISTING HOLDERS TO BUY NEW SHARES AT A DISCOUNT WHEN AN UNWANTED TAKEOVER IS ATTEMPTED 9403010112 940301 ECONOMY AETNA'S LOSS FROM EARTHQUAKE STORMS SUGGESTS TOTAL FOR INDUSTRY COULD RISE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN AETNA LIFE & CASUALTY CO SAID ITS LOSSES FROM THE LOS ANGELES EARTHQUAKE AND WINTER STORMS WOULD TOTAL 120 MILLION OR WELL ABOVE ANALYSTS' EXPECTATIONS SUGGESTING THE INSURANCE INDUSTRY IS SUSTAINING HEAVIER LOSSES ON THIS YEAR'S DISASTERS THAN FIRST PROJECTED MOST OTHER MAJOR COMPANIES HAVE ALREADY GIVEN INITIAL ESTIMATES OF EARTHQUAKE LOSSES AND A TRADE GROUP THE AMERICAN INSURANCE SERVICES GROUP HAS PUT THE INDUSTRY TOTAL AT ABOUT 25 BILLION BUT THE EXPECTED LOSS AT AETNA WHICH HAS A RELATIVELY SMALL SHARE OF THE CALIFORNIA MARKET INDICATES THE INDUSTRY COULD END UP WITH MORE THAN 3 BILLION IN LOSSES WESTON HICKS A STOCK ANALYST AT SANFORD C BERNSTEIN & CO SAID OTHER INSURERS MIGHT REVISE THEIR NUMBERS UPWARD AS THEY GET MORE INFORMATION ON THEIR CLAIMS STATE FARM MUTUAL AUTOMOBILE INSURANCE CO AND FARMERS INSURANCE GROUP A UNIT OF BA T INDUSTRIES PLC HAVE REPORTED THE HIGHEST NUMBER OF CLAIMS FROM THE EARTHQUAKE WITH EACH EXPECTING 600 MILLION IN LOSSES MR HICKS SAID WINTERSTORM LOSSES COULD ALSO RISE IN THE WEEKS AHEAD THE INSURANCE INDUSTRY SO FAR HAS LOST 825 MILLION ON THE STORMS ACCORDING TO THE TRADE GROUP AETNA WHICH HADN'T GIVEN ANY ESTIMATES BEFORE SAID THE COMPANY WILL INCUR AN 80 MILLION LOSS FROM THE EARTHQUAKE AND A 40 MILLION LOSS FROM WINTER STORMS MR HICKS FOR ONE HAD ESTIMATED AETNA'S TOTAL LOSSES FROM THE DISASTERS AT 60 MILLION OR HALF OF WHAT AETNA IS NOW PREDICTING AETNA'S COMBINED LOSSES WILL REDUCE FIRSTQUARTER NET INCOME BY 120 MILLION OR 107 A SHARE BY COMPARISON AETNA EARNED 166 MILLION OR 151 A SHARE IN LAST YEAR'S FIRST QUARTER AETNA'S CHAIRMAN RONALD COMPTON SAID LOSSES FROM THE EARTHQUAKE AND STORMS WOULD REDUCE THE COMPANY'S 1994 OPERATING EARNINGS 13 TO 565 FROM THE 650 A SHARE HE FORECAST TWO WEEKS AGO LAST YEAR AETNA POSTED A LOSS OF 607 A SHARE OUR 1994 EARNINGS FORECAST DID NOT CONTEMPLATE LOSSES OF THIS MAGNITUDE WITHIN THE FIRST TWO MONTHS OF THE YEAR MR COMPTON SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AETNA FELL 2125 OR 34 TO 60 A SHARE STOCKS OF OTHER PROPERTY AND CASUALTY INSURERS WERE DOWN SLIGHTLY BAD TIMING FOR AETNA THE INCREASED LOSSES COME AT A PARTICULARLY BAD TIME FOR AETNA WHICH IS STILL STRUGGLING TO TURN ITSELF AROUND THE INSURER RECENTLY ANNOUNCED PLANS TO LAY OFF 4000 WORKERS AND GET OUT OF TWO PENSIONRELATED BUSINESSES THE RESTRUCTURING WAS ACCOMPANIED BY A 128 BILLION CHARGE AT YEAR END AETNA'S LOSSES SHOW HOW INSURANCE COMPANIES ARE MORE EXPOSED TO CATASTROPHES THAN THEY WERE WHEN HURRICANE ANDREW HIT IN AUGUST 1992 THAT DISASTER WHICH COST THE INSURANCE INDUSTRY 165 BILLION DROVE UP RATES FOR REINSURANCE WHICH IS HOW INSURERS SPREAD THEIR RISKS AMONG EACH OTHER THE HIGHER RATES FORCED MANY INSURERS TO REDUCE THE AMOUNT OF REINSURANCE THEY CARRIED LEAVING THEM MORE VULNERABLE TO LOSSES THE INDUSTRY IS MUCH MORE EXPOSED NOWADAYS MR HICKS SAID MR HICKS SAID THE INDUSTRY COULD LOSE A RECORD 5 BILLION ON CATASTROPHES IN THE FIRST QUARTER HE SAID THE LOSSES COUPLED WITH RISING INTEREST RATES COULD PROMPT HIGHER INSURANCE PREMIUMS THE PRICE OF COMMERCIAL COVERAGE HAS BEEN FALLING FOR SEVEN YEARS IN INTENSE COMPETITION WHICH IN TURN HAS LED TO SLUGGISH PROFITS FOR THE INSURANCE INDUSTRY 9403010111 940301 LAW JUSTICES TO RULE ON CONSTITUTIONALITY OF FEDERAL CHILDPORNOGRAPHY STATUTE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER THE FEDERAL STATUTE BARRING CHILD PORNOGRAPHY VIOLATES THE FIRST AMENDMENT'S FREESPEECH GUARANTEE THE CASE HINGES ON WHETHER COURTS MAY INTERPRET A TECHNICALLY FLAWED STATUTE SO AS TO MAKE IT ENFORCEABLE A LOWER COURT RULED THAT THE CHILDPORN LAW IS UNCONSTITUTIONAL BECAUSE ITS SOMEWHAT AMBIGUOUS LANGUAGE DOESN'T CLEARLY REQUIRE THAT PROSECUTORS PROVE SOMEONE WHO DISTRIBUTED OR RECEIVED THE PORNOGRAPHIC MATERIAL WAS AWARE THAT IT DEPICTED A PERSON UNDER AGE 18 THE JUSTICE DEPARTMENT APPEALED THE DEPARTMENT WARNED THAT THE RULING BY THE US APPEALS COURT FOR THE NINTH CIRCUIT WHICH INCLUDES CALIFORNIA AND NEVADA WILL MAKE IT DIFFICULT TO BRING CHILDPORN CASES IN LOS ANGELES AND LAS VEGAS WHERE A LARGE AMOUNT OF PORNOGRAPHY IS PRODUCED THE APPEAL WAS SUPPORTED BY PRIVATE ANTIPORNOGRAPHY GROUPS THAT HAVE ACCUSED THE CLINTON ADMINISTRATION OF BEING INSUFFICIENTLY AGGRESSIVE IN PROSECUTING CHILD PORNOGRAPHY THE STATUTE AT ISSUE PROHIBITS TRANSPORTATION OR RECEIPT OF MATERIAL DEPICTING A MINOR ENGAGING IN SEXUALLY EXPLICIT CONDUCT BUT THE SAN FRANCISCOBASED APPEALS COURT REVERSED THE CONVICTION OF A LOS ANGELES PORNOGRAPHY DISTRIBUTOR SAYING THE STATUTE AS WRITTEN DOESN'T ACTUALLY REQUIRE PROOF THAT THE DEFENDANT KNEW AT LEAST ONE PERFORMER WAS YOUNGER THAN 18 THE APPEALS COURT SAID THAT THE FIRST AMENDMENT REQUIRES THAT THE DEFENDANT CAN ONLY BE FOUND GUILTY IF HE HAS SUCH KNOWLEDGE WHILE ACKNOWLEDGING THAT THE LOWERCOURT INTERPRETATION MAY HAVE BEEN TECHNICALLY CORRECT THE JUSTICE DEPARTMENT ASSERTED THAT CONGRESS MUST HAVE INTENDED THE STATUTE TO INCLUDE THE KNOWLEDGE STANDARD REQUIRED BY THE FIRST AMENDMENT US VS XCITEMENT VIDEO INC THE SUPREME COURT AGREED TO DECIDE WHETHER A PUBLISHINGINDUSTRY UNION MAY CARVE OUT A SEPARATE BARGAINING UNIT CONSISTING EXCLUSIVELY OF A PRINTER'S PRESSROOM EMPLOYEES THE JUSTICES WILL HEAR THE APPEAL OF A TOLEDO OHIO ADVERTISING PUBLISHER THAT OBJECTED TO A NATIONAL LABOR RELATIONS BOARD RULING THAT FAVORED A UNION SEEKING TO REPRESENT A SEPARATE BARGAINING UNIT OF ABOUT 40 PRESSROOM EMPLOYEES THE COMPANY ARGUED IN ITS APPEAL THAT THE NLRB WITHOUT JUSTIFICATION DEPARTED FROM ITS TRADITIONAL POLICY OF OPPOSING THE DIVISION OF A SINGLE LITHOGRAPHIC WORK FORCE INTO SEPARATE UNITS EMPLOYERS SOMETIMES RESIST MULTIPLE BARGAINING UNITS BECAUSE OF THE DIFFICULTY OF DEALING WITH MULTIPLE UNIONS NTA GRAPHICS INC VS 9403010110 940301 MCDERMOTT UNIT ACQUIRES FIRM NEW ORLEANS MCDERMOTT INTERNATIONAL INC SAID A UNIT ACQUIRED NORTHERN OCEAN SERVICES LTD A UNIT OF CABLE & WIRELESS PLC OF LONDON TERMS WEREN'T DISCLOSED MCDERMOTT INTERNATIONAL AN ENERGY SERVICES COMPANY SAID THE ACQUISITION BY ITS LONDONBASED MCDERMOTT MARINE CONSTRUCTION STRENGTHENS MCDERMOTT INTERNATIONAL'S POSITION IN THE SUBSEA MARKETS OF THE OFFSHORE OIL AND NATURAL GAS INDUSTRY NORTHERN OCEAN SERVICES IS A CONTRACTOR THAT INSTALLS PIPELINES ON THE OCEAN FLOOR 9403010109 940301 MORRISON KNUDSEN IN MEXICO BOISE IDAHO MORRISON KNUDSEN CORP SAID IT JOINED WITH FINSA GRUPO ARGUELLES OF MEXICO TO FORM A NEW COMPANY MKFINSA TO PROVIDE ENGINEERING AND CONSTRUCTION SERVICES TO AUTOMOTIVE FOOD AEROSPACE AND MANUFACTURING INDUSTRIES IN MEXICO SEPARATELY THE COMPANY SAID THAT HUGHES AIRCRAFT CO THE BAY AREA RAPID TRANSIT BART DISTRICT OF SAN FRANCISCO AND MORRISON KNUDSEN WERE AWARDED 195 MILLION IN DEFENSE CONVERSION FUNDS AS PART OF THE CLINTON ADMINISTRATION'S TECHNOLOGY REINVESTMENT PROJECT THE TEAM WILL DEVELOP AN ADVANCED AUTOMATED TRAIN CONTROL SYSTEM TO BE INSTALLED AND TESTED ON BART'S SUBWAY CARS MORRISON KNUDSEN SAID 9403010108 940301 YOUR MONEY MATTERS FIXED ANNUITIES ARE GAINING POPULARITY AND IT PAYS TO KNOW THEIR COMPLEXITIES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL SURE INTEREST RATES HAVE BEEN RISING A BIT RECENTLY BUT YIELDS ON MONEY FUNDS AND CERTIFICATES OF DEPOSIT REMIND MANY INDIVIDUAL INVESTORS OF THE TITLES OF OLD TELEVISION SHOWS LIKE VOYAGE TO THE BOTTOM OF THE SEA AND DEATH VALLEY DAYS MEANWHILE GIVEN THE JITTERS IN THE STOCK AND BOND MARKETS THE PROSPECT OF TRYING FOR A HIGHER RETURN BY ACCEPTING GREATER RISK SEEMS LIKE A JOURNEY INTO THE TWILIGHT ZONE WHAT'S A CONSERVATIVE INVESTOR TO DO MORE AND MORE PEOPLE THESE DAYS ARE TRYING TO FIND A WAY OUT BY TUNING INTO OLDFASHIONED FIXEDRATE ANNUITIES THERE'S NO MARKET RISK NO PRINCIPAL RISK AND RETURNS ARE HIGHER THAN ON CDS OR MONEY FUNDS WHILE THE AVERAGE ONEYEAR CD HAS A YIELD OF 310 THE TYPICAL FIXEDRATE ANNUITY IS PAYING 510 TAXDEFERRED FIXEDRATE ANNUITIES ARE INSURANCE CONTRACTS DESIGNED AS RETIREMENT PLANS THAT WORK LIKE A CROSS BETWEEN A CD AND A NONDEDUCTIBLE INDIVIDUAL RETIREMENT ACCOUNT AS WITH A CD INVESTORS GET A FIXED RATE OF RETURN GUARANTEED FOR A SET PERIOD TYPICALLY ONE YEAR AFTER THAT THE RATE IS RESET PERIODICALLY USUALLY EVERY YEAR SOMETIMES QUARTERLY TO REFLECT CHANGES IN INTEREST RATES IF RATES HAVE FALLEN YOUR RETURN MAY ALSO FALL ALTHOUGH MOST COMPANIES GUARANTEE THE RATE WON'T GO BELOW A FLOOR OF 35 TO 4 IF RATES RISE THE NEW RATE YOU EARN WILL ALSO RISE FOR CONSERVATIVE INVESTORS WHO ARE ABLE TO LEAVE THEIR MONEY IN PLACE FOR YEARS ANNUITIES MAY MAKE SENSE BUT IT'S CRUCIAL TO KNOW WHAT TO LOOK FOR AND HOW TO AVOID BAIT AND SWITCH ANNUITIES THAT LURE YOU IN WITH A HIGH RATE LOCK YOU IN WITH STEEP SURRENDER PENALTIES THEN DROP THE RATE SHARPLY WHEN IT'S TOO LATE TO GET OUT ALL ANNUITIES ARE ISSUED BY INSURANCE COMPANIES THOUGH MANY ARE SOLD BY BROKERAGE FIRMS AND BANKS AS WELL AS INSURANCE AGENTS SINGLEPREMIUM ANNUITIES ARE INTENDED FOR INVESTORS WHO WANT TO MAKE A ONETIME PAYMENT FLEXIBLE ANNUITIES ARE ACCOUNTS YOU CAN ADD TO AT ANY TIME IN GENERAL SINGLEPREMIUM ANNUITIES TEND TO PAY SLIGHTLY HIGHER RATES AND TO HAVE HIGHER MINIMUMS LONGER GUARANTEE PERIODS AND SHORTER SURRENDER PERIODS KEEP IN MIND THAT ANNUITIES DON'T HAVE FEDERALDEPOSIT INSURANCE THIS MEANS IT'S CRUCIAL TO BUY THEM FROM COMPANIES THAT HAVE TOP RATINGS FOR FINANCIAL SOUNDNESS FROM THE MAJOR RATINGS AGENCIES AM BEST DUFF & PHELPS MOODY'S INVESTORS SERVICE STANDARD & POOR'S AND WEISS RESEARCH ANNUITIES ALSO DIFFER FROM CDS IN ANOTHER CRUCIAL WAY WHEN A CD MATURES YOU CAN TAKE THE MONEY OUT IF YOU DON'T LIKE THE NEW RATE BUT YOU CAN'T JUST MOVE YOUR MONEY OUT OF AN ANNUITY IN ADDITION TO TAXES AND PENALTIES ANNUITIES HAVE BACKEND SALES CHARGES CALLED SURRENDER PENALTIES THAT ARE TYPICALLY AT 7 OF YOUR ACCOUNT BALANCE IN THE FIRST YEAR AND REMAIN AS HIGH AS 5 BY THE FIFTH YEAR ANNUITY SALESMEN LIKE TO POINT OUT THAT YOU CAN TAKE OUT AS MUCH AS 10 OF YOUR BALANCE EACH YEAR WITHOUT SURRENDER PENALTIES WHILE THIS MAY APPEAL TO PEOPLE WHO ARE WITHDRAWING THE INCOME FOR LIVING EXPENSES IT ISN'T AS GREAT A DEAL AS IT SOUNDS YOU'LL STILL PAY INCOME TAXES ON THE ENTIRE WITHDRAWAL PLUS A 10 PENALTY IF YOU'RE UNDER AGE 59 1/2 THESE COULD PARE DOWN A 1000 WITHDRAWAL TO 570 ASSUMING A COMBINED TAX RATE OF 33 AND A 10 PENALTY IT'S ALSO CRUCIAL THAT YOU WATCH OUT FOR ANOTHER TYPE OF SURRENDER PENALTY AN INCREASING NUMBER OF COMPANIES ARE TACKING ON AN EXTRA EARLYWITHDRAWAL CHARGE CALLED A MARKETVALUE ADJUSTMENT OR MVA IN EFFECT THE COMPANY RETROACTIVELY CREDITS YOUR ACCOUNT WITH A LOWER RATE THIS PROTECTS THE INSURER IF INTEREST RATES SPIKE UPWARD AND INVESTORS BAIL OUT FORCING THE INSURER TO SELL ITS LONGERTERM BONDS AT A TIME WHEN THEIR PRICES ARE DROPPING BUT PROTECTION FOR INSURERS TRANSLATES INTO PRINCIPAL RISK FOR INVESTORS WHO TAKE THEIR MONEY OUT EARLY THE MAIN REASON PEOPLE TRY TO FLEE EARLY IS THAT THE RATE THEY'RE GETTING DROPS GLENN DAILY AN INSURANCE CONSULTANT IN NEW YORK STUDIED ANNUITY ILLUSTRATIONS AND FOUND THAT OF CONTRACTS THAT PAID THE HIGHEST RATES INITIALLY TWOTHIRDS HAD FALLEN TO BELOWAVERAGE RATES AFTER THE RENEWAL PERIOD COMPANIES MOST LIKELY TO DROP THEIR RATES STEEPLY ARE THOSE THAT OFFER UNUSUALLY HIGH FIRSTYEAR RATES HAVE UNUSUALLY LONG SURRENDER PERIODS OR BOTH MR DAILY SAYS TO AVOID THIS PROBLEM ASK TO SEE THE INSURER'S RENEWALRATE HISTORY A SALESPERSON WHO IS UNWILLING TO PROVIDE YOU WITH ONE OR WON'T EXPLAIN IT MIGHT NOT BE WORTH DOING BUSINESS WITH LOOK FOR A COMPANY THAT HAS A HISTORY OF PAYING NEW INVESTORS THE SAME RATE AS OLDER INVESTORS AND COMPANIES THAT HAVE A HISTORY OF FAIRLY MIRRORING THE SHIFTS IN INTEREST RATES MANY ANNUITIES OFFER FIRSTYEAR BONUS RATES THAT ADD ONE TO 1 1/2 PERCENTAGE POINTS TO THE BASE RATE MAKE SURE YOU SUBTRACT THESE WHEN YOU ANTICIPATE WHAT YOUR RENEWAL RATE WILL BE WHEN BUYING BE AWARE THAT ALTHOUGH ANNUITIES HAVE NO UPFRONT SALES FEES BROKERS AND INSURANCE AGENTS EARN COMMISSIONS SELLING THEM SOME PRODUCTS HAVE COMMISSIONS AS LOW AS 3 BUT MOST ANNUITIES SOLD TODAY PAY COMMISSIONS OF 5 TO 6 THE COMMISSIONS ARE TAKEN FROM SURRENDER CHARGES AND FROM THE SPREAD BETWEEN WHAT THE INSURANCE COMPANY EARNS WHEN IT INVESTS YOUR MONEY AND WHAT IT PAYS YOU WHICH IS GENERALLY A DIFFERENCE OF TWO PERCENTAGE POINTS A YEAR YOU CAN BUY SOME ANNUITIES THAT DON'T HAVE COMMISSIONS THESE PASS ALONG THE SAVINGS IN COMMISSIONS TO THE INVESTOR JOHN ALDEN'S PIONEER SIMPLY REDIRECTS THE AGENT'S COMMISSION BACK TO THE BUYER IN THE FORM OF A 4 CASH BONUS ON THE MONEY DEPOSITED IN THE FIRST FOUR YEARS IT'S DISTRIBUTED BY FEEONLY FINANCIAL PLANNERS INCLUDING THOSE CONNECTED WITH FEE FOR SERVICE 8008745662 USAA LIFE'S FIXED ANNUITY CAN BE BOUGHT DIRECTLY FROM THE COMPANY 8005318000 THE COMMISSION SAVINGS ARE REFLECTED IN THE UNUSUALLY SHORT SURRENDER PERIOD ONLY FIVE YEARS AND UNUSUALLY LOW SURRENDER CHARGES THESE START AT 7 AND DROP TO 1 BY YEAR FIVE PEOPLE WHO WANT A LARGE SELECTION OF GOOD QUALITY ANNUITIES CAN CALL INDEPENDENT ADVANTAGE 8008292887 A LOS ANGELES FIRM THAT PROVIDES A LIST OF FIVE OR SO TOPRATED ANNUITIES AVAILABLE IN THE CALLER'S STATE AND ARRANGES THE SALE THERE'S NO CHARGE FOR THE SERVICE SINCE THE COMPANY IS PAID A COMMISSION FROM WHATEVER COMPANY THE CONSUMER BUYS AN ANNUITY FROM ANNUITY SHOPPER IN ENGLISHTOWN NJ 8008726684 PROVIDES A SIMILAR SERVICE SELECTED ANNUITIES FROM COMPANIES WITH STRONG CREDIT RATINGS AND GOOD RENEWALRATE HISTORIES THAT OFFER CURRENT INTEREST RATES THAT AREN'T SUSPICIOUSLY HIGH 9403010107 940301 MONDAY'S MARKETS BONDS GAIN BUT STOCKS END MIXED TREASURY'S LONG ISSUE ADVANCES 5/8 POINT DOLLAR SHOWS DECLINE BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL BOND PRICES RALLIED RECOVERING A FRACTION OF THE BIG LOSSES OF RECENT WEEKS STOCKS WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 676 POINTS TO 383202 STANDARD & POOR'S 500STOCK INDEX ROSE 107 TO 46714 THE NASDAQ COMPOSITE INDEX CLIMBED 872 TO 79250 LED BY A SHARP REBOUND IN COMMUNICATIONS STOCKS ANALYSTS SAID THE BOND MARKET WAS DUE TO BOUNCE BACK BUT NOT FOR A SUSTAINED RECOVERY THE RALLY PUSHED THE LONGTERM BOND YIELD TO 665 FROM 671 FRIDAY THAT'S STILL FAR ABOVE THE 631 THE LONG BOND YIELDED JUST BEFORE THE FEDERAL RESERVE BOARD BOOSTED SHORTTERM INTEREST RATES ON FEB 4 WE'RE IN A TYPICAL CYCLICAL BEAR MARKET FOR BONDS WITH THE ECONOMY GROWING AND THE FEDERAL RESERVE RAISING RATES SAID JAMES M SNYDER DIRECTOR OF FIXEDINCOME MANAGEMENT AT NORTHERN TRUST CO IN CHICAGO THE INDUSTRIAL AVERAGE WAS UP FOR MOST OF THE DAY BUT FADED IN LATE TRADING LEADING THE DECLINE WAS PHILIP MORRIS WHICH SANK 2 TO 56 ON FEARS OF INCREASED REGULATION OF THE TOBACCO INDUSTRY WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO NOTED THAT THE INDUSTRIAL AVERAGE IS NOW UNDERPERFORMING THE BROADER MARKET THE CORRECTION IS HITTING THE DOW A LITTLE HARDER BECAUSE THE DOW HAD BEEN OUTPACING THE BROADER MARKET HE SAID OVERSEAS MARKETS PROVIDED SOME UNDERLYING STRENGTH TO US STOCKS AFTER A DISMAL PERFORMANCE LAST WEEK EUROPEAN BOND MARKETS RALLIED AND STOCK MARKETS IN LONDON PARIS AND FRANKFURT CLIMBED 14 TO 18 GERMANY'S CENTRAL BANK MADE TECHNICAL CHANGES IN THE WAY IT WILL SET MONEY MARKET INTEREST RATES A MOVE INVESTORS INTERPRETED AS AUGURING LOWER RATES THROUGHOUT EUROPE BUT NICHOLAS STEVENSON A EUROPEAN EQUITY STRATEGIST AT SG WARBURG & CO SAID HE THINKS EUROPE'S BOND PRICES ARE HEADED DOWN HE WARNED THAT SWISS STOCKS WHICH FELL 18 COULD BE A HARBINGER FOR EUROPE'S STOCK MARKETS SWITZERLAND CUT INTEREST RATES FIRST AND HAD A BULL MARKET FIRST HE SAID MAYBE THEY'RE THE FIRST ONES TO FADE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 102 TO 11674 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2674 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1457 ISSUES ROSE AND 727 FELL BONDS ROSE THE TREASURY'S BENCHMARK 30YEAR BOND ROSE 5/8 POINT OR 625 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17041 MARKS AND 10450 YEN COMPARED WITH 17100 MARKS AND 10485 YEN FRIDAY 9403010106 940301 INDUSTRY FOCUS MCI'S ENTRY ADDS NEW DIMENSION TO WIRELESS RACE MARKETING MUSCLE NOT TECHNOLOGY COULD BE THE DETERMINING FACTOR BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP'S NEW PUSH INTO THE WIRELESS MARKET WILL PROD A SLEW OF RIVALS TO QUICKLY DECIDE WHICH TECHNOLOGICAL APPROACH TO TAKE IN THE COMING FREEFORALL FOR WIRELESS CUSTOMERS AND WHILE INDUSTRY INSIDERS MAY DEBATE THE ARCANE COMPARISONS OF THE RIVAL WIRELESS APPROACHES THAT ARE EMERGING IN THE END SHEER MARKETING MUSCLE MAY DETERMINE THE WINNER THAT NOTION APPEARED TO BE PART OF THE MOTIVATION BEHIND YESTERDAY'S ANNOUNCEMENT THAT MCI WILL SPEND 13 BILLION FOR A 17 STAKE IN WIRELESS UPSTART NEXTEL COMMUNICATIONS INC MCI'S MOVE AND THE EFFORT BY AMERICAN TELEPHONE & TELEGRAPH CO TO PUSH THROUGH ITS 176 BILLION ACQUISITION OF CELLULAR POWERHOUSE MCCAW CELLULAR COMMUNICATIONS CORP WILL FORCE OTHER RIVALS TO RESPOND QUICKLY THE SEVEN BABY BELLS GTE CORP SPRINT CORP AND OTHERS MUST DEVELOP WIRELESS STRATEGIES PICK WHICH TECHNOLOGY TO ADOPT AND SET THEIR MARKETING PLOYS TO TRY TO AVOID BECOMING EASY TARGETS FOR NEW PREDATORS LIKE MCI THEY JUST CAN'T SIT STILL WAITING FOR MORE AND MORE COMPANIES COMING INTO THEIR MARKETS SAYS KENNETH LEON A TELECOMMUNICATIONS ANALYST WITH LEHMAN BROTHERS INC THERE'S PRESSURE TO BECOME A LOT MORE PROACTIVE TOWARD THAT END MR LEON SAYS ALL INDUSTRY PLAYERS ARE GOING TO HAVE TO BECOME MORE AGGRESSIVE IN OFFERING WIRELESS SERVICES IN THEIR LOCAL MARKETS THERE WAS NEVER ANY INCENTIVE BEFORE MCI'S ANNOUNCEMENT HE ADDS NOW THE PRESSURE'S ON RIGHT NOW EACH CELLULAR MARKET HAS JUST TWO PROVIDERS BUT THE NUMBER OF COMPETITORS IN EACH MARKET COULD MORE THAN TRIPLE NEXT YEAR AFTER THE FEDERAL COMMUNICATIONS COMMISSION BEGINS AUCTIONING LICENSES SEVEN FOR EACH MARKET FOR PERSONAL COMMUNICATIONS SERVICES A CELLULAR COUSIN THAT OFFERS SEAMLESS WIRELESS COMMUNICATIONS WITH THE MCINEXTEL TIE UNVEILED YESTERDAY THE WIRELESS BUSINESS NOW PROMISES YET ANOTHER POTENT RIVAL THREE TECHNOLOGIES ARE AT WAR IN THIS EFFORT REGULAR CELLULAR PHONE SERVICE THE NEW PERSONAL COMMUNICATIONS APPROACH AND NEXTEL'S SPECIALIZED MOBILE RADIO SERVICE A VENERABLE METHOD USED FOR YEARS FOR TAXI DISPATCH AND OTHER TWOWAY COMMUNICATIONS PERSONAL COMMUNICATIONS IS THE NEWEST AND PERHAPS THE MOST UNPROVEN APPROACH UNLIKE TRADITIONAL CELLULAR SERVICE WHICH WON'T WORK INSIDE OFFICE BUILDINGS AND OFTEN ENDS CARPHONE CONVERSATIONS IN TUNNELS PERSONAL COMMUNICATIONS PHONES USE DIFFERENT RADIO FREQUENCIES AND MORE TRANSMITTERS TO BEAM CALLS OVER SHORTER DISTANCES FROM VIRTUALLY ANYWHERE TECHNICALLY SPEAKING CELLULAR PERSONAL COMMUNICATIONS AND MOBILE RADIO OPERATE ON DIFFERENT PORTIONS OF THE ELECTROMAGNETIC SPECTRUM CURRENT CELLULAR CALLS RIDE ALONG AT FREQUENCIES OF 800 TO 900 MEGAHERTZ OR AS MANY AS 900 MILLION CYCLES A SECOND AND MOBILE RADIO TRANSMITS IN THE SAME RANGE THE GOVERNMENT HAD SPLIT UP THE FREQUENCY SO THAT ONE PORTION WAS RESERVED FOR CELLULAR CALLING AND A SECOND WAS SET ASIDE FOR PRIVATE NETWORKS SUCH AS TAXI DISPATCH PERSONAL COMMUNICATIONS WILL RUN AT 18 GIGAHERTZ OR 18 BILLION CYCLES A HIGHER FREQUENCY THAT REQUIRES SMALLER CELL SITES AND A HIGHER NUMBER OF CELLULAR TOWERS FOR BEAMING CALLS CELL SITES FOR TRADITIONAL CELLULAR ARE GOOD FOR FIVE TO 10 MILES DEPENDING ON THE MARKET SHORTER DISTANCES IN NEW YORK WITH ITS SPECTRUMBLOCKING SKYSCRAPERS LONGER SPANS FOR THE WIDEOPEN PLAINS OF IOWA BUT PERSONAL COMMUNICATIONS CELL SITES ARE GOOD FOR ONLY 100 METERS OR SO SUCH DIFFERENCES MAY BE ALL BUT INVISIBLE HOWEVER TO CONSUMERS THEY JUST WANT TO MAKE A CALL INCREASINGLY IT ALSO APPEARS THAT EVER MORE CONSUMERS LIKE THE IDEA OF PLACING THAT CALL FROM A STAR TREKLIKE COMMUNICATOR THEY CAN TUCK INTO A COAT POCKET OR INTO A SMALL PURSE GIRDING FOR THE COMING ONSLAUGHT OF COMPETITORS MOST COMPANIES ARE BEEFING UP THEIR MARKETING EFFORTS COURTING CUSTOMERS AND LOOKING FOR ANY TECHNOLOGICAL WRINKLE TO EXPLOIT CHICAGOBASED AMERITECH CORP SPENT 500 MILLION OVER THE PAST 18 MONTHS AND PLANS TO SPEND EVEN MORE OVER THE NEXT YEAR BETTING FIRMLY ON CURRENT CELLULAR TECHNOLOGY IT IS INTRODUCING A RAFT OF NEW SERVICES SUCH AS ONEPERSON ONENUMBER CALLING AND PROMOTING THE AMERITECH BRAND NAME AT EVERY TURN AMERITECH'S CELLULAR UNIT HAS BEGUN A MARKETING PUSH IN 400 LOCAL HIGH SCHOOLS WHERE DRIVER'S EDUCATION CLASSES INCLUDE LESSONS ON HOW TO USE A WIRELESS PHONE AMERITECH PROVIDES FREE PHONES AND AIR TIME THE BABY BELL IS DOING A SIMILAR CAMPAIGN WITH POLICE DEPARTMENTS ACROSS ITS MIDWEST SERVICE TERRITORY BECAUSE OF ITS CELLULAR BUSINESS AMERITECH WON'T BE ALLOWED TO COMPETE IN THE MAJOR PART OF THE PERSONAL COMMUNICATIONS BATTLE AND WILL BE RELEGATED TO A LESSER PART OF THE SPECTRUM BUT IT NONETHELESS RECENTLY BEGAN OFFERING A WIRELESS TELEPHONE SERVICE FOR BUSINESS CUSTOMERS THAT ALLOWS WORKERS TO USE THEIR CELLULAR PHONES INSIDE OFFICE BUILDINGS AS PART OF ITS EVENTUAL PERSONAL COMMUNICATIONS PUSH THERE'S NOT ENOUGH WIRELESS BUSINESS HERE IN CHICAGO FOR SEVEN PLAYERS WHAT IT WILL GET DOWN TO IS TWO OR THREE SURVIVORS PREDICTS JOHN E ROONEY PRESIDENT OF AMERITECH'S CELLULAR UNIT SUGGESTING AMERITECH PLANS TO BE AMONG THE LATTER SOME INDUSTRY OBSERVERS SAY MCI'S ENDORSEMENT OF THE MOBILE RADIO TECHNOLOGY AND THE COMING INVASION OF PERSONAL COMMUNICATIONS COMPETITORS WON'T NECESSARILY FORCE EXISTING CELLULAR PLAYERS TO CHOOSE AMONG COMPETING TECHNOLOGIES TO BE SURE SOME PLAYERS WILL WIND UP SPECIALIZING IN ONE TECHNOLOGY OR ANOTHER BUT MANY MAY SIMPLY USE A MIX OF TECHNOLOGIES TO MAKE SURE CUSTOMERS GET WHAT THEY WANT THIS ISN'T A TECHNOLOGY GAME IT'S A MARKETING GAME SAYS JACK GRUBMAN OF PAINEWEBBER INC AND MARKETING IS GOING TO GET TOUGH GIVEN THE ENTRY OF SUCH RECOGNIZED NAMES AS AT&T REGARDED AS ONE OF THE WORLD'S MOST RECOGNIZED BRAND NAMES AND NOW MCI MCI'S INITIAL INVESTMENT IN NEXTEL PROBABLY WON'T BE ITS LAST RUN AT THE WIRELESS MARKET INDEED MANY WIRELESS WATCHERS EXPECT MCI TO CONTINUE BUILDING ITS WIRELESS EMPIRE AFTER PERSONAL COMMUNICATIONS GETS CLOSER TO REALITY WHILE AT&T AND MCI GEAR UP THE REST OF THE INDUSTRY'S PLAYERS ARE TAKING STOCK OF THEIR OPTIONS UNDER FCC RULES WIRELESS COMPANIES WON'T BE ABLE TO GO AFTER THE CHOICER PERSONAL COMMUNICATIONS LICENSES IN MARKETS WHERE THEY ALREADY HAVE A MAJOR PRESENCE THAT LIMITS THE BABY BELLS WHICH ARE MAJOR PLAYERS IN ALL THEIR RESPECTIVE MARKETS THE RESTRICTIONS IN PART PROMPTED PACIFIC TELESIS GROUP BASED IN SAN FRANCISCO TO SPIN OFF ITS CELLULAR ARM INTO AN INDEPENDENT ENTITY RECHRISTENING IT AIRTOUCH COMMUNICATIONS THAT ALLOWS THE TELEPHONE COMPANY TO GO AFTER THE BEST PERSONAL COMMUNICATIONS LICENSES WHICH PROBABLY WILL MEAN THAT IT WILL HAVE TO GO HEADTOHEAD WITH ITS FORMER SIBLING AT SOME POINT 9403010105 940301 FISKE ACTS TO BLOCK RELEASE OF REPORTS ON DEATH OF FOSTER NEW YORK SPECIAL COUNSEL ROBERT B FISKE JR SAID THAT RELEASING GOVERNMENT REPORTS ON THE DEATH OF WHITE HOUSE LAWYER VINCENT FOSTER WOULD HAMPER HIS CONTINUING INVESTIGATIONS MR FISKE'S POSITION WAS DISCLOSED IN COURT PAPERS FILED IN CONNECTION WITH A LAWSUIT BY DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND ROBERT BARTLEY EDITOR OF THE NEWSPAPER TO FORCE THE RELEASE OF THE REPORTS THE SUIT IS PENDING IN A FEDERAL DISTRICT COURT IN NEW YORK RELEASING THE REPORTS PREPARED BY THE POLICE AND THE FEDERAL BUREAU OF INVESTIGATION WOULD SUBSTANTIALLY PREJUDICE THE ABILITY OF THE OFFICE OF INDEPENDENT COUNSEL TO CONDUCT ITS INVESTIGATION MR FISKE SAID IN A LETTER TO THE JUSTICE DEPARTMENT FILED WITH COURT PAPERS YESTERDAY MR FOSTER WAS DEPUTY WHITE HOUSE COUNSEL WHEN HE APPARENTLY SHOT HIMSELF IN A PARK OUTSIDE WASHINGTON ON JULY 20 THE US PARK POLICE RULED IT A SUICIDE MR BARTLEY ON AUG 18 REQUESTED THE REPORTS UNDER THE FREEDOM OF INFORMATION ACT THE REPORTS WEREN'T RELEASED AND HE AND THE PAPER SUED THE JUSTICE DEPARTMENT IN JANUARY MR FISKE WAS APPOINTED TO EXAMINE PRESIDENT CLINTON AND HILLARY CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CORP AND HE ALSO IS LOOKING INTO MR FOSTER'S DEATH IN THE LETTER TO THE JUSTICE DEPARTMENT MR FISKE SAID THE TESTIMONY OF SOME WITNESSES COULD BE TAINTED IF THEY KNEW THE CONTENTS OF THE REPORTS MR BARTLEY SAID CURIOUSLY THE GOVERNMENT'S REPLY DOES NOT MOVE TO DISMISS THE COMPLAINT WHATEVER THE JUDGE RULES WE WILL EXPRESS OUR VIEWS IN THE NEWSPAPER 9403010104 940301 FIRED MERRILL EMPLOYEE SURRENDERS AND PLEADS GUILTY TO INSIDE TRADING NEW YORK A FUGITIVE SINCE 1991 THE FORMER MANAGING DIRECTOR OF MERRILL LYNCH & CO'S LONDON OFFICE SURRENDERED TO FEDERAL AUTHORITIES IN NEW YORK AND PLEADED GUILTY TO AN INSIDETRADING CHARGE NAHUM VASKEVITCH WHO HAS LIVED IN ISRAEL SINCE BEING FIRED BY MERRILL LYNCH IN MARCH 1987 BECAUSE OF ALLEGED INSIDER TRADING PLEADED GUILTY IN FEDERAL DISTRICT COURT IN MANHATTAN TO ONE COUNT OF CONSPIRACY TO TRADE ON INSIDE INFORMATION HE ALSO AGREED TO PAY ABOUT 28 MILLION TO SETTLE SIMILAR CIVIL CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION THE CHARGES RELATE TO SIX DEALS IN THE MID1980S INVOLVING MERRILL CLIENTS INCLUDING WR GRACE & CO'S SALE OF HERMAN'S SPORTING GOODS TO DEE CORP ACCORDING TO FEDERAL PROSECUTORS IN NEW YORK MR VASKEVITCH 45 YEARS OLD WAS INDICTED IN MARCH 1991 HE FLED FROM AUTHORITIES FOUR MONTHS LATER AFTER BEING ARRESTED AND RELEASED IN CYPRUS HE COULDN'T BE EXTRADICTED BECAUSE NEITHER CYPRUS NOR ISRAEL HAS AN EXTRADITION TREATY WITH THE US FOR WHITECOLLAR CRIME MR VASKEVITCH FACES UP TO FIVE YEARS IN PRISON ON THE CONSPIRACY CHARGE HE CAME BACK FOR THE PURPOSE OF PUTTING ALL OF THIS BEHIND HIM SAID HIS ATTORNEY ABRAHAM SOFAER OF THE WASHINGTON DC FIRM HUGHES HUBBARD & REED 9403010103 940301 ENERGY HEATING BILLS PROVE IT WINTER WAS VERY COLD BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERS ACROSS THE COUNTRY ARE WRESTLING WITH SIGNIFICANTLY HIGHER HOME HEATING BILLS GENERATED BY THE NEARRECORD COLD OF JANUARY AND MUCH OF FEBRUARY RESIDENTIAL HEATING BILLS FOR BOTH OIL AND NATURAL GAS JUMPED SHARPLY OVER LAST YEAR'S LEVELS MOST OF THE INCREASE IS THE RESULT OF HIGHER CONSUMPTION RATHER THAN ESCALATING OIL AND GAS PRICES ALTHOUGH RESIDENTIAL HEATING OIL PRICES ROSE THROUGH THIS WINTER THEY AREN'T MUCH HIGHER THAN LAST YEAR'S PRICES DURING THE SAME PERIOD EXPERTS SAY NATURAL GAS PRICES FOR THE CONSUMER ALSO HAVE REMAINED RELATIVELY FLAT COMPARED WITH LAST YEAR BUT THE AMERICAN PETROLEUM INSTITUTE IN WASHINGTON DC SAYS HEATING OIL CONSUMPTION THIS JANUARY ROSE BY 30 OR 950000 BARRELS A DAY OVER LAST YEAR ELECTRIC UTILITIES USED PART OF THIS OIL TRYING TO PREVENT BLACKOUTS DURING THE BITTER COLD UTILITIES THAT COULDN'T GET ENOUGH GAS TO MEET HEAVY DEMAND BOUGHT UP DISTILLATE OR HEATING OIL SUPPLIES TO FUEL EXTRA GENERATORS ACCORDING TO THE PETROLEUM INDUSTRY RESEARCH FOUNDATION IN NEW YORK CONSUMPTION OF NATURAL GAS HIT A RECORD DURING THE MONTH OF JANUARY WITH CUSTOMERS USING 2560 BILLION CUBIC FEET OF THE FUEL THE LAST RECORD OF 2426 BILLION CUBIC FEET WAS SET 15 YEARS AGO MARK STULTZ AN OFFICIAL WITH THE AMERICAN GAS ASSOCIATION IN WASHINGTON DC ESTIMATES THAT GAS USAGE DURING JANUARY WAS ABOUT 11 HIGHER NATIONALLY THE AMERICAN PETROLEUM INSTITUTE ESTIMATES THAT DURING THE COLD SNAP TEMPERATURES IN THE NORTHEAST THE WORLD'S LARGEST HEATING OIL MARKET WERE 35 COLDER THAN LAST YEAR AND 15 COLDER THAN NORMAL LAST WINTER WAS UNUSUALLY MILD WEATHER EXPERTS SAY VARIOUS GAS UTILITIES REPORT THAT IT WAS 268 COLDER IN ILLINOIS 25 COLDER IN WISCONSIN AND 396 COLDER IN KENTUCKY IN JANUARY COMPARED WITH LAST YEAR THE PEOPLES GAS LIGHT & COKE CO WHICH SELLS NATURAL GAS IN CHICAGO SAID ITS CUSTOMERS' BILLS FOR JANUARY WERE 21 HIGHER THAN LAST YEAR'S BILLS CONSUMERS OF COLUMBIA GAS DISTRIBUTION COS IN COLUMBUS OHIO ARE PAYING 372 MORE THAN LAST YEAR ACCORDING TO AN OFFICIAL FOR THE UTILITY THAT MEANT A TYPICAL CUSTOMER PAID 13858 FOR THIS JANUARY COMPARED WITH 10098 LAST YEAR AND AT WISCONSIN GAS CO IN MILWAUKEE CUSTOMERS' BILLS ARE 25 HIGHER THAN LAST YEAR PEOPLE WHO PAID 120 TO HEAT THEIR HOMES LAST JANUARY PAID 163 THIS YEAR RESIDENTIAL HEATING OIL COSTS ARE HARDER TO ASCERTAIN BECAUSE REGIONS ARE SERVICED BY MANY SMALL FUEL OIL BUSINESSES BUT PHILIP VERLEGER A SENIOR FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS BELIEVES RESIDENTIAL OIL BILLS AT LEAST FOR JANUARY COULD BE 30 HIGHER THAN LAST YEAR KEVEN ROONEY EXECUTIVE DIRECTOR OF OIL HEAT INSTITUTE IN HAUPPAGE NY ESTIMATES THAT BILLS ON LONG ISLAND MAY HAVE RISEN ABOUT 15 FOR JANUARY AND WILL LIKELY RISE BY A SIMILAR AMOUNT FOR FEBRUARY THAT MEANS LONG ISLAND CUSTOMERS PAID 440 TO HEAT THEIR HOMES DURING JANUARY AND FEBRUARY THIS YEAR COMPARED WITH ABOUT 375 DURING THE SAME PERIOD LAST YEAR MR ROONEY REPRESENTS HEATING OIL DISTRIBUTORS IN THAT AREA SOME CONSUMERS ALREADY HAVE RECEIVED THESE BILLS EITHER AS LUMP SUMS OR SPREAD OUT OVER SEVERAL PAYMENT PERIODS OTHERS WILL BE GETTING SMACKED WITH THESE BILLS FROM JANUARY AND EARLY FEBRUARY INTO AT LEAST MARCH MR VERLEGER SAID AND SOME CUSTOMERS WHO ARE ON A BUDGET PLAN WHICH MEANS THEY PAY A PRESET AMOUNT EACH MONTH THROUGH THE YEAR WON'T PAY FOR THE COLD WINTER UNTIL JUNE OR YEAREND WHEN THE BUDGETS ARE TYPICALLY REASSESSED 9403010102 940301 MARKETING & MEDIA WHITTLE COMMUNICATIONS TO CLOSE DOWN UNPROFITABLE UNIT FOR DOCTORS' OFFICES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL WHITTLE COMMUNICATIONS LP SAID IT WILL CLOSE DOWN ITS SPECIAL REPORT NETWORK AN UNPROFITABLE UNIT THAT PUT TELEVISION PROGRAMMING IN PHYSICIANS' WAITING ROOMS THE UNIT WAS ONCE AN EXAMPLE OF THE CLOSELY HELD COMPANY'S INNOVATIVE MEDIA PROPERTIES CURRENTLY IN 30000 DOCTORS' OFFICES SPECIAL REPORT WILL BE SUSPENDED FOR AT LEAST TWO YEARS WHITTLE SAID THAT WILL RESULT IN LAYOFFS OF 150 PEOPLE FROM WHITTLE'S WORK FORCE OF 1100 WHITTLE BASED IN KNOXVILLE TENN ALSO SAID YESTERDAY IT HAD NAMED ITS FIRST PRESIDENT AND CHIEF EXECUTIVE IN FOUR YEARS WHITTLE APPOINTED DONALD F JOHNSTONE 63 WHO HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OF KNOXVILLEBASED PHILIPS CONSUMER ELECTRONICS CO THE US CONSUMER ELECTRONICS ARM OF DUTCH ELECTRONICS GIANT PHILIPS ELECTRONICS NV MR JOHNSTONE WILL ASSUME HIS NEW POST IN EARLY MARCH WITH THE CLOSING OF SPECIAL REPORT WHITTLE SAID MR JOHNSTONE WILL OVERSEE THE COMPANY'S FOCUS ON BUILDING INTERACTIVE HIGHWAYS IN FIELDS OF EDUCATION AND HEALTH WHITTLE PLANS TO SPEND MILLIONS IN THE COMING YEARS TO EXPAND WHAT IT CONSIDERS AS ITS PROMISING BUSINESSES INCLUDING CHANNEL ONE THE ADVERTISINGSUPPORTED NEWS PROGRAM BROADCAST IN SCHOOLS AND MEDICAL NEWS NETWORK A PHYSICIANS' INTERACTIVE MEDICAL NEWS NETWORK WHITTLE IS ALSO POURING MONEY INTO THE EDISON PROJECT A FORPROFIT SCHOOL PROJECT SEEKING MANAGEMENT CONTRACTS WITH PUBLIC SCHOOL SYSTEMS NATIONWIDE IS IT A DISAPPOINTMENT DID WE FAIL YES SAID CHRISTOPHER WHITTLE THE COMPANY'S FOUNDER AND CHAIRMAN BUT IT'S NOT A SETBACK FOR THE COMPANY WE'VE LOPPED OFF THE ONLY LOSER IN TERMS OF DOLLARS LAUNCHED IN 1988 SPECIAL REPORT HASN'T SHOWN A PROFIT FOR THREE YEARS FACED WITH HIGH DISTRIBUTION COSTS IT PLAYED PROGRAMS FROM LASER DISKS PRESSED EVERY TWO WEEKS SPECIAL REPORTS BROUGHT IN LESS THAN 20 OF WHITTLE'S ESTIMATED ANNUAL 200 MILLION REVENUE ITS HANDDELIVERED DISTRIBUTION SYSTEM CAUSED EXPENSES TO SIGNIFICANTLY EXCEED REVENUES THE COMPANY SAID MR WHITTLE APPARENTLY WASN'T FORCED BY HIS PARTNERS TO NAME MR JOHNSTONE THOUGH THERE HAS BEEN SPECULATION BY PEOPLE CLOSE TO THE COMPANY THAT MR WHITTLE IS INCREASINGLY UNDER PRESSURE FROM HIS LARGE PARTNERS TO BRING COSTS UNDER CONTROL WHITTLE'S PARTNERS INCLUDE TIME WARNER INC WHICH HOLDS 37 AND PHILIPS ELECTRONICS AND ASSOCIATED NEWSPAPER HOLDINGS PLC WHICH HOLD 25 AND 246 RESPECTIVELY PHILIPS ELECTRONICS IS EXPECTED TO INCREASE ITS STAKE TO 33 SOON LAST DECEMBER MR JOHNSTONE WAS NAMED TO HEAD A TASK FORCE CALLED BY MR WHITTLE TO LOOK AT WHITTLE'S OPERATIONS AND COSTS ONE RECOMMENDATION FROM THE TASK FORCE WAS TO CLOSE DOWN SPECIAL REPORTS AND DIRECT THE MONEY TO MEDICAL NEWS NETWORK HOWEVER MR JOHNSTONE MADE IT CLEAR YESTERDAY THAT HE NO LONGER REPRESENTS PHILIPS' INTEREST IN WHITTLE COMMUNICATIONS I HAVE SEVERED MY RELATIONSHIP WITH PHILIPS MR JOHNSTONE SAID I NOW WORK FOR ALL OF WHITTLE'S PARTNERS AND CHRIS MR JOHNSTONE WILL REPORT DIRECTLY TO MR WHITTLE WHO REMAINS THE MANAGING GENERAL PARTNER WITH FULL OPERATIONAL CONTROL OF THE COMPANY 9403010101 940301 PHYSICIANS CLINICAL LAB SACRAMENTO CALIF PHYSICIANS CLINICAL LABORATORY INC SAID IT OBTAINED A NEW 80 MILLION CREDIT FACILITY THROUGH WELLS FARGO BANK PHYSICIANS CLINICAL SAID THE CREDIT FACILITY CONSISTING OF A 50 MILLION TERM LOAN AND 30 MILLION REVOLVING CREDIT LINE WILL BE USED TO FINANCE THE COMPANY'S PURCHASE OF THE CALIFORNIA CLINICAL LABORATORY OPERATIONS OF DAMON CORP AS WELL AS FOR OTHER FUTURE ACQUISITIONS 9403010099 940301 LEISURE & ARTS THE GALLERY FLYING HIGH A SKATEBOARDER TURNED ARTIST BY TESSA DECARLO SAN FRANCISCO EYES INTENT LEGS CROUCHED A LARGE DUFFEL SLUNG OVER HIS SHOULDER MARK GONZALES AND HIS SKATEBOARD ZOOM DOWN THE STEEP STREET TOWARD A TINY GALLERY CALLED KIKI MR GONZALES IS MOVING SO FAST THERE'S NO QUESTION OF STOPPING FOR THE RED LIGHT AT THE BOTTOM OF THE HILL DEFTLY HE CAREERS THROUGH THE INTERSECTION EVADING THE ONCOMING CARS AND ARRIVES AT KIKI IN ONE PIECE READY TO TALK ABOUT WHETHER A LIVING LEGEND OF SKATEBOARDING CAN MAKE IT IN THE EQUALLY ROUGHANDTUMBLE WORLD OF ART WHAT I DID IN SKATEBOARDING WAS A WHOLE NEW DIRECTION SAYS MR GONZALES WHO IS 25 BUT LOOKS EVEN YOUNGER IN THE SKATER UNIFORM OF OUTSIZED JEANS AND PLAID FLANNEL JACKET IN ARTWORK THERE'S NOTHING NEW I CAN INVENT SO IT'S MORE A PERSONAL FEELING IF PEOPLE LIKE IT THAT MAKES ME HAPPY THERE'S ANOTHER IMPORTANT DIFFERENCE BETWEEN ART AND SKATEBOARDING HE ADDS YOU CAN'T GET HURT DOING ART THINGS MR GONZALES'S DRAWINGS HAVE BEEN FEATURED ON SKATEBOARDS FOR SEVERAL YEARS THE DUFFEL CONTAINS SOME EXAMPLES BUT HE HAS ONLY RECENTLY BEGUN EXHIBITING IN GALLERIES FOLLOWING HIS ONEMAN SHOW AT KIKI HE IS PART OF A GROUP SHOW AT FEATURE ON GREENE STREET IN NEW YORK THAT RUNS UNTIL MARCH 19 AT KIKI THE WORKS ON DISPLAY ARE CARTOONISH SKETCHES IN BLACK MARKER AND PAINTINGS ON PAPER AND CARDBOARD PRICED FROM 10 TO 200 BY THE END OF THE SHOW MORE THAN HALF WILL BE SOLD THE SUBJECTS ARE MOSTLY FIGURES RANGING FROM ENTREPRENEUR WARREN BUFFETT TO GANGSTERS AND HARDTODEFINE HALFHUMAN CREATURES AND ALL THE WORKS SEEM TO PRIZE URGENCY MORE THAN CRAFT IT'S REAL QUICK MR GONZALES EXPLAINS A QUICK FEELING OR A QUICK GESTURE I HARDLY EVER ERASE OR REDO MANY PIECES INCLUDE WORDS AS WELL AS IMAGES THUS IN ONE DRAWING A JOE CAMEL LOOKALIKE WITH A BEARD AND POMPADOUR IS SAYING JUST KINCKING BACK THINKING OF WITCH OQUPACHION WOULD FITE ME BEST MR GONZALES WHO LIVES IN LOS ANGELES AND DROPPED OUT OF SCHOOL AT 16 TO BECOME A PROFESSIONAL SKATEBOARDER ATTRIBUTES HIS CREATIVE ORTHOGRAPHY TO A LEARNING DISABILITY HE ALSO WRITES POETRY SOME OF WHICH FEATURE EMBLAZONS ON ITS STATIONERY HIS POEMS ARE FANTASTIC AND I HATE POETRY SAYS HUDSON FEATURE'S ONENAME IMPRESARIO THEY'RE NONFORMULAIC UNPREDICTABLE AND VERY MODERN MARK'S INTELLECT IS MADE UP OF FLASHES AND HE'S HONESTLY AND UNSELFISHLY SHARING HIS VISION OF THE WORLD SAYS RICK JACOBSEN KIKI'S DIRECTOR WHO CALLS MR GONZALES'S WORK AN EXAMPLE OF MICROCULTURALISM MULTICULTURALISM THAT HONORS THE REALISM OF INDIVIDUAL EXPERIENCE MR GONZALES IS BOTH MEXICAN AND GERMANAMERICAN A MEMBER OF THE YOUTH CULTURE AND THE SKATEBOARDING SUBCULTURE MR JACOBSEN EXPLAINS WHAT MARK DOES IS INTERESTING BECAUSE MARK IS PART OF A GROUP THAT'S MOVING THE WAY AMERICA THINKS RIGHT NOW MR GONZALES HAS ALREADY HAD A HUGE IMPACT ON SKATEBOARDING AS A FOUNDER OF STREET STYLE THE USE OF CURBS RAILINGS DUMPSTERS AND EVERY OTHER FEATURE OF THE URBAN AND SUBURBAN LANDSCAPE FOR JUMPS SLIDES AND OTHER ATHLETIC FEATS MARK IS ONE OF THE MASTERS OF THE GENRE THAT IS STREET SKATING SAYS JAKE PHELPS EDITOR OF THRASHER A SKATEBOARD MAGAZINE HEADQUARTERED HERE THERE ARE TRICKS THAT DON'T SEEM POSSIBLE BUT MARK WAS THE PERSON WHO SAID ANYTHING IS POSSIBLE ONE EXAMPLE IS A TRICK MR GONZALES FIRST PERFORMED IN 1987 AT THIS CITY'S EMBARCADERO PLAZA ONE OF SKATEBOARDING'S MOST FAMOUS VENUES MR GONZALES ROCKETED OFF A LEDGE SAILED SOME 15 FEET OVER A WALKWAY AND A SET OF STAIRS AND ROLLED AWAY ON THE OTHER SIDE THE GAP IS NOW KNOWN AS THE GONZ IN HIS HONOR SUCH PROWESS IS ACHIEVED AT THE PRICE OF NUMEROUS FAILED TRIES THAT SEND FLESH SLAMMING INTO CONCRETE IN SKATEBOARDING YOU HAVE TO TAKE THE BEEF THE PUNISHMENT TO GET THE RESPECT SAYS MR PHELPS WHOSE BAGGY ORANGE SHORTS REVEAL SHINS THICK WITH SCAR TISSUE MARK ATE IT ROYALLY HE GOT WHOMPED HE HAS A REALLY HIGH THRESHOLD FOR PAIN MR GONZALES HASN'T SUSTAINED MORE THAN A FEW BROKEN BONES THUS FAR WHEN YOU GET OLDER YOU GET INJURED EASIER HE SAYS RUEFULLY I HAVE A FEELING I'M GOING TO END UP IN A WHEELCHAIR IF PAIN IS AN IMPORTANT PART OF SKATEBOARDING SO IS GRAPHIC DESIGN MOST SKATEBOARD DECKS WHICH COST BETWEEN 50 AND 150 ARE VIRTUALLY IDENTICAL IN SIZE SHAPE AND MATERIALS THE REAL SELLING POINTS ARE ENDORSEMENTS BY STARS SUCH AS MR GONZALES AND THE DAZZLING DESIGNS IMPRINTED ON THE DECKS SKATEBOARDERS LOOK AT STUFF UNLIKE THE USUAL KID WHO'S JUST A TV CLONE SAYS DON FISHER ONE OF THE OWNERS OF THINK SKATEBOARDS A MANUFACTURER WE NEED RADICAL GRAPHICS NOT MAINSTREAM TYPICAL RUNOFTHEMILL STUFF LIKE NIKE OR REEBOK WOULD DO A FEW YEARS AGO WHEN MR GONZALES WAS ONE OF THE MOST PROMINENT SKATEBOARDING PROS HIS FANS BOUGHT UP DECKS FEATURING HIS DRAWINGS AND HIS SIGNATURE THEN HE DISAPPEARED FROM PROFESSIONAL SKATEBOARDING UNTIL RECENTLY FOR REASONS HE DOESN'T WANT TO DISCUSS WHEN I WAS YOUNGER I LIKED SKATING BECAUSE IT WAS TOTALLY FREE FROM EVERYTHING IT'S ME AND MY SKATEBOARD AND THAT'S IT MR GONZALES SAYS WITH THE ARTWORK IT'S THE SAME THING I CAN GET AWAY FROM EVERYTHING THAT'S BOTHERING ME ALTHOUGH MR GONZALES IS NOW SADDLED WITH TAX TROUBLES DATING FROM HIS EARLIER TIME IN THE LIMELIGHT HE SAYS HE STILL MAKES ENOUGH MONEY FROM SHOE DECK AND OTHER PRODUCT ENDORSEMENTS TO SUBSIDIZE A CAREER IN ART AND POETRY AND HE IS STILL SKATING HE DROPPED OUT OF THE SCENE FOR A WHILE BUT HE SKATED FOR HIMSELF THE WHOLE TIME MR FISHER SAYS ADMIRINGLY WHEN HE CAME BACK HE WAS BETTER THAN EVER INDEED LAST SUMMER THRASHER RAN PHOTOS OF MR GONZALES CHALKING UP ANOTHER FIRST AT THE GONZ JUMPING THE GAP WHILE KICKING HIS BOARD 360 DEGREES IN MIDAIR SAYS THRASHER EDITOR MR PHELPS IF YOU CAN SKATEBOARD LIKE THAT YOU CAN DO ANYTHING MS DECARLO IS A WRITER IN NAPA VALLEY CALIF 9403010098 940301 LEISURE & ARTS ON SPORTS GAMES TO REMEMBER FROM JOHANN AND DAN TO FANS BY FREDERICK C KLEIN LILLEHAMMER NORWAY THE COMMITTEE TO IMPROVE THE WORLD MEETS IMMEDIATELY AFTER EVERY OLYMPICS AND THIS ONE WAS NO EXCEPTION AS RECORDING SECRETARY OF THE GROUP I'VE BEEN AUTHORIZED TO RELEASE THE FOLLOWING RECOMMENDATIONS MOST VIP SEATS AND OTHER PERKS FOR OLYMPIC BIGWIGS SHOULD BE ELIMINATED ANY CITY PICKED TO HOST A WINTER GAMES SHOULD AGREE TO SALT ITS WALKWAYS FOR THE DURATION FUTURE FIGURE SKATING COMPETITIONS SHOULD BE TELECAST WITHOUT COMMENTARY AND THEIR WINNERS DETERMINED BY THE CALLIN VOTES OF FANS THE COMMITTEE NOTED THAT THE INTERNATIONAL OLYMPIC COMMITTEE'S PROFESSIONS OF DEMOCRACY WOULD BE STRENGTHENED IF AS AT EVERY RECENT GAMES LARGE NUMBERS OF THE BEST SEATS AT MANY EVENTS HADN'T STOOD EMPTY HERE WAITING FOR BADGEWEARERS WHO NEVER CAME WHILE PEOPLE WHO WANTED TO GET IN COULDN'T GETTING RID OF VIP DINING FACILITIES AT PLACES WHERE THE HOI POLLOI HAVE TO SETTLE FOR HOT DOGS WOULDN'T HURT EITHER THE COMMITTEE APPLAUDED NORWAY'S COMMITMENT TO THINGS GREEN BUT THOUGHT IT SHOULDN'T HAVE BEEN ACHIEVED AT THE COST OF THE BLACKS AND BLUES SUSTAINED BY THE NUMEROUS CASUALTIES OF LILLEHAMMER'S ICY STREETS SIDEWALKS AND PARKING LOTS IT OPINED THAT VISITORS' ENJOYMENT OF THESE GAMES WAS NOT ENHANCED BY THE THOUGHT THAT EVERY STEP MIGHT BE THEIR LAST A COMMITTEE MAJORITY REASONED THAT FIGURE SKATING BEING A SHOW ITS OUTCOMES SHOULD BE DECIDED BY THE GLOBAL APPLAUSE OF TELEPHONE VOTING HAD THAT PRACTICE BEEN FOLLOWED HERE MOST MEMBERS THOUGHT TORVILL AND DEAN WOULD HAVE WON THE DANCE COMPETITION AND PHILIPPE CANDELORO THE MEN'S SINGLES THE VOTE ON THIS MATTER WAS 58 TO 54 THAT SAID THE COMMITTEE AND JUST ABOUT EVERYBODY ELSE PROCLAIMED THE LILLEHAMMER GAMES A SUCCESS MANY OF THE ATHLETIC PERFORMANCES WERE BRILLIANT AND THRILLING CONTESTS SUCH AS SWEDEN'S SHOOTOUT VICTORY OVER CANADA IN SUNDAY'S HOCKEY FINALE ABOUNDED THE WEATHER WAS FINE FOR A NORWEGIAN WINTER MEANING THERE WERE NO BLIZZARDS THE BUSES RAN ON TIME AND IF YOU ASKED THE DRIVERS NICELY MADE UNSCHEDULED STOPS NO ONE COULD EXPECT MORE THE REAL STARS OF THE GAMES WERE THE NORWEGIAN FANS WHO SMILING AND SINGING JAMMED ALMOST EVERY VENUE NEVER HAVE SO MANY SEEMED SO HAPPY TO BE OUTDOORS FOR SO LONG IN SUCH COLD WEATHER IT MIGHT BE TRUE THAT AS ONE NATIVE TOLD ME WITH A GESTURE TOWARD THE DESOLATE LANDSCAPE THE FIRST NORWEGIAN WAS AN IDIOT BUT IT'S ALSO TRUE THAT THE GUY'S DESCENDANTS HAVE MADE FRIENDS WITH THE CLIMATE THERE'S NO BAD WEATHER JUST IMPROPER CLOTHING CHORUSED THE THOUSANDS WHO BUNDLED BOOTED AND BACKPACKED STOOD IN THE SNOW FOR HOURS TO WATCH THE ACTION ON THE SLOPES TRAILS AND RUNS AND SHOWED UP IN SUCH FORCE FOR THE INDOOR EVENTS THAT ATTENDANCE SET AN OLYMPIC RECORD IN TERMS OF THE PROPORTION OF TICKETS SOLD THE FANS ROOTED FOR THE HOME TEAM ALL RIGHT BUT CHEERED FOR THE VISITORS TOO AND THEIR KNOWLEDGE ABOUT THE SPORTS WAS IMPRESSIVE AT ONE SPEEDSKATING SESSION A ROAR WENT UP WHEN AN OBSCURE NONNORWEGIAN FINISHED HIS RUN WELL BACK IN THE STANDINGS WHAT WAS THAT FOR I ASKED A NORWEGIAN COLLEAGUE HE SET A PERSONAL BEST HE REPLIED HOW DID THEY KNOW THAT THOUGHT I WITH A TOTAL OF 26 MEDALS NORWAY ALSO LED THE NATIONAL COUNT NO SMALL ACHIEVEMENT FOR A LAND OF 43 MILLION SOULS THAT WORKS OUT TO AN ASTONISHING ONE MEDAL FOR EACH 165000 INHABITANTS A RATIO SO LOW THAT ANY NORWEGIAN WHO DIDN'T WIN ONE MIGHT WELL HAVE FELT ASHAMED NORWAY CLEANED UP IN NORDIC SKIING SKI JUMPING AND SPEED SKATING ITS TRADITIONAL STRENGTHS BUT IT ALSO SCORED IN ALPINE SKIING DESPITE THE LACK OF AN ALP AND IN ODDBALL SPORTS SUCH AS MOGUL AND AERIAL SKIING PROVING THAT WITH APPLICATION MUCH IS POSSIBLE MY NOMINATION FOR BEST ATHLETE GOES TO THE NORWEGIAN JOHANN OLAV KOSS THE SPEED SKATER HE WON THREE GOLDS AT 1500 5000 AND 10000 METERS AND SET WORLD RECORDS IN EACH KOSS IS A 25YEAROLD MEDICAL STUDENT WHO SEEMS TO BE A GENUINELY STERLING CHARACTER AMONG OTHER THINGS HE SAID HE'D DONATE HIS STATECONTRIBUTED PRIZE MONEY EQUIVALENT TO ABOUT 30000 FOR EACH OF HIS GOLDS TO A GROUP THAT'S DOING RELIEF WORK IN SARAJEVO HIS COUNTRYMEN OUGHT TO BUILD A STATUE OF HIM AND IN FACT THEY MIGHT THE NEXT MOST REMARKABLE FEAT HERE I THOUGHT WAS THE PERFORMANCE OF THE RUSSIAN TEAM ITS 23 MEDALS WERE MORE THAN THE FORMER SOVIET UNION WITH ALL ITS REPUBLICS WON IN SOME PAST WINTER GAMES TRUE RUSSIA IS A WINTRY LAND WITH A LARGE POPULATION BUT RECENT EVENTS THERE HAVE MAIMED ITS ONCEVAUNTED ATHLETIC INFRASTRUCTURE AND EVEN GOLD MEDALISTS SUCH AS FIGURE SKATER ALEKSEI URMANOV AND SPEED SKATER ALEKSANDR GOLUBEV COMPLAINED ABOUT TRAINING DIFFICULTIES GOLUBEV HOWEVER ALSO PROVIDED A CLUE TO HIS NATION'S PERSISTENCE NEAR THE TOP OF THE MEDAL HEAP ASKED AFTER HIS 500METER VICTORY HOW HE COULD PREVAIL OVER SKATERS FROM LANDS WHOSE SPLENDID INDOOR OVALS PROVIDE YEARAROUND TRAINING OPPORTUNITIES HE SHRUGGED AND SAID MAYBE SKATING OUTDOORS ALL THE TIME MAKES US BETTER INDOORS WHEN WE GET THE CHANCE THE US'S 13MEDAL HAUL INCLUDING SIX GOLDS WAS ITS BEST EVER AT ONE OF THESE AFFAIRS AND ALTHOUGH IT WAS JUST TWO ABOVE THAT OF THE LAST WINTER GAMES IT SEEMED LIKE MORE THAT MIGHT HAVE BEEN BECAUSE OF THE OPENINGDAY TRIUMPH OF TOMMY MOE IN THE MEN'S DOWNHILL SKIING THE SHOWCASE ALPINE EVENT AND ITS FOLLOWUP TWO DAYS LATER DIANN ROFFESTEINROTTER'S VICTORY IN THE WOMEN'S SUPERGIANT SLALOM THOSE WINS IN A SPORT IN WHICH AMERICANS WERE NOT EXPECTED TO SHINE CAST A ROSY WHITE AND BLUE GLOW OVER MUCH THAT FOLLOWED DAN JANSEN FINALLY WON THE SPEEDSKATING GOLD MEDAL HIS COUNTRYMEN HAD PRAYED FOR FOR HIM FEISTY CATHY TURNER REPEATED IN THE WOMEN'S 500METER SHORTTRACK RACE WHILE RIVALS BEMOANED HER SUPPOSED ROUGHHOUSE TACTICS IF THEY WANTED TO SKATE IN STATELY QUIET THEY SHOULD HAVE PICKED THEIR SPORT'S METRIC PAIRS AGAINST THE CLOCK BRANCH BONNIE BLAIR WON TWO GOLDS IN THE WOMEN'S 500 AND 1000METER SPEEDSKATING EVENTS TO RUN HER CAREER OLYMPIC TOTAL TO FIVE THE MOST EVER FOR AN AMERICAN WOMAN IN THE 1988 GAMES WHEN HER VICTORY IN THE 500 WAS ONE OF JUST TWO FIRSTPLACE FINISHES BY YANKS GEORGE STEINBRENNER THE NEW YORK YANKEES OWNER AND US OLYMPIC COMMITTEE HONCHO APPLAUDED THE LITTLE GIRL FROM ILLINOIS IN FACT THE CHAMPAIGN ILL NATIVE IS AN ATHLETE WHO HAS ALWAYS DELIVERED HER BEST PERFORMANCES IN HER MOST IMPORTANT RACES IN THE WORDS OF HER COACH NICK THOMETZ SHE'S A WARRIOR A LABEL THAT FITS HER MUCH BETTER THAN GEORGE'S BLAIR 29 YEARS OLD SAYS SHE WON'T BE BACK FOR THE 1998 GAMES NEITHER PROBABLY WILL OTHER RETURNOLYMPIANS JANSEN WHO'S 28 TURNER 31 ROFFESTEINROTTER 26 OR FIGURE SKATING SILVER MEDALIST NANCY KERRIGAN 24 THESE GAMES WERE THE LAST OF THREE WITHIN A SIXYEAR PERIOD THAT PERMITTED UNPRECEDENTED CONTINUITY IN THE US TEAM AND OTHERS IT'S TIME TO SAY GOODBYE TO THAT BUNCH IT'S NOT YET GOODBYE TIME FOR THE APPALLING TONYA HARDING AFFAIR FOR THERE ARE CRIMINAL CHARGES TO BE RESOLVED SKATEGATE TITILLATED MANY AND BOOSTED THE GAMES' TV RATINGS BUT ITS REAL EFFECT WAS TO KILL WHATEVER WAS LEFT OF THE FEELING THAT SPORTS WERE SPECIAL BRINGING THEM MORE FIRMLY INTO A REAL WORLD IN WHICH PEOPLE TRY TO GET AWAY WITH WHATEVER THEY CAN AND THAT'S TOO BAD 9403010097 940301 LEISURE & ARTS BOOKSHELF GIRLS CHEATED' AT SCHOOL BY RITA KRAMER THE PAST QUARTER CENTURY HAS WITNESSED A DRAMATIC RISE IN THE EDUCATIONAL ACHIEVEMENTS OF AMERICAN WOMEN ACCORDING TO THE NATIONAL CENTER FOR EDUCATIONAL STATISTICS OF THE US DEPARTMENT OF EDUCATIONAL STATISTICS OF THE US DEPARTMENT OF EDUCATION MORE GIRLS THAN BOYS ARE GOING ON TO COLLEGE 67 OF HIGHSCHOOL GIRLS COMPARED WITH 58 OF BOYS AND WOMEN HAVE GONE FROM BEING ONLY 41 OF UNDERGRADUATES 20 YEARS AGO TO 55 TODAY IN GRADUATE EDUCATION THE PROGRESS OF WOMEN HAS BEEN EVEN MORE IMPRESSIVE SINCE 1970 THE PERCENTAGE OF WOMEN EARNING MASTER'S DEGREES HAS RISEN TO 53 FROM 40 THAT OF WOMEN RECEIVING DOCTORAL DEGREES HAS JUMPED TO 39 FROM 14 THIRTYSIX PERCENT OF THOSE NOW RECEIVING MEDICAL DEGREES ARE WOMEN UP FROM 8 AND THIS YEAR 42 OF FIRSTYEAR MEDICAL STUDENTS ARE WOMEN WHILE THE PERCENTAGE OF WOMEN EARNING LAW DEGREES HAS CLIMBED TO MORE THAN 40 FROM 5 THESE ARE IMPRESSIVE FIGURES BUT THEY ARE NOT IMPRESSIVE ENOUGH FOR MYRA AND DAVID SADKER WHOSE NEW BOOK FAILING AT FAIRNESS SCRIBNER'S 347 PAGES 22 MAINTAINS THAT GIRLS ARE SYSTEMATICALLY DISCRIMINATED AGAINST IN AMERICAN SCHOOLS FROM KINDERGARTEN ONWARD IT'S A SUBTLE BUSINESS THIS DISCRIMINATION AND YOU HAD BEST BE GUIDED BY THE SADKERS' WRITINGS OR ENROLL IN ONE OF THEIR WORKSHOPS IF YOU HOPE TO HAVE YOUR EYES OPENED TO THE VARIOUS WAYS IN WHICH TEACHERS CONTINUE THE FIGURES ABOVE NOTWITHSTANDING TO IGNORE GIRLS AND FAIL TO STEER THEM TO MATH SCIENCE MEDICINE AND LAW IT IS THE SADKERS' CONTENTION THAT TEACHERS PAY MORE ATTENTION TO BOYS THAN TO GIRLS CALL ON BOYS MORE OFTEN AND WAIT LONGER FOR BOYS TO ANSWER A QUESTION BEFORE GOING ON TO THE NEXT PUPIL BUT HOW SCIENTIFIC ARE THEIR STUDIES THE SADKERS HAVE NEVER HAD THEIR CONCLUSIONS REPLICATED BY AN OBJECTIVE OUTSIDE AUTHORITY THEIR BOOK LOOKS SCHOLARLY WITH MORE THAN 30 PAGES OF FOOTNOTES BUT ON CLOSE EXAMINATION SOME OF THE SOURCES PROVE TO BE OUTOFDATE OR UNPUBLISHED AND MANY MORE FOOTNOTES CITE EITHER THE AUTHORS' OWN PREVIOUS WORK OR THAT OF THEIR STUDENTS EVEN IF IT WERE TRUE THAT CLASSROOM TEACHERS PAY MORE ATTENTION TO AGGRESSIVE BOYS THAN TO MORE RETICENT GIRLS IT IS A LEAP OF FAITH FROM THAT OBSERVATION TO THE CONCLUSION THAT BOYS THEREFORE ARE LEARNING MORE IT MAY BE THAT TEACHERS EMPLOY VARIOUS TECHNIQUES THAT HAVE MORE TO DO WITH KEEPING ORDER AMONG THE GENERALLY MORE OBSTREPEROUS BOYS THAN WITH PEDAGOGY PER SE IT IS EVEN POSSIBLE THAT QUIET GIRLS ARE PROCESSING MORE INFORMATION ACQUIRING MORE KNOWLEDGE THAN THE MORE ACTIVE BOYS IN THE CLASS SINCE GIRLS GO THROUGH SCHOOL GETTING BETTER GRADES THAN THEIR MALE COUNTERPARTS ALTHOUGH BOYS DO BETTER ON OBJECTIVE TESTS DOES THIS MEAN THAT TESTS ARE UNFAIR TO GIRLS THAT WAS THE OFTREPEATED HEADLINE IN THE MEDIA BLITZ OF LAST YEAR'S PUBLICATION HOW NOT IF SCHOOLS SHORTCHANGE GIRLS ISSUED BY THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN AND DEDICATED TO THE ACHIEVEMENT OF GENDER EQUITY THE REPORT IS BASED LARGELY ON THE QUESTIONABLE CONCLUSIONS OF THE SADKERS AND IS LIKE THEIR BOOK A WORK OF ADVOCACY RATHER THAN SCHOLARSHIP THE REPORT IS STRIKINGLY WRITTEN AND HANDSOMELY PACKAGED AND IT PROVED CONVENIENT TO THE MANY EDUCATION WRITERS AT NEWSPAPERS ALL OVER THE COUNTRY WHO PRINTED ITS ASSERTIONS AS ESTABLISHED TRUTHS BOTH THE REPORT AND THE SADKERS' BOOK WHICH IS SUBTITLED HOW AMERICA'S SCHOOLS CHEAT GIRLS PROVIDE AMMUNITION FOR THE EFFORT NOW UNDER WAY TO REACTIVATE THE WOMEN'S EDUCATIONAL EQUITY ACT PROGRAM IN THE EARLY '70S THIS PROGRAM FUNDED THE DEVELOPMENT OF NONSEXIST TEXTBOOKS THE EFFORT WAS SO SUCCESSFUL THAT THE 1987 NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS TEST FOUND THAT MORE AMERICAN HIGHSCHOOL STUDENTS COULD IDENTIFY HARRIET TUBMAN THAN WINSTON CHURCHILL OR JOSEPH STALIN BUT THAT IS STILL NOT GOOD ENOUGH FOR THE IDEOLOGICALLY DRIVEN AMONG RADICAL FEMINISTS BUYING INTO THE CURRENT TREND TOWARD THE BALKANIZATION OF AMERICAN SOCIETY WHICH HAS GROUPS DEFINED BY RACE ETHNICITY AND GENDER VYING WITH ONE ANOTHER FOR VICTIM STATUS AND COMPENSATORY ENTITLEMENTS BOTH THE REPORT AND THE SADKERS' BOOK WILL PROBABLY BE WIDELY CITED AS EVIDENCE OF THE NEED FOR NEW LEGISLATION THAT WILL OF COURSE REQUIRE FUNDING A BUREAUCRACY TO ENFORCE THE REGULATIONS AND EVENTUALLY WE CAN EXPECT DEMANDS FOR TESTS THAT WOMEN WILL PASS IN PERCENTAGES CORRESPONDING TO THEIR PERCENTAGE OF THE POPULATION THE KIND OF GROUPTHINK INVOLVED DEPENDS ON A DENIAL OF INDIVIDUAL DIFFERENCES IN ABILITY TALENTS AND INTERESTS RESULTING FROM ANYTHING BUT DISCRIMINATION THOSE IN THE THRIVING GENDEREQUITY BUSINESS DON'T SEEM TO NOTICE THAT ASIANAMERICAN GIRLS OFTEN OUTPERFORM BOYS FROM OTHER GROUPS THE TROUBLE WITH SUCH THINKING IS THAT IT DETRACTS FROM THE REAL PROBLEMS IN AMERICAN EDUCATION WHICH HAVE TO DO NOT WITH DISCREPANCIES BETWEEN THE ACHIEVEMENTS OF GIRLS AND BOYS BUT WITH THE STILL SHOCKING DISCREPANCIES BETWEEN THE ACHIEVEMENTS OF AMERICAN BOYS AND GIRLS AND THE BOYS AND GIRLS IN OTHER COUNTRIES WE SHOULD BE WORRYING ABOUT WHY OUR YOUNGSTERS OF BOTH SEXES ARE NEAR THE BOTTOM OF THE LADDER IN INTERNATIONAL TESTS OF MATH AND SCIENCE AND EXCEL ONLY IN MEASURES OF SELFESTEEM THE SADKERS' POLEMIC WILL DO LITTLE TO REMEDY THAT SITUATION MS KRAMER IS THE AUTHOR OF ED SCHOOL FOLLIES THE MISEDUCATION OF AMERICA'S TEACHERS 9403010096 940301 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDIA PROPOSED A BUDGET THAT ONCE AGAIN SIGNALS THE GOVERNMENT'S DETERMINATION TO PRESS AHEAD WITH ITS AMBITIOUS ECONOMICREFORM PROGRAM BUT THE MOVE ALSO REPRESENTS A GAMBLE ON FASTER ECONOMIC GROWTH AND TAXPAYER COMPLIANCE TO BUOY REVENUES AND CONTROL THE DEFICIT THE PLAN FOR THE YEAR STARTING APRIL 1 INCLUDES A SWEEPING TAXSYSTEM REFORM AND SHARP REDUCTIONS IN TAX RATES AND DUTIES TO ALIGN THEM WITH THOSE IN COMPETING ECONOMIES IT LOWERS INTEREST RATES AND MAKES THE RUPEE FULLY CONVERTIBLE ON THE CURRENT ACCOUNT COVERING TRADERELATED TRANSACTIONS FOR EXAMPLE THE BUDGET SLASHES THE CORPORATE TAX RATE FOR INDIAN COMPANIES TO 46 FROM A RANGE OF 5175 TO 575 AND FOR FOREIGN FIRMS TO 55 FROM 65 AND IT CONTINUES REDUCING IMPORT DUTIES TOWARD REGIONAL PARITY WHILE ADJUSTING TARIFF DISTORTIONS REACTION WHILE GUARDED WAS GENERALLY POSITIVE BUSINESSES LAUDED SIMPLIFICATION OF INDIRECT TAXES ESPECIALLY EXCISE DUTIES ON INDUSTRIAL PRODUCTS THAT HAVE SPARKED CORRUPTION AND LITIGATION KAZAKHSTAN WILL OFFER TO SELL MINORITY STAKES IN 38 OF ITS LARGEST COMPANIES TO FOREIGN INVESTORS THIS YEAR THE LATEST ROUND OF THESE DEALS WHICH THE FORMER SOVIET REPUBLIC BEGAN LAST YEAR INCLUDES OIL PRODUCERS AND REFINERS METAL PLANTS FARM AND MACHINETOOL PRODUCERS AND BIG RETAIL STORES INVESTORS MAY ACQUIRE 49 STAKES AND NEGOTIATE LATER FOR FULL OWNERSHIP WESTERNSTYLE CLOSED TENDERS WILL BE EVALUATED BASED ON CASH OFFERED A BUSINESS PLAN AND INVESTMENT COMMITMENTS RUSSIA SCHEDULED A NEW AUCTION OF STOCK IN AO GORKOVSKII AVTOMOBILNYI ZAVOD OR GAZ THE COUNTRY'S THIRDLARGEST AUTO MAKER IN THE WAKE OF A SCANDAL INVOLVING MISUSE OF GOVERNMENT FUNDS THE SALE OF 508 OF GAZ FOR PRIVATIZATION VOUCHERS WILL BE HELD MAY 15 THE INITIAL OFFERING WAS ANNULLED AFTER AN INVESTIGATION FOUND THAT GAZ HAD BOUGHT VOUCHERS ON THE OPEN MARKET WITH BILLIONS OF RUBLES IN GOVERNMENT DEBTFORGIVENESS MONEY THAT WAS TO HAVE BEEN SPENT TO BUILD A DIESELENGINE PRODUCTION LINE RUSSIAN LAW BARS STATEOWNED FIRMS FROM BUYING THEIR OWN SHARES IN PRIVATIZATION AUCTIONS PRESIDENT FIDEL RAMOS SIGNED THE PHILIPPINES' ASSENT TO AN INTERNATIONAL COPYRIGHT ACCORD THE 1971 BERNE CONVENTION AND ASKED THE SENATE TO RATIFY IT QUICKLY AT A MANILA MEETING ON INTELLECTUALPROPERTY RIGHTS MR RAMOS PROMISED PROTECTION OF FILIPINO AND FOREIGN COPYRIGHTS TRADEMARKS AND PATENTS AND ACTION AGAINST PIRACY AND COUNTERFEITING ANY LAXITY HE SAID COULD RESULT IN TRADE SANCTIONS BY THE PHILIPPINES' TOP EXPORT MARKETS MR RAMOS SAID HE FAVORED A PROPOSAL TO SET UP SPECIAL COURTS TO HEAR INTELLECTUALPROPERTY INFRINGEMENT CASES EXCLUSIVELY IN MOLDOVA'S FIRST LEGISLATIVE ELECTIONS SINCE INDEPENDENCE IN 1991 VOTERS SHUNNED NATIONALIST PARTIES THAT FAVOR UNIFICATION WITH ROMANIA IN EARLY RETURNS THE AGRARIANDEMOCRATIC PARTY WHICH WANTS TO JOIN OTHER FORMER SOVIET REPUBLICS IN THE COMMONWEALTH OF INDEPENDENT STATES LED WITH 42 OF THE BALLOTS A LIKEMINDED COALITION OF ETHNIC RUSSIANS AND UKRAINIANS UNEXPECTEDLY GARNERED 25 THE RESULTS WERE A DEFEAT FOR TWO NATIONALIST PARTIES WITH 15 EACH THAT WANT MOLDOVA TO REUNITE WITH NEIGHBORING ROMANIA TO WHICH IT BELONGED UNTIL THE SOVIETS ANNEXED IT IN 1940 A BRAZILIAN INFLATION INDEX GOES INTO EFFECT TODAY UNDER A PROGRAM TO STABILIZE THE ECONOMY AND REDUCE INFLATION THROUGH A BALANCED BUDGET THE REAL VALUE UNIT WAS INITIALLY VALUED AT 6475 CRUZEIROS REAIS OR ABOUT ONE US DOLLAR THE VALUE WILL VARY REFLECTING DAILY DEVALUATIONS FOR INFLATION NOW RUNNING AT 38 A MONTH THE UNIT EVENTUALLY TO REPLACE THE CRUZEIRO REAL CURRENCY WILL BE LINKED TO THREE INFLATION INDEXES TO ADJUST WAGES TO PRICE INCREASES AND PREVENT PAY EROSION NEGOTIATORS FOR VIETNAM AND THE US MET IN HANOI FOR THE FIRST MAJOR POLITICAL AND FINANCIAL TALKS IN TWO DECADES THE TWO SIDES HOPE TO OPEN LIAISON OFFICES AND EVENTUALLY ESTABLISH FULL DIPLOMATIC RELATIONS AND EMBASSIES THE NEGOTIATIONS INITIALLY WERE INTENDED TO RESOLVE 230 MILLION IN US FINANCIAL CLAIMS MOSTLY BUSINESS INVESTMENTS DATING FROM 1975 WHEN THE VIETNAM WAR ENDED THE AGENDA BROADENED AFTER THE US LIFTED A 19YEAR ECONOMIC EMBARGO AGAINST VIETNAM ON FEB 3 ALSO INCLUDES THE STATUS OF SEIZED US GOVERNMENT BUILDINGS AND 290 MILLION IN VIETNAMESE ASSETS FROZEN IN THE US LIAISON OFFICES WOULD DEAL WITH TRADE AND ISSUES INCLUDING AMERICANS MISSING IN ACTION FROM THE WAR VIETNAM'S AGENCY THAT OVERSEES FOREIGN INVESTORS SAID THE WORLD BANK SOON WILL OFFER INSURANCE AGAINST NONCOMMERCIAL RISKS SUCH AS WAR NATIONALIZATION AND PROFIT REPATRIATION BY MAKING VIETNAM A MEMBER OF THE BANK'S INVESTMENTGUARANTEE ARM A ROMANIAN TRADE UNION SAID TWO MILLION WORKERS STAGED A ONEDAY STRIKE TO PROTEST LACK OF ECONOMIC REFORM AND LOW WAGES GERMANY'S MARKETECONOMY SYSTEM WAS VIEWED FAVORABLY BY ONLY 35 OF EASTERN GERMANS SURVEYED BY THE ALLENSBACH INSTITUTE IN DECEMBER DOWN FROM 77 IN THE FIRST POLL IN FEBRUARY 1990 THE GERMAN ECONOMICS MINISTRY SAID 9403010095 940301 BUSINESS BRIEF SHOWBIZ PIZZA TIME INC LOSS IS POSTED FOR 4TH PERIOD CHUCK E CHEESE'S SALES FELL SHOWBIZ PIZZA TIME INC REPORTED AN UNEXPECTED FOURTHQUARTER LOSS CITING WEAKENING SALES AT ITS CHUCK E CHEESE'S RESTAURANTS THE LOSS TOTALED 386000 OR FOUR CENTS A SHARE COMPARED WITH A PROFIT OF 24 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE FELL 2 TO 623 MILLION FROM 636 MILLION SHOWBIZ OF IRVING TEXAS SAID SALES AT ITS CHUCK E CHEESE'S RESTAURANTS OPEN AT LEAST A YEAR TUMBLED 81 HURTING PROFIT MARGINS IN A CONFERENCE CALL WITH ANALYSTS RICHARD M FRANK SAID SHOWBIZ IS SOMEWHAT OPTIMISTIC ABOUT THE FUTURE BASED ON THE INITIAL RESULTS OF SOME STRATEGY SHIFTS THAT INCLUDE NEW MENU ITEMS AND ENTERTAINMENT ACTIVITIES REMODELED RESTAURANTS AND CHANGES IN ADVERTISING SHOWBIZ RELEASED ITS RESULTS AFTER MARKETS CLOSED ITS SHARES ROSE 125 CENTS TO 15 IN NASDAQ STOCK MARKET TRADING 9403010094 940301 BUSINESS BRIEF AMERICAN HOME PRODUCTS CORP WYETHAYERST UNIT TO INVEST IN AFFYMAX DRUG PROGRAM AMERICAN HOME PRODUCTS CORP NEW YORK SAID UNIT WYETHAYERST LABORATORIES AGREED TO INVEST A MINIMUM OF 57 MILLION IN A MAJOR DRUG DISCOVERY PROGRAM AT AFFYMAX NV A NETHERLANDSBASED PHARMACEUTICALS COMPANY IN RETURN WYETHAYERST RECEIVES WORLDWIDE RIGHTS TO POTENTIAL PHARMACEUTICAL PRODUCTS DEVELOPED UNDER THE COLLABORATION THE NEWS DROVE UP AFFYMAX'S SHARES WHICH CLOSED AT 18 UP 175 OR 11 IN NASDAQ STOCK MARKET TRADING UNDER TERMS OF THE AGREEMENT WYETHAYERST WILL INVEST 47 MILLION IN RESEARCH AND DEVELOPMENT PAYMENTS OVER FIVE YEARS AND PURCHASE 10 MILLION OF AFFYMAX'S SHARES AT 20 A SHARE THE AGREEMENT INCLUDES OPTIONS BY WYETHAYERST TO EXTEND THE COLLABORATION FOR UP TO TWO ADDITIONAL TWOYEAR PERIODS INCLUDING ADDITIONAL EQUITY AND RESEARCH AND DEVELOPMENT PAYMENTS 9403010092 940301 LABOR UNIONS INCREASINGLY INITIATE PROXY PROPOSALS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL UNION SHOWDOWNS WITH MANAGEMENT AREN'T LIMITED TO THE NEGOTIATING TABLE ANY MORE AS ORGANIZED LABOR HAS BECOME ONE OF THE MOST AGGRESSIVE INITIATORS OF PROXY FIGHTS AS MANY AS 60 UNIONRELATED PROPOSALS COULD BE SLATED FOR SHAREHOLDER VOTES THIS SPRING DOUBLE THE NUMBER OF SUCH PROPOSALS FILED LAST YEAR ACCORDING TO THE INVESTORS RESPONSIBILITY RESEARCH CENTER A WASHINGTON DC RESEARCH GROUP THE PROPOSALS COME BOTH FROM PENSIONFUND TRUSTEES WHO MANAGE UNION MEMBERS' RETIREMENT MONEY AND FROM ACTIVE OR RETIRED UNION MEMBERS WHO TYPICALLY OWN SHARES THROUGH THEIR COMPANIES' STOCKPURCHASE PROGRAMS WHILE MOST OF THESE PROPOSALS CALL FOR THE SAME CORPORATEGOVERNANCE REFORMS THAT PUBLIC PENSION FUNDS HAVE LONG CHAMPIONED A GROWING NUMBER SEEK TO PUSH CONTROVERSIAL UNION AGENDAS THAT WORRIES SOME SHAREHOLDERRIGHTS ADVOCATES WHO FEAR THAT LABOR'S NEW ACTIVISM MAY SUBVERT NOT ADVANCE THEIR OWN GOALS FOR INSTANCE A RECENT PROPOSAL AT ROADWAY SERVICES INC BROUGHT BY AN EMPLOYEE WITH BACKING FROM THE TEAMSTERS UNION DEMANDED THAT EXECUTIVE COMPENSATION AT THE AKRON OHIO TRUCKING COMPANY BE DIRECTLY LINKED TO ITS INVESTMENT IN WORKERS THE ROADWAY CASE AND OTHERS LIKE IT CLEARLY CONTAIN A CONFLICT OF INTEREST BETWEEN WORKERS' DESIRES AND THOSE OF THE AVERAGE SHAREHOLDER SAYS LILLI GORDON OF GORDON GROUP A NEWTON MASS CONSULTING FIRM SPECIALIZING IN CORPORATEGOVERNANCE ISSUES ALTHOUGH THE ROADWAY MOTION HAS ALREADY BEEN DISQUALIFIED BY THE COMPANY ON GROUNDS THAT THE EMPLOYEE HASN'T BEEN A STOCKHOLDER LONG ENOUGH MS GORDON WARNS THAT SUCH ENCROACHMENTS BY PEOPLE WITH MULTIPLE AGENDAS MAY UNDERMINE THE OVERALL PROXY PROCESS LABOR'S NEW ACTIVISM IS ALL THE MORE STRIKING SINCE IT COMES AS TRADITIONAL SHAREHOLDER ACTIVISTS SUCH AS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S BIGGEST PENSION SYSTEM FOR STATE EMPLOYEES ARE SHARPLY CURTAILING THEIR PROXY DRIVES PUBLICPENSION ACTIVISTS HAVE ACQUIRED SO MUCH CLOUT THAT COMPANY EXECUTIVES AND INDEPENDENT BOARD MEMBERS TYPICALLY INVITE THEM TO IRON OUT CORPORATEGOVERNANCE DIFFERENCES IN PRIVATE THUS AVOIDING PUBLIC PROXY SPATS BUT COMPANIES DON'T VIEW THE UNIONRELATED PROPOSALS SO CONSTRUCTIVELY THESE PROPOSALS HAVE EVERYTHING TO DO WITH LABOR RELATIONS AND NOTHING TO DO WITH CORPORATE GOVERNANCE SAYS JAMES ALLEN A VICE PRESIDENT AT CONSOLIDATED FREIGHTWAYS INC A PALO ALTO CALIF TRANSPORT COMPANY THAT FACES TWO SUCH PROXY INITIATIVES THESE GUYS ARE THE WOLF IN THE SHEEP'S CLOTHING HE ADDS IT'S STRICTLY A CAMPAIGN OF HARASSMENT THE CONSOLIDATED FREIGHTWAYS MOTIONS BROUGHT BY TWO EMPLOYEESHAREHOLDERS WITH ACTIVE SUPPORT OF THE TEAMSTERS CALL FOR THE ADOPTION OF CONFIDENTIAL SHAREHOLDER VOTING AND THE ELIMINATION OF STAGGERED TERMS FOR THE COMPANY'S BOARD MEMBERS WHILE BOTH PROPOSALS TOUCH ON COMMON CORPORATEGOVERNANCE ISSUES THEY HAVE BEEN VIGOROUSLY CONTESTED BY THE COMPANY'S MANAGEMENT TO SETTLE SUCH STANDOFFS THE SECURITIES AND EXCHANGE COMMISSION USUALLY ENDS UP PLAYING THE ROLE OF KING SOLOMON DECIDING WHICH UNIONRELATED PROPOSALS SHOULD BE PUT TO A VOTE AND WHICH SHOULD BE QUASHED IN DRAWING THAT LINE THE SEC HAS SO FAR TENDED TO FAVOR UNIONRELATED PROPOSALS THAT ADDRESS ACCEPTED CORPORATEGOVERNANCE THEMES SUCH AS THOSE BROUGHT IN CONSOLIDATED FREIGHTWAY'S CASE LAST WEEK THE SEC RULED THAT AT LEAST ONE OF THE TEAMSTERBACKED MOTIONS COULD BE SUBMITTED TO SHAREHOLDERS FOR APPROVAL DESPITE MANAGEMENT'S EFFORTS TO GET BOTH THROWN OUT THE SEC DID AGREE WITH MANAGEMENT HOWEVER THAT THE TWO PROPOSALS ESSENTIALLY CAME FROM ONE SOURCE THE TEAMSTERS BECAUSE SEC RULES LIMIT THE NUMBER OF PROPOSALS FROM SHAREHOLDER GROUPS TO ONE EACH THE SEC'S DECISION MEANS THE TEAMSTERS MUST MAKE A CHOICE JAMES WEAVER THE 62YEAROLD RETIRED TRUCKER WHO FILED THE CONFIDENTIALVOTE PROPOSAL IS APPEALING THAT RULING HOWEVER I'M NO STOOGE OF THE TEAMSTERS HE SAYS INDEED MR WEAVER LAST YEAR SPONSORED A SHAREHOLDER PROPOSAL THAT ISN'T NORMALLY THOUGHT TO BE IN THE INTERESTS OF ORGANIZED LABOR ELIMINATION OF A COMPANY ANTITAKEOVER DEFENSE THAT PROPOSAL WAS WITHDRAWN BEFORE THE ANNUAL MEETING WHEN CONSOLIDATED FREIGHTWAYS AGREED TO ELIMINATE THE ANTITAKEOVER DEFENSE BY 1995 MEANWHILE THE SEC HAS BEEN LESS SYMPATHETIC TOWARD UNIONBACKED PROXY PROPOSALS THAT INVOLVE LABOR RELATIONS SUCH AS THOSE BROUGHT BY EMPLOYEES AT DOW JONES & CO WHICH PUBLISHES THE WALL STREET JOURNAL THE DOW JONES CASE INVOLVED TWO PROPOSALS FROM TWO EMPLOYEESHAREHOLDERS ONE SEEKING TO LINK THE CHIEF EXECUTIVE OFFICER'S COMPENSATION TO NO MORE THAN 20 TIMES THAT OF THE AVERAGE DOW JONES EMPLOYEE AND ANOTHER SEEKING TO LIMIT THE CEO'S ANNUAL PERCENTAGE PAY INCREASE TO THAT OF AN AVERAGE WORKER THE PROPOSALS WERE FILED IN SEPTEMBER AT A TIME WHEN THE COMPANY WAS NEGOTIATING A WAGE PACKAGE WITH THE INDEPENDENT ASSOCIATION OF PUBLISHERS' EMPLOYEES THE UNION THAT REPRESENTS ABOUT A FIFTH OF DOW JONES'S EMPLOYEES IN LATE JANUARY THE SEC ACCEPTED THE COMPANY'S ARGUMENT THAT THE PROPOSALS WERE PART OF A UNION CAMPAIGN TO WIN HIGHER WAGES AND OTHER CONTRACT IMPROVEMENTS AS A RESULT IT ALLOWED DOW JONES TO DELETE THE PROPOSALS FROM ITS PROXY STATEMENT IAPE REPRESENTATIVES SAID THEY ASKED THE SEC TO RECONSIDER ITS DECISION BUT WERE TURNED DOWN THE UNION'S MAIN ARGUMENT WAS THAT THE COMPANY CHALLENGED WHETHER OUR MOTIVES NOT OUR ISSUES WERE FAIR SAYS IAPE PRESIDENT RONALD CHEN HE ADDS THAT IAPE HOPES TO WORK WITH OTHER UNIONS TO ENCOURAGE THE SEC TO RETHINK USING MOTIVATION AS A LITMUS TEST IN ITS PROXY JUDGMENTS SOME OTHER SHAREHOLDER ACTIVISTS ALSO EXPRESS DISCOMFORT WITH THE SEC'S MAKING JUDGMENTS ABOUT SHAREHOLDER MOTIVATIONS IT'S NONE OF THE SEC'S BUSINESS IF I'M A UNION MEMBER IF IT'S A LEGITIMATE GRIEVANCE SAYS SARA TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS AN ORGANIZATION OF PENSION FUNDS THAT PROMOTES SHAREHOLDER ACTIVISM IN ANY CASE LABOR'S NEW PROXY INITIATIVES AREN'T LIKELY TO DIE OUT SOON WE HOPE TO SEE MORE OF THIS SAYS MICHAEL CALABRESE A LAWYER WITH THE AFLCIO'S DEPARTMENT OF EMPLOYEE BENEFITS UNION ACTIVISTS DO NOT VIEW SHORTTERM PORTFOLIO RETURNS AS THE SOLE CRITERION FOR TAKING POSITIONS ON SHAREHOLDER ISSUES 9403010091 940301 INTERNATIONAL BRIEF SKANDINAVISKA ENSKILDA BANKEN SWEDISH GROUP POSTS PROFIT ON STRONG RISE IN REVENUE SWEDISH BANKING GROUP SKANDINAVISKA ENSKILDA BANKEN SAID IT SWUNG TO A 357 MILLION KRONA 445 MILLION OPERATING PROFIT IN 1993 FROM A 537 BILLION KRONA LOSS IN 1992 SE BANKEN ATTRIBUTED ITS RETURN TO A SMALL OPERATING PROFIT TO A STRONG INCREASE IN THE GROUP'S INCOMEGENERATING ABILITY TOTAL REVENUE ROSE 35 LAST YEAR TO 1844 BILLION KRONOR WHILE OPERATING PROFIT BEFORE PROVISIONS FOR LOAN LOSSES ROSE 81 TO 1052 BILLION KRONOR FROM 581 BILLION KRONOR IN 1992 IT SAID THE 1993 OPERATING PROFIT OF 357 MILLION KRONOR INCLUDES CAPITAL GAINS OF 840 MILLION KRONOR ON THE GROUP'S INVESTMENT PORTFOLIO IN THE FOURTH QUARTER THE GROUP HAD AN OPERATING PROFIT BEFORE LOAN LOSSES OF 29 BILLION KRONOR THE BEST QUARTERLY RESULT DURING THE PAST YEAR 9403010090 940301 WHO'S NEWS PENTAIR INC PENTAIR INC ST PAUL MINN DAVID D HARRISON 46 YEARS OLD FORMERLY VICE PRESIDENT FINANCE AND INFORMATION TECHNOLOGY AT CAMCO INC A COMPANY MAJORITYOWNED BY GENERAL ELECTRIC CORP WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF INDUSTRIAL PRODUCTS POWER TOOLS AND PAPER PRODUCTS EFFECTIVE MARCH 16 HE SUCCEEDS JOHN H GRUNEWALD WHO RETIRED 9403010089 940301 BUSINESS BRIEF EDO CORP LOSS POSTED FOR 4TH QUARTER FIRM IS CUTTING WORK FORCE EDO CORP REPORTED A FOURTHQUARTER LOSS JOB CUTBACKS AND LOWER SALES DUE TO CUTS IN MILITARY SPENDING THE DESIGNER AND MAKER OF ADVANCED ELECTRONIC AND SPECIALIZED EQUIPMENT BASED IN COLLEGE POINT NY POSTED A NET LOSS OF 62 MILLION OR 119 A SHARE COMPARED WITH EARNINGS OF 15 MILLION OR 21 CENTS A SHARE THE YEAR BEFORE SALES SANK 12 TO 275 MILLION THE 1993 QUARTER INCLUDED A 98 MILLION CHARGE FOR A RESTRUCTURING PLAN TO ADDRESS THE CONTINUING WORLDWIDE DECLINE OF THE DEFENSE AND AEROSPACE BUSINESS AND IMPROVE THE COMPANY'S COMPETITIVENESS THE PLAN INCLUDES THE DISCONTINUANCE OF THE COMPANY'S DEFENSE BUSINESS IN CANADA THE RELOCATION OF SOME US PRODUCTION AND THE RELATED DISPOSITION OF NONPRODUCTIVE ASSETS AND WORKFORCE REDUCTIONS THE COMPANY SAID IT EXPECTS TO WHITTLE ITS WORK FORCE OF 1000 BY ELIMINATING 100 JOBS THIS YEAR THROUGH ATTRITION RETIREMENT OR LAYOFFS 9403010088 940301 LETTERS TO THE EDITOR A WAY OUT OF THE BABY BELLS DILEMMA PROF THOMAS GALE MOORE'S ARGUMENT FOR EITHER TOTALLY DEREGULATING THE BELL TELEPHONE COMPANIES OR RETAINING THE PRESENT RESTRICTIONS ON THEIR OFFERING INFORMATION SERVICES AND VIDEO PROGRAMMING OR MANUFACTURING EQUIPMENT PARTIAL DECONTROL OF BABY BELLS RINGS HOLLOW EDITORIAL PAGE FEB 1 IGNORES THE AVAILABILITY OF A THIRD OPTION THAT WOULD AVOID THAT STARK AND UNSATISFACTORY CHOICE THE NECESSITY THAT HE SEES FOR CHOOSING ONE OR THE OTHER OF THESE TWO EXTREMES IS TRACEABLE TO THE CONTINUED REGULATION OF THE COMPANIES IN MOST OF OUR STATES UNDER A RATEBASE/RATEOFRETURN SYSTEM WHICH ESSENTIALLY ENTITLES THEM TO A REASONABLE OPPORTUNITY TO EARN A GOING RETURN ON THEIR INVESTED DOLLARS IN THESE CIRCUMSTANCES THERE IS INDEED A DANGER THAT IF PERMITTED TO ENTER INTO THE ACTIVITIES NOW CLOSED TO THEM THE TELEPHONE COMPANIES WILL COMPETE UNFAIRLY IN THE VARIOUS WAYS PROF MOORE DESCRIBES OVERINVESTING IN COSTLY UPGRADINGS OF THEIR SYSTEMS IN ORDER TO PROVIDE NEW ESOTERIC SERVICES PAYING INFLATED PRICES FOR EQUIPMENT THEY PURCHASE FROM THEIR MANUFACTURING AFFILIATES CUTTING PRICES ON THE COMPETITIVE SERVICES TO UNREMUNERATIVE LEVELS IN EACH CASE RECOUPING THE COSTS OR LOSSES FROM THEIR MONOPOLY SERVICES WITH THE PERMISSION OF REGULATORS OBLIGED TO PERMIT THEM A REASONABLE RETURN ON THEIR TOTAL OPERATIONS HENCE HIS POSING THE CHOICE EITHER DEREGULATE THEM ENTIRELY OR CONTINUE TO EXCLUDE THEM FROM THE COMPETITIVE FIELDS BUT THE FIRST OF THESE IS CERTAINLY NOT GOING TO HAPPEN IN THE NEAR FUTURE NOR SHOULD IT EVEN THOUGH COMPETITION AT THE LOCAL LEVEL IS MOST CERTAINLY COMING THE OVERWHELMING MAJORITY OF SUBSCRIBERS ARE STILL SERVED BY A LOCAL TELEPHONE COMPANY MONOPOLY AND COMPETITIVE SUPPLIERS OF EQUIPMENT INFORMATION SERVICES OR LONGDISTANCE CALLING CONTINUE TO BE HEAVILY DEPENDENT UPON THOSE LOCAL NETWORKS FOR ACCESS TO ULTIMATE CUSTOMERS REGULATION CONTINUES TO BE NECESSARY THEREFORE TO PROTECT CUSTOMERS FROM EXPLOITATION AND COMPETITORS FROM EXCLUSION OR DISCRIMINATION IN THEIR ACCESS TO THE ESSENTIAL LOCAL FACILITIES WHILE I THINK PROF MOORE GROSSLY UNDERSTATES THE CAPACITY OF REGULATORS TO GUARD AGAINST MANY OF THESE ABUSES EVEN UNDER THE PRESENT SYSTEM OF REGULATION FOR EXAMPLE BY ALLOCATING TOTAL COMPANY COSTS HOWEVER ARBITRARILY BETWEEN REGULATED AND UNREGULATED OPERATIONS THE REAL EVIL IS THE PRESENT ESSENTIALLY COSTPLUS METHOD OF REGULATION WHAT MOST COUNTRIES OF THE WORLD AND A FEW AMERICAN JURISDICTIONS NOW DO INSTEAD IS REGULATE THE MONOPOLY PRICES DIRECTLY LINKING THEIR COURSE OVER TIME NOT TO THE COMPANY'S ACTUAL COSTS BUT TYPICALLY TO SOME INDEX OF ECONOMYWIDE INFLATION MINUS AN ESTIMATED ACHIEVABLE ANNUAL IMPROVEMENT IN PRODUCTIVITY WHILE THERE ARE PROBLEMS IN DEVISING A REASONABLE FORMULA AND SOME TENDENCY IN SOME COUNTRIES TO CORRECT THE FORMULA AFTER A PERIOD OF YEARS BY LOOKING AT WHAT HAS HAPPENED TO ACTUAL RETURNS THIS METHOD IN PRINCIPLE GIVES THE REGULATED COMPANIES THE SAME INCENTIVES AS UNREGULATED COMPANIES TO HOLD DOWN THEIR COSTS IMPROVE THEIR EFFICIENCY AND ENGAGE IN SUCCESSFUL INNOVATION WHILE FORCING THEM TO ABSORB THE COST OF INVESTMENTS THAT TURN OUT UNSUCCESSFULLY IN SO DOING IT ALSO ELIMINATES THE INCENTIVE TO ENGAGE IN THE VARIOUS PERVERSE PRACTICES THAT PROF MOORE DESCRIBES BECAUSE IT DENIES THE UTILITY COMPANIES THE RIGHT TO RECOVER THE COSTS OF THEIR INEFFICIENCIES MISTAKES OR PREDATORY TACTICS IN INCREASED CHARGES TO MONOPOLY CUSTOMERS THERE IS PLENTY OF ROOM FOR A MUCH GREATER AMOUNT OF DEREGULATION OF TELECOMMUNICATIONS THAN WE HAVE SO FAR ADOPTED IN THIS COUNTRY BUT THE POSSIBILITY OF SUBSTITUTING RATE CAPS OR DIRECT PRICE FOR RATEOFRETURN REGULATION PROVIDES THE CLUE MISSING FROM PROF MOORE'S EXPOSITION TO EXTRICATING US FROM THE DILEMMA HE DESCRIBES 9403010087 940301 FORD AND CHRYSLER BICKER LIKE SIBLINGS OVER WHICH IS BETTER MOTOR CITY'S MOTOR MOUTHS BADMOUTH EACH OTHER GM IS THE ODD KID OUT BY DOUGLAS LAVIN AND JACQUELINE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP PRESIDENT ROBERT A LUTZ IS FURIOUS JABBING HIS CIGAR AT THE AIR AND ROARING IT'S TRUE OUR QUALITY IS BETTER THAN THEIRS FORD MOTOR CO'S TREASURER DAVID MCCAMMON TOLD REPORTERS RECENTLY REFERRING TO CHRYSLER'S SPATE OF RECENT RECALLS AND THERE'S MORE CHRYSLER'S DESIGNERS SAYS FORD DIVISION CHIEF ROSS ROBERTS ARE NOTHING MORE THAN FORD IMITATORS ALL THEIR VEHICLES ARE MUCH MORE TAURUSSHAPED HE SAYS CHRYSLER PRODUCT EXECUTIVE STEVE BARTOLI SNIPES THAT FORD'S NEW CONTOUR COMPACT IS BORING AND NO ROOMIER THAN THE CHRYSLER NEON SUBCOMPACT WE WERE SURPRISED HE SAYS SO IT GOES BACK AND FORTH LIKE TWO BICKERING BROTHERS AND WHERE IS GENERAL MOTORS CORP IN THIS FEUDING ON THE SIDELINES LICKING ITS WOUNDS NO MORE UGLY CARS IS ITS LATEST BATTLE CRY YOU GO TO CHRYSLER'S MEETINGS AND THEY'RE TALKING ABOUT FORD AND YOU GO TO FORD AND THEY'RE TALKING ABOUT CHRYSLER SAYS STEVE GIRSKY AN AUTO ANALYST AT PAINEWEBBER INC THEN YOU GO TO GM AND THEY'RE TALKING ABOUT AUTOMOTIVE COMPONENTS SUCH SQUABBLING CONTRASTS SHARPLY WITH THE SOPHISTICATED IMAGES THAT FORD AND CHRYSLER LIKE TO PROJECT FORD WANTS TO BE SEEN AS THE GLOBAL CAR COMPANY AND ITS CHAIRMAN AS THE INDUSTRY'S CHIEF STATESMAN CHRYSLER WANTS TO BE KNOWN AS THE WORLD'S PREMIER AUTO MAKER BUT AS THE JAPANESE THREAT HAS RECEDED AND GM HAS BEEN WEAKENED BY YEARS OF MISMANAGEMENT FORD AND CHRYSLER MORE AND MORE HAVE COME TO REGARD EACH OTHER AS CHIEF RIVALS PSYCHOLOGIST HARRY LEVINSON A CONSULTANT AND FORMER HARVARD MEDICALSCHOOL PROFESSOR LIKENS IT TO A BAD CASE OF SIBLING RIVALRY CHRYSLER IS STAFFED WITH TOP EXECUTIVES WHO LEFT FORD NOW DR LEVINSON SAYS THEY MAY BE DRIVEN TO SHOW THAT FORD MADE A MISTAKE THAT FORD SHOULD HAVE LOVED THEM BETTER AND FORD IS TAKING ON THE ROLE OF AN OLDER BROTHER TRYING TO SQUASH AN UPSTART ITS MANAGEMENT SAYS DR LEVINSON IS OUT TO PROVE THAT CHRYSLER EXECUTIVES ARE NEVER GOING TO BE ADEQUATE DR LEVINSON WARNS THAT WHAT MAY BE HARMLESS CROSSTOWN SNIPING COULD TURN INTO A NEUROTIC PREOCCUPATION DIVERTING MANAGEMENT'S ATTENTION FROM REAL ISSUES WHILE THAT REMAINS TO BE SEEN THE NUMBER OF SLINGS AND ARROWS FLYING BETWEEN FORD'S DEARBORN HEADQUARTERS AND CHRYSLER'S HIGHLAND PARK BASE KEEPS RISING TAKE THE NEON CHRYSLER'S MUCHPUBLICIZED NEW SMALL CAR THE NO 3 AUTO MAKER CREATED A STIR AT THE DETROIT AUTO SHOW IN JANUARY WHEN IT PRICED THE BASE MODEL AT 8975 HOW COULD THEY DO THAT THE AUTOMOTIVE PRESS ASKED FORD SOON HAD AN ANSWER OFFICIALS PUT OUT A TIP SHEET TITLED NEON 8975 MYTH THE ATTACK MAINTAINS THAT IT WILL COST ABOUT 11000 TO GET A NEON WITH AIR CONDITIONING 10836 CHRYSLER CORRECTS PLUS 500 IN DESTINATION FEES BUT FORD COULDN'T VERY WELL HIDE ITS CHRYSLERENVY AT THE AUTO SHOW FORD ENGINEERS WORKING ON THE NEXTGENERATION ESCORT WERE SEEN CRAWLING ALL OVER THE NEONS ON DISPLAY AND LAST NOVEMBER WHEN FORD WAS LOOKING FOR HELP IN DESIGNING THE NEW ESCORT IT SENT A QUESTIONNAIRE TO SUPPLIERS THAT HAD WORKED ON THE NEON THOMAS STALLKAMP A FORMER FORD EXECUTIVE WHO IS NOW CHRYSLER'S VICE PRESIDENT FOR SUPPLY INTERCEPTED ONE AND RETURNED IT TO FORD WITH A NOTE WE'RE FLATTERED AND THEN THERE ARE THE MINIVAN WARS FORD HOPED TO ATTRACT REAMS OF PUBLICITY FOR ITS NEW WINDSTAR MINIVAN AT THE DETROIT AUTO SHOW WHERE THE VEHICLE MADE ITS PUBLIC DEBUT THE PRODUCT IS AIMED SQUARELY AT CHRYSLER'S BREADANDBUTTER MINIVANS WHICH DOMINATE THE MARKET BUT CHRYSLER LAUNCHED A PREEMPTIVE STRIKE TO TAKE THE EDGE OFF FORD'S UNVEILING SOME WEEKS EARLIER CHRYSLER INVITED JOURNALISTS TO ITS DESIGN CENTER FOR A LOOK AT A NEW CHRYSLER MINIVAN THAT IS DUE OUT NEXT YEAR THE CLEAR MESSAGE FORD'S WINDSTAR MAY BE CATCHING UP BUT THE NEXT CHRYSLER OFFERING WILL LEAPFROG AHEAD IT WORKED THE NEW FORD MINIVAN WAS BARELY NOTICED AT THE DETROIT AUTO SHOW ANTICIPATING THE INTRODUCTION OF THE NEW FORD PRODUCT CHRYSLER JUST STARTED A DISCOUNT PROMOTION FOR ITS MINIVANS HOPING TO SOAK UP ENOUGH MINIVAN DEMAND TO FOUL UP FORD'S PRODUCT LAUNCH MEANWHILE FORD BRAGS ABOUT ITS STRONG BALANCE SHEET A DIG AT CHRYSLER'S UNFUNDED PENSION LIABILITY IN RETURN CHRYSLER BOASTS OF ITS RECORD PERVEHICLE PROFITS NEARLY TWICE AS BIG AS FORD'S FORD ISN'T IMPRESSED I SUPPOSE THEY'VE BEEN DOWN SO LONG THEY FELT THEY HAVE TO GET UP ON THE MOUNTAIN AND CROW ABOUT SOMETHING SAYS FORD CHAIRMAN ALEXANDER TROTMAN CHRYSLER KNOWS THAT FORD IS THE LOWCOST US PRODUCER WITH SOME OF THE MOST EFFICIENT PLANTS IN NORTH AMERICA AND THAT FORD HAS FIVE OF THE 10 BESTSELLING VEHICLES IN THE COUNTRY SO CHRYSLER IS TRYING TO CHANGE THE COMPETITIVE FOCUS MR LUTZ THE FORMER HEAD OF FORD'S EUROPEAN BUSINESS ARGUES THAT TOO MUCH ATTENTION IS PAID TO FORD'S STRONG SUIT PERCAR PRODUCTION COSTS WHILE NOT ENOUGH IS PAID TO INITIAL INVESTMENT COSTS CHRYSLER'S FORTE CHRYSLER SPENT 13 BILLION TO DEVELOP THE NEON AND EVEN LESS ON THE LARGER STRATUS/CIRRUS CARS CODE NAMED THE JA LINE FORD MEANWHILE SPENT 6 BILLION TO DEVELOP ITS COMPETING CONTOUR/MYSTIQUE COMPACTS AND A SISTER EUROPEAN MODEL FORD EXECUTIVES ALL BUT CRINGE WHENEVER THAT FIGURE IS MENTIONED MR LUTZ'S LINE OF THINKING APPEARS TO HAVE CAUGHT ON UPON THE LAUNCH OF THE STRATUS/CIRRUS MODELS A DETROIT FREE PRESS HEADLINE DECLARED CHRYSLER'S JA MODELS TAKE ON JAPAN A FEW WEEKS LATER WHEN THE FORD PRODUCTS WERE SHOWN A HEADLINE IN THE NEWSPAPER READ FORD DEFENDS HIGH COST OF NEW MODELS FORD HASN'T TAKEN THE HITS IDLY AN AD FOR ITS MERCURY VILLAGER MINIVAN LAMPOONS LEE IACOCCA THE FORMER CHRYSLER CHAIRMAN THE AD PORTRAYS AN UNNAMED AUTOCOMPANY CHAIRMAN AS BEING FURIOUS THAT THE VILLAGER IS SO ADVANCED THE TWO COMPANIES' TOP PUBLICRELATIONS EXECUTIVES SAY THEY ARE TRYING TO ARRANGE A TRUCE IN THE WAR OF WORDS ARTHUR C BUD LIEBLER OF CHRYSLER PHONED HIS FORD COUNTERPART TO MAKE PEACE RECENTLY WE SHOULD BE SPEAKING WITH ONE VOICE AS AN INDUSTRY HE SAYS NOT TAKING CHEAP SHOTS AT EACH OTHER FORD PR VICE PRESIDENT DAVID SCOTT SAYS HE TOLD MR LIEBLER THAT WE'RE A PEACEFUL LITTLE AUTO COMPANY BUT WHEN THE SCUD MISSILES START COMING IN REGULARLY WE SOMETIMES HAVE TO FIRE OFF A FEW PATRIOTS HE SAYS HE AGREES THOUGH THAT THE MISSILE EXCHANGES OUGHT TO STOP BUT THE DEBUT NEXT FALL OF THE NEW FORD AND CHRYSLER COMPACTS HAS ALREADY SPARKED A NEW ROUND THEY WON'T TELL YOU WHEN THEY'RE LAUNCHING CONFIDES A CHRYSLER EXECUTIVE REFERRING TO THE FORD PRODUCT BECAUSE THEY'RE HAVING DELAYS AND THE WHISPERING AT FORD IS A NEAR ECHO CHRYSLER'S RUNNING INTO DELAYS WITH THE JA 9403010086 940301 MONEY TO BE MADE FOR ALL RUSSIA'S WOES IT OFFERS QUICK RICHES TO DEFT ENTREPRENEURS LOCALS OPEN BANKS AND CAFES SOMETIMES SKIRTING LAWS AND FENDING OFF THE MOB STASHING CASH IN SWITZERLAND BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW NO ONE LIKES DEALING WITH RUSSIAN MOBSTERS BUT GRIGORY NERSESYAN A LITERARY AGENT TURNED ENTREPRENEUR FINDS HE IS COPING JUST FINE THE MAFIA IS THE ONLY THING IN THIS COUNTRY THAT WORKS SAYS MR NERSESYAN WHO RECENTLY OPENED A TEXMEX RESTAURANT IN THE SHADOW OF THE KREMLIN PROTECTION MONEY IS A SERVICE YOU PAY IT AND THE SMALLTIME HOOLIGANS STAY AWAY IT'S A FAIR DEAL AND IT DOESN'T COST THAT MUCH THERE IS A NEW CLASS OF ENTREPRENEUR IN RUSSIA MADE UP OF HARDY SOULS LIKE MR NERSESYAN WHO AREN'T DAUNTED BY THE ROUGH FABRIC OF THE LOCAL BUSINESS WORLD RUSSIA'S HEADLINES SCREAM OUT THAT BUSINESS IS DOOMED ECONOMIC DEPRESSION RUNAWAY INFLATION RACKETS TANKS IN THE STREETS FAILED FREEMARKET REFORMS BUT DON'T LET THAT FOOL YOU THERE IS BIG MONEY BEING MADE HERE AND SOME OF IT IS EVEN LEGITIMATE FOR RUSSIA'S BRAVEST ENTREPRENEURS THE COUNTRY'S CRISES AMOUNT TO NEW WAYS TO MAKE A FORTUNE IT ISN'T FOR THE SKITTISH MUCH OF THE FAST MONEY IS IN TRADITIONALLY VOLATILE MARKETS LIKE REAL ESTATE AND SOME OF THESE ENTREPRENEURS COULD LOSE EVERYTHING AS QUICKLY AS THEY MADE IT LONGTERM INVESTMENT IS RARE AND RUSSIA'S MOBSTERS CAN BE VIOLENT EVEN DEADLY STILL RUSSIA'S CHAOTIC ECONOMY HAS CREATED ASTONISHING OPPORTUNITIES FOR INSTANT WEALTH I LIKE A VOLATILE MARKET SAYS ROMAN MIAGKIKH A SELFSTYLED RUSSIAN FINANCIER AND MEL GIBSON LOOKALIKE WHO FAVORS EXPENSIVE ITALIAN FASHIONS IT CREATES AN ENVIRONMENT FOR SUPERPROFITS MR NERSESYAN CASUALLY STYLISH IN LEVIS AND A TWEED JACKET RAISED A FEW EYEBROWS WHEN HE DECIDED TO PLUNGE INTO THE RESTAURANT TRADE FOR YEARS HE HAD BEEN A TYPICAL INTELLECTUAL QUIETLY DISSATISFIED WITH THE SOVIET SYSTEM HE TOILED IN THE LITERARY WORLD AT A FIXED STATE SALARY AND DID ENGLISH TRANSLATIONS ON THE SIDE TO EARN POCKET MONEY WHEN THE SYSTEM COLLAPSED MR NERSESYAN WATCHED AS SEVERAL FRIENDS LAUNCHED PRIMITIVE BUT SUCCESSFUL BUSINESS CAREERS WITH 30000 BORROWED FROM FRIENDS AND BANKS HE FINALLY TOOK THE PLUNGE HIMSELF LAST YEAR MR NERSESYAN QUICKLY LEARNED TO PROFIT FROM THE SORRY CONDITION OF RUSSIA'S FORMER STATERUN SECTOR HE WAS ABLE TO PRY PRIME SPACE AWAY FROM A GRAND TURNOFTHECENTURY THEATER THAT RELIED ON SUBSIDIES AND THAT NOW IS IN DIRE NEED OF CASH BESIDES PAYING RENT AND UTILITIES MR NERSESYAN AGREED TO PROVIDE 50 FREE MEALS A DAY TO THE THEATER'S CAST IN RETURN FOR A STOREFRONT SPACE ON TVERSKAYA STREET THE CLOSEST THING MOSCOW HAS TO A FIFTH AVENUE HE DIDN'T NEED TO SPEND MUCH TO FIX UP THE RESTAURANT EITHER HE HIRED A CONSTRUCTION CREW FORMER SOVIET ROCKET DESIGNERS DESPERATE FOR EXTRA CASH TO BUILD A REASONABLY AUTHENTIC SWINGING SALOON DOOR AND HE HAD A WESTERN PIANOBAR TABLEAU PAINTED ON THE WALL HE FOUND SOME SOMBREROS AND PUT A BIG BLOWUP CORONA BOTTLE IN THE WINDOW BUSINESS IS LIKE THEATER SAYS MR NERSESYAN WHO ALSO MANAGES AN INTERNATIONAL THEATRICAL EXCHANGE PROGRAM YOU PUT IN A FEW TOUCHES LIKE THE SALOON DOOR AND PEOPLE THINK YOU MUST HAVE SPENT A MILLION DOLLARS BUSINESS HAS TAKEN OFF MR NERSESYAN SAYS HE RECOUPED HIS INVESTMENT IN FULL AFTER JUST SIX WEEKS EVERYTHING IN THIS COUNTRY IS IN SHORT SUPPLY HE SAYS SITTING IN A BOOTH AS A RED HOT CHILI PEPPERS TAPE BLARES IN THE BACKGROUND ANYTHING YOU DO IS DOOMED TO SUCCESS RUSSIA'S TURMOIL DOESN'T FAZE THIS CREW OF OPTIMISTS THOUGH FREEMARKET REFORMERS YEGOR GAIDAR AND BORIS FYODOROV HAVE QUIT THE GOVERNMENT AND MANY FEAR THAT PREMIER VIKTOR CHERNOMYRDIN WILL HALT REFORMS AND PURSUE INFLATIONARY POLICIES RUSSIA'S ENTREPRENEURS ARE SHRUGGING OFF THE THREAT THE ONLY SERIOUS RISK WOULD BE A FASCIST GOVERNMENT THAT NATIONALIZES BANKS AND STOPS MARKET REFORM SAYS SERGEI OVSIANNIKOV A BANK CHAIRMAN WHO VIEWS SUCH A SCENARIO AS UNLIKELY BUT A CABINET RESHUFFLE A SHIFT IN ECONOMIC REFORM THAT WON'T AFFECT BUSINESS ONLY 32 MR OVSIANNIKOV FOUR YEARS AGO HELPED COFOUND MEZHCOMBANK WHICH HAS QUICKLY BECOME ONE OF RUSSIA'S MOST RESPECTED FINANCIAL INSTITUTIONS BANKING IS PERHAPS RUSSIA'S LARGEST ENTREPRENEURIAL ACTIVITY THERE ARE 2000 BANKS WITH 6000 BRANCHES IN ALL UP FROM NEXT TO NONE A FEW YEARS AGO MEZHCOMBANK'S LATEST SHAREHOLDERS' REPORT SUMS UP THE WILD WEST SPIRIT DESPITE PERSISTENT NATIONAL RECESSION WE CONFIDENTLY LOOK FORWARD TO CONTINUED GROWTH MUCH OF THAT GROWTH IS FUELED BY SPECULATIVE TRANSACTIONS THE BANK BOUGHT UP THOUSANDS OF PRIVATIZATION VOUCHERS GIVEN TO CITIZENS TO INVEST IN FORMER STATE COMPANIES AT JUST OVER THE FACE VALUE OF 10000 RUBLES IT SOLD OUT NEAR THE MARKET'S PEAK OF 50000 THE VOUCHER PRICE HAS SINCE SLIPPED TO ABOUT 20000 RUBLES IN A MARKET FULL OF SCOUNDRELS MR OVSIANNIKOV TRIES HARD FOR AN IMAGE OF RESPECTABILITY HE HAS A SPACIOUS OFFICE FITTED WITH SLEEK BLACK SCANDINAVIAN FURNITURE ON THE WALLS HANG WORKS OF RUSSIAN ABSTRACT ARTISTS HIS CLIENT LIST INCLUDES SUCH TOPNAME FOREIGN COMPANIES AS MCDONALD'S CORP REUTERS HOLDINGS PLC AND AB VOLVO AS A BENEFICIARY OF REFORM MR OVSIANNIKOV VOTED FOR MR GAIDAR'S PARTY IN DECEMBER'S PARLIAMENTARY ELECTIONS BUT AS INDUSTRIAL OUTPUT SLIPS TO 50 OF ITS 1989 LEVEL THE BANK IS JUST AS HAPPY TO SEE RUSSIA DO WITHOUT REFORM PROGRAMS SUCH AS STRICT MONETARY POLICY I'D LOVE TO SEE GAIDAR BACK IN POWER SAYS MIKHAIL ALEKSEYEV WHO RUNS THE BANK'S SECURITIES DEPARTMENT BUT ONLY AFTER CHERNOMYRDIN SAVES RUSSIA'S INDUSTRY FOR ANDREI BARINSKY RUSSIA'S EASY MONEY IS IN PROPERTY A SOFTSPOKEN 24YEAROLD WHO STUDIED COMPUTERS IN COLLEGE HE IS DIRECTOR OF THE CENTER OF INTERNATIONAL EXCHANGES AND DEVELOPMENT THE PRIVATE COMPANY TWO YEARS OLD PRESIDES OVER A GROWING STABLE OF PRIME MOSCOW OFFICE SPACE THAT IT RENTS OUT AT TOP DOLLAR TO THE EXPANDING FOREIGNBUSINESS COMMUNITY THE POTENTIAL SEEMS NEARLY LIMITLESS BUT SO IS THE RISK GIVEN THE MURKY LEGISLATION ON PROPERTY RIGHTS THOUGH THE GOVERNMENT RECOGNIZES PRIVATE PROPERTY IT OFTEN ISN'T CLEAR WHO OWNS FORMER STATE PROPERTY OR WHETHER IT CAN BE RESOLD TO MR BARINSKY THESE ARE MINOR ANNOYANCES INVESTMENT SHOULD BE POURING IN HE SAYS AS HE DESCRIBES MOSCOW'S UNDERSUPPLY OF GOODQUALITY OFFICE SPACE CONCEDING THAT HE CAN'T FULLY NAIL DOWN OWNERSHIP RIGHTS HE SAYS HIS LAWYERS ARE ABLE TO BUILD UP WHAT HE FEELS IS AN AIRTIGHT LEGAL PAPER TRAIL CLARIFYING OWNERSHIP WESTERN BUSINESSMEN SPEND MILLIONS ON LAWYERS AND ON TRIPS TO RUSSIA SAYS MR BARINSKY SHAKING HIS HEAD IN DISBELIEF BUT WITHOUT 100 GUARANTEES THEY WON'T INVEST EVEN 1000 IT MUST BE SOMETHING ABOUT THE WESTERN PSYCHE RECENTLY MR BARINSKY STEPPED IN TO HELP RESCUE A STATE DENTAL COLLEGE THAT CAN'T PAY ITS BILLS BUT THAT HAPPENS TO OWN SOME ATTRACTIVE REAL ESTATE THE DEVELOPERS WORKED OUT A DEAL THEY WILL RENOVATE PART OF THE COLLEGE BUY IT MEDICAL EQUIPMENT AND HELP IT PAY ITS SALARIES AND STUDENT STIPENDS IN RETURN THEY GET A 25YEAR LEASE WITH THE RIGHT TO SUBLET ON A FIVESTORY BUILDING AFTER RENOVATING IT AT A COST OF 500000 MOSTLY RAISED FROM RUSSIAN BANKS FLUSH WITH MONEY THEY PLAN TO RENT IT OUT TO FOREIGN BUSINESSES FOR A POTENTIAL ANNUAL REVENUE OF ABOUT 800000 IT'S A GOOD BUSINESS SAYS MR BARINSKY FLASHING A SMILE NIKOLAI LISAI IS ANOTHER OF RUSSIA'S COCKY NEW BUSINESSMEN HIS SUCCESS SELLING COMPUTERSOFTWARE SYSTEMS TO RUSSIAN BANKS ATTRACTED THE ATTENTION OF RUSSIAN MOBSTERS HE SAYS WHO MADE HIM A REMARKABLE PROPOSAL THE MOBSTERS MR LISAI SAYS WANTED EQUITY AND OFFERED TO PROVIDE HIM WHATEVER HE NEEDED IN RETURN INVESTMENT CAPITAL A MERCEDES A HUGE SALARY AFTER ONE YEAR THEY EXPECTED HIS COMPANY LIEKS LTD TO BE SUCCESSFULLY WORKING AT WORLDCLASS LEVELS BUT THERE WAS A CATCH IF THE COMPANY DIDN'T PRODUCE RESULTS HE SAYS THEY TOLD HIM FLATLY THEY WOULD KILL HIM HE DECLINED BUT ONLY AFTER KEEPING DISCUSSIONS OPEN FOR SEVERAL WEEKS HE SAYS ULTIMATELY MR LISAI EXPLAINS MY WIFE WASN'T CRAZY ABOUT IT MR LISAI 38 EARNED HIS STRIPES HELPING TO DEVELOP THE SOVIET COUNTERPART OF AMERICA'S STRATEGIC DEFENSE INITIATIVE OR STAR WARS WEAPONS SYSTEM HE CONTROLLED THE ACTIVITY OF SIX BIG MILITARY ENTERPRISES WITH 75000 WORKERS AND A BUDGET OF ABOUT 12 MILLION A YEAR HE SAYS IN 1991 HE LEFT TO TRY PRIVATE BUSINESS ROUNDING UP SEVERAL PARTNERS FROM AMONG THE STATE ENTERPRISES HE HAD WORKED WITH HE BEGAN PRODUCING SOFTWARE FOR COMPUTERAIDED DESIGN AND MANUFACTURING FOR A YEAR BUSINESS WAS SLOW MR LISAI EVEN HAD TO SELL ONE OF HIS PRIZED COMPUTERS TO MEET PAYROLL A BREAKTHROUGH CAME HOWEVER WHEN HE DECIDED TO BEGIN MARKETING SOFTWARE SYSTEMS FOR RUSSIA'S SURGING BANKS THEY HAVE ALL THE MONEY AND THEY ARE JUST LOOKING FOR WAYS TO SPEND IT HE SAYS THIRD WAVE NETWORK LTD A BRITISH SOFTWARE CONSULTANT APPARENTLY AGREES IT INVESTED 300000 IN LIEKS LAST YEAR AT THE CUTTING EDGE OF RUSSIAN BUSINESS ARE PEOPLE LIKE MR MIAGKIKH THE SELFPROCLAIMED FINANCIER HE TAKES ADVANTAGE OF THE FACT THAT SO MANY OF RUSSIA'S LAWS ON BUSINESS AND FINANCE ARE MURKY MR MIAGKIKH 28 DROPPED OUT OF MOSCOW STATE UNIVERSITY IN 1989 TO GET IN ON THE GROUND FLOOR OF RUSSIAN CAPITALISM HE SOLD COMPUTERS FOR TWO YEARS BEFORE STARTING A TRADING COMPANY WORKING WITH EMIGRES IN THE WEST HE IMPORTED EVERYTHING FROM TRACK SUITS AND SNEAKERS TO CAR STEREOS AND VIDEO EQUIPMENT IN AN ECONOMY OF SHORTAGES IT WAS LIKE PRINTING MONEY AS THE TRUCKS PULLED INTO HIS SHOP PEOPLE LINED UP READY TO BUY WHATEVER HE HAD HE SAYS AS BUSINESS DEVELOPED AND MR MIAGKIKH'S HARDCURRENCY HOLDINGS MULTIPLIED HE DECIDED TO MOVE INTO FINANCE NOW HE MANAGES BILLIONS OF RUBLES MILLIONS OF DOLLARS FOR CLIENTS INCLUDING A NUMBER OF RUSSIAN TRADING COMPANIES HE SAYS A GOOD BANKER NEVER WORKS WITH HIS OWN MONEY SAYS MR MIAGKIKH MINE IS ALL IN SWITZERLAND HE ALSO FACILITATES CLIENTS' USE OF OFFSHORE ACCOUNTS WHICH HE HAS ESTABLISHED IN SWITZERLAND THE VIRGIN ISLANDS THE CAYMAN ISLANDS AND THE BAHAMAS AS THE RUBLE NOSEDIVED EARLIER THIS YEAR MR MIAGKIKH MADE A QUICK PROFIT SWAPPING CURRENCIES HE BOUGHT DOLLARS AT 1300 RUBLES TO THE DOLLAR AND SOLD THEM AT NEARLY 1700 THEN BOUGHT RUBLES AGAIN WHEN THE MARKET SETTLED DOWN IT'S PRIMITIVE HE SAYS BUT IT'S BIG BUSINESS MR MIAGKIKH INSISTS THAT MOST OF HIS BUSINESS DEALINGS ARE LEGAL THOUGH SOME OF HIS METHODS CLEARLY PUSH THE ENVELOPE WHEN THE DOLLAR SURGES HE SAYS HE CAN SOMETIMES BUY RUBLES AT THE PREVIOUS DAY'S RATE FROM A FRIENDLY BANK DEALER I GIVE THE GUY 10 HE SAYS HE'S HAPPY HE'S ON A FIXED SALARY HE ALSO BOASTS THAT THROUGH CONTACTS HE CAN GET INFORMATION FROM CENTRALBANK PERSONNEL ON PROJECTED EXCHANGERATE FLUCTUATIONS GETTING COMPLETELY RELIABLE INFORMATION IS HARD HOWEVER IT WOULD COST MORE THAN THE PROFITS I COULD MAKE ON IT MR MIAGKIKH SAYS HE FREELY ADMITS HE HIDES SOME OF HIS INCOME FROM THE GOVERNMENT SOMETHING MANY BUSINESSPEOPLE HERE DO BECAUSE OF CORPORATE TAXES FEDERAL AND LOCAL THAT CAN REACH 80 I WOULD NEVER ROB THE PEOPLE HE SAYS BUT I DO PREVENT THE STATE FROM ROBBING ME MR MIAGKIKH CLAIMS HE ALREADY HAS EARNED ENOUGH TO EMIGRATE WITH HIS FAMILY TO THE WEST AND LIVE COMFORTABLY FOR THE REST OF HIS LIFE BUT HIS DREAMS ARE A BIT GRANDER I'D LIKE TO CREATE A FINANCIAL EMPIRE HE SAYS MAYBE EVEN TO BE ABLE ONE DAY TO PULL POLITICIANS' STRINGS 9403010085 940301 LETTERS TO THE EDITOR I'M BULLISH NOT BEARISH IN YOUR JAN 28 WASHINGTON WIRE YOU REPORT THAT I HAVE FOUND A NEW VILLAIN IN EXPLAINING AWAY THE ECONOMY'S STRENGTH IF CLINTON'S TAX INCREASES DON'T CHOKE OFF GROWTH' HE SAYS THE HEALTH PLAN WILL' THIS IS NOT WHAT I TOLD YOUR REPORTER IN FACT MY FORECASTS HAVE BEEN BULLISH ON THE FINANCIAL MARKETS AND REAL ECONOMY FOR THE LAST 18 MONTHS AND CONTINUE TO BE REGARDING THE PRESIDENT'S HEALTH CARE PLAN I SAID IT WOULD CRIPPLE THE ECONOMY IF IT PASSED AS PROPOSED BUT THAT I BELIEVED THERE WAS NO CHANCE OF THAT REPUBLICAN LEADERSHIP IN CONGRESS HAS ALREADY INDICATED IT CANNOT SUPPORT A PLAN THAT WILL SMOTHER CAPITAL FORMATION OR BURDEN SMALL BUSINESS THIS IS REASON ENOUGH TO EXPECT THE LEGISLATION THAT EMERGES TO ALSO HAVE POSITIVE EFFECTS 9403010084 940301 COMPUTERS BEFUDDLED PC USERS FLOOD HELP LINES AND NO QUESTION SEEMS TO BE TOO BASIC BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS THE EXASPERATED HELPLINE CALLER SAID SHE COULDN'T GET HER NEW DELL COMPUTER TO TURN ON JAY ALBLINGER A DELL COMPUTER CORP TECHNICIAN MADE SURE THE COMPUTER WAS PLUGGED IN AND THEN ASKED THE WOMAN WHAT HAPPENED WHEN SHE PUSHED THE POWER BUTTON I'VE PUSHED AND PUSHED ON THIS FOOT PEDAL AND NOTHING HAPPENS THE WOMAN REPLIED FOOT PEDAL THE TECHNICIAN ASKED YES THE WOMAN SAID THIS LITTLE WHITE FOOT PEDAL WITH THE ON SWITCH THE FOOT PEDAL IT TURNED OUT WAS THE COMPUTER'S MOUSE A HANDOPERATED DEVICE THAT HELPS TO CONTROL THE COMPUTER'S OPERATIONS PERSONALCOMPUTER MAKERS ARE DISCOVERING THAT IT'S STILL A LOWTECH WORLD OUT THERE WHILE THEY ARE FINALLY HAVING GREAT SUCCESS SELLING PCS TO HOUSEHOLDS THEY NOW HAVE TO DEAL WITH PEOPLE TO WHOM MONITORS AND DISK DRIVES ARE AS FOREIGN AS ANOTHER LANGUAGE IT IS RATHER MYSTIFYING TO GET THIS NICE BEAUTIFUL MACHINE AND NOT KNOW ANYTHING ABOUT IT SAYS ED SHULER A TECHNICIAN WHO HELPS FIELD CONSUMER CALLS AT DELL'S HEADQUARTERS HERE IT'S GOING INTO UNFAMILIAR TERRITORY ADDS GUS KOLIAS VICE PRESIDENT OF CUSTOMER SERVICE AND TRAINING FOR COMPAQ COMPUTER CORP PEOPLE ARE LOOKING FOR A COMFORT LEVEL ONLY TWO YEARS AGO MOST CALLS TO PC HELP LINES CAME FROM TECHIES NEEDING HELP ON COMPLEX PROBLEMS BUT NOW WITH COMPUTER SALES TO HOMES EXPLODING AS NEW MULTIMEDIA FUNCTIONS GAIN MASS APPEAL PC MAKERS SAY THAT AS MANY AS 70 OF THEIR CALLS COME FROM RANK NOVICES PARTLY BECAUSE OF THE VOLUME OF CALLS SOME COMPUTER COMPANIES HAVE STARTED CHARGING HELPLINE USERS THE QUESTIONS ARE OFTEN SO BASIC THAT THEY COULD HAVE BEEN ANSWERED BY OPENING THE MANUAL THAT COMES WITH EVERY MACHINE ONE WOMAN CALLED DELL'S TOLLFREE LINE TO ASK HOW TO INSTALL BATTERIES IN HER LAPTOP WHEN TOLD THAT THE DIRECTIONS WERE ON THE FIRST PAGE OF THE MANUAL SAYS STEVE SMITH DELL'S DIRECTOR OF TECHNICAL SUPPORT THE WOMAN REPLIED ANGRILY I JUST PAID 2000 FOR THIS DAMN THING AND I'M NOT GOING TO READ A BOOK INDEED IT SEEMS THAT THESE BUYERS RARELY REFER TO A MANUAL WHEN A PHONE IS AT HAND IF THERE IS A BOOK AND A PHONE AND THEY'RE SIDE BY SIDE THE PHONE WINS TIME AFTER TIME SAYS CRAIG MCQUILKIN MANAGER OF SERVICE MARKETING FOR AST RESEARCH INC IN IRVINE CALIF IT'S A PHENOMENON OF PEOPLE WANTING TO TALK TO PEOPLE SEEMINGLY SIMPLE COMPUTER FEATURES BAFFLE SOME USERS SO MANY PEOPLE HAVE CALLED TO ASK WHERE THE ANY KEY IS WHEN PRESS ANY KEY FLASHES ON THE SCREEN THAT COMPAQ IS CONSIDERING CHANGING THE COMMAND TO PRESS RETURN KEY SOME PEOPLE CAN'T FIGURE OUT THE MOUSE TAMRA ENGLE AN AST TECHNICAL SUPPORT SUPERVISOR SAYS ONE CUSTOMER COMPLAINED THAT HER MOUSE WAS HARD TO CONTROL WITH THE DUST COVER ON THE COVER TURNED OUT TO BE THE PLASTIC BAG THE MOUSE WAS PACKAGED IN DELL TECHNICIAN WAYNE ZIESCHANG SAYS ONE OF HIS CUSTOMERS HELD THE MOUSE AND POINTED IT AT THE SCREEN ALL THE WHILE CLICKING MADLY THE CUSTOMER GOT NO RESPONSE BECAUSE THE MOUSE WORKS ONLY IF IT'S MOVED OVER A FLAT SURFACE DISK DRIVES ARE ANOTHER BUGABOO COMPAQ TECHNICIAN BRENT SULLIVAN SAYS A CUSTOMER WAS HAVING TROUBLE READING WORDPROCESSING FILES FROM HIS OLD DISKETTES AFTER TROUBLESHOOTING FOR MAGNETS AND HEAT FAILED TO DIAGNOSE THE PROBLEM MR SULLIVAN ASKED WHAT ELSE WAS BEING DONE WITH THE DISKETTE THE CUSTOMER'S RESPONSE I PUT A LABEL ON THE DISKETTE ROLL IT INTO THE TYPEWRITER AT AST ANOTHER CUSTOMER DUTIFULLY COMPLIED WITH A TECHNICIAN'S REQUEST THAT SHE SEND IN A COPY OF A DEFECTIVE FLOPPY DISK A LETTER FROM THE CUSTOMER ARRIVED A FEW DAYS LATER ALONG WITH A XEROX COPY OF THE FLOPPY AND AT DELL A TECHNICIAN ADVISED A CUSTOMER TO PUT HIS TROUBLED FLOPPY BACK IN THE DRIVE AND CLOSE THE DOOR ASKING THE TECHNICIAN TO HOLD ON THE CUSTOMER PUT THE PHONE DOWN AND WAS HEARD WALKING OVER TO SHUT THE DOOR TO HIS ROOM THE TECHNICIAN MEANT THE DOOR TO HIS FLOPPY DRIVE THE SOFTWARE INSIDE THE COMPUTER CAN BE EQUALLY BEFUDDLING A DELL CUSTOMER CALLED TO SAY HE COULDN'T GET HIS COMPUTER TO FAX ANYTHING AFTER 40 MINUTES OF TROUBLESHOOTING THE TECHNICIAN DISCOVERED THE MAN WAS TRYING TO FAX A PIECE OF PAPER BY HOLDING IT IN FRONT OF THE MONITOR SCREEN AND HITTING THE SEND KEY ANOTHER DELL CUSTOMER NEEDED HELP SETTING UP A NEW PROGRAM SO DELL TECHNICIAN GARY ROCK REFERRED HIM TO THE LOCAL EGGHEAD YEAH I GOT ME A COUPLE OF FRIENDS THE CUSTOMER REPLIED WHEN TOLD EGGHEAD WAS A SOFTWARE STORE THE MAN SAID OH I THOUGHT YOU MEANT FOR ME TO FIND A COUPLE OF GEEKS NOT REALIZING HOW FRAGILE COMPUTERS CAN BE SOME PEOPLE END UP DAMAGING PARTS BEYOND REPAIR A DELL CUSTOMER CALLED TO COMPLAIN THAT HIS KEYBOARD NO LONGER WORKED HE HAD CLEANED IT HE SAID FILLING UP HIS TUB WITH SOAP AND WATER AND SOAKING THE KEYBOARD FOR A DAY AND THEN REMOVING ALL THE KEYS AND WASHING THEM INDIVIDUALLY COMPUTERS MAKE SOME PEOPLE PARANOID A DELL TECHNICIAN MORGAN VERGARA SAYS HE ONCE CALMED A MAN WHO BECAME ENRAGED BECAUSE HIS COMPUTER HAD TOLD HIM HE WAS BAD AND AN INVALID MR VERGARA PATIENTLY EXPLAINED THAT THE COMPUTER'S BAD COMMAND AND INVALID RESPONSES SHOULDN'T BE TAKEN PERSONALLY THESE DAYS PCHELP TECHNICIANS INCREASINGLY FIND THEMSELVES TAKING ON THE ROLE OF AMATEUR PSYCHOLOGISTS MR SHULER THE DELL TECHNICIAN WHO ONCE WORKED AS A PSYCHIATRIC NURSE SAYS HE DEFUSED A POTENTIAL DOMESTIC FIGHT BY SOOTHINGLY TALKING A MAN THROUGH A COMPUTER PROBLEM AFTER THE MAN HAD SCREAMED THREATS AT HIS WIFE AND CHILDREN IN THE BACKGROUND THERE ARE ALSO THE LONELY HEARTS WHO SEEK OUT HUMAN CONTACT EVEN IF IT HAPPENS TO BE A COMPUTER TECHIE ONE MAN FROM NEW HAMPSHIRE CALLS DELL EVERY TIME HE EXPERIENCES A LIFE CRISIS HE GETS A TECHNICIAN TO WALK HIM THROUGH SOME CONTRIVED PROBLEM WITH HIS COMPUTER APPARENTLY FEELING UPLIFTED BY THE PROCESS A LOT OF PEOPLE WANT REASSURANCE SAYS MR SHULER HOW TO SET UP SOUND CARDS AFTER INSERTING SOUND CARD IN COMPUTER USER HAS TO PUNCH IN COMMANDS ON COMPUTER SCREEN TO MAKE IT WORK MANY USERS DON'T KNOW THE COMMANDS HOW TO USE A CDROM CDROM PLAYERS ON PCS ARE CONTROLLED BY CLICKING A HANDHELD MOUSE PERPLEXED USERS WANT TO KNOW HOW TO TURN THEIR CDROM'S VOLUME UP OR DOWN WHICH IS DONE BY CLICKING THE MOUSE ONTO A VOLUME SWITCH ON THE SCREEN HOW TO GET THE COMPUTER TO TELL YOU WHY A HARDDISK DRIVE MALFUNCTIONS ESPECIALLY WHEN THE COMPUTER SAYS FILE IS LOST ALTHOUGH THE FILE MAY ACTUALLY JUST BE STUCK SOMEWHERE IN THE HARD DISK MANY USERS DON'T KNOW HOW TO GET IT ANYTHING HAVING TO DO WITH THE OPERATING SYSTEM A TYPICAL DILEMMA IN COMPUTERS WITH A WINDOWSDOS SYSTEM HOW TO SWITCH FROM A PROGRAM ON THE DOS SYSTEM TO A PROGRAM ON WINDOWS 9403010083 940301 NEC SAMSUNG ELECTRONICS ARE CLOSE TO PACT ON CHIPS TOKYO NEC CORP SAYS IT IS CLOSE TO AN AGREEMENT WITH SAMSUNG ELECTRONICS CO OF SOUTH KOREA TO JOINTLY DEVELOP A NEW GENERATION OF 256MEGABIT MEMORY CHIPS AN NEC SPOKESMAN SAID THE NEGOTIATIONS TO PRODUCE THE NEW DRAM OR DYNAMIC RANDOM ACCESS MEMORY SEMICONDUCTOR MAY BE CONCLUDED AS EARLY AS THIS MONTH AN ACCORD WOULD MARK THE FIRST TIME CHIP MAKERS FROM THESE TWO COUNTRIES WOULD JOINTLY DEVELOP ADVANCED CHIP TECHNOLOGIES ALTHOUGH THERE HAVE BEEN OTHER VENTURES BETWEEN SOUTH KOREAN AND JAPANESE CHIP MAKERS NEC IS THE WORLD'S SECONDLARGEST CHIP MAKER WHILE SAMSUNG IS THE LEADING MAKER OF THE MOST ADVANCED MEMORY CHIPS CURRENTLY SOLD THE TALKS BETWEEN THE TWO COMPANIES ARE THE LATEST SIGN OF INCREASED INTERNATIONAL COOPERATION IN CHIP DEVELOPMENT THAT IN RECENT YEARS HAS ALSO INCLUDED US AND EUROPEAN PRODUCERS THE NEC SPOKESMAN SAID THAT BY JOINING FORCES THE TWO COMPANIES HOPE TO REDUCE THE RISKS INVOLVED IN CHIP DEVELOPMENT THE COST OF DEVELOPING THE NEW CHIP MAY RUN AS HIGH AS 1 BILLION 9403010082 940301 CREDIT MARKETS BONDS REBOUND MODESTLY FROM RECENT TUMBLE AS PURCHASING INDEX TEMPERS INFLATION FEARS BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GOOD NEWS FOR THE BOND MARKET HAS BECOME A RARE COMMODITY LATELY BUT TRADERS FINALLY HAD REASON TO PUSH PRICES HIGHER YESTERDAY TRADERS SAID THAT MODESTLY SOOTHING NEWS ON INFLATION PROMPTED A MODEST ROUND OF BUYING AFTER THE HEAVY SELLING OF RECENT SESSIONS THE MARKET WAS RIPE FOR SOME KIND OF REBOUND ANYWAY TRADERS SAID THE BENCHMARK 30YEAR TREASURY BOND ROSE 5/8 POINT YESTERDAY OR 625 FOR A BOND WITH 1000 FACE VALUE TO 94 22/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE FELL TO 665 FROM FRIDAY'S 671 OTHER TREASURY MATURITIES POSTED SMALLER GAINS ALSO BOUNCING BACK AFTER NASTY SELLOFFS LATE LAST WEEK WERE THE BONDS OF MANY DEVELOPING NATIONS ESPECIALLY THOSE IN LATIN AMERICA SPARKING THE BUYING IN THE US WAS NEWS FROM THE PURCHASING MANAGEMENT ASSOCIATION SUGGESTING THAT CONCERNS ABOUT INFLATION MAY HAVE BEEN A BIT OVERDONE BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS THAT HAVE FIXED RATES OF RETURN THE CHICAGO ASSOCIATION'S INDEX OF PRICES PAID BASED ON A SURVEY OF CHICAGOAREA PURCHASERS SLIPPED TO 567 FROM LAST MONTH'S 593 A READING ABOVE 50 ON THE INDEX REFLECTS RISING PRICES THE HIGHER THE INDEX LEVEL THE FASTER THE INCREASE HOW DO YOU SPELL RELIEF SAID ALAN LEVENSON MONEYMARKET ECONOMIST AT UBS SECURITIES OF THE REPORT PEOPLE ARE NOW BRACING FOR THE WORST EVERY TIME DATA COME OUT MR LEVENSON SAID THERE WAS SO MUCH RELIEF THAT THE PRICE INDEX WENT DOWN THAT IT ALLOWED THE MARKET TO DRIFT UP ALSO LENDING SUPPORT TO THE MARKET WAS A COMMENT FROM FEDERAL RESERVE GOVERNOR LAWRENCE LINDSEY TRADERS SAID MR LINDSEY TOLD A WASHINGTON AUDIENCE THAT HE HOPED THE FED'S INCREASE IN INTEREST RATES ON FEB 4 WILL BE ENOUGH BUT ANALYSTS DOWNPLAYED THE SIGNIFICANCE OF THE REMARK THEY NOTED THAT MR LINDSEY ALSO WARNED THAT THERE ARE SIGNS OF FUTURE INFLATION PRESSURES LURKING IN RECENT INCREASES IN COMMODITY PRICES THE FED IS STILL GOING TO HAVE TO RAISE RATES SOME MORESAID MARILYN SCHAJA MONEYMARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE BULK OF THE BUYING YESTERDAY WAS BY TRADERS CLOSING OUT SHORT POSITIONS PLAYERS SAID A SHORT SALE IS A BET THAT PRICES WILL GO LOWER A TRADER SELLS A BORROWED SECURITY IN HOPES OF BEING ABLE TO REPLACE IT AT A LOWER PRICE POCKETING THE DIFFERENCE THERE WAS NOT MUCH CUSTOMER BUSINESS GOING ON SAID DANIEL CALLAHAN MANAGER OF GOVERNMENT SECURITIES TRADING AT PAINEWEBBER INC IT WAS MOSTLY PROFESSIONAL TRADING MARKET PARTICIPANTS WARNED AGAINST READING TOO MUCH INTO YESTERDAY'S INCREASE IN PRICES I WOULDN'T TAKE THIS TO MEAN PEOPLE ARE FINDING GOOD REASONS TO BUY THE MARKET ON A LONGER OR MEDIUM TERM SAID MR LEVENSON OF UBS MR CALLAHAN OF PAINEWEBBER SAID HE BELIEVED THE BOND MARKET STILL FACES SOME TOUGH GOING THE MARKET IS GOING TO GO LOWER HE SAID THERE ARE STILL TOO MANY ARGUMENTS FOR CUSTOMERS TO SHORTEN THEIR EXPOSURE TO THE MARKET INSTEAD OF TAKING ADVANTAGE OF THE HIGHER YIELDS HE SAID TRADERS AND INVESTORS WILL HAVE SEVERAL SIGNIFICANT PIECES OF INFORMATION TO HELP THEM MAKE UP THEIR MINDS OVER THE NEXT FEW DAYS THIS MORNING FOR EXAMPLE THE COMMERCE DEPARTMENT IS TO REPORT ITS REVISIONS TO FOURTHQUARTER GROSS DOMESTIC PRODUCT GROWTH ANALYSTS ARE CALLING FOR THE ORIGINALLY REPORTED 59 RATE OF GROWTH TO BE BUMPED UP TO A 67 PACE A NUMBER OF FORECASTERS BELIEVE IT COULD BE REVISED UP TO A FROTHY 7 RATE THEN AT MIDMORNING THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IS SLATED TO RELEASE ITS FEBRUARY REPORT MOST ECONOMISTS EXPECT THE NAPM INDEX WHICH TRACKS PRICES PAID BY PURCHASING MANAGERS NATIONWIDE TO RISE TO 573 FROM 577 IN JANUARY THE BIGGEST NEWS OF THE WEEK IS DUE FRIDAY WHEN THE FEBRUARY EMPLOYMENT REPORT IS TO BE RELEASED EXPECTATIONS CENTER ON A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 150000 PAYROLLS ROSE BY 62000 IN JANUARY YESTERDAY THE MARKET FOR DEVELOPINGNATION DEBT CAUGHT ITS BREATH AFTER A FEW DAYS OF HEAVY SELLING SPARKED IN PART BY RISING INTEREST RATES IN THE US JP MORGAN'S EMERGING MARKETS BOND INDEX HAD JUMPED 338 POINTS BY LATE YESTERDAY TO 19641 A GAIN OF 175 THE INDEX WHICH INCLUDES THE GOVERNMENT DEBT OF ARGENTINA MEXICO BRAZIL AND VENEZUELA AMONG OTHER NATIONS DROPPED MORE THAN 45 LAST WEEK DURING THE SELLOFF WITH THE EXCEPTION OF VENEZUELAN GOVERNMENT BONDS MOST OTHER LATIN AMERICAN GOVERNMENT BONDS AND LOANS RALLIED YESTERDAY ACCORDING TO JP MORGAN SECURITIES INC THE SOCALLED PAR BRADY BONDS FROM ARGENTINA HAD RISEN ABOUT 25 POINTS BY LATE YESTERDAY OR 25 FOR A BOND WITH 1000 FACE VALUE TO 62 1/4 BRADY BONDS ARE MADE FROM DEFAULTED LOANS RESTRUCTURED UNDER GUIDELINES SET IN PLACE BY FORMER US TREASURY SECRETARY NICHOLAS BRADY PAR BONDS ARE DEFAULTED LOANS THAT HAVE BEEN CONVERTED INTO BONDS AT FACE VALUE MEXICO'S PAR BRADY BONDS ROSE ABOUT TWO POINTS TO 75 WHILE VENEZUELA'S PAR BRADY BONDS DROPPED ABOUT 1/2 POINT THANKS IN PART TO A WEEKEND DECISION BY THE GOVERNMENT TO REMOVE ECONOMIC GUARANTEES AND PERMIT OFFICIAL PRICE FIXING SOME OF PERU'S DEFAULTED DEBT PRICES JUMPED SHARPLY AFTER FALLING LAST WEEK SOME OF PERU'S COMMERCIAL DEBT JUMPED NEARLY SIX POINTS TO 645 AFTER THE WINNING PRIVATIZATION BID FOR THE STATE PHONE COMPANY TURNED OUT TO BE FOUR TIMES WHAT WAS EXPECTED ACCORDING TO DOW JONES EMERGING MARKETS REPORT LAST WEEK PERUVIAN DEBT LOST 10 POINTS AFTER POLITICAL FEARS AND BEARISH ANALYST PREDICTIONS SLAMMED INTO THE PAPER YESTERDAY AFTERNOON SHARES IN TWO STATE PHONE COMPANIES WERE SOLD TO A CONSORTIUM HEADED BY TELEFONICA DE ESPANA FOR MORE THAN 2 BILLION MORE THAN FOUR TIMES THE BASE PRICE OF 535 MILLION THE SECOND AND THIRDHIGHEST BIDS WERE FAR BEHIND IN THE 800 MILLION RANGE TRADERS SAID THE WINNING BID WOULD PROVIDE A STRONG FLOW OF FUNDS INTO PERU AND IMPROVE THE COUNTRY'S ABILITY TO PAY ITS DEBTS HERE ARE THE DETAILS FROM YESTERDAY'S US TREASURY AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 3 THE 13WEEK BILLS MATURE JUNE 2 AND THE 26WEEK BILLS MATURE SEPT 1 THE BONDS OF NEXTEL COMMUNICATIONS INC ROSE SHARPLY YESTERDAY ON NEWS THAT MCI COMMUNICATIONS CORP WILL MAKE A LARGE INVESTMENT IN THE WIRELESS SERVICES PROVIDER MCI NEXTEL AND COMCAST CORP FORMED A STRATEGIC ALLIANCE TO BEGIN OFFERING MCI WIRELESS PERSONAL COMMUNICATIONS SERVICES THIS YEAR WITH THE TECHNOLOGY PLATFORM PROVIDED BY MOTOROLA INC NEXTEL'S ZEROCOUPON BONDS MATURING IN 2004 TRADED UP SIX POINTS ON THE NEWS OR 60 FOR A BOND WITH A 1000 FACE VALUE TO 66 THE YIELD DROPPED TO 913 FROM 102 ZEROCOUPON BONDS PAY NO INTEREST AND ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE OTHERWISE MORE THAN 1 BILLION OF DEBT WAS PRICED DURING YESTERDAY'S SESSION ALL OF IT WAS SOLD BY FEDERAL AGENCIES EXCEPT FOR A 100 MILLION OFFERING FROM CIT GROUP HOLDINGS INC TODAY ONTARIO HYDRO IS EXPECTED TO LAUNCH A C1 BILLION 740 MILLION FLOATINGRATE GLOBAL BOND OFFERING IT WILL MARK THE FIRST CANADIANDOLLARDENOMINATED FLOATINGRATE NOTE SOLD BY A CANADIAN ISSUER THE LEAD MANAGERS FOR THE DEAL ARE MERRILL LYNCH & CO AND WOOD GUNDY CORP ALSO THE BANK OF CHINA IS IN THE MARKET WITH A YANKEE BOND THAT IS EXPECTED TO BE SOLD THURSDAY THE 500 MILLION TWOPART OFFERING WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ONE PART WILL MATURE IN SEVEN OR 10 YEARS AND THE OTHER WILL MATURE IN 20 TO 30 YEARS TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY LIGHT WITH PRICES FOLLOWING TREASURYS UP YIELD SPREADS OVER COMPARABLE TREASURY SECURITIES WERE ONLY SLIGHTLY WIDER BY THE END OF THE DAY IN THE JUNKBOND MARKET TRADING WAS QUIET OUTSIDE THE CABLE INDUSTRY JUNK BONDS IN GENERAL WERE DOWN ABOUT 1/8 POINT EXCEPT FOR CABLE BONDS WHICH WERE UP ABOUT 1/2 POINT IN SYMPATHY WITH NEXTEL'S BONDS MUNICIPAL BONDS WERE MIXED AS THE MARKET TRIED TO STABILIZE AFTER RECENT DECLINES AMONG ACTIVELY TRADED ISSUES THE VIRGINIA HOUSING DEVELOPMENT AUTHORITY'S 59 OF 2021 BONDS WERE LITTLE CHANGED AT 97 1/4 TO 97 3/4 IN LATE DEALINGS YIELDING ABOUT 607 TRADERS SAY EVEN THOUGH SALES HAVE FADED SOME MUNI SPECIALISTS SAY THE MARKET'S FIRM TONE SEEMS TENTATIVE WITH CONCERNS LINGERING ABOUT FURTHER FED TIGHTENING TRADERS WILL BE ON THE LOOKOUT FOR SIGNS OF UNEXPECTED STRENGTH IN ECONOMIC REPORTS RELEASED THIS WEEK THE LATEST WAVE OF MUNI ISSUES WILL ALSO BE IN FOCUS IN TODAY'S SESSION BIDS ARE TO BE TAKEN FOR OFFERINGS INCLUDING NEW YORK STATE'S 2241 MILLION IMPROVEMENT BONDS WHICH MAY GIVE AN INDICATION OF THE LEVEL OF DEMAND IN THE MARKET MORTGAGESECURITIES PRICES ENDED FIRM BUT GAINS LAGGED BEHIND INTERMEDIATE TREASURYS AND APPEARED TO RESULT FROM A SELLING RESPITE RATHER THAN THE START OF ANOTHER STRONG RALLY IN SECONDARY TRADING OF 7 MORTGAGE SECURITIES FOR MARCH DELIVERY GINNIE MAES WERE 8/32 HIGHER AT 100 8/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE UP 7/32 AT 100 12/32 AND 100 6/32 RESPECTIVELY TENYEAR TREASURY NOTES MEANWHILE WERE 12/32 STRONGER THE ECONOMY'S VITALITY ISN'T THE ONLY FACTOR MORTGAGEMARKET PLAYERS ARE SCRUTINIZING THE NEXT WAVE OF PREPAYMENT DATA STARTS ROLLING OUT TODAY MIDJANUARY TO MIDFEBRUARY FEDERAL HOME LOAN MORTGAGE CORP PREPAYMENT FIGURES ARE TO BE REPORTED FOLLOWED ON MONDAY BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION AND FEDERAL NATIONAL MORTGAGE ASSOCIATION PREPAYMENT DATA FOR THE FULL MONTH OF FEBRUARY A FEBRUARY SLOWDOWN IS EXPECTED FOLLOWED BY A BRIEF UPTURN IN EARLY SPRING AND THEN A CONSIDERABLE PREPAYMENT SLIDE IN LATE SPRING AS A RESULT OF CURRENT MORTGAGERATE HIKES 9403010081 940301 WHO'S NEWS WESBANCO INC WESBANCO INC WHEELING WVA THIS BANKHOLDING COMPANY SAID IT COMPLETED THE ACQUISITION OF FIRST FIDELITY BANCORP INC FAIRMONT WVA IN A STOCK SWAP VALUED AT MORE THAN 60 MILLION AS A RESULT WESBANCO NAMED FOUR NEW DIRECTORS WHO WERE DIRECTORS OF FIRST FIDELITY ROBERT H MARTIN 60 YEARS OLD WHO WAS FIRST FIDELITY'S CHAIRMAN AND HAS BEEN NAMED WESBANCO'S VICE CHAIRMAN PATRICK L SCHULTE 61 WHO WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST FIDELITY AND HAS BEEN NAMED EXECUTIVE VICE PRESIDENT OF WESBANCO FRANK K ABRUZZINO 50 WHO WAS PRESIDENT AND CHIEF EXECUTIVE OF FIRST FIDELITY SUBSIDIARY FIRSTBANK SHINNSTON AND RETAINS THOSE POSTS AND EARL C ATKINS WHO WAS CHAIRMAN OF FIRST FIDELITY SUBSIDIARY CENTRAL NATIONAL BANK AND RETAINS THAT POST THE APPOINTMENTS BRING THE NUMBER OF DIRECTORS TO 27 9403010077 940301 CHEMICAL FIRMS GETTING NEWEQUIPMENT DIRECTIVE WASHINGTON AP FOLLOWING UP ON THE 1990 CLEAN AIR LAW THE ENVIRONMENTAL PROTECTION AGENCY IS ORDERING CHEMICAL COMPANIES TO INSTALL NEW EQUIPMENT TO CAPTURE MILLIONS OF POUNDS OF TOXIC POLLUTION THE FINAL REQUIREMENTS ARE SCHEDULED TO BE ANNOUNCED BY EPA ADMINISTRATOR CAROL BROWNER TODAY TO MEET A COURTIMPOSED DEADLINE THE REQUIREMENTS ARE AIMED AT CUTTING TOXIC RELEASES INTO THE AIR AT MORE THAN 350 CHEMICAL PLANTS MANY OF THEM IN TEXAS LOUISIANA AND NEW JERSEY THE EPA IS ESTIMATING THAT AS MUCH AS ONE BILLION POUNDS OF TOXIC RELEASES MIGHT BE CAPTURED ALTHOUGH ENVIRONMENTALISTS SAID THAT FIGURE MIGHT BE HIGH CHEMICAL COMPANIES HAVE ANTICIPATED THE REQUIREMENTS AND MANY OF THEM ALREADY HAVE INSTALLED SOME OF THE EQUIPMENT TO MEET THE NEW RULES ACCORDING TO INDUSTRY OFFICIALS UNDER THE 1990 CLEAN AIR ACT THE NEW REGULATIONS WERE TO HAVE BEEN IN PLACE BY NOVEMBER 1992 WHEN THE BUSH ADMINISTRATION SHOWED NO SIGN OF MEETING THE DEADLINE TWO ENVIRONMENTAL GROUPS SUED AND WON A COURT ORDER SETTING A NEW TIMETABLE FOR ISSUING THE REQUIREMENTS THE EPA'S LATEST ACTION IS TO COMPLY WITH THE COURT ORDER 9403010076 940301 WHO'S NEWS SPIEGEL INC SPIEGEL INC CHICAGO JAMES W SIEVERS 51 YEARS OLD FORMERLY SENIOR VICE PRESIDENT FINANCE AND OPERATIONS AT SPIEGEL'S EDDIE BAUER UNIT WAS NAMED CHIEF FINANCIAL OFFICER OF THIS SPECIALTY RETAILER SUCCEEDING ALTON M WITHERS 67 WHO IS RETIRING 9403010075 940301 A NEW MIX CONGLOMERATES MAKE A SURPRISING COMEBACK WITH A '90S TWIST MANY FOCUS ON FEWER LINES OF BUSINESS EMPHASIZE EFFORTS TO REDUCE COSTS PREDICTING AN URGE TO MERGE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL TEXTRON INC HAS SOLD 24 BUSINESSES FROM FOUNDRIES TO FLATWARE SINCE 1985 AND IS DEEMPHASIZING FINANCIAL SERVICES TO CONCENTRATE ON MANUFACTURING ITS REVENUE IS AT RECORD LEVELS ITS EARNINGS HAVE DOUBLED SINCE IT BEGAN STREAMLINING AND ITS STOCK IS UP 201 FROM ITS 1990 LOW ITT CORP HAS SOLD 240 COMPANIES SINCE 1979 INCLUDING MAKERS OF PERFUME AND HOSTESS TWINKIES WITH ONLY A FEW BUSINESSES LEFT ITT BOUNCED BACK FROM A 1992 LOSS AND EARNED 913 MILLION LAST YEAR AND ITS STOCK IS UP 141 FROM ITS 1990 LOW AND ALLIEDSIGNAL INC HAS REDUCED ITS BUSINESS UNITS TO 32 FROM 49 IN THE PAST FOUR YEARS OPERATING PROFITS OF THE ONCEPERENNIAL CORPORATE ALSORAN HAVE CLIMBED 20 A YEAR FOR THREE YEARS DESPITE FLAT REVENUE AND ITS STOCK IS UP 207 FROM ITS 1990 LOW IN SHORT SOME CONGLOMERATES ARE MAKING A COMEBACK WITH IMPORTANT DIFFERENCES FROM THEIR HALCYON DAYS IN THE 1960S CONGLOMERATES CORPORATIONS MADE UP OF DOZENS OR EVEN HUNDREDS OF DISPARATE COMPANIES WERE ALL THE RAGE JAMES LING GAINED FAME BUILDING LINGTEMCOVOUGHT AFTER STARTING OUT BY SELLING STOCK FROM A BOOTH AT THE TEXAS STATE FAIR IN A MIX OF FEAR AND MOCKERY CHARLES BLUHDORN'S GULF & WESTERN INDUSTRIES WAS SATIRIZED AS ENGULF & DEVOUR ULTIMATELY THE OLD CONGLOMERATES BECAME HOPELESSLY UNWIELDY LTV'S 1986 BANKRUPTCY WAS THE NADIR AND NOW FEW FLAMBOYANT ACQUIRERS SIMILAR TO LTV'S MR LING OR ITT'S HAROLD GENEEN IN THE 1960S ARE BUILDING NEW CONGLOMERATES BUT A FUNNY THING HAPPENED ON THE WAY TO THE CORPORATE GRAVEYARD A NEW GENERATION OF MANAGEMENT REALIZED THAT THE PROBLEM WASN'T NECESSARILY WITH THE CONGLOMERATE CONCEPT THE IDEA THAT COMPANIES COULD GROW BY ACQUIRING DISPARATE BUSINESSES AND THEREBY ACHIEVE SOME PROTECTION FROM THE CYCLES OF A SINGLE INDUSTRY THEY CONCLUDED THAT THE CONCEPT HAD SIMPLY CAREENED OUT OF CONTROL TODAY THESE CONGLOMERATE CHIEF EXECUTIVES INCLUDING JAMES HARDYMON AT TEXTRON LAWRENCE A BOSSIDY AT ALLIEDSIGNAL AND RICHARD SMITH AT HARCOURT GENERAL INC ARE FOCUSING ON A RELATIVELY FEW RATHER THAN MANY BUSINESSES WHILE SLOWING ACQUISITIONS THEY ARE WORKING HARDER ON THE NITTYGRITTY JOB OF IMPROVING PRODUCTIVITY HANDSON MANAGEMENT COST CUTTING AND SELECTIVE PRUNING ARE IN VOGUE LIKE THEIR FOREBEARS THE NEW CONGLOMERATE CHIEFS ARE PROMISING THAT THEIR VARIOUS BUSINESSES WILL CREATE SYNERGIES WITH ONEPLUSONE MAKING MORE THAN TWO AND THEY SEEM TO BE FINDING SOME WE'RE ALL FOCUSING A LITTLE BIT MORE AND I BELIEVE BECOMING A LITTLE EASIER TO UNDERSTAND SAYS MR HARDYMON TEXTRON'S CHAIRMAN SINCE COMING TO TEXTRON FROM EMERSON ELECTRIC CO IN 1990 HE HAS DONE MORE THAN SELL OFF BUSINESSES HE ALSO HAS MADE ACQUISITIONS BUT THEY ARE FEWER THAN IN THE PAST AND ARE GEARED TOWARD ENHANCING EXISTING LINES TWO MAJOR ONES CESSNA AIRCRAFT FOR 600 MILLION AND THE PLASTICS OPERATIONS OF CHRYSLER CORP'S ACUSTAR PARTS UNIT FOR 138 MILLION BUT IN ADDITION MR HARDYMON IS PRESSING TEXTRON'S REMAINING UNITS FROM HELICOPTERS TO GOLF CARTS TO BETTER MANAGE CASH FLOW AND CONTROL INVENTORIES MOREOVER HE BRINGS TOGETHER TWICE A YEAR TEXTRON'S DIVISION HEADS WHO USED TO SEE LITTLE OF EACH OTHER HE ALSO HAS STARTED TRAINING PROGRAMS THAT DRAW IN OTHERS FROM VARIOUS GROUPS WE'VE HAD MOST OF OUR MANUFACTURING GROUPS VISIT TWO AUTOPARTS DIVISIONS TO LEARN HOW THEY TURN INVENTORIES 70 TIMES A YEAR HE SAYS THAT HELPS TRYING TO GET THROUGHPUT INSTEAD OF TAKING 24 MONTHS TO BUILD A HELICOPTER IT'S NOW 14 AND WE'RE PUSHING FOR 12 DESPITE BUYING ACUSTAR LAST YEAR TEXTRON CUT INVENTORIES BY 100 MILLION AND FREED UP CASH AT ALLIEDSIGNAL PRODUCTIVITY ROSE 56 IN 1992 AND MR BOSSIDY CHAIRMAN OF THE MORRISTOWN NJ COMPANY HAS SET A GOAL OF 6 IMPROVEMENT A YEAR FOREVER ALLIEDSIGNAL'S SUCCESS IS PARTLY DUE TO SYNERGY EDWIN L WILLIAMS JR MANAGER OF ITS CHEMICAL PLANT IN CATOOSA OKLA HAD NEVER SEEN ONE OF THE COMPANY'S AUTOMOTIVE OPERATIONS BEFORE LAST YEAR MUCH LESS CONSIDERED THEM WORTHY OF SCRUTINY BUT WHEN AN AUTOMATED PRODUCTION LINE HE INSTALLED KEPT FAILING MR WILLIAMS HEEDED DIRECTIONS FROM CORPORATE HEADQUARTERS TO STEP UP COOPERATION AND HE SOUGHT ADVICE FROM ALLIED'S FRAM DIVISION WHICH MAKES OIL FILTERS FOR CARS AND HAD INSTALLED A SIMILAR LINE IN JUST TWO DAYS CATOOSA AND FRAM ENGINEERS AGREED ON A DOZEN STEPS AND THEY INSTALLED SENSORS THAT PINPOINTED WHERE MALFUNCTIONS WERE OCCURRING NOW CATOOSA COATS WITH CHEMICALS 10 MILLION CATALYTIC CONVERTERS A YEAR UP FROM FOUR MILLION IN 1989 WHILE THE PAYROLL HAS GROWN ONLY TO 160 FROM 130 IT HAS CUT INVENTORIES 30 A YEAR FOR THE PAST THREE YEARS WHILE TRIMMING OVERTIME AND IMPROVING JOB SAFETY AT ITT CHAIRMAN RAND ARASKOG HAS SPENT A DECADE UNWINDING A MORASS OF BUSINESSES CREATED BY MR GENEEN MR ARASKOG WHO ALSO IS A DIRECTOR OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER IS CUTTING CORPORATE OVERHEAD BUILT UP DURING ITT'S EXPANSION INCLUDING 1000 OF 4000 STAFFERS AT HEADQUARTERS AND OPERATING DIVISIONS ITT NOW HAS JUST 250 PEOPLE IN NEW YORK CITY DOWN FROM MORE THAN 3000 10 YEARS AGO THE CORPORATERELATIONS STAFF ONCE 150 STRONG IS DOWN TO THREE OF COURSE SOME CORPORATE GIANTS THAT ARE HIGHLY DIVERSIFIED BUT NEVERTHELESS AREN'T GENERALLY CONSIDERED CONGLOMERATES HAVE POSTED STRONG SALES AND EARNINGS GROWTH ALL ALONG AN OUTSTANDING EXAMPLE IS GENERAL ELECTRIC CO WHICH OPERATES IN A WIDE RANGE OF INDUSTRIES FROM RAILROAD LOCOMOTIVES TO AIRCRAFT ENGINES TO BROADCASTING TO FINANCIAL SERVICES YET MANY CONGLOMERATES ARE STILL FINDING IT HARD TO INCREASE REVENUE ERIC OLSEN A VICE PRESIDENT OF BOSTON CONSULTING GROUP SAYS THAT OF 15 CONGLOMERATES THAT HE HAS STUDIED AND THAT HAVE OUTPERFORMED THE STOCK MARKET IN THE PAST TWO YEARS ONLY TWO POSTED SIGNIFICANT SALES GROWTH AND THAT IS A MAJOR PROBLEM HOWEVER REWARDING GAINS IN SHAREHOLDER RETURNS CAN BE FOR SEVERAL YEARS COMPANIES EVENTUALLY NEED TO GROW TO CREATE OPPORTUNITIES FOR AND KEEP TALENTED EMPLOYEES IF YOU HAVEN'T GOT GROWTH IT'S DIFFICULT TO ADD VALUE FOR A LONG PERIOD OF TIME MR OLSEN SAYS SO AS CONGLOMERATES GET STRONGER HE PREDICTS THE URGE TO MERGE AS A WAY OF GROWING AND DIVERSIFYING IS LIKELY TO REVIVE OVER THE LONG HAUL WITH ANY COMPANY THERE'S A FIVETO10YEAR EVOLUTION OF FOCUSING DOWN AND THEN WHEN YOU'VE MAXIMIZED THE POTENTIAL YOU'RE REQUIRED TO MAKE A LEAP INTO A NEW AREA HE SAYS MOREOVER EXECUTIVES AT CONGLOMERATES SAY GOOD ONES CAN OUTDO SINGLEINDUSTRY COMPANIES BEING CONCENTRATED IN ONE INDUSTRY IS GREAT IF YOU'RE COCACOLA SAYS THOMAS KING CHAIRMAN AND PRESIDENT OF STANDEX INTERNATIONAL CORP A SMALL CONGLOMERATE BASED IN SALEM NH BUT IT'S NOT SO GREAT IF YOU'RE WANG LABORATORIES WANG TIED TO A NARROW DATAPROCESSING LINE SUSTAINED HUGE LOSSES AND SLIPPED INTO BANKRUPTCY PROCEEDINGS FROM WHICH IT RECENTLY EMERGED STANDEX BY CONTRAST HAS BUSINESSES RANGING FROM SHOPPINGCART CASTERS TO MAILORDER GRAPEFRUIT AND RELIGIOUS TRACTS NET INCOME ROSE A TIDY 9 TO A RECORD 24 MILLION LAST YEAR ON 506 MILLION IN SALES SPURRING CONGLOMERATE CHIEFS TO SIMPLIFY OPERATIONS HOWEVER ARE TRENDS IN EXECUTIVE PAY MORE THAN EVER MANAGEMENT COMPENSATION IS TIED TO STOCK PERFORMANCE SAYS JACK KELLY AN ANALYST AT GOLDMAN SACHS & CO THIS SPRING FOR EXAMPLE ITT SHAREHOLDERS WILL VOTE ON AN INCENTIVE PLAN INVOLVING LARGE STOCK OPTIONS AT 92 THAT EXECUTIVES CAN EXERCISE WHEN THE PRICE HITS 115 AND 12880 ITT'S STOCK CLOSED YESTERDAY AT 96875 UP 1125 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AFTER SELLING OFF 240 COMPANIES ITT'S MR ARASKOG REALIGNED ITS BUSINESS INTO FOUR LINES MANUFACTURED PRODUCTS INSURANCE AND FINANCIAL RAYONIER FOREST PRODUCTS AND SHERATON HOTELS YESTERDAY ITT COMPLETED A SPINOFF TO ITS SHAREHOLDERS OF THE RAYONIER OPERATION IN A MOVE THAT ANALYSTS SAY WILL REDUCE CYCLICALITY AND REMOVE A UNIT THAT SUCKS UP CAPITAL WHILE WE SAW STRENGTH IN BEING A CONGLOMERATE WE SAW ADDITIONAL STRENGTH IN BEING A LITTLE LESS OF A CONGLOMERATE SAYS JAMES GALLAGHER A SPOKESMAN MOST CORPORATE CHIEFS HAVE STRONG INCENTIVES TO DISPOSE OF WEAK UNITS AND RAISE EARNINGS PER SHARE BUT THOSE AT CONGLOMERATES HAVE MORE UNITS TO DISCARD NOW WITH STOCK APPRECIATION PARAMOUNT MAYBE YOU CONSIDER A SPINOFF OF A POOR PERFORMER MR KELLY SAYS RESPONDING TO CONGLOMERATES' PRUNING AND THE PROSPECTS FOR FURTHER ACTIONS THEIR STOCKS HAVE BEEN REBOUNDING FROM THEIR DEPRESSED LEVELS OF A FEW YEARS AGO JACK MODZELEWSKI A CONGLOMERATE ANALYST AT PAINEWEBBER INC SAYS THE STOCKS HE FOLLOWS ROSE 25 LAST YEAR AND 20 IN 1992 COMPARED WITH CONSECUTIVE GAINS OF 7 AND 5 FOR THE STANDARD & POOR'S 400 INDUSTRIALS VALUE LINE THE INVESTMENT SERVICE SAYS DIVERSIFIEDCOMPANY SHARES HAVE BEATEN THE OVERALL MARKET SINCE 1991 WHILE THE GROUP'S PRICETOEARNINGS RATIO A KEY BAROMETER FOR INVESTORS IS NEARING THAT OF THE MARKET AFTER LAGGING BEHIND IT FOR MUCH OF THE 1980S EVERY INVESTOR MAY HOPE THAT CONGLOMERATES THAT PARE DOWN WILL END UP AS GULF & WESTERN DID THE ERSTWHILE CONGLOMERATE SOLD CLOSED OR SPUN OFF FARFLUNG UNITS AND RENAMED PARAMOUNT COMMUNICATIONS INC RECENTLY AGREED TO BE ACQUIRED BY VIACOM INC FOR ABOUT 79 A SHARE IT WAS AT 10 A SHARE 10 YEARS AGO BUT HOLDERS OF CONGLOMERATE STOCKS CAN'T COUNT ON GETTING SUCH A BONANZA THE COMPANIES HAVE A WAY OF STICKING AROUND RESHAPING THEMSELVES AND DEFYING PREDICTIONS OF THEIR DISSOLUTION TAKE DOVER CORP A NEW YORK COMPANY THAT HAS 60 BUSINESSES AND MAKES ELEVATORS PUMPS AND PETROLEUM EQUIPMENT AMONG OTHER THINGS IT AVERAGES A 19 RETURN ON EQUITY AND ITS STOCK HAS DOUBLED IN MARKET VALUE EVERY FIVE YEARS DOVER ALSO HAS REPORTED 15 ANNUAL GROWTH IN REVENUE TO 24 BILLION LAST YEAR THANKS TO STEADY EXPANSION OF ITS EXISTING BUSINESSES AND AN ACQUISITION PROGRAM THAT IS OPPORTUNITYBASED SAYS JOHN MCNIFF CHIEF FINANCIAL OFFICER ALTHOUGH DOVER WOULD APPEAR TO OPERATE LIKE AN OLDLINE CONGLOMERATE MR MCNIFF BRISTLES AT THE LABEL WE STICK TO MANUFACTURED INDUSTRIAL PRODUCTS HE SAYS LAST YEAR THE COMPANY SPUN OFF TO SHAREHOLDERS AN ELECTRONICS UNIT IN A MOVE TO TIGHTEN ITS FOCUS BUT NOT HESITATING TO GO BEYOND ITS EXISTING PRODUCT LINES ALSO ACQUIRED HEIL CO A MAKER OF GARBAGE TRUCKS WE'RE ALWAYS ACTIVE AND ALWAYS HOPEFUL MR MCNIFF SAYS 9403010074 940301 WHO'S NEWS STATORDYNE CORP STATORDYNE CORP ANAHEIM CALIF JAMES E DAUGHERTY WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER OF PROPRIETARY PRODUCTS FOR THE POWER QUALITY STANDBY AND NOBREAK POWER SERVICE INDUSTRIES HE SUCCEEDS BRUCE PEASLAND 47 YEARS OLD WHO RESIGNED MR DAUGHERTY 42 PREVIOUSLY WAS VICE PRESIDENT FINANCE CHIEF FINANCIAL OFFICER SECRETARY AND TREASURER OF PEAC CORP 9403010073 940301 WHO'S NEWS MORGAN STANLEY GROUP INC MORGAN STANLEY GROUP INC NEW YORK CRAIG S PHILLIPS 38 YEARS OLD WAS NAMED A MANAGING DIRECTOR AND HEAD OF THE MORTGAGEBACKED SECURITIES DEPARTMENT AT THE INVESTMENT BANKING COMPANY HE ALSO WILL MANAGE A JOINT VENTURE WITH THE REALESTATE DEPARTMENT CONCENTRATING ON SECURITIZATION OF COMMERCIAL MORTGAGES MR PHILLIPS HAD BEEN A MANAGING DIRECTOR AND COHEAD OF THE MORTGAGE DEPARTMENT AT FIRST BOSTON INC HE SUCCEEDS CHARLES JOHNSTON WHO CONTINUES TO HEAD MORTGAGEBACKED SECURITIES TRADING AND RISK MANAGEMENT 9403010072 940301 HUD'S BIG LEAP HOUSING POLICY AND THE HOMELESS' BY HOWARD HUSOCK WORD IS OUT THAT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGING CLEARLY UNDER SECRETARY HENRY CISNEROS AS THE MOST TRADITIONALLY LIBERAL OF THE CABINET AGENCIES IN THE CLINTON ADMINISTRATION WILL TERM HOMELESSNESS A CHRONIC PROBLEM OF SUCH SCALE AS TO CALL FOR A MAJOR INCREASE IN FEDERAL HOUSING ASSISTANCE A DRAFT OF THE REPORT PRIORITY HOME THE FEDERAL PLAN TO END HOMELESSNESS SAYS THAT WERE HUD TO BE SPENDING WHAT IT SHOULD ITS BUDGET WOULD RISE NO LESS THAN 15 BILLION A YEAR KEY TO SUCH PROJECTIONS IS THE ASSERTION THAT HOMELESSNESS EXISTS ON A FAR BROADER SCALE THAN PREVIOUS ADMINISTRATIONS HAVE ESTIMATED PREVIOUS ESTIMATES OF 600000 HOMELESS ON THE STREETS ON ANY GIVEN NIGHT ARE DWARFED BY A NEW FIGURE SEVEN MILLION AMERICANS ARE SAID TO HAVE BEEN HOMELESS AT SOME POINT IN THE LATE 1980S HOW CAN THERE BE SUCH A DISPARITY UNDERLYING THE NEW FIGURE IS THE VIEW THAT HOMELESSNESS SHOULD BE DEFINED EXPANSIVELY THAT IT MUST GO BEYOND THE MENTALLY ILL AND THE SUBSTANCE ABUSER LIVING ON THE STREET SO AS TO INCLUDE THOSE INDIVIDUALS AND FAMILIES WHO CAN BE SAID TO BE IN DANGER OF NOT HAVING THEIR OWN RESIDENCE THUS A SINGLE MOTHER SHARING AN APARTMENT WITH HER OWN MOTHER MIGHT BE CONSIDERED HOMELESS TWO FAMILIES DOUBLED UP WITH TWO OR THREE CHILDREN SHARING A BEDROOM SIMILARLY EXEMPLIFY THIS EXPANSIVE DEFINITION MOREOVER SOMEONE WITHOUT SUFFICIENT SAVINGS TO PAY SEVERAL MONTHS' RENT IF HE WERE TO LOSE HIS JOB CAN BE CLASSED AS BEING IN DANGER OF BECOMING HOMELESS THE BUDGETARY AND SOCIAL POLICY IMPLICATIONS OF THIS EXPANSIVE DEFINITION ARE PROFOUND THE TERM HOMELESSNESS MUST NOT BE ALLOWED TO MASK WHAT IS REALLY GOING ON A PROPOSAL FOR A MAJOR EXPANSION OF FEDERAL HOUSING ASSISTANCE THE EXPANSION IS NOT PREDICATED ON AN INCREASE IN THE NUMBERS OF THOSE ACTUALLY LIVING ON THE STREETS INSTEAD IT WOULD TARGET THOSE WHO MAY SIMPLY BE HOUSED AT LESS THAN HUD ACCOMMODATION STANDARDS AND THOSE AMONG THE WORKING POOR WHO LIVE NOW WITH SOME FORM OF HOUSING INSECURITY THERE IS GOOD REASON TO BE DUBIOUS THAT HOUSING SUBSIDIES WHETHER IN THE FORM OF NEW OR RENOVATED FEDERALLY SUBSIDIZED APARTMENT COMPLEXES OR IN THE FORM OF MORE WIDELY AVAILABLE HOUSING VOUCHERS ARE GOOD POLICY IN EITHER CASE HOUSING REFORMERS HAVE LONG RECOILED AT THE IDEA OF CHILDREN CROWDED INTO TENEMENTS OR WORSE CHILDREN SHARING BEDROOMS WITH PARENTS BUT OVERCROWDING CAN ALSO BE SEEN AS A WAY EXTENDED FAMILIES MARSHAL THEIR FINANCIAL RESOURCES AS PART OF THE EFFORT OF UPWARD MOBILITY HISTORICALLY IT HAS BEEN COMMON FOR POOR FAMILIES TO SHARE ACCOMMODATIONS WITH INLAWS AND GRANDPARENTS AS WELL AS TO TAKE IN BOARDERS IMMIGRANT FAMILIES TODAY CONTINUE THESE TRADITIONS IT MAY SEEM INSENSITIVE TO SUFFERING TO VIEW SUCH CROWDING AS BENEFICIAL IN THE LONG RUN BUT CONSIDER THE IMPLICATIONS OF THE ALTERNATIVES BOTH FOR THOSE ALREADY ON PUBLIC ASSISTANCE AND FOR THE WORKING POOR PROVIDING APARTMENTS OR HOUSING ASSISTANCE FOR SINGLE MOTHERS FOR INSTANCE MAY BE SEEN AS YET ANOTHER REWARD/INCENTIVE FOR OUTOFWEDLOCK BIRTHS JUST AS IMPORTANT PROVIDING SECTION 8 HOUSING CERTIFICATES TO POOR FAMILIES SO THEY CAN SCATTER TO AVAILABLE QUARTERS IN NONPOOR NEIGHBORHOODS UNDERMINES THE INCENTIVE STRUCTURE FOR THOSE FAMILIES WHO MUST STRIVE AND SAVE TO REACH THESE SAME NEIGHBORHOODS MOREOVER HOUSING SUBSIDIES CAN CREATE THEIR OWN ABUSES A JUNE 1993 CITY OF BOSTON STUDY ON SUBSIDIZED HOUSING/ABSENTEE LANDLORD ISSUES FOUND A WIDESPREAD COMMUNITY VIEW OF ABSENTEE LANDLORDS RENTING UNITS TO SUBSIDIZED TENANTS AT RENT LEVELS SUBSTANTIALLY HIGHER THAN MARKET RATES AND OF SUBSIDIZED TENANTS WHO WITHOUT THE FINANCIAL STAKE THAT ARISES FROM PAYING ONE'S OWN WAY WERE ACTING OUT AND DISRUPTING COMMUNITY LIFE IF IT HOPES TO AVOID BOTH COMMUNITY RESENTMENT AND A MAJOR NEW INFUSION OF FEDERAL SUBSIDY DOLLARS THE CLINTON ADMINISTRATION WOULD DO WELL TO CONSIDER ALTERNATIVES TO MAJOR NEW HOUSING CONSTRUCTION OR ASSISTANCE PROGRAMS FIRST THE ADMINISTRATION SHOULD STOP CONFLATING THE LEVELS OF THE TRULY HOMELESS WITH THOSE WHO ARE SIMPLY NOT HOUSED TO REFORM STANDARDS AT THE SAME TIME IT SHOULD CONSIDER WAYS OF INCREASING THE SUPPLY OF HOUSING FOR BOTH THE TROUBLED HOMELESS AND THOSE WHO HAVE DIFFICULTY AFFORDING THEIR OWN RESIDENCES SOCIETY HAS AN OBLIGATION TO HELP THOSE THE MENTALLY ILL THE DRUG AND ALCOHOL ABUSERS UNABLE TO COPE IF WE REJECT THE TRADITION OF LARGE INSTITUTIONS FOR THESE UNFORTUNATES WE CAN MOVE TOWARD THE EMERGING MODEL OF INEXPENSIVE SINGLEROOM OCCUPANCY HOTELS COMBINED WITH TREATMENT AND COUNSELING FACILITIES HUD CAN ENCOURAGE LOCAL JURISDICTIONS TO PERMIT CONSTRUCTION OF SUCH SROS IN APPROPRIATE LOCATIONS AND WITH LIMITED AMENITIES SO AS TO PERMIT PRIVATE BUILDERS TO PROVIDE THEM AT THE SAME TIME IT CAN USE ITS OFFICES TO SUGGEST WAYS TO INCREASE THE SUPPLY OF HABITABLE NONSUBSIDIZED HOUSING WITHIN POOR NEIGHBORHOODS FOR THOSE WHO HAVE DIFFICULTY AFFORDING THEIR OWN RESIDENCES LOCAL STANDARDS MIGHT ALLOW FOR MINIMALIST RENOVATION OF OLDER HOUSING AS THE ENTERPRISE FOUNDATION HAS PERSUADED BALTIMORE TO COUNTENANCE IN OTHER CASES IT MIGHT BE BETTER TO PERMIT DEMOLITION OF OLD DIFFICULTTORENOVATE APARTMENT COMPLEXES TO MAKE WAY FOR CHEAP AND UTILITARIAN REPLACEMENTS NEW YORK CITY FOR INSTANCE HAS SPENT MORE PER UNIT TO RENOVATE OLD APARTMENTS FOR SUBSIDIZED TENANTS THAN NEHEMIAH HOMES A PRIVATE BUILDER WITH CHURCHBASED FINANCING HAS SPENT TO BUILD NEW ROWHOUSES IN BROOKLYN AND THE BRONX FOR INDIVIDUAL PRIVATE OWNERS THIS IS NO TIME TO LET HOMELESSNESS BE USED AS A RALLYING CRY TO REVIVE EXPENSIVE AND COUNTERPRODUCTIVE POLICIES ESPECIALLY WHEN THERE ARE ALTERNATIVES AVAILABLE MR HUSOCK IS DIRECTOR OF CASE STUDIES AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT 9403010071 940301 POLITICS & POLICY PROSECUTION NOW CLAIMS CIA'S AMES RECEIVED 25 MILLION FROM MOSCOW BY JOE DAVIDSON AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE ILLGOTTEN GAINS THAT CIA AGENT ALDRICH AMES ALLEGEDLY RECEIVED FOR SPYING FOR MOSCOW ARE WELL OVER 25 MILLION SIGNIFICANTLY MORE THAN ORIGINALLY ESTIMATED PROSECUTORS SAID AND ACCORDING TO A PROSECUTION DOCUMENT FILED IN FEDERAL COURT IN ALEXANDRIA VA MARIA DEL ROSARIO CASAS AMES MR AMES'S WIFE HAS ADMITTED THEIR INVOLVEMENT IN ESPIONAGE ACCORDING TO THE DOCUMENT SHE ADMITTED THAT KNOWING OF HER HUSBAND'S ESPIONAGE ACTIVITIES SHE ENCOURAGED HIM TO MAKE MEETINGS WITH THE RUSSIANS AND ADVISED HIM IN CERTAIN OTHER ASPECTS OF HIS ILLEGAL CONDUCT WILLIAM CUMMINGS MRS AMES'S LAWYER SAID SHE DENIES THAT ASSERTION ADDING THAT INVESTIGATORS MAY HAVE TAKEN WIRETAPPED TELEPHONE CONVERSATIONS OUT OF CONTEXT WHEN THE CENTRAL INTELLIGENCE AGENCY OFFICER WAS ARRESTED OFFICIALS SAID HE WAS PAID 15 MILLION OVER NINE YEARS BY MOSCOW EVIDENCE RECENTLY UNCOVERED SUGGESTS THAT THEIR ILLGOTTEN GAINS' ARE SUBSTANTIALLY GREATER AND RAISE THEIR TAKE TO WELL BEYOND 25 MILLION SAID THE DOCUMENT FILED TO OPPOSE BAIL FOR MRS AMES MR AMES'S LAWYER HAD NO COMMENT THE GOVERNMENT'S LARGER ESTIMATE LENDS SUPPORT TO THE ARGUMENT MADE BY SOME INTELLIGENCE INSIDERS THAT MR AMES WAS MORE IMPORTANT TO THE RUSSIANS AND MORE DAMAGING TO US INTELLIGENCE THAN WAS DISCLOSED LAST WEEK IN THE FEDERAL BUREAU OF INVESTIGATION'S ORIGINAL CRIMINAL COMPLAINT AMONG OTHER THINGS PEOPLE FAMILIAR WITH MR AMES'S CAREER SAY HE WORKED WITH SEVERAL MAJOR SOVIET DEFECTORS DURING THE 1980S AND MORE RECENTLY TRAVELED EXTENSIVELY IN FORMER EAST BLOC COUNTRIES THE MONEY RECEIVED BY MR AMES WAS STASHED IN THREE ACCOUNTS IN SWITZERLAND SIX IN THE US ONE IN COLOMBIA AND A BNL ACCOUNT IN ITALY STILL BELIEVED TO BE THE DEPOSITORY FOR SUBSTANTIAL FUNDS ACCORDING TO THE BRIEF PREPARED BY THE US ATTORNEY'S OFFICE FOR THE EASTERN DISTRICT OF VIRGINIA BNL IS BANCA NAZIONALE DEL LAVORO THE ROMEBASED BANK WHOSE ATLANTA BRANCH HAS BEEN EMBROILED IN A SCANDAL INVOLVING LOANS MADE TO IRAQ BEFORE THE PERSIAN GULF WAR THE CIA'S INQUIRY INTO THE BNLIRAQ LINK HAS BEEN CRITICIZED AMID THE FALLOUT FROM THE AMES CASE THE RUSSIAN GOVERNMENT YESTERDAY EXPELLED A US DIPLOMAT AND REMOVED THE HEAD OF ITS COUNTERINTELLIGENCE SERVICE PRESIDENT BORIS YELTSIN'S FIRING OF NIKOLAI GALUSHKO WAS PROVOKED LESS BY THE AMES MATTER THAN BY THE RECENT RELEASE FROM PRISON OF ALEXANDER RUTSKOI AND OTHER HARDLINE FOES OF MR YELTSTIN NEWS REPORTS FROM MOSCOW SAID BUT YESTERDAY'S EXPULSION ORDER AGAINST JAMES MORRIS COUNSELOR AT THE US EMBASSY IN MOSCOW CLEARLY WAS IN RETALIATION FOR THE SIMILAR US ACTION FRIDAY AGAINST ALEKSANDR LYSENKO RUSSIA'S TOP INTELLIGENCE OFFICER IN THE US BACK IN THE US NEW INFORMATION WAS DISCLOSED ABOUT MR AMES'S CIA CAREER THAT CASTS DOUBT ON THE GOVERNMENT'S ACCOUNT OF WHEN IT BECAME SUSPICIOUS OF HIM PEOPLE FAMILIAR WITH HIS WORK SAID THAT DURING THE PAST YEAR MR AMES TRAVELED ON AGENCY BUSINESS NOT ONLY TO THE FORMER SOVIET REPUBLIC OF GEORGIA BUT ALSO TO RUSSIA AND KAZAKHSTAN HE ALSO VISITED TURKEY AND THE BALKANS ONE PERSON SAID FURTHER INFORMATION ABOUT HIS TRAVELS MAY BE DISCLOSED AT HIS ARRAIGNMENT HEARING TODAY AT THE ALEXANDRIA FEDERAL COURT WHEN MR AMES WAS ACCUSED LAST WEEK OF SPYING FOR THE RUSSIANS SINCE 1985 GOVERNMENT SOURCES TOLD REPORTERS THAT MR AMES WAS TRANSFERRED TO NARCOTICS WORK FROM COUNTERINTELLIGENCE IN 1991 BECAUSE HE HAD COME UNDER SUSPICION IT IS HIGHLY UNLIKELY THAT THE AGENCY WOULD HAVE SENT HIM TO RUSSIAN AND OTHER FORMER SOVIET BLOC NATIONS IF IT HAD REALLY ZEROED IN ON HIM AT THE TIME OF THE TRANSFER MR AMES A FORMER CHIEF OF THE SOVIET BRANCH IN THE CIA'S COUNTERINTELLIGENCE GROUP TOLD FRIENDS THAT HE REGARDED THE MOVE AS A PROMOTION FROM A FIELD THAT WAS DYING WITH THE END OF THE COLD WAR TO AN AREA THAT WAS LIKELY TO BE A GROWTH AREA AS THE CIA CAST ABOUT FOR NEW MISSIONS IN HIS NEW ASSIGNMENT PURSUING DRUG TRAFFICKING IN THE OLD EAST BLOC HE TOLD THEM HE WOULD GET A CHANCE TO VISIT THE COUNTRIES HE SPENT DECADES STUDYING OVER THE PAST 15 YEARS MR AMES WORKED WITH SEVERAL MAJOR SOVIET DEFECTORS FORMER COLLEAGUES SAID IT ALREADY IS KNOWN THAT HE DEBRIEFED VITALY YURCHENKO ONE OF THE MOST SIGNIFICANT KGB DEFECTORS EVER FOR A BRIEF PERIOD IN 1985 IN ADDITION WHILE POSTED TO NEW YORK FROM 1976 TO 1981 HE WAS A SECONDARY HANDLER OF ARKADY SHEVCHENKO A SOVIET OFFICIAL WHO WAS UNDERSECRETARY GENERAL OF THE UNITED NATIONS AND WHILE RUNNING SOVIET OPERATIONS IN THE CIA STATION IN ROME IN 1986 HE RECEIVED VIKTOR GUDAREV A SOVIET INTELLIGENCE OFFICIAL WHO HAD BEEN BASED IN ATHENS ALSO OLEG GORDIEVSKY A FORMER KGB STATION CHIEF IN MOSCOW WHO SECRETLY WORKED FOR THE BRITISH TOLD THE BBC MONDAY THAT HE NOW BELIEVES HE WAS BETRAYED TO THE SOVIETS BY MR AMES HIS INVOLVEMENT IN THOSE CASES IS SIGNIFICANT BECAUSE THE CIA'S OLDBOY NETWORK HAS WORKED OVER THE PAST WEEK TO PORTRAY MR AMES AS AN INEPT DRUNK WHO NEVER PRODUCED ANY SIGNIFICANT WORK 9403010070 940301 US JETS DOWN SERB PLANES OVER BOSNIA AS THEY VIOLATED NATO NOFLY ZONE' BY CARLA ANNE ROBBINS AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON US FIGHTER JETS SHOT DOWN FOUR SERB ATTACK PLANES AFTER THEY VIOLATED A NATOENFORCED NOFLY ZONE OVER BOSNIA THE SHOOT DOWN THE ALLIANCE'S FIRST MILITARY ENGAGEMENT IN BOSNIA AND ITS FIRST OFFENSIVE ACTION ANYWHERE IS UNLIKELY TO HAVE ANY MILITARY EFFECT ON THE CONFLICT IT COULD HOWEVER HELP TO SHIFT THE DIPLOMATIC BALANCE INCREASING THE PRESSURE ON BOSNIA'S SERBS TO ACCEPT A PEACE SETTLEMENT THAT ALREADY WOULD REWARD THEM OVERWHELMINGLY US NAVY ADM JEREMY BOORDA THE COMMANDER OF THE NORTH ATLANTIC TREATY ORGANIZATION'S SOUTHERN FLANK SAID THE ENCOUNTER WHICH TOOK PLACE OVER CENTRAL BOSNIA ABOUT 50 MILES WEST OF SARAJEVO SHOULD SEND A MESSAGE ABOUT NATO'S RESOLVE IF IT WAS A TEST I THINK WE PASSED HE SAID HE ALSO ORDERED THE US AIRCRAFT CARRIER SARATOGA WHOSE AIRCRAFT HAVE BEEN ENFORCING THE NOFLY ZONE TO CURTAIL A PORT CALL IN TRIESTE ITALY AND PUT BACK TO SEA PRESIDENT CLINTON HOWEVER PLAYED DOWN ANY SUGGESTION THAT THE ATTACK WAS A PRELUDE TO DEEPER MILITARY ACTION IN BOSNIA HE TOLD REPORTERS THAT THE SERB PILOTS WERE WARNED TWICE TO LAND BEFORE THEY WERE FIRED ON BY THE F16 FIGHTERS EVERY ATTEMPT WAS MADE TO THE BEST OF MY INFORMATION TO AVOID THIS ENCOUNTER HE SAID US AND NATO OFFICIALS SAID THE VIOLATION BY SIX SERB GALEB ATTACK JETS TWO OF WHICH ESCAPED HAD BEEN SO BLATANT THAT THEY HAD LITTLE CHOICE BUT TO ACT SINCE THE NOFLY ZONE FIRST TOOK EFFECT IN APRIL 1993 MORE THAN A THOUSAND VIOLATIONS BY ALL SIDES IN THE CONFLICT HAVE BEEN REPORTED TO THE UNITED NATIONS ALTHOUGH ALMOST ALL HAVE BEEN BY HELICOPTERS WHAT MADE YESTERDAY DIFFERENT ACCORDING TO PENTAGON AND NATO OFFICIALS IS THAT THE PLANES WERE FIXEDWING FLYING IN COMBAT FORMATION AND REFUSED DIRECT ORDERS TO LAND THEY WERE ALSO UP IN THE AIR LONG ENOUGH FOR US TO GET THEM A SENIOR US OFFICIAL SAID US OFFICIALS SAID THEY ALSO HAD PRELIMINARY REPORTS THAT THE GALEBS WHICH ARE YUGOSLAVMADE LIGHT ATTACK JETS WERE TRYING TO BOMB A BOSNIAN MUSLIM MUNITIONS DEPOT ADM BOORDA SAID THE UN HAS GIVEN HIM PRELIMINARY REPORTS THAT THE JETS APPEARED TO HAVE BOMBED BOTH A WAREHOUSE AND A HOSPITAL BEFORE THEY WERE DOWNED US OFFICIALS SAID THEY WERE PUZZLED WHY THE BOSNIAN SERBS LOFTED THEIR ATTACK JETS FOR THE FIRST TIME IN ALMOST A YEAR ONE EXPLANATION IS THAT WITH NATO NEWLY COMMITTED TO ENDING THE CONFLICT THE SERBS ARE TESTING THE LIMITS OF THAT COMMITMENT LAST MONTH WHEN CONFRONTED WITH A DIRECT NATO DEMAND TO WITHDRAW THEIR HEAVY WEAPONRY FROM AROUND SARAJEVO OR FACE AIR STRIKES THE SERBS COMPLIED SINCE THEN HOWEVER SERB MILITARY ATTACKS HAVE INCREASED AGAINST OTHER BOSNIAN TOWNS WITH NO RETALIATION THE NEXT CLEAR TEST OF WESTERN RESOLVE COULD COME AS EARLY AS NEXT WEEK WHEN THE UN WITH NATO MILITARY SUPPORT IS COMMITTED TO REOPENING THE AIRPORT AT TUZLA IN NORTHEASTERN BOSNIA FOR CRITICALLY NEEDED RELIEF SUPPLIES ANOTHER POSSIBLE EXPLANATION IS THAT THE SERBS WERE TRYING TO DRIVE A FURTHER WEDGE BETWEEN THE NATO ALLIANCE AND RUSSIA OVER BOSNIA BUT WHILE MOSCOW STRONGLY OPPOSED THE SARAJEVO AIR STRIKE ULTIMATUM IT ENDORSED YESTERDAY'S ATTACK RUSSIAN DEPUTY FOREIGN MINISTER VITALY CHURKIN SAID THAT WHICHEVER SIDE VIOLATED THE ZONE SHOULD BEAR FULL RESPONSIBILITY FOR WHAT HAS HAPPENED BOSNIAN SERB LEADER RADOVAN KARADZIC FLEW TO MOSCOW LAST NIGHT FOR SCHEDULED TALKS WITH SENIOR RUSSIAN OFFICIALS VICE PRESIDENT AL GORE TOLD REPORTERS THAT YESTERDAY'S ATTACK FAR FROM DAMAGING THE PROSPECTS FOR PEACE MAY ACTUALLY IMPROVE THE PROSPECTS FOR PEACE US OFFICIALS WHO HAVE BEEN TRYING TO BROKER A PRELIMINARY PEACE AGREEMENT BETWEEN BOSNIAN CROATS AND MUSLIMS SAID THAT NATO'S NEW TOUGHER LINE HAS ALREADY HAD A POSITIVE EFFECT OBVIOUSLY WE'RE STILL A LONG WAY FROM A PEACE SETTLEMENT SAID THE SENIOR US OFFICIAL BUT EVERYONE IS TAKING US A LOT MORE SERIOUSLY THESE DAYS A TRUCE BETWEEN BOSNIA'S CROATS AND MUSLIMLED GOVERNMENT BROKERED BY THE UN IN RECENT DAYS HAS REDUCED THE KILLING BUT NOT ENDED IT US OFFICIALS ARE HOPING TO PERSUADE THE TWO SIDES TO FORM A NEW CONFEDERATION DIVIDED INTO ETHNIC CANTONS WITH A WEAK MULTIETHNIC CENTRAL STATE SUCH AN AGREEMENT OFFICIALS SAID WOULD RAISE THE PRESSURE ON BOSNIA'S SERBS TO SIGN ON TO A PEACE AGREEMENT IT WOULD ALSO MAKE A RUMP BOSNIAN STATE MILITARILY STRONGER AND MORE ECONOMICALLY VIABLE EVEN THEN ANY PEACE AGREEMENT IS EXPECTED TO GIVE BOSNIA'S SERBS MOST OF THE LAND THAT THEY HAVE SEIZED IN TWO YEARS OF ETHNIC CLEANSING OTHER ANALYSTS ARE SKEPTICAL OF THE US EFFORT STEPHEN WALKER A FORMER STATE DEPARTMENT OFFICIAL WHO QUIT IN PROTEST OVER THE US POLICY IN BOSNIA SAID THAT US EFFORTS ARE MISDIRECTED MOST OF THE PRESSURE IS STILL ON THE BOSNIANS WHEN THE ROOT CAUSE OF THE CONFLICT IS SERBIAN AGGRESSION HE SAID 9403010069 940301 INTERNATIONAL BRIEF DAIMLERBENZ AG COMPANY SAYS ITS CHAIRMAN WILL STAY UNTIL END OF 1995 GERMANY'S DAIMLERBENZ AG SAID CHAIRMAN EDZARD REUTER WILL STAY AT THE HELM OF THE GROUP UNTIL THE END OF 1995 DISMISSING PRESS REPORTS THAT HE COULD LEAVE IN EARLY 1995 OR EARLIER SPECULATION AND RUMORS FROM OTHERS ARE GROUNDLESS AS DAIMLERBENZ AG ON MONDAY FEB 28 1994 SAYS THE STATEMENT SAID THE FINANCIAL TIMES CITING AEROSPACE INDUSTRY SOURCES REPORTED MR REUTER WILL LIKELY BECOME SUPERVISORY BOARD CHAIRMAN OF AIRBUS INDUSTRIE IN WHICH DAIMLER OWNS A 378 STAKE 9403010067 940301 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CIT GROUP HOLDINGS INC 100 MILLION OF SUBORDINATED MEDIUMTERM NOTES DUE MARCH 1 2004 PRICED AT PAR TO YIELD 698 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 81 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC CIT IS A UNIT OF CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK LTD FEDERAL HOME LOAN BANK SYSTEM 250 MILLION OF FLOATINGRATE NOTES DUE MARCH 8 1996 PRICED INITIALLY AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WILL PAY AND FLOAT QUARTERLY AT TWO BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE COUPON WILL BE SET MARCH 8 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 150 MILLION OF STEPUP NOTES DUE MARCH 14 1997 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE COUPON WILL RISE TO 575 IN MARCH 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE MARCH 7 2001 PRICED AT PAR TO YIELD 635 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE MARCH 10 2004 PRICED INITIALLY AT PAR TO YIELD 672 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO INFOSOFT INTERNATIONAL INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC AND ADAMS HARKNESS MILLICOM INTERNATIONAL CELLULAR SA 42 MILLION COMMON SHARES PRICED AT 2425 EACH THROUGH UNDERWRITERS LED BY SG WARBURG AND MORGAN STANLEY & CO NETWORK LONG DISTANCE INC INITIAL OFFERING OF 13 MILLION COMMON SHARES PRICED AT 5 EACH THROUGH UNDERWRITERS LED BY BARRON CHASE SECURITIES NORTON MCNAUGHTON INC INITIAL OFFERING OF 47 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MABON SECURITIES CORP AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 199455 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS HOME WIDE CORP JAPAN 50 MILLION SWISS FRANCS OF 0125 PRIVATELY PLACED NOTES DUE MARCH 16 1998 WITH EQUITYPURCHASE WARRANTS VIA NOMURA BANK SWITZERLAND WARRANTS EXERCISABLE FROM APRIL 5 TO FEB 27 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS TO BE FIXED MONDAY FEES 1625 KOREA DEVELOPMENT BANK SOUTH KOREAN AGENCY 20 BILLION YEN OF 47 EUROBONDS DUE MARCH 18 2004 AT ISSUE AND REOFFER PRICE PAR VIA BANK OF TOKYO CAPITAL MARKETS BONDS YIELD 47 FEES 0325 MORGAN STANLEY GROUP INC US 150 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1996 AT ISSUE AND REOFFER PRICE 99765 VIA MORGAN STANLEY & CO INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR PLUS 0125 POINT FEES 0175 DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 125 MILLION CANADIAN DOLLARS OF 6 EUROBONDS DUE DEC 29 1997 AT ISSUE PRICE 101295 VIA SCOTIA MCLEOD INC REOFFERED AT 100295 TO YIELD 59 A SPREAD OF 605 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT BOND DUE 1996 FEES 15 NATIONWIDE BUILDING SOCIETY UK 300 MILLION OF FLOATINGRATE EURONOTES DUE OCTOBER 1996 IN EXCHANGE OFFER VIA BARING BROTHERS & CO ISSUE AND REOFFER PRICE PAR INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR POUNDS PLUS 10 BASIS POINTS EXCHANGEABLE WITH 300 MILLION OF NATIONWIDE BONDS OUTSTANDING DUE OCTOBER 1996 ORIGINALLY LAUNCHED IN 1986 FEES UNDISCLOSED TOMOKU CO JAPAN 100 MILLION OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 24 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT 25 INDICATED PREMIUM FROM APRIL 7 TO MARCH 17 1998 GUARANTOR INDUSTRIAL BANK OF JAPAN LTD TERMS FIXED MARCH 8 FEES 225 LESS 015 FOR LEAD MANAGER 9403010066 940301 CLINTON'S PLAN FOR HEALTH CARE MAY FACE BLOW GROUP THAT HELPED INSPIRE PRESIDENT NOW WEIGHS A MORE CAUTIOUS PATH BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL JACKSON HOLE WYO AN INFLUENTIAL GROUP THAT INSPIRED NUMEROUS HEALTHCARE REFORM BILLS INCLUDING PRESIDENT CLINTON'S IS CONSIDERING REVISING ITS PROPOSAL IN FAVOR OF A MORE CONSERVATIVE AND GRADUAL PATH TO ACHIEVING MEDICAL COVERAGE FOR ALL AMERICANS THE JACKSON HOLE GROUP NAMED FOR THIS CRAGGY MOUNTAIN RESORT WHERE IT CAME UP WITH THE IDEA OF MANAGED COMPETITION IS LEANING TOWARD ADVOCATING A CAUTIOUS PAYASYOUGO APPROACH UNLIKE THE PRESIDENT'S PLAN IT WOULDN'T REQUIRE EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS UNLESS OTHER REFORMS FAIL AND IT WOULD SEEK TO AVOID THE RISK OF OVERSPENDING BY MOVING MORE SLOWLY TOWARD EXTENDING COVERAGE TO THE UNINSURED THE GROUP WHICH MET HERE FOR FOUR DAYS ENDED SUNDAY ALSO IS MOVING TOWARD EMBRACING THE IDEA PUSHED BY MODERATE REPUBLICANS IN CONGRESS OF ALLOWING COMPETING HEALTHINSURANCE PURCHASING POOLS IN A SINGLE REGION THE NEW RECOMMENDATIONS ARE LIKELY TO BOOST ARGUMENTS OF MODERATES IN BOTH PARTIES WHO HAVE BEEN URGING A SMALLER GOVERNMENT ROLE IN THE HEALTH SYSTEM AND A MORE GRADUAL PHASEIN PERIOD FOR UNIVERSAL COVERAGE THAN THE CLINTON ADMINISTRATION ADVOCATES MEANWHILE THE BOARD OF THE US CHAMBER OF COMMERCE SAID IT NOW OPPOSES REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE AND A HOUSE WAYS AND MEANS SUBCOMMITTEE POSTPONED ACTION ON HEALTHCARE OVERHAUL UNTIL NEXT WEEK THE DELAY WAS DESIGNED PARTLY TO GIVE TIME FOR BUDGET ANALYSTS TO CALCULATE THE COST OF VARIOUS ALTERNATIVES BUT IT ALSO REFLECTED THE STILL UNCERTAIN CONSENSUS ON WHAT ROUTE TO FOLLOW CHIEF AMONG THE PLANS THE PANEL IS CONSIDERING IS ONE AUTHORED BY THE HEALTH PANEL'S CHAIRMAN REP FORTNEY PETE STARK D CALIF WHO PROPOSES ACHIEVING UNIVERSAL COVERAGE THROUGH AN EXPANDED MEDICARETYPE PROGRAM FOR THE UNINSURED AND THE POOR A LOOSEKNIT GATHERING OF PHYSICIANS HEALTHINDUSTRY EXECUTIVES AND ACADEMICS THE JACKSON HOLE GROUP HAS HAD A FARREACHING EFFECT ON THE HEALTHCARE DEBATE IN WASHINGTON BY SUGGESTING THAT THERE ARE WAYS TO ACHIEVE HEALTH COVERAGE FOR EVERYONE WITHOUT ADOPTING A GOVERNMENTRUN MEDICAL SYSTEM PRESIDENT CLINTON FOR ONE EMBRACED ITS IDEA OF MANAGED COMPETITION WHICH SEEKS TO BRING PURCHASERS OF HEALTH SERVICES TOGETHER TO INCREASE THEIR CLOUT BUT JACKSON HOLE MEMBERS ARE CRITICAL OF THE PRESIDENT'S PLAN BECAUSE IT WOULD IMPOSE MORE GOVERNMENT REGULATION THAN THEY ADVOCATE AND THE MOOD OF ITS LATEST MEETING COULDN'T HAVE BEEN ENCOURAGING TO THE WHITE HOUSE ORIGINALLY THE GROUP PROPOSED REQUIRING ALL EMPLOYERS WITH FEWER THAN 100 WORKERS TO JOIN HEALTH PLAN PURCHASING POOLS ALL EMPLOYERS WOULD BE REQUIRED TO PAY AT LEAST PART OF THEIR WORKERS' HEALTH INSURANCE PREMIUMS AND THE WORKERS WOULD SELECT FROM AN ARRAY OF PRIVATE HEALTHINSURANCE PLANS OFFERED THROUGH THE REGIONAL PURCHASING POOL TO INCREASE CONSUMER PRICE SENSITIVITY INCOMETAX BREAKS WOULD BE ALLOWED TO EMPLOYERS AND EMPLOYEES FOR ONLY THE COST OF THE LOWESTPRICE PLAN IN A REGION THE NEW DRAFT DUBBED MANAGED COMPETITION II CITES POLITICAL OPPOSITION TO THE EMPLOYER MANDATE AND THE LIKELIHOOD THAT SAVINGS FROM THE NEWLY STRUCTURED HEALTH SYSTEM WILL TAKE TIME TO ACCRUE IT IS NOT INAPPROPRIATE TO HELP PEOPLE FIRST WHO NEED IT MOST IE THE POOREST OF POOR INDIVIDUALS THROUGH SUBSIDIES PLUS SMALL EMPLOYERS THROUGH PURCHASING COOPERATIVES AND SET A NOTTOODISTANT FUTURE TARGET FOR UNIVERSAL COVERAGE THE GROUP CONCLUDES THE MODIFIED PLAN WOULD RETAIN THE LIMIT ON HEALTHCARE TAX DEDUCTIONS AND THE REQUIREMENT THAT SMALL BUSINESSES JOIN PURCHASING POOLS BUT IT SHUNS THE EMPLOYER MANDATE AND IT WOULD ALLOW MORE THAN ONE POOL TO BE ESTABLISHED FOR A REGION IT SUGGESTS VARIOUS INSURANCE REFORMS AND RECOMMENDS SUBSIDIES TO HELP LOWINCOME PEOPLE BUY HEALTH INSURANCE IF UNIVERSAL COVERAGE HASN'T BEEN ACHIEVED AFTER FOUR YEARS IT SAYS CONGRESS SHOULD EITHER INCREASE THE SUBSIDIES OR ENACT A SCHEME IN WHICH BUSINESSES WITH MORE THAN 100 WORKERS WOULD BE REQUIRED TO CONTRIBUTE TO THEIR EMPLOYEES' HEALTH COVERAGE WHILE WORKERS FOR COMPANIES WITH FEWER THAN 100 WORKERS WOULD BE REQUIRED TO OBTAIN HEALTH INSURANCE ON THEIR OWN DEMOCRATS IN CONGRESS HAVE BEEN DISCUSSING SUCH A HYBRID PLAN THE LACK OF CONSENSUS ON HEALTH CARE IS REFLECTED BY MR STARK'S SUBCOMMITTEE THE CHAIRMAN CAN COUNT ON NONE OF THE PANEL'S FOUR REPUBLICANS AND WILL LIKELY LOSE A FELLOW DEMOCRAT REP MIKE ANDREWS WHO IS RUNNING FOR THE SENATE IN TEXAS THAT MEANS HE MUST HOLD ALL OF THE REMAINING SIX DEMOCRATIC VOTES BUT IF HE MOVES TOO FAR TOWARD THE CENTER HE RISKS LOSING SUCH LAWMAKERS AS REP JIM MCDERMOTT OF WASHINGTON STATE A STRONG ADVOCATE OF A GOVERNMENTRUN OR SINGLEPAYER HEALTH SYSTEM MR STARK URGES A MUCH GREATER GOVERNMENT ROLE THAN DOES THE PRESIDENT'S PLAN HE SEEKS PRICE CONTROLS SIMILAR TO THOSE NOW USED UNDER MEDICARE MEDICAID CARE FOR THE POOR WOULDN'T BE PRIVATIZED AS PROPOSED BY MR CLINTON BUT INSTEAD WOULD BE WRAPPED INTO THE SAME NEW MEDICARE PROGRAM DUBBED MEDICARE C THE STARK PROPOSAL PRESERVES THE PRESIDENT'S PROPOSED EMPLOYER MANDATE BUT OFFERS SOME CONCESSIONS TO BUSINESS FOR EXAMPLE SOME INSURANCE REFORMS WOULD BE PHASED IN GRADUALLY ACCORDING TO A 24PAGE SUMMARY AND WHILE REGIONAL HEALTH ALLIANCES WOULD BE ESTABLISHED AS COOPERATIVE BUYING POOLS FOR INSURANCE EMPLOYER PARTICIPATION WOULD BE VOLUNTARY THE CHAMBER OF COMMERCE VOTE CAME AFTER HUNDREDS OF CHAMBER MEMBERS REPRESENTING MOSTLY SMALL AND MEDIUMSIZED COMPANIES CALLED THE ORGANIZATION TO SAY THEY'RE AGAINST THE EMPLOYER MANDATE A YEAR AGO THE US CHAMBER TRIED TO TAKE A LEADERSHIP POSITION SUPPORTING SHARED RESPONSIBILITY IN PAYING FOR HEALTH CARE SAID ROBERT PATRICELLI CHAIRMAN OF THE ORGANIZATION'S HEALTHPOLICY COMMITTEE BUT IT'S NOW CLEAR THE BUSINESS COMMUNITY WON'T SUPPORT THAT DESPITE OUR EFFORTS TO EDUCATE THEM ON THE ISSUE RICHARD LESHER THE CHAMBER'S PRESIDENT SAID THE CHAMBER ALSO HAS SUSPENDED ITS SUPPORT FOR ACHIEVING UNIVERSAL HEALTHINSURANCE COVERAGE BECAUSE THAT GOAL IS DIFFICULT TO REACH WITHOUT AN EMPLOYER MANDATE OREGON SEN ROBERT PACKWOOD NOTING THAT FELLOW REPUBLICANS ARE SPLIT ON THE QUESTION OF MANDATES MADE A SIMILAR ASSESSMENT IF YOU DON'T ACCEPT THE CONCEPT OF MANDATES YOU DON'T GET UNIVERSAL COVERAGE HE SAID JEANNE SADDLER CONTRIBUTED TO THIS ARTICLE 9403010065 940301 ABREAST OF THE MARKET REBOUND IN BONDS CARRIES STOCKS MOSTLY HIGHER BUT INDUSTRIALS FALL BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A REBOUND IN THE BOND MARKET CARRIED STOCKS MOSTLY HIGHER EVEN THOUGH THE DOW JONES INDUSTRIAL AVERAGE LOST GROUND ALTHOUGH THE INDUSTRIAL AVERAGE POSTED ITS FOURTH STRAIGHT DECLINE LOSING 676 OR 018 TO 383202 BROADER INDEXES CONTINUED TO TAKE THEIR CUES FROM BONDS THE TREASURY'S 30YEAR BOND GAINED GROUND FOR A SECOND CONSECUTIVE SESSION AFTER A DIVE ON THURSDAY LIFTED ITS YIELD TO THE HIGHEST LEVEL SINCE JUNE THE LONG BOND WAS UP 5/8 POINT LOWERING ITS YIELD TO 665 HELPING TO DEPRESS THE INDUSTRIAL AVERAGE WAS A SELLOFF IN TOBACCORELATED ISSUES INCLUDING COMPONENT ISSUE PHILIP MORRIS WHICH TUMBLED 2 TO 56 WEAKNESS IN CYCLICAL STOCKS HAD RESTRAINED THE INDUSTRIAL AVERAGE FRIDAY THE NASDAQ STOCK MARKET MEANWHILE SURGED AS INVESTORS BARRELED INTO COMMUNICATIONSRELATED STOCKS ON NEWS THAT MCI COMMUNICATIONS PLANS TO BUY A STAKE IN NEXTEL COMMUNICATIONS AS PART OF AN ALLIANCE TO OFFER WIRELESS COMMUNICATIONS SERVICES NEXTEL CLIMBED 5 5/8 OR 146 TO 44 1/4 THE NASDAQ COMPOSITE INDEX ADVANCED 872 OR 111 TO 79250 TECHNOLOGYRELATED ISSUES ALSO WERE STRONG INCLUDING MICROSOFT WHICH ROSE 1 1/2 TO 82 1/2 AND 3COM WHICH ADDED 2 5/8 TO 60 5/8 ON THE NEW YORK STOCK EXCHANGE THERE WERE 1457 ISSUES ADVANCING AND 727 DECLINING VOLUME SLOWED TO 267440000 SHARES FROM 273220000 SHARES FRIDAY THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 107 OR 023 TO 46714 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 066 OR 026 TO 25923 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 099 OR 022 TO 44274 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX JUMPED 389 OR 083 TO 47134 TOBACCO STOCKS WERE HURT BY CONCERNS ABOUT THE POTENTIAL FOR INCREASED REGULATION IN THE CIGARETTE BUSINESS THE FOOD AND DRUG ADMINISTRATION SAID THERE IS GROWING EVIDENCE THAT TOBACCO COMPANIES DELIBERATELY MAINTAIN AN ADDICTIVE LEVEL OF NICOTINE IN CIGARETTES RJR NABISCO WAS THE MOST ACTIVE NEW YORK STOCK EXCHANGE ISSUE SLIDING 3/8 TO 6 7/8 ON VOLUME OF 55 MILLION SHARES AMERICAN BRANDS FELL 5/8 TO 33 1/8 MCI COMMUNICATIONS WILL BUY A 17 STAKE IN NEXTEL COMMUNICATIONS AS ITS INITIAL PURCHASE UNDER AN ALLIANCE AMONG IT NEXTEL AND COMCAST THE THREE COMPANIES EXPECT TO OFFER WIRELESS PERSONAL COMMUNICATIONS SERVICES USING TECHNOLOGY DEVELOPED BY MOTOROLA MCI SHARES ADDED 7/8 TO 27 3/8 AND COMCAST CLASS A ROSE 1 1/4 TO 20 1/4 BOTH ALSO ON NASDAQ MOTOROLA RETRACED ITS EARLY GAINS TO END WITH A LOSS OF 1 1/8 TO 102 1/8 VIACOM CLASS B JUMPED 1 3/8 TO 28 3/8 ON THE AMEX WHILE BLOCKBUSTER ENTERTAINMENT ADDED 1/4 TO 26 1/2 ON THE BIG BOARD SOME HOLDERS OF BLOCKBUSTER BASED IN FORT LAUDERDALE FLA ASKED A DELAWARE JUDGE TO HALT THAT COMPANY'S PLANNED MERGER WITH VIACOM MANY BLOCKBUSTER HOLDERS HAVE COMPLAINED THEY WON'T BE PAID ENOUGH FOR THEIR SHARES COLUMBIA/HCA RALLIED 2 1/8 TO 43 AFTER THE LOUISVILLE KY HEALTHCARE PROVIDER REPORTED FOURTHQUARTER EARNINGS OF 52 CENTS A SHARE COMPARED WITH EARNINGS FROM CONTINUING OPERATIONS OF 44 CENTS A SHARE A YEAR EARLIER ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD PREDICTED A PROFIT OF 49 CENTS A SHARE COCACOLA FEMSA ADDED 1 5/8 TO 32 THE MEXICAN SOFT DRINK COMPANY A JOINT VENTURE OF COCACOLA AND MEXICO'S FEMSA REPORTED THAT NET INCOME DOUBLED IN THE FOURTH QUARTER SHARES OF COCACOLA ADDED 5/8 TO 42 5/8 FIRST CHICAGO SLIPPED 1/2 TO 48 7/8 BUT ITS SOCALLED DECS ISSUE LEAPT 4 1/2 TO 42 1/4 THE VALUE OF THE DECS OR DEBT EXCHANGEABLE FOR COMMON STOCK IS TIED TO THE BIG CHICAGO BANKING COMPANY'S STAKE IN NEXTEL THE DECS WERE ISSUED LAST MONTH AT 36 1/4 CHIQUITA BRANDS ROSE 1 5/8 TO 17 5/8 AFTER THE CINCINNATI FRESH FRUIT AND VEGETABLE CONCERN REPORTED A FOURTHQUARTER LOSS OF 117 A SHARE THAT WAS NARROWER THAN THE 297ASHARE DEFICIT IT HAD FROM CONTINUING OPERATIONS A YEAR EARLIER THE COMPANY RECORDED RESTRUCTURING CHARGES LAST YEAR SOFAMOR/DANEK SKIDDED 2 7/8 TO 28 AN ANALYST AT SMITH BARNEY SHEARSON LOWERED AN INVESTMENT RATING ON SHARES OF THE MEMPHIS TENN MAKER OF SPINAL IMPLANTS TO NEUTRAL FROM OUTPERFORM MARVEL ENTERTAINMENT CLIMBED 1 7/8 TO 25 3/8 MERRILL LYNCH & CO UPGRADED ITS INTERMEDIATETERM RATING ON THE NEW YORK COMIC BOOK AND TRADING CARD PRODUCER TO ABOVE AVERAGE FROM NEUTRAL COVENTRY LOST 1 5/8 TO 50 3/8 ON NASDAQ EVEN THOUGH THE NASHVILLE TENN COMPANY REPORTED FOURTHQUARTER EARNINGS OF 42 CENTS A SHARE AFTER TAKING A FOURCENTASHARE CHARGE TIED TO A LAWSUIT A YEAR EARLIER IT HAD EARNINGS OF 33 CENTS A SHARE THE MARKET GOT MODERATELY OVERSOLD LAST WEEK AND NOW IT IS TRYING TO STABILIZE SAID PHILIP ROTH A TECHNICAL ANALYST AT DEAN WITTER REYNOLDS IT LOOKS TO ME LIKE WE ARE REGROUPING FOR ANOTHER RALLY ATTEMPT HE SAID THE INDUSTRIAL AVERAGE LOST 125 LAST WEEK BUT ANALYSTS SAID THE BOND MARKET WILL CONTINUE TO SET THE COURSE FOR STOCKS A TEST FOR BOTH MARKETS WILL COME TODAY WHEN THE COMMERCE DEPARTMENT REVISES ITS ESTIMATE OF FOURTHQUARTER GROSS DOMESTIC PRODUCT ECONOMISTS ARE EXPECTING A 67 RATE A SURPRISINGLY STRONG NUMBER LIKELY WOULD HURT STOCKS AND BONDS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THOUGH SAID HE EXPECTS BOND YIELDS TO DRIFT LOWER THIS MONTH THAT COMBINED WITH GENERALLY STRONG ECONOMIC CONDITIONS AND MILD INFLATION SHOULD HELP LIFT STOCKS HE SAID 9403010064 940301 BUSINESS BRIEF LOCKHEED CORP TURKEY TO BUY 40 MORE F16S FOR ROUGHLY 350 MILLION LOCKHEED CORP CALABASAS CALIF SAID REPRESENTATIVES OF THE TURKISH AND US GOVERNMENTS AGREED FOR TURKEY TO RECEIVE 40 MORE OF LOCKHEED'S F16 FIGHTER JETS A SPOKESMAN FOR LOCKHEED'S FORT WORTH TEXAS DIVISION ESTIMATED THE VALUE OF THE AGREEMENT TO LOCKHEED AT 350 MILLION OR ABOUT 875 MILLION PER PLANE HE SAID A FORMAL CONTRACT IS EXPECTED IN A MATTER OF WEEKS THE AGREEMENT PROVIDES FOR THE PLANES TO BE DELIVERED BEGINNING IN 1998 FROM A FACTORY OPERATED NEAR ANKARA TURKEY BY TUSAS AEROSPACE INDUSTRIES INC A JOINT VENTURE PARTLY OWNED BY LOCKHEED THE PLANES ARE ASSEMBLED IN TURKEY FROM PARTS PRODUCED BY LOCKHEED AND TURKISH MANUFACTURERS TURKEY'S LATEST PURCHASE WOULD INCREASE ITS TOTAL OF F16S EITHER IN SERVICE OR ON ORDER TO 240 9403010063 940301 MARKETING & MEDIA CONRAD BLACK GETS US FLAGSHIP PAPER WITH HOLLINGER'S SUNTIMES PURCHASE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIAN PRESS BARON CONRAD BLACK HAS SUCCEEDED AT LAST IN ACQUIRING A FLAGSHIP NEWSPAPER IN THE US AMERICAN PUBLISHING CO A UNIT OF HOLLINGER INC A NEWSPAPERPUBLISHING CONCERN CONTROLLED BY MR BLACK AGREED TO ACQUIRE THE CHICAGO SUNTIMES AND ABOUT 60 WEEKLY AND BIWEEKLY NEWSPAPERS PUBLISHED IN THE CHICAGO AREA IN A 180 MILLION PURCHASE OF SUNTIMES CO THE PURCHASE WHICH IS SET TO CLOSE BY THE END OF MARCH WILL BE AMERICAN PUBLISHING'S FIRST HIGHPROFILE ACQUISITION THE COMPANY ALREADY OWNS A STRING OF NEARLY 140 SMALL BUT LUCRATIVE DAILIES AND WEEKLIES IN US COMMUNITIES RANGING FROM TONAWANDA NY TO BEATRICE NEB THIS IS A GREAT NEWSPAPER FRANCHISE IN THE NO 3 NEWSPAPER MARKET IN THE UNITED STATES SAID LARRY PERROTTO PRESIDENT OF AMERICAN PUBLISHING ANALYSTS EXPECT THE ACQUISITION TO BOOST THE PROFILE OF AMERICAN PUBLISHING AHEAD OF A LONGAWAITED INITIAL PUBLIC OFFERING OF STOCK IN THE UNIT THAT IS EXPECTED WITHIN THE NEXT FEW MONTHS THEY'VE TRADITIONALLY OWNED A HODGEPODGE OF TINY NEWSPAPERS IN TINY TOWNS SAID CARLA LARSON AN ANALYST WITH BUNTING WARBURG INC IN TORONTO WHAT THEY'VE BEEN WANTING IS A BIG NAME I THINK THIS WILL ENHANCE THE APPEAL OF AMERICAN PUBLISHING STOCK TO INSTITUTIONAL INVESTORS WHEN IT COMES TO MARKET AMERICAN PUBLISHING IS ACQUIRING THE CHICAGO NEWSPAPERS FROM ADLER & SHAYKIN A PRIVATE INVESTMENT PARTNERSHIP AND MEMBERS OF THE SUNTIMES MANAGEMENT TEAM MR BLACK HAS BEEN LOOKING FOR A LARGE NEWSPAPER TO ACQUIRE IN THE US FOR SEVERAL YEARS IN 1992 HE CAME CLOSE TO BUYING THE BANKRUPT NEW YORK DAILY NEWS AFTER THE DEATH OF NEWSPAPER MAGNATE ROBERT MAXWELL BUT WITHDREW FROM THE BIDDING AFTER FAILING TO REACH AN AGREEMENT WITH THE TABLOID'S UNIONS ON STAFF CUTS THE SUNTIMES ACQUISITION IS A DEPARTURE FROM HOLLINGER'S USUAL PRACTICE OF INVESTING IN FINANCIALLY TROUBLED NEWSPAPERS SUCH AS BRITAIN'S DAILY TELEGRAPH AND TURNING THEM AROUND SAM MCKEEL PUBLISHER OF THE CHICAGO TABLOID AND PRESIDENT AND CHIEF EXECUTIVE OF SUNTIMES CO SAID THE PAPER ALREADY IS PROFITABLE AMERICAN PUBLISHING COULD FIND WAYS TO ENHANCE PROFITABILITY HOWEVER MESSRS MCKEEL AND PERROTTO SAID THERE COULD BE ADVANTAGES TO JOINT PURCHASES OF EVERYTHING FROM NEWSPRINT TO NEWSPAPER FEATURE MATERIAL THE CHICAGO MARKET SEEMS TO BE FAVORING THE SUNTIMES RIGHT NOW SAID ANDREW MCCREATH AN ANALYST WITH GORDON CAPITAL CORP POINTING OUT THAT THE TABLOID HAS INCREASED CIRCULATION IN RECENT YEARS WHILE THAT OF ITS RIVAL THE CHICAGO TRIBUNE HAS FALLEN SLIGHTLY THE CIRCULATION OF THE SUNTIMES STANDS AT 535793 WHILE THE TOTAL FOR THE COMMUNITY PAPERS PUBLISHED BY PIONEER PRESS AND STAR PUBLICATIONS UNITS OF SUNTIMES CO IS 240000 THE ACQUISITION OF SUNTIMES WILL NEARLY DOUBLE AMERICAN PUBLISHING'S ANNUAL REVENUE THE COMPANY SAID AND BRING TOTAL PAID CIRCULATION TO MORE THAN 1600000 IN 1993 THE UNIT HAD TOTAL REVENUE OF 185 MILLION A SPUNKY CHALLENGER TO TRIBUNE CO'S CHICAGO TRIBUNE THE CITY'S MAJOR DAILY THE SUNTIMES IN RECENT YEARS HAS APPEALED MORE TO URBAN BLUECOLLAR READERS AND IN THE PROCESS GIVEN UP MUCH OF THE UPSCALE SUBURBAN READERSHIP SOUGHT BY MANY ADVERTISERS AS A RESULT ITS FUTURE HAS AT TIMES BEEN CONSIDERED UNCERTAIN AND ITS OWNERSHIP HAS CHANGED HANDS IN 1984 THE FIELD FAMILY WHICH MADE ITS MONEY IN DEPARTMENT STORES SOLD THE PAPER TO RUPERT MURDOCH'S NEWS CORP WHICH LITTLE MORE THAN TWO YEARS LATER SOLD IT TO THE ADLER & SHAYKIN/MANAGEMENT GROUP FOR 145 MILLION THE SUNTIMES'S CIRCULATION FIGURES UNDOUBTEDLY HAVE BEEN HELPED BY ITS DECISION TO KEEP ITS NEWSSTAND PRICE AT 35 CENTS WHEN THE TRIBUNE WENT TO 50 CENTS LAST YEAR DESPITE A STAFF THAT IS MUCH THINNER THAN THAT OF THE DEEPPOCKETED TRIBUNE THE SUNTIMES IS FREQUENTLY CONSIDERED THE CITY'S LIVELIER READ HOLLINGER IS BASED IN VANCOUVER BRITISH COLUMBIA IN ADDITION TO ITS AMERICAN PUBLISHING AND DAILY TELEGRAPH UNITS HOLLINGER HAS STAKES IN LARGE AUSTRALIAN AND CANADIAN PUBLISHING CONCERNS AND OWNS ISRAEL'S JERUSALEM POST IN TORONTO STOCK EXCHANGE TRADING HOLLINGER CLOSED AT 14625 CANADIAN DOLLARS US1083 DOWN 25 CANADIAN CENTS 9403010062 940301 BUSINESS BRIEF PUBLIC STORAGE PROPERTIES STORAGE EQUITIES MAKES OFFER TO BUY FIRM FOR 58 MILLION PUBLIC STORAGE PROPERTIES VIII INC GLENDALE CALIF SAID STORAGE EQUITIES INC MADE AN OFFER TO ACQUIRE PUBLIC STORAGE PROPERTIES VIII FOR ABOUT 58 MILLION IN CASH OR STOCK UNDER THE PROPOSED OFFER EACH OUTSTANDING SHARE OF PUBLIC STORAGE PROPERTIES VIII COMMON STOCK WOULD BE CONVERTED INTO EITHER STORAGE EQUITIES COMMON SHARES OR 2194 IN CASH FOR UP TO 50 OF PUBLIC STORAGE PROPERTIES VIII'S 26 MILLION COMMON SHARES THE ARRANGEMENT IS SUBJECT TO APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION AND SHAREHOLDERS OF BOTH COMPANIES PUBLIC STORAGE PROPERTIES VIII IS A REALESTATE INVESTMENT TRUST THAT OWNS MINIWAREHOUSE SELFSTORAGE FACILITIES AND STORAGE EQUITIES IS A REALESTATE INVESTMENT PARTNERSHIP IN GLENDALE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE STORAGE EQUITIES CLOSED AT 14875 UP 375 CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE PUBLIC STORAGE CLOSED AT 20 UP 375 CENTS 9403010061 940301 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP UNIT IS SOLD FOR 340 MILLION TO CLAYTON DUBILIER & RICE WESTINGHOUSE ELECTRIC CORP PITTSBURGH SAID IT COMPLETED THE SALE OF ITS WESTINGHOUSE ELECTRIC SUPPLY CO TO AN AFFILIATE OF CLAYTON DUBILIER & RICE INC A NEW YORK PRIVATE INVESTMENT FIRM THE TOTAL PURCHASE PRICE WAS 340 MILLION THE NEW COMPANY WESCO DISTRIBUTION INC OPERATES 260 WHOLESALE DISTRIBUTION LOCATIONS THROUGHOUT THE US AND CANADA THE COMPANY EMPLOYS OVER 3000 PEOPLE AND HAS ANNUAL SALES OF 16 BILLION B CHARLES AMES A CLAYTON DUBILIER PRINCIPAL WHO WILL SERVE AS CHAIRMAN OF WESCO SAID IT HAS THE POTENTIAL TO BECOME A DISTRIBUTION POWERHOUSE BECAUSE OF ITS BROAD PRODUCT OFFERING STRONG NETWORK OF DISTRIBUTORS AND SOLID BASE OF NATIONAL ACCOUNTS CLAYTON DUBILIER MANAGES MORE THAN 1 BILLION IN EQUITY CAPITAL AND SINCE 1978 HAS INVESTED IN 20 BUSINESSES WITH TOTAL ANNUAL SALES VOLUME EXCEEDING 10 BILLION 9403010060 940301 WHAT'S NEWS BUSINESS AND FINANCE MCI AGREED TO PAY 13 BILLION FOR A 17 STAKE IN NEXTEL CHALLENGING RIVAL EFFORTS BY AT&T AND THE BABY BELLS TO CREATE A NATIONAL CELLULAR TELEPHONE SERVICE EVER SINCE AT&T MOVED LAST YEAR TO BUY MCCAW MCI HAS SOUGHT A CELLULAR PARTNER AND IT AIMS TO HELP NEXTEL BUILD A NATIONWIDE DIGITAL CELLULAR NETWORK IN TWO YEARS THE MCI DEAL IS FORCING INDUSTRY PLAYERS TO QUICKLY ALIGN WITH ONE OF THREE EMERGING WIRELESS TECHNOLOGIES MCCAW IS BEHIND SCHEDULE ON ROLLING OUT A WIRELESS COMMUNICATIONS SERVICE AND EXPECTS TO BE SIX MONTHS LATE IN OFFERING THE SERVICE IN ALL OF ITS CELLULAR MARKETS THE SERVICE IS A CONTENDER IN THE RACE TO OFFER WIRELESS TRANSMISSION TO POCKET COMPUTERS A KEY HEALTH POLICY GROUP IS CONSIDERING REVISING ITS MANAGED COMPETITION HEALTHCARE PROPOSAL IN FAVOR OF A MORE CAUTIOUS APPROACH UNLIKE CLINTON'S PLAN IT WOULDN'T REQUIRE EMPLOYERS TO BUY HEALTH INSURANCE FOR WORKERS UNLESS OTHER REFORMS FAIL AETNA SAID ITS LOSSES FROM THE CALIFORNIA QUAKE AND WINTER STORMS WOULD TOTAL 120 MILLION WELL ABOVE ANALYSTS' EXPECTATIONS SUGGESTING THE INSURANCE INDUSTRY IS SUSTAINING HEAVIER DISASTERRELATED LOSSES THAN PROJECTED BOND PRICES RALLIED RECOVERING A FRACTION OF THE BIG LOSSES OF RECENT WEEKS AND PUSHING THE LONGTERM BOND YIELD TO 665 FROM 671 FRIDAY KMART POSTED A 119 BILLION LOSS FOR THE FISCAL FOURTH QUARTER COMPARED WITH A YEARAGO PROFIT THE WIDERTHANEXPECTED LOSS REFLECTS CHARGES AND A FAILURE TO BOOST APPAREL SALES US AIRLINES SLASHED COASTTOCOAST AND OTHER LONGHAUL AIR FARES BY UP TO 52 ON ADVANCEPURCHASE TICKETS CIGARETTE MAKERS' STOCKS FELL AS INVESTORS REACTED TO THE FDA'S SUGGESTION THAT A LEGAL BASIS EXISTS FOR THE REGULATION OF CIGARETTES AS A DRUG THE STANCE REKINDLED CONCERN ABOUT WHITE HOUSE PLANS TO LIFT TOBACCO TAXES AND SOME LAWYERS SAID IT COULD SPUR A FRESH ROUND OF SUITS AGAINST TOBACCO FIRMS JAPAN SUGGESTED IT WOULD RETALIATE IF THE US IMPOSES SANCTIONS FOUND TO VIOLATE INTERNATIONAL TRADE RULES COLUMBIA/HCA POSTED HIGHERTHANEXPECTED FOURTHQUARTER EARNINGS HELPED BY ITS SWIFT OVERHAUL OF DOZENS OF RECENTLY ACQUIRED HOSPITALS WHITTLE PLANS TO CLOSE ITS SPECIAL REPORT UNIT WHICH PROVIDES TV PROGRAMMING FOR DOCTORS' OFFICES THE CHICAGO SUNTIMES AGREED TO BE ACQUIRED FOR 180 MILLION BY A COMPANY CONTROLLED BY CANADIAN PRESS BARON CONRAD BLACK GIVING HIM HIS FIRST FLAGSHIP NEWSPAPER IN THE US FEDERATED DEPARTMENT STORES SAID PROFIT FOR THE FISCAL FOURTH QUARTER ROSE 47 REFLECTING STEADY SALES GAINS PRECIOUSMETALS PRICES ROSE ON NERVOUSNESS ABOUT CLASHES BETWEEN SERBIAN AND US JET FIGHTERS IN BOSNIA AND GENERAL WORRIES ABOUT A POTENTIAL RETURN OF INFLATION TO THE ECONOMY IN NEW YORK TRADING GOLD FOR APRIL DELIVERY WAS UP 270 TO 38250 AN OUNCE POLYGRAM'S 1993 EARNINGS ROSE 21 ON A 12 REVENUE GAIN REFLECTING THE STRENGTH OF THE GLOBAL MUSIC INDUSTRY BONDS LEHMAN BROTHERS TREASURY INDEX 541924 UP 3018 COMMODITIES OIL 1448 A BARREL OFF 9 CENTS DOW JONES FUTURES INDEX 14582 UP 041 SPOT INDEX 13149 UP 022 DOLLAR 10450 YEN OFF 035 17041 MARKS OFF 00059 9403010059 940301 BUSINESS BRIEF CHRYSLER CORP WHOLESALE PRICES ON INTREPID OTHER SEDANS ARE INCREASED CHRYSLER CORP INCREASED WHOLESALE PRICES ON THE DODGE INTREPID AND OTHER BIG SEDANS BY 210 OR ABOUT 12 BUT THE THE RETAIL PRICES AREN'T CHANGING THE HIGHLAND PARK MICH AUTO MAKER RAISED WHOLESALE PRICES 200 AND RAISED ITS DESTINATION CHARGE 10 THE INCREASES DON'T CHANGE THE MANUFACTURERS SUGGESTED RETAIL PRICE ON THE SEDANS 19747 FOR AN EAGLE VISION ESI BUT DEALERS WILL NOW ADD ON TO THAT A 535 DESTINATION CHARGE UP FROM 525 MOREOVER DEALERS WILL BE LESS LIKELY TO OFFER STEEP DISCOUNTS BECAUSE THE WHOLESALE PRICE THEY PAY ON THE BASE VISION IS UP 200 TO 1749995 THE PRICE CHANGE SEEMS DESIGNED TO INCREASE PRICES WITHOUT GARNERING NEGATIVE PUBLICITY THAT WOULD BE PRODUCED BY A RETAIL PRICE INCREASE BUT CHRYSLER SAID THE INCREASE WAS INTENDED TO KEEP ITS DEALER MARGINS IN LINE WITH THE INDUSTRY A CHRYSLER LHS INCLUDING DESTINATION CHARGES WILL COST 30878 UNDER THE NEW PRICES AN INCREASE OF 10 THE WHOLESALE PRICE FOR THE VEHICLE WILL BE 2669055 UP 200 THE DESTINATION CHARGES FOR THE NEW YORKER AND LHS SEDANS WERE INCREASED 10 TO 595 9403010058 940301 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN EMPLOYEES FEEL THE HEAT AS COMPANIES TRY TO CUT TRAVEL COSTS AT MILES INC IN PITTSBURGH EXECUTIVES WHO ASK FOR AN UPGRADED RENTAL CAR ARE TOLD THEIR CHOICES WILL BE NOTED AND SUBJECT TO MANAGEMENT SCRUTINY SUCH MORAL SUASION HELPED TO SAVE THE COMPANY 2 MILLION IN 1993 SAYS M JOHN GUARNERI TRAVELSERVICES MANAGER XEROX ASKS SENIOR MANAGERS TO KEEP CLOSER TRACK OF SUBORDINATES' TRAVEL HABITS COMPANY MANAGERS GET A MONTHLY REPORT ON WHAT AIRLINES AND HOTELS WERE USED AND THEN COMPARE THE PRICES WITH CHEAPER OPTIONS USE OF SENIORCITIZEN COUPONS RISES AMONG SMALL AND MIDSIZE FIRMS WITH WORKERS 62 AND OLDER SAYS PITTSBURGH TRAVEL CONSULTANT KIMBERLY NISSEN LYNN HARDT OF COST CONTROLLER NEWSLETTER IN STORM LAKE IOWA SUGGESTS TRAVELERS MAKING A SERIES OF LONGDISTANCE CREDITCARD CALLS FROM HOTEL ROOMS NOT HANG UP AFTER EACH ONE STAYING CONNECTED TO THE CARRIER BY PRESSING THE POUND KEY MIGHT ELIMINATE THE HOTEL SURCHARGE OF 50 CENTS OR MORE PER CALL CITICORP SAYS ITS TRAVEL LOAD IS RISING AGAIN AS THE COMPANY EXPANDS WANT A LENIENT FINANCIAL CHECKUP HIRE A MORE SENIOR ACCOUNTANT UNIVERSITY OF DAYTON ACCOUNTING PROFESSOR KENNETH ROSENZWEIG AND PHILOSOPHY PROFESSOR MARILYN FISCHER WHO TEACHES BUSINESS ETHICS ASKED 265 ACCOUNTANTS FOR THEIR VIEWS ON 13 MANAGEMENT MOVES THEY FOUND THAT SENIORLEVEL ACCOUNTANTS WERE MORE TOLERANT OF EARNINGS MANIPULATIONS THAN WERE JUNIOR COLLEAGUES ONE EXAMPLE RECORDING AN EXPENSE IN THE WRONG YEAR PEOPLE COME IN WITH HIGH STANDARDS AND THOSE MAY GET COMPROMISED BY THE PRESSURE OF CORPORATE LIFE SUGGESTS PROF ROSENZWEIG THEORIZING PERSISTENT PRESSURE FOR SHORTTERM EARNINGS GROWTH TENDS TO DIMINISH ACCOUNTANTS' ETHICAL VALUES UNIONS FRET OVER WHITE HOUSE TACTICS ON HEALTHCARE REFORM ORGANIZED LABOR HAS MUCH TO GAIN FROM OVERHAUL OF THE CURRENT SYSTEM HEALTHCARE REFORM WOULD BE A HUGE ECONOMIC BENEFIT FOR OUR MEMBERS SAYS ARTHUR COIA PRESIDENT OF THE LABORERS' UNION BUT LABOR LEADERS WORRY ABOUT CLINTON'S NEGOTIATING STYLE OF CREATING BROAD GUIDELINES AND LETTING OTHERS LAY THE PATH TO THE GOAL WE'VE BEEN GETTING DIFFERENT SIGNALS FROM THE ADMINISTRATION SAYS CLOTHING AND TEXTILE WORKERS' PRESIDENT JACK SHEINKMAN WE'RE FEARFUL NOW THEY MAY BE GIVING AWAY SOME OF THE BASIC TENETS UNIONS WORRY THAT THE SELLING IS BECOMING TOUGHER IT'S HARD TO LOBBY BECAUSE WE DON'T KNOW WHAT THE PRESIDENT MIGHT HAVE GIVEN AWAY SAYS AFLCIO LOBBYIST ROBERT MCGLOTTEN WHITE HOUSE OFFICIALS FROM VICE PRESIDENT AL GORE TO ADVISER GEORGE STEPHANOPOULOS ATTEND AN AFLCIO MEETING IN FLORIDA TO ASSURE UNION LEADERS OF THEIR COMMITMENT COLLEGE LADIES AND GENTLEMEN START YOUR RESUMES AMERICA'S TOP 100 INTERNSHIPS A NEW BOOK BY MARK OLDMAN AND SAMER HAMADEH RATES CORPORATE INTERNSHIPS BY SUCH FACTORS AS BUSYWORK PAY AND QUALITY OF LIFE AMONG THE NIRVANA INTERNSHIPS LOW ON BUSYWORK HIGH ON JOB EXPERIENCE APPLE COMPUTER BOEING INTEL MICROSOFT THE WASHINGTON POST AND THE NATIONAL TROPICAL BOTANICAL GARDEN IN KAUAI HAWAII WONDER HOW THE LAST ONE GOT IN UP IN THE AIR THE ASSOCIATION OF FLIGHT ATTENDANTS FACES NEGOTIATIONS WITH 13 CARRIERS THIS YEAR LAST WEEK NEGOTIATORS FOR THE UNION'S 18000 UNITED AIRLINES MEMBERS ONCE AGAIN DECLINED TO JOIN THE EMPLOYEE BUYOUT OF THE AIRLINE THE CARRIER'S STRICT FLIGHTATTENDANT WEIGHT POLICY AND FOREIGN HIRING ARE TWO BIG STICKING POINTS IN THE MONEY CEO COMPENSATION IS HIGHEST IN THE COMMUNICATIONS INDUSTRY THE CONFERENCE BOARD SAYS CHIEF EXECUTIVES IN BROADCASTING AND PUBLISHING HAD MEDIAN PAY OF 885000 IN 1992 MEANWHILE EXECUTIVES LOOKING FOR SALARY INCREASES SHOULD HEAD FOR INDONESIA JAPAN MALAYSIA SINGAPORE AND TAIWAN WHERE AVERAGE RAISES THIS YEAR SHOULD RUN DOUBLE THE INFLATION RATES WILLIAM M MERCER INC PREDICTS WASHINGTON MULLS REQUIRING EMPLOYEESAFETY TEAMS COMPANIES TAKE SIDES THE HOUSE LABOR COMMITTEE MAY VOTE THIS WEEK ON A BILL THAT WOULD FORCE FIRMS WITH 11 OR MORE WORKERS TO SET UP WORKERMANAGEMENT TEAMS TO MONITOR SAFETY BUSINESS GROUPS AND REPUBLICANS OPPOSE THE MEASURE WHICH IS BACKED BY ORGANIZED LABOR AND THE WHITE HOUSE MANY COMPANIES ALREADY HAVE SUCH TEAMS IN PLACE GREYHOUND LINES WHICH USES COMMITTEES BACKS THE PLAN AS DO POTLATCH AND GELMAN SCIENCES OF ANN ARBOR MICH STILL MANY COMPANIES FEAR A GOVERNMENT MANDATE SAN FRANCISCO'S GRANITE CONSTRUCTION STRONGLY OPPOSES THE PROPOSAL WHICH A SPOKESMAN ARGUES COULD HURT WORKERMANAGEMENT RELATIONS ADDS GENE ELROD OF DALLASBASED PEERLESS MANUFACTURING I THINK IT'S A PROBLEM FOR THE GOVERNMENT TO COME IN AND MANDATE ANYTHING WORKER GROUPS OR NOT IT'S TOUGH TO QUANTIFY WHETHER TEAMS REDUCE INJURY RATES SAYS GREYHOUND SAFETY DIRECTOR JAMES RENFORTH STILL HE ADDS I DON'T THINK ANYBODY CAN PROVE THAT IT HURTS THE CHECKOFF FOR WORKER'S MEMORIAL DAY IN APRIL THE AFLCIO PRINTS 100000 STICKERS WITH THE SLOGAN OUR JOBS ARE KILLING US RETURNING FROM A PICKETING EVENT IN A POOR MIAMI COMMUNITY SEVEN UNION PRESIDENTS FIND THEIR BUS BOARDED BY A HUCKSTER SELLING THREE PAIRS OF WOMEN'S SHOES FOR 2 THERE WERE NO TAKERS 9403010057 940301 WHO'S NEWS GENETICS INSTITUTE INC GENETICS INSTITUTE INC CAMBRIDGE MASS ROBERT LEVY 56 YEARS OLD AND PRESIDENT OF WYETHAYERST RESEARCH A UNIT OF AMERICAN HOME PRODUCTS CORP WAS ELECTED A DIRECTOR OF THIS BIOTECHNOLOGY CONCERN HE SUCCEEDS BERNARD CANAVAN WHO RESIGNED FROM THE BOARD AT THE TIME THAT HE RETIRED AS PRESIDENT OF AMERICAN HOME PRODUCTS IN JANUARY AMERICAN HOME HOLDS A MAJORITY STAKE IN GENETICS AND HAS TWO REPRESENTATIVES ON ITS BOARD 9403010056 940301 INTERNATIONAL BRIEF LEGAL & GENERAL GROUP PLC DISCIPLINARY PANEL FINES UNIT IN INVESTMENTBUSINESS CASE UK INSURER LEGAL & GENERAL GROUP PLC SAID A DISCIPLINARY COMMITTEE HAS FOUND THAT ITS LEGAL & GENERAL ASSURANCE SOCIETY UNIT HAS BEEN GUILTY ON THREE CHARGES OF MISCONDUCT AND FINED 180000 268200 PLUS COSTS OF 220000 LEGAL & GENERAL ADMITTED THREE CHARGES OF MISCONDUCT ARISING FROM ITS INVESTMENT BUSINESS BETWEEN JULY 1991 AND OCTOBER 1992 IN A STATEMENT THE COMPANY SAID IT FAILED TO COMPLY WITH SEVERAL LIFE ASSURANCE AND UNIT TRUST REGULATORY ORGANIZATION RULES LEGAL & GENERAL SAID LAUTRO'S DISCIPLINARY COMMITTEE FOUND THE FACTS DISCLOSED SUBSTANTIAL COMPLIANCE DEFICIENCIES AMOUNTING TO SERIOUS BREACHES OF LAUTRO RULES SINCE THE PROBLEMS WERE IDENTIFIED WE HAVE IMPLEMENTED SIGNIFICANT CHANGES TO OUR SYSTEMS WITH THE INTENTION OF ACHIEVING BEST PRACTICE STANDARDS OF COMPLIANCE 9403010055 940301 TECHNOLOGY MCCAW ENCOUNTERS DELAY IN OFFERING NEW DATA SERVICE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MCCAW CELLULAR COMMUNICATIONS INC IS BEHIND SCHEDULE ON ROLLING OUT A LONGAWAITED WIRELESS DATA COMMUNICATIONS SERVICE AND EXPECTS TO BE SIX MONTHS LATE IN OFFERING THE SERVICE IN ALL OF ITS CELLULARPHONE MARKETS MCCAW OF KIRKLAND WASH HOPED TO HAVE THE SERVICE RUNNING IN SIX MARKETS BY THE END OF JANUARY AND HAVE ALL 105 OF ITS US SERVICE TERRITORIES OPERATING BY MIDYEAR INSTEAD THE COMPANY HAS THREE CITIES RUNNING CURRENTLY AND NOW EXPECTS TO COMPLETE THE ROLLOUT BY THE END OF THE YEAR SPOKESMAN BOB RATLIFFE SAID THE SERVICE KNOWN AS CELLULAR DIGITAL PACKET DATA OR CDPD IS A HIGHPROFILE CONTENDER IN THE RACE TO OFFER WIRELESS TRANSMISSION SERVICES TO POCKETSIZE COMPUTERS AND COMMUNICATIONS DEVICES CDPD MAKES USE OF THE TRANSMISSION TOWERS AND SWITCHING EQUIPMENT USED WITH CELLULAR VOICE CALLS OFFERING A POTENTIAL COST SAVINGS OVER DATA SERVICES THAT REQUIRE COMPLETELY NEW FACILITIES MCCAW WHICH HAD ANNOUNCED ONE EARLIER SNAG IN DELIVERING CDPD LAID MOST OF THE BLAME FOR THE LATEST DELAY ON SUPPLIERS OF TRANSMISSION EQUIPMENT WHICH IT WOULDN'T IDENTIFY WE PLANNED OUR PROJECTIONS BASED ON WHEN PEOPLE SAID THEY COULD GET US THE GEAR MR RATLIFFE SAID WE JUST CAN'T GET OUR HANDS ON IT ANALYSTS SAID THE DELAY WHILE NOT LIKELY TO HAVE A BIG FINANCIAL IMPACT ON MCCAW WOULD BE A BOOST TO THE MARKETING EFFORTS OF TWO COMPETING DATA SERVICES ARDIS A JOINT VENTURE OF MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP AND RAM MOBILE DATA OWNED BY BELLSOUTH CORP OF ATLANTA AND RAM BROADCASTING OF WOODBRIDGE NJ SOME POTENTIAL CUSTOMERS OF BOTH SERVICES HAVE HELD OFF IN SIGNING UP PREFERRING TO WAIT AND EVALUATE CDPD THE BIG PROBLEM FOR CDPD IS THAT IT HAS BEEN OVERHYPED AND UNDERPRODUCED SAID ANDREW SEYBOLD A MARKET ANALYST IN BOULDER CREEK CALIF WHO CRITICIZED THE CDPD HOOPLA 9403010054 940301 WHAT'S NEWS WORLDWIDE US FIGHTER JETS SHOT DOWN FOUR SERB ATTACK PLANES OVER CENTRAL BOSNIA NATO SAID THE PLANES WERE SHOT DOWN AFTER THEY BLATANTLY VIOLATED THE WESTERN ALLIANCE'S NOFLY ZONE THE ACTION MARKED NATO'S FIRST MILITARY ENGAGEMENT IN BOSNIA AND THE ALLIANCE'S FIRST OFFENSIVE ACTION IN ITS 44YEAR HISTORY US ADM BOORDA NATO COMMANDER FOR SOUTHERN EUROPE SAID THE ENCOUNTER 50 MILES WEST OF SARAJEVO SHOULD UNDERSCORE THE WEST'S RESOLVE CLINTON PLAYED DOWN ANY SUGGESTION THAT THE ATTACK WAS A PRELUDE TO DEEPER MILITARY ACTION SINCE THE NOFLY ZONE TOOK EFFECT LAST APRIL IN BOSNIA OVER 1000 VIOLATIONS HAVE BEEN REPORTED TO THE UN THOUGH ALMOST ALL HAVE BEEN BY HELICOPTERS CIA AGENT AMES RECEIVED WELL OVER 25 MILLION FROM MOSCOW THE US SAID THE AMOUNT THAT ALDRICH AMES ALLEGEDLY RECEIVED FOR SPYING WAS SIGNIFICANTLY MORE THAN THE ORIGINAL ESTIMATE OF 15 MILLION FEDERAL PROSECUTORS SAID FURTHERMORE ACCORDING TO A PROSECUTION DOCUMENT AMES'S WIFE HAS ADMITTED THE COUPLE'S INVOLVEMENT IN ESPIONAGE PEOPLE FAMILIAR WITH THE CIA OFFICER'S CAREER SAY HE WORKED WITH SEVERAL MAJOR SOVIET DEFECTORS DURING THE 1980S AND MORE RECENTLY TRAVELED IN FORMER EAST BLOC COUNTRIES AMID THE FALLOUT FROM THE AMES CASE THE RUSSIAN GOVERNMENT EXPELLED A US DIPLOMAT AND FIRED THE HEAD OF ITS COUNTERINTELLIGENCE SERVICE THE PLO REJECTED AN ISRAELI OFFER TO ALLOW FOREIGN OBSERVERS IN OCCUPIED LANDS THE PLO'S EXECUTIVE COMMITTEE TURNED DOWN ISRAELI CONCESSIONS AIMED AT COAXING PALESTINIANS BACK TO THE PEACE TABLE IN THE WAKE OF A MOSQUE MASSACRE SAYING THE PROPOSALS DIDN'T GO FAR ENOUGH IN PROTECTING PALESTINIANS ISRAEL REPORTEDLY HAD OFFERED TO DISARM SETTLERS AND EXPAND A PROPOSED PALESTINIAN POLICE FORCE BUT THE MAIN STUMBLING BLOCK WAS AN OFFER MADE BY ISRAEL'S RABIN TO ALLOW UNARMED INTERNATIONAL OBSERVERS IN THE OCCUPIED TERRITORIES WE STILL INSIST ON MILITARY AND ARMED PEACEKEEPING FORCE TO PROTECT OUR PEOPLE A TOP PLO OFFICIAL SAID AFTER THE COMMITTEE REJECTED THE REPORTED OFFER NEW YORK UNIVERSITY WAS BEQUEATHED SIR HAROLD ACTON'S ESTATE IN TUSCANY AS WELL AS ART AND CASH NYU SAID THE BRITISH HISTORIAN'S GIFT IS PROBABLY THE BIGGEST EVER GIVEN TO AN AMERICAN UNIVERSITY BUT THE SCHOOL'S PRESIDENT SAID HE COULDN'T PLACE A PRECISE DOLLAR VALUE ON THE LAND VILLAS AND ART THE SUPREME COURT WILL DECIDE WHETHER A STATUTE BARRING CHILD PORNOGRAPHY VIOLATES THE FIRST AMENDMENT THE JUSTICE DEPARTMENT IS APPEALING A LOWER COURT'S RULING THAT THE LAW IS UNCONSTITUTIONAL BECAUSE IT DOESN'T CLEARLY REQUIRE THAT PROSECUTORS PROVE THAT DISTRIBUTORS OR BUYERS KNEW THE MATERIAL DEPICTED MINORS CLINTON TRAVELED TO CHICAGO IN A BID TO BOOST ROSTENKOWSKI'S REELECTION PROSPECTS DECLARING THAT THE WHITE HOUSE NEEDED THE CONGRESSMAN TO GET ITS HEALTHCARE AND WELFARE INITIATIVES PASSED THE ILLINOIS DEMOCRAT UNDER INVESTIGATION FOR POSSIBLE MISUSE OF FUNDS FACES A PRIMARY ELECTION ON MARCH 15 THE US PLANS TO ANNOUNCE TODAY A LATE MARCH DATE FOR THE RESUMPTION OF HIGHLEVEL TALKS WITH NORTH KOREA AND CANCELLATION OF MILITARY EXERCISES WITH SOUTH KOREA A STATE DEPARTMENT OFFICIAL SAID BUT THE RESUMPTION WOULD BE RECONSIDERED IF UN EXPERTS FIND PYONGYANG PURSUED A NUCLEAR PROGRAM IN VIOLATION OF INTERNATIONAL COMMITMENTS SEN PACKWOOD SHOULDN'T BE ALLOWED TO WITHHOLD HIS DIARIES FROM THE SENATE ETHICS COMMITTEE WHILE HE APPEALS ITS SUBPOENA THE PANEL'S LAWYERS TOLD CHIEF JUSTICE REHNQUIST ON FRIDAY THE OREGON REPUBLICAN ASKED REHNQUIST TO BLOCK A FEDERAL JUDGE'S RULING THAT ORDERED THE DIARIES TO BE TURNED OVER TO THE COMMITTEE MEXICAN REBEL LEADERS STEPPED UP THEIR RHETORIC ABOUT THE NEED FOR REFORM DESPITE REPORTS THAT THEY MAY REACH A TENTATIVE PEACE PACT WITH THE GOVERNMENT AS EARLY AS TODAY THE CHIEF REBEL SPOKESMAN INSISTED THAT THE CURRENT GOVERNMENT MUST RESIGN THE FEDERAL BRADY LAW TOOK EFFECT REQUIRING FIREARMS DEALERS IN 32 STATES TO TAKE NEW STEPS TO KEEP FELONS FROM BUYING HANDGUNS MANY DEALERS CRITICIZED THE COMPLEXITY OF THE NEW RULES FOR BACKGROUND CHECKS NEEDED FOR GUN BUYERS THE GOVERNMENT SAID 18 STATES ARE EXEMPT BECAUSE THEY ALREADY HAVE ACCEPTABLE REQUIREMENTS 9403010053 940301 TECHNOLOGY BRIEF APPLE COMPUTER INC DOSCOMPATIBLE QUADRA PC STARTS TO BE SHIPPED APPLE COMPUTER INC CUPERTINO CALIF SAID IT BEGAN SHIPPING ITS MACINTOSH QUADRA 610 DOS COMPATIBLE PERSONAL COMPUTER WHICH ENABLES USERS TO SWITCH FROM A MACINTOSH OPERATING SYSTEM TO DOS AND WINDOWSCOMPATIBLE SOFTWARE IN A COUPLE OF KEYSTROKES APPLE SAID USERS OF ITS OLDER QUADRA 610 AND CENTRIS 610 COMPUTERS CAN UPGRADE THEIR MACHINES WITH A DOSCOMPATIBLE CARD COSTING 399 9403010051 940301 TECHNOLOGY BRIEF GENENTECH INC COMPANY RECEIVES PATENT FOR TISSUE GROWTH FACTOR GENENTECH INC SAID IT WON A US PATENT COVERING A VERSATILE TISSUE GROWTH FACTOR MADE BY GENESPLICING TECHNOLOGY THE SUBSTANCE CALLED TRANSFORMING GROWTH FACTOR BETA OR TGFB PROMOTES SKIN AND BONE GROWTH AND MAY PROVE USEFUL FOR HEALING WOUNDS LATER THIS YEAR THE BIOTECHNOLOGY COMPANY SAID IT PLANS TO BEGIN A CLINICAL TRIAL OF TGFB FOR THE PREVENTION OF MUCOSITIS OR SEVERE MOUTH ULCERS THAT OCCUR AS A SIDE EFFECT OF CANCER CHEMOTHERAPY GENENTECH'S PATENT COVERS MATERIALS AND TECHNIQUES FOR MAKING A SYNTHETIC VERSION OF TGFB THROUGH GENESPLICING OR RECOMBINANT DNA TECHNOLOGY GENENTECH BASED IN SOUTH SAN FRANCISCO CALIF IS A LICENSEE OF A TGFB PATENT COVERING THE NATURAL PROTEIN HELD BY THE NATIONAL INSTITUTES OF HEALTH IN BETHESDA MD 9403010050 940301 NEW JERSEY SEEKS BAN ON STOCKBROKER UNIT OF WOLF FINANCIAL NEWARK NJ NEW JERSEY AUTHORITIES SAID THEY ARE SEEKING TO BAN STOCKBROKER FN WOLF & CO OF NEW YORK A SUBSIDIARY OF WOLF FINANCIAL GROUP INC FOR ALLEGEDLY SELLING UNREGISTERED SECURITIES THE STATE'S ATTORNEY GENERAL CONSUMER AFFAIRS DIRECTOR AND BUREAU OF SECURITIES ALSO SAID THEY ARE SEEKING UNSPECIFIED CIVIL MONETARY PENALTIES FOR ALLEGED VIOLATION OF NEW JERSEY SECURITIES LAWS FN WOLF HAD NO IMMEDIATE COMMENT THE ACTION IS THE LATEST TROUBLE FOR WOLF IN DECEMBER A NATIONAL ASSOCIATION OF SECURITIES DEALERS REGIONAL COMMITTEE RECOMMENDED A 22 MILLION FINE AGAINST THE BROKERAGE FIRM FOR ALLEGED SECURITIES VIOLATIONS THE ACTION CONCERNED THE SAME STOCK FOR WHICH NEW JERSEY AUTHORITIES BROUGHT THEIR COMPLAINT TREATS INTERNATIONAL ENTERPRISES INC A CANADIAN FOOD COMPANY LAST SEPTEMBER THE SECURITIES AND EXCHANGE COMMISSION ACCUSED WOLF OF CHARGING EXCESSIVE MARKUPS ON NEWS COMMUNICATIONS INC STOCK EARLIER THE SEC CHARGED WOLF WITH USING MISLEADING SALES TACTICS TO PROMOTE SHARES OF TREATS INTERNATIONAL THE NEW JERSEY COMPLAINT ALSO CHARGES FRANKLIN N WOLF THE BROKERAGE FIRM'S CHAIRMAN AND JAMES H PETRANTIS ITS CHIEF FINANCIAL OFFICER WITH ENGAGING IN UNLAWFUL SALE OF UNREGISTERED SECURITIES THE COMPLAINT ALSO CHARGES THAT THE BROKERAGE FIRM AND MESSRS WOLF AND PETRANTIS ARE REPEAT VIOLATORS OF SECURITIES LAWS AND ARE NOT QUALIFIED TO BE IN THE SECURITIES BUSINESS IN NEW JERSEY MR PETRANTIS IN ADDITION WAS CHARGED WITH FAILING TO COMPLY WITH AN ORDER FROM THE BUREAU AND WITH OBSTRUCTING A BUREAU INVESTIGATION THE COMPLAINT ALLEGES THAT FN WOLF SOLD 22 NEW JERSEY RESIDENTS 27500 SHARES IN TREATS INTERNATIONAL A STOCK THAT WAS NOT REGISTERED IN THE STATE THEY PAID 1050 TO 1275 A SHARE FOR THE STOCK WHICH NOW SELLS FOR ABOUT 1 9403010049 940301 BUSINESS BRIEF INCO LTD MANITOBA NICKEL PRODUCTION TO RESUME FULL SCHEDULE INCO LTD TORONTO SAID IT WILL RESUME FULL OPERATIONS AT ITS MANITOBA NICKEL OPERATION FOUR MONTHS AHEAD OF SCHEDULE THE COMPANY ATTRIBUTED THE MOVE TO INCREASED DEMAND FOR A HIGHLY REFINED GRADE OF THE METAL THAT IS USED MAINLY FOR PLATING AUTOMOBILE TRIM AN INCO SPOKESMAN SAID THE MOVE WILL RESULT IN ONLY A SMALL INCREASE IN PRODUCTION OF A SPECIALIZED NICKEL PRODUCT THAT SHOULD HAVE NEGLIGIBLE IMPACT ON THE WORLD'S GLUTTED NICKEL MARKETS INCO AND OTHER NICKEL PRODUCERS HAVE CURTAILED THEIR OUTPUT IN RECENT MONTHS BECAUSE OF A SLUMP IN METALS PRICES INCO WHICH SUPPLIES ABOUT A FOURTH OF THE WORLD'S NICKEL SAID ITS MANITOBA EMPLOYEES WILL RESUME WORKING FIVE DAYS A WEEK BEGINNING MARCH 7 WORKERS THERE HAD PREVIOUSLY BEEN SCHEDULED TO OPERATE ON A FOURDAY WORKWEEK UNTIL SUMMER ALSO INCO SAID IT RESUMED PRODUCTION YESTERDAY AT ITS ONTARIO NICKEL FACILITY WHICH WAS TEMPORARILY SHUT DOWN AT THE BEGINNING OF THE YEAR THE CURTAILED OPERATIONS WERE AIMED AT TRIMMING ABOUT 40 MILLION POUNDS IN THIS YEAR'S FIRST QUARTER INCO SAID IT PLANS TO PRODUCE A TOTAL OF 350 MILLION POUNDS OF NICKEL THIS YEAR DOWN FROM 367 MILLION POUNDS IN 1993 9403010048 940301 BUSINESS BRIEF TYCO TOYS INC FIRM TO LAY OFF 51 WORKERS OR 5 OF US WORK FORCE TYCO TOYS INC MT LAUREL NJ SAID IT WILL LAY OFF 51 EMPLOYEES OR 5 OF ITS US WORK FORCE AS PART OF A CONTINUING MOVE TO REVERSE A SERIES OF LOSSES THE CUTS THE COMPANY'S FIRST IN A DECADE WON'T REQUIRE A SPECIAL CHARGE SAID JILL KRUTICK TOY ANALYST FOR SALOMON BROS BUT THE ANNOUNCEMENT IS ILLTIMED COMING ON THE HEELS OF A VERY UPBEAT PREVIEW OF ITS 1994 TOY INTRODUCTIONS AT A TOY CONVENTION IN NEW YORK TWO WEEKS AGO SHE SAID THE TOY MAKER WHICH HASN'T COME UP WITH A HOTSELLING TOY IN RECENT MONTHS IS SET TO EMBARK ON ONE OF ITS BIGGEST PRODUCT LAUNCHES THIS YEAR THE COMPANY SAID IT WILL LAY OFF 34 EMPLOYEES AT ITS NEW JERSEY HEADQUARTERS AND 17 AT ITS OPERATIONS IN THE PORTLAND ORE AREA TYCO SAID THE STAFF CUT WILL REDUCE ITS FIXED COST STRUCTURE AND WILL INCREASE OPERATING EFFICIENCIES AND IMPROVE PERFORMANCE THROUGHOUT THE COMPANY IN JANUARY TYCO ANNOUNCED A 26 MILLION CHARGE TAKEN IN THE FOURTH QUARTER OF 1993 CLOSING ITS ITALIAN SUBSIDIARY AND SHRINKING ITS GERMAN SUBSIDIARY 9403010047 940301 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 9/16 HIGH 3 3/8 LOW 3 3/8 NEAR CLOSING BID 3 7/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 31 DAYS 346 32 TO 59 DAYS 355 60 TO 89 DAYS 360 90 TO 129 DAYS 368 130 TO 149 DAYS 372 150 TO 179 DAYS 380 180 TO 239 DAYS 385 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 352 30 DAYS 365 60 DAYS 372 90 DAYS CERTIFICATES OF DEPOSIT 281 ONE MONTH 289 TWO MONTHS 294 THREE MONTHS 315 SIX MONTHS 350 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 355 ONE MONTH 370 THREE MONTHS 395 SIX MONTHS BANKERS ACCEPTANCES 346 30 DAYS 353 60 DAYS 360 90 DAYS 368 120 DAYS 375 150 DAYS 375 180 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 3/4 THREE MONTHS 4 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 595 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 735 60 DAYS 741 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 732 60 DAYS 741 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 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 9403010046 940301 INTERNATIONAL BRIEF SUNTORY LTD JAPANESE WHISKY DISTILLER POSTS DROP IN PRETAX PROFIT PRETAX PROFIT FOR THE PERIOD WAS 918 BILLION YEN 877 MILLION DOWN FROM 968 BILLION YEN A YEAR EARLIER SALES FELL 28 TO 73728 BILLION YEN THE COMPANY IS PREDICTING THAT BEER SALES WILL FALL 52 TO 17890 BILLION YEN DURING 1994 FROM 18872 BILLION YEN DURING 1993 REFLECTING SUNTORY'S DECISION TO END A LICENSE AGREEMENT WITH US BREWER ANHEUSERBUSCH COS UNDER WHICH SUNTORY PRODUCED BUDWEISER BEER IN JAPAN 9403010045 940301 BUSINESS BRIEF PROCTER & GAMBLE CO OFFER OF 98 MILLION IS MADE FOR REST OF ARGENTINE FIRM PROCTER & GAMBLE CO CINCINNATI SAID IT OFFERED 97 MILLION PESOS 98 MILLION FOR THE 14 STAKE OF ARGENTINE CLEANING PRODUCTS COMPANY COMPANIA QUIMICA SA THAT IT DOESN'T ALREADY OWN THE CONSUMER PRODUCTS GIANT SAID IN A STATEMENT THAT ITS PROCTER & GAMBLE INTERAMERICAS INC UNIT IS WILLING TO PAY 10214 PESOS A SHARE FOR THE 949251 OUTSTANDING CLASS A AND B SHARES IN COMPANIA QUIMICA COMPANIA QUIMICA PRODUCES THREE LIQUID DISH DETERGENT BRANDS IN ARGENTINA INCLUDING THE TOP TWO AS PREVIOUSLY REPORTED P&G IN LATE DECEMBER ACQUIRED 73 OF THE COMPANY FROM BUNGE & BORN SA A HOLDING COMPANY BASED IN BUENOS AIRES FOR 525 MILLION PESOS AND PURCHASED AN ADDITIONAL 13 OF THE COMPANY FROM NEWCAS INTERNATIONAL SA AND CLARA SA FOR 93 MILLION PESOS 9403010044 940301 BUSINESS BRIEF TYSON FOODS INC COURT IS ASKED TO INVALIDATE WLR'S TAKEOVER DEFENSES TYSON FOODS INC SPRINGDALE ARK ASKED A VIRGINIA FEDERAL COURT TO INVALIDATE TAKEOVER DEFENSES ERECTED BY WLR FOODS INC WHICH TYSON HAS PROPOSED TO ACQUIRE FOR 30 A SHARE OR 329 MILLION THE WLR DEFENSES INCLUDING A MEASURE THAT COULD SUBSTANTIALLY DILUTE THE HOLDINGS OF ANY PARTY THAT ACQUIRES 15 OR MORE OF THE HINTON VA COMPANY'S STOCK WERE PUT UP AFTER TYSON ANNOUNCED ITS UNSOLICITED BID FOR THE CHICKEN AND TURKEY PROCESSOR IN JANUARY TYSON THE NATION'S BIGGEST POULTRY PROCESSOR IS ALSO ASKING THE COURT TO INVALIDATE COMPENSATION PACKAGES THAT WOULD BE GRANTED TO WLR STAFF MEMBERS IN THE EVENT OF A CHANGE IN CONTROL OF THE COMPANY IN ADDITION TYSON WANTS THE COURT TO DECLARE UNCONSTITUTIONAL A VIRGINIA ANTITAKEOVER STATUTE A SPOKESWOMAN FOR WLR CALLED TYSON'S FILING TOTALLY WITHOUT MERIT AND SAID THE TAKEOVER DEFENSES ARE IN THE BEST INTERESTS OF WLR'S SHAREHOLDERS IN NASDAQ STOCK MARKET TRADING WLR CLOSED AT 2850 UP 625 CENTS WHILE TYSON CLOSED AT 2150 UP 25 CENTS BEFORE TYSON'S BID WAS ANNOUNCED JAN 24 WLR'S STOCK CLOSED AT 19 A SHARE 9403010043 940301 MICRON TECHNOLOGY SPLITS STOCK BOISE IDAHO MICRON TECHNOLOGY INC SAID ITS DIRECTORS DECLARED A 5FOR2 STOCK SPLIT OF COMMON SHARES PAYABLE APRIL 18 TO STOCK OF RECORD APRIL 1 THE COMPANY CURRENTLY HAS ABOUT 403 MILLION COMMON SHARES OUTSTANDING 9403010042 940301 TECHNOLOGY BRIEF AGOURON PHARMACEUTICALS INC JAPAN TOBACCO PACT INCREASES INVESTMENT IN DRUG RESEARCH AGOURON PHARMACEUTICALS INC SAID JAPAN TOBACCO INC CONDITIONALLY AGREED TO DOUBLE ITS MAXIMUM INVESTMENT IN RESEARCH TO MORE THAN 56 MILLION ALLOWING AGOURON TO EXPAND ANTIVIRALDRUG STUDY JAPAN TOBACCO WILL PAY 7 MILLION UPFRONT THEREAFTER THE PARTNER WILL MAKE ANTIVIRALPROGRAM PAYMENTS OF AT LEAST 8 MILLION OVER TWO YEARS OR OF MORE THAN 21 MILLION OVER FOUR YEARS IF TWO CERTAIN PRECLINICAL RESEARCH MILESTONES ARE MET SEPARATELY AGOURON SAID IT THIS WEEK WILL REVEAL THE STRUCTURE OF THE RHINOVIRUS 3C PROTEASE AN ENZYME CRITICAL IN THE REPLICATION CYCLE OF VIRUSES RESPONSIBLE FOR THE COMMON COLD THE JAPAN TOBACCO PACT IS TO DESIGN COMPOUNDS TO INACTIVATE PROTEASE ENZYMES REQUIRED FOR REPLICATION OF HEPATITIS C HERPES AND THE RHINOVIRUSES RESPONSIBLE FOR UPPERRESPIRATORY INFECTION AGOURON HAS RECEIVED 98 MILLION OF A POTENTIAL 28 MILLION FROM A 1992 DRUGRESEARCH PACT IN WHICH THE JAPANESE COMPANY ACQUIRED A 2 STAKE IN AGOURON 9403010041 940301 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES FEDERAL SYSTEMS UNIT WINS 13 BILLION IRS CONTRACT THE INTERNAL REVENUE SERVICE AWARDED A 13 BILLION DOCUMENTPROCESSING SYSTEM CONTRACT TO THE FEDERAL SYSTEMS CO UNIT OF INTERNATIONAL BUSINESS MACHINES CORP LORAL CORP AGREED IN DECEMBER TO PURCHASE FEDERAL SYSTEMS FROM IBM FOR 16 BILLION IN CASH THE SALE IS EXPECTED TO CLOSE THIS QUARTER THE UNIT HAD ABOUT 2 BILLION IN REVENUE IN 1994 THE IRS SAID THE CONTRACT WILL COVER TECHNOLOGY THAT WILL TURN TAXPAYERFILED TAX FORMS INTO ELECTRONIC IMAGES STARTING IN 1996 THE CONTRACT IS FOR 15 YEARS AND COVERS HARDWARE SOFTWARE TESTING TRAINING IMPLEMENTATION AND MAINTENANCE 9403010040 940301 WHO'S NEWS BIOSAFETY SYSTEMS INC BIOSAFETY SYSTEMS INC SAN DIEGO MILTON L PATRICK WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SIX MEMBERS MR PATRICK 65 YEARS OLD IS THE PRINCIPAL OF PATRICK & ASSOCIATES A MANAGEMENT CONSULTING CONCERN AND A PRINCIPAL OF CROBERN GROUP A HEALTHCARE INVESTMENT AND MANAGEMENT ADVISORY FIRM BIOSAFETY SYSTEMS MAKES AND MARKETS HEALTHCARE SAFETY PRODUCTS 9403010039 940301 ANNTAYLOR 4WEEK SALES ROSE NEW YORK ANNTAYLOR STORES CORP SAID COMPARABLESTORE SALES FOR THE FOUR WEEKS ENDED FEB 26 INCREASED 12 FROM THE SAME PERIOD LAST YEAR NET SALES FOR THE PERIOD TOTALED 374 MILLION UP 24 FROM 302 MILLION FOR THE FOUR WEEKS ENDED FEB 27 1993 9403010038 940301 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 16 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9403010037 940301 BUSINESS BRIEF JM SMUCKER CO ACCORD WITH KELLOGG IS SET TO BUY FROZENPIE BUSINESS JM SMUCKER CO SAID IT AGREED IN PRINCIPLE TO ACQUIRE THE MRS SMITH'S FROZENPIE BUSINESS FROM KELLOGG CO TERMS WEREN'T DISCLOSED BUT KELLOGG SAID IT HOPED TO COMPLETE THE TRANSACTION IN ABOUT A MONTH THE ACQUISITION WOULD PUT SMUCKER AN ORRVILLE OHIO MAKER OF PRESERVES JELLIES AND FRUIT JUICES INTO THE PIE BUSINESS A SINGLE PRODUCTION PLANT AT POTTSTOWN PA IS INVOLVED ANALYSTS ESTIMATE MRS SMITH'S PIE SALES AT LESS THAN 150 MILLION THE BRAND HAS ABOUT A 59 SHARE OF THE US FROZENPIE MARKET SMUCKER CHAIRMAN TIM SMUCKER IS A KELLOGG DIRECTOR AND THE BATTLE CREEK MICH CEREAL COMPANY SAID IT TOOK EVERY ACTION TO ENSURE THERE WAS NO CONFLICT OF INTEREST IN THE DEAL A COMPANY SPOKESMAN SAID KELLOGG HAD CONDUCTED AN EXTENDED AUCTION PROCESS FOR THE BUSINESS 9403010036 940301 TRIAD SYSTEMS GETS CONTRACT LIVERMORE CALIF TRIAD SYSTEMS CORP SAID IT RECEIVED A CONTRACT FOR ITS ELECTRONIC CATALOG OF AUTOMOTIVE PARTS AND PRICES FROM DALLASBASED CHIEF AUTO PARTS INC FOR USE IN CHIEF'S 500OUTLET CHAIN TERMS WEREN'T DISCLOSED TRIAD SAID ITS CATALOG PROVIDES AUTOMOTIVE AFTERMARKET OUTLETS WITH CURRENT INFORMATION ON MORE THAN TWO MILLION PARTS INCLUDING THOSE FOR FOREIGN AND DOMESTIC VEHICLES PRODUCED SINCE 1968 9403010035 940301 FOREIGN EXCHANGE DOLLAR SLIPS AGAINST MOST CURRENCIES ON SIGNS FED IS UNLIKELY TO LIFT RATES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLIPPED AGAINST MOST MAJOR CURRENCIES YESTERDAY DROPPING BRIEFLY TO A TWOMONTH LOW AGAINST THE MARK ON INDICATIONS THE US FEDERAL RESERVE WON'T BE RAISING INTEREST RATES ANY TIME SOON THE US CURRENCY REACTED TO THE LATEST INCIDENCE OF HOSTILITIES IN BOSNIA BY RISING TO AN INTRADAY HIGH ON NEWS THAT US FIGHTER JETS SHOT DOWN FOUR BOSNIAN SERB AIRCRAFT IN THE FIRST MILITARY ACTION BY THE NORTH ATLANTIC TREATY ORGANIZATION TO ENFORCE A NOFLY ZONE DECLARED IN OCTOBER 1992 TRADERS SAID THE DOLLAR'S ATTRACTION AS A SAFE HAVEN CURRENCY QUICKLY DISSIPATED IN THE FACE OF GROWING SKEPTICISM THAT ANOTHER US RATE INCREASE WAS IMMINENT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17041 MARKS DOWN FROM 17100 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10450 YEN DOWN FROM 10485 YEN STERLING WAS TRADING AT 14855 DOWN FROM 14880 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10455 YEN AND AT 17046 MARKS THE DOLLAR HIT AN INTRADAY HIGH OF 17182 MARKS ON THE BOSNIA REPORTS THAT TWO US F16S SHOT DOWN FOUR BOSNIAN SERB PLANES THAT HAD ATTACKED A BOSNIAN GOVERNMENT MUNITIONS FACTORY IN VIOLATION OF THE UN'S NOFLY ZONE WHILE THE THREAT OF AN ESCALATING CONFLICT IN BOSNIA SENT THE MARKET RUSHING TO BUY DOLLARS THE CURRENCY ENCOUNTERED HEAVY RESISTANCE AROUND THE 17180 MARK LEVEL THERE WAS A BIT OF REACTION TO BOSNIA IN THE BEGINNING SAID CHARLES COSSENTINO ASSISTANT VICE PRESIDENT OF DEUTSCHE GENOSSENSCHAFTSBANK IN NEW YORK BUT HE ADDED THAT WITH NO THREAT OF THE CONFLICT SPREADING FURTHER THE MARKET QUICKLY TURNED ITS ATTENTION ELSEWHERE IT MOVED TO TEST THE DOLLAR'S DOWNSIDE WITH THE CURRENCY FALLING BRIEFLY THROUGH THE PSYCHOLOGICALLY IMPORTANT 17000MARK SUPPORT LEVEL AFTER FED GOVERNOR LAWRENCE LINDSEY SAID THAT LOW INFLATION MAKES THE FED LESS LIKELY TO RAISE SHORTTERM INTEREST RATES SOON THE COMBINATION OF MR LINDSEY'S COMMENTS ABOUT RATES AND JITTERS OVER US ECONOMIC DATA HELPED PUSH THE DOLLAR TO AN INTRADAY LOW OF 16999 MARKS IN THE MIDDLE OF THE NORTH AMERICAN TRADING DAY IT WAS THE FIRST TIME THE DOLLAR HAD DROPPED BELOW 17000 MARKS SINCE DEC 29 WHEN IT TOUCHED 16990 MARKS THE FED NUDGED UP SHORTTERM RATES TO 325 FROM 3 ON FEB 4 AND MR LINDSEY SAID THAT MOVE MAY MAKE IT MORE LIKELY THAT ANY ELEVATION IN RATES WILL BE LOWER AND SHORTER THAN THEY OTHERWISE WOULD HAVE BEEN MR LINDSEY'S COMMENTS WERE THE MAIN REASON BEHIND THE DOLLAR'S RETREAT AGAINST THE MARK MR COSSENTINO SAID HE NOTED THAT MR LINDSEY WHO HAS A REPUTATION AS A MILD INFLATION HAWK HELPED TO COOL RECENT SPECULATION THAT THE FED WAS BRACING FOR ANOTHER SOCALLED PREEMPTIVE STRIKE AGAINST INFLATION TRADERS ALSO NOTED THAT FED RATEINCREASE SPECULATION WAS FURTHER DAMPED BY RELEASE OF THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO'S INDEX OF AREA BUSINESS ACTIVITY THE ASSOCIATION SAID AREA BUSINESS ACTIVITY ROSE TO 603 IN FEBRUARY FROM AN UNREVISED 596 IN JANUARY BUT A CLOSELY WATCHED SUBINDEX ON THE PRICES PAID BY MANUFACTURERS FOR MATERIALS FELL TO 567 IN FEBRUARY FROM 593 IN JANUARY THE MARKET INTERPRETED THAT DECLINE AS ONE FURTHER SIGN THAT THERE IS LITTLE TO PRESSURE THE FED TOWARD ANOTHER BOOST IN SHORTTERM INTEREST RATES TRADERS SAID THE DATA ALSO WERE SEEN AS OFFERING IMPORTANT CLUES TO THE MORE IMPORTANT NATIONAL ASSOCIATION OF PRODUCTION MANUFACTURERS INDEX TO BE RELEASED TODAY THE MARKET APPEARED SATISFIED TO TRADE IN RATHER NARROW RANGES ON SKITTISHNESS OVER THE MORE SIGNIFICANT DATA TO COME OUT YESTERDAY SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT THE BANK OF BOSTON THAT DATA ALSO INCLUDE REVISIONS TO THE US FIXED WEIGHT DEFLATOR FOR THE FOURTH QUARTER AND US FOURTHQUARTER GROSS DOMESTIC PRODUCT DATA OR GDP THE TOTAL VALUE OF ALL GOODS AND SERVICES 9403010034 940301 TECHNOLOGY BROADCASTERS GAIN SUPPORT FOR BILL TO OPEN SPECTRUM BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BROADCASTERS ARE GAINING SUPPORT FOR LEGISLATION THAT WOULD LET THEM USE PART OF THEIR SPECTRUM FOR NEW SERVICES INCLUDING PAYPERVIEW TV FARE OR DATA TRANSMISSIONS THE BROADCASTERS' PROPOSAL COULD BE ATTACHED TO A BILL AIMED AT DISMANTLING LEGAL AND REGULATORY BARRIERS THAT HAVE KEPT THE TELEPHONE AND CABLE TELEVISION INDUSTRIES FROM COMPETING HEADTOHEAD THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE IS SCHEDULED TO BEGIN VOTING ON ITS BILL TODAY AND BROADCASTERS HAVE BEEN WORKING HARD AT LINING UP VOTES IF THEY CAN'T COUNT ON ENOUGH SUPPORTERS THEY WILL PROBABLY PUT OFF THE PROVISION UNTIL THE BILL REACHES THE FULL ENERGY AND COMMERCE COMMITTEE WE MAY CHOOSE TO INTRODUCE IT IN FULL COMMITTEE SAID JIM MAY EXECUTIVE VICE PRESIDENT IN CHARGE OF GOVERNMENT RELATIONS FOR THE NATIONAL ASSOCIATION OF BROADCASTERS BROADCASTERS APPEAR CONFIDENT THAT THEIR PROVISION WILL WIN IN THE COMMITTEE AND ACCORDING TO SENIOR CONGRESSIONAL STAFF MEMBERS HAVEN'T BEEN WILLING TO COMPROMISE MUCH A SENATE TELECOMMUNICATIONS BILL WOULD LET BROADCASTERS USE A PORTION OF THEIR SPECTRUM FOR PROGRAMRELATED SERVICES PERHAPS TRANSMITTING SPORTS SCORES OR OTHER STATISTICS DURING SPORTING EVENTS OR ADDITIONAL INFORMATION FROM ADVERTISERS BUT THE VERSION BROADCASTERS HOPE TO SEE INTRODUCED IN THE HOUSE GOES WELL BEYOND SERVICES RELATED TO TYPICAL TV FARE IN THE PAST FEW WEEKS THE BROADCASTERS' ASSOCIATION HAS BEEN TRYING TO PERSUADE MEMBERS OF THE HOUSE ENERGY AND COMMERCE COMMITTEE TO LET TV AND RADIOSTATION OWNERS REAP THE BENEFITS OF NEW TECHNOLOGIES BROADCASTERS ENVISION USING NEW DIGITALCOMPRESSION TECHNOLOGIES TO SPLIT THEIR SIGNALS INTO SIX OR MORE SEPARATE CHANNELS SOME OF WHICH COULD DELIVER PAYPERVIEW MOVIES SPORTS OR OTHER ENTERTAINMENT VIA RELATIVELY INEXPENSIVE SETTOP BOXES NEW CHANNELS ALSO COULD PROVIDE DATA SERVICES FOR BUSINESS CUSTOMERS BROADCASTERS VIEW THE NEW TECHNOLOGIES WHICH ARE EXPECTED TO BE AVAILABLE WITHIN FIVE YEARS OR SO AS A NEW LANE ON THE INFORMATION SUPERHIGHWAY THAT WILL LET THEM COMPETE AGAINST CABLE AND TELEPHONE COMPANIES FOR SOME ADVANCED TELECOMMUNICATIONS SERVICES REVENUE RAISED FROM NEW SERVICES SOME ARGUE COULD HELP FOOT THE HUGE BILLS FOR CONVERTING TO HIGHDEFINITION TELEVISION OTHERS SEE IT AS AN ALTERNATIVE TO HDTV EITHER WAY BROADCASTERS NEED CONGRESS TO FREE THEM FROM EXISTING REGULATIONS THAT LIMIT HOW THEY CAN USE THEIR ASSIGNED AIRWAVES IN ADDITION TO THE AIRWAVES USED FOR THEIR EXISTING STATIONS THE FEDERAL COMMUNICATIONS COMMISSION DECIDED TWO YEARS AGO TO GIVE TV STATIONS ADDITIONAL SPECTRUM TO USE TEMPORARILY AS THEY SHIFTED TO HDTV THE NEW TECHNOLOGIES WOULD LET BROADCASTERS TEST WHETHER CONSUMERS WANT HDTV OR WOULD PREFER OTHER SERVICES ALTHOUGH THE BROADCASTERS' PLAN CALLS FOR PAYING THE GOVERNMENT FOR USE OF THE SPECTRUM BASED ON WHAT IT WOULD LIKELY GO FOR AT A PUBLIC AUCTION OPPONENTS VIEW IT AS A SPECTRUM GRAB WHAT'S THE VALUE OF SOMETHING IF YOU'RE THE ONLY PERSON WHO CAN BUY IT ASKS ANDREW SCHWARTZMAN HEAD OF THE MEDIA ACCESS PROJECT A PUBLICINTEREST LAW FIRM THEY WANT TO COMPETE ON THE SUPERHIGHWAY BUT THEY DON'T WANT ANYBODY TO COMPETE AGAINST THEM FOR THE SPECTRUM HE BELIEVES SPECTRUM THAT IS FREED UP BY NEW TECHNOLOGY SHOULD BE SUBJECT TO FCC AUCTIONS SO THAT MINORITIES AND OTHERS WHO WANT STATIONS WOULD GET A CHANCE TO GET THEM 9403010033 940301 BUSINESS BRIEF PRIME HOSPITALITY CORP REAL ESTATE DEVELOPER FUNDS 25 MILLION IN SETTLEMENT PRIME HOSPITALITY CORP FAIRFIELD NJ SAID REAL ESTATE DEVELOPER ALLAN V ROSE FUNDED THE FULL 25 MILLION REQUIRED UNDER A SETTLEMENT OF THE HOTEL COMPANY'S SUIT TO COLLECT ON THE GUARANTY OF A NOTE THE FUNDS ARE HELD IN ESCROW PENDING AN ORDER FROM THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF FLORIDA DETERMINING PRIME'S EXCLUSIVE RIGHT TO THE PROCEEDS PRIME REACHED A SETTLEMENT WITH MR ROSE AND ANOTHER DEVELOPER LAST JUNE THAT CALLED FOR AN AFFILIATE OF MR ROSE TO PURCHASE THE NOTE IN QUESTION FOR 25 MILLION PLUS THE CASH PROCEEDS OF THE SALE OF ABOUT 900000 SHARES OF PRIME STOCK OWNED BY MR ROSE THE LAWSUIT WAS FILED BY PRIME IN JULY 1992 WHEN IT WAS PRIME MOTOR INNS INC 9403010032 940301 JB'S RESTAURANTS TO SELL STAKE SALT LAKE CITY JB'S RESTAURANTS INC SAID IT PLANS TO SELL A MAJORITY OR ALL OF ITS COMMON SHARES IN HOMETOWN BUFFET INC AS PART OF THE PUBLIC OFFERING PREVIOUSLY ANNOUNCED BY HOMETOWN BUFFET DON M MCCOMAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF JB'S RESTAURANTS SAID THE COMPANY INTENDS TO USE THE PROCEEDS FROM THE SALE OF ITS HOMETOWN BUFFET SHARES TO DEVELOP HOMETOWN BUFFET RESTAURANTS REPAY DEBT AND INVEST IN JB'S RESTAURANTS 9403010031 940301 IBM INTRODUCES LINE AS PART OF NEW PUSH IN PERIPHERALS MARKET NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS EXPANDING ITS PUSH INTO THE PERIPHERALS MARKET THE COMPANY ANNOUNCED A LINE OF HARD DRIVES FAX BOARDS KEYBOARDS AND OTHER ACCESSORIES AND REPLACEMENT PARTS CALLED OPTIONS BY IBM DESIGNED FOR ALL IBMCOMPATIBLE PCS THE US MARKET FOR SUCH PC PERIPHERALS TOTALS ABOUT 10 BILLION A YEAR AND IS GROWING ABOUT 20 ESTIMATES STEVE STARKEY OF THE IBM PC CO UNIT THE PRODUCT MANAGER FOR THE NEW LINE IBM ENTERED THE PERIPHERALS MARKET FOR NONIBM PCS LAST JUNE WHEN IT BEGAN SELLING ITS EASY OPTIONS LINE OF COMPUTER JOYSTICKS MICE AND OTHER ITEMS IN RETAIL STORES EASY OPTIONS IS AIMED AT CONSUMERS WHILE THE NEW LINE TARGETS THE MUCH LARGER COMMERCIAL EDUCATION AND GOVERNMENT MARKETS IT WILL BE SOLD THROUGH RESELLERS SUCH AS COMPUTERLAND AS WELL AS THROUGH IBM PC'S TOLLFREE ORDER NUMBER MANY OF THE EASY OPTIONS PRODUCTS ARE MADE FOR IBM BY OTHER COMPANIES IN CONTRAST THE NEW LINE WILL CAPITALIZE ON IBM'S STRENGTHS IN SUCH AREAS AS HARDDRIVE DESIGN AND COMPUTERCHIP MANUFACTURING MR STARKEY SAYS FOR THE FIRST TIME FOR EXAMPLE IBM'S STORAGE SYSTEMS DIVISION WILL MAKE ITS PRODUCTS WIDELY AVAILABLE PREVIOUSLY MOST OF ITS HARD DRIVES TAPE DRIVES AND OTHER DATASTORAGE PRODUCTS WERE USED BY IBM IN ITS OWN PRODUCTS THE MOVE IS PART OF IBM'S DRIVE TO BOOST ITS SALES AND PROFITS BY SELLING THROUGH ALL DISTRIBUTION CHANNELS BUT IBM FACES SOME TOUGH ESTABLISHED COMPETITORS SUCH AS HARDDRIVE MAKER SEAGATE TECHNOLOGY AND MODEMMAKER INTEL CORP IN ADDITION IBM MUST OVERCOME ANY LINGERING PERCEPTIONS THAT ITS PERIPHERALS WON'T WORK WITH NONIBM PCS SAYS RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORP IBM ALSO NEEDS TO ENSURE THAT ITS PRODUCTS ARE AT LEAST AS PROFITABLE TO RESELLERS AS ARE COMPETITOR'S BUT IF IT OVERCOMES THESE HURDLES IT'S A BIG BUSINESS OPPORTUNITY MR ZWETCHKENBAUM SAYS BECAUSE PERIPHERALS CARRY HIGHER PROFIT MARGINS THAN PCS 9403010030 940301 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AIR LA INC AN OFFERING OF 16 MILLION COMMON SHARES FOR 4 EACH VIA SPELMAN & CO HOMETOWN BUFFET INC AN OFFERING OF 3521468 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 528220 ADDITIONAL SHARES VIA MONTGOMERY SECURITIES AND ALEX BROWN & SONS INC PROFESSIONAL BANCORP INC AN OFFERING OF 400000 COMMON SHARES AND 5 MILLION OF CONVERTIBLE SUBORDINATED RESET NOTES WITH AN OVERALLOTMENT OPTION FOR UP TO AN ADDITIONAL 60000 COMMON SHARES AND UP TO AN ADDITIONAL 750000 OF NOTES VIA VAN KASPER & CO 9403010029 940301 BUSINESS BRIEF HYDE ATHLETIC INDUSTRIES INC NET FOR QUARTER FELL SHARPLY ON DECLINE IN SAUCONY SALES HYDE ATHLETIC INDUSTRIES INC CITING A DECLINE IN SALES OF ITS LEADING BRAND OF SAUCONY SNEAKERS REPORTED A SHARP DECLINE IN FOURTHQUARTER NET INCOME THE PEABODY MASS ATHLETICFOOTWEAR MAKER SAID NET INCOME WAS 276004 OR FOUR CENTS A SHARE DOWN FROM 19 MILLION OR 36 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FELL 18 TO 213 MILLION FROM 26 MILLION A YEAR EARLIER THE COMPANY SAID SALES IN ITS SAUCONY DIVISION FELL 16 TO 132 MILLION FROM 158 MILLION A YEAR EARLIER THE BRAND APPARENTLY IS COMING OFF A BOOST RECEIVED AFTER ONE OF ITS SHOES WAS RATED NO 1 IN A RUNNINGSHOE CATEGORY BY CONSUMER REPORTS MAGAZINE IN MAY 1992 9403010028 940301 US JUDGE GIVES IMMUNITY TO BANKER IN BNL CASE ATLANTA AP A FEDERAL JUDGE GRANTED CONVICTED BANKER CHRISTOPHER P DROGOUL IMMUNITY FROM FURTHER PROSECUTION SO HE CAN TESTIFY BEFORE A GRAND JURY INVESTIGATING HIS FORMER EMPLOYER AN ITALIAN BANK HIS ATTORNEY SAID US DISTRICT JUDGE G ERNEST TIDWELL SIGNED THE ORDER GIVING IMMUNITY TO MR DROGOUL A MAJOR FIGURE IN THE CASE INVOLVING 5 BILLION IN LOANS TO IRAQ BY THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO APPARENTLY THEY HAVE CONVENED A GRAND JURY AT LEAST IN ATLANTA WHICH IS SCHEDULED TO COMMENCE TOMORROW MORNING MR DROGOUL'S ATTORNEY ROBERT M SIMELS SAID PROSECUTORS SAY IRAQ USED AT LEAST SOME OF THE MONEY OBTAINED UNDER A US GOVERNMENT PROGRAM TO HELP FINANCE AGRICULTURAL EXPORTS TO BUY WEAPONS BEFORE ITS INVASION OF KUWAIT IN 1990 MR DROGOUL PLEADED GUILTY TO WIRE FRAUD AND SUBMITTING FALSE REPORTS TO BANK REGULATORS HE IS CURRENTLY SERVING THE FINAL MONTHS OF A 37MONTH PRISON TERM 9403010027 940301 BUSINESS BRIEF CANONIE ENVIRONMENTAL SERVICES MERGER WITH BCM IS SET DETAILS ARE NOT DISCLOSED CANONIE ENVIRONMENTAL SERVICES CORP DALLAS SAID IT AGREED TO MERGE WITH BCM ENGINEERS INC A CLOSELY HELD ENVIRONMENTAL CONSULTING CONCERN WITH 1993 REVENUE EXCEEDING 60 MILLION CANONIE DIDN'T DISCLOSE TERMS OF THE TRANSACTION EXCEPT TO SAY THEY INCLUDE THE PAYMENT OF CASH AND PREFERRED STOCK BCM IS BASED IN PLYMOUTH MEETING PA CANONIE WHICH PROVIDES ENGINEERING SERVICES TO HELP CLEAN UP HAZARDOUSWASTE SITES ALSO SAID IT EXPECTS TO POST A LOSS OF ABOUT 24 MILLION OR 42 CENTS A SHARE FOR THE FOURTH QUARTER ENDED YESTERDAY A YEAR EARLIER THE COMPANY HAD A LOSS OF 91 MILLION OR 159 A SHARE AFTER 106 MILLION IN PRETAX SPECIAL CHARGES 9403010026 940301 BUSINESS BRIEF QUALCOMM INC PACT IS SET WITH SONY UNIT FOR WIRELESSPHONE VENTURE QUALCOMM INC HAS ENLISTED A UNIT OF SONY CORP TO HELP DESIGN AND MANUFACTURE COMPUTERIZED WIRELESS TELEPHONES THE COMPANIES SAID THEY WILL SET UP A FACTORY IN SAN DIEGO AS PART OF A JOINT VENTURE BACKED WITH 52 MILLION FROM THE TWO QUALCOMM WILL OWN 51 OF THE VENTURE SONY ELECTRONICS INC WILL OWN 49 THE TWO COMPANIES WILL INDEPENDENTLY MARKET PHONE PRODUCTS QUALCOMM IS THE INVENTOR OF CODE MULTIPLE ACCESS OR CDMA A DIGITALCOMMUNICATIONS TECHNOLOGY THAT IS EXPECTED TO OFFER 10 TO 20 TIMES THE CAPACITY OF EXISTING CELLULAR SYSTEMS IT HAS BEEN SEEKING TO OUTFLANK A RIVAL TECHNOLOGY TIME DIVISION MULTIPLE ACCESS AS AN INDUSTRY STANDARD THE VENTURE QUALCOMM PERSONAL ELECTRONICS WILL DEVELOP POCKET PHONES AND OTHER PRODUCTS FOR BOTH DIGITAL CELLULAR APPLICATIONS AND PERSONAL COMMUNICATIONS SERVICES ANOTHER WIRELESS COMMUNICATIONS TECHNOLOGY THE FACTORY IS EXPECTED TO BEGIN PRODUCING PHONES LATE THIS YEAR AND TO BE IN FULL PRODUCTION IN THE FIRST QUARTER OF NEXT YEAR QUALCOMM SAID 9403010025 940301 BUSINESS BRIEF NICHOLS INSTITUTE FOURTHQUARTER NET LOSS OF 102 MILLION IS POSTED NICHOLS INSTITUTE SAN JUAN CAPISTRANO CALIF REPORTED A FOURTHQUARTER NET LOSS OF 102 MILLION PUTTING THE COMPANY IN VIOLATION OF CERTAIN DEBT COVENANTS THE LOSS INCLUDED 16 MILLION OF CHARGES RELATED TO AMONG OTHER THINGS CONTINUING CONSOLIDATION OF THE COMPANY'S MEDICAL LABORATORIES IN CERTAIN REGIONS THE NET LOSS WAS EQUAL TO 61 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 19 MILLION OR 11 CENTS A SHARE REVENUE FELL 3 TO 683 MILLION FROM 705 MILLION THE COMPANY SAID DISCUSSIONS WITH DEBTHOLDERS ARE UNDER WAY COVERING THE COMPANY'S 65 MILLION OF DEBT HELD BY THREE INSURANCE COMPANIES THE LENDERS WOULD LIKE TO CHANGE CERTAIN TERMS TO IMPROVE THEIR COMFORT LEVEL SAID GEORGE BRAGG NICHOLS PRESIDENT AND CHIEF EXECUTIVE OFFICER NICHOLS INSTITUTE'S CASH FLOW LIQUIDITY AND THE BASIC BUSINESS ARE ALL GOOD HE SAID ADDING THAT THE COMPANY HASN'T MISSED ANY DEBT PAYMENTS 9403010024 940301 BUSINESS BRIEF GRUBB & ELLIS CO BROKERAGE CONCERN NARROWED NET LOSS IN FOURTH QUARTER GRUBB & ELLIS CO SAN FRANCISCO NARROWED ITS NET LOSS IN THE FOURTH QUARTER TO 134 MILLION OR 344 A SHARE FROM 498 MILLION OR 1386 A SHARE A YEAR AGO REVENUE DECLINED TO 578 MILLION FROM 609 MILLION THE REAL ESTATE BROKERAGE COMPANY'S RESULTS REFLECT SPECIAL CHARGES AND UNUSUAL ITEMS TOTALING 135 MILLION FOR THE FOURTH QUARTER REVENUE WAS ADJUSTED FOR THE SALE OF THE COMPANY'S NORTHERN CALIFORNIA RESIDENTIAL BROKERAGE OPERATIONS AND REAL ESTATE ADVISORY BUSINESS INCREASES IN FOURTHQUARTER REVENUE FROM THE COMPANY'S COMMERCIAL BROKERAGE REMAINING SOUTHERN CALIFORNIA RESIDENTIAL BROKERAGE MORTGAGE BROKERAGE AND PROPERTY MANAGEMENT WERE OFFSET BY DECLINES IN REVENUE FROM ITS APPRAISAL AND CONSULTING SERVICES FOR THE YEAR 1993 GRUBB & ELLIS TRIMMED ITS NET LOSS TO 182 MILLION OR 508 A SHARE FROM 597 MILLION OR 1701 A SHARE REVENUE DECREASED TO 2017 MILLION FROM 2242 MILLION IN 1992 9403010023 940301 CORRECTIONS & AMPLIFICATIONS ERNST JAPHET FORMER CHAIRMAN OF ISRAEL'S BANK LEUMI VOLUNTARILY RETURNED TO ISRAEL RECENTLY TO FACE POSSIBLE TRIAL IN CONNECTION WITH THE 1983 STOCK SCANDAL A FEB 17 ARTICLE ON THE CONVICTIONS OF OTHER FORMER OFFICERS OF ISRAELI BANKS SAID INCORRECTLY THAT MR JAPHET HAD BEEN EXTRADITED 9403010022 940301 BUSINESS BRIEF H&R BLOCK INC FISCAL THIRDQUARTER PROFIT INCLUDES GAIN FROM A SALE H&R BLOCK INC REPORTED A PROFIT FOR ITS FISCAL THIRD QUARTER AFTER INCLUDING PROCEEDS FROM THE SALE OF ITS INTERIM SERVICES INC UNIT BEFORE THE GAIN H&R BLOCK HAD A LOSS FROM CONTINUING OPERATIONS OF 115 MILLION BLOCK OF KANSAS CITY MO THE WORLD'S LARGEST TAXPREPARATION CONCERN SAID EARNINGS TOTALED 125 MILLION OR 12 CENTS A SHARE ON REVENUE OF 2294 MILLION COMPARED WITH NET OF 86 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 1907 MILLION PREVIOUSLY THE LATEST EARNINGS INCLUDED THE GAIN OF 273 MILLION FROM THE INITIAL PUBLIC OFFERING OF INTERIM FOR THE NINE MONTHS ENDED JAN 31 LOSSES FROM CONTINUING OPERATIONS TOTALED 304 MILLION COMPARED WITH A YEARAGO LOSS OF 107 MILLION 9403010021 940301 COMMODITIES PRICES OF PRECIOUS METALS RISE AMID CONCERNS OVER USSERBIA CLASH PROSPECT FOR INFLATION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES ROSE ON NERVOUSNESS ABOUT CLASHES BETWEEN SERBIAN AND US JET FIGHTERS IN BOSNIA AND GENERAL WORRIES ABOUT A POTENTIAL RETURN OF INFLATION TO THE ECONOMY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS UP 270 TO 38250 AN OUNCE WHILE THE ACTIVELY TRADED MAY SILVERFUTURES CONTRACT ROSE 128 CENTS TO 539 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE MEANWHILE PLATINUM FOR APRIL DELIVERY CLIMBED 430 TO 39770 AN OUNCE THE DOWNING OF FOUR SERBIAN JETS BY US F16 FIGHTERS SUPPOSEDLY TRIGGERED BUYING OF GOLD AS A SAFEHAVEN' INVESTMENT SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC BUT MR SAVAIKO AND OTHER ANALYSTS SAID THE BUYING PROBABLY WOULD HAVE OCCURRED ANYWAY BECAUSE OF LIQUIDATION OF SHORT POSITIONS OR WAGERS THAT GOLD PRICES WOULD FALL AMID RENEWED FEARS OF INCREASING INFLATION THE JOURNAL OF COMMERCE INDEX OF 18 INDUSTRIAL COMMODITIES A POPULAR BAROMETER OF INFLATION AMONG ECONOMISTS HAS BEEN RISING LATELY YESTERDAY THE KNIGHTRIDDER COMMODITY RESEARCH BUREAU INDEX ALSO ROSE SETTLING AT 22755 SURGES IN THE PRICES OF COMMODITIES IN GENERAL AND ESPECIALLY GOLD ARE VIEWED AS EARLY INDICATORS OF INFLATION GOLD IS A HEDGE AGAINST ECONOMIC AND POLITICAL UNCERTAINTY SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN THERE'S A LOT OF POLITICAL UNREST SIMMERING AROUND THE WORLD AND A LOT SPECULATION ABOUT AN UPTURN OF INFLATION THAT GAVE PEOPLE REASON TO BUY PRECIOUS METALS FOR WEEKS THE PRICE OF GOLD HAS BEEN TRADING IN A TIGHT 375TO390 RANGE IF THE CRB INDEX WERE TO SHOOT THROUGH 229 OR 230 INFLATION FEARS WOULD GROW AND LEAD TO AN ADVANCE IN GOLD PRICES MR SAVAIKO SAID IF HOWEVER THE CRB CAN'T CLEAR THAT LEVEL IT WOULD INDICATE THE FEDERAL RESERVE IS KEEPING INFLATION CONCERNS IN CHECK AND PRECIOUSMETALS PRICES MIGHT FALL IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS WHEAT PRICES SANK AMID FORECASTS FOR RAIN IN SOME DRY AREAS OF THE SOUTHERN PLAINS WHERE THE HARD RED WINTERWHEAT CROP IS BEGINNING TO EMERGE FROM DORMANCY IN TRADING AT THE KANSAS CITY BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY SLIPPED 125 CENTS A BUSHEL TO SETTLE AT 355 A BUSHEL SOYBEAN PRICES SETTLED MOSTLY LOWER WHILE CORN PRICES SETTLED MIXED SPECULATION IS GROWING THAT THE US GOVERNMENT MIGHT OFFER GRAINBUYING CREDIT GUARANTEES TO MEXICO WHICH IS A MAJOR IMPORTER OF US CORN BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL SAID HE EXPECTS MEXICAN PURCHASES OF US CORN TO RISE BY ABOUT ONE MILLION METRIC TONS THIS YEAR OVER 1993 ENERGY HEATINGOIL FUTURES PRICES ROSE AS RENEWED COLD WEATHER ACROSS THE MIDWEST AND THE NORTHEAST PROPPED UP PRICES OTHERWISE MARKET PARTICIPANTS SAID THERE WAS LITTLE NEWS TO MOVE ENERGY CONTRACTS IN EITHER DIRECTION TRADERS NOTED THAT THE MARCH HEATINGOIL CONTRACT WHICH EXPIRED YESTERDAY WAS THE ONLY HEATINGOIL CONTRACT TO RISE THUS THEY QUESTIONED WHETHER THE STRONG PRICE ENVIRONMENT WOULD LAST MUCH LONGER PARTICULARLY AS WARMER WEATHER IS BOUND TO ARRIVE SOME TIME SOON NATURAL GAS PRICES FELL DESPITE THE COLD WEATHER MEANWHILE CRUDE OIL AND GASOLINE PRICES SLID 9403010020 940301 CLINTON COMES TO COLD CHICAGO TO ADD NEEDED HEAT TO ROSTENKOWSKI CAMPAIGN BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IN AN EXTRAORDINARY EFFORT TO BOOST REP DAN ROSTENKOWSKI'S PRECARIOUS REELECTION PROSPECTS PRESIDENT CLINTON BRAVED THE COLD AND SNOW HERE TO DECLARE THAT THE ADMINISTRATION'S TOP LEGISLATIVE PRIORITIES WERE BOUND UP IN THE LAWMAKER'S FATE MR CLINTON WAS AMPLIFYING WHAT THE ILLINOIS DEMOCRAT HAS BEEN TELLING HIS CONSTITUENTS THAT HE IS AN IMPORTANT NATIONAL LEADER WHO SHOULD BE RETURNED TO WASHINGTON DESPITE HIS RECENT BRUSHES WITH THE LAW THE PRESIDENT MADE CLEAR THAT MR ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE WAS PIVOTAL TO HIS TWO BIGGEST INITIATIVES THIS YEAR OVERHAULING THE HEALTHCARE AND WELFARE SYSTEMS WITHOUT HIM MR CLINTON SAID WE WOULD NOT BE ABLE TO DO THE THINGS THAT WE HAVE TO DO TO MEET OUR OBLIGATIONS TO THE FUTURE IN THIS COMING YEAR IN HEALTH CARE WELFARE REFORM AND MANY OTHER AREAS IN OTHER CIRCUMSTANCES SUCH GLOWING WORDS WOULD CONSTITUTE AN ENDORSEMENT AND IN EVERY PRACTICAL SENSE THEY WERE BUT MR CLINTON DIDN'T ACTUALLY USE THE WORD ENDORSEMENT AND DIDN'T DIRECTLY REFER TO THE MARCH 15 PRIMARY AT WHICH MR ROSTENKOWSKI'S SEAT IS BEING SOUGHT BY OTHER DEMOCRATS FOR ONE THING IT IS RARE FOR A PRESIDENT TO INTERVENE IN A PARTY PRIMARY CONTEST FOR ANOTHER MR ROSTENKOWSKI IS UNDER INVESTIGATION BY MR CLINTON'S OWN JUSTICE DEPARTMENT FOR POSSIBLE MISUSE OF HIS CONGRESSIONAL AND CAMPAIGN FUNDS THAT CHANCY COMBINATION LARGELY EXPLAINS WHY MR ROSTENKOWSKI SAID HE DIDN'T ANTICIPATE GETTING THE PRESIDENT'S ENDORSEMENT AND WHY THE PRESIDENT IGNORED A SHOUTED QUESTION ON THE SUBJECT BUT THE VOTERS IN THE FIFTH CONGRESSIONAL DISTRICT COULDN'T HELP BUT GET THE POINT MESSRS CLINTON AND ROSTENKOWSKI WERE NEARCONSTANT COMPANIONS DURING THE PRESIDENT'S VISIT HERE ALONG WITH CHICAGO MAYOR RICHARD DALEY A STRONG ROSTENKOWSKI ALLY THE CONGRESSMAN MET THE PRESIDENT AT THE AIRPORT TRAVELED WITH HIM IN HIS LIMOUSINE AND PARTICIPATED SIDE BY SIDE WITH HIM IN TWO PUBLIC EVENTS THE PRESIDENT AND THE CHAIRMAN COULDN'T STOP SAYING NICE THINGS ABOUT EACH OTHER ALL DAY LEADERSHIP WAS WHAT THEY BOTH CREDITED EACH OTHER FOR HAVING MOST IF YOU WANT ME TO GET THINGS DONE YOU HAVE TO SAY TO THE MEMBERS OF CONGRESS ACT' MR CLINTON SAID THE ONE PERSON YOU DON'T HAVE TO SAY IT TO IS DAN ROSTENKOWSKI IT'S IN HIS BONES I THINK MR ROSTENKOWSKI CONCLUDED AT THE END OF ONE EVENT THAT THIS HAS BEEN MOST REWARDING 9403010019 940301 CROCKER REALTY TO BUY BUILDING BOCA RATON FLA CROCKER REALTY INVESTORS INC SAID IT AGREED TO ACQUIRE THE 280000SQUAREFOOT ONE BOCA PLACE THE COMPANY SAID THE PURCHASE PRICE IS ABOUT 30 MILLION AND THE SELLER IS GLADES POND CO THE REALESTATE INVESTMENT TRUST ALSO SAID IT HAS SECURED A COMMITMENT FROM GENERAL ELECTRIC CO'S GENERAL ELECTRIC CREDIT CORP TO FINANCE THE PROPERTY CROCKER REALTY SAID ONE BOCA PLACE IS 95 LEASED 9403010017 940301 CANDY MAN WONDERS IS ROCK IDOL TARNISHING THE LEMONHEAD NAME BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL SEX DRUGS AND HARD CANDY IT'S ONLY ROCKANDROLL BUT AN UPANDCOMING ROCK BAND HAS PUT A SMALL CHICAGOBASED CANDY COMPANY IN AN AWKWARD POSITION THE LEMONHEADS A BAND ENJOYING ITS 15 MINUTES OF FAME TOOK ITS NAME FROM A SMALL YELLOW CANDY FIRST LAUNCHED BY THE FERRARA PAN CANDY CO 35 YEARS AGO EACH BOX OF THE CANDY DISPLAYS THE FACE OF A BEAMING CHERUBIC LEMON THANKS LARGELY TO LEAD SINGER EVAN DANDO A FLAXENHAIRED 26YEAROLD ADONIS THE LEMONHEADS HAVE A RABID FOLLOWING AMONG TEENAGERS AN AGE GROUP THAT SPENDS MUCH OF ITS DISPOSABLE INCOME ON CANDY DURING CONCERTS IN A RITUALISTIC ACKNOWLEDGEMENT OF THE BAND'S ORIGINS MANIACAL FANS PELT MR DANDO WITH THE LEMONSHAPED CANDIES WHILE IT MAY SEEM LIKE A MATCH MADE IN LICENSING HEAVEN ONE MINOR ISSUE HAS MADE FERRARA LEERY OF A PUBLIC EMBRACE MR DANDO A GRADUATE OF THE CHARLES BARKLEY I AM NOT A ROLE MODEL SCHOOL OF CELEBRITY SPOKESMANSHIP ACKNOWLEDGED IN INTERVIEWS THAT HE HAD HAD A FLING WITH CONTROLLED SUBSTANCES SALVATORE FERRARA PRESIDENT OF FERRARA PAN CANDY DOESN'T KNOW WHETHER TO SEEK A PROMOTIONAL RELATIONSHIP WITH THE BAND OR ASK THE BAND TO STOP USING THE NAME LEMONHEAD A REGISTERED TRADEMARK HE WORRIES THAT FORBIDDING THE LEMONHEADS FROM USING THE NAME COULD GET THE WRONG PEOPLE UPSET AT YOU THEY DO HAVE A FOLLOWING WHICH INCLUDES MR FERRARA'S OWN TEENAGE DAUGHTERS THEY THINK THEY ARE COOL HE SAYS THE DILEMMA HAS PREVENTED MR FERRARA THE IMAGECONSCIOUS GRANDSON OF THE COMPANY'S FOUNDER FROM EVEN CONTACTING THE BAND MR FERRARA IS FAR MORE COMFORTABLE WITH LORRIE MORGAN A COUNTRYMUSIC STAR WITH A PREDILECTION FOR ATOMIC FIRE BALLS ANOTHER FERRARA DELICACY WHICH COME IN BOXES ADORNED WITH MUSHROOM CLOUDS SHE LOOKS A LITTLE BIT LIKE FLORENCE HENDERSON SAYS MR FERRARA MS MORGAN RECENTLY AGREED TO APPEAR AT FERRARA'S BOOTH AT A CANDY TRADE SHOW HE SAYS THAT HAS THE LEMONHEADS FEELING A BIT LEFT OUT THEIR MANAGER JANET BILLIG CONCEDES THAT MR DANDO HAD A LIMITED FLING WITH DRUGS BUT IT'S DONE SHE SAYS IN FACT SHE ADDS MR DANDO HAS SAID HE'S OPEN TO ENDORSING THE CANDY HE LOVES THE LITTLE LEMONHEAD GUY SHE SAYS 9403010016 940301 WHO'S NEWS FOSTER WHEELER CORP FOSTER WHEELER CORP CLINTON NJ MARTHA J CLARK 44 YEARS OLD WAS NAMED A DIRECTOR OF THIS DESIGN ENGINEERING CONSTRUCTION AND ENVIRONMENTALSERVICES CONCERN FILLING A VACANCY ON THE 13MEMBER BOARD MS CLARK IS PRESIDENT OF PRUDENTIAL ASSET MANAGEMENT CO 9403010015 940301 MARKETING & MEDIA MARKETSCAN FRITOLAY HAS EAGLE SNACKS OUT ON LIMB BY RICHARD GIBSON FRITOLAY JUST KEEPS RAKING IN THE CHIPS THE PEPSICO INC UNIT IS PILING UP SUCH MASSIVE WINNINGS IN THE HIGHSTAKES SALTYSNACKS GAME THAT ONE RIVAL BORDEN INC ALREADY HAS DECIDED TO FOLD NOW SOME WONDER HOW MUCH MORE ANHEUSERBUSCH COS' EAGLE SNACKS UNIT IS WILLING TO LOSE EAGLE HAS BEEN SELLING CHIPS NUTS AND PRETZELS FOR 15 YEARS BUT HAS YET TO POST A PROFIT ITS MARKET SHARE REMAINS IN THE SINGLE DIGITS AND SOME ANALYSTS THINK EAGLE'S BEST BET WOULD BE TO BUY BORDEN'S SNACK BUSINESS WHICH IS ON THE BLOCK AS PART OF A MASSIVE CORPORATE RESTRUCTURING FRITO MEANWHILE CONTINUES TO DEFY THOSE WHO VIEW CATEGORY LEADERS AS LUMBERING VULNERABLE GIANTS IN THE PAST YEAR FRITO IN DALLAS HAS ADDED MORE THAN FOUR SHARE POINTS TO ITS POTATOCHIP BUSINESS AND TWO POINTS TO ITS TORTILLACHIP SHARE GAINS VIRTUALLY UNPARALLELED IN THE FOOD BUSINESS EACH SHARE POINT IN THE 5 BILLION CHIPS MARKET MEANS 50 MILLION IN SALES DATA COLLECTED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE FROM US SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS FOR THE 52 WEEKS ENDED JAN 2 SHOW FRITOLAY WITH A 41 SHARE OF THE 21 BILLION POTATOCHIP BUSINESS UP FROM 36 A YEAR EARLIER THAT ACHIEVEMENT IS ALL THE MORE IMPRESSIVE IN THAT FRITO'S BAGS ARE THE PRICIEST ON THE SHELF ACCORDING TO INFOSCAN WHILE FRITO ADDED SHARE BORDEN LOST IT AND EAGLE STOOD STILL IN TORTILLA CHIPS A CATEGORY THAT GREW 10 IN THE PAST YEAR FRITO BOOSTED ITS SHARE TO A WHOPPING 67 AS IT APPROACHED 1 BILLION IN SALES ITS BRANDS INCLUDE DORITOS TOSTITOS AND SANTITAS EAGLE BY CONTRAST MANAGED TO ADD ONLY TWOTENTHS OF A SHARE POINT BORDEN LOST NEARLY A HALF POINT FRITO ALSO PICKED UP 35 SHARE POINTS IN THE FAST GROWING PRETZEL MARKET EAGLE'S PRETZEL SALES ALSO HAVE TAKEN OFF ALTHOUGH THE BRAND REMAINS WELL BEHIND PRIVATELABEL PRODUCTS IN SALTED NUTS EAGLE TRAILED RJR NABISCO HOLDINGS CORP'S PLANTERS BRAND PROCTER & GAMBLE CO'S FISHER NUTS AND PRIVATELABEL NUTS IN THE 52WEEK PERIOD GIVEN SUCH TOUGH COMPETITION WHAT IS EAGLE'S FLIGHT PLAN NEW PRODUCTS CONTINUING AGGRESSIVE PRICING AND EXPANDED DISTRIBUTION SAYS ITS PRESIDENT KEVIN BOWLER HE PREDICTS THAT EAGLE WILL ADD ABOUT A HALF SHARE POINT THIS YEAR PARTLY BECAUSE THE LINE WILL EXPAND ITS PRESENCE IN CONVENIENCE STORES A BIG SNACKS VENUE BY YEAR'S END MR BOWLER HOPES THAT EAGLE WILL FINALLY BE MAKING MONEY AS FOR BORDEN'S SNACK BUSINESS HE ACKNOWLEDGES THAT EAGLE HAS EYED IT BUT A SENIOR ANHEUSER EXECUTIVE SAYS ANY ACQUISITION WOULD LIKELY BE OF PRODUCTION FACILITIES RATHER THAN BORDEN'S REGIONAL BRANDS EAGLE RECENTLY ANNOUNCED IT WILL PRODUCE OLD EL PASOBRAND TORTILLA CHIPS UNDER A LICENSING ARRANGEMENT WITH PET INC WHICH MANUFACTURES THE NATION'S LEADING SUPERMARKET MEXICAN FOOD LINE THE ACCORD BETWEEN PET AND ANHEUSER BOTH OF ST LOUIS ALSO CALLS FOR EAGLE TO MARKET OLD EL PASO SALSAS AND BEAN DIPS A GROWING ADJUNCT TO THE TORTILLACHIPS BUSINESS FRITO MEANWHILE IS DISTRIBUTING TACO BELL SALSAS USING THE NAME OF PEPSICO'S MEXICAN FASTFOOD CHAIN EAGLE'S BIGGEST DISADVANTAGE MAY BE THAT NEXT TO ANHEUSER'S LEADING BEER OPERATIONS SNACKS ARE A GRAIN OF SALT ANHEUSER'S 1993 SALES TOTALED 115 BILLION WHILE EAGLE'S WERE AN ESTIMATED 350 MILLION ACCORDING TO INFOSCAN THE BREWER DOESN'T DISCLOSE SNACK UNIT NUMBERS WHILE THIRSTCREATING FOODS ARE SEEMINGLY A NATURAL FOR A BEVERAGE COMPANY EAGLE SNACKS RATES ONLY A BRIEF MENTION IN ANHEUSER'S ANNUAL REPORTS EAGLE IS DISTRIBUTED BY BEER TRUCK DRIVERS BUT EAGLE'S SALES AND DISTRIBUTION CAN ONLY FOCUS ON LIMITED OBJECTIVES AT ONE TIME MR BOWLER NOTES IN APPARENT ADMISSION OF THE UNIT'S BACKSEAT STATUS NOWHERE IS THE DISPARITY BETWEEN PEPSICO'S AND ANHEUSER'S SNACK BUSINESSES MORE EVIDENT THAN IN THEIR ADVERTISING BUDGETS IN THE FIRST NINE MONTHS OF 1993 FRITO SPENT 507 MILLION ON ADVERTISING ACCORDING TO COMPETITIVE MEDIA REPORTING BY COMPARISON EAGLE SHELLED OUT ALMOST NOTHING SIMILARLY IN 1992 WHEN EAGLE SPENT 13 MILLION FRITO COMMITTED 651 MILLION TO MEDIA ADVERTISING LAST YEAR WE DID MINIMAL ADVERTISING AS WE SHIFTED MORE OF OUR FOCUS INTO TRADE PROMOTION ACTIVITY MR BOWLER SAYS ALLUDING TO THE COSTLY PRICE WAR RAGING IN THE SALTY SNACKS AISLE WHERE 1 OFF PER BAG ISN'T UNUSUAL INDEED PRICING DATA FROM INFOSCAN INDICATE THAT DURING THE 12 WEEKS ENDED JAN 2 A PERIOD WHEN MILLIONS OF CONSUMERS COZY UP TO THE TV SET AND HAVE HOLIDAY PARTIES 63 OF FRITO'S POTATO CHIPS WERE SOLD AT DISCOUNT EAGLE COUNTERED BY SELLING 65 OF ITS VOLUME FOR LESS THAN FULL PRICE THE INFOSCAN DATA SHOW EVEN SO THE CONSUMER STILL THINKS WE'RE MORE EXPENSIVE THAN WE ARE MR BOWLER SAYS EAGLE ALSO WILL CONTINUE TO SPEND MORE MONEY IN TRADE TO EXPAND OUR SPACE IN STORES BECAUSE AS WE EXPAND OUR LINE IT DOESN'T MAKE SENSE TO ADVERTISE IF WE DON'T HAVE THE SPACE EFFORTS TO CREATE MORE TOPOFMIND AWARENESS FOR THE EAGLE BRAND NAME ARE UNDER WAY HE ADDS DECLINING TO DIVULGE DETAILS ANHEUSER DOES LIMITED CROSSPROMOTION WITH EAGLE THE CHIPS MADE A BUD BOWL CAMEO APPEARANCE DURING THE RECENT SUPER BOWL TELECAST EAGLE ALSO JOINED PEPSI ARCHENEMY COCACOLA CO FOR INSTORE GAME PROMOTIONS AS FOR THE TONY RANDALLJACK KLUGMAN ODD COUPLE DUO ONCE FEATURED IN EAGLE TV COMMERCIALS MR BOWLER SAYS BOTH ACTORS ARE ON CALL FOR SPECIAL APPEARANCES 9403010014 940301 BUSINESS BRIEF LEXMARK INTERNATIONAL INC COMPANY BEGINS SELLING COMPUTERS WITH OWN LABEL LEXMARK INTERNATIONAL INC SAID IT HAS BEGUN SELLING ITS PORTABLE COMPUTERS UNDER ITS OWN LABEL FOR THE FIRST TIME LEXMARK BASED IN LEXINGTON KY SAID IT IS OFFERING THREE DIFFERENT MODELS OF NOTEBOOK AND SUBNOTEBOOK COMPUTERS PRICED FROM 749 TO 3899 THEY WILL BE OFFERED THROUGH A TOLLFREE ORDERING LINE AS WELL AS THROUGH A LEXMARK CATALOG PREVIOUSLY LEXMARK COMPUTERS WERE SOLD ONLY BY OTHER COMPANIES UNDER VARIOUS BRAND NAMES THE FORMER INTERNATIONAL BUSINESS MACHINES CORP SUBSIDIARY ALSO MAKES PRINTERS AND KEYBOARDS 9403010013 940301 COURT DISMISSES BID BY ROGERS FOR ACCESS TO MACLEAN'S DATA TORONTO MACLEAN HUNTER LTD SAID AN ONTARIO COURT HAS DISMISSED A REQUEST BY ROGERS COMMUNICATIONS INC FOR ACCESS TO CONFIDENTIAL DATA ABOUT MACLEAN HUNTER'S CABLETELEVISION OPERATIONS AS REPORTED ROGERS IS OFFERING TO ACQUIRE ALL THE SHARES OF MACLEAN HUNTER A TORONTOBASED CABLE TELEVISION PRINTING AND PUBLISHING CONCERN IN A BID VALUED AT 279 BILLION CANADIAN DOLLARS US207 BILLION ROGERS A TORONTOBASED TELECOMMUNICATIONS CONCERN HAD SOUGHT A COURT ORDER FORCING MACLEAN HUNTER TO INCLUDE IT IN ANY AUCTION OF THE LATTER'S CANADIAN CABLETELEVISION ASSETS AND GIVE IT ACCESS TO DATA ROOMS SET UP FOR INTERESTED BIDDERS FOR OTHER MACLEANHUNTER OPERATIONS MACLEAN HUNTER ASKED ROGERS TO SIGN A CONFIDENTIALITY AGREEMENT BEFORE GIVING IT ACCESS TO THE DATA BUT ROGERS OBJECTED TO A CLAUSE REQUIRING IT TO AGREE TO A STANDSTILL PERIOD OF 90 DAYS OR MORE AS A CONDITION OF GAINING ACCESS ROGERS'S C17ASHARE OFFER IS SET TO EXPIRE MARCH 15 A SPOKESWOMAN FOR ROGERS SAID THE COMPANY IS DISAPPOINTED BY THE DECISION BUT THAT AT THIS TIME IT DOESN'T PLAN TO APPEAL THE RULING SHE SAID ROGERS WILL CONTINUE TO SEEK ACCESS TO THE DATA ON A BASIS WHICH DOESN'T INTERFERE WITH ITS BID THE REALITY IS THAT ROGERS EXECUTIVES HAVE MOST OF THIS INFORMATION ALREADY SAYS ROBERT FURSE CHIEF FINANCIAL OFFICER OF MACLEAN HUNTER NOTING THAT ROGERS HAS OBTAINED EXTENSIVE DATA FILED WITH CANADIAN COMMUNICATIONS REGULATORS WITH RESPECT TO THE CANADIAN CABLETELEVISION ASSETS MR FURSE SAID MACLEAN HUNTER WILL CONTINUE TO OFFER ROGERS ACCESS TO OTHER DATA ON THE SAME BASIS AS OTHER INTERESTED PARTIES 9403010012 940301 PLAYERS INTERNATIONAL INC SHARES LAKE CHARLES LA PLAYERS INTERNATIONAL INC SAID IT AMENDED A SECURITIES AND EXCHANGE COMMISSION FILING AND REMOVED 15 MILLION SHARES THAT THE COMPANY WAS TO HAVE SOLD PLUS AN ADDITIONAL ONE MILLION SHARES THAT INSIDERS WERE TO HAVE SOLD PLAYERS WHICH DEVELOPS AND OPERATES RIVERBOAT CASINOS SAID THE MOVE REFLECTS ITS BELIEF THAT ITS STOCK PRICE DOESN'T REFLECT THE VALUE OF ITS SHARES IN OVERTHECOUNTER TRADING YESTERDAY PLAYERS' SHARES ROSE 875 CENTS OR 37 TO 24625 9403010011 940301 WHO'S NEWS OPTI INC OPTI INC SANTA CLARA CALIF RAY FARNHAM WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF PORTABLE AND DESKTOP COMPUTER PRODUCTS MR FARNHAM 46 YEARS OLD SUCCEEDS OPTI FOUNDER AND FORMER PRESIDENT JERRY CHANG 41 WHO REMAINS CHIEF OPERATING OFFICER OF THE COMPANY MR FARNHAM FORMERLY PRESIDENT OF THE COMMUNICATIONS AND COMPUTING GROUP OF NATIONAL SEMICONDUCTOR CORP ALSO SUCCEEDS COMPANY FOUNDER AND FORMER CHIEF EXECUTIVE KENNY LIU 40 WHO CONTINUES AS CHAIRMAN 9403010010 940301 MARKETING ROYAL CROWN GIRDS TO BATTLE ITS GIANT RIVALS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL FORT LAUDERDALE FLA WHEN JOHN CARSON ARRIVED HERE IN MAY TO TAKE THE REINS AT ROYAL CROWN COLA CO HE DISCOVERED HE HAD AN INEXPERIENCED MARKETING STAFF NO ONE WHO COULD UNDERSTAND A SALES REPORT AND VIRTUALLY NO MONEY FOR ADVERTISING WHAT HE HAD WERE TWO 500POUND GORILLAS TO BATTLE COKE AND PEPSI THIS WEEK ROYAL CROWN PLANS TO UNVEIL A MARKETING CAMPAIGN MR CARSON HOPES WILL BRING THE SOFTDRINK COMPANY BACK FROM THE NEARDEAD THERE IS 68 MILLION FOR ADVERTISING PROMOTIONS AND CAPITAL IMPROVEMENTS IN 1994 AGREEMENTS WITH HARLEYDAVIDSON AND WALMART STORES INC TO GIVE ROYAL CROWN BADLY NEEDED VISIBILITY AND PERHAPS MOST IMPORTANT A STRATEGY THE COMPANY BELIEVES WILL ALLOW IT TO COMPETE WITH COCACOLA CO AND PEPSICO INC RATHER THAN MEET ITS RIVALS HEADON WE HAVE TO WALK BENEATH THE LEGS OF THE GIANTS SAYS ROY SPENCE PRESIDENT OF THE BEVERAGE MAKER'S NEW AD AGENCY GSD&M THE AUSTIN TEXAS UNIT OF GOLD GREENLEES TROTT OF LONDON ONCE AN INNOVATOR IN THE SOFTDRINK BUSINESS IT INTRODUCED THE FIRST DIET COLA ROYAL CROWN FELL ON HARD TIMES IN THE 1980S UNDER THE CONTROL OF MIAMI FINANCIER VICTOR POSNER IT WAS DRAINED OF DOLLARS AND TALENT MR POSNER DECLINES TO ANSWER QUESTIONS ABOUT THE COMPANY IN 1984 ACCORDING TO BEVERAGE DIGEST AN INDUSTRY NEWSLETTER ROYAL CROWN'S AD BUDGET WAS ALMOST 10 MILLION BY 1992 IT FELL TO JUST 31 MILLION WHILE DURING ITS BEST YEARS ROYAL CROWN HAD 5 OF THE SOFTDRINK MARKET ITS SHARE HAS DROPPED TO JUST OVER 2 COKE HAS A 41 MARKET SHARE PEPSI'S IS ABOUT 31 IN APRIL MR POSNER SOLD OUT TO INVESTORS NELSON PELTZ AND PETER MAY WHO HIRED MR CARSON AWAY FROM HIS POST AS PRESIDENT OF RIVAL CADBURY SCHWEPPES PLC'S NORTH AMERICAN OPERATIONS THE NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER IN TURN HAS PERSUADED ABOUT 20 PEOPLE WITH BACKGROUNDS AT COKE AND PEPSI TO JOIN ROYAL CROWN AMONG THE MOST SIGNIFICANT DON LENEHAN A FORMER GROUP BRAND DIRECTOR AT COKE AND A FORMER SENIOR VICE PRESIDENT FOR THE DIET COKE ACCOUNT AT THE LINTAS AD AGENCY BOTH MR LENEHAN NOW SENIOR VICE PRESIDENT FOR MARKETING AND MR SPENCE SAY THEY KNEW A FRONTAL ASSAULT ON COKE AND PEPSI WOULD FAIL SO THEY TRIED TO IDENTIFY THEIR RIVALS' WEAKNESSES MR LENEHAN BELIEVED THE SHEER SIZE OF COKE AND PEPSI MEANT THE TWO OVERLOOKED CERTAIN AUDIENCES COKE WANTS TO BE ALL THINGS TO ALL PEOPLE HE SAYS AND PEPSI AS MUCH AS IT TRIES TO ACT HIP AND COOL CAN'T AFFORD TO BE TOO TARGETED INTERVIEWS WITH 150 CONSUMERS TOLD MR SPENCE THAT PEOPLE HAD NO SIGNIFICANT COMPLAINTS ABOUT ROYAL CROWN'S TASTE RATHER THEY SAID THEY SIMPLY DIDN'T SEE IT ON STORE SHELVES MOREOVER THEY APPEARED TO LIKE THE IDEA OF A COMEBACK A STRATEGY EVOLVED TO TARGET THE FORGOTTEN GENERATION THOSE AGED 18 TO 29 MEMBERS OF THIS GROUP IN ROYAL CROWN'S THINKING ARE MORE WILLING TO EXPERIMENT AREN'T PARTICULARLY BRAND LOYAL AND LOVE TO ROOT FOR THE UNDERDOG DEVELOPING A CAMPAIGN HOWEVER PROVED TROUBLESOME ONE OF THE FIRST SLOGANS DEVELOPED AT GSD&M WAS RC IT'S EASY TO SPELL TEST GROUPS THOUGHT IT WAS FUNNY NOT SO MR LENEHAN IT WAS NOT AS AGGRESSIVE AS WE NEEDED TO BE HE SAYS SIMPLY ANOTHER SLOGAN THAT FELL FLAT WAS RC YOU CAN'T FIND IT FRED ADAMANY PRESIDENT OF ROYAL CROWN'S BOTTLER IN CHICAGO ONE OF THE BEVERAGE'S FEW STRONGHOLDS HELPED KILL THAT IDEA SAYING HE WASN'T ABOUT TO TELL CUSTOMERS THEY COULDN'T FIND HIS PRODUCT WHAT WAS NEEDED SAYS MR LENEHAN WAS A RALLYING CRY FOR THE ENTIRE COMPANY SOMETHING THAT WOULD SAY TO THE CUSTOMER DON'T JUST KEEP DOING THE SAME OLD THING' JUST A MONTH BEFORE A MAJOR MEETING WITH BOTTLERS MR SPENCE AND SEVERAL ASSOCIATES MET FOR A BRAINSTORMING SESSION NOTHING CLICKED UNTIL A CREATIVE DIRECTOR MENTIONED THE WINNER ALMOST IN PASSING SHAKE THINGS UP MR SPENCE LIKED IT IMMEDIATELY TO GET THE MESSAGE ACROSS ROYAL CROWN STARTING SEEKING PROMOTIONS AND SPONSORSHIPS RC EXECUTIVES APPROACHED HARLEYDAVIDSON WHICH HAD STAGED ITS OWN COMEBACK BUT HARLEYDAVIDSON WANTED TO KNOW WHY IT SHOULD TIE IN WITH A COMPANY THAT HAS BEEN SO INVISIBLE MR LENEHAN RECALLS ROYAL CROWN POINTED OUT THAT HARLEYDAVIDSON APPEALED TO AN UNORTHODOX MARKET THAT WASN'T BEHOLDEN TO THE STATUS QUO AN IMAGE RC HAD EMBRACED AND ROYAL CROWN PRESENTED ITSELF AS A NEW MARKETING OUTLET FOR THE MOTORCYCLE MANUFACTURER HARLEYDAVIDSON SIGNED ON AMONG THEIR JOINT PROMOTIONAL CAMPAIGNS WILL BE A SWEEPSTAKES WHOSE TOP PRIZE IS A CUSTOMIZED HARLEY BIKE ANOTHER POTENTIAL WEAKNESS AT COKE AND PEPSI THAT ROYAL CROWN BELIEVES IT CAN EXPLOIT IS DIET COLAS A CATEGORY WHOSE POPULARITY HAS BEEN SAGGING ROYAL CROWN'S DIET RITE COLA IS THE ONLY NATIONAL BRAND WITH NO CALORIES NO CAFFEINE NO SUGAR AND NO SODIUM MR SPENCE AND CREW CAME UP WITH THE SLOGAN WE GOT DIET RITE FOR THE NEXT 12 TO 18 MONTHS ROYAL CROWN WILL CONCENTRATE ON DEVELOPING NEW ACCOUNTS IN CONVENIENCE STORES AND SMALL FOOD STORES AREAS WHERE MR LENEHAN BELIEVES COKE AND PEPSI MAY BE VULNERABLE BECAUSE OF THEIR FOCUS ON BIG GROCERY CHAINS AS WELL AS IMPROVING RELATIONS WITH SUPERMARKETS IT WILL ROLL OUT 10000 VENDING MACHINES THIS YEAR AND ALSO DEVELOP A STRATEGY TO WORK WITH MASS MERCHANDISERS WALMART HAS AGREED TO RUN LIMITED TESTS OF ROYAL CROWN PRODUCTS IN A FEW STORES ROYAL CROWN'S MARKETERS ARE REALISTIC ABOUT HOW MUCH THEY CAN ACCOMPLISH IN THE NEXT FEW MONTHS WE'RE NOT GOING TO BRING ANYBODY TO THEIR KNEES SAYS MR SPENCE WE'RE JUST GOING TO GET UP OFF OF OURS 9403010009 940301 TRACKING TRAVEL BY CARL QUINTANILLA STUNG BY THE RECENT COLD SNAP MANY RESIDENTS OF THE NORTHEAST WANT TO GET OUT OF TOWN FAST TRAVEL AGENCIES IN NEW JERSEY ARE REPORTING RECORD BOOKINGS FOR FEBRUARY TO SUNNIER CLIMES IN PENNSYLVANIA AAA TRAVEL AGENCY PART OF THE AMERICAN AUTOMOBILE ASSOCIATION SAYS BOOKINGS TO WARM SPOTS ARE DOUBLE LAST YEAR'S LEVEL ROYAL CARIBBEAN CRUISE LINE'S WEEKEND SAILINGS HAVE NEARLY SOLD OUT AND HOTELS IN WAIKIKI HAVE BEEN BOOKED THROUGH FEBRUARY'S END FEBRUARY IS TYPICALLY BUSY FOR TRAVEL AGENTS AS PARENTS AND STUDENTS START PLANNING VACATION FOR SPRING BREAK BUT WITH THIS YEAR'S WEATHER CLIENTS CAN'T WAIT EVEN A WEEK TO GET OUT OF THE COLD THEY'VE JUST HAD IT SAYS A TRAVEL NETWORK AGENT IN WEST MILFORD NJ TAKE MICHAEL COSCIA FOR INSTANCE AFTER WEEKS OF PUSHING STRANDED CARS IN KNEEDEEP SNOW THE 32YEAROLD PATROLMAN FOR THE WEST MILFORD POLICE DEPARTMENT CALLED HIS TRAVEL AGENT BOOKED A TRIP TO THE BAHAMAS AND FLED WITH HIS GIRLFRIEND ALL IN JUST 48 HOURS WHILE UNDER THE BAHAMAS'S 85DEGREE SUN MR COSCIA WENT SCUBA DIVING SENT POSTCARDS TO HIS FRIENDS BACK HOME AND LAUGHED LIKE HELL HE SAYS BUT THE LAUGHTER STOPPED WHEN 12 INCHES OF SNOW FELL THE NIGHT HE RETURNED HOME I KNOW IT'S SUPPOSED TO SNOW HERE SAYS THE NEW JERSEY NATIVE BUT THIS IS CRAZY I'M JUST SICK OF IT NEXT WEEK MR COSCIA IS LEAVING TO SPEND THREE DAYS IN MYRTLE BEACH SC CONQUERING JET LAG IS BECOMING MORE THAN A COTTAGE INDUSTRY AS THE GLOBAL MARKETPLACE PUTS MORE DEMANDS ON THE BUSINESS TRAVELER CIRCADIAN TRAVEL TECHNOLOGIES OF BETHESDA MD MARKETS A COMPUTER SOFTWARE PACKAGE THAT CUSTOMIZES AND PRINTS SLEEP SCHEDULES FOR OVERSEAS FLIERS AND DETERMINES WHEN THEY SHOULD BE EXPOSED TO BRIGHT LIGHT FOR 379 THE COMPANY ALSO SELLS A PLASTIC BATTERYPOWERED VISOR THAT SHINES SIMULATED SUNLIGHT INTO THE EYES FOOLING THE BODY INTO MAINTAINING ITS INTERNAL CLOCK MANAGEMENT CONSULTING INTERNATIONAL OF CORONA DEL MAR CALIF HAS A SIMILAR PROGRAM THE TUDOR HOTEL IN NEW YORK CITY RECENTLY OUTFITTED SIX CIRCADIAN ROOMS WITH CLOCKS AND SPECIAL WINDOW SHADES THAT HELP TRAVELERS STAY ON THEIR HOME TIME ZONES IF THEY STAY IN THE ROOM AND THE ARGONNE NATIONAL LABORATORIES IN ARGONNE ILL HAS DEVELOPED THE ANTIJETLAG DIET WHICH INVOLVES EATING CERTAIN FOODS AND THEN FASTING BEFORE AND DURING LONG TRIPS WHILE SOME FLIERS EXPERIENCE ONLY MINOR FATIGUE FROM JET LAG OTHERS CAN SUFFER STOMACH UPSETS HEADACHES OR DEPRESSION IT'S MISERY FOR SOME PEOPLE SAYS MARTIN MOOREEDE A PROFESSOR OF PHYSIOLOGY AT HARVARD MEDICAL SCHOOL AND DIRECTOR OF THE INSTITUTE OF CIRCADIAN TECHNOLOGY A NONPROFIT RESEARCH GROUP JET LAG OCCURS WHEN THE BODY'S BIOLOGICAL CLOCK IS DISRUPTED BY CHANGES IN THE DAYLIGHT CYCLE DR MOOREEDE SAYS TWOTHIRDS OF THOSE WHO FLY THROUGH TIME ZONES HAVE SIGNIFICANT JET LAG OTHERS PUT THE FIGURE AT 75 BOB WILNER A HUMAN RESOURCES DIRECTOR WHO GOES TO BEIJING TWICE A MONTH ALTERS HIS DIET AND TAKES SUPPLEMENTAL VITAMINS TO ALLEVIATE HIS CHRONIC WASHEDOUT FEELING FOR THE PAST YEAR HE SAYS HE HAS USED THE CIRCADIAN TRAVEL TECHNOLOGIES LIGHT VISOR WITH GOOD RESULTS STILL SALES OF THE VISOR HAVE BEEN TEPID AND THE TUDOR HOTEL SAYS ITS CIRCADIAN SUITES ARE ONLY 10 OCCUPIED MARKETERS INSIST THAT SALES WILL IMPROVE WITH TIME BUT MR WILNER ADMITS PEOPLE STARE WHEN HE WEARS THE VISOR ON A PLANE I TRY TO HOLD UP A NEWSPAPER BECAUSE I'M TIRED OF EXPLAINING IT HE SAYS NOW THAT THE 17TH OLYMPIC WINTER GAMES ARE OVER LILLEHAMMER NORWAY IS RECOVERING NICELY THANKS PARTLY TO THE MONEY 300000 PEOPLE MAY HAVE UNWITTINGLY ADDED TO ITS COFFERS NORWAY'S VALUEADDED TAX OR VAT SIMILAR TO A RETAIL SALES TAX ACCOUNTS FOR 18 OF THE PRICE OF MOST GOODS INCLUDING SOUVENIRS AND MEMORABILIA BUT WHILE TOURIST PURCHASES OF AT LEAST 300 NORWEGIAN KRONER OR ABOUT 40 ARE ELIGIBLE FOR A VAT REFUND MANY UNWITTINGLY FORFEIT IT WHEN THEY LEAVE THE COUNTRY EUROPE TAXFREE SHOPPING A UNIT OF CHICAGOBASED ADVANCE ROSS IS ONE OF THE LARGEST VATREFUND SERVICES IN EUROPE WITH A NETWORK OF 70000 MERCHANTS AND RETAILERS CHECK REFUNDS ARE AVAILABLE THROUGH PARTICIPATING MERCHANTS AND ARE CASHED MINUS A 20 SERVICE CHARGE AT THE EUROPE TAXFREE SHOPPING BOOTHS AT AIRPORTS TOURISTS ARE EXPECTED TO SPEND NEARLY 21 BILLION IN NORWAY THIS YEAR AND FORFEITED VAT REFUNDS THROUGHOUT EUROPE ARE EXPECTED TO BE 30 MILLION LAST YEAR ETS REFUNDED NEARLY 5 MILLION IN NORWEGIAN VATS ALTHOUGH NEITHER THE COMPANY NOR OLYMPIC OFFICIALS ARE SURE HOW MUCH TOURISTS SPENT AT THIS YEAR'S WINTER GAMES ETS SAYS THE AVERAGE VAT REFUND IS AROUND 25 TOURISTS CAN ALSO COLLECT VAT REFUNDS ON THEIR OWN BY SENDING SALES RECEIPTS TO FOREIGN GOVERNMENTS BUT CHECKS TAKE MONTHS TO PROCESS AND ARE USUALLY WRITTEN IN FOREIGN CURRENCY MIAMI INTERNATIONAL AIRPORT SAYS IT WILL SURPASS NEW YORK'S KENNEDY AIRPORT AS AMERICA'S LEADING INTERNATIONAL AIRPORT BY 1995 MIAMI WHICH RANKED SECOND LAST YEAR WITH 124 MILLION OVERSEAS PASSENGERS IS GROWING AT ABOUT 7 ANNUALLY KENNEDY WHICH HANDLED 15 MILLION INTERNATIONAL PASSENGERS LAST YEAR IS GROWING AT 2 TO 4 ANNUALLY HOW DARE THEY SAID A KENNEDY SPOKESWOMAN OF MIAMI'S CLAIMS ONE OF THE PROPOSED USES FOR DENVER'S STAPLETON AIRPORT WHICH IS SLATED TO CLOSE ON MARCH 8 A GIANT TOURNAMENT TRACK FOR BICYCLERACING AND ROLLERBLADING 9403010008 940301 ADVERTISING NEW MAGAZINES CATER TO PEOPLE WITH HIV BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL SOON THERE WILL BE FOUR NATIONAL MAGAZINES FOR PEOPLE WHO ARE HIV POSITIVE THE NEWEST ENTRANTS IN THE FIELD PLUS VOICE AND POZ ARE GLOSSY PUBLICATIONS FOR MEN AND WOMEN THAT WILL TRY TO RIVAL THE CIRCULATIONS OF THE MOST SUCCESSFUL GAY MAGAZINES IN THE COUNTRY THEY ARE JOINING THE VERY FRINGE SARDONIC DPN WHICH STANDS FOR DISEASED PARIAH NEWS AND ART AND UNDERSTANDING A LITERARY MAGAZINE THESE MAGAZINES ARRIVE AT A TIME WHEN GAY PUBLISHING IS FLOURISHING GENERALLY BRUCE FRYER DIRECTOR OF MAGAZINES FOR THE WALDENBOOKS CHAIN SAYS THAT IN 1993 GAY PUBLICATIONS SHOWED THE LARGEST INCREASE IN OUR STORES OF ANY CATEGORY GROWING 85 IN UNIT SALES IN RECENT YEARS OUT AND THE ADVOCATE ARE SAID TO HAVE REACHED CIRCULATIONS WELL OVER 100000 PLUS VOICE WHICH CALLS ITSELF THE MAGAZINE ABOUT LIFE AND HIV PUBLISHED ITS FIRST ISSUE LAST MONTH AND SAYS IT DISTRIBUTED 50000 FREE COPIES IN 31 STATES ARRIVING ON NEWSTANDS TODAY WILL BE POZ WHICH RICHARD PEREZFERIA THE EDITOR SAYS IS A CROSS BETWEEN VANITY FAIR AND THE NEW ENGLAND JOURNAL OF MEDICINE WHILE EXISTING GAY MAGAZINES REGULARLY CARRY ARTICLES ABOUT AIDS THE PUBLISHERS OF BOTH PLUS VOICE AND POZ SAY THEY BELIEVE THERE IS MORE TO SAY THE FIRST ISSUE OF PLUS VOICE CARRIED AN INTERVIEW WITH KRISTINE GEBBIE PRESIDENT CLINTON'S NEW AIDS CZAR NUTRITION TIPS AND AN ARTICLE ON HOW TO BECOME AN AIDS VOLUNTEER POZ'S PREMIERE ISSUE INCLUDES A PROFILE OF BARRY GOLDWATER'S GRANDSON TY ROSS WHO IS HIV POSITIVE PLUS A SECTION ON AIDS AND THE COURTS AND MOVIE AND TELEVISION REVIEWS BOTH MAGAZINES PLAN EXTENSIVE COVERAGE OF NEW RESEARCH AND DRUG TRIALS THOUGH THEY MAY SEEM MORBID THE NEW MAGAZINES HAVE FOUND A SURPRISINGLY GOOD RESPONSE FROM ADVERTISERS SOME SUCH AS INSURANCE AND MEDICALSUPPLY COMPANIES ARE EAGER TO GET THEIR MESSAGE TO THIS GROUP WHILE OTHER COMPANIES SAY THEY'RE BUYING ADS TO SHOW SUPPORT FOR A WORTHY CAUSE STEVE SIMON HAS ADVERTISED IN BOTH POZ AND PLUS VOICE AND HAS DONATED MONEY TO DPN I'VE SPENT MILLIONS ADVERTISING IN GAY PUBLICATIONS IN THE PAST FIVE OR SO YEARS AND I THINK THESE PUBLICATIONS ARE LONG OVERDUE HE SAYS MR SIMON IS PRESIDENT OF AMERICAN LIFE RESOURCES GROUP INC OF MIAMI BEACH FLA A COMPANY THAT BUYS OUT THE LIFE INSURANCE POLICIES OF TERMINALLY ILL PEOPLE SO THEY CAN RAISE MONEY WHILE ALIVE POZ IS VERY EFFICIENT FOR US SAYS ROBERT YASSKY DIRECTOR OF MARKETING FOR A NUTRITIONAL SUPPLEMENT MADE BY MEDAGENICS INC OF SAN CLEMENTE CALIF OUR SUPPLEMENT IS DESIGNED FOR PEOPLE WITH HIV OR CANCER AND THOUGH WE HAVE A SALES FORCE IT IS VERY SMALL SEAN STRUB THE PUBLISHER OF POZ HAS DEVELOPED OVER THE YEARS WHAT SEEMS TO BE A VERY GOOD LIST OF PEOPLE AFFECTED BY HIV AND THIS ALLOWS US TO REACH THEM DIRECTLY MANY BLUECHIP ADVERTISERS HOWEVER HAVE DECLINED TO BUY SPACE IN THESE PUBLICATIONS MAGAZINES ARE OFTEN CREATED BY MEMBERS OF A GROUP WHO FEEL PASSIONATELY THAT THEIR SPECIAL INTERESTS AREN'T OTHERWISE SERVED AND THE FOUNDERS OF THESE PUBLICATIONS ARE NO EXCEPTION BRETT GRODECK THE 27YEAROLD WHO STARTED PLUS VOICE IN CHICAGO DISCOVERED SIX YEARS AGO THAT HE CARRIED HIV THE VIRUS THAT CAUSES AIDS AND MR STRUB THE FOUNDER AND PUBLISHER OF POZ IS A NEW YORKBASED ENTREPRENEUR AND AIDS ACTIVIST WHO CAME DOWN WITH FULLBLOWN AIDS SEVERAL YEARS AGO I'M FUNDING THIS MYSELF AND HAVE PROVIDED FOR POZ TO GO ON AFTER I'M GONE SAYS MR STRUB THIS IS THE MOST IMPORTANT THING IN MY LIFE THE CENTERS FOR DISEASE CONTROL AND PREVENTION ESTIMATES THAT ABOUT ONE MILLION AMERICANS ARE NOW INFECTED WITH HIV BUT DON'T YET HAVE AIDS BUT MR STRUB SEES A BROADER AUDIENCE WE WANT TO REACH NOT JUST PEOPLE WHO ARE HIV POSITIVE BUT EVERYBODY ELSE WHO IS AFFECTED BY THIS INCLUDING FRIENDS FAMILY AND MEDICAL CARETAKERS THE FIRST ISSUE OF POZ WILL BE MAILED FREE TO A LIST OF 70000 AIDSINVOLVED HOUSEHOLDS A LIST COMPILED BY MR STRUB THAT INCLUDES REGULAR CONTRIBUTORS TO AIDS CAUSES A SIXISSUE SUBSCRIPTION WILL BE OFFERED FOR 1995 BUT THOSE WHO IDENTIFY THEMSELVES AS HIV POSITIVE CAN RECEIVE THE MAGAZINE FREE PLUS VOICE ASKS FOR A 30 DONATION FROM SUBSCRIBERS BUT ALSO GIVES THE MAGAZINE FREE TO THOSE INFECTED WHILE HE SAYS HE IS VERY SATISFIED WITH THE FIRST RESPONSE MR STRUB HASN'T BEEN ABLE TO SIGN UP AS MANY LIFESTYLE AND CLOTHING ADVERTISERS SUCH AS BENETTON AND KENNETH COLE AS HE HAD HOPED I'VE TRIED TO TELL THEM THAT WHEN SOMEONE FINDS OUT THEY ARE POSITIVE THEY'LL GO OUT AND SPEND MONEY IF THEY'RE AFFLUENT AT ALL SAYS MR STRUB THEY'LL FLY TO PARIS OR BUY THAT VERSACE SUIT THEY ALWAYS WANTED MR STRUB SAYS HE'LL KEEP AFTER THOSE RELUCTANT COMPANIES AND HE BELIEVES THAT THE NEWSINESS AND PROFESSIONALISM OF POZ WILL EVENTUALLY CONVERT THEM NANCY KERRIGAN HAD TO SETTLE FOR SILVER IN LILLEHAMMER BUT CAN SHE STILL MINE GOLD ON MADISON AVENUE APPARENTLY SO REVLON A UNIT OF MACANDREWS & FORBES HOLDINGS SAID IT HAS SIGNED AN EXCLUSIVE MULTIYEAR AGREEMENT WITH THE 24YEAROLD FIGURE SKATER TO APPEAR IN TELEVISION AND PRINT ADS DETAILS ARE STILL UNDER DISCUSSION A REVLON SPOKESMAN SAID INCLUDING WHICH REVLON PRODUCTS MS KERRIGAN WILL ENDORSE NEWS OF THE DEAL FOLLOWS AN ESTIMATED 6 MILLION MULTIYEAR AGREEMENT BETWEEN MS KERRIGAN AND WALT DISNEY CO COVERING PERSONAL AND COMMERCIAL APPEARANCES A MADEFORTV MOVIE TO BE AIRED ON THE ABC NETWORK AND A CHILDREN'S BOOK TO BE PUBLISHED BY DISNEY'S HYPERION BOOKS SPORTS MARKETING EXPERTS SAID THEY BELIEVE IT IS ONE OF THE SINGLE LARGEST DEALS BETWEEN A MARKETER AND AN ATHLETE IN EITHER PROFESSIONAL OR OLYMPIC SPORTS EXPERTS IN SPORTS MARKETING SAY THE COLOR OF MS KERRIGAN'S MEDAL IS INSIGNIFICANT MY FEELING WAS THAT AFTER SHE WON THE TECHNICALS IT REALLY DIDN'T MATTER WHAT SHE DID SAID DAVID BURNS FOUNDER OF BURNS SPORTS CELEBRITY NETWORK CHICAGO BUT SOME OF THEM SAID THEY WERE DISMAYED TO SEE MS KERRIGAN BEHAVING LESS THAN GRACIOUSLY OVER THE WEEKEND SHE MADE A TART REMARK ON CAMERA ABOUT HER RIVAL OKSANA BAIUL BEFORE THE MEDAL CEREMONY OFFERED CRITICAL REMARKS ABOUT MS BAIUL'S SKATING IN PUBLISHED NEWS REPORTS AND SKIPPED THE CLOSING CEREMONIES I WOULD PREFER THAT SHE HADN'T BROUGHT UP THE FACT THAT SHE DESERVED TO GET THE GOLD MR BURNS SAID SHE SHOULD BE ADVISED TO JUST SHUT UP ABOUT THAT OTHERS DISAGREED I THINK THE PUBLIC HAS ALREADY FORGIVEN HER FOR THOSE THINGS SAID ALLEN FURST A PARTNER AT D&F GROUP A WASHINGTON DC SPONSORSHIP AGENCY THEY KNOW WHAT SHE'S BEEN THROUGH OVER THE LAST MONTH AND FOR THE MOST PART THEY'LL REMEMBER HER FOR WHAT SHE ACHIEVED ON THE ICE MS KERRIGAN AND HER AGENT COULDN'T BE REACHED COCACOLA CHIAT/DAY IS EXPECTED TO UNVEIL ADVERTISING TODAY FOR A NEW PRODUCT FROM COCACOLA CO THE NEW ADS ARE EXPECTED TO BE FOR A JUICEBASED NEW AGETYPE BEVERAGE SEPARATELY KNOWLEDGABLE EXECUTIVES SAID COKE HAD AWARDED AN ESTIMATED 30 MILLION EUROPEAN ASSIGNMENT FOR FANTA SOFT DRINKS TO INTERPUBLIC'S LOWE GROUP A SPOKESMAN FOR COKE DECLINED COMMENT TOBACCO AD BAN THE BALTIMORE CITY COUNCIL VOTED TO BAN SEVERAL FORMS OF OUTDOOR TOBACCO ADVERTISING INCLUDING BILLBOARDS SIDES OF BUILDINGS AND FREESTANDING BOARDS ACCORDING TO CITY WIDE LIQUOR COALITION A BALTIMORE COMMUNITY GROUP EXCEPTED ARE OUTDOOR ADS ON INTERSTATE HIGHWAYS AND AT CERTAIN SPORTS VENUES THE GROUP SAID A SIMILAR BAN ON ALCOHOL ADVERTISING WENT INTO EFFECT IN DECEMBER BUT IS UNDER APPEAL BY LIQUOR INDUSTRY INTERESTS 9403010007 940301 BANCTEC COMPLETES ACQUISITION DALLAS BANCTEC INC SAID IT COMPLETED THE 162 MILLION ACQUISITION OF TERMINAL DATA CORP BANCTEC SAID THE TRANSACTION WAS APPROVED BY TERMINAL DATA HOLDERS AT A MEETING FRIDAY HOLDERS OF TERMINAL DATA COMMON SHARES WILL BE ENTITLED TO RECEIVE 3375 A SHARE TERMINAL DATA BASED IN MOORPARK CALIF SUPPLIES DOCUMENTIMAGE CAPTURE PRODUCTS AND SERVICES 9403010006 940301 LETTERS TO THE EDITOR PINEAPPLE' PESTICIDE POSES REAL RISKS OHIO GOV GEORGE VOINOVICH COMPLAINS ON YOUR JAN 31 EDITORIAL PAGE THAT THE ENVIRONMENTAL PROTECTION AGENCY FORCES DRINKING WATER SYSTEMS ALL OVER AMERICA TO TEST FOR A PESTICIDE THAT IS USED ONLY IN HAWAII TO GROW PINEAPPLES AND ON YOUR FEB 24 EDITORIAL PAGE REP JOHN MICA R FLA USED THE EXAMPLE OF THE PINEAPPLE PESTICIDE TEST TO PROTEST COMPLIANCE COSTS RESULTING FROM EPA REGULATIONS EVERYONE AGREES THAT THE SAFE DRINKING WATER ACT SHOULD REGULATE ONLY THOSE CONTAMINANTS THAT POSE REAL HEALTH RISKS UNFORTUNATELY THE INFAMOUS PINEAPPLE PESTICIDE HAPPENS TO BE ONE OF THEM TRUE IN RECENT YEARS DBCP WAS USED ONLY IN HAWAII IT HAS SINCE BEEN BANNED ENTIRELY BUT UNTIL 1979 THIS CHEMICAL WAS USED THROUGHOUT THE US ALMOST 33 MILLION POUNDS A YEAR WERE APPLIED TO CROPS SUCH AS SOYBEANS COTTON AND PEANUTS DBCP IS EXTREMELY PERSISTENT AND STILL SHOWS UP AT HARMFUL LEVELS IN DRINKING WATER ACROSS THE COUNTRY INCLUDING IN OHIO NINE OUT OF 10 AMERICANS WHO DRINK PUBLIC TAP WATER PAY AN AVERAGE MONTHLY CHARGE OF 2 OR LESS FOR ALL SAFE DRINKING WATER ACT STANDARDS MOST BELIEVE IT'S A GOOD INVESTMENT IN FACT A RECENT WATER UTILITY TRADE ASSOCIATION POLL SHOWS THAT 82 OF AMERICANS ARE WILLING TO PAY MORE IF THAT IS WHAT IT TAKES TO MEET FEDERAL SAFETY STANDARDS IN SEPTEMBER THE CLINTON ADMINISTRATION PROPOSED TO REFORM THE ACT TO MINIMIZE THE COST TO COMMUNITIES ESPECIALLY THOSE SERVED BY SMALL SYSTEMS THE EPA IS ALSO INCREASING ITS WORK WITH THE STATES TO WAIVE MONITORING REQUIREMENTS WHERE THEY DO NOT MAKE SENSE 9403010005 940301 LETTERS TO THE EDITOR JUSTICE AND MORALITY CANNOT BE SEPARATED IN HER FEB 1 LETTER ANGELIQUE LITTLE SAID THE THINGS CATHARINE MACKINNON AND MYSELF OBJECT TO PORNOGRAPHY HATE SPEECH SEXUAL HARASSMENT AND RAPE ARE ODIOUS NOT BECAUSE THEY ARE IMMORAL BUT BECAUSE THEY DEGRADE HUMILIATE OPPRESS AND SILENCE WOMEN MORALITY HAS ABSOLUTELY NO PLACE IN THE FEMINIST SCHOOL OF THOUGHT IT IS COMPLETELY REMOVED FROM THE SUBJECT MATTER BECAUSE FEMINISM SPROUTS NOT FROM IMMORALITY BUT FROM INJUSTICE MY PROBLEM IS IN UNDERSTANDING WHAT MS LITTLE COULD POSSIBLY UNDERSTAND BY IMMORALITY IF DEGRADING HUMILIATING OPPRESSING AND SILENCING PEOPLE ARE NOT THINGS THAT MAKE AN ACTION IMMORAL I HAVE NO IDEA WHAT WOULD THE CORE OF IMMORALITY IS ALWAYS SOME HARM TO PEOPLE THAT IS NOT JUSTIFIED BY SOME HIGHER GOOD OR DUTY MS LITTLE SEEMS TO THINK THAT THERE IS A CONFLICT BETWEEN MORALITY AND JUSTICE OR AT LEAST THAT THEY ARE ENTIRELY DIFFERENT SPHERES BUT SURELY ONE OF THE THINGS THAT CAN MAKE AN ACTION IMMORAL UNETHICAL IS THAT IT IS UNJUST IN FACT FOR MANY EG KURT BAIER IN THE MORAL POINT OF VIEW LAWRENCE KOHLBERG IN HIS STAGE THEORY OF MORAL DEVELOPMENT WILLIAM FRANKENA IN HIS CLASSIC TEXT ETHICS JUSTICE IN THE SENSE OF RESPECTING PEOPLE'S RIGHTS OR GIVING THEM THEIR DUE IS OR COMES CLOSE TO BEING THE ESSENCE OF MORALITY MY AIM IS NOT TO CRITICIZE FEMINISM BUT TO POINT OUT THAT IF FEMINISM IS TO BE SOMETHING OTHER THAN MERE POWER POLITICS OR CLASS CONFLICT IF IN FACT IT CLAIMS A BASIS IN JUSTICE THEN TO THAT EXTENT IT IS ATTEMPTING TO DICTATE MORALITY TO MEN OR WOMEN CONTRARY TO WHAT MS LITTLE SUGGESTS 9403010004 940301 LAW LEGAL BEAT ISSUES OF DISCLOSURE TOP SURVEY OF SUITS AGAINST FIRMS' OFFICERS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ALLEGATIONS OF IMPROPER FINANCIAL DISCLOSURE HAVE EMERGED AS THE SINGLE BIGGEST SOURCE OF LAWSUITS AGAINST CORPORATE DIRECTORS AND OFFICERS SUPPLANTING COMPLAINTS ABOUT MERGERS AND ACQUISITIONS RESULTS OF AN ANNUAL SURVEY BY THE CONSULTING FIRM WYATT CO ILLUSTRATE SHAREHOLDERS' INCREASING EFFORTS TO HOLD COMPANIES FINANCIALLY RESPONSIBLE FOR STATEMENTS THEY MAKE IN EARNINGS REPORTS PRESS RELEASES AND PROSPECTUSES DISCLOSURE WAS THE KEY ISSUE IN ABOUT 17 OF LAWSUITS AGAINST CORPORATE OFFICIALS DURING THE NINEYEAR PERIOD ENDING IN 1992 THE SURVEY FOUND THE NUMBER OF DISCLOSURE SUITS IN THIS YEAR'S SURVEY FAR SURPASSED THE NUMBER OF CASES COMPLAINING ABOUT CORPORATE TAKEOVERS THE CATEGORY THAT HAD PREVIOUSLY TOPPED THE LIST OF LEGAL PERILS FACING CORPORATE OFFICIALS THE SURVEY DISCOVERED ABOUT 10 OF CLAIMS STEMMED FROM MERGERS AND ACQUISITIONS A DROP FROM 17 IN LAST YEAR'S SURVEY WHICH COVERED NINE YEARS ENDING IN 1991 OF THE CASES REPORTED IN THE SURVEY THAT HAVE BEEN RESOLVED 59 WERE SETTLED OUT OF COURT AND 22 WENT TO TRIAL ABOUT 19 OF THE COMPLAINTS WERE DROPPED IN ALL PLAINTIFFS RECOVERED MONEY IN ABOUT HALF THE CASES THE OVERALL AVERAGE PAYOUT FOR SUCCESSFUL CLAIMS AGAINST CORPORATE OFFICIALS WAS 33 MILLION THE AVERAGE PAYOUT IN AN IMPROPERDISCLOSURE SUIT WAS HIGHER AVERAGING 82 MILLION SUCH CLAIMS ARE USUALLY PAID OUT OF A COMPANY'S DIRECTORS' AND OFFICERS' LIABILITY INSURANCE DISCLOSURE ISSUES APPEAR TO BE ESPECIALLY DANGEROUS TRIPWIRES FOR COMPANIES MAKING PUBLIC STOCK OFFERINGS IN THE PAST NINE YEARS PUBLIC OFFERINGS TRIGGERED 5 OF ALL LAWSUITS AGAINST DIRECTORS AND OFFICERS COMPARED TO ABOUT 35 IN LAST YEAR'S SURVEY INVESTORS INCREASINGLY ARE SAYING WAIT A MINUTE SOMETHING THAT YOU SAID IN THE PROSPECTUS WAS INCONSISTENT WITH WHAT IT SHOULD HAVE BEEN' SAYS PHILLIP NORTON A WYATT CONSULTANT IN CHICAGO WHO WROTE THE SURVEY REPORT DISCLOSURE SUITS HAVE BECOME SO COMMON THAT IT IS PROBABLY IMPOSSIBLE FOR BIG COMPANIES TO WARD THEM OFF ENTIRELY LAWYERS SAY THE SUITS ARE OFTEN FILED BY SHAREHOLDERS WHO HAVE BOUGHT STOCK AFTER READING A COMPANY'S ROSY ASSESSMENT OF ITS PROSPECTS ONLY TO SEE SHARES PLUNGE WHEN THE COMPANY RELEASES MORE DISAPPOINTING EARNINGS LATER ON IN ADDITION SOME COURTS ARE BEGINNING TO PROTECT COMPANIES FROM DISCLOSURE SUITS IF THE PROSPECTUS FOR THE DEAL AT ISSUE INCLUDED PLENTY OF WARNINGS ABOUT POTENTIAL PITFALLS THERE WAS A PERIOD WHEN THE COURTS BEGAN TO REGARD SUCH WARNINGS AS BOILERPLATE THEY'RE NOW GIVING THEM A LOT MORE CREDENCE PROF BROMBERG SAID WYATT SAMPLED RETURNS FROM 1203 SURVEY PARTICIPANTS MOSTLY PUBLICLY TRADED COMPANIES THE SURVEYED COMPANIES HAD MEDIAN ASSETS OF ABOUT 600 MILLION LEGISLATION TO ENABLE LAWYERS REGISTERED IN ONE EUROPEAN UNION COUNTRY TO SET UP PRACTICES IN OTHER MEMBER STATES LOOKS SET TO EMERGE FROM THE EU COMMISSION THE COMMISSION IS CONSIDERING A DRAFT PROPOSAL SUBMITTED LAST YEAR BY THE COUNCIL OF THE BARS AND LAW SOCIETIES OF THE EU A COMMISSION OFFICIAL SAID THE PROPOSAL HAS BEEN GENERALLY WELL RECEIVED IN BRUSSELS THE PLAN HE NOTED EMERGED AS A COMPROMISE FROM EU BAR GROUPS AFTER SOME 15 YEARS OF OFTEN TORTUOUS DEBATE SO IT WOULD BE COUNTERPRODUCTIVE TO TINKER WITH IT TOO MUCH HE EXPECTS THE COMMISSION'S FINAL PROPOSAL TO BE PRESENTED TO EU MEMBER STATES IN THE NEXT FEW MONTHS UNDER THE DRAFT PROPOSAL A LAWYER REGISTERED IN ONE COUNTRY COULD PRACTICE IN ANOTHER MEMBER STATE OR HOST NATION UNDER HIS OR HER HOME COUNTRY TITLE SO FOR EXAMPLE A BRITISH SOLICITOR COULD ESTABLISH A PRACTICE IN FRANCE AS A SOLICITOR RATHER THAN AS AN AVOCAT AND WOULD HAVE THE RIGHT TO ADVISE ON FRENCH LAW IF COMPETENT TO DO SO THIS IS IMPORTANT SAYS THE NEW EU BAR GROUP HEAD DANISH LAWYER NIELS FISCHTHOMSEN BECAUSE VERY OFTEN A LAWYER WOULD BE CALLED UPON TO ADVISE PARTLY ON HOMECOUNTRY LAW AND PARTLY ON HOSTCOUNTRY LAW THE BAR GROUP'S PLAN ALSO OUTLINES A PROCEDURE TO ALLOW LAWYERS TO BECOME FULLY INTEGRATED INTO THE HOST COUNTRY'S BAR A LAWYER LICENSED IN ONE EU COUNTRY WOULD HAVE TO PASS AN EXAM IN THE HOST COUNTRY TO DEMONSTRATE BASIC KNOWLEDGE OF THE LOCAL LAW AND LANGUAGE BUT THE TEST WOULD BE LESS RIGOROUS THAN THAT GIVEN TO NEW LAWYERS WHO WERE NOT ALREADY A BAR MEMBER IN THAT COUNTRY SEXUAL ABUSE ALLEGATIONS WERE DROPPED AGAINST ROMAN CATHOLIC CARDINAL JOSEPH BERNARDIN OF CHICAGO AFTER THE PLAINTIFF SAID HIS MEMORIES OF THE SITUATION WERE UNRELIABLE US DISTRICT JUDGE S ARTHUR SPIEGEL IN CINCINNATI DISMISSED THE 10 MILLION LAWSUIT BROUGHT BY A 34YEAROLD MAN STEVEN J COOK WHO SAID HE NOW REALIZES THAT HIS RECOLLECTIONS OF ALLEGED INCIDENTS OCCURRED DURING AND AFTER HYPNOSIS ACCORDING TO THE ARCHDIOCESE OF CHICAGO EFFORTS TO REACH ATTORNEYS IN THE CASE AND THE COURT WERE UNSUCCESSFUL THE ARCHDIOCESE SAID THE WITHDRAWAL OF CHARGES ISN'T PART OF ANY COMPROMISE OR SETTLEMENT IT ALSO SAID CARDINAL BERNARDIN WAS DISMISSED AS A PARTY TO MR COOK'S ALLEGATIONS OF SEXUAL ABUSE AGAINST A CINCINNATI PRIEST THE PLAINTIFF INITIALLY SAID THE ALLEGED INCIDENTS OCCURRED IN THE 1970S CHARLES GOLDSMITH AND RICHARD GIBSON CONTRIBUTED TO THIS ARTICLE 9403010002 940301 SMALL STOCK FOCUS STOCKS CLIMB BOOSTED BY FIRM BONDS AND STRONG COMMUNICATIONS ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRONG COMMUNICATIONS STOCKS AND FIRM BONDS COMBINED TO PUSH SMALLCOMPANY STOCKS HIGHER ALTHOUGH NEW YORK STOCK EXCHANGE PRICES LOST GROUND TRADERS SAID YESTERDAY'S BOUNCE BY SMALLER STOCKS WAS PARTLY TECHNICAL AS THE GROUP HAS UNDERPERFORMED IN COMPARISON WITH LARGE CYCLICAL ISSUES SINCE THE YEAR BEGAN OBSERVERS SAID STRONG OVERSEAS MARKETS PAVED THE WAY FOR ADVANCES THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS JUMPED 253 OR 096 TO 26553 ITS SESSION HIGH THE NASDAQ COMPOSITE INDEX CLIMBED 872 OR 111 TO 79250 ADVANCING NASDAQ ISSUES WHIPPED DECLINERS 2054 TO 1132 NASDAQ NATIONAL MARKET VOLUME WAS A SLIM 243955212 SHARES AND OVERALL VOLUME WAS AT 287547000 ON FRIDAY NATIONAL MARKET TURNOVER REGISTERED 244140900 SHARES WITH TOTAL VOLUME AT 285648000 MEANWHILE PHILIP MORRIS COS DEPRESSED BLUE CHIPS HELPING THE DOW JONES INDUSTRIAL AVERAGE SLIDE 676 POINTS OVERSEAS FOREIGN MARKETS SHRUGGED OFF NEWS THAT US FIGHTER JETS SHOT DOWN FOUR BOSNIAN SERB AIRCRAFT AFTER SERB PILOTS WERE SEEN DROPPING BOMBS OVER CENTRAL BOSNIA SHARES ROSE IN TOKYO HONG KONG LONDON AND FRANKFURT YESTERDAY COMMUNICATIONS STOCKS TOOK THE SPOTLIGHT WHAT WE SAW WAS A BOUNCEBACK BY THE INFORMATIONHIGHWAY STOCKS' BECAUSE OF THE MCINEXTEL NEWS SAID TIM GRAZIOSO VICE PRESIDENT AND MANAGER OF OVERTHECOUNTER TRADING AT CANTOR FITZGERALD SECURITIES SOME SPECIALIZED MOBILERADIO STOCKS WERE BOOSTED BY NEWS THAT MCI COMMUNICATIONS UP 7/8 TO 27 3/8 WILL INVEST 13 BILLION IN NEXTEL COMMUNICATIONS WHICH SURGED 5 5/8 TO 44 1/4 CENCALL COMMUNICATIONS OF DENVER ROSE 3 7/8 TO 28 1/2 AND DIAL PAGE OF GREENVILLE SC JUMPED 5 1/4 TO 54 1/2 AMONG LOSERS AMERICAN HEALTHCORP PLUNGED 6 1/4 TO 15 1/4 ON A POOR SECONDQUARTER EARNINGS OUTLOOK THE NASHVILLE TENN PROVIDER OF DIABETESTREATMENT SERVICES SAID IT EXPECTS PROFIT OF 17 CENTS A SHARE FOR THE PERIOD BELOW 19 CENTS A YEAR AGO AND ANALYSTS' ESTIMATES OF 22 CENTS TOPS APPLIANCE CITY TUMBLED 3 TO 10 1/4 THE EDISON NJ OPERATOR OF RETAIL MEGASTORES FOR APPLIANCES AND CONSUMER ELECTRONICS POSTED FOURTHQUARTER EARNINGS OF 34 CENTS A SHARE COMPARED WITH PROFORMA EARNINGS OF 55 CENTS A YEAR EARLIER LOTTERY ENTERPRISES DROPPED 1 TO 11 THE SAN DIEGO LOTTERYTICKET VENDING TERMINAL MAKER SAID ITS FOURTHQUARTER EARNINGS FELL TO 12 CENTS A SHARE ON MORE SHARES FROM 28 CENTS A YEAR EARLIER DISAPPOINTING EARNINGS LOPPED 4 3/4 FROM THE STOCK OF ROBERDS SENDING IT TO 8 1/2 THE WEST CARROLLTON OHIO OPERATOR OF HOMEFURNISHING STORES SAID ITS FOURTHQUARTER PROFIT FELL TO 25 CENTS A SHARE ON A PROFORMA BASIS FROM 40 CENTS A YEAR EARLIER IN ADDITION RAYMOND JAMES & ASSOCIATES DOWNGRADED ROBERDS TO HOLD FROM BUY RICKY HARRINGTON A SENIOR VICE PRESIDENT AND ANALYST AT INTERSTATE/JOHNSON LANE SAID PART OF THE LATEBUYING SPREE WAS LIKELY ATTRIBUTABLE TO ENDOFTHEMONTH BUYING AS BARGAIN HUNTERS MOVED IN TO SNAP UP SOME RECENTLY BEATEN SMALLER STOCKS HE SAID HE DOESN'T THINK THE MARKET'S CORRECTION IS OVER I THINK THE CORRECTION COULD BE DEEPER AND LONGER THAN PEOPLE THINK HE SAID WE'RE STILL IN FOR MORE OF A DOWNWARD BIAS FEBRUARY WAS A TOPSYTURVY MONTH FOR THE STOCK MARKET TWO MAJOR PULLBACKS OCCURREDON FEB 4 WHEN THE FEDERAL RESERVE RAISED SHORTTERM RATES AND ON FEB 24 WHEN BONDS SANK THE RUSSELL 2000 REMAINS 099 OR 037 BELOW ITS JAN 31 LEVEL WHILE THE NASDAQ COMPOSITE IS 798 OR 1 SHY OF ITS RECORD OF 80048 SET JAN 31 9403010001 940301 LAW JUDGE CLEARS BROKERS IN SEC SUIT ALLEGING INSIDER STOCK TRADING NEW YORK A FEDERAL JUDGE DISMISSED CHARGES OF INSIDER TRADING BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AGAINST TWO STOCKBROKERS IN CONNECTION WITH PHILIP MORRIS COS' TAKEOVER OF KRAFT INC IN 1988 JUDGE LORETTA A PRESKA IN MANHATTAN NEW YORK SIGNED THE ORDER LAST WEEK DISMISSING THE CHARGES AGAINST FRANK S PETRONE AND JAMES ZANENGO OF RICKEL & ASSOCIATES IN MILLBURN NJ THE JUDGE SAID THE SEC DIDN'T MEET ITS BURDEN OF PROOF ANDREW GEIST ASSISTANT REGIONAL DIRECTOR FOR THE SEC'S NORTHEAST OFFICE SAID THE AGENCY WILL AWAIT A COPY OF THE RULING BEFORE DECIDING WHETHER TO APPEAL A THIRD DEFENDANT ANTHONY M MORELLI MR PETRONE'S FATHERINLAW AGREED TO PAY A 50000 FINE WITH NO ADMISSION OF GUILT ON THE EVE OF THE START OF TRIAL JAN 31 HE ALSO HAS BEEN ENJOINED FROM VIOLATING CERTAIN PROVISIONS OF FEDERAL SECURITIES LAW IN THE SUIT FILED IN JUNE 1991 THE SEC SAID MR MORELLI A DIRECTOR OF HEADQUARTERS SERVICES AT PHILIP MORRIS GAINED ACCESS TO INSIDE INFORMATION WHILE PREPARING A MEETING ROOM FOR EXECUTIVES JUST HOURS BEFORE THE TAKEOVER WAS ANNOUNCED THE SEC SAID MR MORELLI PASSED THE INFORMATION TO HIS SONINLAW WHO TOLD MR ZANENGO THE SEC ALLEGED MR ZANENGO TOLD TWO OTHER BROKERS MR ZANENGO HAS SINCE LEFT RICKEL THE COMPANY SAID MR GEIST SAID THE JUDGE FOUND MR MORELLI'S DENIALS CREDIBLE ADDING WE HAD NO WITNESSES WHO SAID MR MORELLI OVERHEARD CONVERSATIONS OR SAW DOCUMENTS RELATING TO THE TAKEOVER 9403010158 940201 REGULATORY CHOKEHOLD PARTIAL DECONTROL OF BABY BELLS RINGS HOLLOW BY THOMAS GALE MOORE THIS SPRING THE HOUSE WILL CONSIDER TWO COMPLEMENTARY BILLS ON THE NOW FAMOUS INFORMATION SUPERHIGHWAY THE ANTITRUST REFORM ACT AND THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT THE BILLS ARE AIMED AT LIFTING MOST OF THE LIMITATIONS ON LOCAL TELEPHONE AND CABLE COMPANIES ASPIRING TO COMPETE IN MULTIMEDIA SERVICES THE 1984 CONSENT AGREEMENT THAT BROKE UP AT&T PROHIBITED LOCAL TELEPHONE OPERATING COMPANIES FROM ENTERING THE LONGDISTANCE MARKET FROM MARKETING THEIR OWN INFORMATION SERVICES AND FROM MAKING TELEPHONE EQUIPMENT TO A DYEDINTHEWOOL FREEMARKETER SUCH AS MYSELF THESE RESTRAINTS APPEAR TO SUPPRESS COMPETITION AND BE WRONGHEADED YET THE PUBLIC AND CONGRESS SHOULD CONSIDER THE RATIONALE BEHIND THE ORIGINAL ANTITRUST AGREEMENT CAREFULLY BEFORE LIFTING THESE BANS THE LOCAL PHONE COMPANIES THE BABY BELLS ARE REGULATED MONOPOLIES AS SUCH THEY MUST JUSTIFY THEIR RATES TO A STATE PUBLIC UTILITIES COMMISSION A REQUIREMENT THAT THE ADMINISTRATION PLANS TO MAINTAIN LAW AND ECONOMICS REQUIRE THAT THESE AUTHORITIES GRANT TARIFFS HIGH ENOUGH FOR THE FIRMS TO EARN PROFITS IF A COMMISSION REFUSES TO APPROVE CHARGES THAT WILL COVER COSTS AND ALLOW A MODEST PROFIT THE UTILITY EVENTUALLY WILL FAIL AND EXIT THE BUSINESS NEEDLESS TO SAY THAT WOULD NOT BENEFIT THE TELEPHONE COMPANIES' CUSTOMERS NOR WOULD THE COURTS COUNTENANCE A COMMISSION'S COMMITTING SUCH FOLLY ARRIVING AT AN APPROPRIATE RATE IS NEITHER EASY NOR MECHANICAL THE PHONE COMPANY MUST EARN ENOUGH TO COVER THE COST OF ITS INVESTMENT INCLUDING INTEREST AND DIVIDENDS THUS THE REGULATORS MUST START BY VALUING THE REGULATED UTILITY'S INVESTMENTS THE RATE BASE THIS PROCEDURE IS COMPLEX AND SUBJECT TO IMPONDERABLES AMONG THE PROBLEMS ALL DATA ORIGINATE WITH THE REGULATED FIRM WHAT COSTS ARE PROPER TO INCLUDE IF THE FIRM IS BUYING FROM A SUBSIDIARY REGULATORS MUST JUDGE THE APPROPRIATENESS OF THE TRANSFER PRICE IN THE CASE OF A TELEPHONE COMPANY PURCHASING UNIQUE AND EXPENSIVE SWITCHING EQUIPMENT FROM ITS SUBSIDIARY FOR EXAMPLE REGULATORS WILL BE UNABLE TO DETECT WHETHER THE DAUGHTER COMPANY IS OVERCHARGING ITS PARENT AND THUS PROVIDING GROUNDS FOR THE REGULATED BELL COMPANY TO JUSTIFY CHARGING ITS CAPTIVE CUSTOMERS HIGHER PRICES ALTERNATIVELY IF THE STATE COMMISSION EXTENDS ITS OVERSIGHT TO MANUFACTURING FACILITIES THE REGULATED ENTERPRISE MAY FIND IT PROFITABLE TO LOSE MONEY IN THE COMPETITIVE MARKET POSSIBLY BY SELLING TELEPHONES TO THE PUBLIC AT LOW COST THUS INCREASING ITS SHARE OF THE MARKET AND THE SIZE OF ITS MANUFACTURING PLANT REGULATORS MUST THEN GRANT HIGH ENOUGH PHONE RATES TO COVER THE COMPANY'S SWOLLEN INVESTMENT INCLUDING THE EXPANDED TELEPHONE PRODUCTION FACILITY THE IMPOSSIBILITY OF SORTING OUT THESE SCHEMES LIES BEHIND THE ORIGINAL PROHIBITION ON THE BABY BELLS FROM MANUFACTURING OFFERING SERVICES OR ENTERING THE LONGDISTANCE MARKET THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT WHICH IS SPONSORED BY REP EDWARD MARKEY D MASS AND COSPONSORED BY REPS JACK FIELDS R TEXAS AND RICK BOUCHER D VA WOULD AUTHORIZE THE LOCAL PHONE COMPANIES TO OFFER CABLE TV SERVICE IN COMPETITION WITH EXISTING COMPANIES ALTHOUGH THE PROPOSED ACT BANS CROSSSUBSIDIZATION ACCOUNTING METHODS ARE TOO UNCERTAIN TO MEASURE INFLATED OR UNDERPRICED SERVICES FOR EXAMPLE OFFERING A CABLE SYSTEM WOULD REQUIRE THAT THE TELEPHONE COMPANY INSTALL ADDITIONAL CAPACITY PROBABLY FIBER OPTICS PAYING GENEROUS WAGES EMPLOYING ADDITIONAL LABOR IN ORDER TO SPEED THE INSTALLATION AND TIMING STREET DIGGING FOR OFFHOURS AT PREMIUM RATES TO MINIMIZE TRAFFIC DISRUPTION WOULD BOOST THE COST OF THE NEW CAPACITY SINCE REGULATORS MUST PERMIT A FAIR RETURN ON INVESTMENT THESE COSTLY BUT JUSTIFIABLE STEPS WOULD PERMIT THE REGULATED UTILITY TO RATIONALIZE HIGHER TELEPHONE CHARGES TO CAPTIVE RESIDENTIAL USERS WHILE ITS TV TRANSMISSION BUSINESS MET OR PERHAPS UNDERCUT THE RATES OF THE EXISTING CABLE COMPANY AS LONG AS THE BELL OPERATING COMPANIES REMAIN REGULATED LICENSING THEM TO COMPETE WITH NONREGULATED FIRMS TO MANUFACTURE SWITCHING EQUIPMENT OR OTHER TELECOMMUNICATIONS GEAR OR TO VIE IN THE LONGDISTANCE MARKET RAISES SIGNIFICANT OPPORTUNITIES FOR CROSSSUBSIDIZATION AND MANIPULATION OF THE RATE BASE LEADING TO INFLATED CHARGES TO RESIDENTIAL CUSTOMERS AND/OR BELOWCOST RATES IN COMPETITIVE SECTORS FAITH IN REGULATORS' ABILITIES TO DETECT THESE STRATAGEMS IS NOT JUSTIFIED ONLY TRUE DEREGULATION COULD ELIMINATE THESE BIASES TO BE SUCCESSFUL IT REQUIRES THAT STATES AND COMMUNITIES ALLOW ALL COMERS TO ENTER THE TELEPHONE BUSINESS RESTRICTIONS ON LICENSING RATES OR SERVICES WOULD BE INCOMPATIBLE WITH OPEN COMPETITION AT LEAST INITIALLY SUCH DECONTROL WOULD MEAN HIGHER CHARGES FOR LOCAL USERS ALTHOUGH RATES MIGHT FALL EVENTUALLY VICE PRESIDENT AL GORE HAS EMPHASIZED HOWEVER THAT ALL CITIZENS MUST HAVE ACCESS TO THIS NEW INFORMATION HIGHWAY SINCE MANY WILL BE UNWILLING OR UNABLE TO PAY THE COST OF CONNECTING TO THIS TELECOMMUNICATIONS NETWORK CROSSSUBSIDIES WHICH ARE INCOMPATIBLE WITH FREE MARKETS ARE ALMOST CERTAIN TO BE REQUIRED THE ADMINISTRATION DOES NOT INTEND TO PROVIDE TOTAL FREEDOM FROM STATE SUPERVISION IN A DECEMBER SPEECH MR GORE SAID THAT IT WILL ESCHEW REGULATION FOR REGULATION'S SAKE AND THE BLIND ADHERENCE TO THE DEAD HAND OF A FREEMARKET ECONOMIST NEVERTHELESS ONLY THE LIVE HAND OF A REALLY FREE MARKET IS COMPATIBLE WITH LIFTING THE RESTRICTIONS PLACED ON THE BELL OPERATING COMPANIES MR MOORE A HOOVER INSTITUTION FELLOW WAS A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS FROM 1985 TO 1989 SEE RELATED LETTER LETTERS TO THE EDITOR A WAY OUT OF THE BABY BELLS DILEMMA WSJ MARCH 1 1994 9402010169 YY94 MM03 9403010128 940201 LETTERS TO THE EDITOR IT'S INJUSTICE NOT IMMORALITY WE HATE GERTRUDE HIMMELFARB OBVIOUSLY HAS EXPERT KNOWLEDGE OF THE VICTORIAN PERIOD AND DID A GOOD JOB OF PROVING THAT THE FEMINIST SCHOOL OF THOUGHT DOES NOT SHARE ANYTHING WITH THE REAL VICTORIAN AGE NEW VICTORIANS' DON'T EARN THAT LABEL EDITORIAL PAGE JAN 12 HER INTERPRETATIONS OF CATHARINE MACKINNON'S WORK AND BELIEFS HOWEVER ARE INCORRECT AND MISLEADING HER DISCUSSION OF THE MORALITY FACTOR IN MS MACKINNON'S FEMINISM ILLUSTRATES THE MISUNDERSTANDING OF AND SUBSEQUENT ATTACK ON MS MACKINNON'S WRITINGS BY THE PRESS AND MAINSTREAM LIBERALS FIRST SHE IS WRONG WHEN SHE STATES THAT THIS FEMINISM PREACHES MORALITY BECAUSE IT ABSOLUTELY DOES NOT THE THINGS MS MACKINNON AND MYSELF OBJECT TO PORNOGRAPHY HATE SPEECH SEXUAL HARASSMENT AND RAPE ARE ODIOUS NOT BECAUSE THEY ARE IMMORAL BUT BECAUSE THEY DEGRADE HUMILIATE OPPRESS AND SILENCE WOMEN MORALITY HAS ABSOLUTELY NO PLACE IN THIS SCHOOL OF THOUGHT IT IS COMPLETELY REMOVED FROM THE SUBJECT MATTER BECAUSE FEMINISM SPROUTS NOT FROM IMMORALITY BUT FROM INJUSTICE PROVING THAT SHE HAS NOT THOROUGHLY READ MS MACKINNON MS HIMMELFARB CLAIMS THAT THEY MACKINNON'S FEMINISTS DO NOT PROPOSE TO DO ANYTHING ABOUT THE KINDS OF CRIME VIOLENT IRRATIONAL REPEATED AND REPEATEDLY UNPUBLISHED CRIME THAT IS THE MOST PRESSING CONCERN OF MOST CITIZENS THEY PROPOSE ONLY TO PASS NEW LEGISLATION TO PUNISH SPEECH OR CONDUCT NORMALLY REGARDED AS UNCIVIL RATHER THAN ILLEGAL THIS IS UNTRUE IN FACT THE VERY ACTS OF PROHIBITION SHE DISCUSSED EARLIER IN THE ARTICLE ARE THE PROPOSED DETERRENTS TO THOSE CRIMES PORNOGRAPHY HAS BEEN SHOWN TO INDUCE SEXUALLY VIOLENT BEHAVIOR IN IRRATIONAL INDIVIDUALS WITH PERVERTED SEXUAL FANTASIES THESE INDIVIDUALS WHO ARE NOT FEW ARE A THREAT AND A DANGER TO EVERY SINGLE WOMAN AND CHILD ADDITIONALLY SEXUAL CRIMES SUCH AS CHILD MOLESTATION RAPE AND STREET HARASSMENT ARE PERHAPS THE MOST REPEATED AND REPEATEDLY UNPUNISHED CRIMES IN OUR SOCIETY THESE CRIMES ARE CAUSED BY THE VERY SEXUAL EXPLOITATION DEGRADATION HUMILIATION DEHUMANIZATION AND DOMINATION OF WOMEN THAT IS PORTRAYED IN PORNOGRAPHY ANNOUNCED IN HATE SPEECH REVEALED IN SEXUAL HARASSMENT AND MANIFESTED IN RAPE THEREFORE THIS FEMINIST SCHOOL OF THOUGHT IS FIGHTING TO PROTECT WOMEN FROM VIOLENT CRIMES NOT DICTATE MORALITY TO MEN OR WOMEN THE VICTORIAN AGE WAS ONE OF THE MOST OPPRESSIVE AND TORMENTING PERIODS OF WOMEN'S HISTORY I FIND IT LUDICROUS THAT A WOMAN IN 1994 CAN PORTRAY VICTORIAN WOMEN AS HAVING A MORE FAVORABLE OUTLOOK THAN MS MACKINNON'S FEMINISTS FEMINISTS LIKE CATHARINE MACKINNON AND CULTURAL CONSERVATIVES LIKE RUSSELL KIRK HAVE FOUND COMMON GROUND IN THEIR OPPOSITION TO PORNOGRAPHY SOME ALARMING EVIDENCE BUTTRESSES THE CONTENTION THAT PORNOGRAPHY CONTRIBUTES TO SEX CRIMES AND VIOLENCE TWENTYNINE OF 36 SERIAL MURDERERS INTERVIEWED BY THE FBI CONFESSED THAT PORNOGRAPHY HAD A NEGATIVE IMPACT ON THEIR THINKING AND BEHAVIOR THE LOS ANGELES POLICE DEPARTMENT POINTS OUT THAT IN THE MORE THAN 40 CHILD SEX ABUSE CASES IT INVESTIGATED BETWEEN OCTOBER 1976 AND MARCH 1977 PORNOGRAPHIC PHOTOS WERE FOUND IN EVERY CASE ACCORDING TO POLICE VICE SQUADS ACROSS THE NATION 77 OF MOLESTERS OF BOYS AND 87 OF MOLESTERS OF GIRLS CONFESSED TO IMITATING THE SEXUAL BEHAVIOR DEPICTED IN PORNOGRAPHY A STUDY BY CANADIAN PSYCHOLOGIST DR WILLIAM MARSHALL OF RAPISTS IN CANADIAN PRISONS FOUND THAT VARIOUS FORMS OF PORNOGRAPHIC FANTASIES MAY LEAD TO CRIME PORNOGRAPHY REDUCES SEX TO A PLAYTHING HUMAN BEINGS TO MERE BODIES AND HUMAN BODIES TO SEX MACHINES IT DENIGRATES THE SACREDNESS OF SEX MARRIAGE FAMILY AND HUMAN LIFE IT TRANSFORMS SEX FROM A SACRED UNION OF LIFE AND LOVE TO A TOOL OF VOYEURISTIC GRATIFICATION CERTAINLY PORNOGRAPHY HELPS CREATE A MORAL AND SOCIAL CLIMATE CONDUCIVE TO SEXUAL ABUSE AND EXPLOITATION IF THE GREAT WORKS OF THE MORAL AND INTELLECTUAL GIANTS OF CIVILIZATION CAN EDUCATE ENLIGHTEN AND INSPIRE THEN PORNOGRAPHIC WORKS CAN CORRUPT BY GLAMORIZING AND ENCOURAGING PERNICIOUS IDEAS AND BEHAVIOR IDEAS DO HAVE CONSEQUENCES SEE RELATED LETTER LETTERS TO THE EDITOR JUSTICE AND MORALITY CANNOT BE SEPARATED WSJ MARCH 1 1994 9402010148 YY94 MM03 9403010018 940217 INTERNATIONAL FORMER BANKERS ARE CONVICTED IN '83 ISRAEL CASE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM THE FORMER HEADS OF ISRAEL'S TOP FOUR BANKS WERE CONVICTED OF FRAUD FOR THEIR ROLE IN A 1983 STOCK SCANDAL THAT LED TO THE COLLAPSE OF ISRAEL'S SECURITIES MARKET AND A 7 BILLION GOVERNMENT BAILOUT IN A LENGTHY DECISION CAPPING A TWOYEAR TRIAL JERUSALEM DISTRICT COURT JUDGE MIRIAM NAOR HARSHLY CRITICIZED THE BANKERS WHO INCLUDE SOME OF THE MOST PROMINENT FIGURES IN ISRAELI FINANCIAL CIRCLES SAYING THAT BY VIOLATING PUBLIC TRUST THEY HAD HARMED THE BANKING SYSTEM'S MOST VALUABLE ASSET BANK HAPOALIM BANK LEUMI UNITED MIZRAHI BANK AND ISRAEL DISCOUNT BANK WERE ALSO CONVICTED ALONG WITH 11 OTHER FORMER SENIOR OFFICIALS THE OFFICIALS FACE UP TO FIVE YEARS IN JAIL SENTENCING IS SET FOR NEXT MONTH ALL DECLINED TO COMMENT AFTER THE VERDICT WAS READ ERNST JAPHET FORMER CHAIRMAN OF BANK LEUMI STILL FACES TRIAL AFTER HE WAS EXTRADITED FROM THE US WHERE HE HAD FLED AFTER THE SCANDAL THIS IS A LANDMARK DECISION BECAUSE IT ESTABLISHES THE PRINCIPLE OF ACCOUNTABILITY FOR ECONOMIC TRANSGRESSIONS A PRINCIPLE THAT HAS NEVER REALLY BEEN ENFORCED IN ISRAEL SAYS MARSHALL SARNAT A CAPITALMARKETS EXPERT WHO PARTICIPATED IN THE PUBLIC COMMISSION SET UP IN THE WAKE OF THE CRASH TO EXAMINE WHAT HAD GONE WRONG THE BANKERS WERE ACCUSED OF MANIPULATING THEIR OWN BANKS' STOCK PRICES IN ORDER TO OFFER INVESTORS HIGHER RETURNS JUDGE NAOR WROTE IN HER DECISION THAT THE DEFENDANTS FOUND THEMSELVES LOCKED IN A SNOWBALL EFFECT WHICH FORCED THEM TO CONTINUE PROPPING UP PRICES ARTIFICIALLY AS THE MAGNITUDE OF THE POTENTIAL LOSSES GREW THE CHARADE ENDED IN AUTUMN 1983 WHEN INVESTORS ANTICIPATING A DEVALUATION BEGAN DUMPING BANK SHARES IN FAVOR OF FOREIGN CURRENCY THE MARKET COLLAPSED AND THE TEL AVIV STOCK EXCHANGE SHUT DOWN FOR TWO WEEKS WHILE A 7 BILLION BAILOUT WAS NEGOTIATED UNDER IT THE GOVERNMENT MADE LOANS TO SUBSIDIARY COMPANIES OF EACH BANK WHICH USED THE FUNDS TO REPURCHASE THE SHARES THE GOVERNMENT ULTIMATELY TOOK CONTROL OF THE BANKS AND THE STATE NOW IS SELLING OFF THE BANKS AS PART OF A PRIVATIZATION DRIVE YESTERDAY'S DECISION IS THE CLIMAX TO A SCANDAL THAT CAUSED MANY ISRAELIS TO LOSE THEIR LIFE SAVINGS THE EVENTS OF 10 YEARS AGO STILL CAST A SHADOW OVER THE FINANCIAL SITUATION THE COLLAPSE PRECIPITATED FARREACHING REFORMS OF THE SECURITIES MARKET BUT MANY RECOMMENDATIONS FOR CHANGE MADE BY THE PUBLIC INQUIRY COMMISSION HAVEN'T YET BEEN IMPLEMENTED ISRAEL'S BANKS STILL SERVE AS THE COUNTRY'S LEADING STOCKBROKERS AND INVESTMENT ADVISERS SAYS MR SARNAT AND OVERWHELMINGLY DOMINATE THE EQUITY MARKET THROUGH THEIR OWNERSHIP OF MOST OF THE COUNTRY'S NONBANKING FINANCIAL INSTITUTIONS SUCH AS MUTUAL FUNDS AND INSURANCE COMPANIES THIS DECISION IS FOOD FOR THOUGHT ABOUT THE NEED FOR A MUCH MORE THOROUGH SEPARATION AND RESTRUCTURING OF THE MARKET MR SARNAT SAID ERNST JAPHET FORMER CHAIRMAN OF ISRAEL'S BANK LEUMI VOLUNTARILY RETURNED TO ISRAEL RECENTLY TO FACE POSSIBLE TRIAL IN CONNECTION WITH THE 1983 STOCK SCANDAL A FEB 17 ARTICLE ON THE CONVICTIONS OF OTHER FORMER OFFICERS OF ISRAELI BANKS SAID INCORRECTLY THAT MR JAPHET HAD BEEN EXTRADITED 9403010119 940131 AND FEDERAL MANDATES CRUSH STATES BY GEORGE V VOINOVICH UNFUNDED FEDERAL MANDATES ARE PLACING SEVERE PRESSURE ON TAXPAYERS NATIONWIDE CRIPPLING STATE BUDGETS FROM MAINE TO CALIFORNIA THESE MANDATES ARE FEDERAL PROGRAMS ENACTED BY CONGRESS BUT WITH A CATCH THEY MUST BE FINANCED WITH STATE AND LOCAL RESOURCES THROUGH THIS SLEIGHT OF HAND CONGRESS COMPELS STATES AND LOCALITIES TO FUND PROGRAMS WASHINGTON CANNOT BECAUSE OF THE PERSISTENT BUDGET DEFICIT THIS SUMMER OHIO RELEASED A STUDY ANALYZING THE EFFECTS OF UNFUNDED MANDATES WE DETERMINED THAT FEDERAL MANDATES WILL COST OHIO 356 MILLION IN 1994 AND MORE THAN 174 BILLION IN 199295 FEDERAL MANDATES INTERFERE WITH A FUNDAMENTAL TASK OF GOVERNMENTSETTING PRIORITIES PERHAPS THE MOST GLARING EXAMPLE IS THE FORCED TRADEOFF BETWEEN MEDICAID AND EDUCATION IN THE PAST FIVE YEARS EDUCATION DECLINED AS A SHARE OF STATE SPENDING AT A TIME WHEN EDUCATIONAL IMPROVEMENT SHOULD BE ONE OF OUR HIGHEST PRIORITIES MANY STATES CANNOT SPEND A GREATER SHARE OF TAX DOLLARS ON EDUCATION BECAUSE NEW MEDICAID MANDATES CONSUME MORE AND MORE STATE RESOURCES INCREASING TO 263 MILLION FOR OHIO IN 1995 FROM 185 MILLION IN 1992 WHILE MOST MANDATES MAY REFLECT WELLINTENTIONED POLICY GOALS MANY IMPOSE EXCESSIVE COSTS WITHOUT ANY DISCERNIBLE BENEFIT FOR EXAMPLE RECENT FEDERAL HIGHWAY LAW REQUIRES STATES TO USE A SCRAPTIRE ADDITIVE IN HIGHWAY PAVEMENT BY 1997 THIS MANDATE WILL COST OHIO MORE THAT 50 MILLION A YEAR BECAUSE EARLY TESTS SHOW THAT RUBBERIZED ASPHALT IS TWO TO THREE TIMES MORE EXPENSIVE THAN CONVENTIONAL PAVEMENT THE NATIONAL COST IS ROUGHLY 1 BILLION TO PUT THIS 50 MILLION FIGURE IN PERSPECTIVE FOR THE SAME COST OHIO COULD REPAVE 667 MILES OF RURAL HIGHWAYS OR REHABILITATE 137 BRIDGES INCREDIBLY THIS MANDATE WAS ENACTED WITHOUT ANY ASSESSMENT OF ITS IMPACT AND EXPERTS HAVE REAL QUESTIONS ABOUT THE DURABILITY AND ENVIRONMENTAL EFFECTS OF RUBBERIZED ASPHALT UNFUNDED MANDATES ALSO PREEMPT IMPORTANT STATE INITIATIVES IN OHIO FOR EXAMPLE WE DEVELOPED A COMPREHENSIVE SOLID WASTE MANAGEMENT PLAN YET WE ARE REQUIRED TO CHANGE MOST OF OUR LANDFILL RULES TO CONFORM TO FEDERAL STANDARDS THAT IN SOME RESPECTS ARE WEAKER THAN OUR OWN OHIO REGULATORS ARE ALSO INCREASINGLY BEING SWAMPED BY FEDERAL PAPERWORK REQUIREMENTS INHIBITING CLEANUP OF LANDFILLS THAT POSE ENVIRONMENTAL RISKS CITIES AND LOCALITIES IN PARTICULAR ARE HEAVILY BURDENED BY ENVIRONMENTAL MANDATES LAST YEAR A COLUMBUS OHIO ANALYSIS FOUND THAT ENVIRONMENTAL MANDATES WILL COST NINE OHIO CITIES 28 BILLION OVER 10 YEARS THE SAFE DRINKING WATER ACT RESPONSIBLE FOR MANY OF THESE COSTS REQUIRES THE ENVIRONMENTAL PROTECTION AGENCY TO IDENTIFY 25 NEW SUBSTANCES EVERY THREE YEARS THAT LOCAL SYSTEMS MUST TEST FOR IN THEIR WATER SUPPLY BECAUSE EPA ARBITRARILY MUST IDENTIFY A SET NUMBER OF SUBSTANCES WITHOUT ANY ASSESSMENT OF LOCAL CONDITIONS OR HEALTH RISKS CITIES NATIONWIDE MUST BEAR THE COSTS OF TESTING THEIR DRINKING WATER FOR PESTICIDES USED ONLY IN HAWAII TO PROTECT PINEAPPLE CROPS GOVERNORS MAYORS COUNTY OFFICIALS AND STATE LEGISLATORS ARE WORKING TOGETHER TO FIGHT MANDATES AND TO POOL THEIR CLOUT IN WASHINGTON BUT CONGRESS CONTINUES TO PASS AND THE PRESIDENT CONTINUES TO SIGN LEGISLATION IMPOSING UNFUNDED MANDATES THE PAST SESSION OF CONGRESS ENACTED NO LESS THAN 13 BILLS IMPOSING NEW COSTS ON STATES INCLUDING SEVERAL THE PRESIDENT CLAIMED AS MAJOR ACCOMPLISHMENTS DURING HIS STATE OF THE UNION ADDRESS CONGRESS AND THE PRESIDENT MUST END THIS IRRESPONSIBLE PRACTICE THE NATION CAN NO LONGER AFFORD THE LOCAL TAX BURDEN AND SERVICE REDUCTIONS NECESSARY TO FUND PROGRAMS DICTATED BY WASHINGTON MR VOINOVICH A REPUBLICAN IS GOVERNOR OF OHIO SEE RELATED LETTER LETTERS TO THE EDITOR PINEAPPLE' PESTICIDE POSES REAL RISKS WSJ MARCH 1 1994 9401310170 YY94 MM03 9403010100 940128 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY FACTIONS JOCKEY IN THE WHITE HOUSE FOR CLINTON'S ATTENTION WITH NO ONE IN CHARGE OF COORDINATING THE OVERALL STRATEGY EACH ISSUE HAS ITS OWN CHAMPION BATTLING FOR TIME AMONG THE TOP AIDES STEPHANOPOULOS FOCUSES ON HEALTH GERGEN TAKES ON CRIME AND TO A RISING DEGREE WELFARE ENDLESS MEETINGS ARE UNDER WAY TO PARSE THE BEST SEQUENCING AND PRESIDENTIAL TIME ALLOCATION HEALTHCARE PEOPLE EXPECT THE PRESIDENT TO DO ONE OR TWO HEALTH EVENTS EACH WEEK THROUGH MARCH MRS CLINTON ALSO WILL TRAVEL WIDELY TO STUMP FOR THE PLAN BUT THE PRESIDENT ALSO SHOWS A RISING INTEREST IN CRIME AS A POLITICAL ISSUE AND WITH THE ADDITIONAL NEED TO FASHION A WELFARE PROPOSAL STARTING NEXT MONTH EXPECT OTHER ISSUES MOST NOTABLY GORE'S REINVENTINGGOVERNMENT INITIATIVE TO FALL FROM VIEW THE WHITE HOUSE ALSO WILL TREAD LIGHTLY ON FOREIGN AFFAIRS DUE IN PART TO THE DISARRAY IN THE FOREIGNPOLICY TEAM CLINTON'S AGENDA POSES LOGISTICAL PROBLEMS FOR FINANCE AND TAX COMMITTEES AFTER PRESSURING CLINTON TO MOVE FASTER ON WELFARE SENATE FINANCE CHAIRMAN MOYNIHAN SCHEDULES HEALTH HEARINGS THAT COULD RUN INTO LATE APRIL DESPITE CLINTON'S PROMISE OF A WELFARE PROPOSAL THIS SPRING MOYNIHAN IS HUGELY SKEPTICAL THE ADMINISTRATION IS GOING TO SEND HIM A BILL SAYS GOP SEN WALLOP MOYNIHAN HIMSELF PRIVATELY REMINDS MEMBERS OF GORE'S REMARK THAT SPRING TECHNICALLY RUNS TO MIDJUNE MEANWHILE WITH HEALTH CARE FIRST PRIORITY FOR THE HOUSE LEADERSHIP THE WHITE HOUSE CONSIDERS PUSHING PORTIONS OF THE WELFARE BILL THROUGH THE PANELS THAT ACT EARLY ON HEALTH PARTICULARLY THE HOUSE LABOR COMMITTEE SUPPLYSIDERS SCRAMBLE TO EXPLAIN AWAY THE ECONOMY'S STRENGTH PREDICTIONS THAT CLINTON'S TAX INCREASES WOULD STRANGLE THE RECOVERY IN ITS CRADLE SEEM UNFOUNDED MAINSTREAM ECONOMISTS ISSUE INCREASINGLY OPTIMISTIC FORECASTS BUT SUPPLYSIDERS INSIST CLINTON HAS JUST BEEN LUCKY SO FAR AND THAT DOOM IS JUST AROUND THE CORNER PERHAPS AS SOON AS LATER THIS YEAR CLINTON'S TAX INCREASE IS A CORROSIVE LONGERTERM EFFECT ON INVESTMENT AND PRODUCTION SAYS FORMER REAGAN ECONOMIST LAWRENCE KUDLOW WE WILL SEE OVER TIME A WET BLANKET OVER THE SUPPLY SIDE OF THE ECONOMY THE HUDSON INSTITUTE'S ALAN REYNOLDS SAYS DECLINES IN LONGTERM INTEREST RATES ARE BUOYING THE ECONOMY BUT HE CREDITS WEAK ECONOMIES ABROAD NOT CLINTON'S DEFICITREDUCTION EFFORT SUPPLYSIDE PROSELYTIZER JUDE WANNISKI HAS A NEW VILLAIN IF CLINTON'S TAX INCREASES DON'T CHOKE OFF GROWTH HE SAYS THE HEALTH PLAN WILL AT THE FED WHERE EVEN OFFHAND COMMENTS CAN MOVE MARKETS SOME OFFICIALS ARE EDGY BECAUSE LIKELY NOMINEE GEORGE PERRY'S WIFE DINA IS A PORTFOLIO MANAGER FOR THREE STOCK MUTUAL FUNDS EVEN SOME IN THE ADMINISTRATION ARE CONCERNED BUT THE WHITE HOUSE CONCLUDES THERE ARE NO LEGAL PROBLEMS AND PENDING AN INTERVIEW WITH CLINTON HIMSELF THE NOMINATION IS STILL ON TRACK NO CURRENT FED GOVERNOR HAS A WORKING SPOUSE CLINTON TRIES TO SOUND TIGHTFISTED WHILE ALSO TOUTING INCREASES FOR HIS INVESTMENTS AS BUDGET DAY NEARS LABOR SECRETARY REICH SAYS THE FEB 7 BUDGET WILL PROPOSE SPENDING CUTS TO FINANCE CLINTON'S REEMPLOYMENT TRAINING AND JOBSEARCH INITIATIVE WHEN FULLY PHASED IN IT WILL COST ABOUT 3 BILLION A YEAR ANOTHER BIG WINNER AID TO INNERCITY SCHOOLS SUPERFUND SNAG THE JUSTICE DEPARTMENT RAISES CONSTITUTIONAL OBJECTIONS TO CLEANUPARBITRATION PROVISIONS IN THE ADMINISTRATION'S REWRITE OF THE 1980 TOXICWASTE LAW BUT THE ADMINISTRATION STILL EXPECTS TO FINISH THE PROPOSAL WITHIN TWO WEEKS AND FOR FINETUNING CONSULTS WITH GE ARCO AND THE AMERICAN INSURANCE ASSOCIATION CHINA HAND LOOK FOR DEFENSE SECRETARYDESIGNATE PERRY TO TAKE A BIGGER ROLE IN CHINA POLICY ONE POSSIBILITY A SINOAMERICAN COMMISSION ON DEFENSE CONVERSION THAT WOULD LEARN FROM THE CHINESE EXPERIENCE APPLY IT TO OTHER NATIONS AND GET A BETTER HANDLE ON THE INNER WORKINGS OF THE SEMIAUTONOMOUS CHINESE ARMS INDUSTRY REPUBLICANS FLINCH FROM A FIGHT OVER FINANCING EARTHQUAKE AID THOUGH SOME CONSERVATIVES WANT THE ADMINISTRATION TO COME UP WITH OFFSETTING BUDGET CUTS MOST REPUBLICANS DECIDE IT ISN'T WORTH THE POLITICAL TROUBLE TO FIGHT FOR THEM HOUSE GOP LEADER BOB MICHEL HASN'T ENDORSED OFFSETTING CUTS AND SENATE REPUBLICANS HAVEN'T RALLIED BEHIND DOLE'S INITIAL NOISES IN THAT DIRECTION FINDING CUTS TO OFFSET 7 BILLION IN EARTHQUAKE AID WITH JUST EIGHT MONTHS LEFT IN THE FISCAL YEAR WOULD BE A PAINFUL PROCESS BEYOND THAT WITH A SHAKY GOV WILSON SEEKING REELECTION AND REP HUFFINGTON CHALLENGING SEN FEINSTEIN REPUBLICANS CAN'T AFFORD TO BE SEEN AS AN OBSTACLE TO RELIEF ONE OBJECT LESSON IOWA GOP REP NUSSLE WHO PUSHED FOR CUTS TO OFFSET MIDWEST FLOOD AID NOW APPEARS TO BE IN DEEP POLITICAL TROUBLE BACK HOME MINOR MEMOS BUT SERIOUSLY FOLKS THE PENTAGON ANNOUNCES A NEW LINE OF SHIPS THE BOB HOPE CLASS LINE OF MEDIUMSPEED NAVY CARGO VESSELS I'VE BEEN DISAPPOINTED IN THE NUMBER OF DISASTERS OVER THE LAST FEW YEARS FRANKLY WHITE HOUSE BUDGET DIRECTOR PANETTA SAYS RUMORS OF A PENDING BENTSEN SPEECH ON THE YEN SEND CURRENCY TRADERS INTO A FRENZY BUT THE SPEAKER TURNS OUT TO BE FRED BERGSTEN OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS SEE RELATED LETTER LETTERS TO THE EDITOR I'M BULLISH NOT BEARISH WSJ MARCH 1 1994 9401280059 YY94 MM03 9402280168 940228 MORGAN STANLEY SEEKS TO UNDERWRITE BUSINESSES IN CHINA BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA MORGAN STANLEY GROUP INC HOPES TO GRAB A LARGER SLICE OF THE UNDERWRITING BUSINESS IN CHINA SO FAR CEDED TO RIVALS MERRILL LYNCH & CO BRITAIN'S BARINGS SECURITIES FRANCE'S CREDIT LYONNAIS AND LOCAL COMPETITORS THE INVESTMENT BANK OPENED A SHANGHAI OFFICE FRIDAY ITS FIRST IN CHINA AND HAS APPLIED TO OPEN A SECOND IN BEIJING PRESIDENT JOHN MACK SAID HE SAID THE FIRM AIMS TO BE AMONG THE FIRST FULL FOREIGN MEMBERS OF THE SHANGHAI STOCK EXCHANGE WHEN IT OPENS TO OUTSIDE INSTITUTIONS MORGAN STANLEY WILL COMPETE TO UNDERWRITE AS MANY AS THREE OF THE 22 CHINESE COMPANIES SELECTED THIS YEAR FOR STOCKMARKET LISTINGS ABROAD MR MACK SAID AMONG THEM IT HAS FOCUSED ON THE HIGHPROFILE CHINA EASTERN AIRLINES WHICH IS VYING FOR A PRIMARY LISTING ON THE NEW YORK STOCK EXCHANGE IN 1994 MORGAN OFFICIALS SAID THE FIRM IS ON CHINA EASTERN'S SHORT LIST ALSO THOUGHT TO INCLUDE GOLDMAN SACHS & CO AND MERRILL LYNCH MORGAN IS ALSO COMPETING WITH SEVERAL INVESTMENT BANKS FOR THE POSITION OF LEAD UNDERWRITER FOR CHINA'S MASSIVE THREE GORGES DAM HYDROELECTRIC PROJECT THE DAM IF COMPLETED AS DESIGNED WOULD BE THE LARGEST IN THE WORLD AND WOULD REQUIRE AT LEAST 22 BILLION IN FINANCING THE PROJECT HAS ATTRACTED HEAVY OPPOSITION FROM ENVIRONMENTALISTS IN CHINA AND WORLDWIDE WHO FEAR IT WILL DESTROY THE SCENIC THREE GORGES ALONG THE YANGTZE RIVER AND THREATEN SEVERAL ENDANGERED SPECIES BUT MORGAN JAPAN'S NOMURA SECURITIES MERRILL LYNCH AND SALOMON BROTHERS A UNIT OF SALOMON INC HAVE ALL EXPRESSED INTEREST IN REPRESENTING THE GOVERNMENT ON THE DAM SPEAKING OF THE PROJECT'S COST MR MACK SAID A SUBSTANTIAL PORTION OF THAT WILL BE RAISED OUTSIDE CHINA I EXPECT MORGAN STANLEY WOULD HAVE A ROLE IN THAT MERRILL LYNCH OPENED AN OFFICE IN SHANGHAI LAST YEAR JP MORGAN HAS ANNOUNCED PLANS TO DO SO THIS SPRING 9402280167 940228 WHAT'S NEWS WORLDWIDE ISRAEL SOUGHT TO QUELL RISING VIOLENCE AFTER FRIDAY'S MASSACRE IN HEBRON THE ISRAELI CABINET ORDERED THE ARREST OF FIVE LEADERS OF A JEWISH EXTREMIST GROUP AND SAID IT WOULD BEGIN DISARMING RADICAL SETTLERS THE ACTION CAME AS CLASHES BROKE OUT IN THE AFTERMATH OF THE SLAYINGS OF AT LEAST 39 PALESTINIANS BY A JEWISH GUNMAN THE CABINET ALSO MOVED TO SET UP A PANEL TO INVESTIGATE THE CONDUCT OF THE ISRAELI ARMY DURING THE MASSACRE IN A WEST BANK MOSQUE PLO LEADER ARAFAT ACCUSED ISRAELI SOLDIERS OF HELPING THE ASSAILANT AND SAID WITNESSES REPORTED THE KILLINGS WERE THE WORK OF AS MANY AS 12 MEN ARAFAT STOPPED SHORT OF CALLING FOR AN END TO PEACE TALKS BUT HE SAID THEY CAN'T PROCEED WITHOUT PROTECTION FOR PALESTINIANS IN OCCUPIED LANDS YELTSIN'S AIDES RULED OUT ANY EFFORT TO REVOKE AMNESTY FOR HIS OPPONENTS THE PRESIDENT'S ADVISERS SAID IT WAS UNLIKELY HE WOULD TAKE LEGAL STEPS TO FIGHT THE AMNESTY GRANTED BY PARLIAMENT TO SOME OF HIS JAILED OPPONENTS FORMER VICE PRESIDENT RUTSKOI PARLIAMENT EXCHAIRMAN KHASBULATOV AND OTHERS INVOLVED IN AN OCTOBER REBELLION AGAINST YELTSIN WERE FREED FROM PRISON ON SATURDAY RUSSIA'S PROSECUTORGENERAL RESIGNED RATHER THAN ACCEDE TO THE PRESIDENT'S REQUEST TO BLOCK THE RELEASE AN AIDE TO RUTSKOI SAID HE PROBABLY WILL RUN FOR PRESIDENT IN THE NEXT ELECTION IN 1996 HOWEVER KHASBULATOV DECLARED THAT HE WAS QUITTING POLITICS A BOMB EXPLODED IN A MARONITE CATHOLIC CHURCH IN LEBANON KILLING NINE WORSHIPERS AND INJURING AT LEAST 60 ONE LEBANESE OFFICIAL CHARGED THAT ISRAEL CARRIED OUT THE ATTACK TO COVER UP FRIDAY'S KILLINGS OF PALESTINIANS IN HEBRON LEBANON'S INFORMATION MINISTER SAID THE BLAST MAY HAVE BEEN AIMED AT FOILING A PAPAL VISIT THIS SPRING THE US EXPELLED RUSSIA'S TOP INTELLIGENCE OFFICER AMID AN UNFOLDING SPY SCANDAL AFTER MOSCOW REFUSED TO WITHDRAW HIM US OFFICIALS EXPECT RUSSIA TO RETALIATE BY EXPELLING THE TOP CIA OFFICIAL FROM THE US EMBASSY IN MOSCOW A MUSLIMCROAT TRUCE APPEARED SHAKY IN BOSNIA PROMPTING THE UN COMMANDER TO REQUEST MORE PEACEKEEPING TROOPS IN WASHINGTON MUSLIM AND CROAT OFFICIALS OPENED PEACE TALKS ON SATURDAY SOUTH KOREA REPORTEDLY WILL CONTACT NORTH KOREA TO PROPOSE A RESUMPTION IN TALKS TOMORROW ON THE EXCHANGE OF ENVOYS THE FIRST SUCH EXCHANGE IN FOUR MONTHS THE PYONGYANG GOVERNMENT ON FRIDAY AGREED TO ALLOW INSPECTIONS OF NUCLEAR SITES DEPUTY TREASURY CHIEF ALTMAN RECUSED HIMSELF FROM MATTERS RELATING TO A FAILED ARKANSAS THRIFT ALTMAN THE INTERIM HEAD OF THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY SAID HE WILL REFRAIN FROM DECISIONS INVOLVING THE FAILED MADISON GUARANTY SAVINGS & LOAN THE FDA SAID THAT THERE IS GROWING EVIDENCE THAT TOBACCO COMPANIES DELIBERATELY MAINTAIN THE LEVEL OF NICOTINE IN CIGARETTES AT ADDICTIVE LEVELS THE FINDING IF CONFIRMED MIGHT PROVIDE A LEGAL BASIS FOR THE AGENCY'S REGULATION OF CIGARETTES AS A DRUG A TEXAS JURY ACQUITTED 11 BRANCH DAVIDIANS OF MURDER REJECTING CLAIMS THEY AMBUSHED FEDERAL AGENTS FIVE WERE CONVICTED OF VOLUNTARY MANSLAUGHTER SATURDAY'S VERDICT CAME ALMOST A YEAR AFTER A BOTCHED RAID BY GOVERNMENT AGENTS THAT LEFT FOUR AGENTS AND SIX CULTISTS DEAD IN WACO AN IRA LEADER AGAIN DASHED HOPES FOR AN EARLY END TO VIOLENCE IN NORTHERN IRELAND GERRY ADAMS PRESIDENT OF SINN FEIN THE IRA'S POLITICAL WING TOLD A WEEKEND PARTY CONFERENCE THAT A JOINT BRITISHIRISH PEACE PLAN DOESN'T OFFER ENOUGH BRITISH CONCESSIONS THE WHITE HOUSE IS CONSIDERING SEEKING A WAIVER IN THE DEFICITREDUCTION LAW TO PAY FOR A NEW GLOBAL TRADE PACT NEGOTIATED UNDER GATT BECAUSE IT WOULD COST THE US AN ESTIMATED 11 BILLION TO 14 BILLION IN REDUCED TARIFFS OVER FIVE YEARS HOST NATION NORWAY WON 26 MEDALS AT THE WINTER OLYMPICS IN LILLEHAMMER FOLLOWED BY GERMANY WITH 24 MEDALS AND RUSSIA WITH 23 THE US COLLECTED 13 MEDALS ITS HIGHEST WINTER MEDAL TOTAL EVER DIED JERSEY JOE WALCOTT 80 EXHEAVYWEIGHT BOXING CHAMP WHO KNOCKED DOWN JOE LOUIS THREE TIMES IN TWO TITLE BOUTS BUT LOST BOTH OF THEM FRIDAY IN CAMDEN NJ 9402280166 940228 ECONOMY MANPOWER JOB SURVEY PREDICTS MORE HIRING DURING SECOND PERIOD MILWAUKEE EMPLOYMENT IN THE SECOND QUARTER SHOULD SHOW THE STRONGEST GAINS IN A YEAR AIDED BY SIGNIFICANT HIRING INCREASES IN THE MIDWEST AND AMONG DURABLEGOODS MANUFACTURERS A QUARTERLY JOBOUTLOOK SURVEY SUGGESTS THE SURVEY BY MANPOWER INC PREDICTS THAT ON A SEASONALLY ADJUSTED BASIS 16 MORE EMPLOYERS WILL BE ADDING TO THEIR WORK FORCE NEXT QUARTER THAN REDUCING STAFF THAT NETHIRING INCREASE WOULD COMPARE WITH A 13 INCREASE IN THE FIRST QUARTER AND WOULD MATCH THE INCREASE OF THE YEAREARLIER PERIOD THE SURVEY CANVASSES ABOUT 15000 US COMPANIES THE NEW NUMBERS REPRESENT A MODEST BUT CLEAR CONTINUATION IN THE RISE OF EMPLOYMENT ACTIVITY SAID MITCHELL S FROMSTEIN PRESIDENT OF THE EMPLOYMENTSERVICES CONCERN THE ANTICIPATED NATIONWIDE INCREASE MASKS WIDE REGIONAL DIFFERENCES THE SURVEY INDICATES SOME 32 OF MIDWEST COMPANIES SAY THEY'LL SEEK MORE WORKERS IN THE SECOND QUARTER WHILE ONLY 6 PLAN TO CUT BACK AMONG SOUTHERN CONCERNS 26 PLAN FURTHER HIRING AND 6 PLAN TO PARE STAFF THE NORTHEAST AND WEST LAG IN NETHIRING EXPECTATIONS BY INDUSTRY MAKERS OF AUTOS APPLIANCES AND OTHER DURABLE GOODS FORESEE THE BIGGEST NETHIRING GAINS IN FIVE YEARS AFTER ADJUSTING FOR SEASONAL FACTORS 23 MORE DURABLEGOODS MANUFACTURERS SAY THEY'LL EXPAND THEIR WORK FORCE IN THE SECOND QUARTER THAN THOSE WHO PLAN TO DECREASE EMPLOYMENT NETHIRING GAINS OF 21 ARE SEEN IN THE WHOLESALE AND RETAIL TRADE SECTOR WHILE CONSTRUCTION CONCERNS ANTICIPATE A NETHIRING INCREASE OF 20 AND MAKERS OF NONDURABLE GOODS SUCH AS FOOD AND CLOTHING SEE A 16 NETHIRING GAIN THE WEAKEST INDUSTRIES ARE MINING WHICH ANTICIPATES A 1 INCREASE AND THE TRANSPORTATION AND PUBLICUTILITIES SECTOR FORECASTING A 4 GAIN 9402280165 940228 NUTRI/SYSTEM TO OFFER WELLNESS' PLAN OF J&J AS PART OF WEIGHTLOSS PROGRAM BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NUTRI/SYSTEM LIMITED PARTNERSHIP COMING BACK FROM BANKRUPTCYLAW PROCEEDINGS IS COUNTING ON A TIEUP WITH HEALTHCARE GIANT JOHNSON & JOHNSON TO GET ITS FINANCIAL PROFILE INTO SHAPE THE HORSHAM PA COMPANY ACQUIRED AN EXCLUSIVE LICENSE TO OFFER AS PART OF ITS WEIGHTLOSS REGIMEN A VERSION OF JOHNSON & JOHNSON'S WELLNESS PROGRAM THE FIVEYEAR AGREEMENT GIVES NUTRI/SYSTEM A WAY TO TAP INTO PREVENTIVE HEALTH CARE WHILE FOR JOHNSON & JOHNSON OF NEW BRUNSWICK NJ THE ARRANGEMENT OPENS UP A NEW CONSUMER MARKET FOR ITS LIVE FOR LIFE HEALTHPROMOTION PROGRAM JOHNSON & JOHNSON DEVISED THE SYSTEM 15 YEARS AGO TO HELP IMPROVE THE HEALTH AND LOWER COSTS OF HEALTH CARE FOR ITS OWN EMPLOYEES AND LATER PARLAYED IT INTO AN OVER10 MILLIONAYEAR BUSINESS TARGETED AT CORPORATE CLIENTS THE NEW AGREEMENT PRESENTS US WITH AN OPPORTUNITY TO TEST WHETHER THERE'S A WAY TO REACH A BROADER AUDIENCE A JOHNSON & JOHNSON SPOKESMAN SAID UNDER THE ARRANGEMENT NUTRI/SYSTEM'S CUSTOMERS AT BOTH COMPANY AND FRANCHISEEOWNED CENTERS WILL FILL OUT A QUESTIONNAIRE DEVISED BY JOHNSON & JOHNSON'S HEALTH MANAGEMENT UNIT THE ANSWERS WILL BE FED INTO A COMPUTER TO DETERMINE A HEALTHRISK PROFILE CLASSES ON TOPICS SUCH AS STRESS AND WEIGHT MANAGEMENT BASED ON JOHNSON & JOHNSON MATERIAL WILL AUGMENT NUTRI/SYSTEM'S MEAL PLANS THE COMPANIES DIDN'T DISCLOSE MANY FINANCIAL DETAILS JOSEPH DIBARTOLOMEO A NUTRI/SYSTEM SPOKESMAN SAID JOHNSON & JOHNSON EVENTUALLY WILL INSTALL A COMPUTER AND THE HEALTHPROFILE SOFTWARE IN EACH OF THE 800 OR SO NUTRI/SYSTEM CENTERS JOHNSON & JOHNSON WILL RECOVER ITS COSTS FROM THE SALE TO NUTRI/SYSTEM OF HEALTH PROMOTION MATERIALS SUCH AS BOOKS AND BROCHURES MR DIBARTOLOMEO SAID HE DOESN'T EXPECT NUTRI/SYSTEM'S FEES TO CHANGE SIGNIFICANTLY AFTER THE NEW SERVICES ARE INTRODUCED A ONEYEAR PROGRAM COSTS ABOUT 250 IN ADDITION TO ABOUT 55 TO 72 A WEEK FOR THE DIET MEALS THE PARTNERSHIP IS A REASONABLY GOOD FIT SAID DAVID CALKINS CHIEF OF GENERAL INTERNAL MEDICINE AT THE NEW ENGLAND DEACONESS HOSPITAL IN BOSTON DR CALKINS WHO HAD STUDIED THE LIVE FOR LIFE PROGRAM SAID THE NEW NUTRI/SYSTEM PRODUCT IS SIMILAR TO WEIGHTLOSS PROGRAMS OFFERED BY MANY HOSPITALS THE DIFFERENCE IS IN ITS NATIONAL SCALE DIETCENTER COMPANIES HAVE BEEN TINKERING WITH THEIR PROGRAMS TO CLIMB OUT OF A FIVEYEAR INDUSTRY SLUMP LAST YEAR THE BUSINESS SHRANK 5 TO 199 BILLION SAID JOHN LAROSA EDITOR OF DIET BUSINESS BULLETIN VALLEY STREAM NY JENNY CRAIG INC OF DEL MAR CALIF RECENTLY ALTERED ITS DIET PROGRAM TO EMPHASIZE WEIGHT MAINTENANCE JENNY CRAIG'S REVENUE FELL 11 IN THE FISCAL FIRST HALF ENDED DEC 31 WHILE NET INCOME DROPPED 46 TO 89 MILLION WEIGHT WATCHERS INTERNATIONAL INC A DIVISION OF PITTSBURGHBASED HJ HEINZ CO NOW OFFERS SIMPLIFIED MEAL PLANS AND STARTED AN ATHOME PROGRAM THAT INCLUDES AN 8999 KIT AND A TOLLFREE HELP LINE FOR CLIENTS WHO DON'T WANT TO GO TO WEIGHT WATCHERS' DIET CLASSES IN THE QUARTER ENDED OCT 27 ATTENDANCE AT WEIGHT WATCHERS' CLASSES WAS DOWN 10 FROM A YEAR EARLIER NUTRI/SYSTEM WAS THE MOST BADLY HURT OF THE BIG THREE WHICH INCLUDES WEIGHT WATCHERS AND JENNY CRAIG IN THE INDUSTRY LAST APRIL BANK CREDITORS SEIZED THE HEAVILY INDEBTED COMPANY'S ASSETS AND FORCED THE CLOSURE OF 283 COMPANYOWNED OUTLETS THE COMPANY EVENTUALLY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION LAST DECEMBER NUTRI/SYSTEM'S ASSETS WERE PURCHASED FOR 15 MILLION BY A CHICAGO INVESTOR GROUP LED BY MICHAEL HEISLEY NOW THE COMPANY'S CHAIRMAN OF THE 1200 OR SO NUTRI/SYSTEM OUTLETS ABOUT 800 REMAIN 9402280164 940228 CLINTON AIDES FLOAT PROPOSAL ON GATT PACT WAIVER OF LAW TO REDUCE DEFICIT MIGHT BE ASKED TO PAY FOR NEW ACCORD BY JEFFREY H BIRNBAUM AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNDER INTENSE BUDGET PRESSURE IS CONSIDERING SEEKING A WAIVER IN THE DEFICITREDUCTION LAW TO PAY FOR THE NEW GLOBAL TRADE PACT OFFICIALS HOWEVER BELIEVE THEY CAN'T TAKE THAT ROUTE FOR WELFARE REFORM WHITE HOUSE AIDES ARE FLOATING THE IDEA OF A BUDGET WAIVER FOR THE TRADE PACT NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BECAUSE IT WOULD COST THE GOVERNMENT AN ESTIMATED 11 BILLION TO 14 BILLION IN REDUCED TARIFFS OVER FIVE YEARS UNDER FEDERAL LAW ANY NEW LEGISLATION THAT WOULD WIDEN THE DEFICIT BY REDUCING TAX OR TARIFF REVENUE MUST BE ACCOMPANIED BY PROVISIONS FOR NEW REVENUES OR SPENDING CUTS BUT CONGRESS MAY VOTE TO WAIVE THIS REQUIREMENT OFFICIALS ARGUE THAT A WAIVER WOULD BE JUSTIFIED IN THE CASE OF GATT BECAUSE FUTURE REVENUE GAINS FROM INCREASED TRADE WOULD FAR EXCEED THE COST IN LOST TARIFFS ADMINISTRATION OFFICIALS HAVE NO INTENTION OF SEEKING A WAIVER FOR WELFARE OVERHAUL HOWEVER BECAUSE IT WOULD BE MUCH HARDER TO ARGUE THAT SUCH SAVINGS COULD BE ACHIEVED BOTH THE TRADE AND WELFARE ISSUES WERE DISCUSSED AT A RECENT MEETING IN THE ROOSEVELT ROOM OF THE WHITE HOUSE WHERE OFFICIALS ALSO CONFERRED ABOUT THE COST OF THE ADMINISTRATION'S AMBITIOUS HEALTHCARE PROPOSAL THEY DECIDED TO DISCUSS THE BUDGETWAIVER IDEA WITH CONGRESSIONAL LEADERS US OFFICIALS SAID CLINTON ADVISERS AREN'T SURE CONGRESS WOULD APPROVE A WAIVER THOUGH PUBLICLY THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET IS DISTANCING ITSELF FROM THE EFFORT A SPOKESMAN AT THE BUDGET OFFICE INSISTED WE ARE NOT ASKING OR URGING THAT THERE BE ANY KIND OF WAIVER FOR GATT THE MEETINGS THAT ARE GOING TO BE HELD ARE GOING TO BE STRICTLY FOR DECIDING HOW TO PAY FOR GATT NOT WHETHER TO PAY FOR GATT MEANWHILE WORRY ABOUT COST HAS LED THE ADMINISTRATION TO PARE BACK THE EVOLVING WELFAREREFORM PROGRAM BY BILLIONS OF DOLLARS AMONG THE PROPOSALS BEING DISCUSSED FOR THE PROGRAM ARE LIMITING SOCIAL SECURITY DISABILITY PAYMENTS FOR ALCOHOLICS AND DRUG ADDICTS REDUCING FRAUD IN THE EARNEDINCOME TAX CREDIT PROGRAM FOR THE WORKING POOR AND LIMITING GRANTS TO STATES FOR WELFARE RECIPIENTS THE WELFARE PLAN WOULD FORCE WELFARE RECIPIENTS TO WORK AFTER TWO YEARS IN THE PROGRAM DURING THE TWO YEARS RECIPIENTS WOULD RECEIVE CONSIDERABLE JOBTRAINING AND OTHER SERVICES WHITE HOUSE AIDES ARE CONSIDERING APPLYING THE TWOYEAR LIMIT INITIALLY TO INDIVIDUALS 25 YEARS OLD AND YOUNGER THAT WOULD BRING DOWN THE COST TO AS LITTLE AS 4 BILLION OVER FIVE YEARS AT LEAST 3 BILLION LESS THAN A MORE AMBITIOUS PROPOSAL SUGGESTED EARLIER OFFICIALS SAY THE FISCAL ISSUE IS THE ONLY SIGNIFICANT OBSTACLE TO THE WIDELY POPULAR TRADE PACT WHICH WAS REACHED IN DECEMBER IF A BUDGET WAIVER CAN'T BE OBTAINED ANOTHER MORE DIFFICULT POSSIBILITY WOULD BE TO ASK LAWMAKERS TO FIND OFFSETTING SPENDING CUTS THE ADMINISTRATION HAS TO SETTLE THIS ISSUE SOON IT'S PLANNING TO INTRODUCE THE TRADE PACT TO CONGRESS AFTER IT IS SIGNED IN MARRAKECH MOROCCO ON APRIL 15 IN THE MEANTIME WHITE HOUSE LOBBYISTS HAVE BEEN TALKING TO KEY MEMBERS OF THE SENATE ABOUT USING THE ANNUAL BUDGET RESOLUTION TO ALTER SENATE RULES SO THAT IT WOULD TAKE ONLY 50 VOTES INSTEAD OF THE CURRENT 60VOTE REQUIREMENT TO WAIVE THE BUDGETLAW RESTRICTIONS ON DEFICIT SPENDING SENATE REPUBLICANS ARE RESISTING THE WAIVER BUT THERE IS A MOVEMENT AMONG REPUBLICANS IN THE HOUSE WHERE ONLY A SIMPLE MAJORITY VOTE IS NEEDED TO WAIVE THE LAW FOR THE GATT AGREEMENT ADMINISTRATION OFFICIALS HOPE REPUBLICANS WILL SET ASIDE THEIR OWN FISCAL CONSERVATISM FOR THE CAUSE OF OPEN TRADE WHICH THEY TRADITIONALLY HAVE ADVOCATED IN ADDITION ADMINISTRATION OFFICIALS HOPE REPUBLICANS WILL ACKNOWLEDGE THAT IT WOULD BE HARD TO FIND AS MUCH AS 14 BILLION IN SPENDING CUTS OR TAX INCREASES IN AN ELECTION YEAR THE WHITE HOUSE BUDGET OFFICE ESTIMATES THAT GATT 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 LEAVING A 108 BILLION HOLE TO FILL THE REVENUE ISSUE AROSE LAST YEAR DURING THE ADMINISTRATION'S CAMPAIGN TO WIN CONGRESSIONAL APPROVAL FOR THE NORTH AMERICAN FREE TRADE AGREEMENT TO OFFSET THE LOSS OF DUTIES FROM NAFTA THE ADMINISTRATION PROPOSED RAISING TAXES ON AIR AND SEA PASSENGER TRAVEL AS WELL AS CUSTOMS FEES COLLECTED ON RAILROAD CARS AND TRUCKS THAT CROSS THE US BORDER WHEN CRUCIAL REPUBLICAN LAWMAKERS IN THE HOUSE THREATENED TO VOTE AGAINST THE PACT BECAUSE OF THOSE TAX PROPOSALS THE ADMINISTRATION SCALED THEM BACK THE HOUSE CLEARED THE PACT NOV 15 ALTHOUGH ADMINISTRATION OFFICIALS CONSIDERED SEEKING A BUDGET WAIVER FOR NAFTA THEY DIDN'T BECAUSE THAT TRADE PACT'S SURVIVAL WAS SO PRECARIOUS THE GATT AGREEMENT HAS MUCH WIDER SUPPORT 9402280163 940228 FIGHTING CITY HALL IN A TUSSLE OVER TRASH 2 HAULERS COULD WIN RULING COSTLY TO TOWNS THE FRANCOS OF NEW JERSEY ASK HIGH COURT TO CURB LOCAL CONTROL OF GARBAGE SOCIALIZING WITH GANGSTERS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL HILLSDALE NJ MUNICIPAL SANITATION CHIEFS ACROSS THE COUNTRY FACE A FRIGHTENING PROSPECT A SUPREME COURT DECISION EXPECTED SOON THAT COULD STRIP AWAY THEIR CONTROL OVER TRASH THREATENING BILLIONS OF DOLLARS OF PUBLIC INVESTMENT IN DUMPS AND INCINERATORS THE LEGAL CHALLENGE DOESN'T COME FROM A NATIONAL WASTECONTROL COMPANY BUT FROM TWO LOCAL GARBAGE HAULERS WHO ARE HOPING FOR SWEET REVENGE FOR 15 YEARS STATE AND LOCAL OFFICIALS HAVE TRIED TO RUN SALVATORE AND CARMINE FRANCO OUT OF THE GARBAGE BUSINESS IN PART BECAUSE THEY ALLEGE THE FRANCOS HAVE MAFIA TIES NEW JERSEY WANTS TO BAR THE TWO BROTHERS' GROWN CHILDREN TOO AND AUTHORITIES IN THE STATE ARE PREPARING A SWEEPING CRIMINAL CASE HOPING TO SEIZE MUCH OF THE FAMILY'S WEALTH AND SEND THE ELDER FRANCOS TO JAIL THE SUPREME COURT CASE RUNS ALONG A SEPARATE LEGAL PATH AND CAN'T STOP THE ANTICIPATED INDICTMENTS BUT IT DOES GIVE THE FRANCOS A CHANCE TO GET EVEN IT ALSO UNDERSCORES THE INCREASINGLY RANCOROUS BATTLES BETWEEN MUNICIPALITIES AND HAULERS FOR CONTROL OF THE 25 BILLIONAYEAR TRASH INDUSTRY AT STAKE ARE MANY MUNICIPAL BUDGETS MORE THAN 10 BILLION IN BONDS ISSUED TO FINANCE WASTE FACILITIES AND ULTIMATELY THE GARBAGE FEES PAID BY MILLIONS OF HOUSEHOLDS AND BUSINESSES THE SATISFACTION I'M GOING TO GET SAL FRANCO THE MORE DIPLOMATIC OF THE BROTHERS SAYS OF THE POSSIBILITY OF A HIGH COURT DECISION IN HIS FAVOR IS THAT I KICKED THEIR A P THE SURPRISING STORY STRETCHES FROM THREE UNSOLVED MURDERS TO A TRASHSTREWN EXPRESSWAY TO THE HALLS OF CONGRESS A MUNICIPAL ROLE IN TRASH INITIALLY MADE SENSE MANY PLACES HAD BEEN GOUGED BY PRIVATE HAULERS FOUND TO HAVE ENGAGED IN COLLUSIVE PRICEFIXING AND BIDRIGGING SCHEMES DURING THE 1970S AND 1980S PUBLIC OFFICIALS WERE FURTHER ALARMED BY THE TENDENCY OF SOME PRIVATELY OPERATED DUMPS TO TURN INTO TOXIC SEWERS BUT MANY CITIES AND COUNTIES MAY HAVE GONE TOO FAR THEY INVESTED HEAVILY IN DUMPS INCINERATORS AND GARBAGETRANSFER STATIONS AND THEN LEGISLATED FLOW CONTROL WHICH ALLOWS THEM TO COMMANDEER ALL THE TRASH WITHIN THEIR BORDERS AND DIRECT IT TO A FAVORED DISPOSAL SITE ONCE WIELDING MONOPOLY POWER MANY MUNICIPALITIES JACKED UP THEIR DUMPING FEES TO PAY FOR OTHER SERVICES SUCH AS RECYCLING CLEANING UP OLD DUMPS AND SALARIES FOR SANITATION OFFICIALS HAULERS FUMED THEN ALTHOUGH OFFICIALS HAD PREDICTED A SHORTAGE OF DUMP SPACE A GLUT DEVELOPED AND MARKET FORCES BEGAN ERODING PUBLIC CONTROL HAULERS CHEATED ON FLOW CONTROL SNEAKING TRASH OFF TO CHEAPER PRIVATE OUTLETS AND SOME LIKE THE FRANCOS SUED THEIR CASE C&A CARBONE INC NAMED FOR SOME PARTNERS VS CLARKSTOWN NY INVOLVES A TRANSFER STATION JUST OVER THE NEW JERSEY BORDER INTO NEW YORK WHERE TRUCKS WERE UNLOADED AND WASTE WAS REPACKED INTO BIG RIGS FOR TRIPS TO DUMPS IN PENNSYLVANIA AND BEYOND AUTHORITIES IN NEW JERSEY AND NEW YORK SUSPECTING THAT THE FRANCOS WERE DIVERTING TRASH FROM MUNICIPALITIES IN BOTH STATES IN VIOLATION OF FLOWCONTROL LAWS MOUNTED AN IMPRESSIVE INVESTIGATION HELICOPTER SURVEILLANCE TROOPERS PULLING OVER BIG RIGS ON INTERSTATE HIGHWAYS AND AN ARMED RAID BY MORE THAN 30 LAWENFORCEMENT OFFICIALS IN JUNE 1991 TO SEIZE RECORDS OFFICIALS MAY NOW WISH THEY HADN'T BOTHERED MANY EXPERTS EXPECT THE SUPREME COURT TO RULE FOR THE FRANCOS HOLDING THAT FLOW CONTROL ILLEGALLY INTERFERES WITH INTERSTATE COMMERCE IF SO MUNICIPAL SITES COULD GET TOO LITTLE TRASH AND DISPOSAL PRICES COULD PLUNGE IN SOME AREAS THAT COULD TRIGGER A PRICE WAR AMONG HAULERS TO THE BENEFIT OF BUSINESSES AND CONSUMERS MOST VULNERABLE IS THE FRANCOS' HOME TURF NEW JERSEY HAS NEARLY 2 BILLION INVESTED IN PUBLIC TRASH FACILITIES SOME COUNTIES CHARGE 100 A TON AND MORE TO DUMP WHILE 50ATON DISPOSAL ABOUNDS ACROSS THE DELAWARE RIVER IN PENNSYLVANIA FEARING DEFEAT LOCALGOVERNMENT GROUPS ALREADY ARE LOBBYING CONGRESS TO PRESERVE SOME SORT OF FLOW CONTROL AND PROTECT PUBLICSECTOR INVESTMENTS AND BONDHOLDERS THE FRANCOS ACKNOWLEDGED AS TALENTED ENTREPRENEURS EVEN BY SOME GOVERNMENT CRITICS WOULD PROBABLY PROSPER IN NOHOLDSBARRED COMPETITION WITH ADDITIONAL TRANSFER STATIONS HERE IN BERGEN COUNTY NJ AND IN PHILADELPHIA AND A SIZABLE HAULING OPERATION THE FAMILY BUSINESS HAS ANNUAL REVENUE OF 50 MILLION TO 100 MILLION IT IS ONE OF THE LARGEST HAULERS IN NEW JERSEY A STATE WITH A FRAGMENTED MARKET THAT WMX TECHNOLOGIES INC AND BROWNINGFERRIS INDUSTRIES INC WHICH OPERATE NATIONALLY HAVE YET TO DOMINATE ENTERING THE NEW JERSEY HAULING BUSINESS IN 1963 THE FRANCOS SHOWED AN EARLY FLAIR FOR ORGANIZATION IN 1976 CARMINE FRANCO BECAME PRESIDENT OF A HAULERS' GROUP THE TRADE WASTE ASSOCIATION THAT LAWENFORCEMENT OFFICIALS HAVE FREQUENTLY ALLEGED BROUGHT TO NEW JERSEY A NEW YORK CITYSTYLE PRICEFIXING SYSTEM WHAT SET THAT SCHEME IN MOTION THE NEW JERSEY BOARD OF PUBLIC UTILITIES CONCLUDED AFTER HEARINGS WAS MR FRANCO'S BOLD MOVE IN SETTING JULY 1 1977 AS THE CUTOFF DATE FOR COMPETITION CUSTOMERS SWIPED FROM OTHER HAULERS BEFORE THEN COULD BE KEPT BUT AFTER THAT DATE A HAULER'S ACCOUNTS COULDN'T BE TOUCHED SUBDUING COMPETITIVE INSTINCTS PROVED DIFFICULT ALFRED DINARDI A NEW JERSEY HAULER WHO TOOK CUSTOMERS FROM RIVALS WAS SHOT TO DEATH IN A NEW YORK CITY PARKING GARAGE IN JUNE 1976 GABRIEL SAN FELICE ANOTHER HAULER WHO BID ON AND TOOK A RIVAL'S ACCOUNT WAS SHOT DEAD IN MAY 1978 WHILE DROPPING A LOAD OF GARBAGE AT A DUMP AND CRESCENT ROSELLE A HAULER WHO HAD LOST BUSINESS TO BOTH VICTIMS WAS HIMSELF MURDERED IN DECEMBER 1980 OUTSIDE HIS OFFICE ALL THREE KILLINGS REMAIN UNSOLVED ANOTHER HAULER EUGENE SORGINE UNDERBID THE FRANCOS IN THE 1970S ON A JOB TO OPERATE A DUMP HE LATER SOLD HIS BUSINESS TO THEM ABOUT THE SAME TIME A FIRE BROKE OUT AT HIS HOUSE NO ONE HAS BEEN CHARGED SO HIS HOUSE BURNS SAL FRANCO SAYS DENYING ANY INVOLVEMENT WE GET BLAMED FOR IT THREE GUYS GET KILLED POLICE TRIED LIKE HELL TO ATTRIBUTE THAT TO US DURING A DAYLONG INTERVIEW WHILE TOURING THE TRASH FACILITIES OF BERGEN COUNTY AND CLARKSTOWN IN HIS MERCEDES SEDAN THE 55YEAROLD MR FRANCO SAYS HE AND HIS BROTHER AREN'T MAFIACONNECTED THOUGH HE ACKNOWLEDGES THEY KNOW A FEW MOBSTERS SOCIALLY TINO FIUMARA IDENTIFIED BY LAWENFORCEMENT OFFICIALS AS A GENOVESE CRIMEFAMILY SOLDIER WAS A FRIEND OF OURS SAL FRANCO SAYS MR FIUMARA WAS RELEASED IN EARLY FEBRUARY AFTER 14 YEARS IN PRISON ON RACKETEERING AND EXTORTION CONVICTIONS SAL FRANCO SAYS HE HAS ALSO SOCIALIZED WITH SALVATORE AVELLINO THE LONG ISLAND TRASH CHIEF FOR THE LUCCHESE CRIME FAMILY MR AVELLINO PLEADED GUILTY IN MIDFEBRUARY TO RACKETEERING CHARGES THAT INCLUDE EXTORTION AND CONSPIRACY IN THE MURDER OF TWO HAULERS WHO DEFIED MAFIA PRICE FIXING CARMINE FRANCO HIMSELF NOW 58 PLEADED GUILTY TO A MISDEMEANOR IN THE 1983 TRADE WASTE ASSOCIATION PRICEFIXING CASE IN WHICH NEW JERSEY CHARGES AGAINST ORGANIZEDCRIME FIGURES INCLUDING MR FIUMARA WERE DROPPED THE JUDGE WHO IN 1983 SENTENCED MR FRANCO TO 180 DAYS SERVED ON WORK RELEASE SAID EVIDENCE OF HIS MOB TIES IS ALMOST SOLELY BY WAY OF INNUENDO HEARSAY AND TRIPLE HEARSAY WHILE THE FRANCOS HAVE NEVER BEEN ACCUSED OF A VIOLENT CRIME OR EXTORTION THE MOB TAGASSERTED BY NEW JERSEY AND OTHER STATES' LAWENFORCEMENT OFFICIALS AND WIDELY PUBLICIZED HAS STUCK THE NEWSPAPERS DO A HELL OF A JOB SAL FRANCO SAYS MY CUSTOMERS DON'T WANT TO LEAVE THEY'RE AFRAID EVEN OUR LAWYERS THINK WELL MAYBE AFTER CARMINE FRANCO'S GUILTY PLEA THE FRANCOS AND NEW JERSEY OFFICIALS SETTLED INTO TRENCH WARFARE THE STATE BUMPED A 4000 FINE UP TO 22 MILLION THOUGH A STATE APPELLATE COURT REVERSED THAT THE STATE LITIGATED UNTIL 1987 AND FINALLY SUCCEEDED IN OUSTING CARMINE FRANCO FROM THE NEW JERSEY TRASH BUSINESS HE NOW RUNS THE PHILADELPHIA OPERATION ALONG THE WAY THE FRANCOS FRUSTRATED PUBLIC OFFICIALS' BROADER GOAL OF CONTROLLING TRASH AND THUS ESTABLISHED THEMSELVES AS A DEFIANT PRESENCE IN THE LATE 1980S BERGEN COUNTY FOR INSTANCE BUILT THE NATION'S BIGGEST TRANSFER STATION ABOUT FOUR TIMES THE SIZE OF A FOOTBALL FIELD AND CAPABLE OF HANDLING ALL THE COUNTY'S TRASH THAT IGNORED HOWEVER THE FACT THAT PRIVATE TRANSFER STATIONS INCLUDING ONE OWNED BY THE FRANCOS ALREADY HAD AMPLE CAPACITY THE COUNTY TRIED USING FLOW CONTROL TO FORCE TRASH INTO ITS FACILITY BUT IN A TEST OF WILLS WITH HAULERS LOST ONE MORNING SAL FRANCO DROPS BY THE COUNTY PLANT AND FINDS IT QUIET A TRICKLE OF NO MORE THAN 400 TONS OF TRASH A DAY ARRIVES AT THE FACILITY THOUGH IT IS DESIGNED FOR UP TO 3750 TONS DAILY ALBERT ADCOCK SECURITY CHIEF FOR THE COUNTY UTILITIES AUTHORITY WELCOMES MR FRANCO AND THE TWO MEN COMMISERATE OVER THE RECENT DEMISE OF A FAVORITE HACKENSACK SALOON NATURE CALLS MR ADCOCK OFFERS HIS WASHROOM TO MR FRANCO AND ALONE WITH A REPORTER VOLUNTEERS ALL THAT STUFF YOU HEAR ABOUT SAL IT'S BULL S IN THE BACKGROUND A BULLDOZER SLOWLY PUSHES A TRASH PILE AROUND THE PLANT FLOOR IN CONTRAST THE FRANCOS' SALCAR TRANSFER PLANT IN HILLSDALE IS A MODEL OF EFFICIENCY WITH TRUCKS LINED UP TO EMPTY TRASH ONTO A TINY TIPPING FLOOR WHERE A GIANT COMPACTOR IMMEDIATELY RELOADS THE WASTE INTO BIG RIGS INDEED STATE AND LOCAL OFFICIALS CHARGE THAT THE SITE HAS BEEN TOO BUSY EXCEEDING ITS DAILY PERMITTED LIMIT AND IN EFFECT SPREADING TO ADJOINING FRANCO PROPERTY THAT LACKS A PROPER PERMIT THE STATE HAS ALSO GONE AFTER THE FRANCOS FOR HAVING TOO MANY HAULING PERMITS WHICH MAKES IT DIFFICULT TO PUT THEM OUT OF BUSINESS IF ONE HAULING PERMIT WERE REVOKED STATE OFFICIALS COMPLAIN THE FRANCOS COULD SHIFT CUSTOMERS TO ANOTHER HAULER SAL FRANCO WAS BANNED FROM THE INDUSTRY IN NEW JERSEY ADMINISTRATIVE PROCEEDINGS INVOLVING MULTIPLE HAULING PERMITS AND THE STATE LATER CHARGED HIM WITH CONTEMPT FOR ALLEGEDLY CONTINUING TO RUN THE BUSINESS THE STATE HAS ALSO SOUGHT TO BAR SIX GROWN SONS AND DAUGHTERS OF CARMINE AND SAL FRANCO WHO ACCORDING TO THE FRANCOS NOW RUN THE BUSINESS NEARLY ALL THESE DISPUTES IN WHICH THE STATE SEEKS MILLIONS OF DOLLARS IN PENALTIES HAVE BEEN APPEALED BY THE FRANCOS FROM ADMINISTRATIVE PROCEEDINGS TO STATE COURTS THE FRANCOS DENY WRONGDOING STEVEN J MADONNA THE STATE ENVIRONMENTAL PROSECUTOR WHO HAS OVERSEEN MUCH OF THE CIVIL LITIGATION SAYS HE WANTS THE FRANCOS OUT OF THE TRASH BUSINESS WE'RE WORKING TOWARD ENDING THEIR INVOLVEMENT HE SAYS OF THEIR ALLEGED BUSINESS TIES WITH THE MOB MR MADONNA SAYS I DON'T THINK ANYBODY CANNOT TAKE INTO ACCOUNT THAT REALITY HE MENTIONS MURDER VIOLENCE AND ARSON I'M NOT MAKING A LEAP THAT THAT IS THE FRANCOS BUT IT WOULD BE UNREASONABLE TO DISREGARD THAT IN RECENT MONTHS MEANWHILE SAL AND CARMINE FRANCO AND SOME OF THEIR GROWN SONS HAVE RECEIVED SOCALLED TARGET LETTERS FROM THE STATE ATTORNEY GENERAL SAYING THEY COULD SOON BE INDICTED ON CRIMINAL CHARGES A STATE OFFICIAL CONFIRMS THAT AN INDICTMENT IS EXPECTED SOON BUT WON'T DISCUSS THE CHARGES SAL FRANCO SAYS THE CHARGES WOULD INCLUDE THEFT FOR DIVERTING TRASH FROM BERGEN COUNTY'S FLOWCONTROL SYSTEM AND CONTEMPT FOR HIS STAYING IN THE BUSINESS HE EXPECTS THE STATE TO SEEK PRISON TERMS FOR HIM AND CARMINE AND FINANCIAL PENALTIES AS HIGH AS 20 MILLION THEY'RE GOING TO COME UP WITH A BIG ONE I GUARANTEE YOU THE INCREASING NASTINESS WITH NEW JERSEY OFFICIALS FOLLOWED THE FRANCOS TO THEIR NEW YORK STATE OPERATION WHERE SAL IS AN OWNER BUT CARMINE NEVER WAS THOUGH HE HELPED IN THE BUSINESS CLARKSTOWN ALSO HAS FLOW CONTROL REQUIRING HAULERS TO DUMP AT A TOWN TRANSFER STATION FOR 81 A TON THE FRANCOS WERE DOING BUSINESS NEARBY AT 70 CLARKSTOWN LOSING VOLUME WENT LOOKING FOR THE REASON THE TOWN'S POLICE STAKED OUT THE FRANCOS' BUSINESS FIRST TRYING TO HIDE BESIDE THE DEER HEAD INN A TAVERN UP THE ROAD WE THOUGHT IT WAS A SPEED TRAP SAYS THE BAR'S OWNER KEN BRENNAN WHO SENT A BARTENDER OUT TO ASK THE POLICE IF THEY WANTED ANYTHING POLICE SWITCHED TO HELICOPTER FLYOVERS REAL CLOAKANDDAGGER STUFF SAL FRANCO SAYS THE BREAK IN THE CASE CAME IN MARCH 1991 WHEN AN INDIANA TRUCKER CARL E DRAKE LOADED UP WITH TRASH AT THE FRANCO SITE GOT LOST AND TURNED ONTO THE PALISADES INTERSTATE PARKWAY WHICH BARS TRUCKS HIS TRAILER RAMMED THE FIRST BRIDGE IT CAME TO SPILLING THE TRASH ON THE BRIDGE OVERHEAD CARMINE FRANCO WAS SOON SPOTTED TRYING TO DIRECT A HURRIED CLEANUP ACCORDING TO PAUL D'ALESSANDRO A CLARKSTOWN DETECTIVE TROOPERS AND POLICE STARTED PAWING THROUGH THE MESS AND SAY THEY FOUND WHAT THEY WERE LOOKING FOR CLARKSTOWN TRASH BY LOOKING AT ADDRESSES ON THE JUNK MAIL THE FRANCOS SAY THAT THE TRASH WAS FROM ELSEWHERE AND THAT LOCAL STUFF MUST HAVE GOT MIXED IN WHEN POLICE IMPOUNDED THE LOAD AND TOOK IT BACK TO THE CLARKSTOWN TRANSFER STATION FOR A CLOSER LOOK IN THE FOLLOWING WEEKS POLICE PULLED OVER AND CHECKED THE LOADS OF MORE TRUCKERS LEAVING THE FRANCO OPERATION THEN IN JUNE 1991 POLICE PROSECUTORS AND ENVIRONMENTAL REGULATORS FROM NEW YORK AND NEW JERSEY GUNS DRAWN DESCENDED ON THE SITE THEY OPENED THE DOOR AND POINTED THEIR GUNS INTO THE OFFICE SAYS LINDA FRANCO SAL'S DAUGHTER WHO WAS WORKING THERE AT THE TIME SHE WAS FRIGHTENED FOR THAT MR FRANCO SAYS CLARKSTOWN CAN EXPECT AN ESPECIALLY SPIRITED COMPETITIVE EFFORT FROM THE FRANCOS SHOULD THE SUPREME COURT TOSS OUT FLOW CONTROL I'LL NEVER FORGIVE WHAT THEY DID TO MY DAUGHTER HE ADDS THE FRANCOS HAVEN'T FOUGHT THIS BATTLE ENTIRELY ON THEIR OWN MORE THAN 100 NEW JERSEY AND NEW YORK HAULERS PAID 1000 APIECE LAST FALL TO ATTEND A LEGALDEFENSE FUNDRAISER IN MANHATTAN AND THE FRANCO CASE HAS BECOME A DARLING OF THE FREEENTERPRISE SET FRIENDOFTHECOURT ARGUMENTS POURED IN FROM AMONG OTHERS DETROIT'S BIG THREE AUTO MAKERS THE NATIONAL ASSOCIATION OF MANUFACTURERS AND THE CHEMICAL MANUFACTURERS ASSOCIATION BIG BUSINESS ALSO DOESN'T LIKE TO BE TOLD WHERE AND AT WHAT PRICE TO DUMP ITS TRASH HELL NO WE WON'T FLOW SAYS BRUCE PARKER A WASHINGTON LAWYER FOR A HAULERS' GROUP ON THE OTHER SIDE MUNICIPAL GOVERNMENTS WEIGHED IN WARNING ABOUT BOND DEFAULTS AND ENVIRONMENTAL RISKS IF HAULERS PREVAIL WE'RE TALKING DISASTER SAYS H LANIER HICKMAN HEAD OF A MUNICIPAL TRASH OFFICIALS' GROUP AFTER ORAL ARGUMENTS BEFORE THE SUPREME COURT LAST DECEMBER DETECTIVE D'ALESSANDRO WALKED UP TO SAL FRANCO AND ASKED WHO WOULD'VE THOUGHT IT WOULD WIND UP HERE THE HAULER REPLIED YOU UNDERESTIMATED THE FRANCOS 9402280161 940228 AMERICA WEST SPLITS WITH CREDITORS IN ACCEPTING BONDERMANCOULTER BID BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL SEEKING CAPITAL TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS AMERICA WEST AIRLINES SELECTED A 220 MILLION BID LED BY DAVID BONDERMAN AND JAMES COULTER FORT WORTH TEXAS INVESTORS WHO ARE MAJOR SHAREHOLDERS IN CONTINENTAL AIRLINES BUT AMERICA WEST'S UNANIMOUS BOARD DECISION DREW FIRE FROM THE COMPANY'S UNSECURED CREDITORS COMMITTEE WHOSE SUPPORT IS CRITICAL FOR A REORGANIZATION PLAN TO BE APPROVED THE COMMITTEE INSTEAD THREW ITS SUPPORT BEHIND A RIVAL BID LED BY NEW YORK MONEY MANAGER MICHAEL STEINHARDT A BATTLE NOW LOOMS BETWEEN THE TWO INVESTMENT GROUPS THE SPLIT BETWEEN THE AIRLINE'S BOARD AND ITS CREDITORS REPRESENTS THE LATEST DIVISIONS INSIDE A COMPANY TORN APART OVER THE PAST YEAR BY BITTER MANAGEMENT FEUDS AT STAKE IS CONTROL OF THE NATION'S NINTHLARGEST AIRLINE WHOSE LOW COSTS MODERN FLEET AND RESURGENT PROFITABILITY HAVE MADE IT AN INDUSTRY PLUM AMERICA WEST IS CLEARLY COVETED BY MESSRS BONDERMAN AND COULTER PRINCIPALS IN AIR PARTNERS LP WHICH HELPED CONTINENTAL EMERGE FROM BANKRUPTCY COURT LAST YEAR AND NOW HAS A 28 STAKE IN THE AIRLINE THE TWO MEN HOPE TO FORGE AN ALLIANCE BETWEEN CONTINENTAL AND AMERICA WEST THAT INCLUDES A COMBINED FREQUENTFLIER PROGRAM JOINT MARKETING AND SALES INITIATIVES AND THE SHARING OF FLIGHT CODES IN THE COMPUTER RESERVATION SYSTEM THE INVESTMENT GROUP NAMED AMWEST PARTNERS LP ALSO INCLUDES FIDELITY INVESTMENTS INC THE NATION'S LARGEST MUTUAL FUND COMPANY MESA AIRLINES A FARMINGTON NM COMMUTER CARRIER AND CONTINENTAL ITSELF THE GROUP HAS OFFERED TO EXCHANGE 100 MILLION IN UNSECURED DEBT AND 120 MILLION IN NEW EQUITY IN RETURN FOR A 375 INTEREST OF THE REORGANIZED AIRLINE UNSECURED CREDITORS WOULD RECEIVE A 45 INTEREST AND IF THAT INTEREST REPRESENTS FULL RECOVERY ON THEIR CLAIMS EXISTING SHAREHOLDERS WOULD RECEIVE 10 A SECURED CREDITOR LEASING GIANT GPA GROUP PLC OF IRELAND WOULD RECEIVE A 75 STAKE IN EXCHANGE FOR UNSPECIFIED CONCESSIONS AMERICA WEST CHAIRMAN WILLIAM A FRANKE WAS OPTIMISTIC THAT THE AMWEST BID WOULD SUCCEED AND THAT THE COMPANY WHICH HAS BEEN IN BANKRUPTCY COURT FOR 2 1/2 YEARS WOULD EMERGE FROM CHAPTER 11 BY SEPTEMBER OR OCTOBER STEINHARDT'S PLAN AMERICA WEST SNUBBED MR STEINHARDT WHO PROPOSED TO PAY AMERICA WEST 200 MILLION IN EQUITY IN EXCHANGE FOR 49 OF THE REORGANIZED COMPANY'S COMMON STOCK THE REMAINING INTERESTS WOULD GO TO CREDITORS BOTH INVESTMENT GROUPS SAID THEY HAVE MADE THE SUPERIOR BID MR STEINHARDT'S REPRESENTATIVES SAY THAT HIS OFFER VALUES AMERICA WEST'S TOTAL EQUITY AT 408 MILLION COMPARED WITH THE 320 MILLION VALUATION BY AMWEST THEY ALSO SAY THAT THEIR BID DOESN'T SADDLE THE AIRLINE WITH 100 MILLION OF ADDITIONAL DEBT BUT AMWEST'S ADVOCATES SAID THEIR OFFER DELIVERS 20 MILLION ADDITIONAL CASH UPFRONT AND PROMISES OPERATIONAL BENEFITS WITH CONTINENTAL UNLIKE AMWEST WHICH SAID IT WOULD KEEP MANAGEMENT IN PLACE MR STEINHARDT PLANNED TO MAKE CHANGES AT THE TOP PERHAPS BRINGING BACK MICHAEL J CONWAY THE CARRIER'S OUSTED CHIEF EXECUTIVE OFFICER WHO LOST HIS BATTLE WITH MR FRANKE FOR CONTROL OF THE AIRLINE ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MR CONWAY AND A SPOKESMAN FOR MR STEINHARDT DECLINED TO COMMENT MR FRANKE DECLINED TO COMPARE THE TWO BIDS CITING CONFIDENTIALITY AGREEMENTS BUT SAID THAT MR BONDERMAN BROUGHT OBVIOUS SYNERGIES WITH CONTINENTAL AMERICA WEST WILL NOW PREPARE A REORGANIZATION PLAN BACKED BY AMWEST'S MONEY AND SUBMIT IT TO THE BANKRUPTCY JUDGE THE UNSECURED CREDITORS COMMITTEE IS CONSIDERING FILING ITS OWN PLAN BACKED BY MR STEINHARDT ACCORDING TO THE COMMITTEE'S FINANCIAL ADVISERS BLACKSTONE GROUP OF NEW YORK 9402280160 940228 BANKINSURER MERGER IS WORKING WELL ING OF NETHERLANDS PROSPERS WITH AGGRESSIVE POLICY BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL AMSTERDAM AAD JACOBS CHIEF EXECUTIVE OFFICER OF INTERNATIONALE NEDERLANDEN GROUP SETS CLEAR TARGETS FOR HIS MANAGERS IF YOU WANT TO REMAIN A MEMBER OF THIS GROUP YOU HAVE TO ACHIEVE TWO THINGS 10 GROWTH IN EARNINGS PER YEAR AND A RETURN ON SHAREHOLDERS' EQUITY OF 11 HE STATES THE PENALTY FOR FAILURE IN 1993 WE SOLD TWO OPERATIONS THAT WERE NOT PROFITABLE ENOUGH SAYS MR JACOBS A QUIETSPOKEN 57YEAROLD VETERAN OF THE DUTCH INSURANCE BUSINESS PROBABLY IN 1994 WE WILL SELL MORE BORN OUT OF THE MERGER IN 1990 OF THE NETHERLANDS' LARGEST INSURANCE COMPANY NATIONALENEDERLANDEN NV AND THE THIRDLARGEST BANKING GROUP NMB POSTBANK ITSELF THE PRODUCT OF A 1989 MERGER ING IS ONE OF THE WORLD'S MOST PROMINENT EXAMPLES OF BANKINSURANCE OR ALLFINANZ THE IDEA IS SIMPLE BANKS BECAUSE OF THEIR EXISTING RELATIONSHIPS WITH CLIENTS ARE WELLPLACED TO SELL INSURANCE PRODUCTS PARTICULARLY SAVINGS PRODUCTS LIKE LIFE INSURANCE MELD THIS IN ING'S CASE WITH AN EXPANSIONARY DRIVE THAT HAS TAKEN BOTH ARMS OF THE COMPANY INTO CENTRAL AND EASTERN EUROPE ASIA AND LATIN AMERICA AND YOU HAVE A SPICY COCKTAIL THOUGH IT'S TOO EARLY TO SAY HOW SUCCESSFUL IT WILL BE ING'S ADVENTUROUS APPROACH COMBINED WITH ITS HARDNOSED BUSINESS ATTITUDES AND ATTENTION TO FINANCIAL DETAIL IS WINNING PLAUDITS FROM INVESTMENT ANALYSTS THEY'RE MOVING IN EXACTLY THE RIGHT DIRECTION SAID FOKKO TUIN AN ANALYST AT KEMPEN & CO IN AMSTERDAM THERE ARE DEFINITE SIGNS THAT THE COMBINATION OF AN INSURANCE COMPANY AND A BANK CREATES VALUE SAID RICHARD URWICK OF FOXPITT KELTON IN LONDON AS A GROUP ING BROADLY MEETS MR JACOBS'S CRITERIA FOR THE FIRST NINE MONTHS OF 1993 IT REPORTED NET PROFIT UP 97 TO 14 BILLION GUILDERS 7253 MILLION WITH EARNINGS ALMOST EVENLY DIVIDED BETWEEN INSURANCE AND BANKING FOR THE WHOLE OF 1993 ANALYSTS ARE ESTIMATING NET PROFIT OF MORE THAN TWO BILLION GUILDERS AGAINST A RESTATED 18 BILLION GUILDERS IN 1992 GIVING A RETURN ON SHAREHOLDERS' EQUITY OF MORE THAN 11 TIM DAWSON OF LEHMAN BROS SECURITIES IN LONDON IS FORECASTING NET PROFIT OF 23 BILLION GUILDERS THIS YEAR AND 25 BILLION IN 1995 THEY SHOULD BE ABLE TO ACHIEVE SOMETHING LIKE 10 EARNINGS GROWTH OVER THE NEXT FEW YEARS HE SAID TO BE SURE NOT EVERYTHING HAS GONE WELL FOLLOWING HEAVY LOSSES ING PULLED OUT OF THE BRITISH INSURANCE MARKET LAST YEAR SELLING ITS LIFE ASSOCIATION OF SCOTLAND LTD UNIT TO BRITANNICA LIFE AND CLOSING ITS ORION INSURANCE CO PLC GENERAL INSURANCE UNIT WITH PART SOLD TO GUARDIAN ROYAL EXCHANGE PLC IT ALSO SOLD A US UNIT WISCONSIN NATIONAL LIFE INSURANCE CO TO PROTECTIVE LIFE CORP OF BIRMINGHAM ALA CURRENTLY IT IS IN THE PROCESS OF SELLING THE LIFE REINSURANCE PORTFOLIO OF ANOTHER PROBLEM SUBSIDIARY NEDERLANDSE REASSURANTIE GROEP TO EMPLOYERS RE A UNIT OF GENERAL ELECTRIC CO OF FAIRFIELD CONN AS ONE OF EUROPE'S TOP 15 FINANCIAL INSTITUTIONS IN TERMS OF MARKET CAPITALIZATION HOWEVER ING AS A MERGED OPERATION WIELDS MORE CLOUT THAN ITS TWO COMPONENTS DID ON THEIR OWN WE ARE DOING MORE DEALS AND BIGGER DEALS MR JACOBS SAYS AS A RECENT EXAMPLE HE CITES ING'S ACQUISITION JOINTLY WITH HOCHTIEF AG OF GERMANY OF A DUTCH CONSTRUCTION COMPANY BALLAST NEDAM BV FROM BRITISH AEROSPACE PLC AT THE END OF LAST YEAR THE DEAL WAS NEGOTIATED IN A FEW WEEKS FOLLOWING THE COLLAPSE OF PLANS FOR BALLAST NEDAM TO MERGE WITH ANOTHER COMPANY HE SAID THANKS TO THE COMBINATION OF ING BANK'S FINANCIAL ENGINEERING SKILLS AND THE EQUITY INVESTMENT CAPACITY OF ING'S LIFE INSURANCE ARM UNTIL THE MERGER WITH NMB POSTBANK THE FORMER NATIONALENEDERLANDEN EXECUTIVE CONFESSES I WAS MORE IN FAVOR OF A MERGER WITH ANOTHER INSURANCE COMPANY BUT MY INSURANCE COLLEAGUES CONVINCED ME THAT A MERGER WITH A BANK WAS THE THING NOW I AM FULLY CONVINCED THAT WE TOOK THE RIGHT STEP ON THE LIFE INSURANCE FRONT AROUND 8 OF ING'S TOTAL NEW DOMESTIC BUSINESS COMES FROM SALES THROUGH THE 400 BRANCHES OF ITS INTERNATIONALE NEDERLANDEN BANK SUBSIDIARY CORRESPONDING TO THE FORMER NMB BANK NETWORK A FURTHER 2 COMES FROM SALES THROUGH THE POSTBANK NETWORK THAT SERVES FOUR MILLION HOUSEHOLDS THROUGH 2100 POST OFFICES AND WE HAVE ONLY JUST STARTED SAYS MR JACOBS IN PART SUCH MOVES ARE DEFENSIVE OTHER DUTCH BANKS ARE ALSO SETTING UP THEIR OWN INSURANCE OPERATIONS BY THE END OF THE DECADE HOWEVER ING HOPES SALES THROUGH ITS DUTCH BANKING NETWORK WILL ACCOUNT FOR AROUND 20 OF ITS NEW LIFE INSURANCE BUSINESS IN THE NETHERLANDS ENABLING IT TO BOOST ITS SHARE OF THE DUTCH MARKET BY A FEW PERCENTAGE POINTS ENCOURAGED BY ITS EXPERIENCE IN THE NETHERLANDS ING PLANS TO FORGE SIMILAR BANKINSURANCE LINKS BETWEEN ITS BUSINESSES INTERNATIONALLY LAST APRIL ING SVILUPPO FINANZIARIA SPA AN ITALIAN BROKERAGE AND FINANCIAL SERVICES UNIT ACQUIRED IN 1991 ADDED LIFE INSURANCE TO ITS PRODUCTS MENU IN DECEMBER ING BOUGHT A SIGNIFICANT STAKE IN A BIG EAST EUROPEAN BANKING INSTITUTION POLAND'S BANK SLASKI UNDER PLANS FOR A NEW POLISH LIFE INSURANCE VENTURE SLASKI IS EXPECTED TO BE A MAJOR OUTLET FOR ING SAVINGS PRODUCTS INTERNATIONALLY ING IS LAYING THE FOUNDATIONS FOR GROWTH WITH WHAT IT CALLS GREENFIELDS LIFE INSURANCE OPERATIONS IN COUNTRIES SUCH AS HUNGARY AND SOUTH KOREA ING BANK MEANWHILE HAS A LONGSTANDING TRADITION OF INVOLVEMENT IN EMERGING MARKETS IN THE EARLY 1980S WHAT WAS THEN NMB BANK ESTABLISHED ITSELF AS A LEADER IN THE SECONDARY MARKET FOR LATIN AMERICAN DEBT FOLLOWING THE FALL OF THE IRON CURTAIN ING BANK EXPANDED INTO CENTRAL AND EASTERN EUROPE CONCENTRATING ON TRADE AND PROJECT FINANCE AND SERVICES LIKE PAYMENTS TRANSFERS IT NOW HAS OPERATIONS IN MORE THAN 40 COUNTRIES 9402280159 940228 EDUCATION MORE COLLEGES OFFER DEGREES IN THREE YEARS BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL THE WORD CRAM IS TAKING ON NEW MEANING AT SOME COLLEGE CAMPUSES WHEN MIDDLEBURY COLLEGE IN VERMONT ANNOUNCED LAST WEEK IT WILL OFFER A THREEYEAR UNDERGRADUATE DEGREE FOR STUDENTS MAJORING IN INTERNATIONAL STUDIES IT JOINED A SMALL BUT GROWING MOVEMENT OF COLLEGES AND UNIVERSITIES TO REDUCE COSTS TO STUDENTS BY OFFERING ACCELERATED THREEYEAR UNDERGRADUATE DEGREES ANOTHER SMALL LIBERAL ARTS COLLEGE ALBERTUS MAGNUS COLLEGE IN NEW HAVEN CONN INTRODUCED A THREEYEAR DEGREE PROGRAM LAST SEPTEMBER ALTHOUGH THE PROGRAM IS ONLY AN OPTION 80 OF THE FRESHMAN CLASS SIGNED UP THE STATE UNIVERSITY OF NEW YORK PLANS TO INTRODUCE ACCELERATEDDEGREE PILOT PROGRAMS THIS SUMMER AT SEVEN OF ITS 64 CAMPUSES SEVERAL SMALL COLLEGES IN THE MIDWEST HAVE IMPLEMENTED THREEYEAR PROGRAMS THE PRESIDENTS OF OTHER INSTITUTIONS INCLUDING STANFORD UNIVERSITY AND OBERLIN COLLEGE IN OHIO HAVE BEEN TALKING ABOUT IT AND A RECENT NATIONWIDE SURVEY OF 2000 HIGH SCHOOL STUDENTS BY GEORGE DEHNE & ASSOCIATES FOUND THAT 77 EXPRESSED A DESIRE TO ATTEND A COLLEGE OFFERING A THREEYEAR DEGREE I THINK WHAT WE'RE GOING TO SEE IN THE FUTURE IS A STEADY INCREASE IN STUDENT DEMAND FOR THIS OPTION AND A STEADY INCREASE IN THE NUMBER OF INSTITUTIONS MEETING IT IN EDUCATIONALLY RESPONSIBLE WAYS SAYS S FREDERICK STARR PRESIDENT OF OBERLIN COLLEGE THE AUTOMATIC FOURYEAR DEGREE IS A THING OF THE PAST THREEYEAR DEGREE PROGRAMS ARE HARDLY NEW MANY SCHOOLS ALREADY ALLOW STUDENTS TO GRADUATE EARLY IF THEY COMPLETE THE REQUIRED COURSE WORK IN LESS THAN FOUR YEARS AND MORE FORMAL THREEYEAR PROGRAMS HAVE EMERGED PERIODICALLY HARVARD UNIVERSITY OFFERED THREEYEAR DEGREES IN THE 17TH AND 19TH CENTURIES AT A TIME WHEN FEWER COURSES WERE AVAILABLE IN THE LATE 19TH AND EARLY 20TH CENTURIES MANY SCHOOLS INCLUDING THE UNIVERSITY OF CHICAGO COLUMBIA UNIVERSITY AND JOHNS HOPKINS UNIVERSITY EXPERIMENTED WITH ACCELERATED DEGREE PROGRAMS IN THE 1970S RISING TUITION COSTS PROMPTED ANOTHER ROUND OF ACCELERATED DEGREE PROGRAMS AT STATE UNIVERSITIES IN CALIFORNIA NEW YORK WISCONSIN AND ELSEWHERE BUT AS IN THE PAST MOST PROGRAMS DIED DUE TO WANING INTEREST WITH COLLEGES ONCE AGAIN REVERTING TO THE TRADITIONAL BRITISHSTYLE FOURYEAR DEGREE THE COLLEGE ADDED 10 MINUTES TO EVERY CLASS PERIOD AND WENT FROM TWO 15WEEK SEMESTERS TO THREE 13WEEK SEMESTERS EACH YEAR FACULTY MEMBERS WERE OFFERED EXTRA MONEY FOR TEACHING IN THE NEW THIRD SEMESTER THE CHANGES HAVE GENERATED A LOT OF INTEREST INQUIRIES AT THE ADMISSIONS OFFICE ARE UP 30 WITH APPLICATIONS UP MORE THAN 5 MR BUCCINO SAYS AND AT LEAST 70 OTHER COLLEGES AND UNIVERSITIES HAVE REQUESTED INFORMATION ABOUT THE PROGRAM JOCELYN MOSHER AN 18YEAROLD FRESHMAN FROM LIVERMORE FALLS MAINE SAYS THE OPPORTUNITY TO EARN A BACHELOR OF ARTS DEGREE IN THREE YEARS PERSUADED HER TO CHOOSE ALBERTUS MAGNUS SHE SAYS HER PARENTS WHO HAD TO TAKE OUT A LOAN TO FINANCE HER EDUCATION ARE EXCITED BECAUSE I'LL BE STARTING MY CAREER SOONER IN ADDITION TO ALLOWING STUDENTS TO ENTER THE WORK FORCE SOONER AND PAY OFF THEIR COLLEGE LOANS FASTER PROPONENTS OF THREEYEAR PROGRAMS SAY THEY OPEN UP SPACES FOR MORE STUDENTS AND SAVE TAX DOLLARS BY REDUCING STATE AND FEDERAL SUBSIDIES PROPONENTS ALSO ARGUE THAT SUCH PROGRAMS FORCE COLLEGES TO REEXAMINE THEIR MISSION AND STREAMLINE DEGREE PROGRAMS TO ESSENTIAL COURSES BUT CRITICS SAY THAT STUDENTS TYPICALLY NEED MORE THAN THREE YEARS AT COLLEGE ESPECIALLY SINCE HIGH SCHOOLS ARE DOING A POORER JOB OF PROVIDING THEM WITH BASIC SKILLS IN FACT AT STANFORD WHICH IS STUDYING A THREEYEAR PROPOSAL SOME FACULTY MEMBERS HAVE ARGUED THAT EVEN FOUR YEARS ISN'T ENOUGH SOME WOULD LIKE FIVE SAYS SPOKESMAN TERRY SHEPARD OTHERS WORRY THAT MANY COLLEGES WILL BE HARDPRESSED TO RECRUIT ENOUGH STUDENTS IF TURNOVER INCREASES SHARPLY AND SOME EXPRESS CONCERN THAT STUDENTS WILL MISS OUT ON THE COMPLETE COLLEGE EXPERIENCE INCLUDING SOCIAL AND EXTRACURRICULAR ACTIVITIES AND COMMUNITY SERVICE ARTHUR LEVINE CHAIRMAN OF THE INSTITUTE FOR EDUCATIONAL MANAGEMENT AT HARVARD SAYS THREEYEAR PROGRAMS ARE ALSO IMPRACTICAL FOR STUDENTS WHO WORK THEIR WAY THROUGH COLLEGE AND HAVE TO STRUGGLE TO EARN A DEGREE IN FOUR YEARS HE ADDS THAT COLLEGES SHOULD REEVALUATE WHAT STUDENTS ARE LEARNING NOT HOW MUCH TIME THEY SIT IN CLASSROOMS EVEN PROPONENTS AGREE THAT THREEYEAR PROGRAMS ARE MOST APPROPRIATE FOR EXTREMELY MOTIVATED STUDENTS MIDDLEBURY EXPECTS ONLY 12 TO 15 STUDENTS OUT OF 1950 TO ENROLL IN ITS NEW THREEYEAR PROGRAM WHICH WILL INCLUDE TWO SUMMER SESSIONS AND SAVE STUDENTS UP TO 20000 WE EXPECT A LIMITED NUMBER OF HIGHLY QUALIFIED HIGHLY MOTIVATED HIGHLY FOCUSED AND MATURE STUDENTS TO COME INTO THE PROGRAM SAYS MIDDLEBURY'S PRESIDENT JOHN MCCARDELL RATHER THAN EXTEND THE SCHOOL YEAR OTHER COLLEGES AND UNIVERSITIES ARE OFFERING ACCELERATED DEGREES BY GRANTING CREDITS FOR ADVANCEDPLACEMENT COURSES TAKEN AT HIGH SCHOOL BY TOP STUDENTS IN FACT SOME COLLEGES ALLOW STUDENTS TO ENTER AS SOPHOMORES IF THEY PASSED ENOUGH ADVANCEDPLACEMENT EXAMS GERHARD CASPER PRESIDENT OF STANFORD LAST YEAR SUGGESTED OFFERING A CLEARLY DESIGNED THREEYEAR ALTERNATIVE THAT WOULD RELY ON A MIX OF ADVANCEDPLACEMENT CREDITS AND A REDUCTION IN REQUIREMENTS FOR SOME STUDENTS IT'S NOT FOR EVERYONE SAYS OBERLIN'S MR STARR WE ARE FLEXIBLE IN ALLOWING THE PERSON WHO NEEDS TO TAKE FIVE YEARS LET'S BE EQUALLY FLEXIBLE FOR THE PERSON WHO CAN DO IT IN THREE 9402280158 940228 ANHEUSERBUSCH COS RAISES SOME PRICES DISCOUNTS OTHERS ST LOUIS BREWER HOPES MOVES WILL INCREASE THE SALES OF ITS PREMIUM BRAND BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A DISAPPOINTING YEAR THE BEER THAT'S PROUD TO BE YOUR BUD NEEDS TO MAKE A LOT OF NEW FRIENDS TO HELP THAT HAPPEN BREWER ANHEUSERBUSCH COS IS TAKING STEPS TO KEEP BUDWEISER'S PREMIUM PRICE FROM PUTTING OFF CONSUMERS ONE TACTIC RAISING THE PRICE OF LESSEXPENSIVE BEERS TO MAKE BUDWEISER'S MORE ATTRACTIVE ANOTHER DISCOUNT BUDWEISER WHERE NECESSARY TO MAINTAIN MARKET SHARE AND KEEP ANY INCREASES ON THE FLAGSHIP BRAND BELOW INFLATION SUCH MOVES ARE CRITICAL FOR BUDWEISER'S PREMIUM BRAND REPRESENTS THE BULK OF ANHEUSER'S 1993 SALES OF 115 BILLION AND 5945 MILLION IN EARNINGS BUT LAST YEAR WASN'T A GOOD ONE FOR WHAT ANHEUSER CALLS THE BUDWEISER FAMILY OF BEERS BUD BUD LIGHT BUD DRY AND THE NEW ICE DRAFT FROM BUDWEISER AS ITS SALES SLIPPED NEARLY 2 BUDWEISER ITSELF WAS RESPONSIBLE FOR MOST OF THE PROBLEM BUD LIGHT POSTED DOUBLEDIGIT VOLUME GAINS BUD DRY REMAINS AN INSIGNIFICANT BRAND AND ICE DRAFT WASN'T ROLLED OUT UNTIL LATE IN THE YEAR MUCH OF THAT DECLINE OCCURRED IN CALIFORNIA ANHEUSER'S SINGLE MOST IMPORTANT MARKET WHERE A SLUGGISH ECONOMY AND SEVERE PRICE WARS SLASHED BUD SALES WITHOUT CALIFORNIA BUD BRAND SALES WOULD HAVE BEEN FLAT BUDWEISER REMAINS OUR NO 1 PRIORITY AND WILL CONTINUE TO BENEFIT FROM AGGRESSIVE MARKETING SUPPORT JERRY E RITTER ANHEUSER'S CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER TOLD SECURITIES ANALYSTS AT A CONFERENCE IN SCOTTSDALE ARIZ LAST WEEK TO BOOST BUD HE SAID ANHEUSER LAST MONTH RAISED BEER PRICES ABOUT 3 AT THE CONSUMER LEVEL ON MORE THAN HALF ITS VOLUME PRIMARILY ON SUBPREMIUM BRANDS THE COMPANY SELECTIVELY HELD PRICES IN SOME MARKETS TO REDUCE DISCOUNTING OVERALL ST LOUISBASED ANHEUSER EXPECTS US VOLUME GROWTH OF 2 TO 3 FOR ITS BEERS THIS YEAR AND SAYS ONE RESULT OF THE PRICING STRATEGIES COULD BE A 1 INCREASE IN NET REVENUE PER BARREL MR RITTER ALSO SAID ANHEUSER THE WORLD'S LARGEST BREWER IS LOOKING AT SEVERAL TYPES OF REGIONAL MICROBREWERY INVESTMENT OPPORTUNITIES IN RECOGNITION OF THE GROWING POPULARITY OF SOME MICROBREWS AND THEIR TOLL ON ITS BUDWEISER BRAND WE MAY MAKE A MICROBREW OURSELVES OR IN COMBINATION WITH MICROBREWERS HE SAID ALLUDING TO NEW DRINKING PREFERENCES BY YOUNG PROFESSIONALS AND BABY BOOMERS RATHER THAN SWITCHING TO DISTILLED SPIRITS AS DID THE GENERATION PRECEDING THEM THE BOOMERS ARE DEVELOPING A DISCRIMINATING TASTE FOR BEER AND ARE EXPANDING THIS END OF THE MARKET OVERSEAS ANHEUSER PLANS TO INVEST SIGNIFICANT CASH FLOW IN WHAT MR RITTER CALLED OPENENDED INTERNATIONAL BREWING OPPORTUNITIES IN ORDER TO CREATE LONGTERM SUSTAINABLE GROWTH FOR OUR COMPANY IN AN INTERVIEW HE SAID THAT ALTHOUGH DOMESTIC BREWING WILL DRIVE OUR EARNINGS FOR THE NEXT FEW YEARS INTERNATIONAL WILL DO IT IN THE NEXT CENTURY ANHEUSER NOW HOLDS 443 OF THE US MARKET AND ABOUT 9 OF THE GLOBAL MARKET MR RITTER SAYS THE COMPANY HUES TO ITS GOAL OF A 50 DOMESTIC MARKET SHARE BY THE YEAR 2000 HE ADDED WE ARE NOT INTERESTED IN SIGNIFICANTLY EXPANDING OUR FOOD OR ENTERTAINMENT BUSINESSES OR DIVERSIFYING INTO AN ENTIRELY NEW BUSINESS LINE 9402280157 940228 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH OR MORE 9402280156 940228 HEARD ON THE STREET AMERICAN HOME PRODUCTS STOCK LOOKS LIKE BARGAIN TO SOME INVESTORS FOLLOWING 31 SLIDE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN HOME PRODUCTS MAKES ADVIL ITS SHAREHOLDERS NEED IT INVESTORS IN THE MADISON NJ DRUG AND FOOD COMPANY HAVE ENDURED A PAINFUL 31 SLIDE AS THE STOCK HAS TUMBLED TO 59 1/2 ON FRIDAY FROM A PEAK OF 86 1/4 IN LATE 1991 BUT ALTHOUGH THE SLUMP MAY HAVE BEEN EXCRUCIATING FOR AMERICAN HOME PRODUCTS' LONGTIME SHAREHOLDERS IT ALSO MEANS NEW INVESTORS CAN SWOOP IN AND BUY THE STOCK AT A BARGAIN PRICE SOME MONEY MANAGERS SAY THE SHARES NOW LANGUISH AT 13 TIMES 1993 EARNINGS OF 473 A SHARE WITH A YIELD OF 49 FOR THIS COMPANY TO SELL AT A DISCOUNT TO THE MARKET IS RIDICULOUS SAYS DONALD YACKTMAN MANAGER OF THE 153 MILLIONASSET YACKTMAN FUND MR YACKTMAN NOTES THAT AMERICAN HOME PRODUCTS HAS AN ENVIABLE RECORD THE COMPANY HAS RAISED ITS DIVIDEND FOR 42 CONSECUTIVE YEARS AT YEAR END ITS BALANCE SHEET WAS BRIMMING WITH 22 BILLION IN CASH WHILE ITS DEBTS TOTALED 864 MILLION BUT THOSE VIRTUES HAVE BEEN OVERLOOKED AS THE MARKET HAS SOURED ON DRUG COMPANIES AND GROWN SKITTISH ABOUT THE VALUE OF BRAND NAMES DESPITE THE FACT THAT THEY HAVE A STRONG CASH FLOW A MODEST PRICE AND A GOOD DIVIDEND YIELD EVERYBODY IS LOOKING AT A DOOMSDAY SCENARIO SAYS WARREN ISABELLE A PORTFOLIO MANAGER WITH PIONEER GROUP IT'S REALLY BEEN DEATH TO BE IN ANY OF THESE DRUG COMPANIES AMERICAN HOME PRODUCTS IS A BIG SELLER OF BOTH PRESCRIPTION DRUGS AND OVERTHECOUNTER BRANDNAME MEDICINES LIKE ANACIN DIMETAPP AND ROBITUSSIN IN ADDITION THE COMPANY GOT 11 OF ITS REVENUE LAST YEAR FROM SALES OF CHEF BOYARDEE AND OTHER FOOD PRODUCTS BRUCE BAUGHMAN COMANAGER OF THE FRANKLIN RISING DIVIDENDS FUND RECENTLY SOLD HIS STAKE IN AMERICAN HOME PRODUCTS IT'S STILL A GOOD COMPANY HE SAYS BUT I CAN SEE A LOT OF CHALLENGES TO THE PROFIT MARGINS LIKE OTHER PHARMACEUTICAL COMPANIES AMERICAN HOME PRODUCTS FACES INCREASING PRESSURE TO HOLD DOWN ITS PRESCRIPTIONDRUG PRICES MR BAUGHMAN NOTES IN ADDITION THE COMPANY'S OVERTHECOUNTER MEDICINES ARE FACING STIFF COMPETITION FROM LOWERPRICED STORE BRANDS THERE USED TO BE RESISTANCE TO STORE BRANDS MR BAUGHMAN SAYS BUT THAT'S BEEN WORN DOWN MY WIFE WON'T BUY THE BRANDED PRODUCT IF SHE CAN BUY THE STORE BRAND IT'S A MATTER OF PRINCIPLE WITH HER BUT YACKTMAN FUND'S MR YACKTMAN THINKS THAT THE ALLURE OF STORE BRANDS WILL WANE AS THE ECONOMY CONTINUES TO RECOVER AND INCOMES RISE AS REAL DISPOSABLE INCOME GOES UP PEOPLE WILL BUY BRANDED PRODUCTS OVER HOUSE BRANDS AND GENERICS MR YACKTMAN SAYS LAST YEAR AMERICAN HOME PRODUCTS SPENT 278 MILLION TO BUY BACK 45 MILLION SHARES LEAVING 310 MILLION SHARES OUTSTANDING AS OF DEC 31 THE COMPANY COULD REPURCHASE AN ADDITIONAL 55 MILLION SHARES UNDER A SHARE BUYBACK PROGRAM THAT WAS AUTHORIZED BY DIRECTORS IN 1992 THE BIGGEST CHALLENGE FOR THE COMPANY IS FINDING A USE FOR ITS CASH MR YACKTMAN SAYS AT THESE PRICES ONE OF THE BEST USES WOULD BE TO BUY BACK STOCK EFFORTS TO HOLD DOWN DRUG COSTS WILL DO LESS DAMAGE TO AMERICAN HOME PRODUCTS THAN TO OTHER DRUG COMPANIES ARGUES L ROY PAPP COMANAGER OF THE L ROY PAPP STOCK FUND AMERICAN HOME PRODUCTS DOESN'T HAVE A LOT OF VERY HIGHPRICED DRUGS HE NOTES MR PAPP FIGURES THAT BECAUSE OF COSTCONTAINMENT EFFORTS THE EARNINGS GROWTH RATE OF THIS COMPANY WHICH HAD BEEN 9 FOR THE PAST FIVE OR 10 YEARS WILL GO DOWN TO A LOWER LEVEL BUT WE STILL THINK THEY'LL GROW AT AROUND 7 IF YOU HAVE A 7 RETURN FROM GROWTH AND A 5 DIVIDEND THAT'S A TOTAL RETURN OF 12 A YEAR THAT'S NOT THE MOON BUT WHEN SHORTTERM INTEREST RATES ARE 35 AND LONGTERM RATES ARE AT 7 IT LOOKS ATTRACTIVE ANALYSTS ARE LOOKING FOR AMERICAN HOME PRODUCTS' EARNINGS TO RISE 6 IN 1994 TO 501 A SHARE ACCORDING TO FIRST CALL FOR 1995 ANALYSTS ESTIMATE THAT EARNINGS WILL CLIMB AN ADDITIONAL 7 TO 538 THAT MEANS THAT AMERICAN HOME IS TRADING AT LESS THAN 12 TIMES ESTIMATED 1994 EARNINGS AND AT BARELY 11 TIMES FORECASTED 1995 PROFIT MR PAPP THINKS THE STOCK IS AN ESPECIALLY GOOD INVESTMENT FOR CONSERVATIVE INVESTORS I HATE TO CALL IT A WIDOWSANDORPHANS STOCK MR PAPP SAYS BUT IT HAS SOME OF THOSE CHARACTERISTICS 9402280155 940228 WHO'S NEWS CMS ENERGY CORP CMS ENERGY CORP DEARBORN MICH JOHN B YASINSKY 54 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF GENCORP INC WAS NAMED TO THIS UTILITY'S BOARD EXPANDING THE BOARD TO 13 MEMBERS 9402280154 940228 WHO'S NEWS ADC TELECOMMUNICATIONS INC ADC TELECOMMUNICATIONS INC MINNEAPOLIS ROBERT E SWITZ FORMERLY A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT BURRBROWN CORP WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS MAKER OF TELECOMMUNCIATIONS EQUIPMENT MR SWITZ 47 YEARS OLD FILLS A POST THAT HAS BEEN VACANT SINCE LAST APRIL 9402280153 940228 DAIRY MART COMPLETES OFFERING ENFIELD CONN DAIRY MART CONVENIENCE STORES INC SAID IT COMPLETED AN OFFERING OF 75 MILLION OF 10 1/4 SENIOR SUBORDINATED NOTES PROCEEDS WILL BE USED TO REDEEM ITS 14 1/4 SUBORDINATED DEBENTURES OUTSTANDING TO REDUCE BANK DEBT AND FOR WORKING CAPITAL BEAR STEARNS & CO WAS THE UNDERWRITER 9402280151 940228 EU'S INFLATION ROSE IN JANUARY 7 MEMBERS MEET TREATY TARGET LUXEMBOURG YEARONYEAR INFLATION IN THE EUROPEAN UNION PICKED UP TO A PROVISIONAL 34 IN JANUARY FROM 33 IN DECEMBER THE EU'S STATISTICS OFFICE SAID INFLATION WAS DOWN FROM 35 IN JANUARY 1993 EUROSTAT SAID SEVEN EU STATES IRELAND DENMARK FRANCE THE NETHERLANDS BELGIUM LUXEMBOURG AND THE UNITED KINGDOM NOW MEET THE CONDITION IN THE MAASTRICHT TREATY ON EUROPEAN UNION THAT COUNTRIES WISHING TO MOVE TO A SINGLE EUROPEAN CURRENCY MUST HAVE AN INFLATION RATE WITHIN 15 PERCENTAGE POINTS OF THE AVERAGE OF THE THREE LOWEST RATES THAT AVERAGE WAS 18 IN JANUARY EUROSTAT SAID FOUR COUNTRIES APPLYING TO JOIN THE EU AUSTRIA FINLAND SWEDEN AND NORWAY ALSO MET THE CRITERION ACCORDING TO THE EUROSTAT DATA GERMANY ON THE BASIS OF WESTERN GERMAN INFLATION ALONE DOESN'T YET MEET THE MAASTRICHT TREATY CRITERION LOW INFLATION IS JUST ONE OF SEVERAL CRITERIA FOR A SINGLE CURRENCY SET OUT IN THE MAASTRICHT TREATY THE OTHERS ARE STABLE EXCHANGE RATES A LOW BUDGET DEFICIT AND A DEBTTOGROSS DOMESTIC PRODUCT RATIO OF LESS THAN 60 9402280150 940228 ONTARIO MCDONALD'S STAFF VOTES AGAINST UNIONIZING TORONTO EMPLOYEES AT A FRANCHISED MCDONALD'S RESTAURANT IN ORANGEVILLE ONTARIO VOTED 7719 AGAINST UNIONIZING REVERSING AN EARLIER VOTE THE EMPLOYEES HAD VOTED IN FAVOR OF UNIONIZING LAST NOVEMBER WHEN A 17YEAROLD HIGHSCHOOL STUDENT LED A CAMPAIGN TO IMPROVE WORKING CONDITIONS FOR THE STAFF BUT LAWYERS FOR THE MCDONALD'S FRANCHISE CHALLENGED THE BID BEFORE THE ONTARIO LABOR RELATIONS BOARD ARGUING THAT MANY OF THE EMPLOYEES HAD CHANGED THEIR MINDS SOON AFTER VOTING IN FAVOR OF UNIONIZING AFTER A PROTRACTED DISPUTE AT THE LABOR BOARD LAWYERS FOR THE FRANCHISE AND THE UNION AGREED TO HOLD A SECOND VOTE AS A MEANS OF SETTLEMENT SPOKESMEN FOR MCDONALD'S CORP OAK BROOK ILL AND MCDONALD'S RESTAURANTS OF CANADA LTD TORONTO SAID NO MCDONALD'S RESTAURANTS IN THE US OR CANADA ARE UNIONIZED SOME MCDONALD'S RESTAURANTS ELSEWHERE INCLUDING MEXICO AND EUROPE ARE UNIONIZED MARK ORTLIEB AN OFFICIAL WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION SAID WE'RE ACTIVELY SEEKING OTHER MCDONALD'S AND OTHER FASTFOOD RESTAURANTS IN CANADA FOR UNIONIZATION DRIVES 9402280149 940228 JAPAN'S SECOM CO CONSIDERS EXPANSION OF OPERATIONS IN ASIA TOKYO SECOM CO JAPAN'S LEADING MAKER OF ELECTRONIC SECURITY SYSTEMS IS CONSIDERING EXPANDING ITS OPERATIONS IN ASIA A SENIOR COMPANY EXECUTIVE SAID SECOM ALREADY OPERATES JOINT VENTURES IN TAIWAN SOUTH KOREA THAILAND MALAYSIA AND SINGAPORE KOJI KATO HEAD OF SECOM'S MANAGEMENT CONTROL OFFICE SAID THE COMPANY IS NOW STUDYING INROADS INTO OTHER REMAINING ASIAN COUNTRIES AS WELL MR KATO SAID THE ASIAN REGION HAS HIGH GROWTH POTENTIAL THE SITUATION IN ASIAN COUNTRIES IS VERY MUCH LIKE THE ONE IN THE EARLY 1960S IN JAPAN HE SAID HE DECLINED TO SPECIFY WHICH ASIAN COUNTRIES ARE BEING CONSIDERED FOR MORE SECOM INVESTMENT BUT SAID THE COMPANY'S DELIBERATIONS WILL BE CONCLUDED SOON IN MAY SECOM WILL ESTABLISH ITS FIRST JOINT VENTURE IN CHINA IN THE CITY OF DALIAN MR KATO SAID THE COMPANY IS ALSO CONSIDERING MORE VENTURES IN SEVERAL OTHER LOCATIONS IN CHINA MEANWHILE SECOM'S EARNINGS FOR THE FISCAL YEAR ENDING MARCH 31 ARE LIKELY TO MEET FORECASTS AS A RESULT OF SMOOTH GROWTH IN CONTRACTS FOR SECOM'S MECHANICAL SECURITY SERVICES MR KATO SAID SECOM FORECASTS PRETAX PROFIT FOR THE CURRENT FISCAL YEAR OF 333 BILLION YEN 316 MILLION UP FROM 2915 BILLION YEN A YEAR EARLIER ON SALES OF 1789 BILLION YEN UP FROM 16586 BILLION YEN A YEAR EARLIER 9402280148 940228 ECONOMY CONSUMER CONFIDENCE ROSE TOWARD END OF FEBRUARY WASHINGTON CONSUMER CONFIDENCE APPEARS TO HAVE PICKED UP A BIT TOWARD THE END OF FEBRUARY SUGGESTING THE WINTER BLUES MAY BE OVER THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX ROSE TO 932 IN THE LATER HALF OF THIS MONTH FROM AN EARLY FEBRUARY READING OF 929 ACCORDING TO MARKET PARTICIPANTS WHO SAW THE REPORT CONSUMER CONFIDENCE IS STILL DOWN A BIT FROM ITS JANUARY READING OF 943 THE MICHIGAN INDEX ALSO INDICATES THAT CONSUMERS ARE MORE OPTIMISTIC ABOUT INFLATION THAN THEY WERE LAST SUMMER THIS FINDING IS NOTEWORTHY GIVEN THAT THE BOND MARKETS HAVE BEEN EDGY RECENTLY ABOUT THE PROSPECTS OF HIGHER INFLATION IT JUST GOES TO SHOW THAT INFLATION ISN'T REALLY A MAIN STREET CONCERN RIGHT NOW IT'S A WALL STREET CONCERN SAID MORGAN STANLEY ECONOMIST STEPHEN ROACH A CONSUMERCONFIDENCE MEASURE ISSUED BY THE CONFERENCE BOARD IN NEW YORK ALSO SHOWED AMERICANS' MOOD WAS SLIGHTLY WORSE THAN IN JANUARY THE DECLINE WAS ATTRIBUTED TO COLD SLUSHY WINTER WEATHER SOME ANALYSTS SAID HIGHER INTEREST RATES MAY HAVE ALSO PLAYED A PART BUT THE PICKUP IN THE UNIVERSITY OF MICHIGAN'S INDEX AT THE END OF THE MONTH AS THE WEATHER CLEARED AND TEMPERATURES ROSE IN MANY REGIONS OF THE COUNTRY SUGGESTS THAT THE CONSUMERS WERE MAINLY AFFECTED BY THE FOUL WEATHER 9402280147 940228 SOME PUBLICISTS ARE GOOD SOME BAD AND SOME JUST TALK FUNNY BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL THE DAY OF THE LOS ANGELES EARTHQUAKE A COMPANY CALLED HI TECH COMMUNICATIONS SENT THIS PROMOTIONAL FAX TO REPORTERS EARTH SHATTERING 99 ON THE RICHTER STORY SCALE INCREDIBLE COMPUTER TECHNOLOGY AT WORK REPORTERS RECENTLY SENT THIS MESSAGE BACK TO THE PUBLICIST WHO CREATED THAT RHETORICAL BAUBLE TASTELESS THE FAX WAS SINGLED OUT FOR AN AWARD IN THE GOOD THE BAD AND THE UGLY PUBLICISTS CONTEST SPONSORED BY THE SAN FRANCISCO CHAPTER OF THE PUBLIC RELATIONS SOCIETY OF AMERICA AT A MEETING THE SOCIETY ANNOUNCED VICTORS FOR THE GOOD CATEGORIES WHICH INCLUDED BEING HELPFUL BEING PERSISTENT WITHOUT BEING ANNOYING AND HOLDING THE WACKIEST PRESS CONFERENCE THE WINNER OF THE LAST SUN MICROSYSTEMS FOR USING JUGGLERS TOSSING BOWLING PINS TO SHOW HOW NETWORK OPERATING SOFTWARE WORKS BUT MORE DEAR TO THE HEARTS OR AT LEAST SPLEENS OF THE JOURNALISTJUDGES WERE THE DEMERITS FOR BAD FLACKERY APPLE COMPUTER WAS THE BIG WINNER WITH FIVE DUBIOUS DISTINCTIONS INCLUDING REGULARLY DISTRIBUTING PRESS KITS THE SIZE OF PHONE BOOKS AND FOR A CATEGORY CALLED THE LIE THAT WOULDN'T DIE INSISTING THAT FORMER CHIEF EXECUTIVE JOHN SCULLEY WASN'T FIRED APPLE'S NEW CHIEF EXECUTIVE MICHAEL SPINDLER ALSO WON THE EMPTY SUIT AWARD FOR BEING THE SPOKESPERSON WITH THE LEAST TO SAY HE IMPRESSED THE JUDGES BY HOLDING A NEWS CONFERENCE AFTER A MAJOR REORGANIZATION AND REFUSING TO DISCUSS THE COMPANY'S FINANCES STRATEGIES OR PROBLEMS PACIFIC TELESIS GOT TWO AWARDS ONE FOR PUTTING OUT AN EARNINGS RELEASE WITH A 1 BILLION DISCREPANCY AND THE OTHER FOR AN 11PAGE SINGLESPACED EARNINGS HANDOUT THAT NEVER PROVIDED TOTAL REVENUE WILD 107 FM RADIO ALSO WON TWO AWARDS FOR THE MOST POORLY TIMED DUMBEST OR MOST TASTELESS PUBLICITY STUNT ONE WAS FOR HAVING A DEEJAY BLOCK TRAFFIC ON SAN FRANCISCO'S BAY BRIDGE FOR TWO HOURS DURING MORNING RUSH HOUR WHILE HE GOT A HAIRCUT THE OTHER WAS FOR PAYING JOHN WAYNE BOBBITT 2500 TO BE A DEEJAY FOR A DAY THE MOST UNPLEASANT CONTEST TO JUDGE WAS PROBABLY THE BAFFLEGAB AWARD FOR TECHNOGARBLE OR CONFUSING PROSE THE WINNER 3COM CORPORATION THE WORLD LEADER IN ETHERNET ADAPTERS TODAY ANNOUNCED A NEW MEMBER OF THE ETHERLINK III PARALLEL TASKING FAMILY OF ADAPTERS THE ETHERLINK III PCMCIA ADAPTER FOR NOTEBOOK PCS AND THE NEXT SENTENCE WAS EVEN WORSE 9402280146 940228 MARKETING & MEDIA UNIT PLANS CDROM DICTIONARY FOR SIGN LANGUAGE NEW YORK HARPERCOLLINS PUBLISHERS A UNIT OF NEWS CORP ANNOUNCED A CDROM DICTIONARY OF SIGN LANGUAGE FOR THE DEAF THE FIRST IN A NEW LINE OF MULTIMEDIA PRODUCTS A VISUAL DICTIONARY OF A VISUAL LANGUAGE BELONGS IN A VISUAL MEDIUM SAID NANCY DICKENSON HEAD OF NEW MEDIA FOR CONSUMER AND REFERENCE PUBLISHING AT HARPERCOLLINS THE COMPANY HAS BEEN PUBLISHING THE AMERICAN SIGN LANGUAGE DICTIONARY IN BOOK FORM FOR 13 YEARS AND MS DICKENSON SAID SHE THOUGHT IT WAS AN IDEAL CHOICE FOR LAUNCHING THE COMPANY'S NEW INTERACTIVE LINE WITH A SUGGESTED PRICE OF 5995 THE CDROM WILL BE 10 CHEAPER THAN THE UNABRIDGED HARDCOVER EDITION OF THE SAME DICTIONARY ON THE CDROM EACH OF 2500 SIGNS IS SHOWN IN A VIDEO DEMONSTRATION THAT ALSO EXPLAINS THE DERIVATION OF EACH SIGN ALSO A USER CAN TYPE IN A WORD IN FOUR LANGUAGES OTHER THAN ENGLISH AND BE SHOWN THE APPROPRIATE SIGN AND THE PRODUCT HAS A MEMORY SO IT CAN REMEMBER WHAT SIGNS A PERSON HAS VIEWED IN A GIVEN SESSION AND TEST THEM ON THOSE SIGNS 9402280145 940228 ECONOMY PROBABLE FED NOMINEE BLINDER STANDS IN SHARP CONTRAST TO INFLATION HAWKS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PROBABLE NOMINEE FOR VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD WHITE HOUSE ECONOMIST ALAN BLINDER WON'T BE JOINING THE FED'S ZERO INFLATION CAUCUS IF HE GETS THE JOB IN CONTRAST TO THE DWINDLING NUMBER OF INFLATION HAWKS AT THE FED WHO ARGUE THAT THE BOARD'S OVERRIDING GOAL OUGHT TO BE REDUCING THE INFLATION RATE BELOW CURRENT LEVELS MR BLINDER HAS WRITTEN THAT THE COST OF SUCH A POLICY IN TERMS OF ADDED UNEMPLOYMENT PROBABLY EXCEEDS THE BENEFITS ALTHOUGH MR CLINTON HASN'T MADE A FINAL DECISION HIS ECONOMIC ADVISERS ARE RECOMMENDING THAT HE NOMINATE MR BLINDER TO SUCCEED DAVID MULLINS WHO RESIGNED EARLIER THIS MONTH A TRENCHANT WRITER WHO ONCE DESCRIBED HIMSELF IN PRINT AS AN INFLATION DOVE MR BLINDER HAS ASSERTED THAT INFLATION'S MOST DEVOUT ENEMIES EXHIBIT VERBAL HYSTERIA IN HIS BUSINESS WEEK COLUMN IN 1990 HE WROTE A NATION IS BETTER OFF WITHOUT INFLATION JUST AS AN INDIVIDUAL IS BETTER OFF WITHOUT A HEADACHE BUT IF IT IS PAINFUL TO REDUCE INFLATION AS IT SURELY IS THEN A RATIONAL SOCIETY MAY BE LOATH TO TAKE DRASTIC ANTIINFLATION MEDICINE JUST AS A RATIONAL INDIVIDUAL MAY REJECT BRAIN SURGERY TO CURE A HEADACHE AND IN A 1987 BOOK HE CONCLUDED THAT THE COSTS THAT ATTEND THE LOW AND MODERATE INFLATION RATES EXPERIENCED IN THE UNITED STATES AND IN OTHER INDUSTRIAL COUNTRIES APPEAR TO BE QUITE MODEST MORE LIKE A BAD COLD THAN A CANCER ON SOCIETY EXTENDING THAT METAPHOR IN AN INTERVIEW LAST WEEK MR BLINDER SAID IF YOU DON'T HAVE A COLD YOU CERTAINLY DON'T WANT TO CONTRACT ONE THAT'S THE FED'S CURRENT JOB SOME AT THE FED SEE THINGS SIMILARLY BUT RARELY ACKNOWLEDGE AS MUCH IN PUBLIC PARTLY FOR FEAR THAT TOLERATING A LITTLE INFLATION INEVITABLY LEADS TO MORE THE TROUBLE WITH A MODEST RATE OF INFLATION IS THAT THERE IS A TENDENCY IF IT GOES ON INDEFINITELY TO TEND TO ACCELERATE FED CHAIRMAN ALAN GREENSPAN TOLD A CONGRESSIONAL HEARING LAST WEEK A VIEW MR BLINDER HAS CHALLENGED THERE IS NO DOWNSIDE TO LOW INFLATION SO FAR AS LONGTERM GROWTH IS CONCERNED MR GREENSPAN ALSO SAID HE DIDN'T ADDRESS THE POSSIBLE SHORTRUN PAIN THAT MIGHT BE REQUIRED TO REDUCE INFLATION ALTHOUGH SOME OUTSPOKEN FED OFFICIALS INCLUDING FORMER MEMBER WAYNE ANGELL THE CLEVELAND FEDERAL RESERVE BANK PRESIDENT JERRY JORDAN AND HIS PREDECESSOR LEE HOSKINS HAVE PREACHED THE WISDOM OF CUTTING THE INFLATION RATE TO ZERO FED POLICY HASN'T BEEN AIMED AT THAT GOAL IN CONGRESSIONAL TESTIMONY MR GREENSPAN LAST WEEK VOWED TO HEAD OFF AN INCREASE IN INFLATION BUT MADE NO PROMISES ABOUT REDUCING IT HE HAS SAID THAT THE FED'S GOAL IS PRICE STABILITY A STATE WHERE INFLATION NO LONGER IS A FACTOR IN ECONOMIC DECISIONS AND HAS SUGGESTED THAT THE US ISN'T FAR FROM THAT POINT THE FED EXPECTS THE GOVERNMENT'S MEASURE OF CONSUMER PRICES TO INCREASE ABOUT 3 THIS YEAR AND MR GREENSPAN SAID THAT GAUGE OVERSTATES THE TRUE INFLATION RATE BETWEEN 1/2 AND 1 1/2 PERCENTAGE POINTS TRYING TO PREDICT A FED NOMINEE'S VOTES ON INTEREST RATES FROM PAST WRITINGS CAN BE HAZARDOUS THE FED AND ITS STAFF TEND TO SHAPE THE THINKING OF THOSE WHO ARE APPOINTED TO THE BOARD I KNOW SOMEONE WHOM I THOUGHT WAS SOFT ON INFLATION WHEN THEY GOT ON THE BOARD THEY TURNED OUT TO BE VERY HARD ON INFLATION YOU CAN'T TELL WHAT SOMEONE'S GOING TO DO SAID STEVEN AXILROD A FORMER TOP FED STAFFER WHO'S NOW VICE CHAIRMAN OF NIKKO SECURITIES CO INTERNATIONAL MOREOVER MR BLINDER HAS CONSISTENTLY PRAISED THE POLICIES OF THE GREENSPAN FED IN HIS BUSINESS WEEK COLUMN PROMINENT IN ACADEMIC CIRCLES MR BLINDER ISN'T WELL KNOWN IN FINANCIAL MARKETS HE ISN'T A HOUSEHOLD NAME TO THE MARKET AS A WHOLE SAID DARWIN BECK WHO TRACKS THE FED FOR CS FIRST BOSTON INC A LIBERAL ALLIED WITH THE KEYNESIAN SCHOOL OF ECONOMISTS MR BLINDER 48 YEARS OLD HAS A DOCTORATE FROM THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY HE IS ON LEAVE FROM PRINCETON UNIVERSITY TO SERVE ON MR CLINTON'S THREEMEMBER COUNCIL OF ECONOMIC ADVISERS IF NOMINATED AND CONFIRMED BY THE SENATE MR BLINDER WOULD FILL A TERM THAT EXPIRES IN JANUARY 1996 ADMINISTRATION OFFICIALS SAY MR GREENSPAN'S TERM AS FED CHAIRMAN EXPIRES IN MARCH 1996 ALTHOUGH MR BLINDER COULD BE A CONTENDER FOR THE TOP POST HIS LACK OF FINANCIALMARKET EXPERIENCE WOULD BE A HANDICAP AT THIS POINT ADMINISTRATION INSIDERS CONSIDER ROBERT RUBIN THE FORMER INVESTMENT BANKER WHO HEADS MR CLINTON'S NATIONAL ECONOMIC COUNCIL AS THE MOST LIKELY SUCCESSOR TO MR GREENSPAN IF HE ISN'T REAPPOINTED OTHER CONTENDERS INCLUDE LAWRENCE SUMMERS NOW UNDERSECRETARY OF THE TREASURY FOR INTERNATIONAL MATTERS AND GERALD CORRIGAN FORMER PRESIDENT OF THE NEW YORK FED THE OTHER VACANCY ON THE SEVENMEMBER FED BOARD IS FOR A FULL 14YEAR TERM TO SUCCEED MR ANGELL BROOKINGS INSTITUTION ECONOMIST GEORGE PERRY HAD BEEN THE LEADING CANDIDATE FOR THAT SPOT UNTIL THE SURPRISE RESIGNATION OF MR MULLINS ALTERED ADMINISTRATION THINKING IF HE DOESN'T GET THE NOD THE WHITE HOUSE HOPES TO FIND A WOMAN OR MINORITY CANDIDATE 9402280143 940228 ENTERPRISE CRIME IN TWO CITIES SMALL BUSINESSES IN HARLEM AND A SUBURB SHARE THE PAIN BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IN THE TONY SUBURBAN ENCLAVE OF RYE NY A SMALL SIGN HANGS IN THE DOORWAY OF ANTHONY FRANCELLA'S ARTSUPPLY STORE IT READS SHOPLIFTERS WILL BE SHOT SURVIVORS WILL BE PROSECUTED ABOUT 25 MILES SOUTH IN THE HEART OF HARLEM RAFAEL TAVERAS MANAGER OF THE NEIGHBORHOOD FOOD MARKET GRAPPLES WITH CRIME DIFFERENTLY FRIGHTENED BY HIS WEEKLY CLASHES WITH SHOPLIFTERS MR TAVERAS IS TRYING TO HELP THE OWNER SELL THE ESTABLISHMENT ON MANHATTAN'S 125TH STREET SMALLBUSINESS OWNERS IN THE ECONOMICALLY DISPARATE LOCATIONS OF RYE AND HARLEM SEEM WORLDS APART BUT THEY SHARE A FINANCIAL AND PSYCHOLOGICAL BURDEN COMMON TO SMALL BUSINESSES IN EVERY PART OF THE COUNTRY COMBATING CRIMES SUCH AS SHOPLIFTING AND BURGLARY THAT IMPERIL THEIR PROFITABILITY OR EVEN THEIR SURVIVAL SHOPLIFTING TAKES AN ESPECIALLY HEAVY TOLL ON SMALL BUSINESSES NATIONWIDE SHOPLIFTING COSTS BUSINESSES BETWEEN 5 BILLION AND 8 BILLION A YEAR ACCORDING TO FIGURES COMPILED BY THE BETTER BUSINESS BUREAU OF WESTERN NEW YORK AFTER ANALYZING THE PROBLEM LOCALLY SMALL BUSINESSES BEAR A DISPROPORTIONATELY LARGE SHARE OF THESE LOSSES THE BBB SAYS MOST SMALL BUSINESSES CARRY COMPREHENSIVE INSURANCE POLICIES THAT COVER LOSSES FROM THEFT OR BURGLARY BUT MANY SAY THEY DON'T REPORT SUCH INCIDENTS FOR FEAR THAT THE COST OF THEIR POLICIES WILL RISE THE US GOVERNMENT HAS BEGUN TO HEED ENTREPRENEURS' GROWING ANXIETY ABOUT CRIME LAST MONTH DEMOCRATIC REP JOHN LAFALCE OF NEW YORK CHAIRMAN OF THE HOUSE OF REPRESENTATIVES' SMALL BUSINESS COMMITTEE ASKED THE SMALL BUSINESS ADMINISTRATION AND THE JUSTICE DEPARTMENT TO DRAFT PROPOSALS FOR FIGHTING CRIME AGAINST SMALL BUSINESSES SO FAR CRIME DOESN'T THREATEN THE VIABILITY OF THE THRIVING BUSINESS DISTRICTS IN RYE AND HARLEM BUT A RECENT VISIT TO THE MAIN COMMERCIAL THOROUGHFARES IN BOTH PLACES SUGGESTS THAT AT BEST CRIME CONFRONTS STORE OWNERS WITH A CONSTANT AND WORRISOME THREAT WITHOUT SIMPLE SOLUTIONS AT WORST CRIME FORCES SMALL ENTERPRISES OUT OF BUSINESS PURCHASE STREET WINDS LAZILY THROUGH DOWNTOWN RYE ITS SIDEWALKS FILLED WITH WELLDRESSED SHOPPERS AND ITS CURBS LINED WITH EXPENSIVE FOREIGN CARS CHARMING BOUTIQUES DOMINATE THE THOROUGHFARE RYE IS CLEARLY A TOWN WHERE VIOLENT CRIME IS NOT A PROBLEM CRIME OF ANY KIND HAS BEEN RARE UNTIL LATELY AT LEAST THERE ARE NO GATES ON STOREFRONTS THE POLICE DEPARTMENT DOESN'T EVEN COMPILE ANNUAL CRIME STATISTICS EVEN MR FRANCELLA WHOSE WARNING GRACES THE DOOR OF HIS RYE ART STORE ADMITS THAT CRIME ISN'T A BIG PROBLEM BUT OTHER STOREKEEPERS DISAGREE THEY NOTE THAT SHOPLIFTING HAS BECOME A REAL PROBLEM LATELY AND THAT BURGLARIES ONCE UNHEARD OF ARE NOW COMMON RYE SMOKE SHOP A TINY STORE SELLING PERIODICALS AND TOBACCO PRODUCTS RECENTLY SUFFERED ITS FIRST BREAKIN IN ITS 24YEAR HISTORY THERE HAVE BEEN A LOT OF LATENIGHT BREAKINS HERE IN TOWN BUT THE MEDIA HERE DON'T REPORT IT SAYS PATRICK CORCORAN WHO HAS OWNED THE LIGHTHOUSE BOOKSTORE FOR 11 YEARS PEOPLE IN RYE DON'T WANT TO ACKNOWLEDGE THERE'S A CRIME PROBLEM ONE NIGHT LAST YEAR THIEVES RIPPED THE LOCK OFF THE BOOKSTORE'S DOOR AND STOLE ABOUT 240 FROM THE CASH REGISTER MR CORCORAN NOW LEAVES THE REGISTER'S DRAWER OPEN AND EMPTY AT NIGHT SO WOULDBE ROBBERS CAN SEE THERE'S NOTHING INSIDE MR CORCORAN ALSO IS CONCERNED ABOUT THE INCREASING INCIDENCE OF SHOPLIFTING TO PREVENT PILFERAGE HE PLANS TO INSTALL ELECTRONIC TRACKING DEVICES ON THE BOOKS AND A SECURITY GATE AT THE DOOR HE DOESN'T KNOW HOW MUCH THESE MEASURES WILL COST OR HOW MUCH HE LOSES TO SHOPLIFTERS IF I THOUGHT ABOUT IT HARD ENOUGH IT WOULD RUIN MY DAY MR CORCORAN SAYS GREELEY HOUSE A BRIDALGIFT SHOP IN RYE PUT ALL OF ITS ITEMS BEHIND GLASS TWO YEARS AGO AFTER A GROUP OF SHOPLIFTERS MADE OFF WITH THREE SMALL CRYSTAL LAMPS WORTH 300 EACH FOUR SECURITY CAMERAS WHICH COST 10000 TO INSTALL NOW SCAN THE STORE FOR SHOPLIFTERS TOM NORDMANN OWNER OF THE RYE LIQUOR STORE LAMENTS CHANGES IN THE COMMUNITY ONE NIGHT LAST SUMMER HE SAYS THIEVES STOLE ABOUT 4 IN CHANGE AND A 3000 CASH REGISTER FROM HIS STORE IT WASN'T LIKE THIS WHEN I STARTED OUT SAYS MR NORDMANN WHO HAS WORKED AT THE STORE FOR 40 YEARS AND OWNED IT FOR 22 YEARS IN RYE HE ADDS CRIME IS MORE OF A PROBLEM NOW NONETHELESS RYE STOREOWNERS DON'T FEAR ATTACKS OR DAYTIME HOLDUPS UNLIKE STOREOWNERS ON HARLEM'S 125TH STREET WHERE HIGHSCHOOL STUDENTS ENTER SHOPS WITH GUNS UNDER THEIR COATS AND DRUG DEALERS OPERATE OUT OF STORE DOORWAYS AT THE NEIGHORHOOD FOOD MARKET MR TAVERAS SAYS THAT GANGS OF TEENAGERS COME IN ONCE A WEEK TO SHOPLIFT IN ONE RECENT INCIDENT AN ARMED TEENAGER ORDERED HIM TO BE QUIET WHILE OTHERS STOLE MERCHANDISE FROM THE SHELVES I'VE BEEN HERE TWO MONTHS AND THERE ARE TOO MANY PROBLEMS HE COMPLAINS THERE ARE A LOT OF NICE PEOPLE AROUND HERE BUT THESE KIDS HOLD YOU UP EVERY DAY THERE'S NOWHERE AROUND HERE I WANT TO WORK ANYMORE MR TAVERAS IS TRYING TO SELL NEIGHBORHOOD FOOD MARKET AT WHAT HE SAYS IS A SUBSTANTIAL LOSS TO THE OWNER WHO BOUGHT IT ONLY NINE MONTHS AGO THE MANAGER SAYS THE MARKET LOSES 15 TO SHOPLIFTERS OUT OF EVERY 100 OF MERCHANDISE SOLD DESPITE CRIME FEARS GUNS AND DRUGS 125TH STREET BUSTLES WITH SHOPPERS THE STREET WHICH SPANS THE BREADTH OF UPPER MANHATTAN BUZZES WITH CHAOTIC AUTOMOBILE TRAFFIC AND IS CRAMMED WITH HUNDREDS OF TINY RETAILERS THE WESTERN HALF OF 125TH STREET PARTICULARLY BETWEEN BROADWAY AND LENOX AVENUE HAS THE HIGHEST CONCENTRATION OF COMMERCIAL ACTIVITY IN HARLEM HERE ARE THE LANDMARK APOLLO THEATRE AS WELL AS NUMEROUS GROCERY STORES RESTAURANTS HAIR SALONS AND PHARMACIES AN ENLARGED POLICE PRESENCE SEEMS TO BE CURBING REPORTED CRIME A BIT LONGTIME RESIDENTS SAY THE NEW YORK POLICE DEPARTMENT SAYS THAT IN 1993 THERE WERE 91 ROBBERIES AND 88 BURGLARIES INVOLVING COMMERCIAL ESTABLISHMENTS IN THE PRECINCT COVERING MOST OF THE 125TH STREET BUSINESS AREA THAT REPRESENTS A DECLINE OF 47 AND 39 RESPECTIVELY FROM 1988 IT'S A GREAT LOCATION HERE SAYS ALEXANDRIA ORAMA MANAGER OF HARLEM MUSIC HUT A MUSIC STORE THAT OPENED ON 125TH STREET LAST YEAR ON A NICE SPRING DAY IT'S BEAUTIFUL AROUND HERE FOR THE BUSINESSES BECAUSE EVERYBODY'S WALKING AROUND BUT MUSIC HUT IS LOSING ABOUT 150 A MONTH TO SHOPLIFTERS AND ALREADY HAS WEATHERED TWO BREAKINS BOTH TIMES THIEVES UNSUCCESSFULLY TRIED TO DRILL THROUGH THE CEILING OF THE STORE'S BASEMENT MUSIC HUT OWNER PHILIP ORAMA SAYS HE SPENT ALMOST 2000 SECURING THE BASEMENT DOORS AND INSTALLING AN ALARM SYSTEM AFTER THE SECOND BREAKIN TO DETER SHOPLIFTERS HE PAYS A GUARD 200 A WEEK TO SIT BY THE DOOR LIKE MOST HARLEM STOREOWNERS MR ORAMA LOWERS A HEAVY METAL GATE OVER HIS STOREFRONT EACH NIGHT IT'S A GOOD BLOCK BUT WE HEAR ABOUT STORES BEING HELD UP ALL THE TIME SAYS MARIE RUNYON DIRECTOR OF HARLEM RESTORATION PROJECT INC THE PROJECT IS RENOVATING A NEARBY WAREHOUSE THAT WILL OFFER SMALL BUSINESSES LOW RENTS AND SHARED OFFICE SERVICES MS RUNYON VOWS WE WILL TAKE EVERY MEASURE THAT WE CAN TO MAKE SURE THE TENANTS ARE SECURE 9402280142 940228 FOREIGN EXCHANGE DOLLAR EASES AGAINST YEN AFTER THE G7 FAILS TO TAKE ACTION ON CURRENCY RATES A WALL STREET JOURNAL NEWS ROUNDUP THE DOLLAR EASED AGAINST THE YEN IN EARLY TRADING MONDAY ON THE HEELS OF THE WEEKEND MEETING OF ECONOMIC OFFICIALS FROM THE MAJOR INDUSTRIAL NATIONS THE GROUP OF SEVEN NATIONS MEETING IN GERMANY TOOK NO ACTION ON CURRENCY RATES MOREOVER THE US AND JAPAN MADE NO PROGRESS TOWARD A RESOLUTION OF THEIR TRADE DISPUTE TRADE TALKS BETWEEN WASHINGTON AND TOKYO BROKE DOWN ON FEB 11 CAUSING THE YEN TO STRENGTHEN SIGNIFICANTLY AGAINST THE DOLLAR AMID A BELIEF IN THE MARKET THAT THE US FAVORED A STRONG JAPANESE CURRENCY AS THE YEN RISES JAPANESE EXPORTS BECOME MORE EXPENSIVE IN TERMS OF OTHER CURRENCIES AND IMPORTS TO JAPAN BECOME LESS EXPENSIVE LAST WEEK THE DOLLAR GENERALLY STABILIZED AGAINST THE YEN NOW THE G7 MEMBERS ARE LEAVING IT UP TO THE MARKET TO DECIDE WHAT TO DO WITH THE YEN SAID DENNIS PETITT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK IN EARLY ASIANPACIFIC TRADING MONDAY THE DOLLAR WAS QUOTED AT 10415 YEN DOWN FROM 10485 YEN IN NEW YORK FRIDAY THE FRIDAY LEVEL WAS ITSELF DOWN FROM 10495 YEN THURSDAY THE DOLLAR ALSO STOOD AT 17100 MARKS ON FRIDAY DOWN FROM 17172 MARKS ON THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10410 YEN AND AT 17085 MARKS IT LOOKS LIKE THE JAPANESE TRADEIMBALANCE SITUATION DIDN'T GET ANY BETTER AT THE G7 SESSION SAID MICHAEL FAUST VICE PRESIDENT AND FOREIGNEXCHANGE MANAGER AT BAILARD BIEHL & KAISER A SAN FRANCISCO INVESTMENT FIRM BUT HE SAID GIVEN THAT THE MARKET IS LOOKING AT A BROAD RANGE OF 100 TO 110 YENDOLLAR EXCHANGE RATE THERE SHOULD BE NO IMMEDIATE SHARP SELLING OF THE DOLLAR HE ADDED G7 MEETINGS ARE HISTORICALLY DISAPPOINTING AS FAR AS THE FOREIGNEXCHANGE MARKETS ARE CONCERNED AND GIVEN THE LOW EXPECTATIONS IN THE MARKET TO BEGIN WITH I'LL BE SURPRISED BY A BIG MOVE OFF THE DOLLAR THIS WEEK 9402280141 940228 BUSINESS BRIEF MCKESSON TO PAY US 765000 TO SETTLE FALSECLAIMS CHARGES PORTLAND ORE US PROSECUTORS SAID MCKESSON CORP AGREED TO PAY 765000 TO THE GOVERNMENT TO SETTLE CHARGES THAT A UNIT SUBMITTED ALLEGEDLY FALSE CLAIMS TO OREGON'S MEDICAID PROGRAM JACK WONG US ATTORNEY FOR OREGON SAID MCKESSON'S 3PM DIVISION A THIRDPARTY BILLER FOR MEDICAID CLAIMS FOR 44 OREGON PHARMACIES SUBMITTED MORE THAN 353000 ALLEGEDLY FALSE CLAIMS FOR BRAND MEDICALLY NECESSARY PRESCRIPTIONS SUCH PRESCRIPTIONS REQUIRE BRANDNAME DRUGS RATHER THAN USUALLY CHEAPER GENERIC ONES THE PRESCRIPTIONS REQUIRE CERTIFICATION FROM PHYSICIANS MR WONG ALLEGED THAT 3PM DIDN'T HAVE THOSE CERTIFICATIONS RESULTING IN MEDICAID PAYING THE PHARMACIES MORE THAN THEY WERE ENTITLED TO GET MR WONG SAID THE ALLEGEDLY FALSE CLAIMS RESULTED IN OVERPAYMENTS TOTALING 461000 IN A STATEMENT MCKESSON ACKNOWLEDGED THAT SOME OVERPAYMENTS OCCURRED BUT SAID THEY WERE CAUSED BY A COMPUTERSOFTWARE ERROR MCKESSON SAID THAT IT CORRECTED THE SOFTWARE PROBLEM UPON DISCOVERING IT AND THAT THE COMPANY DIDN'T PROFIT FROM THE OVERPAYMENTS MCKESSON WHICH ALSO SELLS BOTTLED WATER AND CARCARE PRODUCTS SAID IT AGREED TO THE SETTLEMENT RATHER THAN TRYING TO MAKE ITS CUSTOMERS THE PHARMACIES REIMBURSE THE GOVERNMENT THE CASE IS THE SECOND RECENT INSTANCE IN WHICH LARGE COMPANIES HAVE AGREED TO SIGNIFICANT SETTLEMENTS OF FALSEBILLING CHARGES IN OREGON LAST SUMMER PAY LESS CORP AGREED TO PAY 1 MILLION TO SETTLE SIMILAR ALLEGATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY MCKESSON SHARES ROSE 875 CENTS TO 64125 9402280140 940228 EXIM BANK HAS ARM TO FINANCE INFRASTRUCTURES NEW SERVICE SET TO SUPPORT ACTIVITIES OF US FIRMS IN LARGE GLOBAL PROJECTS BY EDUARDO LACHICA SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE US EXPORTIMPORT BANK IS CREATING A NEW PROJECTFINANCING ARM TO SUPPORT THE PARTICIPATION OF AMERICAN COMPANIES IN THE GLOBAL INFRASTRUCTURE MARKET ASIA WILL BE A SIGNIFICANT BENEFICIARY OF THE NEW SERVICE BECAUSE IT IS TURNING MORE AND MORE TO THE PRIVATE SECTOR TO BUILD POWER STATIONS INDUSTRIAL PLANTS AIRPORTS AND OTHER LARGE PROJECTS SAID KENNETH BRODY THE BANK'S CHAIRMAN ASIAN GOVERNMENTS ARE ALL LOOKING TO PUT LESS DEBT ON THEIR BALANCE SHEETS SO THEY ARE LOOKING TO THE PRIVATE SECTOR FOR HELP MR BRODY SAID IN AN INTERVIEW THE NEW PROJECTFINANCE GROUP IS INTENDED TO ASSIST US COMPANIES MANAGING OR EQUIPPING THESE PROJECTS MR BRODY IS LEAVING FOR CHINA NEXT WEEK TO DISCUSS AMONG OTHER THINGS THE POTENTIAL USE OF SUCH FINANCING WITH CHINESE OFFICIALS AND REPRESENTATIVES OF US EXPORTERS FINANCING THIS KIND OF PROJECT IS RISKIER THAN THE EXIM BANK'S TRADITIONAL LENDING BUT SUCH PROJECTS ARE A GROWING PART OF THE ASIAN BUSINESS OF US CAPITALGOODS SUPPLIERS THE ASIAN DEVELOPMENT BANK ESTIMATES INDONESIA AND THAILAND ALONE WILL BUILD MORE THAN 40 BILLION IN POWER CAPACITY MOSTLY THROUGH PRIVATESECTOR INITIATIVES BY THE YEAR 2000 THE EXIM BANK SO FAR HAS HAD ONLY LIMITED EXPERIENCE IN THIS KIND OF FINANCING MR BRODY HOWEVER POINTED TO ITS SUPPORT OF THE PHILIPPINES' LARGEST POWER PROJECT THE 933 MILLION 700MEGAWATT PAGBILAO PLANT AS A SUCCESSFUL EXAMPLE THREE OFFICIAL LENDERS THE ASIAN DEVELOPMENT BANK THE LONDONBASED COMMONWEALTH DEVELOPMENT CORP AND THE WORLD BANK'S INTERNATIONAL FINANCE CORP HAVE A TOKEN 13 SHARE IN THE PROJECT BUT THE BULK OF THE EQUITY IS PRIVATELY HELD BY A PHILIPPINE AFFILIATE OF THE HONG KONG DEVELOPER HOPEWELL HOLDINGS LTD MR BRODY SAID THE NEW FINANCING UNIT IS PART OF HIS PLAN TO REINVENT THE EXIM BANK A FEDERAL LENDING INSTITUTION CHARTERED TO SUPPORT US EXPORTS WITH LOANS LOAN GUARANTEES AND IN CERTAIN CASES DIRECT GRANTS WE WANT EXPORTERS LOOKING FOR THIS KIND OF FINANCE TO COME TO THE BANK AS THEIR FIRST STOP AND NOT AT THE BACK END OF THE TRANSACTION MR BRODY SAID HE SAID THE NEW UNIT WILL BE HEADED BY A PROJECTFINANCE SPECIALIST TO BE RECRUITED FROM THE PRIVATE SECTOR OR FROM ONE OF THE MULTILATERAL LENDING AGENCIES THERE ARE LIMITS TO THE BANK'S OVERALL EXPOSURE BUT MR BRODY BELIEVES IT CAN GREATLY EXPAND THIS NEW ACTIVITY BY CHARGING THE APPROPRIATE INTEREST RATES FOR THESE HIGHERRISK GUARANTEES OR BY SYNDICATING LARGE PORTIONS OF THE RISKS INVOLVED TO INVESTORS AND COMMERCIAL LENDERS THE NEED FOR US EXPORTERS TO REMAIN COMPETITIVE IN ASIA IS DRIVING YET ANOTHER ASPECT OF THE BANK'S CURRENT REORGANIZATION THE BANK IS CREATING A SEPARATE GROUP TO SUPPORT THE OVERSEAS SALES OF US AIRCRAFT AND AIRCRAFT COMPONENTS MUCH OF WHICH NOW GO TO ASIAN AIRLINES MR BRODY ACKNOWLEDGED THAT RECENT US AIRCRAFT SALES TO ASIA WERE WON IN THE FACE OF STIFF COMPETITION FROM AIRBUS INDUSTRIE THE EUROPEAN PLANEMAKING CONSORTIUM AND THAT THE INTERESTED EUROPEAN GOVERNMENTS STAND READY TO BACK AIRBUS SALES WITH ATTRACTIVE EXPORT FINANCING MR BRODY WILL BE THE FIRST US EXIM BANK HEAD TO VISIT CHINA SINCE THENCHAIRMAN JOHN BOHM WENT THERE IN 1986 HE SAID HE EXPECTS TO MEET OFFICIALS FROM THE FINANCE AND TRADE MINISTRIES AND FROM THE PEOPLE'S BANK OF CHINA AS WELL AS BEIJINGBASED US BUSINESS REPRESENTATIVES 9402280139 940228 WESTINGHOUSE TO BUY UNITED TECHNOLOGIES' NORDEN SYSTEMS UNIT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT AGREED TO PURCHASE NORDEN SYSTEMS INC FROM UNITED TECHNOLOGIES CORP HARTFORD CONN TERMS OF THE PACT WEREN'T DISCLOSED WESTINGHOUSE CHARACTERIZED THE PURCHASE OF THE RADAR AND AIRTRAFFIC CONTROL CONCERN AS PART OF ITS PREVIOUSLY ANNOUNCED PLAN TO BUILD CERTAIN CORE BUSINESSES AT THE SAME TIME WESTINGHOUSE HAS BEEN INVOLVED IN A DIVESTITURE PLAN INCLUDING ABOUT 145 BILLION IN ASSET SALES THUS FAR THIS YEAR NORDEN WITH ABOUT 1600 EMPLOYEES AND 220 MILLION IN ANNUAL SALES WILL BECOME PART OF WESTINGHOUSE ELECTRONIC SYSTEMS WHICH IS INVOLVED IN RADAR ELECTRONIC SURVEILLANCE AIRTRAFFIC CONTROL AND COMMAND AND CONTROL SYSTEMS BALTIMOREBASED WESTINGHOUSE ELECTRONIC SYSTEMS HAS ABOUT 26 BILLION IN ANNUAL SALES AND ABOUT 14000 EMPLOYEES ACCORDING TO WESTINGHOUSE NORDEN WILL PROVIDE A NEW SET OF CUSTOMERS AND A COMPLEMENTARY SET OF PRODUCTS INCLUDING A DIFFERENT TYPE OF AIRTRAFFIC CONTROL SYSTEM NORDEN'S LONGTIME DOMESTIC AND INTERNATIONAL INVOLVEMENT IN AIRBORNE AND SHIPBOARD RADAR SYSTEMS AS WELL AS ANTISUBMARINE WARFARE SYSTEMS WILL HELP STRENGTHEN OUR POSITION IN THE MILITARYELECTRONICS AREA SAID RICHARD A LINDNER PRESIDENT OF WESTINGHOUSE ELECTRONICS SYSTEMS UNITED TECHNOLOGIES TRIED TO SELL ITS NORDEN UNIT IN THE LATE 1980S BUT AFTER A 16MONTH EFFORT TO PEDDLE THE DIVISION WHICH HAD LOSSES OF MORE THAN 300 MILLION IN THE MID1980S UNITED TECHNOLOGIES PULLED THE FIRM OFF THE MARKET VARIOUS RESTRUCTURING EFFORTS HAVE SLASHED EMPLOYMENT LEVELS FROM 3800 IN 1989 THE RADAR UNIT ALSO WAS IMPLICATED IN A PENTAGON INFLUENCEPEDDLING SCANDAL IN THE 1980S UNITED TECHNOLOGIES SETTLED THE ALLEGATIONS BY PLEADING GUILTY AND PAYING A 6 MILLION FINE IN AUGUST 1992 YESTERDAY A UNITED TECHNOLOGIES SPOKESMAN CALLED THE PENTAGON CASE ANCIENT HISTORY WESTINGHOUSE SAID IT EXPECTS THE TRANSACTION SUBJECT TO US ANTITRUST REVIEW TO BE COMPLETED IN THE SECOND QUARTER 9402280138 940228 NORTHWEST AIR PAID 24 MILLION IN BONUSES TO TOP OFFICERS IN '93 MINNEAPOLIS NORTHWEST AIRLINES PAID ITS TOP FIVE OFFICERS BONUSES TOTALING NEARLY 24 MILLION IN 1993 A YEAR WHEN THE COMPANY NARROWLY AVERTED A BANKRUPTCYLAW FILING BY PERSUADING EMPLOYEES TO ACCEPT STEEP PAY CUTS JOHN H DASBURG THE AIRLINE'S PRESIDENT AND CHIEF EXECUTIVE RECEIVED A 1993 BONUS OF 450705 ON TOP OF HIS 463906 SALARY ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE FILINGS ARE RELATED TO A PLANNED INITIAL PUBLIC OFFERING OF THE NATION'S FOURTHLARGEST AIRLINE MR DASBURG ALSO RECEIVED A BONUS OF 750000 AS A SPECIAL ONETIME PAYMENT FOR HIS ROLE IN RESTRUCTURING THE COMPANY'S FINANCES IN 1992 AND 1993 THE BONUSES PROMPTED SOME GRIPES FROM UNION MEMBERS WHO ALONG WITH NONCONTRACT EMPLOYEES AGREED TO 886 MILLION IN WAGE CUTS LAST SUMMER TO HELP PREVENT A THREATENED BANKRUPTCY FILING BY NORTHWEST THE TOP OFFICERS TOOK SALARY REDUCTIONS OF NEARLY 20 AS PART OF THAT PLAN A NORTHWEST SPOKESMAN SAID IN EXCHANGE NORTHWEST'S EMPLOYEES INCLUDING MANAGERS RECEIVED A 342 STAKE IN THE COMPANY NORTHWEST VIEWS BONUSES AS NECESSARY INCENTIVES FOR MANAGEMENT SAID A SPOKESMAN FOR THE CARRIER ADDING THAT MR DASBURG'S 750000 PAYMENT WAS IN LIEU OF HIRING AN INVESTMENT BANKER TO HANDLE SUCH TASKS AS RENEGOTIATING LOAN OBLIGATIONS UNION REPRESENTATIVES HOLD THREE SEATS ON NORTHWEST'S BOARD AND A PILOTS UNION OFFICIAL SITS ON THE BOARD'S COMPENSATION COMMITTEE 9402280137 940228 PIEMONTE BETS ON SUPERMARKET PIZZA TO GIVE IT A LARGER PIECE OF THE PIE BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL GREENVILLE SC PIEMONTE FOODS INC IS BETTING THAT SUPERMARKET DELICATESSENS CAN BECOME A MAJOR FACTOR IN THE PIZZA BUSINESS IF THEY OFFER A HIGHQUALITY PRODUCT PIEMONTE UNTIL RECENTLY A SMALL BAKER OF PIZZA CRUSTS EXPECTS TO EXPAND RAPIDLY BY PROVIDING TOPQUALITY CRUSTS SAUCES AND TOPPINGS TO SUPERMARKET DELICATESSENS SAID VIRGIL L CLARK VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUPERMARKET PERSONNEL CAN QUICKLY ASSEMBLE THOSE INGREDIENTS INTO TASTECOMPETITIVE PIZZAS AND COMPETE HEADON WITH LEADING PIZZERIA RESTAURANT CHAINS FOR CARRYOUT ORDERS MR CLARK TOLD DOW JONES EARLY INDICATIONS ARE THAT THE APPROACH IS WORKING FOR PIEMONTE SALES FOR THE FISCAL YEAR ENDING MAY 28 WILL RISE MORE THAN 15 TO 31 MILLION MR CLARK SAID FROM A RESTATED 268 MILLION IN 1993 MR CLARK SAID HE'S SHOOTING FOR 40 MILLION OF SALES IN FISCAL 1995 BUT A LOT OF THINGS WILL HAVE TO HAPPEN FOR US TO MAKE THAT FIGURE EARNINGS GAINS WILL COME MORE SLOWLY HE SAID BECAUSE OF THE COST OF INTRODUCING NEW PRODUCTS HE EXPECTS FISCAL 1994 EARNINGS TO RISE MODESTLY TO 60 CENTS A SHARE OR SLIGHTLY HIGHER FROM A RESTATED 806102 OR 56 CENTS A SHARE IN 1993 IF THE COMPANY REACHES ITS 40 MILLION SALES TARGET FOR 1995 NET INCOME IS LIKELY TO CLIMB TO THE HIGH 60 CENTS TO LOW 70 CENTSASHARE RANGE HE SAID PIEMONTE'S RESULTS FOR FISCAL 1994 WERE RESTATED FOR THE ACQUISITION LAST FALL OF ORIGENA INC A SUBURBAN CHICAGO PIZZACRUST BAKER SHARE EARNINGS WERE ADJUSTED FOR A 5 STOCK DIVIDEND PAID LAST AUGUST ONE OF PIEMONTE'S MOST IMPORTANT NEW PRODUCTS IS FOCACCIA ITALIAN FLAT BREAD WHICH CAN BE SERVED AS PURCHASED OR USED AS A CRUST FOR DOITYOURSELF PIZZAS MR CLARK SAID THE COMPANY SUPPLIES PIZZA SAUCES AND TOPPINGS FOR SALE FROM THE SAME RACK ON WHICH THE BREAD IS DISPLAYED THE PRODUCT WHICH WAS INTRODUCED LAST OCTOBER IS OFFERED IN 1000 SUPERMARKETS HE SAID AND PROBABLY WILL BE IN 2000 STORES BY MAY 31 PIZZA IS A 20 BILLION TO 25 BILLION A YEAR INDUSTRY MR CLARK SAID THE THREE LARGEST PIZZA RESTAURANT CHAINS ACCOUNT FOR 10 BILLION OF THAT HE SAID WHILE SUPERMARKETS GARNER LESS THAN 10 OF PIZZA SALES THE QUALITY OF SUPERMARKET PIZZA HAS BEEN SACRIFICED FOR PRICE MR CLARK SAID HOUSEWIVES BUY SUPERMAKET PIZZA FOR THE KIDS AND THE BABY SITTER BUT THAT'S STARTING TO CHANGE THE EXECUTIVE SAID ABOUT 70 OF PIZZAS ARE EATEN AT HOME AND CONSUMERS ARE WILLING TO BUY A CARRYOUT PIZZA FROM A SUPERMARKET DELI INSTEAD OF A PIZZERIA IF THE TASTE IS COMPARABLE WE SEE AN OPPORTUNITY TO ASSIST THE SUPERMARKET IN OFFERING A TASTECOMPETITIVE PIZZA AT 7 TO 8 THAT TYPICALLY COSTS 10 AT A PIZZERIA HE SAID LAST FALL'S ACQUISITION OF ORIGENA IN EXCHANGE FOR 100000 SHARES OF PIEMONTE COMMON STOCK PROVIDED THE COMPANY WITH ITS SECOND BAKERY ESSENTIALLY DOUBLING OUR CAPACITY MR CLARK SAID WE'RE IN AN ACQUISITION MODE HE SAID AND ARE LOOKING FOR OTHER PIZZARELATED COMPANIES MR CLARK SAID HE DOESN'T SEE A NEED FOR ADDITIONAL FINANCING THE COMPANY IS EXPENSING THE COST OF NEW PRODUCT DEVELOPMENT AND INTRODUCTION HE SAID BECAUSE OF THE PLANS FOR RAPID EXPANSION PIEMONTE PLANS TO CONTINUE TO PAY STOCK DIVIDENDS RATHER THAN CASH HE SAID 9402280136 940228 REEBOK STOCK SALE COMPLETED STOUGHTON MASS REEBOK INTERNATIONAL INC CHAIRMAN PAUL FIREMAN AND HIS WIFE PHYLLIS COMPLETED THEIR SALE OF FOUR MILLION SHARES OF REEBOK STOCK FRIDAY AT 33125 APIECE RAISING 1325 MILLION THE SALE REDUCES THE FIREMANS' COMBINED STAKE IN THE COMPANY TO 17 FROM 21 MR FIREMAN NOW HOLDS 79 MILLION SHARES OR A 95 STAKE AND MRS FIREMAN HOLDS 63 MILLION SHARES OR 74 9402280135 940228 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN MARK M LITTLE WAS NAMED VICE PRESIDENT POWERGENERATION ENGINEERING AT THE GE INDUSTRIAL & POWER SYSTEMS UNIT MR LITTLE 41 YEARS OLD SUCCEEDS THOMAS C PAUL WHO BECOMES VICE PRESIDENT TECHNOLOGY AT THE UNIT MR LITTLE WAS PREVIOUSLY PRODUCT GENERAL MANAGER GASTURBINECOMBINED CYCLE FOR THE UNIT IN ADDITION CHARLES CASTINE 44 WAS NAMED VICE PRESIDENT CONSUMER SERVICE AT THE GE APPLIANCES UNIT HE SUCCEEDS DAVID COTE WHO WAS RECENTLY NAMED VICE PRESIDENT AND GENERAL MANAGER OF GE SILICONES AND ANDREAS M GEORGHIOU 44 WAS NAMED VICE PRESIDENT COMMERCIAL BUSINESS SERVICES AT GE AMERICAN COMMUNICATIONS INC A NEW POSITION MR GEORGHIOU WAS FORMERLY DIRECTOR BROADCAST SERVICES AT THE UNIT 9402280134 940228 A&P SETS PACT TO SELL HUGE PROCESSING PLANT TO MEGACENTER GROUP MONTVALE NJ GREAT ATLANTIC & PACIFIC TEA CO SAID IT AGREED TO SELL ITS HUGE FACILITY IN HORSEHEADS NY ONCE TAGGED AS THE WORLD'S LARGEST FOODPROCESSING PLANT TO MEGACENTER PARTNERS LP TERMS WEREN'T DISCLOSED AN A&P SPOKESMAN SAID MEGACENTER A NEW YORK INVESTMENT FIRM PLANS TO CONVERT THE PLANT INTO A WAREHOUSE FACILITY MEGACENTER WAS NOT IMMEDIATELY AVAILABLE FOR COMMENT IN THE MID1960S A&P WAS FLYING HIGH OPERATING ABOUT 6500 STORES AND IT OPENED THE 15 MILLION SQUARE FOOT PLANT IN 1965 CONSIDERED THE LARGEST FOODPROCESSING PLANT IN THE COUNTRY TO MAKE A&P PRIVATELABEL PRODUCTS BUT INSTEAD OF WIDENED GROWTH THE STORES BEGAN SUFFERING DECLINES IN THE 1970S BY 1982 THE PLANT WAS DOWN TO A FEW HUNDRED PEOPLE AND RUNNING AT JUST 20 OF CAPACITY IN 1982 THE PLANT WAS CLOSED AND HASN'T OPERATED SINCE GREAT ATLANTIC ENTERED NEGOTIATIONS WITH MEGACENTER LAST FALL AND EXPECTS TO COMPLETE THE TRANSACTION IN EARLY APRIL 9402280133 940228 SOME MUTUAL FUNDS PITCH BRAND NAMES MORE THAN PRODUCTS GROUPS TRYING TO STAND OUT AMONG MANY PUSH IMAGE TO INVESTORS THROUGH ADS BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK THESE ARE RECENT COMMERCIALS FOR MUTUAL FUNDS WHITEHAIRED LADIES BAKING PIES A MAN FISHING WITH HIS GRANDSON AND A YOUNG VETERINARIAN DELIVERING A COLT WHILE THE VET'S PROUD FATHER WATCHES FUND GROUPS AREN'T PUSHING THEIR PRODUCTS SO MUCH AS THEY'RE PLUGGING THEIR NAMES WITH MORE THAN 4000 FUNDS AVAILABLE AND MANY TOUTED AS NO 1 IT'S HARD TO STAND OUT IN A CROWD ALLIANCE CAPITAL MANAGEMENT LP FOR ONE IS WIDELY KNOWN AMONG INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS BUT MARKET RESEARCH SHOWED THE NEW YORK FIRM'S NAME RECOGNITION WAS VIRTUALLY NONEXISTENT AMONG INDIVIDUAL INVESTORS SPOKESWOMAN LINDA FINNERTY SAID ALLIANCE CAPITAL WILL ATTEMPT TO CHANGE THAT STARTING MONDAY WITH CABLETELEVISION COMMERCIALS THE ADS ARE ALLIANCE CAPITAL'S LARGEST COMMERCIAL CAMPAIGN EVER THE COMPANY HIRED SOME BIG GUNS FOR THE ADS NEW YORK ADVERTISING AGENCY FERRELLCALVILLO CREATED THE THREE 30SECOND SPOTS THE DIRECTOR GREGORY HOBLIT HANDLES THE SAME DUTIES FOR THE TELEVISION SERIES NYPD BLUE JANUSZ KAMINSKI NOMINATED FOR AN ACADEMY AWARD FOR CINEMATOGRAPHY FOR SCHINDLER'S LIST WAS DIRECTOR OF PHOTOGRAPHY FOR THE COMMERCIALS ALLIANCE CAPITAL WITH 115 BILLION IN ASSETS OF WHICH 37 BILLION IS IN MUTUAL FUNDS ALSO IS PLUGGING THE BROKERS WHO SELL THE FUNDS MS FINNERTY SAID ALLIANCE CAPITAL'S FUNDS ARE DISTRIBUTED THROUGH NEARLY 70000 BROKERS INCLUDING THOSE AT MAJOR BROKERAGE HOUSES BANKS FINANCIAL PLANNERS AND INSURANCE AGENTS WITH EQUITABLE COS' EQUITABLE LIFE ASSURANCE UNIT EQUITABLE COS OWNS 63 OF ALLIANCE CAPITAL THE SPOTS MUTUAL FUNDS WITHOUT THE MYSTERY FOCUS ON THREE FACTORS THAT COMPLICATE INVESTING CRYPTIC AND CONFUSING FUND NAMES INFORMATION OVERLOAD AND INCOMPREHENSIBLE JARGON IN ONE COMMUTERS DISCUSS THEIR FUNDS SAYING THEY INVESTED IN THE HUSNEYFERRELL TINSLEY EMERGING DEVELOPING GLOBAL BALANCED BIOTECHNOLOGY FUND OR THE VASCO DEGAMA SPECIAL SELECT EMERGING MUNICIPAL SHORTTERM CONVERTIBLE INVERTED WORLD INCOME FUND YES THEY'RE FICTIONAL NAMES BUT THE COMMERCIAL TRIES TO PLAY ON HOW CONFUSING SOME FUND TITLES ARE DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SAID MUTUALFUND GROUPS SEE HOW THE BUSINESS IS CHANGING IT'S BECOMING MORE COMPETITIVE AND YOU HAVE TO CREATE AN IMAGE IT'S A SIGN OF WHERE THE MARKET IS HE SAID THOSE WHO WERE GOING TO BECOME INVESTORS HAVE DONE SO NOW THEY'RE TRYING TO BRANCH OUT AND REACH THOSE WHO HAVEN'T BEEN INVESTING FOR ONE REASON OR ANOTHER JOHN HANCOCK MUTUAL LIFE INSURANCE CO OF BOSTON HOPES ALL ITS PRODUCTS INCLUDING MUTUAL FUNDS WILL BENEFIT FROM ITS COMMERCIALS AIRING DURING THE OLYMPICS THAT FOCUS ON BRAND NAMES ONE SHOWS A KINGDOM OF ANIMALS COEXISTING PEACEFULLY AS THE VOICEOVER SAYS IT IS OUR HOPE THAT SOMEDAY THIS IS WHAT REAL LIFE WILL BE PRINCIPAL FINANCIAL GROUP OF DES MOINES IOWA HAS BEEN RUNNING COMMERCIALS THOROUGHOUT THE OLYMPICS THE INSURER WITH 44 BILLION IN ASSETS UNDER MANAGEMENT HAS A LARGE NICHE IN PENSIONFUND MANAGEMENT BUT IS UNRECOGNIZED BY A MAJORITY OF AMERICANS SAID MARY O'KEEFE A VICE PRESIDENT THE COMMERCIALS PUSH ALL OF PRINCIPAL'S PRODUCTS INCLUDING MUTUAL FUNDS WHICH ACCOUNT FOR 2 BILLION IN ASSETS UNDER MANAGEMENT THE PRINCIPAL COMMERCIALS DEPICT RELATIONSHIPS BETWEEN PEOPLE AND THE IDEA THAT THEY DO FINANCIAL PLANNING BECAUSE OF THE PEOPLE IN THEIR LIVES MS O'KEEFE SAID THE PRINCIPAL NAME IS MENTIONED EIGHT TIMES IN THE 30SECOND SPOTS THAT ARE WARM AND EASY TO WATCH BUT HAPPY FAMILY ADVERTISING MIGHT NOT BE EFFECTIVE SAID HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON NJ IT MIGHT BE MORE EFFECTIVE TO FOCUS ON THE PROBLEMS PEOPLE FACE IF THEY DON'T INVEST MR ROSS SAID LAST YEAR KEMPER FINANCIAL SERVICES A UNIT OF KEMPER CORP UNVEILED TWO COMMERCIALS THAT PROMOTING MUTUAL FUNDS FOR LONGTERM INVESTMENT PLANNING IN A SPOT SHOWING A MAN SMILING PROUDLY AS HIS VETERINARIAN DAUGHTER DELIVERS A COLT THE VOICEOVER TELLS HOW HE INVESTED EARLY TO PAY FOR VET SCHOOL LAST FALL DREYFUS CORP INTRODUCED FOUR COMMERCIALS THAT FOCUSED ON ITS BRAND NAME NOT ONCE DID THEY MENTION A SPECIFIC DREYFUS FUND IN ONE SPOT WHITEHAIRED LADIES BAKE PIES AND CHANT STOCKS BONDS MONEY MARKETS WHILE SHARING THEIR MOTTO DIVERSITY IS THE SPICE OF LIFE THOSE COMMERCIALS HAVE BEEN REPLACED BY SPOTS FEATURING DREYFUS' FAMOUS LION IN WHICH A CUB GROWS INTO AN ADULT SIGNIFYING INVESTING NEEDS TO BE DONE OVER TIME DREYFUS ALSO PLUGS SPECIFIC PRODUCTS MORNINGSTAR'S MR PHILLIPS SAID SUCH IMAGE COMMERCIALS BY FUND GROUPS SHOULD BE LAUDED THEY'RE SAYING INVESTING CAN BE A PART OF YOUR LIFE AND THAT IT DOESN'T HAVE TO BE OVERWHELMING HE SAID 9402280132 940228 PEOPLES FIRST PLANS ACQUISITION PADUCAH KY PEOPLES FIRST CORP SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE LIBSAB BANCORP FOR ABOUT 296 MILLION IN STOCK SHAREHOLDERS OF LIBSAB THE PARENT OF LIBERTY BANK & TRUST WILL RECEIVE 13101 SHARES IN PEOPLES FIRST FOR EACH SHARE HELD THE ACQUISITION WHICH REQUIRES REGULATORY AND SHAREHOLDER APPROVAL IS EXPECTED TO TAKE PLACE EARLY IN THE THIRD QUARTER THE COMPANIES SAID AS OF DEC 31 LIBERTY BANK & TRUST MAYFIELD KY HAD ASSETS OF 1417 MILLION AND PEOPLES FIRST HAD ASSETS OF 837 MILLION 9402280131 940228 COMPUTER TASK GROUP INC BUFFALO NY COMPUTER TASK GROUP INC SAID IT REACHED AN AGREEMENT TO REPURCHASE 500000 OF ITS SHARES HELD BY INTERNATIONAL BUSINESS MACHINES CORP FOR ABOUT 35 MILLION THE REPURCHASE WILL REDUCE IBM'S STAKE IN THE INFORMATION TECHNOLOGY SERVICES COMPANY TO 91 FROM 15 IBM ACQUIRED 14 MILLION SERIES B CONVERTIBLE PREFERRED STOCK IN 1989 AS PART OF THE CURRENT TRANSACTION IBM CONVERTED ITS ENTIRE STAKE INTO COMPUTER TASK GROUP COMMON STOCK ON A 1FOR1 BASIS 9402280130 940228 WHO'S NEWS COMPAQ COMPUTER CORP COMPAQ COMPUTER CORP HOUSTON GEORGE H HEILMEISER 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRIVATELY HELD BELLCORE WAS ELECTED TO THE BOARD OF THIS COMPUTER COMPANY INCREASING THE BOARD'S SIZE TO EIGHT 9402280129 940228 INTERNATIONAL BRAZIL'S NEW ANTIINFLATION STRATEGY HAS EVEN THE FINANCE MINISTER CONFUSED BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO BRAZIL'S GOVERNMENT IS ABOUT TO IMPLEMENT YET ANOTHER STABILIZATION PLAN TO CURB RUNAWAY INFLATION BUT THERE'S A PROBLEM FEW SEEM TO UNDERSTAND IT READING THE NEWSPAPERS I CAN'T UNDERSTAND MYSELF WHAT I'M ABOUT TO DO FINANCE MINISTER FERNANDO HENRIQUE CARDOSO WAS QUOTED AS SAYING JOIN THE CLUB I GOT IT BUT I DIDN'T UNDERSTAND IS HOW BUSINESS MAGAZINE EXAME SUMMED UP THE GENERAL PERPLEXITY HERE AS THE GOVERNMENT PREPARES TO DETAIL TODAY HOW IT INTENDS TO PHASE IN A NEW CURRENCY THE CENTERPIECE OF THE PLAN IN THE PAST FEW DAYS THERE HAVE BEEN SO MANY CONFUSING ACTIONS BY CONGRESS CONTRADICTORY STATEMENTS BY OFFICIALS AND CONFLICTING MEDIA ACCOUNTS THAT THE FINANCE MINISTRY'S ADVISER ON PRICES MILTON DALLARI HAS HELD AS MANY AS FIVE MEETINGS WITH BUSINESSMEN TO TRY TO ANSWER THEIR QUESTIONS ONE SAO PAULO EXECUTIVE HAS FORBIDDEN HIS STAFF FROM STUDYING THE PROPOSED MEASURES BECAUSE HE SEES IT AS A WASTE OF TIME EVERY DAY COMES SOMETHING NEW SAYS SERGIO HABERFELD CHAIRMAN OF THE TOGA PACKAGING GROUP EXPLAINING WHY HE HAS BANNED HIS ADVISERS FROM CARRYING OUT STUDIES AND SIMULATIONS THERE'S NO USE PREPARING TO PLAY FOOTBALL IF THE GOVERNMENT IS GOING TO ANNOUNCE WE'RE PLAYING TENNIS IN FACT THE OUTLINE OF THE PLAN HAS BEEN KNOWN SINCE DECEMBER AND IT SEEMS RELATIVELY STRAIGHTFORWARD ESCHEWING BRAZIL'S TRADITIONAL RECIPE OF WAGEANDPRICE FREEZES AND OTHER PYROTECHNICS SUCH AS TEMPORARILY CONFISCATING ASSETS THE GOVERNMENT INTENDS TO ATTACK BRAZIL'S 37 MONTHLY INFLATION THROUGH A MIXTURE OF FISCAL ORTHODOXY AND MONETARY MAGIC IN A FIRST STAGE THE GOVERNMENT INTENDS TO WIPE OUT WHAT MANY SEE AS THE BASIC CAUSE OF INFLATION GAPING DEFICITS BY ENACTING A BALANCED BUDGET THEN IT INTENDS TO INTRODUCE A NEW INFLATION INDEX THAT WILL PROGRESSIVELY BE TURNED INTO A CURRENCY BRAZIL'S SIXTH IN EIGHT YEARS IMPLEMENTATION HOWEVER IS ANOTHER MATTER THE GOVERNMENT APPEARED TO MAKE A BIG STRIDE FORWARD TOWARD A BALANCED BUDGET WHEN A 155 BILLION EMERGENCY SOCIAL FUND WAS APPROVED BY CONGRESS LAST WEEK BUT CONGRESS FAILED TO PASS THE LEGISLATION ALLOWING THAT FUND TO COME INTO EFFECT IMMEDIATELY AND UNLESS THIS IS DONE BY MARCH 1 THE GOVERNMENT COULD LOSE A MONTH'S WORTH OF TAX REVENUE MOREOVER THE FUND ITSELF WAS CUT BY ABOUT 600 MILLION BECAUSE OF POLITICAL BARGAINING AND THE GOVERNMENT NOW HAS TO REVISE THE 1994 BUDGET FOR THE THIRD TIME STAGE 2 INTRODUCING A NEW INFLATION INDEX IS PROVING EVEN MORE COMPLICATED THE BASIC IDEA IS TO CREATE A STABLE REFERENCE POINT FOR BRAZIL'S PRICES BY INTRODUCING A UNIT OF ACCOUNT TO BE CALLED THE REAL VALUE UNIT KNOWN BY THE ABBREVIATION URV THE VALUE OF THAT UNIT WOULD FLUCTUATE DAILY LIKE A CURRENCY FOR INSTANCE A LOAF OF BREAD WOULD COST 1 URV BUT 1 URV COULD BE WORTH 1 CRUZEIRO REAL TODAY AND 11 CRUZEIROS REAIS THE NEXT DAY AS BRAZILIANS PROGRESSIVELY GET USED TO THIS NEW UNIT THE GOVERNMENT INTENDS TO PHASE OUT THE CRUZEIRO REAL AND MAKE THE URV ITS NEW CURRENCY HOPEFULLY A MORE STABLE ONE THAN THE CRUZEIRO REAL WHICH LOSES MORE THAN 1 OF ITS VALUE DAILY MR CARDOSO INITIALLY SAID THAT USE OF THE URV WOULDN'T BE COMPULSORY BUT OFFICIALS NOW SAY THAT ALL SALARIES WILL HAVE TO BE CONVERTED INTO URVS WHEN THE UNIT OF ACCOUNT IS INTRODUCED THIS WEEK AT THE SAME TIME HOWEVER PRICES WILL CONTINUE TO BE EXPRESSED IN CRUZEIROS REALS WHICH HAS WAGE EARNERS AND BUSINESSMEN COMPLETELY CONFUSED SINCE THE GOVERNMENT HASN'T YET ANNOUNCED THE PARITY BETWEEN THE URV AND CRUZEIRO REAL WORKERS DON'T KNOW WHETHER THEY WILL BE EARNING MORE LESS OR THE SAME AS OF NEXT WEEK UNIONS ARE ALREADY WARNING OF STRIKES IF THE CONVERSION LEADS TO A REAL DROP IN WAGES MOREOVER MANY BUSINESSES FEARING THAT THE GOVERNMENT MIGHT MAKE PRICES IN URVS COMPULSORY TOO HAVE BEEN MARKING UP THEIR PRICES PREVENTIVELY LEADING TO FEARS OF HIGHER INFLATION OTHER COMPANIES SAY BUSINESS HAS DRIED UP PENDING CLARIFICATION OF THE RULES OUR CLIENTS AREN'T BUYING OR ORDERING ANYTHING SAYS MIGUEL RIBEIRO PLANNING MANAGER OF BON ZON A RIO RUBBER AND TRADING COMPANY NOBODY UNDERSTANDS ANYTHING ABOUT THE URV 9402280128 940228 TECHNOLOGY COHERENT SUES TRIMEDYNE SANTA CLARA CALIF COHERENT INC SAID IT FILED A LAWSUIT CHARGING TRIMEDYNE INC WITH VIOLATING THREE PATENTS COVERING SOME OF COHERENT'S LASER SURGERY SYSTEMS THE SUIT WAS FILED IN US DISTRICT COURT IN SAN FRANCISCO TRIMEDYNE BASED IN IRVINE CALIF ALSO MAKES LASER SYSTEMS A TRIMEDYNE SPOKESMAN SAID THE COMPANY HADN'T YET SEEN THE COHERENT COMPLAINT BUT DIDN'T EXPECT IT TO HAVE ANY MATERIAL IMPACT ON ITS OPERATIONS IN NASDAQ STOCK MARKET TRADING FRIDAY TRIMEDYNE SHARES CLOSED AT 13875 DOWN 875 CENTS 9402280127 940228 INTERNATIONAL POWER STRUGGLE IN JAPAN STALLS TRADE ACTION BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHILE WASHINGTON WAITS FOR TOKYO TO TAKE ACTION AGAINST JAPAN'S HUGE TRADE SURPLUS JAPANESE LEADERS INSTEAD ARE TURNING THEIR ATTENTION TO A DOMESTIC POWER STRUGGLE THE CONFLICT WHICH IS ABOUT PERSONALITIES AS MUCH AS POLICY CENTERS ON APPARENT DISCORD BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND HIS CHIEF CABINET SECRETARY MASAYOSHI TAKEMURA JAPAN'S PRESS IS RIFE WITH SPECULATION THAT MR HOSOKAWA WILL REMOVE MR TAKEMURA FROM HIS POST AS SOON AS THIS WEEK AS PART OF HIS FIRST CABINET RESHUFFLE SINCE TAKING OFFICE LAST SUMMER THOUGH THE IMMEDIATE IMPACT OF SUCH A SHUFFLE PROBABLY WOULD BE LIMITED OBSERVERS SAY MR HOSOKAWA'S FRAGILE COALITION EVENTUALLY MAY BE SHAKEN BY POLITICAL SQUABBLING AND FOR THE US AND OTHER TRADING PARTNERS THE COALITION INFIGHTING MAY MEAN A LONGER WAIT FOR MEASURES TO BOOST JAPANESE IMPORTS MR HOSOKAWA HAS NO ROOM TO CONSIDER SERIOUSLY USJAPAN RELATIONS SAYS TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER BECAUSE OF THE TURMOIL MR TOSHIKAWA ADDS THE HOSOKAWA GOVERNMENT HASN'T TALKED ABOUT COMING UP WITH SPECIFIC CONCESSIONS TO PRESENT THE CLINTON ADMINISTRATION JAPAN'S HUGE TRADE SURPLUS AND ITS POLICIES FOR REDUCING IT HAVE COME UNDER EVEN CLOSER SCRUTINY SINCE USJAPAN TRADE TALKS BROKE DOWN EARLIER THIS MONTH IN MEETINGS IN GERMANY THIS WEEKEND FINANCE MINISTER HIROHISA FUJII FAILED TO CONVINCE US TREASURY SECRETARY LLOYD BENTSEN THAT JAPAN'S RECENTLY ANNOUNCED ECONOMIC STIMULUS MEASURES WILL SPUR DOMESTIC DEMAND ENOUGH TO SUBSTANTIALLY BOOST IMPORTS THE PACKAGE INCLUDES A ONEYEAR 547 TRILLION YEN 52 BILLION PERSONAL INCOMETAX CUT JAPANESE LEADERS PROMISE TO EXTEND THE TAX BREAK LATER THIS YEAR BUT A DEBATE OVER FINANCING COULD DELAY IT OR DERAIL THEIR PLANS JAPAN MAY SOON HAVE SOME MORE EXPLAINING TO DO THE INTERNATIONAL MONETARY FUND ESTIMATES THAT THE ECONOMIC MEASURES WILL REDUCE JAPAN'S CURRENTACCOUNT SURPLUS ONLY MARGINALLY THIS YEAR TO 1303 BILLION FROM 1314 BILLION IN 1993 WHAT'S MORE JAPAN'S BUDGET PLAN SUBMITTED FOR THE FISCAL YEAR STARTING APRIL 1 INCLUDES AN INCREASE IN THE NATIONAL PENSION CONTRIBUTION MADE BY WORKERS AND THEIR EMPLOYERS A LEADING BUSINESS DAILY THE NIHON KEIZAI SHIMBUN REPORTED THIS WEEKEND THAT THE INCREASE SLATED FOR OCTOBER WOULD PRODUCE A NET TAX INCREASE OF 13 TRILLION YEN A TAX INCREASE OF THAT SCALE WOULD EQUAL ROUGHLY ONEFOURTH THE SIZE OF THE TAX CUTAND WOULD PRESUMABLY CANCEL SOME OF THE PACKAGE'S STIMULATIVE EFFECT JAPANESE PENSION OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE NEWSPAPER'S ESTIMATE JAPAN HAS MADE SOME OVERTURES TO THE US BUT THEY PROBABLY WON'T BREAK THE STALEMATE LAST WEEK A NUMBER OF LEADERS BACKED THE IDEA OF SETTING A NONBINDING TARGET FOR CUTTING THE CURRENT ACCOUNT SURPLUS IN THE COMING YEAR BUT THE GOAL BEING BANDIED ABOUT 28 OF THE NATION'S GROSS DOMESTIC PRODUCT FROM 31 WOULD REPRESENT A VERY SMALL DECLINE ON FRIDAY MR TAKEMURA SAID THAT BY THE END OF MARCH THE GOVERNMENT WANTS TO PRESENT A SET OF UNILATERAL MARKETOPENING MEASURES THE SAME DAY JAPAN'S TRADE MINISTER CALLED ON AUTO COMPANIES TO HELP BOOST IMPORTS AND THE TRANSPORT MINISTRY SAID IT WILL DISPATCH AN OFFICIAL TO DETROIT TO EASE THE BURDENSOME IMPORTINSPECTION PROCESS THAT US AND OTHER FOREIGN CARS FACE WHEN THEY ENTER JAPAN FOR THE MOST PART HOWEVER JAPAN'S POLITICIANS HAVE BEEN DISTRACTED BY THE INTRIGUE WITHIN THE HOSOKAWA ADMINISTRATION THE HOSOKAWATAKEMURA RIFT COULD BE A SIGN OF TROUBLE AHEAD FOR THE SEVENPARTY COALITION THE GOVERNMENT HAS BEEN UNIFIED BY A SINGLE BELIEF THE NEED FOR POLITICAL REFORM NOW THAT A REFORM PACKAGE HAS BEEN WORKED OUT THE GLUE THAT BINDS THE SEVEN COALITION PARTIES IS WEAKENING TO BE SURE THE ALLIANCE HAS WEATHERED WORSE CRISES SINCE IT CAME TOGETHER LAST SUMMER MR TOSHIKAWA AND OTHER ANALYSTS BELIEVE MR HOSOKAWA COULD POSTPONE A CABINET SHUFFLE TO AVOID SPLITTING THE COALITION AND EVEN IF MR HOSOKAWA WERE TO DUMP MR TAKEMURA MEMBERS OF MR TAKEMURA'S OWN PARTY HAVE SAID THEY WOULD STILL REMAIN WITH THE COALITION THE BREACH BETWEEN MR HOSOKAWA AND MR TAKEMURA STEMS PARTLY FROM PERSONALITIES AND PARTLY FROM POLICY DIFFERENCES ON POLICY MR TAKEMURA'S SMALL MODERATE PARTY SAKIGAKE WANTS TO SEE THE FORTHCOMING REALIGNMENT OF POLITICAL PARTIES BRING ABOUT A THREEPARTY SYSTEM AND IT WANTS TO ALLY WITH THE SOCIALISTS MR HOSOKAWA APPEARS TO BE LEANING TOWARD A TWOPARTY SYSTEM UNDER WHICH THE CURRENT COALITION WOULD UNITE AGAINST A CONSERVATIVE OPPOSITION GROUP 9402280126 940228 USCALIFORNIA PLAN IS SET FOR QUAKERELIEF LENDING WASHINGTON THE FEDERAL HOUSING FINANCE BOARD ANNOUNCED A NOVEL TRANSACTION BETWEEN THE FEDERAL HOME LOAN BANK OF SAN FRANCISCO AND THE STATE OF CALIFORNIA DESIGNED TO PROVIDE DISCOUNTED FINANCING FOR EARTHQUAKERELIEF LENDING IN SOUTHERN CALIFORNIA CALIFORNIA WILL PURCHASE A 145 MILLION BOND ISSUE OF THE FEDERAL HOME LOAN BANK SYSTEM AND THE SAN FRANCISCO FEDERAL HOME LOAN BANK WILL LEND THE BOND PROCEEDS TO LOCAL FINANCIAL INSTITUTIONS TO PROMOTE MORTGAGE AND COMMERCIAL LENDING FOR LOWINCOME AND MODERATEINCOME HOUSEHOLDS AND NEIGHBORHOODS IN AREAS AFFECTED BY THE JAN 17 EARTHQUAKE CALIFORNIA TREASURER KATHLEEN BROWN SAID THE INITIATIVE MAKES FINANCIAL RESOURCES AVAILABLE SO PEOPLE CAN GET THE LOWINTEREST LOANS NEEDED TO BUY NEW HOMES REPAIR EXISTING ONES OR REBUILD THEIR BUSINESSES THE 145 MILLION WILL BE MADE AVAILABLE THROUGH FIVE LENDERS AMERICAN SAVINGS BANK STOCKTON COAST FEDERAL BANK LOS ANGELES A UNIT OF COAST SAVINGS FINANCIAL INC FIRST REPUBLIC THRIFT & LOAN SAN FRANCISCO A UNIT OF FIRST REPUBLIC BANCORP INC GLENDALE FEDERAL BANK GLENDALE AND HOME SAVINGS OF AMERICA IRWINDALE A UNIT OF HF AHMANSON & CO 9402280125 940228 CONGRESS FACES BATTLE TO CHANGE BANK OVERSIGHT FED WHITE HOUSE DISAGREE ON WAYS TO CONSOLIDATE REGULATION BY 4 AGENCIES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS IS ABOUT TO TACKLE THE JOB OF RESOLVING A POLICY AND TURF BATTLE BETWEEN THE CLINTON ADMINISTRATION AND THE FEDERAL RESERVE BOARD OVER HOW TO CONSOLIDATE REGULATION OF THE BANKING SYSTEM THE SENATE BANKING COMMITTEE WILL TAKE UP THE CONTROVERSY SCHEDULING FOUR DAYS OF HEARINGS ON THE CONSOLIDATION STARTING TOMORROW AND A SENIOR MEMBER OF THE HOUSE BANKING PANEL REP CHARLES SCHUMER D NY OFFERED A COMPROMISE PLAN LAST FRIDAY THE TREASURY DEPARTMENT HAS BEEN SEEKING AN ACCORD WITH THE FED TRYING TO MODIFY AND CLARIFY THE ADMINISTRATION PROPOSAL OF LAST NOVEMBER TO MELD THE BANKOVERVIEW FUNCTIONS OF FOUR AGENCIES INTO A SINGLE FEDERAL BANKING COMMISSION IN AN INTERVIEW TREASURY SECRETARY LLOYD BENTSEN SAID THAT DIFFERENCES WITH THE FED HAVE BEEN NARROWED AND THAT THE TWO SIDES ARE CLOSE ON SOME ISSUES BUT HE SAID NO AGREEMENT HAS BEEN REACHED MR BENTSEN WILL FLESH OUT DETAILS OF THE TREASURY'S NEWEST POSITION BEFORE THE SENATE BANKING COMMITTEE TOMORROW THOSE DETAILS INCLUDE GIVING THE FED POWER TO REGULATE JOINTLY WITH THE NEW BANKING COMMISSION 10 OF THE TOP 20 BANKING ORGANIZATIONS INCLUDING HOLDING COMPANIES AND A CROSSSECTION OF THE SMALLER STATECHARTERED BANKS THAT THE FED CURRENTLY REGULATES A TREASURY SPOKESWOMAN SAID BUT THE TREASURY HASN'T MET THE FED'S MAJOR CONCERNS JOHN LAWARE A FED GOVERNOR WHO HAS AUTHORED A FED COUNTERPROPOSAL SAID IN AN INTERVIEW AMONG THOSE CONCERNS THE FED CONTENDS THAT A SINGLE REGULATOR WOULD BE TOO POWERFUL AND UNRESPONSIVE TO MARKETPLACE CHANGES AND THAT THE FLEXIBILITY AND INNOVATION FOSTERING OF THE NATION'S DUAL FEDERALSTATE BANKING SYSTEM CAN'T SURVIVE WITH ONLY ONE FEDERAL AGENCY FURTHERMORE THE FED SAYS IT MUST MAINTAIN A SIGNIFICANT ROLE INVOLVING WRITING REGULATIONS AND HANDSON REGULATION OF THE 1000 BANKS AND 6300 HOLDING COMPANIES IT CURRENTLY CONTROLS OTHERWISE IT WILL BE UNABLE TO CARRY OUT ITS ECONOMIC RESPONSIBILITY TO FORESTALL OR MANAGE FINANCIAL CRISES FED CHAIRMAN ALAN GREENSPAN REITERATED IN A SPEECH TO THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA A WEEK AGO SEN DONALD RIEGLE D MICH AND REP HENRY GONZALEZ D TEXAS CHAIRMEN OF THE BANKING COMMITTEES HAVE BACKED THE ADMINISTRATION PLAN BUT MR BENTSEN SAID HE IS WILLING TO WORK WITH SEN RIEGLE AND HIS STAFF IN HAMMERING OUT A COMPROMISE WITH THE FED WE'RE READY AND WILLING TO WORK WITH ANYBODY ADDED THE FED'S MR LAWARE TO RESOLVE POLICY DIFFERENCES FOR FIXING THE CURRENT BALKANIZED REGULATORY SYSTEM NEW YORK SEN ALFONSE D'AMATO THE RANKING REPUBLICAN ON THE SENATE PANEL SAID IN AN INTERVIEW THAT HE WANTS TO RETAIN SOME OF THE FED'S REGULATORY INDEPENDENCE AND DOESN'T FULLY SUPPORT THE TREASURY POSITION A COMPROMISE IS THE ONLY WAY YOU'RE GOING TO GET ANY LEGISLATION HE SAID THE SCHUMER PROPOSAL SEEKS TO STRIKE A BALANCE BETWEEN THE FED AND TREASURY VIEWS MR SCHUMER SAID THAT AFTER TALKING TO BOTH SIDES IT SEEMS TO ME THAT THIS IS THE KIND OF COMPROMISE THAT BOTH SIDES CAN ACCEPT AND THAT I THINK THE CENTER IS GOING TO CONGEAL AROUND MR SCHUMER'S PLAN WOULD MAKE THE FED THE SOLE REGULATOR OF LARGE US BANKS WITH A SIGNIFICANT AMOUNT OF FOREIGN BANKING ACTIVITY AND OF THE US OPERATIONS OF FOREIGN BANKS DOING CONSIDERABLE US BUSINESS THOSE INTERNATIONALLY SIGNIFICANT BANKS POSE THE BIGGEST RISK TO THE STABILITY OF THE GLOBALLY INTEGRATED US FINANCIAL MARKETS HE SAID THE NEW BANKING COMMISSION WOULD HANDLE ALL OTHER BANK REGULATION UNDER MR LAWARE'S FED PROPOSAL THE FED WOULD SUPERVISE 8500 STATECHARTERED BANKS CURRENTLY UNDER THE WINGS OF THE FED OR THE FEDERAL DEPOSIT INSURANCE CORP AND WOULD CONTINUE TO SUPERVISE BANKHOLDING COMPANIES THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION WHICH REGULATE A COMBINED 5400 SAVINGSANDLOANS AND NATIONALLY CHARTERED BANKS WOULD BE COMBINED KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9402280124 940228 BANK OF SAN FRANCISCO SAN FRANCISCO BANK OF SAN FRANCISCO CO HOLDING CO SAID IT PLANS A PRIVATE PLACEMENT OF SECURITIES TO RAISE CAPITAL BANK OF SAN FRANCISCO POSTED A 1993 NET LOSS OF 102 MILLION OR 115 A SHARE 9402280123 940228 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BETHLEHEM STEEL CORP 12 MILLION SHARES VIA SALOMON BROTHERS INC BIOCRYST PHARMACEUTICALS INC INITIAL 25 MILLION SHARES VIA DILLON READ & CO AND NEEDHAM & CO CIDCO INC INITIAL 3350000 SHARES VIA ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES CONNECTICUT ENERGY CORP 900000 SHARES VIA SMITH BARNEY SHEARSON INC CRIIMI MAE INC 105 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP CYRK INC TWO MILLION SHARES VIA MONTGOMERY SECURITIES DF&R RESTAURANTS INC ONE MILLION SHARES VIA DEAN WITTER REYNOLDS INC FEDERAL EXPRESS CORP 380 MILLION OF PASSTHROUGH CERTIFICATES VIA GOLDMAN SACHS & CO INFOSOFT INTERNATIONAL INC INITIAL THREE MILLION SHARES VIA CS FIRST BOSTON CORP JARDINE FLEMING INDIA FUND INITIAL FOUR MILLION SHARES VIA PAINEWEBBER INC AND ROBERT FLEMING INC NEW SOUTH AFRICA FUND INC INITIAL FOUR MILLION SHARES VIA BEAR STEARNS & CO OVERSEAS SHIPHOLDING GROUP INC THREE MILLION SHARES VIA GOLDMAN SACHS ROCKTENN CO INITIAL 43 MILLION SHARES VIA MORGAN STANLEY & CO SCIENTIFIC GAMES HOLDING CORP 26 MILLION SHARES VIA ROBINSONHUMPHREY CO TRICON CAPITAL CORP INITIAL 135 MILLION SHARES VIA LEHMAN BROTHERS WHEATLEY TXT CORP FOUR MILLION SHARES VIA MERRILL LYNCH & CO AND CS FIRST BOSTON GEORGIA 2359 MILLION OF VARIOUS GENERAL OBLIGATION IMPROVEMENT BONDS VIA COMPETITIVE BID NEW YORK STATE 2241 MILLION OF GENERAL OBLIGATION IMPROVEMENT BONDS VIA COMPETITIVE BID NORFOLK VA 1827 MILLION OF SERIES 1994 IMPROVEMENT REFUNDING BONDS VIA COMPETITIVE BID CONNECTICUT 150 MILLION OF SERIES 1994A BONDS FOR TRANSPORTATION INFRASTRUCTURE PURPOSES VIA COMPETITIVE BID FULTON COUNTY SCHOOL DISTRICT GA 175 MILLION OF IMPROVEMENT BONDS VIA COMPETITIVE BID FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY VA 115 MILLION OF LEASEREVENUE BONDS VIA A MERRILL LYNCH GROUP NEW YORK STATE MORTGAGE AGENCY 2655 MILLION OF HOMEOWNER MORTGAGE REVENUE BONDS VIA A PRUDENTIAL SECURITIES INC GROUP WESTCHESTER COUNTY INDUSTRIAL DEVELOPMENT AGENCY NY 112 MILLION OF RESOURCE RECOVERY REFUNDING REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP 9402280122 940228 CREDIT RATINGS TROY NY MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED ITS RATING ON GENERAL OBLIGATION BONDS ISSUED BY THIS CITY ABOUT 35 MILLION OF UNINSURED GENERAL OBLIGATION DEBT WAS AFFECTED MOODY'S SAID THE REST OF TROY'S GENERAL OBLIGATION BONDS ARE INSURED AND ARE UNAFFECTED MOODY'S SAID MOODY'S DOWNGRADED THE BONDS TO SINGLEBA FROM SINGLEBAA CITING DETERIORATION IN THE CITY'S FINANCES TROY OFFICIALS COULDN'T BE REACHED FOR COMMENT 9402280121 940228 TRANSPORTATION SECRETARY PENA OPPOSED ETHANOL PLAN THEN PARTLY SHIFTED VIEW BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TRANSPORTATION SECRETARY FEDERICO PENA VOICED AND THEN PARTIALLY RETRACTED OPPOSITION TO A PROPOSED RULE THAT WOULD VIRTUALLY GUARANTEE ETHANOLBLENDED GASOLINE A FIXED MARKET SHARE THE ENVIRONMENTAL PROTECTION AGENCY IN DECEMBER PROPOSED REQUIRING THAT 30 OF GASOLINE SOLD UNDER AN EPA SMOGCLEANUP PROGRAM CONTAIN A RENEWABLE OXYGENATE WHICH IN NEARLY ALL CASES WOULD BE ETHANOL THE RULE FOLLOWED UP ON A CAMPAIGN PROMISE BY PRESIDENT CLINTON A FEB 14 LETTER SENT OVER MR PENA'S SIGNATURE TO WHITE HOUSE BUDGET DIRECTOR LEON PANETTA STATED I STRONGLY OPPOSE THE PROPOSED REGULATION THE LETTER ARGUED THAT THE RULE WOULD RESULT IN A LOSS TO THE FEDERAL HIGHWAY TRUST FUND OF AS MUCH AS 465 MILLION A YEAR BECAUSE ETHANOL RECEIVES TAX BREAKS UNAVAILABLE TO METHANOL ITS MAIN COMPETITOR IN THE SMOGREDUCING REFORMULATED GAS MARKET IT ALSO SAID THAT THE PROPOSED ETHANOL REQUIREMENT WOULD HAVE A NEGLIGIBLE IMPACT ON REDUCING OIL IMPORTS ONE OF ITS STATED GOALS AND THAT IT'S UNCERTAIN WHAT THE IMPACT WOULD BE ON GLOBAL WARMING WHEN CONTACTED FRIDAY A TRANSPORTATION DEPARTMENT SPOKESWOMAN SAID THE LETTER DOESN'T REFLECT MR PENA'S ACTUAL VIEWS THE AIDE JENNIFER WATSON READ THE FOLLOWING PREPARED STATEMENT THE SECRETARY SUPPORTS THIS POLICY AND IS A LONGSTANDING SUPPORTER OF ETHANOL WHEN STAFF INFORMED HIM THAT THERE COULD BE AN IMPACT ON THE HIGHWAY TRUST FUND HE ASKED THAT THE STAFF MAKE THE BUDGET OFFICE AWARE OF THE IMPACT BUT ALSO TO MAKE CLEAR THAT HE SUPPORTED THE OVERALL POLICY UNFORTUNATELY STAFF THEN DRAFTED A LETTER THAT WENT FAR BEYOND ANY INSTRUCTIONS THE SECRETARY HAD GIVEN THE LETTER WAS NOT SIGNED BY THE SECRETARY IT WAS SIGNED BY AN AUTOPEN AND IT WAS NOT AUTHORIZED BY HIM MR PENA'S LETTER CAME TO LIGHT AS 35 SENATORS INCLUDING BILL BRADLEY D NJ GEORGE MITCHELL D MAINE AND MALCOLM WALLOP R WYO WERE PREPARING TO SEND EPA ADMINISTRATOR CAROL BROWNER A LETTER VOICING OPPOSITION TO THE PROPOSED RULE THE EPA CURRENTLY IS REVIEWING PUBLIC COMMENTS ON THE PROPOSAL AND COULD PRODUCE A FINAL RULE AS EARLY AS JUNE THE RULE WOULD REQUIRE THAT ROUGHLY ONETENTH OF ALL GASOLINE SOLD IN THE US BE BLENDED WITH ETHANOL A SUBSTANTIAL BOON FOR ARCHERDANIELSMIDLAND CO THE POLITICALLY ACTIVE AGRICULTURE GIANT THAT MANUFACTURES 50 TO 70 OF ALL ETHANOL PRODUCED IN THE US ACCORDING TO INCOMPLETE 1993 RECORDS AT THE FEDERAL ELECTION COMMISSION ARCHERDANIELSMIDLAND WHICH TRADITIONALLY HAS FAVORED REPUBLICANS OVER DEMOCRATS GAVE THE DEMOCRATIC PARTY 46500 LAST YEAR SLIGHTLY MORE THAN THE 42500 IT GAVE THE REPUBLICAN PARTY THE RULE HAS STRONG SUPPORT IN THE MIDWEST BECAUSE IT WOULD PROVIDE AN EXPANDED MARKET FOR CORN FROM WHICH ETHANOL IS DERIVED THE CLINTON ADMINISTRATION HAS ARGUED THAT ANY LOSSES TO THE TREASURY WOULD BE OFFSET BY REDUCED AGRICULTURE DEPARTMENT PAYMENTS TO CORN GROWERS 9402280120 940228 FORMER OFFICIAL SENTENCED FINED FOR HUD CORRUPTION WASHINGTON DEBORAH GORE DEAN A TOP FEDERAL REAGAN ADMINISTRATION HOUSING OFFICIAL WAS SENTENCED TO 21 MONTHS IN PRISON ON 12 COUNTS OF CORRUPTION BRIBERY AND PERJURY MS DEAN WHO WAS EXECUTIVE ASSISTANT TO FORMER HOUSING AND URBAN DEVELOPMENT SECRETARY SAMUEL PIERCE ALSO WAS FINED 5600 BY FEDERAL DISTRICT COURT JUDGE THOMAS HOGAN IN WASHINGTON INDEPENDENT COUNSEL ARLIN ADAMS WHO PROSECUTED MS DEAN SAID THIS IS NOT SIMPLY YESTERDAY'S SCANDAL OUR NATION HAS PAID AND CONTINUES TO PAY A SUBSTANTIAL PRICE FOR THIS CORRUPTION OF HUD DEAN LIKE OTHER FORMER HUD APPOINTEES WE HAVE CONVICTED TOOK A HUD PROGRAM DESIGNED TO AID LOWINCOME FAMILIES AND INSTEAD MANIPULATED IT TO BENEFIT HER FAMILY HER FRIENDS AND HERSELF SO FAR 12 CONVICTIONS HAVE RESULTED FROM THE PROBE INTO THE HUD SCANDAL AMONG THOSE CONVICTED HAVE BEEN A FORMER US TREASURER THREE ASSISTANT HUD SECRETARIES ONE OF WHOM LATER BECAME AN AMBASSADOR AND TWO EXECUTIVE ASSISTANTS TO MR PIERCE HE HASN'T BEEN CHARGED IN A LETTER READ BY THE JUDGE DURING THE SENTENCING HEARING MS DEAN SAID POLITICAL INFLUENCE DOMINATED A HOUSING PROGRAM DESIGNED TO ASSIST THE POOR SHE SAID A HOUSINGREHABILITATION PROGRAM SHE WORKED WITH WAS LARGELY MAINTAINED TO DELIVER POLITICAL FAVORS FOR THE ADMINISTRATION AND THE CONGRESS 9402280119 940228 TECHNOLOGY PHARMACEUTICAL RESOURCES SANO SPRING VALLEY NY PHARMACEUTICAL RESOURCES INC SAID ITS PAR PHARMACEUTICAL UNIT ENTERED A LICENSING AGREEMENT WITH SANO CORP A MAKER OF PRODUCTS USING TRANSDERMAL DRUG DELIVERY SYSTEMS TERMS WEREN'T DISCLOSED THE EXCLUSIVE 10YEAR US LICENSING AGREEMENT IS FOR THE DISTRIBUTION OF GENERIC PHARMACEUTICAL PRODUCTS USING TRANSDERMAL DELIVERY PAR PHARMACEUTICAL A MAKER OF GENERIC DRUGS WILL PROVIDE FUNDING ASSISTANCE TO SANO OF FORT LAUDERDALE FLA FOR THE DEVELOPMENT OF PRODUCTS AND WILL PARTICIPATE IN THE GROSS PROFITS PHARMACEUTICAL RESOURCES SAID IT HAS ALSO SUBSCRIBED FOR A SMALL EQUITY POSITION IN SANO PENDING THE COMPLETION OF SANO'S PRIVATE PLACEMENT 9402280118 940228 TECHNOLOGY TECH DATA PLANS PURCHASE CLEARWATER FLA TECH DATA CORP IN A MOVE TO GAIN ACCESS TO EUROPEAN MARKETS SAID IT PLANS TO ACQUIRE A FRENCH CONCERN FOR ABOUT 22 MILLION IN STOCK THE COMPANY PARISBASED SOFTMART INTERNATIONAL SA IS A MAJOR WHOLESALE DISTRIBUTOR OF PERSONALCOMPUTER PRODUCTS ACCORDING TO TECH DATA WITH 1993 REVENUE OF 135 MILLION TECH DATA DIDN'T RELEASE EARNINGS DATA FOR THE CLOSELY HELD COMPANY BUT SAID SOFTMART HAS BEEN PROFITABLE SINCE ITS INCEPTION IN 1984 TECH DATA IS A COMPUTER WHOLESALER WITH ANNUAL REVENUE OF ABOUT 153 BILLION 9402280117 940228 INTERNATIONAL SINN FEIN CHIEF REFUSES TO BACK PEACE PLAN FOR NORTHERN IRELAND BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL TALLAGHT IRELAND FOR THE SECOND TIME IN A MONTH IRISH AND BRITISH EYES WERE ON GERRY ADAMS PRESIDENT OF SINN FEIN THE POLITICAL WING OF THE OUTLAWED IRISH REPUBLICAN ARMY AND FOR THE SECOND TIME HE DASHED HOPES FOR AN EARLY END TO VIOLENCE IN NORTHERN IRELAND FOLLOWING HIS RECENT HIGHLY PUBLICIZED VISIT TO THE US MR ADAMS REFUSED AT SINN FEIN'S ANNUAL CONFERENCE IN THIS DUBLIN SUBURB OVER THE WEEKEND TO EMBRACE A JOINT BRITISHIRISH PEACE PLAN FOR NORTHERN IRELAND REITERATING THE PARTY'S HARDLINE POSITION HE TOLD CHEERING SUPPORTERS THAT THE PLAN WHILE A STEP FORWARD DOESN'T OFFER ENOUGH BRITISH CONCESSIONS TO GET THE IRA TO LAY DOWN ITS ARMS SO THAT SINN FEIN CAN ENTER NEGOTIATIONS ON THE FUTURE OF THE PROVINCE THE PROPOSAL HE DECLARED AMOUNTS TO A DEMAND FOR AN IRA SURRENDER AS A PRECONDITION TO DIALOGUE WITH SINN FEIN AS A RESULT IT INCREASINGLY APPEARS THAT THE TWO COUNTRIES WHICH UNVEILED THE PLAN WITH HIGH EXPECTATIONS DEC 15 MAY HAVE TO TRY TO PROCEED WITHOUT SINN FEIN TO KEEP THE INITIATIVE ALIVE A STRATEGY FRAUGHT WITH RISKS BUT CAN THAT WORK NO ONE KNOWS FOR SURE OF COURSE AND OPINIONS ARE DIVIDED DESPITE SINN FEIN'S POSITION AND DESPITE CONTINUED VIOLENCE BY CATHOLICS AND PROTESTANTS IN NORTHERN IRELAND OPTIMISTS SAY PEACE IS STILL POSSIBLE EVEN IF MANY NOW ARE TALKING IN TERMS OF YEARS AND NO LONGER IN TERMS OF WEEKS OR MONTHS MR ADAMS AND SINN FEIN MAY HAVE A HIGH PROFILE THE OPTIMISTS ARGUE BUT THEIR REFUSAL TO RENOUNCE VIOLENCE IS DRAWING A CHORUS OF CRITICISM IN IRELAND ACROSS THE STREET FROM THE DRAB CRAMPED COMMUNITY WHERE SEIN FINN MET FOR EXAMPLE PROTESTORS MARCHED CARRYING SIGNS THAT DEMAND STOP THE KILLING THEY'VE GOT LITTLE SUPPORT HERE INSISTED MICHAEL NUGENT CHAIRMAN OF NEW CONSENSUS A NONSECTARIAN GROUP OPPOSED TO VIOLENCE THE IDEAL IS THAT THEY WOULD BE INVOLVED IN PEACE TALKS BUT HAVING SAID THAT WE SHOULDN'T WAIT A VAST MAJORITY OF IRISH PEOPLE BELIEVE THE SOCALLED JOINT DECLARATION CONTAINS THE BASIS FOR PEACE TALKS BRITAIN AGREED TO EVENTUALLY PULL OUT OF NORTHERN IRELAND AND ALLOW UNIFICATION BUT ONLY WITH THE CONSENT OF ULSTER VOTERS A MAJORITY OF WHOM ARE PROTESTANT AND DON'T NOW FAVOR UNIFICATION A SURVEY PUBLISHED YESTERDAY BY THE SUNDAY INDEPENDENT NEWSPAPER IN DUBLIN SHOWED 94 IN IRELAND AND 85 IN ULSTER THINK SINN FEIN SHOULD RENOUNCE VIOLENCE AND JOIN NEGOTIATIONS IT IS TIME TO STOP PANDERING TO THE WHIMS OF A TINY PERCENTAGE OF THE POPULATION WHICH SUPPORTS VIOLENCE DO NOT BE AFRAID OF LEAVING SINN FEIN BEHIND THE NEWSPAPER SAID UNDER THE OPTIMISTS' SCENARIO PROGRESS CAN BE ACHIEVED BY RESTARTING STALLED NEGOTIATIONS WITH MODERATE CATHOLIC AND PROTESTANT PARTIES ALONG WITH THE TWO GOVERNMENTS MOVEMENT ON SUCH ISSUES AS ALLOWING MORE SELF RULE BY ULSTER NOW ADMINISTERED BY LONDON AND WAYS FOR DUBLIN TO PARTICIPATE IN THE PROVINCE WOULD MARGINALIZE SINN FEIN OR FORCE IT TO REJECT VIOLENCE THEY BELIEVE HOPEFULLY AS THEY SEE MOMENTUM FOR PEACE DEVELOPING EXPLAINS AN IRISH GOVERNMENT SOURCE THEY MAY AT SOME POINT BE TEMPTED TO JOIN THE BANDWAGON HE ADDS I DON'T SEE A QUICK FIX BUT I AM OPTIMISTIC IN THE LONG TERM FIVE TO 10 YEARS BUT THOSE WHO THINK PROGRESS CAN BE MADE WITHOUT SINN FEIN AND THE IRA MAY BE UNDERESTIMATING ITS RESILIENCE JUDGING FROM ITS CONFERENCE SINN FEIN APPEARS MORE CONFIDENT THAN EVER BASKING IN PUBLICITY SOME 250 JOURNALISTS COVERED THE MEETING VS FEWER THAN 50 LAST YEAR SPEAKERS OFFERED NO APOLOGIES FOR THEIR COMBATIVE STANCE OR THE IRA'S VIOLENCE HANGING ON THE WALLS OF THE MEETING HALL WERE PHOTOS OF DEAD IRA VOLUNTEERS WHO HAD CARRIED OUT ATTACKS INDEED FAR FROM BEING DEFENSIVE SINN FEIN VIEWS THE PEACE INITIATIVE FROM THE TWO GOVERNMENTS AS VINDICATION FOR ITS REFUSAL TO BUDGE ON KEY ISSUES MITCHEL MCLAUGHLIN THE PARTY'S NORTHERN IRELAND CHAIRMAN DISMISSED THE IDEA THAT PROGRESS CAN BE MADE WITHOUT SINN FEIN THEY'VE TRIED THAT BEFORE IF SINN FEIN IS EXCLUDED THERE CAN'T BE ANY PEACE HE SAID THEY'VE EXPERIENCED FAILURE AFTER FAILURE AS FOR SPECULATION THAT HARDLINERS AND MODERATES ARE DIVIDED OVER THE INITIATIVE SINN FEIN OFFICIAL MARTIN MCGUINNESS WON A ROUSING OVATION WHEN HE DECLARED DEFIANTLY THERE'S NOT THE SLIGHTEST POSSIBILITY OF A SPLIT MR ADAMS SIMILARLY DISMISSES SINN FEIN'S LACK OF POPULAR SUPPORT PUBLICOPINION POLLS AREN'T THE BASIS ON WHICH TO MOVE FORWARD HE SAID IN AN INTERVIEW SINN FEIN IS A SMALL PARTY BUT NOTWITHSTANDING THAT WE ARE A SIGNIFICANT FORCE IN HIS 93MINUTE SPEECH MR ADAMS OFFERED A FEW CONCILIATORY WORDS BUT LITTLE COMPROMISE THE BRITISH ARE IN NO DOUBT I AM SURE ABOUT THE CAPACITY AND COMMITMENT OF THE IRA HE SAID POINTEDLY 9402280116 940228 MARKETING & MEDIA BASEBALL NETWORK EXPECTS TO SEAL A SERIES OF SPONSORSHIPS NEARING 1994 TARGET BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL THE BASEBALL NETWORK IS EXPECTED TO ANNOUNCE A SERIES OF SPONSORSHIP DEALS OVER THE NEXT MONTH THAT WILL TAKE IT NEARLY HALF WAY TO ITS 1994 TARGET OF 180 MILLION IN TV AD SALES THE NETWORK A JOINT VENTURE OF MAJOR LEAGUE BASEBALL NBC AND ABC WAS CREATED LAST YEAR IN LIEU OF BASEBALL GETTING A GUARANTEED NETWORK RIGHTS FEE INSTEAD THE NETWORK SELLS TV SPOTS FOR ITS GAMES AND RETAINS THE LION'S SHARE OF THE AD REVENUE THE CONCEPT HAS HAD MANY SKEPTICS ON MADISON AVENUE THEY NOTE THIS ENTITY CAN'T OPERATE LIKE A CONVENTIONAL TV NETWORK PACKAGING UP SPOTS ON BASEBALL WITH OTHER PROGRAMMING ALL IT HAS TO SELL BY DEFINITION IS BASEBALL IN ADDITION THE NEW NETWORK HAS AGGRESSIVELY PRICED ADS FOR ITS PRIZE ATTRACTION THE WORLD SERIES AT OVER 300000 PER 30SECOND SPOT VERSUS THE 200000 RANGE OF CBS IN 1993 BUT AFTER A LONG FALLOW PERIOD THE BASEBALL NETWORK IS STARTING TO CLOSE DEALS WITH TEXACO INC AND RUSSELL CORP RECENTLY AND IMMINENTLY GATORADE BEFORE SPRING TRAINING ENDS ACCORDING TO PEOPLE FAMILIAR WITH ITS OPERATIONS THE NETWORK SHOULD BOOK AT LEAST 80 MILLION OF SALES ON TERMS THAT ARE WITHIN 6 PERCENT OF ITS ASKING PRICE NETWORK GAMES DON'T ACTUALLY BEGIN UNTIL THE JULY 12 ALLSTAR GAME I CAN'T CONFIRM ANY NUMBERS SAID NETWORK CHIEF KEN SCHANZER BUT THE RESPONSE TO THIS PACKAGE IN THE MARKETPLACE IN OUR MINDS HAS BEEN EXTRAORDINARY THAT DEFINITION OF SUCCESS STILL REPRESENTS A DEEP CUT IN THE SPORT'S NETWORK TV REVENUE IF THE NETWORK DOES GROSS ITS TARGETED 180 MILLION BASEBALL WOULD REALIZE ABOUT 140 MILLION THE NET FIGURE COMES AFTER ADAGENCY COMMISSIONS AND THE CUTS GOING TO GENERAL ELECTRIC CO'S NBC AND CAPITAL CITIES/ABC INC'S ABC THAT'S NEARLY 50 PERCENT LESS THAN WHAT CBS PAID IN THE LAST SEASON OF ITS DISASTROUS FOURYEAR 106 BILLION BASEBALL CONTRACT BUT MR SCHANZER A FORMER NBC SPORTS EXECUTIVE ARGUES THAT THE BASEBALL NETWORK IS WORKING BOTH IN ITS ABILITY TO COMMAND TOP DOLLAR IN ADVERTISING AND ITS UTILITY AS A ONESTOP SHOPPING POINT FOR ADVERTISERS THE NETWORK WAS EMPOWERED BY BASEBALL'S OWNERS NOT ONLY TO SELL TV ADS BUT MORE BROADLY MARKET THE GAME THE COMMON DENOMINATOR OF ITS DEALS SO FAR IS PACKAGING UP TV TIME AND OTHER FORMS OF SPONSORSHIP RUSSELL COMBINED ITS TV BUY WITH CONTINUING AS BASEBALL'S OFFICIAL UNIFORM PROVIDER WHILE NEWCOMER TEXACO WAS HOOKED BY THE CHANCE TO SPONSOR ALLSTAR BALLOTING BALLOTS TO CHOOSE PLAYERS WILL BE AVAILABLE ONLY AT BALLPARKS AND TEXACO STATIONS AND VOTING COINCIDES WITH THE START OF THE PEAK SUMMER DRIVING SEASON THIS WAS A PROGRAM THAT WOULD NOT JUST MAKE PEOPLE THINK OF TEXACO BUT WOULD PULL THEM IN OUR STATIONS TO DO SOMETHING SAYS TOM MATTHEWS PRESIDENT OF TEXACO REFINING AND MARKETING INC GATORADE AN INCUMBENT SPONSOR WAS PREPARED TO WALK AWAY FROM BASEBALL WHOSE AUDIENCE WAS SKEWING HIGH IN AGE ACCORDING TO ITS SPORTSMARKETING VICE PRESIDENT BILL SCHMIDT BUT THE NETWORK NOW IS POISED TO KEEP THIS QUAKER OATS CO UNIT IN THE FOLD BY COMBINING A BIG TV BUY WITH A BIG VISIBLE PRESENCE OF GATORADE COOLERS IN DUGOUTS THEY DID A HECK OF A JOB OF PACKING AND WINNING OUR CONFIDENCE SAID MR SCHMIDT BASEBALL DOES HOWEVER HAVE A TOUGHER DEMOGRAPHIC SELL THAN THE LIKES OF THE NATIONAL BASKETBALL ASSOCIATION WHICH HAS A YOUNGER AUDIENCE BUT THE NETWORK IS STRESSING THAT 50 PERCENT OF FANS WHO ATTEND BIGLEAGUE GAMES ARE 18 TO 34 YEARS OLD AND IT'S PLANNING TO TAKE A PAGE OUT OF THE NBA'S BOOK BY STEPPING UP THE PROMOTION OF INDIVIDUAL PLAYERS SOURCES SAY IT'S NEGOTIATING FOR A SPONSORSHIP PACKAGE WITH NIKE INC THE FOOTWEAR MAKER THAT'S A MASTER IN THE IMAGEMAKING OF PLAYERS INCLUDING HOOPSTERS MICHAEL JORDAN AND CHARLES BARKLEY 9402280115 940228 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES FELL 10 IN DECEMBER TO 5168 FROM 5752 A YEAR EARLIER THE FEDERAL INDUSTRY DEPARTMENT SAID INDIVIDUAL BANKRUPTCIES TOTALED 4193 IN DECEMBER AND BUSINESS BANKRUPTCIES 975 9402280114 940228 TECHNOLOGY SENATE COMMITTEE VOTES FOR CLEANWATER REVISION WASHINGTON A SENATE COMMITTEE APPROVED LEGISLATION THAT WOULD LOOSEN CERTAIN WATERCLEANUP REQUIREMENTS ON LOCAL GOVERNMENTS INCREASE FEDERAL LOANS TO IMPROVE SEWAGE TREATMENT AND INCREASE US REGULATION OF NONPOINT RUNOFF SUCH AS PESTICIDES THAT WASH OFF FARMLAND INTO LAKES AND STREAMS REVISIONS TO THE 1972 CLEAN WATER ACT WHICH WERE SUPPORTED BY THE CLINTON ADMINISTRATION DON'T INCLUDE A PROPOSAL FAVORED BY THE ENVIRONMENTAL PROTECTION AGENCY TO DEVELOP A PLAN TO REDUCE OR PROHIBIT DISCHARGE OF CHLORINE AND CHLORINATED COMPOUNDS INTO WATER WHEN THE ADMINISTRATION UNVEILED THE CHLORINE PROPOSAL EARLIER THIS MONTH IT DREW IMMEDIATE FIRE FROM THE CHEMICAL AND PAPER INDUSTRIES CHLORINE USED TO BLEACH PULP IN THE MANUFACTURE OF PAPER CONCERNS ENVIRONMENTALISTS BECAUSE IT BREAKS DOWN INTO DIOXIN AND OTHER POTENTIALLY TOXIC CHEMICALS THAT END UP IN FOOD THROUGH FISH AND OTHER ANIMALS THE LEGISLATION WHICH THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE CLEARED ON A 143 VOTE NOW GOES TO THE SENATE FLOOR NO ACTION HAS YET BEEN TAKEN ON THE BILL IN THE HOUSE THE BILL WOULD AUTHORIZE 25 BILLION FOR A FUND FOR SEWAGE TREATMENT THIS YEAR AND ANOTHER 500 MILLION IN 1995 9402280113 940228 SEAGRAM HOLDS 131 OF TIME WARNER NEAR TRIGGERPOINT OF TAKEOVER DEFENSE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL SEAGRAM CO HAS BOOSTED ITS STAKE IN TIME WARNER INC TO 131 FROM 117 SPURRING RENEWED SPECULATION THAT THE LIQUOR GIANT MAY CHALLENGE THE ENTERTAINMENT COMPANY OVER ITS RECENTLY IMPLEMENTED TAKEOVERDEFENSE PLAN TIME WARNER UNVEILED THE PLAN WHICH EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO 15 LAST MONTH WHILE SEAGRAM HAS SAID THAT IT PLANS TO BUY ONLY 15 OF TIME WARNER THE LIQUOR COMPANY HAS BEEN SHARPLY CRITICAL OF THE TIME WARNER POISON PILL THE NEW ROUND OF BUYING BY SEAGRAM WAS ITS FIRST SINCE TIME WARNER PUT THE PLAN IN PLACE SOME WALL STREET ANALYSTS SAY THE NEXT FEW MONTHS WILL PROVE CRITICAL IN THE OUTCOME OF THE SEAGRAMTIME WARNER SAGA JESSICA REIF AN ANALYST AT OPPENHEIMER & CO SAID IF SEAGRAM'S INTENTION IS TO TRY AND TAKE CONTROL OF THE COMPANY THEY COULD CHALLENGE IT THE PLAN DIRECTLY IN COURT OR THEY COULD LINK UP WITH ANOTHER LARGE SHAREHOLDER AND CHALLENGE MANAGEMENT THAT WAY TIME WARNER AND SEAGRAM DECLINED TO COMMENT PEOPLE CLOSE TO SEAGRAM HOWEVER PLAYED DOWN THE LATEST INVESTMENT SEAGRAM PRESIDENT EDGAR BRONFMAN JR GOT MARRIED LAST WEEK IN VENEZUELA AND WENT ON A LONG HONEYMOON THEY NOTED LEAVING INSTRUCTIONS TO CONTINUE THE BUYING PROGRAM TO THE 15 LEVEL AT OPPORTUNE PRICES WE SAID THERE IS A CEILING AND WE'RE JUST HEADING TOWARDS IT ONE OF THE PEOPLE SAID IN THE TIME WARNER CAMP MEANWHILE INSIDERS SAID THAT SEAGRAM APPEARED TO BE TAKING ADVANTAGE OF A DROP IN THE TIME WARNER SHARE PRICE TIME WARNER SHARES HAVE SLID RECENTLY LARGELY BECAUSE OF UNCERTAINTY OVER RECENTLY PROPOSED CHANGES IN CABLE REGULATIONS TIME WARNER'S SHARES CLOSED FRIDAY AT 37875 UP 25 CENTS IN NEW YORK STOCK EXCHANGE TRADING WITHOUT SEAGRAM'S BUYING HOWEVER MS REIF ESTIMATES THAT TIME WARNER SHARES WOULD HAVE DRIFTED TO THE LOW 30S TIME WARNER HAS TRADED AS HIGH AS 4437 A SHARE IN RECENT MONTHS RECENTLY THERE HAS BEEN SPECULATION THAT BARRY DILLER THE CHAIRMAN OF QVC NETWORK INC MAY JOIN FORCES WITH SEAGRAM TO MAKE A RUN AT TIME WARNER MR DILLER WHO RECENTLY LOST THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC IS A FRIEND OF MR BRONFMAN BUT PEOPLE CLOSE TO SEAGRAM HAVE DISMISSED SUCH SPECULATION NONETHELESS MS REIF SAYS SEAGRAM'S SWELLING STAKE PRESENTS A GROWING DISTRACTION TO TIME WARNER'S MANAGEMENT AND ITS EMPLOYEES EVERYBODY IS WONDERING WHO THEY ARE GOING TO BE WORKING FOR SHE SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION ON FRIDAY SEAGRAM SAID IT SPENT 193 MILLION TO LIFT ITS STAKE IN TIME WARNER FROM 117 TO 131 SEAGRAM IS TIME WARNER'S LARGEST SHAREHOLDER WITH 493 MILLION COMMON SHARES SEAGRAM MOST RECENTLY PURCHASED FIVE MILLION SHARES FROM FEB 4 AND FEB 25 AT PRICES RANGING FROM 3775 TO 3937 SEAGRAM BEGAN ACQUIRING TIME WARNER SHARES IN MAY IN WHAT IT SAYS IS A FRIENDLY LONGTERM INVESTMENT BUT MANY TIME WARNER SHAREHOLDERS ARE WORRIED THAT SEAGRAM EVENTUALLY WILL ATTEMPT TO INFLUENCE TIME WARNER MANAGEMENT SO FAR HOWEVER SEAGRAM HASN'T PRESSED FOR A BOARD SEAT NOR HAS ONE BEEN OFFERED 9402280112 940228 COMPETITIVENESS A DANGEROUS OBSESSION BY PAUL KRUGMAN PRESIDENT CLINTON HAS SAID THAT EACH NATION IS LIKE A BIG CORPORATION COMPETING IN THE GLOBAL MARKETPLACE HIS TOUGH STANCE AGAINST JAPAN SHOWS THAT HE REALLY BELIEVES THIS BUT THE IDEA THAT A COUNTRY'S ECONOMIC FORTUNES ARE LARGELY DETERMINED BY ITS SUCCESS ON WORLD MARKETS IS ONLY A HYPOTHESIS AS A PRACTICAL EMPIRICAL MATTER THAT HYPOTHESIS IS WRONG IT IS SIMPLY NOT THE CASE THAT THE WORLD'S LEADING NATIONS ARE TO ANY IMPORTANT DEGREE IN ECONOMIC COMPETITION WITH EACH OTHER OR THAT ANY OF THEIR MAJOR ECONOMIC PROBLEMS CAN BE ATTRIBUTED TO FAILURES TO COMPETE ON WORLD MARKETS THE GROWING OBSESSION IN MOST ADVANCED NATIONS WITH INTERNATIONAL COMPETITIVENESS SHOULD BE SEEN AS A VIEW HELD IN THE FACE OF OVERWHELMING CONTRARY EVIDENCE TRYING TO DEFINE A NATION'S COMPETITIVENESS IS MUCH MORE PROBLEMATIC THAN DEFINING A CORPORATION'S THE BOTTOM LINE FOR A CORPORATION IS LITERALLY ITS BOTTOM LINE WHEN WE SAY A CORPORATION IS UNCOMPETITIVE WE MEAN THAT UNLESS IT IMPROVES ITS PERFORMANCE IT WILL CEASE TO EXIST COUNTRIES HOWEVER DO NOT GO OUT OF BUSINESS THEY MAY BE HAPPY OR UNHAPPY WITH THEIR ECONOMIC PERFORMANCE BUT THEY HAVE NO WELLDEFINED BOTTOM LINE ONE MIGHT SUPPOSE NAIVELY THAT THE BOTTOM LINE OF A NATIONAL ECONOMY IS SIMPLY ITS TRADE BALANCE THAT COMPETITIVENESS CAN BE MEASURED BY THE ABILITY OF A COUNTRY TO SELL MORE ABROAD THAN IT BUYS BUT A TRADE SURPLUS MAY BE A SIGN OF NATIONAL WEAKNESS A DEFICIT A SIGN OF STRENGTH FOR EXAMPLE MEXICO WAS FORCED TO RUN HUGE TRADE SURPLUSES IN THE 1980S TO PAY THE INTEREST ON ITS FOREIGN DEBT SINCE INTERNATIONAL INVESTORS REFUSED TO LEND IT ANY MORE MONEY IT BEGAN TO RUN LARGE TRADE DEFICITS AFTER 1990 AS CONFIDENT FOREIGN INVESTORS BEGAN TO POUR IN NEW FUNDS WOULD ANYONE DESCRIBE MEXICO AS A HIGHLY COMPETITIVE NATION DURING THE DEBT CRISIS OR CALL WHAT HAS HAPPENED SINCE 1990 A LOSS IN COMPETITIVENESS MOST WRITERS WHO WORRY ABOUT THE ISSUE AT ALL HAVE THEREFORE TRIED TO DEFINE COMPETITIVENESS AS THE COMBINATION OF FAVORABLE TRADE PERFORMANCE AND SOMETHING ELSE THE MOST POPULAR DEFINITION OF COMPETITIVENESS NOWADAYS RUNS ALONG THE LINES OF THE ONE GIVEN IN WHO'S BASHING WHOM BY LAURA D'ANDREA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS OUR ABILITY TO PRODUCE GOODS AND SERVICES THAT MEET THE TEST OF INTERNATIONAL COMPETITION WHILE OUR CITIZENS ENJOY A STANDARD OF LIVING THAT IS BOTH RISING AND SUSTAINABLE BUT CONSIDER WHAT THAT DEFINITION WOULD MEAN FOR AN ECONOMY THAT CONDUCTED VERY LITTLE INTERNATIONAL TRADE LIKE THE US IN THE 1950S FOR SUCH AN ECONOMY THE ABILITY TO BALANCE ITS TRADE IS MOSTLY A MATTER OF GETTING THE EXCHANGE RATE RIGHT BUT BECAUSE TRADE IS SUCH A SMALL FACTOR IN THE ECONOMY THE EXCHANGE RATE LEVEL IS A MINOR INFLUENCE ON THE STANDARD OF LIVING SO IN AN ECONOMY WITH VERY LITTLE INTERNATIONAL TRADE THE GROWTH IN LIVING STANDARDS AND THUS COMPETITIVENESS ACCORDING TO MS TYSON'S DEFINITION WOULD BE DETERMINED ALMOST ENTIRELY BY DOMESTIC FACTORS PRIMARILY THE RATE OF PRODUCTIVITY GROWTH THAT'S DOMESTIC PRODUCTIVITY GROWTH PERIOD FOR SUCH AN ECONOMY COMPETITIVENESS WOULD TURN OUT TO BE A FUNNY WAY OF SAYING PRODUCTIVITY AND WOULD HAVE NOTHING TO DO WITH INTERNATIONAL COMPETITION BUT DOESN'T THIS CHANGE WHEN TRADE BECOMES MORE IMPORTANT AS INDEED IT HAS FOR ALL MAJOR ECONOMIES IT CERTAINLY COULD CHANGE SUPPOSE A COUNTRY FINDS THAT ALTHOUGH ITS PRODUCTIVITY IS STEADILY RISING IT CAN SUCCEED IN EXPORTING ONLY IF IT REPEATEDLY DEVALUES ITS CURRENCY SELLING ITS EXPORTS EVER MORE CHEAPLY ON WORLD MARKETS THEN ITS STANDARD OF LIVING WHICH DEPENDS ON ITS PURCHASING POWER OVER IMPORTS AS WELL AS DOMESTICALLY PRODUCED GOODS MIGHT ACTUALLY DECLINE SO COMPETITIVENESS COULD TURN OUT TO BE ABOUT INTERNATIONAL COMPETITION AFTER ALL THERE IS NO REASON HOWEVER TO LEAVE THIS AS PURE SPECULATION IT CAN EASILY BE CHECKED AGAINST THE DATA HAVE DETERIORATING TERMS OF TRADE IN FACT BEEN A MAJOR DRAG ON THE US STANDARD OF LIVING OR HAS THE RATE OF GROWTH OF US REAL INCOME CONTINUED ESSENTIALLY TO EQUAL THE RATE OF DOMESTIC PRODUCTIVITY GROWTH EVEN THOUGH TRADE IS A LARGER SHARE OF INCOME THAN IT USED TO BE THE ANSWER LIES IN NATIONAL INCOME ACCOUNTS DATA THE COMMERCE DEPARTMENT PUBLISHES REGULARLY IN THE SURVEY OF CURRENT BUSINESS THE STANDARD MEASURE OF ECONOMIC GROWTH IN THE US IS OF COURSE REAL GROSS NATIONAL PRODUCT A MEASURE THAT DIVIDES THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US BY APPROPRIATE PRICE INDEXES TO COME UP WITH AN ESTIMATE OF REAL NATIONAL OUTPUT THE COMMERCE DEPARTMENT ALSO HOWEVER PUBLISHES SOMETHING CALLED COMMAND GNP THIS IS SIMILAR TO REAL GNP EXCEPT THAT IT DIVIDES US EXPORTS NOT BY THE EXPORT PRICE INDEX BUT BY THE PRICE INDEX FOR US IMPORTS THAT IS EXPORTS ARE VALUED BY WHAT AMERICANS CAN BUY WITH THE MONEY EXPORTS BRING COMMAND GNP THEREFORE MEASURES THE VOLUME OF GOODS AND SERVICES THE US ECONOMY CAN COMMAND THE NATION'S PURCHASING POWER RATHER THAN THE VOLUME IT PRODUCES AND AS WE HAVE JUST SEEN COMPETITIVENESS MEANS SOMETHING DIFFERENT FROM PRODUCTIVITY IF AND ONLY IF PURCHASING POWER GROWS SIGNICANTLY MORE SLOWLY THAN OUTPUT WELL HERE ARE THE NUMBERS OVER THE 195973 PERIOD ONE OF VIGOROUS GROWTH IN US LIVING STANDARDS AND FEW CONCERNS ABOUT INTERNATIONAL COMPETITION REAL GNP PER WORKERHOUR GREW 185 ANNUALLY WHILE COMMAND GNP PER HOUR GREW A BIT FASTER 187 FROM 1973 TO 1990 A PERIOD OF STAGNATING LIVING STANDARDS COMMAND GNP GROWTH PER HOUR SLOWED TO 065 ALMOST ALL 91 OF THAT SLOWDOWN HOWEVER WAS EXPLAINED BY A DECLINE IN DOMESTIC PRODUCTIVITY GROWTH REAL GNP PER HOUR GREW ONLY 073 SIMILAR CALCULATIONS FOR THE EUROPEAN COMMUNITY AND JAPAN YIELD SIMILAR RESULTS IN EACH CASE THE GROWTH RATE OF LIVING STANDARDS ESSENTIALLY EQUALS THE GROWTH RATE OF DOMESTIC PRODUCTIVITY EVEN THOUGH WORLD TRADE IS LARGER THAN EVER BEFORE NATIONAL LIVING STANDARDS ARE OVERWHELMINGLY DETERMINED BY DOMESTIC FACTORS RATHER THAN BY SOME COMPETITION FOR WORLD MARKETS HOW CAN THIS BE IN OUR INTERDEPENDENT WORLD PART OF THE ANSWER IS THAT THE WORLD IS NOT AS INTERDEPENDENT AS YOU MIGHT THINK COUNTRIES ARE NOTHING AT ALL LIKE CORPORATIONS EVEN TODAY US EXPORTS ARE ONLY 10 OF THE VALUEADDED IN THE ECONOMY WHICH IS EQUAL TO GNP THE US IS STILL ALMOST 90 AN ECONOMY THAT PRODUCES GOODS AND SERVICES FOR ITS OWN USE BY CONTRAST EVEN THE LARGEST CORPORATION SELLS HARDLY ANY OF ITS OUTPUT TO ITS OWN WORKERS THE EXPORTS OF GENERAL MOTORS ITS SALES TO PEOPLE WHO DO NOT WORK THERE ARE VIRTUALLY ALL SALES WHICH ARE MORE THAN 25 TIMES THE CORPORATION'S VALUEADDED MOREOVER COUNTRIES DO NOT COMPETE WITH EACH OTHER THE WAY CORPORATIONS DO COKE AND PEPSI ARE ALMOST PURELY RIVALS ONLY A NEGLIGIBLE FRACTION OF COCACOLA'S SALES GO TO PEPSI WORKERS ONLY A NEGLIGIBLE FRACTION OF THE GOODS COCACOLA WORKERS BUY ARE PEPSI PRODUCTS SO IF PEPSI IS SUCCESSFUL IT TENDS TO BE AT COKE'S EXPENSE BUT THE MAJOR INDUSTRIAL COUNTRIES WHILE THEY SELL PRODUCTS THAT COMPETE WITH EACH OTHER ARE ALSO EACH OTHER'S MAIN EXPORT MARKETS AND EACH OTHER'S MAIN SUPPLIERS OF USEFUL IMPORTS IF THE EUROPEAN ECONOMY DOES WELL IT NEED NOT BE AT US EXPENSE INDEED IF ANYTHING A SUCCESSFUL EUROPEAN ECONOMY IS LIKELY TO HELP THE US BY PROVIDING IT WITH LARGER MARKETS AND SELLING IT GOODS OF SUPERIOR QUALITY AT LOWER PRICES INTERNATIONAL TRADE THEN IS NOT A ZEROSUM GAME WHEN PRODUCTIVITY RISES IN JAPAN THE MAIN RESULT IS A RISE IN JAPANESE REAL WAGES AMERICAN OR EUROPEAN WAGES ARE IN PRINCIPLE AT LEAST AS LIKELY TO RISE AS TO FALL AND IN PRACTICE SEEM NEARLY UNAFFECTED THE MORAL IS CLEAR WHILE COMPETITIVE PROBLEMS COULD ARISE IN PRINCIPLE AS AN EMPIRICAL MATTER MAJOR NATIONS OF THE WORLD ARE NOT TO ANY SIGNIFICANT DEGREE IN ECONOMIC COMPETITION WITH EACH OTHER THE MAGAZINE FOREIGN AFFAIRS PUBLISHES A LONGER VERSION OF THIS MATERIAL TODAY MR KRUGMAN'S NEW BOOK PEDDLING PROSPERITY WW NORTON WILL BE PUBLISHED IN MARCH 9402280111 940228 EXREAGAN AIDE GETS NOD FOR CZECH STEEL MINIMILL PRAGUE THE CZECH REPUBLIC HAS GIVEN THE GOAHEAD TO A BIG MINIMILL PROJECT SPONSORED BY FORMER REAGAN AID JOHN P SEARS A SPOKESMAN FOR THE CZECH MINISTRY OF INDUSTRY AND TRADE SAID THAT THE MINISTRY WILL BEGIN SERIOUS NEGOTIATIONS WITH MR SEARS'S GROUP WHICH INCLUDES SOME OF JAPAN'S BIGGEST STEEL COMPANIES IT'S ONLY THE STARTING POINT THE SPOKESMAN SAID THE SEARS GROUP WANTS TO FORM A JOINT VENTURE WITH STATEOWNED NOVA HUT IN OSTRAVA TO BUILD A STEEL MINIMILL FINANCED BY US INVESTORS AT A COST OF AS MUCH AS 950 MILLION IF COMPLETED THE PROJECT WOULD BE ONE OF THE BIGGEST YET IN THE FORMER COMMUNIST LANDS THE SEARS GROUP HAD BEEN IN COMPETITION WITH ANOTHER GROUP THAT WANTED TO BUILD THE MILL WITH A RIVAL CZECH COMPANY IN OSTRAVA CZECH MINISTERS THE INDUSTRY MINISTRY SPOKESMAN SAID DECIDED THEY PREFERRED NOVA HUT BUT THAT IS ALL THE MOST CONTROVERSIAL ELEMENT OF THE SEARS PROJECT INVOLVES ASKING THE CZECH GOVERNMENT TO GUARANTEE FINANCING FOR THE MILL UNDER THE ORIGINAL PROPOSAL MR SEARS AND HIS GROUP WOULD ASSUME MAJORITY OWNERSHIP IN THE MILL WHILE PUTTING LITTLE EQUITY INTO IT MR SEARS WASN'T AVAILABLE TO COMMENT HIS LAW PARTNER AND PARTNER IN THE STEEL PROJECT JOEL D HOPPENSTEIN SAID MR SEARS IS IN JAPAN WORKING FEVERISHLY ON HAMMERING OUT THE DETAILS 9402280110 940228 LAW LEGAL BEAT MEAD AMERICAN LAWYER MEDIA SET VENTURE FOR COMPUTER SERVICE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL TWO BIG LEGALINFORMATION PROVIDERS ARE JOINING FORCES TO CREATE A COMPUTER SERVICE OFFERING COURT DECISIONS AND DOCUMENTS ON LINE WHILE ENABLING LAWYERS TO COMMUNICATE WITH EACH OTHER ABOUT LEGAL DEVELOPMENTS THE PARTNERSHIP BETWEEN MEAD CORP'S MEAD DATA CENTRAL UNIT AND AMERICAN LAWYER MEDIA UNITES THE VAST ELECTRONIC ARCHIVE OF NEWS AND COURT DECISIONS IN MEAD'S LEXIS AND NEXIS SERVICES WITH COUNSEL CONNECT A DATABASE AND ELECTRONICMAIL HOOKUP LAUNCHED LAST YEAR BY AMERICAN LAWYER MEDIA AMERICAN LAWYER MEDIA WILL OWN A MAJORITY STAKE IN THE SERVICE TO BE CALLED LEXIS COUNSEL CONNECT AND WILL MANAGE IT ACCORDING TO STEVEN BRILL CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN LAWYER MEDIA NEW YORK A PARTNERSHIP OWNED BY MR BRILL AND TIME WARNER INC THE DEAL IS EXPECTED TO BE ANNOUNCED TODAY MR BRILL DESCRIBED THE SERVICE AS A SORT OF CRADLETOGRAVE ARRAY OF INFORMATION FOR LAWYERS AND THEIR CLIENTS IT'S ONE PLACE TO GO FOR LEGAL INFORMATION RANGING FROM AS FAR BACK IN AN ARCHIVE AS YOU CAN GO THE CASE 50 YEARS AGO THAT MAY BE ON LEXIS TO SIX EXPERT LAWYERS IN AN AREA HAVING A DISCUSSION RIGHT NOW ABOUT A COURT DECISION THAT MORNING THE SERVICE IS INTENDED TO ENABLE LAWYERS TO MOVE EASILY BACK AND FORTH FROM MEAD'S ARCHIVES TO VARIOUS COUNSEL CONNECT OFFERINGS SUCH AS LAWFIRM MEMOS ON CURRENT TOPICS IN THE LAW AND ONLINE LEGAL DISCUSSIONS WITH EXPERTS ON THOSE TOPICS IN ADDITION THE COMPANIES PLAN BEFORE YEAR'S END TO OFFER A PERSONALIZED NEWSPAPER THAT WILL PACKAGE INFORMATION ABOUT LEGAL DEVELOPMENTS AND OTHER BREAKING NEWS BASED ON SUBSCRIBERS' INDIVIDUAL INTERESTS OVER TIME THE VENTURE IS LIKELY TO PROVIDE A VARIETY OF SPECIALTY SERVICES THAT COULD HELP CORPORATELAW DEPARTMENTS SAID JON KLEMENS A PRINCIPAL IN THE INFORMATIONSERVICES GROUP OF THE LAWFIRM CONSULTANCY ALTMAN WEIL PENSA INC NEWTOWN SQUARE PA IT IS A LOWCOST WAY TO GET TOPICAL INFORMATION THAT LAW FIRMS WOULD OTHERWISE HAVE BEEN SELLING TO THEIR CLIENTS ON AN HOURLY BASIS MR KLEMENS SAID MR BRILL'S NEW COUNSEL CONNECT SERVICE WILL BENEFIT FROM MEAD'S CASH INFUSION ITS NATIONWIDE MARKETING APPARATUS AND ITS BASE OF MORE THAN 300000 LEXIS/NEXIS SUBSCRIBERS COUNSEL CONNECT CURRENTLY HAS ABOUT 4500 SUBSCRIBERS THE COMPANIES DECLINED TO DISCLOSE THE SIZE OF MEAD'S INTEREST IN THE VENTURE BUT A PERSON FAMILIAR WITH THE DEAL VALUED MEAD'S INVESTMENT AT MORE THAN 10 MILLION THE COMPANIES ALSO WOULDN'T PROVIDE THEIR PERCENTAGE STAKES IN THE SERVICE FOR MEAD DATA CENTRAL BASED IN DAYTON OHIO THE VENTURE REPRESENTS AN OPPORTUNITY TO DIVERSIFY ITS LEGALINFORMATION SERVICES BEYOND THE PROVISION OF ONLINE RESEARCH AN AREA THAT HAS BECOME INCREASINGLY COMPETITIVE IN RECENT YEARS AS THE TECHNOLOGY INVOLVED HAS BECOME LESS EXPENSIVE UNTIL A FEW YEARS AGO MEAD DATA CENTRAL AND ITS MAIN COMPETITOR WEST PUBLISHING CO REALLY WERE MONOPOLIES SAID MR KLEMENS THE LAWFIRM CONSULTANT NOW ALL OF A SUDDEN IT'S A VERY COMPETITIVE ENVIRONMENT IN THE INFORMATION AREA PROVIDING THE KIND OF INTERACTIVE SERVICES AVAILABLE ON COUNSEL CONNECT WILL EXTEND THE NAME LEXIS AND MAKE IT LESS OF A PRODUCT AND MORE OF A BRAND SAID REBECCA WENDY BASS VICE PRESIDENT FOR LEGAL INFORMATION SERVICES AT MEAD DATA CENTRAL WHICH HAD REVENUE OF 551 MILLION LAST YEAR FIVE LEADING PARTNERS FROM RECENTLY DISBANDED SHEA & GOULD ARE JOINING PROSKAUER ROSE GOETZ & MENDELSON AS PARTNERS IN NEW YORK BRINGING WITH THEM 15 NONPARTNERSHIP ATTORNEYS AND A VERY SUBSTANTIAL BOOK OF BUSINESS SAID PROSKAUER PARTNER ALLEN I FAGIN THE ARRIVING PARTNERS ARE FORMER SHEA & GOULD CORPORATE DEPARTMENT HEAD ARNOLD S JACOBS FORMER LITIGATION HEAD LEON GOLD REALESTATE SPECIALIST LAWRENCE J LIPSON CORPORATE LAWYER ALLEN R WILLIAMS AND LITIGATOR RICHARD M GOLDSTEIN THE MOVE EFFECTIVE TODAY IS THE SECOND MAJOR WAVE OF DEPARTURES SINCE SHEA & GOULD FORMERLY ONE OF NEW YORK'S BEST KNOWN LAW FIRMS ANNOUNCED IT WAS BREAKING UP EARLIER THIS MONTH LAST WEEK LITIGATORS PETER C NAGER AND MARY GAIL GEARNS ALONG WITH BANKING SPECIALIST FRAN JACOBS AND LABOR LAWYERS VINCENT F PITTA AND JOE E GULNI JOINED THE NEW YORK FIRM OF RICHARDS & O'NEIL AS PARTNERS A TENNESSEE WOMAN FILED A DISCRIMINATION SUIT AGAINST THE OWNER OF A LOCAL CINEMA AFTER BEING TURNED AWAY BECAUSE SHE WAS TOO OBESE TO FIT INTO A SEAT DEBORAH BIRDWELL A 38YEAROLD RESIDENT OF COOKEVILLE TENN WHO WEIGHS 360 POUNDS ALLEGES IN THE SUIT AGAINST CARMIKE CINEMAS INC THAT THE THEATER VIOLATED THE AMERICANS WITH DISABILITIES ACT BY FAILING TO ACCOMMODATE HER IN A PUBLIC PLACE A COOKEVILLE THEATER MANAGER PROHIBITED HER FROM CARRYING HER OWN CHAIR INTO THE THEATER TO SEE JURASSIC PARK LAST JUNE AND THE THEATER DIDN'T HAVE SEATS BIG ENOUGH TO ACCOMMODATE HER THE SUIT ALLEGES THE SUIT FILED IN US DISTRICT COURT IN THE MIDDLE DISTRICT OF TENNESSEE SEEKS UNSPECIFIED DAMAGES JOHN BARWICK CHIEF FINANCIAL OFFICER OF COLUMBUS GABASED CARMIKE SAID THE COMPANY HAS NO COMMENT ON THE SUIT IN NOVEMBER A FEDERAL CIRCUIT COURT OF APPEALS IN BOSTON RULED THAT PEOPLE WHO ARE DOUBLE THE NORMAL WEIGHT FOR THEIR HEIGHT SUFFER FROM A DISABILITY AND ARE PROTECTED FROM DISCRIMINATION BY FEDERAL DISABILITY LAWS REGARDLESS OF WHETHER THEIR OBESITY IS CAUSED BY DISEASE LAURA ELJAIEK PROGRAM DIRECTOR FOR THE NATIONAL ASSOCIATION TO ADVANCE FAT ACCEPTANCE IN SACRAMENTO CALIF SAID THE CASE IS A KEY TEST OF HOW MUCH ACCESS TO PUBLIC ACCOMMODATION WILL BE CONSIDERED REASONABLE BY THE COURTS WE'RE TOLD WE DON'T FIT INTO SOCIETY SHE SAYS LITERALLY WE DON'T FIT INTO ACCOMMODATIONS EVERYONE TAKES FOR GRANTED THIS IS A KEY ISSUE RAPMUSIC SOUNDS SUCH AS BRRR AND HUGGA HUGGA MAY BE ENTITLED TO COPYRIGHT PROTECTION A FEDERAL JUDGE RULED US DISTRICT JUDGE CHARLES S HAIGHT REJECTED ARGUMENTS THAT THE SOUNDS ARE UNORIGINAL LIKE A SINGLE DRUMBEAT AND THEREFORE UNPROTECTABLE UNDER THE COPYRIGHT LAWS THE JUDGE SAID IN HIS RULING THAT A SHOWING OF VIRTUALLY ANY INDEPENDENT CREATIVITY IS ENOUGH FOR A JURY TO FIND A WORK PROTECTABLE THE RULING MEANS THE RAP GROUP KNOWN AS THE FAT BOYS CAN PROCEED WITH A COPYRIGHTINFRINGEMENT CASE AGAINST MILLER BREWING CO A UNIT OF PHILIP MORRIS COS THE GROUP CONTENDS THAT AFTER IT REBUFFED MILLER'S OFFER TO APPEAR IN A 198788 BEER COMMERCIAL WITH ACTOR JOE PISCOPO THE BREWER HIRED SIMILARLOOKING ACTORS TO SING AN UNAUTHORIZED COPY OF THE FAT BOYS' SONG STICK'EM JONATHAN ZAVIN AN ATTORNEY FOR THE RAPPERS SAID THEY DECLINED THE COMMERCIAL WORK BECAUSE THEY DIDN'T WANT TO BE SEEN AS PROMOTING ALCOHOLIC BEVERAGES TO THEIR LARGELY UNDERAGE AUDIENCE THE RAP GROUP WHICH WAS POPULAR IN THE LATE 1980S NO LONGER PERFORMS MR ZAVIN SAID JUDGE HAIGHT'S DECISION IS SIGNIFICANT BECAUSE IT EXTENDS COPYRIGHT LAW TO NEW FORMS OF CREATIVE MUSIC SUCH AS RAP HOWARD RUBIN AN ATTORNEY FOR MILLER SAID IT HADN'T SEEN THE DECISION AND DECLINED TO COMMENT MILO GEYELIN MARGARET A JACOBS AND LAURIE M GROSSMAN CONTRIBUTED TO THIS ARTICLE 9402280109 940228 KAISER TO CURB PRODUCTION HOUSTON KAISER ALUMINUM CORP SAID IT WILL CUT PRODUCTION OF ALUMINUM BY ABOUT 40000 METRIC TONS OR ABOUT 93 OF ITS ANNUAL OUTPUT A METRIC TON EQUALS 220462 POUNDS THE ALUMINUM PRODUCER 61OWNED BY MAXXAM INC BLAMED LOW ALUMINUM PRICES AND A WORLDWIDE OVERSUPPLY THE CUTBACKS WILL BE MADE IN APRIL KAISER SAID THAT AFTER THE REDUCTIONS IT WILL BE OPERATING AT ABOUT 77 OF ITS TOTAL ANNUAL CAPACITY OF 508000 METRIC TONS 9402280108 940228 GERMAN AUTO OUTPUT FALLS FRANKFURT GERMAN AUTOMOBILE PRODUCTION FELL AN ADJUSTED 17 IN JANUARY FROM A YEAR EARLIER THE VDA AUTOMOBILE ASSOCIATION REPORTED FRIDAY THE FIGURE IS ADJUSTED TO REFLECT 21 WORKING DAYS LAST MONTH COMPARED WITH 20 WORKING DAYS IN JANUARY 1993 IT SAID ON AN UNADJUSTED BASIS OVERALL MOTOR VEHICLE PRODUCTION SKIDDED 12 TO 274300 UNITS FROM 312880 UNITS A YEAR EARLIER CAR PRODUCTION SLUMPED 14 TO 257800 UNITS FROM 298395 UNITS A YEAR EARLIER 9402280107 940228 STATE OF ISRAEL BONDS CHIEF NEW YORK NATHAN SHARONY FORMER DIRECTOR GENERAL OF ISRAEL'S MINISTRY OF INDUSTRY AND TRADE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE WORLDWIDE STATE OF ISRAEL BONDS ORGANIZATION MR SHARONY SUCCEEDS MEIR ROSENNE STATE OF ISRAEL BONDS OFFERS SECURITIES ISSUED BY THE GOVERNMENT OF ISRAEL SALES IN 1993 EXCEEDED 1 BILLION FOR THE SECOND CONSECUTIVE YEAR 9402280106 940228 SEC ACCUSES ANALYST OF HELPING FIRM DISSEMINATE INCORRECT FINANCIAL DATA BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN UNUSUAL ENFORCEMENT ACTION THE SECURITIES AND EXCHANGE COMMISSION ACCUSED A SECURITIES ANALYST OF HELPING A NOWDEFUNCT COMPANY DISSEMINATE FALSE FINANCIAL DATA THE CHARGES WERE FILED LAST WEEK AGAINST ANALYST SUZANNE L COOK A SPECIALIST IN OILSERVICES COMPANIES WHO ONCE WORKED FOR MERRILL LYNCH & CO THE CHARGES RELATE TO MS COOK'S WORK ON BEHALF OF BARTON INDUSTRIES INC A VALVE MANUFACTURER THAT TWICE SOUGHT BANKRUPTCYCOURT PROTECTION BEFORE ITS ASSETS WERE LIQUIDATED LATE LAST YEAR AN ENFORCEMENT ACTION AGAINST AN ANALYST IS SOMEWHAT UNUSUAL BUT WE THINK IT'S APPROPRIATE SAID RUDOLPH GERLICH JR AN SEC ASSISTANT ENFORCEMENT DIRECTOR GIVEN THE ROLE OF ANALYSTS IN THE MARKETPLACE WE THINK IT'S FAIRLY SIGNIFICANT MS COOK IS CONTESTING THE CHARGES MR GERLICH SAID HER LAWYER DIDN'T RETURN CALLS MS COOK COULDN'T BE REACHED FOR COMMENT THE SEC ALLEGES THAT MS COOK WAS WELL AWARE OF BARTON INDUSTRIES' FINANCIAL TROUBLES IN DECEMBER 1990 WHEN SHE HELPED THE COMPANY'S MANAGEMENT DRAFT A NEWS RELEASE PROJECTING ROSY EARNINGS FOR THE COMPANY'S FISCAL YEAR AT THE TIME MS COOK'S HUSBAND SPENCER COOK WAS WORKING AS A CONSULTANT TO THE FIRM WHICH WAS BASED IN SHAWNEE OKLA THE PROPOSED RELEASE CONTAINED MATERIALLY FALSE AND MISLEADING STATEMENTS AND OMISSIONS CONCERNING BARTON'S FINANCIAL CONDITION THE SEC ALLEGES MS COOK THE SEC SAYS HAD NOT DONE ANY INDEPENDENT RESEARCH INTO THE FIGURES IN THE RELEASE WHICH WERE PROVIDED TO HER BY BARTON MS COOK ALLEGEDLY VOUCHED FOR THE NUMBERS WHICH SHE CLAIMED WERE BACKED BY FOUR MONTHS OF PERSONAL RESEARCH AT A MEETING OF BARTON INDUSTRIES SHAREHOLDERS THE SEC SAID JUST TWO SHAREHOLDERS ATTENDED THE MEETING BUT THE NEWS RELEASE LATER WAS DISSEMINATED TO THE PUBLIC AT THE VERY LEAST MISS COOK WAS RECKLESS BASICALLY PROMOTING BARTON'S FUTURE PROSPECTS SAID MR GERLICH THE SEC ENFORCEMENT LAWYER AN ANALYST WHO IS PUTTING OUT REPORTS BETTER HAVE A REASONABLE BASIS FOR THEM A MONTH AGO THE SEC CHARGED TWO OF THE EXECUTIVES WHO WORKED WITH MS COOK WITH ISSUING FALSE FINANCIAL STATEMENTS AMONG OTHER THINGS THE EXECUTIVES THE COMPANY'S FORMER CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT CW EARL JOHNSON AND ITS FORMER CHIEF FINANCIAL OFFICER VICTOR JOYCE ALSO ARE CONTESTING THE SEC CHARGES ALTHOUGH MS COOK WAS WORKING IN MERRILL LYNCH'S DALLAS OFFICE AT THE TIME A SPOKESWOMAN SAID THE FIRM NEVER ISSUED ANY RESEARCH REGARDING BARTON INDUSTRIES SHE SAID THE COMPANY WAS NEVER A CLIENT OF MERRILL LYNCH MS COOK WHO JOINED MERRILL LYNCH IN 1988 LEFT THE FIRM IN DECEMBER 1992 THE SPOKESWOMAN SAID 9402280105 940228 FIRST COMMERCIAL CORP LITTLE ROCK ARK FIRST COMMERCIAL CORP SAID ITS SUBSIDIARY FIRST COMMERCIAL BANK NA OF LITTLE ROCK HAS SUBSTANTIALLY REDUCED ITS NONPERFORMING ASSETS BY SELLING PART OF THE CRESTWOOD CO PROPERTY IN NORTH LITTLE ROCK ON WHICH IT HAS HELD A MORTGAGE FOR SEVERAL YEARS THE PROCEEDS LOWERED THE BALANCE OF OTHER REAL ESTATE BY 71 AT FIRST COMMERCIAL BANK AND BY 47 FOR FIRST COMMERCIAL CORP AN AMOUNT WAS RECEIVED IN EXCESS OF THE BALANCE IN OTHER REAL ESTATE HOWEVER THE CORPORATION'S FIRSTQUARTER EARNINGS WON'T BE MATERIALLY AFFECTED 9402280104 940228 FRANCE MAY FACE US MOVE DUE TO FISHIMPORT CONTROLS PARIS THE US IS CONSIDERING BLOCKING IMPORTS OF CERTAIN FRENCH PRODUCTS WITH CHEESE AT THE TOP OF THE LIST ACCORDING TO US DIPLOMATS HERE UNLESS PARIS RELAXES THE STRICT BORDER CONTROLS IT SLAPPED ON FOREIGN FISH EARLIER THIS MONTH FOLLOWING VIOLENT RIOTS BY FRENCH FISHERMEN OUR PATIENCE IS WEARING THIN WE ARE ACTIVELY CONSIDERING WHAT MEASURES TO TAKE SAID A US DIPLOMAT WHO ASKED NOT TO BE IDENTIFIED THE US EXPORTS AN ESTIMATED 100 MILLION OF FRESH AND FROZEN FISH TO FRANCE EACH YEAR ACCORDING TO US FISH EXPORTERS THE FRENCH GOVERNMENT'S SUDDEN DECISION ON FEB 5 TO RUN RIGOROUS AND LENGTHY HEALTH TESTS ON FRESH FISH FROM OUTSIDE THE EUROPEAN UNION RESULTED IN SHIPMENTS OF AMERICAN FISH ROTTING IN CONTAINERS AT PARIS'S CHARLES DE GAULLE AIRPORT FISH FROM NORWAY AND SENEGAL WAS ALSO AFFECTED SINCE THEN THE FRENCH AUTHORITIES HAVE CLOSED THAT AIRPORT TO INCOMING SHIPMENTS OF FISH FORCING MOST US FISH EXPORTERS TO REROUT THEIR SHIPMENTS FOR FRANCE TO OTHER EUROPEAN AIRPORTS A SPOKESWOMAN FOR THE FRENCH FARM AND FISHING MINISTRY PLAYED DOWN ANY CONNECTION BETWEEN THE RIOTS IN EARLY FEBRUARY AND THE CLAMPDOWN ON NONEU FISH IMPORTS CHARLES DE GAULLE AIRPORT WAS CLOSED FOR FISH IMPORTS IN EARLY FEBRUARY BECAUSE IT DID NOT MEET THE NECESSARY SANITARY CONDITIONS SHE SAID 9402280103 940228 ROGERS CONTENDS CABLETV RATE CUT ENHANCES OFFER FOR MACLEAN HUNTER BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO EDWARD S ROGERS CHIEF EXECUTIVE OF ROGERS COMMUNICATIONS INC SAID THE US CABLETELEVISION RATE CUT ORDERED LAST WEEK HAS SIGNIFICANTLY IMPAIRED THE VALUE OF MACLEAN HUNTER LTD MAKING HIS 279 BILLION CANADIAN DOLLAR US207 BILLION TAKEOVER BID EVEN MORE ATTRACTIVE MR ROGERS PREDICTED THAT CASH FLOW FROM MACLEAN HUNTER'S US CABLE ASSETS WILL DROP BY 10 TO 15 IN THE WAKE OF A 7 REDUCTION IN THE BASIC CABLE RATE WHICH WAS ORDERED BY THE US FEDERAL COMMUNICATIONS COMMISSION AS A RESULT HE NOW VALUES MACLEAN HUNTER AT LEAST AT C1 74 US CENTS PER SHARE LESS THAN THE C17 A SHARE ROGERS IS OFFERING MR ROGERS ALSO CONTENDED THAT THE COLLAPSE OF BELL ATLANTIC CORP'S PLANNED ACQUISITION OF TELECOMMUNICATIONS INC MEANS IT WILL BE TOUGHER TO FIND A BUYER FOR MACLEAN HUNTER'S US CABLE OPERATIONS ROGERS HAS SAID IT WOULD SELL MACLEAN HUNTER'S US CABLE SYSTEMS AND USE THE PROCEEDS TO REPAY BANKS THAT WOULD FINANCE ITS PROPOSED ACQUISITION MACLEAN HUNTER ALSO IS SEEKING BUYERS FOR THE ASSETS AS PART OF AN EFFORT TO DEMONSTRATE IT CAN OFFER SHAREHOLDERS AS MUCH OR MORE VALUE THAN ROGERS BUT MANY ANALYSTS DISMISSED MR ROGERS'S COMMENTS AS MORE SABERRATTLING IN THE ESCALATING BATTLE WITH MACLEAN HUNTER I DON'T SEE THIS SMALL DECLINE IN VALUE AS BEING VERY MATERIAL IN THE LONG RUN SAID ANDREW MCCREATH AN ANALYST AT GORDON CAPITAL CORP IN TORONTO THE US CABLE OPERATIONS' CASH FLOW MIGHT FALL ABOUT 5 REDUCING THE VALUE OF MACLEAN HUNTER SHARES BY ABOUT 42 CANADIAN CENTS HE SAID NEVERTHELESS FEARS THAT MR ROGERS WOULD WALK AWAY FROM HIS BID AFTER THE FCC RULING PUSHED MACLEAN HUNTER'S SHARES DOWN LATE LAST WEEK THE STOCK FINISHED UNCHANGED FRIDAY AT C16 A SHARE AFTER TRADING FOR AS LITTLE AS C15 A SHARE DURING THE DAY BUT MR ROGERS SAID HE PLANS TO LEAVE HIS BID ON THE TABLE AT LEAST UNTIL THE MARCH 15 EXPIRATION DATE AFTER THAT HE SAID WE'D HAVE TO LOOK AT WHETHER OR NOT TO EXTEND THE BID IF WE HAVEN'T HAD TWOTHIRDS ACCEPTANCE AND AT WHICH PRICE STILL MR ROGERS ACKNOWLEDGED THE CANADIAN BANKS THAT HAVE AGREED TO FINANCE THE PROPOSED ACQUISITION HAVEN'T DISPLAYED ONE SCINTILLA OF CONCERN OVER ANY DECLINE IN VALUES MR ROGERS IS ALSO FIGHTING TO MAKE SURE HE IS ABLE TO BID FOR ANY ASSETS MACLEAN HUNTER DECIDES TO SELL IN A PROVINCIAL COURT HEARING YESTERDAY IN TORONTO ROGERS ARGUED IT SHOULD HAVE ACCESS TO DATA ROOMS SET UP BY MACLEAN HUNTER FOR PROSPECTIVE BIDDERS FOR ITS US AND CANADIAN CABLE ASSETS WITHOUT HAVING TO AGREE TO WITHDRAW ITS TAKEOVER OFFER AND TO HOLD OFF ON RENEWING SUCH AN OFFER FOR AT LEAST THREE YEARS AS MACLEAN HUNTER HAS REQUESTED THE JUDGE DIDN'T IMMEDIATELY ISSUE A RULING MACLEAN HUNTER'S PRESIDENT RONALD OSBORNE DECLINED ALL COMMENT 9402280102 940228 AMWAY JAPAN TO INVEST IN US TOKYO AMWAY JAPAN LTD SAID IT ESTABLISHED AMWAY JAPAN ENTERPRISES INC A US UNIT THAT WILL INVEST THE JAPANBASED PARENT'S CASH PRIMARILY IN US SECURITIES AMWAY JAPAN AN INDEPENDENT PUBLICLY TRADED COMPANY SPUN OFF FROM PRIVATELY HELD DIRECT SELLER AMWAY CORP IN 1991 SAID IT WILL PROVIDE AS MUCH AS 300 MILLION IN INVESTMENT CAPITAL TO THE UNIT 9402280101 940228 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITAIN TRIED TO PLACATE MALAYSIA AFTER THE KUALA LUMPUR GOVERNMENT ENRAGED BY BRITISH PRESS ALLEGATIONS BARRED BRITISH FIRMS FROM NEW GOVERNMENT CONTRACTS BUT THE CONFLICT ESCALATED OVER THE WEEKEND AND COULD SPREAD TO THE PRIVATE SECTOR THE NEWS REPORTS HAVE ALLEGED FOR SEVERAL MONTHS THAT MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD AND OTHER POLITICIANS HAD BEEN OFFERED BRIBES BY A BRITISH CONSTRUCTION COMPANY TO WIN A CONTRACT FOR AN ALUMINUM SMELTER SOME PRESS REPORTS ALSO HAVE CRITICIZED THE LINK BETWEEN A 348 MILLION GRANT FOR A HYDROELECTRIC DAM AND A 193 BILLION ARMS DEAL THE BAN SIGNALS THE LOSS OF HUGE DEALS FOR BRITISH FIRMS INCLUDING CONTRACTS FOR BUILDING A 32 BILLION INTERNATIONAL AIRPORT NEAR KUALA LUMPUR MALAYSIA A FORMER BRITISH COLONY IS THE UK'S SECONDBIGGEST ASIANPACIFIC MARKET AFTER HONG KONG CHIEF MINISTERS FROM MALAYSIA'S 13 STATES BACKED THE FEDERAL BAN AND SEVERAL MALAYSIAN COMPANIES HAVE ENDORSED IT BRITISH FOREIGN SECRETARY DOUGLAS HURD SAID THAT HIS GOVERNMENT WAS TRYING TO RESOLVE THE DISPUTE BUT THAT IT WOULDN'T APOLOGIZE FOR BRITAIN'S FREE PRESS AUSTRALIA'S FEDERAL STATE AND TERRITORIAL GOVERNMENTS AGREED TO PURSUE OPENING KEY AREAS OF THE ECONOMY TO MORE COMPETITION THE PLAN WOULD ALLOW BUSINESS RIVALRIES IN AREAS RESERVED FOR STATE ENTERPRISES SUCH AS PORTS GOVERNMENTS RELY ON REVENUE FROM SUCH OPERATIONS BUT OPENING SOME OF THEM TO COMPETITION COULD PRODUCE HIGHER TAX RECEIPTS THE VARIOUS GOVERNMENTS WILL DRAFT LEGISLATION ON THE ISSUE TO CONSIDER WHEN THE REPRESENTATIVES MEET IN AUGUST CHINA'S LABOR MINISTRY WILL OPEN A NATIONAL TELEPHONE HOTLINE FOR WORKERS AIMED AT PROTECTING THEIR RIGHTS IT SINGLED OUT FOREIGNFUNDED ENTERPRISES SAYING THEY OFTEN ABUSE CHINESE EMPLOYEES THE OFFICIAL CHINA DAILY SAID 250000 STRIKES AND LABOR DISPUTES SINCE 1988 WERE USUALLY CAUSED BY AMBIGUOUS CONTRACTS LONG HOURS LOW PAY AND UNSAFE WORKING CONDITIONS THE OFFICIAL PRESS HAS INCREASINGLY REPORTED ON HARSH CONDITIONS IN CHINA'S BOOMING COASTAL EXPORTPROCESSING AREAS THE HONG KONG GOVERNMENT IGNORING CHINA'S WRATH PUBLISHED PLANS TO WIDEN DEMOCRACY IN THE BRITISH COLONY THE REFORM BILL WOULD ALLOW HONG KONG TO ELECT ALL 60 MEMBERS OF THE LEGISLATIVE COUNCIL IN 1995 LEGISLATORS NOW ARE ELECTED AND APPOINTED THE BILL TO GO TO LAWMAKERS MARCH 9 WOULD CREATE NINE SPECIALINTEREST CONSTITUENCIES TO ENFRANCHISE ALL OF HONG KONG'S 27 MILLION WORKERS IT CONTAINS THE MORE RADICAL ELEMENTS OF THE REFORM PACKAGE PROPOSED LAST YEAR BY GOV CHRIS PATTEN AFTER LEGISLATORS LAST WEEK PASSED A FIRSTPHASE BILL OF MINOR REFORMS CHINA VOWED TO DISBAND ALL ELECTED BODIES IN 1997 WHEN IT TAKES OVER SOVEREIGNTY GERMAN LEGISLATORS VOTED TO ALLOW BERLIN'S REICHSTAG THE ONCE AND FUTURE SEAT OF THE PARLIAMENT TO BE SWATHED IN SILVER FABRIC BY CHRISTO JAVACHEFF THE 58YEAR OLD BULGARIANBORN PACKAGING ARTIST NOW AN AMERICAN KNOWN BY HIS FIRST NAME HAD BEEN REBUFFED REPEATEDLY IN HIS 23YEAR CAMPAIGN FOR PERMISSION TO WRAP THE NEOCLASSICAL BUILDING IN CLOTH THE REICHSTAG WHICH WILL BE COVERED FOR TWO WEEKS IN 1995 HOUSED THE PARLIAMENT FROM 1894 TO 1933 AND WILL DO SO AGAIN IN 1998 AS THE GOVERNMENT RETURNS TO BERLIN FROM BONN INTENSIFYING ITS CONTROL OVER POPULATION GROWTH CHINA SAID IT WOULD TAKE LEGAL ACTION TO SEPARATE COUPLES WHO LIVE TOGETHER BEFORE THE OFFICIAL MARRIAGEABLE AGE 22 FOR MEN AND 20 FOR WOMEN UNDER THE NEW MARRIAGE RULES ALSO DESIGNED TO CURB BIRTHS THE GOVERNMENT MAY BLOCK UNIONS OF COUPLES DEEMED UNSUITABLE SUCH AS IN ARRANGED MERCENARY OR BIGAMOUS MARRIAGES OR THOSE BETWEEN CLOSE RELATIVES WHICH THE XINHUA NEWS AGENCY SAID ARE COMMON IN SOME AREAS OF THE 10 MILLION MARRIAGES EACH YEAR IN CHINA XINHUA SAID 16 MILLION INVOLVED PEOPLE BELOW THE LEGAL AGE CHINA THE WORLD'S MOST POPULOUS COUNTRY WITH 12 BILLION PEOPLE HAS AN EXTENSIVE FAMILYPLANNING SYSTEM WHICH TRIES TO LIMIT MOST FAMILIES TO ONE CHILD EACH WITH RELIGIOUS BELIEF SPREADING IN CHINA WHERE FOREIGN MISSIONARIES ENCOURAGE UNDERGROUND CHURCH MEETINGS THE GOVERNMENT SAID IT WOULD MAINTAIN STRICT CONTROL OVER RELIGION AND QUASH ANY ACTIVITIES BY FOREIGNERS THAT COULD HURT SOCIAL ORDER NORWAY LIFTED ITS OIL EMBARGO AND ECONOMIC SANCTIONS AGAINST SOUTH AFRICA WHICH HAS MOVED TO END APARTHEID AND HOLD DEMOCRATIC ELECTIONS A RUSSIAN NEWSPAPER REPORTED THAT WHEN FORMER SOVIET LEADERS REVIEWED RED SQUARE PARADES THE FUR HATS THEY WORE WERE FITTED WITH HIDDEN METAL PLATES TO PROTECT AGAINST ASSASSINATION THE SAME HELMET FACTORY NOW OFFERS SIMILAR HATS TO ENTREPRENEURS WHO FEAR ATTACKS BY GANGSTERS 9402280100 940228 DIVIDEND NEWS TRINET CORPORATE REALTY TRUST INC TRINET CORPORATE REALTY TRUST INC SAN FRANCISCO SAID IT INCREASED ITS QUARTERLY DIVIDEND 36 TO 58 CENTS A SHARE FROM 56 CENTS PAYABLE APRIL 15 TO STOCK OF RECORD MARCH 9 TRINET SAID THE INCREASE ITS THIRD STRAIGHT QUARTERLY INCREASE REFLECTS A BOOST IN PROFIT FROM ACQUISITIONS AMONG OTHER THINGS 9402280099 940228 HEDGE FUNDS FACE REVIEW OF PRACTICES BY MICHAEL R SESIT AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL RESERVE AND OTHER MAJOR CENTRAL BANKS PLAN TO TAKE A HARD LOOK AT HEDGE FUNDS' TRADING ACTIVITIES WITH AN EYE TO CONTROLLING THEIR AGGRESSIVE PRACTICES FOLLOWING THE HUGE SELLOFF IN GOVERNMENTBOND MARKETS DURING THE PAST FEW WEEKS US EUROPEAN AND JAPANESE MONETARY AUTHORITIES AND BANK REGULATORS ARE INCREASINGLY CONCERNED ABOUT THE IMPACT OF HEDGE FUNDS CENTRAL BANKERS HAVE TWO REASONS TO BE INTERESTED AS BANKING SUPERVISORS WE HAVE TO REGULATE BANK EXPOSURES FROM THE STANDPOINT OF LENDER'S RISK AND CREDIT RISK HEDGE FUNDS IN EFFECT ARE BORROWING FROM BANKS SAID ONE EUROPEAN CENTRAL BANKER THE OTHER AREA OF CONCERN IS MARKET MANAGEMENT DO THESE FUNDS MAKE MARKETS MORE UNSTABLE THAN THEY OTHERWISE WOULD BE HEDGE FUNDS ARE UNREGULATED PRIVATE INVESTMENT PARTNERSHIPS THAT ARE EXEMPTED FROM DISCLOSURE BECAUSE THEY ARE LIMITED TO 99 LIMITED PARTNERS THEY ARE RENOWNED FOR WAGERING HUGE SUMS IN GLOBAL CURRENCY BOND AND STOCK MARKETS IN SEARCH OF QUICK PROFITS THEY HAVE GROWN SO LARGE AND POWERFUL THAT THEIR AGGRESSIVE TRADING ACTIVITY MOVES MARKETS IN ADDITION TO FUNDS' HUGE BORROWINGS FROM BANKS CENTRAL BANKS ARE PARTICULARLY CONCERNED ABOUT THE WAY HEDGE FUNDS CAN USE DERIVATIVES SUCH AS FUTURES OPTIONS AND SWAPS TO INCREASE OR LEVERAGE THE BETS THEY CAN TAKE ON PARTICULAR MARKETS FOR EXAMPLE WITH ROUGHLY 10 BILLION UNDER MANAGEMENT HEDGEFUND MANAGER SOROS FUND MANAGEMENT IS IN A POSITION TO MARSHAL THE FIREPOWER OF SOMETHING LIKE 75 BILLION TO 150 BILLION SAID CHRISTOPHER GOLDEN AN INTERNATIONAL BOND STRATEGIST AT LEHMAN BROTHERS INTERNATIONAL IN LONDON LAST WEEK SOROS FUND MANAGEMENT ACKNOWLEDGED THAT IT HAD LOST 600 MILLION IN TWO DAYS BY WRONGLY GAMBLING THAT THE DOLLAR WOULD RISE AGAINST THE YEN THE DISCLOSURE CAME ON THE HEELS OF REVELATIONS OF HEAVY LOSSES AT OTHER LARGE HEDGE FUNDS THERE IS NO IMMINENT CRACKDOWN PLANNED BUT CENTRAL BANKERS SAID THAT HEDGE FUNDS' RISKTAKING ACTIVITIES NEED TO BE BETTER UNDERSTOOD AND THAT THEIR IMPACT ON GOVERNMENT BOND MARKETS WILL BE THE MAIN TOPIC OF DISCUSSION ON MARCH 7 AND 8 WHEN REPRESENTATIVES OF THE WORLD'S 11 MAJOR CENTRAL BANKS MEET IN BASEL SWITZERLAND IT ISN'T A QUESTION OF TIGHTER CONTROLS SAID AN EXECUTIVE AT THE BUNDESBANK GERMANY'S CENTRAL BANK IN FRANKFURT WE HAVE TO STUDY THE EFFECT AND IMPACT OF DERIVATIVES ON THE MONETARY TRANSMISSION PROCESS BEFORE ONE COMES TO ANY CONCLUSIONS MEANWHILE EXAMINERS AT THE FEDERAL RESERVE BANK OF NEW YORK ARE CONCERNED ABOUT HOW WELL COMMERCIAL BANKS ARE MONITORING THEIR LOANS TO HEDGE FUNDS SPECIFICALLY THE LEVERAGE THE BANKS ARE ACCEPTING AND WHETHER THEY ARE KEEPING ON TOP OF HEDGE FUNDS' RECENT LOSSES THEY ALSO WORRY ABOUT THE MINIMUM DISCLOSURE INVOLVED IN LENDING TO FUNDS I BET THAT A LOT OF CENTRAL BANKS AND COMMERCIAL BANKS DON'T KNOW WHAT THESE GUYS ARE DOING WITH THE MONEY BANKS LEND THEM SAYS A SENIOR EXECUTIVE AT A LARGE US INVESTMENT BANK IN LONDON IF A HEDGE FUND GETS A LINE AT BANK A AND LEVERAGES 10 TIMES DOES BANK A KNOW IT IS ALSO GOING TO BANK B BORROWING THE SAME AMOUNT OF MONEY AND LEVERAGING 20 TIMES HE ADDED DO THE BANKS KNOW THE FUNDS ARE TAKING ONEWAY CASINOTYPE BETS THE HEAD OF ONE LARGE US HEDGE FUND SAID THAT COMMERCIAL BANKS BECAME MUCH MORE COMPLACENT ABOUT LENDING TO HEDGE FUNDS AFTER MANY OF THE FUNDS TURNED IN SPECTACULAR PERFORMANCES LAST YEAR HE SAID THAT BANKS BEGAN LENDING MORE MONEY TO MORE HEDGE FUNDS MANY OF WHICH WERE NEW ONES CREATED TO GET IN ON WHAT LOOKED LIKE EASY PROFITS AND FAT FEES BUT THE HEDGEFUND MANAGER SAID THAT THE BANKS HAD LOST SIGHT OF HOW VOLATILE MARKETS CAN BE AND THAT BIG GAINS CAN EASILY TURN INTO BIG LOSSES TWO HEDGE FUNDS SAID THAT OFFICIALS FROM THEIR OWN LENDING BANKS WHICH NORMALLY MONITOR LOANS ONCE OR TWICE A MONTH WERE PAYING MORE FREQUENT VISITS IN THE WAKE OF THE BIG LOSSES HEDGE FUNDS HAVE RECENTLY SUFFERED AND WHILE THERE HAVE BEEN NO REPORTS OF COMMERCIAL BANKS ACTUALLY REDUCING OR CUTTING OFF CREDIT TO HEDGE FUNDS SOME BANKS HAD TIGHTENED THEIR RISK PARAMETERS MEANING THAT THEY ARE LIMITING THE AMOUNT OF BORROWED MONEY THAT A FUND MAY ALLOCATE TO A PARTICULAR SPECULATION NONETHELESS WHILE US REGULATIONS CURRENTLY RESTRICT HOW MUCH BANKS CAN LEND ON MARGIN FOR STOCK TRANSACTIONS THERE ARE NO SUCH LIMITS ON LOANS TO FUNDS THAT WOULD WANT TO USE THE MONEY FOR SPECULATION IN BOND MARKETS BEHIND THE CENTRAL BANKS' LATEST CONCERN LIE THE HUGE LOSSES THAT INVESTORS HAVE SUFFERED IN GLOBAL BOND MARKETS OVER THE PAST MONTH AND A HALF AND ESPECIALLY LAST WEEK WHEN FRENCH GERMAN AND BRITISH GOVERNMENT BOND PRICES FELL 14 TO 22 MUCH OF THE DECLINE IN PRICES AND RISE IN BOND YIELDS HAS BEEN ATTRIBUTED TO FORCED SELLING BY HIGHLY LEVERAGED HEDGE FUNDS THAT BET WRONGLY THAT EUROPEAN AND JAPANESE BOND YIELDS WOULD FALL IN MIDJANUARY ONE HEDGE FUND ASKED GOLDMAN SACHS & CO TO UNLOAD 25 BILLION OF 20YEAR JAPANESE GOVERNMENT BONDS BY THE TIME THE US INVESTMENT BANK COMPLETED THE TRADE THE BONDS' YIELD HAD JUMPED TO 430 FROM 370 GOLDMAN OFFICIALS SAID THEY DON'T COMMENT ON CLIENTS' ACTIVITIES THIS ISN'T THE FIRST TIME CENTRAL BANKS HAVE CONSIDERED TRYING TO DO SOMETHING ABOUT THE FREEWHEELING TRADING ACTIVITIES OF HEDGE FUNDS AND OTHER SPECULATORS SUCH AS THE PROPRIETARY TRADING DESKS OF BIG COMMERCIAL AND INVESTMENT BANKS A FORMER SENIOR CENTRAL BANKER SAID THAT SUCH ACTION WAS CONTEMPLATED IN SEPTEMBER 1992 WHEN SPECULATIVE ASSAULTS ON THE POUND AND LIRA FORCED BRITAIN AND ITALY TO PULL THEIR CURRENCIES OUT THE EUROPEAN EXCHANGERATE MECHANISM A JOINT FLOAT OF EUROPEAN CURRENCIES THAT TRADE WITHIN SPECIFIC BANDS OF ONE ANOTHER BANKERS AND EVEN SOME CENTRAL BANKERS ARE SKEPTICAL THAT ANYTHING MUCH CAN BE DONE TO RESTRAIN HEDGE FUNDS' AGGRESSIVE BEHAVIOR IN WORLD CURRENCY AND SECURITIES MARKETS SEVERAL BANKERS FELT THAT CENTRAL BANKS WOULD TRY TO JAWBONE BANKS INTO CUTTING BACK THEIR LENDING TO HEDGE FUNDS HOWEVER FROM A PRACTICAL POINT OF VIEW THE ABILITY OF BANKS TO LEND AGAINST COLLATERAL IS IMPOSSIBLE TO CONTROL SAID MR GOLDEN OF LEHMAN BROTHERS IN THE FUTURES MARKET THERE IS ABSOLUTELY NO ABILITY TO CONTROL HEDGE FUNDS' ACTIVITIES BUT ADDS THE LEHMAN BROTHERS EXECUTIVE EVERY BOND PORTFOLIO IS TAKING PAPER LOSSES WHICH IS WHAT IS WORRYING THE AUTHORITIES 9402280098 940228 DIVIDEND NEWS NOEL GROUP INC NOEL GROUP INC NEW YORK SAID IT IS DISTRIBUTING ALL ITS SERIES A COMMON STOCK HOLDING IN BELDING HEMINWAY CO AS A FORM OF DIVIDEND INCOME TO NOEL SHAREHOLDERS OF RECORD FEB 28 A TOTAL OF 3542404 SHARES OF BELDING SERIES A COMMON STOCK WITH A MARKET VALUE OF 20 CENTS A SHARE WILL BE DISTRIBUTED TO NOEL SHAREHOLDERS AT A RATIO OF 0175434 SHARE FOR EACH NOEL SHARE OWNED BELDING IS NEW YORK MAKER OF INDUSTRIAL THREADS AND HOMEFURNISHING FABRICS AS REPORTED THE DISTRIBUTED SHARES WILL BE STAPLED TO RELATED NOEL SHARES AND WILL TRADE AS A SINGLE UNIT UNTIL UNSTAPLING EXPECTED LATER THIS YEAR 9402280097 940228 POLITICS & POLICY RTC CHIEF ALTMAN RECUSES HIMSELF FROM MATTERS OF FAILED ARKANSAS THRIFT BY ALBERT R KARR AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEPUTY TREASURY SECRETARY ROGER ALTMAN WHO IS ALSO THE INTERIM HEAD OF THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY AND IS UNDER FIRE FROM REPUBLICANS RECUSED HIMSELF FROM MATTERS RELATING TO A FAILED ARKANSAS THRIFT MR ALTMAN ISSUED A TERSE STATEMENT SAYING THAT HIS TEMPORARY TERM AS CHIEF EXECUTIVE OF THE RESOLUTION TRUST CORP EXPIRES MARCH 30 AND THAT HE WON'T HAVE AN RTC ROLE BEYOND THAT DATE IN THE MEANTIME HE SAID HE WILL REFRAIN FROM ANY DECISIONS INVOLVING THE FAILED MADISON GUARANTY SAVINGS & LOAN CLINTON ADMINISTRATION OFFICIALS SAID MR ALTMAN DECIDED TO RECUSE HIMSELF BECAUSE NEWS ACCOUNTS DEPICTED HIM AS INVOLVED IN A SEEMING CONFLICT OF INTEREST STEMMING FROM A CONTACT WITH WHITE HOUSE OFFICIALS MR ALTMAN DISCLOSED THAT CONTACT IN A SENATE BANKING COMMITTEE HEARING THURSDAY IN THAT HEARING WHICH DEALT PARTLY WITH THE RTC'S ROLE IN OVERSEEING MADISON SINCE IT TOOK OVER THE FAILED THRIFT IN LATE 1989 MR ALTMAN SAID HE MET EARLY THIS MONTH WITH SEVERAL WHITE HOUSE OFFICIALS TO BRIEF THEM ON THE TIMETABLE FOR ANY POSSIBLE RTC LAWSUITS AGAINST PERSONS DEEMED RESPONSIBLE FOR THE MADISON FAILURE GOP ALLEGATIONS AND A PERSISTENT FLOW OF NEWS DISCLOSURES HAVE LINKED THE ARKANSAS THRIFT TO HELPING PRESIDENT CLINTON WHO WAS THEN ARKANSAS GOVERNOR AND HILLARY RODHAM CLINTON FINANCE THEIR INVESTMENT IN WHITEWATER DEVELOPMENT CORP A NORTH ARKANSAS LANDDEVELOPMENT VENTURE AND TO HELPING RAISE MONEY FOR MR CLINTON'S GUBERNATORIAL CAMPAIGN DEBTS THE WHITEWATER ISSUE WAS KEPT ALIVE IN THE HOUSE FRIDAY WHEN IOWA REP JIM LEACH THE RANKING REPUBLICAN ON THE HOUSE BANKING COMMITTEE RELEASED A TRANSCRIPT OF A TAPED 1992 CONVERSATION IN WHICH JAMES MCDOUGAL THE CLINTONS' FORMER PARTNER IN WHITEWATER CHALLENGED THE CLINTONS' ACCOUNTING OF THEIR INVESTMENT IN THE VENTURE IN THE CONVERSATION WITH SHEFFIELD NELSON WHO RAN AGAINST THENGOV CLINTON IN 1990 MR MCDOUGAL CHARGED THAT THE CLINTONS WRONGFULLY CLAIMED ON THEIR 1980 FEDERALINCOME TAX RETURNS THAT THEY HAD MADE A WHITEWATERRELATED INTEREST PAYMENT OF 9000 TO HIM THEY HAVE NEVER PAID ME A PENNY'S INTEREST MR MCDOUGAL TOLD MR NELSON THEY NEVER OWED ME ANY MONEY BRUCE LINDSEY A SENIOR WHITE HOUSE AIDE HAS SAID THAT MR MCDOUGAL IS CONFUSED ABOUT THIS AND THAT HE BELIEVES THE CLINTONS PAID MR MCDOUGAL 9000 AS REIMBURSEMENT FOR INTEREST PAID ON A JOINT LOAN USED TO FINANCE THE WHITEWATER VENTURE ACCORDING TO THE TRANSCRIPT MR MCDOUGAL ALSO SAID THE CLINTONS HAD PERSONALLY SOLD A CORPORATE ASSET A MODEL HOME AND A WHITEWATER LOT FOR WHICH WHITEWATER HAD MADE ALL THE PAYMENTS MR LINDSEY COUNTERED THAT THE CLINTONS MADE SOME OF THE PAYMENTS MR MCDOUGAL LATELY HAS SAID THAT THE CLINTONS PUT ONLY 13500 INTO WHITEWATER WHILE THE CLINTONS HAVE INSISTED THAT THEY INVESTED AND LOST 68900 IN A MEMO TO REPUBLICAN COMMITTEE MEMBERS REP LEACH SAID THAT MR MCDOUGAL'S COMMENTS APPEAR TO INDICATE THAT THE CLINTONS LOST NO MONEY IN WHITEWATER AND SUGGEST THAT THE TAX CONSEQUENCES WHICH EMANATE FROM THIS VENTURE MERIT CAREFUL SCRUTINY AT THE SENATE BANKING COMMITTEE HEARING THURSDAY MR ALTMAN A LONGTIME FRIEND OF THE CLINTONS SAID HE INITIATED THE MEETING WITH THE WHITE HOUSE OFFICIALS SOLELY TO BE SURE THAT WHITE HOUSE COUNSEL BERNARD NUSSBAUM UNDERSTOOD THE LEGAL AND PROCEDURAL FRAMEWORK IN WHICH THE RTC WAS WORKING HE SAID HE TOLD PARTICIPANTS OF THE MEETING THAT HE HAD INSTRUCTED THE RTC STAFF TO HANDLE THE MADISON CASE EXACTLY IDENTICAL TO ITS HANDLING OF OTHER CASES ADMINISTRATION OFFICIALS SAID THAT IF THERE HAD BEEN ANY HINT OF RTC FAVORITISM TO THE CLINTONS OR OTHER ADMINISTRATION OFFICIALS WHO WERE CLINTON ASSOCIATES IN ARKANSAS IT WOULD HAVE QUICKLY COME OUT IN LEAKED NEWS ACCOUNTS MR ALTMAN HAD PREVIOUSLY ASKED THE GOVERNMENT ETHICS OFFICE AND BOTH THE TREASURY AND RTC ETHICS OFFICERS IF HE SHOULD RECUSE HIMSELF FROM MADISON ISSUES AND WAS TOLD HE WASN'T LEGALLY OBLIGATED TO DO SO OFFICIALS SAID NEW YORK SEN ALFONSE D'AMATO THE RANKING REPUBLICAN ON THE BANKING COMMITTEE HAD SEVERAL TIMES CALLED FOR MR ALTMAN TO REMOVE HIMSELF FROM RTC DECISIONS CONCERNING MADISON IN AN INTERVIEW YESTERDAY THE SENATOR SAID HE WILL ASK THE PARTICIPANTS AT THE WHITE HOUSE MEETING TO TESTIFY BEFORE THE COMMITTEE SEPARATELY SEN D'AMATO WHO HAS HELPED LEAD GOP ATTACKS ON THE CLINTONS' WHITEWATER INVOLVEMENT RELEASED A CONFRONTATIONAL LETTER WRITTEN TO HIM ON FRIDAY BY DAVID WILHELM THE DEMOCRATIC NATIONAL COMMITTEE CHAIRMAN THE SENATOR DENOUNCED WHAT HE CALLED MR WILHELM'S POLITICAL INTIMIDATION TACTICS AS AIMED AT STIFLING FURTHER WHITEWATERMADISON PROBING SEN D'AMATO ACCUSED THE CLINTONS OF USING THEIR HANDPICKED POLITICAL HATCHETMAN TO TRY AND INTIMIDATE THE LEGITIMATE OVERSIGHT RESPONSIBILITIES I HAVE AS A SENATOR MR WILHELM WROTE THAT ACCUSATIONS OF CONFLICT OF INTEREST SEEM MORE APPROPRIATELY APPLIED TO SEN D'AMATO HIMSELF THE DNC CHIEF RECOUNTED AMONG OTHER THINGS THAT THE SENATE ETHICS COMMITTEE HAD FOUND THAT SEN D'AMATO ACTED IN AN IMPROPER AND INAPPROPRIATE MANNER BY ALLOWING HIS BROTHER ARMAND TO USE THE SENATOR'S OFFICE ON BEHALF OF A LAW CLIENT SEEKING A PENTAGON CONTRACT MR WILHELM ALSO MENTIONED A CASE IN WHICH EMPLOYEES OF THE TOWN OF HEMPSTEAD NY WERE FORCED TO MAKE PAYMENTS TO THE NASSAU COUNTY REPUBLICAN COMMITTEE THREE LAW SCHOOL DEANS SAID THAT LATER EVIDENCE SHOWED THAT THE SENATOR WHO HAD BEEN HEMPSTEAD'S SUPERVISOR AND A NASSAU COUNTY REPUBLICAN OFFICIAL HAD PROBABLY PERJURED HIMSELF IN 1975 GRAND JURY TESTIMONY MR WILHELM SAID BUT BY THE TIME THAT EVIDENCE EMERGED MR WILHELM SAID MR D'AMATO WAS IMMUNE FROM PROSECUTION BECAUSE THE STATUTE OF LIMITATIONS HAD RUN OUT IN THE INTERVIEW SEN D'AMATO SAID THAT SUCH MATTERS ARE NOT RELEVANT TO WHITEWATERMADISON HE SAID THE APPROPRIATENESS OF MY BROTHER'S CONDUCT WILL BE DETERMINED BY THE COURTS THE SENATOR ALSO CALLED THE ALLEGATIONS OF PERJURY TOTAL NONSENSE 9402280096 940228 ABREAST OF THE MARKET BEAR MARKET OR CORRECTION THE DEFENSIVE STRATEGIES DIFFER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RELAX THE BEAR IS STILL IN HIS DEN INVESTORS PONDERING THE TURMOIL IN THE STOCK MARKET FOR THE PAST FEW WEEKS MAY BE FORGIVEN FOR THINKING THIS COULD BE THE START OF SOMETHING BAD AND BEARISH AFTER ALL THE GOOD TIMES HAVE ROLLED FOR SO LONG THAT IT'S ABOUT TIME FOR SOME BAD NEWS BUT WITH A FEW EXCEPTIONS ANALYSTS SURVEYING THE MARKET FIGURE THIS IS JUST A LONGOVERDUE CORRECTION REQUIRING SOME MODERATE DEFENSIVE MOVES AND NOT THE BEGINNING OF A FULLBLOWN BEAR MARKET THE TYPICAL REACTION TO A BEAR MARKET WHICH USUALLY DRAGS DOWN STOCK PRICES 20 OR MORE OVER A PROLONGED PERIOD OF TIME IS TO LOAD UP ON USUAL DEFENSIVE STOCKS LIKE UTILITIES AND CONSUMER NONDURABLE SHARES SINCE BEAR MARKETS GENERALLY OCCUR BECAUSE INVESTORS EXPECT CORPORATE PROFIT GROWTH TO SLOW SHARPLY BUYING STOCKS WITH FAT DIVIDEND YIELDS LIKE UTILITIES OFFER A BETTER CUSHION IN A SLUGGISH EARNINGS ENVIRONMENT THAN ECONOMICALLY SENSITIVE STOCKS WHICH CARRY SKIMPIER DIVIDENDS BUT THAT'S USUALLY THE WRONG REACTION IN A CORRECTION UNLIKE BEAR MARKETS CORRECTIONS ARE LESS PROLONGED FAR LESS TORTUOUS AND GENERALLY AMOUNT TO A BRIEF INTERRUPTION IN THE OVERALL BULL MARKET TREND RIGHT NOW ESTIMATES ARE THAT STOCK PRICES IN THE CURRENT CORRECTION WILL DROP ANYWHERE FROM 5 TO 15 BELOW THE PEAKS SET EARLIER THIS YEAR IF YOU ARE IN A BULL MARKET AND THE ECONOMY IS STILL IN THE EARLY STAGES OF RECOVERING THE STOCKS THAT HOLD UP THE BEST DURING A CORRECTION ARE DIFFERENT THAN WHEN YOU ARE IN THE EARLY STAGES OF A BEAR MARKET SAYS CHARLES CLOUGH STOCK STRATEGIST AT MERRILL LYNCH LIKE MOST STOCK ANALYSTS MR CLOUGH THINKS THAT THE RECENT BLAST OF SELLING WHICH HAS DRIVEN THE DOW JONES INDUSTRIAL AVERAGE DOWN 35 FROM ITS PEAK OF 397836 EARLIER THIS YEAR IS JUST A CORRECTION CREDIT GROWTH IS MODERATE INFLATION ISN'T A PROBLEM YET AND THE FEDERAL RESERVE HASN'T RAISED INTEREST RATES TO THE POINT OF SLOWING ECONOMIC ACTIVITY MOREOVER WITH THE ECONOMY REVVING UP CORPORATE PROFITS WHICH HAVE BEEN STUNTED UNTIL NOW BY SLUGGISH BUSINESS ACTIVITY ARE LIKELY TO REMAIN STRONG PROVIDING A SOLID UNDERPINNING FOR THE CONTINUING BULL MARKET THIS CORRECTION IS CERTAINLY DIFFERENT FROM 1989 AND 1990 SAYS MR CLOUGH BACK THEN MR CLOUGH SAYS STOCK INVESTORS WERE FACING AN ECONOMY THAT WAS HEADED INTO RECESSION AS A RESULT WHEN STOCK PRICES PULLED BACK IN BOTH THOSE YEARS UTILITY STOCKS AND CONSUMER NONDURABLE SHARES GENERALLY FARED BETTER THAN THE BROADER MARKET BUT TODAY WITH THE ECONOMY SQUARELY ON THE EXPANSION TRAIL MR CLOUGH THINKS THAT DEEPER CYCLICAL STOCKS OR SECTORS THAT TEND TO CREST LATE IN THE ECONOMIC CYCLE WILL WIND UP OUTPERFORMING THE OVERALL MARKET UNDERSTAND THAT THERE ARE SOME STOCKS THAT HAVE PROBABLY PEAKED FOR THE CYCLE LIKE UTILITIES MOST FINANCIAL STOCKS AND CREDITSENSITIVE STOCKS LIKE HOME BUILDERS SAYS MR CLOUGH BUT DEEPER CYCLICAL STOCKS LIKE AUTOS AND TRUCKING WILL GO HIGHER SO WILL PUBLISHING STOCKS CAPITAL SPENDINGRELATED COMPANIES AND REAL ESTATE INVESTMENT TRUSTS OR REITS SAYS MR CLOUGH UNLIKE UTILITIES REITS OFFER MUCH JUICIER YIELDS AND ARE LIKELY TO BENEFIT AS PROPERTY VALUES RECOVER WITH THE IMPROVING ECONOMY TO SOME STOCK STRATEGISTS IT'S ONLY LOGICAL THAT ECONOMICALLY SENSITIVE STOCKS WILL BE THE STARS GOING FORWARD DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAYS THIS CORRECTION HAS BEEN PRECIPITATED BY A STRENGTHENING ECONOMY THAT IS PUSHING INTEREST RATES HIGHER THAT'S WHY HE'S BETTING ON SECTORS OF THE MARKET THAT SEEM MORE RISKY SUCH AS TECHNOLOGY AND SHARES OF ECONOMICALLYSENSITIVE COMPANIES WHILE SHUNNING USUAL HAVENS LIKE UTILITY STOCKS AND CONSUMER NONDURABLE SHARES IF THIS WAS A FULLBLOWN BEAR MARKET I THINK THE ECONOMICALLY SENSITIVE STOCKS WOULD GET HIT HARD SAYS MR SHULMAN BUT SINCE I THINK THE WEAKNESS IN THE MARKET IS COMING FROM A STRENGTHENING ECONOMY I WANT TO PLAY ON THAT STRENGTH THOUGH ECONOMICALLY SENSITIVE STOCKS TUMBLED DURING LAST WEEK'S SELLOFF CYCLICAL SHARES GENERALLY PERFORMED BETTER THAN UTILITY AND GOLD STOCKS THE USUAL STANDBYS FOR CONSERVATIVE INVESTORS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS IS SO CONFIDENT THAT THE CURRENT CORRECTION IS A MERE BLIP IN THE BULL MARKET THAT SHE ISN'T RECOMMENDING ANY DEFENSIVE MEASURES SHE FIGURES THE DOWNTURN WILL BE OVER IN A FEW WEEKS IN THE PAST SHE NOTES AN INCREASE IN SHORTTERM RATES BY THE FEDERAL RESERVE HAS TYPICALLY TRIGGERED A FOURWEEK TO EIGHTWEEK RETREAT IN STOCK PRICES THAT AVERAGES ABOUT 5 AND WITH STOCK MARKET SENTIMENT AS CAUTIOUS AS IT IS NOW AND SHORTTERM RATES STILL LOW BY ALMOST ANY MEASURE SHE THINKS STOCKS ARE POISED FOR FURTHER GAINS OF COURSE SOME STOCK STRATEGISTS LIKE GAIL DUDACK OF SG WARBURG THINK THE STOCK MARKET IS SO TREACHEROUS TODAY THAT THERE ARE NO SECTORS THAT OFFER COMFORT SHE STARTED RAISING CASH IN LATE DECEMBER AND EARLY JANUARY IN ANTICIPATION OF A CORRECTION THAT WOULD TAKE STOCKS PRICES LOWER IN THE FIRST QUARTER PEOPLE HAVE BEEN ASKING ME ALL DAY ABOUT SAFE HAVENS BUT QUITE FRANKLY I DON'T SEE ANY GREAT ONES OUT THERE SAYS MS DUDACK NOT SURPRISING SAYS GARY SHILLING WHO HEADS A CONSULTING COMPANY THAT BEARS HIS NAME I THINK WE'VE PROBABLY ENTERED A BEAR MARKET SAYS THIS LONGTIME GRIZZLY BY RAISING SHORTTERM RATES THE FED HOPED TO HEAD OFF INCREASES IN INFLATION AND IRONICALLY I THINK THEY WILL GET THE BOOMBUST SCENARIO THEY HOPED TO AVOID MR SHILLING SAYS THE PROSPECT THAT RATES ARE RISING WILL SEND CONSUMERS RUSHING OUT TO BUY HOUSES AND CARS BOLSTERING THE ECONOMY OVER THE NEXT FEW MONTHS BUT BY YEAR END CONSUMERS WILL BE SPENT AND INTEREST RATES WILL BE HIGHER FORCING A SUDDEN SLOWDOWN IN ECONOMIC GROWTH TROUBLE IS PEOPLE HAVE BEEN SO SUCCESSFUL WITH BUYING THESE LAST COUPLE OF YEARS THAT IT MAY TAKE A LONG TIME BEFORE THEY ARE DISABUSED OF THEIR HOPE SAYS MR SHILLING STOCKS ENDED MIXED AS BOND PRICES STABLIZED THE DOW JONES INDUSTRIAL AVERAGE LOST 112 POINTS TO 383878 STANDARD & POOR'S 500STOCK INDEX GAINED 181 POINTS TO 46607 AND THE NASDAQ COMPOSITE INDEX ROSE 434 TO 78378 VOLUME ON THE BIG BOARD TOTALED 273220000 SHARES DOWN FROM 341620000 SHARES THURSDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1169 TO 963 FOR THE WEEK THE INDUSTRIAL AVERAGE DROPPED 125 THE S&P 500 FELL 03 AND THE NASDAQ COMPOSITE LOST 06 WEAKNESS IN CYCLICAL STOCKS AND IN SHARES OF OIL PRODUCER CHEVRON PUT A LID ON FURTHER GAINS IN THE INDUSTRIAL AVERAGE CHEVRON LOST 1 1/2 TO 85 3/4 WHILE OTHER MAJOR OIL STOCKS WERE MIXED AMID A DROP IN OIL PRICES AUTO STOCKS LED THE RETREAT IN ECONOMICALLY SENSITIVE ISSUES GENERAL MOTORS DROPPED 3/4 TO 58 1/4 FORD MOTOR LOST 1 TO 61 1/2 AND CHRYSLER SHED 3/8 TO 56 MICHIGAN NATIONAL SURGED 3 1/4 TO 63 3/4 ON NASDAQ HEINE SECURITIES A SHORT HILLS NJ INVESTMENT ADVISER SAID IT WILL PUSH THE FARMINGTON HILLS MICH COMPANY TO SEEK AN ACQUIRER HEINE HOLDS A 55 STAKE COMPUTER SCIENCES RALLIED 2 5/8 TO 39 7/8 A DEAN WITTER REYNOLDS ANALYST UPGRADED A RATING ON THE EL SEGUNDO CALIF COMPANY'S STOCK TO BUY DEAN WITTER HAD RATED SHARES OF THE COMPUTER AND COMMUNICATIONS SYSTEMS PROVIDER NEUTRAL INFORMIX CLIMBED 2 3/4 TO 23 3/8 ON NASDAQ AFTER SALOMON BROTHERS UPGRADED THE STOCK TO BUY FROM HOLD SALOMON RAISED ITS ESTIMATE OF THE MENLO PARK CALIF SOFTWARE COMPANY'S 1994 EARNINGS TO 105 A SHARE UP FROM A PRIOR FORECAST OF 98 CENTS A SHARE IN 1993 INFORMIX HAD A PROFIT OF 83 CENTS A SHARE RAYTHEON JUMPED 1 3/8 TO 62 WHILE LORAL LOST 5/8 TO 38 3/8 A DEFENSE DEPARTMENT BOARD RESPONSIBLE FOR AWARDING CONTRACTS HAS POSTPONED A MEETING AT WHICH IT WAS EXPECTED TO GIVE A MISSILE INTERCEPTOR PACT TO LORAL ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION RAYTHEON IS MAKING A COMPETING SYSTEM WM WRIGLEY JR RALLIED 3 1/2 TO 48 USA TODAY REPORTED SPECULATION THAT INVESTOR WARREN BUFFETT COULD BE INTERESTED IN BUILDING A STAKE IN THE CHICAGO CHEWING GUM COMPANY CNA FINANCIAL CONTINUED TO SLIDE LOSING 3 1/4 TO 69 AFTER LOSING 5 3/4 THURSDAY THE CHICAGO COMPANY'S STOCK IS TO BE REMOVED FROM THE S&P 500 INDEX SHARES OF KEYCORP BASED IN ALBANY NY WILL REPLACE CNA THAT STOCK WAS UP 1 1/2 TO 37 1/2 INVESTMENT MANAGERS WHOSE PORTFOLIOS ARE DESIGNED TO MATCH THE S&P 500 OFTEN BUY AND SELL STOCKS AS THEY ARE ADDED AND REMOVED FROM THAT INDEX DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9402280095 940228 COMPUTERS MANY PC MAKERS STEER CLEAR OF INFORMATION HIGHWAY BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL THE COLLAPSE OF TCI AND BELL ATLANTIC'S INFORMATIONHIGHWAY MEGADEAL RAISES A QUESTION MANY PERSONAL COMPUTER MAKERS HAVE BEEN ASKING FOR MONTHS WHAT'S ALL THE FUSS ABOUT ANYWAY WHILE THE TOP TIER OF COMPUTER COMPANIES HAS JUMPED INTO THE FRAY THE REST OF THE PACK WHICH ACCOUNTS FOR NEARLY TWOTHIRDS OF ALL COMPUTERS SOLD HAS TREATED THE INFORMATIONHIGHWAY CONCEPT WITH DISDAIN NOW THAT THE MERGER THAT SET OFF THE FRENZY IS OVER MANY PC MAKERS MAY BECOME BOLDER IN PRESSING THEIR VIEW THE PC COMPANIES ARE MORE REALISTIC THAN A LOT OF OTHER PEOPLE SAYS GATEWAY 2000 INC'S CHIEF EXECUTIVE TED WAITT I'M NOT LOSING ANY SLEEP BECAUSE I HAVEN'T AMASSED 12 ALLIANCES WITH UMPTEENGAZILLION DIFFERENT COMPANIES FOR ALL THEIR BRAVADO THOUGH THE INFORMATIONHIGHWAY DISCUSSION AND THE SERIOUS MONEY BEHIND IT HAS CAUGHT MANY PC EXECUTIVES OFFGUARD WHILE THE BELL ATLANTICTCI PACT HAS COLLAPSED DOZENS OF OTHER DEALS ARE BEING CUT WITHOUT THE PC MAKERS' INPUT SOME PUNDITS ARE EVEN DESCRIBING A 500CHANNEL ALLDIGITAL INTERACTIVE FUTURE THAT DOESN'T INVOLVE PCS CLEARLY SOME OF THE SKEPTICISM COMING FROM THE PC INDUSTRY REPRESENTS BATTLE SCARS THAT HAVEN'T YET HEALED PC EXECUTIVES HAVE ALREADY LIVED THROUGH A NUMBER OF ADVANCES THAT NEVER WENT ANYWHERE OR ARRIVED YEARS LATE REMEMBER ARTIFICIAL INTELLIGENCE AND PENBASED PCS SOME COMPUTER EXECUTIVES SAY THEY SEE SIMILARITIES BETWEEN THE BALLYHOO SURROUNDING THOSE PRODUCTS AND THE CURRENT FASCINATION WITH INFORMATIONHIGHWAY TECHNOLOGY IT'S ALL HYPE SAYS SAFI U QURESHEY CHIEF EXECUTIVE OF AST RESEARCH INC IRVINE CALIF AT THE CORE OF MR QURESHEY'S VIEW IS THE BELIEF THAT THE PC AND NOT THE TELEVISION OR ANY HYBRID OF THE TWO WILL BE THE VEHICLE OF CHOICE FOR CRUISING THE HIGHWAY HE NOTES THAT TV SETS HAVE RELATIVELY POOR SCREENS FOR VIEWING TEXT CAN'T STORE INFORMATION IN LARGE QUANTITIES AND DON'T HAVE THE DATAPROCESSING POWER OF EVEN WEAK PCS THE JAZZEDUP REMOTE CONTROL DEVICES BEING DEVELOPED TO INTERACT WITH SETTOP TV BOXES DON'T HAVE AS MUCH FLEXIBILITY AS COMPUTER KEYBOARDS AND THE VOICEINPUT SYSTEMS BEING TESTED AT MAJOR COMPUTER COMPANIES HE SAYS DELL COMPUTER CORP'S CHIEF EXECUTIVE MICHAEL S DELL HAS ALSO BEEN HIGHLY CRITICAL OF THE INFORMATIONHIGHWAY HOOPLA I'M NOT CONVINCED SETTOP BOXES WILL INHERIT THE EARTH MR DELL SAYS IT ALL SEEMS A LITTLE FUNNY TO ME STILL IT IS A DISTINCTLY DIFFERENT WORLD THESE DAYS FOR ALL BUT THE BIGGEST PC COMPANIES MANY OF THEM ROSE TO PROMINENCE MORE THAN A DECADE AGO AS THE HIP BRASH JOCKEYS OF THE INFORMATION AGE BUT THE SPATE OF MERGERS AND ALLIANCES INVOLVING CABLE TV ENTERTAINMENT AND TELECOMMUNICATIONS CONCERNS HAS RAISED QUESTIONS AMONG SOME ANALYSTS ABOUT WHETHER PERSONAL COMPUTER COMPANIES LONG SYNONYMOUS WITH THE LATEST AND GREATEST IN TECHNOLOGY HAVE LOST THEIR EDGE THESE COMPANIES HAVE BEEN IN THE DRIVER'S SEAT FOR THE LAST 10 TO 12 YEARS AND THEY THINK THEY'RE STILL THERE SAYS PRINCETON NJ WRITER STEVEN SCHLOSSSTEIN WHO IS WORKING ON A BOOK ABOUT INTERACTIVE TV I DON'T THINK IT'S HIT THEM YET OF COURSE SOME OF THE BIGGEST PLAYERS IN THE PC GAME ARE WORKING HARD TO CARVE OUT A PLACE FOR THEMSELVES IN CASE THIS NEW WORLD DOES EMERGE COMPAQ COMPUTER CORP THE HOT HOUSTON PC MAKER IS ONE OF THE MOST AGGRESSIVE PARTICIPANTS IN LAYING THE GROUNDWORK FOR THE HIGHWAY THOUGH IT HASN'T GONE PUBLIC WITH ITS EFFORTS THE COMPANY HIRED A FORMER MCKINSEY & CO CONSULTANT LAST YEAR TO COORDINATE ITS INFORMATIONHIGHWAY PUSH AND IS INVOLVED IN ABOUT 20 ALLIANCES RELATING TO THE CONVERGENCE OF COMPUTERS AND TELECOMMUNICATIONS THE COMPANY SAYS MANY OF ITS DEALS SOME OF WHICH COULD INCLUDE ACQUISITIONS MAY BE ANNOUNCED LATER THIS YEAR ROBERT STEARNS THE EXECUTIVE SPEARHEADING COMPAQ'S INFORMATIONHIGHWAY EFFORTS SAYS HE IS CONVINCED THAT TELEVISION WILL PLAY A MAJOR ROLE IN THE NEW ELECTRONIC ORDER THOUGH HE BELIEVES THE PC WILL STILL DOMINATE THE WORKATHOME AND BUDGETING FUNCTIONS THAT NOW TOP MOST USERS' LISTS OF WHAT THEY DO WITH HOME PCS APPLE AND INTERNATIONAL BUSINESS MACHINES CORP ALSO INTEND TO PLUG INTO THE HIGHWAY AND BOTH ARE PRODUCING TEST VERSIONS OF THE SOCALLED SETTOP TELEVISION BOXES ACCORDING TO SOME SCENARIOS MOST OF THE DATAMANAGING AND TRAFFICCOP FUNCTIONS OF PCS WOULD BE HANDLED BY SOUPEDUP CABLE BOXES SITTING ATOP TV SETS THIS VISION IS NOT PCCENTRIC SAYS JAMES A CANNAVINO IBM'S SENIOR VICE PRESIDENT AND STRATEGY CZAR HE ENVISIONS A MELDING OF PCS AND TVS WITH THE FOCUS MORE ON ENTERTAINING PEOPLE THAN ON CARRYING OUT NUMBERCRUNCHING FOR ITS PART APPLE FOR YEARS HAS PROSELYTIZED ABOUT THE PC AS A SMART TV THE CUPERTINO CALIF COMPANY WAS AMONG THE FIRST TO ADOPT THE VIDEO AND SOUND CAPABILITIES OF MULTIMEDIA COMPUTING AND ITS MACHINES WERE AMONG THE FIRST USED AT HOME FOR GAMES AND EDUCATION RICK LEFAIVRE VICE PRESIDENT OF APPLE'S ADVANCED TECHNOLOGY GROUP SAYS APPLE'S FOCUS NOW IS TO BUILD ON ITS EXPERTISE IN ELECTRONIC MAIL AND BULLETIN BOARDS TO HELP PEOPLE FIND THE DATA THEY NEED WHILE MOST OF THE SMALLER PC COMPANIES ARE HIGHLY CRITICAL OF THE HIGHWAY THEY ARE KEEPING TABS ON IT MR WAITT FOR INSTANCE KEEPS A MATRIX LISTING ALL OF THE BUDDING INDUSTRY ALLIANCES IN CASE HIS COMPANY SOMEDAY WANTS TO FIND A PARTNER AND JOIN THE FRENZY GATEWAY BASED IN N SIOUX CITY SD IS RESEARCHING A COMBINATION PC AND TV SIMILAR TO PRODUCTS ANNOUNCED BY APPLE AND PACKARD BELL ANALYSTS LIKE MR SCHLOSSSTEIN SAY THE BROAD PUBLIC DISCUSSION OF THE INFORMATION HIGHWAY HAS CAUGHT COMPUTER EXECUTIVES IN A STATE OF BOTH CONFUSION AND DENIAL HE SAYS JOINING THE NEW TECHNOLOGY WORLD WILL REQUIRE MANY OF THEM TO CHANGE THE WAY THEY VIEW THEIR FLAGSHIP PRODUCT FROM A DATASTORING AND NUMBERCRUNCHING DEVICE TO SOMETHING WITH BROADER USES THE PC GUYS DON'T SUFFER FROM ANGST THEY SUFFER FROM HUBRIS HE SAYS THEY TALK TO OTHER PC GUYS AND SHARE A COMMON PC VISION I'M SITTING HERE SCRATCHING MY HEAD AND THINKING THAT THEY MAY FIND THAT THEIR OPTIONS ARE LIMITED IBM ALREADY IN SETTOP BOX TRIAL WITH BELL ATLANTIC SEES MERGER OF PC AND TV APPLE ALSO IN SETTOP TRIAL BUT WITH MACINTOSH VERSION COMPAQ NEGOTIATING 20 UNANNOUNCED STRATEGIC ALLIANCES AND EQUITY DEALS WITH TELECOMMUNICATIONS SOFTWARE COMPANIES PACKARD BELL ALREADY OFFERS PC TV DOMINATES MASSMARKET RETAIL CHANNEL INTERESTED IN TIEUP WITH ONLINE SERVICE LIKE PRODIGY FOCUSED ON CORE PC BUSINESS PARTICULARLY IN OUTOFTHEWAY MARKETS LIKE CHINA FOCUSING ON COMPUTER SERVERS AS TOOLS THAT WILL BE USED TO MOVE AROUND BIG CHUNKS OF DATA AND TV WILL PLAY A ROLE WITH PC FOCUSED ON TEXT AND TV HANDLING VIDEO 9402280094 940228 MARKETING & MEDIA TIME WARNER TO LAUNCH 2 MAGAZINES THAT ALLOW FOR DIRECT MUSIC PURCHASES BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MARKETING MOVE DESIGNED TO BROADEN ITS RECORD DISTRIBUTION TIME WARNER INC'S WARNER MUSIC ENTERPRISES IS LAUNCHING TWO MAGAZINES THAT ENABLE SUBSCRIBERS TO ORDER RECORDS DIRECTLY BY MAIL OR A TOLLFREE TELEPHONE NUMBER IN SEPTEMBER THE COMPANY PLANS TO LAUNCH A ROCKANDROLL MAGAZINE HUH FEATURING INTERVIEWS AND REVIEWS OF MORE THAN 100 ALBUMS AND MUSIC VIDEOS EACH ISSUE READERS WILL THEN BE ABLE TO ORDER THOSE PRODUCTS DIRECTLY THROUGH THE MAGAZINE ANOTHER PLANNED MONTHLY NEW COUNTRY MAGAZINE WILL BE SENT TO SUBSCRIBERS ACCOMPANIED BY A COMPACT DISK OR CASSETTE THE MAGAZINE WILL ALSO FEATURE MORE THAN 100 REVIEWS OF CURRENT COUNTRY MUSIC THAT CAN BE ORDERED DIRECT JAZZ AND CHILDREN'S MUSIC MAGAZINES MAY FOLLOW THE PUBLISHING PROJECTS FROM WARNER MUSIC ENTERPRISES A UNIT OF RECORD COMPANY WARNER MUSIC GROUP ARE AN EFFORT TO BOOST SALES OF NEW MUSIC OUTSIDE TRADITIONAL RECORD STORES AND RECORD CLUBS VIRTUALLY ALL OF THE MAJOR RECORD LABELS INCLUDING TIME WARNER ARE EXPLORING MUSIC HOME SHOPPING CHANNELS AS WELL HUH WILL MAKE ITS DEBUT IN SEPTEMBER AND WILL BE PRODUCED BY LOS ANGELESBASED RAYGUN PUBLISHING INC ALTHOUGH SISTER COMPANY TIME INC MAGAZINES WON'T BE INVOLVED IN THE EDITORIAL PRODUCTION WARNER MUSIC WILL USE TIME'S SUBSCRIPTION FULFILLMENT CENTER IN FLORIDA AND DRAW ON MAILING LISTS OF SUCH TIME PUBLICATIONS AS ENTERTAINMENT WEEKLY CHRIS LINEN PRESIDENT OF WARNER MUSIC ENTERPRISES SAID THAT HUH WILL BE SENT FREE TO CURRENT SUBSCRIBERS OF ROCK MONTHLY VIDEO A YEAROLD VENTURE THAT EACH MONTH PRODUCES A VIDEOCASSETTE FEATURING 10 NEW MUSIC VIDEO CLIPS THE VIDEOCASSETTES ARE AVAILABLE IN FIVE GENRES INCLUDING POP HEAVY METAL ALTERNATIVE ROCK RAP AND COUNTRY SUBSCRIBERS CAN THEN BUY ANY ALBUM HIGHLIGHTED ON THE VIDEOCASSETTE VIA AN 800 NUMBER OR THROUGH THE MAIL ALTHOUGH THE SALE OF MUSIC VIDEOS IS RELATIVELY NEW THE CATEGORY HAS SHOWN SURPRISING STRENGTH ACCORDING TO THE RECORDING INDUSTRY ASSOCIATION OF AMERICA A WASHINGTON TRADE GROUP MUSIC VIDEOS GENERATED 2133 MILLION IN 1993 A GAIN OF 355 FROM A YEAR EARLIER UNIT SALES JUMPED 447 TO 11 MILLION MR LINEN SAID THAT HUH REVIEWERS WILL BE ALLOWED TO PAN ALBUMS IF THEY DON'T LIKE THEM AND THAT WARNER MUSIC GROUP WON'T HAVE ANY INVOLVEMENT IN DECIDING WHICH ALBUMS ARE REVIEWED READERS WHO ORDER THE ALBUMS PAY LIST PRICE PLUS SHIPPING AND HANDLING ALL SIX MAJOR RECORD COMPANIES ARE SUPPLYING PRODUCT AS AN EXTRA INDUCEMENT READERS OF HUH WHO GO TO A MUSIC STORE AND BUY AN ALBUM OR VIDEO SHOWN THAT MONTH IN A ROCK VIDEO MONTHLY VIDEOCASSETTE WILL RECEIVE DISCOUNT COUPONS WORTH AS MUCH AS 20 AFTER SENDING IN PROOF OF PURCHASE THE COUPONS WILL BE REDEEMABLE AGAINST LATER PURCHASES FROM HUH MOST DIRECT MAIL PEOPLE SAY TO BUY ONLY FROM THEM SAID RAJU PUTHUKARAI EXECUTIVE VICE PRESIDENT AT WARNER MUSIC ENTERPRISES INSTEAD WE'RE ENCOURAGING PEOPLE TO GO TO THE MUSIC STORES BECAUSE WE WANT TO BE PART OF BUILDING AND DEVELOPING NEW ACTS 9402280093 940228 LEISURE & ARTS MUSIC DISKMAKING WITH DOHNANYI BY BARBARA JEPSON CLEVELAND STANDBY THIS IS IVES THE FIRST MOVEMENT TAKE 63 A HUSH FALLS INSIDE SEVERANCE HALL THE FANCIFUL ARTDECO HOME OF THE CLEVELAND ORCHESTRA AS THE DISEMBODIED VOICE OF DECCA/LONDON PRODUCER PAUL MYERS COMES OVER THE SOUND SYSTEM THIS WORLDCLASS ORCHESTRA WHICH OUTSHINES ALL COMPETITORS THESE DAYS EXCEPT THE VIENNA PHILHARMONIC ON A GOOD NIGHT IS IN THE PROCESS OF MAKING ITS 46TH RECORDING WITH CHRISTOPH VON DOHNANYI ITS ACCLAIMED MUSIC DIRECTOR MR DOHNANYI AND HIS PLAYERS ARE STATIONED ON A 140000 EXTENSION STAGE BUILT BY DECCA TO ENHANCE THE AUDITORIUM'S NORMALLY DRYISH ACOUSTICS THEY HAVE ALREADY RECORDED THE SECOND AND THIRD MOVEMENTS OF CHARLES IVES'S VIVIDLY PICTORIAL ORCHESTRAL SET NO 2 190915 WITH RELATIVE EASE THE FIRST MOVEMENT DOES NOT FARE SO WELL AFTER TWO FALSE STARTS TAKE 64 SEEMINGLY TAKES WING THE ORCHESTRA PLAYS THIS GENTLY HYPNOTIC ELEGY WITH CHARACTERISTIC PRECISION AND SHIMMERING STRING SOUND WE WERE TOO LOUD IN FRONT OF LETTER E DECLARES MR DOHNANYI AN ARISTOCRATIC GERMAN WHOSE PASSION FOR PERFECTION HAS RAISED THE CLEVELAND'S HIGH LEVEL OF PLAYING ANOTHER NOTCH THE FLUTE IS STILL FORCING IT ONE MORE TAKE OF THIS JA THIS IS TAKE 65 INTONES MR MYERS FROM THE MAKESHIFT CONTROL ROOM WHICH HAS BEEN SET UP IN THE ORCHESTRA'S BOARDROOM ONE FALSE START AND TWO MORE ABORTIVE TAKES LATER MR DOHNANYI TAPS HIS BATON AGAIN MR MYERS GROANS FROM LETTER D TAKE 68 ALMOST SAYS MR DOHNANYI AFTER THE MOVEMENT'S COMPLETION EVERYONE IN THE CONTROL ROOM GROANS TAKE 69 THIS TIME THE MOVEMENT IS PERFORMED TO THE 63YEAROLD MAESTRO'S SATISFACTION ALL THE WHILE THE CLOCK IS TICKING IN 1940 IT REPORTEDLY COST 30 A MINUTE TO RECORD THE CLEVELAND ORCHESTRA TODAY IT COSTS BETWEEN 1000 AND 1500 A MINUTE TOTAL EXPENSES FOR A SINGLE DISK RANGE FROM 90000 TO 120000 ECONOMICS ALSO HELP DETERMINE THE ORDER IN WHICH THE PIECES ARE RECORDED THE THIRD MOVEMENT OF THE IVES A HYMNLACED TONE POEM MEMORIALIZING THE SINKING OF THE LUSITANIA IS TACKLED FIRST NOT ONLY IS IT THE MOST DIFFICULT REQUIRING PRECISE COORDINATION BETWEEN THE ORCHESTRA AND AN EERIE OFFSTAGE CHORUS AND BAND BUT ONCE IT IS COMPLETED THE CHORUS MEMBERS CAN BE DISMISSED MEN AND MOUNTAINS 1924 A SHORT WORK FOR STRINGS BY ANOTHER AMERICAN INDIVIDUALIST CARL RUGGLES IS SCHEDULED LAST FOR GOOD REASON ACCORDING TO MR MYERS UNION RULES DICTATE THAT THE ENTIRE ORCHESTRA BE PAID FOR THE FIRST TWO HOURS OF EACH SESSION IN THE THIRD HOUR ONLY THOSE PLAYERS ACTUALLY AT THE SESSION ARE PAID AND ONLY THE STRINGS WILL HAVE TO BE PAID SHOULD THE SESSION RUN INTO OVERTIME MR MYERS WHO MADE SOME 40 RECORDINGS WITH GEORGE SZELL MR DOHNANYI'S MOST REVERED PREDECESSOR IS SEATED AT A LONG TABLE WITH A SCORE IN HIS HANDS ON HIS LEFT TECHNICAL ENGINEER ANDY GROVES LOGS AND TIMES EACH TAKE ON AN AUTO LOCATOR AT HIS RIGHT MIXING ENGINEER JOHN PELLOWE OPERATES A HIGHTECH RECORDING CONSOLE WITH TWINKLING COLORED LIGHTS THAT SEEMS INCONGRUOUS AMONG THE BOARDROOM'S PATRICIAN FURNISHINGS THROUGHOUT THE SESSION THE CONTRAST BETWEEN THE RELATIVE CALM IN THE HALL AND THE ONGOING DRAMA IN THE CONTROL ROOM IS REMARKABLE MORE HORNS CUES MR MYERS MR PELLOWE WHO PLAYS THE CONSOLE'S SLIDERS LIKE A KEYBOARD ARTIST IS ABLE TO DELICATELY BOOST OR DIMINISH THE PICKUP OF ANY OF THE 16 MICROPHONES ONSTAGE NOISE EXCLAIMS MR PELLOWE AT THE SLIGHTEST CREAK IN THE STAGE OR CRINKLE OF A SCORE BEING TURNED IN THE HALL THE OFFENDING SEGMENT WILL HAVE TO BE REDONE ENGINEERS HAVE EARS LIKE CATS SAYS MR MYERS WHOSE SCOREREADING ABILITY RIVALS THAT OF MOST CONDUCTORS DURING THE SESSIONS HE MARKS THE MUSIC TO INDICATE WHICH TAKE WORKS BEST IN A PARTICULAR SECTION AN EDITED MASTER RECORDING BASED ON HIS INSTRUCTIONS WILL THEN BE SENT TO MR DOHNANYI FOR APPROVAL THE MUSIC RECORDED TODAY WILL ULTIMATELY BE RELEASED ON THE LONDON LABEL ALONG WITH ANOTHER RUGGLES PIECE SUNTREADER 1920S AN EXPRESSIONISTIC WORK OF NERVEJARRING INTENSITY THAT OCCUPIED THE ORCHESTRA IN THE MORNING SESSION IN THE MEANTIME THERE ARE MANY EXAMPLES OF THE CLEVELAND'S STELLAR MUSICMAKING AVAILABLE PARTICULARLY ON LONDON WITH WHOM THE ORCHESTRA NOW HAS AN EXCLUSIVE RECORDING CONTRACT TWO LUMINOUS DISKS OF SCHUMANN'S SYMPHONIES DISPLAY THE IMPECCABLY BALANCED SOUND THAT HAS BECOME A TRADEMARK OF THIS ORCHESTRA UNDER MR DOHNANYI BARTOK'S CONCERTO FOR ORCHESTRA RECEIVES A TAUT HIGHINTENSITY READING AND TO CELEBRATE ITS 75TH ANNIVERSARY SEASON THE CLEVELAND ORCHESTRA HAS RELEASED A 10DISK SET SHOWCASING ITS MUSIC DIRECTORS PAST AND PRESENT THE SET IS AVAILABLE ONLY FROM THE ORCHESTRA CALL 8006861141 AT 180 PLUS SHIPPING IT IS HARDLY A MUST BUT IT DOES INCLUDE EXEMPLARY RECENT PERFORMANCES AS WELL AS SOME DELIGHTFUL EARLY MONAURAL RECORDINGS PREVIOUSLY UNAVAILABLE ON CD IN MAKING HIS STUDIO RECORDINGS MR DOHNANYI MUST BE CONVINCED THAT HIS INTERPRETATIONS CAN STAND THE TEST OF TIME FOR ME HE OBSERVED DURING AN INTERVIEW AT HIS SHAKER HEIGHTS HOME A LIVE RECORDING IS A KIND OF SNAPSHOT OF WHAT YOU FEEL AT THE MOMENT A STUDIO RECORDING IS MORE LIKE A PORTRAIT HIS VISION OF IVES PREDATES HIS DECADELONG TENURE IN CLEVELAND IF IVES HAD LIVED IN VIENNA DURING THE HEYDAY OF SCHOENBERG BERG AND WEBERN SAID THE CONDUCTOR HE WOULD HAVE BEEN RECOGNIZED AS ONE OF THE GREAT GENIUSES OF THAT TIME RUGGLES IS A LESS INTELLECTUAL PERSON A PERSON WHO GOT STUCK MORE IN THE MODE OF BEING SERIAL' WHAT INTERESTS ME IN RUGGLES IS THE STRUGGLING DURING THE NEXT DAY'S MORNING SESSION IT IS MR DOHNANYI WHO STRUGGLES TO ATTAIN THE ARTISTIC EXCELLENCE HE SEEKS IN SMETANA'S MOLDAU AFTER TAKE 18 IS COMPLETED THE MAESTRO IS BEHIND SCHEDULE BUT CONTENT TODAY WAS NOT SO EFFICIENT HE SAYS BUT I THINK WE MADE SOME MUSIC FINALLY MS JEPSON IS A MUSIC WRITER IN NEW YORK 9402280092 940228 INTERNATIONAL GRANADA GROUP BID FOR LWT IS ACCEPTED BY HOLDERS OF 4033 SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH LEISURE COMPANY GRANADA GROUP PLC SAID IT HAS RECEIVED ACCEPTANCES FOR ITS BID FOR LWT HOLDINGS PLC AMOUNTING TO 4033 OF THE COMPANY GRANADA ALREADY OWNED 1751 SO IT NOW HOLDS 5784 OF THE TELEVISION COMPANY IN A STATEMENT GRANADA CHAIRMAN ALEX BERNSTEIN SAID WE ARE OBVIOUSLY DELIGHTED THAT OUR OFFER HAS BEEN ACCEPTED WE NOW LOOK FORWARD TO THE NEW ENLARGED TELEVISION DIVISION BECOMING A MAJOR FORCE IN THE INDUSTRY NOT ONLY IN THE UK BUT ALSO OVERSEAS ANALYSTS HAD WIDELY EXPECTED GRANADA TO EMERGE THE WINNER IN THE HOSTILETAKEOVER BATTLE THEY FELT THAT ONCE MERCURY ASSET MANAGEMENT GROUP PLC THURSDAY ACCEPTED GRANADA'S OFFER LWT'S FATE WAS SEALED FUND MANAGER MERCURY HELD A 142 STAKE IN LWT AND ALSO HAD 16 HOLDING IN GRANADA LWT HAS YET TO MAKE AN OFFICIAL STATEMENT ON THE RESULT OF GRANADA'S OFFER 9402280091 940228 CREDIT MARKETS BONDMARKET JITTERS MAY WORSEN THIS WEEK BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TALK IN THE BOND MARKET IS THAT LAST WEEK'S BIG BOND SELLOFF WENT TOO FAR AND THAT BONDS NOW ARE CHEAP TOO BAD IT'S JUST TALK VERY FEW PEOPLE ARE BACKING UP THOSE WORDS WITH ACTIONS AND BUYING SAYS JOHN LONSKI CHIEF ECONOMIST OF MOODY'S INVESTORS SERVICE INC IT'S LIKE PUTTING YOUR ECONOMIC ANALYSIS IN ONE PLACE AND YOUR POCKETBOOK IN ANOTHER ON FRIDAY BOND PRICES DID RECOVER A BIT WITH THE LONGTERM TREASURY YIELD ENDING AT 671 BUT THINGS ARE LIKELY TO WORSEN THIS WEEK ONE REASON IS THAT THE BOND MARKET IS DREADING TOMORROW'S RELEASE OF REVISED FIGURES ON THE FOURTHQUARTER GROSS DOMESTIC PRODUCT EARLIER ESTIMATES PUT THE JUMP AT 59 MANY ECONOMISTS LOOK FOR A REVISION CLOSER TO 7 AND THAT KIND OF NUMBER IS LIKELY TO BE GREETED WITH BOOS BY THE BOND INVESTORS OF AMERICA SAYS MOODY'S MR LONSKI BOND YIELDS WHICH MOVE IN THE OPPOSITE DIRECTION OF PRICES ARE ALREADY HOVERING NEAR 10MONTH HIGHS ONE MAJOR CULPRIT HERE RISING INFLATION EXPECTATIONS CLIMBING PRICES MEAN THAT THE FIXEDCOUPON PAYMENT FROM A 30YEAR BOND BUYS LESS AND LESS EACH WEEK THIS TREND INEXORABLY PUSHES THE VALUE OF THE BOND LOWER THE FEDERAL RESERVE MAY BE ABLE TO DO SOMETHING ABOUT INFLATION BUT IT HAS HAD LITTLE EFFECT ON INFLATIONARY EXPECTATIONS SO FAR THIS YEAR THE FED RAISED SHORTTERM INTEREST RATES THREE WEEKS AGO FRIDAY AIMING TO KEEP THE US ECONOMY FROM OVERHEATING AND FEEDING INFLATION BUT THAT REVERSAL OF THE FED'S LONGTIME PATTERN OF RATE CUTTING SENT BOND INVESTORS FLEEING SINCE THE FED'S RATE BOOST THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND HAS DROPPED NEARLY 4 1/2 POINTS OR NEARLY 45 FOR A BOND WITH 1000 FACE VALUE OUCH SINCE THE YIELD OF THE 30YEAR BOND BOTTOMED AT 579 IN MIDOCTOBER INFLATIONARY EXPECTATIONS HAVE RISEN SHARPLY THE NEARBY CHART SHOWS THAT EVEN THOUGH PRICE GAINS MEASURED BY THE CONSUMER PRICE INDEX HAVE REMAINED LOW INVESTORS BELIEVE THAT PRICE INFLATION WILL ACCELERATE IN THE FUTURE SEE RELATED ILLUSTRATION ROBERT ARIEL FINANCE PROFESSOR AT CITY UNIVERSITY OF NEW YORK WHO CONSTRUCTED THE CHART SAYS THE RECENT JUMP IN INFLATIONARY EXPECTATIONS WAS A SHOCK I FOUND IT SURPRISING THAT THEY MOVED THAT MUCH THIS FAST HE SAYS THE KIND OF SHIFT THAT USED TO HAPPEN IN COUPLE OF WEEKS IS NOW HAPPENING IN A DAY AN INVESTOR WHO BOUGHT A 30YEAR TREASURY BOND THE DAY THE FED RAISED RATES AND SOLD IT ON FRIDAY WOULD HAVE LOST 456 IN PRINCIPAL THAT'S A BIGGER LOSS IN THREE WEEKS THAN MOST PEOPLE MAKE IN A MONEYMARKET FUND OVER A WHOLE YEAR IN ITS FIRST SKIRMISH IN THE PSYCHOLOGICAL BATTLE AGAINST INFLATIONARY EXPECTATIONS THE FED HAS BEEN ROUTED INVESTORS WHO FORMERLY LOOKED FOR THE GOOD NEWS FOR BONDS IN ANY ECONOMIC REPORT NOW ARE FOCUSING ALMOST EXCLUSIVELY ON THE BAD NEWS ACCORDING TO BOND LOGIC GOOD NEWS FOR THE ECONOMY IS BAD FOR BONDS BECAUSE A GROWING ECONOMY MEANS GREATER DANGER OF RISING INFLATION SO EVEN THOUGH AN UPWARD REVISION TO THE FOURTHQUARTER GROSS DOMESTIC PRODUCT TOMORROW WOULDN'T BE A SURPRISE BOND INVESTORS HAVE BECOME SO ANXIOUS ABOUT INFLATION THAT THEY MIGHT TAKE IT ON THE CHIN IF FOURTHQUARTER GDP IS FAR ABOVE ITS LONGTERM TREND SAYS MR LONSKI INVESTORS ARE LIKELY TO READ IT AS EVIDENCE OF A HIGHER UNDERLYING RATE OF ECONOMIC GROWTH FOR 1994 THE GROSS DOMESTIC PRODUCT REPORT IS FOLLOWED THIS WEEK BY THE EMPLOYMENT REPORT FOR FEBRUARY THE FIRST OFFICIAL LOOK AT THE STATE OF THE NATION'S ECONOMY FOR THE MONTH IT IS TO BE RELEASED FRIDAY SHORTTERM TREASURY SECURITIES NOW ARE PRICED AS IF THE FEDERAL FUNDS RATE WHICH THE FED BOOSTED IN EARLY FEBRUARY WERE 425 TO 45 INSTEAD OF ITS CURRENT 325 RATE SAYS ROBERT ANDRES HEAD OF FIXEDINCOME INVESTING AT MARTINDALE ANDRES & CO OF WEST CONSHOHOCKEN PA THE FED FUNDS RATE IS THE RATE AT WHICH BANKS LEND EACH OTHER MONEY OVERNIGHT WE'RE WAY AHEAD OF OURSELVES HERE HE SAYS MR ANDRES SAYS HE DOESN'T ENVISION INFLATIONARY PRESSURES BUILDING MUCH AT ALL THIS YEAR STILL UNTIL THERE IS SOME STABILIZATION IN THE BOND MARKETS NOBODY WANTS TO RUSH OUT AND BE THE INTREPID ONE AND BUY BONDS SAYS MR LONSKI OF MOODY'S HE THINKS THE 30YEAR BOND YIELD WILL HIT 69 BY YEAR'S END HOW MUCH LONGER CAN YOU CONTINUE TO SELL OFF BONDS WITHOUT SOME HARD EVIDENCE OF EITHER SIGNIFICANTLY FASTER ECONOMIC GROWTH OR A HIGHER RATE OF INFLATION HE SAYS LAST YEAR THE CONSUMER PRICE INDEX INCREASED 27 FROM THE PREVIOUS YEAR MR LONSKI IS PREDICTING AN INCREASE OF 34 BY THE END OF THIS YEAR THAT WOULDN'T BE ENOUGH TO CAUSE A PANIC THOUGH BOND INVESTORS SEEM PERILOUSLY CLOSE TO ONE ALREADY THE PROBLEM IS THAT INVESTORS ARE READING THE FED'S MOVE TO RAISE RATES AS A REACTION TO EXISTING INFLATIONARY PRESSURES RATHER THAN A PREEMPTIVE STRIKE SAYS PROF ARIEL IF INVESTORS WERE SURE THAT THE FED WAS AHEAD OF THE BALL LONGTERM INTEREST RATES WOULD HAVE DROPPED HE SAYS THE MOST OBVIOUS RESULT OF THIS TURNABOUT IN SENTIMENT HAS BEEN THE DECISION BY MANY INVESTORS TO MOVE MONEY FROM FOREIGN AND LONGTERM BONDS INTO THE CONSERVATIVE REALM OF SHORTERTERM DOMESTIC SECURITIES THURSDAY AND FRIDAY FOR EXAMPLE THERE WAS A MAJOR SELLOFF IN THE GOVERNMENT BONDS OF DEVELOPING NATIONS SUCH AS MEXICO AND ARGENTINA WHERE PRICES DROPPED AS MUCH AS FIVE POINTS IN SOME CASES ACCORDING TO NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT FIDELITY INVESTMENTS IN BOSTON THE NATION'S LARGEST MUTUALFUND COMPANY THERE HAS BEEN A BIG SHIFT INTO SHORTERTERM SECURITIES OVER THE PAST MONTH SO FAR IN FEBRUARY MORE THAN 90 OF BONDFUND SALES HAVE BEEN IN SHORTTERM FUNDS WHILE IN JANUARY TWOTHIRDS OF BONDFUND SALES WERE OF SHORTTERM FUNDS SAYS MR LITVACK THERE ARE NO NET REDEMPTIONS IN ANY BONDFUND CATEGORIES ONLY A SLOWDOWN IN NET SALES HE SAYS IN FEBRUARY VANGUARD GROUP OF VALLEY FORGE PA THE SECONDLARGEST MUTUAL FUND COMPANY HAS SEEN SLIGHT NET OUTFLOWS OF INVESTOR DOLLARS IN BOTH TAXABLE AND TAXFREE BOND FUNDS BUT SHORTTERM MONEYMARKET FUNDS HAD SUBSTANTIAL INFLOWS A SPOKESMAN SAID OVERALL FLOW INTO TAXABLEBOND MUTUAL FUNDS IS AT HALF THE LEVEL OF MIDJANUARY ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF RESEARCH FIRM FOR THE WEEK THROUGH WEDNESDAY ABOUT 900 MILLION FLOWED INTO THESE FUNDS DOWN FROM A WEEKLY AVERAGE OF 18 BILLION AT THE BEGINNING OF JANUARY IF WITHDRAWALS BY INVESTORS WORRIED ABOUT RISING RATES WERE TO ACCELERATE SHARPLY HOWEVER THE BOND MARKET COULD BE PUSHED DOWN EVEN FURTHER AS PORTFOLIO MANAGERS SELL HOLDINGS TO RAISE CASH ALSO PUSHING YIELDS HIGHER HAS BEEN SELLING BY SOCALLED HEDGE FUNDS SAYS JAMES CALMAS A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES WE'RE HEARING THAT A LOT OF OVERLEVERAGED PLAYERS ARE EXITING THE BOND MARKET HE SAYS SOME ANALYSTS BELIEVE THAT HEDGE FUNDS WITH LOSING POSITIONS IN SOME EUROPEAN BOND MARKETS HAVE BEEN QUICK TO RAISE CASH BY UNLOADING THEIR US TREASURY HOLDINGS WHICH ARE EASIER TO SELL IN A DOWN MARKET THAN MANY EUROPEAN BONDS THE INDECISION ON INTEREST RATES IS LIKELY TO SLOW THE FLOOD OF NEW INVESTMENTGRADE AND JUNKBOND OFFERINGS SHARPLY IN COMING WEEKS THERE'S VERY LITTLE TRADING TAKING PLACE IN THE JUNKBOND MARKET SAYS KINGMAN PENNIMAN DIRECTOR OF FIXEDINCOME RESEARCH AT DUFF & PHELPS CORP IT'S CERTAINLY CAUSING PEOPLE TO HAVE SECOND THOUGHTS ABOUT THE PRICING CALENDAR THE RESULT IS THAT THE JUNKBOND MARKET IS BECOMING A PLACE WHERE BUYERS CAN BE CHOOSIER WE'RE PROBABLY LOCKED INTO AN UPWARD PATH FOR INTEREST RATES THAT WILL CONTINUE UNTIL FED TIGHTENING SIGNIFICANTLY DIMINISHES THE PACE OF ECONOMIC ACTIVITY SAYS MR LONSKI OF MOODY'S FOR BOND YIELDS TO HEAD BACK DOWN TO 625 AGAIN HE SAYS WHAT YOU NEED IS A RETURN OF PROTRACTED ECONOMIC WEAKNESSWHICH DOESN'T SEEM LIKELY TREASURYS MUSTERED A LITTLE STRENGTH EARLY FRIDAY BUT QUICKLY LOST THEIR VIGOR SPENDING MOST OF THE DAY LITTLE CHANGED TO SLIGHTLY HIGHER THE 10YEAR NOTE FOR EXAMPLE ROSE 1/8 POINT TO 97 20/32 TO YIELD 618 COMPARED WITH 62 THURSDAY TREASURYS OPENED HIGHER AS TRADERS AND INVESTORS TRIED TO STAKE OUT A NEW BOTTOM FOR THE MARKET BUT GAINS IN THIS KIND OF TRADING SAY HARDLY ANYTHING ABOUT THE MARKET'S LONGTERM CHANCES TRADERS POINT OUT CALL IT BACKING AND FILLING SAYS WILLIAM BRACHFELD HEAD OF GOVERNMENT SECURITIES TRADING AT DAIWA SECURITIES AMERICA INC A LOT OF IT IS TECHNICALLY ORIENTED AT THE HEART OF THIS TECHNICAL ORIENTATION IS A NEED BY TREASURY MARKET PLAYERS TO FEEL READY FOR ANY MORE CHANGES IN MONETARY POLICY BY THE FEDERAL RESERVE BUT EVEN IF FRIDAY'S NEARLY UNCHANGED MARKET WAS A SIGN THAT BOND BUYERS AND TRADERS HAVE ESTABLISHED A COMFORTABLE RATE BASE FROM WHICH TO OPERATE THERE ISN'T MUCH CHANCE THEY'LL BE TAKING ON BIG NEW POSITIONS WHILE THEY'RE STILL ANTICIPATING THAT THE FED WILL ACT MARKET WATCHERS SAY DURING SUCH A WAIT IT TAKES A BRAVE PERSON TO STEP UP AND BATTLE SAYS DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS I THINK THERE ARE FEW PEOPLE WHO ARE WILLING TO DO THAT WITH THE KIND OF REPORTS COMING UP THAT WE'VE GOT SARA CALIAN CONTRIBUTED TO THIS ARTICLE 9402280090 940228 WHO'S NEWS CHOCK FULL O'NUTS CORP CHOCK FULL O'NUTS CORP NEW YORK NORMAN E ALEXANDER WAS ELECTED CHAIRMAN OF THIS COFFEE AND FOODSERVICE COMPANY MR ALEXANDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SEQUA CORP WON'T ASSUME ANY EXECUTIVE RESPONSIBILITIES AT THE COMPANY MR ALEXANDER 79 YEARS OLD SUCCEEDS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOSEPH BRESLIN WHO RESIGNED IN AUGUST TO PURSUE OTHER INTERESTS THE DUTIES OF CHAIRMAN AND CHIEF EXECUTIVE NOW HAVE BEEN DIVIDED MARVIN I HAAS 52 CONTINUES AS CHIEF EXECUTIVE OFFICER 9402280089 940228 PUBLISHING DEAR AUTHOR YOUR BOOK HAS CHANGED MY LIFE BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH THEY'VE NEVER MET CHRIS HARRIS FELT HE COULD BARE HIS NINTHGRADE SOUL TO THE AUTHOR HOWARD FAST JUST ONCE I WOULD LIKE FOR MY DAD TO SAY THAT WAS AN EXCELLENT GRAB AT SECOND BASE' CHRIS CONFIDED IN A LETTER TO MR FAST MOST OF THE TIME IT'S COME ON YOU KNOW YOU CAN DO BETTER THAN THAT' DEEP DOWN I KNOW THAT HE LOVES ME A LOT I JUST CAN'T HELP TO WONDER WHY HE DOESN'T SHOW HIS EMOTIONS CHRIS'S LETTER WAS AMONG 9000 WRITTEN BY JUNIOR AND SENIORHIGH STUDENTS AS PART OF A CONTEST SPONSORED BY READ MAGAZINE AND THE LIBRARY OF CONGRESS THE TOPIC HOW BOOKS HAVE CHANGED THEIR LIVES THE ESSAYS IN THE FORM OF LETTERS TO AUTHORS DEAL WITH EVERYTHING FROM MOLESTATION TO THE DEATH OF A PET THEY OFFER A HOPEFUL SIGN IN OUR VIDEOCLUTTERED CULTURE SAYS CATHY GOURLEY ASSOCIATE EDITOR OF READ MAGAZINE WHO SAYS KIDS AREN'T READING SHE ASKS CHRIS READ MR FAST'S APRIL MORNING A NOVEL ABOUT A YOUNG MAN TRYING TO WIN HIS FATHER'S RESPECT DURING THE REVOLUTIONARY WAR AS PART OF A HISTORY ASSIGNMENT HE EXPECTED A BORING REHASH OF A COLONIAL BATTLE IT FASCINATED ME HOW IT WAS A LOT LIKE MY LIFE HE SAYS JONI BOYNTON A SEVENTH GRADER FROM LEWISTON MINN HAD JUST FINISHED READING WILSON RAWLS'S WHERE THE RED FERN GROWS ABOUT A BOY AND THE DEATH OF HIS TWO DOGS WHEN HER OWN DOG BEAR WAS SHOT BY HUNTERS AS HE LAY HIS HEAD IN MY LAP WITH SUCH PAIN AND AGONY IT BROKE MY HEART SHE WROTE TO THE AUTHOR THIS EPISODE SEEMED UNREAL WHY OR HOW COULD ANYONE BE SO CRUEL IT HELPS KNOWING SOMEONE ELSE HAS GONE THROUGH THE SAME KIND OF PAIN NO ONE KNOWS FOR SURE WHETHER KIDS ARE READING MORE OR NOT THERE ARE SOME POSITIVE SIGNS SALES OF JUVENILE TRADE BOOKS ALMOST DOUBLED TO AN ESTIMATED 209 BILLION IN 1993 FROM 105 BILLION IN 1987 ACCORDING TO THE BOOK INDUSTRY STUDY GROUP AND BOOKORIENTED CHILDREN'S SHOWS LIKE READING RAINBOW ARE AMONG THE MOST POPULAR PUBLIC TELEVISION SHOWS STILL KIDS CONFESS THEY DON'T READ THAT MUCH IF THEY DON'T HAVE JOBS AFTER SCHOOL THEY HAVE PLAY REHEARSALS AND WRESTLING PRACTICE AND WHILE READING IS CONSIDERED WORK MOVIES AND TV ARE ENTERTAINMENT JUST LOOK AT THE 1992 READING REPORT CARD FROM THE US DEPARTMENT OF EDUCATION FEWER THAN 25 OF STUDENTS IN GRADES 8 AND 12 READ EVERY DAY AND THE SAME PERCENTAGE NEVER OR HARDLY EVER READ FOR FUN MEANWHILE 65 OF THE 8TH GRADERS AND 47 OF 12TH GRADERS WATCH THREE OR MORE HOURS OF TV A DAY TEENAGERS SAY THEIR PARENTS AREN'T MUCH BETTER THEY SPEND ALL DAY IN FRONT OF COMPUTERS AND UNWIND IN FRONT OF THE TV THEIR READING SEEMS LIMITED TO NEWSPAPERS OR MAGAZINES AVI WHO GOES BY HIS FIRST NAME ONLY IS A POPULAR CHILDREN'S BOOK AUTHOR WHO SAYS THERE'S NO QUESTION KIDS READ LESS HE ADDS HOWEVER THAT BOOKS HAVE AN UNDENIABLY PROFOUND IMPACT ON KIDS' LIVES WHENEVER HE VISITS SCHOOLS SOME 30 TO 40 A YEAR HE ASKS KIDS TO NAME A TV SHOW THAT IS LIKE THEIR OWN LIFE THEY CAN NEVER COME UP WITH ONE HE SAYS DANIEL BOORSTIN LIBRARIAN OF CONGRESS EMERITUS SAYS BOOKS HOLD POWER OVER ALL GENERATIONS BECAUSE THE EXPERIENCE OF READING IS SO PERSONAL YOU CAN POSSESS A BOOK HOLD IT NO ONE KNOWS WHAT YOU'RE READING AND FEELING YOU MAKE YOUR OWN WORLD HE SAYS MOVIES AND TELEVISION ARE ALMOST TOO REALISTIC HE ADDS INDEED YOUNG ADULTS ARE UNEXPECTEDLY SEEING THEMSELVES REFLECTED IN THE PAGES OF BOOKS YOUR BOOK CAPTURED ME WROTE JENNIFER MARVIN TO AUTHOR HANNAH GREEN ABOUT I NEVER PROMISED YOU A ROSE GARDEN MS GREEN'S ACCOUNT OF A YOUNG GIRL SUFFERING FROM MENTAL ILLNESS LET ME EXPLAIN I AM 16 AND I HAVE BEEN DIAGNOSED WITH MANIC DEPRESSION AND AM ON SEVERAL MEDICATIONS LUCKILY MY CASE IS MILD BUT THAT DOESN'T MEAN IT ISN'T HARD I FIGHT LIVING IN A WORLD OF MY OWN ALSO SHE WROTE CLOSING WITH MY DEEPEST GRATITUDE AND LOVE THE BOOKS HAVE CHANGED THE STUDENTS AND THE CONTEST HAS CHANGED THE TEACHERS LINDA VEGH AN ENGLISH TEACHER IN CORPUS CHRISTI TEXAS SAYS SHE USED TO MAKE ALL BOOK SELECTIONS HERSELF AND ASSIGN HOMEWORK ON EVERYTHING STUDENTS READ AS A RESULT STUDENTS OFTEN READ SOLELY IN SEARCH OF ANSWERS ABOUT CHARACTER DEVELOPMENT AND THEME NOW SHE LETS STUDENTS PICK THEIR OWN BOOKS MS VEGH SAYS SHE WOULD NEVER HAVE ASSIGNED THE COURAGE TO HEAL FOR EXAMPLE A CHRONICLE OF SEXUAL ABUSE WHICH EXPLAINS HOW VICTIMS RESOLVED THEIR FEAR AND GUILT BUT LULA JONES A 12TH GRADER AT THE PUBLIC HIGH SCHOOL WHERE MS VEGH WORKS PICKED IT UP SHE WROTE THAT SHE HAD BEEN MOLESTED FOR SEVERAL YEARS WAS AFRAID OF BEING HOME ALONE AND OF THE DARK I FELT AS IF THERE WERE SOMETHING WRONG WITH ME BECAUSE I CAN'T STAND FOR PEOPLE TO TOUCH ME SHE WROTE TO AUTHORS ELLEN BASS AND LAURA DAVIS JUST READING THE STORIES OF ALL THOSE WOMEN EASES THE PAIN AND MAYBE ONE OF THESE DAYS WITH THE HELP OF YOUR BOOK THAT LITTLE GIRL INSIDE OF ME WILL BE AT PEACE WITH HERSELF WROTE MS JONES AS MUCH AS BOOKS CHANGE FOR EVERY READER AND GENERATION THEY ALSO OFFER A REASSURING CONSTANT THE HERO WHO UNLIKE MANY OF TODAY'S ROLE MODELS WILL NEVER CHANGE OR DISAPPOINT ASLUM KHAN A SENIOR IN ROLLING MEADOWS ILL LOST HIS MOTHER TO CANCER FELT ALIENATED FROM HIS FATHER AND AS AN INDIAN AND MUSLIM FROM MOST OF SOCIETY AS WELL HE PICKED UP THE AUTOBIOGRAPHY OF MALCOLM X BECAUSE HE HEARD MALCOLM X'S NAME IN A COUPLE OF RAP SONGS BEFORE HE READ THE BOOK HE WAS LIKE EVERY OTHER HIGH SCHOOL KID I WAS AFRAID OF EVERYTHING I REALLY DOUBTED MYSELF HE SAYS ALL OF THOSE FEELINGS HE SAYS CHANGED AFTER READING THE BOOK IN HIS CONTESTWINNING LETTER TO ALEX HALEY HE WROTE I REALIZE NOW THAT I AM A TALENTED GOOD PERSON AND NOBODY CAN TELL ME OTHERWISE SUDDENLY EVERYTHING MY MOTHER HAD TOLD ME ABOUT HONESTY DOING WELL IN SCHOOL AND NOT FOLLOWING THE CROWD HAD NEW MEANING TO ME NOT EVERY LETTER WAS A THANK YOU NOTE SOME OFFERED ADVICE SUZANNE LANZAFAME OF PARK RIDGE ILL SUGGESTS THAT AUTHOR MICHAEL CRICHTON LIGHTEN UP THE SETTING CHARACTERS ACTION AND DINOSAURS IN JURASSIC PARK WERE PERFECT SHE WROTE BUT SHE COULD DO WITHOUT THE TECHNICAL STUFF DO YOU THINK WE'RE ALL SCIENTISTS AND STUDY DNA DAY AND NIGHT SHE WROTE WHAT I'M TRYING TO SAY IS MAKE YOUR BOOKS SO EVERYBODY COULD READ THEM AND SO YOU DON'T HAVE TO BE A SCIENTIST TO UNDERSTAND THEM OTHERWISE I WOULD SAY THIS IS AN EXCELLENT BOOK 9402280088 940228 SMALL STOCK FOCUS PROS ADVISE TREATING HOT STOCKS WARILY AMID MARKET RETREAT BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL GO DEFENSE WHILE SMALLCAPITALIZATION STOCKS HAVE OUTPERFORMED THEIR BIGGER BRETHREN SO FAR IN THE CURRENT STOCK MARKET CORRECTION MARKET ANALYSTS SAY IT'S TIME FOR SMALLSTOCK INVESTORS TO TAKE A BROAD DEFENSIVE POSTURE THAT MEANS TAKING PROFITS ON THE SECTOR'S HIGHFLIERS WHILE FOCUSING MORE ATTENTION AND INVESTMENT DOLLARS ON ISSUES THAT WILL DO WELL AMID A CONTINUED ECONOMIC RECOVERY THE RUSSELL 2000 INDEX A LEADING BAROMETER OF SMALLCAP PERFORMANCE IS DOWN 18 FROM ITS ALLTIME PEAK ON FEB 2 WHILE THE DOW JONES INDUSTRIAL AVERAGE HAS FALLEN 36 FROM ITS JAN 31 PEAK ANALYSTS WARN THAT WHILE THE OVERALL PERFORMANCE OF SMALL STOCKS HAS BEEN IMPRESSIVE IN THE RETREAT DANGER STILL LURKS IN THE SMALLCAP UNIVERSE ESPECIALLY AMONG THE HOT GROWTH STOCKS THE GREATEST RISK IS IN GROWTH STOCKS WHERE YOU HAVE HIGH EXPECTATIONS HIGH PRICE/EARNINGS MULTIPLES AND A LOT OF AGGRESSIVE MONEY THAT COULD TURN AND RUN VERY QUICKLY SAYS DAVID BOSTIAN CHIEF ECONOMIST AND INVESTMENT STRATEGIST AT HERZOG HEINE GEDULD INC IN NEW YORK NO ONE IS COUNSELING INVESTORS TO DUMP GROWTHORIENTED SMALL STOCKS WHOLESALE MANY COMPANIES ARE POISED TO POST IMPRESSIVE EARNINGS GROWTH IN COMING MONTHS AND INVESTORS HOLDING SUCH ISSUES IN THEIR PORTFOLIOS SHOULD REAP THE BENEFITS AS OTHER INVESTORS PUT INCREASING PREMIUMS ON EARNINGS GROWTH AND LESS EMPHASIS ON GAINS SPURRED BY DECLINING INTEREST RATES BUT SHARES OF SMALL COMPANIES THAT HAVE ALREADY HAD BIG GAINS MAY BE VULNERABLE TO SETBACKS YOU'LL WANT TO MANAGE YOUR PORTFOLIO WITH A DEFENSIVE EYE AND TAKE PROFITS IN THOSE STOCKS THAT HAVE HAD BIG RUNUPS SAYS SUSAN HIRSCH A SPECIALIST IN GROWTH SMALL STOCKS AT LEHMAN BROTHERS IN NEW YORK PERENNIALLY VOLATILE SMALLSTOCK GROWTH COMPANIES TEND TO BE WORTH LESS IN A RISING INTERESTRATE ENVIRONMENT MS HIRSCH POINTS OUT CHIEFLY BECAUSE ALTERNATIVE INVESTMENTS WITH LOWER RISK BECOME MORE ATTRACTIVE A BOND YIELDING 10 WITH RELATIVELY LOWER RISK IS A MORE COMPELLING ALTERNATIVE TO BUYING STOCK IN A COMPANY THAT MAY GROW 15 SHE SAYS THE LEHMAN STRATEGIST RECOMMENDS STAYING WITH SELECTED TECHNOLOGY STOCKS HEALTHCARE STOCKS AND ECONOMICALLY SENSITIVE ISSUES THAT HAVEN'T ENJOYED BIG GAINS WE SET A THREEYEAR WINDOW WHERE STOCKS CAN REALLY DELIVER SOLID BOTTOMLINE GROWTH AND ARE STILL SELLING AT FAIRLY MODERATE PRICEEARNINGS MULTIPLES SHE ADDS LEHMAN RECOMMENDS FOR EXAMPLE UNION SWITCH & SIGNAL INC AS A SMALLCAP ECONOMICINFRASTRUCTURE PLAY THE COMPANY WHICH MAKES FULLY INTEGRATED SWITCHING AND SIGNAL EQUIPMENT FOR MASSTRANSIT SYSTEMS IS A TURNAROUND STORY SAYS MS HIRSCH THE STOCK SHE ADDS IS TRADING AT A REASONABLE MULTIPLE OF 215 TIMES ESTIMATED EARNINGS OF 90 CENTS A SHARE FOR THE CURRENT YEAR UP FROM AN ESTIMATED 50 CENTS FOR 1993 LEHMAN ALSO FAVORS TWO SMALL GROWTHORIENTED HEALTHCARE STOCKS PHARMACEUTICAL MARKETING SERVICES A MEDICAL DATABASE COMPANY AND COMMUNITY HEALTH SYSTEMS INC A LOWCOST OPERATOR OF ACUTECARE HOSPITALS THAT HAS BEEN AN AGGRESSIVE ACQUIRER OF COMMUNITY HOSPITALS IN RURAL AREAS COMMUNITY HEALTH MS MOTT SAYS IS TRADING AT 16 TIMES LEHMAN'S EARNINGS ESTIMATE OF 133 A SHARE FOR THIS YEAR AT PRUDENTIAL SECURITIES HEALTHCARE STOCKS ARE ALSO IN FAVOR PARTICULARLY THOSE COMPANIES INVOLVED IN MAKING MEDICAL DEVICES WE'VE SEEN GOOD EARNINGS FROM MEDICAL DEVICE SEMICONDUCTOR AND COMPUTER SOFTWARE AND SERVICE COMPANIES SAYS CLAUDIA MOTT SMALLCAP MARKET STRATEGIST AT THE BROKERAGE FIRM MS MOTT SAYS SMALLCAP INVESTORS NEED TO BE LOOKING AT COMPANIES THAT HAVE HAD GOOD EARNINGS MOMENTUM AND HAVE REPORTED BETTERTHANEXPECTED NUMBERS THAT'S WHERE PERFORMANCE WILL COME FROM IN THE CURRENT UNSETTLED MARKET ONE OF PRUDENTIAL'S CURRENT FAVORITES IS AMERICAN MEDICAL ELECTRONICS INC A MANUFACTURER OF MEDICAL EQUIPMENT ON THE NEWISSUES FRONT MARKET PROS ARE ALSO COUNSELING INVESTORS TO FOCUS ON ECONOMICALLY SENSITIVE ISSUES AMONG THOSE IN THE PIPELINE AND THEY CAUTION A NUMBER OF SCHEDULED ISSUES PARTICULARLY BY GROWTH COMPANIES COULD BE PULLED IF THE CORRECTION BECOMES STEEP AND PROTRACTED IT WILL GET TOUGHER FOR LARGE DEALS TO GET DONE BUT WE HAVEN'T SEEN SIGNS OF CANCELLATIONS OR POSTPONEMENT YET OF INITIAL PUBLIC OFFERINGS BY COMPANIES SAYS ROBERT NATALE NEWISSUES ANALYST FOR STANDARD & POOR'S THE NUMBER OF OFFERINGS WILL DROP MORE THAN HALF FROM THEIR CURRENT AVERAGE OF MORE THAN 50 A MONTH TO UNDER 25 IF WE GET INTO FULL CORRECTION AND IF SMALLCAPS UNDERPERFORM HE PREDICTS AT A MINIMUM A SHARP CORRECTION WILL MEAN THAT NEW ISSUES WILL BE PRICED AT THE LOWER END OF THEIR PROPOSED RANGES BECAUSE SHARE PRICES OF COMPARABLE LISTED COMPANIES WILL HAVE DECLINED IN THE INTERIM MR NATALE SAYS WE FORECAST SOME TIME AGO THAT THE NUMBER OF OFFERINGS AND THE DOLLAR VALUE OF IPOS THIS YEAR WOULD NOT MATCH 1993'S TOTALS BECAUSE THERE WOULD BE A CORRECTION MR NATALE SAYS FOR NOW ATTRACTIVE PICKINGS IN THE IPO PIPELINE ARE FAIRLY SLIM BY HIS ESTIMATION HE LIKES CENTEX CONSTRUCTION PRODUCTS A PRODUCER OF CEMENT AGGREGATES AND GYPSUM WALLBOARD EXPECTED TO GO PUBLIC SOMETIME IN LATE MARCH WHETHER SMALLCAPS WILL BEGIN TO UNDERPERFORM THE OVERALL MARKET IN THE WEEKS AHEAD IS FAR FROM CERTAIN MARKET PROS SAY EVERYONE IS PLAYING DEFENSIVE BALL SAYS RICHARD BRUNO HEAD OF OVERTHECOUNTER TRADING AT PAINEWEBBER IN NEW YORK SENTIMENT IS SHORTTERM NEGATIVE THE QUESTION IS DOES IT GO LONGTERM NEGATIVE KEITH MULLINS MANAGING DIRECTOR OF SMALLSTOCK RESEARCH AT SMITH BARNEY SHEARSON THINKS THE MARKET WILL TURN MORE ACUTELY NEGATIVE FOR SMALLCAPS AS A WHOLE HE SEES A STRONG LIKELIHOOD OF A 15 TO 20 CORRECTION IN THE NEXT THREE TO SIX MONTHS SINCE 1960 THE LONGEST WE'VE GONE WITHOUT A CORRECTION OF 15 OR MORE IN THE SMALLCAP MARKET WAS 24 MONTHS HE POINTS OUT WE'RE NOW IN THE 20TH MONTH OF THE CURRENT CYCLE HISTORICALLY WE'VE NOW MOVED INTO THE DANGER ZONE MR MULLINS WHO LIKE OTHERS IS CONCERNED ABOUT THE VALUATIONS OF THE SMALLCAP SECTOR'S HIGHFLIERS SAYS HE FAVORS SERVICEORIENTED TRANSACTION PROCESSORS SUCH AS ENVOY COMPUTERS A COMPANY THAT PROCESSES MEDICAL CLAIMS AND CREDIT CARDS AND MEDAPHIS CORP WHICH PROCESSES PHYSICIANS' MEDICAL CLAIMS SMALLCOMPANY STOCKS REVERSED TWO CONSECUTIVE SESSIONS OF LOSSES IN SUBDUED TRADING FRIDAY AS BONDS POSTED MODERATE GAINS THE RUSSELL 2000 SMALLCAPITALIZATION STOCK INDEX CLIMBED 079 OR 030 TO END AT 263 ITS SESSION HIGH THE MEASUREMENT STAYED IN A NARROW RANGE NEVER FALLING BELOW 26221 SOME COMMUNICATIONS STOCKS REBOUNDED AFTER FALLING THURSDAY ON NEWS THAT THE PLANNED ACQUISITION OF TELECOMMUNICATIONS BY BELL ATLANTIC HAD COLLAPSED TELECOMMUNICATIONS CLASS A ROSE 1 1/2 TO 23 7/8 WHILE BELL ATLANTIC NYSE DROPPED 3/8 TO 54 1/8 AMONG THE SMALLER ISSUES IN THE GROUP CENTENNIAL CELLULAR ROSE 5/8 TO 20 1/8 AND INMAC A SANTA CLARA CALIF DATA COMMUNICATIONS PRODUCTS FIRM GAINED 3/4 TO 8 3/4 9402280087 940228 SHORT INTEREST IN NASDAQ STOCKS HITS NEW HIGH INCREASE IS 13TH IN A ROW COMES AMID FED BOOST IN SHORTTERM RATES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR THE 13TH CONSECUTIVE MONTH SHORT INTEREST ON THE NASDAQ STOCK MARKET SET A RECORD JUMPING 28 TO 7018 MILLION SHARES IN MIDFEBRUARY FROM MIDJANUARY'S 6824 MILLION THE CONTINUED CLIMB THIS MONTH IN UNCOVERED SHORT POSITIONS A GENERALLY BEARISH INDICATOR COMES PARTLY IN THE WAKE OF THE FEDERAL RESERVE BOARD'S FEB 4 SHORTTERM INTEREST RATE BOOST THAT SO UNSETTLED MARKETS FOR THE PREVIOUS 12 MONTHS INVESTORS HAD PLACED GROWING BETS THAT NASDAQ STOCKS MANY OF THEM WITH RICH PRICEEARNINGS MULTIPLES WERE SET FOR A FALL NOW THAT THE FED'S RATE RISE HAS USHERED IN A CORRECTION IN THE STOCK MARKET INVESTORS SEEM TO BE SAYING THAT THEY EXPECT SHARE PRICES TO RETREAT FURTHER MARKET PROFESSIONALS BELIEVE IT'S NOT A SURPRISE TO ME MTHAT NASDAQ SHORT INTEREST HIT ANOTHER RECORD IN FEBRUARY BECAUSE THERE ARE MORE STOCKS TODAY THAT ARE OVERVALUED THAN THERE WERE A MONTH AGO SAID STAN TRILLING SENIOR VICE PRESIDENT WITH PAINEWEBBER IN LOS ANGELES A SHORT SALE IS A BET THAT A STOCK WILL TUMBLE AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY GIVEN TIME AND NOT YET COVERED SHORT INTEREST ON THE NASDAQ NATIONAL MARKET COMPRISING THE LARGERCAPITALIZATION ISSUES CLIMBED 26 TO 6518 MILLION SHARES FROM 6353 MILLION A MONTH EARLIER AMONG THE SMALLCAP STOCKS WHICH MAKE UP A THIRD OF THE NASDAQ MARKET SHORT INTEREST JUMPED 62 TO 50 MILLION SHARES FROM 471 MILLION A MONTH EARLIER THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDFEBRUARY ROSE TO 239 FROM 226 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS ROSE TO 095 FROM 092 THE RATIO THE NUMBER OF TRADING DAYS THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS VIEWED AS A MEASURE OF TRADER SENTIMENT AMONG THE COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS COMCAST CORP'S CLASS A SPECIAL SHARES FELL 13 TO 154 MILLION AMERICAN POWER CONVERSION CORP FELL 10 TO 11 MILLION SHARES AND SNAPPLE BEVERAGE CORP FELL 21 TO 93 MILLION SHARES THE NASDAQ STOCKS WITH THE LARGEST VOLUME INCREASES IN SHORT INTEREST WERE SOUTHLAND CORP GREENWICH PHARMACEUTICALS INC OMEGA ENVIRONMENTAL INC AND SUN MICROSYSTEMS INC THOSE WITH THE LARGEST VOLUME DECREASES WERE LM ERICSSON TELEPHONE CO WHICH TRADES AS AN AMERICAN DEPOSITARY RECEIPT COMCAST MCI COMMUNICATIONS CORP AND TELECOMMUNICATIONS INC THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDFEBRUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJANUARY SEE ACCOMPANYING CHARTS WSJ FEB 28 1994 9402280086 940228 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GALE INDUSTRIES INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 300000 ADDITIONAL SHARES VIA PRUDENTIAL SECURITIES INC AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS HOSPITAL CO AN OFFERING OF AS MANY AS 94 MILLION COMMON SHARES AND 200 MILLION OF SUBORDINATED NOTES WITH AN OVERALLOTMENT OPTION FOR 780000 SHARES VIA MERRILL LYNCH & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP JALATE LTD AN INITIAL OFFERING OF 900000 COMMON SHARES VIA HJ MEYERS & CO AND SANDERS MORRIS MUNDY INC MINNESOTA EDUCATIONAL COMPUTING CORP AN INITIAL OFFERING OF 1638000 COMMON SHARES VIA WILLIAM BLAIR & CO PIPER JAFFRAY INC AND SALOMON BROTHERS INC MORRISON KNUDSEN CORP'S MK RAIL CORP UNIT AN INITIAL OFFERING OF UP TO EIGHT MILLION COMMON SHARES VIA MORGAN STANLEY & CO AND CS FIRST BOSTON CORP ORPAK INDUSTRIES AN INITIAL OFFERING OF 1325000 ORDINARY SHARES WITH AN OVERALLOTMENT OPTION FOR 198750 ADDITIONAL SHARES VIA FURMAN SELZ INC PROVINCE OF BRITISH COLUMBIA A SHELF OFFERING FOR 218750000 OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES VIKING STAR SHIPPING INC AN INITIAL OFFERING OF 135 MILLION COMMON SHARES VIA MORGAN STANLEY GOLDMAN SACHS & CO AND SMITH BARNEY SHEARSON INC WCI STEEL INC AN INITIAL OFFERING OF 5750000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 862500 ADDITIONAL SHARES VIA MERRILL LYNCH SALOMON BROTHERS AND FIELDSTONE FPCG SERVICES LP 9402280085 940228 CORRECTIONS & AMPLIFICATIONS OTO MELARA SPA OF ITALY THE MAKER OF A 127MM NAVAL GUN PROCURED BY THE SOUTH KOREAN NAVY SAYS THAT TRIALS CONDUCTED BY THE ITALIAN NAVY CONFIRM THE GUN'S COMPATIBILITY WITH FIVEINCH US SHELLS AND THAT THE SOUTH KOREAN MILITARY IS SATISFIED WITH THE TEST RESULTS AN ARTICLE DEC 29 ON SOUTH KOREA'S ARMS PURCHASES SAID THE GUN WAS INCOMPATIBLE WITH THE US AMMUNITION A VIEW EXPRESSED BY US DEFENSE OFFICIALS 9402280084 940228 BUSINESS BRIEF ACMAT CORP FIRM POSTS QUARTERLY PROFIT AGAINST YEARAGO DEFICIT ACMAT CORP'S FOURTHQUARTER EARNINGS WERE 11 MILLION OR 27 CENTS A SHARE COMPARED WITH A LOSS OF 624623 OR 14 CENTS A SHARE A YEAR AGO THE NEW BRITAIN CONN COMPANY BLAMED THE 1992 LOSS ON AN UNCOLLECTIBLE RECEIVABLE NET INCOME FOR 1993 WAS 39 MILLION OR 91 CENTS A SHARE UP FROM 28 MILLION OR 65 CENTS A SHARE IN 1992 THE SUPERIOR RESULTS FOR 1993 REFLECT OUR DEDICATION TO THE GROWTH OF PROFIT AND NOT REVENUE SAID HENRY W NOZKO SR CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE 1993 OPERATING EARNINGS WERE THE MOST PROFITABLE IN OUR 43YEAR HISTORY ACMAT DESIGNS FURNISHES AND INSTALLS INTERIORS IN COMMERCIAL INDUSTRIAL AND INSTITUTIONAL BUILDINGS AND PERFORMS ASBESTOS REMOVAL 9402280083 940228 BUSINESS BRIEF WOOLWORTH TO REPORT A 46 MILLION LOSS DUE TO SPECIAL CHARGE ON SALE OF STORES NEW YORK WOOLWORTH CORP SAID IT EXPECTS TO POST A 46 MILLION LOSS FOR ITS FISCAL FOURTH QUARTER MAINLY DUE TO A ONETIME CHARGE THAT WAS MORE THAN THREE TIMES THE RETAILER'S ORIGINAL ESTIMATE BUT EVEN WITHOUT THE CHARGE WOOLWORTH SAID ITS FOURTHQUARTER RESULTS TO BE RELEASED THIS WEEK WERE HURT BY DISAPPOINTING SALES AND HEAVY PROMOTIONAL ACTIVITY RESPONDING TO THE NEWS MOODY'S INVESTORS SERVICE INC LOWERED ITS RATING ON THE COMPANY'S LONGTERM SENIOR DEBT WOOLWORTH'S STOCK CLOSED AT 2250 DOWN 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY ON HEAVIERTHANNORMAL VOLUME WOOLWORTH SAID PRELIMINARY LOSSES FOR THE QUARTER ENDED JAN 29 ARE ESTIMATED AT 46 MILLION OR 35 CENTS A SHARE COMPARED WITH A PROFIT OF 165 MILLION OR 126 A SHARE A YEAR EARLIER IT SAID IT TOOK AN ESTIMATED 168 MILLION CHARGE TO COVER COSTS ASSOCIATED WITH THE SALE OF THE COMPANY'S WOOLCO STORES IN CANADA TO WALMART STORES INC WHEN WOOLWORTH ANNOUNCED THE SALE IN JANUARY IT ESTIMATED THE LOSS ON THE TRANSACTION AT 45 MILLION IT BLAMED THE INCREASE ON INVENTORY MARKDOWNS A DELAY IN CLOSING THE DEAL AND HIGHER COSTS FOR DISPOSING OF STORES THAT WEREN'T SOLD THE CHARGE WAS PARTIALLY OFFSET BY A 145 MILLION PRETAX REVERSAL OF A CHARGE TAKEN IN THE THIRD QUARTER WOOLWORTH SAID IT ESTIMATES THAT ITS OPERATING PROFIT WAS ONLY 2 MILLION IN THE QUARTER DOWN FROM 286 MILLION A YEAR EARLIER SHOWING WEAKNESS IN THE COMPANY'S BUSINESS MEANWHILE MOODY'S SAID IT DOWNGRADED THE RATING ON WOOLWORTH'S SENIOR LONGTERM DEBT TO SINGLEBAA1 FROM SINGLEA3 MOODY'S SAID IT WAS CONCERNED THAT THE COMPANY MARKED DOWN INVENTORIES IN ITS CONTINUING STORES IN ADDITION TO THOSE IT IS SELLING WOOLWORTH HAD NO IMMEDIATE COMMENT FOURTHQUARTER REVENUE IS ESTIMATED TO HAVE FALLEN TO 282 BILLION FROM 314 BILLION A YEAR EARLIER FOR ALL OF FISCAL 1994 WOOLWORTH SAID IT EXPECTS TO REPORT A LOSS OF 495 MILLION OR 376 A SHARE COMPARED WITH A PROFIT OF 280 MILLION OR 214 A SHARE A YEAR EARLIER THE FISCAL 1994 RESULTS ARE EXPECTED TO INCLUDE A 630 MILLION REPOSITIONING CHARGE REVENUE IS EXPECTED TO FALL 34 TO 963 BILLION FROM 996 BILLION 9402280082 940228 MARKETING & MEDIA ADVERTISING PUBLICSERVICE TELEVISION SPOTS EXPAND INTO 30MINUTE FORMAT BY KEVIN GOLDMAN PUBLICSERVICE ANNOUNCEMENTS THOSE 30SECOND SPOTS ON EVERYTHING FROM DRUNKEN DRIVING TO AIDS ARE EXPANDING INTO INFOMERCIALS A FORMAT PREVIOUSLY RESERVED FOR HAWKING MERCHANDISE THE ADVERTISING COUNCIL A NONPROFIT ORGANIZATION SUPPORTED BY ADVERTISERS AD AGENCIES AND THE MEDIA HAS PRODUCED ITS FIRST LONGFORM PROGRAM ON THE SUBJECT OF VOLUNTEERING TO HELP CHILDREN IN ANOTHER UNUSUAL MOVE THE HALFHOUR SHOW IS SCHEDULED TO AIR SUNDAY ON A MAJORITY OF ABC'S 225 AFFILIATED STATIONS USUALLY PUBLICSERVICE ANNOUNCEMENTS ARE SANDWICHED IN DURING THE WEE HOURS OF THE MORNING WHEN VIEWERSHIP IS AS LOW AS THE AD RATES BUT MANY OF THE CAPITAL CITIES/ABC STATIONS PLAN TO AIR THE PROGRAM BREAKING THE CYCLE CHANGING THE WORLD OF A CHILD AFTER THE HIGHLY RATED ABC NEWS PROGRAM THIS WEEK WITH DAVID BRINKLEY THE PUBLICSERVICE PROGRAM INCLUDES 2 1/2 MINUTES THAT EACH STATION MAY SELL FOR PAID ADVERTISEMENTS IF NO ADS ARE SOLD OTHER PUBLICSERVICE SPOTS WILL BE SHOWN THE PROGRAM FOCUSING ON THE IMPORTANCE OF EARLYINTERVENTION PROGRAMS FOR DISADVANTAGED CHILDREN IS SLICKLY PRODUCED AND VIEWERS WHO STUMBLE UPON IT MIGHT BE CONFUSED INITIALLY IT FEATURES GOOD MORNING AMERICA COHOST CHARLES GIBSON SITTING ON THE SET OF THE TOPRATED NETWORK MORNING SHOW THE LOGO OF THE SHOW ALSO IS USED MR GIBSON SAYS THAT THE VIEWER IS WITNESSING SOMETHING OF A BREAK IN OUR NORMAL ROUTINE TODAY HOWEVER A DIFFERENT KIND OF PROGRAM A DIFFERENT COMPANION HIS USUAL COHOST IS JOAN LUNDEN MR GIBSON WHO NARRATES THE PROGRAM INTRODUCES MARY NISSENSON A FORMER NETWORK CORRESPONDENT WHO IS THE PRESIDENT OF A CHICAGO INDEPENDENT PRODUCTION COMPANY FORESIGHT COMMUNICATIONS MS NISSENSON WROTE AND PRODUCED THE PROGRAM WHICH WAS FUNDED BY THE GERBER FOUNDATION THE CHARITABLE FOUNDATION ESTABLISHED BY GERBER PRODUCTS AND THE POINTS OF LIGHT FOUNDATION A CHARITABLE FOUNDATION BASED IN WASHINGTON THE SHOW'S PRODUCTION BUDGET OF 200000 IS A FRACTION OF WHAT MANY ADVERTISERS SPEND ON THEIR FLASHY 30SECOND COMMERCIALS THIS IS A VERY IMPORTANT BREAKTHROUGH FOR US AND I'M CONVINCED IT WON'T BE OUR LAST LONGFORM EFFORT SAYS RUTH A WOODEN PRESIDENT OF THE ADVERTISING COUNCIL DISCUSSIONS ARE UNDER WAY TO PRODUCE A SECOND LONGFORM PSA ON ORGAN DONATIONS TO BUTTRESS AN EXISTING CAMPAIGN WITH THE SLOGAN SHARE YOUR DECISION WITH YOUR FAMILY THE LONG FORM WILL GENERALLY LEND ITSELF TO MORE COMPLICATED ISSUES THAT AREN'T EASILY PUT INTO A 30SECOND PIECE OF ADVERTISING MS WOOD SAYS SHE SAYS ABC BECAME INVOLVED AFTER ROBERT A IGER PRESIDENT OF THE ABC TELEVISION NETWORK GROUP AND A MEMBER OF THE ADVERTISING COUNCIL'S BOARD SAW A VERSION OF THE PROGRAM AND SAID HE WANTED THE NETWORK'S EIGHT OWNED STATIONS AND AFFILIATES TO AIR IT THE ADVERTISING COUNCIL IS PLANNING TO OFFER AN ALTERNATIVE VERSION OF THE SHOW MINUS MR GIBSON FOR NONABC STATIONS MS NISSENSON NARRATES THAT PROGRAM STATIONS ALSO MAY HAVE THEIR OWN LOCAL NEWS ANCHORS NARRATE THE SHOW AN ABC SPOKESWOMAN SAYS THE NETWORK CAREFULLY REVIEWED MR GIBSON'S PARTICIPATION AND DETERMINED IT DIDN'T VIOLATE ANY NETWORK STANDARDS INDEED MS LUNDEN DOES VASELINE COMMERCIALS AS A PAID SPOKESWOMAN BOTH ARE EMPLOYEES OF ABC ENTERTAINMENT NOT ABC NEWS WHICH HAS TIGHTER RESTRICTIONS ON WHAT ITS EMPLOYEES MAY DO PROFESSIONALLY IN WATCHING THE SHOW A VIEWER ISN'T NECESSARILY AWARE THAT IT IS A PUBLICSERVICE ANNOUNCEMENT INDEED MS NISSENSON BRISTLES AT BEING PLACED IN THAT CATEGORY I WOULD BE VERY DISTRESSED TO HAVE THIS CALLED A 30MINUTE PSA SHE SAYS IT IS A DOCUMENTARY IN THE TRUEST SENSE OF THE WORD MS NISSENSON SAYS FORESIGHT COMMUNICATIONS WHICH ALSO PRODUCED 30SECOND PUBLICSERVICE ADS FOR NATIONAL BREAST CANCER AWARENESS MONTH WORKED WITH GREY ADVERTISING ONE OF MANY AGENCIES THAT PRODUCES PROBONO WORK FOR THE ADVERTISING COUNCIL GREY REVIEWED THE SCRIPT AND WORKED WITH THE FORESIGHT TEAM MS WOOD SAYS THE PROGRAM PROFILES SOME VOLUNTEERS AND THE CHILDREN WHO BENEFIT FROM THEIR WORK WE WANTED ETHNIC AND GEOGRAPHIC DIVERSITY MS NISSENSON SAYS WE DIDN'T WANT THIS TO BE ALL ABOUT THE BELTWAY WASHINGTON DC OR NEW YORK CITY MS WOOD SAYS SHE IS SURPRISED AT THE NUMBER OF ABC STATIONS TAKING THE SHOW INCREASINGLY NETWORK AFFILIATES USE THE TIME BETWEEN SUNDAY MORNING NEWS PROGRAMS AND AFTERNOON SPORTS TELECASTS TO SELL AN ENTIRE HALF HOUR TO AN INFOMERCIAL PUSHING SAY AN EXERCISE MACHINE OR JUICER BUT ABC SAYS ITS STATIONS HAVE A HISTORY OF AIRING PUBLICSERVICE PROGRAMMING ON SUNDAYS INCLUDING A RELIGION SERIES TITLED VISIONS AND VALUES PRODUCED BY THE INTERFAITH BROADCASTING COMMISSION ONE CONTRIBUTOR GERBER DOESN'T GET ANY CREDIT IN THE SHOW THE FOUNDATION ISN'T EVEN LISTED IN THE CLOSING CREDITS WE ARE KNOWN IN COMMUNITIES AS BEING AN ADVOCATE FOR CHILDREN A GERBER SPOKESMAN SAYS IT ISN'T NECESSARY FOR US TO GET THE EXTRA CREDIT MS WOOD HOPES OTHER ADVERTISING COUNCIL CLIENTS NOTICE THE THRIFTY PRICE AND WILL WANT TO PRODUCE LONGFORM PUBLICSERVICE SHOWS SHE SAYS THERE IS AN APPETITE FOR NEWS SHOWS AND WE HOPE TO BENEFIT FROM THAT COLGATEPALMOLIVE CO PULLED ITS ESTIMATED 30 MILLION MENNEN TOILETRIES BUSINESS FROM INTERPUBLIC GROUP AGENCIES AS PART OF A CONSOLIDATION OF ITS WORLDWIDE ADVERTISING WITH YOUNG & RUBICAM AND FOOTE CONE & BELDING COMMUNICATIONS INTERPUBLIC GROUP'S MCCANNERICKSON LOST THE MENNEN DEODORANTS ACCOUNT AND ANOTHER INTERPUBLIC UNIT LOWE & PARTNERS/SMS LOST MENNEN'S AFTERSHAVE AND BABYPRODUCTS ACCOUNTS THE MOVE WAS CONSIDERED INEVITABLE AFTER COLGATE ACQUIRED MENNEN IN 1992 BECAUSE INTERPUBLIC AGENCIES WORK FOR COLGATE RIVAL UNILEVER GENOVA HARTWICK JULIANO A SMALL GREENWICH CONN SHOP LOST THE ESTIMATED 5 MILLION MURPHY'S OIL SOAP ACCOUNT COLGATE SHUFFLED BRANDS BETWEEN ITS TWO GLOBAL AGENCIES PUTTING Y&R IN CHARGE OF MOST OF ITS PERSONAL AND ORALCARE ADVERTISING INCLUDING THE BIG COLGATE BRAND FOOTE CONE WAS PUT IN CHARGE OF HOUSEHOLD AND LAUNDRY PRODUCTS AND ALSO RECEIVED THE MENNEN AND MURPHY'S ACCOUNTS THE EFFECT ON BILLINGS COULDN'T BE DETERMINED BUT EXECUTIVES SAY THE SHIFT RESULTED IN A 35 MILLION BOON TO FOOTE CONE IN THE US AND A HEFTY INCREASE FOR YOUNG & RUBICAM OVERSEAS A COLGATE SPOKESMAN DECLINED TO COMMENT BEYOND SAYING THE SPLIT BETWEEN THE TWO IS AS EQUAL AS POSSIBLE COLGATE ALSO SAID IT WILL CHANGE THE WAY IT COMPENSATES AGENCIES BASING WHAT IT PAYS ON PERFORMANCE RATHER THAN ON A FIXED PORTION OF MEDIA BILLINGS AND INSTEAD OF PITTING ITS AGENCIES AGAINST EACH OTHER COLGATE SAID IT NOW WILL ASK VARIOUS OFFICES OF A SINGLE AGENCY TO COMPETE FOR AN ASSIGNMENT COLGATE WHICH SPENT MORE THAN 500 MILLION ON ADVERTISING IN 1993 SAID IT WILL SAVE MONEY UNDER THE NEW ARRANGEMENT AND PUT IT INTO A SUBSTANTIAL INCREASE IN AD SPENDING WILLIAM MUIRHEAD CHAIRMAN OF SAATCHI & SAATCHI ADVERTISING'S FLAGSHIP LONDON OFFICE WAS NAMED THE SUCCESSOR TO ROBERT KENNEDY WHO ABRUPTLY LEFT THE POST OF NORTH AMERICAN CHAIRMAN AND CHIEF EXECUTIVE LAST MONTH MR MUIRHEAD 47 YEARS OLD WHO HAS HEADED THE AGENCY'S LONDON OPERATIONS SINCE 1986 PRESIDED OVER THE DOWNSIZING THAT FOLLOWED THE HOLDING COMPANY'S OVERHEATED EXPANSION IN THE MID1980S HE HAS HEADED THE AGENCY'S EUROPEAN OPERATIONS SINCE 1992 SAATCHI & SAATCHI ADVERTISING IS A UNIT OF SAATCHI & SAATCHI CO MR MUIRHEAD'S LIKELY SUCCESSOR IN LONDON IS JEREMY SINCLAIR WORLDWIDE EXECUTIVE CREATIVE DIRECTOR AND COCHAIRMAN ALLY & GARGANO AT ALLY & GARGANO MAL MACDOUGALL NAMED CHIEF CREATIVE OFFICER IN 1991 IS GIVING UP DAYTODAY CONTROL OF THE AGENCY'S CREATIVE OUTPUT CONCENTRATING ON THREE ACCOUNTS HE DREW TO THE AGENCY AND WARREN DECHTER THE AGENCY'S 55YEAROLD PRESIDENT IS LEAVING FOR MARKETING CORP OF AMERICA THE COMPANY THAT HAD SOLD ITS STAKE IN ALLY & GARGANO TO WESRAY/VESTAR CAPITAL CORP TONY FISHER 49 YEARS OLD SUCCEEDS MR MACDOUGALL 64 AS EXECUTIVE CREATIVE DIRECTOR ERIC VON DER LIETH 51 WAS NAMED AN EXECUTIVE VICE PRESIDENT EPB EARLE PALMER BROWN BETHESDA COMPLETED ITS EXPECTED ACQUISITION OF THE PHILADELPHIA OFFICE OF KETCHUM ADVERTISING EPB SAID IT WILL MERGE THE 55 MILLION KETCHUM OFFICE WITH ITS OWN PHILADELPHIA OPERATIONS WHICH BILL AN ESTIMATED 117 MILLION BRISTOL BRISTOLMYERS SQUIBB TAPPED THE ASIA OPERATIONS OF WPP GROUP'S OGILVY & MATHER TO HANDLE A NUMBER OF CONSUMER BRANDS INCLUDING CLAIROL HAIRCOLORING BRANDS IN SOUTHEAST ASIA AND BUFFERIN IN CHINA BRISTOL DECLINED TO SAY WHICH OF ITS AGENCIES HAD HANDLED THE ASSIGNMENTS PREVIOUSLY CHIAT/DAY MELLON BANK CORP PITTSBURGH PULLED ITS MELLON TRUST ACCOUNT FROM CHIAT/DAY NEW YORK CONSOLIDATING IT WITH ITS RETAIL AND WHOLESALE BANKING ADVERTISING AT WERNER CHEPELSKY & PARTNERS PITTSBURGH BILLINGS COULDN'T BE DETERMINED ACCOUNTS MARTIN AGENCY RICHMOND WON THE 5 MILLION CHECKERS DRIVEIN RESTAURANTS ACCOUNT BESTING TWO OTHER CONTENDERS CHIAT/DAY AND AYER INDUSTRY EXECUTIVES SAID 9402280080 940228 POLITICS & POLICY DURENBERGER IS REINDICTED IN LIVINGEXPENSES CASE WASHINGTON SEN DAVID DURENBERGER R MINN WAS REINDICTED ON CHARGES THAT HE ILLEGALLY BILLED THE GOVERNMENT FOR LIVING EXPENSES IN HIS OWN MINNESOTA HOME AN EARLIER INDICTMENT COVERING THE SAME CHARGES WAS DISMISSED IN DECEMBER AFTER US DISTRICT JUDGE WARREN URBOM FOUND THAT PROSECUTORS HAD IMPROPERLY USED PRIVILEGED SENATE RECORDS AS EVIDENCE IN DISMISSING THE INDICTMENT JUDGE URBOM CRITICIZED THE PROSECUTORS AS BEING OVERZEALOUS BUT HE ALSO INDICATED A NEW INDICTMENT WAS LIKELY IN THAT RELIANCE UPON THE OFFENSIVE EVIDENCE DOES NOT APPEAR TO BE NECESSARY IN A STATEMENT SEN DURENBERGER SAID I AM ABSOLUTELY CONFIDENT THAT I WILL BE EXONERATED IN A TRIAL AND I LOOK FORWARD TO VINDICATION SEN DURENBERGER HAS BEEN FORMALLY DENOUNCED BY THE SENATE AND HAD HIS LAW LICENSE SUSPENDED FOR FALSIFYING REPORTS RELATING TO HIS MINNESOTA EXPENSES THE NEW INDICTMENT SAYS THE SENATOR HID HIS OWNERSHIP IN A CONDOMINIUM SO THE GOVERNMENT WOULD REIMBURSE HIM FOR HIS STAYS THERE ACCORDING TO PROSECUTORS SEN DURENBERGER SUBMITTED FRAUDULENT VOUCHERS FOR 3825 FOR VISITS TO THE CONDO IF CONVICTED HE FACES A MAXIMUM OF 10 YEARS IN PRISON AND A 500000 FINE 9402280079 940228 MCI TO DISCLOSE PLANS COVERING BIG EXPANSION STRATEGIC PROPOSAL IS SAID TO POSSIBLY INVOLVE INVESTMENT IN NEXTEL BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP PLANS TO ANNOUNCE TODAY A MAJOR EXPANSION THAT MAY ENTAIL AN INVESTMENT IN NEXTEL COMMUNICATIONS INC A WIRELESSSERVICES PROVIDER PEOPLE FAMILIAR WITH MCI'S PLANS SAID NEXTEL WOULD BE THE LIKELIEST CANDIDATE TO FILL OUT MCI'S STRATEGY TO EXPAND INTO WIRELESS SERVICES AND CHALLENGE ITS BIGGER ARCHRIVAL AMERICAN TELEPHONE & TELEGRAPH CO WHICH IS SET TO BUY GIANT MCCAW CELLULAR COMMUNICATIONS INC MCI DECLINED TO COMMENT ON ITS PLANS OTHER THAN TO SAY IT WOULD MAKE A MAJOR ANNOUNCEMENT TODAY INVOLVING ITS NETWORKMCI EXPANSION PLAN NEXTEL OFFICIALS COULDN'T BE REACHED FOR COMMENT NEXTEL SHARES ROSE 2125 ON FRIDAY OR 58 TO CLOSE AT 38625 A SHARE ON THE NASDAQ STOCK MARKET NEXTEL OPERATES A NATIONWIDE WIRELESS RADIO NETWORK FOR DISPATCH SERVICES SUCH AS TAXIS THE COMPANY IS TURNING ITS NETWORK INTO A NATIONWIDE PHONE SERVICE REACHING HUNDREDS OF US MARKETS TO RIVAL CELLULAR PHONE NETWORKS NEXTEL HAS BEEN ON AN ACQUISITION BINGE BUYING UP SIMILAR OPERATORS OF SOCALLED SPECIALIZED MOBILE RADIO SMR SERVICES THIS TYPE OF SERVICE USES A RADIO SPECTRUM THAT'S SIMILAR TO ONE USED BY CELLULAR PHONE SERVICES NEXTEL'S CURRENT OWNERS INCLUDE COMCAST CORP A CABLETV AND CELLULAR CARRIER AND MOTOROLA INC THE TELECOMMUNICATIONS EQUIPMENT MANUFACTURER IT ISN'T CLEAR HOW MUCH A NEXTEL PURCHASE WOULD COST THE COMPANY'S MARKET VALUE EXCEEDS 3 BILLION MCI LAUNCHED A STRATEGY EARLY LAST MONTH TO EXPAND ITS NETWORK TO PROVIDE LOCAL TELECOMMUNICATIONS SERVICES IN ADDITION TO ITS BASIC LONGDISTANCE SERVICE MCI SAID IT WOULD ACCOMPLISH AN EXPANSION THROUGH ALLIANCES WITH WIRELESS NETWORKS AND CABLETELEVISION COMPANIES THAT COULD CARRY ITS LONGDISTANCE TRAFFIC LOCALLY THE NATION'S NO 2 LONGDISTANCE CARRIER HAD BEEN POISED TO ENTER THE BIDDING FOR LICENSES TO PROVIDE A NEW KIND OF WIRELESS SERVICE CALLED PERSONAL COMMUNICATIONS SERVICES HOWEVER THERE HAS BEEN TALK THAT THE FEDERAL COMMUNICATIONS COMMISSION MAY DELAY THE BIDDING FOR PCS LICENSES UNTIL 1995 MCI WATCHERS SAID THE COMPANY MAY HAVE DECIDED IT WAS BETTER TO LAUNCH ITS WIRELESS ATTACK NOW VIA NEXTEL THAN TO WAIT FOR THE NEBULOUS WORLD OF PCS TO DEVELOP IN FACT MCI'S HEAD PCS STRATEGIST RESIGNED RECENTLY INDICATING THE COMPANY WAS READY TO TAKE ANOTHER TACK MCI WAS CLOSE TO SIGNING AN ALLIANCE WITH TELECOMMUNICATIONS INC BEFORE THE DENVERBASED CABLE GIANT STUNNED THE INDUSTRY BY ANNOUNCING LAST FALL THAT IT WOULD BE ACQUIRED BY BELL ATLANTIC CORP A PLAN THAT HAS SINCE COLLAPSED WITH THAT MARRIAGE NOW OFF MCI COULD STILL PUT TOGETHER AN ALLIANCE WITH TCI AND OTHER CABLE COMPANIES THE CABLE COMPANIES COULD CUT THE COSTS MCI MUST INCUR TO HOOK UP ITS LONGDISTANCE SERVICE WITH LOCAL PHONE SERVICE THESE STIFF FEES NOW AMOUNT TO ABOUT 45 CENTS ON EVERY DOLLAR MCI TAKES IN IN REVENUE THE NETWORKMCI PLAN IS DESIGNED IN PART TO CUT THESE COSTS BY PUTTING MCI DIRECTLY INTO COMPETITION WITH LOCAL PHONE COMPANIES IN EACH OF THEIR MARKETS AND MCI HAS BEGUN BUILDING LOCAL PHONE NETWORKS IN 20 US CITIES TO ACCOMPLISH ITS GOALS MCI IS GETTING MAJOR HELP TO FINANCE ITS DREAMS FROM ITS 20 OWNER UK GIANT BRITISH TELECOMMUNICATIONS PLC FOR ITS MCI STAKE BT IS PAYING THE COMPANY 43 BILLION IN CASH ANALYSTS HAVE SAID THAT MCI COULD RAISE TWICE AS MUCH AS THAT BY BORROWING AGAINST THE BT CASH IN ADDITION TO ITS BT ALLIANCE MCI HAS AN AGREEMENT TO SHARE TRAFFIC WITH STENTOR A CONSORTIUM THAT IS CANADA'S LARGEST LONGDISTANCE CARRIER AND MCI RECENTLY ANNOUNCED PLANS TO BUILD A NETWORK IN MEXICO WITH GRUPO FINANCIERO BANAMEXACCIVAL MCI CLOSED AT 2650 A SHARE UP 875 CENTS IN TRADING FRIDAY ON THE NASDAQ STOCK MARKET 9402280078 940228 BUSINESS BRIEF AKZO NV CHEMICAL GROUP SAYS PROFIT DECLINED BY 15 LAST YEAR DUTCH CHEMICAL GROUP AKZO NV SAID NET PROFIT IN 1993 FELL 15 FROM THE PREVIOUS YEAR SQUEEZED BY EXTRAORDINARY CHARGES AKZO'S PROFIT TOTALED 549 MILLION GUILDERS 284 MILLION OR 1167 GUILDERS 6 A SHARE DOWN FROM 646 MILLION GUILDERS OR 1406 GUILDERS A SHARE IN 1992 THE RESULTS INCLUDE 144 MILLION GUILDERS OF EXTRAORDINARY CHARGES COMPARED WITH 66 MILLION GUILDERS IN 1992 BUT THE COMPANY SAID RESULTS WERE ACCEPTABLE GIVEN THE EFFECTS OF RECESSION IN MANY EUROPEAN COUNTRIES AKZO'S SALES EDGED 12 LOWER TO 1651 BILLION GUILDERS FROM 1671 BILLION GUILDERS IN 1992 ON LOWER SELLING PRICES AS WELL AS THE ADVERSE EFFECTS OF ACQUISITIONS AND DIVESTMENTS THE COMPANY LEFT ITS DIVIDEND UNCHANGED AT 650 GUILDERS A SHARE 9402280076 940216 REVIEW & OUTLOOK EDITORIAL WEATHER BLATHER IT HAS BEEN SNOWING A LOT YES AND WHY NOT IT'S WINTER THIS SIMPLE FACT SEEMS TO HAVE EVADED THE LEGIONS BUSY BOTH IN TV AND PRINT BEMOANING THE INCLEMENT WEATHER IN TERMS MORE APPROPRIATE TO AN EARTHQUAKE OR SOME SIMILAR LARGE NATURAL DISASTER SOME OF US IN FACT CAN'T HELP FEELING THAT THERE IS SOMETHING AT LEAST A LITTLE CLEMENT IN WEATHER THAT PRODUCES ALL THOSE STUNNING WHITE LANDSCAPES DAY AND NIGHT FOR OVER A WEEK WE HAVE HEARD AND READ OF THE DREADFUL BATTERING OF THIS CRUEL WINTER WEATHERFORECASTERS BABBLE BREATHLESSLY OF WHETHER THEY WILL HAVE TO BRING MORE BAD NEWS AND MORE PUNISHMENT LET US STIPULATE HERE THAT YES SNOWSTORMS DO CAUSE HARDSHIP CARS GET STUCK IN DRIFTS COMMUTER TRAINS DON'T RUN PLANES DON'T FLY SALT SPREAD ON SIDEWALKS GETS IN DOGS' PAWS WHAT WE OBJECT TO IS THE NOTION PUT FORWARD BY ALL THE WEATHERNEWSFOLK THAT SNOW IS A DREAD CURSE AND THE LIKELIHOOD OF PRECIPITATION OF ANY KIND AN UNWANTED CALAMITY THE FACT IS THAT MANY OTHERWISE BUSINESSLIKE ADULTS WALKED AROUND AMERICAN CITIES LAST FRIDAY THE OCCASION OF A HEAVY STORM LOOKING EXHILARATED AS THEY NAVIGATED SNOWBANKS AND BURIED SIDEWALKS IF SNOW IS SO TERRIBLE HOW COME SO MANY PEOPLE WENT ABOUT NEW YORK CITY'S STORMBLOWN STREETS WITH BIG SMILES AND DANCING EYES LAST WEEK EVEN AS THEY WERE BEING PELTED THIS SORT OF WEATHER IS WHAT IS SUPPOSED TO HAPPEN IN WINTER BUT GO TELL THAT TO THE WEATHER BROADCASTERS CARRYING ON AS THOUGH THE NATION WERE CONFRONTING THE GRAVEST OF NATIONAL EMERGENCIES TUNE IN WHERE YOU WILL AND YOU'LL GET THE WORD ABOUT THE MISERY ABOUT TO BEFALL US OR THAT WE'VE JUST AVOIDED BECAUSE THE STORM SHIFTED ETC ETC IF THE STORM COMES WE'RE ASSURED THE WELLKNOWN WEATHER REPORTERS BLITHER HUMBUG AND BLATHER STAND READY TO PROVIDE TEAM COVERAGE THOSE WEATHER TEAMS OUT THERE PALPITATING ABOUT WHAT A MISERABLE SNOWY DAY IT IS AND HOW MISERABLE TOMORROW IS GOING TO BE AND HOW SORRY THEY ARE TO HAVE TO BRING US THE CRUSHING NEWS OF IT ALL DON'T OF COURSE HAVE REASON TO FEEL QUITE THAT MISERABLE THEMSELVES WHAT WITH ALL THE AIR TIME THEY'VE BEEN GETTING THIS SHOULD BE INDEED THE WINTER OF THEIR CONTENT SO IT IS TOO FOR LOTS OF OTHER GROWNUPS OURSELVES INCLUDED WHO HAVEN'T YET LEARNED TO LOOK AT SNOW AS A GRIM EVENT AND WHO FEEL FORECASTERS' GLOOM NOTWITHSTANDING AS EXCITED ABOUT THE PILES OF WHITE SWIRLING DOWN AS WHEN THEY WERE CHILDREN SEE RELATED LETTER LETTERS TO THE EDITOR LET IT SNOW LET IT SNOW LET IT SNOW WSJ FEB 28 1994 9402160148 YY94 MM02 9402280075 940228 FORGET MIDEAST PEACE AIM FOR DIVORCE BY DAVID BROOKS HEBRON THE TOMB OF THE PATRIARCHS WHERE DR BARUCH GOLDSTEIN MASSACRED DOZENS OF ARAB WORSHIPPERS FRIDAY IS BOTH A SYNAGOGUE AND A MOSQUE IN THE SMALL JEWISH PRAYER ROOMS THE ARKS CONTAINING THE TORAHS ARE PUSHED UP AGAINST WALLS ENGRAVED WITH ARABIC VERSES UP UNTIL FRIDAY THERE WERE A SERIES OF ELABORATE RULES GOVERNING THE TWO RELIGIONS' USE OF THE SHRINE THE BASIC PRINCIPLE BEING THAT TO KEEP ORDER IT WAS NECESSARY TO KEEP THE TWO GROUPS APART JEWS WERE NOT PERMITTED IN THE BUILDING ON FRIDAYS AND PRAYED THERE MAINLY IN THE MORNINGS JEWS WERE ALLOWED TO SWEEP THE FLOOR BUT THEY COULD NOT MOP BECAUSE SUCH CLEANING WOULD IMPLY OWNERSHIP ALL THE ELABORATE RULES WERE SHOT TO BITS ON FRIDAY A WARNING FOR ANY PEACEPROCESS NEGOTIATORS WHO THINK THEY CAN PAPER OVER ANTIPATHIES WITH ELABORATE COMPROMISES HEBRON WAS THE FIRST JEWISH CITY ABRAHAM THE FOUNDER OF THE JEWISH RELIGION IS BURIED A FEW YARDS FROM WHERE GOLDSTEIN EMPTIED HIS MACHINE GUN AS ARE ISAAC SARAH JACOB REBECCA AND LEAH IT WAS THE FIRST TOWN JEWS RESETTLED WHEN THEY REGAINED ACCESS TO THE WEST BANK IN 1967 GOLDSTEIN LIVED IN KIRYAT ARBA A BIG SUBURBANSTYLE COMMUNITY UP ON A HILL DOWN IN THE CENTER OF THE CITY IS A SMALLER BRANCH OF THE SETTLEMENT A FORTRESS WITH ABOUT 200 PEOPLE BUILT AROUND AN ANCIENT SYNAGOGUE THEY LIVE CHEEK BY JOWL WITH 50000 ARABS WHO DETEST THEM WHEN THEY LEAVE THEIR FRONT DOOR PALESTINIAN KIDS CAN PELT THEM WITH ROCKS AND THEN DASH INTO THE DARK ALLEYS OF THE NEIGHBORING MARKETPLACE KNIFINGS AND SHOOTINGS HAVE BECOME MONTHLY EVENTS TERRORISTS PASS THE SETTLERS' CARS ON THE ROAD AND SPRAY THEM WITH MACHINE GUN BULLETS TWO FRIDAYS BEFORE THE MASSACRE A GROUP OF ISRAELI SOLDIERS WERE AT THEIR POSTS OUTSIDE THE HEBRON COMMUNITY WHILE SHIRTSLEEVED SETTLERS UNLOADED A FEW DOZEN RIFLES FROM A JEEP NEARBY A FATHER WAS PUSHING HIS DAUGHTER IN A STROLLER THESE SETTLERS OFTEN HAVE EIGHT OR NINE KIDS THE VANS THAT TAKE THE KIDS TO SCHOOL ARE FREQUENTLY STONED ONE FATHER SAID THAT HIS THREEYEAROLD WOULD WAKE UP AT NIGHT SCREAMING ABOUT THE STONES AND SNAKES IN HIS BED I DON'T KNOW ABOUT BRINGING KIDS INTO ALL THIS ONE OF THE SOLDIERS MUSED AS HE WATCHED THE STROLLERS AND THE GUNS BEING UNLOADED THE SOLDIERS DON'T SAY IT OPENLY BUT IT'S CLEAR THAT THEY SUSPECT THE SETTLERS IN HEBRON ARE NUTS IT'S A COMMON SUSPICION IN ISRAEL AND BARUCH GOLDSTEIN'S MASSACRE CLINCHED THE ISSUE YESTERDAY THE ISRAELI GOVERNMENT DISARMED THE SETTLERS LIVING IN THIS COMMUNITY ESSENTIALLY MAKING THEM PRISONERS IN THEIR HOMES THE LARGER INFLUENCE OF THIS EVENT WILL BE THE WAY IT TAINTS THE SETTLER MOVEMENT AS A WHOLE IF ALL THE WEST BANK SETTLEMENTS WERE LIKE HEBRON WITH NO STRATEGIC IMPORTANCE AND FILLED WITH FANATICS THEN ISRAELIS WOULD HAVE FEW QUALMS ABOUT DISMANTLING THEM BUT MOST SETTLEMENTS ARE NOT LIKE THAT SO UP UNTIL NOW IT'S ALWAYS BEEN A TOUGHER CALL THEY SHOULD TITLE TRIPS THROUGH THE WEST BANK COMMUNITIES THE FROM HERE YOU CAN SEE TOUR BECAUSE AT EACH SPOT SOMEBODY ANNOUNCES FROM HERE YOU CAN SEE THE PLANES LAND AT TEL AVIV AIRPORT OR FROM HERE YOU CAN SEE THE ROAD THE IRAQI TANKS WOULD TAKE IN AN INVASION MANY SETTLEMENTS HAVE STRATEGIC IMPORTANCE AND IT IS HARD NOT TO ADMIRE MANY OF THE SETTLERS THEY DEVOTE THEIR LIVES TO SOMETHING OUTSIDE THEMSELVES AND TAKE RESPONSIBILITY FOR THEIR BELIEFS A DISPROPORTIONATE NUMBER OF THEM HAVE MOVED FROM THE US NOT ONLY THE DEMENTED ONES SUCH AS GOLDSTEIN BUT THE VIRTUOUS ONES FOUND IN ELI SHILOH AND EFRAT IT'S A LIFE SLIGHTLY APART FROM THE MEDIA AND COMMERCIALISM DEVOTED TO FAMILY PEOPLE FEEL THAT BY BUILDING NEW PLACES ON THESE BARREN HILLTOPS THEY ARE SERVING JUDAISM AND ISRAEL YOU WASH OFF THE COSMETICS YOU'VE GOT NO TV YOU'RE DOING SOMETHING YOU'VE GOT THE ROAR OF HISTORY AROUND YOU SAYS A SETTLER ON A HILLTOP OVERLOOKING JERICHO YOU COME HERE AND THERE'S SUCH A CLEAR DESIRE TO HELP ONE ANOTHER THAT YOU DON'T FEEL YOU'RE IMPOSING ON PEOPLE SAYS A PRINCETON GRAD IN ELI WE WERE BROUGHT UP ON THE STORIES OF THE PIONEERS WHO BUILT ISRAEL I DON'T THINK WHAT WE'VE DONE IN THE PAST 10 OR 15 YEARS HERE IS GOING TO PALE IN ANY WAY SHAPE OR FORM SAYS SCRANTONBORN YECHIEL LEITER A LEADER OF THE MOVEMENT BUT IN THE END YOU CAN'T BE A PIONEER JUST FOR THE SAKE OF BEING A PIONEER AND JUST BECAUSE YOU ARE HEROIC DOESN'T MEAN YOUR CAUSE IS REALISTIC SURVEY RESULTS OVER THE PAST FEW MONTHS INDICATE THAT MANY MAINSTREAM ISRAELIS ARE SAYING FAREWELL TO THE WEST BANK WHILE TRYING TO PRESERVE ISRAELI SECURITY IN OTHER WAYS MORE ARE REGARDING THE SETTLER MOVEMENT AS A FAILURE THE RAGE SHAME AND REVULSION OVER THE MASSACRE GIVES ISRAELIS ANOTHER REASON TO WANT TO CUT THEIR TIES TO THE WEST BANK MESS AND GET OUT IF THE SETTLER MOVEMENT IS INDEED A FAILURE IT IS BECAUSE THE RULEMAKERS AT THE TOMB OF THE PATRIARCHS HAD THE RIGHT IMPULSE THE ONLY WAY TO KEEP ORDER IN THE WEST BANK IS TO KEEP THE TWO PEOPLES APART COMMUNITIES OF JEWS AMID AN ARAB POPULATION INVOLVE ISRAEL IN THE SORT OF PERPETUAL IRRITATION THAT A MODERN DEMOCRACY IS NOT WILLING TO TOLERATE IF THE PEACE PROCESS IS TO WORK IT CAN'T BE ABOUT TRUE PEACE THERE WILL BE NO MILLENIAL ENDOFHISTORY MOMENT AFTER WHICH ISRAEL WILL LIVE WITH ITS NEIGHBORS THEY WAY LUXEMBOURG LIVES IN EUROPE IT'S BETTER TO THINK OF THE CURRENT PROCESS AS A DIVORCE SUCCESSFUL TALKS WILL BE ABOUT WHERE TO BUILD WALLS BETWEEN THE PALESTINIANS AND ISRAELIS AND HOW TO DIVIDE OR MANAGE THE ASSETS THEY BOTH CLAIM FEW PALESTINIANS WANT TO LIVE SIDE BY SIDE WITH ISRAELIS RAMPANT ANTISEMITISM CULTURAL DIFFERENCES FEAR OF ISRAELI ECONOMIC DOMINATION ARE AMONG THE FACTORS THAT WILL PREVENT INTIMATE CONTACT AS THEY HAVE BETWEEN ISRAEL AND EGYPT NOR IS IT REALISTIC TO EXPECT A DEMOCRACY LIKE ISRAEL TO HAVE NORMAL RELATIONS WITH THE CHAOTIC REVOLUTIONARYSTYLE REGIME THAT YASSER ARAFAT IS CONSTRUCTING IF NOTHING ELSE THE HEBRON MASSACRE SHOULD END THE ERA OF ILLUSIONS THAT FOLLOWED THE HANDSHAKE ON THE WHITE HOUSE LAWN NAIVE BUSINESSMEN WERE TALKING ABOUT MIDEAST COMMON MARKET THAT'S NOT GOING TO HAPPEN BUT AT THE END OF THE TALKS THERE COULD BE A SITUATION IN WHICH ARAB NATIONS RECOGNIZE ISRAEL'S RIGHT TO EXIST THEN ALL SIDES COULD DO BUSINESS WHEN THEY HAVE TO AND IGNORE EACH OTHER WHEN THEY DON'T IT'S NOT PEACE BUT IT'S BETTER THAN WHAT'S BEEN GOING ON IN HEBRON RECENTLY MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9402280074 940228 CRESTAR FINANCIAL PLANS BUYBACK RICHMOND VA CRESTAR FINANCIAL CORP AUTHORIZED THE REPURCHASE OF AS MANY AS 750000 SHARES IN THE NEXT 12 MONTHS THE BANK HOLDING COMPANY COMPLETED A PREVIOUS 500000 SHARE BUYBACK AUTHORIZATION IN 1993 CRESTER'S BOARD ALSO AUTHORIZED IN NOVEMBER A SEPARATE 450000 SHARE REPURCHASE IN CONJUNCTION WITH THE PENDING ACQUISITION OF ANNAPOLIS BANCORP AT THE END OF 1993 CRESTAR HAD 375 MILLION SHARES OUTSTANDING 9402280073 940228 WHO'S NEWS AMERICAN ELECTRIC POWER CO AMERICAN ELECTRIC POWER CO COLUMBUS OHIO GERALD P MALONEY 60 YEARS OLD VICE PRESIDENT OF THIS ELECTRICUTILITY HOLDING COMPANY WAS NAMED A DIRECTOR TEMPORARILY INCREASING BOARD MEMBERSHIP TO 13 A COMPANY SPOKESWOMAN SAID THE BOARD WILL RETURN TO 12 MEMBERS AFTER THE ANNUAL MEETING IN LATE APRIL AS W ANN REYNOLDS WON'T SEEK REELECTION MR MALONEY ALSO IS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE COMPANY'S AEP SERVICE CORP UNIT 9402280072 940228 FDIC IS PREPARED TO ISSUE RULES ON BANK CONVERSIONS WASHINGTON FEDERAL DEPOSIT INSURANCE CORP IS PREPARED TO ISSUE RULES GOVERNING CONVERSION OF CERTAIN MUTUAL SAVINGS BANKS TO STOCKHOLDER INSTITUTIONS ANDREW HOVE FDIC ACTING CHAIRMAN ON FRIDAY DISPELLED ANY REMAINING DOUBTS ABOUT HIS AGENCY'S POWER TO ISSUE SUCH RULES MR HOVE SAID IN TESTIMONY BEFORE THE SENATE BANKING COMMITTEE THAT THE REGULATORY AGENCY HAS AUTHORITY TO ISSUE RULES GOVERNING SUCH CONVERSIONS SIMILAR TO POWERS HELD BY THE OFFICE OF THRIFT SUPERVISION THERE HAD BEEN SOME DOUBT ABOUT WHO HAD AUTHORITY THE FDIC OR STATE REGULATORS TO SET RULES FOR SUCH CONVERSIONS THE FDIC LATE LAST MONTH PROPOSED ONLY GUIDELINES AIMED AT PREVENTING INSIDERS FROM PROFITING EXCESSIVELY AT THE EXPENSE OF DEPOSITORS IN CONVERSIONS IT DIDN'T TAKE STRONGER ACTION BECAUSE ITS ATTORNEYS VOICED DOUBTS THAT IT HAD OTSSTYLE AUTHORITY TO REGULATE CONVERSIONS THE FDIC HAS SINCE ADOPTED INTERIM RULES TO CURB INSIDERCONVERSION WINDFALLS SAYING IT WILL CONSIDER OTSTYPE REGULATIONS THE FDIC OVERSEES STATECHARTERED SAVINGS BANKS HOWEVER BECAUSE IT DIDN'T HAVE CONVERSION RULES OFTENWEAK STATE REGULATIONS PREVAILED THE OTS SUPERVISES FEDERALLY CHARTERED AND STATECHARTERED THRIFTS AND FEDERALLY CHARTERED SAVINGS BANKS 9402280071 940228 OUT BEFORE DAWN HOME AFTER DARK LIFE'S A SEAT IN A VAN UFOS AND TIFFS ABOUT TRAVEL OCCUPY THESE COMMUTERS WEARY OF WINTER WEATHER BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL WATERFORD VA SOMETHING THAT IS NOT QUITE ICE AND NOT QUITE SNOW PELTS DOWN FROM THE PREDAWN SKY GEESE HONK IN THE GLOOM A VAN HEADLIGHTS ON CRUNCHES TO A HALT AND A BUNDLED MAN WITH A COFFEE MUG CLIMBS INSIDE WHAT IS IT SNOW SLEET I THINK OR SOMETHING IN BETWEEN CALL IT SNEET THERE ARE MORE STOPS MORE BUNDLES WITH MUGS THEN THE VAN SWERVES OFF A COUNTRY LANE AND MERGES INTO THE RIBBON OF RED TAILLIGHTS CRAWLING TOWARD WASHINGTON 40 MILES AWAY WITH YAWNS SIGHS AND SHIFTING OVERCOATS THE VAN POOL SETTLES IN FOR ANOTHER LONG NIGHT'S JOURNEY INTO DAY WE LEAVE HOME IN THE DARK WE GET HOME IN THE DARK AND WE SEE MORE OF EACH OTHER THAN WE DO OF OUR SPOUSES SAYS ABBIE CUTTER A VETERAN OF THE SEVENPERSON POOL IT'S A WEIRD WAY TO LIVE NEVER HAS THE LIFE OF THE EXURBAN COMMUTER BEEN WEIRDER THAN THIS WINTER WHEN HOURLONG DRIVES HAVE OFTEN STRETCHED INTO EPIC TREKS ACROSS TUNDRALIKE TRAILS OF ICE AND SNOW FOR THE WATERFORD POOL AND OTHERS ALONG THE EASTERN SEABOARD THIS MEANS EARLIER DEPARTURES LATER RETURNS AND MANY MORE HOURS INSIDE THE ODD COCOON OF THE COMMUTER VAN IT BECOMES AN ALTERNATE FAMILY SAYS MARGED HARRIS A LAWYER WITH THE ENVIRONMENTAL PROTECTION AGENCY LIKE OTHERS IN THE VAN SHE SAYS HER HECTIC JOB LEAVES SCANT TIME FOR SOCIALIZING AT WORK AND SHE IS SO WEARY WHEN SHE GETS HOME THAT SHE OFTEN DOES LITTLE EXCEPT COOK DINNER AND COLLAPSE IN FRONT OF THE TV SET THIS IS THE MOST EXCITING PART OF MY DAY SHE SAYS WATCHING THE TRAFFIC GRIND TO A HALT AFTER THIS WE ALL GO SIT IN OUR LITTLE OFFICES AND WAIT PATIENTLY TO GET BACK IN THE VAN THE WATERFORD POOL IS ONE OF THE NATION'S OLDEST DATING TO 1935 TODAY ITS MEMBERS ALL ARE PROFESSIONALS IN THEIR 40S AND 50S WHO WORK SIMILAR HOURS IN DOWNTOWN WASHINGTON BUT THEY HAVE BEEN THROWN TOGETHER BY CONVENIENCE RATHER THAN COMPATIBILITY AND RARELY SOCIALIZE OUTSIDE THE VAN THIS MAKES FOR A CURIOUS TWICEADAY ENCOUNTER THAT EXHIBITS ELEMENTS OF A GROUPTHERAPY SESSION AN EDITORIAL MEETING OF CAR AND DRIVER MAGAZINE AND A FOCUS GROUP CONVENED BY POLITICAL POLLSTERS RIGHT NOW WE'RE FOLLOWING THE NATIONAL PATTERN OF GENDER WARFARE AND MALE BASHING QUIPS MS CUTTER WHO WAS THE ONLY WOMAN IN THE POOL WHEN SHE BEGAN COMMUTING TO HER JOB AT THE NATIONAL ENDOWMENT FOR THE HUMANITIES IN 1978 BACK THEN MS CUTTER ENDURED SEXIST JIBES PARTICULARLY WHEN SHE TOOK HER TURN AT THE WHEEL I USED TO HAVE A DOCILE PERSONALITY BUT HAVING FIVE MEN TELL ME HOW TO DRIVE CHANGED THAT SHE SAYS JOINED NOW BY TWO OTHER WOMEN MS CUTTER GIVES AS GOOD AS SHE GETS ON A RECENT MORNING AS DRIVER ROBERT CHAMBERLIN SWERVES FROM LANE TO LANE IN A FUTILE ATTEMPT TO SKIRT STALLED TRAFFIC MS CUTTER GRUMBLES HERE WE GO AGAIN THE CONSTANT MOTION SCHOOL OF DRIVING MEN WILL GO MILES OUT OF THE WAY TO AVOID STOPPING FOR EVEN ONE MINUTE POOL MEMBERS ALSO SPAR GENIALLY OVER THE CAR HEAT PANTS INSULATE BETTER THAN SKIRTS OVER WHETHER TO LISTEN TO MUSIC OR NEWS ON THE RADIO AND OVER SUITABLE CONVERSATION THE WOMEN GRIPE ABOUT OFFCOLOR JOKES THE MEN ABOUT ENDLESS TALK OF GARDENING THEN THERE ARE DEBATES OVER NAVIGATION SUCH AS WHETHER TO TAKE THE DULLES GAMBIT A DETOUR TO DULLES AIRPORT TO PICK UP THE UNCROWDED LANES RESERVED FOR AIRPORT TRAFFIC TO WASHINGTON TO REGULATE THIS AND OTHER TIFFS THERE ARE FIRM RULES AND RITUALS MEMBERS PAY 135 A MONTH TOWARD THE VAN'S UPKEEP AND THEY ROTATE TURNS AT THE WHEEL THE DRIVER DETERMINES THE HEAT THE RADIO STATION AND THE ROUTE THEN ON THE NEXT RIDE THE DRIVER MOVES TO THE PASSENGER SEAT AND FEEDS COINS TO THE NEW DRIVER AT TOLL BOOTHS FOR YEARS TARDY PASSENGERS HAD TO BUY DRINKS FOR THE OTHERS ON FRIDAY WHEN THE POOL ENJOYED BEER AND PRETZELS ON THE DRIVE HOME BUT HERE TOO THE POOL REFLECTS BROADER SOCIAL TRENDS EVERYONE WENT ON DIETS IN THE '80S SO WE STOPPED THAT SAYS MS HARRIS THE EPA LAWYER NOW IT'S THE '90S WE'VE ALL FALLEN OFF OUR DIETS AND WE'RE GOING BACK TO BEER AND PRETZELS THE POOL'S PERSONALITY ALSO CHANGES AS MEMBERS COME AND GO DUE TO CAREER SHIFTS MS CUTTER'S HUSBAND BOWMAN CUTTER A WHITE HOUSE ECONOMIC ADVISER LEFT THE POOL AND LATER TRAVELED WITH ANOTHER FORMER POOL MEMBER DOUGLASS LEA THEY SPENT THEIR 5 AM DRIVES PLOTTING A TONGUEINCHEEK BOOK FOR COMMUTERS TENTATIVELY TITLED COMMUTERS DO IT TWICE A DAY ITS TIPS INCLUDE VIDEOTAPING DRIVES TO SHARE WITH RARELY SEEN SPOUSES CULTIVATING A ZENLIKE APPRECIATION OF GRIDLOCK AND LOBBYING TO MAKE COMMUTING AN OLYMPIC SPORT COMMUTING IS LIKE TWOMAN LUGE YOU GET VERY CLOSE TO EACH OTHER DEADPANS MR LEA A WRITER AND UNIVERSITY PROFESSOR AS TO WHY THE BOOK HASN'T YET BEEN WRITTEN HE SAYS WE'RE COMMUTING TOO MUCH PARTICULARLY THIS WINTER NORMALLY THE DRIVE FROM WATERFORD A VILLAGE OF 250 TAKES 75 MINUTES IN RECENT MONTHS IT SOMETIMES HAS TAKEN DOUBLE THAT EVEN ON CLEAR DAYS THE TRAFFIC SEEMS UNUSUALLY SWOLLEN A TREND THAT PROVIDES FODDER FOR ENDLESS VANPOOL DEBATE SOME SUCH AS MR CHAMBERLIN A FEDERAL RESERVE ANALYST SEE THE CLOTTED ROADS AS SIGN OF AN ECONOMIC RECOVERY THOSE WITH A SCIENTIFIC BENT THERE ARE THREE EPA WORKERS IN THE POOL BLAME WHAT THEY CALL THE SOLAR BUBBLE AT CERTAIN TIMES OF THE YEAR THE RISING SUN BLINDS EASTBOUND DRIVERS FORCING THE TRAFFIC TO SLOW SEASONAL CHANGES ALSO INFLUENCE VANPOOL BEHAVIOR MOST SLEEP MORE IN WINTER HIBERNATING LIKE BEARS THROUGH THE DARK DRIVES EVEN WHEN VISIBLE THE SCENERY PROMPTS SLEEP IT'S JUST EYEWASH MR CHAMBERLIN SAYS OF THE STRIP MALLS AND HOUSING TRACTS THAT CLUTTER SUBURBAN VIRGINIA HIGHWAY 66 MAY HAVE ROMANTIC ECHOES FOR ROCKANDROLL FANS BUT FOR THOSE WHO CRAWL ALONG IT EVERY DAY IT'S A DRABLY FAMILIAR ROUTE NEIL HUGHES A PROJECT MANAGER WITH THE WORLD BANK IS THE ONLY WORKING COMMUTER IN WINTER HE CLIPS A TINY LAMP TO HIS BREAST POCKET SO HE CAN READ DENSE REPORTS IN THE DARK BUT MOST OF THE OTHERS DEVOTE THE RIDE TO CHAT ABOUT EVERYTHING EXCEPT WORK ON TWO RECENT DAYS THE TALK LURCHED FROM THE WEATHER TO WHITEWATER FROM TONYA HARDING TO UFOS FROM WORD GAMES TO WORRIES ABOUT CHILDREN'S CAREERS BEFORE TELLING ME ANYTHING PRIVATE MY KIDS WILL INSIST PLEASE DON'T TELL THIS TO THE VAN POOL' MS HARRIS SAYS OF COURSE I ALWAYS DO THE GROUP ALSO HAS SHARED NEWS OF DIVORCES AND DEATHS IN THE FAMILY THEY HAVE HAD FIGHTS AND A FEW SPLITS ONE MAN LEFT AFTER A RIFT OVER WHETHER TO BUY GAS AT A STATION SELLING PAPERS SUPPORTING RIGHTWINGER LYNDON LAROUCHE AND THEY HAVE CAUTIOUSLY WELCOMED NEWCOMERS I WOULDN'T CALL IT A HAZING BUT I DID GO THROUGH AN INFORMAL TRIAL PERIOD SAYS MR HUGHES THE NEWEST RECRUIT WHO JOINED IN 1990 HE QUICKLY PROVED HIS METTLE AS A STEADY DRIVER AND RIDER BUT NOT EVERYONE STICKS SEVERAL MEMBERS' CHILDREN HAVE TRIED OUT DURING SUMMER JOBS BUT DROPPED OUT THE YOUNG LACK STAMINA QUIPS MR CHAMBERLIN A 20YEAR VETERAN OF THE VAN AND A SON OF THE POOL'S FOUNDER AT 810 AM AS THE VAN CROSSES THE POTOMAC INTO WASHINGTON HALF AN HOUR BEHIND SCHEDULE THE BANTER THINS POCKET MIRRORS COME OUT TIE KNOTS ARE TIGHTENED AND ONE BY ONE PASSENGERS CLIMB OUT BESIDE GRAY BUILDINGS WEARING THE SLIGHTLY TENSE AND ALREADY TIRED EXPRESSIONS OF DESK WORKERS FACING ANOTHER DAY OF INBASKETS VOICE MAIL AND INTEROFFICE MEMOS THEY WILL REASSEMBLE AT 530 FOR THE RETURN DRIVE MS CUTTER CONFESSES THAT THIS WINTER HAS CAUSED HER TO CONTEMPLATE A CHANGE OF CAREER THAT WOULD ALLOW HER TO WORK FROM HOME BUT THE URGE PASSES IF I STOPPED GOING TO WASHINGTON I'D FEEL BEREFT SHE SAYS I'D WONDER WHAT ALL THE OTHERS WERE TALKING ABOUT 9402280070 940228 BLOCKBUSTER IS APPROACHED ABOUT ALLIANCE BY LAURA LANDRO AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC HAS MADE AN OVERTURE TO BLOCKBUSTER ENTERTAINMENT CORP ABOUT A POSSIBLE INVESTMENT IN BLOCKBUSTER OR AN ALLIANCE WITH IT IF BLOCKBUSTER'S PROPOSED ACQUISITION BY VIACOM INC ISN'T COMPLETED ACCORDING TO PEOPLE ON WALL STREET IT COULDN'T BE DETERMINED HOW SERIOUS JOHN MALONE TCI'S CHAIRMAN IS ABOUT WORKING WITH BLOCKBUSTER ESPECIALLY IN LIGHT OF LAST WEEK'S COLLAPSE OF THE PROPOSED ACQUISITION OF TCI BY BELL ATLANTIC CORP AS THE COLLAPSE OF THAT TRANSACTION ILLUSTRATED MR MALONE HAS A PENCHANT FOR MAKING DEALS THAT MAY COME UNRAVELED OR HAVE TO BE RENEGOTIATED BUT EVEN THE POSSIBILITY OF HIS ENTRY INTO THE BLOCKBUSTERVIACOM SITUATION INCREASES THE UNCERTAINTY SURROUNDING THAT DEAL VIACOM A CABLETELEVISION PROGRAMMER NEGOTIATED A DEAL ORIGINALLY VALUED AT 84 BILLION TO ACQUIRE BLOCKBUSTER THE VIDEORENTAL CHAIN IN JANUARY AS A WAY OF FINANCING A HIGHER BID FOR PARAMOUNT COMMUNICATIONS INC BUT A STEEP DECLINE IN VIACOM'S STOCK PRICE SINCE IT WON THE BIDDING FOR PARAMOUNT ON FEB 15 HAS RAISED QUESTIONS ABOUT WHETHER BLOCKBUSTER SHAREHOLDERS MAY OVERTURN THE TAKEOVER BY VIACOM IF THE STOCK DOESN'T REBOUND THE SHAREHOLDER VOTE IS SCHEDULED FOR MAY VIACOM STOCK ALREADY HAS BEGUN TO BOUNCE BACK WITH ITS CLASS B NONVOTING SHARES RISING 2 TO 27 IN COMPOSITE TRADING FRIDAY ON THE AMERICAN STOCK EXCHANGE WAYNE HUIZENGA BLOCKBUSTER'S CHAIRMAN HAS AGREED TO VOTE HIS SHARES IN FAVOR OF THE VIACOM DEAL IN A GROUP OF HOLDERS TOTALING 23 OF BLOCKBUSTER STOCK BUT IF BLOCKBUSTER'S BOARD DOESN'T RECOMMEND THE DEAL BEFORE THE SHAREHOLDER VOTE THEN A TWOTHIRDS SHAREHOLDER VOTE MAY BE NEEDED FOR APPROVAL BOTH MESSRS MALONE AND HUIZENGA MIGHT HAVE ULTERIOR MOTIVES IN HOLDING TALKS ABOUT DOING BUSINESS TOGETHER MR HUIZENGA COULD USE ANY INTEREST BY MR MALONE IN BUYING ALL OR PART OF BLOCKBUSTER TO TRY TO OBTAIN SWEETENED TERMS FROM SUMNER REDSTONE VIACOM'S CHAIRMAN FOR THE VIACOMBLOCKBUSTER ACQUISITION AND MR MALONE MAY WISH TO MAKE TROUBLE FOR MR REDSTONE WHO BROUGHT A MASSIVE ANTITRUST SUIT AGAINST MR MALONE'S CABLE EMPIRE AT THE HEIGHT OF THE PARAMOUNT BATTLE DURING WHICH TCI INITIALLY BACKED VIACOM'S RIVAL THEN QVC NETWORK INC TCI ALREADY HAS BEEN REPORTED IN TALKS TO BUY AN INTEREST IN ANOTHER HOLLYWOOD STUDIO SUCH AS UNIVERSAL OR COLUMBIA WHICH ARE BOTH OWNED BY JAPANESE COMPANIES THAT MAY BE WILLING TO SELL A STAKE JOHNNIE L ROBERTS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9402280069 940228 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9402280068 940228 LEISURE & ARTS TELEVISION APOCALYPSE NOW AND LATER BY ROBERT GOLDBERG I THINK IT WAS PRINCE WHO SAID TWO THOUSANDZEROZERO PARTY OVER WHOOPS OUT OF TIME JUST SIX YEARS AWAY FROM THE BIG 2000 AND ALREADY EVERYONE'S A LITTLE NERVOUS PHOTO EDITORS ARE SCURRYING AROUND TRYING TO LINE UP THE IMAGES FOR THAT SPECIAL YEAREND ISSUE GREAT MOMENTS OF THE MILLENNIUM IN PICTURES THE MAGNA CARTA THE BLACK DEATH THE FRENCH REVOLUTION CHUBBY CHECKER INVENTS THE TWIST IF ANCIENT PROPHECIES NBC TUESDAY 810 PM EST IS CORRECT THE WHOLE THING IS MOOT BECAUSE WE'LL ALL BE CHEWING DUST BY THEN ANYWAY IF YOU REVEL IN DOOMSDAY MILLENARIANISM AND STRANGE INEXPLICABLE COINCIDENCES IF YOU BELIEVE THAT THE VIRGIN MARY MAY HAVE VISITED YOUR TOOLBOX IF THE THOUGHT THAT YOUR BIRTHDAY DIVIDED BY TWO EQUALS 666 SENDS CHILLS DOWN YOUR SPINE THEN THIS IS THE PROGRAM FOR YOU ONE OF THE GREAT ASSEMBLIES OF WACKOS MYSTICS ODDBALLS AND ASSORTED SPOOKY MUMBLERS ANCIENT PROPHECIES IS AS MUCH FUN AS YOU CAN HAVE CONTEMPLATING THE END OF HUMANITY RIGHT FROM THE START IT'S CLEAR THAT ANCIENT PROPHECIES IS A BREED OF PROGRAM APART COMING EQUIPPED AS IT DOES WITH A WHOLE PRIMER OF EXPLANATIONS ON HOW TO INTERPRET THE FOOTAGE YOU'LL SEE A COMPENDIUM OF PRECREDIT INSTRUCTIONS THAT INDICATES JUST HOW NERVOUS THIS TWOHOUR SPECIAL MAKES EVEN NBC WITH ITS PENCHANT FOR MAGICALLY EXPLODING GM TRUCKS THE FOLLOWING IS NOT A NEWS PROGRAM OR A DOCUMENTARY READS THE SCREEN AS THE MUSIC CHURNS OMINOUSLY THE PEOPLE APPEARING ON CAMERA ARE NOT NECESSARILY EXPERTS ALTHOUGH SIGNIFICANT OPPOSING VIEWPOINTS EXIST THEY ARE NOT INCLUDED SOME PREDICTIONS BY THE SAME SOURCES THOUGH NOT MENTIONED HAVE PROVEN INACCURATE IT IS NOT THE INTENT OF THE BROADCASTERS TO SUGGEST THAT ANY PROPHECIES ARE TRUE NOW LET'S SEE JUST HOW SENSATIONAL WE CAN GET THE PROGRAM STARTS AS ALL SUCH PROGRAMS MUST AT THE GREAT PYRAMIDS ON THE PLAINS OF GIZA PACING THROUGH HALLWAYS OF STONE OUR HOST DAVID MCCALLUM THE MAN FROM UNCLE LEANS SOLEMNLY TOWARD THE CAMERA AND INTONES EMBEDDED WITHIN THE PYRAMID'S INTERIOR PASSAGEWAYS AND CHAMBERS MAY BE A TIMELINE FOR TELLING THE FUTURE ACCORDING TO THIS CALENDAR OF STONE IF ONE WERE TO MEASURE THE LENGTH OF THE HALLS OF THE PYRAMID OF KHUFU WITH EACH INCH CORRESPONDING TO ONE YEAR THE ENTIRE HISTORY OF HUMANKIND WOULD BE MAPPED OUT WITH ALL THE NOTABLE EVENTS THE BIRTH OF CHRIST WORLD WAR II AND AT THE YEAR 2000 IN MAY THERE'S A HUGE GAPING PIT YOU CAN TAKE THAT ANY WAY YOU WANT NEXT STOP IS THE SOUTH OF FRANCE AND MICHEL DE NOTREDAME THE PROPHET NOSTRADAMUS PEERING INTO HIS BLACK MIRROR NOSTRADAMUS WAS ABLE TO PREDICT IN CODED QUATRAINS THAT MIGHT MEAN JUST ABOUT ANYTHING THE RISE OF NAPOLEAN THE TRIUMPH OF HITLER THE DEATH OF JFK AND THE LANDING ON THE MOON ALTHOUGH HE ALSO PICKED BUFFALO IN THE '93 SUPER BOWL ONE OTHER TIDBIT FROM NOSTRADAMUS AND HIS FOLLOWERS FEB 4 1962 IS THE BIRTHDATE OF THE ANTICHRIST WHO IS CURRENTLY LIVING AMONG US HE'LL MAKE HIMSELF KNOWN IN 1995 AND LEAD THE WORLD INTO A WAR OF UNSPEAKABLE HORRORS WHICH SHOULD WIPE OUT THE PLANET BY MAY OF THE YEAR 2000 YOU READ IT HERE FIRST A FEW PIT STOPS FOR EDGAR CAYCE AND ELIZABETH CLARE PROPHET BRING US UP TO PRESENTDAY AMERICA AND GORDONMICHAEL SCALLION WHO READS THE FUTURE NOT IN A BLACK MIRROR BUT ON THE MONITOR OF HIS WORD PROCESSOR STARING INTO THE SCREEN HE SEES VISIONS OF CATACLYSMIC DISASTERS SIMULTANEOUS TORNADOES EARTHQUAKES HURRICANES AND VOLCANIC ERUPTIONS ALL EXPLODING ACROSS THE PLANET IN THE YEARS LEADING UP TO THE MILLENNIUM MR SCALLION MUST HAVE THE MODEL WITH ONE OF THOSE NEW PENTIUM CHIPS BECAUSE MY OLD 386 MACHINE CAN BARELY RUN THE NEW WORDPERFECT STILL HE CLAIMS HE PREDICTED HURRICANE ANDREW AND THE ERUPTION OF MOUNT PINATUBO AND NOW HE'S GOT A MAP OF THE FUTURE US ONE HINT DON'T BUY ANY REAL ESTATE WEST OF NEBRASKA UNLESS YOU'VE GOT A SNORKEL THE GREAT THING ABOUT THIS WONDERFULLY CRACKED PROGRAM IS THAT IT TACKLES THE BIG QUESTIONS THE REALLY BIG QUESTIONS AND FOR DISASTER SPECIALISTS IT'S A THRILL A MINUTE LAYING OUT A CATALOG OF CALAMITIES DICTATORS NUCLEAR BOMBS PLAGUES ARMIES OF GENETICALLY MUTATED KILLERS EVEN THE GREENHOUSE EFFECT THE PROPHETS HERE FIND SIGNS EVERYWHERE THAT THE PLANET IS FALLING APART BUT NEVER IN THE SAME PLACES I DO LIKE THE WAY THE JUDGES SHAFTED TORVILL AND DEAN THE END OF THE WORLD HAS BEEN COMING FOR A LONG TIME BUT IF THE PORTENTOUS YEAR 2000 MAKES YOU NERVOUS AS IT DOES SO MANY OF THE VISIONARIES OF ANCIENT PROPHECIES I DO HAVE ONE PIECE OF ADVICE ON THE JEWISH CALENDAR IT WILL REGISTER AS A PLEASINGLY ASYMMETRICAL 5761 MEANWHILE THE SAD TRUTH IS THAT IT'S EASIER TO WATCH THE FINAL FIERY DAYS OF THE APOCALYPSE ON THE DELIGHTFULLY CATASTROPHIC ANCIENT PROPHECIES THAN TO SIT THROUGH 50 MINUTES OF REALITY FROM BOSNIA IN SARAJEVO THE LIVING AND THE DEAD PBS TUESDAY 910 PM EST CHECK LOCAL LISTINGS SCARIER THAN FUTURE GLOBAL DEVASTATION IS THIS INTIMATE LOOK AT THE WAY A HANDFUL OF ORDINARY PEOPLE A NEWLYWED COUPLE A TEENAGER A NURSE GO ABOUT THEIR DAYTODAY LIVES WHILE SNIPERS TRY TO PICK THEM OFF ON THE STREET RADOVAN TADIC'S DOCUMENTARY IS MUTED AND UNINFLECTED THERE'S NO HEAVY BREATHING HERE JUST THE NUMBING ROUTINE OF LIVES UNDER SIEGE IN WINTER WITH NO WATER NO HEAT ALTHOUGH IT OCCASIONALLY RAMBLES MR TADIC'S FILM IS A POWERFUL TESTAMENT TO THE WAY PEOPLE STRIVE FOR NORMALITY EVEN UNDER THE MOST DEHUMANIZING OF CIRCUMSTANCES THE WAY A WOMAN CROSSING AN OPEN INTERSECTION HOLDS UP HER POCKETBOOK IN FRONT OF HER HEAD AS IF THAT OFFERS PROTECTION FROM A FRAGMENTATION BULLET OR THE WAY A DOCTOR DELIVERS A BABY AS HE TRIES TO COMPLETE AN AMPUTATION CAN YOU SEE THE MIRACLE ASKS THE SURGEON IN THE MIDST OF ALL THIS DEATH A LIFE IS BORN LIFE DEMANDS THE RIGHT TO SURVIVE THIS HELL ON THE STREETS OF SARAJEVO APOCALYPSES COME AND GO 9402280067 940228 REVIEW & OUTLOOK EDITORIAL GREENSPAN TAKES THE GOLD THE SKY DIDN'T FALL MARKETS DIDN'T CRASH AND NO ONE IN CONGRESS OR THE MIT ECONOMICS DEPARTMENT TORE HIS GARMENTS NONE OF THIS HAPPENED LAST WEEK EVEN THOUGH FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ANNOUNCED THAT HE'S A GOLD BUG WE POINT TO THESE REMARKABLE NONEVENTS BECAUSE FOR YEARS EVEN DECADES NOW GOLD HAS BEEN THE FOURLETTER WORD OF GOVERNMENT FINANCE CENTRAL BANKS MAY STORE GOLD IN THEIR VAULTS AS RESERVES AND GOLD MAY BE THE ONE THING THAT NO ONE EVER THROWS AWAY BUT WE WERE NONETHELESS ALL SUPPOSED TO BELIEVE THIS WAS BEHAVIOR ROOTED IN 19THCENTURY SUPERSTITION SO MR GREENSPAN DESERVES CREDIT FOR THE COURAGE TO ADMIT THAT HE AND HIS FED MATES TAKE GOLD SERIOUSLY MORE PRECISELY MR GREENSPAN SAID THAT HE CONSIDERS THE PRICE OF GOLD TO BE A VERY GOOD INDICATOR OF FUTURE INFLATION AND THUS A USEFUL STAR BY WHICH TO GUIDE MONETARY POLICY THIS IS NEWS IT SUGGESTS THAT MR GREENSPAN IS SEARCHING FOR GUIDEPOSTS ROOTED IN SOMETHING REAL SOMETHING MORE THAN SEATOFTHEPANTS JUDGMENTS OR ECONOMIC THEORIES THIS SEARCH MIGHT IF IT'S PURSUED WITH SOME CONSISTENCY PRODUCE A NEW ERA OF ECONOMIC GROWTH WITH LOW INFLATION MOST AMERICANS DON'T REMEMBER IT BUT ZERO OR LOW INFLATION WAS THE NORM AS RECENTLY AS THE EARLY 1960S THE POSTWAR BRETTON WOODS SYSTEM OF FIXED EXCHANGE RATES THAT PREVAILED THEN PROVIDED MONETARY STABILITY AND HELPED THE WORLD ECONOMY GROW LIKE IT NEVER HAD BEFORE OR SINCE BRETTON WOODS WASN'T A PERFECT GOLD STANDARD BUT IT WAS A REASONABLE PROXY EVER SINCE IT COLLAPSED AMID US MISMANAGEMENT IN THE EARLY 1970S THE WORLD'S CENTRAL BANKERS HAVE BEEN SEARCHING FOR A NEW LODESTAR FIRST THE FED HEWED TO THE PHILLIPS CURVE WHICH POSTULATED A TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT BUT INSTEAD THIS PRODUCED ONLY MORE OF BOTH STAGFLATION PAUL VOLCKER STEPPED INTO THIS BREACH IN 1979 AND ANNOUNCED THE FED WOULD WATCH THE GROWTH OF THE MONEY SUPPLY M1 M2 AND SO ON BUT THE M'S TURNED OUT TO GIVE SO MANY FALSE SIGNALS THAT FIRST MR VOLCKER AND THEN CHAIRMAN GREENSPAN ABANDONED THEM IN FAVOR OF WHAT HAS SINCE BEEN MOSTLY AD HOC ALBEIT MAINLY SUCCESSFUL STEERING IN HIS TESTIMONY LAST WEEK MR GREENSPAN SEEMED TO BE TAKING A LARGE STEP TOWARD MORE PERMANENT MONETARY GUIDEPOSTS FIRST HE BURIED THE PHILLIPS CURVE WHAT APPEARS TO BE A TRADEOFF BETWEEN UNEMPLOYMENT AND INFLATION IS QUITE EPHEMERAL AND MISLEADING THEN HE DITCHED THE M'S THE SIGNALS THEY HAVE SENT IN RECENT YEARS HAVE BEEN EFFECTIVELY JAMMED BY STRUCTURAL CHANGES IN FINANCIAL MARKETS SO WHAT DOES HE STEER BY THE PRICE OF GOLD WHICH HAS BEEN ESPECIALLY SENSITIVE TO INFLATION CONCERNS SAID MR GREENSPAN ADDING THAT THE EXCHANGE RATE AND THE TERM STRUCTURE OF INTEREST RATES CAN GIVE IMPORTANT CLUES AS WELL IN SHORT THE FED IS NOW LOOKING TO PRICES IN THE REAL WORLD FOR GUIDANCE ESPECIALLY THOSE PRICES THAT TEND TO GIVE SIGNALS OF FUTURE INFLATION THIS SURPRISED NEW YORK REP JOHN LAFALCE WHO ASKED IF GOLD PRICES WEREN'T JUST A PRODUCT OF MOB PSYCHOLOGY I DON'T THINK SO MR GREENSPAN REPLIED GOLD IS A DIFFERENT TYPE OF COMMODITY BECAUSE VIRTUALLY ALL OF THE GOLD THAT HAS EVER BEEN PRODUCED STILL EXISTS AND THEREFORE CHANGES IN THE LEVEL OF PRODUCTION HAVE VERY LITTLE EFFECT ON THE ONGOING PRICE WHICH MEANS THAT IT'S VIRTUALLY WHOLLY A MONETARY DEMAND PHENOMENON SO IT'S A STORE OF VALUE MEASURE WHICH HAS SHOWN A FAIRLY CONSISTENT LEAD ON INFLATION EXPECTATIONS AND HAS BEEN OVER THE YEARS A REASONABLY GOOD INDICATOR HE CONTINUED IT DOES THIS BETTER THAN COMMODITY PRICES OR A LOT OF OTHER THINGS ALL OF THIS IS ESPECIALLY RELEVANT NOW BECAUSE SOME POLITICIANS ARE WONDERING WHY THE FED HAS BEGUN TO RAISE INTEREST RATES EVEN THOUGH THE CONSUMER PRICE INDEX SEEMS CONTAINED BUT AS MR GREENSPAN OBSERVED THE CPI IS LIKE LOOKING THROUGH THE REARVIEW MIRROR MEANWHILE THE PRICE OF GOLD HAD BEEN FLIRTING WITH 400 AN OUNCE BEFORE THE FED INTERESTRATE INCREASE ON FEB 3 SOME OTHER COMMODITY PRICES HAVE BEEN FLASHING EVEN STRONGER INFLATION SIGNALS MR GREENSPAN'S ENDORSEMENT OF GOLD COMES AT A MOMENT WHEN IT IS A MODERATE CHOICE OUR OWN WORRY HAS BEEN THAT MR GREENSPAN AND THE FED MAY HAVE WAITED TOO LONG TO RAISE RATES AND THUS AN INFLATION REBOUND COULD ALREADY BE INEVITABLE FOR 1995 AND 1996 OUR POINT LAST SPRING WAS THAT BY SHOWING DETERMINATION TO HEAD OFF INFLATION EARLY THE FED COULD PREVENT EVEN BIGGER INTERESTRATE INCREASES LATER WAYNE ANGELL WAS SAYING SOMETHING SIMILAR INSIDE THE FED BEFORE HIS TERM AS A GOVERNOR EXPIRED EARLIER THIS MONTH IN ANY EVENT MR GREENSPAN'S CANDOR LAST WEEK HAS AT LEAST GIVEN ALL OF US A NEW STANDARD BY WHICH TO JUDGE FED PERFORMANCE IN THE FUTURE WE'LL BE WATCHING 9402280066 940228 CONTINENTAL AIR TO SHIFT WORKERS HOUSTON CONTINENTAL AIRLINES SAID IT WILL ADD 330 JOBS TO ITS CREW BASE IN THE PIEDMONT TRIAD AREA OF NORTH CAROLINA ON MAY 1 THE AIRLINE SAID PILOTS AND FLIGHT ATTENDANTS CURRENTLY ASSIGNED TO OTHER LOCATIONS WILL FILL THE POSITIONS AND WILL WORK ON THE BOEING 737 AND DC9 AIRCRAFT THAT THE COMPANY USES FOR ITS SHORTHAUL NOMEALS PEANUTS FLIGHTS THE ADDITIONAL JOBS INCREASE THE NUMBER OF EMPLOYEES IN THE AREA TO ABOUT 510 CONTINENTAL SAID COMPARED WITH 23 A YEAR AGO 9402280065 940228 BABY BELLS FOCUS ON REGIONAL STRATEGIES AGAIN AS BELL ATLANTICTCI DEAL FOLDS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BABY BELLS ARE GETTING BACK TO MINDING THEIR OWN BUSINESS NOW THAT THE MEGADEAL BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC HAS FIZZLED THE OTHER SIX REGIONAL BELL TELEPHONE COMPANIES HAD LOOKED ON WITH A MIX OF HORROR AND FASCINATION AS THEIR FORMER SIBLING SET OUT TO ACQUIRE THE CABLE GIANT COUPLED WITH TCI BELL ATLANTIC WOULD HAVE BEEN ABLE TO INVADE THEIR HOME TURFS ON A WIDE SCALE USING TCI CABLE SYSTEMS IN SOME 43 STATES TO OFFER RIVAL PHONE SERVICE AS WELL AS NEW INTERACTIVE SERVICES NOW THAT THE THREAT HAS EASED THE OTHER BABY BELLS ARE FOCUSING ON PURSUING SMALLERSCALE REGIONAL STRATEGIES PUTTING EXISTING PARTNERSHIPS TO WORK AND HUNTING FOR NEW CABLE PROPERTIES WHICH SHOULD BE CHEAPER NOW THAT FEDERAL REGULATORS HAVE CUT CABLE RATES AGAIN BELL ATLANTIC AND TCI SCUTTLED THEIR AUDACIOUS DEAL LAST WEEK AFTER FAILING TO REACH A FINAL PRICE THEY WERE RIVEN BY A CULTURE CLASH THE PHONE COMPANY'S DECLINING STOCK PRICE AND TCI'S CLOUDED OUTLOOK FOR CASH FLOW THE LESSON OF THE COLLAPSE DON'T LET HYPE RUN YOUR BUSINESS SAID WILLIAM F REDDERSEN A SENIOR VICE PRESIDENT OF BELLSOUTH CORP WHICH COVERS THE SOUTHEAST MR REDDERSEN SAID BELLSOUTH IS CLOSE TO FINALIZING THE COMPANY'S INTERACTIVE STRATEGY BUT DON'T LOOK FOR THE ATLANTABASED BELL TO BLARE OUT THE DETAILS IN THE WAY BELL ATLANTIC FAVORED WE'VE BEEN PREPARING THE NETWORK PLAN FOR INTERACTIVE SERVICES FOR A LONG TIME MR REDDERSEN SAID BUT WE SEE NO REASON WHY WE SHOULD TELL OUR COMPETITORS WHERE WE ARE GOING BELLSOUTH FACES THE MOST PRESSING ORDER OF BUSINESS SOON IT MUST DECIDE WHETHER TO PROCEED WITH A HALFBILLIONDOLLAR INVESTMENT IN BARRY DILLER'S QVC INC WHEN QVC WHICH OWNS HOMESHOPPING CHANNELS WAS TRYING TO BUY PARAMOUNT COMMUNICATIONS INC OUT FROM UNDER VIACOM INC BELLSOUTH HAD AGREED TO INVEST AS MUCH AS 15 BILLION TO BACK THE BID NOW THE BABY BELL MUST FIGURE OUT WHAT A 500 MILLION INVESTMENT IN QVC CAN REALLY BUY IN TERMS OF A VOICE IN MR DILLER'S AFFAIRS AND ASSURANCES OF HOW THE MONEY WOULD BE USED QVC HAS LOST THE BIDDING FOR PARAMOUNT AND IT LACKS THE PIPELINE INTO HOMES THAT A CABLE OPERATOR LIKE TCI HAS BELLSOUTH'S OPTION TO BECOME PARTNERS WITH QVC RUNS OUT IN SIX MONTHS THE PHONE COMPANY ALSO IS LOOKING AT A HOST OF OTHER PROGRAMMING DEALS WHEN BELL ATLANTIC'S 20 BILLIONPLUS BID TO ACQUIRE TCI WAS ANNOUNCED LAST OCTOBER IT BECAME THE YARDSTICK BY WHICH ALL OTHER INTERACTIVE PLANS WERE JUDGED IT MADE U S WEST INC'S 25 BILLION INVESTMENT IN TIME WARNER INC'S ENTERTAINMENT UNIT LOOK ALMOST PALTRY BY COMPARISON AMERITECH CORP WAS DEEMED SHORTSIGHTED FOR A LACK OF INTEREST IN VENTURING BEYOND ITS MIDWESTERN REGION NYNEX CORP'S MOVE TO INVEST 12 BILLION IN VIACOM ONCE DEEMED A DARING MOVE IN VIACOM'S FIGHT TO BUY PARAMOUNT SUDDENLY LOOKED UNINSPIRED THAT ALL CHANGED LAST WEEK AND NOW THE PERCEPTION THAT THE OTHER BABY BELLS' INTERACTIVE STRATEGIES SOMEHOW WEREN'T GOOD ENOUGH AGGRESSIVE ENOUGH OR SMART ENOUGH HAS EVAPORATED SITTING PRETTIEST PERHAPS IS U S WEST THE DENVERBASED BABY BELL PURSUED A PARTNERSHIP WITH TIME WARNER RATHER THAN A MASSIVE MERGER INVESTING 25 BILLION FOR A 25 STAKE IN ITS ENTERTAINMENT UNIT NOW INDUSTRY EXPERTS SAY THAT APPROACH COULD BECOME A MODEL FOR OTHER TELEPHONECABLE VENTURES U S WEST IS LOOKING SMARTER THAN EVER SAYS ANDREI JEZIERSKI OF BOOZALLEN & HAMILTON INC AFTER THE FAILURE OF THE BELL ATLANTICTCI DEAL LAST WEEK U S WEST'S CHIEF EXECUTIVE OFFICER RICHARD MCCORMICK WAS INUNDATED WITH INTERVIEW REQUESTS PROMPTING HIM TO QUIP THAT HE IS NOW BACK TO BEING THE MULTIMEDIA DARLING SAID ONE EXECUTIVE IN APRIL U S WEST AND TIME WARNER WILL START A MUCHWATCHED TRIAL OF NEW INTERACTIVE SERVICES IN ORLANDO FLA THEY ARE ALSO SAID TO BE INTERESTED IN BUYING CABLEVISION SYSTEMS CORP WHOSE LONG ISLAND CABLE PROPERTIES WOULD MESH WELL WITH TIME WARNER'S NEW YORK SYSTEMS THE ULTIMATE GOAL TO OFFER U S WEST'S PHONE SERVICES ALONG CABLE LINES IN THE NATION'S MOST LUCRATIVE BUSINESS MARKET INSIDE ITS 14STATE REGION U S WEST PLANS TO BUILD NEW MULTIMEDIA NETWORKS IN 20 CITIES OVER THE NEXT FIVE YEARS STARTING WITH A 750 MILLION EFFORT IN FOUR MARKETS FOR NYNEX THE NEXT MOVE WILL BE TO GET TANGIBLE BENEFITS OUT OF ITS ALLIANCE WITH VIACOM NOW THAT THE PARAMOUNT FIGHT HAS BEEN WON IT HAS AN EXCLUSIVE WINDOW OF ONE YEAR OR MORE IN WHICH TO NEGOTIATE FOR THE RIGHT TO FASHION NEW INTERACTIVE FEATURES AND PHONE SERVICES FOR VIACOM CABLE SYSTEMS IT ALSO MUST LOOK FOR WAYS TO TAP INTO THE PROGRAMMING ASSETS OF PARAMOUNT WHICH PRODUCES AN ARRAY OF PRIMETIME TV FARE AND HAS A STOREHOUSE OF OLD FILMS AND TV SERIES NYNEX ALSO HAS SET PLANS TO BUILD INTERACTIVE NETWORKS ACROSS THE NORTHEAST PROVIDING IT GETS SOME LEEWAY WITH REGULATORS BUT IT HASN'T YET SPECIFIED WHEN IT WILL WIRE THE NEW YORK MARKET WHERE NYNEX FACES THE BIGGEST THREAT FROM OTHER BABY BELLS PARTICULARLY U S WEST AMERITECH AND PACIFIC TELESIS GROUP HAD BEEN DISMISSED AS ALSORANS FOR THEIR LACK OF BIG STRATEGIC PARTNERS AND THEIR STAYATHOME STRATEGIES NOW THEY SEEM A LITTLE WISER TO SOME INDUSTRY ANALYSTS PACTEL HAS ANNOUNCED A 16 BILLION SEVENYEAR BLUEPRINT FOR WIRING THE CALIFORNIA MARKET AMERITECH BASED IN CHICAGO AND SERVING THE MIDWEST ALSO HAS PLANS FOR INTERACTIVE SERVICES IN ITS OWN REGION AND HAS BEGUN A NEW PUSH FOR THE RIGHT TO ENTER THE LONGDISTANCE MARKET AS WELL SOUTHWESTERN BELL CORP SAN ANTONIO IS FORMING A 49 BILLION PARTNERSHIP WITH COX ENTERPRISES INC THAT WILL EXPLOIT CABLE TELEPHONE AND INTERACTIVE OPPORTUNITIES IN EACH OTHER'S MARKETS ONE LIKELY TARGET IS COX'S HOME BASE OF ATLANTA THE BACKYARD OF BELLSOUTH BELL ATLANTIC MEANWHILE IS REFOCUSING ON BUILDING ITS INREGION NETWORK WIRING 12 MILLION HOMES BY THE END OF NEXT YEAR JAMES CULLEN PRESIDENT SAID PHILADELPHIABASED BELL ATLANTIC WILL GO BACK TO THE DRAWING BOARD TODAY TO BEGIN MAPPING OUT A NEW INTERACTIVE STRATEGY OUTSIDE OF ITS SERVICE TERRITORY INSTEAD OF TRYING TO LINK UP WITH ANOTHER BIG ALLY BELL ATLANTIC MAY SEEK INDIVIDUAL CABLE PARTNERS ON A MARKETBYMARKET BASIS AN APPROACH THAT WILL BE FAR SLOWER THAT PATCHWORK APPROACH INITIALLY ESCHEWED BY BELL ATLANTIC MIGHT BE NECESSARY TO TURN THE INTERACTIVE ERA INTO REALITY INDEED SOME OBSERVERS SAY THE MOST IMPORTANT LESSON OF THE BELL ATLANTIC DEBACLE MAY BE THAT BIG AND BOLD ISN'T NECESSARILY BETTER AT LEAST WHEN IT COMES TO FORGING INTERACTIVE PARTNERSHIPS THERE ARE MARKET FORCES OUT THERE THAT NO AMOUNT OF CEO CHEMISTRY CAN FIX SAID BOOZALLEN'S MR JEZIERSKI IT MIGHT BE TEMPTING TO TRY TO GET TOGETHER TWO VISIONARIES FROM TWO COMPANIES WHO SEEM TO KNOW SOMETHING YOU DON'T BUT SOMETIMES THAT JUST ISN'T ENOUGH 9402280064 940228 WHO'S NEWS ARI NETWORK SERVICES INC ARI NETWORK SERVICES INC MILWAUKEE THE COMMUNICATIONSTECHNOLOGY CONCERN NAMED JAMES W EYSTER PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE TODAY MR EYSTER 50 YEARS OLD JOINS THE COMPANY AFTER SERVING AS EXECUTIVE VICE PRESIDENT OF M&I DATA SERVICES INC A SOFTWARE DEVELOPER HE SUCCEEDS EDWARD D MARKHAM WHOSE EMPLOYMENT WITH ARI ENDED FRIDAY ACCORDING TO A WEEKEND RELEASE MR MARKHAM AND COMPANY OFFICIALS COULD NOT BE REACHED FOR COMMENT ARI HAD 1994 FISCAL FIRSTQUARTER LOSSES OF 12 MILLION OR 11 CENTS A SHARE ON REVENUE OF 16 MILLION 9402280063 940228 CREDIT RATINGS HOME INSURANCE GETS AN UPGRADE IN RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE INSURANCE FINANCIALSTRENGTH RATINGS OF THE SIX MEMBERS OF HOME INSURANCE GROUP'S PROPERTY/CASUALTY INTERCOMPANY POOL TO SINGLEBAA1 FROM SINGLEBAA2 THE RATINGS HAVE BEEN ON REVIEW FOR POSSIBLE UPGRADE SINCE NOVEMBER WHEN THE GROUP'S HOLDING COMPANY HOME HOLDINGS INC SAID IT PLANNED TO RECAPITALIZE AND REDUCE LEVERAGE MOODY'S SAID THE RATING UPGRADES REFLECT AMONG OTHER THINGS THE SUCCESSFUL COMPLETION OF THE RECAPITALIZATION A STRENGTHENED LOSSRESERVE POSITION AND CONTINUED SUPPORT FROM HOME'S ULTIMATE PARENT COMPANY SWEDENBASED TRYGGHANSA SPP HOLDING AB 9402280062 940228 BRIDGESTONE'S PROFIT FELL 53 LAST YEAR JAPAN ECONOMY CITED SPECIAL TO THE WALL STREET JOURNAL TOKYO BRIDGESTONE CORP REPORTED ITS CONSOLIDATED PRETAX PROFIT FOR 1993 TUMBLED 53 TO 3735 BILLION YEN 3552 MILLION CITING THE DOMESTIC ECONOMY THE AUTOMOBILETIRE MAKER REPORTED ITS 1993 UNCONSOLIDATED OR PARENTONLY PRETAX PROFIT PLUNGED 48 TO 3555 BILLION YEN FROM A YEAR EARLIER FOR 1994 THE COMPANY PREDICTS GROUP PRETAX PROFIT WILL TOTAL 50 BILLION YEN UP 34 FROM 1993 IT EXPECTS PARENT PRETAX PROFIT TO RISE 41 TO 37 BILLION YEN THIS YEAR BRIDGESTONE OFFICIALS SAID THE COMPANY EXPECTS TO HAVE AN OPERATING PROFIT OF ROUGHLY 52 BILLION YEN FOR 1994 DOWN ABOUT 25 BILLION YEN FROM 1993 ALTHOUGH THE COMPANY PLANS TO SAVE 16 BILLION YEN BY CUTTING COSTS AN EXPECTED INCREASE IN THE YEN'S VALUE AGAINST THE DOLLAR IS SEEN TRIMMING THE PROFIT BY 11 BILLION YEN A DROP IN SALES VOLUME ALSO IS SEEN KNOCKING 75 BILLION YEN OFF OPERATING PROFIT THE COMPANY ASSUMES THE US DOLLAR AT 103 YEN FOR 1994 DOWN FROM 112 YEN IN 1993 AND SHARPLY BELOW 127 YEN IN 1992 A ONEYEN DECLINE IN THE VALUE OF THE DOLLAR AGAINST THE YEN WOULD CAUSE THE PARENT COMPANY'S SALES TO FALL BY ROUGHLY 15 BILLION YEN BASED ON THE COMPANY'S 1994 FORECASTS ON THE BACK OF LOWER PROFIT BRIDGESTONE WILL SLASH ITS CAPITAL INVESTMENT TO 22 BILLION YEN FOR 1994 FROM 417 BILLION YEN IN 1993 OF THE TOTAL 1994 FIGURE 12 BILLION YEN WILL COVER THE TIREPRODUCTION SECTOR WHILE 25 BILLION YEN WILL PAY FOR PRODUCTPROCESSING FACILITIES INVESTMENT IN THE RESEARCHANDDEVELOPMENT SECTOR WILL SLIDE TO 55 BILLION YEN FROM 66 BILLION YEN VICE PRESIDENT ISAO IMAIZUMI SAID ITS US SUBSIDIARY BRIDGESTONE FIRESTONE INC POSTED ANNUAL PROFIT FOR THE FIRST TIME SINCE IT ACQUIRED US TIREMAKER FIRESTONE IN 1988 A RECOVERY IN THE US ECONOMY AS WELL AS THE COMPANY'S EFFORTS TO RATIONALIZE ITS OPERATIONS OVER THE PAST YEARS CONTRIBUTED TO THE IMPROVED EARNINGS HE SAID 9402280061 940228 CORPORATE FOCUS REUTERS PURSUES TRADING AREAS RAISING CONFLICT ISSUES BROKERS ANALYSTS SEE DANGER IN OFFERING BOTH NEWS AND EXCHANGE SERVICES BY KEVIN HELLIKER AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON AT A GATHERING OF TOP FINANCIAL ANALYSTS EARLIER THIS MONTH PETER JOB CHIEF EXECUTIVE OF REUTERS HOLDINGS PLC OFFERED AN APOLOGY WITH ALL HUMBLE RESPECT TO THOSE OF YOU WHO COME FROM FULLSERVICE BROKERS HE SAID THE COMPANY'S INSTINET UNIT IS DOING VERY WELL THE ANALYSTS NEEDED NO EXPLANATION INSTINET IS ONE OF SEVERAL ELECTRONICTRADING SERVICES HELPING REUTERS STEAL COMMISSIONS FROM BANKS BROKERAGE FIRMS AND STOCK EXCHANGES BUT CREDIT LYONNAIS EURO SECURITIES ANALYST KEITH SYKES HAD A QUESTION FOR THE CHIEF EXECUTIVE IS REUTERS GETTING TOO NEAR A CONFLICT OF INTEREST AFTER ALL BANKS BROKERAGE FIRMS AND STOCK EXCHANGES ARE BIG CUSTOMERS OF REUTERS'S TRADITIONAL PRODUCT FINANCIAL NEWS MR JOB'S QUICK DENIAL OF ANY CONFLICT FAILED TO CONVINCE EVERYONE REUTERS HAS TO BE CAREFUL SAYS ALASTAIR SMELLIE WHO FOLLOWS THE COMPANY FOR LEHMAN BROTHERS INTERNATIONAL LTD THEY'RE TREADING ON THE TOES OF THEIR CORE CUSTOMERS THIS VENERABLE NEWS AGENCY IS PRESSING FORWARD ON A NUMBER OF FRONTS ITS AGREEMENT LAST MONTH TO ACQUIRE FOR AN UNDISCLOSED PRICE CITICORP'S QUOTRON STOCKINFORMATION SYSTEM COULD BOOST ITS SHARE OF THAT MARKET IN THE US TO AROUND 30 FROM ONLY 3 POSSIBLY ENHANCING ITS ABILITY TO COMPETE AGAINST AMONG OTHER SERVICES DOW JONES TELERATE INC OWNED BY DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL BUT THE FASTESTGROWING DIVISION AT REUTERS HAS NOTHING TO DO WITH NEWS AND SOME OF ITS TRADITIONAL CUSTOMERS AREN'T THRILLED WITH REUTERS THROUGH UNITS SUCH AS INSTINET NOW DOUBLING AS A BROKER WE'RE EXTREMELY SCARED OF IT SAYS IAN MYERS CHAIRMAN OF THE UNITED KINGDOM DIVISION OF PAINEWEBBER INC A UNIT OF PAINEWEBBER GROUP INC REUTERS'S MOVE INTO ELECTRONIC BROKERING ALREADY HAS PRECIPITATED A BACKLASH LAST YEAR A DOZEN MOSTLY AMERICAN BANKS CONCERNED THAT THE COMPANY WAS QUICKLY MONOPOLIZING AUTOMATED FOREIGNEXCHANGE DEALING FORMED A CONSORTIUM TO CREATE A COMPETING SYSTEM AND SOME OF THE WORLD'S LARGEST STOCK EXCHANGES ARE TAKING MEASURES TO WIN BACK BUSINESS FROM INSTINET AND SIMILAR SYSTEMS MR JOB 52 YEARS OLD SAYS MOST BROKERS RECOGNIZE THAT HIS COMPANY'S BROKERING BUSINESS WITH REVENUE OF LESS THAN 250 MILLION 3713 MILLION OUT OF TOTAL REVENUE OF 187 BILLION IS TOO SMALL TO POSE A THREAT BUT A FORMER EXECUTIVE SAYS PRIVATELY REUTERS WANTS TO BE THE WORLD STOCK EXCHANGE AND REUTERS ITSELF SAYS IN A LETTER TO THE US SECURITIES AND EXCHANGE COMMISSION THAT ELECTRONIC BROKERS SUCH AS INSTINET COULD RENDER STOCK EXCHANGES OBSOLETE REUTERS IS FLOURISHING ONE OF ITS BIGGEST CHALLENGES LAST YEAR WAS HOW TO SPEND A RAPIDLY MOUNTING PILE OF PROFITS IT BOUGHT BACK 350 MILLION OF ITS STOCK AND WENT ON AN ACQUISITION BINGE ITS PRETAX PROFIT ROSE 15 IN 1993 TO 440 MILLION OR 72 PENCE A SHARE AND ANALYSTS SAY EARNINGS SHOULD CONTINUE GROWING AT THAT RATE FOR SEVERAL YEARS CERTAINLY THERE IS A PRECEDENT FOR REUTERS BEING REDEFINED BY ONE OF ITS FLEDGLING VENTURES IT WAS A NEWSGATHERING SERVICE WITH MAINLY DOMESTIC SUBSCRIBERS UNTIL 1973 WHEN THE WORLD'S FIXEDEXCHANGE RATE SYSTEM BROKE UP WITH CURRENCIES FLUCTUATING TRADERS SUDDENLY NEEDED UPTOTHESECOND INFORMATION ON PRICES AND REUTERS USED ITS ELECTRONIC NEWS NETWORK TO FILL THE VOID AS THE VOLUME OF FOREIGNEXCHANGE TRADES ACCELERATED PARTICULARLY IN THE LAST 10 YEARS REVENUE AT REUTERS SURGED MORE THAN SEVENFOLD FROM 1983 THROUGH LAST YEAR MEANWHILE ITS TRADITIONAL CUSTOMERS NEWSPAPERS MAGAZINES AND BROADCASTERS HAVE COME TO ACCOUNT FOR LESS THAN 10 OF REVENUE WILL ITS BROKERING BUSINESS SIMILARLY TRANSFORM REUTERS ALTHOUGH TINY IT IS CERTAINLY THE COMPANY'S FASTESTGROWING OPERATION THE LARGEST OF ITS THREE ELECTRONICTRADING SERVICES INSTINET WHICH DEALS IN EQUITIES GREW 97 LAST YEAR TO 120 MILLION FOLLOWING GROWTH OF 57 THE YEAR BEFORE THAT PACE IS EXPECTED TO CONTINUE USE OF REUTERS'S ELECTRONIC SYSTEM FOR TRADING CURRENCIES KNOWN AS DEALING 20002 INCREASED FIVEFOLD IN 1993 TO 1310 TERMINALS AND WHILE ITS ELECTRONIC FUTURES AND OPTIONS TRADING SERVICE CALLED GLOBEX HAS SHOWN SLOW GROWTH AMID A VARIETY OF PROBLEMS REUTERS WANTS TO KEEP THE SERVICE MOVING AHEAD MR JOB SAYS THE AMERICAN STOCK EXCHANGE HAS ASKED THE SEC TO CONSIDER REGULATING SERVICES SUCH AS INSTINET WHILE OFFICIALS OF FRANKFURT'S STOCK EXCHANGE HAVE ANNOUNCED A CAMPAIGN TO LOWER PRICES AND INCREASE EFFICIENCY EXPRESSLY TO DRAW BACK TRADE FROM INSTINET AND OTHER NEW COMPETITORS A GROUP OF AMSTERDAM STOCK EXCHANGE MEMBERS TRYING TO RECAPTURE BUSINESS HAVE ASKED OTHER MEMBERS TO STOP USING REUTERS SCREENS IN FOREIGNEXCHANGE MARKETS WHERE ONE REUTERS PRODUCT PROVIDES PRICE INFORMATION AND ANOTHER THE TECHNOLOGY WITH WHICH DEALERS EXECUTE TRADES THE INTRODUCTION OF YET ANOTHER PRODUCT DEALING 20002 HAS PROMPTED CONCERNS NOT ONLY ABOUT LOST COMMISSIONS BUT ALSO ABOUT A MONOPOLY CITING FEARS THAT REUTERS WOULD BEGIN SETTING THE PRICE AND TERMS OF FOREIGNEXCHANGE DEALING A GROUP OF MOSTLY AMERICAN BANKS DECIDED TO STOP USING THE 20002 SYSTEM AND TO CREATE THEIR OWN CALLED ELECTRONIC BROKING SYSTEM THERE IS ALSO A THIRD NEW SYSTEM CALLED MINEX AND OPERATED BY A GROUP OF JAPANESE BANKS ALONG WITH TELERATE WHAT WORRIES SOME OBSERVERS IS THE IDEA OF ONE COMPANY PROVIDING EVERYTHING FROM FINANCIAL ANALYSIS TO THE MEANS TO BUY AND SELL WILL USERS OF REUTERS BROKERAGE SERVICES GAIN ANY PRIVILEGED ACCESS TO REUTERS NEWS AS THEY CLIMB THE ESCALATOR TOWARD GREATER DOMINANCE OF THE INDUSTRY SAYS MR SYKES THE ANALYST THEY HEAD INTO ALL SORTS OF POTENTIAL CONFLICTS WITH THEIR CUSTOMERS MR JOB SAYS REUTERS TIRELESSLY PROTECTS THE INTERESTS OF ALL ITS CUSTOMERS YET ITS NEWS OPERATION SUGGESTS TO SOME OBSERVERS THAT THE LINES BETWEEN ITS DIVISIONS COULD BE MORE SHARPLY DEFINED ITS RECENT EXCURSION INTO PROGRAM PRODUCTION FOR SPECIFIC TELEVISION STATIONS HAS ANGERED SOME SUBSCRIBERS TO ITS NEWS SERVICE AND REUTERS NOW REQUIRES REGIONAL EDITORS TO REPORT TO BUSINESS MANAGERS AND IT ALSO ASKS ITS REPORTERS TO MEET REGULARLY WITH CUSTOMERS AREN'T ALL JOURNALISTS REQUIRED TO THINK MORE ABOUT REVENUE THESE DAYS SAYS MARK WOOD 41 REUTERS'S EDITORINCHIEF INDEED HE SAYS HE WAS PROMOTED TO THAT POSITION IN 1989 BECAUSE I FELT EDITORIAL NEEDED TO BECOME MUCH CLOSER TO THE REST OF THE COMPANY 9402280060 940228 WHO'S NEWS DIED NORMA L RAGIR 71 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHICAGOBASED SELFIX INC FRIDAY OF A HEART ATTACK 9402280059 940228 LETTERS TO THE EDITOR DON'T TAR INDUSTRY OVER ROGUE' AGENTS AS A 35YEAR VETERAN AGENT IN THE LIFE INSURANCE INDUSTRY I AM RESPONDING TO YOUR JAN 21 PAGEONE ARTICLE ON LIFE INSURERS BEING HELD LIABLE FOR ABUSES BY AGENTS THERE ARE ROGUE AGENTS WHO REPRESENT A TINY MINORITY OF CAREER AGENTS THEY ARE DIFFICULT TO IDENTIFY BY COMPANY MANAGEMENTS AGENCY MANAGERS AND EVEN FELLOW AGENTS BUT ONCE IDENTIFIED THEY SHOULD BE DEALT WITH SWIFTLY AND DECISIVELY BY MANAGEMENT OTHERWISE THE INDUSTRY SUFFERS FOR THE ACTS OF A FEW HOWEVER YOU THEN ATTACK THE SALE OF PERMANENT LIFE INSURANCE WHOLE LIFE AS THOUGH IT WERE IN THE SAME CLASS AS STEALING FROM A CLIENT HUNDREDS OF MY CLIENTS WHO OWN WHOLE LIFE HAVE THANKED ME TIME AND AGAIN FOR URGING THEM TO PURCHASE THIS TYPE OF COVERAGE YOU SEEM TO LACK FULL UNDERSTANDING OF THE PROPER USES OF PERMANENT LIFE INSURANCE YOU TAKE THE POSITION THAT ITS SALE IS SIMPLY COMMISSION ORIENTED WITH NO THOUGHT TO THE BEST LONGTERM INTERESTS OF THE CLIENT THOUSANDS OF PROFESSIONAL AGENTS WORK HARD EVERY DAY HELPING CLIENTS FACE UP TO THEIR NEEDS EXPLAINING COMPLEX MODERN LIFE INSURANCE CONTRACTS AND TRYING TO SUIT THOSE CONTRACTS TO THEIR NEEDS AS A LIFE INSURANCE AGENT WITH MORE THAN 30 YEARS IN SALES AND SALES MANAGEMENT I THINK IT'S TIME FOR A SERIOUS REVIEW OF SELLING PRACTICES IN OUR INDUSTRY ALTHOUGH INSTANCES OF FRAUD AS CITED IN YOUR ARTICLE ARE RELATIVELY RARE AN INDUSTRYWIDE COMPENSATION AND RECOGNITION SYSTEM EXISTS THAT TOO OFTEN RESULTS IN THE SALE OF HIGHPREMIUM INSURANCE PRODUCTS WHEN THE CONSUMERS' INTERESTS WOULD BE BETTER SERVED BY THE PURCHASE OF LOWPREMIUM AND LOWCOMMISSION TERM PRODUCTS FOR YEARS MANY COMPANIES ESPECIALLY THE LARGE MUTUALS HAVE CONFIGURED THEIR COMMISSION SCALES THE ULTIMATE INCENTIVE PROGRAM TO DISCOURAGE THE SALE OF ECONOMICAL TERM PROTECTION IN FAVOR OF HIGHCOMMISSION HIGHERPREMIUM CASHVALUE PRODUCTS GIVEN THE HUGE COMMISSION DIFFERENTIAL AMONG POLICIES PROVIDING EQUAL PROTECTION LIFE INSURANCE'S COMPLEXITY ARCANE LANGUAGE OF POLICY CONTRACTS AND THE EASE WITH WHICH COMPUTERS CRANK OUT PROPOSALS DRIPPING WITH APPARENT AUTHORITY IT IS VIRTUALLY INEVITABLE THAT THE SELLER'S AND BUYER'S INTEREST ARE DIVERGENT WHILE LIFE INSURANCE COMPANIES ARE JUSTIFIABLY PROUD OF THEIR PROMPT HONEST CLAIMS HANDLING AND LONG HISTORY OF FINANCIAL STABILITY THE CONSUMER DESERVES PROTECTION FROM THE HIGH PRESSURE SALE OF INAPPROPRIATE LIFE INSURANCE PRODUCTS 9402280057 940228 FARE COMBAT LEAN NIMBLE AIRLINES HEAD EAST TARGETING REGION'S PLUMP PRICES USAIR UNDER THREAT FIGHTS BACK WITH A BIG CUT PASSENGERS ARE WINNERS THE BATTLE FOR BALTIMORE BY MICHAEL J MCCARTHY AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL AN AIR WAR HAS BROKEN OUT ON THE EASTERN FRONT AFTER YEARS OF RELATIVE INSULATION FROM THE PITCHED AIRLINE RIVALRIES ELSEWHERE IN THE US THE EAST COAST IS FEELING THE BLITZKRIEG OF DRAMATIC FARE CUTS WHILE TRAVELERS ARE CHEERING THIS STRUCTURAL SHIFT IN THE COUNTRY'S LARGEST AIRTRAVEL MARKET THREATENS TO WREAK HAVOC ON HIGHCOST CARRIERS NOTABLY USAIR AND COULD TRIGGER A SHAKEOUT AMONG SOME OF THE LOWCOST ASPIRANTS MAKING STRAFING RUNS IN THE REGION THE BATTLE AMOUNTS TO MUCH MORE THAN A PASSING FARE WAR IT IS A STRATEGIC FIGHT BETWEEN TWO DIFFERENT KINDS OF AIRLINES LEAN NIMBLE CARRIERS OFFERING VALUE PRICING AND LARGE FULLSERVICE MAJORS CHARGING HIGHER FARES AND THE EAST COAST WHICH REPRESENTS 37 OF US AIR TRAVEL AND ENCOMPASSES MANY OF THE NATION'S IMPORTANT BUSINESS CITIES IS WELL WORTH FIGHTING FOR USAIR AND DELTA AIR LINES IN PARTICULAR ARE FACING A SHOWDOWN OVER THEIR HISTORICALLY PROFITABLE BREADANDBUTTER BUSINESS SALES PEOPLE PACKING SHUTTLE FLIGHTS BETWEEN BOSTON AND WASHINGTON EXECUTIVES FLYING TO PITTSBURGH FROM NEW YORK NORTHEASTERN FAMILIES SEEKING THE SUN IN ORLANDO LOWCOST AGGRESSORS SEE THE INCUMBENT CARRIERS AS VULNERABLE BUT ALSO BELIEVE THE VAST EAST COAST MARKET WILL YIELD MORE FRUIT IF FARES ARE SUBSTANTIALLY LOWERED AND THAT IS EXACTLY WHAT THEY ARE DOING IN LATE JANUARY CONTINENTAL AIRLINES ANNOUNCED PLANS TO EXPAND ITS LOWFARE CALITE FLIGHTS NOW OPERATING MOSTLY IN THE SOUTHEAST UP AND DOWN THE COAST STARTING NEXT WEEK TO DEFEND ITS TURF NORMALLY SOMNOLENT USAIR JOLTED THE INDUSTRY BY PREEMPTIVELY SLASHING TICKET PRICES AS MUCH AS 70 TO MANY COASTAL CITIES AND BY MAKING THE NEW FARES PERMANENT SOON AFTER SOUTHWEST AIRLINES A PARAGON OF LOWPRICE NOFRILLS FLYING SAID IT PLANNED TO BEEF UP ITS EAST COAST BEACHHEAD IN BALTIMORE ADDING SIX NEW GATES BY NEXT FALL TO ITS TWO ALREADY THERE AND AMERICA WEST ANOTHER LOWERCOST CARRIER ANNOUNCED IT WOULD MAKE ITS PHILADELPHIA DEBUT IN APRIL TO GUARD ITS GROUND DELTA ONE OF THE SLOWMOVING HIGHCOST MAJORS EXTENDED INDEFINITELY A PROGRAM OFFERING LOW FARES IN 12 SOUTHEASTERN CITIES BEGINNING TO NIP AT THE EDGES ARE AS MANY AS 28 STARTUP CARRIERS THAT HAVE FORMED IN THE PAST TWO YEARS TARGETING EASTERN CITIES STRETCHING FROM BOSTON TO MIAMI THE TIME WAS RIPE FOR THE EAST COAST HIGHFARE STRUCTURE TO CRUMBLE SAYS HAROLD SHENTON A VICE PRESIDENT OF AVMARK INC AN ARLINGTON VA CONSULTING FIRM BETWEEN 1982 AND 1992 FARES IN THE EASTERN US MORE THAN DOUBLED IN SHORTHAUL MARKETS HELPING DRIVE PASSENGER TRAFFIC DOWN 12 ACCORDING TO A STUDY BY ATX INC AN AIRLINEINPLANNING HEADED BY FORMER CONTINENTAL AND EASTERN AIRLINES CHIEF FRANK LORENZO BY CONTRAST THE WESTERN US POPULATED BY EXPANDING LOWCOST LINES SUCH AS SOUTHWEST SAW A 75 JUMP IN TRAFFIC OVER THE DECADE WITH FARES RISING BY ONLY 5 ATX WHICH STILL LACKS GOVERNMENT PERMISSION TO FLY HAS TARGETED THE EAST BECAUSE AS MR LORENZO DECLARED LAST YEAR IT'S SO OBVIOUS THE PUBLIC IS BEGGING FOR AN ALTERNATIVE PRODUCT TOM PARSONS PUBLISHER OF BEST FARES MAGAZINE SAYS NOBODY HAS REALLY CHALLENGED THE EAST COAST SINCE PEOPLEEXPRESS IN THE EARLY 1980S THAT NEWARK NJ CARRIER BOUGHT ITS WAY INTO EASTERN MARKETS BY CHARGING 30 TO 90 LESS THAN COMPETITORS IT LATER FAILED A VICTIM OF TOORAPID EXPANSION AND AN ILLFATED MOVE OVERSEAS THE AIRLINES' BATTLE FOR THE EAST WILL BE A WINDFALL FOR LONGSUFFERING PASSENGERS AND IT PROBABLY WILL STIR MORE DISCRETIONARY FLYING AND LURE SOME TRAVELERS FROM CARS AND TRAINS SOME AVIATION CONSULTANTS THINK AIR TRAFFIC COULD JUMP 50 IN SOME CITIES AND WHY NOT UNTIL LAST MONTH A ROUNDTRIP FLIGHT FROM PROVIDENCE RI TO ORLANDO FLA COST 986 WHILE ONE FROM BOSTON TO CHARLOTTE NC COST 808 TODAY THE FIRST COSTS 458 AND THE OTHER 598 A ROUND TRIP BETWEEN NEWARK AND GREENVILLE/SPARTANBURG NC PRICED AT 682 BEFORE NOW IS 298 UNLIKE HEAVILY RESTRICTED PROMOTIONAL FARES OF THE PAST THESE ARE REFUNDABLE TICKETS REQUIRING NO ADVANCE PURCHASE BUT SOME AIRLINE SPECIALISTS WORRY THAT THESE UNRESTRICTED LOW FARES COULD PROVOKE A FINANCIAL DEBACLE SIMILAR TO THE DISASTROUS SUMMER OF 1992 THAT WAS WHEN AMR CORP'S AMERICAN AIRLINES LAUNCHED A SOCALLED VALUEPRICING PROGRAM THAT SPARKED A 50OFF FARE WAR NATIONWIDE THE US AIRLINE INDUSTRY HAD A 25 BILLION OPERATING LOSS THAT YEAR USAIR'S CUTS COULD BE THE SON OF VALUE PRICING WARNS ROBERT HARRELL VICE PRESIDENT OF AMERICAN EXPRESS CO'S AIRFARE MANAGEMENT DIVISION USAIR CUT BUSINESS FARES UP TO 50 AND LEISURE FARES UP TO 70 ON ROUGHLY A QUARTER OF ITS ROUTES SOME NEWCOMERS SUCH AS KIWI INTERNATIONAL AIR LINES OF NEWARK AND VALUJET AIRLINES OF ATLANTA COULD GET HURT DESPITE THEIR LOWER COSTS SOME OF THE SMALLER AIRLINES WON'T SURVIVE PREDICTS AVMARK'S MR SHENTON AS FARES DECREASE PEOPLE WON'T NEED TO GO OUT OF THEIR WAY TO GET LOW FARES FROM THE SMALLER CARRIERS BUT WITH COSTS MORE THAN 50 HIGHER THAN CONTINENTAL'S AND 60 HIGHER THAN SOUTHWEST'S USAIR COULD BE THE FIRST MAJOR AIRLINE TO SUFFER THE EFFECTS OF SHARPLY LOWER REVENUE AIRLINE SPECIALISTS PREDICT SOME OF THE HIGHER COSTS ARE UNAVOIDABLE FOR THE AIRLINE A UNIT OF USAIR GROUP INC OF ARLINGTON VA ITS DENSE NETWORKS IN THE NORTHEAST AND FLORIDA CONSIST MOSTLY OF SHORT ROUTES TRADITIONALLY MORE EXPENSIVE TO OPERATE THE NORTHEAST ALSO HAS HIGHER LABOR COSTS SOMETIMES BRUTAL WINTERS AND NORMALLY CONGESTED AIRPORTS FOR NOW USAIR'S MAJOR COSTCUTTING DRIVE IS ITS PROJECT HIGH GROUND A PLAN BEGUN LAST MONTH TO SPEED THE WAY IT SERVICES AND TURNS AROUND PLANES AT AIRPORTS BORROWING A PAGE FROM SOUTHWEST USAIR IS TRYING TO HALVE THE TIME ITS PLANES SPEND ON THE GROUND INSTEAD OF WAITING FOR ALL THE PASSENGERS TO LEAVE BEFORE CLEANING A CABIN FOR INSTANCE USAIR'S CLEANING CREWS HAVE BEGUN ENTERING THE REAR OF THE PLANE PICKING UP BEHIND PEOPLE AS THEY EXIT OUT THE FRONT USAIR EXPECTS TO TURN PLANES AROUND FAST ENOUGH TO GENERATE AT LEAST ONE MORE DAILY DEPARTURE PER PLANE IN THE 18 MARKETS WHERE THE PROJECT IS UNDER WAY USAIR FIGURES IT COULD SELL 3500 MORE SEATS AT NO EXTRA OPERATING COST INDUSTRY SPECIALISTS HOWEVER BELIEVE USAIR CAN ACHIEVE ONLY LIMITED SUCCESS WITH THE PROGRAM WHAT THE AIRLINE REALLY NEEDS THEY CONTEND IS AN OVERHAUL OF ITS ENTIRE COST STRUCTURE STARTING WITH LABOR THE KIND OF FLEXIBILITY USAIR NEEDS ISN'T IN EXISTING LABOR CONTRACTS SAYS ROSE ANN TORTORA AN ANALYST WITH DONALDSON LUFKIN & JENRETTE IF YOU'VE GOT TO REMODEL THE HOUSE YOU NEED THE COOPERATION OF ALL THE RESIDENTS USAIR HAD A SHOT AT A MAJOR REMODELING AND BLEW IT IN 1992 IT PERSUADED ITS UNIONS TO MAKE WAGE CONCESSIONS BUT THE AIRLINE STRUCK A ONEYEARONLY DEAL AND SAVED 170 MILLION WAGES HAVE SINCE SNAPPED BACK AND THE UNIONS NOW ARE SITTING ATOP MULTIYEAR NOFURLOUGH GUARANTEES AN OBSTACLE TO A COMPANY ALREADY BURDENED WITH HEADQUARTERS STAFF IN THREE CITIES AND A FAT WORK FORCE OF ABOUT 46000 USAIR ACKNOWLEDGES COSTS MUST FALL BUT SAYS IT HAD TO SLASH ITS FARES QUICKLY I CAN'T AFFORD TO LET THE OTHER GUY GET ESTABLISHED HERE IN THE EAST SAYS ROBERT FORNARO A USAIR SENIOR VICE PRESIDENT FOR THEIR PART CONTINENTAL AND SOUTHWEST MERELY WISH TO PARLAY THEIR LOWER COSTS INTO COMPETITIVE ADVANTAGE IN USAIR'S BACKYARD DESPITE THE SEVERITY OF THE NEW DISCOUNTS EASTERNERS STILL FACE COMPARATIVELY STEEP TICKET PRICES ON FLIGHTS OF 300 MILES OR LESS EAST COAST PASSENGERS CURRENTLY ARE BEING CHARGED FARES THAT ON AVERAGE ARE MORE THAN DOUBLE THOSE CHARGED WESTERNERS SAYS A STUDY BY THE AMERICAN EXPRESS AIRFARE GROUP A 190MILE FLIGHT WHICH AVERAGES ABOUT 156 ROUND TRIP OUT WEST CURRENTLY RUNS 319 IN THE EAST THE PRICE GAP PROMPTED SOUTHWEST AND CONTINENTAL TO INVADE USAIR'S HUB AT BALTIMORE/WASHINGTON INTERNATIONAL AIRPORT LAST FALL THE GROUNDWORK THE TWO BEGAN LAYING LAST SUMMER FOR THEIR SEPARATE ASSAULTS ULTIMATELY FORCED USAIR INTO ITS DEFENSIVE POSTURE BALTIMORE WHICH OFFERS A PREVIEW OF WHAT IS LIKELY TO COME SEEMS AN UNLIKELY SPOT FOR A FIRST SKIRMISH AMONG THE MAJORS COMMANDING 55 OF THE BALTIMORE AIRPORT'S DAILY FLIGHTS USAIR APPEARED TO HAVE A LOCK ON THE MIDATLANTIC REGION ESPECIALLY WITH ITS OTHER HUBS IN PHILADELPHIA PITTSBURGH AND CHARLOTTE BALTIMORE HELD ATTRACTIONS FOR THE NEWCOMERS LANDING FEES ARE LOWER THAN AT NEARBY AIRPORTS AND GATE RENTALS ARE REASONABLY PRICED PROXIMITY TO WASHINGTON AND SOUTHERN PENNSYLVANIA MAKES THE CITY A HUGE TRAVEL MARKET WITH LOW FARES TO ENTICE THEM THE MASSES COULD EASILY BE FUNNELED INTO THE AIRPORT BY AN EFFICIENT INTERSTATEHIGHWAY SYSTEM AND 30 TRAINS THAT ROLL INTO THE AIRPORT'S RAIL STATION DAILY IN BALTIMORE SOUTHWEST'S FIRST EAST COAST DESTINATION THE AIRLINE EMPLOYED ITS TIMETESTED STARTUP FORMULA IT DISPATCHED THE DIAMOND TEAM A HALFDOZEN PLANNERS FROM MARKETING AND SALES PROMOTION ADVERTISING AND PUBLIC RELATIONS THAT HANDLE ALL NEW CITIES THE TEAM SUBSCRIBED TO THE BALTIMORE SUN NEWSPAPER AND PORED OVER SPECIALLY PREPARED DEMOGRAPHIC DATA AND QUIETLY FANNED OUT IN SEARCH OF EVENTS SPORTS TEAMS OR CULTURAL INSTITUTIONS TO SPONSOR SOUTHWEST QUICKLY SIGNED UP THE ORIOLES BASEBALL TEAM FOR ADVERTISING AND JOINTMARKETING PROMOTIONS INCLUDING TICKET CONTESTS AND TO ENSURE THAT THE LOCALS DIDN'T MISTAKE SOUTHWEST FOR SOME FLYBYNIGHT OPERATOR THE AIRLINE FLOODED THE MARKET WITH NEWSPAPER AND TV ADS STRESSING ITS YOUNG JET FLEET AND INDUSTRYBEATING PROFITABILITY THEN SOUTHWEST DID WHAT IT DOES BEST IT OFFERED ROCKBOTTOM PRICES INCLUDING INTRODUCTORY ONEWAY FARES OF 19 TO CLEVELAND BALTIMORE RESPONDED IN THE FOURTH QUARTER PASSENGER BOARDINGS AT THE AIRPORT JUMPED MORE THAN 30 AND USAIR'S MARKET SHARE SLIPPED FOUR PERCENTAGE POINTS TO 51 SOUTHWEST NOW SAYS BALTIMORE IS ONE OF ITS MOST SUCCESSFUL NEW CITIES AND IT WANTS TO ADD MORE FLIGHTS AS SOON AS IT GET THE NEEDED PLANES AND ITS SIX NEW GATES CONTINENTAL ALREADY HAD EIGHT FLIGHTS A DAY FROM BALTIMORE BUT IT TARGETED THE CITY AND OTHERS SERVED BY USAIR FOR ITS LOWFARE CALITE OPERATION NOT QUITE A CARBON COPY OF SOUTHWEST CALITE PROVIDES ASSIGNED SEATS OFFERS A FIRSTCLASS CABIN AND AWARDS FREQUENTFLIER MILES CONTINENTAL HAD TO RETRAIN ITS CALITE PERSONNEL MANY OF WHOM WERE ACCUSTOMED TO THE MORE LEISURELY PACE OF NONHUB CITIES WORKERS WHO ONCE HAD HOURS TO STOCK GALLEYS AND LOAD BAGGAGE NOW HAVE ONLY MINUTES IN GREENSBORO NC FOR EXAMPLE WORKERS WHO ONCE HANDLED THREE FLIGHTS A DAY HAD TO GEAR UP FOR 30 SINCE EMERGING FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS WITH A FAR LIGHTER DEBT LOAD LAST APRIL CONTINENTAL HAS SHED MONEYLOSING PACIFIC ROUTES SHRUNK ITS UNPROFITABLE DENVER HUB AND BEEFED UP SHORTHAUL SERVICE BUT ITS BOLDEST MOVE HAS BEEN CALITE AN ATTEMPT TO EXPLOIT ITS LESSRESTRICTIVE UNION CONTRACTS STARTING NEXT MONTH CONTINENTAL WILL BEGIN BOOSTING CALITE FLIGHTS TO MORE THAN 800 A DAY FROM 300 BY YEAR'S END CALITE SERVICE WILL ACCOUNT FOR NEARLY TWOTHIRDS OF CONTINENTAL'S FLIGHTS THOUGH SOME ANALYSTS WONDER IF CONTINENTAL IS EXPANDING CALITE TOO QUICKLY OTHERS ARE ENTHUSIASTIC THERE'S NO REASON WHY CONTINENTAL AIRLINES SHOULDN'T BE ONE OF THE PROFITABLE US CARRIERS SAYS SAM BUTTRICK A KIDDER PEABODY & CO ANALYST SO FAR CONTINENTAL'S APPROACH HASN'T TRANSLATED INTO PROFITS BUT THE CARRIER EXPECTS IT WILL BY YEAR END SOUTHWEST THE ONLY CONSISTENTLY PROFITABLE AIRLINE FLYING SHORT ROUTES REMAINS THE MODEL AND IT DOESN'T LIKE THIS WAVE OF EMULATION HOWEVER FLATTERING SPEAKING BEFORE FINANCIAL ANALYSTS THIS MONTH SOUTHWEST CHAIRMAN HERBERT KELLEHER WARNED CONTINENTAL AND USAIR THAT HE WOULD RETALIATE IN THEIR LONGHAUL MARKETS IF THEY PLAN ON COMING INTO OUR NICHE IN A WAY THAT IRRITATES US AND JUST WHAT WOULD CONSTITUTE PROVOCATION BASICALLY HE SAID IT'S WHEN WE GET VERY VERY ANGRY 9402280056 940228 BUSINESS BRIEF WHEELABRATOR TECHNOLOGIES INC HORSEHEAD RESOURCE UNIT IS ACQUIRED BY SUBSIDIARY WHEELABRATOR TECHNOLOGIES INC'S WHEELABRATOR ENGINEERED SYSTEMS INC UNIT SAID IT ACQUIRED MEMTEK CORP A UNIT OF NEW YORKBASED HORSEHEAD RESOURCE DEVELOPMENT CO TERMS WEREN'T DISCLOSED IN A NEWS RELEASE WHEELABRATOR ENGINEERED SAID MEMTEK WILL MAINTAIN ITS HEADQUARTERS IN BILLERICA MASS AND SALES OFFICES AND OPERATIONS IN MEDFORD NJ CANTON MICH ORANGE AND MOORPARK CALIF AND SINGAPORE THE COMPANY SAID MEMTEK MAKES WASTEWATERTREATMENT SYSTEMS AND PRODUCTS FOR DOMESTIC AND INTERNATIONAL MARKETS WHEELABRATOR TECHNOLOGIES'S BUSINESS IS REFUSETOENERGY SERVICES 9402280055 940228 LEISURE & ARTS BOOKSHELF IT'S DOGEATDOG IN DEUTSCHLAND BY BRUCE BAWER PETER WALTER THE NARRATOR OF THE GERMAN WRITER UWE TIMM'S NOVEL HEADHUNTER NEW DIRECTIONS 402 PAGES 2295 IS A CLASSIC SUCCESS STORY AS THE NOVEL OPENS WALTER WHO HAS SCALED THE SALES LADDER ALL THE WAY FROM DOORTODOOR MAGAZINE PEDDLER THROUGH LIFEINSURANCE AGENT AND BUSINESSSTATIONERY VENDOR TO INTERNATIONAL COMMODITIES BROKER HAS BEEN ARRESTED AND TRIED FOR SIPHONING OFF FUNDS WITH HIS BUSINESS PARTNER DEMBROWSKI HE'S SKIPPED OFF TO SUNNY SPAIN ON THE DAY OF HIS VERDICT THERE WHILE DEMBROWSKI PLAYS TENNIS FROLICS WITH HIS YOUNG MISTRESS AND TRIES NOT TO THINK TOO MUCH ABOUT THE WIFE AND CHILDREN HE LEFT BACK IN HAMBURG WALTER RESEARCHES A BOOK ON EASTER ISLAND THOUGH HE'S NEVER VISITED IT THE ISLAND HAS LONG FASCINATED WALTER NOT ONLY BECAUSE OF THOSE FAMOUS STONE STATUES BUT BECAUSE OF THE SUDDEN SOCIAL COLLAPSE THAT CAUSED SOME STATUES TO BE LEFT HALFFINISHED WHAT BROUGHT ON THAT COLLAPSE WALTER HYPOTHESIZES THAT AN IMMENSE COLLECTIVE BOREDOM LED FIRST TO STATUEMAKING AND THEN TO CHAOS AND CANNIBALISM FOR MR TIMM PLAINLY THE CREATION OF THOSE MAMMOTH MYSTIFYING FIGURES IS A METAPHOR FOR THE 1980S FORTUNEBUILDING OF BOESKY AND MILKEN AND OTHER WOULDBE MASTERS OF THE UNIVERSE AND THUS A WARNING ABOUT THE EXCESSES OF CAPITALISM HEADHUNTER LIKE TOM WOLFE'S BONFIRE OF THE VANITIES IS A MEDITATION ON THE ANTHROPOLOGICAL MEANING OF '80S FINANCIAL WHEELERDEALERING LIKE DON DELILLO'S WHITE NOISE IT'S A REFLECTION ON THE MYSTERY OF LIFE LANGUAGE AND COMPUTERIZED BANKING SYSTEMS IT'S ALSO RIFE WITH IMAGES OF CANNIBALISM MODERN LIFE FOR MR TIMM IS AN ENDLESS SERIES OF VARIATIONS ON DOGEATDOG WALTER RECALLS THAT DURING WORLD WAR II HIS GRANDMOTHER PUT BREAD ON HER FAMILY'S TABLE BY MAKING GRENADES IN A MUNITIONS FACTORY HIS UNCLE A WRITER IS ALSO A CANNIBAL OF SORTS DIGGING WITH HIS QUESTIONS INTO GRANDMOTHER'S MEMORIES AS HE ASKS ABOUT THAT WARTIME JOB HOPING TO FEED PROFESSIONALLY ON HER LIFE NOT TOO FAR BENEATH MR TIMM'S PREOCCUPATION WITH CONTEMPORARY BRUTALITY LIES A VIVID SENSE OF THE HORROR OF WORLD WAR II YET THAT WAR IS REMEMBERED NOT FOR ITS DEATH CAMPS THE ONLY NAZI IS A LATVIAN SS MAN WHO WAS DISARMED BY WALTER'S GREATGRANDMOTHER BUT FOR ALLIED BOMBING OF GERMAN RESIDENTIAL NEIGHBORHOODS LIKEWISE MR TIMM IMPLICITLY ASCRIBES THE ASPECTS OF GERMAN FINANCE THAT HE FINDS OFFENSIVE NOT TO INDIVIDUALS BUT TO THE INFLUENCE OF THE FINANCIAL ESTABLISHMENT OF ANOTHER COUNTRY AMERICA WALTER RECALLS A FOULMOUTHED COLLEAGUE WHO HAD BROUGHT A TASTE FOR RICH FECAL LANGUAGE BACK WITH HIM FROM NEW YORK WHERE HE'D WORKED IN ONE OF THE MOST RESPECTED BROKERAGE FIRMS THE VERY TITLE OF MR TIMM'S NOVEL IS AN ANTIUS DIG IT REFERS TO WALTER'S FRIEND ROB A JOBPLACEMENT SPECIALIST FROM AMERICA WHO MAKES THE SERIOUS MISTAKE OF PUTTING HEADHUNTER INTO GERMAN AND INTRODUCING HIMSELF AS KOPFJAGER IN GERMANY THE TERM INEVITABLY SUGGESTS SMALL BLACK INDIAN HEADS DRIED IN THE SAND WITH THEIR OVERLONG HAIR AND LASHES TO SENSITIVE GERMANS EVEN THE LANGUAGE OF AMERICAN BUSINESS IS A SAVAGE PROPOSITION SURE ENOUGH UNLIKE GERMAN MANAGERS ROB WHOSE NAME IS A PUN HE DOES ROB FIRES EMPLOYEES COLDBLOODEDLY WITH NO REGARD FOR LONGSTANDING PERSONAL RELATIONSHIPS MODERN AMERICAN MANAGEMENT HE EXPLAINS COOLLY IT IS SAFE TO SAY THAT SOME AMERICAN READERS WILL FIND MR TIMM'S WORLD PICTURE MORE THAN A BIT SKEWED YET MR TIMM'S VIEWS ON AMERICAN VS GERMAN MANNERS AND MORALS SHOULDN'T BLIND READERS TO THIS NOVEL'S VIRTUES AMONG THEM ITS INSIGHTS INTO THE EROTICS OF COMMERCE I'M CONVINCED WALTER SAYS THAT SEXUALITY ALWAYS UNDERLIES TRADING THE PSYCHOLOGY OF SALESMANSHIP AND WHAT WALTER CALLS THE ESTHETICS OF MONEY IN BRAZIL TO WHICH HE FLEES AFTER THE AUTHORITIES CATCH UP TO HIM IN SPAIN WALTER REFLECTS ON THE SOILED TAPEDTOGETHER BRAZILIAN CURRENCY HE OBSERVES YOU CAN FEEL THE STABILITY OF A CURRENCY AT ANY RATE I CAN THE PLEASURE OF HANDLING THE MONEY IT'S NOT BY CHANCE THAT IN SWITZERLAND YOU GET THE IMPRESSION THAT YOU'RE ALWAYS GETTING FRESHLY PRINTED MONEY FOR CHANGE EVERY TIME ONE BEGINS TO FEEL EXASPERATED BY MR TIMM'S TENDENCY TO PLAY DOWN GERMAN FAILINGS AND BLAME THE US ONE READS SOMETHING FRESH QUIRKY UNEXPECTED AND ILLUMINATING FOR INSTANCE A CONVINCING ANALYSIS OF WHAT MAKES HIGH HEELS ATTRACTIVE MOREOVER FOR ALL WE'VE READ IN RECENT YEARS ABOUT WHY COMMUNISM COLLAPSED A LONG SPEECH BY DEMBROWSKI COMPARING THE PSYCHOLOGY OF EAST GERMAN ECONOMIC PLANNERS TO THAT OF WEST GERMAN STOCKBROKERS PROVES GRIPPING AND PERCEPTIVE ONE SHOCKING ASPECT OF THIS NOVEL IS THE SLOPPINESS OF PETER TEGEL'S TRANSLATION ERRORS OF GRAMMAR SPELLING AND PUNCTUATION ABOUND ALONG WITH AWKWARD GERMANISMS MR TEGEL'S GRASP OF AMERICAN USAGE IS AMAZINGLY SLIPPERY HE USES THE WORDS CAR AND TRUCK INTERCHANGEABLY SPEAKS OF TAKING LEGAL PROCEEDINGS AND SO ON FOR ALL ITS SHORTCOMINGS HEADHUNTER DESERVED TO BE RENDERED INTO ENGLISH MORE METICULOUSLY 9402280054 940228 ON THE WRONG TRACK BY PAUL KRUGMAN IRA MAGAZINER AND ROBERT REICH BOTH NOW INFLUENTIAL IN THE CLINTON ADMINISTRATION FIRST REACHED A BROAD AUDIENCE WITH THEIR 1982 BOOK ON INTERNATIONAL COMPETITIVENESS MINDING AMERICA'S BUSINESS THE BOOK ADVOCATED A US INDUSTRIAL POLICY AND IN THE INTRODUCTION THE AUTHORS EXPLAINED OUR STANDARD OF LIVING CAN ONLY RISE IF I CAPITAL AND LABOR INCREASINGLY FLOW TO INDUSTRIES WITH HIGH VALUEADDED PER WORKER AND II WE MAINTAIN A POSITION IN THOSE INDUSTRIES THAT IS SUPERIOR TO THAT OF OUR COMPETITORS WELL MINDING AMERICA'S BUSINESS NEVER REALLY JUSTIFIES THESE CRITERIA NOWHERE DOES THE BOOK COMPARE ACTUAL VALUEADDED PER WORKER IN DIFFERENT INDUSTRIES SUCH NUMBERS ARE NOT HARD TO FIND THE TABLE BASED ON DATA IN THE STATISTICAL ABSTRACT OF THE UNITED STATES SHOWS THAT THE US INDUSTRIES WITH REALLY HIGH VALUEADDED PER WORKER ARE IN SECTORS WITH VERY HIGH RATIOS OF CAPITAL TO LABOR LIKE CIGARETTES AND PETROLEUM REFINING THIS WAS PREDICTABLE BECAUSE CAPITALINTENSIVE INDUSTRIES MUST EARN A NORMAL RETURN ON LARGE INVESTMENTS THEY MUST CHARGE PRICES THAT ARE A LARGER MARKUP OVER LABOR COSTS THAN LABORINTENSIVE INDUSTRIES WHICH MEANS THAT THEY HAVE HIGH VALUEADDED PER WORKER AMONG LARGE INDUSTRIES VALUEADDED PER WORKER TENDS TO BE HIGH IN TRADITIONAL HEAVY MANUFACTURING SECTORS LIKE STEEL AND AUTOS HIGHTECHNOLOGY SECTORS LIKE AEROSPACE AND ELECTRONICS TURN OUT TO BE ONLY ROUGHLY AVERAGE SURELY MESSRS MAGAZINER AND REICH WERE NOT CALLING FOR AN INDUSTRIAL POLICY THAT WOULD FUNNEL CAPITAL AND LABOR INTO THE STEEL AND AUTO INDUSTRIES IN PREFERENCE TO HIGHTECH HOW THEN COULD THEY WRITE A WHOLE BOOK DEDICATED TO THE IDEA OF TARGETING HIGH VALUEADDED INDUSTRIES SEE RELATED ARTICLE COMPETITIVENESS A DANGEROUS OBSESSION WSJ FEB 28 1994 9402280053 940228 WHO'S NEWS HOME DEPOT INC HOME DEPOT INC ATLANTA THE COMPANY SAID IT CREATED A POST TO HELP LAUNCH ITS ENTRY INTO THE MEXICAN MARKET BILL PENA 40 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT/GENERAL MANAGER FOR MEXICO THE APPOINTMENT IS THE FIRST INDICATION THAT THE COMPANY HAS PLANS TO ENTER MEXICO AND FOLLOWS A RECENT PUSH INTO CANADA HOME DEPOT WHICH OPERATES 271 HOMEIMPROVEMENT STORES IN 23 STATES WOULDN'T DISCLOSE ITS SPECIFIC PLANS FOR ENTERING THE MEXICAN MARKET BUT A SPOKESMAN SAID IT IS A NATURAL EXTENSION FOR THE COMPANY PRIOR TO JOINING HOME DEPOT MR PENA HAD BEEN SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER FOR HOMEBASE A FULTERTON CALIFBASED HOMEIMPROVEMENT RETAILER 9402280052 940228 TREASURY TO SELL 52WEEK BILLS WASHINGTON THE TREASURY PLANS TO RAISE 168 BILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 165 BILLION OF 52WEEK BILLS TO REDEEM 1483 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794Q80 THE BILLS WILL BE DATED MARCH 10 AND WILL MATURE MARCH 9 1995 THEY WILL BE AVAILABLE IN MINIMUM 10000 DENOMINATIONS NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9402280051 940228 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9402280050 940228 STOCK OFFERING OF 11 BILLION IS RESCINDED ALLIANCE CAPITAL PLANS TO REISSUE PROSPECTUS WITH CORRECTED CHART BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK IT WAS A SIMPLE ERROR BUT A COSTLY ONE A CHART CONTAINED IN A PROSPECTUS SHOWING HOW WELL THE STOCKS OF PRIVATIZED COMPANIES PERFORMED IN RECENT YEARS WAS AN OVERSTATEMENT TO BE CORRECT MEANT ISSUING A NEW PROSPECTUS TO BE CORRECT ALSO MEANT RESCINDING THE 11 BILLION STOCK OFFERING SO INVESTORS COULD HAVE THE NEW INFORMATION WHICH IS WHAT HAPPENED FRIDAY TO THE GLOBAL PRIVATIZATION FUND I HAVE NEVER SEEN THIS BEFORE A BILLIONDOLLAR OFFERING AND THE TRADES RESCINDED IT'S INCREDIBLE SAID THOMAS HERZFELD A CLOSEDEND FUND SPECIALIST BASED IN MIAMI ALTHOUGH THE ERROR CAN BE EASILY CORRECTED IT ISN'T CERTAIN THAT INVESTORS WILL BE AS EAGER TO BUY INTO THE OFFERING OF THE GLOBAL PRIVATIZATION FUND WHEN IT COMES BACK TO MARKET IN THE NEXT WEEK OR SO AND THAT OF COURSE WOULD SPELL LOWER UNDERWRITING FEES FOR WALL STREET THE NEW YORK STOCK EXCHANGE ON FRIDAY SUSPENDED TRADING OF THE GLOBAL PRIVATIZATION FUND AFTER FOUR DAYS OF TRADING TRADES MADE FROM FEB 18 THE DATE TRADING BEGAN AND THURSDAY WILL BE CANCELED ABOUT 41 MILLION SHARES HAD TRADED ON THE EXCHANGE ALLIANCE CAPITAL MANAGEMENT LP THE MANAGER OF THE FUND FILED AN AMENDED REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND EXPECTS SPEEDY APPROVAL A SPOKESWOMAN SAID NEW PROSPECTUSES WILL BE MAILED THIS WEEK AND A NEW PRICING DATE COULD BE SET BY FRIDAY SHE SAID BUT FUND EXPERTS AND SYNDICATE OFFICIALS SAID THE OFFERING SUSPENSION MIGHT HAVE DEVALUED THE 745 MILLION COMMON SHARE DEAL TO THE POINT WHERE A NEW OFFERING WILL NEED TO BE MUCH SMALLER THAT IN TURN WILL AFFECT THE UNDERWRITER'S FEES WHICH TOTALED 782 MILLION IN THE ORIGINAL OFFER KIDDER PEABODY & CO WAS LEAD UNDERWRITER ALLIANCE CAPITAL AND ITS UNDERWRITERS ARE BEHIND THE OFFERING AND BELIEVE IT IS A VERY GOOD INVESTMENT THE ALLIANCE CAPITAL SPOKESWOMAN SAID WE ARE HOPEFUL THE SIZE OF THE OFFERING WILL BE SIMILAR THE CLOSING OF THE INITIAL OFFERING WAS SCHEDULED FOR THIS PAST FRIDAY MEANING THAT INVESTORS WERE TO GET DELIVERY OF AND PAY FOR THE SECURITIES THE SHARES HAD BEEN PRICED AT 15 EACH AND CLOSED THURSDAY AT 15 AN ANALYST AT ALLIANCE SOMETIME LAST WEEK NOTICED A MISCALCULATION IN A CHART THAT COMPARED SEVERAL INDEXES THE ERROR OCCURS IN A PRIVATIZATION COMPOSITE INDEX THAT IS COMPARED WITH COMPOSITES FROM THE STANDARD & POOR'S 500STOCK INDEX THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS GLOBAL INDEX AND THE MORGAN STANLEY EUROPE ASIA AND FAR EAST INDEX THE PRIVATIZATION COMPOSITE OVERSTATED ITS RETURNS OF 170 BETWEEN DEC 31 1988 AND SEPT 30 1993 THE ALLIANCE CAPITAL SPOKESWOMAN SAID ALTHOUGH SHE DECLINED TO GIVE THE CORRECT PERCENTAGE ACCORDING TO THE REVISED PROSPECTUS FILED WITH THE SEC THE RETURNS WERE 94 AND THE TIME PERIOD WAS STRETCHED OUT TO DEC 31 1993 IT WAS OUR ERROR THE SPOKESWOMAN SAID WE DISCOVERED THE PROBLEM AND IMMEDIATELY WENT INTO ACTION TO MAKE SURE APPROPRIATE STEPS WERE TAKEN TO CORRECT IT THE S&P 500STOCK INDEX RETURNS AND THE MORGAN STANLEY EMERGING MARKETS GLOBAL INDEX RETURNS BY COMPARISON HOVER BETWEEN 55 TO 60 FOR THE TIME PERIOD WHILE THE MORGAN STANLEY EUROPE ASIA AND FAR EAST INDEX RETURNS ARE LESS THAN 10 ACCORDING TO THE CHART IN THE OLD PROSPECTUS THE PRIVATIZATION COMPOSITE WAS COMPILED BY ALLIANCE CAPITAL AND COMPRISES STOCKS OF FORMER STATE ENTERPRISES THAT ARE NOW PRIVATE COMPANIES THE PROSPECTUS STATES THESE COMPANIES HAD CONDUCTED EQUITY OFFERINGS FROM JAN 1 1988 AND DEC 31 1992 AND HAVE AVAILABLE SHARE PRICE INFORMATION THE CHART WAS DESIGNED TO SHOW THAT STOCKS OF PRIVATIZED COMPANIES HAVE HIGHER RETURNS THAN BOTH THE STOCKS OF ESTABLISHED US COMPANIES AND THOSE IN EMERGING MARKETS IN ASIA LATIN AMERICA AND EUROPE THE FUND WILL INVEST 60 OF ITS ASSETS IN BUSINESSES BEING PRIVATIZED BY GOVERNMENTS IN DEVELOPED COUNTRIES IN WESTERN EUROPE SCANDINAVIA AUSTRALIA AND NEW ZEALAND AND 40 OF ITS ASSETS IN EMERGING MARKETS SUCH AS BRAZIL ARGENTINA AND CHILE IN LATIN AMERICA AND ASIA AND EASTERN AND CENTRAL EUROPE AT LEAST 65 OF THE FUND'S ASSETS WILL BE INVESTED IN ENTERPRISES UNDERGOING PRIVATIZATION THE BALANCE OF THE FUND'S ASSETS WILL BE INVESTED IN COMPANIES ALREADY PRIVATIZED AS OF DEC 31 1988 THE PRIVATIZATION COMPOSITE WAS COMPOSED OF 22 ISSUERS HAVING A MARKET CAPITALIZATION OF ABOUT 104 BILLION THE PROSPECTUS SAID BY SEPT 30 1993 THE ISSUERS INCREASED TO 128 AND THE MARKET CAP WAS ABOUT 292 BILLION A RESCINDED PUBLIC OFFERING MIGHT TURN OFF INVESTORS WHEN IT COMES TO MARKET FOR A SECOND TIME SAID MR HERZFELD THE MIAMI CLOSEDEND FUND SPECIALIST ADDING TO THE WARINESS WILL BE THE RECENT WEAKNESS IN MANY FOREIGN STOCK MARKETS ESPECIALLY THOSE IN EMERGING MARKETS HE SAID IN THE PAST WEEK 19 OF THE 20 WORSTPERFORMING CLOSEDEND FUNDS WERE FOREIGN COUNTRY FUNDS THANKS TO DECLINING MARKETS MR HERZFELD SAID THE OLD CHART WAS A SELLING POINT FOR THE GLOBAL PRIVATIZATION FUND SAID MARIANA BUSH A CLOSEDEND FUND ANALYST AT KEMPER SECURITIES THE OLD CHART LOOKED REALLY REALLY INTERESTING SHE SAID THE REVISED CHART ALSO SHOWS THE MORGAN STANLEY EMERGING MARKETS GLOBAL INDEX ACTUALLY OUTPACING THE PRIVATIZATION INDEX THROUGH THE END OF DECEMBER THE MORGAN STANLEY INDEX NOW SHOWS A RETURN OF 121 COMPARED WITH THE PRIVATIZATION'S 94 GAIN MS BUSH SAID THAT NOW THAT THE PRIVATIZATION STOCKS' RETURNS ARE MORE IN LINE WITH THOSE OF EMERGING MARKETS THE FUND WILL SIMPLY COMPETE WITH EXISTING EMERGING MARKETS FUNDS INSTEAD OF BEING A SHINING STAR BECAUSE THIS IS THE FIRST CLOSEDEND FUND IN THE US TO INVEST IN PRIVATIZED COMPANIES IT'S STILL A GOOD FUND WITH AN IDEA THAT MAKES SENSE SHE SAID IN EUROPE SHARE PRICES OF PRIVATIZED COMPANIES ARE LOWER THAN FAIR VALUE BECAUSE GOVERNMENTS ARE LOOKING TO ATTRACT INVESTORS THEY ARE PRIVATIZING ENTERPRISES IN THE FIRST PLACE TO REDUCE DEFICITS AND INFLATION SHE SAID THE COMPANIES ALSO ARE LARGE MONOPOLIES WITH ESTABLISHED MARKETS THAT EITHER HAVE UNDERGONE RESTRUCTURINGS OR CAN BECOME EVEN LEANER SHE SAID THE ALLIANCE CAPITAL SPOKESWOMAN SAID ALLIANCE CAPITAL AND THE UNDERWRITERS ARE UPBEAT ABOUT THE OFFERING THE ORIGINAL OFFERING WAS INCREASED FROM FOUR MILLION COMMON SHARES TO 745 MILLION SHARES THE ERROR DOES NOT CHANGE THE ATTRACTIVENESS OF THIS INVESTMENT OPPORTUNITY THIS IS A MARKET WE'RE VERY EXCITED ABOUT SHE SAID 9402280049 940228 BUSINESS BRIEF MCDONALD'S CORP TEXAS DROPS SUIT AFTER FIRM SETS SMOKEFREE RESTAURANTS TEXAS DROPPED A LAWSUIT AGAINST MCDONALD'S CORP AFTER THE FASTFOOD CHAIN ANNOUNCED IT WOULD MAKE ITS DOMESTIC COMPANYOWNED RESTAURANTS SMOKE FREE EARLIER THIS MONTH THE STATE'S ATTORNEY GENERAL DAN MORALES SUED OAK BROOK ILLBASED MCDONALD'S ALONG WITH BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC PEPSICO INC'S TACO BELL AND KFC CHAINS AND LONG JOHN SILVER'S RESTAURANTS INC SEEKING ACTION BY THE RESTAURANTS IN TEXAS TO REDUCE SECONDHAND SMOKE THAT MAY HARM CHILDREN AND OTHER PATRONS ON THE PREMISES MR MORALES CALLED THE MCDONALD'S DECISION TO GO SMOKE FREE THE RIGHT THING FOR THE RIGHT REASONS 9402280048 940228 BUSINESS BRIEF UDC HOMES INC BUILDER GETS OPTION TO BUY 1000 HOME SITES IN ARIZONA UDC HOMES INC SECURED AN OPTION TO PURCHASE MORE THAN 1000 HOME SITES IN RANCHO VISTOSO A 5859 ACRE PLANNED COMMUNITY IN TUCSON ARIZ TERMS WEREN'T DISCLOSED IN A NEWS RELEASE THE TEMPE ARIZBASED BUILDER SAID THE COMMUNITY WILL CONTAIN AN OFFICE PARK COMMERCIAL BUILDINGS A RESORT GOLF COURSE PARKS AND MORE THAN 2400 ACRES OF OPEN SPACE UDC PLANS TO OPEN THREE NEW SUBDIVISIONS IN RANCHO VISTOSO IN 1994 AND PLANS TO ACQUIRE THREE ADDITIONAL SUBDIVISIONS IN THE TUCSON MARKET IN 1995 FEATURING ONESTORY AND TWOSTORY HOUSES PRICED FROM 100000 TO MORE THAN 200000 9402280047 940228 MANAGER'S JOURNAL JOHN SCULLY'S HIGHWIRE ACT BY JAMES E SCHRAGER HOW COULD JOHN SCULLY HAVE MADE SUCH A POOR DECISION TO JOIN SPECTRUM TECHNOLOGIES THE COMPANY HE IS NOW SUING WHY DID SUCH AN APPARENTLY EFFECTIVE EXECUTIVE SAIL INTO TROUBLED WATERS WHEN HE JOINED A SMALL FIRM PART OF THE ANSWER MAY BE THAT MR SCULLY'S JUDGMENT WAS COLORED BY HIS UNDERSTANDABLE EXCITEMENT OVER SPECTRUM'S FASCINATING WIRELESS TECHNOLOGY BUT PART OF THE ANSWER MAY ALSO LIE IN THE DIFFERENCE BETWEEN CORPORATE EXECUTIVES AND ENTREPRENEURS PRIOR TO HIS BRIEF TENURE AS HEAD OF A SMALL BUSINESS MR SCULLY WORKED AT THE TOP OF BIG COMPANIES SUCH AS APPLE AND PEPSI IT IS NOT UNUSUAL FOR CORPORATE EXECUTIVES AT LARGE COMPANIES TO FAIL WHEN THEY TRY TO BECOME ENTREPRENEURS AND IT ALL HAS TO DO WITH POWER BIG CORPORATIONS HAVE IT SMALL ONES DON'T ENTREPRENEURS LEARN TO USE FINESSE ON JUST ABOUT EVERYONE IN SIGHT WHILE EXECUTIVES AT LARGE CORPORATIONS MERELY NEED TO MAKE UP THEIR MINDS AND EXERCISE THE ABUNDANT POWER THEY DERIVE FROM THEIR CORPORATE BASE THIS POWER DIFFERENCE IS THE DIRECT RESULT OF TWO KEY INGREDIENTS MONEY AND TIME EVEN IN TOUGH TIMES MOST LARGE CORPORATIONS HAVE PLENTY OF ASSETS HAVING A LARGE ASSET BASE MAKES YOU BELIEVE YOU HAVE PLENTY OF TIME AS WELL IT IS DIFFICULT TO QUICKLY END THE LIFE OF A LARGE CORPORATION EVEN WITH PLENTY OF MISTAKES ALONG THE WAY INERTIA KEEPS LARGE CORPORATIONS ROLLING ALONG UNTIL SOMEONE SOMEWHERE FINALLY DECIDES THINGS ARE FAR WORSE THAN THEY SEEM THINK OF THE HIGHWIRE ACT IN A CIRCUS THE SAFETY NET PREVENTS FATAL ACCIDENTS THE SAME CAN BE SAID OF THE ASSET BASE IN A LARGE CORPORATION BUT ENTREPRENEURS WORK WITHOUT A NET THEIR MINUSCULE ASSET BASE MEANS THEY BET THEIR ECONOMIC LIVES ON SUCCESS RARELY CAN THEY MAKE MISTAKES WITHOUT LOSING IT ALL LIFETIME CORPORATE EXECUTIVES ON THE OTHER HAND GROW ACCUSTOMED TO WALKING THE HIGH WIRE WITH A NET IF THEY THEN JOIN A NEW CIRCUS THAT DOESN'T USE A NET IT MIGHT AT THE VERY LEAST CAUSE THEM TO LOSE THEIR BEARINGS IT MIGHT EVEN GIVE THE EXECUTIVE SECOND THOUGHTS ABOUT PERFORMING OUT THERE IN FRONT OF A CROWD IT MUST BE PARTICULARLY HARD TO BE POWERLESS AFTER YOU'VE HELD THE REINS OF A LARGE CORPORATION THIS IS NOT TO SAY THAT IT CAN'T BE DONE JUST THAT IT TAKES AN UNUSUAL INDIVIDUAL TO BE WILLING TO WORK WITHOUT A NET AFTER HAVING ONE FOR SO MANY YEARS EVEN IF MR SCULLY HAD PREPARED HIMSELF TO PERFORM WITHOUT A NET HIS DECISION TO PURSUE A LAWSUIT UNCOVERS HIS CORPORATE RATHER THAN ENTREPRENEURIAL INSTINCTS REAL ENTREPRENEURS DON'T START LAWSUITS AND IT'S NOT BECAUSE THEY DON'T WANT TO HAVE THEIR DAY IN COURT THEY KNOW THAT THERE ARE SOME THINGS MORE IMPORTANT THAN BEING RIGHT WHO CAN AFFORD THE LEGAL BILLS THE TIME SPENT OR MOST IMPORTANT THE ENERGY REQUIRED TO ENGAGE IN LEGAL COMBAT REAL ENTREPRENEURS REALIZE THAT THEY CANNOT WAIT THE FIVE SIX OR EVEN 10 YEARS NECESSARY TO RESOLVE A DISPUTE PARTICULARLY WHEN THE OUTCOME IS CRITICAL A SPEEDY SETTLEMENT MAY BE FAR MORE IMPORTANT THAN SMASHING YOUR OPPONENT TO HIS KNEES IN FRONT OF A PACKED COURTROOM IN BRINGING HIS LAWSUIT AGAINST SPECTRUM MR SCULLY SHOWS US HIS INSTINCTS AND THEY ALL RUN TO THE POWER SIDE OF THE LEDGER IT CERTAINLY IS POSSIBLE THAT HE WAS LIED TO OR WORSE BY HIS FORMER EMPLOYER BUT HE IS ACTING AS AN EXECUTIVE WOULD NOT AS AN ENTREPRENEUR HE IS LOOKING TO OUTSPEND AND OUTLAST HIS OPPONENTS IF HE WERE AN ENTREPRENEUR HE'D BE TRYING TO OUTSMART THEM INSTEAD MR SCHRAGER IS A LECTURER AT THE UNIVERSITY OF CHICAGO GRADUATE SCHOOL OF BUSINESS AND PRESIDENT OF JAPAN CAPITAL MARKETS INC IN SOUTH BEND IND 9402280046 940228 WORLD MARKETS LONDON STOCKS REBOUND BUT EUROPEAN JITTERS PERSIST PRICES RISE IN TOKYO BUT TUMBLE IN ASIA A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARE PRICES REBOUNDED FROM OPENING LOWS FRIDAY TO END HIGHER AND RECOUP PART OF THE PREVIOUS DAY'S PLUNGE BUT EUROPEAN EXCHANGES OVERALL PUT IN A MIXED TO WEAKER PERFORMANCE PROLONGING THURSDAY'S DEBACLE FROM FEARS OF CLIMBING INTEREST RATES FRANKFURT EQUITIES FELL DRAGGED DOWN BY UNCERTAINTY IN THE BOND MARKET WITH MANY WORLD BOURSES STUMBLING LATE LAST WEEK AND THE JAPANESE YEN STRENGTHENING TOKYO STOCKS SHOWED RESILIENCY AS THE MAIN INDEX ENDED SLIGHTLY HIGHER WHILE THE BROADER MARKET WAS MIXED PRICES CRUMBLED THROUGHOUT ASIA AND THE PACIFIC SYDNEY STOCKS SKIDDED 22 PARTLY ON CONCERNS ABOUT HIGHER US INTEREST RATES HONG KONG SHARES PLUNGED 32 ON POLITICAL ANXIETIES ABOUT ELECTORAL REFORM IN THE TERRITORY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11572 UP 009 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND EUROPE AND A DROP IN ASIA/PACIFIC MARKETS CONSUMERELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14177 UP 302 OR 22 WITH MATSUSHITAKOTOBUKI ELECTRONICS INDUSTRIES LTD OF JAPAN POSTING A 66 GAIN IN ITS LOCAL CURRENCY REALESTATE STOCKS TRAILED AT 13423 DOWN 279 OR 2 WITH GREAT EAGLE HOLDINGS LTD OF HONG KONG SLIDING 73 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 137 POINTS TO 32812 JUST 21 POINTS OFF THE SESSION'S HIGH AND 378 POINTS ABOVE THE LOW THE FT 30STOCK INDEX CLIMBED 78 POINTS TO 25359 VOLUME WAS 7924 MILLION SHARES UP FROM 754 MILLION SHARES A DAY EARLIER THE MARKET SLIDE'S HALT STEMMED FROM INVESTORS' REFOCUSING ON FUNDAMENTALS OF GOOD BRITISH ECONOMIC AND CORPORATE GROWTH AND LOW INFLATION AND FROM A RECOVERY IN BOND AND STOCKFUTURES MAR KETS PRICES RALLIED ON A RUMOR THAT BRITAIN'S CENTRAL BANK HAD STEPPED IN TO SUPPORT SAGGING PRICES OF GILTS OR GOVERNMENT BONDS YET THE FT 100 ISSUES OVERALL HAD A MIXED PERFORMANCE ON FRIDAY THE LAST DAY OF A TWOWEEK TRADING ACCOUNT THOUGH THE LONDON MARKET EXPECTS BRITAIN'S BASE LENDING RATE TO FALL FURTHER IT STILL WAS VIEWED AS VULNERABLE TO PERSISTENT FEARS THAT WORLD INTEREST RATES WILL RISE A FACTOR THAT HELPED PRODUCE BIG DROPS ON GLOBAL BOURSES THURSDAY IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1537 POINTS TO 207492 IN LOW VOLUME A PLUNGE IN THE GERMAN BOND MARKET EARLY FRIDAY WAS MAINLY TO BLAME FOR THE SLUMPING DAX AND EVEN WHEN BONDS RECOVERED LATER THE STOCK MARKET REMAINED DEPRESSED IN PARIS STOCKS DROPPED IN FEATURELESS TRADING THOUGH THEY DID BOUNCE UP FROM LOWS AS SOME OF THE DISAPPOINTMENT ABOUT THURSDAY'S SMALLERTHANEXPECTED RATE CUT BY FRANCE'S CENTRAL BANK WANED IN AMSTERDAM SHARES FELL BECAUSE OF THE US DOLLAR'S DECLINE BROADLY LOWER BOND PRICES AND A WEAK START ON WALL STREET IN MILAN SHARES OPENED WEAKLY BUT ENDED HIGHER LIFTED BY TECHNICAL FACTORS FOLLOWING SHARP DROPS EARLIER LAST WEEK IN MADRID STOCKS FELL DAMPED BY A WEAK BOND MARKET PERFORMANCE IN STOCKHOLM PRICES SLIPPED AS ATTENTION FOCUSED ON HIGHER INTEREST RATES AND SWEDISH CORPORATE EARNINGS IN ZURICH THE MARKET THUDDED 1 IN CHOPPY TRADING DRAGGED LOWER BY FUTURESRELATED SELLING WEAKNESS IN THE SWISS BOND MARKET AND STRONG DOWNWARD PRESSURE ON THE BANKING SECTOR BUT IN BRUSSELS STOCKS ENDED MAINLY HIGHER AFTER LOSSES WERE REVERSED BY A SURPRISE CUT BY THE BELGIAN CENTRAL BANK IN TWO OF ITS LENDING RATES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SOARED 42365 POINTS THURSDAY EKED OUT A 3790POINT RISE TO 1980338 NEAR THE DAY'S HIGH LOSERS NARROWLY TOPPED GAINERS 540481 ON MONDAY IN TOKYO THE NIKKEI ROSE 26273 POINTS TO CLOSE THE MORNING SESSION AT 2006611 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A RELATIVELY BRISK 430 MILLION SHARES DOWN FROM 4831 MILLION SHARES THURSDAY THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 2977 POINTS THURSDAY EDGED UP 225 TO 160987 GIVEN GLOBAL EXCHANGES' RECENT BEARISH TREND EVEN THE NIKKEI'S SMALL ADVANCE WAS VIEWED AS POSITIVE STRONG BUYING CAME FROM OVERSEAS INVESTORS AND 16 JAPANESE INVESTMENT TRUST FUNDS THAT WERE SET UP FRIDAY IN SYDNEY SHARES TUMBLED AS CONFIDENCE WAS UNDERMINED BY ANXIETY ABOUT HIGHER INTEREST RATES IN THE US WEAKER BOND PRICES IN AUSTRALIA AND THE THURSDAY SLUMP ON WALL STREET THOUGH INVESTORS DIDN'T EXPECT AN INCREASE SOON IN AUSTRALIAN INTEREST RATES THEY SENSED THAT RATES MIGHTN'T FALL ANY FURTHER IN HONG KONG STOCKS' SHARP DROP WAS SPARKED BY WEAKNESS IN OVERSEAS MARKETS AND WORSENED JITTERS ABOUT THE HONG KONG GOVERNMENT'S PUSH TO REFORM THE ELECTORAL SYSTEM WITHOUT APPROVAL BY CHINA WHICH REGAINS SOVEREIGNTY OVER THE BRITISH COLONY IN 1997 THE MAIN INDEX MANAGED TO CLAW ITS WAY UP FROM SEVERE LOWS WHEN THE MAIN GAUGE WAS DOWN 46 BUT STILL FINISHED AT ITS LOWEST LEVEL SINCE DEC 15 IN SINGAPORE PRICES ENDED BROADLY LOWER TAKING THE BENCHMARK INDEX DOWN 12 EARLY LOSSES CAME IN RESPONSE TO NEW YORK STOCKS' PLUNGE ON THURSDAY THEN EQUITIES WERE BATTERED BY NEWS REPORTS THAT MALAYSIA WOULD BOYCOTT BRITISH FIRMS IN RETALIATION FOR ALLEGEDLY BRIBING SENIOR MALAYSIAN POLITICIANS IN AN AIDFORARMS DEAL IN KUALA LUMPUR SHARES SLUMPED 19 IN A BROAD SWATH FROM HEAVY PROFITTAKING AS INVESTORS WERE UNWILLING TO HOLD POSITIONS OVER THE WEEKEND IN LIGHT OF REGIONAL BOURSES' LOSSES BARGAIN HUNTING HELPED PULL PRICES UP FROM LOWS BUT INVESTORS REMAINED NERVOUS ABOUT WALL STREET'S DIRECTION IN TAIPEI EQUITIES SLIPPED AS THE MARKET EXTENDED ITS CONSOLIDATION THOUGH BARGAIN HUNTERS HELPED LIFT PRICES FROM EARLY LOSSES INVESTORS WERE DISAPPOINTED BY THE LACK OF NEWS ON TAIWAN CENTRALBANK INTENTIONS ON MARKET LIQUIDITY IN SEOUL STOCKS CLOSED 13 LOWER AS INSTITUTIONAL AND SMALL INVESTORS STAYED AWAY FROM THE MARKET SELLING PRESSURE APPLIED ACROSS THE BOARD AS MANY INVESTORS WERE CONCERNED ABOUT ANY LIQUIDITYTIGHTENING MOVE BY SOUTH KOREA'S CENTRAL BANK IN WELLINGTON STOCKS SLUMPED 23 AFTER SOME USBASED INVESTORS SOLD OUT OF THE MARKET TO REPATRIATE FUNDS MOST OF THE WEAKNESS WAS IN ISSUES THAT FOREIGN INVESTORS HAD BOUGHT EARLIER THIS YEAR 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 9402280045 940228 GLOBAL VIEW BUSINESS SHOULD BE WARY OF TRADE POLITICS BY GEORGE MELLOAN WHEN PRESIDENT CLINTON INTERCEDED WITH SAUDI ARABIA'S KING FAHD TO SWING A 6 BILLION AIRCRAFT SALE TO BOEING AND MCDONNELL DOUGLAS TWO WEEKS AGO AL GORE WAS IMMEDIATELY DISPATCHED TO SEATTLE TO COLLECT THE GLORY HE ARRIVED AT BOEING ALL SMILES AND WAVES LIKE A CONQUERING HERO OR TO USE HIS PRESIDENT'S METAPHOR AN OLYMPIC GOLD MEDAL WINNER PERHAPS SOME BOEING EMPLOYEES RESENTED THE GRANDSTANDING KNOWING AS THEY DO THAT IT ISN'T HARD FOR THE US TO SQUEEZE KING FAHD AND THAT WHAT REALLY SELLS AIRLINERS IS THE QUALITY THEY BUILD INTO THEM BUT THEY WERE HARDLY IN A POSITION TO COMPLAIN ABOUT THIS GIFT OF DIVINE INTERVENTION THE COMPLAINTS CAME FROM EUROPE WHERE AIRBUS INDUSTRIE ACED OUT OF THE SAUDI DEAL PROTESTED THAT THE US HAD VIOLATED GATT RULES IF IT WON THE BUSINESS BY STRETCHING OUT SAUDI PAYMENTS ON MILITARY CONTRACTS THE WHITE HOUSE DIDN'T SEEM CONCERNED EUROPEANS DON'T VOTE IN US ELECTIONS BUT MAYBE SOME WHO DO VOTE US BUSINESS LEADERS SHOULD BE CONCERNED THE CLINTON ADMINISTRATION'S RAMPANT POLITICIZATION OF TRADE HAS PITFALLS FOR THEM WHEN THE GOVERNMENT BECOMES A PARTNER TO BUSINESS IT QUICKLY ASSUMES THE ROLE OF SENIOR PARTNER ONE THAT THINKS IT KNOWS A LOT MORE ABOUT BUSINESS THAN IT REALLY KNOWS TO BE SURE MR CLINTON LAST YEAR DISPLAYED SOME ENCOURAGING TRADE INSTINCTS HIS WEIGHT BEHIND THE NAFTA AND GATT AGREEMENTS INDICATED AN UNDERSTANDING THAT FREE TRADE IS GOOD POLITICS IN AMERICA A LESSON HIS CONGRESSIONAL COLLEAGUE RICHARD A GEPHARDT SEEMS INCAPABLE OF LEARNING ON THE OTHER HAND MR CLINTON IS PROVING CAPABLE OF PUTTING HIS WEIGHT BEHIND FREE TRADE IN GENERAL WHILE AT THE SAME TIME PRACTICING SOMETHING SUBSTANTIALLY DIFFERENT IN THE SPECIFIC IT WAS ONLY AN ILLUSION DURING THE NAFTAGATT DEBATE THAT HE WAS ABANDONING THE MANAGED TRADE CONCEPTS HIS TEAM HAD ESPOUSED A YEAR AGO THE CLINTONITES NO STICKLERS FOR EITHER CONSISTENCY OR LOGIC SIMPLY THINK THEY CAN PLAY THE POLITICS OF MANAGED TRADE AND FREE TRADE SIMULTANEOUSLY IN FACT THE TWO ARE ANTITHETICAL THAT BECAME EVIDENT WHEN MR CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AGREED TO DISAGREE AT THEIR SUMMIT EARLIER THIS MONTH THE PRESIDENT DRAGGED OUT THE OLD MANAGED TRADE FORMULAS AND SLAPPED THEM ON THE TABLE THE JAPANESE WERE ASKED FOR EXAMPLE TO INCREASE THEIR AUTO AND AUTO PARTS IMPORTS FROM THE US BY 20 ACCORDING TO HIROSHI KUMAGAI JAPAN'S MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY MITI GIVEN THE FACT THAT JAPANESE CONSUMERS NOT UNLIKE AMERICANS HAVE THEIR OWN IDEAS ABOUT WHOSE CARS THEY BUY IT IS ANYONE'S GUESS HOW JAPAN WAS SUPPOSED TO COMPLY MR HOSOKAWA SMILINGLY SAID NO THIS TOUCHED OFF THREATS OF US TRADE SANCTIONS AND SOME SUBTLE MOVES TO CHEAPEN THE DOLLAR AND THUS REDUCE THE CASH FLOW OF JAPANESE EXPORTERS SINCE THAT ALSO THREATENED EXCHANGE RATE LOSSES ON US BONDS IT BACKFIRED BY ROCKING AN ALREADY SKITTISH US BOND MARKET TRADE CHIEF MICKEY KANTOR HURRIEDLY WENT ON THE AIR TO ASSURE THE WORLD THAT THE US WAS NOT STARTING A TRADE WAR WITH JAPAN THIS WAS FURTHER EVIDENCE THAT US TRADE POLICY IS LARGELY IMPROVIZATIONAL AND UNRELIABLE CERTAINLY THE JAPANESE ARE GUILTY OF TRADE SINS BUT THEY HOLD NO EXCLUSIVE FRANCHISE ON WAYS TO VIOLATE THE GATT RULES THE JAPANESE ARE MASTERS AT ADMINISTRATIVE BLOCKAGES OF IMPORTS BUT THE US AND EUROPE ARE DEFT AT OTHER MEANS SUCH AS SETTING SAFETY AND ENVIRONMENTAL STANDARDS THAT CATCH FOREIGN FIRMS OFF GUARD OR DEMANDING VOLUNTARY QUOTAS ON CERTAIN ITEMS AS A FINAL RESORT THE CLINTONITES AND LIKEMINDED TRADE MANAGERS IN CONGRESS SIMPLY SOAR ABOVE ALL THE NIGGLING ARGUMENTS ABOUT RULES AND DEMAND THAT TRADE PARTNERS WHO SELL SIGNIFICANTLY MORE THAN THEY BUY IN THE US ADJUST THE BALANCE OR FACE SANCTIONS THIS IS A PRETTY STUPID WAY TO CONDUCT TRADE POLICY MERCHANDISE TRADE NEVER BALANCES EVEN GLOBALLY IN PART BECAUSE THE STATISTICS THAT MEASURE THESE THINGS ARE ARBITRARILY DERIVED AND UNRELIABLE CONSUMER CHOICES AND THE COMPARATIVE ADVANTAGES OF PRODUCERS CHANGE CONSTANTLY TO ENFORCE BALANCE WOULD REQUIRE NOTHING LESS THAN POLICE STATE METHODS WHICH IS WHY THE CLINTON FIXATION ON MANAGED TRADE IS SCARY AND IN THE FINAL ANALYSIS BALANCE IS NOT IMPORTANT TRADE NEVER BALANCES BUT DOLLAR ACCOUNTS ALWAYS DO DOLLARS EARNED BY FOREIGNERS REMAIN IN THE DOLLAR CAPITAL POOL THE CLINTON ATTACK ON JAPAN COMES AT A TIME WHEN THE US IS ENJOYING ECONOMIC RECOVERY AND JAPAN IS IN RECESSION THERE IS NO MACROECONOMIC EVIDENCE THAT THE US IS BEING INJURED IN ITS TRADE RELATIONSHIPS WITH THE REST OF THE WORLD QUITE THE CONTRARY IF THE US WERE RUNNING A TRADE SURPLUS THE REST OF THE WORLD WOULD NO LONGER BE PILING UP ALL THE DOLLARS THAT NOW HELP PROP UP THE US BOND AND STOCK MARKETS IN THE 1980S THE JAPANESE WERE MAJOR PURCHASERS OF US TREASURY BONDS WHICH CONGRESS OF COURSE ISSUES IN GREAT ABUNDANCE JAPANESE BUYING HAS SINCE SLACKED OFF THE POLITICIZATION OF TRADE POSES MORE DANGERS THAN BENEFITS TO US EXPORTERS BOEING MAY HAVE HAD HELP ON THE SAUDI DEAL BUT IT IS VERY WORRIED THAT THE ADMINISTRATION'S PRACTICE OF TRADE POLITICS IN ASIA MAY COST IT SALES IN THAT HUGE AND RAPIDLY GROWING MARKET THE US IS PUTTING A POLITICAL SQUEEZE ON INDONESIA DEMANDING THAT IT RAISE LABOR STANDARDS AND COSTS AND IS THREATENING TO DENY CHINA TARIFF EQUALITY MFN WITH OTHER US PARTNERS CHINA IS EXPECTED TO GROW SOME 9 THIS YEAR AND INDONESIA SOME 6 INDEED EVERY NATION IN ASIA IS GROWING FASTER THAN JAPAN THE PLACE THAT GENERATES ALL THAT WHITE HOUSE PARANOIA THERE ARE A FEW MARGINAL SIGNS IN THE PRESS THAT THIS YEAR'S RETURN TO TRADE POLITICS IS NOT AS POPULAR WITH AMERICAN VOTERS AS LAST YEAR'S TRADE AGREEMENT ACHIEVEMENTS MR CLINTON CAN'T HAVE THINGS BOTH WAYS EITHER HE ABIDES WITH AGREEMENTS THAT REMOVE TRADE BARRIERS OR INDULGES IN POLITICAL GAMES THAT AS OFTEN AS NOT VIOLATE THOSE PRINCIPLES IT MIGHT NOT BE SUCH A BAD IDEA AS WELL FOR AMERICAN CORPORATION CEOS TO CONSIDER THAT FOR EVERY HAPPY SAUDI DEAL WITH ITS POLITICAL MIDWIFERY THERE IS THE POTENTIAL FOR A DEAL LOST BY A GOVERNMENT'S POLITICAL MEDDLING 9402280044 940228 LETTERS TO THE EDITOR WE'RE ALL GOING TO BE CONNECTED WHEN ELECTRIC POWER STOPPED BEING A CURIOSITY AND BECAME A NECESSITY PRESIDENT FRANKLIN ROOSEVELT DEVELOPED A PROGRAM TO EXTEND ELECTRIC SERVICE TO PREVIOUSLY UNSERVED RURAL REGIONS SIMILARLY THE US HAS LONG BEEN COMMITTED TO THE WIDESPREAD AVAILABILITY OF BASIC TELEPHONE SERVICE AT AFFORDABLE RATES AS TELECOMMUNICATIONS CAPABILITIES ADVANCE AND THE NATIONAL INFORMATION INFRASTRUCTURE NII DEVELOPS THE CONCEPT OF UNIVERSAL SERVICE MUST ADVANCE AS WELL WHEN ADVANCED COMMUNICATIONS TECHNOLOGIES BECOME AS IMPORTANT TO MODERN LIFE AS THE TELEPHONE ELECTRIC POWER AND PUBLIC SCHOOLING ARE TODAY WE MUST ENSURE THAT THESE SERVICES ARE AVAILABLE TO ALL FOR THIS REASON WE MUST CHARGE THE FCC AND THE STATES WITH REVISING UNIVERSAL SERVICE OBJECTIVES TO GET THIS PROCESS UNDER WAY I RECENTLY CHALLENGED INDUSTRY TO CONNECT ALL OF OUR CLASSROOMS LIBRARIES HOSPITALS AND CLINICS BY THE YEAR 2000 AND I HAVE BEEN DELIGHTED WITH THE RESPONSE OF SOME COMPANIES ALAN MURRAY'S RECENT SKEPTICISM ABOUT THE WISDOM OF UNIVERSAL SERVICE COMMITMENT IS DIFFICULT TO UNDERSTAND THE OUTLOOK GORE'S DATA HIGHWAY ANOTHER ENTITLEMENT JAN 31 HIS FIRST CONCERN IS THAT IT WOULD BE TOO EXPENSIVE FOR THE COUNTRY TO AFFORD YET THE PRIMARY DANGER IS JUST THE REVERSE OUR SOCIETY CANNOT AFFORD THE FAILURE TO CONNECT LARGE SEGMENTS OF OUR NATION TO THE INFORMATION SUPERHIGHWAY JUST AS CONGRESS THE EXECUTIVE BRANCH THE FCC AND THE STATES WILL SHARE RESPONSIBILITY FOR REVISING UNIVERSAL SERVICE THEY ALSO WILL SHARE RESPONSIBILITY FOR MEETING THOSE OBLIGATIONS IN A FINANCIALLY RESPONSIBLE MANNER THE LIKELY SIZE OF THESE ANNUAL OBLIGATIONS WILL BE FAR LESS THAN THE 20 BILLION MR MURRAY CITES MR MURRAY ALSO IS CONCERNED THAT ACCESS TO THE NII IS SOMEHOW NOT IMPORTANT BECAUSE IT CAN SUPPLY ENTERTAINMENT AS WELL AS EDUCATION EMPLOYMENT AND HEALTH INFORMATION THIS IS A CURIOUS COMPLAINT IS A HIGHSCHOOL AUDITORIUM ANY LESS ESSENTIAL TO A COMMUNITY BECAUSE IT IS USED FOR DANCES AND FILMS AS WELL AS LECTURES MEETTHECANDIDATES PROGRAMS AND JOB FAIRS THE SAME PRINCIPLE APPLIES TO THE NII FINALLY MR MURRAY COMPLAINS THAT THE BENEFITS OF UNIVERSAL SERVICE WILL NOT BE TARGETED TO THE POOR THIS ADMINISTRATION IS CONCERNED ABOUT ENSURING THAT THE DISADVANTAGED HAVE ACCESS TO THE NII OUR PROPOSAL WILL MAKE IT POSSIBLE FOR THE FCC AND THE STATES TO PROVIDE THAT ACCESS AND FOR THEM TO IDENTIFY OTHER APPROPRIATE BENEFICIARIES OF UNIVERSAL SERVICE SUBSIDIES INCLUDING SCHOOLS HOSPITALS AND THOSE WHO NOW HAVE ACCESS TO LIFELINE TELEPHONE SERVICE WE MUST AVOID CREATING A SOCIETY OF INFORMATION HAVES AND HAVE NOTS CONSEQUENTLY WE MUST ENCOURAGE COMPETITION THEREBY LOWERING PRICES FOR EVERYONE THE LOWER THE PRICE THE LESS THE NEED FOR SUBSIDIES 9402280043 940228 BUSINESS BRIEF AG EDWARDS INC PROFIT FOR YEAR IS EXPECTED TO BE ABOVE 150 MILLION AG EDWARDS INC SAID IT EXPECTS 1994 FISCALYEAR EARNINGS TO EXCEED 150 MILLION UP AT LEAST 20 FROM 1194 MILLION A YEAR EARLIER THE ST LOUIS BROKERAGE HOUSE SAID REVENUE WOULD EXCEED 12 BILLION A RECORD FOR THE COMPANY UP FROM 107 BILLION A YEAR EARLIER AG EDWARDS'S 1994 FISCAL YEAR ENDS TODAY THROUGH THE FIRST NINE MONTHS THE COMPANY POSTED EARNINGS OF 1148 MILLION ON REVENUE OF 9565 MILLION THOSE NUMBERS SUGGEST THAT FOURTHQUARTER NET INCOME SHOULD REACH 352 MILLION CLOSE TO THE YEAREARLIER'S 364 MILLION THE COMPANY WOULDN'T COMMENT ON FOURTHQUARTER ESTIMATES SAYING FINAL FIGURES WEREN'T YET AVAILABLE SEPARATELY AG EDWARDS AUTHORIZED THE PURCHASE OF AS MANY AS 15 MILLION SHARES OF ITS OWN STOCK THROUGH DEC 31 1995 THE COMPANY CURRENTLY HAS 60229000 SHARES OUTSTANDING 9402280042 940228 MARKETING & MEDIA HEARST CORP PLAN TO SELL BOOK UNITS FAILS AFTER TALKS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER MONTHS OF NEGOTIATIONS TO SELL ITS BOOKPUBLISHING DIVISION HEARST CORP SAID IT HAS DECIDED TO KEEP WILLIAM MORROW & CO AND AVON BOOKS AND REBUILD THE COMPANIES' DEPLETED STAFFS THE REVERSAL LATE FRIDAY SHOCKED THE PUBLISHING WORLD BECAUSE AN AGREEMENT HAD SEEMED IMMINENT FOR HEARST TO SELL THE DIVISION TO PUTNAM BERKLEY GROUP INC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC EXECUTIVES KNOWLEDGEABLE ABOUT THE DEAL SAY THAT AFTER MONTHS OF NEGOTIATING THE TWO COMPANIES WERE JUST TOO FAR APART IN PRICE TERMS WERE NEVER DISCLOSED BUT THE DEAL WAS EXPECTED TO CLOSE IN THE 160 MILLION TO 200 MILLION RANGE HEARST INITIALLY BEGAN EXPLORING THE SALE OF THE BOOK DIVISION AFTER IT WAS APPROACHED BY SEVERAL INTERESTED BUYERS A YEAR AGO IT LATER RETAINED INVESTMENT BANKER LAZARD FRERES & CO TO EVALUATE OFFERS BUT THE TALKS NARROWED TO PUTNAM LAST FALL PHYLLIS GRANN PUTNAM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WE'RE DISAPPOINTED THAT THE DEAL WASN'T MADE BUT BOTH SIDES REALLY TRIED THE DISSOLUTION OF MERGER TALKS LEAVES TWO MEDIUMSIZE PUBLISHERS FACING INCREASED COMPETITION FROM INDUSTRY HEAVYWEIGHTS SUCH AS PARAMOUNT COMMUNICATIONS INC WHOSE PARAMOUNT PUBLISHING JUST SWALLOWED UP MACMILLAN INC MS GRANN SAID SHE WILL BE LOOKING FOR OTHER ACQUISITION CANDIDATES IF SOMETHING ELSE COMES ALONG THAT MAKES SENSE FOR THE BELEAGUERED STAFFS OF MORROW AND AVON THE ANNOUNCEMENT MEANS THE END OF A LONG YEAR IN LIMBO BUT EVEN HEARST'S TOP EXECUTIVES ADMIT THEY'VE GOT A LOT OF WORK AHEAD AS NEGOTIATIONS DRAGGED ON MORROW ESPECIALLY LOST MANY OF ITS TOP AUTHORS AND EDITORS AND MANY AGENTS VIRTUALLY STOPPED COMING BY WITH NEW BOOKS AMONG THE BESTSELLING AUTHORS WHO FLED RECENTLY WERE NOVELIST JOHN IRVING AND MYSTERY WRITER PATRICIA CORNWELL THERE IS A LOT OF WORK AHEAD OF US AND YES WE'RE GOING TO HAVE TO FIND AND HIRE SOME QUALITY EDITORS SAID GORDON L JONES CORPORATE VICE PRESIDENT AND GROUP HEAD OF HEARST BOOKS BUT I WALKED THE HALLS AFTER THE ANNOUNCEMENT AND PEOPLE ARE VERY EXCITED IT WAS LIKE THE GIANTS WON THE SUPER BOWL AGENTS COME TO WHERE THERE'S MONEY AND THEY'LL COME BACK FRANK A BENNACK JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CLOSELY HELD HEARST SAID THE MULTIMEDIA POTENTIAL FOR THE BOOK DIVISION WAS A MAJOR FACTOR IN DECIDING TO KEEP IT BOTH OF THESE BOOK COMPANIES HAVE AN ILLUSTRIOUS HERITAGE SAID MR BENNACK AND WE INTEND TO BUILD AN EVEN MORE ILLUSTRIOUS REPUTATION FOR THEM IN THE FUTURE EDITORS ON THE STAFF SAY THEY ARE IMMENSELY RELIEVED BECAUSE THE PUTNAM MERGER WOULD HAVE MEANT CONSIDERABLE STAFF CUTBACKS SAID EDITOR ANN BRAMSON THIS IS A GROUP OF VERY TALENTED PEOPLE WHO FEEL WE CAN GO ON NOW AND MAKE UP FOR LOST TIME 9402280041 940228 BUSINESS BRIEF WESTMORELAND COAL CO LOSS WIDENED IN 4TH PERIOD COMPANY LIKELY TO SELL ASSET WESTMORELAND COAL CO REPORTED A WIDENED FOURTHQUARTER LOSS OF 923 MILLION RESULTING PARTLY FROM ONETIME CHARGES AND SAID IT IS LIKELY TO SELL A MAJOR ASSET BECAUSE IT MAY RUN LOW ON CASH THE COMPANY ALSO DISCLOSED IT WAS IN VIOLATION OF FINANCIAL COVENANTS IN A NUMBER OF LOANS INCLUDING A REVOLVING LOAN AGREEMENT AND A 27 MILLION LETTER OF CREDIT AND IS TALKING TO ITS LENDERS THE COAL COMPANY BASED IN PHILADELPHIA SAID THE LOSS AMOUNTED TO 1344 A SHARE THAT COMPARED WITH A LOSS OF 365 MILLION OR 543 A SHARE A YEAR EARLIER WESTMORELAND SAID THE MOSTRECENT RESULTS INCLUDED 79 MILLION IN CHARGES FOR THE WRITE OFF OF SOME MINING OPERATIONS AND COAL RESERVES AND PROVISIONS FOR THE TERMINATION OF CERTAIN OPERATIONS AND EMPLOYEES FOURTHQUARTER REVENUE TOTALED 1248 MILLION DOWN 4 FROM 1302 MILLION A YEAR EARLIER 9402280039 940228 INTERNATIONAL BRIEF AB ASTRA PRETAX PROFIT INCREASED 20 SALES ROSE 50 IN 4TH PERIOD AB ASTRA SAID ITS EARNINGS ROSE 20 IN THE FOURTH QUARTER AND ALTHOUGH THE RATE OF PROFIT GROWTH WAS SLOWER THAN RECENT CURRENCYDRIVEN QUARTERLY GAINS IT STILL KEPT THE SWEDISH CONCERN AMONG THE WORLD'S FASTEST GROWING DRUG COMPANIES IN THE FOURTH QUARTER PRETAX PROFIT CLIMBED TO 204 BILLION KRONOR 2558 MILLION FROM 17 BILLION KRONOR AS SALES JUMPED 50 TO 652 BILLION KRONOR ASTRA'S SALES SURGE WAS FUELED BY ANTIULCER DRUG LOSEC AND ANTIASTHMA MEDICINE PULMICORT CHIEF EXECUTIVE HAKAN MOGREN PREDICTED THAT ASTRA'S SALES WILL CONTINUE TO RISE FASTER THAN THE GLOBAL PHARMACEUTICAL MARKET BUT SALES AND PROFIT GROWTH THIS YEAR WON'T MATCH HEADY LEVELS OF 1993 9402280038 940228 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 3/16 LOW 3 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 345 30 TO 59 DAYS 355 60 TO 89 DAYS 360 90 TO 129 DAYS 367 130 TO 149 DAYS 372 150 TO 179 DAYS 378 180 TO 239 DAYS 385 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 350 30 DAYS 362 60 DAYS 369 90 DAYS CERTIFICATES OF DEPOSIT 280 ONE MONTH 288 TWO MONTHS 293 THREE MONTHS 315 SIX MONTHS 342 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 341 ONE MONTH 358 THREE MONTHS 385 SIX MONTHS BANKERS ACCEPTANCES 346 30 DAYS 354 60 DAYS 360 90 DAYS 370 120 DAYS 376 150 DAYS 383 180 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 3/4 THREE MONTHS 4 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 598 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY FEBRUARY 22 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 333 13 WEEKS 353 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 735 60 DAYS 741 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 731 60 DAYS 740 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 540 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 9402280037 940228 BUSINESS BRIEFS W R BERKLEY CORP SAID IT FORMED GREAT RIVER INSURANCE CO LOCATED IN MISSISSIPPI THE REGIONAL PROPERTY AND CASUALTYINSURANCE COMPANY WILL BECOME LICENSED IN OTHER SOUTHEASTERN STATES MCCORMICK & CO SPARKS MD SAID IT FORMED A JOINT VENTURE WITH PT RODAMAS JAKARTA INDONESIA TO MAKE AND MARKET SEASONINGS AND SAUCES BY YEAR END THE COMPANY WILL BE NAMED PT MCCORMICK INDONESIA AND WILL BE BASED IN JAKARTA DBL LIQUIDATING TRUST COMPLETED ITS PREVIOUSLYANNOUNCED SALE OF MERCHANTBANKING UNIT NEW STREET CAPITAL CORP TO GREEN CAPITAL INVESTORS LP FOR 174 MILLION IN CASH AND 35 MILLION IN SECURED SHORTTERM NOTES DBL ALSO ADMINISTERS THE REMAINING ASSETS OF FORMER INVESTMENTBANKING FIRM DREXEL BURNHAM LAMBERT INC IPSCO INC OF REGINA SASKATCHEWAN HAS DECIDED AGAINST IOWA AS THE SITE FOR ITS PLANNED 360 MILLION STEEL MINIMILL THE COMPANY SAID IT IS NOW CONSIDERING TWO OTHER STATES WHERE LEGISLATION IS NOT REQUIRED TO PURCHASE THE LAND WHERE THE MINIMILLS WOULD BE BUILT ALTHOUGH A DECISION WILL BE MADE BY THE END OF MARCH A COMPANY SPOKESWOMAN WOULD NOT IDENTIFY THE SITES BEING CONSIDERED GOVPX A PROVIDER OF US TREASURY SECURITIES PRICE AND TRADING DATA PLANS TO MAKE AVAILABLE LATER THIS YEAR DATA FROM LIBERTY BROKERAGE INVESTMENT CORP A MAJOR INTERDEALER BROKER GOVPX IS OWNED BY PRIMARY DEALERS IN US TREASURY SECURITIES AS WELL AS FOUR INTERDEALER BROKERS INCLUDING LIBERTY 9402280036 940225 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 9402280035 940228 WHO'S NEWS QUICK & REILLY GROUP INC FORMS OFFICE OF PRESIDENT NEW YORK QUICK & REILLY GROUP INC ANNOUNCED THE FORMATION OF AN OFFICE OF THE PRESIDENT WHICH WILL COMPRISE THE PRESIDENTS OF THE COMPANY'S THREE SUBSIDIARIES AS WELL AS THE GROUP PRESIDENT EFFECTIVE TOMORROW THE OFFICE WILL INCLUDE LESLIE C QUICK III 40 YEARS OLD NEW PRESIDENT OF US CLEARING CORP THOMAS C QUICK 39 PRESIDENT OF QUICK & REILLY INC PETER QUICK 38 NEW PRESIDENT AND CHIEF OPERATING OFFICER OF QUICK & REILLY GROUP AND CHRISTOPHER C QUICK 37 PRESIDENT OF JJC SPECIALIST CORP THE FINANCIAL SERVICES HOLDING COMPANY SAID THE OFFICE IS BEING FORMED TO ENSURE THAT EACH EXECUTIVE GAINS GREATER KNOWLEDGE OF THE THREE BUSINESSES EACH EXECUTIVE WILL EVENTUALLY SERVE AS GROUP PRESIDENT WITH THE GOAL OF SELECTING A CHAIRMAN TO EVENTUALLY SUCCEED THEIR FATHER LESLIE C QUICK JR 68 9402280034 940228 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK LINDA KOCH LORIMER 41 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PUBLISHING AND INFORMATION SERVICES COMPANY TEMPORARILY INCREASING THE BOARD TO 15 MEMBERS A RETIREMENT IS EXPECTED IN APRIL MS LORIMER IS SECRETARY OF YALE UNIVERSITY 9402280033 940228 BUSINESS BRIEF HEWLETTPACKARD CO NEW LINE OF INKJET PRINTERS TO BE INTRODUCED THIS WEEK HEWLETTPACKARD CO IS EXPECTED TO INTRODUCE A NEW LINE OF INKJET PRINTERS THIS WEEK CONTINUING ITS STRATEGY OF RAPIDFIRE PRODUCT INTRODUCTIONS TO KEEP ITS COMMANDING SHARE OF THE PERSONALCOMPUTER PRINTER MARKET THE PALO ALTO CALIF COMPUTER CONCERN WHICH DOMINATES THE FASTGROWING MARKET FOR INKJET PRINTERS PLANS TO REPLACE ITS EXISTING LINE WITH PRINTERS THAT OFFER PRINTING RESOLUTION OF 600 DOTS AN INCH TWICE THE RESOLUTION OF ITS EXISTING INKJET MODELS A NEW COLOR VERSION WILL ALSO INCLUDE SOFTWARE THAT HP SAYS WILL PROVIDE MORE ACCURATE COLOR PRINTING A MONOCHROME VERSION OF THE NEW PRINTER THE DESKJET 520 WILL LIST FOR 365 THE SAME PRICE AS THE MODEL IT REPLACES THE DESKJET 500 A COLOR VERSION THE DESKJET 560C WILL LIST FOR 716 AND WILL REPLACE HP'S DESKJET 550C BOTH PRINTERS WILL BE AVAILABLE IN VERSIONS THAT WORK WITH APPLE COMPUTER INC'S MACINTOSH COMPUTERS HP ALSO PLANS TO CUT THE LIST PRICE OF ONE OF ITS EXISTING COLOR PRINTERS FOR THE MACINTOSH THE DESKWRITER 550C TO 599 FROM 719 9402280032 940228 THE OUTLOOK STOCK DROP COULD HAVE A BROADER IMPACT NOW BY FRED R BLEAKLEY NEW YORK FOR ANYONE BEGINNING TO WONDER WHETHER THE JITTERY STOCK MARKET HAS ENTERED A CORRECTION THE MORE WORRISOME THOUGHT MAY BE THIS WHETHER OR NOT IT HAPPENS NOW OR LATER A 10 OR 15 DOWNDRAFT IN STOCK PRICES THESE DAYS COULD HAVE A SIZABLE IMPACT ON THE HEALTH OF THE ECONOMY MUCH MORE SO THAN EVEN THE 23 MARKET CRASH IN 1987 ECONOMISTS SAY THE REASON FAR MORE HOUSEHOLD WEALTH WHETHER SAVINGS OR PENSIONFUND MONEY IS TIED UP IN THE MARKET TODAY A DROP IN STOCK PRICES WOULD PROBABLY MAKE INVESTORS FEEL PROPORTIONATELY POORER PARTICULARLY THE MANY NEOPHYTE STOCKPICKERS WHO HAVE FLOODED INTO EQUITIES IN RECENT MONTHS THAT IN TURN COULD LEAD TO A REFLEXIVE AND SHARP CURTAILMENT IN SPENDING AND IF SPENDING DROPS WATCH THE ECONOMY SAG A STOCK MARKET CORRECTION OF 10 TO 15 WOULD KNOCK ONE PERCENTAGE POINT OFF OUR CURRENT ESTIMATE OF 3 ECONOMIC GROWTH FOR THIS YEAR SAYS IRWIN KELLNER CHIEF ECONOMIST AT CHEMICAL BANK IT WOULD TURN AROUND A RISE OF 25 IN CONSUMER SPENDING TO NO CHANGE FROM LAST YEAR AND THAT IS TO SAY NOTHING OF HOW IT COULD DAMAGE CORPORATE SPENDING WHICH LATELY HAS BEEN BUOYED BY THE EASE OF RAISING CAPITAL IN THE HIGHFLYING EQUITY MARKETS CALL IT THE REVERSEWEALTH EFFECT PARTICULARLY FOR PEOPLE WHOSE COMPANIES HAVE GIVEN THEM THE RESPONSIBILITY FOR INVESTING THEIR OWN RETIREMENT FUNDS AND WHO ARE USING THE OPPORTUNITY TO JUMP WHOLESALE INTO STOCKS A HIT TO THEIR FINANCIAL ASSETS CREATES A MORE NEGATIVE MOOD TOWARD SPENDING SAYS SUSAN STERNE AN ECONOMIST WHO SPECIALIZES IN CONSUMER BEHAVIOR THAT WOULD PROBABLY BE ESPECIALLY SO FOR MANY OF THE 77 MILLION BABY BOOMERS BUYING ALL THOSE MUTUAL FUNDS TODAY STUDY AFTER STUDY SHOWS BABY BOOMERS DON'T FEEL THEY ARE SAVING ENOUGH FOR RETIREMENT SHE SAYS THE FEDERAL RESERVE ESTIMATES THAT AMERICAN HOUSEHOLDS HAD 95 OF THEIR ASSETS INVESTED IN CORPORATE EQUITIES AT THE END OF 1986 AND 87 AT THE END OF 1987 BY THE END OF 1993 THAT FIGURE HAD JUMPED TO 134 NOTABLY THE FED NUMBERS DON'T INCLUDE INVESTMENTS IN MUTUAL FUNDS WHICH LATELY HAVE SOARED TO 693 BILLION AT THE END OF 1993 FROM 181 BILLION AT THE END OF 1987 SINDLINGER & CO A CONSUMERPOLLING FIRM ESTIMATES 61 MILLION INDIVIDUALS OWN STOCKS OR STOCK MUTUAL FUNDS TODAY NINE MILLION MORE THAN IN 1987 AFTER THREE DECADES WHEN HOUSEHOLDS CONSISTENTLY WERE NET SELLERS OF STOCKS THEY HAVE BECOME STEADY BUYERS IN THE 1990S IT IS THE LACK OF EXPERIENCE OF MANY OF THOSE INVESTORS THAT HAS ECONOMISTS WORRIED UNFAMILIARITY WITH THE MARKET COULD FIRST LEAD TO TOO RISKY AN INVESTMENT AND THEN TO TOO SEVERE A REACTION IF THE MARKET BUCKLES IN A RECENT STUDY OF 401K PLAN PARTICIPANTS JOHN HANCOCK MUTUAL LIFE INSURANCE CO FOUND THAT HALF OF THE RESPONDENTS THINK THAT STOCKS ARE HELD IN MONEYMARKET FUNDS AND ONLY 26 THINK THE BEST TIME TO BUY BONDS IS WHEN INTEREST RATES ARE EXPECTED TO DECREASE AND PRICES RISE FULLY 51 SAID THEY DON'T KNOW ENOUGH ABOUT THE MARKETS TO PROPERLY MANAGE THEIR RETIREMENT SAVINGS BUT MANY OF THE MARKET'S NEWCOMERS KNOW EXACTLY WHAT THEY WOULD DO IF STOCKS TUMBLE YOU FEEL MORE SECURE WHEN YOU HAVE A NEST EGG TO FALL BACK ON SAYS ROSE HITER AN ADMINISTRATIVE ASSISTANT WITH TELLABS OPERATIONS INC AN ILLINOIS TELECOMMUNICATIONS COMPANY MS HITER MOVED 15000 OF HER 401K PENSION PLAN ASSETS INTO STOCK MUTUAL FUNDS IN THE MIDDLE OF LAST YEAR AND IT IS NOW WORTH ABOUT 20000 LIKE MANY INVESTORS SHE SAYS THAT IF THAT VALUE DECLINED SHE WOULD CURTAIL HER SPENDING THERE IS PLENTY OF PRECEDENCE FOR THAT SORT OF REACTION FOLLOWING MAJOR STOCKPRICE DECLINES IN THE 1950S AND 1960S INVESTORS OFTEN CANCELED VACATION PLANS PUT OFF HOME RENOVATIONS AND SAVED MORE DOWNTURNS IN THE MARKET IN 1953 AND 1957 WERE BLAMED FOR HOLDING BACK AUTO SALES FOR MUCH OF THE DECADE AND ECONOMIC MALAISE IN THE 1970S BEGAN IN PART WHEN THE BEAR WALKED WALL STREET IN 1969 THE PERCENTAGE OF HOUSEHOLD WEALTH IN EQUITIES AT THE END OF 1968 EXCLUSIVE OF MUTUAL FUNDS HAD SOARED TO 26 AFTER THE 1987 MARKET CRASH THE ECONOMY PAUSED BUT QUICKLY PICKED UP STEAM IN PART BECAUSE CONSUMER SPENDING HAD BEEN ROBUST BEFORE THE COLLAPSE AND THE AVERAGE INDIVIDUAL'S EXPOSURE TO THE MARKET WAS LOWER THE FED ALSO PUMPED MONEY INTO THE ECONOMY TODAY HOWEVER THE SPENDING MOMENTUM IS NOT AS STRONG AND THE ECONOMY LAST QUARTER'S SURGE NOTWITHSTANDING IS STILL LIFTING ITSELF OUT OF A RECESSION HIGHER TAXES THIS YEAR FOR SOME WILL SHAVE THE WILLINGNESS TO SPEND AND THE VALUE OF REAL ESTATE WHICH IS THE AVERAGE INDIVIDUAL'S LARGEST ASSET STILL HASN'T RECOVERED FROM THE PLUNGE IN PROPERTY VALUES IN THE EARLY 1990S MANY PEOPLE STILL FEEL HOUSE POOR A DROP IN STOCK PRICES THEREFORE HAS A GREATER LIKELIHOOD OF SEVERELY SHAKING THE STOCKINVESTOR POOL THE RESULTING RIPPLES MIGHT WELL BE FELT FAR AND WIDE 9402280031 940228 ORDERS INCREASED FOR MACHINE TOOLS BY 8 IN JANUARY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS CLIMBED 8 IN JANUARY FROM DECEMBER AS MANUFACTURERS CONTINUED TO SEEK HIGHER PRODUCTIVITY AND LOWER COSTS ORDERS TOTALED 3561 MILLION LAST MONTH UP FROM 3304 MILLION IN DECEMBER ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY GROUP COMPARED WITH JANUARY 1993 ORDERS MORE THAN DOUBLED FROM 1756 MILLION BUT ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC IN NEW YORK NOTED THAT THE JANUARY 1993 ORDER LEVEL REPRESENTED ONE OF THE YEAR'S WEAKER MONTHS STILL THE MOSTRECENT JANUARY LEVEL WAS CONSIDERED STRONG IT JUST VERIFIES EVERYTHING THAT YOU'RE READING ABOUT THE STRENGTH OF MANUFACTURING THE STRENGTH OF DURABLE GOODS MR LUSTGARTEN SAID MOREOVER ANALYSTS SAID ORDERS ARE BROADENING BEYOND THOSE FROM AUTOMOTIVE MAKERS WHICH PROPELLED ORDERS LAST YEAR ALL THE MACHINETOOL MAKERS ARE TELLING ME IT'S SPREADING OUT TO THE GENERAL INDUSTRIAL SECTOR SAID ALEXANDER P PARIS AN ANALYST WITH BARRINGTON RESEARCH IN BARRINGTON ILL MANUFACTURERS ARE BUYING MACHINE TOOLS IN PART BECAUSE THEY AID IN BOOSTING PRODUCTIVITY AND LOWERING COSTS THE ECONOMIC RECOVERY ALSO IS INCREASING DEMAND YOU BUY MACHINE TOOLS EITHER WHEN YOU'RE EXPANDING OR YOU'RE BRINGING ON NEW PRODUCTS SAID THOMAS G BURNS JR AN ANALYST AT NATWEST SECURITIES IN NEW YORK IN JANUARY DOMESTIC ORDERS SHOWED THE MOST STRENGTH THEY CLIMBED 18 FROM DECEMBER TO 3452 MILLION FROM 2937 MILLION AND MORE THAN DOUBLED FROM JANUARY 1993'S 1411 MILLION ORDERS FOR EXPORT HOWEVER REMAINED WEAK THEY PLUNGED 70 FROM DECEMBER TO 109 MILLION FROM 357 MILLION COMPARED WITH JANUARY 1993 ORDERS FOR EXPORT DROPPED 68 FROM 345 MILLION AN INDEX COMPILED BY THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION FELL 27 IN JANUARY FROM DECEMBER AND 6 FROM THE YEAREARLIER MONTH AN ASSOCIATION SPOKESMAN SAID THE DECLINE REPRESENTED A LULL IN ORDERS AFTER A YEAREND SURGE THE INDEX IS BASED ON ORDERS OVER A THREEYEAR PERIOD COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES METALFORMING MACHINE ORDERS COMPARATIVE SHIPMENT OF METALCUTTING MACHINES METALFORMING MACHINE SHIPMENTS 9402280030 940228 BUSINESS BRIEF TOPS APPLIANCE CITY INC FISCAL 4THQUARTER NET FELL 39 ON DISAPPOINTING SALES TOPS APPLIANCE CITY INC EDISON NJ SAID FISCAL FOURTHQUARTER NET INCOME PLUNGED 39 PARTLY BECAUSE OF DISAPPOINTING HOLIDAY SALES AND LOWER PROFIT RESULTING FROM INCREASED COMPETITION THE APPLIANCE AND CONSUMERELECTRONICS RETAILER SAID NET INCOME FELL TO 24 MILLION OR 34 CENTS A SHARE FROM A YEAREARLIER PRO FORMA 39 MILLION OR 55 CENTS A SHARE SALES AND SERVICE REVENUE ROSE TO 1326 MILLION FROM 1157 MILLION THE COMPANY WENT PUBLIC LAST AUGUST AT 14 A SHARE PHILIP M SCHMIDT PRESIDENT AND CHIEF OPERATING OFFICER SAID SALES IN NEW STORES RESULTED IN AN INCREASE IN SALES FOR THE FOURTH QUARTER OF 30 BUT SALES IN STORES OPEN MORE THAN A YEAR FELL 17 IN PART BECAUSE OF THE TRANSFER OF SALES TO A NEW STORE IN UNION NJ AND A CHANGE IN THE END OF THE FISCAL YEAR TO DEC 28 FROM DEC 31 FULLYEAR EARNINGS FELL 33 TO 47 MILLION OR 65 CENTS A SHARE FROM 69 MILLION OR 97 CENTS A SHARE SALES AND SERVICE REVENUE ROSE 20 TO 4114 MILLION FROM 344 MILLION 9402280029 940228 BUSINESS BRIEF UNION BANK OF SWITZERLAND NET INCOME SOARED 69 TO 158 BILLION IN 1993 UNION BANK OF SWITZERLAND ZURICH SAID FRIDAY ITS 1993 GROUP NET INCOME SOARED 69 TO 2268 BILLION SWISS FRANCS 158 BILLION FROM 1343 BILLION FRANCS A YEAR EARLIER THE BANK ALSO SAID IT PLANS TO RAISE ITS DIVIDEND ON 1993 EARNINGS WHICH ROSE IN LINE WITH FORECASTS THE COMPANY SAID IT DOESN'T FORESEE A SIMILAR PROFIT RISE FOR 1994 UBS'S CASH FLOW ROSE 41 IN 1993 TO 4507 BILLION FRANCS FROM 3191 BILLION FRANCS IN 1992 WHILE ASSETS ROSE 17 TO 3113 BILLION FRANCS FROM 2667 BILLION FRANCS IN 1992 THE COMPANY SAID THE DIVIDEND WILL INCREASE 3 FRANCS A BEARER SHARE TO 32 FRANCS AND 60 CENTIMES A REGISTERED SHARE TO 640 FRANCS IT ALSO PLANS SUBSCRIPTION RIGHTS EQUAL TO ABOUT 1340 FRANCS A BEARER SHARE AND 345 FRANCS A REGISTERED SHARE THE BANK SAID THE RIGHTS AREN'T A CAPITAL INCREASE BUT ARE MEANT TO ACKNOWLEDGE ITS EXTRAORDINARY SUCCESS LAST YEAR MEANWHILE THE COMPANY SAID THAT PROVISIONS IN 1993 REACHED A RECORD 2231 BILLION FRANCS BUT THAT IN 1994 PROVISIONING NEEDS SHOULD DECLINE 9402280028 940228 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE BIG BOARD BEGAN TRADING INITIAL OFFERINGS IN BEAZER HOMES USA INC TUCKER GA A BUILDER OF SINGLEFAMILY HOMES UNDER BZN DELAWARE GROUP GLOBAL DIVIDEND & INCOME FUND INC PHILADELPHIA A CLOSEDEND FUND DGF SOUTHERN AFRICA FUND INC NEW YORK A CLOSEDEND FUND SOA AND WORLDWIDE DOLLARVEST FUND INC PLAINSBORO NJ A CLOSEDEND FUND WDV IT ALSO ADDED ALBEMARLE CORP RICHMOND VA AN ETHYL CORP SPINOFF OF ITS CHEMICALS BUSINESS UNDER ALB THE AMERICAN STOCK EXCHANGE LISTED AMEX HONG KONG 30 INDEX PUT WARRANTS ISSUED BY THE SWEDISH EXPORT CREDIT CORP AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING COMMON SHARES OF SURETY CAPITAL CORP THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON THE CBOE GAMING INDEX ON FEB 28 THE INDEX IS COMPRISED OF 15 DOMESTIC COMPANIES THAT OPERATE CASINOS OR MANUFACTURE GAMING EQUIPMENT THE CBOE SAID IT WILL BEGIN TRADING OPTIONS THIS WEEK ON THE ADR'S OF COMPANIA DE TELEFONOS DE CHILE SA AND ON TELEBIT CORP IT BEGAN TRADING OPTIONS LAST WEEK ON WANG LABORATORIES INC THE NASDAQ NATIONAL MARKET DIDN'T PROVIDE ANY NEW LISTINGS FOR THE WEEK 9402280027 940228 WHO'S NEWS YANKEE ENERGY SYSTEM INC YANKEE ENERGY SYSTEM INC MERIDEN CONN PHILIP T ASHTON PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED CHAIRMAN SUCCEDING WILLIAM O BAILEY WHO RETIRED 9402280026 940228 COMMODITIES COMMODITYPRICE INFLATION MAY BE REAL BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COULD IT BE THE REAL THING THIS TIME FOR THE PAST YEAR TRADERS AND ECONOMISTS HAVE RUSHED TO DECLARE THE START OF AN UPWARD CYCLE IN COMMODITY PRICES AND A CORRESPONDING UPTURN IN CONSUMERPRICE INFLATION ONLY TO SEE BRIEF COMMODITYPRICE RALLIES FALTER NOW ONCE AGAIN COMMODITY PRICES ARE ON THE RISE BUT THIS TIME THEY ARE ACCOMPANIED BY SURGES IN OTHER INDICATORS SUCH AS THE LEADING INFLATION INDEX AN INFLATIONMONITORING DEVICE DEVELOPED BY COLUMBIA UNIVERSITY'S CENTER FOR BUSINESS CYCLE RESEARCH ALL THE COMPONENTS OF THE INFLATION INDEX HAVE GONE UP OVER THE PAST MONTH SAYS ANIRVAN BANERJI RESEARCH ECONOMIST AT THE CENTER IF ALL OF THEM ARE GOING UP IT LOOKS LIKE IT'S NOT JUST COMMODITY PRICES MISLEADING US AGAIN I THINK WE WILL GET AN UPTICK IN INFLATION BEFORE THE YEAR IS OUT A TYPICAL SHIFT IN ECONOMIC CYCLES ECONOMISTS SAY BEGINS WITH AN INCREASE IN INDUSTRIAL ACTIVITY THAT GAINS MOMENTUM FROM A CORRESPONDING PSYCHOLOGICALLY INSPIRED SHIFT OF INVESTMENT MONEY INTO COMMODITIES IN TIME COMMODITYPRICE INFLATION TENDS TO TRANSLATE TO CONSUMERPRICE INFLATION WHILE THERE ARE STILL PLENTY OF SKEPTICS SOME ANALYSTS ARE ARGUING THAT IN THE US AT LEAST THE EARLY STAGES OF THIS PROCESS APPEAR TO BE IN PROGRESS IN RECENT MONTHS THE PRICES OF INDUSTRIAL COMMODITIES ESPECIALLY BASE METALS AND TEXTILES HAVE JUMPED SHARPLY ACCELERATING THE PRICE GAINS IS A HUGE FLOW OF MONEY INTO COMMODITIES FROM HEDGE FUNDS AND OTHER BIG INVESTORS WARY OF THE TOPPING OF THE US STOCK MARKET AND TRYING TO POSITION THEMSELVES TO PROFIT FROM A SHIFTING ECONOMIC CYCLE AT SOME POINT IT BECOMES A SELFFULFILLING PROPHECY SAYS WILLIAM BYERS DIRECTOR OF FUTURES RESEARCH AT BEAR STEARNS & CO WE ARE GOING INTO A CYCLE WHEN COMMODITIES WILL RECEIVE MUCH MORE INVESTMENT ATTENTION AND THUS COMMODITY PRICES PROBABLY WILL RISE ONE HYPERSENSITIVE INDICATOR OF COMMODITYPRICE SHIFTS IS THE JOURNAL OF COMMERCE INDEX OF 18 INDUSTRIAL COMMODITIES A FAVORITE AMONG ECONOMISTS AS AN INFLATION PREDICTOR MR BANERJI WHO HELPED DEVELOP THE INDEX SEES AN IMPORTANT DIFFERENCE IN ITS PERFORMANCE IN RECENT WEEKS FROM ITS PERFORMANCE DURING FALSE COMMODITYPRICE RALLIES LAST SPRING AND SUMMER FOR THE FIRST TIME IN MONTHS MR BANERJI SAYS THE GROWTH RATE OF THE JOURNAL OF COMMERCE INDEX HAS SHIFTED TO POSITIVE FROM NEGATIVE THIS SHOWS US THAT DEFLATION HAS STOPPED HE SAYS AND NOW WE'RE SEEING THE FIRST SIGNS OF COMMODITYPRICE INFLATION OTHERS HOWEVER BELIEVE THAT SIGNIFICANT RESISTANCE TO A BROADBASED COMMODITYPRICE RALLY MAY COME FROM ECONOMIC WEAKNESS OVERSEAS FOR INSTANCE EDWARD C YARDENI CHIEF ECONOMIST FOR CJ LAWRENCE & CO SAYS THE RECENT PRICE GAINS ARE MAINLY THE RESULT OF STRENGTH IN THE US ECONOMY STEEL PRICES HAVE BEEN ONE OF THE STRONGEST COMPONENTS OF RAW INDUSTRIAL COMMODITY INDEXES AND THAT CLEARLY IS RELATED TO THE INCREASE IN ACTIVITY BY THE US AUTO INDUSTRY HE SAYS YET MR YARDENI DOESN'T BELIEVE THE ECONOMIES OF EUROPE AND THE FAR EAST ARE STRONG ENOUGH YET TO SUSTAIN THE RALLY I THINK THE GERMAN ECONOMY HAS HIT BOTTOM AND PROBABLY SHOULD START TO RECOVER SOON HE SAYS BUT I DON'T SEE ANY SIGNS THAT THE JAPANESE ECONOMY HAS HIT BOTTOM I THINK THIS CONTINUING WEAKNESS MAY CHOKE OFF SOME OF THE COMMODITYPRICE UPSWING ONE ODD EXCEPTION TO THE RECENT COMMODITYPRICE GAINS IS THE PRICE OF GOLD WHICH TESTED 400 AN OUNCE LATE LAST YEAR BUT HAS BEEN FLAT SINCE THEN USUALLY GOLD IS REGARDED AS A GOOD INDICATOR OF INFLATION FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ACKNOWLEDGED AS MUCH LAST WEEK DURING HIS SEMIANNUAL REPORT TO CONGRESS AND LATELY LACKLUSTER DEMAND FOR GOLD FROM SUCH FAR EAST COUNTRIES AS CHINA AND JAPAN HAS SAPPED THE PRECIOUS METAL'S STRENGTH THE SAME ISN'T TRUE OF BASE METALS HOWEVER THE PRICES OF NICKEL ALUMINUM AND COPPER ARE UP 48 27 AND 17 RESPECTIVELY SINCE LATE LAST YEAR THE WHOLE BASE METALS COMPLEX HAS SHIFTED FROM A SUPPLY SURPLUSWEAKENING PRICE ENVIRONMENT TO A SUPPLY DEFICITSTRENGTHENING PRICE ENVIRONMENT SAYS FRED DEMLER METALS ECONOMIST FOR E D & F MAN IT DOES SUGGEST INFLATION PRESSURE AT LEAST FROM THE INDUSTRIAL METALS MORE SUCH PRESSURE HAS COME FROM TEXTILE PRICES ESPECIALLY COTTON A GLOBAL SHORTAGE OF EXPORTQUALITY COTTON HAS HELPED PUSH COTTON PRICES UP MORE THAN 40 IN FOUR MONTHS TO 7885 CENTS A POUND FOR THE ACTIVELY TRADED MARCH FUTURES CONTRACT FROM 5615 CENTS IN NOVEMBER SAYS SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON THE STRENGTH IN METAL AND TEXTILE PRICES ACCOUNTS FOR MUCH OF THE SURGE IN THE JOURNAL OF COMMERCE INDUSTRIAL INDEX MR BANERJI SAYS THERE ARE THREE SUBCOMPONENTS OF THE INDEX TEXTILES METALS AND MISCELLANEOUS A CATEGORY THAT INCLUDES RUBBER TALLOW PLYWOOD AND CRUDE OIL HE SAYS METALS ARE CLEARLY UP TEXTILES ARE UP ESPECIALLY COTTON BUT MISCELLANEOUS COMPONENTS AREN'T UP AT ALL IT NEEDS TO GET A LITTLE MORE WIDESPREAD BEFORE WE CAN SAY DEFINITELY THIS IS IT AND ALTHOUGH MR BYERS BELIEVES THAT COMMODITY PRICES ARE NOW DESTINED TO MOVE BROADLY HIGHER HE THINKS SOME COMMODITIES ARE BETTER BETS THAN OTHERS THE INTELLIGENT APPROACH WOULD BE TO FOCUS ON THE MARKETS THAT HAVE AT LEAST A SEMIATTRACTIVE SUPPLYANDDEMAND PICTURE HE SAYS THAT WOULD INCLUDE COTTON GRAINS SUGAR AND BASE METALS 9402280025 940228 ECONOMY MORTGAGE RATES RISE AGAIN BUT SALES OF NEW EXISTING HOMES AREN'T AFFECTED BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL RISING MORTGAGE RATES WHILE THROWING COLD WATER ON THE ALREADY FADING REFINANCING BOOM AREN'T YET HAVING AN APPRECIABLE EFFECT ON SALES OF EITHER NEW OR EXISTING HOMES HOUSING ANALYSTS SAID RATES ON CONVENTIONAL 30YEAR MORTGAGES ROSE LAST WEEK TO 744 FROM 725 THE WEEK BEFORE MORE THAN HALF A PERCENTAGE POINT ABOVE A 25YEAR LOW REACHED LAST OCTOBER ACCORDING TO HSH ASSOCIATES A BUTLER NJ PUBLISHER OF MORTGAGE DATA BUT RATES WHICH TEND TO FOLLOW THE BOND MARKET AND HAVE CLIMBED ON INFLATIONARY WORRIES ARE STILL HISTORICALLY LOW MOST ANALYSTS EXPECT RATES TO EITHER STAY FLAT OR GRADUALLY RISE TOWARD 8 THIS YEAR JONATHAN GRAY A HOUSINGINDUSTRY ANALYST AT SANFORD C BERNSTEIN & CO SAID ASCENDING RATES ARE A SIGN OF AN IMPROVING ECONOMY AND THAT ANY DAMPENING EFFECTS ON THE HOUSING MARKET WOULD BE OFFSET BY AN INCREASE IN PEOPLE WITH JOBS AND CONFIDENCE WHO ARE LOOKING TO BUY HOMES THE NUMBERS OF HOMES SELLING WON'T CHANGE MUCH HE SAID I DON'T SEE STARTS OR EXISTINGHOME SALES SUFFERING ITS MAIN IMPACT IS ON REFINANCINGS WHICH HAVE BEEN EXQUISITELY SENSITIVE TO CHANGES INDEED THE MORTGAGE BANKERS ASSOCIATION'S INDEX OF REFINANCING ACTIVITY LAST WEEK FELL TO 8794 FROM 10127 THE WEEK BEFORE THE INDEX PEAKED IN SEPTEMBER AT 17273 AND SLID AT THE END OF THE YEAR BEFORE PICKING UP RECENTLY A RATE OF 100 IS CONSIDERED NORMAL AND ANYTHING OVER 700 IS CONSIDERED A BOOM MR GRAY SAID HE IS PROJECTING A 60 DROP IN REFINANCING ACTIVITY THIS YEAR TO 210 BILLION FROM THE RECORD 535 BILLION LAST YEAR BUT AT THE SAME TIME THAT THE REFINANCING WAVE SUBSIDES THE NUMBER OF PEOPLE BUYING MORTGAGES FOR THE FIRST TIME IS SURGING SUCH APPLICATIONS ARE EXPECTED TO HIT A RECORD 565 BILLION THIS YEAR VS THE PREVIOUS HIGHWATER MARK OF 495 BILLION LAST YEAR LAST YEAR REFINANCING ACTIVITY AVERAGED 53 AND JUMPED AS HIGH AS 70 OF ALL MORTGAGE APPLICATIONS AS HOMEOWNERS TOOK REPEATED ADVANTAGE OF FALLING RATES TO CUT THEIR MONTHLY PAYMENTS BUT ACCORDING TO THE MORTGAGE BANKERS ASSOCIATION THAT VOLUME HAS FALLEN TO 43 AND CHIEF ECONOMIST DAVID LEREAH PREDICTS FURTHER DECLINES THAT WILL RESULT IN REFINANCING AVERAGING NO MORE THAN 35 OF MORTGAGES THIS YEAR THERE'S BEEN A BIG DROP IN A SHORT PERIOD AND WE'RE GOING TO SEE FURTHER DROPS HE SAID MOST ANALYSTS AGREE THAT A LARGE SPIKE IN RATES WOULD STYMIE THE HOUSING RECOVERY BUT AS MR GRAY SAID WE'RE HUNDREDS OF BASIS POINTS AWAY FROM THAT A BASIS POINT IS A HUNDREDTH OF A PERCENTAGE POINT STILL HOME BUILDERS ARE CONCERNED PHILIP DION THE CHAIRMAN AND CHIEF EXECUTIVE AT DEL WEBB CORP SAID THAT BUILDERS HAVE ALREADY BEEN PASSING ON THE COSTS OF RISING TIMBER EXPENSES TO BUYERS AND THAT ESCALATING RATES COULD PRICE MANY PEOPLE OUT OF THE MARKET THE POTENTIAL EXISTS FOR A VERY SIGNIFICANT NEGATIVE REACTION BY THE HOME BUYER HE SAID THE FACT REMAINS THAT THE MONTHLY MORTGAGE PAYMENT IS THE BOTTOM LINE SOMETIMES ALL IT TAKES IS 25 OR 50 AND THEY'RE OUT OF THE MARKET IN SUBSTANTIAL QUANTITIES BUT EVEN A FULL ONEPOINT INCREASE IN MORTGAGES WOULD STILL LEAVE MOST HOME BUYERS WITH HISTORICALLY LOW RATES MOST PEOPLE BUYING HOMES HAVE NEVER SEEN INTEREST RATES THIS LOW SAID INGO WINZER EDITOR OF THE LOCAL MARKET MONITOR WHICH TRACKS REGIONAL REAL ESTATE JOHN TUCCILLO CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS SAID THE INFLATIONARY FEARS ARE MISPLACED AND WILL ONLY KEEP INTEREST RATES UP FOR A FEW MONTHS IN THE SUMMER YOU'LL SEE THE RATES COME SLIDING BACK DOWN HE SAID THE MAIN IMPACT OF HIGHER SHORTTERM RATES HE SAID WOULD BE TO DELAY THE SPRING HOMEBUYING SEASON WHICH USUALLY STARTS IN MARCH TO AROUND MAY OR JUNE NEVERTHELESS HE PREDICTS IN 1994 HOUSING WILL STILL POST THE BEST YEAR FOR RESALES SINCE AT LEAST 1978 9402280024 940228 BUSINESS BRIEF CABOT OIL & GAS CORP PACT IS SET TO BUY SUBSIDIARY OF WASHINGTON ENERGY CO CABOT OIL & GAS CORP HOUSTON SAID IT SIGNED AN AGREEMENT TO ACQUIRE A SUBSIDIARY OF WASHINGTON ENERGY CO IN A STOCK TRANSACTION VALUED AT ABOUT 105 MILLION CABOT SAID IT WILL ISSUE ABOUT 21 MILLION COMMON SHARES THAT IT VALUES AT 483 MILLION AND ABOUT 11 MILLION SHARES OF 6 CONVERTIBLE PREFERRED STOCK THAT IT VALUES AT 567 MILLION TO WASHINGTON ENERGY THE PREFERRED STOCK WILL BE CONVERTIBLE INTO 197 MILLION SHARES OF COMMON STOCK AT 2875 A SHARE CABOT ALSO SAID IT WILL ASSUME ABOUT 75 MILLION OF DEBT AS PART OF THE TRANSACTION AND UNDER CERTAIN CIRCUMSTANCES COULD ASSUME AN ADDITIONAL 59 MILLION OF DEBT WHEN THE DEAL IS COMPLETED AS OF JAN 1 THE WASHINGTON ENERGY SUBSIDIARY HAD RESERVES EQUIVALENT TO 230 BILLION CUBIC FEET OF NATURAL GAS CABOT HAD RESERVES EQUIVALENT TO 825 BILLION CUBIC FEET OF NATURAL GAS CABOT IS A NATURALGAS PRODUCER AND MARKETER AND WASHINGTON ENERGY IS A SEATTLEBASED ENERGY CONCERN 9402280023 940228 LETTERS TO THE EDITOR LET IT SNOW LET IT SNOW LET IT SNOW YOUR FEB 16 EDITORIAL WEATHER BLATHER DEMANDS ACCOLADES IT IS TIME TO EXPOSE THIS CULT OF PRECIPITATIONTOLERANCEIMPAIRED METEOROLOGISTS AND NEWS STAFF MEMBERS INHABITING THE AIRWAYS INCREASINGLY DURING THE COMMUTE HOME THROUGH THAT MESS OUT THERE I FIND MYSELF SCANNING THE DIAL IN VAIN FOR A RADIO STATION WITH A PERSONALITY WHO IS NOT EQUATING THE LATEST SNOWFALL WITH A NATURAL DISASTER OF EPIC PROPORTIONS OR EXTOLLING THE VIRTUES OF ESCAPE TO THE SUNSHINE STATES MOST OF THEM SEEM TO HAVE ALREADY SPENT TOO MUCH TIME IN THE SUN WITHOUT A HAT I GREW UP IN MICHIGAN WHERE SNOW IS A WAY OF LIFE I'VE ALSO LIVED IN MINNESOTA WHERE WEATHER IS NOT CONSIDERED HARSH UNLESS THE WIND CHILL CAN CAUSE IMMEDIATE DEATH OR FROSTBITE BUT I'VE ALSO LIVED IN THE WASHINGTON DC AREA WHERE LIFE AND THE GOVERNMENT COME TO A HALT AT THE DROP OF AN ICICLE NOW IN CONNECTICUT WE ARE ENJOYING A WINTER OF OLD A REMNANT FROM YOUTH AND AFTER EIGHT WEEKS OF REAL WINTER MANY OF THE LOCALS HAVE REMEMBERED THEIR ROOTS AND ARE DRIVING FASTER ABOVE 25 MPH WORKING LATER BEYOND NOON AND ARE GETTING ON WITH THEIR LIVES AND EVEN ENJOYING THE WEATHER THIS LEAVES ONLY THE ONAIR PERSONALITIES TO BEMOAN A NATURAL OCCURRENCE AS IF IT WERE YET ANOTHER EXAMPLE OF THE DECLINE OF AMERICA MEANWHILE I'M ENJOYING A HOT TODDY WHILE CONTEMPLATING ANOTHER CALVIN & HOBBESESQUE SNOW SCULPTURE 9402280022 940228 WHAT'S NEWS BUSINESS AND FINANCE MCI PLANS TO ANNOUNCE A MAJOR EXPANSION THAT MAY INCLUDE AN INVESTMENT IN NEXTEL A WIRELESSSERVICES CARRIER PEOPLE FAMILIAR WITH MCI'S PLANS SAID NEXTEL WOULD BE THE LIKELIEST CANDIDATE TO HELP MCI FULFILL ITS STRATEGY TO EXPAND INTO WIRELESS SERVICES AND CHALLENGE ITS RIVAL AT&T WHICH IS SET TO BUY MCCAW CELLULAR THE GROUP OF SEVEN ATTRIBUTED RECENT INCREASES IN LONGTERM INTEREST RATES TO SPREADING ECONOMIC RECOVERY RATHER THAN TO SIGNS OF INFLATIONARY PRESSURE THE MEMBERS DEVOTED MOST OF THE MEETING TO RUSSIAN ECONOMIC REFORM RENEWING SUPPORT FOR THE EFFORT BUT TOOK NO ACTION ON EXCHANGE RATES COMMODITY PRICES ARE RISING AGAIN ACCOMPANIED BY SEVERAL OTHER ECONOMIC INDICATORS THE COMBINATION HAS SOME ECONOMISTS DECLARING THAT A CYCLE OF COMMODITYPRICE INFLATION WHICH TENDS TO TRANSLATE TO CONSUMERPRICE INFLATION SEEMS TO HAVE BEGUN HEDGE FUNDS WILL FACE INTENSE SCRUTINY AS MAJOR CENTRAL BANKS PLAN TO TAKE A HARD LOOK AT THE FUNDS' IMPACT ON GLOBAL BOND MARKETS NATIONAL MONETARY POLICIES AND THE STABILITY OF BANKS THAT LEND TO THE FUNDS FOLLOWING THE HUGE SELLOFF IN GOVERNMENT BOND MARKETS OVER THE PAST FEW WEEKS BOND PRICES RECOVERED A BIT FRIDAY WITH THE LONGTERM TREASURY YIELD ENDING AT 671 BUT THINGS ARE LIKELY TO WORSEN THIS WEEK AS THE BOND MARKET LOOKS TO THE RELEASE OF REVISED FIGURES FOR THE FOURTHQUARTER GROSS DOMESTIC PRODUCT WITH ANXIETY ABOUT INFLATION MORTGAGE RATES ARE CLIMBING FURTHER SLOWING THE FADING REFINANCING BOOM BUT NOT HAVING MUCH OF AN EFFECT ON HOME SALES LAST WEEK CONVENTIONAL 30YEAR MORTGAGE RATES ROSE TO 744 FROM 725 THE PREVIOUS WEEK THE BABY BELLS ARE EXPECTED TO FOCUS ON PURSUING SMALLERSCALE REGIONAL STRATEGIES PUTTING EXISTING PARTNERSHIPS TO WORK AND HUNTING FOR NEW CABLE PROPERTIES NOW THAT THE BELL ATLANTICTCI PACT HAS FALLEN APART ROGERS COMMUNICATIONS' CEO SAID THE US CABLETV RATE CUT HAS SIGNIFICANTLY IMPAIRED THE VALUE OF ITS TAKEOVER TARGET MACLEAN HUNTER MAKING ROGERS'S BID EVEN MORE ATTRACTIVE TCI MADE AN OVERTURE TO BLOCKBUSTER ABOUT AN INVESTMENT IN OR AN ALLIANCE WITH BLOCKBUSTER IF VIACOM'S PLANNED PURCHASE OF BLOCKBUSTER FALLS THROUGH PEOPLE ON WALL STREET SAID A BANKING POLICY TURF BATTLE BETWEEN THE TREASURY AND THE FED WILL BE HASHED OUT IN SENATE PANEL HEARINGS THIS WEEK BENTSEN SAID THAT THE TWO SIDES ARE CLOSE TO AGREEING ON SOME ISSUES ABOUT CONSOLIDATING REGULATION SEAGRAM BOOSTED ITS STAKE IN TIME WARNER TO 131 FROM 117 RENEWING SPECULATION THAT IT MAY CHALLENGE THE COMPANY'S RECENT POISONPILL PLAN AMERICA WEST'S BOARD SELECTED A 220 MILLION BID LED BY INVESTORS WHO ARE MAJOR SHAREHOLDERS OF CONTINENTAL AIRLINES BUT UNSECURED CREDITORS DECLARED SUPPORT FOR A RIVAL OFFER ORDERS FOR MACHINE TOOLS INCREASED 8 TO 3561 MILLION IN JANUARY FROM 3304 MILLION THE PREVIOUS MONTH OLYMPIA & YORK'S US UNIT PLANS TO SELL A 51 STAKE IN AN OFFICE TOWER TO HONG KONG BILLIONAIRE LI KASHING NASDAQ SHORT INTEREST ROSE 28 TO 7018 MILLION SHARES IN MIDFEBRUARY FROM 6824 MILLION IN MIDJANUARY ITS 13TH CONSECUTIVE MONTHLY RECORD BONDS LEHMAN BROTHERS TREASURY INDEX 538906 UP 1236 COMMODITIES OIL 1475 A BARREL OFF 20 CENTS DOW JONES FUTURES INDEX 14541 OFF 079 SPOT INDEX 13127 UP 010 DOLLAR 10485 YEN OFF 010 17100 MARKS OFF 00072 9402280021 940228 BUSINESS BRIEF SCIENTIFICATLANTA INC CONTRACT WORTH 22 MILLION IS ARRANGED WITH BOEING CO SCIENTIFICATLANTA INC ATLANTA SAID IT RECEIVED A 22MILLION CONTRACT FROM BOEING CO'S DEFENSE & SPACE GROUP TO SUPPLY TEST EQUIPMENT IN SUPPORT OF BOEING'S WORK ON THE E4B NATIONAL EMERGENCY COMMAND POST AIRCRAFT IN A NEWS STATEMENT SCIENTIFICATLANTA SAID ITS ELECTRONIC SYSTEMS DIVISION WILL PROVIDE ITS MODEL 2095 MICROWAVE MEASUREMENT SYSTEM A RADOME TEST POSITIONER AND ITS MODEL 3842A AUTOTRACK CONTROLLER WHICH WILL BE USED IN A SCIENTIFICATLANTA COMPACT TEST RANGE INSTALLED AT BOEING'S KENT WASH FACILITY SCIENTIFICATLANTA SAID THE EQUIPMENT WILL TEST THE TRIBAND RADOMES USED WITH MILSTAR SATELLITE COMMUNICATIONS EQUIPMENT CARRIED ABOARD THE MODIFIED 747 AIRCRAFT TO SUPPORT ITS COMMAND AND CONTROL MISSION MILSTAR PROVIDES A JAMRESISTANT SATELLITE COMMUNICATIONS CAPABILITY FOR THE MILITARY'S STRATEGIC AND TACTICAL FORCES THE COMPANY SAID 9402280020 940228 FORM + FUNCTION BY JOHN PIERSON HERE'S A BASKETBALL WITH AN IDENTITY CRISIS LAST MAY 18 THIS COLUMN TOLD HOW JOHN HYNES A BOSTON BOND TRADER HAD REARRANGED THE SEAMS ON A BASKETBALL TO MAKE IT EASIER TO GRIP NOW HERE COMES MARVIN PALMQUIST WITH A BASKETBALL THAT LOOKS LIKE A GIANT GOLFBALL WHITE AND DIMPLED FINGERTIPS FIT NICELY INTO THE DIMPLES FOR SOLID GRIPPING SAYS MR PALMQUIST AN ENTREPRENEUR AND OWNER OF LLOYD'S CORP ROCKFORD ILL HE ALSO SAYS HIS BALL MARRIES TWO CRAZES GOLF AND BASKETBALL AND IS MORE INTERESTING AND AESTHETIC THAN A STANDARD BALL HE DOESN'T EXPECT HIS BASKETBALL TO TAKE OVER THE PROFESSIONAL CIRCUIT BUT HE SEES A LARGE POTENTIAL MARKET FOR BACKYARD DRIVEWAY PLAY MR PALMQUIST MAY BE TOO MODEST JAMES MCLAUGHLIN ATHLETIC DIRECTOR AT WOODSTOCK UNION HIGH SCHOOL WOODSTOCK VT CALLED THE NEW BALL A GOOD TEACHING BALL FOR YOUNGER KIDS EASIER TO CONTROL WITH SMALLER HANDS MR MCLAUGHLIN WAS ABLE TO PALM THE PALMQUIST BALL A FEAT HE SAYS HE CAN'T PERFORM WITH A STANDARD BASKETBALL JULIE ADAMS A WOODSTOCK FRESHMAN SAID SIMPLY IT'S EASIER TO GRAB THERE ALREADY IS A WHITE PALMQUIST SOCCER BALL WITH DIMPLES AMONG THE PENTAGONS THE INVENTOR SAYS HIS NEXT PROJECT IS A DIMPLED FOOTBALL PUMPS AND AEROSOLS THE WAR BETWEEN THE AEROSOLS AND THE PUMPS GOES ON IN AN ITEM ON JAN 12 1993 ABOUT KINDS OF HAND AND FINGER PUMPS THIS COLUMN SAID AEROSOLS USE SMOGGY HYDROCARBONS TO PROPEL PRODUCT PUMPS USE MUSCLE POWER AND PURE AIR THE AEROSOL INDUSTRY CAME DOWN WITH ALL FOUR FEET ON THAT TIMOTHY STONICH EXECUTIVE VICE PRESIDENT OF US CAN SAID THE WALL STREET JOURNAL HAD SUCCUMBED TO AEROSOL BASHING J RICHARD FRAUENHEIM PRESIDENT OF DIVERSIFIED CPC INTERNATIONAL A MAKER OF AEROSOL PROPELLANTS SAID THAT MOST OF THE WORLD'S SMOGCAUSING GASSES ARE NATURALLY PRODUCED BY FLOWERS TREES COWS BELCHING ETC HARRY MCCAIN PRESIDENT OF THE NATIONAL AEROSOL ASSOCIATION A TRADE GROUP SAID THAT WHILE PUMPS DON'T USE CHEMICAL PROPELLANTS THEY MUST USE CHEMICAL SOLVENTS USUALLY ALCOHOL TO BREAK UP CONTENTS INTO A FINE SPRAY AND HASTEN DRYING ALCOHOL IS MORE SMOGFORMING THAN THE HYDROCARBON PROPELLANTS THAT POWER AEROSOLS SAID MR MCCAIN THE PUMP INDUSTRY COUNTERS FORCEFULLY WHILE ACKNOWLEDGING THAT PUMPS REQUIRE SOLVENTS TO DISPENSE SOME PRODUCTS BRENDAN SWAN PRESIDENT OF AIRSPRAY INTERNATIONAL POMPANO BEACH FLA SAYS THAT ON AVERAGE PRODUCTS CONTAINED IN ITS PUMPS HAVE 40 TO 50 FEWER SMOGCAUSING CHEMICALS THAN AEROSOLS ROLF SVENSSON PRESIDENT OF LD SYSTEMS CHARLOTTE NC ANOTHER PUMP MAKER SAYS RELATIVELY FEW OF THE PRODUCTS HIS EUROSPRAYS DISPENSE REQUIRE SOLVENTS EUROSPRAY IS SELLING WELL IN EUROPE WHERE ENVIRONMENTAL RULES ARE STRICTER HE ADDS BUT SALES ARE SLUGGISH IN THE US WHERE COMPANIES WHOSE PRODUCTS ARE DISPENSED BY AEROSOLS ARE RELUCTANT TO SWITCH WHILE CLEANAIR RULES ARE IN FLUX UGLINESS RAMPANT OUR LAST MARCH 22 COLUMN TORE INTO DARTMOUTH COLLEGE IN HANOVER NH FOR PERMITTING A WHEELCHAIR RAMP TO SPOIL THE FACE OF ONE OF ITS LOVELY OLD BUILDINGS FORM+FUNCTION MAY HAVE BEEN UNFAIR TO SINGLE OUT DARTMOUTH RAMPS SCAR THE FACADES OF MANY PUBLIC STRUCTURES ESPECIALLY IN NORTHERN STATES WHERE STEPS WERE BUILT TO REACH A FRONT DOOR THAT WAS RAISED UP ABOVE THE SNOW ARCHITECTS HAVE SENT PICTURES OF ATTRACTIVE RAMPS THEY HAVE DESIGNED IT'S EASIER TO BUILD GOODLOOKING WHEELCHAIR ACCESS INTO A NEW BUILDING ARCHITECT PETER BOHLIN BROUGHT THE RAMP INSIDE THE WINCHESTERTHURSTON SCHOOL IN PENNSYLVANIA WHERE IT DOES DOUBLE DUTY WITH THE SCHOOL'S SLOPING CORRIDOR HENRY COBB IS DESIGNING BOSTON'S NEW FEDERAL COURTHOUSE WITHOUT THE TRADITIONAL COURTHOUSE STEPS HE'S FOUND OTHER WAYS TO DIGNIFY THE BUILDING INCLUDING A HUGE ARCH OVER THE ENTRANCE THE REAL CHALLENGE COMES IN RETROFITTING A BUILDING FOR HANDICAP ACCESS MR COBB CALLS MOST ATTEMPTS A TRAGEDY FOR ARCHITECTURE AND NOWIN FOR WHEELCHAIR USERS WHO USUALLY HAVE TO NEGOTIATE A RAMP WITH TOO MANY TWISTS AND TURNS DAVID SMOTRICH GETS AN A' FOR EFFORT IN THE RELATIVELY UNOBTRUSIVE RAMP HE DESIGNED FOR COLUMBIA UNIVERSITY'S HARTLEY HALL IN NEW YORK AMONG THE MOST RESOURCEFUL RETROFITTERS ARE ARCHITECTS DAVIS BRODY WHO SLIPPED A RAMP INTO THE LOBBY OF NEW YORK'S NEW MIDTOWN COMMUNITY COURT WITH THE ADVANTAGE OF SPACE TO WORK WITH DAVIS BRODY ALSO INSTALLED TWO HALFCIRCULAR WHEELCHAIR RAMPS ON EITHER SIDE OF THE ENTRANCE TO THE OLD BIRDHOUSE AT THE BRONX ZOO THE RAMPS ARE SYMMETRICAL AND CLASSICAL 9402280019 940228 TECHNOLOGY & HEALTH FDA CITES EVIDENCE OF CIGARETTE MAKERS KEEPING NICOTINE AT ADDICTIVE LEVELS BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION SAID THERE IS GROWING EVIDENCE THAT TOBACCO COMPANIES DELIBERATELY MAINTAIN THE LEVEL OF NICOTINE IN CIGARETTES AT ADDICTIVE LEVELS THE FDA'S STATEMENT MARKED THE FEDERAL GOVERNMENT'S LATEST ATTACK ON THE TOBACCO INDUSTRY THE FDA'S FINDING IF CONFIRMED COULD PROVIDE A LEGAL BASIS FOR FDA REGULATION OF CIGARETTES AS A DRUG ACCORDING TO FDA COMMISSIONER DAVID KESSLER BUT ACKNOWLEDGING THAT SUCH REGULATORY ACTION COULD HAVE DRAMATIC EFFECTS ON SOCIETY DR KESSLER SUGGESTED THAT THE AGENCY WOULDN'T ACT WITHOUT A DIRECTIVE FROM CONGRESS THERE HAVE BEEN VARIOUS PROPOSALS FOR ALMOST 20 YEARS THAT THE FDA REGULATE CIGARETTES AND IT ISN'T CONSIDERED LIKELY THAT CONGRESS WILL ACT NOW NONETHELESS SEVERAL GOVERNMENT ACTIONS DURING THE PAST 14 MONTHS HAVE MADE BUSINESS INCREASINGLY DIFFICULT FOR THE TOBACCO INDUSTRY IN THE US THE CLINTON ADMINISTRATION IS THE FIRST TO HAVE BEEN WILLING TO ACKNOWLEDGE THE EXTENT OF THE PUBLIC HEALTH HARM CAUSED BY TOBACCO SAYS MATTHEW MYERS AN ATTORNEY THAT REPRESENTS MAJOR HEALTH GROUPS ON SMOKING ISSUES THE CLINTON ADMINISTRATION HAS PROPOSED SHARPLY RAISING THE EXCISE TAX ON CIGARETTES TO HELP PAY FOR HEALTHCARE REFORM AND SEVERAL TOBACCO EXPERTS SAID THAT THE REPORT THAT THE FDA IS CONSIDERING REGULATING CIGARETTES AS A DRUG SHOULD STRENGTHEN THE GOVERNMENT'S HAND THIS IS GOING TO SUPPORT THE GOVERNMENT'S CASE FOR A TAX AND IT'S GOING TO MAKE IT HARDER FOR THE INDUSTRY TO FIGHT AGAINST IT SAYS S LEIGH FERST A TOBACCO ANALYST AT PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA ALREADY CAUSING MAJOR PROBLEMS FOR THE INDUSTRY IS THE ENVIRONMENTAL PROTECTION AGENCY REPORT ISSUED LAST YEAR THAT SAID THAT SECONDHAND CIGARETTE SMOKE CAUSES LUNG CANCER A FINDING THAT SERVED AS A POWERFUL TOOL IN PRODDING BUSINESSES RESTAURANTS LOCAL GOVERNMENTS AND EVEN SPORTS STADIUMS ACROSS THE COUNTRY TO BAN OR SEVERELY RESTRICT SMOKING TO AVOID LIABILITY FOR SUBJECTING PEOPLE TO SUCH SMOKE LAST WEEK SURGEON GENERAL DR JOYCELYN ELDERS URGED A BAN ON CIGARETTE ADVERTISING DIRECTED AT TEENAGERS THE FDA'S COMMENT WHICH MANY VIEW AS A CHANGE IN POSITION CAME IN RESPONSE TO PETITIONS FROM THE COALITION ON SMOKING OR HEALTH WHICH COMPRISES THE AMERICAN HEART ASSOCIATION THE AMERICAN LUNG ASSOCIATION AND THE AMERICAN CANCER SOCIETY THEY ARE URGING THE FDA TO REGULATE CIGARETTES AS DRUGS DRUGS ARE REGULATED UNDER THE FOOD DRUG AND COSMETIC ACT A PRODUCT CAN BE CATEGORIZED AS A DRUG IF IT IS DEEMED TO BE FOR THERAPEUTIC OR DIAGNOSTIC USE OR TO AFFECT THE STRUCTURE OR FUNCTION OF THE BODY DR KESSLER SAID THAT THE FDA TRADITIONALLY HASN'T ASSERTED JURISDICTION OVER MOST CIGARETTE PRODUCTS ALTHOUGH THERE ISN'T ANY EXEMPTION FOR THEM UNDER THE ACT'S DEFINITION OF DRUGS EVIDENCE IS ACCUMULATING THAT SUGGESTS THAT CIGARETTE MANUFACTURERS MAY INTEND THAT THEIR PRODUCTS CONTAIN NICOTINE TO SATISFY AN ADDICTION DR KESSLER WROTE IN HIS LETTER TOBACCO INSTITUTE DISAGREES THOMAS LAURIA SPOKESMAN FOR THE TOBACCO INSTITUTE ASSAILED THE FDA COMMISSIONER'S STATEMENTS AND SAID THE AGENCY'S EVIDENCE ISN'T SIGNIFICANT THEY HAVE BEEN RAISING THIS ISSUE SINCE THE '60S MR LAURIA SAID THE FACT IS TOBACCO ISN'T A DRUG AND IS ALREADY BEING SUFFICIENTLY REGULATED IN EVERY ASPECT BUT SCOTT BALLIN VICE PRESIDENT PUBLIC AFFAIRS AT THE HEART ASSOCIATION SAID THAT EVIDENCE GATHERED BY THAT ORGANIZATION AND THE FDA SHOWS A VERY CALCULATED AND INTENDED EFFORT BY THE TOBACCO INDUSTRY TO CONTROL THE AMOUNT OF NICOTINE IN CIGARETTES HE SAID COMPANIES ARE ACTIVELY STUDYING WAYS TO EXTRACT NICOTINE FROM TOBACCO AND PACK IT INTO CIGARETTES THE TOBACCO INDUSTRY IS IN THE DRUG BUSINESS WE KNOW IT PEOPLE WHO ARE DESPERATELY FIGHTING THEIR ADDICTION TO NICOTINE KNOW IT MR BALLIN SAID AND NOW THE FDA KNOWS IT THE FDA'S DR KESSLER SAID THAT WHILE TECHNOLOGY EXISTS TO REMOVE NICOTINE FROM CIGARETTES OR CONTROL ITS LEVEL IN THEM CIGARETTES ARE STILL MARKETED WITH SUFFICIENT NICOTINE TO PRODUCE AND SUSTAIN ADDICTION MR LAURIA AND CIGARETTECOMPANY OFFICIALS DENY THAT THERE IS ANY DELIBERATE MANIPULATION OF NICOTINE LEVELS IN CIGARETTES THE COMPANIES ARGUE THAT CIGARETTES THAT ARE EXTREMELY LOW IN NICOTINE HAVE FAILED TO CATCH ON WITH SMOKERS A FEW YEARS AGO PHILIP MORRIS COS DROPPED NEXT A CIGARETTE WITH ITS LOWEST NICOTINE LEVEL TO DATE AFTER IT WAS REJECTED BY CONSUMERS A COMPANY SPOKESWOMAN SAID REPS MIKE SYNAR D OKLA AND RICHARD DURBIN DILL HAVE SPONSORED LEGISLATION THAT WOULD GIVE THE FDA STRONGER AND BROADER AUTHORITY TO REGULATE THE MANUFACTURE SALE AND PROMOTION OF TOBACCO PRODUCTS THAT PIECE OF LEGISLATION HAS NEVER MADE IT OUT OF COMMITTEE AND I DON'T EXPECT IT TO THIS TIME EITHER MR LAURIA SAID THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID ABOUT 400000 AMERICANS DIE FROM SMOKING EVERY YEAR ABOUT 45 MILLION AMERICANS SMOKE AND A RECENT STUDY RELEASED BY DR ELDERS SAID AT LEAST 31 MILLION TEENAGERS SMOKE AN INCREASE FROM LAST YEAR EBEN SHAPIRO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9402280018 940228 FED OFFICIALS DIFFER IN STANCE ON DERIVATIVES GOVERNOR SPEAKS IN FAVOR RESERVE BANK PRESIDENT WARNS OF SYSTEMIC RISK BY ALBERT R KARR AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL TWO FEDERAL RESERVE SYSTEM OFFICIALS GAVE CONFLICTING SIGNALS ABOUT THE BURGEONING AND CONTROVERSIAL MARKET FOR DERIVATIVE INSTRUMENTS SOLD BY BANKS IN A CONFERENCE IN MIAMI SPONSORED BY THE FEDERAL RESERVE BANK OF ATLANTA SUSAN PHILLIPS A FEDERAL RESERVE BOARD GOVERNOR SPOKE OUT VIGOROUSLY IN FAVOR OF DERIVATIVES MS PHILLIPS WHO CHAIRS THE FED'S DERIVATIVES COMMITTEE AND IS ITS LEADING EXPERT ON THE SUBJECT PRAISED THE SCRUTINY BEING GIVEN DERIVATIVES AS FORCING A REVOLUTION IN RISKMANAGEMENT PRACTICES THAT CAN SIGNIFICANTLY IMPROVE THE SOUNDNESS AND EFFICIENCY OF MORE TRADITIONAL TRADING AND LENDING ACTIVITIES SHE TOOK WHAT AN OFFICIAL OF A LARGE NEW YORKBASED BANK CALLED A MORE PRODERIVATIVES STANCE THAN EITHER THE FED OR ANY OTHER NATION'S CENTRAL BANK HAS TAKEN IN THE PAST HE CALLED THE SPEECH A STRAW IN THE WIND AND ONE THAT HE WELCOMED BUT IN THE SAME FORUM WILLIAM MCDONOUGH PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK SAID BANKS WILL FACE MORE INTENSE GOVERNMENT SCRUTINY IF THEY DON'T TAKE SERIOUSLY THE SYSTEMIC RISKS THAT COME WITH THE FASTGROWING DERIVATIVES MARKET DERIVATIVES ARE COMPLEX FINANCIAL INSTRUMENTS WHOSE VALUES ARE TIED TO STOCK PRICES INTEREST RATES CURRENCY RATES OR FINANCIAL ASSETS THE OFFICIALS' DIVERGENT TONES REFLECT THE DILEMMA FACING FINANCIAL REGULATORS WHO GENERALLY RECOGNIZE THE VALUE OF DERIVATIVES AS OFFERING A NEW RISKMANAGEMENT TOOL FOR BANKERS BUT THERE ARE ALSO CONCERNS THAT THE INSTRUMENTS COULD POSE DANGERS THAT LEAD TO CRISES SUCH AS THE JUNKBOND AND THRIFT DEBACLES THE FED BOARD COULD WELL TAKE A MORE FAVORABLE VIEW TOWARD DERIVATIVES THAN THE NEW YORK FED WHICH HAS CONSISTENTLY SHOWN ALARM MR MCDONOUGH SAID HE BELIEVES THERE IS A LOW PROBABILITY OF A SYSTEMIC PROBLEM IN THE FINANCIAL SYSTEM BUT THAT THE LOW PROBABILITY CARRIES WITH IT A HIGH DEGREE OF DANGER HE SAID IT WAS ACTUALLY MORE LIKELY THAT A USER RATHER THAN A DEALER COULD FACE A BOMB GOING OFF BECAUSE OF DERIVATIVES EXPOSURES BUT BANKS MUST TAKE SERIOUSLY THE SYSTEMIC RISKS OR REGULATORS WILL TAKE ACTIONS THAT BANKS PROBABLY WON'T LIKE MR MCDONOUGH SAID THE NEW YORK FED OFFICIAL WAS RESPONDING TO A COMMENT PLAYING DOWN THE RISKS OF A SYSTEMIC PROBLEM IF THAT ATTITUDE PREVAILS IT WILL BRING REGULATORS RIGHT DOWN ON BANKS AND STIFLE THE MARKETPLACE HE WARNED BUT EVEN MR MCDONOUGH HAS SEEN BENEFITS IN DERIVATIVES AT A FED SEMINAR LAST SEPTEMBER HE SAID I HAVE LONG BEEN CONVINCED THAT THE EXTRAORDINARY GROWTH OF DERIVATIVES ACTIVITY OVER THE PAST DECADE HAS PROVIDED REAL BENEFITS IN THE FORM OF MOREEFFICIENT ALLOCATION AND MANAGEMENT OF RISK FOR HER PART MS PHILLIPS HAS LONG BEEN FAMILIAR WITH FARM AND FINANCIAL FUTURES AND OPTIONS ANOTHER FORM OF DERIVATIVES AS A FORMER COMMODITY FUTURES TRADING COMMISSION CHAIRMAN SHE SAID SHE REGARDS WIDE SKEPTICISM CONCERNING BANKS' USE OF DERIVATIVES AS SYMPTOMS OF BROADER ANXIETIES ABOUT CHANGES IN FINANCIAL MARKETS AND BANKS' ROLES IN THOSE MARKETS IOWA REP JAMES LEACH THE RANKING REPUBLICAN ON THE HOUSE BANKING COMMITTEE IS SPONSORING LEGISLATION TO TIGHTEN DERIVATIVES REGULATION AND OTHER BILLS MAY EMERGE MS PHILLIPS NOTED BUT SHE SAID THAT AS BANKING REGULATORS DECIDE HOW TO TREAT DERIVATIVES IN CAPITAL AND FINANCIAL REPORTING IN COMING MONTHS SEIZING THESE OPPORTUNITIES WILL NOT REQUIRE ANY NEW LEGISLATION THEY WILL HOWEVER REQUIRE REGULATORS TO ADOPT NEW APPROACHES TO KEY REGULATORY ISSUES SHE ALSO SAID SHE IS SYMPATHETIC TO THE PLEAS BY MANY BANKS THAT THEY BE ALLOWED TO USE THEIR OWN INTERNAL MODELS TO COMPUTE CAPITAL REQUIREMENTS IN ASSESSING DERIVATIVES' MARKET RISKS BUT SHE SAID SHE EXPECTS REGULATORS TO BE RELUCTANT TO FOLLOW THAT APPROACH UNLESS GOOD METHODS ARE DEVELOPED TO VALIDATE SUCH MODELS 9402280017 940228 FINANCING BUSINESS COCACOLA BEVERAGES LTD COCACOLA BEVERAGES LTD TORONTO SAID IT COMPLETED AN ISSUE OF 50 MILLION CANADIAN DOLLARS US371 MILLION OF SUBORDINATED DEBT MATURING IN MARCH 2000 WITH COCACOLA FINANCIAL CORP A UNIT OF COCACOLA CO ATLANTA THE DEBT CARRIES A WEIGHTED AVERAGE INTEREST RATE OF 1014 COCACOLA BEVERAGES 49 OWNED BY COCACOLA CO SAID IN NOVEMBER IT WOULD SEEK THE FINANCING AS PART OF A CORPORATE RESTRUCTURING 9402280016 940228 REVIEW & OUTLOOK EDITORIAL HONG KONG'S RIGHTS HONG KONG'S LEGISLATIVE COUNCIL DESERVES PRAISE FROM THE COLONY'S PEOPLE FOR MAKING ITS FIRST SERIOUS ATTEMPT TO PRESERVE THEIR RIGHTS AFTER 1997 ON THURSDAY LEGCO MEMBERS STOOD UP TO BEIJING'S THREATS AND APPROVED THE FIRST STAGE OF GOV CHRIS PATTEN'S ELECTORAL REFORM ONLY HOURS AFTER THE VOTE BEIJING PREDICTABLY VOWED TO WIPE OUT LEGCO AND ALL OTHER VESTIGES OF DEMOCRACY AFTER IT TAKES OVER THAT'S ALL THE MORE REASON FOR LEGCO MEMBERS TO RAISE THE ANTE BY APPROVING THE SECOND STAGE OF MR PATTEN'S REFORMS AS WELL ASSUMING BRITAIN AND CHINA DON'T CUT A DEAL OVER THEIR HEADS IN THE MEANTIME THEY WILL GET THAT CHANCE MARCH 9 THURSDAY'S VOTE LOWERS THE VOTING AGE TO 18 FROM 21 LETS VOTERS SELECT LOCAL COUNCILS AND ADOPTS THE FIRSTPASTTHEPOST SYSTEM FOR CHOOSING LEGCO MEMBERS WHO ARE ELECTED DIRECTLY BUT IT IS THE SECOND STAGE THAT REALLY COUNTS IF IT PASSES IT WOULD CONVERT LEGCO INTO A GENUINELY REPRESENTATIVE LEGISLATIVE BODY CHINA WOULD HAVE TO OVERRIDE A REAL PARLIAMENT IF IT CHOOSES TO ABUSE HONG KONG'S RIGHTS AFTER IT TAKES JURISDICTION IN MID1997 THAT'S THE GOOD NEWS THERE'S ALSO DISQUIETING NEWS FROM HONG KONG AS WELL LAST MONTH THE US STATE DEPARTMENT IN ITS ANNUAL REPORT ON HUMAN RIGHTS WORLDWIDE WARNED ABOUT THE DECLINE IN THE FREEDOM OF SPEECH IN THE COLONY ACCORDING TO THE REPORT SELFCENSORSHIP IS ON THE RISE LOCAL JOURNALISTS APPARENTLY FEAR OFFENDING CHINA THE REPORT CITES TWO REASONS BOTH OF WHICH SAY A LOT ABOUT THE DANGERS TO HONG KONG AFTER 1997 ONE IS THE ADMISSION BY CHINA'S MINISTRY OF PUBLIC SECURITY THAT IT HAS BEEN GATHERING INFORMATION ON HONG KONG RESIDENTS WHO ARE AGAINST THE CHINESE GOVERNMENT' IT IS TAKEN FOR GRANTED IN HONG KONG THAT CHINA IS COMPILING DETAILED DOSSIERS ON SOCALLED ENEMIES NEEDLESS TO SAY IF A JOURNALIST OR A SOURCE HAS TO WORRY ABOUT GETTING A BLACK MARK ENTERED ON HIS SECRET FILE IT HAS A CHILLING EFFECT ON FREE SPEECH THIS IS ALL THE MORE TRUE SINCE THERE IS NO CONCEPT OF LOYAL OPPOSITION IN CHINA WHERE CRITICISM IS INTERPRETED AS SUBVERSION THE SECOND REASON IS THE GROWING INTEREST AMONG HONG KONG'S MEDIA COMPANIES IN THE CHINA MARKET A MEDIA ORGANIZATION THAT WANTS TO EXPAND COMMERCIAL TIES WITH CHINA MAY WELL BE RELUCTANT TO RISK POTENTIAL BUSINESS INTERESTS BY REPORTING ANYTHING THAT MIGHT GIVE OFFENSE THIS MAY EXPLAIN FOR EXAMPLE TVB'S APPARENT REFUSAL TO AIR A CONTROVERSIAL BBC DOCUMENTARY ON MAO TVB A LOCAL TELEVISION STATION HAS HOPES OF EXPANDING INTO ADJACENT GUANGDONG PROVINCE PRESS FREEDOM IS BY NO MEANS DEAD IN HONG KONG OF COURSE THERE ARE AT LEAST FIVE TV CHANNELS AND MORE AVAILABLE VIA SATELLITE DOZENS OF MAGAZINES EXIST AND 20 NEWSPAPERS ARE PUBLISHED EVERY DAY THE DEBATE ON MOST ISSUES IS VIGOROUS THERE IS MUCH THE HONG KONG BRITISH GOVERNMENT COULD DO TO HELP ENSURE THAT IT REMAINS SO SUNSHINE LAWS WOULD HELP AS WOULD A FREEDOM OF INFORMATION ACT MOST CRUCIAL OF ALL HONG KONG NEEDS TO REPEAL A DOZEN OR MORE ORDINANCES RARELY ENFORCED BY THE BRITISH THAT COULD BE USED TO SQUELCH A FREE PRESS UNDER A LESS TOLERANT TRADITION SUCH LAWS ARE RIPE FOR ABUSE BY CHINA COME 1997 HONG KONG JOURNALISTS ALSO BEAR SOME RESPONSIBILITY FOR ENSURING PRESS FREEDOM SELFCENSORSHIP STARTS WITH THE INDIVIDUAL AND NEWS ORGANIZATIONS NEED TO FOSTER A CLIMATE THAT ENCOURAGES FULL REPORTING SAD TO SAY THEY ARE NOT ALWAYS WILLING TO DO SO THE LOCAL MING PAO NEWSPAPER FOR EXAMPLE SEEMS TO HAVE FORGOTTEN ABOUT ITS REPORTER XI YANG A MAINLAND CITIZEN WHO WAS ARRESTED IN CHINA IN SEPTEMBER FOR ALLEGEDLY RELEASING STATE SECRETS ON BANKING MR XI HAS NOT BEEN HEARD FROM SINCE HONG KONG'S PEOPLE ALSO BEAR RESPONSIBILITY FOR HELPING TO PRESERVE THEIR OTHER RIGHTS AFTER 1997 TOWARD THIS END MR PATTEN HAS DONE HONG KONG GREAT SERVICE BY GIVING LEGCO AN OPPORTUNITY TO TURN ITSELF INTO A SELFASSERTIVE PARLIAMENT WE HOPE FERVENTLY THAT LEGCO WILL BE ALLOWED TO VOTE ON THE SECOND STAGE AND THAT IT WILL PASS IT EMPHATICALLY IF HONG KONG'S FUTURE IS TO BE PROTECTED IT WILL HAVE TO BE DEFENDED BY HONG KONG'S PEOPLE THEMSELVES 9402280015 940228 INTERNATIONAL ISRAEL TAKES STEPS TO END VIOLENCE AFTER MASSACRE LEADERS OF KAHANE GROUP ARE ORDERED ARRESTED RADICALS TO BE DISARMED BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM IN AN EFFORT TO QUELL ESCALATING VIOLENCE IN ISRAEL AND THE OCCUPIED TERRITORIES FOLLOWING FRIDAY'S MASSACRE IN A HEBRON MOSQUE THE ISRAELI CABINET ORDERED THE ARREST OF FIVE LEADERS OF A JEWISH EXTREMIST GROUP AND SAID IT WOULD BEGIN DISARMING RADICAL SETTLERS FOLLOWING A STORMY FIVEHOUR DISCUSSION YESTERDAY THE CABINET DECIDED TO SET UP A GOVERNMENT COMMISSION TO INVESTIGATE THE CIRCUMSTANCES SURROUNDING THE KILLING EARLY FRIDAY MORNING BY A JEWISH GUNMAN OF AT LEAST 39 PALESTINIANS PRAYING IN THE CAVE OF THE PATRIARCHS IN HEBRON WHICH THE BIBLE SAYS IS THE BURIAL PLACE OF ABRAHAM ISAAC JACOB AND THEIR WIVES THE COMMISSION WILL LOOK INTO THE CONDUCT OF THE ISRAELI ARMY DURING THE MASSACRE FOCUSING IN PARTICULAR ON HOW THE GUNMAN WAS ABLE TO ENTER THE COMPOUND UNDETECTED BY SOLDIERS WHO USUALLY GUARD THE SITE AND WHY HE WAS ABLE TO FIRE SO MANY BULLETS WITHOUT BEING STOPPED ISRAELI ARMY OFFICIALS SAID A PRELIMINARY INQUIRY FOUND THAT THE 111 BULLET CASINGS INSIDE THE CAVE ALL CAME FROM THE GALIL RIFLE OF DR BARUCH GOLDSTEIN A RESIDENT OF KIRYAT ARBA ADJACENT TO HEBRON WHO WAS SEIZED BY THE CROWD AND BEATEN TO DEATH AFTER HIS GUN JAMMED BUT PALESTINE LIBERATION ORGANIZATION LEADER YASSER ARAFAT ACCUSED ISRAELI SOLDIERS OF HELPING DR GOLDSTEIN AND SAID THAT EYEWITNESSES INSIDE THE SHRINE REPORTED THE KILLINGS WERE THE WORK OF AS MANY AS 12 MEN MR ARAFAT CONTENDS ISRAELI SOLDIERS OPENED FIRE ON PALESTINIANS TRYING TO EVACUATE THE WOUNDED TO HOSPITALS ARMY OFFICIALS SAY THE TWO SOLDIERS STANDING AT THE ENTRANCE TO THE CAVE FIRED SEVEN SHOTS IN THE AIR THE PLO LEADER STOPPED SHORT OF CALLING FOR AN END TO PEACE TALKS BUT HE SAID THEY CANNOT PROCEED WITHOUT PROTECTION FOR PALESTINIANS LIVING IN THE OCCUPIED TERRITORIES HE CALLED FOR AN INTERNATIONAL PEACEKEEPING FORCE TO BE DEPLOYED IN THE WEST BANK AND GAZA STRIP A DEMAND THAT ISRAEL EMPHATICALLY REJECTS MEANWHILE SYRIA JORDAN AND LEBANON CUT SHORT A ROUND OF PEACE TALKS WITH ISRAEL THAT WAS TO END ON WEDNESDAY A US OFFICIAL TOLD REUTERS THE EXECUTIVE COUNCIL OF THE PLO WAS SCHEDULED TO MEET IN TUNIS LATE LAST NIGHT IN ORDER TO DISCUSS PRESIDENT CLINTON'S INVITATION TO ISRAELI AND PALESTINIAN NEGOTIATORS TO MOVE THE PEACE TALKS TO WASHINGTON ISRAELI PRIME MINISTER YITZHAK RABIN HAS SAID THAT ISRAEL WILL ATTEND IF THE PALESTINIANS ALSO AGREE TO GO ISRAELI MINISTER OF THE ENVIRONMENT YOSSI SARID CALLED THE DECISIONS BY THE 14MEMBER CABINET UNPRECEDENTED BUT PALESTINIAN LEADERS SAID THE GOVERNMENT DID NOT GO FAR ENOUGH AND THAT ALL JEWISH SETTLERS LIVING IN THE WEST BANK AND THE GAZA STRIP MUST BE DISARMED IN A MEETING YESTERDAY IN HEBRON LEADERS OF THE LOCAL PALESTINIAN COMMUNITY TOLD ISRAELI PRESIDENT EZER WEIZMAN THAT THE KIRYAT ARBA SETTLEMENT MUST BE REMOVED AND THAT FRIDAY'S MASSACRE PROVED THAT COEXISTENCE BETWEEN PALESTINIANS AND JEWISH SETTLERS IN HEBRON IS IMPOSSIBLE WHILE THE CABINET DECISION EMPOWERS THE ARMY TO RESTRICT EXTREMIST SETTLERS FROM ENTERING THE OCCUPIED TERRITORIES INCLUDING THE HEBRON AREA IT STOPPED SHORT OF BANISHING THEM OUTRIGHT BECAUSE OF LEGAL COMPLICATIONS MR SARID SAID THE CABINET DECISION CAME AS VIOLENCE IN ISRAEL AND THE OCCUPIED TERRITORIES CONTINUED FOLLOWING THE MASSACRE THE ARMY HAS SEALED OFF THE WEST BANK AND GAZA STRIP FOR AN INDEFINITE PERIOD BARRING PALESTINIANS FROM ENTERING ISRAEL TO GO TO WORK RESIDENTS OF KIRYAT ARBA HAVE BEEN PREVENTED FROM ENTERING OR LEAVING THE SETTLEMENT WITHOUT THE ARMY'S PERMISSION AND MUST TRAVEL WITH AN ARMY ESCORT VIOLENT CONFRONTATIONS BROKE OUT IN JAFFA NEAR TEL AVIV AND IN MANY ISRAELI ARAB TOWNS IN SCENES RECALLING THE WORST DAYS OF THE PALESTINIAN UPRISING IN THE OCCUPIED TERRITORIES ISRAELI ARABS WERE SHOWN ON ISRAELI TELEVISION BURNING TIRES IN THE MIDDLE OF ROADS AND THROWING ROCKS AT POLICE IN RIOTING IN AN ISRAELI ARAB TOWN NEAR BEERSHEBA ONE MAN WAS KILLED AND THREE OTHERS INJURED AS POLICE TRIED TO BREAK UP DEMONSTRATIONS TWENTYFOUR ARABS HAVE BEEN KILLED IN RIOTING IN THE OCCUPIED TERRITORIES AND IN ISRAEL SINCE FRIDAY OTHER STEPS TAKEN BY THE ISRAELI CABINET YESTERDAY INCLUDE RELEASING 1000 PALESTINIANS FROM ISRAELI PRISONS THE CABINET HAS ALSO ORDERED THE JUSTICE MINISTRY TO EXAMINE THE POSSIBILITY OF OUTLAWING EXTREMIST JEWISH GROUPS WHILE THE EXACT NUMBER OF SUCH EXTREMISTS IS NOT KNOWN ISRAELI EXPERTS ESTIMATE THEY PROBABLY NUMBER NO MORE THAN 100 THE MAIN FOCUS OF YESTERDAY'S CRACKDOWN IS KACH A MILITANT ANTIARAB GROUP FOUNDED BY RABBI MEIR KAHANE WHO WAS ASSASSINATED IN NEW YORK IN 1990 BUT EVEN AS THE GOVERNMENT MOVED AGAINST RADICAL SETTLERS ITS ACTIONS WERE CRITICIZED BY SOME ISRAELIS AS COMING TOO LATE AND NOT GOING FAR ENOUGH FOCUS ON SETTLERS EHUD SPRINZAK A HEBREW UNIVERSITY PROFESSOR WHO IS AN EXPERT ON ISRAELI RADICAL RIGHTWING GROUPS WARNED THE GOVERNMENT MONTHS AGO THAT ACTION MUST BE TAKEN AGAINST EXTREMIST SETTLERS THE GOVERNMENT HAS BEEN SOFT ON THE SETTLERS MR SPRINZAK SAID IT NEVER GAVE THE EXTREMISTS THE SENSE THAT THE GOVERNMENT IS THE ONE RUNNING THE SHOW MR SPRINZAK SAID THAT RADICAL SETTLERS HAVE STOCKPILED ARMS AND POSSESS SOPHISTICATED EQUIPMENT THAT ALLOWS THEM TO TRACK THE ARMY'S MOVEMENTS AND THEREFORE AVOID DETECTION WHEN CONDUCTING ACTIONS AGAINST PALESTINIANS FOUR OF THE KACH LEADERS WANTED FOR ARREST HAVE GONE INTO HIDING ONE HAS BEEN BROUGHT INTO CUSTODY WHILE EARLY NEWS REPORTS INDICATED THAT SOME MEMBERS OF KIRYAT ARBA KNEW IN ADVANCE THAT DR GOLDSTEIN INTENDED TO COMMIT THE MASSACRE IT IS STILL UNCLEAR WHETHER THE KACH LEADERS ARE BELIEVED TO BE CONNECTED IN ANY WAY TO THE KILLINGS FRIDAY'S MASSACRE RAISED AGAIN THE QUESTION OF WHETHER IT WILL BE POSSIBLE TO SUCCESSFULLY IMPLEMENT PALESTINIAN SELFRULE IN THE WEST BANK AND GAZA STRIP WITHOUT DISCUSSING THE FUTURE OF JEWISH SETTLEMENTS THERE UNDER THE AGREEMENT REACHED BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IN SEPTEMBER THE SETTLEMENTS ARE TO REMAIN IN PLACE DURING A FIVEYEAR INTERIM PERIOD DESPITE CALLS BY SEVERAL LEFTWING CABINET MINISTERS TO REMOVE JEWISH SETTLERS FROM HEBRON THE GOVERNMENT DECIDED AGAINST SUCH A STEP AFTER FRIDAY IT'S HARD TO BELIEVE HOW THE SETTLERS AND THE PALESTINIANS WILL SURVIVE TOGETHER FOR FIVE YEARS SAYS YOEL MARCUS A COMMENTATOR FOR THE HA'ARETZ NEWSPAPER BUT THE GOVERNMENT IS BASICALLY WEAK IT HAS ONLY A 57MEMBER BASE PARLIAMENT HAS 120 MEMBERS AND IT IS NOT IN A POSITION TO DO ANYTHING DARING 9402280014 940228 WHO'S NEWS GRACO INC GRACO INC MINNEAPOLIS JOE R LEE 53YEAROLD VICE CHAIRMAN OF GENERAL MILLS INC WAS ELECTED A DIRECTOR OF THIS MAKER OF PUMPS AND SPRAYING EQUIPMENT FILLING A VACANCY ON THE BOARD THERE ARE NOW 10 BOARD MEMBERS JAMES A GRANER 49 FORMERLY TREASURER WAS NAMED A VICE PRESIDENT AND CONTROLLER OF THE COMPANY 9402280013 940228 OKLAHOMA GAS REFUND ORDERED OKLAHOMA CITY OKLAHOMA GAS & ELECTRIC CO SAID STATE REGULATORS DIRECTED IT TO REFUND 41 MILLION TO CUSTOMERS AND REDUCE RATES BY 17 MILLION A YEAR THE UTILITY SAID IT TOLD EMPLOYEES THAT AS A RESULT OF THE RULINGS IT WILL CONDUCT AN INTERNAL REVIEW THAT COULD LEAD TO SHRINKING THE UTILITY OR OTHER COSTCUTTING MEASURES THE COMPANY SAID IT HAS FROZEN SALARIES AND HIRING 9402280012 940228 PEPPERAND SALT AND FRINGES HOLDING SWAY WHICH ARE NOW MOSTLY GREY AND THINNING 9402280011 940228 BUSINESS BRIEF PHILLIPS PETROLEUM CO UNIT SELLS SOME ASSETS TO UNIT OF BURNS PHILP PHILLIPS PETROLEUM CO UNIT PROVESTA CORP SOLD ASSETS OF ITS FLAVOR INGREDIENTS AQUACULTURE AND ANIMALFEED OPERATIONS TO BURNS PHILP & CO'S INTEGRATED INGREDIENTS UNIT TERMS WEREN'T DISCLOSED THE COMPANY IN BARTLESVILLE OKLA SAID PROVESTA WILL CONTINUE TO OPERATE ITS FERMENTATION PLANT UNDER CONTRACT FROM INTEGRATED INGREDIENTS INTEGRATED INGREDIENTS WILL MERGE THE BUSINESSES WITH ITS OWN OPERATIONS PHILLIPS PETROLEUM SAID 9402280010 940228 ECONOMY G7 ATTRIBUTES RISING RATES TO RECOVERY LEADERS SAY RECENT TREND ISN'T TIED TO INFLATION GROWTH OUTLOOK IS GOOD BY KENNETH H BACON AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL FRANKFURT ECONOMIC LEADERS OF THE MAJOR INDUSTRIAL NATIONS ATTRIBUTED RECENT INCREASES IN LONGTERM INTEREST RATES TO SPREADING ECONOMIC RECOVERY RATHER THAN TO SIGNS OF INFLATIONARY PRESSURE FINANCE MINISTERS AND CENTRAL BANKERS FROM THE GROUP OF SEVEN NATIONS SPENT MOST OF THEIR DAYLONG MEETING IN GERMANY ON SATURDAY DISCUSSING THE RUSSIAN ECONOMY BUT IN THE TIME DEVOTED TO THEIR OWN ECONOMIES CONCERN OVER LONGTERM INTEREST RATES OVERSHADOWED EXCHANGE RATES DESPITE RECENT INTERESTRATE INCREASES HOWVER THE PROSPECT FOR SUSTAINED GROWTH AND LOW INFLATION IN THE G7 COUNTRIES IS RATHER GOOD BRITISH CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE SAID REGARDING THE JAPANESE CURRENCY'S STRENGTH AGAINST THE DOLLAR THERE WAS NO AGREEMENT TO DO ANYTHING ON THE YEN SAID BANK OF ENGLAND GOVERNOR EDDIE GEORGE THERE WAS NO DISAGREEMENT EITHER THE YEN STRENGTHENED SHARPLY FOLLOWING THE BREAKDOWN OF USJAPAN TRADE NEGOTIATIONS ON FEB 11 ALTHOUGH IT HAS STABILIZED IN RECENT DAYS JAPANESE FINANCE MINISTER HIROHISA FUJII SAID HE TOLD THE G7 THAT A RAPID RISE IN THE YEN WOULD HURT JAPAN'S EFFORT TO EXPAND ITS ECONOMY BUT FRENCH FINANCE MINISTER EDMOND ALPHANDERY SAID THE YEN'S LEVEL ISN'T THE MAIN OBJECT OF CONCERN AMONG THE G7 BEFORE THE G7 MEETING US TREASURY SECRETARY LLOYD BENTSEN TALKED WITH MR FUJII BUT THEY MADE NO PROGRESS TOWARD RESOLUTION OF THE TRADE DISPUTE BETWEEN WASHINGTON AND TOKYO OFFICIALS SAID ON THE QUESTION OF RUSSIA THE G7 REITERATED ITS SUPPORT FOR RUSSIAN REFORMS BUT THERE WERE MANY CRITICAL QUESTIONS FROM PARTICIPANTS SAID GERMAN FINANCE MINISTER THEO WAIGEL SENIOR RUSSIAN OFFICIALS ATTENDING THE MEETING AS GUESTS PROMISED TO MOVE TOWARD ECONOMIC STABILITY THE RUSSIAN OFFICIALS PRESENTED AMBITIOUS PLANS TO LOWER INFLATION TO BETWEEN 7 AND 9 A MONTH BY THE END OF THE YEAR DOWN FROM ABOUT 30 A MONTH NOW IN ADDITION THEY SKETCHED OUT PLANS TO LOWER THEIR BUDGET DEFICIT AND THE AMOUNT OF CREDIT CREATION TO FINANCE IT ECONOMIC REFORM IS THE PRECONDITION TO MORE AID FROM THE INTERNATIONAL MONETARY FUND THE G7 SAID BUT MR BENTSEN INDICATED THERE MIGHT BE SOME ROOM FOR FLEXIBILITY WHAT WE'RE TALKING ABOUT IS A CREDIBLE COMMITMENT TO REFORMS MR BENTSEN SAID IT DOESN'T MEAN THAT YOU HAVE TO WAIT TO HAVE THEM ALL CARRIED OUT THE G7 COMPRISING THE US JAPAN GERMANY BRITAIN ITALY CANADA AND FRANCE SUGGESTED THAT THE INDUSTRIAL COUNTRIES MAY AGAIN ALLOW RUSSIA TO RESCHEDULE SOME OF THE DEBTS IT OWES THEM BEFORE IT COMPLETES A STANDBY FINANCING PACKAGE WITH THE IMF SUCH IMF PACKAGES ARE GENERALLY A PRECONDITION FOR DEBTPAYMENT DELAYS RUSSIA WILL OWE ABOUT 11 BILLION IN PRINCIPAL AND INTEREST ON OFFICIAL DEBT THIS YEAR THE G7 DIDN'T PROMISE ANY NEW AID TO MOSCOW BUT IT URGED THE WORLD BANK TO WORK MORE AGGRESSIVELY TO LEND MONEY IT HAS EARMARKED TO BUILD INFRASTRUCTURE AND SOCIAL SAFETY NETS IN RUSSIA GERMANY'S MR WAIGEL HAD CALLED THE MEETING MAINLY TO RENEW SUPPORT FOR RUSSIA STILL THE RECENT RISE IN LONGTERM INTEREST RATES THROUGHOUT THE INDUSTRIAL WORLD SEEMED AT TIMES TO CAST AS MUCH A SHADOW ON THE MEETING AS DID RUSSIA'S UNCERTAIN REFORM STEPS SINCE DECEMBER LONGTERM RATES HAVE RISEN ABOUT ONETHIRD TO ONEHALF PERCENTAGE POINT IN ALL THE INDUSTRIALIZED COUNTRIES RATES HAVE RISEN BECAUSE THERE'S INCREASED GROWTH AROUND THE WORLD AND THERE'S MORE DEMAND FOR CREDIT MR BENTSEN SAID WITH THE US ECONOMY RECOVERING AND JAPAN AND GERMANY EXPECTED TO BEGIN RECOVERING THIS YEAR MR BENTSEN SAID THERE WAS A GENERAL SENSE THAT THE WORST OF THE RECENT DOWNTURN IS BEHIND US HE ALSO BLAMED SOME OF THE RECENT RISE ON MARKET SPECULATION ADDING I SEE NO UNDERLYING INFLATIONARY CAUSES FOR IT THE GERMAN CENTRAL BANK'S PRESIDENT HANS TIETMEYER SAID WE HAVE TO REMEMBER THAT THE RECENT DEVELOPMENT IN LONGTERM INTEREST RATES BEGAN IN THE US STRONGERTHANEXPECTED US GROWTH IS TRIGGERING FEARS OF FUTURE INFLATION THAT COULD CHANGE IF THE US COULD SHIFT SENTIMENT IN US CREDIT MARKETS WHICH WOULD HAVE THE EFFECT OF LOWERING LONGTERM RATES WORLDWIDE HE SAID THE IMPRESSION OF OUR AMERICAN COLLEAGUES IS THAT THIS WILL OCCUR I WOULD CONSIDER IT A POSITIVE DEVELOPMENT SAID MR TIETMEYER WHOSE OWN EFFORTS TO BRING DOWN OFFICIAL GERMAN INTEREST RATES IS BEING COMPLICATED BY JITTERY BOND MARKETS LAST WEEK FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WARNED CONGRESS THAT US SHORTTERM INTEREST RATES WILL RISE FURTHER BUT DIDN'T SAY WHEN OR BY HOW MUCH A SHORTTERM RATE RISE THAT CALMS INFLATIONARY FEARS SHOULD STABILIZE LONGTERM RATES A CONTINUING RISE IN LONGTERM BORROWING COSTS COULD SLOW THE RECOVERY IN THE US AND CHOKE OFF THE FRAGILE RECOVERIES IN GERMANY AND JAPAN ASKED IF THE G7 OFFICIALS WERE WORRIED ABOUT THIS MR BENTSEN SAID THEY WERE CONCERNED BUT IT'S NOTHING THEY DWELLED ON HE ADDED THAT THE GENERAL CONSENSUS WAS THAT THE RISE WASN'T DRIVEN BY INFLATION ASKED IF HE'S HAPPY WITH THE CURRENT VALUE OF THE YEN MR BENTSEN REPLIED I THINK I WANT TO STAY AWAY FROM THAT HE REITERATED THE US POLICY THAT THE FUNDAMENTALS SHOULD DICTATE EXCHANGE RATES THE IMF WHICH PARTICIPATED IN THE MEETING AND SEVERAL OTHER G7 NATIONS JOINED THE US IN SAYING THAT JAPAN ISN'T MOVING AGGRESSIVELY ENOUGH TO REDUCE ITS HUGE TRADE SURPLUS JAPAN HASN'T SHOWN ENOUGH INTEREST TO POLICIES FAVORABLE TO IMPORTS AND EXPANSION SAID ITALIAN TREASURY MINISTER PIERO BARUCCI IN AN ANALYSIS THE IMF ARGUED THAT JAPAN'S PACKAGE OF TAX CUTS AND SPENDING INCREASES WON'T STIMULATE DOMESTIC DEMAND FOR IMPORTS ENOUGH TO MAKE A SIGNIFICANT IMPACT IN ITS TRADE SURPLUS 9402280009 940228 O&Y'S US UNIT TO SELL BUILDING STAKE TO MORTGAGE HOLDER EASING DEBT LOAD BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG BILLIONAIRE LI KASHING AGREED TO ACQUIRE THE 51 INTEREST HE DOESN'T ALREADY OWN IN A TROUBLED NEW YORK OFFICE TOWER FROM OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY THE MOVE ADVANCES THE 5 BILLION FINANCIAL RESTRUCTURING OF OLYMPIA & YORK COS USA IT ALSO STRENGTHENS MR LI'S POSITION IN WHAT SOME OBSERVERS EXPECT WILL EVENTUALLY BECOME A BATTLE FOR OWNERSHIP CONTROL OF THE REALESTATE COMPANY VARIOUS PARTIES INCLUDING INVESTOR LEON BLACK AND SOME BIG INTERNATIONAL BANKS ALSO HAVE STAKES IN THE RESTRUCTURING BUT THE MANEUVERING IS SOMEWHAT PRELIMINARY AND THERE HAVEN'T BEEN ANY OVERT MOVES TO GAIN CONTROL OF THE COMPANY THE SALE OF THE BUILDING AT 60 BROAD STREET IN LOWER MANHATTAN FOR AN ESTIMATED 20 MILLION DOESN'T BRING ANY CASH TO O&Y USA INSTEAD THE TRANSACTION CANCELS PART OF THE 55 MILLION MORTGAGE ON THE BUILDING WHICH IS HELD BY MR LI THE DEAL ALSO REMOVES WHAT HAD BEEN A CASH DRAIN ON O&Y USA'S LIMITED FINANCIAL RESOURCES AS IT ATTEMPTS TO RESTRUCTURE ITS 5 BILLION OF DEBT WITHOUT RESORTING TO A BANKRUPTCYLAW FILING O&Y USA IS CONTINUING TO DO BUSINESS AND MOVE THE RESTRUCTURING FORWARD BY SHEDDING UNPROFITABLE BUILDINGS A PERSON FAMILIAR WITH THE REORGANIZATION PLAN SAID THE BALANCE OF MR LI'S LOAN ABOUT 35 MILLION WILL REMAIN AS AN UNSECURED CLAIM AGAINST O&Y USA PEOPLE KNOWLEDGEABLE ABOUT THE TRANSACTION SAID IN A DEBT WORKOUT SITUATION UNSECURED CREDITORS TYPICALLY ARE GIVEN THE OPTION TO EXCHANGE THEIR HOLDINGS FOR EQUITY POSITIONS IN THE COMPANY THE PEOPLE FAMILIAR WITH THE DEAL SAID MR LI HAS SIGNED A STANDSTILL AGREEMENT THAT PREVENTS HIM FROM FORCING THE COMPANY INTO A CHAPTER 11 BANKRUPTCYLAW FILING O&Y USA IS A SUBSIDIARY OF TORONTOBASED OLYMPIA & YORK DEVELOPMENTS THE GIANT PROPERTY DEVELOPER THAT REORGANIZED UNDER CANADIAN BANKRUPTCY LAW LAST YEAR AND IS NOW EFFECTIVELY CONTROLLED BY ITS CREDITORS MOSTLY CANADIAN BANKS THE US UNIT WASN'T PART OF ITS PARENT'S BANKRUPTCY FILING THE SALE OF THE BUILDING TO MR LI WHICH COULD BE ANNOUNCED AS EARLY AS TODAY COMES AMID PRELIMINARY MANEUVERS BY VARIOUS PARTIES THAT COULD EVENTUALLY ESCALATE INTO AN OWNERSHIP BATTLE FOR O&Y USA THE FOCUS OF ATTENTION CURRENTLY IS ON A KEY PIECE OF DEBT THAT IS SECURED BY JUNIOR CLAIMS ON SOME OF O&Y USA'S BEST PROPERTIES INCLUDING NEW YORK'S WORLD FINANCIAL CENTER THE DEBT ALSO COULD BE CONVERTED INTO AN EQUITY STAKE IN THE ENTIRE COMPANY AN INVESTMENT FUND RUN BY MR BLACK HAS OFFERED TO BUY THE 140 MILLION OF DEBT WHICH IS OWNED BY A GROUP OF BANKS LED BY JP MORGAN & CO MR LI AND THE PENSION FUND OF GENERAL MOTORS CORP ALSO ARE SAID TO BE CONSIDERING MAKING A BID FOR THE DEBT AND SEVERAL BIG CREDITORS TO O&Y USA'S CANADIAN PARENT INCLUDING CANADIAN IMPERIAL BANK OF COMMERCE AND HONGKONG SHANGHAI BANKING CORP A UNIT OF HSBC HOLDINGS PLC ARE UNDERSTOOD TO BE INTERESTED IN ACQUIRING THE DEBT THERE'S ALWAYS A COMPETITION FOR A MORE SOLID POSITION AMONG UNSECURED CREDITORS A BANKER SAID JP MORGAN REITERATED AN EARLIER COMMENT THAT IT CONTINUES TO EXAMINE VARIOUS ALTERNATIVES TO MAXIMIZE THE VALUE OF THE DEBT OTHER PARTIES DIDN'T RESPOND TO REQUESTS FOR COMMENT WITH THE PURCHASE OF 60 BROAD STREET MR LI THROUGH HIS DRAGON HOLDINGS LTD INHERITS A BUILDING THAT WAS LEFT TWOTHIRDS EMPTY AFTER DREXEL BURNHAM LAMBERT INC FILED FOR BANKRUPTCYLAW PROTECTION IN 1990 NEGOTIATIONS CURRENTLY ARE UNDER WAY TO RENEW THE LEASE OF THE CURRENT MAIN TENANT KIDDER PEABODY WHICH EXPIRES AT THE END OF THIS YEAR 9402280008 940228 POLITICS & POLICY COUPLE ACCUSED IN SPY CASE ALLEGEDLY ACTED OUT OF TASTE FOR HIGH LIFE ACQUIRED IN MEXICO BY THOMAS E RICKS AND JOSE DE CORDOBA STAFF REPORTERS OF THE WALL STREET JOURNAL THE FIRST BIG POSTCOLD WAR ESPIONAGE CASE BEGAN WITH A LOVE AFFAIR IN MEXICO CITY HE WAS A CENTRAL INTELLIGENCE AGENCY BRAT REELING FROM A FAILED MARRIAGE SHE WAS A 30YEAR OLD MULTILINGUAL DIPLOMAT FROM COLOMBIA WHO HAD ATTENDED PRINCETON READ HEGEL AND KANT AND TOOK TELEPHONE CALLS FROM HER COUNTRY'S PRESIDENT IN HER APARTMENT AND THE COUNTRY WHERE THEY WERE POSTED MEXICO OF THE EARLY 1980S WAS A LOCUS OF OFTENSHADOWY INTERNATIONAL ACTIVITY WITH THE US AND THE SOVIET UNION EACH MAINTAINING SUBSTANTIAL OPERATIONS THERE TO MONITOR THE UPHEAVALS IN LATIN AMERICA ALDRICH H AMES AND MARIA DEL ROSARIO CASAS MET AT A LUNCHEON OF THE CITY'S DIPLOMATIC CLUB IT WASN'T LOVE AT FIRST SIGHT RECALL PEOPLE WHO WATCHED THE TWO BUT RATHER A GRADUAL WARMING BETWEEN TWO MATURE PEOPLE WHO SHARED A LITERARY BENT A LIBERAL CAST OF MIND AND THEIR WORK FOR THE CIA THE RELATIONSHIP BLOSSOMED INTO MARRIAGE AND THEN ACCORDING TO THE FBI AN ELABORATE ALMOST A DECADELONG CONSPIRACY TO BETRAY THE US IN WHAT MAY BE ONE OF THE MOST DAMAGING SPY SCANDALS EVER MONEY AS IS OFTEN THE CASE APPEARS TO BE THE REASON WHY THESE TWO PEOPLE WHO BOTH BEGAN THEIR RELATIONSHIP WITH IMPORTANT DIPLOMATIC ASSIGNMENTS ALLEGEDLY TURNED TO A CRIMINAL PATH ACCORDING TO THE FEDERAL BUREAU OF INVESTIGATION MOSCOW PAID THE AMESES 15 MILLION FOR HIGHLY SENSITIVE INTELLIGENCE ON THE US SOME WASHINGTON INSIDERS CONTEND THEIR ALLEGED DISCLOSURES CAUSED THE EXECUTIONS OF 10 RUSSIANS CAUGHT HELPING THE US THE AMESES' ARREST ALSO IS SHAKING THE BUDDING USRUSSIAN FRIENDSHIP WHICH THE CLINTON ADMINSTRATION HAS HELD OUT AS A CORNERSTONE OF ITS FOREIGN POLICY IN RESPONSE TO THE UNFOLDING SPY SCANDAL THE CLINTON ADMINISTRATION ON FRIDAY EXPELLED RUSSIA'S TOP INTELLIGENCE OFFICER IN THE US ALEKSANDR LYSENKO AFTER MOSCOW REFUSED TO WITHDRAW HIM VOLUNTARILY US OFFICIALS SAID THEY EXPECTED THE YELTSIN GOVERNMENT TO RETALIATE BY EXPELLING THE TOP CIA OFFICIAL FROM THE US EMBASSY IN MOSCOW POSSIBLY AS EARLY AS TODAY WE'RE HOPING IT WILL STOP THERE SAYS A SENIOR US OFFICIAL BUT WHERE IT STARTED WAS THE HIGH LIFE IN MEXICO CITY SHE WAS BRIGHT ALERT HAD PUT IN A YEAR AT PRINCETON AND SHE CAME FROM A DECENT FAMILY RECALLS IRWIN RUBENSTEIN A FORMER US DIPLOMAT WHO SERVED WITH MR AMES IN MEXICO HE AND MR AMES WERE PART OF A GROUP OF FOUR CLOSE FRIENDS WHO WORKED IN THE POLITICAL SECTION OF THE EMBASSY AND FREQUENTLY WENT FOR LONG LUNCHES WHERE THEY DISCUSSED BOOKS MAINLY CONTEMPORARY FICTION AND POLITICAL SCIENCE AND DEBATED POLITICAL ISSUES IN AN EASYGOING WAY MR AMES'S FRIENDS AT THE EMBASSY WERE PLEASED WITH THE MATCH IN HIS FIRST MONTHS AT THE EMBASSY HAVING LEFT BEHIND A CRUMBLING MARRIAGE IN THE US MR AMES DRANK HEAVILY HE CUT BACK ON THAT WHEN HE BEGAN DATING ROSARIO AS SHE PREFERRED TO BE CALLED SHE DID SEEM TO BE A POSITIVE INFLUENCE ON GETTING HIM TO NOT GET SLOPPY DRUNK AS HE DID ON OCCASION AROUND CHRISTMAS OF 1981 RECALLS A STATE DEPARTMENT OFFICIAL WHO WORKED ACROSS THE HALL FROM MR AMES IN THE EMBASSY THE CIA STATION IN MEXICO CITY WAS UNDER INTENSE PRESSURE FROM HEADQUARTERS THE STATION FAILED TO PREDICT MEXICO'S NATIONALIZATION OF PRIVATE BANKS IN SEPTEMBER 1982 MEANWHILE THE REAGAN ADMINISTRATION WAS RIVETED ON THE OPERATIONS OF SALVADORAN LEFTISTS AND NICARAGUAN SANDINISTAS WHO PASSED THROUGH MEXICO AND CONSTANTINE MENGES INSTALLED AS THE NEW NATIONAL INTELLIGENCE OFFICER FOR LATIN AMERICA HAD PERSUADED CIA CHIEF WILLIAM CASEY THAT MEXICO COULD WELL BE THE NEXT IRAN AS PART OF ITS EFFORT TO INTENSIFY INTELLIGENCEGATHERING PROWESS THE MEXICO CITY STATION RECRUITED MS CASAS AS AN ACCESS AGENT RECALLS A FRIEND OF MR AMES SHE'D BUMP UP AGAINST SOVIETBLOC PEOPLE ESPECIALLY CUBANS SHE TRIED TO DRAW THEM OUT ASSESS THEM GLEAN INFORMATION FROM THEM IT HELPED THAT MS CASAS'S GREAT LOVE AFTER LITERATURE WAS CUBAN MUSIC SHE BOASTED AN EXTENSIVE COLLECTION OF SALSA RECORDS THEY LIVED A SWANK LIFE OF THE DIPLOMATIC SET HOUSING ALLOWANCES EXPENSE ACCOUNTS AND LONG LUNCHES AT THE BISTROS AND CAFES ACROSS THE STREET FROM THE EMBASSY RICK AMES'S COZY BOOKLINED APARTMENT WAS IN THE PINK ZONE AN ELEGANT DIPLOMATIC QUARTER OF PALM GARDENS BEHIND PINK STUCCO WALLS PURSUING HIS HIGHSCHOOL HOBBY OF AMATEUR DRAMATICS HE PARTICIPATED FREQUENTLY IN THE US EMBASSY'S PRODUCTIONS OF PLAYS WEEKENDS OFTEN BROUGHT TRIPS SOMETIMES TO VINEYARDS AND OTHER SPOTS IN THE HILLS SPONSORED BY THE DIPLOMATIC CLUB WHERE HE FIRST MET MS CASAS THE OFFICE OF THE MEXICAN PRESIDENT SOMETIMES PROVIDED A PASSENGER JET FOR LONGER TRIPS SUCH AS THOSE TO THE BEACHES OF ACAPULCO AND THE RUINS OF THE YUCATAN THE GOOD LIFE MR AMES AND MS CASAS CAME TO ENJOY IN MEXICO CRASHED IN OCTOBER 1983 WHEN MR AMES WAS REASSIGNED TO WASHINGTON UNLIKE MANY IN THE AGENCY MR AMES DIDN'T USE THE OPPORTUNITY OF THE FOREIGN POSTING WITH GENEROUS OVERSEAS BENEFITS AND AN EXPENSE ACCOUNT TO BUILD A NEST EGG FOR THE INEVITABLE RETURN TO THE HIGHER LIVING COSTS OF WASHINGTON DC AND A MESSY DIVORCE FURTHER DEPLETED HIS INCOME MR AMES HAD TOLD HIS WIFE STILL LIVING IN NEW YORK THAT HE WAS HEAD OVER HEELS IN LOVE WITH ANOTHER WOMAN ONE FRIEND RECALLS SHE RESPONDED BY TAKING HIM TO THE CLEANERS IN THE DIVORCE THE FIRST MRS AMES DIDN'T RETURN CALLS SEEKING COMMENT WHEN HE CAME BACK FROM MEXICO CITY HE WAS PRETTY WIPED OUT FINANCIALLY RECALLS A COWORKER FROM THIS PERIOD THE DIVORCE WASN'T VERY PLEASANT FOR HIM DESPITE HIS NEW JOB HE HAD BEEN PROMOTED TO CHIEF OF THE SOVIET BRANCH OF THE CIA'S COUNTERINTELLIGENCE GROUP HE STILL HELD THE MIDLEVEL GOVERNMENT RANKING OF GS14 MAKING LESS THAN 54000 AND MS CASAS NO LONGER WAS ON THE CIA PAYROLL A FEW MONTHS LATER SHE MOVED TO WASHINGTON TO JOIN HIM THE COUPLE HAD RATCHETED DOWN FROM THREE INCOMES HIS HERS AS A DIPLOMAT AND WHATEVER THE CIA PAID HER TO JUST HIS ONE THEY FOUND THEMSELVES LIVING IN A SPARTAN CONDOMINIUM ON THE ROUTE 7 COMMERCIAL STRIP IN NORTHERN VIRGINIA THE FIRST MRS AMES APPARENTLY HAD KEPT ALL THE FURNITURE IN THE SUMMER 1985 THE COUPLE MARRIED BUT THE WEDDING WAS A BAREBONES AFFAIR AT A UNITARIAN CHURCH IN A VIRGINIA SUBURB OF WASHINGTON DC ONLY ABOUT 30 PEOPLE ATTENDED MAINLY RELATIVES WITH A SMATTERING OF COLLEAGUES FROM THE AGENCY THE CEREMONY WAS FOLLOWED BY A LONG WAIT FOR THE PHOTOGRAPHER AND THEN A GLASS OF WINE WITH NO RECEPTION RECALLS ONE GUEST MRS AMES HAD KNOWN FINANCIAL CONSTRAINTS BEFORE ALTHOUGH SHE CAME FROM ONE OF BOGOTA'S WELLRESPECTED BUENAS FAMILIAS SHE WAS NEVER WEALTHY A METHODICAL A STUDENT WHO WENT INTO TEACHING AT THE UNIVERSITY OF THE ANDES SHE DIDN'T OWN A CAR AND WOULD EITHER BORROW HER MOTHER'S HUMBLE FIAT OR TAKE PUBLIC TRANSPORTATION SOMETIMES SHE WOULD CADGE SMALL AMOUNTS OF MONEY TO PAY FOR LUNCH OR A BUS RIDE HOME IT WAS A TIGHT LIFE SAYS GRETEL WERNHER THE DEAN OF THE HUMANITIES DEPARTMENT ALTHOUGH MR AMES HAD A NUMBER OF GOOD JOBS HE ALSO HAD PROBLEMS ALAN WOLFE WHO SUPERVISED MR AMES'S WORK IN ROME FROM 1986 TO 1989 DESCRIBES HIM AS A LACKLUSTER OFFICER AND A DRUNK ADDING I HAD TO COUNSEL HIM ON THE EXTENT TO WHICH HE WAS DRINKING HIS LUNCH THE SUMMER OF 1985 MR AMES WAS DESIGNATED TO MEET VITALY YURCHENKO WHO HAD BEEN HEAD OF COUNTERINTELLIGENCE IN THE KGB'S MOST IMPORTANT DEPARTMENT BUT WHO WAS DEFECTING TO THE US MR AMES OVERSLEPT THE MORNING HE WAS SCHEDULED TO MEET THE HIGHLEVEL DEFECTOR AT ANDREWS AIR FORCE BASE PERHAPS THE KGB PROVIDED A WAY OUT OF LIVES THAT SEEMED FULL OF MUDDLES AND SMALL HUMILIATIONS ACCORDING TO COURT DOCUMENTS THE CIA CONNECTION ENABLED THE AMESES TO PURCHASE A 540000 HOUSE IN ARLINGTON VA AND A 1992 JAGUAR THEY ALSO ACQUIRED A VACATION APARTMENT IN THE COLONIAL CITY OF CARTAGENA COLOMBIA AND AN APARTMENT IN THE FASHIONABLE NORTHERN PART OF BOGOTA SUPPORTING THE CONCLUSION THAT MONEY RATHER THAN POLITICS DROVE THE ESPIONAGE ARRANGEMENTS WAS THE WIDELY HELD PERCEPTION THAT NEITHER OF THE AMESES HELD STRONG POLITICAL OPINIONS AT A TIME WHEN THE UNIVERSITY OF THE ANDES WAS A HOTBED OF ROMANTIC LEFTWING CAUSES MRS AMES IS REMEMBERED AS BEING APOLITICAL SHE DIDN'T HAVE AN IDEOLOGY DEAN WERNHER SAYS STILL SOME RECENT CHARACTERIZATIONS OF THE AMESES AS DRAB FAILURES HAVE BECOME CARICATURED NOTING THAT MR AMES LANDED A SERIES OF PLUM JOBS IN NEW YORK MEXICO CITY ROME AND AT CIA HEADQUARTERS MR RUBENSTEIN THE FORMER US DIPLOMAT WHO SERVED WITH MR AMES IN MEXICO ASKS IF HE WAS NO GOOD WHY DID THEY KEEP HIM AROUND AND GIVE HIM DECENT JOBS INDEED MR AMES'S POTENTIAL USEFULNESS TO MOSCOW STEMMED FROM HIS ACCESS TO CRITICAL INFORMATION AS RECENTLY AS LAST YEAR MR AMES TRAVELED TO THE FORMER SOVIET REPUBLIC OF GEORGIA ON AGENCY BUSINESS NOW THAT VISIT HAS RAISED SOME NEW WORRIES BECAUSE THE CIA STATION CHIEF IN GEORGIA WAS SHOT AND KILLED IN AUGUST AN INCIDENT THAT INITIALLY WAS EXPLAINED AS A CHANCE MISHAP EVEN IN HIS LAST CIA JOB TRACKING DRUG TRAFFICKING IN THE BLACK SEA AREA HE STILL WOULD SHOW UP FREQUENTLY IN THE SOVIET COUNTERINTELLIGENCE SECTION A FORMER CIA OFFICER SAYS HIS PRESENCE DIDN'T RAISE ALARMS HIS NEW WORK WAS RELATED AND HE HAD BEEN A SCHMOOZER SINCE HIS DAYS IN THE 1960S AS AN AGENCY RECORD CLERK ONE OF HIS FAVORITE THINGS WAS TO WALK AROUND TALKING TO PEOPLE FILLING THE ROOM WITH SMOKE THIS PERSON SAYS I THINK HE'D DONE IT ALL HIS LIFE