SYDNEY A CONSORTIUM INCLUDING NEWS CORP AND THE AUSTRALIAN GOVERNMENT'S TELECOMMUNICATION COMPANY TELSTRA CORP HAS STARTED COURT ACTION TO CHALLENGE THE ALLOCATION OF AUSTRALIA'S FIRST TWO SATELLITE PAYTELEVISION LICENSES TO GROUPS BACKED BY US COMPANIES NEWS CORP SAID NEWS CORP RUPERT MURDOCH'S INTERNATIONAL MEDIA AND ENTERTAINMENT COMPANY SAID IN A STATEMENT THAT ITS LEGAL ACTION CHALLENGES THE LINKS BETWEEN THE TWO SUCCESSFUL LICENSE BIDDERS THE LEVEL OF FOREIGN OWNERSHIP IN EACH COMPANY AND THE LEVEL OF DISCLOSURE TO BROADCASTING AUTHORITIES BY ONE OF THE LICENSE HOLDERS THE TWO SATELLITE PAYTV LICENSES WERE AWARDED BY THE GOVERNMENT TO UCOM PTY LTD AND AUSTRALIS MEDIA LTD AFTER A PROTRACTED AND CONTROVERSIAL TENDER PROCESS UCOM WON WITH A BID OF 77 MILLION AUSTRALIAN DOLLARS US558 MILLION IT ANNOUNCED IN JANUARY THAT CENTURY COMMUNICATIONS CORP OF THE US WILL EMERGE WITH 20 OF THE COMPANY THROUGH A JOINT VENTURE WITH CONTINENTAL VENTURE CAPITAL LTD THE SECOND LICENSE IS HELD BY AUSTRALIS MEDIA WHICH HAS ANNOUNCED IT WILL FUND THE A1170 MILLION COST OF THE LICENSE BY ISSUING SECURITIES TO THE LENFEST GROUP WHICH IS MAJORITY OWNED BY TELECOMMUNICATIONS INC'S LIBERTY MEDIA CORP OF THE US NEWS CORP SAID ITS CONSORTIUM MEMBERS THINK THE AUSTRALIAN BROADCASTING AUTHORITY THE NATIONAL BROADCASTING MEDIA WATCHDOG HADN'T BEEN ABLE TO PROPERLY INVESTIGATE THE SUITABILITY OF THE LICENSEES OR THEIR COMPLIANCE WITH THE PAYTV LEGISLATION 9402280006 940228 PUROLATOR TO BUY BACK SHARES TULSA OKLA PUROLATOR PRODUCTS CO WILL BUY BACK AS MANY AS 560000 COMMON SHARES OR 5 OF ITS 112 MILLION OUTSTANDING COMMON SHARES IN A NEWS RELEASE THE COMPANY SAID IT WILL BUY THE SHARES FROM TIME TO TIME THE COMPANY SAID THAT AT CURRENT PRICES IT CONSIDERS THE BUYBACK AN ATTRACTIVE USE OF ITS FUNDS 9402280005 940228 LETTERS TO THE EDITOR POSTMORTEM FOR A STURGEON IN YOUR LATEST CRITICISM OF THE FISH AND WILDLIFE SERVICE'S ATTEMPTS TO IMPLEMENT THE ENDANGERED SPECIES ACT DEATH OF A STURGEON REVIEW & OUTLOOK JAN 26 YOU ONCE AGAIN MADE SELECTIVE USE OF THE FACTS TO PAINT A MISLEADING PICTURE WHILE IT IS TRUE THE FISH DIED ON FRIDAY DEC 31 THE SERVICE WAS NOT INFORMED UNTIL MONDAY JAN 3 THE SERVICE THEN IMMEDIATELY MADE THE FACT PUBLIC THE STURGEON WAS WRAPPED AND FROZEN AS WAS PREARRANGED IN THE EVENT THE FISH DIED THIS WAS NECESSARY TO PREVENT DETERIORATION AND TO ENSURE THAT A NECROPSY WOULD BE POSSIBLE THE SERVICE DID NOT SUGGEST THAT THE FISH BE PRESERVED IN FORMALDEHYDE AS YOU REPORTED WE WISHED TO LIMIT INTRUSIVE SAMPLECOLLECTING OF THE STURGEON'S BLOOD AND TISSUE WHILE IT WAS ALIVE TO MINIMIZE TRAUMA TO THE FISH FORMAL REQUESTS FOR BLOOD SAMPLES FROM THE ARMY CORPS OF ENGINEERS WERE NOT RECEIVED UNTIL AFTER THE FISH DIED FURTHER WE OFFERED THE ALABAMATOMBIGBEE RIVERS COALITION AN OPPORTUNITY TO EXAMINE AND MEASURE THE FISH ON JAN 5 ONLY TWO DAYS AFTER WE WERE NOTIFIED OF ITS DEATH THE LIMITED TIME ALLOWED FOR VIEWING MEASURING AND PHOTOGRAPHING THE FROZEN SPECIMEN WAS NECESSARY TO ENSURE THAT IT DID NOT BEGIN TO THAW AND DETERIORATE ADDITIONAL TIME COULD HAVE BEEN ARRANGED HAD THERE BEEN A REQUEST THE COALITION WAS INFORMED THAT WE INTENDED TO CONDUCT A NECROPSY AND TAKE TISSUE SAMPLES FOR GENETIC TESTING THOSE SAMPLES WILL BE MADE AVAILABLE TO THE COALITION AND TO OTHER INTERESTS THE FISH AND WILDLIFE SERVICE'S GOAL IS TO ENSURE THAT ANY FUTURE DECISIONS CONCERNING THE STATUS OF THE ALABAMA STURGEON REPRESENT THE BEST SCIENTIFIC INFORMATION AVAILABLE 9402280004 940228 DIVIDEND NEWS SBARRO INC SBARRO INC COMMACK NY BOOSTED ITS QUARTERLY DIVIDEND 20 TO 24 CENTS A SHARE FROM 20 CENTS THE NEW DIVIDEND WILL BE PAID APRIL 6 TO SHAREHOLDERS OF RECORD MARCH 22 SBARRO OPERATES A NATIONAL CHAIN OF ITALIAN RESTAURANTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY SBARRO SHARES ROSE 25 CENTS TO 4150 9402280003 940228 JP MORGAN SAYS INVESTMENT IN BANESTO RESULTED IN LOSS OF 60 OF MARKET VALUE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL JP MORGAN & CO CHAIRMAN DENNIS WEATHERSTONE RESPONDED TO CONGRESSIONAL INQUIRIES ABOUT MORGAN'S INVOLVEMENT IN A SPANISH BANK SEIZED BY REGULATORS WRITING THAT THE BANK'S INVESTMENT IN BANCO ESPANOL DE CREDITO HAS LOST 60 OF ITS MARKET VALUE MR WEATHERSTONE WAS REPLYING TO A REQUEST BY HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ FOR MORGAN TO ANSWER A SERIES OF QUESTIONS ABOUT ITS ROLE IN BANESTO AS THE SPANISH BANK IS KNOWN MR WEATHERSTONE WROTE THAT THE 1 BILLION CORSAIR PARTNERSHIP L P CLOSEDEND INVESTMENT FUND WASN'T A VULTURE FUND AS MR GONZALEZ HAS DESCRIBED IT BUT RATHER A FUND THAT TAKES MINORITY STAKES IN BANKS NEEDING FINANCIAL ASSISTANCE SOCALLED VULTURE FUNDS INVEST IN SICK COMPANIES THAT ARE EXPECTED TO GET WELL AND PROSPER LAST SUMMER CORSAIR INVESTED 1625 MILLION FOR A 79 STAKE IN THE SPANISH BANK AFTER APPROVAL BY THE BANK OF SPAIN AND THE US FEDERAL RESERVE THE LETTER SAID A SEPARATE MONEYMANAGEMENT UNIT OF JP MORGAN WITH NO TIES TO CORSAIR HELD AT LEAST 200000 SHARES OF BANESTO MR WEATHERSTONE SAID IT WAS PREMATURE TO ASSESS THE ACTUAL LOSS TO CORSAIR BANESTO'S LARGEST SHAREHOLDER SINCE LATE 1992 MORGAN EARNED MORE THAN 26 MILLION FOR VARIOUS SERVICES TO BANESTO AND IT HAD A ONEYEAR AGREEMENT TO PROVIDE ADDITIONAL FINANCIAL ADVICE BEGINNING IN JANUARY 1994 ACCORDING TO THE LETTER THAT MANDATE WAS TERMINATED IN LIGHT OF THE SEIZURE OF BANESTO IN DECEMBER THE LETTER ALSO SHED LIGHT ON MORGAN'S RELATIONSHIP WITH MARIO CONDE THE OUSTED CHAIRMAN OF BANESTO AND INDICATES THAT MR CONDE WHO INVESTED 50 MILLION IN BANESTO WOULD HAVE BEEN WELL COMPENSATED IF BANESTO HAD TURNED AROUND FIRST CORSAIR AND MR CONDE AGREED THAT NEITHER WOULD SELL SHARES IN BANESTO FOR TWO YEARS AND THAT EACH PARTY HAD THE RIGHT OF FIRST REFUSAL FOR ANY SHARES THAT THEY WERE SELLING ALSO MR CONDE HAD AN OPTION TO PURCHASE AS MUCH AS 5 OF BANESTO'S SHARES AT THE PRICE CORSAIR PAID ASSUMING MR CONDE WAS STILL CHAIRMAN LASTLY MR CONDE WOULD HAVE RECEIVED ANOTHER 5 OF BANESTO'S STOCK FIVE YEARS AFTER CORSAIR'S INVESTMENT IF THE MORGAN FUND EARNED 40 OR MORE ON ITS INVESTMENT MR WEATHERSTONE SAID THESE WERE INTENDED TO PROVIDE AN INCENTIVE FOR MR CONDE TO CONTINUE AS CHAIRMAN AND WORK FOR THE BENEFIT OF SHAREHOLDERS THE AGREEMENTS WERE TERMINATED WHEN MR CONDE WAS FIRED 9402280002 940228 BUSINESS BRIEF AMERICAN TELEPHONE & DATA INC CONCERN GETS 650000 LOAN FROM INVESTORS IN CANADA AMERICAN TELEPHONE & DATA INC SAID IT GOT A LOAN OF 650000 FROM A PRIVATELY HELD INVESTMENT GROUP BASED IN VANCOUVER BRITISH COLUMBIA TO FURTHER FINANCE ITS OPERATIONS THE NEWPORT BEACH CALIFBASED COMPANY SAID THE LOAN IS SECURED BY A DEBENTURE ON AN UNDISCLOSED AMOUNT OF OUTSTANDING SHARES OF ITS TW COMMUNICATIONS INC UNIT AND ADDITIONALLY SECURED BY CONTRACTS WITH ITS LONGDISTANCE CARRIERS AND CUSTOMERS THE COMPANY SAID THE LENDER ALSO RECEIVES AN OPTION TO PURCHASE COMMON SHARES AT 2 A SHARE OVER A TWOYEAR PERIOD IN ADDITION THE COMPANY SAID THE LENDER WILL APPOINT THREE NEW BOARD MEMBERS TO REPLACE EXISTING DIRECTORS 9402280001 940228 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BAYOU STEEL CORP 75 MILLION OF FIRSTMORTGAGE NOTES DUE MARCH 1 2001 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS AND ARE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHEMICAL SECURITIES INC DAIRY MART CONVENIENCE STORES INC 75 MILLION OF SENIOR SUBORDINATED NOTES DUE MARCH 15 2004 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO DOMAN INDUSTRIES LTD 425 MILLION OF SENIOR NOTES DUE MARCH 15 2004 PRICED AT PAR TO YIELD 875 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE MARCH 3 1997 PRICED INITIALLY AT PAR TO YIELD 519 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 13 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE MARCH 7 2001 PRICED AT PAR TO YIELD 631 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 33 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC NIAGARA MOHAWK POWER CORP 210 MILLION OF FIRSTMORTGAGE BONDS DUE MARCH 1 2001 PRICED AS 6875 AT 9965 TO YIELD 6939 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO REEBOK INTERNATIONAL LTD THREE MILLION COMMON SHARES PRICED AT 33125 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC TOTAL CONTAINMENT INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 950 EACH THROUGH UNDERWRITERS LED BY PENNSYLVANIA MERCHANT GROUP LTD DELAWARE GROUP GLOBAL DIVIDEND & INCOME FUND INC 67 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SOUTHERN AFRICA FUND INC INITIAL OFFERING OF SIX MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 1711 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 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 720 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199450 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS ABBEY NATIONAL FIRST CAPITAL BV UK PARENT 100 MILLION CANADIAN DOLLARS OF COLLARED FLOATINGRATE EURONOTES DUE MARCH 25 2004 AT ISSUE AND REOFFER PRICE 995 VIA WOOD GUNDY INC PAYABLE SEMIANNUALLY AT 30 BASIS POINTS BELOW SIXMONTH BANKERS' ACCEPTANCE RATE FOR CANADIAN DOLLARS MINIMUM COUPON 6375 MAXIMUM 9 GUARANTOR ABBEY NATIONAL PLC FEES 05 HYDROELECTRICA ALICURA ARGENTINA 175 MILLION OF 8375 EUROBONDS DUE MARCH 15 1999 AT ISSUE AND REOFFER PRICE 99578 VIA BOOKRUNNER LEHMAN BROTHERS INTERNATIONAL BONDS YIELD 848 A MARGIN OF 285 BASIS POINTS OVER WHEN ISSUED FIVEYEAR US TREASURY FEES 1125 PAYABLE SEMIANNUALLY ISPAT MEXICANA SA DE CV MEXICO 175 MILLION OF 10375 EUROBONDS DUE MARCH 15 2001 AT ISSUE AND REOFFER PRICE PAR VIA CS FIRST BOSTON LTD BONDS YIELD MARGIN OF 443 BASIS POINTS OVER COMPARABLE US TREASURY BONDS CALLABLE ON MARCH 15 1999 AT 103458 AND ON MARCH 15 2000 AT 10179 ISSUER MUST REPURCHASE 30 OF FACE AMOUNT AT 110 IF IT DECIDES ON OR BEFORE MARCH 15 1997 TO UNDERTAKE INITIAL PUBLIC OFFERING OF ITS SHARES FEES 25 PAYABLE SEMIANNUALLY 9402280081 940131 THE OUTLOOK GORE'S DATA HIGHWAY ANOTHER ENTITLEMENT BY ALAN MURRAY WASHINGTON AMID THE CELEBRATION OF THE 1992 DEMOCRATIC CONVENTION CAME SOME JARRING WORDS FROM FORMER REP BARBARA JORDAN OF TEXAS WE MUST ADDRESS THE QUESTION OF ENTITLEMENTS SHE TOLD DEMOCRATS IN HER KEYNOTE ADDRESS THAT'S NOT EASY SHE ADDED REPEATING THE PHRASE TWICE FOR EMPHASIS BUT WE HAVE TO DO IT WE HAVE TO DO IT MS JORDAN'S BOOMING MESSAGE SIGNALED THE EMERGENCE OF A NEW RHETORICAL CONSENSUS IN MAINSTREAM AMERICAN POLITICS ENTITLEMENTS A FUZZY WORD FOR GOVERNMENT BENEFITS RANGING FROM SOCIAL SECURITY TO FOOD STAMPS MUST BE CUT THE MANTRA WAS HEARD THROUGHOUT LAST YEAR'S BUDGET DEBATE AND DEMOCRATIC REP MARJORIE MARGOLIESMEZVINSKY FROM PHILADELPHIA'S MAIN LINE EVEN HELD A HIGHLY PUBLICIZED CONFERENCE LAST MONTH ON THE FUTURE OF ENTITLEMENTS ATTENDED BY PRESIDENT CLINTON BUT ACTIONS SPEAK LOUDER THAN WORDS IN THE MIDST OF THIS FLURRY OF ANTIENTITLEMENT TALK THE CLINTON ADMINISTRATION HAS LAID THREE LARGE NEW ENTITLEMENT PROGRAMS ON THE TABLE THE FIRST IS A HEALTHCARE REFORM PROPOSAL THAT ENTITLES EVERY AMERICAN TO A GENEROUS HEALTHINSURANCE PLAN THE SECOND IS A WELFAREREFORM PLAN THAT WINS PRAISE FROM CONSERVATIVES BY PROMISING TO END WELFARE AS WE KNOW IT BUT IN FACT AMOUNTS TO A COSTLY PROMISE OF A JOB FOR EVERY ABLE AMERICAN AND THE THIRD AND LEAST UNDERSTOOD IS VICE PRESIDENT AL GORE'S CALL FOR UNIVERSAL SERVICE ON THE INFORMATION SUPERHIGHWAYTHE POPULAR NAME FOR A BROADBAND SYSTEM THAT ALLOWS TWOWAY COMMUNICATIONS ON MULTIPLE CHANNELS THE NATION MUST AVOID CREATING A SOCIETY OF INFORMATION HAVES SEPARATE FROM INFORMATION HAVENOTS MR GORE SAID IN A RECENT SPEECH TO HOLLYWOOD HAVES SUCH AS DISNEY'S MICHAEL EISNER IT IS CRITICALLY IMPORTANT THAT ALL CARRIERS MUST BE OBLIGED TO CONTRIBUTE ON AN EQUITABLE AND COMPETITIVELY NEUTRAL BASIS TO THE PRESERVATION AND ADVANCEMENT OF UNIVERSAL SERVICE TRANSLATION WE MUST TAX PHONE CABLE AND OTHER INFORMATION SERVICES TO SUBSIDIZE ACCESS TO THE SUPERHIGHWAY FOR EVERYONE THE NOTION OF GUARANTEEING EVERYONE ACCESS TO A SERVICE THAT DOESN'T YET EXIST MAY SEEM MORE AMUSING THAN DISTURBING AFTER ALL WHAT IS BEING GUARANTEED THE INALIENABLE RIGHT TO SHOP FROM HOME BY VIDEO OR TO WATCH INTERACTIVE COURT TELEVISION AND CAST A PERSONAL VERDICT IN THE MENENDEZ TRIAL BUT MR GORE AND HIS FOLLOWERS INSIST THAT TRAFFIC ON THE INFORMATION SUPERHIGHWAY WILL INCLUDE INVALUABLE EDUCATIONAL PROGRAMS HEALTHCARE HOT LINES AND JOBPOSTING SERVICES ANYONE WITHOUT A VEHICLE COULD BE LEFT ON THE SHOULDER OF LIFE ADMINISTRATION OFFICIALS ALSO ARGUE THAT THEIR PROPOSAL WOULD MERELY EXPAND ON THE HUGE SUBSIDIES ALREADY IMPLICIT IN THE CURRENT REGULATED PHONE SYSTEM BUSINESS AND LONGDISTANCE USERS NOW SUBSIDIZE TELEPHONE RATES FOR RESIDENTIAL AND RURAL USERS BY AS MUCH AS 20 BILLION OR MORE A YEAR BUT THAT HIDDEN TELEPHONE SUBSIDY EXHIBITS THE VERY ATTRIBUTES THAT MAKE MORE EXPLICIT GOVERNMENTENTITLEMENT PROGRAMS SO VEXING ONLY A SMALL PORTION OF THE TELEPHONE BENEFITS LESS THAN A BILLION DOLLARS SAYS ELI NOAM PROFESSOR OF FINANCE AND ECONOMICS AT THE COLUMBIA BUSINESS SCHOOL GOES TO THE TRULY NEEDY MOST OF THE SUBSIDY GOES TO THE MIDDLE CLASS AND A NOTINCONSEQUENTIAL PORTION GOES TO THE VERY AFFLUENT SUBSIDIZING FOR INSTANCE PHONE LINES TO TAOS NM AND ASPEN COLO THE SUBSIDY PLAN PROPOSED BY MR GORE WILL PROBABLY BE SIMILAR THE ADMINISTRATION HAS NO THOUGHT OF REQUIRING THAT SUBSIDIES GO ONLY TO THE NEEDY WHICH WOULD UNDERCUT THE POLITICAL BACKING THEY SEEK FROM POWERFUL SENATORS IN RURAL STATES WHO WANT THE SUBSIDIES TO SERVE THEIR CONSTITUENTS INSTEAD THE ADMINISTRATION'S PLAN WILL PROBABLY LET STATES DETERMINE HOW TO SPEND THE MONEY AND POLITICS WILL DRIVE THAT MONEY TO THE MIDDLE CLASS WHERE THE VOTES ARE THE NATION CAN AFFORD TO PROVIDE IF IT WANTS WIDERANGING SERVICES AND SUBSIDIES FOR THE POOR WHAT IT CAN'T AFFORD WITHOUT MUCH HIGHER TAXES IS TO CONTINUE TO EXPAND GOVERNMENT SUBSIDIES AND SERVICES FOR THE MIDDLE CLASS AS FORMER COMMERCE SECRETARY PETE PETERSON ILLUSTRATES IN HIS NEW BOOK FACING UP GOVERNMENT SPENDS 1098 BILLION A YEAR ON FEDERAL BENEFIT PROGRAMS FOR THOSE LIVING IN POVERTY IT SPENDS A 5707 BILLION FOR THOSE WHO AREN'T AND THE AVERAGE BENEFIT GOING TO HOUSEHOLDS WITH INCOMES OVER 100000 IS LARGER THAN THAT GOING TO HOUSEHOLDS WITH INCOMES UNDER 10000 SOME ECONOMISTS SAY THERE MAY BE AN ECONOMIC ARGUMENT FOR SUBSIDIZING UNIVERSAL ACCESS TO THE INFORMATION SUPERHIGHWAY IF EVERYONE IS ON IT IT WILL HAVE ADDED VALUE FOR BUSINESSES THAT WANT TO USE IT THAT IS A VARIANT OF WHAT ATLANTIC MAGAZINE HAS DUBBED MR CLINTON'S FIELD OF DREAMS THEORY OF ECONOMIC GROWTH WHICH ARGUED THAT IF YOU BUILD BETTER PUBLIC INFRASTRUCTURE PRIVATE INVESTMENT WILL COME BUT THAT ISN'T THE ARGUMENT MR GORE IS MAKING INSTEAD HE IS PAVING THE WAY FOR A BIG NEW MIDDLECLASS ENTITLEMENT PROGRAM THAT WOULD INCREASE THE GOVERNMENT'S DRAG ON THE ECONOMY FOR DECADES TO COME SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE ALL GOING TO BE CONNECTED WSJ FEB 28 1994 9401310058 YY94 MM02 9402280077 940121 PAYING THE PRICE LIFE INSURERS NOW FIND THEY ARE HELD LIABLE FOR ABUSES BY AGENTS BLAMING A FEW BAD APPLES FAILED NEW YORK LIFE IN COSTLY CIVIL LAWSUIT TOUGHER REGULATION LIKELY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CORPUS CHRISTI TEXAS OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFEINSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF 27000 BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOTFREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE CO FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST 65000 AN ASTOUNDING 21 MILLION NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFEINSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR HERRERA ON INDIVIDUAL ROGUE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFEINSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE CO OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS 60000 PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO 40 MILLION IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK & CO'S ALLSTATE CORP AND PRUDENTIAL INSURANCE CO OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFEINSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SEN HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REP JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS ILLUSTRATING POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFEINSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED 30 LIFEINSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COS GUARDIAN LIFE INSURANCE CO OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE CO AND MUTUAL LIFE INSURANCE CO OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFEINSURANCE INDUSTRY SINCE 1905 WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FARREACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONGTERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME 65 BILLION ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAIDUP ADDITION MORTALITY CHARGE AND WAIVEOFPREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE SAYS JAMES HUNT A WOBURN MASS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFEINSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLELIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLELIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A 45YEAROLD MALE WHO BUYS A 300000 WHOLELIFE POLICY MIGHT PAY ABOUT 6800 A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN 10 YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO 55 OF THE FIRSTYEAR PREMIUMS OR 3750 ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN 1985 AT AGE 32 DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR CRUZ SPURNED MR HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR HERRERA LUCRATIVEWHOLELIFE POLICY MR HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLELIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR HERRERA MR HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR 27000 FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A 300000 WHOLELIFE INSURANCE POLICY BECAUSE MR LOPEZ WAS 70 THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN 60 MILES WEST OF CORPUS CHRISTI MR HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OILFIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR HERNANDEZ SUDDENLY CAME INTO MONEY IN 1987 WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A 331000 SETTLEMENT MR HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARDSELL CAMPAIGN AIMED AT GETTING MR HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR HERNANDEZ AGREED TO INVEST 100000 SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A 100000 LIFEINSURANCE POLICY THEN HE INCREASED HER COVERAGE TO 1 MILLION BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO 27000 A YEAR MRS HERNANDEZ NEVER GOT A BILL MR HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY 1991 MRS HERNANDEZ GOT A 27000 BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR HERRERA SOLD THE POLICY TO MRS HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL IT WAS DO OR DIE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERMLIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US MR DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS HERNANDEZ AND ORDERED IT TO PAY HER 65000 FOR ACTUAL DAMAGES 1 MILLION FOR MENTAL ANGUISH 5 MILLION FOR LEGAL FEES AND 15 MILLION IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF 26 BILLION SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFEINSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER SEE RELATED LETTER LETTERS TO THE EDITOR A MORAL RESPONSIBILITY WSJ FEB 14 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR DON'T TAR INDUSTRY OVER ROGUE' AGENTS WSJ FEB 28 1994 9402090153 9402140062 YY94 MM02 9402280040 940126 REVIEW & OUTLOOK EDITORIAL DEATH OF A STURGEON WHEN WE FIRST LOOKED INTO THE PECULIAR CASE OF THE ALABAMA STURGEON BACK IN NOVEMBER THE FISH HADN'T BEEN SPOTTED IN NEARLY A DECADE NEVERTHELESS THE US FISH AND WILDLIFE SERVICE WAS PRESSING AHEAD IN ITS QUEST FOR AN ENDANGERED SPECIES LISTING EVEN THOUGH THE US ARMY CORPS OF ENGINEERS WARNED THAT A LISTING MIGHT FORCE IT TO CURTAIL DREDGING ALONG SOME OF THE SOUTH'S BUSIEST COMMERCIAL WATERWAYS THE UNSPOTTED STURGEON WAS IN DANGER OF BECOMING THE NEXT SPOTTED OWL PROMPTING ALABAMA'S ENTIRE CONGRESSIONAL DELEGATION TO COME OUT AGAINST A LISTING A COUPLE OF WEEKS AFTER OUR EDITORIAL THE FRANTIC ANGLING OF THE GOVERNMENT'S BIOLOGISTS PAID OFF THEY CAUGHT ONE WHAT THIS DOES IS REMOVE ANY DOUBT THAT THE FISH STILL EXISTS EXULTED JAMES STEWART OF THE FISH AND WILDLIFE BUREAUCRACY WITH THE FISH NOW IN THEIR HANDS SCIENTISTS WERE WITHIN STRIKING DISTANCE OF SOLVING ANOTHER CONUNDRUM OF THE SORT THAT NOW OCCUPIES THE ENERGIES OF THE US POLITICAL SYSTEM WHETHER THE ALABAMA STURGEON REALLY REPRESENTS A RARE AND DISTINCT SPECIES FROM THE MISSISSIPPI SHOVELNOSE WHICH IS NEARLY IDENTICAL AND FROLICS IN ABUNDANCE IN WATERS FROM NORTH DAKOTA TO NEW ORLEANS OOPS ON NEW YEAR'S EVE THE PRIZED SPECIMEN WAS FOUND FLOATING BELLY UP IN ITS HOLDING POND CURIOUSLY THE PUBLIC WASN'T NOTIFIED UNTIL SOME FOUR DAYS LATER AND WHILE IT MAY BE PREMATURE TO CALL FOR AN INDEPENDENT COUNSEL OTHER SUSPICIOUS CIRCUMSTANCES ATTENDED THE FAMOUS FISH'S BRIEF LIFE IN FEDERAL CUSTODY ONE QUESTION CONCERNS HOW FWS EVEN KNEW IT HAD A NONSHOVELNOSE ON ITS HANDS THREE FRIENDLY BIOLOGISTS WERE BROUGHT IN TO MATCH THE FISH UP AGAINST THE 1991 ARTICLE IN THE BULLETIN OF THE ALABAMA MUSEUM OF NATURAL HISTORY THAT FIRST DUBBED THE HOMETOWN STURGEON AS A DIFFERENT CRITTER FROM THE SHOVELNOSE ONE OF THE SPECIALISTS SCOTT METTEE OF THE ALABAMA GEOLOGICAL SURVEY TELLS US THAT THE ACTUAL MEASUREMENTS JIBED WITH THE STANDARDS LAID OUT IN THE ARTICLE THOUGH WHETHER EYEBALL DIAMETERS AND SCALE COUNTS CAPTURE VARIATION WITHIN RATHER THAN BETWEEN SPECIES IS IN THE EYE OF THE BEHOLDER WHILE THE STURGEON LIVED ITS CAPTORS REBUFFED SEVERAL REQUESTS FOR A BLOOD SAMPLE FROM THE CORPS OF ENGINEERS THIS SEEMS STRANGE FOR JOINTLY THE CORPS AND FWS HAVE DEVELOPED A LARGE DATABASE ON THE BLOOD GENETICS OF THE MISSISSIPPI SHOVELNOSE AND A SAMPLE MIGHT HAVE SHOWN HOW CLOSELY THE BREEDS WERE RELATED WE WERE SHOCKED THAT THE SPECIMEN DIED AND WE MISSED AN OPPORTUNITY TO OBTAIN BLOOD TISSUE BRIAN PECK OF THE CORPS' MOBILE OFFICE TELLS US WHAT'S MORE THE DEAD STURGEON WAS IMMEDIATELY WRAPPED IN PAPER NOT THE JOURNAL AS FAR AS WE CAN FIND OUT AND FROZEN SPEEDING THE BREAKDOWN OF BLOOD PROTEINS AND AMINO ACIDS IT TOOK A FULL WEEK AFTER ITS SPIRIT HAD ASCENDED TO FISH HEAVEN BEFORE OUTSIDERS WERE EVEN ALLOWED TO EXAMINE THE CADAVER AND THEN ONLY FOR 15 MINUTES TIMED BY STOPWATCH AMONG THEM WAS MIKE HOWELL A LOCAL ICHTHYOLOGIST WHO LED THE RECOVERY EFFORT FOR THE ENDANGERED WATERCRESS DARTER BUT DOUBTS THAT THE STURGEON REPRESENTS A UNIQUE SPECIES HE WASN'T ALLOWED TO TAKE ANY TISSUE SAMPLES EITHER MR HOWELL WAS TOLD THAT FWS INTENDED TO PERFORM AN AUTOPSY AND THEN PRESERVE THE FISH IN FORMALDEHYDE POLLUTING THE TISSUE AND PROBABLY RULING OUT ANY CHANCE OF GENETIC ANALYSIS EVEN SO THE MYSTERY OF THE LATE STURGEON'S IDENTITY MAY STILL BE SOLVABLE THE FISH AND WILDLIFE FOLKS HAVE ACKNOWLEDGED TAKING AND FREEZING SAMPLES OF FIN TISSUE FROM THE LIVING FISH PROVIDING THERE'S ENOUGH OF THEM THESE FIN CLIPS COULD PROVIDE INSIGHT INTO CONNECTION BETWEEN THE SHOVELNOSE AND THE ALABAMA STURGEON THOUGH MR STEWART INSISTS THAT GENETICS IS NOT DISPOSITIVE IF THE FISHES LOOK DIFFERENT MR STEWART WHO OBJECTS TO OUR EARLIER CHARACTERIZATION OF HIM AS THE STURGEON'S POLITICAL CHAMPION SAYS I CONCENTRATE ON STAYING VERY BIOLOGICAL ON THIS ISSUE IN HIS VIEW IT'S THE CORPS OF ENGINEERS THAT'S MOTIVATED BY POLITICS NAMELY A DESIRE TO CURRY FAVOR WITH TUGBOAT OPERATORS AND LOCAL INDUSTRY AKA THE HUMANS FWS WASN'T ABOUT TO ANNOY THE ONLY LIVING SPECIMEN BY POKING AT IT FOR BLOOD SAMPLES OR MUSCLE TISSUE MR STEWART TELLS US RATHER HE WAS PRAYING THAT HE'D CATCH ANOTHER AND MAKE A BREEDING PAIR WE STRESS THAT THERE'S NO EVIDENCE OF FOUL PLAY HERE JUST ENDANGEREDSPECIES POLITICS AS USUAL BUT IT WOULD CERTAINLY BE MORE THAN A LITTLE IRONIC IF THE FWS IN ATTEMPTING TO PROVE THE ALABAMA STURGEON SHOULD BE PROTECTED ACCIDENTALLY KILLED THE LAST ONE AND THINGS WOULD BEGIN TO SMELL DISTINCTLY FISHY IF THE AGENCY WERE NOW TO STONEWALL ATTEMPTS TO GET TO THE BOTTOM OF THE GENETIC CONSANGUINITY BETWEEN THE COMMON SHOVELNOSE AND ITS ALABAMA COUSIN SEE RELATED LETTER LETTERS TO THE EDITOR POSTMORTEM FOR A STURGEON WSJ FEB 28 1994 9401260046 YY94 MM02 9402250179 940225 ENTERPRISE SMALL BUSINESSES OPPOSE COMPROMISE HEALTH PROPOSAL DEMOCRATIC PLAN WOULD EXEMPT SOME EMPLOYERS FROM PAYING FOR INSURANCE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S LEADING SMALLBUSINESS GROUP SAID IT OPPOSES A POSSIBLE DEMOCRATIC HEALTHCARE COMPROMISE DESIGNED TO WIN SMALLBUSINESS SUPPORT BUT THE GROUP THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS INDICATED THAT THE COMPROMISE SEEMS LESS ONEROUS FOR SMALL BUSINESSES THAN THE CLINTON ADMINISTRATION'S APPROACH SOME DEMOCRATS IN CONGRESS ARE SERIOUSLY CONSIDERING A PLAN THAT WOULD EXEMPT SMALL BUSINESSES FROM THE ADMINISTRATION'S PROPOSED REQUIREMENT THAT EMPLOYERS HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE JOHN MOTLEY THE CHIEF LOBBYIST FOR THE NFIB SAID HIS GROUP OPPOSES THE SUGGESTED COMPROMISE IN PRINCIPLE BECAUSE IT WOULD REQUIRE MIDSIZE AND LARGER COMPANIES TO PROVIDE HEALTH INSURANCE FOR THEIR WORKERS BUT FOR SMALL BUSINESSES HE ADDED THE ALTERNATIVE IDEA IS CERTAINLY A BETTER SOLUTION THAN THE CLINTON PLAN WHICH WOULD REQUIRE ALL EMPLOYERS TO PAY 80 OF THE COST OF THEIR WORKERS' BASIC HEALTHINSURANCE COSTS THE NFIB HAS BEEN AMONG THE MOST VOCAL OPPONENTS OF THE CLINTON PLAN AND OF EMPLOYER MANDATES IN GENERAL ANY SOFTENING OF ITS OPPOSITION COULD BE A MAJOR FACTOR IN THE FINAL CONGRESSIONAL OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM AT THE MOMENT HOWEVER THERE IS A STALEMATE IN CONGRESS OVER THE SHAPE OF THAT OVERHAUL A PLAN THAT ULTIMATELY EMERGES MAY DIFFER RADICALLY FROM MR CLINTON'S PROPOSAL OR THE DEMOCRATIC COMPROMISE THE COMPROMISE UNDER CONSIDERATION WOULD EXEMPT EMPLOYERS WITH 100 OR FEWER WORKERS FROM THE MANDATE UNDER THE SUGGESTED COMPROMISE THE GOVERNMENT WOULD USE TAX INCENTIVES TO HELP THOSE COMPANIES' EMPLOYEES PURCHASE HEALTH INSURANCE MIDSIZE AND LARGE BUSINESSES WOULD BE REQUIRED TO PAY FOR A PORTION OF THEIR WORKERS' HEALTHCARE COVERAGE THE CLINTON PLAN HAS BEEN CRITICIZED FOR IMPOSING TOO GREAT OF A BURDEN ON SMALL BUSINESS THOUGH IT WOULD PROVIDE SUBSIDIES TO HARDPRESSED EMPLOYERS THE NFIB AND SEVERAL OTHER SMALLBUSINESS GROUPS SAID THAT THE COMPROMISE IDEA SOUNDED INTRIGUING THOUGH THERE STILL ARE FEW DETAILS NFIB WILL NEVER SUPPORT A MANDATE ON ANY EMPLOYER LARGE OR SMALL PHILOSOPHICALLY WE'RE AGAINST IT MR MOTLEY EMPHASIZED BUT IF THIS PROPOSAL BECOMES A VIABLE BILL WE'D HAVE TO RECALCULATE OUR EFFORTS THE MANDATE WOULD BECOME LESS OF AN ISSUE THE IMPACT ON OUR MEMBERS WOULD BE LESS AND THE DEGREE OF OUR OPPOSITION WOULD BE LESS MOST OF THE FEDERATION'S 607000 MEMBERS EMPLOY FEWER THAN 100 WORKERS THE DISCUSSION OF THIS COMPROMISE SHOWS HOW EFFECTIVE THE SMALLBUSINESS ARGUMENT HAS BEEN AND THE PROBLEM IT'S CREATING FOR THE CLINTON ADMINISTRATION MR MOTLEY ADDED OTHER SMALLBUSINESS ORGANIZATIONS ALSO SEE PROMISE IN THE COMPROMISE PROPOSAL IN LOOKING FOR A COMPROMISE THAT MAKES SENSE THEY'RE GETTING CLOSER SAID JOHN GALLES EXECUTIVE VICE PRESIDENT OF NATIONAL SMALL BUSINESS UNITED THE SECONDLARGEST SMALLBUSINESS MEMBERSHIP ORGANIZATION BUT I'M NOT SURE THIS IS THE ANSWER YET HE CAUTIONED NOTING THAT CONGRESS STILL HAS TO DECIDE HOW TO FINANCE THE ALTERNATIVE PLAN AND HOW RICH ANY HEALTHBENEFITS PACKAGE WOULD BE THE SMALL BUSINESS LEGISLATIVE COUNCIL WHICH HAS BEEN GENERALLY SUPPORTIVE OF PRESIDENT CLINTON'S REFORM PROPOSAL ALSO WANTS TO PURSUE THE COMPROMISE IDEA IT HAS SIGNIFICANT POTENTIAL BECAUSE THE SIGNIFICANT MAJORITY OF SMALL BUSINESSES HAVE UNDER 100 EMPLOYEES SAID SBLC PRESIDENT JOHN SATAGAJ WE'RE NOT SAYING THROW EVERYTHING ELSE OUT BUT WE'RE INTERESTED IN EXPLORING THIS OPTION SMALLBUSINESS ORGANIZATIONS AGREED THAT IF A COMPROMISE EXEMPTING THE SMALLEST CONCERNS SEEMS LIKELY TO PASS THEY WOULD CONCENTRATE INSTEAD ON FIGHTING OTHER PROVISIONS OF THE CLINTON PLAN AMONG THEM REQUIRING BIGGER EMPLOYERS TO PROVIDE A COSTLY SET OF HEALTH BENEFITS AND FORCING COMPANIES TO JOIN HEALTHCARE PURCHASING GROUPS IT'S UNCLEAR WHETHER THE SUGGESTED COMPROMISE WOULD INCLUDE THOSE REQUIREMENTS IF IT DOES THE COMPROMISE MAY STILL RANKLE SMALL AND MIDSIZE FIRMS WITH MORE THAN 100 WORKERS THE NATIONAL ASSOCIATION OF MANUFACTURERS SAYS 60 OF ITS MEMBERS ARE SMALL COMPANIES AND 98 OF ALL MEMBERS ALREADY PROVIDE EMPLOYEES WITH HEALTH INSURANCE THE REAL FEAR IS THAT THIS WILL BECOME A GOVERNMENT ENTITLEMENT PROGRAM AND EXPAND SAID CHRISTIAN BRAUNLICH DIRECTOR OF THE ASSOCIATION'S SMALLER MANUFACTURERS COUNCIL THE US CHAMBER OF COMMERCE CURRENTLY INVOLVED IN A BITTER INTERNAL DEBATE OVER WHICH HEALTHCARE PLAN TO SUPPORT DECLINED TO COMMENT ON THE CONGRESSIONAL COMPROMISE PROPOSAL LAST WEEK THE CHAMBER'S HEALTH COMMITTEE RECOMMENDED THAT IT ENDORSE REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE MANY OF THE CHAMBER'S SMALLBUSINESS MEMBERS STRONGLY OPPOSE THAT STANCE THE CHAMBER SAYS IT PLANS TO POLL ALL MEMBERS FOR THEIR VIEWS ON SEVERAL DIFFERENT APPROACHES TO HEALTHCARE REFORM BEFORE THE BUSINESS GROUP'S FULL BOARD MAKES A DECISION 9402250178 940225 CANADIAN FIRMS' PROFITS RISE OTTAWA CANADIAN CORPORATIONS RECORDED AN 114 RISE IN THEIR OPERATING PROFITS IN THE 1993 FOURTH QUARTER FROM THE PREVIOUS THREE MONTHS STATISTICS CANADA A GOVERNMENT AGENCY SAID CORPORATE OPERATING REVENUE ROSE 19 IN THE FOURTH QUARTER FROM THE THIRD QUARTER 9402250177 940225 TANGER FACTORY SEES BIG EARNINGS INCREASE FOR FOURTH QUARTER GREENSBORO NC TANGER FACTORY OUTLET CENTERS INC AIDED BY AN EXPANDED PORTFOLIO EXPECTS TO REPORT A MORE THAN 50 INCREASE IN FOURTHQUARTER EARNINGS TO BETWEEN 40 CENTS AND 43 CENTS FROM 27 CENTS IN THE YEAREARLIER QUARTER STEVEN B TANGER EXECUTIVE VICE PRESIDENT SAID THE YEARAGO RESULTS ARE PRO FORMA AS THE COMPANY WENT PUBLIC IN JUNE 1993 THE REAL ESTATE INVESTMENT TRUST WHICH OWNS AND OPERATES 19 SHOPPING CENTERS IN 16 STATES EXPECTS TO REPORT REVENUE OF APPROXIMATELY 88 MILLION IN THE QUARTER ENDED DEC 31 1993 A 50 INCREASE FROM THE YEAREARLIER FOURTHQUARTER REVENUE OF 58 MILLION MR TANGER SAID IN AN INTERVIEW THAT FUNDS FROM OPERATIONS INCREASED TO BETWEEN 58 CENTS AND 60 CENTS A SHARE IN THE FOURTH QUARTER FROM 33 CENTS IN THE YEAREARLIER QUARTER FUNDS FROM OPERATIONS ENCOMPASS NET INCOME BEFORE EXTRAORDINARY ITEMS AND GAINS FROM THE SALE OF PROPERTIES AND ADJUSTMENTS FOR NONCASH ITEMS DEPRECIATION AND AMORTIZATION MR TANGER SAID THE GROWTH MR TANGER SAID IS ATTRIBUTABLE TO THE EXPANSION OF TANGER'S EXISTING PORTFOLIO DURING 1993 THE COMPANY EXPANDED ITS PORTFOLIO BY 54 WITH THE ADDITION OF 695000 SQUARE FEET INCLUDING FOUR NEW SHOPPING CENTERS IN LOUISIANA KANSAS OREGON AND TEXAS THE COMPANY ALSO EXPANDED EXISTING SHOPPING CENTERS IN OTHER STATES INCLUDING ALABAMA MINNESOTA AND GEORGIA MR TANGER SAID WE HAVE CONTINUED HIGH DEMAND FOR SPACE IN OUR SHOPPING CENTERS MR TANGER SAID ADDING THAT TANGER CENTERS ARE NOW OPERATING AT 98 OCCUPANCY IN 1994 TANGER PLANS TO CONTINUE ITS EXPANSION AND WILL ADD SOME 700000 SQUARE FEET OF RETAIL SPACE INCLUDING AT LEAST FOUR NEW SHOPPING CENTERS TO ITS PORTFOLIO MR TANGER SAID THE COMPANY HAS NO TENANTS IN ITS PORTFOLIO WITH A LARGER THAN 10 CONTRIBUTION TO THE COMPANY'S BASE RENT TANGER'S LARGEST TENANTS INCLUDE LIZ CLAIBORNE INC AND SARA LEE CORP 9402250176 940225 CANADA PLANS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 24 BILLION CANADIAN DOLLARS US179 BILLION OF 475 BONDS DUE MARCH 15 1996 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9402250175 940225 TO KNOW OR NOT TO KNOW WHO WILL WIN THE SKATING CONTEST BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL ISABEL TINAUNG DOESN'T WANT TO KNOW SHE'S NOT ALONE OLYMPICS VIEWERS IN THE US ARE STRUGGLING TO IGNORE THE SIXHOUR TIME DIFFERENCE HOPING THERE WILL STILL BE SOME SUSPENSE WHEN THEY WATCH THE KERRIGAN/HARDING FACEOFF DURING PRIMETIME THE FINAL BEGINS AT ABOUT 7 PM IN NORWAY AND AT 1 PM EST IN THE US AT MS TINAUNG'S OFFICE A COLLEAGUE IVAN LUPIS WAS ON A CAMPAIGN TO TELL EVERYONE THE NEWS OF WEDNESDAY'S SHORTPROGRAM CONTEST TONYA STUMBLED NANCY WON ANYTIME SOMEONE CAME UP TO ME AND SAID NANCY' OR TONYA' I COVERED MY EARS AND RAN AWAY FROM THEM MS TINAUNG SAYS MICHAEL MILLS A REPORTER FOR CONGRESSIONAL QUARTERLY IN WASHINGTON WAS DOOMED FROM THE START WEDNESDAY AFTERNOON HE GOT A COMPUTER MESSAGE ON THE TONYA/NANCY RESULTS WHICH HE MANAGED TO ERASE WITHOUT READING THEN HE REITERATED TO A COWORKER THAT HE JUST DIDN'T WANT TO KNOW FOR MOST OF THE DAY IT WORKED BUT IN THE END ANOTHER COLLEAGUE JUST COULDN'T RESIST BROADCASTING HOW AMERICA'S MOST INFAMOUS SKATERS SCORED SUZANNE CORCORAN IN WASHINGTON INVITED FRIENDS OVER ON WEDNESDAY TO WATCH THE REPLAY I WAS DETERMINED NOT TO KNOW BUT PEOPLE KEPT TELLING ME LIES LIKE NANCY KERRIGAN BROKE HER LEG' OR A 40 IS A GOOD SCORE IF YOU'RE IN GRAD SCHOOL' SAYS THE DEVELOPER I REALLY THOUGHT NANCY HAD DONE HORRIBLY AND THEN OF COURSE I WATCHED THE PERFORMANCE AT A NATIONAL ASSOCIATION OF BROADCASTERS MEETING IN WASHINGTON AN OFFICIAL OFFERED TO REVEAL THE KERRIGAN/HARDING RESULTS BEFORE HE COULD BEGIN HALF THE PEOPLE IN THE ROOM WALKED OUT AT LOUIE'S BAR IN DALLAS PEOPLE WATCHED THE REPLAY AND MOST DIDN'T KNOW THE OUTCOME SAYS OWNER LOUIE CANELAKES AN AMAZING NUMBER OF PEOPLE ARE WATCHING FIGURE SKATING HE SAYS ADDING THAT THE CONTEST IS ATTRACTING AS MANY VIEWERS IN THE BAR AS A PROFESSIONAL HOCKEY GAME LOOK AT THE AMOUNT OF VIOLENCE IN SKATING NOW HE SAYS 9402250172 940225 TEKTRONIX STANLEY UNIT IN PACT BEAVERTON ORE TEKTRONIX INC AND MAC TOOLS INC A UNIT OF STANLEY WORKS ENTERED AN AGREEMENT TO JOINTLY PRODUCE ELECTRONIC TEST TOOLS FOR THE AUTOMOTIVE REPAIR MARKET 9402250171 940225 SHOWSCAN GETS 4 CONTRACTS CULVER CITY CALIF SHOWSCAN CORP GOT FOUR CONTRACTS WITH A TOTAL VALUE OF ABOUT 6 MILLION FOR ITS MOTIONSIMULATOR THEATER ATTRACTIONS AND LICENSED FILMS 9402250170 940225 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN J MICHAEL KELLY WAS ELECTED SENIOR VICE PRESIDENT FINANCE OF THIS TELECOMMUNICATIONS COMPANY SUCCEEDING NICHOLAS L TRIVISONNO WHO EARLIER HAD BEEN NAMED EXECUTIVE VICE PRESIDENT STRATEGIC PLANNING AND GROUP PRESIDENT MR KELLEY 37 YEARS OLD WHO JOINED GTE IN MARCH 1991 HAS BEEN VICE PRESIDENTCONTROLLER OF GTE 9402250169 940225 RYKA RETAINS BANKING ADVISER NORWOOD MASS RYKA INC HIRED THE NEW YORK INVESTMENT BANKING FIRM TALLWOOD ASSOCIATES INC TO ASSIST THE COMPANY IN SECURING A NEW LENDER RYKA A MAKER OF ATHLETIC FOOTWEAR SAID THE ADVISORY ASSIGNMENT EXTENDS INITIALLY THROUGH JUNE 30 9402250168 940225 CLAYTON HOMES PLANS BUYBACK KNOXVILLE TENN CLAYTON HOMES INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS ONE MILLION OR 17 OF THE COMPANY'S COMMON SHARES THE REPURCHASE WILL BE MADE FROM TIME TO TIME IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS AS DEEMED APPROPRIATE BY THE COMPANY CLAYTON HOMES HAS 60391527 COMMON SHARES OUTSTANDING 9402250167 940225 AMERICAN ELECTRIC POWER UNIT COLUMBUS OHIO AMERICAN ELECTRIC POWER CO SAID ITS COLUMBUS SOUTHERN POWER UNIT WILL REDEEM ITS ENTIRE 99 MILLION OUTSTANDING PRINCIPAL AMOUNT OF 9 FIRSTMORTGAGE BONDS DUE 2017 THAT WEREN'T PREVIOUSLY CALLED THE REDEMPTION DATE IS MARCH 26 THE BONDS WILL BE REDEEMED AT 10585 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM MARCH 1 THROUGH MARCH 26 CITIBANK NEW YORK IS THE REDEMPTION AGENT AMERICAN ELECTRIC POWER SAID 9402250166 940225 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO CARL J SHIELDS 52 YEARS OLD WAS NAMED PRESIDENT OF RAWLINGS SPORTING GOODS A UNIT OF THIS DIVERSIFIED COMPANY SERVING THE CONSUMER TECHNICAL INDUSTRIAL AND SERVICE MARKETS MR SHIELDS SUCCEEDS JAMES R O'BRIEN 49 WHO RECENTLY LEFT THE COMPANY TO PURSUE OTHER BUSINESS OPPORTUNITIES MR SHIELDS HAD MOST RECENTLY BEEN VICE PRESIDENT OF SALES AND MARKETING AT THE UNIT AS ALREADY REPORTED FIGGIE IS CONSIDERING SELLING ALL OR A PORTION OF RAWLINGS 9402250165 940225 WHO'S NEWS RICHARD A EISNER & CO RICHARD A EISNER & CO NEW YORK KENNETH M FISCHER 46 YEARS OLD HAS BEEN NAMED A MANAGING PARTNER OF THIS ACCOUNTING FIRM MR FISCHER A FORMER PARTNER AT KPMG PEAT MARWICK JOINED EISNER & CO IN 1991 AND IN HIS NEW JOB WILL JOIN FOUNDING PARTNERS RICHARD EISNER AND THEODORE LEVINE IN RUNNING THE 50PARTNER FIRM 9402250164 940225 WHO'S NEWS CORAM HEALTHCARE CORP CORAM HEALTHCARE CORP ALPHARETTA GA JAMES M SWEENEY 51 YEARS OLD AND FORMERLY CHIEF EXECUTIVE OFFICER OF MCGAW INC A MAKER OF INTRAVENOUS SOLUTIONS WAS NAMED CHAIRMAN OF THIS NEW HOME INFUSION THERAPY COMPANY CORAM WAS CREATED THIS MONTH THROUGH THE MERGER OF T2 MEDICAL OF ATLANTA CURAFLEX HEALTH SERVICES OF ONTARIO CALIF MEDISYS INC OF EDINA MINN AND HEALTHINFUSION INC OF MIAMI 9402250163 940225 WHO'S NEWS SEVEN OAKS INTERNATIONAL INC SEVEN OAKS INTERNATIONAL INC MEMPHIS TENN FRANK A SULLIVAN 65 YEARS OLD WAS NAMED PRESIDENT OF THE RETAILCOUPON PROCESSOR HE SUCCEEDS TOMMY THOMPSON 42 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR SULLIVAN WILL RETAIN HIS POSITION OF CHIEF OPERATING OFFICER HE FORMERLY SERVED AS THE COMPANY'S CHAIRMAN AND PRESIDENT FOR NINE YEARS FROM 1971 TO 1980 9402250162 940225 NORWEGIAN JOBLESS RATE DROPS COPENHAGEN NORWAY'S FEBRUARY UNEMPLOYMENT RATE FELL TO 56 OF THE LABOR FORCE FROM 58 A YEAR EARLIER THE NORWEGIAN LABOR DIRECTORATE SAID 9402250161 940225 WHO'S NEWS GEICO CORP GEICO CORP WASHINGTON RYNTHIA MANNING ROST WAS NAMED VICE PRESIDENT OF THIS INSURANCE HOLDING COMPANY RESPONSIBLE FOR PUBLIC AFFAIRS A NEW POSITION MS ROST 38 YEARS OLD WAS ASSISTANT GENERAL COUNSEL NATIONAL PUBLIC RADIO ALSO MICHAEL F LONG 38 WAS NAMED VICE PRESIDENT OF GEICO'S PRIMARY SUBSIDIARY SUCCEEDING WILLIAM LEDMAN AS VICE PRESIDENT OF SYSTEMS AND DATA PROCESSING HE WAS AN EXECUTIVE WITH BLUE CROSS & BLUE SHIELD OF THE NATIONAL CAPITAL AREA 9402250160 940225 WHO'S NEWS POTLATCH CORP PICKS RICHARDS TO SUCCEED MADDEN IN TOP POSTS SAN FRANCISCO POTLATCH CORP SAID JOHN M RICHARDS PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE EFFECTIVE IN MAY MR RICHARDS 56 YEARS OLD WILL SUCCEED RICHARD B MADDEN WHO WILL RETIRE AFTER THE COMPANY'S ANNUAL MEETING MAY 19 MR MADDEN 64 WILL HAVE REACHED POTLATCH'S MANDATORY RETIREMENT AGE OF 65 BY THE DATE OF THE MEETING POTLATCH SAID L PENDLETON SIEGEL 51 WILL SUCCEED MR RICHARDS AS PRESIDENT AND CHIEF OPERATING OFFICER MR SIEGEL IS EXECUTIVE VICE PRESIDENT OF THE FORESTPRODUCTS COMPANY'S PULP OPERATIONS AND PLANNING THE MOVES WHICH WERE EXPECTED MARK THE END OF A LONG REIGN FOR MR MADDEN HE JOINED POTLATCH IN 1971 AS CHIEF EXECUTIVE AND PRESIDENT AND ADDED THE TITLE OF CHAIRMAN IN 1977 HE IS GENERALLY GIVEN GOOD MARKS BY ANALYSTS HAVING PROPELLED POTLATCH'S SALES TO 14 BILLION LAST YEAR FROM 360 MILLION IN 1971 HE ALSO REFOCUSED THE COMPANY ON ITS MORE PROFITABLE LESS CYCLICAL SEGMENTS TRIMMING POTLATCH'S BUSINESS LINES TO FIVE FROM 15 MR RICHARDS ISN'T EXPECTED TO UNDERTAKE ANY DRAMATIC SHIFTS IN STRATEGY MANY ANALYSTS THINK THE COMPANY IS BETTER POSITIONED THAN OTHER FOREST PRODUCTS COMPANIES PARTLY BECAUSE IT HAS FOCUSED ON ACQUIRING AND DEVELOPING TIMBERLANDS IN AREAS SUCH AS MINNESOTA AND ARKANSAS WHICH ARE LESS ENVIRONMENTALLY CONTENTIOUS THAN CALIFORNIA AND THE PACIFIC NORTHWEST 9402250159 940225 TEXAS UTILITIES UNIT TO REDEEM ON APRIL 1 FIRST MORTGAGE BONDS TEXAS UTILITIES SAID IT WILL REDEEM ITS DALLAS POWER & LIGHT CO FIRST MORTGAGE BONDS 7 3/8 SERIES DUE 2001 WITH A PRINCIPAL AMOUNT OF 30 MILLION FOR THE SPECIAL REDEMPTION PRICE OF 10087 OF PRINCIPAL PLUS ACCRUED INTEREST IT WILL REDEEM ITS DALLAS POWER & LIGHT CO FIRST MORTGAGE BONDS 7 5/8 SERIES DUE 2002 WITH A PRINCIPAL AMOUNT OF 30 MILLION FOR THE SPECIAL REDEMPTION PRICE OF 10101 OF PRINCIPAL PLUS ACCRUED INTEREST THE COMPANY WILL REDEEM ITS TEXAS ELECTRIC SERVICE CO FIRST MORTGAGE BONDS 8 7/8 SERIES DUE 2000 WITH A PRINCIPAL AMOUNT OF 25 MILLION FOR THE SPECIAL REDEMPTION PRICE OF 10074 OF PRINCIPAL THE REGULAR SEMIANNUAL INTEREST PAYMENT DUE APRIL 1 WILL BE MADE IN THE USUAL MANNER IT WILL REDEEM ITS TEXAS POWER & LIGHT CO FIRST MORTGAGE BONDS 9 1/2 SERIES DUE APRIL 1 2005 WITH A PRINCIPAL AMOUNT OF 50 MILLION FOR THE SPECIAL REDEMPTION PRICE OF 100 OF PRINCIPAL AMOUNT THE REGULAR SEMIANNUAL INTEREST PAYMENT DUE APRIL 1 WILL BE MADE IN THE USUAL MANNER IT WILL ALSO REDEEM ITS TEXAS POWER & LIGHT CO FIRST MORTGAGE BONDS 860 SERIES DUE JAN 1 2006 FOR THE SPECIAL REDEMPTION PRICE OF 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9402250158 940225 UAW THREATENS STRIKE AT GM IN OKLAHOMA OVER PRODUCTIVITY PLAN DETROIT THE UNITED AUTO WORKERS UNION THREATENED TO STRIKE GENERAL MOTORS CORP'S ASSEMBLY PLANT IN OKLAHOMA CITY AS SOON AS WEDNESDAY IN YET ANOTHER BACKLASH AGAINST THE AUTO MAKER'S PRODUCTIVITY CAMPAIGN THE UNION WHICH IS NEGOTIATING A NEW LOCAL CONTRACT WITH GM IS UPSET BECAUSE PLANT WORKERS ARE EXPERIENCING A RISING NUMBER OF REPETITIVE TRAUMA INJURIES SAID MIKE HERMES VICE PRESIDENT OF UAW LOCAL 1999 MR HERMES ATTRIBUTED THE INJURIES TO GM'S PRODUCTIVITY DRIVE WHICH HAS ELIMINATED 2000 WORKERS IN THE PLANT AND SPEEDED UP MANY JOBS THE PLANT CURRENTLY EMPLOYS 4300 THE OKLAHOMA CITY PLANT PRODUCES TWO MIDSIZED SEDANS THE OLDSMOBILE CUTLASS CIERA AND BUICK CENTURY A GM SPOKESWOMAN DECLINED TO COMMENT ON THE CONTRACT NEGOTIATIONS IN OKLAHOMA CITY BUT SAID THE COMPANY WAS HOPEFUL ABOUT REACHING A NEW CONTRACT WITHOUT A STRIKE LAST MONTH THE UAW STRUCK GM'S TRUCKASSEMBLY PLANT IN SHREVEPORT LA FOR FOUR DAYS AFTER GM INCREASED THE PLANT'S LINE SPEED THE STRIKE ENDED AFTER GM AGREED TO ADD 100 WORKERS 9402250157 940225 PHILIP MORRIS COS SAYS MARLBORO RECOUPED LOST MARKET SHARE SCOTTSDALE ARIZ PHILIP MORRIS COS SAID ITS KEY MARLBORO CIGARETTE BRAND HAS RECOUPED MOST OF THE MARKET SHARE LOST TO DISCOUNTED BRANDS IN RECENT YEARS THAT TURNAROUND SHOULD MEAN A RETURN TO PROFIT GROWTH IN 1994 FOR THE COMPANY'S US TOBACCO BUSINESS GEOFFREY C BIBLE EXECUTIVE VICE PRESIDENT OF WORLDWIDE TOBACCO TOLD SECURITIES ANALYSTS HERE YESTERDAY LAST APRIL THE COMPANY SLASHED PRICES ON MARLBORO TO HALT THE BRAND'S MARKETSHARE DETERIORATION SINCE THEN THE BRAND'S SHARE HAS INCREASED 47 POINTS TO 268 OF THE DOMESTIC MARKET MR BIBLE SAID OUR OTHER PREMIUM BRANDS HAVE ALSO SEEN STEADY SHARE GAINS SINCE LAST SUMMER'S PRICE REDUCTION RECOVERING SOME OF THE SHARE THEY LOST TO DISCOUNT HE SAID THE BASIC BRAND IS NOW THE LEADING DISCOUNT BRAND WITH A 46 SHARE AS FOR MARLBORO MR BIBLE SAID PHILIP MORRIS ESTIMATES THAT THE BRAND HAS RECAPTURED ALMOST 90 OF THE BUSINESS IT HAD LOST TO DISCOUNT OVER THE PAST THREE YEARS MUCH OF THAT GAIN HAS COME FROM SMOKERS WHO SWITCHED FROM DISCOUNT CIGARETTES BACK TO MARLBORO HE SAID WE ANTICIPATE NOW THAT MARLBORO'S PRICE IS LOWER AND IT HAS RECAPTURED SMOKERS LOST TO DISCOUNT THAT THE BRAND WILL RETURN TO ITS PREVIOUS GROWTH TREND MR BIBLE SAID AT THE CONFERENCE WHICH WAS CLOSED TO THE NEWS MEDIA THE COMPANY PROVIDED THE WALL STREET JOURNAL A TEXT OF HIS REMARKS MR BIBLE SAID THAT OVERSEAS PHILIP MORRIS BELIEVES IT CAN CONTINUE TO GROW VOLUME SHARE AND PROFITS IN ITS ESTABLISHED MARKETS WHILE SIMULTANEOUSLY INVESTING FOR LONGTERM GROWTH IN NEWER MARKETS CASH FLOW FROM INTERNATIONAL BUSINESS EXCEEDED 22 BILLION LAST YEAR HE SAID IN JAPAN WHERE THE COMPANY RECENTLY INTRODUCED A BRAND CALLED NEXT THE LOWTAR CIGARETTE HAS CAPTURED MORE THAN A 1 MARKET SHARE MR BIBLE SAID THAT LATIN AMERICA IS THE COMPANY'S FASTESTGROWING REGION IN TERMS OF PROFIT FROM TOBACCO PRODUCTS WITH A 29 SHARE THE EXECUTIVE ALSO REITERATED THAT THE ENTIRE US TOBACCO INDUSTRY WILL FOCUS ON DEFEATING ANY INCREASE IN THE FEDERAL EXCISE TAX ON CIGARETTES THAT MIGHT COME OUT OF FEDERAL HEALTHCARE REFORM 9402250156 940225 INTERNATIONAL ROYAL DUTCH/SHELL REPORTS STEEP DROP IN 4THQUARTER NET BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL ROYAL DUTCH/SHELL GROUP REPORTED A SHARP DROP IN FOURTHQUARTER NET INCOME A RESULT THAT ANALYSTS FOUND UNINSPIRING AND SOMEWHAT WORSE THAN EXPECTED THE ANGLODUTCH OIL GIANT SAID CURRENTCOST NET INCOME DRAGGED DOWN BY RESTRUCTURING CHARGES DECLINING OIL PRICES AND LOSSES FROM CHEMICALS OPERATIONS FELL 18 TO 776 MILLION 115 BILLION IN THE FOURTH QUARTER FROM 945 MILLION A YEAR EARLIER NET INCOME FOR THE YEAR ROSE 3 TO 323 BILLION FROM 312 BILLION IN 1992 THE COMPANY WAS GLOOMY ABOUT OILPRICE PROSPECTS AND SAID THE OUTLOOK FOR THE CHEMICAL SECTOR DEPENDS ON DEMAND GROWTH ANALYSTS SAID THAT WITHOUT EXTRAORDINARY ITEMS SHELL'S CURRENTCOST PROFIT SHOWED AN INCREASE THOUGH THIS FELL SHORT OF THEIR EXPECTATIONS PHILIP MORGAN AN ANALYST AT PARIBAS IN LONDON RECKONED THAT AFTER STRIPPING OUT THE EFFECT OF CURRENCY CHANGES AND EXCEPTIONAL ITEMS ROYAL DUTCH/SHELL'S FOURTHQUARTER 1993 CURRENTCOST PROFIT WOULD HAVE RISEN TO 848 MILLION FROM 781 MILLION A YEAR EARLIER BUT IT'S 100 MILLION SHORT OF WHAT I WAS LOOKING FOR HE SAID ADDING THAT HE WAS MILDLY DISAPPOINTED SHELL TOOK A CHARGE OF 147 MILLION FOR RESTRUCTURING OPERATIONS IN THE FOURTH QUARTER BRINGING THE TOTAL RESTRUCTURING CHARGES FOR THE YEAR TO 496 MILLION DESPITE THIS ROYAL DUTCH/SHELL IS HAVING DIFFICULTY GETTING ITS PROFITABILITY UP SAID FERGUS MACLEOD AN ANALYST AT NATWEST MARKETS IN EDINBURGH SCOTLAND HE SAID HE HAS SHELL SHARES ON SHORTTERM HOLD BUT LONGTERM THE COMPANY LOOKS LIKE AN UNDERPERFORMER HE CITED EXXON CORP AND BRITISH PETROLEUM CO AS BETTER BETS 9402250155 940225 THE BUSINESS OF LAW LEGAL BEAT COMPANY TAKES NOVEL APPROACH TO SEXUALHARASSMENT CHARGES BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S A COMPANY TO DO IF IT CONFRONTS SEXUALHARASSMENT ALLEGATIONS SWIFTLY AND STERNLY BUT STILL FACES DEMANDS FOR MONEY DAMAGES FROM THE ALLEGED VICTIMS ONE COMPANY KAS TEX CORP OF VERNON CALIF THAT CLAIMS IT IS IN THIS POSITION HAS PIONEERED A NEW APPROACH IT IS SUING SIX WOMEN WHO COMPLAINED ABOUT HARASSMENT AND IS SEEKING A COURT DECLARATION THAT IT IS BLAMELESS A TWIST IN THE CASE IS THAT THE WOMEN HADN'T EVEN FILED A LAWSUIT THEIR LAWYER HAD SIMPLY SENT A LETTER TO THE TEXTILE COMPANY OUTLINING THE CHARGES AND DEMANDING 282000 IN DAMAGES TO SETTLE THE ALLEGATIONS KAS TEX'S PREEMPTIVE ACTION APPEARS TO BE UNPRECEDENTED AND IS BEING CLOSELY WATCHED BY EMPLOYMENT LAWYERS KAS TEX TAKES THE POSITION IN ITS COURT FILING THAT THE COMPANY WASN'T AT FAULT FOR THE ALLEGED HARASSMENT AND THAT IT HAS STRONG PROCEDURES IN PLACE TO DETER MISTREATMENT AND TO RESPOND AGGRESSIVELY TO ANY THAT DOES OCCUR THE COMPANY WANTS THE COURT TO ENDORSE THIS VIEW AND BLOCK ANY FURTHER ACTION BY THE WOMEN THE CASE IS PARTICULARLY NOTEWORTHY BECAUSE IT REFLECTS THE FRUSTRATION OF EXECUTIVES WHO OFTEN MUST DEFEND THEMSELVES IN LENGTHY COURT CASES EVEN WHEN THEY MAINTAIN THAT THEY HAVE DONE NOTHING WRONG USUALLY DEFENDANTS ARE PERFECTLY CONTENT TO SIT BACK AND WAIT TO BE SUED SAYS DEBRA L RASKIN OF THE NEW YORK PLAINTIFFS LAW FIRM VLADECK WALDMAN ELIAS & ENGELHARD ACCUSED COMPANIES ARE NO MORE EAGER TO SPEND ATTORNEY FEES THAN ANYONE ELSE THE CONTROVERSY FIRST LURCHED TOWARD COURT LAST AUGUST WHEN SHELLY MANDELL A LOS ANGELES CIVILRIGHTS LAWYER WROTE TO KAS TEX ON BEHALF OF SIX WOMEN EMPLOYEES FIVE OF WHOM STILL WORK AT THE COMPANY THE WOMEN COMPLAINED THAT A WAREHOUSE WORKER HAD HARASSED THEM OVER A LONG PERIOD OF TIME WITH LEWD LANGUAGE AND GESTURES KAS TEX SUSPENDED THE WORKER AND HIRED THE LOS ANGELES LAW FIRM GIBSON DUNN & CRUTCHER TO INVESTIGATE ACCORDING TO ITS COMPLAINT KAS TEX CAME RELUCTANTLY TO THE CONCLUSION THAT THE ACCUSED EMPLOYEE HAD INDEED ENGAGED IN OFFENSIVE BEHAVIOR ALTHOUGH THE ACCUSATIONS CONTAINED IN THE ORIGINAL MANDELL LETTER WERE GROSSLY EXAGGERATED AND IN SOME MEASURE FALSE THE COMPANY THEN FIRED THE WAREHOUSE WORKER WHO HAS MAINTAINED THAT HE IS INNOCENT OF ANY WRONGDOING BUT THE WOMEN DIDN'T DROP THEIR DEMANDS AND KAS TEX STILL HAD THE ALLEGATIONS HANGING OVER IT WE WERE TOTALLY FRUSTRATED BECAUSE WE FEEL THAT WE ARE MORE THAN INNOCENT SAYS GUSTAV KREBS A VICE PRESIDENT OF THE COMPANY WHICH HAD A LITTLE MORE THAN 10 MILLION IN SALES LAST YEAR MR KREBS ARGUES THAT KAS TEX HAS AN OPEN DOOR POLICY AND OTHER EMPLOYMENT GUIDELINES MEANT TO PREVENT IMPROPER CONDUCT MR KREBS ALSO SAYS THAT GIBSON DUNN'S APPROACH WHILE PROFESSIONAL WAS TOO LOWKEY WE FELT IT WAS NOT BEING PURSUED AGGRESSIVELY ENOUGH BECAUSE WHAT THE HELL DO YOU DO WHEN YOU THINK YOU'RE INNOCENT KENNETH W ANDERSON A PARTNER AT GIBSON DUNN DECLINED TO COMMENT ON KAS TEX'S DECISION TO SWITCH COUNSEL KAS TEX RETAINED RAFAEL CHODOS A SANTA MONICA LITIGATOR TO FILE THE COMPLAINT FOR SOCALLED DECLARATORY RELIEF IN LOS ANGELES SUPERIOR COURT MS MANDELL THE WOMEN'S LAWYER INSISTS THAT MR CHODOS IS TRYING TO CIRCUMVENT THE WHOLE SYSTEM KAS TEX SHE SAYS IS TRYING TO ROB THE WOMEN OF THEIR REMEDIES BY AVOIDING THE TRADITIONAL COURSE TOWARD SETTLEMENT OR A TRIAL MS MANDELL A FORMER PRESIDENT OF THE LOS ANGELES CHAPTER OF THE NATIONAL ORGANIZATION FOR WOMEN AND A PARTNER IN O'DONNELL & MANDELL LOS ANGELES SAYS THAT HER OFFICE HAS GOTTEN CALLS FROM STATE AND FEDERAL AGENCIES INCLUDING THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THAT ARE WORRIED THE ACTION WILL ERODE REGULATORY SAFEGUARDS AGAINST DISCRIMINATION MR CHODOS'S COUNTERATTACK EVEN HAS DEFENSE LAWYERS SCRATCHING THEIR HEADS THE DANGER THAT I SEE IS THAT THE WOMEN WILL BE ABLE TO GET THIS MATTER IN FRONT OF A JURY SAYS NANCY L ABELL A MANAGEMENT LAWYER AT PAUL HASTINGS JANOFSKY & WALKER IN LOS ANGELES SHE SAYS A JURY MIGHT VIEW THE COMPANY'S COMPLAINT AS FURTHER HARASSMENT OF THE INDIVIDUALS ON THE THEORY THAT THEY HADN'T DECIDED TO INITIATE LITIGATION KAS TEX'S CASE IS JUST GETTING STARTED BUT ALREADY THERE ARE NEW COMPLICATIONS THE FIRED WAREHOUSE WORKER HAS SUED THE WOMEN AND THE COMPANY FOR WRONGFUL DISCHARGE AND LIBEL AMONG OTHER THINGS THE MAN'S LOS ANGELES LAWYER JAMES OLIVER FOSTER SAYS THAT HIS CLIENT HAS BECOME A SACRIFICIAL LAMB THE SIX WOMEN HAVE ASKED KAS TEX TO INDEMNIFY THEM IN THE LIBEL CASE SO FAR KAS TEX HAS DECLINED A FEDERAL JUDGE IN PHILADELPHIA HAS FOUND NO MERIT TO BRIBERY ALLEGATIONS LEVELED AGAINST AN ATTORNEY IN THE GENERAL MOTORS CORP PICKUP CASE ANDREW J LANGHAM AN ATTORNEY WITH KIRKLAND & ELLIS IN CHICAGO WHICH REPRESENTS GM WAS ACCUSED BY THE KANSAS FIRM OF MICHAUD HUTTON FISHER & ANDERSON OF OFFERING IT A BRIBE AS PREVIOUSLY REPORTED THE KANSAS FIRM SAID IN A BRIEF FILED IN FEDERAL COURT IN PHILADELPHIA THAT MR LANGHAM OFFERED TO PAY ATTORNEYS' FEES IF THE MICHAUD FIRM WOULD DROP OBJECTIONS TO A PROPOSED CLASSACTION SETTLEMENT INVOLVING THE OWNERS OF GM PICKUPS BUT FEDERAL COURT JUDGE WILLIAM H YOHN JR WHO APPROVED THE SETTLEMENT WROTE IN A SUPPLEMENTARY RULING THAT THE OFFER RECORDED AND TRANSCRIBED BY MICHAUD WASN'T AN ATTEMPT AT BRIBERY JUDGE YOHN WROTE THE COURT FINDS NO MERIT IN THESE BALD ALLEGATIONS POSNER BAN UPHELD THE FEDERAL APPEALS COURT IN NEW YORK UPHELD HARSH PENALTIES IMPOSED ON FINANCIER VICTOR POSNER AND HIS SON STEVEN POSNER FOR ALLEGED SECURITIESLAW VIOLATIONS IN DECEMBER US DISTRICT JUDGE MILTON POLLACK BANNED THE POSNERS FROM SERVING AS OFFICERS OR DIRECTORS OF ANY PUBLICLY TRADED COMPANY CALLING THE MIAMI BEACH BUSINESSMEN RECIDIVIST VIOLATORS OF THE FEDERAL SECURITIES LAWS THE APPEALS COURT REJECTED ARGUMENTS THAT THE POSNERS HADN'T RECEIVED A FAIR TRIAL AND THAT THE PENALTY EXCEEDED THE AUTHORITY OF JUDGE POLLACK A SPOKESWOMAN FOR THE POSNERS SAID A FURTHER APPEAL IS LIKELY 9402250154 940225 US ORDERS SURVEY OF CERTAIN CLAIMS IN FOREIGN LANDS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE TREASURY DEPARTMENT ANNOUNCED A MANDATORY SURVEY OF US RESIDENTS' OWNERSHIP OR CUSTODY OF SELECTED FINANCIAL CLAIMS ON FOREIGNERS OTHER THAN LONGTERM DEBT OR EQUITY SECURITIES REPORTABLE CLAIMS INCLUDE DEPOSITS WITH FOREIGN INSTITUTIONS FINANCIAL INSTRUMENTS WITH AN ORIGINAL MATURITY OF ONE YEAR OR LESS AND LOANS TO FOREIGNERS THE TREASURY SAID IN ANNOUNCING THE SURVEY IN YESTERDAY'S FEDERAL REGISTER THE TREASURY SAID THE DATA WILL BE USED TO ENSURE THE QUALITY OF INTERNATIONAL STATISTICS SAYING SUCH DATA ARE ESSENTIAL IN COMPILING THE US'S OFFICIAL BALANCEOFPAYMENTS ACCOUNT AND ARE IMPORTANT IN FORMULATING US INTERNATIONAL FINANCIAL AND MONETARY POLICIES LATE LAST YEAR THE TREASURY ANNOUNCED A SEPARATE MANDATORY SURVEY OF FOREIGN LONGTERM SECURITIES OWNED BY US RESIDENTS THE FIRST COMPREHENSIVE SURVEY OF SUCH HOLDINGS SINCE 1943 EXCLUDED FROM THE SCOPE OF THE NEW SURVEY THE TREASURY SAID ARE DIRECT INVESTMENTS EQUITY HOLDINGS DEBT SECURITIES WITH AN ORIGINAL MATURITY OF MORE THAN ONE YEAR CONTINGENT CLAIMS AND OFFBALANCE SHEET CONTRACTS INCLUDING UNSETTLED SPOT AND FORWARD FOREIGNEXCHANGE CONTRACTS OPTIONS AND WARRANTS THE TREASURY DESCRIBED THOSE WHO MUST RESPOND AS ALL UNITED STATES PERSONS WHO ON A FULLY CONSOLIDATED BASIS HOLD FOR THEIR OWN ACCOUNT AND/OR MANAGE FOR DOMESTIC CUSTOMERS THE CUSTODY OR SAFEKEEPING OF REPORTABLE FOREIGN FINANCIAL ASSETS IF THE TOTAL FACE VALUE OF SUCH ASSETS AGGREGATED OVER ALL ACCOUNTS IS 10 MILLION OR MORE ON AN ACTUAL SETTLEMENT BASIS AS OF MARCH 31 1994 IF THE REPORTABLE FOREIGN ASSETS ARE LESS THAN 10 MILLION THE TREASURY SAID THE REPORT FORM MUST STILL BE RETURNED BY THE DUE DATE WITH THE SIGNATURE AND INITIALS OF THE AUTHORIZED OFFICIAL IN THE PLACES PROVIDED THE TREASURY SAID THAT THOSE WHO RECEIVE SURVEY FORMS ARE REQUIRED TO RESPOND BY JUNE 30 PEOPLE WHO MEET THE REPORTING REQUIREMENT AND FAIL TO COMPLY MAY BE SUBJECT TO CIVIL AND/OR CRIMINAL PENALTIES RESULTS FROM THE PREVIOUSLY ANNOUNCED SURVEY ALSO ARE DUE BY JUNE 30 SURVEY REPORTS ARE TO BE SUBMITTED TO THE FEDERAL RESERVE BANK OF NEW YORK INTERNATIONAL REPORTS DIVISION 33 LIBERTY ST 4TH FLOOR NEW YORK NY 100450001 9402250153 940225 BUSINESS BRIEF GITANO GROUP INC EXPECTS TO ANNOUNCE A BUYER NEXT WEEK NEW YORK TROUBLED GITANO GROUP INC WHICH WAS PUT UP FOR SALE LAST MONTH SAID THAT IT EXPECTS TO ANNOUNCE A BUYER BY EARLY NEXT WEEK WHEN THE APPAREL MAKER IS ALSO EXPECTED TO FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION ACCORDING TO PEOPLE FAMILAR WITH THE SITUATION GITANO HAS BEEN WEIGHING BIDS THAT WERE SUBMITTED FROM APPAREL COMPANIES INCLUDING FRUIT OF THE LOOM INC VF CORP OXFORD INDUSTRIES INC AND PRIVATELY OWNED GELMART INDUSTRIES INC NONE OF THOSE COMPANIES RETURNED PHONE CALLS SEEKING COMMENT DECLINING TO IDENTIFY THE BIDDERS ROBERT GREGORY GITANO CHAIRMAN SAID WE ARE PLEASED AT THE RESPONSE THAT WE'VE GOTTEN FROM POTENTIAL BUYERS AND WE EXPECT TO MAKE AN OFFICIAL ANNOUNCEMENT EARLY NEXT WEEK INDUSTRY SOURCES HAVE SPECULATED THAT GITANO WILL BE SOLD FOR NO MORE THAN 60 MILLION WHICH IS WELL BELOW THE 130 MILLION GITANO OWES ITS CREDITORS THEREFORE GITANO WILL PROBABLY FILE FOR CHAPTER 11 PROTECTION AS SOON AS IT DECIDES ON A BUYER MR GREGORY SAID AS REPORTED GITANO PUT ITSELF UP FOR SALE AFTER ITS LARGEST CUSTOMER WALMART STORES INC SAID IT WOULD STOP BUYING FROM GITANO WHICH PLEADED GUILTY TO CUSTOMS VIOLATIONS LAST DECEMBER 9402250152 940225 NEW YORK STOCK EXCHANGE DISCIPLINES TWO MEMBER FIRMS AND 18 INDIVIDUALS BY ANN PODD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST TWO MEMBER FIRMS AND 18 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS RUSSO SECURITIES INC STATEN ISLAND NY WAS FINED 10000 FOR VIOLATING CERTAIN FINANCIAL AND REPORTING REQUIREMENTS AND FAILING TO MAINTAIN REASONABLE SUPERVISION OF CERTAIN BUSINESS ACTIVITIES THE FIRM WHICH CONSENTED TO THE EXCHANGE'S FINDINGS WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO IS REQUIRED TO EMPLOY A CHIEF FINANCIAL OFFICER WHO PASSED THE EXAMINATION FOR FINANCIAL AND OPERATIONAL PRINCIPALS UNLESS THE NYSE WAIVES THE REQUIREMENT ANTHONY T DECARLO SECURITIES INC PARLIN NJ WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT IT VIOLATED CERTAIN FINANCIAL AND REPORTING REQUIREMENTS THE EXCHANGE ALSO FINED THE FIRM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ANTHONY T DECARLO 10000 FOR CAUSING CERTAIN OF THE FIRM'S VIOLATIONS THE EXCHANGE FOUND THAT MR DECARLO FAILED TO PROVIDE APPROPRIATE SUPERVISORY CONTROL OVER THE FIRM'S BOOKS AND RECORDS MR DECARLO CONSENTED TO THE PENALTIES WITHOUT ADMITTING OR DENYING THE FINDINGS UNLESS OTHERWISE NOTED NONE OF THE FIRMS AND INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT DAN A DRUZ COLD SPRING HARBOR NY A FORMER BRANCH MANAGER WAS CENSURED AFTER A CONTESTED HEARING FOR FAILING TO REASONABLY SUPERVISE A BROKER WHO ALLEGEDLY MADE UNAUTHORIZED TRANSACTIONS THE DECISION IS ON APPEAL WITH THE SECURITIES AND EXCHANGE COMMISSION IN OTHER PROCEEDINGS SIMON ALEXANDER NEW YORK A FORMER BRANCH MANAGER WAS FINED 4000 WITHOUT ADMITTING OR DENYING ALLEGATIONS STEPHEN JOHN TIMYAN GRAND RAPIDS MICH A BROKER WAS SUSPENDED FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS RICHARD R FALBO JR NORTHBROOK ILL A FORMER BROKER WAS BARRED FOR FOUR YEARS FOR IMPROPER TRADING IN HIS OWN ACCOUNT AND FOR SALES MISCONDUCT IN TWO CUSTOMERS' ACCOUNTS MR FALBO DIDN'T ADMIT OR DENY THE ALLEGATIONS ANDREW L WEITZ NEW YORK A FORMER BROKER WAS BARRED FOR TWO YEARS FOR SALE MISCONDUCT IN THE ACCOUNTS OF THREE CUSTOMERS HE DIDN'T ADMIT OR DENY THE ALLEGATIONS ROBERT G BACHARACH DENVER A FORMER BROKER WAS BARRED FOR 18 MONTHS THE BAR WAS DEEMED SERVED FREDERICK WARREN BLISS HIGHLANDS RANCH COLO A BROKER WAS SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS JUERGENS OTTO WINKLER PLANTATION FLA A FORMER BROKER WAS BARRED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL JOSEPH KEARNS HOUSTON A FORMER BROKER WAS FOUND GUILTY OF SALESPRACTICE MISCONDUCT IN ONE CUSTOMER ACCOUNT AND BARRED FOR SIX MONTHS WILLIAM C BOXLEY PITTSBURGH A FORMER BROKER WAS BARRED FOR THREE MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS KAY MAYER ISELIN NJ A FORMER BROKER WAS SUSPENDED FOR ONE MONTH WITHOUT ADMITTING OR DENYING ALLEGATIONS NICHOLAS ROBERT BOKRON WETHERSFIELD CONN A FORMER BROKER WAS BARRED FOR THREE MONTHS AFTER A CONTESTED HEARING DAVID W NEFF WARSAW IND A FORMER EMPLOYEE AT A MEMBER FIRM WAS BARRED FOR SEVEN MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS OSBORNE JONES HINSDALE ILL A FORMER BROKER WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED FUNDS FROM CUSTOMERS WILLIAM JOSEPH DAVIS MOUNTAINSIDE NJ A FORMER BROKER WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED CUSTOMER FUNDS DOREEN A LISCIANDRELLO YONKERS NY A FORMER SECRETARY WAS PERMANENTLY BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT SHE MISAPPROPRIATED FUNDS FROM HER EMPLOYER PATRICIA KACANIC SAN MATEO CALIF A FORMER BROKER WAS BARRED UNTIL SHE COMPLIES WITH NYSE REQUESTS THAT SHE TESTIFY CONCERNING CERTAIN ACTIVITIES WHILE EMPLOYED AS A BROKER 9402250150 940225 WHO'S NEWS EASTERN ENTERPRISES EASTERN ENTERPRISES WESTON MASS LEONARD R JASKOL 57 YEARS OLD WAS NAMED A TRUSTEE OF THIS BARGE OPERATOR NATURALGAS SUPPLIER AND DISTRIBUTOR OF PARTS FOR MUNICIPAL WATER SYSTEMS EXPANDING THE BOARD TO 13 MEMBERS MR JASKOL IS CHIEF EXECUTIVE OFFICER OF LYDALL INC A MANCHESTER CONN FIBERMATERIALS CONCERN 9402250149 940225 WORSENING TRAFFIC IN BANGKOK LEAVES COMMUTERS IN A JAM MANY MOAN BUT KEEP CARS MASSTRANSIT PROGRAMS HAVE GOTTEN NOWHERE BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK SONGPOL SUKCHAN THOUGHT HE HAD FIGURED OUT A WAY TO COPE WITH BANGKOK'S LEGENDARY TRAFFIC JAMS THE 32YEAROLD FOREIGN MINISTRY OFFICIAL EARLY LAST YEAR FOUND A HOUSE NEAR HIS CHILDREN'S SCHOOLS SPARING THEM A GRUELING COMMUTE HE THOUGHT HE AND HIS WIFE WOULD BE ABLE TO COVER THE 40 KILOMETERS ABOUT 25 MILES BETWEEN HOME AND THEIR OFFICES IN A LITTLE MORE THAN AN HOUR EACH WAY WHAT MR SONGPOL DIDN'T COUNT ON WAS THAT TRAFFIC WOULD GET WORSE NOW HIS 18KILOMETER COMMUTE HAS STRETCHED TO TWO HOURS AND 45 MINUTES IN THE EVENING THOUGH HE CAN MAKE THE MORNING TRIP IN A RELATIVELY ZIPPY TWO HOURS BY LEAVING THE HOUSE AT 730 AM AFTER THE WORST OF THE MORNING CRUSH THE SOLUTION FOR THIS IS TO GET UP EARLY AND LEAVE AT 5 AM OR 530 AM AND LEAVE FOR HOME AFTER 7 PM MR SONGPOL SIGHS AS HE INCHES HIS HONDA CIVIC DOWN AN EIGHTLANE THOROUGHFARE BUT IT MEANS I CAN NEVER SEE MY KIDS OR WE CAN MOVE AND THE KIDS HAVE TO GO ON A LONG BUS RIDE TRAFFIC JAMS IN BANGKOK HAVE BEEN BAD SINCE THE 1970S BUT AFTER YEARS OF STEADILY WORSENING CONGESTION EVEN THE REMARKABLY PATIENT THAIS ARE FINALLY GETTING FED UP TRAFFIC SPEED AVERAGES JUST EIGHT KILOMETERS AN HOUR ACCORDING TO A STUDY BY THE BANGKOK GOVERNMENT COMMUTES OF TWO OR THREE HOURS EACH WAY ARE COMMON PROSPERITY IS A BIG PART OF THE PROBLEM AS MORE AND MORE THAIS JOIN THE MIDDLE CLASS CAR SALES ARE BOOMING AN AVERAGE OF AROUND 600 ADDITIONAL VEHICLES ROLLED ONTO THE STREETS OF BANGKOK EACH DAY IN LAST YEAR'S FOURTH QUARTER POLITICIANS ALSO DESERVE MUCH OF THE BLAME ALTHOUGH TRAFFIC JAMS HAVE BECOME A BIG POLITICAL ISSUE AND EVEN KING BHUMIPOL PLEADED FOR ACTION LAST YEAR THAI POLITICIANS STILL HAVEN'T COME UP WITH A CLEAR PLAN TO UNCLOG THE STREETS SEVERAL MASSTRANSIT PROJECTS AND ROADIMPROVEMENT PROGRAMS CONTINUE TO LANGUISH EVERYONE SEEMS TO HAVE A PET HORROR STORY ABOUT TRAFFIC APICHARN WONGLERT A 31YEAROLD BANK CLERK SAYS HIS MOTHER AND BROTHER ALLOWED 90 MINUTES TO DRIVE 30 KILOMETERS TO HIS WEDDING LAST YEAR EVEN SO THEY ARRIVED MORE THAN TWO HOURS LATE THE GROOM ARRIVED ON TIME ONLY BY JUMPING OUT OF A DECORATED MERCEDES AND ONTO A MOTORCYCLE TAXI EXPOSING HIS TUXEDO TO SWIRLS OF GRIT AND AUTO EXHAUST ON JULY 31 1992 A DAY THAT HAS BECOME INFAMOUS IN BANGKOK TRAFFIC LORE A RAINSTORM JUST BEFORE RUSH HOUR FLOODED THE STREETS SOME CHILDREN SPENT 10 HOURS ON SCHOOL BUSES TO GET HOME AN AMERICAN BANKER RECALLS WAITING AN HOUR JUST TO EMERGE FROM A PARKING LOT MANY DRIVERS NOW CARRY FOOD AND DRINK IN THE CAR IN CASE OF EMERGENCY TO DEAL WITH ANOTHER TYPE OF EMERGENCY ENTREPRENEURS HAVE COME UP WITH PLASTIC POUCHES THAT SERVE AS DISPOSABLE CAR TOILETS ONE OF THEM CALLED EZPEE SOME EXECUTIVES EQUIP THEIR CARS WITH MOBILE PHONES AND PERSONAL COMPUTERS SO THEY CAN WORK FROM THE CAR FOR ALL THE MOANING FEW THAIS SAY THEY WOULD CONSIDER GIVING UP THEIR CARS PUBLIC TRANSPORTATION CONSISTS OF A BATTERED FLEET OF BUSES MOSTLY WITHOUT AIR CONDITIONING AND A FEW HUNDRED NOISY LONGTAIL BOATS PLYING THE RIVER AND CANALS THAT WEAVE THROUGH THE CITY THE BUS NETWORK IS EXTENSIVE AND RELATIVELY CHEAP ABOUT 30 CENTS A RIDE BUT TAKING THE BUS WOULD ADD ABOUT AN HOUR TO MR SONGPOL'S COMMUTE EACH WAY CABINET OFFICIALS INSIST THAT A MASTER PLAN FOR BANGKOK TRAFFIC PROMISED AS EARLY AS 1975 WILL BE READY THIS YEAR MEANWHILE OFTENDELAYED PLANS TO BUILD ELEVATED RAIL SYSTEMS HAVE BECOME A JOKE ONE PROJECT LED BY HONG KONG'S HOPEWELL HOLDINGS LTD IS NICKNAMED HOPELESS THAT LEAVES MR SONGPOL STUCK IN HIS CAR BANGKOK'S BAFFLING ONEWAY ROAD SYSTEM FORCES HIM TO COVER MORE THAN TWICE THE DISTANCE A CROW WOULD FLY BETWEEN HIS OFFICE AND HOME HE BIDES HIS TIME LISTENING TO MUSIC OR TO THAILAND'S MOST POPULAR RADIO BROADCAST KOR JOR 100 THE TRAFFICINFORMATION STATION SOME OF HIS FRIENDS HAVE GIVEN UP SUBURBAN LIFE AND MOVED TO SMALL APARTMENTS CLOSER TO WORK BUT MR SONGPOL AND HIS WIFE FEEL THEY NEED TO LIVE NEAR THEIR PARENTS SO THEY DRIVE ON ON PARTICULARLY BAD NIGHTS THEY SOMETIMES PULL OVER AND DINE AT A ROADSIDE RESTAURANT BEFORE MAKING THE FINAL CRAWL HOME ON WEEKENDS THEY STAY PUT WE DON'T SEE OUR FRIENDS SAYS MR SONGPOL'S WIFE PIYACHANID IF WE GO TO A PARTY IT WOULD MEAN BEING OUT HALF THE NIGHT 9402250148 940225 ROTHSCHILD TO START UP SHANGHAI OFFICE EXPECTING HEADY DAYS IN GOLD BUSINESS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THERE'S GOLD IN CHINA AND NM ROTHSCHILD & SONS LTD WANTS A SLICE OF THE ACTION JOINING THE THRONG OF INTERNATIONAL FINANCIERS MOVING INTO CHINA THE UK MERCHANT BANK NEXT WEEK WILL INAUGURATE A REPRESENTATIVE OFFICE OF ITS HONG KONG SUBSIDIARY IN SHANGHAI THE ATTRACTION IS WHAT ROTHSCHILD'S CHAIRMAN SIR EVELYN DE ROTHSCHILD DESCRIBES AS CHINA'S TERRIFIC POTENTIAL GIVEN THE SIZE OF THE CHINESE MARKET HE PREDICTS SHANGHAI'S NASCENT STOCK EXCHANGE COULD ONE DAY RANK AMONG THE TOP THREE STOCK EXCHANGES IN THE WORLD HE SAID IN A INTERVIEW IN THIS HEADY ATMOSPHERE ROTHSCHILD SAYS SIR EVELYN IS INTERESTED IN THE GOLD BUSINESS IN NATURAL RESOURCES DEVELOPMENT IN PROJECT FINANCING AND IN SHARE ISSUES THAT MAY COME ABOUT WITH AN ASIAN NETWORK THAT INCLUDES SUBSIDIARIES IN JAPAN SINGAPORE MALAYSIA AND AUSTRALIA HE ADDS WE HOPE THERE MAY BE CROSSFERTILIZATION OPPORTUNITIES IN CHINA FOR OTHER MEMBERS OF THE ROTHSCHILD GROUP AS THE UK BANKING ARM OF THE INTERNATIONAL ROTHSCHILD FAMILY ROTHSCHILD HAS SPECIALIZED FOR MORE THAN A CENTURY IN BULLION TRADING AND THE FINANCING OF MINING VENTURES IT PLAYED A LEADING ROLE IN BRITAIN'S PRIVATIZATION STRATEGY DURING THE 1980S AND IT HAS BEEN INVOLVED IN PRIVATIZATION PROJECTS IN EASTERN EUROPE IN CHINA ONE OF ITS MOST PROBABLE CONTRIBUTIONS WILL BE ASSISTANCE IN GETTING CHINESE COMPANIES LISTED INTERNATIONALLY AS WELL AS IN SHANGHAI AND HONG KONG BUT IT ALSO AIMS TO PLAY A PIVOTAL ROLE IN ORGANIZING FOREIGN INDUSTRIAL AND FINANCIAL PARTICIPATION IN DEVELOPING CHINA'S NATURAL RESOURCES ON THE BULLION SIDE CHINA HAS DRAWN UP A LIST OF MINING COMPANIES IN WHICH IT WOULD BE WILLING TO ALLOW FOREIGN PARTICIPATION FOLLOWING A PATTERN ALREADY SET IN THE OIL INDUSTRY HOWEVER ROTHSCHILD OFFICIALS SAY THEY EXPECT CHINA TO OFFER THE MOST DIFFICULT MINING CONCESSIONS FIRST HOLDING MORE ATTRACTIVE OPPORTUNITIES IN RESERVE AS IT WAITS TO SEE HOW THE MARKET DEVELOPS ROTHSCHILD PLANS TO OFFER TAILORMADE FINANCING AND MARKETING ARRANGEMENTS FOR FOREIGN FIRMS INTERESTED IN PARTICIPATING CHINA'S RULERS COMMENTS SIR EVELYN ARE VERY INTERESTED IN OUR KNOWHOW AND IN WHAT WE CAN BRING FROM LONDON ONE OF ONLY A HANDFUL OF WESTERN INVESTMENT BANKS TO FIGURE BY NAME IN CHINESE DICTIONARIES ROTHSCHILD FIRST GOT INVOLVED WITH CHINA IN THE 19TH CENTURY WHEN IT HELPED FINANCE TRADE IN COTTON SILK AND TEA AND DEALT IN MEXICAN SILVER IN SHANGHAI ITS LINKS WITH MODERN CHINA DATE FROM 1953 WHEN IT BEGAN TRADING GOLD WITH THE BANK OF CHINA SINCE THEN THROUGH ITS HONG KONG UNIT IT HAS PLAYED AN ACTIVE ROLE IN THE SOCALLED COMMERCIALIZATION OF CHINESE COMPANIES IN 1992 ROTHSCHILD ADVISED CHINA IN ONE OF THE FIRST SALES OF SOCALLED B SHARES A CHINESE FIRM'S SHARES AVAILABLE TO FOREIGNERS IN SHANGHAI WINGSUNG STATIONERY CO MORE RECENTLY IT COLED PLACINGS OF B SHARES IN THREE OTHER COMPANIES LISTED ON THE SHANGHAI EXCHANGE AND IT HAS UNDERWRITTEN THE ISSUE OF SHARES IN ONE OF SIX CHINESE COMPANIES LISTED IN HONG KONG MAANSHAN IRON & STEEL LTD LOOKING AHEAD SIR EVELYN ACKNOWLEDGES THAT THE SPEED AT WHICH THE CHINESE MARKET WILL OPEN UP IS STILL UNCLEAR ROTHSCHILD FIRST STARTED TALKING SERIOUSLY WITH THE CHINESE IN 1985 ABOUT LISTING SHARES IN CHINESE COMPANIES HE NOTES BUT IT WASN'T UNTIL SEVEN YEARS LATER THAT A FLOTATION TOOK PLACE YOUR TIME FACTOR IS COMPLETELY DIFFERENT IN CHINA HE OBSERVES YOU HAVE TO BE VERY PATIENT THEY DON'T THINK IN TERMS OF A DEADLINE GRADUALLY HOWEVER HE PREDICTS AS THE RENMINBI BECOMES MORE CONVERTIBLE A AND B SHARES SHARES IN CHINESE COMPANIES SOLD TO CHINESE RESIDENTS ON THE ONE HAND AND SHARES SOLD TO NONRESIDENTS ON THE OTHER WILL PROBABLY MERGE WITH THAT IN VIEW ROTHSCHILD HOPES SOON TO ORGANIZE A FLOTATION ON THE SHANGHAI STOCK EXCHANGE THAT WILL EFFECTIVELY BE AN A SHARE ISSUE BUYABLE BY FOREIGNERS SIR EVELYN SAYS FURTHER AFIELD HE ADDS WE ARE DISCUSSING AT A VERY SENIOR LEVEL THE POSSIBILITY OF CHINESE LISTINGS IN LONDON WITH ONE CHINESE COMPANY ALREADY LISTED IN NEW YORK AND ANOTHER IN VANCOUVER HE NOTES CHINA IS ALSO LOOKING AT THE POSSIBILITY OF OBTAINING LISTINGS IN SINGAPORE AND WHEREVER THEY CAN ELICIT SOME CAPITAL 9402250147 940225 FINANCING BUSINESS NATIONAL BANK OF CANADA NATIONAL BANK OF CANADA MONTREAL SAID IT WILL ISSUE 125 MILLION CANADIAN DOLLARS US932 MILLION IN NONCUMULATIVE FIRST PREFERRED SHARES THE FIVE MILLION SHARES WILL BE ISSUED AT C25 EACH AND WILL YIELD 65 A YEAR A GROUP OF CANADIAN SECURITIES FIRMS WILL UNDERWRITE THE ISSUE SCHEDULED TO CLOSE MARCH 22 9402250146 940225 INDONESIAN STUDENT GETS 4YEAR JAIL TERM FOR INSULTING SUHARTO JAKARTA INDONESIA AN INDONESIAN COURT FOUND A STUDENT DISSIDENT GUILTY OF INSULTING PRESIDENT SUHARTO AND SENTENCED HIM TO FOUR YEARS IN JAIL NUKU SULEIMAN 29 YEARS OLD HAD BEEN CHARGED WITH PUTTING UP STICKERS LAST NOVEMBER THAT CALLED MR SUHARTO THE MASTERMIND OF ALL DISASTERS THE STICKERS CITED SEVERAL INCIDENTS INCLUDING THE KILLING OF PROINDEPENDENCE PROTESTERS IN EAST TIMOR IN 1991 PROSECUTORS SOUGHT THE MAXIMUM SIXYEAR SENTENCE ALLOWED BY INDONESIAN LAW ANNOUNCING THE FOURYEAR TERM THE COURT SAID MR NUKU IS YOUNG AND STILL HAS THE CHANCE TO BE CORRECTED HUNDREDS OF STUDENTS CAME TO HEAR THE VERDICT AT THE HEAVILY GUARDED COURT MR NUKU'S LAWYERS STAYED AWAY IN PROTEST BECAUSE THE COURT DIDN'T LET THEM CALL CERTAIN WITNESSES IN A WRITTEN STATEMENT APPEALING THE VERDICT MR NUKU SAID THE TRIAL WAS UNFAIR AND STATEARRANGED POLITICAL THEATER HE SAID HE STILL WOULD FIGHT AGAINST PERSONAL POWER AND CAMPAIGN TO GET A NEW PRESIDENT IN DECEMBER AUTHORITIES ARRESTED 21 OTHER STUDENTS WHO ALSO FACE TRIAL ON CHARGES OF INSULTING MR SUHARTO 9402250145 940225 INTERNATIONAL WORLD ECONOMY SOUTH KOREA LOSES GROUND IN ASIA'S RACE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWENTYFIVE YEARS AGO SOME 50000 SOUTH KOREAN TROOPS WERE AT WAR IN SOUTH VIETNAM HELPING THE US TRY TO PREVENT COMMUNISTS FROM TAKING OVER THEY LOST THAT ROUND DECISIVELY NOW SOUTH KOREA IS FIGHTING VIETNAM ONE MORE TIME THOUGH IN A DIFFERENT SENSE IT'S COMPETING AGAINST HANOI FOR FOREIGN INVESTMENT AND TECHNOLOGY TO KEEP ITS ECONOMY ROBUST BUT IT MAY LOSE THIS BATTLE TOO UNLESS SOMETHING RADICAL IS DONE THAT'S BECAUSE SOUTH KOREA HAS MADE ITSELF ABOUT THE LEAST ATTRACTIVE NATION IN ALL OF EAST ASIA FOR OVERSEAS INVESTORS WHILE VIETNAM JUST NOW IS AMONG THE MOST BEGUILING BUT THE SOUTH KOREAN PROBLEM EXTENDS FAR BEYOND VIETNAM CHINA MALAYSIA THAILAND AND INDONESIA JUST TO NAME A FEW OTHER ASIAN NATIONS ALL SEEM MORE INVITING WHEN INVESTORS BALANCE OPPORTUNITIES AGAINST OBSTACLES FOR MANY DOING SERIOUS BUSINESS IN SOUTH KOREA PROMISES MORE TROUBLE THAN IT'S WORTH ESPECIALLY WITH ASIA'S FORMER COMMUNISTS SO EAGER FOR CAPITALISTS AND THEIR CAPITAL OFFICIAL ATTITUDES IN SEOUL CAN SEEM DOWNRIGHT UNFRIENDLY FOR REASONS RANGING FROM ANCIENT HISTORY TO MODERN ECONOMICS SOUTH KOREANS KEEP SHARP LIMITS ON WHAT OUTSIDERS CAN DO ON THEIR TURF THEY DON'T WANT YET ANOTHER GROUP OF FOREIGNERS DOMINATING THEIR LIVES AS HAS HAPPENED SO OFTEN IN THE PAST THEIR PROTECTIONISM HELPED BUILD A MODERN ECONOMY ABLE TO MEET MOST DOMESTIC NEEDS AND COMPETE HEADON ELSEWHERE AGAINST THE BEST THE WORLD CAN OFFER BUT IT ALSO CREATES GREAT PROBLEMS FOR THE FUTURE WHICH NEW REFORM POLICIES MAY NOT SOLVE COMPLETELY THE MOST DANGEROUS BYPRODUCT OF KOREA'S EFFICIENT EXPORT ENGINE IS ITS MERCANTILIST ATMOSPHERE WHICH THE PUBLIC HAS BEEN INHALING FOR 40 YEARS SAYS ROBERT ZOELLICK FORMER US UNDERSECRETARY OF STATE IT LEADS TO AN INTERNATIONAL IMAGE OF KOREA THAT IS TO BE FRANK TERRIBLE THE KOREAN PUBLIC APPEARS TO BE INSULAR EVEN XENOPHOBIC AND HOSTILE THIS STATE OF MIND CAN TRANSLATE INTO COMPLEX REGULATIONS DESIGNED TO REPEL OR RESTRICT FOREIGN INVESTORS AS IF THEY WERE FOREIGN INVADERS OF OLD SO US AND OTHER BUSINESSES ARE GOING ELSEWHERE THEY NO LONGER NEED SOUTH KOREA TO HAVE AN ASIAN PRESENCE IN 1992 220 FOREIGN FIRMS WITHDREW INVESTMENTS WORTH 369 MILLION WITH 52 LEAVING SOUTH KOREA OUTRIGHT THOSE THAT DECIDED TO STAY OUT OR GO AWAY INCLUDE GENERAL MOTORS CORP GOODYEAR TIRE & RUBBER CO DUPONT CO AND ATLANTIC RICHFIELD CO'S ARCO CHEMICAL CO YOU CAN'T NAME A SINGLE AMERICAN JOINT VENTURE THERE THAT'S BEEN A SUCCESS SAYS ONE US BUSINESSMEN PERHAPS OVERSTATING THE REALITY BUT NOT THE PERCEPTION YET SEOUL NEEDS OUTSIDE INVESTORS ESPECIALLY AMERICAN AS MUCH AS EVER ONE REASON IS ITS NEED FOR ADVANCED TECHNOLOGY SOUTH KOREA WHICH NO LONGER HAS CHEAP LABOR CAN'T DEVELOP ALONE THE MODERN TECHNOLOGY NEEDED TO LEAP AHEAD US AND OTHER COMPANIES COULD SUPPLY WHAT'S NEEDED IF CONDITIONS WERE RIGHT YET SOME SOUTH KOREANS TALK WISTFULLY OF BECOMING SELFRELIANT PROBABLY IMPOSSIBLE FOR ANY NATION JOINT VENTURES ALSO CAN GIVE GREATER MARKET ACCESS OVERSEAS THAN SOUTH KOREAN COMPANIES MIGHT MANAGE ON THEIR OWN THE SSANGYONG BUSINESS GROUP SAYS SOUTH KOREA NEEDS MORE LIKE THOSE IT HAS WITH HEWLETTPACKARD CO IN WORKSTATIONS AND GENERAL ELECTRIC CO IN MEDICAL EQUIPMENT WHICH BOTH SELL AT HOME AND ABROAD BUT TO GET MORE PARTNERS THE SOUTH KOREANS MUST FREE THE HOME MARKET AND CUT RED TAPE SHARPLY THERE'S ALSO A POLITICAL REASON WHEN NOT IF UNIFICATION COMES SEOUL WILL NEED FOREIGN FRIENDS TO HELP DEFRAY COSTS AND MAINTAIN STABILITY AMERICANS WITH SOUTH KOREAN OPERATIONS COULD THEN BE EFFECTIVE LOBBYISTS IN WASHINGTON AS THEY WERE FOR GERMANY SOME SOUTH KOREANS THINK THEY MADE A STRATEGIC BLUNDER BY NOT DRAWING MORE U S COMPANIES DEEPER INTO THE LOCAL ECONOMY IT'S NOT TOO LATE THE REFORMMINDED PRESIDENT KIM YOUNG SAM HAS AN AMBITIOUS FIVEYEAR PLAN FOR OPENING SOUTH KOREA AND PLUNGING DEEPER INTO THE WORLD ECONOMY HE WINS MUCH PRAISE FOR THIS EFFORT WHICH PITS HIM AGAINST OLD ATTITUDES AND ENTRENCHED BUREAUCRATS GAINS HAVE BEEN MADE AND MORE ARE ON THE WAY DOWN THE ROAD A UNITED KOREA COULD BE AN ATTRACTIVE PLACE FOR BUSINESS WITH ITS 60 MILLION PEOPLE AND ACCESS TO NORTHERN CHINA AND THE RUSSIAN FAR EAST BUT HIS PLAN MAY NOT GO FAR ENOUGH EVEN IF IT TAKES HOLD FULLY SOUTH KOREA WOULD REMAIN LESS LIBERALIZED THAN MOST OTHER ASIAN LANDS SAYS EDWARD GRAHAM OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS HERE THUS MANY FIRMS COULD CONTINUE TO LOOK ELSEWHERE FOR THEIR ASIAN HOMES 9402250143 940225 INTERNATIONAL GERMANY SEEKS TO EXPAND PARTTIMERS LOOKING TO DUTCH MODEL FOR ANSWERS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN WHY CAN'T THE GERMANS BE MORE LIKE THE DUTCH AS THEY SEARCH FOR WAYS TO REDUCE THEIR COUNTRY'S PAINFULLY HIGH UNEMPLOYMENT NOW RUNNING AT 9 CHANCELLOR HELMUT KOHL AND OTHER GERMAN POLITICAL AND BUSINESS LEADERS HAVE BEEN TAKING AN ENVIOUS LOOK AT HOW THEIR SMALL NEIGHBOR MANAGES TO SPREAD THE WORK AROUND IF WE ONLY HAD THE SAME NUMBER OF PARTTIME JOBS AS IN THE NETHERLANDS WE WOULD HAVE TWO MILLION MORE PEOPLE WORKING MR KOHL DECLARED IN A RECENT TELEVISION INTERVIEW ONE OF SEVERAL IN WHICH HE HAS RAISED THE SUBJECT OF PARTTIME WORK TO DRIVE HOME HIS ARGUMENT MR KOHL HAS ALSO POINTED OUT THAT ROUGHLY ONE THIRD OF ALL DUTCH WORKERS ARE IN PARTTIME POSITIONS THE HIGHEST RATE IN THE INDUSTRIALIZED WORLD BY CONTRAST ONLY 16 OF GERMAN WORKERS AND 18 OF AMERICANS HAVE SUCH JOBS ENCOURAGING MORE PEOPLE TO WORK LESS MAY SEEM LIKE AN ODD WAY TO PROD AN ECONOMY OUT OF RECESSION BUT WITH MORE THAN FOUR MILLION UNEMPLOYED THE GERMAN GOVERNMENT HAS LATCHED ON TO IT THE CONCEPT HAS WON CONVERTS IN THE PRIVATE SECTOR TOO IN JANUARY VOLKSWAGEN AG IMPLEMENTED A FOURDAY WORKWEEK IN ORDER TO SAVE 30000 JOBS EVEN SO SUCH AN APPROACH TO WORKSHARING CAN BE CONTROVERSIAL BECAUSE IT TENDS TO REDUCE THE HOURS OF THOSE WITH FULLTIME JOBS FOR EXAMPLE THE IG METALL UNION REPRESENTING WORKERS IN THE ENGINEERING AND METALWORKING INDUSTRY IS THREATENING A STRIKE BECAUSE IT CAN'T AGREE WITH EMPLOYERS ON HOW TO REDESIGN THE WORKWEEK TO INCREASE THE ATTRACTIVENESS OF PARTTIME WORK THE GERMAN CABINET APPROVED MEASURES GIVING MORE SECURITY TO WORKERS WHO TRADE IN A FULLTIME JOB FOR SHORTER HOURS NOW A WORKER WHO LOSES A NEW PARTTIME JOB WITHIN THREE YEARS OF TAKING IT IS GUARANTEED THE UNEMPLOYMENT BENEFITS OF A FULLTIMER TO GET THE BALL ROLLING THE GOVERNMENT COMMITTED ITSELF TO INCREASING THE NUMBER OF PARTTIME JOBS IN THE FEDERAL ADMINISTRATION IN THE BEST TRADITION OF GERMAN CONSENSUSBUILDING BONN IS ENTREATING GERMAN EMPLOYER GROUPS AND UNIONS FOR SUPPORT A PUBLICITY BLITZ IS ALSO PLANNED TO ENCOURAGE INDIVIDUALS WHO ARE INCLINED TO WORK LESS TO TAKE THE PLUNGE AND TO URGE EMPLOYERS TO BE MORE FLEXIBLE PART OF THE PROBLEM IS THAT UNIONS HAVE TRADITIONALLY CONCENTRATED ON THE INTERESTS OF FULLTIME WORKERS AND HAVE RARELY ADDRESSED THE ISSUE OF JOB PROTECTION FOR PARTTIMERS EMPLOYERS HAVE MAINTAINED THAT PARTTIMERS ULTIMATELY COST FIRMS MORE EVEN THOUGH SOME STUDIES HAVE DEBUNKED THIS ALTHOUGH MOST EXPERTS BELIEVE THAT GERMANY WILL INEVITABLY MOVE TO MORE PARTTIME WORK SPARKING ENOUGH CHANGE TO DENT THE UNEMPLOYMENT RATE SOON SEEMS A TALL ORDER THE DUTCH FOR EXAMPLE SPENT MORE THAN A DECADE PURPOSEFULLY REVAMPING THEIR LABOR MARKET IN ADDITION JOB INSECURITY IN A RECESSION DOES NOT ENCOURAGE INDIVIDUALS TO TAKE CHANCES AND SURVEYS SHOW THAT THE UNEMPLOYED REALLY WANT FULLTIME WORK BECAUSE OF THE COUNTRY'S HIGHLY REGULATED LABOR MARKET SAYS JUERGEN SCHUPP OF BERLIN'S GERMAN INSTITUTE FOR ECONOMIC RESEARCH THERE IS A GROUP OF PEOPLE THAT WANT TO WORK MORE TO EARN OVERTIME AND THEY MIGHT SOAK UP MANY OF THE NEW JOB OFFERS AND WHILE EXECUTIVES OF GERMANY'S EMPLOYER GROUPS MAY WELCOME THE IDEA OF CHANGE ACTUAL MANAGERS ADDS DR SCHUPP STILL JUST CAN'T IMAGINE IT WILL WORK 9402250142 940225 BUSINESS BRIEF UHAUL CANCELS BID FOR PARTNERSHIPS THAT OWN 139 SELFSTORAGE FACILITIES PHOENIX CLOSELY HELD UHAUL INTERNATIONAL INC SAID IT TERMINATED ITS OFFER TO PAY 3575 MILLION FOR PARTNERSHIPS THAT OWN 139 SELFSERVICE STORAGE CENTERS ENDING A TWOMONTH TAKEOVER BATTLE THE TRUCK AND TRAILER RENTAL CONCERN'S MOVE CAME SHORTLY AFTER SHURGARD INC THE CLOSELY HELD SEATTLE CONCERN THAT MANAGES THE STORAGE CENTERS ANNOUNCED THAT HOLDERS OF A MAJORITY OF THE OUTSTANDING UNITS IN EACH OF THE 17 LIMITED PARTNERSHIPS INVOLVED HAD VOTED IN FAVOR OF CONSOLIDATING THE PARTNERSHIPS INTO A PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST UHAUL'S BURGEONING STORAGE BUSINESS INCLUDES MORE THAN 700 FACILITIES IN THE US AND CANADA IN DECEMBER ITS AMERCO UNIT MADE AN UNSOLICITED BID TO ACQUIRE THE PARTNERSHIPS MANAGED BY SHURGARD WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS CLAIMING THAT UHAUL'S BID FELL WELL SHORT OF THE PARTNERSHIPS' NET ASSET VALUE AND THEIR LIKELY VALUATION BY THE STOCK MARKET THE GENERAL PARTNERS SUBSEQUENTLY LAUNCHED THEIR COUNTEROFFER WHICH GIVES LIMITED PARTNERS THE OPTION TO RECEIVE AS MUCH AS 180 MILLION IN CASH IN ADDITION TO STOCK IN THE NEW ENTITY UHAUL SAID THAT THROUGH ITS OXFORD LIFE INSURANCE CO AFFILIATE IT WOULD USE FUNDS PREVIOUSLY ALLOCATED FOR THE SHURGARD PROPERTIES ACQUISITION TO FUND A NEW DIRECTLOAN PROGRAM TO HELP SELFSTORAGE FACILITY OWNERS REFINANCE LOANS 9402250141 940225 BUSINESS BRIEF RUST INTERNATIONAL INC UNIT COMPLETES THE PURCHASE OF KENNEDY & DONKIN LTD RUST INTERNATIONAL INC'S OVERSEAS UNIT RUST LTD COMPLETED ITS ACQUISITION OF UKBASED KENNEDY & DONKIN LTD TERMS OF THE TRANSACTION WEREN'T DISCLOSED KENNEDY & DONKIN AN ENGINEERING CONCERN ALSO HAS OFFICES IN HONG KONG AND DUBAI RUST INTERNATIONAL IS BASED IN BIRMINGHAM ALA KENNEDY & DONKIN WILL BECOME PART OF RUST INTERNATIONAL'S OVERSEAS NETWORK RUST INTERNATIONAL BASED IN BIRMINGHAM ALA IS A UNIT OF WMX TECHNOLOGIES INC 9402250140 940225 TECHNOLOGY & HEALTH MERCK'S ELATION OVER AIDS DRUG SOURS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL WEST POINT PA MONTHS OF HIGH HOPE AND EXCITEMENT HAVE SUDDENLY TURNED TO DISAPPOINTMENT FOR MERCK & CO SCIENTISTS DEVELOPING A PROMISING NEW TYPE OF DRUG AGAINST THE AIDS VIRUS IN RECENT CONVERSATIONS WITH AIDS ACTIVISTS AND RESEARCHERS THE GIANT PHARMACEUTICAL COMPANY SAID A TWOYEAR CRASH EFFORT TO DEVELOP A POWERFUL NEW AIDS DRUG WAS DEALT A SERIOUS SETBACK MERCK SAID THAT IN AN INITIAL TRIAL BEGUN LAST SUMMER THE DRUG PRODUCED DRAMATIC RESULTS REDUCING VIRUS LEVELS IN THE BLOODSTREAM LOWER THAN ANY DRUG YET TRIED FOR ABOUT SIX MONTHS BLOOD TESTS OF FOUR PATIENTS WHO CONTINUED ON THE DRUG FOUND THE VIRUS LEVELS REMAINED DOWN GENERATING MUCH OPTIMISM INSIDE MERCK BUT IN LATE JANUARY AN ESPECIALLY SENSITIVE TEST SHOWED THAT SOME TIME WITHIN THE SIX MONTHS VIRUS LEVELS HAD ACTUALLY RETURNED TO ABOUT WHERE THEY HAD BEEN BEFORE TREATMENT STARTED SCIENTISTS AT MERCK'S RESEARCH FACILITY HERE SAY THEY AREN'T CERTAIN WHY THE DRUG'S STRIKING INITIAL EFFECT WAS SHORTLIVED IN AN INTERVIEW EMILIO EMINI WHO HEADS MERCK'S AIDS RESEARCH PROGRAM SAID HE SUSPECTS HIV THE AIDS VIRUS DEVELOPED RESISTANCE MEANING IT MUTATED INTO A STRAIN ABLE TO EVADE THE DRUG THE INITIAL EFFECT OF THE DRUG WHICH WORKS BY BLOCKING AN ENZYME CALLED PROTEASE THAT IS CRUCIAL TO THE VIRUS'S ABILITY TO SPREAD FROM CELL TO CELL WAS REALLY PROFOUND SAID DR EMINI SAID HE SAID ALL FOUR PATIENTS GOT BETTER AND GAINED WEIGHT AND FOR MONTHS RESEARCHERS WERE BARELY ABLE TO DETECT THE VIRUS'S PRESENCE NO OTHER COMPOUND WE KNOW OF HAS HAD THAT EFFECT DR EMINI SAID BUT IN LATE JANUARY A SPECIAL BLOOD TEST NOT RUN OFTEN BECAUSE OF ITS COMPLEXITY SHOWED THE VIRUS HAD RETURNED TO PRETREATMENT LEVELS DR EMINI SAID THE MERCK TEAM HE SAID WAS ABSOLUTELY CHAGRINED THE DISHEARTENING NEWS POIGNANTLY SUGGESTS HOW DIFFICULT IT IS TO CREATE AN ANTIHIV DRUG DESPITE INTENSE EFFORTS BY DRUG MAKERS ABOUT EIGHT COMPANIES ARE RACING TO DEVELOP SIMILAR PROTEASEBLOCKING DRUGS THEY AREN'T AT ALL SIMILAR TO EXISTING ANTIHIV MEDICINES SUCH AS AZT MADE BY WELLCOME PLC OF BRITAIN WHICH HAVE A LIMITED BENEFIT BECAUSE THEY CAN BE TOXIC MOREOVER THE AIDS VIRUS IS KNOWN TO DEVELOP RESISTANCE TO THE AZTLIKE DRUGS WITHIN ABOUT SIX MONTHS TO A YEAR OF TREATMENT MEANING THE DRUGS SOON LOSE THEIR USEFULNESS MARGARET JOHNSTON WHO HELPS COORDINATE NEW AIDS TREATMENT EFFORTS AT THE GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH SAID IN AN INTERVIEW THAT EXPERIMENTAL PROTEASE BLOCKING DRUGS ARE THE ONLY MEDICINES WITH A CHANCE RIGHT NOW OF DOING BETTER I REALLY HAVE MY FINGERS CROSSED BECAUSE AFTER THE PROTEASE INHIBITORS I DON'T SEE MUCH IN DRUG DEVELOPMENT DR JOHNSTON SAID A FEW WEEKS AGO BEFORE MERCK RELEASED ITS NEWEST FINDINGS NONETHELESS MERCK SAID THE LATEST TEST RESULTS HAVE LED THE WHITEHOUSE STATION NJ COMPANY TO SCALE BACK PLANS TO TEST THE DRUG KNOWN AS L735524 IN DECEMBER AS A RESULT OF THE INITIAL POSITIVE FINDINGS WITH FOUR PATIENTS AND A SHORTER TRIAL IN ABOUT SIX OTHERS THE COMPANY SAID IT PLANNED TO EXPAND ITS TEST TO SEVERAL HUNDRED PATIENTS IN ABOUT FIVE MEDICAL CENTERS NOW IN CLINICAL TESTS TO BE LIMITED TO ABOUT 60 PATIENTS MERCK WILL TRY THE DRUG AT HIGHER DOSES AND IN COMBINATION WITH AN AZTLIKE DRUG WHILE ACKNOWLEDGING THAT A DRUG THAT ALLOWS THE VIRUS TO RESURRECT IN SIX MONTHS ISN'T SUCH AN ADVANCE DR EMINI SAID THAT BLOCKING PROTEASE MAY STILL BE A VIABLE STRATEGY IN FACT HE SAID THE DRUG'S INITIAL FAVORABLE RESULTS SUGGEST THAT A MORE POTENT PROTEASE BLOCKER MAY YET WORK DR EMINI BELIEVES SUCH A DRUG WILL SUCCEED HOWEVER ONLY IF IT DELIVERS A BIG ENOUGH WALLOP TO RID THE BODY ENTIRELY OF HIV BECAUSE EVEN THE TINIEST AMOUNT OF VIRUS LEFT INTACT APPEARS ABLE TO MUTATE INTO A RESISTANT STRAIN THAT CAN SWIFTLY REPLICATE AND SPREAD DR EMINI SAID MERCK OFFICIALS AREN'T NEARLY AS CRESTFALLEN AS THEY WERE IN 1991 WHEN ANOTHER PROMISING DRUG THAT BLOCKED A DIFFERENT ENZYME PRODUCED RESISTANCE WITHIN SIX WEEKS OF TREATMENT HE SAID RESISTANCE THEN WAS SO SWIFT AND DEVASTATING IT DIDN'T APPEAR AS IF ANY AMOUNT OF THAT TYPE OF DRUG COULD OVERCOME THE DIFFICULTY DRUG MAKERS HAVE BEEN TRYING TO CREATE PROTEASE BLOCKERS SINCE 1987 ONLY RECENTLY HAVE COMPANIES DESIGNED DRUGS THAT GET THROUGH THE BLOODSTREAM TO INFECTED CELLS IN LARGE ENOUGH AMOUNTS TO BE EFFECTIVE EVEN SO ONLY A FRACTION OF ANY OF THESE DRUGS GET THROUGH TO INFECTED CELLS DR EMINI SAID MERCK IS WORKING ON OTHER PROTEASE DRUGS THAT MAY YET DELIVER A MORE LETHAL DOSE TO THE VIRUS MEANWHILE SEVERAL OTHER COMPANIES SAY THEIR PROTEASE BLOCKERS MAY FARE BETTER BURROUGHS WELLCOME CO A UNIT OF WELLCOME RECENTLY BOUGHT THE RIGHTS TO DEVELOP A PROMISING PROTEASE BLOCKER CREATED BY VERTEX PHARMACEUTICALS INC A TINY COMPANY IN CAMBRIDGE MASS BURROUGHS HOPES TO BEGIN HUMAN TESTS LATER THIS YEAR OTHER CANDIDATES ARE BEING DEVELOPED BY AGOURON PHARMACEUTICALS INC MONSANTO SEARLE A UNIT OF MONSANTO CO ABBOTT LABORATORIES DUPONT MERCK A JOINT VENTURE OF MERCK AND DUPONT CO AND ROCHE HOLDING LTD 9402250139 940225 SOUTHWESTERN BELL TO ACQUIRE CELLULAR BUSINESS ASSOCIATED COMMUNICATIONS OPERATIONS WILL FETCH 552 MILLION IN STOCK BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO TEXAS SOUTHWESTERN BELL CORP AGREED TO ACQUIRE ASSOCIATED COMMUNICATIONS CORP'S DOMESTIC CELLULAR BUSINESS FOR 552 MILLION IN STOCK SIGNIFICANTLY BOOSTING THE PRESENCE OF ITS CELLULAR OPERATIONS IN UPSTATE NEW YORK DESPITE THE DOUBTS RAISED BY THE BREAKUP OF THE PROPOSED BELL ATLANTIC CORPTELECOMMUNICATIONS INC MERGER SOUTHWESTERN BELL'S DEFINITIVE AGREEMENT INDICATES THAT REGIONAL PHONE COMPANIES ARE STILL WILLING TO MAKE BIG INVESTMENTS OUTSIDE THE TRADITIONAL TELEPHONE AREA NOTABLY IN THE FASTGROWING CELLULAR FIELD REGIONAL TELEPHONE COMPANIES HAVE SEEN THEIR TRADITIONAL LOCAL PHONE SERVICE BUSINESS STAGNATE OVER THE YEARS INDEED TELEPHONE COMPANIES CONTINUE TO SNAP UP INDEPENDENT CELLULAR OPERATORS IN A BID TO CONSOLIDATE THEIR HOLDINGS IN KEY GEOGRAPHIC REGIONS SUCH CONSOLIDATIONS WERE SET OFF BY AMERICAN TELEPHONE & TELEGRAPH CO'S PENDING ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC WIRELESS IS AN IMPORTANT LANE ON THE INFORMATION HIGHWAY SAID JEFFREY HINES A PAINEWEBBER INC ANALYST NOTING THAT THE NUMBER OF CELLULAR SUBSCRIBERS GREW A REMARKABLE 40 TO ABOUT 15 MILLION IN 1993 THE BELLS REALIZE THEY'VE GOT WIRELESS COMPETITION COMING AND THEY'VE GOT TO BUILD A LARGER GEOGRAPHIC PRESENCE SOUTHWESTERN BELL'S ACQUISITION WHICH INCLUDES THE ASSUMPTION OF 128 MILLION IN ASSOCIATED DEBT WILL GIVE IT ACCESS TO FOUR NEW YORK MARKETS INCLUDING BUFFALO ROCHESTER ALBANY AND GLENS FALLS AND MAINLY POSE A CHALLENGE TO THE CELLULAR OPERATIONS OF ANOTHER BABY BELL NYNEX CORP SOUTHWESTERN BELL HAD PREVIOUSLY AGREED TO ACQUIRE CELLULAR PROPERTIES IN SYRACUSE ITHACA AND UTICA WE REALLY LIKE WIRELESS AND ARE NOT A CASUAL ACQUIRER OF CELLULAR OPERATIONS SAID JOHN STUPKA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL MOBILE SYSTEMS THE WIRELESS UNIT OF THE PHONE COMPANY HE SAID SOUTHWESTERN BELL WILL CONTINUE TO TROLL FOR POSSIBLE ACQUISITIONS TO ADD TO ITS CELLULAR OPERATIONS SHARES OF SOUTHWESTERN BELL ROSE 125 TO 3875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF ASSOCIATED COMMUNICATIONS BASED IN PITTSBURGH FELL 2125 TO 24 IN HEAVY TRADING ON THE NASDAQ STOCK MARKET ANALYSTS CONSIDER SOUTHWESTERN BELL'S CELLULAR OPERATIONS THE STRONGEST AMONG ITS BABY BELL SIBLINGS LARGELY DUE TO AN AGGRESSIVE LOWPRICING POLICY IN 1993 FOR INSTANCE THE COMPANY CHARGED ABOUT 90 FOR 250 MINUTES OF CELLULAR USE IN DALLAS AND CHICAGO COMPARED WITH AN INDUSTRY AVERAGE OF ABOUT 117 IN THE TOP 10 MARKETS SAYS HERSCHEL SHOSTECK A WIRELESS COMMUNICATIONS ANALYST SOUTHWESTERN BELL ALSO DROPPED A 3 FEE IT USED TO CHARGE TO CUSTOMERS WHO CARRIED CELLULAR PHONES OUTSIDE THEIR CALLING REGION THESE EFFORTS HAVE GENERALLY PAID OFF THE COMPANY'S PENETRATION OF THE CELLULAR MARKET IN ITS REGION IS ABOUT TWICE THE INDUSTRY AVERAGE ALTHOUGH THE COMPANY WON'T DISCLOSE ITS CELLULAR REVENUE A SPOKESMAN SAID THAT NONTELEPHONE OPERATIONS INCLUDING WIRELESS YELLOW PAGES AND CABLE HOLDINGS MADE UP ABOUT 29 OF THE 107 BILLION IN TOTAL 1993 REVENUE SOUTHWESTERN BELL SAID ASSOCIATED WILL SPIN OFF A UNIT THAT WILL OWN ASSOCIATED'S OTHER ASSETS INCLUDING ABOUT 163 MILLION SHARES HELD IN TCI ABOUT 33 MILLION SHARES IN LIBERTY MEDIA CORP AND OTHER MARKETABLE SECURITIES ITS STAKE IN PORTATEL DEL SURESTE A NONWIRELINE CELLULAR SYSTEM IN SOUTHEASTERN MEXICO AND ITS STAKE IN SPECIALIZED MOBILE RADIO THROUGHOUT MEXICO SOUTHWESTERN BELL SAID IT ALSO WILL ACQUIRE ASSOCIATED'S 357 STAKE IN A PITTSBURGH CELLULAR PROPERTY AND ITS 3 STAKE IN BAY AREA CELLULAR TELEPHONE A CELLULAR SYSTEM SERVING SAN FRANCISCO AND SAN JOSE CALIF ASSOCIATED SAID ITS SHAREHOLDERS WOULD RECEIVE FOR EACH SHARE 1450 IN SOUTHWESTERN BELL STOCK AND A PRORATED COMMON STOCK INTEREST IN THE SPUNOFF COMPANY THE TRANSACTION STILL REQUIRES SHAREHOLDER AND REGULATORY APPROVALS AND IS EXPECTED TO CLOSE BY THE END OF 1994 9402250138 940225 BUSINESS & RACE BY LEON E WYNTER USING SYMBOLS OF AFRICANAMERICAN POPULAR CULTURE IN MARKETING CAMPAIGNS HAS PROVEN TO BE PROBLEMATIC FOR ONE WHITEOWNED HAIRCARE FIRM LAST YEAR SHARK PRODUCTS WHICH MAKES THE POPULAR AFRICAN PRIDE HAIRCARE LINE SUED TO PREVENT A BLACKOWNED FIRM FROM MARKETING SIMILAR PRODUCTS NAMED AFRICAN NATURAL SHARK'S MOVE TO PROTECT ITS AFROCENTRIC TRADEMARKS INCENSED SOME BLACK COMMUNITY ACTIVISTS SHARK WITHDREW ITS SUIT LAST FALL BUT LAST MONTH REV JESSE JACKSON'S RAINBOW COALITION PERSUADED BIG B DRUGS OF BIRMINGHAM ALA TO PULL AFRICAN PRIDE FROM ITS 350 SOUTHEASTERN STORES PEOPLE WHO COME INTO OUR COMMUNITY USING OUR SYMBOLS THEN TRY TO RESTRAIN US FROM USING THEM SHOULD NOT BE ALLOWED TO SELL IN OUR COMMUNITY SAYS NEW YORK'S REV AL SHARPTON WHO PLANS TO PRESS NATIONAL CHAINS TO DROP AFRICAN PRIDE MEANWHILE THE TRADE GROUP FOR BLACKOWNED HAIRCARE FIRMS SAYS THAT WHILE 79 OF BLACK CONSUMERS WANT TO PATRONIZE BLACKOWNED FIRMS NINE OF 10 CAN'T TELL THE OWNERS' RACE BECAUSE ALL FIRMS' PRODUCT NAMES TEND TO BE BLACKORIENTED THE TRADE GROUP IS RUNNING FULLPAGE ADS IN BLACKORIENTED MAGAZINES LISTING HAIR PRODUCTS BY THE MANUFACTURER'S RACE IN SPECIAL ADS SHARK BASED IN BROOKLYN NY SAID IT MADE A MISTAKE IN FILING THE TRADEMARK INFRINGEMENT SUIT AND STRESSED THAT 76 OF ITS EMPLOYEES ARE BLACK BY USING CENSUS DATA A NEW SOFTWARE PACKAGE AIMS TO HELP SMALL COMPANIES UNDERSTAND THE ETHNIC MAKEUP OF THEIR SALES TERRITORIES USING PRO/FILER A CDROM AND SOFTWARE DISK PACKAGED BY WESSEX WINNETKA ILL ANY SMALL COMPANY CAN CREATE DEMOGRAPHICALLY DETAILED MAPS FOR LOCAL MARKETING PLANS WHILE VOLUMINOUS GOVERNMENT DATA ON RACE INCOME AND EDUCATION LEVELS HAS BEEN PUBLICLY AVAILABLE ONLY BIG FIRMS COULD AFFORD TO TAILOR IT TO THEIR NEEDS THAT DATA SUPPLIED BY FIRMS THAT REPACKAGE AND RESELL RAW CENSUS INFORMATION CAN COST 50000 THE PRO/FILER DATA ALONG WITH SIMPLE SOFTWARE SELL FOR 1500 OR LESS COMPETITORS NOTE THE WESSEX DATA ARE INEXPENSIVE BECAUSE THE COMPANY DOESN'T USE UPDATED CENSUS INFORMATION AND OTHER REFINEMENTS BUT INDEPENDENT CONSULTANTS SAY IT GIVES SOPHISTICATED ETHNIC DATA TO LESS SOPHISTICATED FIRMS AT AFFORDABLE PRICES GEORGE ATOR OF GROUP ONE RESEARCH PITTSBURGH USED PRO/FILER TO HELP A REGIONAL FURNITURE CHAIN FINE TUNE ITS DIRECT MAIL BY USING INFORMATION ABOUT CUSTOMERS' RACE AND INCOME FOR A FEW HUNDRED DOLLARS MR ATOR CAN ADVISE A SMALLBUSINESS CLIENT WHAT TO SERVE IN A NEW RESTAURANT USING A PRECISE DEMOGRAPHIC MAP THIS SERVES THE SMALLER BUSINESS PERSON WHO CAN'T AFFORD TO SPEND A LOT ON THIS KIND OF DATA MR ATOR SAYS THE PRO/FILER ALSO CAN HELP SMALLER BANKS COMPLY WITH RECENTLY TIGHTENED FEDERAL REGULATIONS ON THE RACE AND INCOME DISTRIBUTION OF CONSUMER LOANS SAYS DAVID MCCULLOCH OF TRIAC A PASADENA CALIF CONSULTING FIRM THE PROBLEM HAS BEEN THAT THE INFORMATION WAS SO EXPENSIVE AS TO HOW MANY WHITES HISPANICS OR BLACKS LIVED ON A CENSUS TRACT NOW WE CAN REFINE IT TO THE BLOCK UNDER THE NEW BANKING REGULATIONS OUR CLIENTS WILL NEED TO KNOW THEIR PENETRATION INTO MINORITY AREAS BEFORE THE REGULATORS COME IN AND TELL THEM HOW TERRIBLE THEY ARE HE ADDS MINORITIES POSTED A SMALL GAIN IN PUBLIC FORTUNE 1000 COMPANY BOARD SEATS LAST YEAR AFTER A STAGNANT DECADE ACCORDING TO DIRECTORSHIP A NEWSLETTER FOR CORPORATE DIRECTORS WITH MORE HISPANIC AND ASIANAMERICAN DIRECTORS MINORITIES OCCUPIED 404 SEATS OR ABOUT 4 UP FROM 3 AFRICANAMERICANS STILL HOLD THE BULK OF SEATS 266 ASIANAMERICANS IMPROVED TO 37 DIRECTORSHIPS AT THE END OF THE PROXY SEASON IN JUNE FROM UNDER 10 SEATS HISPANICHELD SEATS INCREASED TO 101 FROM 61 RICHARD J BELA EXECUTIVE DIRECTOR OF A HISPANIC BUSINESS GROUP SAYS THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT HAS RAISED AWARENESS OF THE HISPANIC MARKET INCREASING DEMAND FOR HISPANIC DIRECTORS THEY ARE REALIZING THEY HAVE TO PAY ATTENTION TO WHO THEIR CONSUMERS ARE AND THE NEED FOR REPRESENTATION HE SAYS WHEN WE'RE ASKED TO DO STUDIES FOR CLIENTS SEEKING DIRECTORS WE'RE GETTING MORE REQUESTS FOR MINORITIES AND WOMEN THAN IN THE PAST SAYS DIRECTORSHIP PUBLISHER PETER GARRETT ON THE OTHER HAND 518 OF THE 819 PUBLIC FORTUNE 1000 FIRMS HAD NO MINORITY BOARD MEMBERS MR GARRETT ALSO NOTED THAT BLACK ACADEMICS ARE IN HIGH DEMAND AS BOARD MEMBERS MAKING UP 28 OF BLACK DIRECTORS HOLDING FOUR OR MORE SEATS AFRICANAMERICANS HAVE ACHIEVED MUCH MORE PROMINENCE IN ACADEMIA THAN WE HAVE IN BUSINESS SAYS EARL WASHINGTON PRESIDENT OF THE EXECUTIVE LEADERSHIP COUNCIL AN ORGANIZATION OF TOPRANKED BLACKS IN US CORPORATIONS GIANT DIRECTMAIL FIRM ADVO ROLLED OUT NUESTRA GENTE OUR PEOPLE MAGAZINE TO 15 MILLION HISPANIC HOMES LAST YEAR BUT THE NAME ALREADY BELONGED TO A PROFITABLE SMALLCIRCULATION MAGAZINE IN MIAMI ITS OWNER NOT NAMED CHUTZPAH PUBLISHING FOR NOTHING CONVINCED ADVO TO BUY THE RIGHT TO THE NAME FOR A VERY HIGH FIVEFIGURE PAYMENT ACCORDING TO A CHUTZPAH OFFICIAL CHUTZPAH'S MAGAZINE RENAMED ENTRE NOSOTROS AMONG US IS A LIFESTYLE MAGAZINE FOR HISPANIC JEWS IN FLORIDA AND LATIN AMERICA BOOKSTORE WINDOWS OFTEN FEATURE SERIOUS TOMES WITH AFRICANAMERICAN THEMES DURING FEBRUARY WHICH IS BLACK HISTORY MONTH BUT WILLIAM MORROW RELEASED SNAPS A COMPENDIUM OF PUTDOWNS IN THE BLACK STREET TRADITION KNOWN AS THE DOZENS IT'S BEING TOUTED AS A MORE FUN BLACK HISTORY MONTH OFFERING THAT FLOUTS POLITICAL CORRECTNESS A TAMER SAMPLE GOES YOUR SHOES ARE SO OLD WHEN YOU STEP ON GUM YOU KNOW THE FLAVOR 9402250137 940225 INTERNATIONAL METALLGESELLSCHAFT GAINS APPROVAL FOR RESCUE EFFORTS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMAN CONGLOMERATE METALLGESELLSCHAFT AG WON SHAREHOLDER APPROVAL FOR KEY ELEMENTS OF A 34 BILLION MARK 197 BILLION RESCUE PACKAGE TO AVERT BANKRUPTCY BUT THE COMPANY'S SUPERVISORY BOARD WAS UNABLE TO PUT TO REST SHAREHOLDER CRITICISM OF ITS ROLE IN THE DEBACLE AT GERMANY'S 14THLARGEST INDUSTRIAL CONCERN RESPONDING TO CHARGES THAT THE SUPERVISORY BOARD HAD INADEQUATELY MONITORED MANAGEMENT'S ACTIVITIES SUPERVISORY BOARD CHAIRMAN RONALDO SCHMITZ BEGAN AN EXTRAORDINARY HOLDERS MEETING WITH A LENGTHY DEFENSE OF THE BODY'S ACTIONS MR SCHMITZ INSISTED THAT THE SUPERVISORY BOARD HAD FULFILLED ITS DUTIES AS BEST IT COULD GIVEN THAT IT WAS SUPPLIED WITH INFORMATION THAT WAS INCOMPLETE AND UNTRUE BY THE MANAGEMENT BOARD FORMER MANAGEMENT BOARD CHAIRMAN HEINZ SCHIMMELBUSCHAND AND HIS BOARD COLLEAGUES WERE DISMISSED IN DECEMBER FOR FAILING TO INFORM THE SUPERVISORY BOARD OF BUSINESS PROBLEMS ESPECIALLY SPECULATIVE OILTRADING CONTRACTS THAT PRODUCED LOSSES OF SOME 23 BILLION MARKS MR SCHMITZ WHO IS ALSO A MANAGEMENT BOARD MEMBER OF DEUTSCHE BANK AG SAID IT WAS SHEER NONSENSE TO SUGGEST THAT THE BANKS AND OTHER MAJOR SHAREHOLDERS REPRESENTED ON THE SUPERVISORY BOARD HAD KNOWN ABOUT THIS GAME OF ROULETTE AND PROMOTED IT AND THAT WITH GUILTY CONSCIENCES THEY THEREFORE QUICKLY APPOINTED A NEW MANAGEMENT ONCE THE TROUBLES WERE EXPOSED ALTHOUGH THE MANY OUTRAGED SMALL SHAREHOLDERS SEEMED UNCONVINCED BY MR SCHMITZ'S DEFENSE IT WAS EVIDENT FROM THE OUTSET THAT SHAREHOLDER APPROVAL OF A 14 BILLION MARK CAPITAL INCREASE AND THE FIRST OF TWO DEBTFOREQUITY SWAP OPERATIONS TO RAISE AN ADDITIONAL 13 BILLION MARKS WOULD BE GRANTED THESE MEASURES PLUS A NEW 700 MILLION MARK CREDIT LINE FROM THE COMPANY'S CREDITORS ARE THE CORNERSTONES OF THE RESCUE PACKAGE 9402250136 940225 STAKE IN TEXAS INDUSTRIES IS SOLD TORONTO COSTEEL INC SAID IT SOLD ABOUT 115 MILLION SHARES OF TEXAS INDUSTRIES INC OR ABOUT A 10 STAKE IN THE OPEN MARKET FOR 402 MILLION COSTEEL A STEEL PRODUCER STILL OWNS ABOUT 12 MILLION SHARES OF TEXAS INDUSTRIES OR 11 OF THE COMPANY'S SHARES TEXAS INDUSTRIES IS A DALLASBASED MAKER OF CONCRETE AND STEEL PRODUCTS COSTEEL SAID IT WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES AND WILL RECORD A GAIN OF MORE THAN 10 MILLION CANADIAN DOLLARS US74 MILLION FROM THE SALE A COSTEEL SPOKESMAN SAID THE COMPANY HAS NO CURRENT PLANS TO SELL MORE SHARES OF TEXAS INDUSTRIES 9402250135 940225 ECONOMY LOS ANGELES PANEL CONCLUDES CITY FACES FISCAL CRISIS URGES OVER 10 CUT IN JOBS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IN THE LATEST BLOW FOR THE NATION'S SECONDLARGEST CITY A BLUERIBBON PANEL APPOINTED BY LOS ANGELES MAYOR RICHARD RIORDAN CONCLUDED THAT THE CITY IS HEADED TOWARD A SERIOUS FINANCIAL CRISIS AND URGED MAJOR CHANGES IN MUNICIPAL MANAGEMENT A REPORT ISSUED YESTERDAY BY THE PANEL URGED REDUCTIONS OF MORE THAN 10 IN THE CITY'S 44000 EMPLOYEES AND THE CAPTURE OF FUNDS FROM LUCRATIVE BUT FINANCIALLY INDEPENDENT CITY AGENCIES WITHOUT MASSIVE REENGINEERING LOS ANGELES FACES A BLEAK ERA BOTH IN ITS MANAGEMENT AND IN ITS ECONOMY SAID THE PANEL A SPECIAL ADVISORY COMMITTEE COMPRISED OF BUSINESS LEADERS AND LAWYERS WHOSE MAKEUP REFLECTS THE BUSINESSORIENTED INTERESTS OF MAYOR RIORDAN A MULTIMILLIONAIRE LAWYER AND INVESTOR WHO WAS ELECTED LAST JULY MEMBERS OF THE SEVENMEMBER PANEL DESCRIBED LOS ANGELES'S FISCAL FUTURE IN THE BLEAKEST TERMS IN THE COMING MONTHS THE CITIZENS OF LOS ANGELES ARE GOING TO BE FACED WITH SOME VERY HARSH REALITIES LOS ANGELES TRULY IS IN FINANCIAL JEOPARDY WARNED ELI BROAD THE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SUNAMERICA INC A LOS ANGELESBASED FINANCIAL SERVICES CONCERN IT'S NOW HIGH NOON FOR THE NEAR TERM THE PANEL SAID THAT UNDER THE MOST OPTIMISTIC CONDITIONS LOS ANGELES WILL POST A 1977 MILLION DEFICIT IN THE NEXT FISCAL YEAR ENDING JUNE 30 1995 WITH SOME 661 MILLION OF THAT REFLECTING PROJECTED REVENUE LOSSES FROM THE CITY'S JAN 17 EARTHQUAKE BY LAW CALIFORNIA CITIES MUST PRODUCE A BALANCED BUDGET IMPLYING COST CUTS OR REVENUE INCREASES NEEDED FOR THE CORE CITY BUDGET OF ABOUT 4 BILLION IN THE LONGER RUN SAID THE GROUP THE CITY WILL FACE FURTHER DECLINES IN SERVICES FROM BUDGET CUTS UNLESS FUNDAMENTAL CHANGES ARE MADE IN THE CITY'S ADMINISTRATION AND OPERATIONS ROCKED BY RIOTS FIRES AND AN EARTHQUAKE IN THE RECENT PAST LOS ANGELES HAS SEEN A SHARP SLOWDOWN IN WHAT WAS ONCE SOARING GROWTH IN REVENUES FOR THE CITY REVENUES FROM MAJOR TAX SOURCES THIS FISCAL YEAR ARE EXPECTED TO DECLINE SLIGHTLY FROM YEAREARLIER LEVELS A STRIKING REVERSAL FOR A CITY WHOSE REVENUE GROWTH HAS RANGED BETWEEN 6 AND 10 ANNUALLY FOR THE LAST TWO DECADES POLITICAL ANALYSTS WERE QUICK TO WARN THAT THE PANEL FACES AN UPHILL CLIMB WITH ITS PROPOSALS WHICH AREN'T OFFICIALLY BINDING ON ANY PART OF THE CITY GOVERNMENT AMONG OTHER THINGS THE PLUTOCRATIC MAKEUP OF THE PANEL UNUSUALLY NARROW IN A CITY WITH A DIVERSE ETHNIC AND RACIAL POPULATION MAY ACT AGAINST IT HOWEVER IT APPEARS THAT MAYOR RIORDAN MAY USE THE REPORT AS AN IMPORTANT STEPPING STONE IN A STATEMENT HE CALLED THE REPORT AN IMPORTANT BLUEPRINT TO MAKE CITY GOVERNMENT FUNCTION EFFICIENTLY AND EFFECTIVELY MR RIORDAN ADDED THAT THE REAL GENIUS WILL BE TAKING ACTION TO IMPLEMENT THE RECOMMENDATIONS FROM THE OUTSIDE AT LEAST THERE APPEARS TO BE BREATHING ROOM FOR THE CITY LOS ANGELES BONDS ARE RATED DOUBLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP MOODY'S LAST YEAR DOWNGRADED THE ISSUES FROM TRIPLEA S&P HAS ADDED A NEGATIVE OUTLOOK TO ITS RATING MEANING THAT IT MAY DECLINE IN FUTURE PANEL MEMBERS SAID THEY WERE STRUCK AS THEY LOOKED CLOSELY AT THE CITY'S INNER FINANCIAL WORKINGS WHAT WE FOUND I THINK SURPRISED ALL OF US SAID MICHAEL E TENNENBAUM CHAIRMAN OF THE PANEL AND A SENIOR MANAGING PARTNER AT BEAR STEARNS & CO THE PANEL REJECTED TAX INCREASES AS SELFDEFEATING AND RECOMMENDED INSTEAD STEPS THAT IT SAID WOULD ADD BETWEEN 1 BILLION AND 115 BILLION ANNUALLY IN SAVINGS AND ADDITIONAL REVENUE TO THE CITY'S GENERAL FUND WITHIN FIVE YEARS SOME 370 MILLION OF THE TOTAL GAINS WOULD COME FROM NORMAL PROJECTED REVENUE GROWTH THE REST HOWEVER WOULD COME FROM A VARIETY OF SOURCES INCLUDING ABOUT 240 MILLION IN ANNUAL SAVINGS FROM DECLINES IN CITY PERSONNEL AND 118 MILLION IN INCREASED TRANSFERS FROM THE LOS ANGELES DEPARTMENT OF WATER AND POWER WHICH IS THE NATION'S LARGEST MUNICIPALLY OWNED UTILITY ALSO ON THE PANEL'S LIST IS A PROJECTED 60 MILLION TO 130 MILLION ANNUALLY FROM A PROPOSED LEASING OF THE LOS ANGELES INTERNATIONAL AIRPORT TO PRIVATE INTERESTS A CAMPAIGN SUGGESTION OF MAYOR RIORDAN THAT HAS ALREADY PROMPTED SUBSTANTIAL DEBATE AND THAT FACES LEGAL HURDLES ON THE OTHER SIDE OF THE LEDGER THE GROUP SAID THE CITY SHOULD INCREASE OUTLAYS FOR POLICE AND FOR BASIC CITY FACILITIES AND EQUIPMENT SUCH NEW OUTLAYS WOULD TOTAL ABOUT 849 MILLION ANNUALLY WITHIN FIVE YEARS THE PANEL SAID 9402250134 940225 SINGAPORE GROUP TO LAUNCH AIRWAY FOR BURMA IN JUNE BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE DETERMINED TO CASH IN ON THE TOURISM REVIVAL OF BURMA A PRIVATE SINGAPOREAN GROUP ANNOUNCED THAT IT WILL LAUNCH IN JUNE A CHARTER AIRLINE AIR MANDALAY TO FLY DOMESTIC AND REGIONAL ROUTES THERE IS A SEVERE SHORTAGE OF AIRCRAFT IN BURMA AND THEY CAN'T KEEP UP WITH DEMAND AT THE MOMENT SAID LEWIS TAN CHIEF EXECUTIVE OFFICER OF TECHMAT HOLDINGS PTE LTD A TRADING GROUP WITH INTERESTS IN AVIATION SHIPPING AND DEFENSE YOU HAVE TO WAIT THREE WEEKS TO GET A SEAT ON A DOMESTIC FLIGHT MR TAN TOLD A NEWS CONFERENCE THURSDAY AT THE ASIAN AEROSPACE AIRSHOW BEING HELD HERE TECHMAT INITIATED CONTACTS WITH BURMESE AUTHORITIES IN 1992 BUT ONLY RECENTLY RECEIVED AN OPERATING LICENSE FROM THE BURMESE GOVERNMENT TO RUN AN AIRLINE IT WILL BASE AIR MANDALAY IN MANDALAY BURMA'S ANCIENT CAPITAL AND BIGGEST TOURIST DESTINATION REGIONALLY THE CARRIER WILL CONNECT MANDALAY TO BANGKOK AND CHIANG MAI IN THAILAND DOMESTICALLY IT WILL FLY TO RANGOON AND TOURIST SPOTS SUCH AS PAGAN WHICH IS KNOWN FOR ITS TEMPLES AND HEHO A MOUNTAINOUS AREA ADJACENT TO THE PICTURESQUE INLE LAKE IN THE NORTH TOURISTS WILL BE THE MAIN CLIENTS OF THE AIRLINE MR TAN SAID ABOUT 70000 TOURISTS VISITED BURMA LAST YEAR AND THE GOVERNMENT IS HOPING TO ATTRACT 500000 BY THE YEAR 2000 AIR MANDALAY'S LAUNCH WILL BE WELLTIMED FOR BURMA'S OFFICIAL YEAR OF TOURISM IN 1995 MR TAN SAID BURMA HAS BEEN ANXIOUS TO ATTRACT FOREIGN INVESTMENT IN THE TOURISM SECTOR AS IT INTRODUCES MARKET REFORMS AND EMERGES FROM MANY YEARS OF SELFIMPOSED ISOLATION INTERNATIONAL ACCESS BY AIR HAS IMPROVED SIGNIFICANTLY IN THE LAST TWO YEARS BECAUSE THE GOVERNMENT HAS LIFTED TRAVEL RESTRICTIONS ON FOREIGN VISITORS NOWADAYS IT'S POSSIBLE TO FLY BETWEEN BURMA AND SINGAPORE HONG KONG AND THAILAND ON FOREIGN CARRIERS PROBLEMS FOR FLYING DOMESTICALLY HOWEVER HAVE PERSISTED DUE TO A DEARTH OF AIRCRAFT STATEOWNED MYNMAR AIRWAYS HAS BEEN ILLEQUIPPED TO DEAL WITH THE GROWING TIDE OF TOURISTS WHO HAVE DIFFICULTY SECURING A SEAT ON DOMESTIC FLIGHTS TO NORTHERN BURMA MOREOVER INDUSTRY SOURCES SAY SOME FOREIGNERS HAVE BEEN RELUCTANT TO TAKE DOMESTIC FLIGHTS AFTER HEARING ABOUT THE POOR SAFETY RECORD OF MYNMAR AIRWAYS WHICH THEY SAY HAS AN OLD FLEET INDEED TECHMAT FINANCIAL DIRECTOR M CHANG IS COUNTING ON BRISK BUSINESS HE PREDICTS AIR MANDALAY WILL REGISTER REVENUE OF BETWEEN 12 MILLION AND 15 MILLION IN ITS FIRST YEAR OF OPERATION TECHMAT PLANS TO INITIALLY FLY TWO NEW 60SEAT ATR72 TURBOPROP PLANES WHICH IT IS ACQUIRING FROM FRANCOITALIAN COMPANY AVIONS DE TRANSPORT REGIONAL THE 35 MILLION AIRCRAFT PURCHASE AGREEMENT WHICH WAS SIGNED BETWEEN THE TWO PARTIES AT THE AIRSHOW THURSDAY IS BEING FINANCED BY ITALIAN AND FRENCH BANKS BOTH SIDES DECLINED TO NAME THE BANKS THE AIRLINE WHICH WILL BE A WHOLLY OWNED SUBSIDIARY OF TECHMAT HAS MADE COMMITMENTS TO THE GOVERNMENT TO HIRE AND TRAIN LOCAL PILOTS AND CABIN CREWS 9402250133 940225 WHO'S NEWS CITY NATIONAL CORP CITY NATIONAL CORP BEVERLY HILLS CALIF MIRION P BOWERS AND ANDREA L VAN DE KAMP WERE ELECTED DIRECTORS OF THE BANK HOLDING COMPANY AND ITS PRINCIPAL SUBSIDIARY CITY NATIONAL BANK DR BOWERS 58 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE HOSPITAL OF THE GOOD SAMARITAN MS VAN DE KAMP 50 IS SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF THE WEST COAST OPERATIONS FOR SOTHEBY'S INC THEY FILL VACANCIES CREATED BY THE RETIREMENT OF STANLEY A WAINER 67 AND A JERROLD PERENCHIO 63 9402250132 940225 ICI PROFIT ROSE 78 LAST YEAR ON OPERATING BASIS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IMPERIAL CHEMICAL INDUSTRIES PLC REPORTED A SHARP RISE IN 1993 PROFIT FROM A DEPRESSED 1992 FORECASTING SUSTAINED GROWTH IN THE US AND A MODESTLY PROMISING OUTLOOK IN EUROPE THE CHEMICAL GIANT'S PRETAX PROFIT FROM CONTINUING OPERATIONS BEFORE EXCEPTIONAL ITEMS ROSE 78 TO 290 MILLION 4288 MILLION OR 204 PENCE 302 CENTS A SHARE FROM 163 MILLION OR 32 PENCE A SHARE IN 1992 REVENUE FROM CONTINUING OPERATIONS CLIMBED 12 TO 843 BILLION FROM 756 BILLION THE RESULTS FROM CONTINUING OPERATIONS EXCLUDE THOSE OF ICI'S FORMER PHARMACEUTICAL AND AGROCHEMICAL UNIT ZENECA GROUP PLC WITH WHICH ICI SPLIT IN A 13 BILLION PUBLIC OFFERING LAST YEAR INCLUDING DISCONTINUED OPERATIONS AND EXCEPTIONAL ITEMS ICI HAD PRETAX PROFIT OF 374 MILLION COMPARED WITH A LOSS OF 384 MILLION IN 1992 FOR THE FOURTH QUARTER ICI'S PRETAX PROFIT FROM CONTINUING OPERATIONS WAS 43 MILLION COMPARED WITH A YEAREARLIER LOSS OF 11 MILLION HOWEVER ANALYSTS POINTED OUT THAT ICI'S 1993 IMPROVEMENT CAME STRICTLY FROM CURRENCY BENEFITS AND COST SAVINGS AND WARNED THAT A RECOVERY IN THE CHEMICAL INDUSTRY ISN'T LIKELY IN 1994 UK BROKERAGE FIRMS JAMES CAPEL AND KLEINWORT BENSON REDUCED THEIR 1994 FORECASTS THE MARKET REMAINS EXTREMELY COMPETITIVE AND I DON'T SEE THAT CHANGING IN 1994 SAID DAVID INGLES AN ANALYST WITH JAMES CAPEL IN LONDON MR INGLES SAID ICI'S COST SAVINGS WILL SLOW IN 1994 AND ITS CURRENCY GAINS WILL EVAPORATE WITH PRICES STILL SLUGGISH HE THINKS ICI MAY NOT SHOW ROBUST RESULTS BEFORE 1997 ICI'S RESULTS THOUGH SEEN WELL BELOW HEALTHY LEVELS ARE EXPECTED TO TOP 1993 RESULTS FOR CHEMICAL PRODUCERS IN CONTINENTAL EUROPE THE IMPROVED RESULTS SUGGEST ICI IS SUCCEEDING IN SHEDDING ASSETS TO CONCENTRATE ON CORE OPERATIONS THE COMPANY POINTED OUT THAT ITS CONTROVERSIAL SPLIT WITH ZENECA GROUP PLC HAS INCREASED THE COMPANIES' COMBINED MARKET VALUE TO 137 BILLION INCLUDING THE 13 BILLION RAISED BY THE ISSUE FROM 76 BILLION A YEAR EARLIER THERE IS EVIDENCE OF GREATER FOCUS WITHIN ICI ON IMPROVING THE UNDERLYING LEVEL OF EARNINGS IN THE BUSINESSES SAID KLEINWORT BENSON ANALYST JEREMY CHANTRY ICI LEFT ITS ANNUAL DIVIDEND UNCHANGED AT 275 PENCE SIR DENYS HENDERSON ICI'S CHAIRMAN WARNED THAT THE COMPANY WANTED TO REBUILD COVER FOR THE DIVIDEND WHICH HAS EXCEEDED EARNINGS PER SHARE THE COMPANY ALSO SAID ITS DEBT AT 103 OF CAPITAL PLACES ICI IN A VERY STRONG POSITION TO CAPITALIZE ON THE OPPORTUNITIES AHEAD THOUGH SOME ANALYSTS EXPECT ACQUISITIONS PARTICULARLY IN PETROCHEMICALS THE COMPANY DIDN'T DETAIL ACQUISITION PLANS IT SAID ITS ASSET SALES WOULD CONTINUE IN 1994 PROFIT FROM ICI'S PAINTS BUSINESS DECLINED IN 1993 ON SLUMPS IN NORTH AMERICA AND EUROPE BUT THE INDUSTRIALCHEMICALS BUSINESS REVERSED A YEAREARLIER LOSS 9402250131 940225 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 40 DAYS 344 41 TO 59 DAYS 350 60 TO 89 DAYS 355 90 TO 129 DAYS 360 130 TO 149 DAYS 365 150 TO 179 DAYS 375 180 TO 239 DAYS 380 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 348 30 DAYS 359 60 DAYS 367 90 DAYS CERTIFICATES OF DEPOSIT 279 ONE MONTH 286 TWO MONTHS 294 THREE MONTHS 315 SIX MONTHS 343 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 350 ONE MONTH 365 THREE MONTHS 385 SIX MONTHS BANKERS ACCEPTANCES 340 30 DAYS 349 60 DAYS 358 90 DAYS 364 120 DAYS 372 150 DAYS 377 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/2 3 3/8 ONE MONTH 3 5/8 3 1/2 TWO MONTHS 3 3/4 3 5/8 THREE MONTHS 3 13/16 3 11/16 FOUR MONTHS 3 15/16 3 13/16 FIVE MONTHS 4 3 7/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/2 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 593 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE 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 734 60 DAYS 740 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 734 60 DAYS 743 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 540 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402250130 940225 ALUSUISSELONZA POSTS 31 DECLINE IN PROFIT FOR YEAR BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH ALUSUISSELONZA HOLDING LTD REPORTED A 31 DROP IN GROUP NET INCOME FOR 1993 BUT THE COMPANY FORECAST A MAJOR INCREASE IN EARNINGS THIS YEAR AFTER SLASHING DEPENDENCE ON PRIMARY ALUMINUM OUR EARNINGS IN 1994 SHOULD BE CONSIDERABLY BETTER SAID THEODOR M TSCHOPP CHIEF EXECUTIVE OFFICER A PROFIT BOOST WON'T COME FROM A MAJOR IMPROVEMENT IN THE MARKET SITUATION BUT THROUGH RESTRUCTURING HE ADDED IN 1993 CONSOLIDATED EARNINGS FELL TO 83 MILLION SWISS FRANCS 571 MILLION FROM A YEAREARLIER 121 MILLION FRANCS THE SAME PERIOD SAW A REDUCTION IN SALES OF 55 TO 62 BILLION FRANCS 43 BILLION FROM 65 BILLION FRANCS OPERATING PROFIT FELL 21 TO 278 MILLION FRANCS FROM 350 MILLION FRANCS AND CASH FLOW FELL 10 TO 523 MILLION FRANCS FROM 583 MILLION FRANCS IN 1993 THE SWISS CONCERN WAS HURT BY MISERABLE CONDITIONS IN THE ALUMINUM INDUSTRY EUROPEAN ALUMINUM PRODUCERS HAVE BEEN HIT HARD BY POOR ECONOMIC CONDITIONS OVERCAPACITY AND EXPORTS FROM COUNTRIES IN EASTERN EUROPE THE COMPANY HAS RESPONDED BY CLOSING SMELTERS SHARPLY CUTTING PRIMARY ALUMINUM PRODUCTION AND CONCENTRATING ON UPMARKET PRODUCTS FOR THE AUTOMOBILE MACHINERY AND CONSTRUCTION INDUSTRIES THE SMELTER CLOSINGS ALONG WITH STRICT COSTCONTAINMENT AND PRODUCTIVITYENHANCEMENT PROGRAMS WILL POSITION THE ALUMINUM DIVISION FOR SIGNIFICANTLY ENHANCED PERFORMANCE SAYS THE 1993 ANNUAL REPORT HIGHLIGHTS OF WHICH WERE RELEASED AT A NEWS CONFERENCE MR TSCHOPP SAID THE COMPANY'S STRATEGIC TARGET REMAINS A FURTHER REDUCTION IN THE COMPANY'S DEPENDENCE ON ALUMINUM AS IT STRIVES FOR AN EQUAL SALES SPLIT BETWEEN CHEMICALS PACKAGING AND ALUMINUM TAKING INTO ACCOUNT THIS YEAR'S ACQUISITION OF THE CANADIAN PACKAGING COMPANY LAWSON MARDON GROUP LTD MR TSCHOPP SAID THE BREAKDOWN IS ALUMINUM 43 PACKAGING 36 AND CHEMICALS 21 IF THE GROUP IS TO REACH IT'S TARGET OF AN EQUAL BALANCE BETWEEN ITS THREE DIVISIONS WE MUST MAKE A CHEMICALS ACQUISITION SAID PETER KALANTZIS EXECUTIVEBOARD MEMBER IN CHARGE OF CHEMICALS MEANWHILE ANALYSTS ARE OPTIMISTIC STARTING IN 1994 WE EXPECT A STRONG RECOVERY IN EARNINGS SAID SERGE LEDERMAN CHIEF ANALYST AT LOMBARD ODIER A GENEVA BANK HE EXPECTS NET TO INCREASE TO 179 MILLION FRANCS THIS YEAR AND TO 300 MILLION IN 1995 UBS GLOBAL RESEARCH FORECASTS AN IMPROVEMENT IN NET THIS YEAR OF AROUND 50 AND A 23 JUMP IN 1995 WE VIEW THE GROUP'S NEW STRATEGY AS POSITIVE SAYS A UBS REPORT 9402250129 940225 CLINTON NOMINATES DEUTCH FOR NO2 PENTAGON POST WASHINGTON PRESIDENT CLINTON NOMINATED JOHN DEUTCH CURRENTLY THE PENTAGON'S ACQUISITION CHIEF TO BE DEPUTY SECRETARY OF DEFENSE THE MOVE HAD BEEN EXPECTED IF CONFIRMED BY THE SENATE MR DEUTCH A FORMER CHEMISTRY PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WOULD SUCCEED WILLIAM PERRY WHO BECAME DEFENSE SECRETARY THIS MONTH LIKE MR PERRY THE 55YEAROLD MR DEUTCH HAS A TECHNOCRATIC BACKGROUND BUT PENTAGON INSIDERS SAY THAT WHILE MR PERRY IS SOFTSPOKEN MR DEUTCH CAN BE HEAVYHANDED AND EVEN ARROGANT MR DEUTCH'S MOST NOTABLE ACTION THUS FAR AT THE PENTAGON HAS BEEN HIS EFFORT TO FIX THE TROUBLED C17 MILITARY CARGO JET PROGRAM SAYING HE WAS PUTTING THE PLANE'S MAKER MCDONNELL DOUGLAS CORP ON HEAVY PROBATION MR DEUTCH VOWED IN DECEMBER TO TERMINATE THE PROGRAM AT 40 AIRCRAFT IF THE COMPANY FAILS TO MEET DELIVERY SCHEDULES QUALITY GOALS AND COST TARGETS MR DEUTCH MAY PUSH THE MILITARY FOR A MORE LIBERAL INTERPRETATION OF THE DON'T ASK DON'T TELL POLICY ALLOWING GAYS IN THE MILITARY WHILE PROVOST OF MIT IN 1990 MR DEUTCH URGED THE DEFENSE DEPARTMENT TO ALLOW GAY STUDENTS TO ENROLL IN THE ROTC 9402250128 940225 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED FEB 18 ACCOUNTED FOR 109 OR AN AVERAGE 324 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING ASSOCIATED WITH THE FEB 18 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 154 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 431 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 461 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 563 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 369 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 68 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF UBS SECURITIES AND SUSQUEHANNA EXECUTED ALL OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9402250127 940225 PARAMETRIC TECHNOLOGY CORP WALTHAM MASS PARAMETRIC TECHNOLOGY CORP SAID IT RECEIVED ORDERS FOR MORE THAN 1 MILLION FROM POLAROID CORP CAMBRIDGE MASS THE ORDERS INCLUDE SOFTWARE TRAINING AND CONSULTING SERVICES ALL SOFTWARE WILL BE SHIPPED TO POLAROID DURING PARAMETRIC'S QUARTER ENDING APRIL 2 9402250126 940225 CALIFORNIA FEDERAL EPA CLASH AGAIN THIS TIME ROW IS OVER SLUDGE CONTROL BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA AND THE US ENVIRONMENTAL PROTECTION AGENCY ARE SQUARING OFF AGAIN THIS TIME OVER SEWAGE SLUDGE THE STATE'S EPA YESTERDAY TOLD THE FEDERAL EPA THAT IT WILL REFUSE TO ADMINISTER A FEDERAL SLUDGE CONTROL DISPOSAL AND MONITORING PROGRAM THE STATE WON'T GO ALONG WITH THE PROGRAM'S REGULATIONS EITHER THE SLUDGE PROGRAM WAS MANDATED BY CONGRESS AS PART OF THE ORIGINAL CLEAN WATER ACT PASSED IN 1972 THE EPA ONLY RECENTLY GOT AROUND TO WORKING OUT REGULATIONS FOR THE SLUDGE PROGRAM THE AGENCY HAS BEEN ASKING STATES TO RUN IT AND ABIDE BY ITS STANDARDS PRINCIPALLY BECAUSE THE EPA DOESN'T HAVE THE FUNDS TO RUN THE PROGRAM ITSELF THE FEDERAL AGENCY CAN'T FORCE STATES TO COMPLY BUT CAN FINE INDIVIDUAL VIOLATORS OF THE PROGRAM'S SLUDGE STANDARDS JAMES STROCK HEAD OF CALIFORNIA'S EPA SAID THE STATE ALREADY HAS PLENTY OF SEWAGESLUDGE PROGRAMS SOME OF WHICH ARE TOUGHER THAN REQUIRED BY FEDERAL RULES HE SAID THE STATE WHICH IS FACING YET ANOTHER YAWNING BUDGET DEFICIT CAN'T AFFORD TO IMPLEMENT THE FEDERAL PROGRAM EITHER PARTICULARLY BECAUSE THE FEDERAL GOVERNMENT HASN'T PROVIDED ANY MONEY TO HELP IT DO SO EVEN IN THE BEST OF ECONOMIC CLIMATES IT WILL NO LONGER BE AN OPTION FOR THE STATE TO COMPLETELY ABSORB IMPLEMENTATION COSTS OF NEW FEDERAL PROGRAMS MR STROCK SAID IN A LETTER TO FELICIA MARCUS HEAD OF THE EPA'S REGIONAL OFFICE IN SAN FRANCISCO MS MARCUS COULDN'T BE REACHED FOR COMMENT BUT THE FEDERAL EPA WASN'T HAPPY WITH CALIFORNIA'S STANCE IN RECENT MONTHS THE STATE AND THE FEDERAL AGENCY HAVE INCREASINGLY BEEN AT ODDS OVER RESOURCE POLICIES FOR EXAMPLE THE STATE REFUSED TO GO ALONG WITH CERTAIN FEDERAL SMOG STANDARDS PROMPTING THE FEDERAL GOVERNMENT TO THREATEN TO CUT OFF FEDERAL HIGHWAY FUNDING THE FEDERAL GOVERNMENT RELENTED AFTER THE EPA AND THE STATE REACHED A COMPROMISE CALIFORNIA ALSO RECENTLY REJECTED EPA WATERQUALITY STANDARDS FOR THE TROUBLED SAN FRANCISCO BAY DELTA FROM WHERE 20 MILLION PEOPLE GET DRINKING WATER DELTA WATER FREQUENTLY VIOLATES FEDERAL DRINKINGWATER STANDARDS LARGELY BECAUSE OF HEAVY AND ENVIRONMENTALLY DAMAGING PUMPING TO PROVIDE IRRIGATION WATER FOR FARMS THE CONFLICT PARTLY REFLECTS POLITICAL AND PHILOSOPHICAL DIFFERENCES BETWEEN CALIFORNIA'S REPUBLICAN GOVERNOR PETE WILSON AND FEDERAL POLICYMAKERS AND BUREAUCRATS WHOM GOV WILSON BELIEVES ARE USURPING STATE CONTROL OF RESOURCE POLICIES BUT IT ALSO UNDERSCORES GROWING DISPLEASURE AMONG MANY STATES WITH THE FEDERAL GOVERNMENT'S PRACTICE OF MANDATING PROGRAMS FOR STATES WITHOUT PROVIDING ANY FUNDS TO HELP IMPLEMENT THEM MANY OF THOSE MANDATED PROGRAMS DEAL WITH ENVIRONMENTAL MATTERS MANY ENVIRONMENTALISTS EXPECT INCREASING CONFRONTATIONS BETWEEN CASHSTRAPPED STATES AND ENVIRONMENTAL REGULATORS THROUGHOUT THE NATION WILLIAM PIERCE A SLUDGE AND WATERQUALITY EXPERT FOR THE FEDERAL EPA SAID THE AGENCY WILL TRY TO GET THE STATE TO RECONSIDER BUT HE WASN'T OPTIMISTIC WE HAVEN'T BEEN GETTING ALONG TOO WELL LATELY HE SAID HE ADDED THAT HE COULD RELATE TO THE STATE'S MONEY CONCERNS WE'RE IN THE SAME BOAT WE DON'T HAVE THE RESOURCES TO RUN THIS PROGRAM OURSELVES HE SAID IRONICALLY CALIFORNIA'S MR STROCK USED TO BE THE TOP ENFORCEMENT OFFICIAL AT THE FEDERAL EPA HE HELD THAT JOB FROM 1989 TO 1991 WHEN THE AGENCY WAS FORMULATING MANY OF THE MANDATES THE STATE NOW OPPOSES 9402250125 940225 FIRST DATA UNIT GETS CONTRACT NEW YORK INFORMATION PROCESSING COMPANY FIRST DATA CORP SAID ITS UNIT FIRST DATA RESOURCES WILL PROCESS CREDIT CARDS FOR MULTIBANCO COMERMEX A MAJOR MEXICAN RETAIL BANK FIRST DATA RESOURCES WHICH WILL PROVIDE PROCESSING AND MAILING SERVICES SAID THE CONTRACT WILL ALLOW THE COMPANY TO EXPAND ITS PRESENCE IN THE FASTGROWING CREDIT CARD MARKET MULTIBANCO COMERMEX HAS MORE THAN 350 BRANCH LOCATIONS IN MEXICO AND NEARLY HALF A MILLION CREDIT CARD ACCOUNTS 9402250124 940225 ECONOMY G7 GATHERING TO PUT RUSSIA IN THE SPOTLIGHT DESPITE INTERNAL FRICTIONS INDUSTRIAL NATIONS' CLUB TO FOCUS ON OUTSIDER BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GROUP OF SEVEN'S MEETING IN FRANKFURT TOMORROW WILL FOCUS LESS ON TROUBLES WITHIN THE CLUB AND MORE ON THE ECONOMIC PROBLEMS OF AN OUTSIDER RUSSIA NOTWITHSTANDING THE WORSENING TRADE TENSIONS BETWEEN THE G7'S TWO LARGEST ECONOMIES THE US AND JAPAN AND THE RESULTING SURGE IN THE YEN THE FINANCE MINISTERS AND CENTRAL BANKERS PLAN TO DEVOTE THE BULK OF THEIR TIME TO EXPLORING BETTER WAYS TO ENCOURAGE RUSSIAN REFORM AND RECOVERY ABOUT 90 MINUTES WERE SET ASIDE FOR MATTERS INVOLVING THE G7 ECONOMIES THEMSELVES SUCH AS HOW TO KINDLE HEALTHIER GROWTH IN THE SLUGGISH EUROPEAN AND JAPANESE ECONOMIES US OFFICIALS SAID THAT EXCHANGE RATES AND SPECIFICALLY THE RELATIONSHIP BETWEEN THE YEN AND THE DOLLAR AREN'T EXPECTED TO BE SIGNIFICANT TOPICS OFFICIALS ALSO SAID THEY DON'T PLAN TO ISSUE A FORMAL COMMUNIQUE AFTER THE MEETING A DECISION THAT SUGGESTS THEY DON'T INTEND TO SIGNAL ANY MAJOR POLICY CHANGES MOREOVER TREASURY SECRETARY LLOYD BENTSEN WENT OUT OF HIS WAY TO THROTTLE RUMORS THAT WASHINGTON AND TOKYO HAD QUIETLY AGREED THAT THE DOLLAR SHOULDN'T WEAKEN BEYOND A LEVEL OF 110 YEN TO THE DOLLAR THESE REPORTS ARE A TOTAL FABRICATION HE TOLD REPORTERS MR BENTSEN SAID HE WOULD MEET WITH JAPANESE FINANCE MINISTER HIROHISA FUJII AT THE MARGINS OF THE G7 SESSION I ASSUME THAT WE'LL BE TALKING ABOUT THE FRAMEWORK HE SAID ADDING THAT HE HAD NO INDICATION THAT HIS COUNTERPART PLANNED TO OFFER NEW PLANS FOR ENDING THE LOGJAM OVER HOW MUCH JAPAN WILL OPEN ITS MARKETS MEANWHILE HE SAID THE ADMINISTRATION IS CONSIDERING A WHOLE MYRIAD OF OPTIONS TO ADVANCE THE NEGOTIATIONS BUT HE REFUSED TO PROVIDE DETAILS THE GERMANS CALLED FOR THE G7 MEETING SEVERAL WEEKS AGO SPECIFICALLY TO ADDRESS MOUNTING DIVISIONS IN THE WEST OVER HOW TO PUSH ECONOMIC REFORMS IN RUSSIA MORE EFFECTIVELY THE G7 COUNTRIES THE US BRITAIN CANADA ITALY FRANCE GERMANY AND JAPAN WANT TO PUSH RUSSIA TO MAKE FASTER PROGRESS AGAINST INFLATION AND TO CURB GOVERNMENT SUBSIDIES FOR LARGE INEFFICIENT INDUSTRIES IN PARTICULAR THE GROUP WILL BE LOOKING AT WHAT CONDITIONS TO SET FOR SPEEDING UP THE FLOW OF FUNDS FROM THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK THE ENTIRE TOPIC OF RUSSIAN AID MEANWHILE IS CLOUDED BY US OUTRAGE OVER THE UNFOLDING SPY SCANDAL IN WHICH MOSCOW IS ALLEGED TO HAVE PAID 15 MILLION TO A CENTRAL INTELLIGENCE AGENCY OFFICIAL FOR HIGHLY SENSITIVE INFORMATION ALTHOUGH SOME LAWMAKERS ARE CALLING FOR A FREEZE IN US AID MR BENTSEN INDICATED THAT IN DISCUSSION WITH RUSSIAN OFFICIALS HE WOULD FOCUS ON REFORMS I DEAL WITH ECONOMICS HE SAID SEPARATELY RUSSIAN PRESIDENT BORIS YELTSIN'S SPEECH YESTERDAY WAS LIKELY TO STIR NEW WORRIES IN THE WEST ABOUT RUSSIA'S RELIABILITY ON FOREIGN POLICY AND ECONOMIC MATTERS MANY ARE GROWING DISCOURAGED ABOUT THE PACE OF REFORM AN IMF MISSION IN MOSCOW THIS WEEK HAS HAD A DIFFICULT TIME OBTAINING BASIC ECONOMIC FIGURES SUCH AS RUSSIA'S BALANCEOFPAYMENTS DEFICIT FOR LAST YEAR THAT ARE NECESSARY TO EVALUATE THE COUNTRY'S ECONOMIC CONDITION THE US HOPES TO GATHER SUPPORT FOR A PACKAGE OF STEPS THAT WILL FORM THE FOUNDATION FOR A SLIGHTLY MORE ACTIVIST POLICY THE STEPS INCLUDE PUSHING THE IMF TO SET CLEARER STANDARDS FOR WHAT MOSCOW MUST DO TO UNLOCK MORE AID INCLUDING THE SECOND HALF OF A 3 BILLION FUND ESTABLISHED TO SOFTEN DISLOCATIONS RESULTING FROM THE COUNTRY'S MOVE TO A MARKET ECONOMY IN ADDITION THE US WILL URGE THE WORLD BANK TO BE MORE AGGRESSIVE IN FINANCING DEVELOPMENT PROJECTS THE BANK HAS BEEN SLOW TO NEGOTIATE TERMS FOR RELEASING ITS SHARE OF 5 BILLION TO BE PROVIDED IN A G7 AID PLAN OFFICIALS AT THE IMF AND THE WORLD BANK FOR THEIR PART WOULD LIKE CLEARER MORE UNIFIED BACKING FROM THE G7 NATIONS WHICH CONTROL THE LARGEST BLOCK OF VOTES IN THE ORGANIZATIONS MICHEL CAMDESSUS THE MANAGING DIRECTOR OF THE IMF AND ERNEST STERN A MANAGING DIRECTOR OF THE WORLD BANK WILL ATTEND THE FRANKFURT MEETING MR CAMDESSUS SAID RECENTLY THAT THE IMF IS THE SCAPEGOAT FOR THE SLOW FLOW OF AID TO RUSSIA HE SAID THAT THE IMF HAS MOVED QUICKLY TO SUPPLY AID BUT THAT ECONOMIC CONDITIONS IN RUSSIA ARE TOO UNSETTLED TO RELEASE THE FUNDS RUSSIA WILL SEND THREE TOP OFFICIALS CENTRAL BANK PRESIDENT VIKTOR GERASHCHENKO ACTING FINANCE MINISTER SERGEI DUBININ AND ECONOMICS MINISTER ALEXANDER SHOKHIN TO THE G7 MEETING OFFICIALS EXPECT THEM TO REQUEST MORE AID AT A FASTER PACE BUT IT'S UNLIKELY THAT THE G7 WILL MAKE MORE COMMITMENTS UNTIL IT HAS A CLEARER IDEA FROM IMF AND OTHER OFFICIALS THAT REFORMS ARE PROCEEDING DISCUSSION OF HOW TO SPUR MORE GROWTH IN G7 COUNTRIES THROUGH INTERESTRATE CUTS DEREGULATION AND MEASURES TO PROMOTE FISCAL STABILITY WILL BE SECONDARY TO THE SEARCH FOR WAYS TO BOLSTER RUSSIAN REFORM EFFORTS 9402250123 940225 CAMBODIA'S BANK PUSHES FOR USING RIEL ENDING FOREIGNCURRENCY DOMINATION BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA TWO YEARS AFTER FOREIGN DONORS UNLEASHED A FLOOD OF US DOLLARS TO HELP REBUILD RAVAGED CAMBODIA THE COUNTRY'S CENTRAL BANK WANTS TO BREATHE LIFE BACK INTO ITS OWN CURRENCY THE RIEL OFFICIALLY THE RIEL IS CAMBODIA'S ONLY CURRENCY BUT SUCH BIGTICKET ITEMS AS CARS AND PROPERTY ARE BOUGHT AND SOLD WITH EITHER FOREIGN CASH PRIMARILY US DOLLARS AND THAI BAHT OR GOLD IN THIS CITY WHERE THE WEALTHIEST RESIDENTS INCLUDE HUNDREDS OF YOUNG FOREIGNAID WORKERS MANY RESTAURANTS AND PEDICAB DRIVERS ALSO INSIST ON THE GREENBACK SOME BANKS EVEN ARE FIGHTING TO ATTRACT US DOLLAR DEPOSITS ONE CRUDE SIGN OUTSIDE A BANK BRANCH IN PHNOM PENH OFFERS INTEREST RATES OF 85 THE DOMINANCE OF FOREIGN MONEY MEANS CAMBODIA'S CENTRAL BANK THE NATIONAL BANK OF CAMBODIA HAS LITTLE POWER TO FIGHT INFLATION BUT REBUILDING CONFIDENCE IN THE RIEL PROMISES TO BE DIFFICULT CAMBODIANS DON'T TRUST THEIR OWN CURRENCY OR BANKS MANY PREFER TO KEEP SAVINGS IN FOREIGN CASH RATHER THAN IN BANK ACCOUNTS EVEN THOUGH THAT MEANS FORGOING INTEREST INCOME AND RISKING THEFT SUCH WARINESS IS NATURAL GIVEN THE RIEL'S DISMAL HISTORY WHEN THE KHMER ROUGE SEIZED POWER IN 1975 IT ABOLISHED ALL MONEY AND BLEW UP THE CENTRAL BANK'S HEADQUARTERS EVEN WHEN THE RIEL CAME BACK INTO CIRCULATION AFTER VIETNAMESE TROOPS INVADED IN 1979 CAMBODIA'S BANKING SYSTEM NEVER TRULY RECOVERED SO THE FOREIGN INVESTORS WHO HAVE TRICKLED INTO THE COUNTRY DURING THE PAST FIVE YEARS HAVE RELIED ON US CASH THE SAME HAS BEEN TRUE OF FOREIGNAID GROUPS AND UNITED NATIONS AGENCIES THE KHMER ROUGE STILL POSES A THREAT WITH ITS GUERRILLA WAR AGAINST CAMBODIA'S FRAGILE GOVERNMENT MEANWHILE RAPID INFLATION CURRENTLY ABOUT 30 RAISES FEARS OF DEVALUATION THE RIEL'S OFFICIAL RATE AGAINST THE US DOLLAR HAS FALLEN SHARPLY OVER THE PAST TWO YEARS DESPITE ITS AMBITIONS FOR THE RIEL THE CENTRAL BANK MUST HELP CHANNEL DOLLARS INTO THE ECONOMY THREE TIMES A WEEK IT HOLDS AUCTIONS IN WHICH IT EXCHANGES US DOLLARS THROUGH LOANS FROM INTERNATIONAL AGENCIES FOR RIELS TO PAY CIVIL SERVANTS AUCTIONS PUT NEARLY 8 MILLION IN PRIVATE HANDS SINCE LATE SEPTEMBER CURRENTLY MAYBE MORE THAN HALF OF CAMBODIA'S MONEY SUPPLY IS NOT IN RIEL SAYS MAY TOLA HEAD OF THE CENTRAL BANK'S EXCHANGEMANAGEMENT DEPARTMENT CAMBODIA PAYS A HEAVY PRICE FOR RUNNING ITS ECONOMY ON OTHER COUNTRIES' CURRENCIES FOR ONE THING COUNTERFEITING OF US DOLLARS IS A SERIOUS PROBLEM KHMER ROUGE GUERRILLAS ARE RUMORED TO HAVE FLOODED TERRITORY UNDER THEIR CONTROL WITH FALSE BILLS MOREOVER CAMBODIANS LOSE OUT ON POTENTIAL INTEREST INCOME BY DEPENDING ON CASH BUT UNCONTROLLABLE INFLATION IS THE REAL DANGER OTHER COUNTRIES FIGHT INFLATION BY COAXING INTEREST RATES HIGHER TO DETER BORROWING AND ENTICE CONSUMERS TO SAVE WITH US DOLLAR INTEREST RATES HOVERING AT LOW LEVELS AROUND THE WORLD HOWEVER RATES CAN HARDLY RISE IN CAMBODIA MOST CAMBODIAN BANKS OFFER DEPOSIT RATES SO FAR BELOW INFLATION THAT SUBTLE CHANGES IN INTEREST RATES ARE UNLIKELY TO HAVE MUCH EFFECT ON INFLATION THE NATIONAL BANK'S FIGHT AGAINST INFLATION RESTS ON ITS ATTEMPTS TO AVOID LENDING MONEY TO THE GOVERNMENT THAT EFFORT ALREADY HAS HELPED SLASH INFLATION TO AROUND 30 FROM NEARLY 100 A YEAR AGO IT ISN'T CLEAR HOW THE CENTRAL BANK WILL REACH ITS 10 TARGET FOR 1994 9402250122 940225 TANDYCRAFTS TO BUY MORE SHARES FORT WORTH TEXAS TANDYCRAFTS INC SAID THAT IT COMPLETED THE REPURCHASE OF 100000 OF ITS COMMON SHARES BEGUN IN SEPTEMBER AND THAT ITS BOARD HAS AUTHORIZED THE REPURCHASE OF AS MANY AS 100000 ADDITIONAL SHARES THE SPECIALTY RETAILER WHICH HAS ABOUT 111 MILLION COMMON SHARES OUTSTANDING SAID IT WOULD PURCHASE THE SHARES FROM TIME TO TIME DEPENDING ON MARKET CONDITIONS 9402250121 940225 REVIEW & OUTLOOK EDITORIAL A NEW WAY TO VOTE' TWO STORIES ABOUT THE MANIPULATION OF MINORITY VOTERS CAME OUT OF LAST NOVEMBER'S ELECTIONS ONE ED ROLLINS'S TALE OF SUPPRESSING BLACK TURNOUT WAS FOUND BY NEW JERSEY AND FEDERAL OFFICIALS TO BE A FANTASY THE OTHER INVOLVING HUNDREDS OF LATINO AND BLACK VOTERS IN PHILADELPHIA WHO WERE PRESSURED INTO CASTING ILLEGAL ABSENTEE BALLOTS WAS SO REAL THAT LAST WEEK A FEDERAL JUDGE TOOK THE EXTRAORDINARY STEP OF REMOVING AN INCUMBENT STATE SENATOR AND ORDERING HIS OPPONENT SEATED JUDGE CLARENCE NEWCOMER RULED THAT A MASSIVE SCHEME OF ABSENTEE BALLOT FRAUD DECEPTION INTIMIDATION HARASSMENT AND FORGERY SO TAINTED A SPECIAL STATE SENATE ELECTION THAT HE WAS INVALIDATING ALL 1757 ABSENTEE BALLOTS THIS WEEK A FEDERAL APPEALS COURT CLEARED THE WAY FOR REPUBLICAN BRUCE MARKS THE WINNER AT POLLING PLACES ON ELECTION DAY TO REPLACE DEMOCRAT BILL STINSON SUSPICIONS ABOUT THE ELECTION WERE AROUSED WHEN IT WAS FOUND THAT IN KEY WARDS MR STINSON HAD WON UP TO 99 OF THE ABSENTEE BALLOTS THE PHILADELPHIA INQUIRER INTERVIEWED MORE THAN 330 VOTERS WHO WERE NOT ELIGIBLE TO VOTE ABSENTEE MORE THAN 40 APPARENTLY HAD THEIR VOTES FORGED AND OVER TWODOZEN VOTED TWICE SOME WERE IN JAIL AT THE TIME THEY WERE SUPPOSED TO HAVE VOTED THE ELECTION WAS SO FIERCELY CONTESTED BECAUSE IT DETERMINED WHICH PARTY CONTROLLED THE STATE SENATE IN FACT DEMOCRATS WERE SO AFRAID MR STINSON WOULD BE REMOVED THAT LAST WEEK THEY HURRIEDLY ADJOURNED THE SENATE FOR A MONTH TO GIVE THEM TIME TO APPEAL JUDGE NEWCOMER'S RULING AND ATTEMPT TO RETAIN CONTROL THE MOST DISTURBING EVIDENCE JUDGE NEWCOMER HEARD IS THAT PHILADELPHIA ELECTION OFFICIALS AIDED THE VOTER FRAUD BY ALLOWING STINSON WORKERS TO GO DOORTODOOR WITH ABSENTEE BALLOTS IN HAND HELPING HISPANICS AND BLACKS WITH A NEW WAY TO VOTE DEMOCRATIC COMMITTEEMAN WILLIAM JONES TESTIFIED TO THE STINSON CAMPAIGN'S CONTEMPT FOR THE ELECTORATE THERE WAS A JOKE GOING AROUND TO THE EFFECT THAT THEY'LL SIGN ANYTHING JUDGE NEWCOMER FOUND THE STINSON CAMPAIGN ENGAGED IN RACIALLY DISCRIMINATORY PRACTICES BY ACTIVELY MISREPRESENTING AND ABUSING LATINO AND BLACK VOTERS MUCH OF THIS WAS KNOWN SHORTLY AFTER THE ELECTION YET MR MARKS THE GOP CANDIDATE WAS STONEWALLED BY STATE COURTS THE FIRST JUDGE TO HEAR THE CASE WAS MARRIED TO A DEMOCRATIC PATRONAGE APPOINTEE A HALFDOZEN STATE COURTS DISMISSED MR MARKS'S CHALLENGES WITHOUT ADDRESSING THE MERITS OF HIS CASE THE JUSTICE DEPARTMENT WHICH QUICKLY DISPATCHED AGENTS TO NEW JERSEY TO TRACK DOWN ED ROLLINS'S PHANTOM PREACHERS WAITED A MONTH BEFORE RELUCTANTLY LOOKING INTO A CASE OF CLEAR AND DOCUMENTED FRAUD ACROSS THE RIVER IN PHILADELPHIA THE 1965 VOTING RIGHTS ACT WAS PASSED TO ADDRESS SUCH CASES HOWEVER JUSTICE'S CONCERNS HAVE INCREASINGLY SHIFTED TO SUCH CONSTITUTIONALLY SUSPECT PROJECTS AS RACIAL GERRYMANDERING IN FACT THIS WEEK JUSTICE ANNOUNCED THAT IT WOULD DEFEND A BIZARRELY SHAPED RACIAL GERRYMANDER IN GEORGIA THE FIRST TIME IT HAS EVER INTERVENED ON THE SIDE OF A STATE IN A VOTING RIGHTS CASE THE PHILADELPHIA STORY SHOWS HOW THE REAL NEED FOR THE VOTING RIGHTS ACT IS IN POLICING HOW PECULIAR LOCAL MORES TAINT ELECTIONS MR STINSON COUNTED ABSENTEE BALLOTS IN HIS OWN RACE ON ELECTION NIGHT HE SAYS HE WAS HELPING HIS MOTHER WHO WAS THE LOCAL ELECTION JUDGE IN FACT A THIRD OF THE 100 ELECTION WORKERS HIRED BY THE CITY WERE EITHER PARTY OFFICIALS OR THEIR RELATIVES SO LONG AS THERE ARE ELECTIONS LIKE MR STINSON'S THE NEED FOR FEDERAL OVERSIGHT IS CLEAR THE JUSTICE DEPARTMENT WOULD DO WELL TO FOCUS ON CLEAR CASES OF VOTER EXPLOITATION RATHER THAN CODIFYING DUBIOUS THEORIES OF POLITICAL ENTITLEMENT AFTER ALL IT WAS SIMILAR VIEWS THAT LED PRESIDENT CLINTON HIMSELF TO DECIDE HE COULDN'T APPOINT LANI GUINIER TO RUN THE CIVIL RIGHTS DIVISION AT JUSTICE 9402250120 940225 INTERNATIONAL GAMING PERMIT MINNEAPOLIS INTERNATIONAL GAMING MANAGEMENT INC RECEIVED A COASTAL WETLANDS PERMIT FROM THE MISSISSIPPI WILDLIFE FISHERIES & PARKS COMMISSION FOR A PROPOSED DOCKSIDE CASINO IN D'IBERVILLE MISS THE COMPANY SAID THE PERMIT CLEARS THE WAY FOR IT TO SEEK APPROVAL OF ITS APPLICATION FOR A PERMIT FROM THE ARMY CORPS OF ENGINEERS THE COMPANY SAID IT HAS ALSO APPLIED FOR A MISSISSIPPI GAMING LICENSE 9402250119 940225 ECONOMY DURABLE ORDERS INCREASED AGAIN DURING JANUARY BIGTICKET GOODS JUMPED 37 FROM PRIOR MONTH FOR SIXTH STRAIGHT GAIN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIGTICKET FACTORY ITEMS ROSE FOR THE SIXTH STRAIGHT MONTH IN JANUARY SUGGESTING THAT MANUFACTURERS WILL CONTINUE TO INCREASE PRODUCTION IN THE COMING MONTHS THE COMMERCE DEPARTMENT SAID ORDERS FOR DURABLE GOODS THOSE INTENDED TO LAST MORE THAN THREE YEARS LAST MONTH JUMPED 37 FROM DECEMBER WHEN THEY ROSE 21 MUCH OF THE GAIN STEMMED FROM A 139 RISE IN TRANSPORTATION ORDERS PARTICULARLY AIRCRAFT EXCLUDING TRANSPORTATION EQUIPMENT WHICH TENDS TO BE A VOLATILE SECTOR ORDERS WERE UP A MODEST 03 THE EIGHTH CONSECUTIVE RISE ON THIS BASIS THE FACT THAT WE'VE BEEN ABLE TO HOLD ONTO THESE GAINS FOR SEVERAL MONTHS INDICATES THAT THE MANUFACTURING SECTOR IS VERY STRONG SAID DAVID ROLLEY SENIOR FINANCIAL ECONOMIST FOR DRI/MCGRAW HILL THE RIPPLE EFFECT COULD BE SUBSTANTIAL TO KEEP UP WITH DEMAND FACTORIES ARE EXPECTED TO INCREASE PRODUCTION AND THEY MAY NEED MORE WORKERS TO DO SO JOHN SILVIA CHIEF ECONOMIST AT KEMPER FINANCIAL SERVICES INC ESTIMATES THAT ROUGHLY 20000 NEW FACTORY JOBS A MONTH WILL BE CREATED OVER THE NEXT THREE TO SIX MONTHS FINANCIALMARKET ANALYSTS READ THE REPORT PARTICULARLY CLOSELY BECAUSE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IN CONGRESSIONAL TESTIMONY THIS WEEK SAID HE CONSIDERED IT AN IMPORTANT INDICATION OF THE ECONOMY'S UNDERLYING STRENGTH THE STRONGER THE ECONOMY THE MORE LIKELY THE FED WILL SEE THE SORT OF INFLATION RISKS THAT WILL CAUSE IT TO INCREASE SHORTTERM INTEREST RATES AGAIN AT A HEARING CALLED YESTERDAY TO DISCUSS THE STATE OF THE GOVERNMENT'S THRIFTINDUSTRY CLEANUP SEN DONALD RIEGLE D MICH SAID TO MR GREENSPAN YOU DON'T SEE YET ANY BROAD EVIDENCE OF A BUILDUP OF INFLATIONARY PRESSURE THAT REALLY WORRIES YOU THE FED CHAIRMAN REPLIED THAT IS SUBSTANTIALLY CORRECT MR GREENSPAN EXPLAINED THAT THE FED RAISED INTEREST RATES NOT BECAUSE IT SEES INFLATIONARY PRESSURES EMERGING BUT BECAUSE INTEREST RATES HAD BEEN REDUCED TO THE LEVEL THAT HISTORY TELLS US IF EXTENDED INDEFINITELY EVENTUALLY DOES ENGENDER INFLATIONARY PRESSURES THE RISE IN AIRCRAFT ORDERS IN JANUARY DOESN'T REFLECT THE RECENTLY ANNOUNCED PURCHASE OF COMMERCIAL AIRCRAFT BY SAUDI ARABIA THAT ORDER WON'T SHOW UP IN THE GOVERNMENT'S FIGURES FOR SEVERAL MONTHS IN ADDITION TO THE RISE IN TRANSPORTATION EQUIPMENT ORDERS FOR ELECTRONIC GEAR JUMPED 65 LAST MONTH AFTER SEVERAL MONTHS OF GAINS ORDERS FOR INDUSTRIAL EQUIPMENT DECLINED 26 AND ORDERS FOR PRIMARY METALS SLIPPED 02 ANALYSTS SAID THE CONTINUED STRENGTH IN ORDERS PARTICULARLY FOR CAPITAL EQUIPMENT IS THE RESULT OF LOW INTEREST RATES THERE IS ALSO A BRIGHTER OUTLOOK AND ANTICIPATION ABOUT THE FUTURE SAID THOMAS RUNIEWICZ INDUSTRIAL ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA SHIPMENTS FELL LAST MONTH FOR THE FIST TIME SINCE JULY AND THE BACKLOG OF ORDERS ROSE FOR THE FIRST TIME SINCE EARLY LAST YEAR THESE CHANGES WERE MOST LIKELY WEATHERRELATED MANY PLANTS CLOSED DOWN BECAUSE OF SEVERELY COLD WEATHER ACROSS MOST OF THE NATION AS WELL AS THE CALIFORNIA EARTHQUAKE ORDERS YOU CAN DO ON THE PHONE BUT SHIPMENTS HAVE TO GO OUT THE DOOR AND THAT WAS IMPOSSIBLE IN SOME PLACES MR SILVIA SAID SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 25000 LAST WEEK TO 385000 THE FOURWEEK AVERAGE FOR CLAIMS DURING THE WEEK WAS 378000 UP FROM 371250 THE PREVIOUS WEEK AND THE HIGHEST LEVEL FOR THE MEASURE SINCE THE WEEK OF OCT 12 1992 ALTHOUGH SOME OF THE INCREASE IN CLAIMS MAY REFLECT THE SEVERE WINTER WEATHER AND FLUKES IN THE WAY THE GOVERNMENT ADJUSTS THE FIGURES TO REMOVE USUAL SEASONAL FLUCTUATIONS SOME ECONOMISTS HAVE BEEN TROUBLED ABOUT THE IMPLICATIONS OF THE PERSISTENT RISE IN UNEMPLOYMENT CLAIMS SINCE THE START OF THE YEAR THE LABOR MARKETS ARE SIGNALING A SOMEWHAT LESS BUOYANT DEGREE OF ACTIVITY MR GREENSPAN SAID THIS WEEK CITING THE RECENT RISE IN CLAIMS FOR JOBLESS PAY FIGURES IN BOTH REPORTS HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9402250118 940225 JAPANESE VEHICLE EXPORTS SLIDE TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES PLUMMETED 27 IN JANUARY FROM A YEAR EARLIER TO 390418 UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID IT WAS THE 10TH STRAIGHT MONTH OF YEARONYEAR DECLINES IN AUTO EXPORTS VEHICLE EXPORTS TO THE US FELL 18 THE SIXTH STRAIGHT MONTH OF DECLINES WHILE THOSE TO THE EUROPEAN UNION DROPPED 38 AFTER A YEARONYEAR RECOVERY IN NOVEMBER AND DECEMBER 9402250117 940225 MET LIFE EXPECTED TO PAY 15 MILLION TO PENNSYLVANIA IN CHURNING' CASES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO HAS AGREED TO PAY AT LEAST A 15 MILLION FINE IN A SETTLEMENT WITH PENNSYLVANIA INSURANCE REGULATORS OVER ALLEGATIONS THAT SOME OF ITS AGENTS CHEATED CUSTOMERS THE SETTLEMENT EXPECTED TO BE ANNOUNCED NEXT MONTH WOULD CONCLUDE A LENGTHY INVESTIGATION BY THE STATE PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAID THE INQUIRY CENTERED ON HOW SOME MET AGENTS IN THE PITTSBURGH AREA ALLEGEDLY EXPLOITED CUSTOMERS BY ENCOURAGING THEM TO USE THE VALUE ACCUMULATED IN THEIR OLD LIFE INSURANCE POLICIES TO BUY NEW POLICIES THE PRACTICE CALLED CHURNING PRODUCED COMMISSIONS FOR THE AGENTS BUT HURT POLICYHOLDERS THAT'S BECAUSE COMMISSIONS AND OTHER FRONTEND FEES MAKE IT UNECONOMICAL TO TRADE IN OLD POLICIES FOR NEW ONES AN AGENT WHO SELLS A LIFE INSURANCE POLICY RECEIVES AS A COMMISSION 55 OF THE FIRST YEAR OF PREMIUMS THE PENNSYLVANIA INVESTIGATION IS SEPARATE FROM A 19STATE INQUIRY LED BY FLORIDA INTO HOW SOME MET AGENTS ALLEGEDLY TRICKED CONSUMERS INTO BUYING LIFE INSURANCE BY CALLING IT A SAVINGS VEHICLE AND OMITTING MENTION OF INSURANCE WE'VE MADE SIGNIFICANT HEADWAY IN THE INVESTIGATION SAID STEVE PARTON FLORIDA ASSISTANT ATTORNEY GENERAL MET IS CURRENTLY NEGOTIATING WITH THE STATES IN HOPES OF REACHING A GLOBAL SETTLEMENT THAT WOULD KEEP IT FROM HAVING TO CRAFT SEPARATE AGREEMENTS WITH EACH STATE STICKING POINTS INCLUDE HOW TO DETERMINE WHICH CUSTOMERS ARE ELIGIBLE FOR REFUNDS MET HAS OFFERED TO REFUND AS MUCH AS 30 MILLION TO CUSTOMERS WHO BELIEVED THAT THEY WERE PUTTING MONEY INTO A SAVINGS ACCOUNT INSTEAD OF BUYING LIFE INSURANCE FLORIDA HAS YET TO BEGIN SETTLEMENT TALKS MR PARTON SAID BUT A SPOKESWOMAN FOR THE STATE INSURANCE DEPARTMENT SAID THE INVESTIGATION IS LIKELY TO BE COMPLETED SOON SHE SAID ANY SETTLEMENT WITH MET IS LIKELY TO INCLUDE A FINE AND A DEMAND THAT VICTIMS BE REIMBURSED THE STATE ALSO WANTS EVIDENCE THAT MET HAS BEEFED UP ITS REGULATORYCOMPLIANCE PROGRAM THE PENNSYLVANIA FINE WOULD BE ONE OF THE LARGEST IN THE HISTORY OF THE STATE'S INSURANCE DEPARTMENT MET ALSO WOULD REIMBURSE CUSTOMERS WHOSE POLICIES WERE CHURNED PEOPLE FAMILIAR WITH THE TALKS SAID OFFICIALS IN PENNSYLVANIA AND AT METLIFE DECLINED TO COMMENT YESTERDAY IN THE LAST YEAR MET HAS LET GO 16 AGENTS AND SALES MANAGERS IN THE PITTSBURGH AREA AND DEMOTED THREE OTHER MANAGERS BECAUSE OF THE INVESTIGATION AS A CONDITION OF SETTLING CHARGES INSURANCE DEPARTMENTS OFTEN DEMAND THAT INSURANCE COMPANIES DISMISS EMPLOYEES TIED TO WRONGDOING MET'S TROUBLES WITH STATE REGULATORS HAVE BEGUN TO LAND THE COMPANY IN COURT SEVERAL LAWSUITS HAVE BEEN FILED BY MET POLICYHOLDERS WHO CLAIM THE ALLEGED FRAUD COMMITTED BY THE COMPANY AND ITS AGENTS HAVE COME AT THEIR EXPENSE MET IS A MUTUAL INSURANCE COMPANY MEANING THAT IT IS OWNED BY POLICYHOLDERS PROFITS IN THEORY AT LEAST BELONG TO POLICYHOLDERS MET ALSO HAS BEEN SUED BY ONE OF ITS FORMER EXECUTIVES GARRY VOITH WHO ALLEGES HE WAS WRONGLY DISMISSED MR VOITH WAS ONE OF SEVERAL HIGHLEVEL EXECUTIVES MET FIRED LAST YEAR FOR WHAT MET SAID WAS HIS ROLE IN THE ACTIONS NOW BEING INVESTIGATED BY FLORIDA AND THE OTHER STATES MR VOITH CLAIMS THAT HE WAS FIRED TO COVER UP FOR MISCONDUCT BY OTHER MET OFFICIALS MET DECLINED TO COMMENT ON THE PENDING LITIGATION 9402250116 940225 PHYCOR TO BUY PHYSICIAN GROUP NASHVILLE TENN PHYCOR INC AGREED TO ACQUIRE A LEXINGTON KEN PHYSICIAN GROUP IN A STOCK AND CASH TRANSACTION VALUED AT 67 MILLION PHYCOR WHICH OPERATES 19 MULTISPECIALTY CLINICS SAID THE 125PHYSICIAN GROUP THE LEXINGTON CLINIC WILL BE THE LARGEST TO JOIN PHYCOR THE AGREEMENT IS SUBJECT TO REGULATORY APPROVAL AND APPROVAL OF LEXINGTON CLINIC SHAREHOLDERS 9402250115 940225 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC JEFFREY CHRISTENSEN 43 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF OPERATIONS AT THIS FOOD SERVICES COMPANY'S DENNY'S RESTAURANT DIVISION MR CHRISTENSEN MOST RECENTLY SERVED AS A DIVISION VICE PRESIDENT FOR PIZZA HUT A UNIT OF PEPSICO INC 9402250114 940225 POLITICS & POLICY HEALTHCARE REFORM FACES DEADLOCK IN CONGRESS AS LAWMAKERS WRANGLE OVER RIVAL PROPOSALS BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE GREAT DANGER FOR PRESIDENT CLINTON ON HEALTHCARE THESE DAYS ISN'T JUST THAT HIS PLAN HAS STALLED IN CONGRESS BUT THAT NONE OF THE ALTERNATIVES ARE MOVING EITHER MOTHER TERESA COULDN'T GET A MAJORITY VOTE ON A HEALTH PLAN RIGHT NOW SAYS HEALTHCARE LOBBYIST FRED GRAEFE AND UNLESS THE ADMINISTRATION OR ITS ALLIES MOVE TO BREAK THE STALEMATE THEY RISK HAVING LAWMAKERS REVERT TO THE FAMILIAR WASHINGTON POSE OF NO CONSENSUS NO ACTION STILL LAWMAKERS EXPECT SOME KIND OF HEALTH BILL TO BE ENACTED THIS YEAR AFTER DEADLOCKING EARLIER THIS WEEK DEMOCRATS ON THE WAYS AND MEANS HEALTH SUBCOMMITTEE WERE MORE HOPEFUL OF AGREEMENT LAST NIGHT AND IRONICALLY THE ADMINISTRATION IS LOOKING TO ITS SOMETIME CRITIC CALIFORNIA DEMOCRATIC REP FORTNEY PETE STARK TO REPORT A PLAN THAT WILL SHOW SOME MOVEMENT TOWARD REFORM ALBEIT WITH MORE OF A GOVERNMENT ROLE THAN THE PRESIDENT'S PROPOSAL SOMEBODY HAS TO MOVE SAYS DEMOCRATIC REP GEORGE MILLER OF CALIFORNIA ONE OF ABOUT 10 LIBERALS WHO PARTICIPATED IN A SOBER MEETING WITH THE PRESIDENT AT THE WHITE HOUSE LATE WEDNESDAY IF THERE'S NO CONSENSUS NOBODY HAS TO DO ANYTHING THEN TIME BECOMES YOUR ENEMY THE WHITE HOUSE'S MOST URGENT CHALLENGE IS TO KEEP UP THE PRESSURE FOR ACTION WHILE PRESERVING THE BASIC ELEMENTS OF THE CLINTON PLAN IN SOME RECOGNIZABLE FORM YESTERDAY MR CLINTON TOUTED HIS PLAN AMONG SENIOR CITIZENS IN CONNECTICUT WHERE HE BRUSHED ASIDE RECENT SETBACKS IN HOUSE SUBCOMMITTEES AND POINTEDLY PRAISED REP STARK THE CHAIRMAN OF THE WAYS AND MEANS HEALTH PANEL AS AN ALLY COMMITTED TO UNIVERSAL COVERAGE FOR THE MOMENT AT LEAST THERE IS NO BROAD WHITE HOUSE STRATEGY TO JUMPSTART THE PROCESS WITH NO OTHER HEALTHCARE PROPOSAL IN A COMMANDING POSITION ON CAPITOL HILL THERE IS NO CLEAR CAMP RIGHT NOW WITH WHICH TO BARGAIN BUT WITH FULL COMMITTEE ACTION IN THE HOUSE AND SENATE NOT SCHEDULED BEFORE MIDAPRIL IN MOST CASES THE NEXT SIX WEEKS PROVIDE A WINDOW FOR ALL CAMPS TO REEVALUATE AND REFINE THEIR POSITIONS FOR THE ADMINISTRATION WHICH LACKS A CLEAR PATH IN THE HOUSE THE MOST IMPORTANT TASK MAY BE TO FORTIFY RELATIONS WITH SENATE GOP MODERATES THE MODERATES ARE UNDER PRESSURE FROM CONSERVATIVES TO RESIST ANY COMPROMISE AND PARTISAN LINES COULD HARDEN AFTER A SENATE REPUBLICAN RETREAT NEXT WEEK MINDFUL OF THIS MR CLINTON STRUCK A BIPARTISAN NOTE BY HOSTING A WHITE HOUSE DINNER TUESDAY FOR SENATORS OF BOTH PARTIES BUT THE DINNER'S OUTWARD CONVIVIALITY AND WIDE EXPRESSIONS OF SUPPORT FOR THE PRESIDENT'S GOAL OF UNIVERSAL COVERAGE CONTRASTS WITH THE THICKET OF DETAILS AHEAD WHAT MAKES THE TASK SO DIFFICULT ISN'T JUST THE IMMENSITY OF THE LEGISLATION BUT THE FACT THAT PULLING AT ONE THREAD CAN UNRAVEL THE LARGER FABRIC CONGRESS IS ACCUSTOMED TO BIG BUDGET BILLS THAT CAN INVOLVE MANY COMMITTEES BUT THE LINES OF AUTHORITY ARE MUCH CLEARER IN THOSE CASES AND THE PIECES ARE INTERCHANGEABLE AS LONG AS THE BOTTOM LINE IS MET IN THE CASE OF HEALTHCARE THOUGH LAWMAKERS MUST NOT ONLY BE COSTCONSCIOUS BUT CREATE A SYSTEM THAT WORKS THE ADMINISTRATION COULD WIN VOTES EASILY ENOUGH BY ABANDONING CONTROVERSIAL PIECES OF ITS PLAN BUT IT AND CONGRESS WILL STILL NEED TO COME UP WITH SOLUTIONS TO REPLACE JETTISONED PROVISIONS THE PRESIDENT'S PROPOSAL TO SET UP SOCALLED ALLIANCES HUGE POWERFUL REGIONAL HEALTHINSURANCEBUYING POOLS WON'T SURVIVE CONGRESS BUT IT IS STILL LIKELY THAT SOME TYPE OF PURCHASING POOLS WILL BE ENACTED SINCE PORTIONS OF THE SAME IDEA ARE PART OF RIVAL PLANS PROPOSED BY DEMOCRATIC REP JIM COOPER OF TENNESSEE AND GOP SEN JOHN CHAFEE OF RHODE ISLAND THE REAL DEBATE OVER THE PURCHASING POOLS IS ABOUT HOW FAR TO GO AND WHAT TO MAKE MANDATORY SUPPORTERS OF THE COOPER BILL BELIEVE THAT ENROLLMENT IN THE POOLS SHOULD BE REQUIRED OF BUSINESSES WITH FEWER THAN 100 WORKERS BUT MODERATE REPUBLICANS LIKE REP ALEX MCMILLAN OF NORTH CAROLINA WOULD LIKE TO SEE A MORE VOLUNTARY APPROACH AKIN TO SEN CHAFEE'S IN WHICH ENROLLMENT WOULD BE OPTIONAL FOR ALL EMPLOYERS FEARING THAT THE ALLIANCES COULD PROVE TOO BIG LIKE GIANT FARM COOPERATIVES THEY ALSO WANT MORE THAN ONE IN A SINGLE REGION OR STATE TO ENSURE COMPETITION WHILE OPEN TO COMPROMISE THE ADMINISTRATION WORRIES THAT IF IT GIVES AWAY TOO MUCH IT WILL UNDERMINE ITS ABILITY TO ENFORCE PROPOSED CAPS ON THE ALLOWABLE ANNUAL INCREASE IN HEALTHINSURANCE PREMIUMS FRANKLY I THINK THE PREMIUM CAPS HAVE VERY LITTLE CHANCE OF PASSING AROUND HERE SAYS DEMOCRATIC SEN KENT CONRAD OF NORTH DAKOTA A MEMBER OF THE FINANCE COMMITTEE YET AS WITH THE BUYING POOLS THE COST CONTROLS HAVE BEEN EMBRACED IN CONCEPT BY MODERATE REPUBLICANS LIKE MISSOURI SEN JOHN DANFORTH A FINANCE MEMBER AND SEN NANCY KASSEBAUM OF KANSAS THE TOP GOP MEMBER OF THE LABOR AND HUMAN RESOURCES COMMITTEE THE WHITE HOUSE PRIVATELY EXPECTS PREMIUM CAPS WILL BE DILUTED TO A CEILING THAT'S HIGHER THAN THE GENERAL INFLATION RATE AND ONE THAT'S PHASED IN OVER A LONGER TIME PERIOD AMONG THE COMPETING PLANS IN THE WAYS AND MEANS COMMITTEE FOR EXAMPLE IS ONE TO SET A SERIES OF MARKERS THAT WOULD TRIGGER COST CONTROLS IF COMPETITION ALONE DOESN'T HOLD DOWN EXPENDITURES IN THE FUTURE ON A HOST OF ISSUES THE MIDDLE GROUND IS OCCUPIED BY YOUNG AMBITIOUS POLITICAL BROKERS WHO SWEAR BY THE IDEAS OF MANAGED COMPETITION BUT HAVE EACH MADE COMPROMISES TO SATISFY IMPORTANT CONSTITUENCIES MANY OF THE EXPERTS AND ACADEMICS WHO HELPED SHAPE THE ORIGINAL MANAGEDCARE DEBATE ARE MEETING THIS WEEK AT JACKSON HOLE WYO TO REVISIT THE ISSUE BUT IN TERMS OF PRACTICAL POLITICS THEIR IDEAS ARE FRAUGHT WITH CONTRADICTIONS ON ONE HAND THEIR FAITH IN MARKETS MAKES LIBERALS UNEASY ON THE OTHER THEIR WILLINGNESS TO USE THE TAX CODE TO INFLUENCE INDIVIDUAL HEALTHCARE CHOICES FRIGHTENS CONSERVATIVES THIS IS CLEAREST IN THE DEBATE OVER THE ADMINISTRATION'S PROPOSAL TO REQUIRE EMPLOYERS TO CONTRIBUTE AS MUCH AS 80 OF THE COST OF PREMIUMS FOR THEIR WORKERS THAT BURDEN HAS PROVOKED ANGER AMONG BUSINESSES MR CLINTON BROUGHT THIS ON HIMSELF IN PART BECAUSE HE WAS RELUCTANT TO BUCK ORGANIZED LABOR AND EMBRACE PROVISIONS ON THE TAXATION OF BENEFITS THAT WERE ESPOUSED BY THE JACKSON HOLE GROUP MR COOPER HAS RESHAPED THESE TAX PROVISIONS HIMSELF IN A MORE REGRESSIVE FASHION AND HIS PLAN LACKS ANY EMPLOYER MANDATE SUCH AS THE ONE PROPOSED BY THE JACKSON HOLE GROUP MR CHAFEE'S PLAN IS IN FACT THE BOLDEST ON THE TAX SIDE BUT BY REJECTING ANY EMPLOYER MANDATE HIS PLAN LIKE MR COOPER'S COMES UP SHORT IN DOLLARS TO MAKE HEALTH CARE TRULY AFFORDABLE FOR WORKINGCLASS FAMILIES THIS HAS ENCOURAGED INTEREST IN A HYBRID SCHEME THAT WOULD EXEMPT SMALL BUSINESS FROM THE EMPLOYER MANDATE AND INSTEAD COMBINE ELEMENTS OF MR CLINTON'S PLAN AND OF MR CHAFEE'S PROPOSAL THAT ALL WORKERS BE REQUIRED TO BUY INSURANCE EVEN SOME SENATE CONSERVATIVES SPEAK OF THE NEED TO REQUIRE EMPLOYERS WHO NOW PROVIDE INSURANCE TO CONTINUE COVERAGE WHATEVER SCHEME IS ADOPTED BUT ANY SUCH HYBRID SCHEME COULD LEAD TO MARKET DISTORTIONS BECAUSE OF NECESSARILY ARBITRARY DEFINITIONS SUCH AS WHAT CONSTITUTES A SMALL BUSINESS HOWEVER THE CONGRESSIONAL DEBATE UNFOLDS IT WILL BE INFLUENCED BY FORTHCOMING ESTIMATES BY THE CONGRESSIONAL BUDGET OFFICE WHICH IS OPENLY SKEPTICAL OF MUCH OF WHAT PURE MANAGED COMPETITION PROMISES AS A RULE CBO'S SCOREKEEPING CONVENTIONS TEND TO GIVE LESS CREDIT TO NEW POLICY IDEAS AND ONE OF THE RISKS NOW IS THAT BUDGET STANDARDS WILL DISCOURAGE INNOVATIVE THINKING AND LEAD LAWMAKERS TO MAKE CHOICES THAT COULD PROVE MORE COSTLY IN THE LONG RUN THESE ARE THE OPENING MOVES IN ABOUT THREE OR FOUR DIFFERENT CHESS GAMES AND THERE ARE MASTERS ON ALL SIDES SAYS IOWA DEMOCRATIC SEN TOM HARKIN I NEVER PREDICT THE OUTCOME OF A CHESS GAME AFTER THE OPENING MOVES MANDATORY ALLIANCES CLINTON CALLS FOR LARGE REGIONAL INSURANCEBUYING POOLS RIVALS WANT VOLUNTARY ARRANGEMENTS OR TO PERMIT MORE BUSINESSES TO OPT OUT PREMIUM CAPS BY THE YEAR 2000 CLINTON WOULD CAP THE ALLOWABLE ANNUAL INCREASE IN HEALTHINSURANCE PREMIUMS AT THE GENERAL INFLATION RATE BUT CONSERVATIVES FEAR PRICE CONTROLS WHILE SOME DEMOCRATS WOULD TRIGGER CONTROLS ONLY IF COMPETITION FIRST FAILS EMPLOYER MANDATE CLINTON WOULD REQUIRE COMPANIES TO PAY 80 OF PREMIUM COSTS FOR WORKERS RIVALS WANT NO MANDATE OR WANT THE BURDEN PLACED ON THE INDIVIDUAL HYBRID PROPOSALS COULD PROVE HARD TO ADMINISTER TAXATION OF BENEFITS CLINTON WOULD IMPOSE A MODEST FUTURE CAP ON WHAT HEALTHCARE BENEFITS COULD BE EXCLUDED FROM INCOME PROPONENTS OF A PURER MANAGED COMPETITION APPROACH WANT TAX CHANGES BUT DISAGREE OVER WHERE TO IMPOSE TAX PENALTIES AND HOW TO RECYCLE REVENUES AS TAX BREAKS 9402250113 940225 THE DEAL COLLAPSES WHAT COLLAPSE OF TCI MERGER MEANS FOR DEALS BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DAMN THE TORPEDOES HALF SPEED AHEAD THAT'S THE LESSON BEING DRAWN FROM THE STUNNING COLLAPSE OF THE BELL ATLANTICTELECOMMUNICATIONS DEAL BY CABLE AND PHONE COMPANY EXECUTIVES WHO WANT TO BUILD THEIR OWN SECTIONS OF THE INFORMATION HIGHWAY THE DEAL'S DEMISE WON'T MEAN THE DEATH OF SIMILAR PROPOSED ALLIANCES THEY SAY THE COMPUTER TELEPHONE AND CABLE INDUSTRIES ARE ON A COLLISION COURSE BECAUSE OF THE EXPLOSION OF DIGITAL TECHNOLOGY EASING OF REGULATIONS AND GROWING COMPETITION THERE'S CONVERGENCE GOING ON IN THESE INDUSTRIES AND THERE ARE RELATIONSHIPS THAT ARE GOING TO BE FORMED BY TELEPHONE AND CABLE COMPANIES TO PUT THEIR STRENGTHS TOGETHER SAYS RICHARD D MCCORMICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF U S WEST INC BUT THE DEAL'S COLLAPSE WILL SLOW THE PACE OF THE ALLIANCEMAKING THE REASON IS NOT THAT POTENTIAL PARTNERS WILL SECOND GUESS THE SOUNDNESS OF THE STRATEGY BUT THAT THE LOOMING THREAT OF AN INDUSTRY COLOSSUS HAS BEEN ELIMINATED SAYS THOMAS R GAGE A VICE PRESIDENT AT GEMINI CONSULTING A BELL ATLANTICTCI COMBINATION OFFERING PHONE AND INTERACTIVE VIDEO SERVICES NATIONWIDE WOULD HAVE THREATENED THE BUSINESSES OF VIRTUALLY EVERY LARGE CABLE AND PHONE COMPANY NOW WITH THE PHONECABLE DEAL OF THE CENTURY SCUTTLED THE HEAT IS OFF MR GAGE SAYS SO WHAT WILL THE DEALS LOOK LIKE NOW FOR ONE THING THE PRICETAGS MAY BE LOWER IT'S GOING TO MAKE SELLERS THINK TWICE ABOUT TRYING TO HOLD OUT FOR TOP DOLLAR SAYS STEVEN YANIS AN ANALYST AT KIDDER PEABODY & CO SOME COMPANIES MAY DECIDE THEY NO LONGER NEED TO BE PART OF AN OUTRIGHT MERGER INSTEAD THEY MAY CONSIDER PARTNERSHIPS SUCH AS THE VENTURE FORMED BY SOUTHWESTERN BELL CORP AND COX ENTERPRISES INC TO ACQUIRE CABLE PROPERTIES OR U S WEST'S 25 BILLION DEAL WITH TIME WARNER INC TO BUILD INTERACTIVE VIDEO SYSTEMS IT'S ALWAYS EASIER TO DO A JOINT VENTURE WHERE THERE'S NO CHANGE IN CONTROL SAYS MR YANIS MR MCCORMICK ONE OF THE ARCHITECTS OF THE TIME WARNERU S WEST ALLIANCE ARGUES THAT THE ELEGANCE OF THE BELL ATLANTICTCI MERGER WAS PERFECT ALIGNMENT OF CORPORATE INTERESTS WHEN YOU HAVE A COMMON OWNER ON THE OTHER HAND OURS WAS EASIER TO DO DIDN'T REQUIRE AS MUCH MONEY AND WE DON'T HAVE ANY CULTURAL ISSUES TO DEAL WITH OTHER FALLOUT THE DEAL'S COLLAPSE MAY HELP VALIDATE THE STRATEGIES OF SUCH BABY BELLS AS AMERITECH AND PACIFIC TELESIS GROUP WHICH HAVE SHUNNED CABLE ALLIANCES INSTEAD THESE COMPANIES ARE SPENDING BILLIONS OF DOLLARS TO REBUILD THEIR PHONE SYSTEMS INTO TWOWAY VIDEO PIPELINES SOME EXECUTIVES SAY THE UNSETTLED REGULATORY ENVIRONMENT THAT BELL ATLANTIC AND TCI CITED FOR THEIR DEAL'S DEMISE ALSO CAN'T BE DISMISSED IN ADDITION TO THE 7 CABLE RATE CUT ORDERED THIS WEEK BY THE FEDERAL COMMUNICATIONS COMMISSION CONGRESS IS CONSIDERING LEGISLATION THAT WOULD TEAR DOWN THE BARRIERS SEPARATING THE PHONE AND CABLE PLAYERS WITH CABLE COMPANIES POSSIBLY COMING UNDER EVEN GREATER REGULATION THEY MAY MAKE LESS ATTRACTIVE PARTNERS FOR THE HEAVILY REGULATED BABY BELLS FOR THE BELLS A LOT OF THE INTEREST IS ENTERING BUSINESSES WHERE YOU DON'T HAVE THOSE SHACKLES SAYS ANDY ZIMMERMAN A TELECOMMUNICATIONS CONSULTANT AT COOPERS & LYBRAND AND THERE'S ANOTHER POSSIBILITY WHILE THE COLLAPSE OF THE DEAL MAY TEMPORARILY SLOW DOWN OTHER CABLEPHONE ALLIANCES OVER THE LONG TERM IT COULD HAVE THE OPPOSITE EFFECT SINCE IT KNOCKED DOWN THE PRICES OF CABLE STOCKS IT COULD MAKE CABLE PROPERTIES MORE ATTRACTIVE TO SUITORS THAT COULD EASE THE CONCERNS OF SOME PHONE COMPANIES THAT HAVE SHUNNED CABLE DEALS BECAUSE THEY THOUGHT THE PRICES WERE TOO RICH SEE RELATED ARTICLE WILL THE FCC'S CABLE RATE CUTS SLOW TRAFFIC ON INFORMATION SUPERHIGHWAY WSJ FEB 25 1994 9402250112 940225 BAXTER WITHDRAWS GAMMAGARD CITING HEPATITIS C IN USERS DEERFIELD ILL BAXTER INTERNATIONAL INC SAID IT LAUNCHED A WORLDWIDE WITHDRAWAL OF ITS GAMMAGARD INTRAVENOUS IMMUNEGLOBULIN PRODUCT AFTER LEARNING THAT A SMALL NUMBER OF PATIENTS WHO USED IT APPARENTLY CONTRACTED HEPATITIS C GAMMAGARD IS A CONCENTRATE OF HUMAN PROTEINS KNOWN AS IMMUNOGLOBULINS WHICH ARE DERIVED FROM DONATED BLOOD PLASMA IT'S USED IN TREATING A NUMBER OF INHERITED IMMUNOLOGICAL DEFICIENCIES AND IN APPLICATIONS SUCH AS BONEMARROW TRANSPLANTS WHILE THERE IS NO APPROVED TEST THAT CAN DIRECTLY DETECT THE HEPATITIS C VIRUS BAXTER SAID THE DONATED PLASMA IS SCREENED FOR ANTIBODIES TO HEPATITIS C AND OTHER VIRUSES UNTIL NOW THE COMPANY SAID THERE HAVE BEEN NO REPORTS OF VIRAL TRANSMISSION INCLUDING HEPATITIS C ASSOCIATED WITH THE PRODUCT SINCE ITS APPROVAL GAMMAGARD HAS BEEN SOLD IN EUROPE SINCE 1983 AND SINCE 1986 IN THIS COUNTRY HEPATITIS C WHICH IS TYPICALLY ACQUIRED THROUGH BLOOD TRANSFUSIONS OR THROUGH INTIMATE CONTACT CAN LEAD TO CHRONIC HEPATITIS OR TO SERIOUS LIVER DISEASE SUCH AS CIRRHOSIS A SPOKESMAN FOR BAXTER'S HYLAND DIVISION WHICH MANUFACTURES THE PRODUCT SAID THE NUMBER OF PEOPLE RECEIVING THE PRODUCT IS IN THE THOUSANDS THE COMPANY SAID IT LEARNED FROM RECENT DOCTORS' REPORTS THAT 14 PATIENTS WHO USED THE PRODUCTS MAY HAVE CONTRACTED HEPATITIS C ALTHOUGH IT STRESSED THAT IN SOME CASES OTHER RISK FACTORS WERE AT WORK HYLAND BASED IN GLENDALE CALIF SAID THAT IT HAS APPLICATIONS PENDING WITH THE FOOD AND DRUG ADMINISTRATION AND CERTAIN OTHER COUNTRIES' REGULATORS ON A MODIFIED IMMUNEGLOBULIN PRODUCT IN WHICH THE CONCENTRATE IS TREATED WITH AN ORGANIC SOLVENT AND A DETERGENT AIMED AT INACTIVATING LIPIDENVELOPED VIRUSES SUCH AS HEPATITIS C IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BAXTER CLOSED AT 22625 DOWN 625 CENTS 9402250111 940225 NATIONAL GOLF BUYS TWO COURSES SANTA MONICA CALIF NATIONAL GOLF PROPERTIES INC BOUGHT THE SUMMITPOINTE GOLF COURSE IN MILPITAS CALIF AND THE LAKE WILDERNESS GOLF COURSE IN MAPLE VALLEY WASH IN A SINGLE TRANSACTION WITH A UNIT OF JAPAN'S SUMITOMO BANK LTD TERMS OF THE TRANSACTION WEREN'T DISCLOSED 9402250110 940225 INTERNATIONAL NORTHERN MEXICAN FARMERS MARCH IN SPIRIT OF CHIAPAS BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THOUSANDS OF PEASANT FARMERS STAGED DEMONSTRATIONS IN THE NORTHERN BORDER STATE OF CHIHUAHUA YESTERDAY SHOWING JUST HOW FAR THE SPIRIT OF REBELLION HAS SPREAD FROM MEXICO'S SOUTHERNMOST STATE OF CHIAPAS THE DEMONSTRATORS SAID THEY ARE ANGRY BECAUSE BANKS HAVE STARTED REPOSSESSING PROPERTY AND HAVE CUT OFF CREDIT TO FARMERS WHO LIKE THEIR COUNTERPARTS WORLDWIDE ARE SUFFERING FROM LOW PRICES IN AN ATTEMPT TO PRESSURE THE FEDERAL GOVERNMENT INTO FORCING THE BANKS TO RESUME LENDING THE DEMONSTRATORS OCCUPIED TWO BIG BANKS IN THE CAPITAL OF CHIHUAHUA KEEPING PEOPLE FROM ENTERING AND SHOUTING AT BANK OFFICERS THE DEMONSTRATORS SAID THEY PLAN FURTHER ACTIONS TODAY THE PROTESTERS LINKED THEIR ACTIONS PARTLY TO EVENTS IN CHIAPAS SHOWING JUST HOW MUCH THE NEGOTIATING TABLE IN THAT STATE HAS BECOME THE FOCUS FOR THOSE PUSHING FOR POLITICAL AND SOCIAL REFORM IN A CLOSED POLITICAL SYSTEM SUCH AS MEXICO'S IT IS RARE FOR REPRESENTATIVES OF THE GOVERNMENT TO SIT DOWN AND NEGOTIATE SO GROUPS AROUND THE COUNTRY HAVE BEEN RUSHING TO TAKE ADVANTAGE OF THE GOVERNMENT'S WILLINGNESS TO BARGAIN WITH THE CHIAPAS REBELS SOME GROUPS HAVE EVEN ASKED CHIAPAS BISHOP SAMUEL RUIZ A MEDIATOR IN THE PEACE TALKS TO NEGOTIATE ON THEIR BEHALF WITH THE GOVERNMENT MEANWHILE IN SAN CRISTOBAL DE LAS CASAS CHIAPAS MEXICAN GOVERNMENT PEACE ENVOY MANUEL CAMACHO SOLIS RAISED HOPES WHEN HE SAID THE PROBLEMS IN CHIAPAS CALLED FOR INCREASED DEMOCRACY SEEMING TO SUGGEST HE IS PREPARED TO OFFER REBELS MORE THAN LOCAL PALLIATIVES IT'S NOT CLEAR JUST HOW BROAD A MANDATE MR CAMACHO HAS BEEN GIVEN BY PRESIDENT CARLOS SALINAS MR CAMACHO PASSED OVER AS THE RULING PARTY'S CHOICE FOR THE PRESIDENTIAL ELECTIONS THIS AUGUST MAY BE PURSUING HIS OWN LIBERAL POLITICAL AGENDA THERE ARE STILL MANY HARDLINERS IN SENIOR GOVERNMENT POSITIONS WHO WILL RESIST ANY ATTEMPTS TO OPEN THE POLITICAL SYSTEM OR TO LET A SMALL GROUP OF REBELS INFLUENCE GOVERNMENTAL DECISIONS 9402250109 940225 WHO'S NEWS HAGGAR CORP HAGGAR CORP DALLAS J M HAGGAR III 42YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF MEN'S APPAREL WAS NAMED TO THE ADDED POST OF CHAIRMAN MR HAGGAR SUCCEEDS J M HAGGAR JR 69 WHO WILL CONTINUE AS A DIRECTOR ADDITIONALLY RAE F EVANS 45 WAS NAMED TO THE BOARD SUCCEEDING KEVIN CHISHOLM A DALLAS ACCOUNTANT MRS EVANS IS VICE PRESIDENT NATIONAL AFFAIRS OF HALLMARK CARDS INC 9402250108 940225 WHO'S NEWS CMS ENERGY OFFICIAL RESIGNS AFTER CRITICISM OF NUCLEAR FACILITY JACKSON MICH CMS ENERGY CORP'S CONSUMERS POWER CO UNIT SAID IT ACCEPTED THE RESIGNATION OF A TOP NUCLEARPOWER EXECUTIVE AND PLANNED TO REASSIGN A NUCLEAR MANAGER TO ANOTHER POST BECAUSE OF POOR PERFORMANCE AT ITS PALISADES NUCLEAR POWER PLANT IN SOUTH HAVEN MICH THE MOVE FOLLOWS A RECENT VISIT BY IVAN SELIN US NUCLEAR REGULATORY COMMISSION CHAIRMAN WHO WAS VERY CRITICAL OF PALISADES' PERFORMANCE THE NRC FINED CONSUMERS POWER TWICE OVER THE PAST SIX MONTHS BECAUSE OF REFUELING PROBLEMS AND IMPROPER THERMAL SETTINGS HE HAD VERY HARSH WORDS FOR THE PLANT A SPOKESMAN FOR JACKSON MICHBASED CONSUMERS POWER SAID THE NRC WASN'T HAPPY WITH THE PLANT AND NEITHER WERE WE DAVID HOFFMAN 49 YEARS OLD VICE PRESIDENT FOR CONSUMER POWERS NUCLEAR OPERATIONS SINCE 1988 RESIGNED EARLIER THIS WEEK IT WAS A MUTUAL DECISION DIRECTLY RELATED TO PALISADES' PERFORMANCE THE CONSUMERS POWER SPOKESMAN SAID GERALD SLADE 50 YEARS OLD HAD SERVED AS PALISADES GENERAL MANAGER FOR THE PAST FIVE YEARS HIS NEW ASSIGNMENT HASN'T BEEN DETERMINED TOM PALMISANO 43 PALISADES OPERATIONS MANAGER HAS BEEN NAMED ACTING MANAGER 9402250107 940225 MONEYMARKET FUNDS POSTED JUMP IN ASSETS WASHINGTON MONEYMARKET MUTUALFUND ASSETS JUMPED 275 BILLION TO 58795 BILLION FROM A REVISED 5852 BILLION FOR THE WEEK ENDED WEDNESDAY FEB 23 THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 654 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 204 BILLION TO 40437 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS ROSE BY 116 BILLION TO 313 BILLION ASSETS OF 248 RETAIL TAXEXEMPT FUNDS ROSE BY 876 MILLION TO 9137 BILLION ASSETS OF THE 284 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 7216 MILLION TO 18359 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 230 TAXABLE MONEYMARKET FUNDS ROSE BY 4715 MILLION TO 16048 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 2501 MILLION TO 2311 BILLION 9402250106 940225 U S WEST PLANS TO ISSUE UP TO 56 MILLION SHARES FOR LEGAL SETTLEMENT ENGLEWOOD COLO U S WEST INC SAID IT EXPECTS TO ISSUE AS MANY AS 56 MILLION COMMON SHARES AS PART OF A SETTLEMENT OF A SHAREHOLDER CLASSACTION LAWSUIT THE REGIONAL BELL TELEPHONE COMPANY SAID THE SHARES WILL BE ISSUED DIRECTLY TO CLASS MEMBERS AT 38375 A SHARE THE LAWSUIT WAS FILED IN DECEMBER 1991 SOON AFTER THE COMPANY ANNOUNCED A 590 MILLION RESTRUCTURING CHARGE AGAINST ITS EARNINGS THE CHARGE COVERED DOWNSIZING THE WRITEOFF OF INTANGIBLES AND THE COMPANY'S EXIT FROM THE COMMERCIAL REALESTATE BUSINESS U S WEST DENIED THE SUIT'S ALLEGATIONS THAT IT MISLED INVESTORS BY NOT DISCLOSING THE INFORMATION IN A TIMELY FASHION AND SAID IT AGREED TO SETTLE THE CASE TO AVOID COSTLY TIMECONSUMING LITIGATION THE SETTLEMENT WHICH WAS APPROVED BY THE US DISTRICT COURT IN DENVER LAST NOVEMBER OFFERED ELIGIBLE CLASS MEMBERS THE RIGHT TO PURCHASE SHARES OF U S WEST'S STOCK AT A 3 DISCOUNT AND WITHOUT ANY BROKERAGE FEES BASED ON THE DOLLAR AMOUNTS TENDERED BY TUESDAY THE COMPANY ESTIMATED THAT 56 MILLION IS THE MAXIMUM NUMBER OF SHARES THAT CAN BE ISSUED 9402250105 940225 JURY ORDERS FORD TO PAY 105 MILLION DAMAGES TO MINORITY DEALERS HAYNEVILLE ALA A JURY RULED THAT FORD MOTOR CO MUST PAY 105 MILLION IN DAMAGES FOR FAILING TO PROVIDE ENOUGH SUPPORT TO A STRUGGLING CAR DEALERSHIP OPERATING UNDER AN INCENTIVE PROGRAM FOR MINORITYOWNED BUSINESSES THE DEALERSHIP LATER FAILED IN 1991 AFTER ATTEMPTING TO REORGANIZE UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE FORD BASED IN DEARBORN MICH SAID IT PLANS TO APPEAL THE VERDICT DELIVERED WEDNESDAY BY A LOWNDES COUNTY ALA JURY SAM FOSTER WHO IS BLACK AND DEEWITT SPERAU WHO IS WHITE WERE AWARDED A FORD DEALERSHIP UNDER THE INCENTIVE PROGRAM IN 1988 THEY CLAIMED THEY WERE FORCED INTO BANKRUPTCY IN 1991 DUE TO A LACK OF SUPPORT FROM FORD FORD HOWEVER ARGUED THAT THE RIVER CITY FORD DEALERSHIP IN SELMA ALA FAILED BECAUSE THE PARTNERS SPENT THE BUSINESS'S MONEY ON PERSONAL EXPENSES THE PARTNERS DENIED ANY WASTEFUL SPENDING IN ADDITION TO THE JUDGMENT AGAINST FORD THE JURY ORDERED MR FOSTER AND MS SPERAU TO PAY FORD MOTOR CREDIT 635000 TO COMPENSATE FOR A LOAN USED TO START THE BUSINESS THE PARTNERS COULD NOT BE REACHED FOR COMMENT 9402250104 940225 BRITISH GAS POSTS 4THQUARTER LOSS TO CUT 25000 JOBS BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH GAS PLC REPORTED A 1993 FOURTHQUARTER LOSS OF 694 MILLION 103 BILLION AFTER A 165 BILLION RESTRUCTURING CHARGE AND SAID IT WILL CUT 25000 JOBS OVER THE NEXT FEW YEARS OR 5000 MORE THAN PREVIOUSLY PLANNED THE COMPANY SAID TIGHTER MARGINS STEMMING FROM INCREASED COMPETITION AND RATE REGULATION RESULTED IN DOWNWARD PRESSURE ON PROFITS WHICH IS EXPECTED TO CONTINUE THIS YEAR A YEAR EARLIER BRITISH GAS POSTED A PROFIT OF 234 MILLION CHAIRMAN RICHARD GIORDAN EXPLAINING THE PLAN TO REDUCE STAFFING BY MORE THAN A THIRD SAID WE ARE SEIZING THIS OPPORTUNITY TO REDUCE RADICALLY OUR COST OF DOING BUSINESS SO THAT WE CAN SUCCEED IN THE MORE COMPETITIVE GAS MARKETS OF THE FUTURE THE COMPANY CURRENTLY HAS ABOUT 70000 EMPLOYEES BRITISH GAS'S SHARES CLOSED AT 328 PENCE 485 DOWN 12 PENCE THE RESTRUCTURING CHARGE WHICH WAS HIGHER THAN ANALYSTS EXPECTED WILL COVER THE COSTS OF THE JOB REDUCTIONS AND THE COMPANY'S PLANS TO REORGANIZE ITS DOMESTIC GAS BUSINESS INTO FIVE SEPARATE BUSINESSES THE REORGANIZATION STEMS IN PART FROM A BRITISH REGULATORS' DECISION TO END THE COMPANY'S MONOPOLY ON SALES TO DOMESTIC CUSTOMERS IN 1996 BRITISH GAS AGREED WITH REGULATORS LAST YEAR TO LIMIT RISES IN THE PRICES IT CHARGES ITS DOMESTIC AND SMALLER BUSINESS CUSTOMERS TO THE ANNUAL RATE OF RETAIL PRICE INFLATION LESS FIVE PERCENTAGE POINTS FROM APRIL HOWEVER THIS WILL BE REDUCED TO THE INFLATION RATE LESS FOUR PERCENTAGE POINTS IN AN ATTEMPT TO COMPENSATE BRITISH GAS FOR THE LOSS OF INCOME FROM INCREASED COMPETITION THE COMPANY SAID EASING THE PRICE FORMULA BRINGS A WELCOME MEASURE OF RELIEF BUT ADDED THAT MARGINS WILL REMAIN UNDER PRESSURE IN THE FUTURE THE COMPANY'S FOURTHQUARTER PROFIT BEFORE EXCEPTIONAL RESTRUCTURING CHARGE AND A 33 MILLION ENVIRONMENTAL CHARGE DROPPED MARGINALLY TO 489 MILLION FROM 490 MILLION IN THE 1992 FOURTH QUARTER REVENUE DECLINED TO 330 BILLION FROM 333 BILLION FOR ALL OF 1993 THE COMPANY REPORTED A 285 MILLION NET INCOME COMPARED WITH 681 MILLION IN 1992 PROFIT BEFORE THE CHARGES DROPPED TO 898 MILLION FROM 937 MILLION THE YEAR BEFORE WHILE REVENUE ROSE TO 1039 BILLION FROM 1025 BILLION ITS TOTAL DIVIDEND PAID LAST YEAR WAS INCREASED TO 145 PENCE A SHARE FROM 142 PENCE IN 1992 9402250103 940225 THURSDAY'S MARKETS BONDS FAILED TAKEOVER STAGGER STOCKS BY STEVEN E LEVINGSTON AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL A DOUBLE WHAMMY OF PLUNGING BOND PRICES AND THE COLLAPSE OF THE BELL ATLANTIC ACQUISITION OF TELECOMMUNICATIONS KNOCKED STOCK PRICES INTO A TAILSPIN THE DOLLAR FELL STOCK PRICES PLUNGED AS THE TREASURY'S BENCHMARK 30YEAR BOND TUMBLED MORE THAN A POINT OR MORE THAN 10 FOR EACH 1000 FACE AMOUNT THE YIELD SOARED TO 673 ITS HIGHEST LEVEL SINCE JUNE CABLE TELEVISION AND COMMUNICATIONS STOCKS WERE BATTERED BY FALLOUT FROM THE BREAKDOWN IN BELL ATLANTIC'S TAKEOVER BID FOR TELECOMMUNICATIONS UTILITY STOCKS ALSO WERE HAMMERED WITH THE DOW JONES UTILITY AVERAGE SINKING 330 TO 20729 TRANSPORTATION STOCKS TUMBLED SENDING THE DOW JONES TRANSPORTATION AVERAGE DOWN 3553 TO 176320 THE NASDAQ COMPOSITE SUFFERED STEEP LOSSES BECAUSE IT CONTAINS MANY COMMUNICATIONSRELATED STOCKS IT'S INCREDIBLE HOW MUCH THE MOOD HAS SHIFTED ON WALL STREET SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP IT HAS GONE FROM OPTIMISM TO GUARDED OPTIMISM AND NOW APPREHENSION WE'RE ON THE BORDER OF DESPAIR MR JOHNSON SAID THAT WHILE THE TAKEOVER'S COLLAPSE WEIGHED HEAVILY ON THE STOCK MARKET THE CHIEF CULPRIT REMAINS THE SLUMP IN BOND PRICES THE BOND MARKET'S TROUBLES YESTERDAY BEGAN WITH THE RELEASE OF STRONGERTHANEXPECTED DATA ON DURABLEGOODS ORDERS FOR JANUARY THAT FURTHER EMPHASIZED THE STRENGTH OF THE ECONOMY AND STOKED FEARS OF INFLATION MOREOVER IN CONGRESSIONAL TESTIMONY TUESDAY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN HAD IDENTIFIED DURABLEGOODS ORDERS AS A KEY INDICATOR IN DETERMINING MONETARY POLICY A CLOSER LOOK AT THE DURABLEGOODS DATA HOWEVER SHOWED THAT THE BULK OF THE INCREASE WAS DUE TO MOTORVEHICLE AND AIRCRAFT ORDERS BUT THAT DISCOVERY FAILED TO EASE THE BOND MARKET'S WORRIES NOR DID A SOLID AUCTION OF 11 BILLION IN FIVEYEAR NOTES NOT EVEN SOOTHING WORDS ABOUT INFLATION FROM MR GREENSPAN COULD CALM BOND TRADERS' FEARS HE SAID HE DIDN'T SEE A BROAD BUILDUP OF INFLATIONARY PRESSURES BOND PRICES RECOVERED A BIT AFTER HIS REMARKS BUT THEN RESUMED THEIR DESCENT WHAT'S SO TROUBLING IS THAT ALTHOUGH THERE IS SOME RESPONSE TO POSITIVE NEWS IT'S VERY CLEAR THE RESPONSE IS FLEETING MR JOHNSON SAID THE BOND MARKET IS NOT RESPONDING TO GOOD NEWS OR ATTEMPTS TO HELP IT THAT INCREASES THE APPREHENSION IN BOTH THE BOND AND STOCK MARKETS SOME TRADERS LINKED THE LONG BOND'S WEAKNESS PARTLY TO BOND MUTUAL FUNDS SHORTENING THE MATURITIES OF THEIR HOLDINGS SOME BOND TRADERS SAID THEY SAW HEAVY SELLING OF LONGERTERM BONDS BY MUTUAL FUNDS WHILE MUTUALFUND COMPANIES SAY THEY HAVEN'T HAD TO SELL ANY BONDS TO MEET REDEMPTIONS THEY CONCEDED THAT MONEY INFLOWS INTO BOND FUNDS HAVE DRIED UP DREYFUS FRANKLIN RESOURCES T ROWE PRICE AND VANGUARD SAID THEY'VE HAD SLIGHT OUTFLOWS FROM BOND FUNDS THIS WEEK AS INVESTORS SWITCHED INTO MONEYMARKET FUNDS SOME INVESTORS BELIEVE A GOOD BUYING OPPORTUNITY NOW EXISTS IN THE BOND MARKET MY TRIGGER FINGER IS GETTING ITCHY TO BUY SAID RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH BUT IT'S A VERY EMOTIONAL MARKET AND IT'S DIFFICULT FOR ANYONE TO ESTABLISH VALUE IN THIS KIND OF ENVIRONMENT OVERSEAS MARKETS CONTRIBUTED TO WALL STREET'S GLOOM EUROPEAN STOCK AND BOND MARKETS TUMBLED AS INVESTORS FEARED HIGHER US INTEREST RATES AND GROWING POLITICAL TENSIONS IN RUSSIA TRADERS SAID PANIC SELLING BY US HEDGE FUNDS ADDED TO THE ROUT IN EUROPE'S BOND MARKETS THE BRITISH STOCK MARKET SLID 22 FRANCE WAS DOWN 19 GERMANY 18 AND SWITZERLAND 23 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 019 TO 11563 IN MAJOR MARKET ACTION STOCK PRICES TUMBLED VOLUME TOTALED 3416 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1795 ISSUES FELL AND 442 ROSE THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17172 MARKS AND 10495 YEN COMPARED WITH 17284 MARKS AND 10575 YEN WEDNESDAY 9402250102 940225 LABOR TEAMSTER PRESIDENT FACES FIGHTS INSIDE AND OUTSIDE HIS UNION BY KEVIN G SALWEN AND ROBERT L ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL GETTING ARRESTED IS THE EASY PART OF TEAMSTERS' PRESIDENT RON CAREY'S JOB THE HARD PART WILL BE GETTING MEMBERS OF HIS UNION TO APPROVE A 25 DUES INCREASE BALLOTS WERE SENT TO THE MEMBERSHIP THIS WEEK AND REJECTION COULD MEAN THE BEGINNING OF THE END OF MR CAREY'S ROCKY TWOYEAR TENURE IN A PREARRANGED PUBLICITY STUNT MR CAREY 57 YEARS OLD PICKETED AND TRESPASSED AT AN ENTENMANN'S BAKERY PLANT IN MIAMI ON WEDNESDAY AND AS TELEVISION CAMERAS ROLLED WAS TAKEN AWAY IN A POLICE CAR THE CROWD OF UNIONISTS CHEERED IT WAS ANOTHER IN A STRING OF PUBLICRELATIONS COUPS FOR THE TOUGHTALKING NEW YORKER A SIGNAL THAT HE IS WILLING TO GO TO THE MAT FOR STRIKING RANKANDFILERS THIS TIME AT DIAMOND WALNUT GROWERS INC WHICH SELLS NUTS TO ENTENMANN'S BUT WITH THE PROPOSED DUES INCREASE THE SUCCESSOR TO JIMMY HOFFA AND JACKIE PRESSER FACES REAL DANGER IN AN UNPRECEDENTED MOVE MR CAREY WENT DIRECTLY TO THE MEMBERS TO ASK FOR THE INCREASE RATHER THAN CALL A CONVENTION OF LOCAL AND REGIONAL LEADERS WITH BALLOTS DUE MARCH 21 THE NEXT FEW WEEKS WILL BE THE MOST CRUCIAL SINCE HE WAS ELECTED BY THE RANKANDFILE IN 1991 WITHOUT APPROVAL MR CAREY SAYS THE UNION'S STRIKE FUND WILL BE EMPTY BY JUNE AND ITS GENERAL FUND WILL RUN OUT OF MONEY SOME TIME NEXT YEAR BUT BY DECLINING TO CALL A CONVENTION MR CAREY HAS INCURRED THE WRATH OF OPPONENTS ALREADY SIMMERING OVER WHAT THEY SEE AS HIS MONARCHIC STYLE IT'S A WAR CONCEDES MR CAREY WHO IMPRESSES EVEN OPPONENTS WITH HIS TENACITY AND STAMINA BUT HE ADDS I ENJOY A GOOD FIGHT MR CAREY'S ENEMIES SAY HE IS A PARANOID POWERGRABBER SHORTLY AFTER COMING INTO OFFICE HE MADE IT ABUNDANTLY CLEAR IT WOULD BE THE RONNIE SHOW AND NOTHING ELSE SAYS GENE GIACUMBO AN INTERNATIONAL VICE PRESIDENT AND FORMER ALLY THE LAST CONVENTION JUST BEFORE MR CAREY'S ELECTION IN 1991 STARTED MANY FINANCIAL PROBLEMS DELEGATES VOTED TO BOOST STRIKE BENEFITS FROM 55 TO 200 A WEEK WITHOUT ESTABLISHING A FUNDING MECHANISM NOW MR CAREY WANTS THE BIG INCREASE TO BAIL OUT THE STRIKE FUND AND HELP PAY FOR SOME OF HIS AMBITIOUS PROGRAMS TO ORGANIZE WORKERS AND CARRY ON CAMPAIGNS AGAINST CORPORATE EMPLOYERS MOST OPPONENTS FAVOR A MORE MODEST ASSESSMENT ABOUT ONETHIRD OF MR CAREY'S PROPOSED INCREASE AVERAGE DUES ARE NOW ABOUT 30 PER MONTH CRITICS SAY HIS SPENDING IS OUT OF CONTROL WITH THE UNION'S GENERAL FUND DWINDLING FROM 150 MILLION IN 1991 TO ABOUT 50 MILLION NOW THE PROPOSED DUES INCREASE IS A MOVE TO HAVE MORE MONEY GOING TO THE TOP SAYS RV DURHAM A NORTH CAROLINA LOCAL LEADER WHO PLACED SECOND TO MR CAREY IN THE 1991 RACE FOR PRESIDENT REJECTION COULD FORCE MR CAREY TO CUT STAFF AND PROGRAMS OR CALL A CONVENTION WHERE OPPONENTS COULD TRY TO LIMIT HIS POWER IT COULD ALSO BE A SETBACK FOR ORGANIZED LABOR BECAUSE MR CAREY HAS BEEN A FORCEFUL VOICE ON MATTERS SUCH AS INTERNATIONAL TRADE AND LABORLAW REFORM THE TEAMSTERS' PRESIDENT SAYS HE DECIDED NOT TO CALL A CONVENTION BECAUSE HE FEARED OPPONENTS WOULD TURN IT INTO A CIRCUS THAT WOULD DIVERT ATTENTION FROM THE FINANCIAL SHORTFALL OPPONENTS SAY HE FEARED DEBATE THEY ACCUSE MR CAREY OF SOME OF HIS PREDECESSORS' SINS AN AUTOCRATIC STYLE AND EVEN ALLEGED PAST TIES WITH ORGANIZED CRIME IT'S GARBAGE AND IT'S SMUT MR CAREY SAYS NOTING THAT GOVERNMENT OVERSEERS OF THE UNION HAVE SAID THEY HAVE SEEN NO EVIDENCE OF SUCH WRONGDOING AMONG THOSE WAITING TO POUNCE SHOULD MR CAREY STUMBLE IS MR HOFFA'S SON JAMES WHO WORKED THE HALLS OF A HUGE AFLCIO UNION MEETING NEAR MIAMI THIS WEEK GLADHANDING ORGANIZED LABOR BIGWIGS AND GAUGING OTHER TEAMSTERS' SUPPORT FOR A HOFFA RUN AT THE UNION'S TOP SLOT NEXT YEAR MR CAREY WHO WAS ELECTED ON A REFORM SLATE IN THE TEAMSTERS' FIRST MEMBERSHIP ELECTION EVER SAYS HE TRIED TO OFFER AN OLIVE BRANCH TO OPPONENTS AFTER HE WON THE THREEWAY ELECTION AS PRESIDENT NOW I'VE CHANGED MY OPINION ABOUT THAT HE SAYS IT WAS MISUNDERSTOOD AS A SIGN OF WEAKNESS HE NOW STRIKES BACK WHEN PEOPLE ATTACK AFTER THE FOUR CHAIRMEN OF THE TEAMSTERS' AREA CONFERENCES WROTE A LETTER OPPOSING A DUES INCREASE WITHOUT A CONVENTION MR CAREY FIRED BACK IN A LETTER APPARENTLY YOU AND YOUR ALLIES IN TOP CORPORATE MANAGEMENT DON'T WANT MEMBERS TO HAVE STABLE SECURE FUNDING FOR THEIR 200 PER WEEK STRIKE BENEFITS AIDES CALL MR CAREY A CHARISMATIC LEADER TRYING TO PUT DRIVE AND PURPOSE BEHIND A DIVERSE 14 MILLIONMEMBER UNION THAT HAS ITS BASE IN WAREHOUSE TRUCKING PACKAGEDELIVERY AND CANNING INDUSTRIES BUT ALSO INCLUDES PUBLIC EMPLOYEES IN NEW YORK AND ELSEWHERE HOSPITAL WORKERS IN RHODE ISLAND AND SALT MINERS IN OHIO AMONG OTHER VICTORIES HE PERSUADED FLIGHT ATTENDANTS AT NORTHWEST AIRLINES NOT TO LEAVE THE UNION AND THEN HELPED NEGOTIATE A CONTRACT THAT GAVE THEM AN OWNERSHIP STAKE IN RETURN FOR CONCESSIONS HIS WELLPLANNED ARREST SCHEME SO ENTHRALLED OTHER MEMBERS OF THE AFLCIO TO WHICH THE TEAMSTERS BELONG THAT 10 EXECUTIVE COUNCIL MEMBERS JOINED HIM IN THE PICKET LINE AT ENTENMANN'S EVEN AFLCIO CHIEF LANE KIRKLAND GOT ARRESTED FOR THE FIRST TIME IN FOUR YEARS MR CAREY IS ALSO LINING UP A 50 MILLION LOAN FROM THE AFLCIO TO BACK ANY STRIKE THREATS IN CURRENT NEGOTIATIONS FOR A NATIONAL FREIGHT AGREEMENT WITH TRUCKING COMPANIES OPPONENTS CRITICIZE MANY OF HIS CURRENT BATTLES AS QUIXOTIC PUBLICITY CAMPAIGNS THE RECENT ONEDAY STRIKE AGAINST UNITED PARCEL SERVICE OF AMERICA INC FOR INCREASING PACKAGEWEIGHT LIMITS WITHOUT WHAT THE UNION SAYS ARE ADEQUATE SAFETY PROTECTIONS WAS ILLCONCEIVED THEY SAY MANY UPS MEMBERS STAYED ON THEIR JOBS AFTER BEING URGED BY THEIR LOCAL LEADERS TO DEFY THE INTERNATIONAL BUT THE WALKOUT WAS EXTENSIVE ENOUGH TO DISRUPT OPERATIONS AND UPS LOST BUSINESS TO NONUNION RIVALS SUCH AS FEDERAL EXPRESS CORP UPS RESPONDED WITH A LAWSUIT AGAINST THE INTERNATIONAL MR CAREY'S BATTLES LEAVE HIM LITTLE TIME FOR HIS FAMILY HE SHUNS VACATIONS SAYING HE LIKES TO RELAX BY SWIMMING OR WATCHING PUBLIC TELEVISION PARTICULARLY ANIMAL SHOWS COME MONDAY HE'LL BE BACK AT THE INTERNATIONAL OFFICE IN WASHINGTONOR ON THE ROAD TO RALLY MEMBERS I'M CHARGING AHEAD HE SAYS 9402250101 940225 LEISURE & ARTS IT'S NOT JUST PIZZA IT'S AMORE BY FREDERIKA RANDALL VIAREGGIO ITALY THE SMELL OF RUGHETTA WAS IN THE AIR WHEN THE GREAT AND THE NEARGREAT GATHERED AT THIS TUSCAN RESORT A FEW WEEKS AGO FOR A MUSCULAR BAKEOFF CALLED THE WORLD PIZZA CHAMPIONSHIP IT WAS A TEST OF DEXTERITY AND ACROBATICS OF STYLE AND CULINARY SKILLS WHERE SINCERE AMBITION MINGLED WITH HYPE AND GNAWING WORRY ABOUT DOWNTURN IN THE TRADE MONDO PIZZA VIEWED UP CLOSE PARTED CRISPLY INTO TWO TRIBES THE NECKTIES CARRIED BRIEFCASES AND TALKED MARKETS INSIDE THE HALL OF THE GRAN CAFFE MARGHERITA A MAJOLICADOMED WATERFRONT COFFEEHOUSE THE TSHIRTS HUSTLED UP THEIR BUBBLING DISKS IN THE GARDEN OUT BACK LOADING THEM ON CREATIVE SETS FOR PRESENTATION TO THE TASTERS EIGHT OF THE 120 TSHIRTS AND ABOUT THE SAME PERCENTAGE OF THE NECKTIES WERE WOMEN TIMES HAVE CHANGED IN PIZZALAND BUT NOT TOO MUCH RUGHETTA THAT'S ARUGULA TO YOU THE PEPPERY SALAD GREEN TRICKLED DOWN FROM NOUVELLE GARNISH TO PIZZA ALONG WITH SHAVED PARMESAN AS THE NEAPOLITAN PIE MIGRATED UP THE PENINSULA SHEDDING MOST OF ITS CLASSIC FLAVORS IN THE 1980S A GLANCE AT THIS YEAR'S ENTRIES AT VIAREGGIO CONFIRMED THAT TRADITIONAL TOMATOES OREGANO AND ANCHOVIES WERE OUT RUGHETTA RADICCHIO TRUFFLES AND FUNGHI PORCINI NOT TO MENTION DELUXE FOREIGN TOPPINGS SUCH AS SALMON CRAB AND CAVIAR WERE IN SO IMPROBABLY WERE THE SALADBAR VEGETABLES CARROTS CORN BROCCOLI CAULIFLOWER AND SPROUTS BOTH BRUSSELS AND BEAN THOSE BEAN SPROUTS WERE INTRODUCED BY YOUNG KYUNG HAE A SELFPOSSESSED YOUNG WOMAN FROM PARMA WHOSE VISUALLY PLEASING PIZZA WAS A STUDY IN PINK WITH A SPRINKLING OF TINY SHRIMP AND SPROUTS IN SALSA ROSA KETCHUP PLUS MAYO WEARING A KOREAN GOWN OF MAUVE VOILE OVER HER TSHIRT SHE FLOATED UP TO THE JURY TABLE ON WAVES OF CROWD APPRECIATION ALTHOUGH SOME ADMIRERS CADDISHLY CONFESSED LATER THAT THEY DIDN'T THINK THE SPROUTS REALLY WORKED THEY DIDN'T REALLY BUT AS MS YOUNG CORRECTLY PERCEIVED MAKING THE DISK LOOK GOOD WAS HALF THE GAME SOME AIMED FOR EFFECT WITH ELABORATE DISPLAY SETS A BASKET OF GLAZED BREAD FLOWERS SO PERFECT THEY COULD HAVE BEEN BOTANIST'S MODELS A BUTTER SCULPTURE OF A BLOWSY BLOND VENUS LOUNGING UNDER MOUNT VESUVIUS IT TOOK GRAZIANO BERTUZZO OF THE PIZZERIA BRIAN IN ERACLEA NEAR VENICE A MONTH TO MAKE JURASSIC PIZZA HIS FOURFOOTHIGH BREAD SCULPTURE WORKED WITH A BLOWTORCH TO PRODUCE MARVELOUS HORNY BLISTERED SKIN HIS DINOSAURS HAD A GLOSSY REPTILIAN FINISH AND THE VEGETATION A CONVINCING PREHISTORIC LOOK DOUGH IS SENSITIVE IT'S LIKE A WOMAN YOU DEVELOP A RELATIONSHIP WHEN YOU'RE WORKING IT OK YOU CAN CALL IT LOVE SAID IBRAHIM SAMER 22 YEARS OLD WHO WORKS IN A HIGHVOLUME BYTHESLICE PIZZERIA NEAR ROME'S MAIN RAIL STATION THE SOFTSPOKEN DAMASCUSBORN MR SAMER BEARING A TRAY OF ZUCCHINIANDMOZZARELLA PIZZA IS AN ARDENT NEWCOMER TO THE OLD SCHOOL THAT LINKS MALE PIZZA PROWESS AND AMORE THAT SPECIAL RELATIONSHIP BETWEEN A MAN AND HIS PIZZA WAS PROBABLY BORN SOMETIME IN THE LATE 19TH CENTURY IN NAPLES WHEN PIZZAMAKERS BEGAN TO DEVELOP THE ATHLETIC SIDE OF THEIR ART AND SHOW OFF THEIR TOSSING AND SPINNING MUSIC TENDS TO GO WITH IT LA DONNA E MOBILE TRILLED THE GRAN CAFFE MARGHERITA PIANO AS A PUMPKINANDSAUSAGE PIZZA TOPPED WITH GRANA PADANA CHEESE MADE ITS APPEARANCE THE PLATTER WREATHED WITH THICK DECORATIVE COILS OF RAW SAUSAGE LINKS WHILE GIANCARLO SINICO OF THE MOCAMBO PIZZERIA IN GOITO NEAR MANTOVA SLICED UP HIS ENTRY FOR THE JURY THE PIANIST SEGUED NEATLY INTO ALL OF ME MR SINICO GOT FIRST PRIZE FOR WHOLE PIZZA AT THE END OF THE DAY WHILE FRANCESCO DILILLO OF PIZZA E PIZZA IN BOLOGNA WAS TOPS FOR BYTHESLICE LATER THOSE MELLOW NOTES GAVE WAY TO ROCK AND DISCO DURING THE FREESTYLE PIZZAHANDLING COMPETITION FOR WHICH THE TSHIRTS AVERAGE AGE 25 HAIR LONG TO VERY LONG BROUGHT THEIR OWN TAPES IN THE FREESTYLE THE CONTESTANT FLATTENS A BALL OF DOUGH AND THEN TOSSES AND TWIRLS THE EVERWIDENING DISK IN A BRIEF THRILLING PAS DE DEUX I GET LONELY THE VOICE OF FREDDY MERCURY CHANTED FROM THE TAPE DECK AS LAST YEAR'S VICTOR FRANCO GRITTANI BEGAN TO BOUNCE ACROSS THE FLOOR LIVING ON MY OWN OLDER THAN MANY AT 37 THE VETERAN RAVENNABASED MR GRITTANI HAD A VELVETY EFFORTLESS WAY OF SPINNING THE DOUGH ON HIS THUMB WHILE KEEPING TIME WITH HIS HIPS HE ONLY WORKS WITH REAL PIZZA DOUGH REFUSING THE SYNTHETIC GOOP USED FOR SIMILAR CONTESTS IN THE US SURE A RUBBER PIZZA NEVER SPLITS OR GETS HOLES IT DOESN'T MAKE A MESS WITH FLOUR YOU CAN PERFORM OVER A HOTEL CARPET ALL IT LACKS IS CLASS HE SENTENCED THIS YEAR MR GRITTANI YIELDED HIS TITLE TO THE VERSATILE MR BERTUZZO WHO DID AN ANTIC TWOPIZZA NUMBER TO I FEEL GOOD THE SERIOUSFACED NECKTIE TRIBE DIDN'T FEEL SO GOOD HOWEVER CONTEMPLATING MARKET TRENDS LIKE THOSE OUTLINED BY CONSULTANT EMANUELE CECCARELLI WHO SAID THE 30 BILLION ITALIAN PIZZA BUSINESS IS ON THE CUSP BETWEEN MATURE INDUSTRY AND DECLINE PHASE SOMETHING HAS TO BE DONE EVERYONE AGREED TO OPEN UP NEW SPACES TO RESCUE EASTERN EUROPE FROM THE DOMINION OF PIZZA HUT TOUGH EUROPEAN UNION RULES THAT CREATE A STANDARD FOR REAL NEAPOLITAN PIZZA ARE THE BEST WAY TO PROTECT AGAINST CRASS NORTH AMERICAN IMITATIONS ARGUED MR CECCARELLI MAYBE BUT HEY HOW ABOUT APPLYING THAT CLASSICAL RIGOR AT HOME FIRST THERE WERE IN FACT SOME HINTS THAT THIS TRADE DIZZY WITH UPSCALE NORTHERN SEASONINGS MIGHT BE ABOUT TO EMBARK ON A NEW QUEST FOR ROOTS MR GRITTANI THE PIZZA DANCER DECORATED HIS ENTRY WITH SALMON AND RADICCHIO THIS YEAR BUT FREELY ADMITTED THOSE MIGHT BE FLASHINTHEPAN FLAVORS HE ISN'T WORRIED SALMON CAVIAR THEY MAY PASS AWAY HE SAID BUT NOT A PIECE OF BREAD BAKED WITH OIL AND TOMATOES ON IT THERE WILL ALWAYS BE PIZZA MS RANDALL IS A WRITER IN ROME 9402250100 940225 NEW GEAR MAY EASE PORTABLEPC LINKS TO EUROPEAN CELLULARPHONE NETWORK BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON PORTABLE COMPUTERS AROUND EUROPE MAY START MAKING A LOT MORE CELLULAR PHONE CALLS THIS SPRING NEXT MONTH AT CEBIT THE ANNUAL EUROPEAN COMPUTER SHOW IN HANOVER GERMANY A WAVE OF NEW PRODUCTS WILL GO ON SALE TO LET NOTEBOOK AND LAPTOP COMPUTERS TALK OVER THE NEW PANEUROPEAN GSM CELLULARPHONE NETWORK FINLAND'S OY NOKIA AND SIEMENS AG AND DR NEUHAUS MIKROELEKTRONIK GMBH OF GERMANY ARE AMONG SEVERAL COMMUNICATIONSEQUIPMENT COMPANIES NOW READYING PRODUCTS THE MAJOR PORTABLEPC MAKERS INCLUDING COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP ARE ALSO ON THE BANDWAGON IN THE BEGINNING AT LEAST THESE GADGETS WILL BE EXPENSIVE BUT IN TIME PRICES ARE EXPECTED TO FALL AND MAKE A TEMPTING MARKET TODAY GSM OR GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS HAS MORE THAN 12 MILLION SUBSCRIBERS IN EUROPE WITH 97 MILLION FORECAST FOR 1997 ACCORDING TO MARKETRESEARCH FIRM BIS STRATEGIC DECISIONS LTD IT'S THE BIGGEST ALLDIGITAL CELLULARPHONE SYSTEM IN THE WORLD TRANSMITTING IN THE BITS AND BYTES OF COMPUTERESE AND IS BEING ROLLED OUT GRADUALLY ACROSS WESTERN AND EASTERN EUROPE AND THE MIDDLE EAST SO THE SAME PHONES WILL WORK IN EVERY COUNTRY THOUGH GSM IS USED FOR VOICE CHATTER TODAY STARTING THIS YEAR GSM PHONECOMPANIES ARE UPGRADING THEIR SYSTEMS TO HANDLE DATA THIS MAY PROVIDE A HOT SELLING POINT FOR LAPTOP AND NOTEBOOK PCS ANYONE CAN BUY PORTABLEPC GEAR TO SEND WIRELESS MESSAGES BUT IT'S EXPENSIVE KLUNKY AND OFTEN UNRELIABLE NOT THE MOST PLEASANT THING TO DO SAYS PER LARSEN IBM'S MOBILECOMPUTING BRAND MANAGER IN EUROPE AS A RESULT MOST PORTABLE PCUSERS SAVE THEIR MESSAGES UNTIL THEY GET TO A NORMAL TELEPHONE AND THEN USE THEIR BUILTIN PC MODEMS TO DUMP THEM DOWN THE PHONE LINE BUT AS A DIGITAL SYSTEM GSM IS LESSPRONE TO GARBLING OR LOSING COMPUTER MESSAGES THAN CONVENTIONAL STATICLADEN ANALOG CELLULAR NETWORKS IT ISN'T THE ONLY TECHNOLOGY FOR THAT THE US CELLULAR INDUSTRY IS DEVELOPING OTHER DIGITAL DATA SYSTEMS BUT IT IS ONE OF THE FIRST IN THE FUTURE INDUSTRY GURUS PREDICT TINY PERSONAL DIGITAL ASSISTANTS LIKE APPLE COMPUTER INC'S UNSUCCESSFUL NEWTON MESSAGEPAD WILL BE CHATTERING OVER SUCH DIGITAL NETWORKS BUT FOR NOW MOST PC MAKERS ARE CONTENT TO CONTEMPLATE THE MONEY TO BE MADE MERELY IN SIMPLIFYING WIRELESS CHATTER FOR TODAY'S NOTEBOOK PCS FOR THE FIRST TIME THIS IS GOING TO BE A GOOD PART OF THE MARKET SAYS ANDREAS BARTH COMPAQ'S SENIOR VICE PRESIDENT IN EUROPE ALMOST ALL THE SYSTEMS ON DISPLAY IN HANOVER NEXT MONTH WILL USE THE SAME BASIC IDEA YOU START WITH A STANDARD GSM MOBILE PHONE AND A PORTABLE PC WITH A SOCALLED PCMCIA SLOT A HIGHTECH HOLE THAT MOST NEW NOTEBOOKS HAVE FOR PLUGGING IN ADDON EQUIPMENT THE ACRONYMN STANDS FOR PERSONAL COMPUTER MEMORY CARD INTERNATIONAL ASSOCIATION AN INDUSTRY GROUP BEHIND THE STANDARD THEN YOU BUY SOME HARDWARE TO CONNECT PHONE AND COMPUTER THAT'S A PCMCIA CARD A PIECE OF ELECTRONICS ABOUT THE SIZE OF A FAT CREDIT CARD THAT SLIDES INTO THE SIDE OF THE PC AND TRANSLATES THE COMPUTER MESSAGES INTO GSMSPEAK ALSO YOU NEED A CABLE TO CONNECT THE CARD TO THE PHONE AND SOME SOFTWARE TO CONTROL IT ALL IN THEORY IT SOUNDS FINE BUT WATCH OUT FOR STARTUP PROBLEMS THE FIRST GENERATION OF GSM VOICETELEPHONES FOR INSTANCE HAD BUGS THAT TOOK TIME TO RESOLVE NOTES GUNTER HEFNER HEAD OF SIEMENS'S MOBILEPHONE MARKETING WHILE THE NEW DATASYSTEMS WORK GREAT IN FIELD TESTS HE SAYS THEY HAVE YET TO PROVE THEMSELVES IN MASSMARKET USE AND ONLY A FEW GSM PHONE COMPANIES INCLUDING DEUTSCHE BUNDESPOST TELEKOM WILL HAVE THEIR NETWORKS READY THIS YEAR TO START ACCEPTING THE DATA CALLS MEANING EARLY NOTEBOOKCALLERS WILL BE MAROONED IN THEIR OWN COUNTRIES FOR A WHILE AS WITH ANY NEW PRODUCT WHETHER A CAR OR A WASHING MACHINE IN THE TRANSITION PERIOD YOU CAN EXPECT SOME SORT OF PROBLEM SIEMENS'S MR HEFNER SAYS ANOTHER PROBLEM STEEP PRICES IN BRITAIN NOKIA'S GSM KIT WILL SELL FOR ABOUT 550 81313 SAYS ALEX MOTT NOKIA'S UNITED KINGDOM MOBILEPHONE MARKETING MANAGER IN GERMANY HAMBURGBASED DR NEUHAUS PLANS TO CHARGE 880 MARKS 509 INCLUDING TAX SIEMENS'S SYSTEM WILL BE ABOUT 1000 MARKS 57843 MR HEFNER SAYS THAT'S ON TOP OF THE STEEP PHONECOMPANY CHARGES FOR MAKING ANY GSM CALL WHETHER COMPUTER OR VOICE THE PC MAKERS WHOSE ROLE HAS BEEN TO MAKE THEIR PORTABLES ACCEPT THE NEW DEVICES EXPECT PRICES TO FALL IN THE TIMEHONORED PATTERN OF THE ELECTRONICS INDUSTRY EVEN THIS YEAR'S PRICES AREN'T A LOT MORE THAN THE 400 THAT EUROPEANS PAY FOR CONVENTIONAL NOTEBOOK MODEMS SAYS IBM'S MR LARSEN MANY PEOPLE MAY PAY EXTRA FOR A RELIABLE WIRELESS CONNECTION HE SAYS TRUE ROAD WARRIERS WILL BE UNDAUNTED SAYS NOKIA'S MR MOTT IT'S AN ULTIMATE SOLUTION FOR PEOPLE IN EIGHT DIFFERENT EUROPEAN CAPITALS A WEEK AND WHO NEED TO GET MESSAGES OFF QUICKLY 9402250099 940225 INTERNATIONAL YELTSIN VEERS FROM CONCEPT OF FREE MARKET STRONG STATE ROLE IS URGED AS WAY TO END RUSSIA'S ECONOMIC SOCIAL ILLS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PRESIDENT BORIS YELTSIN MADE A CLEAR TURN AWAY FROM FREEMARKET ECONOMICS TELLING PARLIAMENT THAT A STRONG STATE APPARATUS IS THE ONLY MEANS TO END RUSSIA'S ECONOMIC AND SOCIAL CRISES ON EVERY ISSUE FROM STREET CRIME TO INTERNATIONAL TENSION MR YELTSIN CALLED FOR A STRONG STATE AS LONG AS WE HAVE A WEAK STATE THERE'S NO ORDER AND STABILITY IN RUSSIA MR YELTSIN SAID IN THE OPENING OF WHAT WAS BILLED AS THE FIRST ANNUAL STATE OF THE UNION ADDRESS TO BOTH HOUSES OF PARLIAMENT IN THE NATIONALLY TELEVISED 50MINUTE SPEECH MR YELTSIN SAID A STRONG STATE IS NEEDED TO CURB CRIME AND WITHOUT A STRONG STATE WE CAN'T OVERCOME THE ECONOMIC CRISIS ALTHOUGH HE PLEDGED ALLEGIANCE TO THE ECONOMIC REFORMS BEGUN IN 1992 HE ALSO SAID IT IS ESSENTIAL TO TAKE STEPS TO CLOSE THE WIDENING GAP BETWEEN RICH AND POOR THERE IS MORE FREEDOM IN OUR COUNTRY NOW BUT THAT IS NOT ENOUGH OUR TASK IS TO MAKE SURE THERE IS MORE JUSTICE MORE SAFETY MORE CONFIDENCE IN TODAY AND TOMORROW HE SAID MR YELTSIN'S SPEECH WHICH INCLUDED REPEATED CALLS FOR COOPERATION WITH THE LEGISLATURE HELPED DEFUSE TENSION BETWEEN THE PRESIDENT AND THE LOWER HOUSE OF PARLIAMENT WHICH IS DOMINATED BY COMMUNISTS AND NATIONALISTS THAT BODY VOTED WEDNESDAY TO FREE HUNDREDS OF PRISONERS INCLUDING THE LEADERS OF LAST AUTUMN'S ARMED ANTIYELTSIN REBELLION MR YELTSIN DIDN'T MENTION THE DECISION BUT URGED EVERYONE TO PUT ASIDE POLITICAL GAMES AND FOCUS ON CREATING LEGISLATION AND REGULATIONS MR YELTSIN'S VISION OF A STRONG STATE IS FAMILIAR IN RUSSIA WHERE LEADERS FROM PETER THE GREAT TO THE BOLSHEVIKS TRIED TO BRING PROGRESS THROUGH STRONG GOVERNMENT BUT IT DIRECTLY CONTRADICTS THE ATTEMPTS BY REFORMERS TO DIMINISH THE STATE STRUCTURE YEGOR GAIDAR FORMER DEPUTY PRIME MINISTER SPEAKS OF THE FREEDOM OF THE PEOPLE THE SELFGOVERNING OF THE PEOPLE BUT YELTSIN NEVER MENTIONED THE CIVIC SOCIETY OR SELFGOVERNING REMARKED IGOR TORBAKOV A HISTORIAN AT THE INSTITUTE OF RUSSIAN HISTORY THIS IS EXTREMELY IMPORTANT IN THE IDEOLOGICAL SENSE MR YELTSIN DEVOTED A LARGE PART OF HIS SPEECH TO THE NEED TO COMBAT CRIME AND CORRUPTION HE SAID A SPECIAL LAW ON FIGHTING CRIME SHOULD BE PASSED AND FINANCING BE MADE AVAILABLE TO CARRY OUT CONCENTRATED STRIKES AGAINST ORGANIZED CRIME ALTHOUGH HE CRITICIZED THE EXPANSION OF CONTROL BY APPARATCHIK BUREAUCRATS IN THE ECONOMY HE ALSO BLAMED THE RAMPANT CORRUPTION NOT ON AN OVERABUNDANCE OF CORRUPTIBLE BUREAUCRATS BUT ON LACK OF STATE CONTROL THE STATE SECTOR MUST BE CONTROLLED BY THE STATE HE SAID CALLING FOR STATE CONTROL OVER EXPORTS OF OIL AND OTHER STRATEGIC RESOURCES AND TOUGHER PENALTIES FOR FUNNELING HARD CURRENCY OUT OF THE COUNTRY SUCH POLICIES ALIGN MR YELTSIN WITH HIS PRIME MINISTER VIKTOR CHERNOMYRDIN A FORMER GASINDUSTRY BOSS AND CONSERVATIVE WHOSE POLITICAL STAR HAS BEEN RISING ALTHOUGH HE GAVE FEW SPECIFICS THE PRESIDENT CALLED FOR A SIMPLER MORE CONSISTENT TAX POLICY AND SAID THE GOVERNMENT SHOULD OUTLINE AN INDUSTRIAL POLICY THE STATE SHOULD DEFINE PRIORITY INDUSTRIES THAT WILL RECEIVE STATE SUPPORT AND REDUCE FUNDING TO NONPRIORITY INDUSTRIES HE SAID IN EXPANDED EXCERPTS FROM A 110PAGE POLICY DOCUMENT FROM WHICH MR YELTSIN DREW HIS SPEECH HE ALSO CALLED FOR DEEP REFORM OF THE CENTRAL BANK IN ORDER TO CREATE A FEDERAL RESERVE SYSTEM THE EXCERPTS WERE PUBLISHED BY THE OFFICIAL NEWS AGENCY ITARTASS MR YELTSIN SAID HE WOULD GUARANTEE THAT INFLATION NOT EXCEED A MAXIMUM LEVEL BUT HE ALSO WARNED THAT A DECENT LEVEL OF SOCIAL PROTECTION MUST BE GUARANTEED BY THE GOVERNMENT THE SPEED OF REFORMS MUST BE CORRELATED WITH THE SOCIAL PRICE OF REFORMS HE SAID AND STATE REGULATIONS SHOULD BE CREATED THAT ARE COMPATIBLE WITH MARKET MECHANISMS MR YELTSIN EXPRESSED CONCERN THAT TOO LITTLE HAD BEEN DONE TO ATTRACT FOREIGN INVESTMENT BUT HE ALSO SOUNDED A POPULAR PROTECTIONIST NOTE THE RUSSIAN STATE SHOULD DEFEND THE INTERESTS OF ITS ENTREPRENEURS IN BOTH THE INTERNAL AND EXTERNAL MARKETS RUSSIA WILL ACT AS A STRONG STATE INTERNATIONALLY HE SAID PRACTICE SHOWS THAT NO ONE BUT RUSSIA IS PREPARED TO TAKE ON ITS SHOULDERS THE BURDEN OF PEACEMAKING IN THIS GEOGRAPHIC REGION SO RUSSIA'S ROLE IS NOW GROWING MR YELTSIN SAID THAT RUSSIA WILL PAY CONSTANT ATTENTION TO THE NEEDS OF ETHNIC RUSSIANS LIVING IN OTHER FORMER SOVIET STATES AND WILL CONSIDER IT A NATIONAL CAUSE TO STOP ANY DISCRIMINATION AGAINST THEM IN WORLD AFFAIRS HE SAID RUSSIA HAS THE RIGHT TO ACT FIRMLY AND TOUGHLY WHEN IT'S NECESSARY RUSSIA WILL CONTINUE TO WORK FOR NONPROLIFERATION OF NUCLEAR WEAPONS AND A REDUCTION IN ARMED FORCES BUT HE SAID ALL COUNTRIES SHOULD DO THIS IN 1994 WE WILL PUT AN END TO THE PRACTICE OF UNILATERAL CONCESSIONS HE SAID IMPLYING THAT RUSSIA'S DEFENSE BUDGET WOULDN'T BE CUT FURTHER THE WEST'S ATTEMPT TO BUILD A BROADER INTERNATIONAL PARTNERSHIP ALSO MUST BE MORE EGALITARIAN HE SAID FOR EXAMPLE RUSSIA OPPOSES THE NORTH ATLANTIC TREATY ORGANIZATION'S ACCEPTING ANY NEW MEMBERS UNLESS RUSSIA IS ALSO ACCEPTED RUSSIA ISN'T A GUEST IN EUROPE IT IS A FULLY FLEDGED PARTICIPANT MR YELTSIN SAID 9402250098 940225 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL AMERICAN CATHY TURNER DEFENDED HER 500METER SHORTTRACK GOLD MEDAL WITH A PERFORMANCE THAT WAS PROTESTED BY OPPONENTS CHINA'S ZHANG YANMEI WHO FINISHED SECOND STORMED OFF THE MEDALS STAND AND HURLED HER HONORARY BOUQUET OF FLOWERS MS ZHANG POINTED AT MS TURNER AS SOON AS SHE CROSSED THE FINISH LINE AND MADE A CLIPPING MOTION COMPLAINING THAT MS TURNER BRUSHED HER RIGHT LEG EARLIER SHORTTRACK WORLD CHAMPION NATHALIE LAMBERT OF CANADA LEFT THE TRACK IN TEARS AFTER FALLING IN THE QUARTERFINALS A FALL SHE BLAMED ON MS TURNER IN THE FINAL MS TURNER TAILED MS ZHANG UNTIL MAKING HER MOVE ON THE OUTSIDE WITH TWO LAPS TO GO MS TURNER BATTLED ELBOWTOELBOW WITH MS ZHANG THROUGH TWO CORNERS BEFORE JUMPING INTO THE LEAD MS TURNER'S TIME WAS AN OLYMPIC RECORD OF 4598 SECONDS AMERICAN AMY PETERSON WON THE BRONZE DEBORAH COMPAGNONI OF ITALY WON THE WOMEN'S GIANT SLALOM LEADING A EUROPEAN SWEEP OF THE MEDALS MS COMPAGNONI BEAT GERMAN MARTINA ERTL BY 122 SECONDS AND SWISS VETERAN VRENI SCHNEIDER BY 2 SECONDS OVER THE TWO RUNS MS COMPAGNONI'S TIME WAS 2 MINUTES 3097 SECONDS DIANN ROFFESTEINROTTER OF THE US WINNER OF THE WOMEN'S SUPERGIANT SLALOM HAD A FIRSTRUN TIME OF 12355 318 OFF THE LEAD THEN SKIPPED THE SECOND RUN COMPLAINING OF A VIRUS THAT HAS BOTHERED HER FOR SEVERAL DAYS MANUELA DI CENTA OF ITALY LED FROM START TO FINISH AND BEAT NORWAY'S MARIT WOLD BY 162 SECONDS TO WIN THE WOMEN'S 30KILOMETER CROSSCOUNTRY SKI RACE FINNISH VETERAN MARJALIISA KIRVESNIEMI TOOK THE BRONZE LYUBOV EGOROVA OF RUSSIA TRYING TO WIN A HISTORIC SEVENTH OLYMPIC GOLD MEDAL FINISHED FIFTH IT WAS THE FIRST TIME SHE FAILED TO MEDAL IN 10 OLYMPIC RACES MS DI CENTA MEDALED IN EACH OF HER FIVE RACES IN LILLEHAMMER SHE FINISHED THE WOMEN'S LONGEST RACE IN 1 HOUR 25 MINUTES 416 SECONDS JAPAN WITH A BIG LEAD FROM ITS SKIJUMPING TRIUMPH EASILY HELD OFF NORWAY ON THE CROSSCOUNTRY TRAILS TO DEFEND ITS NORDIC COMBINED TEAM CHAMPIONSHIP BASED ON SKIJUMPING POINTS EARNED WEDNESDAY JAPAN'S THREEMAN TEAM STARTED THE 30KILOMETER RELAY 5 MINUTES 7 SECONDS AHEAD OF NORWAY AND LOST ONLY 18 SECONDS OF THAT MARGIN WINNING BY 4491 SWITZERLAND WON THE BRONZE MEDAL 7481 BEHIND THE WINNERS THE US ENDED SEVENTH ANDREAS SCHOENBAECHLER OF SWITZERLAND SOARED PAST THE QUEBEC AIR FORCE TO WIN THE MEN'S EVENT MR SCHOENBAECHLER CURRENTLY RANKED FOURTH ON THE WORLD CUP BEHIND THE SOCALLED QUEBEC AIR FORCE PHILIPPE LAROCHE NICOLAS FONTAINE AND LLOYD LANGLOIS OUTJUMPED THEM ALL HIS SECOND JUMP A TRIPLE WITH FOUR TWISTS WAS THE BEST OF THE DAY WITH A SCORE OF 12148 POINTS MR LAROCHE WON THE SILVER MEDAL AND MR LANGLOIS THE BRONZE IN THE WOMEN'S COMPETITION LINA CHERJAZOVA OF UZBEKISTAN WON THE GOLD MEDAL AFTER BARELY QUALIFYING FOR THE FINAL ROUND SWEDEN'S MARIE LINDGREN WON THE SILVER AND NORWAY'S HILDE SYNNOVE LID TOOK THE BRONZE 9402250097 940225 MARKETING MOLSON ICE ADS RAISE HACKLES OF REGULATORS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL OFFICIALS AT THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS ARE INVESTIGATING WHETHER MILLER BREWING CO IS BASING THE MARKETING OF AN ICE BEER MOLSON ICE ON THE PRODUCT'S HIGHER ALCOHOL CONTENT MOST ICE BEER WHICH IS BREWED AT TEMPERATURES SO COLD THAT ICE CRYSTALS FORM IS ABOUT 55 ALCOHOL BY VOLUME COMPARED WITH 45 TO 5 FOR REGULAR AND LIGHT BEERS BUT IT IS AGAINST FEDERAL LAW TO TRUMPET A BEER'S ALCOHOLIC KICK IN ADVERTISING ANTIALCOHOL ACTIVISTS ARE ALSO WORRIED ABOUT THE HIGHLY ADVERTISED INTRODUCTION OF A MORE POTENT BEER BECAUSE BEER IS OVERWHELMINGLY THE BEVERAGE OF CHOICE AMONG UNDERAGE DRINKERS BEER INDUSTRY OBSERVERS SAY REGULATORS ARE PARTICULARLY CONCERNED ABOUT A TELEVISION COMMERCIAL FOR MOLSON ICE THAT FOCUSES ON A LABEL DISPLAYING A 56 ALCOHOLIC CONTENT JUST AS A DEEPVOICED NARRATOR INTONES THAT MOLSON ICE IS A BOLDER DRINK MOLSON ICE IS MARKETED IN THE US BY MILLER BREWING A UNIT OF PHILIP MORRIS COS BATF OFFICIALS WON'T DISCUSS SPECIFIC ADS WE HAVE NOTED IN SEVERAL ADS FOR ICEBEER PRODUCTS A CERTAIN PROMINENCE OF THE ALCOHOL CONTENT WE HAVE CONCERNS ABOUT HOW THAT IS BEING USED AND WE ARE INVESTIGATING SAYS JACK KILLORIN A SPOKESMAN FOR THE BUREAU MILLER ADAMANTLY DENIES ITS ADS ARE ILLEGAL THE COMPANY NOTES THAT THE MOLSON ICE LABEL WAS APPROVED BY FEDERAL REGULATORS AND THAT IT IS LEGAL TO SHOW IT IN ADVERTISING ICE BEER MARKS THE LATEST CLASH BETWEEN A BREWER AND REGULATORS OVER THE ISSUE OF POTENCY AND ADVERTISING IN 1991 G HEILEMAN BREWING CO WITHDREW ITS POWERMASTER MALT LIQUOR AFTER THE BATF TOLD THE COMPANY TO DROP THE WORD POWER FROM ITS NAME POWERMASTER WOULD HAVE CONTAINED 73 ALCOHOL BY VOLUME THE MOLSON ICE ADS ARE THE FIRST TEST OF HOW RIGOROUSLY REGULATORS WILL POLICE RULES THAT WENT INTO EFFECT LAST YEAR ALLOWING BREWERS FOR THE FIRST TIME SINCE PROHIBITION TO DISCLOSE ON PACKAGES HOW MUCH ALCOHOL THEIR PRODUCTS CONTAIN CONGRESS HAD BANNED BEER MAKERS FROM INCLUDING THE ALCOHOL CONTENT ON THEIR LABELS FEARING THAT IT WOULD LEAD TO STRENGTH WARS WITH BREWERS OFFERING EVERSTRONGER BEERS TO CONSUMERS THAT LAW WAS RECENTLY OVERTURNED AFTER A COURT CHALLENGE BY COORS BREWING CO RIVAL BREWERS COMPLAIN THAT MILLER IS RISKING A DANGEROUS BACKLASH WITH ITS ADVERTISING FOR ICE BEERS WHICH ARE ONE OF THE HOTTEST NEW BEER PRODUCTS IN YEARS MOST BREWERS HAVE RUSHED TO MARKET WITH AN ICE BEER AND MILLER ALONE HAS FIVE DIFFERENT ICE BEERS ON THE MARKET OR IN TEST THE ICE AGE HAS LED TO AN UNUSUAL RIFT BETWEEN THE TWO LARGEST COMPANIES IN AN INDUSTRY WHERE RIVALS USUALLY PRESENT A UNIFIED FACE TO THE GOVERNMENT THE NATION'S LARGEST BREWER ANHEUSERBUSCH COS HAS MADE ITS ICE DRAFT 5 ALCOHOL BY VOLUME THE SAME AS ITS POPULAR BUDWEISER BRAND WE THINK IT IS SUICIDAL TO MARKET A PRODUCT BASED ON ITS ALCOHOL CONTENT SAYS AUGUST A BUSCH IV VICE PRESIDENT OF BRAND MANAGEMENT AT ANHEUSERBUSCH IT COULD GIVE THE INDUSTRY A REAL BLACK EYE CRITICS ALSO SAY THAT ADVERTISEMENTS FOR MILLER'S LITE ICE BRAND ARE PUSHING ITS 55 ALCOHOL CONTENT WITH THE SLOGAN MORE OF WHAT YOU WANT LESS OF WHAT YOU DON'T WANT NEW RULES KIDS DRINK TO GET DRUNK SAYS GEORGE HACKER DIRECTOR OF THE ALCOHOL POLICIES PROJECT FOR THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST THAT'S MORE OF WHAT THEY WANT IN A BEER IN ADDITION TO THE ADS SOME OF MILLER'S SALES FORCE ARE ACTIVELY PROMOTING THE RELATIVE KICK OF THE ICE BEERS IN VISITS TO LIQUOR STORES AND BARS WHEN MILLER INTRODUCED ITS MOLSON ICE LAST YEAR THE COMPANY PUT OUT THE WORD ON THE STREET THAT IT HAD MORE BUZZ FOR THE BUCK SAYS JOHN BEQUEATH GENERAL MANAGER OF GREENS BEER AND WINE IN ATLANTA THEY TALKED IT UP WITH BARTENDERS HE SAYS MILLER IS USING A SIMILAR STRATEGY TO INTRODUCE ITS LITE ICE WHICH WAS ROLLED OUT NATIONALLY EARLIER THIS WEEK MY MILLER REP WAS JUST IN AND HE SAID THAT THEY ARE GOING TO STRESS THE FACT THAT LITE ICE HAS A GOOD KICK TO IT MR BEQUEATH SAYS HE SAID THAT WAS GOING TO BE ONE OF THEIR BIG MARKETING PLOYS IN ADDITION TO WALLETSIZE CARDS AND POSTERS THAT COMPARE THE STRENGTH OF MILLER ICE OFFERINGS WITH RIVALS RETAILERS SAY MILLER REPRESENTATIVES ALSO WERE STICKING ORANGE NEON STICKERS ON BEER COOLERS CALLING ATTENTION TO THE ALCOHOL CONTENT OF ICEHOUSE ANOTHER MILLER BRAND MILLER EMPLOYEES ARE ALSO DERIDING ANHEUSERBUSCH'S PRODUCT AS THIN ICE BECAUSE OF SUCH TACTICS ANHEUSERBUSCH HAS COMPLAINED TO THE BATF THAT MILLER IS ILLEGALLY MAKING STRENGTH CLAIMS THE TACTICS THEMSELVES ARE NOT ILLEGAL BUT BATF OFFICIALS SAY SUCH ACTIONS IN THE CHAIN OF COMMERCE ARE RELEVANT IN DETERMINING WHETHER THE ADS BREAK THE LAW MILLER ACKNOWLEDGES THAT THERE MAY BE ISOLATED EXAMPLES OF ITS REPRESENTATIVES POSTING THE ALCOHOLIC CONTENT OF ITS ICE BEERS IN PUBLIC PLACES BUT STRESSES THAT ITS PROMOTIONS TO RETAILERS ARE LEGAL AND ARE CONDUCTED IN CLOSE CONSULTATION WITH THE BATF A SPOKESWOMAN FOR MILLER ALSO SAYS THERE IS SOME CONFUSION ABOUT WHAT'S ALLOWED UNDER THE NEW RULES 9402250096 940225 MACMILLAN BLOEDEL MAY SELL UNIT VANCOUVER BRITISH COLUMBIA MACMILLAN BLOEDEL LTD SAID IT WILL EXPLORE THE POSSIBLE SALE OF ITS HARMAC MARKETPULP BUSINESS MACMILLAN BLOEDEL WILL REORGANIZE THE HARMAC MILL IN NANAIMO BRITISH COLUMBIA AND ITS RELATED MARKETING NETWORK AS A SEPARATE UNIT THE MILL EMPLOYS 760 PEOPLE AND HAS ANNUAL CAPACITY OF 350000 METRIC TONS MACMILLAN BLOEDEL A FORESTPRODUCTS CONCERN SAID IT HAS DECIDED TO FOCUS ON ITS BUILDING MATERIALS GROUNDWOOD PRINTINGPAPER AND PACKAGING BUSINESSES 9402250095 940225 LAW SEC WANTS EXPLANATIONS FROM FIRMS PLANNING TO POST RESTRUCTURING LOSSES BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS SUSPICIOUS THAT THERE MAY BE MORE TO CORPORATERESTRUCTURING CHARGES THAN MEETS THE EYE OF THE AVERAGE SHAREHOLDER AS A RESULT 84 COMPANIES THAT HAVE ANNOUNCED THEIR PLANS TO BOOK LOSSES FOR RESTRUCTURING RECENTLY RECEIVED MAIL FROM THE SEC REMINDING THEM TO EXPLAIN EXPLAIN EXPLAIN THIS WAS A VERY UNUSUAL MOVE FOR US TO BE SENDING OUT A LETTER OF THIS SORT SAID TERRY IANNACONI ASSOCIATE DIRECTOR FOR ACCOUNTING OPERATIONS IN THE SEC'S CORPORATIONFINANCE DIVISION SO OFTEN WE RESPOND TO WHAT WE SEE IN FILINGS BY WARNING COMPANIES BEFORE THEY FILE EARNINGS REPORTS SHE SAID WE HOPE WE CAN HAVE AN IMPACT SHE DECLINED TO IDENTIFY ANY OF THE COMPANIES RESTRUCTURING CHARGES HAVE BECOME INCREASINGLY COMMON AS COMPANIES SHED WORKERS AND UNPROFITABLE BUSINESS LINES AMONG THE COMPANIES REPORTING SUCH LOSSES THIS YEAR ARE ADOLPH COORS CO RALLY'S HAMBURGERS INC AND HUFFY CORP ANNOUNCEMENTS OF SUCH MOVES AND THE RESULTING FINANCIAL LOSSES HAVE OFTEN CAUSED COMPANIES' STOCK PRICES TO JUMP AS STOCK BUYERS ANTICIPATE LEANER MORE PROFITABLE COMPANIES EARLIER THIS MONTH AETNA LIFE & CASUALTY CO SAW ITS STOCK RISE AFTER ANNOUNCING A RESTRUCTURING THAT INCLUDES REDUCING ITS WORK FORCE BY 4000 AND GETTING OUT OF CERTAIN BUSINESSES THE SEEMING BENEFITS OF RESTRUCTURING HAVE CAUGHT THE SEC'S ATTENTION THE FACT THAT MARKET REACTIONS HAVE BEEN GENERALLY POSITIVE TO THESE CHARGES MAY ACCOUNT FOR THE POPULARITY OF THIS ITEM ROBERT BAYLESS CHIEF ACCOUNTANT OF THE SEC'S CORPORATIONFINANCE DIVISION RECENTLY TOLD A GATHERING OF ACCOUNTANTS BUT MR BAYLESS WHO DIDN'T IDENTIFY ANY COMPANIES WARNED THE ACCOUNTANTS THAT THE SEC STAFF HAS SEEN EXPLANATIONS OF RESTRUCTURING CHARGES THAT ARE RATHER SPARSE AND RATHER VAGUE THE EXPLANATIONS CAN BE MADE IN QUARTERLY OR ANNUAL FINANCIAL REPORTS THE AGENCY EXPECTS MORE IN THOSE INSTANCES HE SAID INCLUDING A MORE THOROUGH DISCUSSION OF THE INDIVIDUAL ELEMENTS OF THE CHARGES AND THE CIRCUMSTANCES LEADING TO THEIR RECOGNITION AT THE SAME TIME MR BAYLESS SAID THE SEC HAS SEEN SOME COMPANIES CLAIM LOSSES AS RESTRUCTURING CHARGES WHEN THEY'RE NOT THE STAFF IS AWARE OF SOME CASES WHERE THE RESTRUCTURING CHARGE WAS RUN THROUGH THE INCOME STATEMENT TO THE CHEERS OF WALL STREET BUT DEEP WITHIN THE BELLY OF THAT TROJAN HORSE WERE CHARGES FOR ORDINARY OPERATING ITEMS SUCH AS ENVIRONMENTAL LIABILITIES INVENTORY IMPAIRMENTS AND WRITEOFFS OF LONGOBSOLETE INTANGIBLE ASSETS MR BAYLESS SAID PERHAPS MANAGEMENT DESERVED THE ACCOLADES FOR RECOGNIZING THE LOSSES HE ADDED BUT INVESTORS DESERVE A FAIR AND COMPLETE CHARACTERIZATION OF EACH MATERIAL CHARGE SO THAT THEY CAN EVALUATE THE RESULTS OF MANAGEMENT'S PRIOR DECISIONS IN CASE THE AUDITORS DIDN'T GET THE MESSAGE THE SEC SENT THE LETTERS TO THE COMPANIES PLANNING TO BOOK RESTRUCTURING LOSSES IN COMING FINANCIAL STATEMENTS THE AGENCY IDENTIFIED THE COMPANIES THROUGH NEWS STORIES IN THE FINANCIAL PRESS INCLUDING THE WALL STREET JOURNAL MS IANNACONI SAID STARTING IN LATE DECEMBER AND THROUGH JANUARY AND FEBRUARY IT SEEMED THERE WERE THREE AND FOUR COMPANIES A DAY THAT ANNOUNCED THAT THEY WOULD BE TAKING RESTRUCTURING CHARGES MS IANNACONI SAID WE HAD DECIDED THAT THIS LETTER IS A WAY TO FOCUS ATTENTION ON OUR CONCERNS 9402250094 940225 DIVIDEND NEWS UNISYS CORP UNISYS CORP BLUE BELL PA SAID DIRECTORS APPROVED FULL PAYMENT OF DIVIDEND ARREARAGE ON ITS SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK OR A TOTAL OF 80 MILLION UNISYS DECLARED A DIVIDEND ON THE STOCK OF 375 A SHARE INCLUDING THE ARREARAGE OF 28125 A SHARE AND THE QUARTERLY DIVIDEND OF 9375 CENTS A SHARE PAYABLE APRIL 15 TO STOCK OF RECORD MARCH 23 UNISYS HAD SUSPENDED PREFERRED STOCK DIVIDENDS IN FEBRUARY 1991 AND RESUMED PARTIAL PAYMENT OF THE DIVIDEND ARREARAGE IN OCTOBER 1992 UNISYS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES A UNRUH SAID THE INFORMATION SYSTEMS COMPANY'S STRONG FINANCIAL PERFORMANCE AND SIGNIFICANT OPERATIONAL PROGRESS PERMIT IT TO ACCELERATE THE PLAN TO MAKE UP THE ARREARAGE 9402250093 940225 BUSINESS BRIEF US WATS INC NEW CONTRACT WITH GE UNIT EXPANDS ACCESS TO NETWORKS LONGDISTANCE CARRIER US WATS INC BALA CYNWYD PA SAID IT SIGNED A CONTRACT WITH GE CAPITAL COMMUNICATION SERVICES CORP THAT WILL SIGNIFICANTLY EXPAND ITS ACCESS TO MAJOR LONGDISTANCE NETWORKS IN RETURN FOR THE ACCESS US WATS GRANTED THE ATLANTABASED LONGDISTANCE RESELLER THE OPTION TO PURCHASE ABOUT 19 MILLION SHARES OR 10 OF THE OUTSTANDING COMMON STOCK AT MARKET US WATS SAID THE NEW BUSINESS OPPORTUNITIES COULD INCREASE ITS REVENUE BY SOME MULTIPLE GE CAPITAL COMMUNICATION IS A UNIT OF GENERAL ELECTRIC CO US WATS ALREADY PROVIDES THE AMERICAN TELEPHONE & TELEGRAPH CO LONGDISTANCE NETWORK SERVICE AT AS MUCH AS 30 BELOW STANDARD AT&T RATES MAINLY TO SMALL AND MEDIUMSIZED COMPANIES US WATS STOCK ROSE 6 TO CLOSE AT 425 UP 25 CENTS IN OVERTHECOUNTER TRADING YESTERDAY 9402250092 940225 JC PENNEY REPORTS PROFIT JUMPED 17 IN FISCAL 4TH PERIOD PLANO TEXAS BOOSTED BY STRONG CATALOG SALES JC PENNEY CO REPORTED A 17 INCREASE IN PROFIT FOR ITS FISCAL FOURTH QUARTER TO 437 MILLION OR 164 A SHARE FROM 375 MILLION OR 142 IN THE YEARAGO PERIOD THE RESULTS WHICH INCLUDED A 2 MILLION CHARGE FOR DEBT REDEMPTION EXCEEDED ANALYSTS' EXPECTATIONS OF ABOUT 160 A SHARE SALES FOR THE PERIOD ENDED JAN 29 ROSE 39 TO 632 BILLION NOTING THAT PENNEY'S CATALOG SALES ROSE 23 FOR THE QUARTER EDWARD WELLER AN ANALYST WITH ROBERTSON STEPHENS SAID THAT SEARS ROEBUCK & CO'S WITHDRAWAL FROM THE CATALOG BUSINESS CONTINUES TO BE A MAJOR STROKE OF GOOD LUCK FOR PENNEY THE NATION'S FIFTHLARGEST RETAILER BY IMPROVING THE QUALITY OF ITS BRANDS WHILE CUTTING PRICES ANALYSTS SAID THE RESULTS INDICATE THAT PENNEY HAS LURED CUSTOMERS FROM OTHER RETAILERS I THINK IT SHOWS THAT THE COMPANY CONTINUES TO GAIN MARKET SHARE IN THE MASS MIDDLE MARKETS OF THE COUNTRY AND THAT THEIR MERCHANDISE CONNOTATES GOOD PRICETOVALUE IMAGES IN THE CONSUMERS' MINDS SAID DENNIS VAN ZELFDEN AN INDUSTRY ANALYST WITH RAUSCHER PIERCE REFSNES FOR THE FISCAL YEAR PENNEY POSTED A 21 INCREASE IN NET INCOME TO 940 MILLION OR 353 A SHARE FROM 777 MILLION OR 295 A SHARE THE CURRENT FISCALYEAR RESULTS INCLUDED A 55 MILLION EXTRAORDINARY CHARGE FOR DEBT REDUCTION AND A 51 MILLION GAIN FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PENNEY CLOSED AT 5350 DOWN 1875 9402250091 940225 ESPY TO ASK FDA APPROVAL FOR IRRADIATION OF BEEF WASHINGTON AGRICULTURE SECRETARY MIKE ESPY SAID HE SUPPORTS IRRADIATION AS A MEANS OF IMPROVING FOOD SAFETY AND WILL ASK THE FOOD AND DRUG ADMINISTRATION TO APPROVE THE PROCESS FOR BEEF CONCERNS DO EXIST ON ASPECTS OF CONSUMER CONFIDENCE AND WORKER SAFETY SAID STEVE KINSELLA THE AGRICULTURE DEPARTMENT'S PRESS SECRETARY BUT CLEARLY IRRADIATION IS WORTH TAKING A LOOK AT IN IRRADIATION THE MEAT WILL BE EXPOSED TO LOW LEVELS OF RADIATION TO KILL PATHOGENS SUCH AS THE E COLI BACTERIA ALTHOUGH THE PROCESS IS ALREADY USED IN FRUITS AND POULTRY CONSUMER ACCEPTANCE HAS BEEN SLOW AN FDA REVIEW OF THE PROCESS COULD TAKE AT LEAST 18 MONTHS 9402250090 940225 FORMER ROSTENKOWSKI AIDE TESTIFIES UNDER PRESSURE WASHINGTON UNDER THREAT OF CONTEMPT OF COURT A FORMER AIDE TO REP DAN ROSTENKOWSKI TESTIFIED BEFORE A FEDERAL GRAND JURY INVESTIGATING CORRUPTION ALLEGATIONS AGAINST THE CONGRESSMAN THE FORMER AIDE CELESTE GABINSKI GAVE HER SECRET TESTIMONY BEFORE THE EXPIRATION OF A 10DAY DEADLINE AFTER WHICH SHE COULD HAVE BEEN JAILED ONE OF THE CHARGES THE GRAND JURY IS INVESTIGATING IS WHETHER THE CHICAGO DEMOCRAT KEPT MRS GABINSKI ON HIS OFFICE PAYROLL AFTER SHE NO LONGER WORKED THERE MRS GABINSKI TESTIFIED ONCE AFTER BEING GRANTED IMMUNITY FROM PROSECUTION BUT SHE WAS CITED FOR CONTEMPT OF COURT WHEN SHE REFUSED TO TESTIFY AGAIN HER LAWYER WANTED ASSURANCE THAT SHE WOULD NOT BE SUBJECTED TO PERJURY CHARGES AFTER THE SECOND TESTIMONY SHE ULTIMATELY TESTIFIED AGAIN WITHOUT A NEW GRANT OF IMMUNITY PRESIDENT CLINTON PLANS TO CAMPAIGN FOR MR ROSTENKOWSKI WHO FACES A TOUGH PRIMARY VOTE ON MARCH 15 MR ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE IS A MAJOR PLAYER IN THE CLINTON ADMINISTRATION'S TOP LEGISLATIVE PRIORITIES INCLUDING HEALTHCARE WELFARE AND THE BUDGET ATTORNEY GENERAL JANET RENO TOLD REPORTERS YESTERDAY THAT SHE HAS AN OPINION ABOUT THE PRESIDENT CAMPAIGNING FOR MR ROSTENKOWSKI BUT SHE WOULDN'T SAY WHAT IT IS SHE DID SAY SHE HAS TOLD THE WHITE HOUSE THAT SHE WANTED THIS INVESTIGATION CONDUCTED IN A PROFESSIONAL WAY FREE OF POLITICS 9402250089 940225 ABREAST OF THE MARKET STOCKS FALL SHARPLY AS RATES RISE AND BELL ATLANTIC DEAL UNRAVELS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES CRUMBLED UNDER THE WEIGHT OF SHARPLY RISING INTEREST RATES AND THE UNRAVELING OF BELL ATLANTIC'S PLANNED TAKEOVER OF TELECOMMUNICATIONS AFTER RECOVERING PARTIALLY DURING THE EARLY AFTERNOON THE DOW JONES INDUSTRIAL AVERAGE SANK AGAIN ENDING 5178 POINTS LOWER AT 383990 IT WAS THE DOW'S LOWEST CLOSE SINCE JAN 7 AND THE INDEX'S BIGGEST ONE DAY DROP SINCE FEB 4 WHEN THE FEDERAL RESERVE'S MOVE TO TIGHTEN MONETARY POLICY DROVE THE DOW DOWN MORE THAN 96 POINTS OTHER STOCKMARKET INDEXES ALSO POSTED STEEP DECLINES STANDARD & POOR'S 500 STOCK INDEX TUMBLED 643 POINTS TO 46426 AND THE NASDAQ COMPOSITE INDEX SLID 967 TO 77944 AS INVESTORS RAPIDLY UNLOADED TELECOMMUNICATIONS STOCKS AFTER BELL ATLANTIC'S PACT TO ACQUIRE CABLETELEVISION GIANT TELECOMMUNICATIONS COLLAPSED LATE WEDNESDAY AMID A BITTER DISAGREEMENT OVER PRICE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS OFF 616 TO 46558 THE RELENTLESS SELLING ACTIVATED THE NEW YORK STOCK EXCHANGE'S 50POINT COLLAR RULE THAT EFFECTIVELY STIFLES PROGRAM TRADING ANY TIME THE DOW INDUSTRIALS RISE OR FALL 50 POINTS THOUGH THE COLLAPSE OF THE BELL ATLANTICTELECOMMUNICATIONS DEAL CAST A PALL OVER THE MARKET WHEN IT OPENED YESTERDAY MORNING THE REAL CATALYST FOR YESTERDAY'S SHARP DROP WAS RISING INTEREST RATES THE BOND MARKET JUST ROLLED OFF THE EDGE AT ABOUT 2 PM ON THE CUMULATIVE COMMENTS BY ALAN GREENSPAN AND OTHERS ABOUT THE STRENGTH OF THE ECONOMY SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS MR DODGE SAID THAT EVEN THOUGH THE FEDERAL RESERVE DIDN'T TIGHTEN MONETARY POLICY YESTERDAY TRADERS WERE BETTING THAT BASED ON MR GREENSPAN'S COMMENTS THE FED WILL RAISE SHORTTERM INTEREST RATES SOONER RATHER THAN LATER THAT SET OFF ALARM BELLS IN THE BOND MARKET WHERE THE YIELD ON THE TREASURY'S 30YEAR BOND SHOT UP TO 673 FROM 665 THE PREVIOUS DAY THE PRICE DROPPED MORE THAN A POINT THE RISING RATES CLOBBERED UTILITY STOCKS WITH THE DOW JONES UTILITY AVERAGE SLUMPING 330 TO 20729 ITS LOWEST LEVEL SINCE APRIL 1992 SHARP SELLING IN TELECOMMUNICATIONS LED CABLETELEVISION STOCKS LOWER TELECOMMUNICATIONS CLASS A SHARES DROPPED 1 7/8 TO 22 3/8 ON HEAVY NASDAQ STOCK MARKET VOLUME OF 249 MILLION SHARES LIBERTY MEDIA'S CLASS A SHARES WHICH WERE ALSO PART OF THE MERGER EASED 5/8 TO 22 1/2 ON NASDAQ CABLEVISION SYSTEMS SLUMPED 5 1/4 TO 62 1/4 ON THE AMERICAN STOCK EXCHANGE TIME WARNER 5/8 TO 37 5/8 ON THE BIG BOARD AND COMCAST CLASS A SHARES 7/8 TO 19 1/8 ON NASDAQ TWO CABLEEQUIPMENT COMPANIES FARED POORLY ON THE BIG BOARD SCIENTIFICATLANTA DIVED 2 3/8 TO 26 AND GENERAL INSTRUMENT 6 1/8 TO 44 5/8 REGIONAL TELEPHONE ISSUES WERE MIXED ANALYSTS STILL EXPECT CABLE AND TELEPHONE COMPANIES TO PURSUE DEALS AS THEY MOVE TOWARD THE DEVELOPMENT OF INTERACTIVEMEDIA SERVICES PACIFIC TELESIS FELL 1 1/8 TO 54 1/4 WHILE BELLSOUTH ADDED 3/8 TO 54 1/4 SHARES OF SOUTHWESTERN BELL THE SAN ANTONIO TEXAS BABY BELL ADDED 1 1/4 TO 38 3/4 THE COMPANY AGREED TO ACQUIRE ASSOCIATED COMMUNICATIONS' CELLULARTELEPHONE BUSINESS FOR 680 MILLION IN STOCK SHARES OF ASSOCIATED IN PITTSBURGH LOST 2 1/8 TO 24 ON NASDAQ GENERAL INSTRUMENT TUMBLED IN THE WAKE OF THE BELL ATLANTICTELECOMMUNICATIONS DEAL'S COLLAPSE AND AFTER THE GIANT CABLETELEVISION COMPANY SAID IT WILL SUSPEND 500 MILLION OR 50 OF ITS PLANNED 1994 CAPITAL SPENDING IT CITED CONCERNS OF A FEDERAL COMMUNICATIONS COMMISSION'S ORDER THAT WILL CUT CABLE RATES GENERAL INSTRUMENT IN CHICAGO MAKES ELECTRONIC EQUIPMENT USED BY CABLE COMPANIES SHARES OF OTHER MAKERS OF CABLE EQUIPMENT DROPPED DSC COMMUNICATIONS PLANO TEXAS FELL 2 1/2 TO 52 3/4 ON NASDAQ COMPAQ COMPUTER INCREASED 3 3/8 TO 100 1/2 AFTER THE COMPANY IN HOUSTON SAID IT WILL INVEST 20 MILLION TO BOLSTER ITS DOMESTICFACTORY CAPACITY FOR MANUFACTURING DESKTOP AND PORTABLE PERSONAL COMPUTERS IT WILL MAKE PORTABLES IN THE US FOR THE FIRST TIME IN MORE THAN TWO YEARS RJR NABISCO SLIPPED 3/8 TO 7 THE COMPANY DISCLOSED PLANS TO RAISE ABOUT 2 BILLION THROUGH AN OFFERING OF PREFERRED EQUITY REDEMPTION CUMULATIVE STOCK COMMONLY CALLED PERCS OBSERVERS SAID THE MOVE COULD MEAN THE COMPANY IS MOVING CLOSER TO SPLITTING ITS TOBACCO AND FOOD OPERATIONS 9402250088 940225 ECONOMY CURBS ARE EASED ON COMPUTER EXPORTS TO MOST COUNTRIES AS VOWED BY CLINTON BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION EASED REGULATORY RESTRICTIONS ON COMPUTER EXPORTS TO MOST COUNTRIES AS PART OF A BROAD POLICY REVIEW OF GOVERNMENT CONTROLS OVER THE SALE OF HIGHTECHNOLOGY GOODS THE ACTION FULFILLS A PLEDGE PRESIDENT CLINTON MADE LAST FALL IT WILL MAKE IT EASIER FOR US COMPANIES TO SHIP EXPORTS TO MANY COUNTRIES BUT DOESN'T AFFECT A GROUP OF COUNTRIES SUCH AS CHINA AND RUSSIA FOR WHOM EXPORTS ARE MOST TIGHTLY RESTRICTED IT'S A BIG DEAL SAID GREG GARCIA SENIOR MANAGER FOR INTERNATIONAL TRADE AFFAIRS AT THE AMERICAN ELECTRONICS ASSOCIATION WHICH REPRESENTS MAJOR HIGHTECH COMPANIES IT'S GOING TO FREE UP A SIGNIFICANT AMOUNT OF EXPORTS THE ADMINISTRATION ESTIMATED THAT THE NEW REGULATIONS WILL FREE UP 30 BILLION OF COMPUTER EXPORTS ANNUALLY THE ADMINISTRATION SAID THAT FOR MOST COUNTRIES RESTRICTIONS WOULD BE EASED FOR DIGITAL COMPUTERS OPERATING UP TO 1000 MTOPS OR MILLION THEORETICAL OPERATIONS PER SECOND IT ALSO SAID IT WOULD EASE RULES FOR THE COMPUTERS OPERATING UP TO 500 MTOPS TO COUNTRIES THE US HAS PINPOINTED AS DESIGNING OR BUILDING NUCLEAR WEAPONS UNDER THESE NEW REQUIREMENTS US COMPANIES WOULD HAVE TO GET ONLY GENERAL LICENSES WHICH DON'T INVOLVE AN ELABORATE BUREAUCRATIC PROCESS THE LIMIT FOR BOTH CATEGORIES WAS RAISED IN OCTOBER TO 195 MTOPS FROM 125 MTOPS THE 500MTOPS LEVEL COVERS THE MOST POWERFUL PERSONAL COMPUTERS AND SOME MAINFRAMES WHILE THE 1000MTOPS LEVEL COVERS MOST TYPES OF ADVANCED WORKSTATIONS AND MANY MAINFRAMES YESTERDAY'S ACTIONS DON'T APPLY TO COUNTRIES RESTRICTED BY THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS EARLIER THIS YEAR COCOM DECIDED TO EASE CONTROLS FOR COMPUTERS OPERATING UP TO 260 MTOPS MUCH LESS THAN THE 500MTOPS LEVEL THE CLINTON ADMINISTRATION WAS SEEKING COCOM WHICH INCLUDES JAPAN AUSTRALIA AND NORTH ATLANTIC TREATY ORGANIZATION MEMBERS EXCEPT ICELAND RESTRICTS EXPORTS TO SUCH NATIONS AS CHINA AND THE FORMER SOVIET REPUBLICS AS PART OF ITS OVERALL REVIEW THE ADMINISTRATION YESTERDAY INTRODUCED AS EXPECTED LEGISLATION AIMED AT REDUCING THE AMOUNT OF TIME IT TAKES FOR THE ADMINISTRATION TO CONSIDER APPLICATIONS FOR EXPORT LICENSES THAT LEGISLATION DIDN'T GO OVER AS WELL AS THE NEWS ABOUT THE EASED COMPUTER EXPORT RESTRICTIONS A BAND OF HIGHTECH COMPANIES AND TRADE ASSOCIATIONS TRASHED THE LEGISLATION AS DEFICIENT THE LICENSING REQUIREMENT EMERGED DURING THE COLD WAR AS AN EFFORT TO CURB THE SALE OF DUALUSE GOODS THAT COULD BE USED FOR BOTH MILITARY AND CIVILIAN PURPOSES THE GOAL THEN WAS TO STOP SUCH SHIPMENTS TO COMMUNIST COUNTRIES INTRODUCTION OF THE LEGISLATION HAS BEEN DELAYED SINCE THE FALL AS VARIOUS ADMINISTRATION AGENCIES HAVE BATTLED OVER HOW MUCH TO LIBERALIZE EXPORT CONTROLS STATE AND DEFENSE DEPARTMENT OFFICIALS PUSHED TO KEEP TIGHT CONTROLS FOR NATIONALSECURITY REASONS COMMERCE DEPARTMENT OFFICIALS WANTED TO EASE CONTROLS SO US COMPANIES WOULDN'T LOSE BUSINESS THE ISSUE WAS SO CONTENTIOUS PRESIDENT CLINTON HAD TO SETTLE A QUESTION OF WHEN TO LIMIT THE USE OF UNILATERAL CONTROLS SOME KEY US OFFICIALS WEREN'T NOTIFIED OF THE DECISION UNTIL YESTERDAY MORNING JUST HOURS BEFORE THE UNVEILING OF THE LEGISLATION A US OFFICIAL SAID MR CLINTON OPTED FOR LIFTING UNILATERAL EXPORT CONTROLS IF THEY MEET CERTAIN CONDITIONS THEY FAIL TO STOP THE TARGETED COUNTRY FROM CURBING UNDESIRED POLICIES OTHER COUNTRIES DON'T GO ALONG WITH THE CONTROLS MULTILATERALLY AND THE TARGETED COUNTRY GETS THE GOODS FROM NONUS SOURCES THE OFFICIAL SAID THE REVIEWS WOULDN'T APPLY IF THE GOODS CONTRIBUTE TO HUMANRIGHTS ABUSES TERRORISM PROLIFERATION OF WEAPONS OF MASSDESTRUCTION OR REGIONAL INSTABILITY 9402250087 940225 TECHNOLOGY & HEALTH NYNEX AMERITECH ARE SAID TO CHOOSE DIGITAL TO SUPPLY VIDEOSERVER SYSTEMS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL UNFAZED BY THE COLLAPSE OF THE BELL ATLANTIC CORPTELECOMMUNICATIONS INC ACQUISITION AGREEMENT OTHER BELL COMPANIES ARE PUSHING AHEAD WITH PLANS TO BUILD PARTS OF THE INFORMATION SUPERHIGHWAY ON THEIR OWN INDUSTRY INSIDERS SAID YESTERDAY THAT TWO MORE REGIONAL TELEPHONE COMPANIES NYNEX CORP AND AMERITECH CORP HAVE PICKED A SUPPLIER FOR VIDEOSERVER EQUIPMENT THE SYSTEMS THAT WILL DIGITIZE STORE AND DISTRIBUTE MOVIES AND OTHER INTERACTIVE FARE OVER PHONE LINES THE SURPRISE WINNER IS DARK HORSE DIGITAL EQUIPMENT CORP WHICH HAD WON ONLY ONE OTHER VIDEOSERVER CONTRACT WITH U S WEST INC NYNEX IS EXPECTED TO ANNOUNCE NEW PLANS SOON FOR A TEST OF VIDEOONDEMAND SERVICES IN NEW YORK PORTLAND MAINE AND EASTERN MASSACHUSETTS PENDING REGULATORY APPROVALS DIGITAL'S ROLE WILL BE TO PROVIDE THE COMPUTER AND DATASTORAGE SYSTEMS FOR THESE TRIALS DIGITAL ALSO HAS WON A VIDEOSERVER CONTRACT WITH AMERITECH THE CHICAGOBASED BABY BELL PEOPLE CLOSE TO THE DISCUSSIONS SAY DIGITAL HAS APPARENTLY DISPLACED INTERNATIONAL BUSINESS MACHINES CORP WHICH WAS EXPECTED TO WIN THE ORDER DIGITAL AND U S WEST THE COLORADOBASED BELL COMPANY ARE PROCEEDING WITH A VIDEOONDEMAND TRIAL BEGINNING THIS SPRING IN OMAHA NEB IN CALIFORNIA PACIFIC TELESIS CORP HAS TEAMED UP WITH HEWLETTPACKARD CO FOR VIDEO SERVERS THE COMPANY SAID ITS PLANS FOR A HIGHCAPACITY INTERACTIVE NETWORK ARE UNAFFECTED BY THE BELL ATLANTICTCI BREAKUP NYNEX AND AMERITECH ECHOED THAT SENTIMENT THE SEVEN BELLS ARE AMONG THE LARGEST POTENTIAL BUYERS OF VIDEO SERVERS AS EACH UPGRADES ITS NETWORK TO HANDLE INTERACTIVE VIDEO PROGRAMMING HARDWARE AND SOFTWARE COMPANIES ARE SCRAMBLING FOR A PIECE OF THIS EMERGING MARKET THOUGH ESTIMATES OF ITS SIZE VARY WIDELY DATAQUEST INC A MARKET RESEARCHER SAYS IT COULD GROW TO AS MUCH AS 51 BILLION IN THREE YEARS THOSE IN THE FRAY INCLUDE IBM AMERICAN TELEPHONE & TELEGRAPH CO HEWLETTPACKARD ORACLE CORP AND SILICON GRAPHICS INC A DIGITAL SPOKESMAN WOULDN'T COMMENT ON PENDING CONTRACTS NYNEX CONFIRMED THAT DIGITAL HAS WON SERVER CONTRACTS BUT WOULDN'T DETAIL THE NEW YORK MASSACHUSETTS AND MAINE VIDEOSERVICE ROLLOUTS AN AMERITECH SPOKESMAN WOULD SAY ONLY THAT WE'RE IN THE FINAL STAGES OF NEGOTIATION WE EXPECT TO MAKE AN ANNOUNCEMENT IN THE NEAR FUTURE THE AMERITECH SPOKESMAN ADDED HOWEVER THAT A TRIAL OF VIDEOSERVER TECHNOLOGY RUNNING ON AN IBM MAINFRAME WHICH BEGAN IN LATE 1992 AND WAS WIDELY REPORTED HAS CONCLUDED HE WOULDN'T DISCUSS THE TEST'S RESULTS CALLING IT A LEARNING EXPERIENCE IN ARMONK NY AN IBM SPOKESMAN DECLINED TO COMMENT THE NEW BUSINESS IS A BOOST FOR DIGITAL AND ITS NEW PRODUCT LINE BUILT AROUND THE HIGHSPEED ALPHA COMPUTER CHIP WHICH DIGITAL SAYS IS UNIQUELY SUITED TO THE RAPID COMPRESSION AND TRANSMISSION OF LARGE AMOUNTS OF DATA REQUIRED IN VIDEO SERVERS BUT BARRY F WILLMAN AN ANALYST AT GOLDMAN SACHS & CO SAID THAT THE LIKELY CONTRACTS WILL HAVE LITTLE NEARTERM IMPACT ON THE COMPANY'S FINANCIAL PICTURE IT'S AN IMPORTANT POSITIVE BENEFIT FOR THE LONG TERM BUT RESTORING PROFITABLITY IS MORE IMPORTANT RIGHT NOW DIGITAL STRUGGLING WITH A WRENCHING TRANSITION TO THE NEW ALPHA PRODUCT LINES REPORTED A 72 MILLION LOSS OR 53 CENTS A SHARE ON REVENUE OF 325 BILLION IN THE FISCAL SECOND QUARTER ENDED JAN 1 JOE DEMAURO A NYNEX PRODUCT DEVELOPER SAID THE COMPANY PICKED DIGITAL FOR ITS INITIAL TRIALS ON THE STRENGTH OF ITS SCALABLE DESIGN AND THE VERY ATTRACTIVE WAY IT HANDLES STORAGE OF VIDEO DATA YOU CAN START SMALL AND GROW AS LARGE AS YOU NEED AS YOUR REQUIREMENTS GROW HE SAYS THE SYSTEM ALSO HAS A TIERED STORAGE ARCHITECTURE THAT ALLOWS THE MOSTPOPULAR MOVIES TO BE HELD IN INSTANTLY ACCESSIBLE MEMORY LESSPOPULAR MOVIES TO BE STORED ON HARDDISK ARRAYS AND A LARGER LIBRARY OF FILMS IN A TAPE LIBRARY 9402250086 940225 FOREIGN EXCHANGE DOLLAR TUMBLES ACROSS A BROAD FRONT AFTER FED MAKES BID TO BOOST LIQUIDITY BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK US ECONOMIC DATA THAT SHONE INITIALLY BUT FADED SOMEWHAT LATER COMBINED WITH A SURPRISE FEDERAL RESERVE MOVE TO ENHANCE LIQUIDITY SENT THE DOLLAR TUMBLING LATE YESTERDAY AGAINST EUROPEAN CURRENCIES THE DOLLAR ALSO FELL AGAINST THE YEN AS RUMORS OF AN EXCHANGERATE ACCORD BETWEEN THE US AND JAPAN WERE DENIED BY OFFICIALS OF BOTH NATIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17172 MARKS DOWN FROM 17284 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10495 YEN DOWN FROM 10575 YEN STERLING WAS TRADING AT 14855 UP FROM 14785 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10488 YEN AND AT 17168 MARKS US DURABLEGOODS ORDERS ROSE A HEFTY 37 IN JANUARY THE SIXTH CONSECUTIVE MONTHLY RISE AND FAR ABOVE MARKET EXPECTATIONS OF A 1 INCREASE THE DATA INITIALLY INSPIRED A RALLY IN THE DOLLAR WHICH WAS BID AS HIGH AS 17410 MARKS WITHIN MINUTES OF THE NEWS BEING RELEASED TRADERS CITING FED CHAIRMAN ALAN GREENSPAN'S TESTIMONY EARLIER THIS WEEK THAT DURABLE GOODS WOULD BE A KEY INDICATOR OF INFLATIONARY PRESSURES BELIEVED THE NUMBERS MIGHT TRIGGER THE SECOND RATE BOOST BY THE FED THIS MONTH BUT THOSE EXPECTATIONS BEGAN TO UNRAVEL WHEN A CLOSER LOOK AT THE DATA SHOWED THE SHARP RISE IN ORDERS TO BE DUE ALMOST ENTIRELY TO THE VOLATILE TRANSPORTATION SECTOR INDEED WITH TRANSPORTATION EXCLUDED DURABLEGOODS ORDERS HAD RISEN ONLY A PALTRY 03 PEOPLE BOUGHT THE DOLLAR ONCE THEY SAW THE BLIP UPWARD SAID VICTOR POLCE FOREIGNEXCHANGE MANAGER OF COMMERZBANK IN NEW YORK BUT WHEN YOU DUG INTO THE NUMBER A LITTLE DEEPER THERE WAS MUCH LESS THAN MEETS THE EYE HE ADDED MANY TRADERS HOWEVER REMAINED HESITANT TO OVERLY UNWIND THEIR LONG DOLLAR POSITIONS SAID LIZBETH GOLDBERG ASSISTANT VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK TRADERS WERE LOOKING AT IT THROUGH GREENSPAN'S EYES SHE SAID NOTING THE DATA COULD BE READ AS A WARNING ON INFLATION AND AS REASON ENOUGH TO BOOST THE TARGET FOR FED FUNDS CURRENTLY AT 3 1/4 LATER YESTERDAY THE FED SENT OUT THE EXACT OPPOSITE MESSAGE ANNOUNCING FOURDAY SYSTEM REPURCHASE AGREEMENTS THE MOVE ADDED LIQUIDITY TO THE US BANKING SYSTEM AND TRADERS TOOK IT AS A SIGNAL THAT THE FED WOULDN'T TIGHTEN MONETARY POLICY SOON WITH THAT THE DOLLAR DROPPED TO AN INTRADAY LOW OF 17145 MARKS ABOUT MIDAFTERNOON IN NEW YORK AND LOWS AGAINST THE SWISS FRANC AND STERLING WERE HIT SOON AFTER THE DOLLAR THEN SCRATCHED ITS WAY TO HIGHER GROUND ON SHORTCOVERING AND BARGAINHUNTING TRADERS SAID PEOPLE WERE A LITTLE OVEREXCITED ON DURABLE GOODS AND WERE READING TOO MUCH INTO GREENSPAN'S COMMENTS SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER FOR THE LONGTERM CREDIT BANK OF JAPAN IN NEW YORK BUT ANY THOUGHTS THAT DURABLE GOODS WOULD TRIGGER A FED FUNDS RATE BOOST WERE DISPELLED WHEN THE FED CAME IN AND ADDED RESERVES HE SAID MR PETTIT NOTED THAT IT WOULD HAVE BEEN OUT OF CHARACTER FOR THE FED TO TAKE A SINGLE MONTH'S DURABLEGOODS NUMBER BECAUSE IT IS SUCH A VOLATILE FIGURE MEANWHILE THE DOLLAR LOST GROUND AGAINST THE YEN AFTER OFFICIALS OF THE US AND JAPAN DISCREDITED A JAPANESE NEWS REPORT THAT THE TWO NATIONS HAD AGREED TO SUPPORT THE DOLLAR AT 110 YEN RUMORS OF SUCH AN ACCORD HAD BEGUN TO CIRCULATE IN FINANCIAL MARKETS EARLY WEDNESDAY 9402250085 940225 INDONESIA'S SALIM GROUP IS OPTIMISTIC ABOUT PROSPECTS FOR POSTSUHARTO ERA BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA IF INDONESIA'S TRANSITION TO THE POSTSUHARTO ERA PROVES TURBULENT FEW BUSINESS GROUPS WOULD HAVE MORE TO LOSE THAN SALIM GROUP A GIANT IN FOOD FINANCE AND CEMENT SALIM HAS BUILT ITSELF INTO SOUTHEAST ASIA'S BIGGEST CONGLOMERATE BY EXPLOITING CLOSE CONNECTIONS WITH PRESIDENT SUHARTO AND SKILLFULLY RIDING INDONESIA'S BOOM IF THE FAMILY OWNERS ARE NERVOUS ABOUT INDONESIA'S POLITICAL PROSPECTS HOWEVER THEY ARE KEEPING IT TO THEMSELVES ANTHONY SALIM PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE GROUP SAID IN A RARE INTERVIEW THAT HE BELIEVES INDONESIA'S POLITICAL SUCCESSION WILL BE SMOOTH I'M OPTIMISTIC SAID MR ANTHONY WHO GAVE THE INTERVIEW TO THE ASIAN WALL STREET JOURNAL DURING A PLANE RIDE TO BATAM ISLAND WHERE SALIM WAS OPENING A PLANT TO CONVERT PALM OIL INTO AN INGREDIENT FOR SOAP AND COSMETICS WHY IS EVERYBODY PESSIMISTIC MR ANTHONY AGREED THAT SUCCESSION WILL BE A DIFFICULT TEST BUT ADDED WE ALREADY GO THROUGH SO MANY TESTS INDONESIA HAS A SYSTEM THAT SHOULD WORK HE ARGUED THE INDONESIAN CONSTITUTION PROVIDES FOR THE VICE PRESIDENT TO TAKE OVER THE REST OF THE TERM IF THE PRESIDENT DIES IN OFFICE AFTER THE TERM A 1000MEMBER ASSEMBLY WOULD SELECT A PRESIDENT FOR THE NEXT FIVEYEAR TERM BUT THAT MECHANISM HAS NEVER BEEN TESTED INDONESIA HAS CHANGED LEADERS ONLY ONCE IN THE 48 YEARS SINCE INDEPENDENCE AND THAT WAS ANYTHING BUT SMOOTH HUNDREDS OF THOUSANDS OF PEOPLE WERE KILLED DURING TURMOIL THAT FOLLOWED A COMMUNISTSUPPORTED COUP ATTEMPT IN 1965 SUHARTO THEN A GENERAL CRUSHED THE REVOLT AND LATER EASED PRESIDENT SUKARNO OUT OF OFFICE WILL SALIM REMAIN AS STRONG IN POSTSUHARTO INDONESIA AS IT IS TODAY MR ANTHONY SAID THE GROUP'S POSITION DEPENDS ON WHETHER SALIM IS JUDGED USEFUL AND REQUIRED FOR THE COUNTRY HE IMPLIED THAT SALIM WILL PASS THAT TEST THE ECONOMY AND THE PLAYERS OF THE ECONOMY ARE INTERTWINED YOU CAN'T SEPARATE THEM FOR NOW SALIM IS BY FAR THE BIGGEST PRIVATE PLAYER IN THE INDONESIAN ECONOMY THE GROUP MAKES MORE THAN HALF THE COUNTRY'S CEMENT AND ABOUT 90 OF ITS INSTANT NOODLES SALIM ALSO OWNS THE BIGGEST PRIVATE BANK PT BANK CENTRAL ASIA AS WELL AS HUNDREDS OF OTHER COMPANIES AND TENS OF THOUSANDS OF HECTARES OF PALMOIL PLANTATIONS BUSINESSMEN SAY SALIM'S STRATEGY HAS BEEN TO BECOME SO BIG IN KEY INDUSTRIES NOTABLY FOOD AND CEMENT THAT ANY FUTURE INDONESIAN LEADER WILL RELY ON THE GROUP TO HELP KEEP THE COUNTRY FUNCTIONING IT'S A LOGICAL STRATEGY AND DONE SMARTLY SAYS A SENIOR INDONESIAN BANKER OTHER GROUPS WITH WEAKER LINKS TO SUHARTO MAY FADE WHEN HE'S NOT AROUND BUT SALIM SHOULD BE SAFE PART OF THE STRATEGY TO ENSURE SAFETY ANALYSTS SAY HAS BEEN TO TRANSFER MORE OF SALIM'S ASSETS INTO PUBLICLY TRADED COMPANIES SALIM'S MAIN CEMENT COMPANY PT INDOCEMENT TUNGGAL PRAKARSA LISTED SHARES ON THE JAKARTA STOCK EXCHANGE IN 1989 A LISTING OF THE INDOFOOD GROUP WHICH INCLUDES NOODLE FACTORIES IS EXPECTED LATER THIS YEAR THE 44YEAROLD MR ANTHONY IS THE YOUNGEST OF THE THREE SONS OF 77YEAROLD LIEM SIOE LIONG SALIM'S FOUNDER AND CHAIRMAN MR LIEM TRACES HIS TIES WITH MR SUHARTO BACK TO THE 1950S WHEN MR SUHARTO WAS AN ARMY LIEUTENANT COLONEL WHOSE UNIT BOUGHT FOOD FROM MR LIEM A PETTY TRADER WHO HAD MIGRATED TO CENTRAL JAVA FROM CHINA MR LIEM WHOSE INDONESIAN NAME IS SOEDONO SALIM HAS PROSPERED SINCE MR SUHARTO BECAME PRESIDENT IN 1967 THE PRESIDENT'S FOSTER BROTHER SUDWIKATMONO IS A LONGTIME BUSINESS PARTNER AND PRESIDENTDIRECTOR OF INDOCEMENT PARLAYING ITS POLITICAL TIES INTO OPPORTUNITIES AND PURSUING THEM VIGOROUSLY WITH PROFESSIONAL MANAGERS SALIM HAS BUILT UP OPERATIONS IN DOZENS OF COUNTRIES EXACTLY HOW BIG THE GROUP IS REMAINS A MYSTERY ASKED TO COMMENT ON AN ESTIMATE THAT 1993 SALES TOTALED AT LEAST 9 BILLION MR ANTHONY REPLIED I GUESS SO BUT WE DON'T COUNT IT AND WE DON'T WANT TO COUNT MR ANTHONY DIDN'T DENY THAT SALIM BENEFITS FROM ITS POLITICAL CONNECTIONS BUT IN A STATEMENT SOME JAKARTA BUSINESS PEOPLE WOULD DISPUTE HE ASSERTED THAT A LOT OF PEOPLE ARE AS CLOSE AS US TO THE LEADERSHIP ABOUT 35 OF GROUP REVENUE COMES FROM OUTSIDE INDONESIA MR ANTHONY SAID WILL THAT PERCENTAGE GROW THE SEED HAS BEEN PLANTED HE SAID THE FRUIT WILL GROW EVEN THOUGH MANY OTHER COUNTRIES ARE OPENING UP FOR INVESTMENT MR ANTHONY SAID INDONESIA REMAINS THE BEST PLACE FOR SALIM IF WE'RE AFRAID OF INDONESIAN INVESTMENT WHY ARE WE DOING PLANTATIONS HERE HE ASKED I'M PLANTING EVERY DAY IT'S THE LONGEST RETURN OF ALL BUSINESSES AND YOU CAN'T MOVE THE TREES 9402250084 940225 RJR TO ISSUE PREFERRED SHARES FOR 2 BILLION MOVE SEEN AS A PRECURSOR TO MERGER OR SEPARATING TOBACCO AND FOOD LINES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL RJR NABISCO HOLDINGS CORP SAID IT PLANS TO RAISE 2 BILLION IN A PREFERREDSTOCK OFFERING IN A MOVE WIDELY SEEN AS THE PRECURSOR TO A SEPARATION OF RJR'S FOOD AND TOBACCO BUSINESSES OR A MERGER WITH ANOTHER CONSUMERPRODUCTS GIANT RJR SAID THAT IT IS ACTIVELY REVIEWING VARIOUS SIGNIFICANT CORPORATE TRANSACTIONS INCLUDING MERGERS DIVESTITURES AND SPINOFFS IT IS LIKELY THAT THE COMPANY'S TOBACCO AND FOOD BUSINESSES WOULD BE SEPARATED SHOULD CERTAIN OF THE FOREGOING TRANSACTIONS BE CONSUMMATED THE COMPANY SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION RJR ALSO SAID THAT IT COULD USE THE 2 BILLION IT RAISES IN THE STOCK OFFERING TO MAKE AN ACQUISITION IN RECENT MONTHS RJR HAS BEEN SAID TO BE DISCUSSING MERGERS WITH BRITISH TOBACCO GIANT ROTHMANS INTERNATIONAL PLC OR HANSON PLC RJR WAS ALSO SAID TO BE INTERESTED IN ACQUIRING BORDEN INC YESTERDAY BORDEN DECLINED COMMENT AND ROTHMANS AND HANSON OFFICIALS COULDN'T BE REACHED PEOPLE CLOSE TO RJR SAY THE COMPANY HAS EVALUATED SEVERAL HUNDRED PROPOSALS FOR VARIOUS DEALS IN THE PAST YEAR AND THE COMPANY'S STATEMENT YESTERDAY IS LIKELY TO GENERATE A FRESH ROUND OF PROPOSALS FROM INVESTMENT BANKERS IN AN INTERVIEW CHARLES M HARPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RJR SAID THIS ADDITIONAL FINANCIAL FLEXIBILITY IMPACTS ON A NUMBER OF THE MODELS THAT WE HAVE RUN BUT HE STRESSED THAT THERE IS NO SPECIFIC TRANSACTION CURRENTLY ON THE TABLE THE COMPANY'S LARGE DEBT LOAD HAS MADE POTENTIAL MERGER PARTNERS UNCOMFORTABLE AND ALSO MADE IT DIFFICULT FOR THE CONCERN TO USE ITS STOCK TO PAY FOR AN ACQUISITION ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY ANY DEAL UNDER CONSIDERATION WOULD BE MORE FEASIBLE IF THE 2 BILLION EQUITY OFFERING WERE USED TO IMPROVE THE COMPANY'S BALANCE SHEET RJR'S BIGGEST SHAREHOLDER KOHLBERG KRAVIS ROBERTS & CO HAS BEEN EXPECTED TO ATTEMPT TO CASH OUT OF ITS INVESTMENT THIS YEAR AND THE STOCK OFFERING INDICATES A HEIGHTENED DESIRE TO BOLSTER THE COMPANY'S VALUE KKR DECLINED COMMENT YESTERDAY WHILE RJR'S SHARES HAVE RISEN CONSIDERABLY IN THE PAST SIX MONTHS OVERALL THE RJR BUYOUT HAS BEEN A DISAPPOINTMENT TO KKR SO FAR IN MAY RJR IS EXPECTED TO RETIRE 17 BILLION IN HIGHINTEREST DEBT THAT CONTAINS RESTRICTIVE COVENANTS MAKING A SEPARATION OF THE COMPANY DIFFICULT LAST YEAR AN ATTEMPT TO CREATE A SEPARATE CLASS OF STOCK TIED TO RJR'S NABISCO FOOD BUSINESS FAILED WHEN THE PRICES OF CONSUMERPRODUCTS STOCKS TUMBLED EACH SHARE OF THE 2 BILLION PREFERRED EQUITY REDEMPTION CUMULATIVE STOCK OFFERING PERCS CONVERTS INTO ONE SHARE OF RJR COMMON STOCK IN THREE YEARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY RJR'S SHARES FELL 375 CENTS OR 51 TO CLOSE AT 7 AS INVESTORS FOCUSED ON THE DILUTIVE IMPACT OF THE NEW PREFERREDSTOCK OFFERING RJR OWNS SOME OF THE COUNTRY'S BESTKNOWN BRANDS INCLUDING CAMEL CIGARETTES OREO COOKIES AND LIFE SAVERS CANDY IN 1993 RJR'S EARNINGS WERE CRUSHED BY THE COSTLY CIGARETTE PRICE WAR IN THE US A RESTRUCTURING CHARGE RELATED TO A COSTCUTTING PROGRAM RESULTED IN A 145 MILLION LOSS FOR THE COMPANY LAST YEAR SOME WALL STREET ANALYSTS SAID THE PREFERREDSTOCK OFFERING MAY FACILITATE A SPINOFF OF THE TOBACCO COMPANY THIS TRANSACTION LOOKS LIKE IT COULD BE AN EFFORT BY KKR TO MONETIZE ITS INVESTMENT IN THE TOBACCO COMPANY SAID MAX HOLMES HIGHYIELD BOND STRATEGIST AT SALOMON BROTHERS THE WAY THIS DEAL IS STRUCTURED THE OWNER OF THESE PERCS COULD END UP AS EQUITY OWNERS OF THE TOBACCO COMPANY IN ITS SEC FILING RJR NOTES THAT IF THE COMPANY IS SEPARATED THE PERCS COULD BE CONVERTED INTO SHARES IN THE TOBACCO BUSINESS THEY ARE TELLING YOU IN RED LETTERS THAT YOU COULD END UP THE PROUD OWNERS OF A VERY LEVERAGED TOBACCO COMPANY SAID MR HOLMES ONE PROPOSAL THAT HAS GOTTEN CONSIDERATION IN RECENT MONTHS IS A MORGAN STANLEY & CO PROPOSAL KNOWN AS PROJECT FLOWER WHICH CONTEMPLATED A TWOSTEP TRANSACTION SPLITTING RJR'S NABISCO FOOD BUSINESS CODE NAME MILK FROM TOBACCO HONEY AND THEN MERGING RJR'S TOBACCO BUSINESS WITH BRITISH TOBACCO GIANT ROTHMANS MORGAN STANLEY CRAFTED RJR'S FAILED STOCK DEAL LAST YEAR AND HAS CLOSE TIES TO KKR MORGAN ALONG WITH SMITH BARNEY SHEARSON INC IS RUNNING THE PERCS OFFERING RJR AND MORGAN STANLEY WON'T DISCUSS PROJECT FLOWER OR VARIOUS OTHER PROPOSALS A SPOKESWOMAN FOR ROTHMANS SAID LAST MONTH THAT THE COMPANY WON'T COMMENT ON RUMOR OR SPECULATION INVESTMENT BANKERS HAVE ALSO SUGGESTED JAPAN TOBACCO INC AND BA T INDUSTRIES PLC IN LONDON AS POTENTIAL ACQUIRERS OF RJR'S TOBACCO BUSINESS JAPAN TOBACCO SAID IT HAD NO PLANS TO BUY THE BUSINESS BA T OFFICIALS COULDN'T BE REACHED YESTERDAY BUT LAST MONTH DENIED ANY INTEREST 9402250083 940225 HONDA UNIT OFFICIALS FACE PROBE OF DEALERS' CHARGES CONCORD NH A GRAND JURY IS INVESTIGATING ALLEGATIONS THAT CURRENT AND FORMER AMERICAN HONDA MOTOR CO EXECUTIVES ACCEPTED BRIBES FROM DEALERS SEEKING SPECIAL TREATMENT FROM THE AUTO MAKER ACCORDING TO THE US ATTORNEY GENERAL'S OFFICE OF THE DISTRICT OF NEW HAMPSHIRE PROSECUTORS WOULDN'T COMMENT ON WHETHER FEDERAL PROSECUTORS ARE PREPARED TO BRING CHARGES AGAINST THE EXECUTIVES THERE'S NOT MUCH THAT PROSECUTORS ARE PERMITTED TO SAY SAID MICHAEL CONNOLLY ASSISTANT US ATTORNEY AMERICAN HONDA IS COOPERATING WITH THE INVESTIGATION THE ALLEGATIONS OF CORRUPTION IN HONDA'S MARKETING OPERATIONS SURFACED IN A LAWSUIT FILED IN 1989 BY A CONCORD NH ACURA DEALER THE DEALER CHARGED THAT HONDA IGNORED HIS AILING FRANCHISE WHILE GIVING SPECIAL TREATMENT TO A NEARBY ACURA DEALER WHO BRIBED THE DISTRICT SALES MANAGER WITH A CAR AND MONEY ACURA IS HONDA'S LUXURY DIVISION THE ALLEGATIONS OF BRIBERY AND CORRUPTION HAVE SPREAD AND FEDERAL PROSECUTORS ARE CONDUCTING A NATIONWIDE INVESTIGATION HONDA A UNIT OF JAPAN'S HONDA MOTOR CO WOULDN'T COMMENT ON THE PROBE 9402250082 940225 TECHNOLOGY & HEALTH SIEMENS UNIT IN US TO HALT SOME OUTPUT TO CORRECT PROBLEMS WASHINGTON SIEMENS MEDICAL SYSTEMS INC AGREED TO STOP PRODUCING MEDICAL DEVICES AT THREE FACILITIES UNTIL THE COMPANY CORRECTS MANUFACTURING PROBLEMS SIEMENS WAS GETTING COMPLAINTS AND BASICALLY IGNORING THEM SAID DON MCLEARN A SPOKESMAN FOR THE FOOD AND DRUG ADMINISTRATION THE COMPANY BASED IN ISELIN NJ IS A SUBSIDIARY OF THE MULTINATIONAL COMPANY SIEMENS AG BASED IN GERMANY THE US COMPANY SIGNED A CONSENT DECREE STATING THAT SUCH DEVICES AS HEARING AIDS ULTRASOUND MONITORS PACEMAKERS AND PATIENT MONITORS WERE IMPROPERLY MADE AND THAT SIEMENS DIDN'T ADEQUATELY ADDRESS CONSUMER COMPLAINTS ACCORDING TO THE FDA THE AGENCY SAID THE COMPANY ALSO HAD INADEQUATE QUALITYASSURANCE PROGRAMS SIEMENS MAINTAINED THAT VIOLATIONS DIDN'T INVOLVE THE SAFETY AND EFFECTIVENESS OF ITS PRODUCTS AND THAT THE PROBLEMS STEM MAINLY FROM PROCEDURAL AND RECORDKEEPING ISSUES MR MCLEARN SAID THAT BY SIGNING THE DECREE HOWEVER SIEMENS IS TAKING FULL RESPONSIBILITY FOR THE PROBLEMS THE FDA FOUND IN THE MANUFACTURING PROCEDURES THE THREE SIEMENS FACILITIES IN QUESTION ARE IN CONCORD CALIF DANVERS MASS AND ISSAQUAH WASH THE COMPANY ALSO WAS REQUIRED TO CORRECT PROBLEMS AT FACILITIES IN SYLMAR CALIF AND PISCATAWAY NJ AND TWO FOREIGN SITES IN ADDITION TO CORRECTING THOSE ACCORDING TO THE DECREE SIEMENS HAS 18 MONTHS IN WHICH TO ENSURE THE SAFETY OF THE REST OF ITS FOREIGN OPERATIONS TO THE FDA WE ARE HOPEFUL OF A SPEEDY RESUMPTION OF SHIPMENTS FROM THE AFFECTED FACILITIES SIEMENS SAID 9402250081 940225 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS WHAT INTERNATIONAL LAW FIRM RECENTLY HANDLED A 305 BILLION TRANSACTION NEARLY SINGLEHANDEDLY AND IS WORKING ON ONE OF THE BIGGEST PRICEFIXING CASES IN A LONG TIME GENERAL ELECTRIC CO'S 440LAWYER INHOUSE LAW DEPARTMENT WHICH TECHNICALLY ISN'T A LAW FIRM AT ALL INHOUSE STATUS THOUGH HASN'T PREVENTED THE GE TROOPS LED BY BENJAMIN W HEINEMAN JR FROM DEVELOPING A REPUTATION AS ONE OF THE MOST FORMIDABLE LEGAL TEAMS ANYWHERE GE WILL NEED ITS INHOUSE STRENGTH ALONG WITH SUBSTANTIAL OUTSIDE HELP FROM FORMER IRANCONTRA LEAD TRIAL PROSECUTOR DAN K WEBB AS IT EMBARKS ON ITS DEFENSE AGAINST FEDERAL CRIMINAL CHARGES THAT IT CONSPIRED WITH DE BEERS CENTENARY AG TO FIX PRICES IN THE INDUSTRIALDIAMOND MARKET BOTH COMPANIES HAVE SAID THEY ARE INNOCENT MR HEINEMAN WAS DEEPLY INVOLVED IN THE COMPANY'S EFFORTS TO DETER THE FEDERAL INDICTMENT THAT CAME LAST WEEK AS PREVIOUSLY REPORTED IN THIS NEWSPAPER MR HEINEMAN PLACED A LASTMINUTE TELEPHONE CALL TO WEBSTER HUBBELL ASSOCIATE ATTORNEY GENERAL IN WHAT TURNED OUT TO BE A FUTILE ATTEMPT TO HOLD UP THE CHARGES THE EXECUTIVE SAYS HE AND AN INHOUSE TEAM OF LAWYERS WILL CONTINUE TO WORK ON THE DEFENSE HE ADDS AT THIS POINT I STILL THINK IT'S IMPORTANT IN HIGHPROFILE LITIGATION TO HAVE A NATIONALLY RECOGNIZED TRIAL LAWYER SUCH AS MR WEBB A PARTNER AT CHICAGO'S WINSTON & STRAWN TO LEAD THE COURTROOM DEFENSE BUT IF EVER THERE WAS A COMPANY THAT COULD HANDLE MOST OF ITS LEGAL WORK WITHOUT THE HELP OF OUTSIDE LAW FIRMS GE IS IT MR HEINEMAN HAS LABORED SINCE ARRIVING AT GE SIX YEARS AGO TO UPGRADE THE TALENT OF THE DEPARTMENT AND MORE THAN HALF OF THE COMPANY'S LAWYERS HAVE BEEN REPLACED SINCE HIS ARRIVAL PRICEY HIRES FROM THE PRIVATE BAR INCLUDE FORMER ARNOLD & PORTER PARTNER RONALD A STERN RICHARD COTTON NOW GENERAL COUNSEL OF GE'S NATIONAL BROADCASTING CO UNIT WHO WAS LURED FROM NEW YORK'S DEWEY BALLANTINE BUSHBY PALMER & WOOD AND JOHN SAMUELS A TAX EXPERT ALSO FORMERLY WITH DEWEY TO SNARE THEM MR HEINEMAN PAID LAWFIRM MARKET RATES OR BETTER IN SOME CASES DOUBLING LAWYERS' PREVIOUS SALARIES ACCORDING TO PEOPLE FAMILIAR WITH GE SALARIES MOST OF THE PRIOR GE STAFFERS HAD COME UP THROUGH THE CORPORATE RANKS THE TRADITIONAL CAREER PATH OF INHOUSE LAWYERS MR HEINEMAN WHOSE OWN DAZZLING RESUME LISTS A RHODES SCHOLARSHIP A SUPREME COURT CLERKSHIP FORMER GOVERNMENT POSTS AND A PRIVATE LAW PARTNERSHIP EARNS 12 MILLION A YEAR THAT MAKES THE 50YEAROLD LAWYER THE COUNTRY'S SECOND HIGHEST PAID CORPORATE GENERAL COUNSEL AFTER PETER HAJE OF TIME WARNER INC ACCORDING TO A SURVEY BY THE TRADE JOURNAL OF COUNSEL MR HEINEMAN SAYS THE INVESTMENTS IN SALARY AND RECRUITING TIME HAVE PAID OFF BECAUSE THE COMPANY HAS BEEN ABLE TO BRING MUCH MORE WORK INSIDE FOR EXAMPLE WHEN GE SOLD ITS AEROSPACE BUSINESS TO MARTIN MARIETTA CORP IN THE 305 BILLION DEAL LAST YEAR GE'S INHOUSE LAWYERS HANDLED SO MUCH OF THE WORK THAT THE COMPANY NEEDED ONLY TWO OUTSIDE LAWYERS PARTNER DENNIS HERSCH OF NEW YORK'S DAVIS POLK & WARDWELL AND AN ASSOCIATE THEIR TOTAL FEE WAS SIX FIGURES NOT SEVEN AS MIGHT BE EXPECTED FOR SUCH A LARGE DEAL MR HEINEMAN SAYS HE SAYS HIS GOAL HAS BEEN TO CREATE AN INTERNATIONAL LAW FIRM THAT COULD BASICALLY DO ALMOST EVERYTHING BUT IN MORE THAN A FEW PRICKLY CASES GE HAS STILL FELT THE NEED TO GO OUTSIDE FOR EXAMPLE THE COMPANY RETAINED THE WASHINGTON LAW FIRM WILMER CUTLER & PICKERING WHEN GE PLEADED GUILTY IN 1992 TO CHARGES THAT A GE EMPLOYEE AND AN ISRAELI GENERAL CONSPIRED TO DIVERT US FUNDS FOR PERSONAL USE AND FOR ISRAELI PROJECTS NOT AUTHORIZED BY THE US GOVERNMENT THE COMPANY PAID 69 MILLION IN FINES TO SETTLE CIVIL AND CRIMINAL CHARGES AND GE TURNED TO SALEM KATSH OF NEW YORK'S WEIL GOTSHAL & MANGES WHEN IT BROUGHT A TRADESECRETS CASE AGAINST A KOREAN MAKER OF INDUSTRIAL DIAMONDS EARLIER THIS YEAR A FEDERAL JUDGE ORDERED THAT ILJIN CORP OF SEOUL BE BANNED FROM MAKING HIGHGRADE INDUSTRIAL DIAMONDS NONETHELESS EVEN IN SUCH CASES MR HEINEMAN SAYS HAVING STRONG INHOUSE LAWYERS HELPS THE COMPANY BETTER MONITOR THE WORK OF OUTSIDE ATTORNEYS MR WEBB SAYS THAT SO FAR IN THE DIAMOND CASE HE HAS PROBABLY STRATEGIZED A LOT MORE WITH THE GE LEGAL DEPARTMENT THAN HE USUALLY DOES WITH INHOUSE LAWYERS MR WEBB'S WORK FOR GE DERAILED HIS POSSIBLE APPOINTMENT AS SPECIAL COUNSEL IN THE WHITEWATER AFFAIR AFTER HE AND ATTORNEY GENERAL JANET RENO AGREED THERE MIGHT BE A CONFLICT HE SAYS OF COURSE MOST LEGAL MATTERS THAT GE FACES INVOLVE NEITHER THE DRAMA NOR THE COMPLEXITY OF A PRICEFIXING CASE OR A GIANT CORPORATE DEAL AND SPECIALISTS IN MANAGING CORPORATE LEGAL WORK QUESTION WHETHER A COMPANY ORDINARILY NEEDS AS MUCH INHOUSE FIREPOWER AS GE HAS ASSEMBLED SOME OUTSIDE ATTORNEYS WHO HAVE WORKED CLOSELY WITH GE PRIVATELY MUTTER THAT ITS TOP STAFF LAWYERS MAY SOMETIMES BE ENGAGED IN WORK FOR WHICH THEY ARE OVERQUALIFIED WHEN YOU TAKE THE GE LEGAL DEPARTMENT AS A WHOLE THERE'S ALMOST TOO MUCH QUALITY FOR THE KIND OF LEGAL SERVICES THAT ARE DEMANDED SAYS A PRIVATEFIRM LAWYER WHO HAS REPRESENTED THE COMPANY YOU HAVE A SURFEIT OF TALENT AND THERE MAY NOT ALWAYS BE THE FLOW OF HIGHLEVEL MATTERS THAT WOULD DEMAND THE ATTENTION OF THAT QUALITY LAWYER COMMENTS DAVID MAISTER A BOSTON CONSULTANT TO PROFESSIONAL FIRMS THERE IS A DANGER THAT HIGHPOWERED INHOUSE LAWYERS WILL HOARD WORK INAPPROPRIATELY AND NOT DELEGATE IT TO OUTSIDE LAW FIRMS BUT THAT DOESN'T APPEAR TO BE THE CASE HERE MR MAISTER ADDS IF I WERE A MAJOR CORPORATION I'D WANT TO ERR ON THE SIDE OF HAVING HIGHPOWERED LAWYERS INHOUSE BECAUSE THE INHOUSE GENERAL COUNSEL HAS TO MANAGE THE COMPANY'S TOTAL LEGAL NEED YOU WOULDN'T WANT WEAK INSIDE LAWYERS TRYING TO MANAGE STRONG OUTSIDE LAWYERS SOURCE FRAUD SURVEY RESULTS 1993 KPMG PEAT MARWICK BASED ON RESPONSES FROM 330 OF THE 2000 LARGEST DUN & BRADSTREET COMPANIES TOTALS EXCEED 100 BECAUSE TYPICALLY COMPANIES USE MORE THAN ONE METHOD 9402250080 940225 EPA FILES 7 COMPLAINTS ON SOLIDWASTE DISPOSAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY FILED SEVEN ADMINISTRATIVE COMPLAINTS SEEKING 47 MILLION IN FINES FROM COMPANIES ALLEGED TO HAVE VIOLATED FEDERAL STANDARDS FOR INCINERATORS BOILERS AND INDUSTRIAL FURNACES AMONG THE COMPANIES AFFECTED AND FINES SOUGHT ARE ABBOTT LABORATORIES 991775 UNION CARBIDE CHEMICALS & PLASTICS CO A SUBSIDIARY OF UNION CARBIDE CORP 320300 AMERICAN CYANAMID CO 417600 DOW CHEMICAL CO 270730 AND REILLY INDUSTRIES INC ALL OF THE PENALTIES ARE BEING SOUGHT UNDER THE RESOURCE CONSERVATION AND RECOVERY ACT WHICH GOVERNS DISPOSAL OF SOLID WASTE THE ALLEGED VIOLATIONS WHICH RELATE MAINLY TO MONITORING REQUIREMENTS FOR WASTE BURNED OR CHEMICALS EMITTED FROM THE PLANTS WILL BE REVIEWED BY ADMINISTRATIVE LAW JUDGES IN VARIOUS JURISDICTIONS SEPARATELY THE EPA AND THE JUSTICE DEPARTMENT FILED SUIT AGAINST NEVILLE CHEMICAL CO FOR ALLEGEDLY VIOLATING 19 REQUIREMENTS OF THE FEDERAL SOLIDWASTE LAW INCLUDING NINE GOVERNING THE BURNING OF HAZARDOUS WASTE IN INDUSTRIAL BOILERS AT A PLANT IN NEVILLE ISLAND PA THE JUSTICE DEPARTMENT IS SEEKING A FINE OF 475000 PER DAY 9402250079 940225 PEPPERAND SALT THE REASON INTO MY HEAD POPS BECAUSE THEY HAVE ESPRIT DE COPS MY INSIDES NEED TO WALTZ 9402250078 940225 SMALL STOCK FOCUS STOCKS SINK AS WAVE OF UNFAVORABLE NEWS AND FALLING BOND PRICES TRIGGER SELLING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK WAVES OF BAD NEWS FROM EVERY DIRECTION HIGHLIGHTED BY SINKING BONDS ROCKED SMALLCOMPANY STOCK PRICES THE COLLAPSE OF A BIG TELECOMMUNICATIONS DEAL SELLOFFS IN EUROPEAN MARKETS RUMORS OF CIVIL UNREST IN RUSSIA AND A ROUT ON THE BIG BOARD COMBINED TO HELP PUMMEL SMALLER ISSUES ONE KEY SMALLCAPITALIZATION STOCK INDICATOR THE RUSSELL 2000 INDEX SANK 271 OR 102 TO FINISH AT 26221 THE NASDAQ COMPOSITE INDEX STUMBLED 967 OR 123 TO 77944 ABOVE ITS SESSION LOW OF 77767 REACHED AROUND MIDDAY ALTHOUGH RATESENSITIVE AND COMMUNICATIONS ISSUES WERE THE WEAKEST GROUPS THE NASDAQ STOCK MARKET'S ADVANCEDECLINE LINE SHOWS THAT YESTERDAY'S LOSSES REACHED EVERY SECTOR NASDAQ NATIONAL MARKET VOLUME SURGED TO 306477500 SHARES FROM 255218500 WEDNESDAY TOTAL VOLUME WAS 348951000 SHARES UP SUBSTANTIALLY FROM 295465900 WEDNESDAY MEANWHILE THE NEW YORK STOCK EXCHANGE UPTICK RULE WAS TRIGGERED AT 333 PM EST WHEN THE DOW JONES INDUSTRIAL AVERAGE WAS OFF MORE THAN 50 POINTS THE RULE RESTRICTS PROGRAM TRADING THE INDUSTRIAL AVERAGE FINISHED WITH NEARLY A 52POINT DEFICIT MARKET OBSERVERS AGREED THAT THE MAIN CULPRIT BEHIND THE PERSISTENT SELLING WAS SHARPLY HIGHER RATES AMONG RATESENSITIVE STOCKS FOOTHILL GROUP INC A LOS ANGELES ASSETBASED LENDING PROVIDER FELL 1 1/8 TO 15 1/8 ON THE BIG BOARD CITADEL HOLDING CORP A GLENDALE CALIF SAVINGS AND LOAN HOLDING COMPANY DROPPED 3/8 TO 6 1/8 ON THE AMERICAN STOCK EXCHANGE AND HORIZON BANK BELLINGHAM WASH RETREATED 3/4 TO 14 THE LOSSES CAME ALL AT ONCE AND NO GROUP GOT SMASHED HARDER THAN COMMUNICATIONS THE SECTOR WAS HIT ON NEWS THAT THE PLANNED ACQUISITION OF TELECOMMUNICATIONS DOWN 1 7/8 TO 22 3/8 BY BIG BOARDTRADED BELL ATLANTIC UP 1 3/4 TO 54 1/2 COLLAPSED AMONG SMALLER ISSUES IN THE SECTOR JONES SPACELINK AN ENGLEWOOD COLO CABLETELEVISION CONCERN DROPPED 1/2 TO 2 1/8 AMERICAN MOBILE SYSTEMS WOODLAND HILLS CALIF DECLINED 1 1/4 TO 12 1/2 AND CELLULAR COMMUNICATIONS BASED IN NEW YORK GAVE UP 5/8 TO 47 1/4 IN EARNINGS NEWS INSILCO DROPPED 1 1/4 TO 16 THE DUBLIN OHIO CABLE ASSEMBLIES MANUFACTURER SAID ITS FOURTHQUARTER LOSS WIDENED TO 149 A SHARE ON CHARGES FROM 115 A YEAR EARLIER JOHN B SANFILIPPO & SON FELL 1 3/4 TO 10 1/4 ON THE HEELS OF A DISAPPOINTING 1993 EARNINGS FORECAST THE ELK GROVE VILLAGE ILL DISTRIBUTOR OF NUTS SAID IT EXPECTS ITS NET INCOME FOR THE YEAR TO BE 72 CENTS TO 76 CENTS A SHARE DOWN FROM 95 CENTS IN 1992 ZYNAXIS MALVERN PA PLUMMETED 1 TO 3 1/8 THE COMPANY SAID ELI LILLY HAS TERMINATED A COLLABORATIVE AGREEMENT DESIGNED TO APPLY ZYNAXIS' DRUGDELIVERY TECHNOLOGY AND LILLY'S CATHETERDEVICE SYSTEMS TO VASCULAR DRUGS THAT HAVE THE POTENTIAL TO REDUCE THE RATE OF RESTENOSIS AFTER ANGIOPLASTY LILLY LOST 1 3/8 TO 55 7/8 ON THE BIG BOARD GAINERS WERE HARD TO FIND BUT NEW ISSUE GLOBAL VILLAGE COMMUNICATIONS MOUNTAINVIEW CALIF STOOD OUT JUMPING TO 10 1/2 FROM ITS 8ASHARE OFFERING PRICE THE COMMUNICATIONSPRODUCTS COMPANY SAID IT WILL USE NET PROCEEDS FOR WORKING CAPITAL TO SUPPORT GENERAL CORPORATE PURPOSES MINNTECH ADDED 1/2 TO 11 3/4 THE MINNEAPOLIS MEDICALDEVICES FIRM SAID IT GOT PREMARKET APPROVALS FROM THE FOOD AND DRUG ADMINISTRATION FOR SIX OF NINE NEW PRODUCTS THE APPROVALS WERE GRANTED FOR THREE MODELS OF HEMOFILTERS FOR USE IN ACUTE KIDNEY FAILURE AND THREE MODELS OF HEMOCONCENTRATORS USED IN OPENHEART SURGERY STAC ELECTRONICS SURGED 2 1/8 TO 6 1/2 AS PREVIOUSLY REPORTED A FEDERAL JURY AWARDED THE CARLSBAD CALIF DATACOMPRESSION PRODUCTS CONCERN 120 MILLION IN DAMAGES IN A PATENTINFRINGEMENT CASE AGAINST MICROSOFT WHICH EASED 1 1/8 TO 79 7/8 AMERICA ONLINE JUMPED 3 3/4 TO 84 SHARES OF THE VIENNA VA COMPUTER ONLINE INFORMATIONSERVICE COMPANY SET A 52WEEK HIGH AGAIN AS MARKET PLAYERS FOCUSED ON ITS CONTENT AND ITS MOVES TO CORRECT A CAPACITY SHORTAGE PRUDENTIAL SECURITIES ANALYST MARIANNE WOLK REPEATED HER BUY RATING SET A PRICE TARGET OF 95 AND RAISED HER FISCAL 1995 EARNINGS ESTIMATE MAYBELLINE CLOSED 2 1/8 HIGHER AT 29 1/4 THE MEMPHIS TENN COSMETICS MAKER SAID IT IS OFFERING TO BUY BACK UP TO 2941177 OF ABOUT 17850000 OUTSTANDING COMMON SHARES AT 34 EACH NET TO THE SELLER IN CASH FOR ABOUT 100 MILLION WEAK EUROPEAN STOCKS ALSO SET THE STAGE FOR A SELLOFF HERE LONDON AND FRANKFURT SHARES DROPPED FOLLOWING RUMORS OF A POSSIBLE COUP IN RUSSIA THE TECHNICAL UNDERPINNINGS IN THE MARKET LEAVE A LOT TO BE DESIRED SAID ALAN ACKERMAN AN EXECUTIVE VICE PRESIDENT AT REICH & CO BONDS ACT LIKE SHREDDED WHEAT CAUSING STOCKS TO ACT EQUALLY POORLY WE'VE GOT INFLATION JITTERS RATE JITTERS JUST A POTPOURRI OF JITTERS MR ACKERMAN SAID SECTORS AND INDIVIDUAL STOCKS ARE GETTING SMASHED BECAUSE OF THE NERVOUSNESS ASIDE FROM YESTERDAY RECENT DECLINES HE ADDED HAVE BEEN LIKE CHINESE WATER TORTURE THE DECLINES COME DAY AFTER DAY SLOWLY AND PAINFULLY RATHER THAN ALL AT ONCE 9402250077 940225 FALLING SHARE PRICES STIFLE ACQUISITIONS SPUR INVESTORS HEARD ON THE STREET CABLETV ISSUES STILL LOOK GOOD TO SOME INVESTORS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS IN CABLETELEVISION STOCKS RECOILED AS IF SOMEBODY HAD BOMBED THE INFORMATION HIGHWAY THAT WAS A MISTAKE IN THE EYE OF SOME BIG HOLDERS OF CABLETV SHARES WHO SEE NO GOOD REASON TO FLEE THE GROUP IN THE WAKE OF THE SCUTTLING OF BELL ATLANTIC'S PLANNED TAKEOVER OF TELECOMMUNICATIONS THE DOW JONES BROADCASTINDUSTRY STOCK GROUP WHICH INCLUDES TCI SANK 45 OBVIOUSLY THIS IS A PSYCHOLOGICAL BLOW BUT WE'RE HANGING ON SAID SCOTT BILLEADEAU A PORTFOLIO MANAGER WITH BA CAPITAL MANAGEMENT IN SAN DIEGO WHICH HAS 5 OF ITS 425 MILLION UNDER MANAGEMENT IN CABLE STOCKS INCLUDING COMCAST AND TELECOMMUNICATIONS I THINK YOU'RE GOING TO SEE CONTINUING TAKEOVERS AND JOINT VENTURES HE SAID JAMES ENGLE ANOTHER BIG HOLDER OF TELECOMMUNICATIONS SAID WE'LL PROBABLY BE BUYING SOME MORE TODAY MR ENGLE CHIEF INVESTMENT OFFICER OF NEW YORK'S WOOD STRUTHERS & WINTHROP A UNIT OF DONALDSON LUFKIN & JENRETTE OWNS ABOUT ONE MILLION SHARES AND WAS ONE OF SEVERAL MONEY MANAGERS IMPRESSED WITH A CONFERENCE CALL GIVEN BY JOHN C MALONE TELECOMMUNICATIONS' CHIEF EXECUTIVE OFFICER MR MALONE PUT LARGE INVESTORS AT EASE WITH HIS PLEDGE THAT STRATEGIC VENTURES FOR HIS COMPANY ARE STILL POSSIBLE INCLUDING MAYBE WITH BELL ATLANTIC THERE'LL BE OTHER DEALS DOWN THE PIKE JOHN MALONE IS A RESOURCEFUL PERSON MR ENGLE SAYS CONFIDENTLY SUCH INVESTORS REMAINED CONVINCED THAT THE FUTURE REVOLVES AROUND INTERACTIVE SOUND AND VIDEO FINDING THEIR WAY INTO THE AMERICAN LIVING ROOM CABLE AND TELECOMMUNICATIONS COMPANIES WILL STILL FIND WAYS TO MERGE OR ALLY THEMSELVES TO WIRE UP THE NATION FOR IT ALL THE BULLS INSIST THE SCUTTLING OF THE TELECOMMUNICATIONS DEAL IS JUST A BUMP IN THE ROAD ADMITTEDLY THAT'S A PRETTY OPTIMISTIC WAY TO LOOK AT THE YANKING OF ONE OF THE BIGGEST PROPOSED ACQUISITIONS IN WALL STREET HISTORY YET INVESTMENT BANKERS SAY THERE IS NO STOPPING THE INEVITABLE MARRIAGE OF CABLE FIRMS AND PHONE COMPANIES THERE'S TOO MUCH DESIRE ON BOTH SIDES TO GET TOGETHER SAYS JOHN WALLER OF WALLER CAPITAL IN NEW YORK AN INVESTMENTBANKING FIRM INVOLVED WITH SEVERAL CABLE DEALS INCLUDING HELPING CHRONICLE PUBLISHING SELL ITS CABLE COMPANY WE'RE SITTING HERE WITH A LOT OF COMPANIES FOR SALE AND A LOT OF COMPANIES THAT WANT TO BUY THEM SOME BIG INVESTORS SAW A BUYING OPPORTUNITY IN THE SELLOFF WHICH SPILLED OVER TO SUCH CABLEEQUIPMENT STOCKS AS GENERAL INSTRUMENT DOWN 12 AND SCIENTIFICATLANTA DOWN 8 AS WELL AS TIME WARNER WHICH OWNS A LARGE CABLE COMPANY MUTUALFUND MANAGER MARIO GABELLI SAID I'M TAKING SOME OF MY PARAMOUNT MONEY AND AM GOING TO BE BUYING SOME STOCKS LIKE TIME WARNER THAT HAVE A MULTILANE HIGHWAY TO THE FUTURE TIME WARNER CLOSED AT 37 5/8 OFF 5/8 SIMILAR OPTIMISM EMANATED FROM OMAHA NEB WHERE FUND MANAGER WALLACE WEITZ CALLED THE CABLE CARNAGE NOT THE END OF THE WORLD SOME 15 OF THE NEARLY 400 MILLION HE MANAGES IS IN CABLERELATED STOCKS AND HE SAID HE SAT STILL WITHOUT REACHING FOR HIS MAALOX I'D LOVE TO SEE THEM GET CHEAPER AND I'D BUY SOME MORE HE SAYS THE DOW JONES BROADCASTING INDEX HELPED BY CABLE STOCKS SOARED 36 LAST YEAR BUT CABLE SHARES STARTED FALLING LATE IN THE YEAR BECAUSE OF UNCERTAINTY ABOUT HOW FAR THE FEDERAL COMMUNICATIONS COMMISSION WOULD CUT THE RATES CABLE COMPANIES CHARGE THE FCC'S ADDITIONAL ROLLBACK THIS WEEK OF RATES THE COMPANIES CAN CHARGE WAS ONE OF THE THINGS THAT TORPEDOED THE BELL ATLANTIC/TCI PACT CABLE VIEWERS DON'T MIND LOWER RATES OF COURSE BUT CABLESTOCK INVESTORS WERE LIVID THE FCC RATE REDUCTION REALLY HURT IT WAS STUPID IT WAS UNNECESSARY BY GOVERNMENT FUMED MR GABELLI ADDING NOTWITHSTANDING THAT I THINK THE CABLE COMPANIES WILL DO QUITE WELL IN 199596 IN TERMS OF NEW TECHNOLOGIES AND I SEE THE OPPORTUNITY FOR TCI AND BELL ATLANTIC TO COME BACK AND REVISIT EACH OTHER INDEED IT APPEARED THAT BARGAINHUNTING INVESTORS WERE ALREADY SNAPPING UP TELECOMMUNICATIONS SHARES IN THE AFTERNOON THE STOCK WHICH HAD FALLEN AS LOW AS 21 1/4 CLOSED AT 22 3/8 DOWN 1 7/8 ON THE NASDAQ STOCK MARKET EARLY IN THE DAY MELISSA COOK PRUDENTIAL SECURITIES' BROADCASTING PUBLISHING AND CABLE ANALYST WENT SO FAR AS TO UPGRADE TELECOMMUNICATIONS TO BUY FROM HOLD SHE ALREADY HAD A BUY ON COMCAST SHE EMPHASIZED THAT THE BUY RECOMMENDATION WAS ONLY A VALUE CALL ON THE STOCK SUGGESTING THINGS COULD STILL BE ROCKY FOR TELECOMMUNICATIONS FOR A WHILE STILL SMART COMPANIES LIKE TCI AND COMCAST ARE GOING TO FIND A WAY TO GET THE CAPITAL THEY NEED LONG TERM THE ANALYST SAID THE LOGIC BEHIND CABLEINDUSTRY MERGERS REMAINS SOUND ARGUES OREN COHEN A MEDIABOND ANALYST AT SALOMON BROTHERS YESTERDAY'S SELLOFF IN CABLE BONDS SIMILAR TO THE DECLINES IN THE STOCK MARKET PROMPTED SALOMON TO ANNOUNCE A GOOD BUYING OPPORTUNITY FOR BOND INVESTORS THE MOST ATTRACTIVE CANDIDATES FOR MERGER MR COHEN SAYS ARE ADELPHIA COMMUNICATIONS CABLEVISION INDUSTRIES CABLEVISION SYSTEMS COMCAST AND CONTINENTIAL CABLEVISION NEITHER THE STOCKS NOR BONDS OF CABLE COMPANIES ARE FOR THE QUEASY HOWEVER CABLE COMPANIES ARE VALUED BY CASH FLOW AND THEIR STOCKS CAN GYRATE QUICKLY ON THE SLIGHTEST NEWS THE SHELVING OF THE BELL ATLANTIC DEAL ON TOP OF THE FCC'S RATEROLLBACK EFFORTS SCARE OFF SOME ANALYSTS AND INVESTORS THEY SAY THAT EVEN IF THE VAUNTED INFORMATION HIGHWAY DOES INDEED GET BUILT IT MIGHT TAKE LONGER THAN OPTIMISTS THINK ED HATCH AN ANALYST AT UBS SECURITIES SAID HIS CASHFLOW ASSUMPTIONS AND BUY RATINGS ON COMCAST TIME WARNER AND THE SMALLER TCA CABLE TV ARE UNDER REVIEW THE FCC RULING TO CUT BASIC RATES 7 COUPLED WITH WHAT WILL LIKELY BE A LONG AND PROTRACTED PERIOD OF REGULATION IN THE INDUSTRY WILL PREVENT CABLE STOCKS FROM REBOUNDING SIGNIFICANTLY EVEN FROM THESE REDUCED LEVELS MR HATCH SAID IN A MORNING REPORT TO CLIENTS HE ADDED THAT THE BENCHMARK FOR MERGERS OF 1175 TIMES CASH FLOW SET BY THE PROPOSED BELL ATLANTIC/TCI ACCORD WILL ALSO PROBABLY BE REDUCED BECAUSE EXACT TERMS OF THE FCC RULES ARE STILL UNCLEAR THE UNCERTAINTY COULD LINGER FOR MONTHS BEYOND THE MIDMAY PERIOD WHEN CABLE OPERATORS BEGIN TO IMPLEMENT RATE CUTS MR HATCH SAID AND TELEPHONE COMPANIES WILL BE RETICENT TO RENEW MERGER TALKS WITH PROSPECTIVE CABLE PARTNERS UNTIL THE IMPACT ON CASH FLOWS FROM RATE CUTS BECOMES CLEAR STILL JESSICA REIF OF OPPENHEIMER & CO INSISTS THAT NO MATTER HOW BLEAK A PICTURE ANYONE PAINTS SHE STILL BELIEVES THAT CABLE/PHONE COMPANY DEALS WILL OCCUR AS TECHNOLOGY CONVERGES SHE NOTES THAT TELECOMMUNICATIONS IS TRADING AT THE LOW END OF HISTORICAL NORMS LESS THAN EIGHT TIMES ESTIMATED 1994 CASH FLOW COMPARED WITH THE TRADING RANGE FOR CABLE SHARES OF SEVEN TO 13 TIMES HER PRICE TARGET FOR THE STOCK THIS YEAR IS 32 THAT'S 43 ABOVE YESTERDAY'S CLOSE CABLE STOCKS COULD BE VOLATILE SHE CONCEDES BUT I'M VERY VERY COMFORTABLE WITH BUYING TELECOMMUNICATIONS MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE THE DEAL COLLAPSES EVENTS OF 1994 REVEAL THE DARK SIDE OF USING STOCK OVER CASH IN MEGADEALS WSJ FEB 25 1994 9402250076 940225 AFLCIO RELEASES 125 MILLION FOR ADS ON HEALTH REFORM WASHINGTON THE AFLCIO HAS RELEASED AN ADDITIONAL 125 MILLION FOR ADVERTISEMENTS BACKING HEALTHCARE REFORM INCLUDING A TOUGH SERIES OF ADS NOTING THE GENEROUS BENEFITS RECEIVED BY MEMBERS OF CONGRESS THE TIMING AND TONE OF THE ADS HAVE BEEN A SUBJECT OF DISPUTE WITHIN THE LABOR FEDERATION WHILE ALL AFLCIO MEMBER UNIONS BACK HEALTHCARE REFORM A SPLINTER GROUP WANTS TO RUN HARDHITTING ADS URGING VIEWERS AND LISTENERS IN TARGETED DISTRICTS TO COMPARE THEIR BENEFITS WITH THOSE OF LAWMAKERS THAT APPROACH BOTHERED SOME TOP DEMOCRATS ON CAPITOL HILL INCLUDING HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO WHO FEARS A BACKLASH AGAINST INCUMBENTS IF CONGRESS IS HELD OUT AS AN ISLAND OF PERKS THE AFLCIO WILL FEED 500000 TO THE CAMPAIGN FOR HEALTH SECURITY WHOSE ADS WILL MAKE THE COMPARISON WITH CONGRESSIONAL BENEFITS ORIGINALLY PUT TOGETHER TO SUPPORT A SINGLEPAYER HEALTHCARE SYSTEM THE GROUP NOW HAS BECOME A HARDLINE SUPPORTER OF THE CLINTON ADMINISTRATION'S PLAN A SINGLEPAYER SYSTEM IN WHICH THE GOVERNMENT WOULD PROVIDE BENEFITS TO EVERYONE IS POLITICALLY ALL BUT DEAD THE FEDERATION WILL SEND 750000 TO THE HEALTH CARE REFORM PROJECT A GROUP MADE UP OF LABOR REPRESENTATIVES THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND OTHERS THOSE FUNDS WILL BE USED FOR MORE GENERAL ADS THE AFLCIO IS PLANNING TO SPEND MORE THAN 3 MILLION FOR HEALTHCARE ADS THIS YEAR BUT HAS SENT OUT LESS THAN 500000 SO FAR CRUCIAL HOUSE NEGOTIATIONS ON THE HEALTHCARE PLAN WILL BEGIN NEXT MONTH 9402250075 940225 TECHNOLOGY & HEALTH ELDERS LABELS SMOKING AN ADOLESCENT ADDICTION WASHINGTON AP SURGEON GENERAL JOYCELYN ELDERS LABELED SMOKING AN ADOLESCENT ADDICTION AND ACCUSED THE TOBACCO INDUSTRY OF TRYING TO CONVINCE TEENAGERS THAT CIGARETTES WILL MAKE THEM SEXY AND SUCCESSFUL DR ELDERS UNVEILING THE LATEST SURGEON GENERAL'S REPORT ON SMOKING ALSO URGED THE FEDERAL TRADE COMMISSION TO DRAW THE CURTAIN ON RJ REYNOLDS TOBACCO'S JOE CAMEL CARTOON ADS SMOKING IS NOT JUST AN ADULT HABIT IT IS AN ADOLESCENT ADDICTION SAID DR ELDERS SHE SAID TEENAGERS WHO SMOKE RUN HIGHER RISKS OF EXPERIMENTING WITH ALCOHOL AND DRUGS DOING POORLY IN SCHOOL FIGHTING ENGAGING IN UNSAFE SEX AND EVEN ATTEMPTING SUICIDE HER REPORT COMPILED BY GOVERNMENT SCIENTISTS AND ACADEMIC RESEARCHERS SAID THE AVERAGE AGE WHEN SMOKERS TRIED THEIR FIRST CIGARETTE IS 145 YEARS AND MORE THAN 70 OF THOSE WHO BECOME DAILY SMOKERS ACQUIRED THAT HABIT BY AGE 18 RJ REYNOLDS SAID THAT PEER INFLUENCE AND PARENTAL EXAMPLE ARE THE REASONS WHY YOUTH SMOKE NOT ADVERTISING DR ELDERS SAID SHE PROBABLY WILL TALK TO PRESIDENT CLINTON ABOUT THE NEED FOR TOUGHER ACTION 9402250074 940225 THE DEAL COLLAPSES WILL THE FCC'S CABLE RATE CUTS SLOW TRAFFIC ON INFORMATION SUPERHIGHWAY BY MARK ROBICHAUX AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CABLE COMPANIES QUICKLY BEGAN REVAMPING PLANS AND REVISING FINANCIAL PROJECTIONS IN THE WAKE OF NEW FEDERAL CABLE RATE CUTS THAT HELPED SCUTTLE THE MERGER BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC THE NEW 7 CUTBACKS ORDERED BY THE FEDERAL COMMUNICATIONS COMMISSION WHICH FOLLOW A 10 CUT LAST YEAR WON'T BE FATAL TO THE INDUSTRY AND IN THE LONGER TERM LARGER DIVERSIFIED CABLE OPERATORS WILL LIKELY PROSPER BUT FOR THE IMMEDIATE FUTURE CABLE COMPANIES SAY THEY ARE SCALING BACK ANTICIPATED EXPANSION THEY ARE ALSO TRYING TO MAKE UP THE LOST REVENUE FROM BASIC CABLERATE CUTS BY RESHUFFLING CHANNEL OFFERINGS AND PUSHING UNREGULATED SERVICES SUCH AS PREMIUM CHANNELS AND PAYPERVIEW EVENTS WE DON'T HAVE MUCH OF A CHOICE SAYS GLENN JONES PRESIDENT OF JONES INTERCABLE INC THE EIGHTHLARGEST CABLE OPERATOR WE HAVE TO COMPLY WITH THE LAW MOST CABLE OPERATORS SAY THEY WILL BE FORCED TO CUT CAPITAL SPENDING SLOWING CONSTRUCTION OF THE VAUNTED INFORMATION SUPERHIGHWAY THUS AMBITIOUS PLANS TO BUY NEW COMPUTERLIKE CABLE CONVERTERS TO UPGRADE COAXIAL CABLE WITH FIBER OPTICS AND TO BUY EXPENSIVE NEW DIGITAL VIDEO SERVERS MAY NOW BE PUT ON HOLD INDEED TCI WHICH DUBBED THE LATEST ROUND OF RATE ROLLBACKS AS UNWARRANTED EXCESSIVELY SEVERE AND HARMFUL SAID YESTERDAY THAT IT PLANS TO SUSPEND 500 MILLION OF CAPITAL SPENDING 50 OF ITS 1994 BUDGET PENDING FURTHER CLARIFICATION OF THE FCC REGULATIONS THE NEWS SENT THE STOCK PRICES OF TWO CABLEEQUIPMENT SUPPLIERS GENERAL INSTRUMENT CORP AND SCIENTIFICATLANTA INC FALLING YESTERDAY IT WILL BE DIFFICULT TO MAKE UP THE REVENUE IN THE NEAR TERM SAYS HOWARD VOGEL A VICE PRESIDENT WITH MERRILL LYNCH & CO THEY REALLY DO HAVE TO SLOW THE SPENDING AND JESSICA REIF AN ANALYST AT OPPENHEIMER & CO SAYS OF THE FCC'S ACTIONS THE GOVERNMENT CAN'T EXPECT PRIVATE ENTERPRISE TO SPEND BILLIONS OF DOLLARS ON THE INFORMATION HIGHWAY THEN CUT THEM OFF AT THE KNEES BY ROLLING BACK RATES REED HUNDT THE NEW FCC CHAIRMAN DISMISSED SUCH CLAIMS AS ALARMIST RHETORIC FROM THE CABLE INDUSTRY HE PREDICTS IT WILL CONTINUE TO PROSPER DESPITE CABLE COMPANIES' CRIES TO THE CONTRARY I AM ABSOLUTELY CONFIDENT THAT THE CABLE INDUSTRY AFTER READING THE RULES AND PUTTING THEIR INGENUITY TO WORK WILL FIND AMPLE OPPORTUNITY FOR REVENUE WITH NEW SERVICES AND PRODUCTS HE SAID MR HUNDT ADDED THAT HE BELIEVES THE FCC'S ACTION WAS FAIR AND WARRANTED WE ARE HERE TO PROTECT CONSUMERS FROM EXCESSIVE MONOPOLY PRICES HE SAID THAT'S OUR JOB THE FORMAL FCC ORDER WILL BE ISSUED IN MIDMARCH IT WILL CONTAIN THE FORMULAS CABLE SYSTEMS NEED TO MEASURE THE IMPACT ON THE BUSINESSES IF THEIR STORY IS THAT UNCERTAINTY KILLED THE DEAL WHY NOT WAIT 30 DAYS SAID MICHAEL KATZ THE FCC'S CHIEF ECONOMIST BOTH COMPANIES HE SAID SHOULD HAVE LOOKED TO SEE WHAT WE HAVE DONE THE RULES ALLOW CABLE COMPANIES TO CHARGE MORE FOR NEWS SERVICES AND GIVE THEM INCENTIVES TO INVEST IN THEIR NETWORK MS REIF SAYS IT IS TOO EARLY TO FULLY ASSESS THE IMPACT ON INDIVIDUAL CABLE COMPANIES SPECIFIC RULES RELATING TO COSTOFSERVICE STANDARDS HOW CABLE OPERATORS CALCULATE THEIR COSTS AND A LA CARTE PRICING OF CHANNELS WON'T BE PUBLISHED BY THE FCC FOR A MONTH OR SO COMPANIES UNDER THE NEW FCC BENCHMARKS WON'T HAVE TO CUT RATES FURTHER SHE SAYS THE FCC'S POSITION IS THAT CABLE OPERATORS HAVEN'T BEEN COMPLYING WITH THE LETTER OF THE LAW AND THAT'S WHY MORE CUTS ARE NECESSARY AN AGENCY SURVEY FOUND THAT ROUGHLY A THIRD OF CABLE CONSUMERS' BILLS ROSE AFTER THE 10 CUT WAS ORDERED LAST YEAR IN MANY CASES CABLE OPERATORS TOOK ALL BUT A HANDFUL OF CHANNELS OUT OF THE SOCALLED BASIC PACKAGE SO THAT CONSUMERS HAD TO PAY MORE TO GET THE MORE DESIRABLE SERVICES IN DIFFERENT TIERS OF SERVICE MORE THAN ANYTHING ELSE THE NEW RATE CUTS WILL PINCH CASHFLOW GROWTH A PRIMARY INDICATOR OF A CABLE COMPANY'S HEALTH BECAUSE OF HEAVY DEBT TAKEN ON FOR EXPANSION IN THE 1980S MOST CABLE OPERATORS DON'T REPORT PROFITS INSTEAD THEY HAVE LEVERAGED STEADILY RISING CASH FLOW TO EXPAND AND GET LOANS FROM BANKS IN GENERAL MS REIF SAYS TWOTHIRDS OF CABLE CASH FLOW IS FROM BASIC SERVICE AND EXPANDED BASIC SERVICE WHICH INCLUDES SEVERAL MORE POPULAR CHANNELS THUS A 7 RATE CUT WOULD DECREASE THE CASH FLOW THAT COMPANIES GET FROM BASIC AND EXPANDED BASIC SUBSCRIPTIONS BY 14 ASSUMING OPERATING PROFIT MARGINS OF 50 SOME COMPANIES ARE MORE VULNERABLE THAN OTHERS TCI FOR EXAMPLE GETS ALL OF ITS CASH FLOW FROM CABLE AND THUS STANDS TO BE HIT HARDEST WITH A 9 DECLINE IN CASH FLOW MS REIF SAYS TIME WARNER INC BY CONTRAST HAS OTHER BUSINESSES SUCH AS FILMED ENTERTAINMENT RECORDS AND PUBLISHING SO ITS CASH FLOW WOULD ONLY BE REDUCED BY ABOUT 3 WITH PRESSURE ON CASH FLOW CABLE OPERATORS WILL HAVE TO LOOK EVEN HARDER TO FIND NEW MONEY MANY CABLE COMPANIES HAD BEEN COUNTING ON INVESTMENTS FROM TELEPHONE COMPANIES TO HELP FOOT THEIR BILLS BUT FUTURE DEALS MAY NOW BE IN LIMBO WITH THE COLLAPSE OF THE BELL ATLANTICTCI MERGER JUST THIS MONTH CONCERN OVER RATE RULES FORCED FALCON CABLE HOLDINGS A CALIFORNIA CABLE OPERATOR WITH MORE THAN ONE MILLION SUBSCRIBERS TO SHELVE AN INITIAL PUBLIC OFFERING FALCON CHAIRMAN MARC NATHANSON WHO WAS HOPING THE SALE WOULD GENERATE 125 MILLION FOR UPGRADES AND DEBT REPAYMENT BLAMES THE DELAY OF THE OFFERING ON UNCERTAINTY OVER THE FCC RATE REGULATIONS THE FUTURE IS UNCERTAIN SAYS MR NATHANSON WE'RE HOLDING OFF UNTIL THE DUST SETTLES THE NATIONAL CABLE TELEVISION ASSOCIATION WHICH ESTIMATES THAT CABLE OPERATORS HAVE ALREADY LOST SOME 2 BILLION IN REVENUE IS PLANNING TO APPEAL THE FCC REGULATIONS IN THE US CIRCUIT COURT OF APPEALS TCI SAID IT PLANNED TO APPEAL THE RULES MEANTIME MANY CABLE COMPANIES WILL REBOUND FROM THE FCC ACTION BY AGGRESSIVELY PUSHING UNREGULATED SERVICES OR OFFERING NEW A LA CARTE SERVICES THAT DON'T COME UNDER THE RATE RULES INDEED CONSUMER ADVOCATES QUESTION HOW MUCH REAL RELIEF SUBSCRIBERS WILL GET FROM THE NEW CUTS BECAUSE CABLE COMPANIES ARE STILL A MONOPOLY IN THEIR LOCAL MARKETS SOME SAY THE NEW RULES WILL HAVE THE AFFECT OF SQUEEZING A BALLOON WHEREVER PRESSURE IS APPLIED EQUAL EFFORTS WILL BE MADE TO EXTRACT REVENUE ELSEWHERE THE NET EFFECT IS THAT CONSUMERS AREN'T LIKELY TO GET THE SAME CABLE AT A LOWER PRICE SAYS THOMAS HAZLETT AN ECONOMIST AT THE UNIVERSITY OF CALIFORNIA AT DAVIS AND A FORMER CHIEF ECONOMIST WITH THE FCC THEY'RE LIKELY TO GET A LOWERQUALITY CABLE PACKAGE AT A LOWER PRICE AS THE FCC WORKS TO WRITE THE FINAL RULES CABLE OPERATORS FRET OVER THE TASK OF RECALCULATING RATES FOR EACH OF THE 11000 SYSTEMS THE THING WE REALLY HAVE TO WORRY ABOUT IS THE RAIN FORESTS SAYS MR JONES OF JONES INTERCABLE FOR THE FIRST ROUND OF RULES THERE WERE 500 PAGES GOING TO EVERY CITY AND COUNTY AND CABLE OPERATOR NOW THERE'S A NEW SET COMING DOWN SEE RELATED ARTICLE WHAT COLLAPSE OF TCI MERGER MEANS FOR DEALS WSJ FEB 25 1994 9402250073 940225 WORLD MARKETS RATE FEARS THREAD GLOBAL BOURSES HAMMERING STOCK PRICES TOKYO SHARES JUMP ON YEN REPORT A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS DIVED 22 YESTERDAY HURT BY A SLEW OF BEARISH FACTORS INCLUDING BRITISH FUTURES US ECONOMIC DATA AND A FRENCH MONETARY MOVE OTHER EUROPEAN BOURSES CHALKED UP HEAVY LOSSES WIDELY SPURRED BY FEARS OF HIGHER US INTEREST RATES FRANKFURT EQUITIES DROPPED 18 PUSHED DOWN BY RUMORS AND TECHNICAL FACTORS PARIS PRICES SANK 19 IN REACTION TO A STINGY FRENCH INTERESTRATE CUT TOKYO SHARES JUMPED 22 THURSDAY AFTER INVESTORS WERE CHEERED BY A NEWS REPORT LATER DENIED ABOUT EXCHANGE RATES BETWEEN THE JAPANESE AND US CURRENCIES BUT MANY ASIAN BOURSES SLUMPED BECAUSE OF VARYING DOMESTIC FACTORS HONG KONG STOCKS TUMBLED 31 AFTER THE BRITISH COLONY'S LEGISLATURE ENDORSED ELECTORAL REFORMS PROMPTING ANOTHER CHINESE THREAT TO DISSOLVE THE GOVERNMENT AFTER THE 1997 TAKEOVER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11563 DOWN 019 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8005 UP 370 OR 49 WITH NIPPON SUISAN OF JAPAN POSTING A 67 GAIN IN ITS LOCAL CURRENCY MEDIA/BROADCAST STOCKS TRAILED AT 15012 DOWN 479 OR 31 WITH CABLEVISION SYSTEMS OF THE US SLIDING 78 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SANK 744 POINTS TO 32675 JUST 17 POINTS ABOVE THE INTRADAY LOW ONLY ONE FT 100 ISSUE ENDED HIGHER THE FT 30STOCK INDEX PLUNGED 503 POINTS OR ABOUT 2 TO 25281 VOLUME WAS 754 MILLION SHARES COMPARED WITH 8224 MILLION SHARES A DAY EARLIER STOCKS WERE PULLED LOWER BY A TUMBLING BRITISH BOND MARKET SLUMPING STOCKINDEX FUTURES AND BEARISH COMMENTS ON INFLATION FURTHERMORE A REPORT ON DURABLEGOODS ORDERS IN THE US SHOWED STRENGTH IN THAT ECONOMY INCREASING LONDON MARKET FEARS THAT INTEREST RATES MAY RISE MEANWHILE THE FRENCH CENTRAL BANK CUT AN INTEREST RATE LESS THAN EXPECTED AND THE FINAL BLOW TO LONDON STOCKS CAME WHEN WALL STREET OPENED SIGNIFICANTLY LOWER DESPITE THE BROADBASED PRESSURES THE EQUITY MARKET DIDN'T EXPERIENCE PANIC SELLING WHICH OCCURRED IN CAPITAL MARKETS ATTRIBUTED TO US HEDGE FUNDS IN FRANKFURT THE DAX 30STOCK INDEX SKIDDED 3738 POINTS TO 209029 EXPANDING THIS WEEK'S DROP TO MORE THAN 61 POINTS SENTIMENT WAS SOURED BY A FALSE RUMOR OF A PUTSCH IN RUSSIA A WEAKER MARCH DAX FUTURES CONTRACT A SOFT BOND MARKET AND WEAK EUROPEAN STOCK MARKETS IN PARIS STOCKS WERE SENT REELING AS ALREADY PESSIMISTIC INVESTORS WERE EXTREMELY DISAPPOINTED ABOUT A SMALL LENDINGRATE REDUCTION BY THE BANK OF FRANCE WHICH HAD BEEN EXPECTED TO LOOSEN MONETARY POLICY SINCE A SIMILAR MOVE LAST WEEK BY THE GERMAN CENTRAL BANK IN AMSTERDAM PRICES WERE SLAMMED DOWN 2 BY WEAK DUTCH CORPORATE EARNINGS REPORTS SHUDDERING BOURSES IN EUROPE AND NEW YORK HEIGHTENING CONCERN ABOUT RUSSIA'S POLITICAL STABILITY AND A WEAKER DOLLAR IN MILAN THE INDEX THAT INCLUDES ELECTRONICALLY TRADED ISSUES SLUMPED 16 PARTLY ON RENEWED EXPECTATIONS OF HIGHER US INTEREST RATES IN MADRID SHARES DROPPED 16 DRAGGED DOWN BY WEAKER EUROPEAN STOCK AND BOND MARKETS IN STOCKHOLM PRICES PLUNGED 22 IN LINE WITH THE EUROPEAN TREND AND ON MOUNTING WORRIES ABOUT RISING INTEREST RATES AND RUSSIA'S POLITICAL SITUATION IN ZURICH THE MARKET LOST 23 MAINLY ON DISAPPOINTING SWISS CORPORATE DEVELOPMENTS AS WELL AS WEAK BOND MARKETS IN BRUSSELS STOCKS LOST 1 BECAUSE OF WORRIES ABOUT HIGHER US INTEREST RATES AND A SLIGHT RISE IN LONGTERM BELGIAN RATES A REPORT IN THE NIHON KEIZAI SHIMBUN THAT US TREASURY SECRETARY LLOYD BENTSEN INDICATED TO JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA LAST MONTH THAT THE US WOULD ACCEPT AN EXCHANGE RATE OF ABOUT 110 YEN TO THE DOLLAR CAUSED A BRIEF DOLLAR RALLY THURSDAY IN CURRENCY DEALINGS THEN AS THE DOLLAR FELL BACK STOCKS REMAINED BUOYANT INDICATING SURPRISING DEMAND FOR SHARES DESPITE CURRENCY DEVELOPMENTS MARKET VOLUME ALSO SWELLED AS THURSDAY WAS THE FIRST DAY OF TRADING FOR MARCH SETTLEMENT WHICH MADE IT EASIER FOR JAPANESE SECURITIES HOUSES TO BUY SHARES FOR THEIR OWN ACCOUNTS THE NIKKEI HELD ON TO MOST OF ITS GAINS DESPITE A MIDAFTERNOON DROP AFTER A FINANCE MINISTRY OFFICIAL SAID JAPAN AND THE US HADN'T AGREED ON A DOLLARYEN EXCHANGERATE TARGET BUT THE OFFICIAL DIDN'T CONFIRM OR DENY THE BENTSENHOSOKAWA REPORT THE REMARKS CAUSED THE YEN TO TUMBLE PUSHING STOCKS DOWN BUT BUYING QUICKLY RESUMED ALSO FUELED BY THE FORMATION OF INVESTMENT TRUSTS FRIDAY IN SYDNEY PRICES FELL ALMOST 1 WITH INDUSTRIAL AND BANKING ISSUES LEADING THE RETREAT STOCKS WERE PRESSURED BY A WEAKER BOND MARKET AS FEARS CONTINUED ABOUT A RISE IN INTEREST RATES AND BY A WEAK WALL STREET ON WEDNESDAY SOME SELLING RESULTED FROM STOCK OPTIONS' EXPIRATION IN HONG KONG INVESTORS CONSIDERED THE REVIVAL OF POOR SINOBRITISH RELATIONS AS A REASON TO SELL SHARES AND SIGNS THAT BRITAIN AND CHINA REMAIN UNRECONCILED IN THEIR VIEWS ON THE COLONY TRIGGERED STOCKS' DIVE THOUGH TURNOVER REMAINED EXTREMELY WEAK DESPITE TWO SESSIONS OF GAINS THE MAIN INDEX HAS FALLEN 36 THIS WEEK AND 12 THIS YEAR FOLLOWING THE HONG KONG LEGISLATURE'S APPROVAL OF THE FIRST PART OF AN ELECTORAL REFORM PLAN EARLY THURSDAY MORNING THE SECOND AND MORE CONTROVERSIAL PART OF THE INITIATIVE TO BROADEN DEMOCRACY IS TO BE INTRODUCED IN SINGAPORE SHARES SLUMPED 16 ON DISSATISFACTION ABOUT THE PREVIOUS DAY'S GOVERNMENT BUDGET PROPOSALS SUCH AS A SMALLERTHANEXPECTED CUT IN THE PROPERTY TAX RATE THOUGH BLUE CHIPS FELL SPECULATIVE STOCKS WERE BOUGHT AND THE BENCHMARK INDEX RECOVERED SOME LOSSES IN TAIPEI EQUITIES DIVED 17 IN TEPID TRADING AFTER HEAVY SELLING BY FOREIGN FUNDS THE PREVIOUS DAY ADDED TO INVESTORS' WORRIES ABOUT THE SHORTTERM MARKET AND HELPED TRIGGER THE UNEXPECTEDLY LARGE AND BROADBASED DROP THURSDAY IN MANILA SHARES SAGGED 13 IN LIGHT TRADING AS THE MARKET REMAINED IN A CONSOLIDATION IN SEOUL STOCKS RETREATED 19 ON GROWING CONCERN THAT DRAINING OF LIQUIDITY BY THE SOUTH KOREAN CENTRAL BANK WILL MAKE STOCKS LESS ATTRACTIVE THAN BONDS IN MEXICO CITY STOCKS RECOVERED FROM A 3 INTRADAY LOSS TO FINISH HIGHER AS BUYERS GRABBED BARGAINS WITH THE MARKET DOWN ALMOST 14 SINCE POSTING A RECORD HIGH FEB 8 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 9402250072 940225 AMERICAN AIRLINES OBJECTS TO RIVAL FLIGHTCODE PACT FORT WORTH TEXAS AMERICAN AIRLINES ASKED THE DEPARTMENT OF TRANSPORTATION TO REFUSE TO RENEW THE AGREEMENT BETWEEN BRITISH AIRWAYS AND USAIR THAT ALLOWS THOSE CARRIERS TO SHARE FLIGHT CODES IN THE COMPUTERRESERVATION SYSTEM IN MARCH THE DOT AUTHORIZED A ONEYEAR CODESHARING AGREEMENT BETWEEN BRITISH AIR AND USAIR A UNIT OF USAIR GROUP INC THAT AUTHORIZATION ENDS MARCH 17 AMERICAN A UNIT OF AMR CORP FOUGHT THE AGREEMENT LAST YEAR BY SHARING FLIGHT CODES BRITISH AIR AND USAIR APPEAR AS IN THE RESERVATION SYSTEM AS ONE AIRLINE COVERING MORE COUNTRIES WITH CONNECTING FLIGHTS THE EFFECT IS THAT USAIR CAN FEED DOMESTIC PASSENGERS ONTO BRITISH AIR FLIGHTS ABROADTAKING CUSTOMERS AWAY FROM AMERICAN AMERICAN SAYS CODE SHARING GENERALLY SHOULD BE FORBIDDEN BECAUSE IT MISREPRESENTS WHICH AIRLINE A PASSENGER ACTUALLY IS FLYING AMERICAN SAYS IT SPECIFICALLY OBJECTS TO THE ALLIANCE BECAUSE IT BELIEVES THE BRITISH GOVERNMENT DOESN'T ALLOW THE SAME ACCESS TO BRITISH MARKETS THAT THE US GOVERNMENT GIVES TO DOMESTIC MARKETS 9402250071 940225 LETTERS TO THE EDITOR SOME TEXAS GROUSERS FLUSHED FROM COVER I'M SURPRISED THAT THE WALL STREET JOURNAL WOULD GO ON A WILD GROUSE HUNT IN ITS RECENT STORY ABOUT HOW KAY BAILEY HUTCHISON'S TROUBLES AT THE TEXAS TREASURY BEGAN YOU REPORTED THAT WHEN HUTCHISON DEFEATED BOB KRUEGER DEMOCRATS STARTED GROUSING THAT MS HUTCHISON HAD MISUSED HER POSITION AS TREASURER TO ADVANCE HER POLITICAL ACTIVITIES WRONG YOU GOT THE GROUSERS MIXED UP THEY CAME FROM HUTCHISON'S OWN REPUBLICAN FOLD THE ORIGINAL GROUSER WAS ON HER STAFF THE DAUGHTER OF FORMER GOV JOHN CONNALLY SHE ACCUSED MS HUTCHISON OF ORDERING HER TO PERFORM PERSONAL CHORES ON STATE TIME THEN TWO MORE GROUSERS ENTERED THE FIELD JACK FIELDS AND JOE BARTON HUTCHISON'S REPUBLICAN OPPONENTS FOR THE SENATE WHO USED THE ALLEGATIONS IN THEIR CAMPAIGNS AGAINST HER THE DEMOCRATS GOT INTO THE WILD GROUSE HUNT AFTER THE FIRST SHOTS HAD BEEN FIRED 9402250070 940225 LETTERS TO THE EDITOR OLD BLUE EYES BELONGS TO US SONNY IN RESPONSE TO THOMAS T VOGEL JR'S JAN 19 LEISURE & ARTS REVIEW OF FRANK SINATRA'S DUETS ALBUM MR VOGEL REVEALS LITTLE ABOUT FRANK SINATRA OR THE ERA HE SO DELUSIVELY THINKS HE HAS A HANDLE ON BUT PLENTY ABOUT HIMSELF AND THE GENERATIONS BORN SINCE 1945 HIS MELANGE OF PUERILE DECLARATIONS AND HIS MANGLED IDEAS ABOUT THOSE OF US WHO PRECEDED HIM INSPIRE A MIX OF PITY AND FURY EISENHOWER AND GIRDLES WHAT DOES THAT MEAN SINATRA FANS WORE TIE CLIPS THEIR WIVES HAD BLUE HAIR WHEN WAS THIS IN THE POSTWAR PERIOD WHEN THEY WERE STILL IN THEIR 20S AND 30S WHAT IS HE TALKING ABOUT MORE IMPORTANT WHY IS HE SAYING IT IN SUCH A NASTY VOICE TO BEGIN WITH ANYONE WHO BUYS A COPY OF SINATRA'S DUETS AND THINKS IT IS IN ANY WAY DEFINITIVE IS ABOUT AS COOL AS MORTIMER SNERD IT IS LIKE READING TARZAN IN THE DAILY COMICS OF OLD AND CONSIDERING ONESELF WELLVERSED ON JUNGLE LIFE MR VOGEL SNIDELY CHARACTERIZES SINATRA FANS AS DRIVERS OF GASGUZZLERS LISTENING TO RADIOS AND TALKING ACCORDING TO ONE OF HIS MORE OUTRE STATEMENTS ABOUT BOB HOPE'S TOURS OF PACIFIC MILITARY BASES DURING WORLD WAR II BOB HOPE HIS MANIC GIFTS NOTWITHSTANDING WAS HARDLY A HIGHPRIORITY TOPIC OF CONVERSATION EITHER IN THE LIVING ROOMS OR IN THE GASGUZZLERS DRIVEN BY THOSE CLODS WHO HAD JUST WON THE WAR AND AS TO BLASTING MUSIC OF ANY KIND AT EARPIERCING VOLUMES I SUGGEST MR VOGEL GET HIS GENERATIONS STRAIGHT I DON'T REMEMBER EVER HAVING TO GET UP AT THREE IN THE MORNING WHEN I LIVED IN LAUREL CANYON IN THE '60S AND '70S TO ASK SOME OLD EXGIS TO LOWER THEIR TOMMY DORSEY OR DUKE ELLINGTON RECORDS NOT THAT THIS WILL BE OF ANY REAL SIGNIFICANCE TO SOMEONE WHO CONSIDERS BONO ONE OF HIS FAVORITE HIPSTERS THOSE ANGUISHED COMPLAINTS FROM PEOPLE LIKE ME BY THEN A BIT LONG IN THE TOOTH WERE PART OF THE ECSTASY FOR PEOPLE LIKE THEM THAT DELIGHTFUL '60S CROWD THE MUTANTS WHO PRECEDED MR VOGEL IT'S HARD TO UNDERSTAND I MUST ADMIT WHY HE BRINGS UP THE SUBJECT OF DECIBEL LEVEL TO BEGIN WITH IT'S IRONIC COMING FROM A MEMBER OF THE MOST INFANTILE PRIMITIVE CACOPHONYWORSHIPPING GENERATION IN THE HISTORY OF THE WESTERN WORLD I FOUND MR VOGEL'S ARTICLE CURIOUSLY TOUCHING HIS EPIPHANY SERVED TO REMIND ME OF THE GENERATION OF BOBBY SOXERS THAT IDOLIZED THE CROONER AND INDEED MIGHT HAVE BEEN IN SOME WAYS A BIT MORE FORTUNATE THAN THE 25 TO 55YEAROLDS TARGETED TODAY BY MADISON AVENUE HOWEVER THERE ARE SOME CLARIFICATIONS TO BE MADE REGARDING US SINATRA FANS OF YESTERYEAR LIKE NOT ALL MATURE LADIES HAVE BLUE HAIR LIKE SOME OF THEM WERE MORE IMPRESSED WITH EINSTEIN THAN WITH EISENHOWER LIKE NOT ALL OF US ABANDONED THE CITY FOR SUBURBAN MALLS LIKE WE WERE NOT AS LUCKY AS THE REVIEWER AND HIS PEERS SINCE WE COULDN'T ACCESS PAST AND PRESENT EVENTS AS READILY AS WE WISHED HIS REVIEW ALSO PLEASED ME BY CONFIRMING THAT ONCE IN A WHILE GENERATIONAL GAPS CAN BE BRIDGED MY DAUGHTER NO NOT MELISSA OR JENNIFER BUT CLARA NOW CAN BOAST AMONG HER PALS ABOUT HER MOTHER'S CUTTING CLASSES TO LINE UP OUTSIDE THE PARAMOUNT THEATER WAITING FOR THE CHANCE TO SCREECH A DEAFENING FRANKIE ALONG WITH HER PALS NOT BEING LAID BACK I KEPT THIS TEENAGE LAPSE QUIET UNTIL RECENTLY IF MR VOGEL IS TERRIFIED BY OWNING A FRANK SINATRA CD I AM EVEN MORE TERRIFIED OF HIM OWNING ONE FRANK BELONGS TO MY GENERATION I CAN REMEMBER WHAT I WAS DOING WHEN PEARL HARBOR WAS BOMBED WHEN JFK WAS KILLED AND EVEN WHEN DON LARSEN PITCHED HIS PERFECT WORLD SERIES GAME FOR THE NEW YORK YANKEES I SERVED IN THE ARMY MARRIED ONCE FOR LIFE NEVER LOOKED AT ANOTHER WOMEN HAVE GONE TO WORK EVERY DAY OF MY ADULT LIFE NEVER TOOK DRUGS NEVER GREW LONG HAIR DON'T THESE YOUNG PEOPLE REALIZE OUR GENERATION IS MORALLY SUPERIOR TO THEIRS THAT WE ARE MORE INTELLIGENT THAN THEY THE SAT SCORES PROVE THAT WHY DO THEY SEEK NOW TO SULLY OUR ICONS WE SHOULD BE NEATLY PARTITIONED FROM THEM WITH NO POINTS ACTUALLY TOUCHING NOTHING IN COMMON FRANK SINATRA WILL NEVER SOUND QUITE THE SAME TO ME EVER AGAIN THEY HAVE VIOLATED THE HOLY GROUNDS OF THEIR ANCESTORS PS CAN YOU IMAGINE HOW MR VOGEL MIGHT HAVE FELT IF HE HAD LISTENED TO FRANK SINATRA WHEN HE WAS STILL FRANK SINATRA I WAS MILDLY AMUSED BY MR VOGEL'S ACCOUNT OF HOW IT FELT TO BUY HIS FIRST SINATRA ALBUM MY EPIPHANY WITH BLUE EYES IT IS ALWAYS AMUSING TO WATCH A MEMBER OF GENERATION X DISCOVER THAT INTERESTING THINGS HAPPENED PRIOR TO 1970 BUT I BEG TO DIFFER WITH MR VOGEL'S ASTONISHING CLAIM THAT ALL SINATRA FANS ARE AGING BOURGEOIS MIDDLEBROW LUNKHEADS FRANK SINATRA FANS BELONG TO THE ROTARY CLUB AND WEAR TIE CLIPS THEY'D STEER THEIR SHIPSIZED GASGUZZLING AUTOMOBILES TO THE SHOW FROM THE CONGESTED SUBURBAN MALL PARKING LOTS WITH NEW YORK NEW YORK' BLASTING AT EARPIERCING VOLUMES I AM 37 LIVE ON THE UPPER WEST SIDE OF MANHATTAN DRIVE A TOYOTA GO TO THE BALLET AND OWN AT LAST COUNT 19 FRANK SINATRA CDS NONE OF WHICH CONTAIN NEW YORK NEW YORK I DO OWN ONE TIE CLIP BUT I NEVER WEAR IT 9402250069 940225 LETTERS TO THE EDITOR REFORM WOULD PRODUCE MORE FATHERLESS KIDS DOUGLAS BESHAROV'S FEB 9 EDITORIALPAGE ARTICLE WORKING TO MAKE WELFARE A CHORE ADVOCATING WELFARE REFORM THAT WOULD FORCE UNWED MOTHERS TO ENTER PROGRAMS TO FINISH HIGH SCHOOL AND THEN WORK IN PUBLIC SERVICE JOBS MISSES THE POINT THE REAL DAMAGE TO SOCIETY IS NOT FROM THE TAX DOLLARS PAID TO WOMEN WHO DON'T WORK BUT FROM THE CHAOS CAUSED BY THE FATHERLESS CHILDREN WE INVITE THEM TO PRODUCE MR BESHAROV SAYS A GOOD EDUCATION AND REAL JOB OPPORTUNITIES ARE THE BEST CONTRACEPTIVES THEN HE SUGGESTS A WELFARE REFORM THAT WOULD RESULT IN AN EVEN BIGGER PRODUCTION OF FATHERLESS CHILDREN MR BESHAROV SHOULD PUT HIMSELF IN THE PLACE OF AN INNERCITY TEENAGE GIRL WHO HAS LITTLE CHANCE FOR A GOOD EDUCATION AND A JOB IF THIS GIRL PRODUCES A FATHERLESS CHILD SHE IS REWARDED BY AN INCOME AN APARTMENT FOOD STAMPS HEALTH CARE FOOD EDUCATION PROGRAMS JOB TRAINING AND NOW EVEN A GUARANTEED JOB IF THIS GIRL STAYS CHILDLESS SHE GETS NOTHING THESE GIRLS ARE NOT VICTIMS BUT ARE ENGAGING IN DELIBERATE BEHAVIOR THE CONSEQUENCES OF WHICH WE REWARD WHY ARE WE UPSET THAT WE ARE GETTING MORE OF WHAT WE'RE PAYING FOR THE SOLUTION IS TO ELIMINATE OR REDUCE THE REWARD NOT ADD TO IT 9402250068 940225 LETTERS TO THE EDITOR A BLUE ROSE IS BLUE EVEN IF IT'S GREEN IN HER JAN 27 ARTICLE PATTI HAGAN SUGGESTS THAT THE BURPEE CO MISLEADS THE CONSUMER THROUGH FALSE ADVERTISING A MANIACAL GARDENER'S GUIDE TO CATALOGORRHEA LEISURE & ARTS SPECIFICALLY SHE ACCUSES US OF DESCRIBING A PRODUCT AS A ROSE WHEN IT IS NOT ONE AND OF USING THE DESIGNATION BLUE FOR A COLOR THAT IS NOT BLUE SHE IS WRONG ON BOTH COUNTS SHE MISLEADS THE READER BY ELIMINATING PHRASES FROM OUR DESCRIPTIVE COPY THAT MAKE IT CLEAR THAT OUR LISIANTHUS IS A LISIANTHUS AND NOT A ROSE FURTHERMORE THE PRACTICE OF NAMING A LOOKALIKE PRODUCT AFTER THE PRODUCT IT RESEMBLES IS EXTENSIVE IN OUR INDUSTRY IN NO WAY IS IT MISLEADING AS RECENTLY AS 1993 PARK SEED NAMED A ROSELIKE SUMMER BULB THE BLUE ROSE ON COLOR MS HAGAN IS AGAIN FLAGRANTLY WRONG THE HORTICULTURE INDUSTRY HAS USED THE DESIGNATION BLUE FOR ALL HUES IN THE COLOR SPECTRUM SO DEFINED AS BLUE FROM VIOLET TO GREEN I'VE SEEN INDIGO NAVY OCEANBLUE SKYBLUE LILAC AND LILACPURPLE ALL DESCRIBED AS BLUE IN HORTICULTURE INDEED NO ONE HAS DISPUTED THE LISIANTHUS COLOR DESCRIBED AS BLUE IN ALL CATALOGS I HAVE CONSULTED THE LISIANTHUS OF A HUE SIMILAR TO THE BLUE ROSE IS LISTED AS BLUE ITS COMMON NAME IS THE TEXAS BLUEBELL ITS POPULARITY IN HOLLAND IS DUE TO ITS HAVING THE SAME COLOR AS THE DUTCH FLAG BLUE 9402250067 940225 THE AMERICAS SHADES OF THE PAST IN ARGENTINA'S ECONOMIC BOOM BY EDWARD SCHUMACHER BUENOS AIRES FOR A VISITOR RETURNING AFTER MANY YEARS IT'S LIKE OLD TIMES IN THE LATE 1970S AND EARLY 1980S AN ECONOMICS MINISTER HAILED AS A SAVIOR STRIDING ACROSS THE PAMPAS TURNED TO FREE TRADE AND THE EXCHANGE RATE TO SLAY INFLATION AND RESTRUCTURE INDUSTRY THE SAVIOR THEN WAS A LEAN PATRICIAN JOSE ANTONIO MARTINEZ DE HOZ USING A CRAWLING PEG CALLED LA TABLITA DEVALUATION WAS PRESET TO CRAWL SO SLOWLY AGAINST THE DOLLAR THAT THE PESO BECAME OVERVALUED FOREIGN CAPITAL WASHED IN FORTUNES WERE MADE IN SPECULATIVE VENTURES AND ARGENTINES TRAVELED THE WORLD LIKE MODERN CONQUISTADORS TODAY THE COUNTRY AGAIN IS ON AN ECONOMIC ROLL BOOSTED BY FOREIGN CAPITAL AN OPEN ECONOMY AND A STRONG AND MANY SAY OVERVALUED CURRENCY AND BEHIND THE CURRENT BOOM IS ANOTHER ECONOMIC SUPERSTAR THE INTELLECTUALLY IMPERIOUS STREETFIGHTER ECONOMICS MINISTER DOMINGO CAVALLO MR CAVALLO'S HOT TEMPER IS SUCH THAT RECENTLY HE PUBLICLY CHASTISED SOME OF ARGENTINA'S MOST POWERFUL BUSINESS LEADERS AS SOCK SUCKERS FOR ALLEGEDLY PLAYING UP TO HIM AT A DINNER STILL LIKE HIS PREDECESSOR MR CAVALLO IS HELD IN AWE OF COURSE THERE ARE SUBSTANTIAL DIFFERENCES THE PESO UNDER MR MARTINEZ DE HOZ WAS NOT FREELY CONVERTIBLE AS TODAY FISCAL REFORM WAS UNDERMINED BY A WEAPONSBUYING SPREE AND PRIVATIZATION OF MONEYDRAINING STATE ENTERPRISES WAS A PIPE DREAM NEVERTHELESS THERE IS A CRITICAL SIMILARITY ONCE AGAIN THE ARGENTINE ECONOMY IS LOCKED IN A RACE WITH TIME TO IMPROVE PRODUCTIVITY BEFORE A DEVALUATION BECOMES NECESSARY WHAT IS UNDENIABLE IS THE EXTRAORDINARY SUCCESS OF MR CAVALLO'S REVOLUTIONARY SUPPLYSIDE EXPERIMENT FOR THE PAST THREE YEARS ARGENTINA HAS AVERAGED ECONOMIC GROWTH OF 8 A YEAR SECOND ONLY TO CHINA AND ACHIEVED A MONETARY STABILITY THAT TOOK MEXICO EIGHT YEARS TO ACCOMPLISH AND CHILE 17 YEARS BEHIND SUCH NUMBERS LIE THE WORLD'S MOST SWEEPING PRIVATIZATION PROGRAM TAX INCENTIVES TRADE OPENINGS AND MOST IMPORTANT A RADICAL MONETARY STROKE CALLED CONVERTIBILITY EVERY PESO IN CIRCULATION IS BACKED BY A US DOLLAR IN RESERVES WHICH DO INCLUDE A SMALL PERCENTAGE OF GOVERNMENT BONDS AND CAN BE EXCHANGED FREELY AT A RATE FROZEN BY LAW OF 1 TO 1 RAMPANT CURRENCY SPECULATION STOPPED DEAD IN ITS TRACKS CHOKING INFLATION AND RESTORING VALUE TO THE CURRENCY BUT THE BILLIONS OF DOLLARS FLOODING THE COUNTRY AS A RESULT ARE A MIXED BLESSING THAT CUSHION HAS ALLOWED ARGENTINES TO FORESTALL THE CRITICAL REFORMS AND INCENTIVES NEEDED TO IMPROVE PRODUCTIVITY THE PRIVATE SECTOR MUST BE RESTRUCTURED TO BECOME INTERNATIONALLY COMPETITIVE AN ADMITTEDLY POLITICALLY EXPLOSIVE PROCESS THAT WILL ENTAIL INCREASED BANKRUPTCIES UNEMPLOYMENT AND SOCIAL SUFFERING HOWEVER ARGENTINA MUST USE ITS NEW CAPITAL AND MONETARY STABILITY TO BUILD UP PRODUCTIVE CAPACITY THIS WOULD ALSO HELP ARGENTINA BECOME A CANDIDATE TO JOIN THE NORTH AMERICAN FREE TRADE AGREEMENT AS PRESIDENT CARLOS MENEM SO PASSIONATELY DESIRES IN THIS REGARD THE CONVERTIBILITY LAW HAS ITS DRAWBACKS CONSUMER PRICE INFLATION THOUGH LOW TODAY STILL HAS TOTALED MORE THAN 50 SINCE THE FREEZING OF THE EXCHANGE RATE THREE YEARS AGO AS A RESULT THE PESO IS CLEARLY OVERVALUED BUENOS AIRES IS MUCH MORE EXPENSIVE IN DOLLARS THAN NEW YORK AND CHEAP IMPORTS ARE HELPING DRIVE A GROWING NUMBER OF COMPANIES AND FARMS INTO BANKRUPTCY UNEMPLOYMENT HISTORICALLY NEGLIGIBLE HAS SHOT UP TO MORE THAN 10 TODAY REAL WAGES HAVE FALLEN BY FREEZING THE EXCHANGE RATE MR CAVALLO HAS REMOVED A COMMON MECHANISM OF ADJUSTMENT THAT GOVERNMENTS USE TO MAKE THEIR EXPORTS MORE COMPETITIVE ON WORLD MARKETS HE IS THUS FORCING EXPORTERS TO RELY ON THEIR OWN IMPROVEMENTS IN PRODUCTIVITY OR WHAT HE CALLS THE REAL DETERMINANTS OF COMPETITIVENESS IF THEY ARE TO SURVIVE THE CHALLENGE IS DAUNTING ARGENTINE LABOR COSTS REMAIN BY FAR THE HIGHEST IN LATIN AMERICA AND ITS LABOR LAWS REMAIN AMONG THE MOST RIGID FOUND ANYWHERE DESPITE INCREASED IMPORTS OF CAPITAL GOODS MANY COMPANIES ARE SO ANTIQUATED THAT THE GOVERNMENT ESTIMATES THAT TWOTHIRDS OF THOSE IN THE FOOD SECTOR ALONE SHOULD FOLD OR MERGE AND DOMESTIC SAVINGS AND INVESTMENT ARE STILL TOO LOW FOR A COUNTRY SEEKING TO TAKE OFF IN SUM EXPORTS ARE SHACKLED BY A HIGH EXCHANGE RATE HIGH COSTS AND LOW INTERNAL INVESTMENT A TRIPLE WHAMMY SO WHILE IMPORTS HAVE NEARLY QUADRUPLED SINCE 1990 EXPORTS HAVE BEEN RELATIVELY FLAT THAT MEANT A 35 BILLION TRADE DEFICIT LAST YEAR AND A CURRENT ACCOUNTS DEFICIT OF NEARLY 9 BILLION BOTH OF WHICH ARE WIDENING THE FLOOD OF FOREIGN CAPITAL AN ESTIMATED 165 BILLION LAST YEAR WILL NOT PLUG THE GAP FOREVER FOREIGN CAPITAL IN THE END DEMANDS GROWTH OR ITS VERY REAL PROSPECT YET THE TWO MAJOR SOURCES OF GROWTH OVER THE PAST THREE YEARS CREDIT AND CONSUMPTION HAVE JUST ABOUT RUN THEIR COURSE THERE ARE SOME ENCOURAGING SIGNS INTERNATIONAL GRAIN PRICES ARE UP AS IS INDUSTRIAL ACTIVITY IN SECTORS SUCH AS AUTOMOBILES HOUSEHOLD APPLIANCES AND CEMENT NEWLY APPROVED PRIVATE PENSION PLANS EVENTUALLY WILL HELP INCREASE INVESTMENT WHILE SOME MINOR TAX CUTS ARE CUTTING COSTS BUT THAT IS NOT ENOUGH THE GOVERNMENT MUST TACKLE LABOR REFORM WHICH THE EXECUTIVE AND LEGISLATIVE BRANCHES HAVE BEEN PUTTING OFF SINCE AUGUST IT MUST ALSO ADDRESS TRUE GOVERNMENT REFORM NOT ONLY HAS GOVERNMENT SPENDING GONE UP BUT MUCH OF IT IS STILL SIPHONED OFF BY CORRUPTION AND INEFFICIENCY WITH LITTLE REMAINING FOR SUCH LEGITIMATE NEEDS AS SAFETY NETS EDUCATION AND REFORM OF THE JUDICIAL SYSTEM PERHAPS MOST IMPORTANT IS THE NEED TO REGAIN A NATIONAL CONSCIOUSNESS OF THRIFT HARD WORK AND SHARED SACRIFICE LOST THROUGH YEARS OF ECONOMIC INSECURITY AND BROKEN PROMISES THE FEAR IS THAT WITHOUT GREATLY IMPROVED PRODUCTIVITY PRESSURE WILL GROW SOONER OR LATER FOR PESO DEVALUATION A DEVALUATION WOULD UNDERMINE AN EMERGING LONGTERM BOND MARKET SUCH AS A RECENT 1 BILLION GLOBAL ISSUE OF ARGENTINE BONDS AND CREATE DOMESTIC CHAOS ACCORDING TO A STUDY BY THE ARGENTINE INSTITUTE OF FINANCIAL EXECUTIVES MORE THAN 60 OF PRIVATE COMPANY DEBT IS IN DOLLARS LITTLE OF THAT IS HEDGED THERE IS A PRECEDENT THE ECONOMY APPEARED ON THE VERGE OF TURNING THE CORNER IN 1981 WHEN CHANGES IN THE RULING JUNTA FORCED MR MARTINEZ DE HOZ OUT SETTING OFF THE UNRAVELING OF LA TABLITA THE GOVERNMENT FRANTICALLY STEPPED IN WITH A SERIES OF EXCHANGE RATE GUARANTEES FOR COMPANIES INDEBTED IN DOLLARS BUT THE ECONOMY COLLAPSED THE LAST OF THOSE GUARANTEES WAS SIGNED BY THE PRESIDENT OF THE THE CENTRAL BANK IN THE SUMMER OF 1982 HIS NAME DOMINGO CAVALLO MR SCHUMACHER WHO COVERED SOUTH AMERICA FOR THE NEW YORK TIMES IS AN ADVISER TO DOW JONES & CO 9402250066 940225 YOUR MONEY MATTERS WEEKEND REPORT TAXES 1994 BULLETPROOF YOUR INCOMETAX RETURN TO AVOID BECOMING AN IRS TARGET BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL YOU SORT THROUGH THE MAIL AND SUDDENLY YOUR BLOOD RUNS COLD THERE AMID THE BILLS AND THE JUNK IS THE LETTER TAXPAYERS DREAD THE INTERNAL REVENUE SERVICE WANTS TO ASK YOU A FEW QUESTIONS FEW THINGS STRIKE MORE FEAR INTO PEOPLE'S HEARTS THAN THE PROSPECT OF THE IRS'S EXAMINING THEIR TAX RETURN FOR MANY PEOPLE THE FEAR IS UNFOUNDED AUDIT RATES HAVE DROPPED OVER THE YEARS TO LESS THAN 1 OF ALL TAX RETURNS IN 1992 BUT FOR OTHERS THE INCREASINGLY SOPHISTICATED COMPUTERS AND PROCEDURES AT THE IRS MAKE THE CHANCES MUCH GREATER THAT THEIR RETURN WILL BE SCRUTINIZED IN SOME WAY WHILE THE TYPICAL MIDDLEINCOME SALARIED WORKER INDEED HAS ONLY THE SLIMMEST CHANCE OF EVER HEARING FROM THE IRS THE ODDS START TO RISE THE HIGHER YOUR INCOME OR THE MORE SOPHISTICATED YOUR RETURN NEARLY 5 OF TAXPAYERS WITH INCOMES OF MORE THAN 100000 WERE AUDITED IN 1992 THE IRS HAS MANY WAYS OF EXAMINING RETURNS SHORT OF A FULLFLEDGED AUDIT AND SOME RETURNS WILL ALWAYS RECEIVE MORE ATTENTION THAN OTHERS AS IRS AGENTS HAVE BEEN TRAINED TO EXAMINE CERTAIN TYPES OF RETURNS THAT HISTORICALLY TEND TO UNDERSTATE THE TAX DUE TO STAY OFF THE IRS'S RADAR SCREEN IT'S IMPORTANT TO KNOW WHAT CATCHES THE IRS'S ATTENTION THAT WAY YOU MAY BE ABLE TO AVOID OR AT LEAST MINIMIZE THE SORTS OF THINGS THAT ARE APT TO SUBJECT YOUR RETURN TO UNNECESSARY SCRUTINY KNOWING WHAT'S LIKELY TO SOUND ALARMS CAN ALSO HELP YOU KNOW WHEN TO PROVIDE ADDITIONAL INFORMATION THAT MAY HEAD OFF AN AUDIT BY EXPLAINING LEGITIMATE ENTRIES THE IRS IS LIKELY TO QUESTION THE IRS RELIES HEAVILY ON INFORMATION FORMS SUCH AS W2S FROM EMPLOYERS 1099S FROM BANKS BROKERAGE FIRMS AND MUTUAL FUNDS AND 1098S FROM MORTGAGE LENDERS TO FLAG RETURNS THAT OMIT TAXABLE INCOME OR CLAIM EXCESSIVE DEDUCTIONS IN MANY SUCH CASES THE IRS SENDS OUT LETTERS REQUESTING VERIFICATION OF MISSING INCOME PROOF FOR A DEDUCTION OR SOME OTHER FORM OF CLARIFICATION PARTLY BECAUSE OUR COMPUTER SYSTEM IS SO SOPHISTICATED WE'LL CATCH THINGS THAT WOULD PREVIOUSLY HAVE BEEN AUDITED SAYS ROBERT KOBEL PUBLIC AFFAIRS OFFICER FOR THE IRS IN NEW YORK BUT IN ADDITION TO CHECKING RETURNS FOR MISSING ITEMS IRS COMPUTERS ARE ALSO PROGRAMMED TO GIVE EACH RETURN A SCORE KNOWN AS A DISCRIMINANT FUNCTION OR DIF THAT MEASURES DISPROPORTIONATE LEVELS OF DEDUCTIONS CREDITS AND OTHER ITEMS BASED ON TYPICAL RATIOS FOR VARIOUS INCOME LEVELS TAXPAYERS WITH THE HIGHEST DIFSCORED RETURNS ARE AUDITED OTHER RETURNS WITH HIGH BUT NOT NECESSARILY THE HIGHEST SCORES ARE PULLED FOR AUDIT BECAUSE THEY INCLUDE THE TYPES OF ENTRIES THAT THE IRS HAS FOUND TO BE ASSOCIATED WITH UNDERPAYMENT OF TAXES WHAT SORT OF THINGS ARE APT TO RAISE SUSPICIONS OF THE IRS SLEUTHS THE IRS DOESN'T DISCLOSE THE COMPONENTS OF DIF SCORES BUT TAX PROFESSIONALS SAY THE ODDS ARE GOOD THAT AN AGENT AT SOME LEVEL OF THE IRS WILL LOOK YOUR RETURN OVER IF IT INCLUDES THE HOMEOFFICE DEDUCTION ESPECIALLY FOR THE FIRST TIME SCHEDULE C PROFIT OR LOSS FROM BUSINESS ESPECIALLY ONE SHOWING A LOSS SIGNIFICANT TRAVEL OR ENTERTAINMENT DEDUCTIONS HIGH CASUALTYLOSS DEDUCTIONS BECAUSE THE IRS ASSUMES PEOPLE TEND TO OVERVALUE THEIR LOST OR DESTROYED PROPERTY PASSIVE LOSSES SUCH AS REAL ESTATE OR PARTNERSHIP WRITEOFFS OR COMPLICATED TAX SHELTERS IT USUALLY TAKES ABOUT A YEAR FOR THE RETURNS TO MAKE THEIR WAY THROUGH THE PIPELINE SO HIGHSCORERS WON'T BE NOTIFIED FOR AT LEAST THAT LONG DESPITE MOST TAXPAYERS' FEARS OF AN AUDITING IRS AGENT SITTING FORBIDDINGLY IN THEIR HOME SUCH FIELD EXAMS ARE PRIMARILY FOR BUSINESS RETURNS NOT PERSONAL 1040S SAYS JOHN J MONACO ASSISTANT IRS COMMISSIONER FOR EXAMINATIONS IF YOU CRINGE AT THE THOUGHT OF ANY IRS SCRUTINY YOU CAN DO A FEW THINGS TO BE AN IRS WALLFLOWER FIRST OF ALL DON'T MAKE MINDLESS MISTAKES THAT WILL HOLD UP PROCESSING YOUR RETURN SUCH AS FORGETTING TO SIGN IT OMITTING SOME OF THE W2S YOU RECEIVED OR NEGLECTING TO REPORT INCOME INCLUDED ON A 1099 ALSO IF YOU ARE PAYING ALIMONY OR TAKING A TAX CREDIT FOR CHILDCARE EXPENSES YOU MUST PROVIDE THE IRS WITH SOCIAL SECURITY NUMBERS THEY ASK FOR SINCE THE IRS GETS MANY OF THE SAME INCOME STATEMENTS YOU DO MAKE SURE AN AGENT CAN EASILY SEE THAT YOU HAVE REPORTED ALL YOUR TAXABLE INCOME EACH INDIVIDUAL ITEM OF INCOME SHOULD BE LISTED CLEARLY ON YOUR RETURN TAX PROS SAY FOR EXAMPLE THOSE RECEIVING INTEREST FROM INVESTMENTS MIGHT GET THREE OR FOUR 1099INTS FROM VARIOUS BANKS OR BROKERAGE FIRMS INSTEAD OF ADDING ALL OF THEM TOGETHER ON YOUR SCHEDULE B LIST EACH ONE SEPARATELY ON ITS OWN LINE SUGGESTS STEPHEN DEFILIPPIS AN ENROLLED AGENT FROM GLEN ELLYN ILL AN ENROLLED AGENT IS A TAX PROFESSIONAL LICENCED BY THE FEDERAL GOVERNMENT WHO CAN REPRESENT TAXPAYERS BEFORE THE IRS THE COMPUTER WILL LOOK FOR THIS AND IF IT DOESN'T SEE IT YOU ARE GOING TO BE ASKED WHY SAYS SHELDON GANIS A TAX PARTNER WITH GRANT THORNTON IN NEW YORK IF YOU SENSE THAT ONE OF YOUR DEDUCTIONS IS INORDINATE ATTACH PROOF THAT IT IS LEGITIMATE RIGHT ALONG WITH YOUR RETURN TAX PROS SUGGEST SIMILARLY IF YOU TAKE YOUR NORMAL LEVEL OF DEDUCTIONS BUT YOUR INCOME HAS DROPPED PERHAPS BECAUSE YOU WERE LAID OFF FOR PART OF THE YEAR AN ATTACHED EXPLANATION MIGHT FORESTALL A LETTER OR REQUEST FOR AN IRS OFFICE VISIT IF THERE IS SOMETHING THAT IS CONFUSING BUT CORRECT EXPLAIN IT IN A STATEMENT ATTACHED TO YOUR RETURN SAYS ROBERT J GARNER NATIONAL DIRECTOR OF PERSONAL FINANCIAL COUNSELING AT ERNST & YOUNG IN NEW YORK BE DIRECT AND CONCISE EVEN IF PEOPLE DON'T OWE TAX ON THE FULL AMOUNT LISTED ON THEIR 1099 OR OTHER STATEMENT IT'S BETTER TO LIST IT CLEARLY ON THE RETURN AND THEN SUBTRACT ANY OFFSETTING DEDUCTIONS OR ADJUSTMENTS FOR INSTANCE SAY YOU HAVE 100000 OF INTEREST ON A BOND BUT WHEN YOU BOUGHT THE BOND IT ALREADY HAD 30000 OF ACCRUED INTEREST FOR A NET TAXABLE INCOME OF 70000 RATHER THAN WRITE 70000 ON THE RETURN LIST WHAT'S REPORTED TO YOU AND THEN SUBTRACT OUT THE ACCRUED 30000 IF YOU DON'T DO IT THAT WAY YOU WILL DEFINITELY GENERATE A LETTER SAYS MR GANIS IF YOU KNOW A 1099 OR W2 IS WRONG GET THE ISSUING BANK BROKERAGE FIRM OR EMPLOYER TO CORRECT IT RATHER THAN TRY TO EXPLAIN TO THE IRS THAT THE ISSUER IS WRONG ONCE A NUMBER IS IN THE IRS'S COMPUTER SYSTEM IT'S VERY HARD TO GET IT OUT THE CLEANEST WAY TO RESOLVE THAT IS TO GO BACK TO THE ISSUER AND HAVE THEM SEND YOU AND THE IRS A CORRECTED FORM SAYS MR GANIS THOSE WHO KNOW AHEAD OF TIME THAT THEY WILL TRIGGER SOME DEGREE OF IRS REVIEW SHOULD TAKE WHAT THEY ARE ENTITLED TO BUT FORTIFY THEIR RECORDS FOR INSTANCE IF YOU ARE CLAIMING PART OF YOUR MORTGAGE INTEREST UTILITIES AND OTHER HOME EXPENSES FOR A HOMEOFFICE DEDUCTION MAKE SURE YOU HAVE A LOG THAT PROVES YOU USE THE SPACE EXCLUSIVELY AND REGULARLY AS YOUR PRINCIPAL PLACE OF BUSINESS ALSO SELFEMPLOYED PEOPLE WHO ARE AUDITED CAN EXPECT TO BE ASKED TO VERIFY THEIR DEDUCTIONS AND PROVE THAT THEY HAVEN'T HIDDEN ANY INCOME TAX ADVISERS SAY THEY SHOULD KEEP A FILE OF BANKDEPOSIT RECORDS AND EXPENSE RECEIPTS DESPITE YOUR BEST EFFORTS SOMETIMES THE WORST AUDITS ARE RANDOM AND UNAVOIDABLE FOR YEARS THE IRS HAS SELECTED AROUND 70000 TAX RETURNS EVERY THREE YEARS FOR EXHAUSTIVE AUDITS KNOWN AS THE TAXPAYER COMPLIANCE MEASUREMENT PROGRAM THESE AUDITS ARE ESSENTIALLY RESEARCH TOOLS TO HELP THE IRS PINPOINT PROBLEM AREAS BUT CAN RESULT IN SIGNIFICANT ADDITIONAL TAXES DUE THE NEXT WAVE OF THESE BIG AUDITS IS SCHEDULED TO BEGIN IN OCTOBER 1995 AND WILL COVER THE 1994 RETURNS OF APPROXIMATELY 93000 INDIVIDUALS 68000 WITH SOME FORM OF BUSINESS INCOME SUCH AS THAT REPORTED ON A SCHEDULE C OR PARTNERSHIP RETURN AND 25000 WITHOUT BUSINESS INCOME THOSE WHO'VE BEEN THROUGH ONE OF THESE AUDITS SAY IT'S GRUELING TAXPAYERS MUST PRODUCE PROOF FOR EVERY LINE OF THEIR RETURN INCLUDING BIRTH CERTIFICATES FOR THEIR DEPENDENTS MARRIAGE LICENSE TO PROVE THEY CAN FILE JOINTLY AND RECEIPTS FOR EVERY WRITEOFF EVERY DEDUCTION HAS TO BE DOCUMENTED SAYS MR GANIS STILL HE SAYS PHILOSOPHICALLY EVEN IF AN ITEM IS GOING TO RAISE THE IRS'S EYEBROWS IF IT'S DOCUMENTED AND PROPER WHY WORRY 9402250065 940225 TENNECO'S WALSH GIVES UP CEO'S POST REMAINS CHAIRMAN MEAD IS SUCCESSOR BY CALEB SOLOMON AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET JOURNAL HOUSTON MICHAEL WALSH STEPPED DOWN AS CHIEF EXECUTIVE OFFICER OF TENNECO INC AFTER TELLING DIRECTORS THAT TREATMENT HE'S RECEIVING FOR A BRAIN TUMOR IS IMPAIRING HIS ABILITY TO RUN THE COMPANY THE COMPANY'S BOARD MEETING BY TELEPHONE CONFERENCE CALL YESTERDAY UNTIL AFTER THE CLOSE OF NEW YORK STOCK EXCHANGE TRADING ELECTED DANA MEAD 58YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER TO THE ADDITIONAL POST OF CHIEF EXECUTIVE MR WALSH HAD RECRUITED MR MEAD IN 1992 TO JOIN TENNECO MR WALSH 51 WHO REMAINS CHAIRMAN WILL BE ON INDEFINITE MEDICAL LEAVE WE ALL HOPE HE WILL RECUPERATE AND RETURN BUT WE DON'T KNOW SAID ARTHUR HOUSE VICE PRESIDENT CORPORATE AFFAIRS MR MEAD'S SUCCESSION WAS EXPECTED THE TIMING WASN'T AND MR WALSH'S DECISION CAME AS A SURPRISE TO SOME OF HIS CLOSEST ASSOCIATES LAST MONTH MR WALSH UNDERWENT SURGERY TO REMOVE DEAD TISSUE REMAINING FROM HIS BRAIN TUMOR DISCOVERED LAST YEAR AND AT THE TIME THE COMPANY SAID HIS PROGNOSIS WAS FAVORABLE I THINK WE WERE ALL ENCOURAGED AND WE'RE SADDENED SAID MR HOUSE MR WALSH'S DOCTORS TELL HIM THE CANCER ISN'T BACK BUT HE TOLD DIRECTORS THAT THE CUMULATIVE EFFECTS OF SURGERY CHEMOTHERAPY AND OTHER TREATMENTS HAVE BEEN MORE DEMANDING THAN EXPECTED MR MEAD SAID THAT MR WALSH WHO HE HASN'T SEEN SINCE LATE JANUARY HAS SOUNDED FATIGUED IN RECENT TELEPHONE CONVERSATIONS AND HAS DESCRIBED CONTINUING WEAKNESS ON HIS LEFT SIDE THE MOST RECENT OPERATION WAS TO TAKE CARE OF THAT BY RELIEVING PRESSURE FROM THE NERVES BUT THOSE SYMPTOMS ARE PERSISTING THE SUDDENNESS OF MR WALSH'S ANNOUNCEMENT LEFT TENNECO UNCERTAIN AS TO WHETHER IT WILL NAME A NEW PRESIDENT AND CHIEF OPERATING OFFICER OR WHETHER MR MEAD WILL RETAIN THOSE TITLES IT'S UNCERTAIN HOW WALL STREET WILL REACT TO MR WALSH'S LEAVE THE DAY TENNECO ANNOUNCED IN THE SUMMER OF 1991 THAT HE WAS TO JOIN THE COMPANY THE STOCK PRICE SURGED 325 A SHARE IN COMPOSITE TRADING YESTERDAY ON THE BIG BOARD TENNECO FELL 1375 OR 24 TO CLOSE AT 56625 AT TENNECO MR MEAD'S RESPONSIBILITIES GREW QUICKLY INCLUDING HEADING UP THE COMPANY'S LARGEST SUBSIDIARY CASE A LONGTROUBLED FARM AND CONSTRUCTIONEQUIPMENT MAKER MR MEAD WAS CREDITED WITH RETURNING CASE TO PROFITABILITY POSTING A 1993 OPERATING PROFIT OF 82 MILLION VS A LOSS OF 260 MILLION A YEAR EARLIER TENNECO IS A DIVERSE COMPANY WITH INTERESTS THAT INCLUDE NATURALGAS PIPELINES AUTOMOTIVE PARTS PACKAGING CHEMICALS AND SHIPBUILDING IN 1993 THE COMPANY REPORTED NET INCOME OF 426 MILLION OR 244 A SHARE ON REVENUE OF 1326 BILLION MR WALSH WAS DIAGNOSED AS HAVING A MIDGRADE BRAIN TUMOR IN JANUARY 1993 AND HE UNDERWENT A TREATMENT OF RADIATION AND CHEMOTHERAPY MR MEAD HAS FREQUENTLY FUNCTIONED AS CHIEF EXECUTIVE OFFICER SINCE MR WALSH'S ILLNESS WAS DIAGNOSED HE PRESENTED THE COMPANY'S YEAREND 1993 FINANCIAL RESULTS TO WALL STREET ANALYSTS EARLIER THIS MONTH AND HE HAS BEEN IN CHARGE SINCE MR WALSH'S FOLLOWUP SURGERY THE NEW CHIEF EXECUTIVE IS A SELFDESCRIBED COMPULSIVE ORGANIZER WHO ALWAYS CARRIES THREE BRIEFCASES ON BUSINESS TRIPS ONE IS FOR CASE ANOTHER IS TENNECO HAVETODO' STUFF AND THE THIRD IS READING MATERIAL SUCH AS A BIOGRAPHY OF THEODORE ROOSEVELT AND DAVID HALBERSTAM'S BOOK ON THE CULTURE OF THE 1950S HE SAID MR MEAD SAID HE DOESN'T PLAN MAJOR CHANGES AT LEAST NOT IMMEDIATELY WE HAVE TENNECO ON A TERRIFIC TRAJECTORY OUR COST STRUCTURE IS IMPROVED OUR BUSINESS POSITIONS ARE BETTER AND WE HAVE CLEANED UP OUR BALANCE SHEET WE HAVE FINANCIAL FLEXIBILITY THAT WE DIDN'T HAVE BEFORE WE'RE READY TO ENTER A NEW PHASESUSTAINED GROWTH 9402250064 940225 BUSINESS BRIEF BELLSOUTH CORP RAM VENTURE SIGNS PACT WITH DAVIDGE DATA SYSTEMS RAM MOBILE DATA SIGNED AN AGREEMENT WITH DAVIDGE DATA SYSTEMS CORP TO PROVIDE A SERVICE THAT WOULD ENABLE BROKERS TO EXECUTE ORDERS WITH LAPTOP COMPUTERS OVER A WIRELESS NETWORK DAVIDGE WHICH OPERATES A DATACOMMUNICATIONS NETWORK FOR TRADING ORDERS FOR BROKERAGE HOUSES SAID THE WIRELESS TRANSFER OF THE DATA WOULD BE AN ALTERNATIVE TO EXPENSIVE LEASED LINES NEW YORKBASED DAVIDGE SAID IT WILL MAKE THE WIRELESS SERVICE AVAILABLE FOR 400 A MONTH WHILE A LEASED LINE CAN COST AS MUCH AS 1000 IN SOME AREAS OF THE COUNTRY DAVIDGE SAID THE WIRELESS SYSTEM WILL ALLOW BROKERS TO PLACE OR EXECUTE ORDERS FROM AREAS OUTSIDE THE OFFICE LIKE HOTELS THE USER WOULD REQUIRE A LAPTOP OR NOTEBOOK COMPUTER AND A RADIO MODEM DAVIDGE SAID RAM MOBILE DATA A BUSINESS VENTURE BETWEEN BELLSOUTH CORP ATLANTA AND RAM BROADCASTING CORP NEW YORK OPERATES WIRELESS NETWORKS FOR THE TRANSFER OF DATA IN MORE THAN 6300 US CITIES 9402250063 940225 US SAID TO PROBE SETTLEMENTS MADE BY PRUDENTIAL UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US ATTORNEY'S OFFICE IN MANHATTAN IS INVESTIGATING ALLEGATIONS THAT PRUDENTIAL SECURITIES INC BROKERS MAY HAVE MISLED INVESTORS ABOUT THEIR LEGAL OPTIONS INVOLVING PARTNERSHIP SETTLEMENTS PEOPLE FAMILIAR WITH THE CASE SAID THE PROBE PART OF A BROADER INVESTIGATION OF THE BIG BROKERAGE FIRM'S LIMITEDPARTNERSHIP PRACTICES COMES AFTER SEVERAL PRUDENTIAL INVESTORS HAVE ACCUSED THEIR BROKERS IN PRIVATE LAWSUITS OF IMPROPERLY FORCING THEM TO ACCEPT SMALL SETTLEMENTS INVOLVING PORTFOLIOS OF PRUDENTIAL REALESTATE PARTNERSHIPS RATHER THAN BEING ADVISED OF OTHER LEGAL OPTIONS IN THE MOST RECENT LAWSUIT FILED IN LOS ANGELES SUPERIOR COURT LAST WEEK AN 81YEAROLD ROMAN CATHOLIC PRIEST ALLEGED THAT HE WAS DEPRIVED OF HIS LEGAL RIGHTS TO SEEK FULL RECOVERY FOR HIS DAMAGES BECAUSE HIS PRUDENTIAL BROKER IMPROPERLY PRODDED HIM TO ACCEPT A SMALL SETTLEMENT INVOLVING A PORTFOLIO OF VMS MORTGAGE INVESTORS PARTNERSHIPS THE PRIEST HAD UNSPECIFIED LOSSES IN HIS 100000 VMS INVESTMENT MANY VMS PARTNERSHIP INVESTORS ACCEPTED A 1991 SETTLEMENT IN WHICH THEY RECEIVED PENNIES ON THE DOLLAR DESPITE HUGE LOSSES IN THEIR PARTNERSHIP ACCOUNTS MEANWHILE SOME VMS INVESTORS WHO OPTED OUT OF THE SETTLEMENT HAD BETTER LUCK IN RETRIEVING MORE OF THEIR ORIGINAL INVESTMENT THROUGH LAWSUITS OR ARBITRATION THOSE VMS INVESTORS WHO PARTICIPATED IN THE 1991 SETTLEMENT ARE PARTICULARLY BITTER BECAUSE OTHER PRUDENTIAL PARTNERSHIP INVESTORS SUBSEQUENTLY HAVE RECEIVED FAR MORE IN SEPARATE ACCORDS LAST MONTH FOR INSTANCE ABOUT 115000 INVESTORS WHO BOUGHT PRUDENTIAL ENERGY PARTNERSHIPS RECEIVED A 90 MILLION SETTLEMENT THAT BROUGHT TO 124 BILLION OR AN AVERAGE OF 85 CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL 145 BILLION INVESTMENT CRIMINAL PROSECUTORS HAVE BEEN ASKING BROKERS AND OTHERS FOR INFORMATION PERTAINING TO THE CIRCUMSTANCES SURROUNDING CLIENT PARTICIPATION IN THE VMS SETTLEMENT THE PEOPLE FAMILIAR WITH THE MATTER SAID WE DON'T COMMENT ON RUMORS OR INNUENDO AS TO WHAT MIGHT OR MIGHT NOT BE ASKED BY CRIMINAL PROSECUTORS SAID A SPOKESMAN FOR PRUDENTIAL THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA THE US ATTORNEY'S OFFICE DOESN'T COMMENT ON PENDING INVESTIGATIONS LAST WEEK'S SUIT WAS PARTICULARLY NETTLESOME FOR PRUDENTIAL THE BROKER NAMED IN THE CASE JEFFERY DAGGETT HAD STARRED IN PRUDENTIAL'S NEW STRAIGHT TALK TELEVISION ADVERTISING CAMPAIGN AS REPORTED PRUDENTIAL HAS SINCE YANKED THE DAGGETT AD FOR FEAR OF COPYCAT SUITS BY OTHER INVESTORS MR DAGGETT HAS DECLINED TO COMMENT ON THE SUIT BUT PRUDENTIAL SAYS THE PRIEST MONSIGNOR MAXIMOS MARDELLI NEVER COMPLAINED ABOUT HIS ACCOUNT TO THE BROKER OR THE FIRM AND SAYS THAT MR DAGGETT'S COMPLIANCE RECORD IS SPOTLESS 9402250062 940225 IN BALTIC COLA WAR PEPSI RETAKES GROUND FOR COKE KEY LOCAL BOTTLER BECOMES FOUNTAIN OF ILL WILL BY WALL STREET JOURNAL STAFF REPORTERS MARK M NELSON IN LITHUANIA AND LAURIE M GROSSMAN IN ATLANTA UTENA LITHUANIA EUGENIJUS SALTIS A LITHUANIAN BEVERAGE MOGUL DOESN'T RECOMMEND THE PRODUCTS OF COCACOLA CO AT LEAST NOT FOR DRINKING RICH WOMEN HE TOLD A LITHUANIAN NEWSPAPER USE COCACOLA TO CLEAN THEIR SINKS IN OTHER INTERVIEWS HE HAS RAILED AGAINST COKE'S DETRIMENTAL EFFECTS ON BLOOD PRESSURE HE WARNS THAT FANTA ANOTHER COKE PRODUCT SHOULD BE HANDLED WITH EXTREME CAUTION BECAUSE THE STICKY ORANGEFLAVORED LIQUID WILL EAT THE VARNISH OFF FURNITURE AS HE SITS IN THE HEADQUARTERS OF UTENOS GERIMAI LITHUANIA'S LARGEST BREWERY AND SOFTDRINK FACTORY MR SALTIS SAYS HE HAS NO INTENTION OF EVER DOING BUSINESS AGAIN WITH COCACOLA CITING ITS AGGRESSIVENESS IN NEGOTIATIONS WITH HIM AND A YEARLONG ATTEMPT TO CONQUER LITHUANIA INSTEAD HE HAS MADE AN EXCLUSIVE BOTTLING AGREEMENT WITH THE PERFECT GENTLEMEN FROM PEPSI MR SALTIS'S FEUD WITH COCACOLA IS JUST ONE EXAMPLE OF THE BRUTAL BATTLE NOW UNDER WAY FOR THE FARFLUNG MARKETS OF THE FORMER SOVIET UNION THE COMPETITION FOR 300 MILLION PEOPLE SPREAD OVER 11 TIME ZONES FROM THE BALTIC SEA TO THE BERING STRAIT FREQUENTLY RELIES ON PEOPLE LIKE MR SALTIS THE LOCAL BOTTLERS WHO OFTEN MUST BE WOOED BY THE SOFTDRINK GIANTS COKE OFFICIALS DECLINE TO DISCUSS THE DETAILS OF THE RELATIONSHIP WITH MR SALTIS THE CLASH IN LITHUANIA HOME TO 38 MILLION IS JUST A DETOUR IN AN OTHERWISE SUCCESSFUL JOURNEY INTO EASTERN EUROPE AND THE FORMER SOVIET UNION OFFICIALS SAY AND COKE SAYS IT IS IN THE FINAL STAGES OF FINDING ANOTHER PARTNER I CAN ASSURE YOU THAT WE WILL BE PRODUCING COCACOLA IN LITHUANIA VERY SHORTLY THIS YEAR SAYS TORRE BU SENIOR VICE PRESIDENT OF COCACOLA INTERNATIONAL IN OSLO WHO IS IN CHARGE OF COKE'S EMERGING EURASIAN EMPIRE FOR PEPSI THE LITHUANIA STORY PROVIDES A RARE RAY OF HOPE AT A TIME WHEN MUCH OF THE FORMER SOVIET UNION HAS BEEN DEFECTING TO COKE EVEN THOUGH PEPSI OUTSOLD COKE THERE 3TO1 IN THE 1980S COKE SEEMS TO BE THE DRINK OF THE NEW FREE MARKETEERS PEPSI CONTINUES TO OUTPACE COKE IN RUSSIA AND IT IS RUNNING NECK AND NECK WITH ITS RIVAL IN THE FORMER SOVIET UNION OVERALL BUT NEW COKE BOTTLING DEALS IN CENTRAL AND EASTERN EUROPE HAVE CREATED A TIDAL WAVE MOVING IN COKE'S FAVOR LAST YEAR COKE PRODUCTS HAD 86 OF THE MARKET FOR WESTERN SOFT DRINKS IN LITHUANIA COMPARED WITH 14 FOR PEPSI PRODUCTS ACCORDING TO TRADE PUBLICATION BEVERAGE DIGEST PEPSI HOPES A BEACHHEAD IN LITHUANIA WILL HELP TURN THE TIDE UTENOS GERIMAI IS THE SINGLE LARGEST SOFTDRINK PLANT IN ALL OF THE BALTICS SAYS RICHARD NORTON PEPSICO INC'S SENIOR VICE PRESIDENT OF BUSINESS DEVELOPMENT FOR EASTERN EUROPE IT HAS VERY GOOD MANAGEMENT WE THINK THEY'RE VERY STRONG PARTNERS BY WORKING PERSONALLY TOGETHER WITH THEM WE WILL BE ABLE TO GET A COMPETITIVE ADVANTAGE OVER COCACOLA GETTING UTENOS GERIMAI TO SIGN AN EXCLUSIVE CONTRACT HAS BEEN SWEET REVENGE FOR PEPSI UTENOS GERIMAI STARTED OUT AS A PEPSI BOTTLER BACK IN THE EARLY 1980S BUT THE MARRIAGE WAS NEVER VERY SUCCESSFUL AND CERTAINLY NOT MONOGAMOUS THE TIES DATE FROM A 1972 VODKAFORCOLA BARTER DEAL WITH SOVIET AUTHORITIES THAT ALLOWED PEPSI TO SPREAD TO ALL THE FORMER REPUBLICS WITH PRACTICALLY NO COMPETITION FROM COKE UTENOS GERIMAI GOT ITS CONTRACT AROUND 1980 BUT IN THE EARLY 1990S WHEN FREEDOM STARTED LEAKING INTO THE BALTICS UTENOS GERIMAI STARTED BOTTLING COKE AND FANTA AT TIMES IN COMBINATION WITH PEPSI PRODUCTS BY MID1993 COKE HAD SET UP A BOTTLING PLANT IN ESTONIA AND A REGIONAL HEADQUARTERS IN LATVIA AND IT WAS NEGOTIATING ENERGETICALLY WITH UTENOS GERIMAI FOR THE FUTURE BUT MR SALTIS JUST DIDN'T LIKE COKE'S STYLE FOR ONE THING MR SALTIS SAYS HE GOT THE DISTINCT IMPRESSION THAT COCACOLA'S MAIN LONGTERM AIM WAS TO GET RID OF HIM IT PLANNED TO DO THIS HE SAYS WITH A SERIES OF LARGE INVESTMENTS GRADUALLY TAKING A LARGER SHARE OF UTENOS GERIMAI EQUITY LAST MAY COKE AGREED IN PRINCIPLE WITH UTENOS GERIMAI ON A NEW INVESTMENT TO WHICH EACH WOULD CONTRIBUTE 10 MILLION BUT UTENOS GERIMAI WOULD BE MAJORITY HOLDER OF THE VENTURE OUR PURPOSE IN THIS JOINT ENTERPRISE WAS ALWAYS VERY CLEAR WE WANTED TO HAVE MORE THAN HALF THE SHARES IN THIS JOINT VENTURE HE SAYS BUT BY THE END OF JUNE COKE HAD CHANGED ITS MIND SAYING THE INVESTMENT WOULD HAVE TO TOTAL 40 MILLION MR SALTIS SAYS THAT'S WHEN HE BEGAN TO HAVE DOUBTS TO TOP IT OFF COKE TOLD HIM IT FOUND A THIRD PARTY INTERESTED IN PUTTING UP MONEY NORWEGIAN BEER COMPANY RINGNES AS MR SALTIS SAYS HE WAS CONVINCED THAT RINGNES WANTED TO GET ITS HANDS ON HIS BREWERIES WHICH GENERATE TWOTHIRDS OF HIS REVENUE THIS WAS CLEARLY GOING TO BE A TWOAGAINSTONE AGREEMENT AND THEY WOULD IN THE FUTURE UNITE AND DECIDE EVERYTHING HE SAYS WHILE COKE SAYS IT WILL ANNOUNCE A NEW PARTNER SHORTLY BEVERAGEINDUSTRY OFFICIALS IN THE REGION SAY THAT'S EASIER SAID THAN DONE NOT ONLY DO MOST OF COKE'S OTHER POTENTIAL PARTNERS HAVE LESS TO OFFER IN TERMS OF TECHNOLOGY AND EQUIPMENT BUT BUILDING A NEW FACTORY FROM THE GROUND UP CAN BE MORE COSTLY HERE THAN IN MOREDEVELOPED COUNTRIES BECAUSE EQUIPMENT HAS TO BE IMPORTED SUCH AN INVESTMENT PROBABLY WOULDN'T PAY OFF THIS AND OTHER DIFFICULTIES OF DOING BUSINESS IN THE FORMER SOVIET UNION GIVE SOME COMFORT TO LOCAL DRINK MAKERS WE'RE AFRAID THAT THESE NEW INVESTMENTS BY PEPSI AND COCACOLA WILL BANKRUPT THE REST OF US SAYS AUDRIUS VIDZYS VICE PRESIDENT OF THE LITHUANIAN BREWERS ASSOCIATION WHOEVER GETS THE NEW COKE FACTORY WILL BE THE BEST IN LITHUANIA OVERNIGHT MR VIDZYS SAYS AND NOBODY ELSE WILL BE ABLE TO COMPETE BUT NOT IF MR SALTIS GETS HIS WAY HE PLANS TO IMPROVE HIS BREWERY AND TO BEGIN MAKING A GREATER VARIETY OF NATURAL FRUITBASED DRINKS IN ADDITION UNDER A LESS AMBITIOUS INVESTMENT PLAN SPONSORED BY PEPSI THAT GIVES THE US CONCERN NO EQUITY IN HIS COMPANY HE HOPES TO GET PEPSI PROMINENTLY BACK ONTO SHELVES AND EVEN IF HIS BATTLE AGAINST COKE ALSO SMEARS THE NAME OF PEPSI HE SEEMS DETERMINED NOT TO FLINCH IF SOMEBODY ASKS ME WHAT I DRINK HE SAYS I WILL BE HONEST AND SAY BEER 9402250061 940225 RAYTHEON TO REPURCHASE UP TO 12 MILLION SHARES SPECIAL TO THE WALL STREET JOURNAL LEXINGTON MASS RAYTHEON CO'S BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 12 MILLION SHARES OF ITS COMMON STOCK IN THE OPEN MARKET AS MARKET CONDITIONS MAY WARRANT FROM TIME TO TIME THE AUTHORIZED REPURCHASE IS AN ADDITION TO THE PLAN APPROVED BY THE BOARD IN NOVEMBER 1992 WHICH AUTHORIZED THE REPURCHASE OF AS MANY AS TWO MILLION SHARES PER YEAR OVER THE NEXT FIVE YEARS TO OFFSET THE INCREASE IN THE NUMBER OF SHARES OUTSTANDING CAUSED BY THE EXERCISE OF EMPLOYEESTOCK OPTIONS AS OF THE END OF ITS FISCAL YEAR ON DEC 31 RAYTHEON HAD 1352 MILLION SHARES OF COMMON STOCK OUTSTANDING 9402250060 940225 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF NOTES DUE MARCH 4 1999 PRICED AT PAR TO YIELD 58 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC STUDENT LOAN MARKETING ASSOCIATION 500 MILLION OF FLOATINGRATE NOTES DUE MARCH 7 2001 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WILL PAY QUARTERLY AND FLOAT WEEKLY 26 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE FIRST COUPON WILL BE SET MARCH 7 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AES CHINA GENERATING CO INITIAL OFFERING OF 10 MILLION CLASS A COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH & CO AND JP MORGAN SECURITIES INC AES CHINA IS A UNIT OF AES CORP AMC ENTERTAINMENT INC FOUR MILLION SHARES OF 175 CUMULATIVE CONVERTIBLE PREFERRED STOCK PRICED AT 25 EACH ACCORDING TO THE COMPANY DONALDSON LUFKIN & JENRETTE SECURITIES CORP BEAR STEARNS & CO AND SMITH BARNEY SHEARSON INC ARE MANAGING UNDERWRITERS CONCORD HOLDING CORP INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 1250 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO AND MONTGOMERY SECURITIES USX CAPITAL LLC 250 MILLION OF MONTHLY INCOME PREFERRED SHARES PRICED AT PAR FOR A DIVIDEND YIELD OF 875 ACCORDING TO MCM CORPORATEWATCH THE 10 MILLION SHARES WERE PRICED AT 25 EACH AND ARE NONCALLABLE FOR FIVE YEARS RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO USX CAPITAL LLC IS A UNIT OF USX CORP FEDERAL HOME LOAN MORTGAGE CORP 750 MILLION REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1710 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE MATURITY OF 348 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 630 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1709 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE MATURITY OF 352 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 5005 MILLION OF REMIC SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1712 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REMIC SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1705 IS BACKED BY THE AGENCY'S MULTIPLE REMIC TRANCHES FEDERAL HOME LOAN MORTGAGE CORP 1333 MILLION OF REMIC OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1707 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 675 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS MONEY STORE INC A 500 MILLION OF HOMEEQUITY LOAN SECURITIZATION OFFERED THROUGH PRUDENTIAL SECURITIES INC ACCORDING TO THE COMPANY MONEY STORE HOME EQUITY TRUST 1994A CONSISTS OF FIVE CLASSES OF SECURITIES BACKED BY ONE POOL OF 15YEAR AND 30YEAR FIXEDRATE HOMEEQUITY LOANS ORIGINATED BY THE MONEY STORE ALL CLASSES ARE RATED TRIPLEA BY S&P AND MOODY'S AND ARE BACKED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP THE 1544 MILLION CLASS A1 CERTIFICATES WITH A COUPON OF 4875 WERE PRICED AT 10025 TO YIELD ABOUT 449 A 55BASISPOINT SPREAD ABOVE THE ONEYEAR TREASURY BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF ONE YEAR THE 1305 MILLION CLASS A2 CERTIFICATES WITH A COUPON OF 525 WERE PRICED AT 100234375 TO YIELD ABOUT 51 A 69BASISPOINT SPREAD ABOVE THE TWOYEAR TREASURY BILL THE CERTIFCATES HAVE AN AVERAGE LIFE OF TWO YEARS THE 1033 MILLION CLASS A3 CERTIFICATES WITH A COUPON OF 5525 WERE PRICED AT 10021875 TO YIELD ABOUT 544 A 65BASISPOINT SPREAD ABOVE THE THREEYEAR TREASURY BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS THE 875 MILLION CLASS A4 CERTIFICATES WITH A COUPON OF 6275 WERE PRICED AT 10025 TO YIELD ABOUT 627 A 72BASISPOINT SPREAD ABOVE THE SEVENYEAR TREASURY BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF SEVEN YEARS THE 243 MILLION CLASS A5 CERTIFICATES WITH A COUPON OF 6725 WERE PRICED AT 100140625 TO YEILD ABOUT 677 A 90BASISPOINT SPREAD ABOVE THE 10YEAR TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF 12 YEARS ARGENTINA SOVEREIGN 350 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 6 1995 AT ISSUE PRICE 10005 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT PAR PAYABLE SEMIANNUALLY AT 100 BASIS POINTS OVER SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE CALLABLE AT PAR IN SEPTEMBER FEES 025 BANKAMERICA CORP US 750 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 10 1999 AT ISSUE AND REOFFER PRICE 99632 VIA KIDDER PEABODY SECURITIES CO PAYABLE QUARTERLY AT 0125 POINT OVER THREEMONTH DOLLAR LIBOR CALLABLE QUARTERLY AT PAR FROM MARCH 1996 FEES 02 HYDROELECTRICA ALICURA ARGENTINA 175 MILLION OF EUROBONDS DUE MARCH 15 1999 VIA BOOK RUNNER LEHMAN BROTHERS INTERNATIONAL THE BONDS ARE DUE TO BE PRICED NO LATER THAN CLOSE OF LONDON BUSINESS MONDAY TO YIELD A MARGIN OF 275 BASIS POINTS OVER THE WHENISSUED FIVEYEAR US TREASURY FEES 1125 INCLUDING 025 FOR MANAGEMENT AND UNDERWRITING COMBINED SALOMON INC US 200 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE MARCH 24 1999 AT ISSUE PRICE 10025 VIA CREDITO ITALIANO REOFFERED AT 9995 PAYABLE QUARTERLY AT 0375 POINT OVER THREEMONTH LIRE LIBOR FEES 05 SANAI OIL CO JAPAN 75 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 16 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 025 COUPON AT PAR VIA CREDIT SUISSE WARRANTS EXERCISABLE MARCH 23 TO MARCH 6 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS FIXED MARCH 3 FEES 1625 SANTANDER INTERNATIONAL LTD CAYMAN ISLANDS SPANISH PARENT 500 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 28 1997 AT ISSUE AND REOFFER PRICE 9983 VIA MORGAN STANLEY & CO INTERNATIONAL LTD AND BANCO SANTANDER DE NEGOCIOS PAYABLE QUARTERLY AT THREEMONTH LIBOR FLAT GUARANTOR BANCO SANTANDER SA FEES 0125 UNION BANK OF FINLAND LTD FINLAND 200 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 10 BASIS POINTS PUT OPTION EXERCISABLE SEMIANNUALLY FROM MARCH 1995 AT 9995 CALLABLE SEMIANNUALLY FROM MARCH 1997 AT PAR FEES UNDISCLOSED 9402250059 940225 BUSINESS BRIEF STATE AUTO FINANCIAL CORP WEATHERDAMAGE CLAIMS TO LOWER 1STPERIOD PROFIT STATE AUTO FINANCIAL CORP SAID THAT SEVERE WEATHER IN THE SOUTH AND MIDWEST HAS RESULTED IN A LARGE NUMBER OF DAMAGE CLAIMS THAT WILL ADVERSELY AFFECT FIRSTQUARTER EARNINGS THE COLUMBUS OHIO INSURANCE CONCERN SAID PRELIMINARY RESULTS INDICATE LOSSES FROM THE JANUARY AND FEBRUARY STORMS AT ABOUT 6 MILLION OR 51 CENTS A SHARE ON A PRETAX BASIS IN THE FIRST NINE MONTHS OF 1993 THE COMPANY REPORTED CATASTROPHE LOSSES OF 42 MILLION OR 35 CENTS A SHARE STATE AUTO WILL RELEASE ITS FOURTHQUARTER FIGURES IN EARLY MARCH IN THE 1993 FIRST QUARTER THE COMPANY REPORTED NET INCOME OF 26 MILLION OR 22 CENTS A SHARE 9402250058 940225 RTC SUGGESTS MRS CLINTON'S LAW FIRM IMPROPERLY FAILED TO DISCLOSE S&L LINK BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY SUGGESTED THAT THE ROSE LAW FIRM WHERE HILLARY RODHAM CLINTON AND SEVERAL ADMINISTRATION OFFICIALS WERE PARTNERS MAY HAVE IMPROPERLY FAILED TO DISCLOSE ITS DEALINGS WITH A FAILED ARKANSAS THRIFT THE RESOLUTION TRUST CORP'S CONTRACTOROVERSIGHT OFFICE LISTED SEVERAL INSTANCES WHEN THE FIRM DIDN'T DISCLOSE ITS PAST CONNECTIONS WITH MADISON GUARANTY SAVINGS & LOAN TO THE RTC AND TO THE FEDERAL DEPOSIT INSURANCE CORP THE FDIC TOOK OVER MADISON IN EARLY 1989 AND THE RTC INHERITED THE FAILED THRIFT WHEN THAT AGENCY WAS FORMED IN AUGUST 1989 THE FDIC AND THE RTC HIRED ROSE TO HANDLE MADISONRELATED AFFAIRS AFTER THE THRIFT FAILED THE RTC REPORT WAS DATED FEB 8 AND MADE PUBLIC AFTER SEN ALFONSE D'AMATO OF NEW YORK THE RANKING REPUBLICAN ON THE SENATE BANKING COMMITTEE COMMENTED ON IT DURING A HEARING ON THE RTC'S PERFORMANCE IN A SEPARATE REPORT LAST WEEK THE FDIC SAID IT HADN'T FOUND EVIDENCE THAT THE ROSE FIRM VIOLATED CONFLICTOFINTEREST RULES THAT WERE IN FORCE AT THE TIME TESTIFYING AT THE COMMITTEE HEARING YESTERDAY ACTING FDIC CHAIRMAN ANDREW HOVE SAID THE AGENCY'S RULES AT THE TIME COVERED ONLY ACTUAL CONFLICTS IF WE HAD DEALT WITH THE APPEARANCE OF CONFLICT IT IS LIKELY THAT THE CONCLUSION WOULD HAVE BEEN DIFFERENT HE SAID RTC DISCLOSURE RULES AS WELL AS THE CURRENT FDIC ONES ARE TOUGHER THAN THE OLD FDIC RULES THE CONTRACTOR OFFICE SAID THE REPORT WAS BEING GIVEN TO THE RTC'S GENERAL COUNSEL FOR ANY APPROPRIATE ACTION THE MATTER PROBABLY WILL BE HANDLED BY AN RTCFDIC LEGALCONFLICTS COMMITTEE THAT PANEL DECIDES WHETHER LAW FIRMS THAT DEAL WITH EITHER AGENCY SHOULD BE BARRED FROM FURTHER RTC OR FDIC WORK FOR VIOLATING THE AGENCIES' RULES SEN D'AMATO AND OTHER GOP SENATORS ON THE BANKING PANEL SEIZED ON YESTERDAY'S HEARING AS AN OPPORTUNITY TO RAISE QUESTIONS ABOUT THE INVOLVEMENT OF PRESIDENT AND MRS CLINTON OTHER ADMINISTRATION OFFICIALS AND THE ROSE FIRM IN THE SWIRLING CONTROVERSY OVER MADISON AND WHITEWATER DEVELOPMENT CORP A REALESTATE COMPANY THE CLINTONS INVESTED IN MR D'AMATO SAID THE RTC DID A BETTER JOB ON THE ROSE LAW FIRM ISSUE THAN THE FDIC DID IN ITS REPORT SEN LAUCH FAIRCLOTH R NC SAID THE FDIC REPORT SOUGHT TO EXONERATE THE ROSE FIRM FROM SERIOUS CONFLICTS INVOLVING MRS CLINTON AND WEBSTER HUBBELL WHO WAS A ROSE PARTNER HEADING AN FDIC CASE AGAINST FROST & CO MADISON'S FORMER ACCOUNTING FIRM MR HUBBELL CURRENTLY IS THE JUSTICE DEPARTMENT'S THIRDRANKING OFFICIAL SEN FAIRCLOTH CALLED THE FDIC REPORT AN EIGHTPAGE PLEA OF INSANITY AND SEN D'AMATO TERMED IT EIGHT PAGES OF SOPHOMORIC LEGALISTIC MUMBO JUMBO THAT DON'T HOLD WATER THE RTC REPORT SAID THAT ROSE DIDN'T DISCLOSE THAT IT PREVIOUSLY HAD REPRESENTED MADISON BEFORE THE ARKANSAS SECURITIES DEPARTMENT IN THE S&L'S ATTEMPT TO GAIN APPROVAL FOR ISSUING STOCK AND ACTING AS A BROKER THE REPORT ALSO SAID THAT ROSE DIDN'T DISCLOSE THAT IT HAD USED A FROST AUDIT OF MADISON'S CONDITION TO SUPPORT THE STOCKAUTHORIZATION REQUEST BEFORE THE SECURITIES AGENCY ROSE FILED A LAWSUIT ON BEHALF OF THE AGENCIES AGAINST FROST FOR A DEFECTIVE AUDIT THAT FAILED TO DETECT THAT MADISON WAS INSOLVENT THE RTC SAID ROSE ALSO DIDN'T REPORT THAT SETH WARD AND SETH WARD II MR HUBBELL'S FATHERINLAW AND BROTHERINLAW RESPECTIVELY HAD FILED SUITS AGAINST MADISON THE RTC SAID IT SAID THE FDIC LATER LEARNED OF THE MATTER BUT AN FDIC ATTORNEY DECIDED THERE WASN'T A CONFLICT SEN D'AMATO WASN'T FULLY SATISFIED WITH EVEN THE RTC REPORT HE SUCCESSFULLY PRESSED THE FDIC'S MR HOVE AND ROGER ALTMAN THE DEPUTY TREASURY SECRETARY AND ACTING RTC CHIEF EXECUTIVE TO AGREE TO HAVE THE TWO REGULATORY AGENCIES' INSPECTORS GENERAL REVIEW HOW THE AGENCIES HANDLED THE ROSE LAW FIRM ISSUE MR ALTMAN A LONGTIME FRIEND OF THE CLINTONS RESPONDED TO A BARRAGE OF GOP QUESTIONS ABOUT HOW HE TOLD THE RTC TO HANDLE THE MADISON CASE AND ANY CONTACTS HE HAS HAD WITH THE WHITE HOUSE ON THE MATTER HE SAID REPEATEDLY THAT HIS INSTRUCTIONS WERE TO FOLLOW EXACTLY IDENTICAL PROCEDURES TO THOSE USED IN ANY ENFORCEMENT CASE MR ALTMAN SAID HE INITIATED THE ONLY MEETING WITH WHITE HOUSE OFFICIALS EARLY THIS MONTH HE SAID HE ASKED FOR THE MEETING WITH WHITE HOUSE COUNSEL BERNARD W NUSSBAUM AND OTHERS AFTER GETTING QUERIES FROM MEMBERS OF CONGRESS ON HOW THE RTC WOULD HANDLE THE CASE HE SAID HE THOUGHT THE WHITE HOUSE OFFICIALS SHOULD BE TOLD THAT THE STATUTE OF LIMITATIONS ON SUING INDIVIDUALS INVOLVED IN THE MADISON FAILURE WAS TO RUN OUT ON FEB 28 AND THAT THE RTC WOULD EITHER SEEK TO EXTEND THE DEADLINE OR WOULD FILE ANY LAWSUITS BY THAT DATE CONGRESS HAS EXTENDED THE STATUTE FOR MADISON AND MANY OTHER THRIFTS UNTIL THE END OF 1995 9402250057 940225 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES SKATERS HOLD BREATH FAT LADY CLEARS THROAT BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL HAMAR AND SO IT COMES DOWN TO THE MAIN EVENT NANCY VS OKSANA BAIUL AND SURYA BONALY IN THE LONG PROGRAM FOR ALL THE MARBLES TONIGHT AT 7 AT THE OLYMPIC AMPHITHEATER HERE AND 1 PM NEW YORK TIME OR WHENEVER CBS DECIDES TO AIR IT STAY TUNED BE THERE OR BE SQUARE WAIT A MINUTE YOU MIGHT BE SAYING THIS WAS SUPPOSED TO BE NANCY VS TONYA WOMANO A WOMANO WHAT HAPPENED TO TONYA TONYA DIDN'T SKATE VERY WELL WEDNESDAY NIGHT IN THE SHORTSHOW PRELIM WORTH A THIRD OF THE FINAL SCORE THAT THE FIGURESKATING PEOPLE CHOOSE TO CALL THE TECHNICAL PROGRAM SHE STUMBLED COMING OUT OF THE FIRST PART OF HER OPENING COMBINATION JUMP TOOK AN EXTRA STEP BEFORE THE SECOND PART AND GENERALLY PERFORMED AS IF SHE HADN'T DONE ENOUGH STRETCHING EXERCISES BEFOREHAND SHE WOUND UP IN 10TH PLACE WELL BEHIND THE ABOVEMENTIONED TOP THREE AND UNLESS SOMETHING UNTHINKABLE HAPPENS TO SEVEN OF THE SKATERS ABOVE HER WELL NOT UNTHINKABLE ANYMORE SHE WILL BE RETURNING TO PORTLAND UNMEDALED AND FACING GRAVER QUESTIONS THAN THOSE SURROUNDING HER TRIPLE LUTZ THE COGNOSCENTI MEANING ANYONE WHO TOOK THE TROUBLE TO CHECK RECENT RESULTS IN THE SPORT PRETTY MUCH EXPECTED THAT OUTCOME NANCY WAS A BRONZE MEDALIST AT THE TWOYEARSAGO OLYMPICS THE UKRAINIAN BAIUL IS THE REIGNING WORLD'S CHAMPION AND THE FRENCHWOMAN BONALY WAS HER RUNNERUP YOU NEED CREDENTIALS TO GET MOST PLACES AROUND THESE OLYMPIC PRECINCTS BUT ESPECIALLY INTO THE UPPER REACHES OF THE FIGURESKATING STANDINGS EVENTS APLENTY REMAIN TO BE RUN AS THE LILLEHAMMER GAMES HEAD INTO THEIR HOMESTRETCH AND ALL WILL APPEAL MIGHTILY TO SOME FINNS SWEDES CANADIANS AND RUSSIANS HAVE HOCKEY TEAMS TO ROOT FOR ITALIANS WILL GET ANOTHER CHANCE TO SEE THEIR MAN ALBERTO TOMBA TRY TO OUTSLALOM THE WORLD BJORN DAHLIE AND VEGARD ULVANG THE SKIING NORSEMEN GO IN THE 50KILOMETER CROSSCOUNTRY FINALE SUNDAY THAT THEIR CROSSCOUNTRYMAD COUNTRYMEN HAVE BEEN AWAITING EAGERLY BUT FOR US AMERICANS WOMEN'S FIGURE SKATING PLAYS THE MAIN ROOM IN THE WINTER OLYMPICS THAT PHENOMENON PREDATES NANCYTONYA AND IT'S INTERESTING TO SPECULATE ABOUT THE CAUSE POTENTIAL MEDALS SURELY ARE ONE ASIDE FROM SHORTTRACK SPEED SKATING THE FIGS FIGURE TO PRESENT OUR LAST GOOD CHANCE FOR ONE OF THOSE AS IT HAS IN OTHER YEARS MAYBE TOO THE ACTIVITY'S CHARMING IMPRECISION IS AN ANTIDOTE TO TWO WEEKS OF EVENTS MEASURED TO THE MILLISECOND OR ONES REQUIRING SLICKER HARDWARE THAN YOU CAN GET AT SHARPER IMAGE MOSTLY THOUGH IT'S A GOOD SHOW SO GOOD IT'S EASY TO FORGET THAT REALLY THAT'S ALL IT IS WHERE ELSE IN SPORTS CAN YOU FIND COMELY COMPETITORS DRESSED LIKE ROBIN HOOD KATARINA WITT A SWAN MS BAIUL A FRENCH MAID NANCY A GERMAN PEASANT GIRL TANJA SZEWCZENKO AND MISS KITTY FROM THE LONGBRANCH SALOON TONYA THE WAY YOU DID WEDNESDAY IF THEY WERE MEN AND WEIGHED 150 POUNDS MORE THEY'D BE PROFESSIONAL WRESTLERS AND THEN THERE ARE THE JUDGES HERE TO DECIDE ALONG WITH THE REST OF US WHETHER THEY PREFER SLIM OR CHUNKY BLONDES OR BRUNETTES POWERFUL OR SMOOTH THEIR JOB IS EASY IF ONE TOP SKATER HITS HER PROGRAM AND ALL OF THE OTHERS FALTER BUT THAT CONDITION RARELY OBTAINS SO MATTERS OF TASTE INTRUDE IT USED TO REALLY GET ME WHEN A KID OF MINE GOT ROBBED BY THE JUDGES BUT EVENTUALLY I TOLD MYSELF THIS IS THE KIND OF SPORT IT IS AND I'D HAVE TO GET USED TO IT OR QUIT KATHY CASEY THE VETERAN COACH OF THE US MEN'S CHAMPION SCOTT DAVIS AND OTHERS WAS SAYING BEFORE THE GAMES BEGAN SHE WENT ON THE RULES SAY SOMEBODY HAS TO WIN SO THE JUDGES MUST CHOOSE AND IT CAN BE TOUGH I JUDGED A MEN'S PROFESSIONAL MEET ONCE AND THAT WAS ENOUGH FOR ME ONE FELLOW DID A CLOWN ROUTINE AND ANOTHER SKATED TO AVE MARIA' IT WAS COMPARING APPLES TO ORANGES BUT IN THE LONG RUN I THINK THE BIASES EVEN OUT AND THE RIGHT SKATER WINS I MEAN ABOUT 85 OF THE TIME THE RANGE OF CHOICE IN THE WOMEN'S FIELD WAS ESPECIALLY WIDE THIS TIME BECAUSE OF THE PRESENCE OF MS WITT THE OLYMPIC CHAMP OF 1984 AND '88 SHE TURNED PRO BY DEFINITION OF THE INTERNATIONAL SKATING UNION AFTER THAT BUT ALONG WITH MEN'S SIDE EXOLYMPIC OR WORLD CHAMPS BRIAN BOITANO KURT BROWNING AND VIKTOR PETRENKO TOOK ADVANTAGE OF A RULE CHANGE TO RETURN NONE OF THOSE THREE MEN MEDALED AND LIKE THEM MS WITT LEARNED WEDNESDAY THAT IT'S MORE DIFFICULT TO PLEASE OLYMPIC JUDGES THAN AN ICE SHOW AUDIENCE IN OMAHA TO THESE EYES AND TO THOSE OF MOST OF THE 6000 NONJUDGE SPECTATORS HER SHORTPROGRAM ROUTINE LOOKED PERFECTLY FINE BUT ALL IT GOT HER WAS SIXTH PLACE THE GAMES SEEM TO BE TELLING THE PROS THAT WHILE THEIR NAMES LOOK GOOD ON THE MARQUEE THEY SHOULD LOOK TO THEIR PAYCHECKS FOR GOLD THAT LEAVES US WITH THE TOP TRIO AND MAYBE FOURTHPLACER LU CHEN OF CHINA FOR THE TOP SPOT AND THAT MIGHT INVOLVE SOME CHOICES NANCY MS CHEN AND THE WAIFLIKE TEENAGED MS BAIUL FALL INTO THE LYRICAL CATEGORY THAT THE JUDGES TRADITIONALLY FAVOR MS BONALY BORN IN REUNION ISLAND IS THE SPORT'S PREMIER LEAPER ONE WHO IS CAPABLE OF DOING TRICKS THE SPORT'S OVERSEERS DON'T PERMIT NANCY WON THE TECHNICAL COMPETITION BECAUSE SHE HIT HER PROGRAM WHILE THE OTHERS FAILED HOWEVER SLIGHTLY A REPEAT OF THAT WOULD COMPLETE HER TRANSFORMATION FROM VICTIM TO VICTOR WEIRDLY MS BAIUL SUFFERED A LEG INJURY DURING PRACTICE WHEN SHE AND MS SZEWCZENKO COLLIDED MS BAIUL RECEIVED THREE STITCHES BUT IS EXPECTED TO SKATE TONIGHT THE CONSENSUS AMONG THE KNOWLEDGEABLE HERE THOUGH IS THIS IF MS BAIUL AND MS KERRIGAN SKATE EQUALLY WELL MS BAIUL WILL WIN BECAUSE SHE'S THE BETTER ACTRESS FOR MS BONALY TO WIN THOSE TWO WOULD HAVE TO MESS UP WHILE SHE COMPLETES ALL SEVEN OR EIGHT OF HER TRIPLE JUMPS ASSUMING OF COURSE SHE COMES DOWN 9402250056 940225 BUSINESS BRIEF PENNSYLVANIA POWER & LIGHT CO A 50 MILLION INVESTMENT PLANNED FOR NEW SUBSIDIARY PENNSYLVANIA POWER & LIGHT CO SAID IT PLANS TO INVEST 50 MILLION IN A NEW SUBSIDIARY POWER MARKETS DEVELOPMENT CO THAT WILL INVEST IN AND DEVELOP WORLDWIDE ELECTRIC POWER PROJECTS WILLIAM F HECHT CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID THE ALLENTOWN PA UTILITY ALSO IS ALSO PLANNING TO FORM A HOLDING COMPANY THAT WOULD BE THE PARENT OF THE PRESENT COMPANY AND EVENTUALLY OF THE NEW UNIT NEW RULES IN THE ELECTRIC BUSINESS OPEN THE DOOR TO MANY NEW OPPORTUNITIES MOST OF WHICH ARE OUTSIDE THE TRADITIONAL REGULATED BUSINESS MR HECHT NOTED THE 50 MILLION INVESTMENT WILL COME FROM COMPANY PROFIT NOT FROM RATEPAYERS THE HOLDING COMPANY STRUCTURE WHICH REQUIRES REGULATORY APPROVAL IS EXPECTED TO BE SUBMITTED TO SHAREHOLDERS AT THE 1995 ANNUAL MEETING PP&L SUPPLIES ELECTRICITY TO A 10000SQUAREMILE AREA OF 29 COUNTIES IN CENTRAL EASTERN PENNSYLVANIA 9402250055 940225 LOCKHEED SETTLEMENT OF 27 MILLION ENDS NL INDUSTRIES DISPUTE HOUSTON NL INDUSTRIES INC SAID IT REACHED A SETTLEMENT IN LITIGATION AGAINST LOCKHEED CORP AND LOCKHEED'S DIRECTORS IN WHICH LOCKHEED PAID THE CHEMICAL PRODUCER 27 MILLION THE LITIGATION GREW OUT OF A BATTLE BY DALLAS INVESTOR HAROLD SIMMONS WHO CONTROLS NL INDUSTRIES TO ACQUIRE THE CALABASAS CALIFBASED DEFENSE CONTRACTOR AT ISSUE WAS A 500 MILLION LOCKHEED EMPLOYEE STOCKOWNERSHIP PLAN WHICH BECAME INSTRUMENTAL IN A PROXY FIGHT WITH NL INDUSTRIES NL INDUSTRIES CONTENDED THE STOCK PLAN WHICH AT THE TIME CONTROLLED 17 OF THE COMPANY UNFAIRLY ALLOWED EMPLOYEES TO VOTE SHARES WELL BEFORE THE SHARES WERE ALLOTED TO THEIR ACCOUNTS OR PAID FOR IN DECEMBER 1992 A FEDERAL JURY IN LOS ANGELES FOUND THAT CERTAIN OF LOCKHEED'S PUBLIC DISCLOSURES DURING THE PROXY BATTLE VIOLATED FEDERAL SECURITIES LAWS AND ORDERED LOCKHEED TO PAY NL INDUSTRIES 30 MILLION PRIOR TO THAT A FEDERAL JUDGE THREW OUT PORTIONS OF MR SIMMONS'S CLAIMS ALLEGING LOCKHEED DIRECTORS BREACHED FIDUCIARY DUTIES AS A RESULT BOTH PARTIES FILED APPEALS WITH THE US COURT OF APPEALS IN SAN FRANCISCO THE SETTLEMENT EFFECTIVELY ENDS THOSE APPEALS AN NL INDUSTRIES SPOKESMAN SAID IN A STATEMENT MR SIMMONS SAID HE IS SATISFIED WITH THE RESOLUTION A LOCKHEED SPOKESMAN SAID THE COMPANY BELIEVES THE VERDICT FINDING THE COMPANY LIABLE WAS IN ERROR BUT HE ADDED THAT IT WAS IN LOCKHEED'S BEST INTEREST TO SETTLE THE DISPUTE FOR THE SMALLER AMOUNT HE SAID THE PAYMENT WOULDN'T MATERIALLY AFFECT LOCKHEED'S FINANCIAL STATUS 9402250054 940225 COMMODITIES US PETROLEUM FUTURES PRICES INCREASE SHARPLY ON SEVERAL FACTORS SPURRING RALLY WORLDWIDE BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL US PETROLEUM FUTURES PRICES ROSE SHARPLY TO LEAD OIL PRICES HIGHER WORLDWIDE ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR APRIL DELIVERY ROSE 36 CENTS A BARREL TO SETTLE AT 1477 SOME FUELS FUTURES JUMPED MORE THAN ONE CENT A GALLON THERE WAS A SIMILAR RALLY IN LATE TRADING ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE THE APRIL BRENT BLEND CRUDE CLOSED UP 28 CENTS A BARREL AT 1361 THE RISE IN FUTURES PRICES IN THE US WAS BEHIND THE MOVE HIGHER IN LONDON ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT BRENT CRUDE AND GASOIL HEATING OIL FUTURES WERE LOWER AHEAD OF THE OPEN IN NEW YORK AND MOVED UP AS THE MARKET THERE STRENGTHENED THE REPORT SAID REASONS CITED FOR THE BUOYANCY IN US FUTURES TRADING VARIED AMONG ANALYSTS AND TRADERS BUT PROMINENTLY MENTIONED WAS THE SOCALLED TECHNICAL BUYING THAT RESULTED IN BOTH NEW YORK AND LONDON AFTER PRICES BROKE THROUGH PSYCHOLOGICALLYIMPORTANT LEVELS OTHERS SUGGESTED OIL PRICES GENERALLY ROSE BECAUSE OF FIRMNESS IN THE HEATING OIL MARKET WHICH STRENGTHENED AGAIN AFTER THE NEW BOUT OF FRIGID WEATHER IN THE US THIS WEEK THE MARCH HEATING OIL CONTRACT ON THE NEW YORK MERCANTILE EXCHANGE ACCOUNTED FOR THE BIGGEST PRICE JUMP RISING 164 CENTS TO 4886 CENTS A GALLON BUT GASOLINE FUTURES ALSO SETTLED SHARPLY HIGHER WITH THE MARCH CONTRACT UP 135 CENTS TO SETTLE AT 4467 CENTS A GALLON STILL AS REPORTED IN THIS NEWSPAPER WEDNESDAY THE HARSH US WINTER IS SHRINKING WORLD OIL INVENTORIES AND HELPING TO END THE OIL GLUT AT LEAST TEMPORARILY THE FUNDAMENTALS ARE BEGINNING TO LOOK MORE CONSTRUCTIVE SAID SHAHROKH NIKKHAH EXECUTIVE VICE PRESIDENT OF REFCO INC BUT THERE IS STILL A VERY NEGATIVE POLITICAL CLIMATE IN OPEC OTHERS ALSO EXPRESSED DOUBT THAT THE FRACTIOUS ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL BE ABLE TO AGREE TO CUT PRODUCTION BY ENOUGH IN THE SPRING WHEN DEMAND WEAKENS SEASONALLY TO FIRM UP WEAK OIL MARKETS WE ARE HEARING A LOT OF STATEMENTS FROM THE OIL MINISTERS ABOUT THE SECOND QUARTER BUT IT'S JUST BULLISH RHETORIC SAID THOMAS BLAKESLEE AN OIL ANALYST WITH CAMERON HANOVER INC I'M STILL BEARISH HE SAID IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS CATTLE FUTURES PRICES SURGED ON INDICATIONS OF GROWING DEMAND FOR RED MEAT AT THE CHICAGO MERCANTILE EXCHANGE CATTLE FOR APRIL DELIVERY WAS UP 80 CENT TO 7637 CENTS A POUND THE MARKET WAS RESPONDING TO NEWS THAT ON WEDNESDAY 360 BOXCARS OF BOXED BEEF WERE SOLD ON THE WHOLESALE MARKET SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS IT WAS THE BEST SINGLEDAY MOVEMENT OF BEEF ON THE WHOLESALE MARKET SINCE SEPTEMBER THAT TELLS US RETAILERS ARE FINALLY DOING SOME BUYING MR VAUGHT SAID DESPITE THE FACT THAT FEBRUARY IS TRADITIONALLY A TIME OF SLUGGISH WHOLESALE DEMAND FOR BEEF THE MERC'S FUTURES MARKET HAS ALSO RECEIVED SUPPORT FROM STRENGTH ON THE CASH MARKET FOR BEEF WHICH HAS SEEN PRICES RISE TO 745 CENTS A POUND FROM 715 CENTS A POUND LAST WEEK GRAINS AND SOYBEANS RISING DOMESTIC USE OF SOYBEAN BYPRODUCTS HELPED TO PUSH SOYBEAN FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR MAY DELIVERY WERE UP 125 CENTS TO 68925 A BUSHEL SOYBEANS ARE CRUSHED TO PRODUCE THE BYPRODUCTS OF SOYBEAN MEAL AND SOYBEAN OIL EARLY YESTERDAY A MONTHLY CRUSH REPORT FOR JANUARY SHOWED DOMESTIC USE OF SOYBEAN MEAL TO BE AT ITS HIGHEST LEVELS EVER WHILE DOMESTIC USE OF SOYBEAN OIL POSTED ITS SECONDSTRONGEST MONTHLY TOTAL SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO MEANWHILE ADDING SUPPORT TO THE MARKET WAS A REPORT THAT CHINA UNEXPECTEDLY BOUGHT 60000 TONS OF US SOYBEANS 9402250052 940225 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDIA EXPECTS TO POST A 38 GROWTH RATE FOR THE FISCAL YEAR ENDING MARCH 31 FAR SMALLER THAN THE PROJECTED 56 EXPANSION AND DOWN FROM 4 THE PREVIOUS YEAR THE GOVERNMENT SAID IN ITS ANNUAL REPORT BUT OFFICIALS VOWED TO CONTINUE THEIR AMBITIOUS FREEMARKET PROGRAM WHICH IS ATTRACTING RECORD FOREIGN INVESTMENT INDUSTRIAL STAGNATION AND EFFECTS OF POLITICAL DISTURBANCES IN LATE 1992 AND EARLY 1993 WERE BLAMED FOR BRAKING GROWTH THE AGRICULTURAL SECTOR ON WHICH MORE THAN TWOTHIRDS OF INDIA'S 880 MILLION PEOPLE DEPEND GREW JUST 23 AND MANUFACTURING EXPANDED 25 THE GOVERNMENT FELL SHORT OF ITS TARGET OF SLASHING THE BUDGET DEFICIT TO 47 OF GROSS DOMESTIC PRODUCT BUT DIDN'T SPECIFY A NUMBER DESPITE THE DISAPPOINTING PERFORMANCE INDIA'S ECONOMY STILL IS GROWING THREE TIMES FASTER THAN TWO YEARS AGO THE FRENCH GOVERNMENT DUMPED PLANS FOR AN INTERNATIONAL CONFERENCE CENTER IN PARIS SAYING IT COULDN'T AFFORD TO BUILD IT ABOUT 50 MILLION HAS BEEN SPENT ON THE 509 MILLION PROJECT BY THE SEINE RIVER NEAR THE EIFFEL TOWER THE CENTER WAS THE LAST OF PRESIDENT FRANCOIS MITTERRAND'S SOCALLED GREAT WORKS WHICH INCLUDED A LOUVRE MUSEUM WING AND AN OPERA HOUSE THE GOVERNMENT WILL STUDY AN ESTIMATED 84 MILLION EXPANSION OF A CONFERENCE CENTER NEAR THE ARC DE TRIOMPHE ABOUT 170000 WESTERN GERMAN METAL WORKERS STAGED ANOTHER IN A SERIES OF WARNING STRIKES AT AUTO AND RELATED INDUSTRIES IN DOZENS OF CITIES THE IG METALL UNION'S 32 MILLION MEMBERS ARE SEEKING A SHOWDOWN OVER INDUSTRY'S ABILITY TO BOOST WAGES AND MAINTAIN GENEROUS BENEFITS WHILE TRYING TO CLIMB OUT OF RECESSION EMPLOYERS SAY WORKERS' DEMANDS ARE DRIVING COSTS UP AND FORCING PRODUCTION OUT OF GERMANY THE BRIEF WALKOUTS BEGAN AFTER CONTRACT TALKS BROKE OFF LAST MONTH RUSSIA HAS SUFFICIENT GRAIN STORED AND WON'T NEED IMPORTS THIS YEAR MOREOVER THE GOVERNMENT COULD SELL AS MUCH AS FOUR MILLION TONS OF GRAIN TO OTHER FORMER SOVIET REPUBLICS LAST YEAR RUSSIA IMPORTED 10 MILLION METRIC TONS OF GRAIN TO SUPPLEMENT DOMESTIC OUTPUT OF 100 MILLION TONS BECAUSE OF THIS YEAR'S SURPLUS RUSSIA WILL LIFT EXPORT DUTIES ON GRAIN SPECIALISTS FROM THE EUROPEAN UNION WILL TEACH EASTERN EUROPEANS HOW TO RUN MODERN TELECOMMUNICATIONS WESTERN TRAINERS AIM TO SHOW TELECOM WORKERS IN 10 COUNTRIES HOW TO BRING THE INDUSTRIALIZED WORLD'S WORST PHONE SYSTEMS UP TO EU STANDARDS UNDER THE 63 MILLION TECHNICALAID INITIATIVE THE TRAINERS WILL BEGIN THE FIRST OF THE LESSONS ON REGULATION AND MANAGEMENT THIS WEEK IN HUNGARY NEGOTIATIONS ON ENLARGING THE EUROPEAN UNION RESUME TODAY AMID CONCERN ABOUT SLIM CHANCES FOR A MEMBERSHIP ACCORD WITH NORWAY EU DIPLOMATS WERE OPTIMISTIC ABOUT AN AGREEMENT WITH FINLAND AND SWEDEN ON THEIR ENTRY INTO THE 12COUNTRY BLOC BY NEXT TUESDAY'S DEADLINE AUSTRIA'S APPLICATION HINGES ON RESOLVING THE STICKY ISSUE OF EU TRUCK TRANSIT ON WHICH A COMPROMISE WAS EXPECTED BUT IN NORWAY'S CASE THE ISSUE OF FISHING RIGHTS COULD SINK NEGOTIATIONS THE PROBLEM IS SO POLITICALLY SENSITIVE THAT THE EU HAS BEEN UNABLE TO RESOLVE ITS OWN DISAGREEMENTS EU AMBASSADORS MET INTO THE NIGHT YESTERDAY IN SEARCH OF A NEGOTIATING STANCE WITH FOREIGN MINISTERS TO CONSIDER THE MATTER TODAY THE FOREIGN MINISTERS WILL MEET THEIR COUNTERPARTS FROM THE FOUR CANDIDATE COUNTRIES TOMORROW AND TALKS COULD RUN NONSTOP UNTIL THE TUESDAY DEADLINE FOR SUBMITTING PACTS TO THE EUROPEAN PARLIAMENT AUSTRIA FINLAND NORWAY AND SWEDEN WANT TO JOIN THE EU NEXT JAN 1 AND THEY FACE LENGTHY RATIFICATION PROCEDURES THE US STATE DEPARTMENT ISSUED A WARNING CAUTIONING AMERICAN CITIZENS AGAINST TRAVELING TO RWANDA BECAUSE OF ETHNIC FIGHTING AND TURMOIL IN THE CENTRAL AFRICAN STATE THE CZECH POSTAL AGENCY IS INVESTIGATING HOW CLERKS POSTMARKED SOME LETTERS WITHOUT NOTICING THEY BORE FAKE STAMPS SHOWING NAKED MEN 9402250051 940225 TECHNOLOGY & HEALTH COMPAQ PLANS SHIFT OF SINGAPORE LINES TO HOUSTON PLANT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP CITING SURGING DEMAND AND LOWERED TRADE BARRIERS IS SHIFTING SOME COMPUTER PRODUCTION TO THE US FROM SINGAPORE IN A 20 MILLION EXPANSION THE MOVE WHICH WILL ADD SEVEN MANUFACTURING LINES TO THE COMPANY'S HOUSTON PLANT COMES AMID BOTH A SUPPLY SHORTAGE IN THE REDHOT PERSONAL COMPUTER MARKET AND A BROADER SHOW OF STRENGTH AMONG US MANUFACTURERS COMPAQ SHARES JUMPED 35 YESTERDAY TO A NEW 52WEEK HIGH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON MORE THAN TRIPLE USUAL VOLUME ECONOMISTS SAY US LABOR COSTS NOW AT A 15YEAR LOW COMPARED WITH INTERNATIONAL COMPETITORS HAVE COMBINED WITH A LOWER DOLLAR TO PRODUCE A RESURGENCE IN THE DOMESTIC MANUFACTURING BASE USBASED PRODUCERS ARE MORE COMPETITIVE TODAY THAN THEY'VE BEEN SINCE THE 1960S SAID STEPHEN ROACH CHIEF ECONOMIST AT MORGAN STANLEY & CO NEW YORK MR ROACH AND OTHERS CITE RECENT DECISIONS BY GERMANY'S DAIMLERBENZ AG AND BAYERISCHE MOTOREN WERKE AG TO BUILD CARS IN THE US AS SIGNS OF THE MANUFACTURING TURNAROUND EVEN MORE IMPORTANT THEY SAY IS THE RETURN OF DOMESTIC MANUFACTURING AMONG TECHNOLOGY COMPANIES SUCH AS COMPAQ AST RESEARCH INC AND APPLE COMPUTER INC IT WAS AFTER ALL THE OVERSEAS MOVES OF HIGHGROWTH HIGHTECH COMPANIES IN THE 1980S THAT COST THOUSANDS OF US JOBS AND PROMPTED HANDWRINGING THROUGHOUT THE COUNTRY ABOUT THE ABILITY OF DOMESTIC COMPANIES TO COMPETE A VERY GOOD CASE CAN BE MADE THAT US COMPETITIVE ABILITY HAS IMPROVED SAID RICHARD D RIPPE CHIEF ECONOMIST AT PRUDENTIAL SECURITIES FOR COMPAQ THE LATEST EXPANSION EFFORT MARKS THE FIRST TIME IN MORE THAN TWO YEARS THAT THE HOUSTON COMPANY HAS MADE PORTABLE COMPUTERS IN THE US IN LATE 1991 COMPAQ MOVED ALL NOTEBOOKCOMPUTER PRODUCTION TO SINGAPORE AFTER THE US GOVERNMENT IMPOSED STIFF TARIFFS ON FLATPANEL DISPLAYS ALL OF WHICH ARE MADE IN JAPAN LAST YEAR AMONG WHAT WERE THEN WARMER RELATIONS BETWEEN THE US AND JAPAN THE TARIFF WAS LIFTED EASING THE COMPANY'S MANUFACTURING MOVE BACK TO THE US HOWEVER COMPAQ OFFICIALS SAY THEIR DECISION ULTIMATELY WAS MADE BY SHARP PRODUCTIVITY IMPROVEMENTS AND COST REDUCTIONS AT THE HOUSTON PLANT GREG PETSCH THE COMPANY'S SENIOR VICE PRESIDENT OF CORPORATE OPERATIONS SAID COMPAQ HAS CUT THE SIZE OF ITS MANUFACTURING SUPPORT STAFF BY 40 SINCE 1991 THOSE LOWER COSTS ALONG WITH SHARPLY HIGHER PRODUCTION VOLUMES HAVE ENABLED THE COMPANY TO DOUBLE ITS PRODUCTION PER SQUARE FOOT IN THE PAST TWO YEARS HE SAID THE COMPAQ EXPANSION TO BE COMPLETED BY JUNE WILL INCREASE TO 24 THE NUMBER OF DESKTOPPC AND PORTABLEPC MANUFACTURING LINES IN HOUSTON THE COMPANY SAID ITS SINGAPORE PLANT WILL CONTINUE AT FULL CAPACITY THOUGH WITH A DIFFERENT MIX OF BOTH DESKTOP AND NOTEBOOK PRODUCTS COMPAQ MEANWHILE IS PROCEEDING WITH SEPARATE PLANS TO BROADEN ITS MANUFACTURING OPERATIONS IN SCOTLAND AND LAST YEAR IT OPENED A PLANT IN SHENZHEN CHINA INVESTORS PERCEIVING THAT COMPAQ'S EXPANSION PLANS MEAN THE COMPANY WILL CONTINUE TO SEE SURGING PC SALES SENT COMPAQ'S STOCK UP 3375 A SHARE TO CLOSE AT 10050 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMPAQ SAID THE EXPANSION WOULDN'T RESULT IN CHARGES AGAINST EARNINGS AND IT DECLINED TO SAY HOW MANY JOBS WOULD BE CREATED THE COMPANY ALONG WITH ALL ITS PEERS IN THE PC BUSINESS HAS BEEN SCRAMBLING IN RECENT MONTHS TO KEEP PACE WITH RECORD DEMAND MR PETSCH THE SENIOR VICE PRESIDENT SAID THE COMPANY REMAINS BACKLOGGED ON MANY PRODUCTS EVEN THOUGH COMPAQ'S PLANTS HAVE BEEN RUNNING AT FULL CAPACITY THIS IS SOMETHING THAT'S AFFECTING EVERYBODY SAID DAVID GOLDSTEIN PRESIDENT OF CHANNEL MARKETING CORP A DALLAS CONSULTING COMPANY THAT SPECIALIZES IN COMPUTER DISTRIBUTION DEMAND HAS BEEN OUTSTRIPPING SUPPLY ALL THE WAY AROUND 9402250050 940225 BUSINESS BRIEF TECK CORP COMPANY TO INCREASE STAKES IN COMINCO AND MIM MINE TECK CORP SAID IT AGREED TO PURCHASE ABOUT 11 MILLION SHARES OF COMINCO LTD AND A STAKE IN A ZINC MINE FROM A SUBSIDIARY OF MIM HOLDINGS LTD FOR A TOTAL OF 209 MILLION CANADIAN DOLLARS US155 MILLION THE ACQUISITION WILL RAISE TECK'S STAKE IN COMINCO A VANCOUVER BRITISH COLUMBIA BASEMETALS PRODUCER TO 36 FROM 22 TECK A VANCOUVER GOLD AND BASEMETALS CONCERN SAID IT WILL ALSO DOUBLE ITS INTEREST IN THE POLARIS ZINC MINE IN THE CANADIAN ARCTIC TO 225 MIM WILL CONTINUE TO HOLD 69 MILLION COMINCO SHARES OR ABOUT 86 OF THE SHARES OUTSTANDING MIM AN AUSTRALIAN MINING CONCERN HAS RECENTLY BEEN SELLING ASSETS TO RAISE CASH LAST MONTH IT SAID IT PLANNED TO SELL A MINORITY STAKE IN GRANGES INC A TORONTO MINING CONCERN FOR ABOUT C508 MILLION 9402250049 940225 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP NET IN 4TH PERIOD ROSE 11 AS REVENUE INCREASED 10 AMERICAN INTERNATIONAL GROUP SAID ITS FOURTHQUARTER NET INCOME ROSE 11 THE RESULTS IN LINE WITH ANALYSTS' EXPECTATIONS PUSHED THE BIG NEW YORK INSURANCE COMPANY'S PROFIT TO A RECORD FOR ANY QUARTER OF 5102 MILLION OR 161 A SHARE COMPARED WITH 4589 MILLION OR 144 A SHARE DURING THE SAME PERIOD OF 1992 REVENUE ROSE 10 TO 536 BILLION FROM 486 BILLION ALL THREE OF AIG'S MAJOR BUSINESSES PROPERTY AND CASUALTY LIFE INSURANCE AND FINANCIAL SERVICES REPORTED HIGHER LEVELS OF OPERATING PROFIT WHICH EXCLUDES CAPITAL GAINS IN COMMENTS TO STOCK ANALYSTS AIG SAID THAT IT EXPECTS TO LOSE 50 MILLION PRETAX ON THE LOS ANGELES EARTHQUAKE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AIG CLOSED AT 87375 DOWN 125 9402250048 940225 MARKETING & MEDIA ADVERTISING EAGER TO CASH IN ON OLYMPIC FEVER ADVERTISERS SNARE STAR ATHLETES BY KEVIN GOLDMAN ALTHOUGH THE OLYMPIC FLAME WON'T BE EXTINGUISHED UNTIL SATURDAY ALREADY THE CALL ALONG MADISON AVENUE IS LET THE NEGOTIATIONS BEGIN IN FACT AMERICAN TELEPHONE & TELEGRAPH JUST SNARED FOLK HERO AND GOLD MEDAL SPEED SKATER DAN JANSEN TO STAR IN A SERIES OF COMMERCIALS INDUSTRY EXECUTIVES SAY THE ADVERTISEMENTS ALSO ARE EXPECTED TO FEATURE MR JANSEN'S PASSIONATELY SUPPORTIVE WIFE ROBIN WHILE DETAILS OF THE CAMPAIGN COULDN'T BE DETERMINED MR JANSEN IS EXPECTED TO BE AN INTEGRAL PART OF AT&T'S AD CAMPAIGN LEADING UP TO THE 1996 SUMMER OLYMPICS IN ATLANTA MR JANSEN'S REPRESENTATIVE FRED FRIED EXECUTIVE VICE PRESIDENT OF INTEGRATED SPORTS INTERNATIONAL IN EAST RUTHERFORD NJ DECLINED TO CONFIRM THE AT&T DEAL MR FRIED WOULD SAY ONLY THAT HE IS CLOSE TO FINALIZING A DEAL INVOLVING MR JANSEN AND ONE OF THE BEST CORPORATIONS IN AMERICA AN AT&T SPOKESMAN DECLINED COMMENT THE PHONE IS JUST STARTING TO RING FOR MR JANSEN AND OTHER WINNERS ON THE US OLYMPIC TEAMS CLEARLY THE HOHUM RECEPTION FROM ADVERTISERS FOR THE 1992 WINTER OLYMPICS' ATHLETES WON'T BE REPEATED SPORTS MARKETING EXPERTS BELIEVE THAT FOUR OLYMPIC ATHLETES IN ADDITION TO THE PHOTOGENIC MR JANSEN WILL BECOME ENDORSEMENT STARS ONCE THEY TREK HOME FROM LILLEHAMMER NORWAY THEY ARE NANCY KERRIGAN WHO IS LEADING IN THE WOMEN'S FIGURE SKATING COMPETITION BONNIE BLAIR WHO SET A WOMEN'S RECORD FOR OLYMPIC GOLD MEDALS AND US ALPINE SKIING MEDAL WINNERS TOMMY MOE AND PICABO STREET THESE ATHLETES SHARE AN ASSET THAT MAKES THEM ESPECIALLY ATTRACTIVE TO CONSUMERS AND THEREFORE TO ADVERTISERS EACH COMES WITH AN ENGAGING STORY TO GO ALONG WITH THE MEDALS AND EACH IS ENORMOUSLY PERSONABLE WHAT'S MORE THE ATHLETES ARE HIGHLY RECOGNIZABLE A BIG PLUS TO ADVERTISERS AFTER ALL THE GAMES ARE ENJOYING RECORDSETTING AUDIENCES ON WEDNESDAY FOR INSTANCE THE THREE HOURS OF COVERAGE WHICH FEATURED MS KERRIGAN AND TONYA HARDING COMPETING ON THE ICE WAS WATCHED BY 485 OF US HOMES WITH TELEVISION SETS MAKING IT ONE OF THE MOSTWATCHED BROADCASTS ON TELEVISION EVER EVERY VIEWER IS A POTENTIAL CUSTOMER AND THE HIGH RATINGS CAN ONLY WHET THE APPETITE OF ADVERTISERS SAYS NOVA LANKTREE PRESIDENT OF LANKTREE SPORTS CELEBRITY NETWORK IN CHICAGO WHICH MATCHES SPORTS CELEBRITIES WITH COMMERCIALS AND SPEAKING ENGAGEMENTS EACH ATHLETE IN HIS OR HER INDIVIDUAL WAY EMBODIES THE OLYMPIC SPIRIT SAYS MARTY BLACKMAN OF BLACKMAN & RABER LTD IN NEW YORK WHICH CONSULTS WITH AD AGENCIES ON THE USE OF CELEBRITIES FOR INSTANCE MR JANSEN'S TALE OF OVERCOMING PERSONAL AND PROFESSIONAL ADVERSITY HIS SISTER DIED BEFORE HE SKATED IN THE 1992 WINTER OLYMPICS AND A MEDAL ELUDED HIM IS INSPIRATIONAL SAYS MR BLACKMAN MS KERRIGAN IS COMPETING MONTHS AFTER SHE WAS CLUBBED IN THE KNEE ALLEGEDLY BY INDIVIDUALS CLOSE TO MS HARDING SHE ALSO HAS A MOTHER WHO IS LEGALLY BLIND AFTER A BRIEF WILD STREAK IN ADOLESCENCE MR MOE WAS SENT TO ALASKA WHERE HIS FATHER PUT HIM ON THE RIGHT TRACK MS BLAIR THE CHIPPER RECORDBREAKING ATHLETE HAS HER FAMILY SUPPORT TEAM CALLED THE BLAIR BUNCH AND MS STREET IS THE OFFSPRING OF SELFDESCRIBED 1960S HIPPIES WHO DIDN'T EVEN NAME HER UNTIL CROSSING THE BORDER BETWEEN THE US AND MEXICO PRESENTED PROBLEMS MS BLAIR'S AGENT PARKES BRITTAIN OF ADVANTAGE INTERNATIONAL SAID FROM LILLEHAMMER YESTERDAY THAT SHE IS BEING BOMBARDED WITH OFFERS MR BRITTAIN SAYS MS BLAIR WILL BE ON A NATIONAL TELEVISION COMMERCIAL FOR A SERVICES COMPANY BUT DECLINED TO BE SPECIFIC KELLOGG SAID EARLIER THIS WEEK THAT THE CEREAL COMPANY WILL FEATURE HER PICTURE ON LIMITED EDITION BOXES OF CORN FLAKES WHAT YOU SEE WITH THIS GROUP IS WHAT YOU GET SAYS MS LANKTREE THERE IS LITTLE RISK FOR ADVERTISERS WHO MIGHT FEAR EMBARRASSMENT FROM CELEBRITY ENDORSEMENTS MARKETERS SAY EACH CELEBRITY HAS CLOSE FAMILY TIES AND PERHAPS SIBLINGS OR PARENTS WILL CROP UP IN ADS I COULD SEE COMMERCIALS FOR MOE AND HIS DAD SAYS STEPHEN L DISSON MANAGING DIRECTOR OF D&F CONSULTING A WASHINGTON SPORTS MARKETING CONSULTING FIRM MR JANSEN WAS ICE COLD FOR ENDORSEMENTS AFTER THE 1992 OLYMPICS PRESUMABLY BECAUSE HE FAILED TO WIN MEDALS THAT'S ALL CHANGED OF COURSE WITH THE SKATER'S RECORDBREAKING PERFORMANCE IN THE 1000METER RACE WE LOVE THE EXPOSURE WE'RE GETTING SAYS MR FRIED WHO ADDS THAT MR JANSEN WON'T BECOME OVEREXPOSED THERE WILL BE SEVERAL DEALS NOT MANY HE SAYS MR JANSEN HE ADDS HAS LEGS NO PUN INTENDED HE SPENT 10 YEARS BUILDING UP TO THIS MOMENT HE CAN CARRY A COMPANY'S MESSAGE OF OLYMPIC COMMITMENT MS KERRIGAN MARKETING EXPERTS SAY DOESN'T EVEN HAVE TO WIN A GOLD MEDAL THIS AFTERNOON SHE ALREADY HAS ENDORSEMENT DEALS WITH CAMPBELL SOUP SHOWING HER ELBOWING A BEEFY HOCKEY PLAYER SEIKO AND XEROX AMONG OTHERS SHE HAS CARRIED HERSELF BEAUTIFULLY SAYS DAVID BURNS OF BURNS SPORTS CELEBRITY SERVICE IN CHICAGO SHE HAS CHARM AND BEAUTY MR BURNS SAYS MS KERRIGAN'S FEE WILL BE HUGE ESPECIALLY SINCE SHE HAS ALREADY SIGNED A DEAL WITH WALT DISNEY FOR OVER 1 MILLION THAT CALLS FOR A MADEFORTELEVISION MOVIE A BOOK HOME VIDEOS APPEARANCES AT DISNEY THEME PARKS IN FLORIDA AND CALIFORNIA AS WELL TELEVISION COMMERCIALS ONE PRODUCT CATEGORY THAT WON'T BE CONSIDERED SECURITY SYSTEMS ALL OF THE ATHLETES WITH THE EXCEPTION OF MS KERRIGAN ARE PERFECT CANDIDATES FOR COMPANIES THAT WANT TO STRESS SPEED IN THEIR MESSAGE SAY THE MARKETING CONSULTANTS THAT INCLUDES THE FASTFOOD COMPANIES WITH THEIR FAT AD BUDGETS MS BLAIR FOR INSTANCE HAS ALREADY APPEARED IN A MCDONALD'S COMMERCIAL AND MR BRITTAIN SAYS A NEW DEAL MAY BE RENEGOTIATED AND WHERE DOES THIS LEAVE MS HARDING AFTER ALL SHE HAS A HIGH LEVEL OF RECOGNIZABILITY PLEASE SAYS MS LANKTREE SHE HAS BEEN A LOST CAUSE SINCE THE KERRIGAN CLUBBING STORY BROKE ADDS MR BURNS TONYA'S PHONE WON'T RING AT ALL A SECOND REVIEW IS UNDERWAY AT AMERICAN TELEPHONE & TELEGRAPH CO THREE MONTHS AFTER THE BIG CLIENT SHOOK UP ITS AGENCIES BY RESHUFFLING ABOUT 200 MILLION IN TELEVISION AND PRINT ADVERTISING THIS TIME DIRECT MARKETING OF AT&T CONSUMER SERVICES INCLUDING LONGDISTANCE IS AT STAKE A BUSINESS WORTH A COMBINED 300 MILLION IN BILLINGS SAID INDUSTRY EXECUTIVES TWELVE AGENCIES DIVIDE THE BUSINESS AT PRESENT AT&T IS ONE OF THE NATION'S BIGGEST DIRECT MAILERS TO CONSUMERS NINE AGENCIES ARE UNDER CONSIDERATION FOR THE DIRECT MARKETING ASSIGNMENT SAID RUSS NATOCE AT&T DIVISION MANAGER OF MARKETING COMMUNICATIONS AFTER NARROWING THE SEARCH TO ABOUT SIX AGENCIES AT&T PLANS TO NAME THE FINAL ROSTER OF TWO TO FOUR AGENCIES IN MIDMARCH MR NATOCE SAID TWO SURPRISE CONTENDERS ARE SAATCHI & SAATCHI DIRECT A UNIT OF SAATCHI & SAATCHI CO AND LOWE DIRECT A UNIT OF INTERPUBLIC GROUP ALSO COMPETING ARE UNITS OF SEVERAL TRADITIONAL AT&T AGENCIES THEY INCLUDE FCB DIRECT A UNIT OF FOOTE CONE & BELDING WHICH WON THE BULK OF THE BUSINESS IN THE LAST REVIEW WPP GROUP'S OGILVY & MATHER DIRECT YOUNG & RUBICAM TOGETHER WITH ITS WUNDERMAN CATO JOHNSON UNIT AND AYER'S WORLDWIDE 1 ON 1 UNIT THREE OTHER INCUMBENTS THAT SPECIALIZE IN DIRECT MARKETING ARE VYING FOR A PLACE INCLUDING STEINERT & ASSOCIATES NEW YORK PHILLIPS AGENCY HORSHAM PA AND BRONNER SLOSBERG HUMPHREY BOSTON AMERITECH THE CHICAGO OFFICE OF WPP GROUP'S OGILVY & MATHER HAS WITHDRAWN FROM AMERITECH CORP'S REVIEW OF ITS RESIDENTIAL PHONE SERVICE ACCOUNT WITH ESTIMATED BILLINGS OF 35 MILLION TO 40 MILLION AN AGENCY SPOKESWOMAN CITED A DECISION TO HONOR OUR LONGSTANDING RELATIONSHIP WTIH AT&T LEFT IN THE PITCH ARE CHICAGO AGENCIES BAYER BESS VANDERWARKER LEO BURNETT AND THE INCUMBENT TATHAM EURO RSCG 9402250047 940225 NOTABLE & QUOTABLE FROM A BRIEF FILED BY MOTHER TERESA THIS MONTH ASKING THE SUPREME COURT TO HEAR A CASE INVOLVING ALEXANDER LOCE WHO WAS CONVICTED OF TRESPASSING WHEN HE TRIED TO STOP HIS FIANCEE FROM HAVING AN ABORTION AMERICA NEEDS NO WORDS FROM ME TO SEE HOW YOUR DECISION IN ROE V WADE HAS DEFORMED A GREAT NATION THE SOCALLED RIGHT TO ABORTION HAS PITTED MOTHERS AGAINST THEIR CHILDREN AND WOMEN AGAINST MEN IT HAS SOWN VIOLENCE AND DISCORD AT THE HEART OF THE MOST INTIMATE HUMAN RELATIONSHIPS IT HAS AGGRAVATED THE DEROGATION OF THE FATHER'S ROLE IN AN INCREASINGLY FATHERLESS SOCIETY IT HAS PORTRAYED THE GREATEST OF GIFTS A CHILD AS A COMPETITOR AN INTRUSION AND AN INCONVENIENCE IT HAS NOMINALLY ACCORDED MOTHERS UNFETTERED DOMINION OVER THE INDEPENDENT LIVES OF THEIR PHYSICALLY DEPENDENT SONS AND DAUGHTERS AND IN GRANTING THIS UNCONSCIONABLE POWER IT HAS EXPOSED MANY WOMEN TO UNJUST AND SELFISH DEMANDS FROM THEIR HUSBANDS OR OTHER SEXUAL PARTNERS HUMAN RIGHTS ARE NOT A PRIVILEGE CONFERRED BY GOVERNMENT THEY ARE EVERY HUMAN BEING'S ENTITLEMENT BY VIRTUE OF HIS HUMANITY THE RIGHT TO LIFE DOES NOT DEPEND AND MUST NOT BE DECLARED TO BE CONTINGENT ON THE PLEASURE OF ANYONE ELSE NOT EVEN A PARENT OR A SOVEREIGN 9402250046 940225 POTOMAC WATCH RUSSIA DEBATE TALBOTT CLINTON YELTSIN SPY BY PAUL A GIGOT AT THE REPUBLICAN SENATE LUNCH ON TUESDAY MISSISSIPPI CONSERVATIVE TRENT LOTT HELD UP A COPY OF THE LIBERAL NEW REPUBLIC MAGAZINE YOU OUGHT TO KNOW THE MAN YOU'RE VOTING ON HE EXHORTED WAVING A COVER STORY CRITICAL OF STROBE TALBOTT THEN ARIZONA'S JOHN MCCAIN ROSE TO SPEAK FOLLOWED BY MITCH MCCONNELL OF KENTUCKY PENNSYLVANIA'S ARLEN SPECTER AND A PARADE THAT CULMINATED LATER IN 31 REPUBLICANS VOTING AGAINST PRESIDENT CLINTON'S NOMINEE TO BE DEPUTY SECRETARY OF STATE DEMOCRATS HELD SOLID AFTER WHITE HOUSE LOBBYING SO MR TALBOTT WAS CONFIRMED BUT MR CLINTON SHOULDN'T GLOAT THE VOTE WAS ANOTHER SIGN OF HIS NARROW POLITICAL MARGIN TO CONDUCT FOREIGN POLICY STROBE TALBOTT ISN'T JUST ANY STRIPEDPANTS DIPLOMAT AFTER ALL THE FORMER TIME WRITER IS THE PRESIDENT'S OXFORD BUDDY HIS BABYBOOM ALTER EGO AND FOREIGNPOLICY GURU EXPECTED TO BE THE NEXT SECRETARY OF STATE GIVEN THE CLOUT OF FOBS IN THIS ADMINISTRATION MR TALBOTT IS WIDELY ASSUMED TO BE DE FACTO FOREIGN MINISTER ALREADY BY TATTOOING HIM REPUBLICANS WERE MAKING THE POLITICAL EQUIVALENT OF THEIR 1977 STATEMENT AGAINST PAUL WARNKE JIMMY CARTER'S ARMSCONTROL NEGOTIATOR THE NUB OF THE GOP ATTACK CONCERNED MR CLINTON'S RUSSIA POLICY WHICH MR TALBOTT HAS BEEN RUNNING BOB DOLE WHO CAN DETECT VULNERABILITY LIKE A GREAT WHITE SHARK TOLD THE SENATE THAT OVER THE PAST FEW MONTHS RUSSIA HAS BEEN CASTING SILENT VETOES OVER US FOREIGN POLICY OPTIONS MR TALBOTT IS THE LEADING ADVOCATE WITHIN THE ADMINISTRATION FOR YIELDING TO RUSSIA'S WISHES MR DOLE SAID EXPLAINING HIS NYET THIS WEEK'S NEWS THAT THE YELTSIN GOVERNMENT WAS RUNNING AN ALLEGED CIA SPY GIVES THIS GOP ATTACK A POLITICAL ECHO AS DO EVENTS LIKE THE RUSSIAN PARLIAMENT'S PARDON OF COUP PLOTTERS MEANWHILE POLICY WONKS CAN CHEW ON ZBIGNIEW BRZEZINSKI'S BROADSIDE IN NEXT WEEK'S FOREIGN AFFAIRS MR CLINTON'S RUSSIA STRATEGY WRITES THE LAST DEMOCRATIC REALIST IS FLAWED IN ITS ASSUMPTIONS FOCUSED ON THE WRONG STRATEGIC GOAL AND DANGEROUS IN ITS LIKELY RESULT IN SHORT MR CLINTON IS CLOSE TO LOSING THE BIPARTISAN SUPPORT THAT HAS PREVAILED TOWARD RUSSIA SINCE THE COLD WAR ENDED THIS WOULD BE TOO BAD BECAUSE THERE ARE GOOD REALIST ARGUMENTS FOR THE USRUSSIAN PARTNERSHIP THAT MR TALBOTT IS SEEKING FOR EXAMPLE FRED IKLE A STRATEGIST UNDER RONALD REAGAN ARGUES THAT A USRUSSIAN MILITARY PARTNERSHIP REMAINS IN AMERICA'S NATIONAL INTEREST ESPECIALLY TO COPE WITH INEVITABLE REGIONAL THREATS IMAGINE A CONFRONTATION WITH NORTH KOREA MR IKLE SAYS AND WHAT HAPPENS IF RUSSIA IS BASICALLY ON OUR SIDE OR IF IT'S NOT BOTH DICK CHENEY AND LES ASPIN LIKED MR IKLE'S IDEA TO EXPAND PENTAGON TIES WITH THE RUSSIAN MILITARY THE PART OF RUSSIAN SOCIETY MOST WARY OF WESTERN INTENTIONS UNFORTUNATELY MR IKLE ISN'T AN FOB SO INSTEAD OF THE HARDHEADED LOGIC OF NATIONAL INTEREST MR CLINTON SEEMS MOTIVATED MORE BY THE RUSSIAN ROMANTICISM THAT HAS LONG BEEN ONE OF MR TALBOTT'S TRADEMARKS AS PAT GLYNN A SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE WHO AGREES WITH MR IKLE PUTS IT STROBE TALBOTT HAS HAD ONE FOREIGNPOLICY CONCEPT IN HIS LIFE BE NICE TO THE RUSSIANS IT WAS A TERRIBLE IDEA DURING THE COLD WAR IT'S A BETTER IDEA NOW DURING THE COLD WAR THAT MEANT HE IDENTIFIED MORE WITH SOVIET FEARS ABOUT US INTENTIONS THAN WITH THE REALITY OF SOVIET AMBITIONS AND LOOKING BACK NOW IT'S HARD TO THINK OF A SINGLE TALBOTT JUDGMENT ABOUT THE SOVIET UNION THAT DIDN'T PROVE WRONG HIS OPPOSITION TO DEPLOYING NATO MISSILES IN 1982 SCORN FOR SDI A LOVE AFFAIR WITH MIKHAIL GORBACHEV MR TALBOTT'S RECORD HAS BEEN BETTER SINCE 1991 ESPECIALLY WHEN BACKING BORIS YELTSIN WAS AN EASY CALL BUT HE WAS SURPRISED BY THE RISE OF MAD VLAD ZHIRINOVSKY AND FLUMMOXED BY THE FAILURES OF ECONOMIC REFORM HE DOESN'T SEEM TO KNOW MUCH ECONOMICS AT ALL MR TALBOTT HAS ALSO SEEMED EAGER TO EXPLAIN AWAY RUSSIAN INTERVENTIONS IN GEORGIA AND OTHER FORMER SOVIET STATES ON THE RUSSIAN PERIMETER THE US CAN'T DO MUCH ABOUT THESE ANYWAY BUT THIS YEAR THERE MIGHT BE A RUSSIAUKRAINE SHOWDOWN OR MEDDLING IN THE BALTICS IS MR TALBOTT ENOUGH OF A REALIST TO MAKE CLEAR TO THE RUSSIANS WHERE THE US WILL DRAW THE LINE MR CLINTON PACE MR TALBOTT HAS ALSO PUT ONLY THE BEST POSSIBLE LIGHT ON BORIS YELTSIN'S INTERVENTION LAST WEEKEND IN THE BALKAN WAR MAYBE THIS WILL TURN OUT TO BE RIGHT BUT IT'S ALSO POSSIBLE THAT PROSERB NATIONALISM AT HOME IS INDUCING MR YELTSIN TO BACK A GREATER SERBIA IN ANY EVENT IT'S STRIKING THAT WHILE MR CLINTON PREACHES THAT THE US SHOULDN'T ACT UNILATERALLY WITHOUT NATO OR UNITED NATIONS COVER HE BARELY OBJECTS WHEN RUSSIA DOES GEORGE BUSH'S FOREIGN POLICY WAS OFTEN ATTACKED FAIRLY I THOUGHT FOR SACRIFICING AMERICAN IDEALISM TO REALPOLITIK BUT THE PROBLEM WITH MR CLINTON IS THAT HIS POLICY HASN'T SEEMED REALISTIC ENOUGH REPUBLICANS SENSE THIS WHICH IS WHY THEY'RE ATTACKING HIS RUSSIAN POLICY MR CLINTON IS GOING TO HAVE TO TOUGHEN THAT POLICY IN ORDER TO SAVE IT 9402250045 940225 RECORD INDUSTRY REVENUE CLIMBED 11 LAST YEAR BUT GAIN SLOWED FROM 1992 BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RECORDED MUSIC REVENUE SHOWED DOUBLEDIGIT GAINS IN 1993 LED BY SURGING SALES OF COMPACT DISKS BUT THE INCREASES WEREN'T AS SHARP AS IN 1992 THE RECORDING INDUSTRY ASSOCIATION OF AMERICA A WASHINGTON TRADE GROUP SAID MUSIC SALES ROSE MORE THAN 11 IN 1993 TO 10 BILLION COMPARED WITH 9 BILLION A YEAR EARLIER UNIT SALES INCLUDING CASSETTE TAPES COMPACT DISKS MUSIC VIDEOS AND RECORDS REACHED 9556 MILLION AN INCREASE OF 67 THOSE FIGURES WOULD HAVE BEEN HIGHER EXCEPT THAT THE TRADE GROUP ELIMINATED A CATEGORY FOR LIQUIDATED OR DUMPED MERCHANDISE MOSTLY BARGAINPRICED CLOSEOUTS TIM SITES AN ASSOCIATION SPOKESMAN SAID YEAREND FIGURES WOULD HAVE REFLECTED AN ADDITIONAL 1 IN UNITS AND ABOUT HALFAPERCENT IN DOLLAR VALUE IF LIQUIDATED GOODS WERE INCLUDED BY MEANS OF COMPARISON MUSIC REVENUE INCREASED 15 IN 1992 COMPARED WITH 1991 LEVELS WHILE UNIT SALES IN 1992 WERE UP ALMOST 12 IN BOTH THOSE YEARS LIQUIDATEDMERCHANDISE FIGURES WERE INCLUDED THE INDUSTRY HAD A VERY STRONG YEAR IN 1993 WHEN YOU LOOK AT THE ACTUAL DOLLAR INCREASE IN SPENDING SAID MICHAEL SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN INC OF HARTSDALE NY WHICH COMPILES THE SALES NUMBERS FOR THE BILLBOARD MAGAZINE CHARTS IF YOU LOOK AT THE TOP 20 RECORDS AT CHRISTMAS THERE WERE RAPPERS SALOON CROONERS ROCK OPERAS AND SAXOPHONISTS SOMETHING TO DRAW EVERYONE INTO THE RECORD STORE MR SHALETT NOTED THAT THE YEAR'S BIGGEST SELLERS INCLUDED RECORDS BY THE ALTERNATIVE ROCK GROUP PEARL JAM WHOSE VS AND TEN SOLD SIX MILLION UNITS ON A COMBINED BASIS THE BODYGUARD SOUNDTRACK WHICH SOLD CLOSE TO 55 MILLION COPIES SINGER JANET JACKSON'S SELFTITLED RECORD WHICH SOLD 43 MILLION AND SAXOPHONIST KENNY G'S BREATHLESS ALBUM WHICH SOLD 38 MILLION ACCORDING TO SOUNDSCAN DATA MUSIC UNIT SALES THROUGH FEB 20 L994 WERE FLAT COMPARED WITH THE SAME PERIOD IN 1993 HARSH WINTER WEATHER HAS PLAGUED RETAILERS NATIONWIDE SINCE THE CHRISTMAS SELLING SEASON WALL STREET ANALYSTS SUGGESTED THAT THE SLOWDOWN IN REVENUE AND UNIT GROWTH IN 1993 MAY INDICATE THAT MUSIC BUFFS MAY HAVE FINISHED CONVERTING THEIR LIBRARIES FROM RECORDS AND CASSETTES TO COMPACT DISKS THERE IS ALWAYS A PERIOD WHEN NEW FORMATS DRIVE SALES AS WE'VE SEEN WITH COMPACT DISKS SAID LISBETH BARRON AN ENTERTAINMENT INDUSTRY ANALYST WITH SG WARBURG BUT AFTER PEOPLE HAVE TAKEN ADVANTAGE OF THAT NEW FORMAT SALES GROWTH BEGINS TO SLOW MS BARRON PREDICTED THAT MUSIC REVENUE WILL INCREASE 8 TO 10 IN 1994 ONE ENCOURAGING SIGN WAS THAT MUSIC BUYERS OVER THE AGE OF 35 INCREASED THEIR SPENDING BY 41 COMPARED WITH 1992 LEVELS THE TRADE ASSOCIATION NOTED ADULTS AGED 20 AND OVER ACCOUNTED FOR 76 OF ALL MUSIC PURCHASES COMPARED WITH 74 A YEAR EARLIER AS EXPECTED COMPACT DISKS WERE THE LARGEST AND FASTESTGROWING FORMAT UNIT SALES TOTALED 4954 MILLION A 22 INCREASE FROM 1992 WHILE DOLLAR SPENDING WAS UP 22 TO 65 BILLION BY COMPARISON SHOPPERS SPENT 29 BILLION ON MUSIC CASSETTES DOWN 64 COMPARED WITH 1992 WHILE CASSETTE UNIT SALES FELL 73 TO 3395 MILLION MUSIC VIDEOS GENERATED 2133 MILLION UP 36 FROM THE YEAR EARLIER WHILE UNIT SALES JUMPED 45 TO 11 MILLION WHAT YOU'RE SEEING IS A FASTGROWING INDUSTRY WHICH IS BECOMING INCREASINGLY COMPETITIVE SAID PAUL CARDINAL GENERAL COUNSEL TO TRANS WORLD MUSIC CORP A MUSIC RETAILER BASED IN ALBANY NY WHICH OPERATES 700 STORES UNDER SUCH NAMES AS RECORD TOWN TAPE WORLD COCONUTS AND SATURDAY MATINEE EVERY RETAIL MUSIC CHAIN IS GROWING AT THE SAME TIME PROMOTIONMINDED ELECTRONIC RETAILERS LIKE CIRCUIT CITY HAVE GOTTEN INTO THE BUSINESS AS A RESULT MR CARDINAL SAID RECORD STORE PROFIT MARGINS WILL BE UNDER GREATER PRESSURE AS MERCHANTS BECOME INCREASINGLY PRICEMINDED ROCK MUSIC GENERATED THE MOST INTEREST AMONG SHOPPERS ACCOUNTING FOR NEARLY 33 OF THE 10 BILLION MARKET WHILE COUNTRY MUSIC CONTRIBUTED ABOUT 18 RAP MUSIC PRODUCED 78 OF ALL SALES DOWN FROM 79 IN 1992 ACCORDING TO THE TRADE GROUP 9402250044 940225 REVIEW & OUTLOOK EDITORIAL LILLEHAMMER '94 WINTER GAMES THIS IS REFRESHMENT BLARED THE SOFT DRINK ADVERTISEMENT CARRIED DURING THE LILLEHAMMER GAMES A GREAT MANY PEOPLE IN THE WORLD MUST HAVE BEEN HAVING ROUGHLY THE SAME THOUGHT WHILE WATCHING THE SCREEN THE PAST 13 NIGHTS AND THEY WEREN'T THINKING ABOUT COCACOLA THEY WERE MORE THAN LIKELY THINKING ABOUT THE SENSE OF RESPITE FROM EVERYDAY'S MORE FAMILIAR AND DREARY CONCERNS TRUE IN THESE TWO WEEKS THE WORLD HASN'T CHANGED IT DOES HAPPEN THAT THE SHELLING OF SARAJEVO HAS AT LEAST MOMENTARILY CEASED WITH THE RUSSIANS BROKERING THE MUSLIM SURRENDER FINANCIAL MARKETS SEEMED OUT OF SORTS BUT WERE NOT COLLAPSING SEX ALLEGATIONS CONTINUED TO ROCK LONDON AND LITTLE ROCK THE AMERICAN CULTURE WAS IN ITS USUAL DISARRAY A CONTRAST PARTICULARLY POIGNANT WATCHING THE SHINING FACES FROM LILLEHAMMER IN NEW YORK DESMOND ANTOINE A RECENT IMMIGRANT FROM TRINIDAD WHO MADE IT HIS BUSINESS TO TAKE TIME OUT FROM HIS OWN JOB EVERY NIGHT IN ORDER TO WALK HIS DAUGHTER SAFELY HOME FROM HERS WAS SHOT TO DEATH SHIELDING THAT DAUGHTER WHEN MUGGERS CONFRONTED THE TWO MEANWHILE THE TIMES PUBLISHED A TELLING INTERVIEW ON THE REASONS YOUNG COLLEGE WOMEN SEEM TO BE DRINKING MORE TIFFANY 22 EXPLAINED FOR EXAMPLE I FEEL LIKE I HAVE TO TRY TWICE AS HARD BECAUSE I'M A WOMAN SHE DRANK WE LEARNED TO REDUCE THE STRESS OF BEING A WOMAN IN COLLEGE WHILE ANOTHER STUDENT TOLD THE REPORTER IT WAS NECESSARY TO DRINK BECAUSE WOMEN STILL HAVE MORE TO PROVE SO WHO WOULDN'T BE GRATEFUL TO BE ABLE TO TURN EVEN FOR A WHILE TO CONTEMPLATION OF A WORLD WHERE VIOLENCE TAKES THE FORM OF ACCIDENTAL SPILLS AND THE BIGGEST CRIME SEEMS TO BE THAT OF A HANDFUL OF JUDGES WHO IN THE EYES OF AN OUTRAGED AUDIENCE AT LEAST FAILED TO APPRECIATE BRITISH ICE DANCERS TORVILL AND DEAN THE LATTER RECALL BROUGHT DOWN THE HOUSE WITH AN EXQUISITE ROUTINE TO THE TUNE OF IRVING BERLIN'S LET'S FACE THE MUSIC AND DANCE THE JUDGES INSTEAD REWARDED A ROCK'NROLLING RUSSIAN COUPLE LILLEHAMMER WAS CLOUDED IT IS TRUE BY THE SHADOW OF ONE REAL AND BY NOW UNIVERSALLY FAMOUS CRIME THAT THREATENED TO OCCUPY STAGE CENTER OF THESE OLYMPICS THERE WAS THE PREDICTABLE STRUGGLETOTHEDEATH AMONG REPORTERS FOR WORD OF ANY KIND ABOUT TONYA AND NANCY ONE ENTERPRISING JOURNALIST WENT SO FAR AS TO ASK SKATER LILY LEE IF SHE WOULD OBLIGE HIM BY WEARING A WIRE TO RECORD ANY EXCHANGE THAT MIGHT TAKE PLACE BETWEEN TONYA AND NANCY COME TO THINK OF IT REMINDERS OF OUR CURRENT LIFE AND TIMES INTRUDED IN OTHER WAYS JOURNALISTS COVERING THE GAMES WERE PRIVILEGED TO FIND ATTACHED TO THEIR DOORS GIFT PACKETS OF TWO CONDOMS APIECE ALONG WITH ADVICE ON SAFE SEX STILL AGAINST THE HORRORS OF THE REAL WORLD THE PHYSICAL ASSAULT ON NANCY KERRIGAN SEEMED ALMOST INNOCENT ESPECIALLY SINCE HER SKATING SEEMED SO PERFECT INDEED ONE COULD ALMOST FEEL SORRY FOR TONYA HARDING WHOSE STUMBLE SUGGESTED SHE MAY HAVE BEEN THE CRIME'S ULTIMATE VICTIM MOST OF ALL DESPITE EARLY FOREBODINGS THE HARDINGKERRIGAN TODO DIDN'T MANAGE TO OVERSHADOW THE GAMES THE DARK TONES OF THE EPISODE FADED AS EYES TURNED TOWARD THE SNOWY SLOPES AND THE BRIGHT SKIES TOWARD THE SKIERS THE SKATERS THE WILDRIDING LUGERS PICABO STREET CAPTURED A SILVER MEDAL IN SKIING BUT ABOUT THREE GOLDS AS A TELEVISION PERSONALITY THE HIGH MOMENTS WERE NUMEROUS AND INCLUDED NOT LEAST DAN JANSEN'S GOLDWINNING SPEEDSKATING RACE OLYMPICS GAMES WATCHING WAS MADE FOR MOMENTS LIKE THE ONE IN WHICH MR JANSEN SKATED THE VICTORY ROUTE DAUGHTER IN HIS ARMS AND FLOWERS IN HIS HANDS FAILURE AND HARD LUCK THE ATHLETIC KIND ANYWAY BEHIND HIM HE HAD PASSED HIS TEST SO HAD IN ANOTHER WAY MANY OTHER YOUNG ATHLETES HERE WHO HAD WON NO GOLD NOR SILVER NOR BRONZE BUT WHO HAD STRUGGLED AND TRAINED SINGLEMINDEDLY TO WIN A PLACE IN A COMPETITION WHERE THE TESTING WAS HARD AND WHERE THE REWARDS ACCRUE GIVE OR TAKE A BLIND ICEDANCING JUDGE OR TWO ONLY TO THE DISCIPLINED AND THE TALENTED AGAIN A REFRESHING CONTRAST TO A TIME IN WHICH THE NOTION PREVAILS THAT EVERYTHING IS RELATIVE INCLUDING EXCELLENCE INDEED WHEN THE VERY IDEA OF MERIT IS SEEN AS A SYMPTOM OF BIAS OF ONE SORT OR ANOTHER SURELY WHAT WE SAW ON OUR SCREENS THESE TWO WEEKS WAS MULTICULTURALISM AT ITS BEST ATHLETES FROM ALL THE NATIONS OF THE WORLD BUT EVERYONE THERE TO WIN ON MERIT NO WOMAN COMPLAINED OF GENDER BIAS ON THE SKI TRAILS AND THOSE WHO DIDN'T WIN PROFFERED NO EXCUSES ALL THOSE YOUNG PEOPLE HURLING THEMSELVES INTO THEIR OLYMPIC TRIALS WAS AN ENCOURAGING SIGHT ALL RIGHT SO THERE WERE PLENTY OF REASONS TO CHERISH THE OLYMPIC GAMES NOT ONLY FOR ENTERTAINING US ROYALLY FOR TWO WEEKS BUT FOR REMINDING US THAT FOR ALL OUR COMPLAINTS ABOUT MODERN LIFE THE HUMAN CONDITION ALSO EMBRACES THE WHOLESOME 9402250043 940225 FINANCING BUSINESS PLY GEM INDUSTRIES INC PLY GEM INDUSTRIES INC NEW YORK CALLED FOR THE REDEMPTION OF 50 MILLION IN CONVERTIBLE DEBT IN A MOVE TO STRENGTHEN ITS BALANCE SHEET AND SAVE 5 MILLION IN ANNUAL INTEREST EXPENSE THE DEBT 10 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2000 CAN BE CONVERTED TO PLY GEM STOCK AT 1816 A SHARE 5507 SHARES FOR EACH 1000 FACE AMOUNT OF DEBENTURES OR REDEEMED FOR 104833 THE REDEMPTION DATE IS MARCH 23 PLY GEM MAKES AND DISTRIBUTES PRODUCTS FOR THE HOMEIMPROVEMENT INDUSTRY IN AMERICAN STOCK EXCHANGE TRADING PLY GEM'S STOCK ENDED UNCHANGED AT 25 9402250042 940225 THE WOOING OF AMERICAN INVESTORS BY DAVID DUFFY AND LACHLAN MURRAY WHEN ARTHUR LEVITT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION SPEAKS BEFORE THE AMERICAN CHAMBER OF COMMERCE IN FRANKFURT ON MONDAY THE TOP EXECUTIVES OF GERMANY'S LEADING PUBLIC COMPANIES WILL BE LISTENING CAREFULLY THEY WILL NOT BE SEEKING INSIGHT ON EMERGING TRENDS IN THE INTERNATIONAL SECURITIES MARKETS AS THE INVITATION PROMISES HOWEVER INSTEAD THEY WILL BE LOOKING HOPEFULLY FOR SOME INDICATION FROM THE SEC CHAIRMAN THAT HE IS WILLING TO CONSIDER SUBSTANTIVE COMPROMISE AS ONE GERMAN EXECUTIVE PUT IT IN THE LONGRUNNING CONTROVERSY OVER THE LEVEL OF FINANCIAL DISCLOSURE REQUIRED FROM GERMAN COMPANIES WISHING TO LIST THEIR SHARES ON US STOCK EXCHANGES THEY ARE LIKELY TO BE DISAPPOINTED CORPORATE GERMANY WAS SHOCKED BY CONCESSIONS DAIMLERBENZ MADE TO THE SEC LAST AUTUMN WHEN IT BECAME THE FIRST GERMAN COMPANY LISTED ON THE NEW YORK STOCK EXCHANGE IN AGREEING TO REPORT ITS RESULTS ACCORDING TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES GAAP DAIMLER'S MANAGEMENT BROKE RANKS WITH ITS CORPORATE BRETHREN IN A WAR OF OPPOSING PHILOSOPHIES WHERE THE BATTLE LINES ARE DEEPLY DRAWN GERMANY AND THE US HAVE DIAMETRICALLY DIFFERENT APPROACHES TO CAPITAL MARKETS AND TO THE RELATIONSHIP BETWEEN COMPANIES AND THEIR SHAREHOLDERS IN THE US MANAGEMENT IS ULTIMATELY ACCOUNTABLE TO THE SHAREHOLDER AND AN EFFICIENT LIQUID TRANSPARENT MARKET IS THE IDEAL IN THE WORDS OF THE SEC'S CHIEF ACCOUNTANT INFORMATION IS KING AND ALSO QUEEN UNDER THE GERMAN SYSTEM CREDITORS OUTRANK SHAREHOLDERS IN THE CORPORATE LEGAL HIERARCHY THE COUNTRY'S MAJOR FINANCIAL INSTITUTIONS PLAY A PIVOTAL ROLE IN THE CAPITAL MARKETS AND IN CORPORATE GOVERNANCE BY TAKING BIG STAKES ON THEIR OWN ACCOUNT AND ON BEHALF OF INDIVIDUAL CLIENTS IN LEADING COMPANIES THESE STAKES WHICH ARE MONITORED THROUGH SEATS ON THE COMPANIES' SUPERVISORY BOARDS OR SENIOR GOVERNING BODIES MAY LEAD TO A LESS LIQUID MARKET BUT GERMANS ARGUE THEY ARE CRITICAL IN ENABLING MANAGEMENT TO PURSUE LONGTERM STRATEGIES DEUTSCHE BANK THE COUNTRY'S LARGEST ALONE HOLDS MORE THAN 100 CORPORATE BOARD SEATS MANAGEMENT ALSO RECEIVES A GOOD DEAL OF LEEWAY IN THE REPORTING OF FINANCIAL RESULTS IN CALCULATING PENSION LIABILITIES AND IN BUILDING UP HIDDEN RESERVES FROM EARNINGS IN GOOD YEARS WHICH ARE THEN RELEASED TO BOLSTER PROFITS IN LEANER TIMES PERHAPS NOWHERE IS THE DIFFERENCE BETWEEN THESE TWO SYSTEMS SEEN MORE STARKLY THAN IN THE PUBLISHING OF DAIMLERBENZ'S FIRSTHALF RESULTS LAST FALL AS THE COMPANY PREPARED FOR ITS BIG BOARD LISTING WHILE THE COMPANY SHOWED A PROFIT OF 168 MILLION MARKS 97 MILLION UNDER GERMAN RULES DAIMLER REPORTED A LOSS OF 949 MILLION MARKS 548 MILLION AFTER CONFORMING TO GAAP AND ELIMINATING THE IMPACT OF HIDDEN RESERVES THERE ARE MANY OTHER REASONS WHY GERMAN COMPANIES HESITATE TO SUBJECT THEMSELVES TO US REPORTING REQUIREMENTS MAJOR BANKS FOR EXAMPLE WOULD HAVE TO CONSOLIDATE THE RESULTS OF THE INDUSTRIAL COMPANIES IN WHICH THEY HOLD BIG POSITIONS DEUTSCHE BANK'S 28 HOLDING IN DAIMLERBENZ FOR INSTANCE INTO THEIR OWN FINANCIAL STATEMENTS THE COST OF CONVERTING BOOKS TO GAAP IS SUBSTANTIAL GERMAN LAW MAKES NO DISTINCTION BETWEEN PUBLISHED ACCOUNTS AND TAX ACCOUNTS AND AS ONE GERMAN EXECUTIVE PUT IT IT'S A VERY POLITICAL ISSUE BECAUSE GERMAN CEOS HAVE INVESTED TIME ARGUING THAT OUR ACCOUNTING IS BETTER THAN US ACCOUNTING IT IS ALSO A FACT THAT MANY US INSTITUTIONAL INVESTORS CAN AND DO ALREADY INVEST IN GERMAN COMPANIES EITHER THROUGH USTRADED AMERICAN DEPOSITARY RECEIPTS OR BY BUYING SHARES DIRECTLY ON THE FRANKFURT STOCK EXCHANGE NONE OF THESE ARGUMENTS ARE LIKELY TO CARRY THE DAY WITH MR LEVITT OR HIS COLLEAGUES AT THE SEC HOWEVER THE SEC WAS ESTABLISHED IN LARGE PART TO PROTECT THE INTERESTS OF INVESTORS PARTICULARLY SMALL INDIVIDUAL INVESTORS AND THIS IS A CHARGE THAT THE SEC TAKES MOST SERIOUSLY MOREOVER THERE IS LITTLE DOMESTIC PRESSURE IN THE US FOR A RELAXING OF THE RULES FOR GERMAN OR OTHER OVERSEAS COMPANIES A COMMON SENTIMENT EXPRESSED TO US BY SEVERAL LARGE US INVESTORS IS THAT GERMAN COMPANIES HAVE TO PLAY BY THE RULES OF THIS MARKET IF THEY WANT TO LIST HERE THE MOST IMPORTANT RULE WHEN IN THE US IS THAT EVERYONE GETS THE SAME INFORMATION AT THE SAME TIME AMERICAN INVESTORS NOT ONLY WANT A LEVEL PLAYING FIELD THEY WANT GOOD QUALITY INFORMATION THAT THEY CAN USE TO MAKE INFORMED DECISIONS AS GEORGE EVANS OF OPPENHEIMER MANAGEMENT CO PUTS IT THE WAY IT IS NOW INVESTING IN GERMAN COMPANIES CAN BE A STAB IN THE DARK YOU SIMPLY DON'T KNOW ENOUGH ABOUT WHAT'S GOING ON INSIDE THE COMPANY THERE IS A LOT AT STAKE ON BOTH SIDES OF THIS ARGUMENT IF THE US IS TO MAINTAIN ITS POSITION AS HOME OF THE WORLD'S LEADING SECURITIES MARKETS THESE MARKETS MUST CONTINUE TO ATTRACT INTERNATIONAL ISSUERS FROM BOTH DEVELOPED AND EMERGING ECONOMIES FOR THEIR PART GERMAN COMPANIES NEED ACCESS TO CAPITAL AND THEY WILL FIND NO GREATER MORE LIQUID OR FOR THE MOMENT AT LEAST CHEAPER CAPITAL POOLS THAN IN AMERICA THE SECURITIES INDUSTRY ASSOCIATION ESTIMATED LAST YEAR THAT LESS THAN 7 OF AMERICA'S 5 TRILLION OF INSTITUTIONAL AND MUTUAL FUNDS ASSETS ARE INVESTED IN FOREIGN SECURITIES THREEQUARTERS OF THE GERMAN INSTITUTIONAL INVESTORS WE SURVEYED LAST AUGUST SAID THEY EXPECT MORE GERMAN COMPANIES TO TAP THE INTERNATIONAL CAPITAL MARKETS IN THE YEARS AHEAD WITH NEW YORK AND LONDON BEING THE LEADING CANDIDATES EACH SIDE BELIEVES ITS POSITION IS PHILOSOPHICALLY RIGHT IN THE LONG TERM HOWEVER THE PRESSURE HAS TO BE ON GERMANY ALREADY THE TWO MOST GLOBAL MARKETS IN THE WORLD ARE THOSE FOR CAPITAL AND INFORMATION NATIONAL BOUNDARIES BARELY INHIBIT THE MOVEMENT OF MONEY AND NEWS AS OPPENHEIMER'S MR EVANS SAYS THE AMERICAN STANDARD OF DISCLOSURE IS TAKING OVER THE REST OF THE WORLD BUT GERMAN COMPANIES HAVE BEEN AT THE LESS AGGRESSIVE END OF THIS TREND SO FAR A WHOLE HOST OF COUNTRIES HAVE BEEN SWITCHING OVER TO THE INTERNATIONAL SYSTEM LATELY MOST NOTABLY SWITZERLAND WHICH HAS GONE THROUGH TREMENDOUS CHANGES IN THE LAST FIVE OR SIX YEARS WITH REGARD TO THIS ISSUE LAST JULY RENALDO SCHMITZ A MEMBER OF DEUTSCHE BANK'S MANAGING BOARD WARNED IN AN ENGLISHLANGUAGE PUBLICATION IF GERMAN INDUSTRY IS SERIOUSLY INTERESTED IN ATTRACTING FOREIGN INVESTORS INTO ITS EQUITY ON A LONGTERM BASIS IT WILL HAVE TO CHANGE ITS ATTITUDE TOWARD SHAREHOLDER EXPECTATIONS AS DAIMLERBENZ HAS DISCOVERED GERMAN CORPORATIONS WILL ALSO HAVE TO WORK HARD TO ATTRACT US INVESTORS WHO HAVE GROWN USED TO BEING AGGRESSIVELY COURTED BY AMERICAN COMPANIES THOSE PUBLIC GERMAN COMPANIES THAT WANT TO BE COMPETITIVE PLAYERS ON THE GLOBAL STAGE WILL WATCH DAIMLERBENZ AND ITS US LISTING LESS AS THE DESPERATE ACT OF A RENEGADE AND MORE AS THE EXPERIMENT OF A PIONEER THEY WILL LEARN FROM DAIMLER'S EXPERIENCE SO THAT THEIR OWN WILL BE THAT MUCH SMOOTHER WHEN NOT IF THEIR TURN COMES MR DUFFY IS CHAIRMAN OF THE NEW YORK OFFICE OF OGILVY ADAMS & RINEHART A PUBLIC RELATIONS FIRM THAT SPECIALIZES IN CROSSBORDER INVESTOR RELATIONS MR MURRAY HEADS THE FIRM'S FRANKFURT OFFICE 9402250041 940225 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY IN AN OLYMPIC UPSET MODEST CHARM SCORES VICTORY OVER BRAZEN SCANDAL BY MICHAEL W MILLER AND ROGER THUROW STAFF REPORTERS OF THE WALL STREET JOURNAL LILLEHAMMER WITH THE 17TH WINTER OLYMPICS ENTERING THEIR FINAL WEEKEND IT'S TIME FOR SOME READER PARTICIPATION STAND UP AND BOUNCE ON YOUR TOES SHAKE YOUR LEFT LEG THEN YOUR RIGHT SWIVEL YOUR HIPS AND THUMP YOUR CHEST WITH ONE ARM AFTER ANOTHER FEEL WARMER THAT'S HOW THE TIRELESSLY HOSPITABLE OLYMPIC ORGANIZERS WITH HELP FROM A PERKY SONG CALLED OLFLOKE CHASE AWAY FROSTBITE FROM SPECTATORS AT THE OUTDOOR EVENTS WHEN THE TEMPERATURES PLUNGE BELOW ZERO OLFLOKE TRANSLATES LOOSELY AS MOVEMENT OF THE ARMS TO KEEP WARM AT THE OLYMPICS IT WAS THE OLYMPICS NOT THE OPPLAND COUNTY FAIR BUT SOMETIMES IT WAS HARD TO BE SURE PROPELLED ONTO THE WORLD STAGE FOR A FORTNIGHT TINY LILLEHAMMER SCORED A TRIUMPH BY TURNING THE INTERNATIONAL EXTRAVAGANZA INTO A COZY FOLK JAMBOREE THE TOWN CLEARED MILES OF TRAILS INTO THE WOODS FOR PARADES OF CROSSCOUNTRY BUFFS WITH NORWEGIAN FLAGS STICKING OUT OF THEIR BACKPACKS AND PAINTED ON THEIR FACES HOOKNOSED TROLLS ON STILTS GREETED FANS AT THE FREESTYLE ARENA AN ENCAMPMENT OF VIKINGS IN FULL DRESS SOLD JEWELRY AND JOUSTED ON TREE STUMPS CHILDREN IN BAGGY ELF GARB AND FOLK COSTUMES DANCED ON LITTLE BLONDWOOD STAGES BETWEEN RACES THE UBIQUITOUS TOTS EVEN DONNED SKATES TO RETRIEVE THE BOUQUETS HURLED AT NANCY KERRIGAN AND TONYA HARDING WHO BRUSHED THEM AWAY WITH A FROWN BEHIND ALL THE NORWEGIAN FLAGWAVING AND BELLRINGING WAS A CONFLICT RENDING THE NORDIC SOUL HOW TO BE PATRIOTIC AND EGALITARIAN AT THE SAME TIME HOW TO ENTHUSIASTICALLY ROOT FOR YOUR COUNTRYMEN WHILE STILL ACTING LIKE GOOD HOSTS ON A DAY WHEN THE NORWEGIAN ATHLETES ADDED TO THEIR MEDAL HAUL PLACING THEM TEMPORARILY ATOP THE MEDALS STANDINGS LARS SKJOLAS SHEEPISHLY WELCOMED A ROOMFUL OF FOREIGN GUESTS ON BEHALF OF OPPLAND COUNTY THE WAY THE OLYMPICS HAS STARTED HE SAID WE ARE ALMOST EMBARRASSED BY ALL THE NORWEGIAN MEDALS AS HOSTS WE ARE NOT SUPPOSED TO WIN IT ALL WE HOPE IT EVENS OUT A BIT AS WE GO ALONG BUT NOT TOO MUCH IN FAVOR OF THE SWEDES MIND YOU STOKING THE RIVALRY BETWEEN THE SCANDINAVIAN NEIGHBORS ONE NORWEGIAN NEWSPAPER DELIGHTFULLY REMINDED THE SWEDES OF THEIR AT THAT TIME MISERABLE PERFORMANCE WITH THIS MEDALSCOUNT HEADLINE SWEDEN EQUALS FIJI WATCHING EUROSPORT ON TV IN THE ATHLETES' VILLAGE AMERICAN PICABO STREET SUDDENLY SAW THE SCREEN FILL WITH PICABO STREET SKIING TOWARD THE SILVER MEDAL IN THE WOMEN'S ALPINE DOWNHILL THAT VERY MORNING SHE BEAMS WITH DELIGHT AS A BRITISH SPORTSCASTER ANNOUNCES HER NAME YOU'LL NEVER MEET A MORE COCKY YOUNG LADY THE SPORTSCASTER DECLARES MS STREET RAISES HER EYEBROWS WOW THAT WAS RUDE SHE MURMURS ON TV THE YOUNG AMERICAN SKIER FLIES INTO THE AIR OVER A JUMP OFTEN LETS HER ARROGANCE AND CONFIDENCE GET THE BETTER OF HER ABILITY OPINES THE SPORTSCASTER GOD THE GUY DOESN'T LIKE ME VERY MUCH SAYS MS STREET WRINKLING HER NOSE WITH A FROWN ON TV PICABO STREET ROARS AHEAD TO GLORY IN THE VILLAGE PICABO STREET SILENCES THE SPORTSCASTER WITH HER OWN PLAYBYPLAY STAY LOW STAY LOW FIGHTING SHE'S FIGHTING THE TV IMAGE WHIZZES ACROSS THE FINISH LINE YESSSS BOTH PICABOS THROW THEIR ARMS INTO THE AIR LILLEHAMMER'S LIU LAN RESTAURANT DOESN'T SERVE LUTEFISK FISH SOAKED IN LYE NOR GUDBANDSDALSOST BROWN CARAMELFLAVORED CHEESE NOR REINDEER PATE BUT IT MAY STILL HAVE THE STRANGEST MENU IN TOWN HAVE SOME FRITYRSTEKT SURSOT SVINEFILET SWEET AND SOUR PORK OR BETTER YET BIFF M/BAMBUSSKUDD HAIKU GRAFFITO EN ROUTE TO THE 15KILOMETER CROSSCOUNTRY RACE WHAT'S HE DOING BY THE ROAD OH HE'S HITCHHIKING WITH UPWARD OF 100000 VISITORS STEAMING IN THIS TOWN OF 23600 EVERY DAY IT WAS HARD TO FIND A PLACE OF SOLITUDE THERE WAS ONE THOUGH JUST HALF A BLOCK OFF LILLEHAMMER'S MAIN STREET JUST AROUND THE CORNER FROM PIN TRADERS SWEATER SHOPPERS AND COWBELLRINGING SKI FANS AT THE KIO ART GALLERY THERE ARE 63 WORKS OF LOCAL OPPLAND COUNTY ARTISTS AND ZERO VISITORS JUST 18YEAROLD THOR SOLBERG LEAFING THROUGH A NEWSPAPER WHILE MINDING THE DOOR SOOTHING SCENES IN ICY BLUES AND GRAYS FILL THE HUSHED WOODPLANKED GALLERY MR SOLBERG POINTS TO HIS FAVORITE WORK A SMOOTH TUSKLIKE SCULPTURE CALLED EIN STILL SONG TIL HAVET A SILENT SONG TO THE SEA THE MOST HAZARDOUS PLACE AT THE OLYMPICS ISN'T THE CURVE WHERE SPEED SKATER DAN JANSEN SLIPPED OR THE PLUNGING REINDEER RIDE ON THE ALPINE COURSE AT KVITFJELL IT IS THE PAVEMENT OUTSIDE THE JUMP IN BAR ACROSS FROM THE HAKON HALL HOCKEY RINK A HORRENDOUS SLICK OF ICE THERE TOPPLED STREAMS OF HAPLESS PEDESTRIANS EVERY DAY ODD EDGAR LARSEN A LOCAL COCACOLA CO MANAGER WHOSE WIFE WORKS AT THE JUMP IN RECALLS SEEING AT LEAST 20 PEOPLE TUMBLE ON THE SAME SPOT PARADING BACK FROM A CROSSCOUNTRY RACE 15YEAROLD KJERSTI NILSEN STEPPED ONTO THE DEADLY PATCH SKIDDED OUT OF CONTROL AND NARROWLY AVOIDED FALLING RIGHT BEHIND HER CHRISTIAN BOKKE CAME CLATTERING ONTO THE PAVEMENT HIS CROSSCOUNTRY SKIS AND BACKPACK FLYING INTO THE AIR I'M USED TO THE ICE BUT NOT THAT MUCH ICE HE SAID SMOOTHING OUT THE NORWEGIAN FLAG CLIPPED TO HIS OVERALLS HE ALSO ATTRIBUTED HIS FALL TO A NORWEGIAN BREW OF MOONSHINE AND COFFEE CALLED KARSK FREEZING WEATHER TURNED MUCH OF LILLEHAMMER INTO A GIANT ICY RINK AS THE GAMES DREW TO A CLOSE THE OFFICIAL COUNT OF BROKEN BONES STOOD AT 210 THE CASUALTIES INCLUDED AT LEAST FOUR CORPORATE GUESTS FIGHTING THEIR WAY OUT OF THE OPENING CEREMONIES AND US NORDIC COMBINED ATHLETE TIM TETREAULT WHO SLIPPED IN DOWNTOWN LILLEHAMMER AND BROKE HIS LEFT LEG MONA INGELA STANLEY OF LAHTI FINLAND WAS CHEERING HER HUSBAND JARI MANTILA IN THE NORDIC COMBINED EVENT WHEN SHE LOST HER FOOTING AND SMASHED HER WRIST THERE'S MORE SNOW IN FINLAND SHE MUTTERED GLUMLY WHILE WAITING FOR AN XRAY IN THE SURGERY CLINIC AT LILLEHAMMER STATE HOSPITAL THEN THERE'S THE DISCO IN THE ATHLETES VILLAGE KULTUROG FRITIDSAKTIVITETER CULTURE AND LEISURE ACTIVITIES PROCLAIMS A NOTICE ON THE DOOR WELCOME TO DISCOTHEQUE INSIDE REGGAE MUSIC BOOMS FROM THE SPEAKERS AND GREEN AND RED SPOTLIGHTS SWAY ON THE DANCE FLOOR ALONG THE WALLS ARE A RING OF WOOD TABLES EACH NEATLY LAID WITH A CANDLE CENTERPIECE THIRTY MINUTES INTO THE PARTY THERE ARE JUST THREE PEOPLE IN THE BIG ROOM WHO SEEM TO HAVE WANDERED IN BY MISTAKE AT ONE TABLE MIKLOS GYULAI A HUNGARIAN BOBSLED BRAKEMAN SITS QUIETLY WITH HUNGARIAN SKIER AGNES LITTER I'LL JUST LISTEN TO THE MUSIC AND AT 10 O'CLOCK I'LL GO TO BED HE SAYS MARCO FELDER OF THE LIECHTENSTEIN LUGE TEAM SLOUCHES ALONE AT THE NEXT TABLE BLANKLY TAPPING HIS FINGERS TO THE BEAT I HEARD THE GOOD MUSIC SO I'M JUST HANGING AROUND TO LISTEN FOR A LITTLE HE SAYS WATCHING SADLY FROM THE DOORWAY IS BRIT HEKSEM OF THE OFFICIAL CULTURE AND LEISURE STAFF SHE SAYS THE ATHLETES ARE FAR MORE INTERESTED IN PLAYING POOL IN THE GAME ROOM NEXT DOOR IT HASN'T BEEN VERY CROWDED BUT I CAN HOPE SHE SAYS AND PRAY AFTER THE GAMES LILLEHAMMER PLANS TO CONVERT THE DISCO INTO A CHURCH 9402250040 940225 BUSINESS BRIEF FORD MOTOR CO NEW WINDSTAR GL MINIVAN PRICED AT 19455 TO 23540 FORD MOTOR CO SAID A WELLEQUIPPED WINDSTAR GL MINIVAN WILL HAVE A BASE PRICE OF 19455 WINDSTAR IS FORD'S FIRST ENTRY IN THE FRONTWHEELDRIVE MINIVAN SEGMENT AND HAS BEEN HAILED AS THE FIRST SERIOUS COMPETITOR TO CHRYSLER'S MINIVANS CHRYSLER'S GRAND CARAVAN AND GRAND VOYAGER ARE PRICED AT 18200 TO 23400 THE WINDSTAR IS DERIVED FROM FORD'S HOTSELLING TAURUS SEDAN WITH A RIDE AND FEEL SIMILAR TO A PASSENGER CAR ANALYSTS SAY DUAL AIRBAGS ANTILOCK BRAKES AND AIR CONDITIONING ARE AMONG WINDSTAR'S STANDARD FEATURES THE TOPOFTHELINE WINDSTAR LX MINIVAN WILL START AT 23540 THE VEHICLES WILL ARRIVE IN DEALER SHOWROOMS THIS SPRING 9402250039 940225 POLITICS & POLICY RUSSIA OFFERS CIA NO HELP IN SPY CASE US WANTS EMBASSY OFFICIAL EXPELLED BY JOHN J FIALKA AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A HIGH LEVEL CENTRAL INTELLIGENCE AGENCY TEAM SENT TO MOSCOW TO SEEK RUSSIA'S COOPERATION IN THE UNFOLDING SPY SCANDAL IS RETURNING EMPTY HANDED ACCORDING TO A SENIOR US OFFICIAL THE CLINTON ADMINISTRATION HAS ASKED THAT MOSCOW WITHDRAW AT LEAST ONE TOP OFFICIAL FROM THE RUSSIAN EMBASSY IN WASHINGTON WHO IT SAYS RAN ALDRICH AMES THE CIA'S FORMER COUNTERINTELLIGENCE CHIEF ACCUSED OF SPYING FOR THE SOVIET UNION AND RUSSIA THE ADMINISTRATION SENT THE HIGHLEVEL CIA TEAM TO MOSCOW EARLIER THIS WEEK TO MEET WITH RUSSIAN INTELLIGENCE OFFICIALS AND DISCUSS THE WHOLE CASE HOW TO PROCEED AND WHO WOULD TAKE RESPONSIBILITY SAID THE TOP US OFFICIAL THEY WEREN'T TURNED DOWN BUT THEY WEREN'T GIVEN ANY ASSURANCES OFFICIALS SAID THAT THE ADMINISTRATION WOULD NOW INCREASE THE DIPLOMATIC PRESSURE ON THE YELTSIN GOVERNMENT FOR SWIFT SATISFACTION OR EXPEL THE RUSSIAN OFFICIAL OR PERHAPS OTHER OFFICIALS MOSCOW'S RECALCITRANCE COMES AT A TIME WHEN SENIOR LAWMAKERS ARE CALLING FOR RETALIATION INCLUDING A SUSPENSION OF US AID TO RUSSIA PRESIDENT CLINTON IS TO MEET WITH CONGRESSIONAL LEADERS AT THE WHITE HOUSE THIS MORNING TO TRY TO QUELL THEIR ANGER OVER THE SCANDAL FOR A SECOND DAY IN A ROW SECRETARY OF STATE WARREN CHRISTOPHER FACED TOUGH QUESTIONING ON CAPITOL HILL ABOUT THE SPY CASE AND THE ADMINISTRATION'S CONTINUED ENTHUSIASM FOR RUSSIAN PRESIDENT BORIS YELTSIN REP BENJAMIN GILMAN R NY THE RANKING MINORITY MEMBER OF THE HOUSE FOREIGN AFFAIRS COMMITTEE AND A LONGTIME SUPPORTER OF AID TO RUSSIA WARNED MR CHRISTOPHER THAT THE ARREST AND THE SIGNAL THAT MOSCOW IS SENDING WITH THIS CONTINUED SPYING COULD ERODE US PUBLIC SUPPORT FOR AID TO RUSSIA THERE WERE ALREADY SOME RESERVATIONS ABOUT MAINTAINING SUCH A HIGH LEVEL GIVEN THE UNCERTAINTY OF THE RUSSIANS' COMMITMENT TOWARD NECESSARY ECONOMIC REFORM HE SAID YESTERDAY MORNING CIA OFFICIALS BRIEFED THE HOUSE INTELLIGENCE COMMITTEE IN A CLOSEDDOOR SESSION ON THE CASE OF MR AMES AND HIS WIFE ROSARIO WHO WERE ARRESTED ON ESPIONAGE CHARGES THIS WEEK ACCORDING TO COMMITTEE MEMBERS THE CIA HOPES TO INTERVIEW RUSSIAN SPIES IMPRISONED BY THEIR GOVERNMENT IN HOPES THAT THE US CAN DETERMINE HOW MANY EXECUTIONS MAY HAVE OCCURRED BECAUSE OF MR AMES'S ALLEGED DISCLOSURES THE OFFICIALS SAID THEY HAD NO FIRM EVIDENCE ON THE NUMBER OF EXECUTIONS HOWEVER THEY SUGGESTED THERE WERE AS MANY AS 10 INDIVIDUALS SECRETLY WORKING FOR THE CIA AND FEDERAL BUREAU OF INVESTIGATION WHO DISAPPEARED AT THE HEARING THERE WAS GREAT DISSATISFACTION BECAUSE OF HOW LITTLE HARD INFORMATION THE CIA COULD DIVULGE IN AN ATTEMPT TO ADDRESS THE ESPIONAGE PROBLEM SEVERAL SENATORS HAVE REINTRODUCED LEGISLATION THAT WILL GIVE THE FBI AND THE CIA MORE POWER TO INVESTIGATE THE FINANCES AND OTHER ASPECTS OF THE LIVES OF EMPLOYEES WITH ACCESS TO SECRETS I WANT TO POINT THE BLAME ON OURSELVES WE'VE BEEN NAIVE SAID SEN WILLIAM COHEN R MAINE WHO EXPLAINED THE CHANGES IN THE LEGISLATION WERE RECOMMENDED BY A HIGHLEVEL PANEL FOUR YEARS AGO AS A WAY TO PREVENT PEOPLE FROM SELLING SECRETS BUT WERE THEN IGNORED BY CONGRESS WHILE THE PANEL'S RECOMMENDATIONS WERE WRITTEN INTO LEGISLATION BY MEMBERS OF THE SENATE INTELLIGENCE COMMITTEE IN 1990 THE BILL NEVER MADE IN OUT OF THE COMMITTEE THE ATTITUDE OF CONGRESS AT THE TIME SEN COHEN SAID YESTERDAY WAS THAT THE END OF THE COLD WAR MADE THE CHANGES UNNECESSARY MR YELTSIN MEANWHILE INCREASED CONCERN ABOUT THE DIRECTION OF RUSSIAN POLITICS IN A TOUGHLY WORDED ADDRESS TO PARLIAMENT MR YELTSIN DECLARED THAT RUSSIA WOULD NO LONGER MAKE WHAT HE SAID WERE ONESIDED CONCESSIONS ON FOREIGN POLICY AND DEFENSE HE ALSO HARSHLY CRITICIZED THE CLINTON ADMINISTRATION'S PLAN FOR SLOWLY EXPANDING THE NORTH ATLANTIC TREATY ORGANIZATION EASTWARD WARNING THAT ANY ATTEMPT TO ENLARGE THE ALLIANCE WITHOUT RUSSIA WAS THE PATH TOWARD NEW THREATS FOR EUROPE AND THE WORLD WILLIAM CUMMINGS THE LAWYER FOR MRS AMES SAID HIS CLIENT HAS BEEN DEVASTATED BY THE DISTORTIONS OUTOFCONTEXT SELECTED STATEMENTS AND ALLEGED QUOTATIONS IN THE GOVERNMENT'S AFFIDAVIT ALONG WITH THE SUBSEQUENT PRESS COVERAGE SHE WILL BE GIVING NO REBUTTAL TO THE PRESS HIS OFFICE SAID HOWEVER THAT MRS AMES WOULD HAVE A BRIEF STATEMENT AT A LATER TIME IT ISN'T CLEAR WHETHER THE PROPOSED EXPANSION OF CIA AND FBI POWERS TO INVESTIGATE EMPLOYEES WOULD HAVE TRIPPED UP MR AND MRS AMES SEN DAVID BOREN D OKLA WHO IS COSPONSORING THE MEASURE SAID THE CHANGES MIGHT HAVE ENABLED THE GOVERNMENT TO DETECT MR AMES'S ACTIVITIES EARLIER TODAY THE GOVERNMENT'S ACCESS TO PRIVATE FINANCIAL DATA IS LIMITED AND A COURT ORDER IS NEEDED TO INVESTIGATE PRIVATE BUSINESS DEALINGS TO VERIFY EMPLOYEE INCOME MR AMES WAS ABLE TO CONCEAL WHAT ARE ALLEGED TO BE MORE THAN 1 MILLION IN PAYMENTS FROM THE RUSSIANS BY TELLING HIS CIA SUPERVISORS THAT THE MONEY CAME FROM HIS COLOMBIANBORN WIFE'S WEALTHY FAMILY KNOWING THAT AGENCIES COULD SPOTCHECK INFORMATION LIKE THAT WITHOUT GIVING ANY WARNING WILL GIVE PEOPLE A BIG DISINCENTIVE FOR LYING IN THE FUTURE SAID SEN BOREN THE PROPOSED CHANGES WOULD ALSO REQUIRE EMPLOYEES LIKE MR AMES TO REPORT ALL OVERSEAS TRAVEL AND TO AGREE TO RANDOM POLYGRAPH TESTS MR AMES APPARENTLY TRAVELED TO SOUTH AMERICA WITHOUT TELLING THE CIA AND PASSED TWO POLYGRAPH TESTS WHICH ARE NOW ADMINISTERED EVERY FIVE YEARS IN TESTIMONY YESTERDAY BEFORE THE HOUSE INTELLIGENCE COMMITTEE CIA DIRECTOR R JAMES WOOLSEY ENDORSED THE MEASURE TO BROADEN THE FBI AND CIA'S POWER TO INVESTIGATE EMPLOYEES HE HAD SERVED ON THE COMMISSION THAT ORIGINALLY SUGGESTED THESE STEPS HE DECLINED TO COMMENT ON THE SPECIFICS OF THE AMES CASE DURING THE SESSION WHICH WAS FOCUSED ON THE CIA'S BUDGET AND OTHER MATTERS MR WOOLSEY NOTED HOWEVER THAT HE WAS CONCERNED THAT CHANGES TO IMPROVE SECURITY WOULD HAVE TO BE PROPERLY BALANCED AGAINST THE CONSTITUTIONAL RIGHTS OF EMPLOYEES WITH WORRIES ABOUT RUSSIA MOUNTING SECRETARY OF STATE CHRISTOPHER WORKED HARD IN HIS CAPITOL HILL TESTIMONY TO FIND A SILVER LINING IN MR YELTSIN'S SPEECH HE POINTED TO THE RUSSIAN LEADER'S PERSONAL COMMITMENT TO COMBAT INFLATION AND NOTED THAT MR YELTSIN WAS IN A STRONG VIGOROUS MOOD AND MADE A STRONG VIGOROUS SPEECH WHICH IS A GOOD SIGN IN ITSELF SOUNDING A THEME THAT MR CLINTON WILL TAKE WITH CONGRESSIONAL LEADERS TODAY MR CHRISTOPHER EMPHASIZED THAT AID TO RUSSIA IS NOT CHARITY BUT AN INVESTMENT IN US SECURITY A DEMOCRATIC REFORMORIENTED RUSSIA WOULD BE A STABLE AND RELIABLE PARTNER FOR THE US HE SAID CERTAINLY A CONTINUATION OF THE NUCLEAR ARRANGEMENTS THAT WE HAVE WITH THEM WHICH WILL RESULT IN THE DISMANTLEMENT OF THOUSANDS OF NUCLEAR WEAPONS MAKES THE US AND THE REST OF THE WORLD SAFER HE SAID JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9402250038 940225 GREAT WORK IF YOU CAN GET IT MILLIONS FOR AN 18MONTH JOB WESTINGHOUSE OFFICIAL HIRED TO CLEAN UP SOUR LOANS IN FINANCE UNIT CLEANS UP BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ROBERT A WATSON JUST EARNED MORE THAN 10 MILLION FOR 18 MONTHS OF WORK AND HE ISN'T EVEN A PROFESSIONAL BALLPLAYER INSTEAD MR WATSON WAS BROUGHT IN TO LIQUIDATE THE MESSY FINANCIALSERVICES ARM OF WESTINGHOUSE ELECTRIC CORP AT WESTINGHOUSE WHICH HAD A NET LOSS OF 326 MILLION LAST YEAR HIS COMPENSATION IS CONSIDERED QUITE GENEROUS MR WATSON LEFT WESTINGHOUSE IN DECEMBER BUT THE COMPANY NEVER PUBLICLY ANNOUNCED THAT ALTHOUGH IT DID TELL THE NEW YORK STOCK EXCHANGE SO HOW COULD HE EARN SO MUCH MONEY SO QUICKLY AT A COMPANY WITH SUCH BIG LOSSES HERE'S HOW MR WATSON WHO IS 48 YEARS OLD WAS RECRUITED FROM TRANSAMERICA CORP IN SAN FRANCISCO IN JUNE 1992 BY FORMER WESTINGHOUSE CHAIRMAN PAUL E LEGO TO WORK AT WESTINGHOUSE FINANCIAL SERVICES INC WHERE HE BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT THE TIME WESTINGHOUSE ELECTRIC WAS DROWNING IN BILLIONS IN CHARGES BECAUSE OF SOUR LOANS BY THE CREDIT UNIT MR WATSON WAS PROMISED A BASE SALARY OF 600000 A YEAR AND GIVEN A 400000 SIGNING BONUS HE ALSO GOT A GUARANTEE OF A 10 PAY INCREASE IN JANUARY 1993 AND ANOTHER 10 RAISE IN JANUARY 1994 AND HE WAS PROMISED AN INCENTIVE BONUS OF AT LEAST 300000 A YEAR BUT HERE WAS THE BEST PART OF HIS DEAL WESTINGHOUSE WANTED HIM TO GET RID OF BILLIONS OF THE CREDIT ARM'S SOUR LOANS IF HE COULD BRING THOSE ASSETS DOWN TO UNDER 3 BILLION HIS JOB WOULD BE CONSIDERED DONE AND IF HE CHOSE TO LEAVE HE WOULD BE PAID ALL SIX YEARS OF HIS CONTRACT SOON AFTER MR WATSON JOINED WESTINGHOUSE DETAILS OF HIS EMPLOYMENT CONTRACT WERE LEAKED TO INSIDERS WHO BEGAN REFERRING TO HIM AS RICH BOB WITHIN JUST ABOUT A YEAR OF GETTING THE JOB MR WATSON SEEMED TO HAVE SUCCEEDED THE CREDIT UNIT WHICH HAD 862 BILLION IN ASSETS EXCLUDING OFFBALANCESHEET LIABILITIES BEFORE MR WATSON ARRIVED REACHED THE 3 BILLION BENCHMARK LAST JUNE IN FACT ASSETS IN WESTINGHOUSE'S FINANCIALSERVICES UNIT ARE DOWN TO ABOUT 1 BILLION ON PAPER IT APPEARS THAT MR WATSON HAD A GREAT RECORD BUT IN FACT ONE BIG REASON THE ASSETS SHRANK SO QUICKLY WAS SIMPLE WESTINGHOUSE JUST WROTE DOWN ABOUT 265 BILLION IT GOT HIM A GOOD PART OF THE WAY SAYS ONE PERSON CLOSE TO THE SITUATION SO OF THE 562 BILLION MR WATSON HAD TO GET RID OF HALF OF IT WAS IN EFFECT JUST EXCISED BY THE STROKE OF A PEN MR WATSON'S EMPLOYMENT CONTRACT DIDN'T SAY HOW THE FIGURE HAD TO GET UNDER 3 BILLION SO A PRETAX WRITEDOWN WAS FAIR GAME UNDER MR WATSON'S LEADERSHIP WESTINGHOUSE ALSO SOLD MOST OF ITS COMMERCIAL REALESTATE ASSETS FOR 1 BILLION OR 52 OF THE PROPERTIES' ORIGINAL BOOK VALUE BUT IT SOLD THEM IN A WAY TO ITSELF AFTER FAILING TO SELL THAT PORTFOLIO TO GENERAL ELECTRIC CO IT FORMED A PARTNERSHIP CONSISTING OF ITSELF AND ITS MAIN INVESTMENT BANKER LEHMAN BROTHERS INC WESTINGHOUSE MADE A 150 MILLION EQUITY INVESTMENT IN THE PARTNERSHIP IN DECEMBER WITH HIS JOB DONE HE LEFT MR WATSON'S EMPLOYMENT CONTRACT ALSO GUARANTEED THAT HE WOULD RECEIVE A PENSION AS IF HE HAD STARTED WORK AT WESTINGHOUSE ON APRIL 15 1968 ADD TO THAT THE FACT THAT HIS CONTRACT EXPIRES IN 1997 AND HE EFFECTIVELY IS CREDITED WITH 30 YEARS OF SERVICE ALAN JOHNSON OF JOHNSON ASSOCIATES INC A NEW YORK COMPENSATIONCONSULTING FIRM ESTIMATES THAT MR WATSON'S PENSIONBASED ON COMPENSATION OF 900000 A YEAR WOULD BE BETWEEN 400000 AND 500000 ANNUALLY IN ALL ONE PERSON CLOSE TO THE SITUATION SAYS MR WATSON LEFT WITH A PAYMENT IN EXCESS OF 10 MILLION THAT INCLUDED FIVE YEARS OF BASE SALARY OR ABOUT 35 MILLION BONUSES OF 700000 A YEAR FOR FIVE YEARS OR 35 MILLION AN EQUITYPLUS GRANT UNDER WESTINGHOUSE'S LONGTERM INCENTIVE PROGRAM OF ABOUT 2 MILLION FOR WORK PERFORMED IN 1993 AND AN ADDITIONAL BONUS OF MORE THAN 2 MILLION THE COMPANY WOULD NEITHER CONFIRM NOR DENY THE 10 MILLION FIGURE FOR THE RECORD I'M CHOKING GAGGING SAID RICHARD KOPPES GENERAL COUNSEL FOR CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM A LARGE INSTITUTIONAL HOLDER WHEN MR WATSON'S EARNINGS WERE DESCRIBED BUT WESTINGHOUSE WHICH SAYS IT WILL DISCLOSE HIS COMPENSATION IN ITS 1993 PROXY STATEMENT SAYS MR WATSON WAS WORTH WHAT HE WAS PAID MR WATSON LEFT BECAUSE HE HAD IN A VERY TIMELY MANNER AHEAD OF SCHEDULE COMPLETED HIS ASSIGNMENT SAYS FREDERICK WELLS HILL A COMPANY SPOKESMAN MR WATSON CUT THE COMPANY'S PORTFOLIO EXPOSUREASSETS AND OFFBALANCESHEET LIABILITIES BY BILLIONS MR HILL ADDS AND DID SO AT PRICES ABOVE BOOK VALUE MR HILL WASN'T REFERRING TO THE ORIGINAL BOOK VALUE BUT TO A REDUCED VALUE ASSIGNED AFTER THE COMPANY REVIEWED ITS PORTFOLIO MR WATSON COULDN'T BE REACHED FOR COMMENT MR LEGO THE CHAIRMAN WHO BROUGHT IN MR WATSON SAYS I HAVE NO IDEA WHAT BOB ACTUALLY GOT BUT WHATEVER HE GOT HE DESERVED IF YOU LOOK AT THE PROBLEM HE FACED WHEN HE CAME IN TO WORK THERE WE WERE NOT TRYING TO FIND SOMEBODY WHO WOULD WORK AT MINIMUM WAGE WE WERE TRYING TO FIND SOMEONE WHO WOULD FIX THE FINANCIALSERVICES UNIT MR LEGO WHO WAS FORCED TO RESIGN IN JANUARY 1993 WAS SUCCEEDED BY MICHAEL H JORDAN MR JORDAN RECEIVED A 1 MILLION ANNUAL SALARY AND A 400000 SIGNING BONUS WHEN HE JOINED THE COMPANY LAST YEAR HIS ANNUAL TARGET BONUS IS NO LESS THAN 500000 DEPENDING ON GOALS SET BEFORE EACH YEAR HE CAN RECEIVE 0 TO 200 OF THAT BONUS MR JORDAN ALSO WAS INCLUDED IN WESTINGHOUSE'S LONGTERM BONUS PROGRAM WHICH STARTED IN 1992 AND ENDS THIS YEAR IF THE COMPANY REACHES CERTAIN GOALS HE COULD GET ANOTHER 500000 KIT BINGHAM A FREQUENT CRITIC OF WESTINGHOUSE SAID YOU'RE KIDDING WHEN GIVEN A DESCRIPTION OF MR WATSON'S PACKAGE BUT MR BINGHAM DIRECTOR OF RESEARCH FOR LENS INC A WESTINGHOUSE SHAREHOLDER ADDED CLEARLY A COMPANY LIKE WESTINGHOUSE WOULD HAVE TROUBLE TRYING TO ATTRACT TALENT SO I WOULDN'T WANT TO CRITICIZE THIS MR WATSON'S JOB IS STILL AVAILABLE 9402250037 940225 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON AIMS TO RATCHET UP PRESSURE ON JAPAN OVER TRADE A MIDMARCH DECISION IS DUE ON WHETHER TO LEVY SANCTIONS ON JAPAN FOR FAILING TO HIT IMPORT TARGETS FOR SEMICONDUCTORS OFFICIALS SEEK ANOTHER VIVID EXAMPLE OF JAPANESE PROTECTIONISM LIKE THE CELLULARPHONE CASE ON WHICH TO FOCUS MORE PUBLIC ATTENTION ONE POSSIBILITY IS COMPUTERS WHERE THE US HAS A GROWING SHARE OF THE PRIVATE MARKET AND A DECLINING PORTION OF THE GOVERNMENT ONE THE ADMINISTRATION SEEKS TO CALIBRATE ITS PRESSURE CAMPAIGN IT LAST WEEK DELAYED RENEWING THE TOUGH SUPER 301 TRADE PROVISION WHICH WOULD TARGET JAPAN FOR POTENTIAL TRADE RETALIATION FOR FEAR IT WOULD SEEM TO BE SQUEEZING TOO HARD TOO FAST BUT A RESTIVE CONGRESS WON'T ALLOW MUCH BACKSLIDING GEPHARDT AND ROCKEFELLER INTRODUCE LEGISLATION REQUIRING OBJECTIVE CRITERIA FOR PRYING OPEN JAPAN'S MARKETS CHINA PREPARES TO SERVE UP SOME HUMANRIGHTS CONCESSIONS HOPING TO MAKE IT EASIER FOR CLINTON TO RENEW ITS TRADE STATUS IN JUNE CHINA IS LIKELY TO USE CHRISTOPHER'S VISIT NEXT MONTH TO ANNOUNCE MEDICAL PAROLES FOR SOME SERIOUSLY ILL JAILED DISSIDENTS VISAS FOR OTHER DISSIDENTS AND FAMILY MEMBERS AND AGREEMENT TO ALLOW LONGDELAYED INSPECTIONS TO MONITOR THE USE OF PRISON LABOR ON GOODS DESTINED FOR THE US BUT WITH THE US RELUCTANT TO PRESS TOO HARD WHILE IT ENGAGES IN TRADE SKIRMISHES WITH JAPAN OTHERS WARN THE CHINESE GESTURES MAY FALL SHORT SEN MOYNIHAN PRIVATELY URGES THE ADMINISTRATION TO PUSH THE CHINESE TO MEET WITH THE EXILED DALAI LAMA RED CROSS OFFICIALS SAY IT ISN'T LIKELY THEY WILL REACH AN AGREEMENT BY JUNE ON INSPECTIONS OF CHINESE PRISONS REPUBLICANS LASH THE ADMINISTRATION OVER THE BELLTCI COLLAPSE DOLE BLASTS GORE FOR BACKING THE 1992 CABLE BILL AND PREDICTS FCC CHAIRMAN HUNDT'S POLICIES WILL STIFLE NEW TELECOMMUNICATIONS SERVICES THE ADMINISTRATION TRIES A POPULIST RESPONSE GORE AIDE GREG SIMON INSISTS THAT THE GOAL IS TO PROTECT THE PUBLIC YOU DO NOT NEED UNFAIR PRICING TO BUILD THE INFORMATION SUPERHIGHWAY THE DEAL'S COLLAPSE ADDS TO THE UNCERTAINTIES AS CONGRESS MOVES NEW TELECOMMUNICATIONS LEGISLATION ENERGY AND COMMERCE CHAIRMAN DINGELL SAYS IT WON'T SLOW THE PROCESS AND GOP REP OXLEY SAYS IT MAY EVEN ACCELERATE ACTION BUT WHILE OXLEY CALLS THE FCC ACTION THE NAIL IN THE COFFIN OF THE DEAL OTHER LAWMAKERS OF BOTH PARTIES CONCLUDE THAT NEGOTIATIONS HAD ALREADY SOURED OVER PRICE GORE AIDES SAY HE WASN'T ALERTED ABOUT THE IMPENDING COLLAPSE OF THE DEAL OR THE COMPANIES' ATTACK ON THE FCC THE AD SHOWS A GRAYHAIRED DOCTOR TREATING A SICK CHILD WITH A WORRIED MOTHER HOVERING NEARBY THE CAPTION KEEP POLITICS OUT OF THIS PICTURE THE CHRISTIAN COALITION'S FULLPAGE ATTACK ON CLINTON'S HEALTHCARE PLAN NO THE AMA'S NEARLY IDENTICAL AD AGAINST TRUMAN'S HEALTH PROPOSAL 45 YEARS AGO IT WORKED FOR THEM DIDN'T IT SAYS RALPH REED OF THE COALITION CONSERVATIVE REP ARMEY SPARS WITH GOP MODERATES OVER AN AMENDMENT HE SPONSORS CHAMPIONING HOME SCHOOLERS THE AMENDMENT HAD TO BE WITHDRAWN AT THE LAST MINUTE AND REDRAFTED TO CORRECT MISTAKES ARMEY BLAMES THE FOULUP ON BAD ADVICE FROM LAWYERS REPRESENTING CATHOLIC SCHOOLS BUT CITING REAGAN'S 11TH COMMANDMENT NOT TO CRITICIZE FELLOW REPUBLICANS ADDS I SHOULD HOPE EVERYONE IN OUR PARTY WOULD FOLLOW IT AS WELL AS I DO BUDGET BATTLE IF WE HAD THE BENEFIT OF THE BALANCEDBUDGET AMENDMENT THE US MIGHT NOT HAVE BEEN ABLE TO WIN WORLD WAR II SUGGESTS FORMER DEFENSE SECRETARY AND CIA CHIEF JAMES SCHLESINGER HIS RATIONALE WITHOUT THE CAPITALSHIPBUILDING PROGRAM PRIOR TO THE WAR THE US WOULDN'T HAVE HAD THE NAVAL MUSCLE NEEDED TO WIN THE BATTLES OF MIDWAY AND CORAL SEA GAS ATTACK BRADLEY COLLECTS 35 SENATE SIGNATURES URGING EPA ADMINISTRATOR BROWNER TO DROP A RULE VIRTUALLY MANDATING A 30 MARKET SHARE FOR GASOLINE BLENDED WITH ETHANOL WHICH IS MADE MAINLY BY POLITICALLY ACTIVE INCREASINGLY CLINTONFRIENDLY ARCHERDANIELSMIDLAND CO THE SENATORS CHARGE THE RULE WOULD CREATE CHAOS IN THE MARKETPLACE COST TOO MUCH AND POSSIBLY HARM THE ENVIRONMENT WIDE GAPS REMAIN OVER CAMPAIGNFINANCE REFORM REPUBLICAN SENS DURENBERGER MCCAIN CHAFEE COHEN AND JEFFORDS WHOSE VOTES ARE NEEDED TO BEAT A GOP FILIBUSTER ON THE FLOOR INSIST ON CURBING POLITICAL ACTION COMMITTEES BUT PACDEPENDENT HOUSE DEMOCRATS DIG IN BEHIND THE CURRENT 5000PERELECTION CONTRIBUTION LIMIT REPUBLICANS WANT ANY TAXPAYER FINANCING OFFSET IN THE BUDGET BUT HOUSE DEMOCRATS STRUGGLE TO IDENTIFY A REVENUE SOURCE THEY MAY TRY TO REVIVE THE IDEA OF USING MONEY RAISED FROM ENDING A TAX DEDUCTION FOR LOBBYISTS THOUGH THOSE REVENUES HAVE ALREADY BEEN CLAIMED FOR DEFICIT REDUCTION DEMOCRATS REJECT CLOSING THE BUNDLING LOOPHOLE BENEFITING EMILY'S LIST WHICH BACKS DEMOCRATIC WOMEN CANDIDATES WHO FAVOR ABORTION RIGHTS MINOR MEMOS ACCUSED SPY ALDRICH AMES DIDN'T SPEND ALL HIS MONEY ON HOUSES AND JAGUARS FEDERAL RECORDS INDICATE HE GAVE 5000 TO THE DEMOCRATIC NATIONAL COMMITTEE IN 1991 AND 1992 SEN KENNEDY ATTENDING A BIPARTISAN WHITE HOUSE HEALTHCARE DINNER ON THE DAY HE TURNED 62 OBSERVES I'VE ALWAYS WANTED TO SPEND MY BIRTHDAY WITH BOB DOLE 9402250036 940225 LEISURE & ARTS ARCHITECTURE A ROAD MAP TO THE ARCHITECTURE OF AMERICA BY EVE M KAHN BLISSFIELD MICH ONLY ONE BUILDING IN THIS SERENE MIDSIZE TOWN IN FARM COUNTRY A FEW MILES FROM THE OHIO STATE LINE HAS BEEN ANOINTED THAT IS DEEMED TO POSSESS ENOUGH ARCHITECTURAL INTENSITY TO BE LISTED IN BUILDINGS OF THE UNITED STATES OXFORD UNIVERSITY PRESS JUST STARTED PUBLISHING THIS DEFINITIVE STUDY STATE BY STATE PLUS TERRITORIES BY THE 2010S THE FULL SET WILL MEASURE EIGHT FEET LONG AND CONTAIN NEARLY 100000 DESCRIPTIONS OF SIGNIFICANT STRUCTURES THAT WILL PINPOINT EXACTLY WHERE AND HOW AMERICAN ARCHITECTURE SINGS BLISSFIELD'S HONOREE IS A GREEK REVIVAL MANSION CIRCA 1851 SIGNIFICANT BECAUSE SO MANY EARLY ENTREPRENEURS IN SOUTHCENTRAL MICHIGAN FAVORED THAT STYLE AND SO FEW UNSPOILED EXAMPLES SURVIVE THIS ONE ENDURED BECAUSE IT EVOLVED INTO A RESTAURANT LOCATED ON A HIGHWAY THAT CUTS LENAWEE COUNTY IN TWO I TOOK THAT HIGHWAY ACROSS THE COUNTY TESTING THE OBSERVATIONS AND TRAVELWORTHINESS OF BUS AS THE OXFORD SERIES IS KNOWN IN THE FIELD I CHOSE LENAWEE BECAUSE OF ALL PLACES YET COVERED IN BUS IN ADDITION TO MICHIGAN THERE'S ALASKA IOWA AND THE DISTRICT OF COLUMBIA IT SEEMED ESPECIALLY UNPRETENTIOUS YET REPRESENTATIVE OF AMERICAN URBANISM THE OWNER OF THE RESTAURANT EMERGED AS I STOOD IN HIS PARKING LOT TAKING NOTES ABOUT DORIC COLUMNS WHEN I INTRODUCED MYSELF AND SHOWED HIM THE BOOK'S MERE 19 LISTINGS FOR ALL OF LENAWEE HE WAS UNDERSTANDABLY MIFFED ABOUT WHAT HAS BEEN LEFT OUT A ONEROOM 1870S SCHOOLHOUSE MOVED IN THE 1970S TO THE MIDDLE OF THE MODERN HIGH SCHOOL'S LAWN A PLAIN BUT BELOVED BOX OF A LUTHERAN CHURCH A TWOROOM RAILWAY STATION NOW USED AS A TICKET BOOTH FOR CROSSCOUNTY MURDERMYSTERYTRAIN EXCURSIONS AND SO IT WENT I FOLLOWED THE BAREBONES BUT SUFFICIENT BUS MAPS AND DIRECTIONS TO THE HIGHLIGHTS OF LENAWEE AND EVERYWHERE I LONGED TO ADD LISTINGS OF SAY A 1920S CHURCH IN SOFTPINK LOCAL STONE A VICTORIAN MANSION WITH A MYSTERIOUS COVERED STAIR TRAILING DOWN ITS BACK LAWN A COFFEEPOTSHAPED COFFEE STAND BUT NO ONE MAY EVER PRODUCE THE ULTIMATE DOCUMENTATION OF LENAWEE'S ARCHITECTURE A CONSTANTLY UPDATED VIRTUAL REPLICA WITH DATABASES SPILLING CONSTRUCTION DETAILS LIFE STORIES OF PAST AND PRESENT RESIDENTS EVEN THE SENSATIONS OF BREEZES RATTLING DRIED SOYBEAN SHELLS IN THE FIELDS AND YOU HAVE TO ENJOY BUS FOR ITS VERY LIMITATIONS ITS CULLING OF THE LANDSCAPE INTO PERFECT REPRESENTATIVES OF EVERY MATERIAL FORM FUNCTION AND REGION IN PLACE OF THAT COFFEE SHOP FOR INSTANCE THERE'S A FAR GRANDER PICKLEBARRELSHAPED COTTAGE ON MICHIGAN'S UPPER PENINSULA YOU ALSO HAVE TO ADMIRE THE VARIETY OF VIEWPOINTS IN BUS A DIFFERENT SCHOLAR IS WRITING EACH VOLUME FORMAT VARIES SLIGHTLY AND TONE HUGELY DAVID GEBHARD AND GERALD MANSHEIM PLACE IOWA IN A STYLISTIC CONTINUUM AN 1881 ITALIANATE VILLA WAS BUILT VERY LATE IN FASHION A CORNICE ON A 1939 STREAMLINE MODERNE CUBE PROVES THIS WAS ALSO THE MOMENT WHEN THE REGENCY REVIVAL WAS STRONG PAMELA SCOTT AND ANTOINETTE J LEE SPEND NEEDED PAGES ON EACH WASHINGTON ICON AND ALISON K HOAGLAND TELLS BRIEFLY BUT VIVIDLY OF ALASKAN EXPERIENCES FEELING LIKE AN INTRUDER IN A RUSSIAN ORTHODOX MONK'S CELL EXHILARATED IN A NATIVE HUT WITH WHALEBONE WALLS AND A GRASS ROOF AND KATHRYN BISHOP ECKERT PACKS THE MICHIGAN TEXT WITH SUNNY COMMENTARY USE OF A CONCRETE SIMULATED WOOD CALLED PERMALOG IS THANKFULLY CONFINED TO MICHIGAN A 1959 PEDESTRIAN MALL RINGED BY HIGHWAYS HAS ENSURED THAT THE CITY HAS BEEN RESTORED TO THE PEOPLE THE SOCIETY OF ARCHITECTURAL HISTORIANS DREAMED UP BUS MODELING IT AFTER THE BUILDINGS OF ENGLAND A 46VOLUME TRIBUTE TO A BELOVED ADOPTED COUNTRY WRITTEN BY GERMANBORN SIR NIKOLAUS PEVSNER DURING THREE DECADES AFTER WORLD WAR II LIKE BUS PEVSNER'S WORK IS NEVER OBJECTIVE A PURE NOBLE AND GENEROUS INTERIOR AND A DIRECTNESS OF FEELING AND EXPRESSION UNPRECEDENTED IN ENGLAND ARE TYPICAL PEVSNERISMS HE CAN SHOW DISTASTE TOO BUT ALWAYS GENTLY ONE TAKES A PERVERSE PLEASURE IN IT HE WRITES OF AN AWKWARD VICTORIAN CHURCH AND OF A MODERNIST ONE HE OFFERS APOLOGIES FROM THE AUTHOR OF THIS VOLUME WHO CANNOT APPRECIATE FOR WORSHIP SO AGGRESSIVE A BUILDING AND LIKE BUS THE BUILDINGS OF ENGLAND IS OMNIVOROUS EVEN THOUGH PEVSNER WHO DIED IN 1983 WROTE MOSTLY ABOUT HEROIC RELIGIOUS BUILDINGS OTHER SCHOLARS HAVE WIDENED HIS WORK WITH PAGES ON VERNACULAR BUILDINGS SUCH AS BARNS AND PUMPING STATIONS FOR DRAINING THE FENS YOU COULD ARGUE THEN THAT THE WORLD'S COMPREHENSIVE ARCHITECTURAL SUMMARIES ARE BECOMING A LITTLE TOO TOLERANT ALLEMBRACING EVEN COMPLACENT BASICALLY EXTENDED PATS ON THE BACK FOR A NATION'S ARCHITECTURE BUT IN A TIME WHEN ACADEMICS ARE ABUZZ WITH BOOKS TITLED THE END OF ARCHITECTURE AND LIKELY TO DISMISS THE BULK OF POSTWORLDWARII CONSTRUCTION AS THE SCAMSCAPES OF EXOPOLIS BUS COMES AS A WELCOME DOSE OF OPTIMISM THE CUMULATIVE EFFECT OF THESE VOLUMES WILL BE INCREDIBLY HEARTENING SCHOLARLY PROOF OF HOW MUCH THERE THERE ALREADY IS 9402250035 940225 BUSINESS BRIEF MCI COMMUNICATIONS CORP AGREEMENT TO SERVE INSURERS IS EXPANDED TO 14 BILLION MCI COMMUNICATIONS CORP WASHINGTON SAID IT SIGNED A DEFINITIVE AGREEMENT VALUED AT 14 BILLION OVER SEVEN YEARS WITH INSURANCE VALUE ADDED NETWORK SERVICES AN INSURANCEINDUSTRY COMMUNICATIONS NETWORK THE AGREEMENT EXPANDS A PRELIMINARY AGREEMENT VALUED AT 1 BILLION A NETWORK SPOKESMAN SAID TELECOMMUNICATIONS CONCERNS AMERICAN TELEPHONE & TELEGRAPH CO AND SPRINT CORP ALSO VIED FOR THE CONTRACT THE NETWORK HAS MADE MCI THE PRIMARY TELECOMMUNICATIONS PROVIDER FOR ITS 400 MEMBER COMPANIES IN THE INSURANCE INDUSTRY THE MEMBERS ACCOUNT FOR 60 OF THE INDUSTRY'S 15 BILLION IN ANNUAL TELECOMMUNICATIONS EXPENDITURES MCI SAID THE NETWORK FORMED IN 1983 COMBINES THE VOLUME OF ITS MEMBERS' USE OF VOICE AND DATA COMMUNICATIONS FOR VALUEADDED PURCHASING IT SERVES 56000 DATANETWORK USERS 9402250034 940225 CORRECTIONS & AMPLIFICATIONS THE NEW YORK STOCK EXCHANGE'S MIDFEBRUARY REPORT OF SHORT INTEREST FOR INTERNATIONAL FLAVORS & FRAGRANCES INC SHOWED A SHORT INTEREST OF 1813072 SHARES THE MONTHEARLIER FIGURE OF 740294 SHARES SHOWN IN A FEB 23 TABLE DOESN'T REFLECT A SUBSEQUENT 3FOR1 STOCK SPLIT 9402250033 940225 BUSINESS BRIEF SUN CO FIRM TO BUY PIPELINE STAKE AND REFINERY FROM CHEVRON SUN CO PHILADELPHIA SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A LARGE CHEVRON CORP OIL REFINERY AND A ONETHIRD INTEREST IN A PIPELINE CONNECTING THE PLANT TO NEW YORK FOR 170 MILLION SUN SAID THE 177000BARRELADAY REFINERY IS LOCATED NEXT TO ITS OWN PHILADELPHIA PLANT AND THE COMPANY WILL IMPROVE EFFICIENCIES BY OPERATING THEM AS ONE UNIT IN SAN FRANCISCO A CHEVRON SPOKESMAN DIDN'T DISPUTE THE 170 MILLION PURCHASE PRICE CITED BY SUN BUT SAID WE THINK IT'S PREMATURE TO DISCUSS A PURCHASE PRICE AT THIS TIME AS PART OF A RESTRUCTURING OF ITS REFINING BUSINESS CHEVRON LAST MAY SAID THAT IT WOULD TRY TO SELL THE PLANT AS WELL AS A PORT ARTHUR TEXAS REFINERY THE COMPANY SPOKESMAN SAID CHEVRON EXPECTS TO MAKE AN ANNOUNCEMENT ABOUT A POSSIBLE BUYER FOR THE PORT ARTHUR PLANT IN A FEW WEEKS 9402250032 940225 BUSINESS BRIEF HICKS MUSE & CO ATLANTA AFFILIATE IS ACQUIRING RADIO STATIONS IN CAROLINAS HICKS MUSE & CO SAID THAT HMW COMMUNICATIONS INC ITS ATLANTABASED AFFILIATE HAS ACQUIRED OR SIGNED DEFINITIVE AGREEMENTS TO ACQUIRE 10 RADIO STATIONS IN NORTH CAROLINA AND SOUTH CAROLINA THE PRIVATE INVESTMENT CONCERN BASED IN DALLAS SAID THAT HMW ACQUIRED SIX STATIONS FROM CLOSELY HELD VOYAGERS COMMUNICATIONS RALEIGHDURHAM NC FOR 265 MILLION THOSE STATIONS ARE WRDUFM IN RALEIGHDURHAM NC WLWZFM IN GREENVILLE/SPARTANBURG SC WMAGFM AND WMFRAM IN GREENSBORO/WINSTONSALEM NC AND WNOKFM AND WOICAM IN COLUMBIA SC IN ADDITION HICKS MUSE SAID THAT HMW HAS SIGNED DEFINITIVE AGREEMENTS WITH OTHER PARTIES TO ACQUIRE WTRGFM IN RALEIGHDURHAM NC WJMZFM IN GREENVILLE/SPARTANBURG SC AND WWWBFM AND WGLDAM IN GREENSBORO/WINSTONSALEM NC TERMS OF THOSE ACQUISITIONS WEREN'T DISCLOSED 9402250031 940225 INTERNATIONAL BRIEF BASS PLC VENTURE WITH GROLSCH TO SELL LAGER BRAND IN UK IRELAND BASS PLC LONDON ANNOUNCED PLANS TO SET UP A JOINT VENTURE WITH GROLSCH NV OF THE NETHERLANDS TO MARKET THE GROLSCH LAGER BRAND IN THE UK AND IRELAND GROLSCH IS A WELLESTABLISHED HIGHQUALITY BRAND THAT GIVES US IMMEDIATE ACCESS TO SIGNIFICANT VOLUMES OF THE IMPORTANT PREMIUM LAGER SECTOR SAID BASS BREWERS LTD'S CHAIRMAN TONY PORTNO BASS BREWERS WILL TAKE A 49 STAKE IN THE VENTURE UNDER TERMS OF THE PACT AND GROLSCH WILL TAKE THE REMAINING 51 9402250030 940225 BUSINESS BRIEF MIRAGE RESORTS INC COMPANY CANADIAN PARTNER TO BUILD RESORT COMPLEX MIRAGE RESORTS INC SAID IT IS A 49 PARTNER IN A PROPOSAL TO DEVELOP A HOTEL CASINO CONVENTION CENTER AND CRUISESHIP TERMINAL COMPLEX ON A WATERFRONT PROPERTY IN VANCOUVER BRITISH COLUMBIA THE LAS VEGAS CASINO OPERATOR AND ITS CANADIAN PARTNER CLOSELY HELD DEVELOPMENT COMPANY VLC PROPERTIES LTD HAVE BEEN GIVEN THE GOAHEAD BY VANCOUVER PORT CORP TO NEGOTIATE A FINANCIAL ARRANGEMENT AND LEASE FOR THE 750 MILLION CANADIAN DOLLAR US5556 MILLION DEVELOPMENT PROPOSED FOR 48 ACRES OF PRIME WATERFRONT LAND IN DOWNTOWN VANCOUVER HOWEVER THE PROJECT DEPENDS ON THE OUTCOME OF A PROMISED OVERHAUL OF BRITISH COLUMBIA'S GAMING LAWS WHICH CURRENTLY DON'T ALLOW OPERATION OF RESORTTYPE CASINOS SUCH AS THE ONE PROPOSED BY THE VLCMIRAGE GROUP MIRAGE VICEPRESIDENT OF PUBLIC RELATIONS ALLAN FELDMAN SAID THAT IN ITS PROPOSAL TO VANCOUVER PORT THE GROUP FORECAST ANNUAL CASINO REVENUE OF ABOUT C350 MILLION A YEAR 9402250029 940225 BUSINESS BRIEF TCH CORP ANTITRUST CHALLENGE TO SALE OF KMART'S PAYLESS SETTLED A FEDERAL ANTITRUST CHALLENGE TO THE PROPOSED SALE OF THE PAYLESS DRUGSTORE CHAIN WAS SETTLED WHEN THE ACQUIRING TCH CORP AGREED TO DIVEST ITSELF OF STORES IN FIVE WESTERN US AREAS KMART CORP OF TROY MICH AGREED IN DECEMBER TO SELL ITS PAYLESS DRUGSTORE UNIT TO TCH A COMPANY OWNED BY INVESTOR LEONARD GREEN'S MERCHANTBANKING FIRM THE FEDERAL TRADE COMMISSION CHALLENGED THE DEAL ALLEGING IT WOULD VIOLATE ANTITRUST LAWS AS ORIGINALLY STRUCTURED THE TRANSACTION WOULD HAVE ELIMINATED DRUGSTORE COMPETITION IN THE FIVE AREAS THE FTC SAID LOS ANGELESBASED TCH CURRENTLY OWNS THE THRIFTY AND BIMART STORE CHAIN WHICH OPERATE IN AREAS WHERE PAYLESS ALSO DOES BUSINESS IN PART THE PROPOSED SETTLEMENT WOULD REQUIRE THE TCH TO DIVEST WITHIN ONE YEAR THE PHARMACY BUSINESS EITHER IN THE PAYLESS OR THE THRIFTY OR BIMART STORES IT OWNS OR WILL OWN IN BISHOP MT SHASTA AND TAFT CALIF FLORENCE ORE AND ELLENSBURG WASH AN FTC STATEMENT SAID THE COMMISSION WILL DECIDE WHETHER TO MAKE THE PROPOSED SETTLEMENT FINAL AFTER A 60DAY COMMENT PERIOD 9402250028 940225 WHAT'S NEWS WORLDWIDE RUSSIA'S YELTSIN VEERED AWAY FROM HIS FREEMARKET REFORMS THE RUSSIAN PRESIDENT IN A STATEOFTHENATION ADDRESS TO PARLIAMENT MADE A CLEAR TURN AWAY FROM ECONOMIC REFORM DECLARING THAT A STRONG STATE APPARATUS IS THE ONLY MEANS TO END THE COUNTRY'S ECONOMIC AND SOCIAL CRISES WHILE PLEDGING ALLEGIANCE TO THE REFORMS BEGUN IN 1992 YELTSIN SAID IT IS ESSENTIAL TO CLOSE A WIDENING GAP BETWEEN RICH AND POOR HIS VISION OF A STRONG GOVERNMENT CONTRADICTS THE ATTEMPTS BY REFORMERS TO DIMINISH THE STATE STRUCTURE THE SPEECH WAS HELPFUL IN DEFUSING TENSIONS BETWEEN YELTSIN AND PARLIAMENT'S LOWER HOUSE WHICH IS DOMINATED BY COMMUNISTS AND NATIONALISTS BOSNIAN PEACE TALKS WILL SHIFT TO WASHINGTON FROM GENEVA THIS WEEKEND WITH THE AIM OF CREATING A TWOREPUBLIC COUNTRYONE SERB AND THE OTHER A CROATMUSLIM MIXTURE THE STATE DEPARTMENT SAID BOSNIA'S PRIME MINISTER SILAJDZIC WELCOMED THE EXPANDED US ROLE IN SEEKING A PEACE SETTLEMENT CROATMUSLIM FIGHTING RAGED IN PARTS OF CENTRAL BOSNIA BUT BOTH SIDES SAID THEY WOULD HONOR A TRUCE THAT IS SCHEDULED TO BEGIN TODAY SEPARATELY THE UN SAID AT LEAST EIGHT SUSPECTED SERB WEAPONS SITES NEAR SARAJEVO STILL HAVEN'T BEEN INSPECTED A CIA TEAM RETURNED FROM MOSCOW EMPTY HANDED AFTER SEEKING RUSSIA'S COOPERATION IN AN UNFOLDING SPY SCANDAL A TOP US OFFICIAL SAID PRESIDENT CLINTON IS TO MEET TODAY WITH LAWMAKERS TO QUELL THEIR CALLS FOR A SUSPENSION OF AID TO RUSSIA CLINTON TRAVELED TO CONNECTICUT TO STRESS THE BENEFITS OF HIS HEALTH PROPOSALS FOR THE ELDERLY HE SHRUGGED OFF MOUNTING CONGRESSIONAL CRITICISM OF TWO MAJOR ASPECTS OF HIS PLAN REGIONAL ALLIANCES TO BUY INSURANCE AND A REQUIREMENT FOR EMPLOYERS TO PAY UP TO 80 OF THEIR WORKERS' PREMIUMS THE ROSE LAW FIRM MAY HAVE ACTED IMPROPERLY IN NOT DISCLOSING ITS DEALINGS WITH A FAILED ARKANSAS THRIFT THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY SUGGESTED THE US WAS ACCUSED OF DELIBERATELY CONTAMINATING HUNDREDS OF PEOPLE WITH RADIATION IN 1954 BY EXPLODING A HYDROGEN BOMB NEAR THE MARSHALL ISLANDS IN THE PACIFIC PAPERS PRESENTED AT A CONGRESSIONAL HEARING SHOWED THE GOVERNMENT KNEW 12 HOURS IN ADVANCE OF SHIFTING WINDS THAT PUT ISLANDERS AT RISK BUT PROCEEDED WITH THE BLAST SURGEON GENERAL ELDERS LABELED SMOKING AN ADOLESCENT ADDICTION AND ACCUSED THE TOBACCO INDUSTRY OF TRYING TO PERSUADE TEENAGERS THAT CIGARETTES WILL MAKE THEM SOPHISTICATED AND SUCCESSFUL HER REPORT ON SMOKING CONCLUDED THAT IF TEENS CAN REMAIN NONSMOKERS UNTIL HIGH SCHOOL GRADUATION MOST WILL STAY THAT WAY FOREVER BLACK US SOLDIERS HAVE BEEN TARGETED BY A HATE CAMPAIGN AT THEIR BASE IN GERMANY THE ARMY SAID THE SOLDIERS STATIONED NEAR FRANKFURT HAVE RECEIVED PHONE THREATS AND HAVE REPORTED SLASHED TIRES AND RACIST GRAFFITI FOR 18 MONTHS ACCORDING TO US OFFICIALS THE HARASSMENT IS BELIEVED TO BE THE WORK OF UNIDENTIFIED AMERICANS THE NATIONAL RIFLE ASSOCIATION SAID IT IS MOUNTING COURT CHALLENGES TO THE BRADY LAW HOPING TO BLOCK ENFORCEMENT OF ITS FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES THE LAW IS TO TAKE EFFECT MONDAY NICARAGUA'S GOVERNMENT REACHED A PEACE AGREEMENT WITH THE LAST OF THE COUNTRY'S CONTRA REBELS THE ACCORD WHICH ENDS DECADES OF GUERRILLA WARFARE IN NICARAGUA CALLS FOR THE REBELS TO BE INCORPORATED INTO THE POLICE FORCE IN EXCHANGE FOR DISARMING OVER THE NEXT 45 DAYS OFFICIALS SAID THE JUSTICE DEPARTMENT IS CONSIDERING A TEMPORARY WAIVER OF A RULE BARRING PEOPLE WITH THE AIDS VIRUS FROM ENTERING THE US OFFICIALS AND GAYRIGHTS ACTIVISTS SAID THE WAIVER WOULD ALLOW HIVINFECTED FOREIGNERS TO PARTICIPATE IN THE GAY GAMES IN NEW YORK IN JUNE ETHNIC MINORITY REBELS SIGNED A CEASEFIRE AGREEMENT WITH BURMA'S GOVERNMENT FORMALLY ENDING 32 YEARS OF FIGHTING THE PACT SIGNED BY THE KACHIN REBELS MARKED A BREAKTHROUGH FOR JUNTA WHICH ALSO HAS REACHED ACCORDS WITH SOME OTHER GROUPS DIED DINAH SHORE 76 ENTERTAINER KNOWN FOR HER TV VARIETY SHOW IN THE 1950S IN BEVERLY HILLS CALIF OF CANCER 9402250027 940225 MARKETING & MEDIA BARNEYS REBUTTING RUMORS OF WOES SAYS NET DOUBLED IN A FIVEMONTH PERIOD BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BARNEYS NEW YORK TOOK THE UNUSUAL STEP OF RELEASING EARNINGS AND AN INTERNAL SALES FORECAST REBUTTING INDUSTRY SPECULATION THAT THE TRENDSETTING RETAILER IS IN FINANCIAL STRAITS AFTER A PERIOD OF NATIONWIDE EXPANSION BARNEYS WHICH IS OWNED BY THE PRESSMAN FAMILY SAID ITS EARNINGS FOR THE FIVE MONTHS ENDED JAN 2 MORE THAN DOUBLED TO 59 MILLION FROM 28 MILLION A YEAR EARLIER SALES FOR THE PERIOD JUMPED 70 TO 150 MILLION BARNEYS SAID EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR THE PERIOD ROSE 86 TO 16 MILLION THE FIGURES FOR THE FIVE MONTHS INCLUDE ABOUT FOUR MONTHS OF RESULTS FROM A LARGE STORE OPENED LAST YEAR ON NEW YORK'S MADISON AVENUE BARNEYS SALES FROM STORES OPEN AT LEAST ONE YEAR A KEY RETAILING INDICATOR WERE UP 14 FOR THE FIVEMONTH PERIOD A GAIN OF THE SAME SIZE AS THE SAMESTORE SALES INCREASE FOR THE FULL FISCAL YEAR ENDED JULY 31 1993 BARNEYS SAID IT EXPECTS SAMESTORE SALES FOR THIS FISCAL YEAR ENDING JULY 30 TO SHOW THE SAME GAIN THE WHOLE INDUSTRY WILL BE RELIEVED THE NUMBERS ARE POSITIVE SAID GARY WASSNER PRESIDENT OF HILLDUN CORP A FACTORING COMPANY THAT FINANCES A NUMBER OF YOUNG DESIGNERS THOUGH MUCH SMALLER THAN INDUSTRY GIANTS SUCH AS FEDERATED DEPARTMENT STORES INC BARNEYS IS CLOSELY WATCHED BECAUSE OF ITS EXPANSION INTO UPSCALE RETAILING SITES AND ITS HISTORY OF SUPPORTING AND INTRODUCING FASHION DESIGNERS WHO HAVE BECOME STARS BARNEYS HAS GROWN QUICKLY IN RECENT YEARS TO OPERATE 17 US STORES ITS THREE LATEST HIGHPROFILE STORES IN CHICAGO NEW YORK AND BEVERLY HILLS CALIF OPENING MARCH 5 WERE CREATED WITH THE HELP OF EQUITY PARTNER ISETAN CO A JAPANESE CONGLOMERATE THE PRESSMAN FAMILY LINKED UP WITH IN 1988 AFTER BARNEYS LAST FALL OPENED ITS MADISON AVENUE STORE WHOSE TOTAL COST THE PRESSMANS SAID YESTERDAY WAS 185 MILLION THE FAMILY WAS DOGGED BY REPORTS THAT IT WAS SLOW IN PAYING SEVERAL OF ITS VENDORS AND THAT IT WAS LESS THAN FORTHCOMING IN SUPPLYING FACTORS AND RETAIL CREDIT EXECUTIVES WITH FINANCIAL INFORMATION ROBERT PRESSMAN COPRESIDENT OF BARNEYS SAID THE COMPANY WAS MAKING FINANCIAL INFORMATION PUBLIC YESTERDAY FOR THE FIRST TIME BECAUSE WE REALIZED WE NEED TO COMMUNICATE MORE AND WE HAVE REACHED A SIZE WHERE WE ARE VERY PUBLIC RIGHT NOW BARNEYS CHALKED UP ITS EARLIER STRAINED RELATIONSHIP WITH SOME SUPPLIERS BARNEYS HAS 7400 VENDORS TO INTERNAL PROBLEMS CHANGES IN HOW WE DO OUR BUSINESS AND THE COMMUNICATION OF THAT TO OUR VENDORS WEREN'T ADEQUATE SAID CHARLES BUNSTINE II BARNEYS CHIEF OPERATING OFFICER WE HAVE WORKED TO FIX IT BARNEYS SAID ONLY A SMALL NUMBER OF VERY VOCAL VENDORS WERE AFFECTED BY LATE PAYMENTS HILLDUN WAS OWED MORE THAN 350000 FOR GOODS SHIPPED TO BARNEYS IN THE SECOND HALF OF LAST YEAR AND HAS SINCE BEEN PAID IN FULL MR WASSNER SAID BUT GENE PRESSMAN THE OTHER BARNEYS COPRESIDENT IS STILL IRKED BY REPORTS THAT HAVE LABELED BARNEYS AS DIFFICULT TO WORK WITH AND A COMPANY THAT TAKES ADVANTAGE OF SMALLER DESIGNERS WE PROBABLY DIDN'T DO A GREAT JOB OF COMMUNICATING HE SAID BUT WE ARE ONE OF THE ONLY FRIENDS YOUNG DESIGNERS HAVE LEFT 9402250026 940225 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE AND TIMOTHY K SMITH THE TELEVISION EVENT OF THE YEAR TURNED OUT TO BE A SEMIOTIC SMORGASBORD EQUAL PARTS COYNESS CRASSNESS AND COMMERCE NANCY'S PICTURE MADE IT TO THE SCREEN FIRST IN A CAMPBELL'S SOUP ADVERTISEMENT DOING VIOLENCE TO A HOCKEY PLAYER THE OLYMPIC BROADCASTERS THEMSELVES PRETENDED BRAVELY THAT THEY WERE COVERING JUST ANOTHER OLYMPIC FIGURESKATING COMPETITION THE WORD GILLOOLY NEVER PASSED THEIR LIPS BUT IN BETWEEN THE DECOROUS CBS OLYMPIC SEGMENTS CBS ADVERTISEMENTS PROMOTED THE CBS LATE NEWS WITH THE MESSAGE FACEOFF ON THE ICE NANCY TONYA THE JUDGES THE DRAMA COMING UP AT 11 TONYA SKATED TO MUSIC FROM MUCH ADO ABOUT NOTHING WHEW COVERAGE OF THE ACTUAL ICE SKATING CONTINUED TO BE REWARDING TELEVISION SCOTT HAMILTON TOOK CARE TO EXPLAIN THE TRIPLE LUTZ DEMONSTRATING THE MOVE HIMSELF AND THE CBS CREW DID WHAT THEY COULD TO ENSURE THAT SPEED SKATER BONNIE BLAIR'S OLYMPIAN ACHIEVEMENT A FIFTH GOLD MEDAL GOT THE NOTICE IT DESERVED STILL MS BLAIR MAY HAVE FELT A BIT THE WAY MIKHAIL GORBACHEV DID WHEN HE AGREED TO SCRAP SHORTRANGE NUCLEAR WEAPONS JUST AS CLARENCE THOMAS'S CONFIRMATION HEARING WAS GETTING UNDER WAY PERHAPS THE FUNNIEST PICTURE CBS HAS AIRED DURING THE WINTER GAMES WAS ONE OF A SECURITY GUARD AT THE HAMAR ICE RINK SCRUTINIZING MS HARDING'S IDENTIFICATION CARD HAVEN'T I SEEN YOU SOMEWHERE BEFORE GREG GUMBEL BROUGHT VIEWERS THE NEWS THAT WHEN GERMANY'S MARKUS WASMEIER WON HIS SECOND GOLD MEDAL OF THE GAMES HIS SPONSOR A BREWER RESPONDED BY AWARDING HIM A FREE SUPPLY OF BEER FOR LIFE CAN'T A BIG POWERFUL NETWORK GET ITS SPEEDSKATING ANNOUNCER DICK STOCKTON TO STOP CALLING MS BLAIR AMERICA'S SWEETHEART MAYBE LAURENCE CUDDLES TISCH DOESN'T CARE TEAM CBS'S MIKE EMRICK IS AS CARELESS WITH WORDS AS TEAM USA HAS BEEN WITH THE PUCK THE FINNS WHO BEAT THE US HOCKEY TEAM ACHIEVED VICTORY WITHOUT WHIMPER HE DECLARED HE ADDED LIFE IS TIMING HOCKEY IS LIFE WE THOUGHT LIFE WAS A FOUNTAIN THE FIRST NIGHT OF THE TONYA HARDINGNANCY KERRIGAN SKATEOFF GAVE CBS THE HIGHESTRATED NIGHT OF ANY OLYMPIC GAMES EVER THE WEDNESDAY NIGHT COVERAGE DREW 485 OF THE NATION'S 942 MILLION TV HOMES AN ESTIMATED 1267 MILLION PEOPLE ACCORDING TO AC NIELSEN CO THAT MAKES IT THE FOURTHMOSTWATCHED TELEVISION BROADCAST EVER NO 1 WAS THE 1994 SUPER BOWL WHICH DREW 1348 MILLION VIEWERS ABC HAD JUST 87 OF TV HOMES AND NBC HAD 62 9402250025 940225 BUSINESS BRIEF CANON INC NET FOR YEAR COULD BE HURT BY DROP IN YENDOLLAR RATE CANON INC TOKYO SAID ITS PROFIT FOR THE YEAR ENDING DEC 31 WILL BE HURT IF THE YENDOLLAR EXCHANGE RATE STAYS BELOW 105 YEN TO THE DOLLAR FOR AN EXTENDED PERIOD EARLIER THIS WEEK CANON SAID IT EXPECTS TO POST A 23 BILLION YEN 2179 MILLION CONSOLIDATED NET PROFIT ON SALES OF 19 TRILLION YEN 1803 BILLION FOR THE YEAR ENDING DEC 31 BUT CHAIRMAN RYUZABURO KAKU TOLD DOW JONES ASIAN EQUITIES REPORT THAT MEETING THE FORECAST WILL DEPEND ON CURRENCY FLUCTUATIONS THE YEN STRENGTHENED TO JUST ABOVE 102 YEN TO THE DOLLAR IN MIDFEBRUARY AFTER THE COLLAPSE OF USJAPAN TRADE TALKS IT HAS SINCE RETREATED SOMEWHAT CLOSING AT 10540 ON THURSDAY IN TOKYO IN THE YEAR ENDED LAST DEC 31 CANON SAW ITS SALES FALL 41 TO 1836 TRILLION YEN FROM 1914 TRILLION YEN THE YEAR BEFORE ITS PRETAX PROFIT SLID 41 TO 6003 BILLION YEN FROM 10163 BILLION YEN WHILE NET PROFIT FELL TO 211 BILLION YEN FROM 3562 BILLION YEN A 41 DROP THE COMPANY BLAMED SLUGGISH ECONOMIES IN JAPAN AND EUROPE AND THE HIGH YEN WHICH MAKES CANON'S PRODUCTS MORE EXPENSIVE OVERSEAS AND REDUCES THE YENDENOMINATED VALUE OF INTERNATIONAL SALES 9402250024 940225 NATIONWIDEBANK BILL PICKS UP STEAM AS EVEN OPPONENTS SEE MEASURE PASSING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER YEARS OF OPPOSING PROPOSALS TO LET BANKS OPERATE NATIONWIDE BRANCH NETWORKS KENNETH GUENTHER A FEISTY REPRESENTATIVE OF COMMUNITY BANKS IS RESIGNED TO SEEING CONGRESS APPROVE SUCH A PLAN THIS YEAR THE WORLD HAS CHANGED SINCE 1991 WHEN A NATIONWIDE BANKING BILL FAILED IN CONGRESS EXPLAINS MR GUENTHER THE EXECUTIVE VICE PRESIDENT OF THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA THEN A COMBINATION OF INSURANCE AGENTS CONSUMER GROUPS AND MANY SMALLTOWN BANKERS ALL FEARING A CONCENTRATION OF FINANCIAL POWER HELPED STALL NATIONWIDE BANKING THREE YEARS LATER THEY DON'T SEEM TO HAVE AS MUCH CLOUT EARLIER THIS WEEK THE SENATE BANKING COMMITTEE UNANIMOUSLY CLEARED A NATIONWIDE BANKING BILL SENATORS FROM TEXAS CONNECTICUT AND MASSACHUSETTS STATES THAT WERE DEVASTATED IN THE LAST RECESSION BY BANK FAILURES AND REDUCED LENDING SAID THAT A STRONGER MORE GEOGRAPHICALLY DIVERSE BANKING SYSTEM COULD HAVE BETTER WITHSTOOD THE COLLAPSE OF LOCAL REALESTATE MARKETS AND SOFTENED THE IMPACT OF THE CREDIT CRUNCH ONE OF THESE SENATORS CHRISTOPHER DODD D CONN REMOVED A PERENNIAL OBSTACLE TO NATIONWIDE BANKING EARLIER THIS MONTH HE ANNOUNCED THAT HE NO LONGER WOULD INSIST THAT ANY PLAN TO LET BANKS SET UP NATIONWIDE BRANCH NETWORKS ALSO RESTRICT THEIR ABILITY TO SELL INSURANCE ONCE DODD DROPPED HIS INSURANCE AMENDMENT THIS THING JUST CAME ON US LIKE A TRUCK SAID DEEPAK BHARGAVA THE LEGISLATIVE DIRECTOR OF THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW MAJOR BANKS HAD OPPOSED GIVING UP INSURANCE SALES AS THE PRICE OF WINNING NATIONWIDE BANKING MANY STATES ALREADY HAVE VOTED TO ALLOW OUTOFSTATE AND FOREIGN BANKS TO ENTER THEIR MARKETS IN FACT ONLY 14 STATES STILL LIMIT ENTRY INTO THEIR MARKETS BUT THE 1927 MCFADDEN ACT REQUIRES THAT BANKS IN DIFFERENT STATES BE OPERATED SEPARATELY RATHER THAN AS PART OF A COHERENT BRANCH NETWORK BANKERS NOW ARE MORE CONFIDENT THAN EVER THAT CONGRESS FINALLY WILL PASS A LAW THAT REMOVES THE REMAINING RESTRICTIONS ON THEIR ABILITY TO FORM UNIFIED BRANCH NETWORKS ACROSS STATE LINES EARLIER THIS MONTH A KEY PANEL OF THE HOUSE BANKING COMMITTEE UNANIMOUSLY PASSED AN INTERSTATE BANKING PLAN THAT IS VERY SIMILAR TO THE SENATE BANKING COMMITTEE BILL THE DIFFERENCES BETWEEN THE TWO BILLS ARE LARGELY TECHNICAL AND WILL BE EASY TO RESOLVE SAYS EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION PASSAGE OF THE PLAN WOULD TRANSFORM THE AMERICAN BANKING INDUSTRY SEVERAL LARGE BANKS WOULD SPAN THE COUNTRY WITH BRANCHES IN MAJOR CITIES BANKAMERICA CORP AND NATIONSBANK CORP ARE AMONG THOSE THAT HAVE BEEN WORKING FOR YEARS TO LAY THE FOUNDATION FOR SUCH A MOVE SINCE THE BILLS REQUIRE BANKS TO MOVE INTO NEW STATES THROUGH ACQUISITION A PROVISION DESIGNED TO APPEAL TO SMALL BANKERS BY ENHANCING THE VALUE OF THEIR FRANCHISES FULL INTERSTATE BANKING WOULD SPUR A WAVE OF ACQUISITIONS WE EXPECT THAT A LOT OF WELLCAPITALIZED ORGANIZATIONS WILL BEGIN TO NOTICE THE BENEFITS OF CONSOLIDATION RESULTING IN A HIGHER LEVEL OF MERGER AND ACQUISITION ACTIVITY SAID A RECENT ANALYSIS BY FIRST BOSTON CORP THE FIRM EXPECTS THE PRICES OF ATTRACTIVE MERGER CANDIDATES TO CONTINUE TO RISE NATIONSBANK WHICH HAS LED AN EXTENSIVE LOBBYING CRUSADE FOR INTERSTATE BANKING HAS EMPHASIZED THE ECONOMIES OF ALLOWING BANKS TO CONSOLIDATE UNITS THAT CURRENTLY MUST OPERATE SEPARATELY IN EACH STATE THE CHARLOTTE NC BANKING COMPANY SAYS IT COULD SAVE 50 MILLION A YEAR SIMPLY BY ELIMINATING ADMINISTRATIVE OVERLAP AND REGULATORY DUPLICATION BUT EDWARD FURASH THE MANAGING DIRECTOR OF THE WASHINGTON CONSULTING FIRM OF FURASH & CO SAYS THE BIGGEST BENEFIT FOR BANKS MAY COME FROM THE ABILITY TO PROVIDE A FULL RANGE OF BANKING INVESTMENT AND BUSINESS SERVICES IN METROPOLITAN MARKETS THAT CROSS STATE LINES THE REVENUEINCREASING OPPORTUNITIES HAVE BEEN UNDERESTIMATED HE SAYS BUT HE ANTICIPATES THAT WINNING CUSTOMERS THROUGH INTERSTATE NETWORKS WON'T ALWAYS BE EASY LARGE BANKS WILL HAVE TO COMPETE BOTH WITH LOCAL BANKS THAT HAVE LONG TRADITIONS OF PERSONAL SERVICE AND STRONGER LINKS TO LOCAL BUSINESS AND WITH BOUTIQUE BANKS THAT FOCUS ON SMALL LUCRATIVE MARKETS SUCH AS TRUST SERVICES BANKS WITH EXTENSIVE REGIONAL OR NATIONAL BRANCH NETWORKS ARE GOING TO FACE THE PROBLEM OF HOW CAN I BE BIG AND ACT SMALL' HE SAYS THE NEXT TEST FOR THE HOUSE BILL IS THE FULL HOUSE BANKING COMMITTEE WHICH PLANS TO CONSIDER IT ON MARCH 9 CONSUMER GROUPS HOPE THAT THE COMMITTEE WILL ADD SOME CONSUMER PROTECTIONS THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW THE CONSUMER FEDERATION OF AMERICA AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS ARE TALKING ABOUT TRYING TO ADD PROVISIONS THAT REQUIRE BANKS TO PROVIDE LOWCOST BASIC BANKING SERVICES FOR POOR PEOPLE AND TO CASH WELFARE SOCIAL SECURITY AND OTHER CHECKS ISSUED BY THE GOVERNMENT THE AMERICAN BANKERS ASSOCIATION HAS BEEN PROMOTING THIS LINE THAT ANY AMENDMENTS WILL BE BILLKILLERS SAYS MR BHARGAVA BUT EVEN HE SAYS THAT THE CHANCES OF GETTING SUCH AMENDMENTS INTO THE BILL ARE ONLY ABOUT 40 9402250023 940225 BUSINESS BRIEF LEVI STRAUSS ASSOCIATES INC COMPANY SAYS PROFIT ROSE 5 FOR FISCAL FOURTH QUARTER LEVI STRAUSS ASSOCIATES INC SAID NET INCOME FOR ITS FISCAL FOURTH QUARTER ENDED NOV 28 ROSE 5 TO 1411 MILLION IN THE YEAREARLIER PERIOD THE CLOSELY HELD SAN FRANCISCOBASED MAKER OF BLUE JEANS AND OTHER CLOTHES HAD NET INCOME OF 1343 MILLION SALES FOR THE QUARTER EDGED UP 2 TO 159 BILLION FROM 156 BILLION FOR THE YEAR NET INCOME JUMPED 36 TO 4924 MILLION FROM 3608 MILLION SALES ROSE 6 TO 589 BILLION FROM 557 BILLION LEVI STRAUSS SAID ITS PROFIT JUMPED DESPITE THE MODEST SALES GAINS BECAUSE OF STRONG PRICING IT SAID HOWEVER ITS FISCAL 1994 NET INCOME WOULD BE SIGNIFICANTLY LOWER THAN IN FISCAL 1993 PRIMARILY BECAUSE OF AN EXPECTED 400 MILLION PRETAX CHARGE RELATED TO AN ACCOUNTING CHANGE AND EXPECTED LOWER SALES BECAUSE OF A WEAK GLOBAL ECONOMY 9402250022 940225 BUSINESS BRIEFS ABB ASEA BROWN BOVERI LTD'S ABB COMBUSTION ENGINEERING NUCLEAR OPERATIONS UNIT SIGNED A CONTRACT VALUED AT ABOUT 33 MILLION TO SUPPLY NUCLEAR FUEL AND SERVICES TO THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM RF&P CORP BOUGHT A WAREHOUSE AND DISTRIBUTION CENTER IN RICHMOND VA FOR 43 MILLION FROM NEW ENGLAND MUTUAL LIFE INSURANCE CO OF BOSTON OLIN CORP AND CHAMBERLAIN LTD HAVE FORMED A JOINTVENTURE COMPANY CALLED EARTH CLEANSING INC TO PROVIDE HAZARDOUSWASTE REMEDIAL SERVICES TERMS WEREN'T DISCLOSED THERMO FIBERTEK INC'S FIBERPREP SUBSIDIARY RECEIVED A CONTRACT FOR MORE THAN 6 MILLION TO SUPPLY A WHITEPAPER RECYCLING SYSTEM TO A BOISE CASCADE CORP PULP AND PAPER MILL IN JACKSON ALA 9402250020 940225 THE UNDEAL WHY THE MEGAMERGER COLLAPSED STRONG WILLS AND A BIG CULTURE GAP TCIBELL ATLANTIC BELLYFLOP AFTER DISPUTE OVER PRICE SLOWS RUSH TO WIRE US MR MALONE'S 23 QUESTIONS BY WALL STREET JOURNAL STAFF REPORTERS DENNIS KNEALE JOHNNIE L ROBERTS AND LESLIE CAULEY THE FINAL UNRAVELING OF BELL ATLANTIC CORP'S BREATHTAKING BID TO ACQUIRE CABLE TITAN TELECOMMUNICATIONS INC BEGAN WITH BELL ATLANTIC CHAIRMAN RAYMOND W SMITH POISED IN FRONT OF A TELEVISION SET ON TUESDAY MORNING HE WAS WATCHING CSPAN ONSCREEN THE FEDERAL COMMUNICATIONS COMMISSION HAD JUST IMPOSED A NEW 7 REDUCTION IN CABLE SUBSCRIBER RATES MR SMITH WATCHING FROM BELL ATLANTIC OFFICES IN ARLINGTON VA SHRUGGED LEFT THE ROOM AND SET A NUMBERSCRUNCHING TEAM TO WORK TO COME UP WITH A NEW AND LOWER PRICE TO OFFER FOR TCI THE NEXT DAY IN A LAW OFFICE IN NEW YORK MR SMITH AND THREE LIEUTENANTS FACED OFF AGAINST TCI CHIEF EXECUTIVE JOHN C MALONE AND FOUR OTHER TCI MEN WHO WERE BRACED TO RESIST BY MIDAFTERNOON THE DEAL WAS DEAD AND SO WENT ONE OF THE LARGEST FLAMEOUTS IN THE HISTORY OF CORPORATE MERGERS ULTIMATELY THE SHARPLY DIVERGENT CULTURES OF BELL ATLANTIC AND TCI AND THE STUBBORN CONVICTIONS OF THEIR RESPECTIVE CHIEF EXECUTIVES WORKED AGAINST THE WOULDBE PARTNERS IN TRYING TO FASHION A FINAL DEAL THE GAP PROVED TOO DIFFICULT TO BRIDGE AS THE DEAL GOT SNAGGED ON BELL ATLANTIC'S SLIDING STOCK PRICE AND ON CONCERNS OVER TCI'S FUTURE CASH FLOW IN THE WAKE OF THE COLLAPSE THE INDUSTRY'S HELLBENT RUSH TO WIRE UP AMERICA HAS LOST THE TWO CHAMPIONS THAT WERE READY TO SPEND THE MOST MONEY THE MOST QUICKLY TO SERVE UP NEW INTERACTIVE SERVICES SOME 15 BILLION TO 20 BILLION OVER FIVE YEARS BELL ATLANTIC AND TCI NOW ARE ADRIFT AND SEPARATED DESPITE THEIR AVOWED BELIEF THAT THEY SIMPLY COULDN'T ENTER THE MULTIMEDIA FUTURE WITHOUT ONE ANOTHER'S HELP AND A FUTURE THAT HAD ENVISIONED TITANIC COMBINATIONS OF PHONE COMPANIES AND CABLE GIANTS MAY GET REWRITTEN CREATING WHAT ONE TCI ADVISER CALLS A NEW PARADIGM INSTEAD OF GOBBLING UP ENTIRE COMPANIES RIVALS MAY SEEK SMALLERSCALE PARTNERSHIPS AND TECHNOLOGYSHARING PACTS ALONG THE LINES OF U S WEST INC'S 25 STAKE IN TIME WARNER INC'S ENTERTAINMENT BUSINESS LARGER DEALS WON'T DISAPPEAR ALTOGETHER BUT THE FRENZY TO DO THEM WILL ALMOST CERTAINLY ABATE YET BELL ATLANTIC'S MR SMITH FOR ONE HAD DISMISSED MILDER APPROACHES AS INEFFICIENT AND LESS LIKELY TO WORK WHEN HE MOUNTED THE TCI DEAL FOUR MONTHS AGO PUBLICLY BOTH COMPANIES MANAGED TO BLAME THE FCC AND WASHINGTON BELL ATLANTIC IN POLITE TONES TCI IN BLUNTER BLISTERING CRITICISM FOR THEIR OWN FAILURE TO COMPLETE WHAT COULD HAVE BEEN A FARREACHING DEAL MESSRS SMITH AND MALONE SAY THAT THE PARTING WAS FRIENDLY THAT THEY ADMIRE AND LIKE ONE ANOTHER AND THAT THEY LOOK FORWARD TO PURSUING JOINT VENTURES TOGETHER ALBEIT NOTHING APPROACHING THEIR ORIGINAL HOPES BOTH COMPANIES ARE TRYING TO KEEP THEIR GAZE FOCUSED ON THE FUTURE THE PHONE GIANT WITH ITS PRODIGIOUS 5 BILLION IN ANNUAL CASH FLOW SAYS IT WILL PROCEED WITH PLANS TO DELIVER HOME SHOPPING MOVIES ON DEMAND AND OTHER INTERACTIVE SERVICES TO 12 MILLION HOMES BY THE END OF NEXT YEAR AND TO EIGHT MILLION HOMES BY THE YEAR 2000 IT ALSO WANTS TO PURSUE PROGRAMMING VENTURES WITH TCI'S LIBERTY MEDIA WHICH OWNS STAKES IN CABLE CHANNELS INCLUDING CNN AND TNT IT MAY IT SAYS SEEK SEPARATE PARTNERS IN VARIOUS MARKETS RATHER THAN ONE GRAND ALLY AND AT TCI POTENTIAL NEW DEALS ARE EXPECTED TO BE A PRESSING TOPIC AT A BOARD MEETING TODAY MR MALONE HAS ALREADY INTENSIFIED HIS PURSUIT OF A HOLLYWOOD STUDIO ONE PROSPECT SONY CORP WHICH IS PEDDLING AT LEAST PART OF ITS CASHDRAINING ENTERTAINMENT OPERATIONS WHICH INCLUDE THE COLUMBIA PICTURES AND TRISTAR STUDIOS MR MALONE HAS ALSO APPROACHED THE MCA UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL WE'RE ALREADY ON TO THE NEXT DEAL SAYS ONE TCI MAN IN A CONFERENCE CALL YESTERDAY A BUOYANT MR MALONE RAISED THE PROSPECT THAT TCI MIGHT JOIN WITH AN EXISTING PARTNER QVC INC CHIEF BARRY DILLER IN PURSUIT OF A NEW DEAL NOW THAT QVC HAS LOST ITS FIGHT FOR PARAMOUNT COMMUNICATIONS INC ADDED MR MALONE WE'LL COME OUT OF THIS BIGGER AND BETTER AND STRONGER THAN EVER DESPITE THOSE ROSY OUTLOOKS SOME OUTSIDERS ASK HOW TWO POWER PLAYERS COULD LET WHAT SOME PEOPLE SEE AS A SHORTTERM BLIP DERAIL SUCH BOLDLY AMBITIOUS PLANS TO SHAPE THE INTERACTIVE FUTURE THE BUSINESS WORLD HAD BEEN STUNNED BY THE NOTION THAT BELL ATLANTIC A STAID AND HEAVILY REGULATED PRODUCT OF THE SCLEROTIC BELL SYSTEM COULD DARE TO ACQUIRE TCI PARAGON OF THE BAREKNUCKLE FREEWHEELING WORLD OF CABLE ENTREPRENEURS MR SMITH HAD PRIDED HIMSELF ON HIS EFFORTS TO FREE HIS COMPANY FROM THE CAUTIOUS AND CONSERVATIVE WAYS OF THE PAST BUT OLD WAYS DIE HARD WHEN THE TWO CEOS TOOK THE PODIUM OCT 13 TO ANNOUNCE THEIR PAIRING MR MALONE COULDN'T RESIST CITING BELL ATLANTIC'S STUCKINTHEMUD CONSERVATISM AND HIS HOPE OF TRANSFORMING IT INTO A MORE OUTSPOKEN MORE ENTREPRENEURIAL ENTERPRISE ACCORDING TO A PERSON IN THE TCI CAMP MR MALONE HAD CONTINUING CONCERNS ABOUT THE DIFFERENCES IN CORPORATE CULTURE HE EVEN DREW UP A LIST OF 23 QUESTIONS ARTICULATING HIS CONCERNS DID BELL ATLANTIC HAVE THE BACKBONE TO BREAK ITS TRADITION OF PAYING ANNUAL DIVIDENDS DID IT HAVE THE STOMACH FOR HIGHGROWTH VENTURES WAS IT COMMITTED TO LEADING THE WAY INTO THE INTERACTIVE ERA OR WAS IT JUST GIVING LIP SERVICE TO THE IDEA AFTER THE DEAL WAS ANNOUNCED MR MALONE DISPATCHED AIDES TO GRILL SENIOR BELL ATLANTIC EXECUTIVES WHO WERE ALSO ASKED TO NAME THE FIVE MOST EFFECTIVE TOP MANAGERS AND EXPLAIN WHY THE SURVEY WAS HARDLY ENCOURAGING ACCORDING TO ONE PERSON FAMILIAR WITH THE EXERCISE IN MANY INSTANCES ACCORDING TO THIS PERSON BELL ATLANTIC EXECUTIVES COULD NAME NO MORE THAN THREE HIGHLYEFFECTIVE MANAGERS THE BOTTOMLINE ASSESSMENT CHANGE WOULDN'T COME EARLY OR EASY THE CULTURE CLASH BECAME EVIDENT SOON AFTER THE DEAL WAS ANNOUNCED THE AGREEMENT AT FIRST BLUSH SEEMED STARTLINGLY SIMPLE EVEN ELEGANT BELL ATLANTIC WOULD ISSUE NEW NONDIVIDEND SHARES TO PAY 118 BILLION FOR MOST TCI CABLE SYSTEMS WHICH REACH INTO ONEQUARTER OF THE NATION'S 60 MILLION CABLE HOMES LATER THE BABY BELL WOULD PAY MORE STOCK WORTH UPWARD OF 4 BILLION TO ACQUIRE LIBERTY MEDIA'S ENVIABLE STABLE OF CABLE CHANNEL STAKES BELL ATLANTIC WOULD ASSUME THE TWO CABLE FIRMS' COMBINED DEBT OF ALMOST 10 BILLION BUT THE DICKERING STARTED WITHIN DAYS OF THE DEAL'S DEBUT THERE WAS TENSION OVER PRICING ALMOST FROM THE START SAYS ONE PERSON IN THE TCI CAMP MR MALONE KNOWN FOR RENEGOTIATING EVEN AFTER TERMS HAVE BEEN REACHED BEGAN PUSHING FOR NEW TERMS ALMOST IMMEDIATELY AS BELL ATLANTIC STOCK SLID THE STOCK HAD SURGED TO A HIGH OF 67625 THE DAY AFTER THE TCI DEAL WAS UNVEILED WELL ABOVE THE 54 LEVEL BELL ATLANTIC HAD GUARANTEED TO TCI BUT THE SHARES STARTED SLIPPING A DAY LATER AND DROPPED BELOW THE 60 MARK BY DEC 31 NEVER TO REBOUND YESTERDAY BELL ATLANTIC SHARES ROSE 175 TO CLOSE AT 5450 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WHILE TCI SHARES DROPPED 1875 IN NASDAQ TRADING TO 22375 THE SLIPPAGE MADE IT ALL THE MORE DIFFICULT TO PUT A HARD VALUE ON THE NEW NONDIVIDEND SHARES THAT BELL ATLANTIC WOULD USE TO PAY FOR TCI THE SHARES WOULD PROBABLY TRADE BELOW THE PRICE OF REGULAR BELL ATLANTIC STOCK SINCE THEY WOULD LACK THE 268AYEAR DIVIDEND BUT TCI AND BELL ATLANTIC COULDN'T AGREE ON JUST HOW MUCH LOWER TCI ARGUED THE NEW SHARES WOULD TRADE AT A DEEP DISCOUNT AND THEREFORE BELL ATLANTIC SHOULD HAVE TO PAY OUT EVEN MORE THAN THE 220 MILLION SHARES IT HAD ALREADY PLEDGED FOR THE CABLE SYSTEMS BUT BELL ATLANTIC WASN'T EAGER TO FLOOD THE MARKET WITH STILL MORE SHARES IT ALREADY EXPECTED THE INITIAL PHASE OF THE DEAL TO DILUTE ITS EARNINGS PER SHARE BY UPWARD OF 35 FOR A FEW YEARS DRAINING EARNINGS EVEN MORE MIGHT ANGER INSTITUTIONAL INVESTORS AND OTHER SHAREHOLDERS AND INVITE UNKIND SCRUTINY FROM CONSUMER ADVOCATES AND FEDERAL AND STATE REGULATORS THE ROUGHHEWN FRONTIERSMEN AT TCI WERE UNACCUSTOMED TO LOSING ANY SLEEP OVER SUCH SENSITIVITIES AFTER YEARS OF SEEING THEIR COMPANY VILIFIED IN WASHINGTON AS A MONOPOLIST AND CORPORATE HEAVY ENTREPRENEURS WHO HAD BUILT TCI THROUGH BRASSY TACTICS AND WITH A PRESCIENT EYE ON THE FUTURE MR MALONE AND TCI FOUNDER ROBERT MAGNESS EMBRACED THE LONGTERM VIEW AND AN ABIDING BELIEF THAT THEY COULD BUILD VALUE THE TCI MEN THEREFORE WERE LESS THAN ENTIRELY SYMPATHETIC WHEN THEIR NEW PARTNERS AT BELL ATLANTIC BEGAN WORRYING ABOUT THE CABLE COMPANY'S CLOUDY NEARTERM OUTLOOK FOR CASH FLOW WALL STREET HAD SOME CONCERNS TOO TCI'S STOCK PRICE DROPPED 26 FROM THE TIME THE BELL ATLANTIC DEAL WAS ANNOUNCED TO THE DAY IT WAS SCUTTLED WHILE THAT WAS PARTLY DUE TO BELL ATLANTIC'S OWN SLIDE THE TCI DROP WAS EVEN SHARPER THAN THE 21 DECLINE IN BELL ATLANTIC SHARES BY THE TIME OF THE FINAL CONFRONTATION THIS WEEK THE TWO SIDES HAD RENEGOTIATED THE DEAL THREE TIMES ALWAYS BELL ATLANTIC'S FIRST CONCERN IN EVALUATING EACH PACKAGE WAS HOW IT WOULD PLAY AMONG ITS VARIOUS CONSTITUENCIES IN WASHINGTON ON THE STATE LEVEL AND ON WALL STREET BELL ATLANTIC LOATHED THE IDEA OF PAYING TOO HIGH A PRICE FOR TCI IN A MILIEU OF UNCERTAINTY IN WASHINGTON OVER HOW MUCH CASH CABLE SYSTEMS WOULD BE ALLOWED TO GENERATE TCI HAD A CONTRARY CONCERN SHOULD MALONE & CO SELL OUT AT A LOWER PRICE THAN THEY DESERVED DURING THAT SAME SHORTTERM PERIOD OF UNCERTAINTY STILL THE TWO PARTNERS WERE ABLE TO ARRIVE AT THEIR FOURTH AND THEY HOPED FINAL ACCORD ON MONDAY OF THIS WEEK THROUGH A COMPLEX ARRAY OF FORMULAS THAT SPANNED 50 PAGES THEY AGREED THAT BELL ATLANTIC WOULD PAY ABOUT 06 SHARE OF NEW NONDIVIDEND STOCK FOR EACH SHARE OF THE COMBINED TCILIBERTY DOWN FROM AN INDICATED RATIO OF 065 INITIALLY THAT WOULD TOTAL 372 MILLION SHARES OF NEW STOCK FOR EVERYTHING AT THE 53ASHARE RATE THAT BELL ATLANTIC'S REGULAR STOCK HAD CLOSED AT LAST FRIDAY THAT WOULD TOTAL 197 BILLION PLUS THE ASSUMPTION OF 96 BILLION IN DEBT PUT ANOTHER WAY AND INCLUDING DEBT THE ENTIRE PRICE WOULD COME IN AT ABOUT 2000 PER TCI CABLE SUBSCRIBER DOWN FROM 2350 ORIGINALLY ONE KNOWLEDGEABLE EXECUTIVE SAYS WE HAD GOTTEN PRETTY CLOSE SAYS LAWRENCE T BABBIO JR ONE OF BELL ATLANTIC'S CHIEF NEGOTIATORS AND THE CHAIRMAN OF ITS INTERNATIONAL BUSINESSES BUT THE TWO SIDES LEFT OPEN THE OPPORTUNITY TO NEGOTIATE FURTHER AFTER THE FCC DECISION CAME OUT THE NEXT DAY HE SAYS THE TCI CAMP DISAGREES SAYING THEY THOUGHT THE PRICE WAS FIRM AND THAT BELL ATLANTIC HAD PLEDGED TO ABSORB ANY IMPACT OF AN FCC RULING ON TUESDAY MR SMITH AND HIS BELL ATLANTIC TEAM WATCHED THE FCC PROCEEDINGS LIVE ON TV HE HAD HOPED THE FCC WOULD ONLY FREEZE CABLE RATES RATHER THAN IMPOSE A NEW CUT WHEN HE SAW THE 7 REDUCTION IMPOSED I KNEW IT WAS GOING TO PUT US IN A DIFFICULT SITUATION HE SAID IN AN INTERVIEW YESTERDAY EVEN TCI EXECUTIVES PROJECTED THE NEW RATE CUT WOULD REDUCE THEIR COMPANY'S CASH FLOW BY 15 OR ABOUT 144 MILLION A YEAR THAT MIGHT SEEM LESS THAN DEVASTATING GIVEN THAT THE COMBINED COMPANIES WOULD HAVE HAD ANNUAL REVENUE OF 17 BILLION AND CASH FLOW OF 6 BILLION BUT THE LOWER RATE WOULD HAVE REDUCED THE COMBINED COMPANIES' ABILITY TO RAISE NEW CAPITAL BY AT LEAST 900 MILLION A YEAR AT A TIME WHEN THEY WERE PLANNING TO SPEND BILLIONS ON THE ELUSIVE INFORMATION HIGHWAY BELL ATLANTIC EXECUTIVES WERE FURTHER SPOOKED BY OTHER ELEMENTS OF THE FCC ACTION SUCH AS LINKING FUTURE CABLERATE INCREASES TO INFLATION AND CREATING NEW LEVELS OF OVERSIGHT THAT HADN'T EXISTED BEFORE THIS WAS NOT GOING TO BE JUST A ONETIME REDUCTION IN RATES SAYS BELL ATLANTIC'S MR BABBIO MR MALONE HAD PUT IN A CALL TO MR SMITH IMMEDIATELY AFTER THE FCC ACTION APPEARED ON CSPAN WHEN THEY FINALLY TALKED HOURS LATER THE TWO AGREED TO MEET THE NEXT DAY IN NEW YORK NEITHER SAID SO BUT THEY BOTH KNEW THE DEAL WAS ON SHAKY GROUND AT THIS POINT THE TWO SIDES DIVERGE IN THEIR ACCOUNT OF EVENTS AND THE DISAGREEMENTS RAISE QUESTIONS ABOUT THEIR REPEATED CLAIMS THAT THEY HAVE SPLIT AMICABLY MR SMITH'S VERSION THE MALONE TEAM ARRIVED AT THE MEETING HELD AT THE OFFICES OF BELL ATLANTIC'S LEGAL ADVISERS SKADDEN ARPS SLATE MEAGHER & FLOM AND MR MALONE SOON LAUNCHED INTO A DISCOURSE ON WHY THE DEAL NOW WOULDN'T WORK MR MALONE TOLD THE BELL ATLANTIC EXECUTIVES YOU WOULDN'T BE IN YOUR RIGHT MIND IF YOU ACCEPTED THE CURRENT TERMS THAT THE COMPANIES HAD SET ON MONDAY MR SMITH SAYS BUT HE SAYS MR MALONE ADDED THAT I CANNOT BUDGE A NICKEL MR SMITH SAYS THAT STILL THINKING HE COULD SALVAGE THE DEAL HE COUNTERED WITH OTHER WAYS THEY MIGHT BE ABLE TO WORK THE NUMBERS HE SAYS HE GAVE UP WHEN MR MALONE'S LAWYER PULLED OUT AN ALREADYPREPARED PRESS RELEASE ANNOUNCING THE DEAL'S COLLAPSE AT THAT POINT IT WAS PRETTY CLEAR THAT JOHN WAS SERIOUS MR SMITH SAYS THE TCI VERSION OF EVENTS IS THAT IT WAS MR SMITH WHO OPENED WITH A LITANY OF REASONS WHY THE DEAL IN ITS CURRENT VERSION WOULDN'T WORK MR MALONE TOOK THE FLOOR ONLY AFTER BECOMING CONVINCED THAT BELL ATLANTIC WAS REFUSING TO STICK TO THE PREVIOUS DAY'S AGREEMENT HIS SUPPORTERS SAY AS FOR THE PRESS RELEASE ONE PERSON ON THE TCI SIDE SAYS IT HADN'T BEEN DRAFTED FOR THE WEDNESDAY MEETING IT WAS WRITTEN WEEKS EARLIER WHEN TCI EXECUTIVES THOUGHT THE DEAL WAS IN DANGER OF COLLAPSING AS THE PARTIES MISSED THE FIRST OF THREE DEADLINES EVERYONE IN ESSENCE HAD BLESSED THE DEAL SAYS THE HIGHLEVEL MEMBER OF THE TCI CAMP BUT WHEN THE FCC ANNOUNCEMENT CAME OUT BELL ATLANTIC EXECUTIVES WERE FRIGHTENED OUT OF THEIR MINDS MR MALONE WAS ALMOST AS POINTED IN A CONFERENCE CALL WITH THE NEWS MEDIA YESTERDAY HE SOFTENED SOME OF HIS PREVIOUS CRITICISM OF THE FCC ACTION AND SAID THE BOTTOM LINE ON WHY THE DEAL DIDN'T GO THROUGH WAS THAT MR SMITH WAS UNWILLING TO GO FORWARD WITH A PRICE THAT WAS ON THE TABLE THREE DAYS AGO WE WERE UNWILLING TO SEE ANY REDUCTION IN THE PRICE AND THE TCI CHIEF EXECUTIVE SAID HIS COMPANY ISN'T TYPICALLY RATTLED BY MEASURES THE FCC TAKES UNLIKE SOME OF THE CHICKEN LITTLES OUT THERE MR MALONE FURTHER TOOK A SHOT AT THE SEVEN BABY BELLS AS A GROUP WASHINGTON MAY VIEW TCI AS A MONOPOLIST HE SAID BUT THESE GUYS HAVE BEEN MONOPOLISTS FOR 120 YEARS JOHN J KELLER CONTRIBUTED TO THIS ARTICLE 9402250019 940225 BUSINESS BRIEF SYNTEX CORP QUARTERLY PROFIT FELL 20 IN LINE WITH EXPECTATIONS SYNTEX CORP SAID NET INCOME FOR ITS SECOND QUARTER ENDED JAN 31 SKIDDED 20 TO 958 MILLION OR 43 CENTS A SHARE THE RESULTS WERE IN LINE WITH ANALYSTS' ESTIMATES BUT SYNTEX STOCK STILL SLIPPED 375 CENTS TO CLOSE AT 13375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PALO ALTO CALIF PHARMACEUTICAL CONCERN HAS BEEN EXPECTED TO STRUGGLE BECAUSE OF THE EXPIRATION OF PATENTS ON TWO FLAGSHIP PRODUCTS NAPROSYN AND ANAPROX BOTH OF WHICH ARE ANTIINFLAMMATORY DRUGS THOSE PATENTS EXPIRED IN DECEMBER SINCE THEN MAKERS OF RIVAL VERSIONS OF THE DRUGS HAVE BEEN CHEWING INTO SYNTEX'S MARKET SHARE INDEED SYNTEX SAID THE EROSION OF ITS MARKET SHARE HAS BEEN SOMEWHAT MORE RAPID THAN EXPECTED SALES FOR THE SECOND QUARTER DROPPED 3 TO 4891 MILLION FROM 5055 MILLION IN THE YEAREARLIER QUARTER SYNTEX EARNED 1191 MILLION OR 54 CENTS A SHARE 9402250018 940225 HOLOPHANE APPROVES BUYBACK COLUMBUS OHIO HOLOPHANE CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 590000 COMMON SHARES FROM TIME TO TIME IN OPENMARKET OR PRIVATE TRANSACTIONS THE COMPANY SAID THE SHARES WOULD BE USED PRIMARILY FOR STOCKOPTION PROGRAMS HOLOPHANE WHICH MAKES LIGHTING FIXTURES AND SYSTEMS SAID REPURCHASES WOULD DEPEND ON MARKET CONDITIONS HOLOPHANE HAS 77 MILLION SHARES OUTSTANDING 9402250017 940225 DUTCH REPORT BLAMES ENGINE MOUNTINGS FOR 1992 EL AL CRASH THE HAGUE REUTER FAULTY ENGINE MOUNTINGS PROBABLY CAUSED THE OCTOBER 1992 AMSTERDAM AIR DISASTER THAT KILLED 47 PEOPLE AN INDEPENDENT REPORT SAID THE REPORT BY THE NETHERLANDS AVIATION SAFETY BOARD ALSO CRITICIZED POOR COMMUNICATION BETWEEN THE CREW AND AIRTRAFFIC CONTROL AND SAID PILOTS AND CONTROLLERS NEED BETTER TRAINING THE TRAGEDY OCCURRED WHEN AN EL AL BOEING CO 747 CARGO PLANE LOST TWO OF FOUR ENGINES SHORTLY AFTER TAKEOFF AND CRASHED INTO AN AMSTERDAM APARTMENT BLOCK ENGULFING IT IN FLAMES THE BOARD CONCLUDED THAT METAL FATIGUE IN ONE OF THE PYLONS FIXING THE ENGINES TO THE WINGS PROBABLY SET OFF THE SEQUENCE OF EVENTS THAT LED TO THE CRASH THE DESIGN AND CERTIFICATION OF THE B 747 PYLON WAS FOUND TO BE INADEQUATE TO PROVIDE THE REQUIRED LEVEL OF SAFETY IT SAID IN THE 48PAGE REPORT CRASH INVESTIGATORS HAD PREVIOUSLY POINTED TO A FAULTY PYLON AS THE LIKELY CAUSE OF THE CRASH BOEING HAS ALREADY STARTED EQUIPPING ALL 747 JETS AROUND THE WORLD WITH STRONGER ENGINE MOUNTINGS THUS MEETING ONE OF THE DUTCH REPORT'S KEY RECOMMENDATIONS NEITHER BOEING NOR EL AL HAS ACKNOWLEDGED LIABILITY FOR THE CRASH BUT THEY HAVE MADE JOINT COMPENSATION PROPOSALS TO VICTIMS OF THE CRASH AND THEIR RELATIVES THE DUTCH BOARD'S TASK IS TO EXAMINE THE PROBABLE CAUSE OF ACCIDENTS AND RECOMMEND MEASURES TO IMPROVE AIR SAFETY NOT TO DETERMINE LIABILITY A BOEING SPOKESMAN SAID THE DUTCH REPORT LOOKED VERY SIMILAR TO THE PRELIMINARY REPORT WE SAW IN OCTOBER HE SAID THE ENGINE PYLON STRUCTURES HAD BEEN REDESIGNED AND THAT CHANGES ARE BEING MADE IN THE FLEET THE REPORT SAID THE CARGO JET'S INNER STARBOARD ENGINE HAD RIPPED LOOSE TEARING OFF THE OUTER STARBOARD ENGINE AND DAMAGING THE WING AS IT FELL THE REPORT ADDED THE EXCHANGE OF INFORMATION WAS AT TIMES INADEQUATE THE CREW ONLY GAVE SPARSE INFORMATION CONCERNING THEIR PROBLEMS AND INTENTIONS THE CONTROLLER OCCASIONALLY USED NONSTANDARD PHRASEOLOGY WHICH WAS NOT AS EXPLICIT OR UNDERSTANDABLE AS WOULD BE DESIRABLE IN AN EMERGENCY SITUATION IT SAID 9402250016 940225 BUSINESS BRIEF CRYSTAL BRANDS INC COMPANY TO GET FINANCING IN NEW PACT WITH CITIBANK CRYSTAL BRANDS INC OPERATING UNDER CHAPTER 11 BANKRUPTCY CODE PROTECTION SINCE JAN 21 SAID IT ENTERED INTO A 75 MILLION DEBTORINPOSSESSION FINANCING AGREEMENT WITH CITICORP'S CITIBANK UNIT THE NEW AGREEMENT REPLACES THE SOUTHPORT CONN COMPANY'S INTERIM DIP FACILITY WITH CITIBANK WHICH HAD AN AGGREGATE LIMIT OF 50 MILLION CRYSTAL BRANDS PRODUCES SPORTSWEAR UNDER THE BRAND NAMES GANT SALTY DOG AND IZOD AS WELL AS COSTUME JEWELRY UNDER THE BRAND NAMES MONET TRIFARI AND MARVELLA 9402250015 940225 WHAT'S NEWS BUSINESS AND FINANCE BELL ATLANTIC AND TCI ARE FOCUSING ON THE FUTURE IN THE WAKE OF THEIR FAILED AGREEMENT TO COMBINE BELL ATLANTIC PLANS TO PURSUE PROGRAMMING VENTURES WITH LIBERTY MEDIA BUT MAY SEEK SEPARATE PARTNERS IN VARIOUS MARKETS RATHER THAN ONE GRAND ALLY POTENTIAL DEALS ARE EXPECTED TO BE DISCUSSED AT TCI'S BOARD MEETING TODAY CABLETV STOCKS SANK IN THE WAKE OF THE BROKEN BELL ATLANTICTCI PACT BUT MANY ANALYSTS SEE NO GOOD REASON TO FLEE AND SOME BIG INVESTORS SAW A BUYING OPPORTUNITY IN THE SELLOFF PLUNGING BOND PRICES AND THE COLLAPSE OF THE BELL ATLANTICTCI DEAL KNOCKED STOCK PRICES INTO A TAILSPIN THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 5178 OR 13 TO 383990 ORDERS FOR DURABLE GOODS JUMPED 37 LAST MONTH FROM DECEMBER WHEN THEY ROSE 21 MUCH OF THE INCREASE CAME FROM A 139 RISE IN TRANSPORTATION ORDERS PARTICULARLY FOR AIRCRAFT WESTINGHOUSE ELECTRIC PAID ROBERT WATSON AT LEAST 10 MILLION FOR 18 MONTHS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS FINANCIALSERVICES ARM A PERSON CLOSE TO THE FIRM SAID RJR NABISCO PLANS TO RAISE 2 BILLION IN A PREFERREDSTOCK OFFERING IN A MOVE WIDELY SEEN AS THE PRECURSOR TO A SEPARATION OF RJR'S FOOD AND TOBACCO BUSINESSES OR A MERGER WITH ANOTHER GIANT CONSUMERPRODUCTS COMPANY TENNECO'S MICHAEL WALSH STEPPED DOWN AS CEO AND THE BOARD ELECTED DANA MEAD PRESIDENT AND CHIEF OPERATING OFFICER TO SUCCEED HIM THE WHITE HOUSE EASED RESTRICTIONS ON COMPUTER EXPORTS TO MOST COUNTRIES AS PART OF A POLICY REVIEW OF CONTROLS OVER THE SALE OF HIGH TECHNOLOGY NYNEX AND AMERITECH TAPPED DIGITAL EQUIPMENT TO SUPPLY VIDEOSERVER GEAR ACCORDING TO INDUSTRY INSIDERS SOUTHWESTERN BELL AGREED TO BUY ASSOCIATED COMMUNICATIONS' US CELLULAR BUSINESS FOR 552 MILLION IN STOCK INCREASING THE BABY BELL'S CELLULAR OPERATIONS IN UPSTATE NEW YORK MERCK SAID A TWOYEAR EFFORT TO DEVELOP A PROMISING NEW TYPE OF AIDS DRUG WAS DEALT A SERIOUS SETBACK THE GROUP OF SEVEN IS EXPECTED TO FOCUS ON THE ECONOMIC PROBLEMS OF RUSSIA AT ITS FRANKFURT MEETING THIS WEEKEND DESPITE THE WORSENING TRADE TENSIONS BETWEEN THE G7'S TWO LARGEST ECONOMIES THE US AND JAPAN METROPOLITAN LIFE AGREED TO PAY AT LEAST 15 MILLION TO SETTLE ALLEGATIONS BY PENNSYLVANIA REGULATORS THAT SOME MET LIFE AGENTS EXPLOITED CUSTOMERS BARNEYS NEW YORK RELEASED EARNINGS AND A SALES FORECAST FOR THE FIRST TIME REBUTTING SPECULATION THAT THE RETAILER IS IN FINANCIAL STRAITS COMPAQ IS SHIFTING SOME OF ITS NOTEBOOK COMPUTER PRODUCTION TO THE US FROM SINGAPORE AS PART OF A 20 MILLION EXPANSION PROGRAM CITING INCREASED DEMAND AND EASING TRADE BARRIERS BONDS LEHMAN BROTHERS TREASURY INDEX 537670 OFF 5102 COMMODITIES OIL 1477 A BARREL UP 36 CENTS DOW JONES FUTURES INDEX 14620 UP 055 SPOT INDEX 13117 DOWN 050 DOLLAR 10495 YEN OFF 080 17172 MARKS OFF 00112 9402250013 940225 INTERNATIONAL FRANCE STEERS TOWARD SUPERHIGHWAY' WITH TVINDUSTRY MERGERS A NEW LAW BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS MULTIMEDIA FEVER HAS SPREAD TO FRANCE HASTENING A CONSOLIDATION OF THE NATION'S TELEVISION INDUSTRY AND SPURRING THE GOVERNMENT TO TAKE ACTION THAT SOME SAY IS LONG OVERDUE NOTWITHSTANDING THE COLLAPSE OF BELL ATLANTIC CORP'S PLANS TO ACQUIRE TELECOMMUNICATIONS INC FRENCH OFFICIALS HAVE BEEN BOTH FASCINATED AND BEMUSED BY US EFFORTS TO CREATE INFORMATION SUPERHIGHWAYS AND A PLETHORA OF CONSUMER SERVICES TO GO WITH THEM WHILE FRANCE STARTED DEVELOPING ITS OWN CRUDE INTERACTIVE TECHNOLOGY MORE THAN A DECADE AGO IN THE FORM OF THE SUCCESSFUL MINITEL VIDEOTEX SERVICE MANY NOW FEAR THE NATION IS LAGGING BEHIND ITS EUROPEAN NEIGHBORS LET ALONE THE US CABLE TELEVISION FOR EXAMPLE HAS SO FAR BEEN AN EXPENSIVE FLOP AND THE STATE TELECOMMUNICATIONS MONOPOLY HAS BEEN SLOW TO EXPLOIT ITS POTENTIAL AS AN OPERATOR OF BOTH TELEPHONE AND CABLE NETWORKS BUT A SERIES OF CORPORATE AND GOVERNMENT MOVES OVER THE PAST FEW DAYS HAS INJECTED A NEW URGENCY INTO FRANCE'S CATCHUP EFFORTS AND UNLEASHED A TORRENT OF PUBLICITY ABOUT THE BRAVE NEW INTERACTIVE WORLD THAT MAY LIE AHEAD THE MOST SPECTACULAR DEVELOPMENT HAS BEEN THE DECISION THIS MONTH BY KEY SHAREHOLDERS OF THE CANAL PLUS PAYTV STATION FRANCE'S BIGGEST AUDIOVISUAL SUCCESS STORY OF THE 1980S TO COMBINE THEIR STAKES INTO A JOINT HOLDING THE MOVE SPARKED A FURIOUS CONTROVERSY BECAUSE IT LED TO THE RESIGNATION OF CANAL PLUS'S FOUNDER AND CHAIRMAN ANDRE ROUSSELET WHO CHARGED THAT THE GOVERNMENT ENGINEERED THE WHOLE AFFAIR AGAINST HIS WILL THE GOVERNMENT DENIES THE CHARGE ASIDE FROM ITS POLITICAL REPERCUSSIONS THE MOVE IS SIGNIFICANT BECAUSE IT CEMENTS THE LINKS BETWEEN THE CANAL PLUS TV FRANCHISE HAVAS SA A LARGE AND DIVERSIFIED PUBLISHER WHICH OWNS 24 OF THE STATION THE CABLE OPERATOR CIE GENERALE DES EAUX WHICH HOLDS 20 AND THE RETAIL BANK SOCIETE GENERALE WHICH OWNS 5 MEANWHILE THE FRENCH TELECOMMUNICATIONS MONOPOLY FRANCE TELECOM AGREED TO HAND OVER ITS PART OF A TELEPHONEDIRECTORY PUBLISHING OPERATION TO HAVAS IN EXCHANGE FOR A 5 STAKE IN THAT COMPANY GOVERNMENT OFFICIALS SAY THE RESULT IS THE EMERGENCE OF A POTENTIAL MULTIMEDIA CONGLOMERATE THAT THEY HOPE COULD BECOME A SORT OF NATIONAL CHAMPION BEFORE THE POLITICAL FUSS HAD DIED DOWN PRIME MINISTER EDOUARD BALLADUR ANNOUNCED ON TUESDAY THAT HE IS COMMISSIONING AN OFFICIAL REPORT ON ELECTRONIC SUPERHIGHWAYS PRIOR TO INTRODUCING NEW LEGISLATION IN PARLIAMENT THIS YEAR OVER THE NEXT THREE YEARS MR BALLADUR SAID HE EXPECTS A BIG MOBILIZATION OF INVESTMENT PARTICULARLY IN CABLE AND THE GOVERNMENT IS HINTING THAT IT WOULD LIKE THE EUROPEAN UNION TO PLAY AN IMPORTANT ROLE IN MOTIVATING AND FINANCING MORE SOPHISTICATED PANEUROPEAN INTERACTIVE NETWORKS THE CANAL PLUS MANEUVERING WAS MADE POSSIBLE BY A NEW FRENCH LAW ON AUDIOVISUAL SERVICES THAT INCREASES THE LIMITS ON INVESTMENT IN TV COMPANIES FROM A MAXIMUM OF 25 TO 49 TWO OTHER BIG COMPANIES BOUYGUES SA AND LYONNAISE DES EAUXDUMEZ SAID THIS WEEK THEY ALSO PLAN TO INCREASE THEIR STAKES IN THEIR RESPECTIVE PRIVATE TV STATIONS TF1 AND M6 SUCH RAPIDFIRE MANEUVERING HAS STIRRED BIG PUBLIC INTEREST PARIS MATCH A FASHION AND GOSSIP MAGAZINE THAT WRITES A LOT ABOUT MODELS AND VERY LITTLE ABOUT MODEMS EVEN RAN A GUSHING 12PAGE COLOR FEATURE IN ITS LATEST EDITION ABOUT THE OPPORTUNITIES PRESENTED BY MULTIMEDIA BUT GOVERNMENT OFFICIALS AND INDEPENDENT ANALYSTS CAUTION THAT THERE IS STILL A VERY LONG WAY TO GO BEFORE STATEOFTHEART MULTIMEDIA BECOMES A REALITY IN FRANCE FOR ONE THING GIVEN THE PAUCITY OF CABLE IT'S STILL FAR FROM CERTAIN HOW CONSUMERS WILL GET ACCESS TO IT DESPITE A HUGE INVESTMENT OF MORE THAN 20 BILLION FRANCS 341 BILLION OVER THE PAST DECADE ONLY FIVE MILLION HOMES IN FRANCE CURRENTLY ARE WIRED AND OF THOSE ONLY 12 MILLION HAVE ACTUALLY SUBSCRIBED TO THE VARIOUS CABLE TV SERVICES CURRENTLY BEING OFFERED AS A RESULT FRENCH CABLE OPERATORS ARE ALL MAKING HEFTY LOSSES IN THE US THE IDEA OF MULTIMEDIA MAKES SENSE BECAUSE THERE ARE CONSUMERS FOR IT IN FRANCE THERE AREN'T SAYS CHRISTOPHE CHERBLANC AN ANALYST AT CHOLETDUPONT IN PARIS FRANCE ALSO LAGS BEHIND ON THE HARDWARE NEEDED TO ESTABLISH INFORMATION SUPERHIGHWAYS A STUDY OF THE EUROPEAN MARKET BY THE PA CONSULTING GROUP IN LONDON THIS WEEK CONCLUDED THAT FRANCE IS FAR BEHIND GERMANY AND THE UNITED KINGDOM IN ITS DEVELOPMENT AND DEPLOYMENT OF THE CRUCIAL BROADBAND TELECOMMUNICATIONS INFRASTRUCTURE THAT CAN REACH CONSUMERS MOREOVER FRENCH EXECUTIVES COMPLAIN THAT THE US IS WELL AHEAD WHEN IT COMES TO PROVIDING SERVICES FOR A BIG EXPANSION OF THE AUDIOVISUAL SECTOR JEROME SEYDOUX THE CHIEF EXECUTIVE OF CHARGEURS SA WHICH RECENTLY STARTED INVESTING IN CABLE SYSTEMS HAS SAID THE LACK OF TV PROGRAMMING IN EUROPE IS OUR REAL INFERIORITY CABLE OPERATORS HAVE GRIPED THAT THE FRANCHISE GIVEN TO CANAL PLUS IS A KEY PART OF THE PROBLEM THE PAYSTATION WHICH SHOWS MANY OF THE LATEST FILMS AND KEY SPORTS EVENTS IS BEAMED IN SCRAMBLED FORM TO MOST HOMES IN FRANCE AND HAS ATTRACTED ABOUT 35 MILLION SUBSCRIBERS CABLE OPERATORS SAY ITS SUCCESS HAS MADE CABLE LESS ATTRACTIVE TO CONSUMERS AND THE GOVERNMENT SEEMS TO AGREE DURING NEGOTIATIONS TO RENEW ITS FRANCHISE WHICH EXPIRES NEXT YEAR GOVERNMENT OFFICIALS SAY THEY HAVE BEEN URGING CANAL PLUS TO PLAY A BIGGER ROLE IN THE DEVELOPMENT OF CABLE TV AND USE SOME OF ITS REVENUES TO FINANCE CABLE SYSTEMS FRANCE TELECOM IS ALSO HELD BY SOME AS THE SCAPEGOAT FOR FRANCE'S TARDINESS BUT A FRANCE TELECOM SPOKESMAN SAYS THE COMPANY HAS BEEN INVESTING HEAVILY IN CABLE SATELLITE AND OTHER HARDWARE AND IS NOW INCREASINGLY INVOLVED IN MULTIMEDIA SERVICES AMONG OTHER THINGS FRANCE TELECOM RECENTLY ANNOUNCED IT IS WORKING WITH TELEVISION COMPANIES ON A PAYPERVIEW TELEVISION SERVICE 9402250011 940225 MARKETING BRIEF NOTED HOME SHOPPING SPECIALTY RETAILER SPIEGEL INC AND TIME WARNER INC'S TIME WARNER ENTERTAINMENT CO LP CHOSE FOUR MARKETS FOR THE DEBUT OF THEIR CATALOGBASED CABLETV SHOPPING NETWORK ROCHESTER NY MILWAUKEE WIS NASHUA NH AND COLUMBUS OHIO ALSO BOMBAY CO WILL JOIN EIGHT OTHER CATALOG COMPANIES PARTICIPATING IN THE NETWORK THE CATALOG 1 SERVICE BEGINS MARCH 28 9402250010 940225 SENATE SCHEDULES VOTE ON PAIR OF PROPOSALS FOR BALANCED BUDGET WASHINGTON SENATE LEADERS SCHEDULED A VOTE NEXT WEEK ON THE PROPOSED BALANCEDBUDGET AMENDMENT TO THE CONSTITUTION SIGNALING THAT MAJORITY DEMOCRATS THINK THEY HAVE ENOUGH VOTES TO KILL IT DEBATE OVER THE BUDGETBALANCING ISSUE BEGAN TO TAKE FINAL SHAPE WHEN SEN HARRY REID D NEV OFFERED AN ALTERNATIVE TO THE MAIN AMENDMENT SPONSORED BY SEN PAUL SIMON D ILL MR SIMON'S OPPONENTS INCLUDING THE DEMOCRATIC LEADERSHIP APPROPRIATIONS CHAIRMAN ROBERT BYRD D WVA AND THE WHITE HOUSE INTEND THE REID PROPOSAL TO PROVIDE PROTECTION FOR NERVOUS PARTY MEMBERS WHO OPPOSE THE BALANCEDBUDGET AMENDMENT BUT FEAR THE POLITICAL CONSEQUENCES OF BLOCKING IT PASSAGE OF ANY CONSTITUTIONAL AMENDMENT REQUIRES A TWOTHIRDS MAJORITY OR VOTES OF 67 SENATORS MR REID'S PROPOSAL IS CONSIDERED CERTAIN TO FAIL BECAUSE THE VAST MAJORITY OF REPUBLICANS WILL OPPOSE IT AND THE SIMON PROPOSAL NOW HAS JUST 62 SUPPORTERS ACCORDING TO CONSERVATIVE SEN LARRY CRAIG R UTAH MR REID'S PROPOSAL DIFFERS FROM MR SIMON'S BY EXEMPTING SOCIAL SECURITY FROM POSSIBLE BUDGET CUTS PROVIDING AN EXCEPTION FOR UNBALANCED BUDGETS DURING ECONOMIC RECESSIONS AND PERMITTING BORROWING TO FINANCE INFRASTRUCTURE IMPROVEMENTS AMONG OTHER THINGS SEN CRAIG CRITICIZED MR REID'S PROPOSAL AS MERELY A FIG LEAF BUT OTHER SIMON ALLIES PREDICTED PRIVATELY THE DEMOCRATS' STRATEGY WILL WORK STILL MR SIMON HELD OUT HOPE THAT A WEEKEND OF CONSTITUENT PRESSURE MAY YET BRING ENOUGH WAVERING SENATORS AROUND IT IS STILL VERY VERY CLOSE THE ILLINOIS DEMOCRAT SAID VOTES ON BOTH PROPOSALS HAVE BEEN SCHEDULED FOR TUESDAY 9402250009 940225 FALLING SHARE PRICES STIFLE ACQUISITIONS SPUR INVESTORS THE DEAL COLLAPSES EVENTS OF 1994 REVEAL THE DARK SIDE OF USING STOCK OVER CASH IN MEGADEALS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL A WAVE OF ACQUISITIONS PAID FOR WITH HIGHFLYING STOCK HELPED MAKE 1993 A BOOM YEAR FOR MERGERS BUT THE EVENTS OF 1994 ARE SHOWING THE DARK SIDE OF USING STOCK INSTEAD OF CASH IN MEGADEALS ON WEDNESDAY THE PLANNED MARRIAGE OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC COLLAPSED DUE IN PART TO A DROP IN THE STOCK PRICE OF BELL ATLANTIC WHICH PLANNED TO ISSUE AS MUCH AS 20 BILLION IN STOCK TO ACQUIRE CABLE GIANT TCI SHAREHOLDERS OF BLOCKBUSTER ENTERTAINMENT CORP ARE UP IN ARMS OVER A STEEP SLIDE IN THE STOCK PRICE OF VIACOM INC WHICH PLANS TO USE ITS STOCK TO ACQUIRE BLOCKBUSTER AS PART OF ITS BIGGER DEAL TO BUY PARAMOUNT COMMUNICATIONS INC FOR 95 BILLION AND BANC ONE CORP THE OHIO BANK THAT HAS EXPANDED RAPIDLY THROUGH A STRING OF STOCKFINANCED ACQUISITIONS CALLED OFF ITS PURCHASE OF FIRSTIER FINANCIAL INC LAST WEEK BECAUSE OF A FALL IN BANC ONE'S STOCK PRICE IN THE 1980S MERGER BOOM ACQUISITIONHUNGRY COMPANIES TYPICALLY PAID CASH TO SHAREHOLDERS OF THE CORPORATIONS THEY BOUGHT USUALLY THE ACQUIRER OBTAINED THE CASH BY BORROWING FROM BANKS OR SELLING JUNK BONDS BUT IN THE CURRENT MERGER WAVE WITH THE STOCK MARKET TRADING NEAR RECORD LEVELS EQUITY NOT CASH IS KING MANY MORE DEALS ARE BEING PAID FOR WITH STOCK SOME 37 OF US DEALS ANNOUNCED LAST YEAR WERE STOCKFORSTOCK MERGERS COMPARED WITH ONLY 5 IN 1988 AND THAT MEANS THE ACQUIRER'S STOCK PRICE IS A CRITICAL ELEMENT IN GETTING DEALS DONE PEOPLE IN THE 1980S GOT USED TO A VERY LARGE PROPORTION OF CASH DEALS SAYS FELIX ROHATYN GENERAL PARTNER OF LAZARD FRERES & CO IN THOSE DEALS HE EXPLAINS THE OPEN ISSUE WAS WOULD THE BUYER HAVE THE FINANCING TO CLOSE NOT WHAT THE VALUE WOULD BE ONCE THE CLOSING TOOK PLACE NOWADAYS COMPANIES THAT LAUNCH STOCK ACQUISITIONS FACE A DAILY REFERENDUM BY STOCKMARKET INVESTORS ON THE MERITS OF THEIR PLANS JACK LEVY COHEAD OF MERGERS AT MERRILL LYNCH & CO SAYS YOU PUT YOURSELF AT RISK MR LEVY ADDS INSTEAD OF DEALING WITH A HANDFUL OF CREDIT OFFICERS AT A FEW BANKS WHO MAKE THE LENDING DECISION AND THEN IT'S DONE YOU ARE DEALING WITH LOT OF EQUITY INVESTORS WHO ARE CONSTANTLY MAKING DECISIONS EVERY DAY WHETHER THEY LIKE WHAT'S BEING DONE LATELY IT SEEMS THOSE INVESTORS HAVE GROWN MORE SKEPTICAL SAYS MR ROHATYN WHENEVER YOU COME UP WITH THESE CONCEPT DEALS IF YOU WILL AND KIND OF LYRICAL DESCRIPTIONS OF STRATEGIC ALLIANCES AND SYNERGIES' THERE IS A CERTAIN AMOUNT OF SKEPTICISM YOU KNOW YOU'VE HEARD THAT BEFORE IN OTHER TIMES AND OTHER PLACES IT ALMOST GOES WITHOUT SAYING THAT STOCKFINANCED DEALS DEPEND ON A STABLE IF NOT ROBUST STOCK MARKET THE ACQUIRERS' STOCKS THAT HAVE WILTED RECENTLY DID SO WITHOUT THE EXTRA PRESSURE OF A MARKETWIDE DOWNDRAFT BUT A GENERAL MARKET DECLINE REMAINS A RISK AS YESTERDAY'S 5178POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE MAKES CLEAR JEFFREY SECHREST HEAD OF MERGERS AT LEHMAN BROTHERS INC SAID THAT WITH THE STOCK MARKET NEAR ITS PEAK AND INTEREST RATES RISING PEOPLE ARE CONCERNED ABOUT THE BIG CORRECTION AS LONG AS UNCERTAINTY EXISTS IN THE STOCK MARKET IT'S GOING TO BE HARDER TO DO STOCK DEALS IN GENERAL AND SELLERS ARE GOING TO DEMAND PRICE PROTECTION IN THE CASE OF REGIONAL PHONE COMPANY BELL ATLANTIC ITS STOCK WENT DOWN PARTLY BECAUSE OF A RISE IN INTEREST RATES WHICH CUTS THE VALUE OF THE DIVIDENDS PAID BY ANY UTILITY IN ADDITION INVESTORS' SKEPTICISM HAS BEEN RISING ABOUT HOW SOON THE INFORMATION SUPERHIGHWAY PROMISED BY BELL ATLANTIC AND OTHER TELECOMMUNICATIONS COMPANIES WILL BE PAVED WITH GOLD AT BANC ONE INVESTORS TURNED SKEPTICAL NOT OVER THE BANKING COMPANY'S OPERATING RESULTS BUT MORE OVER WHAT THEY PERCEIVED AS THE RISK OF BANC ONE'S EXPOSURE TO DERIVATIVE SECURITIES WHOSE VALUE IS LINKED TO THE VALUE OF OTHER UNDERLYING ASSETS IN THE RECENT FIVEMONTH BATTLE FOR CONTROL OF ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT TRADERS HAD TO CHOOSE BETWEEN TWO BIDS THAT BOTH INCLUDED STOCK AND OTHER SECURITIES WHEN THE CONTEST BEGAN THE BIDS OF BOTH VIACOM AND ITS RIVAL QVC INC CONSISTED MOSTLY OF THEIR OWN HIGHFLYING STOCK BOTH STOCKS CAME BACK DOWN TO EARTH AS THE CONTEST WORE ON VIACOM EVENTUALLY PREVAILED BY REDUCING THE AMOUNT OF COMMON STOCK IN ITS BID AND BY ADDING OTHER SECURITIES WHOSE VALUE WOULDN'T FLUCTUATE AS MUCH OR WHOSE VALUE WOULD INCREASE IF VIACOM'S COMMON STOCK DIDN'T APPRECIATE QVC EFFECTIVELY CONCEDED THE CONTEST BY DECLINING TO PROMISE INVESTORS ANY EXTRA COMPENSATION IF QVC STOCK DIDN'T PERFORM ANOTHER OBVIOUS DIFFICULTY OF STOCK DEALS IS THAT THEY TAKE LONGER TO COMPLETE TYPICALLY THE COMPANY ISSUING THE STOCK MUST DRAW UP A SPECIAL PROSPECTUS OUTLINING THE DEAL AND HAVE IT APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION THEN THE TARGET COMPANY'S SHAREHOLDERS MUST VOTE TO APPROVE THE DEAL THE BIGGEST RISK IS THAT IF THE ACQUIRER'S STOCK FALLS IN THE MEANTIME SHAREHOLDERS MAY VOTE THE DEAL DOWN AS SOME BLOCKBUSTER HOLDERS NOW ARE THREATENING TO DO VIACOM IS OFFERING BLOCKBUSTER HOLDERS EXTRA COMPENSATION IF ITS STOCK PRICE DOESN'T REACH 52 A SHARE A YEAR AFTER THE MERGER BUT THAT COMPENSATION DOESN'T INCREASE IF VIACOM'S STOCK FALLS BELOW 36 A SHARE VIACOM CLASS B NONVOTING STOCK WHICH CLOSED AT 25 A SHARE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IS TRADING FAR BELOW THAT LEVEL SEE RELATED ARTICLE HEARD ON THE STREET CABLETV ISSUES STILL LOOK GOOD TO SOME INVESTORS WSJ FEB 25 1994 9402250008 940225 WHO'S NEWS CIRCUS CIRCUS CHIEF LEAVES TOP POST REMAINS CHAIRMAN BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS IN THE LATEST MANAGEMENT SHIFT AT ONE OF THE CASINO INDUSTRY'S MOST SUCCESSFUL OPERATORS CIRCUS CIRCUS ENTERPRISES INC SAID COMPANY COFOUNDER WILLIAM G BENNETT HAS STEPPED ASIDE AS CHIEF EXECUTIVE OFFICER CLYDE T TURNER 57 YEARS OLD WILL SUCCEED MR BENNETT 69 AS CHIEF EXECUTIVE AND RETAIN HIS CURRENT POSITION AS PRESIDENT KURT SULLIVAN 41 WHO HAS BEEN DIRECTOR OF OPERATIONS WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AND WAS ELECTED TO THE BOARD SEPARATELY THE COMPANY REPORTED NET INCOME OF 255 MILLION OR 30 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JAN 31 UP 28 FROM 20 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE WAS 272 MILLION UP 42 FROM 1911 MILLION FOR THE YEAR CIRCUS REPORTED NET INCOME OF 1162 MILLION OR 134 A SHARE DOWN LESS THAN 1 FROM 1173 MILLION OR 137 A SHARE A YEAR EARLIER REVENUE FOR THE YEAR ROSE 13 TO 955 MILLION FROM 843 MILLION THE FISCAL 1994 RESULTS INCLUDE PREOPENING EXPENSES FROM THE LUXOR CASINORESORT OF ABOUT 165 MILLION OR 12 CENTS A SHARE AS WELL AS A 37 MILLION INCREASE IN TAXES IN ITS FIRST 3 1/2 MONTHS OF OPERATIONS THE LUXOR GENERATED REVENUE OF 893 MILLION AND OPERATING CASH FLOW OF 276 MILLION THE COMPANY AS A WHOLE GENERATED OPERATING CASH FLOW OF 276 MILLION FOR THE FISCAL YEAR MR BENNETT'S DECISION TO LEAVE THE CHIEF EXECUTIVE'S POST CAME AS SOMEWHAT OF A SURPRISE ALTHOUGH IT'S NOT THE FIRST TIME THE TOUGH BUT PUBLICITYSHY EXECUTIVE HAS ANNOUNCED PLANS TO RELINQUISH SOME CONTROL I FEEL LIKE I'VE GOT A REAL GOOD TEAM IN PLACE AND I'M NOT GOING TO STEP COMPLETELY OUT MR BENNETT SAID IN AN INTERVIEW HE SAID HE MADE THE DECISION OUT OF A DESIRE TO SPEND MORE TIME WITH HIS WIFE AND TO ENJOY HIS HOBBIES OF BOATING AND SAILING HE ALSO CONCEDED THAT HEALTH PROBLEMS INCLUDING CHRONIC PAIN IN HIS BACK AND FEET WERE A MINOR FACTOR MR TURNER WAS RESERVED IN LAYING OUT PLANS FOR FURTHER EXECUTIVE CHANGES I HAVE BROADER RESPONSIBILITIES NOW BUT I'M A TEAM PLAYER SAID MR TURNER WHO JOINED CIRCUS LAST YEAR AFTER 14 YEARS AS A FINANCIAL EXECUTIVE WITH RIVAL MIRAGE RESORTS INC I'LL BE ASKING MR BENNETT FOR A LOT OF GUIDANCE AND HE'S STILL CHAIRMAN INDEED INDUSTRY OBSERVERS PRIVATELY QUESTIONED HOW MUCH INFLUENCE THE STRONGWILLED EXECUTIVE WILL YIELD TO CIRCUS'S SENIOR MANAGERS MR BENNETT ANNOUNCED PLANS TO RETIRE IN 1991 BUT QUICKLY CHANGED HIS MIND TRIGGERING THE DEPARTURE OF HIS DESIGNATED SUCCESSOR RICK BANIS SEVERAL SENIOR MANAGERS HAVE LEFT CIRCUS SINCE THEN RAISING SUBSTANTIAL CONCERN ON WALL STREET ABOUT THE COMPANY'S ABILITY TO MANAGE ITS AGGRESSIVE GROWTH IN THE FACE OF MOUNTING COMPETITION WORLDWIDE THEY INCLUDE MEL LARSON THE COMPANY'S TOP MARKETING EXECUTIVE JAMES MUIR CHIEF OPERATING OFFICER AND MOST VISIBLY GLENN SCHAEFFER WHO LEFT A YEAR AGO AS PRESIDENT AND CHIEF FINANCIAL OFFICER AND WHO ALSO HAD BEEN GROOMED TO SUCCEED MR BENNETT AND LAST MONTH WILLIAM PAULOS THE VETERAN OPERATING EXECUTIVE WHO OVERSAW THE OPENING OF THE LUXOR ANNOUNCED HIS DEPARTURE TO BECOME CHIEF OPERATING OFFICER FOR CROWN CASINO LTD AN AUSTRALIAN CONCERN THE COMPANY'S STOCK HAS BEEN PERFORMING POORLY OVER THE PAST FEW MONTHS WHICH ANALYSTS ATTRIBUTED TO GENERAL CAUTION TOWARD CASINO STOCKS DISCOMFORT WITH CIRCUS'S CONTINUING MANAGEMENT UPHEAVAL AND OTHER ISSUES THE ANNOUNCEMENT CAME AFTER THE CLOSE OF THE MARKETS WHERE CIRCUS SHARES CLOSED AT 36875 DOWN 625 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9402250007 940225 DAEWOO GROUP NET ROSE 56 IN 1993 SALES CLIMBED 35 SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S DAEWOO CONGLOMERATE SAID THE COMBINED NET INCOME OF ITS 20 SUBSIDIARIES SURGED 56 TO 4648 BILLION WON 5754 MILLION LAST YEAR THANKS TO ACTIVE EXPORTS AND LOCAL SALES OF AUTOMOBILES AND OTHER HEAVYINDUSTRY PRODUCTS ACCORDING TO A DAEWOO REPORT COMBINED SALES ALSO POSTED HEFTY GROWTH IN 1993 GAINING 35 TO 273 TRILLION WON THE COMPANY'S DEBTTOASSET RATIO MEANWHILE DROPPED TO 261 LAST YEAR FROM 329 A YEAR EARLIER THANKS TO IMPROVED EARNINGS THE REPORT SAID THE OVERALL IMPROVED BUSINESS CIRCUMSTANCES WERE ATTRIBUTABLE TO THE HEFTY GROWTH IN BOTH EXPORTS AND LOCAL SALES OF AUTOMOBILES ELECTRONICS GOODS SHIPS AND MACHINERY SAID A DAEWOO SPOKESMAN DAEWOO'S ACTIVE MARKET EXPANSION INTO THE COMMONWEALTH OF INDEPENDENT STATES CHINA SOUTHEAST ASIA AND THE MIDDLE EAST ALSO CONTRIBUTED NET INCOME OF DAEWOO CORP THE GROUP'S TRADING ARM ROSE 21 TO 486 BILLION WON IN 1993 FROM 403 BILLION WON THE YEAR EARLIER SALES OF THE TRADING UNIT JUMPED 16 TO 95 TRILLION WON FROM 82 TRILLION WON EARNINGS OF DAEWOO SHIPBUILDING & HEAVY MACHINERY LTD FELL 5 TO 2006 BILLION WON LAST YEAR FROM 2112 BILLION WON IN 1992 SALES OF THE SHIPBUILDER HOWEVER POSTED A SLIGHT RISE OF 02 TO 16 TRILLION WON THE REPORT SAID NET INCOME OF DAEWOO ELECTRONICS CO ROSE 15 LAST YEAR TO 19 BILLION WON AS SALES CLIMBED 16 TO 2 TRILLION WON DAEWOO MOTOR CO WHICH HAS SUFFERED FROM DECLINING PROFITS FOR THE PAST THREE YEARS FAILED TO PULL OUT OF NEGATIVE TERRITORY IT REPORTED AN ESTIMATED LOSS OF 60 BILLION WON LAST YEAR NARROWING FROM A LOSS OF 956 BILLION WON IN 1992 9402250006 940225 CULTIVATE PROAMERICAN KUWAIT BY DANIEL PIPES KUWAIT CITY THE LIBERATION OF KUWAIT TOOK PLACE THREE YEARS AGO SATURDAY BUT WHO REMEMBERS IT FOR AMERICANS THE EVENT FEELS LIKE ANCIENT HISTORY WHAT ABOUT KUWAITIS A VISITOR TO KUWAIT FIRST NOTICES THAT VIRTUALLY ALL TRACES OF THE IRAQI INVASION ARE GONE WITH A SPEED THAT SURPRISED EVERYONE KUWAITIS MANAGED TO EXTINGUISH HUNDREDS OF BURNING OIL WELLS REPAIR THOUSANDS OF BUILDINGS AND REMOVE MILLIONS OF LAND MINES THE WORK OF CLEANING AND FIXING HAS BEEN SO COMPLETE THAT IF YOU DIDN'T ALREADY KNOW ABOUT THE IRAQI INVASION YOU WOULDN'T KNOW IT TOOK PLACE BY LOOKING AROUND INDEED IN A FEW CASES THE GOVERNMENT HAS ACTUALLY CANCELED REPAIR WORK TO SAVE SOME EVIDENCE AS WITNESS TO THE INVASION'S AWFUL BARBARISM BUT IF KUWAIT HAS EXTERNALLY RETURNED TO ITS OLD SELF INTERNALLY IT IS A MUCH CHANGED PLACE AS ONE KUWAITI TOLD ME DURING A TRIP LAST MONTH THE INVASION MADE US A SERIOUS PEOPLE HE IS RIGHT BEFORE THE INVASION KUWAITIS HAD ENJOYED LIVES OF ASTONISHING PRIVILEGE AND INDULGENCE OIL REVENUE PROVIDED THE BASIS FOR THE GOOD LIFE AND A SENSIBLE GOVERNMENT GAVE THE PEOPLE FREEDOM KUWAITIS HAD BETTER PROSPECTS THAN ANY OTHER OIL EXPORTER FOR THE WISE POLICY OF SALTING MONEY AWAY PROMISED THEM INTEREST AND DIVIDENDS EVEN AS THEIR OPEC BRETHREN STRUGGLED WITH LOWERED OIL PRICES SOME OF THAT PRIVILEGED LIFE REMAINS IN FUNDAMENTAL WAYS KUWAIT CONTINUES TO BE A SOCIETY IN TWO PARTS MASTERS KUWAITI CITIZENS AND SERVANTS ALL OTHERS FOR THOSE LUCKY ENOUGH TO BE SERVED RATHER THAN TO SERVE THE MONEY REMAINS MORE THAN ADEQUATE EVEN IF IT'S NOT WHAT IT USED TO BE THE TROUBLE IS THE IRAQI INVASION DESTROYED THE EASY ASSUMPTION OF OLD THAT THE STATE WOULD TAKE CARE OF EVERYONE BY DRAWING ON ITS VAST OIL RESERVES AND FOREIGN INVESTMENTS MANY KUWAITIS PREVIOUSLY CONTENT TO LIVE OFF THEIR GOVERNMENT SALARY NOW WANT MONEY IN THEIR OWN ACCOUNTS ABROAD SAFE FROM REGIONAL PREDATORS TOWARD THIS END THEY HAVE TO HUSTLE COMMERCIALLY I FELT THIS DIRECTLY ONE PLEASANT YOUNG MAN ASSIGNED BY THE GOVERNMENT TO HELP ME GET AROUND WAS SLIGHTLY OVERBURDENED AS HE TRIED TO RUN A RESTAURANT AND A CAR DEALERSHIP WHILE TAKING CARE OF ME KUWAITIS HAVE PROFOUNDLY CHANGED THEIR VIEWS OF THEIR GOVERNMENT AND OF THE OUTSIDE WORLD THE RULING SABAH FAMILY HAS COME IN FOR MUCH CRITICISM SOME OF IT PERTAINING TO THE INVASION WHY HAD KUWAIT GIVEN MORE THAN 15 BILLION TO IRAQ DURING THE 1980S WHY WAS THE COUNTRY STRATEGICALLY ISOLATED ON AUG 2 1990 WHY WAS IT SO COMPLETELY UNPREPARED FOR THE INVASION CRITICISM EXTENDS TO OTHER MATTERS TOO FOREMOST AMONG THEM THE DISAPPEARANCE OF SOME 5 BILLION FROM OFFICIAL INVESTMENTS IN SPAIN THE REESTABLISHMENT OF KUWAIT'S PARLIAMENT JUST OVER A YEAR AGO PROVIDES A FORUM FOR THIS DISCONTENT ON THE DAY IN JANUARY WHEN I OBSERVED ITS PROCEEDINGS DEPUTIES DISCUSSED THE DELICATE QUESTION OF MINISTERIAL PROSECUTION IE HOW ARE THOSE RESPONSIBLE FOR THE SPANISH FIASCO GOING TO BE JUDGED AND THE GOVERNMENT LOST THE VOTE 039 THE ACRIMONY OF THIS EVENT AND THE WIDE ATTENTION PAID TO IT BROUGHT HOME TWO POINTS KUWAITIS FEEL AN URGENT NEED TO DECIDE UPON AN ORDER FOR THEIR SOCIETY AND A PLACE FOR THE RULING FAMILY IN IT AND DOMESTIC CONSIDERATIONS NOW DOMINATE THE PUBLIC DEBATE INDEED THAT KUWAITIS DO NOT FEEL AN ACUTE SENSE OF URGENCY ABOUT THE OUTSIDE WORLD COMES AS SOMETHING OF A SHOCK WHEN PRESSED NEARLY EVERY KUWAITI ACKNOWLEDGES THAT HIS COUNTRY REMAINS RICH BUT WEAK THAT IRAQ AND IRAN REMAIN AGGRESSIVE STATES AND THAT AMERICAN TROOPS REMAIN THE SOLE GUARANTOR OF KUWAIT'S SECURITY EVEN ITS VERY EXISTENCE BUT DOMESTIC ISSUES ABSORB SO MUCH ATTENTION THAT ONLY A FEW SOPHISTICATED VOICES WORRY MUCH ABOUT THE OUTSIDE WORLD IN THIS REGARD KUWAITIS RESEMBLE AMERICANS BOTH PEOPLES HAVE TURNED THEIR ATTENTION AWAY FROM EXTERNAL ISSUES TO CONCENTRATE ON REBUILDING THEIR SOCIETIES THE DIFFERENCE IS THAT WHILE AMERICANS CAN AFFORD SUCH INTROSPECTION KUWAITIS CANNOT I WORRY THAT KUWAITIS' FASCINATION WITH DOMESTIC MATTERS WILL RENDER THEIR COUNTRY ONCE AGAIN VULNERABLE TO ITS THUGGISH NEIGHBORS THIS PROSPECT CONCERNS ME NOT JUST FOR THE SAKE OF KUWAIT BUT ALSO FOR AMERICA'S SAKE RESURRECTING KUWAIT ACHIEVED SOMETHING IMPORTANT FOR US INTERESTS KUWAIT JOINED THAT LONG LIST OF COUNTRIES ENJOYING A FREE EXISTENCE THANKS TO THE US ADMITTEDLY KUWAIT IS PRETTY MINOR COMPARED WITH THE OTHER COUNTRIES FITTING THAT DESCRIPTION ALL OF EUROPE THE FORMER SOVIET UNION JAPAN SOUTH KOREA TAIWAN AND ISRAEL BUT IT STANDS OUT AS THE FIRST ARAB STATE IN THIS CATEGORY AS SUCH IF OFFERS A UNIQUE OPPORTUNITY LACKING THE PROFOUND ANTIAMERICANISM FOUND IN ALL OTHER ARABICSPEAKING COUNTRIES KUWAIT COULD BE OUR FIRST ARAB ALLY WE HAVE TACTICAL ARRANGEMENTS WITH OTHER COUNTRIES IN THE REGION EGYPT SAUDI ARABIA BUT KUWAIT COULD BE DIFFERENT A COUNTRY WITH WHICH WE SHARE VALUES AND LONGTERM GOALS DESPITE ITS SMALL SIZE AND POPULATION KUWAIT HAS MUCH TO OFFER A CRITICAL LOCATION A FOOTHOLD WITHIN OPEC CULTURAL INFLUENCE AND A POLITICAL MODEL FOR ITS NEIGHBORS THE TROUBLE IS BOTH KUWAITIS AND AMERICANS HAVE FOR THE MOMENT LOST INTEREST IN EACH OTHER THE TIME HAS COME FOR EACH OF US TO PAY MORE ATTENTION TO THE OTHER AND TO REAP THE MANY POTENTIAL BENEFITS OF STRONGER USKUWAIT TIES IF WE DON'T WE'LL PAY FOR IT WHEN THE PERSIAN GULF GOES THROUGH ITS NEXT ROUND OF TROUBLES MR PIPES IS DIRECTOR OF THE MIDDLE EAST FORUM IN PHILADELPHIA HE VISITED KUWAIT AS A GUEST OF THE UNIVERSITY OF KUWAIT AND ONCE RAN A WASHINGTON CONFERENCE PARTIALLY FUNDED BY THE KUWAITI GOVERNMENT 9402250005 940225 DOMESTIC CAR MAKERS INCREASE PRODUCTION OVERTIME SCHEDULED DETROIT THE 10 US AUTO MAKERS EXPECT TO BUILD 267350 CARS AND TRUCKS THIS WEEK AN INCREASE OF 195 FROM THE 223713 VEHICLES BUILT IN THE YEAREARLIER WEEK GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP SCHEDULED OVERTIME THIS WEEK AT SEVERAL CAR AND LIGHTTRUCK ASSEMBLY PLANTS 9402250004 940225 CREDIT MARKETS BOND PRICES FALL ON WORRIES OVER HIGHER RATES BUT MANY ARE PUZZLED BY INTENSITY OF SELLING BY LESLIE SCISM AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT RISING INTEREST RATES SENT TREASURY BOND PRICES PLUNGING AGAIN THE STEEP SELLOFF PROPELLED THE YIELD OF THE BENCHMARK 30YEAR BOND TO 673 ITS HIGHEST LEVEL SINCE LATE JUNE AND UP FROM 665 WEDNESDAY THE PRICE DROPPED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 93 23/32 YIELDS OF TREASURYS MATURING IN SEVEN TO 10 YEARS ALSO ROSE SHARPLY BUT YIELDS OF THE ONEYEAR AND SIXMONTH BILLS HELD STEADY OR IMPROVED SLIGHTLY SUGGESTING SOME INVESTORS FOUND A SAFE HARBOR IN SHORTERTERM MATURITIES THE SELLOFF IN THE US MARKET SWEPT INTO FOREIGN MARKETS ESPECIALLY THOSE OF DEVELOPING NATIONS LIKE MEXICO AND ARGENTINA IN THOSE LATIN AMERICAN COUNTRIES BOND PRICES DROPPED AS MUCH AS 3 1/2 POINTS OR 35 FOR A BOND WITH A 1000 FACE VALUE THERE WAS NO BIG ECONOMIC NEWS TO SHAKE THE MARKET LEAVING MANY INVESTORS PUZZLED BY THE FEROCITY OF THE SELLOFF THIS IS DRIVING ME NUTS SAID ROBERT ANDRES HEAD OF FIXEDINCOME INVESTING AT MARTINDALE ANDRES & CO IT'S HERD INSTINCT WE'VE ENTERED THE TWILIGHT ZONE THIS IS INSANE IN FACT MOST OF THE SELLOFF CAME AFTER A BETTERTHANEXPECTED TREASURY AUCTION OF 11 BILLION IN FIVEYEAR NOTES ADMITTEDLY THERE WAS A STRONGERTHANEXPECTED REPORT ON DURABLEGOODS ORDERS FOR JANUARY BUT IT WASN'T OF THE SIGNIFICANCE TO CAUSE PRICE DROPS LIKE THOSE THE MARKET SUFFERED BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF A GROWING ECONOMY BECAUSE THEY WORRY THAT IT WILL LEAD TO HIGHER INFLATION WHICH ERODES THE VALUE OF FIXEDINCOME INVESTMENTS ALSO YESTERDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ADDRESSED A CONGRESSIONAL COMMITTEE BUT MUCH OF WHAT HE SAID WAS A REPEAT OF COMMENTS HE MADE TUESDAY WHEN HE HINTED THAT THERE WOULD BE FURTHER BOOSTS TO SHORTTERM RATES AS PREEMPTIVE STRIKES AGAINST INFLATION MR ANDRES AND MANY OTHER INVESTORS BELIEVE THAT THE TREASURY'S LONG BOND AND MANY NOTES NOW ARE BARGAINPRICED BUT FEW WANT TO BUY WITH BEARISH MARKET SENTIMENT ABOUNDING I THINK THIS IS OVERDONE SAID BARBARA KENWORTHY A PORTFOLIO MANAGER FOR DREYFUS CORP I THINK AT THESE LEVELS YOU'VE GOT GOOD VALUE IN THE MARKET BUT WILL SHE BUY QUITE HONESTLY AS LONG AS YOU CONTINUE TO SEE THIS DOWNWARD PUSH IN THE MARKET I DON'T GET ANY GRATIFICATION FROM BUYING PAUL MCCORMACK HEAD OF GOVERNMENT BOND TRADING AT CHASE SECURITIES INC SAID THE SELLING MOSTLY CAME FROM PROFESSIONAL TRADERS AND SOME HEDGE FUNDS AS PREVIOUSLY REPORTED MANY HEDGE FUNDS HAVE TAKEN BEATINGS ON EUROPEAN SECURITY AND CURRENCY BETS AND SOME HAVE HAD PROBLEMS UNWINDING THOSE BETS TRADERS SAID SOME COULD BE RAISING CASH IN THE HIGHLY LIQUID US TREASURY MARKET OTHERS SAID THE HEDGE FUNDS MAY BE MAKING MONEY NOW SHORTING US TREASURYS IN A SHORT SALE AN INVESTOR SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE WHILE SOME TREASURY MUTUAL FUNDS HAVE BEEN HIT WITH HEAVY REDEMPTIONS IN RECENT WEEKS SEVERAL BIG MUTUALFUND COMPANIES INCLUDING FIDELITY INVESTMENTS AND VANGUARD GROUP SAID THEY HAD ENOUGH CASH ON HAND TO MEET REDEMPTIONS BUT THE FACT THAT SMALL INVESTORS HAVE STOPPED POURING MONEY INTO BOND FUNDS HAS ONE BIG IMPACT ON THE BOND MARKET MUTUAL FUNDS ARE NO LONGER THERE TO SOP UP SUPPLY AT THE SAME TIME THE HEAVY SUPPLY OF TREASURY ISSUES THAT CAME INTO THE BOND MARKET THIS MONTH WEIGHED ON PRICES THE DEALER COMMUNITY IS NOT THAT ANXIOUS TO LOAD UP ON INVENTORY OF BONDS RIGHT NOW SAID IAN MACKINNON SENIOR VICE PRESIDENT AT VANGUARD GROUP THAT PROVIDES SOME INGREDIENTS FOR ADDITIONAL WEAKNESS JUST FROM A PURE TECHNICAL STANDPOINT THE DAY STARTED BADLY WHEN THE COMMERCE DEPARTMENT SURPRISED INVESTORS WITH THE REPORT ON DURABLEGOODS ORDERS THE REPORT SAID THAT NEW FACTORY ORDERS FOR DURABLE GOODS ROSE A SEASONALLY ADJUSTED 37 IN JANUARY STRONGER THAN THE 1 INCREASE ANTICIPATED MEANWHILE A SUCCESSFUL FIVEYEAR NOTE SALE WAS UNABLE TO KEEP TREASURY PRICES FROM HEADING LOWER ONCE AGAIN AT THE AUCTION THE TREASURY DEPARTMENT AWARDED ITS 11 BILLION OF NEW FIVEYEAR NOTES AT A YIELD OF 561 BELOW THE 563TO564 RATE ANTICIPATED BY MOST DEALERS THE TREASURY RECEIVED BIDS TOTALING 3144 BILLION AND ACCEPTED 1102 BILLION FOR A BIDTOCOVER RATIO OF 285TO1 THE BIDTOCOVER RATIO COMPARES BIDS RECEIVED TO BIDS ACCEPTED THE BIDS INCLUDED 516 MILLION OF NONCOMPETITIVE TENDERS DOWN FROM 566 MILLION AT THE PREVIOUS FIVEYEAR NOTE AUCTION NONCOMPETITIVE BIDS TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET DEALER COMMUNITY DEALERS WHO WEREN'T ABLE TO BUY ALL THE NOTES NEEDED FOR CUSTOMERS AT THE AUCTION BEGAN BUYING THE NOTES IMMEDIATELY AFTER THE RESULTS WERE POSTED PUSHING THE YIELD ON THE NEW FIVEYEAR NOTE TO 557 THE REST OF THE MARKET ALSO STRENGTHENED ERASING LOSSES POSTED THROUGHOUT THE MORNING BUT THE BEARISH TONE RESUMED SHORTLY AFTER MR GREENSPAN'S REMARKS SPECIFICALLY HE SAID THAT THE FED'S MOVE TO TIGHTEN MONETARY POLICY EARLIER THIS MONTH WAS TO COUNTER THE BOARD'S PREVIOUS OVERLY ACCOMMODATIVE STANCE AND THAT THE FED MAY HAVE TO MOVE AGAIN BY LATE AFTERNOON THE NEW FIVEYEAR NOTES YIELDED 566 MEANWHILE THE BEARISH SENTIMENT SPREAD SOUTHWARD ACCORDING TO MICHAEL PETTIS A LATIN AMERICAN DEBT EXPERT WITH WESTON GROUP OF NEW YORK SHARP PRICE DROPS OF US TREASURYS SPARKED A SELLOFF AMONG THE GOVERNMENT BONDS OF LATIN NATIONS INCLUDING MEXICO ARGENTINA AND VENEZUELA MEXICO'S SOCALLED PAR BRADY BOND FOR EXAMPLE DROPPED 2 1/8 POINTS YESTERDAY TO 75 5/8 ACCORDING TO MR PETTIS BRADY BONDS ARE MADE FROM GOVERNMENT LOANS THAT HAVE BEEN RESTRUCTURED AND CONVERTED INTO BONDS UNDER GUIDELINES SET UP BY FORMER TREASURY SECRETARY NICHOLAS BRADY PAR BONDS GET THEIR NAME FROM THE FACT THAT THEY REPRESENT DEBT THAT HAS BEEN CONVERTED INTO BONDS AT FACE OR PAR VALUE OF THE LOANS MEANWHILE ARGENTINA'S PAR BRADY BONDS DROPPED 3 5/8 POINTS TO 61 5/8 AND VENEZUELA'S PAR BONDS DROPPED 2 3/4 TO 62 1/2 EVERYONE HAS BEEN A LITTLE CONCERNED ABOUT HOW EUPHORIC THE MARKET FOR DEVELOPINGNATION DEBT HAS BEEN SAID MR PETTIS IT'S BEEN TOO FROTHY HE SAID AND THESE SELLOFFS CAN BE PRETTY BRUTAL AND WE MAY BE IN THE MIDDLE OF ONE NOW HE WARNED MR PETTIS SAID THAT A FRIEND WHO IS A TRADER IN DEVELOPINGNATION DEBT WAS SO EXASPERATED WITH THE HORRIBLE MARKET CONDITIONS YESTERDAY THAT HE TALKED ABOUT QUITTING THIS IS TOO HARD' HE SAID TO ME RECOUNTED MR PETTIS HERE ARE DETAILS OF THE TWOYEAR NOTE AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE MUNICIPAL BOND MARKET'S DECLINE CONTINUED YESTERDAY AND PRICES ENDED AS MUCH AS A FULL POINT LOWER MUNIS WHICH LOST GROUND WEDNESDAY HAVE BEEN FALLING IN THE AFTERMATH OF THE FEDERAL RESERVE'S TIGHTENING EARLY THIS MONTH DEMAND HAS DRIED UP DESPITE FEDERAL INCOMETAX INCREASES AND SECURITIES ARE STACKING UP IN THE SECONDARY MARKET DESPITE SHARPLY REDUCED PRICES IN SECONDARY TRADING THE YIELD ON THE MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO'S 500 BONDS OF 2017 CLIMBED TO ABOUT 565 FROM 558 WEDNESDAY DESPITE RISING YIELDS AND TUMBLING PRICES ISSUERS ARE STILL TAPPING THE MARKET NEW YORK STATE COMPTROLLER H CARL MCCALL SAID THERE WILL BE A COMPETITIVE SALE OF 2241 MILLION OF NEW YORK STATE GENERAL OBLIGATION BONDS TUESDAY THE BONDS WHICH WILL BE DATED MARCH 1 1994 WILL MATURE SERIALLY OVER ONE TO 30 YEARS MR MCCALL'S OFFICE SAID IN A RELEASE PROCEEDS FROM THE BOND SALE WILL BE USED FOR VARIOUS CAPITAL CONSTRUCTION PURPOSES PRICES OF MORTGAGES SECURITIES DECLINED AGAIN BUT LOSSES WERE MODERATED BY COLLATERAL DEMAND BY UNDERWRITERS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 COUPONS FOR MARCH DELIVERY CLOSED 13/32 LOWER AT 99 29/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES BOTH FINISHED 11/32 LOWER AT 100 3/32 AND 99 29/32 RESPECTIVELY MORTGAGE PLAYERS QUICKLY IGNORED THE POSITIVE ELEMENTS OF THE TREASURY AUCTION AND WENT BACK TO BETTING ON WHEN THE FEDERAL RESERVE WOULD AGAIN RAISE SHORTTERM RATES SINCE RISING RATES LESSEN THE POSSIBILITY OF AN EARLY CALL OR PREPAYMENT ON MORTGAGE BONDS DUE TO HOMEOWNER REFINANCING MORTGAGE SECURITIES DIDN'T DECLINE AS STEEPLY AS TREASURYS HIGHCOUPON SECURITIES IN PARTICULAR LOOK BETTER WHEN RATES RISE LATE IN TRADE FOR EXAMPLE GINNIE MAE 85 ISSUES FOR MARCH DELIVERY WERE UNCHANGED AT 105 29/32 ALSO THE ANNOUNCEMENT OF FIVE NEW REALESTATE MORTGAGE INVESTMENT CONDUITS TOTALING OVER 22 BILLION DIDN'T HURT DEALERS UNDERWRITING THOSE DEALS NEED COLLATERAL SO THEY WERE BUYING MORTGAGES IN THE SECONDARY MARKET LAUREN YOUNG CONTRIBUTED TO THIS ARTICLE 9402250003 940225 MARKETING BRIEF VALUEVISION INTERNATIONAL INC PROXY FIGHT MAY FOLLOW NATIONAL MEDIA TAKEOVER BID VALUEVISION INTERNATIONAL INC ADDING PRESSURE TO ITS HOSTILE 1408 MILLION OFFER FOR NATIONAL MEDIA CORP SAID IT PLANS TO LAUNCH A PROXY FIGHT AT THE TARGET COMPANY'S MARCH ANNUAL MEETING VALUEVISION IN MINNEAPOLIS WHICH CURRENTLY HOLDS AN 86 NATIONAL MEDIA STAKE WILL ASK THE TARGET COMPANY'S SHAREHOLDERS TO SEAT A NEW SLATE OF EIGHT DIRECTORS COMMITTED TO ITS TAKEOVER BID THE MOVE BY THE THIRDLARGEST US HOMESHOPPING NETWORK FOLLOWS A REBUFF LAST WEEK FROM NATIONAL MEDIA'S BOARD WHICH ASKED STOCKHOLDERS TO REJECT THE 1050ASHARE CASHANDSTOCK TENDER OFFER DIRECTORS AT NATIONAL MEDIA A PHILADELPHIA TELEVISIONMARKETING CONCERN LABELED THE OFFER INADEQUATE VALUEVISION WOULDN'T SPECULATE ON THE OUTCOME OF THE PROXY VOTE BUT A SPOKESMAN SAID WE CONTINUE TO FEEL THAT OUR OFFER IS APPROPRIATE WE'RE GOING TO PUT IT TO THE SHAREHOLDERS NATIONAL MEDIA DID NOT RETURN PHONE CALLS REQUESTING COMMENT 9402250002 940225 NASD TO LOOK AT MUTUAL FUND AD PRACTICES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IS GEARING UP FOR CLOSER SCRUTINY OF THE ADVERTISING AND DISTRIBUTION PRACTICES OF MUTUAL FUNDS THE SELFREGULATORY GROUP HAS HAD A MUTUALFUND TASK FORCE WORKING SINCE LAST FALL TO DETERMINE WHAT ARE THE PROBLEMS AND GET ON A PREVENTIVE TRACK R CLARK HOOPER NASD VICE PRESIDENT FOR ADVERTISING/INVESTMENT COMPANIES REGULATION SAID AT A NEWS BRIEFING HERE YESTERDAY IN NOVEMBER THE NASD FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSAL TO PROHIBIT STOCK AND BOND MUTUAL FUNDS FROM USING IN ADS AND SALES LITERATURE ANY RANKING BASED ON A PERIOD OF LESS THAN A YEAR MS HOOPER SAID OBJECTIONS HAVE ALREADY BEEN RAISED TO ONE PART OF THE PLAN IT WOULD REQUIRE ANY AD SHOWING A TOTALRETURN RANKING OF A MUTUAL FUND TO INCLUDE THE SAME RANKING ENTITY'S ASSESSMENT OF HOW THAT FUND DID OVER ONE FIVE AND 10 YEARS OR THE LIFE OF THE FUND THERE ARE QUESTIONS ABOUT HOW PRACTICAL THAT IS MS HOOPER SAYS FOR EXAMPLE SOME FUND TRACKERS MIGHT ONLY PROVIDE RANKINGS FOR ONE YEAR THE COMMITTEE BELIEVES THERE IS GOING TO BE SOME ACCOMMODATION THE NASD IS ADDING STAFF THIS YEAR MS HOOPER'S GROUP HAS 15 ANALYSTS REVIEWING ADVERTISING AND MARKETING MATERIALS UP FROM 13 LAST YEAR AND 11 IN 1992 SHE SAID THE NASD WILL EXPAND THIS GROUP IF THE SEC APPROVES A PROPOSAL TO ALLOW MUTUAL FUNDS TO SELL SHARES OFF THE PAGE THAT MEANS INVESTORS COULD CLIP A COUPON FROM A FUND'S NEWSPAPER AD AND MAIL IN A CHECK TO BUY SHARES OF A FUND CURRENTLY INVESTORS WHO BUY DIRECTLY FROM A FUND COMPANY RATHER THAN THROUGH A BROKER MUST WAIT TO RECEIVE A PROSPECTUS AN OFFERING DOCUMENT BEFORE BUYING FUND SHARES BASED IN WASHINGTON THE NASD IS A GROUP THAT WATCHES ALL THE MARKETING MATERIALS OF MUTUAL FUNDS AS WELL AS FINANCIALPLANNING ADS OF THE MORE THAN 36961 AD FILINGS MADE WITH THE NASD LAST YEAR ABOUT 88 WERE FROM MUTUAL FUNDS MS HOOPER SAID THAT'S A BIG INCREASE FROM 1985 WHEN ONLY 53 OF 21192 MARKETING DOCUMENTS WERE FROM MUTUALFUND COMPANIES ALL MARKETING MATERIALS ARE REQUIRED TO BE FILED WITH THE NASD WITHIN 10 DAYS OF FIRST USAGE SOME FIRMS SUBMIT ADS EARLIER THE NASD ANALYSTS CAN TURN AROUND A REVIEW IN THREE DAYS IF REQUESTED THE EXPEDITED PROCESS COSTS 200 ON TOP OF THE REGULAR 25 FOR ADS UP TO FIVE PAGES LONG THE TASK FORCE DECIDED TO FOCUS THE MARCH ISSUE OF THE NASD'S MONTHLY NOTICE TO MEMBERS ON CONCERNS ABOUT DISTRIBUTION OF MUTUAL FUNDS THE NOTICE AMONG OTHER THINGS WILL REMIND NASD MEMBERS ABOUT REQUIREMENTS FOR DISCLOSURE OF RISKS AND EXPENSES 9402250001 940225 INDUSTRY FOCUS FRENCH COMPANIES POUR INTO US WATERWORKS MARKET MOVES OF 2 BIG FIRMS SPARK CRITICISM DISTURB AMERICAN COMPETITORS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL THEY MAY NOT REALIZE IT BUT MORE AND MORE AMERICANS ARE GETTING THEIR DRINKING WATER FROM FRENCH COMPANIES AND WE AREN'T TALKING ABOUT EVIAN OR PERRIER WE'RE TALKING ABOUT HOUSEHOLD WATER STRAIGHT FROM THE TAP TWO BIG FRENCH MUNICIPALSERVICES COMPANIES HAVE JUMPED INTO THE ENORMOUS BUSINESS OF PROVIDING WATER AND SEWER SERVICES IN THE US A BUSINESS LONG DOMINATED BY SLEEPY GOVERNMENT BUREAUCRACIES THEY DON'T IMPORT WATER THEY SIMPLY MANAGE US WATERWORKS THEY ARE DRIVING DOWN FEES PAID BY MUNICIPAL GOVERNMENTS GIVING US COMPETITORS FITS AND SPARKING CRITICISM THEY COULD BECOME THE DOMINANT PLAYERS IN A BUSINESS THAT ONE DAY COULD GENERATE BILLIONS OF DOLLARS IN ANNUAL REVENUE THE FRENCH TODAY OPERATE GOVERNMENTOWNED WATER OR SEWER FACILITIES ACROSS THE US FROM NEWARK NJ TO PIKEVILLE KY AND BURBANK CALIF IN NOVEMBER A FRENCHLED GROUP WON ONE OF THE BIGGEST MUNICIPAL CONTRACTS YET OFFERED TO OUTSIDE BIDDERS TO PROVIDE SEWER SERVICE IN INDIANAPOLIS CURRENTLY THE TWO COMPETITIVE FRENCH COMPANIES CIE GENERALE DES EAUX AND LYONNAISE DES EAUXDUMEZ SA ARE VYING FOR A MULTIMILLIONDOLLAR CONTRACT TO SUPPLY DRINKING WATER TO JEFFERSON PARISH LA JUST OUTSIDE NEW ORLEANS THAT BATTLE HAS PLUNGED THEM INTO THE SWAMPY VAGARIES OF LOUISIANA POLITICS BUT THE FRENCH SEEM HAPPY TO BE THERE THEY SEE A POTENTIAL BONANZA IN THE US MARKET WHERE MORE AND MORE CASHSTRAPPED LOCALITIES ARE HIRING COMPANIES TO PERFORM PUBLIC SERVICES THE FRENCH ARE IN A PARTICULARLY STRONG POSITION MOST US COMPETITORS ARE SMALL AND LIMITED BECAUSE UNLIKE IN FRANCE MOST US GOVERNMENTS HAVE KEPT SUCH WORK FOR THEMSELVES THE FRENCH HAVE AN ENGINEERING AND OPERATING BACKGROUND THAT THE AMERICAN COMPANIES DON'T HAVE SAYS MICHAEL STAYTON INDIANAPOLIS PUBLIC WORKS DIRECTOR THE US COMPANIES JUST ARE PLAYING CATCHUP RIGHT NOW OF THE SEVEN BIGGEST COMPETITORS FOR THESE KIND OF CONTRACTS IN THE US TODAY FOUR ARE WHOLLY OR PARTLY OWNED BY THE FRENCH OR THE BRITISH IN INDIANAPOLIS ALL FOUR FINALISTS FOR THE WORK WERE FOREIGNLED TWO FRENCH TWO BRITISH CONQUERING THE US MARKET IS PART OF A GLOBAL PLAN FOR THE TWO FRENCH GROUPS WHICH ARE FIGHTING FOR WORLDWIDE DOMINANCE OF THE ARCANE MUNICIPALSERVICES MARKET THEY HAVE FOUGHT OVER CONTRACTS FROM BUENOS AIRES TO KUALA LUMPUR MALAYSIA SOME WORTH MORE THAN 1 BILLION IN REVENUE EACH IN THE US ABOUT 20 OF DRINKING WATER AND PERHAPS 2 OF WASTE WATER ARE HANDLED BY REGULATED PRIVATESECTOR COMPANIES THE REST IS HANDLED BY GOVERNMENTS AND THEY ARE STARTING TO CONTRACT IT OUT A BUSINESS VALUED AT PERHAPS 500 MILLION IN ANNUAL FEES TODAY BUT FEDERAL REGULATIONS REQUIRE INCREASINGLY COSTLY WATER TREATMENT AND FEDERAL OFFICIALS ARE URGING CASHSTRAPPED LOCALITIES TO CONSIDER PRIVATE PARTNERSHIPS PATRICK MOFFITT PRESIDENT OF US WATER INC A WHOLLY OWNED UNIT OF BRITAIN'S NORTH WEST WATER GROUP PLC SAYS THE POTENTIAL MARKET EXCEEDS 30 BILLION A YEAR IN OPERATING FEES SOME US COMPANIES COMPLAIN THAT THE FRENCH ARE DOING BUSINESS BELOW COST TO SQUELCH COMPETITION OFFICIALS AT THE TWO FRENCH COMPANIES INSIST THEY AIM TO MAKE A PROFIT IN THE US ALBEIT THIN BY AUTOMATING SERVICES CUTTING STAFF AND REORGANIZING THEY INSIST THEY CAN OPERATE LOCAL FACILITIES AS MUCH AS 40 CHEAPER THAN LOCAL GOVERNMENTS CAN DON EVANS PRESIDENT OF A US COMPETITOR OPERATIONS MANAGEMENT INTERNATIONAL INC A UNIT OF CLOSELY HELD ENGINEERING FIRM CH2M HILL LTD HAS COMPLAINED TO FEDERALGOVERNMENT OFFICIALS AND MEMBERS OF CONGRESS THAT THE FRENCH ARE CUTTING PRICES BELOW THEIR REAL COSTS BUT SAYS HE HAS GOTTEN LITTLE SYMPATHY FROM THE GOVERNMENT'S STANDPOINT IF THE FRENCH ARE WILLING TO SEND CAPITAL OVER WHY NOT HE SAYS THEY THE FRENCH INTEND TO BE LONGTERM PLAYERS THE FRENCH GROUPS HAVE HAD TO LEARN TO PLAY LOCAL POLITICS AND DEAL WITH ANGRY LOCALWATER DEPARTMENT EMPLOYEES WORRIED ABOUT LOSING THEIR JOBS IN JEFFERSON PARISH WHERE THE FRENCH ARE THE TWO PRIVATESECTOR FINALISTS COMPANY OFFICIALS FROM EACH GROUP HAVE MADE POLITICAL CONTRIBUTIONS TO KEY LOCALGOVERNMENT LEADERS WE WEREN'T INVOLVED IN THE POLITICAL PROCESS AT ALL IN THAT COMMUNITY AND IT MAY HAVE BEEN A MISTAKE SAYS MR EVANS OF OPERATIONS MANAGEMENT WHOSE COMPANY WAS ELIMINATED EARLY ON HE SAYS IT IS COMMON IN THE MUNICIPALSERVICES BUSINESS WORLDWIDE TO DEVELOP TIES TO GOVERNMENT OFFICIALS BY ENTERTAINING AND MAKING POLITICAL DONATIONS THE CHAIRMAN OF THE JEFFERSON PARISH COUNCIL ROBERT EVANS ACKNOWLEDGES RECEIVING POLITICAL CONTRIBUTIONS BUT SAYS THEY DON'T AFFECT HIS DECISIONS HE SAYS THE PARISH HAS PRIVATIZED OTHER SERVICES TO SAVE MONEY AND THAT IT NARROWED ITS CHOICE FOR THE DRINKINGWATER CONTRACT TO THE FRENCH COMPANIES BECAUSE THEY ARE THE CREAM OF THE CROP BUT WAYNE KOFFSKEY THE WATER DEPARTMENT'S CHIEF CHEMIST HAS LED AN EMPLOYEE REVOLT HE SAYS GENERALE DES EAUX'S HOUSTONBASED UNIT PROFESSIONAL SERVICES GROUP INC HAS LOST BUSINESS IN CITIES SUCH AS BILOXI MISS AND PORTERVILLE CALIF BECAUSE OF DISAGREEMENTS WITH LOCAL OFFICIALS ABOUT ISSUES SUCH AS MAINTENANCE PSG PRESIDENT MICHAEL STUMP SAYS THE COMPANY HAS LOST SOME CONTRACTS BUT THAT IN MOST CASES PSG TODAY THE LARGEST CONTRACT WATERSERVICES COMPANY IN THE US SIMPLY WAS OUTBID IN BURBANK IN 1986 HE SAYS PSG LOST A CONTRACT BECAUSE OF POOR PERFORMANCE AND HE SAYS PSG HAS CHANGED A LOT SINCE THEN BURBANK'S WASTE WATER NOW IS HANDLED BY A US AFFILIATE OF LYONNAISE DES EAUX MR EVANS OF THE JEFFERSON PARISH COUNCIL SAYS LOCAL CONTROVERSY HAS BECOME SO HEATED THAT IT'S UNCERTAIN IF THE WATER PRIVATIZATION WILL BE APPROVED OFFICIALS IN INDIANAPOLIS HOWEVER SAY THEY LOOKED CAREFULLY AT THE FRENCH COMPANIES' TRACK RECORDS AND FOUND THAT SUCCESSES OUTWEIGHED ANY COMPLAINTS CONSULTANTS HAD TOLD INDIANAPOLIS OFFICIALS TO EXPECT AS MUCH AS A 22 COST SAVINGS BY PRIVATIZING WASTEWATER TREATMENT BOTH FRENCH COMPANIES OFFERED NEARLY 45 SAVINGS SAYS MAYOR STEPHEN GOLDSMITH LYONNAISE DES EAUX GOT THE NOD AFTER ALLYING ITSELF WITH AN INDIANA COMPANY THAT ALREADY PROVIDES DRINKING WATER TO THE CITY THE FRENCH CONCERN WHICH TENDS TO OPERATE IN THE US THROUGH JOINT VENTURES WITH US COMPANIES PROMISED TO SET UP AN INTERNATIONAL TRAINING CENTER IN INDIANAPOLIS HIRE SOME OF THE LAIDOFF LOCAL WORKERS USE ITS LOCAL VENTURE AS A BASE FOR OTHER REGIONAL BUSINESS AND INVEST 5 OF ITS LOCAL PROFITS IN THE LOCAL ECONOMY SOME GOVERNMENT EXPERTS SAY MORE AND MORE LOCAL GOVERNMENTS EVENTUALLY WON'T JUST HIRE COMPANIES TO RUN LOCAL SERVICES BUT WILL ASK THEM TO BUILD OWN AND RENOVATE WATER AND WASTETREATMENT PLANTS THAT WOULD CREATE MORE OPPORTUNITIES FOR THE FRENCH COMPANIES WHICH ARE BIG ENOUGH TO ABSORB HIGH INVESTMENT COSTS AND SPEND MONEY ON RESEARCH GENERALE DES EAUX FOR EXAMPLE POSTED THE FRANCEQUIVALENT OF ABOUT 25 BILLION IN 1992 REVENUE ONLY ONEFOURTH OF WHICH WAS RELATED TO WATER LYONNAISE DES EAUX REPORTED ABOUT 125 BILLION IN 1992 REVENUE OPERATIONS MANAGEMENT'S MR EVANS LIKES TO JOKE THAT HIS COMPANY'S 60 MILLION IN 1993 REVENUE INCLUDING WATER AND OTHER MUNICIPAL SERVICES COULD GET LOST IN HIS FRENCH RIVAL'S YEAREND ACCOUNTING ADJUSTMENTS 9402250151 940127 LEISURE & ARTS A MANIACAL GARDENER'S GUIDE TO CATALOGORRHEA BY PATTI HAGAN LIKE MOST MANIACAL GARDENERS I SLOG THROUGH THE WINTER KNEEDEEP IN A GARDEN CATALOG BOG I DID NOT HAVE TO SEND FOR DOZENS OF THE 1000PLUS CATALOGS LISTED IN GARDENING BY MAIL HOUGHTON MIFFLIN FOURTH EDITION 400 PAGES 1895 BARBARA BARTON'S LATEST LAST WORD ON GARDEN SOURCERY BUT I DID AND NOW I FEEL OBLIGED TO DO MY BIT FOR THE GROSS NATIONAL TILTH AND BUY MORE PLANTS YEARS OF OVERINDULGENCE IN GARDEN CATALOGS QUALIFY ME TO HELP YOU MASTER GARDEN CATALOGORRHEA IN CATALOG CREATIVE 101 A CATALOGWRITING TUTORIAL OFFERED TO MEMBERS OF THE MAILORDER ASSOCIATION OF NURSERYMEN MAN SEVERAL YEARS BACK PLANT SELLERS WERE ENCOURAGED ADJECTIVALLY TO REALLY LET GO AND GET WILDLY ENTHUSIASTIC EVEN GO WAY OVERBOARD YOU CAN ALWAYS TONE DOWN EXCESSIVE COPY LATER HAPPILY FOR THE AMUSEMENT OF READERS THE EXCESSIVE COPY IN MANY GLOGS BOLD INYOURTYPEFACE CLAIMS IN GIGANTIC EMPHATIC LEAPING LETTERS NEVER GETS TONED DOWN WILL IMPERIAL TREE PEONIES REALLY THROW BLOOMS AS BIG AS A CHILD'S HEAD AND LIVE FOR A CENTURY OR EVEN MORE OWEN NURSERY WHAT ABOUT AMAZING ROOFHIGH CLIMBING TOMATOES' HYPE HYPE HOORAY A SINGLE SLICE COVERS A SLICE OF BREAD A SINGLE PLANT CLIMBS AS TALL AS A HOUSE GARDENERS' CHOICE AND WHAT OF THE BLUE ROSE FULLYDOUBLE ROSETTE FLOWERS IN A SHADE OF DEEP OCEAN BLUE TRUMPETED AS NEW BY BURPEE DON'T EXPECT HUNDREDS OF THORNLESS STEMS FROM A DOZEN OF OUR VIGOROUS BLUE ROSES' BECAUSE BURPEE'S BLUE ROSES ARE NOT ROSES AND NOT BLUE GLOGS THAT PUSH THE GUINNESS BOOK OF WORLD RECORDS GIANTSUPERCOLOSSAL COMPETITIVE SCHOOL OF PLANT & SEED MERCHANDISING MAKE FOR ENTERTAINING READING NOT GARDENING CHALLENGE THE WORLD RECORD OF A 6 1/4 LB TOMATO GC DO YOU A THINOBSESSED AMERICAN GARDENER REALLY WANT TO GROW A FATSO TOMATO WITH AN 18INCH WAIST FORGET GARDENING AS RELAXATION WHEN YOU GENTLE GARDENER ARE EGGED ON TO CHALLENGE THE WORLD RECORD OF A 600 POUND PUMPKIN BY PURCHASING SEEDS WITH THE GENETIC ABILITY TO SET WORLD RECORDS GC BEFORE TILTING YOUR TROWEL TOWARD THE VEGETABLE OLYMPICS PAUSE TO PONDER HOW MANY PECKS OF PUDGY PUMPKINS YOUR PATCH CAN POSSIBLY PUT UP WITH THE PLANT SO DESCRIBED IF YOU ORDER IT WILL IN NO TIME QUITE LIKELY OBLITERATE ALL OTHER VEGETATION IN YOUR PERSONAL PARADISE EXERCISE EXTREME CAUTION IF TEMPTED FOR EXAMPLE BY EASY TO GROW FAST GROWING WILLOWS OWEN THEY WILL SPEEDILY ENGULF YOUR YARD IN MESSY SHADE WHILE SOUNDLESSLY SUCKING UP ALL WATER ON THE PREMISES EASY SLOWGROWING PLANTS ALMOST NEVER GET TOUTED EXAMINE YOUR CONSCIENCE WHEN OWEN DECLARES MASTER GARDENERS HAVE BEEN KNOWN TO PULL THE FEMALE PLANTS FROM THEIR ASPARAGUS PATCH SO AS TO FAVOR THE BIGGER MORE SUCCULENT MALE PLANTS DARE YOU DO THE BOTANICALLY INCORRECT AND ORDER ALL MACHO JERSEY GIANT ASPARAGUS A VARIETY THAT GROWS ONLY MALE PLANTS WILL VEGGIEFEMINISTS INSIST ON LEVELING THE PLANTING FIELD BY CHOOSING TO GROW THE ALLFEMALE GOLDEN ZUCCHINI THAT DOUBLES YIELDS FULLY COGNIZANT THAT ALL FEMALE ZUCCHINI MEANS MORE FRUIT GC MORE ZUCCHINI BY THE IDES OF AUGUST ALL ZUCCHINIGLUTTED GARDENERS ARE CURSING THE SEED TRADE FOR A NEW DEVELOPMENT THAT IS TAKING THE ZUCCHINI IN THE WRONG DIRECTION PRAY FOR THE MUCH LESS FRUITFUL Z GARDENERS WHO WOULD CULTIVATE ECOLOGICALLY NONDESTRUCTIVE PLANTBUYING HABITS WILL USE THIS INVALUABLE BOOK AS A CATALOG CROSSCHECK ON THE PROVENANCE OF BULBS TERRESTRIAL ORCHIDS INSECTIVOROUS PLANTS NORTH AMERICAN WILDFLOWERS IN THE GARDEN TRADE TO BUY OR NOT TO BUY MUST TURN ON WHENCE ULTIMATELY THE PLANTS CAME FROM THE NURSERY PROPAGATION BENCH OR FROM THE WILD BY REFUSING TO BUY SPECIES WHOSE STATUS IS UNCLEAR MS MARSHALL WRITES GARDENERS CAN PROMOTE PROPAGATION AS WELL AS APPROPRIATE HARVESTING METHODS DON'T BE MISLED BY SUCH STANDARD CATALOG BOILERPLATE AS GROWN IN COMMERCIAL NURSERIES FIELD GROWN OR NURSERY GROWN TO DECODE FOR EVERY NURSERYGROWN UNDERSTAND NURSERYGROWNON THEN SUBSTITUTE NURSERYLAUNDERED THIS DECEPTIVE LANGUAGE IS NOT ONLY SANCTIONED BY THE FEDERAL TRADE COMMISSION BUT WAS ACTUALLY COOKED UP FOR ITS 1979 GUIDES FOR THE NURSERY INDUSTRY VIZ IT IS AN UNFAIR TRADE PRACTICE TO SELL OFFER FOR SALE OR DISTRIBUTE INDUSTRY PRODUCTS COLLECTED FROM THE WILD STATE WITHOUT DISCLOSING THAT THEY WERE COLLECTED FROM THE WILD STATE PROVIDED HOWEVER THAT IF COLLECTED PLANTS ARE GROWN IN THE NURSERY ROW FOR AT LEAST ONE GROWING SEASON BEFORE BEING MARKETED SUCH DISCLOSURE IS NOT REQUIRED SO MUCH FOR TRUTHINMARKETING ETHICAL GLOGS TAKE THIS INTO ACCOUNT AND GIVE CUSTOMERS PRECISE DESCRIPTIONS OF PROPAGATION METHODS MARSHALL OBVIOUSLY THE MORAL HORTPERSON SHOULD MAKE EVERY EFFORT TO DO BUSINESS WITH CATALOGS THAT GUARANTEE ALL OUR BULBS ARE GROWN FROM SEED OR TISSUE CULTURE OR HAVE BEEN VEGETATIVELY PROPAGATED ROBINETT BULB FARM OR EXPLAIN NONE OF THE PLANTS WE SELL HAVE BEEN COLLECTED FROM THE WILD YOU WILL NOT FIND THOSE VARIETIES SUCH AS TRILLIUMS AND LADY SLIPPER ORCHIDS THAT ARE VIRTUALLY ALWAYS COLLECTED ALL OF THE WILDFLOWERS AND HARDY FERNS LISTED IN OUR CATALOG ARE NURSERY PROPAGATED THE CROWNSVILLE NURSERY TO CATALOGS OFFERING RARE AND UNUSUAL SPRING FLOWERING BULBS JACQUES AMAND OR THE BEAUTIFUL AND THE RARE GREENLADY GARDENS/THE AJ SKITTONE COLLECTION AND NO INFO ON ULTIMATE SOURCES JUST SAY NO DISTINGUISH BETWEEN MASSMARKET COMMODITIES MERCHANDISERS OF PLANT PRODUCT AND PLANTSPEOPLE WHO PROPAGATE AND GROW THE PLANTS THEY SELL DO NOT LOSE YOUR SELFCONTROL WHEN COZIED UP TO BY SEEDS SUPPLIERS TO MONET AND CHARLES DARWIN THOMPSON & MORGAN KEEP YOUR COOL AROUND THE CATALOG THAT TRIES TO TURN HORTICULTURE INTO FAITH IN GOD FELLOW MAN AND IN THE SPIRITUAL VALUE OF GARDENING AND INCLUDES A MODIFIED LORD'S PRAYER ENDING AMEN THE PARK CREED OF PARK SEED EXCEPT FOR THE OCCASIONAL STATUE OF ST FRANCIS OR MODEST ACTS OF PIETY TOWARD ST GERTRUDE JEKYLL ST LIBERTY HYDE BAILEY OR ST LUTHER BURBANK PRACTICING PLANTSPERSONS REMAIN CAPABLE OF DISTINGUISHING THEIR QUASIRELIGIOUS AGONY IN THE GARDEN FROM THE REAL THING DEVOUT GLOG EVANGELISTS DO NOT CONFUSE THEMSELVES WITH MATTHEW MARK LUKE OR JOHN SEE RELATED LETTER A BLUE ROSE IS BLUE EVEN IF IT'S GREEN WSJ FEB 25 1994 9401270122 YY94 MM02 9402250144 940119 LEISURE & ARTS ON DISK MY EPIPHANY WITH BLUE EYES THOMAS T VOGEL JR NEW YORK SOMETIMES WE GET SO CAUGHT UP WITH THE EXCITEMENT OF BEING PART OF THE GREAT INFORMATION SUPERHIGHWAY ABOUT BUYING A CDROM ABOUT TELLING OUR VCRS TO TAPE A PUBLICTELEVISION PROGRAM ON ONE CHANNEL WHILE WE WATCH THE MENENDEZ BROTHERS ON COURT TV THAT WE DON'T RECOGNIZE THE IMPORTANT MOMENTS IN OUR LIVES THEY'RE NOT ALWAYS SUBTLE BUT FOR ONE REASON OR ANOTHER EVEN IN THIS AGE OF TOTAL RECALL WE MISS THEM BUT MORE AND MORE YOUNG PEOPLE LIKE ME ARE EXPERIENCING WHAT COULD ONLY BE CALLED A FRANK SINATRA MOMENT I WAS STROLLING DOWN 34TH STREET WHICH WAS CROWDED WITH HOLIDAY SHOPPERS I WALKED PAST MACY'S AND WITHOUT THINKING WANDERED INTO A FESTIVELY DECORATED MUSIC STORE IT HAD LUTHER VANDROSS BONO GLORIA ESTEFAN ALL SINGING WITH FRANK SINATRA ON HIS NEW ALBUM DUETS CAPITOL 1299 CURRENTLY NO 16 ON BILLBOARD'S TOP200 ALBUMS CHART INEXPLICABLY I BOUGHT IT I WAS SITTING IN A SUBWAY CAR AND HEADING HOME BEFORE I REALIZED WHAT I HAD DONE IT WAS AN EPIPHANY MUCH LIKE THE MOMENT I FOUND MYSELF SUGGESTING TO A FRIEND THAT SHE BUY A COMPUTER BEFORE THE END OF THE YEAR FOR TAX REASONS YOU MUST UNDERSTAND MY CONFUSION FOR ME FRANK SINATRA REPRESENTED EVERYTHING THAT HAPPENED THIS CENTURY BEFORE I WAS BORN EVERYTHING I NEVER EXPERIENCED AND WOULD NEVER UNDERSTAND LIKE EISENHOWER OR GIRDLES OR THE EXCITEMENT OVER COLOR TELEVISION DIDN'T WE ALWAYS HAVE COLOR TELEVISION FOR THE LONGEST TIME I THOUGHT FRANK SINATRA WAS BLACK AND WHITE NO COLORS NO YOUTH THE KIND OF THING ONLY OLD MEN AT THE LOCAL VETERANS OF FOREIGN WARS CHAPTER AND THEIR BLUEHAIRED WIVES WOULD BUY TICKETS TO SEE WEEKS IN ADVANCE THEY'D STEER THEIR SHIPSIZED GASGUZZLING AUTOMOBILES TO THE SHOW FROM THE CONGESTED SUBURBAN MALL PARKING LOTS WITH NEW YORK NEW YORK BLASTING AT EARPIERCING VOLUMES THEY'D BE WEARING OLD SHINY SUITS AND THEIR BEST TIES THEY'D BE REMINISCING ABOUT BOB HOPE'S PERFORMANCES FOR THE TROOPS SOMEWHERE IN THE SOUTH PACIFIC AND THEY COULD REMEMBER THE DAY JFK WAS KILLED FORGET THAT THEY COULD REMEMBER WHAT THEY WERE DOING THE DAY PEARL HARBOR WAS BOMBED THERE ARE DOZENS OF TIMELIFE BOOKS DEDICATED TO SUMMARIZING THE IMPORTANT HISTORICAL EVENTS IN THE LIVES OF FRANK SINATRA FANS FRANK SINATRA FANS BELONG TO THE ROTARY CLUB AND WEAR TIE CLIPS AT SOME POINT IN THEIR LIVES POLYESTER SUITS WERE ACCEPTABLE BUT FEMALE MANAGERS WERE NOT FOR THEM CIGARETTES MAY HAVE SMELLED BAD BUT THEY DIDN'T KILL YOU AND NEITHER DID NUCLEAR ENERGY ELECTRIC POWER LINES OR FRENCH FRIES THEY DIDN'T GROW UP KNOWING ABOUT COUCH POTATOES OR FOR THAT MATTER SPANDEX SCANDAL FOR THEM WAS A MINISKIRT NOT MADONNA ACTING OUT SEXUAL FANTASIES IN FRONT OF MILLIONS OF STRANGERS I DON'T DRESS LIKE THEM I DON'T ACT LIKE THEM I DON'T DRINK WHAT THEY DRINK FRANK SINATRA FANS AND I HAVE NOTHING IN COMMON MUSIC IS THAT WAY IT IDENTIFIES GENERATIONS YOU ARE WHAT YOU LISTEN TO THAT'S WHY I'M SO TERRIFIED TO BE THE OWNER OF A FRANK SINATRA CD IT'S LIKE LEARNING HOW TO MIX A MARTINI OR PUTT IT'S LIKE GOING TO THE DEALERSHIP AND RECOGNIZING THE PRACTICALITY OF AN OLDSMOBILE OR EVEN WORSE A STATION WAGON IT'S LIKE WEARING TIES EVERY DAY AND BUYING AN APPOINTMENT BOOK IT'S LIKE TRADING IN YOUR BACKPACK FOR A BRIEFCASE IT'S LIKE HAVING JUST ONE DRINK WHEN SOMEONE INVITES YOU TO HAVE A DRINK IT'S LIKE GOING TO WORK EVERY DAY AND ONE DAY FINDING YOURSELF SAYING YOU HAVE TO LEARN HOW TO NETWORK IT'S LIKE FINALLY PAYING OFF ALL OF YOUR STUDENT LOAN IT'S LIKE LEARNING WHAT IRA MEANS WHY POINTS ARE NOT JUST BAD MARKS ON A LICENSE BUT COSTLY FOR A MORTGAGE AS WELL AND WORRYING ABOUT YOUR CREDIT RECORD IT'S DISCOVERING HOW YOU CAN PUT A YEAR'S WORTH OF RELAXATION INTO A TWOWEEK VACATION IT'S GOING TO BED AT THE SAME TIME AND GETTING UP AT THE SAME TIME EVERY DAY OLD BLUE EYES SCARES THE BEJEEZUS OUT OF ME BUT HERE I AM LISTENING TO FRANK SINATRA U2'S BONO SINGS I'VE GOT YOU UNDER MY SKIN WITH THE CHAIRMAN OF THE BOARD IT'S LIKE WATCHING MICK JAGGER DANCING A POLKA WITH A MARTINI IN HIS HAND I CAN'T HELP IT I HAVEN'T EVEN HIT 30 YET AND I AM GETTING OLD I AM TERRIFIED THAT I AM REACHING THE POINT WHERE I MIGHT WITHOUT THINKING MENTION BOB DYLAN AND SINATRA IN THE SAME SENTENCE BUT IT ISN'T ALL BAD ESPECIALLY IF YOU COMPARE IT TO MY FIRST SIP OF SCOTCH A TASTE FOR SCOTCH IS ACQUIRED MY DAD ONCE SAID I THINK THE SAME GOES FOR SINATRA SO I'M NOT BREAKING OUT SCOTCH AND THE SINATRA CD EVERY TIME FRIENDS STOP BY I'M NOT READY FOR THAT BUT I DO SAMPLE THE CD ONCE IN A WHILE I DON'T KNOW HOW TO DANCE TO IT BUT IT'S GOOD BACKGROUND MUSIC WHEN I'M READING THE SUNDAY PAPER WHAT'S MORE IN UNDER MY SKIN SINATRA ACTUALLY SOUNDS BETTER THAN BONO WHO IS ONE OF MY FAVORITE HIPSTERS BUT SOUNDS LIKE HE IS MOANING FOR MOST OF THE SONG BESIDES I UNDERSTAND NONE OF THE ARTISTS ACTUALLY SANG WITH SINATRA IN THE STUDIO THEY SANG OVER SPECIAL PHONE LINES I CAN RELATE TO THAT DUETS ON AN ANSWERING MACHINE COOL MR VOGEL WRITES THE JOURNAL'S CREDIT MARKETS COLUMN SEE RELATED LETTERS OLD BLUE EYES BELONGS TO US SONNY WSJ FEB 25 1994 9401190109 YY94 MM02 9402240178 940224 MICHAEL BAKER SAYS WEATHER WILL HURT FIRSTQUARTER RESULTS PITTSBURGH MICHAEL BAKER CORP A CONSTRUCTION AND ENGINEERING CONCERN SAID FIERCE WINTER WEATHER HAS PUMMELED SOME OF THE COMPANY'S OPERATIONS AND WILL HAVE AN ADVERSE IMPACT ON THE FIRST QUARTER IN AN INTERVIEW RICHARD L SHAW CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE CURRENT QUARTER'S WEATHER WOES COME ON THE HEELS OF A TOUGH FOURTH QUARTER IN THAT QUARTER MICHAEL BAKER RECORDED A 13 MILLION RESTRUCTURING CHARGE STEMMING FROM THE COMPANY'S DECISION TO LEAVE CERTAIN CONSTRUCTION AND TELECOMMUNICATIONS BUSINESSES THE COMPANY HAS SAID IT EXPECTS A LOSS FOR BOTH THE QUARTER AND THE YEAR GETTING MORE SPECIFIC MR SHAW SAID THE COMPANY EXPECTS TO REPORT FOR THE FOURTH QUARTER A NET LOSS OF ABOUT 12 MILLION TO 13 MILLION OR ABOUT 145 TO 150 A SHARE ON CONTRACT REVENUE OF ABOUT 122 MILLION FOR THE YEAR THE COMPANY EXPECTS TO REPORT A NET LOSS OF ABOUT 15 MILLION OR ABOUT 181 A SHARE ON CONTRACT REVENUE OF 430 MILLION TO 435 MILLION IN THE YEAREARLIER FOURTH QUARTER THE COMPANY REPORTED NET INCOME OF 16 MILLION OR 20 CENTS A SHARE ON REVENUE OF 996 MILLION FOR 1992 MICHAEL BAKER REPORTED NET INCOME OF 44 MILLION OR 67 CENTS A SHARE ON REVENUE OF 3558 MILLION THE COMPANY EXPECTS TO REPORT ITS FOURTHQUARTER AND YEAREND EARNINGS TODAY MR SHAW SAID THE COMPANY HAS HAD TO HALT PROJECTS BECAUSE OF THE WEATHER ESPECIALLY IN WESTERN PENNSYLVANIA THE WEATHER HAS BEEN A DISASTER SAID MR SHAW TWO UNITS HAVE SIGNIFICANT OPERATIONS AROUND HERE AND AS MIGHT BE SUSPECTED THE WEATHER HAS SHUT THE CONSTRUCTION BUSINESS DOWN WHICH ISN'T REALLY NORMAL FOR US FOR THE PAST 10 YEARS WE HAVE WORKED RIGHT THROUGH THE WINTER I CAN ASSURE YOU WE'LL SEE SOME IMPACT IN THE FIRST QUARTER MR SHAW SAID HE BELIEVED CONSTRUCTION PROJECTS STYMIED BY THE WEATHER WOULD BE UP AND RUNNING AGAIN BY MARCH 1 DESPITE THE DIFFICULT EARNINGS PICTURE MR SHAW SAID RECORD BACKLOG ABOUT 588 MILLION AT THE END OF 1993 ALONG WITH THE RECENTLY ANNOUNCED RESTRUCTURING SHOULD BOLSTER THE COMPANY'S PERFORMANCE THROUGH THE REST OF 1994 9402240177 940224 TECHNOLOGY & SCIENCE IN THE LAB PORTABLE SENSORS MAKE SCIENTIFIC SENSE BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL SHADES OF STAR TREK AT LEAST ONCE OR SO IT SEEMS IN EACH EPISODE OF THE MUCHRECYCLED TELEVISION SERIES LEONARD MCCOY THE CROTCHETY PHYSICIAN ABOARD THE USS ENTERPRISE IS CALLED UPON TO TREAT AN AILING CREW MEMBER INVARIABLY THE GOOD DOCTOR PRODUCES A SMALL HANDHELD SENSOR PASSES IT OVER THE PATIENT'S CHEST AND PROMPTLY PRONOUNCES THAT YEOMAN SMITH HAS COME DOWN WITH FILL IN THE INTERPLANETARY ILLNESS OF YOUR CHOICE NEAT THINGS THOSE SENSORS AND PERHAPS NOT AS FARFETCHED AS THE SHOW'S CREATORS MIGHT HAVE IMAGINED RESEARCHERS AT GEORGIA INSTITUTE OF TECHNOLOGY AND A COMPANY CALLED PHOTONIC SENSOR SYSTEMS BOTH IN ATLANTA ARE DEVELOPING SOCALLED MICROSENSORS DEVICES NOT MUCH BIGGER THAN A PACK OF CIGARETTES THAT MAY ENABLE PHYSICIANS TO DIAGNOSE INFLUENZA FOR INSTANCE ALMOST IMMEDIATELY OR ALLOW A CITY TO QUICKLY LEARN WHAT CONTAMINANTS ARE IN ITS DRINKING WATER OR HELP FARMERS DECIDE WITHIN MINUTES WHETHER TO REFERTILIZE THEIR FIELDS ALL WITHOUT SENDING OFF SAMPLES OF BLOOD WATER OR SOIL TO A LABORATORY AND THEN WAITING HOURS OR DAYS FOR THE RESULTS THE ACCURACY WILL BE THE SAME SAYS JOHN G EDWARDS PRESIDENT OF PHOTONIC SENSOR BUT WE'LL BE ABLE TO GIVE YOU THE ANSWER ON THE SPOT AND WITH SOMETHING YOU CAN HOLD IN YOUR HAND SENSORS OF COURSE PLAY A CRITICAL ROLE IN ANY NUMBER OF INDUSTRIES FROM AGRICULTURE TO ZINCOGRAPHY THE ENGRAVING OF ZINC PLATES IN MANY OF THOSE FIELDS LABORATORY SUPPORT IS MORE THAN ADEQUATE IN SOME HOWEVER DEMAND IS GROWING FOR DEVICES THAT CAN MEASURE AND IDENTIFY POLLUTANTS OR VIRUSES ON SITE WITH NO DELAYS AND WITH THE PRECISION OF A LAB BEING ABLE TO GIVE PATIENTS AN IMMEDIATE ANSWER AS TO WHETHER THEY HAVE A SEXUALLY TRANSMITTED DISEASE COULD HELP EASE THE PROBLEM OF PATIENTS WHO NEVER RETURN TO CLINICS FOR TEST RESULTS IN ATLANTA PHOTONIC SENSOR PLANS TO ADDRESS THE DEMAND BY MEANS OF A HARTMAN INTERFEROMETER DEVELOPED BY GEORGIA TECH SCIENTIST NILE HARTMAN THE DEVICE CAN BE THOUGHT OF AS A CAKE WITH TWO LAYERS TOPPED BY A THIN FROSTING THE BOTTOM LAYER SUPPORTS THE APPARATUS THE TOP LAYER IS A CHANNEL THROUGH WHICH TWO BEAMS OF LIGHT PASS ONE BEAM IS USED AS A REFERENCE THE SECOND IS AIMED SO THAT PART OF IT COMES INTO CONTACT WITH THE FROSTING WHICH ALTERS ITS SPEED BY MAKING THE FROSTING SENSITIVE TO SAY A PESTICIDE AND THEN COMPARING THE ALTERED BEAM WITH THE REFERENCE BEAM LOCAL OFFICIALS COULD TELL IMMEDIATELY WHETHER THAT POLLUTANT WAS IN THEIR WATER SUPPLY FITTING THE CAKE IN A DEVICE THE SIZE OF A HANDHELD CALCULATOR IS ACCOMPLISHED BY MEANS OF INTEGRATED OPTICS A TECHNOLOGY USED PRIMARILY IN TELECOMMUNICATIONS AS WITH ELECTRONIC CIRCUITS THAT CAN BE PLACED ON A SILICON CHIP INTEGRATED OPTICS ALLOWS OPTICAL DEVICES LIKE MR HARTMAN'S TO BE REDUCED TO THE SIZE OF A DIME INDEED THE FROSTING ON PHOTONIC SENSOR'S CAKE IS LESS THAN ONEMILLIONTH OF AN INCH THICK THE EARLIEST USE OF THESE MICROSENSORS WILL COME IN ENVIRONMENTAL MONITORING AND TESTING SAYS MR EDWARDS AT PHOTONIC SENSOR ALREADY THE COMPANY IS WORKING WITH ISCO INC A MAKER OF SCIENTIFIC AND ENVIRONMENTAL INSTRUMENTS BASED IN LINCOLN NEB TO DEVELOP A SMALL ONSITE DEVICE TO MEASURE POLLUTANTS IN WATER WE THINK ONSITE SENSORS ARE THE WAVE OF THE FUTURE SAYS RALPH SETTER DIRECTOR OF ENGINEERING IN ISCO'S ENVIRONMENTAL DIVISION INSTALLING A MICROSENSOR IN THE FIELD HE EXPLAINS WOULD TELL YOU WHAT POLLUTANTS ARE THERE RIGHT NOW AND ALLOW YOU TO TAKE WHATEVER STEPS YOU WANT MOREOVER HE SAYS THE TIME AND COST INVOLVED ANYWHERE FROM 10 TO 100 IN TAKING WATER SAMPLES BACK TO A LABORATORY WOULD BE ELIMINATED BOTH PHOTONIC SENSOR AND ISCO PLAN TO TEST A DEVICE BY THE END OF THIS YEAR IF ALL GOES WELL PRODUCTION COULD BEGIN IN THE SUMMER OF 1995 WITH MICROSENSORS HITTING THE MARKET BEFORE YEAR END THE COST PROBABLY SEVERAL HUNDRED DOLLARS EACH MR EDWARDS ESTIMATES FURTHER DOWN THE ROAD PHOTONIC SENSOR PLANS TO ENTER THE MEDICAL MARKET WITH SOCALLED BIOSENSORS HANDHELD DEVICES THAT COULD BE USED IN HOSPITALS OR DOCTORS' OFFICES WORKING WITH THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA THE COMPANY IS CURRENTLY DEVELOPING SENSORS THAT AMONG OTHER USES COULD SCREEN PREGNANT WOMEN AND NEWBORNS FOR INFECTION AND TEST FOR THE FLU THE LATTER TEST ILLUSTRATES SOME OF THE CHALLENGES IN BUILDING SENSORS ON A MICROSCOPIC SCALE THE CDC IS PROVIDING RESEARCHERS AT GEORGIA TECH WITH ANTIBODIES TO A FLU VIRUS THOSE ANTIBODIES ARE THE FROSTING APPLIED TO MR HARTMAN'S INVENTION IN THEORY THEY WOULD BIND WITH A FLU VIRUS IF PRESENT IN A SAMPLE OF MUCUS FROM A PATIENT AND ALTER THE SPEED OF THE LIGHT PASSING THROUGH THE SENSOR BUT GLUING THOSE ANTIBODIES IN PLACE SAYS MR EDWARDS INVOLVES SOMETHING MORE THAN A BOTTLE OF ELMER'S AMONG OTHER WORRIES YOU HAVE TO MAKE SURE THE ANTIBODIES DON'T DIE HE SAYS INDEED MR EDWARDS ACKNOWLEDGES THAT HIS COMPANY STILL MUST CLEAR SEVERAL HURDLES WHILE PHOTONIC SENSOR'S EQUIPMENT AND IDEAS WORK QUITE NICELY IN THE CONFINES OF A WARM AND WELLLIGHTED LAB ON GEORGIA TECH'S CAMPUS WHAT HAPPENS WHEN WE MOVE INTO THE HOSTILE WORLD HE WONDERS ALOUD ACIDS WASTE WATER SILT FREEZING TEMPERATURES THERE'S LOTS OF GUNKY THINGS OUT THERE STILL HE SAYS HE BELIEVES THE COMPANY'S GEAR WILL PERFORM WELL NOTING THAT ANY OTHER SENSOR HAS TO FACE THESE PROBLEMS TOO THE COMPANY HAS YET TO SET UP A MANUFACTURING OPERATION OR TO OBTAIN THE FINANCING NEEDED TO DO THAT PHOTONIC SENSOR HAS SURVIVED ON ABOUT 150000 IN FEDERAL GRANTS AND ABOUT 150000 OF ITS PARTNERS' OWN MONEY THE COMPANY'S NEW RELATIONSHIP WITH ISCO HOWEVER PROMISES TO PROVIDE A BIGGER FINANCIAL CUSHION THERE ARE ALSO SOME LIMITATIONS ON THE TECHNOLOGY FOR INSTANCE A FROSTING DESIGNED TO HELP DETECT A FLU VIRUS WILL DETECT ONLY THAT VIRUS AND NOTHING MORE WE'VE GOT TO KNOW AHEAD OF TIME WHAT WE'RE LOOKING FOR MR EDWARDS SAYS STILL RESEARCHERS HAVE ALREADY DEVELOPED WAYS TO PLACE DOZENS OF DIFFERENT FROSTINGS ON TOP OF A SINGLE DEVICE GIVING THESE MICROSENSORS GREATER FLEXIBILITY IT'S STILL NOT 'STAR TREK' SAYS MR EDWARDS BUT IT'S A FIRST STEP TOWARD DOING A LOT OF THINGS INSTANTLY 9402240176 940224 CREDIT MARKETS TREASURY YIELDS SURGE AS WEAK DEMAND AT SALE OF US TWOYEAR NOTES SPURS RENEWED SELLING BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK YIELDS ON US TREASURYS ROSE SHARPLY YESTERDAY AS WEAK DEMAND AT THE GOVERNMENT'S AUCTION OF TWOYEAR NOTES SENT PRICES INTO A RENEWED TAILSPIN THE PRICE DECLINES WERE THE SIXTH IN THE LAST SEVEN TRADING SESSIONS AND WIPED OUT TUESDAY'S GAINS WITH THE MARKET TURNED BEARISH IN RECENT WEEKS MANY INVESTORS HAVE PROVEN UNWILLING TO BUY BONDS WHEN THEY BELIEVE THEY CAN FETCH THEM MORE CHEAPLY LATER AT THE AUCTION THE TREASURY DEPARTMENT AWARDED ITS 17 BILLION OF NEW TWOYEAR NOTES AT A YIELD OF 466 JUST HOURS BEFORE THE 1 PM EST AUCTION TRADERS PREDICTED THE ISSUE WOULD YIELD 464 OR 465 AND ON TUESDAY THE TWOYEAR NOTES YIELDED 458 IN WHENISSUED TRADING BY LATE YESTERDAY THE ISSUE TOOK ANOTHER HIT IT YIELDED 468 IN WHENISSUED TRADING THE YIELD WAS THE HIGHEST SINCE THE 471 DEMANDED BY INVESTORS AT THE TWOYEAR NOTE AUCTION ON DEC 22 1992 IN THE WAKE OF FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S HINTS TUESDAY THAT SHORTTERM INTEREST RATES WILL RISE FURTHER IN PREEMPTIVE STRIKES AGAINST INFLATION THERE WAS LITTLE REASON FOR INVESTORS TO STEP INTO THE MARKET TRADERS AND ANALYSTS SAID WE'RE HAVING A HARD TIME IDENTIFYING BUYERS SAID PETER HIRSCH MANAGER OF GOVERNMENTSECURITIES TRADING AT SALOMON BROTHERS INC THE FED'S FIRST TIGHTENING CAME FEB 4 WHEN IT RAISED THE FEDERALFUNDS RATE THE RATE FOR OVERNIGHT LOANS BETWEEN BANKS TO 325 FROM 3 DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC SAID EVERYBODY IS WAITING FOR THE SECOND SHOE TO DROP THE MARKET'S GOT THE JITTERS WILLIAM SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC SAID A HIGHER YIELD ISN'T UNEXPECTED GIVEN THAT WE ARE BIDDING FOR PAPER WITH THE NOTICE THAT A TIGHTENING CAN OCCUR AT ANY POINT IN TIME INVESTORS ARE DEMANDING A HIGHER YIELD PREMIUM FOR THIS UNCERTAINTY THERE'S A GREAT DEAL OF ANXIETY PRICES OF LONGERTERM ISSUES WERE DRAGGED DOWN IN SYMPATHY WITH THE LOSSES ON SHORTERTERM ONES WHICH ARE THE ONES MOST DIRECTLY AFFECTED BY FED TIGHTENING THE PRICE OF THE BENCHMARK 30YEAR TREASURY FELL 5/8 POINT OR 625 FOR EACH 1000 IN FACE VALUE TO 94 25/32 AT THAT PRICE IT YIELDED 665 THE HIGHEST SINCE JULY THE NEXT HARDEST HIT WAS THE 10YEAR NOTE ITS PRICE TUMBLED NEARLY 9/16 TO 98 2/32 FOR A YIELD OF 612 REFLECTING THE LACK OF AGGRESSIVE BIDDING AT THE TWOYEAR NOTE AUCTION THE BIDTOCOVER RATIO WAS 252TO1 AND NONCOMPETITIVE BIDS WERE 796 MILLION THE BIDTOCOVER RATIO IS A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE ACCEPTED NONCOMPETITIVE BIDS TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET DEALER COMMUNITY AT THE LAST TWOYEAR NOTE AUCTION IN JANUARY THE 17 BILLION OFFERING WAS SOLD AT A YIELD OF 411 THE ISSUE DREW A BIDTOCOVER RATIO OF 285TO1 AND NONCOMPETITIVE BIDS OF 822 MILLION OVER THE LAST 12 TWOYEAR NOTE AUCTIONS THE AVERAGE BIDTOCOVER RATIO HAS BEEN 271TO1 AND NONCOMPETITIVE BIDS HAVE AVERAGED 810 MILLION TO MAKE MATTERS WORSE THE MARKET FACES A COMMERCE DEPARTMENT REPORT ON JANUARY DURABLEGOODS ORDERS TODAY WHICH COULD ADD TO INFLATION FEARS MOST ECONOMISTS ARE CALLING FOR AN INCREASE OF 1 IF THAT PROVES ACCURATE IT WOULD BE THE FIRST TIME SINCE 1987 THAT DURABLEGOODS ORDERS HAVE RISEN SIX MONTHS IN A ROW ALSO UNNERVING THE MARKET IS THE FACT THAT MORE ISSUANCE IS ON THE WAY THE TREASURY DEPARTMENT IS SLATED TO SELL 11 BILLION OF FIVEYEAR NOTES TODAY AND TOMORROW WILL ANNOUNCE NEXT WEEK'S SALE OF ONEYEAR BILLS IN WHENISSUED TRADING LATE YESTERDAY THE FIVEYEAR NOTE YIELDED 560 UP FROM 551 LATE TUESDAY SOME ANALYSTS SAID THE YIELD ON THE TWOYEAR NOTE WAS NOW HIGH ENOUGH THAT A SECOND FED TIGHTENING IS PRICED IN BUT OTHERS DISAGREE THEY CONTEND THAT THE BIG DROP IN PRICES AND ACCOMPANYING RISE IN YIELDS STILL MAY NOT BE ENOUGH TO PERSUADE INVESTORS TO PUT EXTRA CASH TO WORK THERE'S SUCH A FEAR ON THE PART OF INVESTORS THEY KNOW THE YIELD LEVELS ARE A LOT BETTER BUT THE LONGER THEY'VE WAITED THE BETTER THEY'VE GOTTEN SO WHY INVEST TODAY SAID DAVID ADER AN ANALYST FOR TECHNICAL DATA CORP IN BOSTON IT'S BEEN FIVE YEARS SINCE THE FED WAS IN A TIGHTENING MODE AND THE MARKET IS REACCLIMATING ITSELF TO THIS ENVIRONMENT SAID DOUG SCHINDEWOLF A MONEYMARKET ECONOMIST AT SMITH BARNEY SHEARSON INC HERE ARE DETAILS OF THE TWOYEAR NOTE AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED FEB 28 AND MATURE FEB 29 1996 AFTER SEVERAL SESSIONS ON THE SIDELINES ISSUERS JUMPED BACK INTO THE CORPORATE BOND MARKET YESTERDAY THEY WERE LED BY THE ASIAN DEVELOPMENT BANK WHICH SOLD 750 MILLION OF DEBT IN ITS FIRST GLOBAL OFFERING ALSO SELLING DEBT WERE NATIONAL CITY CORP SELLING 250 MILLION HOUSEHOLD INTERNATIONAL BV A UNIT OF HOUSEHOLD INTERNATIONAL INC SELLING 175 MILLION AND ARIZONA PUBLIC SERVICE CO A UNIT OF PINNACLE WEST CAPITAL CORP SELLING 100 MILLION TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY LIGHT AS PRICES DECLINED WITH SPREADS OVER SIMILARMATURITY TREASURYS WIDENING BY ABOUT 005 PERCENTAGE POINT TRADING ALSO WAS LIGHT IN THE JUNK BOND MARKET WHERE PRICES FELL MORE THAN 1/4 POINT THE ASIAN DEVELOPMENT BANK IS A MULTIGOVERNMENTAL AGENCY BASED IN THE PHILIPPINES THE BANK WHOSE OUTSTANDING SENIOR DEBT IS RATED TRIPLEA YESTERDAY SOLD 10YEAR 6125 GLOBAL NOTES AT 99117 TO YIELD 6245 THE ISSUE SOLD THROUGH JOINT LEAD MANAGERS SALOMON BROTHERS INC AND IBJ INTERNATIONAL PLC WAS PRICED 018 PERCENTAGE POINT ABOVE YIELDS OF US TREASURYS A TIGHT SPREAD FAVORING THE BANK ACCORDING TO SEVERAL MARKET PLAYERS OTHER GLOBAL DEALS SUCH AS THE PEOPLE'S REPUBLIC OF CHINA'S RECENT OFFERING ATTRACTED MORE US INVESTORS BECAUSE THEY OFFERED HIGHER YIELDS US INVESTORS CAN FIND HIGHER YIELDS WITH 10YEAR US AGENCY PAPER WHICH TRADES WITH A YIELD AROUND 025 PERCENTAGE POINT ABOVE TREASURYS ONE SYNDICATE OFFICIAL SAID BUT ASIAN INVESTORS ARE COMFORTABLE WITH THE ASIAN DEVELOPMENT BANK'S NAME AND LESS FAMILIAR WITH US AGENCIES MR FALL SAID THE BANK'S GLOBAL BOND OFFERS LESS YIELD THAN YANKEE NOTES IT SOLD IN 1992 A YANKEE BOND IS DEBT SOLD BY A FOREIGN ENTITY IN THE US MARKET THE 10YEAR 300 MILLION YANKEE ISSUE WAS SOLD AT 99988 TO YIELD 633 OR 033 PERCENTAGE POINT ABOVE TREASURYS THE NOTES CURRENTLY TRADE WITH A YIELD SPREAD ABOUT 031 POINT ABOVE TREASURYS MR FALL SAID THAT THE NEW ISSUE TRADED WITH A 017 POINT YIELD SPREAD ABOVE TREASURYS LATE YESTERDAY HOWEVER OTHER TRADERS SAID THEY SAW THE PAPER TRADING AT A 019 TO 020 POINT YIELD SPREAD ABOVE TREASURYS PRICES OF MUNICIPAL BONDS WERE DRAGGED DOWN BY ANOTHER ROUND OF SELLING YESTERDAY AND THEY FINISHED THE DAY'S LIGHT TRADING WITH LOSSES OF AS MUCH AS A POINT IN LATE TRADING THE REEDY CREEK IMPROVEMENT DISTRICT OF FLORIDA'S 500 BONDS OF 2019 WERE ABOUT A POINT LOWER AT 91 YIELDING 559 THE MUNI MARKET'S FORTUNES SO FAR THIS YEAR ARE FAR DIFFERENT FROM ANTICIPATED WITH FEDERAL INCOMETAX INCREASES IN PLACE AND ISSUANCE FINALLY COOLING TAXEXEMPT BONDS WERE EXPECTED TO KICK OFF 1994 WITH AN IMPRESSIVE PERFORMANCE MARKET PARTICIPANTS SAY THE LEVEL OF BEARISH SENTIMENT ABOUT MUNIS IS CLEARLY EVIDENCED BY NUMEROUS LISTS OF BONDS THAT ARE FOR SALE WHICH CONTINUED TO APPEAR YESTERDAY AMONG MUNI OFFERINGS PRICED YESTERDAY WAS THE HAWAII HOUSING FINANCE & DEVELOPMENT CORP'S 2705 MILLION OF SINGLEFAMILY MORTGAGE PURCHASE REVENUE BONDS A DEAN WITTER REYNOLDS INC GROUP GAVE THE ISSUE YIELDS THAT RANGE FROM 400 IN 1997 TO 595 IN 2026 INCLUDED IN THE ISSUE ARE 1833 MILLION OF 1994 SERIES A BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THERE ARE ALSO 873 MILLION OF NONAMT 1994 SERIES B BONDS PRICES OF MORTGAGE SECURITIES SLID ALONG WITH THOSE OF TREASURYS MORTGAGE PLAYERS BOTH TRADERS AND INVESTORS HAVEN'T BEEN TAKING ON BIG POSITIONS EITHER PRECIPITOUS PRICE DROPS OR THE WAIT FOR A BETTER UNDERSTANDING OF ECONOMIC UNDERPINNINGS SPECIFICALLY RATES HAVE KEPT THEM ON HOLD THE 8 MORTGAGES HOWEVER WERE OFF ONLY 3/32 TO 6/32 AT THE END OF THE DAY AND 9 SECURITIES WERE ONLY OFF 1/32 TO 3/32 IF THE TREASURY MARKET CONTINUES TO EXPERIENCE MORE SELLING MORE INSTITUTIONAL INVESTORS ARE LIKELY TO TURN TO MORTGAGES IN THE DAYS AHEAD TRADERS SAY BUT WITH THE LONGTERM DIRECTION OF RATES STILL UNCLEAR MOST PORTFOLIO CHIEFS ARE SLOW TO SHIFT ALLOCATIONS THEY SAY LESLIE SCISM CONTRIBUTED TO THIS ARTICLE 9402240175 940224 HOLNAM INC MERGER DUNDEE MICH HOLNAM INC SAID IT COMPLETED A MERGER WITH ITS MAJORITY STOCKHOLDER HOLDERBANK FINANCIERE GLARIS LTD OF SWITZERLAND HOLDERBANK PAID MINORITY SHAREHOLDERS 765 FOR EACH COMMON SHARE HELD INCREASING ITS EQUITY OWNERSHIP OF HOLNAM TO 100 HOLNAM INC PRODUCES CEMENT AND CONSTRUCTION MATERIALS 9402240174 940224 FRUIT OF THE LOOM BUYS BUILDING CHICAGO FRUIT OF THE LOOM INC SAID IT BOUGHT A 565000SQUAREFOOT FACILITY IN CLINTON SC TO DISTRIBUTE HOSIERY AND OTHER PRODUCTS TERMS WEREN'T DISCLOSED THE COMPANY SAID THE FACILITY WILL BEGIN OPERATION BY MARCH 1 AND EMPLOY 125 PEOPLE BY THE END OF THE YEAR THE COMPANY BOUGHT THE CENTER FROM MCGREGOR CORP A UNIT OF ASTRUM INTERNATIONAL CORP 9402240173 940223 TEXAS JOURNAL LETTERS TO THE EDITOR WHAT'S A WONK I APPRECIATED MICHAEL ALLEN'S STORY IN YOUR FEB 16 EDITION THE WONK OF ALL WONKS SHARP OFFERS MASTER PLAN HOWEVER AFTER SENDING MY EXTENSIVE THINK TANK SCRAMBLING TO THE DICTIONARY FOR THE MEANING OF THE WORD WONK THEY HAVE JUST REPORTED BACK TO ME THEIR FAILURE TO FIND THE WORD THEREIN I HAVE NOW ASKED MY RESEARCH STAFF TO DETERMINE WHETHER THE PUBLIC APPROVES OR DISAPPROVES OF WONKS IF IT TURNS OUT THAT THE PUBLIC APPROVES PLEASE DISREGARD THIS LETTER 9402240172 940224 TRACOR UNIT RECEIVES CONTRACT ROCKVILLE MD TRACOR INC'S VITRO CORP UNIT SAID IT RECEIVED A FIVEYEAR CONTRACT FROM THE NAVAL SEA SYSTEMS COMMAND TO PROVIDE ENGINEERING AND SYSTEMSINTEGRATION SUPPORT FOR ANTIAIR WARFARE SYSTEMS ABOARD CERTAIN NAVY SHIPS THE COMPANY SAID THE CONTRACT HAS A POTENTIAL VALUE OF 39 MILLION 9402240171 940224 OWENSILLINOIS INC TO BUY PLANT TOLEDO OHIO OWENSILLINOIS INC AND MILLER BREWING CO SAID THEY REACHED AN AGREEMENT FOR OWENSILLINOIS TO PURCHASE MILLER'S GLASS CONTAINER MANUFACTURING PLANT IN SENNETT NY TERMS WEREN'T DISCLOSED THE SALE IS EXPECTED TO BE COMPLETED IN THE CURRENT QUARTER SUBJECT TO REGULATORY APPROVALS MILLER BREWING IS A UNIT OF PHILIP MORRIS COS 9402240170 940224 FOREIGN EXCHANGE DOLLAR IS MIXED IN RUMORRIFE TRADING AHEAD OF WEEKEND'S PARLEY OF G7 AIDES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS MIXED LATE YESTERDAY IN A RUMORDRIVEN MARKET NERVOUS ABOUT THE OUTCOME OF THIS WEEKEND'S MEETING OF FINANCE MINISTERS FROM THE GROUP OF SEVEN MAJOR INDUSTRIALIZED COUNTRIES AND THINNED BY YET ANOTHER NEW YORK WINTER STORM LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17284 MARKS UP FROM 17235 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10575 YEN UP A BIT FROM 10565 YEN STERLING WAS TRADING AT 14785 DOWN SLIGHTLY FROM 14790 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10595 YEN AND AT 17284 MARKS RUMORS AT MIDMORNING IN EUROPE THAT EITHER THE US OR GERMANY HAD REACHED AN UNDERSTANDING WITH JAPAN THAT THE DOLLAR SHOULD TRADE AT AROUND 110 YEN PROMPTED A SHARP IF SHORTLIVED RALLY ABOUT THE SAME TIME TRADERS SAID THERE WAS UNFOUNDED TALK THAT THE BANK OF ENGLAND HAD INTERVENED TO BUY DOLLARS ON BEHALF OF THE BANK OF JAPAN THE RUMORS HELPED MOVE THE DOLLAR TO INTRADAY HIGHS OF 10655 YEN AND 17339 MARKS BY LATE IN THE EUROPEAN MORNING INDICATING THAT BOTH THE MARK AND YEN ARE CONTINUING TO MOVE IN TANDEM AGAINST THE US CURRENCY BUT WITH BOTH RUMORS QUICKLY DISCOUNTED THE MARKET RETREATED AND PUSHED THE DOLLAR TOWARD THE BOTTOM OF ITS RECENT NARROW RANGES TRADERS NOTED THAT THE MARKET CONTINUES TO FOCUS ON USJAPAN TRADE FISSURES AHEAD OF THE G7'S WEEKEND MEETING NEAR FRANKFURT THERE WERE A LOT OF RUMORS AND SUGGESTIONS THAT THE JAPANESE WILL COMPLY WITH A NUMERICAL TRADE TARGET AND JUST AS MANY RUMORS AND SUGGESTIONS THAT THEY WON'T SAID ROBERT RYAN MANAGER OF CORPORATE FOREIGN EXCHANGE FOR THE BANK OF NEW YORK THE FACT OF THE MATTER IS THERE ARE PEOPLE WITH LONG DOLLAR POSITIONS WHO ARE CHOKING MR RYAN SAID THE RUMORS ARE SELFFULFILLING BECAUSE THEY ALLOW TRADERS TO GET OUT OF THEIR POSITIONS HE ADDED THAT WITH SO MANY PLAYERS BURNED LAST WEEK ON THE COLLAPSE OF THE USJAPAN TALKS EVERYONE HAS PULLED BACK MR RYAN ALSO SAID THAT PLAYERS ARE TOO BEAT UP TO STAKE LARGE POSITIONS AHEAD OF THE G7 TALKS WHERE TWO OPPOSITE BUT EQUALLY CREDIBLE OUTCOMES ARE POSSIBLE THE FIRST SCENARIO IS THAT ABSOLUTELY NOTHING WILL COME OUT OF THE MEETING ON USJAPAN TRADE WHICH WOULD PRESSURE THE DOLLAR LOWER AGAINST THE YEN THE SECOND SCENARIO IS THAT JAPAN WILL OFFER TO DO SOMETHING ABOUT ITS TRADE SURPLUS SAID MR RYAN NOTING THAT WOULD ALLEVIATE US PRESSURE FOR A STRONG YEN JOHN BEERLING CHIEF DEALER FOR NORWEST BANK IN MINNEAPOLIS SEES THE FIRST SCENARIO AS MORE LIKELY I JUST DON'T SEE AN EASY SOLUTION TO THE TRADE ISSUE AND THAT WILL PUT PRESSURE ON THE YEN TO STRENGTHEN HE SAID 9402240169 940224 WHO'S NEWS ELECTRONIC INFORMATION SYSTEMS INC ELECTRONIC INFORMATION SYSTEMS INC STAMFORD CONN E KEVIN DAHILL 46 YEARS OLD WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER HE REMAINS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS PROVIDER OF COMPUTERIZED OUTBOUND CALL PROCESSING SYSTEMS FOR BUSINESSES THAT USE THE TELEPHONE IN ORGANIZED CALLING CAMPAIGNS 9402240168 940224 GENERAL INSTRUMENT GETS ORDER CHICAGO GENERAL INSTRUMENT CORP SAID IT RECEIVED AN ORDER VALUED AT ABOUT 30 MILLION FROM ADELPHIA COMMUNICATIONS CORP FOR 120000 DIGICABLE SETTOP DIGITAL CONVERTERS GENERAL INSTRUMENT SAID IT EXPECTS TO MAKE INITIAL DELIVERIES IN EARLY 1995 ADELPHIA PLANS TO ROLL OUT DIGITAL COMPRESSION GRADUALLY WHILE MAINTAINING A BASE OF ANALOGADDRESSABLE CONVERTERS GENERAL INSTRUMENT SAID 9402240166 940224 MACY'S CREDITORS SEEN USING FILING TO OPPOSE VANCE BY PATRICK M REILLY AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A ROUTINE FILING BY THE LAW FIRM OF CYRUS R VANCE THE MEDIATOR APPOINTED TO SPEED THE REORGANIZATION OF RH MACY & CO IS LIKELY TO BE USED BY SOME CREDITORS TO RAISE QUESTIONS ABOUT A NUMBER OF POTENTIAL CONFLICTS OF INTERESTS THE FILING BY SIMPSON THACHER & BARTLETT DISCLOSES A NUMBER OF AREAS WHERE THE LAW FIRM HAS DONE WORK FOR PARTIES INVOLVED IN THE MACY BANKRUPTCY COURT PROCEEDING SPECIFICALLY SIMPSON THACHER REPRESENTED DILLARD DEPARTMENT STORES IN THE REVIEW OF VARIOUS STRATEGIES TO ACQUIRE PARTS OF MACY DILLARD CONSIDERED MAKING AN INVESTMENT IN MACY'S SEVERAL MONTHS AGO ACCORDING TO PEOPLE INVOLVED IN THE BANKRUPTCY COURT PROCEEDING THE LAW FIRM HAS WORKED FOR THE LITTLE ROCK ARK RETAILER SINCE 1988 THE FILING ALSO DISCLOSES THAT THE FIRM REPRESENTED GENERAL ELECTRIC CREDIT WHEN THE UNIT OF GENERAL ELECTRIC CO BOUGHT MACY PREFERRED STOCK IN CONNECTION WITH THE 1986 LEVERAGED BUYOUT LATER THE LAW FIRM REPRESENTED GEC WHEN GEC RECAPITALIZED MACY IN AN ATTEMPT TO STAVE OFF A FINANCIAL CRISIS IN 1990 AND 1991 CURRENTLY GEC IS IN NEGOTIATIONS WITH MACY AND FIDELITY INVESTMENTS A MACY SENIOR CREDITOR TO FORMULATE A JOINT REORGANIZATION PLAN THE FILING NOTES THAT SIMPSON THACHER HAS ALSO REPRESENTED CHEMICAL BANKING CORP'S CHEMICAL BANK UNIT CURRENTLY A LEAD LENDER TO MACY THE FIRM DIDN'T REPRESENT CHEMICAL BANK IN CONNECTION WITH ITS EXTENSION OF CREDIT TO MACY ACCORDING TO THE DOCUMENT HOWEVER A CHEMICAL BANK REPRESENTATIVE INVOLVED IN THE REORGANIZATION REACTED WITH DISMAY AT THE NEWS OF MR VANCE'S APPOINTMENT CREDITOR GROUPS HAVE UNTIL FRIDAY TO OBJECT TO THE APPOINTMENT OF MR VANCE AS MEDIATOR AND HIS FIRM AS MEDIATING COUNSEL JUDGE BURTON LIFLAND WILL CONSIDER OBJECTIONS AT A HEARING SCHEDULED FOR MARCH 3 ONE ATTORNEY REPRESENTING CREDITORS SAID WE ARE VERY CONCERNED ABOUT THIS AND ANYONE WHO READS THIS WILL BE EQUALLY CONCERNED MR VANCE AND HIS FIRM WERE APPOINTED TUESDAY BY JUDGE LIFLAND IT IS THE FIRST TIME A MEDIATOR HAS BEEN APPOINTED IN A CHAPTER 11 BANKRUPTCY COURT PROCEEDING IN THE SOUTHERN DISTRICT OF NEW YORK MR VANCE IN A STATEMENT RELEASED YESTERDAY EVENING SAID I AM PLEASED TO HAVE BEEN DESIGNATED BY THE COURT 9402240165 940216 TEXAS JOURNAL ECONOMIC FOCUS THE WONK OF ALL WONKS SHARP OFFERS MASTER PLAN BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL FOR A TAX COLLECTOR JOHN SHARP SURE HAS A LOT ON HIS PLATE IN THE THREE YEARS SINCE HE BECAME THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS PRIMARILY RESPONSIBLE FOR GATHERING TAXES AND MAKING SURE BUDGETWRITERS DON'T EXCEED THEIR REVENUE MR SHARP HAS EMERGED AS THE STATE'S FOREMOST POLICY WONK CHURNING OUT PLANS TO STREAMLINE GOVERNMENT IMPROVE THE CRIMINALJUSTICE SYSTEM AND REFORM THE ADMINISTRATION OF PUBLIC SCHOOLS TO NAME A FEW EVEN AL GORE NO SLOUCH AT WONKING HIMSELF WAS MOVED TO BORROW MANY OF MR SHARP'S IDEAS IN HIS OWN RECENT STAB AT REFORMULATING FEDERAL GOVERNMENT NOW MR SHARP IS BROADENING HIS SCOPE IF SUCH A THING IS POSSIBLE WITHIN TWO WEEKS HIS OFFICE PLANS TO DELIVER THE FINAL 300PAGE INSTALLMENT OF FORCES OF CHANGE A 1300PAGE TOME ON THE MEGATRENDS THAT WILL BUFFET TEXAS THROUGH THE YEAR 2025 AND EVEN THOUGH THE HEFTY STUDY WHICH ORIGINATED IN AN EXECUTIVE ORDER FROM GOV ANN RICHARDS IN 1992 IS MORE THAN A YEAR LATE IT'S BOUND TO MAKE SOME WAVES WHEN IT FINALLY HITS AT ITS CENTER MR SHARP CALLS FOR THE ADOPTION OF A TEXAS BUSINESS PLAN A WIDERANGING SET OF LEGISLATIVE AND ADMINISTRATIVE ACTIONS DESIGNED TO GREASE THE ECONOMY'S ENTRY INTO THE 21ST CENTURY BY OVERHAULING THE STATE'S ECONOMICDEVELOPMENT POLICIES ITS MANAGEMENT OF NATURAL RESOURCES ITS INFRASTRUCTURE EXPANSION AND ITS SCHOOLS AMONG OTHER THINGS IT'S ALSO DESIGNED TO KICK UP SOME CONTROVERSY AS MR SHARP IS QUICK TO ACKNOWLEDGE IF NO ONE PROPOSES ANYTHING NOTHING EVER HAPPENS HE SAYS SOMETIMES YOU HAVE TO LEAD SOMETIMES YOU HAVE TO MAKE CONTROVERSY IN ORDER FOR THERE TO BE A DISCUSSION ONE SURE FLASH POINT WILL BE MR SHARP'S RECOMMENDATIONS FOR EDUCATION REFORM CONCERNED THAT THE STATE'S PUBLIC SCHOOLS ARE DOING A WOEFUL JOB OF PREPARING YOUNG PEOPLE TO ENTER THE WORK FORCE THE COMPTROLLER COUNSELS AN ALLOUT ASSAULT ON THE AUSTINBASED EDUCATION BUREAUCRACY TO LIMIT THE AMOUNT OF CENTRAL CONTROL OVER SCHOOL DISTRICTS HE ALSO TAKES UP THE HOTBUTTON ISSUE OF SCHOOL CHOICE SUGGESTING THAT PARENTS BE ALLOWED TO MOVE THEIR CHILDREN OUT OF POORLY PERFORMING PUBLIC SCHOOLS INTO OTHER ONES NEARBY ALSO CONTROVERSIAL IS MR SHARP'S SUGGESTION THAT TEXAS CONSIDER CONSOLIDATING MORE POWER IN THE EXECUTIVE BRANCH BY FOR INSTANCE GIVING THE GOVERNOR AUTHORITY TO NAME A CABINET SOME CYNICS MIGHT VIEW THAT GAMBIT AS SELFSERVING SINCE MR SHARP IS WIDELY EXPECTED TO RUN FOR GOVERNOR ONE DAY IT'S ALSO IRONIC BECAUSE TEXAS' WEAKGOVERNOR SYSTEM HAS HELPED MR SHARP AMASS TREMENDOUS POWER AS COMPTROLLER FINALLY SOME IN THE PRIVATE SECTOR QUESTION WHETHER TEXAS GOVERNMENT SHOULD BE IN THE BUSINESS OF FORMULATING BUSINESS PLANS IN THE FIRST PLACE THE NOTION THAT YOU NEED SOME GRAND MASTER PLAN SOUNDS MORE LIKE ULTRANATIONALIST RUSSIAN LEADER VLADIMIR ZHIRINOVSKY THAN IT DOES SOMEBODY IN TEXAS SAYS JAMES F SMITH FORMER HEAD OF THE UNIVERSITY OF TEXAS' BUREAU OF BUSINESS RESEACH TO THAT MR SHARP HAS A READY RETORT HE SAYS MUCH OF HIS PLAN CONCERNS GETTING GOVERNMENT TO STREAMLINE ITSELF AND MOVE OUT OF THE WAY AND LET OTHER FACTORS TAKE OVER HE ADDS IF WE'RE HERE TO LET EVERYTHING WASH OVER US WE MIGHT AS WELL GO OUT OF BUSINESS AND ABOLISH THE LEGISLATURE ONE THING IS CERTAIN MR SHARP'S PLAN PROBABLY WON'T SPEND A LOT OF TIME GATHERING DUST EVEN THOUGH AS ONE STAFFER ADMITS IT'S SO FARREACHING THAT TRYING TO GRASP THE WHOLE THING IS LIKE NAILING JELLO TO THE WALL WITH A RESEARCH AND ECONOMICFORECASTING STAFF NUMBERING AROUND 100 THE COMPTROLLER HAS THE MOST EXTENSIVE THINK TANK IN THE STATE AND HIS STUDIES TEND TO FIND THEIR WAY TO POLICY MAKERS AND BUSINESS LEADERS THE TRUTH IS I THINK THE GOVERNOR AND THE LIEUTENANT GOVERNOR AND THE SPEAKER HAVE BEEN WAITING FOR THIS AND PLAN TO USE IT AS BLUEPRINT FOR THE NEXT LEGISLATIVE SESSION SAYS GEORGE CHRISTIAN AN AUSTIN POLITICAL CONSULTANT CONSUMER CONFIDENCE MAY BE ON THE MEND IN TEXAS BUT BUSINESS EXECUTIVES STILL FEEL A BIT SKITTISH ACCORDING TO A NATIONWIDE SURVEY BY DUN & BRADSTREET CORP EXECUTIVES IN THE WEST SOUTH CENTRAL REGION INCLUDING TEXAS ARE LESS OPTIMISTIC ABOUT THEIR NEARTERM PROSPECTS THAN THEY WERE THREE MONTHS AGO BUCKING A NATIONAL TREND OF GREATER BUSINESS CONFIDENCE IN PARTICULAR THIS REGION'S RESPONDENTS ARE LESS SURE THAT THE CURRENT QUARTER'S SALES WILL RISE THAN THEY WERE WHEN QUIZZED THREE MONTHS AGO OR THAT THEIR NUMBER OF EMPLOYEES WILL INCREASE THERE'S SOME CONCERN ABOUT INVENTORY BUILDUP AND THEY DON'T SEE MUCH CHANCE OF RAISING THEIR PRICES ON THE POSITIVE SIDE HOWEVER A GREATER NUMBER OF EXECUTIVES NOW EXPECT TO SEE PROFITS RISE SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR WHAT'S A WONK WSJ FEB 23 1994 9402160189 YY94 MM02 9402240164 940224 BUSINESS BRIEFS MBS COMMUNICATIONS CHESHIRE CONN RECEIVED A CONTRACT TO PROVIDE PHONEANSWERING AND CALLROUTING SERVICE FOR PRATT & WHITNEY A DIVISION OF UNITED TECHNOLOGIES CORP TERMS OF THE PACT WEREN'T DISCLOSED CORNING INC'S JAPANESE UNIT CORNING JAPAN KK OPENED A NEW GLASSSMELTING FACILITY IN JAPAN KIMBERLYCLARK CORP FORMED A JOINT VENTURE WITH UNILEVER GROUP PLC TO MANUFACTURE AND SELL DISPOSABLE DIAPERS AND MARKET FEMININECARE PRODUCTS IN INDIA CURTICEBURNS FOODS INC SOLD ITS MEAT SNACKS DIVISION TO OBERTO SAUSAGE CO KENT WASH TERMS WEREN'T DISCLOSED BURLINGTON NORTHERN INC'S RAILROAD UNIT PURCHASED 500 JUMBO COVERED HOPPERS FOR MORE THAN 20 MILLION TO ADD TO ITS GRAINHAULING FLEET 9402240163 940224 ENTERPRISE SPORTS ENTREPRENEUR TAKES A HIT AS HE FINANCES ARENA SNIDER'S RETAIL CHAINS SHOWCASE AND COMPLETE ATHLETE FILE FOR CHAPTER 11 BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL JUST AS HE IS TRYING TO RAISE LARGE SUMS FOR WHAT HE HOPES WILL BE A BIG WINNER PHILADELPHIA ENTREPRENEUR ED SNIDER APPEARS TO HAVE A CONSPICUOUS LOSER ON HIS HANDS SPECTATHLETE PARTNERSHIP THE OPERATOR AND FRANCHISER OF 66 SPORTS APPAREL STORES UNDER THE NAMES SHOWCASE AND COMPLETE ATHLETE FILED FOR PROTECTION FROM CREDITORS LAST WEEK UNDER THE FEDERAL BANKRUPTCY CODE SPECTATHLETE IS 85OWNED BY A UNIT OF SPECTACOR INC A FAMILYOWNED SPORTS ENTERTAINMENT AND COMMUNICATIONS COMPANY CONTROLLED BY MR SNIDER A COURT HEARING ON SPECTATHLETE'S BANKRUPTCY FILING OCCURS TODAY AN AGGRESSIVE DEALMAKER THE 62YEAROLD MR SNIDER CONTROLS THE PHILADELPHIA FLYERS PROFESSIONAL HOCKEY TEAM THE SPECTRUM ARENA THERE AND OTHER VENTURES THE CRISIS AT SPECTATHLETE A RARE BLEMISH ON HIS RECORD COMES AS HE SEEKS TO RAISE ABOUT 135 MILLION FROM PRIVATE INVESTORS TO HELP FINANCE SPECTRUM 2 A MAJOR ARENA INTENDED TO OPEN IN PHILADELPHIA BY THE FALL OF 1996 MR SNIDER COULDN'T BE REACHED FOR COMMENT BUT PHILIP WEINBERG SPECTACOR'S CORPORATE COUNSEL SAYS THAT MR SNIDER DOESN'T HAVE ANY PERSONAL FINANCIAL PROBLEMS AND THAT SPECTATHLETE'S DIFFICULTIES WON'T AFFECT MR SNIDER'S OTHER BUSINESSES OR HIS ABILITY TO FINANCE THE PLANNED ARENA BUT MANY SPECTATHLETE FRANCHISEES WORRY ABOUT THEIR FUTURE MILTON SCHNEIDER A PARTNER IN A COMPLETE ATHLETE FRANCHISE IN NEW YORK BLAMES MR SNIDER FOR FAILING TO TURN SPECTATHLETE AROUND HERE'S A GUY WHO IF HE CAN BUILD AN ARENA SURELY COULD HAVE BAILED OUT THE COMPANY OR AT LEAST IDENTIFIED THE PROBLEMS AND TRIED TO SOLVE THEM MR SCHNEIDER MAINTAINS BUT HE STAYED HANDSOFF ON THE WHOLE SITUATION NONSENSE SAYS JACK L WILLIAMS PRESIDENT OF SPECTACOR HE SAYS MR SNIDER HAS POURED MONEY INTO SPECTATHLETE YEAR AFTER YEAR IF IT HADN'T BEEN FOR MR SNIDER THE COMPANY WOULD HAVE BEEN OUT OF BUSINESS FIVE YEARS AGO INITIALLY ONLY A 50 PARTNER IN SPECTATHLETE MR SNIDER LEFT ITS MANAGEMENT TO OTHERS UNTIL THIS MONTH SPECTACOR SAYS SPECTATHLETE DECLINES TO DISCUSS ITS DISGRUNTLED FRANCHISEES OR TO PROVIDE NAMES OF SATISFIED ONES UNTIL RECENTLY MANY FRANCHISEES HELD A VERY HIGH OPINION OF MR SNIDER INDEED SOME SAY THAT SPECTATHLETE FRANCHISE MARKETERS RELIED ON HIS REPUTATION FOR BUSINESS SAVVY THE SALES PITCH WAS ED SNIDER'S A WINNER SAYS PETER AREST WHO OWNS COMPLETE ATHLETE STORES IN WHITE PLAINS NY AND ROCKAWAY TOWNSHIP NJ UNLIKE MOST FRANCHISERS SPECTATHLETE WHICH OPERATES IN 10 STATES MOSTLY IN THE NORTHEAST DISTRIBUTED GOODS TO FRANCHISEES WHEN FIERCE COMPETITION DEPRESSED SALES IN THE PAST TWO YEARS MANY FRANCHISEES FELL BEHIND IN PAYING THE COMPANY SPECTACOR SAYS SPECTATHLETE THEN FELL BEHIND WITH ITS SUPPLIERS LAST MAY SPECTATHLETE TOLD FRANCHISEES THAT THEY WOULD NEED MORE CREDIT AND CASH TO GET ADDITIONAL SUPPLIES FRANCHISEES SAY RONALD E SCHEER WHOSE GREEN MONSTER SPORTS INC IN SYRACUSE NY OPERATES FOUR COMPLETE ATHLETE FRANCHISES IN THE NORTHEAST SAYS HE STOPPED PAYING ROYALTIES LAST YEAR BECAUSE OTHERWISE HE COULDN'T AFFORD TO MEET THE NEW CREDIT REQUIREMENTS HE AND THE COMPANY ARE NOW EMBROILED IN A LEGAL DISPUTE OVER ROYALTIES AND OTHER MATTERS IN A STATE COURT IN SYRACUSE MR SCHNEIDER SAYS HIS STORE WAS PROFITABLE LAST YEAR ONLY BECAUSE IT REJECTED SPECTATHLETE'S DISTRIBUTION SYSTEM AND OPENED ITS OWN ACCOUNTS WITH SUPPLIERS HE AND SPECTATHLETE ALSO ARE NOW LEGAL ADVERSARIES IN AN ARBITRATION PROCEEDING IN PHILADELPHIA AND A FEDERAL COURT CASE IN NEW YORK SPECTATHLETE'S PROBLEMS GREW INTO A FULLFLEDGED CRISIS EARLIER THIS YEAR SPECTATHLETE UNSUCCESSFULLY SOUGHT A MORATORIUM ON PAYING ITS OVERDUE BILLS WHILE OFFERING TO PAY CASH FOR NEW GOODS SPECTACOR SAYS CREDITORS REFUSED THEN THEY STUNNED THE COMPANY WITH A LEGAL ASSAULT ON FEB 2 THE SAME DAY THAT MR SNIDER AND OTHERS STAGED A NEWS CONFERENCE ABOUT THE PROPOSED ARENA THREE CREDITORS SOUGHT TO FORCE SPECTATHLETE INTO INVOLUNTARY BANKRUPTCY LAST WEEK THE COMPANY RESPONDED WITH A VOLUNTARY CHAPTER 11 BANKRUPTCY FILING SEEKING TO KEEP ITS OPERATIONS RUNNING WHILE WORKING OUT A PLAN TO SETTLE ITS DEBTS TODAY'S PLANNED COURT HEARING MOSTLY SEEKS TO EXPLORE SPECTATHLETE'S PLAN TO KEEP AFLOAT BY BORROWING A FURTHER 25 MILLION FROM CONTINENTAL BANK A PHILADELPHIA UNIT OF MIDLANTIC CORP SPECTATHLETE ALREADY OWES THE BANK 53 MILLION ACCORDING TO A COURT FILING BY THE COMPANY SPECTACOR SAYS MR SNIDER HAS SIGNED A GUARANTEE THAT IF NECESSARY HE WILL REPAY ANY ADDITIONAL SPECTATHLETE DEBT WHILE DECLINING TO DISCLOSE SPECIFIC FIGURES SPECTATHLETE CONFIRMS THAT IT SPILLED RED INK IN THE FISCAL YEAR ENDED JAN 31 BUT IT INSISTS THAT ITS OPERATIONS HAVEN'T BEEN IMPAIRED BY THOSE LOSSES CREDITORS' MOVES OR ANYTHING ELSE THE STORES ARE FINE FOR NOW SAYS WILLIAM BOOS WHO BECAME SPECTATHLETE'S PRESIDENT LAST MONTH THERE HAS BEEN NO INTERRUPTION OF PRODUCT FLOW AND THERE WILL BE NONE BUT SOME ANGRY FRANCHISEES SAY THEIR STORES ARE FAR FROM FINE LACKING MOST OF THE SPRING MERCHANDISE THAT THEY SHOULD HAVE BY NOW THEY BLAME MR SNIDER FOR LETTING SPECTATHLETE ALIENATE IMPORTANT SUPPLIERS THESE FRANCHISEES ALSO COMPLAIN THAT SPECTATHLETE REDUCED ITS EXPOSURE IN THE LAST 18 MONTHS BY SELLING ABOUT A DOZEN FRANCHISEROWNED UNITS TO NEW FRANCHISEES NOW MR SNIDER MAY BE THINKING ABOUT SELLING THE WHOLE TROUBLED COMPANY RENTRAK CORP A DIVERSIFIED VIDEOTAPE DISTRIBUTOR IN PORTLAND ORE SAYS IT IS TALKING WITH SPECTACOR ABOUT POSSIBLY ACQUIRING SPECTATHLETE RENTRAK SAYS ITS PRO IMAGE INC UNIT ALREADY OVERSEES 200 SPORTSAPPAREL SHOPS MOSTLY FRANCHISES UNDER RENTRAK SPECTATHLETE WOULD GAIN THE CRITICAL MASS THAT IT LACKS SAYS RON A BERGER RENTRAK CHAIRMAN WITH TOO FEW UNITS HE EXPLAINS A CHAIN CAN'T SUPPORT A FRANCHISER'S OVERHEAD SPECTACOR'S MR WEINBERG CONFIRMS THE TALKS ABOUT SPECTATHLETE HE ADDS OUR AIM IS TO FIND AN APPROPRIATE SOLUTION FOR THE COMPANY'S DIFFICULTIES 9402240161 940224 INTERNATIONAL RUSSIA'S DUMA GRANTS AMNESTY TO REBEL CHIEFS IN 25367 VOTE PARLIAMENT REJECTS PUNISHMENT IN 1991 AND 1993 CRISES BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN A MOVE THAT COULD TRIGGER ANOTHER ROUND OF CONFRONTATION BETWEEN RUSSIA'S PRESIDENT AND PARLIAMENT THE STATE DUMA VOTED A SWEEPING AMNESTY THAT PARDONS LEADERS OF THE ATTEMPTED AUGUST 1991 COUP AND HARDLINERS WHO LED THE ARMED REBELLION IN MOSCOW IN OCTOBER THE AMNESTY PASSED BY A VOTE OF 25367 WITH 28 ABSTAINING INDICATING THAT MANY REFORMORIENTED AND CENTRIST PARTIES BACKED IT KONSTANTIN ZATULIN DEPUTY CHAIRMAN OF THE CENTRIST PARTY OF UNITY AND ACCORD SAID HIS PARTY ALONG WITH THE CONSERVATIVE AGRARIAN PARTY AND OTHERS WERE THE INITIATORS OF THE PROPOSAL THE IDEA BEHIND THIS AGREEMENT WAS TO START OVER TO REVIVE RUSSIA AFTER THE ADOPTION OF THE CONSTITUTION MR ZATULIN TOLD REPORTERS WE HAVE TRIED TO DO EVERYTHING HUMANLY POSSIBLE SO THAT AS A RESULT OF THIS DECISION THE PAST WILL STOP INFLUENCING THE PRESENT AND THE DEAD WILL STOP INFLUENCING THE LIVING BUT REFORMERS WHO OPPOSED THE BILL PRIMARILY FROM THE RUSSIA'S CHOICE BLOC WARNED THAT IT WOULD HEIGHTEN TENSION AND BRING POLITICAL CONFRONTATION BACK TO THE STREETS AS THE VOTING WAS CONCLUDED ONE MEMBER OF THE DUMA SHOUTED OUT FROM THE FLOOR THANK YOU GENTLEMEN NOW YOU'VE OPENED THE WAY TO CIVIL WAR THE AMNESTY COVERS MEN UNDER ARREST FOR INCITING MASS DISORDER LAST AUTUMN INCLUDING FORMER PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV FORMER VICE PRESIDENT ALEXANDER RUTSKOI AND MILITANTS ILYA KONSTANTINOV AND VIKTOR ANPILOV IT ALSO COVERS FORMER SOVIET TOP OFFICIALS NOW ON TRIAL AT THE CONSTITUTIONAL COURT FOR LEADING THE AUGUST 1991 ATTEMPTED COUP AS WELL AS ORGANIZERS OF A HARDLINE DEMONSTRATION IN MAY 1993 IN WHICH THERE WERE VIOLENT CLASHES WITH POLICE IT ALSO FREES HUNDREDS OF BUSINESSMEN WHO WERE CONVICTED DURING THE SOVIET ERA OF ECONOMIC CRIMES INCLUDING BUYING AND RESELLING GOODS AND OTHER COMMERCIAL ACTIVITIES THAT TODAY ARE CONSIDERED ORDINARY THE AMNESTY PASSED ON THE EVE OF A MAJOR ADDRESS BY PRESIDENT BORIS YELTSIN ON CONDITIONS IN THE COUNTRY AND HIS PLANS FOR FURTHER REFORMS THE SPEECH IS WIDELY EXPECTED TO BE CONCILIATORY AND TO FOCUS ON THE NEED FOR STABILITY AND UNITY HOWEVER PRESIDENTIAL AIDE EMIL PAINE TOLD THE ITARTASS NEWS SERVICE THAT THE AMNESTY DECISION IS AN OPEN SYMBOLIC CHALLENGE TO THE PRESIDENT IT PUTS A CONSTRUCTIVE DIALOGUE BETWEEN THE PRESIDENT AND THE PARLIAMENT UNDER BIG DOUBT HE ADDED THE CONSTITUTION SAYS THAT THE STATE DUMA HAS THE RIGHT TO GRANT AMNESTY WHILE THE PRESIDENT HAS THE RIGHT TO GRANT PARDONS IT DOES NOT EXPLAIN WHAT THE DISTINCTION IS BETWEEN THE TWO WORDS AND NO ONE IS CERTAIN WHAT THE WRITERS OF THE CONSTITUTION INTENDED THUS IT IS UNCLEAR WHETHER MR YELTSIN'S APPROVAL WILL BE NEEDED OR NOT ACCORDING TO PARLIAMENT MEMBERS THE AMNESTY GOES INTO EFFECT AS SOON AS IT IS PUBLISHED IN THE RUSSIAN PRESS ITARTASS REPORTED THAT IT WILL BE IMPLEMENTED IN SIX MONTHS THE DECISION CANCELS THE INVESTIGATION BY A PARLIAMENT COMMITTEE INTO THE EVENTS OF OCT 3 AND 4 WHEN DIEHARDS TOOK UP ARMS AND REFUSED TO LEAVE THE PARLIAMENT BUILDING AND THE PRESIDENT'S DECISION TWO WEEKS EARLIER TO BAN THE PARLIAMENT DOZENS OF PEOPLE DIED IN ARMED CLASHES DURING THOSE EVENTS AND BOTH SIDES ARE GENERALLY SEEN AS HAVING CONTRAVENED THE CONSTITUTION THE DECISION ALSO PUTS AN END TO THE TRIAL OF ALLEGED PLOTTERS OF THE ATTEMPTED AUGUST 1991 COUP WHICH HAS BEEN LIMPING ALONG FOR THE PAST TWO YEARS WITH SESSIONS OFTEN DELAYED ON PROCEDURAL GROUNDS OR DUE TO THE ILL HEALTH OF THE ACCUSED POLITICAL ANALYSTS HAVE LONG SAID THAT ALMOST NO ONE HAS A REAL INTEREST IN RESOLVING THE CASE BECAUSE SO MANY PEOPLE HAVE SKELETONS IN THEIR CLOSETS SOME POLITICAL ANALYSTS SAY THE OVERWHELMING VOTE IN FAVOR OF AMNESTY REVEALS THE POLITICAL SELFINTEREST OF TODAY'S LEADERS MOST OF THE LEADERS OF PARLIAMENT FACTIONS WHETHER REFORMIST OR CONSERVATIVE HAVE THEIR EYES ON MR YELTSIN'S JOB AND RECKON THAT UNDERMINING HIM IN ANY WAY WILL SERVE THEIR PURPOSES SAID ALEXEI PUSHKOV DEPUTY EDITOR OF THE WEEKLY MOSCOW NEWS I'M AFRAID VARIOUS VOICES COINCIDED BECAUSE EVERYONE WANTS YELTSIN OUT NOT BECAUSE OF PARTICULAR SYMPATHY FOR THE AUGUST COUP PLOTTERS MR PUSHKOV SAID BUT THE DECISION IS MORE LIKELY TO BOOST THE POWER OF EXTREMISTS THAN MODERATES 9402240160 940224 FINANCING BUSINESS MAXCO INC MAXCO INC SAID IN LANSING MICH THAT ITS FINISHMASTER SUBSIDIARY WILL OFFER 17 MILLION COMMON SHARES AT 1050 A SHARE IN AN INITIAL PUBLIC OFFERING FINISHMASTER MAKES AUTOMOTIVE PAINTS COATINGS AND ACCESSORIES 9402240159 940224 US AGENCIES ARE SHIELDED BY TOP COURT IN MONEY SUITS BASED ON CONSTITUTION BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT GAVE US AGENCIES A BROAD SHIELD AGAINST LAWSUITS SEEKING MONEY DAMAGES BASED ON ALLEGED CONSTITUTIONAL VIOLATIONS THE UNANIMOUS DECISION SPECIFICALLY SHELTERED THE GOVERNMENT FROM POTENTIALLY COSTLY AND TIMECONSUMING SUITS ARISING FROM THE CLEANUP OF THE SAVINGSANDLOAN INDUSTRY THE JUSTICES SAID THAT FORMER EXECUTIVES OF FAILED FINANCIAL INSTITUTIONS MAY NOT SUE REGULATORY AGENCIES FOR FIRING THEM BUT WHILE THE CASE CONCERNED THE FEDERAL DEPOSIT INSURANCE CORP ITS REASONING WILL PROTECT ALL US AGENCIES INCLUDING THOSE THAT OVERSEE OTHER TYPES OF BUSINESSES THE HIGH COURT'S DECISION WOULD HAVE BEEN MORE IMPORTANT IF IT HAD COME TO THE OPPOSITE CONCLUSION BUT THE JUSTICES REVERSED A RULING BY A LONE FEDERAL APPEALS COURT THAT HAD EXPOSED FEDERAL AGENCIES TO LIABILITY ON CONSTITUTIONAL GROUNDS THEY LEFT OPEN OTHER AVENUES FOR SUING THE GOVERNMENT SUCH AS FILING SUIT AGAINST INDIVIDUAL OFFICIALS YESTERDAY'S DECISION STEMMED FROM THE FAILURE OF A CALIFORNIA THRIFT FIDELITY SAVINGS & LOAN WHICH WAS PUT INTO FEDERAL RECEIVERSHIP IN 1982 A FEDERAL REGULATOR FIRED FIDELITY'S FOUR TOP OFFICIALS WITHOUT GIVING THEM A CHANCE TO CONTEST THE DECISION ONE OF THE OFFICIALS JOHN MEYER SUED THE GOVERNMENT CLAIMING THAT HE HAD BEEN DEPRIVED OF HIS CONSTITUTIONAL PROPERTY INTEREST IN HIS JOB WITHOUT BEING AFFORDED DUE PROCESS OF LAW A JURY FOUND THE GOVERNMENT LIABLE AND AWARDED MR MEYER 130000 FOR LOSSES RELATED TO THE FIRING IN A DECISION ISSUED IN 1991 THE FEDERAL APPEALS COURT IN SAN FRANCISCO AFFIRMED THE VERDICT CONCLUDING THAT THE GOVERNMENT SHOULD HAVE GIVEN MR MEYER AN OPPORTUNITY TO BE HEARD THE FDIC APPEALED THAT DECISION TO THE SUPREME COURT WHICH RULED FOR THE AGENCY WRITING FOR THE HIGH COURT JUSTICE CLARENCE THOMAS SAID THE APPELLATE COURT HAD IMPROPERLY RELIED ON A 1971 SUPREME COURT DECISION THAT ALLOWED PRIVATE SUITS AGAINST INDIVIDUAL FEDERAL OFFICIALS WHO HAVE DELIBERATELY ENGAGED IN UNCONSTITUTIONAL CONDUCT FOR BOTH LOGICAL AND PRACTICAL REASONS THE 1971 CASE SHOULDN'T BE EXTENDED TO PERMIT SUITS AGAINST AGENCIES JUSTICE THOMAS SAID THE 1971 DECISION WAS DESIGNED TO DETER LAWENFORCEMENT AGENTS AND OTHER OFFICIALS FROM UNCONSTITUTIONAL CONDUCT SUCH AS UNJUSTIFIED SEARCHES FOR CRIMINAL EVIDENCE IF PEOPLE COULD SUE THE AGENCIES THEMSELVES JUSTICE THOMAS REASONED THERE WOULD BE NO INCENTIVE TO GO AFTER INDIVIDUAL OFFICIALS AND THE DETERRENCE EFFECT WOULD BE LOST AS A PRACTICAL MATTER PERMITTING SUITS DIRECTLY AGAINST AGENCIES WOULD CREATE A POTENTIALLY ENORMOUS FINANCIAL BURDEN ON THE FEDERAL GOVERNMENT HE MAINTAINED IT SHOULD BE UP TO CONGRESS NOT THE JUDICIARY HE SAID TO EXPAND FEDERAL LIABILITY IN THIS FASHION SEPARATELY THE SUPREME COURT UNANIMOUSLY RULED THAT THE FEDERAL PRIVACY ACT PRECLUDES THE DISCLOSURE OF HOME ADDRESSES OF FEDERAL EMPLOYEES TO UNIONS OR OTHERS THE CASE STEMS FROM REQUESTS BY TWO UNION LOCALS FOR ADDRESSES OF DEFENSE DEPARTMENT EMPLOYEES IN BARGAINING UNITS REPRESENTED BY THE UNIONS THE UNIONS WANTED THE ADDRESSES SO THAT ORGANIZERS COULD CONTACT NONUNION WORKERS THE PENTAGON SUPPLIED THE WORKERS' NAMES BUT INSISTED THAT UNDER THE PRIVACY ACT WHICH APPLIES ONLY TO FEDERAL EMPLOYEES THE ADDRESSES COULDN'T BE DISCLOSED THE UNIONS COMPLAINED AND THE FEDERAL LABOR RELATIONS AUTHORITY WHICH HANDLES SUCH DISPUTES SIDED WITH THEM A FEDERAL APPEALS COURT UPHELD THE AUTHORITY'S DETERMINATION THE DEFENSE DEPARTMENT APPEALED AND THE SUPREME COURT SAID THAT THE APPEALS COURT HAD BEEN WRONG WRITING FOR THE MAJORITY JUSTICE THOMAS SAID THE LOWER COURT WAS IMPROPERLY CONCERNED ABOUT FACILITATING UNION REPRESENTATION HE SAID THAT FEDERAL STATUTES AND A 1989 SUPREME COURT PRECEDENT REQUIRE COURTS TO FOCUS ONLY ON WHETHER THE PRIVACY INTEREST OF NONUNION WORKERS IS OUTWEIGHED BY ANY GREATER PUBLIC UNDERSTANDING OF GOVERNMENT OPERATIONS THAT WOULD BE ACHIEVED BY DISCLOSURE OF THE DISPUTED ADDRESSES FINDING THE PUBLIC INTEREST TO BE NEGLIGIBLE JUSTICE THOMAS SAID THAT THE DEFENSE DEPARTMENT HAD ACTED PROPERLY IN WITHHOLDING THE ADDRESSES IN AN ECHO OF HIS OPINION IN THE FDIC CASE HE ADDED THAT IF THE HIGH COURT'S CONCLUSION PLACES PUBLICSECTOR UNIONS AT A DISADVANTAGE COMPARED WITH PRIVATESECTOR UNIONS IT IS UP TO CONGRESS TO CORRECT THE PROBLEM DEFENSE DEPARTMENT VS FEDERAL LABOR RELATIONS AUTHORITY 9402240158 940224 POLITICS & POLICY ALLIES AGAINST DEFICIT SPLIT OVER PLAN TO AMEND CONSTITUTION TO REQUIRE BALANCED FEDERAL BUDGET BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CAROL COX WAIT AND MARTHA PHILLIPS SHARE ALMOST IDENTICAL CREDENTIALS AS DEFICIT HAWKS BOTH ARE REPUBLICANS BOTH ARE FORMER CONGRESSIONAL AIDES BOTH HOLD KEY POSITIONS WITH FISCALWATCHDOG GROUPS BOTH BELIEVE AMERICANS ARE READY TO MAKE SACRIFICES TO REDUCE THE GOVERNMENT'S RED INK YET AS CONGRESS AGAIN TAKES UP THE PROPOSAL FOR A CONSTITUTIONAL AMENDMENT THAT WOULD REQUIRE A BALANCED FEDERAL BUDGET THEY FIND THEMSELVES IN SHARP OPPOSITION TO EACH OTHER MS PHILLIPS EXECUTIVE DIRECTOR OF THE CONCORD COALITION SEES A CONSTITUTIONAL AMENDMENT AS THE LAST AND ONLY HOPE FOR THE US TO UNBURDEN ITSELF OF INTEREST PAYMENTS THAT TOTAL 213 BILLION THIS YEAR ALONE AND MAY GROW TO CRIPPLING LEVELS FOR FUTURE GENERATIONS NO ONE IS GOING TO PRESENT THIS AS A SMOOTH CLEAN WONDERFUL OPTION SHE SAYS BUT WE CAN'T FIGURE OUT ANYTHING ELSE TO DO BUT MS WAIT PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET THINKS ALTERING THE CONSTITUTION IS A PRESCRIPTION FOR DISASTER RATHER THAN VOTING FOR AN AMENDMENT SHE BELIEVES LAWMAKERS SHOULD BE WILLING TO MAKE THE HARD CHOICES NOW ABOUT HOW TO BALANCE THE BUDGET IF THEY AREN'T WILLING TO DO THAT THEN THEY SHOULDN'T VOTE FOR IT THEIR DISAGREEMENT IS OF MORE THAN ACADEMIC INTEREST WITH THEIR EXPERIENCE AND EXPERTISE THEY ARE AMONG THE MOST RESPECTED VOICES IN WASHINGTON ON BUDGET MATTERS AND EACH SIDE IS COUNTING ON THEIR CREDIBILITY TO HELP SWAY UNDECIDED LAWMAKERS AS THE HOTLY CONTESTED BATTLE DRAWS TO A CLIMAX THE AMENDMENT NOW BEING DEBATED ON THE SENATE FLOOR FACES AN UPHILL FIGHT DESPITE ITS IMMENSE POPULARITY WITH THE PUBLIC SUPPORTERS WHO INCLUDE REPUBLICANS AND A SMALLER GROUP OF DEMOCRATS LED BY SEN PAUL SIMON OF ILLINOIS NEED A TWOTHIRDS MAJORITY OR 67 VOTES IF ALL 100 SENATORS ARE PRESENT PRELIMINARY COUNTS SUGGEST THAT MR SIMON NOW HAS ROUGHLY 60 VOTES WHILE THE BILL'S CHIEF FOE POWERFUL DEMOCRATIC SEN ROBERT C BYRD OF WEST VIRGINIA HAS ABOUT 30 IF MR SIMON SOMEHOW WINS THE NEEDED TWOTHIRDS MAJORITY THE HOUSE IS EXPECTED TO PASS THE AMENDMENT AS WELL AND SEND IT TO THE STATES FOR RATIFICATION BUT JUST THIS WEEK TWO PREVIOUSLY UNDECIDED SENATORS DEMOCRAT BARBARA MIKULSKI OF MARYLAND AND REPUBLICAN NANCY KASSEBAUM OF KANSAS JOINED THE CAMP OPPOSED TO THE AMENDMENT AND ADDING TO THE BILL'S DIFFICULT PATH IT STILL FACES 20 OR MORE PROPOSED CHANGES MOST OF THEM HOSTILE BEFORE A FINAL SENATE VOTE THAT IS EXPECTED NEXT WEEK AT THE EARLIEST MOREOVER THE DEBATE COMES AT A TIME WHEN THE WHITE HOUSE CASE AGAINST THE CONSTITUTIONAL AMENDMENT IS BEGINNING TO SOUND LIKE A CASE AGAINST BALANCING THE BUDGET AT ALL ALTHOUGH PRESIDENT CLINTON PUSHED THROUGH A DEFICITREDUCTION PROGRAM LAST YEAR AND PROMISES THAT HIS HEALTHCARE INITIATIVE WOULD RESTRAIN FUTURE DEFICITS IN RECENT SPEECHES HE HAS ALL BUT RULED OUT RAISING TAXES AND TRIMMING SOCIAL SECURITY OR MEDICARE BENEFITS ALL OF WHICH WOULD HAVE TO BE CONSIDERED AS PART OF ANY FURTHER DEFICITREDUCTION PLAN THE LAST TIME THE FEDERAL GOVERNMENT RAN A SURPLUS 32 BILLION WAS IN 1969 COINCIDENTALLY THAT WAS THE YEAR THAT MS PHILLIPS NOW 52 YEARS OLD STARTED WORKING FOR THE HOUSE GOP RESEARCH COMMITTEE IT WAS THE FIRST OF MANY JOBS INCLUDING A STINT ON THE WAYS AND MEANS COMMITTEE STAFF TRYING TO GET A GRASP ON THE ISSUE OF BURGEONING ENTITLEMENTS PAYMENTS EVENTUALLY MS PHILLIPS SAYS SHE TIRED OF BRIEFING CONGRESSMEN WHO WOULD SPEAK KNOWLEDGEABLY IN PRIVATE ABOUT THE NEED FOR SLASHING THE BUDGET AND THEN PURSUE DEFICITSWELLING PORK LEGISLATION FOR THEIR DISTRICT I WORKED IT FROM THE INSIDE AND AFTER A WHILE I CEASED TO BE A TRUE BELIEVER SHE SAYS WHEN IT CAME TIME TO TAKE THE VOTES THEY WEREN'T THERE AFTER 23 YEARS OF THOSE FIGHTS SHE BEGAN SAVING PRESS CLIPPINGS ON THE CONCORD COALITION LAUNCHED BY FORMER GOP SEN WARREN RUDMAN OF NEW HAMPSHIRE AND FORMER DEMOCRATIC SEN PAUL TSONGAS OF MASSACHUSETTS WHEN THEY OFFERED HER THE JOB OF EXECUTIVE DIRECTOR SHE LEAPT AT THE CHANCE NAMED FOR THE TOWN WHERE REGULAR FOLKS TURNED BACK THE REDCOATS IN THE REVOLUTIONARY WAR THE COALITION HAS CREDIBILITY THAT SOME OTHERS IN THE PROAMENDMENT CAMP LACK BECAUSE IT HAS DEVISED AN ACTUAL PLAN TO CUT THE DEFICIT TO ZERO BY THE YEAR 2000 THE PLAN HAS ALL THE HALLMARKS OF A SERIOUS EFFORT IT WOULD BE PAINFUL FOR EVERYONE IT WOULD ACHIEVE THE GOAL MOSTLY THROUGH WHACKING SOCIAL SECURITY BENEFITS FOR ANYONE WITH AN INCOME ABOVE 40000 TAX INCREASES WOULD ACCOUNT FOR A THIRD OF THE PROPOSAL INCLUDING A 50CENTSAGALLON GASOLINE TAX IT'S JUST ONE PLAN THEY SAY TO DEMONSTRATE THAT IT CAN BE DONE BUT ABSENT A CONSTITUTIONAL AMENDMENT MS PHILLIPS SAYS LAWMAKERS WILL NEVER BE ABLE TO IMPOSE SUCH DISCIPLINE ON THE SPENDING PROCESS WHAT IN THE WORLD IS GOING TO HAPPEN TO MOVE THE POLITICAL PROCESS SHE ASKS SEN SIMON IS FOND OF POINTING OUT THAT SINCE THE AMENDMENT WAS DEFEATED BY ONE VOTE IN 1986 THE FEDERAL DEBT HAS MORE THAN DOUBLED TO 44 TRILLION FROM 2 TRILLION LIKE MS PHILLIPS MS WAIT 51 SAYS THAT HER TIME ON CAPITOL HILL LEFT HER HIGHLY SKEPTICAL OF CONGRESSIONAL BACKBONE WHEN IT COMES TO THE DEFICIT AS LEGISLATIVE DIRECTOR ON THE SENATE BUDGET COMMITTEE FROM 1977 TO 1981 SHE OFTEN SERVED AS THE COMMITTEE STAFFER ON THE SENATE FLOOR AS MEMBERS DEBATED VARIOUS PROGRAMS THAT REQUIRED SPENDING SENATORS WOULD COME UP TO ME AND SAY CAN WE DO THIS IS THIS IN THE BUDGET' SHE RECALLS USUALLY HER ANSWER WAS NO BUT SHE WAS STRUCK BY HOW OFTEN IT WAS ASKED AND HOW OFTEN THE MONEY WOUND UP BEING VOTED ANYWAY WITH THAT BACKGROUND SHE WAS A NATURAL TO JOIN THE CITIZENS FOR A RESPONSIBLE BUDGET IN 1981 FORMED BY AMONG OTHERS FUTURE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SHE WORKS FULL TIME TO KEEP AN EYE ON BUDGET SHENANIGANS AND WITH CITIZEN GROUPS WHO LOOK AT SERIOUS WAYS TO REDUCE THE DEFICIT HER BIGGEST FEAR HOWEVER IS THAT CONGRESS WILL PASS THE AMENDMENT AND IMMEDIATELY DISSOLVE INTO A PROCEDURAL MESS WHOSE ECONOMIC ASSUMPTIONS WOULD BE USED TO FORECAST SPENDING AND RECEIPTS WHAT IF THEY WERE WRONG WHO WOULD HAVE STANDING TO ASSERT THAT THEY WERE WRONG WHAT WOULD HAPPEN IF THE BUDGET GETS OUT OF BALANCE SHE ARGUES THAT IF AN AMENDMENT PASSED THOSE QUESTIONS AND A MILLION MORE WOULD INSURE THAT THE FEDERAL BUDGET ULTIMATELY LANDS IN FEDERAL COURT THE ANSWERS TO BE PROVIDED BY JUDGES SERVING ON THE BENCH FOR LIFE MS WAIT ALSO NOTES THAT THERE MAY BE TIMES WHEN IT MIGHT BE SENSIBLE TO RUN A SMALL DEFICIT TIMES OF WAR OR ECONOMIC SLUMPS IT'S INAPPROPRIATE TO ENSHRINE A PARTICULAR FISCAL POLICY IN THE CONSTITUTION SHE SAYS BESIDES SHE SAYS THERE ARE OTHER WAYS TO ENSURE A BALANCED BUDGET WITHOUT TINKERING WITH THE LAW TESTIFYING BEFORE THE SENATE IN THE MID1980S SHE PROPOSED OTHER PROCEDURAL MECHANISMS HER FAVORITE A RULE WHEREBY ANY VOTE ON LEGISLATION THAT WOULD INCREASE THE DEFICIT WOULD BE PRECEDED BY A SEPARATE VOTE TO BUST THE BUDGET SHE RECALLS SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS LAUGHING OFF THE IDEA AS PIEINTHESKY BUT SAYS SHE'LL PITCH A SIMILAR IDEA AGAIN WHEN SHE TESTIFIES THIS WEEK FOR ALL THEIR DISAGREEMENT OVER THE CONSTITUTIONAL AMENDMENT MS WAIT AND MS PHILLIPS SHARE THE WORRY THAT SOME OF THE STEAM MAY HAVE GONE OUT OF THE BALANCEDBUDGET CAUSE IRONICALLY THE REASON MAY BE THE DEFICITREDUCTION LAW THAT THE DEMOCRATIC CONGRESS AND DEMOCRATIC ADMINISTRATION PUSHED THROUGH LAST YEAR THE FISCAL 1994 DEFICIT IS PROJECTED TO BE 1651 BILLION DOWN FROM THE 2348 BILLION THAT WAS FORECAST BEFORE LAST YEAR'S NEW SPENDING CUTS AND TAXES THE RESULT THE TWO WOMEN FEAR IS THAT LAWMAKERS AND THE PUBLIC MAY BECOME COMPLACENT WHEN IT COMES TO CUTTING THE DEFICIT MS PHILLIPS PREDICTS THE LINE THAT'S GOING TO BE PUT OUT FAR AND WIDE IS THAT WE DID THAT LAST YEAR MS WAIT ADDS SARCASTICALLY GOD FORBID WE HAVE A DEFICIT LOWER THAN 200 BILLION 9402240157 940224 TANDY TO CALL DEBENTURES FORT WORTH TEXAS TANDY CORP SAID IT WILL CALL ITS 10 SUBORDINATED DEBENTURES DUE JUNE 30 1994 FOR REDEMPTION ON APRIL 1 AT 100 OF FACE VALUE ABOUT 324 MILLION IN PRINCIPAL AMOUNT OF THE DEBENTURES IS OUTSTANDING THE CONSUMER ELECTRONICS CONCERN SAID 9402240156 940224 WHO'S NEWS COMMUNITY HEALTH SYSTEMS INC COMMUNITY HEALTH SYSTEMS INC HOUSTON MARTIN S RASH VICE PRESIDENT AND GROUP DIRECTOR WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS HOSPITAL MANAGEMENT COMPANY MR RASH 39 YEARS OLD SUCCEEDS DAVID R WHITE 46 WHO RESIGNED TO TAKE A POSITION WITH ANOTHER HEALTHCARE COMPANY 9402240155 940223 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 9402240154 940224 WHAT'S NEWS WORLDWIDE SENATORS URGED A FREEZE OF AID TO MOSCOW UNLESS IT HELPS IN A SPY CASE TOP US LAWMAKERS INCLUDING DEMOCRAT DECONCINI AND REPUBLICAN DOLE CALLED FOR A SUSPENSION OF THE AID UNLESS RUSSIA COOPERATES IN THE CASE OF ALDRICH AMES ACCUSED OF GIVING THE KGB DETAILS OF US SPY OPERATIONS BUT CLINTON CAUTIONED I THINK WE SHOULD BE CAREFUL BEFORE WE MAKE SPECIFIC DETERMINATIONS ABOUT AID FLOWS IN MOSCOW OFFICIALS APPEALED TO THE US NOT TO ALLOW THE AMES AFFAIR TO CAUSE A MAJOR POLITICAL RIFT AMES REMAINED IN JAIL BUT SAID THROUGH HIS LAWYER THAT HE WOULD PLEAD NOT GUILTY AND WASN'T BARGAINING WITH THE GOVERNMENT AT LEAST TWO US AGENTS OFFICIALS IN THE SOVIET GOVERNMENT WORKING FOR THE CIA WERE KILLED AFTER BEING EXPOSED BY AMES ACCORDING TO REPORTS THE CIA'S SPOKESMAN COULDN'T CONFIRM THE DEATHS MUSLIMS AND CROATS AGREED TO A COMPREHENSIVE TRUCE IN BOSNIA UNDER PRESSURE FROM THE WEST MILITARY CHIEFS OF THE MUSLIMLED GOVERNMENT AND THEIR SECONDSTRONGEST FOES THE CROATS SIGNED A CEASEFIRE ACCORD IN ZAGREB ALTHOUGH EARLIER TRUCES HAVE COLLAPSED THE ACCORD IS EXPECTED TO GAIN STRENGTH FROM CURRENT DIPLOMATIC EFFORTS TO EXTEND A TRUCE IN SARAJEVO TO THE REST OF BOSNIA CROATMUSLIM FIGHTING HAS RAGED FOR A YEAR IN CENTRAL AND SOUTHERN BOSNIA FOLLOWING THE COLLAPSE OF THEIR ALLIANCE AGAINST SERB FORCES IF IT IS TO SUCCEED THE MUSLIMCROAT TRUCE WILL HAVE TO MEAN AN END TO THE FIGHT FOR CONTROL OF MOSTAR WHERE 60000 MUSLIMS ARE TRAPPED IN A CROAT SIEGE THE SUPREME COURT GAVE US AGENCIES A BROAD SHIELD AGAINST LAWSUITS SEEKING MONEY DAMAGES BASED ON ALLEGED CONSTITUTIONAL VIOLATIONS THE DECISION SPECIFICALLY SHELTERED THE GOVERNMENT FROM SUITS ARISING FROM THE CLEANUP OF THE SAVINGSANDLOAN INDUSTRY A REPORT ON HEALTH CARE CHALLENGES THE POPULAR BELIEF THAT THE US CAN ACHIEVE ENORMOUS SAVINGS BY CURTAILING AGGRESSIVE HIGHTECHNOLOGY TREATMENT FOR DYING PATIENTS RUSSIA'S PARLIAMENT VOTED TO PARDON THE LEADERS OF AN ATTEMPTED AUGUST 1991 COUP AND HARDLINERS WHO LED AN ARMED REBELLION IN MOSCOW LAST OCTOBER THE AMNESTY MEASURE PASSED BY A 25367 VOTE WITH 28 ABSTENTIONS INDICATING THAT A NUMBER OF REFORMORIENTED AND CENTRIST PARTIES SUPPORTED IT A NEW FORESTMANAGEMENT PLAN CALLS FOR STRICTER LOGGING CONTROLS IN NORTHWEST FORESTS ADMINISTRATION OFFICIALS IN OUTLINING THEIR REVISED PLAN CITED EVIDENCE OF FURTHER DECLINES IN THE SPOTTED OWL POPULATION A SOUTH AFRICAN WOMAN WAS SHOT AND KILLED DURING A RALLY OF DE KLERK'S NATIONAL PARTY WHEN ONE OF HIS SUPPORTERS OPENED FIRE ON AFRICAN NATIONAL CONGRESS RIVALS THE PRESIDENT CANCELED A PLANNED APPEARANCE AT THE RALLY AFTER HE WAS HIT BY A ROCK EARLIER IN THE DAY MEXICAN REBELS REACHED TENTATIVE AGREEMENTS WITH GOVERNMENT NEGOTIATORS ON ABOUT ONEQUARTER OF THE INSURGENTS' DEMANDS A GUERRILLA LEADER SAID HE SAID THE ACCORDS DEALT WITH HEALTH HOUSING EDUCATION AND RESPECT AND DIGNITY FOR INDIGENOUS PEOPLES IN MEXICO HAITIAN MILITARY LEADERS ARE PREPARING TO INSTALL A TRANSITIONAL GOVERNMENT THAT COULD RULE UNTIL THE NATION'S POLITICAL CRISIS IS RESOLVED SOURCES CLOSE TO THE MILITARY SAID STILL TO BE DETERMINED THOUGH IS WHO WOULD HEAD THE THREEMAN JUNTA INTERNATIONAL EFFORTS HAVE STALLED ON RETURNING OUSTED PRESIDENT ARISTIDE TO POWER MUSLIM MILITANTS DETONATED A BOMB IN A FIRSTCLASS CAR ON AN EGYPTIAN PASSENGER TRAIN TRAVELING FROM CAIRO TO ASWAN SLIGHTLY INJURING SIX FOREIGN TOURISTS AND FIVE EGYPTIANS EGYPT'S MOST ACTIVE EXTREMIST GROUP THE GAMA'A WHICH SEEKS TO INSTALL A PURIST ISLAMIC STATE CLAIMED RESPONSIBILITY AIDID SAID HE AND OTHER SOMALI FACTION LEADERS ARE NEAR AGREEMENT ON A TRANSITIONAL GOVERNMENT AN INITIATIVE THE MILITIA CHIEF APPARENTLY HOPES WILL FOIL A UN DEMOCRACY PLAN AIDID SAID THE GOVERNMENT WOULD INCLUDE REPRESENTATIVES FROM 15 FACTIONS HONG KONG LAWMAKERS ADOPTED THE FIRST PHASE OF GOV PATTEN'S DEMOCRATIC REFORM PACKAGE IGNORING THE CHINESE GOVERNMENT'S THREATS TO SCRAP THE CHANGES WHEN IT TAKES OVER THE COLONY IN 1997 9402240153 940224 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 ARIZONA PUBLIC SERVICE CO 100 MILLION OF FIRSTMORTGAGE BONDS DUE MARCH 1 2004 PRICED AS 6625S AT 99531 TO YIELD 669 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP FEDERAL FARM CREDIT BANKS FUNDING CORP FOUR ISSUES OF THREEMONTH SIXMONTH THREEYEAR AND FIVEYEAR DEBT TOTALING 239 BILLION OF CONSOLIDATED SYSTEMWIDE BONDS ISSUE INCLUDES 114 BILLION OF BONDS DUE JUNE 1 AND PRICED AT 353 A SPREAD OF SIX BASIS POINTS ABOVE COMPARABLE TREASURYS 850 MILLION OF BONDS DUE SEPT 1 AND PRICED AT 377 A SPREAD OF FIVE BASIS POINTS ABOVE COMPARABLE TREASURYS 175 MILLION OF BONDS DUE MARCH 3 1997 AND PRICED AT 512 A SPREAD OF 13 BASIS POINTS ABOVE COMPARABLE TREASURYS AND 230 MILLION OF BONDS DUE MARCH 1 1999 AND PRICED AT 579 A SPREAD OF 22 BASIS POINTS ABOVE COMPARABLE TREASURYS FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE MARCH 3 2004 PRICED AT PAR TO YIELD 6615 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE MARCH 2 2009 PRICED AT PAR TO YIELD 684 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HOUSEHOLD INTERNATIONAL NETHERLANDS BV 175 MILLION OF GUARANTEED NOTES DUE MARCH 15 1999 PRICED AS 6S AT 9959 TO YIELD 6095 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HOUSEHOLD INTERNATIONAL NETHERLANDS BV IS A UNIT OF HOUSEHOLD INTERNATIONAL INC INTERNATIONAL LEASE FINANCE CORP 100 MILLION NOTES DUE MARCH 1 1998 PRICED AS 5625S AT 99523 TO YIELD 576 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE 5125 TREASURYS OF FEBRUARY 1998 THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P AND WAS SOLD THROUGH A COMPETITIVE BID WON BY LEHMAN BROTHERS INC INTERNATIONAL LEASE IS A UNIT OF AMERICAN INTERNATIONAL GROUP INC NATIONAL CITY CORP 250 MILLION OF SUBORDINATED NOTES DUE MARCH 1 2004 PRICED AS 6625S AT 99482 TO YIELD 6697 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC UNION TANK CAR CO 100 MILLION OF EQUIPMENTTRUST CERTIFICATES DUE FEB 15 1999 PRICED AT PAR TO YIELD 66 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC UNION TANK CAR IS A UNIT OF THE MARMON GROUP ARDEN INDUSTRIAL PRODUCTS INC INITIAL OFFERING 18 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY DAIN BOSWORTH INC AND JOHN G KINNARD & CO BIRGMINGHAM STEEL CORP FIVE MILLION COMMON SHARES PRICED AT 27875 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ELECTROGLAS INC TWO MILLION COMMON SHARES PRICED AT 2750 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC SOUTHERN PACIFIC RAIL CORP 25 MILLION COMMON SHARES PRICED AT 21 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HAWAII HOUSING FINANCE & DEVELOPMENT CORP 2705 MILLION OF SINGLEFAMILY MORTGAGE PURCHASE REVENUE BONDS PRICED BY A DEAN WITTER REYNOLDS INC GROUP INCLUDED IS 18326 MILLION OF 1994 SERIES A BONDS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX YIELDS RANGE FROM 4 IN 1997 TO 595 IN 2026 THE 87285 MILLION OF 1994 SERIES B BONDS NOT SUBJECT TO THE TAX IS PRICED TO YIELD 565 IN 2013 575 IN 2017 AND 585 IN 2027 MOODY'S RATED THE BONDS DOUBLEA AND S&P ASSIGNED A SINGLEA RATING FITCH INVESTORS SERVICE INC IS EXPECTED TO ASSIGN A DOUBLEA RATING OHIO TURNPIKE COMMISSION 125 MILLION OF 1994 SERIES A TURNPIKE REVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 31 IN 1995 TO 575 IN 2024 MOODY'S HAS RATED THE BONDS SINGLEA1 S&P HAS ASSIGNED A DOUBLEAMINUS RATING AND FITCH HAS ASSIGNED A SINGLEAPLUS RATING UNIVERSITY OF CALIFORNIA 137 MILLION OF SERIES 1994 HOSPITAL REVENUE REFUNDING BONDS FOR UCLA MEDICAL CENTER APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 325 IN 1995 TO 565 IN 2020 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 405 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1708 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED BY CITIBANK THE OFFERING SERIES 1706 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES BY LEHMAN BROTHERS INC THE OFFERING SERIES 199451 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCATION 150 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199449 IS BACKED BY VARIOUS FANNIE MAE REMIC TRANCHES AND FANNIE MAE STRIP CLASSES ASIAN DEVELOPMENT BANK SUPRANATIONAL 750 MILLION OF GLOBAL BONDS DUE MARCH 9 2004 PRICED AS 6125S AT ISSUE AND FIXED REOFFER PRICE 99117 VIA JOINT LEAD UNDERWRITERS IBJ INTERNATIONAL PLC AND SALOMON BROTHERS INC AT FIXED REOFFER PRICE THE BONDS YIELD 6245 A MARGIN OF 18 BASIS POINTS OVER THE COMPARABLE US TREASURY THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED TRIPLEA BY MOODY'S AND S&P FEES 0325 PAYABLE SEMIANNUALLY BANK NEDERLANDSE GEMEENTEN NV NETHERLANDS 250 MILLION GUILDERS OF 525 EUROBONDS DUE MARCH 23 1998 AT ISSUE PRICE 9988 VIA ABN AMRO BANK NV REOFFERED AT 9908 TO YIELD 5513 A MARGIN OF 313 BASIS POINTS OVER INTERPOLATED DUTCH STATELOAN YIELD CURVE CALLABLE ON MARCH 23 1995 AT PAR TO YIELD 6227 FEES ONE CHINESE ESTATES HOLDINGS LTD HONG KONG 110 MILLION OF CONVERTIBLE EUROBONDS DUE MARCH 24 2001 AT ISSUE PRICE PAR VIA JARDINE FLEMING INDICATED COUPON 4 CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 16 TO 18 FROM APRIL 4 TO FEB 10 2001 PUT OPTION EXERCISABLE IN YEAR FIVE AT PRICE TO YIELD 175 BASIS POINTS OVER FIVEYEAR US TREASURY CALLABLE AFTER THREE YEARS AT ACCRETED VALUE UNTIL END OF YEAR FIVE THEREAFTER CALLABLE AT PAR IF SHARE PRICE EXCEEDS 140 OF CONVERSION PRICE FEES UNDECIDED COPENHAGEN MUNICIPALITY ONE BILLION DANISH KRONER OF 625 GLOBAL BONDS AT ISSUE AND REOFFER PRICE 9866 DUE MARCH 15 2001 VIA UNIBANK AS BONDS YIELD 6494 A MARGIN OF 30 BASIS POINTS OVER 9 DANISH GOVERNMENT NOTE OF 2000 FEES 0325 ERIDANIA BEGHIN SAY SA FRANCE 15 BILLION FRENCH FRANCS OF 65 EUROBONDS DUE MARCH 28 2002 AT ISSUE PRICE 10033 VIA SOCIETE GENERALE REOFFERED AT 98855 TO YIELD 669 A MARGIN OF 72 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 1875 HOKUETSU PAPER MILLS LTD JAPAN 70 MILLION OF 175 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 17 1998 AT ISSUE PRICE 1025 VIA YAMAICHI INTERNATIONAL EUROPE LTD GUARANTOR DAIICHI KANGYO BANK LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM APRIL 1 TO MARCH 10 1998 AT 25 INDICATED PREMIUM TERMS TO BE FIXED TUESDAY FEES 225 POINTS LESS 02 FOR LEAD MANAGER NICHIHA CORP JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 17 1998 WITH EQUITY WARRANTS CARRYING 0125 COUPON AT PAR VIA BANCA DEL GOTTARDO NOTES EXERCISABLE FROM APRIL 1 TO MARCH 3 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS TO BE FIXED MONDAY FEES 1625 PRIMARY INDUSTRY BANK OF AUSTRALIA LTD AUSTRALIA 75 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE PAR VIA SANWA INTERNATIONAL PLC PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE PLUS 30 BASIS POINTS CALLABLE ON MARCH 1997 INTERESTPAYMENT DATE AT PAR FEES 02 TRANSATLANTIC HOLDINGS PLC UK 250 MILLION OF 55 CONVERTIBLE EUROBONDS DUE APRIL 30 2009 AT ISSUE PRICE PAR VIA UBS LTD CONVERTIBLE INTO ORDINARY COMPANY SHARES AT 505 PENCE A 1222 PREMIUM OF 1222 OVER TUESDAY CLOSING SHARE PRICE CALLABLE FROM MAY 1 2001 AT 103 DECLINING BY 1 ANNUALLY TO PAR FEES 25 LESS 025 FOR LEAD MANAGER PAYABLE SEMIANNUALLY URUGUAY SOVEREIGN 100 MILLION OF 725 EUROBONDS DUE MARCH 7 2001 AT ISSUE AND REOFFER PRICE 99675 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 731 A MARGIN OF 158 BASIS POINTS OVER COMPARABLE US TREASURY FEES UNDISCLOSED PAYABLE SEMIANNUALLY 9402240152 940224 JAPANESE PLANTS IN US NEW YORK THE NUMBER OF JAPANESEAFFILIATED MANUFACTURING PLANTS IN THE US DROPPED LAST YEAR THE FIRST DECLINE SINCE A JAPANESE GOVERNMENT TRADE GROUP BEGAN ITS SURVEY 13 YEARS AGO PLANT CLOSINGS AND THE SALE OF JAPANESEAFFILIATED PLANTS WERE THE MAIN REASONS THE NUMBER FELL TO 1695 PLANTS DOWN 17 FROM 1724 IN 1992 ACCORDING TO THE JAPAN EXTERNAL TRADE ORGANIZATION THE PLANTS AVERAGED AN EMPLOYMENT OF 233 DOWN FROM 294 IN 1992 MAINLY BECAUSE OF CORPORATE RESTRUCTURING TOTAL EMPLOYMENT AT JAPANESEAFFILIATED PLANTS IS ESTIMATED AT ABOUT 400000 9402240151 940224 MARKETING BRIEF NOTED THEME PARKS ANHEUSERBUSCH COS ST LOUIS NAMED THE WILLIAM MORRIS AGENCY TO REPRESENT SEA WORLD BUSCH GARDENS AND OTHER THEME PARKS OPERATED BY BUSCH ENTERTAINMENT CORP THE LOS ANGELES TALENT AGENCY WILL BE RESPONSIBLE FOR INCREASING PUBLIC EXPOSURE OF THE PARKS AND RELATED PROJECTS IN TELEVISION HOME VIDEO PUBLISHING AND LICENSING 9402240150 940224 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 335 30 TO 44 DAYS 342 45 TO 59 DAYS 347 60 TO 89 DAYS 352 90 TO 149 DAYS 360 150 TO 179 DAYS 365 180 TO 239 DAYS 370 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 344 30 DAYS 352 60 DAYS 358 90 DAYS CERTIFICATES OF DEPOSIT 273 ONE MONTH 281 TWO MONTHS 287 THREE MONTHS 307 SIX MONTHS 334 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 335 ONE MONTH 352 THREE MONTHS 374 SIX MONTHS BANKERS ACCEPTANCES 335 30 DAYS 342 60 DAYS 346 90 DAYS 352 120 DAYS 360 150 DAYS 365 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/16 3 5/16 ONE MONTH 3 9/16 3 7/16 TWO MONTHS 3 5/8 3 1/2 THREE MONTHS 3 11/16 3 9/16 FOUR MONTHS 3 13/16 3 11/16 FIVE MONTHS 3 7/8 3 3/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 5/8 THREE MONTHS 3 7/8 SIX MONTHS 4 3/16 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 592 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 731 60 DAYS 737 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 727 60 DAYS 736 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 535 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402240149 940224 FIRST VIRGINIA BANKS INC SHARES FALLS CHURCH VA THE DIRECTORS OF FIRST VIRGINIA BANKS INC APPROVED THE PURCHASE OF AS MANY AS ONE MILLION SHARES OF THE COMPANY'S COMMON STOCK TO BE USED FOR EMPLOYEE STOCK PLANS ACQUISITIONS AND OTHER CORPORATE PURPOSES THE BOARD ALSO APPROVED THE ISSUANCE OR BUYBACK OF AS MANY AS AN ADDITIONAL ONE MILLION SHARES OVER THE NEXT FIVE TO 10 YEARS FOR ITS DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN AS OF THE END OF 1993 THE BANK HOLDING COMPANY HAD AN AVERAGE OF 325 MILLION SHARES OUTSTANDING 9402240148 940224 PEPPERAND SALT ALTHOUGH THEIR ETHICS GRADES ARE FAILING BUT NOW IN AUTUMN I GROW SAGE 9402240147 940224 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO JOHN R LEACH WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTERN AUTO SUPPLY CO A UNIT OF THIS RETAIL AND INSURANCE CONCERN MR LEACH HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF WESTERN AUTO SUPPLY 9402240146 940224 WHO'S NEWS MATTHEWS STUDIO EQUIPMENT GROUP MATTHEWS STUDIO EQUIPMENT GROUP BURBANK CALIF TERRY A WORSDELL WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE SUPPLIER OF SUPPORT EQUIPMENT TO THE ENTERTAINMENT INDUSTRY HE SUCCEEDS NEIL KAPLAN 53 YEARS OLD WHO RETIRED AS CHIEF FINANCIAL OFFICER THE POST OF EXECUTIVE VICE PRESIDENT IS NEW MR WORSDELL 49 PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR OF ENTREPRENEUR MEDIA INC 9402240145 940224 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY AT THE SKI JUMP PHILOSOPHY IN MOTION BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER MAN SAYS GUNNAR BREIVIK MUST EXIST IN A STATE OF BALANCE BETWEEN RISK AND SAFETY PURE RISK LEADS TO SELFDESTRUCTION PURE SAFETY LEADS TO STAGNATION IN BETWEEN LIES SURVIVAL AND PROGRESS MR BREIVIK IS NORWAY'S LEADING PHILOSOPHER OF SPORT JUST NOW THE PARTICULAR MAN HE IS PONDERING IS ESPEN BREDESEN SAILING FAR ABOVE HIS HEAD AT 90 KILOMETERS AN HOUR AT THE LYSGARDSBAKKENE SKI JUMPING ARENA UNDER A COLD BLUE SKY THE PACKED STADIUM ROARS AND WAVES A SEA OF FLAGS THE YOUNG NORWEGIAN JUMPER TOUCHES DOWN WITH AN ASTONISHING 1355METER JUMP MR BREIVIK THUMPS HIS THIGHS WITH DELIGHT AND RESUMES HIS TRAIN OF THOUGHT IN NORWAY WE HAVE TWO ATTITUDES TOWARDS RISK AND SAFETY THE FIRST NORWEGIANS MUST HAVE BEEN HIGH SENSATIONSEEKERS BECAUSE NO ONE ELSE WOULD HAVE SETTLED HERE WE HAVE A VERY BIG COASTLINE VERY DANGEROUS COLD WATER A LOT OF STORMS BUT THEN WE HAVE THE INLAND TRADITION WHERE FARMERS WORK AS THE YEAR REPEATS ITSELF IN CYCLES AND YOU MUST PLAN WHAT YOU HAVE TO DO THERE AREN'T MANY OTHER SEMINARS ON THE ONTOLOGY OF RISK UNDER WAY HERE AT THE OLYMPICS BUT THE PRACTICE OF SPORTS PHILOSOPHY TAKES MR BREIVIK TO SURPRISING PLACES HE TEACHES IN THE SOCIAL SCIENCE DEPARTMENT OF THE NORWEGIAN UNIVERSITY OF SPORT IN OSLO AND STUDIES THE SUBJECT FIRSTHAND USING WHITEWATER RAFT ROCKWALL AND PARACHUTE MY PHILOSOPHY IS YOU SHOULD TAKE MORE RISKS AS YOU GROW OLDER BECAUSE YOU HAVE LESS TO LOSE EXPLAINS THE 50YEAROLD SCHOLAR LAST FALL HE TRAVELED TO FORT WORTH TEXAS FOR THE ANNUAL MEETING OF THE PHILOSOPHIC SOCIETY FOR THE STUDY OF SPORT TO DELIVER A PAPER CALLED SOME COMMENTS ON THE EPISTEMOLOGY OF MOVEMENT ITS THESIS MOTION IS A MORE NATURAL STATE FOR MAN THAN REST HE QUOTED HIS MENTOR THE GREAT NORWEGIAN SPORTS PHILOSOPHER AND MOUNTAINEER ARNE NAESS WHO WAS ASKED AT AGE 70 WHY HE HAD CONTINUED TO CLIMB WHY HAVE YOU STOPPED MR NAESS REJOINED MR BREIVIK MADE HIS POINT IN FORT WORTH BY STRIDING VIGOROUSLY ABOUT THE SEMINAR ROOM AS HE LECTURED IT IS MORE NATURAL AND BETTER TO WALK WHILE THINKING AND DISCUSSING DEEP MATTERS HE DECLARED CITING THE GREEK PERIPATETIC SCHOOL AND NIETZSCHE'S SEMINAL HIKES IN THE ALPS HE HAS ALSO WRITTEN EXTENSIVELY ABOUT WHAT DRIVES ATHLETES TO TAKE PERFORMANCEENHANCING DRUGS AND THE ROLE OF LOMBARDIAN AND MACHIAVELLIAN PREFERENCE STRUCTURES THAT'S VINCE AND NICCOLO FOR YOU SPORTSPHILOSOPHY FANS WHO JOINED THE GAME LATE SKI JUMPING HAS ALWAYS BEEN A FRUITFUL SUBSPECIALTY FOR MR BREIVIK A RAWBONED MAX VON SYDOW LOOKALIKE WITH AN UNRULY SHOCK OF BLOND HAIR AS A BOY HE THRILLED TO THE OLYMPIC GOLDMEDAL JUMPS OF HIS COUNTRYMEN ARNFINN BERGMANN AND TORALF ENGAN TODAY HIS UNIVERSITY STUDENTS INCLUDE NORWAY'S GREATEST MODERN JUMPER MR BREDESEN LAST SUMMER MR BREIVIK LED A GROUP OF COLLEAGUES TO A CAMP IN THE WOODS WHERE THE NORWEGIAN JUMPING TEAM WAS TRAINING BY PARACHUTING OUT OF AN AIRPLANE MR BREIVIK'S TEAM MONITORED THE JUMPERS' BREATHING HEART RATE AND PSYCHOLOGICAL STATE AND CAME TO SOME UNEXPECTED FINDINGS ABOUT FEAR AND FLYING THE RESEARCHERS EXPECTED TO FIND THAT THE BEST JUMPERS STAY COOL UNDER PRESSURE STEADY BREATHING LOW RESPIRATION LITTLE FEAR IN FACT THE COOLEST JUMPERS WERE FLOPS THEY USE A LOT OF ENERGY TO SUPPRESS THEIR FEAR AND THAT GIVES THEM LESS ENERGY FOR TASKORIENTED BEHAVIOR MR BREIVIK CONCLUDED ON THIS MORNING THE PHILOSOPHER HAS RISEN EARLY TO WATCH SKI JUMPING IN ITS LEAST THEORETICAL MANIFESTATION AT HIS COUNTRY COTTAGE IN SJUSJOEN HE STRAPS ON HIS CROSSCOUNTRY SKIS AND TRAVERSES A 15KILOMETER TRAIL TO LILLEHAMMER AT THE JUMP ARENA HE DOWNS A THICK SANDWICH AND A THERMOS OF COFFEE AND FINDS HIS SEAT HE SOBERLY SURVEYS THE CROWD SOLD OUT FOR ONE OF NORWAY'S MOST FEVERISHLY POPULAR SPORTS EVENTS AND IS THRILLED TO SPOT HIS CHILDHOOD HEROES MESSRS BERGMANN AND ENGAN STANDING TOGETHER IN THE VIP SECTION UP IN THE AIR HE ALSO SPOTS HIS STUDENT MR BREDESEN FLOATING IN A PRACTICE JUMP TO MR BREIVIK HIS TALENTED STUDENT OFFERS A PARADIGM OF THE IDEAL RISK/SAFETY RELATIONSHIP PURE SENSATIONSEEKERS SCORE HIGH ON MILD PSYCHOPATHY THEY WANT TO REACH THEIR GOALS NO MATTER WHAT AND THEY HAVE LOW SCORES ON EMPATHY HE SAYS BUT THE 26YEAROLD MR BREDESEN HAS A COUNTERBALANCING CONTROL AND STABILITY THE JUMPER LANDS BEAUTIFULLY AND THRUSTS HIS ARMS IN THE AIR THE PLEASURE OF SKI JUMPING ARISES MR BREIVIK BELIEVES FROM THE SAME SOURCE AS OTHER HUMAN PLEASURES OUR NEED FOR CONTRAST FOOD TASTES BEST AFTER WE'RE HUNGRY FIRE FEELS WARMEST AFTER WE'RE FREEZING STANDING ON THE GROUND FEELS MOST COMFORTABLE AFTER WE'RE PLUNGING INSANELY THROUGH THE AIR AT BREAKNECK SPEEDS BACK IN OSLO MR BREIVIK HAS PROPOUNDED HIS IDEAS ABOUT RISK IN SOME UNUSUAL WAYS HE MADE A STIR AT A SPORTS CONFERENCE BY PUBLICLY DECLARING THAT NORWAY HAS TOO FEW CHILDHOOD ACCIDENTS HE SAW THAT AS A SIGN THAT NORWEGIAN KIDS SPEND TOO MUCH TIME WATCHING TV AND NOT ENOUGH TIME EXPERIENCING THE RIGORS OF NATURE THE NORWEGIAN HEALTH DEPARTMENT CALLED HIM AFTERWARD AND TOLD HIM TO KEEP HIS THEORIES TO HIMSELF MR BREIVIK IS ALSO LOBBYING NORWAY'S TRANSPORTATION DEPARTMENT TO BUILD SPECIAL ARENAS FOR RISKHUNGRY TEENAGERS TO DRIVE RECKLESSLY THAT WAY THEY CAN FULFILL THEIR SENSATIONSEEKING NEEDS WITHOUT ENDANGERING INNOCENT DRIVERS HE ARGUES AT THE SKIJUMP ARENA MR BREDESEN HAS EXECUTED TWO FLAWLESS AND UTTERLY SAFE LEAPS BUT GERMAN JENS WEISSFLOG WHO SEEMS TO IGNITE A BOOSTER ENGINE IN MIDAIR CLAIMS THE GOLD MR BREIVIK THINKS HIS STUDENT WILL BE CONTENT WITH THE SILVER HE IS A HAPPY PERSON HE SAYS HE HAS FOUND A SPORT THAT MAKES IT POSSIBLE TO FLY THROUGH THE AIR AND WITH THAT THE PHILOSOPHER PICKS UP HIS SKIS AND HEADS HOME 9402240144 940224 INTERNATIONAL SOUTH AFRICA'S ELECTIONS SPARK TENSION FEAR OF WAR CONFUSION MAR NEW VOTERS' LIBERATION EUPHORIA BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL CAPE TOWN SOUTH AFRICA MEERA HOOSAN'S JOB IS TO TEACH SOUTH AFRICANS HOW TO VOTE BUT HOW TO DO THAT WHEN SHE DOESN'T KNOW WHAT TO TEACH MS HOOSAN THE ELECTIONS TRAINING ADMINISTRATOR IN THE AFRICAN NATIONAL CONGRESS'S OFFICE HERE CAN'T TELL ILLITERATE VOTERS ON WHAT LINE TO PUT A CROSS BECAUSE SHE'S NOT SURE IN WHAT ORDER THE PARTIES WILL BE LISTED ON THE BALLOT SHE CAN'T EVEN TELL THEM HOW MANY PARTIES WILL PARTICIPATE IN THE APRIL 26TOAPRIL 28 ELECTIONS NOR DOES SHE KNOW WHETHER THERE WILL BE ONE SINGLE BALLOT OR TWO SEPARATE ONES ONE FOR THE NATIONAL PARLIAMENT AND ANOTHER FOR REGIONAL LEGISLATURES IT'S QUITE CONFUSING SUMS UP MS HOOSAN THIS IS ALL VERY NEW FOR SOUTH AFRICA MS HOOSAN'S CONFUSION MIRRORS THAT OF SOUTH AFRICA AS IT NEARS ITS FIRSTEVER MULTIRACIAL DEMOCRATIC ELECTIONS WITH THE COUNTRY WRACKED BY WORSENING FACTIONAL VIOLENCE THE LIBERATION MANY FEEL AT THE PROSPECT OF VOTING FOR THE FIRST TIME IS TEMPERED BY FEAR OF A FULLFLEDGED CIVIL WAR AND A SENSE OF FOREBODING MANY BLACKS ARE WONDERING WILL THE NEW GOVERNMENT DELIVER ON ITS PROMISES OF A BETTER LIFE FOR ALL AND MANY WHITES ARE FRETTING THAT THE COUNTRY'S ECONOMY WILL GO THE WAY OF MOST OF THE REST OF AFRICA AS IT COMES UNDER BLACK RULE ONE THING IS PRACTICALLY CERTAIN THE ANC APPEARS HEADED FOR A BIG VICTORY WITH POLLS SHOWING IT GARNERING AS MUCH AS 65 OF THE VOTE THIS WOULD CARRY NELSON MANDELA TO SOUTH AFRICA'S PRESIDENCY ONLY FOUR YEARS AFTER PRESIDENT FW DE KLERK FREED THE ANC LEADER FROM 27 YEARS IN JAIL UNLEASHING WHAT HAS BEEN CALLED A NEGOTIATED REVOLUTION THE ANC ALREADY IS CONSIDERED A GOVERNMENTINWAITING BUT THE ONLY OTHER CERTAINTY IS THAT A POSTAPARTHEID SOUTH AFRICA WILL BE A PRESSURECOOKER OF ETHNIC AND POLITICAL TENSIONS THIS WAS UNDERSCORED OVER THE WEEKEND WHEN A SERIES OF CONFRONTATIONS LEFT 34 PEOPLE DEAD IN ONE INCIDENT 15 ANC ELECTION WORKERS PREPARING FOR A VOTER EDUCATION MEETING IN A VILLAGE IN NATAL PROVINCE WERE KILLED BY UNKNOWN ASSAILANTS THE ELECTORAL PROCESS ITSELF IS UNDER A CLOUD OF UNCERTAINTY THE MAJOR THREAT COMES FROM THE FREEDOM ALLIANCE A MOTLEY COALITION OF THE ZULUBASED INKATHA FREEDOM PARTY WHICH WANTS GREATER AUTONOMY FOR THE KWAZULU HOMELAND THE WHITE RIGHTWING AFRIKANER VOLKSFRONT WHICH IS DEMANDING A HOMELAND FOR WHITE AFRIKANERS AND THE GOVERNMENT OF NOMINALLY INDEPENDENT BOPHUTATSWANA WHICH IS RESISTING REINCORPORATION INTO SOUTH AFRICA THEY ARE THREATENING TO BOYCOTT THE ELECTIONS WHILE MANY ANALYSTS PORTRAY THE FREEDOM ALLIANCE AS A GROUP OF DISGRUNTLED POLITICIANS WHO STAND TO LOSE THEIR POWER IN A NEW SOUTH AFRICA ITS LEADERS MAKE THEIR CASE ON CONSTITUTIONAL GROUNDS THEY CLAIM THAT THE GOVERNMENT AND THE ANC ARE TRYING TO STEAMROLL THEM INTO ACCEPTING AN INTERIM CONSTITUTION THAT WILL CREATE AN ALLPOWERFUL CENTRAL GOVERNMENT THEY WANT A FEDERAL FORM OF GOVERNMENT THAT WOULD ALLOW FOR A STRONG MEASURE OF AUTONOMY IN A BID TO EASE THE TENSION MR MANDELA LAST WEEK UNVEILED A SET OF CONCESSIONS INCLUDING ILLDEFINED POWERS OF TAXATION FOR PROVINCIAL GOVERNMENTS MEASURES TO ENSURE THAT PROVINCIAL GOVERNMENT POWERS AREN'T SUBSTANTIALLY DIMINISHED' BY THE CONSTITUTION TO BE DRAFTED AFTER THE ELECTIONS A CONSTITUTIONAL PRINCIPLE THAT WOULD ALLOW FOR THE CONSIDERATION OF A WHITE HOMELAND AND THE ACCEPTANCE OF A TWOBALLOT SYSTEM WE MUST TREAT THE THREAT OF CIVIL WAR SERIOUSLY MR MANDELA SAID THAT IS WHY WE HAVE GONE OUT OF OUR WAY TO MAKE THESE CONCESSIONS BUT EVEN BEFORE A FREEDOM ALLIANCE MEETING TO CONSIDER THE PROPOSALS INKATHA LEADER CHIEF MANGOSUTHU BUTHELEZI QUICKLY REJECTED THEM SAYING MR MANDELA'S STATEMENT AMOUNTS TO NO MORE THAN CHEAP POLITICKING ON LIFEANDDEATH ISSUES IT'S UNCLEAR HOW THE FREEDOM ALLIANCE WOULD PRESS ITS CASE IF ITS DEMANDS AREN'T MET BEFORE THE ELECTIONS BUT ITS STAND RAISES THE POSSIBILITY THAT MILLIONS OF VOTERS WON'T GO TO THE POLLS CASTING DOUBTS OVER THE FAIRNESS OF THE ELECTIONS NO ONE HAS EXPLAINED TO ME HOW POLLING BOOTHS WILL BE PUT UP IF THEY STAY OUT OF THE ELECTIONS SAYS STEVEN FRIEDMAN DIRECTOR OF THE CENTER FOR POLICY STUDIES IN JOHANNESBURG IT COULD GET VERY NASTY BY STAYING OUT THE FREEDOM ALLIANCE IS ALSO RAISING DOUBTS OVER THE STABILITY OF SOUTH AFRICA AFTER THE ELECTIONS WHICH COULD CAUSE PROBLEMS FOR SOUTH AFRICA'S ECONOMY AFTER YEARS OF RECESSION WORSENED BY INTERNATIONAL SANCTIONS THE COUNTRY SEEMS ON THE REBOUND THE ECONOMY GREW ABOUT 1 LAST YEAR AND INFLATION FELL TO 97 THE FIRST SINGLEDIGIT FIGURE SINCE 1973 AFTER SHUNNING THE COUNTRY FOR YEARS FOREIGN INVESTORS ARE AGAIN LOOKING AT SOUTH AFRICA AND FOREIGN LOANS ARE COMING BACK TOO THIS WILL BE VITAL FOR THE NEW GOVERNMENT AS IT FACES MASSIVE DEMANDS FOR HOUSING AND SOCIAL SERVICES FROM ITS LONGDISENFRANCHISED BLACK POPULATION JUST AS DOMESTIC WHITE CAPITAL IS REPORTED TO BE FLOWING OUT OF THE COUNTRY BUT ECONOMISTS WARN THAT THE EXPECTED INFLOW OF INVESTMENTS AFTER THE ELECTIONS WON'T MATERIALIZE IF VIOLENCE CONTINUES ANOTHER POSSIBLE DETERRENT IS THE ANC'S CONTRADICTORY STATEMENTS ON ECONOMIC POLICY ALTHOUGH IT HAS MOVED AWAY FROM ITS PAST DOGMA ON NATIONALIZATION OF MAJOR INDUSTRIES THE ANC STILL ADVOCATES A LEADING ROLE FOR THE STATE IN THE ECONOMY WHEN MINING EXECUTIVES FIRED A BROADSIDE AT ANC PLANS TO CREATE A CENTRAL MARKETING BOARD AND REFERENCES TO GOVERNMENT INTERVENTION IN OUTPUT AND PRICING DECISIONS THE ANC PROMISED TO HOLD EXTENSIVE CONSULTATIONS WITH THEM BEFORE IMPLEMENTING ANY CHANGES BUT ONE WEEK LATER MR MANDELA ADDRESSING MINE WORKERS SAID AN ANCLED GOVERNMENT WILL WREST MINERAL RIGHTS FROM MINING HOUSES AND PLACE THEM IN THE HANDS OF THE STATE COMMENTED ONE BUSINESSMAN THE ANC TELLS UNIONS ONE THING AND FOREIGN INVESTORS ANOTHER WE DON'T KNOW WHAT SIDE OF THEIR MOUTH TO BELIEVE 9402240143 940224 DIME SAVINGS COMPLETES SALE NEW YORK DIME SAVINGS BANK OF NEW YORK SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF 324 MILLION OF NONPERFORMING MORTGAGES AND RESIDENTIAL REAL ESTATE NETTING ABOUT 265 MILLION DIME SAID THE IMPACT FROM THE SALE WAS INCLUDED IN ITS 1993 EARNINGS REPORT THE ASSETS WERE PURCHASED BY TWO WALL STREET INVESTMENT FIRMS THAT DIME DECLINED TO IDENTIFY 9402240142 940224 WHO'S NEWS FRUEHAUF TRAILER CORP FRUEHAUF TRAILER CORP SOUTHFIELD MICH WILLIAM P PANNY 65YEAROLD RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MLX CORP WAS ELECTED A DIRECTOR OF THIS TRAILER SUPPLIER INCREASING THE BOARD'S SIZE TO SIX DIRECTORS 9402240141 940224 CORPORATE FOCUS NATIONAL STEEL FACES HURDLES BLOCKING A TURNAROUND LABOR AND OPERATIONS PROBLEMS BRING LOSSES WHILE INDUSTRY IS IN RECOVERY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL STEEL CORP PLAGUED BY QUALITY LABOR AND OPERATIONS PROBLEMS THAT HAVE EXCLUDED IT FROM THE STEEL INDUSTRY'S RECOVERY FACES BIG OBSTACLES FASHIONING A TURNAROUND THE NO 4 STEELMAKER SAYS IT'S GAME MANAGERS WHO AMONG OTHER THINGS WERE DIVERTED BY A HEADQUARTERS MOVE ARE ONCE AGAIN FOCUSING ON THE BASICS OF STEELMAKING AND TRYING TO OVERCOME STARTUP GLITCHES SOME CUSTOMERS FORCED TO LOOK ELSEWHERE FOR STEEL LAST QUARTER SEEM WILLING TO GIVE NATIONAL A SECOND CHANCE WE BELIEVE WE'RE GOING TO SEE PROFITS IN THE SECOND QUARTER SAYS RONALD H DOERR NATIONAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER YET SUCCESS COULD PROVE DIFFICULT THE MISHAWAKA INDBASED COMPANY IS ALSO BURDENED BY HIGH COSTS A WEAK BALANCE SHEET AND BIG CAPITAL SPENDING REQUIREMENTS MOREOVER LOWCOST MINIMILLS ARE SPRINGING UP AROUND ITS BIG GRANITE CITY ILL PLANT IF YOU'RE GOING TO HAVE SOME BAD LUCK THEY HAD IT ALL IN 1993 SAYS HARRY LESTER DIRECTOR OF THE UNITED STEELWORKERS UNION DISTRICT THAT INCLUDES NATIONAL PASTDUE ORDERS DOUBLED AND NATIONAL WAS FORCED TO CUT ITS ORDERS BY 100000 TONS IN DECEMBER PROMPTING CUSTOMERS TO LOOK ELSEWHERE THE COMPANY'S YIELD THE AMOUNT OF LIQUID STEEL THAT IS EVENTUALLY SHIPPED AS FINISHED PRIME STEEL FELL AS NATIONAL HIT KINKS WITH THE STARTUP OF ITS JOINTVENTURE GALVANIZING LINE NATIONAL ALSO MISSED CUSTOMER SPECIFICATIONS HALF THE TIME IN MAKING ULTRALOW CARBON STEEL USING A NEW VACUUM DEGASSING PROCESS NATURALLY THERE ARE SOME LOSSES THAT GO WITH THESE THINGS MR DOERR SAYS THESE PROBLEMS AND OTHERS RESULTED IN A FOURTHQUARTER NET LOSS OF 1388 MILLION WORSE THAN THE 99 MILLION LOSS IN THE YEAREARLIER PERIOD EVEN AFTER SUBTRACTING 1077 MILLION IN CHARGES NATIONAL SHOWED A LOSS WHICH IS BECOMING RARE INDUSTRYWIDE AS SHIPMENTS AND PRICES CLIMB IN A STRENGTHENING ECONOMY SHORTLY AFTER NATIONAL RELEASED ITS FINANCIAL RESULTS JAMES N HOWELL THE COMPANY'S CHIEF OPERATING OFFICER RESIGNED THE LATEST IN A MAJOR MANAGEMENT SHAKEUP THAT HAS INCLUDED THE GENERAL MANAGERS OF THE STEELMAKER'S THREE MAJOR PLANTS MR DOERR BLAMES NATIONAL'S AILMENTS ON DISTRACTIONS AMONG THEM WERE THE HEADQUARTERS MOVE TO MISHAWAKA FROM PITTSBURGH COKE OVEN AND GALVANIZING LINE STARTUPS AN INITIAL PUBLIC OFFERING AND LABOR CONTRACT NEGOTIATIONS THESE FACTORS RESULTED IN A FAILURE TO EXECUTE THE BASIC BLOCKING AND TACKLING OF MANAGEMENT MR DOERR SAYS NOW NATIONAL WHICH IS 76 CONTROLLED BY NKK CORP OF JAPAN IS FIGHTING TO WIN BACK CUSTOMERS' CONFIDENCE MR DOERR SAYS NATIONAL IS REACHING CUSTOMER SPECIFICATIONS 70 OF THE TIME ON ULTRALOW CARBON STEEL AND THE COMPANY SHOULD SEE HIGHER OVERALL YIELDS BUTLER MANUFACTURING CO IS WATCHING NATIONAL'S PROGRESS CLOSELY THE KANSAS CITY MOBASED MAKER OF STEEL BUILDINGS LOOKED TO NATIONAL FOR MUCH OF ITS STEEL BEFORE NATIONAL'S STRING OF PROBLEMS WHICH FORCED BUTLER TO DIVIDE MORE OF ITS BUSINESS AMONG OTHER STEELMAKERS WE UNDERSTAND THAT PEOPLE HAVE OPERATING PROBLEMS SAYS DON PRATT BUTLER'S PRESIDENT ADDING THAT NATIONAL COULD EARN THEIR WAY BACK BUT THEY HAVE TO TELL US THAT THEY'RE READY FOR MORE TONNAGE HE ADDS NATIONAL SAYS IT'S HEADING IN THAT DIRECTION BUT OTHER HURDLES STAND IN ITS PATH THE COMPANY'S GRANITE CITY PLANT IS WATCHING NEARBY MINIMILLS EXPAND WHILE OTHERS ARE SETTING UP SHOP THE PLANT ALREADY SITS BETWEEN NUCOR CORP'S TWO FLATROLLED MILLS ONE IN HICKMAN ARK AND THE OTHER IN CRAWFORDSVILLE IND CHARLOTTE NCBASED NUCOR IS EXPANDING CAPACITY AT BOTH MILLS BY A COMBINED 18 MILLION TONS THIS YEAR MEANWHILE A JOINTVENTURE MINIMILL BETWEEN CANADA'S COSTEEL INC AND DOFASCO INC IS SLATED TO START UP NEXT YEAR IN GALLATIN COUNTY KY WITH CAPACITY OF ABOUT ONE MILLION TONS A YEAR AND REGINA SASKATCHEWANBASED IPSCO INC HAS PLANS FOR A FLATROLLED MINIMILL IN IOWA WITH ONE MILLION TONS A YEAR OF CAPACITY IT'S SCHEDULED TO START UP IN EARLY 1996 NATIONAL'S GRANITE CITY MILL ENTERS THIS BATTLE WITH ANTIQUATED AMMUNITION ITS HOTSTRIP MILL WHICH PROCESSES SLABS OF STEEL INTO FLATROLLED STEEL LACKS THE MODERN GAUGE AND SHAPE CONTROLS THAT ITS COMPETITORS HAVE SAYS JOHN C TUMAZOS AN ANALYST WITH DONALDSON LUFKIN & JENRETTE MR DOERR SAYS NATIONAL HAS STARTED UPGRADING THE HOTSTRIP MILL A 100 MILLION THREEYEAR PROJECT A TOTAL MODERNIZATION OF THE GRANITE CITY MILL COULD EASILY TOP 200 MILLION ESTIMATES MR TUMAZOS STILL SOME ANALYSTS POINT OUT THAT NATIONAL FORKED OUT ITS BIGGEST AMOUNT EVER 350 MILLION FOR ONE PROJECT FOR A NEW COKE OVEN AT ITS GREAT LAKES MILL OUTSIDE DETROIT IT SHOULD'VE SPENT THE MONEY ON IMPROVING FINISHING OPERATIONS TO MEET CUSTOMERS' GROWING DEMANDS FOR BETTERQUALITY STEEL THEY SAY ESPECIALLY SINCE COKE SUBSTITUTES ARE IN THE WORKS MR DOERR SAYS NATIONAL NEEDED A DEPENDABLE SUPPLY OF COKE USED IN BLAST FURNACES IN MAKING LIQUID IRON AND THAT VIABLE COKE ALTERNATIVES REMAIN LONG SHOTS WE WANTED TO BE SURE THAT AT THE END OF THE DAY WE WERE GOING TO BE ABLE TO SATISFY OUR CUSTOMERS' NEEDS HE SAYS NATIONAL'S NEED FOR CAPITAL SPENDING IS DRIVEN LARGELY BY ONE OF ITS BIGGEST CUSTOMERS THE AUTOMOTIVE INDUSTRY WHICH DEMANDS THE HIGHESTQUALITY STEEL BUT CAN NATIONAL AFFORD IT ITS BALANCE SHEET IS WEAK MR TUMAZOS ESTIMATES FIVE POSSIBLE ACCOUNTING ADJUSTMENTS INCLUDING THE ECONOMIC COSTS OF LIFETIME EMPLOYMENT GUARANTEES AND EVENTUALLY SHUTTING ITS GRANITE CITY MILL COULD CUT NATIONAL'S COMMON EQUITY TO A 300 MILLION DEFICIT FROM 2085 MILLION ON THE POSITIVE SIDE NATIONAL'S CAPITAL PROGRAM ALREADY HAS FALLEN VICTIM TO ITS LIQUIDITY PROBLEMS MR DOERR SAYS THE COMPANY PULLED BACK ITS ANNUAL CAPITAL SPENDING BUDGET TO 125 MILLION THIS YEAR FROM 200 MILLION ANNUALLY FROM 1984 TO 1993 MEANWHILE LABOR RELATIONS ONCE CONSIDERED AMONG THE BEST IN THE INDUSTRY HAVE DETERIORATED THE STEELWORKERS UNION AND NATIONAL ARE AT ODDS OVER THE IDLING OF THE COMPANY'S IRONORE PELLET UNIT WHERE WORKERS WENT ON STRIKE THE ISSUE AT THE PELLET PLANT IS NOT A LABOR ISSUE SAYS MR DOERR IT'S A BUSINESS ISSUE THE COMPANY CAN BUY THE PELLETS FOR LESS THAN IT CAN MAKE THEM HE SAYS WORKERS SAY THEY LACK DIRECTION AND WERE DISHEARTENED BY THE DEPARTURE OF MR HOWELL WHOM THEY CONSIDERED A SOLID OPERATIONS MAN SAYS THE UNION'S MR LESTER PEOPLE ARE UNCERTAIN WHAT IN THE WORLD IS GOING ON IN THE COMPANY 9402240140 940224 LIPOSOME STOPS WORK ON MAITEC PRINCETON NJ PHARMACEUTICAL COMPANY LIPOSOME CO SAID IT SUSPENDED WORK ON MAITEC A PROPOSED TREATMENT FOR A CERTAIN BACTERIAL INFECTION THAT ATTACKS PEOPLE WITH AIDS THE COMPANY SAID IT WANTS TO FOCUS ITS RESOURCES ON PRODUCTS WITH GREATER REVENUEPRODUCING POTENTIAL BROOKS BOVEROUX CHIEF FINANCIAL OFFICER SAID THAT A RECENT EVALUATION CONVINCED THE COMPANY THAT THE TIME AND COST FOR MAITEC PHASE III TRIALS WOULD HAVE BEEN LONGER AND LARGER THAN EXPECTED THE COMPANY SAID IT WAS CONTINUING WORK ON ITS OTHER PRODUCTS IN CLINICAL DEVELOPMENT NAMELY ABLC FOR SYSTEMIC FUNGAL INFECTIONS TLC C53 FOR THE TREATMENT OF ACUTE RESPIRATORY DISTRESS SYNDROME AND TLC D99 FOR METASTATIC BREAST CANCER 9402240139 940224 MARKETING & MEDIA WHITTLE TO ADD 200 MILLION TO SPENDING TO LAUNCH ITS MEDICAL NEWS NETWORK BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHITTLE COMMUNICATIONS LP SAID IT WILL SPEND AN ADDITIONAL 200 MILLION TO LAUNCH THE FIRST INTERACTIVE MEDICAL NEWS NETWORK FOR THE NATION'S PHYSICIANS BUT THE COMPANY IS STILL IN NEGOTIATIONS WITH MAJOR DRUG COMPANIES TO SPONSOR THE SYSTEM WHITTLE WILL LAUNCH A LARGER AND MORE SOPHISTICATED NETWORK THAN THE COMPANY HAD BEEN USING IN A YEARLONG TEST COMPLETED THIS MONTH THE GREATLY EXPANDED MEDICAL NEWS NETWORK COULD REPRESENT A NEW FINANCIAL STRAIN FOR THE KNOXVILLE TENN COMPANY WHICH HAS HAD TO SCALE BACK OR REDESIGN OTHER MAJOR PROJECTS RECENTLY THE MEDICAL NETWORK HAS BEEN A HIT WITH MANY DOCTORS WHO CAN HAVE THE COMPUTERBASED SYSTEM INSTALLED FREE OF CHARGE ON THEIR OFFICE DESKS THE NETWORK ALLOWS DOCTORS TO VIEW A DAILY MEDICAL NEWS PROGRAM ORDER DRUG SAMPLES REQUEST INFORMATION FROM COMPANIES BY FAX OR MAIL AND VIEW ACCREDITED CONTINUING MEDICAL EDUCATION PROGRAMS AND NEWS SPECIALS BUT ADVERTISERS HAVE BEEN HARD TO LURE AT THIS POINT SPONSORSHIP COMMITMENTS DON'T COVER THE FULL COST OF THE LAUNCH FOR THEIR FINANCIAL COMMITMENTS DRUG COMPANIES CAN RUN ADS DURING NEWSCASTS AND BE EXCLUSIVE SPONSOR ON THE SYSTEM FOR A DAY SPONSORING DRUG COMPANIES ARE LISTED ON THE COMPUTER'S KEYPAD SO PHYSICIANS CAN MAKE DIRECT REQUESTS WITH THE TOUCH OF A BUTTON THE NETWORK IS CONNECTED TO DOCTOR'S OFFICES BY SATELLITE AND TELEPHONE LINES WHITTLE SAID YESTERDAY AT A NEWS CONFERENCE THAT IT WILL BEGIN TO ROLL OUT THE NETWORK NATIONALLY IN OCTOBER AND THAT IT INTENDS TO PUT IT ON THE DESKS OF 50000 PHYSICIANS BY JULY 1996 THE NETWORK WILL BE EXPANDED THIS FALL TO REACH MANAGEDCARE AND CORPORATEBENEFIT EXECUTIVES WITH SPECIALIZED PROGRAMMING WHITTLE HAS PUT THE NETWORK THROUGH THREE YEARS OF RESEARCH AND A 100 MILLION ONEYEAR TEST IN 5000 DOCTOR'S OFFICES THERE HAD BEEN SPECULATION THAT WHITTLE CREATOR OF A NUMBER OF AMBITIOUS MEDIA PROPERTIES IN RECENT YEARS WOULD HAVE TO SCUTTLE MEDICAL NEWS NETWORK FOR LACK OF ADVERTISING SUPPORT FROM MAJOR DRUG COMPANIES TOP DRUG MAKERS SUPPORTED THE TEST BUT SEVERAL OF THEM SUCH AS CIBAGEIGY LTD'S CIBAGEIGY CORP UNIT AND MERCK & CO FACED THEIR OWN BUDGET CONSTRAINTS AND SHIFTING MARKETING PLANS AND BACKED OUT OF WHITTLE'S EXPENSIVE NATIONAL LAUNCH STILL CHRISTOPHER WHITTLE THE COMPANY'S CHAIRMAN AND FOUNDER SAID YESTERDAY THE NATIONAL LAUNCH WILL TAKE PLACE REGARDLESS OF THE LEVEL OF ADVERTISING SUPPORT SO FAR MR WHITTLE SAID THREE MAJOR DRUG ADVERTISERS WHO HE DECLINED TO NAME WILL PROVIDE 147 MILLION TO SPONSOR MEDICAL NEWS NETWORK IN ITS FIRST TWO YEARS HE SAID WHITTLE IS CONTINUING NEGOTIATIONS WITH FIVE OTHER PHARMACEUTICAL COMPANIES TO SUPPORT THE LAUNCH HAVING 147 MILLION FEELS GOOD HE SAID WE ARE HIGHLY CONFIDENT WE WILL HAVE ENOUGH IN SPONSORSHIP REVENUES THIS IS A HUGE DEMAND IN INDUSTRY FOR THIS WHITTLE EXECUTIVES CALLED IT UNLIKELY THE FIVE DRUG COMPANIES WOULDN'T SIGN UP FOR THE NETWORK BUT SPONSORSHIP REVENUE IS STILL SHORT OF THE 200 MILLION NEEDED TO FINANCE THE EXPANSION OF THE NETWORK IN THE NEXT TWO YEARS MR WHITTLE SAID 80 OF THE STARTUP MONEY WILL COME FROM INTERNAL CASH FLOW THE COMPANY EXPECTS TO RAISE THE REMAINING 20 IN LATE 1995 THROUGH A PUBLIC STOCK OFFERING PRIVATE DEBT FINANCING OR BY BRINGING IN A STRATEGIC PARTNER TO BACK THE NETWORK MR WHITTLE ISN'T EXPECTED TO TAP HIS EXISTING PARTNERS WHICH INCLUDE TIME WARNER INC WHICH HOLDS 37 OF WHITTLE COMMUNICATIONS OR PHILIPS ELECTRONICS NV AND ASSOCIATED NEWSPAPER HOLDINGS LTD WHICH HOLD 25 AND 246 RESPECTIVELY 9402240138 940224 COMMENTS SOUGHT ON 2 BANKS' PLANS TO BUY FUND FIRMS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN UNUSUAL MOVE THE COMPTROLLER OF THE CURRENCY ASKED FOR PUBLIC COMMENT ON PROPOSALS BY MELLON BANK CORP AND FIRST UNION CORP TO PURCHASE MUTUAL FUND COMPANIES THE PROPOSALS BY MELLON TO PURCHASE DREYFUS CORP AND BY FIRST UNION TO PURCHASE LIEBER & CO PRESENT NO NEW LEGAL ISSUES BUT MELLON'S PROPOSED 17 BILLION TRANSACTION HAS ATTRACTED CONSIDERABLE POLITICAL ATTENTION TWO POWERFUL HOUSE DEMOCRATS REP JOHN DINGELL OF MICHIGAN AND REP HENRY GONZALEZ OF TEXAS HAVE WARNED THAT THE MELLON TRANSACTION RAISES SIGNIFICANT ISSUES INVOLVING BANK SAFETY AND THE PROTECTION OF BANK CUSTOMERS WHO PURCHASE MUTUAL FUNDS UNLIKE BANK DEPOSITS MUTUAL FUND SHARES PURCHASED THROUGH BANKS AREN'T COVERED BY FEDERAL DEPOSIT INSURANCE MR GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE WORRIES THAT BANKS DON'T SUFFICIENTLY WARN DEPOSITORS ABOUT THE RISKS OF MUTUAL FUND INVESTMENTS MR DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IS CONCERNED THAT BANK REGULATORS AREN'T PROPERLY EQUIPPED TO SUPERVISE MUTUAL FUNDS IN PARTICULAR MR DINGELL IS WORRIED ABOUT MELLON'S PLAN TO MAKE DREYFUS AN OPERATING SUBSIDIARY OF MELLON BANK A MOVE THAT WOULD ENABLE MELLON TO CONSOLIDATE MORE THAN 700 MILLION OF DREYFUS CAPITAL INTO THE BANK'S CAPITAL BASE THIS COULD WEAKEN THE FINANCIAL STRENGTH OF DREYFUS MR DINGELL SAYS HIS COMMITTEE PLANS TO HOLD HEARINGS NEXT WEEK ON SOME OF THE REGULATORY ISSUES POSED BY THE MELLON PURCHASE THE COMPTROLLER OF THE CURRENCY WHO REGULATES NATIONAL BANKS HAS THE AUTHORITY TO APPROVE THE MELLON AND FIRST UNION TRANSACTIONS BUT THE HEARINGS ARE IMPORTANT BECAUSE THEY COULD PROVIDE INSIGHT INTO WHETHER MESSRS DINGELL AND GONZALEZ WILL PUSH FOR LEGISLATION THAT COULD SLOW THE MOVE OF BANKS INTO MUTUAL FUND MANAGEMENT IF THE DEALS GO THROUGH OTHER BANKS ARE EXPECTED TO ACQUIRE MUTUAL FUND ADVISORY FIRMS MESSRS DINGELL AND GONZALEZ HAD URGED THE PUBLIC COMMENT PERIOD WHICH WILL RUN FOR 30 DAYS THE AGENCY'S REQUEST FOR PUBLIC COMMENT POINTS OUT THAT BOTH COMPANIES ARE SEEKING CLEARANCE FOR ACTIVITIES THAT HAVE BEEN PREVIOUSLY APPROVED FOR NATIONAL BANKS THE MAGNITUDE OF THE MELLON TRANSACTION HOWEVER IS SIGNIFICANT THE COMPTROLLER'S NOTICE SAID DREYFUS PROVIDES INVESTMENT ADVICE AND SERVICES TO MORE THAN 130 MUTUAL FUNDS WITH ABOUT 80 BILLION IN ASSETS LIEBER ADVISES AND SERVICES 15 MUTUAL FUNDS IN THE EVERGREEN GROUP WITH ASSETS OF ABOUT 36 BILLION 9402240137 940224 REGULATORY CHOKEHOLD QUANTIFY EPA'S DAMAGE BY JOHN L MICA EVERY BUSINESSMAN KNOWS THAT WHEN THE ENVIROMENTAL PROTECTION AGENCY OR SOME OTHER GOVERNMENT DEPARTMENT ISSUES A REGULATION IT PASSES ALONG COMPLIANCE COSTS SO IT MAKES SENSE FOR THE EPA TO FIND OUT HOW MUCH ITS REGULATIONS WILL COST RIGHT MOST AMERICANS INCLUDING MOST MEMBERS OF CONGRESS THINK SO BUT THE CLINTON ADMINISTRATION AND THE RULERS OF THE HOUSE DISAGREE THEY'VE WORKED OVERTIME RECENTLY TO STYMIE ATTEMPTS BY ME AND OTHER REPUBLICANS TO INTRODUCE AMENDMENTS THAT WOULD FORCE EPA TO QUANTIFY THE RELATIONSHIP BETWEEN ENVIRONMENTAL RISKS AND CLEANUP COSTS A PROCESS KNOWN AS RISK ASSESSMENT THE FORUM FOR THIS DEBATE HAS BEEN LEGISLATION THAT WOULD ELEVATE EPA INTO OUR 15TH CABINET DEPARTMENT I PROPOSED A SIMPLE AMENDMENT THAT WOULD REQUIRE EPA TO LOOK AT THE RISK OF INDIVIDUAL THREATS AND ANALYZE THE COSTS AND BENEFITS OF IMPOSING REGULATION THE SENATE PASSED A SIMILAR AMENDMENT LAST YEAR BUT GETTING THE HOUSE TO CONSIDER SUCH A MEASURE WAS NOT EASY ALTHOUGH MY COLLEAGUE REP GARY CONDIT D CALIF AND I HAD THE VOTES TO INCLUDE THIS SENSIBLE REFORM IN THE GOVERNMENT OPERATIONS COMMITTEE OUR AMENDMENT WAS REJECTED ON TECHNICAL POINTS OF ORDER NEXT THE POWERFUL GATEKEEPERS THE RULES COMMITTEE REJECTED AN EFFORT BY FELLOW FRESHMAN KAREN THURMAN D FLA AND ME TO OFFER THE AMENDMENT ON THE HOUSE FLOOR THEN JUST TWO HOURS BEFORE THE FLOOR VOTE VICE PRESIDENT AL GORE AND EPA ADMINISTRATOR CAROL BROWNER MET WITH DEMOCRATIC FRESHMEN TO ENSURE THEIR SUPPORT FOR THE STATUS QUO ON ENVIRONMENTAL REGULATIONS DESPITE THE HEAVY LOBBYING AGAINST US SOMETHING STRANGE HAPPENED ON FEB 2 THE HOUSE VOTED 227 TO 191 TO SEND THE EPA BILL BACK TO THE RULES COMMITTEE THIS WAS A MILESTONE FOR SEVERAL REASONS FIRST IT SIGNALED THAT MANY RANKANDFILE HOUSE MEMBERS ARE RETHINKING STIFLING AND COSTLY REGULATORY ENACTMENTS IT ALSO SERIOUSLY CHALLENGED THE HIGHHANDED MANNER IN WHICH HILL BARONS OPERATE THE WIDE MARGIN OF OPPOSITION TO THE RESTRICTIVE RULE ALSO REFLECTS THE FRUSTRATION FELT BY STATE AND LOCAL GOVERNMENTS AND BUSINESSES THAT BEAR THE COSTS OF CARRYING OUT FEDERAL REGULATIONS THAT PRODUCE FEW BENEFITS STATE AND LOCAL GOVERNMENTS SPEND UP TO 40 BILLION A YEAR COMPLYING WITH UNFUNDED FEDERAL MANDATES ONE OF THE MORE LUDICROUS BUT NOT UNUSUAL REQUIREMENTS FORCES EVERY WATER SYSTEM IN THE NATION TO MONITOR FOR DBCP THE HERBICIDE USED ON PINEAPPLES AS MOST PEOPLE EXCLUDING EPA BUREAUCRATS ARE AWARE THE ONLY STATE THAT GROWS PINEAPPLES IS HAWAII EPA'S EFFORTS OFTEN SEEM TO MISS REAL PROBLEMS WHILE THE AGENCY REGULATES 83 SPECIFIC CHEMICAL CONTAMINANTS WHICH MAY NOT EVEN BE IN OUR WATER IT DOESN'T REGULATE MANY CONTAMINANTS THAT OCCUR AND POSE A SERIOUS HEALTH THREAT EXAMPLE THE ABSENCE OF A FEDERAL STANDARD FOR CRYPTOSPORIDIUM THE ORGANISM THAT KILLED 40 IN MILWAUKEE REGULATIONS THAT DO NOT CREATE TANGIBLE BENEFITS ARE STRANGLING OUR ECONOMY AND COSTING US JOBS AS A RESULT THE NATIONAL GOVERNORS' ASSOCIATION US CONFERENCE OF MAYORS NATIONAL FEDERATION OF INDEPENDENT BUSINESS AND MANY OTHER GROUPS JOINED WITH US IN LETTING CONGRESS KNOW THAT ENOUGH IS ENOUGH THE PUBLIC BACKS RISK ASSESSMENT TOO WHEN THE HARVARD CENTER FOR RISK ANALYSIS SURVEYED 1000 AMERICANS 83 AGREED THE GOVERNMENT SHOULD USE RISK ANALYSIS TO IDENTIFY THE MOST SERIOUS ENVIRONMENTAL PROBLEMS NINETYTHREE PERCENT AGREED THAT WHEN ADOPTING AN ENVIRONMENTAL REGULATION THE GOVERNMENT SHOULD INFORM THE PUBLIC OF THE BENEFITS AND COSTS THAT ARE EXPECTED TO RESULT FROM THE REGULATION THE RULES COMMITTEE IS NOW SCRAMBLING TO ISSUE A NEW RULE TO BRING THE EPA BILL TO THE FLOOR BEWARE THE POWER BROKERS ARE WORKING BEHIND THE SCENES TO CONCOCT SUBSTITUTE LANGUAGE FOR REAL RISK AND COST ANALYSIS I HOPE THE TAXPAYERS AND MY COLLEAGUES SEE THROUGH THESE BRAZEN ATTEMPTS TO MISDIRECT REFORM REP MICA R FLA IS A FRESHMAN SEE RELATED LETTER LETTERS TO THE EDITOR PINEAPPLE' PESTICIDE POSES REAL RISKS WSJ MAR 1 1994 9402240136 940224 AUTOS IN THE YEAR OF THE RECALL SOME COMPANIES HAD TO FIX MORE CARS THAN THEY MADE BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AUTO MAKERS RECALLED 11 MILLION VEHICLES IN 1993 THE MOST SINCE 1977 TO FIX A RANGE OF DEFECTS INCLUDED IN THE RECALLS WERE SOME OF THE MOST POPULAR VEHICLES IN THE US INCLUDING SOME WITH STERLING REPUTATIONS FOR QUALITY SUCH AS THE HONDA ACCORD THE FORD TAURUS AND THE CHEVY PICKUP BUT THE RECALLS ALSO HIT BRANDS WITH SHAKIER QUALITY RECORDS VOLKSWAGEN HYUNDAI AUDI AND JAGUAR ALL OF WHICH RECALLED MORE THAN TWICE AS MANY VEHICLES AS THEY SOLD LAST YEAR BECAUSE OF PROBLEMS WITH ITS POPULAR PICKUP TRUCKS AND MIDSIZED VANS GENERAL MOTORS CORP ALONE ACCOUNTED FOR MORE THAN FOUR MILLION OF THE VEHICLES RECALLED WE SELL THE MOST A SPOKESMAN SAYS ADDING THAT GM'S TWO LARGEST RECALLS WERE FOR VEHICLES DESIGNED MORE THAN A DECADE AGO THE SAME IS TRUE FOR FORD WHOSE TWO BIG RECALLS OF TAURUSES AND PICKUPS ACCOUNTED FOR MOST OF ITS RECALLS I DON'T REALLY WANT TO RELATE IT TO QUALITY SAYS JERRY BURT FORD'S RECALL MANAGER THERE WERE A COUPLE OF PROBLEMS THAT COVERED HIGHVOLUME PRODUCTS OVER MULTIPLE MODEL YEARS WHEN RECALLS ARE FIGURED AS A PERCENTAGE OF VEHICLES SOLD HONDA MOTOR CO TOPPED THE LIST OF THE SIX LARGEST AUTO MAKERS RECALLING ABOUT 250000 MORE CARS THAN IT SOLD LAST YEAR THE RECALL CAME AFTER HONDA HAD ALREADY RECALLED 900000 VEHICLES IN 1992 FOR THE SAME PROBLEM GAS LEAKS IN OLDER CARS THAT CAN CAUSE FIRES THE INDUSTRY'S RECALL TOTAL OF 11 MILLION VEHICLES LAST YEAR WAS UP SHARPLY FROM 101 MILLION IN 1992 AND 97 MILLION THE YEAR BEFORE ACCORDING TO AUTO SERVICE MONITOR INC AN OHIOBASED CONSULTING FIRM IT WAS THE HIGHEST LEVEL SINCE 1977 WHEN 129 MILLION VEHICLES WERE RECALLED SAYS NOLAND HARRIS FOUNDER OF THE AUTO SERVICE FIRM BUT AUTOMOTIVE ENGINEERS AND ANALYSTS BRISTLE AT THE SUGGESTION THAT THE NEARRECORD NUMBER OF RECALLS MEANS VEHICLES ARE DECLINING IN QUALITY PART OF IT IS SIMPLY DUE TO THE FACT THAT VEHICLES ARE BECOMING MORE COMPLEX SAYS FRANCOIS J CASTAING CHIEF ENGINEER AT CHRYSLER CORP THERE IS NO MYSTERY COMPUTERS AND ELECTRONIC SYSTEMS ARE MORE COMPLEX AND WE HAVE MORE COMPLICATED SAFETY SYSTEMS ALREADY THIS YEAR CHRYSLER HAS HAD A RUN OF RECALLS IT HAS RECALLED ITS NEW NEON TWICE EVEN THOUGH THE CAR JUST WENT ON SALE JAN 1 BUT LAST YEAR THE AUTO MAKER RECALLED ONLY 424690 VEHICLES WE'VE BEEN DOING PRETTY WELL OVER TIME SAYS MR CASTAING HE SAYS THE 1993 TOTAL WAS LESS THAN HALF THE NUMBER OF VEHICLES CHRYSLER RECALLED IN 1992 AS A PERCENTAGE OF SALES CHRYSLER PERFORMED BEST AMONG THE BIG THREE RECALLING ONLY 20 OF THE NUMBER OF VEHICLES IT SOLD WHILE BOTH GM AND FORD RECALLED MORE THAN 80 BUT SOME ANALYSTS CAUTION THAT CHRYSLER COULD BE HURT BY THIS YEAR'S RECALLS THE TIME TO BE ALARMED IS WHEN EARLY IN THE PRODUCT CYCLE THERE IS A SERIES OF RECALLS SAYS GEORGE HOFFER A PROFESSOR OF BUSINESS AT VIRGINIA COMMONWEALTH UNIVERSITY A PRODUCT CAN GET TAGGED AS A LEMON AND THEN ANYTHING BAD ABOUT IT GETS MAGNIFIED BY CONTRAST MR HOFFER SAYS LAST YEAR'S RECALLS OF 19861993 FORD TAURUSES AND 19861987 HONDA ACCORDS HAVEN'T HURT THE VEHICLES' IMAGES MUCH BECAUSE THEY HAVE BEEN ON THE ROAD FOR YEARS AND ALREADY HAVE GOOD REPUTATIONS RECALLS DO HURT MAKERS LIKE AUDI AND HYUNDAI BOTH OF WHICH HAVE SEEN THEIR SALES PLUMMET IN RECENT YEARS PARTIALLY BECAUSE OF POOR QUALITY REPUTATIONS THERE'S A PERCEPTION THAT RECALLS CORRELATE WITH OVERALL VEHICLE QUALITY MR HOFFER SAYS AUDI RECALLED 159000 VEHICLES IN 1993 AND SOLD LESS THAN ONETENTH THAT NUMBER ONLY 12528 HYUNDAI MEANWHILE SOLD 108796 VEHICLES BUT HAD TO RECALL 515000 19861989 EXCELS WITH MANUAL TRANSMISSIONS THE TRANSMISSIONS SOMETIMES JAM CAUSING THE VEHICLES TO STOP SUDDENLY BUT DESPITE THE EMBARRASSING GLITCHES THAT ACCOUNTED FOR MANY RECALLS SOME ANALYSTS SAY THE LARGE NUMBER OF RECALLS LAST YEAR RESULTS FROM A GROWING CONCERN FOR QUALITY NOT A GROWING NUMBER OF PROBLEMS QUALITY HAS IMPROVED FOR EVERYBODY SAYS J FERRON A SENIOR PARTNER AT JD POWER & ASSOCIATES AN AUTOMOTIVE CONSULTING FIRM HE SAYS THAT AUTO MAKERS HAVE LEARNED THAT THEY CAN INCREASE CUSTOMER LOYALTY BY HANDLING A RECALL WELL AND ARE BECOMING MORE AGGRESSIVE ABOUT RECALLING VEHICLES THE INCREASE IN RECALLS SAYS MORE ABOUT AUTO MAKERS' OVERALL ATTITUDE TOWARD CUSTOMERS MR FERRON SAYS THAN IT DOES ABOUT VEHICLE QUALITY 9402240135 940224 INTERNATIONAL BRAZIL PLANS TO SELL NEARLY 4 BILLION IN STATE PROPERTIES BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL SAO PAULO BRAZIL THE GOVERNMENT OF BRAZIL PLANS A HUGE SELLOFF OF STATEOWNED PROPERTIES THIS YEAR AN OFFICIAL SAID BUT ANALYSTS CITING THE NATION'S UNCERTAIN ECONOMIC OUTLOOK AND THE SLOWNESS OF PREVIOUS PRIVATIZATION DRIVES EXPRESSED DOUBTS WHETHER THAT GOAL COULD BE ACHIEVED ISAC ROFFE ZAGURI AN OFFICIAL WITH BRAZIL'S DEVELOPMENT BANK WHICH IS HANDLING THE TRANSACTIONS SAID THE GOVERNMENT PLANS TO SELL 65 OUT OF 137 REMAINING STATEOWNED COMPANIES HE ESTIMATED THEIR VALUE AT NEARLY 4 BILLION OF THAT HE SAID THE GOVERNMENT WOULD USE ABOUT HALF TO PAY DOWN GOVERNMENT DEBT AND REAP THE OTHER 2 BILLION IN CASH IN CONTRAST OVER THE PAST THREE YEARS THE GOVERNMENT SOLD 66 BILLION WORTH OF STATE PROPERTIES BUT USED ALMOST ALL OF THE PROCEEDS TO REDUCE DEBT PERHAPS THE MOST IMPORTANT SALE IN 1994 WILL INVOLVE THE AUCTION OF RIO DE JANEIRO'S LIGHT A POWER DISTRIBUTOR MR ZAGURI SAID SOME FOREIGN COMPANIES HAVE EXPRESSED INTEREST IN ACQUIRING STAKES IN LIGHT THE OFFICIAL ADDED THAT HE EXPECTED FOREIGN INVESTMENT TO ACCOUNT FOR BETWEEN 20 AND 25 OF THIS YEAR'S PURCHASES OF STATEOWNED PROPERTIES UP SHARPLY FROM LAST YEAR UNLIKE MEXICO FOREIGN INVESTORS CAN PURCHASE 100 OF THE VOTING STOCK OF BRAZILIAN COMPANIES MR ZAGURI NOTED THAT THE GOVERNMENT IS FORBIDDEN BY THE CONSTITUTION TO SELL BRAZIL'S GIANT TELECOMMUNICATIONS AND OIL COMPANIES BUT HE SAID WE HAVE A FEELING THAT CONGRESS WILL BREAK THE TELECOMMUNICATIONS MONOPOLY THE BRAZILIAN LEGISLATURE HAS THE POWER TO REVISE THE CONSTITUTION BUT POLITICAL ANALYSTS CAUTION THAT ALTERING IT TO PERMIT THE PRIVATIZATION OF THE BIG ENERGY AND TELECOMMUNICATIONS CONCERNS WOULD BE A HIGHLY CONTROVERSIAL STEP SOME OF THE 1993 PRIVATIZATIONS MADE THEIR NEW OWNERS WEALTHY FOR EXAMPLE SINCE LAST AUGUST THE DOLLAR VALUE OF THE BUYERS' STOCK IN USINAS SIDERURGICAS DE MINAS GERAIS A STEEL COMPANY NEARLY TRIPLED AND THE VALUE OF THEIR STAKES IN CS TUBARAL INCREASED NEARLY SIXFOLD THIS YEAR'S SALES COULD BE DIFFICULT BRAZIL IS ABOUT TO PLUNGE ITS ECONOMY INTO A NEW STABILIZATION PLAN TO REDUCE INFLATION WHICH IS RUNNING AT 40 A MONTH THE OUTCOME IS HIGHLY UNCERTAIN ANALYSTS SAY A PRESIDENTIAL ELECTION LATE THIS YEAR ONLY ADDS TO THE UNCERTAINTY NEVERTHELESS MR ZAGURI DECLARED WE ARE GOING TO PRIVATIZE INDUSTRIAL COMPANIES AND ELECTRICAL COMPANIES AND TELECOMMUNICATIONS IF IT IS ALLOWED BY THE CONSTITUTION IF BRAZIL SHOULD MEET ITS GOALS IT WILL APPROACH THE DOLLAR VOLUME ACHIEVED BY ARGENTINA'S PRIVATIZATION PROGRAM OF 121 BILLION BUT IT WILL STILL LAG FAR BEHIND THE RECORD OF 212 BILLION SET BY MEXICO 9402240134 940224 PSI INC SAYS RULING IN EXXON DISPUTE IS REVERSED ON APPEAL PLAINFIELD IND PSI INC SAID A FEDERAL APPEALS COURT REVERSED A LOWER COURT'S RULING IN A LONGRUNNING DISPUTE OVER HOW MUCH THE UTILITY MUST PAY FOR COAL FROM AN EXXON CORP UNIT THE SEVENTH CIRCUIT US COURT OF APPEALS'S RULING WILL NEARLY HALVE THE FUEL SAVINGS PSI HAD EARLIER BEEN EXPECTING TO REAP TO 120 MILLION OVER FIVE YEARS FROM 225 MILLION THE HOLDING COMPANY SAID UNDER A LONGTERM AGREEMENT DATING BACK TO THE MID1970S AND SCHEDULED TO RUN UNTIL 2002 PSI HAD BEEN ACCEPTING MORE THAN THREE MILLION TONS A YEAR ABOUT A QUARTER OF ITS TOTAL COAL USE FROM EXXON COAL USA'S MINE IN WESTERN ILLINOIS AT A COST OF 38 A TON THAT PRICE IS NOW HIGH BECAUSE OF THE DRAMATIC DECLINE IN PRICES FOR HIGHSULFUR COAL SINCE AIRPOLLUTION STANDARDS WERE TIGHTENED AFTER UNSUCCESSFULLY SEEKING TO RENEGOTIATE A LOWER PRICE WITH EXXON PSI SOLICITED COMPETITIVE OFFERS IT THEN ASKED THE FEDERAL COURT IN INDIANAPOLIS TO DETERMINE WHETHER A LESS COSTLY BID FROM BLACK BEAUTY COAL CO WHICH IS PARTLY OWNED BY CHEVRON CORP MET THE CRITERIA FOR A COMPETITIVE OFFER AS REQUIRED IN THE CONTRACT WITH EXXON THE COURT RULED IN LATE 1992 THAT THE LOWERCOST BID MET THOSE GUIDELINES AND THAT BECAUSE EXXON HADN'T MATCHED THE OFFER THE CONTRACT WITH EXXON COULD BE TERMINATED BLACK BEAUTY BEGAN SHIPPING COAL TO PSI A YEAR AGO AT 2328 A TON BUT EXXON AFTER APPEALING THE COURT'S RULING RESUMED SERVICING THE CONTRACT IN JULY OF LAST YEAR DELIVERING COAL AT 2326 A TON AFTER ASSORTED APPEALS AND OTHER LEGAL MANEUVERS A THREEJUDGE PANEL AT THE APPEALS COURT IN CHICAGO RULED THIS WEEK THAT PSI SHOULD PAY 30 A TON FOR THE EXXON COAL RATHER THAN THE 2326 A TON THAT THE LOWER COURT HAD RULED 9402240133 940224 MARKETING & MEDIA ADVERTISING JOHN DOONER WILL SUCCEED JAMES AT HELM OF MCCANNERICKSON BY KEVIN GOLDMAN ONE OF THE MANY DIFFERENCES BETWEEN ROBERT L JAMES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MCCANNERICKSON AND JOHN J DOONER JR THE AGENCY'S PRESIDENT AND CHIEF OPERATING OFFICER IS QUITE TELLING MR JAMES ENJOYS SAILBOATING WHILE MR DOONER OWNS A POWERBOAT NOW MR JAMES IS PREPARING TO SAIL INTO THE SUNSET AND MR DOONER IS POISED TO REV UP THE ENGINES TO GUIDE INTERPUBLIC GROUP'S MCCANNERICKSON INTO THE 21ST CENTURY YESTERDAY MCCANN MADE OFFICIAL WHAT HAD BEEN WIDELY ANTICIPATED MR JAMES 57 YEARS OLD IS STEPPING DOWN AS CHIEF EXECUTIVE OFFICER ON JULY 1 AND WILL RETIRE AS CHAIRMAN AT THE END OF THE YEAR HE WILL BE SUCCEEDED BY MR DOONER 45 IT PROMISES TO BE A SMOOTH PROCESS WHICH IS UNUSUAL GIVEN THE VOLATILE ATMOSPHERE OF THE ADVERTISING BUSINESS BUT MR DOONER HAS A BIG CHALLENGE THAT WILL BE HIS TOP PRIORITY I'M GOING TO FOCUS ON STRENGTHENING THE CREATIVE WORK HE SAYS THERE IS ROOM TO GROW WE CAN MAKE FURTHER IMPROVEMENTS IN TERMS OF THE PERCEPTION OF OUR CREATIVE WORK EVEN ALAN GOTTESMAN AN ANALYST WITH PAINEWEBBER WHO BELIEVES MCCANN IS FILLED WITH VITALITY AND IS IN GREAT SHAPE SAYS THAT FROM A CREATIVE STANDPOINT YOU WOULDN'T PAY TO SEE THEIR REEL OF COMMERCIALS WHILE MCCANN'S WORLDWIDE BILLINGS ROSE 12 TO 64 BILLION LAST YEAR FROM 57 BILLION IN 1992 THE AGENCY STILL IS DOGGED BY THE LOSS OF THE KEY CREATIVE ASSIGNMENT FOR THE PRESTIGIOUS COCACOLA CLASSIC ACCOUNT I WOULD BE LESS THAN HONEST TO SAY I'M NOT DISAPPOINTED NOT TO BE ABLE TO CLAIM CREATIVE LEADERSHIP FOR COKE MR DOONER SAYS MCCANN STILL HANDLES PROMOTIONS AND MEDIA BUYING FOR COKE BUT THE BRAGGING RIGHTS TO COKE'S UBIQUITOUS ADVERTISING BELONGS TO CREATIVE ARTISTS AGENCY THE BIG HOLLYWOOD TALENT AGENCY WE ARE STRIVING TO HAVE A STRONG RENEWED CREATIVE PARTNERSHIP WITH COCACOLA MR DOONER SAYS HOWEVER ODDS OF THAT HAPPENING ARE SLIM SINCE WORD FROM COKE HEADQUARTERS IN ATLANTA IS THAT CAA AND OTHER AD AGENCIES SUCH AS FALLON MCELLIGOTT WILL CONTINUE TO HANDLE COKE ADVERTISING MR DOONER WHO RECENTLY LOST 60 POUNDS OVER THREEANDAHALF MONTHS SAYS NOW THAT HE HAS REINVENTED HIMSELF HE WANTS TO DO THE SAME FOR THE AGENCY FOR MR DOONER IT MEANS MAINTAINING HIS RUNNING AND EXERCISE SCHEDULE AND FOR THE AGENCY IT MEANS DEVELOPING MORE GLOBAL CAMPAIGNS THAT NONETHELESS REFLECT LOCAL CULTURES ONE MCCANN ACCOUNT I CAN'T BELIEVE IT'S NOT BUTTER A BUTTER SUBSTITUTE IS IN 11 COUNTRIES FOR EXAMPLE MCCANN HAS INITIATED A NEW SOCALLED GLOBAL COLLABORATIVE SYSTEM COMPOSED OF WORLDWIDE ACCOUNT DIRECTORS PAIRED WITH CREATIVE PARTNERS IN ADDITION PETER KIM WAS HIRED FROM WPP GROUP'S J WALTER THOMPSON LAST SEPTEMBER AS VICE CHAIRMAN CHIEF STRATEGY OFFICER WORLDWIDE MR DOONER DOESN'T SEE A CREATIVE MALAISE PERMEATING THE AGENCY HE POINTS TO SEVERAL CAMPAIGNS WITH PRIDE INCLUDING THE TASTER'S CHOICE COMMERCIALS THAT ARE LIKE A RUNNING SOAP OPERA IT'S A 19 MILLION CAMPAIGN WITH THE RECOGNITION OF A 200 MILLION CAMPAIGN HE SAYS OF THE COMMERCIALS THAT FEATURE A COUPLE THAT MUST HOLD A RECORD FOR THE LENGTH OF TIME DATING BEFORE KISSING EVEN SO MR DOONER IS ON THE PROWL FOR MORE CREATIVE TALENT AND IS INTERESTED IN ACQUIRING A HOT AGENCY HE SAYS HE WOULD LIKE TO FINALIZE AN ACQUISITION YESTERDAY I'M NOT KNOWN FOR PATIENCE MR DOONER MET WITH MARTIN PURIS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMMIRATI & PURIS ABOUT MCCANN'S ACQUIRING THE AGENCY WITH BILLINGS OF 400 MILLION BUT NOTHING HAS MATERIALIZED THERE IS NO QUESTION SAYS MR DOONER THAT WE ARE LOOKING FOR QUALITY ACQUISITIONS AND AMMIRATI & PURIS IS A QUALITY OPERATION THERE ARE SOME PEOPLE AND ENTIRE AGENCIES THAT I WOULD LOVE TO SEE BE PART OF THE MCCANN FAMILY MR DOONER DECLINES TO IDENTIFY POSSIBLE ACQUISITIONS MR DOONER IS JUST GEARING UP FOR THE HEADACHES OF RUNNING ONE OF THE LARGEST WORLDWIDE AGENCIES THERE ARE NO IMMEDIATE PLANS TO REPLACE MR DOONER AS PRESIDENT MR JAMES OPERATED AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT FOR A PERIOD OF TIME MR JAMES IS FILLED WITH THOUGHTS OF ENJOYING HIS THREE HOBBIES SAILING SKIING AND HUNTING ASKED WHY HE WOULD CHOOSE TO VOLUNTARILY EXIT WHILE HE STILL IS SO YOUNG MR JAMES SAYS IT IS TIME TO BE A TAD SELFISH ABOUT HOW HE SPENDS HIS DAYS MR JAMES WHO HAS A REPUTATION AS AN EXTRAORDINARILY TOUGH TASKMASTER SAYS THAT BECAUSE HE HAD A GREAT TIME IN ADVERTISING HE DOESN'T WANT TO TALK ABOUT THE DISAPPOINTMENTS IN FACT WHEN HE IS ASKED HIS OPINION OF THE NEW BATCH OF COKE ADS FROM CAA MR JAMES PLACES HIS HANDS OVER HIS MOUTH HE SHRUGS HE DOESN'T UTTER A WORD HE HAS HE SAYS FOND MEMORIES OF WORKING WITH COKE EXECUTIVES COKE HAS GIVEN US GREAT HIGHS SAYS MR JAMES SITTING IN HIS PLUSH OFFICE FILLED WITH PHOTOGRAPHS OF SAILING AS WELL AS HUGE MODELS OF AMONG OTHER THINGS A DUTCH TUGBOAT HE SAYS HE FEELS A GREAT SENSE OF ACCOMPLISHMENT IN 36 COUNTRIES MCCANN IS RANKED IN THE TOP THREE IN 75 COUNTRIES IT IS IN THE TOP 10 SOON MR JAMES WILL BE ABLE TO COMPETE IN AS MANY SAILING RACES AS HE CHOOSES AND CONCENTRATE ON HIS DUTIES AS REAR COMMODORE AT THE NEW YORK YACHT CLUB MAYBE HE'LL EVEN LEAVE SOMETHING FROM HIS OFFICE FOR MR DOONER PERHAPS A FRAMED PAGE FROM THE NEW YORK TIMES DATED DEC 8 1987 SHOWING A YEAREND CHART OF THE STOCK MARKET CRASH EARLIER THAT YEAR MR JAMES SAYS HE FRAMED IT AND KEPT IT BY HIS DESK AS A PERSONAL REMINDER IT CAN ALL BE GONE LIKE THAT BONNIE BLAIR KELLOGG CO SAID IT PLANS TO PUT A PICTURE OF OLYMPIC SPEEDSKATING CHAMPION BONNIE BLAIR ONTO LIMITED EDITION BOXES OF CORN FLAKES SHE WILL APPEAR ON CEREAL BOXES IN HER HOME STATE OF ILLINOIS STARTING NEXT MONTH SHE APPEARED ON KELLOGG BOXES IN 1992 WHEN THE COMPANY WAS AN OFFICIAL OLYMPICS SPONSOR THIS YEAR THE COMPANY PASSED ON THE SPONSORSHIP BUT CONTINUED ITS ENDORSEMENT RELATIONSHIP WITH MS BLAIR BUYOUT TWO EXECUTIVES OF CALET HIRSCH & FERRELL COMPLETED A BUYBACK OF THE NEW YORK AGENCY FROM PARENT ROSS ROY COMMUNICATIONS RIC CALVILLO CHAIRMAN AND CHIEF EXECUTIVE AND JOHN FERRELL PRESIDENT AND CHIEF CREATIVE OFFICER PURCHASED CERTAIN ASSETS AND ACCOUNTS OF THE OLD SHOP AND ARE RENAMING IT FERRELL CALVILLO WITH 85 MILLION IN BILLINGS ACCORDING TO MR CALVILLO PETER HIRSCH CALET HIRSCH'S OTHER PRINCIPAL REMAINS AT ROSS ROY'S NEW YORK OFFICE CALLED NEW YORK PARTNERS/ROSS ROY WHICH HANDLES THE KMART ACCOUNT ACCOUNTS LIONEL TRAINS INC OF CHESTERFIELD MICH TAPPED THE DETROIT OFFICE OF YOUNG & RUBICAM TO CREATE PRINT ADS FOR ITS ELECTRIC TRAINS AN ACCOUNT PREVIOUSLY AT STONE AUGUST BAKER OF TROY LAST WEEK THE COMPANY ASSIGNED A NEW ACCOUNT FOR NONELECTRIC TRAINS FOR PRESCHOOLERS TO GOLDBERG MOSER O'NEILL SAN FRANCISCO DUNCAN TOYS A UNIT OF FLAMBEAU PRODUCTS TAPPED GOLDBERG FOSSA SEID NEW YORK TO CREATE ADS FOR DUNCAN YOYOS INCLUDING REGIONAL TELEVISION SPOTS AND PROMOTIONS 9402240132 940224 GM TROTS OUT OLD IMPALA NAME DETROIT GENERAL MOTORS CORP REVIVED THE OLD IMPALA NAME FOR ITS NEW SPORTY CAPRICELIKE SEDAN WHICH IT PRICED AT 22495 THE IMPALA SS HAS A 260HORSEPOWER LT1 CORVETTE ENGINE LEATHER INTERIOR AND A 4L60E FOURSPEED ELECTRONICALLY CONTROLLED AUTOMATIC TRANSMISSION GM LAST USED THE IMPALA NAME IN 1969 THE NEW IMPALA WILL BE BUILT AT ITS ARLINGTON TEXAS ASSEMBLY PLANT WHICH BUILDS THE CHEVROLET CAPRICE AND OTHER REARWHEELDRIVE VEHICLES GM PLANS TO BUILD ONLY 5000 IMPALAS 9402240131 940224 BIG BOARD IS FINING SMITH BARNEY 50000 FOR LAPSES IN RECORDS NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT FINED SMITH BARNEY SHEARSON INC 50000 FOR FAILING TO PROMPTLY REPORT RECORDS OF VIOLATIONS CONSUMER COMPLAINTS AND TERMINATIONS THAT WERE KEPT ON ITS BROKERS SMITH BARNEY THE BROKERAGE UNIT OF TRAVELERS INC CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO FINDINGS THAT IT VIOLATED EXCHANGE REPORTING REQUIREMENTS AND FAILED TO MAINTAIN PROCEDURES FOR SUPERVISING ITS REPORTING OBLIGATIONS THE BIG BOARD SAID IT ALSO IMPOSED A REQUIREMENT THAT SMITH BARNEY IMPLEMENT POLICIES AND PROCEDURES TO REASONABLY ENSURE PROMPT REPORTING IT SAID THE FIRM ALSO CONSENTED TO CONDUCT AN INTERNAL REVIEW WITHIN SIX MONTHS TO DETERMINE WHETHER IT HAS REPORTED EVERYTHING THAT IT IS REQUIRED ON THE FORMS DESIGNATED U5 AND RE3 A SMITH BARNEY SPOKESMAN SAID THE COMPANY HAD TAKEN STEPS MUCH PRIOR TO THE BIG BOARD ANNOUNCEMENT TO STREAMLINE REPORTING PROCEDURES THE DISCIPLINARY ACTION COMES AT A TIME WHEN SECURITIES BROKERAGE FIRMS HAVE BEEN TRYING TO POLISH THEIR PUBLIC IMAGE BY TOUGHENING REPORTING STANDARDS AT THE END OF LAST YEAR SECURITIES EXECUTIVES AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WERE BEGINNING TO OVERHAUL THE INDUSTRY'S U5 FORMS TO REQUIRE FIRMS TO PROVIDE MORE INFORMATION SUCH AS SPECIFICS ON WHY A BROKER LEFT THE NYSE SAID ITS HEARING PANEL FOUND THAT BETWEEN JULY 1992 AND JUNE 1993 SMITH BARNEY FILED 43 AMENDED U5 AND THREE RE3 FORMS THAT DIDN'T PROMPTLY REPORT 61 REPORTABLE MATTERS CONCERNING 44 FORMER OR PRESENT EMPLOYEES 9402240130 940224 BUSINESS BRIEF CHRYSLER CORP YAZAKI'S US UNIT TO BUY WIRING BUSINESS OF ACUSTAR CHRYSLER CORP SAID IT WILL SELL ITS ACUSTAR ELECTRICAL WIRING BUSINESS TO ITS SUPPLIER AMERICAN YAZAKI CORP THE US UNIT OF JAPAN'S YAZAKI CORP THE AMOUNT WASN'T DISCLOSED THE NO 3 AUTO MAKER BASED IN HIGHLAND PARK MICH HAS BEEN SELLING OFF PARTS OF ITS ACUSTAR DIVISION SINCE 1992 ALL THAT WILL REMAIN OF THE ACUSTAR UNIT AFTER THE SALE OF THE ELECTRICAL WIRING DIVISION ARE OPERATIONS FOR ELECTRONICS GLASS AND THERMAL AND TRIM PRODUCTS THE ELECTRICAL WIRING DIVISION IS ACUSTAR'S LARGEST EMPLOYER EMPLOYING 11000 WORKERS MOSTLY IN MEXICO THE DIVISION HAS EIGHT WIREHARNESS ASSEMBLY PLANTS IN MEXICO AND WAS PROFITABLE LAST YEAR WITH SALES OF 300 MILLION A CHRYSLER SPOKESWOMAN SAID CHRYSLER SAID IT WILL CONTINUE TO PURCHASE PRODUCTS MANUFACTURED BY THE WIRING DIVISION FOR USE IN CHRYSLER VEHICLES 9402240129 940224 IS THIS FAIR THEY NOT ONLY HAVE OLYMPICS THEY HAVE BIGGEST CLIP BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL APPEARING IN NORWAY THIS WEEK TONYA HARDING NANCY KERRIGAN AND THE WORLD'S LARGEST PAPER CLIP THE CLIP SEVEN METERS ALMOST 23 FEET TALL AND WEIGHING 1328 POUNDS WAS MADE BY THE FIRST COMPANY TO AUTOMATE THE MANUFACTURE OF PAPER CLIPS THAT FEAT WAS ACCOMPLISHED AT THE TURN OF THE CENTURY NEAR LILLEHAMMER IN THE TOWN OF GJOVIK THE CLIP IS A TESTAMENT TO THE NORWEGIAN PENCHANT FOR BUILDING BIG THINGS LAST YEAR AN AGRICULTURAL SCHOOL IN AS SAID IT KNITTED THE WORLD'S BIGGEST SWEATER THREE YEARS AGO STUDENTS AT THE NORWEGIAN SCHOOL OF MANAGEMENT BUILT THE WORLD'S BIGGEST BEER CAN IN FRONT OF THE GJOVIK FACTORY OF O MUSTAD & SON SITS THE WORLD'S BIGGEST FISH HOOK WHICH TWO YEARS AGO HAD ATTACHED TO IT THE WORLD'S BIGGEST FISHING FLY IT'S SYMBOLIC OF NORWEGIAN CREATIVITY SAYS ANDERS THOMASSEN SALES AND MARKETING MANAGER OF O MUSTAD & SON NORWAY'S BESTKNOWN PAPER CLIP MANUFACTURER AND MAKER OF THE GIANT CLIP WE'RE PROUD OF IT SAYS KENNETH WATHNE A STUDENT AT THE NORWEGIAN SCHOOL OF MANAGEMENT THIS IS A THING FOR THE COMMON PEOPLE SAYS HIS CLASSMATE CATHRINE KLOUMAN DURING WORLD WAR II NORWEGIANS WORE PAPER CLIPS ON THEIR LAPELS AS A SYMBOL OF GERMAN RESISTANCE MAKING THE WORLD'S LARGEST PAPER CLIP WAS THE IDEA OF MANAGEMENT SCHOOL STUDENTS IN 1989 THAT YEAR MARKED THE 90TH ANNIVERSARY OF THE INVENTION OF THE PAPER CLIP BY JOHAN VAALER A NORWEGIAN FROM LILLEHAMMER MR VAALER IS NO 5 AMONG UNSUNG INVENTORS OF EVERYDAY OBJECTS IN THE BOOK OF LISTS ORIGINALLY THE MANAGEMENT SCHOOL WANTED A PAPER CLIP 10 METERS HIGH BUT THAT WASN'T TECHNICALLY FEASIBLE TOO HEAVY NOR WOULD THE PROPORTIONS HAVE BEEN RIGHT THE STEEL TUBING AVAILABLE WAS SUITABLE ONLY FOR A SEVENMETER CLIP ANYHOW THAT WAS MORE THAN ENOUGH TO ESTABLISH A WORLD RECORD SAYS MR THOMASSEN THE GUINNESS BOOK OF RECORDS LISTED THE CLIP IN ITS 1992 EDITION ALONG WITH THE WORLD'S BIGGEST YOYO AND THE WORLD'S BIGGEST MATCHSTICK BUT NOT EVERYBODY AT THE MANAGEMENT SCHOOL LIKES THE CLIP WHICH IS MOUNTED IN CEMENT OUTSIDE THE MAIN ENTRANCE SAYS MARGRETE JAEGAR A 28YEAROLD PUBLIC RELATIONS CONSULTANT AT THE SCHOOL WHO SPEARHEADED THE BIG CLIP MOVEMENT SOME PEOPLE SAY IT MAKES US SEEM LIKE SECRETARIES AND CLERKS INSTEAD OF BUSINESS STUDENTS 9402240128 940224 BUSINESS BRIEF HOLLYWOOD PARK INC TURF PARADISE TO BE BOUGHT IN STOCK SWAP OF 33 MILLION HOLLYWOOD PARK INC INGLEWOOD CALIF SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE TURF PARADISE INC PHOENIX IN A STOCK SWAP VALUED AT ABOUT 33 MILLION HOLLYWOOD PARK WILL EXCHANGE 14 MILLION NEWLY ISSUED COMMON SHARES FOR ALL 26 MILLION COMMON SHARES OF TURF PARADISE OR 65 SHARES OF HOLLYWOOD PARK FOR EACH 12 SHARES OF TURF PARADISE THE DEAL WILL BOOST THE NUMBER OF HOLLYWOOD PARK SHARES OUTSTANDING TO ABOUT 176 MILLION HOLLYWOOD PARK OWNS THE HOLLYWOOD PARK RACETRACK AND IS EXPANDING INTO OTHER FORMS OF GAMBLING WITH PLANS TO OPEN A CASINOSTYLE CARD CLUB AT THE SITE THIS YEAR TURF PARADISE OWNS A THOROUGHBRED RACETRACK LOCATED ON 275 ACRES IN NORTHWEST PHOENIX IN NASDAQ STOCK MARKET TRADING YESTERDAY HOLLYWOOD PARK FELL 75 CENTS TO 2250 AND TURF PARADISE ROSE 50 CENTS TO 10 9402240126 940224 WHO'S NEWS CS FIRST BOSTON HIRES GOLDMAN SACHS'S ROLET TO HEAD EUROPEAN EQUITIES UNIT BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CS FIRST BOSTON CORP SAID IT HIRED XAVIER A ROLET EXECUTIVE DIRECTOR IN CHARGE OF EUROPEAN EQUITY TRADING AT GOLDMAN SACHS INTERNATIONAL TO BE MANAGING DIRECTOR AND COHEAD OF ITS WORLDWIDE EUROPEAN EQUITIES OPERATIONS IT'S A GREAT COUP FOR CSFB A BIG LOSS FOR GOLDMAN HE'S A STAR A VERY VERY COMPETENT PROFESSIONAL SAID A SENIOR EXECUTIVE AT ANOTHER BIG US INVESTMENT BANK IF YOU TOLD ME HE WAS RETIRING I'D BE FAR HAPPIER XAVIER IS A PERSON OF EXTRAORDINARY ABILITY AND INTEGRITY SAID STEVEN KLEIN MANAGER OF INTERNATIONAL EQUITY TRADING AT TWENTIETH CENTURY FUND IN KANSAS CITY MO HE HAS BROAD EXPERIENCE COMBINED WITH A VERY IMPRESSIVE INTELLECT BY YEAR END MR ROLET WILL ASSUME TOTAL RESPONSIBILITY FOR CS FIRST BOSTON'S EUROPEAN EQUITY TRADING DISTRIBUTION AND RESEARCH EFFORT UNTIL THEN HE WILL WORK WITH ALFRED G JACKSON A 14YEAR CS FIRST BOSTON VETERAN WHO RECENTLY MOVED TO LONDON TO HELP RESTRUCTURE THE FIRM'S EQUITY UNITS FOLLOWING A MAJOR REORGANIZATION OF CS FIRST BOSTON MR JACKSON IS SCHEDULED TO RETURN TO THE US WHERE HE WILL CONTINUE IN HIS CURRENT CAPACITY AS HEAD OF THE FIRM'S GLOBAL STOCK DISTRIBUTION COMPETITORS AND CLIENTS SAID THAT GOLDMAN SACHS & CO THE PARENT DIDN'T WANT TO LOSE 34YEAROLD MR ROLET AND TRIED HARD TO KEEP HIM HE'S MADE A BIG CONTRIBUTION CONCEDED ROBERT STEEL A PARTNER AND COHEAD OF GOLDMAN SACHS' EQUITIES DIVISION IN LONDON I HOPE THE NEW ROLE WORKS OUT FOR HIM AS MUCH AS I WOULD ANY COMPETITOR NONETHELESS MR STEEL SAID WE HAVE A VERY STRONG AND TALENTED BENCH XAVIER'S RESPONSIBILITIES WILL BE ASSUMED BY THE EXISTING EUROPEAN EQUITY TRADING TEAM CONSIDERED A POWERHOUSE IN BONDS UNDERWRITING AND DERIVATIVES CS FIRST BOSTON IS REGARDED AS A SECONDTIER FIRM IN INTERNATIONAL EQUITY TRADING AND DISTRIBUTION BUT ONE STRIVING HARD TO GET INTO THE FRONT RANKS SURVEYS BY CONSULTANTS GREENWICH ASSOCIATES LIST GOLDMAN SACHS AND MERRILL LYNCH & CO AS THE TWO PREMIER INTERNATIONAL EQUITY FIRMS ACCORDING TO TRADERS WHO HAVE SEEN THE ASSESSMENTS IN DECEMBER CS FIRST BOSTON REORGANIZED ITS EUROPEAN EQUITY BUSINESS AS PART OF A COMPANYWIDE RESTRUCTURING THAT BEGAN TWO MONTHS EARLIER UNTIL BEING BROUGHT UNDER ONE ROOF IN DECEMBER CS FIRST BOSTON'S EQUITY UNITS THROUGHOUT EUROPE DIDN'T INTERACT WELL AND OFTEN COMPETED WITH ONE ANOTHER SINCE THEN CLIENTS SAY THE FIRM IS BETTER ORGANIZED AND HAS HIRED SOME TOP EQUITY TALENT HIRING SOMEONE LIKE XAVIER IS AN INDICATION THEY ARE WILLING TO GO AFTER THE VERY BEST PEOPLE THEY CAN TO COMPETE WITH THE GOLDMANS SAID ONE HEAD EQUITY TRADER JAMES G GANTSOUDES HEAD OF GLOBAL EQUITIES AT CS FIRST BOSTON IN NEW YORK CONCEDED WE HAVE A LOT OF WORK TO DO BUT HE ADDED CLEARLY THE OPPORTUNITY TO HIRE XAVIER ROLET IS INTENDED TO MAKE OUR TRADING EVEN BETTER EXPLAINING MR ROLET'S DECISION TO LEAVE GOLDMAN AND JOIN CS FIRST BOSTON MR GANTSOUDES SAID A LOT OF THINGS ARE GOING TO HAPPEN IN EUROPE HE RECOGNIZED THE FRANCHISE WE WERE BUILDING AND SIGNED UP FOR THAT HOWEVER FRIENDS OF MR ROLET SAID THAT THE FRENCHMAN BELIEVED THAT GOLDMAN SHOULD HAVE MADE HIM A PARTNER LAST YEAR AND HE WAS DISAPPOINTED AT HAVING BEEN PASSED OVER MR ROLET WAS UNAVAILABLE FOR COMMENT HE IS THE LATEST IN A SERIES OF HIGHPROFILE DEPARTURES FROM GOLDMAN SACHS A FIRM THAT HAS LONG PRIDED ITSELF ON HAVING FAR LESS ANNUAL TURNOVER IN SENIOR EXECUTIVES THAN MOST OTHER WALL STREET FIRMS FOR EXAMPLE TWO TOP ECONOMISTS DAVID MORRISON A PARTNER AND JEREMY HALE RESIGNED FROM GOLDMAN'S LONDON UNIT LATE LAST YEAR AND JOINED TIGER MANAGEMENT A US HEDGE FUND TWO DAYS AGO MICHAEL SHERWOOD GOLDMAN'S FORMER HEAD OF BOND SYNDICATION IN LONDON WAS HIRED BACK BY THE FIRM AFTER RESIGNING FOUR WEEKS EARLIER TO JOIN A SWISS BANK GOLDMAN HAS BEEN HIT BY OTHER PROBLEMS AS WELL THE FIRM RECENTLY LOST AS MUCH AS 125 MILLION BY BETTING WRONGLY ON THE DIRECTION OF CURRENCIES AND JAPANESE AND EUROPEAN BONDS 9402240125 940224 WHO'S NEWS UNION CORP UNION CORP FAIRFIELD NJ MELVIN L COOPER WAS NAMED PRESIDENT OF UNION CORP A NEW POSITION AT THIS PROVIDER OF ACCOUNTSRECEIVABLE MANAGEMENT AND DEBTCOLLECTION SERVICES MR COOPER 66 YEARS OLD REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO WILLIAM B HEWITT 55 WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POST HE CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNION'S CAPITAL CREDIT CORP UNIT SEPARATELY THE CAPITAL CREDIT SUBSIDIARY NAMED JAMES R PAXTON 46 PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE MARCH 1 BOTH POSITIONS ALSO ARE NEW MR PAXTON MOST RECENTLY WAS EXECUTIVE VICE PRESIDENT AT CAPITAL CREDIT 9402240123 940224 WHO'S NEWS INTERFACE INC INTERFACE INC LAGRANGE GA CHARLES R EITEL AND ROYCE RENFROE WERE ELECTED TO THE BOARD OF THIS CARPET MANUFACTURER MR EITEL 44 YEARS OLD AND CHIEF EXECUTIVE OFFICER OF INTERFACE AND MR RENFROE 47 CHIEF EXECUTIVE OF BENTLEY MILLS INC WHICH WAS ACQUIRED BY INTERFACE LAST YEAR WILL SUCCEED DON LEE WHO RETIRED AND GRANT TODD MR TODD RESIGNED FROM THE BOARD THIS MONTH HE HAS BEEN APPOINTED TO THE NEW POSITION OF VICE PRESIDENT OF CORPORATE MARKETING 9402240122 940224 WHO'S NEWS KODAK'S STERLING APPOINTS REJEANGE TO PRESIDENT'S POST NEW YORK STERLING WINTHROP INC NAMED JACQUES F REJEANGE PRESIDENT OF THE COMPANY'S PHARMACEUTICALS GROUP TO THE ADDITIONAL TITLES OF PRESIDENT AND CHIEF OPERATING OFFICER MR REJEANGE 53 YEARS OLD SUCCEEDS LOUIS P MATTIS 52 WHO WILL REMAIN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE EASTMAN KODAK CO HEALTH UNIT WHICH HAS ABOUT 2 BILLION IN ANNUAL REVENUE THE COMPANY SAID THE MOVE WHICH PLACES MR REJEANGE IN CHARGE OF DAYTODAY OPERATIONS WILL ALLOW MR MATTIS TO FOCUS ON STRATEGY ALLIANCES AND JOINT VENTURE OPPORTUNITIES THIS WILL HELP US GIVE MORE ATTENTION TO THE HEALTHCARE AGENDA AND THE RAPID REORGANIZATION OF THE HEATH CARE MARKET MR REJEANGE SAID MR REJEANGE SAID THAT HE WILL CONCENTRATE ON BUILDING STERLING WINTHROP'S OVERSEAS BUSINESS IN THE US STERLING WINTHROP HAS THE SALES AND MARKETING RIGHTS TO BAYER ASPIRIN THE CHALLENGE IS TO TRY TO ACCELERATE AND FOSTER GLOBAL DEVELOPMENT AND REDUCE DEPENDENCY ON THE US MARKET MR REJEANGE SAID BEFORE COMING TO STERLING WINTHROP IN 1992 AS AN EXECUTIVE VICE PRESIDENT MR REJEANGE HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SANDOZ PHARMACEUTICAL CORP A DIVISION OF SANDOZ LTD BASEL SWITZERLAND AT SANDOZ MR REJEANGE HELD ASSIGNMENTS IN SWITZERLAND HONG KONG THE UK FRANCE BELGIUM AND THE US 9402240121 940224 INTERNATIONAL BRAZIL INCREASES CELLULAR LINES RIO DE JANEIRO THE NUMBER OF CELLULARTELEPHONE LINES IN BRAZIL INCREASED TO MORE THAN 250000 BY THE END OF LAST YEAR TELECOMUNICACOES BRASILEIRAS SAID THE STATEOWNED PHONE HOLDING COMPANY SAID ABOUT 77 OF THE CELLULARPHONE LINES WERE CREATED LAST YEAR AND THAT THE TOTAL WILL INCREASE TO 600000 THIS YEAR BRAZIL HAS 127 MILLION FIXED TELEPHONE LINES OR ONE FOR EVERY 84 PEOPLE AS OF JANUARY 17 OF BRAZIL'S 27 STATES HAD CELLULAR LINES 9402240119 940224 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK SHELDON ROSENBERG 45 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THIS PROPERTYCASUALTY INSURER A NEW POST HE WAS VICE PRESIDENT AND CHIEF ACTUARY OF CONTINENTAL'S ACTUARIAL DIVISION 9402240118 940224 HEARD ON THE STREET APPARELRETAIL STOCKS ARE DRESSED FOR SUCCESS SAY ANALYSTS EXPECTING STRONGER SALES SOON BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL LET'S FACE IT AFTER MORE THAN A YEAR OF IGNORING THEIR CLOSETS AMERICANS ARE LOOKING PRETTY SHABBY AS THE ECONOMY HAS CREPT OUT OF RECESSION CONSUMERS HAVE OPENED THEIR WALLETS FOR CARS TELEVISIONS AND OTHER DURABLE GOODS BUT NOW FOR THE FIRST TIME IN A LONG WHILE CONSUMERS ARE ABOUT TO TURN THEIR ATTENTION TO APPAREL PURCHASES SOME INVESTORS BELIEVE AND THAT COULD MEAN BIG GAINS ARE JUST AROUND THE CORNER FOR CLOTHING RETAILERS' STOCKS WE THINK THE APPARELRETAIL STOCKS COULD SURGE ON THE FIRST SIGNS OF A HEALTHY SALES RECOVERY SAID STEVE KERNKRAUT AN ANALYST WITH BEAR STEARNS IN COMMENTS TO CLIENTS THIS WEEK THAT SIGNAL COULD COME IN MARCH WHEN BARRING DISASTROUS WEATHER RETAILERS ARE EXPECTED TO BEGIN SHOWING STRONG SALES COMPARED WITH LAST YEAR MR KERNKRAUT THINKS APPAREL SALES FOR MARCH WILL BE UP 7 TO 8 COMPARED WITH DECLINES OF 2 TO 3 LAST MARCH OTHER ANALYSTS HAVE AIRED SIMILAR VIEWS IN RECENT DAYS INCLUDING DAN BARRY AN ANALYST AT MERRILL LYNCH WHO THINKS APPAREL RETAILERS WILL BEGIN REPORTING SURPRISINGLY GOOD SALES THIS YEAR RETAIL STOCKS HAVE ALREADY BEGUN THEIR MOVE YESTERDAY FOR EXAMPLE NORDSTROM ROSE 2 7/8 TO 39 3/4 THE GAIN REFLECTED A STRONG EARNINGS REPORT THIS WEEK AND RECOMMENDATIONS YESTERDAY FROM MERRILL'S MR BARRY AS WELL AS GOLDMAN SACHS WHICH BOOSTED THE STOCK TO MODERATE OUTPERFORM FROM MARKET PERFORMER JC PENNEY ROSE TO 55 3/8 UP 1 5/8 FEDERATED DEPARTMENT STORES ADDED 1/4 TO 23 1/2 I KNOW SALES COMPARISONS IN MARCH WILL BE GOOD AND I KNOW HOW THESE ANALYSTS THINK SAYS KEN PEARLMAN A FORMER ANALYST HIMSELF WHO NOW RUNS HIS OWN NEW YORK INVESTMENT FIRM SHAREVEST CAPITAL MANAGEMENT IN RECENT WEEKS HE HAS ADDED TO POSITIONS IN GAP ANNTAYLOR AND CHARMING SHOPPES OPTIMISM ABOUT APPAREL RETAILERS SIGNALS A BIG CHANGE OF HEART ON WALL STREET WHERE THE GROUP HAS BEEN UNPOPULAR FOR MORE THAN A YEAR ONCE ENAMORED OF SHOPPING THE THEORY WENT CONSUMERS OF THE 1990S HAD BECOME SO INTERESTED IN BARGAINS THAT THEY RESIGNED THEMSELVES TO A WELLWORN WARDROBE SHUNNING ALL THOSE TIMECONSUMING EXPEDITIONS TO THE MALL THE PROBLEM WITH THAT THEORY IS THAT CLOTHES EVENTUALLY WEAR OUT AND ACROSS AMERICA SEAMS ARE BEGINNING TO SPLIT AND BUTTONS ARE FALLING OFF SAYS PETER SCHAEFFER A PARTNER WITH JOHNSON REDBOOK A RETAIL RESEARCH FIRM PEOPLE WILL LIVE WITH THAT FOR A CERTAIN AMOUNT OF TIME BUT EVENTUALLY THEY ACT MR SCHAEFFER SAYS HE THINKS MARCH WILL BE STRONG BUT THE REAL PICKUP IN SALES WILL COME IN THE THIRD AND FOURTH QUARTERS HIS REASONING CERTAIN PENNYPINCHING SHOPPERS FEEL THEY GET BETTER VALUE IN WINTER CLOTHES WHICH ARE MORE SUBSTANTIAL SHOPPING MAY NO LONGER BE THE FAVORITE NATIONAL PASTIME IT WAS IN THE 1980S BUT DISMAL APPAREL SALES LAST YEAR WERE PROBABLY JUST AN ABERRATION THE RESULT OF POOR FASHION TRENDS AND AN ATYPICALLY SLOW ECONOMIC RECOVERY SAYS BEAR STEARNS'S MR KERNKRAUT ADDS KENT SIMONS COMANAGER OF NEUBERGER & BERMAN'S GUARDIAN FUND THE GRUNGE LOOK DIDN'T SELL WELL IN BLOOMINGDALES MR SIMONS SAYS HE IS LOOKING AT BUYING SOME RETAIL STOCKS WHEN APPAREL SALES BEGIN TO RECOVER SAYS MR KERNKRAUT STOCKS SUCH AS LIMITED AND CHARMING SHOPPES FOR EXAMPLE COULD SURGE 50 FROM THEIR CURRENT LEVELS OTHERS NOTABLY GAP FEDERATED AND JC PENNEY COULD JUMP 25 HE SAYS IT'S HARD TO ARGUE THAT THE STOCKS ARE PRICEY LIMITED IS CURRENTLY SELLING AT ONLY ABOUT 14 TIMES ESTIMATES FOR 1994 EARNINGS WE THINK THAT'S VERY INEXPENSIVE SAYS MR KERNKRAUT FEDERATED MEANWHILE IS SELLING AT 13 TIMES THIS YEAR'S EARNINGS ESTIMATES IT SHOULD SELL FOR 16 TIMES 1994 ESTIMATES HE SAYS HE ADDS THAT GAP IS CURRENTLY SELLING AT A MULTIPLE OF 20 TIMES HIS 1994 ESTIMATES THAT'S BELOW ITS EARNINGSGROWTH RATE OF 25 NORDSTROM IS A GOOD WAY TO PLAY ANY UPTURN MERRILL'S MR BARRY BELIEVES BECAUSE IT'S DEVOTED TO APPAREL RATHER THAN GENERAL MERCHANDISE THE STOCK ALSO OFFERS A CHANCE TO BET ON A CALIFORNIA TURNAROUND HE SAYS ANALYSTS THINK THE TREND TOWARD IMPROVED APPAREL SALES WILL BUILD STEAM AS THE YEAR WEARS ON BUT SAYS MR PEARLMAN FLEETFOOTED INVESTORS WILL DO BEST WITHIN THE FIRST THREE WEEKS OF REALIZING THAT SALES ARE IMPROVING YOU GET THE MOST UPSIDE HE SAYS 9402240117 940224 BUSINESS BRIEF MANPOWER INC FOURTHQUARTER NET INCOME OF 42 MILLION IS REPORTED MANPOWER INC MILWAUKEE SHOWING STRONG PROFIT GAINS IN ITS US TEMPORARYHELP BUSINESS REPORTED FOURTHQUARTER NET INCOME OF 42 MILLION OR SIX CENTS A SHARE AGAINST A YEAREARLIER NET LOSS OF 9 MILLION OR 12 CENTS A SHARE BOTH PERIODS INCLUDED SIZABLE NONRECURRING CHARGES TIED TO AMORTIZING GOODWILL COSTS SUCH CHARGES WERE 86 MILLION IN THE LATEST QUARTER AND 198 MILLION IN THE YEARAGO QUARTER MANPOWER SAID THAT ITS US OPERATIONS SHOWED A 71 GAIN IN OPERATING PROFIT IN THE QUARTER FROM THE PREVIOUS YEAR REVENUE ROSE 48 TO 8263 MILLION FOR ALL OF 1993 MANPOWER HAD A NET LOSS OF 489 MILLION OR 66 CENTS A SHARE INCLUDING NONRECURRING CHARGES OF 715 MILLION AND A 20 MILLION RESTRUCTURING CHARGE ON REVENUE OF 318 BILLION THAT NET LOSS WAS WIDER THAN THE YEAREARLIER 467 MILLION OR 64 CENTS A SHARE ON REVENUE OF 319 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK CLOSED AT 1825 UP 625 CENTS 9402240116 940224 LETTERS TO THE EDITOR HSC DON'T GET SICK WITHOUT IT LOOK IN THE AVERAGE AMERICAN'S WALLET AND YOU'RE LIKELY TO FIND AN AUTOMATIC TELLER MACHINE ATM CARD THAT ALLOWS HIM OR HER TO WITHDRAW OR DEPOSIT MONEY FROM A BANK ACCOUNT AT THOUSANDS OF LOCATIONS AROUND THE COUNTRY AND EVEN AROUND THE WORLD ATM CARDS HAVE EASED THE DAILY LIVES OF WORKING AMERICANS WHO OFTEN DON'T HAVE TIME TO STAND IN BANK LINES TO MAKE TRANSACTIONS BUT BEHIND THE ATM MACHINE IS A WEB OF ACTIVITY AND BUREAUCRACY THOUSANDS OF BANK EMPLOYEES ARE RESPONSIBLE FOR KEEPING THE ATMS IN WORKING ORDER MAKING SURE THERE IS NO FRAUD OR ABUSE DEALING WITH CUSTOMER COMPLAINTS AND FULFILLING FEDERAL AND STATE LAWS AND REGULATIONS AND THOUSANDS OF FEDERAL AND STATE GOVERNMENT OFFICIALS OVERSEE THE BANKING INDUSTRY AND PROTECT THE RIGHTS OF CONSUMERS IF CONSUMERS REALIZED HOW MUCH WENT INTO EACH ATM TRANSACTION WOULD THEY CUT UP THEIR CARD AND GO BACK TO RUSHING TO THE BANK TO GET IN LINE BEFORE 3 PM I DON'T THINK SO BECAUSE TO THE AVERAGE CONSUMER ATMS HAVE MADE LIFE MUCH EASIER AND THE VARIOUS LEVELS OF PERSONNEL AND BUREAUCRACY DON'T MAKE A WHIT OF DIFFERENCE WHEN IT COMES TO REFORMING OUR HEALTH CARE SYSTEM PRESIDENT CLINTON TAKES A SIMILAR CONSUMERORIENTED APPROACH HE BELIEVES AN AMERICAN'S INTERACTION WITH THE HEALTH CARE SYSTEM SHOULD BE PAINLESS THAT'S WHY HE HAS PROPOSED REFORMS THAT WILL PLACE REAL DECISIONMAKING AUTHORITY IN THE HANDS OF CONSUMERS IN A STREAMLINED SYSTEM THAT'S SENSITIVE TO THE NEEDS OF PATIENTS AND THEIR FAMILIES UNDER THE PRESIDENT'S HEALTH SECURITY ACT EACH AMERICAN WILL RECEIVE A HEALTH SECURITY CARD THAT FUNCTIONS MUCH LIKE AN ATM CARD SO WHEN A WOMAN GOES TO THE DOCTOR SHE SIMPLY PRESENTS HER CARD TO THE DOCTOR WHO USES IT TO PROCESS THE CLAIM MAKE SURE THAT THE RIGHT HEALTH PLAN IS BILLED AND THEN SENDS THE PATIENT HOME WHAT THEN OF THE MASSIVE BUREAUCRACY CHARTED OUT BY SENATORS BOB DOLE AND ARLEN SPECTER ACTUALLY WE IN THE ADMINISTRATION ALSO BELIEVE THERE IS TOO MUCH BUREAUCRACY IN HEALTH CARE IN FACT THE EXCESS AMOUNT OF RED TAPE IN THE CURRENT SYSTEM IS ONE OF THE THINGS THAT BROUGHT US TO THIS DEBATE AS THE PRESIDENT SAID LAST SEPTEMBER THE MEDICAL CARE INDUSTRY IS LITERALLY DROWNING IN PAPERWORK AMERICANS SPEND TWICE AS MUCH ON HEALTH CARE OVERHEAD THAN ANY OTHER COUNTRY IN THE WORLD THAT'S WHY THE HEALTH SECURITY ACT TAKES SPECIFIC STEPS STEPS THAT ARE NOT TAKEN IN MOST OF THE REPUBLICAN ALTERNATIVES TO ALLEVIATE THE BURDEN OF PAPERWORK AND BUREAUCRACY FOR CONSUMERS DOCTORS NURSES AND HOSPITALS SPECIFICALLY IT WILL REPLACE THE NEARLY 1500 SEPARATE CLAIMS FORMS NOW USED BY INSURANCE COMPANIES WITH A SINGLE ONEPAGE CLAIMS FORM THAT WILL BE EASY TO COMPLETE AND SIMPLE TO PROCESS ELIMINATE INSURANCE COMPANY RULES AND REGULATIONS THAT RESTRICT CONSUMERS' ACCESS TO COVERAGE INCLUDING THE 81 MILLION AMERICANS LIVING WITH PREEXISTING MEDICAL CONDITIONS THAT HAMPER THEIR ABILITY TO GET COVERAGE CREATE A STANDARD COMPREHENSIVE BENEFIT PACKAGE THAT WILL ELIMINATE THE HASSLE OF FIGURING OUT IF A NEEDED SERVICE IS COVERED OR NOT EXPAND THE USE OF ELECTRONIC BILLING SO THAT PROVIDERS CAN BE PAID QUICKLY PATIENTS CAN AVOID THE HEADACHE OF FILLING OUT FORMS AND FRAUD AND ABUSE CAUSED BY REPETITIVE BILLING CAN BE CURTAILED ELIMINATE A STRING OF LABORINTENSIVE INVASIVE OVERSIGHT ACTIVITIES THAT SERVE ONLY TO AGGRAVATE PROVIDERS AND PATIENTS ALIKE AND DO NOTHING TO IMPROVE THE QUALITY OF CARE RENDERED THESE CHANGES WILL PRODUCE A HEALTH CARE SYSTEM THAT IS EASY TO UNDERSTAND EASY TO ACCESS AND EASY TO USE AND THEY WILL ELIMINATE THE BURDENSOME INSURANCE INDUSTRY RED TAPE AND BUREAUCRACY AS WITH THE ATM CARD THE HEALTH SECURITY CARD WILL IMPROVE THE QUALITY OF OUR LIVES AND THE QUALITY OF OUR HEALTH CARE SYSTEM 9402240115 940224 WHO'S NEWS BRITISH TELECOM ACTS TO AID UNITS ABROAD BY SHIFTING MANAGERS LONDON BRITISH TELECOMMUNICATIONS PLC IS RESHUFFLING ITS SENIOR MANAGEMENT TO SPEED THE GROWTH OF ITS BUSINESSES ABROAD THE DOMINANT UK PHONE COMPANY SAID IT'S CREATING A NEW DIVISION TO OVERSEE ITS GROWING INTERNATIONAL INVESTMENTS INCLUDING ITS PLANNED 20 STAKE IN MCI COMMUNICATIONS INC THE BIG US LONGDISTANCE CARRIER LAST JUNE BT ANNOUNCED A SWEEPING TRANSATLANTIC ALLIANCE WITH MCI AGREEING TO PAY 43 BILLION FOR THE MCI STAKE AND TO FORM A 75BT 25MCI JOINT VENTURE OFFERING INTERNATIONAL BUSINESSCOMMUNICATIONS SERVICES THE ALLIANCE HAS YET TO BE FINALIZED LARGELY BECAUSE OF SOME ANTICIPATED DELAYS GETTING CLEARANCE FROM US REGULATORY AUTHORITIES A BT SPOKESMAN SAID NAMED TO RUN BT'S NEW GLOBAL COMMUNICATIONS DIVISION WAS ALFRED MOCKETT 45 YEARS OLD CURRENTLY MANAGING DIRECTOR OF BT'S BUSINESSCOMMUNICATIONS DIVISION THE NEW DIVISION GROUPS TOGETHER SEVERAL PREVIOUSLY SEPARATE BT UNITS FOR AMONG OTHER THINGS OPERATIONS IN EUROPE AND ASIA AND FOR ITS SYNTEGRA COMPUTERSERVICES BUSINESS MR MOCKETT WILL REPORT TO BT MANAGING DIRECTOR MICHAEL HEPHER AND WILL ALSO BE ONE OF BT'S REPRESENTATIVES ON MCI'S BOARD WHEN THE SHARE PURCHASE IS COMPLETED LATER THIS YEAR AT THE SAME TIME BT SAID IT'S CREATING A NEW NATIONAL BUSINESS COMMUNICATIONS DIVISION TO HANDLE ITS UK BUSINESS SERVICES THAT UNIT IS TO BE HEADED BY BRUCE BOND 47 CURRENTLY IN CHARGE OF BT'S COMMUNICATIONSPRODUCTS DIVISION THE CHANGES WHICH LONDON FINANCIAL ANALYSTS CALLED AN EXPECTED ATTEMPT TO FOCUS MORE MANAGEMENT ATTENTION ON FOREIGN GROWTH LEAVE BT WITH THREE MAIN OPERATING DIVISIONS THE NEW GLOBAL AND NATIONAL BUSINESS UNITS PLUS BT'S EXISTING UK RESIDENTIALTELEPHONE SERVICES DIVISION SINCE BT'S PRIVATIZATION IN 1984 IT WAS FORMERLY THE UK'S STATEOWNED TELEPHONE MONOPOLY THE COMPANY HAS TRIED AND FAILED AT SEVERAL DIFFERENT METHODS OF BECOMING A GLOBAL FORCE IN TELECOMMUNICATIONS 9402240114 940224 TRAVEL AMERICAN EXPRESS THE SLEEPING GIANT WAKES AND SPOOKS THE TRAVEL INDUSTRY BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL THE TRAVEL INDUSTRY USED TO LOOK ON AMERICAN EXPRESS AS A SLEEPING GIANT NOW IT REGARDS THE COMPANY AS A 10TON GORILLA PEOPLE REALIZE AMERICAN EXPRESS IS A VERY SERIOUS COMPETITOR BUT IT'S TIME THEY REALIZE IT ON A VISCERAL LEVEL SAYS IVAN M SCHAEFFER PRESIDENT OF WOODSIDE TRAVEL TRUST IN BETHESDA MD TO UNDERSCORE HIS POINT MR SCHAEFFER SLICED UP HIS OWN AMERICAN EXPRESS CARD LAST YEAR BEFORE A ROOM FULL OF WOODSIDE EXECUTIVES TRAVELINDUSTRY COMPLAINTS ABOUT AMERICAN EXPRESS CO STEM IN PART FROM ITS HUGE TRAVELAGENT BUSINESS WHILE MUCH OF THE COMPANY'S 142 BILLION IN ANNUAL REVENUE STILL COMES FROM CHARGE CARDS AND TRAVELER'S CHECKS AMERICAN EXPRESS HAS THROUGH ACQUISITIONS BECOME THE NATION'S LARGEST TRAVEL AGENCY WITH MORE THAN TWICE THE VOLUME OF ITS NEAREST COMPETITOR THE COMPANY SAYS IT SOLD 8 BILLION OF AIRLINE HOTEL CARRENTAL AND CRUISE BOOKINGS LAST YEAR 10 TO 12 OF WHICH IT NETTED IN COMMISSIONS IT HAS ALMOST DOUBLED ITS SALES VOLUME IN THE PAST SIX YEARS AND VOWS TO CONTINUE THE HEATED PACE MANY IN THE INDUSTRY SAY THEY ARE LESS WORRIED ABOUT AMERICAN EXPRESS'S SHEER SIZE THAN THE SEEMING OVERLAP BETWEEN ITS TRAVEL AND CHARGECARD BUSINESSES TENSIONS HAVE ARISEN FOR EXAMPLE OVER THE DISCOUNTED TRAVEL RATES THAT AMERICAN EXPRESS PLATINUM CARD MEMBERS RECEIVE RIVAL AGENTS RESENT HAVING TO GO THROUGH AMERICAN EXPRESS TO MAKE THE BOOKING AMERICAN EXPRESS CORPORATE CHARGE CARDS GENERATE REAMS OF TRAVEL DATA ON EVERYTHING FROM A CLIENT'S FAVORITE CARRIER TO ITS MOST FREQUENTED DESTINATIONS THAT DATA CAN BE USED BY AMERICAN EXPRESS WHEN IT BIDS FOR A COMPANY'S TRAVEL ACCOUNT AMERICAN EXPRESS CAN ALSO MAKE SIMULTANEOUS BIDS FOR A COMPANY'S TRAVEL AND CARD BUSINESS AS IT DID LAST YEAR WHEN IT WON A 36 MILLION AIRTRAVEL ACCOUNT PLUS A CHARGE ACCOUNT FROM WR GRACE & CO AMERICAN EXPRESS NOW HAS 68 OF THE FORTUNE 100 AS TRAVEL CLIENTS OF THESE ALL BUT ONE USE THE CHARGE CARD ALEXANDER ANOLIK A SAN FRANCISCO TRAVEL LAWYER WHO HAS FILED COMPLAINTS WITH THE JUSTICE DEPARTMENT ACCUSING AMERICAN EXPRESS OF UNFAIR TRADE PRACTICES SAYS THEY'RE THE MOST DANGEROUS ENTITY IN THE TRAVEL INDUSTRY AMERICAN EXPRESS OFFICIALS SAY THEY PLAY BY THE RULES AND ARGUE THAT THE BIGGEST WINNERS ARE THEIR CLIENTS WHO BENEFIT FROM THE COMPANY'S MASSIVE PURCHASING POWER AND ITS TECHNOLOGICAL SOPHISTICATION THE COMPANY'S STANDING IN THE TRAVEL INDUSTRY IS HIGH OFFICIALS SAY POINTING TO AN AMERICAN EXPRESSSPONSORED SURVEY THAT ASKED 14000 AGENCIES WHICH CREDITCARD COMPANY PROVIDES THEM THE BEST OVERALL SERVICE AMERICAN EXPRESS WAS RANKED FIRST RECEIVING 39 OF THE VOTES EXECUTIVES ALSO NOTE THAT THE COMPANY SPENDS MILLIONS EACH YEAR PROMOTING THE TRAVEL INDUSTRY FOR 20 OR 30 YEARS THEY SAID WE WERE A SLEEPING GIANT AND NOW THAT WE'RE NOT ASLEEP THEY SAY WE'RE CHEATING SAYS ROGER H BALLOU PRESIDENT OF THE TRAVEL RELATED SERVICES GROUP EVEN THOUGH AMERICAN EXPRESS'S TRAVEL AND CREDITCARD OPERATIONS ARE BOTH UNDER MR BALLOU'S PURVIEW THE BUSINESSES ARE RUN INDEPENDENTLY OFFICIALS SAY AND CORPORATECARD INFORMATION ISN'T USED TO BID ON TRAVEL ACCOUNTS WITHOUT A CLIENT'A EXPLICIT APPROVAL THESE EXECUTIVES SAY THEY WANT TO AVOID ANGERING RIVAL AGENCIES WHO COULD ENCOURAGE THEIR OWN CLIENTS TO PAY THEIR BILLS WITH A VISA OR MASTERCARD AMERICAN EXPRESS HAS BEEN SELLING TRAVELER'S CHECKS FOR ABOUT 100 YEARS BUT DIDN'T BECOME A MAJOR PLAYER IN THE TRAVELAGENCY BUSINESS UNTIL THE 1980S WHEN THE COMMERCIAL TRAVEL MARKET BOOMED AND MEGAAGENCIES EMERGED RIVAL AGENCIES HAVE CLAIMED THAT AMERICAN EXPRESS'S GROWTH IN THIS BUSINESS WAS AT LEAST PARTIALLY MOTIVATED BY A DESIRE TO PROTECT ITS CHARGE CARD NO AIRLINE FOR EXAMPLE CAN REFUSE TO ACCEPT THE AMERICAN EXPRESS CARD IF AMERICAN EXPRESS CAN PUT TRAVELERS ON OTHER AIRLINES MR BALLOU SAYS AMERICAN EXPRESS'S TRAVELAGENT BUSINESS IS PROFITABLE AND THAT ITS RETURN ON EQUITY IS GREATER THAN THE CARD BUSINESS THE COMPANY DOESN'T BREAK OUT AGENCY EARNINGS SEPARATELY IF IT DOESN'T RETURN A PROFIT WE WALK AWAY FROM AGENCY ACQUISITIONS MR BALLOU SAYS BUT THE AGENCY BUSINESS CLEARLY HELPS AMERICAN EXPRESS'S OTHER OPERATIONS AT A MINIMUM IT CAN HELP SELL CORPORATE ACCOUNTS BY OFFERING STREAMLINED BILLING TO COMPANIES THAT SIGN UP FOR BOTH SERVICES AIRLINES HOTELS RENTALCAR COMPANIES AND CRUISE LINES HAVE THEIR OWN COMPLAINTS WITH AMERICAN EXPRESS THEY LIKE ALL MERCHANTS PAY AMERICAN EXPRESS A TRANSACTION FEE EVERY TIME A CARD IS USED FOR PAYMENT AND THE FEE IS TYPICALLY HIGHER THAN WHAT VISA MASTERCARD AND OTHER CARD COMPANIES CHARGE SOME TRAVEL EXECUTIVES FEAR THEIR BARGAINING POWER VISAVIS THE AMERICAN EXPRESS FEE COULD BE DIMINISHED BY THEIR RELIANCE ON AMERICAN EXPRESS AGENTS TO SELL THEIR PRODUCT CONSIDER WHAT HAPPENED TO CARNIVAL CRUISE LINES FOUR YEARS AGO IT STOPPED ACCEPTING THE AMERICAN EXPRESS CHARGE CARD THE FEES WERE TWICE AS HIGH AS OTHER CREDIT CARDS IT SAID AND COST CARNIVAL AN EXTRA 1 MILLION A YEAR AMERICAN EXPRESS TRAVEL AGENCIES PROMPTLY DROPPED CARNIVAL AS A PREFERRED SUPPLIER CUT BACK ON CARNIVAL SALES AND AT A CONVENTION FOR AMERICAN EXPRESS AGENTS SHOWED A SLIDE OF A BURNING CARNIVAL BROCHURE I WAS LESS THAN PLEASED SAYS CARNIVAL'S PRESIDENT ROBERT H DICKINSON AMERICAN EXPRESS OFFICIALS CONFIRM THE INCIDENT AIRLINE EXECUTIVES SAY THAT AMERICAN EXPRESS IS A TOUGH BUT FAIR NEGOTIATOR AND THE COMPANY DELIVERS WHAT IT PROMISES BUT THEY SAY THEIR RELATIONSHIP WITH AMERICAN EXPRESS CAN BE EXPENSIVE BECAUSE ITS AGENTS SELL SO MUCH TRAVEL AMERICAN EXPRESS IS ABLE TO CUT FAVORABLE DEALS FOR ITS CUSTOMERS AND AS ITS TRAVEL BUSINESS GROWS IT WILL CONTINUE TO DO SO AMERICAN EXPRESS SAYS ITS AGENCY CLOUT IS OVERSTATED NOTING THAT IT ACCOUNTS FOR ONLY ABOUT 6 OF ALL US TRAVEL SALES I CAN'T BLUDGEON AMERICAN AIRLINES INTO DOING A DAMN THING EVEN IF I WERE INCLINED MR BALLOU SAYS HE SAYS HE HAD NO CHOICE BUT TO DROP CARNIVAL AS A PREFERRED SUPPLIER AFTER THE LINER DROPPED THE CARD WHY SHOULD I PUT CLIENTS ON THEIR CRUISE WHEN THEY DON'T SUPPORT OUR PRODUCT MR BALLOU ASKS EVEN AMERICAN EXPRESS'S HARSHEST CRITICS BETRAY AN ENVY FOR THE WAY THE COMPANY JUGGLES ITS BAG OF BUSINESSES IT'S UNFAIR FOR THEM TO SELL CHARGE CARDS THEN USE THEM TO COMPETE FOR MY CLIENT SAYS HAROLD STEVENS PRESIDENT OF STEVENS TRAVEL MANAGEMENT IN NEW YORK BUT IF I WERE AMERICAN EXPRESS I'D DO THE SAME THING PLUS MORE 9402240113 940224 ENTERTAINMENT DISNEY BETS BROADWAY BEAST IS GOLDEN BOY BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO MOVIE MAKER AND THEMEPARK OPERATOR IS BETTING THERE'S GOLD TO BE MINED ON BROADWAY AND IT MAY ALREADY HAVE FOUND TRACES ITS 10 MILLIONPLUS STAGE PRODUCTION OF BEAUTY AND THE BEAST SET TO OPEN APRIL 18 AT THE PALACE THEATER DREW 250000 IN TICKET SALES THE DAY THE BOX OFFICE OPENED LAST MONTH IN NEW YORK AND ADVANCE SALES REMAIN ROBUST TICKET PRICES FOR THE PRODUCTION RANGE FROM 20 FOR A REAR BALCONY SEAT AT WEDNESDAY MATINEES ALL THE WAY UP TO 65 THE SHOW WHICH WILL USE MUCH OF THE SAME MUSIC AS DISNEY'S ANIMATED MOVIE VERSION STARS STAGE AND TV ACTRESS SUSAN EGAN AS BELLE BROADWAY VETERAN TERRENCE MANN AS THE BEAST AND TV ACTOR TOM BOSLEY AS BELLE'S FATHER DISNEY BELIEVES BROADWAY STAGE VERSIONS OF ITS ANIMATED FILMS MIGHT BE A SIGNIFICANT NEW PROFIT CENTER BIG HITS SUCH AS CATS EXECUTIVES SPECULATE EASILY RETURN 150 MILLION TO 200 MILLION IN PROFIT SIMILAR TO WHAT A BLOCKBUSTER MOVIE LIKE PRETTY WOMAN CAN DELIVER AND DISNEY BELIEVES THE STAGE VERSIONS COULD BOLSTER THE LONGTERM VALUES OF ITS ANIMATED FEATURES WHICH DRIVE THE EARNINGS OF SOME OF ITS CONSUMER PRODUCTS AND THEME PARK BUSINESSES FEW INVESTMENTS ARE RISKIER THAN BROADWAY SHOWS THEY COST MILLIONS TO PRODUCE AND MOST FAIL WHILE OTHER STUDIOS HAVE INVESTED IN BROADWAY SHOWS NONE HAS TRIED TO MAKE IT A LONGTERM STANDALONE BUSINESS AS DISNEY IS TRYING TO DO IT EVEN HAS AGREED TO SPEND 29 MILLION TO REFURBISH AND REOPEN THE HISTORIC NEW AMSTERDAM THEATER ON 42ND STREET NEAR BROADWAY TO HOUSE FUTURE SHOWS DISNEY EXECUTIVES ARE OPTIMISTIC ABOUT BEAUTY AND THE BEAST PARTLY BECAUSE THE SHOW GOT NIGHTLY STANDING OVATIONS DURING A SIXWEEK TRYOUT IN HOUSTON LATE LAST YEAR I'LL BE SHOCKED AND DISAPPOINTED IF I'M WRONG BUT I'VE BEEN WRONG BEFORE SAYS MICHAEL EISNER DISNEY'S CHAIRMAN AND CHIEF EXECUTIVE SUCCESS OR FAILURE WILL DEPEND ON HOW MANY PEOPLE WILL PAY 65 FOR ORCHESTRA SEATS TO WATCH A MUSICAL THAT THEY PAID 750 TO SEE IN A MOVIE THEATER TWO YEARS AGO AND PROBABLY HAVE AT HOME ON VIDEOCASSETTE DISNEY BELIEVES THAT WON'T BE A PROBLEM REASONING THAT THE MUSICAL ISN'T SIMPLY A STAGE VERSION OF THE MOVIE FOR ONE THING IT'S A LONGER STORY THAT INCLUDES SOME SONGS CUT FROM THE FILM THERE WAS A WATERSHED MOMENT IN WHICH THE CREATORS OF THE SHOW NEEDED THE FREEDOM TO WALK AWAY FROM THE MOVIE RECALLS JEFFREY KATZENBERG CHAIRMAN OF WALT DISNEY STUDIOS HE SAYS THE CREATORS REINVENTED THE STORY AND CAME UP WITH A MUSICAL THAT SPORTS BREATHTAKING COSTUMES AND SPECIAL EFFECTS IF THERE'S ANY CONCERN IT'S HOW DISNEY WILL BE GREETED BY CRITICS AUDIENCES AND BROADWAY POWERBROKERS WE'RE NOT DOING NICHOLAS NICKLEBY' MR KATZENBERG WARNS REFERRING TO A FAVORITE OF CRITICS AND UPSCALE AUDIENCES SOME YEARS AGO I HOPE PEOPLE DON'T HAVE EXPECTATIONS THAT WE'RE GOING TO DO ANYTHING OTHER THAN STRIVE TO BRING WHAT IT IS THAT DISNEY REPRESENTS TO THIS NEW VENTURE DISNEY IS PLAYING THE BROADWAY GAME BY ITS OWN RULES FOR EXAMPLE ALTHOUGH DISNEY IS ADHERING TO UNION REGULATIONS MANY OF THOSE HIRED TO STAGE THE SHOW AREN'T GETTING THE SAME POTENTIALLY LUCRATIVE PROFITSHARING DEALS THEY MIGHT GET IN OTHER BIGBUDGET BROADWAY MUSICALS DISNEY SAYS THIS IS SO IT CAN RECOUP ITS INVESTMENT MORE QUICKLY BUT ADDS THAT THE SHOW'S CREATIVE TEAM WAS WELL COMPENSATED UPFRONT IF THE SHOW IS A HIT THE COMPANY WON'T HAVE TO SHARE AS MUCH OF THE PROFITS BECAUSE MANY OF THE PEOPLE INVOLVED IN THE SHOW ARE YOUNG AND INEXPERIENCED THEY HAVEN'T RESISTED SUCH ARRANGEMENTS IT'S THE FIRST BROADWAY SHOW FOR ROBERT JESS ROTH THE 31YEAROLD DIRECTOR WHO MADE HIS NAME DIRECTING 20MINUTE DISNEY THEMEPARK REVUES THE MUSICAL'S CHOREOGRAPHER AND SCENIC DESIGNER HAVE SIMILAR CREDITS DO I WISH WE WERE ALL GOING TO MAKE MORE MONEY YEAH MR ROTH SAYS DO I CARE REALLY NO I'M DOING THIS BECAUSE IT'S AN OPPORTUNITY OF A LIFETIME INDUSTRY EXECUTIVES SPECULATE THAT THE MUSICAL'S WEEKLY OPERATING COSTS WILL BE AROUND 400000 ALLOWING DISNEY TO RECOUP ITS INVESTMENT IN ABOUT A YEAR IF THE SHOW PLAYS TO FULL HOUSES UNLIKE OTHER MUSICALS WITH MANY BACKERS BEAUTY AND THE BEAST 'S SOLE PRODUCER IS DISNEY DISNEY IS ALSO DOING OTHER THINGS DIFFERENTLY DISNEY EXECUTIVES SHOWED UP AT PREPRODUCTION MEETINGS WITH STORYBOARDS TYPICALLY USED IN MOVIES THAT MAPPED OUT HOW THEY ENVISIONED EACH SCENE MESSRS EISNER AND KATZENBERG HAVE BEEN INTENSELY INVOLVED IN STAGING THE MUSICAL MR ROTH REMEMBERS A REHEARSAL IN WHICH MR EISNER INSISTED A PARTICULAR SCENE BE REWRITTEN AND RESTAGED AND I COULD BE TOTALLY WRONG MR ROTH REMEMBERS MR EISNER SAYING AT THE END OF THE EXCHANGE MR KATZENBERG FREQUENTLY WOULD HAND MR ROTH PAGES OF NOTES MR ROTH SAYS IT HAS DEFINITELY BEEN A COLLABORATION BUT I'VE BEEN THE DIRECTOR MR KATZENBERG PUTS IT THIS WAY MR ROTH AND PRODUCER ROBERT MCTYRE HAVE BEEN THE QUARTERBACKS AND WE'VE BEEN THE COACHES ON THE SIDELINE DISNEY ORIGINALLY PLANNED TO HOLD PREVIEWS FOR SEVEN WEEKS INSTEAD OF THE TYPICAL THREE TO FOUR WEEKS WHICH WOULD KEEP THE SHOW FROM CRITICS LONGER THAN USUAL DISNEY THIS WEEK MOVED UP THE OPENING FROM APRIL 27 CUTTING PREVIEWS TO JUST UNDER SIX WEEKS INTEREST IN THE MUSICAL HAS BEEN LIVELY ON JAN 31 THE DAY THE BOX OFFICE OPENED IN NEW YORK DISNEY SOLD MORE THAN 250000 IN TICKETS SINCE THEN ADVANCE SALES HAVE CONTINUED TO BE ROBUST TICKET PRICES WILL RANGE FROM 20 FOR A REAR BALCONY SEAT AT WEDNESDAY MATINEES TO 65 BROADWAYSHOW TOUR DIRECTORS ARE BETTING THE SHOW COULD SET RECORDS ON THE ROAD IF CINCINNATI IS A ONEWEEK TOWN FOR TOMMY' I THINK IT COULD EASILY BE A THREEWEEK TOWN FOR BEAUTY AND THE BEAST' SAYS JEFFREY SELLER VICE PRESIDENT OF THE BOOKING OFFICE INC IN NEW YORK AND DISNEY CONTINUES WITH ITS PLANS TO REDO THE NEW AMSTERDAM THEATER THAT WILL BE THE HOME OF OUR SECOND SHOW WHATEVER THAT MIGHT BE AND OUR THIRD AND OUR FOURTH AND MAYBE BY THAT TIME OUR FIRST THREE WILL BE PLAYING ALL OVER THE WORLD MR EISNER SAYS MR KATZENBERG ADDS THAT REGARDLESS OF THE RECEPTION FOR BEAUTY WE'RE COMMITTED TO COMING BACK 9402240112 940224 INTERNATIONAL WELL EXCUSE MOI ENGLISH SUFFERS KICK IN THE DERRIERE FRENCH PROPOSAL THREATENS PRISON TERMS AND FINES FOR USE OF FOREIGN WORDS PARIS REUTER THE FRENCH EVER JEALOUS OF THEIR CULTURAL IDENTITY ARE ERECTING A LANGUAGE BARRIER TO DEFEND AGAINST THE ENGLISH INVASION IF PARLIAMENT PASSES A BILL ANNOUNCED BY THE GOVERNMENT YESTERDAY ADVERTISING IN FRANCE FOR LE CAR OR HIRING STAFF FOR UN JOB COULD LEAD TO A FINE OR POSSIBLY PRISON THE BILL SETS STRICT RULES TO CHECK A RAMPANT INVASION OF FOREIGN WORDS INTO THE FRENCH LANGUAGE AND BRING DOWN THE FULL WEIGHT OF THE LAW ON OFFENDERS IT BANS THE USE OF FOREIGN WORDS IN PUBLIC ANNOUNCEMENTS WORK CONTRACTS ADVERTISING AND ON RADIO AND TELEVISION EXCEPT FOR FOREIGNLANGUAGE PROGRAMS THE BILL COMPLETING EXISTING PIECEMEAL REGULATIONS WILL BE ENFORCED BY POLICE IF IT IS PASSED BY PARLIAMENT LATER THIS YEAR SANCTIONS TO BE DEFINED LATER WOULD INCLUDE FINES AND POSSIBLE PRISON SENTENCES ALTHOUGH THE BILL DOES NOT NAME THE OFFENDING INVADER LANGUAGE IT IS CLEARLY AIMED AT ENGLISH WHICH MANY INTELLECTUALS ACCUSE OF ADULTERATING FRENCH INTO FRANGLAIS WE HAVE TOO OFTEN BELIEVED THAT RELINQUISHING FRENCH WAS THE PRICE TO PAY TO ENTER THE MODERN WORLD TO TRADE AND TO EXCHANGE SCIENTIFIC KNOWLEDGE CULTURE MINISTER JACQUES TOUBON SAID IN AN INTERVIEW WITH THE DAILY LE MONDE MR TOUBON WHO WILL DEFEND THE BILL IN PARLIAMENT SAID THE TIME HAD COME TO HEAD OFF AN AGGRESSIVE EXPANSION OF ENGLISH IN CULTURE AND TRADE THE GOVERNMENT IS TURNING THE POLICY OF FRENCH LANGUAGE INTO A NATIONAL CAUSE HE SAID FRENCH RESEARCHERS OFTEN PUBLISH FINDINGS IN ENGLISH AND BUSINESSMEN PREFER TO USE ENGLISH TERMS SOMETIMES UNDERSTANDABLY SUCH AS WHEN CASHFLOW TRANSLATES INTO FRENCH AS MARGE BRUTE D'AUTOFINANCEMENT WORRIED BY THE INCREASING SHARE OF AMERICAN FILMS AND BOOKS TRANSLATED FROM ENGLISH ON THE FRENCH MARKET FRANCE FOUGHT HARD TO WIN A CULTURAL EXEMPTION KEEPING SUCH GOODS OUT OF THE GATT WORLD TRADE LIBERALIZATION PACT SIGNED LATE LAST YEAR A FOREIGN LANGUAGE OFTEN BECOMES A TOOL OF DOMINATION UNIFORMIZATION A FACTOR OF SOCIAL EXCLUSION AND WHEN USED SNOBBISHLY A LANGUAGE OF CONTEMPT MR TOUBON SAID THE BILL SAYS IN ORDER TO PROTECT THE RIGHT OF THE FRENCH TO BE ADDRESSED IN THEIR OWN LANGUAGE ANNOUNCEMENTS AND SIGNS IN PUBLIC PLACES MUST NOT INCLUDE ANY FOREIGN WORD UNLESS IT HAS NO FRENCH EQUIVALENT BUT CAN BE ACCOMPANIED BY A TRANSLATION IF NEEDED ALL ADVERTISING AND BROADCASTS ON RADIO AND TELEVISION MUST BE IN FRENCH EXCEPT EDUCATIONAL OR FOREIGNLANGUAGE PROGRAMS SUCH AS FOREIGN FILMS BROADCAST IN THE ORIGINAL LANGUAGE CONTRACTS INVOLVING STATE BODIES MUST BE IN FRENCH WITH A TRANSLATION IF ONE PARTY IS FOREIGN OR STATE SUBSIDIES COULD BE WITHHELD WORK CONTRACTS MUST BE IN FRENCH WITH A FRENCH EXPLANATION OF ANY FOREIGN WORD WHICH MAY HAVE TO BE USED THE BILL SAID SEMINARS MUST ALLOW FRENCH PARTICIPANTS TO USE THEIR OWN LANGUAGE AND ADDRESSES MADE IN A FOREIGN LANGUAGE SHOULD AT LEAST BE ACCOMPANIED BY A FRENCH SUMMARY BUT IN A BUSINESSMINDED EXCEPTION IT SAID THE BAN WOULD BE LIFTED IF A MEETING WAS MEANT TO SELL FRENCH GOODS ABROAD 9402240111 940224 SPECTRUM INFORMATION REPORTS WIDER LOSS FOR ITS THIRD PERIOD NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC THE EMBATTLED WIRELESS DATA COMPANY POSTED WIDER LOSSES OF 121 MILLION IN ITS THIRD QUARTER ENDED DEC 31 AND CLOSED ITS MOBILE SERVICES UNIT THE THIRDQUARTER LOSS AMOUNTED TO 17 CENTS A SHARE AGAINST A PROFIT OF 387000 OR A PENNY A SHARE A YEAR EARLIER REVENUE ROSE 58 TO 244 MILLION FROM 154 MILLION FOR THE NINE MONTHS SPECTRUM HAD A LOSS OF 174 MILLION OR 25 CENTS A SHARE COMPARED WITH A LOSS OF 66 MILLION OR 11 CENTS A SHARE A YEAR AGO REVENUE ROSE 40 TO 654 MILLION FROM 466 MILLION THE LOSSES FOLLOW A RESTATEMENT EARLIER THIS MONTH BY THE MANHASSET NY COMPANY WHICH LED IT TO REPORT LOSSES INSTEAD OF PROFITS AND LOWER REVENUE FOR ITS SECOND AND THIRD QUARTERS SPECTRUM WHICH HOLDS PATENTS FOR SENDING DATA OVER CELLULAR PHONE NETWORKS IS UNDER A FEDERAL PROBE AND IS THE TARGET OF A MASSIVE SHAREHOLDER LAWSUIT SPECTRUM SAID THE LOSS INCLUDES A 47 MILLION CHARGE RELATED TO THE SHAREHOLDER SUIT AND A SPECIAL CHARGE OF 29 MILLION FOR THE SHUTDOWN OF ITS DATA ONE MOBILE UNIT TWO WEEKS AGO SPECTRUM'S HIGHPROFILE CHAIRMAN JOHN SCULLEY QUIT CHARGING THAT SPECTRUM PRESIDENT PETER CASERTA MISLED HIM ABOUT THE COMPANY'S FINANCES THE DATA ONE SHUTDOWN LEAVES SPECTRUM WITH ITS CELLULAR TECHNOLOGY UNIT A COMPUTERDISTRIBUTION SUBSIDIARY WHICH IS THE SOURCE OF MORE THAN 90 OF ITS REVENUE AND AN ENGINEERING RENTAL COMPANY THE COMPANY SAID IT IS SEEKING A SUCCESSOR TO MR SCULLEY 9402240110 940224 POLITICS & POLICY HOLLINGS CITES CONCERNS ON CLINTON PLAN TO SIMPLIFY VIDEOTRANSMISSION RULES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE COMMERCE COMMITTEE CHAIRMAN ERNEST F HOLLINGS D SC RAISED CONCERNS ABOUT A CLINTON ADMINISTRATION PROPOSAL TO LET TELEPHONE AND CABLE COMPANIES THAT PROVIDE TWOWAY VIDEOTRANSMISSION SERVICES OPT FOR STREAMLINED REGULATION COMMERCE SECRETARY RON BROWN ARGUED FOR THE PLAN DURING TESTIMONY BEFORE THE COMMERCE COMMITTEE MR BROWN SUGGESTED ADDING THE PROPOSAL TO A SWEEPING TELECOMMUNICATIONS BILL SEN HOLLINGS AND OTHERS INTRODUCED EARLIER THIS MONTH SEN HOLLINGS SAID HE VIEWED THE PROPOSAL AS OPTIONAL AND ASSERTED THAT COMPANIES SHOULDN'T BE ALLOWED TO CHOOSE HOW THEY WILL BE REGULATED HE ALSO SUGGESTED THAT THE PLAN WOULDN'T HAVE MUCH IMMEDIATE IMPACT SINCE IT PROBABLY WILL TAKE MANY YEARS BEFORE COMPANIES BUILD SUCH HIGHCAPACITY NETWORKS NONETHELESS SEN HOLLINGS HELD OUT THE POSSIBILITY THAT A REVISED VERSION OF THE ADMINISTRATION PLAN MIGHT END UP IN THE TELECOMMUNICATIONS BILL WHICH STANDS A GOOD CHANCE OF PASSAGE THIS YEAR SEN HOLLINGS SAID THE COMMITTEE WILL HOLD A SERIES OF HEARINGS ON THE BILL THE MEASURE SPONSORED BY A MAJORITY OF COMMITTEE MEMBERS IS EXPECTED TO PASS THE COMMITTEE BY EARLY SUMMER AND COULD COME UP FOR A FULL SENATE VOTE QUICKLY AFTER THAT THE ADMINISTRATION'S PLAN WOULD ESTABLISH A NEW TITLE VII TO THE COMMUNICATIONS ACT FOR COMPANIES THAT OFFER TWOWAY VIDEO TRANSMISSION SERVICES FOR AT LEAST 20 OF THEIR SUBSCRIBERS IN A STATE COMPANIES PROVIDING SUCH SERVICES COULD OPT TO BE REGULATED UNDER TITLE VII AND SERVICES DELIVERED OVER THOSE NETWORKS VIDEO CONVERSATIONS DATA OR OTHER TRANSMISSIONS WOULD GET STREAMLINED TREATMENT THE IDEA IS TO AVOID CONFLICTING OR DUPLICATIVE REGULATIONS ON BALANCE MR BROWN SUPPORTED THE HOLLINGS BILL WHILE SUGGESTING SEVERAL CHANGES ONE OF THE BIGGEST INVOLVES HURDLES THE REGIONAL BELL COMPANIES WOULD HAVE TO JUMP BEFORE BEING ALLOWED TO PROVIDE LONGDISTANCE SERVICES SEN HOLLINGS WOULD REQUIRE THAT THE BABY BELLS MUST PROVE AMONG OTHER THINGS THAT THEY FACE ACTUAL COMPETITION IN PROVIDING LOCAL TELEPHONE SERVICE BEFORE ENTERING THE LONGDISTANCE MARKET MR BROWN URGED REQUIRING REVIEWS BY BOTH THE FEDERAL COMMUNICATIONS COMMISSION AND JUSTICE DEPARTMENT AN APPROACH CONSISTENT WITH LEGISLATION PENDING IN THE HOUSE HE SAID FOR INSTANCE THAT BEFORE LETTING A BABY BELL PROVIDE LONGDISTANCE SERVICE JUSTICE DEPARTMENT OFFICIALS WOULD HAVE TO FIND THAT THE COMPANY WOULD POSE NO SUBSTANTIAL POSSIBILITY OF HARM TO THE LONGDISTANCE MARKET FCC CHAIRMAN REED HUNDT ALSO BROADLY ENDORSED THE HOLLINGS BILL IN TESTIMONY HE SAID IT EMBODIES A VISION OF A NEW ERA OF INNOVATION AND GROWTH FOR WHAT MAY BE THE MOST IMPORTANT SECTOR OF OUR ECONOMY IN THE NEXT CENTURY 9402240108 940224 BUSINESS BRIEF PREMIER BANCORP INC FIRM AGREES TO BUY HERITAGE FOR 75 MILLION IN STOCK DEAL PREMIER BANCORP INC BATON ROUGE LA SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD HERITAGE FINANCIAL CORP RUSTON LA AND ITS SUBSIDIARIES FOR NO LESS THAN 75 MILLION IN STOCK HERITAGE HAS ASSETS OF 433 MILLION AND FOUR SUBSIDIARY BANKS WITH 18 BRANCHES IN NORTH CENTRAL LOUISIANA ACCORDING TO PREMIER WHICH HAS 111 BRANCH OFFICES AROUND THE STATE AND ASSETS OF 42 BILLION TERMS OF THE AGREEMENT CALL FOR EACH OF THE 546074 COMMON SHARES OUTSTANDING OF HERITAGE TO BE CONVERTED INTO 763 SHARES OF PREMIER COMMON STOCK OR ABOUT 42 MILLION SHARES SUBJECT TO ADJUSTMENT SO THE TOTAL VALUE OF THE PREMIER SHARES TO BE ISSUED WILL BE NO LESS THAN 75 MILLION AS OF DEC 31 PREMIER HAD ABOUT 28 MILLION COMMON SHARES OUTSTANDING PREMIER SAID COMPLETION OF THE ACQUISITION IS DEPENDENT ON COMPLETION OF DUE DILIGENCE EXECUTION OF A DEFINITIVE AGREEMENT APPROVAL BY BOTH COMPANIES' BOARDS AND APPROVAL OF REGULATORY AGENCIES IN NASDAQ STOCK MARKET TRADING PREMIER CLOSED AT 1740 DOWN 125 CENTS 9402240107 940224 BUSINESS BRIEF COLUMBIA/HCA SHUNS BAXTER AWARDS 220 MILLION IN CONTRACTS FOR SUPPLIES LOUISVILLE KY COLUMBIA/HCA HEALTHCARE CORP SAID IT COMPLETED INITIAL NEGOTIATIONS AND AWARDED CONTRACTS ON THE FIRST 220 MILLION OF 17 BILLION IN ANNUAL SUPPLY PURCHASES THE HEALTHCARE SERVICES PROVIDER FORMED OUT OF THE RECENT MERGER OF COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA SAID IT IS REVIEWING ITS SUPPLY CONTRACTS AS A RESULT OF THE MERGER THE NEW CONTRACTS WHICH GO INTO EFFECT BETWEEN MARCH AND JUNE WILL SAVE THE COMPANY ABOUT 60 MILLION ANNUALLY OVER CURRENT ONES MOST OF THE COMPANY'S CONTRACTS ARE FOR ONE OR TWOYEAR TERMS COLUMBIA/HCA NAMED OWENS & MINOR INC RICHMOND VA AS ITS PRIME DISTRIBUTOR FOR MEDICAL AND SURGICAL PRODUCTS INCLUDING SUTURES ENDOSCOPIC INSTRUMENTS AND SYRINGES AN OWENS & MINOR SPOKESMAN SAID HIS COMPANY ALSO WILL DISTRIBUTE SUCH PRODUCTS AS GOWNS FROM JOHNSON & JOHNSON WHICH WAS AWARDED A CONTRACT IN THE CURRENT ROUND OF NEGOTIATIONS HE ADDED THAT DETAILS SUCH AS LENGTH OF THE CONTRACT AND DISTRIBUTION FEES ARE STILL BEING WORKED OUT THE AWARD TO OWENS & MINOR WAS A SIGNIFICANT SETBACK FOR BAXTER INTERNATIONAL INC OWENS & MINOR'S CHIEF COMPETITOR AND THE WORLD'S LEADING HOSPITAL SUPPLIER BAXTER WHICH PREVIOUSLY HELD ABOUT HALF OF THE BUSINESS THAT COLUMBIA/HCA JUST AWARDED HAD NEGOTIATED UNSUCCESSFULLY TO RETAIN IT BAXTER OFFICIALS SAID FURTHERMORE BAXTER'S US HOSPITAL BUSINESS HAS ALREADY BEEN HIT WITH DECLINING PROFIT MARGINS IN RECENT MONTHS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY OWENS & MINOR'S STOCK ROSE 875 CENTS TO 26125 COLUMBIA/HCA ROSE 75 CENTS TO 4350 AND BAXTER'S STOCK FELL 75 CENTS TO 2325 CONTRACTS ALSO WERE AWARDED TO BRISTOLMYERS SQUIBB CO DUPONT CO AND MEDLINE INDUSTRIES INC 9402240106 940224 ECONOMY WEATHER AND ECONOMIC RECOVERY SHRINK HUGE OIL SURPLUS THAT ROILED MARKETS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE HARSH US WINTER AND AN ECONOMIC RECOVERY IN MAJOR OILCONSUMING NATIONS ARE HELPING TO RESTORE A FRAGILE BALANCE TO THE WORLD'S OIL SUPPLYDEMAND PICTURE AS A RESULT MONITORS OF PETROLEUM SUPPLIES SUGGEST THE HUGE SURPLUS OF STORED OIL THAT CREATED SUCH TURMOIL IN OIL MARKETS IN RECENT MONTHS IS QUIETLY FADING AWAY BUT THE GLUT MAY BE BACK BY SPRING THE INVENTORY OVERHANG AT THE END OF LAST YEAR HAS BEEN SHARPLY REDUCED AND THAT PRESENTS A MORE BALANCED FUNDAMENTALS OUTLOOK SAID ROBERT MCNALLY OILMARKET ANALYST WITH ENERGY SECURITY ANALYSIS A WASHINGTONBASED FIRM THAT MONITORS SUPPLIES WE ARE PROBABLY DRAWING DOWN INVENTORIES BY AT LEAST ONE MILLION BARRELS A DAY SAID GEORGE GASPAR AN OIL ANALYST AT ROBERT W BAIRD & CO AND PUBLISHER OF THE GASPAR REPORT ON ENERGY INDEED MR GASPAR ESTIMATES THAT OIL PRICES BASED ON WEST TEXAS INTERMEDIATE OR WTI THE US BENCHMARK CRUDE HAVE ALREADY REACHED WHAT HE CALLS A NEARTERM BOTTOM AT 14 A BARREL BUT SO FAR THE REDUCTION IN STOCKS THE INDUSTRY TERM FOR PETROLEUM INVENTORIES HAS FAILED TO REBUT SKEPTICS WHO STILL THINK THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTINUES TO PUMP TOO MUCH OIL OIL PRICES AS A RESULT STILL HOVER NEAR FIVEYEAR LOWS AT THE HEART OF THE MATTER IS THE WIDESPREAD PERCEPTION THAT THE OIL GLUT PERSISTS AND THAT OPEC IS UNABLE TO DO ANYTHING ABOUT IT INDEED THE GLUT COULD RETURN IN THE SECOND QUARTER WHEN OIL DEMAND USUALLY SLACKENS SEASONALLY THAT'S WHY MANY IN THE OIL INDUSTRY WORRY THAT PRICES WHICH DROPPED MORE THAN 5 A BARREL LAST YEAR WILL FALL FURTHER IN THE SPRING UNLESS OPEC CUTS OUTPUT AT LEAST ONE MILLION BARRELS A DAY THERE HAVE BEEN SOME BRIEF PRICE RUNUPS DURING THE ARCTIC BLASTS THAT HAVE SWEPT THE US FREQUENTLY THIS WINTER HOWEVER WITHOUT OPEC PRODUCTION CUTBACKS THE US WINTER IS UNLIKELY TO PREVENT ANOTHER BOUT OF OILPRICE WEAKNESS IN THE SPRING KLEINWORT BENSON ANALYSTS SAID IN A RECENT REPORT BARRING AN OPEC PRODUCTION CUT THEY ESTIMATED THAT NORTH SEA'S BRENT CRUDE WHICH USUALLY TRAILS WTI PRICING LEVELS BY 1 A BARREL WILL AVERAGE 12 TO 13 A BARREL IN THE SECOND QUARTER YESTERDAY WORLD OIL PRICES GENERALLY ROSE SLIGHTLY IN THIN US FUTURES TRADING CRUDE FOR APRIL DELIVERY WAS UP A MODEST TWO CENTS A BARREL TO SETTLE AT 1441 DESPITE THE LOW PRICES MOST OILINDUSTRY PUBLICATIONS TRACKING GLOBAL SUPPLIES CONFIRM THAT INVENTORIES ARE FALLING SHARPLY IT MAY SEEM LIKE A CLEVER VANISHING TRICK AND INDEED THE DISAPPEARING ACT PROBABLY WON'T LAST SAID THIS WEEK'S ISSUE OF PETROLEUM INTELLIGENCE WEEKLY BUT FOR ONE BRIEF SHINING MOMENT THE 80 TO 100MILLIONBARREL STOCK OVERHANG THAT HAS DOGGED MARKETS SINCE AUTUMN LOOKS TO HAVE NEARLY VANISHED PETROLEUM INTELLIGENCE'S GLOBAL OIL STOCKS & BALANCES ESTIMATED GLOBAL COMMERCIAL INVENTORIES OF PETROLEUM ENDED LAST MONTH AT 4752 BILLION BARRELS THAT WAS JUST 32 MILLION ABOVE THE YEAREARLIER LEVEL AND NO LONGER EXCESSIVE BY HISTORICAL STANDARDS IT SAID THE WEEKLY PETROLEUM ARGUS MEANWHILE SAID THAT 1994 OIL DEMAND IS EXPECTED TO AVERAGE 675 MILLION BARRELS A DAY OR 1 MORE THAN THE 1993 AVERAGE A SISTER PUBLICATION PETROLEUM ARGUS MONTHLY ADDED IF OIL DEMAND HOLDS UP AND STOCKS CONTINUE TO FALL AS EXPECTED OPEC MAY NOT NEED TO CUT OUTPUT IN THE SECOND QUARTER 9402240105 940224 INTERNATIONAL BRIEF NATIONAL WESTMINSTER BANK PLC PRETAX PROFIT CLIMBED IN '93 BUT STOCK PRICE FALLS 54 NATIONAL WESTMINSTER BANK PLC ANNOUNCED A MORE THAN TWOFOLD INCREASE IN 1993 PRETAX PROFIT AND WAS REWARDED WITH A 54 DROP IN ITS SHARE PRICE DESPITE THE OVERALL IMPROVEMENT IN EARNINGS WHICH WAS IN LINE WITH MARKET PREDICTIONS ANALYSTS VOICED CONCERN ABOUT A DECLINE IN THE BRITISH CONCERN'S NET INTEREST INCOME DURING 1993 AND EXPECTATIONS OF CONTINUING WEAK DEMAND FOR LOANS IN 1994 SHARES FELL TO 504 PENCE 746 FROM 533 PENCE ON THE LONDON STOCK EXCHANGE NATWEST SAID PRETAX PROFIT ROSE TO 989 MILLION 146 BILLION FROM 367 MILLION BUT THE INCREASE MAINLY REFLECTED A 537 MILLION FALL IN PROVISIONS FOR BAD AND DOUBTFUL DEBTS TO 126 BILLION NET INTEREST INCOME THE DIFFERENCE BETWEEN MONEY EARNED ON LOANS AND INTERESTBEARING INVESTMENTS ON THE ONE HAND AND MONEY PAID TO DEPOSITORS ON THE OTHER DROPPED 16 IN 1993 TO 37 BILLION AND ANALYSTS FORECAST A FURTHER FALL OF AROUND 2 IN 1994 9402240104 940224 LOUISIANA LAND EXPECTS GAIN NEW ORLEANS LOUISIANA LAND & EXPLORATION CO SAID IT EXPECTS A PRETAX GAIN OF ABOUT 10 MILLION FOR THE FIRST QUARTER OF 1994 THE OIL AND NATURAL GAS COMPANY SAID THE GAIN RESULTS FROM A REVERSAL OF PROVISIONS THE COMPANY MADE FOR SETTLEMENT OF A NATURALGAS ROYALTY LAWSUIT INVOLVING THE STATE OF LOUISIANA AND TEXACO INC LOUISIANA LAND & EXPLORATION PREVIOUSLY ANNOUNCED IT WOULD PAY A 5 MILLION SETTLEMENT IN THE LAWSUIT AND THAT PROVISIONS FOR THAT PAYMENT HAD BEEN MADE 9402240103 940224 COURT APPROVAL FOR AILEEN CREDIT NEW YORK AILEEN INC WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION LAST MONTH SAID IT RECEIVED FINAL COURT APPROVAL OF ITS 5 MILLION REVOLVING CREDIT LINE THE MAKER OF WOMEN'S SPORTSWEAR WHICH OPERATES RETAIL OUTLET STORES IN 40 STATES SAID THE LENDER IS STERLING NATIONAL BANK & TRUST CO OF NEW YORK SEPARATELY AILEEN SAID NET RETAIL SALES FOR THE FIVE WEEKS ENDED JAN 29 FELL TO 32 MILLION FROM A YEAREARLIER 48 MILLION SALES AT STORES OPEN AT LEAST A YEAR FELL 40 THE COMPANY BLAMED BAD WEATHER FOR THE DECLINE 9402240102 940224 WHO'S NEWS HOMEFED SAYS ITS CHIEF RESIGNS SAN DIEGO HOMEFED CORP SAID ITS CHIEF EXECUTIVE OFFICER THEODORE H SPRINK RESIGNED TO PURSUE OTHER BUSINESS OPPORTUNITIES HOMEFED ONCE ONE OF THE NATION'S BIGGEST THRIFTS FAILED IN 1992 BECAUSE OF HUGE LOSSES ON REALESTATE LOANS MR SPRINK BECAME CHIEF EXECUTIVE JUST BEFORE THE THRIFT WAS SEIZED BY FEDERAL REGULATORS HE STAYED ON WORKING WITH THE GOVERNMENT TO SELL OFF MOST OF HOMEFED'S BRANCHES AND OTHER SALVAGEABLE ASSETS HOMEFED SAID IT HASN'T DECIDED WHETHER TO SEEK A SUCCESSOR 9402240101 940224 BUSINESS BRIEF EATON CORP LAYOFFS OF 1200 ARE PLANNED AS PART OF UNIT'S OVERHAUL EATON CORP SAID IT WOULD LAY OFF 1200 WORKERS CLOSE EIGHT FACILITIES AND RELOCATE SEVERAL PRODUCT LINES AS PART OF A RESTRUCTURING AT ITS ELECTRICALEQUIPMENT UNIT THE RESTRUCTURING FOLLOWS THE COMPANY'S RECENT 11 BILLION ACQUISITION OF WESTINGHOUSE ELECTRIC CORP'S DISTRIBUTION AND CONTROL BUSINESS EATON A CLEVELAND MANUFACTURER OF INDUSTRIAL PRODUCTS SAID THE MOVE WAS NECESSARY TO ELIMINATE OVERCAPACITY CAUSED BY THE MERGER OF ITS INDUSTRIAL CONTROL AND POWER DISTRIBUTION OPERATIONS UNIT WITH WESTINGHOUSE'S DISTRIBUTION AND CONTROL BUSINESS UNIT THE COMPANY SAID THE RESTRUCTURING WOULD BE COVERED BY A 55 MILLION PRETAX CHARGE RECORDED IN THE 1993 FOURTH QUARTER AND OTHER RESERVES A SPOKESMAN SAID NO ADDITIONAL CHARGES RELATED TO THE RESTRUCTURING WERE EXPECTED THE COMBINED BUSINESSES WILL OPERATE UNDER THE NAME CUTLERHAMMER PRIOR TO THE LAYOFFS THE MERGED BUSINESSES HAVE ABOUT 17200 EMPLOYEES 9402240100 940224 CFTC PROPOSES NEW RULES TO ASSESS RISKS FACING FUTURESBROKERAGE FIRMS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION WANTS MORE INFORMATION ABOUT THE FINANCIAL RISKS THAT HOLDING COMPANIES AND AFFILIATES CAN POSE FOR FUTURESBROKERAGE FIRMS THE COMMISSION HAS HAD TO SCRAMBLE TO HELP SALVAGE THE FUTURES BUSINESSES OF AT LEAST THREE LARGE HOLDING COMPANIES INCLUDING MOST RECENTLY METALLGESELLSCHAFT AG THE GERMAN CONGLOMERATE'S HUGE LOSS FROM A US UNIT'S SPECULATION IN OIL FUTURES APPARENTLY CAUSED SEVERE CASHFLOW PROBLEMS FOR MG FUTURES ANOTHER UNIT THAT IS REGULATED BY THE CFTC THE AGENCY SAID UNDER RULES PROPOSED YESTERDAY THE COMMISSION HOPES TO COLLECT ENOUGH DATA FROM FUTURESBROKERAGE FIRMS TO IDENTIFY POTENTIAL TROUBLE SPOTS WITH THEIR PARENT COMPANIES AND AFFILIATES THE RULES ALSO WOULD REQUIRE ALL FUTURESBROKERAGE FIRMS TO DRAW UP PLANS FOR DEALING WITH FINANCIAL REVERSALS AT AFFILIATED COMPANIES THAT COULD AFFECT THE BROKERAGE FIRMS MUCH OF THE INFORMATION THAT WOULD BE SOUGHT BY THE CFTC ALREADY IS REQUIRED TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT THE ADDITIONAL DISCLOSURE TO THE CFTC WORRIES JOSEPH DIAL ONE OF ITS COMMISSIONERS I FIND THIS DOCUMENT TO BE A BUREAUCRAT'S DREAM AND A PAPERWORK NIGHTMARE FOR THE CFTC AND THE FIRMS MR DIAL SAID DURING THE CFTC MEETING YESTERDAY BRANDISHING A COPY OF THE 38PAGE RULE PROPOSAL THE COMMISSIONER SAID THE PROPOSED RULE REQUIRES TOO MUCH INFORMATION TO BE DIGESTED BY THE ONE CFTC STAFF MEMBER WHO WOULD BE ASSIGNED TO ASSESS IT AND SHOULD BE NARROWED IT NEEDS TO BE PERTINENT TIMELY INFORMATION THAT WE CAN MOVE ON QUICKLY MR DIAL SAID AFTER THE MEETING THE MORE I READ THE PROPOSAL THE MORE I THOUGHT THIS IS NOT THE WAY THE COMMISSION OUGHT TO GO DURING THE MEETING MR DIAL SAID THE CFTC HAS BEEN ABLE TO HANDLE THE FALLOUT FROM HOLDING COMPANIES' TRAVAILS WITHOUT HAVING IN HAND THE INFORMATION THE COMMISSION PROPOSES TO OBTAIN HE CITED DREXEL BURNHAM LAMBERT INC AND STOTLER GROUP INC BOTH OF WHOSE FUTURES BUSINESSES HAD TO BE TRANSFERRED TO OTHER FIRMS AFTER THE PARENT COMPANIES RAN INTO FINANCIAL DIFFICULTIES CUSTOMERS DIDN'T LOSE ANY MONEY IN EITHER INSTANCE MR DIAL SAID DESPITE HIS CONCERNS MR DIAL VOTED WITH THE THREE OTHER COMMISSIONERS TO ISSUE THE RULE PROPOSAL SAYING HE EXPECTS FUTURESINDUSTRY MEMBERS TO BE VERY FORTHCOMING WITH THEIR OWN CONCERNS INDUSTRY COMMENTS ON THE PROPOSED RULE WILL BE COLLECTED FOR 60 DAYS AFTER WHICH THE CFTC WILL VOTE ON A FINAL RULE SEPARATELY THE CFTC APPROVED CHANGES TO ITS RULES UNDER WHICH CUSTOMERS CAN PRESS CLAIMS AGAINST FIRMS REGULATED BY THE AGENCY AMONG OTHER THINGS THE COMMISSION SHORTENED THE PERIOD FOR CERTAIN CLAIMS FILINGS AND CLARIFIED ITS REQUIREMENTS FOR CLAIMANTS SEEKING DAMAGES INTENDED TO PUNISH FIRMS IN A RELATED MATTER THE COMMISSION WITHDREW AN EARLIER PROPOSAL THAT WOULD HAVE ALLOWED CLASSACTION CLAIMS IN WHICH A SINGLE COMPLAINANT SEEKS REPARATION ON BEHALF OF EVERYONE AFFECTED BY A FIRM'S ACTIONS IN ANOTHER MATTER THE CFTC ALSO APPROVED A REQUEST BY THE CHICAGO MERCANTILE EXCHANGE TO REVIVE TRADING IN FUTURES CONTRACTS ON ONEYEAR US TREASURY BILLS 9402240099 940224 NATIONAL RECORD MART BUYBACK PITTSBURGH NATIONAL RECORD MART INC SAID ITS BOARD HAS APPROVED THE BUYBACK OF UP TO 1 MILLION OF ITS COMMON STOCK THE COMPANY SAID PURCHASES WILL BE MADE FROM TIME TO TIME IN THE OPEN MARKET AT ITS OWN DISCRETION THE COMPANY HAS FIVE MILLION COMMON SHARES OUTSTANDING NATIONAL RECORD MART SHARES CLOSED AT 575 UP 1 OR 21 IN NASDAQ STOCK MARKET TRADING YESTERDAY NATIONAL RECORD MART IS A SPECIALTY RETAILER OF PRERECORDED MUSIC PRODUCTS INCLUDING COMPACT DISKS AUDIO AND VIDEOCASSETTES AND RELATED ACCESSORIES 9402240098 940224 CHAMBER OF COMMERCE SETS SURVEY ON HEALTH REFORM WASHINGTON THE US CHAMBER OF COMMERCE SAID IT WILL SURVEY ITS 220000 MEMBERS FOR THEIR VIEWS ON WHETHER HEALTHCARE REFORM LEGISLATION SHOULD INCLUDE A REQUIREMENT THAT EMPLOYERS HELP PAY FOR THEIR WORKERS' MEDICAL INSURANCE PRESIDENT CLINTON'S PROPOSED EMPLOYER MANDATE HAS CAUSED A RIFT IN THE CHAMBER BETWEEN COMPANIES THAT PROVIDE INSURANCE AND SMALLER COMPANIES AND EMPLOYERS OF PARTTIME WORKERS THE NATION'S LARGEST BUSINESS ORGANIZATION HAS STRUGGLED WITH WHAT TO SAY PUBLICLY THIS MONTH A CHAMBER OFFICIAL WITHDREW COPIES OF WRITTEN TESTIMONY ENDORSING A MANDATE SHORTLY BEFORE IT WAS TO BE DELIVERED TO THE HOUSE WAYS AND MEANS COMMITTEE THEN THE CHAMBER'S HEALTHPOLICY COMMITTEE ENDORSED ESSENTIALLY THE SAME APPROACH OF PHASING IN EMPLOYERS' HEALTHCARE PAYMENTS TO REACH 50 OF THE COST OF A LOWESTPRICED PLAN BY THE YEAR 2000 THE CLINTON ADMINISTRATION FAVORS REQUIRING EMPLOYERS TO PAY 80 OF THE COST OF COVERAGE RICHARD LESHER CHAMBER PRESIDENT SAID IT INTENDS TO HEAR ALL ITS MEMBERS' VIEWS BUT MEANWHILE WILL STAND BY THE BOARD'S ESTABLISHED GUIDELINES FOR REFORM WHICH CALL FOR A MARKETBASED SOLUTION WITHOUT EXCESSIVE GOVERNMENT COSTS REGULATION AND BUREAUCRACY THE CHAMBER'S BOARD WHICH MEETS MONDAY WILL REVIEW THE SURVEY RESULTS WHEN THEY BECOME AVAILABLE 9402240097 940224 MARKETING & MEDIA CBS INC DREW ITS HIGHEST RATINGS IN GAMES LAST WEEK BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC HAD THE HIGHESTRATED WEEK IN ITS HISTORY LAST WEEK AS VIEWERS IN RECORD NUMBERS TUNED IN TO THE NETWORK'S COVERAGE OF THE WINTER OLYMPICS GAMES CBS DREW 259 OF THE NATION'S 942 MILLION TV HOUSEHOLDS FOR THE WEEK OF FEB 1420 THE NETWORK'S PREVIOUS HIGH WAS 247 FOR JAN 511 1976 WHEN THE CBS SCHEDULE INCLUDED SUCH POPULAR SHOWS AS MARY TYLER MOORE AND THE WALTONS AND CABLE OFFERED MINIMAL COMPETITION NOW THAT CABLE IS A SERIOUS COMPETITOR TO DO A PERSONAL BEST IS QUITE EXTRAORDINARY SAID DAVID POLTRACK A CBS SENIOR VICE PRESIDENT THE HIGHESTRATED WEEK AT ANY NETWORK WAS FEB 713 1983 WHEN THE MINISERIES WINDS OF WAR HELPED DRAW 321 OF HOUSEHOLDS TO ABC NOW A UNIT OF CAPITAL CITIES/ABC INC CBS IS ON TRACK TO HAVE THE HIGHESTRATED OLYMPICS COVERAGE EVER THE HIGHESTRATED WINTER GAMES WERE THE 1980 LAKE PLACID GAMES WHICH DREW 237 THE 1972 MUNICH GAMES WERE THE TOPRATED SUMMER GAMES ATTRACTING 244 BOTH AIRED ON ABC CBS'S RATINGS ARE 35 AHEAD OF THE NETWORK'S 1992 ALBERTVILLE NUMBERS THROUGH THE FIRST EIGHT DAYS OF THE CURRENT WINTER GAMES WHICH BEGAN FEB 12 ABOUT 170 MILLION PEOPLE OR 70 OF THE US POPULATION TUNED IN AT SOME POINT OF THE OTHER BROADCAST NETWORKS ONLY NEWS CORP'S FOURTHRANKED FOX HAS HELD ITS OWN BECAUSE ITS CORE AUDIENCE OF YOUNG ADULTS IS THE LEAST INTERESTED IN THE GAMES FROM FEB 1220 FOX WAS UP 4 FROM ITS SEASONTODATE AVERAGE ABC AND GENERAL ELECTRIC CO'S NBC WERE DOWN 19 AND 21 RESPECTIVELY CBS EXECUTIVES SAID THE EXTRAORDINARY PREOLYMPICS PUBLICITY HELPED HEIGHTEN VIEWERS' AWARENESS OF THE GAMES HOWEVER EXECUTIVES ATTRIBUTED CBS'S SUCCESS TO THE NETWORK'S PROMOTION OF THE GAMES AS A TELEVISION EVENT NOT A SPORTS EVENT AND TO THE PRACTICE OF TELLING ANECDOTAL STORIES TO ACCOMPANY THE COVERAGE 9402240096 940224 NOTABLE & QUOTABLE FROM VICE PRESIDENT AL GORE'S 1991 BOOK EARTH IN THE BALANCE IN THE LIFETIME OF PEOPLE NOW LIVING WE MAY EXPERIENCE A YEAR WITHOUT WINTER 9402240095 940224 TECHNOLOGY & SCIENCE MICROSOFT STILL EXPECTS BY YEAR'S END TO SHIP CHICAGO SUCCESSOR TO WINDOWS BY LINDLEY H CLARK JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO MICROSOFT CORP REITERATED THAT IT EXPECTS TO SHIP ITS LONGAWAITED CHICAGO OPERATING SYSTEM A SUCCESSOR TO THE LATEST VERSION OF WINDOWS BY THE END OF 1994 AND SAID THE PROGRAM WILL GET A FACE LIFT TO MAKE IT EASIER FOR FIRSTTIME PERSONALCOMPUTER USERS TO OPERATE PAUL MARITZ A MICROSOFT SENIOR VICE PRESIDENT ALSO TOLD REPORTERS THAT A NEW VERSION OF ITS WINDOWS NT OPERATING SYSTEM CODENAMED DAYTONA WILL SHIP BY THE END OF THE SECOND QUARTER THE UPDATE IS DESIGNED TO FIX CURRENT DEFICIENCIES IN WINDOWS NT IN PARTICULAR THE AMOUNT OF MEMORY REQUIRED TO RUN THE PROGRAM IN GENERAL DAYTONA CAN OPERATE IN ABOUT FOUR FEWER MEGABYTES OF MEMORY SINCE A CURRENT MINIMUM CONFIGURATION IS 16 MEGABYTES DAYTONA WOULD ALLOW SOME APPLICATIONS TO WORK WITH 12 MEGABYTES MR MARITZ SAID A TEST VERSION OF CHICAGO WOULD GO OUT TO SOFTWARE DEVELOPERS BY THE END OF MARCH A MUCH BROADER TEST WOULD BEGIN TOWARD THE END OF THE SECOND QUARTER THE COMPANY EXPECTS TO SHIP AS MANY AS 100000 TEST COPIES OF THE PROGRAM COMPARED WITH AROUND 10000 FOR PAST OPERATING SYSTEMS BECAUSE OF THE NEED TO ENSURE STRICT COMPATIBILITY WITH AN INSTALLED BASE OF WINDOWS OPERATINGSYSTEM USERS THAT NOW EXCEEDS 40 MILLION WE'RE PRETTY CONFIDENT THAT WE CAN STILL DO THAT BY THE END OF 1994 SAID MR MARITZ AT A NEWS CONFERENCE HELD AT A MICROSOFTSPONSORED GATHERING HERE OF COMPUTERHARDWARE DEVELOPERS CHICAGO IS MICROSOFT'S CODE NAME FOR A NEW OPERATING SYSTEM THAT WILL SUCCEED WINDOWS 31 THE CURRENT VERSION OF THE POPULAR INTERFACE PROGRAM THAT MADE IBMCOMPATIBLE PCS EASIER TO OPERATE CHICAGO BRINGS BENEFITS THAT INCLUDE MULTITASKING WHICH IS THE ABILITY TO DO MULTIPLE TASKS AT ONCE SUCH AS PRINTING ONE FILE WHILE CREATING ANOTHER THE NEW PRODUCT NEARLY FOUR YEARS IN THE MAKING IS EXPECTED TO HAVE A MAJOR IMPACT ON MICROSOFT'S BUSINESS ANALYSTS ESTIMATE THE COMPANY COULD GENERATE 1 BILLION IN REVENUE FROM CHICAGO IN ITS FIRST 12 MONTHS ON THE MARKET IT'S A MAJOR MAJOR ENDEAVOR FOR US MR MARITZ SAID HE SAID THE NEW INTERFACE FOR CHICAGO WILL ALLOW USERS TO DISCOVER HOW TO PERFORM SIMPLE TASKS WITHOUT EVER USING A MANUAL AN ASSET AS THE COMPANY ATTEMPTS TO BROADEN ITS PENETRATION IN THE HOME PC MARKET IN TESTS MICROSOFT BASED IN REDMOND WASH FOUND THAT EVEN FAMILIAR FUNCTIONS SUCH AS ACTIVATING PROGRAMS BY CLICKING TWICE ON A SYMBOL WITH A MOUSE POINTING DEVICE WERE BEYOND MANY CONSUMERS THE NEW INTERFACE WILL USE A SINGLE MOUSE CLICK TO ACTIVATE PROGRAMS AND ADD OTHER FEATURES TO HELP USERS WITH MULTITASKING IT WILL ALSO ADD SNAZZIER GRAPHICS MICROSOFT OFFICIALS SAID THOUGH THE EXACT APPEARANCE WON'T BE SET UNTIL AFTER USER TESTS WHILE ATTRACTING NEW USERS MICROSOFT DOESN'T WANT TO ALIENATE THOSE HOOKED ON TODAY'S WINDOWS SYSTEM FOR PEOPLE WHO ARE UPGRADING FROM THE CURRENT WINDOWS 31 TO CHICAGO THE NEW OPERATING SYSTEM CAN BE SET TO OFFER A FAMILIAR CONFIGURATION OF FEATURES INCLUDING THE WINDOWS PROGRAM MANAGER AND FILE MANAGER THAT WAY CORPORATE CUSTOMERS CAN PLAN WHEN THEY WANT TO MOVE OVER TO THE NEW INTERFACE NEW COMPUTERS THAT ARE TARGETED AT FIRSTTIME USERS WILL BE ARRANGED TO DEFAULT TO THE NEW INTERFACE MR MARITZ SAID CHICAGO IS DESIGNED TO OPERATE ON COMPUTERS THAT HAVE AT LEAST THE POWER OF A 386 MICROPROCESSOR CHIP AND FOUR MEGABYTES OF MEMORY ON SUCH A MACHINE MICROSOFT SAID EXISTING WINDOWS APPLICATION PROGRAMS WILL RUN AT LEAST AS FAST OR FASTER WHEN USERS CONVERT TO CHICAGO FOR MACHINES WITH MORE MEMORY CHICAGO'S PERFORMANCE WILL BE SIGNIFICANTLY BETTER THAN WINDOWS NT THE COMPANY SAID CHICAGO IS ALSO DESIGNED TO MAKE PCS EASIER TO SET UP WITH THE ADDITION OF CIRCUIT BOARDS AND OTHER ACCESSORIES AS PART OF AN INDUSTRY INITIATIVE CALLED PLUG AND PLAY CHICAGO WILL HELP MAKE IT POSSIBLE FOR A PC TO SENSE NEW ADDON DEVICES AND AUTOMATICALLY RECONFIGURE ITSELF TO WORK WITH THEM THE COMPANY SAID COMPAQ COMPUTER CORP FOR EXAMPLE SHOWED A PROTOTYPE NOTEBOOK COMPUTER THAT PLUGGED INTO A DOCKING DEVICE TO USE TYPICAL PERIPHERAL DEVICES AS A RESULT OF PLUG AND PLAY FEATURES THE COMPUTER AUTOMATICALLY STORED FILES WHEN A USER REMOVED THE COMPUTER FROM THE DOCKING UNIT 9402240094 940224 BUSINESS BRIEF CABLEVISION SYSTEMS CORP FOURTHQUARTER LOSS GREW BUT REVENUE INCREASED 9 CABLEVISION SYSTEMS CORP REPORTED A LARGER NET LOSS AND A 21 DECLINE IN OPERATING CASH FLOW FOR THE FOURTH QUARTER BECAUSE OF A ONETIME CHARGE THE CABLETELEVISION COMPANY BASED IN WOODBURY NY SAID IT HAD A LOSS OF 869 MILLION OR 378 A SHARE COMPARED WITH A LOSS OF 659 MILLION OR 294 A SHARE A YEAR EARLIER REVENUE ROSE 9 TO 172 MILLION OPERATING CASH FLOW FOR THE FOURTH QUARTER DROPPED TO 526 MILLION FROM 664 MILLION LARGELY ON A 155 MILLION NONCASH CHARGE ASSOCIATED WITH AN INCENTIVE STOCK PLAN WITHOUT THE CHARGE CABLEVISION SAID OPERATING CASH FLOW WOULD HAVE INCREASED BY LESS THAN 1 IN THE FOURTH QUARTER WITH FCC RATE REGULATION FOR THE FULL YEAR CABLEVISION POSTED A LOSS OF 2468 MILLION OR 1083 A SHARE COMPARED WITH A LOSS OF 2505 MILLION OR 1117 A SHARE A YEAR EARLIER REVENUE ROSE 16 TO 6667 MILLION AND OPERATING CASH FLOW INCREASED 2 TO 2522 MILLION 9402240093 940224 NO TOBACCO SMOKE WILL COME BETWEEN YOU YOUR BIG MAC FRANCHISEES ARE ENCOURAGED TO FOLLOW MCDONALD'S BAN ON SMOKING IN RESTAURANTS BY RICHARD GIBSON AND CARL QUINTANILLA STAFF REPORTERS OF THE WALL STREET JOURNAL MCDONALD'S CORP SAID IT WILL BAN SMOKING EFFECTIVE IMMEDIATELY IN ITS US COMPANYOWNED RESTAURANTS AND WILL ENCOURAGE FRANCHISEES WHO OPERATE A MAJORITY OF THE 9100 DOMESTIC MCDONALD'S TO FOLLOW SUIT WHILE THE NATION'S LARGEST FASTFOOD CHAIN CAN ONLY SUGGEST POLICY TO THE INDEPENDENT OPERATORS MANY ARE EXPECTED TO EMBRACE IT PARTLY BECAUSE CUSTOMERS WILL LIKELY NOW EXPECT ALL MCDONALD'S TO BE SMOKEFREE WE'RE DOING THIS BECAUSE WE BELIEVE IT'S THE RIGHT THING TO DO FOR OUR CUSTOMERS AND OUR EMPLOYEES SAID EDWARD H RENSI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MCDONALD'S USA HE ALSO CITED PENDING FEDERAL LEGISLATION INTRODUCED BY REP HENRY WAXMAN D CALIF THAT WOULD PROHIBIT SMOKING IN ALL PUBLIC PLACES A GOVERNMENTMANDATED BAN IS THE ONLY FAIR WAY TO APPROACH THE ISSUE BECAUSE IT TREATS ALL PUBLIC PLACES EQUALLY UNDER THE LAW MR RENSI SAID SEVERAL FASTFOOD COMPETITORS INDICATED YESTERDAY THEY HAVE NO IMMEDIATE PLANS TO JOIN THE ANTISMOKING BRIGADE IT JUST HASN'T PRESENTED A REAL CONCERN TO OUR CUSTOMERS SAID A SPOKESMAN FOR WENDY'S INTERNATIONAL INC MAYBE WE'RE BEING CONSERVATIVE BUT WE MAKE DECISIONS BASED ON WHAT THE CUSTOMER TELLS US EVEN SO ABOUT 100 OF WENDY'S 3700 US FRANCHISE AND COMPANYOWNED STORES ARE SMOKEFREE THE COMPANY SAID IT HAS NO PLANS TO EXPAND THAT NUMBER OTHER COMPETITORS SAID THAT WHILE MCDONALD'S ANNOUNCEMENT BRINGS MORE AWARENESS TO THE NONSMOKING MOVEMENT THEY WILL AWAIT CONGRESS'S RESPONSE TO MR WAXMAN'S BILL GOING SMOKEFREE IS A MATTER OF WHEN NOT IF CONCEDED ONE CHAIN'S SPOKESPERSON BUT WE WANT TO BE LEGISLATED NOBODY WANTS TO ALIENATE 25 OF THEIR CUSTOMER BASE BURGER KING CORP A MIAMIBASED UNIT OF GRAND METROPOLITAN PLC SAID ABOUT 600 OF ITS 6000 STORES PROHIBIT SMOKING A SPOKESMAN SAID THE COMPANY'S TOLLFREE CUSTOMER HOTLINE WHICH HANDLES 4000 CALLS A DAY HAS REPORTED A MIXED RESPONSE TO THE NONSMOKING ISSUE WITH NO CONSENSUS THAT CUSTOMERS ARE BOTHERED BY THE SMOKE AT KFC THE CHICKEN CHAIN OWNED BY PEPSICO INC SMOKING IS BANNED IN ONLY THREE TEST MARKETS PHOENIX AUSTIN TEXAS AND LANSING MICH A SPOKESMAN SAID WE DON'T FALL INTO THE NOTION THAT WHEN MCDONALD'S SNEEZES THE REST OF US ALL CATCH A COLD HE ADDED STILL THE TREND IS AWAY FROM SMOKE THE NATIONAL COUNCIL OF CHAIN RESTAURANTS WHOSE MEMBERS OPERATE NEARLY 90000 ESTABLISHMENTS SAID A THIRD OF ITS MEMBERSHIP HAS ALREADY BANNED SMOKING MCDONALD'S FOR EXAMPLE WHICH IS BASED IN OAK BROOK ILL HAS BEEN ENCOURAGING NONSMOKING POLICIES IN MANY OF ITS RESTAURANTS FOR MONTHS AND ALREADY MORE THAN 2200 HAVE GONE SMOKELESS HOWEVER SOME HAVE DONE SO TO COMPLY WITH LOCAL ORDINANCES THE COMPANY'S DECISION TO PROHIBIT SMOKING IN ITS 1400 US RESTAURANTS FOLLOWS A SIMILAR DECISION BY ARBY'S INC FOR ABOUT 250 OF ITS RESTAURANTS COMPANYOWNED RESTAURANTS IN CANADA ALSO ARE AFFECTED BY THE NEW POLICY MCDONALD'S SAID ANTISMOKING GROUPS APPLAUDED MCDONALD'S' ANNOUNCEMENT NOTING SEVERAL LAWSUITS PENDING IN TEXAS AND CONNECTICUT THAT WOULD COMPEL RESTAURANTS TO PROHIBIT SMOKING 9402240092 940224 WHO'S NEWS ACC RESHUFFLES MANAGEMENT ROCHESTER NY ACC CORP SHUFFLED ITS EXECUTIVE MANAGEMENT AS PART OF A NEW FIVEYEAR BUSINESS PLAN THE TELECOMMUNICATIONS CONCERN NAMED 32YEAROLD ARUNAS A CHESONIS PRESIDENT SUCCEEDING RICHARD E SAYERS 57 WHO BECOMES ACC'S VICE CHAIRMAN AND PRESIDENT OF ITS INTERNATIONAL DIVISION MR CHESONIS HAD BEEN PRESIDENT OF ACC LONG DISTANCE CORP MICHAEL R DALEY 33 WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER A POSITION THAT HAD BEEN VACANT FOR SEVERAL YEARS MR DALEY HAD BEEN VICE PRESIDENT FINANCE MESSRS SAYERS CHESONIS AND DALEY ALONG WITH RICHARD T AAB CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ALSO MAKE UP THE NEWLY CREATED OFFICE OF THE CEO MR AAB 44 WILL BE CHAIRMAN OF THE OFFICE OF THE CEO 9402240091 940224 BUSINESS BRIEF DECORA INDUSTRIES INC RUBBERMAID AGREEMENT SET TO RUN THROUGH MARCH '99 DECORA INDUSTRIES INC FORT EDWARD NY SAID IT SIGNED A MANUFACTURING AND DISTRIBUTION AGREEMENT WITH RUBBERMAID INC ITS MAJOR CUSTOMER THROUGH MARCH 31 1999 THE TERMS WEREN'T DISCLOSED BUT DECORA A MAKER OF CONSUMER AND INDUSTRIAL COATING AND ADHESIVE PRODUCTS SAID THAT IN RECENT YEARS SALES TO RUBBERMAID WOOSTER OHIO HAVE ACCOUNTED FOR MORE THAN TWOTHIRDS OF ITS CONSOLIDATED REVENUE NET INCOME FOR DECORA FOR THE NINE MONTHS ENDED DEC 31 TOTALED 13 MILLION REVENUE WAS 383 MILLION UNDER THE TERMS OF AN ORIGINAL AGREEMENT SIGNED IN APRIL 1990 DECORA PRODUCES ITS CONTACT COVERING MATERIAL EXCLUSIVELY FOR RUBBERMAID THE NEW AGREEMENT DECORA SAID SOLIDIFIES THE ONGOING JOINT EFFORTS OF BOTH RUBBERMAID AND DECORA TO EXPAND REVENUES BEYOND THE BASIC DOMESTIC SALES OF CONTACT 9402240090 940224 WHO'S NEWS SAVIN CHIEF EXECUTIVE O'DONNELL RESIGNS FROM HIS NEW POST STAMFORD CONN SAVIN CORP'S CHIEF EXECUTIVE OFFICER JOSEPH M O'DONNELL ANNOUNCED HIS RESIGNATION FROM THE COMPANY AFTER SERVING FEWER THAN THREE MONTHS IN THAT POSITION IN A STATEMENT SAVIN SAID MR O'DONNELL NOTED THAT WHILE HE HAD DIFFERENCES IN MANAGEMENT PHILOSOPHY WITH THE SAVIN BOARD OF DIRECTORS THEY HAVE ALWAYS HAD A GOOD WORKING RELATIONSHIP THE COMPANY OFFERED NO FURTHER COMMENT MR O'DONNELL 47 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER DESIGNATE AT SAVIN IN OCTOBER AND BECAME CHIEF EXECUTIVE OFFICER DEC 14 THE SAME DAY THE MARKETER OF COPIERS AND OTHER PRODUCTS EMERGED FROM CHAPTER 11 OF THE US BANKRUPTCY CODE D THOMAS ABBOTT SAVIN'S CHAIRMAN SAID THE COMPANY WILL IMMEDIATELY BEGIN LOOKING FOR A SUCCESSOR TO MR O'DONNELL 9402240089 940224 BUSINESS BRIEF WARNACO GROUP INC MENSWEAR FIRM'S NET SANK BY 84 IN FISCAL 4TH PERIOD WARNACO GROUP INC REPORTED AN 84 DECLINE IN FISCAL FOURTHQUARTER NET INCOME DUE IN PART TO A ONETIME CHARGE THE NEW YORKBASED MAKER OF UNDERWEAR AND MENSWEAR SAID NET TOTALED 11 MILLION OR SIX CENTS A SHARE DOWN FROM 73 MILLION OR 36 CENTS A SHARE A YEAR EARLIER THE QUARTER ENDED JAN 8 INCLUDED A 186 MILLION PREVIOUSLY ANNOUNCED CHARGE RELATED TO A LOAN REFINANCING THE YEARAGO QUARTER INCLUDED A CHARGE OF 74 MILLION REVENUE IN THE PERIOD ROSE 10 TO 2047 MILLION FROM 1851 MILLION FOR ALL OF FISCAL 1994 NET WAS 241 MILLION OR 121 A SHARE COMPARED WITH A LOSS OF 202 MILLION OR 106 A SHARE A YEAR EARLIER THE FIGURE IN BOTH YEARS WAS AFFECTED BY ONETIME CHARGES FISCAL 1994 REVENUE TOTALED 7038 MILLION UP 13 FROM 6251 MILLION A YEAR BEFORE 9402240088 940224 TECHNOLOGY & SCIENCE CURTAILING CARE FOR THE DYING SAVES LESS MONEY THAN BELIEVED REPORT SAYS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW REPORT CHALLENGES THE POPULAR BELIEF THAT THE US CAN REAP ENORMOUS SAVINGS IN HEALTHCARE COSTS BY CURTAILING AGGRESSIVE HIGHTECHNOLOGY TREATMENT FOR DYING PATIENTS RESEARCHERS AT DANAFARBER CANCER INSTITUTE AND HARVARD MEDICAL SCHOOL IN BOSTON ESTIMATED THAT REDUCING LIFESUSTAINING CARE FOR THE TERMINALLY ILL WOULD CUT HEALTH COSTS BY 33 AT MOST OR ABOUT 30 BILLION IN 1993 THAT IS UNDER THE MOST WILDLY OPTIMISTIC BESTCASE SCENARIO SAID EZEKIEL J EMANUEL A CANCER SPECIALIST AND MEDICAL ETHICIST THAT BESTCASE SCENARIO WOULD BE IMPOSSIBLE TO REALIZE EVEN IF IT WERE HE ADDED THE SAVINGS WOULD BE FAR LESS THAN OTHER PUBLISHED PROJECTIONS OF MORE THAN 100 BILLION IN POTENTIAL SAVINGS THROUGH ELIMINATION OF FUTILE ENDOFLIFE CARE WE MUST STOP DELUDING OURSELVES THAT LESS AGGRESSIVE CARE AT THE END OF LIFE WILL SOLVE THE FINANCIAL PROBLEMS OF OUR HEALTHCARE SYSTEM SAID DR EMANUEL AND HIS WIFE LINDA L EMANUEL WHOSE REPORT APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE STEVEN A SCHROEDER PRESIDENT OF THE ROBERT WOOD JOHNSON FOUNDATION A PRINCETON NJ PHILANTHROPY DIDN'T DISPUTE THE ECONOMIC FINDINGS OF THE REPORT BUT SAID THE RESEARCHERS FAILED TO CONSIDER SOME ISSUES THAT COULD HELP TO CONTROL US HEALTH COSTS FOR INSTANCE HE SAID REDUCED USE OF HOSPITAL BEDS AND INTENSIVECARE UNITS FOR THE TERMINALLY ILL COULD SPEED UP THE CLOSING OF EXCESS HOSPITAL CAPACITY AN IMPORTANT COMPONENT OF HEALTH EXPENDITURES DR SCHROEDER ADDED THAT 30 BILLION A YEAR IN SAVINGS COULD GO A LONG WAY TOWARD COVERING THE NATION'S 39 MILLION UNINSURED PEOPLE IN ANY EVENT THE COMBINATION OF TECHNOLOGICAL ADVANCES AND SOARING COSTS HAS DRAWN A SPOTLIGHT IN RECENT YEARS TO WHAT MANY DOCTORS POLICY ANALYSTS AND PATIENTS CONSIDER COSTLY FRUITLESS EFFORTS TO PROLONG LIFE FOR THE DYING THE CONCERN HAS PROMPTED GROWING USE ON BOTH ECONOMIC AND ETHICAL GROUNDS OF DO NOT RESUSCITATE ORDERS ON PATIENT CHARTS AND ADVANCED DIRECTIVES IN WHICH PATIENTS GIVE WRITTEN NOTICE OF THEIR PREFERENCES FOR TREATMENT SHOULD THEY BECOME INCAPACITATED IN ADDITION MANY TERMINALLY ILL PATIENTS NOW CHOOSE HOSPICE SERVICES WHERE INSTEAD OF AGGRESSIVE MEDICAL INTERVENTIONS THEY RECEIVE PALLIATIVE CARE TO MINIMIZE PAIN AND DISCOMFORT THE EMANUELS ADVOCATE SUCH APPROACHES AS GOOD MEDICINE BUT THEY SAID WHAT THEY CONSIDER UNREALISTIC HOPES FOR SAVINGS ARE BASED ON AMONG OTHER THINGS FAULTY EXTRAPOLATIONS OF FEDERAL MEDICARE DATA UNDERESTIMATES OF THE COSTS OF PROVIDING LESS AGGRESSIVE CARE AND THE DIFFICULTY DOCTORS AND PATIENTS HAVE IN DETERMINING WHEN TREATMENT CROSSES THE LINE FROM POTENTIALLY BENEFICIAL TO FUTILE THE RESEARCHERS BASED THEIR ESTIMATES ON DATA INDICATING THAT AMERICANS 65 AND OLDER WHO DIED IN 1988 SPENT 29295 FOR ALL HEALTHCARE SERVICES THAT YEAR AND THOSE UNDER 65 WHO DIED SPENT 34102 THEN THEY REDUCED THOSE FIGURES BY 27 BASED ON A STUDY THAT SHOWED HOSPICE CARE DURING THE LAST SIX MONTHS OF LIFE COST 27 LESS THAN CONVENTIONAL CARE FOR THE 217 MILLION AMERICANS WHO DIED IN 1988 INCLUDING 149 MILLION MEDICARE PATIENTS THE TOTAL POTENTIAL SAVINGS FROM LESS AGGRESSIVE CARE WOULD HAVE AMOUNTED TO 181 BILLION THEY CONCLUDED OR 33 OF NATIONAL HEALTHCARE EXPENDITURES THAT YEAR THE US GOVERNMENT ESTIMATES THAT THE NATION WILL SPEND ABOUT 1 TRILLION FOR HEALTH CARE IN 1994 33 WOULD AMOUNT TO ABOUT 33 BILLION 9402240087 940224 COMMODITIES PLATINUM FUTURES DROP ON HINT OF RUSSIAN SALES AS FALLOUT CONTINUES FROM GREENSPAN REMARKS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PLATINUM FUTURES PRICES FELL ON THE PROSPECT OF PLATINUM SALES BY RUSSIA AND CONTINUING FALLOUT FROM REMARKS MADE TUESDAY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ANALYSTS SAID AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY WAS DOWN 590 TO 39120 AN OUNCE MEANWHILE AT NEW YORK'S COMMODITY EXCHANGE THE APRIL GOLD FUTURES CONTRACT FELL 30 CENTS TO 37890 AN OUNCE REPORTS THAT RUSSIA'S BUDGET GAP IS MUCH LARGER THAN EXPECTED AND RUSSIAN CENTRAL BANK CHIEF VIKTOR GERASHCHENKO'S STATEMENT THAT RUSSIA MAY BE COMPELLED TO SELL GOLD TO CLOSE IT WAS INTERPRETED YESTERDAY AS AN INDICATION THAT RUSSIA MAY ALSO SELL PLATINUM IN RECENT YEARS HEAVY SALES OF PLATINUM BY RUSSIA HAVE EXERTED STRONG DOWNWARD PRESSURE ON PRICES THE REPORT SPAWNED SELLING OF PLATINUM FUTURES CONTRACTS BY INVESTORS LARGE AND SMALL INCLUDING COMMODITY FUNDS THE MANAGED POOLS OF INVESTOR MONEY THAT TRADE WHEN PRICES FALL THROUGH LEVELS REGARDED AS SIGNIFICANT THESE TECHNICAL FACTORS TOOK OVER AS WE DROPPED BELOW 395 AN OUNCE IN THE ACTIVE APRIL PLATINUM CONTRACT SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC THE PRICE OF GOLD ALSO FELL EARLY YESTERDAY LARGELY ON CONTINUING WORRIES ABOUT STATEMENTS TUESDAY BY MR GREENSPAN THAT GOLD IS A GOOD INDICATOR OF INFLATION AND THAT THE FED WILL CONTINUE TO RAISE INTEREST RATES WHEN IT PERCEIVES INFLATION AS A THREAT I DON'T THINK HIS COMMENTS SHOULD BE VIEWED AS INDICATING ANY EFFORT BY THE FED OR OTHER CENTRAL BANKS TO KEEP THE PRICE OF GOLD DOWN SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I THINK HE WAS JUST POINTING OUT A DEVICE USED BY THE FED TO MONITOR INFLATION YESTERDAY AFTERNOON GOLD'S PRICE RALLIED AFTER FALLING AS LOW AS 37570 AN OUNCE EARLIER IN THE SESSION MR O'NEILL NEVERTHELESS THINKS PRICES MAY CONTINUE TO ERODE IN THE NEAR FUTURE THE DEARTH OF ASIAN DEMAND RECENTLY HAS BEEN A MAJOR REASON WHY GOLD HAS BEEN UNABLE TO SUSTAIN ITS RALLY HE SAID THE SHORTTERM PICTURE LOOKS SLOPPY PRICES COULD TAPER OFF A BIT IN OTHER COMMODITY MARKETS YESTERDAY COPPER COPPER FUTURES PRICES FELL ON SPECULATION THAT RECENTLY STRONG PHYSICAL DEMAND FOR COPPER MAY HAVE PEAKED AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR APRIL DELIVERY WAS DOWN 30 CENT TO 8620 A POUND ON TUESDAY THE PRICE OF THE NEARTERM MARCH FUTURES CONTRACT FELL BELOW THAT OF FARTHERTERM CONTRACTS WHICH IS AN INDICATION OF DIMINISHING DEMAND FOR COPPER IN THE NEAR TERM TALK OF RAISING INTEREST RATES BY MR GREENSPAN HAS ALSO MADE THE COPPER MARKET JITTERY ANALYSTS SAID ENERGY APRIL CRUDE OIL FUTURES GAINED JUST 2 CENTS A BARREL IN A HOHUM TRADING SESSION ON THE NEW YORK MERCANTILE EXCHANGE TRADERS WERE APPARENTLY HOLDING BACK TO SEE WHAT THE WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE MIGHT HOLD THAT REPORT WAS DELAYED UNTIL LATE YESTERDAY FROM THE USUAL TUESDAY RELEASE BECAUSE OF THE PRESIDENTS DAY HOLIDAY AFTER THE LACKLUSTER TRADING DAY APRIL CRUDE SETTLED AT 1441 A BARREL THERE WAS LITTLE NEWS AFFECTING FUNDAMENTALS TO LEND ANY DIRECTION TO TRADING HEATING OIL FINISHED HIGHER ON WEATHERRELATED TRADING GASOLINE FUTURES WERE WEAK 9402240086 940224 CLINTON AIDES POSE STRICTER FOREST PLAN CITING EFFECT ON NORTHWEST'S SPOTTED OWL BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CITING NEW EVIDENCE OF SPOTTEDOWL DECLINES CLINTON ADMINISTRATION OFFICIALS TIGHTENED THEIR PLAN FOR PRESERVING NORTHWEST TIMBERLANDS THE NEWEST VERSION OF THE ADMINISTRATION'S FORESTMANAGEMENT PLAN SPELLED OUT IN AN ENVIRONMENTAL IMPACT STATEMENT PREPARED BY SIX AGENCIES COULD UNDERGO MORE CHANGES BEFORE FINAL RECOMMENDATIONS ARE MADE TO FEDERAL JUDGE WILLIAM DWYER IN SEATTLE AT THE END OF MARCH BUT ALREADY THE DOCUMENT RELEASED YESTERDAY REFLECTED SOME MODIFICATIONS URGED BY ENVIRONMENTAL GROUPS AND OTHERS THE GOVERNMENT RECEIVED 110000 LETTERS COMMENTING ON A DRAFT ISSUED LAST SUMMER THE NEW PLAN CALLS FOR LESS LOGGING ON FEDERAL FOREST LANDS THAN THE EARLIER VERSION IT PROJECTS A TIMBER HARVEST OF 11 BILLION BOARD FEET OVER THE NEXT 10 YEARS DOWN FROM THE 12 BILLION BOARD FEET ESTIMATED IN THE EARLIER DRAFT EITHER AMOUNT WOULD BE WELL BELOW THE LOGGING TOTAL FOR THE 1980S SINCE THE FEDERAL GOVERNMENT DECLARED THE SPOTTED OWL THREATENED IN 1990 COURTS HAVE PUT MILLIONS OF ACRES OF NORTHWEST FOREST OFF LIMITS TO LOGGING THE LATEST VERSION WOULD PROVIDE ADDED PROTECTION FOR A NUMBER OF WILDLIFE SPECIES SAID TOM TUCKMANN DIRECTOR OF THE INTERAGENCY OFFICE OF FORESTRY AND ECONOMIC DEVELOPMENT AT A NEWS CONFERENCE IN PORTLAND ORE HE SAID GOVERNMENT AGENCIES THINK THE PLAN WILL PASS LEGAL MUSTER UNDER WHAT IS LIKELY TO BE A CONTINUED ONSLAUGHT OF LAWSUITS FROM BOTH ENVIRONMENTAL AND TIMBERCUTTING INTERESTS IT'S PROGRESS SAID JULIA REITAN A SIERRA CLUB TIMBER SPECIALIST IN SEATTLE BUT IT'S NOT YET CLEAR WHETHER IT'S ENOUGH PROGRESS TO SAVE THESE ECOSYSTEMS SOME ENVIRONMENTAL GROUPS STILL INSIST ON INVIOLABLE NOCUT ZONES IN OLDGROWTH TIMBER AREAS AND THE PLAN DOESN'T GIVE THEM THAT ANDY KERR HEAD OF THE OREGON NATURAL RESOURCES COUNCIL A PORTLANDBASED GRASSROOTS ENVIRONMENTAL GROUP SAID I THINK LITIGATION IS LIKELY UNLESS THE PLAN IS BOLSTERED BY ADDITIONAL FORESTPROTECTION PROVISIONS BUT THE PLAN GOES TOO FAR FOR MIKE DRAPER EXECUTIVE SECRETARY OF THE WESTERN COUNCIL OF INDUSTRIAL WORKERS A UNION OF TIMBER AND OTHER WORKERS THE CLINTON ADMINISTRATION PLAN WOULD ALLOW CUTTING OF ONLY A FOURTH OF THE TIMBER THAT WAS HISTORICALLY PRODUCED HE SAID THE REDUCTION OF 100 MILLION BOARD FEET ANNUALLY FROM THE 1993 PLAN WOULD MEAN THE LOSS OF MORE JOBS IN A REGION ALREADY SUFFERING FROM MASSIVE UNEMPLOYMENT DUE TO HARVEST RESTRICTIONS MR DRAPER SAID THE REVISED PLAN TAKES ACCOUNT OF STUDIES OF NEW FOREST AREAS THAT WEREN'T ANALYZED BEFORE SHOWING THAT LOGGING HAS HAD A GREATER IMPACT ON THE SPOTTED OWL THAN HAD BEEN REALIZED OFFICIALS SAID IN THE EIGHT YEARS STUDIED THE OWL POPULATION DECLINED AN AVERAGE 15 A YEAR THEY SAID THE NEW PLAN WOULD PROTECT MORE SPOTTEDOWL HABITATS AND OWL ACTIVITY CENTERS THE PLAN ALSO CALLS FOR EXPANDING NOLOGGING BUFFER ZONES ALONG STREAMS TO PROTECT SALMON AND OTHER FISH FROM EROSION AND TIMBER DEBRIS ENVIRONMENTALISTS HAVE DEMANDED SUCH AN EXPANSION BUT TIMBER INTERESTS OPPOSE IT CHARLES MCCOY IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9402240085 940224 INTERNATIONAL BRITISH AEROSPACE NARROWED PRETAX LOSS IN 1993 AMID CONSIDERABLE REVAMPING BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH AEROSPACE PLC NARROWED ITS PRETAX LOSS TO 237 MILLION 351 MILLION FOR 1993 A YEAR IN WHICH THE COMPANY REFOCUSED ITS ATTENTION ON BUILDING MILITARY AND CIVIL AIRCRAFT ALTHOUGH ANALYSTS HAD EXPECTED AN EVEN SMALLER PRETAX LOSS OF ABOUT 180 MILLION THE RESULTS NONETHELESS MARK A MAJOR IMPROVEMENT FROM THE PREVIOUS YEAR'S PRETAX LOSS OF 12 BILLION BRITISH AEROSPACE SHARES ROSE SHARPLY IMMEDIATELY AFTER THE ANNOUNCEMENT THE STOCK REACHED 572 PENCE 846 DURING YESTERDAY'S TRADING BEFORE CLOSING AT 548 PENCE UP FROM 539 PENCE A DAY EARLIER OUTLOOK FOR 1994 THE IMPROVEMENT CAME IN A YEAR OF CONSIDERABLE RESTRUCTURING AT THE COMPANY PAVING THE WAY FOR WHAT IS WIDELY EXPECTED TO BE A RETURN TO PROFIT IN THE CURRENT YEAR IN A STATEMENT OUTGOING CHAIRMAN JOHN CAHILL EMPHASIZED THOSE CHANGES WHICH INCLUDED THE COMPANY'S DEPARTURE FROM THE AUTOMOBILE CONSTRUCTION AND CORPORATE JET BUSINESSES THE PAST 12 MONTHS HAVE SEEN REAL PROGRESS TOWARD THE BOARD'S GOAL OF FOCUSING THE BUSINESS OF BRITISH AEROSPACE ON ITS STRENGTHS IN DEFENSE AND AEROSPACE MR CAHILL SAID MR CAHILL WILL BE SUCCEEDED IN APRIL BY ROBERT BAUMAN CURRENT SMITHKLINE BEECHAM PLC CHIEF EXECUTIVE OFFICER THE BIGGEST SINGLE FACTOR KEEPING THE COMPANY IN THE RED FOR THE THIRD STRAIGHT YEAR WAS A PREVIOUSLY ANNOUNCED 250 MILLION PROVISION FOR RESTRUCTURING THE TURBOPROP DIVISION IN THE YEAREARLIER PERIOD BRITISH AEROSPACE TOOK A 1 BILLION CHARGE FOR RESTRUCTURING AT ITS REGIONAL JETLINER DIVISION THE 1993 RESULTS ALSO HAD TWO EXCEPTIONAL ITEMS THAT SURPRISED ANALYSTS ONE WAS A CHARGE OF 38 MILLION FOR WRITING OFF GOODWILL FROM THE SALE OF THE GROUP'S CONSTRUCTION OPERATIONS AN ACCOUNTING ACT THAT ANALYSTS SAID WOULDN'T AFFECT THE COMPANY'S CASH POSITION THE OTHER SURPRISE WAS THE CONSPICUOUS ABSENCE OF ANY EXCEPTIONAL BENEFIT FROM THE SALE OF THE CORPORATE JET BUSINESS TO RAYTHEON CO WHILE THE TWO COMPANIES COMPLETE THEIR AGREEMENT BUT IN ITS DESIRE TO KEEP INVESTOR CONFIDENCE HIGH AS THE COMPANY ENGINEERS A TURNAROUND BRITISH AEROSPACE WILL INCREASE ITS FULLYEAR DIVIDEND TO 83 PENCE A SHARE FOR 1993 FROM SEVEN PENCE IN 1992 ANALYSTS HAD EXPECTED THE COMPANY TO RAISE THE DIVIDEND TO JUST EIGHT PENCE THE MOVE APPEARED TO WORK PEOPLE HAVE TAKEN SOME ENCOURAGEMENT FROM THAT SAID LEHMAN BROTHERS INTERNATIONAL'S KEITH HODGKINSON IN HIS STATEMENT MR CAHILL ALSO CITED THE RECENTLY COMPLETED SALE OF THE ROVER AUTOMOBILES UNIT FOR 800 MILLION AS THE BEST EVIDENCE OF OUR DETERMINATION TO FOCUS ON BUSINESSES OFFERING STRONG POSITIONS IN INTERNATIONAL MARKETS AND ATTRACTIVE CASH FLOW BUT THE PROCEEDS FROM THE SALE TO BAYERISCHE MOTOREN WERKE AG WON'T SHOW UP ON BRITISH AEROSPACE'S BALANCE SHEET UNTIL THE CURRENT YEAR'S FIGURES ARE REPORTED ALSO FUELING INVESTOR CONFIDENCE WAS THE NEWS THAT BRITISH AEROSPACE MANAGED TO EARN A PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS OF 71 MILLION THAT COMPARES WITH A LOSS OF 186 MILLION ON THE SAME BASIS IN THE PREVIOUS YEAR 9402240084 940224 BUSINESS BRIEF AH BELO CORP COMPANY HAS AGREEMENT TO BUY ASSETS OF WWLTV AH BELO CORP SAID IT AGREED IN PRINCIPLE TO ACQUIRE THE ASSETS OF WWLTV THE CBS INC AFFILIATE IN NEW ORLEANS FROM RAMPART OPERATING PARTNERSHIP A CLOSELY HELD LOUISIANA PARTNERSHIP FOR 110 MILLION IN CASH THE SALE IS SUBJECT TO EXECUTION OF A DEFINITIVE PURCHASE AGREEMENT AND APPROVALS BY THE APPROPRIATE FEDERAL AGENCIES THE MEDIA CONCERN SAID THE AGREEMENT IN PRINCIPLE HAS ALREADY BEEN APPROVED BY THE BELO BOARD AND THE PRINCIPALS OF RAMPART THE COMPANY SAID A BELO SPOKESMAN SAID THAT HE COULDN'T ESTIMATE WHEN THE TRANSACTION MIGHT BE COMPLETED BELO WHICH IS BASED IN DALLAS AND ALSO PUBLISHES NEWSPAPERS ALREADY OWNS NETWORKAFFILIATED TELEVISION STATIONS IN DALLAS HOUSTON SACRAMENTO CALIF HAMPTONNORFOLK VA AND TULSA OKLA IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BELO CLOSED AT 52875 UP 625 CENTS 9402240083 940224 FINANCING BUSINESS CLARK EQUIPMENT CO CLARK EQUIPMENT CO SOUTH BEND IND THE HEAVYEQUIPMENT MAKER SAID ITS BRAZILIAN AUTOMOTIVE SUBSIDIARY PLANS TO GO PUBLIC THROUGH AN INITIAL OFFERING VALUED AT UP TO 170 MILLION THE COMPANY'S CLARK AUTOMOTIVE PRODUCTS UNIT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING A PLANNED OFFERING OF 10 MILLION SHARES OF THOSE CLARK WILL SELL 9174194 SHARES AND CLARK AUTOMOTIVE WILL SELL 825806 SHARES WHILE ITS OPERATIONS ARE IN CAMPINAS BRAZIL CLARK AUTOMOTIVE IS INCORPORATED IN MICHIGAN AND HAS HEADQUARTERS IN SOUTH BEND THE OFFERING WITH AN ESTIMATED PRICE RANGE OF FROM 14 TO 17 A SHARE WILL BE MANAGED BY CS FIRST BOSTON CORP THE UNIT MAKES MANUAL TRANSMISSIONS AND RELATED AFTERMARKET PARTS FOR SALE IN BRAZIL AND THE US IT HAD 1993 SALES OF 1843 MILLION CLARK SAID AND HAD AFTERTAX EARNINGS OF 121 MILLION THE UNDERWRITERS HAVE BEEN GRANTED AN OVERALLOTMENT OPTION OF ONE MILLION SHARES CLARK SAID AFTER THE SALE CLARK EQUIPMENT WILL HOLD AT MAXIMUM A 10 STAKE IN THE BRAZILIAN UNIT IF THE OVERALLOTMENT OPTION IS EXERCISED IN FULL THE PARENT'S STAKE WOULD DROP TO ZERO A SPOKESMAN SAID 9402240082 940224 DIVIDEND NEWS PHILIP MORRIS RAISES QUARTERLY DIVIDEND BUYBACK TO RESUME NEW YORK PHILIP MORRIS COS INCREASED ITS QUARTERLY DIVIDEND BY 62 TO 69 CENTS A SHARE FROM 65 CENTS THE COMPANY ALSO SAID IT PLANNED TO RESUME ITS SHAREREPURCHASE PLAN WHICH HAD BEEN SUSPENDED SINCE THE FIRST QUARTER OF LAST YEAR PHILIP MORRIS SHARES ROSE 625 CENTS TO CLOSE AT 58875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN A DOWN MARKET ON THE NEWS THAT THE COMPANY WOULD ONCE AGAIN START BUYING ITS SHARES PHILIP MORRIS STOPPED BUYING BACK ITS SHARES LAST YEAR BECAUSE OF THE COSTLY DOMESTIC TOBACCO INDUSTRY PRICE WAR AS A RESULT THE COMPANY HAS 12 BILLION REMAINING IN ITS ORIGINAL STOCKREPURCHASE AUTHORITY THE COMPANY EXTENDED THROUGH THE END OF 1994 ITS EXISTING AUTHORITY TO REPURCHASE STOCK WHICH HAD BEEN SET TO EXPIRE IN MAY WALL STREET ANALYSTS SAID PHILIP MORRIS IS LIKELY TO ANNOUNCE A NEW SHAREREPURCHASE PROGRAM LATER IN THE YEAR SINCE 1992 THE COMPANY HAS PURCHASED 52 MILLION SHARES FOR A TOTAL OF 29 BILLION WITH THE STABILIZATION OF PRICES IN THE DOMESTIC TOBACCO INDUSTRY PHILIP MORRIS'S DIVIDEND INCREASE WAS EXPECTED THE DIVIDEND INCREASE GIVES PHILIP MORRIS STOCK A YIELD OF 47 LAST YEAR BECAUSE OF THE TOBACCO TURMOIL PHILIP MORRIS FAILED TO RAISE ITS DIVIDEND FOR THE FIRST TIME SINCE 1967 9402240081 940224 NABISCO'S MIDDLE EAST PURCHASE NEW YORK RJR NABISCO HOLDINGS CORP SAID IT ACQUIRED ROYAL FOOD PRODUCTS SA A LEADING REGIONAL PRODUCER OF DRY MIXES IN TUNISIA TERMS WEREN'T DISCLOSED THE ACQUISITION MARKS NABISCO'S FIRST MIDDLE EASTERN ACQUISITION IN JUNE THE COMPANY OPENED A SALES OFFICE IN DUBAI UNITED ARAB EMIRATES TO DIRECT ITS GROWING SALES OF US EXPORTS IN THE REGION THE ACQUISITION GIVES NABISCO INTERNATIONAL A MANUFACTURING ENTRY INTO AN IMPORTANT REGION WITH OUTSTANDING GROWTH POTENTIAL SAID HF JAKE POWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NABISCO INTERNATIONAL A UNIT OF RJR NABISCO FOUNDED IN 1976 ROYAL FOOD PRODUCES A RANGE OF DRY MIXES THAT ARE EXPORTED THROUGHOUT THE MIDDLE EAST AND NORTHERN AFRICA 9402240080 940224 INTERNATIONAL HONDA MAY CONSTRUCT A CAR PLANT IN MEXICO SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S HONDA MOTOR CO HAS BEEN UNDERTAKING A FEASIBILITY STUDY TO SET UP AN ASSEMBLY PLANT FOR VEHICLES IN MEXICO A HONDA SPOKESMAN SAID THOUGH NO DEFINITIVE DECISION HAS BEEN MADE FOR CONSTRUCTION OF A CAR PLANT HONDA WHICH ALREADY HAS A MOTORCYCLE AND A REPAIRPARTS PLANT IN MEXICO SEES THE COUNTRY AS A MARKET WITH A HIGH POTENTIAL FOR ITS AUTOMOBILES HE SAID AMONG JAPANESE AUTO MAKERS NISSAN MOTOR CO IS THE ONLY COMPANY THAT HAS A VEHICLEASSEMBLY PLANT IN MEXICO SEPARATELY MOODY'S INVESTORS SERVICE INC AFFIRMED ITS PRIME1 RATINGS OF SHORTTERM DEBT OF HONDA MOTOR AND TWO OF ITS OVERSEAS FINANCIAL ARMS BUT DOWNGRADED SENIOR UNSECURED DEBT OF THE COMPANY IN JAPAN AND THE TWO OVERSEAS UNITS TO SINGLEA2 FROM SINGLEA1 IN ANNOUNCING THE ACTION ON 36 BILLION OF DEBT OF THE PARENT AND OF HONDA INTERNATIONAL FINANCE BV AND AMERICAN HONDA FINANCE CORP MOODY'S CITED ITS BELIEF THAT HONDA'S EARNINGS AND DEBTPROTECTION MEASUREMENTS WILL CONTINUE TO BE ADVERSELY AFFECTED BY BUSINESS WEAKNESS IN JAPAN DECLINE IN EFFICIENCY IN THE COMPANY'S PLANTS THERE AND COMPETITION IN NORTH AMERICAN AND EUROPEAN MARKETS 9402240079 940224 HERTZ INCREASES RATES AUTORENTAL RIVALS ARE STUDYING MOVE CAR RENTAL RATES ARE GOING UP AGAIN INDUSTRY LEADER HERTZ CORP SAID IT'S RAISING PRICES ON WEEKLY RATES 10 TO 30 A 6 TO 18 INCREASE DAILY RENTALS ARE RISING BY UP TO 5 OR 15 AVIS INC SAID IT HAS ALREADY RAISED RATES IN CERTAIN MARKETS AND WILL EVALUATE HERTZ'S MOVE A SPOKESMAN FOR NATIONAL CAR RENTAL SYSTEM INC A UNIT OF GENERAL MOTORS CORP SAID EVERYONE IS TRYING TO TAKE RATES UP AND WE PROBABLY WILL TOO THE LATEST PRICE ACTION REFLECTS A TWOYEAR TREND OF RENTAL COMPANIES' TRYING TO PUSH UP PRICES IN RESPONSE TO HIGHER COSTS FROM AUTO MANUFACTURERS FOR '94 MODELS THE INCREASE IN COSTS IS 30 ACCORDING TO RENTAL COMPANY OFFICIALS FOR YEARS RATES WERE FLAT BECAUSE CAR MAKERS SUFFERING FROM EXCESS INVENTORY SUBSIDIZED CAR RENTAL COMPANIES TO BUY THEIR SURPLUS AUTOS BUT AS DETROIT'S OVERCAPACITY PROBLEMS HAVE ABATED THE CAR RENTAL SUBSIDIES HAVE DISAPPEARED AND RENTAL RATES HAVE RISEN FORTUNATELY FOR CONSUMERS COMPETITIVE PRESSURES KEEP PRICES FROM RISING TOO STEEPLY IN SEPTEMBER AS '94 MODELS CAME ONTO THE LOTS RENTAL COMPANIES TRIED TO RAISE RATES BY 12 BUT THE INCREASE SETTLED AT 5 THE CURRENT HERTZLED INCREASE FIRST DISCLOSED IN USA TODAY COMES AS RENTAL COMPANIES BRING ON BOARD THEIR SECOND WAVE OF '94 CARS THOSE NEW CARS ARE COMING IN AND WE BELIEVE RATES NEED TO GO UP OVERALL SAID AN AVIS SPOKESWOMAN IT'S A MATTER OF SURVIVAL 9402240078 940224 LEISURE & ARTS TV LOVESICK INSPECTOR EARLY MAN TWO TYPES OF TRAIN BY DOROTHY RABINOWITZ INSPECTOR MORSE OF THE OXFORD POLICE RETURNS TO MYSTERY IN THIS TWOPARTER ABOUT AN APPARENT SUICIDE THAT SOON COMES TO LOOK MORE AND MORE LIKE MURDER THAT'S NOT ALL FOR THIS IS THE SEASON IN WHICH PASSION BLOOMS HOWEVER BRIEFLY IN THE LIVES OF VARIOUS ASCETIC POLICEINSPECTORS PEOPLING THE PUBLICTV SCREEN FIRST IT WAS INSPECTOR DALGLIESH AND NOW IT IS INSPECTOR MORSE WHO HAS FOUND LOVE CALLED TO THE SCENE OF THE ALLEGED SUICIDE MORSE COMMENCES TO FALL ALL OVER AGAIN FOR A WOMAN HE WAS ONCE ENGAGED TO MARRY AND WHO TURNS OUT TO BE THE VICTIM'S WIFE ALL OF THIS WORKS ITSELF INTO A FINE DRAMATIC BREW THANKS TO A SHARP SCRIPT BY DANIEL BOYLE TO SAY NOTHING OF THE RICHES OF JOHN THAW'S PERFORMANCE AS THE CHIEF INSPECTOR WHOSE MIND HAS BECOME ADDLED BY ROMANCE COURT TV'S TRIAL STORY SERIES REPORTS ON A SEXDISCRIMINATION SUIT FILED AGAINST GOLDMAN SACHS & CO BY JOANNE FLYNN A VICE PRESIDENT IN CHARGE OF SALES TRAINING MS FLYNN CONTENDED SHE WAS REFUSED A PROMOTION AND DISMISSED BECAUSE SHE WAS A WOMAN WHILE GOLDMAN SACHS MAINTAINED THAT THE PLAINTIFF'S PROBLEM WAS HER INABILITY TO GET ON WITH OTHERS IN PARTICULAR THE WOMAN BOSS WHO FIRED HER A FASCINATING CASE NEATLY PACKAGED BY COURT TV AND ONE WHOSE OUTCOME IS THE BEST PART OF THE STORY NOVA PRESENTS A THREEPART MINISERIES ON OUR EARLIEST ANCESTORS BEGINNING WITH THE DISCOVERY OF THE LUCY FOSSILS IN 1974 LUCY'S DISCOVERER PALEOANTHROPOLOGIST DONALD C JOHANSON IS THE HOST OF THIS SPLENDID SERIES IF ONE NOT WITHOUT FLAWS REPETITION PRIME AMONG THEM IT'S HARD TO KEEP TRACK OF THE NUMBER OF TIMES MR JOHANSON RHETORICALLY ASKS SO HOW DID WE GET FROM OUR PRIMITIVE ANCESTORS TO MODERN LIFE FOLLOWING WHICH WE ARE INFORMED THAT THE ANSWER IS NOT SO EASY THE SOMEWHAT FLACCID FOCUS ASIDE THESE ARE THREE RIVETING HOURS NO DOUBT ABOUT IT NOT LEAST THE LAST ON THE LIFE AND TIMES OF THE LIVELY NEANDERTHALS THE SUBJECT OF THIS TALE OF ENDURANCE IS DENNIS BYRD THE NEW YORK JETS DEFENSIVE END WHO SUFFERED A NECKSHATTERING INJURY THAT PARALYZED HIM IT ISN'T EASY TO SAY EXACTLY WHY THIS MADEFORTV FILM SEEMS SUPERIOR TO SO MANY SIMILAR SAGAS OF GRIT AND TRIUMPH THAT HIT THE SCREEN IT IS NONETHELESS A FACT THAT THIS IMMENSELY WATCHABLE FILM SOMEHOW MANAGES DESPITE A HOPELESSLY PREDICTABLE STORY LINE TO SUSTAIN ITS DRAMA TO THE END THIS IS IN NO SMALL PART DUE TO AN ENTERPRISING SCRIPT ONE ENTERPRISING ENOUGH ANYWAY TO HAVE PAID SOME ATTENTION TO THE DELIVERY OF SOCIAL DETAIL ON THE HERO'S BACKGROUND AND TO PETER BERG WHO PORTRAYS MR BYRD WITH STYLE THIS FOURPART SERIES ON TRAINS AND THE COMING OF RAIL TRAVEL AN A&EBBC PRODUCTION ENCOMPASSES SOMETHING LIKE A SHORT HISTORY OF THE MODERN WORLD THE FIRST HOUR DEALS WITH THE RAILWAY INDUSTRY IN ITS POSTCIVIL WAR BOOM PERIOD WHEN SPECULATORS SOLD RAILWAY STOCK ON WALL STREET LITERALLY ON THE STREET THAT IS THE THIRD AND PERHAPS MOST FASCINATING HOUR CHRONICLES THE WAYS IN WHICH THE RAILWAYS TRANSFORMED THE TRANSPORTATION OF ARMIES AND THE CONDUCT OF WARS GENERALLY COMPELLING STUFF MEREDITH BAXTER HAS THE ROLE OF A PIONEER WOMAN IN THIS FILM BASED ON THE STORY OF MARGARET REED WHO SET OUT IN 1846 ALONG WITH HER HUSBAND AND CHILDREN AND FOR A TIME THE ILLFATED DONNER PARTY AS MEMBERS OF A WAGON TRAIN FOLLOWING THE EMIGRANT TRAIL TO CALIFORNIA AS MS BAXTER PORTRAYS HER INTREPIDLY ENOUGH MARGARET REED IS A WELLTODO WOMAN ACCUSTOMED TO THE FINER THINGS OF LIFE WHO LEARNS ON THE TRAIL TO BOIL ANIMAL SKINS FOR FOOD AND TO IGNORE HER CHRONIC HEADACHES HER HUSBAND IS BANISHED BY THE OTHERS FOR HAVING KILLED A FELLOW PIONEER LEAVING MARGARET AND HER CHILDREN TO TRAVEL WITHOUT HIM WITH WHAT IS LEFT OF THE TRAIN ENDURING SNOW COLD AND STARVATION AS THE WINTER STORMS CLOSE THE MOUNTAIN PASSES SUCH HISTORY AND DRAMA NOTWITHSTANDING THE SCRIPT THROBS WITH A DULL SIMPLICITY A FACT THAT MAY ACCOUNT FOR THE PERVASIVE FLATNESS OF THIS FILM SHOT ON LOCATION IN CALGARY 9402240077 940224 BELL ATLANTIC'S PACT TO ACQUIRE TCI COLLAPSES AMID DISPUTE OVER PRICE MERGER TALKS BY OTHER FIRMS MAY FEEL CHILL BY WALL STREET JOURNAL REPORTERS MARK ROBICHAUX JOHNNIE L ROBERTS AND BART ZIEGLER NEW YORK THE COLLAPSE OF THE DEAL BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC IS LIKELY TO FORCE A REEVALUATION OF OTHER NEGOTIATIONS BETWEEN CABLE AND PHONE COMPANIES INDUSTRY EXECUTIVES CONCLUDED LAST NIGHT MORE THAN ANY OTHER DEAL THE BELL ATLANTICTCI PROPOSAL SET THE CLIMATE FOR THE FRENZIED TREND TOWARD CONVERGENCE OF THE ONETIME RIVAL INDUSTRIES ITS COLLAPSE LIKEWISE IS EXPECTED TO SEND A CHILL IF ONLY TEMPORARY ACROSS THE CONTINUING TALKS BETWEEN POTENTIAL PARTNERS WHO MUST GRAPPLE WITH THE COMPLEX MARKET AND REGULATORY ISSUES NOW FACING BOTH INDUSTRIES YET INDUSTRY OFFICIALS AND ADVISERS SAY THE TECHNOLOGICAL AND FINANCIAL FORCES THAT ARE PUSHING THE TWO INDUSTRIES TO MERGE ARE UNRELENTING THEY SAY THAT THE EXPENSE OF UPGRADING CABLE SYSTEMS INTO COMPUTERIZED INFORMATION HIGHWAYS NECESSITATES SUCH MERGERS AND THAT EACH INDUSTRY NEEDS THE OTHER'S EXPERTISE THE INEVITABLE THRUST OF THE INDUSTRIES WILL GO FORWARD SAID CHARLES F DOLAN CHAIRMAN OF CABLEVISION SYSTEMS CORP THE NATION'S FOURTHLARGEST CABLE OPERATOR THIS TECHNOLOGY WE HAVE AND THE SERVICES WE ARE PROVIDING HAVE PROGRESSED BEAUTIFULLY AN EXECUTIVE AT ONE OF THE BABY BELLS CONCURRED A LOT OF THE FUNDAMENTALS ARE STILL THERE THE CABLE INDUSTRY IS LOOKING FOR GREATER INSIGHTS INTO THE PHONE INDUSTRY AND THE PHONE INDUSTRY WANTS TO KNOW THE CABLE INDUSTRY BETTER STILL OFFICIALS IN BOTH INDUSTRIES AGREE THAT STRIKING A DEAL IN THE CURRENT REGULATORY ENVIRONMENT IS AN ENORMOUS CHALLENGE FOR ONE THING THE VALUE OF CABLE PROPERTIES HAS BEEN SHIFTING WITH SUCCESSIVE ROUNDS FROM WASHINGTON OF CABLE RATE CUTBACKS AND RESTRICTIONS ON RATE INCREASES LAST YEAR THE FEDERAL COMMUNICATIONS COMMISSION ORDERED A 10 RATE ROLLBACK FOLLOWED THIS WEEK BY AN ADDITIONAL 7 CUT MOREOVER ALL FUTURE RATE INCREASES ARE TIED TO INFLATION THE ACTIONS HAVE TAKEN A TOLL ON CABLE COMPANIES' FINANCES INCLUDING CASH FLOW THE CRUCIAL VARIABLE IN VALUING A CABLE COMPANY FOR A DEAL MOREOVER CABLE COMPANIES COMPLAIN THE HIT ON THEIR FINANCES HAMMERS THEIR ABILITY TO UPGRADE THEIR SYSTEMS INTO TWOWAY INFORMATION SUPERHIGHWAYS WHILE THE FCC STEPS UP ITS REGULATION OF CABLE OPERATORS CONGRESS IS CONSIDERING LEGISLATION THAT WOULD BREAK DOWN BARRIERS BETWEEN THE TWO INDUSTRIES THIS ADDS ANOTHER LEVEL OF UNCERTAINTY AS THE TWO INDUSTRIES EVALUATE POTENTIAL PARTNERS DON'T EVER LOSE SIGHT OF HOW IMPORTANT THE GOVERNMENT AND REGULATORS ARE TO THE ENTIRE EQUATION THE BABY BELL EXECUTIVE SAID LOOKING FORWARD AS CABLE AND TELEPHONE EXECUTIVES REEVALUATE THEIR POSITIONS PENDING DEALS MAY FALL SHORT OF AN OUTRIGHT MERGER OR SALE U S WEST INC'S 25 BILLION INVESTMENT IN TIME WARNER INC'S CABLE AND ENTERTAINMENT UNIT COULD PROVE TO BE A MODEL FOR DEALS TO COME WHILE BOTH PARTNERS MAINTAIN THEIR INDEPENDENCE THEY CAN MINE EACH OTHER'S EXPERTISE AS THEY BUILD INTERACTIVE COMMUNICATIONS SYSTEMS SEVERAL LARGE CABLE OPERATORS ARE BELIEVED TO BE IN THE MARKET FOR PARTNERS INCLUDING CABLEVISION SYSTEMS CONTINENTAL CABLEVISION INC TELECABLE CORP AND HOUSTON INDUSTRIES INC AMONG PHONE COMPANIES SPRINT CORP GTE CORP MCI COMMUNICATIONS CORP AMERITECH CORP AND PACIFIC TELESIS GROUP ARE WITHOUT CABLE PARTNERS AND BELIEVED TO BE LOOKING DESPITE YESTERDAY'S NEWS MUCH OF THE INDUSTRIES' FUTURE IS ALREADY SET LAST YEAR CABLE AND PHONE COMPANIES MADE DEALS AT A FURIOUS PACE IN ADDITION TO THE U S WEST AND TIME WARNER TRANSACTION NYNEX CORP INVESTED 12 BILLION IN VIACOM INC SOUTHWESTERN BELL CORP FORMED A CABLE VENTURE WITH COX ENTERPRISES INC AND BELLSOUTH CORP BOUGHT INTO PRIME MANAGEMENT INC WITH THE PROSPECT OF SPENDING BILLIONS OF DOLLARS TO UPGRADE THEIR NETWORKS AND WITH THE MARKET FOR SUCH INTERACTIVE SERVICES LARGELY UNKNOWN CABLE AND TELEPHONE COMPANIES CAN SPLIT THE RISK THROUGH JOINT EFFORTS IT'S NOT GOING TO STOP THE EVOLUTION OF THESE INDUSTRIES IN COMING TOGETHER BUT IT MAY CAUSE THESE DEALS TO HAPPEN AT A MORE RATIONAL PACE SAID JOHN WALLER HEAD OF WALLER CAPITAL CORP A CABLE BROKER AND THAT'S NOT A BAD THING SEE RELATED ARTICLE CABLE RATE CUT ORDERED BY FCC WAS FINAL STRAW WSJ FEB 24 1994 9402240076 940224 BUSINESS BRIEF CHIEFTAIN INTERNATIONAL INC RIGHTS PLAN WOULD REQUIRE BUYER TO SOLICIT ALL HOLDERS CHIEFTAIN INTERNATIONAL INC ADOPTED A SHAREHOLDERRIGHTS PLAN SIMILAR TO PLANS RECENTLY ADOPTED BY A NUMBER OF OTHER CANADIAN OIL AND GAS COMPANIES CHIEFTAIN AN EDMONTON ALBERTA OIL AND GAS PRODUCER OWNED 22 BY ALBERTA ENERGY CO CALGARY ALBERTA SAID THAT UNDER THE PLAN AN ACQUISITION OFFER MUST BE FOR ALL THE COMPANY'S VOTING SHARES AND MUST BE MADE TO ALL ITS SHAREHOLDERS IN ADDITION AT LEAST 50 OF SHARES NOT HELD BY THE BIDDER MUST BE DEPOSITED FOR THE BIDDER TO BUY ANY SHARES UNDER THE BID SHAREHOLDERS MUST BE GIVEN AT LEAST 90 DAYS TO CONSIDER THE OFFER AND THE BIDDER MUSTN'T OWN MORE THAN 10 OF CHIEFTAIN'S SHARES WHILE THE OFFER IS OPEN CHIEFTAIN SAID THE PLAN INCLUDES CERTAIN EXCEPTIONS FOR ITS CURRENT MAJOR SHAREHOLDER THE PROPOSAL IS SUBJECT TO REGULATORY APPROVAL AND WILL BE SUBMITTED FOR RATIFICATION AT CHIEFTAIN'S ANNUAL MEETING MAY 26 9402240075 940224 TECHNOLOGY & SCIENCE JAPANESE OFFICIAL RETRACTS REMARKS ON HDTV SYSTEM TOKYO A JAPANESE GOVERNMENT OFFICIAL UNDER FIRE FROM INDUSTRY AND BROADCASTERS RETRACTED AN EARLIER STATEMENT AND SAID JAPAN WILL CONTINUE SUPPORTING ITS ANALOG HIGHDEFINITION TELEVISION SYSTEM AKIMASA EGAWA DIRECTORGENERAL OF THE BROADCAST BUREAU AT JAPAN'S MINISTRY OF POSTS AND TELECOMMUNICATIONS TOLD REPORTERS THAT JAPAN WILL NOT ABANDON ITS HOMEGROWN HDTV STANDARD WHICH THE JAPAN BROADCASTING CORP STARTED DEVELOPING MORE THAN 30 YEARS AGO ON TUESDAY MR EGAWA MADE WIDELY REPORTED REMARKS SUGGESTING THAT THE POSTAL MINISTRY WOULD ABANDON BROADCASTS OF ANALOG HDTV AND WOULD CONCENTRATE ON A DIGITAL VERSION OF HDTV SIMILAR TO THOSE NOW UNDER DEVELOPMENT IN THE US AND EUROPE MANY EXPERTS CONSIDER JAPAN'S ANALOG VERSION OF HDTV INFERIOR TO EXPERIMENTAL DIGITAL SYSTEMS IN THE US AND ELSEWHERE ANALYSTS BELIEVE JAPAN WILL EVENTUALLY HAVE TO ABANDON ITS ANALOG STANDARD BUT THAT DAY NOW HAS BEEN POSTPONED MR EGAWA'S EARLIER REMARKS DREW HEAVY FIRE FROM ELECTRONICS MAKERS WHO STOOD TO LOSE THEIR HEAVY INVESTMENT IN ANALOG HDTV SETS 9402240074 940224 WMX TECHNOLOGIES FACES FRESH ATTACKS ON INCINERATOR BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL A 130 MILLION WMX TECHNOLOGIES INC TRASH INCINERATOR ALREADY UNDER CONSTRUCTION CAME UNDER RENEWED ATTACK BY SOME CONNECTICUT STATE OFFICIALS WHO WANT TO REOPEN THE DEBATE ON WHETHER THE FACILITY IS NEEDED THE BATTLE OVER THE PROJECT REFLECTS CHANGES IN THE TRASH BUSINESS WHEN INITIALLY PLANNED THE 500TONADAY LISBON CONN INCINERATOR WAS SEEN AS HELPING EASE A SHORTAGE OF DISPOSAL CAPACITY INSTEAD A GLUT OF DUMP AND INCINERATION SPACE HAS DEVELOPED UNDERMINING THE ECONOMICS OF SUCH COSTLY PLANTS CONNECTICUT ATTORNEY GENERAL RICHARD BLUMENTHAL SAID YESTERDAY HE WOULD PUSH FOR HEARINGS ON WHETHER THE LISBON PLANT TO BE OPERATED BY A UNIT OF WMX IS STILL NEEDED OFFICIALS AT THE STATE'S RESOURCES RECOVERY AUTHORITY WHICH OVERSEES MUCH OF THE TRASHBURNING CAPACITY IN CONNECTICUT ARE OPPOSED TO THE PLANT AND ASSERT IT WOULD ADD TO A GLUT OF CAPACITY THAT HAS ALREADY COST THE STATE MILLIONS OF DOLLARS TO FILL UP ITS INCINERATORS THE AUTHORITY TAKES NEW YORK CITY TRASH AT PRICES AS LOW AS 32 A TON SAYS WILLIAM DARCY THE AUTHORITY'S PRESIDENT WHILE CONNECTICUT TRASH COSTS BETWEEN 51 AND 98 A TON THIS FACILITY SHOULD NOT BE BUILT MR DARCY SAID CONNECTICUT OFFICIALS HAVE BEEN HAGGLING OVER THE PLANT'S PERMIT FOR TWOANDAHALF YEARS THE PROJECT GOT A GREEN LIGHT FROM THE STATE BUT LAST WEEK A STATE COURT JUDGE ORDERED THE CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION TO RECONSIDER A PROVISION IN THE PERMIT THAT LIMITED OUTOFSTATE WASTE GOING TO BE PLANT THE JUDGE DENIED OTHER APPEALS BY OPPONENTS OF THE PROJECT IN LAWSUITS IN FEDERAL COURTS ELSEWHERE BANS ON THE INTERSTATE TRANSPORT OF WASTE HAVE BEEN STRUCK DOWN AS ILLEGALLY INTERFERING WITH INTERSTATE COMMERCE WHILE CARRYING OUT THE JUDGE'S ORDER TO CONSIDER THAT NARROW QUESTION A HEARING OFFICER WILL ALSO BE ASKED BY THE ATTORNEY GENERAL BUT CAN DECLINE TO RECONSIDER THE NEED FOR THE PLANT THE ISSUE OF NEED OUGHT TO BE REVISITED SAID RICHARD BLUMENTHAL ATTORNEY GENERAL HE AGREES WITH THE STATE RESOURCES RECOVERY AUTHORITY THAT THE CAPACITY GLUT IN CONNECTICUT HAS ONLY WORSENED IN RECENT MONTHS OAK BROOK ILLBASED WMX SAID IT HAS CONTRACTS FOR WASTE TO EASILY FILL THE PLANT THE WASTE COMPANY SAID THE JUDGE'S DENIAL OF ALL OTHER APPEALS WAS A VICTORY AND THAT IT EXPECTS TO CONTINUE BUILDING THE PLANT WHICH IS LESS THAN 10 COMPLETED THE COMPANY HASN'T DECIDED YET WHETHER TO OPPOSE EFFORTS TO REOPEN THE DEBATE ON THE NEED FOR THE PLANT 9402240073 940224 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AIRCRAFT MAKERS AND BANKS ARE EXPANDING INTO CHINA TO TAP THE WORLD'S MOST PROMISING AVIATION MARKET AND REPLACE BUSINESS LOST FROM RECESSIONBRUISED CLIENTS IN NORTH AMERICA AND EUROPE AS CHINA'S ECONOMIC REFORMS HAVE GATHERED SPEED SO HAS DEMAND FOR AIR TRAVEL PASSENGER TRAFFIC JUMPED 33 IN 1992 AND 25 IN 1993 ASSUMING TRAFFIC GROWTH BETWEEN 10 AND 20 CHASE MANHATTAN BANK FORECAST THAT CHINA WILL SPEND 897 BILLION ON 1200 PASSENGER PLANES THROUGH THE YEAR 2010 EXPANDING ITS FLEET TO 1593 FROM 335 IN 1992 SINCE BEIJING DEREGULATED THE AVIATION INDUSTRY IN 1988 THE NUMBER OF CHINESE AIRLINES HAS SOARED TO ALMOST 40 FROM ONE AIRBUS INDUSTRIE OF EUROPE AND MCDONNELL DOUGLAS CORP OF THE US EACH ARE OPENING BEIJING UNITS AND STATIONING SENIOR EXECUTIVES IN CHINA TO NURTURE GOVERNMENT AND AIRLINE CONTACTS IN THE MARKET DOMINATED BY BOEING CO OF THE US BANKS TOO ARE TRIPPING OVER EACH OTHER TO GET A PIECE OF THE ACTION A CHASE OFFICIAL SAID THAT WHEN A CHINESE AIRLINE RECENTLY SOUGHT FINANCING PROPOSALS 20 INSTITUTIONS OFFERED THEIR SERVICES THE SWEDISH GOVERNMENT WILL OPEN ITS RAILROAD NETWORK TO NEW OPERATORS STARTING NEXT JANUARY BY ABOLISHING THE SYSTEM OF ROUTE MONOPOLIES THE DEREGULATION MOVE IS DESIGNED TO ATTRACT MORE TRAVELERS BY INTRODUCING COMPETITION TO THE STATE RAILROAD WHICH WILL CONTINUE TO OPERATE PASSENGER AND FREIGHT TRAINS RAILSYSTEM FUNCTIONS SUCH AS DEPOTS RUN BY THE STATE MAY BE USED BY PRIVATE RIVALS AT COST SWEDEN PREVIOUSLY DEREGULATED THE AVIATION TELEPHONE AND POSTAL SECTORS UKRAINE'S ECONOMIC PLIGHT WORSENED LAST MONTH VIKTOR YUSCHENKO THE CENTRAL BANK CHAIRMAN SAID HE TOLD PARLIAMENT THAT DEBTS BETWEEN UKRAINIAN ENTERPRISES ALMOST TRIPLED TO AT LEAST 3 BILLION IN JANUARY ALONE WHEN INFLATION RAN AT A MONTHLY RATE OF 119 AND 300 MAJOR ENTERPRISES A THIRD OF THE TOTAL IN THE FORMER SOVIET REPUBLIC SHUT DOWN THE GOVERNMENT OWES 1057 MILLION IN UNPAID SALARIES FOR JANUARY FACING A COLLAPSE OF ITS CURRENCY IN THE PAST FEW MONTHS UKRAINE HAS TIGHTENED REGULATIONS ON TRADING THOUGH A BLACK MARKET FLOURISHES MR YUSCHENKO SAID CAPITAL FLIGHT FROM UKRAINE TOTALED 18 BILLION IN THE PAST TWO YEARS AN AUSTRALIAN SEXDISCRIMINATION CASE WAS SETTLED AFTER ALMOST 14 YEARS THE DEAL INVOLVED ABOUT 700 WOMEN AND BROKEN HILL PROPRIETARY CO TERMS WEREN'T DISCLOSED BUT AUSTRALIAN MEDIA REPORTS ESTIMATED THE COST TO THE STEEL MINING AND OIL GIANT AT BETWEEN 36 MILLION AND 101 MILLION UNDER 1970S EMPLOYMENT PRACTICES DISCONTINUED IN 1981 THE WOMEN CLAIMED THEY HAD BEEN DENIED WORK AT BHP'S STEELWORKS IN NEW SOUTH WALES BECAUSE OF THEIR SEX BETWEEN JUNE 1977 AND APRIL 1980 THE STEEL PLANT EMPLOYED 4289 WORKERS INCLUDING 58 WOMEN ABOUT 2000 WOMEN WERE PUT ON WAITING LISTS FOR JOBS INVESTMENT IN EASTERN GERMANY LAST YEAR ROSE 19 TO 8233 BILLION FROM A YEAR EARLIER BUT THE PACE SLOWED SHARPLY FROM A 34 JUMP IN 1992 THE IFO INSTITUTE FOR ECONOMIC RESEARCH SAID AND THIS YEAR IFO EXPECTS THE GROWTH RATE TO EASE TO 14 THE SERVICE SECTOR ATTRACTED 33 OF LAST YEAR'S INVESTMENT FOLLOWED BY MANUFACTURING WITH 30 MEANWHILE THE GOVERNMENT SAID 1993 NEWBUSINESS REGISTRATIONS IN EASTERN GERMANY FELL 11 TO 190032 FROM 1992 AND SLUMPED 35 FROM 1991 WHILE 1993 BUSINESS CLOSURES TOTALED 119557 DOWN LESS THAN 1 FROM 1992 BUT UP 20 FROM 1991 CHINA SAID IT WOULD BEGIN BUILDING FOUR NUCLEAR REACTORS IN THE NEXT TWO YEARS IN GUANGDONG PROVINCE BRUSHING OFF CONCERNS IN NEARBY HONG KONG ABOUT CHINA'S POOR INDUSTRIAL SAFETY RECORD BEIJING INSISTS IT MEETS INTERNATIONAL NUCLEAR STANDARDS TWO OF THE PLANTS ARE PLANNED FOR DAYA BAY 31 MILES NORTHWEST OF HONG KONG WHERE CHINA BEGAN OPERATING A TWINREACTOR PLANT TWO WEEKS AGO THE OTHER TWO WILL BE SITUATED IN YANGJIANG A SMALL TOWN ABOUT 150 MILES SOUTH OF THE BRITISH COLONY INITIAL PLANS CALLED FOR A PAIR OF REACTORS IN ONE OF THE LOCATIONS BUT NOT BOTH BUT GUANGDONG IS FAR FROM CHINA'S COAL AND HYDROPOWER ENERGYPRODUCING REGIONS THE BOOMING PROVINCE NOW CAN SUPPLY ONLY 70 OF THE ELECTRICITY THAT ITS FACTORIES NEED AND IT HAS AMBITIOUS PLANS TO ATTRACT EVEN MORE INDUSTRY MOREOVER 70 OF THE ELECTRICITY BEING PRODUCED BY THE TWO NEW REACTORS AT DAYA BAY IS BEING SOLD TO HONG KONG TO REPAY FOREIGN LOANS FOR THE PLANT'S CONSTRUCTION CHILE'S ECONOMIC GROWTH RATE WHICH WAS 103 IN 1992 SLOWED TO 6 IN 1993 IN LINE WITH THE GOVERNMENT'S GOAL TO REMAIN AMONG GLOBAL PACESETTERS SINGAPORE SET UP A 630 MILLION FUND AS A CATALYST TO DEVELOP THE REPUBLIC'S CORE INDUSTRIAL CAPABILITIES BY MAKING STRATEGIC INVESTMENTS WITH PRIVATE PARTNERS SOME CANDIDATES IN UKRAINE'S PARLIAMENTARY ELECTIONS NEXT MONTH ARE PROMISING VOTERS FREE FUNERALS GOVERNMENTPAID BURIALS WOULD HAVE APPEAL IN THE POOR REPUBLIC WHERE 76 OF ELIGIBLE VOTERS ARE ELDERLY 9402240072 940224 BUSINESS BRIEF UAL CORP UNITED'S TALKS WITH UNION OF FLIGHT ATTENDANTS STALL THE FLIGHT ATTENDANTS UNION OF UNITED AIRLINES SAID NEGOTIATIONS BROKE DOWN OVER THE LABOR GROUP'S PARTICIPATION IN A PROPOSED EMPLOYEEBUYOUT OF THE AIRLINE REPRESENTING UNITED'S 18000 CABIN ATTENDANTS THE ASSOCIATION OF FLIGHT ATTENDANTS IS THE ONLY MAJOR UNION THAT ISN'T PART OF THE PLANNED 5 BILLION BUYOUT LAST MONTH THE UNITED'S PILOTS AND MACHINISTS UNIONS APPROVED THE PLAN UNDER WHICH THEY AND NONCONTRACT EMPLOYEES ARE EXCHANGING WAGE AND WORKRULE CONCESSIONS FOR A STAKE OF AT LEAST 53 IN UAL CORP THE AIRLINE'S PARENT COMPANY BASED IN ELK GROVE TOWNSHIP ILL THE WHOLE TRANSACTION STILL REQUIRES SHAREHOLDER CONSENT THE MEASURE IS EXPECTED TO BE VOTED THIS SPRING THE DEAL HAS ALREADY BEEN STRUCTURED TO EXCLUDE THE FLIGHT ATTENDANTS UNION WHICH INITIALLY DROPPED OUT OF THE BUYOUT DISCUSSIONS LAST SUMMER IT DID SO TO PROTEST UNITED'S OPENING OF A CABIN ATTENDANT BASE IN TAIPEI TAIWAN A MOVE THE UNION VIEWS AS A THREAT TO THE JOBS OF US ATTENDANTS IF THE FLIGHT ATTENDANTS EVENTUALLY AGREE TO PAYCUTS AND JOIN THE BUYOUT THE MACHINISTS AND PILOTS WILL SIMPLY SHORTEN THE TERM OF THEIR WAGE CONCESSIONS 9402240071 940224 ABREAST OF THE MARKET STOCKS RESUME SLIDE AMID JUMP IN BOND YIELDS FEARS OF RATE RISE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE STOCKMARKET SLIDE RESUMED AFTER A ONEDAY REPRIEVE AS BOND YIELDS JUMPED AGAIN A LOSS OF 5/8 POINT IN THE TREASURY'S 30YEAR BOND LIFTED ITS YIELD TO 665 AND RENEWED WORRIES AMONG STOCK INVESTORS THAT RISING RATES WILL TORPEDO THE BULL MARKET THE DOW JONES INDUSTRIAL AVERAGE WHICH JUMPED 2420 TUESDAY SLUMPED 1998 OR 051 TO 389168 BROADBASED INDEXES FELL SOMEWHAT LESS DECLINERS LED ADVANCERS ABOUT 1177 TO 948 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE BIG BOARD WAS ACTIVE AT ABOUT 309891000 MILLION SHARES UP FROM 270636000 MILLION TUESDAY WEAKNESS IN ECONOMICALLY SENSITIVE STOCKS CONTRIBUTED TO THE UNDERPERFORMANCE OF THE INDUSTRIAL AVERAGE ALUMINUM CO OF AMERICA LOST 1 TO 76 UNITED TECHNOLOGIES FELL 1 1/4 TO 67 1/2 AND GOODYEAR TIRE SLIPPED 1 1/4 TO 45 THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 077 OR 016 TO 47069 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 035 OR 013 TO 26113 THE NASDAQ COMPOSITE INDEX DECLINED 204 OR 026 TO 78911 WHILE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS OFF 064 OR 014 TO 47174 PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS SAID WEAKNESS IN THE DOW JONES UTILITIES AVERAGE CONTRIBUTED TO THE PESSIMISM THE AVERAGE WHICH LOST 118 OR 056 TO 21059 IS VIEWED BY SOME AS A LEADING INDICATOR FOR THE STOCK MARKET AS A WHOLE AS WELL AS FOR BONDS HOME DEPOT RALLIED 2 1/4 TO 42 3/8 AFTER GAINING 1 1/8 TUESDAY THE ATLANTA HOMEIMPROVEMENT PRODUCTS RETAILER TUESDAY REPORTED FOURTHQUARTER EARNINGS OF 25 CENTS A SHARE UP FROM 21 CENTS A YEAR AGO IT LATER TOLD ANALYSTS IT EXPECTS EARNINGS PER SHARE TO RISE 30 FOR THE FISCAL YEAR GAP RALLIED 1 1/8 TO 45 3/8 LEHMAN BROTHERS RAISED ITS ESTIMATES OF THE SAN FRANCISCO APPAREL RETAILER'S FOURTHQUARTER EARNINGS TO 74 CENTS A SHARE FROM A PRIOR FORECAST OF 67 CENTS GAP HAD A PROFIT OF 46 CENTS IN THE YEARAGO QUARTER HEWLETTPACKARD JUMPED 1 1/2 TO 91 5/8 A DEAN WITTER REYNOLDS ANALYST REPEATED A BUY RECOMMENDATION ON THE PALO ALTO CALIF COMPUTER COMPANY'S STOCK IT HAS JUMPED FROM 85 1/2 SINCE THE COMPANY REPORTED STRONG FIRSTQUARTER EARNINGS ON FEB 16 PHILIP MORRIS INCREASED 5/8 TO 58 7/8 THE NEW YORK FOOD AND TOBACCO COMPANY INCREASED ITS QUARTERLY DIVIDEND TO 69 CENTS FROM 65 CENTS EFFECTIVE WITH A PAYOUT TO BE MADE IN APRIL SEPARATELY IT WILL RESUME A STOCK PURCHASE PROGRAM THAT WAS SUSPENDED A YEAR AGO BRITISH PETROLEUM TOPPED THE BIG BOARD MOST ACTIVE LIST FOR A SECOND STRAIGHT DAY ADDING 5/8 TO 65 1/4 ON VOLUME OF 249 MILLION THE ACTIVITY IS SAID TO BE TIED TO TRADING STRATEGIES LINKED TO A DIVIDEND THE COMPANY WILL PAY LATER THIS YEAR HERSHEY FOODS SLIPPED 1 3/4 TO 51 3/4 JANNEY MONTGOMERY SCOTT LOWERED THE HERSHEY PA COMPANY'S STOCK TO HOLD FROM BUY CITING ITS RECENT GAINS TUESDAY IT CLIMBED TO WITHIN 2 1/2 POINTS OF ITS 52WEEK HIGH DEERE CONTINUED TO RALLY AFTER ITS MUCHSTRONGERTHANEXPECTED FOURTHQUARTER EARNINGS REPORT TUESDAY SEVERAL ANALYSTS YESTERDAY UPGRADED THE FARMEQUIPMENT COMPANY IN MOLINE ILL THE STOCK WAS UP 1 1/2 TO 84 AFTER SURGING 5 1/4 TUESDAY POLICY MANAGEMENT JUMPED 2 5/8 TO 38 AFTER CS FIRST BOSTON LIFTED ITS RATING ON SHARES OF THE COMPANY IN BLYTHEWOOD SC WHICH PROVIDES SOFTWARE SYSTEMS TO INSURANCE CONCERNS THE STOCK IS NOW RATED BUY IT HAD BEEN HOLD NORDSTROM JUMPED 2 7/8 TO 39 3/4 ON NASDAQ LATE TUESDAY THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 74 CENTS A SHARE UP FROM 61 CENTS A YEAR EARLIER YESTERDAY GOLDMAN SACHS & CO RAISED ITS OPINION OF THE SEATTLE RETAILER TO MODERATE OUTPERFORM FROM MARKET PERFORMER NATIONAL WESTMINSTER DROPPED 2 3/4 TO 45 3/4 EVEN THOUGH THE UNITED KINGDOM BANKING COMPANY SAID ITS PRETAX PROFIT MORE THAN DOUBLED LAST YEAR TO 989 MILLION 146 BILLION ANALYSTS SAID SOME INVESTORS MIGHT HAVE BEEN DISAPPOINTED THAT THE RESULTS WERE SLIGHTLY BELOW THE 1 BILLION AVERAGE OF ESTIMATES HEALTHCARE COMPARE ROSE 1 5/8 TO 24 3/8 ON NASDAQ THE COMPANY IN DOWNERS GROVE ILL WILL PROVIDE ITS COSTCONTAINMENT SERVICES TO CLIENTS OF HEALTHMAINTENANCE ORGANIZATION OPERATOR UNITED HEALTHCARE SHARES OF UNITED HEALTHCARE MINNETONKA MINN SLIPPED 1 1/8 TO 80 7/8 LOTUS DEVELOPMENT CLIMBED 1 3/4 TO 70 A 52WEEK HIGH THE COMPANY SAID IT EXPECTS TO ADD ABOUT 600000 NEW LOTUS NOTES PRODUCT USERS THIS YEAR THE BOND MARKET SEEMS TO BE DESTINED TO TRADE TO 675 SAID JOSEPH DEMARCO MANAGING DIRECTOR OF EQUITY TRADING AT MARINVEST A UNIT OF HSBC ASSET MANAGEMENT THAT IS UNSETTLING TO THE STOCK MARKET WHICH HAS COUNTED ON LOW RATES TO KEEP MONEY FLOWING INTO EQUITY FUNDS AND PROP UP SHARE PRICES CYCLICAL ISSUES HAVE BEEN AMONG THE STRONGEST THIS YEAR BUT MR DEMARCO SAID THEY RAN INTO PROFITTAKING YESTERDAY MR CARDILLO OF WESTFALIA INVESTMENTS SAID HE EXPECTS THE BOND MARKET TO STABILIZE IN THE NEXT SEVERAL WEEKS AND THEN HEAD HIGHER IN MARCH HE PREDICTED ENCOURAGING REPORTS ON EMPLOYMENT AND INFLATION FOR FEBRUARY WILL PUSH BOND YIELDS LOWER AND PERHAPS CATAPULT THE DOW INDUSTRIALS ABOVE 4000 9402240070 940224 BUSINESS BRIEF DOMINION RESOURCES INC VIRGINIA POWER UNIT SEEKS TO BLOCK DUPONT CO DEAL VIRGINIA ELECTRIC & POWER CO SAID IT ASKED STATE REGULATORS TO BLOCK A PROPOSED PARTNERSHIP BETWEEN DUPONT CO AND AN LG&E ENERGY CORP UNIT THAT WOULD OWN AND OPERATE ELECTRIC PLANTS AT TWO DUPONT FIBER PLANTS IN VIRGINIA POWER'S SERVICE TERRITORY AS WELL AS SEVEN IN OTHER MIDATLANTIC AND SOUTHEASTERN REGIONS VIRGINIA POWER A UNIT OF DOMINION RESOURCES INC RICHMOND VA SAID THE PROPOSED ARRANGEMENT WOULD VIOLATE STATE LAW THAT GIVES VIRGINIA POWER THE EXCLUSIVE RIGHT TO FURNISH ELECTRICITY TO RETAIL CUSTOMERS IN ITS SERVICE AREA IN VIRGINIA A SPOKESMAN FOR DUPONT SAID WE WILL TAKE THE NECESSARY STEPS TO BE SURE THE STATE CORPORATION COMMISSION KNOWS WHAT WE'RE PLANNING AND THAT THE PARTNERSHIP WOULDN'T BE A REGULATED UTILITY NOR WOULD IT VIOLATE ANY STATE LAW AN LG&E SPOKESMAN SAID THIS ISN'T REALLY A RETAIL ISSUE BECAUSE THE PARTNERSHIP WILL OPERATE COGENERATION UNITS THAT ARE ALREADY THERE WE'RE NOT CREATING A NEW SALE 9402240069 940224 LAW LEGAL BEAT IBM DEFENSE OF MAINFRAME POLICY RUNS INTO OLD ANTITRUST DECREE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL AN ANTITRUST CONSENT DECREE DATING FROM 1956 HAS COME BACK TO HAUNT INTERNATIONAL BUSINESS MACHINES CORP IN A COURT BATTLE OVER ITS ACTIVITIES IN THE MARKET FOR UPGRADING MAINFRAME COMPUTERS LAWYERS FOR HIGHTECH SERVICE COMPANIES AND DEALERS ARE CLOSELY WATCHING THE CASE TO SEE HOW MUCH CONTROL THE COMPUTER GIANT WILL BE ALLOWED TO EXERT OVER PARTS AND SERVICES FOR ITS MAINFRAMES THEY SAY THEY FEAR THAT A VICTORY FOR IBM COULD MAKE IT HARDER FOR LEASING AND REPAIR COMPANIES TO COMPETE IN THE MULTIBILLIONDOLLAR MARKET FOR UPGRADING MAINFRAME COMPUTERS COMPANIES THAT LEASE AND SERVICE TELECOMMUNICATIONS EQUIPMENT SAY THE CASE ALSO COULD SET A PRECEDENT AFFECTING THEIR ABILITY TO COMPETE WITH MANUFACTURERS THE COMPLEX CASE BEFORE THE FEDERAL APPEALS COURT IN PHILADELPHIA WHICH HEARD ORAL ARGUMENTS LAST MONTH HAS BEEN SIMMERING QUIETLY FOR NINE YEARS CENTRAL TO THE LITIGATION IS THE LANDMARK 38YEAROLD SETTLEMENT WITH THE FEDERAL GOVERNMENT WHICH REQUIRED IBM TO OFFER CUSTOMERS THE OPPORTUNITY TO BUY NOT JUST RENT DATAPROCESSING MACHINES AND PARTS THE CONSENT DECREE OPENED THE WAY FOR A NEW MARKET IN WHICH INDEPENDENT DEALERS COULD PURCHASE IBM MACHINES AND LEASE THEM TO USERS THE AGREEMENT ALSO BARRED IBM FROM MAKING THE PURCHASE OF A MACHINE CONDITIONAL ON OTHER SALES OR SERVICES THEREBY CREATING BUSINESS FOR SERVICE COMPANIES BUT COMPUTERLEASING AND SERVICE COMPANIES CLAIM IN THE CASE THAT IBM VIOLATED THE CONSENT DECREE BY SQUEEZING OUT COMPETITORS IN THE BUSINESS OF UPGRADING MAINFRAMES AMONG THE MOST POWERFUL AND MOST EXPENSIVE COMPUTERS BECAUSE A MAINFRAME CAN COST AS MUCH AS 6 MILLION MANY OWNERS PREFER TO UPGRADE THEIR MACHINES RATHER THAN BUY NEW MODELS LEASING COMPANIES IN PARTICULAR RELY ON UPGRADES WHICH ENABLE THEM TO KEEP THEIR STOCK UPTODATE WITHOUT BUYING THE LATEST MODELS IN THE EARLY 1980S IBM ALLEGEDLY CHANGED THE WAY IT PRICED SOME OF THE PARTS NEEDED TO UPGRADE MAINFRAMES THE NEW PRICING POLICY ACCORDING TO THE LAWSUIT MADE IT PROHIBITIVELY EXPENSIVE FOR ANY COMPANY OTHER THAN IBM TO UPGRADE A MAINFRAME UNDER THE PRICING POLICY IT WAS CHEAPER TO RETURN PARTS TO IBM AND HAVE IBM DO THE WORK THAN TO BUY THE PARTS SEPARATELY AND HAVE THEM INSTALLED ALLENMYLAND INC THE SERVICE COMPANY THAT BROUGHT THE SUIT IN 1985 CLAIMS THAT IBM'S PRICING POLICY AMOUNTED TO AN ILLEGAL SCHEME TO PREVENT COMPETITION THE COMPUTER DEALERS AND LESSORS ASSOCIATION A TRADE GROUP HAS LINED UP IN SUPPORT OF ALLENMYLAND WARNING THAT THE VERY INDUSTRIES THAT THE CONSENT DECREE PRODUCED COULD BE JEOPARDIZED IBM MAINTAINS THAT THE PRICING POLICY ISN'T ANTICOMPETITIVE AND ISN'T AT ODDS WITH THE CONSENT DECREE THE TRIAL JUDGE IN THE CASE RULED IN IBM'S FAVOR SIX YEARS AGO CITING IBM'S BUSINESS JUSTIFICATIONS FOR THE POLICY FOR INSTANCE THE JUDGE SAID THE POLICY IS A LEGITIMATE AND REASONABLE WAY TO ENSURE THE PROMPT AND PROPER RETURN OF PARTS USED IN IBM'S MAINFRAME BUSINESS IT IS THIS RULING THAT IS UNDER APPEAL IBM ALSO SAYS THAT BECAUSE NEW TECHNOLOGY HAS MADE UPGRADES MUCH SIMPLER TO PERFORM THE SERVICES OFFERED BY ALLENMYLAND ARE OBSOLETE IN THE EARLY 1980S THE TECHNOLOGY WAS SO DIFFERENT SAID EVAN CHESLER AN ATTORNEY FOR IBM AT NEW YORK LAW FIRM CRAVATH SWAINE & MOORE ALLENMYLAND'S SERVICES WERE ONCE A VERY LUCRATIVE BUSINESS IT WOULD TAKE DAYS TO DO ONE OF THESE RECONFIGURATIONS NOW MR CHESLER SAID THE LABOR ACCOUNTS FOR LESS THAN 1 OF THE COST OF AN UPGRADE LEAVING NO VIABLE BUSINESS OPPORTUNITY FOR ALLENMYLAND THE NEED FOR MAINTENANCE SERVICES ALSO HAS SHRUNK AS MAINFRAME MODELS HAVE IMPROVED SAID DAVID FRANKEL A MINNEAPOLIS COMPUTER CONSULTANT A DECADE AGO THE MAINTENANCE SIDE OF THE BUSINESS WAS MORE IMPORTANT IT COULD COST THOUSANDS OF DOLLARS A DAY FOR SERVICE MR FRANKEL SAID IN MANY CASES HE SAID IT HAS BECOME CHEAPER TO BUY A NEW MAINFRAME THAN TO MAINTAIN AND UPGRADE AN OUTOFDATE MODEL ALLENMYLAND THOUGH SAYS THE MAINFRAMEUPGRADE MARKET REMAINS A POTENTIAL GOLD MINE AN INDUSTRY STUDY ESTIMATED THAT POTENTIAL IBM UPGRADES FROM 1991 TO 1996 TOTAL MORE THAN 30 BILLION THE BROOMALL PA COMPANY SAYS THAT IF IT WEREN'T FOR THE PRICING POLICY IT WOULD BE ABLE TO WIN UPGRADE BUSINESS AWAY FROM IBM IMPROVEMENTS IN TECHNOLOGY HAVE REDUCED THE TIME NEEDED FOR SOME UPGRADES BUT NOT ALL SAID ROBERT G LEVY AN ATTORNEY FOR ALLENMYLAND IN THE WASHINGTON OFFICE OF SUTHERLAND ASBILL & BRENNAN AND MR LEVY SAID THAT ALTHOUGH UPGRADES TODAY TAKE LESS TIME THE DEMAND FOR THE SERVICE HAS INCREASED MR LEVY ALSO ARGUES THAT THE LOWERCOURT RULING SHOULD BE RECONSIDERED IN LIGHT OF A 1992 US SUPREME COURT DECISION AGAINST EASTMAN KODAK CO IN A DISPUTE OVER THE SERVICING OF THAT COMPANY'S PHOTOCOPYING MACHINES IN THAT CASE THE SUPREME COURT SAID LARGE MANUFACTURERS COULD BE SUED FOR SHUTTING OUT SMALL COMPANIES SEEKING TO SELL PARTS AND SERVICES LIKE THE KODAK CASE IBM'S PRICING POLICY MADE IT TOO EXPENSIVE TO GET THE SERVICE FROM INDEPENDENT COMPANIES MR LEVY SAID YOU'RE LOCKED IN SAID MR LEVY CUSTOMERS CAN'T AFFORD TO GET OUT THAT'S THE EXERTING OF MARKET POWER MR CHESLER THE IBM ATTORNEY SAID THE TRIAL JUDGE'S RULING WAS IN LINE WITH THE SUPREME COURT'S KODAK DECISION ONLY ABOUT ONETHIRD OF FEDERAL DISTRICT COURTS HAVE ADOPTED A NEW PRETRIAL DISCOVERY RULE AIMED AT SPEEDING UP THE EARLY STAGES OF A LAWSUIT THE RULE REQUIRES PARTIES TO LAWSUITS TO VOLUNTARILY DISCLOSE TO EACH OTHER CERTAIN BASIC DOCUMENTS AND DATA THE FEDERAL MEASURE WENT INTO EFFECT DEC 1 1993 BUT GAVE LOCAL FEDERAL COURTS THE POWER TO REJECT THE RULE OR TAKE OTHER ACTION SO FAR ONLY 32 OF THE 94 FEDERAL JUDICIAL DISTRICTS HAVE PUT INTO PRACTICE RULE 26A1 AS WRITTEN ACCORDING TO A SURVEY BY THE ADMINISTRATIVE OFFICE OF THE US COURTS THE OFFICE FOUND THAT MOST COURTS ARE STILL STUDYING THE IDEA OR HAVE ADOPTED ALTERNATIVES I THINK IT IS TOO EARLY TO TELL ABOUT THE IMPACT PEOPLE ARE FEELING THEIR WAY SAID WILLIAM SCHWARZER THE DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE US COURTS' RESEARCH ARM IT IS LIKE ANY RULE IT TAKES A FEW YEARS BEFORE PEOPLE GET USED TO IT LAWYERS AND JUDGES ARE SLOW TO CHANGE THEIR CUSTOMS AND WAYS THE RULE WHICH WAS DEVELOPED BY THE JUDICIARY WAS OPPOSED BY MOST OF THE ORGANIZED BAR WHICH LOBBIED HARD TO KILL THE MEASURE LAST YEAR CRITICS SAY THE RULE IS TOO VAGUE AND COULD END UP SPAWNING ADDITIONAL UNINTENDED LITIGATION I THINK IT IS CREATING A LOT OF CONFUSION SAID ALFRED W CORTESE JR A PARTNER IN THE WASHINGTON OFFICE OF KIRKLAND & ELLIS WHO LED OPPOSITION TO THE RULE MR CORTESE PREDICTED THAT THERE MAY BE AN EFFORT LATER THIS YEAR TO REVIVE LEGISLATION IN CONGRESS TO DEFER ENACTMENT OF THE RULE NOTED THE JURY IN THE WORLD TRADE CENTER BOMBING TRIAL IN MANHATTAN BEGAN DELIBERATIONS LATE YESTERDAY THE PANEL OF EIGHT WOMEN AND FOUR MEN RECEIVED THE CONSPIRACY CASE AGAINST THE FOUR DEFENDANTS CHARGED IN THE FEB 26 1993 ATTACK AFTER US DISTRICT JUDGE KEVIN T DUFFY INSTRUCTED THEM IN THE RELEVANT LAW DELIBERATIONS ARE EXPECTED TO BE LENGTHY GIVEN THE ABUNDANCE OF EVIDENCE PRESENTED DURING THE 19WEEK TRIAL AND THE FACT THAT THE JURORS HALF OF WHOM LIVE IN NEW YORK SUBURBS AREN'T EXPECTED TO BE SEQUESTERED OR TO MEET ON WEEKENDS RICHARD B SCHMITT AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402240068 940224 BUSINESS BRIEF US BIOSCIENCE INC CHARGE IS CITED IN NET LOSS OF 193 MILLION FOR PERIOD US BIOSCIENCE INC POSTED A SUBSTANTIALLY WIDENED LOSS FOR THE FOURTH QUARTER REFLECTING A 102 MILLION CHARGE FOR LITIGATION SETTLEMENT THE WEST CONSHOHOCKEN PA DRUG DEVELOPER CONCENTRATING ON CANCER AND AIDS PRODUCTS SAID THE LOSS WAS 193 MILLION OR 49 CENTS A SHARE COMPARED WITH A LOSS OF 68 MILLION OR 17 CENTS A SHARE IN THE YEAREARLIER PERIOD THE LATEST QUARTER'S FIGURE INCLUDED A PROVISION FOR SETTLING A SHAREHOLDER CLASS ACTION WHICH ALLEGED THE COMPANY MADE MISLEADING STATEMENTS ON THE LIKELIHOOD OF A PRODUCT GAINING RAPID GOVERNMENT APPROVAL THE COMPANY SAID ITS INSURERS WILL PAY FOR 5 MILLION OF THE 15 MILLION TOTAL COST REVENUE INCLUDING SALES AND INVESTMENT AND LICENSING INCOME FELL TO 12 MILLION FROM 2 MILLION A YEAR EARLIER FOR THE YEAR THE COMPANY REPORTED A NET LOSS OF 406 MILLION OR 103 A SHARE NEARLY DOUBLE THE LOSS OF 202 MILLION OR 51 CENTS SHARE IN 1992 REVENUE WAS 82 MILLION COMPARED WITH 114 MILLION 9402240067 940224 POTTY PARITY' LETS WOMEN WASH HANDS OF LONG LOO LINES SEVERAL STATE LAWS GIVE JANE AS MANY JOHNS AS JOHN FLUSH WITH SUCCESS IN OHIO BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL ON INAUGURATION EVE AS HER HOMESTATE OHIO UNIVERSITY MARCHING BAND PERFORMED AT THE HYATT REGENCY ON CAPITOL HILL CJ PRENTISS WAITED IN LINE AT THE WOMEN'S ROOM AND WAITED NOW SHE GETS HER CHANCE REP PRENTISS RECENTLY INTRODUCED LEGISLATION THAT WOULD REQUIRE BIG PUBLIC SPACES SUCH AS THEATERS STADIUMS AND CONVENTION HALLS TO PROVIDE TWICE AS MANY TOILETS FOR WOMEN AS FOR MEN IF HER BILL BECOMES LAW IT WILL ADD OHIO TO THE GROWING LIST OF STATES 10 AT LEAST THAT NOW MANDATE POTTY PARITY DELAWARE AND GEORGIA ALSO HAVE POTTY BILLS PENDING THE TREND IS PARTLY A FRINGE BENEFIT OF WOMEN'S GROWING STRENGTH IN STATE CAPITOLS 205 OF LEGISLATORS NOW ARE WOMEN UP FROM 134 A DECADE AGO BUT MEN ALSO HAVE A STAKE IN POTTY PEACE CALIFORNIA STATE SEN ART TORRES APPARENTLY WAS THE FIRST SPONSOR OF SUCH LEGISLATION WHICH HE INTRODUCED IN 1987 AFTER HIS WIFE AND DAUGHTER ENDURED A LENGTHY BATHROOM WAIT AT A TCHAIKOVSKY CONCERT AT THE HOLLYWOOD BOWL THE BILL BECAME LAW THAT YEAR IN TEXAS AN AIDE TO STATE SEN GONZALO BARRIENTOS THOUGHT IT WAS RIDICULOUS TO SPEND A THIRD OF HIS EVENING AT A FESTIVAL JUST KEEPING HIS GIRLFRIEND COMPANY IN A 45MINUTE LINE TEXAS DECLARED POTTY PARITY LAST SPRING PROPARITY LEGISLATORS ALSO HAVE BEEN ABLE TO TAP INTO A WELLSPRING OF ACADEMIC RESEARCH THAT SUPPORTS THEIR VIEWS A SIGNIFICANT CONTRIBUTION TO THE FIELD WAS MADE AT VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY WHERE RESEARCHERS STOOD OUTSIDE PUBLIC RESTROOMS IN 1987 AND 1988 AND DISCREETLY TIMED HOW LONG PEOPLE WERE INSIDE AS MEN AND WOMEN EMERGED THEY WERE ASKED TO FILL OUT A SURVEY AND MOST COMPLIED THE FINDINGS WOMEN NEEDED ABOUT TWICE AS MUCH TIME IN RESTROOMS AS MEN IN SPORTS ARENAS FOR INSTANCE WOMEN TOOK ALMOST THREE MINUTES WHILE MEN NEEDED A MERE 836 SECONDS THE KEY FACTOR WAS NOT THAT WOMEN DID SIGNIFICANTLY MORE PRIMPING AS SOME HAD SPECULATED RATHER RESEARCHERS BELIEVED THAT THE TIME DIFFERENCE WAS LINKED TO WOMEN'S NEED TO CONTEND WITH MORE LAYERS OF CLOTHES AS WELL AS TO ANATOMICAL DIFFERENCES WOMEN ALSO APPARENTLY WERE SLOWED BY HAVING CHILDREN IN TOW SAYS STUDY COAUTHOR SAVANNAH S DAY WHO DECIDED TO CONDUCT THE RESEARCH AFTER SHE MISSED A FLIGHT WHILE WAITING IN A RESTROOM LINE AT AN AIRPORT DENISE WELLS ANOTHER IMPORTANT SPOKESWOMAN FOR RESTROOM EQUALITY EARNED HER CREDENTIALS OUTSIDE ACADEMIA IN 1990 THE HOUSTON LEGAL SECRETARY WAS ARRESTED FOR USING THE MEN'S ROOM AT A CONCERT SHE WAS TRIED IN MUNICIPAL COURT IN HOUSTON ON CHARGES OF VIOLATING A CITY ORDINANCE DURING CROSSEXAMINATION A POLICE OFFICER TESTIFIED THAT 20 PEOPLE WERE WAITING TO ENTER THE WOMEN'S ROOM IN A LINE THAT SPILLED INTO A HALLWAY WHILE THE MEN'SROOM LINE DIDN'T EXTEND PAST THE RESTROOM DOOR SHE WAS FOUND NOT GUILTY AFTER A JURY OF TWO MEN AND FOUR WOMEN DELIBERATED FOR JUST 23 MINUTES MS WELLS NOW A FIRSTYEAR LAW STUDENT URGES WOMEN TO PUSH POTTY PARITY INTO NEW FRONTIERS THE NEW LAWS THAT PASSED WERE GREAT BUT THEY ONLY APPLIED TO NEW BUILDINGS OR MAJOR RENOVATIONS IN OLDER BUILDINGS SHE SAYS BUSINESSES NEED TO FEEL THE PRESSURE TO CHANGE OTHER BUILDINGS AS A PRACTICAL MATTER EVEN LEGISLATORS WHO ADVOCATE FAIRNESS AREN'T CERTAIN HOW TO ACHIEVE IT RECENT LAWS IN MARYLAND AND NEW YORK DEMAND EQUAL NUMBERS OF TOILETS FOR MEN AND WOMEN BUT MOST STATES WITH LOO LAWS REQUIRE MORE TOILETS FOR WOMEN IN AN EFFORT TO EQUALIZE WAITINGLINE LENGTHS CALIFORNIA IN FACT MANDATES A 41 RATIO IN SOME BUILDINGS TO BE SURE THERE ARE NAYSAYERS ONE MEN'SRIGHTS ADVOCATE ASKS WHETHER IT IS FAIR TO CONCENTRATE ON WOMEN'S RESTROOMS WHEN SOME MEN'S ROOMS STILL LACK DOORS ON THE STALLS WE SHOULD REALLY BRING MEN'S RESTROOMS UP TO THE CURRENT STANDARDS OF WOMEN'S BEFORE WE START ADDRESSING ANY ALLEGED DEFECTS IN WOMEN'S RESTROOMS SAYS HUGH NATIONS A BOARD MEMBER OF THE NATIONAL COALITION OF FREE MEN MR NATIONS LIKES TO SLAP GOLD MEN DESERVE STALL DOORS TOO STICKERS IN OFFENDING JOHNS COURTS HAVEN'T ADDRESSED THE STALLDOOR QUESTION AT LEAST NOT YET BUT THEY HAVE EXPLORED THE CONSTITUTIONAL DIMENSIONS OF RESTROOM EQUALITY A NEW YORK STATE COURT IN 1976 RULED THAT PAY TOILETS ARE UNFAIR TO WOMEN BECAUSE MEN CAN AVOID PAYING BY USING URINALS IN ANOTHER COURT CASE A FEDERAL APPEALS COURT IN CINCINNATI SIDED WITH A FEMALE CONSTRUCTION WORKER WHO WAS FIRED AFTER USING AN INDOOR RESTROOM THAT WAS OFFLIMITS TO CONSTRUCTION WORKERS THE COURT OVERTURNED A LOWERCOURT DECISION THAT FOUND THE FIRING JUSTIFIED EVEN THOUGH THE WORKPLACE'S PORTABLE TOILETS WERE SPLATTERED WITH SEWAGE THE PROBLEM WITH POTTY PARITY OF COURSE IS THAT IT CAN BE COSTLY INDEED A TEXAS MANUFACTURER IS PLEADING ECONOMIC HARDSHIP IN A PENDING SEXDISCRIMINATION LAWSUIT INVOLVING TOILETS IN THE CASE THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION HAS ACCUSED PROLINE CAP CO OF FIRING 30 WOMEN RATHER THAN ADDING A TOILET FRANKLIN SEARS AN ATTORNEY FOR THE BASEBALLCAP MAKER DECLINED TO COMMENT ON THE CASE ALTHOUGH THE COMPANY PREVIOUSLY SAID THAT IT FIRED MEN AS WELL THESE DAYS THOUGH SOME BUSINESSES ARE FALLING ON THE OTHER END OF THE SPECTRUM OFFERING UP A PLETHORA OF POTTIES FOR DENVER'S NEW COLORADO CONVENTION CENTER FOR EXAMPLE ARCHITECT CURT FENTRESS SEPARATED MEN'S AND WOMEN'S ROOMS WITH A MOVABLE WALL WHEN THE MOSTLY FEMALE INTRAVENOUS NURSES SOCIETY HITS TOWN IN APRIL THE CONVENTION CENTER CAN PRODUCE WOMEN'S ROOMS THAT ARE THREE TIMES BIGGER THAN THE MEN'S FOR A PREDOMINATELY MALE AMERICAN ASSOCIATION OF PETROLEUM GEOLOGISTS MEETING A FEW MONTHS LATER THE CENTER WILL REVERSE THE RATIO A PANEL OF THE AMERICAN INSTITUTE OF ARCHITECTS MEANWHILE IS BRAINSTORMING ABOUT DESIGNS FOR BETTER BATHROOMS SOME PROPOSALS CALL FOR UNISEX HANDWASHING AREAS OR UNISEX RESTROOMS SOME EUROPEAN COUNTRIES HAVE HAD THEM FOR DECADES OTHER IDEAS INCLUDE SEPARATE LOUNGES WHERE WOMEN CAN SMOKE PUT ON MAKEUP AND CHANGE DIAPERS REP PRENTISS WHO ULTIMATELY GOT A VIDEO COPY OF THE OHIO UNIVERSITY MARCHING BAND'S INAUGURAL PERFORMANCE CAN TAKE SOLACE IN THE FACT THAT HER PROPOSED LAW EASILY PASSED A COMMITTEE VOTE AND IS SCHEDULED TO GO BEFORE THE FULL HOUSE NEXT MONTH THE PROPOSED LAW IS VIEWED LARGELY AS COMIC RELIEF EVEN WITHIN HER OWN OFFICE SHE ADMITS BUT SHE ADDS WE'RE VERY SERIOUS ABOUT THIS THIS IS AN EQUITY ISSUE FOR WOMEN 9402240066 940224 BUSINESS BRIEF FIRST BANK SYSTEM INC US RENEWS ITS CONTRACT FOR HANDLING CREDIT CARDS FIRST BANK SYSTEM INC MINNEAPOLIS SAID THE FEDERAL GOVERNMENT RENEWED A CONTRACT UNDER WHICH GOVERNMENT EMPLOYEES ARE ISSUED VISA CARDS TO MAKE JOBRELATED PURCHASES THE BANKHOLDING COMPANY'S ROCKY MOUNTAIN BANKCARD SYSTEM AND COLORADO NATIONAL BANK SUBSIDIARIES HAVE BEEN ADMINISTERING THE PROGRAM FOR THE GENERAL SERVICES ADMINISTRATION SINCE THE GOVERNMENT IMPLEMENTED IT IN 1989 CURRENTLY ABOUT 65000 GOVERNMENT EMPLOYEES HOLD SUCH PURCHASING CARDS WHICH ARE USED TO MAKE ROUTINE SMALL PURCHASES SUCH CARDS STREAMLINE THE PROCUREMENT PROCESS ELIMINATING PAPERWORK ASSOCIATED WITH TAKING OUT AN ADVANCE THEN BEING REIMBURSED FOR EXAMPLE AND MAKE IT EASIER FOR THE GOVERNMENT TO TRACK MAINTENANCE REPAIR AND ROUTINE OPERATING OUTLAYS FIRST BANK SAID IT PROCESSED ABOUT 535 MILLION IN GOVERNMENT PURCHASES LAST YEAR 9402240065 940224 MONEYFUND YIELDS ROSE IN LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT TO 281 FROM 279 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 277 FROM 275 WHILE THE 30DAY SIMPLE YIELD ROSE TO 273 FROM 271 THE 30DAY COMPOUND YIELD INCREASED TO 276 FROM 274 ASSETS OF 644 TAXABLE FUNDS WHICH INCLUDE TWO MORE THAN THE PREVIOUS WEEK ROSE BY 569 BILLION TO 47876 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 372 BILLION OF THE TOTAL INFLOW WHILE INDIVIDUAL INVESTORS PUT IN 197 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY TWO DAYS TO 54 DAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE DECLINE IN THE FUNDS' AVERAGE MATURITY TO MONEYFUND MANAGERS' ANTICIPATION OF MORE INCREASES IN SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD CREPT TO 198 FROM 197 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 309 FOR SOMEONE PAYING 36 IN TAXES AND TO 328 FOR THOSE WHO PAY 396 ASSETS OF 345 TAXEXEMPT FUNDS WHICH INCLUDE TWO MORE THAN THE PREVIOUS WEEK ROSE BY 128 BILLION TO 11279 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 55 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9402240064 940224 BUSINESS BRIEF NOVELL INC FIRSTPERIOD PROFIT ROSE 3 MEETING ANALYSTS' ESTIMATES NOVELL INC SAID NET INCOME FOR ITS FIRST QUARTER ENDED JAN 29 EDGED UP ABOUT 3 TO 728 MILLION OR 23 CENTS A SHARE THE COMPUTERNETWORKING CONCERN'S EARNINGS WERE IN LINE WITH ANALYSTS' ESTIMATES BUT NOVELL STOCK DROPPED CLOSING AT 23625 DOWN 875 CENTS IN TRADING ON THE NASDAQ STOCK MARKET REVENUE FOR THE PERIOD JUMPED 20 TO 3114 MILLION FROM 2602 MILLION A YEAR EARLIER IN THE YEAREARLIER QUARTER NOVELL EARNED 709 MILLION OR 23 CENTS A SHARE IN THE LATEST PERIOD NOVELL IN PROVO UTAH HAD 3139 MILLION SHARES OUTSTANDING COMPARED WITH 3109 MILLION SHARES OUTSTANDING A YEAR AGO NOVELL SAID NET INCOME WAS HELD DOWN BY EXPENSES RELATED TO SEVERAL ACQUISITIONS THOSE COSTS CONTRIBUTED TO A MARKED DECLINE IN NOVELL'S OPERATING PROFIT MARGIN WHICH DIPPED TO 32 FROM 39 A YEAR EARLIER 9402240063 940224 BUSINESS BRIEF CROSSLAND FEDERAL SAVINGS BANK BOARD CLEARS SECOND PHASE OF PLAN FOR PUBLIC OFFERING CROSSLAND FEDERAL SAVINGS BANK NEW YORK SAID ITS DIRECTORS APPROVED THE SECOND PHASE OF A PLAN UNDER WHICH THE FORMERLY INSOLVENT BANK WILL GO PUBLIC UNDER THE PLAN THE BANK WILL CREATE A NEW PARENT COMPANY BROOKLYN BANCORP INC WHICH THEN WILL SELL COMMON SHARES TO THE PUBLIC THE PLAN MUST BE APPROVED BY SHAREHOLDERS AND REGULATORS CROSSLAND WHICH HAS ASSETS OF 45 BILLION SOLD 12 MILLION SHARES TO INSTITUTIONAL INVESTORS LAST YEAR UNDER A PLAN OVERSEEN BY REGULATORS THESE SHARES CAN'T BE TRADED PUBLICLY UNDER THE PLAN'S SECOND PHASE THESE SHARES WOULD BE CONVERTED INTO SHARES IN THE NEW PARENT COMPANY WHICH WOULD BE PUBLICLY TRADED THE BANK WOULD CONTINUE TO USE THE CROSSLAND NAME FOR BRANCHES CROSSLAND WAS TAKEN OVER BY REGULATORS TWO YEARS AGO AFTER IT WAS DECLARED INSOLVENT 9402240062 940201 REVIEW & OUTLOOK EDITORIAL MEET THE CLEAN AIR MONSTER THE MORE WE BECOME FAMILIAR WITH THE CLEAN AIR ACT AMENDMENTS OF 1990 THE MORE WE'RE INCLINED TO THINK IT'S ONE OF THE MORE MONSTROUS PIECES OF FEDERAL LEGISLATION PASSED IN OUR ERA IT'S WORTH ONE'S ATTENTION IF FOR NO OTHER REASON THAN THAT IT TYPIFIES SO WELL THE NATURE OF MUCH MODERN LEGISLATION BEYOND THE GOOGOO NAME THE PUBLIC ACTUALLY KNOWS LITTLE IF ANYTHING ABOUT THE LAW'S ABSTRUSE DETAILS AND THE PUBLIC IS GOING TO HAVE NEXT TO NOTHING TO DO WITH ITS IMPLEMENTATION AND NOTHING WHATSOEVER TO SAY ABOUT ITS COSTS WHICH THEY WILL PAY FOR INSTANCE THE LAW MAY INCREASE THE COST OF A NEW CAR IN MANY STATES BY 1000 TODAY 13 BUREAUCRATS WILL VOTE ON THAT THEY MAKE UP SOMETHING CALLED THE OZONE TRANSPORT COMMISSION THE CLEAN AIR AMENDMENTS CREATED THE OZONE TRANSPORT COMMISSION WHICH CONSISTS OF THE ENVIRONMENTAL OFFICERS OF 12 STATES IN THE EAST FROM VIRGINIA TO MAINE PLUS THE DISTRICT OF COLUMBIA THE CONGRESSIONAL STAFFERS AND OTHERS WHO WROTE THE CLEAN AIR AMENDMENTS ASSIGNED SOME SMOGREDUCTION GOALS WITH DEADLINES AND THEN GAVE THE COMPLIANCE JOB TO THE STATES WHICH IN REALITY MEANS THEIR RESPECTIVE UNELECTED ENVIRONMENTAL BUREAUCRACIES TODAY'S VOTE IS AN INTERESTING AND CLEVER EXAMPLE OF HOW THE PROCESS WORKS ONCE THE LAW HAS BEEN PASSED THE STATE OFFICERS ARE VOTING ON WHETHER THEY SHOULD ASK THE US ENVIRONMENTAL PROTECTION AGENCY TO PROPOSE A FEDERAL RULE THAT WOULD REQUIRE THE SALE OF CALIFORNIATYPE LOW EMISSION VEHICLES IN THEIR STATES AND BEYOND THIS VOTE ALWAYS LIES THE POSSIBILITY OF LITIGATION FROM THE SIERRA CLUB AND HENRY WAXMAN TO ENLIST FEDERAL JUDGES IN THE PROCESS CLEANAIR MERITS ASIDE WHAT FASCINATES US ABOUT THIS IS HOW THE PROCESS MAKES IT NEARLY IMPOSSIBLE TO IDENTIFY WHO IS RESPONSIBLE OR ACCOUNTABLE FOR ANYTHING HERE BEYOND THE ORIGINAL VOTE IN CONGRESS FOR CLEAN AIR IN FACT THE VOTE TODAY BY THE OZONE TRANSPORT COMMISSION IS BEING HOTLY CONTESTED BUT IT'S UNLIKELY THAT ANY CITIZEN OF THESE 12 STATES OTHER THAN THE IMMEDIATE COMBATANTS KNOWS MUCH OF ANYTHING ABOUT THE BATTLE OVER WHETHER TO MAKE PEOPLE PAY PERHAPS 1000 EXTRA FOR LOW EMISSION CARS THAT'S THE AUTO INDUSTRY'S EDUCATED GUESS OF INTRODUCING WHAT'S KNOWN AS THE CALIFORNIA CAR TO THE NORTHEAST BUT FEW OBSERVERS DOUBT THAT PUTTING THE COMPLIANCE BURDENS ON NEW CARS WOULD INCREASE THEIR PRICE NOT TO MENTION THE ADDED COST OF REFORMULATED GASOLINE TO RUN THEM LAST JULY SCIENCE MAGAZINE PUBLISHED AN ARTICLE ON THIS SUBJECT BY FOUR SPECIALISTS ON EMISSIONS FROM MIT BERKELEY CAL TECH AND THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH WE PARTICULARLY LIKED THE AUTHORS' IRONIC DESCRIPTION OF THE LAW'S FUEL REQUIREMENTS OXYGENATE REQUIREMENTS IN THAT ACT WERE ARBITRARY IN A SCIENTIFIC SENSE AS DATA ARE BECOMING AVAILABLE THE COMPLEX PROBLEM OF FUEL EMISSIONS AND ATMOSPHERIC REACTIVITY IS BECOMING APPARENT THE GOOD NEWS IS THAT OUR FEDERAL SYSTEM STILL TRIES TO RESTRAIN HOW FAR CONGRESS CAN DRIVE WITH THE LIGHTS OFF VIRGINIA DELAWARE NEW HAMPSHIRE NEW JERSEY AND PENNSYLVANIA HAVE REPORTEDLY CONCLUDED THAT THERE MAY BE MORE COSTEFFECTIVE APPROACHES THAN THE SQUEAKY CLEAN CALIFORNIA CAR NEW JERSEY'S NEW GOVERNOR CHRISTIE WHITMAN HAS ALREADY ORDERED HER ENVIRONMENTAL NOMINEE TO VOTE TODAY FOR A DELAY A REPORT BY THE NEW JERSEY INSTITUTE OF TECHNOLOGY PREDICTED MILLIONS OF DOLLARS IN ADDED COSTS THE SCIENCE MAGAZINE AUTHORS SAID THE EVERMORE EXPENSIVE FUEL RECIPES WERE SIMPLY A SUBSIDY FOR THE SMALL NUMBER OF DIRTY OLD CARS THAT ACTUALLY CAUSE THE SMOG PROBLEM THE MOST AGGRESSIVE ENVIRONMENTALISTS AND BUREAUCRATS HAVE A STOCK ANSWER NOW TO COSTBENEFIT OBJECTIONS BETTER SAFE THAN SORRY OUR OWN VIEW WOULD BE THAT THE CLEAN AIR AMENDMENTS ARE A CASE HISTORY OF POLICY HUBRIS AGAIN AS IS BECOMING INCREASINGLY TYPICAL OF MODERN LEGISLATING THERE SEEMS TO HAVE BEEN AN ASSUMPTION HERE THAT YES THE LAW IS GOING TO IMPOSE SIGNIFICANT COSTS BUT THE DETAILS ARE TOO ARCANE TO GENERATE WIDE PUBLIC OPPOSITION AND YOU CAN PUSH IT ALL THROUGH ON A WAVE OF GOOD IF VAGUE INTENTIONS THEY'VE LARGELY BEEN RIGHT ABOUT THAT TOO BUT IF THESE 12 BUREAUCRATS PLUS THE DISTRICT INDEED VOTE TODAY TO ASK THE EPA TO MANDATE SIGNIFICANTLY MORE EXPENSIVE NEW CARS VIA ADMINISTRATIVE FIAT THERE MAY BE A BACKLASH THIS TIME THAT DOESN'T MEAN AN ANGRY PUBLIC WILL WIN THE CLEAN AIR MONSTER WAS VOTED INTO LAW BACK IN 1990 CONGRESS AT LEAST A DEMOCRATICALLY CONTROLLED CONGRESS DOESN'T MUCH LIKE TO REVISIT ITS CREATIONS FOR PURPOSES OF SHRINKING THEM BUT THE CLEAN AIR MONSTER WILL BE WORTH REMEMBERING AS CONGRESS UNDERTAKES THE CLINTONS' HEALTH CARE PLAN THE SUBJECT IS DIFFERENT THE PROCESS IS THE SAME SEE RELATED LETTER CUTTING POLLUTION HELPS CREATE JOBS WSJ FEB 24 1994 9402010047 YY94 MM02 9402240061 940224 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THERE ARE SEVERAL PLACES IN THIS NEWSPAPER WHERE READERS CAN FIND INFORMED INTELLIGENT REPORTING AND ANALYSIS ABOUT THE TAX LAWS AND STRATEGIES FOR PAYING LOWER TAXES THIS ISN'T ONE OF THEM I THINK ABOUT TAXES AS LITTLE AS POSSIBLE BUT I'VE SPENT MANY HOURS LATELY TRYING OUT THE FOUR MOST POPULAR COMPUTER TAX PROGRAMS FOR 1993 RETURNS SO IF YOU WANT AN OPINION ABOUT WHICH OF THEM MAKES IT EASIEST TO DO YOUR TAXES READ ON HERE ARE THE CONTENDERS TURBOTAX BY CHIPSOFT AT 40 AND TAXCUT BY MECA SOFTWARE AT 35 ARE THE LONGTIME LEADERS PERSONAL TAX EDGE BY PARSONS TECHNOLOGY AT 24 IS A PERENNIALLY SOLID IF UNIMAGINATIVE PERFORMER AND CASIMPLY TAX BY COMPUTER ASSOCIATES IS A REVISED AND REPACKAGED REVISION OF AN OLDER MINOR PRODUCT BEING OFFERED SUPPOSEDLY FOR FREE IF YOU CONSIDER A 995 HANDLING CHARGE TO BE FREE EACH OF THESE PROGRAMS COMES IN VERSIONS FOR PLAIN IBMCOMPATIBLE COMPUTERS RUNNING JUST THE DOS OPERATING SYSTEM AND FOR THOSE RUNNING MICROSOFT'S WINDOWS SOFTWARE TAXCUT AND TURBOTAX ALSO HAVE VERSIONS FOR THE APPLE MACINTOSH COMPUTER I FOCUSED ON THE WINDOWS VERSIONS WHICH TEND TO HAVE THE MOST COMPLETE SET OF FEATURES IT'S IMPORTANT TO REMEMBER THAT THESE TAX SOFTWARE PACKAGES ARE MEANT TO HELP COMPLETE RELATIVELY UNCOMPLICATED TAX FILINGS MAKING A TRYING CHORE EASIER THEY FILL OUT AND PRINT STANDARD INTERNAL REVENUE SERVICE AND STATE TAX FORMS BASED ON INFORMATION YOU PROVIDE BY TAKING ADVANTAGE OF THE COMPUTER'S MATHEMATICAL PROWESS EACH OFFERS A CHOICE OF FILLING OUT FORMS AND RELATED WORKSHEETS ON THE SCREEN OR OF ANSWERING QUESTIONS IN AN INTERVIEW FORMAT AND LETTING THE SOFTWARE ENTER THE ANSWERS ON THE FORMS HOWEVER SOFTWARE ISN'T A SUBSTITUTE FOR A TAX ACCOUNTANT OR ADVISER THE PROGRAMS OFFER SOME GENERAL TAX TIPS BUT THEY CAN'T HELP YOU MAKE TRICKY JUDGMENTS ON HOW TO TREAT VARIOUS TYPES OF INCOME AND SPENDING INDEED THEY TYPICALLY GUARANTEE ONLY THAT THE TAX RETURNS THEY PREPARE WILL BE MATHEMATICALLY ACCURATE NOT LEGALLY SOUND OR FINANCIALLY CLEVER THAT SAID HERE'S A QUICK RUNDOWN ON THE FOUR CONTENDERS MY VOTE THIS YEAR GOES TO TAXCUT FOR WINDOWS WHICH IN MY VIEW DOES MORE THAN ANY OTHER PACKAGE TO MAKE PAYING TAXES EASY LAST YEAR I THOUGHT TAXCUT AND TURBOTAX WERE FAIRLY EVENLY MATCHED BUT MECA HAS PUT TAXCUT AHEAD WITH A HOST OF ENHANCEMENTS AND DESIGN CHANGES USERS ARE GREETED WITH A COLORFUL SERIES OF LARGE GRAPHICS COLLECTIVELY CALLED THE NAVIGATOR INSTEAD OF BEING LABELED WITH ARCANE TAX TERMS THEY ARE LABELED IN PLAIN ENGLISH IE PERSONAL INFO AND FOR SELFEMPLOYED CLICKING ON ANY OF THEM BRINGS UP A CHOICE OF ANSWERING AN INTERVIEW OR FILLING OUT A FORM EVEN IF YOU PICK THE INTERVIEW YOU CAN SEE A LIVE FORM AT THE BOTTOM OF THE SCREEN AT ALL TIMES AND SWITCH TO IT INSTANTLY TO ADD NUMBERS TAXCUT EXCELS AT THIS VISUAL PRESENTATION OF DATA WHEN YOU IMPORT FIGURES FROM LAST YEAR'S RETURN OR FROM A PERSONALFINANCE PROGRAM IT LETS YOU SEE THEM RIGHT NEXT TO THE CORRESPONDING CURRENTYEAR ENTRY THE PROGRAM RUNS CRISPLY AND PRINTS PAPER FORMS QUICKLY IT EVEN HAS A FEATURE TO DELETE ITSELF FROM YOUR COMPUTER MY ONLY GRIPES ABOUT TAXCUT ARE THAT IT STILL LACKS A LITTLE SUMMARY WINDOW THAT CONSTANTLY UPDATES THE TAX YOU OWE AS YOU WORK ON YOUR RETURN AND ITS STATE TAX PRINTOUTS UNLIKE THE FEDERAL ONES AREN'T ACCEPTED FOR FILING SO YOU HAVE TO COPY THEM BY HAND ONTO BLANK STATE FORMS TURBOTAX FOR WINDOWS IS A PERFECTLY FINE PACKAGE BUT IT HASN'T CHANGED MUCH SINCE LAST YEAR IT NOW HAS FALLEN BEHIND TAXCUT IN EASE OF USE AND IT IS SLOWER CHIPSOFT HAS SIMPLIFIED SOME PROCESSES AND TERMINOLOGY AND WORKED TO MAKE ITS STATE PRINTOUTS ACCEPTABLE FOR FILING UNLIKE TAXCUT IT PROVIDES A CONSTANTLY UPDATED SUMMARY OF TAXES OWED BUT THE ONLY SIGNIFICANT NEW FEATURE IS A DEDUCTION FINDER WHICH GOES OVER A COMPLETED RETURN BEFORE YOU FILE IT AND SUGGESTS DEDUCTIONS YOU MIGHT HAVE MISSED PARSONS' PERSONAL TAX EDGE FOR WINDOWS IS A SOLID NOFRILLS PACKAGE THAT GETS THE JOB DONE FOR THOSE NEEDING LESS HELP IT COSTS A BIT LESS THAN TAXCUT AND TURBOTAX AND THROWS IN SPECIAL CALCULATORS FOR COMPUTING DEPRECIATION AND PROJECTING LOAN COSTS AND SAVINGS GROWTH CASIMPLY TAX IS THE CHEAPEST AT 995 AND THE PRICE IS ABOUT RIGHT IT'S THE WEAKEST OF THE FOUR IN MY VIEW WITH CONFUSING SCREEN DISPLAYS I ALSO FOUND IT WASN'T ABLE TO ACCEPT NUMBERS LONGER THAN EIGHT CHARACTERS COUNTING PERIODS AND COMMAS THUS YOU CAN'T ENTER AN INCOME OF SAY 11234598 YOU HAVE TO ROUND IT YOURSELF BEFORE TYPING IT IN THE TWO TOP PROGRAMS THIS YEAR OFFER CDROM BASED VERSIONS WITH MULTIMEDIA CONTENT AGAIN I FAVOR TAXCUT'S APPROACH CHIPSOFT SEEMED TO THROW A BUNCH OF PROGRAMS ONTO ITS TURBOTAX PLATTER INCLUDING A LOT OF IRS MANUALS THE JK LASSER TAX GUIDE AND TAX TIPS BUT THEY AREN'T WELL INTEGRATED AND READING THE LONG TEXT PORTIONS REQUIRES A LOT OF ANNOYING SCROLLING AND ZOOMING IN CONTRAST TAXCUT'S MULTIMEDIA EDITION ADDS THINGS DIRECTLY TO THE MAIN PROGRAM INCLUDING SPOKEN DIRECTIONS AND 45 DOWNTOEARTH TAXTIP VIDEO CLIPS FROM DAN CAINE WHO WROTE THE PROGRAM NOW THAT YOU KNOW WHAT TAX SOFTWARE TO USE SKIM THE REST OF THE PAPER TO SEE HOW YOU MIGHT ACTUALLY SAVE SOME MONEY THIS YEAR LORD KNOWS I HAVE NO IDEA 9402240060 940224 MACLEAN HUNTER IS DEALT SETBACK ON ROGERS BID CLOSING OF TAX LOOPHOLE HURTS EFFORTS TO GIVE HOLDERS ALTERNATE PLAN BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE CANADIAN GOVERNMENT DEALT A BLOW TO MACLEAN HUNTER LTD'S EFFORTS TO OFFER SHAREHOLDERS AN ALTERNATIVE TO ROGERS COMMUNICATIONS INC'S 279 BILLIONCANADIANDOLLAR US208 BILLION BID TO ACQUIRE THE COMPANY IN TUESDAY'S BUDGET THE GOVERNMENT SAID IT WILL CLOSE AN OBSCURE TAX LOOPHOLE THAT MACLEAN HUNTER HAD PLANNED TO USE TO MAXIMIZE PROCEEDS FROM ANY SALE OF ITS US CABLE ASSETS THE TORONTO CABLE TELEVISION PRINTING AND PUBLISHING CONCERN HAD HOPED TO SPIN OFF THOSE HOLDINGS INTO A SEPARATE COMPANY WHICH COULD THEN PROCEED TO SELL THEM UNDER THE SOCALLED BUTTERFLY TAX PROVISIONS WITHOUT INCURRING A BIG CAPITAL GAINS TAX CERTAINLY THIS IS POTENTIALLY A VERY SERIOUS SETBACK FOR THE FOLKS AT MACLEAN HUNTER SAID BARRY GRUMAN AN ANALYST AT FIRST MARATHON SECURITIES IN MONTREAL IT'S LOOKING MORE AND MORE AS THOUGH THIS IS A DEAL THAT WILL BE DONE RIGHT AT ABOUT C17 A SHARE AS REPORTED ROGERS IS OFFERING C17 A SHARE FOR MACLEAN HUNTER A BID THAT MACLEAN HUNTER'S BOARD HAS DESCRIBED AS INADEQUATE IN A MESSAGE TO SHAREHOLDERS TO BE MAILED TODAY MACLEAN HUNTER DIRECTORS HAD PLANNED TO ADDRESS IN SOME DETAIL THE WAYS IN WHICH THEY COULD GENERATE MORE VALUE FOR SHAREHOLDERS THAN THE ROGERS OFFER DOES ROGERS IS A TORONTOBASED CABLE TV AND TELECOMMUNICATIONS CONCERN TOPPING THE LIST OF OPTIONS AVAILABLE TO MACLEAN HUNTER WAS EXPECTED TO BE A SPECIAL DIVIDEND TO SHAREHOLDERS IN THE WAKE OF A SALE OF THE US CABLE ASSETS FOR WHICH THE COMPANY ALREADY IS SEEKING BUYERS BUT WITHOUT BEING ABLE TO USE THE BUTTERFLY MANEUVER TO PROTECT THE COMPANY FROM CAPITAL GAINS TAXES MACLEAN HUNTER COULD FACE A TAX BURDEN THAT ANALYSTS ESTIMATE AT ANYWHERE BETWEEN C200 MILLION AND C400 MILLION ON A SALE OF C15 BILLION TO C175 BILLION ROBERT FURSE CHIEF FINANCIAL OFFICER OF MACLEAN HUNTER SAID THE COMPANY STILL PLANS TO ISSUE A RESPONSE TO SHAREHOLDERS BUT SAID IT NOW WILL BE MORE GENERAL IN NATURE IT'S JUST BEING WRITTEN NOW AND IT'S BEING REVISED HOUR BY HOUR MR FURSE SAID HE DECLINED TO COMMENT ON THE CONTENT OF THE RESPONSE ADDING THAT THE COMPANY AND ITS FINANCIAL ADVISERS ARE STUDYING THE CHANGES TO THE BUTTERFLY STRATEGY ANNOUNCED IN THE BUDGET OTHER STRATEGIES THAT MACLEAN HUNTER IS EXPECTED TO PURSUE INCLUDE NEW DEBT FINANCING IN ORDER TO PAY A SPECIAL DIVIDEND TO SHAREHOLDERS AND SELLING OTHER ASSETS INCLUDING THE CANADIAN CABLE OPERATIONS WHICH ARE THE COMPANY'S MAIN ATTRACTION FOR ROGERS AS REPORTED ROGERS HAS ASKED THE SUPREME COURT OF ONTARIO TO ORDER MACLEAN HUNTER TO GIVE IT ACCESS TO ANY DATA BEING PROVIDED TO POTENTIAL BIDDERS FOR THESE OPERATIONS AN INABILITY TO USE THE BUTTERFLY TAX LOOPHOLE WOULD MEAN MACLEAN HUNTER DIRECTORS WOULD BE UNDER PRESSURE TO COME UP WITH ADDITIONAL VALUE IN OTHER PARTS OF ITS BUSINESS THAT'S GOING TO BE TOUGH TO DO MR GRUMAN SAID IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY MACLEAN HUNTER CLOSED AT C1650 A SHARE OFF 25 CANADIAN CENTS ROGERS CLASS B SHARES ROSE 375 CANADIAN CENTS TO C22125 GREG BOEHMER TAX PARTNER AT THE MISSISSAUGA ONTARIO OFFICE OF ERNST & YOUNG AN ACCOUNTING FIRM SAID THAT UNDER THE NEW TAX RULES A COMPANY WON'T BE PERMITTED TO SPIN OFF ASSETS INTO A SEPARATE CONCERN IF THE PURPOSE OF THE EXERCISE IS TO SELL THAT DIVISION TO A THIRD PARTY IF YOU'VE GOT TWO SHAREHOLDERS WHO WANT TO DIVIDE UP THE BUSINESS THAT'S FINE BUT IF YOU'RE DOING THIS TO FACILITATE AN ASSET SALE FORGET IT MR BOEHMER SAID THE LOOPHOLE HAS BEEN CLOSED FOR ALL COMPANIES THAT HADN'T A LEGAL COMMITMENT TO PROCEED WITH SUCH A TRANSACTION PRIOR TO TUESDAY'S BUDGET ANNOUNCEMENT WHILE MACLEAN HUNTER SOUGHT AN EARLY RULING ON ITS PROPOSED STRATEGY FROM THE GOVERNMENT LATE LAST WEEK IT HADN'T COMMITTED ITSELF TO THAT COURSE OF ACTION ROGERS HAS SAID ITS OWN TAX POSITION WOULD ALLOW IT TO SELL THE US CABLE ASSETS WITHOUT INCURRING A BIG CAPITAL GAINS LIABILITY 9402240059 940224 HOW SCHOOL CHOICE IMPROVES PUBLIC SCHOOLS BY ROBERT J BARRO SCHOOLCHOICE PROGRAMS THAT INCLUDE PRIVATE SCHOOLS ARE A PROMISING WAY TO DELIVER IMPROVED EDUCATION ESPECIALLY FOR CHILDREN FROM POOR FAMILIES EXPERIMENTS SUCH AS MILWAUKEE'S HAVE SHOWN SOME SUCCESS BUT SYSTEMS THAT INCLUDE ANY FUNDING FOR PRIVATE SCHOOLS ARE RARE NOT COINCIDENTALLY IN 1990 ONLY 12 OF ELEMENTARY AND SECONDARY STUDENTS ATTENDED PRIVATE SCHOOLS WITH ONLY 12 OF THE PRIVATE ENROLLMENT IN NONSECTARIAN INSTITUTIONS 8 AT THE PRIMARY LEVEL AND 14 AT THE SECONDARY LEVEL CATHOLIC SCHOOLS WERE THE DOMINANT PRIVATE PROVIDER WITH ABOUT 70 OF OVERALL PRIVATE ENROLLMENT THE OVERWHELMING CHOICE OF PUBLIC OVER PRIVATE EDUCATION DOES NOT OF COURSE MEAN THAT MOST PEOPLE VIEW PUBLIC SCHOOLING AS SUPERIOR VARIOUS STUDIES NOTABLY THOSE BY SOCIOLOGIST JAMES COLEMAN AND HIS ASSOCIATES HAVE FOUND THAT STUDENTS WITH A GIVEN LEVEL OF NATIVE ABILITY DO BETTER WHEN THEY ATTEND PRIVATE INSTITUTIONS ESPECIALLY CATHOLIC SCHOOLS IN INNER CITIES WHAT SUSTAINS THE DOMINANCE OF PUBLIC SCHOOLS IS THAT INDIVIDUAL CONSUMERS REGARD THE PUBLIC OPTION AS FREE AND THE PRIVATE ONE AS EXPENSIVE CATHOLIC SCHOOLS ARE ABLE TO THRIVE IN SPITE OF THIS OBSTACLE BECAUSE CHURCH SUBSIDIES MAINTAIN LOW LEVELS OF TUITION NONSECTARIAN SCHOOLS INCLUDING ELITE PLACES SUCH AS ANDOVER AND ST PAUL'S TYPICALLY HAVE TO RELY ON HIGH LEVELS OF TUITION AND LIMITED AMOUNTS OF FINANCIAL AID AND THEREFORE CAN SERVE ONLY A SMALL PRIVILEGED MARKET THE CENTRAL ELEMENT OF SCHOOLCHOICE PLANS IS THE USE OF VOUCHERS OR TAX CREDITS TO LEVEL THE PLAYING FIELD BETWEEN PUBLIC AND PRIVATE SCHOOLS VOUCHERS WOULD INCREASE THE DEMAND FOR PRIVATE EDUCATION AND HENCE IMPROVE THE AVERAGE PERFORMANCE OF GRADUATES THE MOST DRAMATIC CHANGE WOULD BE PREDICTED FOR POOR FAMILIES WHO NOW TYPICALLY LACK ACCESS TO PRIVATE SCHOOLS OR HIGHQUALITY PUBLIC SCHOOLS A SUBSTANTIAL PART OF THE OPPOSITION TO SCHOOLCHOICE PLANS COMES FROM TWO GROUPS WELLOFF SUBURBANITES AND PUBLICSCHOOL EMPLOYEES SUBURBANITES ARE USUALLY AT LEAST SOMEWHAT SATISFIED WITH THEIR LOCAL PUBLIC SCHOOLS AND DO NOT WISH TO PAY HIGHER TAXES TO GIVE MONEY TO PEOPLE WHO ALREADY USE PRIVATE SCHOOLS PUBLICSCHOOL EMPLOYEES DO NOT WANT TO LOSE AN ENTRENCHED POSITION THAT ENSURES A REASONABLE INCOME EVEN WHEN THEIR PERFORMANCE IS BAD FOR THESE OPPOSITION GROUPS A KEY CONCERN IS HOW A SCHOOLCHOICE PLAN AND THE CONSEQUENT EXPANSION OF PRIVATE ALTERNATIVES WOULD AFFECT THE PUBLIC SCHOOLS WOULD THE QUALITY AND LEVELS OF FUNDING DIMINISH OR WOULD THE INCREASED COMPETITION FORCE THE PUBLIC SCHOOLS TO DO BETTER RECENT RESEARCH BY CAROLINE MINTERHOXBY IN HER DOCTORAL DISSERTATION AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY DO PRIVATE SCHOOLS PROVIDE COMPETITION FOR PUBLIC SCHOOLS OFFERS EVIDENCE ON THIS ISSUE THE MAIN INFORMATION IN HER STUDY COMES FROM THE INTERACTION BETWEEN AN AREA'S USE OF PRIVATE SCHOOLS ESPECIALLY CATHOLIC SCHOOLS AND THE QUALITY OF PUBLIC EDUCATION THE INFORMATION IN THESE DATA IS BETTER THAN THAT PROVIDED BY EXISTING SCHOOLCHOICE PROGRAMS BECAUSE IN THE LATTER CASE IT IS HARD TO DISCERN LONGRUN RESPONSES TO EXPERIMENTS SUCH AS THE ONE IN MILWAUKEE THAT ARE RELATIVELY NEW AND PERCEIVED AS TEMPORARY MOREOVER EXISTING SCHOOLCHOICE PLANS TEND TO CONTAIN SERIOUS RESTRICTIONS ON THE OPTIONS OF SCHOOLS AND STUDENTS THE KEY CHALLENGE IS TO ISOLATE THE EFFECT OF GREATER AVAILABILITY OF PRIVATE SCHOOLS ON THE PERFORMANCE OF THE PUBLIC SCHOOLS THIS WORK IS A CHALLENGE BECAUSE THE SIMPLE RELATION BETWEEN AN AREA'S PRIVATESCHOOL USE AND THE QUALITY OF THE PUBLIC SCHOOLS COULD IN THEORY BE POSITIVE OR NEGATIVE FIRST IF AN AREA'S PUBLIC SCHOOLS ARE PERFORMING BADLY THEN MORE FAMILIES WOULD BE MOTIVATED TO USE PRIVATE SCHOOLS THIS RESPONSE TENDS TO GENERATE A NEGATIVE RELATION BETWEEN PUBLICSCHOOL QUALITY AND PRIVATESCHOOL USE SECOND IF AN AREA'S FAMILIES ARE WEALTHIER AND BETTER EDUCATED THEN PRIVATESCHOOL USE AND PUBLICSCHOOL QUALITY ARE BOTH LIKELY TO BE HIGHER THIS INTERACTION TENDS TO GENERATE A POSITIVE RELATION BETWEEN PUBLICSCHOOL QUALITY AND PRIVATESCHOOL USE FINALLY IF AN INCREASED AVAILABILITY OF PRIVATE SCHOOLS PROVIDES COMPETITION THAT MOTIVATES THE PUBLIC SCHOOLS TO PERFORM MORE EFFICIENTLY THIS CREATES A POSITIVE RELATIONSHIP IT IS THIS RELATION THAT WE WOULD LIKE TO MEASURE IF IT EXISTS THE MINTERHOXBY STUDY SHOWS HOW CROSSCOUNTY DIFFERENCES IN THE COSTS OF PROVIDING PRIVATE EDUCATION AFFECT THE QUALITY OF PUBLIC SCHOOLS IN PRACTICE THE US EXPERIENCE DICTATES A RELIANCE ON INFORMATION ABOUT SECTARIAN PRIVATE SCHOOLING THE COST DIFFERENCES FOR OPERATING THESE SECTARIAN SCHOOLS COME FROM VARIATIONS ACROSS COUNTIES IN THE POPULATION DENSITY OF CATHOLICS OR OF OTHER RELIGIOUS DENOMINATIONS THAT RUN SIGNIFICANT NUMBERS OF PRIVATE SCHOOLS THE KEY CONCLUSION IS THAT GREATER USE OF PRIVATE SCHOOLS DRIVEN BY DIFFERENCES IN COSTS LEADS TO IMPROVED PERFORMANCE BY PUBLICSCHOOL STUDENTS AND TO GREATER PERPUPIL SPENDING IN THE PUBLIC SCHOOLS THESE RESULTS REMAIN TRUE AFTER ADJUSTING FOR AN ARRAY OF INDIVIDUAL AND COUNTY DIFFERENCES INCLUDING LEVELS OF INCOME AND PARENTAL EDUCATION AND A PERSON'S RELIGION AND RACE ONE FINDING IS THAT AN INCREASE OF 10 PERCENTAGE POINTS IN THE SHARE OF A COUNTY'S ENROLLMENT IN PRIVATE SECONDARY SCHOOLS ADDS 03 YEARS TO THE HIGHEST GRADE COMPLETED BY THE AVERAGE PUBLICSCHOOL STUDENT BY AGE 24 THIS INCREASE IN THE SHARE OF PRIVATE ENROLLMENT IS ALSO ESTIMATED TO RAISE A PUBLICSCHOOL STUDENT'S PROBABILITY OF RECEIVING A HIGHSCHOOL DIPLOMA BY AGE 19 BY 2 AND TO INCREASE THE WAGE EARNED BY THE AVERAGE PUBLICSCHOOL STUDENT AT AGE 24 BY 5 PARTLY BECAUSE THE STUDENT IS MORE LIKELY TO MOVE TO A MORE PROSPEROUS AREA AND PARTLY BECAUSE THE STUDENT'S POSITION IN THE EARNINGS DISTRIBUTION IMPROVES THUS THE PRESENCE OF PRIVATE ALTERNATIVES MEANS THAT THE STUDENTS WHO REMAIN IN THE PUBLIC SCHOOLS ACHIEVE AT HIGHER LEVELS THE DATA ALSO SHOW THAT GOVERNMENTS RESPOND TO GREATER COMPETITION FROM PRIVATE SCHOOLS BY RAISING TEACHERS' SALARIES AND OVERALL SPENDING PER STUDENT IN THE PUBLIC SCHOOLS AN INCREASE BY 10 PERCENTAGE POINTS IN THE SHARE OF A COUNTY'S ENROLLMENT IN PRIVATE SECONDARY SCHOOLS IS ESTIMATED TO RAISE THE STARTING SALARY FOR A TEACHER WITH A BA BY 460 IN PUBLIC SECONDARY SCHOOLS AND TO RAISE PERPUPIL SPENDING IN THESE SCHOOLS BY 340 ALL MEASURED IN 1980 DOLLARS HENCE AT LEAST THE PUBLICSCHOOL TEACHERS WHO RETAIN THEIR POSITIONS PRESUMABLY THE MOST QUALIFIED OUGHT TO BE HAPPY WHEN PRIVATE SCHOOLS BECOME MORE AVAILABLE IF WE COMBINE THE MINTERHOXBY EVIDENCE WITH PREVIOUS RESULTS ON THE PERFORMANCE OF PRIVATE SCHOOLS THEN THE INFERENCE IS THAT FULL SCHOOLCHOICE PROGRAMS WOULD IMPROVE STUDENT ACHIEVEMENT WHETHER THE STUDENTS SHIFT TO PRIVATE SCHOOLS OR STAY IN THE PUBLIC SYSTEM IN OTHER WORDS SCHOOL CHOICE IS A GOOD IDEA MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS A PROFESSOR OF ECONOMICS AT HARVARD 9402240058 940224 ECONOMY BUSINESS CRITICIZES ADMINISTRATION PLAN TO SPEED HIGHTECH EXPORTS LICENSING BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO INTRODUCE LEGISLATION THAT WOULD SPEED UP REVIEWS OF LICENSING REQUESTS FOR THE EXPORT OF SENSITIVE TECHNOLOGIES BUT CORPORATE AMERICA IS ALREADY CALLING THE PROPOSAL INADEQUATE A US OFFICIAL SAID THE ADMINISTRATION EXPECTS TO REDUCE THE LENGTH OF THE REVIEW PROCESS TO ABOUT 60 DAYS FROM THE CURRENT PROCESS WHICH OFTEN EXCEEDS 120 DAYS ADMINISTRATION OFFICIALS SAID THEY ARE TRYING TO ELIMINATE A BLACK HOLE THAT LICENSING APPLICATIONS OFTEN FALL INTO SINCE THE END OF THE COLD WAR THE ADMINISTRATION HAS BEEN MOVING TO LIBERALIZE EXPORT CONTROLS ON GOODS THAT HAVE MILITARY APPLICATIONS THE CONTROLS WHICH WERE ORIGINALLY AIMED AT KEEPING HIGH TECHNOLOGY OUT OF THE HANDS OF COMMUNIST COUNTRIES NOW FOCUSES MORE ON SUCH RENEGADE NATIONS AS LIBYA NORTH KOREA AND IRAQ LAST NIGHT PRESIDENT CLINTON TOLD THE BUSINESS COUNCIL THAT HIS PROPOSAL WILL BE SUFFICIENTLY BETTER THAN THE PRESENT LAW BUT HE WARNED THAT CORPORATE LEADERS WON'T LIKE IT ALL FOR INSTANCE HE SAID IT WILL PROVIDE FOR THE CONTINUATION OF THE CAPACITY OF THE PRESIDENT AND GOVERNMENT TO RESTRICT EXPORTS FOR REASONS THAT APPEAR TO BE GOOD AND SUFFICIENT THE LEGISLATION TO BE INTRODUCED TODAY WOULD REAUTHORIZE THE EXPORT ADMINISTRATION ACT WHICH EXPIRES IN JUNE THE PROPOSAL WOULD INTRODUCE A PROCESS IN WHICH FEDERAL AGENCIES THAT WANT TO OPPOSE AN APPLICATION HAVE TO RESPOND WITHIN A CERTAIN AMOUNT OF TIME IN THE PAST APPLICATIONS WOULD BE HELD UP BY AGENCIES THAT SIMPLY WOULDN'T RESPOND QUICKLY DURING THEIR PART OF THE REVIEW ACCORDING TO A DOCUMENT OUTLINING THE PROPOSAL THE USE OF UNILATERAL CONTROLS WOULD BE CURBED BY A REQUIREMENT THAT US ECONOMIC INTERESTS BE CONSIDERED BUT THE EXTENT OF SUCH LIMITS WAS BEING DECIDED BY PRESIDENT CLINTON HIGHTECH COMPANIES HAVE ARGUED THAT THE US UNILATERALLY RESTRICTS THE SALE OF TECHNOLOGIES TO COUNTRIES THAT END UP BUYING THE GOODS FROM NONUS SOURCES NEGATING THE POINT OF THE CONTROLS AND SHIFTING BUSINESS FROM US COMPANIES TRADE ASSOCIATIONS REPRESENTING HIGHTECH COMPANIES SUCH AS CRAY RESEARCH INC UNISYS CORP AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE BEEN KEPT ABREAST OF THE LEGISLATION AND ARE PLANNING NEWS BRIEFINGS TO ATTACK VARIOUS PROVISIONS CHAMBER OF COMMERCE OFFICIALS PLAN TO SHOWCASE THE CHART FROM HELL A FLOW CHART OF THE GOVERNMENT'S EXPORTCONTROL SYSTEM AND MAKE THE POINT THAT THE NEW PLAN WOULDN'T STREAMLINE THE PROCESS MUCH THIS WAS AN OPPORTUNITY TO DO SOMETHING THAT WOULD ADDRESS OUR LEGITIMATE SECURITY INTERESTS BUT PUT OUR ECONOMIC INTERESTS IN THE FRONT SEAT IN A POSTCOLD WAR ERA SAID WILLARD WORKMAN THE CHAMBER OF COMMERCE'S TOP TRADE OFFICIAL AND A FORMER EXPORTCONTROL OFFICIAL FOR THE STATE AND COMMERCE DEPARTMENTS BUT THEY'RE NOT EVEN MOVING TO THE BACK SEAT THEY'RE STILL IN THE TRUNK US COMPANIES WERE SEEKING TO EXPAND THE COMMERCE DEPARTMENT'S LEAD ROLE IN EXPORTLICENSING DECISIONS BECAUSE THE DEPARTMENT IS CONSIDERED MUCH FRIENDLIER TO EXPORTING THAN AGENCIES SUCH AS THE DEFENSE AND STATE DEPARTMENTS WHOSE OFFICIALS GIVE MORE WEIGHT TO NATIONALSECURITY AND FOREIGNPOLICY CONCERNS THE LEGISLATION ISN'T EXPECTED TO DO THAT HOWEVER CORPORATE INTERESTS ALSO WANTED TO AUTHORIZE FURTHER DECONTROL ON COMPUTERS TELECOMMUNICATIONS SEMICONDUCTORS AND ENCRYPTION SOFTWARE BUT THE BILL ISN'T EXPECTED TO DO THAT EITHER THE NET IS THIS ISN'T A BIG STEP FORWARD SAID EDWARD BLACK VICE PRESIDENT AT THE COMPUTER AND COMMUNICATIONS INDUSTRY ASSOCIATION DESPITE THE CRITICISM MR BLACK AND OTHER HIGHTECH OFFICIALS ARE CAREFUL TO LEAVE THE DOOR OPEN FOR NEGOTIATING CHANGES AS THE LEGISLATION WINDS THROUGH CONGRESS THE ADMINISTRATION PROPOSAL IS EXPECTED TO ALLOW US COMPANIES TO ARGUE THAT CONTROLS SHOULD BE LIFTED IF THE RESTRICTIONS GIVE COMPETITORS AN UNFAIR IMPACT IN THE WORLD MARKETPLACE THE LEGISLATION WOULD ALLOW COMPANIES TO ARGUE THREE POINTS THAT THERE IS FOREIGN AVAILABILITY OF THE RESTRICTED GOODS FROM OTHER COUNTRIES INEFFECTIVE CONTROL ON THE SALE OF THE RESTRICTED GOODS ON THE WORLD MARKET AND COMPETITIVE DISADVANTAGE WHEN THE US HAS TOUGHER CONTROLS THAN OTHER COUNTRIES THE PROBLEM US COMPANY OFFICIALS SAID IS THAT THE GOVERNMENT WON'T AUTOMATICALLY LIFT RESTRICTIONS UNDER THOSE CONDITIONS BUT JUST PUT THE GOODS IN QUESTION UNDER REVIEW FOR POSSIBLE LIBERALIZATION INDUSTRY OFFICIALS ALSO EXPRESSED FRUSTRATION THAT THE ADMINISTRATION ISN'T PLANNING TO RELAX RESTRICTIONS ON THE REEXPORT OF RESTRICTED TECHNOLOGY AS IT STANDS A COMPANY IN A FOREIGN COUNTRY THAT BUYS A RESTRICTED US EXPORT HAS TO GET APPROVAL FROM THE US GOVERNMENT TO RESELL THAT TECHNOLOGY 9402240057 940224 SMALL STOCK FOCUS STOCKS FALL AS GOVERNMENT'S AUCTION OF 2YEAR NOTES PROVES DISAPPOINTING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A DISAPPOINTING TWOYEAR NOTE AUCTION CAUSED SMALLCOMPANY STOCK INVESTORS TO ABANDON AN EARLY BUYING TREND AND SWITCH TO A SELLING MODE AS BONDS SLID TWO KEY INDEXES WERE MILDLY LOWER WHILE BIG CYCLICAL ISSUES WERE HIT HARD THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS FELL 013 OR 005 TO 26492 BUT ABOVE ITS SESSION LOW OF 26452 ON THE NASDAQ STOCK MARKET THE COMPOSITE INDEX DROPPED 204 OR 026 TO END AT 78911 THE DOW JONES INDUSTRIAL AVERAGE RETREATED ABOUT 20 POINTS TO 389168 LOSING NASDAQ ISSUES SURPASSED GAINERS 1570 TO 1449 ON NASDAQ NATIONAL MARKET VOLUME OF 254449700 SHARES AND TOTAL VOLUME OF 294656500 TUESDAY NATIONAL MARKET VOLUME WAS JUST 221117300 SHARES AND OVERALL VOLUME WAS ONLY 263268500 AMONG FINANCIAL STOCKS SUMMIT BANCORP CHATHAM NJ FELL 1 3/8 TO 20 1/8 TUESDAY THE COMPANY SAID IT HAS ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE CRESTMONT FINANCIAL IN A TAXFREE EXCHANGE OF STOCK SUMMIT SAID IT EXPECTS TO INCUR A ONETIME RESTRUCTURING CHARGE OF ABOUT 11 MILLION AFTER TAXES THIS YEAR BECAUSE OF THE ACQUISITION CRESTMONT OF EDISON NJ FELL 1 3/8 TO 19 7/8 SUMMIT AGREED TO SELL TO LEHMAN BROTHERS ABOUT 100 MILLION OF CRESTMONT'S PERFORMING AND NONPERFROMING COMMERCIAL REALESTATE LOANS INCLUDING ALL OF CRESTMONT'S NONPERFORMING REALESTATE ASSETS AMERICA ONLINE ROSE 6 3/4 TO 80 1/4 THE COMPUTER ONLINE INFORMATIONSERVICE COMPANY SAID IT HAS INCREASED ITS NUMBER OF TOTAL PORTS OR CONNECTIONS FOR INDIVIDUAL USERS BY ABOUT 20 IN THE PAST SEVERAL WEEKS THE VIENNA VA COMPANY INFORMED SUBSCRIBERS ON FEB 1 THAT IT WOULD LIMIT ACCESS DURING PEAK HOURS BECAUSE OF A CAPACITY SHORTAGE COLLAGEN CLOSED 1 1/8 HIGHER AT 23 1/8 THE PALO ALTO CALIF BIOMEDICAL FIRM SAID ITS BOARD HAS AUTHORIZED THE PURCHASE OF 300000 COMMON SHARES IN THE OPEN MARKET ALSO NATIONAL RECORD MART ZOOMED UP 1 TO 5 3/4 THE CARNEGIE PA OPERATOR OF HOMEENTERTAINMENT PRODUCT RETAIL STORES SAID ITS BOARD APPROVED A PROGRAM TO BUY BACK AS MUCH AS 1 MILLION IN COMMON SHARES FROM TIME TO TIME LOWER FISCAL SECONDQUARTER EARNINGS CAUSED WCT COMMUNICATIONS TO PLUNGE 1 3/8 TO 4 3/4 THE SANTA BARBARA CALIF TELECOMMUNICATIONS COMPANY SAID ITS NET INCOME FOR THE PERIOD FELL TO TWO CENTS A SHARE FROM FIVE CENTS A YEAR EARLIER IN ADDITION HANCOCK INSTITUTIONAL EQUITY SERVICES CUT ITS RATING ON WCT TO HOLD FROM BUY AND OPPENHEIMER & CO DOWNGRADED THE STOCK TO MARKET PERFORMER FROM BUY ABRAMS INDUSTRIES DROPPED 1 1/4 TO 6 1/4 THE ATLANTA CONSTRUCTION COMPANY POSTED A FISCAL THIRDQUARTER LOSS OF 102370 VS A PROFIT OF 23835 THE YEAR BEFORE MEANWHILE IMPROVED EARNINGS HELPED MARSAM PHARMACEUTICALS CLIMB 1 7/8 TO 15 THE CHERRY HILL NJ COMPANY SAID ITS FOURTHQUARTER PROFIT WAS FIVE CENTS A SHARE UP SHARPLY FROM A LOSS OF 30 CENTS LAST YEAR OSHKOSH B'GOSH FELL 1 5/8 TO 15 1/8 THE OSHKOSH WIS CASUAL CLOTHING COMPANY SAID ITS FOURTHQUARTER LOSS WIDENED TO 42 CENTS A SHARE ON A CHARGE COMPARED WITH THREE CENTS A YEAR AGO NEW ISSUE EQUITY INNS JUMPED TO 12 3/4 ABOVE ITS 10ASHARE OFFERING PRICE THIS MORNING THE MEMPHIS TENN REALESTATE INVESTMENT TRUST SAID PROCEEDS WILL GO TOWARD DEBT REPAYMENT THE ACQUISITION OF PROPERTIES WORKING CAPITAL AND ACQUISITIONS ARDEN INDUSTRIAL PRODUCTS ROSE TO 13 1/2 FROM ITS OFFERING PRICE OF 12 A SHARE THE ST PAUL MINN DISTRIBUTOR OF FASTENERS SAID PROCEEDS WILL BE USED TO FINANCE THE OPENING OF NEW DISTRIBUTION CENTERS DEBT REPAYMENT AND GENERAL CORPORATE PURPOSES ON THE AMERICAN STOCK EXCHANGE FIBREBOARD A WALNUT CREEK CALIF INSULATION COMPANY JUMPED 2 3/8 TO 37 1/2 USA TODAY REPORTED THAT A GROUP LED BY CARL POHLAD THE OWNER OF THE MINNESOTA TWINS MAJOR LEAGUE BASEBALL TEAM IS WEIGHING A BID FOR FIBREBOARD FIBREBOARD WASN'T IMMEDIATELY AVAILABLE FOR COMMENT CHRISTINE CALLIES A MARKET ANALYST AT BROWN BROTHERS HARRIMAN SAID SMALLER STOCKS HAVE BEEN OUTDOING THEIR LARGER COUNTERPARTS FOR THE LAST WEEK AFTER UNDERPERFORMING BIGGER STOCKS FOR MONTHS THIS IS TO BE EXPECTED SHE SAID AFTER THE MARKET HAS EXPERIENCED A SHARP SMACK AND THEN STARTS TO STABILIZE INVESTORS BEGIN TO THINK ABOUT RETURNING TO SMALL STOCKS TO GIVE THEM LEVERAGE FOR THE ADVANCE THIS IS USUALLY A SHORTTERM PHENOMENON JOHN AVIGNONE HEAD OF OVERTHECOUNTER TRADING AT CONNING & CO SAID MARKET PLAYERS CONTINUE TO TALK ABOUT THE POSSIBILITY THAT THE FEDERAL RESERVE WILL AGAIN RAISE SHORTTERM RATES ALTHOUGH HE SAID THE FEAR IS OVERDONE MR AVIGNONE ADDED THAT CLIMBING RATES ARE ON EVERYONE'S MINDS HE SAID PART OF TODAY'S DECLINE MIGHT HAVE BEEN A DELAYED REACTION TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S TESTIMONY TUESDAY BEFORE CONGRESS GREENSPAN SAID THE FED WILL LIKELY RAISE SHORTTERM RATES BUT DIDN'T SAY WHEN THE MOVE MIGHT OCCUR RATESENSITIVE STOCKS DREW SELLING AS BOND PRICES DECLINED AMERICREDIT FORT WORTH TEXAS LOST 1/2 TO 6 1/8 ON THE BIG BOARD GLENDALE FEDERAL BANK GLENDALE CALIF FELL 3/8 TO 5 7/8 ALSO ON THE NEW YORK STOCK EXCHANGE AND BSB BANCORP BINGHAMTON NY DECLINED 3/4 TO 22 1/2 9402240056 940224 US AGENCY ISSUES RULES ON SAFETY FOR PRIVATE BUSES WASHINGTON TEN YEARS AFTER CONGRESS ORDERED THEM THE FEDERAL HIGHWAY ADMINISTRATION FINALLY ISSUED SAFETY RULES FOR PRIVATE BUSES SUCH AS CHURCH VANS AND COMPANYOWNED SHUTTLES THE RULES WILL REQUIRE FEDERAL MAINTENANCE INSPECTIONS FOR THE VEHICLES AND THEY WILL LIMIT DRIVERS' HOURS AT THE WHEEL THEY WON'T GO INTO EFFECT UNTIL NEXT JANUARY TO ALLOW THE AFFECTED OPERATORS SUFFICIENT TIME TO BECOME FAMILIAR WITH THE NEW RULES THE AGENCY SAID SCHOOL BUSES ARE ALREADY SUBJECT TO FEDERAL SAFETY RULES AS ARE SCHEDULED BUS LINES CHARTER BUSES AND PUBLIC SHUTTLE BUSES THAT CROSS STATE LINES THAT TWO PAGES OF RULES TOOK A DECADE TO WRITE IS A TESTAMENT TO THE CAUTION OF WASHINGTON'S BUREAUCRACIES THE HIGHWAY ADMINISTRATION'S DELIBERATIONS INCLUDED PUBLISHING SEVERAL VERSIONS OF PROPOSED RULES CONDUCTING A TWOYEAR STUDY INTO THE OPERATING PRACTICES OF PRIVATE CARRIERS AND GATHERING COMMENTS EACH STEP OF THE WAY IN 1984 CONGRESS PASSED A LAW EXTENDING FEDERAL JURISDICATION TO BUSES OPERATED PRIVATELY BY BUSINESSES AND BY NONPROFIT GROUPS SUCH AS CHURCHES AND BOY SCOUT TROOPS 9402240055 940224 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN ELECTRONIC BILLPAYING GAINS GROUND DESPITE SOME EMBARRASSING GLITCHES DESPITE LAST WEEK'S MULTIMILLIONDOLLAR GOOF BY CHEMICAL BANK CASH MACHINES IN NEW YORK BANKS UTILITIES AND INSURERS SAY MANY CONSUMERS LIKE ELECTRONIC FUND TRANSFERS BANKAMERICA CUSTOMERS USERS FOR YEARS NOW ZAP FUNDS TO 41000 RECIPIENTS FROM MORTGAGE BANKERS TO DENTISTS FIRST FEDERAL SAVINGS BANK LA CROSSE WIS SAYS ITS FUND TRANSFERS ROSE TO 47 MILLION IN 1993 EQUIVALENT TO THE WORK OF 78 TELLERS FIRST CHICAGO AND TWO OTHERS JOIN MICROSOFT IN A HOMEBANKING PROGRAM FIRST CHICAGO SAYS 25 OF ITS CLIENTS HAVE PCS AND SOME HAVE MODEMS TOO THE INFORMATION HIGHWAYS ARE OUT THERE IT'S JUST A MATTER OF CONNECTING THEM SAYS BANKER CHARLES SHOEMAKER STILL NOT ALL ARE CONVINCED ROUTINGS CAN GET MIXED UPAND SO CAN USERS ILLINOIS POWER NOTES MANY FOLKS CONTINUE TO PREFER CHECKS MEANWHILE STATE FARM MUTUAL AUTOMOBILE INSURANCE AND JOHN HANCOCK MUTUAL LIFE INSURANCE SAY 50 OF ALL THEIR NEW CLIENTS PAY ELECTRONICALLY HANCOCK SAYS THE SHARE MAY RISE TO 65 BY YEAR END PEOPLE LIKE TO DO THEIR BILLPAYING AT MIDNIGHT SAYS ZIONS BANCORP IN UTAH WHERE ITS FEES AVERAGE LESS THAN STAMPS BETTER BOWLING THROUGH SCIENCE IS THE AIM OF NEW HIGHTECH BALLS REACTIVE BOWLING BALLS SO CALLED BECAUSE A RESIN ADDITIVE ALLOWS BETTER REACTION ON LANES GIVE BOWLERS MORE STRIKEPOWER SAYS BOWLING MAGAZINE UNLIKE REGULAR URETHANE BALLS THAT CARRY OIL FROM THE TREATED FRONTEND OF THE LANE TO THE DRY BACK END RESIN BALLS ABSORB THE OIL GRAB THE WOOD BETTER AND HOOK HARDER INTO THE PINS THERE'S NO QUESTION THAT SKILLED PLAYERS ARE SCORING HIGHER WITH REACTIVE BALLS SAYS BILL VINT THE MAGAZINE'S EDITOR WITH DOZENS OF MODELS TO CHOOSE FROM MANY SERIOUS BOWLERS NOW OWN TWO OR THREE BALLS BRUNSWICK CORP JUST ADDED A NEW TECHNOLOGICAL TWIST WITH A MUSHROOMSHAPED CORE THAT IT SAYS ADJUSTS WEIGHT SO A 12POUND OR A 14POUND BALL CAN HANDLE THE SAME WAY AS A 16POUNDER AT 200 THE QUANTUM BALLS SCORE HIGHEND PRICES GORDON PENNOCK A PROFESSOR OF MECHANICAL ENGINEERING AT PURDUE UNIVERSITY SAYS LOTS OF CLAIMS ARE GOING AROUND BUT HE NOTES THAT EVEN THE BEST DESIGN IS SUBJECT TO ARBITRARY SKILLS OF DRILLER AND BOWLER COTTON'S HIGH BUT THE LIVIN' AIN'T EASY FOR TEXTILE FIRMS THESE DAYS OVER THE PAST TWO MONTHS OR SO COTTONFUTURES PRICES HAVE JUMPED MORE THAN A DIME PER POUND TO 74 CENTS AS BAD WORLD WEATHER DISTURBS MARKETS MOST MAJOR MILLS HAVE HEDGED THEIR COTTON COSTS THROUGH THE THIRD QUARTER SAYS PRUDENTIAL SECURITIES ANALYST DEBORAH BRONSTON BUT IF COTTON PRICES KEEP RISING AND CAN'T BE PASSED ON ALL FIRMS THAT BUY RAW COTTON WILL LIKELY FEEL THE PINCH OF HIGHER PRICES IN 1995 SHE SAYS DITTO SAYS GOLDMAN SACHS ANALYST JAY MELTZER WE'RE KEEPING AN EYE ON ALL THE COMPANIES WE FOLLOW MR MELTZER ADDS BOTH ANALYSTS RECENTLY TRIMMED THEIR OUTLOOKS A BIT ON CONE MILLS A GREENSBORO NC FIRM THEY FEEL ISN'T HEDGED AS FAR OUT AS SOME OTHERS CONE SAYS IT DOESN'T COMMENT ON ANALYSTS' ESTIMATES BESIDES A CONE OFFICIAL NOTES THAT HEDGING IS ALL RELATIVE AND THAT SOONER OR LATER ALL THE COMPANIES HAVE TO BUY RAW COTTON THE NATION'S PURCHASING AGENTS SAID COTTONFABRIC PRICES ROSE FOR THE SECOND CONSECUTIVE MONTH IN JANUARY FINANCIAL COUNSELING BY THE CONSUMER CREDIT COUNSELING SERVICE ROSE 25 LAST YEAR TO A RECORD AS MORE THAN ONE MILLION CONSUMERS SOUGHT HELP WITH THEIR PERSONAL FINANCIAL PROBLEMS MEANWHILE THE NUMBER OF PERSONAL BANKRUPTCIES FILED FOR THE FISCAL YEAR DECLINED SAYS THE NATIONAL FOUNDATION FOR CONSUMER CREDIT IN SILVER SPRING MD PHONE THE FED FOR THIS THE FEDERAL RESERVE BANK OF NEW YORK OFFERS AN ELECTRONIC BULLETIN BOARD THAT CARRIES ONLINE AMONG OTHER REPORTS THE FULL TEXT OF SPEECHES BY ITS SENIOR OFFICERS CHANGE FOR GOOD A FUNDRAISING CAMPAIGN TO AID UNICEF TAKES OFF ABOARD BRITISH AIRWAYS' LONGHAUL FLIGHTS FLIGHT PERSONNEL WILL COLLECT UNWANTED FOREIGN COINS AND NOTES FROM PASSENGERS AND GIVE THE MONEY TO THE UN CHARITY FOR CHILDREN SINGING THE BLUES FRENCH RADIO STATIONS PONDER QUOTAS FOR POP MUSIC A CONTROVERSIAL LAW REQUIRES FRANCE'S 1300 FM STATIONS STARTING IN 1996 TO USE PLAYLISTS MADE UP OF AT LEAST 40 FRENCH SONGS IT ADDS MORE FRICTION TO THE USFRENCH MEDIA TUGOFWAR DISCORD IS AUDIBLE AS STATIONS TRY TO FIGURE OUT JUST WHAT MAKES A SONG FRENCH THIS IS A BIG MISTAKE SAYS LAURENT BOUNEAU OF TRENDY STATION SKYROCK BASED IN PARIS WHICH PLAYS 80 AMERICAN OR UK HITS ENGLISH IS THE INTERNATIONAL LANGUAGE BUT YOU CAN'T SAY SO HE ADDS MEANWHILE AUTHORITIES ARE RACKING THEIR BRAINS TO FIND A RELIABLE WAY TO ENFORCE THE RULES THE FRENCH AUDIOVISUAL COUNCIL HASN'T YET DECIDED WHETHER THE RADIO STATIONS THEMSELVES SHOULD BE ALLOWED TO PROVIDE INFORMATION ABOUT WHAT SONGS THEY BROADCAST OR WHETHER INDEPENDENT MONITORS SHOULD BE HIRED AT POTENTIALLY HUGE COSTS CRITICS POINT OUT DEFINITIONS ARE DICEY HOW DO YOU CLASSIFY FRANCOALGERIAN POP STARS SINGING IN ARABIC TO FRANCE'S LARGE NORTH AFRICAN COMMUNITY BRIEFS FOR THE HYPOCHONDRIAC WHO HAS EVERYTHING RX FOR ORGANIZATION INC IN CANOGA PARK CALIF OFFERS A MEDICINE CABINET ORGANIZER SHIPTOFORE ROYAL VIKING LINE TEAMS UP WITH GOLF DIGEST SCHOOLS FOR CRUISES TO EXOTIC GOLF COURSES 9402240054 940224 KODAK TO REORGANIZE IMAGING DIVISION TO EMPHASIZE ELECTRONIC TECHNOLOGY BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO PLANS TO OVERHAUL ITS KEY IMAGING GROUP TO PUT MORE EMPHASIS ON ELECTRONIC TECHNOLOGY WHILE ALSO CUTTING STAFF IN SEVERAL CORPORATE DIVISIONS THE REORGANIZATION WILL SEPARATE KODAK'S NEWER ELECTRONIC TECHNOLOGY SUCH AS PHOTO CD AND DIGITAL FILMLESS CAMERAS FROM ITS CORE FILM AND PHOTOGRAPHICPAPER BUSINESS THE REORGANIZATION WILL BE ONE OF THE FIRST BY CHIEF EXECUTIVE GEORGE FISHER WHO JOINED KODAK IN DECEMBER AFTER LEADING MOTOROLA INC TO THE FOREFRONT OF WIRELESS ELECTRONIC TECHNOLOGY MR FISHER HAS WARNED DIGITAL SKEPTICS THAT HE STRONGLY SUPPORTS EXPANDING KODAK'S ELECTRONIC VENTURES INSISTING THAT PATIENCE IS NEEDED FOR NEW INNOVATIONS BUT HE HAS BEEN QUICK TO ADD AS HE DID IN A RECENT COMPANY NEWSLETTER THAT IF THIS COMPANY IS GOING TO BE HEALTHY IT HAS TO BE HEALTHY IN THE CORE FILM BUSINESS ALTHOUGH OVERALL CUTBACK FIGURES IN EACH DIVISION ARE STILL BEING DETERMINED WE'RE NOT TALKING 2 TO 5 SAYS ONE PERSON CLOSE TO THE COMPANY FOR EXAMPLE STAFF REDUCTIONS OF AS MUCH AS 30 ARE EXPECTED IN SOME DIVISIONS SUCH AS THE 300PERSON COMMUNICATIONS AND PUBLICAFFAIRS DIVISION A SIGNIFICANT PORTION OF THE CUTBACKS MAY OCCUR OUTSIDE THE US A KODAK SPOKESMAN DECLINED TO COMMENT SPECIFICALLY ON STAFF CUTS OR THE IMAGING OVERHAUL BUT HE SAID EACH UNIT IS CURRENTLY LOOKING AT ITS OWN NEEDS AND AT ITS STRUCTURE SOME UNITS ARE GETTING A HIGHER PERCENTAGE CUT THAN OTHERS BUT NOTHING IS MANDATED THE CUTBACKS WERE ORIGINALLY SET INTO MOTION BY FORMER CEO KAY WHITMORE MR WHITMORE ANNOUNCED COMPANYWIDE STAFF REDUCTIONS OF AS MUCH AS 10000 PEOPLE IN AUGUST 1993 BUT IT WASN'T CLEAR WHERE THE BULK OF CUTS WOULD BE MR FISHER HAS SAID THAT SOME OF THESE JOB CUTS COULD BE OFFSET BY HIRING IN KEY GROWTH AREAS OF THE COMPANY BRINGING THE NET REDUCTIONS TO ABOUT 8000 OR 9000 HE HAS ALSO SAID HE HOPED MOST JOB CUTS WOULD TAKE PLACE BY THE MIDDLE OF 1994 WITH THE LAST 1000 OR SO OCCURING LATER THROUGH ATTRITION INVESTORS HAVE PUSHED FOR A MAJOR SHAKEUP AT KODAK WHICH HAS RESTRUCTURED FIVE TIMES IN THE PAST DECADE YET FAILED TO CUT COSTS OR SUBSTANTIALLY GROW EARNINGS PEAKED IN 1988 WHEN KODAK'S BIGGEST PHOTOGRAPHY COMPETITOR FUJI PHOTO FILM CO OF TOKYO HAD ONLY A SMALL FOOTHOLD IN THE US BUT NOW FUJI AND PRIVATELABEL FILM MAKERS HAVE BECOME FIERCE COMPETITORS AND KODAK CAN NO LONGER RELY ON DOUBLEDIGIT GROWTH IN ITS FILM BUSINESS BOTH THE OVERHAUL OF IMAGING AND THE STAFF CUTS ARE LIKELY TO BE WELLRECEIVED BY ANALYSTS AND INDUSTRY WATCHERS MANY HAD INITIALLY CRITICIZED KODAK'S INVESTMENT IN DIGITAL TECHNOLOGY SAYING THE COMPANY SHOULD FOCUS RESOURCES ON ITS PROFITABLE CORE BUSINESS OF FILM BUT THE MOOD HAS CHANGED WITH THE ARRIVAL OF MR FISHER WHO DOUBLED MOTOROLA'S SALES TO 16 BILLION FROM 8 BILLION IN HIS FIVE YEARS AS CEO LARGELY BECAUSE OF HIS TECHNOLOGICAL FORESIGHT AND PATIENCE WITH THE DEVELOPMENT OF CELLULAR TELEPHONES AND PAGERS BY SPLITTING THE DIVISION KODAK AND INVESTORS WILL BE ABLE TO PINPOINT CASH FLOW AND COST PROBLEMS AS WELL AS PROFIT POTENTIAL FISHER HAS THE DOCUMENTED ABILITY TO MAKE INVESTMENTS THAT WILL PRODUCE ATTRACTIVE RETURNS IN THE LONGRUN SAYS MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO IF ANYTHING I WOULD REGARD THIS AS AN ORGANIZATIONALLY CONSTRUCTIVE MOVE THE NEW EMPHASIS ON DIGITAL AND ELECTRONIC TECHNOLOGY IS EXPECTED TO FORCE CHANGES IN TOP IMAGING MANAGEMENT KODAK'S IMAGING GROUP LEADERS HISTORICALLY HAVE HAD BACKGROUNDS IN CONVENTIONAL PRODUCTS SUCH AS FILM AND SOME OUTSIDERS MAY BE BROUGHT IN TO HELP LEAD THE DIGITAL SIDE PEOPLE CLOSE TO THE COMPANY SAY THE REORGANIZATION IS EXPECTED TO ESTABLISH A CLEAR DISTINCTION BETWEEN THE BUSINESSES IMPROVING ACCOUNTABILITY FOR PROFITS AND COSTS OF EACH SAID JACK KELLY AN ANALYST WITH GOLDMAN SACHS IF I'M IN KODAK I'LL BE MUCH MORE MOTIVATED TO MAKE ELECTRONICS WORK IF THAT'S MY ONLY THING HE SAID THE EXPECTED IMAGING REORGANIZATION WOULD BE WELCOMED BY THE PHOTOFINISHING INDUSTRY WHICH HAD BEEN CONFUSED ABOUT WHO WAS IN CHARGE WHEN IT CAME TO ANSWERING THEIR QUESTIONS ABOUT KODAK'S EMERGING DIGITAL TECHNOLOGY RICK BACHELDER OWNER OF PITTSBURGHBASED FILMET COLOR LABORATORIES INC MET WITH MR FISHER RECENTLY AND SAID THE CEO ASSURED HIM THAT THERE WOULD BE A STRATEGY UNFOLDING TO PUT MORE EMPHASIS ON KODAK'S DIGITAL SIDE INCLUDING PHOTO CD A TECHNOLOGY FOR STORING PHOTOS DIGITALLY SO THEY CAN BE VIEWED OR EDITED ON TELEVISION SETS OR COMPUTERS I HAVE FELT IN THE PAST THAT THERE WAS NOT A PERSON IN CHARGE AT KODAK WHO WAS DRIVING THE VISION FORWARD OF THIS TECHNOLOGY MR BACHELDER SAID I NOW FEEL PEOPLE THERE ARE EMPOWERED WITH A SENSE OF ANTICIPATION AND EXCITEMENT THE PROPOSED CHANGES EVEN BROUGHT A NOD OF APPROVAL FROM SCOTT BROWNSTEIN THE DIGITAL WHIZKID WHO HELPED INVENT KODAK'S PHOTO CD BUT JOINED MEDIA MOGUL MORTIMER ZUCKERMAN'S APPLIED GRAPHICS TECHNOLOGIES LAST YEAR IT'S NOT GOING TO BE EASY SAID MR BROWNSTEIN BUT IT COULD HAVE TREMENDOUS IMPACT 9402240053 940224 REVIEW & OUTLOOK EDITORIAL FIGHT CRIME NOW PHILIP HEYMANN IS RIGHT ANTICRIME BILLS LIKE THE ONE PRESIDENT CLINTON IS SUPPORTING ARE MOSTLY COSMETIC THE DEPARTING DEPUTY ATTORNEY GENERAL USED A FAREWELL SESSION WITH REPORTERS LAST WEEK TO ATTACK HIS EXBOSS'S PROPOSAL AS FULL OF EMPTY SOLUTIONS THAT WOULD DO LITTLE TO DETER CRIME HE HURLED PARTICULAR INVECTIVE AT THE THREESTRIKESYOU'REOUT PROVISION WHICH WOULD LOCK UP REPEAT VIOLENT FELONS FOR LIFE ALONG THE WAY HE ALSO DISMISSED THE PRESIDENT'S PROPOSALS TO PUT 100000 MORE COPS ON THE STREETS AND BUILD REGIONAL PRISONS FOR VIOLENT OFFENDERS AND HE BLASTED MANDATORY MINIMUM SENTENCES FOR DRUG OFFENDERS AS NEXT TO USELESS IN REDUCING CRIME HE SAID IT'S BEEN TOO EASY TO PRETEND THAT WE'RE GOING TO SOLVE THE PROBLEM OF CRIME WITH A SET OF REMEDIES THAT LOOK GOOD FOR THE FIRST 15 SECONDS AND LOOK WORSE AS YOU GET TO THE HALFMINUTE WE FIND IT HARD TO BELIEVE THAT ANY COMMUTER WHO BRAVES HIS LOCAL SUBWAY TO GET TO WORK OR ANY SHOPPER WHO CIRCLES THE MALL LOT LOOKING FOR A SAFE PLACE TO PARK HAS EVER PRETENDED ANY SUCH THING MOST OF US ARE ALL TOO JADED KNOWING FROM BITTER EXPERIENCE THAT THERE ARE NO SIMPLE SOLUTIONS YET THAT IS NOT TO SAY THERE ARE NO SOLUTIONS WHAT WE REALLY NEED TO DO IS REVERSE THE TRENDS IN LAW ENFORCEMENT THAT HAVE CORRESPONDED WITH THE TREND TOWARD MORE PERVASIVE CRIME THE REASON THAT MEASURES SUCH AS THREESTRIKESYOU'REOUT CARRY SO MUCH APPEAL IS BECAUSE THEY ARE THE ONLY THINGS THAT REMAIN LEGALLY PLAUSIBLE IN THE WAKE OF THE COURT DECISIONS LEGISLATION AND SOCIAL THINKING THAT GAVE US EVERYTHING FROM MIRANDA CENSORING OF CONFESSIONS TO ACTIVIST JUDGES DECLARING JAILS ARE TOO CROWDED IF THE PRESIDENT AND/OR MR HEYMANN OR FOR THAT MATTER MEMBERS OF CONGRESS WANT A BILL THAT WOULD REALLY DO SOMETHING ABOUT CRIME WHAT WOULD IT INCLUDE THE ANSWERS WE THINK ARE ANYTHING BUT MYSTERIOUS REFORM THE JUVENILE JUSTICE SYSTEM WHEN ASKED TO NAME A CAUSE FOR THE INCREASE IN YOUTH VIOLENCE LAW ENFORCEMENT OFFICIALS AROUND THE COUNTRY POINT TO THE OUTOFDATE JUVENILE JUSTICE LAWS WHICH WERE SET UP IN THE '50S AND '60S WHEN THE MOST SERIOUS CRIME A KID COMMITTED WAS TYPICALLY SHOPLIFTING OR JOY RIDING COLORADO UTAH AND FLORIDA HAVE ALREADY PASSED LAWS OPENING UP THEIR JUVENILE JUSTICE SYSTEMS TO GREATER PUBLIC SCRUTINY AND REQUIRING SWIFT PUNISHMENT FOR OFFENDERS OTHER STATES ARE CONSIDERING SIMILAR MEASURES THE AIM IS TO DETER CHILDREN BEFORE THEY ARE EMBARKED ON A LIFE OF CRIME BUT THE PRESENT SYSTEM MAINLY TEACHES IMPRESSIONABLE YOUTHS THAT CRIME HAS NO SERIOUS CONSEQUENCE BRING BACK THE REFORM SCHOOL PART OF THE PROBLEM OF CHECKING THE GROWING VIOLENCE AMONG THE YOUNG IS HOW TO CREATE DISCIPLINED BUT NURTURING ENVIRONMENTS FOR VIOLENT CHILDREN MOST OF WHOM ARE BOYS AND MOST OF WHOM COME FROM POOR FATHERLESS FAMILIES ONE ANSWER IS REFORM OF THE FOSTERCARE AND ADOPTION LAWS WHICH CAN BOUNCE PROBLEM CHILDREN IN AND OUT OF THE SYSTEM FOR YEARS ANOTHER IS A MODERN DAY VERSION OF THE REFORM SCHOOL POSSIBLY EVEN BOARDING SCHOOLS WHERE PROBLEM YOUTHS SEPARATED FROM NONVIOLENT CHILDREN WHO WANT TO LEARN ARE SUBJECT TO STRICT DISCIPLINE ENFORCE THE VAGRANCY LAWS THOSE WHO LIVE IN BAD NEIGHBORHOODS USUALLY HAVE A PRETTY GOOD IDEA OF WHO THE TROUBLEMAKERS ARE RESTORING THE AUTHORITY OF THE COP ON THE BEAT TO ARREST SUSPECTED DRUG PUSHERS OR OTHER MALEFACTORS FOR LOITERING WOULD GO A LONG WAY TO GETTING CRIME OFF THE STREETS TO THAT END NEW YORK CITY ANNOUNCED THIS WEEK THAT IT IS PLANNING TO START ROUNDING UP TEENAGE TRUANTS ANTITRUANCY PROGRAMS ARE ALREADY UNDER WAY IN SUCH CITIES AS PHILADELPHIA WASHINGTON ATLANTA AND ST LOUIS REPEAL THE EXCLUSIONARY RULE THIS IS THE RULE THAT PROHIBITS JURIES FROM HEARING EVIDENCE THAT WAS OBTAINED THROUGH SOME PROCEDURAL ERROR COURTS HAVE RELAXED SOME IMPOSSIBLE STANDARDS RECENTLY BUT IT WOULD BE BETTER TO DROP THE RULE ALTOGETHER WE SHOULD RETREAT TO THE WISDOM OF JUSTICE CARDOZO'S 1926 NEW YORK DECISION THAT IT MAKES NO SENSE THAT THE CRIMINAL IS TO GO FREE BECAUSE THE CONSTABLE HAS BLUNDERED GIVE POLICE OFFICERS IN CONFLICT WITH SUSPECTS A PRESUMPTION OF INNOCENCE POLICE OFFICERS HAVE ENOUGH TO DEAL WITH BESIDES HAVING TO PROVE HOW AND WHY THEY TOOK A CERTAIN COURSE OF ACTION WITH A SUSPECTED LAWBREAKER AFFORD THEM THE SAME BENEFIT OF THE DOUBT THAT OUR LEGAL SYSTEM AFFORDS CRIMINALS AND NOT SO INCIDENTALLY THE SAME PROTECTIONS AGAINST DOUBLE JEOPARDY A SERIOUS CRIME BILL IN SHORT WOULD REPEAL WHAT MUCH OF THE LEGAL COMMUNITY SPENT THE LAST GENERATION WRITING INTO THE LEGAL PRECEDENTS THE STATUTE BOOKS AND THE CONSTITUTION THE ELABORATE PROTECTIONS THAT THE US LEGAL SYSTEM HAS SET UP FOR DEFENDANTS MAKES IT IMPOSSIBLE FOR THE COMMUNITY TO ASSERT ITS OWN RIGHTS IN A MEASURED WAY CRIMINALS ARE NOT LIKELY TO BE PUNISHED UNTIL THEY PROVE THEMSELVES HARDENED WHICH IS A RECIPE FOR PRODUCING A LOT OF HARDENED CRIMINALS THE SET OF ATTITUDES AND EXPECTATIONS INVOLVED CANNOT BE CHANGED AT THE STROKE OF A PEN BUT IF ANYONE IS SERIOUS THE DIRECTION IS CLEAR 9402240052 940224 BRADY LAUNCHES EMERGINGMARKETS FIRM BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL FORMER US TREASURY SECRETARY NICHOLAS BRADY WHO LENT HIS NAME TO BONDS THAT EASED THE LATIN AMERICAN DEBT CRISIS IS LAUNCHING A COMPANY WITH POWERHOUSE BACKING TO INVEST IN EMERGING MARKETS THE NEW COMPANY DARBY OVERSEAS INVESTMENTS LTD IS SET TO PUMP AS MUCH AS 100 MILLION INTO PRIVATE FIRMS IN ARGENTINA CHILE AND MEXICO WITH INVESTMENTS PLANNED LATER FOR NEW ZEALAND AND AUSTRALIA THE BECHTEL ENGINEERING FORTUNE IS BEHIND MR BRADY'S COMPANY ACCORDING TO THE FORMER TREASURY SECRETARY OTHER BACKERS INCLUDE TOP OFFICIALS OF HIS FORMER EMPLOYER NEW YORK INVESTMENT BANK DILLON READ & CO AND SHELDON LUBAR CHAIRMAN OF CHRISTIANA COS A MILWAUKEE REALESTATE DEVELOPER DARBY OVERSEAS WAS HATCHED LAST SUMMER BY MR BRADY HIS FORMER TOP AIDE AT THE TREASURY HOLLIS MCLOUGHLIN AND DANIEL MARX ARGENTINA'S NO 2 FINANCE OFFICIAL WHEN THE THREE WERE ON A WILDLIFE EXPEDITION TO ARGENTINA'S RUGGED PATAGONIA REGION EARLIER THIS MONTH MR MARX RESIGNED HIS JOB AS ARGENTINA'S UNDERSECRETARY OF FINANCE TO JOIN DARBY OVERSEAS AS A MANAGING DIRECTOR IT'S A PRIVATE FIRM WHICH IS GOING TO BE INVESTING IN THE EMERGING MARKETS WITH A PROBABLE FOCUS ON LATIN AMERICA SAID MR BRADY AT THE COMPANY'S HEADQUARTERS IN EASTON MD WE'LL BE LOOKING OUTSIDE THE US FOR INVESTMENTS FOR OUR OWN ACCOUNT AND THE ACCOUNT OF OUR FRIENDS BUT SOME INSTITUTIONAL INVESTORS REGARD LATIN AMERICA AS AMPLY PICKED OVER DOES MR BRADY KNOW SOMETHING THEY DON'T IN A WORD YES BUT IT ISN'T WHAT SO MUCH AS WHO HE KNOWS IN THE US MR BRADY IS FAMOUS NOT FOR INVESTMENT EXPERTISE BUT FOR HIS SIGNATURE ON US CURRENCY HIS BRADY COMMISSION REPORT ON THE 1987 STOCKMARKET CRASH AND FOR HIS LOWBALL ESTIMATES OF HOW MUCH IT WOULD COST TAXPAYERS TO BAIL OUT THE SAVINGS AND LOAN INDUSTRY OVERSEAS IT'S A DIFFERENT STORY IN 1989 THENTREASURY SECRETARY BRADY INTRODUCED WHAT BECAME KNOWN AS THE BRADY PLAN THROUGH WHICH DEBTOR NATIONS COULD REPACKAGE LARGE AMOUNTS OF THEIR DEBT INTO EASILY TRADABLE BONDS DUBBED BRADY BONDS NOW HIS NAME HAS UNDENIABLE DOOROPENING POWER IN LATIN AMERICA BUT THE DARBY GROUP'S SECRET WEAPON SAYS ONE OF THE GROUP'S OUTSIDE INVESTORS IS MR MARX WELLCONNECTED IN HIS OWN RIGHT MR MARX LAST YEAR SPEARHEADED ONE OF THE LARGEST PUBLIC OFFERINGS EVER THE 27 BILLION SALE OF A MAJORITY STAKE IN THE ARGENTINE STATEOWNED OIL COMPANY YACIMIENTOS PETROLIFEROS FISCALES KNOWN AS YPF HE IS BEST KNOWN AS ARGENTINA'S CHIEF DEBT NEGOTIATOR DARBY OVERSEAS WILL PROVIDE WORKING CAPITAL TO PRIVATELY HELD MANUFACTURING CONSUMERPRODUCT AND TELECOMMUNICATIONS COMPANIES WITH AN EYE TOWARD RESTRUCTURING THEM AND TAKING THEM PUBLIC IN SEVERAL YEARS JAY PELOSKY DIRECTOR OF LATIN AMERICAN RESEARCH AND STRATEGY AT MORGAN STANLEY GROUP INC SAYS THE BIGMONEY GUYS ARE PUSHING INTO PRIVATE PLACEMENTS THE IDEA HE SAYS IS THAT THREE TO FIVE YEARS DOWN THE ROAD YOU HAVE A MORE DEVELOPED LIQUID MARKET AND THE INVESTMENTS CAN BE REPACKAGED AND SOLD PROFITABLY AS INITIAL PUBLIC OFFERINGS AMONG THE RISKS MR PELOSKY NOTES IS THAT LOCAL CURRENCIES MAY DEVALUE RAPIDLY AND THAT DARBY WOULDN'T HAVE A WAY OF BAILING OUT IF THE INVESTMENT DOESN'T WORK IT WON'T BE EASY IN LATIN AMERICA THESE DAYS THE MOST OBVIOUS OPPORTUNITIES FOR PROFIT ARE GONE SAYS IGNACIO SOSA MANAGING DIRECTOR OF THE EMERGINGMARKETS SALES GROUP OF BANKERS TRUST BUT IT'S NOT TOO LATE TO MAKE MONEY IN THE COMPANIES THAT THE PEOPLE WHO READ RESEARCH REPORTS AREN'T GOING TO FIND HE AGREES THESE COMPANIES HAVE BEEN OPERATING ON FAMILY MONEY AND THEY'RE GOING TO NEED TO GO TO THE CAPITAL MARKETS TO COMPETE TO GROW IN FACT DARBY INVESTORS ARE BETTING THE TWIN MARQUEE NAMES OF BRADY AND MARX WILL BE ENOUGH TO OVERCOME ANY RELUCTANCE THESE FAMILIES MIGHT HAVE TO SURRENDERING PARTIAL OWNERSHIP OF THEIR FIRMS WHEN BRADY AND MARX CALL PEOPLE ANSWER THE PHONE OBSERVES A WALL STREET EXECUTIVE WHO SPECIALIZES IN LATIN AMERICAN INVESTMENTS THEY WILL BE TOLD THINGS THAT THESE COMPANIES WOULD NEVER TELL A BIG US FUND MANAGER REACHED IN BUENOS AIRES MR MARX SAID WHAT MR BRADY BRINGS TO THE PARTY IS HIS CAPABILITY AND HIS REPUTATION AND WHAT WE HAVE IN COMMON ALL OF US IS THAT WE'VE ALWAYS WORKED ON SITUATIONS BRINGING THINGS PUBLIC BUT SPOTTING GOOD INVESTMENTS MAY BE HARDER THAN THE PARTNERS' FIRST SHARED EFFORT SPOTTING SEA LIONS DURING THEIR PATAGONIAN EXPEDITION THE PRINCIPALS OF DARBY OVERSEAS DON'T DENY THAT LATIN AMERICAN INVESTING HAS BECOME SOMETHING OF A FAD AND THE COMPANY IS ESSENTIALLY MAKING THE SAME BET THE REST OF THE INSTITUTIONAL INVESTOR COMMUNITY HAS ALREADY MADE THAT LATIN AMERICANS WITH IMPROVING ECONOMIES WILL WANT A HIGHER STANDARD OF LIVING BUT THEY SAY THEY WILL STAY LONG AFTER THE FAD HAS FADED ALSO SERVING AS A MANAGING DIRECTOR OF THE FIRM WILL BE MICHAEL CURTAIN FORMER EXECUTIVE VICE PRESIDENT OF THE INTERAMERICAN DEVELOPMENT BANK AND NOW A VICE PRESIDENT OF BECHTEL ENTERPRISES INC THE DEVELOPMENTAL AND FINANCING ARM OF PRIVATELY HELD BECHTEL GROUP INC INVESTORS IN DARBY OVERSEAS INCLUDE JOHN BIRKELUND CHAIRMAN OF DILLON READ AND GEORGE WEGERS A FORMER MANAGING DIRECTOR OF THE INVESTMENTBANKING BOUTIQUE THE PLAYERS ARE OF SUCH SIGNIFICANCE SAYS ONE OF THE INVESTORS THAT IT WILL AT LEAST BE INTERESTING PETER TRUELL CONTRIBUTED TO THIS ARTICLE 9402240051 940201 PRICING HEALTH CARE GERMANY IS NOT A MODEL BY WILFRIED PREWO WE HAVE A LOT WE CAN LEARN FROM THE GERMANS PRESIDENT CLINTON SAID RECENTLY TRYING TO SELL HIS HEALTH CARE PLAN THE GERMANS ARE ABLE TO PROVIDE A VERY HIGHQUALITY HEALTH CARE SYSTEM AT A MUCH LOWER COST THAN WE ARE BECAUSE THEY HAVE MUCH MORE DISCIPLINE IN THE WAY IT'S ORGANIZED AND FINANCED IN AN ADDRESS TO THE NATIONAL GOVERNORS ASSOCIATION YESTERDAY GERMAN CHANCELLOR HELMUT KOHL SAID THAT IN THE RUNUP TO AMERICA'S HEALTH CARE REFORM THERE WAS AN INTENSE EXCHANGE OF OPINIONS BETWEEN AMERICAN AND GERMAN EXPERTS ON THE SURFACE THE GERMAN SYSTEM DOES INDEED LOOK GOOD IT INSURES SOCIETY COMPREHENSIVELY AND GIVES INDIVIDUALS QUALITY COVERAGE THAT IS PERMANENT AND PORTABLE FROM JOB TO JOB GERMANY SPENDS ABOUT 106 OF ITS GROSS DOMESTIC PRODUCT ON HEALTH AS OPPOSED TO ABOUT 14 SPENT IN THE US BUT SIMPLE COMPARISONS ARE MISLEADING GERMANY AND THE US DIFFER GREATLY IN ASPECTS NOT CONTROLLED BY DOCTORS AND HOSPITALS SUCH AS CRIMERELATED INJURIES MALPRACTICE INSURANCE AND NURSING CARE FOR THE ELDERLY IT IS WORTH NOTING TOO THAT THE COSTS OF GERMANY'S PLAN HAVE RISEN BY A SHARP 23 AFTER INFLATION OVER THE PAST THREE YEARS IT PAYS TO TAKE A GOOD LOOK AT THE GERMAN SYSTEM BEFORE PRESCRIBING IT IN THE US THE SIMILARITIES BETWEEN THE CLINTON PLAN AND THE GERMAN SYSTEM ARE STRIKING THE PRESIDENT WANTS UNIVERSAL COVERAGE GERMANY HAS NEARLY ACHIEVED THAT GERMAN LAW MANDATES THAT EVERYONE ENROLL IN THE HEALTH INSURANCE SYSTEM WITH THE IMPORTANT EXCEPTION OF HIGHER INCOME EARNERS MAKING MORE THAN 3300 A MONTH THE OPTOUT INCOME LEVEL IS SET RELATIVELY HIGH SO THAT ABOUT 74 OF GERMANS MUST JOIN ANOTHER 14 VOLUNTARILY JOIN OR STAY IN THE STATUTORY HEALTH SYSTEM ALTHOUGH THEIR INCOME HAS RISEN BEYOND THE CUTOFF ABOUT 10 HIGHERINCOME EMPLOYEES SELFEMPLOYED HAVE PRIVATE INSURANCE AND FEWER THAN 1 HAVE NO INSURANCE REGIONAL HEALTH ALLIANCES A BIG CLINTON IDEA ARE THE CORNERSTONE OF THE GERMAN SYSTEM COMPANIES WITH MORE THAN 1000 EMPLOYEES 5000 IN THE CLINTON PLAN HAVE THE OPTION OF FORMING A CORPORATE ALLIANCE THESE ROUGHLY 1000 REGIONAL OR OTHER ALLIANCES ARE THE MONOPOLY BUYERS OF MEDICAL SERVICES FOR THE 88 OF GERMANS WHO BELONG TO THE STATUTORY SYSTEM THE CLINTON TEAM WANTS A SYSTEM THAT GUARANTEES IDENTICAL BENEFIT STANDARDS FOR ALL ALLIANCES THE AMERICAN DEBATE OVER COVERAGE FOR MAMMOGRAMS AND PROSTATECANCER TESTS ALREADY GIVES A WHIFF OF HOW CONTROVERSIAL THE CONTENTS OF THIS LIST WILL BE IN GERMANY WHICH ALREADY HAS SUCH UNIFIED STANDARDS THE CONTENTS OF THE LIST ARE SO IMPORTANT THEY CAN AFFECT ELECTIONS COVERAGE OF ABORTIONS FOR EXAMPLE WILL PLAY A ROLE IN ELECTIONS THIS YEAR THE NET RESULT GERMANY SHOWS IS THAT THE LIST SIMPLY GROWS OVER THE YEARS GERMANS PAY FOR THEIR PLAN THROUGH WHAT IS ESSENTIALLY A PAYROLL TAX JUST AS THE PRESIDENT WOULD HAVE AMERICANS DO EMPLOYERS AND EMPLOYEES IN GERMANY EACH PAY HALF OF THE TAX RATHER THAN THE 8020 SPLIT PROPOSED IN THE CLINTON PLAN THE TAX RATE DIFFERS AMONG THE ALLIANCES RANGING FROM 8 TO 168 OF PAYROLL AGGREGATE OF EMPLOYER AND EMPLOYEE SHARE WITH AN AVERAGE OF 134 YET GERMANY'S PROGRAM GIVES US CLEAR EVIDENCE OF THE DEGREE TO WHICH THIS SYSTEM LENDS ITSELF TO ABUSE ONCE THEIR TAX IS PAID GERMANS GRAZE THEMSELVES TO OBESITY ON MEDICAL SERVICES THE CLINTON PLAN HAS THE SAME BIAS TOWARD EXCESSIVE INDIVIDUAL USE OF MEDICAL SERVICES AT THE EXPENSE OF ALL MEMBERS OF AN ALLIANCE THE GERMAN SYSTEM'S MAJOR FAULT IS THAT IT DOESN'T PUT PEOPLE FIRST IN THE SENSE OF BUILDING ON INDIVIDUAL RESPONSIBILITY AND CONTROL THROUGH EFFECTIVE COPAYMENTS AND OTHER INCENTIVES TO SAVE IT IS INTERESTING THAT CORPORATE ALLIANCES ORGANIZED BY COMPANIES THAT HAVE AN INTEREST IN HOLDING THEIR OWN 50 SHARE DOWN TYPICALLY HAVE PREMIUMS FAR BELOW THE AVERAGE REGIONAL ALLIANCE THE CLINTON PLAN'S CRITICS BELIEVE THAT THIS SYSTEM ALSO STRENGTHENS BUREAUCRACY THE GERMAN PLAN PROVES THEM CORRECT WHILE THE ALLIANCES WERE ORIGINALLY DEVISED AS NONGOVERNMENTAL HEALTH PLAN PURCHASING COOPERATIVES THEY HAVE DEGENERATED INTO DE FACTO GOVERNMENT AGENCIES SOME 112000 EMPLOYEES IN WESTERN GERMANY ALONE WORK FOR ALLIANCES THEIR ADMINISTRATIVE COSTS PER MEMBER HAVING RISEN BY 535 ADJUSTED FOR INFLATION FROM 1982 TO 1992 THIS IS MORE THAN THE INCREASE IN THE ALLIANCES' TOTAL HEALTH COSTS REVEALING THAT THE DISEASE OF BUREAUCRACY IS THE REAL PROBLEM THE CLINTON PLAN'S CRITICS ALSO FEAR THAT IT WILL QUICKLY BECOME A SINGLEPAYER SYSTEM IN EFFECT GERMANY'S HAS ALREADY BECOME ONE FINANCED BY THE PAYROLL TAX FOR THE 88 IN THE STATUTORY SYSTEM PATIENTS DO NOT SEE A DOCTOR'S BILL THUS THEY HAVE NO WAY OF REALIZING WHETHER THE CHARGE FOR A SERVICE HAS BEEN PARTICULARLY EXPENSIVE OR EVEN WHETHER THE SERVICE HAS ACTUALLY BEEN RENDERED THE DOCTOR SENDS HIS BILL TO HIS REGIONAL ASSOCIATION OF PHYSICIANS AS THE FINANCIAL CLEARING HOUSE AND COUNTERPART OF THE PATIENT'S ALLIANCE HIDDEN TAXES A FLAW IN THE CLINTON PLAN ARE ALREADY PART OF THE GERMAN PLAN BECAUSE THE AVERAGE GERMAN CARRIES ONLY 50 OF HIS HEALTH CARE COSTS DIRECTLY HE IS AWARE OF ONLY HIS 50 AND INCREASES MAY NOT BOTHER HIM TOO MUCH BUT THE 50 THE EMPLOYER CARRIES IS REFLECTED IN OVERALL LABOR COSTS THAT MAKE GERMANY THE SECONDMOSTEXPENSIVE COUNTRY IN THE WORLD TO EMPLOY PEOPLE AFTER SWITZERLAND AND ONE WITH HIGHER UNEMPLOYMENT THAN THE US UNDER THE PLANNED 80 EMPLOYER COSTSHARING IN THE CLINTON PLAN THIS LABORDEPRESSING EFFECT WOULD EVEN BE MORE PRONOUNCED IN THE US COSTSHARING AND LACK OF INCENTIVES TO SAVE FORM A POTENT DRUG DRIVING HEALTH COSTS UP UNOBSERVED HIDDEN TAXES GROW THE GERMAN PAYROLL TAX ROSE FROM AN AVERAGE OF 6 IN 1950 TO 84 IN 1960 AND 114 IN 1980 BEFORE REACHING ITS CURRENT 134 FINANCIALLY THE GERMAN PLAN IS ALSO NO MODEL FOR 20 YEARS IT HAS VACILLATED BETWEEN FINANCIAL DISTRESS AND COLLAPSE AND THE GOVERNMENT HAS INTRUDED WITH EVERTIGHTER REGULATIONS SINCE 1977 ALONE THERE HAVE BEEN NINE FEDERAL LAWS TRYING TO CURB COSTS GERMAN MEASURES TO CONTROL COSTS FORESHADOW THE RESULTS OF THE CLINTON PLAN PRICE CONTROLS AND CONTROL OF SUPPLY LAST YEAR PHYSICIANS DENTISTS AND PRESCRIPTION DRUGS WERE EACH AS A GROUP SUBJECTED TO NARROW BUDGET CAPS AND TIGHT REGIONAL QUOTAS NOW LIMIT THE NUMBER OF DOCTORS ALLOWED TO PRACTICE UNDER THE SYSTEM THE PHYSICIAN ASSOCIATIONS HAVE TO POLICE THEIR MEMBERS WITH RESPECT TO EXCESSIVE ABOVEAVERAGE SERVICES MORE COSTEFFECTIVE PARTICULARLY CORPORATE ALLIANCES NOW HAVE TO CROSSSUBSIDIZE HIGHCOST ALLIANCES THUS REWARDING INEFFICIENCY IN THE NAME OF SOLIDARITY PRUDENT INSURED PEOPLE AND PRUDENT DOCTORS ARE STILL NOT REWARDED FOR COST SAVINGS IN THE FORM OF LOWER PREMIUMS OR BONUSES NEEDLESS TO SAY ALL REFORM ATTEMPTS HAVE MISSED THEIR TARGETS ALTHOUGH ONLY 10 OF GERMANS ARE COVERED BY PRIVATE INSURANCE IT OFFERS SOME OBVIOUS LESSONS FOR EVERYONE FIRST PAYROLL TAXES IN THE STATUTORY SYSTEM ARE 25 HIGHER THAN PRIVATE PREMIUMS SINCE PRIVATE INSURERS COMPETE VIGOROUSLY THEIR BENEFITS ARE BETTER AND THE ADMINISTRATIVE COST PER INSURED PERSON IS ONLY HALF SECOND THE PRIVATE ALTERNATIVE FORCES THE STATUTORY SYSTEM TO IMPROVE WITHIN LIMITS SINCE OTHERWISE ITS VOLUNTARY MEMBERS WOULD OPT OUT FOR PRIVATE INSURANCE THIS BENEFICIAL EFFECT IS INDIRECTLY EVIDENCED BY THE LARGER INEFFICIENCIES IN COUNTRIES THAT FORCE EVERYBODY INTO A STATUTORY SYSTEM MAYBE THE CLINTON TEAM LOOKED AT VARIOUS STATUTORY SYSTEMS AND CONCLUDED THAT GERMANY'S LOOKED BEST THE ONEEYED IS KING AMONG THE BLIND BUT WHY DOES THE PRESIDENT WANT TO EMULATE THE 90 OF THE GERMAN SYSTEM THAT IS FAILING INSTEAD OF THE 10 THAT IS EFFECTIVE PERHAPS THE MOST INTERESTING REVELATION FROM THE GERMAN PLAN THOUGH IS THAT IT SHOWS HOW UNREALISTIC MR CLINTON'S IS IN THE US THE MAXIMUM PREMIUM TO AN ALLIANCE WILL BE ABOUT 10 OF PAYROLL THIS IS SUPPOSED TO PAY FOR HEALTH COSTS THAT NOW AMOUNT TO 14 OF GDP SET TO RISE TO 173 IN THE YEAR 2000 UNDER THE CLINTON PLAN'S REFORM PROJECTIONS 189 OTHERWISE IF A 134 PAYROLL TAX IN GERMANY IS NEEDED TO FINANCE 106 OF GDP IT IS HARD TO CONCEIVE HOW IN THE US A MUCH SMALLER PAYROLL TAX OF 10 CAN FINANCE US HEALTH CARE COSTS AT A MUCH LARGER SHARE OF 14 TO 17 OF GDP THE MISSING GAP IS TOO LARGE TO BE FILLED BY THE DESIGNATED SUBSIDIES AND SIN TAXES IF YOU WANT TO COPY PAGES OUT OF THE GERMAN SOCIAL POLICY BOOK HAVE YOUR CHECKBOOK HANDY MR PREWO IS CHIEF EXECUTIVE OF THE CHAMBER OF INDUSTRY AND COMMERCE IN HANOVER GERMANY SEE RELATED LETTER THE HEALTH PLAN'S BUILTIN DEFICIT WSJ FEB 24 1994 9402010123 YY94 MM02 9402240050 940224 BUSINESS BRIEF AVON PRODUCTS INC FIRM SEES QUARTERLY GAINS AFTER DIFFICULT TIMES IN '93 AFTER A DIFFICULT YEAR MARRED BY SAGGING EARNINGS IN ITS US UNIT AVON PRODUCTS INC SAID ITS AVON LADIES ARE RINGING UP MORE SALES JAMES E PRESTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT THE BEAUTY PRODUCTS COMPANY NOW EXPECTS SALES IN THE FIRST QUARTER TO BE UP 5 TO 7 AND EARNINGS FROM CONTINUING OPERATIONS TO INCREASE 13 TO 16 MUCH OF THE IMPROVEMENT WILL COME FROM AVON'S US BUSINESS WHICH IS PROJECTED TO POST SALES GAINS OF 5 TO 7 AND PRETAX PROFIT TO GROW 25 TO 35 LAST YEAR AVON POSTED A FIRSTQUARTER LOSS OF 929 MILLION OR 129 A SHARE WHICH REFLECTED ONE CHARGE FOR ACCOUNTING AND ANOTHER FOR AN ARBITRATION AWARD AGAINST THE COMPANY EXCLUDING THE NONRECURRING ITEMS NET INCOME WAS UP 10 TO 246 MILLION THE SALES IMPROVEMENT WE SAW JUST PRIOR TO CHRISTMAS HAS CONTINUED MR PRESTON SAID IN NEW YORK 9402240049 940224 ECONOMY NATIONWIDE BANK BILL CLEARS SENATE PANEL PLAN FOR BRANCH NETWORKS APPEARS TO BE HEADED FOR PASSAGE IN CONGRESS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE BANKING COMMITTEE VOTED UNANIMOUSLY TO ALLOW BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS ADDING POLITICAL MOMENTUM TO A PROPOSAL THAT WOULD CHANGE THE SHAPE OF AMERICAN BANKING NATIONWIDE BANKING IS MOVING FORWARD IN THE HOUSE AS WELL AND BARRING UNEXPECTED OBSTACLES APPEARS HEADED FOR PASSAGE IN THIS CONGRESS AFTER YEARS OF LOBBYING BY LARGE BANKING COMPANIES SUCH AS BANKAMERICA CORP AND NATIONSBANK CORP THE CHANCES ARE VERY GOOD SAID COMMITTEE CHAIRMAN DONALD RIEGLE D MICH THIS BILL HAS A GOOD HEAD OF STEAM PASSAGE OF THE BILL WOULD ACCELERATE THE CURRENT WAVE OF BANK ACQUISITIONS AS BIG COMPANIES RUSH TO CONSTRUCT NATIONWIDE EMPIRES FOR CONSUMERS AND BUSINESSES NATIONWIDE BRANCH NETWORKS WOULD MAKE IT EASIER TO USE ONE BANK FOR ALL THEIR BANKING NEEDS NO MATTER WHERE THEY WERE IN THE COUNTRY THE CHANGE WOULD BE PARTICULARLY CONVENIENT FOR THE FOUR MILLION WORKERS WHO COMMUTE DAILY ACROSS STATE LINES CURRENT LAWS GENERALLY REQUIRE BANKING COMPANIES TO OPERATE SEPARATELY CHARTERED BANKS IN EACH STATE FOR EXAMPLE A CONNECTICUT RESIDENT WHO WORKS IN NEW YORK CITY AND HAS AN ACCOUNT AT A CHASE MANHATTAN BANK THERE COULDN'T DEPOSIT MONEY INTO THAT ACCOUNT THROUGH A CHASE BANK IN CONNECTICUT NATIONWIDE BANKING WOULD ALLOW BANKING COMPANIES TO CONSOLIDATE SEPARATE OPERATIONS IN DIFFERENT STATES INTO UNIFIED NETWORKS THIS WOULD SAVE THE BANKING INDUSTRY BILLIONS OF DOLLARS A YEAR BY ELIMINATING DUPLICATIVE ACCOUNTING MANAGEMENT AND OTHER SYSTEMS ONE YEAR AFTER ENACTMENT THE SENATE PLAN WOULD ALLOW BANKS THAT ARE DEEMED ADEQUATELY CAPITALIZED AND WELLMANAGED TO ACQUIRE EXISTING BANKS IN ANY STATE AS LONG AS THE ACQUISITION DIDN'T BOOST THE BANKING COMPANY'S SHARE OF FEDERALLY INSURED DEPOSITS BEYOND 25 OF THOSE IN THE STATE OR 10 OF THOSE IN THE COUNTRY THIS WOULD REPEAL THE 1956 DOUGLAS AMENDMENT THAT PREVENTS BANK HOLDING COMPANIES FROM ACQUIRING BANKS OUTSIDE THEIR HOME STATES WITHOUT APPROVAL FROM THE STATE OF THE BANK BEING ACQUIRED MOST STATES ALREADY ALLOW INTERSTATE ACQUISITIONS TO SOME DEGREE BUT UNDER THE 1927 MCFADDEN ACT THE BANKS HAVE TO BE OPERATED SEPARATELY RATHER THAN AS PART OF A COHERENT BRANCH NETWORK TWO YEARS AFTER ENACTMENT THE SENATE PLAN WOULD ALLOW BANKS TO COMBINE MULTISTATE OPERATIONS INTO A UNIFIED BRANCH SYSTEM STATES WOULD HAVE THE RIGHT TO OPT OUT OF THIS ARRANGEMENT OR TO ALLOW A FASTER CONSOLIDATION A PANEL OF THE HOUSE BANKING COMMITTEE HAS CLEARED A BILL THAT DOES THE SAME THING BUT ON A DIFFERENT SCHEDULE THE FULL HOUSE BANKING COMMITTEE IS EXPECTED TO CONSIDER THE MEASURE IN EARLY MARCH A COALITION OF CONSUMER GROUPS COMPLAINED YESTERDAY THAT THE SENATE BILL ALLOWS FEDERAL REGULATORS TO PREEMPT STATE CONSUMERPROTECTION LAWS IN THE HOUSE BANKING COMMITTEE CONSUMER GROUPS MAY PRESS TO WIN STRONGER COMMUNITYREINVESTMENT REQUIREMENTS AND NEW LOWCOST BASIC BANKING SERVICES FOR LOWINCOME CUSTOMERS THE BANKING INDUSTRY OPPOSES THESE MEASURES FOR SEVERAL YEARS EFFORTS TO ALLOW THE CREATION OF NATIONWIDE BANKING NETWORKS HAVE FAILED BECAUSE INSURANCE AGENTS A POLITICALLY POWERFUL GROUP HAVE TRIED TO USE THE BILLS AS VEHICLES FOR LIMITS ON INSURANCE SALES BY BANKS BANKS DETERMINED TO PRESERVE THEIR RIGHT TO SELL A WIDER RANGE OF FINANCIAL PRODUCTS OPPOSED ANY BILL WITH INSURANCE RESTRICTIONS EARLIER THIS MONTH SEN CHRISTOPHER DODD D CONN AN INSURANCE ALLY SAID HE WOULD NO LONGER SUPPORT AN INSURANCE AMENDMENT THAT HAD BLOCKED PASSAGE OF INTERSTATE BANKING RARELY IN MY PUBLIC LIFE HAVE I BEEN ABLE TO MAKE SO MANY PEOPLE HAPPY AT ONE TIME HE SAID YESTERDAY TO A HEARING ROOM FILLED WITH BANK LOBBYISTS HE SAID HE WOULD LIKE TO SEE AN INTERSTATEBANKING BILL ON PRESIDENT CLINTON'S DESK BY MEMORIAL DAY THE ADMINISTRATION SUPPORTS INTERSTATE BANKING 9402240048 940224 BUSINESS BRIEF NIAGARA MOHAWK DEBT AND PREFERRED RATINGS ARE REDUCED BY S&P NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON ABOUT 44 BILLION OF DEBT AND PREFERRED STOCK OF NIAGARA MOHAWK POWER CORP SYRACUSE NY REFLECTING PROSPECTS FOR INSUFFICIENT FINANCIAL IMPROVEMENT S&P LOWERED RATINGS ON SENIOR SECURED DEBT TO TRIPLEBMINUS FROM TRIPLEB AND SENIOR UNSECURED DEBT AND PREFERRED STOCK TO DOUBLEBPLUS FROM TRIPLEBMINUS COMMERCIAL PAPER DECLINED TO SINGLEA3 FROM SINGLEA2 S&P SAID THAT DESPITE STEPS TO CONTROL EXPENSES AND LIMIT EXPOSURE TO OBLIGATIONS TO BUY POWER FROM NONUTILITY THIRD PARTIES MATERIAL FINANCIAL IMPROVEMENT IS EXPECTED TO BE CONSTRAINED BY WEAK SALES GROWTH PROSPECTS INCREASING FIXED CHARGES TIED TO NONUTILITY GENERATORS AND MODEST REVENUE LOSSES TIED TO DISCOUNTED RATES FOR CERTAIN LARGER CUSTOMERS THE REPORT SAID NIAGARA MOHAWK WILL BE CHALLENGED TO SUSTAIN THE STRONG 1993 PERFORMANCE OF THE NINE MILE POINT NUCLEAR FACILITY TO NEGOTIATE CONTRACTS WITH RETAIL CUSTOMERS WHO CAN BUY POWER ELSEWHERE AND TO CONTAIN COSTS AND MINIMIZE FUTURE RATERELIEF NEEDS AN OVERSUPPLY OF NONUTILITY POWER WILL CONTINUE TO PUT PRESSURE ON ELECTRIC RATES AND RESULT IN EXCESS CAPACITY S&P SAID COMMENTING ON THE S&P DOWNGRADE A NIAGARA MOHAWK SPOKESWOMAN CONCEDED THAT THE INDUSTRY'S BUSINESS RISKS ARE INCREASING BUT STRESSED THAT THE COMPANY HAS STARTED MAKING PROGRESS IN ITS COSTCUTTING MEASURES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NIAGARA MOHAWK SHARES FELL 125 CENTS TO 18625 9402240047 940224 BUSINESS BRIEF DURACRAFT CORP COMPANY EXPECTS TO REPORT THAT NET TRIPLED IN QUARTER DURACRAFT CORP EXPECTS TO REPORT THAT NET INCOME FOR THE FOURTH QUARTER NEARLY TRIPLED TO ABOUT 15 MILLION OR 30 CENTS A SHARE FROM 572000 OR 15 CENTS SAID BERNARD CHIU CHAIRMAN AND PRESIDENT THE WHITINSVILLE MASS MAKER OF HEATERS HUMIDIFIERS AND FANS EXPECTS TO REPORT MONDAY THAT SALES ROSE MORE THAN 40 TO ABOUT 20 MILLION FROM 14 MILLION DURACRAFT WENT PUBLIC IN NOVEMBER SELLING 184 MILLION SHARES AVERAGE SHARES FOR THE LATEST QUARTER WERE FIVE MILLION COMPARED TO 375 MILLION THE YEAR BEFORE MR CHIU SAID THE IMPROVED RESULTS REFLECT STRONG SALES IMPROVED MANUFACTURING EFFICIENCY AND INTRODUCTION OF SOME HIGHERMARGIN PRODUCTS FOR 1993 DURACRAFT IS EXPECTED TO REPORT THAT NET MORE THAN DOUBLED TO ABOUT 5 MILLION OR 125 A SHARE FROM 23 MILLION OR 62 CENTS A SHARE REVENUE ROSE ABOUT 34 TO AROUND 75 MILLION FROM 56 MILLION 9402240046 940224 LEISURE & ARTS BOOKSHELF THREE TALES OF OBSESSION BY LEE LESCAZE WHEN A MOVIE WAS MADE OF JUNICHIRO TANIZAKI'S EXOTIC NOVEL THE KEY IT WAS TITLED ODD OBSESSION FOR ONCE THE FILMMAKERS HAD IT RIGHT OBSESSION POSSESSED TANIZAKI'S IMAGINATION IN BOOK AFTER BOOK HE DESCRIBED IN ELEGANT DETAIL AND SOMETIMES AMAZING VARIETY RELATIONSHIPS BETWEEN THE ADORED AND THE ADORING QUICKSAND KNOPF 224 PAGES 22 AND TWO NOVELLAS THE REED CUTTER AND CAPTAIN SHIGEMOTO'S MOTHER KNOPF 180 PAGES 22 ARE THE LAST OF TANIZAKI'S MAJOR FICTIONS TO BE TRANSLATED INTO ENGLISH ALL THREE COULD BE TITLED ODD OBSESSIONS IN QUICKSAND A LEISURED YOUNG WIFE FALLS UNDER THE SPELL OF A BEAUTIFUL WOMAN SHE MEETS AT AN ART CLASS SONOKO KAKIUCHI NARRATES THE STORY OF HER OBSESSION HALF AWARE OF HER FOLLY HALF MAKING EXCUSES FOR HERSELF FOR MITSUKO TOKUMITSU THE OBJECT OF SONOKO'S DESIRE THE THRILL IS IN BEING LOVED AND MAKING HER LOVERS SUBMIT ONCE SHE TELLS SONOKO I'D MUCH RATHER BE WORSHIPED BY SOMEONE OF MY OWN SEX IT'S NATURAL FOR A MAN TO LOOK AT A WOMAN AND THINK SHE'S BEAUTIFUL BUT WHEN I REALIZE I CAN HAVE ANOTHER WOMAN INFATUATED WITH ME I ASK MYSELF IF I'M REALLY THAT BEAUTIFUL IT MAKES ME BLISSFULLY HAPPY OBSESSION IS NEVER FAR REMOVED FROM THE THOUGHT OF DEATH IN TANIZAKI SONOKO AND MITSUKO HAVEN'T BEEN MEETING SECRETLY FOR VERY LONG BEFORE SONOKO IS EXCLAIMING SUCH A BEAUTIFUL BODY I COULD KILL YOU TO WHICH MITSUKO RESPONDS GO AHEAD AND KILL ME I WANT YOU TO TIME HAS NOT BEEN KIND TO DIALOGUE LIKE THIS OR TO THE EMOTIONS THAT TANIZAKI SOUGHT TO CAPTURE THE STORY PROGRESSES TO A DOCUMENT SEALED IN BLOOD TWO SUCCESSIVE LOVE TRIANGLES WITH MITSUKO AT THEIR APEX AND FINALLY TO THE TOTAL SUBMISSION OF NOT ONLY SONOKO BUT ALSO HER HUSBAND TO THE WILL OF THE ENCHANTRESS IN THE US IN 1994 I'M AFRAID THAT SONOKO AND MITSUKO SEEM NOT PASSIONATE NOR DEPRAVED NOR SENSUAL BUT ONLY LAUGHABLE TANIZAKI WHO DIED IN 1965 SET THE NOVEL IN 1928 OSAKA AND PUBLISHED IT SERIALLY FROM 1928 THROUGH 1930 HIS WAS A FAR DIFFERENT WORLD YET IN ONE RESPECT OUR WORLD IS SIMILAR WHEN IN THE NOVEL A VENGEFUL MAID TELLS THE SONOKOMITSUKO STORY TO THE PRESS SCANDAL SHEETS HAVE A FIELD DAY THEY PIOUSLY DECLARE OF COURSE THAT THE STORY SERVES A USEFUL PURPOSE IN EXPOSING THE SORDID VICES OF THE LEISURE CLASS TANIZAKI ONE OF JAPAN'S MOST PRIZED NOVELISTS OF THIS CENTURY IS PROBABLY BEST KNOWN IN THE US FOR SOME PREFER NETTLES AND THE MAKIOKA SISTERS HIS PROSE IS REPORTEDLY EXTREMELY HARD TO TRANSLATE BUT YOU COULDN'T TELL THAT FROM EITHER HOWARD HIBBETT'S WORK ON QUICKSAND OR ANTHONY H CHAMBERS'S RENDERING OF THE NOVELLAS TANIZAKI OFTEN SET HIS TALES IN THE DISTANT PAST THE REED CUTTER IS A CONTEMPORARY TALE BUT SUFFUSED WITH THE LITERATURE OF EARLIER TIMES A MAN BEGINS A SOLITARY WALK BROODING ON A 14THCENTURY HISTORICAL NARRATIVE THE RIVERINE LANDSCAPE HE PASSES WAS THE SETTING FOR GREAT HISTORICAL EVENTS AND HIS MIND IS SO ALIVE TO THE PAST THAT HE ALMOST HEARS THE VOICES OF THE LONGDEAD NOBLES THE LANDSCAPE THE PAST HIS OWN APPROACHING OLD AGE ALL IMPRESS UPON HIM THE OBSERVATION OF A 12THCENTURY POETPRIEST THAT WHAT NEVER CHANGES IN ANY AGE IS THE WRETCHEDNESS OF HUMANITY HE FINDS A SPOT AMONG SOME REEDS THAT GIVES HIM THE VIEW HE HAS COME FOR OF THE MOON AND THE RIVER HE DRINKS SAKE AND WRITES IN HIS NOTEBOOK OUT OF THE REEDS COMES ANOTHER MAN WITH ANOTHER BOTTLE OF SAKE THE STRANGER OFFERS A STORY IT IS THE TALE OF HIS FATHER'S LIFE HOW HIS FATHER FELL DESPERATELY IN LOVE WITH A MARRIED WOMAN WORSHIPED HER FROM AFAR AND THEN WAS TEMPTED CLOSER AND CLOSER BY THE WOMAN BASKING IN HIS ADORATION TANIZAKI GIVES HIS STORY A FAIRYTALE TIMELESSNESS THAT MAKES IT THE BEST OF THESE THREE NEWLY TRANSLATED WORKS AT ITS END THE STORYTELLER DISAPPEARS LEAVING THE LISTENER TO WONDER WHETHER HE HAS BEEN LISTENING TO A GHOST CAPTAIN SHIGEMOTO'S MOTHER IS SET IN 10THCENTURY KYOTO AND COMBINES SEXUAL OBSESSION WITH ANOTHER MAJOR TANIZAKI THEME A MAN'S LOVE FOR HIS MOTHER ONCE AGAIN THE ADORING MEN REVOLVE AROUND A GREAT BEAUTY HERE THOUGH THE WOMAN IS A TOTALLY PASSIVE CREATURE PORTRAYED ONLY AS AN IMAGE IN MEN'S EYES SHE MARRIES A MAN MORE THAN 50 YEARS HER SENIOR HE DOTES ON HER AND TAKES ENORMOUS PRIDE IN HAVING FATHERED A CHILD WHILE IN HIS 70S NOT SURPRISINGLY THE WOMAN IS LESS ECSTATIC WITH HER SITUATION SHE TAKES AS AN OCCASIONAL LOVER ONE OF THE LEADING POETAMORISTS OF THE DAY AND HE IN TURN LAVISHLY DESCRIBES HER BEAUTY TO ONE OF THE GREAT NOBLEMEN OF THE TIME ENGLISH READERS WITHOUT A STRONG LIKING FOR TRANSLATED OLD CHINESE AND JAPANESE POETRY ARE LIKELY TO GROW IMPATIENT AS TANIZAKI LEISURELY ESTABLISHES HIS STORY'S MOMENTUM BUT AT ITS CENTER HE CREATES A QUITE WONDERFUL CRUEL BANQUET SCENE IN WHICH THE GREAT NOBLE PLAYS ON THE OLD HUSBAND'S DRUNKENNESS FOLLY AND SENSE OF SOCIAL INFERIORITY TO TAKE AWAY HIS WIFE THE OLD HUSBAND AND YOUNG SON ARE LEFT TO BATTLE WITH GRIEF FOR THE REST OF THEIR LIVES OBSESSED BY THE ABSENT WOMAN TANIZAKI'S WIDOW REMARKED THAT CAPTAIN SHIGEMOTO'S MOTHER WAS HER FAVORITE AMONG HER HUSBAND'S WORKS THEY MUST HAVE HAD AN INTERESTING MARRIAGE 9402240045 940224 LEISURE & ARTS FILM MIDNIGHT COWBOY' RIDES TALL AGAIN BY JULIE SALAMON WATCHING MIDNIGHT COWBOY ON A BIG MOVIE SCREEN IS BOTH EXHILARATING AND DEPRESSING NOW 25 YEARS OLD IT HASN'T LOST ITS POWER TO SHAKE YOU UP AS ONLY A POWERFUL MOVIE CAN DO THAT'S THE EXHILARATING PART THE DEPRESSION SETS IN LATER THINKING ABOUT MIDNIGHT COWBOY AND REALIZING HOW RARE THAT KIND OF EXPERIENCE HAS BECOME WITH ITS RERELEASE IN THEATERS MIDNIGHT COWBOY WILL ALMOST CERTAINLY BE THE MOST EXCITING NEW MOVIE THIS YEAR THE FILM'S GREATNESS AND DURABILITY COME FROM THE INTEGRITY OF ITS VISION IN THEIR ADAPTATION OF JAMES LEO HERLIHY'S NOVEL DIRECTOR JOHN SCHLESINGER AND SCREENWRITER WALDO SALT PAINT A BLEAK PICTURE OF AMERICAN LIFE IT MAY NOT BE FAIR THE SATIRE OFTEN VEERS OFF INTO CRUELTY IT CERTAINLY ISN'T POLITICALLY CORRECT BUT IT FITS THE EMOTIONAL TRUTH OF THE MAIN CHARACTERS JOE BUCK AND RATSO RIZZO THEY ARE THE DOWNANDOUTERS IN A HOSTILE WORLD WHO BRIEFLY FIND IN ONE ANOTHER A FRIENDLY WITNESS TO THEIR LONELY DREAMS THERE ARE NO SPEECHES ABOUT HOMELESSNESS OR HOMOSEXUALITY OR CHILD ABUSE OR FRIENDSHIP AS THERE SURELY WOULD BE IF THIS FILM WERE MADE TODAY BUT THEN IT'S HARD TO IMAGINE A HOLLYWOOD STUDIO ATTEMPTING SUCH A THING TODAY WHAT WORDS WOULD A TEST AUDIENCE USE TO DESCRIBE ITS RESPONSE TO A COMPLICATED PICTURE ABOUT THE BONDING BETWEEN A HUSTLER WHO SELLS HIMSELF TO WOMEN AND MEN AND A DIRTY STREET PUNK WITH A SEVERE LIMP AND AWFUL TEETH IN SOME WAYS THE FILM IS AN ARTIFACT OF A TIME THAT SOMETIMES SEEMS SO DISTANT IT MIGHT AS WELL BE THE PALEOLITHIC PERIOD IT'S NOT SO MUCH THE PERIOD DETAILS OF THE 1960S EVENTS LIKE THE HAPPENING A PARTY WHERE STONED PEOPLE VIDEOTAPE ONE ANOTHER SPOUTING MARIJUANA WISDOM AND HAVE SELFCONSCIOUS SEX ON AND OFF CAMERA IT'S THE STYLE THE ABSENCE OF SELFCONSCIOUSNESS AND SELFPROTECTIVE IRONY IN SO MANY FILMS TODAY THE CHARACTERS IN THE BETTER MOVIES ALWAYS SEEM TO BE COMMENTING ON THEIR EMOTIONS INSTEAD OF JUST HAVING THEM EVERYTHING IS SPELLED OUT NOT JUST WHAT THE CHARACTERS ARE DOING AND THINKING BUT HOW THE AUDIENCE SHOULD REACT TO THEM YET MIDNIGHT COWBOY DOESN'T SEEM CREAKY AT ALL OR EVEN DATED IN FACT ITS FLASHY VISUAL STYLE WAS AN INDICATION OF THINGS TO COME AND THE FILMMAKERS CLEVERLY LINKED THE MOVIE WITH ITS MUSIC AFTER SEEING MIDNIGHT COWBOY AGAIN IT IS IMPOSSIBLE TO CLEAR YOUR MIND OF ITS SIGNATURE SONG EVERYBODY'S TALKIN MIDNIGHT COWBOY ALSO MARKED THE BEGINNING OF THE END OF AN ERA I'M NOT TALKING ABOUT THE MOST OBVIOUS WAY THE MOVIE WAS RATED X WHEN IT WAS RELEASED AND RERATED AN R A FEW YEARS LATER WHEN ITS SEXUAL CONTENT NO LONGER SEEMED SHOCKING MIDNIGHT COWBOY WAS RELEASED IN 1969 AT THE BEGINNING OF THE LAST GREAT GASP OF AMERICAN FILMMAKING AFTER THE '70S MOVIES FOR GROWNUPS WOULD BECOME MORE AND MORE RARE THOUGH THERE ARE EXCEPTIONS THE MOVIES HAVE NEVER RECOVERED THEIR LITERACY THIS HINDSIGHT GIVES THE OPENING SHOT OF MIDNIGHT COWBOY A SPECIAL NOSTALGIA THE MOVIE OPENS ON A WHITE BACKGROUND WHICH AS THE CAMERA PULLS BACK TURNS OUT TO BE THE SCREEN AT A DRIVEIN MOVIE YOU CAN SEE BY THE SCRUB BRUSH THAT THIS IS THE WEST BUT THE ONLY COWBOYS ARE LITTLE BOYS RIDING THE TOY HORSES AT THE PLAYGROUND UNDER THE MOVIE SCREEN NOW OF COURSE THE DRIVEINS AS WELL AS THE COWBOYS HAVE DISAPPEARED JOE BUCK IS FROM THIS PLACE BOTH LITERALLY AND FIGURATIVELY AND HE WANTS TO LEAVE IT HE PUTS ON HIS COWBOY CLOTHES AND HEADS FOR NEW YORK DREAMING OF MAKING IT RICH AS A HUSTLER HE PLANS TO EARN HIS LIVING OFF OF RICH LADIES BUT FINDS HIMSELF HUSTLING YOUNG BOYS AND OLD MEN ON 42ND STREET INSTEAD YET TO THE END HE REMAINS TOUCHINGLY INNOCENT HIS HUMANITY UNTOUCHED BY THE SORDIDNESS HE CAN'T ESCAPE JON VOIGHT'S PORTRAYAL OF JOE REMAINS ASTONISHINGLY TOUCHING NOTHING KITSCH ABOUT IT IT'S MUCH MORE COMPLICATED WATCHING DUSTIN HOFFMAN'S RATSO RIZZO THE VERY SMALLTIME CON MAN WHO ALSO HAS A DREAM OF MOVING TO FLORIDA WITH HIS CRIPPLED MAN'S WALK AND BAD TEETH AND LOSER'S WHINE THE CHARACTER RATSO WAS A METHOD ACTOR'S DREAM SO MUCH TO DO ANGUISH SLYNESS PHYSICAL INFIRMITY AND MR HOFFMAN DID IT SO WELL THAT EVERYTHING HE'S DONE SINCE IN SOME WAY BRINGS RATSO RIZZO TO MIND YET AMAZINGLY WHEN YOU SEE DUSTIN HOFFMAN PLAYING RATSO RIZZO YOU DON'T THINK OF ANYTHING ELSE BELLE EPOQUE IS THE PRETTY AND FRIVOLOUS PICTURE THAT SWEPT THE SPANISH ACADEMY AWARDS LAST YEAR SET IN 1931 IT'S THE STORY OF A YOUNG MAN WHO FINDS HIMSELF IN THE COUNTRY HOME OF A WEALTHY MAN AND HIS THREE DAUGHTERS THE MAN WANTS A FRIEND THE DAUGHTERS ALL LOVELY WANT ROMANCE THE YOUNG MAN TRIES TO OBLIGE ALL OF THEM THOUGH THE FILM IS SET AGAINST THE BACKDROP OF THE SPANISH CIVIL WAR POLITICS SERVES ONLY CONVERSATION AND PUNCH LINES TO JOKES THAT MAY ELUDE THOSE NOT FAMILIAR WITH THE INTRICACIES OF SPANISH HISTORY DIRECTOR FERNANDO TRUEBA HAS A PAINTER'S EYE FOR LUSH COUNTRYSIDES AND LUSCIOUS HUMANS SO IT'S ALL VERY PLEASING TO LOOK AT YOUR ENJOYMENT OF IT WILL DEPEND ON HOW YOU FEEL ABOUT FILMS THAT CALL INTO USE THE VERB CAVORT VIDEO TIP I WANTED TO RECOMMEND A VERY GOOD DOCUMENTARY I ONCE SAW ON PUBLIC TELEVISION ABOUT THE LIFE OF THE LATE WALDO SALT WHO WROTE THE SCREENPLAY FOR MIDNIGHT COWBOY SALT HAD A DIFFICULT LIFE AND CAREER WHICH INCLUDED BEING BLACKLISTED AND SPENDING 10 YEARS WRITING TELEVISION SHOWS UNDER AN ALIAS UNFORTUNATELY THE DOCUMENTARY APPARENTLY ISN'T AVAILABLE AT VIDEO STORES IT IS POSSIBLE HOWEVER TO SEE SALT'S WORK ALREADY DISTINCTIVE IN HIS FIRST FILM THE SHOPWORN ANGEL WITH JAMES STEWART AND MARGARET SULLIVAN THERE IS TOUGHNESS AND INTELLIGENCE IN ALL HIS WORK EVEN IN TARAS BULBA WITH TONY CURTIS AND YUL BRYNNER AS 16THCENTURY COSSACKS AND ESPECIALLY IN SERPICO WITH AL PACINO AS THE LAST HONEST COP IN 20THCENTURY NEW YORK CITY 9402240044 940224 REVIEW & OUTLOOK EDITORIAL TRIVIAL SECRETS' THE LONGRUNNING TRIAL OF THARMAN SHANMUGARATNAM NAUGHTY ECONOMIST FOR SINGAPORE'S MONETARY AUTHORITY AND FOUR OTHER PEOPLE HAS ALL THE MELODRAMA OF A PERRY MASON CASE OR AT LEAST IT WOULD IF THE ALLEGED CRIME WEREN'T ABOUT HALF AS SERIOUS AS JAYWALKING BY POURING SO MUCH MONEY AND EFFORT INTO THIS SHOWY PROSECUTION SINGAPORE'S GOVERNMENT SEEMS TO BE JUST MILKING AN OPPORTUNITY IT'S SENDING THE USUAL MESSAGE TO THE MEDIA YOU'RE HERE TO SERVE THE GOVERNMENT NOT REPORT ON IT MR SHANMUGARATNAM IS ALLEGED TO HAVE LET A VISITOR TO HIS OFFICE CATCH A GLIMPSE OF SINGAPORE'S 1992 SECONDQUARTER GROWTH ESTIMATE THE LEAK IF IT HAPPENED WAS CLEARLY INADVERTENT YET NOW MR SHANMUGARATNAM TWO PRIVATE ECONOMISTS A REPORTER AND THE EDITOR OF THE BUSINESS TIMES HAVE ALL BEEN HAULED UP UNDER THE OFFICIAL SECRETS ACT THE CHARGES CARRY A MAXIMUM PENALTY OF TWO YEARS IN JAIL MANU BHASKARAN AN ECONOMIST FOR CROSBY SECURITIES ADMITS SEEING THE DATA BUT WASN'T SURE OF ITS SIGNIFICANCE BY THE TIME THE FIGURE REACHED A REPORTER AT THE BUSINESS TIMES ITS PROVENANCE SEEMED EVEN MORE DUBIOUS SO LIKE ANY GOOD JOURNALIST HE CALLED UP THE GOVERNMENT FOR CONFIRMATION PAUL CHEUNG THE GOVERNMENT'S CHIEF STATISTICIAN WOULDN'T CONFIRM THE FLASH ESTIMATE BUT HINTED THAT THE TIME WAS RIPE FOR A REPORT TENDING TO HOLD DOWN THE RAHRAHNESS OF THE PRIVATE SECTOR GOVERNMENTS DO HAVE A LEGITIMATE CONCERN ABOUT THE HANDLING OF INFORMATION THAT MIGHT AFFECT SHARE PRICES OF COURSE SINCE AN ADVANCE LEAK COULD GIVE SOME TRADERS AN UNFAIR ADVANTAGE THE BEST REMEDY IS PROMPT AND WIDESPREAD DISCLOSURE IN THIS EVENT THE LEAK BARELY PROVOKED A YAWN FROM THE STOCK MARKET WHAT'S MORE THE GOVERNMENT KNEW ABOUT THE LEAK FIVE DAYS BEFOREHAND AND STILL DIDN'T TRY TO PREVENT PUBLICATION WITH A WARNING NOR DOES IT NOW ACCUSE ANY OF THE DEFENDANTS OF SEEKING TO PROFIT IT'S HARD TO ESCAPE THE SUSPICION THAT THE PROSECUTION'S MOTIVE IS TO DISCOURAGE AGGRESSIVE REPORTING AND TO WARN OFFICIALS TO SHOW REPORTERS THE DOOR INSTANTLY IF THEY BEGIN ASKING INTERESTING QUESTIONS SINGAPORE'S ATTORNEY GENERAL IS PERSONALLY HANDLING THE CASE PRIME MINISTER GOH CHOK TONG HAS COMMENTED THAT HE CAN'T RUN SINGAPORE IF IT'S LEAKING ALL OVER THE PLACE SINGAPORE IS HARDLY LEAKING ALL OVER THE PLACE HOWEVER IT DOES ASPIRE TO BECOME A REGIONAL FINANCIAL CAPITAL IN OTHER IMPORTANT CAPITAL MARKETS THE INFORMATION AGE IS WELL ADVANCED TRADERS IN THOSE PLACES KNOW THAT INFORMATION CAN BE PROPERLY ASSESSED ONLY IF LOTS OF PEOPLE ARE COMPETING TO EVALUATE IT IT'S HARD TO RECONCILE SINGAPORE'S CAPITAL MARKET AMBITIONS WITH ITS CONFLICTING DESIRE TO TREAT BLAND STATISTICAL FORECASTS AS OFFICIAL SECRETS TO BE SURE SUCH HANGUPS ARE NOT TOTALLY ABSENT ELSEWHERE IN AMERICA'S STRANGE DEBATE OVER WHAT PIECES OF INFORMATION SHOULD BE ALLOWED TO INFLUENCE A COMPANY'S SHARE PRICE THE WORDS YOUR BUNNY HAS A GOOD NOSE BECAME THE BASIS OF AN INSIDERTRADING CASE CHINA WOULD LIKE TO BECOME A MODERN ECONOMY YET THE OFFICIAL PEOPLE'S DAILY RECENTLY EDITORIALIZED IN FAVOR OF NOT CONFUSING PEOPLE WITH TOO MUCH INFORMATION SO PERHAPS SINGAPORE DIFFERS MAINLY IN MOVING WITH ITS USUAL FORTHRIGHTNESS BUT IN THIS AGE OF INSTANT COMMUNICATIONS GOVERNMENTS EVERYWHERE WILL HAVE TO COME TO TERMS WITH THE TRUISM THAT MARKETS DEPEND ON INFORMATION AND MORE AND FASTER INFORMATION WILL ALLOW THEM TO WORK BETTER SEE RELATED LETTER LETTERS TO THE EDITOR SINGAPORE MUST PLUG ANY LEAKS QUICKLY WSJ MARCH 2 1994 9402240043 940224 LETTERS TO THE EDITOR CUTTING POLLUTION HELPS CREATE JOBS IT WAS DISAPPOINTING TO READ YOUR FEB 1 EDITORIAL REFERRING TO 13 BUREAUCRATS ON THE OZONE TRANSPORT COMMISSION IN FACT THE SOCALLED BUREAUCRATS ARE THE DESIGNEES OF THE GOVERNORS OF 12 EASTERN STATES AND THE MAYOR OF THE DISTRICT OF COLUMBIA THE VOTE WITH WHICH THE OZONE TRANSPORT COMMISSION ADOPTED A COMPROMISE WILL FOSTER THE CREATION OF MORE JOBS IN THESE STATES BECAUSE THE RATIO OF POLLUTION CAUSED BY MOBILE SOURCES TO INDUSTRIAL SOURCES WILL CHANGE ENABLING THE CREATION OF MORE INDUSTRIES AS WE CLEAN UP TAILPIPE POLLUTION WITH LOWEMISSION AND ZEROEMISSION VEHICLES IT IS FAR MORE LIKELY THAT THE PUBLIC WOULD BE ANGRY AT INDIVIDUALS AND INDUSTRIES THAT CONTINUE TO POLLUTE OUR AIR AND COST US JOBS THAN IT WOULD BE AT STATE GOVERNMENTS THAT WORK TOGETHER TO CLEAN UP THE ENVIRONMENT AND ENABLE US TO HAVE BETTER PAYING INDUSTRIAL JOBS IN THE OZONE TRANSPORT STATES 9402240040 940224 MARKETING & MEDIA MARKETSCAN SUPERMARKET SALES OF CIGARETTES DECLINE AS COMPETITION HEATS UP BY KATHLEEN DEVENY SUPERMARKET SALES OF CIGARETTES ARE GOING UP IN SMOKE SUPERMARKET SALES OF EVERY MAJOR TOBACCO MANUFACTURER DECLINED SHARPLY DURING THE FOURTH QUARTER SALES OF INDIVIDUAL PACKS OF ALL PHILIP MORRIS COS' BRANDS WHICH INCLUDE MARLBORO AND VIRGINIA SLIMS DROPPED 187 WHILE SALES OF NO 2 TOBACCO MAKER RJR NABISCO HOLDINGS CORP DROPPED 252 SALES OF SUCH SMALLER RIVALS AS LOEWS CORP'S LORILLARD UNIT AND BROWN & WILLIAMSON TOBACCO CORP A DIVISION OF BA T INDUSTRIES PLC DECLINED 23 AND 291 RESPECTIVELY FALLING CIGARETTE PRICES ACCOUNT FOR PART OF THE DECLINE IN MAY PHILIP MORRIS CUT PRICES OF ITS PREMIUM BRANDS BY 20 AND OTHER MAJOR TOBACCO MANUFACTURERS QUICKLY FOLLOWED BUT WHILE DOLLAR SALES ARE DECLINING MORE SHARPLY UNIT SALES IN SUPERMARKETS OF CIGARETTE CARTONS AND INDIVIDUAL PACKS DROPPED 159 AND 105 RESPECTIVELY TOTAL TOBACCO CONSUMPTION MEANWHILE IS DECLINING AT A MUCH SLOWER RATE AVERAGING 2 TO 3 A YEAR MARKETERS AND RETAILERS ATTRIBUTE DECLINING SUPERMARKET SALES LARGELY TO CHANGING SHOPPING HABITS SMOKERS NOWADAYS ARE LESS INCLINED TO STOCK UP ON CARTONS OF CIGARETTES WHICH CAN COST MORE THAN 20 EACH THEY ARE INCREASINGLY LIKELY TO PICK UP A SINGLE PACK A SEGMENT OF THE BUSINESS DOMINATED BY SUCH QUICKSERVICE OUTLETS AS CONVENIENCE STORES WHILE THOSE RETAIL OUTLETS HAVE LONG CATERED TO CONSUMERS MORE INTERESTED IN SAVING TIME THAN GETTING A BARGAIN CONVENIENCE STORES HAVE SCRAMBLED TO ATTRACT PENNYPINCHING SHOPPERS WITH BUDGET SMOKES DURING THE RECENT ECONOMIC SLUMP DESPITE MANUFACTURERS' PRICE CUTS AND DECLINING TOBACCO CONSUMPTION CIGARETTES CONTINUE TO ACCOUNT FOR AN INCREASING PERCENTAGE OF TOTAL CONVENIENCE STORES SALES ACCORDING TO THE NATIONAL ASSOCIATION OF CONVENIENCE STORES TOBACCO ACCOUNTED FOR 265 OF INDUSTRY SALES IN 1992 THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE THAT COMPARES WITH 249 OF SALES IN 1991 MANY CONVENIENCE STORES HAVE BEEN ACTIVELY COURTING SMOKERS IN RECENT YEARS WITH A BROAD SELECTION OF BUDGET BRANDS AND THEIR OWN PRIVATELABEL SMOKES AT UNIMARTS INC A CHAIN OF 437 CONVENIENCE STORES BASED IN STATE COLLEGE PA SALES OF CIGARETTES INCREASED SLIGHTLY AT THE END OF LAST YEAR ACCORDING TO BILL LLEWELLYN DIRECTOR OF MARKETING HE CITES THE POPULARITY OF THE CHAIN'S PRIVATELABEL CIGARETTES WHICH IT BEGAN SELLING 15 MONTHS AGO CALLED SEBRING THE CIGARETTES NOW ACCOUNT FOR ABOUT 25 OF UNIMARTS' TOTAL CIGARETTE SALES MANY SUPERMARKETS MEANWHILE SAY THEY MUST INCREASINGLY LOCK CIGARETTES UP OR KEEP THEM BEHIND THE COUNTER TO PREVENT PILFERAGE SMITH'S FOOD & DRUG CENTERS INC A CHAIN OF 120 STORES BASED IN SALT LAKE CITY BEGAN LOCKING UP CIGARETTES ABOUT TWO YEARS AGO SINCE THEN SALES HAVE DECLINED STEADILY NED E MEARA GROCERY MERCHANDISING MANAGER FOR GRAND UNION SUPERMARKETS IN WAYNE NJ SAYS THE DECLINE IN CIGARETTE SALES MAY HAVE ACCELERATED IN THE THIRD AND FOURTH QUARTERS BECAUSE SUPERMARKETS TYPICALLY HAVE LARGER INVENTORIES THAN CONVENIENCE STORES AND COULDN'T PASS ALONG MANUFACTURERS' 1993 PRICE CUTS AS QUICKLY AS THEIR RIVALS CONVENIENCE STORES SIMPLY REACTED MORE QUICKLY TO PASS ALONG THE PRICE CUTS HE SAYS THE LIST OF FASTESTDECLINING PRODUCTS IN DOLLAR SALES COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL IS BASED ON SCANNER DATA GATHERED FROM SUPERMARKETS EACH QUARTER CHICAGOBASED INFORMATION RESOURCES RANKS 323 CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE CHANGE IN DOLLAR VOLUME FROM THE YEAREARLIER PERIOD CONSUMERS' HEALTH CONCERNS CUT INTO QUARTERLY SALES OF CHUNKY PEANUT BUTTER DOLLAR SALES OF THE SPREADS DROPPED 143 AND UNIT SALES DECLINED SLIGHTLY MORE PARTLY BECAUSE SOME CALORIECONSCIOUS ADULTS NOW SLATHER A LITTLE LESS OF THE FATLADEN SPREAD ON EACH SANDWICH QUARTERLY SALES OF POWDERED LAUNDRY DETERGENTS DECLINED 15 PARTLY BECAUSE CONSUMERS ARE SWITCHING TO NEWER SUPERCONCENTRATED LIQUID DETERGENTS CHANGING SHOPPING HABITS ALONG WITH A LONGTERM INCREASE IN THE USE OF AUTOMATIC DISHWASHERS CUT INTO SALES OF REGULAR DISH DETERGENTS WHICH DECLINED 127 9402240039 940224 EDUCATION SCHOOLS FIND PUPIL MEDIATORS CUT VIOLENCE BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL OAKLAND CALIF AT MELROSE ELEMENTARY SCHOOL HERE STUDENTS RARELY FACE SUSPENSION FOR SCHOOLYARD FIGHTS AND 11YEAROLD ADRIANA HERNANDEZ IS ONE OF THE REASONS ADRIANA IS A VOLUNTEER CONFLICT MANAGER IN A PROGRAM AIMED AT SOLVING STUDENT SPATS AMICABLY DURING RECESS SHE AND SEVERAL PARTNERS SCAN THE SCHOOLYARD FOR SKIRMISHES THEN SWOOP IN AND CITE RULES FOR RESOLVING CONFLICTS RESTATE THE PROBLEM AGREE NOT TO INTERRUPT AGREE TO SOLVE THE PROBLEM TALK ABOUT YOUR FEELINGS MELROSE WHICH IS 60 HISPANIC AND 25 AFRICANAMERICAN SAYS THE CONFLICTMANAGER PROGRAM HAS HELPED REDUCE STUDENT VIOLENCE AND CUT SUSPENSIONS TO JUST TWO STUDENTS LAST SCHOOL YEAR FROM 100 FIVE YEARS AGO BEFORE THE PROGRAM BEGAN STUDENTS LARGELY SUPPORT THE APPROACH SAYS MOYRA CONTRERAS THE PROGRAM'S COORDINATOR BECAUSE THEY KNOW THEY DON'T NECESSARILY NEED AN ADULT TO HELP RESOLVE THEIR ISSUES A GROWING NUMBER OF SCHOOLS ARE ENLISTING STUDENT DIPLOMATS IN THEIR EFFORT TO KEEP KIDS IN SCHOOL AND OUT OF TROUBLE PUBLIC SCHOOLS IN ALBUQUERQUE NM AND WICHITA KAN HAVE RECENTLY ORGANIZED MEDIATION TEAMS OHIO HAS SET UP PROGRAMS IN MORE THAN 300 OF ITS 4600 SCHOOLS MARYLAND'S PRINCE GEORGE'S PUBLICSCHOOL DISTRICT WHICH STARTED WITH THREE PROGRAMS THREE YEARS AGO HOPES TO IMPLEMENT PEER MEDIATION OR SIMILAR PROGRAMS IN ALL 22 DISTRICT HIGH SCHOOLS BEGINNING NEXT YEAR AND NEW YORK CITY TUCSON ARIZ AND OTHER EARLY ADOPTERS OF STUDENT MEDIATION HAVE EXPANDED THEIR PROGRAMS ALL TOLD THERE ARE ROUGHLY 5000 PEERMEDIATION PROGRAMS IN US PUBLIC AND PRIVATE SCHOOLS UP FROM ABOUT 2000 IN 1991 ACCORDING TO THE NATIONAL ASSOCIATION FOR MEDIATION IN EDUCATION AN AMHERST MASS NONPROFIT GROUP JUST LAST WEEK AT THE CALIFORNIA EDUCATION SUMMIT IN SAN FRANCISCO CALIFORNIA ATTORNEY GENERAL DANIEL LUNGREN PRAISED PEER MEDIATION AS ONE OF THE MOST EFFECTIVE MEANS TO DETER PUBLICSCHOOL VIOLENCE TOUGH KIDS APPRECIATE THE EFFORT TOO ONE OF THE THINGS GANG MEMBERS TELL US SAYS JANE RICHARDS A PROGRAM COORDINATOR FOR THE WICHITA PUBLIC SCHOOLS IS THEY WOULD LIKE THEIR SCHOOLS TO BE SAFE BECAUSE THEY'RE TIRED OF HAVING TO WATCH THEIR BACKS 18 HOURS A DAY MELROSE ELEMENTARY'S PROGRAM IS TYPICAL AT THE BEGINNING OF EACH SCHOOL YEAR TEACHERS ENLIST ABOUT 15 FIFTHGRADE AND SIXTHGRADE VOLUNTEERS TO UNDERGO A WEEK OF TRAINING WITH THE SCHOOL'S PSYCHOLOGIST AND OTHER STAFF MEMBERS TRAINEES MEMORIZE A SCRIPT WITH RULES OF CONDUCT THAT THEY CAN RECITE TO WOULDBE COMBATANTS AT HOLY NAMES HIGH SCHOOL A CATHOLIC GIRLS SCHOOL WITH 300 STUDENTS IN OAKLAND VOLUNTEERS ARE TAUGHT TO LOOK FOR GIRLS GLARING AT EACH OTHER OR HOMING IN ON EACH OTHER AS IF FOR A FIGHT THE STUDENT VOLUNTEERS MOVE IN TO URGE THE WOULDBE COMBATANTS TO DISCUSS THEIR DIFFERENCES IF A FIGHT STILL ERUPTS THEY ALERT TEACHERS WHO PULL THE GIRLS OFF THE SCHOOLYARD SCHOOLS SAY STUDENT MEDIATORS ARE A PRODUCT OF CHANGING TIMES DEALING WITH MISCREANTS BY SUSPENDING THEM THE PUNISHMENT OF CHOICE FOR DECADES INCREASINGLY DOESN'T CHANGE BEHAVIOR THEY SAY FOR ONE THING SAYS MELROSE'S MS CONTRERAS MANY STUDENTS SEE A SUSPENSION AS VACATION SUSPENSIONS DON'T GENERATE THE KIND OF CONCERN THEY USED TO AMONG PARENTS EITHER ADDS KAREN RILEY DEAN OF HOLY NAMES HIGH SCHOOL BECAUSE PARENTS ARE NOT HOME TO WATCH THE SUSPENDED KIDS ANYMORE JOHN STEPHENS RESEARCH DIRECTOR OF THE STATE OF OHIO'S COMMISSION ON DISPUTE RESOLUTION AND CONFLICT MANAGEMENT SAYS THAT A SURVEY OF 20 OHIO SCHOOLS FOUND THAT SUSPENSIONS DECLINED TO 450 IN THE SCHOOL YEAR ENDED IN MAY 1993 FROM 600 THREE YEARS EARLIER BEFORE STUDENT MEDIATORS WERE INSTALLED AN ETHNICALLY DIVERSE MIDDLE SCHOOL IN DAYTON SAW A DROP IN THE NUMBER OF SUSPENSIONS TO 63 LAST SCHOOL YEAR FROM 166 THREE YEARS BEFORE HE SAYS AS A RESULT OF ITS PROGRAM SAN FRANCISCO'S HOLY NAMES SCHOOL HAS ALREADY SEEN AN IMPROVEMENT IN BEHAVIOR AND KIDS ARE ACTING OUT LESS IN CLASS SAYS MS RILEY THEY NOW HAVE A PLACE TO GO TALK BEFORE FIGHTING SOME CRITICS ARGUE THAT STUDENTS NEED MORE DISCIPLINE RATHER THAN EMPOWERMENT M MELISSA MCCORMICK A RESEARCH ASSISTANT AT THE UNIVERSITY OF ARIZONA WHO PARTICIPATED IN A TUCSON MEDIATION PROJECT SAYS THE PROGRAM RAN INTO ROADBLOCKS BECAUSE SOME TEACHERS AND EDUCATORS SAW US BEING WIDEEYED LIBERALS GIVING OUR ATRISK' STUDENTS TOO MUCH POWER AND FOCUSING LESS ON MORE DISCIPLINE THE PROGRAM WAS CANCELED BECAUSE OF A LACK OF FUNDS AND A LACK OF SUPPORT FROM TEACHERS ALTHOUGH SOME OTHER TUCSON SCHOOLS HAVE EXPANDED THEIR PROGRAMS INDEED SCHOOLS THAT USE STUDENT DIPLOMATS CAUTION AGAINST GIVING TOO MUCH CREDIT TO MEDIATORS FOR A REDUCTION IN VIOLENCE CONFLICT MANAGERS MUST BE PART OF A BROADER PROGRAM TO CREATE SAFER SCHOOLS SAYS MELROSE'S SCHOOL PSYCHOLOGIST CAROLYN URBANKSI WHILE THE PROGRAM IS A GOOD TOOL TO USE IT CAN'T BE THE ONLY ONE SHE SAYS AND MELROSE LIKE MOST OTHER SCHOOLS EXPERIMENTING WITH STUDENT MEDIATORS STILL METES OUT PUNISHMENT FOR INFRACTIONS SUCH AS 10DAY SUSPENSIONS FOR CARRYING WEAPONS TO SCHOOL STILL SAYS GLORIA BOLDS ASSOCIATE SUPERINTENDENT FOR PUPIL SERVICES AT PRINCE GEORGE'S PUBLIC SCHOOLS WHAT WE'VE LEARNED IS THAT KIDS CAN AND DO INDEED MEDIATE THEIR DISPUTES IF WE GIVE THEM THE SKILLS TO DO IT 9402240038 940224 LEISURE & ARTS AN OASIS OF ISLAND CULTURE UNDER SIEGE IN THE BRONX BY MITCHELL PACELLE NEW YORK FOR NEARLY 17 YEARS JOSE SOTO HAS BEEN STOPPING AFTER WORK AT A SHACK HE BUILT IN THE SOUTH BRONX IT'S NO DIFFERENT FROM THOUSANDS OF HOMES THAT DOT THE COUNTRYSIDE OF HIS NATIVE PUERTO RICO ONEROOM WITH A HALFDOZEN SHUTTERED WINDOWS A FRONT DOOR ADORNED WITH A PICTURE OF JESUS CHRIST AND NO HEAT OR RUNNING WATER ON A BLUSTERY SATURDAY EVENING IN EARLY WINTER THE 48YEAROLD APARTMENT SUPER ARRIVES AT DUSK CARRYING A QUINTO DRUM A HIGHPITCHED PUERTO RICAN CONGA INSIDE BUNDLED IN WARM COATS A HALFDOZEN MEN AND WOMEN ARE WATCHING A BOXING MATCH ON A BATTERED TELEVISION SET THE DOOR AS USUAL IS OPEN TO ANYONE WITH A FONDNESS FOR TRADITIONAL PUERTO RICAN FOOD DRINK AND ABOVE ALL MUSIC RINCON CRIOLLO AS THIS CLUBHOUSE IS CALLED IS THE OLDEST OF PERHAPS 50 CASITAS OR LITTLE HOUSES ERECTED FROM SCRAP WOOD ON VACANT CITYOWNED LOTS IN EAST HARLEM AND THE SOUTH BRONX NEW YORK CITY OFFICIALS HAVE LONG IGNORED BUILDINGCODE VIOLATIONS FOR THE HUTS SERVE AS SOCIAL CENTERS FOR MANY OF THE CITY'S 900000 PUERTO RICANS WHO LIVE IN OTHERWISE DESOLATE NEIGHBORHOODS AFTER GREETING HIS FRIENDS MR SOTO WALKS OUT INTO AN ORDERLY PACKEDDIRT YARD AND SCREWS A LIGHT BULB INTO AN OVERHEAD ELECTRICAL CORD WHICH DRAWS POWER FROM THE METHADONE CLINIC NEXT DOOR HE LIGHTS A SMALL FIRE INSIDE A METAL BOX PICKS UP A RUSTY AX AND BEGINS SPLINTERING SCAVENGED WINDOW FRAMES INTO FUEL SEVERAL OTHERS BEGIN CHOPPING TROPICAL VEGETABLES FOR A STEW CALLED MONDONGO WHICH SIMMERS WITH PIGS' FEET OVER THE FIRE LUIS RAMOS STILL WEARING THE SUIT AND TIE FROM HIS DAY JOB WITH THE CENSUS BUREAU HANDS OUT SEVERAL PANDERETAS HANDHELD GOATSKIN DRUMS RESEMBLING TAMBOURINES THE SOUNDS OF PLENA A TRADITIONAL PUERTO RICAN FOLK MUSIC BEGIN RINGING INTO THE NIGHT AFTER A SHORT WHITEHAIRED SINGER BELTS OUT SEVERAL SONGS MR RAMOS SCURRIES OFF TO HIS CAR TO RETRIEVE A BOTTLE OF GIN AND A STACK OF CUPS TONIGHT'S ATMOSPHERE ASIDE THE PAST YEAR HAS NOT BEEN A FESTIVE ONE FOR RINCON CRIOLLO CITY PLANNERS HAVE LAUNCHED A VAST URBANRENEWAL PROJECT HERE IN MELROSE A NEIGHBORHOOD THAT WAS HARD HIT BY ABANDONMENT AND ARSON IN THE 1970S THEY HAVE PICKED THE CASITA'S LOT TO BUILD THREE MULTIFAMILY HOMES THIS YEAR BULLDOZERS ARE EXPECTED TO FLATTEN IT THE CASITA MEMBERS WERE ALLOWED TO DO WHAT THEY HAVE DONE BECAUSE THIS IS A WILDERNESS SAYS PETR STAND A MANHATTAN ARCHITECT WORKING WITH A COMMUNITY GROUP TO SAVE THE CASITA BUT WITH THE COMING URBAN RENEWAL BUILDING INSPECTORS WILL BE WALKING AROUND AND THEY'RE LIKELY TO VIEW SUCH STRUCTURES NOT AS VALUABLE CULTURAL CENTERS OR IRREPLACEABLE EXAMPLES OF AGEOLD CARIBBEAN ARCHITECTURE BUT AS FIRETRAPS THE CITY HAS NEVER UNDERSTOOD THEM AS CULTURAL CENTERS COMPLAINS LUIS APONTEPARES WHO TEACHES ARCHITECTURE AT CITY COLLEGE IT'S ALWAYS TREATED THEM AS POTENTIAL SQUATTERS' CAMPS I THINK THAT IN MOST CASES CASITAS ATTRACT THE BEST OF THE COMMUNITY THEY MAY BE POOR BUT THEY'RE GOOD CITIZENS WHAT'S MORE TO THOSE WHO STUDY TRADITIONAL PUERTO RICAN CULTURE RINCON CRIOLLO IS MUCH MORE THAN A PLACE FOR OLDTIMERS TO PASS TIME PLAYING DOMINOES AND CARDS IT'S THE CITY'S PREMIER CULTURAL CASITA A MAGNET FOR PUERTO RICAN FOLK MUSICIANS DANCERS AND ARTISTS AND A REGULAR STOP FOR LATINO MUSICIANS FROM ACROSS AMERICA AS WELL AS PUERTO RICO THE GLUE THAT HOLDS THE GROUP TOGETHER IS PLENA A MUSIC AKIN TO AMERICAN BLUES AND ROOTED IN THE WORK SONGS OF CANE CUTTERS WHICH BLOSSOMED AROUND THE TURN OF THE CENTURY WHEN CARIBBEAN BLACKS MIGRATED FROM THE FIELDS TO THE CITIES THE LEAD SINGER SPINS A STORY OFTEN IMPROVISED WHILE A CHORUS RINGS OUT RESPONSES AND LAYS DOWN THE RHYTHM WITH PANDERETAS MARACAS AND GOURDANDCOMB INSTRUMENTS CALLED GUIROS LIKE THE BLUES IT IS MUSIC THAT LENDS ITSELF TO MERRYMAKING TO SEE IT BEING KNOCKED DOWN I MIGHT HAVE A HEART ATTACK MOANS MR SOTO I'VE NEVER HAD ANY PROBLEMS WITH CITY OFFICIALS WHEN I CAME TO THE BRONX THIS WAS A DUMP NOW THE REST OF THE LOTS ARE DUMPS AND THIS ISN'T WHILE CASITA VETERANS SUCH AS MR SOTO CONSIDERED IT HOPELESS TO FIGHT CITY HALL CHIQUE PEREZ A 26YEAROLD INSURANCE BROKER DIDN'T HOMEOWNERS AND MERCHANTS HAD FORMED A COMMUNITY GROUP TO STOP THE CITY FROM MOWING DOWN DOZENS OF PRIVATE HOMES AND BUSINESSES TO FULFILL ITS URBANRENEWAL PLANS AND MR PEREZ SET OUT TO CONVINCE THEM THE RAMSHACKLE BUILDING WAS A CULTURAL CENTER WORTH SAVING TO DEMONSTRATE THAT TO VISITORS CASITA MEMBERS INVARIABLY USHER THEM TO A WALL OF THE SHACK COVERED WITH A DECADE'S WORTH OF SNAPSHOTS EVERYWHERE THERE ARE THE MUSICIANS PLAYING AT CROWDED SUMMERTIME PIG ROASTS AND ON STAGES IN CITY PARKS AND DANCERS IN TRADITIONAL GARB AND HANDMADE MASKS THERE ARE VISITING SINGERS AND ACTORS FROM PUERTO RICO WHERE RINCON CRIOLLO IS KNOWN AS A WELLSPRING OF TRADITIONAL MUSIC AND THE PLACE TO BUY THE PANDERETAS MR SOTO FASHIONS BY HAND FROM COOKING POTS BROKEN BABY CARRIAGES AND GOATSKIN THERE ARE MEMBERS DRESSED UP AS THE THREE KINGS DISTRIBUTING CHRISTMAS GIFTS TO NEEDY CHILDREN AND OTHERS PARADING THROUGH THE STREETS IN A MULE COSTUME A YEAREND HOLIDAY TRADITION THE COMMUNITY GROUP AGREED TO LOBBY THE CITY TO SAVE THE CASITA AND AFTER INITIAL RESISTANCE THE CITY RELENTED JEFF BAKER THE DEPUTY CHIEF URBAN DESIGNER FOR THE DEPARTMENT OF CITY PLANNING AGREED TO PROVIDE ANOTHER LOT IN EXCHANGE FOR THE CURRENT ONE IT'S OBVIOUSLY A GOOD THING TO HAVE IN THE COMMUNITY HE CONCEDES THAT LEAVES THE CASITA MEMBERS FACING A MORE INTRACTABLE FOE BUILDING CODES REGULATING PLACES OF PUBLIC ASSEMBLY THE QUESTION CAME DOWN TO HOW CAN WE EFFECTIVELY RECREATE A CASITA SO THAT IT LOOKS LIKE A CASITA FEELS LIKE A CASITA BUT COMPLIES WITH THE CITY BUILDING CODE I DIDN'T HAVE AN ANSWER EXPLAINS THE COMMUNITY GROUP'S ARCHITECT MR STAND MR PEREZ HOWEVER DID HE WANTS TO BUILD A TWOSTORY MUSEUM AND CULTURAL CENTER IN THE FRONT OF THE LOT THEN ERECT A SIMPLE WOODEN CASITA IN THE BACK AS A SORT OF EXHIBIT VISITORS HE EXPLAINS COULD GO INTO THE CASITA AND SEE THE WAY WE LIVE MR STAND ESTIMATES THE COST OF A FULLFLEDGED CULTURAL CENTER AT A DAUNTING 250000 WHILE EVEN A SMALL LOWLY ONEROOM MEETING HALL WOULD COST UPWARD OF 100000 AS ADEPT AS CASITA MEMBERS HAVE BECOME AT BUILDING FROM SCAVENGED MATERIALS SUCH A PROJECT IS CLEARLY BEYOND THEIR MEANS ONE RECENT EVENING JAMMING MUSICIANS RAISED MONEY FOR DRINK BY PITCHING DOLLAR BILLS INTO A PILE ON THE FLOOR IT'S DEMORALIZED A LOT OF US ADMITS MR RAMOS WE HAVE TO ORGANIZE LIKE 250000 THAT'S IMPOSSIBLE FOR US A LOT OF GUYS HAVE LOST THEIR MOTIVATION WE'RE HOPING PRAYING SOMETHING WILL HAPPEN THE ETERNALLY OPTIMISTIC MR PEREZ IS CONVINCED THAT VARIOUS GRANTS WILL BE AVAILABLE FROM COMMUNITY CITY AND CULTURAL GROUPS BUT ADMITS THAT PULLING IT OFF WILL REQUIRE MOREFORMAL MANAGEMENT OF THE ORGANIZATION MR SOTO IS RESIGNED TO THE FACT THAT HE MAY HAVE NO OTHER CHOICE BUT TO ACCEPT A STERILE VERSION OF THE REAL THING BUT I DON'T FEEL IT'S SOMETHING I CAN CALL HOME HE HASTENS TO ADD IT'S NOT A TYPICAL CASITA I WOULD PREFER IT JUST LIKE THIS ASKED ONE RAUCOUS EVENING IF HE WOULD WELCOME MUSEUM VISITORS AT SUCH A GATHERING MR SOTO RESPONDS WITHOUT HESITATION THEY'LL SERVE THEMSELVES WHAT THEY WANT JUST LIKE IT'S THEIR HOME WE WON'T CHARGE ANYTHING WE'LL JUST TAKE UP A COLLECTION LIKE WE DO NOW MR PACELLE IS A JOURNAL REPORTER COVERING THE REALESTATE INDUSTRY