SANTA CLARITA CALIF LIKE MANY SERVICE COMPANIES PACIFIC BELL IS
LOOKING AROUND FOR BIG STEPS TOWARD INCREASED PRODUCTIVITY AND IT
APPARENTLY HAS FOUND ONE A 10 CIRCUIT BOX THAT EVENTUALLY MAY SAVE PACBELL
2 MILLION A DAY

HERE'S HOW STATEWIDE THE REGIONAL TELEPHONE UNIT OF PACIFIC TELESIS GROUP
DISPATCHES ABOUT 20000 TRUCKS A DAY TO FIX CUSTOMERS' LINES WHEN IT FINDS
THAT THE LINE IS BROKEN INSIDE A CUSTOMER'S HOME OR OFFICE IT'S UP TO THE
CUSTOMER TO FIX IT CUSTOMERS USUALLY SHOO THE WORKER AWAY AND DO THE REPAIR
THEMSELVES

BUT PACBELL ESTIMATES THE COST OF SENDING OUT A TRUCK AT 140 AND WANTS
TO PINPOINT TROUBLE WITHOUT DISPATCHING ONE

IN AN EXPERIMENT IN THIS SUBURB NORTH OF LOS ANGELES PACBELL FOUND THAT THE
SOLUTION WAS A CIRCUIT BOX LINKING TWO EXISTING TECHNOLOGIES PACBELL
COMPUTERS CONTINUOUSLY SEND SIGNALS TO THE DEVICE WHICH BOUNCES THEM BACK
IF THE OUTSIDE LINE IS INTACT WHENEVER A LINE PASSES THAT TEST THE COMPANY
KNOWS RIGHT AWAY THAT THE PROBLEM IS ON THE CUSTOMER'S END USING THAT
GADGET PACBELL HAS SLASHED ITS TRUCK DISPATCHES IN SANTA CLARITA BY 30
MULTIPLIED ACROSS THE COMPANY THE DAILY SAVINGS COULD EXCEED 2 MILLION

SUCH PRODUCTIVITYENHANCING TECHNOLOGICAL GAINS ARE ACCELERATING IN MANY
SERVICE COMPANIES MUCH OF THE HUGE US SERVICE SECTOR SEEMS ON THE VERGE
OF AN UPHEAVAL SIMILAR TO THAT WHICH HIT FARMING AND MANUFACTURING WHERE
EMPLOYMENT PLUNGED FOR YEARS WHILE PRODUCTION INCREASED STEADILY BUT WHILE
THE COMPETITIVENESS OF US COMPANIES WILL IMPROVE AND THE COST OF SERVICES
TO AMERICANS AS CONSUMERS WILL DROP TOUGH TIMES MAY LIE AHEAD FOR AMERICANS
AS EMPLOYEES PACBELL FOR INSTANCE WON'T NEED ANYBODY TO DRIVE THE TRUCKS
THAT AREN'T SENT OUT TECHNOLOGICAL ADVANCES ARE NOW SO RAPID THAT COMPANIES
CAN SHED FAR MORE WORKERS THAN THEY NEED TO HIRE TO IMPLEMENT THE TECHNOLOGY
OR SUPPORT EXPANDING SALES

YOU CAN VERY GENUINELY PAINT A PRETTY APOCALYPTIC PICTURE OF THE STATE OF
EMPLOYMENT DRIVEN BY TECHNOLOGICAL CHANGES SAYS FRANCIS GOUILLART VICE
PRESIDENT OF GEMINI CONSULTING INC A MANAGEMENTCONSULTING FIRM IN
MORRISTOWN NJ

IN FACT THREE YEARS INTO THE RECOVERY FROM THE 199091 RECESSION
SERVICESECTOR LAYOFFS ARE BEING ANNOUNCED WITH UNSETTLING FREQUENCY
AMERICAN TELEPHONE & TELEGRAPH CO RECENTLY SAID IT PLANS TO REDUCE ITS
PAYROLL BY 15000 MANAGERS AND WORKERS IN ITS LONGDISTANCE DIVISION MAINLY
BY DEPLOYING NEW TECHNOLOGY THE ANNOUNCEMENT CAME HARD ON THE HEELS OF
OTHER DECISIONS TO SLASH JOBS 17000 AT GTE CORP 16800 AT NYNEX CORP
AND 10000 AT PACIFIC TELESIS AETNA LIFE & CASUALTY CO HAS DISCLOSED A
SECOND ROUND OF LAYOFFS AFFECTING 4000 WORKERS CITICORP TOOK A 604
MILLION CHARGE FOR UNSPECIFIED CUTBACKS BY THE TIME THESE COMPANIES ARE
THROUGH THEY WILL HAVE SLASHED EMPLOYMENT BY 20 TO 40 FROM THEIR PEAKS A
FEW YEARS AGO

ACCORDING TO CHALLENGER GRAY & CHRISTMAS A CHICAGOBASED OUTPLACEMENT
CONSULTING FIRM LARGE EMPLOYERS LAID OFF A TOTAL OF 108000 WORKERS IN
JANUARY A ONEMONTH RECORD SINCE THE FIRM BEGAN TRACKING SUCH FIGURES IN
1989 NEARLY HALF THE CUTBACKS CAME IN FOUR SERVICE INDUSTRIES
COMMUNICATIONS INSURANCE BANKING AND FINANCE SMALL BUSINESSES AND OTHER
COMPANIES ARE PICKING UP MANY OF THE BODIES BUT THERE'S NO SIGN THAT
MAJOR LAYOFFS AT BIG SERVICE COMPANIES ARE ABATING SAYS EXECUTIVE VICE
PRESIDENT JOHN CHALLENGER

DOOMSAYERS HAVE BEEN PREDICTING TECHNOLOGYDRIVEN LAYOFFS FOR DECADES A
CHORUS THAT GREW AS US COMPANIES INVESTED MORE THAN 1 TRILLION IN
INFORMATION TECHNOLOGY DURING THE 1980S WHILE AUTOMATION AND COMPUTERIZED
TOOLS DID SHRINK MANUFACTURING PAYROLLS MEASURED PRODUCTIVITY IN THE
SERVICE SECTOR STAGNATED IN THE 1980S AND BEGAN PICKING UP ONLY IN 1992

THAT ISN'T AS SURPRISING AS IT MAY SEEM AT FIRST NEW TECHNOLOGIES NORMALLY
ARE ADOPTED ONLY SLOWLY FOR YEARS COMPUTERS WEREN'T USED EFFECTIVELY IN
BUSINESS OFFICES THEN EMPLOYEES LEARNED TO RUN THE SYSTEMS BUT MERELY
ADAPTED THEM TO OLD WORK METHODS SUCH AS REPLACING A TYPEWRITER WITH A
COMPUTER ESSENTIALLY PAVING THE COW PATHS

BUT NOW MORE AND MORE COMPANIES ARE LEARNING TO USE COMPUTER NETWORKS TO
CUT OUT WORK ALTOGETHER INSTEAD OF SIMPLY DOING IT FASTER THE BASIC IDEA
OF THE MUCHDISCUSSED CORPORATE REENGINEERING FOR EXAMPLE AN INNOVATION
AS SIMPLE AS A CALLSWITCHING SYSTEM AMONG OTHER EFFICIENCIES ENABLED
PROGRESSIVE CORP A MAYFIELD HEIGHTS OHIO INSURANCE COMPANY TO ELIMINATE
1000 WORKERS 17 OF ITS WORK FORCE LAST YEAR OUT WENT ENTIRE GROUPS OF
WORKERS WHO WROTE DESIGNED FOLDED STUFFED AND MAILED LISTS OF PHONE
NUMBERS OF VARIOUS CLAIMS OFFICES FOR CUSTOMERS TO CALL IN CASE OF AN
ACCIDENT NOW CUSTOMERS CALL A SINGLE TOLLFREE NUMBER AND ARE
AUTOMATICALLY ROUTED BY MCI COMMUNICATIONS CORP COMPUTERS TO THE NEAREST
OPEN CLAIMS OFFICE

SIMILARLY COMPANIES SUCH AS APPLE COMPUTER CO HAVE ELIMINATED MOST OF
THEIR RECEPTIONISTS WITH VOICE MAIL AND PAGERS AT&T HAS USED COMPUTERBASED
AUTOMATION TO CUT ITS LONGDISTANCE OPERATORS TO 15000 FROM 44000 IN THE
PAST DECADE AUTOMATED TELLER MACHINES AND BANKBYPHONE COMPUTERS HAVE
ENABLED BANKS TO SLASH THE RANKS OF TELLERS TO 301000 LAST YEAR FROM
480000 IN 1983

THE TREND SEEMS BOUND TO ACCELERATE GIVEN RECENT ADVANCES IN WIRED AND
WIRELESS NETWORKS SOON FEWER UTILITY WORKERS WILL BE NEEDED TO CHECK
METERS AND FEWER SERVICE PEOPLE TO CHECK VENDING MACHINES WIRELESS SENSORS
WILL REPORT THE INFORMATION TO A COMPUTER NETWORK AT&T AND OTHER COMPANIES
ARE BUILDING NETWORKS THAT WILL SERVE AS ELECTRONIC MARKETPLACES IN WHICH
BUYERS AND SELLERS MEET DIRECTLY VIA COMPUTER SUPPLANTING SOME BROKERS
SALESPEOPLE RETAILERS AND DISTRIBUTORS

HOW SUCH REENGINEERING CAN BE INTRODUCED IN THE SERVICE SECTOR IS
ILLUSTRATED BY PACBELL'S NOVEL EXPERIMENT HERE IN SANTA CLARITA THE
PROJECT NOW CALLED INFOTEL WAS BORN IN SEPTEMBER 1991 WHEN SAN
FRANCISCOBASED PACBELL SENT A DOZEN MANAGERS TO THE DOUBLE TREE INN IN
SANTA ANA CALIF THEIR FAMILIAR MISSION THINK UP WAYS TO INCREASE
PRODUCTIVITY

THEIR LEADER JOHN LEWIS THEN GENERAL MANAGER OF PACBELL'S LOS ANGELES
STAFF WONDERED WHY THE COMPANY WAS USING TRADITIONAL METHODS IF IT REALLY
WANTED A QUANTUM LEAP PUZZLING OVER THE PROBLEM IN THE SHOWER THAT FIRST
MORNING HE HAD AN IDEA HE WOULD FIRE HIS COLLEAGUES AND HIMSELF AND
UNBEKNOWNST TO HIS BOSSES CHANGE THE AGENDA HE ASKED THEM TO PRETEND THAT
THEY HAD JUST INHERITED A PHONE COMPANY FROM UNCLE HERMAN AND FOUND THAT
THE OLD MAN HADN'T LEFT ENOUGH MONEY TO BUY A NEW COMPUTER SYSTEM
OTHERWISE THEY COULD INVENT A WHOLE NEW PHONE COMPANY

FOR THE FIRST FEW DAYS THE PARTICIPANTS GOT NOWHERE THEY WERE SIMPLY TOO
TANGLED IN THE PACBELL CULTURE SPEAKING IN CORPORATE ACRONYMS AND THINKING
OLD THOUGHTS SO MR LEWIS IMPOSED 25CENT FINES FOR EACH PEEP OF PACBELL
LINGO WE HAD LOTS OF COCKTAILS WITH THE PROCEEDS HE SAYS

THEN CHANGES CAME MORE EASILY DURING I WISH SESSIONS THE MANAGERS
OFFERED IDEAS BEGINNING WITH THOSE WORDS AS IN I WISH THE FIRST PERSON
WHO ANSWERED THE PHONE COULD SOLVE MY PROBLEM THAT DRILL DEVELOPED IDEAS
FOR AMONG OTHER THINGS CHANGING OFFICE PROCEDURES SO INDIVIDUAL WORKERS
COULD PERFORM MANY TASKS QUICKLY SUCH AN OFFICE COULD BE SET UP THE
MANAGERS THOUGHT IF THEY COULD INVENT SOFTWARE GIVING WORKERS INSTANT
ACCESS TO NUMEROUS DATABASES

AFTER SOME FOUR WEEKS OF BRAINSTORMING MR LEWIS TOLD HIS BOSS MARTY A
KAPLAN PACBELL'S EXECUTIVE VICE PRESIDENT FOR REENGINEERING THAT THE
GROUP WANTED TO CREATE AND RUN A REAL INFOTEL WITHIN THE PHONE COMPANY MR
KAPLAN AGREED AND INFOTEL SPENT THE NEXT YEAR DEVELOPING A BUSINESS PLAN 
DESPITE THE DOUBTS OF OTHER SENIOR MANAGERS THE GROUP CHOSE SANTA CLARITA
AS THE TEST SITE BECAUSE IT IS SMALL ITS POPULATION IS 30000 BUT HAS
A MIX OF BUSINESS AND RESIDENTIAL ACCOUNTS FOR STAFFING INFOTEL ASKED THE
COMMUNICATIONS WORKERS OF AMERICA FOR FOUR UNION VOLUNTEERS WHO WOULD BRING
ALONG THEIR OLD WORK BUT HANDLE IT WITH INFOTEL'S NEW PROCEDURES PLUS THEIR
OWN INNOVATIONS

MOST OF INFOTEL'S COST SAVINGS COME FROM SMALL CHANGES BECAUSE OF ONE
SOFTWARE GLITCH FOR INSTANCE PACBELL COMPUTERS COULDN'T AUTOMATICALLY
PROCESS REQUESTS FOR VOICE MAIL FROM CUSTOMERS SERVED BY A CERTAIN KIND OF
PHONE SWITCH EVERY DAY THE COMPUTERS ACROSS THE STATE KICKED OUT HUNDREDS
OF ORDERS AND EMPLOYEES HAD TO SPEND ABOUT 10 MINUTES PROCESSING EACH ONE

SANDY COASH AN INFOTEL WORKER IDENTIFIED THE PROBLEM AND TOLD MR LEWIS
TO WHOM SHE WOULDN'T NORMALLY HAVE HAD ACCESS WITHIN THREE MONTHS PACBELL
SOFTWARE ENGINEERS FIXED THE PROBLEM FOR THE WHOLE STATE AND ELIMINATED
ALL THAT WORK THAT AND OTHER SOFTWARE FIXES ALLOWED INFOTEL'S FOUR UNION
WORKERS TO CUT OUT 85 OF THE WORK THEY HAD BROUGHT WITH THEM FROM THEIR OLD
JOBS MR LEWIS SAYS

THERE WERE MANY OTHER CHANGES A NEW SOFTWARE PROGRAM FOR REPAIR WORKERS'
PORTABLE COMPUTERS GIVES THEM ALL THE INFORMATION THEY NEED TO FIX A LINE
NO LONGER DO THEY HAVE TO CALL OTHER PACBELL EMPLOYEES FOR HELP THE
COMPUTERS ALSO DISPATCH THEM TO THEIR NEXT ASSIGNMENT NOW THEY DON'T HAVE
TO CALL IN FOR THOSE EITHER CELLULAR TELEPHONES IN THEIR VANS ALLOW THEM
TO MAKE PHONE CALLS ON THE ROAD INSTEAD OF PULLING OVER AT GAS STATIONS

AND THAT IS JUST THE BEGINNING INFOTEL HAS YET TO IMPLEMENT ITS CROWNING
ACHIEVEMENT A SOFTWARE PROGRAM THAT SHOULD MAKE CUSTOMERSERVICE COMPUTERS
AS EASY TO USE AS A CASH REGISTER AT MCDONALD'S ONCE IT'S IN PLACE WORKERS
WILL BE ABLE TO POINT AND CLICK AT A MENU OF ORDERS WHEN A CUSTOMER CALLS
FILLING THE ORDER IN MINUTES THE SAME WORKERS WILL HAVE REMOTE ACCESS TO
SWITCHES AND ALSO WILL BE ABLE TO PERFORM SIMPLE TESTS ON LINES

CURRENTLY WHEN A CUSTOMER CALLS REGULAR PACBELL OFFICES TO START PHONE
SERVICE THE WORKER WHO ANSWERS MUST TYPE IN THE NAME ADDRESS BILLING
INFORMATION AND HOW THE PERSON WANTS TO BE LISTED IN THE DIRECTORY THEN THE
WORKER FUMBLES THROUGH HEAVY MANUALS TO LOOK UP CORRESPONDING COMPUTER CODES
FOR THE WHOLE ORDER AND TYPE IN THE CODES SOMETIMES MAKING MISTAKES THE
PROCESS TAKES AN AVERAGE OF 22 MINUTES A CUSTOMER WHO ALSO WANTS TO REPORT
TROUBLE ON A LINE MUST TRANSFER TO A DIFFERENT DEPARTMENT AND TALK TO AT
LEAST TWO MORE PEOPLE

PACBELL'S CUSTOMERS IN SANTA CLARITA ARE ALREADY GETTING BETTER SERVICE
THEY CAN NOW GET NEW FEATURES SUCH AS CALLWAITING IN SECONDS INSTEAD OF
HOURS AND REPAIR WORKERS HAVE DEVELOPED A SIXTH SENSE WHEN CINDY PASCOE'S
DAUGHTER SHORTED OUT A PHONE LINE BY KNOCKING OVER A FISH TANK A REPAIRMAN
ARRIVED EVEN BEFORE SHE KNEW THE LINE WAS DEAD IT WAS WONDERFUL THE
DEPARTMENTSTORE SALESWOMAN EXCLAIMS

SINCE THE INFOTEL GROUP DIDN'T HAVE ENOUGH MONEY TO BUY A NEW EASYTOUSE
COMPUTER SYSTEM THEY JURYRIGGED THE ONE THEY HAD BY WRITING A NEW SOFTWARE
PROGRAM SO FAR THE SOFTWARE HAS TAKEN MORE THAN A YEAR AND MORE THAN 10
MILLION TO DEVELOP BUT THAT IS SMALL CHANGE COMPARED WITH THE 4 BILLION
MR LEWIS ESTIMATES AS THE COST OF REPLACING ALL OF PACBELL'S CURRENT
COMPUTERS

THE BOTTOM LINE COMPANYWIDE ADOPTION OF INFOTEL INNOVATIONS COMBINED WITH
OTHER REENGINEERING EFFORTS WILL ALLOW PACBELL TO SERVE ITS EXISTING
CUSTOMERS WITH 10000 FEWER WORKERS MR LEWIS IS A BIT SENSITIVE ABOUT
LINKING INFOTEL'S SUCCESS TO THE JOB CUTS WHICH ARE TO BE COMPLETED BY
1997 INFOTEL IS NOT LAYING THEM OFF COMPETITION IS LAYING THEM OFF HE
ARGUES MR KAPLAN AGREES WE DIDN'T SAY WE'RE GOING TO REENGINEER THE
BUSINESS TO CUT 10000 PEOPLE WE SAID WE'VE GOT TO TAKE A LOT OF COSTS OUT
  AND IMPROVE SERVICE

A CRUCIAL QUESTION IS HOW MANY WELLPAYING JOBS DESTROYED BY TECHNOLOGY WILL
BE OFFSET BY WELLPAYING JOBS CREATED BY TECHNOLOGY AND MANY ARE BEING
CREATED UNITED PARCEL SERVICE OF AMERICA INC FOR EXAMPLE NOW HAS 3000
INFORMATIONTECHNOLOGY EMPLOYEES UP FROM 90 IN 1983 AT MANY COMPANIES
MORE TECHNICIANS WILL BE NEEDED TO SERVICE COMPUTER NETWORKS AND MORE
PROGRAMMERS TO WRITE SOFTWARE

FOR AT LEAST A FEW YEARS HOWEVER TECHNOLOGYDRIVEN LAYOFFS SEEM LIKELY TO
DWARF NEW HIGHTECH JOBS MANY LAYOFF VICTIMS WILL HAVE TO SETTLE FOR THE
LOWPAYING OR PARTTIME POSITIONS THAT ARE DOMINATING RECENT JOB GROWTH
BECAUSE THEY GENERALLY AREN'T THE ONES WHO WILL GET THE NEW HIGHPAYING
JOBS A TELEPHONE OPERATOR ISN'T QUALIFIED TO INSTALL WIRELESS
COMMUNICATIONS EQUIPMENT FOR EXAMPLE THE DANGER IS THAT AMERICA'S WORK
FORCE COULD EVOLVE INTO AN ELITE MINORITY OF HIGHLY PAID KNOWLEDGE WORKERS
AND FRUSTRATED MASSES OF THE UNDEREMPLOYED OR UNEMPLOYED

ALREADY MANY WORKERS ARE AWARE THAT TECHNOLOGY CUTS TWO WAYS RIDING IN AN
INFOTEL VAN STEVE SYMACH A REPAIRMAN MARVELS AT HOW TECHNOLOGY HAS MADE
HIS JOB EASIER BUT HE REALIZES IT COULD COST HIM HIS JOB BEFORE HE PLANS
TO RETIRE IN 12 YEARS IF THE RESULT OF US BEING EFFICIENT IS ME BEING
LAID OFF THE SILVERHAIRED 18YEAR PHONECOMPANY VETERAN SAYS I HATE TO
SAY IT BUT I GUESS THAT'S PROGRESS 9402240036 940224 CLINTON SEEKING
LEGISLATION TO PRESERVE WIRETAP POWER

WASHINGTON THE CLINTON ADMINISTRATION IS LOOKING FOR LAWMAKERS TO SPONSOR
CONTROVERSIAL LEGISLATION THAT WOULD REQUIRE TELECOMMUNICATIONS COMPANIES TO
ENSURE THAT CALLS CAN BE TAPPED BY LAWENFORCEMENT OFFICIALS

BEYOND THAT THE PROPOSED BILL WOULD FORCE PHONE COMPANIES INCLUDING
MOBILE PHONE COMPANIES AND CABLE COMPANIES THAT OFFER PHONE SERVICE TO
PROVIDE CALL SET UP INFORMATION THAT TRACKS A CALL THROUGH A MAZE OF
NETWORKS

PRIVACY ADVOCATES TELEPHONE COMPANIES AND SOME LAWMAKERS HAVE EXPRESSED
STRONG CONCERNS THAT THE LEGISLATION ISN'T NEEDED OR GOES BEYOND ITS STATED
GOAL OF ALLOWING LAWENFORCEMENT AGENCIES TO CONDUCT WIRETAPS OVER ADVANCED
COMMUNICATIONS NETWORKS

AS PHONE NETWORKS EVOLVE THEY WILL BE ABLE TO DELIVER A WIDE VARIETY OF
VIDEO ENTERTAINMENT INFORMATION AND SHOPPING SERVICES AND THE BILL COULD
POSSIBLY LET LAWENFORCEMENT AGENCIES OBTAIN VAST AMOUNTS OF PERSONAL
INFORMATION SAID JERRY BERMAN EXECUTIVE DIRECTOR OF THE ELECTRONIC
FRONTIER FOUNDATION

OFFICIALS SCHEDULED A WHITE HOUSE BRIEFING TODAY TO EXPLAIN THEIR PROPOSAL
TO LONGDISTANCE AND LOCAL TELEPHONE COMPANIES AND EQUIPMENT MANUFACTURERS
A SPOKESMAN FOR AMERICAN TELEPHONE & TELEGRAPH CO SAID COMPANY OFFICIALS
HAVE NOT HAD A CHANCE TO EVALUATE THE LATEST PLAN BUT IN THE PAST WE'VE
SAID LEGISLATION IS NOT NECESSARY 9402240035 940224 WINTER OLYMPICS 1994
 LILLEHAMMER NORWAY  COPPING SOME TS UNDER IOC'S WATCHFUL EYE 
 BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL

LILLEHAMMER WHEN I GOT OFF MY PLANE AT THE OSLO AIRPORT MORE THAN TWO
WEEKS AGO THOROUGHLY JETLAGGED I HEADED STRAIGHT FOR THE GIFT SHOP THERE
I GOT GOOD NEWS AND BAD NEWS

THE GOOD NEWS WAS THE RICH ARRAY OF SOUVENIR TSHIRTS WITH WINTER SPORTS
THEMES ONE FEATURED HAGAR THE HORRIBLE THE COMICSTRIP VIKING WHO I'M TOLD
IS BIGGER IN NORWAY THAN IN THE US WAVING HIS SWORD AND SAYING SOMETHING
IN NORWEGIAN HAGAR AT THE OLYMPICS WHO'D HAVE THUNK IT

THE BAD NEWS WAS THAT CLOSER INSPECTION REVEALED THAT NONE OF THE SHIRTS
CONTAINED THE WORDS OLYMPICS OR EVEN LILLEHAMMER 1994 TO IDENTIFY THEM
AS GENUINE MEMENTOS OF THE WINTER GAMES

NO OLYMPIC TSHIRTS I ASKED THE CLERK IN DISBELIEF

YOU SHOULD GO TO LILLEHAMMER HE ANSWERED

GO TO LILLEHAMMER I DID THERE TO SEARCH THE BAZAARS FOR TSHIRTS IN THAT
I'VE HAD QUITE A BIT OF COMPANY PEOPLE FROM MANY NATIONS MAY HAVE COME HERE
AS ATHLETES OFFICIALS JOURNALISTS PICKPOCKETS OR PLAIN SPECTATORS BUT
OUR TRUE MISSION AT THIS AND SIMILAR EVENTS IS TO FILL TSHIRT ORDERS FOR
THE FOLKS BACK HOME NEITHER GOLD MEDALS NOR STERLING PROSE CAN MAKE UP FOR
A FAILURE IN THAT DEPARTMENT

WHEN YOU MAY ASK DID TSHIRTS GET TO BE SO IMPORTANT I DON'T KNOW I DO
RECALL A TIME WHEN A TSHIRT WAS A TSHIRT WHITE USUALLY BUT UNREMARKABLE
EVEN WHEN COLORED THEN SOMEONE HAD THE IDEA OF PUTTING PICTURES AND WORDS
UPON THEM AND COUTURE HAS NEVER BEEN THE SAME THAT PERSON HATCHED AN
INDUSTRY OF WORLDWIDE SIGNIFICANCE LIKE THE GUY IN THE GODFATHER HE OR
SHE CAN WHISPER TO HIS OR HER CRONIES WE'RE BIGGER THAN US STEEL

THERE ARE OTHER SOUVENIRS TO BE HAD HERE BESIDES TSHIRTS OF COURSE THERE
ARE KRISTIN AND HAKON DOLLS DEPICTING THE GAMES' FLAXENHAIRED CHILD
MASCOTS THERE ARE ALL MANNER OF TROLLS THE STOOPED HAIRY UGLY NORWEGIAN
FOLK CRITTERS THIS LAND WOULD BE BETTER OFF DITCHING THERE ARE HORNED
PLASTIC VIKING HELMETS THERE ARE THE BEAUTIFUL MULTICOLORED NATIVE
SWEATERS

BUT THE DOLLS AND THE HELMETS ARE STRICTLY FOR TOTS THE SWEATERS ARE TOO
EXPENSIVE FOR MASS PURCHASE AND NOBODY ASKED ME TO BRING BACK A TROLL
TSHIRTS REMAIN THE PERFECT PLEASEEVERYONE GIFT ESPECIALLY BECAUSE THESE
DAYS ONE SIZE EXTRA LARGE FITS ALL

TSHIRT SHOPPING ISN'T AS EASY AS IT MAY SOUND BECAUSE THE IDEA IS TO BRING
HOME SHIRTS THAT HAVE SOME STYLE AND LOCAL FLAVOR AS WELL AS COMMEMORATE AN
OCCASION AT THE 1986 GOODWILL GAMES IN MOSCOW A TSHIRT MUST EVENT THE
ONLY SHIRTS AVAILABLE WERE THROUGH THE TURNER BROADCASTING CO SPONSORS THE
SOVIETS BEING UNSWIFT IN MATTERS OF COMMERCE EVEN THE TURNER OFFERINGS FELL
SHORT THOUGH BECAUSE THEIR MOTTOS WERE IN ENGLISH AND NOBODY WANTED TO
COME HOME FROM THE USSR WITH THAT

THEN SOMEBODY OK ME SUGGESTED THEY PRINT UP A BATCH IN THE CYRILLIC
ALPHABET THEY SENT THE INSTRUCTIONS TO THEIR ATLANTA BASE AND SOON BACK
CAME THE APPROPRIATE GOODS THE RESULT WAS A SOUVENIR TO SAVOR

AS A VETERAN OF SIX OLYMPICS I CAN REPORT SIMILAR PROBLEMS AT THESE
AFFAIRS THE RUB USUALLY HAS COME FROM THE INTERNATIONAL OLYMPIC COMMITTEE
WHICH IN THE NAME OF PROFIT AND PROPRIETY CLAMPS A TIGHT GRIP UPON THE USE
OF THE OLYMPIC NAME AND FIVERINGED SYMBOL IN CALGARY SIX YEARS AGO THE
IOC WENT SO FAR AS TO DISPATCH ITS BRIEFCASE BRIGADE TO THWART A MISS NUDE
OLYMPICS CONTEST AT A TOPLESS BAR THE BAR DROPPED THE NAME BUT STAGED THE
CONTEST ANYWAY

SLAVISH COMPLIANCE WITH IOC LICENSING AGREEMENTS COUPLED WITH A LACK OF
IMAGINATION AND VARIETY IN THE OFFICIAL STUFF HAS MADE SOME OLYMPICS
VIRTUAL TSHIRT WASTELANDS AT THE WINTER GAMES IN ALBERTVILLE EVERY SHIRT
BORE THE SAME WIMPY DESIGN OF A SMALL STYLIZED OLYMPIC FLAME

BARCELONA AND SEOUL SITES OF THE PAST TWO SUMMER GAMES WERE ONLY A LITTLE
BETTER THEIR BASIC TSHIRT DESIGN WAS SPLASHIER THAN ALBERTVILLE'S BUT
VARIETY WAS NIL THE SAVING GRACE THERE WAS PRICE THE SHOPS IN SEOUL'S
ITAEWON DISTRICT AND ON THE RAMBLAS IN BARCELONA WERE OPEN TO BARGAINING
AND I WAS ABLE TO SWING NICE MARKDOWNS

CALGARY IN THE WINTER OF 1988 WAS SAVED BY A TERRIFIC MULTIFLAG SHIRT THAT
MAY OR MAY NOT HAVE CARRIED THE OFFICIAL STAMP LOS ANGELES IN '84 WAS
TSHIRT PARADISE BECAUSE NOBODY PAID THE SLIGHTEST ATTENTION TO THE IOC A
MILLION FLOWERS BLOSSOMED ONE OF MY KIDS STILL HAS AN OLYMPIG GAMES SHIRT
FROM THERE DEPICTING PORKERS IN VARIOUS ATHLETIC ACTS

NORWAY IS A LAWABIDING LAND AND SO ALAS THERE HASN'T BEEN NOTICEABLE
TSHIRT BOOTLEGGING HERE NONETHELESS THE OFFICIAL SHIRTS ARE BOTH
INTERESTING AND VARIED SO GOOD THAT THEY RANK JUST BEHIND LA'S OVERALL
THE BEST I THINK BEAR THE GAMES' VENUE SYMBOLS MODELED ON THE
LUMPYLOOKING STICK FIGURE OF A SKIER ETCHED UPON A CAVE WALL HEREABOUTS
SOME 4000 YEARS AGO MY SEARCH HAS BEEN NARROWED TO A PARTICULAR SHIRT IN
WHICH THE LUMPY GUY IN GRAY HOLDS ALOFT THE OLYMPIC TORCH UPON A FIELD OF
BLACK

ALL THAT REMAINS IS THE BARGAINING BUT I'M HAVING LITTLE LUCK THERE THE
DISAPPROVING LOOKS I'VE RECEIVED WHEN I'VE SUGGESTED A DISCOUNT FOR BUYING A
DOZEN SHIRTS INDICATE THIS GOES AGAINST THE NATIONAL CHARACTER

BUT ONE MERCHANT DID OFFER TO LOP NINE KRONER OFF THE PERSHIRT PRICE OF 129
KRONER ABOUT 17 THAT EVERYONE CHARGES AND I'M HOPEFUL OF DOING BETTER AS
THE DAYS OF THESE GAMES DWINDLE DOWN TIME IS THE BARGAINHUNTER'S ALLY

AND IF ALL ELSE FAILS I CAN ALWAYS PAY RETAIL 9402240032 940224 BUSINESS
BRIEF CALDOR CORP FOURTHQUARTER NET FELL 6 ON DEBTRETIREMENT
CHARGE

DISCOUNT RETAILER CALDOR CORP SAID THAT FISCAL FOURTHQUARTER NET INCOME
FELL 6 MAINLY DUE TO A CHARGE FOR RETIREMENT OF DEBT

FOR THE QUARTER ENDED JAN 29 NET INCOME WAS 341 MILLION OR 203 A
SHARE INCLUDING A CHARGE OF 38 MILLION OR 23 CENTS A SHARE FOR THE DEBT
RETIREMENT A YEAR EARLIER THE NORWALK CONN COMPANY HAD FOURTHQUARTER
PROFIT OF 363 MILLION OR 245 A SHARE SALES FOR THE PERIOD ROSE 14 TO
8585 MILLION FROM 7505 MILLION

HEAVY FOURTHQUARTER PROMOTIONS AND A TOUGH ECONOMY CONTRIBUTED TO EARNINGS
FOR THE YEAR THAT WERE LOWER THAN THE COMPANY'S GOALS CHIEF EXECUTIVE DON
R CLARKE SAID HE SAID THE COMPANY PLANS TO CONTINUE ITS GROWTH PROGRAM AND
OPEN 14 TO 17 STORES

FOR THE FULL YEAR NET DECLINED 38 TO 332 MILLION OR 201 A SHARE
AFTER CHARGES OF 54 MILLION FOR THE DEBT RETIREMENT AND 28 MILLION FOR
ACCOUNTING CHANGES THE RETAILER TYPICALLY EARNS THE BULK OF ITS PROFITS IN
THE FOURTH QUARTER A YEAR EARLIER CALDOR HAD NET OF 345 MILLION OR
235 A SHARE AFTER A 28 MILLION CHARGE FOR ACCOUNTING CHANGES SALES FOR
THE YEAR ROSE 13 TO 241 BILLION FROM 213 BILLION 9402240031 940224
CREDIT RATINGS

FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO STANDARD & POOR'S CORP
DOWNGRADED THIS COMPANY'S SENIOR DEBT TO TRIPLEBMINUS FROM TRIPLEB AND
KEPT THE RATINGS ON ITS CREDITWATCH WITH NEGATIVE IMPLICATIONS ABOUT 185
MILLION IS AFFECTED THE RATINGS AGENCY SAID THE DOWNGRADE STEMS IN PART
FROM WEAKER EARNINGS LEVELS EXPECTED FOR THE NEXT FEW YEARS LAST WEEK THE
COMPANY SAID IT WOULD SUSPEND ITS DIVIDEND AND SEEK NEW LONGTERM FINANCING
FIGGIE MAKES AND MARKETS FIREPROTECTION SYSTEMS PACKAGING MACHINERY AND
OTHER PRODUCTS WE CERTAINLY UNDERSTAND GIVEN OUR RECENT ANNOUNCEMENTS A
FIGGIE SPOKESMAN SAID BUT WE'RE DISAPPOINTED WE KNOW WE NEED TO IMPROVE
OUR RESULTS SO THAT THE RATINGS AGENCIES COULD THEN UPGRADE OUR RATING OVER
TIME

USF&G CORP BALTIMORE MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED
THE RATING OF USF&G'S SENIOR DEBT TO BA1 FROM BA2 ABOUT 590 MILLION OF
SECURITIES IS AFFECTED MOODY'S SAID THE RATING UPGRADE IS BASED PRIMARILY
ON THE COMPANY'S IMPROVING CORE EARNINGS STRENGTHENED BALANCE SHEET AND
DECREASED FINANCIAL LEVERAGE THE RATINGS AGENCY ALSO CONFIRMED AT BAA2 THE
FINANCIAL STRENGTH RATING OF THE COMPANY'S MAIN PROPERTY/CASUALTY SUBSIDIARY
AND AT BAA3 THE RATING OF ITS LIFE INSURANCE UNIT 9402240030 940224
WHAT'S NEWS  BUSINESS AND FINANCE

BELL ATLANTIC'S PLANNED ACQUISITION OF TELECOMMUNICATIONS COLLAPSED THE
TWO COMPANIES EXPRESSED VIRTUALLY NO HOPE OF RESUMING EFFORTS TO WED AND
BLAMED A NEW FEDERAL ROLLBACK IN CABLE RATES AND THE UNSETTLED REGULATORY
CLIMATE FOR DERAILING THE MULTIBILLIONDOLLAR PACT BUT PEOPLE CLOSE TO
BOTH COMPANIES MADE IT CLEAR THE DEAL WAS SCUTTLED BECAUSE OF BITTER
DISPUTES OVER PRICE

THE BREAKDOWN OF THE BELL ATLANTICTCI PACT COULD CHILL THE MERGER FRENZY
AMONG TELEPHONE AND CABLE COMPANIES BUT INDUSTRY EXECUTIVES SAY
TECHNOLOGICAL AND FINANCIAL FORCES DRIVING THE CONSOLIDATION ARE
UNRELENTING

A SENATE PANEL VOTED TO LET BANKS OPERATE NATIONWIDE BRANCH NETWORKS ADDING
STEAM TO A BILL THAT WOULD ACCELERATE THE WAVE OF BANK ACQUISITIONS AND
ALLOW BANKS TO CONSOLIDATE SAVING THE INDUSTRY BILLIONS OF DOLLARS A YEAR

KODAK PLANS TO OVERHAUL ITS KEY IMAGING GROUP TO PUT MORE EMPHASIS ON
ELECTRONIC TECHNOLOGY AND REDUCE STAFF IN SEVERAL CORPORATE DIVISIONS

BOND PRICES FELL AMID A WEAK GOVERNMENT AUCTION OF TWOYEAR NOTES AND STOCKS
FOLLOWED THE TREASURY'S 30YEAR ISSUE LOST 5/8 POINT ITS YIELD WAS 665
THE DOW JONES INDUSTRIAL AVERAGE SANK 1998 POINTS TO 389168

SCORES OF PRUDENTIAL SECURITIES BROKERS ARE SELLING MUTUAL FUNDS AND STOCKS
WITHOUT PROPER BROKERAGE LICENSES IN VARIOUS STATES INTERNAL PRUDENTIAL
COMPLIANCE DOCUMENTS SHOW

MICROSOFT LOST A 120 MILLION JUDGMENT IN A PATENT FEUD WITH STAC
ELECTRONICS ALTHOUGH THE JURY ALSO FOUND THAT STAC HAD STOLEN SECRETS AND
AWARDED MICROSOFT 136 MILLION BUT THE RULING COULD POSE SOFTWAREPATENT
PROBLEMS FOR MICROSOFT IN THE FUTURE

THE WHITE HOUSE SEEKS TO SPEED UP THE REVIEW PROCESS OF LICENSING REQUESTS
FOR THE EXPORT OF SENSITIVE TECHNOLOGIES BUT CORPORATE AMERICA IS ALREADY
CALLING THE EFFORT INADEQUATE

THE HUGE OIL SURPLUS THAT ROCKED PETROLEUM MARKETS IN RECENT MONTHS IS
DECREASING ANALYSTS SAY POINTING TO THE HARSH US WINTER AND AN ECONOMIC
RECOVERY IN OILCONSUMING NATIONS

FORMER TREASURY SECRETARY BRADY IS LAUNCHING AN INVESTMENT COMPANY TO
SPECIALIZE IN EMERGING MARKETS

AUTO MAKERS RECALLED 11 MILLION VEHICLES IN 1993 THE MOST SINCE 1977 HONDA
MOTOR LED THE LIST BASED ON A PERCENTAGE OF 1993 VEHICLE SALES

CS FIRST BOSTON NAMED XAVIER ROLET OF GOLDMAN SACHS MANAGING DIRECTOR AND
COHEAD OF EUROPEAN EQUITIES

IBM'S LEGAL DEFENSE OF ITS UPGRADING AND PRICING POLICIES AGAINST A COMPUTER
SERVICE COMPANY'S CLAIMS IS HAUNTED BY A 1956 CONSENT DECREE THAT CREATED
THE MARKET FOR SUCH FIRMS

MACLEAN HUNTER'S EFFORTS TO OFFER SHAREHOLDERS AN ALTERNATIVE TO ROGERS'S
BID TO BUY THE FIRM WERE DEALT A BLOW THE CANADIAN GOVERNMENT SAID IT WILL
CLOSE A TAX LOOPHOLE THAT MACLEAN HAD PLANNED TO USE TO MAXIMIZE PROCEEDS
FROM PLANNED ASSET SALES

THE US REPORTED A BUDGET SURPLUS OF 1561 BILLION IN JANUARY COMPARED
WITH 2982 BILLION A YEAR AGO

WHITTLE PLANS TO SPEND AN ADDITIONAL 200 MILLION TO LAUNCH THE FIRST US
INTERACTIVE MEDICAL NEWS NETWORK FOR PHYSICIANS BUT IS STILL NEGOTIATING
SPONSORSHIPS WITH MAJOR DRUG FIRMS

INTERPUBLIC'S MCCANNERICKSON SAID JOHN DOONER JR WILL SUCCEED ROBERT JAMES
AS CHAIRMAN AT YEAR END

BONDS LEHMAN BROTHERS TREASURY INDEX 542772 OFF 2673

COMMODITIES OIL 1441 A BARREL UP 2 CENTS DOW JONES FUTURES INDEX
14565 OFF 044 SPOT INDEX 13167 UP 024

DOLLAR 10575 YEN UP 010 17284 MARKS UP 00049 9402240029 940224
MICROSOFT TO PAY STAC JUDGMENT OF 120 MILLION  US JURY IN
PATENT CASE FINDS THAT BOTH SIDES SWIPED TRADE SECRETS  BY
CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL

A FEDERAL JURY IN LOS ANGELES HIT MICROSOFT CORP WITH A 120 MILLION
JUDGMENT IN A CLOSELY WATCHED PATENT FEUD WITH LITTLE STAC ELECTRONICS

THE SAME JURY FOUND THAT LOS ANGELESBASED STAC HAD SWIPED TRADE SECRETS
FROM MICROSOFT AND AWARDED THE SOFTWARE GIANT 136 MILLION NONETHELESS
MICROSOFT IS THE CLEAR LOSER IN THE CASE WHICH REVOLVED AROUND MUTUAL
ACCUSATIONS OF PATENT INFRINGEMENT AND THEFT OF TRADE SECRETS INVOLVING
DATACOMPRESSION PRODUCTS WHICH INCREASE COMPUTERSTORAGE CAPACITY
ALTHOUGH MICROSOFT'S CASH HOARD OF 28 BILLION AND ITS OTHER RESOURCES MEAN
IT CAN EASILY ABSORB A 120 MILLION HIT STAC SAID IT WILL IMMEDIATELY SEEK
PERMANENT INJUNCTIONS BARRING MICROSOFT FROM SELLING PRODUCTS THAT CONTAIN
TECHNOLOGY THE JURY FOUND TO INFRINGE ON STAC PATENTS

SUCH AN INJUNCTION WOULD COVER TWO OF MICROSOFT'S LATEST VERSIONS OF ITS
POPULAR MSDOS OPERATING SYSTEMS KNOWN AS MSDOS 60 AND 62 OF WHICH
MICROSOFT EXPECTS TO SELL TENS OF MILLIONS OF COPIES THIS YEAR MOREOVER
THE CASE COULD SET PRECEDENTS IN THE VAGUE AND STILL EMERGING AREA OF
SOFTWARE PATENTS THAT MAY BEDEVIL MICROSOFT IN THE FUTURE AND INVITE SIMILAR
PATENT CHALLENGES FROM OTHER RIVALS IT ALSO IS CERTAIN TO HIGHLIGHT
LINGERING QUESTIONS ABOUT MICROSOFT'S AGGRESSIVE COMPETITIVE TACTICS WHICH
HAVE EMBROILED IT IN MANY LAWSUITS AND TRIGGERED A CONTINUING US ANTITRUST
INQUIRY

MICROSOFT SAID IT WOULD APPEAL THE JURY AWARD IT SAID IT DOESN'T ANTICIPATE
ANY MATERIAL DISRUPTION OF ITS MSDOS SHIPMENTS AND IT EXPECTS TO QUICKLY
SHIFT TO NEW VERSIONS OF MSDOS PRODUCTS THAT DON'T CONTAIN THE TECHNOLOGY
THAT THE JURY RULED INFRINGED ON STAC'S PATENTS SOME ANALYSTS WERE DOUBTFUL
ABOUT THAT MICROSOFT ALSO SAID IT WILL SET UP A RESERVE COVERING THE 120
MILLION A STEP WHICH WOULD KNOCK 26 CENTS OFF THE COMPANY'S THIRDQUARTER
EARNINGS

MICROSOFT ALSO SAID IT WOULD SEEK AN INJUNCTION TRYING TO BLOCK SALES OF
CERTAIN STAC PRODUCTS BASED ON THE JURY'S TRADE SECRET RULING NONETHELESS
GARY CLOW STAC'S CHIEF EXECUTIVE OFFICER HAILED THE VERDICT WE HAVE BEEN
VINDICATED HE SAID

THE DISPUTE BETWEEN STAC AND MICROSOFT HAD ITS ROOTS IN FAILED EFFORTS BY
MICROSOFT TO LICENSE STAC'S DATACOMPRESSION PRODUCTS SUCH PRODUCTS ARE
VALUABLE BECAUSE THEY INCREASE COMPUTERSTORAGE CAPACITY AND SPEED FOR
RELATIVELY LITTLE COST STAC FILED A LAWSUIT IN JANUARY 1993 ALLEGING THAT
MICROSOFT AFTER FAILING TO GET A LICENSE FROM STAC SIMPLY COPIED THE
TECHNOLOGY IN TWO PATENTED STAC PRODUCTS AND BUILT IT INTO ITS OWN
DATACOMPRESSION PRODUCTS WHICH WERE SOLD IN MICROSOFT'S BLOCKBUSTER MSDOS
60 AND 62 OPERATING SYSTEMS STAC ALLEGED THAT THE PATENT INFRINGEMENTS
ROBBED IT OF SALES FORCED IT TO LAY OFF WORKERS AND VIRTUALLY CRIPPLED THE
COMPANY

MICROSOFT COUNTERED LAST SUMMER WITH A SUIT OF ITS OWN CHARGING STAC WITH
PILFERING MICROSOFT TRADE SECRETS THE CASES WERE CONSOLIDATED AND THE JURY
CONCLUDED IN YESTERDAY'S VERDICT THAT MICROSOFT HAD INFRINGED ON TWO STAC
PATENTS AND DAMAGED STAC TO THE TUNE OF 120 MILLION THE JURY DENIED A STAC
CLAIM THAT COULD HAVE LED TO TREBLE DAMAGES STAC'S MR CLOW SAID STAC MAY
APPEAL THAT PORTION OF THE JURY VERDICT

THE CASE COULD HAVE BROAD IMPLICATIONS FOR SEVERAL AREAS OF PATENT AND
TRADESECRETS LAW WHICH ARE MUDDY ON HIGHTECH PRODUCTS FOR ONE THING THE
JURY FOUND IN MICROSOFT'S FAVOR ON ONE OF ITS SEVEN COUNTERCLAIMS INVOLVING
CHARGES THAT STAC'S REVERSE ENGINEERING OF CERTAIN UNDOCUMENTED CALLS OR
SEGMENTS OF SOFTWARE CODE AMOUNTED TO TRADESECRET THEFT SUCH REVERSE
ENGINEERING IS COMMON IN THE TECHNOLOGY BUSINESS STAC'S MR CLOW SAID THE
FINDING IF BROADLY APPLIED COULD HAVE SERIOUS IMPLICATIONS  BECAUSE
MICROSOFT APARENTLY CAN PROTECT UNDOCUMENTED CALLS FROM REVERSE ENGINEERING
WHICH IS WIDESPREAD IN THE INDUSTRY

BEYOND THAT MR CLOW SAID THE STAC CASE COULD PROVIDE A MODEL FOR HOW
SMALLER COMPANIES CAN USE PATENT PROTECTION TO COMPETE WITH LARGER RIVALS
SUCH AS MICROSOFT THE CASE WILL HAVE A MONUMENTAL IMPACT ON THIS INDUSTRY
BECAUSE WE'VE PROVIDED A PROTOTYPE SHOWING THAT SMALL ENTREPRENEURIAL
COMPANIES CAN PROTECT THEIR IDEAS AND USE PATENTS TO ESSENTIALLY ERECT
BARRIERS AGAINST VERY STRONG VERY AGGRESSIVE COMPETITORS MR CLOW SAID

ALTHOUGH MICROSOFT HAS SUED AND BEEN SUED NUMEROUS TIMES OVER PATENTS THE
STAC CASE MARKS THE FIRST TIME MICROSOFT HAS GONE TO TRIAL ON THE ISSUE
PATENT ATTORNEYS SAID THAT IF THE VERDICT STANDS MICROSOFT WOULD HAVE
LITTLE OPTION BUT TO MODIFY MSDOS 62 SO IT NO LONGER VIOLATES THE STAC
PATENT OR TO PAY STAC LICENSING FEES WHICH COULD BE SUBSTANTIAL MR CLOW
SAID STAC WOULD BE OPEN TO DISCUSSING SUCH A LICENSING ARRANGEMENT WITH
MICROSOFT

NEWS OF THE VERDICT CAME LATE IN THE DAY AFTER MICROSOFT HAD MADE SOME
PRODUCTRELATED ANNOUNCEMENTS THAT WERE WELCOMED BY THE MARKET IN NASDAQ
STOCK MARKET TRADING MICROSOFT SHARES ROSE 150 TO 81 WHILE STAC SHARES
ROSE 125 CENTS TO 4375 ANALYSTS SAID THAT MICROSOFT STOCK COULD SUFFER
IF SALES OF MSDOS 62 ARE INTERRUPTED FOR ANY LENGTH OF TIME 9402240028
940224 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY  TV HIGHLIGHTS 
 BY LEE LESCAZE AND TIMOTHY K SMITH

CBS HAD FEW EVENTS TO CHOOSE FROM TUESDAY NIGHT AND PERHAPS BECAUSE OF THE
SLIM PICKINGS PRODUCED ITS BEST BROADCAST OF THE OLYMPICS IT BEGAN WITH
PHIL LIGGETT AND JEFF HASTINGS DOING THEIR SECOND FINE JOB WITH
LILLEHAMMER'S SKI JUMPING AL TRAUTWIG WAS EVEN BETTER IN DESCRIBING THE
MEN'S 4X10K CROSSCOUNTRY SKIING RELAY RACE MR TRAUTWIG HAD BEEN CONFINED
TO BITTY BITES OF SOUND ON EARLIER EVENINGS BUT GIVEN SOME AIR TIME HE AND
THE WELLPLACED CBS CAMERAS MADE THE RELAY ONE OF THE THRILLING TV MOMENTS
OF THE GAMES

MOMENTS LATER CHARLES KURALT GAVE US VIEWERS A RIVETING HISTORY LESSON
WITH A MICRODOCUMENTARY ON THE SUCCESS OF A SMALL SQUAD OF NORWEGIAN AND
NORWEGIANAMERICAN SKI COMMANDOS IN FRUSTRATING NAZI PRODUCTION OF HEAVY
WATER A SUBSTANCE THAT COULD HAVE BEEN USED IN ATOMICBOMB CONSTRUCTION AT
ITS END THE DOCUMENTARY SEEMED TO CLAIM TOO MUCH POTENTIAL FOR THE NAZI
BOMB PROGRAM AND IT NEVER MENTIONED NORWAY'S COLLABORATIONIST GOVERNMENT
THAT GAVE THE WORLD THE WORD QUISLING BUT IT WAS AN EXPERTLY DONE PROGRAM
INCLUDING THE WORDS AND FACES OF THE SURVIVING COMMANDOS

GREG GUMBEL HAD A BLAND INTERVIEW WITH NANCY KERRIGAN FOLLOWED BY AN EVEN
BLANDER ONE WITH CONNIE CHUNG TONYA HARDING REFUSED TO BE INTERVIEWED SO
CBS NEWS COANCHOR MS CHUNG WAS HER STANDIN CAN'T YOU HEAR FUTURE
PRODUCTION MEETINGS AT CBS MARLA'S NOT AVAILABLE GET CONNIE

AFTER FAILING TO EXPLAIN OR ARGUE THE RESULTS OF THE ICEDANCING COMPETITION
MONDAY NIGHT DESPITE HOURS OF AVAILABLE TIME BETWEEN THE COMPETITION AND
THE BROADCAST MR GUMBEL AND COMMENTATOR TRACY WILSON A FORMER ICE
DANCER INTERVIEWED JAYNE TORVILL AND CHRISTOPHER DEAN TO CHEW OVER WHAT
HAPPENED THE CBS PAIR COULDN'T QUITE GET MS TORVILL AND MR DEAN TO SAY
WE WUZ ROBBED BUT THEY CAME CLOSE OF COURSE THEY WERE ROBBED BUT ALL
MS WILSON WOULD CONCEDE WAS THAT THERE ARE A LOT OF GRAY AREAS IN
ICEDANCING RULES

YEAH SO MANY THAT THE SPORT OUGHT TO WEAR A PAPER BAG OVER ITS HEAD WE
STILL SAY DROP IT FROM THE GAMES WE REALIZE WE'RE SWIMMING AGAINST THE
TIDE BEACH VOLLEYBALL WILL BE IN THE 1996 ATLANTA OLYMPICS

THE MEMORABLE MEN'S CROSSCOUNTRY RELAY COMBINED MANY ELEMENTS OF SPORTING
DRAMA ULVANG THE UPSET THE SILENCED MULTITUDE AT THE FINISH BUT ONE
OF THE THINGS THAT MADE IT GREAT VIEWING IN US LIVING ROOMS WAS THE
EXPLANATORY CARE THAT CBS LAVISHED ON THE BROADCAST IT'S A PITY THAT A
SIMILAR EFFORT WASN'T MADE FOR THE SHORTTRACK SPEED SKATING THAT FOLLOWED
THIS IS A LOVABLE LITTLE SPORT STOCKCAR RACING WITHOUT THE CARS OR
PERHAPS SKATING'S ANSWER TO THE OLD CLUB FIGHTS IN WHICH THE WINNER WAS THE
ONE LEFT STANDING BUT TO THE UNTUTORED EYE IT'S MYSTERIOUS THE RELAY
EVENT LOOKS LIKE CONCENTRIC HUMAN TORNADOES WHAT FUN IT MIGHT BE WITH SOME
TUTORING

CBS AGAIN SMASHED ITS COMPETITION TUESDAY NIGHT ITS OLYMPIC BROADCAST WAS
WATCHED BY 249 OF THE NATION'S TV HOUSEHOLDS ACCORDING TO AC NIELSEN
CO ABC DREW 131 AND NBC HAD 103 9402240026 940224 CORRECTIONS &
AMPLIFICATIONS

POLICY MANAGEMENT SYSTEMS CORP REPORTED APPROXIMATELY 15 MILLION IN
OPERATING PROFIT FOR THE FIRST SIX MONTHS OF 1993 BEFORE THE EFFECT OF
RESTRUCTURING AND OTHER SPECIAL CHARGES THE FIGURE WAS MISSTATED AS 38
MILLION IN AN ARTICLE YESTERDAY

THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID DAVID T NADELL
ST CLAIR SHORES MICH WAS FINED 2500 AND SUSPENDED IN ANY PRINCIPAL
CAPACITY FOR 60 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS AN ARTICLE
FRIDAY INCORRECTLY SAID MR NADELL WAS SUSPENDED IN ANY CAPACITY

FAMILIES WITH THE LOWEST 20 OF TOTAL HOUSEHOLD INCOME HELD 7 OF HOUSEHOLD
NET WORTH IN 1991 WHILE THOSE WITH THE HIGHEST 20 OF INCOME HELD 447 OF
THE NET WORTH ACCORDING TO A CENSUS BUREAU REPORT A JAN 26 ARTICLE SAID
THAT THE RICHEST 20 OF AMERICANS HELD ABOUT 45 OF ALL THE WEALTH WHILE THE
POOREST 20 HELD ONLY 7 9402240024 940224 WORLD MARKETS LONDON SHARES
END WITH GAINS BUT OFF HIGHS TOKYO PRICES FINISH MIXED IN RELUCTANT
MARKET  A WALL STREET JOURNAL NEWS ROUNDUP

LONDON SHARES ROSE BUT ENDED WELL BELOW YESTERDAY'S HIGHS AS SENTIMENT WAS
UNDERMINED BY A SLUGGISH START ON WALL STREET FRANKFURT EQUITIES ADVANCED
AS THE BOND MARKET STEADIED PARIS PRICES JUMPED 11 ON HOPES FOR A FRENCH
REDUCTION IN INTEREST RATES

TOKYO STOCKS FINISHED MIXED IN SLEEPY DEALINGS AS MANY RELUCTANT INVESTORS
WAITED FOR SIGNS OF JAPANESE GOVERNMENT INTENTIONS ON TRIMMING INCOME TAXES
AND BOOSTING TRADE WITH THE US

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11582 UP 025 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN
MARKETS AND LOWER AMERICAN MARKETS

PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 24403 UP 997 OR 426 WITH ASIATIC DEVELOPMENT OF
MALAYSIA POSTING AN 87 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS
TRAILED AT 10742 DOWN 155 OR 14 WITH ENERGY SERVICE OF THE US
SLIDING 36 IN LOCAL CURRENCY

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 82
POINTS TO 33419 THE FT 30STOCK INDEX EDGED UP 19 POINTS TO 25784
VOLUME WAS 8224 MILLION SHARES UP FROM 6252 MILLION SHARES IN THE
PREVIOUS SESSION

STOCKS IN THE 100 INDEX WERE MIXED WITH COMPANIES THAT REPORTED EARNINGS
SHOWING THE BIGGEST GAINS AND LOSSES OF THE DAY NEW YORK STOCKS' WEAK
OPENING WAS MAINLY RESPONSIBLE FOR PULLING THE BENCHMARK GAUGE DOWN FROM THE
SESSION PEAK OF 33550 THE EXCHANGE WAS HEAVILY INFLUENCED BY ACTIVITY SUCH
AS BASKET TRADES IN THE FUTURES MARKET

THE BOURSE OPENED SLIGHTLY HIGHER AS INVESTORS WERE RELIEVED BY US
FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S CONGRESSIONAL REMARKS TUESDAY ON
MONETARY POLICY WHICH CONFORMED WITH EXPECTATIONS IN LONDON STOCKS
REMAINED IN POSITIVE TERRITORY UNTIL THE RESULTS OF A GILT OR GOVERNMENT
BOND AUCTION SHOWED RELATIVELY LOW DEMAND ALSO DISAPPOINTING THE STOCK
MARKET

IN FRANKFURT SHARES ROSE SOLIDLY IN QUIET DEALINGS HELPED BY STABILIZATION
OF THE BOND MARKET THE DAX 30STOCK INDEX CLIMBED 2005 POINTS TO 212767
THOUGH THE BOND MARKET SLIPPED BACK FOLLOWING EARLY GAINS ON THE GREENSPAN
REMARKS THE OVERALL EFFECT ON THE STOCK MARKET WAS POSITIVE IN THE PAST
YEAR GERMANY'S STOCK AND BOND MARKETS HAVE TRACKED EACH OTHER CLOSELY AS
THE STOCK EXCHANGE LOOKS TO BONDS AS AN INDICATOR

IN PARIS THE MARKET'S RALLY WAS BOLSTERED BY HOPES FOR A BANK OF FRANCE
INTERESTRATE CUT THIS WEEK BUT VOLUME WAS EXTREMELY LOW OTHER CENTRAL
BANKS IN THE EUROPEAN MONETARY SYSTEM CORE REDUCED LENDING RATES AFTER
GERMANY LED THE WAY LAST WEEK

IN AMSTERDAM SHARES POSTED STRONG AND BROAD GAINS BUOYED BY HIGHER PRICES
ON OTHER EUROPEAN BOURSES AND BY A RALLY IN THE DUTCH BOND MARKET IN
MADRID FOLLOWING SEVERAL DAYS OF DECLINES STOCKS STAGED A TECHNICAL
REBOUND THOUGH THEY FINISHED OFF THEIR HIGHS AFTER THE WEAK OPENING IN NEW
YORK THE SPANISH CENTRAL BANK'S CUT TO 85 FROM 875 IN ITS 7TO13DAY
REPURCHASE TENDER YESTERDAY MORNING HAD BEEN DISCOUNTED IN STOCK PRICES AND
DIDN'T HAVE ANY AFFECT ON THEM IN MILAN PRICES DROPPED ATTRIBUTED TO
PROFITTAKING AND THE COMING ITALIAN ELECTION CAMPAIGN

IN STOCKHOLM EQUITIES ADVANCED AFTER THREE LOSING SESSIONS IN A ROW THOUGH
TRADING WAS DULL AND LARGELY TRENDLESS WITH BLUECHIP PRICES REMAINING
WITHIN NARROW RANGES IN ZURICH STOCKS RALLIED 15 IN ACTIVE DEALINGS
BUOYED BY THE PREVIOUS DAY'S GAINS ON WALL STREET AND BY ENTHUSIASM ABOUT
SWISS CORPORATE NEWS MANY INVESTORS FOUND BARGAINS OR COVERED SHORT OR
OVERSOLD POSITIONS

IN MEXICO CITY STOCKS PLUNGED 24 IN CONTINUED PROFITTAKING AS INVESTORS
IGNORED ANOTHER SIGNIFICANT DROP IN BELLWETHER MEXICAN INTEREST RATES ON THE
BELIEF THAT THE MARKET REMAINS OVERVALUED

OVERSEAS INVESTORS DID MOST OF THE BUYING WHILE JAPANESE CORPORATIONS
REMAINED SELLERS DEALERS HELD FEW POSITIONS AS WEDNESDAY WAS THE LAST DAY
OF TRADING FOR SETTLEMENT IN THIS MONTH'S ACCOUNT FURTHER SAPPING MARKET
VITALITY CONSUMER CONSUMPTIONRELATED SHARES WERE STRONGER ON A NEWS REPORT
THAT THE GOVERNMENT WAS CONSIDERING APPLYING AN INCOMETAX CUT FOR LONGER
THAN THE PROPOSED ONEYEAR PERIOD

THE TOKYO MARKET ALSO WAS QUIET AS INVESTORS WAITED FOR ANY JAPANESE TRADE
MEASURES TO MOLLIFY THE US AHEAD OF SATURDAY'S MEETING OF OFFICIALS FROM
THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS FURTHERMORE THE JAPANESE
YEN'S REBOUND AGAINST THE US DOLLAR PUT ON HOLD THE MARKET'S REBOUND FROM
ITS CURRENCYMARKETINDUCED TUMBLE AT THE START OF LAST WEEK

IN SYDNEY ON PERCEPTIONS THAT THE MARKET'S RECENT CORRECTION SEEMED TO HAVE
ABATED PRICES CLOSED MOSTLY HIGHER LIFTED BY AN EASING OF FEARS OF RISING
US INTEREST RATES BASED ON THE REMARKS BY THE US FEDERAL RESERVE CHIEF
IN HONG KONG SHARES POSTED ANOTHER STRONG RISE PROPELLED BY A 12 GAIN
FOR THE PROPERTY SECTOR BUT TURNOVER REMAINED ANEMIC THE MAIN INDEX HEADED
UP IN WHAT WAS TERMED A TECHNICAL REBOUND BUT SLIPPED FROM ITS PEAK IN THE
FINAL MINUTES TRACKING THE MARKET FOR STOCKINDEX FUTURES

IN SINGAPORE SHARES ROSE ABOUT 1 IN ACTIVE DEALINGS WITH OVERTHECOUNTER
ISSUES ACCOUNTING FOR THE INCREASED VOLUME INSTITUTIONS BOUGHT A WIDE RANGE
OF STOCKS ANTICIPATING THAT THE GOVERNMENT'S BUDGET PROPOSAL WOULD CONTAIN
BENEFITS FOR BUSINESS IN KUALA LUMPUR STOCKS ENDED BROADLY HIGHER TAKING
THE MAIN INDEX UP 33 IN MODERATE TRADING BOLSTERED BY THE RETURN OF
FOREIGN INVESTORS AND BY CONTINUED SPECULATIVE BUYING

IN TAIPEI THE BENCHMARK INDEX ROSE SLIGHTLY MARKING THE FIRST UPTURN IN
THE PAST FIVE SESSIONS BUT LOSING ISSUES OUTNUMBERED WINNING ISSUES
DEALINGS REMAINED LACKLUSTER AMID THE CONSOLIDATION THAT HAS LASTED ALMOST
TWO WEEKS IN SEOUL PRICES DECLINED ON CONCERNS THAT THE SOUTH KOREAN
CENTRAL BANK WOULD DRAIN LIQUIDITY IN A MONETARY TIGHTENING TO FIGHT
INFLATIONARY PRESSURE THESE REPORTS WIPED OUT EARLY GAINS FOR STOCKS AND
PUSHED THEM INTO NEGATIVE TERRITORY IN WELLINGTON STOCKS JUMPED 21 IN
BUSY TRADING AS THE MARKET REBOUNDED AFTER A THREESESSION LOSING STREAK
BENEFITING FROM POSITIVE REPORTS ON NEW ZEALAND CORPORATE EARNINGS AND DEBT
RATINGS

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
9402240023 940224 TECHNOLOGY & SCIENCE 3DO TO OFFER STOCK TO
MANUFACTURERS WITH EACH SALE OF VIDEOGAME PLAYERS  BY JIM CARLTON
 STAFF REPORTER OF THE WALL STREET JOURNAL

THE REDWOOD CITY CALIF COMPANY PLANS TO OFFER THROUGH SEPT 30 TWO SHARES
OF ITS STOCK TO MANUFACTURERS FOR EACH INTERACTIVE MULTIPLAYER MACHINE THEY
SELL AT OR BELOW A NEW SUGGESTED PRICE OF 49995 A 29 REDUCTION FROM ITS
PREVIOUS PRICE OF ABOUT 700

BY GIVING UP ITS STOCK WHICH CLOSED YESTERDAY AT 2575 A SHARE 3DO IN
EFFECT IS OFFERING MANUFACTURERS REBATES OF ABOUT 50 ON EACH SALE THE
COMPANY SAID THE STOCK GIVEAWAY WOULD BE ACCOUNTED FOR AS AN EXPENSE BUT
ANALYSTS SAID IT IS A SHREWD MOVE BECAUSE 3DO DOESN'T HAVE TO COME UP WITH
ANY CASH AND AN ANTICIPATED UPSURGE IN SALES SHOULD ENTICE MORE SOFTWARE
DEVELOPERS TO WRITE GAMES FOR THE MACHINE ANALYSTS SAID THE GIVEWAYS
WOULDN'T GREATLY DILUTE THE STOCK

WHILE THE CDROM COMPACT DISK READONLYMEMORY PLAYER IS FAR MORE
POWERFUL THAN MANY COMPETITORS' OFFERINGS SALES HAVE BEEN HAMPERED BY THE
PLAYER'S HIGH PRICE AND ITS DEARTH OF GAMES WHILE THE COMPANY WOULDN'T
DISCLOSE FIGURES ANALYSTS ESTIMATE BETWEEN 15000 AND 25000 OF THE PLAYERS
HAVE BEEN SOLD IN STORES SINCE SHIPMENTS BEGAN LATE LAST YEAR LESS THAN
HALF WHAT THEY HAD PREDICTED 3DO OFFICIALS SAY THE SALES ARE ON TRACK WITH
THEIR OWN PROJECTIONS

THE SALES ARE ALSO A DROP IN THE BUCKET WHEN COMPARED WITH THE MILLIONS OF
GAME PLAYERS PRICED AT LESS THAN 200 SOLD BY HEAVYWEIGHT COMPETITORS LIKE
NINTENDO OF AMERICA INC A UNIT OF JAPAN'S NINTENDO CO AND SEGA OF
AMERICA INC A UNIT OF JAPAN'S SEGA ENTERPRISES LTD

IN A STATEMENT TRIP HAWKINS 3DO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER
SAID THE COMPANY HAD EXPECTED TO DROP THE PLAYER PRICES BELOW 500 THIS FALL
BUT MOVED UP THE DATE TO HEAD OFF EXPECTED COMPETITION FROM POWERFUL NEW
PLAYERS DUE OUT IN THE US NEXT YEAR FROM NINTENDO AND SEGA AMONG OTHERS

ALTHOUGH MATSUSHITA ALREADY HAS COMPELLING MOTIVATION TO SEE 3DO SUCCEED 
IT OWNS A 15 STAKE IN THE STARTUP ANALYSTS SAY THE STOCK GIVEAWAY
PROVIDES A GREATER PUSH THEY SAID THE KEY IS IN WHETHER MATSUSHITA WHICH
MARKETS THE INTERACTIVE MULTIPLAYER UNDER ITS PANASONIC BRAND NAME CAN
FOLLOW THROUGH WITH ITS OWN INCENTIVES FOR RETAILERS TO CARRY THE MACHINES

LEE ISGUR ANALYST WITH VOLPE WELTY & CO IN SAN FRANCISCO SAID THE PERIOD
THROUGH SEPTEMBER IS USUALLY THE SLOWEST OF THE YEAR FOR RETAILERS MR
ISGUR SAID MATSUSHITA MIGHT HAVE TO PROVIDE AN INCENTIVE SUCH AS DEFERRING
RETAILERS' PAYMENT ON SHIPPED GOODS TO GET THEM TO STOCK SHELVES NORMALLY
RETAILERS ARE BILLED BY MANUFACTURERS MONTHLY

MATSUSHITA OFFICIALS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT

BECAUSE 3DO WILL DEPEND ON ROYALTIES FROM GAMES AND OTHER PROGRAMS IT
LICENSES FOR ALMOST ALL OF ITS REVENUE DRAWING MORE DEVELOPERS IS CRUCIAL
3DO HAS ABOUT 20 SOFTWARE TITLES ON THE MARKET AND ABOUT 200 IN DEVELOPMENT
OR COMPLETED

WITH ANALYSTS LIKE STEVE ESKENAZI OF ALEX BROWN & SONS IN SAN FRANCISCO
FORECASTING THAT SALES COULD RISE TO 500000 OVER THE NEXT YEAR GAME
DEVELOPERS SAY THEY MIGHT INDEED START FOCUSING THEIR ATTENTION ON 3DO
HOWEVER THEY WILL BE LOOKING FOR SOLID GROWTH IN MONTHOVERMONTH SALES

OUR POSITION IS WAIT AND SEE SAID GREGORY FISCHBACH COCHAIRMAN AND
CHIEF EXECUTIVE OFFICER OF ACCLAIM ENTERTAINMENT INC A BIG GAME PUBLISHER
IN OYSTER BAY NY ADDED HENRY A KAPLAN CHIEF EXECUTIVE OF HI TECH
EXPRESSIONS INC A NEW YORK GAME MAKER FOR US IT'S NOT A QUESTION OF IF
BUT A QUESTION OF WHEN TO MAKE GAMES FOR 3DO AND ROBERT A KOTICK
CHAIRMAN AND CHIEF EXECUTIVE OF LOS ANGELESBASED ACTIVISION INC SAID HIS
COMPANY WOULD LIKELY START WRITING GAMES FOR 3DO ONCE IT HAS SOLD MORE THAN
250000 PLAYERS 9402240022 940224 SENATORS URGE AID FREEZE IN SPY
CASE  BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE ARREST OF THE HIGHESTRANKING US GOVERNMENT OFFICIAL
EVER ACCUSED OF SPYING SENT SHUDDERS THROUGH THE CAPITAL AND BROUGHT CRIES
IN THE SENATE FOR A HALT TO RUSSIAN AID

MEANWHILE THE CENTRAL INTELLIGENCE AGENCY CONTINUED TO ASSESS THE DAMAGE
ALLEGEDLY CAUSED BY ALDRICH H AMES THE CIA OFFICIAL WHO IS ACCUSED OF
GIVING THE KGB DETAILS OF SOME OF THE NATION'S MOSTSECRET SPY OPERATIONS
AMONG OTHER THINGS THE OFFICIALS TRIED TO DETERMINE THE EXTENT TO WHICH MR
AMES'S DISCLOSURES OVER THE PAST EIGHT YEARS HAD RISKED THE LIVES OF
INTELLIGENCE OPERATIVES

MR AMES FOR HIS PART REMAINED IN JAIL AND SAID THROUGH HIS
COURTAPPOINTED LAWYER WELLKNOWN TRIAL ATTORNEY PLATO CACHERIS THAT HE
WOULD PLEAD NOT GUILTY AND WASN'T BARGAINING WITH THE GOVERNMENT

SEN DENNIS DECONCINI THE ARIZONA DEMOCRAT WHO HEADS THE SENATE'S SELECT
COMMITTEE ON INTELLIGENCE CALLED FOR A 60DAY FREEZE ON THE DELIVERY OF
FURTHER AID TO MOSCOW UNTIL RUSSIAN LEADERS AGREE TO HELP THE US ASSESS
THE DAMAGE SENATE MINORITY LEADER BOB DOLE R KANSAS WHO SAID THE AMES
CASE CHALLENGES THE FOUNDATION OF OUR RELATIONSHIP WITH RUSSIA SAID THAT
IF PRESIDENT CLINTON DIDN'T USE HIS EXECUTIVE POWERS TO FREEZE THE AID
CONGRESS MIGHT DO IT FOR HIM HE ALSO CALLED FOR THE RUSSIANS TO HALT SPY
OPERATIONS IN THE US AND TO WITHDRAW FROM THE US ANY RUSSIAN DIPLOMATS
WHO DEALT WITH MR AMES

ASKED ABOUT THE SENATE PRESSURE PRESIDENT CLINTON SAID I THINK WE SHOULD
BE CAREFUL BEFORE WE MAKE SPECIFIC DETERMINATIONS ABOUT AID FLOWS A LOT OF
AID FLOWS FOR EXAMPLE ARE DIRECTLY TO INDIVIDUALS WHO ARE TRYING TO
PRIVATIZE THEIR BUSINESSES HAVING NOTHING TO DO WITH GOVERNMENT OR
GOVERNMENT POLICIES MR CLINTON WHO REPEATED AN EARLIER ASSESSMENT THAT
THE SPY CASE IS SERIOUS ADDED MOST OF OUR GOVERNMENT AID IS IN THE FORM
OF AID TO TAKE DOWN THE NUCLEAR WEAPONS AND I DON'T THINK ANYONE THINKS WE
SHOULD SLOW THAT UP

THE STATE DEPARTMENT SAID THAT IF RUSSIAN AID WERE FROZEN IT WOULD HOLD UP
ABOUT 17 BILLION OF DISBURSEMENTS PROMISED OR IN THE PIPELINE THE EXTENT
OF THE EFFECT OF THIS INCIDENT ON OUR RELATIONSHIP WITH RUSSIA WILL DEPEND
UPON RUSSIAN ACTIONS IN THE DAYS AHEAD SECRETARY OF STATE WARREN
CHRISTOPHER TOLD THE SENATE FOREIGN RELATIONS COMMITTEE YESTERDAY EVENTS
IN RUSSIA OVER THE PAST FEW WEEKS HAVE REVIVED OUR FEARS ABOUT THE FUTURE

BUT THE ADMINISTRATION WHICH UNTIL RECENTLY HAD VIEWED RUSSIA AS A
COMPARATIVE SUCCESS IN A MUDDLED FOREIGNPOLICY PORTFOLIO CLEARLY WAS
RATTLED THERE'S A FEELING OF ACUTE ANNOYANCE BORDERING ON OUTRAGE ONE
HIGHRANKING OFFICIAL SAID THIS SORT OF STUFF WASN'T SUPPOSED TO HAPPEN

FOR ITS PART THE RUSSIAN GOVERNMENT URGED THE US NOT TO ALLOW THE AMES
AFFAIR TO CAUSE A MAJOR POLITICAL RIFT BETWEEN THE TWO COUNTRIES IT WOULD
BE INAPPROPRIATE TO HYPE THIS CASE INTO A POLITICAL SCANDAL THE OFFICIAL
NEWS AGENCY ITARTASS COMMENTED YESTERDAY

RUSSIAN FOREIGN MINISTRY SPOKESMAN GRIGORY KARASIN TOLD ITARTASS THAT A
BALANCED AND QUIET APPROACH DEVOID OF EXCESSIVE POLITICAL EMOTIONS IS
NECESSARY AND THAT MANY QUESTIONS REMAINED TO BE CLARIFIED OFFICIALS AT THE
FOREIGN INTELLIGENCE SERVICE THE EXTERNAL BRANCH OF THE FORMER KGB
DECLINED TO COMMENT ON THE CASE BUT REPEATEDLY IN RECENT MONTHS
INTELLIGENCE OFFICIALS HAVE CHARGED THAT FOREIGN COUNTRIES ARE ENGAGED IN
SPYING ON RUSSIA

MEANWHILE THE US IS WAITING FOR MOSCOW TO RESPOND TO ITS REQUEST TO SEND
HOME THOSE INDIVIDUALS IN THE RUSSIAN EMBASSY WHO AIDED OR SUPPORTED MR
AMES'S SPYING SENIOR US OFFICIALS SAID YESTERDAY THAT THE ADMINISTRATION
HASN'T SET A DEADLINE BY WHICH IT WANTS THE RUSSIANS TO LEAVE HOWEVER THE
ADMINISTRATION CLEARLY IS LOOKING FOR ACTION WITHIN THE NEXT COUPLE OF DAYS

WE'VE ASKED THEM TO DO THE RIGHT THING BEFORE WE DO IT FOR THEM A SENIOR
US OFFICAL SAID

UNLIKE US AID TO ISRAEL WHICH ALSO HAS BEEN CAUGHT SPYING ON THE US
AID TO RUSSIA HAS A VERY FRAGILE DOMESTIC CONSTITUENCY SEN MITCH MCCONNELL
R KY RANKING MINORITY MEMBER OF THE FOREIGN OPERATIONS SUBCOMMITTEE OF
THE SENATE APPROPRIATIONS COMMITTEE SAID BIPARTISAN SUPPORT FOR AID TO
RUSSIA IS DWINDLING IT THE AMES CASE IS JUST ONE OF A SERIES OF MOVEMENTS
IN THE WRONG DIRECTION IT JUST LEADS ME TO QUESTION WHETHER WE OUGHT TO
SUPPLY ANYTHING TO RUSSIA NEXT YEAR

SEN DECONCINI AND THE CIA ADDED DETAILS TO THE SAGA OF MR AMES WHO WAS
BORN IN RIVER FALLS WIS IN 1941 HE JOINED THE CIA IN 1962 AS A TRAINEE
AFTER ATTENDING THE UNIVERSITY OF CHICAGO HE GRADUATED FROM GEORGE
WASHINGTON UNIVERSITY HERE IN 1967 WITH AN UNDERGRADUATE DEGREE IN HISTORY

MR CACHERIS SAYING HIS CLIENT WOULD PLEAD NOT GUILTY ADDED THAT WE HAVE
NOT DISCUSSED ANY DEALS WITH THE GOVERNMENT MR CACHERIS WAS APPOINTED BY
THE COURT TO REPRESENT MR AMES BECAUSE THE CIA AGENT'S FUNDS HAVE BEEN
FROZEN BY THE GOVERNMENT A COMBINED PRELIMINARY AND BOND HEARING FOR MR
AMES ORIGINALLY SCHEDULED FOR TOMORROW NOW IS PLANNED FOR TUESDAY IN
ALEXANDRIA VA

MR CACHERIS IS ONE OF WASHINGTON'S MOST CELEBRATED WHITECOLLAR DEFENSE
LAWYERS WHOSE CLIENTS HAVE INCLUDED FORMER NATIONAL SECURITY COUNCIL
STAFFER FAWN HALL SHEIK KAMAL ADHAM WHO WAS INDICTED IN THE BCCI CASE AND
THE LATE ATTORNEY GENERAL JOHN MITCHELL

MR AMES THE SON OF A CIA EMPLOYEE SPENT HIS ENTIRE CAREER IN THE AGENCY
COMING TO SPECIALIZE IN COUNTERINTELLIGENCE OPERATIONS AGAINST THE RUSSIANS
IN THE MID TO LATE 1980S A CRITICAL PERIOD AT THE END OF THE COLD WAR
ACCORDING TO THE FBI HIS SPY ACTIVITIES BEGAN IN 1985 AND CONTINUED UNTIL
EARLIER THIS WEEK WHEN HE WAS ARRESTED NEAR HIS HOME

IN AN ODD COINCIDENCE MR AMES'S FATHER WAS A SUBORDINATE OF JAMES JESUS
ANGLETON THE LEGENDARY CIA COUNTERINTELLIGENCE CHIEF MR ANGLETON WHO WAS
FORCED INTO RETIREMENT IN THE 1970S WAS RELENTLESS IN HIS PURSUIT OF A CIA
MOLE AN AGENCY OFFICIAL WHO WAS SECRETLY WORKING FOR THE SOVIETS MR
ANGLETON NEVER FOUND ONE BUT A DECADE AFTER HIS RETIREMENT ALDRICH AMES
WAS RECRUITED BY THE KGB ACCORDING TO THE FBI'S COURT FILING MR AMES IS
NOW THE HIGHESTRANKING CIA OFFICIAL EVER ACCUSED OF BEING TURNED BY THE
RUSSIANS

SINCE THE MID1980S ACCORDING TO CURRENT AND FORMER CIA OFFICIALS THE
AGENCY SUSPECTED THAT IT HAD A MOLE WHO HAD COMPROMISED THE IDENTITIES OF
SOVIET AGENTS AND REVEALED OTHER HIGHLY SENSITIVE INTELLIGENCE INFORMATION

AFTER NOTICING A NUMBER OF OPERATIONS GOING SOUR THE CIA DID AN ANALYTICAL
REVIEW TO DETERMINE HOW COME ALL THESE THINGS ARE GOING CRAZY ON US ONE
JUSTICE DEPARTMENT OFFICIAL SAID

SUSPICIONS WERE RAISED BY THE AMESES' SUDDEN WEALTH MANIFESTED IN THE CASH
PURCHASE OF A 540000 HOUSE AND A STRING OF UNEXPLAINED BANK DEPOSITS THE
SUDDEN APPEARANCE OF A RED JAGUAR IN THE PARKING LOT AT LANGLEY SPARKED
CURIOSITY ALTHOUGH A NUMBER OF OTHER CIA EMPLOYEES ALSO DRIVE LUXURY
FOREIGN AUTOMOBILES MR AMES'S EXPLANATION THAT HIS WIFE CAME FROM A
WEALTHY COLOMBIAN FAMILY SEEMED TO SATISFY HIS COLLEAGUES UNTIL FEDERAL
AUTHORITIES BEGAN FURTHER INVESTIGATIONS INTO MR AMES'S FINANCIAL DEALINGS
AND ACTIVITIES ABOUT TWO YEARS AGO

IN 1986 AND AGAIN IN 1991 ACCORDING TO SEN DECONCINI MR AMES PASSED
CIAADMINISTERED LIEDETECTOR TESTS WHICH ARE ROUTINE FOR ALL EMPLOYEES
SEN DECONCINI SAID HIS BRIEFINGS FROM CIA DIRECTOR JAMES WOOLSEY AND OTHER
OFFICIALS HAVE LED HIM TO SUSPECT THE WORST THAT THE LEAKAGE COMPROMISED
MAJOR US CODES AND OPERATIVES IN RUSSIA AND MIGHT HAVE CAUSED THE
EXECUTIONS OF SOME OF THE PEOPLE INVOLVED

ROBERT GATES WHO HEADED THE CIA FROM 1991 THROUGH 1993 WARNED THAT SEN
DECONCINI'S MOVE TO SUSPEND AID MIGHT BE A MISTAKE BECAUSE IT WOULD PUT THE
ENTIRE USRUSSIAN RELATIONSHIP AT RISK OVER THIS

HE ALSO WORRIED THAT TO DEMAND RUSSIAN COOPERATION COULD DO SOME ADDITIONAL
DAMAGE BECAUSE IT MIGHT BE ASKING MORE THAN YELTSIN CAN EXTRACT FROM THE
BUREAUCRACY AT THIS POINT

JOE DAVIDSON AND ELISABETH RUBENFIEN CONTRIBUTED TO THIS ARTICLE
9402240021 940224 WEDNESDAY'S MARKETS BOND STOCK PRICES DROP 
DOLLAR RISES  GREENSPAN TESTIMONY IS CITED IN WEAK SALE OF
TWOYEAR NOTES  BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL
STREET JOURNAL

BOND PRICES FELL AMID A WEAK GOVERNMENT AUCTION OF TWOYEAR NOTES STOCKS
FOLLOWED BONDS LOWER AND THE DOLLAR ROSE

THE DOW JONES INDUSTRIAL AVERAGE SANK 1998 POINTS TO 389168 STANDARD &
POOR'S 500STOCK INDEX FELL 077 TO 47069 AND THE NASDAQ COMPOSITE INDEX
LOST 204 TO 78911

ANALYSTS SAID FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN'S TESTIMONY
BEFORE CONGRESS ON TUESDAY HAUNTED THE TWOYEAR NOTE AUCTION THOUGH TRADERS
WERE ENCOURAGED AT FIRST BY MR GREENSPAN'S REMARKS THE FED CHIEF'S
COMMENTS WERE SEEN AS RENEWING UNCERTAINTY ABOUT THE TIMING OF ANOTHER BOOST
IN SHORTTERM INTEREST RATES THE SALE OF 17 BILLION IN TWOYEAR NOTES CAME
IN AT A YIELD OF 466 ABOVE THE EXPECTED 464 TO 465

WE HAD A VERY SLOPPY TWOYEAR NOTE AUCTION AS TRADERS ON THE SHORTEND ARE
BEING VERY CAUTIOUS AND BUILDING IN THE POSSIBILITY OF ANOTHER TIGHTENING
SAID DONALD MAUDE CHIEF US FIXED INCOME STRATEGIST AT SCOTIA MCLEOD
USA AND THAT SPILLED OVER TO THE LONG END

INDEED THE TREASURY'S BENCHMARK 30YEAR BOND FELL 5/8POINT TO YIELD 665
THE HIGHEST RATE SINCE JULY MR MAUDE SAID SOME TRADERS WORRY THAT THE FED
MAY KNOW MORE ABOUT THE DEGREE OF CURRENT INFLATIONARY PRESSURES THAN IT
REVEALS THE REASON FOR THE LAST TIGHTENING WAS THE CONCERN ABOUT
INFLATION MR MAUDE SAID A LOT OF PEOPLE ARE SAYING THAT IF THE FED
TIGHTENED WHAT DOES IT SEE THAT WE DON'T

HE BELIEVES THE SELLOFF IN LONGTERM TREASURYS IS OVERDONE AND THAT A
VIGOROUS REBOUND IS POSSIBLE BUT HE CAUTIONS THAT A CATALYST IS NEEDED TO
BRIGHTEN THE OUTLOOK OF BOND INVESTORS SUCH A CATALYST COULD BE A WEAK
READING TODAY ON DURABLEGOODS ORDERS FOR JANUARY

WE'VE HAD SUCH STRONG GAINS IN RECENT MONTHS THAT IF WE GET A WEAK NUMBER
IT COULD ALLEVIATE SOME FEARS THAT THE ECONOMY IS GROWING TOO FAST HE
SAID

STOCKS SUFFERED FROM THE BOND MARKET'S WOES INTERESTRATE SENSITIVE STOCKS
SUCH AS UTILITIES FELL THE DOW JONES UTILITY AVERAGE LOST 118 TO 21059
THE UTILITY AVERAGE OFTEN REGARDED AS A HARBINGER OF FUTURE STOCK AND
BOND MARKET ACTIVITY HAS FALLEN 9 SINCE DEC 28 ECONOMICALLY SENSITIVE
STOCKS LONG THE MARKET'S LEADERS ALSO SLID

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 025 TO 11582

IN MAJOR MARKET ACTION

STOCK PRICES FELL VOLUME TOTALED 3099 MILLION SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1165 ISSUES FELL AND 951 ROSE

BOND PRICES TUMBLED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN
HALF A POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 664

THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17284
MARKS AND 10575 YEN COMPARED WITH 17235 MARKS AND 10565 YEN TUESDAY
9402240020 940224 WHO'S NEWS DEERE & CO

DEERE & CO MOLINE ILL WILLIAM A SCHREYER CHAIRMAN EMERITUS OF
MERRILL LYNCH & CO WAS NAMED TO THE BOARD OF THE CONSTRUCTION AND
AGRICULTURALEQUIPMENT CONCERN MR SCHREYER 66 YEARS OLD SERVED AS
MERRILL LYNCH'S CHAIRMAN FOR EIGHT YEARS UNTIL LAST YEAR AND AS THE
COMPANY'S CHIEF EXECUTIVE OFFICER FOR EIGHT YEARS UNTIL 1992 THE ADDITION
OF MR SCHREYER BRINGS THE TOTAL NUMBER OF DIRECTORS TO 10 9402240019
940224 WHO'S NEWS FLORIDA WEST AIRLINES

FLORIDA WEST AIRLINES MIAMI DARNELL H MARTENS 40 YEARS OLD PRESIDENT
OF CINCINNATI AVIATION CONSULTING FIRM THOMASON RICHLAND & MARTENS WAS
ELECTED TO THE BOARD OF THIS AIRLINE HIS ELECTION EXPANDS THE BOARD TO FOUR
MEMBERS 9402240018 940224 POLITICS & POLICY GOVERNMENT SAYS BUDGET
SURPLUS FELL IN JANUARY  BY LUCINDA HARPER STAFF REPORTER OF THE
WALL STREET JOURNAL

WASHINGTON THE FEDERAL GOVERNMENT REPORTED A BUDGET SURPLUS OF 1561
BILLION IN JANUARY DOWN FROM A 2982 BILLION SURPLUS IN JANUARY 1993
THERE WAS A 825 BILLION DEFICIT IN DECEMBER

ANALYSTS SAID THE YEARTOYEAR DROP REFLECTS A CALENDAR QUIRK IN WHICH
SOCIAL SECURITY BENEFITS FOR JANUARY 1993 WERE ACTUALLY PAID OUT IN DECEMBER
1992 WHICH HELPED TO FATTEN THE JANUARY SURPLUS LAST YEAR

IN ITS MONTHLY STATEMENT THE TREASURY SAID RECEIPTS TOTALED 12297 BILLION
LAST MONTH COMPARED WITH 11271 BILLION A YEAR EARLIER AND 12542 BILLION
IN THE PREVIOUS MONTH

OUTLAYS TOTALED 10736 BILLION LAST MONTH COMPARED WITH 8290 BILLION A
YEAR EARLIER AND 13367 BILLION THE MONTH BEFORE

FOR THE FIRST FOUR MONTHS OF THE FISCAL YEAR WHICH STARTED OCT 1 THE
TOTAL DEFICIT WAS 7644 BILLION COMPARED WITH 9065 BILLION DURING THE
YEAREARLIER PERIOD

KATHLEEN STEPHANSEN FEDERAL BUDGET ANALYST AT DONALDSON LUFKIN & JENRETTE
SAYS THE DEFICIT OUTLOOK IS VERY ENCOURAGING SHE SAID THAT THE ECONOMIC
RECOVERY IS PLAYING A PART SINCE RECEIPTS ARE RISING AND UNEMPLOYMENT
OUTLAYS ARE DECLINING BUT THAT DEFICIT REDUCTION LAWS ARE ALSO RESPONSIBLE

THE GOVERNMENT PAID 1790 BILLION IN INTEREST LAST MONTH ON THE FEDERAL
DEBT DOWN FROM 5270 BILLION IN DECEMBER LAST JANUARY THE GOVERNMENT
PAID 1806 BILLION ON THE DEBT

RECEIPTS FROM RESOLUTION TRUST CORP TOTALED 74 MILLION LAST MONTH AS IT
ONCE AGAIN BEGAN SELLING OFF ASSETS OF FAILED THRIFTS UNDER RENEWED
AUTHORITY FROM CONGRESS IN DECEMBER THE GOVERNMENT MADE OUTLAYS FOR THE
RTC TOTALING 247 BILLION

HERE IS A SUMMARY OF THE TREASURY'S REPORT IN BILLIONS OF DOLLARS FOR THE
FOUR MONTHS ENDED JAN 31 1994 9402240017 940224 FRANKLIN OPHTHALMIC
ACQUISITION

HAYWARD CALIF FRANKLIN OPHTHALMIC INSTRUMENTS CO SIGNED A LETTER OF
INTENT TO ACQUIRE MIDWEST OPHTHALMIC INSTRUMENTS OF ROMEOVILLE ILL

THE COMPANY SAID IT WILL PURCHASE ALL OF THE STOCK OUTSTANDING OF MIDWEST
OPHTHALMIC FOR A COMBINATION OF CASH AND FRANKLIN COMMON SHARES

FRANKLIN SAID MIDWEST OPHTHALMIC REPORTED REVENUE OF ABOUT 8 MILLION FOR
ITS FISCAL YEAR ENDED OCT 31 9402240016 940224 LETTERS TO THE EDITOR 
THE HEALTH PLAN'S BUILTIN DEFICIT

WILFRIED PREWO'S FEB 1 EDITORIALPAGE ARTICLE GERMANY IS NOT A MODEL
EXPOSES THE LEASTUNDERSTOOD FLAW IN PRESIDENT CLINTON'S DISASTROUS HEALTH
PLAN ITS BUILTIN DEFICIT GERMANS PAY A 134 PAYROLL TAX TO SUPPORT A
HEALTH CARE SYSTEM THAT COSTS 106 OF GDP YET THE CLINTON ADMINISTRATION
CLAIMS THAT MANDATED PREMIUM PAYMENTS BELOW 8 OF PAYROLL CAN FINANCE A
SYSTEM THAT SPENDS 14 OF GDP AND IS SET TO RISE TO 17 OR 18

NO CALCULATOR IN THE WORLD CAN MAKE THE CLINTON NUMBERS ADD UP NOR HAS THE
ADMINISTRATION ATTEMPTED IT THE JOINT ECONOMIC COMMITTEE/GOP STAFF RELEASED
A STUDY A BILLION DOLLARS A DAY THE FINANCING SHORTFALL IN PRESIDENT
CLINTON'S HEALTH CARE PROPOSAL ON JAN 24 AND IT REMAINS THE ONLY STUDY
THAT ADDS UP THE FINANCING FROM ALL SOURCES AND COMPARES THE TOTAL WITH
EXPENDITURE ESTIMATES EVEN WHEN THE ADMINISTRATION'S OWN COST ESTIMATES ARE
USED THE FUNDS AVAILABLE TO COVER THE OUTLAYS FALL 918 BILLION SHORT
BETWEEN 1995 AND 2000 THIS DEFICIT IS TIMED TO EXPLODE SOON AFTER THE
PLAN'S INAUGURATION

THE JEC/GOP STUDY ALSO PROVIDES MORE REALISTIC COST ESTIMATES AND FINDS A
19952000 SHORTFALL OF 18 TRILLION AND A WHOPPING 33 TRILLION IF
FORTUNE 500 COVERAGE WERE EXTENDED TO EVERY AMERICAN BUSINESS AND
INDIVIDUALS WILL HAVE TO PAY 17 OF PAYROLL IF THE GOVERNMENT TRIES TO MEET
THE MIDDLING ESTIMATE OF THE HSA GAP 18 TRILLION BY PAYROLL PREMIUMS
ALONE UNDER THE CLINTON BILL AN ECONOMYTHREATENING CONCOCTION OF HIGHER
TAXES HUGE DEFICITS AND RATIONING LOOM 9402240015 940224 VIRGINIA SENATE
PASSES BILL

THE VIRGINIA SENATE YESTERDAY PASSED A BILL THAT ENDS RESTRICTIONS ON
INTERSTATE BANKING ACQUISITIONS IN THAT STATE

THE MEASURE WHICH ALREADY PASSED THE HOUSE AND NOW AWAITS THE GOVERNOR'S
SIGNATURE WOULD END VIRGINIA'S PARTICIPATION IN THE SOCALLED SOUTHEAST
COMPACT AS OF JULY 1 ADOPTED DURING THE MID1980S BY MANY STATES IN THE
REGION THE COMPACT IS A COLLECTION OF RECIPROCAL AGREEMENTS PERMITTING BANK
ACQUISITIONS WITHIN THE SOUTHEAST BUT SEALING OFF THE REGION FROM TAKEOVERS
BY OUTSIDE INSTITUTIONS

VIRGINIA ISN'T THE ONLY PARTY ITCHING TO GET OUT OF THE COMPACT SIMILAR
LEGISLATION IS PENDING IN THREE OTHER STATES FLORIDA GEORGIA AND SOUTH
CAROLINA NORTH CAROLINA VOTED LAST YEAR TO PULL OUT EFFECTIVE IN 1996 AND
TENNESSEE AND LOUISIANA QUIT THE AGREEMENT IN EARLIER YEARS THE BREAKUP OF
THE COMPACT COULD FREE UP THE REGION'S BANKS TO MERGE WITH OUTSIDERS IT
WOULD ALSO MAKE SOME SOUTHEASTERN BANKS POTENTIAL TAKEOVER TARGETS

THE SOUTHEAST COMPACT WAS DESIGNED TO PREVENT SOUTHERN INSTITUTIONS FROM
BEING ENGULFED BY LARGER BANKS OUTSIDE THE REGION SINCE ITS ENACTMENT FIVE
DIFFERENT SOUTHEASTERN BANKS HAVE EMERGED AMONG THE NATION'S TOP 25 IN SIZE
BUT NOW THE COMPACT IS CRAMPING THE EXPANSION POTENTIAL OF SUCH BANKING
GIANTS AS NATIONSBANK CORP AND FIRST UNION CORP BOTH BASED IN CHARLOTTE
NC

DESPITE PASSAGE OF THE VIRGINIA LEGISLATION WHICH SAW NO OPPOSITION AND
ISN'T EXPECTED TO BE VETOED BANKS OPERATING IN VIRGINIA CAN'T NECESSARILY
MAKE UNLIMITED ACQUISITIONS YET BANKS WITH OFFICES IN OTHER PARTICIPATING
STATES MAY HAVE TO DELAY OUTOFREGION EXPANSION PLANS UNTIL THOSE STATES
PASS INTERSTATE ACQUISITION LAWS AS WELL 9402240014 940224 REVIEW &
OUTLOOK EDITORIAL ASIDES TOMBSTONE EPITAPH

WYATT EARP'S GUN CONTROL WAS OVERRULED YESTERDAY AS THE CITY COUNCIL IN
TOMBSTONE ARIZ REPEALED ITS BAN ON CARRYING HANDGUNS IN PUBLIC SOME
RESIDENTS BACKED BY THE LEGAL ARM OF THE NATIONAL RIFLE ASSOCIATION HAD
SUED TO OVERTURN A 1977 ORDINANCE

EARLIER IN 1881 THE STORIED GUNFIGHT AT THE OK CORRAL ERUPTED WHEN COWBOYS
OF THE CLANTON GANG REFUSED TO DISARM THE EARP BROTHERS AND DOC HOLLIDAY
KILLED THREE COWBOYS IN 30 SECONDS THE COPS WERE SUPPORTED THE TOMBSTONE
EPITAPH REPORTED THE NEXT DAY BY THE FEELING AMONG THE BEST CLASS OF OUR
CITIZENS 9402240013 940224 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

AMERICAN EAGLE GROUP INC AN INITIAL OFFERING OF 3750000 COMMON SHARES
WITH AN OVERALLOTMENT OPTION FOR 562000 ADDITIONAL SHARES VIA CS FIRST
BOSTON

BELIZE HOLDINGS INC AN OFFERING OF 24 MILLION COMMON SHARES WITH AN
OVERALLOTMENT OPTION OF 900000 SHARES VIA MERRILL LYNCH & CO

CHRONIMED INC AN OFFERING OF 1668000 COMMON SHARES VIA HAMBRECHT &
QUIST INC AND DAIN BOSWORTH INC

IMC FERTILIZER GROUP INC AN OFFERING OF FOUR MILLION COMMON SHARES WITH
AN OVERALLOTMENT OPTION FOR 600000 ADDITIONAL SHARES VIA LEHMAN BROTHERS
DONALDSON LUFKIN & JENRETTE SECURITIES CORP LAZARD FRERES & CO AND JP
MORGAN SECURITIES INC 9402240011 940224 BUSINESS BRIEF ANADARKO
PETROLEUM CORP DISCOVERY WELL IS COMPLETED IN SAHARA DESERT OF ALGERIA

ANADARKO PETROLEUM CORP SAID A UNIT COMPLETED A DISCOVERY OIL AND
NATURALGAS WELL IN THE SAHARA DESERT OF ALGERIA

THE HOUSTON OIL AND NATURALGAS EXPLORATION COMPANY SAID THE EL MERK EAST
NO 1 WELL FLOWED ABOUT 8100 BARRELS OF OIL AND 825 MILLION CUBIC FEET OF
GAS A DAY FROM FOUR ZONES AN ANADARKO SPOKESMAN SAID THE DEPTHS OF THOSE
ZONES WERE CONFIDENTIAL

ANADARKO SAID THE WELL WAS DRILLED TO A DEPTH OF 14859 FEET

ANADARKO PETROLEUM SAID ITS ANADARKO ALGERIA CORP OPERATES THE WELL AND
OWNS A 50 INTEREST A UNIT OF LASMO PLC OF THE UK AND A UNIT OF MAERSK
OLIE OG GAS AS OF DENMARK EACH OWN A 25 INTEREST

ANADARKO SAID ITS UNIT HAS A PRODUCTIONSHARING AGREEMENT WITH SONATRACH
THE ALGERIAN OIL AND GAS COMPANY THAT OWNS 102 OF ANADARKO PETROLEUM'S
COMMON STOCK 9402240009 940224 INSILCO EXPECTS WIDER NET LOSS RISE IN
SALES FOR FOURTH PERIOD

DUBLIN OHIO INSILCO CORP WHICH EMERGED FROM CHAPTER 11 BANKRUPTCY CODE
PROTECTION IN APRIL 1993 EXPECTS A WIDER FOURTHQUARTER NET LOSS BUT
INCREASED SALES AND CASH FLOW SAID CHIEF EXECUTIVE OFFICER ROBERT L
SMIALEK

EXCLUDING REORGANIZATION ITEMS DISCONTINUED OPERATIONS AND ADJUSTMENTS FOR
FRESHSTART ACCOUNTING INSILCO WILL REPORT FOURTHQUARTER EARNINGS OF 27
MILLION TO 33 MILLION COMPARED WITH 500000 ON THE SAME BASIS IN THE
YEARAGO PERIOD

SALES FOR THE THREE MONTHS ROSE 7 TO ABOUT 147 MILLION FROM 137 MILLION
IN 1992 BOOSTED BY STRONG PERFORMANCES FROM INSILCO'S TECHNOLOGY AND METALS
GROUPS WHICH PRODUCE THE COMPANY'S TELECOMMUNICATIONS CABLES AND AUTOMOTIVE
PARTS

ESTIMATED NET INCOME FOR THE YEAR IS ABOUT 402 MILLION COMPARED WITH A LOSS
OF 313 MILLION IN 1992 ANNUAL 1993 INCOME EXCLUDING REORGANIZATION ITEMS
DISCONTINUED OPERATIONS AND ADJUSTMENTS FOR FRESHSTART ACCOUNTING WILL BE
ABOUT 9 MILLION TO 92 MILLION DOWN FROM 95 MILLION A YEAR EARLIER DUE
MOSTLY TO HIGHER INTEREST COSTS MR SMIALEK SAID

THE COMPANY PLANS TO SELL SEVERAL DIVISIONS BY THE END OF THE THIRD QUARTER
IN AN ATTEMPT TO GENERATE CASH FLOW AND REFOCUS ON MORE PROFITABLE NICHE
INDUSTRIES MR SMIALEK SAID THE TARGETED DIVISIONS INCLUDE INSILCO'S
ROLODEX OFFICE SUPPLY DIVISION ITS CURTIS MANUFACTURING DIVISION AND ITS
SINCLAIR PAINT DIVISION 9402240008 940224 S&P 500 TO REMOVE COMPANY

NEW YORK STANDARD & POOR'S CORP SAID IT WILL REMOVE CNA FINANCIAL CORP
FROM THE S&P 500STOCK INDEX EFFECTIVE WITH THE CLOSE OF TRADING MARCH 1 AS
PREVIOUSLY REPORTED BANK HOLDING COMPANY KEYCORP WILL BE ADDED FOLLOWING
ITS MERGER WITH SOCIETY CORP

CNA FAILS TO MEET THE S&P 500 INDEX CRITERIA FOR BROAD OWNERSHIP AND
LIQUIDITY S&P SAID CURRENTLY 83 OF CNA'S COMMON SHARES ARE HELD BY LOWES
CORP IN ADDITION CNA'S 12MONTH LIQUIDITY RATIO 008 IS BY FAR
THE LOWEST OF ANY COMPANY IN THE S&P 500 S&P SAID

JB HUNT TRANSPORT SERVICES INC WILL REPLACE KEYCORP IN THE S&P MIDCAP 400
INDEX ALSO AFTER THE CLOSE OF TRADING MARCH 1 JB HUNT LOWELL ARK IS
A DIVERSIFIED TRANSPORTATION COMPANY 9402240007 940224 LETTERS TO THE
EDITOR BACK TO SCHOOL VIA CABLE TV

YOUR PAGEONE ARTICLE BARNEY & FRIENDS PUBLIC TV PREPARES FOR IMAGE
TRANSPLANT TO JUSTIFY EXISTENCE JAN 13 REPORTED THAT CABLE CHANNELS SUCH
AS BRAVO DISCOVERY AND ARTS & ENTERTAINMENT HAVE ENCROACHED ON PUBLIC TV'S
DISTINCTIVE CHOICE BY ROUTINELY OFFERING CABLE SUBSCRIBERS THE SORT OF
CULTURAL FARE AND DOCUMENTARIES THAT ONCE WERE THE SOLE PROVINCE OF PBS
BUT THE ARTICLE WHICH SUGGESTS THAT THE ANSWER TO PUBLIC TV'S MONETARY
CRISIS COULD BE IN DEVELOPING EDUCATION PROGRAMMING IMPLIES THAT THERE'S AN
UNMET NEED FOR EDUCATION PROGRAMMING AND OVERLOOKS THE SIGNIFICANT
ACCOMPLISHMENTS THE CABLE INDUSTRY HAS ACHIEVED IN INCREASING UNIVERSAL
ACCESS TO EDUCATION

PRIVATE INITIATIVES SUCH AS CABLE IN THE CLASSROOM A CONSORTIUM OF
EDUCATIONAL PROGRAMS PROVIDED BY CABLE PROGRAMMERS AND MIND EXTENSION
UNIVERSITY THE 24HOUR CABLE EDUCATION NETWORK HAVE BEEN OFFERING CABLE
SUBSCRIBERS A CHOICE OF HIGHSCHOOL COURSES COLLEGE AND GRADUATEDEGREE
PROGRAMS AND NONCREDIT COURSES FOR PERSONAL GROWTH AND PROFESSIONAL
DEVELOPMENT FOR MANY YEARS

WHEN CREATED 25 YEARS AGO THE PUBLIC BROADCASTING SYSTEM FILLED A NEED THAT
WAS UNMET BY ANY OTHER SOURCE NOW IN AN AGE OF 500 CHANNELS PRIVATELY
HELD CABLE NETWORKS OFFER THE RANGE AND QUALITY OF PROGRAMMING ONCE THE
EXCLUSIVE PURVIEW OF PBS WITHOUT THE ALLOCATIONS OF PUBLIC FUNDS AS MUCH
AS 275 MILLION LAST YEAR

YOU REPEAT INCOMING PBS PRESIDENT ERVIN DUGGAN'S UNSUPPORTED CHARGE THAT 12
YEARS OF TIGHTFISTED REPUBLICAN ADMINISTRATIONS IN WASHINGTON WERE
RESPONSIBLE FOR THE NETWORK'S FINANCIAL WOES TO THE CONTRARY PBS WAS NOT
FORCED TO TAKE IN LAUNDRY AND THERE WASN'T ANY PENNYPINCHING

IN FACT ANNUAL APPROPRIATIONS TO THE CORPORATION FOR PUBLIC BROADCASTING
HAVE INCREASED FROM ABOUT 140 MILLION IN 1983 TO SOME 312 MILLION FOR
1996 ABOUT DOUBLING DURING THE REAGANBUSH YEARS

INDEED PRESIDENT CLINTON PROMISED TO FREEZE FEDERAL SPENDING ON PUBLIC
BROADCASTING DURING THE 1992 CAMPAIGN HE TOLD BRIAN LAMB ON A JULY 26
1992 CSPAN BROADCAST I DON'T KNOW THAT WE HAVE TO SPEND MORE MONEY ON IT
NOW WE HAVE A PRETTY VITAL NETWORK OF PUBLIC TELEVISION AND IN THE NEXT
FEW YEARS WE HAVE TO FOCUS MOST OF OUR INCREASED INVESTMENT ON INVESTMENT
ON JUST THAT ON THOSE THINGS WHICH WILL GENERATE MORE WEALTH FOR THE UNITED
STATES 9402240006 940224 WHO'S NEWS ORGANOGENESIS INC

ORGANOGENESIS INC CANTON MASS DAVID T ROVEE 54 YEARS OLD WAS
NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF THIS
BIOTECHNOLOGY COMPANY MR ROVEE WHO HAD BEEN VICE PRESIDENT FOR RESEARCH
AND DEVELOPMENT SUCCEEDS THOMAS M TULLY 48 WHO RESIGNED TO PURSUE OTHER
OPPORTUNITIES MR ROVEE WAS ALSO NAMED CHIEF SCIENTIFIC OFFICER ALSO
MICHAEL T PIENIAZEK CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDED POST
OF EXECUTIVE VICE PRESIDENT 9402240005 940224 INTERNATIONAL CHINA'S
NEW CURRENCY EXCHANGE CENTER MAY CREATE HAVOC FOR FOREIGN CONCERNS 
 BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL

SHANGHAI IT IS ABOUT TO GET A LOT MORE DIFFICULT FOR FOREIGN BUSINESSES
IN CHINA TO REPATRIATE THEIR PROFITS

IN EARLY APRIL THE BEIJING GOVERNMENT PLANS TO REPLACE ITS ARRAY OF SWAP
MARKETS ACROSS THE COUNTRY WITH A NATIONAL INTERBANK CURRENCY EXCHANGE
CENTER BASED IN SHANGHAI CHINESE BANKERS AND FOREIGN ANALYSTS SAY THE NEW
FOREIGN EXCHANGE SYSTEM WILL ENABLE FINANCIAL MARKETS TO OPERATE MORE
EFFICIENTLY AND WILL LAY THE FOUNDATION FOR FULL CONVERTIBILITY OF THE
CHINESE YUAN INTO DOLLARS AND OTHER HARD CURRENCIES

THOSE ARE LONGTERM GOALS HOWEVER IN THE SHORT RUN THE REFORM IS LIKELY
TO CAUSE HEADACHES FOR MANY FOREIGN COMPANIES BASED IN CHINA AS WELL AS
FOR SOME CHINESE COMPANIES ENGAGED IN FOREIGN TRADE

THE PEOPLE'S BANK OF CHINA THE COUNTRY'S CENTRAL BANK FOR EXAMPLE IS
EXPECTED TO TIGHTEN RESTRICTIONS ON WHICH COMPANIES CAN CONVERT YUAN AND IN
WHAT QUANTITY THEY CAN DO SO THE BANK ALSO INTENDS TO SCRUTINIZE EVERY
TRANSACTION TO DETERMINE IF IT ADHERES TO THE BUSINESS CHARTER NEGOTIATED BY
THE COMPANY AND THE GOVERNMENT ACCORDING TO PEOPLE FAMILIAR WITH THE NEW
EXCHANGE SYSTEM

BEIJING WILL DIRECTLY MANAGE THE OPERATION THE TRANSACTIONS WILL HAVE TO
BE MORE CLOSELY MATCHED TO POLICY SAYS MAO YINGLIANG PRESIDENT OF THE
SHANGHAI BRANCH OF THE PEOPLE'S BANK ACCESS TO FOREIGN CURRENCY WILL
BECOME MORE STANDARDIZED HE ADDS

CREATION OF AN INTERBANK CURRENCY MARKET IS A KEY PART OF CHINA'S PLAN TO
OVERHAUL ITS FINANCIAL SYSTEM THE FIRST STEP WAS ELIMINATION OF THE
COUNTRY'S DUALEXCHANGE RATE ON JAN 1 BUT ANALYSTS SAY A RANGE OF OTHER
LONGDEBATED CHANGES INCLUDING THE ESTABLISHMENT OF A WESTERNSTYLE CENTRAL
BANKING SYSTEM AND THE EXPANSION OF CAPITAL MARKETS ARE LIKELY TO BE PHASED
IN MORE SLOWLY THAN ORIGINALLY ENVISIONED INDEED THE LAUNCH OF THE NEW
FOREIGN EXCHANGE SYSTEM HAS BEEN DELAYED FOR THREE MONTHS BY INDECISION OVER
ITS ACCESSIBILITY AND BY GLITCHES IN SETTING UP A SIXCITY COMPUTER LINK

THE NEW EXCHANGE SYSTEM WILL FULFILL A REQUIREMENT OF THE GENERAL AGREEMENTS
ON TARIFFS AND TRADE WHICH GOVERNS MOST WORLD TRADE BY SETTING UP A
FRAMEWORK FOR THE YUAN'S EVENTUAL CONVERSION ITS IMMEDIATE IMPACT WILL BE
TO CONSOLIDATE CONTROL OF FOREIGN EXCHANGE IN THE HANDS OF CENTRAL PLANNERS
THE CHANGE COMES DURING A CAMPAIGN TO REVERSE THE COUNTRY'S SOARING TRADE
DEFICIT AND STEM THE FLIGHT OF CAPITAL

UNDER THE NEW WESTERNSTYLE SYSTEM DESIGNATED CHINESE BANKS WILL HANDLE ALL
CURRENCY TRADING THE PEOPLE'S BANK WILL LIMIT THE VOLUME OF TRANSACTIONS
AND WILL INTERVENE ON THE MARKET WHENEVER NECESSARY TO KEEP THE EXCHANGE
RATE OF THE YUAN WITHIN A NARROW RANGE AGAINST FOREIGN CURRENCIES MR MAO
SAYS

ACCESS TO THE MARKET TAKES ON PARTICULAR IMPORTANCE IN LIGHT OF THE RECENT
WAVE OF INVESTMENT BY FOREIGN COMPANIES HOPING TO CASH IN ON SALES TO THE
CHINESE SUCH COMPANIES WANT TO BE ABLE TO CONVERT CHINESE YUAN SO THAT THEY
CAN REPATRIATE THEIR PROFITS

CHINA THEORETICALLY REQUIRES ALL FOREIGNFUNDED COMPANIES TO BALANCE
FOREIGN EXCHANGE MEANING THEY SHOULD NOT CONTRIBUTE TO A NET OUTFLOW OF
HARD CURRENCY BUT MANY COMPANIES HAVE FOUND THE EXISTING SWAP MARKET SYSTEM
RELATIVELY FLEXIBLE IN PRACTICE ALLOWING THEM TO TRADE CHINESE CURRENCY FOR
FOREIGN EXCHANGE WELL BEFORE THEY MEET TARGETS FOR EARNING HARD CURRENCY
THROUGH EXPORTS

MANY OF THE FOREIGN COMPANIES ARE CONCERNED ABOUT HOW THE NEW SYSTEM WILL
IMPACT THEIR BUSINESS SAYS LAI CHISUN CHIEF REPRESENTATIVE OF MOTOROLA
INC'S MOTOROLA CHINA INC WE GET THE IMPRESSION THAT THE CHINESE SEE THIS
AS AN ENFORCEMENT MECHANISM FOR CLAMPING DOWN ON THE EXPORT OF HARD
CURRENCY

MOTOROLA'S TIANJINBASED MANUFACTURING OPERATION DEPENDS HEAVILY ON IMPORTS
OF RAW MATERIALS IT SELLS FINISHED GOODS PRIMARILY TO THE CHINA MARKET
MAKING CONVERSION OF YUANDENOMINATED PROFITS A NECESSITY TO DATE MR LAI
SAYS THE COMPANY HAS HAD LIBERAL ACCESS TO SWAP MARKETS

HE SAYS GOVERNMENT OFFICIALS HAVE FAILED TO PROVIDE CONCRETE DETAILS ON HOW
QUICKLY HIS COMPANY WILL BE REQUIRED TO BALANCE ITS CURRENCY EARNINGS A
PROCESS THAT HE SAID WILL TAKE AT LEAST SEVERAL YEARS MANUFACTURING
OPERATIONS IN CHINA TYPICALLY SPEND MORE HARD CURRENCY THAN THEY EARN IN THE
INITIAL STAGES OF OPERATIONS BECAUSE THE OPERATIONS OFTEN HAVE TO IMPORT
MACHINERY AND RAW MATERIALS 9402240003 940224 BELL ATLANTIC'S PACT TO
ACQUIRE TCI COLLAPSES AMID DISPUTE OVER PRICE  CABLE RATE CUT 
ORDERED BY FCC WAS FINAL STRAW  BY WALL STREET JOURNAL REPORTERS
JOHNNIE L ROBERTS JOHN J KELLER LESLIE CAULEY AND MARK ROBICHAUX

NEW YORK BELL ATLANTIC CORP'S HISTORIC PACT TO ACQUIRE CABLETELEVISION
GIANT TELECOMMUNICATIONS INC COLLAPSED LATE YESTERDAY A STUNNING SETBACK
FOR THE TWO COMPANIES THAT WERE SUPPOSED TO LEAD THE RACE TO ENTER THE
INTERACTIVE AGE

THE TWO COMPANIES EXPRESSED VIRTUALLY NO HOPE OF RESUMING THEIR EFFORTS TO
MERGE AND BELL ATLANTIC THE BIG REGIONAL TELEPHONE COMPANY ALL BUT RULED
OUT THE NOTION OF MOUNTING A NEW ACQUISITION APPROACHING TCI'S SCALE THE
ABRUPT SCUTTLING MAY CAST A CLOUD OVER THE WHOLESALE RUSH TO WIRE UP THE
NATION FOR THE FABLED INFORMATION HIGHWAY AND IS LIKELY TO THRUST A SPATE OF
OTHER PENDING DEALS INTO UNCERTAINTY

IN PREPARED STATEMENTS BELL ATLANTIC AND TCI BLAMED A NEW FEDERAL ROLLBACK
IN CABLE RATES AND THE UNSETTLED REGULATORY CLIMATE FOR DERAILING THE
MULTIBILLIONDOLLAR PACT THEY HAD TOUTED AS THE IDEAL MARRIAGE OF
TECHNOLOGICAL MIGHT AND MARKET SAVVY

IN A SECOND STATEMENT LAST NIGHT MOREOVER TCI CALLED THE FCC ACTION
UNWARRANTED EXCESSIVELY SEVERE AND HARMFUL AND ANNOUNCED A 50 REDUCTION
IN ITS PLANNED 1994 CAPITAL SPENDING

BUT PEOPLE CLOSE TO BOTH COMPANIES MAKE IT CLEAR THAT THE DEAL ALSO WAS
SCUTTLED BECAUSE OF BITTER DISAGREEMENT OVER PRICE EVEN AFTER THE TWO
COMPANIES UNVEILED FIRM TERMS OF THEIR DEAL IN MIDOCTOBER THEY ENGAGED IN
A PROTRACTED BOUT OF DICKERING AND BICKERING

WHEN THE PACT WAS UNVEILED BELL ATLANTIC HAD AGREED TO PAY 118 BILLION IN
STOCK FOR MOST OF TCI'S COVETED CABLETV SYSTEMS AND AS MUCH AS 20 BILLION
FOR ALL TCI ASSETS INCLUDING ITS VAUNTED PORTFOLIO OF EQUITY STAKES IN SUCH
CABLE CHANNELS AS CABLE NEWS NETWORK TNT AND OTHER OUTLETS BUT TCI CHIEF
EXECUTIVE OFFICER JOHN C MALONE WHO STOOD TO REAP ABOUT 1 BILLION FOR HIS
SHARES WAS RELENTLESS IN HIS PUSH FOR AN EVER HIGHER VALUE AND SWEETER
TERMS BELL ATLANTIC'S CHAIRMAN RAYMOND B SMITH WAS ALL BUT INTRACTABLE
IN REFUSING TO ANTE UP AND INDEED WAS PUSHING FOR A LOWER PRICE THAT HE
FELT TCI DESERVED

THEIR RIFT WIDENED IN THE PAST FOUR MONTHS AS BELL ATLANTIC'S STOCK PRICE 
ITS CURRENCY IN THE TCI DEAL DROPPED SHARPLY FROM A HIGH OF 67625 THE
DAY AFTER THE DEAL WAS ANNOUNCED TO BELOW THE 54ASHARE PRICE IT HAD
GUARANTEED TO TCI AT THE SAME TIME TCI'S OWN CASHFLOW OUTLOOK A CRUCIAL
BENCHMARK FOR SETTING THE FINAL PRICE BELL ATLANTIC WOULD PAY HEADED SOUTH
THE FEDERAL COMMUNICATIONS COMMISSION SET A REDUCTION OF ABOUT 10 IN CABLE
RATES LAST YEAR ONLY TO RETURN TO THE ISSUE AND IMPOSE AN ADDITIONAL 7
ROLLBACK ON TUESDAY

THAT PROVED TO BE THE LAST STRAW ENDING WHAT WOULD HAVE BEEN ONE OF THE
LARGEST ACQUISITIONS IN US CORPORATE HISTORY AND THE LARGEST BY FAR IN
THE SPATE OF RAPIDFIRE TRANSACTIONS IN THE PAST YEAR OF COURTSHIP BETWEEN
TELECOMMUNICATIONS AND CABLE COMPANIES

YOU CAN'T UNDERESTIMATE THE IMPACT OF THIS ONE ON FUTURE DEALS IT CREATED
THE CLIMATE WE'RE ALL WORKING IN SAID CHARLES DOLAN FOUNDER OF
CABLEVISION SYSTEMS CORP SPURRED IN PART BY THE BELL ATLANTICTCI DEAL MR
DOLAN HAS BEEN IN NEGOTIATIONS WITH U S WEST INC AND ITS PARTNER TIME
WARNER INC ABOUT SELLING HIS CABLE SYSTEMS

BELL ATLANTIC AND TCI WOULD HAVE MADE A FORMIDABLE COMBINATION BELL
ATLANTIC SERVES SIX MIDATLANTIC STATES HAS SOME 18 MILLION PHONE LINES AND
HAD SET PLANS TO DELIVER INTERACTIVE SERVICES TO 12 MILLION HOMES BY THE
END OF NEXT YEAR AND MILLIONS MORE BEYOND THAT TCI WITH CABLETV SYSTEMS
IN 49 STATES REACHES INTO ONE OF EVERY FOUR CABLE HOUSEHOLDS IN THE NATION
AND ITS LIBERTY MEDIA CORP SPINOFF OWNS STAKES IN A PASSEL OF CABLE
CHANNELS

TOGETHER THE TWO COMPANIES WOULD HAVE HAD REVENUE OF ALMOST 17 BILLION
ANNUALLY AND CASH FLOW OF MORE THAN 6 BILLION THEY WOULD HAVE REACHED 40
OF ALL US HOMES A HEADSTART SO DAUNTING THAT THE DEAL'S UNVEILING
IMMEDIATELY SPARKED CRIES OF ANTICOMPETITIVE BEHAVIOR

INSIDERS SAID THAT IMPRESSIVE SCENARIO FINALLY FELL APART WITH THE FCC
ACTION ALTHOUGH FCC OFFICIALS COUNTER THAT BOTH PARTIES COULD WELL EXPECT
POSSIBLE RATE CUTS AND THAT SUCH A PROSPECT CAN'T BE BLAMED FOR THWARTING
THEIR HIGHLY TOUTED DEAL

ON THE DAY BEFORE THE FCC RATE CUT BELL ATLANTIC HAD OFFERED A NEW SET OF
TERMS THAT WOULD REDUCE ITS ORIGINAL BID IT WOULD PAY STOCK AMOUNTING TO
2000 PER CABLE SUBSCRIBER DOWN 15 FROM THE ORIGINAL RATE AND PAY ABOUT
06 SHARE FOR EACH TCI SHARE FOR THE ENTIRE COMPANY DOWN FROM AN ORIGINAL
RATIO OF 065 SHARE

A SOURCE CLOSE TO TCI SAID MR MALONE AND HIS NEGOTIATORS AGREED TO THOSE
TERMS AND HOPED TO PUT THEM BEFORE A BOARD VOTE TOMORROW BUT TCI EXECUTIVES
FIGURED THE NEW ROLLBACK ON TUESDAY WOULD PROMPT A NEW EFFORT BY BELL
ATLANTIC TO CUT THE PRICE AGAIN AND THEY WERE BRACED TO RESIST

TCI ITSELF FIGURED THE NEW FCCORDERED RATE CUT WOULD REDUCE ITS CASH FLOW
BY A DAUNTING 15 THIS YEAR WHEN BELL ATLANTIC DID INDEED INDICATE THAT IT
WANTED TO FURTHER TRIM THE PRICE MR MALONE BALKED AND ENDED THE TALKS A
PERSON IN THE TCI CAMP SAID

BUT AN EXECUTIVE ON THE BELL ATLANTIC SIDE OF THIS ACQUISITIONGONESOUR
PLACED THE BLAME SQUARELY IN TCI'S LAP AND ON MR MALONE IN PARTICULAR
MR MALONE WOULD HAVE RECEIVED ABOUT 1 BILLION IN BELL ATLANTIC STOCK FOR
SELLING HIS TCI SHARES AND HE AND TCI FOUNDER ROBERT MAGNESS WERE TO BE
PAID A 10 PREMIUM OVER WHAT REGULAR TCI SHAREHOLDERS WOULD RECEIVE

THAT SIMPLY WASN'T ENOUGH THIS BELL ATLANTIC ALLY CONTENDS AFTER THE FCC
ORDERED THE NEW 7 RATE CUT ON TUESDAY BELL ATLANTIC HAD ASKED MR MALONE
TO SIMPLY SPLIT THE DIFFERENCE AND TAKE A SOMEWHATREDUCED PRICE MR MALONE
REFUSED

HE JUST KEPT REACHING AND REACHING SAYS THIS EXECUTIVE ADDING THAT IN
THE MIDDLE OF THE INITIAL TALKS WITH BELL ATLANTIC BEFORE THE OCTOBER
ANNOUNCEMENT MR MALONE SURPRISED HIS NEW WOULDBE PARTNERS BY SETTING UP
TCI'S ACQUISITION OF THE LIBERTY MEDIA SPINOFF WHICH SIGNIFICANTLY ENHANCED
THE VALUE TCI WOULD CARRY IN THE BELL ATLANTIC ACQUISITION

THE DIVERGENT ACCOUNTS ARE IN STARK CONTRAST TO THE UNITED AND ENTIRELY
COMPATIBLE FRONT THAT MESSRS MALONE AND SMITH HAD PRESENTED WHEN THEY
ANNOUNCED THEIR DEAL IN OCTOBER

BOTH MEN TOOK LEAD ROLES IN SELLING THEIR DEAL AS GOOD FOR AMERICA AND AS
THE SPARK THAT WOULD SET OFF AN INTERACTIVE REVOLUTION LAST NIGHT NEITHER
WAS AVAILABLE TO EXPLAIN THEIR BREAKUP INSTEAD LEAVING THAT UNPLEASANT TASK
TO DESIGNATED SPOKESMEN AND TO THE BEHINDTHESCENES ADVISERS TO BOTH CAMPS

BELL ATLANTIC PRESIDENT JAMES CULLEN SAID THE TWO SIDES HAD VIRTUALLY ALL
THE DETAILS WORKED THROUGH EXCEPT THE FINAL PRICE BEFORE THE FCC MOVE ON
TUESDAY ONCE THE RATE CUT WAS IMPOSED EVEN THOUGH WE HAD ADJUSTED TO A
HELL OF A LOT OF THINGS IN FIVE MONTHS THIS WAS THE FINAL ADJUSTMENT THAT
JUST COULDN'T BE MADE HE SAID BELL ATLANTIC IS EAGER TO PURSUE JOINT
VENTURES WITH TCI

BUT FCC CHAIRMAN REED E HUNDT DISMISSED THE SNIPING AND SAID THE RATE CUT
DIDN'T IN ANY WAY MAKE THE FUTURE OF THE CABLE INDUSTRY MORE UNSETTLED

THE TWO COMPANIES WERE CONCERNED THAT IN ADDITION TO NEW RATE CUTS THE FCC
IS LOOKING AT OTHER CHANGES INCLUDING LINKING FUTURE PRICE INCREASES TO
PRODUCTIVITY GAINS REGULATING HOW CABLE SYSTEMS CAN PACKAGE CHANNELS AND
MAKING MAJOR CHANGES IN GOODWILL ALLOWANCES

BUT A SENIOR SENATE STAFFER CALLED THE COMPANIES' CRITICISM PREPOSTEROUS
HE NOTED THAT BELL ATLANTIC ITSELF LAST YEAR HAD DEMANDED THAT THE FCC CUT
CABLE RATES BY 28 EVEN MORE THAN THE TWO RATE CUTS THE PANEL HAS ALREADY
ADOPTED AND WHEN THE FCC FIRST IMPOSED THE 10 CUT THE STAFF MEMBER NOTED
BELL ATLANTIC WENT SO FAR AS TO SUE THE AGENCY CLAIMING IT DIDN'T COME DOWN
HARD ENOUGH

NEITHER COMPANY WILL BE CRIPPLED BY THE BREAKUP BUT THEIR EXPANSION PLANS
MAY BE PARED BACK TCI REMAINS THE NATION'S MOST POWERFUL CABLETV COMPANY
AND IT IS AN ATTRACTIVE PARTNER FOR A SLEW OF WOULDBE SUITORS FROM THE
TELECOMMUNICATIONS SIDE BELL ATLANTIC REMAINS THE MOST AGGRESSIVE OF THE
SEVEN BABY BELLS IN ITS PLANS FOR THE INTERACTIVE FUTURE AND ITS 5
BILLIONAYEAR CASH FLOW GIVES IT READY ACCESS TO NEW CAPITAL

WE'RE STILL VERY EAGER TO BE A MAJOR PLAYER IN THE VIDEO DELIVERY AND
PROGRAMMING BUSINESS SAID BELL ATLANTIC'S MR CULLEN BUT THAT DOESN'T
NECESSARILY MEAN FINDING ANOTHER CABLE PARTNER SEE RELATED ARTICLE
MERGER TALKS BY OTHER FIRMS MAY FEEL CHILL WSJ FEB 24 1994
9402240001 940224 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY  
RESULTS  BY TIMOTY J CARROLL

BONNIE BLAIR WON THE WOMEN'S 1000 METER SPEEDSKATING RACE TO BECOME THE
MOST SUCCESSFUL US WOMAN IN OLYMPIC HISTORY IT WAS HER FIFTH GOLD MEDAL
AND HER SIXTH OVERALL

SKATING IN THE SECOND PAIR MS BLAIR BOLTED TO THE SECONDBEST 1000 TIME
OF HER LIFE FINISHING IN 1 MINUTE 1874 SECONDS

GERMANY'S ANKE BAIER WON THE SILVER IN 12012 AND CHINA'S YE QIAOBO TOOK
THE BRONZE IN 12022 MS BLAIR WHO WILL BE 30 ON MARCH 18 WAS THE OLDEST
WOMAN IN THE RACE

MARKUS WASMEIER OF GERMANY WON HIS SECOND GOLD MEDAL CAPTURING THE MEN'S
GIANT SLALOM THE SHOWDOWN BETWEEN ALBERTO TOMBA AND KJETIL ANDRE AAMODT
FIZZLED

MR WASMEIER BEAT URS KAELIN OF SWITZERLAND BY 002 SECOND CHRISTIAN MAYER
OF AUSTRIA THE LEADER AFTER THE FIRST RUN ENDED UP WITH BRONZE TO EARN HIS
COUNTRY'S FIRST ALPINE MEDAL OF THESE GAMES MR WASMEIER'S TIME WAS TWO
MINUTES 5246 SECONDS

MR TOMBA TRYING TO BECOME THE FIRST MAN TO WIN ALPINE MEDALS IN THREE
STRAIGHT OLYMPICS WAS 119 SECONDS BACK AFTER THE FIRST RUN THEN MISSED A
GATE ON THE SECOND RUN

MR AAMODT A FAVORITE IN HIS HOME COUNTRY FINISHED 143 SECONDS BACK

MYRIAM BEDARD OF CANADA CAPTURED HER SECOND BIATHLON GOLD MEDAL EDGING
SVETLANA PARAMYGINA OF BELARUS BY 11 SECONDS IN THE WOMEN'S 75KILOMETER
SPRINT

VALENTYNA TSERBE OF UKRAINE WON THE BRONZE MEDAL 12 SECONDS OFF THE PACE
MS BEDARD COMPLETED THE COURSE IN 26 MINUTES 88 SECONDS

FOR THE MEN SERGEI TCHEPIKOV OF RUSSIA COMBINED PERFECT SHOOTING WITH A
STRONG FINISH TO WIN THE 10KILOMETER SPRINT MR TCHEPIKOV HAD A TIME OF 28
MINUTES 7 SECONDS

RICCO GROSS OF GERMANY WHO HELD A 58SECOND ADVANTAGE OVER MR TCHEPIKOV
AFTER THE SECOND AND LAST SHOOTING RANGE SLIPPED TO SECOND 60 SECONDS
BEHIND SERGEI TARASOV OF RUSSIA WON THE BRONZE

NANCY KERRIGAN OF THE US PERFORMED FLAWLESSLY AND WON THE OPENING SHORT
PROGRAM OF THE WOMEN'S FIGURE SKATING

WORLD CHAMPION OKSANA BAIUL OF UKRAINE ALSO SKATING BRILLIANTLY FINISHED
SECOND FRANCE'S SURYA BONALY WAS THIRD IN THE ROUTINE COUNTING ONETHIRD OF
THE OVERALL SCORE AMERICAN TONYA HARDING STUMBLED TWICE AND WAS 10TH

FINLAND BEAT THE US 61 AND WILL PLAY CANADA IN THE SEMIFINALS CANADA
BEAT THE CZECH REPUBLIC 32 IN OVERTIME SWEDEN WHICH BEAT GERMANY 30
WILL PLAY RUSSIA

JAPAN WILL TAKE A SEEMINGLY UNBEATABLE 5 MINUTE 7 SECOND LEAD OVER NORWAY
INTO TODAY'S 30KILOMETER CROSSCOUNTRY SKIING RELAY RACE SWITZERLAND IS
THIRD 9402240041 940113 BARNEY & FRIENDS PUBLIC TV PREPARES FOR
IMAGE TRANSPLANT TO JUSTIFY EXISTENCE  EDUCATIONAL PROGRAMMING 
TECHNOLOGY MARKETING MAY HELP PAY ITS WAY  SURVIVAL IN THE CABLE
AGE  BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK PUBLIC TELEVISION HAS BEEN VERY VERY GOOD TO LARRY LANCIT AND
CECILY TRUETT

ON THE STRENGTH OF PRODUCING ONE ACCLAIMED PUBLIC BROADCASTING SERVICE
CHILDREN'S SERIES READING RAINBOW PLUS PBS'S COMMITMENT TO BROADCAST
ANOTHER NEXT YEAR THE HUSBANDANDWIFE TEAM TOOK THEIR COMPANY LANCIT
MEDIA PRODUCTIONS LTD PUBLIC LANCIT CURRENTLY VALUED AT 80 MILLION AND
ITS COPRODUCER PUBLIC STATION KCETTV IN LOS ANGELES ALREADY HAVE SIGNED
A 31 MILLION DEAL WITH SONY CORP AND A 15 MILLION DEAL WITH
FISHERPRICE INC TO MARKET MERCHANDISE SPINOFFS FROM THEIR NEW CHILDREN'S
SHOW THE PUZZLEWORKS

MEANWHILE THE CONDUIT FOR ALL THIS COMMERCIAL SUCCESS THE PUBLIC
TELEVISION SYSTEM LIMPS ALONG ON THE SHABBYGENTEEL PRESTIGE OF AN
INSTITUTION UNTAINTED BY PROFITS BUT DEPENDENT ON THE KINDNESS OF STRANGERS
TO GET ALONG SOME PEOPLE CALL PUBLIC TV ELITIST SOME SEE IT CONTROLLED BY
LIBERALS OTHERS BY CONSERVATIVES AND BIG BUSINESS STILL OTHERS SEE IT AS A
WASTEFUL USE OF 275 MILLION IN TAXPAYERS' MONEY IN A WORLD OF PROLIFERATING
CABLE CHANNELS

IN FISCAL 1991 THE CORPORATION FOR PUBLIC BROADCASTING REAPED 317000 IN
PRODUCTLICENSING FEES FOR ITS ENTIRE LINEUP OF SHOWS THAT INCLUDES SUCH
MERCHANDISING BLOCKBUSTERS AS SHINING TIME STATION HOME OF THOMAS THE
TANK ENGINE THAT AMOUNT A RECORD FOR CPB BUT A PITTANCE IN THE WORLD OF
PRODUCT LICENSING WAS THE RESULT OF POORLY DESIGNED CONTRACTS INTENDED TO
AVOID ANY HINT OF PROFITMAKING

THIS IS THE DILEMMA THAT STYMIES PUBLIC TELEVISION NEVER MORE SO THAN
TODAY PUBLIC TELEVISION IS SUPPOSED TO PROVIDE NONCOMMERCIAL ALTERNATIVE
PROGRAMMING YET BE SELFSUSTAINING BUT DOES THE PURSUIT OF SHOWS THAT
ATTRACT SUBSCRIBER DOLLARS KEEP LESS BANKABLE SHOWS OFF THE AIR MEANWHILE
WHEN A PROGRAM LIKE BARNEY & FRIENDS PROVES WILDLY POPULAR WHAT
BUREAUCRATIC QUAGMIRE OR MISGUIDED SENSE OF MISSION KEEPS PUBLIC TV FROM
CASHING IN ON THE RESULTING SOLIDGOLD FRANCHISE

SUCH QUESTIONS PERCOLATE FROM THE LOFTY CORRIDORS OF THE CPB TO THE LOWLIEST
SMALLTOWN PUBLIC TVSTATION MANAGER'S DESK AS A TELECOMMUNICATIONS
REVOLUTION SWIRLS AROUND IT PUBLIC TELEVISION IS GROPING TO JUSTIFY ITS
EXISTENCE TO A RISING CHORUS OF CRITICS SHORE UP ITS FUNDING BASE
RECAPTURE DEFECTING VIEWERS AND FIND A SUITABLE ROLE FOR ITSELF IN THE
FASTAPPROACHING MULTICHANNEL TV FUTURE WE HAVE TO GET READY SO WE'RE NOT
LEFT IN THE DUST SAYS ROBERT OTTENHOFF PBS'S CHIEF OPERATING OFFICER

IN ONE SIGN OF TUMULTUOUS CHANGES AFOOT SIX OF THE EIGHT TOP OFFICERS OF
THE CPB ARE NEW THIS YEAR AMONG THOSE REPLACED WAS THE EXECUTIVE WHO
NEGOTIATED CPB'S CUT OF PRODUCTLICENSING DEALS AT AN UNPRECEDENTED
DECEMBER MEETING THAT BROUGHT TOGETHER ADMINISTRATORS OF THE SYSTEM'S TRIAD
 THE CPB ITS PBS PROGRAMMING ARM AND THE 351 LOCAL STATIONS THERE WAS
DARK TALK OF CUTTING DOWN AS MANY AS A THIRD OF THE STATIONS BY FORCING
MERGERS RIGHT NOW MANY CITIES HAVE SEVERAL PUBLIC STATIONS COMPETING FOR
OVERLAPPING AUDIENCES AND SPONSORS AND COME FEB 1 A NEW LEADER TAKES
CHARGE AT PBS ERVIN DUGGAN WHO IS STEPPING DOWN AS A MEMBER OF THE FEDERAL
COMMUNICATIONS COMMISSION AND HAS VOWED TO REBUILD THE CASE FOR PUBLIC
BROADCASTING

ULTIMATELY THAT MAY BE ACCOMPLISHED BY RETURNING PUBLIC TV TO ITS
EDUCATIONAL ROOTS WITH A BIG BOOST FROM TECHNOLOGY IF TELECOURSES ARE
MORE PROSAIC THAN BIG BIRD AND MASTERPIECE THEATRE THEY ARE
INCREASINGLY WHERE THE MONEY IS STATE GOVERNMENTS ARE SCRAMBLING TO BUILD
DISTANCELEARNING NETWORKS TO BRING INSTRUCTION AND INTERACTIVE DATA TO
SCHOOLS AND BUSINESSES AND PUBLIC TV STATIONS ARE LINCHPINS OF THESE NEW
MULTIMEDIA NETWORKS WHILE CONGRESS HAS BEEN UNWILLING TO SPRING FOR
UNRESTRICTED PBS PROGRAMMING BUDGETS IT HAS BEEN RECEPTIVE TO THE SYSTEM'S
NEW EDUCATIONAL PRIORITIES IT CAME UP WITH A SPECIAL 150 MILLION
ALLOCATION FOR PBS'S JUSTLAUNCHED TELSTAR 401 SATELLITE WHICH WILL CARRY
THE NEW READY TO LEARN CHANNEL OF INSTRUCTIONAL PROGRAMMING FOR
PRESCHOOLERS

THOUGH PBS HAS LURCHED FROM MONEY CRUNCH TO MONEY CRUNCH FOR MOST OF ITS
25YEAR HISTORY IT NOW FACES A FUNDAMENTAL CHANGE IN ITS CONSTITUENCY OF
PATRONS ONE THAT IS ALREADY ALTERING WHAT GOES ON THE AIR OF PUBLIC TV'S
TOTAL 139 BILLION BUDGET IN FISCAL 1992 CONGRESS'S SHARE HAS DROPPED TO
SLIGHTLY OVER 13 FROM NEARLY 20 IN 1980 THE PORTION PROVIDED BY STATE
GOVERNMENTS HAS DIPPED EVEN MORE SHARPLY TO 16 FROM ALMOST 25 IN 1980
THUS THERE IS GROWING PRESSURE ON SUBSCRIBERS AND CORPORATIONS TO TAKE UP
THE SLACK TOGETHER THEY NOW ACCOUNT FOR ABOUT 38 OF PUBLIC TV'S BUDGET
UP FROM 23 UNIVERSITIES AND FOUNDATIONS ACCOUNT FOR THE REST

YET PRIMETIME VIEWERSHIP HAS SLUMPED 18 IN THE PAST SIX YEARS AND
SUBSCRIBER CONTRIBUTIONS ROSE ONLY MODESTLY IN FISCAL 1992 THE LATEST
FIGURES AVAILABLE CORPORATE FUNDING WAS OFF 3 AND PBS SAYS THAT IN FISCAL
1993 SUPPORT FROM BUSINESS FOR NATIONAL PROGRAMMING NOSEDIVED 134 AND
INSIDERS EXPECT FURTHER DECLINES THIS YEAR

WE ARE JUST NOT GETTING THE KIND OF RESPONSE WE NEED FROM THE
RECESSIONBATTERED BUSINESS WORLD SAYS RICHARD CARLSON PRESIDENT AND
CHIEF EXECUTIVE OF CPB BUT AL VECCHIONE EXECUTIVE PRODUCER OF THE
MACNEIL/LEHRER NEWSHOUR AND A 22YEAR VETERAN OF PUBLIC TELEVISION BLAMES
UNDERWRITER DEFECTIONS ON PBS'S STRINGENT GUIDELINES GOVERNING THE NATURE
AND LENGTH OF CORPORATE MESSAGES EVEN THOUGH THOSE GUIDELINES HAVE BEEN
LOOSENED IN RECENT YEARS COMPANIES CAN BROADCAST A FULLLENGTH COMMERCIAL
ON CABLE TV AND REACH THE SAME SIZE AUDIENCE AS ON SAY NOVA HE ARGUES
I DO NOT SUPPORT THE IDEA OF COMMERCIALS ON PUBLIC TELEVISION HE SAYS
BUT THE GUIDELINES OUGHT TO BE LIBERALIZED AND STANDARDIZED

MACNEIL/LEHRER RECENTLY LOST A MAJOR UNDERWRITER WHEN PEPSICO INC
ANNOUNCED IT WOULD PULL OUT IN JUNE NEW YORK LIFE INSURANCE CO AND
ARCHERDANIELSMIDLAND CO WILL STEP INTO THE BREACH GIVING A TOTAL OF 55
MILLION OVER FIVE YEARS BUT MR VECCHIONE SAYS HE HASN'T RAISED A SINGLE
DOLLAR IN TWO YEARS FROM CORPORATE SPONSORS FOR THE PUBLICAFFAIRS SPECIALS
THAT HIS COMPANY ALSO PRODUCES

UNLESS THE SYSTEM'S FUNDING TROUBLES CAN BE RESOLVED IT WILL BE A
COMMERCIAL MEDIUM IN THE NEXT CENTURY WARNS BRUCE CHRISTENSEN WHO SERVED
AS PBS'S PRESIDENT FROM 1984 UNTIL LAST SUMMER

MANY SUGGEST IT IS TILTING PERILOUSLY CLOSE TO THAT NOW THE RAPID
TRANSFORMATION OF THE TV INDUSTRY ALREADY HAS BEGUN TO ROB PUBLIC TV OF ITS
DISTINCTIVE VOICE CABLE NETWORKS LIKE DISCOVERY AND ARTS & ENTERTAINMENT
STILL DON'T REACH ALL TELEVISION VIEWERS BUT THEY ROUTINELY OFFER CABLE
SUBSCRIBERS THE SORT OF CULTURAL FARE AND DOCUMENTARIES THAT ONCE WERE THE
SOLE PROVINCE OF PBS CABLE'S BRAVO CHANNEL EVEN OFFERS ADVERTISERS
UNDERWRITING OPPORTUNITIES MEANWHILE PUBLIC TV IS ASSIDUOUSLY COURTING
SUBSCRIBERS AND BUSINESS WHICH PURISTS DECRY AS EQUIVALENT TO CHASING BIG
RATINGS

FOR EXAMPLE THIS SEASON'S PRIMETIME PBS LINEUP INCLUDES A FAILED THOUGH
CRITICALLY ACCLAIMED NETWORK DRAMA SERIES I'LL FLY AWAY AND PBS IS
DEVELOPING SCRIPTS FOR A POTENTIAL COMEDY SERIES PRODUCED BY FORMER NBC
ENTERTAINMENT PRESIDENT BRANDON TARTIKOFF SITCOMS WILL BE OUR DEATH
KNELL SAYS WILLIAM BAKER PRESIDENT OF WNETTV IN NEW YORK TOO MANY
PEOPLE IN PUBLIC TELEVISION THINK OF THEMSELVES AS HIGHEND COMMERCIAL
BROADCASTERS IF YOU TREAT IT LIKE COMMERCIAL TELEVISION YOU'RE DOOMED

AT THE INDIVIDUAL STATION LEVEL THE CLASH BETWEEN THE SYSTEM'S MISSION AND
THE MARKETPLACE IS EVEN MORE VIVID EACH STATION GETS A PORTION OF ITS FUNDS
 LESS THAN 20 ON AVERAGE FROM THE CPB A PRIVATE NONPROFIT ENTITY
THAT ADMINISTERS CONGRESS'S ANNUAL ALLOCATION WHICH AMOUNTS TO 275 MILLION
IN FISCAL 1994 AFTER FUNNELING SOME OF THE MONEY BACK TO PBS FOR ITS
NATIONALPROGRAMMING SERVICE THE STATIONS ARE ON THEIR OWN TO FUND THE
REMAINDER OF THEIR BUDGETS IN RECENT YEARS SOME HAVE HAD TO SLASH EXPENSES
DRASTICALLY WHILE OTHERS HAVE TRIED A MORE ENTREPRENEURIAL APPROACH

SEATTLE'S KCTSTV AND DETROIT'S WTVSTV FORMED A JOINT VENTURE IN LONDON
THAT SEEKS OUT EUROPEAN PARTNERS OFTEN COMMERCIAL BROADCASTERS WITH
WHOM THEY COPRODUCE SHOWS THUS HALVING THEIR OWN COSTS A NUMBER OF
STATIONS HAVE CUT DEALS WITH A FRANCHISE KNOWN AS LEARNINGSMITH WHICH SELLS
PARAPHERNALIA RELATED TO PUBLIC TV PROGRAMS SUCH AS BOOKS AND VIDEOTAPES BUT
RETURNS LESS THAN 5 OF SALES TO THE STATIONS OTHERS LEASE OUT THEIR
PRODUCTION FACILITIES TO COMMERCIAL BROADCASTERS CHICAGO'S WTTW DERIVES
NEARLY A QUARTER OF ITS REVENUES FROM SUCH DEALS

BUT THE FUNDGRUBBING ALSO HAS LED STATIONS TO STRETCH PBS GUIDELINES
DESIGNED TO KEEP SPONSORS DISCREETLY IN THE BACKGROUND AND PROGRAMS
COMMERCIALFREE

 OVER TWO WEEKS LAST OCTOBER CHICAGO'S WTTW PRESENTED 40 HOURS OF PRODUCT
PITCHES IN A HOMESHOPPING SHOW THAT FEATURED SUCH ITEMS AS BRONZE STATUES
SWEAT SHIRTS AND JEWELRY CRITICS WERE AGHAST THAT HOME SHOPPING WAS
CROWDING OUT REGULAR PROGRAMMING BUT VIEWERS REGISTERED VERY FEW NEGATIVE
RESPONSES ACCORDING TO A STATION OFFICIAL

 NORM ABRAMS THE HOST OF THE NEW YANKEE WORKSHOP A PBS
HOMEWOODWORKING SHOW PRODUCED BY BOSTON'S WGBH PUTTERS ON CAMERA WITH
TOOLS MADE BY ONE OF THE SHOW'S UNDERWRITERS DELTA INTERNATIONAL MACHINERY
CORP THE BRAND NAMES ARE COVERED UP BUT A PRESS KIT FOR THE SHOW NOTES
THAT IT'S NOT UNUSUAL FOR DISTRIBUTORS TO RECEIVE PHONE CALLS FROM VIEWERS
INQUIRING ABOUT DELTA TOOLS THEY'VE SEEN NORM USE ON THE SHOW

 LAST YEAR PBS DISTRIBUTED A GLOWING DOCUMENTARY ON JOURNALIST JAMES
RESTON THE SHOW WAS PRODUCED BY THE SCRANTON PA PUBLIC TV STATION IN
ASSOCIATION WITH THE NEW YORK TIMES MR RESTON'S EMPLOYER FOR 42 YEARS
UNTIL HIS RETIREMENT IN 1987 ITS PRODUCER AND DIRECTOR SUSAN W DRYFOOS
IS A MEMBER OF THE SULZBERGER FAMILY THAT RUNS THE NEWSPAPER

MR DUGGAN PBS'S INCOMING PRESIDENT VIEWS SUCH COMMERCIALISM AS A FUNCTION
OF PBS'S PENURY BROUGHT ON HE SAYS BY 12 YEARS OF TIGHTFISTED
REPUBLICAN ADMINISTRATIONS IN WASHINGTON HE LIKENS THE SYSTEM TO A NEWLY
WIDOWED WOMAN FORCED TO TAKE IN LAUNDRY TO MAKE ENDS MEET

SOME OF THAT PENNYPINCHING STEMMED FROM REPUBLICAN COMPLAINTS THAT PUBLIC
TELEVISION IS A POORLY DISGUISED MOUTHPIECE FOR LIBERAL CAUSES OTHERS HAVE
COUNTERED THAT BIG BUSINESS AND THUS CONSERVATIVE THINKING CONTROLS
PUBLIC TV'S UNDERWRITING PURSE STRINGS

WHILE PBS CRIES POVERTY MANY OF ITS PROGRAM SUPPLIERS HAVE GOTTEN RICH
THROUGH PUBLIC TELEVISION EXPOSURE BARNEY MERCHANDISE EVERYTHING FROM
LUNCH BOXES TO UNDERWEAR GENERATES SEVERAL HUNDRED MILLION DOLLARS IN
RETAIL SALES ANNUALLY ANALYSTS ESTIMATE A CUT GOES BACK TO THE PRIVATE
LYONS GROUP WHICH PRODUCES THE SHOW BUT ALMOST NOTHING GOES TO THE CPB
WHICH TOGETHER WITH PBS HAS CONTRIBUTED MORE THAN 25 MILLION TO PRODUCE
EPISODES FEATURING THE PURPLE DINOSAUR AND BARNEY PRODUCERS CAN COUNT ON
MORE PUBLIC MONEY FOR NEW EPISODES BECAUSE ANY CPB LICENSING EARNINGS MUST
BE PLOWED BACK INTO NEW PRODUCTION THE TERMS OF THE DEAL HAVE OUTRAGED
LAWMAKERS WHO CONTROL THE CONGRESSIONAL ALLOCATION FOR PUBLIC TELEVISION

SIMILARLY PBS CONTINUES TO SUBSIDIZE SESAME STREET WHICH EARNS MILLIONS
ON ITS TOYS AND CLOTHING LINES WITH 6 MILLION ANNUALLY

LANCIT MEDIA'S NEW SERIES THE PUZZLEWORKS IS PBS'S FIRST MAJOR
UNDERTAKING FOR PRESCHOOLERS SINCE SESAME STREET MADE ITS DEBUT 25 YEARS
AGO SO FAR LANCIT AND KCETTV IN LOS ANGELES HAVE LINED UP 8 MILLION IN
OUTSIDE FINANCING INCLUDING A 45 MILLION GRANT FROM CPB ITS LARGEST
EVERTOWARD THE FIRST YEAR'S PRODUCTION BUDGET

CPB'S DEAL WITH LANCIT IS ITS STANDARD CPB PUT UP SEED MONEY EQUAL TO ABOUT
38 OF THE SHOW'S FIRSTYEAR BUDGET IN TURN IT WILL RECEIVE AND RETURN
TO LANCIT AND KCET FOR NEW PRODUCTION 19 OF THE NET ANCILLARY REVENUES
FROM MERCHANDISING AFTER DEDUCTING COSTS OF MARKETING PROMOTION AND
DISTRIBUTION AMONG OTHERS

MR CHRISTENSEN ARGUES THAT BECAUSE PUBLIC TELEVISION WON'T PROVIDE TOTAL
FUNDING FOR SHOWS IT HAS TO OFFER INCENTIVES TO ATTRACT ENTREPRENEURIAL
PRODUCERS YOU CAN'T HAVE IT BOTH WAYS HE SAYS ADDS PBS'S MR OTTENHOFF
FOR EVERY BARNEY' THERE ARE 20 TO 30 OTHER PROGRAMS THAT ARE
UNDERFUNDED

NEVERTHELESS BOTH CPB AND PBS OFFICIALS SAY THAT ALL LICENSING POLICIES ARE
UNDER REVIEW WE DON'T HAVE TO GET IN THE PROFITMAKING BUSINESS SAYS A
CPB EXECUTIVE BUT WE SHOULD GET MORE BACK TO USE TO GENERATE NEW SHOWS

THE NATIONALPROGRAM SCHEDULE IS JUST PART OF THE BUSINESS OF PUBLIC
TELEVISION THE REST OF ITS MANDATE IS THE LESS VISIBLE EDUCATIONAL SIDE
WHICH PBS ALSO OVERSEES AFTER YEARS OF TAKING A BACK SEAT TO NATIONAL
PROGRAMMING INSTRUCTIONAL TV IS NOW WHERE THE ACTION IS

A GLIMPSE OF PUBLIC TELEVISION'S FUTURE CAN BE SEEN TODAY IN SOUTH CAROLINA
WHERE PUBLIC TV'S ELECTRONIC CLASSROOMS REACH INTO EVERY SCHOOL PRISON AND
COUNTY BUILDING AND IN UTAH SALT LAKE CITY'S KUEDTV IS PART OF A
STATEWIDE CONSORTIUM THAT IS DEVELOPING AN INTERACTIVE VIDEO AUDIO AND
DATA SYSTEM THAT BRINGS SCIENCE CLASSES TO HIGHSCHOOL STUDENTS ON A NAVAJO
RESERVATION AND MEDICAL TRAINING TO RURAL DOCTORS CONSORTIUM MEMBERS
INCLUDE UTAH'S COLLEGES THE STATE OFFICE OF EDUCATION AND PRIVATE INDUSTRY
THE GROUP ALSO WORKS CLOSELY WITH PHONE COMPANY U S WEST AND CABLE COMPANY
TELECOMMUNICATIONS INC

WE'VE GOT TO PROVE OUR WORTH SAYS FRED ESPLIN KUED'S GENERAL MANAGER
IF WE'RE TRULY MEETING NEEDS THEN THE MONEY WILL BE THERE

MR DUGGAN THE INCOMING PBS PRESIDENT SAYS THAT WHILE HE WILL BE OUT
RATTLING THE TIN CUP PUBLIC TELEVISION ALSO MUST LEARN TO DO MORE WITH
IMAGINATION AND ORIGINALITY RATHER THAN FOCUS ON THE FUNDING CRUNCH HE
PREFERS TO EMPHASIZE WHAT HE CALLS UNHAPPY TRENDS IN COMMERCIAL
BROADCASTING THAT MAKE PUBLIC TV INCREASINGLY NECESSARY THE FEEDING FRENZY
TO SEE WHO CAN BE THE MOST EXPLOITIVE IN NEWS CHILDREN'S AND ENTERTAINMENT
SERIES PROGRAMMING

HE ALSO EXPECTS TO MAKE THE CASE THAT THE NEW INFORMATION SUPERHIGHWAY
SHOULD BE BUILT AROUND THE PUBLIC TELEVISION INFRASTRUCTURE ALREADY IN
PLACE A LOT OF GOOD MARRIAGES COME WHEN YOU MARRY THE GIRL OR BOY NEXT
DOOR AND IN THIS CASE THAT'S PUBLIC TELEVISION HE SAYS

LANCIT MEDIA PRODUCTIONS LTD THE PRODUCER OF THE READING RAINBOW SERIES
ON PUBLIC BROADCASTING SERVICE WENT PUBLIC IN 1991 A PAGEONE ARTICLE
THURSDAY SAID INCORRECTLY THAT AT THE TIME OF THE INITIAL PUBLIC OFFERING
LANCIT HAD A PBS COMMITMENT FOR ANOTHER SERIES THE PUZZLEWORKS LANCIT
DIDN'T RECEIVE THE COMMITMENT FOR THE PUZZLEWORKS UNTIL AFTER THE INITIAL
PUBLIC OFFERING SEE RELATED LETTER BACK TO SCHOOL VIA CABLE TV WSJ
FEB 24 1994 9401130062 YY94 MM02 9402240027 940126 ECONOMY US
FAMILIES' NET WORTH FELL 12 FROM '88 TO '91

WASHINGTON THE LAST FEW YEARS HAVE INDEED BEEN TOUGH FINANCIAL TIMES FOR
US FAMILIES

THE MEDIAN NET WORTH OF THE NATION'S HOUSEHOLDS TUMBLED 12 FROM 1988 TO
1991 AFTER ADJUSTMENTS FOR INFLATION THE CENSUS BUREAU SAID IN A NEW
REPORT THE DROP TO 36623 FROM 41472 IS MAINLY THE RESULT OF DECLINES IN
HOME EQUITY INTERESTEARNING ASSETS AT FINANCIAL INSTITUTIONS CHECKING
ACCOUNTS RENTAL PROPERTY AND ASSETS HELD IN BUSINESSES

THE REPORT FOUND BIG ETHNIC DIFFERENCES BLACK FAMILIES HAD A MEDIAN NET
WORTH OF ONLY 4604 IN 1991 AND HISPANIC FAMILIES HAD 5345 WHILE WHITE
HOUSEHOLDS HAD A MEDIAN NET WORTH OF 44408 HOWEVER WHITES WERE THE ONLY
RACIAL GROUP WITH A STATISTICALLY SIGNIFICANT DECLINE IN THEIR NET WORTH
DURING THE PERIOD IT FELL MORE THAN 13

THE REPORT ALSO FOUND THAT BLACKS TEND TO HAVE A LARGER PERCENTAGE OF THEIR
NET WORTH IN HOMES AND CARS WHILE THAT OF WHITES TENDS TO BE BASED IN
STOCKS MUTUAL FUNDS AND CERTIFICATES OF DEPOSIT

THOSE AMERICANS WITH ANNUAL INCOMES FROM 12852 TO 34968 ABOUT 20 OF
THE POPULATION EXPERIENCED THE LARGEST DROPS IN NET WORTH THE POOREST
FIFTH OF AMERICANS SAW THEIR NET WORTH RISE MORE THAN 4 WHILE THE RICHEST
FIFTH SAW THEIRS DROP 5

THE DISTRIBUTION OF NET WORTH WAS BASICALLY UNCHANGED DURING THE FOURYEAR
PERIOD THE RICHEST 20 OF AMERICANS HELD ABOUT 45 OF ALL THE WEALTH WHILE
THE POOREST 20 HELD ONLY 7

FAMILIES WITH THE LOWEST 20 OF TOTAL HOUSEHOLD INCOME HELD 7 OF HOUSEHOLD
NET WORTH IN 1991 WHILE THOSE WITH THE HIGHEST 20 OF INCOME HELD 447 OF
THE NET WORTH ACCORDING TO A CENSUS BUREAU REPORT A JAN 26 ARTICLE SAID
THAT THE RICHEST 20 OF AMERICANS HELD ABOUT 45 OF ALL THE WEALTH WHILE THE
POOREST 20 HELD ONLY 7 9402230202 940223 ECONOMY FED IS LIKELY TO
LIFT RATES GREENSPAN SAYS  TIMING AMOUNT OF INCREASE DEPEND ON
THE MARKETS' INFLATION EXPECTATIONS  BY DAVID WESSEL STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD CONGRESS THAT THE
FED IS LIKELY TO CONTINUE BOOSTING SHORTTERM INTEREST RATES BUT HOW MUCH
AND HOW SOON DEPENDS ON EXPECTATIONS ABOUT INFLATION

INFLATIONADJUSTED SHORTTERM RATES ARE MORE LIKELY TO HAVE TO RISE THAN
FALL FROM HERE I CANNOT HOWEVER TELL YOU WHEN ANY SUCH RISE WOULD OCCUR
MR GREENSPAN TOLD A HOUSE BANKING SUBCOMMITTEE TWO WEEKS AFTER THE FED'S
FIRST MOVE TO RAISE INTEREST RATES IN FIVE YEARS

WHILE ACKNOWLEDGING FINANCIAL MARKETS' ANXIETY THAT A STRENGTHENING ECONOMY
IS SOWING THE SEEDS OF AN ACCELERATION OF PRICES LATER THIS YEAR THE
CHAIRMAN OF THE NATION'S CENTRAL BANK USED HIS SEMIANNUAL REPORT TO CONGRESS
TO TRY TO CONVINCE MARKETS THAT THEY DON'T HAVE MUCH TO WORRY ABOUT
OVERALL COST AND PRICE PRESSURES STILL APPEAR TO REMAIN DAMPED HE SAID

STOCK AND BOND PRICES CLIMBED AMID INVESTOR RELIEF THAT MR GREENSPAN
DELIVERED NO UNPLEASANT SURPRISES IN HIS TESTIMONY THE DOW JONES INDUSTRIAL
AVERAGE JUMPED 2420 POINTS TO 391166

HISTORY  TELLS US THAT INFLATION REQUIRES FINANCIAL TINDER WHICH AT
THE MOMENT AS I SEE IT IS LACKING MR GREENSPAN SAID WAGES DON'T SEEM
TO BE ACCELERATING HE SAID ADVANCES IN PRODUCTIVITY OR OUTPUT PER HOUR OF
WORK ARE HOLDING DOWN LABOR COSTS THE MONEY SUPPLY BROADLY DEFINED IS
GROWING SLOWLY HE ADDED

MOREOVER HE PLAYED DOWN FEARS THAT THE US ECONOMY IS GROWING SO FAST THAT
IT THREATENS TO OVERHEAT ALTHOUGH ITS FORWARD MOMENTUM REMAINS INTACT
THE LOS ANGELES EARTHQUAKE AND THE SEVERE WINTER WEATHER HAVE SLOWED THE
ECONOMY AND AN UPTICK IN CLAIMS FOR UNEMPLOYMENT BENEFITS SUGGESTS A
SOMEWHAT LESS BUOYANT DEGREE OF ACTIVITY THE FED CHIEF SAID

THE CENTRAL BANK MR GREENSPAN VOWED WON'T WAIT UNTIL INFLATION ACTUALLY
SHOWS ITSELF BEFORE RAISING INTEREST RATES AGAIN INSTEAD IT IS WATCHING
REFLECTIONS OF MARKET EXPECTATIONS FOR INFLATION PARTICULARLY THE PRICE
OF GOLD EXCHANGE RATES AND THE RELATIONSHIP BETWEEN LONG AND SHORTTERM
INTEREST RATES

RESPONDING TO A QUESTION FROM REP JOHN LAFALCE D NY MR GREENSPAN
UNDERSCORED THE SIGNIFICANCE OF CHANGES IN THE PRICE OF GOLD SAYING IT IS
A REASONABLY GOOD INDICATOR AMONGST OTHERS OF WHAT INFLATION EXPECTATIONS
ARE DOING  IT'S NOT A PERFECT INDICATOR BUT IT IS A VERY GOOD
INDICATOR

WITH MONEYSUPPLY MEASURES NO LONGER PROVIDING A USEFUL GUIDE FOR THE FED
MR GREENSPAN ADDED WE ARE SEEKING ANYTHING WHICH GIVES US INSIGHT INTO
THE PROCESS AND WHAT HISTORY DOES TELL US IS THAT GOLD IS A USEFUL
INDICATOR THEREOF FORMER FED GOV WAYNE ANGELL LONG AN ADVOCATE OF
TRACKING GOLD PRICES SMILED AND NODDED FROM HIS SEAT IN THE AUDIENCE

GOLD PRICES SURGED LATE LAST YEAR AS THE US ECONOMY REBOUNDED AND HAVEN'T
MOVED MUCH THIS YEAR

FED POLICY MAKERS EXPECT CONSUMERPRICE INFLATION OF ABOUT 3 THIS YEAR A
SHADE HIGHER THAN LAST YEAR'S 27 ACCORDING TO A REPORT MR GREENSPAN
SUBMITTED WITH HIS TESTIMONY THE REPORT ALSO SAID THAT A POOR 1993 HARVEST
HAS LEFT SOME CROPS SCARCE A REPEAT OF LAST YEAR'S DECLINE IN ENERGY PRICES
IS UNLIKELY AND COMPETITIVE PRESSURE DAMPING WAGE AND PRICE INCREASES WILL
BE LESS STRONG AND LESS PERVASIVE THAN THEY HAVE BEEN RECENTLY

PRESIDENT CLINTON TOLD REPORTERS HE WAS ENCOURAGED BY MR GREENSPAN'S
TESTIMONY CITING THE FED CHAIRMAN'S VIEW THAT CONDITIONS FOR ECONOMIC
GROWTH ARE BETTER THAN THEY HAVE BEEN FOR DECADES AND THAT THERE ISN'T ANY
SIGN OF AN INCREASE IN INFLATION THE PRESIDENT REFUSED TO TALK ABOUT
SHORTTERM INTEREST RATES HOWEVER

MR GREENSPAN DESCRIBED THE FED'S MOVE TO RAISE SHORTTERM INTEREST RATES
EARLIER THIS MONTH AS LOWCOST INSURANCE AGAINST THE RISK OF A FUTURE
DESTABILIZING BUILDUP OF INFLATIONARY PRESSURES HE SAID THE CENTRAL BANK
HAD BEEN HOLDING INTEREST RATES ABNORMALLY LOW IN RESPONSE TO THE UNUSUAL
DRIVE OF CONSUMERS AND BUSINESSES TO PAY DOWN DEBT WITH THAT PHASE OF THE
ECONOMIC EXPANSION PAST THE FED NO LONGER HAD ANY REASON TO CONTINUE
HOLDING RATES SO SLOW HE SAID

NEITHER DEMOCRATIC NOR REPUBLICAN MEMBERS OF THE SUBCOMMITTEE WERE
CONVINCED INFLATION IS FROZEN IN ITS TRACKS SAID REP PAUL KANJORKSI
D PA CHAIRMAN OF THE SUBCOMMITTEE FED CRITIC REP HENRY GONZALEZ D
TEXAS CHAIRMAN OF THE FULL COMMITTEE DIDN'T ATTEND

MR GREENSPAN IN THE PAST HAS POINTED TO THE FED'S GOAL OF SETTING
SHORTTERM RATES AT LEVELS THAT WILL ENCOURAGE THE BOND MARKET TO KEEP
LONGTERM INTEREST RATES LOW BUT AS MR KANJORKSI AND OTHERS NOTED
REPEATEDLY LONGTERM RATES HAVE RISEN SINCE THE FED'S FEB 4 MOVE PUT ON
THE DEFENSIVE MR GREENSPAN SAID THAT SHORT AND LONGTERM INTEREST RATES
TEND TO MOVE TOGETHER AND SUGGESTED THAT THE TEST OF MONETARY POLICY IS
WHETHER LONGTERM RATES RISE LESS THAN THEY OTHERWISE WOULD HE DIDN'T SAY
HOW THAT CAN BE DETERMINED

IN OTHER MATTERS MR GREENSPAN AND THE REPORT HE SUBMITTED SAID

 FED OFFICIALS EXPECT THE ECONOMY TO GROW A MODERATE 3 TO 3 1/4 THIS
YEAR BUT AT BEST THEY EXPECT ONLY A SLIGHT DECREASE IN THE UNEMPLOYMENT
RATE FROM THE 67 REPORTED FOR JANUARY

 THE FED'S UNUSUAL PUBLIC ANNOUNCEMENT OF ITS FEB 4 DECISION TO RAISE
INTEREST RATES WASN'T INTENDED AS A PRECEDENT BUT THE CENTRAL BANK DOES
PLAN CHANGES IN ITS DISCLOSURE POLICIES WHICH ARE TO BE ANNOUNCED IN THE
FUTURE

 THE SIGNALS FROM MONEYSUPPLY MEASURES ONCE CRUCIAL TO FED THINKING
HAVE BEEN EFFECTIVELY JAMMED BY CHANGES IN FINANCIAL MARKETS AND THE
UNUSUAL NATURE OF THE CURRENT BUSINESS CYCLE THUS THE FED CONTINUES TO
LARGELY DISREGARD THEM

 THE FED HAS DELIBERATELY LENGTHENED THE MATURITY OF ITS PORTFOLIO OF
TREASURY SECURITIES TO 32 YEARS FROM 30 YEARS IN 1992 BY BUYING
LONGERTERM DEBT AT THE BEGINNING OF THE 1980S THE AVERAGE MATURITY OF THE
CENTRAL BANK'S PORTFOLIO WAS GREATER THAN FOUR YEARS AND IT DECLINED
STEADILY UNTIL 1991 WHEN IT REACHED 29 YEARS SOME ECONOMISTS HAVE URGED
THE FED TO BUY MORE LONGERTERM SECURITIES TO HELP REDUCE LONGTERM INTEREST
RATES 9402230201 940223 BAXTER RECEIVES LONGTERM ORDERS FROM HEALTH
GROUP  BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET
JOURNAL

DEERFIELD ILL BAXTER INTERNATIONAL INC SIGNED MULTIYEAR SUPPLY
AGREEMENTS WITH A MAJOR HOSPITAL GROUP THAT LAST YEAR CURTAILED ITS DEALINGS
WITH THE COMPANY OVER CONCERNS ABOUT BAXTER'S ETHICS AND BUSINESS
PRACTICES

BAXTER A HOSPITALSUPPLY CONCERN VALUED THE AGREEMENTS WITH PREMIER HEALTH
ALLIANCE AT ABOUT 300 MILLION OVER THEIR LIFE PREMIER IS A COOPERATIVE
THAT AMONG OTHER SERVICES MAKES PURCHASES ON BEHALF OF ABOUT 190 HOSPITALS
AND HEALTH SYSTEMS NATIONWIDE

THE PACTS INCLUDE A FIVEYEAR AGREEMENT CALLING FOR BAXTER HEALTHCARE CORP
TO PROVIDE PREMIER WITH SURGICALPROCEDURE KITS AND STERILE GOWNS THE TWO
OTHER CONTRACTS ARE THREEYEAR AGREEMENTS TO PROVIDE THE WESTCHESTER ILL
ALLIANCE WITH DEVICES AND CATHETERS USED IN HEART SURGERY

IN THE SPRING OF 1993 PREMIER SAID IT WOULD REDUCE ITS BUSINESS WITH BAXTER
BY UP TO 50 MILLION IN THE COMING 12 MONTHS IT HAD BEEN MAKING ABOUT 250
MILLION IN ANNUAL PURCHASES FROM BAXTER BAXTER'S GUILTY PLEA IN MARCH OF
LAST YEAR TO A CHARGE OF VIOLATING FEDERAL LAW PROHIBITING COOPERATION WITH
THE ARAB BOYCOTT OF ISRAEL PLAYED A ROLE IN PREMIER'S DECISION BUT IT ALSO
REFLECTED UNHAPPINESS OVER WHAT PREMIER THEN CHARACTERIZED AS A SERIES OF
INCIDENTS OVER THE LAST FOUR YEARS THAT UNDERMINED MEMBER HOSPITALS'
CONFIDENCE IN BAXTER'S ETHICS AND BUSINESS PRACTICES

A SPOKESWOMAN CONFIRMED THAT THE ALLIANCE HAS IN FACT TAKEN BUSINESS AWAY
FROM BAXTER WE HAVE CARRIED OUT THE DIRECTIVE MEMBER HOSPITALS GAVE US
LAST SPRING TO REDUCE BY UP TO 50 MILLION OUR BUSINESS WITH BAXTER SHE
SAID BUT SHE ADDED THAT THE ALLIANCE CONTINUES TO EVALUATE EXISTING OR NEW
BUSINESS OPPORTUNITIES WITH BAXTER AND TO MAKE DECISIONS ON AWARDING
CONTRACTS BASED ON THE BEST OVERALL VALUE THEY BRING TO OUR HOSPITAL
MEMBERS

SHE SAID THE ALLIANCE WILL CONTINUE TO MAKE ITS EVALUATIONS ON A
CONTRACTBYCONTRACT BASIS AND WE ALSO CONTINUE TO MONITOR BAXTER'S
PROGRESS TO IMPROVE THE BUSINESS RELATIONSHIP WITH ITS BIG CUSTOMER
9402230200 940223 WHO'S NEWS UNITED COS FINANCIAL CORP

UNITED COS FINANCIAL CORP BATON ROUGE LA JOHN D DIENES WAS NAMED
CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS
FINANCIALSERVICES CONCERN AS WELL AS A MEMBER OF ITS EXECUTIVE COMMITTEE
THE POSITIONS ARE NEWLY CREATED MR DIENES 52 YEARS OLD IS A FORMER
EXECUTIVE VICE PRESIDENT AT NATIONSBANK CORP 9402230199 940223 SUNNY
CHARTS CAN BELIE GLOOMY RETURNS FROM INSURANCE  BY GREG STEINMETZ 
STAFF REPORTER OF THE WALL STREET JOURNAL

LIKE A LOT OF CONSUMERS RAM REDDY A HOUSTON PHARMACIST BASED HIS DECISION
TO BUY A LIFEINSURANCE POLICY ON AN ELABORATE CHART DEPICTING WHAT HE
THOUGHT THE POLICY WOULD EARN OVER TIME

IT HAS EARNED SIGNIFICANTLY LESS

AND NOW BECAUSE THE COMPANY CUT THE DIVIDEND IT PAYS POLICYHOLDERS HE HAS
TO PAY AN EXTRA YEAR OF PREMIUMS FOR A POLICY THAT SHOULD HAVE BEEN PAID
FOR

UNFORTUNATELY MR REDDY WHO BOUGHT THE POLICY FROM METROPOLITAN LIFE
INSURANCE CO DIDN'T KNOW WHAT THE INSURANCE INDUSTRY KNOWS THESE
COMPLICATED CHARTS CALLED ILLUSTRATIONS ARE BASED ON OPTIMISTIC
ASSUMPTIONS THAT MIGHT NOT OCCUR THE THREE OF FOUR POLICYHOLDERS WHO OWN
WHOLELIFE OR OTHER FORMS OF CASHVALUE INSURANCE WHICH OFFER AN INVESTMENT
FEATURE AS WELL AS A DEATH BENEFIT MAY VERY WELL NOT EARN AS MUCH AS
ILLUSTRATED

ALTHOUGH THE CHARTS GENERALLY CARRY DISCLAIMERS TOO OFTEN THE BUYER 
EITHER THROUGH IGNORANCE OR AT THE BEHEST OF HIS AGENT SIMPLY IGNORES IT
THAT HAS MADE ILLUSTRATIONS ONE OF THE MOST POTENT AND MISLEADING WEAPONS IN
THE INSURANCE INDUSTRY'S SALES ARSENAL

IF YOU GET AN ILLUSTRATION YOU SHOULD THROW IT IN THE WASTE BASKET SAYS
JOSEPH BELTH AN INSURANCE EXPERT AND EDITOR OF THE INSURANCE FORUM
NEWSLETTER

ILLUSTRATIONS LONG IN USE HAVE ALWAYS BEEN PROBLEMATIC BUT CONTROVERSY
OVER THEM IS HEATING UP BECAUSE OF FALLING INTEREST RATES BECAUSE INSURANCE
COMPANIES ARE EARNING LESS ON THEIR INVESTMENTS THEY HAVE BEEN CUTTING THE
RATES THEY PAY POLICYHOLDERS THE CUTS WHICH SOME COMPANIES BEGAN MAKING
EIGHT YEARS AGO BELIE THE RETURNS SHOWN ON THE CHARTS

NOW STATE INSURANCE COMMISSIONERS ARE TRYING TO HELP THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS A GROUP OF INSURANCE COMMISSIONERS
FROM THE 50 STATES IS CONSIDERING STEPS RANGING FROM BANNING THE USE OF
PROJECTED RETURNS TO SETTING STANDARDS ON WHAT ASSUMPTIONS CAN BE USED THE
GROUP IS SCHEDULED TO MEET IN DENVER IN MARCH TO CONSIDER THE OPTIONS

ITS DECISION COULD RADICALLY CHANGE THE WAY INSURANCE IS SOLD

NOT ONLY DO ILLUSTRATIONS PAINT WHAT COULD BE AN UNREALISTICALLY PROFITABLE
RETURN FROM LIFEINSURANCE POLICIES THEY ALLOW AGENTS TO TALK UP SOMETHING
OTHER THAN THE MACABRE DEATH BENEFITS

IN THEIR PRESENTATIONS AGENTS POINT TO THE FIGURES AND DESCRIBE HOW THE
MONEY EARNED BY A POLICY COULD BE USED TO FUND COLLEGE TUITION RETIREMENT
OR OTHER FINANCIAL GOALS THE RETURN SHOWN IN AN ILLUSTRATION IS BASED ON A
COMBINATION OF THE POLICY'S GUARANTEED INTEREST RATE AND ITS EXCESS
INTEREST RATE OFTEN CALLED A DIVIDEND THAT IS ENTIRELY AT THE
COMPANY'S DISCRETION ILLUSTRATIONS OFTEN ASSUME A COMPANY'S EXCESS RATE
WILL CONTINUE

IF A COMPANY INCREASES ITS DIVIDEND THE POLICYHOLDER FARES BETTER THAN
SHOWN IN THE ILLUSTRATION IF A COMPANY CUT ITS RATE AS MANY ARE DOING THE
POLICYHOLDER LOSES

WHILE AGREEING THAT ILLUSTRATIONS SHOULD BE MODIFIED INSURANCE COMPANIES
OBJECT TO DRASTIC REFORMS THEY SAY THE PROPOSALS DISCUSSED BY THE
COMMISSIONERS WOULD HURT THE CONSUMER BY MAKING IT DIFFICULT TO COMPARE
COMPANIES' POLICIES THEY ADD THAT ILLUSTRATIONS ARE CRUCIAL IN DESCRIBING
WHAT HAPPENS TO THE POLICYHOLDER'S INVESTMENT RETURNS OVER THE LIFE OF THE
POLICY

IF ILLUSTRATIONS ARE USED APPROPRIATELY THEY ARE A GOOD WAY TO SHOW WHAT
HAPPENS IN A POLICY SAYS GENE GRABOWSKI SPOKESMAN FOR THE AMERICAN
COUNCIL OF LIFE INSURANCE A TRADE GROUP

OTHERS SAY THE PROPOSED CHANGES WHILE WELLINTENTIONED FALL SHORT OF
WHAT'S NEEDED AMY JOHNSON WHO HEADS THE TEXAS OFFICE OF PUBLIC INSURANCE
ADVOCATE A STATESPONSORED CONSUMER WATCHDOG CONTENDS THAT CHANGING THE
WRITTEN MATERIALS DOESN'T ALTER THE ETHICS OF AN UNSCRUPULOUS INSURANCE
AGENT WHO EAGER FOR A COMMISSION OVERSELLS THE PRODUCT

YOU CAN'T REGULATE PEOPLE'S CONDUCT SHE SAYS

SHE WOULD PREFER A WARNING LABEL ON LIFE INSURANCE THAT SAYS IF YOU DON'T
HOLD THIS POLICY FOR FIVE YEARS YOU'RE THROWING YOUR MONEY DOWN THE DRAIN
ADMINISTRATIVE COSTS AND AGENT COMMISSIONS CONTRIBUTE TO LOSSES IN THE EARLY
YEARS OF A POLICY

TO HELP CLEAR UP THE CONFUSION AND HEAD OFF RADICAL CHANGES BY THE STATE
INSURANCE COMMISSIONERS THE INDUSTRY HAS COME UP WITH SEVERAL SUGGESTED
CHANGES IN THE USE OF ILLUSTRATIONS

ON JAN 1 NEW ENGLAND MUTUAL LIFE INSURANCE CO BEGAN USING AN ILLUSTRATION
THAT LIKE CURRENT ONES SHOWS PROJECTED RATES OF RETURN BUT IT GOES
FURTHER BY SHOWING PROJECTIONS UNDER THREE INTERESTRATE SCENARIOS IT ALSO
SHOWS THE GUARANTEED INVESTMENT RETURN AND IN CONTRAST TO MANY
ILLUSTRATIONS THE FIGURES ARE DISPLAYED IN A CLEAR EASYTOREAD MANNER

WE WANT TO SEND A MESSAGE TO POLICYHOLDERS ABOUT THE VARIABILITY OF
DIVIDEND SAYS KERNAN KING THE INSURER'S MARKETING CHIEF WE THINK THIS
IS THE WAY THE REST OF THE INDUSTRY SHOULD GO HE SAYS THE COMPANY'S AGENTS
HAVE BEEN SUPPORTIVE

THE AMERICAN SOCIETY OF CLU & CHFC AN AGENT GROUP STARTED A PROGRAM TO
GIVE AGENTS MORE INFORMATION ABOUT THE POLICIES THEY SELL CALLED THE
INSURANCE QUESTIONNAIRE OR IQ IT OUTLINES THE ASSUMPTIONS THAT GO INTO AN
ILLUSTRATION AND HELPS AGENTS CONCLUDE WHETHER THEY ARE UNREALISTIC

IT DOESN'T RENDER A MORE ACCURATE ILLUSTRATION BUT IT HELPS THE AGENT
INTERPRET THE ILLUSTRATION SAYS RICHARD WEBER A VICE PRESIDENT WITH
MERRILL LYNCH LIFE INSURANCE GROUP

BUT CONSUMER ADVOCATES SAY THE CHANCES OF MEANINGFUL REFORM SEEM SLIGHT
NOTING THAT THE INSURANCE INDUSTRY HAS A HISTORY OF HEADING OFF EFFORTS AT
REFORM FOR INSTANCE WHEN THE FEDERAL TRADE COMMISSION IN 1979 CALLED FOR
GREATER DISCLOSURE REQUIREMENTS FOR LIFE INSURANCE THE INDUSTRY
SUCCESSFULLY LOBBIED TO BAN THE AGENCY FROM HAVING ANYTHING TO DO WITH
INSURANCE LEGISLATION TO BRING FEDERAL OVERSIGHT TO THE INSURANCE INDUSTRY
HAS LANGUISHED SINCE BEING INTRODUCED TWO YEARS AGO

THE REFORMS AIMED AT PROVIDING POLICYHOLDERS WITH MORE INFORMATION MIGHT
HELP PEOPLE LIKE MR REDDY IN HOUSTON MR REDDY WHO BOUGHT A
VANISHINGPREMIUM LIFE INSURANCE POLICY SAYS HE READ THE FINE PRINT ON HIS
ILLUSTRATION THAT SAID THE RATES WEREN'T GUARANTEED BUT HE SAYS HIS AGENT
TOLD HIM THAT THE COMPANY METROPOLITAN LIFE INSURANCE HAD NEVER CUT RATES
AND THAT HE SHOULDN'T EXPECT IT TO

I ABSOLUTELY DID NOT THINK THIS COULD HAPPEN MR REDDY SAYS THEY
PROMISE ONE THING BUT IN REALITY SOMETHING ELSE HAPPENS

MET LIFE SAYS ITS AGENT WARNED MR REDDY THAT THE ILLUSTRATED RETURNS WERE
ONLY ASSUMPTIONS IT ADDS THAT THE AGENT WAS ON PRETTY SOLID GROUND WHEN HE
EVOKED THE COMPANY'S DIVIDEND HISTORY BECAUSE OF RISING INTEREST RATES MET
NEVER LOWERED ITS DIVIDENDS BETWEEN 1942 AND 1992 9402230198 940223
BRITAIN'S 4THQUARTER GDP ROSE

LONDON BRITAIN'S GROSS DOMESTIC PRODUCT ROSE A REVISED 08 IN THE FOURTH
QUARTER FROM THE THIRD QUARTER AND WAS UP 26 FROM A YEAR EARLIER
ACCORDING TO SEASONALLY ADJUSTED FIGURES PUBLISHED YESTERDAY BY THE CENTRAL
STATISTICS OFFICE

THE RISE PUTS GDP FOR THE WHOLE OF 1993 2 HIGHER THAN IN 1992 9402230197
940223 WHO'S NEWS CHEMED CORP

CHEMED CORP CINCINNATI JOHN M MOUNT 51 YEARS OLD A PRINCIPAL AT
MANAGEMENT CONSULTING FIRM LYNCHMOUNT ASSOCIATES CINCINNATI WAS ELECTED A
DIRECTOR OF THIS CORPORATION WITH BUSINESSES IN MEDICAL AND DENTAL SUPPLY
MANUFACTURING AND DISTRIBUTION HOME HEALTH CARE AND PHARMACY MANAGEMENT
SERVICES AND SANITARY MAINTENANCE PRODUCTS AND SERVICES AMONG OTHER
THINGS THE APPOINTMENT INCREASES CHEMED'S BOARD TO 19 MEMBERS 9402230196
940223 TEXAS JOURNAL  GET OUT THE BATTERED BOOTS THE TOURISTS ARE
COMING  BY JAMES S HIRSCH

CULTIVATING A WELLROUNDED IMAGE IS FINE BUT FOR SURE IMPACT THERE'S
NOTHING LIKE A RUGGED STEREOTYPE

TEXAS TOURISM OFFICIALS SAY A NEW ADVERTISING CAMPAIGN ESPECIALLY THE
CLOSEUP SHOT OF A WEATHERED WESTERN BOOT HAS SPURRED UNEXPECTEDLY STRONG
INTEREST IN THE TEXAS TRAVEL GUIDE THE 272PAGE PAPERBACK A COMPENDIUM OF
THE STATE'S ATTRACTIONS IS DISTRIBUTED FREE TO ANYONE REQUESTING IT BY THE
TEXAS DEPARTMENT OF TRANSPORTATION OFFICIALS CONSIDER INTEREST IN THE GUIDE
A LEADING INDICATOR OF THE STATE'S TOURISM INDUSTRY WHICH HAD REVENUE OF
21 BILLION LAST YEAR HALF OF THE PEOPLE WHO REQUEST IT GENERALLY VISIT THE
STATE WITHIN A YEAR THEY SAY

IN RECENT WEEKS NEW TRAVELGUIDE ADS THAT HAVE APPEARED IN ABOUT 20
NATIONAL MAGAZINES HAVE PRODUCED A THREEFOLD SURGE IN REQUESTS FOR THE
PUBLICATION SAYS STAN HODGE TRAVEL RESEARCH COORDINATOR FOR THE TEXAS
DEPARTMENT OF COMMERCE

THE BIGGEST RESPONSE IS COMING FROM A TWOPAGE AD IN FEBRUARY'S LIFE
MAGAZINE FEATURING A LEATHER BOOT A BLUEJEAN CUFF AND GLEAMING METAL SPUR
HOW CAN YOU TELL ONE COUNTRY FROM ANOTHER BY THEIR FEET THE AD READS
MR HODGE SAYS THE AD HAS GENERATED 25000 PHONE AND MAIL RESPONSES

GSD&M THE AUSTIN AGENCY THAT HAS PRODUCED ADS FOR THE TRAVEL GUIDE SINCE
1988 SAYS THE CAMPAIGN'S GOAL IS TO BROADEN OUTSIDERS' PERCEPTIONS OF
TEXAS THAT'S WHY SOME ADS FEATURE STATE BEACHES AND BLUEBONNETS BUT THE
BOOT ROMANTICIZES TEXAS' WESTERN HERITAGE SAYS STEVE AMOS AN ACCOUNT
SUPERVISOR WITH THE AGENCY

THE CAMPAIGN HOWEVER MAY HAVE A COSTLY CONSEQUENCE PRODUCING AND MAILING
THE GUIDE COSTS 150 A COPY AND MR HODGE FEARS THE STRONG RESPONSE WILL
PUT THE STATE OVER ITS BUDGET ON THE BOOK THIS YEAR THERE MAY BE SUCH A
THING HE SAYS AS BEING TOO SUCCESSFUL 9402230195 940223 TEXAS
JOURNAL  SMALL ENERGY PRODUCERS LOOK TO FUTURES  BY LAURA
JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL

HOUSTON AFTER DECADES OF RUNNING THEIR BUSINESSES LIKE RIVERBOAT
GAMBLERS SMALL TEXAS ENERGY PRODUCERS ARE STARTING TO HEDGE THEIR BETS

BURNED BY WILD OIL PRICE SWINGS TEXAS INDEPENDENTS ARE TURNING TO THE
FUTURES MARKETS FOR PROTECTION JOINING LARGER OIL AND GAS COMPANIES NOT
TO MENTION FARMERS AND CATTLE RANCHERS THEY'RE LEARNING HEDGING
TECHNIQUES TO BRING SOME STABILITY TO THEIR FINANCES

BUT CRITICS WARN THAT SMALL PRODUCERS COULD GET IN OVER THEIR HEADS WITH
SUCH SOPHISTICATED TRADING AND THEY CAUTION THAT THE TIMING NOW MAY BE
WRONG FOR BETTING AGAINST THE OIL MARKETS

THOUGH NOBODY KEEPS EXACT STATISTICS EXPERTS SAY HEDGING BY SMALL PRODUCERS
HAS SURGED RECENTLY ESPECIALLY SINCE DECEMBER WHEN THE PRICE OF OIL
PLUMMETED TO A FIVEYEAR LOW OF 1375 A BARREL

ENRON CORP HOUSTON SAYS BUSINESS FROM PRODUCERS HAS QUADRUPLED IN THE
PAST YEAR IN ITS RISKMANAGEMENT TRADING OPERATION A SPOKESWOMAN FOR THE
NEW YORK MERCANTILE EXCHANGE SAYS OIL PRODUCERS' INCREASED INTEREST
CONTRIBUTED TO A 27 JUMP IN THE VOLUME OF CRUDEOIL FUTURES TRADING IN
DECEMBER FROM A YEAR EARLIER

FIVE YEARS AGO EVERYONE GRUMBLED ABOUT THE MARKET IN NEW YORK SETTING THE
PRICE OF CRUDE OIL IN WEST TEXAS SAYS T BOONE PICKENS WHOSE DALLASBASED
MESA INC HAS USED HEDGES FOR YEARS TODAY IF YOU HAVE FIVE PRODUCERS
SITTING AROUND A TABLE TWO OR THREE WILL BE USING MARKET HEDGES OR AT
LEAST BE FAMILIAR WITH THEM

MEANWHILE TEXAS RAILROAD COMMISSIONER BARRY WILLIAMSON IS DOING HIS BEST TO
SEE THAT THE PRACTICE SPREADS FURTHER AFTER WATCHING HEDGING DURING A
RECENT TOUR OF THE NEW YORK MERC TRADING FLOOR HE LAUNCHED PLANS TO MAKE AN
EDUCATIONAL MAILING TO ABOUT 8000 TEXANS MOSTLY ENERGY PRODUCERS IN THE
NEXT FEW WEEKS A LOT OF PRODUCERS DON'T KNOW A LOT ABOUT IT OR UNDERSTAND
HOW IT WORKS HE SAYS

BUT THAT'S JUST THE PROBLEM SAY SKEPTICS WHO WARN THAT PEOPLE CAN LOSE
THEIR SHIRTS IF THEY MESS WITH SOME OF THE MORE COMPLICATED HEDGING
TECHNIQUES INDEED THE GERMAN ENGINEERING AND METALS CONGLOMERATE
METALLGESELLSCHAFT AG RECENTLY SAID IT MAY HAVE LOST 1 BILLION IN AN
ENERGYDERIVATIVES TRADING SCHEME

AND EVEN THE MOST BASIC HEDGING TRANSACTION IN WHICH A PRODUCER AGREES TO
SELL A COMMODITY AT TODAY'S PRICE ON A FUTURE DATE THEREBY HEDGING AGAINST
ANY PRICE DROP MAY OFFER SCANT BENEFIT NOW OIL PRICES ARE SO LOW GOES
THE ARGUMENT THERE'S LITTLE DOWNSIDE RISK LEFT

IT'S KIND OF LIKE CLOSING THE BARN DOOR AFTER THE COW HAS GOTTEN OUT SAYS
JOHN J ESSLINGER PRESIDENT OF ENRON'S GAS SERVICES GROUP HE SAYS IT MAKES
MORE SENSE TO HEDGE ON NATURALGAS PRODUCTION WHERE PRICES ARE STILL
RELATIVELY HIGH

THERE ARE DOZENS OF DIFFERENT HEDGES NEARLY ALL OF WHICH ARE DERIVATIVES
OR FINANCIAL INSTRUMENTS WHOSE VALUE IS DERIVED FROM UNDERLYING ASSETS IN
THIS CASE THE PRICE OF CRUDE OIL OR NATURAL GAS SOME ARE TRADED PUBLICLY ON
THE NEW YORK MERC OTHERS ARE OFFERED THROUGH BROKERAGE HOUSES OR
RISKMANAGEMENT PROVIDERS OFTEN THE TRANSACTION TAKES PLACE ONLY ON
PAPER WITH NO ACTUAL DELIVERY

IN THE BEST CASE A HEDGE WORKS LIKE MR PICKENS'S DECISION TO HEDGE HIS
ENTIRE 1986 OIL OUTPUT FOUR MILLION BARRELS BEFORE THE MARKET CRASHED
BY TAKING A SHORT POSITION ON THE FUTURES MARKET WHEN OIL PRICES WERE AT
26 MEANING HE AGREED TO SELL THE COMMODITY AT THAT PRICE AT A LATER DATE
 AND LIQUIDATING HIS POSITION WHEN THEY HIT 16 MESA MADE 30 MILLION

MR PICKENS NOW ARGUES HEDGING ISN'T SPECULATIVE IF YOU DON'T HEDGE THEN
THAT'S SPECULATION

BUT IF ONE'S TIMING ISN'T AS GOOD AS MR PICKENS'S HEDGING CAN BE A COSTLY
WAY TO BUY PRICE INSURANCE AFTER OIL PRICES PLUNGED LAST FALL HENRY
PETROLEUM CO OF MIDLAND SPENT 20000 THROUGH A BROKERAGE FIRM TO BUY A
PRICE FLOOR OF 1450 A BARREL FOR 12000 BARRELS A MONTH OF ITS PRODUCTION
FROM JANUARY TO APRIL SAYS COMPANY PRESIDENT JAMES HENRY BUT THE STRATEGY
HAS DONE LITTLE GOOD SO FAR AS OIL PRICES HAVE MOSTLY RISEN LATELY

GUY FARMER VICE PRESIDENT OF FINANCE AT MIDLAND RESOURCES INC IS MORE
WORRIED ABOUT NATURALGAS PRICES IN ITS FIRST HEDGE THE MIDLAND COMPANY
USED A SWAP THROUGH ENRON TO LOCK IN A PRICE OF 192 A CUBIC FOOT OF GAS
FROM DECEMBER THROUGH APRIL IN THIS SWAP MIDLAND RESOURCES MUST PAY ENRON
FOR EVERY CENT THE PRICE GOES ABOVE THE SET PRICE AND ENRON MUST PAY THE
COMPANY FOR EVERY CENT IT GOES BELOW THE PRICE WE LOOK AT IT AS AN
INSURANCE POLICY TO MAINTAIN MINIMUM CASH FLOW MR FARMER SAYS

BUT GAS PRICES HAVE SINCE JUMPED TO WELL OVER 2 A CUBIC FOOT MIDLAND ISN'T
BENEFITING FROM THE RISE WHILE ITS COMPETITORS WHO DIDN'T HEDGE ARE

PERHAPS A BIGGER DANGER SAYS DAVID HALL A BROKER AT MERRILL LYNCH'S
HOUSTON OFFICE IS THAT PRODUCERS WILL MOVE FROM HEDGING TO SPECULATING
TRADING FREQUENTLY TO GAMBLE ON PRICE SWINGS RATHER THAN BEING CONTENT TO
LOCK IN A PRICE FOR A COMMODITY THEY ACTUALLY PLAN TO SELL THESE
INDEPENDENTS DRILL OIL WELLS FOR A LIVING THEY ARE GAMBLERS AT HEART SAYS
MR HALL WHO SAYS HE HAS UNSUCCESSFULLY TRIED TO PREVENT SEVERAL OF HIS
PRODUCER CLIENTS FROM SPECULATING

ANOTHER PROBLEM INDEPENDENT ENERGY COMPANIES HAVE WITH HEDGING IS CREDIT
MANY HEDGES REQUIRE PRODUCERS TO PUT UP EITHER CASH OR A LETTER OF CREDIT TO
PROVE THEY CAN MEET THEIR OBLIGATIONS IF THE MARKET MOVES AGAINST THEM

THAT FORCES COMPANIES SUCH AS EQUINOX OIL CO OF HOUSTON TO LIMIT THEIR
HEDGING WHEN OIL PRICES JUMPED AFTER IRAQ INVADED KUWAIT IN 1990 EQUINOX
HEDGED HALF ITS CRUDEOIL OUTPUT WITH A SWAP LOCKING IN A PRICE OF 23 A
BARREL FOR 18 MONTHS AND EVENTUALLY REAPING A BIG PROFIT A THREEYEAR DEAL
WOULD HAVE MADE IT MORE BUT IT THOUGHT THE CREDIT DEMANDS WERE TOO HIGH

IF THE SAME OPPORTUNITY AROSE TODAY HOWEVER EQUINOX MIGHT FARE BETTER
BANKS ARE BECOMING MORE WILLING TO OFFER UNSECURED OR SEMISECURED LETTERS
OF CREDIT FOR PRODUCERS THE REASON THE HEDGE MAKES PRODUCERS MORE STABLE
9402230194 940223 TEXAS JOURNAL  HEARD IN TEXAS STUDY SEES
HOMEBUILDING STOCKS LOSING GROUND IN A MARKET SLUMP  BY JEFF D
OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL

DALLAS HOMEBUILDING STOCKS HAVE BEEN HOT FOR MORE THAN A YEAR AND MOST
INDICATORS PORTEND CONTINUED VIGOR BUT IF KATHERINE HENSEL IS RIGHT HOME
BUILDERS COULD GET HAMMERED SOON

WAIT HOME BUILDERS THESE ARE THE COMPANIES THAT OVER THE PAST YEAR WATCHED
THEIR BACKLOGS OF HOMESTOBECONSTRUCTED BALLOON WHILE THEIR EARNINGS
MUSHROOMED ON THE STRENGTH OF A HOMEBUYING SPREE SPURRED BY HISTORICALLY
LOW INTEREST RATES THESE ARE THE COMPANIES WHOSE STOCK PRICES SOARED IN
RESPONSE TO THEIR NEWFOUND EARNINGS SPUNK AND WHICH ARE BASKING IN WHAT ONE
ANALYST RECENTLY LABELED THE GREAT BULL MARKET IN HOUSING

BUT IF YOU FORESEE A MARKET CORRECTION IN WALL STREET'S NEAR FUTURE AS MS
HENSEL DOES YOU MIGHT CONSIDER TAKING A PROFIT IN THESE COMPANIES NOW THE
STRENGTH DEMONSTRATED BY HOME BUILDERS SUCH AS DR HORTON CENTEX AND US
HOME COULD GET THEM NAILED IN A DOWNDRAFT

MS HENSEL CHIEF STRATEGIST FOR EQUITIES AT LEHMAN BROTHERS IN NEW YORK
REACHED HER CONCLUSION AS PART OF A STUDY IN WHICH SHE LOOKED FOR INDUSTRIES
THAT BEST WEATHER A MARKET CORRECTION OF AS MUCH AS 15 THANKS TO THE
FEDERAL RESERVE'S RECENT INCREASE IN SHORTTERM INTEREST RATES MS HENSEL
EXPECTS SUCH A STUMBLE BY SEPTEMBER HER RATIONALE THE TYPE OF INCREASE
THE FED RECENTLY IMPOSED HAS ALWAYS LED TO THIS SORT OF CORRECTION IN THE
PAST

THE STUDY WHICH EXAMINED THE NINE MARKET CORRECTIONS OF 5 OR MORE THAT
HAVE OCCURRED SINCE 1962 BUT THAT WEREN'T FOLLOWED BY A RECESSION FOUND
THAT CERTAIN CYCLICAL INDUSTRIES PARTICULARLY HOTELS SEMICONDUCTORS AND
HOME BUILDERS GET LASHED IN SUCH A SELLOFF OBVIOUSLY HOME BUILDERS'
FUNDAMENTALS HAVE BEEN EXCELLENT IN THE PAST YEAR THAT'S WHY THEIR PRICES
ARE UP MS HENSEL NOTES BUT IN A MARKET CORRECTION THEY DON'T FARE
WELL ACCORDING TO OUR CRITERIA

THOSE CRITERIA INCLUDE TWO MEASURES OF A STOCK'S SUSCEPTIBILITY IN A MARKET
SLUMP THE FIRST IS CALLED BETA WHICH COMPARES A STOCK'S VOLATILITY WITH
THAT OF THE MARKET THE MARKET'S BETA IS 100 WHILE THE HOMEBUILDING
INDUSTRY'S BETA IS 193 MEANING HOME BUILDERS ARE NEARLY TWICE AS VOLATILE
THUS IN A DOWNTURN HOMEBUILDING STOCKS CAN BE EXPECTED TO FALL NEARLY
TWICE AS MUCH AS THE MARKET

THE SECOND MEASURE IS WHAT MS HENSEL LABELS HOT STOCKS SHARES THAT
PERFORMED WELL THE YEAR BEFORE A CORRECTION SUCH STOCKS SHE SAYS
TYPICALLY GET HIT HARD IN A CORRECTION LAST YEAR THE DOW JONES INDEX OF
HOMEBUILDING STOCKS GAINED ABOUT 25 ON AN INDIVIDUAL BASIS DR HORTON
AND CENTEX ARE UP 77 AND 41 RESPECTIVELY FROM THEIR YEARAGO LOWS WHILE
US HOME IS UP 42 SINCE EMERGING FROM BANKRUPTCYLAW PROTECTION LAST
SUMMER

THUS IF MS HENSEL'S STUDY PROVES ACCURATE HOMEBUILDING STOCKS COULD
SKID

OF COURSE HOME BUILDERS HAVE THEIR ADMIRERS ON THE STREET PARTICULARLY
WITH THE FUNDAMENTAL STRENGTH THESE SHARES HAVE SHOWN IN RECENT MONTHS AND
THE FACT THAT THE BUILDERS ARE EXPECTED TO REPORT INCREASED EARNINGS FOR
1994

HOUSTON'S US HOME REPORTS THAT IN THE PAST YEAR ITS BACKLOG OF
HOMESTOBECONSTRUCTED JUMPED 44 THE COMPANY IS CONFIDENT THAT 1994
SHOULD SHOW ANOTHER YEAR OF STRONG PERFORMANCE LIKEWISE AT DR HORTON
IN ARLINGTON MONTHLY NET SALES CONTRACTS HAVE BEEN INCREASING BY HUGE
DOUBLEDIGIT AMOUNTS IN YEARTOYEAR COMPARISONS UP 72 IN JANUARY AND
AT DALLASBASED CENTEX PROFIT FOR THE NINE MONTHS ENDED DEC 31 ROSE 38
FROM A YEAR EARLIER TO 634 MILLION

WITH AFFORDABILITY THE HIGHEST IT'S BEEN IN 20 YEARS WITH AN IMPROVING JOB
BASE AND IMPROVING CONSUMER CONFIDENCE THERE'S GOING TO BE A PROTRACTED
INCREASE IN HOUSING PURCHASES AND HOUSING STARTS FOR THE NEXT TWO TO THREE
YEARS SAYS TIMOTHY L JONES SENIOR VICE PRESIDENT AT SOUTHEAST RESEARCH
PARTNERS IN BOCA RATON FLA WHO HAS REPORTED ON HOUSING TRENDS SINCE 1968

NEVERTHELESS DESPITE THESE STRENGTHS SOME ANALYSTS ARE CUTTING THEIR
EXPOSURE TO THE HOME BUILDERS JUST LAST WEEK PROMINENT HOUSING INDUSTRY
ANALYST BARBARA ALLEN AT DONALDSON LUFKIN & JENRETTE LOWERED HER OPINION OF
DR HORTON TO NEUTRAL FROM MODERATELY ATTRACTIVE NOTING THAT ALTHOUGH
BUSINESS TRENDS REMAIN FAVORABLE WE ARE UNWILLING TO RAISE OUR VALUATION
PARAMETERS IN THE MIDST OF RISING INVESTOR CONCERNS ABOUT THE DIRECTION OF
LONGTERM INTEREST RATES LAST MONTH PRUDENTIAL SECURITIES DOWNGRADED THE
BUILDER TO HOLD

WYATT WILLIAMS PRESIDENT OF THE REGIONAL BROKERAGE FIRM WILLIAMS MACKAY
JORDAN IN HOUSTON CURRENTLY RATES CENTEX NEUTRAL NOTING THAT THE STOCK
HAS HAD A HEALTHY GAIN AND THAT BETTER OPPORTUNITIES ARE AVAILABLE
ELSEWHERE MR WILLIAMS SAYS THAT IF LONGTERM INTEREST RATES BEGIN A STEADY
CLIMB HOME BUILDERS' SHARES WOULD BE VULNERABLE BECAUSE MORTGAGE RATES
TYPICALLY ARE TIED TO LONG BONDS IN SUCH A CASE HE SAYS EARNINGS
EXPECTATIONS FOR THE HOME BUILDERS COULD DROP OFF AS HOUSING PURCHASES
THROTTLE DOWN

EVEN MR JONES RANKS BOTH CENTEX AND DR HORTON AS HOLDS SAYING THEY'RE
TOO EXPENSIVE RELATIVE TO WHAT THEY'RE GOING TO EARN IN 1994 HE RATES US
HOME A BUY BECAUSE IT IS UNDERFOLLOWED AND BASED ON ITS PRICETOEARNINGS
MULTIPLE IS TRADING AT A 20 TO 25 DISCOUNT TO ITS PEERS

HOME BUILDERS ALSO ARE CONFRONTING INFLATIONARY PRESSURES IN THE CEMENT
LUMBER AND WALLBOARD INDUSTRIES ALL OF WHICH ARE RUNNING UP AGAINST
CAPACITY LIMITS AS SUCH COMPANIES IN THESE INDUSTRIES HAVE RAISED PRICES
OR ARE LOOKING TO DO SO WHICH TENDS TO PINCH HOME BUILDERS' PROFIT MARGINS

ONE BRIGHT SPOT IF MS HENSEL IS CORRECT A SELLOFF IN HOME BUILDERS COULD
PROVE AN OPPORTUNE TIME TO BUY SINCE MANY ANALYSTS CONTEND AS MR JONES
DOES THAT HOUSING TRENDS SHOULD BOLSTER PROFITS FOR THE NEXT FEW YEARS

ALAMO GROUP THE SEGUIN MAKER OF GROUNDMAINTENANCE EQUIPMENT TRADED FOUR
TIMES ITS AVERAGE VOLUME AND GAINED 325 OR 20 ON NEWS OF STRONGER
EARNINGS FOR THE FOURTH QUARTER ALAMO REPORTED PROFIT OF 13 MILLION OR
16 CENTS A SHARE UP FROM 943000 OR 16 CENTS A SHARE A YEAR EARLIER

OPTICAL DATA SYSTEMS SURGED MORE THAN 30 TO 14 AFTER REPORTING
STRONGERTHANEXPECTED PROFIT THE RICHARDSON MAKER OF COMPUTERNETWORKING
PRODUCTS HAD FOURTHQUARTER PROFIT OF 19 MILLION OR 23 CENTS A SHARE
COMPARED WITH 17 MILLION OR 21 CENTS A SHARE A YEAR EARLIER ANALYSTS
HAD PROJECTED 14 CENTS

ALTHOUGH DUAL DRILLING JUMPED 11 NATWEST SECURITIES LOWERED ITS RATING OF
THE COMPANY TO ACCUMULATE FROM BUY NATWEST SAID THE CURRENT ENVIRONMENT
WILL MAKE IT DIFFICULT FOR THE STOCK TO OUTPERFORM THE MARKET TO ANY LARGE
DEGREE LAST WEEK DUAL ALSO REPORTED FOURTHQUARTER EARNINGS OF 18
MILLION OR 11 CENTS A SHARE COMPARED WITH A LOSS OF 300000 LAST YEAR
NATWEST HAD ESTIMATED SEVEN CENTS A SHARE

AN INVESTMENT GROUP INCLUDING DALLAS'S GHS MANAGEMENT REPORTED IN A
SECURITIES AND EXCHANGE COMMISSION FILING THAT IT HAS ACCUMULATED A ROUGHLY
75 STAKE IN BABBAGE'S THE DALLAS COMPUTERSOFTWARE CHAIN THE GROUP
PURCHASED ABOUT 404500 SHARES BETWEEN JAN 4 AND FEB 8 AT PRICES RANGING
FROM 11125 TO 11628 FOR THE WEEK BABBAGE'S FELL 8 TO 1125
9402230192 940223 GANDALF TO ELIMINATE 300 JOBS

OTTAWA GANDALF TECHNOLOGIES INC WHICH HAS REPORTED HEAVY LOSSES AND
DECLINING SALES SAID IT WILL ELIMINATE 300 JOBS MAINLY IN NORTH AMERICA

THE CUTBACK WILL REDUCE GANDALF'S WORK FORCE TO 1000 THE REDUCTIONS WILL
INVOLVE JOBS IN MANUFACTURING ADMINISTRATION AND SALES SUPPORT

GANDALF A PRODUCER OF COMMUNICATIONS NETWORK EQUIPMENT HAS RETAINED WOOD
GUNDY INC A TORONTOBASED INVESTMENT CONCERN TO EXPLORE POSSIBLE
STRATEGIC ALLIANCES TO ACCELERATE THE RETURN TO PROFITABILITY GANDALF
REPORTED A NET LOSS OF 1108 MILLION ON REVENUE OF 995 MILLION IN THE
FISCAL NINE MONTHS ENDED JAN 1 9402230191 940223 TEXAS JOURNAL  
ECONOMIC FOCUS  CHEER UP DALLAS YOU'RE HEALTHIER THAN YOU LOOK 
 BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL

DALLAS IT'S STARTING TO LOOK AS IF BIG D COULD BE THE BIG STAR OF THE
TEXAS ECONOMY THIS YEAR

THAT MAY SOUND A BIT ODD PARTICULARLY FOR A TOWN HIT BY A RAFT OF
HIGHPROFILE CORPORATE LAYOFFS AND CUTBACKS IN DEFENSE SPENDING BUT THE
DALLAS AREA HAS EMERGED AS A SIGNIFICANT JOBS PRODUCER IN RECENT MONTHS
CONSTRUCTION IS SURGING TRADE IS HUMMING AND THE UNEMPLOYMENT RATE HAS
DROPPED SHARPLY

AND THAT MAY BE JUST THE BEGINNING AFTER RACKING UP 29750 NEW JOBS IN
1993 THE SIXCOUNTY AREA IS EXPECTED TO ADD AT LEAST 37000 MORE THIS YEAR
OR 26 ACCORDING TO AN AVERAGE FORECAST BY SIX AREA ECONOMISTS

AND EVEN THAT COULD PROVE PESSIMISTIC

I THINK DALLAS IS POTENTIALLY A SLEEPING GIANT SAYS KEITH PHILLIPS AN
ECONOMIST WITH THE FEDERAL RESERVE BANK OF DALLAS MR PHILLIPS FORECASTS
27 JOB GROWTH BUT SAYS HE WOULDN'T BE SURPRISED TO SEE EMPLOYMENT LEAP BY
AS MUCH AS 4 OR 57000 THIS YEAR

DALLAS IS FIXING TO GROW FASTER THAN ANYWHERE ELSE WITH THE POSSIBLE
EXCEPTION OF AUSTIN ADDS JON HOCKENYOS MANAGING PARTNER OF TEXAS
PERSPECTIVES INC AUSTIN WHO EXPECTS THE JOB GROWTH IN DALLAS TO REACH 3

TO BE SURE EVERYTHING ISN'T ROSY BIG COMPANIES SUCH AS TEXAS UTILITIES
CO HAVE BEEN RELENTLESSLY DOWNSIZING THEIR DALLAS HEADQUARTERS DEFENSE
CONTRACTING WHILE NOT AS IMPORTANT TO THE DALLAS ECONOMY AS IT IS TO FORT
WORTH'S HAS TAKEN SOME BODY BLOWS AND THE FINANCIALSERVICES AND
REALESTATE SECTOR ONCE THE CITY'S CENTERPIECE HAS ABOUT 12000 FEWER
JOBS THAN IT DID AT THE PEAK IN 1986

WHAT'S MORE THE CENTRAL BUSINESS DISTRICT REMAINS ONE OF THE SICKEST IN THE
NATION WITH OVER A THIRD OF ITS OFFICE SPACE NOW VACANT AND LITTLE TO
SUGGEST A QUICK TURNAROUND

SO WHY IS THE OUTLOOK SUDDENLY SO OPTIMISTIC

THE ANSWER ISN'T SIMPLE IT'S HARD SOMETIMES TO DESCRIBE WHAT'S CAUSING THE
UNDERLYING STRENGTH BECAUSE IT'S NOT ONE OR TWO INDUSTRIES SAYS MR
PHILLIPS YOU'VE GOT TO COME BACK TO THE LOW COST OF DOING BUSINESS THE
CENTRAL LOCATION AND HIGH QUALITY OF THE WORK FORCE

SUCH FACTORS MADE DALLAS THE LEADING SPOT IN THE NATION FOR NEW CORPORATE
FACILITIES AND EXPANSIONS IN 1993 ACCORDING TO THE MOST RECENT ISSUE OF
SITE SELECTION MAGAZINE THE DALLAS AREA BOASTED 188 NEW FACILITIES THAT
EITHER INVOLVED AN INVESTMENT OF 1 MILLION CREATED AT LEAST 50 NEW JOBS
OR RESULTED IN AN INCREASE OF AT LEAST 20000 SQUARE FEET OF REAL ESTATE
THE TRADE PUBLICATION REPORTED EDGING OUT CHARLOTTE NC AND CLEVELAND

HERE ARE SOME OTHER REASONS THE OUTLOOK IS BRIGHT FOR DALLAS THIS YEAR

 DALLAS IS DIVERSIFIED HOUSTON'S A ONETRICK ECONOMY THAT HAS SUFFERED
FROM THE DECLINE IN OIL PRICES WHILE DALLAS ISN'T THAT SINGULARLY
DIMENSIONED SAYS GERALD HIGGINS AN ECONOMIST WITH THE TEXAS COMPTROLLER'S
OFFICE NOTING THAT INDUSTRIES SUCH AS TELECOMMUNICATIONS ARE SURGING IN THE
CITY

 SMALL BUSINESS IS COOKING GROWTH OF SMALLER ENTERPRISES IS STARTING TO
KICK INTO HIGH GEAR EVEN THOUGH IT MAY BE FLYING UNDER THE RADAR RIGHT NOW
FOR INSTANCE THREEMONTHOLD COMPUTER DIRECTIONS INC A TEMPORARYHELP
AGENCY OFFERING THE SERVICES OF COMPUTER PROFESSIONALS IS ADDING TWO PEOPLE
A WEEK TO ITS PAYROLL INCLUDING MANY WHO HAVE BEEN LAID OFF BY BIGGER
COMPANIES

 CONSTRUCTION IS ON A ROLL FEW THINGS PROPEL AN ECONOMY LIKE BUILDING
PROJECTS AND DALLAS HAS THEM IN SPADES CONSTRUCTION JOBS ARE UP 9 OVER
LAST YEAR COMPARED WITH A 2 JUMP FOR THE STATE AS A WHOLE HOME BUILDING
IS LEADING THE REBOUND AND 1994 NEWHOME SALES COULD BE WITHIN 10 OR 15
OF THE ALLTIME HIGH IN 1986 PREDICTS RON WITTEN PRESIDENT OF M/PF
RESEARCH INC A DALLAS REALESTATE CONSULTING FIRM

 NAFTA ALTHOUGH IT'S TOO SOON TO SEE MUCH REAL EFFECT FROM THE NORTH
AMERICAN FREE TRADE AGREEMENT DALLAS ALREADY IS ENJOYING THE PSYCHOLOGICAL
BENEFITS ONE BIG BOOST THE CITY HAS REPORTEDLY BEEN CHOSEN TO HOST THE
NAFTA LABOR SECRETARIAT WHICH WILL OVERSEE THE ACCORD'S LABOR ASPECTS

 INTERSTATE TRADE AS THE TRANSPORTION AND TRADE HUB FOR THE SOUTHWEST
DALLAS IS THE REGIONAL CENTER FOR A REGION THAT'S DOING VERY WELL SAYS M
RAY PERRYMAN PRESIDENT OF PERRYMAN CONSULTANTS INC WACO

NOW THE BIG PICTURE EMPLOYMENT IN THE SOUTHWEST WILL LIKELY GROW BETWEEN
2 AND 25 THIS YEAR ACCORDING TO NEW PROJECTIONS BY THE FEDERAL RESERVE
BANK OF DALLAS THAT'S BETTER THAN THE RATE PROJECTED FOR THE US AS A
WHOLE ALTHOUGH IT'S ONLY A MARGINAL IMPROVEMENT OVER THE GROWTH RATE
REGISTERED IN THE SOUTHWEST LAST YEAR

OF THE THREE STATES TRACKED BY THE FED NEW MEXICO HAS THE HOTTEST
PROSPECTS THANKS TO HIGHTECH BUSINESS EXPANSIONS AND RELOCATIONS AND WILL
LIKELY NOTCH 3 JOB GROWTH

TEXAS IS EXPECTED TO COME IN SECOND WITH 22 EMPLOYMENT GROWTH AND
BROADBASED GROWTH ACROSS MOST INDUSTRIES

BRINGING UP THE REAR LOUISIANA IS LIKELY TO SEE JUST A 11 INCREASE IN
JOBS BECAUSE OF ITS HEAVY DEPENDENCE ON THE ENERGY SECTOR LOUISIANA'S ONE
BRIGHT SPOT THE CONSTRUCTION AND OPENING OF CASINOS THE FED NOTES
9402230190 940223 DELTA AIR BWIA INTERNATIONAL

ATLANTA DELTA AIR LINES SAID IT SIGNED A LETTER OF INTENT WITH BWIA
INTERNATIONAL AIRWAYS OF TRINIDAD TO PURSUE EXPANDING THE TWO CARRIERS'
BUSINESS RELATIONSHIPS IN THE US AND THE CARIBBEAN

IF DEFINITIVE AGREEMENTS ARE REACHED THE TWO AIRLINES WOULD COOPERATE ON
SUCH MATTERS AS FARES AND SCHEDULES COORDINATION FACILITIES USAGE
PASSENGER AND CARGO HANDLING AND JOINT MARKETING PROGRAMS DELTA SAID THE
COMPANIES SET NO TIMETABLE FOR REACHING DEFINITIVE AGREEMENTS 9402230189
940223 WHO'S NEWS ROADMASTER INDUSTRIES INC

ROADMASTER INDUSTRIES INC ENGLEWOOD COLO STEPHEN P BRADLEY 52
YEARS OLD SENIOR ASSOCIATE DEAN FOR FACULTY DEVELOPMENT AT HARVARD BUSINESS
SCHOOL WAS NAMED TO THE BOARD OF THE MAKER OF BICYCLES AND FITNESS
EQUIPMENT PROF BRADLEY'S APPOINTMENT INCREASES THE BOARD'S SIZE TO FIVE
9402230187 940223 WHAT'S NEWS  BUSINESS AND FINANCE

THE FEDERAL RESERVE IS LIKELY TO RAISE SHORTTERM INTEREST RATES AGAIN
GREENSPAN TOLD CONGRESS BUT THE AMOUNT AND TIMING OF SUCH AN INCREASE HINGE
ON MARKET EXPECTATIONS ABOUT INFLATION HE PLAYED DOWN FEARS THAT THE US
ECONOMY IS GROWING SO FAST THAT IT THREATENS TO OVERHEAT WAGES DON'T SEEM
TO BE ACCELERATING GREENSPAN ADDED AND PRODUCTIVITY GAINS ARE HOLDING DOWN
LABOR COSTS

STOCK AND BOND PRICES JUMPED AMID RELIEF THAT THE FED CHAIRMAN DIDN'T UNVEIL
ANY UNPLEASANT SURPRISES THE DOW JONES INDUSTRIAL AVERAGE GAINED 2420 TO
391166 GOLD FUTURES PRICES FELL AFTER GREENSPAN POINTED TO GOLD AS A VERY
GOOD INDICATOR OF INFLATION

THE FCC VOTED UNANIMOUSLY TO REQUIRE WHAT AMOUNTS TO A 7 REDUCTION IN
CABLETV RATES A 10 CUT THAT THE AGENCY ORDERED LAST YEAR ACTUALLY LED TO
HIGHER BILLS FOR SOME CUSTOMERS THE FCC ESTIMATES THAT THIS TIME ABOUT 90
OF THE 11000 CABLE SYSTEMS NATIONWIDE WILL BE REQUIRED TO CUT PRICES

BEVERLY ENTERPRISES AND COLUMBIA/HCA ARE DISCUSSING JOINT VENTURES IN
CERTAIN MARKETS SUCH A MOVE WOULD MARK ONE OF THE FIRST MAJOR ALLIANCES
BETWEEN A LONGTERM HEALTHCARE PROVIDER AND A FORPROFIT HOSPITAL CHAIN

DEMOCRATS IN CONGRESS ARE CONSIDERING A PLAN THAT WOULD EXEMPT SMALL
BUSINESSES FROM CLINTON'S PROPOSED REQUIREMENT THAT EMPLOYERS HELP PAY FOR
THEIR WORKERS' HEALTH INSURANCE

CYRUS R VANCE WAS NAMED A MEDIATOR IN THE MACY BANKRUPTCY REORGANIZATION
PROCESS BUT THE APPOINTMENT OF THE FORMER SECRETARY OF STATE MAY DERAIL
TALKS UNDER WAY BETWEEN THE RETAILER GE CAPITAL AND FIDELITY

COMMERCE SECRETARY BROWN IS RECOMMENDING CHANGES TO SENATE LEGISLATION THAT
COULD HASTEN COMPETITION IN THE CABLE AND TELEPHONE INDUSTRIES

THE FDIC SAID THE FUND THAT INSURES BANK DEPOSITS HAD A BALANCE OF 131
BILLION AT THE END OF 1993 COMPARED WITH A DEFICIT AT YEAREND 1992

DEERE REPORTED FISCAL FIRSTQUARTER EARNINGS SUBSTANTIALLY HIGHER THAN WALL
STREET'S EXPECTATIONS SENDING ITS STOCK UP 525 OR 68 TO 8250

SOME JAPANESE POLITICAL AND BUSINESS LEADERS ARE CALLING FOR A COMPROMISE TO
AVOID A TRADE WAR WITH THE US INCLUDING SETTING NONBINDING IMPORT GOALS
TO NARROW JAPAN'S SURPLUS

THE CONFERENCE BOARD'S INDEX OF CONSUMER CONFIDENCE SLIPPED TO 808 THIS
MONTH FROM 826 IN JANUARY

THORN EMI SAID AN INVESTIGATION IT COMMISSIONED DISPUTED KEY ALLEGATIONS
MADE IN A WALL STREET JOURNAL ARTICLE ABOUT ITS RENTACENTER UNIT

FORD MOTOR IS REEVALUATING ITS PLAN TO KILL ITS AEROSTAR MINIVAN AFTER
SALES HIT A RECORD PACE IN 1993

SHORT INTEREST ROSE TO A RECORD ON THE BIG BOARD CLIMBING 37 TO 132
BILLION SHARES IN MIDFEBRUARY

IBM SAID CANON AGREED TO BE ITS FIRST PARTNER TO DEVELOP A LINE OF PRODUCTS
BASED ON ITS POWERPC CHIP

BONDS LEHMAN BROTHERS TREASURY INDEX 545445 UP 2011

COMMODITIES OIL 1424 A BARREL UP 3 CENTS DOW JONES FUTURES INDEX
14609 OFF 022 SPOT INDEX 13143 UP 045

DOLLAR 10565 YEN UP 105 17235 MARKS UP 00095 9402230186 940223
TEXAS JOURNAL  RICHARD RAINWATER'S PLANNED REIT HAS ONE BIG
ATTRACTION RICHARD RAINWATER  BY TARA PARKERPOPE STAFF REPORTER
OF THE WALL STREET JOURNAL

FORT WORTH SO WHAT DOES RICHARD RAINWATER KNOW ABOUT REAL ESTATE

WE'LL SOON FIND OUT LAST WEEK MR RAINWATER WHO MADE MILLIONS FOR HIMSELF
AND FORT WORTH'S BASS BROTHERS FROM INVESTMENTS IN THE ENTERTAINMENT
HEALTHCARE AND OIL AND GAS INDUSTRIES UNVEILED A LONGAWAITED AND
UNUSUAL 334 MILLION OFFERING FOR A REALESTATE INVESTMENT TRUST

FOR MR RAINWATER THE REIT IS A GAMBLE THAT HIS GOLDEN TOUCH WILL EXTEND TO
AN ENTIRELY NEW INVESTMENT AREA IT'S ALSO A GAMBLE ON TEXAS ALL BUT ONE OF
THE PROPERTIES IS IN THE DALLASFORT WORTH OR HOUSTON AREA THE EXCEPTION
A COLORADO OFFICE BUILDING

IF SUCCESSFUL THE PROPOSAL TO TAKE CRESCENT REAL ESTATE EQUITIES INC
PUBLIC WILL WIPE OUT 275 MILLION OF DEBT ON THE PROPERTIES 111 MILLION OF
WHICH IS PERSONALLY GUARANTEED BY MR RAINWATER AND LEAVE THE FORT WORTH
MILLIONAIRE WITH 20 OF THE COMPANY'S STOCK VALUED AT 1005 MILLION AS
PART OF THE TRANSACTION MR RAINWATER WHO HAS AGREED TO SERVE AS CHAIRMAN
OF THE NEW COMPANY WILL THROW IN 10 MILLION OF HIS OWN MONEY TO ACQUIRE
400000 SHARES AT THE 25 PER SHARE INITIAL OFFERING PRICE

THE DEAL ALSO INCLUDES A 300 MILLION LINE OF CREDIT FOR THE TRUST TO PURSUE
OTHER REALESTATE INVESTMENTS

THE PROPERTY IN THE REIT INCLUDES CONTINENTAL PLAZA A FORT WORTH OFFICE
BUILDING THAT A RAINWATER PARTNERSHIP PURCHASED FROM RAY HUNT IN ADDITION
ROSEWOOD PROPERTY CO THE REALESTATE OPERATION CONTROLLED BY CAROLINE ROSE
HUNT IS CONTRIBUTING ITS LAS COLINAS CENTER IN IRVING AND CITADEL OFFICE
BUILDING IN DENVER AND ITS CRESCENT OFFICE AND RETAIL COMPLEX WHICH IS
OWNED BY A ROSEWOODRAINWATER PARTNERSHIP IN EXCHANGE ROSEWOOD WILL
RECEIVE ABOUT 6 OF THE COMPANY'S STOCK VALUED AT AN ESTIMATED 305
MILLION

FOR INVESTORS THE ATTRACTION OF THE REIT IS SIMPLE THEY GET A PIECE OF MR
RAINWATER WHOSE HIGHLY SUCCESSFUL INVESTMENT PICKS HAVE INCLUDED SUCH
COMPANIES AS WALT DISNEY CO AND FORT WORTH'S COLUMBIA HEALTH CARE CORP

IS HE A REALESTATE GENIUS NO SAYS RONALD STEINHART PRESIDENT AND CHIEF
OPERATING OFFICER OF BANK ONE TEXAS DALLAS BUT I DIDN'T THINK HE WAS AN
ENTERTAINMENT GENIUS WHEN HE BOUGHT DISNEY OR AN OIL AND GAS GENIUS WHEN HE
BOUGHT TEXACO OR A HEALTHCARE GENIUS WHEN HE BOUGHT COLUMBIA HE'S JUST A
REAL SMART GUY WHO DOES HIS HOMEWORK

PERHAPS BUT SOME REALESTATE ANALYSTS ARE DUBIOUS ABOUT MR RAINWATER'S NEW
VENTURE THAT'S IN PART BECAUSE OF MR RAINWATER'S LACK OF REALESTATE
EXPERIENCE BUT THE DEAL ITSELF THESE SKEPTICS SAY HAS SOME TROUBLING
ASPECTS

IT HAS A COUPLE OF UNUSUAL CHARACTERISTICS ABOUT IT THAT MAY WELL TURN OUT
TO BE HANDICAPS SAYS JON FOSHEIM A PRINCIPAL AT GREEN STREET ADVISORS A
NEWPORT BEACH CALIF INSTITUTIONAL RESEARCH FIRM

FOR ONE THING MOST SUCCESSFUL VENTURES TEND TO FOCUS ON ONE TYPE OF REAL
ESTATE BUT MR RAINWATER'S PLAN INCLUDES FIVE OFFICE PROJECTS ONE RETAIL
CENTER AND THREE RESIDENTIAL DEVELOPMENTS THERE ARE ALMOST NO SUCCESSFUL
REITS THAT WE KNOW OF THAT ARE MULTIASSET MR FOSHEIM SAYS

THE SMALL NUMBER OF PROPERTIES IN THE REIT ALSO TROUBLES ANALYSTS BECAUSE
THE CREDIT LINE WILL BE USED TO BUY MORE PROPERTIES INVESTORS ARE PRETTY
MUCH BEING ASKED TO BUY INTO A BLIND POOL

IT'S SORT OF A TRUST ME YOU GIVE ME THE CASH AND I'LL FIND THE
OPPORTUNITY' SAYS JOHN PATTILLO A PRINCIPAL IN PENOBSCOT GROUP INC A
BOSTON REALESTATE STOCK RESEARCH FIRM

ALTHOUGH MR PATILLO SAYS THAT MR RAINWATER'S REPUTATION GIVES THE OFFERING
A GOOD CHANCE OF SUCCEEDING HE BELIEVES THAT HIS CLIENTS MOSTLY
INSTITUTIONAL INVESTORS WILL STAY OUT OF THE DEAL

IT'S AN OFFERING THAT MANY TRADITIONAL REIT INVESTORS WILL CLEARLY TAKE A
PASS ON SAYS MR PATTILLO THE NEGATIVE CONNOTATIONS ASSOCIATED WITH EVEN
A PARTIALLY BLIND POOL ARE TOO GREAT AND PEOPLE'S STOMACHS WON'T BE STRONG
ENOUGH

ANOTHER CONCERN OF ANALYSTS TIMING

LAST FALL NEW REIT OFFERINGS WERE THE HOTTEST THING GOING ON WALL STREET
FORMED TO OPERATE AND ACQUIRE REALESTATE ASSETS REITS DON'T PAY CORPORATE
TAXES AS LONG AS THEY DISTRIBUTE 95 OF THEIR TAXABLE INCOME IN DIVIDENDS
TO SHAREHOLDERS

CRESCENT REAL ESTATE OFFICIALS SAY SECURITIES AND EXCHANGE COMMISSION RULES
PROHIBIT EXTENSIVE COMMENT ON THE DEAL BUT THE COMPANY'S PRESIDENT GERALD
HADDOCK DISPUTES THE COMPARISON TO A BLIND POOL AND SAYS THE COMPANY SEES
AN ADVANTAGE IN THE DIVERSITY OF PROPERTIES

THE HANDS ARE NOT GOING TO BE TIED TO DO ONLY CERTAIN TYPES OF DEALS SAYS
MR HADDOCK THE STRENGTH OF THIS TRANSACTION COUPLED WITH A PREMIER
PORTFOLIO IS THE ABILITY TO BE UNLEVERAGED AND UTILIZE A LINE OF CREDIT TO
CONTINUE THE RAINWATER OPPORTUNISTIC APPROACH TO STRATEGIC REALESTATE
ACQUISITIONS

IN AN INTERVIEW LAST AUGUST MR RAINWATER SAID HE IS CONVINCED HIS PLAN 
GUIDED BY A PHILOSOPHY THAT TEXAS IS A GOOD PLACE TO PUT HIS MONEY NOW 
WILL WORK IT'S HARD NOT TO BE ENTHUSIASTIC ABOUT IT BECAUSE I'M SPENDING
MY OWN MONEY MR RAINWATER SAID I THINK IT'S ONE OF THE BEST IDEAS I'VE
EVER RUN ACROSS MR RAINWATER SAID

CRESCENT OFFICIALS LEAVE OPEN THE POSSIBILITY THAT THE TRUST WILL INVEST IN
PLACES OTHER THAN TEXAS PARTICULARLY IN THE SOUTHWEST ACCORDING TO THE
COMPANY'S PROSPECTUS THE REIT ALSO MAY MAKE REALESTATE INVESTMENTS IN
INDUSTRIES IN WHICH MR RAINWATER HAS EXPERIENCE SUCH AS HEALTH CARE AND
OIL AND GAS

WHETHER MR RAINWATER WILL HAVE THE SAME LUCK IN REAL ESTATE AS HE HAS WITH
PREVIOUS INVESTMENTS REMAINS TO BE SEEN BUT EVEN SKEPTICS DON'T DISMISS
HIM

I WOULD NEVER UNDERESTIMATE HIS ABILITIES SAYS GREEN STREET'S MR
FOSHEIM HE'S MADE A LOT MORE MONEY THAN YOU AND I EVER WILL 9402230184
940223 SA HOLDINGS WINS RUSSIAN PACT

PLANO TEXAS SA HOLDINGS INC SAID IT RECEIVED AN EXCLUSIVE AUTHORIZATION
AND LICENSE FROM THE RUSSIAN GOVERNMENT TO PUBLISH AND DISTRIBUTE REFERENCE
BOOKS ON RUSSIAN PARLIAMENT MEMBERSHIP OTHER GOVERNMENTAL MEMBERSHIP AND
EXECUTIVEBRANCH COMMITTEES

THE COMPANY SAID THE INFORMATION WILL BE PUBLISHED IN RUSSIAN AND ENGLISH
REFERENCE BOOKS AND DISTRIBUTED PRIMARILY TO GOVERNMENTAL OFFICES
UNIVERSITIES AND LAW FIRMS AROUND THE WORLD

SA HOLDINGS THROUGH ITS BALTIC STATES AND CIS VENTURES UNIT WILL PUBLISH
AND DISTRIBUTE THE BOOKS AND WILL PARTICIPATE WITH CERTAIN RUSSIAN
GOVERNMENTAL AGENCIES IN ROYALTIES GENERATED BY THE SALES 9402230183
940223 WHO'S NEWS TYCO INTERNATIONAL LTD

TYCO INTERNATIONAL LTD EXETER NH VINCENT R GATTO 56 YEARS OLD
WAS NAMED VICE PRESIDENT OF THIS FIRE PROTECTION FLOW CONTROL AND PACKAGING
CONCERN HE WAS MOST RECENTLY DIRECTOR OF THE COMPANY'S FLOW CONTROL
MANUFACTURING AND DISTRIBUTION OPERATION FOR THE ASIA PACIFIC REGION IN
SYDNEY AUSTRALIA HIS NEW RESPONSIBILITIES WILL INCLUDE GLOBAL SUPPLY AND
MANUFACTURING STRATEGIES AS WELL AS ACQUISITION REVIEWS TYCO SAID
9402230182 940223 AMERICAN FINANCIAL INTENDS TO REFINANCE 5487
MILLION DEBT

CINCINNATI AMERICAN FINANCIAL CORP ANNOUNCED PLANS TO REFINANCE ITS
5487 MILLION DEBT IN ORDER TO REDUCE ITS INTEREST EXPENSE AND EXTEND THE
TIME REQUIRED TO REPAY ITS DEBT

UNDER TERMS OF THE PLAN THE COMPANY SAID IT WOULD EXCHANGE NEW 95
DEBENTURES DUE APRIL 20 2004 FOR ALL OF ITS DEBENTURES OUTSTANDING THE
CLOSELY HELD COMPANY WHICH HAS INTERESTS IN PROPERTY AND CASUALTY
INSURANCE ANNUITY PROGRAMS AND PORTFOLIO INVESTING SAID THE EXCHANGE OFFER
EXPIRES MARCH 25 AT 5 PM EST

FOLLOWING THE OFFER THE COMPANY SAID IT WILL REDEEM AS MANY DEBENTURES AS
ITS RESOURCES ALLOW THE NEW DEBENTURES WILL RETAIN THE SAME PRINCIPAL
AMOUNT AND HOLDERS WILL RECEIVE A 2 CASH PREMIUM FOR EACH 1000 IN
DEBENTURES EXCHANGED

THE FOLLOWING DEBENTURES QUALIFY FOR THE EXCHANGE OFFER 95 SUBORDINATED
DEBENTURES DUE APRIL 22 1999 10 DEBENTURES DUE OCT 20 1999 10
DEBENTURES DUE OCT 20 1999 SERIES A 12 DEBENTURES DUE SEPT 3 1999
12 DEBENTURES DUE SEPT 3 1999 SERIES A AND SERIES B 1225 DEBENTURES
DUE SEPT 15 2003 135 DEBENTURES DUE SEPT 14 2004 AND 135
DEBENTURES DUE SEPT 15 2004 SERIES A

THE 1225 DEBENTURES DUE 2003 ARE REDEEMABLE AT 10375 OF PRINCIPAL
AMOUNT ALL OTHER ISSUES OF OLD DEBENTURES ARE REDEEMABLE AT PRINCIPAL
AMOUNT

ALL REGULAR SEMIANNUAL INTEREST PAYMENTS DUE IN MARCH AND APRIL 1994 WILL BE
PAID ON THE OLD ISSUES OF DEBENTURES CURRENTLY OUTSTANDING INCLUDING THOSE
TENDERED AND ACCEPTED FOR EXCHANGE 9402230181 940223 RIVAL CO MAKES
ACQUISITION

KANSAS CITY MO RIVAL CO SAID IT HAS PURCHASED THE ASSETS OF WHITE
MOUNTAIN FREEZER INC A CONSUMERPRODUCTS MANUFACTURER BASED IN WINCHENDON
MASS FOR 23 MILLION 9402230180 940223 CONFIDENCE FALLS FOR
CONSUMERS SURVEY SHOWS  BY DAVID MULHOLLAND STAFF REPORTER OF
THE WALL STREET JOURNAL

WASHINGTON THE CONFERENCE BOARD'S INDEX OF CONSUMER CONFIDENCE SLIPPED A
BIT THIS MONTH IN THE FACE OF BAD WEATHER AND RISING INTEREST RATES

ALTHOUGH STILL 20 POINTS HIGHER THAN IT WAS IN OCTOBER THE INDEX FELL TO
808 FROM A REVISED 826 IN JANUARY

I DON'T THINK IT'S A SIGNIFICANT DECLINE AFTER THE WHOPPING BIG IMPROVEMENT
SINCE OCTOBER SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE
BUSINESSRESEARCH ORGANIZATION MR LINDEN DISCOUNTED THE DROP AS TOO SMALL
TO HAVE ANY REAL MEANING

CONSUMERS' ATTITUDES ABOUT THEIR PRESENT SITUATION BRIGHTENED ACCORDING TO
THE BOARD'S SURVEY WHILE EXPECTATIONS FOR THE FUTURE DIMMED EXPECTATIONS
HAVE REMAINED SIGNIFICANTLY HIGHER THAN FEELINGS ABOUT THE PRESENT FOR THE
PAST YEAR BUT THE GAP HAS NARROWED IN THE PAST FEW MONTHS

THE SURVEY OF 5000 HOUSEHOLDS CONDUCTED FOR THE BOARD BY NATIONAL FAMILY
OPINION INDICATED CONSUMER CONFIDENCE FELL IN MANY AREAS OF THE COUNTRY
WITH NEW ENGLAND TAKING THE BIGGEST PLUNGE 190 POINTS TO 508
CONFIDENCE ROSE IN THE STATES WEST OF THE MISSISSIPPI AND EAST OF THE
PACIFIC COAST STATES THE MOUNTAIN REGION GAINED MOST POSTING AN 115POINT
INCREASE TO 1183

MIRRORING THE CONSUMER CONFIDENCE INDEX THE WEATHER WAS UNUSUALLY SEVERE IN
NEW ENGLAND AND MILDER THAN NORMAL IN THE MOUNTAIN STATES IT'S HARD TO BE
OPTIMISTIC WHILE WALKING THROUGH THE SLUSH SAID ROBERT DEDERICK CHIEF
ECONOMIST FOR NORTHERN TRUST CO

ECONOMISTS ALSO SAID HIGHER INTEREST RATES MIGHT BE HAVING AN EFFECT ON
CONSUMER CONFIDENCE HOW MUCH IS LEAKY GALOSHES AND HOW MUCH IS RISING
INTEREST RATES WE WILL HAVE TO WAIT FOR GOOD WEATHER TO TELL MR DEDERICK
SAID

DESPITE THE SMALL DROP IN CONFIDENCE CONSUMER SPENDING ISN'T EXPECTED TO
FLAG SANDRA SHABER AN ECONOMIST WITH THE WEFA GROUP IN SUBURBAN
PHILADELPHIA SAID CONSUMER CONFIDENCE AND CONSUMER SPENDING ARE NOT VERY
RELATED SHE EXPECTS REAL OR INFLATIONADJUSTED CONSUMER SPENDING TO
INCREASE BETWEEN 3 AND 35 IN 1994

PRESAGING THE CONFERENCE BOARD'S PERFORMANCE THE UNIVERSITY OF MICHIGAN'S
CONSUMERSENTIMENT INDEX FOR THE BEGINNING OF FEBRUARY FELL 14 POINTS TO
943 9402230179 940223 MORTON GETS NISSAN ORDER

CHICAGO MORTON INTERNATIONAL INC SAID IT RECEIVED A CONTRACT FROM NISSAN
MOTOR CO TO SUPPLY AIRBAG INFLATORS FOR THE JAPANESE AUTO MARKET TERMS
WEREN'T DISCLOSED

MORTON SAID IT WILL PROVIDE MINIINFLATORS FOR THE DRIVERSSIDE MINIBAG
BEGINNING IN THE MODEL YEAR 1995 THE MINIBAG HAS A SMALLER SURFACE AREA
THAN CONVENTIONAL AIRBAGS USED IN THE US AND EUROPE 9402230178 940223
ACQUISITIONS AT US EXPLORATION

INDEPENDENCE KAN US EXPLORATION INC SAID IT ACQUIRED TWO CLOSELY
HELD KANSAS COMPANIES FOR ABOUT 23 MILLION IN CASH AND COMMON STOCK

THE OIL AND NATURALGAS COMPANY SAID PRODUCERS SERVICE INC A NATURALGAS
GATHERER AND MARKETER AND TL CARROLL ENTERPRISES INC A GAS AND OIL
EXPLORATION AND DEVELOPMENT COMPANY WERE ACQUIRED AS WHOLLY OWNED
SUBSIDIARIES 9402230177 940223 YIELDS ON CDS ROSE SLIGHTLY IN LATEST
WEEK

NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE
FIRMS GENERALLY ROSE A BIT IN THE WEEK ENDED YESTERDAY

THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS CREPT UP TO
283 FROM 282 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE
AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 454 THE WILMINGTON
DEL INFORMATION SERVICE SAID

THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EDGED UP TO 321 FROM
317 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 452 FROM
444 THE SURVEY SAID

ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF
95000 AND MORE THE AVERAGE YIELD ON SIXMONTH CERTIFICATES INCHED UP TO
297 FROM 294 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 484 FROM 481
ACCORDING TO BANXQUOTE 9402230176 940223 NYCE YANKEE 24 CASH NETWORKS'
MERGER APPROVED BY DIRECTORS

NEW YORK THE OWNERS OF THE NYCE AND YANKEE 24 FUNDSTRANSFER NETWORKS
SAID THEIR PREVIOUSLY ANNOUNCED PLAN TO MERGE WAS APPROVED BY DIRECTORS OF
BOTH CASH NETWORKS

NEW YORK SWITCH CORP THE NEW YORK OWNER OF THE NYCE NETWORK AND NENI
CORP THE WALLINGFORD CONN OWNER OF THE YANKEE 24 NETWORK WILL COMBINE
TO CREATE INFINET PAYMENT SERVICES INC

RICHARD YANK CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OF YANKEE 24 WILL
BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW COMPANY THE NEW
COMPANY WILL BE ONE OF THE LARGEST NETWORKS IN THE US SERVING MORE THAN
1300 BANKS AND CREDIT UNIONS WITH APPROXIMATELY 13200 AUTOMATICTELLER
MACHINES 9402230175 940223 CALGENE DISPUTE WITH ZENECA

DAVIS CALIF CALGENE INC THE BIOTECHNOLOGY COMPANY THAT PLANS TO SELL
THE GENETICALLY ENGINEERED FLAVR SAVR TOMATO SAID THAT WITH ITS PARTNER
CAMPBELL SOUP CO IT SETTLED A PATENT DISPUTE WITH ZENECA AVP OVER THE
POLYGALACTURONASE GENE IN TOMATOES

UNDER THE AGREEMENT CAMPBELL WILL SELL TO CALGENE AND ZENECA THE RIGHTS TO
COMMERCIALIZE USE OF THE GENE CALGENE WILL HAVE EXCLUSIVE RIGHTS TO PRODUCE
AND SELL FRESH TOMATO PRODUCTS ZENECA AND CAMPBELL WILL HAVE COEXCLUSIVE
RIGHTS TO PRODUCE AND SELL PROCESSED TOMATO PRODUCTS WHILE ZENECA WILL HAVE
RIGHTS TO SUBLICENSE THIS TECHNOLOGY TO OTHER PROCESSORS 9402230174
940223 SOME BROKERS PROMISE THAT YOU WILL MAKE MONEY NOT THIS ONE 
 BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK IT HAS TO BE THE SMALLEST SIMPLEST ADVERTISEMENT IN WALL STREET
HISTORY

HONEST STOCKBROKER IT SAYS FOLLOWED BY A PHONE NUMBER

THAT'S ALL THERE IS TO THE TINY ADVERTISEMENT THAT HAS RUN FOR THE PAST FOUR
MONTHS IN NEW YORK PRESS A WEEKLY NEWSPAPER BUT APPARENTLY THAT'S ALL
THAT'S NEEDED

I WANTED SOMETHING THAT ATTRACTED ATTENTION SAYS MICHAEL BERTAN OF ADVEST
GROUP INC MR BERTAN SAYS THAT FOR THE FEW HUNDRED DOLLARS HE HAS SPENT
THE ADS HAVE GENERATED SEVERAL RESPONSES A WEEK AND AT LEAST FOUR CUSTOMERS
JUST LAST WEEK I GOT A PHONE CALL FROM A LADY LOOKING FOR 100000 OF
GOVERNMENT BONDS SAYS MR BERTAN 30 YEARS OLD THIS WORKED FOR ME IS IT
GOING TO WORK FOR SOMEONE IN IDAHO I DON'T KNOW

MR BERTAN DID GET SOME CRANK CALLS SOMEONE CLAIMED HE WAS A MOVIE PRODUCER
WITH 35 MILLION TO INVEST BUT NEVER SHOWED UP FOR A SCHEDULED MEETING A
PSYCHIC OFFERED HIS STOCKPICKING SERVICES OTHER NEWSPAPERS CALLED WANTING
MR BERTAN TO ADVERTISE WITH THEM TOO AND RIVAL STOCKBROKERS CALL ALL THE
TIME SAYS MR BERTAN THEY ACCUSE HIM OF IMPLYING THAT EVERYONE ELSE IS
DISHONEST

BUT YOU CAN'T BEAT THE AD'S DIRECTNESS IT HAS A CERTAIN APPEAL AGREES
BENJAMIN EDWARDS CHAIRMAN OF THE HIGHLY REGARDED AG EDWARDS INC IN ST
LOUIS STILL MR EDWARDS WOULDN'T RECOMMEND THAT ANY OF HIS OWN BROKERS
PLACE SIMILAR ADS IF SOMEONE HAD TO TELL ME HE'S HONEST I'D WORRY FOR
THE RECORD MR BERTAN'S FILE WITH SECURITIES REGULATORS SHOWS NO
DISCIPLINARY CASES IN HIS SHORT HISTORY AS A BROKER

YOU WOULD THINK THAT ADVEST OFFICIALS WOULD PUBLICLY APPLAUD MR BERTAN'S
INGENUITY BUT HIS SUPERVISOR WHO APPROVED THE AD DAVID SAALFRANK SAID
LAST WEEK THAT HE WISHED THIS STORY WOULDN'T BE PUBLISHED BECAUSE WE KIND
OF LIKE TO KEEP THE AD A SECRET WEAPON MORE IMPORTANT SAID MR SAALFRANK
HE DOESN'T KNOW WHETHER THE NEW YORK STOCK EXCHANGE WHICH POLICES BROKERAGE
FIRMS WOULD APPROVE OF THE AD

HE MAY BE RIGHT YESTERDAY A BIG BOARD SPOKESMAN SAID THAT WHILE HE CAN'T
ADDRESS MR BERTAN'S AD SPECIFICALLY IN GENERAL BLIND ADS ARE NOT
PERMISSIBLE FOR ATTRACTING INVESTORS IF THE AD GETS PULLED IT MAY SOON BE
IMPOSSIBLE TO FIND AN HONEST STOCKBROKER AT LEAST IN THE NEWSPAPER ADS
9402230173 940223 INTERNATIONAL FIAT REACHES ACCORD ON JOB CUTS

ROME FIAT SPA REACHED A KEY ACCORD WITH LABORUNION AND GOVERNMENT
REPRESENTATIVES FOR TEMPORARY LAYOFFS EARLY RETIREMENT AND JOBSHARING
PROGRAMS TO CUT A TOTAL OF 16500 JOBS THE ITALIAN AUTO MAKER SAID

AFTER MONTHS OF HEATED NEGOTIATING AND NUMEROUS WORKERS' PROTESTS THE
ACCORD WAS REACHED LATE MONDAY NIGHT IN ROME

UNDER THE AGREEMENT 8800 WORKERS FROM THREE FACTORIES WILL BE PERMANENTLY
LET GO THROUGH EARLY RETIREMENT OR LONG GOVERNMENTSUBSIDIZED TEMPORARY
LAYOFFS LASTING UNTIL RETIREMENT 9402230172 940223 DIVIDEND NEWS 
ENSERCH SUBSIDIARY SAYS DEBT SPURRED HALT OF CASH DISTRIBUTION

DALLAS ENSERCH EXPLORATION PARTNERS LTD SAID IT WILL SUSPEND ITS
QUARTERLY CASH DISTRIBUTION TO UNITHOLDERS

IN A NEWS RELEASE GARY J JUNCO PRESIDENT AND CHIEF OPERATING OFFICER OF
THE OIL AND NATURALGAS PARTNERSHIP'S MANAGING GENERAL PARTNER ENSERCH
EXPLORATION INC SAID CONTINUING THE CASH DISTRIBUTION WOULD BE IMPRUDENT

CASH REQUIREMENTS FOR FUNDING THESE DISTRIBUTIONS AND FOR CAPITAL
EXPENDITURES MERITED FOR GROWTH HAVE EXCEEDED CASH GENERATION FOR SOME
TIME HE SAID ENSERCH EXPLORATION PARTNERS HAS BEEN BORROWING FROM
ENSERCH CORP TO FUND THE CASH DISTRIBUTION FOR MANY YEARS BECAUSE ENSERCH
OWNS 992 OF THE OUTSTANDING ENSERCH EXPLORATION PARTNERS UNITS THE
DISTRIBUTION HAS VIRTUALLY BEEN PAID ENTIRELY TO ENSERCH WHILE THE
PARTNERSHIP HAS INCURRED THE DEBT ASSOCIATED WITH PAYING THE DISTRIBUTION
IT WOULD NOT BE PRUDENT TO FURTHER INCREASE ENSERCH EXPLORATION PARTNERS'
TOTAL DEBT FOR THE PURPOSE OF CONTINUING THESE DISTRIBUTIONS

ENSERCH CORP THE MAJORITY OWNER OF ENSERCH EXPLORATION PARTNERS IS AN
ENERGY ENGINEERING AND CONSTRUCTION CONCERN

MR JUNCO SAID REINSTATEMENT OF THE CASH DISTRIBUTION WOULD DEPEND ON
FACTORS THAT INCLUDE FUTURE CASH FLOW AND CAPITAL SPENDING REQUIREMENTS
9402230171 940223 POLICY MANAGEMENT SYSTEMS POSTS LOSS OF 60 MILLION
FOR THE FIRST HALF OF '93  BY HELENE COOPER STAFF REPORTER OF THE
WALL STREET JOURNAL

POLICY MANAGEMENT SYSTEMS CORP IN ITS FIRST EARNINGS REPORT IN ALMOST A
YEAR REPORTED A LOSS OF 60 MILLION OR 262 A SHARE FOR THE FIRST HALF
OF 1993

THE FIGURES APPEAR TO MARK THE CLOSE OF ONE ACT IN A 10MONTH DRAMA AT THE
BLYTHEWOOD SC INSURANCE SOFTWARE CONCERN LAST APRIL POLICY MANAGEMENT
DISCLOSED THAT FIRSTQUARTER RESULTS WOULD FALL WELL BELOW THE COMPANY'S
EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T CLOSED AS EXPECTED THAT NEWS
PROMPTED POLICY MANAGEMENT'S SHARE PRICE TO DROP 43 OR 3625 IN A SINGLE
DAY SINCE THEN THE ACCURACY OF THE COMPANY'S FINANCIAL REPORTING HAS
BECOME THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE SHARES CLOSED AT
35375 UP 25 CENTS

IN A FEDERAL COURT FILING LAST MONTH POLICY MANAGEMENT ACKNOWLEDGED THAT IT
RECOGNIZED ON ITS FINANCIAL STATEMENTS SOME REVENUE BEFORE CONTRACTS WERE
FORMALLY SIGNED THE COMPANY DENIED HOWEVER THAT IT MISREPRESENTED ITS
FINANCIAL HEALTH IN AN EFFORT TO ACHIEVE A CONSISTENT 20 GROWTH AS A
SHAREHOLDER LAWSUIT CHARGED POLICY MANAGEMENT HAS ALSO DENIED A SERIES OF
ALLEGATIONS CHARGING THE COMPANY WITH IMPROPER ACCOUNTING PRACTICES

POLICY MANAGEMENT IN A STATEMENT BLAMED THE SIXMONTH LOSS ON THE CURRENT
UNCERTAINTY SURROUNDING THE ISSUE OF NATIONAL HEALTHCARE REFORM WHICH IT
SAID HAS CAUSED CUSTOMERS TO POSTPONE PURCHASES OF HEALTH INSURANCE
INFORMATION SYSTEMS AS A RESULT POLICY MANAGMENT SAID IT RECORDED A PRETAX
CHARGE OF 801 MILLION IN LAST YEAR'S FIRST HALF TO REDUCE THE VALUE OF ITS
HEALTH INSURANCE ASSETS AND TO RESERVE FOR THE COSTS OF RESTRUCTURING THAT
PORTION OF ITS BUSINESS

STILL THE COMPANY SAID IT GENERATED A 38 MILLION OPERATING PROFIT IN THE
FIRST SIX MONTHS OF 1993 AND DESCRIBED ITS BALANCE SHEET MORE THAN 160
MILLION IN CASH AND MARKETABLE SECURITIES AGAINST SOME 9 MILLION IN DEBT 
AS STRONG

THE SIXMONTH NUMBERS AT LEAST PUT THE BOTTOM END ON HOW BAD THINGS WERE
SAID CHARLES PHILLIPS AN ANALYST WITH KIDDER PEABODY & CO IN NEW YORK
THE WRITEOFFS ARE DONE BUT HE ADDED WE STILL DON'T KNOW WHAT THE
REST OF THE 1993 FINANCIAL PICTURE WILL LOOK LIKE

POLICY MANAGEMENT HAS TOLD ANALYSTS AND INVESTORS IT WILL RELEASE 1993
THIRD AND FOURTHQUARTER NUMBERS BY MARCH 31

IN AUGUST POLICY MANAGMENT DISMISSED INDEPENDENT ACCOUNTANT ARTHUR ANDERSEN
& CO HIRING COOPERS & LYBRAND THE COMPANY HAS SAID PREVIOUSLY THAT 1990
AND 1991 AUDIT REPORTS BY ERNST & YOUNG AS WELL AS THE 1992 AUDIT REPORT BY
ARTHUR ANDERSEN HAD BEEN WITHDRAWN ACCORDINGLY POLICY MANAGEMENT SAID IT
COULDN'T PROVIDE ACCURATE YEAREARLIER COMPARISONS FOR THE FIRST SIX MONTHS
OF 1993

THE COMPANY SAID AUDITS FOR THOSE YEARS AS WELL AS FOR THE REMAINDER OF
1993 WILL BE COMPLETED AS SOON AS POSSIBLE

POLICY MANAGEMENT SYSTEMS CORP REPORTED APPROXIMATELY 15 MILLION IN
OPERATING PROFIT FOR THE FIRST SIX MONTHS OF 1993 BEFORE THE EFFECT OF
RESTRUCTURING AND OTHER SPECIAL CHARGES THE FIGURE WAS MISSTATED AS 38
MILLION IN AN ARTICLE YESTERDAY 9402230170 940223 LAW BLACKMUN WILL
NOT VOTE TO AFFIRM DEATH PENALTIES

WASHINGTON JUSTICE HARRY BLACKMUN SAID THAT HE NO LONGER WOULD VOTE TO
AFFIRM ANY DEATH SENTENCES MAKING HIM THE ONLY CURRENT MEMBER OF THE
SUPREME COURT TO TAKE THAT POSITION

IN AN EMOTIONAL DISSENT FROM THE COURT'S REFUSAL TO HEAR AN APPEAL BY A
CONDEMNED TEXAS KILLER JUSTICE BLACKMUN SAID THE DEATH PENALTY AS CURRENTLY
ADMINISTERED VIOLATES THE CONSTITUTIONAL BAN ON CRUEL AND UNUSUAL
PUNISHMENTS HE ASSERTED THAT THE SUPREME COURT HAS FAILED IN A TWODECADE
EFFORT TO BALANCE THE GOALS OF BEING CONSISTENT IN METING OUT THE ULTIMATE
PENALTY AND PAYING ATTENTION TO THE PARTICULAR CICUMSTANCES OF INDIVIDUAL
CASES

JUSTICE ANTONIN SCALIA WROTE A TART REJOINDER ACCUSING HIS COLLEAGUE OF
BASING HIS POSITION ON PERSONAL VIEWS RATHER THAN THE TEXT AND TRADITION
OF THE CONSTITUTION

JUSTICE BLACKMUN'S PRONOUNCEMENT WASN'T A BIG SURPRISE BECAUSE HE HAS
INDICATED INCREASING UNEASINESS ABOUT EXECUTION IN RECENT YEARS
9402230169 940223 MCN UNIT'S MICHIGAN EXPANSION

DETROIT MCN CORP SAID ITS MICHIGAN CONSOLIDATED GAS CO UNIT FILED AN
APPLICATION WITH THE MICHIGAN PUBLIC SERVICE COMMISSION SEEKING APPROVAL FOR
A 170 MILLION EXPANSION PROJECT IN NORTHERN MICHIGAN

UNDER THE PLAN MCN WOULD ADD 177 MILES OF PIPELINE AND NATURAL GAS
TREATMENT FACILITIES TO THE COMPANY'S EXISTING GAS TRANSMISSION SYSTEM IN
THE STATE IF APPROVED THE PROJECT COULD BEGIN THIS YEAR 9402230168
940223 MARKETING & MEDIA GENERAL MILLS TO INTRODUCE CHEERIOS
SALTYSNACK MIX

GENERAL MILLS INC WILL SOON INTRODUCE A SALTYSNACK MIX FEATURING ITS
MOSTPOPULAR BREAKFAST CEREAL AS WELL AS MINICHEESY CRACKERS PRETZELS AND
PEANUTS CHEERIOS SNACK MIX WILL COME IN TWO FLAVORS ORIGINAL AND CHEDDAR
CHEESE

THE PRODUCT IS BEING POSITIONED TO COMPETE DIRECTLY WITH CHEX MIX FROM
CEREAL RIVAL RALSTON PURINA CO THE 85 OZ BAGS OF CHEERIOS SNACK MIX WILL
HAVE A SUGGESTED RETAIL PRICE OF 199

MINNEAPOLISBASED GENERAL MILLS ALSO SAID AT AN ANALYSTS' CONFERENCE HERE
THAT IT WILL SOON ROLL OUT ANOTHER SNACK ITEM POP SECRET BRAND POP CHIPS
MADE FROM POPCORN POP SECRET IS THE COMPANY'S MICROWAVABLE POPCORN

POP CHIPS WILL BE MARKETED WITH AN EYE TO THE WAISTLINE COPY SAYS THE CHIPS
CONTAIN LESS FAT PER SERVING THAN POTATO TORTILLA CORN AND MULTIGRAIN
VERSIONS POP CHIPS WILL COME IN ORIGINAL BUTTER AND SOUR CREAM AND ONION
FLAVORS

A RECENT PRESWEETENED CHIP CALLED FINGOS MARKETED AS A CEREAL THAT DOESN'T
REQUIRE MILK HAS PERFORMED POORLY COMPANY EXECUTIVES ADMIT 9402230167
940223 TREASURY PLANS OFFERING OF ABOUT 252 BILLION

WASHINGTON THE TREASURY PLANS TO PAY DOWN 352 MILLION ON THE PUBLIC DEBT
WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS MATURING
BILLS OUTSTANDING TOTAL 2552 BILLION

THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS
MATURING ON JUNE 2 1994 AND SEPT 1 1994 RESPECTIVELY THE CUSIP NUMBER
FOR THE THREEMONTH BILLS IS 912794K86 THE CUSIP NUMBER FOR THE SIXMONTH
BILLS IS 912794M92

NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000
DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT
FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE
RECEIVED BY 1 PM EST 9402230166 940223 FORD CONFIRMS INQUIRY INTO
KICKBACK ALLEGATIONS

DETROIT FORD MOTOR CO CONFIRMED THAT IT WAS INVESTIGATING ALLEGATIONS
THAT EMPLOYEES AT ITS KANSAS CITY MO ASSEMBLY PLANT WERE REQUIRED TO KICK
BACK PART OF THEIR OVERTIME PAY TO THE SUPERVISORS WHO SCHEDULED THE ADDED
HOURS

ASSEMBLY PLANT WORKERS CAN EARN 10000 A YEAR OR MORE IN OVERTIME PAY
WORKERS AT KANSAS CITY HAVE ALLEGED THAT THEY WERE REQUIRED TO GIVE AS MUCH
AS HALF THEIR OVERTIME PAY TO SUPERVISORS THE KANSAS CITY STAR REPORTED

IN ADDITION FORD SAID IT WAS INVESTIGATING ALLEGATIONS THAT CERTAIN
EMPLOYEES HAD PAID SUPERVISORS TO GET HIRED AT THE KANSAS CITY PLANT FORD
SAID IT HADN'T RECEIVED SIMILAR ALLEGATIONS FROM ANY OF ITS OTHER PLANTS

THE KANSAS CITY PLANT ONE OF FORD'S BIGGEST EMPLOYS 3872 HOURLY WORKERS
AND PRODUCES MORE THAN 400000 TEMPO AND TOPAZ ECONOMY CARS AND F SERIES
PICKUP TRUCKS A YEAR THE PLANT WILL STOP PRODUCING THE TEMPO AND TOPAZ ON
JUNE 1 AND BEGIN PRODUCING TWO NEW COMPACT CARS THE CONTOUR AND THE
MYSTIQUE 9402230165 940223 POLITICS & POLICY UNIONS AGREE TO RESUME 
PAYMENTS TO DEMOCRATS

BAL HARBOUR FLA LABOR UNIONS WILL RESUME CONTRIBUTIONS TO THE
DEMOCRATIC NATIONAL COMMITTEE AFTER A FIVEMONTH HIATUS CAUSED BY THE
DISPUTE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT

ORGANIZED LABOR HAS GIVEN 2 MILLION TO 3 MILLION ANNUALLY TO THE COMMITTEE
IN THE PAST SEVERAL YEARS BUT AFTER THE CLINTON ADMINISTRATION PRESSED FOR
 AND WON PASSAGE OF NAFTA UNIONS HALTED THEIR PAYOUTS

NOW FOLLOWING A STRING OF MEETINGS BETWEEN DNC CHAIRMAN DAVID WILHELM AND
LABOR LEADERS UNIONS WILL AGAIN OPEN THE SPIGOT IN TIME FOR THE 1994
ELECTIONS THOSE ELECTIONS ARE EXPECTED TO BE DIFFICULT FOR DEMOCRATS WHO
HAVE HAD A HIGHERTHANUSUAL NUMBER OF RESIGNATIONS IN THE HOUSE AND SENATE

MR WILHELM AND OFFICIALS OF THE AFLCIO SAID THAT IN EXCHANGE FOR RESUMING
THE FLOW OF MONEY UNIONS WILL HAVE A STRONGER ADVISORY PANEL TO THE DNC
AFLCIO OFFICIALS ALSO SAID THE DNC AGREED THAT NO MEMBER WHO VOTED AGAINST
NAFTA AND IN SUPPORT OF THE UNIONS WOULD BE BLACKBALLED 9402230164
940223 TWO MEN DENY ALLEGATIONS IN DIAMONDPRICING CASE  A WALL
STREET JOURNAL NEWS ROUNDUP

SPOKESMEN FOR TWO MEN INDICTED LAST WEEK ALONG WITH GENERAL ELECTRIC CO AND
DE BEERS CENTENARY AG ON CHARGES OF PRICEFIXING SAID THAT BOTH MEN DENIED
ANY WRONGDOING

PREVIOUSLY BOTH GE AND DE BEERS DENIED ANY WRONGDOING

A SPOKESMAN FOR PHILIPPE LIOTIER THE DEPUTY GENERAL MANAGER OF CIE
FINANCIERE DE SUEZ IN PARIS AND UNTIL RECENTLY CHIEF EXECUTIVE OFFICER OF
DIAMANT BOART SA SAID MR LIOTIER COMMITTED NO CRIME AND THUS HAS NO
COMMENT TO MAKE

DIAMANT BOART BASED IN BRUSSELS MAKES SYNTHETIC DIAMONDS THROUGH A 5050
JOINT VENTURE WITH DE BEERS CENTENARY WHICH WAS CITED IN THE CRIMINAL
INDICTMENT FOR ALLEGEDLY CONSPIRING WITH GE BASED IN FAIRFIELD CONN TO
FIX PRICES OF INDUSTRIAL DIAMONDS

THE OTHER MAN INDICTED IS PETER FRENZ MANAGING DIRECTOR OF GE'S
SUPERABRASIVES UNIT BASED NEAR FRANKFURT THE CHARGES ARE NONSENSE AND THE
INDICTMENT IS A BAG OF HOT AIR SAID MR FRENZ'S LAWYER IN WASHINGTON DC
GE SUPERABRASIVES BASED IN WORTHINGTON OHIO MAKES INDUSTRIAL DIAMONDS
9402230163 940223 BUSINESS BRIEFS

NORWOOD PROMOTIONAL PRODUCTS INC AGREED TO ACQUIRE KEY INDUSTRIES INC OF
PEORIA ILL TERMS WEREN'T DISCLOSED

FUTURE NOW INC RECEIVED A CONTRACT TO PROVIDE COMPUTER SALES AND SERVICES
TO A UNIT OF FLUOR CORP THE THREEYEAR CONTRACT IS VALUED AT 30 MILLION TO
36 MILLION

BEARINGS INC AGREED TO PURCHASE FIVE INDUSTRIAL PRODUCTDISTRIBUTION
BRANCHES OWNED AND OPERATED BY IBT INC OF KANSAS CITY KAN TERMS WEREN'T
DISCLOSED THE ACQUISITION IS EXPECTED BY THE SECOND QUARTER

DNA PLANT TECHNOLOGY CORP PLANS TO LAY OFF ABOUT 6 OF ITS WORK FORCE OR
ABOUT 30 EMPLOYEES AND MOVE CORPORATE HEADQUARTERS TO ITS OAKLAND CALIF
RESEARCH FACILITY

ASSOCIATED ESTATES REALTY CORP ACQUIRED WILLIAMSBURG TOWNHOMES OF SAGAMORE
HILLS OHIO FROM CLOSELY HELD M MYERS PROPERTIES OF CHICAGO FOR 1375
MILLION

BARNETT BANKS INC AGREED TO ACQUIRE LOAN AMERICA FINANCIAL CORP FOR
APPROXIMATELY 62 MILLION LOAN AMERICA BASED IN MIAMI LAKES FLA IS A
RESIDENTIAL MORTGAGE BANKING CONCERN

RANDOM ACCESS INC AGREED TO ACQUIRE JLV ENTERPRISES INC A
TELECOMMUNICATIONS AND VIDEOCONFERENCING BUSINESS IN LITTLETON COLO FOR
ABOUT 25 MILLION RANDOM ACCESS WILL ISSUE COMMON STOCK TO JLV
SHAREHOLDERS 9402230162 940223 MARKETING & MEDIA POST RAISES CEREAL
PRICES MIRRORING 2 COMPETITORS  A WALL STREET JOURNAL NEWS
ROUNDUP

THE POST CEREALS UNIT OF KRAFT GENERAL FOODS IS RAISING PRICES ON 16 OF ITS
24 READYTOEAT CEREALS AN AVERAGE OF 31 FOLLOWING SIMILAR MOVES BY TWO
COMPETITORS

KELLOGG CO THE NATION'S LARGEST CEREAL MAKER TOUCHED OFF THE LATEST
INCREASES EARLIER THIS MONTH LAST FRIDAY QUAKER OATS CO JOINED IN WITH A
22 AVERAGE INCREASE THAT COVERED MOST OF ITS BRANDS

AMONG THE MAJOR CEREAL PRODUCERS ONLY GENERAL MILLS INC HAS SAID IT
WOULDN'T RAISE PRICES CONTENDING THAT SUBSEQUENT PROMOTION COSTS TO RETAIN
CONSUMERS OFTEN CANCEL OUT ANY GAIN FROM A HIGHER PRICE

RALSTON PURINA CO THE NATION'S BIGGEST PRODUCER OF PRIVATELABEL CEREALS
HAD NO IMMEDIATE COMMENT ON WHETHER IT WOULD RAISE ITS PRICES

POST WHICH IS PART OF PHILIP MORRIS COS' FOOD GROUP MOST RECENTLY
INCREASED LIST PRICES ON ITS BREAKFAST CEREALS IN AUGUST POST HAS ABOUT A
15 SHARE OF THE 8 BILLION US COLDCEREAL MARKET KELLOGG A 37 SHARE AND
QUAKER A 78 SHARE 9402230161 940223 INTERNATIONAL BTR'S SALE OF
GRAHAM GROUP

LONDON INDUSTRIAL GROUP BTR PLC SAID THE PLANNED FLOTATION OF ITS GRAHAM
GROUP BUILDINGMATERIAL UNIT WILL GENERATE GROSS PROCEEDS OF 2342 MILLION
3472 MILLION

THE COMPANY SAID IT WILL RAISE 2098 MILLION AND THAT THE BALANCE OF THE
PROCEEDS REPRESENTS DEBT TO BE REPAID OR ASSUMED BY GRAHAM

BTR ANNOUNCED PLANS TO FLOAT THE GRAHAM UNIT IN 1993 BUT DIDN'T RELEASE FULL
FINANCIAL DETAILS 9402230160 940223 TECHNOLOGY IBM UNIT CUTS
PORTABLE'S PRICES

ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP'S IBM PERSONAL
COMPUTER CO SAID IT CUT THE PRICES OF ITS THINKPAD 500 SUBNOTEBOOK COMPUTER
BY AS MUCH AS 20

UNDER THE NEW PRICING THE 34 POUND PORTABLE SELLS FOR 1699 WITH AN
85MEGABYTE HARD DRIVE THE SAME COMPUTER WITH A 170MEGABYTE HARD DRIVE
SELLS FOR 1999

IBM TEMPORARILY WITHDREW THE MODEL FROM THE MARKET LAST YEAR WHILE IT FIXED
A BATTERY PROBLEM IBM SAID THE PRICING MOVE CAME IN RESPONSE TO
COMPETITION 9402230159 940223 SAGE TECHNOLOGIES ACQUISITION

STAMFORD CONN SAGE TECHNOLOGIES INC A COMPUTER PRODUCTS AND SERVICES
COMPANY COMPLETED THE ACQUISITION OF LYNNFIELD COMPUTERS INC A WAKEFIELD
MASS PROVIDER OF COMPUTERNETWORK HARDWARE AND SOFTWARE TERMS WEREN'T
DISCLOSED

LYNNFIELD HAS ANNUAL REVENUE OF 14 MILLION 9402230158 940223
INTERNATIONAL NORTHWEST TO TRAIN CREWS FOR FIVE CHINESE AIRLINES

HONG KONG A NORTHWEST AIRLINES UNIT SAID IT SIGNED CONTRACTS WITH FIVE
CHINESE AIRLINES TO TRAIN AT LEAST 250 OF THEIR PILOTS AND MORE THAN 30
FLIGHT ATTENDANTS IN THE US THIS YEAR

JOHN WATKINS NORTHWEST'S MANAGING DIRECTOR FOR HONG KONG CHINA AND TAIWAN
SAID THE PARTICIPATING CARRIERS ARE CHINA SOUTHWEST CHINA EASTERN CHINA
NORTHERN SHANGHAI AIRLINES AND XIAMEN AIRLINES ALL FLY KEY DOMESTIC
ROUTES AND SHANGHAIBASED CHINESE EASTERN ALSO FLIES TO THE US AND TO
OTHER OVERSEAS POINTS

THE TRAINING PROVIDED BY NORTHWEST AEROSPACE TRAINING CORP IN ST PAUL
MINN INCLUDES REFRESHER COURSES FOR QUALIFIED PILOTS INSTRUCTION ON NEW
AIRCRAFT TYPES AND TRAINING FOR AIR FORCE PILOTS JUST STARTING OUT ON
CIVILIAN PLANES NORTHWEST DECLINED TO SPECIFY THE VALUE OF THE CONTRACTS
WHICH ARE RENEWABLE BUT MR WATKINS SAID THE FIRST YEAR OF TRAINING IS A
MULTIMILLIONDOLLAR DEAL

SUCH CONTRACTS COULD HELP CHINA IMPROVE ITS POOR AVIATIONSAFETY RECORD THE
INDUSTRY IS FACING HARSH CRITICISM FROM INTERNATIONAL AVIATION WATCHDOGS FOR
FAILING TO SPEEDILY TACKLE A PILOT SHORTAGE AND IMPROVE ITS POOR AVIATION
INFRASTRUCTURE 9402230157 940223 TECHNOLOGY JAPANESE OFFICIAL SUGGESTS
 REPLACING HDTV SYSTEM

TOKYO A JAPANESE GOVERNMENT OFFICIAL REPORTEDLY HAS SUGGESTED THAT JAPAN
WILL ABANDON ITS ANALOG HIGHDEFINITION TELEVISION SYSTEM TOUCHING OFF A
FIRESTORM AMONG THE ELECTRONICS MAKERS WHO HAVE INVESTED BILLIONS OF YEN IN
DEVELOPING HDTV TELEVISIONS AND BROADCAST EQUIPMENT

AKIMASA EGAWA DIRECTORGENERAL OF THE BROADCAST BUREAU AT JAPAN'S MINISTRY
OF POSTS AND TELECOMMUNICATIONS SAID THAT JAPAN WILL BEGIN DEVELOPING A
DIGITAL HDTV SYSTEM SIMILAR TO THOSE UNDER DEVELOPMENT IN THE US AND
EUROPE TO REPLACE THE EXISTING ANALOG SYSTEM WHICH JAPAN BROADCASTING CORP
NHK BEGAN DEVELOPING MORE THAN 30 YEARS AGO MR EGAWA ALSO SAID THE
MINISTRY WILL EVENTUALLY BRING AN END TO THE EXPERIMENTAL ANALOG HDTV
BROADCASTS THAT IT BEGAN IN LATE 1991

MR EGAWA'S COMMENTS WERE FIRST REPORTED BY THE NIHON KEIZAI SHIMBUN AND
LATER CONFIRMED IN A GENERAL WAY BY A DIFFERENT POSTALMINISTRY OFFICIAL
MR EGAWA HIMSELF COULD NOT BE REACHED FOR COMMENT

NHK IMMEDIATELY ISSUED A PRESS RELEASE DENOUNCING MR EGAWA'S REPORTED
REMARKS AS VERY REGRETTABLE 9402230156 940223 INTERNATIONAL 
DAIMLERBENZ'S MERCEDES UNIT TO BUILD A CAR WITH MAKER OF SWATCH WATCHES 
 BY AUDREY CHOI AND MARGARET STUDER STAFF REPORTERS OF THE WALL
STREET JOURNAL

IN AN UNUSUAL UNION OF THE TRADITIONAL AND THE HIP MERCEDESBENZ WILL JOIN
FORCES WITH THE MAKER OF THE SWATCH TO MAKE A SMALL LOWCOST CAR KNOWN AS
THE SWATCHMOBILE

THE AGREEMENT ANNOUNCED YESTERDAY BY MERCEDES'S PARENT DAIMLERBENZ AG
STUTTGART GERMANY WAS A VICTORY FOR NICOLAS HAYEK CHAIRMAN OF SWATCH
MANUFACTURER SMH SWISS CORP FOR MICROELECTRONICS AND WATCHMAKING
INDUSTRIES BIEL SWITZERLAND MR HAYEK CREATOR OF THE POPULAR PLASTIC
WATCH THAT REINVIGORATED SWISS WATCHMAKING HAD LONG BEEN SEEKING A PARTNER
TO BUILD THE SWATCHMOBILE

FOR MERCEDES IT WAS A DARING AND SOME ANALYSTS SAID DANGEROUS BID TO
BROADEN ITS PRESENCE IN THE MASS MARKET THE COMPANY ALREADY IS PLANNING TO
INTRODUCE A SERIES OF SMALL ACLASS LUXURY CARS IN 1997 AND THE
COLLABORATION WITH MR HAYEK COULD ENABLE IT TO REACH YOUNGER AND
MOREFRUGAL BUYERS

THE STRATEGIC IMPACT OF THE PROJECT ON THE LUXURYCAR MAKER'S BUSINESS
WASN'T IMMEDIATELY CLEAR BECAUSE SO MANY DETAILS OF THE ARRANGEMENT WERE
LACKING THE COMPANY DIDN'T DISCLOSE FOR EXAMPLE HOW MANY SWATCHMOBILES IT
WOULD AIM TO PRODUCE WHAT PRICE IT WOULD CHARGE WHAT QUALITY STANDARDS IT
WOULD SET HOW MUCH IT WOULD INVEST IN THE PROJECT OR HOW CLOSELY IT WOULD
TIE THE NEW MODEL'S IMAGE TO ITS PRESTIGIOUS MERCEDES STAR

MR HAYEK WAS LESS RESERVED HE SAID THE PROJECT WOULD AIM TO SELL 100000
CARS IN THE FIRST YEAR POSSIBLY 1996 OR 1997 AND UP TO ONE MILLION
ANNUALLY IN THE FIFTH YEAR PROTOTYPES OF THE SWATCHMOBILE HAVE BEEN DRIVEN
ON SWISS ROADS FOR MORE THAN A YEAR HE ADDED

WHATEVER THE DETAILS SOME ANALYSTS SAID MERCEDES WAS TAKING AN EXTREMELY
RISKY LEAP INTO THE UNKNOWN IT'S ALREADY A MASSIVE GAMBLE FOR SOMEONE LIKE
MERCEDES TO BUILD THE ACLASS TO BUILD A SMALL SWATCH CAR IN ADDITION IS
COMPLETELY ILLOGICAL SAID PETER SCHMIDT JOINT MANAGING DIRECTOR OF
AUTOMOTIVE INDUSTRY DATA LTD A BRITISH CONSULTING CONCERN THERE ARE HUGE
POTENTIAL RISKS IN TERMS OF DAMAGING MERCEDES'S REPUTATION

OTHER ANALYSTS WERE MORE UPBEAT KARSTEN RAHLF AUTO INDUSTRY ANALYST FOR
MM WARBURG BANK INVESTMENT RESEARCH IN HAMBURG DESCRIBED THE ALLIANCE AS
A SMART STRATEGIC MOVE THAT WOULD ENABLE MERCEDES TO MAKE BETTER USE OF ITS
OVERCAPACITIES IN PRODUCTION AND ENGINEERING MOREOVER BY MARKETING THE
CARS UNDER THE SWATCH LABEL MERCEDES WOULD BE ABLE TO ENTER THE SUBCOMPACT
MARKET WITHOUT STRETCHING THE BRAND IMAGE OF MERCEDES TOO FAR DOWNWARD HE
SAID

MERCEDES IS GETTING A PROVEN MARKETING GENIUS TO LEAD ITS FORAY INTO THE
SUBCOMPACT WORLD AS MR HAYEK HIMSELF POINTS OUT A CAR IS AN EMOTIONAL
CONSUMER PRODUCT LIKE A WATCH HE SAID I WAS BORN TO SELL EMOTIONAL
CONSUMER PRODUCTS

THE APPROVAL OF SMH'S ADMINISTRATIVE BOARD AND MERCEDES'S SUPERVISORY BOARD
STILL IS REQUIRED BEFORE THE PROJECT IS OFFICIAL MERCEDES'S SUPERVISORY
BOARD HAS A REGULARLY SCHEDULED MEETING THIS WEEK

SMH INVESTORS RESPONDED FAVORABLY TO THE ANNOUNCEMENT SENDING THE STOCK
SHARPLY HIGHER ON THE ZURICH STOCK EXCHANGE TO CLOSE AT 2075 SWISS FRANCS
14384 UP 650 SWISS FRANCS THE GERMAN STOCK MARKET HOWEVER LEFT
DAIMLER SHARES LARGELY UNMOVED BY NEWS OF THE COOPERATION INTENT DAIMLER
STOCK ENDED TRADING IN FRANKFURT AT 81820 MARKS 47791 DOWN 180 MARKS

WHEN HAYEK FIRST CAME OUT WITH THE IDEA THERE WAS CONSIDERABLE EXCITEMENT
ABOUT IT BUT NOW PEOPLE ARE SKEPTICAL WE HAVE ALREADY SEEN THE PROJECT GET
A START WITH VW JUST TO SEE IT RUN AGROUND SAID BARBARA SCHULZ
INTERNATIONAL INVESTMENT ADVISER AT MERCK FINCK & CO IN DUESSELDORF
REFERRING TO ILLFATED EARLIER ATTEMPTS AT COOPERATION BETWEEN MR HAYEK AND
EUROPE'S BIGGEST CAR PRODUCER VOLKSWAGEN AG TO LAUNCH THE SWATCHMOBILE

EXECUTIVES AT ADAM OPEL AG THE GERMAN SUBSIDIARY OF GENERAL MOTORS CORP
HAVE INDICATED THAT THEY TOO HAD CONSIDERED A PARTNERSHIP WITH MR HAYEK
BUT DECIDED AGAINST IT EVEN SO THE LIFESTYLE APPEAL OF SWATCH CERTAINLY
IS A GREAT MARKETING CONCEPT ONE OPEL OFFICIAL ACKNOWLEDGED

THE EXACT STRUCTURE OF THE COOPERATION BETWEEN MERCEDES AND SMH MUST BE
NEGOTIATED IN THE COMING WEEKS A MERCEDES SPOKESMAN SAID INDUSTRY INSIDERS
SPECULATED THAT MERCEDES PROBABLY WOULD SEEK TO HOUSE THE PROJECT IN AN
INDEPENDENT SUBSIDIARY TO CLEARLY DISTINGUISH BETWEEN SWATCHMOBILE AND
MERCEDES OPERATIONS THAT WAY IF THE PROJECT WERE TO RUN INTO PROBLEMS IT
WOULDN'T HURT MERCEDES DIRECTLY 9402230155 940223 RAWSTEEL PRODUCTION 
ROSE 36 LAST WEEK

WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 36 LAST
WEEK TO 1871000 TONS FROM 1806000 TONS THE PREVIOUS WEEK THE AMERICAN
IRON AND STEEL INSTITUTE SAID

LAST WEEK'S OUTPUT ROSE 41 FROM THE 1798000 TONS PRODUCED A YEAR
EARLIER

THE INDUSTRY USED 909 OF ITS CAPABILITY LAST WEEK COMPARED WITH 876 THE
PREVIOUS WEEK AND 85 A YEAR AGO

THE AMERICAN IRON AND STEEL INSTITUTE REPORTED

THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT
WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A
GIVEN WEEK 9402230154 940223 WHO'S NEWS OCCIDENTAL PETROLEUM CORP

OCCIDENTAL PETROLEUM CORP LOS ANGELES SA PETE SMITH WAS APPOINTED
EXECUTIVE VICE PRESIDENTWORLDWIDE FINANCE AND CHIEF FINANCIAL OFFICER
OF OCCIDENTAL OIL & GAS CORP AN OIL AND GAS SUBSIDIARY BASED IN
BAKERSFIELD CALIF MR SMITH 49 YEARS OLD CONTINUES AS A VICE PRESIDENT
OF THE PARENT A DIVERSIFIED COMPANY WITH INTERESTS IN NATURAL RESOURCES
CHEMICALS AND FOOD PROCESSING 9402230153 940223 WHO'S NEWS THREE MORE
IBM DIRECTORS ARE LEAVING INCLUDING JOHN R OPEL EXCHAIRMAN  BY
LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THREE MORE DIRECTORS PLAN TO LEAVE THE BOARD OF INTERNATIONAL
BUSINESS MACHINES CORP SLIMMING IT DOWN TO 11 MEMBERS AND GIVING CHAIRMAN
LOUIS V GERSTNER JR A NEW OPPORTUNITY TO PUT HIS OWN IMPRINT ON ITS
COMPOSITION

JOHN R OPEL 69 YEARS OLD WHO SERVED AS CHAIRMAN OF IBM FROM 1983 TO 1986
AND OVERSAW THE MASSIVE BUILDUP OF PLANT AND PERSONNEL THAT MR GERSTNER IS
NOW DISASSEMBLING WILL BE THE MOST SIGNIFICANT FORCE TO RETIRE

AFTER PASSING THE REINS TO MR GERSTNER'S PREDECESSOR JOHN F AKERS MR
OPEL HAD RETAINED CONSIDERABLE INFLUENCE IN HEADING THE BOARD'S POWERFUL
EXECUTIVE COMMITTEE BUT MR GERSTNER RESTRUCTURED THE BOARD LAST SUMMER AND
NAMED HIMSELF TO REPLACE MR OPEL AS CHAIRMAN OF THE EXECUTIVE COMMITTEE
MR OPEL REMAINED A DIRECTOR BUT THERE HAD BEEN SPECULATION THAT HE WOULD
SOON LEAVE

THE TWO OTHER DIRECTORS WHO WILL JOIN MR OPEL IN RETIRING FROM THE BOARD IN
APRIL ARE THOMAS F FRIST JR 55 CHAIRMAN OF COLUMBIA/HCA HEALTHCARE
CORP AND JUDITH RICHARDS HOPE 53 A SENIOR PARTNER IN THE LAW FIRM OF
PAUL HASTINGS JANOFSKY & WALKER NEITHER WAS STEEPED IN TECHNOLOGY AND
MR GERSTNER NO TECHNOLOGY VETERAN HIMSELF IS INTENT ON APPOINTING MORE
HIGHTECHSAVVY ADVISERS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER

A SPOKESMAN SAID NO SUCCESSORS HAVE BEEN NAMED YET AND THERE AREN'T ANY
NOMINATIONS INCLUDED IN THE PROXY STATEMENT FOR THE ANNUAL MEETING THE IBM
BOARD WON'T MEET AGAIN UNTIL THE ANNUAL SHAREHOLDER MEETING SCHEDULED FOR
APRIL 25 IN TORONTO BUT MR GERSTNER COULD STILL NOMINATE REPLACEMENTS IN
TIME FOR THEM TO BE VOTED ON AT THE ANNUAL MEETING THE IBM SPOKESMAN SAID

UNDER IBM BYLAWS THE BOARD'S SIZE CAN RANGE FROM NINE TO 25 MEMBERS SINCE
MR GERSTNER CAME TO IBM IN APRIL 1993 EIGHT DIRECTORS HAVE RETIRED BUT SO
FAR MR GERSTNER HAS NAMED JUST ONE NEW BOARD MEMBER CHARLES F KNIGHT
CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EMERSON ELECTRIC CO

OTHER FREQUENTLY MENTIONED POSSIBILITIES ARE GEORGE FISHER THE FORMER
CHAIRMAN OF MOTOROLA INC WHO NOW IS AT EASTMAN KODAK CO AND JACK WELCH
CHAIRMAN OF GENERAL ELECTRIC CO WHOM MR GERSTNER HAS LONG ADMIRED FOR HIS
ABILITY TO TURN AROUND A COMPLEX AND DISPARATE ORGANIZATION

IBM'S ANNOUNCEMENT OF THE BOARD DEPARTURES YESTERDAY INCLUDED A TERSE
COMMENT FROM MR GERSTNER THANKING THE DEPARTING DIRECTORS FOR THEIR
CONTRIBUTIONS 9402230152 940223 DEERE POSTS PROFIT FAR ABOVE ESTIMATES 
FOR ITS FIRST QUARTER STOCK CLIMBS 68  BY CARL QUINTANILLA 
STAFF REPORTER OF THE WALL STREET JOURNAL

DEERE & CO HELPED BY STRENGTHENING DEMAND FROM THE AGRICULTURAL SECTOR
REPORTED FISCAL FIRSTQUARTER EARNINGS SUBSTANTIALLY HIGHER THAN WALL STREET
HAD BEEN EXPECTING

THE REPORT CAUSED DEERE SHARES TO JUMP 68 AND SPARKED BUYING IN A BROAD
RANGE OF ECONOMICALLY SENSITIVE STOCKS

THE MOLINE ILL MAKER OF AGRICULTURAL EQUIPMENT REPORTED NET INCOME OF 87
MILLION OR 102 A SHARE IN THE LATEST PERIOD ENDED JAN 31 COMPARED
WITH THE YEAREARLIER PERIOD'S OPERATING LOSS OF 369 MILLION OR 48 CENTS
A SHARE IN LAST YEAR'S QUARTER A BIG ACCOUNTING CHARGE GAVE THE COMPANY A
NET LOSS OF 114 BILLION OR 1478 A SHARE

REVENUE ROSE 21 TO 173 BILLION FROM 142 BILLION

THE PERSHARE EARNINGS WERE FAR ABOVE THE ABOUT 48 CENTS MANY ANALYSTS HAD
PROJECTED THEY REALLY BEAT THE STREET SAID KAREN A UBELHART AN ANALYST
WITH LEHMAN BROTHERS WHO HAD BEEN CARRYING THE HIGHEST PROJECTION OF 75
CENTS A SHARE IT'S A HECK OF AN EARNINGS SURPRISE THE RESULTS ALSO
MARKED THE THIRD CONSECUTIVE QUARTER IN WHICH THE COMPANY BESTED
PROJECTIONS

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DEERE SHARES CLIMBED
525 TO 8250

DEERE'S SALES OF AGRICULTURAL EQUIPMENT AT 887 MILLION WERE UP A SOLID
29 FROM THE YEARAGO PERIOD THE UPTURN REFLECTS INCREASED DEMAND FROM
FARMERSLESS BURDENED BY DEBT AND ENCOURAGED BY LOWER INTEREST RATES WHO
HAVE BEGUN TO REPLACE THEIR AGING COMBINES AND TRACTORS FARMERS WHO HAVE
HELD OFF SIMPLY HAVE TO REPLACE THEIR EQUIPMENT A DEERE SPOKESMAN SAID

THE FARMER'S PSYCHOLOGY IS MUCH MORE OPTIMISTIC THAN IT WAS IN THE RECENT
PAST SAID MS UBELHART OF LEHMAN BROTHERS THEY'VE WANTED TO HOLD ON TO
MONEY EVEN WHEN THEY'VE HAD A STRONG BALANCE SHEET NOW IT'S A SITUATION OF
FEELING RICH AND IN FACT BEING RICH

DEERE SAID IT EXPECTS WORLDWIDE PRODUCTION TONNAGE FOR 1994 TO BE ABOUT 13
HIGHER THAN IN 1993 DESPITE WEAKNESS IN THE EUROPEAN MARKET THAT REGION'S
AGRICULTURAL SECTOR REMAINS IN THE MIDST OF FUNDAMENTAL CHANGE BECAUSE OF
CHANGING AGRICULTURAL POLICIES SAID DEERE'S CHAIRMAN AND CHIEF EXECUTIVE
OFFICER HANS W BECHERER

AS A RESULT ANALYSTS EXPECT DEERE TO CONTINUE TO TRIM ITS EUROPEAN
OPERATION THE COMPANY SAID THAT WHILE THE LONGTERM SALES TREND IS DOWNWARD
IN EUROPE IT EXPECTS AGRICULTURAL EQUIPMENT SALES THIS YEAR TO ABOUT MATCH
THOSE OF 1993

ANALYSTS CITED DEERE'S INCREASED PRODUCTIVITY AND COSTCUTTING MEASURES AS
BIG REASONS FOR THE FIRSTQUARTER RESULTS IN RECENT YEARS DEERE HAS CUT
NEARLY A THIRD OF ITS WORK FORCE THE MOVE HAS BEEN IN LINE WITH OTHER US
MANUFACTURERS THAT HAVE SLIMMED DOWN SINCE THE 1980S THESE COMPANIES ARE
SO LEAN NOW SAID BARRY BANNISTER AN ANALYST WITH SG WARBURG AS THE
DEMAND RETURNS IT'S GOING TO BE GREEN ACRES FOR DEERE AND THEIR
COMPETITORS 9402230151 940223 WHO'S NEWS ARMSTRONG WORLD INDUSTRIES
INC

ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA WILLIAM W ADAMS
CHAIRMAN OF THIS PRODUCER OF FLOOR COVERINGS AND BUILDING PRODUCTS SAID HE
PLANS TO RETIRE BY THE END OF THIS YEAR MR ADAMS 59 YEARS OLD WON'T SEEK
BOARD REELECTION IN APRIL THE BOARD SAID IT EXPECTS TO ELECT GEORGE A
LORCH ARMSTRONG'S 52YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER TO THE
ADDED POST OF CHAIRMAN MR ADAMS WILL CONTINUE AS A MEMBER OF ARMSTRONG'S
SENIOR MANAGEMENT UNTIL JULY 1 AND FOR THE REST OF THE YEAR WILL SERVE ON
THE COMPANY'S BEHALF IN SEVERAL IMPORTANT COMMUNITY INITIATIVES IN
LANCASTER AS WELL AS IN A STATEWIDE EDUCATIONAL IMPROVEMENT PROGRAM THE
BOARD SAID ANOTHER DIRECTOR W WALLACE ABBOTT WILL RETIRE IN APRIL
REDUCING THE NUMBER OF DIRECTORS TO NINE 9402230150 940223 MORRISON
KNUDSEN'S CONTRACT

BOISE IDAHO MORRISON KNUDSEN CORP SAID IT WON A 20 MILLION CONTRACT TO
INSTALL LIGHT RAIL TRACK IN LOS ANGELES

THE CONTRACT WAS AWARDED BY THE LOS ANGELES COUNTY TRANSPORTATION AUTHORITY
CONSTRUCTION SCHEDULED TO BEGIN IMMEDIATELY WILL RUN THROUGH EARLY 1997

THE ENGINEERING AND CONSTRUCTION CONCERN SAID IT ALSO IS THE APPARENT LOW
BIDDER ON A 27 MILLION CONTRACT FOR LAYING LIGHT RAIL NEAR PORTLAND ORE
9402230149 940223 MARKETING & MEDIA HIHO HIHO OFF TO THE VIDEO
STORES SNOW WHITE' GOES  UNEXPECTED MOVE BY DISNEY SHIFTS THE
SPOTLIGHT AWAY FROM TROUBLES IN EUROPE  BY THOMAS R KING STAFF
REPORTER OF THE WALL STREET JOURNAL

LAKE BUENA VISTA FLA EVEN IN NEVERLAND NEVER SAY NEVER

WALT DISNEY CO WHOSE EXECUTIVES LONG HAVE MAINTAINED THAT SNOW WHITE AND
THE SEVEN DWARFS WOULD NEVER BE RELEASED ON VIDEOCASSETTE YESTERDAY
CHANGED ITS MIND IT ANNOUNCED PLANS FOR HOMEVIDEO SALES OF THE MOVIE ITS
FIRST AND MOST FAMOUS ANIMATED FILM FOR A LIMITED TIME WORLDWIDE THIS
FALL IT PREDICTED SNOW WHITE WOULD BECOME AMONG THE TOP VIDEO SELLERS OF
ALL TIME

THE UNEXPECTED ANNOUNCEMENT MADE AT ITS ANNUAL MEETING AT WALT DISNEY WORLD
HERE BROUGHT CHEERS FROM DISNEY SHAREHOLDERS AND HELPED SHIFT THE SPOTLIGHT
AWAY FROM EURO DISNEY THE TROUBLED THEME PARK IN FRANCE THAT IS GIVING THE
COMPANY MAJOR HEADACHES DISNEY CHAIRMAN MICHAEL D EISNER RECENTLY CALLED
EURO DISNEY'S PERFORMANCE DREADFUL

BUT MR EISNER LARGELY SIDESTEPPED EURO DISNEY AT YESTERDAY'S MEETING
TELLING SHAREHOLDERS THAT HE AND DISNEY PRESIDENT FRANK WELLS HAVE NOTHING
NEW TO REPORT ON THE SUBJECT MR EISNER QUIETED A COUPLE OF SHAREHOLDER
QUESTIONS ABOUT THE RESORT BY SAYING IT WOULD BE INAPPROPRIATE TO COMMENT
BECAUSE OF THE COMPANY'S CURRENT PRIVATE TALKS AIMED AT A FINANCIAL
RESTRUCTURING FOR EURO DISNEY

WHILE DISNEY IN RECENT YEARS HAS RECORDED HUGE PROFITS FROM HOMEVIDEO
SALES SOME EXECUTIVES HAD WANTED SNOW WHITE HELD BACK FROM RELEASE
BECAUSE THEY FEARED THAT WIDE AVAILABILITY WOULD HURT FUTURE THEATRICAL
RUNS

THE DECISION TO RELEASE IT EXECUTIVES SAY REFLECTS A NEW VIEW THAT THE
VIDEO MARKET IS NOW SO BIG THAT IT CAN COEXIST WITH THE THEATRICAL MARKET
A RESTORED VERSION OF SNOW WHITE PLAYED IN THEATERS LAST YEAR AND COMPANY
EXECUTIVES SAY THEY WERE HAPPY WITH ITS BOXOFFICE GROSS OF APPROXIMATELY
50 MILLION

BUT THE ISSUE IS A TRICKY ONE FOR DISNEY WHICH HAS LONG WORKED TO MAXIMIZE
THE VALUE OF ITS FILM LIBRARY'S CROWN JEWELS AS IT CALLS ITS CLASSIC
ANIMATED FEATURES PINOCCHIO RELEASED ON VIDEOCASSETTE IN 1985 POSTED
DISAPPOINTING BOXOFFICE RETURNS WHEN RERELEASED IN THEATERS IN 1992 THE
FOLLOWING YEAR HOWEVER THE MOVIE WAS RELEASED AGAIN ON VIDEO AND WENT ON
TO SELL A VERY STRONG 12 MILLION UNITS

SOME EXECUTIVES AT DISNEY BELIEVE SNOW WHITE HAS THE POTENTIAL TO SELL
MORE THAN 20 MILLION UNITS I DEFINITELY EXPECT THIS TO BE ONE OF THE TOP
SELLERS OF ALL TIME SAID ANN DALY PRESIDENT OF DISNEY'S HOMEVIDEO UNIT
MS DALY SAID DISNEY GETS MORE REQUESTS FOR A HOMEVIDEO RELEASE OF SNOW
WHITE THAN FOR ANY OTHER OF ITS ANIMATED MOVIES

DISNEY'S ALADDIN WHICH SO FAR HAS SOLD ABOUT 24 MILLION UNITS HOLDS THE
TITLE AS BIGGEST VIDEO SELLER THE COMPANY HASN'T YET SET THE PRICE FOR
SNOW WHITE OR THE DATE IT WILL GO ON SALE

SEPARATELY DISNEY PROMOTED RICHARD D NANULA SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER TO THE POST OF EXECUTIVE VICE PRESIDENT
9402230148 940223 INTERNATIONAL GERMAN FIRM'S LOSSES GO ON INTO
FISCAL '94  BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET
JOURNAL

FRANKFURT METALLGESELLSCHAFT AG CHAIRMAN KAJO NEUKIRCHEN SAID THE GERMAN
CONGLOMERATE'S HUGE LOSSES IN FISCAL 1993 CONTINUED INTO THE FISCAL FIRST
QUARTER OF THIS YEAR

BUT IN HIS FIRST MAJOR PUBLIC APPEARANCE SINCE TAKING OVER IN DECEMBER MR
NEUKIRCHEN MADE A STRONG BID TO RESTORE PUBLIC CONFIDENCE IN
METALLGESELLSCHAFT AND PAVE THE WAY FOR A SHAREHOLDERS MEETING IN FRANKFURT
TOMORROW AT WHICH MANAGEMENT WILL SEEK APPROVAL OF A 14 BILLIONMARK 818
MILLION CAPITAL INCREASE

WE HAVE TO START FROM THE GROUND UP HE SAID ADDING THAT MANAGEMENT IS
STILL IN THE PROCESS OF FIGURING OUT WHAT NEEDS TO BE DONE HE ALSO PLEADED
WITH THE PUBLIC NOT TO HANG THE BEARER OF BAD NEWS

ON THE FRANKFURT STOCK EXCHANGE METALLGESELLSCHAFT ROSE 650 MARKS OR
37 TO 182 MARKS IN A DECLINING MARKET ON MONDAY METALLGESELLSCHAFT
SHARES DROPPED AROUND 10

METALLGESELLSCHAFT THE 14TH LARGEST INDUSTRIAL GROUP IN GERMANY WAS PULLED
BACK FROM THE BRINK OF BANKRUPTCY EARLY THIS YEAR BY A MASSIVE 34
BILLIONMARK BAILOUT PLAN HAMMERED TOGETHER BY CREDITOR BANKS AND
SHAREHOLDERS THE CAPITAL INFUSION THAT THE COMPANY IS SEEKING TOMORROW IS
PART OF THAT RESCUE OPERATION

THE COMPANY'S STAGGERING 187 BILLIONMARK PRETAX LOSS IN THE FISCAL YEAR
ENDED LAST SEPTEMBER WAS LARGELY ATTRIBUTABLE TO LOSSES FROM SPECULATIVE
OILTRADING DEALS MADE THROUGH METALLGESELLSCHAFT CORP OF THE US UNDER
THE AEGIS OF FORMER CHAIRMAN HEINZ SCHIMMELBUSCH MR NEUKIRCHEN SAID MR
SCHIMMELBUSCH AND HIS MANAGEMENTBOARD COLLEAGUES WERE DISMISSED IN DECEMBER
FOR ALLEGEDLY FAILING TO ADEQUATELY INFORM THE SUPERVISORY BOARD OF THE
BUSINESS PROBLEMS PUBLIC PROSECUTORS ARE CURRENTLY INVESTIGATING THE
EXMANAGERS' ACTIONS

IN THE FIRST QUARTER OF FISCAL 1994 THE EXPOSURE FROM THE PROBLEMATIC OIL
CONTRACTS ON THE NEW YORK MERCANTILE EXCHANGE RESULTED IN A FURTHER 15
BILLION MARKS IN LOSSES MR NEUKIRCHEN SAID HOWEVER HE SAID HEDGES HAD
NOW BEEN PUT IN PLACE TO LIMIT FUTURE LOSSES AND THE PROCESS OF UNWINDING
US OIL POSITIONS HAS GONE FASTER THAN EXPECTED FIRSTQUARTER PRETAX
PROFIT WAS 646 MILLION MARKS EXCLUDING LOSSES FROM OILTRADING HE SAID
THAT WOULD CREATE A FULL GROUP FIRSTQUARTER PRETAX LOSS OF ABOUT 14
BILLION MARKS MR NEUKIRCHEN SAID 9402230147 940223 INTERNATIONAL BIG
JAPANESE ELECTRONICS FIRMS BEGIN TO SEE TURNAROUND AFTER LONG SLIDE 
 BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL

TOKYO JAPAN'S BIGGEST ELECTRONICS CONCERNS MIRED IN ONE OF THEIR
WORSTEVER SLUMPS FOR MUCH OF THE PAST THREE YEARS MAY BE STARTING TO SEE
SOME LIGHT AT THE END OF THE TUNNEL

OF THE SEVEN LARGEST ELECTRONICS COMPANIES IN JAPAN THREE NEC CORP
FUJITSU LTD AND SONY CORP ARE EXPECTING TO REVERSE SEVERAL YEARS OF
SHRINKING PROFITS WITH POSITIVE IF SLENDER GAINS IN CONSOLIDATED PRETAX
PROFIT IN THE YEAR ENDING MARCH 31 ANOTHER BIG COMPANY TOSHIBA CORP SAID
IT IS CONSIDERING RAISING ITS EARNINGS FORECAST FOR THAT PERIOD ALTHOUGH
THE COMPANY WON'T YET SAY WHETHER POSITIVE EARNINGS GROWTH WILL RESULT

TO MANY ANALYSTS THESE SIGNS SUGGEST THAT JAPAN'S BATTERED ELECTRONICS
SECTOR MIGHT FINALLY BE PICKING ITSELF UP AFTER ITS LONG PLUNGE FROM GRACE
 A FALL PROMPTED BY A DEARTH OF HIT PRODUCTS STRUCTURAL CHANGES IN THE
COMPUTER INDUSTRY AND THE JAPANESE RECESSION TO A CERTAIN EXTENT THE
WORST IS OVER SAID LEE KERK PHUA AN ANALYST WITH BARING SECURITIES
JAPAN LTD WHO PREDICTED THAT EARNINGS IN THE SECTOR WILL IMPROVE AN
ADDITIONAL 20 TO 30 IN THE COMING FISCAL YEAR

ANALYSTS GENERALLY CREDIT THE FACT THAT SEVERAL KEY PRODUCT SECTORS MOST
NOTABLY SEMICONDUCTORS BUT ALSO COMMUNICATIONS EQUIPMENT AND EVEN THE
LONGSTAGNANT CONSUMERELECTRONICS MARKET ARE SHOWING SIGNS OF LIFE AS A
RESULT OF CYCLICAL RECOVERY

AT THE SAME TIME THE ELECTRONICS CONCERNS' COSTCUTTING MEASURES ARE
STARTING TO TAKE EFFECT ON TUESDAY FOR INSTANCE MATSUSHITA ELECTRIC
INDUSTRIAL CO REPORTED THAT CONSOLIDATED PRETAX PROFIT DURING ITS FISCAL
THIRD PERIOD FELL 33 TO 47 BILLION YEN 4436 MILLION FROM 49 BILLION
YEN IN THE YEAREARLIER PERIOD ON SALES THAT DECLINED 63 TO 1764
TRILLION YEN FROM 1883 TRILLION ANALYSTS GENERALLY HAILED THE RESULTS AS
EVIDENCE THAT MATSUSHITA'S COST CUTTING IS BEGINNING TO REVERSE ITS PROFIT
SLIDE

MATSUSHITA ALSO LOWERED ITS PRETAX PROFIT FORECAST FOR THE YEAR ENDING MARCH
31 TO 120 BILLION YEN FROM ITS EARLIER PROJECTION OF 150 BILLION YEN CITING
AN EXTRAORDINARY CHARGE IT WILL TAKE TO BAIL OUT NL FINANCE CO A TROUBLED
FINANCIALSERVICES SUBSIDIARY

TO BE SURE THE ELECTRONICSINDUSTRY RECOVERY SO FAR IS WEAK AND COULD
EASILY BE DERAILED SHOULD THE YEN STRENGTHEN AGAIN FOR INSTANCE EARNINGS
AT THESE EXPORTINTENSIVE COMPANIES WOULD BE THE FIRST CASUALTY A HIGH YEN
MAKES JAPANESE EXPORTS MORE EXPENSIVE OVERSEAS AND REDUCES THE
YENDENOMINATED VALUE OF OVERSEAS SALES

SIMILARLY FEW ANALYSTS BELIEVE THAT THE EXPECTED RISE IN EARNINGS WILL HELP
THE COMPANIES MUCH IN THE LONG RUN UNLESS THEY ALSO DEAL WITH LONGSTANDING
INEFFICIENCIES SUCH AS OVERSTAFFING AND OVERLY BROAD PRODUCT LINES THE
ONLY THING I'M CONCERNED ABOUT IS THAT THESE COMPANIES WILL GET LULLED INTO
A FALSE SENSE OF SECURITY AND WON'T PRESS FORWARD WITH THE SUBSTANTIAL
RESTRUCTURING THEY NEED SAID PETER WOLFF AN ANALYST WITH CS FIRST BOSTON
JAPAN LTD WHO ADDED THAT HE DOESN'T SEE ANY SIGNS OF OVERCONFIDENCE YET

FOR NOW HOWEVER MANY ANALYSTS ARE SIMPLY GLAD TO SEE THE ELECTRONICS FIRMS
STRUGGLE TO THEIR FEET EVEN IF THEIR FOOTING IS SHAKY THE TURNAROUND IS
MOST NOTICEABLE AT FUJITSU AND NEC WHICH BOTH RAN CONSOLIDATED PRETAX
LOSSES LAST YEAR IN PART BECAUSE OF A DOWNSIZING TREND AWAY FROM
EXPENSIVE MAINFRAME COMPUTERS TO SMALLER MACHINES SUCH AS WORKSTATIONS AND
PERSONAL COMPUTERS

BOTH COMPANIES HAVE BENEFITED HANDSOMELY FROM A POWERFUL UPTURN IN THE
SEMICONDUCTOR MARKET AS WELL AS FROM DEMAND FOR TELECOMMUNICATIONS
EQUIPMENT NEC AND FUJITSU HAVE ALSO PURSUED EFFECTIVE COSTCUTTING
PROGRAMS ANALYSTS SAY FUJITSU FOR INSTANCE SAID ITS PERSONNEL COSTS HAVE
STARTED TO FALL AS ITS ATTRITION STRATEGY STARTS TO TAKE EFFECT AND ADDED
THAT IT WILL END UP CUTTING RESEARCH AND DEVELOPMENT SPENDING BY 10 TO 15
THIS YEAR AS A RESULT OF CONSOLIDATING RESEARCH PROJECTS

SONY AND MATSUSHITA BY CONTRAST MAY SEE SOME EARNINGS GROWTH AS A RESULT
OF REPLACEMENT DEMAND FOR AUDIO PRODUCTS AND WIDESCREEN TELEVISION SETS
BUT STILL DESPERATELY NEED NEW HIT PRODUCTS ANALYSTS SAY CHUCK GOTO OF
SG WARBURG JAPAN INC FOR INSTANCE THINKS THAT SONY NEXT YEAR MAY
BEGIN SEEING SOME FINANCIAL RETURNS ON ITS MINIDISC PRODUCT WHICH PLAYS
25INCH RECORDABLE COMPACT DISKS MATSUSHITA'S MAIN NEW OFFERINGS BY
CONTRAST A FLATSCREEN TV AND A MULTIMEDIA GAME PLAYER DESIGNED BY 3DO
CO HAVE SO FAR FALLEN FLAT

MOST PROBLEMATIC ARE FIRMS LIKE TOSHIBA HITACHI LTD AND MITSUBISHI
ELECTRIC CORP WHOSE BOOMING HEAVY POWER EQUIPMENT AND SEMICONDUCTOR
BUSINESSES HAVE LARGELY OFFSET DECLINES IN COMPUTERS AND CONSUMER
ELECTRONICS ANALYSTS SUCH AS SHIGERU YOSHINAKA OF BARCLAYS DE ZOETE WEDD
RESEARCH JAPAN LTD SAID THE COMPANIES HAVE GROWN TOO COMFORTABLE WITH THE
STEADY INCOME THEY DERIVE FROM BUILDING NUCLEAR PLANTS AND THAT THEY HAVE
PUT OFF NECESSARY RESTRUCTURING AS A RESULT 9402230145 940223 FORD MAY
KEEP AGING MINIVAN AEROSTAR ALIVE  SALES OF REARWHEELDRIVE 
VEHICLE SET '93 RECORD FACTORY POSES DILEMMA  BY JACQUELINE
MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL

DEARBORN MICH FORD MOTOR CO WHICH HAS BEEN PREPARING TO KILL ITS
AGING AEROSTAR MINIVAN IN AUGUST IS NOW STUDYING WHETHER TO GIVE IT A NEW
LEASE ON LIFE

SALES OF THE REARWHEELDRIVE MINIVAN HIT A RECORD PACE IN 1993 WHICH PUTS
FORD IN A QUANDARY THE AUTO MAKER PLANNED TO DISCONTINUE AEROSTAR
PRODUCTION FOLLOWING THE SPRING INTRODUCTION OF ITS NEW FRONTWHEELDRIVE
WINDSTAR MINIVAN THAT WAY FORD COULD EXPAND OUTPUT OF ITS HOTSELLING
EXPLORER SPORTUTILITY VEHICLE TO THE ST LOUIS ASSEMBLY PLANT

NOW FORD SAYS IT IS REEVALUATING THAT STRATEGY THE TROUBLE IS THAT FORD
CAN'T BUILD REARWHEELDRIVE AEROSTARS IN THE SAME ASSEMBLY PLANT WITH
FRONTWHEELDRIVE EXPLORERS

MINIVAN SALES SURGED IN 1993 AND SALES OF THE LESS POPULAR REARWHEELDRIVE
MINIVANS BENEFITED IT DIDN'T HURT THAT FORD ALSO SLAPPED A 1000 REBATE ON
AEROSTAR LAST YEAR BUT IT HAS SINCE CUT THE REBATE IN HALF AS A RESULT
FORD SOLD A RECORD 191148 AEROSTARS IN 1993 AND SALES IN JANUARY JUMPED
689 OVER A YEAR EARLIER

HOWEVER FORD DEALERS ARE BEGGING FOR MORE EXPLORERS SAYING THEY COULD SELL
MORE IF THEY HAD THEM EXPLORER SALES WERE FLAT WITH YEAREARLIER LEVELS
AND THE LOUISVILLE KY ASSEMBLY PLANT THAT BUILDS THE EXPLORER HAS BEEN
WORKING OVERTIME TO PRODUCE EXPLORERS

THIS IS ONE OF MANY PRODUCTIONCAPACITY STUDIES THAT WE'RE DOING A FORD
SPOKESMAN SAID AS PART OF IT WE'RE LOOKING AT THE POSSIBILITY OR NEED TO
CONTINUE WITH PRODUCTION OF THE AEROSTAR NO DECISION HAS BEEN MADE

FOR NOW FORD IS GOING AHEAD WITH PLANS TO SPEND 400 MILLION TO RECONFIGURE
THE ST LOUIS PLANT TO BUILD AN ADDITIONAL 230000 EXPLORERS ANNUALLY
BEGINNING NEXT JANUARY BESIDES EXPLORERS THE LOUISVILLE ASSEMBLY PLANT
ALSO BUILDS THE FORD RANGER COMPACT PICKUP AND THE MAZDA NAVAJO SPORTS
UTILITY VEHICLE THEORETICALLY FORD COULD JUST DELAY EXPANDING EXPLORER
OUTPUT

FORD WOULD HAVE TO FIND ANOTHER ASSEMBLY PLANT TO EXPAND EXPLORER PRODUCTION
OR SPEND A LOT OF MONEY RETOOLING AN ASSEMBLY PLANT TO BUILD AEROSTARS
INDUSTRY ANALYSTS SAID FORD MAY NOT WANT TO DOUBLE EXPLORER CAPACITY AND
MAY CONSIDER EXPANDING PRODUCTION OF THE SPORTUTILITY VEHICLE AT OTHER
ASSEMBLY PLANTS

CHRYSLER CORP IS CONSIDERING EXPANDING OUTPUT OF ITS JEEP GRAND CHEROKEE
SPORTUTILITY VEHICLE AND GENERAL MOTORS CORP HAS ALREADY ANNOUNCED PLANS
TO BOOST PRODUCTION OF ITS S10 BLAZER SPORTUTILITY VEHICLES

REARWHEELDRIVE MINIVANS AREN'T BIG SELLERS LIKE THEIR FRONTWHEELDRIVE
COUNTERPARTS BUT THEY HAVE A FEW ENTHUSIASTS THE REARWHEELDRIVE MINIVANS
HAVE MUCH BETTER TOWING CAPACITY THAN THE FRONTWHEELDRIVE VERSIONS IN
ADDITION TO FORD GM'S ASTRO AND SAFARI ARE THE ONLY OTHER COMPETING
REARWHEELDRIVE MINIVANS IN THAT SEGMENT

FORD IS TRYING TO FIGURE OUT HOW THEY CAN DO BOTH SAID PAINEWEBBER INC'S
ANALYST STEPHEN GIRSKY IT'S LIKE LEAVING MONEY ON THE TABLE BY TAKING
AEROSTAR OUT AND GM IS THE ONLY ONE LEFT TO PICK IT UP 9402230144
940223 WHO'S NEWS PLUM CREEK TIMBER CO LP

PLUM CREEK TIMBER CO LP SEATTLE GEORGE M DENNISON PRESIDENT OF THE
UNIVERSITY OF MONTANA IN MISSOULA WAS ELECTED TO THE BOARD OF THIS
FORESTPRODUCTS COMPANY THE ADDITION OF MR DENNISON 58 YEARS OLD
INCREASES BOARD MEMBERSHIP TO SEVEN 9402230143 940222 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 9402230142
940223 WHO'S NEWS COASTCAST CORP

COASTCAST CORP RANCHO DOMINGUEZ CALIF EDWIN A LEVY WAS ELECTED A
DIRECTOR OF THIS MAKER OF HEADS FOR GOLF CLUBS INCREASING THE BOARD TO
SEVEN MR LEVY 56 YEARS OLD IS FOUNDER AND PRINCIPAL OF LEVY HARKINS &
CO A NEW YORK INVESTMENTADVISORY FIRM 9402230141 940223 WHO'S NEWS 
SULCUS COMPUTER CORP

SULCUS COMPUTER CORP GREENSBURG PA LOUIS B LICHTENFELD 41 YEARS
OLD FORMERLY MANAGING DIRECTOR OF CORPORATE FINANCE AT RODMAN & RENSHAW
INC WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER OF COMPUTER
SYSTEMS FOR THE HOSPITALITY LEGAL AND REALESTATE MARKETS MR LICHTENFELD
FILLS A POSITION THAT HAS BEEN VACANT FOR ABOUT THREE YEARS DURING THAT
TIME THE DUTIES OF FINANCIAL CHIEF AT SULCUS HAD BEEN DIVIDED AMONG SEVERAL
EXECUTIVES INCLUDING THE CONTROLLER AND CHIEF ACCOUNTING OFFICER
9402230140 940223 PEPPERAND SALT

TO TAKE HIM TO THE VET'S

THEY BEG FOR YOUR ADVICE 9402230139 940223 POLITICS & POLICY CAPITAL
JOURNAL  BY GERALD F SEIB

WITH ALL THE PROBLEMS FACING HIS HEALTHCARE REFORM PLAN PRESIDENT CLINTON
DOESN'T NEED ANY NEW ONES YET ROBERT CASEY STANDS AS A REMINDER OF HOW THE
PRESIDENT COULD STUMBLE ACROSS A WHOPPER

MR CASEY IS THE GOVERNOR OF PENNSYLVANIA HE'S ALSO ONE OF THOSE RARE
CREATURES A DEMOCRAT WHO IS ARDENTLY OPPOSED TO ABORTION RIGHTS AND FOR
MORE THAN A MONTH GOV CASEY HAS BEEN QUIETLY YET OPENLY DEFYING THE
CLINTON ADMINISTRATION'S POSITION ON PUBLICLY FINANCED ABORTIONS WE'RE
DEAD SERIOUS ABOUT THIS HE SAYS MY SENSE IS THAT THEY'VE GOT TO BACK
OFF

PENNSYLVANIA'S STANDOFF WITH THE WHITE HOUSE MIGHT APPEAR TO BE AN ARCANE
LAWYERS' DISPUTE WITH LITTLE RELATION TO THE THE NATION'S MUCH BROADER
HEALTHCARE DEBATE BUT IN FACT THE PENNSYLVANIA CASE IS A CAUTIONARY TALE
FOR THOSE WHO MIGHT WANT TO USE HEALTHCARE REFORM AS A VEHICLE FOR
EXPANDING ACCESS TO TAXPAYERFUNDED ABORTIONS

THE SAGA BEGAN LAST YEAR WHEN CONGRESS CHANGED THE HYDE AMENDMENT WHICH
RESTRICTS USE OF FEDERAL FUNDS FOR ABORTIONS THE LAW NAMED FOR ILLINOIS
REPUBLICAN REP HENRY HYDE HAD ALLOWED THE FEDERAL GOVERNMENT TO REIMBURSE
STATES FOR COSTS OF MEDICAID ABORTIONS FOR POOR WOMEN WHEN THE LIFE OF THE
MOTHER WAS IN JEOPARDY LAWMAKERS EXPANDED THAT TO ALLOW ABORTION FUNDING IN
CASES OF RAPE AND INCEST A COMPROMISE OFFERED BY REP HYDE TO KEEP
ABORTIONRIGHTS FORCES FROM KILLING HIS AMENDMENT

AS IT HAPPENS PENNSYLVANIA PASSED LEGISLATION SEVERAL YEARS AGO AGREEING TO
PAY FOR JUST SUCH ABORTIONS BUT PENNSYLVANIA'S LAWMAKERS ALSO DECIDED THEY
WOULD FUND THE ABORTIONS ONLY WHEN THE RAPE AND INCEST HAD BEEN REPORTED TO
LAWENFORCEMENT AGENCIES

IN THE WAKE OF THE NEW HYDE AMENDMENT THE FEDERAL GOVERNMENT'S HEALTH CARE
FINANCING ADMINISTRATION ARRIVED ON THE SCENE WITH ITS INTERPRETATION OF THE
NEW LAW AND SHOOK UP THIS FINELY TUNED BALANCE THE FEDS DECLARED THAT
STATEREPORTING REQUIREMENTS SUCH AS PENNSYLVANIA'S HAVE TO BE WAIVED AND
MEDICAID ABORTIONS FINANCED IF A DOCTOR CERTIFIES THAT A PATIENT WAS UNABLE
FOR PHYSICAL OR PSYCHOLOGICAL REASONS TO REPORT TO LAWENFORCEMENT AGENCIES

GOV CASEY PUT HIS FOOT DOWN IN A REMARKABLY BLUNT LETTER TO FELLOW
DEMOCRAT BILL CLINTON MR CASEY SAID PENNSYLVANIA HAD NO INTENTION OF
FOLLOWING THE FEDERAL INTERPRETATION IMPLEMENTING THIS DIRECTIVE WOULD
REQUIRE ME TO DISREGARD A VALIDLY ENACTED STATE STATUTE SERVING IMPORTANT
PUBLIC POLICY GOALS BASED SOLELY ON THE UNFOUNDED LEGAL INTERPRETATION OF A
FEDERAL OFFICIAL GOV CASEY WROTE THIS I CANNOT AND WILL NOT DO  

LEGALLY PENNSYLVANIA ARGUES THAT THE ADMINISTRATION'S DIRECTIVE DOESN'T
REFLECT THE INTENTIONS OF MEMBERS OF CONGRESS WHO DIDN'T WANT TO OVERRIDE
STATEREPORTING REQUIREMENTS IN THIS IT IS SUPPORTED BY REP HYDE HIMSELF
MOREOVER PENNSYLVANIA ARGUES THAT THE GUIDELINES NEVER SHOULD HAVE BEEN
IMPLEMENTED WITHOUT FIRST ALLOWING STATES A PERIOD TO COMMENT ON THEM

POLITICALLY GOV CASEY ARGUES THAT THE ADMINISTRATION'S ABORTION MANEUVER
HAS SIMPLY PUT BILL CLINTON A FORMER GOVERNOR IN AN EMBARRASSING POSITION
IT FLIES IN THE FACE OF THE CONTINUED ASSURANCES OF THE PRESIDENT THAT HE
WOULD CONSULT WITH GIVE DEFERENCE TO STATES GOV CASEY SAYS THIS IS
NOT HIS STYLE

BY ALL ACCOUNTS PRESIDENT CLINTON AGREES HE HIT THE WHITE HOUSE ROOF WHEN
HE FOUND OUT BELATEDLY ABOUT THE ABORTION DIRECTIVE BUT NOW HE HAS TO
LIVE WITH IT THE ADMINISTRATION COULD CUT OFF MEDICAID FUNDING TO
PENNSYLVANIA AND OTHER STATES TAKING SIMILAR STANDS THOUGH NOBODY IS
TALKING OF THAT INSTEAD ADMINISTRATION AIDES WHO INSIST THEIR
INTERPRETATION IS ON SOLID LEGAL GROUND ARE HOLDING QUIET DISCUSSIONS IN
HOPES OF WORKING WORK OUT A COMPROMISE THEY STRESS THAT THEY DON'T WANT TO
OVERTURN PENNSYLVANIA'S REPORTING REQUIREMENT BUT SIMPLY ALLOW FOR WAIVERS
IN SELECTED CASES STILL THERE'S LITTLE REASON TO EXPECT A CAVEIN FROM
GOV CASEY WHO JUST SURVIVED A HEARTLIVER TRANSPLANT AND PRESUMABLY
DOESN'T SCARE EASILY

SO WHAT DOES THIS STANDOFF HAVE TO DO WITH HEALTH REFORM STRICTLY SPEAKING
NOT MUCH AS CLINTON ADMINISTRATION AIDES HASTEN TO POINT OUT BUT
INDIRECTLY GOV CASEY SAYS IT SHOULD SEND THE ADMINISTRATION A POWERFUL
WARNING THE SAME FATE AWAITS ANY ATTEMPT TO INCLUDE ABORTION IN THE
HEALTHCARE PLAN

PRESIDENT CLINTON AND HILLARY RODHAM CLINTON ARE TRYING HARD TO KEEP
ABORTION FROM CREEPING INTO THE HEALTH DEBATE THE CLINTON HEALTH BILL
SKIRTS THE ISSUE ITS SECTION DESCRIBING THE SERVICES TO BE PROVIDED UNDER A
BASIC HEALTHBENEFITS PACKAGE EXTRAVAGANTLY DETAILED IN OTHER AREAS CALLS
SIMPLY FOR SERVICES FOR PREGNANT WOMEN LEAVING OTHERS TO DEFINE THAT
TERM

YET THERE'S NO DOUBT THAT SOME WILL TRY TO USE HEALTH REFORM TO EXPAND
ABORTION COVERAGE IF NOTHING ELSE GOV CASEY HAS DEMONSTRATED PERIL FOR
THE ADMINISTRATION DOWN THAT PATH 9402230138 940223 DIVIDEND NEWS US
HEALTHCARE INC

US HEALTHCARE INC BLUE BELL PA APPROVED A 3FOR2 STOCK SPLIT ON
COMMON AND CLASS B SHARES THE PROVIDER OF MANAGED HEALTHCARE SERVICES SAID
THE SPLIT WILL BE PAYABLE MARCH 29 TO STOCK OF RECORD MARCH 15 THE COMPANY
WHICH RECENTLY RAISED ITS QUARTERLY DIVIDENDS TO 20 CENTS ON COMMON AND 18
CENTS ON CLASS B SHARES SAID IT INTENDS TO PAY QUARTERLY DIVIDENDS OF
01334 ON COMMON AND 012 ON CLASS B SHARES AFTER THE SPLIT 9402230137
940223 FOREIGN EXCHANGE DOLLAR EASES AGAINST MOST CURRENCIES FED
CHAIRMAN'S TESTIMONY DIDN'T HELP  BY GARY ROSENBERGER SPECIAL TO
THE WALL STREET JOURNAL

NEW YORK THE DOLLAR SOFTENED AGAINST MOST MAJOR CURRENCIES TUESDAY IN
QUIET TRADING AS TESTIMONY BY ALAN GREENSPAN FEDERAL RESERVE BOARD
CHAIRMAN FAILED TO PROVIDE A SUFFICIENTLY CLEAR REASON TO EXTEND A RALLY
BEGUN MONDAY

TRADERS SAID THE MARKET ALSO APPEARS TO LACK CONVICTION FOLLOWING THE
DRUBBING THE DOLLAR TOOK AGAINST THE YEN AFTER THE COLLAPSE IN USJAPAN
TRADE TALKS

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17235 MARKS DOWN FROM 17303
MARKS LATE MONDAY IN LONDON BUT UP FROM 17140 MARKS LAST FRIDAY IN NEW
YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10565 YEN UP FROM
10460 YEN FRIDAY IN NEW YORK STERLING WAS TRADING AT 14790 DOWN FROM
14820 ON FRIDAY IN NEW YORK

ABOUT NOON ON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 105 YEN AND AT
17257 MARKS

FINANCIAL MARKETS AND BANKS IN THE US WERE CLOSED MONDAY FOR THE
PRESIDENTS DAY HOLIDAY

MR GREENSPAN IN COMMENTS BEFORE A CONGRESSIONAL SUBCOMMITTEE INDICATED
THE FED WAS LIKELY TO RAISE FURTHER SHORTTERM INTEREST RATES HE DECLINED
TO OFFER A TIMETABLE

THE FED'S CHIEF ALSO TERMED THE US ECONOMIC RECOVERY WELLENTRENCHED
AND EXPRESSED OPTIMISM THAT INFLATIONARY PRESSURES WERE CONTAINED HE SAID
PRICE PRESSURES APPEAR TO REMAIN DAMPED AND WAGES DON'T SEEM TO BE
ACCELERATING

NEVERTHELESS THE DOLLAR SLID SLIGHTLY ON THE TESTIMONY AS TRADERS
DISCOUNTED A FED RATE INCREASE IN THE NEAR TERM

THERE WAS NOTHING NEW IN WHAT HE SAID ACCORDING TO PAUL FARRELL VICE
PRESIDENT AT CHASE MANHATTAN ANY CENTRAL BANKER WOULD HAVE SAID THE SAME
THING

IF HE HAD SAID INFLATIONARY PRESSURES PERSIST AND SAID SO WITH SOME
URGENCY THE MARKET MIGHT HAVE REACTED DIFFERENTLY MR FARRELL ADDED

THE DOLLAR EARLIER HAD GAINED ON RUMORED BANK OF JAPAN INTERVENTION AND ON
STATEMENTS BY ONE OF THE JAPANESE RULING COALITION'S LEADING POWER BROKERS
ICHIRO OZAWA HEAD OF THE SHINSEITO PARTY HINTED THAT JAPAN MAY ACCEPT
NUMERICAL TRADE TARGETS TO AVERT A TRADE WAR WITH THE US

BUT THE UPWARD MOVE WHICH PUSHED THE DOLLAR TO AN INTRADAY PEAK OF 10649
YEN WASN'T SUSTAINED AND THE DOLLAR FELL BACK ON PROFITTAKING BY THE TIME
NORTH AMERICAN TRADING BEGAN THE US CURRENCY'S RALLY WAS LONG OVER AND
TRADING REMAINED IN NARROW LOWER RANGES

US TRADERS SAID MR OZAWA'S STATEMENTS DID LITTLE TO FUEL OPTIMISM FOR A
RESOLUTION OF THE TRADETALKS STALEMATE NOTING THERE WAS NO FOLLOWUP FROM
ANY JAPANESE OR US OFFICIALS

INDEED NORTH AMERICAN TRADING APPEARED TO BE HESITANT THROUGHOUT THE DAY
HURT FROM LAST WEEK'S MASSIVE DOLLAR LIQUIDATION SAID THOMAS BENFER
DIRECTOR OF FOREIGN EXCHANGE FOR THE BANK OF MONTREAL

IN PARTICULAR HE SAID INVESTMENT HEDGE FUNDS WHICH HAD BEEN BULLISH ON THE
DOLLAR BASED ON STRONG ECONOMIC FUNDAMENTALS FOR THE US WERE BADLY HURT
BY LAST WEEK'S PRECIPITOUS DOLLAR DECLINE

PEOPLE'S CONVICTIONS ARE BEING SHAKEN AT THIS POINT MR BENFER SAID
NOTING THE ABSENCE OF MANY BIG PLAYERS FROM THE FOREIGNEXCHANGE MARKET

MR BENFER ALSO NOTED A RELUCTANCE TO PLAY THE MARKET AHEAD OF THE GROUP OF
SEVEN INDUSTRIALIZED COUNTRIES' MEETING OF FINANCE MINISTERS THIS WEEKEND
9402230136 940223 TECHNOLOGY CANON INC AGREES TO DEVELOP PRODUCTS 
THAT USE IBM'S NEW POWERPC CHIP  BY LAURIE HAYS STAFF REPORTER OF
THE WALL STREET JOURNAL

CANON INC HAS AGREED TO BECOME INTERNATIONAL BUSINESS MACHINES CORP'S
FIRST PARTNER TO DEVELOP A LINE OF POWERPC PRODUCTS WHICH COULD EXTEND
BEYOND DESKTOP COMPUTERS AND INTO SUBNOTEBOOK COMPUTERS PERSONAL DIGITAL
ASSISTANTS AND OFFICE PRODUCTS

THE RELATIONSHIP ANNOUNCED YESTERDAY BY IBM PROVIDES THE ARMONK NY
COMPUTER GIANT WITH A MAJOR FAR EAST ENDORSEMENT OF THE NEW POWERPC CHIP AT
A TIME WHEN OTHER JAPANESE COMPANIES HAVE EMBRACED CHIPS MADE BY IBM'S
COMPETITORS CANON ALSO BECOMES THE THIRD LARGE PRODUCT MANUFACTURER AFTER
IBM AND POWERPC PARTNER APPLE COMPUTER INC TO COMMIT TO USING POWERPC IN
ENDUSER PRODUCTS

POWERPC IS THE JOINTLY DEVELOPED CHIP DESIGN OF IBM APPLE AND MOTOROLA INC
THAT SEEKS TO CHALLENGE THE DOMINANCE OF INTEL CORP IBM'S SEPARATE PACT
WITH CANON HOWEVER IS AN INDICATION THAT BIG BLUE IS LOOKING BEYOND
TRADITIONAL PARTNERS FOR NEW TIES THAT COULD EXPAND THE POSSIBLE USES OF ITS
POWERPC OFFERINGS

IT'S AN INDICATION OF WHERE IBM IS PLANNING TO GO WITH THE POWERPC SAID
WILLIAM BLUESTEIN OF FORRESTER RESEARCH INC CAMBRIDGE MASS

FOR CANON BESTKNOWN IN THE US FOR ITS COPIERS AND CAMERAS THE POWERPC
COULD HELP IT GAIN ENTRY INTO A NEW NICHE OF THE PC MARKET WHERE SO FAR IT
HASN'T HAD MUCH OF A PRESENCE

RICHARD GUARINO GENERAL MANAGER FOR IBM'S POWER PERSONAL SYSTEMS DIVISION
SAID IBM IS ACTIVELY SEEKING OTHER FAR EAST PARTNERS EVEN THOUGH COMPANIES
SUCH AS JAPAN'S SEGA ENTERPRISES LTD NINTENDO CO AND HITACHI LTD HAVE
MADE EARLY COMMITMENTS TO RIVAL MICROPROCESSORS INCLUDING SILICON GRAPHICS
INC'S MIPS CHIP AND SUN MICROSYSTEMS INC'S SPARC CHIP MR GUARINO
CONTENDS THAT MOST MANUFACTURERS ARE TAKING ANOTHER LOOK

NO MATTER WHAT THEY SAY PUBLICLY EVERYONE IS A CANDIDATE TO REEVALUATE
THEIR ARCHITECTURAL DESIGNS MR GUARINO SAID THEY'RE LOOKING FOR LOWEST
COST LARGEST BANDWIDTH TO LAST THROUGH THIS DECADE

AS PART OF THE AGREEMENT CANON WILL INVEST IN THE DEVELOPMENT OF POWERPC
AND PROMOTE IT AS A STRATEGIC DIRECTION FOR ITS COMPUTER AND OFFICE
PRODUCTS CANON HAS ALSO AGREED TO JOIN IBM AND MOTOROLA AS THEY PLAN FUTURE
DIRECTIONS FOR THE POWERPC CHIP SUCH AS EXTENDING ITS USE TO
CONSUMERORIENTED PRODUCTS

CANON HAS A HEAD START IN DEVELOPING POWERPC PRODUCTS BECAUSE IT PURCHASED
THE HARDWAREDESIGN CENTER OF NEXT COMPUTER INC ABOUT A YEAR AGO NEXT
FORMED BY APPLE COFOUNDER STEVEN P JOBS HAD BEEN WORKING ON PRODUCTS THAT
WOULD USE POWERPC BUT EVENTUALLY LEFT THE HARDWARE BUSINESS TO FOCUS ON
SOFTWARE CANON IN FACT RECENTLY ESTABLISHED POWERHOUSE SYSTEMS INC A
CALIFORNIA VENTURE THAT INCLUDES FORMER NEXT HARDWARE OFFICIALS TO DESIGN
POWERPC PRODUCTS

MR GUARINO SAID IBM AND CANON TOGETHER WILL DEVELOP A LOWEND DESKTOP
PERSONAL COMPUTER THAT WOULD SELL FOR LESS THAN 4000 AND COULD BE
AVAILABLE BY THE END OF THIS YEAR OTHER DEVELOPMENT WILL BE EXPANDED UP
AND DOWN THE LINE MR GUARINO SAID FOR EXAMPLE CANON MAY USE A PERSONAL
DIGITAL ASSISTANT DESIGN THAT IBM HAS CRAFTED OR THE TWO COMPANIES MAY
COOPERATE ON A NEW ONE CANON WILL BE ABLE TO BUY IBM COMPUTER COMPONENTS
AND PARTS OF MACHINES AND SELL THEM UNDER THE CANON TRADEMARK

IBM WILL ALSO USE CANON PRINTER AND DIGITALIMAGING TECHNOLOGY IN SOME OF
ITS DESIGNS ALREADY CANON AND IBM HAVE PRODUCED AN IBM THINKPAD THAT
CONTAINS A CANON BUBBLE JET PRINTER 9402230135 940223
TELECOMMUNICATIONS FCC VOTES TO REQUIRE CABLE RATE CUTS AND THIS TIME
CLAIMS IT WILL PREVAIL  BY MARY LU CARNEVALE AND MARK ROBICHAUX 
STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON MOST CABLETELEVISION CUSTOMERS WILL BE GETTING ANOTHER ROUND
OF RATE CUTS AND FEDERAL REGULATORS INSIST THIS TIME THEY REALLY MEAN IT

DESPITE PROTESTS FROM CABLETELEVISION OPERATORS THE FEDERAL COMMUNICATIONS
COMMISSION YESTERDAY VOTED UNANIMOUSLY TO REQUIRE WHAT AMOUNTS TO A 7
REDUCTION IN CABLETV RATES IN ADDITION TO A 10 CUT THE FCC ORDERED LAST
YEAR LAST YEAR'S ACTION HOWEVER STIRRED UP A STORM AMONG CONSUMERS AND IN
CONGRESS BECAUSE IT ACTUALLY RESULTED IN HIGHER BILLS FOR SOME CABLE
CUSTOMERS

THE COMMISSION ESTIMATES THAT THIS TIME ABOUT 90 OF THE 11000 CABLE
SYSTEMS NATIONWIDE WILL BE REQUIRED TO DROP PRICES FOR THE PACKAGE OF CABLE
SERVICE THAT INCLUDES LOCAL BROADCAST CHANNELS THE AMOUNT OF THE CUT
HOWEVER WILL VARY FROM SYSTEM TO SYSTEM AND SOME SYSTEMS WON'T BE REQUIRED
TO CUT PRICES AT ALL

CABLE OPERATORS REACTED ANGRILY TO THE FCC ACTION TIME WARNER INC THE
NATION'S SECONDLARGEST CABLE OPERATOR WITH 72 MILLION SUBSCRIBERS CALLED
THE NEW RULES ARBITRARY UNFAIR AND UNACCEPTABLE TIME WARNER'S CHAIRMAN
GERALD LEVIN SAID THIS ALREADY OUTDATED REGULATORY SCHEME WILL NOT HELP
FOSTER THE NECESSARY INVESTMENT THIS COUNTRY NEEDS IN NEW TECHNOLOGIES

AMOS B HOSTETTER JR CHIEF EXECUTIVE OF CONTINENTAL CABLEVISION INC THE
THIRDLARGEST CABLE OPERATOR SAID ABOUT THE FCC VOTE COMING AS IT DOES ON
TOP OF A YEARLONG RATE FREEZE AND A 10 SLASH IN INDUSTRY REVENUES IT IS
CLEARLY PUNITIVE

REED HUNDT THE FCC'S NEW CHAIRMAN PREDICTED THE RATE RULES WOULD SAVE
CONSUMERS ABOUT 3 BILLION A YEAR IN AN INTERVIEW HE REJECTED CLAIMS BY
MANY CABLE COMPANIES THAT THE NEW RULES WOULD HAMPER THEIR ABILITY TO BUILD
HIGHCAPACITY NETWORKS THAT CAN COMPETE WITH LOCAL PHONE COMPANIES TO CARRY
CONVERSATIONS AS WELL AS A WIDE RANGE OF INTERACTIVE PROGRAMMING CABLE
OPERATORS' OPPORTUNITY TO INVEST IN BROADBAND INTERACTIVE SERVICES IS JUST
AS GREAT AS IT EVER WAS HE SAID IN FACT WE'RE ENCOURAGING THEM TO LOOK
TO THESE NEW PRODUCTS FOR GREATER PROFITS

THE ACTION BY THE THREEMEMBER COMMISSION WAS TRIGGERED BY THOUSANDS OF
CONSUMER COMPLAINTS AS WELL AS A COMMISSION SURVEY THAT FOUND NEARLY A THIRD
OF CABLE SUBSCRIBERS WERE PAYING HIGHER RATES AFTER THE FIRST ROUND OF RATE
CUTS LAST APRIL SHORTLY AFTER BEING SWORN IN AS CHAIRMAN MR HUNDT
LAUNCHED A BROAD REVIEW OF THE CABLE RULES ECONOMISTS AND OTHER STAFF
MEMBERS STUDIED PRICE DIFFERENCES BETWEEN CABLE SYSTEMS THAT FACE
COMPETITION AND THOSE THAT DON'T THEY CAME UP WITH A 17 GAP A
LESSRIGOROUS EXERCISE LAST APRIL HAD TURNED UP A 10 PRICE DIFFERENTIAL
BETWEEN COMPETITIVE AND MONOPOLY CABLE SYSTEMS

BUT THAT WASN'T ALL THE STAFF ALSO PUT TOGETHER A PLAN THAT WOULD ALLOW
OPERATORS TO FILE DETAILED COST DATA WITH THE COMMISSION TO JUSTIFY RATES
ABOVE A BENCHMARK RATE THAT A COMPANY LIKELY WOULD CHARGE IF IT FACED ACTUAL
COMPETITION IN THE END THE COMMISSION VOTED YESTERDAY ON A COMPREHENSIVE
PACKAGE OF CABLE RULES THAT AT THE LEAST LIFTS THE CLOUD OF UNCERTAINTY
FOR CABLE OPERATORS THEIR BANKERS AND INVESTORS

IN RECENT MONTHS CABLE OPERATORS HAVE LOBBIED FIERCELY AGAINST RATE CUTS
ARGUING THAT LAST YEAR'S FEDERAL REGULATIONS HAVE ALREADY COST THEM 2
BILLION IN LOST REVENUE NONETHELESS REVENUE FOR MOST BIG CABLE OPERATORS
HAS CONTINUED TO RISE AND MANY CABLE OPERATORS ARE IN A BETTER POSITION
FINANCIALLY SINCE REFINANCING HEAVY DEBT IN RECENT MONTHS THE COMMERCE
DEPARTMENT HAS PREDICTED CONTINUED GROWTH IN CABLE INDUSTRY REVENUE TO AN
ESTIMATED 288 BILLION THIS YEAR FROM 263 BILLION LAST YEAR AND CABLE
STOCK VALUES HAVE RISEN OVER THE PAST YEAR

THIS IS NOT AN INDUSTRY THAT'S GOING TO GO OUT OF BUSINESS BECAUSE THEY NOW
HAVE TO CHARGE COMPETITIVE RATES SAID BRADLEY STILLMAN LEGISLATIVE
COUNSEL OF THE CONSUMER FEDERATION OF AMERICA THIS IS REFORMING SOME SEVEN
YEARS OF ANTICOMPETITIVE PRICE ABUSE

ANALYSTS TOOK A CAUTIOUS VIEW OF THE NEW RATE CUTS THE BIGGER CABLE
COMPANIES WILL SURVIVE THIS BUT MAY LOSE SOME CASHFLOW GROWTH SAID ALVIN
MIRMAN AN ANALYST WITH GRUNTAL & CO OTHER ANALYSTS PREDICTED THAT THE FCC
ACTION WOULD LIKELY ACCELERATE CONSOLIDATION IN THE CABLE INDUSTRY AS
SMALLER CABLE OPERATORS CASH OUT OF THE BUSINESS SELLING TO BETTERHEELED
PLAYERS

THE FCC'S DECISION GENERALLY PLAYED WELL IN CONGRESS WHICH VOTED
OVERWHELMINGLY FOR THE 1992 LAW AND WAS BURNED WHEN LAST YEAR'S RULES DIDN'T
WORK AS EXPECTED DEMOCRATIC SEN ERNEST HOLLINGS OF SOUTH CAROLINA
CHAIRMAN OF THE COMMERCE COMMITTEE PRAISED THE FCC ACTION BUT ADDED THAT HE
WOULD BE WATCHING TO SEE JUST HOW THIS WORKS OUT SOME OF THE CABLE
INDUSTRY'S SUPPORTERS WERE INCENSED HOWEVER REPUBLICAN SEN CONRAD BURNS
OF MONTANA SAID THE FCC CLEARLY HAS GONE BEYOND WHAT CONGRESS INTENDED

THE NEW RULES REQUIRE CABLE SYSTEMS THAT FACE NO COMPETITION TO CUT BASIC
RATES 17 FROM THEIR SEPTEMBER 1992 LEVEL OR TO THE BENCHMARK PRICE
WHICHEVER IS LESS THE AGENCY SAID IT WOULD STUDY COST DATA BEFORE REQUIRING
FURTHER CUTS FROM CERTAIN CABLE SYSTEMS THOSE SYSTEMS INCLUDE THOSE THAT
WILL HAVE TO CUT RATES LESS THAN 17 TO REACH THE BENCHMARK THOSE WHOSE
PRICES ALREADY FALL BELOW THE NEW BENCHMARK AND CABLE SYSTEMS WITH 15000
OR FEWER SUBSCRIBERS

THIS IS STRONG MEDICINE FOR THE CABLE INDUSTRY BUT IT ISN'T POISON SAID
NICHOLAS ALLARD A FORMER LAW PARTNER OF MR HUNDT WHO HAS CLOSELY FOLLOWED
CABLE ISSUES SOME BIG WINNERS IN ADDITION TO CONSUMERS ARE COMPETITORS
ADDED MR ALLARD WHO HAS REPRESENTED COMPANIES THAT OFFER CABLETV FARE VIA
MICROWAVE SYSTEMS THE DECISIONS GIVE SATELLITE AND MICROWAVE COMPETITORS
INCENTIVES TO OFFER SMALLER AND LOWERPRICED PACKAGES HE SAID

THE FCC HAS A MAJOR JOB AHEAD EXPLAINING ITS NEW RULES TO CONSUMERS CABLE
OPERATORS AND LOCAL AND STATE GOVERNMENTS TO DO THAT IT HAS SCHEDULED
SEMINARS AROUND THE COUNTRY OVER THE NEXT FEW WEEKS AND HAS SET UP
INFORMATION LINES TO ASSIST CALLERS IN OBTAINING AND COMPLETING A VARIETY OF
FORMS REQUIRED UNDER THE NEW RULES

THOUGH THE RULES PARE RATES THEY GIVE CABLE COMPANIES A WAY TO MAKE MORE
MONEY BY ADDING NEW CHANNELS AND SERVICES OVER TIME WE'RE GOING TO SEE
NEW SERVICES AND COSTS WILL RISE NO DOUBT ABOUT IT SAID SANDY WILSON
ACTING HEAD OF THE FCC'S CABLE DIVISION BUT THE POINT SHE EMPHASIZED IS
TO OFFER CONSUMERS MORE CHOICES AND NEW TYPES OF SERVICES

THE NEW RULES REQUIRED BY THE 1992 CABLE ACT ARE EXPECTED TO GO INTO
EFFECT IN MIDMAY THE 1992 LAW LETS COMMUNITIES REGULATE RATES FOR THE
BASIC SERVICE PACKAGE WHICH INCLUDES LOCAL BROADCAST STATIONS IF THEY
FOLLOW THE FCC RULES THE FCC CAN REGULATE PACKAGES OF SERVICE THAT INCLUDE
SUCH CABLE PROGRAMMING AS DISCOVERY CHANNEL MTV CNN AND ESPN WHEN
CUSTOMERS FILE COMPLAINTS PREMIUM CHANNELS SUCH AS HBO AND SHOWTIME AND
PAYPERVIEW FARE ARE FREE OF REGULATION 9402230134 940223 GTECH GETS
TRINIDAD CONTRACT

WEST GREENWICH RI GTECH CORP GOT A CONTRACT TO SUPPLY OPERATE AND
MAINTAIN AN ONLINE LOTTERY SYSTEM FOR THE NATIONAL LOTTERIES CONTROL BOARD
OF TRINIDAD AND TOBAGO TERMS WEREN'T DISCLOSED

GTECH SAID THE FIVEYEAR CONTRACT HAS EXTENSIVE OPTIONS FOR AS MANY AS
FIVE ADDITIONAL YEARS

UNDER THE TERMS OF THE CONTRACT GTECH WILL PROVIDE A COMPREHENSIVE LOTTERY
SYSTEM INCLUDING A CENTRAL COMPUTER A COMMUNICATIONS NETWORK AND RETAILER
TERMINALS IT WILL PROVIDE TERMINAL INSTALLATION AND MAINTENANCE AND
EXTENSIVE MARKETING SUPPORT SUCH AS GAME DESIGN ADVERTISING AND PROMOTION
AND RETAILER SELECTION IN ADDITION GTECH WILL SUPPLY EQUIPMENT AND
SERVICES FOR ITS CLUB KENO LOTTERY GAME

THE COMPANY SAID THE LOTTERY BOARD EXPECTS TO BEGIN SELLING ONLINE GAMES BY
THIS SUMMER ABOUT 350 TERMINALS WILL BE INSTALLED INITIALLY WITH PLANS TO
EXPAND TO AS MANY AS 1000 TERMINALS 9402230133 940223 DIVIDEND NEWS 
AZTEC MANUFACTURING CO

AZTEC MANUFACTURING CO CROWLEY TEXAS DECLARED A SPECIAL ONETIME
DIVIDEND OF TWO CENTS A COMMON SHARE BUT SAID IT ISN'T RESUMING PAYMENT OF
QUARTERLY CASH DIVIDENDS THE DIVIDEND IS PAYABLE MARCH 28 TO STOCKHOLDERS
OF RECORD MARCH 11 THE ELECTRICALPRODUCTS MAKER LAST PAID A QUARTERLY
DIVIDEND APRIL 23 AN AZTEC SPOKESMAN SAID PAYMENTS WERE STOPPED BECAUSE
AZTEC WANTED TO USE THE CASH FOR FURTHER EXPANSIONS AND ACQUISITIONS THE
SPOKESMAN SAID THE ONETIME DIVIDEND IS BEING PAID BECAUSE THE COMPANY
WHICH PAID QUARTERLY DIVIDENDS FROM 1969 TO 1993 DIDN'T WANT TO BREAK ITS
STRING OF PAYMENTS COMPLETELY AZTEC HAS 56 MILLION SHARES OUTSTANDING THE
SPOKESMAN SAID 9402230132 940223 HOME OFFICE CHANGES ITS NAME

LENEXA KAN HOME OFFICE REFERENCE LABORATORY INC SAID ITS SHAREHOLDERS
VOTED TO CHANGE THE LABORATORYTESTING COMPANY'S NAME TO LABONE INC
9402230131 940223 WHO'S NEWS ALTEON INC

ALTEON INC NORTHVALE NJ JAMES J MAUZEY 45 YEARS OLD WAS NAMED
CHIEF EXECUTIVE SUCCEEDING CHARLES A FADEN 63 WHO RETIRED ALTEON A
BIOTECHNOLOGY COMPANY DEVELOPING PRODUCTS TO TREAT COMPLICATIONS FROM
DIABETES AND AGING SAID JERE GOYAN 63 WILL REMAIN PRESIDENT AND CHIEF
OPERATING OFFICER MR GOYAN HAD BEEN ACTING CHIEF EXECUTIVE SINCE MR FADEN
ANNOUNCED IN AUGUST THAT HE PLANNED TO RETIRE EFFECTIVE DEC 31 MR MAUZEY
WAS PRESIDENT FOR CORPORATE HOSPITAL ACCOUNTS AT BRISTOLMYERS SQUIBB CO OF
NEW YORK 9402230130 940223 COMMODITIES GOLD FUTURES FALL AFTER
GREENSPAN INDICATES FED IS LIKELY TO BOOST RATES TO FIGHT INFLATION 
 BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL

GOLD FUTURES PRICES FELL AFTER FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN
DESCRIBED GOLD AS A VERY GOOD INDICATOR OF INFLATION AND SAID THE FED IS
LIKELY TO CONTINUE TO BOOST SHORTTERM INTEREST RATES TO COMBAT INFLATION
WHEN IT OCCURS

AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN 240 TO
37920 AN OUNCE WHILE THE MAY SILVER FUTURES CONTRACT PRICE ROSE 38 CENTS
TO 5252 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE MEANWHILE PLATINUM
FOR APRIL DELIVERY FELL 340 TO 39710 AN OUNCE

ANALYSTS AND TRADERS SAID MR GREENSPAN'S COMMENTS UNNERVED PRECIOUSMETALS
MARKETS BECAUSE TIGHTENING OF INTEREST RATES IS PERCEIVED AS SOMETHING THAT
COULD DIMINISH INDUSTRIAL DEMAND FOR GOLD

GOLD DOESN'T CAUSE INFLATION SAID WILLIAM O'NEILL CHIEF FUTURES
STRATEGIST FOR MERRILL LYNCH IT MAY BE AN INDICATOR A REFLECTION OF
INFLATION PERCEPTIONS BUT COMMENTS FROM THE FED HISTORICALLY HAVE MADE THE
MARKET NERVOUS AND CAUSED SOME WEAKNESS THE THINKING IS THAT IF GOLD STARTS
TO MOVE UP THAT COULD INCREASE THE POTENTIAL FOR A FED TIGHTENING AND
POSSIBLY LEAD TO CENTRAL BANK SELLING

MANY TRADERS ASSERT THAT GOLD'S RECENT BEHAVIOR HAS LITTLE TO DO WITH
PROSPECTS FOR A PICKUP IN INFLATION AND THUS ARGUE THAT LINKING
INTERESTRATE BOOSTS TO THE PERFORMANCE OF GOLD IS INHERENTLY FLAWED

MOST OF US IN THE MARKET DON'T SEE GOLD'S RECENT RALLY AS AN INFLATION
RALLY BUT AS A FUNDAMENTAL RALLY SAID IAN MACDONALD CHIEF OF PRECIOUS
METALS TRADING FOR CREDITSUISSE SUPPLY AND DEMAND AND NOT INFLATION
CONCERNS HAVE BEEN DRIVING THE MARKET WHAT IF THERE ARE MINE INTERRUPTIONS
IN SOUTH AFRICA AND THE PRICE OF GOLD GOES UP IS THAT INFLATION OR IS HE
MR GREENSPAN JUST USING GOLD AS AN EXCUSE TO RAISE INTEREST RATES

YESTERDAY'S GOLD MARKET WAS ALSO PRESSURED LOWER BY OTHER FACTORS INCLUDING
A REPORT THAT RUSSIA'S INTERNAL BUDGETARY PROBLEMS ARE WORSE THAN EXPECTED
AND THAT THE COUNTRY MAY HAVE TO SELL GOLD TO MAKE ENDS MEET RUSSIAN
CENTRAL BANK CHIEF VIKTOR GERASHCHENKO SAID RUSSIA MAY BE COMPELLED TO
SELL GOLD TO CLOSE A BUDGET GAP NOW ESTIMATED AT 40 BILLION TO 45 BILLION

IN RECENT YEARS HEAVY SALES OF PRECIOUS METALS SUCH AS PLATINUM AND GOLD BY
RUSSIA HAVE BEEN A CONSISTENT DRAG ON PRICES ANALYSTS SAY IT HAD BEEN
HOPED THAT THESE SALES WOULD TAPER OFF THIS YEAR

A FINAL PIECE OF NEGATIVE NEWS FOR PRECIOUSMETALS MARKETS WAS THE WORLD
GOLD COUNCIL'S REPORT THAT ASIAN DEMAND FOR GOLD FELL SHARPLY LAST YEAR 
INCLUDING A 27 DROP IN THE FOURTH QUARTER FROM A YEAR EARLIER A 23 DROP
IN THE THIRD QUARTER AND AN 8 DECLINE DURING 1993 OVERALL

CHINA'S PURCHASES OF GOLD IN THE FOURTH QUARTER OF 1993 WERE ONLY ABOUT 46
METRIC TONS THE COUNCIL SAID DOWN 46 FROM THE PREVIOUS YEAR'S PURCHASES

THE GLOOMY NEWS ABOUT ASIAN DEMAND FOR GOLD OVERSHADOWED A BRIGHTER PORTRAIT
OF GLOBAL GOLD DEMAND WHICH SHOWED THAT OVERALL WORLD DEMAND FELL BY ONLY
ABOUT 1 LAST YEAR TO 2459 METRIC TONS DESPITE A 20 SURGE IN PRICE A
METRIC TON IS EQUIVALENT TO 220462 POUNDS

IN OTHER COMMODITY MARKETS YESTERDAY

ENERGY OIL FUTURES PRICES ROSE YESTERDAY IN LIGHT TRADING PROMPTED HIGHER
BY A RALLY IN THE HEATING OIL MARKET THE MAIN FOCUS OF THE MARKET WAS
STRONG PURCHASING OF HEATING OIL FOR MARCH DELIVERY THE MARCH HEATING OIL
CONTRACT SETTLED MORE THAN ONE CENT HIGHER TO 4683 CENTS A GALLON HEATING
OIL HAS BEEN HAVING SOMETHING OF A CORRECTIVE BOUNCE OVER THE LAST FEW
SESSIONS AFTER HEAVY LOSSES EARLY LAST WEEK SAID JOHN SAUCER ENERGY
ANALYST WITH SMITH BARNEY SHEARSON MR SAUCER AND OTHER ANALYSTS ALSO NOTED
THAT HEATING OIL BENEFITED FROM FORECASTS OF COLDER WEATHER FOR THE US
MIDWEST AND NORTHEAST IN COMING DAYS THE NORTHEAST IS THE WORLD'S LARGEST
HEATING OIL MARKET WINTER ISN'T OVER YET WARNED TOM BENTZ DIRECTOR OF
THE ENERGY DIVISION AT QUANTUM FINANCIAL SERVICES

GRAINS AND SOYBEANS FUTURES PRICES FELL AFTER WINTER WHEAT GROWERS IN THE
PLAINS STATES RECEIVED MUCHNEEDED PRECIPITATION AT THE CHICAGO BOARD OF
TRADE WHEAT FOR JULY DELIVERY FELL 325 CENTS TO 340 A BUSHEL FIELDS ARE
PARCHED IN MANY AREAS OF THE WESTERN CORN BELT AND PLAINS STATES RAISING
CONCERNS ABOUT LOWERTHANEXPECTED PRODUCTION OF SOFT AND HARD RED WINTER
WHEAT OVER THE PAST WEEKEND HOWEVER THE MOISTURE RECEIVED WAS MORE THAN
EXPECTED AND DEEMED BENEFICIAL SAID DANIEL W BASSE MARKET RESEARCH
DIRECTOR FOR AGRESOURCE CO CHICAGO THEY GOT AN INCH TO AN
INCHANDAHALF ALL BUT ALLEVIATING DRYNESS CONCERNS FOR WINTER WHEAT

NEIL BEHRMANN CONTRIBUTED TO THIS ARTICLE 9402230129 940223 HOME SELLERS
MUST REVIEW THE ROLLOVER' RULE  BY DEBORAH LOHSE

IF YOU SOLD A HOME LAST YEAR GETTING READY FOR APRIL 15 DOESN'T HAVE TO BE
A NIGHTMARE ON TAX STREET IF YOU PAY CAREFUL ATTENTION TO THE COMPLEX
RULES GOVERNING SALES OF PERSONAL RESIDENCES

UNLIKE SALES OF OTHER PROPERTY THE SALE OF YOUR MAIN HOME DOESN'T
AUTOMATICALLY MEAN A BIG TAX BILL ON ANY PROFITS YOU CAN POSTPONE THE TAX
ON THE PROFIT AS LONG AS YOU BUY A REPLACEMENT THAT COSTS AT LEAST AS MUCH
AS THE ONE YOU SOLD

TAXPAYERS GENERALLY CAN ROLL OVER THEIR PROFITS FROM A SALE INTO A NEW
HOME THEY BOUGHT EITHER TWO YEARS BEFORE OR TWO YEARS AFTER THE SALE
HOMEOWNERS KEEP TRACK OF THEIR POSTPONED PROFITS ON FORM 2119 WHICH THEY
MUST FILE WITH THE INTERNAL REVENUE SERVICE

BUT WHILE SEEMINGLY STRAIGHTFORWARD THIS IS A PARTICULARLY CONFUSING AREA
OF LAW FOR MANY PEOPLE SAYS JULIAN BLOCK A TAX LAWYER IN LARCHMONT NY
TAXPAYERS WHO SOLD A HOME BUT HAVEN'T REPLACED IT YET WHO DIDN'T MAKE A
PROFIT ON THE SALE OR WHO PLAN TO BUY A LESS EXPENSIVE HOME HAVE SPECIAL
CONSIDERATIONS IN ORDER TO KEEP THEIR CURRENT OR FUTURE TAX BILLS TO A
MINIMUM TAX PROFESSIONALS SAY

ALTHOUGH PEOPLE TYPICALLY ROLL OVER SUCH CAPITAL GAINS UNTAXED FROM HOUSE TO
HOUSE CHANCES ARE SOMEDAY YOU WILL OWE TAXES ON THE DEFERRED SUM IT'S
IMPORTANT TO MINIMIZE THE PROFIT YOU REPORT TO THE IRS FOR EACH SALE

TO DO THIS YOU CAN ADD THE COST OF SIGNIFICANT HOME IMPROVEMENTS OVER THE
YEARS SUCH AS A NEW ROOF OR REMODELING IN FIGURING THE ADJUSTED BASIS
WHICH YOU WILL SUBTRACT FROM THE SALE PRICE TO DETERMINE YOUR CAPITAL GAIN
ALSO YOU CAN SUBTRACT SOME SELLING COSTS SUCH AS COMMISSIONS ADVERTISING
AND LEGAL FEES IN FIGURING THE PROFIT YOU REPORT

ONE TIP MANY TAXPAYERS WHO MOVED IN 1993 WILL HAVE A CHOICE BETWEEN
DEDUCTING COSTS LIKE LEGAL FEES OR A REALESTATE AGENT'S COMMISSIONS AS A
MOVING EXPENSE OR SUBTRACTING THEM FROM THE ROLLEDOVER CAPITAL GAINS YOU
SHOULD GENERALLY TAKE THE MOVING DEDUCTION TAX ADVISERS SAY

IF YOU DEDUCT THEM AS MOVING EXPENSES YOU CAN TAKE THE TAX BENEFIT RIGHT
AWAY SAYS SYLVIA POZARNSKY DIRECTOR OF ERNST & YOUNG'S PERSONAL FINANCIAL
COUNSELING GROUP IN CHICAGO THE 1993 TAX ACT TOOK AWAY TAXPAYER'S ABILITY
TO CLAIM HOMESELLING COSTS AS A MOVING DEDUCTION AFTER 1993

OTHER TAXPAYERS MIGHT HAVE SOLD A HOME FOR LESS THAN THEY PAID FOR IT AND
THINK THEY HAVE A DEDUCTIBLE LOSS THEY ARE PROBABLY WRONG FOR TWO REASONS
SUCH LOSSES ARE ALMOST NEVER DEDUCTIBLE AND IF A TAXPAYER HAS PREVIOUSLY
ROLLED OVER UNTAXED PROFIT FROM A HOME INTO THE ONE THEY SOLD IN 1993 WHAT
FEELS LIKE A LOSS MIGHT ACTUALLY BE A GAIN

SAY 10 YEARS AGO YOU SOLD A HOME FOR A 50000 PROFIT DEFERRING TAXES ON
THAT AMOUNT BY BUYING A NEW 150000 HOME IN 1993 YOU SELL THE SECOND HOME
FOR 125000 FOR A 25000 LOSS IF YOU REPLACE THE LAST HOME WITHIN TWO
YEARS YOU WILL ROLL OVER 25000 OF GAIN RATHER THAN 50000

THOSE WHO TRADE DOWN BY BUYING A NEW HOME THAT COSTS LESS THAN THE PRICE
OF THEIR OLD HOME FACE A TAX ON THE PRICE DIFFERENCE

SOME TAXPAYERS MAY ELECT ON FORM 2119 TO EXCLUDE UP TO 125000 OF HOMESALE
PROFITS YOU MUST BE 55 OR OLDER TO DO SO AND YOU SHOULD BE AWARE THAT ONCE
YOU USE IT IT'S GONE BE SURE WHEN YOU USE THE EXCLUSION THAT THAT'S GOING
TO BE THE BIGGEST GAIN YOU ARE GOING TO HAVE IN YOUR LIFETIME SAYS PAT
MULLIN A TAX PARTNER WITH DELOITTE & TOUCHE IN CLEVELAND 9402230128
940223 WHO'S NEWS FORSCHNER GROUP INC

FORSCHNER GROUP INC SHELTON CONN JAMES W KENNEDY AND LEO M HART
WERE NAMED TO SHARE THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
THIS MARKETER OF SWISS ARMY KNIVES MR KENNEDY 43 YEARS OLD HAD BEEN
PRESIDENT AND CHIEF EXECUTIVE OFFICER WHILE MR HART 44 WAS EXECUTIVE
VICE PRESIDENT THEY REPLACE AS CHAIRWOMAN KAREN BRENNER MS BRENNER IS
MANAGING DIRECTOR OF NOEL GROUP A HOLDING COMPANY WITH TIES TO LOUIS MARX
JR A MAJOR FORSCHNER INVESTOR AND CHAIRMAN OF FORSCHNER'S EXECUTIVE
COMMITTEE MS BRENNER WHO PRESIDED OVER FORSCHNER'S RESTRUCTURING WILL
CONTINUE AS A CONSULTANT TO THE COMPANY 9402230127 940223 WHO'S NEWS 
TITAN CORP

TITAN CORP SAN DIEGO DAVID M HOLLAND 57 YEARS OLD WAS ELECTED A
DIRECTOR OF THIS SUPPLIER OF HIGHTECHNOLOGY INFORMATION AND ELECTRONICS
PRODUCTS AND SYSTEMS INCREASING THE BOARD TO EIGHT HE RECENTLY RETIRED AS
SENIOR VICE PRESIDENT OF DSC COMMUNICATIONS CORP 9402230126 940223
DEMOCRATS CONSIDER HYBRID HEALTH PLAN THAT EXEMPTS SMALL FIRMS FROM PAYING
  BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON DEMOCRATS IN CONGRESS ARE SERIOUSLY CONSIDERING A COMPROMISE
PLAN THAT WOULD EXEMPT SMALL BUSINESSES FROM THE CLINTON ADMINISTRATION'S
PROPOSED REQUIREMENT THAT EMPLOYERS HELP PAY FOR THEIR WORKERS' HEALTH
INSURANCE

FOR SMALL BUSINESSES THE IDEA INSTEAD WOULD BE TO PUT THE BURDEN OF
SECURING COVERAGE ON EMPLOYEES AN APPROACH FAVORED BY MODERATE REPUBLICANS

OFFICIALS IN CONGRESS AND THE CLINTON ADMINISTRATION ARE RELUCTANT TO
EMBRACE THE HYBRID SCHEME PUBLICLY BUT THE IDEA HAS WON INCREASED ATTENTION
AS HOUSE AND SENATE COMMITTEE CHAIRMEN SEEK TO FIND VOTES TO ACHIEVE THE
PRESIDENT'S GOAL OF UNIVERSAL HEALTH COVERAGE

SMALLBUSINESS OPPOSITION TO THE SOCALLED EMPLOYER MANDATE IS A MAJOR WORRY
FOR CONSERVATIVE AND MODERATE DEMOCRATS WHOSE SUPPORT IS CRUCIAL TO THE
PARTY LEADERSHIP IN THE HOUSE MOREOVER BY MOVING TOWARD THE INDIVIDUAL
MANDATE APPROACH FAVORED BY MANY SENATE REPUBLICANS THE ALTERNATIVE COULD
FORTIFY RELATIONS WITH GOP MODERATES WHO ARE UNDER PRESSURE FROM THE
POLITICAL RIGHT TO RESIST ANY COMPROMISE

AS CONGRESS RETURNED FROM ITS FEBRUARY RECESS MR CLINTON HOSTED A WHITE
HOUSE DINNER LAST NIGHT WITH SENIOR REPUBLICAN AND DEMOCRATIC SENATORS IN
THE HEALTHCARE DEBATE SENATE MINORITY LEADER ROBERT DOLE BROUGHT WITH HIM
A MIX OF MODERATES AND CONSERVATIVES INCLUDING SENS BOB PACKWOOD OF
OREGON AND JOHN CHAFEE OF RHODE ISLAND BOTH MEMBERS OF THE SENATE FINANCE
COMMITTEE AND IMPORTANT SWING VOTES

MR CHAFEE THE LEADER OF THE REPUBLICAN HEALTH TASK FORCE IN THE SENATE IS
ONE OF THE MOST PROMINENT ADVOCATES OF AN INDIVIDUAL MANDATE CRITICS SAY
HIS PLAN WITHOUT SOME GUARANTEED EMPLOYER CONTRIBUTION WOULD LACK THE
RESOURCES TO FULLY SUBSIDIZE WORKINGCLASS FAMILIES AND MAKE HEALTH
INSURANCE TRULY AFFORDABLE

THE CLINTON PLAN WHICH WOULD REQUIRE ALL EMPLOYERS TO PAY 80 OF THE COST
OF THEIR WORKERS' BASIC HEALTHINSURANCE COSTS HAS BEEN CRITICIZED FOR
IMPOSING TOO GREAT A BURDEN ON SMALL BUSINESS WHILE IT WOULD PROVIDE
SUBSIDIES TO HARDPRESSED EMPLOYERS OPPONENTS ARGUE THAT THE COSTS ARE
HUGE AND THAT AID WOULD BE MORE EFFECTIVE IF GIVEN DIRECTLY TO INDIVIDUALS
IN THE FORM OF SUBSIDIES OR TAX CREDITS

THE HYBRIDTYPE APPROACH BEING DISCUSSED BY DEMOCRATS APPEARS AKIN TO AN
ALTERNATIVE PUT FORWARD IN DECEMBER BY MICHAEL MOORE A HEALTHPOLICY
ANALYST AT THE JACKSON HOLE GROUP A WYOMINGBASED THINK TANK UNDER DR
MOORE'S APPROACH COMPANIES WITH MORE THAN 100 WORKERS WOULD BE SUBJECT TO
AN EMPLOYER MANDATE ALBEIT A MILDER ONE THAN PROPOSED BY THE PRESIDENT
BUSINESSES WITH 100 OR FEWER WORKERS WOULD BE EXEMPT THOSE COMPANIES'
WORKERS WOULD BE REQUIRED TO BUY THEIR OWN HEALTH INSURANCE AND WOULD
QUALIFY FOR TAX CREDITS TO REDUCE THE COST

IT WOULD BE DIFFICULT FOR REPUBLICANS TO MAKE ANY CONCESSION ON THE EMPLOYER
MANDATE I'VE TRIED HARD TO NEVER SAY NEVER SAID MR CHAFEE LAST NIGHT
IT'S TOO EARLY TO GET INTO ANY COMPROMISES HE SAID THE HYBRID PLAN WOULD
NOT FLY AT THIS TIME

STILL THE DISCUSSIONS REFLECT A RECOGNITION AMONG DEMOCRATS THAT MAJOR
ELEMENTS OF THE PRESIDENT'S PLAN FACE DIFFICULTY THE PRESIDENT'S ALLIES ARE
BEGINNING TO LOOK FOR ALTERNATIVE APPROACHES TO BLUNT THE OPPOSITION REP
HENRY WAXMAN D CALIF CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE HEALTH
SUBCOMMITTEE WAS UNCERTAIN LAST NIGHT IF HE WOULD BEGIN DRAFTING A BILL AS
SCHEDULED NEXT WEEK NONE OF THE RIVAL CAMPS APPEARS TO HAVE A WORKING
MAJORITY IN THE PANEL

EVEN ON PANELS WHERE LIBERAL DEMOCRATS ARE IN CLEAR CONTROL THE OUTCOME
MIGHTN'T BE TO THE ADMINISTRATION'S LIKING THE HOUSE WAYS AND MEANS HEALTH
SUBCOMMITTEE WHICH IS SCHEDULED TO BEGIN DRAFTING ITS VERSION OF A
HEALTHREFORM BILL TUESDAY IS CONSIDERING SUCH MEASURES AS A PAYROLL TAX
AND A GOVERNMENT RATESETTING SYSTEM REP PETE STARK D CALIF THE
SUBCOMMITTEE CHAIRMAN IS PUSHING A MEDICARE FOR ALL SETUP WHICH WOULD
EXTEND TO ALL CITIZENS THE HEALTH COVERAGE THE GOVERNMENT NOW PROVIDES THE
ELDERLY MR STARK HAS BEEN HOLDING MEETINGS WITH THE DEMOCRATIC MEMBERS OF
HIS PANEL IN HOPES OF FORGING A CONSENSUS ON THE MAJOR ISSUES

FROM THE OUTSET DEMOCRATS HAVE IDENTIFIED THE EMPLOYER MANDATE AS THE MOST
DIFFICULT AND IMPORTANT TEST FOR THE PRESIDENT'S PLAN OTHER
PROVISIONS CAN BE EASILY SHED TO WIN VOTES BUT WITHOUT SOME TYPE OF
MANDATE PROPONENTS QUESTION IF THE ADMINISTRATION CAN EVER ACHIEVE ITS
PROMISE OF UNIVERSAL COVERAGE

FEAR OF BEING ATTACKED FOR RAISING TAXES IS A MAJOR REASON WHY THE PRESIDENT
PROPOSED SUCH A LARGE 80 MANDATE ON EMPLOYERS ONE ALTERNATIVE SOURCE OF
FINANCING EMBRACED BY SEN CHAFEE WOULD BE TO LIMIT THE CURRENT
INDIVIDUAL INCOMETAX EXCLUSION FOR HEALTH BENENFITS UNIONS HAVE LONG
RESISTED THAT PROPOSAL BECAUSE IT WOULD EXPOSE WORKERS TO ADDED TAXES UNLESS
THEY ACCEPT LOWERCOST HEALTH BENEFITS BUT THE ADDED TAX BURDEN WOULD BE
GREATEST FOR HIGHERINCOME HOUSEHOLDS WHO BENEFIT MOST FROM THE TAX BREAK
TODAY AND TAX ANALYSTS SAY THE PROVISION IS MORE PROGRESSIVE THAN AN
ALTERNATIVE TAX SCHEME INCORPORATED IN A RIVAL PLAN SPONSORED BY REP JIM
COOPER D TENN 9402230125 940223 MORGAN STANLEY'S PROFIT ROSE 28 
IN FOURTH PERIOD  BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK EARNINGS AT INVESTMENT BANKER MORGAN STANLEY GROUP INC ROSE 28
IN THE FISCAL FOURTH QUARTER BUT THAT INCREASE COMING AMID A WALL STREET
BOOM SUBSTANTIALLY LAGGED THE INDUSTRY

THE CULPRIT AT MORGAN WAS NEARLY FLAT INVESTMENTBANKING REVENUE THE
COMPANY'S FOURTHQUARTER REVENUE FROM STOCK AND BOND UNDERWRITING AND
MERGERS ADVISING WAS 245 MILLION 8 ABOVE THE 2279 MILLION OF A YEAR
EARLIER IN CONTRAST MERRILL LYNCH & CO SHOWED A 45 GAIN IN
INVESTMENTBANKING REVENUE FROM THE YEAREARLIER QUARTER

LAST JUNE MORGAN LOST MERGERS ACE ROBERT GREENHILL WHO LEFT TO BECOME
CHAIRMAN OF SMITH BARNEY SHEARSON INC THE BROKERAGE UNIT OF TRAVELERS INC
MR GREENHILL LATER SERVED AS ADVISER TO VIACOM INC ON ITS TAKEOVERS OF
PARAMOUNT COMMUNICATIONS INC AND BLOCKBUSTER ENTERTAINMENT CORP DEALS
THAT REPORTEDLY RESULTED IN MORE THAN 25 MILLION IN FEES FOR SMITH BARNEY

MORGAN'S INVESTMENTBANKING REVENUE SLID LOWER EVERY QUARTER IN THE FISCAL
YEAR ENDED JAN 31 FIRSTQUARTER INVESTMENTBANKING REVENUE WAS 3788
MILLION FALLING TO 3182 MILLION IN THE SECOND QUARTER AND TO 2956
MILLION IN THE THIRD QUARTER

OVERALL MORGAN'S NET INCOME FOR THE FOURTH QUARTER WAS 1812 MILLION OR
218 A SHARE UP FROM 1418 MILLION OR 168 A SHARE A YEAR EARLIER

PERSHARE EARNINGS CAME IN SLIGHTLY BELOW ANALYSTS' EXPECTATIONS OF 223 A
SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC

IN CONTRAST FOURTHQUARTER NET INCOME AT INDUSTRY LEADER MERRILL LYNCH ROSE
57 FROM THE YEAREARLIER PERIOD AND 37 AT PAINEWEBBER GROUP INC HOWEVER
THEIR QUARTERS ENDED A MONTH EARLIER ON DEC

MORGAN BOOSTED ITS QUARTERLY DIVIDEND 11 TO 30 CENTS A SHARE FROM 27 CENTS
A SHARE PAYABLE MARCH 24 TO STOCK OF RECORD MARCH 4 THE COMPANY ALSO
ANNOUNCED A 150 MILLION STOCK BUYBACK PROGRAM WHICH BOOSTS ITS TOTAL
BUYBACK AUTHORITY TO 2529 MILLION

FOR THE YEAR MORGAN'S NET INCOME ROSE 54 TO 7861 MILLION OR 959 A
SHARE FROM 5105 MILLION OR 590 A SHARE A YEAR EARLIER

FOURTHQUARTER REVENUE ROSE 16 TO 208 BILLION FROM 180 BILLION A YEAR
EARLIER FOR THE YEAR REVENUE ROSE 24 TO 918 BILLION FROM 738 BILLION
IN THE PRIOR YEAR

MORGAN'S STOCK SLIPPED ON THE EARNINGS NEWS CLOSING AT 70 A SHARE DOWN 50
CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY

A SPOKESWOMAN FOR MORGAN STANLEY SAID THAT THE PACE OF UNDERWRITING SLOWED
IN JANUARY FROM DECEMBER AND THAT MORGAN'S RESULTS ARE THE FIRST TO REFLECT
THE INDUSTRYWIDE DECLINE 9402230124 940223 WHO'S NEWS ASK SELECTS
PRESIDENT CEO AND CHAIRMAN

SANTA CLARA CALIF ASK GROUP INC SAID IT NAMED ERIC CARLSON PRESIDENT
AND CHIEF EXECUTIVE OFFICER PART OF A SERIES OF MANAGEMENT CHANGES AT THE
SOFTWARE CONCERN

MR CARLSON 49 YEARS OLD WAS AN EXECUTIVE VICE PRESIDENT OF ASK HE
SUCCEEDS PIER CARLO FALOTTI WHO LEFT THE SOFTWARE CONCERN UNEXPECTEDLY THIS
MONTH CITING PERSONAL REASONS

IN ADDITION ASK SAID PAUL C ELY JR A 62YEAROLD PARTNER WITH
VENTURECAPITAL FIRM ALPHA PARTNERS WILL BECOME CHAIRMAN MR ELY A
DIRECTOR SINCE 1989 SUCCEEDS SANDY KURTZIG WHO RESIGNED IN SEPTEMBER
ROBERT H WATERMAN JR HEAD OF THE WATERMAN GROUP INC WAS NAMED VICE
CHAIRMAN

ASK HURT BY SLUMPING SALES HAD A NET LOSS OF 137 MILLION OR 59 CENTS A
SHARE IN ITS FISCAL SECOND QUARTER ENDED DEC 31 IN NASDAQ STOCK MARKET
TRADING ASK SHARES CLOSED UP 625 CENTS OR 76 AT 8875 9402230123
940223 CREDIT RATINGS

USF&G CORP STANDARD & POOR'S CORP SAID IT WAS RAISING SOME CREDIT
RATINGS OF USF&G AND ITS INSURANCE COMPANIES PROMPTED BY CONTINUING
IMPROVEMENTS IN THE PROPERTY AND CASUALTY UNIT S&P RAISED THE RATING ON THE
HOLDING COMPANY'S SENIOR DEBT TO TRIPLEBMINUS FROM DOUBLEBPLUS S&P
DIDN'T SAY HOW MUCH DEBT WAS AFFECTED BY THE CHANGES S&P EXPECTS THAT A
RECAPITALIZATION PLAN CONTEMPLATED BY MANAGEMENT WILL REDUCE THE COMPANY'S
LEVERAGE SIGNIFICANTLY ENABLING GREATER RETENTION OF EARNINGS CAPITAL
FORMATION AND LIQUIDITY 9402230122 940223 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

AUTOFINANCE GROUP INC AN OFFERING OF TWO MILLION COMMON SHARES WITH AN
OVERALLOTMENT OPTION OF 300000 SHARES VIA CS FIRST BOSTON INVERNED
ASSOCIATES INC AND WILLIAM BLAIR & CO

DF&R RESTAURANTS AN OFFERING OF ONE MILLION COMMON SHARES VIA DEAN WITTER
REYNOLDS INC AND RAYMOND JAMES & ASSOCIATES INC

DIALOGIC CORP AN INITIAL OFFERING OF 3750000 COMMON SHARES VIA
HAMBRECHT & QUIST INC AND ROBERTSON STEPHENS & CO

LACROSSE FOOTWEAR INC AN INITIAL OFFERING OF 15 MILLION COMMON SHARES
VIA ROBERT W BAIRD & CO AND PIPER JAFFRAY INC

SPORTHALEY INC AN INITIAL OFFERING OF 700000 SHARES AT 5 A SHARE AND AN
OFFERING OF 30MONTH STOCK PURCHASE WARRANTS AT 10 CENTS EACH WITH AN
OPTION TO PURCHASE AN ADDITIONAL SHARE AT 650 VIA SCHNEIDER SECURITIES
INC

SOVEREIGN BANCORP INC A SHELF OFFERING OF UP TO 150 MILLION OF COMMON
STOCK AND COMMON STOCK WARRANTS DEBT SECURITIES AND WARRANTS TO PURCHASE
DEBT SECURITIES AND PREFERRED STOCK AND WARRANTS

THERMOTREX CORP AN OFFERING OF 14 MILLION COMMON SHARES WITH A 30DAY
OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 210000 SHARES VIA NATWEST
SECURITIES LTD AND LEHMAN BROTHERS INC 9402230121 940223 MUTUAL FUNDS 
EMERGINGMARKETS GURU SEES DANGEROUS PERIOD IN SHORT TERM  BY SARA
CALIAN AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL

NEW YORK WAKE UP ALL YOU PEOPLE STAMPEDING INTO EMERGINGMARKETS STOCK
FUNDS

DON'T EXPECT THIS CRAZY WILD 70 TO CONTINUE SAYS J MARK MOBIUS WHO
RUNS SEVERAL OF FRANKLIN RESOURCES INC'S TEMPLETON MUTUAL FUNDS AND IS
WIDELY REGARDED AS AN EMERGINGMARKETS GURU HIS BIGGEST PORTFOLIO IS
TEMPLETON DEVELOPING MARKETS TRUST UP 745 INCLUDING DIVIDENDS LAST YEAR
AND UP 23 SINCE THEN

WHEN YOU HAVE THESE BIG RUNUPS YOU ALSO GET  CORRECTIONS MR
MOBIUS WARNS THOSE CORRECTIONS DON'T OFTEN GO BACK TO THE SAME LEVEL BUT
THEY CAN BE VERY FIERCE

THOUGH HE WON'T PREDICT THE TIMING HE THINKS A DROP OF 20 TO 40 IN SOME
COUNTRIES' MARKETS IS QUITE POSSIBLE THIS YEAR SOME ASIAN MARKETS ALREADY
HAVE BEEN HIT HARD WE ARE ALREADY IN A HIGHLY DANGEROUS PERIOD HE SAYS
IN AN INTERVIEW ON A VISIT TO NEW YORK

IN ONE CAUTIONARY SIGN MR MOBIUS HOLDS A 30 CASH POSITION IN THE 14
BILLION TEMPLETON DEVELOPING MARKETS TRUST MUTUAL FUNDS USUALLY ARE
CONSIDERED FULLY INVESTED WHEN THEY HAVE 5 OF THEIR ASSETS IN CASH
INVESTORS ARE SHOVELING MONEY INTO MR MOBIUS'S FUND AND WE'RE NOT
INVESTING THAT IMMEDIATELY WE'RE BEING VERY CAREFUL IN VIEW THAT SO MANY
THINGS HAVE RUN UP IN PRICE HE SAYS

YOU SEE A LOT OF NEWCOMERS MANAGERS OF NEW FUNDS WITHOUT A LOT OF
EXPERIENCE RUSHING IN SAYS MR MOBIUS WHOSE FUNDS BELONG TO THE TEMPLETON
SUBSIDIARY OF FRANKLIN OF SAN FRANCISCO THE FLOOD OF MONEY IS PUSHING UP
PRICES OF STOCKS IN SOME EMERGING MARKETS TO RIDICULOUS LEVELS

TO BE SURE MR MOBIUS WHOSE OFFICES ARE IN HONG KONG IS EXTREMELY BULLISH
IN THE LONG TERM FOR EMERGING MARKETS THE STOCK MARKETS OF FASTGROWING
DEVELOPING NATIONS ALL THIS MONEY AND THE HOT RETURNS IN THE MARKET LAST
YEAR ARE WAKING THE WORLD UP TO THE TREMENDOUS POTENTIAL WE SEE IN
EMERGING MARKETS HE SAYS EDUCATION AND ADVANCES IN TECHNOLOGY ARE
ALLOWING WHOLE NATIONS TO LEAPFROG WHOLE STAGES OF ECONOMIC DEVELOPMENT
THROUGH WHICH THE US UNITED KINGDOM AND JAPAN HAD TO TRUDGE

AND MR MOBIUS'S CURRENT CAUTION ISN'T STOPPING TEMPLETON FROM BRINGING OUT
MORE FUNDS TO INVEST IN EMERGING MARKETS TEMPLETON FILED LAST WEEK TO BRING
OUT A CLOSED END FUND INVESTING IN BOTH STOCKS AND BONDS OF EMERGING
MARKETS ACCORDING TO MUTUAL FUND ADVANCE A UNIT OF DOW JONES & CO'S
FEDERAL FILINGS SUBSIDIARY CLOSEDEND FUNDS DIFFER FROM MUTUAL FUNDS IN
THAT THEIR SHARES ARE TRADED ON AN EXCHANGE TEMPLETON IS SEEKING NEW MONEY
FROM INVESTORS FOR EMERGINGMARKETS FUNDS IN THE UK AS WELL

ANOTHER SIGN OF EMERGINGMARKETS MANIA MORGAN STANLEY & CO FILED RECENTLY
FOR A CLOSEDEND FUND TO INVEST IN EUROPEAN EMERGING MARKETS SUCH AS EASTERN
EUROPE RUSSIA AND TURKEY

ALL TOLD MR MOBIUS AND THE TEMPLETON TEAM HE OVERSEES MANAGE 20ODD
PORTFOLIOS AND FUNDS INVESTING IN EMERGING MARKETS INCLUDING TWO MUTUAL
FUNDS AND TWO PUBLICLY TRADED CLOSEDEND FUNDS IN THE US HIS GROUP GETS
50 MILLION TO 100 MILLION A WEEK FROM INVESTORS THE TOTAL ASSETS HE
MANAGES HAS GROWN TO 5 BILLION FROM 3 BILLION IN A YEAR

MR MOBIUS HAS TRAVELED AROUND THE GLOBE TWICE IN THE FIRST TWO MONTHS THIS
YEAR SEARCHING FOR STOCKS TEMPLETON DEVELOPING MARKETS HOLDS SHARES OF
COMPANIES FROM 24 DIFFERENT COUNTRIES INCLUDING UNITED PLANTATIONS AFRICA
LTD A CITRUSFRUIT COMPANY OPERATING IN SWAZILAND

THE FUND IS CURRENTLY WEIGHTED ABOUT 19 IN HONG KONG AND ITS HOLDINGS IN
EMERGING MARKETS INCLUDE 11 IN BRAZIL 10 IN TURKEY AND 9 IN THE
PHILIPPINES THERE ARE ALSO SIGNIFICANT HOLDINGS FROM GREECE MEXICO AND
MALAYSIA THE STOCKS COME LARGELY FROM THE BANKING TELECOMMUNICATIONS AND
REALESTATE INDUSTRIES

HE IS STARTING TO BUY MORE STOCKS IN MALAYSIA AND THAILAND SAYING THE SHARP
DECLINES IN THESE MARKETS HAVE PROVIDED SOME OPPORTUNITIES BUT LATELY HE
HAS BEEN DOING MORE SELLING THAN BUYING IN HONG KONG AND IN EMERGING MARKETS
SUCH AS BRAZIL COLOMBIA SINGAPORE INDONESIA TAIWAN AND TO A LESSER
EXTENT MEXICO

MR MOBIUS PICKS A STOCK BY LOOKING AT A COMPANY'S PRICETOEARNINGS RATIO
HE CHECKS TO SEE IF THE STOCK IS CHEAP COMPARED WITH ITS HISTORY OF EARNINGS
GROWTH AND COMPARED WITH OTHER COMPANIES IN THE SAME MARKET AND INDUSTRY

MANY OTHER PEOPLE ARE HUNTING TOO DURING THE PAST SIX MONTHS 48 NEW FUNDS
TO INVEST IN EMERGING MARKETS HAVE FILED OFFERING FORMS WITH THE SECURITIES
AND EXCHANGE COMMISSION ACCORDING TO MUTUAL FUND ADVANCE EMERGING MARKETS
ALSO ARE BEING FUELED BY MONEY FROM BROADLY DIVERSIFIED INTERNATIONALSTOCK
FUNDS SHIFTING INTO THESE COUNTRIES

MR MOBIUS SAYS ALL OF THIS CASH ALSO IS PROPELLING A NUMBER OF NEW PUBLIC
COMPANIES HE SAYS AN OWNER OF A CLOSELY HELD VENEZUELAN COMPANY THAT
MANUFACTURES STATIONERY EQUIPMENT RECENTLY TOLD HIM THAT HE CAN'T BELIEVE
WHAT PEOPLE ARE WILLING TO PAY FOR HIS COMPANY MR MOBIUS SAYS THE
VENEZUELAN COMPANY WHOSE NAME HE WON'T REVEAL WOULD HAVE FETCHED ONLY 10
MILLION IN THE MARKET A FEW YEARS AGO BUT COULD PROBABLY GET 100 MILLION IN
A PUBLIC OFFERING TODAY

MR MOBIUS IS A LIVING LEGEND AMONG EMERGINGMARKETS INVESTORS IN 1987 HE
LAUNCHED THE TEMPLETON EMERGING MARKETS FUND WHICH TRADES ON THE NEW YORK
STOCK EXCHANGE FROM ITS INCEPTION THROUGH JAN 31 THIS YEAR EMERGING
MARKETS HAS HAD AN AVERAGE ANNUAL TOTAL RETURN OF 3114 ACCORDING TO
LIPPER ANALYTICAL SERVICES INC THAT FUND'S CURRENT STOCK PRICE OF 28 IS A
HEFTY 18 PREMIUM TO ITS NET ASSET VALUE A SHARE ON FRIDAY TEMPLETON
DEVELOPING MARKETS AN OPENEND FUND LEVIES A SALES CHARGE OF AS MUCH AS
575

MR MOBIUS WHO IS 57 YEARS OLD HAS SPENT HIS WORKING LIFE OVERSEAS IN
COLLEGE HE SIGNED UP TO SPEND HIS SENIOR YEAR IN JAPAN EVEN THOUGH I
WOULD HAVE HAD DIFFICULTY LOCATING JAPAN ON A MAP HE SAYS AFTER A YEAR
THERE THAT WAS IT FOR ME  I VOWED I WOULD RETURN

HE NEVER QUITE GOT BACK TO JAPAN AFTER A SUBSEQUENT PHD AT MASSACHUSETTS
INSTITUTE OF TECHNOLOGY IN THE ECONOMICS OF UNDERDEVELOPED NATIONS MR
MOBIUS WENT ON TO A SUCCESSION OF JOBS IN OTHER ASIAN COUNTRIES HE STUDIED
THE TENSIONS BETWEEN US TROOPS AND THE KOREAN AND THAI POPULATIONS HE
ALSO WORKED ON A SOYBEAN DRINK FOR MONSANTO IN HONG KONG THAT FAILED IN A
BEAUTIFUL EXAMPLE OF CULTURAL DIFFERENCES MONSANTO'S MIDWESTERN
TECHNICIANS DIDN'T WANT THE DRINK TO SMELL LIKE SOYBEANS BUT THE RESULTING
SWEETENED CONCOCTION TASTED HORRIBLE AND QUITE A FEW PEOPLE GOT SICK
DRINKING IT

THE LIFE OF AN EMERGINGMARKETS MUTUALFUND MANAGER IS A LOT ZIPPIER THAN
THAT OF A USFUND MANAGER MR MOBIUS WOKE AT THE MANDARIN HOTEL IN MANILA
IN 1989 TO THE SOUND OF GUNFIRE FROM AN ATTEMPTED COUP AGAINST PHILIPPINE
PRESIDENT CORAZON AQUINO HE GOT INTO A JEEP AND DROVE OUT TO WATCH
AIRPLANES BOMBING A NEARBY MILITARY BASE THEN WITH GUNFIRE STILL RINGING
HE WENT ON TO INTERVIEW PHILIPPINE COMPANIES AS PLANNED

DESPITE THE BOMBING THE GENERAL TREND OF EVENTS LOOKED GOOD HE SAYS WE
TAKE IT ALL IN STRIDE 9402230120 940223 LAW JUSTICES TO CLARIFY WHEN
STATES MUST GIVE REFUNDS ON TAXES LATER DEEMED ILLEGAL  BY PAUL M
BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE SUPREME COURT WILL CLARIFY WHEN STATES MUST PROVIDE
REFUNDS TO TAXPAYERS WHO HAVE PAID LEVIES THAT SUBSEQUENTLY ARE DECLARED
UNLAWFUL

THE JUSTICES AGREED TO HEAR AN APPEAL BY A FEDERAL RETIREE IN GEORGIA WHO
CLAIMED THAT THE STATE IMPROPERLY DENIED HIM A REFUND THE CASE IS THE
LATEST IN A SERIES OF HIGH COURT DISPUTES INVOLVING STATE TAXES ON FEDERAL
PENSIONS IT COULD AFFECT THOUSANDS OF FORMER FEDERAL EMPLOYEES LIVING IN 10
STATES ACCORDING TO THE GEORGIA MAN'S LAWYERS

THE HIGH COURT'S RULING WHICH ISN'T EXPECTED UNTIL THIS FALL AT THE
EARLIEST ALSO COULD HAVE IMPLICATIONS FOR CORPORATIONS THAT SUCCESSFULLY
CHALLENGE TAX LAWS

THE CASE STEMS FROM A 1989 SUPREME COURT RULING THAT STATES MAY NOT TAX
FEDERAL RETIREMENT BENEFITS IF THEY DON'T TAX COMPARABLE STATE AND LOCAL
BENEFITS TOO IN A FOLLOWUP DECISION LAST YEAR THE JUSTICES SAID THAT
STATES GENERALLY MUST PROVIDE SOME SORT OF RETROACTIVE REMEDY SUCH AS
PAYING REFUNDS WHEN TAX LAWS ARE STRUCK DOWN

BUT LAST YEAR'S RULING LEFT OPEN THE POSSIBILITY THAT STATES COULD AVOID
PAYING REFUNDS IF THEY GAVE TAXPAYERS AN OPPORTUNITY TO PROTEST AND WITHHOLD
THE DISPUTED TAXES RATHER THAN PAY THEM SOME STATES INCLUDING GEORGIA
HAVE RESISTED REFUND DEMANDS BY INSISTING THAT FEDERAL PENSIONERS HADN'T
TAKEN ADVANTAGE OF SUCH OPPORTUNITIES

IN OTHER ACTIONS YESTERDAY THE HIGH COURT

 AGREED TO DETERMINE WHETHER A DREDGING COMPANY ACCUSED OF CAUSING THE
APRIL 1992 FLOOD OF CHICAGO'S UNDERGROUND TUNNELS MAY USE FEDERAL ADMIRALTY
LAW TO LIMIT ITS LIABILITY THE CITY OF CHICAGO AND A PROPERTY OWNER ARE
APPEALING A LOWER COURT'S RULING THAT LAWSUITS GROWING OUT OF THE FLOOD
SHOULD BE GOVERNED BY US ADMIRALTY LAW RATHER THAN ILLINOIS STATE LAW AND
SHOULD BE HEARD IN FEDERAL COURT THE DREDGING COMPANY ALLEGEDLY DAMAGED THE
TUNNELS IN THE COURSE OF REPLACING PILINGS AT BRIDGES OVER THE CHICAGO
RIVER GRUBART VS GREAT LAKES DREDGE & DOCK CO

 DECLINED TO CONSIDER AN APPEAL BY BOEING CO THAT CHALLENGED THE
CONSTITUTIONALITY OF A FEDERAL WHISTLEBLOWER LAW AT ISSUE WERE PRIVATE
SUITS BROUGHT UNDER THE FALSE CLAIMS ACT THAT LAW PERMITS INDIVIDUALS
ACTING ON BEHALF OF THE US TO CHARGE GOVERNMENT CONTRACTORS WITH FRAUD
AND KEEP PART OF THE WINNINGS IF THEIR SUITS ARE SUCCESSFUL BOEING CO VS
US

 REFUSED TO INTERVENE IN THE TANGLED BANKRUPTCYLAW PROCEEDINGS INVOLVING
THE MAIN PIPELINE SUBSIDIARY OF COLUMBIA GAS SYSTEM INC THE JUSTICES
DECLINED TO DISTURB A RULING THAT ALLOWED THE PIPELINE UNIT TO PAY 160
MILLION IN OBLIGATIONS TO ITS RETAIL GAS COMPANY CUSTOMERS SOME OF WHOM
ALSO ARE ITS CORPORATE AFFILIATES THE TRANSFER WAS OPPOSED BY A COMMITTEE
OF UNSECURED CREDITORS UNSECURED CREDITORS VS COLUMBIA GAS TRANSMISSION
CORP

 REJECTED AN APPEAL BY A GROUP OF VIETNAM VETERANS AND THEIR RELATIVES WHO
SOUGHT TO LAUNCH A NEW ROUND OF SUITS AGAINST MAKERS OF THE DEFOLIANT AGENT
ORANGE LOWER FEDERAL COURTS RULED IN EFFECT THAT A 180 MILLION MASS
SETTLEMENT IN 1984 BLOCKED FURTHER CLAIMS EVEN BY PEOPLE WHOSE INJURIES
WEREN'T KNOWN AT THE TIME OF THE SETTLEMENT IVY VS DIAMOND SHAMROCK
CHEMICALS CO

 REFUSED TO HEAR AN APPEAL BY OLIN CORP OF AN ORDER THAT IT DIVEST ITSELF
OF A BUSINESS THAT MAKES CHEMICALS FOR CLEANING SWIMMING POOLS THE FTC HAD
FOUND THAT OLIN'S 1985 ACQUISITION OF THE BUSINESS FROM FMC CORP VIOLATED
ANTITRUST LAWS BY CREATING THE PROSPECT OF REDUCED COMPETITION IN THE
ALREADY CONCENTRATED POOLCLEANING CHEMICALS INDUSTRY A LOWER COURT UPHELD
THE FTC FINDING OLIN BOUGHT THE BUSINESS FOR 495 MILLION OLIN CORP VS
9402230119 940223 BROKERAGEFIRM EARNINGS SLIPPED IN 4TH QUARTER

NEW YORK THE WALL STREET BOOM MAY BE SLOWING DATA RELEASED BY THE NEW
YORK STOCK EXCHANGE INDICATES

THE BIG BOARD REPORTED YESTERDAY THAT THE AGGREGATE PRETAX EARNINGS OF
PROFITABLE SECURITIES FIRMS IN THE FOURTH QUARTER OF 1993 SLIPPED 03 TO
2183 BILLION FROM 2189 BILLION IN THE THIRD QUARTER

HOWEVER THE FOURTHQUARTER TOTAL WAS STILL 54 AHEAD OF THE 1421 BILLION
TOTAL A YEAR EARLIER

FOR THE YEAR THE INDUSTRY HAD PRETAX EARNINGS OF 89 BILLION IN 1993 UP
39 FROM 64 BILLION IN 1992 THE BIG BOARD REPORTS

REVENUES HIT A RECORD 732 BILLION UP FROM 628 BILLION IN 1992 THE
INDUSTRY'S ASSETS CLIMBED TO 941 BILLION ALSO A RECORD FROM 744 BILLION
9402230118 940223 INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD
L HOLMAN

COMPUTER SOFTWARE VIRUSES AND LAX SAFEGUARDS IN CHINA THREATEN THE
NATION'S SECURITY THE OFFICIAL BEIJING EVENING NEWS SAID COMPUTERCRIME
INVESTIGATORS ARE CHECKING THE CAPITAL'S COMPUTER CENTERS TO COMBAT
HIGHTECH SUBVERSIVES

OF GOVERNMENT AGENCIES WITH COMPUTERS 80 DON'T HAVE SYSTEMS TO PROTECT
THEIR DATA THE NEWSPAPER SAID AND AN ESTIMATED 90 OF ALL MICROCOMPUTERS
IN CHINA ARE INFECTED BY VIRUSES WHICH CAN DESTROY FILES THIS INDICATES
HIGH POTENTIAL TO COMPROMISE GOVERNMENT DATA AND HURT CHINA'S FLEDGLING
INFORMATION INDUSTRY

THE PUBLIC SECURITY MINISTRY'S COMPUTERCRIME TASK FORCE FORMED A FEW YEARS
AGO HAS DISTRIBUTED ITS OWN ANTIVIRUS SOFTWARE BUT VIRUSES HAVE SPREAD
QUICKLY BECAUSE OF HACKERS' EFFORTS AND RAMPANT PIRACY OF COMPUTER PROGRAMS

THE GOVERNMENT ESTIMATED ONE MILLION PERSONAL COMPUTERS ARE IN USE IN CHINA
BUT INDUSTRY MONITORS PUT THE TOTAL AT THREE MILLION AND EXPECT THE NUMBER
TO GROW TO FOUR MILLION THIS YEAR

THE ITALIAN GOVERNMENT WILL DOCK ITS EMPLOYEES' SALARIES EACH TIME THEY DUCK
OUT TO COFFEE BARS THE CIVIL SERVICE MINISTRY SAID ITALY NEEDS TO DISMANTLE
ITS INGRAINED COFFEEBREAK CULTURE AND EMULATE FELLOW EUROPEAN UNION
COUNTRIES' DELIVERY OF PUBLIC SERVICES THE MOVE WAS THE LATEST IN THE
MINISTRY'S EFFORT TO OVERHAUL ITALY'S BUREAUCRACY KNOWN FOR ITS
INEFFICIENCY DESPITE ALL THAT CAFFEINE POWER STEAMED CIVIL SERVANTS SAID
THEIR HARD WORK MERITS FREQUENT COFFEE BREAKS

PRIME MINISTER EDOUARD BALLADUR UNVEILED PLANS FOR FRANCE TO DEVELOP ITS OWN
INFORMATION SUPERHIGHWAY WITH TESTING TO START BY YEAR END TO PRODUCE A
REPORT FOR DRAFTING LEGISLATION FOR THE PROJECT HE APPOINTED GERARD THERY
WHO PRESIDED OVER FRANCE TELECOM'S MODERNIZATION AND THE LAUNCH OF THE
INTERACTIVE MINITEL SERVICE NOW COMMON IN HOMES AND BUSINESSES MR
BALLADUR WHO WANTS TO CREATE MORE JOBS SUGGESTED A GROWTH PACT TO SPUR
INVESTMENT BY ALLOWING LINKS AMONG THE FRANCE TELECOM MONOPOLY CABLE
TELEVISION OPERATORS TV STATIONS MULTIMEDIA PUBLISHERS AUDIOVISUAL
PRODUCERS AND COMPUTER SERVICES OPERATORS

THE SELLOFF OF 507 OF A BIG RUSSIAN AUTO MAKER WAS CANCELED BECAUSE OF
MANAGERS' ILLEGAL ACTIONS TO ACQUIRE STOCK THE ITARTASS NEWS AGENCY SAID
SHARES IN THE GORKY AUTOMOBILE FACTORY KNOWN AS GAZ FOR ITS RUSSIAN
INITIALS WERE TO BE DISTRIBUTED TO CITIZENS IN EXCHANGE FOR PRIVATIZATION
VOUCHERS BUT THE GOVERNMENT FOUND THAT GAZ MANAGEMENT USED 293 MILLION IN
STATE CREDITS EARMARKED FOR DEVELOPING ENGINES TO BUY VOUCHERS ON THE OPEN
MARKET THESE VOUCHERS WERE WON AT THE AUCTION THAT ENDED JAN 17 BY ABOUT
15 FRONT COMPANIES TO PREVENT OUTSIDE INVESTORS FROM GAINING A LARGE STAKE

RETAIL SALES IN CHINA LAST MONTH CLIMBED 22 TO 137 BILLION FROM A YEAR
EARLIER THE OFFICIAL ECONOMIC INFORMATION DAILY SAID THE JUMP INDICATES
CONTINUING TROUBLE FOR GOVERNMENT EFFORTS TO SLOW ECONOMIC GROWTH AFTER A
PREVIOUS REPORT THAT INDUSTRIAL OUTPUT LAST MONTH SOARED 33 CONSUMER
BUYING WAS STRONGEST IN PROSPEROUS COASTAL AREAS LED BY A 30 INCREASE FOR
RETAILERS IN GUANGDONG A RICH PROVINCE ADJACENT TO HONG KONG EVEN IN POOR
INLAND REGIONS SALES GREW 13

A MAJORITY OF SOUTH KOREAN EXPORTS LAST YEAR WENT TO DEVELOPING NATIONS
SHIFTING FROM INDUSTRIALIZED ECONOMIES SHIPMENTS TO THE US JAPAN AND
EUROPEAN UNION TOTALED 3911 BILLION DROPPING TO 476 OF TOTAL KOREAN
EXPORTS FROM 508 A YEAR EARLIER AND A PEAK OF 705 IN 1987 THE DECLINE
HAS BEEN BLAMED ON UNCOMPETITIVE QUALITY OF GOODS EXPORTS TO DEVELOPING
MARKETS IN ASIA AND THE MIDEAST ROSE 164 TO 4237 BILLION LAST YEAR OR
515 OF THE TOTAL BECAUSE OF GOODS' COMPETITIVE PRICES AND KOREAN
INVESTMENT EFFORTS

FOREIGN MINISTERS FROM THE EUROPEAN UNION AND AUSTRIA FINLAND NORWAY AND
SWEDEN BEGAN A LASTDITCH EFFORT TO AGREE BY TUESDAY ON THE FOUR COUNTRIES'
ENTRY INTO THE 12NATION TRADE BLOC

MAJOR OBSTACLES INCLUDE TRUCK TRAFFIC AGRICULTURE AND FISHING RIGHTS LAST
SUNDAY'S SWISS VOTE TO BAN FOREIGN TRUCK TRANSIT THROUGH THE ALPS
COMPLICATED DIFFICULTIES WITH AUSTRIA WHICH WANTS TO CONTINUE LIMITING
TRUCKS ON ITS ALPINE ROADS FOR A DECADE FRANCE FEARS THE SWISS ACTION COULD
DIVERT TRUCKS TO FRENCH ROADS

ON FISHING RIGHTS NORWAY WANTS IMMEDIATE ACCESS TO EU WATERS RESISTED BY
SPAIN AS ITS FLEET WAS BANNED FROM NORWEGIAN WATERS IN 1981 THIS DISPUTE
COULD PUSH THE TALKS PAST THE MARCH 1 DEADLINE

IF THE ISSUES ARE RESOLVED BY MARCH 10 THE EUROPEAN PARLIAMENT STILL COULD
DECIDE ON THE MEMBERSHIPS BEFORE ITS JUNE ELECTIONS IF THE MATTER GOES TO
THE NEW ASSEMBLY THE FOUR COUNTRIES WOULD MISS THEIR TARGET FOR ADMISSION
BY JANUARY

THE NORTHEASTERN BRAZILIAN CITY OF FORTALEZA A COASTAL RESORT POPULAR WITH
FOREIGN TOURISTS DECLARED A STATE OF EMERGENCY BECAUSE OF AN OUTBREAK OF
9000 CASES OF CHOLERA AND ACUTE DIARRHEA THAT HAVE CAUSED EIGHT DEATHS IN
THE PAST TWO MONTHS  THE UFFIZI ART GALLERY IN FLORENCE ITALY
REOPENED THE MICHELANGELO ROOM DAMAGED LAST MAY BY A CAR BOMB EXPLOSION
FIFTEEN OTHER ROOMS IN THE WEST WING ARE TO BE RESTORED BY YEAR END
9402230117 940223 ABREAST OF THE MARKET STOCKS RALLY ON SOOTHING WORDS
 FROM GREENSPAN ON INTEREST RATES  BY DAVE PETTIT SPECIAL TO THE
WALL STREET JOURNAL

NEW YORK STOCKS RALLIED AFTER REASSURING WORDS ON INTEREST RATES FROM
FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN

THE FED CHIEF OFFERED NO NEGATIVE SURPRISES IN HIS SEMIANNUAL APPEARANCE
BEFORE A HOUSE OF REPRESENTATIVES SUBCOMMITTEE AND THAT SOOTHED STOCK AND
BOND INVESTORS WHO HAVE BEEN WORRIED ABOUT A RISE IN RATES

THE DOW JONES INDUSTRIAL AVERAGE CLOSED WITH A GAIN OF 2420 OR 062 TO
391166 AFTER TUMBLING MORE THAN 35 POINTS ON FRIDAY LONGTERM BONDS ADDED
5/16 POINT FOLLOWING A SLUMP LAST WEEK THAT LIFTED THE YIELD ON THE 30YEAR
TREASURY TO 662 FOR THE FIRST TIME SINCE JULY

BROADBASED INDEXES ALSO ADVANCED BUT GAINERS LED LOSERS BY A SLIM MARGIN
OF 1139 TO 1003 ON THE NEW YORK STOCK EXCHANGE VOLUME WAS MODERATELY
ACTIVE AT 270637000 MILLION SHARES DOWN FROM 289302000 MILLION FRIDAY
THE MARKET WAS CLOSED MONDAY FOR PRESIDENTS DAY

THE STANDARD & POOR'S 500 STOCK INDEX ROSE 377 OR 081 TO 47146 AND THE
NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 161 OR 062 TO 26148

THE NASDAQ STOCK MARKET WHICH OUTPERFORMED OTHER MARKETS LAST WEEK WAS
WEAK MUCH OF YESTERDAY BUT IT TURNED HIGHER AS BIG BOARD STOCKS REACHED
THEIR BEST LEVELS LATE YESTERDAY THE NASDAQ COMPOSITE INDEX CLOSED WITH A
GAIN OF 230 OR 029 TO 79115

THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 143 OR 030 TO
47238

UTILITIES AND FINANCIAL STOCKS WERE AMONG THE MAJOR BENEFICIARIES OF THE
EASE IN INTERESTRATE JITTERS EARNINGS IN BOTH INDUSTRIES ARE CLOSELY
LINKED TO THE DIRECTION OF RATES

THE DOW JONES UTILITIES AVERAGE WHICH FRIDAY SKIDDED TO ITS LOWEST LEVEL
SINCE APRIL 1992 JUMPED 323 OR 155 TO 21177 MEANWHILE CITICORP ROSE
1 TO 41 1/8 WELLS FARGO GAINED 3 1/2 TO 138 1/8 BANK OF NEW YORK ADDED 1
1/8 TO 53 3/4 AND CIGNA WAS UP 7/8 TO 67 3/8

SHARES OF MANY BIG CONSUMERPRODUCTS COMPANIES THE MARKET'S TRADITIONAL
GROWTH STOCKS WERE ALSO LIFTED BY THE FOCUS ON RATES THE VALUATIONS OF
GROWTH STOCKS ARE MORE SENSITIVE THAN THE OVERALL STOCK MARKET TO THE
DIRECTION OF INTEREST RATES

PROCTER & GAMBLE ROSE 1 5/8 TO 59 KELLOGG INCREASED 5/8 TO 51 1/2 GILLETTE
GAINED 1 3/8 TO 62 5/8 ANHEUSERBUSCH JUMPED 3/4 TO 49 1/4 AND MOTOROLA
ADDED 3 1/4 TO 107

A STRONGERTHANEXPECTED EARNINGS REPORT FROM DEERE HELPED TRIGGER BUYING IN
SOME OTHER ECONOMICALLY SENSITIVE ISSUES SAID EDWARD COLLINS HEAD OF US
EQUITY TRADING AT DAIWA SECURITIES DEERE ROSE 5 1/4 TO 82 1/2 MINNESOTA
MINING & MANUFACTURING INCREASED 2 3/8 TO 107 3/4 AND CATERPILLAR WAS UP 2
1/2 TO 110 5/8

DEERE SAID ITS EARNINGS JUMPED TO 102 A SHARE FOR THE FOURTH QUARTER
ANALYSTS HAD FORECAST A PROFIT OF JUST 42 CENTS ACCORDING TO INSTITUTIONAL
BROKERS ESTIMATE SYSTEM A YEAR AGO THE MOLINE ILL FARMEQUIPMENT
COMPANY HAD A LOSS OF 48 CENTS EXCLUDING A HUGE CHARGE TIED TO AN
ACCOUNTING CHANGE

MEDIA VISION CONTINUED TO SLIDE AFTER ITS EARNINGS REPORT LAST WEEK
DROPPING 3 1/2 TO 31 3/4 ON NASDAQ AFTER TUMBLING 7 5/8 FRIDAY EVEN THOUGH
THE FREMONT CALIF MAKER OF MULTIMEDIA PRODUCTS POSTED IMPROVED RESULTS
INVESTORS WERE DISAPPOINTED THE GAINS WEREN'T EVEN LARGER THEY WERE ALSO
SAID TO BE TROUBLED BY A RISE IN INVENTORIES AT THE COMPANY

BRITISH PETROLEUM ROSE 3/4 TO 64 5/8 ON MARKETLEADING VOLUME OF 188
MILLION OBSERVERS TIED THE ACTIVITY TO TRADING STRATEGIES LINKED TO A
DIVIDEND THE BRITISH COMPANY WILL PAY LATER THIS YEAR

MEXICAN ISSUES FELL IN TANDEM WITH THE MARKET IN THAT COUNTRY A MOVE
TRADERS THERE TIED TO DISAPPOINTMENT ABOUT A WEAKERTHANEXPECTED GOVERNMENT
REPORT ON ECONOMIC CONDITIONS THERE

AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO A TELEPHONESERVICE
PROVIDER DROPPED 1 5/8 TO 69 3/4 THOSE OF GRUPO TRIBASA A CONSTRUCTION
CONCERN LOST 1 TO 35 7/8 AND ADRS OF GRUPO FINANCIERO SERFIN A BANKING
COMPANY FELL 1 1/8 TO 32 3/8

TECH DATA JUMPED 1 1/2 TO 37 3/4 ON NASDAQ AFTER THE COMPUTERPERIPHERALS
MAKER IN CLEARWATER FLA ESTIMATED ITS EARNINGS FOR THE FOURTH QUARTER
ENDED LAST MONTH AT 48 CENTS A SHARE UP FROM 36 CENTS A YEAR AGO

ANALYSTS SAID WORRIES ABOUT THE FEDERAL RESERVE CHAIRMAN'S SCHEDULED
TESTIMONY CONTRIBUTED TO SELLING IN STOCKS AND BONDS LATE LAST WEEK HIS
APPEARANCE BEFORE CONGRESS LAST MONTH PRECEDED BY LESS THAN A WEEK A CENTRAL
BANK CREDIT TIGHTENING THAT KNOCKED 96 POINTS OFF THE DOW JONES INDUSTRIAL
AVERAGE

AFTER MR GREENSPAN'S TESTIMONY MANY ECONOMISTS STILL EXPECT THE FEDERAL
RESERVE TO PUSH UP SHORTTERM RATES SOON BUT JOSEPH MCALINDEN CHIEF
INVESTMENT OFFICER AT DILLON READ SAID GREENSPAN'S COMMENTS CALMED FEARS
AMONG THOSE LOOKING FOR A RAPID SERIES OF RATE INCREASES 9402230116
940223 CLOISTERED NO MORE A NUN TURNED CRITIC BECOMES A SMASH HIT 
 SISTER WENDY LIT BY WONDER' OF ART LETS BBC VIEWERS SEE BEAUTY
EVEN IN NUDES  BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET
JOURNAL

QUIDENHAM ENGLAND IT WAS JUST OVER A YEAR AGO THAT SISTER WENDY BECKETT
A FRAIL GAPTOOTHED NUN EMERGED FROM A TRAILER HERE ON THE GROUNDS OF A
CARMELITE MONASTERY WHERE SHE LIVED IN SOLITUDE FOR 22 YEARS HER
DESTINATION THE WORLD

SISTER WENDY WASN'T JUST PRAYING ALL THOSE YEARS ALONE THOUGH A LOT OF
THAT WAS GOING ON TOO SHE WAS WRITING ABOUT ART ART MIND YOU SHE ONLY
HAD SEEN IN BOOKS AND ON MUSEUM POST CARDS A BRITISH BROADCASTING CORP
PRODUCER SPOTTED HER SPIRITED DOWNTOEARTH ARTICLES AND CONVINCED THE
MOTHER SUPERIOR THAT SISTER WENDY COULD WORK WONDERS FOR ART APPRECIATION 
NOT TO MENTION THE IMAGE OF NUNS

ON CAMERA WITH HER EDUCATED AND PRECISE ACCENT AND HER BLACK HABIT
BILLOWING BEHIND HER SHE PROVED A NATURAL SISTER WENDY'S ODYSSEY
DRAWING 35 MILLION VIEWERS IS THE MOST SUCCESSFUL BBC ARTS PROGRAM SINCE
KENNETH CLARK'S 1970S SERIES CIVILISATION

THE SHOW IS NO SLICK PRODUCTION SISTER WENDY WHO NEVER BOTHERS WITH A
SCRIPT SIMPLY STANDS IN FRONT OF ART WORKS AND TALKS NEITHER IS IT A
SERIES OF PEDANTIC LECTURES BY A STERN TEACHING NUN VIEWERS LOVE SISTER
WENDY'S ENTERTAINING AND PROVOCATIVE CRITIQUES PARTICULARLY WHEN THEY
INVOLVE NUDES AND EARTHY DETAILS

DESCRIBING THE TWO FIGURES IN STANLEY SPENCER'S SELFPORTRAIT WITH PATRICIA
PREECE SISTER WENDY GUSHES I LOVE ALL THOSE GLISTENING STRANDS OF HIS
HAIR AND HER PUBIC HAIR IS SO SOFT AND FLUFFY  

THE 63YEAROLD NUN CALLS HER LOVE FOR ART A WAY OF LOVING GOD AND HER
APPROACH IS BASED ON HER BELIEF THAT EVEN A WOMAN IN A SUPERMARKET IS
PERHAPS BETTER PREPARED TO EXPERIENCE ART THAN THE SCHOLAR IN HIS IVORY
TOWER

VIEWERS APPARENTLY AGREE SO POPULAR WAS THE INITIAL SIXPART SERIES ON ART
IN BRITAIN THAT THE BBC SHOT AND NEXT MONTH WILL BEGIN AIRING A NEW
10PART SERIES ON ART MUSEUMS OF CONTINENTAL EUROPE SISTER WENDY'S GRAND
TOUR WGBHTV IN BOSTON IS TALKING WITH HER ABOUT DOING A SHOW IN THE US

SISTER WENDY JOINED THE SISTERS OF NOTRE DAME TEACHING ORDER WHEN SHE WAS
JUST 16 I CAN'T THINK OF A TIME WHEN IT WASN'T CLEAR TO ME SHE SAYS OF
HER DECISION BUT DEVOTION TO A RELIGIOUS LIFE DID NOT MEAN SHUTTING OUT
LIFE IN GENERAL IT MEANT BALANCING HER ENTHUSIASMS SISTER WENDY ATTENDED
OXFORD UNIVERSITY AND WON THE HIGHEST HONORS FOR ENGLISH BUT HER ORDER DID
NOT PERMIT HER TO MINGLE WITH THE OTHER STUDENTS SHE TAUGHT FOR 16 YEARS
THEN ASKED FOR A SPECIAL DISPENSATION FROM THE TEACHING NUNS TO LIVE A LIFE
OF CONTEMPLATIVE PRAYER IN SOLITUDE PERMISSION GRANTED SISTER WENDY IN
1970 MOVED TO A TRAILER ON THE CARMELITE MONASTERY GROUNDS A WOODED SPOT IN
NORFOLK COUNTY WHERE THRUSHES SING AND PHEASANTS SKIRT ALONG GRASSY
CLEARINGS

THOUGH SHE DID NOT BECOME A CARMELITE SISTER WENDY DEVISED A REGIMEN MORE
RIGID THAN THE CLOISTERED NUNS FOLLOWED RISING AT 3 AM PRAYING SEVEN
HOURS A DAY AND SUBSISTING MAINLY ON FRUITS AND SKIM MILK HER SOLITARY LIFE
LEFT HER TIME TO STUDY AND ABOUT 12 YEARS AGO SHE THREW HERSELF INTO ART

IN MANY WAYS I AM AN INADEQUATE PERSON SHE SAYS I AM NO GOOD AT
COOKING SEWING OR GARDENING YET I AM LIT UP BY THE WONDER OF WHAT I SEE
IN ART IF A LIMITED PERSON LIKE ME CAN RECEIVE THIS ENRICHMENT SO CAN
ANYBODY

FUELED BY HER STUDY OF ART BOOKS AND JOURNALS SISTER WENDY BEGAN TO WRITE
FIRST MAGAZINE ARTICLES THEN A BOOK CONTEMPORARY WOMEN ARTISTS WHICH
BROUGHT HER TO THE BBC'S ATTENTION NO ARTSPEAK HER TASTE CASTS A WIDE NET
EVERYTHING FROM BERNINI'S NEOCLASSICAL RAPE OF PROSERPINE TO PAUL KLEE'S
ABSTRACT ART AND SHE HAS BEEN CRITICIZED FOR A CERTAIN LACK OF
DISCRIMINATION BRIAN SEWELL THE SHARPPENNED ART CRITIC OF LONDON'S
EVENING STANDARD SAYS SHE'S RATHER LIKE YOUR ELDERLY AUNT WHO WANTS TO
PRESENT EVERYTHING AS BEING SWEET AND BENIGN IF I WAS AN ARTIST AND GOT
RAVE REVIEWS FROM HER I'D BE QUITE DISTURBED

OTHERS SAY THAT'S HER CHARM SHE DOESN'T SPEAK IN ARTSPEAK SAYS RACHEL
BARNES A LECTURER AT THE TATE GALLERY AND NATIONAL GALLERY IN LONDON SHE
HAS GOT A GIFT FOR OPENING UP ART SO THAT PEOPLE ORDINARY PEOPLE CAN
SEE WHAT SHE HAS

HEAR SISTER WENDY ON THE TREATMENT OF SAINT SEBASTIAN IN RENAISSANCE ART
HE WAS A FAVORITE SUBJECT  BUT I AM AFRAID THIS WAS NOT BECAUSE HE WAS
AN HEROIC CHRISTIAN MARTYR RATHER IT WAS A CHANCE TO PAINT A GLORIOUS MALE
NUDE OR THE DEPICTION OF VENUS IN BOTTICELLI'S BIRTH OF VENUS YOU
CAN'T EVER IMAGINE HER DOING THE WASHING UP

LIFE SINCE THE BBC CAME KNOCKING IS LIKE BEING IN A DREAM THE NUN SAYS
SHE RECEIVES DOZENS OF LETTERS A DAY AND HAS BEEN FEATURED AT BOOK SIGNINGS
PRESS CONFERENCES AND ON A QUIZ SHOW ON THE ROAD SHE HAS TAKEN TO EATING
STEAK AND ICE CREAM AND DRINKS DIET COKE SHE TOOK HER FIRST RIDE IN A
SPORTS CAR HER PRODUCER'S MG

THE BBC WON'T DISCLOSE WHAT SISTER WENDY EARNS FROM HER SHOWS AND THEIR
ASSOCIATED BOOKS EXCEPT TO SAY IT IS A SUBSTANTIAL SUM HER FEES GO TO
THE CARMELITE ORDER WHICH RUNS A HOSPICE FOR SICK CHILDREN ON THE MONASTERY
GROUNDS

SISTER WENDY STILL AWAKENS AT 3 AM AND DEVOTES THE SAME NUMBER OF HOURS TO
PRAYER AS BEFORE AND ATTENDS DAILY MASS WITH THE CARMELITES SHE STILL LIVES
IN SECLUSION ON THEIR GROUNDS A FEW MONTHS AGO THOUGH SHE AGREED
RELUCTANTLY TO GIVE UP HER LEAKY UNINSULATED TRAILER FOR A SECONDHAND
ONEROOM HOUSE ON CINDER BLOCKS WHOSE BEST FEATURE SHE NOTES IS AN INDOOR
LAVATORY

SHE HAS A BED A DESK A VIRTUAL GALLERY OF ART POSTERS AND BOOKS SO
MANY THAT HER FELLOW NUNS FOUND HER BURIED UNDER THEM ONE MORNING WHEN SHE
WAS LATE FOR MASS AFTER A SHELF OVER HER BED COLLAPSED

THERE ARE NO MIRRORS IN HER CABIN AND NO TV THE BBC PROVIDED THE
CARMELITES WITH A TV AND VIDEO PLAYER ONE EVENING SO THE NUNS COULD WATCH
SISTER WENDY'S SERIES THEY CHEERED AT THE END OF EACH SEGMENT THEN ASKED
TO WATCH THE WHOLE THING AGAIN SAYS SISTER ALIES THERESE THE CLOISTERED
ORDER'S LIAISON WITH THE OUTSIDE WORLD

RIGHT NOW SISTER WENDY IS OUT PROMOTING HER NEW SERIES AND THE BOOK BASED
ON IT SIPPING TEA IN THE ELEGANT LANSDOWNE CLUB IN LONDON RECENTLY BEFORE
A THRONG OF REPORTERS SHE ADMITS THERE ARE SOME BENEFITS TO GETTING OUT
INTO THE WORLD LIKE WATCHING TV SNOOKER A VERSION OF POOL

OOH THE DRAMA WHEN THAT BALL COMES RIGHT TO THE EDGE OF THE HOLE AND JUST
STOPS  IT MAKES ME THINK OF HOW GOD MUST FEEL WHEN HE SEES US ON THE
BRINK OF SOMETHING AND THEN WE JUST STOP 9402230115 940223 WINTER
OLYMPICS 1994 LILLEHAMMER NORWAY  SHORTTRACK ESCAPADES 
HOCKEY MEETS ICE CAPADES  BY FREDERICK C KLEIN STAFF REPORTER
OF THE WALL STREET JOURNAL

HAMAR WE WHO COVER THE WINTER OLYMPICS OFTEN MUST EXPLAIN THE STRANGE AND
EXOTIC SPORTS THAT FILL ITS CALENDAR SHORTTRACK SPEED SKATING IS SUCH A
ONE

IT WORKS LIKE THIS THE CONTESTANTS TOE A MARK AND WHEN THE STARTER FIRES A
GUN THEY GO THE FIRST ACROSS THE FINISH LINE WINS

IF YOU MUST ASK WHAT'S SO UNUSUAL ABOUT THAT YOU HAVEN'T BEEN PAYING
ATTENTION TO THE DOINGS HERE SHORT TRACK IS THE ONLY I REPEAT ONLY 
PURE RACE IN THESE GAMES THE REST ARE SINGLES OR PAIRS AGAINST THE CLOCK
OR THE STAGGEREDSTART PURSUIT FORMAT OF SOME CROSSCOUNTRY SKIING
CONTESTS

THE TOOSHORT SHORTTRACK PROGRAM TOTALING TWO INDIVIDUAL RACES AND A RELAY
EACH FOR MEN AND WOMEN GOT STARTED YESTERDAY AT HAMAR AMPHITHEATER AND THE
NEARFULLHOUSE CROWD OF ABOUT 6000 BIGGER THAN THE ONES FOR MANY OF THE
STRANGE AND EXOTIC FIGURESKATING EVENTS THAT HAD HERETOFORE OCCUPIED THE
VENUE SEEMED TO LIKE IT

WHAT'S NOT TO LIKE THE RACERS WENT AROUND AND AROUND THE HOCKEYRINKSIZED
111METER COURSE THERE WERE THRILLS AND SPILLS AND YOU DIDN'T HAVE TO LOOK
TO THE CLOCK OR A BUNCH OF DOURFACED NUMBERSBRANDISHING JUDGES TO TELL
WHO WON FYI KIM KI HOON OF SOUTH KOREA DID IN THE MEN'S 1000 METERS AND
THE SOUTH KOREAN TEAM TOOK THE WOMEN'S 3000METER RELAY THE US WAS THIRD
IN THAT ONE

SHORT TRACK MADE ITS DEBUT AS AN OLYMPIC MEDAL SPORT IN 1992 AT ALBERTVILLE
BUT ITS ORIGINS GO BACK MUCH FURTHER INDEED WHEN PEOPLE RACED ON SKATES IN
PREOLYMPIC TIMES IT WAS IN PACKS AND THAT'S THE WAY MOST AMERICAN METRIC
PAIRS AGAINST THE CLOCK ON A 400METER OVAL SPEED SKATERS BONNIE BLAIR
INCLUDED WERE INTRODUCED TO THE ACTIVITY AS CHILDREN MOST PROBABLY WOULD
HAVE STUCK WITH IT IF IT HAD OFFERED SUFFICIENT COMPETITIVE OPPORTUNITIES

WITH A HISTORICAL BREAK OR TWO OLYMPIC SPEED SKATING GENERALLY MIGHT HAVE
DEVELOPED ALONG PACKSTYLE LINES THE OVERSEERS OF THE FIRST WINTER GAMES IN
THE US IN 1932 AT LAKE PLACID NY PRESCRIBED THE FORMAT THEN KNOWN
AS NORTH AMERICAN RULES FOR ALL OF THE RACES THERE ONE UPSHOT WAS THAT
CLAS THUNBERG OF FINLAND THE PREMIER SPEED SKATER OF HIS TIME WITHDREW IN
DISGUST FROM THE COMPETITION ANOTHER WAS THAT AMERICAN MEN WON ALL FOUR
GOLD MEDALS WOMEN'S OLYMPIC SPEED SKATING DIDN'T BEGIN UNTIL 1960 ALAS
WHEN THE GAMES RETURNED TO EUROPE IN 1936 THE OLD WORLD WENT BACK TO THE
OTHER WAY

SHORT TRACK'S LURE FOR US YANKS IS SEEN IN THE BACKGROUNDS OF SOME OF THE
PRINCIPAL US PACK SKATERS CATHY TURNER OF ROCHESTER NY THE GOLDMEDAL
WINNER AT 500 METERS AT ALBERTVILLE IS A FORMER METRIC SKATER SO IS ERIC
FLAIM OF MILWAUKEE IN FACT HE WON A SILVER MEDAL IN THE FORM OVER 1500
METERS IN THE 1988 GAMES AT CALGARY AND STILL HOLDS THE US MEN'S
LONGTRACK RECORDS AT 1500 5000 AND 10000 METERS HE ALSO HOLDS THE
WORLD'S SHORTTRACK MARK AT 1500

BOTH DESCRIBE THEIR CONVERSION IN TERMS OF FUN YOU HAVE TO JUMP OVER
BLADES MAKE QUICK MOVES AND BE EXPLOSIVE AT THE RIGHT TIME IT'S LIKE
DRIVING IN TRAFFIC EXCEPT YOU'RE THE GAS SAYS THE 31YEAROLD TURNER WHO
WON HER '92 MEDAL BY A PORTION OF THE LENGTH OF A STUCKOUT SKATE BLADE

THE IDEA IS TO GET TO THE FINALS AND SEE WHAT HAPPENS ANY GIVEN DAY
ANYBODY CAN TAKE FIRST WHICH KEEPS THINGS INTERESTING SAYS MR FLAIM
WHO'S 26

AS THE ABOVE INDICATES THERE'S MORE THAN A LITTLE UNPREDICTABILITY IN SHORT
TRACK THAT'S BECAUSE POSITIONING IS ALLIMPORTANT IN THE COURSE'S CROWDED
CONFINES THE QUICK 'ROUND'N'ROUND AND FREQUENT OPPORTUNITIES FOR CHANGES
OF POSITION MAKE IT LOOK LIKE BICYCLE RACING OR BETTER YET ROLLER DERBY

PARTICIPANTS REJECT THE LATTER COMPARISON ROUGH STUFF ISN'T PERMITTED
SHORT TRACK IS NOT ROLLER DERBY DECLARES MS TURNER SO WHY AREN'T WE
CONVINCED

IF LAST NIGHT'S GOAROUNDS PROVED ANYTHING IT'S THAT THE SHORTTRACK FORMAT
IS NO RESPECTER OF CREDENTIALS MICHAEL MCMILLEN OF NEW ZEALAND THE MEN'S
WORLD RECORD HOLDER AT 1000 METERS WAS BOUNCED IN THE FIRST ROUND LAST IN
HIS FOURMAN HEAT A COUPLE OF EXWORLD CHAMPS ALSO FELL THERE MR FLAIM
THE MAIN US HOPE LOST A SECONDPLACE QUALIFYING BERTH BY A SKATEBLADE'S
MARGIN IN A QUARTERFINAL HEAT IN WHICH ALL FOUR CONTESTANTS BROKE THEIR
NATIONAL RECORDS

IN ONE SEMIFINAL TWO OF THE FOUR CONTESTANTS CRASHED ON THE NEXTTOLAST
LAP LEAVING THE MEDALROUND PLACES TO THEIR FOES MR KIM WHO WON THE RACE
AT ALBERTVILLE GOT THE GOLD ONLY AFTER ONE OF THE FOUR FINALISTS CANADA'S
DERRICK CAMPBELL FELL GOING FOR A LEAD IN THE LATE GOING

THE RELAY WAS EVEN WILDER WITH SKATERS PLUNGING ON AND OFF THE TRACK AT
INTERVALS NOT DISCERNIBLY REGULAR INSTEAD OF THE BATON HANDOFFS OF TRACK
NEW RELAY LEGS START WITH ONE SKATER FIRMLY PUSHING THE BUTT OF HER
SUCCESSOR

THE US TOOK SECOND IN THE WOMEN'S RELAY IN 1992 AND WERE THIRD MOST OF
THE WAY YESTERDAY A BRONZE MEDAL SEEMED SECURE WITH NINE LAPS TO GO WHEN A
CANADIAN SKATER FELL BUT THE US'S NICOLE ZIEGELMEYER FELL EVEN WORSE WITH
FIVE LAPS LEFT AND WHOOMP THERE IT WENT APPARENTLY BUT AFTER THE RACE
THE APPARENT SECONDPLACE CHINESE TEAM WAS DISQUALIFIED FOR INTERFERENCE
AND THE US GOT THE BRONZE AFTER ALL

THERE MAY BE MORE METAL AHEAD ANDREW GABEL OF NORTHBROOK ILL IS THE
WORLD'S CHAMPION AT 500 METERS WHICH WILL BE RUN SATURDAY

MS TURNER WILL DEFEND HER 500 CROWN TOMORROW AND IF ANYONE IS QUALIFIED
FOR THE RIGORS OF SHORT TRACK SHE IS A LONGTRACK DROPOUT IN 1980 SHE
BEGAN A NEW CAREER BY ANSWERING AN AD FOR A LOUNGE SINGER SHE RETURNED TO
SKATING IN 1989 AS AN AID TO SELFDISCOVERY AND A CURE FOR DEPRESSION AFTER
WINNING THE GOLD AT ALBERTVILLE SHE JOINED THE ICE CAPADES GOING FAST'S A
PLEASURE AFTER THAT SHE SAYS 9402230114 940223 BUSINESS BRIEF FLOW
INTERNATIONAL CORP FISCAL THIRDQUARTER LOSS OF 18 MILLION IS
ESTIMATED

FLOW INTERNATIONAL CORP ESTIMATED A 18 MILLION NET LOSS FOR THE FISCAL
THIRD QUARTER ENDED DEC 31 CITING PROBLEMS AT A CONSTRUCTION PROJECT
AMONG OTHER THINGS

THE KENT WASH MAKER OF HIGHPRESSURE WATER JETS AND RELATED PRODUCTS SAID
THE LOSS WILL EQUAL 13 CENTS A SHARE ANALYSTS HAD BEEN EXPECTING THE
COMPANY TO EARN NINE TO 10 CENTS A SHARE

FLOW DIDN'T SPECIFY WHICH CONSTRUCTION PROJECT HAD CAUSED ITS PROBLEMS IT
ALSO SAID ITS BUSINESS HAD BEEN HURT BY COLD WINTER WEATHER AND THE LOS
ANGELES EARTHQUAKE HOWEVER THE COMPANY SAID LONGTERM PROSPECTS ARE SOLID
AND PREDICTED A STRONG FISCAL FOURTH QUARTER

IN NASDAQ STOCK MARKET TRADING FLOW ROSE 625 CENTS TO 8 9402230113
940223 BUSINESS BRIEF BLACK & DECKER CORP FOURTHPERIOD NET REVERSED
 LOSS ON INCREASE IN REVENUE

BLACK & DECKER CORP TOWSON MD HELPED BY A GAIN IN SALES OF CONSUMER
PRODUCTS REPORTED FOURTHQUARTER EARNINGS OF 423 MILLION OR 47 CENTS A
SHARE COMPARED WITH A YEAREARLIER LOSS

REVENUE FOR THE QUARTER CLIMBED 3 TO 144 BILLION FROM 139 BILLION IN
THE YEAREARLIER QUARTER THE COMPANY REPORTED A LOSS OF 1228 MILLION OR
151 A SHARE INCLUDING A 135 MILLION RESTRUCTURING CHARGE AND A 21
MILLION CHARGE FOR THE EARLY EXTINGUISHMENT OF DEBT

FOR 1993 THE COMPANY REPORTED EARNINGS OF 66 MILLION OR 65 CENTS A SHARE
COMPARED WITH A NET LOSS OF 3336 MILLION OR 452 A SHARE IN 1992
WITHOUT SPECIAL ITEMS PROFIT FOR 1993 WAS 95 MILLION OR 1 A SHARE UP
55 FROM 61 MILLION OR 65 CENTS A SHARE A YEAR EARLIER

THE MAKER OF TOOLS AND HOME PRODUCTS AND SUPPLIER OF INFORMATION SYSTEMS AND
SERVICES SAID IT HAD DOUBLEDIGIT SALES GAINS IN SOME PRODUCTS GOING
FORWARD IT SAID OPERATINGINCOME MARGINS WILL REFLECT THE TAPERING OFF OF
COSTS ASSOCIATED WITH INTRODUCING NEW PRODUCTS AND IMPROVING SALES AND
MARKETING SUPPORT 9402230111 940223 YOUR MONEY MATTERS TAXES 1994 
FOR DEDUCTIONS SCAN BOTH THE OBVIOUS AND THE OBSCURE  BY DEBORAH
LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL

THESE DAYS FINDING TAX DEDUCTIONS IS LIKE STRIKING OIL

WITH THE NEW TAX RATES TOPBRACKET FILERS CAN SAVE NEARLY 40 CENTS IN
FEDERAL TAXES FOR EVERY DOLLAR OF DEDUCTIONS THEY DIG UP COMPARED WITH 31
CENTS ON LAST YEAR'S RETURN INCLUDING STATE AND LOCAL INCOME TAXES A
DEDUCTIBLE DOLLAR CAN SAVE SOME PEOPLE 50 CENTS OR MORE

YOUR DEDUCTIONS ARE MORE VALUABLE THE HIGHER YOUR TAX BRACKET SAYS
DOUGLAS MUELLER PRESIDENT OF ACCOUNTING FIRM MUELLER PROST PURK &
WILLBRAND IN ST LOUIS TO UNEARTH EVERY AVAILABLE DEDUCTION FILERS NEED TO
PLUMB THE OBVIOUS AND THE OBSCURE REACHES OF THEIR FINANCIAL RECORDS TAX
PROFESSIONALS SAY A QUICK GLANCE DOWN YOUR OLD FORM 1040S AND SCHEDULE A'S
WILL EASILY JOG YOUR MEMORY FOR THE PERENNIAL WRITEOFFS SUCH AS MORTGAGE
INTEREST CHARITABLE DONATIONS AND STATE TAXES BUT TAX ADVISERS ALSO
SUGGEST INVESTIGATING SEVERAL DEDUCTIONS PEOPLE TEND TO OVERLOOK

SOME OF YOUR BEST WRITEOFFS MAY BE FORGOTTEN HOLDOVERS FROM PREVIOUS TAX
YEARS IN OTHER CASES YOU MAY FIND WRITEOFFS THAT REDUCE YOUR STATE TAXES
 NO SMALL SAVINGS WHEN TOP TAX RATES IN SOME STATES ARE 10 OR MORE AND
SOME TAXPAYERS CAN STILL CUT THEIR 1993 TAX BILLS BY MAKING HEFTY
CONTRIBUTIONS TO A RETIREMENT ACCOUNT EVEN ONE THEY SET UP NOW

FOR STARTERS ASK YOURSELF IF YOU WROTE AN INCOMETAX CHECK TO YOUR STATE
REVENUE DEPARTMENT IN APRIL FOR MONEY YOU OWED ON YOUR 1992 TAXES THE
PAYMENT IS DEDUCTIBLE ON YOUR 1993 FEDERAL RETURN SIMILARLY PROPERTY TAXES
YOU PAID EARLY IN 1993 EVEN IF THEY WERE FOR TAX YEAR 1992 ARE NOW
DEDUCTIBLE

MANY PEOPLE MAY NOT REALIZE THAT THEY CAN DEDUCT AUTOMOBILE PROPERTY TAXES
THEY PAY TO THEIR STATE IF THE STATE ASSESSES TAXES ON CARS BASED ON THEIR
PROPERTY VALUE

ADDITIONALLY OVER THE YEARS TAXPAYERS MAY HAVE HOARDED CAPITAL LOSSES THEY
COULDN'T DEDUCT BECAUSE THEY DIDN'T HAVE ENOUGH OFFSETTING INCOME OR FOR
THE SAME REASON THEY MAY HAVE INVESTMENT INTEREST EXPENSES THEY COULDN'T
DEDUCT FOR 1992 NOW THEY MAY BE ABLE TO USE THOSE OLD LOSSES TO OFFSET
GAINS THEY REALIZED ON INVESTMENTS IN 1993

PEOPLE WHO OWNED INVESTMENTS LIKE TRUSTS OR LIMITED PARTNERSHIPS THAT WERE
LIQUIDATED OR SOLD IN 1993 SHOULD ALERT THEIR TAX PROFESSIONALS THAT THEY
MAY HAVE LEFTOVER DEDUCTIONS FROM THOSE INVESTMENTS

FOR INSTANCE LOSSES FROM LIMITED PARTNERSHIPS OVER THE YEARS MAY HAVE BEEN
NONDEDUCTIBLE BECAUSE THEY WERE PASSIVE AND COULD OFFSET INCOME ONLY FROM
SIMILAR PASSIVE INVESTMENTS IN THE YEAR THE INVESTMENT IS SOLD OR OTHERWISE
DISPOSED OF HOWEVER YOU CAN USUALLY DEDUCT ALL THOSE CARRIEDFORWARD
PASSIVE LOSSES AGAINST CAPITAL GAINS OR ORDINARY INCOME SUCH AS YOUR
SALARY BUT TAXPAYERS SHOULD CONSULT A TAX ADVISER BEFORE TAKING SUCH LOSSES
SINCE THE RULES DO GET PRETTY COMPLEX SAYS THOMAS SHERMAN A TAX PARTNER
IN MINNEAPOLIS WITH ACCOUNTANTS COOPERS & LYBRAND

SIMILARLY OVER THE YEARS TRUSTS MAY HAVE INCURRED MANAGEMENT FEES AND
OTHER EXPENSES THAT WERE NONDEDUCTIBLE FOR LACK OF TRUST INCOME SUCH COSTS
MAY BE DEDUCTIBLE WHEN THE ACCOUNT IS TERMINATED

THE K1 INCOME STATEMENTS TAXPAYERS RECEIVE FROM TRUSTS OR LIMITED
PARTNERSHIPS SHOULD LIST ANY DEDUCTIBLE EXPENSES BUT DON'T BANK ON IT SAYS
MR MUELLER MANY TIMES THE TAX PREPARER WHO HAS SENT OUT THE K1 IS ONE
WHO HAS NO BUSINESS PREPARING THEM HE CAUTIONS TO FIND PARTNERSHIP
DEDUCTIONS LIKE SYNDICATION FEES OR TO CORRECT ERRORS LIKE IMPROPERLY LISTED
TAXABLE INCOME VISIT AN ACCOUNTANT WHO IS FAMILIAR WITH THESE INVESTMENTS
AND KNOWS WHAT DEDUCTIONS TO DIG FOR

OTHER ELUSIVE DEDUCTIONS MAY CUT STATE TAXES ONLY FOR INSTANCE TAXPAYERS
IN NINE STATES INCLUDING HIGHTAXING OREGON AND UTAH CAN DEDUCT SOME OR
ALL OF THEIR FEDERAL TAXES ON THEIR STATE FORM THE OTHER STATES ARE
ALABAMA IOWA LOUISIANA MISSOURI MONTANA NORTH DAKOTA AND OKLAHOMA

TAXPAYERS SHOULD ALSO PAY ATTENTION TO WHAT INCOME IS ACTUALLY TAXABLE IN
THEIR STATE MANY PEOPLE DO THEIR FEDERAL RETURN FIRST AND JUST CARRY OVER
THE NUMBERS SAYS STEPHEN PENNACCHIO A TAX PARTNER WITH KPMG PEAT MARWICK
IN NEW YORK IT COULD COME AS A SURPRISE THEN THAT ALTHOUGH AS MUCH AS 50
OF SOCIAL SECURITY INCOME MAY BE SUBJECT TO FEDERAL TAXES FOR 1993 RETIREES
DON'T HAVE TO PAY TAX ON SOCIAL SECURITY IN MORE THAN HALF THE STATES IN
ADDITION COLORADO HAS A PENSION EXCLUSION THAT CAN MAKE SOME OR ALL OF A
RETIREE'S SOCIAL SECURITY NONTAXABLE

ADDITIONALLY HAWAII ILLINOIS AND PENNSYLVANIA DON'T TAX ANY PENSION INCOME
EVEN THOUGH UNCLE SAM DOES MOST OTHER STATES EXEMPT SOME PORTION OF MANY
RETIREES' PENSION INCOME SUCH EXEMPTIONS CAN ERASE THE STATE TAX BURDEN
ENTIRELY FOR MANY RETIREES SAYS MR PENNACCHIO

DON'T FORGET THAT WHILE INCOME FROM TREASURY SECURITIES IS TAXABLE BY UNCLE
SAM IT GENERALLY ISN'T INCLUDED WHEN FIGURING YOUR INCOME FOR STATE
INCOMETAX PURPOSES AND IF YOUR FEDERAL TAXABLE INCOME INCLUDES A STATE TAX
REFUND THAT YOU RECEIVED IN 1993 YOU CAN SUBTRACT THAT WHEN COMPUTING YOUR
STATE TAXABLE INCOME IN MANY STATES

IF THINGS STILL LOOK GRIM AFTER YOU'VE GONE THROUGH EVERY CANCELED CHECK AND
DONE A LINEBYLINE SEARCH OF YOUR STATE AND FEDERAL TAX RETURNS YOU MAY
STILL BE ABLE TO GENERATE A DEDUCTION FOR YOURSELF BY CREATING AND
CONTRIBUTING TO A RETIREMENT ACCOUNT WHILE 1994 IS TOO LATE FOR TAXPAYERS
TO INCREASE THEIR 401K CONTRIBUTIONS TO CUT THEIR 1993 TAXABLE INCOME THE
SAME ISN'T ALWAYS TRUE FOR CONTRIBUTIONS TO INDIVIDUAL RETIREMENT ACCOUNTS
OR PLANS AVAILABLE TO THOSE WITH SELFEMPLOYMENT INCOME

SOME TAXPAYERS CAN TAKE A 1993 DEDUCTION FOR UP TO 2000 THAT THEY PUT INTO
IRAS EVEN IF THEY ARE JUST GETTING AROUND TO OPENING THE ACCOUNT NOW TO
QUALIFY A PERSON AND HIS OR HER SPOUSE MUST EITHER HAVE NO OTHER QUALIFIED
RETIREMENT PLAN AVAILABLE TO THEM AT WORK OR THEY MUST EARN LESS THAN
40000 AS A COUPLE 25000 IF SINGLE ABOVE THOSE DOLLAR AMOUNTS THE
DEDUCTION DROPS FOR THOSE WITH WORKPLACE RETIREMENT PLANS THE DEDUCTIBLE
AMOUNT PHASES OUT TO ZERO AT 50000 FOR COUPLES 35000 FOR SINGLES

SELFEMPLOYED PEOPLE AND EVEN PEOPLE WITH REGULAR JOBS WHO HAVE QUALIFIED
SELFEMPLOYMENT INCOME SUCH AS DIRECTOR'S FEES IN SOME CASES OR FREELANCE
WRITING INCOME HAVE AN EVEN BETTER OPPORTUNITY THEY HAVE UNTIL APRIL 15
TO SET UP AND CONTRIBUTE TO A SPECIAL RETIREMENT ACCOUNT FOR THE
SELFEMPLOYED KNOWN AS A SIMPLIFIED EMPLOYEE PENSION OR SEP AND THEIR
CONTRIBUTIONS CAN BE AS MUCH AS 130435 OF THEIR SELFEMPLOYMENT EARNINGS
TO A MAXIMUM OF 30000 IF THEY GET AN EXTENSION FROM THE IRS FOR FILING
THEIR TAX RETURN THEY CAN TAKE UNTIL THEIR NEW DEADLINE TO SET UP AND
CONTRIBUTE TO THE ACCOUNT WITH AN IRA THE CONTRIBUTION MUST BE MADE BY
APRIL 15 TO BE DEDUCTIBLE FOR 1993 INCOMETAX PURPOSES

REGARDLESS OF THE TYPE OF SEP YOU USE IF YOU LATER HIRE EMPLOYEES YOU MAY
HAVE TO MAKE CONTRIBUTIONS FOR EACH WORKER IN ORDER TO CONTINUE FUNDING YOUR
OWN SEP ACCOUNT IT MAY BE MORE OF AN OBLIGATION THAN YOU REALIZE
CAUTIONS MR MUELLER

IF BY THE END OF 1993 SELFEMPLOYED PEOPLE HAD ALREADY SET UP ANOTHER TYPE
OF RETIREMENT PLAN FOR THEMSELVES KNOWN AS A KEOGH ACCOUNT THEY HAVE UNTIL
APRIL 15 OR THEIR EXTENDED DEADLINE TO MAKE A DEDUCTIBLE CONTRIBUTION TO IT
YOU CAN CONTRIBUTE UP TO 130435 OF YOUR SELFEMPLOYMENT EARNINGS TO A
KEOGH THE MAXIMUM DEDUCTION

IN SOME CASES YOU CAN CONTRIBUTE UP TO 20 OF YOUR EARNINGS TO RETIREMENT
ACCOUNTS KNOWN AS MONEYPURCHASE PLANS BUT THAT GENERALLY OBLIGATES YOU TO
CONTRIBUTE YEAR AFTER YEAR

IF YOU ARE JUST SETTING UP A KEOGH THIS YEAR HOWEVER ANY CONTRIBUTIONS
WILL REDUCE ONLY YOUR 1994 TAX BILL

NOTE ANY EXPENSES REIMBURSED BY YOUR EMPLOYER ARE GENERALLY NONDEDUCTIBLE
FOR MORE INFORMATION SEE IRS PUBLICATION 529 MISCELLANEOUS DEDUCTIONS
9402230110 940223 LAW LEGAL BEAT TRADE CENTER CASE GOES TO JURY 
CONSPIRACY BECOMES KEY QUESTION  BY MARGARET A JACOBS STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK WHAT DOES IT MEAN TO BE A CONSPIRATOR

MORE THAN ANYTHING ELSE THAT QUESTION HAS SHAPED THE TRIAL OF THE FOUR MEN
ACCUSED IN CONNNECTION WITH THE WORLD TRADE CENTER BOMBING ALTHOUGH
EVIDENCE OF PARTICIPATION VARIES FROM DEFENDANT TO DEFENDANT PROSECUTORS
HAVE LABORED TO SHOW THAT ALL OF THE MEN WERE SUFFICIENTLY IMPLICATED TO
FALL UNDER THE BROAD UMBRELLA OF CONSPIRACY LAW

TODAY FEDERAL JUDGE KEVIN T DUFFY IS EXPECTED TO INSTRUCT THE JURY ON THE
MEANING OF CONSPIRACY AS WELL AS ON THE OTHER LEGAL QUESTIONS AT ISSUE IN
THE 19WEEK TRIAL IF JUDGE DUFFY USES A STANDARD LEGAL DEFINITION OF THE
TERM THE JUDGE IS LIKELY TO ADVISE THE JURORS THAT A DEFENDANT IS GUILTY IF
HE KNOWINGLY AGREED TO PARTICIPATE IN THE PLAN TO DESTROY A BUILDING EVEN
IF HE COMMITTED NO OVERT ACT IN FURTHERANCE OF SUCH A PLAN UNDER THE LAW
ONLY ONE COCONSPIRATOR NEED ACTUALLY TAKE A STEP TO COMMENCE A CONSPIRACY

THE FOUR MEN ARE CHARGED PRIMARILY WITH CONSPIRACY IN THE EXPLOSION THAT
OCCURRED A YEAR AGO THIS SATURDAY THE BLAST WHICH PROSECUTORS HAVE CALLED
THE SINGLE MOST DESTRUCTIVE ACT OF TERRORISM EVER COMMITTED IN THE US
KILLED SIX PEOPLE INJURED MORE THAN 1000 AND RESULTED IN HUNDREDS OF
MILLIONS OF DOLLARS IN PROPERTY DAMAGE TO THE MANHATTAN LANDMARK

AS COURTS HAVE INTERPRETED CONSPIRACY LAW AN AGREEMENT TO CONSPIRE CAN BE
TACIT AND CAN EVEN BE ENTERED INTO BY PEOPLE WHO HAVE NEVER MET EACH OTHER
OR VISITED THE CRIME SITE JUDGES SOMETIMES TELL JURORS THAT THE EVIDENCE
NEEDED TO CONVICT ONE PERSON OF CONSPIRACY NEEDN'T BE AS STRONG AS EVIDENCE
AGAINST THE OTHERS THOSE ARE PRETTY DAMNING INSTRUCTIONS SAYS MARK
POMERANTZ A FORMER PROSECUTOR NOW WITH ROGERS & WELLS IN NEW YORK WHO
BELIEVES THAT THE TRADE CENTER DEFENDANTS ARE IN MORTAL DANGER OF BEING
CONVICTED

BECAUSE COURTS INTERPRET CONSPIRACY SO BROADLY AND BECAUSE IT SWEEPS IN
ALLEGEDLY CENTRAL PLAYERS WITH MORE MARGINAL ONES THE LAW IS CRITICIZED
FREQUENTLY BY CIVIL LIBERTARIANS AND CRIMINAL LAW SCHOLARS BUT THAT IS ALSO
WHY IT IS A FAVORITE TOOL OF PROSECUTORS

A CENTRAL CHARACTERISTIC OF THE TRADE CENTER CASE IS THAT IT HAS DRAWN
TOGETHER CODEFENDANTS AGAINST WHOM THE GOVERNMENT HAS DIFFERENT LEVELS OF
EVIDENCE NO WITNESSES SAW ANY OF THE DEFENDANTS DRIVE THE YELLOW RYDER
RENTAL VAN CONTAINING EXPLOSIVES INTO THE SKYSCRAPER'S BASEMENT LAST FEB
26 BUT IN CLOSING ARGUMENTS TO THE JURY OF EIGHT WOMEN AND FOUR MEN THE
GOVERNMENT WAS ABLE TO TIE TOGETHER RANDOM BITS OF EVIDENCE SO THAT HAZY
CONNECTIONS BETWEEN THE DEFENDANTS APPEARED MUCH CLEARER

TO AN OUTSIDE OBSERVER THE SUMMATION SOUNDED LIKE A PROSECUTOR'S DREAM
CASE THEY WERE ABLE TO EXPLAIN THE CONSPIRACY IN A WAY THAT EVERYTHING
CONNECTED UP SAYS WALTER P LOUGHLIN A FORMER PROSECUTOR NOW WITH THE NEW
YORK LAW FIRM MUDGE ROSE GUTHRIE ALEXANDER & FERDON

TESTIMONY AND FORENSIC EVIDENCE APPEARS STRONGEST AGAINST THREE OF THE
DEFENDANTS EXPERTS SAY IT IS THE MOST FORMIDABLE AGAINST MOHAMMAD A
SALAMEH THE PALESTINIAN IMMIGRANT WHO RENTED THE VAN AND AGAINST NIDAL
AYYAD THE ALLIEDSIGNAL CHEMIST WHO ORDERED CRITICAL CHEMICALS AND ON WHOSE
COMPUTER WAS FOUND A LETTER THREATENING MORE BOMBINGS AND ONLY SLIGHTLY
LESS FORMIDABLE AGAINST MAHMUD ABOUHALIMA WHO WITNESSES PLACE IN THE
APARTMENT WHERE THE BOMB WAS MADE

THE EVIDENCE IS NOT AS STRONG AGAINST AHMAD AJAJ WHO TOOK AN EXPLOSIVES
COURSE AND BROUGHT BOMBMAKING MANUALS INTO THE COUNTRY FROM THE MIDDLE EAST
HE TRAVELED ON THE SAME PLANE AS RAMZI YOUSEF ANOTHER ALLEGED
COCONSPIRATOR WHO HAS SINCE LEFT THE COUNTRY BUT OTHERWISE WASN'T CLEARLY
LINKED BY ANY WITNESSES TO THE OTHER DEFENDANTS

THE WEIGHT OF THE MULTILAYERED EVIDENCE LEFT MR SALAMEH'S ATTORNEY ROBERT
E PRECHT IN THE POSITION OF HAVING TO CONCEDE THE EXISTENCE OF A
CONSPIRACY DURING HIS CLOSING ARGUMENT LAST WEEK HE ARGUED THAT HIS CLIENT
WAS A DUPE WHO SHOULD NOT BE CONVICTED UNDER CONSPIRACY LAWS THE
DEFENDANTS WHO ARE ALSO CHARGED WITH DESTRUCTION OF PROPERTY AND OTHER
CRIMES ALL FACE LIFE IN PRISON WITHOUT THE POSSIBILITY OF PAROLE FOLLOWING
THE SUMMATION MR SALAMEH DISTANCED HIMSELF FROM HIS LAWYER'S ARGUMENT
SAYING IT DID NOT REPRESENT HIS VIEWS OR THE STRATEGY THAT THEY HAD AGREED
UPON

MR LOUGHLIN AND OTHERS CAUTION THAT JURORS IN CONSPIRACY TRIALS HAVE
REACTED FAVORABLY TO DEFENDANTS ON THE FRINGE OF A CRIME WHO ARGUE THAT THE
GOVERNMENT HAS ABUSED THE LAW BY CASTING TOO WIDE A NET WHICH IN ESSENCE IS
WHAT THE TRADE CENTER DEFENDANTS ARE CLAIMING ONE ADVANTAGE FOR DEFENSE
LAWYERS IS THAT THEY DON'T HAVE TO CONVINCE JURORS TO REJECT THE
GOVERNMENT'S OVERALL EVIDENCE OF A CONSPIRACY IN ORDER TO GET AN ACQUITTAL
FOR AN INDIVIDUAL DEFENDANT THEY SIMPLY MUST CONVINCE JURORS TO FIND
REASONABLE DOUBT ABOUT WHETHER THERE IS ENOUGH TO TIE THE PARTICULAR
DEFENDANT TO THE CRIME EXPLAINS MR LOUGHLIN IN A DRUG OR MOB CASE THE
CLASSIC DEFENDANT WHO THIS WORKS FOR IS A ROOMMATE WHO CAN PLAUSIBLY ARGUE
THAT HE SIMPLY ANSWERED THE PHONE

BUT GIVEN THE FACTS OF THE TRADE CENTER CASE THAT MAY BE DIFFICULT
PROSECUTORS ARGUE THAT IT WOULD BE IMPOSSIBLE FOR ANYONE WHO SPENT TIME IN
THE TINY JERSEY CITY NJ APARTMENT WHERE THE BOMB ALLEGEDLY WAS
CONSTRUCTED TO BE UNAWARE OF HOW THE CHEMICALS WOULD BE USED WITNESSES
PLACE MR SALAMEH AND MR ABOUHALIMA THERE ON AN ALMOST NIGHTLY BASIS AND A
STAIN IN THE CEILING DOVETAILS WITH RARE PARTS OF THE TRADE CENTER BOMB

ALTHOUGH MR AYYAD DID NOT SPEND TIME AT THE APARTMENT HE SHARED A BANK
ACCOUNT WITH MR SALAMEH AND SEVERAL WITNESSES SAID HE PURCHASED CHEMICALS
OF THE TYPE LATER DELIVERED TO A STORAGE SHED ALLEGEDLY USED BY THE OTHERS
TWO WITNESSES SAID HE TRIED TO BUY CHEMICALS EVEN AFTER THE BOMBING
IMPLYING THAT ANOTHER ATTACK WAS BEING PLANNED

THE FRINGE DEFENSE MAY WORK MOST EFFECTIVELY FOR MR AJAJ AFTER LANDING IN
THE US WITH THE BOMBMAKING MANUALS HE WAS JAILED THE EVIDENCE TYING HIM
TO THE OTHERS IS INCONCLUSIVE HE CONTENDS HE WAS AN ISLAMIC MILITANT
INVOLVED IN FIGHTING IN AFGHANISTAN WHILE HE CAN BE CONVICTED OF CONSPIRACY
AND THE OTHER CRIMES EVEN THOUGH HE WAS IN JAIL HE CAN BE ACQUITTED IF
JURORS FIND THERE IS REASONABLE DOUBT THAT HE WAS PART OF THE CRIME
9402230109 940223 BUSINESS BRIEF METRICOM INC COMPANY TO SELL 2
STAKE TO MICROSOFT FOR 5 MILLION

METRICOM INC A SMALL BUT INNOVATIVE WIRELESSCOMMUNICATIONS CONCERN SAID
MICROSOFT CORP AGREED TO BUY UP TO A 2 STAKE IN METRICOM FOR ROUGHLY 5
MILLION

METRICOM IN LOS GATOS CALIF SAID MICROSOFT THE SOFTWARE GIANT IN
REDMOND WASH WILL PURCHASE 200000 SHARES OF METRICOM MICROSOFT ALSO
AGREED TO BUY WARRANTS COVERING 75000 SHARES THE PRICE OF THE COMMON
SHARES WILL BE BASED ON THE EVENTUAL PRICE SET FOR METRICOM'S RECENTLY
ANNOUNCED PUBLIC OFFERING OF 22 MILLION SHARES THE EXERCISE PRICE OF THE
WARRANTS IS 3750

METRICOM CLOSED YESTERDAY AT 2750 A SHARE UP 150 OR 58 ON THE NASDAQ
STOCK MARKET METRICOM HAS ABOUT 98 MILLION SHARES OUTSTANDING NOW

MICROSOFT'S INVESTMENT THOUGH SMALL IS A BOOST FOR METRICOM WHICH IS
DEVELOPING HIGHPERFORMANCE WIRELESSNETWORKING TECHNOLOGY THAT IT SAYS IS
MUCH CHEAPER THAN CURRENTLY AVAILABLE SYSTEMS MANY ANALYSTS THINK THE
MARKET FOR SUCH TECHNOLOGY EVENTUALLY COULD BE HUGE 9402230108 940223 IRI
UNIT IN TALKS TO BUY STAKE IN MCDONNELL UNIT

FINMECCANICA SPA THE ITALIAN STATE ENGINEERING GROUP CONFIRMED IT IS
NEGOTIATING FOR A STAKE IN THE COMMERCIALAIRPLANE UNIT OF MCDONNELL DOUGLAS
CORP

FINMECCANICA IS THE PARENT COMPANY OF ALENIA A MAJOR SUPPLIER TO MCDONNELL
DOUGLAS'S DOUGLAS AIRCRAFT CO IN LONG BEACH CALIF MCDONNELL DOUGLAS IS
BASED IN ST LOUIS

PEOPLE FAMILIAR WITH THE US COMPANY'S ACTIONS HAVE REPORTED THAT MCDONNELL
DOUGLAS HAS APPROACHED ALENIA AND SUPPLIERS IN ASIA AND ELSEWHERE ABOUT
BUYING SHARES IN ITS DOUGLAS AIRCRAFT OPERATION

A SPOKESMAN FOR FINMECCANICA'S HOLDING COMPANY STATE CONGLOMERATE ISTITUTO
PER LA RICOSTRUZIONE INDUSTRIALE SPA SAID THAT FINMECCANICA WAS IN TALKS
WITH THE US GROUP BUT DECLINED TO ELABORATE ON ITALIAN PRESS REPORTS THAT
THE COMPANY COULD BUY 10 TO 20 OF DOUGLAS AIRCRAFT CO

THE IRI SPOKESMAN SAID THAT THE PRICE AND SIZE OF THE STAKE TO BE PURCHASED
WERE UNDER DISCUSSION 9402230107 940223 REVIEW & OUTLOOK EDITORIAL 
THE FDIC CLEARS ANOTHER

AS WE REPORTED YESTERDAY THE FEDERAL DEPOSIT INSURANCE CORP DECIDED
WEBSTER HUBBELL HAD NO CONFLICT OF INTEREST REPRESENTING THE GOVERNMENT
SUING AUDITORS OVER THE FAILURE OF MADISON GUARANTY SAVINGS AND LOAN THOUGH
THE ROSE LAW FIRM HAD ITSELF PRESENTED THE SAID AUDIT TO REGULATORS IN
REPRESENTING THE SAID THRIFT NOT TO REST ON ITS LAURELS THE FDIC HAS ALSO
CLEARED HILLARY CLINTON OF CONFLICT IN REPRESENTING THE GOVERNMENT AGAINST
DAN LASATER HER DRUGFELONY FRIEND

MRS CLINTON'S CASE FIRST CAME TO LIGHT IN THE CHICAGO TRIBUNE EARLIER THIS
MONTH IN A STORY THAT RECEIVED LESS ATTENTION THAN IT DESERVED THE TRIBUNE
REPORTED THAT WHILE AT THE ROSE FIRM SHE HAD REPRESENTED FEDERAL REGULATORS
IN A 1980S LAWSUIT AGAINST MR LASATER ARISING OUT OF THE FAILURE OF FIRST
AMERICAN SAVINGS AND LOAN ASSOCIATION OF OAK BROOK ILL

MR LASATER WAS A CLINTON FAMILY FRIEND AND POLITICAL ALLY A ONETIME
ARKANSAS HIGHFLYER LIKE WHITEWATER FIGURE JAMES MCDOUGAL MR LASATER GAVE
A JOB TO MR CLINTON'S HALFBROTHER ROGER HELPED THE YOUNGER CLINTON PAY
OFF DRUG DEBTS AND WAS A BIG CONTRIBUTER TO MR CLINTON'S CAMPAIGNS

AFTER HE WAS ELECTED GOVERNOR MR CLINTON LOBBIED THE ARKANSAS LEGISLATURE
TO LET LASATER & CO HANDLE STATE BOND ISSUES THE DEALS EARNED THE LASATER
COMPANY MILLIONS IN COMMISSIONS ACCORDING TO PUBLISHED REPORTS AS IT
TURNED OUT THOSE CONTRACTS WERE AWARDED TO MR LASATER WHILE HE WAS BEING
INVESTIGATED FOR COCAINE DISTRIBUTION HE WAS CONVICTED AND SENTENCED TO 30
MONTHS IN PRISON IN 1986 HIS BUSINESS AFFAIRS WERE THEN HANDLED BY PATSY
THOMASSON WHO WAS ALSO ONE OF THE THREE WHITE HOUSE AIDES WHO SECRETLY
SEARCHED VINCENT FOSTER'S OFFICE WITHIN HOURS OF HIS DEATH LAST YEAR

FIRST AMERICAN S&L SUED THE LASATER FIRM OVER THE 361000 IT CLAIMS IT LOST
IN UNAUTHORIZED TRADES IN TREASURY BOND FUTURES THE SUIT ORIGINALLY ASKED
FOR 33 MILLION IN DAMAGES AND WAS EVENTUALLY SETTLED FOR 200000 WHEN
THE FEDERAL SAVINGS AND LOAN INSURANCE CORP FSLIC CONTINUED IT AFTER THE
THRIFT'S FAILURE THE SUIT WAS HANDLED BY A CHICAGO LAW FIRM THAT IN TURN
HIRED THE ROSE FIRM WHERE THE CASE HAS HANDLED BY THE LATE VINCENT FOSTER
AND MRS CLINTON

THE FDIC WHICH ABSORBED DUTIES OF THE NOWDEFUNCT FSLIC CONCLUDES THAT ALL
OF THIS IS NO BIG DEAL ALL MRS CLINTON DID IT SUBSEQUENTLY TOLD THE
TRIBUNE WAS TO SIGN AN AMENDED COMPLAINT REDUCING THE DAMAGES SOUGHT TO
13 MILLION FROM THE ORIGINAL 33 MILLION SHE WAS NOT INVOLVED IN THE
FINAL SETTLEMENT FOR 200000 IT SAID AND UNDER CONFLICTOFINTEREST RULES
OF THE TIME HAD NO OBLIGATION TO DISCLOSE THAT SHE AND THE DEFENDANT WERE
PERSONAL FRIENDS FDIC SPOKESMAN ALAN WHITNEY SAID THAT THE FDIC PEOPLE
FOUND THAT MRS CLINTON'S INVOLVEMENT WAS CONFINED TO TWO HOURS REVIEWING
THE AMENDED COMPLAINT THIS WAS NOT EXTENSIVE ENOUGH TO BE A CONFLICT THE
AGENCY DECIDED THOUGH IT DID NOT INTERVIEW MRS CLINTON

WHILE NONE OF THIS LOOKS LIKE A HANGING OFFENSE ED MEESE WOULD NO DOUBT
HAVE BEEN HANGED IF HE'D DONE SOMETHING COMPARABLE IMAGINE THAT AS A
PRIVATE ATTORNEY HE'D REPRESENTED THE GOVERNMENT IN SIGNING PAPERS SLASHING
THE DAMAGE CLAIMS AGAINST E BOB WALLACH AND EVEN IF MR FOSTER RATHER THAN
MRS CLINTON WAS THE LEAD ATTORNEY SOMEHOW THE ROSE FIRM ENDED UP HANDLING
THE CASE AGAINST ANOTHER MEMBER OF THE CLINTON CIRCLE

MUCH OF WHAT'S GOING ON AT THE FDIC OF COURSE IS BUREAUCRATIC
SELFPROTECTION IN THE HUBBELL CASE THE AGENCY'S MEMO LAMENTED THE LACK OF
DEVELOPED PROCEDURES AND THE ENORMOUS INCREASE IN WORKLOAD DUE TO THE
RAPIDLY EXPANDING DUTIES OF THE FDIC SO IN HINDSIGHT DOCUMENTATION
REGARDING THE RETENTION OF THE FIRM IS MORE LIMITED THAN WOULD IDEALLY BE
HOPED FOR THAT IS THE BUREAUCRATS DON'T WANT TO ADMIT THEY MIGHT HAVE
MISSED ONE

THIS BUREAUCRATIC INSTINCT THOUGH CORRESPONDS DIRECTLY WITH THE PERSONAL
INTEREST OF THE FIRST LADY THE ASSOCIATE ATTORNEY GENERAL AND ULTIMATELY
THE PRESIDENT WE VERY MUCH DOUBT THAT HILLARY CLINTON EVER TOOK ARKANSAS
SECURITIES COMMISSIONER BEVERLY BASSETT SCHAFFER ASIDE TO TELL HER TO GO
EASY ON MADISON BUT AFTER THE ROSE FIRM INVOKED THE NAME THE APPROVAL
LETTER CAME BACK ADDRESSED DEAR HILLARY MRS CLINTON'S FRIEND RICKI
TIGERT HAD NOT YET TAKEN THE REINS AT THE FDIC BUT WHEN WE SEE THE AGENCY
GOING OUT OF ITS WAY TO MAKE EXCUSES FOR POWERFUL POLITICAL FIGURES WE
SUSPECT IT'S GOT THE MESSAGE ALREADY 9402230106 940223 BUSINESS BRIEF 
INGERSOLLRAND CO PACT SET WITH GERMAN FIRM FOR ACQUISITION AND
VENTURE

INGERSOLLRAND CO SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE SALES
AND SERVICE ARM OF ECOAIR A SUBSIDIARY OF OBERHAUSEN GERMANYBASED MAN
GUTEHOFFNUNGSHUTTE AG

THE GERMAN COMPANY MAKES AIRENDS A KEY COMPONENT IN INDUSTRIAL AIR
COMPRESSORS

INGERSOLLRAND BASED IN WOODCLIFF LAKE NJ SAID IT ALSO WILL FORM A
5050 JOINT VENTURE WITH MAN GUTEHOFFNUNGSHUTTE TO DEVELOP AND MAKE
ROTARYSCREW AIRENDS THE NEW COMPANY BASED IN OBERHAUSEN WILL MARKET
AIRENDS TO COMPRESSORPACKAGING MANUFACTURERS INCLUDING INGERSOLLRAND
TERMS OF THE AGREEMENT WEREN'T DISCLOSED

INGERSOLLRAND IS A MAKER OF INDUSTRIAL EQUIPMENT BEARINGS DOOR HARDWARE
AND POWER TOOLS WITH ANNUAL REVENUE OF 4 BILLION 9402230105 940223
BROWNINGFERRIS IS BACKED IN NEW YORK TRASH RULING

NEW YORK A STATE COURT JUDGE REMOVING A POTENTIAL ROADBLOCK TO
BROWNINGFERRIS INDUSTRIES INC'S EFFORT TO WIN TRASHHAULING CUSTOMERS
HERE DECLINED TO ISSUE A PRELIMINARY INJUNCTION SOUGHT BY A LOCAL HAULER
WHO LOST CUSTOMERS TO THE NATIONAL WASTEMANAGEMENT CONCERN

DIANE A LEBEDEFF A NEW YORK SUPREME COURT JUSTICE IN A DECISION SIGNED
YESTERDAY DENIED REQUESTS BY AV A CARTING INC A LOCAL HAULER AND TRADE
WASTE ASSOCIATIONS INC A GROUP REPRESENTING LOCAL HAULERS FOR A
PRELIMNARY INJUNCTION AGAINST BROWNINGFERRIS

GERALD WALPIN A LAWYER REPRESENTING THE LOCAL HAULERS' GROUP SAID THAT
DESPITE THE FAILURE TO WIN AN INJUNCTION THE GROUP PLANS TO PROCEED WITH
LITIGATION ALLEGING BROWNINGFERRIS TOOK AWAY CUSTOMERS BY INDUCING THEM TO
BREACH CONTRACTS WITH THEIR HAULER

HOUSTONBASED BROWNINGFERRIS DENIES ANY WRONGDOING AND SAYS IT CONTINUES TO
WIN CUSTOMERS IN NEW YORK BY OFFERING LOWER PRICES THE NEW YORK CITY MARKET
HAS LONG BEEN DOMINATED BY NUMEROUS SMALLER HAULERS SOME HAVING TIES TO
ORGANIZED CRIME 9402230104 940223 BUSINESS BRIEF PETROCORP INC 
FIRM TO REPORT SHARP DROP IN NET FOR FOURTH QUARTER

PETROCORP INC EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME FELL SHARPLY
TO 191000 OR TWO CENTS A SHARE ON REVENUE OF ABOUT 84 MILLION LEALON
L SARGENT CHAIRMAN AND CHIEF EXECUTIVE SAID

THAT FIGURE WOULD COMPARE WITH PROFIT OF 11 MILLION OR 16 CENTS A SHARE
ON REVENUE OF 93 MILLION IN THE 1992 FOURTH QUARTER THE HOUSTON COMPANY
WHICH WENT PUBLIC IN OCTOBER 1993 HAD 82 MILLION SHARES OUTSTANDING IN
1993'S QUARTER COMPARED WITH 67 MILLION IN 1992

MR SARGENT SAID THAT THE NATURAL GAS EXPLORATION AND PRODUCTION COMPANY
PRODUCED THE SAME AMOUNT OF OIL AND GAS IN THE 1993 QUARTER AS IN THE 1992
PERIOD BUT REVENUE FELL BECAUSE OF LOWER PRICES PETROCORP RECEIVED ABOUT
1506 FOR EACH BARREL OF OIL IT SOLD IN THE LATEST QUARTER DOWN FROM
1861 A YEAR EARLIER NATURALGAS PRICES FELL TO ABOUT 180 PER THOUSAND
CUBIC FEET FROM 188 A YEAR EARLIER 9402230103 940223 MANAGING YOUR
CAREER  BY TIMOTHY D SCHELLHARDT

WHEN A HEADHUNTER CALLS WATCH OUT YOU CAN MAKE SOME MAJOR BLUNDERS THAT
MIGHT COST YOU AN IMPORTANT CAREER MOVE

LOOK AT WHAT HAPPENED TO JOHN SCULLEY APPLE COMPUTER'S FORMER CHAIRMAN
EARLIER THIS MONTH HE ABRUPTLY RESIGNED AS CHAIRMAN OF TROUBLED SPECTRUM
INFORMATION TECHNOLOGIES MR SCULLEY CLAIMED HE HADN'T KNOWN ABOUT SOME
ACCOUNTING PROBLEMS AND A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION
BEFORE HE JOINED THE TINY WIRELESSTECHNOLOGY CONCERN IN OCTOBER

THE LESSON INVESTIGATE A COMPANY VERY THOROUGHLY BEFORE YOU ACCEPT A
TEMPTING JOB OFFER CAREER EXPERTS SUGGEST FOR SCULLEY NOT TO HAVE KNOWN
SOME OF THOSE ISSUES BEFORE GOING IN WITH SPECTRUM IS SURPRISING SAYS
TERRY EBERT MANAGING DIRECTOR OF AYERS GROUP AN EXECUTIVE RECRUITING AND
OUTPLACEMENT FIRM IN NEW YORK YET MANY EXECUTIVES CONDUCT MORE RESEARCH ON
STOCK PICKS FOR THEIR PERSONAL PORTFOLIOS THAN THEY DO ABOUT A PROSPECTIVE
EMPLOYER MR EBERT ADDS

IT CAN BE TEMPTING TO TAKE A NEW POSITION WITHOUT CLOSELY ANALYZING THE
COMPANY BEFOREHAND MANAGERS KEEN TO CHANGE JOBS OR FEARFUL OF A LAYOFF
OFTEN DON'T ASK A LOT OF DETAILED QUESTIONS BECAUSE THEY REALLY WANT TO MAKE
THE SWITCH NOTES CARL MENK CHAIRMAN OF NEW YORK RECRUITERS CANNY BOWEN

MR EBERT ADVISES THAT YOU PRACTICE EXTENSIVE DUE DILIGENCE BEFORE
ACCEPTING A JOB OFFER CONDUCT A THOROUGH CHECK OF ARTICLES LEGAL BRIEFS
AND INVESTMENT ANALYSTS' REPORTS ABOUT THE COMPANY

CREDIT BUREAUS CAN BE A GOOD SOURCE OF INFORMATION ABOUT A PRIVATE BUSINESS
INDUSTRY TRADE GROUPS THE ATTORNEY GENERAL IN THE STATE WHERE THE COMPANY
IS BASED AND GOVERNMENT AGENCIES MAY BE ABLE TO TELL YOU ABOUT PENDING
REGULATORY OR DISCIPLINARY ACTIONS IF IT'S A PUBLIC COMPANY EXAMINE ANNUAL
REPORTS FOR THE PAST FIVE YEARS TO UNCOVER OTHER EVIDENCE OF RECURRING
FINANCIAL MANAGEMENT OR LEGAL PROBLEMS FOR EXAMPLE SPECTRUM'S GENERAL
COUNSEL CHRISTOPHER FRANCO MAINTAINS THAT MR SCULLEY COULD HAVE LEARNED
ABOUT THE COMPANY'S ACCOUNTING PROBLEMS BY READING ITS QUARTERLY SEC
FILINGS A SPOKESMAN FOR MR SCULLEY REPLIES HE DID EVERYTHING HE THOUGHT
WAS NECESSARY AT THE TIME IN RETROSPECT HE MIGHT HAVE DONE THINGS
DIFFERENTLY

MR EBERT SUGGESTS THAT YOU ALSO MEET WITH WOULDBE PEERS DURING THE
INTERVIEWING PROCESS TO ASSESS THE COMPANY'S MANAGEMENT STYLE BUSINESS
ETHICS AND MORALE THE CHIEF INFORMATION OFFICER AT A MAJOR INSURANCE
COMPANY DIDN'T DO ENOUGH OF THIS KIND OF HOMEWORK BEFORE HE TOOK THE NO 2
POSITION AT A SMALLER INSURER UNDERGOING A TURNAROUND HE AND THE CHIEF
EXECUTIVE OFFICER SOON CLASHED OVER THEIR MANAGEMENT STYLES WITHIN 18
MONTHS THE NEWCOMER WAS OUT OF THE JOB

IF THE OUSTED EXECUTIVE HAD SIMPLY DONE SOME BACKGROUND CHECKS ON THE CEO
HE WOULD HAVE UNEARTHED THE MISMATCH IN MANAGEMENT STYLES MR EBERT NOTES

EXECUTIVES CAN BLUNDER BY ASSUMING THERE WON'T BE A CAREFUL CHECK OF THEM
MORE COMPANIES ARE DOING A FULLER JOB OF INVESTIGATING JOB CANDIDATES'
CLAIMS OF PRIOR COMPENSATION PRIMARILY BY ASKING FOR INDIVIDUALS' W2
INCOME STATEMENTS RECRUITERS SAY EXECUTIVES OFTEN INFLATE THEIR
COMPENSATION BY 10 TO 20 OR MORE CONTENDERS SOMETIMES EXPLAIN THEY'VE
SIMPLY FIGURED IN THE VALUE OF THEIR PERKS AND BUSINESS TRAVEL

SUCH CREATIVE MATHEMATICS CAN ALTER A HIRING DECISION SOME CLIENTS
DEPENDING ON THE SITUATION WILL SAY THE PERSON IS TERRIFIC AND DECIDE
LET'S GO AHEAD' SAYS KEARNEY'S MR LORD OTHERS WILL SAY THERE'S
ABSOLUTELY NO WAY THEY'LL HIRE THE PERSON

MANY HEADHUNTERS REPORT THEY'RE ALSO SEEING MORE JOB SEEKERS LYING ABOUT
THEIR CREDENTIALS CHRISTOPHER POLSON A MINNEAPOLIS RECRUITER RECENTLY
VERIFIED THE RESUMES OF 11 SEMIFINALISTS FOR A 200000 TOP FINANCIAL POST
AT A MAJOR CONSTRUCTION CONCERN HE FOUND THAT TWO HAD MISREPRESENTED THEIR
COLLEGE BACKGROUNDS ONE MAN CLAIMED AN MBA DEGREE WHEN HE ONLY HAD A
BACHELOR'S THE OTHER CANDIDATE SAID HE HAD AN ACCOUNTING DEGREE WHEN IT WAS
A BUSINESS DEGREE WHAT A STUPID THING TO DO BY PEOPLE OF ACCOMPLISHMENT
HE SAYS NEITHER MAN GOT THE JOB

SOME CANDIDATES ALSO FUDGE BY NOT COMING CLEAN ABOUT A PRIOR DISMISSAL AND
WITH LAIDOFF EXECUTIVES OFTEN GETTING USE OF OFFICES AND SECRETARIES
THROUGH OUTPLACEMENT CONCERNS IT ISN'T EASY FOR HEADHUNTERS TO QUICKLY
DETERMINE WHETHER AN EXECUTIVE IS ACTUALLY UNEMPLOYED THOUGH RISKY SUCH
CONCEALMENT IS UNDERSTANDABLE YOU ENHANCE YOUR CHANCES OF BEING HIRED 
ESPECIALLY FOR MORE MONEY IF YOU ARE WORKING

BUT SAVVY RECRUITERS ALMOST CERTAINLY WILL DISCOVER THE TRUTH ONE WAY IS BY
ASKING WHEN WAS THE LAST DAY YOU WORKED IF YOU OBFUSCATE YOU WILL ONLY
RAISE DOUBTS IN A RECRUITER'S MIND

DON'T PLAY GAMES TELL US ABOUT ANY WARTS YOU HAVE COUNSELS E PENDLETON
JAMES A NEW YORK HEADHUNTER AFTER ALL HE ADDS WHAT IS A WART TO YOU MAY
NOT BE TO ME 9402230102 940223 INSIDE TRACK IBM'S GERSTNER BOUGHT
MORE SHARES IN JANUARY BUT PRICE HAS DROPPED  BY WARREN GETLER 
STAFF REPORTER OF THE WALL STREET JOURNAL

PROBLEM IS THE STOCK OF THE COMPUTER COMPANY HAS DROPPED BACK TO LEVELS
AROUND 53 A SHARE SINCE HIS LATEST PURCHASE YESTERDAY AN ENDORSEMENT BY
CANON INC OF IBM'S POWER PC CHIP FOR USE IN PERSONAL COMPUTERS HELPED LIFT
IBM'S SHARES BY 75 CENTS TO 53375 IN LATE TRADING ON THE NEW YORK STOCK
EXCHANGE

MR GERSTNER'S LATEST VOTE OF CONFIDENCE IN THE STOCK FOLLOWS SIX OTHER
SEPARATE BUYS BY THE CHAIRMAN SINCE HE JOINED IBM IN APRIL 1993 BRINGING
HIS TOTAL OPEN MARKET PURCHASES TO 30000 SHARES FOR SOME 143 MILLION
RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW

THESE PURCHASES COME DESPITE ANALYSTS' PERSISTENT CONCERNS ABOUT FLAGGING
REVENUE FROM THE COMPANY'S CORE MAINFRAME BUSINESS AND ABOUT RELATED
WEAKNESS IN THE GROUP'S SOFTWARE OPERATIONS

THE IBM EXECUTIVE DECLINED TO COMMENT ABOUT HIS STOCK PURCHASES

THIS GOES WAY BEYOND TOKEN PURCHASES SAID BOB GABELE PRESIDENT OF
CDA/INVESTNET A FT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER ACTIVITY

HE SEEMS TO BELIEVE THE FUNDAMENTALS ARE THERE TO JUSTIFY A HIGHER STOCK
PRICE MR GABELE ADDED HIS BUYS ARE A CLASSIC AVERAGINGUP' CASE WHERE
INSIDERS MAKE SIGNIFICANT COMMITMENTS AT SUCCESSIVELY HIGHER PRICES

AND HE POINTS OUT MR GERSTNER DOESN'T SEEM DAUNTED BY MILD PRICE SETBACKS
AFTER HIS PURCHASES HE HAS USED THEM AS BUYING OPPORTUNITIES

MR GERSTNER'S EARLIER PURCHASES OF IBM STOCK SINCE HIS ARRIVAL FROM RJR
NABISCO HOLDINGS CORP INCLUDE A 1000SHARE ACQUISITION ON APRIL 23 AT AN
AVERAGE 4819 A SHARE A 500SHARE BUY AT 4875 ON APRIL 28 A 1000SHARE
BUY AT 4913 ON MAY 3 A 15000SHARE GRAB ON AUG 2 AT AN AVERAGE 4475
A 2500SHARE BUY ON A FURTHER DIP IN THE STOCK'S PRICE AT 4188 ON AUG
12 AND A 5000 SHARE PURCHASE FOR 50 A SHARE ON NOV 10 SEC DATA SHOW

A HANDFUL OF OTHER IBM EXECUTIVES AND DIRECTORS HAVE BEEN NIBBLING AT THE
COMPANY'S SHARES BUT FAR LESS AGGRESSIVELY CHIEF FINANCIAL OFFICER JEROME
YORK BOUGHT 5000 SHARES AT 4950 A PIECE ON NOV 9 FOLLOWING A PURCHASE
OF 7500 SHARES AT AN AVERAGE 4213 IN EARLY AUGUST VICE PRESIDENTS ROBELI
LIBERO AND GERALD CZARNECKI PICKED UP 1000 SHARES AND 5000 SHARES
RESPECTIVELY AT 42 A SHARE EACH ON SEPT 23

MERRILL LYNCH ANALYST DANIEL MANDRESH SAYS THAT THE COMPANY'S SHIFT IN ITS
PRODUCT MIX FROM MAINFRAMES TOWARD PERSONAL COMPUTERS HAS CAUSED SHARP
SWINGS IN PROFITABILITY OF LATE BUT THAT THE TREND FOR THE COMPANY'S BOTTOM
LINE AND ITS SHARE PRICE WILL BE UPWARD

WE CAN ASSUME THAT THE DECLINE IN LARGESYSTEMS PROFITABILITY HAS
ESSENTIALLY BEEN NEUTRALIZED BY THE COMPANY'S REDUCTION IN CAPACITY AND
OPERATING EXPENSES HE SAID WE MAY BE AT A POINT WHERE ACCOMPLISHMENT IN
PCS AND WORKSTATIONS CAN NOW SHOW UP IN THE BOTTOM LINE 9402230101
940223 MARKETING BRIEF IWERKS ENTERTAINMENT INC ACCORD REACHED TO
ACQUIRE OMNI FILMS INTERNATIONAL

IWERKS ENTERTAINMENT INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE
OMNI FILMS INTERNATIONAL INC A SARASOTA FLA SIMULATIONTHEATER COMPANY
FOR ABOUT 34 MILLION IN CASH AND STOCK

THE PLAN WILL COMBINE TWO RIVALS IN THE BURGEONING BUSINESS OF DESIGNING
HIGHTECH ENTERTAINMENT RIDES FOR THEME PARKS SHOPPING MALLS AND OTHER
VENUES UNDER THE AGREEMENT OMNI STOCKHOLDERS WILL RECEIVE 142 AND 03744
SHARES OF NEW IWERKS COMMON STOCK FOR EACH OMNI SHARE HELD OR A TOTAL OF
ABOUT 45 MILLION IN CASH AND 12 MILLION NEW IWERKS COMMON SHARES IWERKS
IS BASED IN BURBANK CALIF

AFTER THE COMPLETION OF THE SALE SCHEDULED FOR MAY OMNI SHAREHOLDERS WILL
HOLD AN 11 STAKE IN IWERKS HOLDERS OF ABOUT 37 OF OMNI'S SHARES
OUTSTANDING HAVE GRANTED IWERKS A PROXY TO VOTE THEIR SHARES IN FAVOR OF THE
TRANSACTION

IWERKS STOCK CLOSED UNCHANGED AT 2425 A SHARE IN NASDAQ STOCK MARKET
TRADING YESTERDAY 9402230100 940223 SHORT INTEREST ON BIG BOARD HITS
NEW HIGH  TOTAL ROSE 37 IN MONTH RJR NABISCO'S FIGURE AGAIN IS
HIGHEST ON LIST  BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET
JOURNAL

NEW YORK SHORT INTEREST CONTINUED TO CLIMB TO RECORD LEVELS ON THE NEW
YORK STOCK EXCHANGE RISING 37 TO 132 BILLION SHARES IN MIDFEBRUARY

BIG BOARD SHORT INTEREST TOTALED 1323065502 SHARES UP FROM 1275614471
A MONTH EARLIER

SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 35 TO A RECORD
104891875 SHARES FROM THE 101363116 ADJUSTED SHARES REPORTED IN
MIDJANUARY

SOME ANALYSTS SUGGEST THAT THE RECORD LEVELS OF SHORT INTEREST ON THE BIG
BOARD IN RECENT MONTHS PARTLY REFLECT A STRING OF CORPORATE TAKEOVERS THAT
PROVIDE OPPORTUNITIES FOR ARBITRAGE

RJR NABISCO HOLDINGS CORP'S SHORT INTEREST POSITION STAYED AT THE TOP
INCREASING 17 MILLION SHARES TO 292 MILLION SHARES POSSIBLY REFLECTING
HIGH ARBITRAGE LEVELS IN THE COMPANY'S STOCK THE SHORT INTEREST POSITION OF
COLUMBIA HEALTHCARE CORP DECLINED BY 46 MILLION SHARES TO 177 MILLION
SHARES AFTER REGISTERING A LARGE JUMP A MONTH AGO RELATED TO ITS
THENPENDING ACQUISITION OF HCA HOSPITAL CORP OF AMERICA THAT ACQUISITION
WAS COMPLETED FEB 10 THE DECREASE IN THE SHORT INTEREST LEVEL POSSIBLY
REFLECTS SHORT SELLERS' MOVES TO COVER THEIR POSITIONS

TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT
THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER
AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF
SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS

HARRY STRUNK AN INVESTMENT ADVISER WHO TRACKS SHORT INTEREST IN PALM BEACH
FLA SAID THAT SHORT SELLERS HAD A TOUGH TIME IN JANUARY WHEN THE STOCK
MARKET SOARED TO NEW HIGHS RISING STOCK PRICES HE NOTED MAKE IT MORE
EXPENSIVE FOR SHORT SELLERS TO BUY BACK SHARES IN THE MARKET HOWEVER THE
DECISION BY THE FEDERAL RESERVE BOARD TO RAISE THE FEDERAL FUNDS RATE A
QUARTER OF A PERCENTAGE POINT IN EARLY FEBRUARY WAS BENEFICIAL TO SHORT
SELLERS A HIGHER INTEREST RATE PROMPTS MONEY TO MIGRATE FROM THE STOCK
MARKET TO OTHER SECURITIES SUCH AS TREASURY BILLS AND BONDS AS A RESULT
SOME STOCK PRICES FALL WHICH MAKES IT EASIER FOR SHORT SELLERS TO BUY BACK
SHARES AND COVER THEIR POSITIONS

THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST
RATIO FELL TO 424 FROM 460 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE
EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT
THE TOTAL SHORT INTEREST POSITION

AVERAGE DAILY BIG BOARD VOLUME WAS 3119 MILLION SHARES

BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH
INCLUDING THE 22 TRADING DAYS THROUGH FEB 8 WITH FEB 15 AS THE SETTLEMENT
DATE

THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT
INTEREST POSITION OF AT LEAST 250000 SHARES EXISTED AT MIDFEBRUARY OR IN
WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE
MIDJANUARY SEE ACCOMPANYING CHARTS WSJ FEB 23 1994 9402230098
940223 SHORT INTEREST HIGHLIGHTS NYSE ISSUES

THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE
SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE
MONTH 9402230097 940223 BUSINESS BRIEF PERKINELMER CORP SALE OF
METCO UNIT TO FIRM IN SWITZERLAND IS PLANNED

PERKINELMER CORP SAID IT SIGNED A LETTER OF INTENT FOR THE SALE OF ITS
METCO SURFACE TECHNOLOGY DIVISION TO SULZER LTD OF SWITZERLAND TERMS
WEREN'T DISCLOSED

METCO WHICH EMPLOYS ABOUT 585 PEOPLE HAS ANNUAL SALES OF SLIGHTLY MORE
THAN 100 MILLION THE TRANSACTION REQUIRES REGULATORY CLEARANCE

METCO MAKES THERMALSPRAY MATERIALS AND EQUIPMENT FOR COATING
HIGHPERFORMANCE MACHINE PARTS FOR THE AIRCRAFT AUTOMOBILE AND OTHER
INDUSTRIES PERKINELMER BASED IN NORWALK CONN SAID THE SALE IS ONE OF
THE FINAL STEPS IN ITS PLAN TO TRANSFORM ITSELF FROM A HIGHTECHNOLOGY
CONGLOMERATE TO A FOCUSED ANALYTICAL AND BIOTECHNOLOGY INSTRUMENTATION
COMPANY SULZER'S BUSINESSES INCLUDE MEDICAL IMPLANTS WEAVING MACHINERY
AND BUILDING SERVICES 9402230096 940223 INTERNATIONAL EU AIDE BACKS 
TIGHTER REGULATION OF US MOVIE FIRM  BY CHARLES GOLDSMITH 
STAFF REPORTER OF THE WALL STREET JOURNAL

BRUSSELS IN A CASE THAT COULD REVIVE TRANSATLANTIC TENSIONS OVER THE
FILM INDUSTRY THE EUROPEAN UNION'S CULTURE COMMISSIONER SAID HE WILL OPPOSE
EXTENSION OF AN EU ANTITRUST EXEMPTION GRANTED TO US FILM DISTRIBUTOR
UNITED INTERNATIONAL PICTURES

UNITED INTERNATIONAL A JOINTLY OWNED SUBSIDIARY OF THE US FILM STUDIOS
PARAMOUNT COMMUNICATIONS INC THE UNIVERSAL PICTURES UNIT OF MATSUSHITA
ELECTRIC INDUSTRIAL CO'S MCA INC AND METROGOLDWYNMAYER INC REACTED
ANGRILY TO THE REMARKS BY JOAO DE DEUS PINHEIRO THE EU CULTURE
COMMISSIONER IN LONDON UNITED INTERNATIONAL SENIOR VICE PRESIDENT BRIAN
REILLY SAID THE COMMISSIONER'S COMMENTS WERE BASED ON NUMEROUS GROSS
DISTORTIONS OF FACT AND REFLECT AN UNFORTUNATE VESTIGE OF THE
EMOTIONALISM OF LAST YEAR'S WORLD TRADE TALKS

THE FILM DISTRIBUTION COMPANY WAS EXEMPTED FROM KEY PROVISIONS OF EU
COMPETITION LAW IN 1988 AND SEEKS A FIVEYEAR RENEWAL THE EXEMPTION
EXPIRED IN JULY BUT UNITED INTERNATIONAL ENJOYS DE FACTO PROTECTION PENDING
THE COMMISSION'S RENEWAL DECISION

UNDER EU LAW AGREEMENTS THAT RESTRICT OR DISTORT COMPETITION ARE GENERALLY
NOT ALLOWED BUT THE COMMISSION CAN GRANT EXEMPTIONS FOR AGREEMENTS THAT
CONTRIBUTE TO THE PRODUCTION OR DISTRIBUTION OF GOODS WHILE ALLOWING
CONSUMERS A FAIR SHARE OF THE RESULTING BENEFITS THE KEY ISSUE IN THE
UNITED INTERNATIONAL CASE IS WHETHER THE EXEMPTION IS PROVIDING SUCH
BENEFITS TO EU MOVIEGOERS IN TERMS OF GREATER SELECTION AND LOWER COSTS

EUROCINEMA A LOBBYING GROUP FOR EUROPEAN FILMMAKERS HAS STRONGLY OPPOSED
EXTENSION OF THE UNITED INTERNATIONAL EXEMPTION THE GROUP ARGUES THAT THE
EXEMPTION HAS CONTRIBUTED TO THE DOMINATION OF EUROPEAN MOVIE SCREENS BY
HOLLYWOOD BLOCKBUSTERS AND HAS IN FACT RESTRICTED THE CHOICE AVAILABLE IN
EUROPE UNITED INTERNATIONAL DISPUTES SUCH CLAIMS ARGUING THAT THE
COMMISSION GRANTED ITS EXEMPTION AFTER A SEVENYEAR EXAMINATION FOUND
SIGNIFICANT BENEFITS TO THE PUBLIC

I WOULD SAY FLATLY NO TO EXTENDING THE EXEMPTION MR PINHEIRO TOLD A
GROUP OF JOURNALISTS THE COMMISSIONER SAID THAT UNITED INTERNATIONAL HAD
NOT YET ASKED FOR RENEWAL OF THE EXEMPTION A STATEMENT THAT ASTONISHED
UNITED INTERNATIONAL OFFICIALS THEY SAID THE RENEWAL REQUEST WAS FILED IN
JUNE AND HAS FOR MONTHS BEEN THE SUBJECT OF HIGHLEVEL DISCUSSIONS AT THE
COMMISSION

MR PINHEIRO SAID UNITED INTERNATIONAL CONTROLS 80 OF US FILM
DISTRIBUTION IN THE EU A FIGURE DESCRIBED BY UNITED INTERNATIONAL AS
COMPLETELY INCORRECT BECAUSE OF THE STIFF COMPETITION FROM TIME WARNER
INC WALT DISNEY CO AND OTHER COMPANIES IN 1992 THE LAST YEAR FOR WHICH
FULL FIGURES ARE AVAILABLE THE COMPANY SAID ITS AVERAGE OVERALL EU MARKET
SHARE WAS 18

THE EUROPEAN PARLIAMENT CALLED LAST NOVEMBER FOR THE UNITED INTERNATIONAL
EXEMPTION NOT TO BE RENEWED SAYING IT HAD LED TO THE DEMISE OF SOME
EUROPEAN DISTRIBUTORS IN A STATEMENT UNITED INTERNATIONAL RESPONDED THAT
THE STRASBOURGBASED ASSEMBLY SOUGHT TO ATTRIBUTE UNWARRANTED
RESPONSIBILITY TO UNITED INTERNATIONAL FOR THE DIFFICULTIES EXPERIENCED BY
CERTAIN ELEMENTS OF THE INDUSTRY

A DECISION ON RENEWING UNITED INTERNATIONAL'S ANTITRUST EXEMPTION WILL BE
TAKEN BY A MAJORITY OF THE 17 EU COMMISSIONERS UNDER THE PRIMARY
RESPONSIBILITY OF THE COMPETITION COMMISSIONER KAREL VAN MIERT
9402230095 940211 CLINTON'S FRAUDULENT TRADE POLICY  BY JAMES
BOVARD

TODAY AT 2 PM AT THE WHITE HOUSE PRESIDENT CLINTON AND JAPANESE PRIME
MINISTER MORIHIRO HOSOKAWA ARE SCHEDULED TO HOLD A NEWS CONFERENCE ON
USJAPAN TRADE DISPUTES MR CLINTON MAY ATTEMPT TO USE THIS NEWS
CONFERENCE AS HE USED ONE LAST APRIL TO BROWBEAT A JAPANESE LEADER OVER
JAPAN'S ALLEGED UNFAIR TRADE PRACTICES

UNFORTUNATELY MR CLINTON'S TRADE POLICY APPEARS TO BE INCREASINGLY
DOMINATED BY BOTH A CONTEMPT FOR AMERICAN CONSUMERS AND A DISREGARD FOR
ACCURATELY REPRESENTING THE ACTIONS OF FOREIGN NATIONS AN EXAMINATION OF
LAST MONTH'S USCHINESE CONFLICT OVER TEXTILE IMPORTS SHEDS LIGHT ON THE
VALUES DRIVING THE US POSITION IN ITS DISPUTE WITH JAPAN

ON JAN 17 CLINTON ADMINISTRATION TRADE OFFICIALS PROUDLY ANNOUNCED A
SETTLEMENT WITH CHINA OVER ALLEGED TEXTILE TRANSSHIPMENTS THE US HAD
ACCUSED CHINA OF ILLEGALLY TRANSSHIPPING 2 BILLION OF CLOTHING AND TEXTILE
PRODUCTS A YEAR INTO THE US MARKET WHILE THE US PORTRAYED THE
SETTLEMENT AS A VICTORY FOR AMERICA THE DEAL WAS ACTUALLY A STUNNING DEFEAT
FOR US CONSUMERS AND REVEALED HOW THE CLINTON ADMINISTRATION GROSSLY
ABUSES TRADE STATISTICS A MAJOR STICKING POINT IN THE CURRENT DISPUTE WITH
JAPAN

US TRADE REPRESENTATIVE MICKEY KANTOR DECLARED THAT THE AGREEMENT WILL
RESULT IN 700 MILLION FEWER TEXTILE AND APPAREL IMPORTS FROM CHINA BETWEEN
NOW AND 1996 THAN WOULD HAVE BEEN PERMITTED UNDER A PREVIOUS AGREEMENT AT
THE SAME TIME HE ASSURED THE MEDIA THAT THE RESTRICTIONS WOULD NOT HAVE A
SIGNIFICANT OR ADVERSE IMPACT ON US CONSUMERS YET ACCORDING TO THE
ARCANE METHODS USED TO MEASURE TEXTILE TRADE THE NEW AGREEMENT WILL RESULT
IN THE EQUIVALENT OF MORE THAN ONE BILLION FEWER BRAS OR 475 MILLION FEWER
PAIRS OF UNDERWEAR EXPORTED FROM CHINA TO THE US

SILK CLOTHING MAY BE THE FASTEST GROWING SEGMENT OF THE AMERICAN CLOTHING
BUSINESS IN RECENT YEARS CHINA SUPPLIES 95 OF THE SILK CLOTHING SOLD IN
THE US SILK EXPORTS FROM CHINA TO THE US HAVE INCREASED FROM 900
MILLION IN 1991 TO 26 BILLION IN 1993 UNDER THE NEW AGREEMENT THE RATE
OF INCREASE IN SILK CLOTHING IMPORTS WILL BE SLASHED FROM 100 A YEAR TO
ONLY 1 SINCE THE DEMAND FOR AFFORDABLE SILK CLOTHING IS SURGING THE
RESTRICTIONS WILL LIKELY RESULT IN A SPIKE IN THE PRICE OF SOME TYPES OF
SILK CLOTHING JULIE HUGHES OF ASSOCIATED MERCHANDISING CORP OBSERVED
PEOPLE BETTER GO OUT AND BUY THEIR SILK UNDERWEAR SOON BECAUSE ONCE THERE
ARE QUOTAS IT WILL BE TOO EXPENSIVE

FOR THE FIRST TIME IN HISTORY SILK CLOTHING HAS BECOME AFFORDABLE TO
WORKINGCLASS AND MIDDLECLASS AMERICANS IT HAS RECENTLY APPEARED IN SUCH
MASS MARKET OUTLETS AS JC PENNEY ACCORDING TO ONE TEXTILE TRADE EXPERT
THIS IS A GREAT EXAMPLE OF A TRIUMPH OF COMMERCE BRINGING DOWN A ONETIME
SYMBOL OF ELITISM IF NOT SNOBBERY BUT IT MAY BE SHORTLIVED MR CLINTON'S
CONTROLS ON SILK IMPORTS WILL LIKELY LEAD CHINA TO CURTAIL EXPORTS OF THE
LOWEST VALUE SILK GARMENTS FIRST AS USUALLY HAPPENS WHEN IMPORT QUOTAS ARE
IMPOSED

CLINTON ADMINISTRATION POLICY MAKERS FEARED THAT THE SALE OF SILK BLOUSES
WAS UNDERCUTTING THAT OF AMERICANMADE COTTON AND POLYESTER BLOUSES YET NO
ANALYSIS WAS MADE PUBLIC ACTUALLY SHOWING THAT IMPORTED SILK CLOTHING IS
ADVERSELY IMPACTING THE PRICE OF AMERICANMADE NONSILK CLOTHING INSTEAD
THE NEW QUOTAS ARE SIMPLY PART OF THE CONTINUING US TRADE POLICY OF
VIEWING ANY AND ALL CLOTHING IMPORTS AS ENEMIES OF NATIONAL PROSPERITY

THE TEXTILE AGREEMENT CAME AT A TIME WHEN THE EVIDENCE THE US TRADE
REPRESENTATIVE OFFERED TO PROVE CHINA'S GUILT IN THE TRANSSHIPMENT DISPUTE
IS LOOKING MORE AND MORE ABSURD MR KANTOR ANNOUNCED ON JAN 6 THAT CHINA
WAS GUILTY OF ILLEGALLY TRANSSHIPPING 625 MILLION KILOGRAMS OF SHOP TOWELS
THROUGH HONDURAS TO THE US HE REPEATEDLY USED THE 625 MILLION FIGURE AS
IT WAS BY FAR THE MOST EGREGIOUS OF THE FOUR EXAMPLES THE US OFFERED OF
PERVASIVE CHINESE TRADE CHEATING

YET ACCORDING TO THE US CUSTOMS SERVICE AND COMMERCE DEPARTMENT CHINA
HAS BEEN PENALIZED IN THE PAST FIVE YEARS FOR TRANSSHIPPING ONLY ABOUT
626000 KILOGRAMS OF SHOP TOWELS DIANA WILDMAN A SPOKESWOMAN FOR THE US
TRADE REPRESENTATIVE CONCEDED ON JAN 19 THAT MR KANTOR HAD BEEN GIVEN THE
WRONG NUMBER PERHAPS MR KANTOR'S THOUSANDFOLD ERROR AND THE NONCHALANT
ATTITUDE OF US TRADE OFFICIALS ABOUT HIS MISTAKE REVEALS THE CLINTON
ADMINISTRATION'S DEFINITION OF CLOSE ENOUGH FOR GOVERNMENT WORK

THE ABSURDITY OF THE 625 MILLION KILOGRAM ACCUSATION WOULD HAVE BEEN CLEAR
IF ANY OF THE US GOVERNMENT TRADE EXPERTS HAD CHECKED SOME OF THE ENDLESS
REPORTS THAT THE GOVERNMENT ISSUES ON TEXTILE IMPORTS TOTAL US IMPORTS OF
SHOP TOWELS FROM ALL NATIONS ARE LESS THAN SIX MILLION KILOGRAMS MOREOVER
THE 625 MILLION KILOGRAM FIGURE WORKS OUT TO ROUGHLY 19 BILLION SHOP TOWELS
YET THE AVERAGE US CONSUMPTION OF SHOP TOWELS IS LESS THAN 400 MILLION A
YEAR THUS ACCORDING TO MR KANTOR THE CHINESE CLANDESTINELY SHIPPED
ENOUGH TOWELS TO SATISFY US CONSUMPTION FOR ALMOST THE NEXT HALF CENTURY

THIS MONTH THE CLINTON ADMINISTRATION APPEARS OBSESSED WITH FORCING JAPAN
TO AGREE TO A COMPULSIVE AFFIRMATIVE ACTION PROGRAM FOR AMERICAN EXPORTS 
WITH JAPAN PROMISING THAT SPECIFIC AMOUNTS OF SPECIFIC US PRODUCTS WILL BE
BOUGHT IN JAPAN DEPUTY TREASURY SECRETARY ROGER ALTMAN DECLARED WEDNESDAY
WHAT WE WILL WAIT FOR UNTIL HELL FREEZES OVER IS AN AGREEMENT THAT THERE
WILL BE MEASUREMENTS YET LAST JULY AT A SPEECH AT TOKYO UNIVERSITY MR
CLINTON DECLARED THAT THE US IS NOT SEEKING SOCALLED TRADE BY THE
NUMBERS WITH SUCH CONTRADICTIONS THE JAPANESE ARE NATURALLY WARY OF
SIGNING ANY AGREEMENT THAT COULD LATER BE DISTORTED THEREBY SOWING THE
SEEDS OF EVEN GREATER TRADE CONFLICTS

WHY SHOULD THE JAPANESE BELIEVE THAT US TRADE OFFICIALS' NUMBERS AND
ASSERTIONS ON USJAPAN TRADE ARE ANY MORE TRUSTWORTHY THAN WERE THEIR
ASSERTIONS LAST MONTH ON USCHINESE TRADE

THE CLINTON ADMINISTRATION SEEMS UNLIKELY TO CURB ITS MORAL
SELFRIGHTEOUSNESS AND PROTECTIONIST DEMANDS IN TRADE DISPUTES WITH ASIAN
NATIONS BUT IF THE GOVERNMENT CANNOT GET ITS NUMBERS STRAIGHT CAN WE AT
LEAST HOPE THAT IT WILL AVOID DRAGGING AMERICAN CONSUMERS AND WORLD TRADE
DOWN WITH ITS MISTAKES

MR BOVARD WRITES OFTEN ON TRADE POLICY SEE RELATED LETTER WHERE BILL
DIDN'T SPEAK WSJ FEB 23 1994 9402110012 YY94 MM02 9402230094
940223 BUSINESS BRIEF ENERGY BIOSYSTEMS CORP PACT SET WITH DRESSER
UNIT IN DESULFURIZING CRUDE OIL

ENERGY BIOSYSTEMS CORP THE WOODLANDS TEXAS SAID IT WILL COLLABORATE WITH
A UNIT OF DALLASBASED DRESSER INDUSTRIES INC IN DEVELOPING AND
COMMERCIALIZING ITS TECHNOLOGY FOR REMOVING SULFUR FROM CRUDE OIL

ENERGY BIOSYSTEMS WHICH DEVELOPS BIOTECHNOLOGYBASED PROCESSES FOR THE
REFINING AND OILPRODUCTION INDUSTRIES SAID DRESSER'S MW KELLOGG CO
AGREED TO PROVIDE ENGINEERING SERVICES FOR COMMERCIAL DEVELOPMENT OF
DESULFURIZATION

INITIAL TERMS OF THE AGREEMENT COVER 20 DESULFURIZATION UNITS WHICH ENERGY
BIOSYSTEMS ESTIMATES WILL GENERATE AS MUCH AS 40 MILLION IN SITE LICENSE
FEES

H DAVID SLOAN SENIOR PRODUCT TECHNOLOGY CONSULTANT FOR REFINING AT MW
KELLOGG SAID THE ENERGY BIOSYSTEMS METHOD POTENTIALLY IS BREAKTHROUGH
TECHNOLOGY FOR THE OIL INDUSTRY PROVIDING MORE EFFECTIVE DESULFURIZATION AT
SUBSTANTIALLY LOWER COSTS

ENERGY BIOSYSTEMS' PROCESS USES ENZYMES TO REMOVE SULFUR FROM CRUDE OIL
9402230093 940223 BUSINESS BRIEF WALMART STORES INC FOURTHPERIOD
PROFIT SURGED 16 ON 19 REVENUE CLIMB

DISCOUNTRETAILING GIANT WALMART STORES INC EXTENDING ITS STREAK OF RAPID
GROWTH SAID ITS PROFIT SURGED 16 IN ITS FISCAL FOURTH QUARTER ON A 19
REVENUE GAIN

NET INCOME IN THE PERIOD WHICH ENDED JAN 31 TOTALED 868 MILLION OR 38
CENTS A SHARE UP FROM 7496 MILLION OR 33 CENTS A SHARE THE YEAR
EARLIER REVENUE ROSE TO 2054 BILLION FROM 1727 BILLION

RESULTS OF THE BENTONVILLE ARK COMPANY GENERALLY WERE IN LINE WITH THE
EXPECTATIONS OF ANALYSTS MANY OF WHOM PREDICT WALMART WILL CONTINUE ITS
IMPRESSIVE GROWTH YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING
WALMART'S STOCK PRICE ROSE 50 CENTS TO CLOSE AT 2825

FOR ALL OF FISCAL 1994 WALMART'S PROFIT ROSE 17 TO 233 BILLION OR
102 A SHARE FROM 199 BILLION OR 87 CENTS A SHARE A YEAR EARLIER
REVENUE INCREASED 21 TO 6799 BILLION FROM 5598 BILLION 9402230092
940223 BUSINESS BRIEF WASHINGTON ENERGY CO SHAREHOLDERS FILE LAWSUIT
 NET FELL 39 IN 4TH QUARTER

WASHINGTON ENERGY CO SAID HOLDERS SUED IT IN FEDERAL COURT IN SEATTLE
CHARGING IT WITH MISLEADING INVESTORS THE COMPANY ALSO SAID FOURTHQUARTER
EARNINGS FELL 39

LAST YEAR STATE REGULATORS ORDERED THE COMPANY TO CUT ELECTRICITY RATES 5
OR 154 MILLION SEVERAL MONTHS AFTER THE COMPANY FILED FOR AN INCREASE

WASHINGTON ENERGY STOCK WHICH TRADED AS HIGH AS 26 A SHARE LAST YEAR HAS
SLIPPED SINCE CLOSING YESTERDAY AT 1775 UP 125 CENTS IN COMPOSITE NEW
YORK STOCK EXCHANGE TRADING

WASHINGTON ENERGY SAID THE SUIT ALLEGES IT DIDN'T PROPERLY DISCLOSE THE
POTENTIAL RISK ASSOCIATED WITH ITS RATE REQUEST PLAINTIFFS AND THEIR
ATTORNEYS COULDN'T BE REACHED TO COMMENT THE COMPANY SAID IT STRONGLY
DENIES VIOLATING ANY LAWS

FOURTHQUARTER NET FELL TO 83 MILLION OR 33 CENTS A SHARE FROM
YEAREARLIER NET OF 136 MILLION OR 60 CENTS A SHARE 9402230090 940223
MONEY RATES

THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL
LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS

PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF
THE NATION'S 30 LARGEST BANKS

FEDERAL FUNDS 3 3/8 HIGH 3 1/4 LOW 3 1/4 NEAR CLOSING BID 3 3/8
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 59 DAYS 342 60 TO 89 DAYS 347 90 TO 119 DAYS 350 120 TO 149
DAYS 355 150 TO 179 DAYS 360 180 TO 239 DAYS 370 240 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 345 30 DAYS 352 60 DAYS 357 90 DAYS

CERTIFICATES OF DEPOSIT 275 ONE MONTH 279 TWO MONTHS 286 THREE
MONTHS 307 SIX MONTHS 341 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 337 ONE MONTH 351 THREE MONTHS 370 SIX MONTHS

BANKERS ACCEPTANCES 335 30 DAYS 342 60 DAYS 345 90 DAYS 351 120
DAYS 358 150 DAYS 363 180 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 3/4
 3 5/8 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 13/16 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 725 60 DAYS 731 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 719 60
DAYS 728 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 535 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC

MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9402230089 940223 BUSINESS BRIEF LEWIS GALOOB TOYS INC FIRM SAYS
COURT UPHOLDS AWARD WON FROM NINTENDO

LEWIS GALOOB TOYS INC SAID A FEDERAL APPEALS COURT UPHELD A 15 MILLION
AWARD GRANTED IT IN ITS LEGAL BATTLE AGAINST NINTENDO OF AMERICA INC

AS REPORTED IN JULY 1992 A LOWER FEDERAL COURT HAD AWARDED LEWIS GALOOB THE
15 MILLION THE AMOUNT REPRESENTED PROFIT LOST BY THE SOUTH SAN FRANCISCO
CALIF TOY MAKER BETWEEN JUNE 1990 AND JULY 1991 WHEN IT WAS BARRED FROM
SELLING ITS GAME GENIE VIDEO GAME DEVICE FOR NINTENDO MACHINES AS A RESULT
OF A NINTENDO LAWSUIT CHARGING LEWIS GALOOB WITH COPYRIGHT INFRINGEMENT
NINTENDO EVENTUALLY LOST THAT LAWSUIT LEADING TO THE COURT'S 15 MILLION
AWARD NINTENDO OF AMERICA IS A UNIT OF JAPAN'S NINTENDO CO

YESTERDAY THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN
FRANCISCO UPHELD THAT AWARD WHICH HAD BEEN CHALLENGED BY NINTENDO

NINTENDO COULDN'T IMMEDIATELY BE REACHED FOR COMMENT IT CAN APPEAL THE
LATEST RULING

IN TRADING ON THE NEW YORK STOCK EXCHANGE LEWIS GALOOB CLOSED AT 8375
DOWN 25 CENTS 9402230088 940223 LETTERS TO THE EDITOR A VOUCHER SYSTEM
 FOR MEDICAL CARE

IN RESPONSE TO YOUR FEB 4 EDITORIAL HEALTHY BUSINESS OUR PRESENT
HEALTHCARE SYSTEM IS RESPONSIBLE FOR CREATING THE HIGHEST QUALITY AND MOST
INNOVATIVE MEDICAL CARE IN THE HISTORY OF THE WORLD THIS IS LARGELY DUE TO
BUSINESSES' DESIRES TO INCREASE PROFITS I SUGGEST WE LEAVE THE INCENTIVES
ALONE THERE IS NO PROBLEM THERE

ACCORDING TO EVEN THE MOST HYSTERICAL OF THE CRITICS OF OUR MEDICAL SYSTEM
THE PRINCIPAL PROBLEM LIES WITH THE 18 MILLION UNINSURED CITIZENS WHO HAVE
NO WAY OF BUYING INTO THE SYSTEM THUS THE URGE TO TINKER WITH PRICES
THEREBY DISTORTING SUPPLY AND DEMAND SIGNALS IS STRONG

THE ANSWER HOWEVER IS TO ISSUE VOUCHERS TO THOSE IN NEED OF FINANCIAL
ASSISTANCE LESS AFFLUENT PATIENTS WOULD PAY THEIR HEALTHRELATED BILLS WITH
THE VOUCHERS WHILE THE DOCTORS HOSPITALS AND PHARMACIES WOULD RECEIVE CASH
FOR THEIR VOUCHERS DIRECTLY FROM THE US GOVERNMENT ADMITTEDLY THIS WOULD
BE EXPENSIVE BUT THE QUALITY OF HEALTH CARE IN THIS COUNTRY WOULD STILL BE
ALLOWED TO IMPROVE AND OTHER LESS EFFICIENT MEANS OF RATIONING COULD BE
AVOIDED 9402230087 940223 LETTERS TO THE EDITOR THOSE VIRTUES COMMON
TO ALL PEOPLES

AS ACADEMIC DEAN OF ONE OF THE MEMBER COLLEGES IN THE WESTERN ASSOCIATION OF
SCHOOLS AND COLLEGES I READ WITH CONSIDERABLE INTEREST THE RESPONSE OF DR
DONALD GERTH CHAIR OF THE WASC'S ACCREDITING COMMISSION TO YOUR DEC 29
EDITORIAL THE DIVERSITY STANDARD ETHNIC DIVERSITY AND ACCREDITATION
JAN 26

DR GERTH ASSERTS THAT YOUR EDITORIAL GETS MANY THINGS WRONG FOR EXAMPLE
HE DENIES THAT WASC'S ACCREDITING DOCUMENT SETS FORTH A NEW DIVERSITY
STANDARD MEMBER INSTITUTIONS HAVE SUBSCRIBED TO IT SINCE 1988 HE CLAIMS
YET THE 1992 REPORT OF AN EXTERNAL REVIEW PANEL COMMISSIONED BY WASC TO
REVIEW ITS OPERATIONS QUESTIONS THE LEGITIMACY OF THE DIVERSITY STANDARD
WASC THE REPORT STATES BEGAN ASSERTING IT WITH VIGOR BEFORE IT HAD BEEN
ESTABLISHED WITHIN THE ACADEMIC COMMUNITY THROUGH A FORMAL COLLEGIAL AND
CONSULTATIVE PROCESS IT ADDS MANY INSTITUTIONS DID NOT REALIZE THE
SIGNIFICANCE OF THESE CHANGES IN 1988 NOR THE EMPHASIS THAT WOULD
SUBSEQUENTLY BE PLACED ON DIVERSITY

AGAIN DR GERTH ASSERTS THAT THE NEW DOCUMENT CLEARLY STATES THAT
ACCREDITATION WILL NOT BE DENIED ANY COLLEGE THAT IS THOUGHTFULLY
CONSIDERING THE MATTER OF DIVERSITY IN FACT MY COLLEGE AND OTHERS
FOLLOWING THE LEAD OF MIDDLE STATES HAVE REPEATEDLY REQUESTED THAT THE
DOCUMENT CLEARLY STATE THAT DIVERSITY NOT BE USED TO UNDERMINE THE AUTONOMY
OR ALTER THE MISSION OF ANY INSTITUTION NO SUCH STATEMENT HAS APPEARED IN
ANY OF THE DRAFTS

MOST INTERESTING HOWEVER IS HOW DR GERTH DEFENDS THE CLAIM THAT DIVERSITY
AND EDUCATIONAL QUALITY ARE INEXTRICABLY LINKED SINCE OUR SOCIETY IS
ETHNICALLY DIVERSE WE SAY THAT ANY EDUCATION THAT PROVIDED NO
FAMILIARITY WITH THE WAYS AND HISTORIES OF THE GROUPS TO WHICH FELLOW
STUDENTS CITIZENS AND COWORKERS BELONG WOULD REPRESENT A SERIOUS GAP IN
EDUCATIONAL QUALITY

DR GERTH ASSURES US THAT INSTITUTIONS NEED ONLY THOUGHTFULLY CONSIDER
DIVERSITY PRESUMABLY WITH THE FREEDOM TO REJECT IT ARE WE TO CONCLUDE
THEN THAT WASC WILL ACCREDIT SUCH INSTITUTIONS EVEN THOUGH IT THINKS THERE
IS A SERIOUS GAP IN THE EDUCATION THEY OFFER

ALSO WHAT EXACTLY IS DR GERTH'S ARGUMENT THAT DIVERSITY AND QUALITY ARE
INEXTRICABLY LINKED HE SEEMS TO SAY NOTHING MORE THAN WE SAY IT PERHAPS
AN ARGUMENT CAN BE MADE BY SUPPLYING THE PREMISE THAT THE ONLY WAY TO
ACHIEVE CIVILITY IN THE POPULACE IS THROUGH STUDYING DIVERSE CULTURES YET
DR GERTH OFFERS NO SUPPORT FOR THIS RADICAL AND CONTROVERSIAL CLAIM

DR GERTH SIMPLY MAKES NO ALLOWANCE FOR A LONGSTANDING RESPECTABLE VIEW OF
EDUCATION THAT OFFERS A MEANS TO THE ENDS HE DESIRES BUT AVOIDS PRODUCING
AN ATMOSPHERE BLIGHTED BY CENSORSHIP SPEECH CODES QUOTA HIRING AND OTHER
SYMPTOMS OF POLITICAL CORRECTNESS PERHAPS ANOTHER IF NOT BETTER WAY OF
UNIFYING PEOPLE IS TO LOOK TO WHAT ALL SHARE AS HUMAN BEINGS TO THOSE
VIRTUES THAT ARE COMMON TO ALL PEOPLES OF ALL TIMES DR GERTH MAY DENY THAT
THERE ARE SUCH VIRTUES BUT THEN ONE WONDERS WHOSE VIEWS REALLY WILL
COMPROMISE AMERICA'S FUTURE 9402230086 940204 REVIEW & OUTLOOK
EDITORIAL HEALTHY BUSINESSES

THE BUSINESS ROUNDTABLE'S OVERWHELMING VOTE AGAINST SUPPORTING THE CLINTON
HEALTH CARE PROPOSAL DESERVES SOME ATTENTION FOR WHAT IT SAYS ABOUT THIS
ISSUE AND MORE GENERALLY ABOUT BUSINESS'S DEALINGS WITH WASHINGTON

UP TO NOW THERE'S OFTEN BEEN A DEMARCATION LINE BETWEEN BIG AND SMALL
BUSINESS ON ISSUES LIKE THIS ONE THE NATIONAL FEDERATION OF INDEPENDENT
BUSINESS THE SMALLBUSINESS LOBBY HAS COME TO BE VIEWED AS THE MAIN
OPPONENT OF GOVERNMENT EXPANSIONS WHILE THE BUSINESS ROUNDTABLE
HISTORICALLY HAS BEEN SUSPECTED OF AN INSTINCT TO CUT A DEAL ABSORB THE
COSTS AND LET THEIR SMALLER COMPETITION FIGURE OUT HOW TO SURVIVE THE ADDED
BURDENS

THE CLINTON ADMINISTRATION SEEMS TO HAVE BEEN SURPRISED TO DISCOVER THAT THE
ROUNDTABLE'S NORMALLY ROUND HEELS ARE SUDDENLY DUG IN WE KNOW THE
CLINTONITES DISLIKE THE 1980S BUT MAYBE THEY SHOULD HAVE BEEN PAYING CLOSER
ATTENTION TO WHAT WAS GOING ON THEN IN CORPORATE AMERICA BETTER YET RATHER
THAN GIVING OFF THE IMPRESSION THAT THEY'RE TOO SMART TO TALK TO BUSINESSMEN
WE'RE THINKING OF THE EYESONLY WHITE HOUSE HEALTH CARE TASK FORCE THEY
MIGHT HAVE SPENT SOME TIME WITH THE CEOS NOW RUNNING THESE COMPANIES THE
KEY THOUGH WOULD HAVE BEEN TO TALK TO THEM ABOUT BUSINESS NOT THE BLUE
SKY OF PUBLIC POLICY

THEY'D HAVE LEARNED THAT THE OLDSTYLE CORPORATE EMPIREBUILDERS ARE LARGELY
GONE DURING THE 1980S CORPORATE AMERICA WAS FORCED TO RESTRUCTURE
DOWNSIZE AND ADOPT SOME NEW WAYS OF DOING BUSINESS THE NEW BREED OF CEOS
WHO'VE GONE THROUGH THOSE WRENCHING CHANGES ARE OBSESSED WITH CONTROLLING
COSTS

PRESIDENT CLINTON AND HILLARY CLINTON BOTH MADE PERSONAL APPEALS TO THE
ROUNDTABLE SO DID SUPERWONK IRA MAGAZINER THEY APPARENTLY DIDN'T SHIFT A
SINGLE VOTE ONE BIG REASON WE SUSPECT IS THAT THE PITCH HAD NO
CREDIBILITY ON THE COST SIDE

ONE OF THE MOST IMPORTANT LESSONS BUSINESS LEADERS HAVE BEEN FORCED TO LEARN
THE PAST 20 YEARS IS MANDATES CONCEAL COSTS AND SO TEND TO PROLIFERATE LIKE
MUSHROOMS STATE AND LOCAL GOVERNMENTS HAVE LONG BEEN BURDENED BY FEDERAL
MANDATES THAT DRIVE UP BUDGETS AND RESTRICT FLEXIBILITY THEY ALSO KNOW THAT
THE FEDS LARGELY TURN A DEAF EAR TO COMPLAINTS ABOUT ENFORCEMENT
ABSURDITIES AND THEY RARELY SUFFER POLITICALLY FOR THE DAMAGE MANDATES
CAUSE

MEMBERS OF THE ROUNDTABLE AND THE US CHAMBER OF COMMERCE WHICH ALSO
DECLARED ITS OPPOSITION TO THE CLINTON PLAN YESTERDAY SAY THEY ARE
CONVINCED THE EMPLOYER HEALTHINSURANCE MANDATE IN THE CLINTON PLAN WOULD
WORK THE SAME WAY BUSINESS WOULD BECOME IN EFFECT THE TAX COLLECTOR FOR
THE HEALTH CARE STATE WHEN THE SYSTEM'S FINANCING PROVED INADEQUATE PRICE
CONTROLS WOULD BE TIGHTENED AND THE PLAN'S INSURANCE ALLIANCES WOULD START
RATIONING SOME TYPES OF CARE

THERE'S ANOTHER SIGNIFICANT SHIFT EVIDENT IN THE ROUNDTABLE OUTCOME ON MOST
SUCH ISSUES IT'S OFTEN THE CORPORATIONS' WASHINGTON REPS WHO SHAPE THEIR
PUBLIC POSTURE THESE FOLKS ARE BELTWAY LIFERS MANY ARE EXCONGRESSIONAL
STAFFERS AND HISTORICALLY FEW EXECUTIVES WERE WILLING TO IGNORE THE ROAD
MAPS THE REPS DREW TO STEER FIRMS AROUND LEGISLATIVE ROAD HAZARDS AND OTHER
ARCANA

BUT WE'RE TALKING HERE ABOUT REPAVING ONESEVENTH OF THE ECONOMY IRA
MAGAZINER TOLD THE ROUNDTABLE'S WASHINGTON REPS THAT THE CENTER OF THE
HEALTH CARE DEBATE LIES BETWEEN BETWEEN THE COOPER BILL AND CANADA NAMELY
CLINTON THAT'S THE KIND OF COMPROMISE REPS HAVE SOLD TO CEOS IN THE PAST
BUT IT APPEARS THIS ISSUE'S IMPLICATIONS ARE TOO VAST TO ABSORB THE COSTS
OF ANOTHER BELTWAY DEAL

WE HOPE THAT NOW THE ROUNDTABLE'S MEMBERS WILL PUT THE HEALTH CARE PLAN
DRAFTED BY DEMOCRATIC REP JIM COOPER UNDER THE SAME GLASS THEY USED TO
FLYSPECK THE CLINTON PLAN SOME MEMBERS PRIVATELY AGREE THAT COOPER CONTAINS
PROVISIONS THAT COULD EXPAND BUREAUCRACY AND MANDATES THOUGH IT AVOIDS THE
ONESIZEFITSALL CLINTON APPROACH

IT LOOKS THOUGH AS IF FOLKS ON BOTH SIDES OF THE ISSUE LEARNED A FEW
THINGS THIS WEEK IT'D BE NICE TO THINK THAT A LOT OF BELTWAY FOLKS LEARNED
WHAT THE BUSINESS COMMUNITY DISCOVERED IN THE '80S YOU GET PUNISHED FOR
TRYING TO HIDE OR IGNORE YOUR REAL COSTS SEE RELATED LETTER A VOUCHER
SYSTEM FOR MEDICAL CARE WSJ FEB 23 1994 9402040067 YY94 MM02
9402230085 940211 LETTERS TO THE EDITOR THE INJURY IS HIDDEN BUT IT
STILL HURTS

AS A DOCTOR WHO SEES MANY PATIENTS WITH REPETITIVE STRAIN INJURY RSI AND
A PATIENT WITH RSI WHO COAUTHORED A BOOK ON THE TOPIC WE MUST RESPOND TO
SOME POINTS IN EUGENE SCALIA'S JAN 13 EDITORIALPAGE ARTICLE OSHA TO
BUSINESS SLOW DOWN YOU WORK TOO FAST SKEPTICISM THAT RSI EXISTS AS A
DIAGNOSABLE CONDITION IS TYPICAL OF THE CYNICAL ATTITUDES MOST RSI PATIENTS
FACE WITH THEIR HIDDEN DISABILITY RSI ALSO KNOWN AS CUMULATIVE TRAUMA
DISORDER MOST CERTAINLY CAN BE DIAGNOSED BY A COMPETENT PHYSICIAN BUT IT
CANNOT BE CURED BY ADDRESSING ONLY ONE CONTRIBUTING FACTOR WHICH THE
ARTICLE IMPLIES IS A SIMPLE CHOICE BETWEEN WORKING AND UNEMPLOYMENT RSI IS
A WIDESPREAD SERIOUS AND COMPLEX PROBLEM THAT REQUIRES MANY LEVELS OF
TREATMENT

MR SCALIA ASSERTS THAT HARD WORK IS TIRING AND UNCOMFORTABLE RSI IS
HARDLY A MATTER OF SIMPLE DISCOMFORT PEOPLE CAN BECOME SO SEVERELY INJURED
THAT THEY CAN NO LONGER WORK MUCH LESS PERFORM SIMPLE ACTS LIKE EATING
WASHING THEIR HAIR OR PRESSING A TELEPHONE BUTTON WITHOUT INTENSE PAIN AND
EFFORT FURTHERMORE IT IS THE MOST HIGHLY MOTIVATED WORKERS WHO GET INJURED
FIRST PRECISELY BECAUSE THEY WORK SO HARD AND FAST MANY OF THESE PEOPLE
BECOME VERY DEPRESSED WHEN THEY CAN NO LONGER HOLD A JOB

MR SCALIA LABELS AS PSEUDOSCIENTIFIC ERGONOMISTS' SUGGESTION THAT
WORKERS TAKE REST BREAKS BUT ANY PHYSICIAN KNOWS THAT IF YOU SUBJECT A
MUSCLE TO REPEATED STRESS YOU WILL EVENTUALLY DAMAGE IT SO THE WORK ITSELF
MUST BE CHANGED RATHER THAN REQUIRING WORKERS TO REPEAT THE SAME MOVEMENTS
OVER AND OVER JOBS SHOULD BE EXPANDED TO INCLUDE MORE VARIETY THAT WAY
PEOPLE COULD BE PRODUCTIVE ALL DAY WITHOUT OVERSTRESSING ANY SINGLE BODY
PART

WE FAIL TO UNDERSTAND WHY MR SCALIA WOULD OBJECT TO MAKING WORK STATIONS
ADJUSTABLE AND THEREFORE COMFORTABLE HOWEVER ADJUSTABLE WORK STATIONS
ALONE WILL NOT IMPROVE WORKERS' POSTURE PEOPLE CAN SLOUCH IN THE BEST
CHAIR AND STATEOFTHEART WORK STATIONS WILL NOT PREVENT RSI IF PEOPLE
EMPLOY DANGEROUS TYPING TECHNIQUES LIKE ATHLETES COMPUTER USERS KEEP JUST
THEIR UPPER BODIES FIT TO WORK AT THE KEYBOARD NO SERIOUS RUNNER WOULD JOG
EIGHT OR MORE HOURS A DAY FOR EXAMPLE BUT MANY COMPUTER USERS THINK
NOTHING OF TYPING FOR THAT LONG THEN PLAYING VIDEO GAMES AT HOME FOR A FEW
HOURS AT NIGHT

THE REASON ERGONOMISTS CANNOT DETERMINE AT WHAT POINT REPETITION AND FORCE
BECOME HAZARDOUS IS BECAUSE THAT MEASUREMENT DIFFERS FOR EACH PERSON MANY
FACTORS CONTRIBUTE TO RSI AGE HEREDITY BAD WORKING CONDITIONS STRESS
DOUBLEJOINTEDNESS POOR PHYSICAL CONDITION OTHER MEDICAL AILMENTS POOR
POSTURE AND MOST OF ALL FAULTY TYPING TECHNIQUE TO COME UP WITH
UNIFORM STANDARDS IS AKIN TO PREDICTING HOW MANY TENNIS PLAYERS WILL GET
INJURED NEXT YEAR TO ANSWER THIS YOU WOULD HAVE TO TAKE MANY VARIABLES
INTO ACCOUNT SUCH AS HOW FIT ARE THEY HOW MANY YEARS HAVE THEY PLAYED
TENNIS WITH POOR FORM HAVE THEY SUFFERED PREVIOUS INJURIES THAT COULD
AFFECT THEIR CURRENT AILMENT

MR SCALIA CORRECTLY NOTES THAT SOME FORMS OF RSI MAY BE ATTRIBUTABLE TO OR
COMPLICATED BY CAUSES OTHER THAN WORK AND WE LAMENT THAT MORE PHYSICIANS
ARE NOT CAPABLE OF MAKING ACCURATE DIAGNOSES IN THESE CASES BECAUSE OF
DOCTORS' LACK OF AWARENESS ABOUT RSI MANY PEOPLE CROSS THE LINE BETWEEN
REVERSIBLE AND PERMANENT INJURY SEE RELATED LETTER KEYBOARD ATHLETES 
WSJ FEB 23 1994 9402110056 YY94 MM02 9402230084 940223 BUSINESS BRIEF
 THERMO ELECTRON CORP THERMO FIBERTEK TO REPORT INCREASED 4THPERIOD
PROFIT

THERMO FIBERTEK INC CITING HIGHER CUSTOMER SPENDING SAID IT EXPECTS TO
REPORT A 34 INCREASE IN FOURTHQUARTER NET INCOME ON A 24 INCREASE IN
REVENUE

WILLIAM A RAINVILLE PRESIDENT AND CHIEF EXECUTIVE SAID THERMO FIBERTEK
EXPECTS NET INCOME OF 24 MILLION OR NINE CENTS A SHARE COMPARED WITH A
YEAREARLIER 18 MILLION OR SEVEN CENTS A SHARE REVENUE IS EXPECTED TO BE
408 MILLION UP FROM A YEAREARLIER 329 MILLION

THERMO FIBERTEK IS A MAKER OF EQUIPMENT USED IN MANUFACTURING BOTH RECYCLED
AND NONRECYCLED PAPER IT IS A PUBLICLY TRADED UNIT OF THERMO ELECTRON
CORP WALTHAM MASS

MR RAINVILLE SAID THE QUARTERLY RESULTS WERE BOOSTED BY INCREASED SPENDING
BY US CUSTOMERS WITH THE END OF THE RECESSION WE'RE SEEING A TURNAROUND
IN NORTH AMERICA HE SAID 9402230082 940223 JAPAN WORSE IS YET TO
COME  BY KAREN ELLIOTT HOUSE

TOKYO JAPAN'S ECONOMY IS IN THE MIDST OF A LONG WINTER AND SPRING ISN'T
YET IN SIGHT

IN THE PAST TWO YEARS JAPAN HAS EXPERIENCED THE SHOCKS OF A STOCK MARKET
COLLAPSE EXPORT CONTRACTION PLUMMETING CORPORATE PROFITS CREDIT CRUNCH
AND TOPPLING OF A POLITICAL ORDER REGARDLESS WORSE IS YET TO COME AS JAPAN
FLOUNDERS HALFWAY BETWEEN A MANAGED OR MARKET ECONOMY BETWEEN A RIGGED OR
OPEN POLITICAL SYSTEM THERE'S NO GOING BACK TO THE PRETENSES AND
PROTECTIONISM OF THE PAST YET THERE IS GREAT PAIN LOW GROWTH AND HIGH
UNEMPLOYMENT IN MOVING TOWARD A MORE OPEN ECONOMIC AND POLITICAL SYSTEM

TO MAKE MATTERS WORSE THE CLINTON ADMINISTRATION HAS CHOSEN THIS OF ALL
MOMENTS TO LAUNCH A FRONTAL ASSAULT ON JAPAN'S TRADE PRACTICES MORE
IMPORTANT THAN THE POOR TIMING IS THE FACT THAT THE GETTOUGH POLICY IS
SHORTSIGHTED FOR AMERICA HOPES FOR SUSTAINED GLOBAL GROWTH AND THUS
EXPANDING US EXPORTS ARE DEPENDENT ON HITCHING JAPAN'S ECONOMIC ENGINE TO
OUR OWN THE MOST EFFECTIVE SPUR TO NASCENT US RECOVERY WOULD BE GROWTH IN
JAPAN YET MOST PREDICTIONS PUT ANNUAL GROWTH IN GROSS DOMESTIC PRODUCT THIS
YEAR AT WELL UNDER 1 COMPARED WITH 3 FOR THE US

AT THE CORE OF JAPAN'S ECONOMIC PROBLEM LIE NATIONAL AND CORPORATE
NONCOMPETITIVENESS THE COMBINATION OF AN UNREALISTICALLY STRONG YEN A
PADDED WORK FORCE AND YEARS OF EXPORTATALLCOST CORPORATE STRATEGIES HAS
LEFT JAPANESE COMPANIES WITH BIG LOSSES AND THEIR BANKERS HOLDING BIG DEBTS
FOR THE FIRST TIME JAPANESE COMPANIES CAN'T EXPORT THEIR WAY OUT OF THESE
DIFFICULTIES BECAUSE THE HIGH YEN MAKES THEIR PRODUCTS UNCOMPETITIVE
OVERSEAS

JAPANESE BANKS WITH THEIR OWN ASSETS SEVERELY REDUCED BY THE 1992 MARKET
COLLAPSE LACK THE ABILITY OR INCLINATION TO BAIL OUT JAPANESE COMPANIES
JAPANESE CONSUMERS MEANWHILE CAN'T BE COUNTED ON TO RESCUE CORPORATE JAPAN
BY BUYING OVERPRICED JAPANESE GOODS DESPITE THESE REALITIES JAPAN HAS YET
TO TASTE THE BITTER MEDICINE AMERICA HAS TAKEN SINCE THE END OF THE '80S 
CORPORATE DOWNSIZING AND RESTRUCTURING LAYOFFS AND RISING UNEMPLOYMENT
ECONOMIC PAIN AT HOME FOR ECONOMIC COMPETITIVENESS ABROAD

A FEW JAPANESE REALIZE THIS LIES AHEAD MOST HOWEVER REMAIN OBLIVIOUS
PEOPLE STILL BELIEVE EXPORTS WILL RETURN AND SAVE US SAYS AKIO MIKUNI
PRESIDENT OF HIS OWN BONDRATING FIRM BUT THEY WON'T WE HAVE TO FILL THE
GAP OURSELVES THROUGH MORE CONSUMER SPENDING

JAPAN'S ECONOMY HE SAYS WILL BEGIN GROWING AGAIN THIS YEAR LED BY A
PENTUP CONSTRUCTION BOOM DELAYED BY INVESTIGATIONS INTO POLITICAL BRIBES
THIS BOOMLET WILL FUEL WISHFUL THINKING THAT THE WORST IS OVER BUT THIS
FRAGILE GROWTH HE AND OTHER REALISTS WARN WILL SOON BE CHOKED OFF BY THE
TIGHTENING NOOSE OF A HIGH YEN

INDEED A RETURN TO SUSTAINED ECONOMIC GROWTH REQUIRES GENUINE POLITICAL AND
ECONOMIC REFORM SOMETHING THAT REMAINS ELUSIVE WHILE JAPANESE VOTERS HAVE
ELECTED A SOCALLED REFORM GOVERNMENT LED BY MORIHIRO HOSOKAWA THERE'S
LITTLE SIGN THAT THEY ARE WILLING TO MAKE FUNDAMENTAL REFORMS THESE INCLUDE
THE SORT THAT DISMANTLE A REGULATORY STRUCTURE THAT INTRUDES INTO EVERY
ASPECT OF ECONOMIC LIFE A DISTRIBUTION SYSTEM THAT INFLATES THE COST OF
EVERY PRODUCT LIFETIME EMPLOYMENT PRACTICES THAT SUBSIDIZE THE SOCIETY AT
ECONOMIC COST OWNERSHIPS AMONG COMPANIES AND BANKS THAT INHIBIT ANY FROM
FLOATING ON THEIR OWN BOTTOMS THEY ALSO AVOID CHANGES IN THEIR POLITICAL
SYSTEM TO RID IT OF THE KIND OF ROTTEN BOROUGHS THAT MOST WESTERN
DEMOCRACIES PUT BEHIND THEM GENERATIONS AGO A RECENT STUDY BY BARCLAYS DE
ZOETE WEDD RESEARCH JAPAN LTD SAYS THAT MERELY BY ELIMINATING THE 10000
REGULATIONS THAT CONSTRAIN 50 OF THE ECONOMY JAPAN COULD BOOST ITS GROSS
NATIONAL PRODUCT 10

FUNDAMENTAL REFORMS RUN AGAINST THE JAPANESE GRAIN AS A NATION AND AS A
PEOPLE A NATION THAT HAS PRIDED ITSELF ON EXPORT PROWESS MUST NOW LEARN TO
DEVELOP ITS DOMESTIC MARKET PEOPLE WHO HAVE PRIDED THEMSELVES ON
SUBLIMATING INDIVIDUAL INTERESTS TO THE GOOD OF THE GROUP AND WHO HAVE
MEASURED ECONOMIC WELLBEING IN TERMS OF DOMESTIC SAVINGS NOT CONSUMPTION
MUST NOW LEARN TO SPEND TO ENHANCE THEIR PERSONAL LIVING STANDARDS

MORE BASIC YET THE JAPANESE ARE GOING TO HAVE TO LEARN TO COMPETE AMONG
THEMSELVES NOT JUST AGAINST FOREIGNERS AND TO ACCEPT THAT ANY COMPETITIVE
SOCIETY INCLUDES BOTH WINNERS AND LOSERS SHIFTING JAPAN'S FOCUS FROM
INTERNATIONAL TO DOMESTIC MARKETS FROM SAVINGS TO SPENDING FROM CONSENSUS
TO INTERNAL COMPETITION WILL TAKE AT LEAST A DECADE SAY REALISTS

AND ALONG THE WAY THERE WILL BE PAIN AS WELL AS GAIN A LIKELY SCENARIO HAS
A NUMBER OF JAPANESE COMPANIES AND BANKS GOING BANKRUPT IN THE COMING YEARS
JAPANESE UNEMPLOYMENT IS LIKELY TO RISE FROM THE OFFICIAL 2 TO SOMETHING
CLOSE TO 6 GROWTH WILL BARELY RISE THIS YEAR AND LIKELY WON'T RISE ABOVE
3 FOR THE REST OF THE DECADE JAPAN'S SHARE OF GLOBAL GNP WHICH ROSE
STEADILY FOR SEVERAL DECADES IS LIKELY TO FALL BY THE END OF THE DECADE
PARTICULARLY GALLING AS CHINA AND OTHER ASIAN NEIGHBORS GROW

WHILE ALL OF THIS WILL SHOCK MANY JAPANESE IT SHOULD NOT SURPRISE AMERICANS
 EXCEPT TO THE DEGREE THAT AMERICANS IN THE LATE 1980S BUILT UP THE
JAPANESE AS ECONOMIC TERMINATORS

AFTER A DECADE OF EXPORTING AT ALL COSTS TO GAIN A GLOBAL MARKET SHARE THEY
CANNOT PROFITABLY SUSTAIN CORPORATIONS ARE NOW LOSING BOTH MARKET SHARE AND
MONEY THE ALMIGHTY YEN SO LONG A SYMBOL OF JAPANESE ECONOMIC PROWESS HAS
BECOME JUST ANOTHER ALBATROSS THAT INHIBITS COMPETITIVENESS JAPAN'S EXPORTS
TO THE US ARE PURCHASED WITH DOLLARS WHICH CASHSTARVED JAPANESE
COMPANIES MUST REPATRIATE QUICKLY TO MEET EXPENSES BUT USING THESE
EXPORTEARNED DOLLARS TO BUY YEN DRIVES THE YEN HIGHER AND MAKES JAPANESE
EXPORTS THAT MUCH LESS COMPETITIVE

INTO THIS JAPANESE INFIRMARY STRUTS THE CLINTON ADMINISTRATION WHICH HAS
VACILLATED ON VIRTUALLY EVERY OTHER FOREIGN POLICY ISSUE OVER THE PAST YEAR
BUT NOW CHOOSES TO GET TOUGH WITH TOKYO THE PATIENT IS ILL AND CAN'T GET
WELL WITHOUT SWALLOWING BITTER MEDICINE BUT WHAT THE PATIENT DOESN'T NEED
RIGHT NOW IS FOR A HEALTHIER FRIEND TO COME ALONG AND KICK IT IN THE
STOMACH THE KICK WON'T KILL IT BUT IT SURELY WON'T DO EITHER THE PATIENT
 OR THE FRIEND ANY GOOD

MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES 9402230081
940223 CREDIT MARKETS LONGERTERM TREASURYS BREAK LOSING STREAK AS
GREENSPAN REASSURES INVESTORS ON INFLATION  BY LESLIE SCISM AND
THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL

NEW YORK ENDING A FIVESESSION LOSING STREAK PRICES OF LONGERTERM US
TREASURY NOTES AND BONDS EKED OUT MODERATE GAINS IN QUIET TRADING YESTERDAY

CORPORATE DEBT SECURITIES GENERALLY EDGED UP IN PRICE ALONGSIDE TREASURYS
BUT OWNERS OF MANY RH MACY & CO BONDS TOOK IT ON THE CHIN THE RETAILER'S
UNSECURED DEBT TRADED DOWN DRAMATICALLY ON NEWS THAT THE COMPANY HAS BEEN
NEGOTIATING A REORGANIZATION PLAN WITH FIDELITY INVESTMENTS AND GENERAL
ELECTRIC CAPITAL A UNIT OF GENERAL ELECTRIC CO MACY PREVIOUSLY WAS
NEGOTIATING WITH BONDHOLDERS AND THE FACT THAT IT SWITCHED ALLIES RAISED
PROSPECTS THAT A CRAM DOWN PLAN COULD BE IN THE WORKS IN A CRAM DOWN AN
UNPALATABLE REORGANIZATION PLAN IS FORCED UPON CREDITORS WITH THE LEAST
AMOUNT OF CLOUT LATE YESTERDAY A FEDERAL BANKRUPTCY JUDGE APPOINTED A
MEDIATOR TO HELP NEGOTIATE A SETTLEMENT AND PRICES RECOVERED SLIGHTLY

MACY'S 145 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 WERE BID AS LOW
AS 375 YESTERDAY DOWN FROM 45 ON FRIDAY WHEN THE MARKET CLOSED EARLY IN
ADVANCE OF THE PRESIDENTS DAY WEEKEND AS THE MARKET CLOSED YESTERDAY THOSE
SECURITIES WERE BID AT 405 DOWN 45 POINTS FROM FRIDAY AMONG DISAPPOINTED
HOLDERS ARE MANY SMALL INVESTORS WHO HAD RUSHED TO SNAP THE BONDS UP IN THE
HOPE THAT FEDERATED DEPARTMENT STORES INC'S RECENT INVESTMENT IN MACY'S
SECURED DEBT SIGNALED THE BEGINNING OF A BIDDING WAR

THE YIELD ON THE BENCHMARK 30YEAR TREASURY FELL TO 660 YESTERDAY THAT'S
DOWN FROM 662 FRIDAY ITS PRICE WHICH MOVES INVERSELY TO YIELD ENDED AT
95 13/32 UP 5/16 OR 3125 FOR A BOND WITH A 1000 FACE AMOUNT THE BIG
PRICE DRIVER WAS CONGRESSIONAL TESTIMONY BY FEDERAL RESERVE CHAIRMAN ALAN
GREENSPAN IN HIS SEMIANNUAL TALK BEFORE A HOUSE BANKING SUBCOMMITTEE
YESTERDAY MORNING HE SAID THE FED IS LIKELY TO CONTINUE BOOSTING SHORTTERM
INTEREST RATES BUT HE PLAYED DOWN FEARS THAT INFLATIONARY PRESSURES ARE NOW
PRESENT INSTEAD HE EMPHASIZED SIGNS THAT INFLATION IS WELL UNDER CONTROL
SUCH AS MUTED WAGE INCREASES

PRIOR TO HIS SPEECH MANY INVESTORS THOUGHT THE FED'S EARLIER ACTION TO
INCREASE THE FEDERALFUNDS RATE CONFIRMED INFLATIONARY EXPECTATIONS SAID
ALAN KRAL A PORTFOLIO MANAGER FOR TREVOR STEWART BURTON & JACOBSEN INC
TREVOR STEWART IS A MONEYMANAGEMENT FIRM WITH 1 BILLION IN ASSETS AND HAS
RECENTLY BEEN BUYING LONGERTERM TREASURY DEBT HOPEFULLY THE IDEA GETS
ACROSS NOW THAT THE FED IS TRYING TO KNOCK DOWN EXPECTATIONS BEFORE THEY GET
STARTED MR KRAL SAID

WHILE TALKING TOUGH ON INFLATION THE FED CHAIRMAN PROVIDED NO CLUES AS TO
THE TIMING OF THE NEXT FED TIGHTENING HIS HINTS OF FUTURE INTERESTRATE
HIKES KEPT PRESSURE ON THE PRICES OF SHORTERTERM TREASURY MATURITIES THOSE
ARE THE SECURITIES MOST AFFECTED BY A FED TIGHTENING THE BENCHMARK TWOYEAR
NOTE ENDED SLIGHTLY DOWN IN PRICE WHILE THE THREEYEAR NOTE ENDED
UNCHANGED

AT THE SAME TIME LONGERTERM ISSUES ATTRACTED SCATTERED BUYING AS TRADERS
AND INVESTORS WERE REASSURED BY MR GREENSPAN'S ANTIINFLATION STANCE WE
SAW GOOD INTEREST IN SECURITIES MATURING IN FIVE YEARS AND OUT AND WE
COULDN'T SELL ANYTHING THAT WAS UNDER FIVE YEARS SAID JOHN COSTAS MANAGER
OF GOVERNMENTSECURITIES TRADING AT CS FIRST BOSTON INC GREENSPAN SENT A
SOLID MESSAGE SAYING THAT THE FED'S TIGHTENING IS A RATIONAL APPROACH AND
THAT ITS GOAL IS TO TRULY BE PREEMPTIVE

BUT TRADERS SAID MUCH OF THE BUYING CAME FROM PROFESSIONAL TRADERS CLOSING
OUT SHORT POSITIONS IN A SHORT TRADE AN INVESTOR SELLS A BORROWED
SECURITY IN THE HOPE OF REPLACING IT LATER WITH A CHEAPER SECURITY AND
POCKETING THE DIFFERENCE I DIDN'T SEE ANY FUNDAMENTAL BUYERS JUST
PROFESSIONAL TRADERS SAID MEAD BRIGGS MANAGER OF RISK TRADING FOR
DEUTSCHE BANK GOVERNMENT SECURITIES INC THE TEST FOR WHETHER THIS MODEST
RECOVERY IS VIABLE COMES AS THE GOVERNMENT AUCTIONS TWOYEAR TREASURY NOTES
TODAY AND FIVEYEAR NOTES TOMORROW HE SAID

EVEN SOME OF THE FEW REMAINING BOND BULLS ARE HESITANT ABOUT DECLARING THAT
A RALLY HOWEVER MODEST IS IN THE WORKS SOME OF THE BOUNCE YESTERDAY
REFLECTS THE VIRULENCE OF THE SELLOFF AT THE END OF LAST WEEK WHICH AFTER
ALL WAS NOT BASED ON ANY ECONOMIC NEWS OF IMPORTANCE SAID JOHN LIPSKY
CHIEF ECONOMIST FOR SALOMON BROTHERS INC BUT IT'S GOING TO TAKE MORE
ACTION BY THE FED AMONG OTHER THINGS TO CONVINCE INVESTORS THAT THEY DON'T
FACE A RESURGENCE OF INFLATIONARY PRESSURES AS THE ECONOMY USES UP ITS
CUSHION OF EXCESS CAPACITY MR LIPSKY BELIEVES YIELDS ON THE 30YEAR BOND
WILL FALL BACK BELOW 6 LATER THIS YEAR PROVIDED THAT GROWTH REMAINS
MODERATE INFLATION IS STABLE AND FISCAL POLICY IS RESTRICTIVE AMONG OTHER
THINGS

ED LABENSKI PRESIDENT OF IDS FIXEDINCOME ADVISORS MINNEAPOLIS NOTED THAT
SOME OF YESTERDAY'S BUYING LIKELY WAS THE COMPLETION OF THE DIGESTION OF
THE LAST 30YEAR BOND AUCTION SOME PEOPLE BOUGHT PANICKED SOLD AND NOW
THE DEBT IS FINDING A MORE PERMANENT HOME HE ANTICIPATES THAT MORETELLING
TREASURY PRICE MOVEMENTS WILL BE DETERMINED BY EMPLOYMENT NUMBERS TO BE
RELEASED MARCH 4 AND THE PRODUCER PRICE INDEX ON MARCH 15

WITH MR GRENSPAN'S TESTIMONY NOW HISTORY MANY TRADERS' ATTENTION IS NOW
FOCUSED ON THIS WEEK'S AUCTIONS THE TREASURY IS SLATED TO SELL 17 BILLION
OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES IN WHENISSUED TRADING
LATE YESTERDAY THE TWOYEAR NOTE YIELDED 458 AND THE FIVEYEAR NOTE
YIELDED 550

MEANWHILE YESTERDAY THE TREASURY SOLD 2461 BILLION OF THREEMONTH AND
SIXMONTH BILLS AT ITS REGUALR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD
AT AN AVERAGE DISCOUNT RATE OF 333 FOR A COUPONEQUIVALENT YIELD OF 341
THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 353 FOR A
COUPONEQUIVALENT YIELD OF 364 HERE ARE THE RESULTS OF THE AUCTION

RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE
VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER
BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR
WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR

BOTH ISSUES ARE DATED FEB 24 THE 13WEEK BILLS MATURE MAY 26 1994 AND
THE 26WEEK BILLS MATURE AUG 25 1994

RH MACY BONDS SAW ACTIVE TRADING IN AN OTHERWISE MOSTLY QUIET DAY IN THE
CORPORATE DEBT MARKET

EARLY YESTERDAY MACY BONDS PLUMMETED IN PRICE BY ABOUT EIGHT POINTS OR
80 FOR A BOND WITH A 1000 FACE VALUE ON THE REPORT IN THE WALL STREET
JOURNAL THAT THE RETAILER WHICH IS IN BANKRUPTCY PROCEEDINGS HAS BEEN
NEGOTIATING A REORGANIZATION PLAN WITH FIDELITY INVESTMENTS AND GENERAL
ELECTRIC CAPITAL SUCH A PLAN LIKELY WOULD CALL FOR FULL REPAYMENT OF
BANKDEBT HOLDERS FEDERATED DEPARTMENT STORES PRUDENTIAL INSURANCE CO OF
AMERICA AND FIDELITY THAT WOULD PROBABLY LEAVE LITTLE VALUE FOR THE
BONDHOLDERS MAKING THE POSSIBILITY OF A CRAMDOWN PLAN AT LEAST
PLAUSIBLE SAID MAX HOLMES HIGHYIELD STRATEGIST AT SALOMON BROTHERS

HOWEVER THE BONDS REVERSED DIRECTION LATER AFTER A MACY ATTORNEY DENIED
THAT A DEAL HAD BEEN STRUCK INVOLVING FIDELITY AND GE CAPITAL THE BONDS
ALSO BENEFITED WHEN THE BANKRUPTCY JUDGE ANNOUNCED THAT HE WOULD APPOINT A
MEDIATOR IN THE PROTRACTED BANKRUPTCY CASE WITH THE MEDIATOR BONDHOLDERS
EXPECT TO BE CONSULTED ON A REORGANIZATION PLAN MAKING AN UNPALATABLE
CRAMDOWN LESS LIKELY THAT WAS WHY THE BONDS TRADED UP FROM LOWS EARLIER IN
THE DAY

TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH SPREADS OVER TREASURYS
WIDENING BY 001 TO 002 PERCENTAGE POINT TRADERS SAID

TELECOMMUNICATIONS COMPANIES' BONDS BARELY REACTED TO NEWS THAT THE FEDERAL
COMMUNICATIONS COMMISSION REWORKED ITS REREGULATION EQUATIONS EFFECTIVELY
CUTTING THE INDUSTRY'S REVENUES BY ABOUT 7 THE NEWS WAS EXPECTED AND MOST
OF IT HAD BEEN PRICED INTO THE MARKET ALREADY SAID ROBERT WALDMAN A
DIRECTOR IN THE CORPORATEBOND RESEARCH DEPARTMENT AT SALOMON BROTHERS

GENERALLY TRADING IN THE JUNK BOND MARKET WAS LIGHT WITH PRICES DOWN BY
ABOUT 1/4 POINT

PRICES OF MUNICIPAL BONDS STABILIZED AFTER DECLINES IN THE PREVIOUS TWO
TRADING DAYS PRICES ENDED UNCHANGED TO 1/2 POINT LOWER

THERE WERE NO BIG SALES YESTERDAY TAXEXEMPT BONDS ARE EXPECTED TO BENEFIT
FROM THE MUNI SUPPLY SCENARIO THIS WEEK

THIS WEEK'S HOLIDAYSHORTENED PRICING LIST CONTAINS LESS THAN 1 BILLION OF
NEGOTIATED ISSUES IN THE WEEK ENDED LATE THURSDAY MORE THAN 2 BILLION OF
NEGOTIATED OFFERINGS WERE PRICED

THE LARGEST ISSUE EXPECTED THIS WEEK IS THE HAWAII HOUSING FINANCE &
DEVELOPMENT CORP'S 269 MILLION OF MORTGAGEPURCHASE REVENUE BONDS A DEAN
WITTER REYNOLDS INC GROUP PLANS TO PRICE THE ISSUE TODAY OR TOMORROW

PRICES OF MORTGAGE SECURITIES ENDED MOSTLY FIRMER AFTER A QUIET SESSION

IN SECONDARY TRADING OF 7 MORTGAGE SECURITIES FOR MARCH DELIVERY
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 100 22/32 2/32
ABOVE FRIDAY'S FINISH THE MARKET WAS CLOSED MONDAY FOR PRESIDENTS DAY
FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE
ASSOCIATION ISSUES FINISHED WITH 3/32 GAINS AT 100 24/32 AND 100 19/32
RESPECTIVELY

NOT ONLY WAS THE SECONDARY MORTGAGE MARKET LISTLESS THERE WAS LITTLE ACTION
TO SPEAK OF IN THE PRIMARY SECTOR NO NEW REAL ESTATE MORTGAGE INVESTMENT
CONDUIT DEALS WERE ANNOUNCED THUS LIMITING THE COLLATERAL DEMAND THAT
TYPICALLY BOOSTS SECONDARY MARKET PRICES 9402230080 940223 INTERNATIONAL
BRIEF UNILEVER NV RESTRUCTURING CHARGE LED TO 10 DROP IN 1993
PROFIT

UNILEVER NV IS TACKLING FIERCE COMPETITION IN THE CONSUMERGOODS MARKET WITH
A MAJOR RESTRUCTURING PROGRAM

AN EXTRAORDINARY RESTRUCTURING CHARGE OF 137 BILLION GUILDERS 7131
MILLION CONTRIBUTED TO A 10 DROP IN THE ANGLODUTCH GROUP'S PROFIT FOR
1993 PROFIT FELL TO 361 BILLION GUILDERS WHILE SALES ROSE SLIGHTLY TO
7763 BILLION GUILDERS

ON THE AMSTERDAM STOCK EXCHANGE UNILEVER'S SHARES SLID 28 TO 22150
GUILDERS 11529

THE COMPANY WHOSE PRODUCTS INCLUDE MAGNUM ICE CREAM POND'S SKIN CREAM AND
OMO DETERGENT SAID IT PLANS TO REDUCE ITS STAFF OF 294000 BY 2 OVER THE
NEXT THREE YEARS THE COMPANY BASED IN ROTTERDAM THE NETHERLANDS ALSO
WANTS TO CUT COSTS FOR PRODUCTION LOGISTICS AND MANAGEMENT IN 60 LOCATIONS
MORE THAN HALF OF THE MEASURES WILL TAKE PLACE IN EUROPE WHILE ABOUT A
THIRD ARE SLATED FOR UNILEVER'S AILING US DETERGENT BUSINESS 9402230079
940223 INTERNATIONAL BRIEF HONDA MOTOR CO PRETAX PROFIT SLUMPED 31 
DURING FISCAL THIRD QUARTER

HONDA MOTOR CO THE JAPANESE AUTOMOBILE AND MOTORCYCLE MAKER REPORTED THAT
ITS CONSOLIDATED PRETAX PROFIT FOR THE OCTOBERDECEMBER QUARTER SLUMPED 31

PRETAX PROFIT WAS 1254 BILLION YEN 1199 MILLION COMPARED WITH 1823
BILLION YEN A YEAR EARLIER

A HONDA SPOKESMAN SAID ITS GROUP EARNINGS FORECAST FOR THE FISCAL YEAR
ENDING MARCH 31 WHICH IT ANNOUNCED IN NOVEMBER REMAINS VALID

WE SEE THAT WE HAVE MADE STEADY PROGRESS TOWARD THE FORECASTED AMOUNTS SO
FAR IN THE FIRST NINE MONTHS HE SAID IN NOVEMBER HONDA SAID ITS
CONSOLIDATED NET PROFIT FOR THE CURRENT FISCAL YEAR WILL TOTAL 173 BILLION
YEN DOWN 55 FROM THE FISCAL 1992 LEVEL WHILE SALES WILL DECLINE 86 TO
3775 TRILLION YEN

THE COMPANY HASN'T RELEASED ITS OUTLOOK FOR FISCALYEAR PRETAX PROFIT AND
EARNINGS PER SHARE 9402230078 940223 BABY BELLS 1 CABLE 0  BY
ALAN GERRY

THE FEDERAL COMMUNICATIONS COMMISSION VOTED YESTERDAY TO FORCE CABLE
TELEVISION OPERATORS TO SLASH THEIR RATES BY AT LEAST 7 FOR SUCH BASIC
SERVICES AS ESPN CSPAN AND CNN COMING AFTER LAST APRIL'S DECISION TO
FORCE A 10 ROLLBACK ON THOSE SAME SERVICES THE FCC'S ACTIONS WILL CUT THE
CASH FLOW OF CABLE COMPANIES IMPEDE IF NOT BLOCK CAPITAL INVESTMENT AND
HASTEN A TREND OF CABLE OPERATORS SELLING OUT TO TELEPHONE COMPANIES

THE COMMISSION'S RULING COULD NOT HAVE COME AT A WORSE TIME JUST AS
TELEPHONE COMPANIES ARE STARTING TO COMPETE IN THE CABLE TELEVISION
MARKETPLACE POLITICAL AND REGULATORY MOMENTUM THE CONVERGENCE OF
TECHNOLOGIES RECENT COURT ACTIONS AND THE ALMOST WEEKLY ANNOUNCEMENTS OF
NEW TELEPHONECABLE MERGERS ALL SUCH SIGNS POINT TO A DAY IN THE NEAR
FUTURE WHEN PHONE COMPANIES WILL BE ALLOWED TO PROVIDE VIDEO INFORMATION AND
ENTERTAINMENT PROGRAMMING WITHIN THEIR SERVICE AREAS

YET THE FCC UNDER PRESSURE FROM CONGRESS TO SET REASONABLE RATES FOR
CONSUMERS CREATED POLICIES THAT WILL ARREST THE CONTINUED DEVELOPMENT OF
THE CABLE INDUSTRY AND EVENTUALLY IMPAIR THE INDUSTRY'S ABILITY TO PROVIDE
SERVICE TO CUSTOMERS

THE TELEPHONE COMPANIES MEANWHILE WILL BE UNDER NO SUCH RESTRICTIONS THEY
HAVE ALREADY DEMONSTRATED AN ABILITY TO DOMINATE ANY COMMUNICATIONS MARKET
THEY ENTER IN THE PAST DECADE FOR EXAMPLE PHONE COMPANIES HAVE ACQUIRED
MOST OF THE INDEPENDENT CELLULAR TELEPHONE OUTFITS A SIMILAR PHENOMENON
COULD OCCUR ALONG THE INFORMATION SUPERHIGHWAY UNLESS THE CABLE TV FIRMS
GET SOME RELIEF FROM THE FCC'S FLOOD OF REGULATIONS NO OTHER BUSINESS ON
THE HORIZON HAS THE ABILITY TO SERVE AS COMPETITION TO THE TELEPONE
COMPANIES AND HENCE TO PRESERVE A COMPETITIVE MARKETPLACE

EVEN BEFORE YESTERDAY'S RULING CABLE COMPANIES WERE AT A DISADVANTAGE IN
THE RACE DOWN THE INFORMATION SUPERHIGHWAY THE SEVEN REGIONAL BELL
OPERATING COMPANIES AND GTE HAD COMBINED REVENUES IN 1992 OF 1023 BILLION
AND NET INCOME OF 111 BILLION BY CONTRAST THE EIGHT LEADING PUBLICLY
HELD CABLETV COMPANIES REPORTED 1992 REVENUES OF 6 BILLION AND A NET LOSS
OF 600 MILLION THE TELEPHONE COMPANIES MADE DIVIDEND PAYMENTS IN 1992 OF
MORE THAN 79 BILLION COMPARED WITH 30 MILLION IN DIVIDEND PAYMENTS BY
THE EIGHT CABLE COMPANIES

CABLEVISION INDUSTRIES CORP IS THE EIGHTHLARGEST CABLE TELEVISION OPERATOR
IN THE COUNTRY BUT CONSIDER HOW OUR COMPANY MEASURES UP AGAINST THE
EIGHTHLARGEST TELEPHONE COMPANY PACIFIC TELESIS FOR 1994 WE HAVE BUDGETED
501 MILLION IN REVENUES 238 MILLION IN OPERATING CASH FLOW AND 55
MILLION IN NET LOSSES BEFORE TAXES ON THE OTHER HAND PAC TEL'S 1993
RESULTS SHOWED 9 BILLION IN REVENUES 4 BILLION IN OPERATING CASH FLOW AND
NET INCOME OF 12 BILLION WHILE CVI HAS NEVER PAID A DIVIDEND PAC TEL
DECLARED 880 MILLION IN DIVIDENDS FOR 1992

THE FCC IS CONTRIBUTING TO THE RED INK IN OUR INDUSTRY CABLE REGULATION AND
THE RATE FREEZE HAVE ALREADY REDUCED CABLE TELEVISION REVENUES BY 2
BILLION ACCORDING TO A STUDY BY PAUL KAGAN ASSOCIATES INC BY IMPOSING
FURTHER CUTS IN CABLE TV RATES THE FCC IS EFFECTIVELY GUARANTEEING
CONTINUED LOSSES FOR OUR INDUSTRY WHILE PERMITTING OUR TELEPHONE COMPANY
COMPETITORS TO GENERATE MASSIVE PROFITS

REREGULATION WILL ONLY TILT THE PLAYING FIELD FURTHER IN THE PHONE
COMPANIES' FAVOR IF CONGRESS AND THE FCC PERSIST IN INFLICTING ECONOMIC
HARM ON THE CABLE INDUSTRY THEY MAY BE PICKING THE WINNER OF THE ECONOMIC
CONTEST NOW

JOBS ARE AT STAKE HERE THE CABLE TV INDUSTRY HAS CREATED MORE THAN 130000
JOBS DIRECTLY WHILE INDIRECTLY EMPLOYING THOUSANDS MORE IN RELATED
INDUSTRIES SUCH AS EQUIPMENT VENDING MANUFACTURING AND PROGRAMMING CABLE
TV IS ALREADY OPERATING IN A VERY EFFICIENT MANNER WE HAVE AN AVERAGE OF 22
EMPLOYEES PER 10000 SUBSCRIBERS COMPARED TO THE TELEPHONE INDUSTRY AVERAGE
OF 38 WORKERS PER 10000 ACCESS LINES IN RECENT MONTHS THE BABY BELLS AND
GTE HAVE IMPOSED MASSIVE LAYOFFS APPROACHING 100000 JOBS ALMOST EQUAL TO
THE NUMBER OF JOBS IN THE ENTIRE CABLE INDUSTRY THE PHONE COMPANIES ALSO
HAVE ANNOUNCED PLANT CLOSINGS AS THEY PREPARE TO USE THE EXTRA PROFITS FROM
THESE LAYOFFS TO ENTER NEW MARKETS

FORCING THE CABLE COMPANIES TO SELL OUT TO THESE COMPETITORS WILL NOT
PROMOTE THE SORT OF JOB CREATION AND ECONOMIC GROWTH ENVISIONED BY THE
CLINTON ADMINISTRATION INSTEAD THE FCC'S ACTIONS WILL IMPEDE THE EXPANSION
OF THE EXISTING BROADBAND COMMUNICATIONS INFRASTRUCTURE AND POSTPONE THE DAY
WHEN THE INFORMATION SUPERHIGHWAY ENVISIONED BY THE ADMINISTRATION BECOMES A
REALITY

IF CABLE TELEVISION IS TO BE REGULATED WE NEED REGULATION THAT WILL ALLOW
OUR FIRMS TO GROW COMPETE AND THRIVE AS INDEPENDENT BUSINESSES NOT RULES
THAT WILL ESCORT US TO THE EXIT DOORS OF THE COMMUNICATIONS MARKETPLACE

MR GERRY IS FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OF CABLEVISION INDUSTRIES
CORP IN LIBERTY NY 9402230077 940223 POLITICS & POLICY ESPIONAGE
CASE AGAINST CIA OFFICIAL AND WIFE INDICATES SPIRIT OF KGB SURVIVED SOVIET
BREAKUP  BY JOHN J FIALKA AND THOMAS E RICKS STAFF REPORTERS OF
THE WALL STREET JOURNAL

WASHINGTON LAST FALL WHEN ALDRICH AND ROSARIO AMES ARRIVED IN THEIR
JAGUAR TO ATTEND PARENTS' NIGHT AT THEIR SON'S PRIVATE SCHOOL THEY MUST
HAVE SEEMED LIKE MANY OF THE OTHER PROSPEROUS MIDDLEAGED PARENTS IN
ATTENDANCE

BUT US INVESTIGATORS SAY INSTEAD OF RETURNING TO THEIR 500000 HOME IN
A NORTHERN VIRGINIA SUBURB THE CENTRAL INTELLIGENCE AGENCY OPERATIVE WHO
ONCE RAN SOVIET COUNTERINTELLIGENCE OPERATIONS AND HIS COLOMBIANBORN WIFE
CRUISED INTO WASHINGTON DC AND PULLED INTO A CULDESAC THEY WERE
LOOKING FOR A SIGNAL LEFT ON A MAILBOX THAT WOULD LET THEM KNOW WHETHER
TOPSECRET INTELLIGENCE MR ALDRICH HAD EARLIER LEFT IN A DEAD DROP HAD
BEEN PICKED UP BY HIS RUSSIAN CONTACTS THE INVESTIGATORS SAY

THOUGH IT SOUNDS LIKE SOMETHING OUT OF A NOVEL BY JOHN LE CARRE IT'S IN
FACT A POSTCOLD WAR ESPIONAGE CASE WITH WIDE IMPLICATIONS PRESIDENT
CLINTON YESTERDAY CALLED THE CASE AGAINST THE AMESES WHO WERE ARRESTED ON
ESPIONAGE CHARGES MONDAY VERY SERIOUS AND SAID IT WILL ADD STRAIN TO THE
EVOLVING RELATIONSHIP WITH RUSSIA FOR MR AMES NOT ONLY SPIED FOR THE KGB
FOR MORE THAN FIVE YEARS ACCORDING TO A CRIMINAL COMPLAINT FILED YESTERDAY
BUT WAS ALSO AN AGENT OF THE RUSSIAN FEDERATION FOREIGN INTELLIGENCE
SERVICE THE KGB'S SUCCESSOR THE AMESES EACH FACE LIFE IMPRISONMENT AND
250000 FINES

THE CLINTON ADMINISTRATION YESTERDAY PRESSED MOSCOW TO WITHDRAW A NUMBER OF
RUSSIAN DIPLOMATS IN WASHINGTON WHO ARE IMPLICATED IN THE AMES AFFAIR
ACCORDING TO ADMINISTRATION OFFICIALS THE RUSSIANS WHO WERE INVOLVED WILL
BE EXPELLED IF MOSCOW DOESN'T REPATRIATE THEM

A HIGHLY DETAILED 40PAGE GOVERNMENT AFFIDAVIT FILED IN CONNECTION WITH THE
CASE AND RELEASED BY THE JUSTICE DEPARTMENT DISCLOSES THAT MR AMES MET WITH
HIS RUSSIAN CONTACTS AS RECENTLY AS NOVEMBER WHILE NO ONE WAS SO NAIVE AS
TO ASSUME THAT THE US AND RUSSIANS HAD DISMANTLED THEIR ELABORATE SPYING
CAPABILITIES THE AMES CASE COMES AT A SENSITIVE JUNCTURE IN THE
ADMINISTRATION'S CAMPAIGN TO KEEP US AID FLOWING TO ECONOMICALLY
BELEAGUERED RUSSIA

MR AMES 52 YEARS OLD WORKED FOR THE CIA SINCE 1962 AND ROSE TO BECOME
CHIEF OF THE AGENCY'S SOVIET COUNTERINTELLIGENCE BRANCH FROM 1983 TO 1985
IN THAT CAPACITY HE WAS PRIVY TO AN ARRAY OF TOP SECRET DOCUMENTS AND HAD
EXTENSIVE KNOWLEDGE OF THE US GOVERNMENT'S ESPIONAGE ACTIVITIES INSIDE THE
SOVIET UNION INCLUDING THE IDENTITIES OF INTELLIGENCE AND
COUNTERINTELLIGENCE OPERATIVES SINCE THE MID1980S THE CIA HAS SUSPECTED
THAT THERE WAS A MOLE WORKING INSIDE THE AGENCY AND WORRIED THAT THE
IDENTITIES OF SEVERAL AGENTS INCLUDING A SOVIET OFFICIAL WORKING SECRETLY
FOR THE US HAD BEEN COMPROMISED MR AMES AND HIS WIFE WHOSE FULL NAME
IS MARIA DEL ROSARIO CASAS AMES HAVE BEEN UNDER GOVERNMENT SURVEILLANCE FOR
TWO YEARS

IT WAS UNCLEAR WHAT TIPPED THE GOVERNMENT OFF BUT ITS AFFIDAVIT INDICATED
THE AMESES' LAVISH SPENDING CLEARLY OUTPACED MR AMES'S GOVERNMENT SALARY OF
LESS THAN 70000 THE AFFIDAVIT SAYS THAT THE 40000 JAGUAR FOR EXAMPLE
WAS PURCHASED WITH A 25000 CASH DOWN PAYMENT THAT VARIOUS CREDITCARD
BALANCES BALLOONED TO MORE THAN 500000 THAT SECURITIES ACCOUNTS AT MORGAN
STANLEY & CO AND PIERPONT FUNDS CONTAINED MORE THAN 165000 IN STOCKS
THAT THE PRICE OF THEIR ARLINGTON VA HOME WHICH THEY BOUGHT IN 1989 WAS
540000 AND THAT THE COUPLE SPENT 100000 ON HOME IMPROVEMENTS THE
GOVERNMENT FURTHER SAYS THAT THE AMESES WHO WERE MARRIED IN 1985 ALSO
PURCHASED TWO CONDOMINIUMS AND A FARM IN COLOMBIA ROSARIO AMES'S NATIVE
COUNTRY THERE WAS ALSO A STREAM OF UNEXPLAINED BANK DEPOSITS THE
GOVERNMENT SAYS

IN ALL THE GOVERNMENT SAYS THE AMESES RECEIVED MORE THAN 15 MILLION IN
PAYMENTS FROM THE SOVIETS AND RUSSIANS FROM 1985 TO THE FALL OF 1993

THE CIA ANALYZED A STRING OF OPERATIONS THAT HAD TURNED SOUR LOOKING FOR
THE COMMON DENOMINATOR SAID AN OFFICIAL FAMILIAR WITH THE ANALYSIS THIS
GUY ROSE TO THE TOP OF THE CLASS

MOREOVER INVESTIGATORS SECURED INFORMATION FROM INTELLIGENCE SOURCES FROM
THE FORMER SOVIET BLOC THAT POINTED TO MR AMES'S ALLEGED WORK ON BEHALF OF
MOSCOW ACCORDING TO PERSONS FAMILIAR WITH THE CASE INFORMATION FROM
EXSOVIET BLOC INFORMANTS WAS A VERY IMPORTANT FACTOR SAID ONE
LAWENFORCMENT OFFICIAL INVOLVED IN THE CASE

STANISLAV LEVCHENKO A KGB AGENT WHO DEFECTED IN LATE 1979 SAYS THAT THE
ULTIMATE COUP WITHIN THE SOVIET SPY AGENCY WAS TO BE ABLE TO RECRUIT
SOMEBODY IN US COUNTERINTELLIGENCE TO RECRUIT SUCH A PERSON IS THE
ULTIMATE SUCCESS BECAUSE IT NEUTRALIZES THE EFFORTS OF MANY THOUSANDS OF
PEOPLE AND MILLIONS OF DOLLARS SPENT ON SPY OPERATIONS USUALLY IN MANY
CASES SUCH KNOWLEDGE PERMITS THEM THE RUSSIANS TO NEUTRALIZE THE EFFORTS OF
A FOREIGN COUNTRY THEY CAN ALSO DEFLECT THEM BY FEEDING BACK FALSE
INFORMATION

MR LEVCHENKO SAYS THAT THE KGB WAS SPLIT UP INTO TWO GROUPS AFTER THE
BREAKUP OF THE SOVIET UNION ONE WAS INTERNAL SECURITY THE SECOND IS THE
RUSSIAN FEDERATED INTELLIGENCE SERVICE THE RUSSIANS HAVE ANNOUNCED THAT 20
OLD KGB OFFICES ABROAD WERE CLOSED BUT MR LEVCHENKO SAYS HE BELIEVES THEY
WERE ABLE TO KEEP THE SAME ESPIONAGE EFFORT IN THE US BY SWITCHING PEOPLE
FROM THE CLOSED OFFICES MAINLY IN AFRICA I STRONGLY BELIEVE THAT THE
FORCE WHICH IS WORKING AGAINST THIS COUNTRY IS AS BIG AS IT WAS BEFORE AND
IS PROBABLY AS EFFECTIVE SAYS MR LEVCHENKO

THE GOVERNMENT SUSPECTS THAT MR AMES WHO WORKED FOR THE CIA IN TURKEY NEW
YORK MEXICO CITY AND ROME AS WELL AS SEVERAL STINTS AT CIA HEADQUARTERS IN
LANGLEY VA TURNED OVER VAST AMOUNTS OF SENSITIVE MATERIAL TO HIS SOVIET
AND RUSSIAN MASTERS

BRENT SCOWCROFT FORMER PRESIDENT BUSH'S NATIONAL SECURITY ADVISER CALLS
THIS CASE EXTREMELY IMPORTANT  MY IMPRESSION IS THIS GUY DID A LOT OF
DAMAGE HE'S BEEN IN PLACE FOR A LONG TIME MR SCOWCROFT SAYS THAT WHEN
THE BUSH ADMINISTRATION LEFT OFFICE THERE WERE SUSPICIONS OF SUCH A MOLE

WHEN KGB AGENT VITALY YURCHENKO DEFECTED TO THE US IN 1985 ONE OF HIS
DEBRIEFERS WAS ALDRICH AMES SAID RONALD KESSLER AUTHOR OF INSIDE THE CIA
AND SEVERAL OTHER BOOKS ON INTELLIGENCE OPERATIONS HERE WAS ONE OF THE TOP
KGB DEFECTORS SPILLING OUT HIS GUTS AND IT WAS ALL GOING BACK TO THE KGB
MR KESSLER SAYS MR YURCHENKO SUBSEQUENTLY FLED FROM HIS CIA HANDLERS
WHILE DINING AT AU PIED DU COCHON A GEORGETOWN RESTAURANT AND REDEFECTED
TO THE SOVIETS

IN JUNE AGENTS SEARCHED MR AMES'S OFFICE AT LANGLEY AND FOUND A CACHE OF
CLASSIFIED DOCUMENTS MANY STAMPED TOP SECRET UNRELATED TO MR AMES'S
ASSIGNMENT AT THE TIME IN ANTINARCOTICS EFFORTS THEY CONCERNED HIGHLY
SENSITIVE INTELLIGENCE COUNTERINTELLIGENCE AND MILITARY INFORMATION ABOUT
THE RUSSIAN FEDERATION OR THE SOVIET UNION

THE AFFIDAVIT SAYS MR AMES'S SPYING ACTIVITIES MAY HAVE BEGUN AS EARLY AS
MARCH 1984 WHEN HE WAS AUTHORIZED BY THE CIA TO MEET WITH SOVIET OFFICIALS
AT THEIR EMBASSY IN WASHINGTON IN AN EFFORT IRONICALLY TO RECRUIT THEM AS
INTELLIGENCE SOURCES FOR THE US HE WAS SUPPOSED TO REPORT ALL SUCH
CONTACTS TO HIS SUPERIORS BUT BEGAN HAVING SECRET UNREPORTED MEETINGS IN
THE MID1980S THE AFFIDAVIT SAYS

BY 1986 UNEXPLAINED CASH DEPOSITS BEGAN APPEARING IN THE AMESES' VIRGINIA
BANK ACCOUNTS THE AFFIDAVIT SAYS ACCORDING TO ELECTRONIC SURVEILLANCE OF
THE AMESES' BANKING RECORDS AUTHORIZED BY ATTORNEY GENERAL JANET RENO THE
COUPLE ALSO OPENED BANK ACCOUNTS IN SWITZERLAND AND VENEZUELA AND AN
ADDITIONAL SWISS ACCOUNT WAS OPENED IN THE NAME OF ROSARIO'S MOTHER WHO
LIVES IN COLOMBIA WIRE TRANSFERS OF MORE THAN 1 MILLION WERE MADE FROM THE
SWISS ACCOUNTS TO OTHER BANK ACCOUNTS CONTROLLED BY THE AMES FAMILY ALL OF
IT THE GOVERNMENT ALLEGES WITH PROCEEDS FROM THE AMESES' SPYING
ACTIVITIES

THE GOVERNMENT SAYS WIRETAPS PLACED INSIDE THE AMES HOME AND AT MR AMES'S
OFFICE DISCLOSED MORE EVIDENCE OF THE SECRET ACTIVITIES OF THE
NONDESCRIPTLOOKING GOVERNMENT WORKER WHO HAS GLASSES AND A MOUSTACHE
THERE WERE TRIPS TO SOUTH AMERICA TO MEET HIS RUSSIAN CONTACTS ONE AS
RECENT AS OCTOBER THE GOVERNMENT SAYS A TYPEWRITER RIBBON THAT
INVESTIGATORS RETRIEVED FROM MR AMES'S TRASH SHOWED THAT THE CIA OFFICIAL
WAS TRYING TO ARRANGE SOME SAFER PAPER TRANSFER OF SOME SORT OF A LARGE
SUM DURING A TRIP TO CARACAS INVESTIGATORS SAID A JUNE 1992 MESSAGE
RETRIEVED FROM MR AMES'S COMPUTER DEMANDED THAT HIS RUSSIAN HANDLER PLACE
100000 IN CASH IN A DESIGNATED DROP AND SAID HIS CASH FLOW WAS A VERY
TIGHT AND UNPLEASANT SITUATION

IF THE AMESES STRUCK THEIR NEIGHBORS WHO THOUGHT MR AMES WORKED FOR THE
FOREIGN SERVICE AS AN AVERAGE SUBURBAN COUPLE MANY OF THE CONVERSATIONS
CONTAINED IN THE AFFADAVIT DO SEEM RATHER MUNDANE FOR SUCH A HIGHPOWERED
SPY COUPLE IN ONE ALDRICH OR RICK AS ROSARIO CALLS HIM SAYS HE HADN'T
CHECKED THE SIGNAL ON A DROP SITE BECAUSE IT WAS RAINING WHY DIDN'T YOU DO
IT TODAY FOR GOD'S SAKES HIS WIFE GRIPES ADDING I HOPE YOU DIDN'T SCREW
UP IN ANOTHER CONVERSATION ABOUT HIS TRIP TO BOGOTA ROSARIO URGES RICK TO
BE MORE IMAGINATIVE ABOUT HOW HE STOWS HIS SECRET DOCUMENTS YOU ALWAYS
HAVE THIS ENVELOPE WITH THIS BIG HUNK SHE HUFFS I MEAN REALLY

JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9402230076 940223 DISAPPEARING
ACT WEST PLEDGED BILLIONS OF AID TO POLAND  WHERE DID IT ALL GO 
 NOT MOSTLY TO THE POLES THE ADVISERS GOT SOME SOME WAS NEVER
SENT  LEND TO BUSINESS TOO RISKY  BY BARRY NEWMAN STAFF
REPORTER OF THE WALL STREET JOURNAL

WARSAW THE IDEA WAS TO DO IT FAST TO DO IT CHEAP TO MAKE IT PAY AND TO
MAKE IT STICK DESIGNED AND UNDERWRITTEN IN THE WEST THE RESTORATION OF
CAPITALISM IN EASTERN EUROPE WOULD BE IN 1990 RHETORIC THE TASK AND THE
TRIUMPH OF THE CENTURY BUSINESSPEOPLE WERE GOING TO PUT THE VICTIMS OF
COMMUNISM BACK INTO BUSINESS

PEOPLE LIKE BARBARA LUNDBERG SHE WAS 36 IN 1989 A WHARTON MBA AND A
FORMER VICE PRESIDENT AT KIDDER PEABODY & CO NOW SHE'S AT WORK IN THE OLD
CENTRAL COMMITTEE BUILDING OF POLAND'S COMMUNIST PARTY RUNNING THE US
GOVERNMENT'S FUND FOR REINVENTING THE ENTERPRISE CULTURE I KNEW NOTHING
ABOUT POLAND SHE SAYS I WANTED TO GET BACK INTO VENTURE CAPITAL

BARBARA LUNDBERG IS NO AID WORKER BUT WHEN THE WEST RECRUITED AN ARMY TO
MOP UP AFTER THE COLD WAR IT DIDN'T WANT AID WORKERS IT WANTED A CORPS OF
CORPORATE ROLE MODELS CONSULTANTS BANKERS AND ENTREPRENEURS TO CLINCH
A FRIENDLY TAKEOVER WITH NO NEW ENEMY SHAKING ITS MISSILES AT EUROPE
WESTERN LEADERS WERE CONVINCED THAT BUSINESS WOULD SOON BOOM AND PROSPERITY
BLOOM THE COMMUNISTS WOULD NEVER BE SEEN AGAIN

BY EARLY 1993 THE 24 RICHEST NATIONS OF THE WEST HAD MADE PAPER PLEDGES OF
70 BILLION TO EAST EUROPEAN COUNTRIES FROM ESTONIA TO ALBANIA POLAND ALONE
GOT A CHIT FOR 25 BILLION

WHAT HAPPENED TO IT FAIR QUESTION GIVEN THAT THE WEST NOW MUST DECIDE
WHETHER TO TOSS BILLIONS MORE INTO RUSSIA'S MAELSTROM

THE ANSWER IS DISCOURAGING AID HAS BEEN FIRED LIKE SCATTERSHOT AT A
FLITTING BIRD REPLACING COMMUNISM WITH CAPITALISM HAS BEEN FAR TRICKIER
THAN THE BRICKSANDMORTAR SALVAGING OF POSTWAR EUROPE MANY AID DOLLARS
BENEFIT DONORS MORE THAN DONEES AND MANY LADEN WITH CONDITIONS SIT
UNUSED

SKIMPIER IN QUANTITY AND QUALITY THAN IT APPEARS WESTERN AID HASN'T DONE
ENOUGH TO PROMOTE MASS ENTERPRISE OR ALLAY MASS POVERTY THE MARKET
MACHINERY IT IS HELPING TO INSTALL IN MANY COUNTRIES HASN'T PROVIDED THE
POLITICAL BREATHING SPACE TO PREVENT THE RISE OF A NATIONALIST RIGHT OR A
SOCIALIST LEFT

POLAND OUGHT TO BE AID'S SHOWCASE FIRST TO REVOLT THIS COUNTRY GOT MORE
CARE AND WAS PROMISED MORE CASH THAN ANY OTHER PLACE IN THE OLD EAST BLOC
BESIDES RUSSIA ITSELF BY EARLY 1990 IT HAD GLADLY MET THE BRUTAL ECONOMIC
AUSTERITY THAT RUSSIA STILL RESISTS POLAND FREED PRICES CHECKED INFLATION
BEAT RECESSION

YET THE WEST RELUCTANT TO GIVE HANDOUTS OR TAKE BIG RISKS HAS WITHHELD
LARGESCALE AID TO THE SMALL BUSINESSES THAT ARE FUELING POLAND'S
TRANSFORMATION MILLIONS GO IT ALONE NOR DID THE WEST CHANNEL AID TO MAKE
LIFE ANY EASIER FOR MILLIONS MORE AS UNEMPLOYMENT SHOT UP TO 16 WELFARE
CRUMPLED AND LIVING STANDARDS COLLAPSED

THE BOTTOM LINE THE WEST HAS BEEN STINGY STRIP OUT CANCELED DEBT PLUS
LOANS AND GRANTS THAT GO UNDISPERSED AND PURE GIFTS TO POLAND COME TO UNDER
10 OF THE 25 BILLION TOTAL WHEN A HIGHWAY COSTS 4 BILLION AND CLEANING
THE AIR 50 BILLION POLES CAN FEEL ROOKED

THE IMPACT CAME CLEAR LAST SEPTEMBER THREE MONTHS BEFORE THE RUSSIANS GAVE
A SHOCKING ELECTION VICTORY TO THE FAR RIGHT THE POLES VOTED IN THE OLD
LEFT FORMER COMMUNISTS RUN THE GOVERNMENT TODAY AND HOLD AS MANY SEATS IN
PARLIAMENT AS THEY DID AFTER THE RIGGED 1989 ELECTION

NOT EVERY WESTERN CENT HAS GONE FOR NAUGHT OF COURSE PLENTY OF POLISH
BUSINESSES AND BUREAUCRACIES HAVE GAINED FROM IT WHILE ACKNOWLEDGING THIS
THOUGH MANY POLES HAVE COME TO FEEL THAT AID HAS PLAYED ONLY A BIT PART IN
THEIR ESCAPE TO CAPITALISM WITH OR WITHOUT ASSISTANCE WE WOULD HAVE BEEN
ABLE TO START REFORMS AND REACH THE POINT WE'RE AT NOW SAYS PAWEL SAMECKI
WHO RUNS POLAND'S OFFICE FOR TRACKING WESTERN GRANTS IT'S AN ILLUSION THAT
FOREIGN AID IS CHANGING THE ECONOMIC SITUATION IN THE EAST

THE ILLUSION HAD A JOYOUS BIRTH ON NOV 15 1989 LECH WALESA NOT YET
POLAND'S PRESIDENT WAS THE FIRST PRIVATE CITIZEN TO ADDRESS A JOINT SESSION
OF THE US CONGRESS IN 165 YEARS RECALLING STALIN'S REFUSAL TO LET POLAND
TAKE PART IN THE MARSHALL PLAN HE SAID NOW IS THE MOMENT WHEN EASTERN
EUROPE AWAITS AN INVESTMENT OF THIS KIND  AN INVESTMENT ADEQUATE TO THE
GREATNESS OF THE AMERICAN NATION

CHEERS AND APPLAUSE STOPPED HIM 24 TIMES CONGRESS SWIFTLY VOTED POLAND AND
HUNGARY FOUR TIMES WHAT PRESIDENT GEORGE BUSH HAD ASKED

WE ALL STARTED WITH TREMENDOUS OPTIMISM SAYS A MANAGER AT ONE AID AGENCY
THRILLED BY THE POTENCY OF POLAND'S 1990 PRICE SHOCK WESTERN GOVERNMENTS
EXPECTED A TORRENT OF PRIVATE CAPITAL TO WASH AWAY COMMUNISM'S SLOPS NOBODY
KNEW THAT THE WHOLE SYSTEM FROM COURTS TO BANKS HAD TO BE SCRUBBED OUT
BEFORE THIS TIDAL WAVE ROSE

NOBODY KNEW MUCH OF ANYTHING BECAUSE THEY ASSUMED THE MARKET WOULD DO THE
WORK THE INDUSTRIALIZED WORLD'S DONOR NATIONS AND AID INSTITUTIONS NEVER
SET UP A THINK TANK OR COMMAND CENTER TO COORDINATE AID TO THE EAST THEIR
PURPOSE WAS IN PART POLITICAL TO PUT ON AN EXTRAVAGANT SHOW AND BUY A
QUICK FIX

AID AGENCIES WERE OUT TO PRODUCE A LAISSEZFAIRE ECONOMY AT GREAT SPEED
SAYS A WESTERN CONSULTANT

BREATHLESS PROMISES HOWEVER PRODUCED WINDED DELIVERIES AID WAS NOT ONLY
POORLY THOUGHT THROUGH THERE WAS LESS OF IT THAN THE POLES WERE LED TO
BELIEVE AND IT TOOK FOREVER TO GET HERE

EVEN LOANS ARRIVE BY SLOW BOAT THE EUROPEAN BANK HAS DISPENSED JUST 15 OF
600 MILLION IT PLEDGED TO POLISH VENTURES THE WORLD BANK AND OTHERS HAVE
COMMITTED THEMSELVES TO LENDING 85 BILLION FOR TELEPHONES AND GAS FIELDS
AND RAILROADS THE POLES ESTIMATE THAT 1 BILLION OF IT HAS BUDGED UNDER
CONDITIONS ATTACHED BY DONORS MORE THAN HALF THE COUNTRY'S POTENTIAL
CREDITS MUST BE SPENT ON WESTERN EXPORTS FROM CORN TO ECONOMISTS A
PRACTICE CALLED TIED AID LONG FROWNED ON IN THE THIRD WORLD

THE WEST'S MORE GENEROUS GRANTS DON'T COME ANY FASTER OF 1 BILLION
PROMISED BY THE EUROPEAN UNION THE FORMER EUROPEAN COMMUNITY 30 HAS
ARRIVED ANOTHER 85 BILLION ISN'T FRESH MONEY AT ALL IT CANCELS DEBT THAT
WESTERN BANKS PUMPED INTO POLAND 20 YEARS AGO AN UNUSED 1 BILLION FUND
MEANT TO STEADY THE ZLOTY IS STILL IN LIMBO INSTEAD OF BEING DISTRIBUTED AS
AGREED TO POLAND'S BANKS

EXCUSES FOR THE DELAYS ABOUND ON BOTH SIDES PAPERWORK HOLDS UP EVERYTHING
DUE AS MUCH TO RUSTY COMMUNIST LAWS AS TO WESTERN FEARS OF REAL OR IMAGINED
FRAUD THE WORLD BANK MAKES CREDITS CONDITIONAL ON PROGRESS IN REFORMS
POLISH STATE COMPANIES DECLINE LOANS THEY DEARLY NEED BUT FEAR THEY CAN'T
HANDLE

BUT IF THERE IS ONE THING THE WEST HAS DELIVERED QUICKLY AND IN ABUNDANCE
IT'S ADVICE

REVOLUTION WAS STILL ROLLING ACROSS EASTERN EUROPE WHEN THE WEST'S ADVISERS
BEGAN POURING INTO WARSAW THEY ENTERED A WORLD NONE OF THEM KNEW AND TOOK
ON JOBS NO ONE COULD TELL THEM HOW TO DO IN HINDSIGHT MUCH OF THEIR WORK
SEEMS NAIVE WHEN THEIR ADVICE WAS ON TARGET POLES NUMBED BY COMMUNISM
OFTEN DIDN'T TAKE IT BUT NOTHING HAS STOPPED THE ADVISERS FROM CHARGING
THEIR USUAL FEES PAID FOR BY WESTERN AID AND HELPING THEMSELVES AT LEAST
AS MUCH AS THEY HAVE HELPED POLAND

HE QUIT HIS JOB AND FLEW TO WARSAW IN MAY 1990 FOUND SOME BRITISH AND
AMERICAN AID MONEY AND STARTED RIDING THE RAILS NOBODY HAD SEEN THE
INSIDE OF A POLISH FACTORY BEFORE HE SAYS OR AT LEAST NOT MANY LIKE HIM
HE VISITED 350 AND SOON WON AN AID CONTRACT TO STOP THE BLEEDING AT 20 OF
THEM

HE ASKED FACTORY MANAGERS WHAT DO YOU NEED THE REPLY YOU TELL US

A YEAR LATER MR BUCKLEY AND TWO PARTNERS OPENED A CONSULTING FIRM COMPANY
ASSISTANCE LTD WITH AN IRISH OFFICE TO TAP THE VEIN OF GRANTS FROM THE
EUROPEAN UNION CAL HIRED 35 STAFFERS MOSTLY AMERICANS BETWEEN COLLEGE AND
BUSINESS SCHOOL THEY PILED FILE BOXES INTO THE TOP FLOOR OF A STUDENT
RESIDENCE AND GOT DOWN TO SCRAMBLING FOR WORK AGAINST AN ARMADA OF
ADVICESPOUTERS FROM THE REST

THE TIDE WASHED IN 143 US AGENCIES THE DEPARTMENT OF LABOR THE
SECURITIES AND EXCHANGE COMMISSION FANNIE MAE AIDPAID ADVISERS FROM THE
US AND THE EU TELL POLES HOW TO GRADE MEAT TAX POWER BURN BIOBRIQUETTES
PLUG INTO EMAIL THEY EXPLAIN HOW TO CONFRONT XENOPHOBIA STANDARDIZE
MEASUREMENTS RUN PARLIAMENTS

PACKING 500 POLES INTO A ROOM FOR A SLIDE SHOW IN ENGLISH ON
GARMENTINDUSTRY MACROECONOMICS IS ONE WAY TO SCATTER ADVICE ANOTHER WAY IS
TO WRITE A REPORT ADVANCING THE TRANSITION FROM COMMUNIST DOUBLETALK TO
CAPITALIST TECHNOSPEAK

THE NAMES OF EU ADVISORY PROGRAMS READ LIKE A LIST OF LATEMODEL CARS
TEMPUS FIESTA SIERRA THEIR JARGONLADEN REPORTS FAVOR THINGS LIKE
RESTRUCTURING SECTORAL COMPONENT SYSTEMS WITH MARKETORIENTED FINANCING
MECHANISMS IN HORIZONTAL INSTITUTIONAL FRAMEWORKS OF COMPETITIVE STRUCTURAL
SOLUTIONS

IGNORANCE WAS NO OBSTACLE TO CONSULTANTS HIRED TO RESCUE AND SELL STATE
INDUSTRY AN EU ADVISER CAN MAKE 1200 A DAY BRUSSELS AWARDED 546
CONTRACTS WORTH 286 MILLION IN 1991 POLISH CONSULTANTS GOT HALF A PERCENT
OF THAT YET A LONDON ADVISER FIGURES 80 OF HIS FIRM'S EASTERN REVENUE
COMES FROM AID AGENCIES

ALONG WITH EVERY OTHER FIRM WORKING IN POLAND CAL FIRST EXPECTED TO PARLAY
THE AID MONEY IT GOT FOR REVIVING STATE COMPANIES INTO SUCCESS FEES FOR
FLUSHING OUT WESTERNERS TO BUY THEM BUT RIVALS PLUCKED PLUMS LIKE THE
SOAPPOWDER INDUSTRY WITH ITS READYMADE DOMESTIC MARKET FOR THE 28
MACHINETOOL AND 35 SHOE COMPANIES THAT CAL HAS TRIED TO FLOG IN ENDLESS
CALLS TO THE WEST NOT A SINGLE BID HAS COME IN

TO COMPOUND HIS FRUSTRATIONS MANY AN UNATTRACTIVE POLISH COMPANY HAS
SLAMMED THE RECEIVER ON HIS CONSULTANTS CAL FOR EXAMPLE WROTE A REPORT
FOR HYDOMAT ONE OF ITS LESSHOPELESS MACHINETOOL CLIENTS THE REPORT WAS
FULL OF IDEAS TO CLEAR THE WAY FOR PRIVATIZATION WHETHER OR NOT THE ADVICE
WAS GOOD BECAME A MOOT POINT ALONG WITH MANY ANOTHER CONSULTANT'S REPORT IN
POLAND THIS ONE NEVER FOUND A READER

THE GROUND FLOOR OF HYDOMAT'S SULLEN OFFICE ON WARSAW'S EDGE DISPLAYS A
SMALL SIGN OF CAL'S INSPIRATION A TRADER HAS RENTED IT AS A SHOWROOM FOR
GERMAN DESKS AND EXECUTIVE CHAIRS UPSTAIRS THOUGH THE FURNITURE IS
STRICTLY STALINIST THE NEW GOGETTER MR BUCKLEY THOUGHT HE WAS WORKING
WITH IS GONE MIROSLAW PADUCH IN THE OLD GUARD'S NAME HAS RETAKEN THE
DIRECTOR'S OFFICE

THE WORKERS' COUNCIL FIRED THE PREVIOUS MANAGEMENT HE SAYS DOESN'T THIS
AFFECT HIS RELATIONSHIP WITH CAL MR PADUCH'S FACE DARKENS THEY DON'T
WORK FOR US NOW HE SAYS THEY GAVE US A REPORT THESE MATERIALS DON'T FIT
POLISH REALITY MR PADUCH WON'T BE TAKING HYDOMAT PRIVATE FOR NOW
THERE'S NO NEED HE SAYS FOR DRASTIC STEPS LIKE SELLING STATE WEALTH

JUST AS AID FOR WESTERN ADVICE HAS MOSTLY AIDED WESTERN ADVISERS WESTERN
BUSINESS HAS BEEN THE BIGGEST GAINER FROM THE WEST'S BUSINESS LOANS AID
AGENCIES HAVE A PRONOUNCED PREFERENCE FOR SAFE BETS THE MONEY THEY ARE
SUPPOSED TO LEND TO INSPIRE ENTERPRISE IN THE EAST OFTEN GOES TO WESTERNERS
OR IT GOES NOWHERE AT ALL

AT HIS OFFICE WINDOW ADAM DE SOLA POOL TAKES IN A VISTA OF STEEPLES AND
WAREHOUSES HE SAYS THIS MAKES ME THINK OF POLAND BUT HIS VIEW IS OF
LONDON'S EAST END SEEN FROM THE HEADQUARTERS OF THE EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT

MR POOL IS 36 AND GOT HIS MBA AT MIT TWO YEARS AGO HE WAS AT SALOMON
BROTHERS IN NEW YORK A PRIVATE BANKER WITH PROFITS IN MIND IN LONDON HE
IS A PUBLIC BANKER WITH POLISH PROFITS IN MIND MOST OF MY CLIENTS ARE
FOREIGN COMPANIES INTERESTED IN INVESTING IN POLAND HE SAYS POURING A
GLASS OF SPRING WATER YOU'D BE SURPRISED HOW MANY PASS THROUGH HEATHROW

A TASTE FOR CARRARA MARBLE THAT ADORNS THE BANK'S HALLS DROVE HIS BANK'S
PRESIDENT JACQUES ATTALI TO QUIT LAST JUNE IN ITS THREE YEARS OF
EXISTENCE THE EBRD HAD SPENT MORE ON CONSTRUCTING LAVISH HEADQUARTERS THAN
IT HAD DISPENSED IN LOANS A NEW PRESIDENT AND A NEW ORGANIZATION CHART ARE
SORTING THINGS OUT BUT THE CRITICS WON'T STAY MUTE THEY SAY THE PREMIER
INSTITUTION CREATED TO SPEED THE ADVENT OF CAPITALISM STILL DOES MORE FOR
THE WEST THAN THE EAST

THE EBRD'S RECORD IN POLAND MAKES IT LOOK THAT WAY THE BANK HAS WRAPPED UP
26 DEALS GOVERNMENT BORROWERS AND ONE CHICKEN PROCESSOR ASIDE THE REST
HAVE WESTERN PARTNERS AND BORROW ON HARD TERMS AS THEY WOULD FROM ANY
COMMERCIAL BANK SOME WESTERNERS IN POLAND WONDER HOW THIS PATTERN FITS THE
DEFINITION OF AID THE EBRD THEY SAY SHOULD BE LENDING TO POLES NOT TO
FOREIGNERS WHO CAN GET THEIR MONEY ELSEWHERE

HOW CAN ANYBODY THERE SAY THEY WON'T BANK ON POLISH COMPANIES SAYS ONE
WESTERN CONSULTANT ADDS ANOTHER THEY WERE SUPPOSED TO BLAZE TRAILS BUT
THEY DO JOINT VENTURES WITH WESTERNERS WHY BECAUSE IT'S SAFE

MR POOL SIPS HIS SPRING WATER

I DON'T THINK WE DO VERY SAFE PROJECTS HE SAYS ANY PROJECT IN EASTERN
EUROPE HAS RISK I WILL DO A DEAL FOR ANY COMPANY THAT DEMONSTRATES
COMPETENCE TO RUN A BUSINESS AND REPAY A LOAN IT HAPPENS THAT TO DATE MOST
OF THOSE COMPANIES HAVE BEEN WESTERN

THE EBRD SEES ITSELF AS A BEACON IN THE VOID WESTERN BANKS ARE STILL LEERY
OF THE EAST NOTES MR POOL ONLY THE EBRD SAY ITS BANKERS LENDS TO VITAL
WESTERN INVESTORS OTHERWISE SOME WOULDN'T COME AT ALL

YET MANY DO AT LEAST 90 BIG FOREIGN COMPANIES HAVE INVESTED 2 BILLION IN
POLAND WITHOUT THE EBRD ITS BANKERS ASSUME FOR INSTANCE THAT BRITAIN'S
PILKINGTON WOULD NEVER HAVE FLOATED ITS FLOATGLASS PLANT WITHOUT THEIR 50
MILLION PILKINGTON ASSUMES IT WOULD PROBABLY YES SAYS ITS SPOKESMAN
TONY COVE WE WANTED TO GET INTO POLAND ANYWAY POOR OLD EBRD IT'S HAD A
BIT OF A KNOCKING  THEY WERE GOOD TO US

BUT WHO IS GOOD TO THE ORDINARY POLES NOT THE EBRD OR ANY OF THE WEST'S
OTHER BIG PUBLIC BENEFACTORS TWO MILLION BUSINESSES HAVE STARTED HERE SINCE
1989 THEY EMPLOY HALF THE WORK FORCE AND TURN OUT HALF THE NATIONAL
PRODUCT SMALL ENTREPRENEURS ARE LAYING THE CONCRETE OF THE MODERATE STABLE
DEMOCRACY THE WEST WANTS HERE YET BECAUSE THEY ARE CONSIDERED HIGH RISK
MOST OF THEM CAN'T GET A DIME OF WESTERN CREDIT

DIRECT LOANS FROM THE EBRD ARE OUT OF THE QUESTION IT'S VERY DIFFICULT FOR
US TO MAKE INDIVIDUAL LOANS SAYS YVES FORTIN THE BANK'S ADMINISTRATOR IN
WARSAW WE'D LOSE OUR SHIRT

BUT THE EBRD'S ATTEMPTS TO DEAL THROUGH MIDDLEMEN DON'T WORK THEY WON'T
STICK THEIR NECKS OUT EITHER THE 100 MILLION IT HANDED COMMERCIAL BANKS
HAS NEVER BEEN PASSED ON TO PRIVATE BUSINESS THE EU TRIED TOO IT ASKED
POLISH BANKS TO DISTRIBUTE 60 MILLION THEY DIDN'T THE WORLD BANK ALSO
GAVE THOSE BANKS 700 MILLION AND ALSO FLOPPED

WHO IS TO BLAME WESTERNERS SAY THE POLES WON'T TAKE CHANCES THE POLES SAY
WESTERNERS WON'T SHARE THE RISK BOTH MAY BE RIGHT

THEY SHIFTED RESPONSIBILITY FOR THE POOR USE OF THEIR MONEY ONTO US SAYS
THE CREDIT CHIEF OF POLAND'S DEVELOPMENT BANK MACIEJ STANCZUK HIS BANK
WOULD HAVE TO PAY BACK THE AIDGIVERS IF SMALL BORROWERS DEFAULTED THAT'S
WHY IT HAS LENT JUST 5 OF A 55 MILLION WORLD BANK CREDIT THAT BANK MR
STANCZUK SAYS CREATES ILLUSIONS THAT WESTERN MONEY IS AVAILABLE FOR THE
MASS OF POLES

OUR PROCEDURES AREN'T THE ISSUE REPLIES IAN HUME WHO HEADS THE WORLD
BANK IN WARSAW IF WE DISBURSE FUNDS IN AFRICA WE CAN DAMN SURE DO IT IN
POLAND POLISH BANKS HE CONTENDS SCARE OFF BORROWERS BY DEMANDING
COLLATERAL WORTH TWICE THE AMOUNT OF A SMALLBUSINESS LOAN THE POLES SAYS
MR HUME NEED GREATER COURAGE TO TAKE ON NEW CUSTOMERS DENIED A TRACK
RECORD BY 45 YEARS OF HISTORY

SO THE AIDGIVERS AND POLISH BANKERS BICKER ON MEANTIME ONE TINY MINORITY
OF NEW ENTREPRENEURS HAS AT LAST FOUND SOME CASH ON THE WAY TO THE FREE
MARKET THE NEWLY DESIGNED POCKET IT COMES OUT OF BELONGS TO UNCLE SAM

WHEN THE BUSH WHITE HOUSE SET OUT TO DELIVER AID TO THE EAST IT WANTED TO
PROMOTE ENTERPRISE IN AN ENTERPRISING WAY ITS NEW IDEA WAS THE
POLISHAMERICAN ENTERPRISE FUND INVENTED TO FINANCE SMALL BUSINESS WHILE
MAXIMIZING PROFIT FOR ITSELF AND ITS OWN MANAGERS BUT IS MAXIMIZING AN
AIDVEHICLE'S PROFIT THE WAY TO HELP THE MAXIMUM NUMBER OF POLISH
ENTREPRENEURS THE ANSWER IT SEEMS IS NO

IN THE EYES OF THE WEST'S OTHER AID GIVERS AT LEAST THE FUND HAS WORKED
WONDERS IT'S THE MOST SUCCESSFUL EFFORT IN POLAND SAYS MR HUME OF THE
WORLD BANK AGAINST HIS OWN SMALLLOAN RECORD THE ENTERPRISE FUND'S NUMBERS
SHINE OF THE 240 MILLION BESTOWED BY CONGRESS IT HAS SPRINKLED 164
MILLION AMONG 2510 COMPANIES BUT THOSE NUMBERS DON'T TELL THE FULL STORY

THREE YEARS AGO ENTERPRISE FUNDS WERE A SILLY AMERICAN IDEA SAYS MS
LUNDBERG THE FUND'S GENERAL DIRECTOR NOBODY IMAGINED WE'D MAKE MONEY

MAKING MONEY HOWEVER IS WHAT THE ENTERPRISE FUND IS ABOUT AND NOT JUST
FOR POLES THE SILLY IDEA WAS TO HIRE REAL CAPITALISTS TO MAKE SMART
INVESTMENTS ONCE THEY PAID OFF THE US TAXPAYER COULD DISENGAGE AND THE
REAL CAPITALISTS WOULD GET REAL MONEY

CONGRESS HAD THE IMPRESSION THAT A SALARY CEILING OF 150000 A YEAR WOULD
DULY INCENTIVIZE ITS MBA AID WORKERS

NOT QUITE

THE MANAGERS IN POLAND HAVE FOUND A WAY TO ENHANCE THEIR REWARDS STILL
FURTHER WITHOUT OFFENDING ANYONE IN WASHINGTON AFTER CONSULTING WITH
CONGRESS THEY CREATED AN ENTERPRISE FUND CLONE THE POLISH PRIVATE EQUITY
FUND THIS FUND RAISED 51 MILLION FROM PRIVATE INVESTORS TOOK 50 MILLION
OF US MONEY FROM THE ORIGINAL ENTERPRISE FUND AND GOT 50 MILLION MORE
FROM AN ADMIRING EBRD

TO RUN THE NEW PRIVATE FUND A MANAGEMENT FIRM WAS FORMED ITS OFFICERS ARE
THE SAME PEOPLE WHO MANAGE THE ENTERPRISE FUND THEY MAKE THE SAME
INVESTMENTS FOR BOTH FUNDS IF THE PRIVATE FUND MAKES GOOD MONEY THOUGH
THE OFFICERS GET A PIECE OF THE PROFITS

THE WASHINGTON AID ESTABLISHMENT WASN'T CONVINCED THIS WAS ENTIRELY ETHICAL
IF YOU TRY TO EXPLAIN IT A LOT OF THE TIME THEY DON'T UNDERSTAND MS
LUNDBERG SAYS WE HAD DISCUSSIONS WITH ENORMOUS SENSITIVITY TO THE
CONFLICTOFINTEREST POSSIBILITIES

WASHINGTON DID UNDERSTAND THOUGH THAT THE SETUP WOULD HELP EASE THE US
OUT OF SPENDING MUCH MORE ON POLISH FREE ENTERPRISE IF THE FUNDS PROSPER
THEY SUSTAIN THEMSELVES IF THE MANAGERS PROSPER THEY WON'T RUSH BACK TO
WALL STREET ONCE IT WAS CONVINCED THAT NO ONE WAS SIPHONING OFF MONEY
CONGRESS WAS HAPPY BUT HOW MANY POLES WOULD BE HAPPY TOO NOT MANY

THE ENTERPRISE FUND'S BOAST OF STAKING 2510 COMPANIES WITH 164 MILLION
TURNS OUT TO BE A TAD MISLEADING IN FACT JUST 43 COMPANIES GOT 120
MILLION THESE TENDERLY NURTURED INVESTMENTS RANGE FROM 15 MILLION FOR A
POLISHAMERICAN PRINTER DOWN TO 199000 FOR A BOAT BUILDER THE OTHER 2467
COMPANIES GOT THEIR LOANS AVERAGING 24000 FROM A MUCH SMALLER ENTERPRISE
FUND SPINOFF THE ENTERPRISE CREDIT CORP

WHAT MAY BE THE PRICKLIEST JOB AND THE GREATEST SUCCESS OF THE WHOLE
25 BILLION AID EFFORT FALLS TO THE YOUNG POLISH BANKERS WHO DO THE CREDIT
CORPORATION'S SCUT WORK JERZY GLINIECKY AND SLAWOMIR WASOWSKI PASS THEIR
DAYS DRIVING FROM COPY SHOP TO DENTIST TO BAKERY NOW THEY ARE SHOWING OFF A
PLACE ON CHLODNA STREET THAT FIXES FLATS THE OWNER BORROWED 50000 FROM
THE CREDIT CORP FOR A COMPUTERIZED GERMAN LEAK DETECTOR

FROM A SOPHISTICATED FLAT FIXER WE'RE TURNING INTO A MORE SOPHISTICATED
FLAT FIXER THE OWNER SAYS CAPPUCCINO

ACROSS THE STREET IN A RIVAL REPAIR SHOP HALINA WISNIEWSKA WATCHES
SKEPTICALLY AMERICANS LENDING MONEY SHE SAYS THAT'S GOOD BUT I'D BE
AFRAID YOU TAKE IT AND YOU DON'T SLEEP AT NIGHT

POLES ARE AS SUSPICIOUS OF BANKS AS POLISH BANKS ARE OF THEM THE CREDIT
CORP SENT ITS FLIER TO EVERY LAUNDRY IN WARSAW ALL BUT THREE IGNORED IT
THEY DIDN'T KNOW ITS BANKERS MAKE HOUSE CALLS

LAUNDRIES ALWAYS PAY WELL SAYS MR WASOWSKI PUSHING OPEN THE DOOR OF
STEFANIA NOCUN'S SUNNY SHOP SHE WASHES SHEETS NOW AND WANTS 10000 FOR A
DRYCLEANING MACHINE THE BANKERS SIT HER DOWN AND GRILL HER FOR 45 MINUTES
ALL SHE CAN SHOW IS A SCRIBBLED CASH BOOK SHE HAS NO COLLATERAL SHE
FINAGLES HER TAXES

AND SHE GETS HER LOAN STRONG CASH FLOW EXPERIENCED OWNER MR WASOWSKI
SAYS ON HIS WAY OUT SHE HAS GOOD CONTACTS PROBABLY SHE BRIBES WE HAVE
NO PROBLEMS WITH SUCH A BUSINESS

THE CREDIT CORP APPROVES 100 LOANS A MONTH THIS WAY STEERING MORE MONEY TO
ORDINARY POLES THAN ANY OTHER AID GIVER IT WOULD LEND MORE IF IT HAD MORE
TO LEND BUT ITS PARENT THE ENTERPRISE FUND GAVE IT JUST 28 MILLION PLUS
20 MILLION IN LOANS THAT CAN BE RELENT TO POLES AND THE FUND'S NEW
PARTNER THE PRIVATE EQUITY FUND WON'T GIVE IT ANYTHING

THE REASON IS THAT LABORINTENSIVE LENDING AT THE GRASS ROOTS OF POLAND'S
RESTORATIONA SERVICE NO POLISH BANK CAN AFFORDWON'T MAKE THE KIND OF MONEY
THAT THE ENTERPRISE FUND'S VENTURE CAPITALISTS BELIEVE THEY NEED TO MAKE
THEIR OPERATION SELFSUSTAINING IN THIS EXTREMELY RISKY FRONTIER OF
CAPITALISM

THEY'RE LOOKING FOR A 20 RETURN SAYS MAREK KULCZYNSKI THE CREDIT CORP'S
POLISH PRESIDENT AND FROM US THEY CAN'T EXPECT MORE THAN 4 DON'T FORGET
MICROLENDING ISN'T VERY PROFITABLE WE CONSIDER OURSELVES A DEVELOPMENT
INSTITUTION OUR OBJECTIVE ISN'T TO EARN MONEY

AS THE WEST ENTERS ITS FIFTH YEAR OF TUTORING EASTERN EUROPE IN THE WAYS OF
CAPITALISM IT MAY FINALLY BE LEARNING ONE LESSON RECOGNIZING THAT A GOOD
CHUNK OF AID IS GOING TO BE DISSIPATED ON WESTERN CONSULTANTS WITH NO
MEASURABLE RESULTS PERHAPS IT'S BETTER TO LET THE POLES SPEND IT FOR
BETTER OR WORSE ON THEMSELVES

IN JANUARY 1990 HUBERT SZLASZEWSKI SAT AT AN EMPTY DESK IN A BARE STATE
OFFICE A 32YEAROLD LAWYER RAISED IN THE WEST HE HAD RETURNED TO PITCH IN
AS POLAND TRIED TO COPE WITH THE WEST'S SUDDEN BENEVOLENCE WE NEED ALL
KINDS OF ASSISTANCE HE SAID THEN ALL OF IT IS WELCOME THE DELICATE PART
IS MAKING SURE IT IS WELL SPENT

MR SZLASZEWSKI HAS A DESK PILED WITH PAPER TODAY GUIDING A BATCH OF AID
ACTIVITIES HE STILL TRIES TO SEE THAT THE MONEY IS WELL SPENT AND THAT
STILL IS THE DELICATE PART YOU HAVE TO BE REASONABLE HE SAYS BUT DONORS
OFTEN AREN'T POLES SHOULD BE IN CHARGE HE SAYS BUT DONORS USUALLY ARE

POLAND'S BUREAUCRATS ARE NO LONGER UNSCHOOLED IN THE WAYS OF FOREIGN AID
YET THE WEST WON'T ALLOW THEM A MAJOR SAY IN THE WAY AID IS USED POLES WAIT
MONTHS FOR THE EU TO CLEAR IDEAS THEY APPROVE THEIR SOLE BRUSH WITH THE
US AID PROGRAM CONSISTS OF DROPPING BY THE EMBASSY TO PICK UP ANNUAL
REPORTS

THE POLES HAVE BORROWED A WAD OF MONEY AND LISTENED TO A LOAD OF LECTURES AS
THE WEST HAS DIRECTED THEM TOWARD CAPITALISM IN HINDSIGHT THEY AND MANY
WESTERNERS ALSO NOW ACCEPT THAT DESPITE THE SUCCESS OF SOME INDIVIDUAL AID
EFFORTS SOMETHING MEATIER MORE DIRECT GRANTS IN PARTICULAR MIGHT
HAVE SAVED POLAND'S POOR AND JOBLESS MUCH GRIEF GIVEN GROWING ROOM TO THEIR
FISH FARMERS AND SOFTWARE WRITERS AND HELPED AVOID THE FOUR YEARS OF
POLITICAL SLAPSTICK THAT FINALLY BROUGHT THE COMMUNISTS BACK

TODAY POLES HAVE STOPPED WAITING FOR WESTERN AID TO MATCH THE RHETORIC OF
GENEROSITY THAT GREETED THEIR REVOLUTION THEY WOULD SIMPLY PREFER MORE
TRADE AND FEWER LOANS MORE INVESTMENT AND LESS ADVICE EXPERTS STILL FLY IN
TO IMPROVE POLISH CHERRIES WHILE WESTERN DUTIES KILL POLISH CHERRY EXPORTS
THE POLES POLITELY WONDER IF A TARIFF CUT WOULDN'T LESSEN THE ABSURDITY IF
A SMALL LOAN FINDS NO TAKERS THEY ASK WHY NOT SUGAR IT WITH A GRANT TO THE
JOBLESS COAL MINER WHO WANTS TO OPEN A CAR WASH

TWO YEARS AGO POLAND ASKED THE EU TO THINK OVER SUCH THINGS CHERRIES SEEM
TO HAVE NO HOPE BUT THE CAR WASH FINALLY DOES 90 MILLION IN GRANTS ARE
SLOWLY RISING FROM THE BRUSSELS BUREAUCRACY IT MAKES MR SZLASZEWSKI FEEL
AS CORDIALLY GRATEFUL TODAY AS HE DID IN 1990 FOR WHATEVER GOODWILL THE WEST
HAS TO OFFER BUT HE IS 36 NOW AND FOUR YEARS THE WISER 9402230075
940223 MARKETING BRIEF NOTED

KERRIGAN DEAL WALT DISNEY CO SIGNED A BROAD AGREEMENT WITH OLYMPIC FIGURE
SKATER NANCY KERRIGAN THAT INCLUDES A BIOGRAPHICAL TV MOVIE FOR ABC AN
ICESKATING TV SPECIAL AND APPEARANCES AT DISNEY PARKS AS WELL AS A
CHILDREN'S BOOK TERMS WEREN'T DISCLOSED

WHO'S NEWS ADVANCE PUBLICATIONS INC NAMED THOMAS A FLORIO 38 PRESIDENT
OF THE NEW YORKER MAGAZINE HE RETAINS THE TITLE OF PUBLISHER OF THE NEW
YORKER 9402230074 940223 INSIDER TRADING SPOTLIGHT

NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST
BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH
FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE
TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED
AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING
ACQUIRED W1000 OR MORE

CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER
9402230073 940223 BUSINESS BRIEF ADOLPH COORS CO BREWER'S NET LOSS
WIDENED TO 751 MILLION IN QUARTER

ADOLPH COORS CO REPORTED A NET LOSS OF 751 MILLION OR 197 A SHARE FOR
THE 12WEEK FOURTH QUARTER INCLUDING A ONETIME PRETAX CHARGE OF ABOUT
1095 MILLION FOR VOLUNTARY SEVERANCE PACKAGES FOR 679 WHITECOLLAR
EMPLOYEES AND FOR WORKPLACE RESTRUCTURING

ADDITIONAL ONETIME CHARGES RAISED THE TOTAL CHARGES FOR THE QUARTER TO
1225 MILLION BEFORE TAXES OR 198 A SHARE A NET LOSS FOR THE
YEAREARLIER QUARTER TOTALED 227 MILLION OR 60 CENTS A SHARE NET SALES
DECLINED TO 3373 MILLION FROM 3392 MILLION

THE GOLDEN COLO COMPANY SAID OPERATING PROFIT FROM CONTINUING OPERATIONS
WAS 300000 COMPARED WITH A LOSS OF 35 MILLION FROM CONTINUING OPERATIONS
THE YEAREARLIER QUARTER IN SPITE OF PARTICULARLY COMPETITIVE MARKET
CONDITIONS IN 1993

FOR THE YEAR THE COMPANY REPORTED PRETAX OPERATING PROFIT OF 778 MILLION
UP FROM 733 MILLION IN 1992 9402230072 940223 CLINTON TO NAME GORELICK
 TO NO 2 POST AT JUSTICE

WASHINGTON PRESIDENT CLINTON HAS DECIDED TO NAME THE PENTAGON'S TOP
LAWYER JAMIE GORELICK TO THE NO 2 POSITION IN THE JUSTICE DEPARTMENT

THE ANNOUNCEMENT IS EXPECTED TO COME TODAY

IF THE SENATE CONFIRMS HER NOMINATION AS DEPUTY ATTORNEY GENERAL MS
GORELICK WILL SUCCEED PHILIP HEYMANN WHO RESIGNED LAST MONTH CITING A
CLASH OF ADMINISTRATIVE STYLES WITH ATTORNEY GENERAL JANET RENO

AS THE DEFENSE DEPARTMENT'S GENERAL COUNSEL MS GORELICK HELPED DRAFT
POLICIES SUCH AS THE PENTAGON'S DIRECTIVE ON GAYS IN THE MILITARY SHE IS
EXPECTED TO BRING STRONG MANAGERIAL SKILLS TO A DEPARTMENT THAT CRITICS SAY
HAS BEEN UNORGANIZED AS DEPUTY ATTORNEY GENERAL THE 43YEAROLD HARVARD
LAW SCHOOL GRADUATE WOULD OVERSEE THE CRIMINAL ACTIVITIES DIVISION
INCLUDING THE FEDERAL BUREAU OF INVESTIGATION AND THE DRUG ENFORCEMENT
ADMINISTRATION

YESTERDAY THE SENATE CONFIRMED PRESIDENT CLINTON'S NOMINATION OF STROBE
TALBOTT TO BE DEPUTY SECRETARY OF STATE THE VOTE WAS 6631 CONSERVATIVES
AND OTHERS OPPOSED MR TALBOTT LARGELY OVER HIS VIEWS ON ISRAEL AND RUSSIA
9402230071 940223 MEDIA & MARKETING ADVERTISING LANDS' END HOPES
MAMET STORY WILL HELP DRAW MORE SHOPPERS  BY KEVIN GOLDMAN

IN THE DINER A NEW SHORT STORY BY PULITZER PRIZEWINNING PLAYWRIGHT DAVID
MAMET READERS ARE INVITED INTO A WORLD OF RELAXATION WHERE BREAKFAST IS
SERVED ALL DAY AND A WRITER CAN SIMPLY HANG OUT

THERE AREN'T THE USUAL MAMET CHARACTERS SLEAZY SALESMEN DISTURBED
THERAPISTS OR DESPERATE INDIVIDUALS SELLING THEIR MORAL SOUL TO GET AHEAD IN
HOLLYWOOD

THAT'S UNDERSTANDABLE SINCE MR MAMET'S LATEST WORK OF FICTION ISN'T IN A
LITERARY MAGAZINE RATHER IT CAN BE FOUND IN THE CURRENT FAMILYORIENTED
LANDS' END CATALOG SANDWICHED BETWEEN FASHION SPREADS PROMOTING CASUAL MEN'S
AND WOMEN'S APPAREL

MR MAMET WHO WON THE 1984 PULITZER PRIZE FOR HIS PLAY GLENGARRY GLEN
ROSS IS THE LATEST AND PERHAPS THE MOST RENOWNED LITERARY FIGURE TO
CONTRIBUTE TO THE LANDS' END CATALOG OTHERS INCLUDE GEORGE PLIMPTON
WILLIAM LEAST HEATMOON AUTHOR OF BLUE HIGHWAYS AND EDWARD HOAGLAND WHO
HAS WRITTEN 15 BOOKS

BY HAVING MR MAMET WRITE AN ORIGINAL STORY LANDS' END BASED IN
DODGEVILLE WIS IS USING A STRATEGY FAMILIAR TO SCORES OF OTHER MARKETERS
CUT THROUGH THE COMMERCIAL CLUTTER AND CREATE A DISTINCTIVE VOICE MAMET
SEPARATES THEM FROM THE REST OF THE PACK SAYS JOAN BURDEN LITLE PRESIDENT
OF THE CATALOG CONNECTION A MERCHANDISE AND CREATIVE CONSULTING COMPANY IN
SALEM NH IT'S A SMART MARKETING TOOL THAT GIVES LANDS' END A HEART THAT
BEATS IT PRESENTS THEM AS REAL PEOPLE AND NOT JUST A COMPANY THAT'S ON
PAPER

LANDS' END FOUNDED IN 1963 AS A BOATINGEQUIPMENT CATALOG IS COMPETING IN
AN INCREASINGLY CROWDED FIELD THE AVERAGE US HOUSEHOLD RECEIVES 78
CATALOGS EACH YEAR FROM AMONG THE 8000 TO 10000 DIRECTMAIL COMPANIES
SAYS A SPOKESWOMAN FROM THE DIRECT MARKETING ASSOCIATION THE INDUSTRY HAD
PROJECTED SALES LAST YEAR OF 55 BILLION SHE SAYS UP 7 FROM 515 BILLION
IN 1992

AND LANDS' END WANTS TO MAINTAIN ITS SHARE OF THE GROWTH IT REGISTERED
SALES OF 734 MILLION IN THE FISCAL YEAR ENDED JAN 31 1994 THAT'S UP 7
FROM YEAREARLIER SALES OF 683 MILLION

THE CHOICE OF MAMET IS INSPIRED SAYS ARNOLD FISHMAN PRESIDENT OF
MARKETING LOGISTICS A BUSINESS CONSULTANT IN HIGHLAND PARK ILL LANDS'
END IS LIKE THE ESQUIRE OF MAILORDER CATALOGS IN THAT IT IS TRYING TO BE A
LITERARY MAGAZINE BUT MR FISHMAN SAYS THE STRATEGY ISN'T RISKFREE
TRADING MERCHANDISE SPACE FOR NONMERCHANDISE SPACE SOMETIMES IS
INEFFECTIVE HE SAYS YOU'RE GIVING AWAY VALUED REAL ESTATE BY GIVING AWAY
PAGES OF YOUR CATALOG

THE SELECTION OF MR MAMET IS INDEED A CURIOUS ONE AFTER ALL HIS NAME
DOESN'T CONJURE UP CHARACTERS WITH WHOLESOME IMAGES AND HIS PLAYS ARE
REPLETE WITH CURSE WORDS MR MAMET DIDN'T COMMENT AND HIS AGENT ANDREW
WYLIE DIDN'T RETURN PHONE CALLS SEEKING COMMENT YESTERDAY

BUT STAN TYMOREK THE EDITORIAL DIRECTOR OF THE LANDS' END CATALOGS SAYS
MR MAMET WAS SUGGESTED BY STAFF MEMBERS WHO ARE FANS OF THE PLAYWRIGHT MR
TYMOREK WANTED THE CURRENT ISSUE TO SPOTLIGHT MEN'S CHINOS AND WE THOUGHT
MAMET COULD DO A LIGHTHEARTED ESSAY ON RELAXATION HE SAYS WE LEFT IT UP
TO HIM TO DO PRETTY MUCH WHATEVER HE WANTED

LANDS' END DECLINES TO COMMENT ON MR MAMET'S FEE ALTHOUGH MR TYMOREK SAYS
MR MAMET GOT PAID MORE THAN WE USUALLY PAY THE COMPANY NORMALLY PAYS
THE USUAL MAGAZINE RATE HE SAYS WHICH COULD BE ABOUT 1 PER WORD

LANDS' END ISN'T THE FIRST COMPANY TO USE FAMOUS AUTHORS FOR ITS CATALOG A
DECADE AGO BANANA REPUBLIC PUBLISHED INSTORE CATALOGS WITH ESSAYS USUALLY
ON TRAVEL BY WELLKNOWN WRITERS INCLUDING HUMORIST AND NOW FILM DIRECTOR
AND SCREENWRITER NORA EPHRON SLEEPLESS IN SEATTLE THESE ARE HIGHLY
EFFECTIVE SAYS KATIE MULDOON PRESIDENT OF MULDOON & BAER A NEW YORK
CATALOGCONSULTING FIRM THEY BRING CREDIBILITY TO THE TABLE IF SOMEONE IS
A FAN OF THE PERSON WRITING THEN THEY MAY MAKE A PURCHASE

TO DATE ONLY ONE AUTHOR HAS REFUSED OVERTURES FROM LANDS' END CALVIN
TRILLIN THE WITTY LAIDBACK OBSERVER OF AMERICA AND SAYS MR TYMOREK
THE REASON WASN'T ETHICS RATHER THE REFUSAL MADE TWICE WAS BECAUSE OF
SCHEDULING LAND'S END WILL PROBABLY TRY HIM AGAIN MR TRILLIN COULDN'T BE
REACHED FOR COMMENT

LAND'S END PUBLISHES ITS 12 CATALOGS ANNUALLY WITH THE HOPE CONSUMERS DON'T
INITIALLY THUMB THOUGH THEM AND TOSS THEM IF THEY DON'T INITIALLY FIND
SOMETHING TO ORDER THE CATALOG PERIODICALLY EVEN FEATURES LETTERS TO THE
EDITOR STILL TO COME FOR LAND'S END CONSUMERS AN ESSAY BY NATIONAL PUBLIC
RADIO COMMENTATOR BAILEY WHITE AS WELL AS STORIES BY OTHER AUTHORS ABOUT
MOTHER'S DAY AND FATHER'S DAY AND TO PUSH ITS SHORTS LAND'S END ASKED
EIGHT SHORTSTORY WRITERS TO COMPOSE TALES OF 300 WORDS MAXIMUM FOR ITS
JULY ISSUE

THIS IS THE MARRIAGE BETWEEN MAGAZINES AND A CATALOG OR A MAGALOG IF YOU
WILL SAYS MR FISHMAN LANDS' END IS APPEALING TO THE UPPER END OF THE
SEGMENT OF THE POPULATION WHO BUYS THROUGH CATALOGS

IT IS PERHAPS FITTING THAT MR MAMET'S PROSE WINDS UP IN A VENUE THAT HAS
ONLY ONE PURPOSE SELLING AFTER ALL MR MAMET'S PULITZER PRIZEWINNING
PLAY DEALT WITH SMALLTIME CUTTHROAT SALESMEN AND SPEEDTHEPLOW WAS
ABOUT SELLING OUT IN TINSELTOWN

EXACTLY WHY MR MAMET WOULD WRITE FOR A CATALOG REMAINS UNCLEAR SINCE HE
ISN'T TALKING ASKED FOR HIS OPINION MR TYMOREK SAYS I ASSUME HE FOUND
IT FAIR RATE AND WORTH HIS WHILE AND MAYBE HE NEEDED THE WORK

THE CBS NETWORK IS CLEANING UP DURING THE FEBRUARY SWEEPS PERIOD WITH ITS
WINTER OLYMPICS COVERAGE THE OTHER TWO NETWORKS ARE RESORTING TO RACY FARE
AND IT'S MAKING SOME ADVERTISERS QUEASY

KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS HAS PUT TWO EPISODES OF
THE ABC SERIES ROSEANNE ON ITS LIST OF SHOWS TO AVOID AT ISSUE ARE SHOWS
DEALING WITH MASTURBATION A REPEAT THAT WAS SET TO AIR LAST NIGHT AND A
NEW EPISODE SCHEDULED FOR NEXT WEEK IN WHICH ROSEANNE AND A LESBIAN PLAYED
BY GUEST STAR MARIEL HEMINGWAY KISS ALSO MAKING THE BIG ADVERTISER'S LIST
OF TABOO SHOWS IS A REPEAT EPISODE OF LAW AND ORDER DEALING WITH RACISM
THAT'S SET TO AIR ON NBC TONIGHT

KRAFT'S AGENCY GREY ADVERTISING NEW YORK PUT OUT AN ALLPOINTS BULLETIN
TO LOCAL ABC STATIONS NOTING THAT KGF SPOTS SHOULDN'T RUN IN THOSE EPISODES
 BE THEY REGULARLY SCHEDULED MAKE GOODS OR BONUS SPOTS THE COMPANY
HADN'T BOUGHT ANY NATIONAL NETWORK TIME DURING THE SHOWS

IN ADDITION SEVERAL ADVERTISERS PULLED OUT AT THE LAST MINUTE FROM NBC'S
BROADCAST OF SATURDAY NIGHT LIVE LAST WEEK IN WHICH COMEDIAN MARTIN
LAWRENCE DELIVERED A GRAPHIC MONOLOGUE ABOUT SEX A NETWORK EXECUTIVE SAID
AN NBC SPOKESWOMAN DECLINED TO COMMENT ON ADVERTISERS' REACTION TO MR
LAWRENCE'S MONOLOGUE WHICH DREW TABLOID HEADLINES AND DOZENS OF CALLS TO
THE NETWORK

DURING SWEEPS PERIODS TELEVISION AUDIENCES ARE MEASURED TO DETERMINE HOW
MUCH LOCAL STATIONS CAN CHARGE FOR ADS PAUL SCHULMAN WHOSE COMPANY BUYS
MEDIA TIME FOR ADVERTISERS PREDICTS CBS WILL END THE FIRST 10 DAYS OF
OLYMPICS COVERAGE WITH AN AVERAGE PRIMETIME RATING OF 26 OF THE NATION'S
942 MILLION TELEVISION HOMES BEATING THE HIGHEST SINGLE NIGHT OF
VIEWERSHIP DURING THE 1992 GAMES IN ALBERTVILLE FRANCE

IT'S ALMOST LIKE ABC AND NBC SAVED THESE EPISODES TO BE CONTROVERSIAL AND
PUSH THE ENVELOPE DURING THE SWEEPS SAYS PAUL SCHULMAN A NEW YORK MEDIA
BUYER RIGHT NOW IT DOESN'T SEEM LIKE IT MATTERS WHAT THEY THROW AGAINST
THE OLYMPICS NO ONE IS WATCHING

CRYSTAL LIGHT KRAFT GENERAL FOODS RETURNED THE ESTIMATED 15 MILLION
CRYSTAL LIGHT POWDEREDDRINK ACCOUNT TO D'ARCY MASIUS BENTON & BOWLES LESS
THAN A YEAR AFTER FIRING THE NEW YORK AGENCY FROM THE BUSINESS AND AWARDING
IT TO WPP GROUP'S OGILVY & MATHER THIS TIME DMB&B BESTED OGILVY AND TWO
OTHER KGF AGENCIES GREY ADVERTISING AND YOUNG & RUBICAM

GAP WIEDEN & KENNEDY WON'T BE CREATING ADS FOR GAP INC AFTER ALL THE
PORTLAND ORE SHOP HAD BEEN INVITED TO SHOW CREATIVE WORK TO THE SAN
FRANCISCO RETAILER LAST YEAR AND MADE TWO FRUITLESS PRESENTATIONS SINCE
LAST WEEK WAS THE LAST ONE SAID DAVID LUHR THE AGENCY'S DIRECTOR OF
ACCOUNT SERVICES CONFIRMING A REPORT IN ADWEEK THEY DIDN'T BUY THE
CREATIVE WORK WE PRESENTED HE SAID THAT WAS THEIR PREROGATIVE NOW
WE'RE GOING OUR SEPARATE WAYS

DIET COKE CANS COCACOLA CO SAID IT IS GIVING DIET COKE CANS A NEW
NOSTALGIC DESIGN THE CANS WILL FEATURE DIET WRITTEN IN THE STYLE OF
SCRIPT USED IN THE ORIGINAL COKE TRADEMARK DIET COKE HAS LOST MARKET SHARE
IN THE LAST TWO YEARS ACCORDING TO THE MAXWELL CONSUMER REPORT AS
DIETSODA SALES HAVE SLOWED COKE HAS BEEN TRYING TO SPARK INTEREST IN ITS
BRANDS WITH PACKAGING CHANGES THE COMPANY RECENTLY ADDED THE IMAGE OF THE
OLDFASHIONED CONTOURED COKE BOTTLE TO CANS OF COCACOLA CLASSIC
9402230070 940223 TECHNOLOGY BRIEF RADIOMAIL CORP FIRM'S MESSAGING
SOFTWARE INCLUDED IN DELL'S NEW PCS

RADIOMAIL CORP A CLOSELY HELD WIRELESS COMMUNICATIONS CONCERN SAID DELL
COMPUTER CORP WILL INCLUDE RADIOMAIL ELECTRONIC MESSAGING SOFTWARE IN
DELL'S NEW LINE OF PORTABLE COMPUTERS

THE MOVE IS A BOOST FOR RADIOMAIL WHICH PIONEERED DEVELOPMENT OF SOFTWARE
CONNECTIONS BETWEEN WIRELESS AND WIRED EMAIL SYSTEMS THE COMPANY IS TRYING
TO STAY AHEAD OF LARGER CONCERNS PLANNING TO GET INTO THIS GATEWAY BUSINESS
SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO

BASED IN SAN MATEO CALIF RADIOMAIL PARTOWNED BY MOTOROLA CORP DIDN'T
DISCLOSE ANY ESTIMATES FOR REVENUE OR PROFIT FROM THE LINK WITH DELL THE
COMPANY SAID DELL IN AUSTIN TEXAS AGREED TO PROVIDE RADIOMAIL SOFTWARE IN
THE STANDARD SOFTWARE PACKAGE THAT COMES WITH DELL'S LATITUDE PORTABLE
COMPUTERS IN ORDER TO TIE INTO RADIOMAIL'S NETWORK USERS WILL STILL HAVE
TO BUY A MODEM AND PAY A MONTHLY SUBSCRIPTION FEE OF 89 9402230069
940223 WORLD MARKETS TOKYO PRICES END MIXED AS INVESTOR FOCUS STAYS ON
CURRENCIES RATE GLOOM HURTS LONDON STOCKS  A WALL STREET JOURNAL
NEWS ROUNDUP

TOKYO EQUITIES ENDED MIXED TUESDAY INFLUENCED BY STOCKINDEX FUTURES WITH
THE MARKET FOCUSED ON FOREIGNEXCHANGE DEVELOPMENTS LONDON PRICES FELL BUT
FINISHED ABOVE INTRADAY LOWS AFTER MUSCLE ON WALL STREET PROVIDED LATE
SUPPORT

SYDNEY STOCKS REBOUNDED 11 ON BARGAIN HUNTING FOLLOWING THE PREVIOUS DAY'S
SLUMP HONG KONG SHARES RALLIED 21 BUT THE GAINS DIDN'T RECOVER THE LOSSES
OF THE DAY BEFORE SINGAPORE EQUITIES ALSO CLIMBED 21 AS RETAIL INVESTORS
PROPELLED A LATE SURGE AHEAD OF GOVERNMENT BUDGET PROPOSALS

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11557 UP 074 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN
MARKETS AND LOWER EUROPEAN MARKETS

PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 23406 UP 1025 OR 46 WITH DUNLOP OF MALAYSIA
POSTING A 98 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL
DEVICES STOCKS TRAILED AT 6832 DOWN 242 OR 34 WITH STRYKER OF THE
US SLIDING 38 IN LOCAL CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 43434 POINTS MONDAY
DROPPED 5131 TO 1934263 NEAR THE SESSION LOW IN TRADING WEDNESDAY THE
NIKKEI ROSE 3581 POINTS TO CLOSE THE MORNING SESSION AT 1937844 TUESDAY'S
FIRSTSECTION VOLUME WAS ESTIMATED AT 310 MILLION SHARES UP FROM 2344
MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED DECLINERS 614388 THE
TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE
1285 POINTS MONDAY EDGED UP 221 TO 157217

STOCKS RALLIED IN MORNING DEALINGS FOLLOWING THE US DOLLAR'S STRENGTH THE
PREVIOUS DAY AGAINST THE JAPANESE YEN IN CURRENCY DEALINGS BUT THE US
CURRENCY FELL BACK IN THE AFTERNOON SESSION AND STOCKS FOLLOWED IT LOWER
SHARES WERE LED BY INDEX FUTURES AS FIRST STRENGTH AND THEN WEAKNESS IN
FUTURES CONTRACTS PROMPTED ARBITRAGERS TO BUY AND THEN SELL IN THE STOCK
MARKET

THOUGH THE YEN'S CONTINUED RETREAT CHEERED INVESTORS THE MARKET REMAINED
NERVOUS ABOUT THE THREAT THAT THE CURRENCY MARKET POSES TO JAPAN'S ECONOMIC
RECOVERY OVERSEAS INVESTORS BOUGHT MORE ACTIVELY THAN THEY HAD IN RECENT
DAYS AS SOME OF THE PRESSURE FROM THE YEN'S SURGE HAD LIFTED A HIGH YEN
MAKES YENDENOMINATED ASSETS INCLUDING JAPANESE EQUITIES MORE EXPENSIVE
FOR HOLDERS OF OTHER CURRENCIES BUT PUBLIC PENSION FUNDS WHICH WERE
RUMORED TO HAVE BOUGHT MONDAY WERE QUIET TUESDAY INVESTORS ALSO WERE
AWAITING JAPAN'S OFFER TO THE US THIS WEEK TO TRY TO HEAD OFF ESCALATION
OF TRADE DISPUTES BETWEEN THE TWO COUNTRIES

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 166
POINTS TO 33337 AFTER BOUNCING UP FROM THE SESSION LOW OF 33203 THE FT
30STOCK INDEX DECLINED 93 POINTS TO 25765 VOLUME WAS 6252 MILLION
SHARES COMPARED WITH 5063 MILLION SHARES A DAY EARLIER

AFTER OPENING SLIGHTLY HIGHER THE BENCHMARK INDEX QUICKLY SLIPPED INTO
NEGATIVE TERRITORY WHERE IT REMAINED MOST OF THE DAY PRESSURED BY THE
MARCH STOCKINDEX FUTURES CONTRACT'S DISCOUNT TO THE MARKET INVESTORS WERE
DISAPPOINTED BY STATEMENTS BY SIX INDEPENDENT ECONOMIC ADVISERS TO BRITAIN'S
TREASURY WHO WERE BEARISH ABOUT FURTHER INTERESTRATE REDUCTIONS
OVERSHADOWING ENCOURAGING BRITISH ECONOMIC GROWTH DATA FOR THE FOURTH
QUARTER AND THE MARKET WAS NERVOUS AHEAD OF AN APPEARANCE IN THE US
CONGRESS BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN BUT HAD LITTLE REACTION
TO HIS REMARKS WHICH WERE SIMILAR TO THE VIEWS OF THE BRITISH ADVISERS BUT
AS BOTH POSITIONS DIDN'T PRESENT ANY SURPRISES STOCKS REBOUNDED A BIT

IN FRANKFURT SHARE PRICES SLIPPED IN EXTREMELY LOW VOLUME THE DAX 30STOCK
INDEX FELL 1191 POINTS TO 210762 DEEPENING THIS WEEK'S LOSS TO 4435
POINTS OF THE DAX ISSUES 23 RETREATED AND SEVEN ADVANCED THOUGH SOME
INVESTORS REMAINED ON THE SIDELINES AHEAD OF MR GREENSPAN'S TESTIMONY IN
THE US THE GERMAN MARKET'S SLACKNESS ALSO WAS ATTRIBUTED TO TESTING THE
WIND FOR STOCKS' DIRECTION

IN PARIS PRICES FIRMED FOLLOWING TWO LOSING SESSIONS EASILY BRUSHING ASIDE
PROFITTAKING WITH BOOSTS FROM STRONG FRENCH TRADE AND HOUSEHOLD CONSUMPTION
DATA IN AMSTERDAM DESPITE A STRONGER DOLLAR AND BOND PRICES STOCKS FELL
HURT BY DISAPPOINTING CORPORATE EARNINGS IN MILAN EQUITIES ENDED LOWER AS
ITALIAN POLITICAL PREOCCUPATIONS BEGAN TO INTRUDE WITH ELECTIONS SCHEDULED
FOR LATE NEXT MONTH IN STOCKHOLM PRICES DECLINED BROADLY AS ENTHUSIASM
WAS DAMPED PARTLY BY A TREND TOWARD HIGHER BOND YIELDS IN BRUSSELS PRICES
CONTINUED TO SLIDE IN THIN TRADING ON FEARS ABOUT LONGTERM INTEREST RATES

IN MEXICO CITY EQUITIES FELL FOR THE NINTH TIME IN 10 SESSIONS THE IPC
INDEX SLUMPED 18 AS PROFITTAKING CONTINUED WITH THE RETURN OF US
INVESTORS FOLLOWING A HOLIDAY MONDAY WHEN THE MEXICAN MARKET SANK ON A
REPORT OF DISAPPOINTING ECONOMIC GROWTH LAST YEAR THE MARKET HAS LOST 85
IN THE PAST TWO WEEKS

IN SYDNEY STOCKS BOUNCED BACK STRONGLY LED BY A 23 JUMP FOR THE BANKING
SECTOR WHILE GOLD SHARES WEAKENED IN LINE WITH THE METAL'S PRICE MONDAY'S
SELLOFF WAS CONSIDERED AN OVERREACTION TO FEARS OF HIGHER INTEREST RATES IN
THE US IN HONG KONG THE REBOUND CAME IN AN AFTERNOON RALLY THOUGH
TURNOVER REMAINED SLUGGISH PARTLY BECAUSE OF RESISTANCE BY INSITUTIONAL
INVESTORS WHO STAYED ON THE SIDELINES POISED TO SELL ALL SECTORS ROSE
PACED BY A 34 JUMP FOR PROPERTY ISSUES

IN SINGAPORE SHARES RACKED UP SOLID GAINS IN LATE DEALINGS MAINLY ON
BUYING OF BLUE CHIPS PROPERTY STOCKS AND SMALLER MALAYSIAN EQUITIES AHEAD
OF SINGAPORE'S BUDGET PROPOSALS WEDNESDAY PROPERTY STOCKS WERE HOT ON A
BET THAT THE BUDGET WILL SEEK A CUT TO 14 FROM 16 IN THE PROPERTY TAX
RATE ACTIVITY WAS DOMINATED BY RETAIL INVESTORS AND BUYING EXPANDED
GRADUALLY AS RESOLUTION OF A STATE ELECTION RACE BECAME CLEARER AND ON
POSITIVE CORPORATE EARNINGS IN KUALA LUMPUR THE MARKET JUMPED 16 DRIVEN
BY HEAVY TRADING IN SMALL AND SPECULATIVE STOCKS BUT BLUE CHIPS REMAINED
WEAK AS FOREIGN INVESTORS EITHER STAYED AWAY OR LIQUIDATED POSITIONS
PARTLY BECAUSE OF THE WEAK MALAYSIAN CURRENCY

IN TAIPEI PRICES FELL BROADLY IN LACKLUSTER TRADING CONTINUING A STUBBORN
CORRECTION DESPITE THE POSTING OF IMPRESSIVE CORPORATE PROFITS SENTIMENT
WAS DAMPED BY THE TAIWAN CENTRAL BANK'S ANNOUNCEMENT MONDAY THAT IT WOULDN'T
EASE RESTRICTIONS ON FOREIGN INVESTMENT

AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM UNILEVER SLUMPED 630 GUILDERS
OR 28 TO 22150 GUILDERS 11529 THE ANGLODUTCH CONSUMER PRODUCTS
COMPANY'S 1993 PROFIT FELL 98 TO A LOWERTHANEXPECTED 361 BILLION
GUILDERS 188 BILLION FROM A YEAR EARLIER HURT BY A SURGE IN ONETIME
CHARGES TO 137 BILLION GUILDERS FROM 233 MILLION GUILDERS EXCLUDING
SPECIAL ITEMS NET INCOME ROSE 29 TO 427 BILLION GUILDERS UNILEVER
RAISED THE ANNUAL DIVIDEND 17 TO 588 GUILDERS A SHARE CITING CONFIDENCE
IN THE UNDERLYING STRENGTH OF ITS BUSINESS

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
9402230068 940223 BUSINESS BRIEF LEUCADIA NATIONAL CORP FIRM'S BID
TO ACQUIRE STAKE IN ARGENTINE INSURER SUCCEEDS

LEUCADIA NATIONAL CORP NEW YORK SAID IT AND BANCO MERCANTIL A PRIVATE
ARGENTINE BANKING CONCERN LED BY THE WERTHEIM FAMILY SUCCESSFULLY BID TO
ACQUIRE A 60 INTEREST IN ARGENTINA'S CAJA DE AHORRO Y SEGURO SA A HOLDING
COMPANY BEING PRIVATIZED BY THE ARGENTINE GOVERNMENT

THE HOLDING COMPANY HAS ASSETS IN EXCESS OF 500 MILLION AND IS ARGENTINA'S
LARGEST INSURER AND ALSO HAS BANKING OPERATIONS WITH 44 RETAIL BRANCHES
LEUCADIA IS AN INSURANCE AND FINANCIAL HOLDING COMPANY

THE GROUP OFFERED TO PAY APPROXIMATELY 85 MILLION FOR THE 60 INTEREST THE
BID SUBJECT TO APPROVAL BY THE ARGENTINE GOVERNMENT IS EXPECTED TO CLOSE
DURING THE FIRST HALF OF 1994 9402230067 940223 MARKETING BRIEF 
CONCEPT COMMUNICATIONS INC CONTROL OF NOSTALGIA NETWORK IS ACQUIRED
FOR 115 MILLION

CONCEPT COMMUNICATIONS INC SAID IT ACQUIRED A CONTROLLING INTEREST IN
NOSTALGIA NETWORK INC FROM TIGER COMMUNICATIONS INC FOR 115 MILLION A
PRICE THAT VALUES NOSTALGIA SHARES AT 216 TO 230 APIECE

THE MOVE GIVES CONCEPT A SIGNIFICANT ADVANTAGE IN THE BIDDING TO BUY THE
CABLE NETWORK WHICH HAD BEEN THE SUBJECT OF SEVERAL OFFERS IN RECENT
MONTHS IN PARTICULAR IT NUDGES ASIDE INTERNATIONAL FAMILY ENTERTAINMENT
INC VIRGINIA BEACH VA WHICH HAD BEEN DISCUSSING A 2ASHARE OFFER FOR
THE COMPANY

THE PURCHASE BOOSTS CONCEPT'S STAKE TO ABOUT 115 MILLION SHARES OR 59 OF
THE COMPANY FROM 32 AS PART OF THE AGREEMENT CONCEPT IS TO INVEST 2
MILLION IN NOSTALGIA IN NEWLY ISSUED SHARES AT A PRICE OF AT LEAST 230 A
SHARE

NOSTALGIA IS A CABLE NETWORK THAT TARGETS VIEWERS OVER 45 YEARS OLD A
SPOKESMAN FOR NOSTALGIA WASN'T AVAILABLE TO COMMENT 9402230066 940223
BUSINESS BRIEF TURNER BROADCASTING NET PLUNGED 68 IN 4TH PERIOD AS
REVENUE EDGED DOWN

ATLANTA TURNER BROADCASTING SYSTEM INC SAID FOURTHQUARTER EARNINGS FELL
68 REFLECTING INCREASED COSTS IN ITS ENTERTAINMENT OPERATIONS AND A
ONETIME CHARGE

THE CABLEPROGRAMMING COMPANY SAID NET INCOME IN THE QUARTER DROPPED TO 95
MILLION OR FOUR CENTS A SHARE FROM 297 MILLION OR 11 CENTS A SHARE A
YEAR EARLIER EXCLUDING A CHARGE IN THE JUSTCOMPLETED QUARTER FOR EARLY
RETIREMENT OF DEBT AS WELL AS A ONETIME TAX BENEFIT IN THE 1992 QUARTER
OPERATING PROFIT ROSE TO 141 MILLION OR FIVE CENTS A SHARE FROM 107
MILLION OR FOUR CENTS A SHARE

FOURTHQUARTER REVENUE EDGED DOWN TO 535 MILLION FROM 5385 MILLION

WHILE THE RESULTS WERE SLIGHTLY BELOW SOME ANALYSTS' EXPECTATIONS INVESTORS
APPEARED TO BE ANYTHING BUT DISCOURAGED IN COMPOSITE TRADING YESTERDAY ON
THE AMERICAN STOCK EXCHANGE THE COMPANY'S CLASS A SHARES CLOSED AT 23 UP
1 OR 45 WHILE ITS CLASS B SHARES CLOSED AT 23375 UP 1 ALSO UP
45

THE CORE BUSINESSES ARE IN GOOD SHAPE SAID JOHN S REIDY AN ANALYST FOR
SMITH BARNEY BUT ALL THESE ENTERTAINMENT COMPANIES ARE BATTLING TO GET
THEIR NETWORKS INTO FOREIGN MARKETS AS QUICKLY AS POSSIBLE IT DOES TAKE
TIME AND MONEY TO GET PEOPLE TO PAY ATTENTION TO THESE THINGS OVER THERE

INDEED OPERATING RESULTS IN TURNER'S ENTERTAINMENT SEGMENT WHICH
INCLUDES CABLE NETWORKS TBS TNT AND THE CARTOON NETWORK WERE HURT BY
ABOUT 9 MILLION IN STARTUP COSTS ASSOCIATED WITH THE EUROPEAN LAUNCH OF
TNT AND THE CARTOON NETWORK THE COMPANY ALSO REPORTED 15 MILLION IN COSTS
RELATED TO THE THEATRICAL RELEASE OF THE MOVIE GETTYSBURG AS WELL AS
INCREASES IN OVERALL SELLING AND ADMINISTRATIVE COSTS

IN ALL THE DIVISION'S OPERATING PROFITS FELL 65 IN THE FOURTH QUARTER TO
186 MILLION FROM YEAREARLIER LEVELS

BY CONTRAST TURNER'S NEWS DIVISION WHICH INCLUDES THE CABLE NEWS NETWORK
REPORTED A 24 JUMP IN OPERATING PROFIT TO 604 MILLION THE SEGMENT
BENEFITED FROM INCREASES IN BOTH ADVERTISING AND SUBSCRIPTION REVENUE

MR REIDY AT SMITH BARNEY SAID HE DOESN'T EXPECT SHARP EARNINGS INCREASES AT
TURNER THIS YEAR AS THE COMPANY CONTINUES TO EXPAND AND CONSOLIDATES ITS
RECENT ACQUISITIONS NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT
PEOPLE SHOULD BE PREPARED FOR A YEAR OF BUILDING AS OPPOSED TO A YEAR OF
EARNINGSPERSHARE EXPANSION HE SAID 9402230065 940223 BUSINESS BRIEF
 SEDGWICK GROUP PLC BRITISH FIRM'S PRETAX PROFIT ROSE 24 SALES 18
IN '93

INSURANCE BROKER SEDGWICK GROUP PLC SAID THAT ITS PRETAX PROFIT ROSE 24 IN
1993 HELPED BY A 9 ADVANCE IN BROKERAGE AND FEE INCOME AS WELL AS THE
DOLLAR'S GAINS AGAINST STERLING PRETAX PROFIT JUMPED TO 705 MILLION
1045 MILLION FROM 567 MILLION SALES ROSE 18 TO 8097 MILLION FROM
6849 MILLION

THE PRETAX ADVANCE WAS IN LINE WITH MARKET FORECASTS AS WAS THE GROUP'S
DECISION TO MAINTAIN ITS FULLYEAR DIVIDEND AT SIX PENCE 89 CENTS A
SHARE

THE GROUP WAS UPBEAT ABOUT ITS IMMEDIATE PROSPECTS SAYING THAT WITH
ECONOMIC RECOVERY NOW EVIDENT IN THE US AND SOME ECONOMIC IMPROVEMENT IN
THE UK SEDGWICK'S BUSINESS IS WELL POSITIONED TO MAKE PROGRESS IN 1994
AGAINST A BACKGROUND OF A STRONG DOLLAR AND GENERALLY FIRM OR STABLE
INSURANCE PRICING WORLDWIDE 9402230064 940223 REICH TO SUGGEST PROGRAM 
FOR TRAINING UNEMPLOYED

WASHINGTON LABOR SECRETARY ROBERT REICH SAID HE PLANS TO INTRODUCE A
MAJOR WORKERRETRAINING PROGRAM TO CONGRESS NEXT MONTH

MR REICH TOLD REPORTERS THAT ONE OF THE HARDEST TRANSITIONS AMERICANS FACE
IS IN MOVING FROM JOB TO JOB HIS RETRAINING PROPOSAL SEEKS TO TURN THE
UNEMPLOYMENT INSURANCE SYSTEM INTO A REEMPLOYMENT SYSTEM

THE LABOR SECRETARY'S COMMENTS CAME AS PRESIDENT CLINTON FOCUSED ON TRAINING
AND EDUCATION IN A SPEECH TO THE AMERICAN COUNCIL ON EDUCATION

IN PUSHING FOR HIS GOALS 2000 LEGISLATION MR CLINTON SAID WE ENSHRINE
THE NATIONAL EDUCATION GOALS ESTABLISH NATIONAL STANDARDS BY WHICH WE CAN
DETER MINE WHETHER SCHOOLS ARE MEETING THOSE GOALS ENCOURAGE GRASSROOTS
REFORMS AND GIVE THE SCHOOLS THE FLEXIBILITY AND THE TOOLS THEY NEED TO MEET
THE GOALS 9402230063 940223 BUSINESS BRIEF SUMMIT BANCORP ACCORD
REACHED TO ACQUIRE CRESTMONT IN A STOCK SWAP

SUMMIT BANCORP SAID IT AGREED TO PURCHASE CRESTMONT FINANCIAL IN A
TRANSACTION VALUED AT 91 MILLION OR 2350 A SHARE

SUMMIT A 43BILLIONASSET BANKING COMPANY IN CHATHAM NJ IS PURCHASING
1BILLIONASSET CRESTMONT A THRIFT BASED IN EDISON NJ THROUGH A
TAXFREE STOCK SWAP EACH SHARE OF CRESTMONT WOULD BE EXCHANGED FOR BETWEEN
ONE NEW SHARE AND 115 NEW SHARES OF SUMMIT SUMMIT EXPECTS TO INCUR A
ONETIME 11 MILLION CHARGE FROM THE DEAL AS WELL AS A 23 MILLION CHARGE
RELATED TO THE DISPOSITION OF ASSETS BUT SAID THE COMBINED COMPANY WILL
REDUCE EXPENSES BY 11 MILLION ANNUALLY THE COMPANY SAID THE TRANSACTION
SHOULD CONTRIBUTE TO EARNINGS BY EARLY 1995

AS PART OF THE TRANSACTION SUMMIT SAID IT WOULD SELL ROUGHLY 100 MILLION
OF CRESTMONT PERFORMING AND NONPERFORMING COMMERCIAL REALESTATE LOANS TO
LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO 9402230062 940202 TEXAS
JOURNAL  WINNERS & LOSERS

 DALLAS OFFICIALS MANAGED TO ARRANGE LIABILITY INSURANCE FOR A COWBOY
VICTORY PARADE DESPITE THE MAYHEM THAT SULLIED LAST YEAR'S SUPER BOWL
CELEBRATION

 SPACEAGE DOCS PHYSICIANS AT THE JOHNSON SPACE CENTER NEAR HOUSTON
PERFORMED EYE EXAMS ON FIVE PATIENTS IN COLORADO VIA A NEW NASA SATELLITE

 DALLAS PIGS THE CITY COUNCIL PASSED AN ORDINANCE BANNING PEOPLE FROM
SLAUGHTERING ANIMALS IN THEIR YARDS

 ALAMODOME SAN ANTONIO'S SPIFFY NEW COVERED STADIUM LOST 17 MILLION IN
ITS FIRST FOUR MONTHS MUCH WORSE THAN CITY LEADERS PREDICTED

 FISHNAPPERS THE FBI IS INVESTIGATING THE THEFT OF A MILLION YOUNG HYBRID
CATFISH FROM SPAWNING PONDS IN BRAZORIA COUNTY

 TERESA RODRIGUEZ FEDERAL AUTHORITIES PLAN TO AUCTION MORE THAN 1
MILLION WORTH OF JEWELRY FURS AND A RANCH TO HELP PAY OFF THE DEBTS OF THIS
PROMINENT HOUSTON BUSINESSWOMAN SEE RELATED LETTER TEXAS JOURNAL 
LETTERS TO THE EDITOR TOO CRUEL WSJ FEB 23 1994 9402020078 YY94
MM02 9402230061 940223 BUSINESS BRIEF AMOCO CORP PRODUCTION UNIT
REPLACED MORE OIL GAS RESERVES IN '93

AMOCO CORP SAID ITS PRODUCTION UNIT SIGNIFICANTLY IMPROVED ITS OIL AND GAS
RESERVE REPLACEMENT PERFORMANCE LAST YEAR

THE OIL COMPANY BASED IN CHICAGO SAID IT REPLACED 89 OF ITS OIL AND GAS
RESERVES DURING 1993 INCLUDING THE ACQUISITION AND SALE OF PROPERTIES
DURING 1992 IT REPLACED ONLY 31 THE REPLACEMENT NUMBER INCLUDES
DISCOVERIES ADDITIONAL DELINEATION OF EXISTING FIELDS IMPROVED RECOVERY
TECHNIQUES AND UPGRADING ESTIMATES NOW CONSIDERED CONSERVATIVE

EXCLUDING THE US AMOCO REPLACED 150 OF ITS OIL AND GAS RESERVES
INCLUDING PURCHASES AND SALES OF PROPERTIES AMOCO WHICH WAS A NET SELLER
OF PROPERTIES FOCUSED THE BULK OF ITS SALES ON NONCORE CANADIAN ASSETS

NET PROVED RESERVES AT THE END OF 1993 TOTALED 511 BILLION BARRELS OF OIL
EQUIVALENT DOWN FROM 517 BILLION IN 1992 9402230059 940223 GM CEO
CONSIDERS SELLING NATIONAL CAR RENTAL UNIT

DETROIT GENERAL MOTORS CORP CHIEF EXECUTIVE OFFICER JOHN F SMITH JR
SAID IT IS GETTING PREPARED TO SELL ITS NATIONAL CAR RENTAL UNIT

MR SMITH SAID THAT GM IS REVIEWING ITS OWNERSHIP OF THE CARRENTAL COMPANY
BUT ISN'T PREPARED TO SELL IT YET HOWEVER ERIC FELDSTEIN GM'S ASSISTANT
TREASURER SAID THE AUTO MAKER WOULD CONSIDER AN ATTRACTIVE AND APPROPRIATE
OFFER

MR FELDSTEIN SAID NATIONAL CAR RENTAL WAS RESTORED TO PROFITABILITY AT THE
OPERATING LEVEL LAST YEAR AND THAT GM IS EXPECTING FURTHER IMPROVEMENTS
THIS YEAR

GM'S COMMENTS FOLLOW REPORTS THAT THE BIG THREE MAY BE LOOKING TO SELL THEIR
CARRENTAL CONCERNS THE AUTO COMPANIES HAVE CUT BACK ON UNPROFITABLE SALES
TO RENTALCAR COMPANIES AND BACKED AWAY FROM HEFTY DISCOUNTS

CHRYSLER CORP WHICH OWNS SNAPPY DOLLAR AND THRIFTY CARRENTAL COMPANIES
HAS SAID THAT IT WOULD CONSIDER OFFERS FORD MOTOR CO WHICH IS TRYING TO
INCREASE ITS STAKE IN HERTZ CORP TO 54 SAID IT INTENDS TO CONTINUE TO BE
INVOLVED WITH HERTZ GM IS THE SOLE OWNER OF NATIONAL CAR RENTAL
9402230058 940223 TEXAS JOURNAL  LETTERS TO THE EDITOR AS
GROUCHO SAID

REGARDING YOUR JAN 19 STORY ABOUT GERALD HINES THE HOUSTON DEVELOPER WHO
IS ASKING THE PUBLIC AND MEDIA NOT TO CALL THE AREA AROUND HIS GALLERIA MALL
THE GALLERIA AREA PLEASE DON'T SUE US BUT WE CALL THIS A GALLERIA
STORY JAN 19

THIS IS IRONIC SINCE HINES FOR YEARS TRIED TO ENCOURAGE THE USE OF THE WORD
GALLERIA AS A GENERIC DESCRIPTION OF ITS NEIGHBORHOOD BUT JUST RECENTLY
THE THREAT OF A HINES LAWSUIT FORCED THE OWNER OF A GASOLINE STATION TO
CHANGE ITS NAME FROM THE EXXON GALLERIA TO THE EXXON AT THE GALLERIA

THIS REMINDS ME OF A LETTER THAT GROUCHO MARX WROTE TO JACK WARNER WHEN
WARNER BROTHERS TRIED TO FORCE THE MARX BROTHERS TO CHANGE THE NAME OF THEIR
MOVIE A NIGHT IN CASABLANCA ON THE GROUNDS THAT WARNER BROTHERS
CONTROLLED THE TITLE CASABLANCA GROUCHO TOLD WARNER THAT HIS COMPANY
WOULD HAVE TO DROP THE WORD BROTHERS FROM ITS MOVIES BECAUSE THE MARX
BROTHERS HAD OWNED THAT WORD FOR A MUCH LONGER TIME THAN THE WARNER
BROTHERS

GROUCHO RECOGNIZED THAT THE ISSUE WAS EGO NOT INCOME 9402230057 940223
INTERNATIONAL SMITHKLINE SAYS PRETAX NET ROSE 9 IN 4TH QUARTER 
 BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL

LONDON SMITHKLINE BEECHAM PLC REPORTED HIGHER FOURTHQUARTER PRETAX
PROFIT AND HELD OUT PROSPECTS OF CONTINUED STRONG GROWTH THIS YEAR DESPITE
AN IMMINENT MANAGEMENT RESHUFFLE AND POTENTIALLY DIRE US PATENT EXPIRATION
OF ITS ANTIULCER DRUG TAGAMET

JAN LESCHLY THE INTENSE DANE WHO IS POISED TO BECOME CHIEF EXECUTIVE
OFFICER AT THE END OF APRIL SUGGESTED THAT SALES OF FOUR NEW PRODUCTS
WHICH MORE THAN DOUBLED IN 1993 COULD SPURT A FURTHER 30 THIS YEAR AND
OFFSET WHAT HE TERMED THE DILEMMA WE HAVE WITH TAGAMET

MR LESCHLY RULED OUT ACROSSTHEBOARD CUTS OF THOUSANDS OF EMPLOYEES IN THE
FORESEEABLE FUTURE BUT HE SAID WHERE MARKET OPERATIONS DEMAND THAT WE
STEP IN AND REDUCE OUR WORK FORCE OR MANUFACTURING SITES WE'LL DO IT

THE ANGLOAMERICAN HEALTHCARE GIANT SAID FOURTHQUARTER PRETAX PROFIT
CLIMBED 9 TO 328 MILLION 4863 MILLION FROM 301 MILLION A YEAR
EARLIER AS SALES SURGED 18 TO 166 BILLION FROM 141 BILLION EXCLUDING
ONETIME ITEMS PRETAX PROFIT IN THE LATEST QUARTER CLIMBED A ROBUST 21
THE COMPANY SAID

FOR THE FULL YEAR PRETAX PROFIT INCREASED 12 TO 122 BILLION AND SALES
23 TO 604 BILLION THE WEAKER BRITISH POUND EXAGGERATED THE RATE OF SALES
GROWTH MEASURED IN CONSTANT CURRENCIES SALES ROSE 10 BOTH IN THE LATEST
QUARTER AND THE FULL YEAR THE COMPANY SAID HOWEVER BECAUSE OF SMITHKLINE'S
POLICY OF HEDGING CURRENCY EXPOSURE PROFIT WAS LESS AFFECTED BY
EXCHANGERATE SWINGS

REFLECTING LAST YEAR'S PROFIT GROWTH AND VIRTUAL ELIMINATION OF THE
COMPANY'S ONCEMASSIVE DEBT SMITHKLINE DIRECTORS APPROVED A 24 INCREASE IN
THE FULLYEAR DIVIDEND TO 109 PENCE A SHARE SMITHKLINE'S AMERICAN
DEPOSITARY SHARES FELL 125 CENTS OR 04 TO CLOSE AT 30125 IN NEW YORK
STOCK EXCHANGE COMPOSITE TRADING YESTERDAY

SALES OF FOUR NEW PRODUCTS LAUNCHED IN THE PAST THREE YEARS 
ANTIDEPRESSANT SEROXAT ANTIARTHRITIC DRUG RELAFEN HEPATITIS A VACCINE
HAVRIX AND KYTRIL A MEDICINE TO PREVENT NAUSEA IN CANCERCHEMOTHERAPY
PATIENTS MORE THAN DOUBLED TO 463 MILLION AND NOW ACCOUNT FOR 13 OF
TOTAL DRUGDIVISION SALES 9402230056 940223 BUSINESS BRIEF GREENWICH
PHARMACEUTICALS INC LAWSUIT ALLEGES STATEMENTS ON DRUG WERE MISLEADING

A SHAREHOLDER FILED SUIT AGAINST GREENWICH PHARMACEUTICALS INC FORT
WASHINGTON PA CLAIMING THE COMPANY MADE MISLEADING AND FRADULENT
STATEMENTS ABOUT ITS ARTHRITIS DRUG

THE LAWSUIT FILED IN DELAWARE COURT OF CHANCERY NAMES OFFICERS AND
DIRECTORS OF THE COMPANY LAST MONTH A FOOD AND DRUG ADMINISTRATION
ADVISORY PANEL DENIED GREENWICH APPROVAL TO MARKET THE DRUG CALLED
THERAFECTIN AFTER FINDING IT HASN'T PROVEN TO BE EFFECTIVE

A GREENWICH SPOKESMAN SAID THE COMPANY HADN'T SEEN THE LAWSUIT AND HAD NO
COMMENT 9402230055 940223 BUSINESS BRIEF MARTIN MARIETTA CORP 
PENTAGON IS EVALUATING PLEA TO RENEGOTIATE SPACE JOBS

THE DEFENSE DEPARTMENT SAID IT IS EVALUATING A PROPOSAL BY MARTIN MARIETTA
CORP THAT WOULD ALLOW THE COMPANY TO RENEGOTIATE ITS US SPACELAUNCH
CONTRACTS

THE BETHESDA MD COMPANY HAD NOTIFIED THE PENTAGON THAT IT WOULD ABANDON
ITS TENTATIVE 2085 MILLION PURCHASE OF GENERAL DYNAMICS CORP'S
SPACELAUNCH BUSINESS UNLESS THE GOVERNMENT WERE WILLING TO SHARE WITH
MARTIN MARIETTA SOME OF THE 400 MILLION THAT THE US COULD SAVE OVER 10
YEARS BY THE PURCHASE

IT WASN'T CLEAR WHETHER THE FEDERAL REVIEW WOULD DELAY A FINAL AGREEMENT
BETWEEN MARTIN MARIETTA AND GENERAL DYNAMICS WHICH WAS EXPECTED BY APRIL
30 THE EVALUATION ISN'T YET COMPLETE SAID A MILITARY SPOKESMAN

MARTIN MARIETTA WANTS TO MERGE ITS TITAN IV HEAVYLAUNCH ROCKET BUSINESS
WITH GENERAL DYNAMICS' MEDIUMLIFT ATLASCENTAUR SYSTEM MARTIN MARIETTA HAS
SAID THAT THE DEAL DOESN'T MAKE SENSE UNLESS IT IS ALLOWED TO RENEGOTIATE
THE TERMS OF ITS TITAN CONTRACTS 9402230054 940223 REACHING OUT UNDER
STRONG PRESSURE BANKS EXPAND LOANS FOR INNERCITY HOMES  MELLON
SEEKS OUT BORROWERS IN PHILADELPHIA PROGRAM GROUPS TEACH BUDGETING 
 IT'S EVERYTHING I WANTED'  BY KENNETH H BACON STAFF
REPORTER OF THE WALL STREET JOURNAL

PHILADELPHIA WHEN RUBBIE CLARK SET OUT TO BUY HER FIRST HOME SHE HAD
THREE STRIKES AGAINST HER A BLEMISHED CREDIT RECORD LOW SAVINGS AND THE
PROSPECT THAT SHE COULD FIND AN AFFORDABLE HOUSE ONLY IN AN INNERCITY
NEIGHBORHOOD WHERE BANKS HAVE LONG BEEN RELUCTANT TO LEND

BUT AFTER COMPLETING A FINANCIALCOUNSELING PROGRAM WITH A COMMUNITY GROUP
MS CLARK REPAIRED HER CREDIT RECORD AND IN 1991 QUALIFIED FOR A MORTGAGE
FROM MELLON PSFS THE PHILADELPHIA UNIT OF MELLON BANK CORP THE 43YEAROLD
OFFICE WORKER BORROWED 95 OF THE COST OF HER 36000 ROW HOUSE WHERE SHE
LIVES WITH HER FOSTERDAUGHTER AND NEPHEW

HER LOAN IS PART OF A QUIET REVOLUTION AT AMERICAN BANKS WHICH ARE
REWRITING THEIR LENDING RULES TO MAKE IT EASIER FOR MINORITIES AND
LOWERINCOME PEOPLE TO BORROW THE BANKS ARE BEING SHAMED INTO ACTION BY
COMMUNITY GROUPS AND THREATENED BY FEDERAL REGULATORS POLICING FAIRLENDING
LAWS

THE CLINTON ADMINISTRATION HAS PLACED A HIGH PRIORITY ON THE ISSUE JUST
LAST WEEK THE TREASURY DEPARTMENT'S OFFICE OF THRIFT SUPERVISION REJECTED
APPLICATIONS FROM FOUR THRIFTS IN NEW JERSEY AND OHIO TO TRADE IN THEIR
FEDERAL CHARTERS FOR STATE LICENSES THE AGENCY RULED THAT THEY HADN'T MET
THE PROVISIONS OF THE 1977 COMMUNITY REINVESTMENT ACT WHICH REQUIRES BANKS
AND SAVINGS AND LOANS TO LEND IN ALL AREAS IN WHICH THEY TAKE DEPOSITS

INCREASINGLY BANKS SUCH AS MELLON ARE WORKING WITH THE ASSOCIATION OF
COMMUNITY ORGANIZATIONS FOR REFORM NOW CHURCHES AND OTHER COMMUNITY GROUPS
TO REACH OUT TO NEW BORROWERS IT WAS AFTER ATTENDING A CHURCH MEETING ON
HOW TO BUY A HOUSE THAT MS CLARK DECIDED TO APPLY FOR A LOAN DESPITE HER
DREAM OF HOME OWNERSHIP SHE HAD NEVER SOUGHT A MORTGAGE FROM BANKERS
BECAUSE THERE WAS NOTHING THAT MADE ME THINK THEY WOULD HAVE GIVEN ME ONE

NOW HER HOUSE IN A NORTH PHILADELPHIA NEIGHBORHOOD CALLED NICETOWN HAS
EVERYTHING I WANTED HARDWOOD FLOORS AND AN ENCLOSED FRONT PORCH SHE
SAYS AND IT HAS ONE ADVANTAGE SHE DIDN'T EXPECT HER MONTHLY MORTGAGE
PAYMENT INCLUDING TAXES AND INSURANCE TOTALS 319 COMPARED WITH THE 425
A MONTH SHE HAD PAID TO RENT A ONEBEDROOM SUBURBAN APARTMENT

SLOWLY IT SEEMS THE US FINANCIAL SYSTEM IS CHANGING MELLON BANK SEEKS
OUT APPLICANTS FROM INNERCITY NEIGHBORHOODS AND HAS MORE THAN DOUBLED ITS
LOANS TO LOW AND MODERATEINCOME PEOPLE A DECADE AGO ACORN SAYS IT
WRAPPED A MELLON OFFICE IN RED TAPE IN PROTEST OF ALLEGED RED LINING NOW
ACORN AND THE BANK WORK SIDE BY SIDE FLEET FINANCIAL GROUP INC AFTER
YEARS OF PRESSURE HAS JUST ANNOUNCED A PROGRAM TO BOOST LENDING TO SUCH
HOME BUYERS AND TO MINORITYOWNED BUSINESSES NATIONSBANK CORP AND CHEMICAL
BANKING CORP ALREADY HAVE LAUNCHED SIMILAR PROGRAMS

THE BANKS ARE LEARNING THAT THEY CAN MAKE A PROFIT ON SUCH LENDING AND
DEVELOP NEW CUSTOMERS AS WELL THROUGH COUNSELING AND OTHER PROGRAMS WE
BELIEVE IT'S THE RIGHT WAY TO GET AT THIS ISSUE OF NEIGHBORHOOD INVESTMENT
SAYS PAUL BEIDEMAN PRESIDENT OF MELLON PSFS MELLON HAS SIMILAR PROGRAMS
THROUGHOUT ITS BUSINESS AREA IN PENNSYLVANIA MARYLAND DELAWARE AND BOSTON
MASS BUT THE PHILADELPHIA PROGRAM IS THE MOST AGGRESSIVE

THE OUTREACH EFFORTS FOLLOW THREE YEARS OF DAMNING STUDIES BY THE FEDERAL
RESERVE BOARD THAT WERE BASED ON RACIALLENDING DATA COLLECTED UNDER THE
HOME MORTGAGE DISCLOSURE ACT THE FIGURES SHOWED THAT BLACKS WERE MORE THAN
TWICE AS LIKELY TO BE TURNED DOWN FOR MORTGAGES AS WHITES WITH SIMILAR
INCOMES

BANKERS INITIALLY CRITICIZED THE REPORTS AS MISLEADING BECAUSE THEY FOCUSED
ON THE RACE RATHER THAN THE CREDIT RISK AS MEASURED BY OTHER LOANS
OUTSTANDING INCOME STABILITY AND SAVINGS OF MORTGAGE APPLICANTS BUT THE
REPORTS GAVE NEW EVIDENCE OF DISCRIMINATORY LENDING PATTERNS TO COMMUNITY
GROUPS AND GALVANIZED REGULATORS AND THE JUSTICE DEPARTMENT TO ACT

IN RESPONSE LENDERS WHILE DENYING CONSCIOUS DISCRIMINATION ARE CHANGING
THEIR PRACTICES THE ERA OF FINGERPOINTING HAS LONG PASSED SAYS STEPHEN
ASHLEY PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION WE MUST ADDRESS
DISCRIMINATION HEADON WE MUST INCREASE OUR OUTREACH AND MARKETING EFFORTS
TO COMMUNITIES

MS CLARK OWES HER MORTGAGE TO A COOPERATIVE EFFORT BY PHILADELPHIA BANKS
AND COMMUNITY GROUPS TO HELP MINORITIES AND LOW AND MODERATEINCOME PEOPLE
BUY HOUSES MELLON PSFS WHICH MADE MS CLARK'S LOAN EXTENDED 573 LOANS TO
LOW AND MODERATEINCOME BORROWERS UNDER ITS NEIGHBORHOOD BANKING PROGRAM
LAST YEAR UP FROM 223 SUCH MORTGAGES IN 1990 THE MELLON UNIT WHICH
OPERATES ONLY IN THE PHILADELPHIA AREA SAYS 55 OF THESE LOANS WENT TO
MINORITY BORROWERS LAST YEAR

OVERALL PROGRESS IS SLOW HOWEVER DESPITE EFFORTS TO EXPAND MINORITY
LENDING THE FED NUMBERS SHOW THAT IN 1992 THE LAST YEAR FOR WHICH FEDERAL
FIGURES ARE AVAILABLE BLACKS WERE REJECTED TWICE AS OFTEN AS WHITES FOR
LOANS BUT THE REJECTION RATES DON'T REFLECT AN INCREASE IN CREDIT BECAUSE
SUCH RATES MEASURE ONLY DENIALS AS SHARE OF TOTAL APPLICANTS THE FIGURES
DON'T FOCUS ON LENDING VOLUME MOREOVER THE BANKS TRYING HARDEST TO SERVE
THE INNER CITY ARE BY REACHING OUT TO LESS CREDITWORTHY APPLICANTS MORE
LIKELY TO HAVE HIGH REJECTION RATES SO DESPITE SUCH STUBBORNLY HIGH RATES
MORE CREDIT IS FLOWING TO PEOPLE AND AREAS THAT BANKS HAD AVOIDED

LOANS TO LOWERINCOME PEOPLE HAVE RISEN IN 1992 CONVENTIONAL HOMEPURCHASE
LOANS TO BORROWERS WITH INCOMES BELOW THE LOCAL MEDIAN ROSE 271 MORE THAN
DOUBLE THE GROWTH IN LOANS TO BORROWERS WHOSE INCOMES ARE EQUAL TO OR
GREATER THAN THE MEDIAN ACCORDING TO THE FEDERAL RESERVE BOARD'S LATEST
DATA AND IN 1992 THE NUMBER OF LOANS TO BLACKS ROSE FASTER THAN THOSE TO
WHITES

PART OF WHAT IS CHANGING IS THE PERCEPTION THAT POORER BORROWERS NECESSARILY
CARRY GREATER RISKS OF DEFAULT THAT JUST ISN'T TRUE BANKERS INCREASINGLY
SAY A LOWINCOME HOMEOWNER WILL GO TO UNUSUAL LENGTHS TO KEEP FROM HAVING A
HOUSE REPOSSESSED CUSTOMERS REALLY DON'T WANT TO LOSE THEIR PROPERTY MR
BIEDEMAN SAYS AND WHILE POORER PEOPLE ARE MORE LIKELY TO MISS PAYMENTS THAN
WEALTHIER PEOPLE THE HIGHER DELINQUENCIES DON'T NECESSARILY MEAN HIGHER
LOSSES HE SAYS BECAUSE MELLON WORKS CLOSELY WITH DELINQUENT BORROWERS AND
CREDIT COUNSELORS TO HELP GET PAYMENTS BACK ON TRACK

ANOTHER MYTH IS THAT POOR PEOPLE CAN'T AFFORD MORTGAGES INDEED MANY AS
MS CLARK ONCE DID ARE PAYING RENTS THAT ARE HIGHER IN PARTS OF
PHILADELPHIA A MELLON OFFICIAL SAYS YOU CAN BUY A HOUSE FOR 20000
EASILY AND PAY 180 A MONTH

THE CONSORTIUM FORMED BY MELLON AND SEVEN OTHER PHILADELPHIA LENDERS CALLED
THE DELAWARE VALLEY MORTGAGE PLAN WORKS WITH COMMUNITY GROUPS TO HELP
PEOPLE WITH INCOMES OF 36000 OR LESS PURCHASE HOUSES THAT COST 57000 OR
LESS IN ANY NEIGHBORHOOD WITH HOMES AT THAT PRICE LEVEL FREQUENTLY THE
BORROWERS REQUIRE EXTENSIVE CREDIT COUNSELING FROM COMMUNITY GROUPS BEFORE
THEY QUALIFY FOR LOANS THE COUNSELORS HELP THEM WORK OUT PAYMENT PLANS FOR
OLD DEBTS DESIGN SAVINGS PLANS TO ASSEMBLE DOWN PAYMENTS AND TEACH BASIC
BUDGETING SKILLS

THE LOAN TERMS ARE ADJUSTED TO FIT LOWINCOME BORROWERS ABOUT 80 OF WHOM
ARE SINGLE MOTHERS A KEY TO THE PROGRAM'S SUCCESS IS FLEXIBLE UNDERWRITING
STANDARDS THAT ALLOW WELFARE SOCIAL SECURITY OR FOODSTAMP BENEFITS TO COUNT
AS INCOME AND ALLOW BORROWERS WITHOUT BANK ACCOUNTS OR CREDIT CARDS TO PROVE
THEIR CREDITWORTHINESS BY SHOWING THAT THEY HAVE RELIABLY PAID THEIR RENT
AND UTILITY BILLS

SINCE THE GOVERNMENT BEGAN TO HIGHLIGHT RACIAL DISPARITIES IN REJECTION
RATES THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN
MORTGAGE CORP THE TWO GOVERNMENTCHARTERED STOCKHOLDEROWNED AGENCIES
THAT PURCHASE MORTGAGES FROM LENDERS HAVE LAUNCHED NEW PROGRAMS TO HELP
FINANCE HOME BUYING IN INNER CITIES AND POOR RURAL AREAS A 1992 LAW
REQUIRES THESE COMPANIES TO DEVOTE MORE OF THEIR RESOURCES TO LOW AND
MODERATEINCOME PROGRAMS

IN ITS NEIGHBORHOOD BANKING PROGRAM MELLON WAIVES A DEMAND THAT APPLICANTS
WORK FOR TWO YEARS IN THE SAME JOB OR INDUSTRY ALL THAT IS REQUIRED IS A
STEADY INCOME MELLON ALSO LETS LOAN APPLICANTS USE CASH FOR DOWN PAYMENTS
AN ARRANGEMENT THAT HELPS LOWINCOME APPLICANTS WHO IN MANY CASES DON'T
HAVE BANK ACCOUNTS AND APPLICANTS ALSO GET A BREAK ON INTEREST RATES MS
CLARK'S 7126 RATE WAS 15 PERCENTAGE POINTS BELOW THE MARKET RATE WHEN SHE
GOT HER MORTGAGE WITH A DOWN PAYMENT OF ONLY 5

MORTGAGES ARE THE SPINE OF THE NEIGHBORHOOD BECAUSE HOMEOWNERS ENCOURAGE
INVESTMENT AND DEVELOPMENT SAYS BRUCE DORPALEN ACORN'S DIRECTOR OF BANKING
PROGRAMS IN PHILADELPHIA IF YOU CAN MAINTAIN PROPERTY VALUES THEN PEOPLE
CAN BORROW ON THEIR HOUSES TO GET THEIR ROOF FIXED OR TO SEND THEIR KIDS TO
COLLEGE HE SAYS

MS CLARK GOT HER LOAN FROM MELLON AFTER GOING THROUGH A CREDITCOUNSELING
PROGRAM AT ACORN HER INCOME AS A SERVICE ASSOCIATE AT PENN MUTUAL INSURANCE
CO WAS UNDER 30000 WHEN SHE BOUGHT THE HOUSE BUT WITHOUT COUNSELING
SOME DELINQUENT STUDENTLOAN PAYMENTS AND OTHER CREDIT PROBLEMS PROBABLY
WOULD HAVE PREVENTED HER FROM GETTING A LOAN

SINCE MANY LOWINCOME BORROWERS NEED HELP GETTING THEIR FINANCES IN LINE
MELLON RECENTLY HIRED NELSON ACEVEDO A FORMER COMMUNITY WORKER TO HELP
BORROWERS WHO ARE HAVING PROBLEMS MEETING THEIR PAYMENTS HE MEETS WITH
PEOPLE WHO MISS A PAYMENT AND IF NECESSARY HE HELPS THEM WORK OUT
ALTERNATIVE PAYMENT PLANS TO AVOID FORECLOSURE SOMETIMES HE ARRANGES
ASSISTANCE WITH ENERGY BILLS OR OTHER TEMPORARY HELP FROM STATE AND LOCAL
AGENCIES TO PULL PEOPLE THROUGH PERIODS OF UNUSUAL FINANCIAL STRAIN

THE COUNSELORS AND COMMUNITY GROUPS SEEM TO HELP BANKERS BRIDGE THE CULTURAL
GAP THAT HAS LONG MADE THE FINANCIAL SYSTEM INACCESSIBLE TO POOR OR MINORITY
AREAS BANKERS HAVE VERY LITTLE IN COMMON WITH PEOPLE IN POOR COMMUNITIES
REP JOSEPH KENNEDY SAYS BUT THE MASSACHUSETTS DEMOCRAT SAYS BANKS IN
BOSTON AND ELSEWHERE ARE BEGINNING TO REALIZE THAT THEY CAN BUILD STRONG
CUSTOMER BASES IN COMMUNITIES ONCE SPURNED DESPITE A TREMENDOUS AMOUNT
OF SUSPICION ON BOTH SIDES OF THE STREET

EVEN THOUGH EXPANDING INTO ONCESHUNNED NEIGHBORHOODS MELLON STILL PERFORMS
BADLY WHEN MEASURED BY DENIAL RATES EVEN IN ITS NEIGHBORHOOD BANKING
PROGRAM IT REJECTED 19 OF THE APPLICATIONS FROM BLACK APPLICANTS LAST
YEAR COMPARED WITH 6 OF WHITE APPLICATIONS AND 8 FROM HISPANICS BECAUSE
OF OUR OUTREACH WE'RE GOING TO SEE MORE APPLICATIONS AND WE'RE GOING TO
LEND MORE BUT WE'RE ALSO GOING TO TURN DOWN MORE MR BEIDEMAN EXPLAINS
ALL REJECTED APPLICATIONS RECEIVE A SECOND REVIEW

BUT WHILE THE DISPARITY BETWEEN REJECTIONS RATES REMAINS HIGH THE NUMBER OF
LOANS MELLON PSFS MAKES TO MINORITIES HAS RISEN SHARPLY IN 1990 MELLON
MADE 51 LOANS TO BLACKS AND 39 LOANS TO HISPANICS THROUGH ITS NEIGHBORHOOD
BANKING PROGRAM LAST YEAR IT MADE 165 LOANS TO BLACKS AND 128 TO
HISPANICS IN THE PHILADELPHIA AREA IN FACT MELLON IS MAKING MORE THAN
TWICE AS MANY LOANS THROUGH ITS NEIGHBORHOOD BANKING PROGRAM AS IT DOES
THROUGH ITS CONVENTIONAL MORTGAGE PROGRAM

WHEN CYNTHIA HENDERSON WENT TO MELLON TO DISCUSS A LOAN THE LENDING OFFICER
QUICKLY DECIDED THAT SHE WOULDN'T QUALIFY FOR A NORMAL LOAN BECAUSE SHE HAD
HELD HER CURRENT JOB ONLY SIX MONTHS BUT THE MELLON LENDING OFFICER
RECOMMENDED THAT SHE GO TO ACORN FOR HELP

THERE ALLISON HUGHES LEARNED THAT MS HENDERSON HAD JUST RETURNED TO WORK
AFTER A DIVORCE RECLAIMING A JOB AT A GENERAL ELECTRIC CO PLANT THAT SHE
HAD HELD FOR SEVERAL YEARS BEFORE HER MARRIAGE MS HUGHES WAS ABLE TO SORT
OUT HER EMPLOYMENT RECORD AND HELP MS HENDERSON PLAN TO ASSEMBLE THE 5
DOWN PAYMENT ON A 44000 TWOBEDROOM HOUSE SHE ULTIMATELY GOT A MORTGAGE
FROM MELLON AND LIVES IN AN ATTRACTIVE ROW HOUSE WITH HER THREEYEAROLD
DAUGHTER

I LOVE MELLON SHE SAYS NOTING THAT SHE ALSO HAS A CAR LOAN FROM THE
BANK

OFTEN FINANCIAL COUNSELING CAN GET APPLICANTS PAST THE REJECTION THRESHOLD
IT'S OUR BELIEF THAT DISCRIMINATION WHERE IT OCCURS OFTEN AFFECTS
APPLICANTS WITH SOME BLEMISHES COMPTROLLER OF THE CURRENCY EUGENE LUDWIG
SAYS IN MANY CASES SUCH ASSISTANCE REQUESTING EXPLANATION OF
DEROGATORY CREDIT INFORMATION SUGGESTING WAYS TO IMPROVE AN APPLICANT'S
REPORTED INCOME OR REDUCE THE APPLICANT'S CURRENT DEBT OR OFFERING AN
APPLICANT LOAN OPTIONS THAT MIGHT IMPROVE HIS OR HER ABILITY TO MEET
UNDERWRITING STANDARDS CAN MEAN THE DIFFERENCE BETWEEN DENIAL AND
ACCEPTANCE

MORE PEOPLE ARE DROPPING BY ACORN'S SECONDFLOOR WALKUP OFFICE IN A
BATTERED BUILDING NEXT TO A FORMER OPERA HOUSE NOW USED AS A CHURCH RICHARD
SAFFOLD A RELATIVELY NEW COUNSELOR IS HELPING A 37YEAROLD MOTHER OF TWO
WHO IS INTERESTED IN A LOAN

HOW MANY SINGLE PARENTS DO YOU DEAL WITH SHE ASKS

A LOT MAYBE 70 TO 80 HE SAYS

RELIEVED SHE BEGINS TO ANSWER QUESTIONS ABOUT HER FINANCES AND CREDIT
RECORD SHE CONCEDES THAT SHE HAS MORE THAN 1000 IN UNPAID BILLS SOME OF
THEM DELINQUENT FOR SEVERAL YEARS MR SAFFOLD TELLS HER THAT SHE HAS TO
SETTLE THE BILLS AND GET THEM REMOVED FROM HER CREDIT REPORT BEFORE SHE CAN
GET A MORTGAGE

FOR ANYONE WHO HAS NEGATIVE COMMENTS ON THEIR CREDIT REPORT THE BANK DOES
REQUIRE THAT YOU COME TO BUDGET CLASS HE ADDS HE SIGNS HER UP FOR A
SERIES OF THREE CLASSES TO TEACH HER HOW TO SET UP A MONTHLY BUDGET AND
MANAGE CREDIT

STEVEN LIPIN IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9402230053 940223
LETTERS TO THE EDITOR KEYBOARD ATHLETES

IN OUR FEB 11 LETTER ON REPETITIVE STRAIN INJURY A TYPOGRAPHICAL ERROR
DISTORTED AN IMPORTANT POINT WE WROTE LIKE ATHLETES EMPLOYEES MUST KEEP
THEIR UPPER BODIES FIT TO WORK AT THE KEYBOARD NOT JUST KEEP INDEED
WE WISH COMPUTER USERS WOULD KEEP THEIR UPPER BODIES FIT MOST OF THEM
DON'T WHICH IS PART OF THE REASON THEY GET INJURED 9402230052 940223
VANCE IS NAMED AS A MEDIATOR IN MACY CASE  BANKRUPTCY JUDGE'S
ACTION IS GREETED WITH DISMAY BY CREDITORS' ATTORNEYS  BY
PATRICK M REILLY AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET
JOURNAL

NEW YORK IN A SURPRISE MOVE A FEDERAL BANKRUPTCY JUDGE NAMED CYRUS R
VANCE THE FORMER SECRETARY OF STATE TO ACT AS A MEDIATOR TO SPEED THE
CREATION OF A BANKRUPTCYREORGANIZATION PLAN FOR RETAILER RH MACY & CO

THE MOVE MAY DERAIL DISCUSSIONS ABOUT A REORGANIZATION PLAN THAT ALREADY
WERE UNDER WAY BETWEEN MACY GENERAL ELECTRIC CAPITAL A UNIT OF GENERAL
ELECTRIC CO AND MUTUAL FUND GIANT FIDELITY INVESTMENTS THE UNUSUAL MOVE
BY JUDGE BURTON LIFLAND OF THE FEDERAL BANKRUPTCY COURT IN MANHATTAN WAS
WIDELY VIEWED WITH DISMAY BY CREDITORS' ATTORNEYS WHO FEAR THE APPOINTMENT
WILL SLOW MACY'S CURRENT REORGANIZATION EFFORTS

THE APPOINTMENT IS CONSIDERED A HIGHLY UNORTHODOX MOVE AT A TIME WHEN MACY
ITSELF APPEARED TO BE MAKING PROGRESS WITH ITS SENIOR CREDITORS HARVEY
MILLER MACY'S BANKRUPTCY ATTORNEY WITH THE LAW FIRM WEIL GOTSHAL & MANGES
SAID OF MR VANCE I HOPE HE DOES BETTER HERE THAN HE DID IN BOSNIA A
REFERENCE TO MR VANCE'S RECENT DIPLOMATIC EFFORTS TO BRING PEACE TO THE
BALKANS

JUDGE LIFLAND SAID MR VANCE WAS BEING NAMED IN AN EFFORT TO MOVE MACY'S
BANKRUPTCY PROCEEDINGS OUT OF THE COURT'S CLUTCHES BY END OF THE YEAR
MACY FILED FOR FEDERAL BANKRUPTCYLAW PROTECTION FROM CREDITORS IN JANUARY
1992 AND THE BIG RETAILER WAS IN COURT YESTERDAY ASKING FOR AN EXTENSION OF
ITS EXCLUSIVE RIGHT TO FILE A REORGANIZATION PLAN JUDGE LIFLAND GRANTED
MACY'S REQUEST WHICH WAS SUPPORTED BY MOST OF ITS CREDITORS TO EXTEND FOR
ABOUT FOUR MONTHS TO AUG 1

HOWEVER THE APPEARANCE OF MR VANCE IS LIKELY TO OPEN UP THE NEGOTIATIONS
TO OTHER CREDITOR PROPOSALS THE JUDGE'S ORDER REQUIRES MACY TO FILE WITH
MR VANCE BY MARCH 8 A TERM SHEET SPECIFYING THE PRINCIPAL TERMS AND
CONDITIONS OF A REORGANIZATION PLAN BUT THE JUDGE'S ORDER ALSO SPECIFIES
THAT ANY INTERESTED PARTIES THAT WISH TO SUBMIT A PROPOSED PLAN OF
REORGANIZATION AS WELL AS CREDITORS INCLUDING FEDERATED DEPARTMENT STORES
INC GENERAL ELECTRIC CAPITAL AND FIDELITY INVESTMENT MAY LIKEWISE BASED
ON A REQUEST BY THE MEDIATOR SUBMIT A SIMILAR TERM SHEET AT THAT TIME THE
ORDER SAID INTERESTED PARTIES COULD JOIN TOGETHER IN SUBMITTING A TERM
SHEET A RELATIVELY BRIEF DOCUMENT THE COURT HOPES WILL BE NO LONGER THAN
TEN PAGES

MYRON E ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO HAS
BEEN FIGHTING TO KEEP THE RETAILER INDEPENDENT APPEARED BUOYED BY THE
JUDGE'S SURPRISE APPOINTMENT IT'S A BIT UNUSUAL BUT WE SUPPORT ANYTHING
THAT BRINGS THIS TO A SUCCESSFUL CONCLUSION HE SAID MR ULLMAN IN RECENT
MONTHS HAS BEEN FENDING OFF CINCINNATIBASED FEDERATED ITS RIVAL AND MOST
SENIOR CREDITOR

FEDERATED PAID 1093 MILLION TO BUY CONTROL OF HALF OF A 1 BILLION SENIOR
CLAIM FROM PRUDENTIAL INSURANCE CO OF AMERICA IN ORDER TO GAIN A SEAT WITH
CREDITORS AT THE MACY REORGANIZATION NEGOTIATIONS

MR ULLMAN WOULDN'T COMMENT ON A REPORT IN YESTERDAY'S WALL STREET JOURNAL
THAT GENERAL ELECTRIC AND FIDELITY ARE DISCUSSING A POSSIBLE INVESTMENT IN A
REORGANIZED MACY FIDELITY OWNS 490 MILLION OF SENIOR BANK DEBT

JUDGE LIFLAND WILL HOLD A HEARING ON MARCH 3 ABOUT MR VANCE'S APPOINTMENT
SOME CREDITORS MAY OBJECT BECAUSE MR VANCE'S LAW FIRM SIMPSON THACHER &
BARTLETT NAMED AS THE MEDIATOR'S COUNSEL ALSO REPRESENTS CHEMICAL BANK A
MACY CREDITOR AND AGENT BANK OF THE RETAILER'S WORKINGCAPITAL FACILITY

THE SUBJECT OF A MEDIATOR HADN'T PREVIOUSLY ARISEN IN THE HEARINGS AND THE
APPOINTMENT IS THOUGHT TO BE THE FIRST TIME A MEDIATOR HAS BEEN APPOINTED IN
A BANKRUPTCY PROCEEDING IN THE SOUTHERN DISTRICT OF NEW YORK MEDIATORS
OCCASIONALLY HAVE BEEN USED IN OTHER JURISDICTIONS WHERE BANKRUPTCY
PROCEEDINGS HAVE BEEN BOGGED DOWN

ALREADY SOME LAWYERS HAVE SOUGHT TO UNSEAT MR VANCE AS SOON AS JUDGE
LIFLAND MADE HIS ANNOUNCEMENT MR MILLER AND JOEL ZWEIBEL AN ATTORNEY FOR
A GROUP OF BANKS WERE CALLED INTO THE JUDGE'S CHAMBERS WHERE IT'S BELIEVED
THEY TRIED TO DISSUADE HIM FROM MAKING THE APPOINTMENT NO LUCK MR
ZWEIBEL SAID WHEN THE ATTORNEYS REEMERGED SEVERAL MINUTES LATER

MR VANCE'S APPOINTMENT ENDS JUNE 22 SUBJECT TO EXTENSION BY THE COURT

ASKED WHETHER THE APPOINTMENT WAS OF CONCERN TO FEDERATED WHICH ITSELF HAS
TALKED TO CREDITORS ABOUT FORMING ITS OWN COMPETING REORGANIZATION PLAN
DAVID HEIMAN A JONES DAY REAVIS & POGUE BANKRUPTCY ATTORNEY FOR
FEDERATED SAID I'M NOT CONCERNED ABOUT IT MAYBE IT CAN HELP

THIS WILL SLOW THE PROCESS DOWN SAID ONE SENIOR CREDITOR ECHOING
SENTIMENTS EXPRESSED BY BANKRUPTCY ATTORNEYS PRESENT IN COURT CREDITORS
EXPECT THAT IT WILL TAKE MR VANCE SOME TIME TO GET UP TO SPEED ON THE
COMPLEXITIES OF MACY'S BANKRUPTCY PROCEEDING BEFORE NEGOTIATIONS CAN BEGIN
IN EARNEST BUT ROBERT MILLER AN ATTORNEY WITH BERLACK ISRAELS & LIBERMAN
VIEWED THE APPOINTMENT OPTIMISTICALLY

INDEED THE DEVELOPMENT REASSURED MACY'S BONDHOLDERS MACY BONDS DUE IN
1998 WHICH HAD DROPPED ON THE NEWS OF TALKS BETWEEN MACY GENERAL ELECTRIC
AND FIDELITY RALLIED TO CLOSE AT 405 CENTS ON THE DOLLAR OR 405 FOR EACH
1000 BOND SUBORDINATED BONDS DUE IN 2001 CLOSED AT 15 DOWN SUBSTANTIALLY
FROM FRIDAY'S CLOSE OF 20 BUT ABOVE THE DAY'S LOW OF 13 THE ZEROCOUPON
BONDS DUE THE SAME YEAR CLOSED AT 4 DOWN FROM 7 1/2 9402230051 940223
TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX 
DEVELOPMENTS  BY TOM HERMAN

PERSUADING TAX DODGERS TO START FILING RETURNS ISN'T EASY THE IRS FINDS

ABOUT 75 MILLION PEOPLE WHO SHOULD BE FILING RETURNS EACH YEAR AREN'T DOING
SO IRS OFFICIALS ESTIMATE TO COMBAT THIS PROBLEM THE IRS HAS BEEN
OFFERING LENIENT PAYMENT TERMS AND WAIVERS OF PROSECUTION THE IRS MESSAGE
FILE BEFORE WE CATCH YOU AND WE WILL BE MORE UNDERSTANDING WHILE THIS
APPROACH HAS LED TO PROGRESS IRS OFFICIALS CONCEDE THEY STILL HAVE A LONG
WAY TO GO

IN THE YEAR ENDED SEPT 30 THE IRS RECEIVED 399531 RETURNS FROM PEOPLE WHO
PREVIOUSLY WERE NONFILERS THAT'S A GOOD START SAYS LAWRENCE GIBBS A
WASHINGTON LAWYER AND A FORMER IRS COMMISSIONER BUT HE AND OTHER EXPERTS
AGREE THAT IS ONLY A SMALL FIRST STEP EVEN MANY TAX LAWYERS ACCOUNTANTS
AND PROFESSIONAL RETURN PREPARERS FAIL TO FILE THUS THE IRS WILL CONTINUE
A SPECIAL PROGRAM AIMED AT TAX FIRMS

UNDER THAT PROGRAM TAX FIRMS MAY ASK PARTNERS AND EMPLOYEES TO SIGN CONSENT
FORMS ALLOWING THE FIRM TO FIND OUT DIRECTLY FROM THE IRS WHETHER OR NOT
THAT PERSON HAS FILED RETURNS

WHAT'S BEHIND THE BIG DROP IN THE NUMBER OF TAX RETURNS FILED SO FAR

HORRIBLE WINTER WEATHER IRS OFFICIALS SAY FILINGS ARE DOWN MOST SHARPLY AT
FIVE OF THE SEVEN IRS CENTERS SERVING CENTRAL AND EASTERN STATES HIT
REPEATEDLY BY SNOW SLEET AND FREEZING RAIN BUT WEATHER MAY NOT BE THE SOLE
EXPLANATION FOR THE 10 PLUNGE IN THE NUMBER OF INDIVIDUAL RETURNS FILED AS
OF FEB 11 SOME TAX LAWYERS AND ACCOUNTANTS SAY THEY SUSPECT MORE PEOPLE
MAY DELAY FILING BECAUSE OF CONFUSION ABOUT THE NEW TAX LAW OR BECAUSE THEY
OWE MORE TAXES

I DO THINK WINTER WEATHER IS A FACTOR BUT THE NEW TAX LAW ALSO MAY WELL BE
AN IMPORTANT REASON SAYS SHIRLEY PETERSON A LAWYER AT STEPTOE & JOHNSON
IN WASHINGTON AND A FORMER IRS COMMISSIONER RETURNS FILED THROUGH FEB 11
TOTALED 213 MILLION DOWN FROM 237 MILLION IN THE LIKE 1993 PERIOD BUT
THE IRS ISN'T WORRIED IT SAYS THE VOLUME HAS PICKED UP AND IT PREDICTS THE
EARLY FILING GAP WILL CLOSE QUICKLY

THE IRS FLUNKS A TEST OF ITS OWN FINANCIAL MANAGEMENT AND RECORD KEEPING

A REPORT BY THE GENERAL ACCOUNTING OFFICE A CONGRESSIONAL WATCHDOG AGENCY
FOUND SIGNIFICANT WEAKNESSES IN THE WAY THE IRS MANAGED ITS FINANCES IN
FISCAL 1992 THE GAO SAYS IT COULDN'T EVEN AUDIT ABOUT 43 BILLION OF THE
67 BILLION THAT THE IRS REPORTED SPENDING BECAUSE THE IRS COULD NOT
ACCOUNT FOR ALL OF THE FUNDS THE REPORT ALSO FOUND EXAMPLES OF DUPLICATE
IRS PAYMENTS TO VENDORS

THE GAO CITED 23 IRS OVERPAYMENTS FOR ALMOST 175000 TO ONE VENDOR SINCE
1988 IRS OFFICIALS ALSO WERE LATE IN PAYING MANY BILLS THE AGENCY PAID
ABOUT 673000 IN LATEPAYMENT INTEREST IN 1992 OTHER BILLS WERE PAID TOO
EARLY RESULTING IN LOST INTEREST INCOME THE GAO CONCLUDES THE IRS'S DATA
ON ITS OPERATING FUNDS WERE UNRELIABLE

IRS OFFICIALS SAY MANY CHANGES ALREADY HAVE BEEN MADE AND SHOULD SOLVE MOST
PROBLEMS CITED IN THE REPORT

FED UP WITH A TAXPROTEST CASE US DISTRICT JUDGE PATRICK CONMY OF
BISMARCK ND RECALLS DRACULA THE LEGENDARY VAMPIRE WHO WOULD NOT DIE
AND GAINED IN STRENGTH AND EVIL WITH EACH NEW TRANSGRESSION HE ADDS THIS
FILE IS BEGINNING TO ACQUIRE THE STATUS OF IMMORTALITY AND APPARENTLY NO
SHARPENED STAKES ARE ON HAND

THE SUPREME COURT WILL HEAR ARGUMENTS MONDAY IN THE CLOSELY WATCHED CASE OF
US VS CARLTON AT ISSUE CAN CONGRESS CHANGE TAX LAWS RETROACTIVELY THE
DECISION MAY AFFECT CHALLENGES TO RETROACTIVE TAX INCREASES IN LAST YEAR'S
LAW

BULGING BACKLOG AS OF DEC 31 IRS OFFICIALS COUNTED 577 REGULATIONS THAT
STILL NEED TO BE WRITTEN THAT IS UP FROM 571 AT THE END OF NOVEMBER

THE IRS EXPECTS TO RECEIVE MORE THAN 117 MILLION INDIVIDUAL TAX RETURNS THIS
YEAR THAT INCLUDES 592 MILLION FORM 1040S DOWN FROM 606 MILLION IN 1992
AND 19 MILLION FORM 1040AS DOWN FROM 202 MILLION IT ALSO EXPECTS 186
MILLION RETURNS ON FORM 1040EZ UP FROM 166 MILLION

STATE TAXES NEED A MAJOR OVERHAUL SAYS A REPORT BY TWO GROUPS

STATE TAX SYSTEMS ARE GROWING MORE INEQUITABLE AND UNRESPONSIVE TO
ECONOMIC CHANGES ACCORDING TO THE NATIONAL CONFERENCE OF STATE LEGISLATURES
AND THE NATIONAL GOVERNORS' ASSOCIATION THE TAX SYSTEMS WERE DESIGNED
MAINLY IN THE 1930S FOR A NATION OF SMOKESTACK INDUSTRIES IN AN ECONOMIC
DEPRESSION THE REPORT SAYS REVISIONS ARE NEEDED TO REFLECT GROWTH IN
SERVICES INTERNATIONAL BUSINESS NEW DATABASED INDUSTRIES AND AN OLDER
POPULATION

THE REPORT URGES MORE STATES TO CONSIDER EXTENDING SALES TAXES TO INCLUDE
MORE SERVICES SUCH AS HEALTH CLUBS HAIR CARE UTILITY SERVICES AMUSEMENTS
AND REPAIR AND INSTALLATION SERVICES IT ALSO RECOMMENDS MORE INTERSTATE
COOPERATION IN TAXING BUSINESSES AND IT SUGGESTS MORE STATES CONSIDER
COUPLING THEIR INCOME TAXES TO THE FEDERAL BASE

SPENDING CUTS ALONE CAN'T END THE DETERIORATION OF STATE TAX BASES AND
STATE TAX SYSTEMS' INEQUITIES AND INEFFICIENCIES THE REPORT WARNS

BRIEFS MORE BUZZWORDS NOWHERE INCOME WHICH MEANS CORPORATE PROFITS
EARNED IN THE US BUT NOT TAXED IN ANY STATE BECAUSE OF VARIOUS REASONS
SUCH AS LIMITS ON STATE TAXING JURISDICTION  SHADES OF THE GODFATHER
A LETTER FROM IRS COMMISSIONER RICHARDSON TO DONALD CHAPIN OF THE GENERAL
ACCOUNTING OFFICE BEGINS DEAR MR DON SORRY THE IRS SAYS JUST A TYPO
9402230050 940223 COMMERCE SECRETARY PROPOSES CHANGES FOR
TELECOMMUNICATIONS BILL IN SENATE  BY MARY LU CARNEVALE STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON COMMERCE SECRETARY RON BROWN IS RECOMMENDING THAT
TELECOMMUNICATIONS LEGISLATION IN THE SENATE INCORPORATE CHANGES THAT COULD
HASTEN COMPETITION IN THE CABLE AND TELEPHONE INDUSTRIES

IN DRAFT REMARKS PREPARED FOR TESTIMONY TODAY BEFORE THE COMMERCE COMMITTEE
MR BROWN BROADLY ENDORSES THE BILL THAT WAS INTRODUCED THIS MONTH BY
CHAIRMAN ERNEST HOLLINGS D SC WHILE EMPHASIZING THE BROAD LEVEL OF
CONSENSUS BETWEEN THE GOALS OF THE LEGISLATION AND THOSE OF THE CLINTON
ADMINISTRATION MR BROWN SUGGESTS THAT THE BILL INCORPORATE THE
ADMINISTRATION'S PLAN TO SET UP A FLEXIBLE STREAMLINED REGULATORY FRAMEWORK
FOR COMPANIES THAT PROVIDE INTERACTIVE VIDEO SERVICES

BEYOND THAT THE TESTIMONY OBTAINED BY THE WALL STREET JOURNAL OFFERS
CHANGES TO SEVERAL PROVISIONS AND PLEDGES THAT THE ADMINISTRATION WILL WORK
WITH LAWMAKERS TO FORGE A CONSENSUS AMONG OTHER THINGS MR BROWN SUGGESTS
ELIMINATING THE BILL'S SPECIFIC DETAILS ON A SOCALLED UNIVERSAL SERVICE
SYSTEM AND INSTEAD SUBSTITUTING MORE GENERAL GUIDANCE TO STATE AND FEDERAL
REGULATORS

THE UNIVERSAL SERVICE PROVISIONS OF THE BILL ARE A TOP PRIORITY FOR SEN
HOLLINGS WHO COMES FROM A LARGELY RURAL STATE AND WHETHER HE WILL AGREE TO
CHANGES IS UNCERTAIN IN LARGE PART THE PROVISIONS ARE DESIGNED TO ENSURE
THAT CUSTOMERS IN RURAL AREAS CAN OBTAIN TELECOMMUNICATIONS SERVICES
ESPECIALLY AS NEW COMPETITORS ENTER THE MARKET FOR LOCAL PHONE SERVICE

WHILE MR BROWN URGES FEWER DETAILS ON HOW TO ACCOMPLISH UNIVERSAL SERVICE
HE SUGGESTS MORESPECIFIC LANGUAGE GOVERNING HOW TELEPHONE COMPANIES ALLOW
EMERGING COMPETITORS AND OTHER COMMUNICATIONS COMPANIES TO CONNECT WITH
THEIR NETWORKS THAT HE ARGUES COULD HELP COMPETITION TAKE HOLD SOON
ALONG THE SAME LINES MR BROWN RECOMMENDS IMMEDIATELY ELIMINATING STATE
RULES THAT BAR COMPETITION TO THE TELEPHONE COMPANIES THE LEGISLATION
ALLOWS THOSE RULES TO STAY IN PLACE FOR TWO YEARS WHILE A UNIVERSAL SERVICE
PROGRAM IS ESTABLISHED

TO GIVE CABLE COMPANIES MORE COMPETITION SOONER MR BROWN SUGGESTS LETTING
PHONE COMPANIES BUILD NETWORKS THAT CAN TRANSMIT VIDEO SIGNALS AND MAKE
CHANNEL CAPACITY AVAILABLE TO PROGRAMMERS THAT AREN'T AFFILIATED WITH THE
PHONE COMPANY THE REQUIREMENT SHOULD CREATE MARKET OPPORTUNITIES FOR
COMPETING PROVIDERS OF VIDEO SERVICES HE SAYS THEREBY REDUCING PRICES
AND EXPANDING THE DIVERSITY OF SERVICES AVAILABLE TO TELEVISION VIEWERS

THE COMMERCE SECRETARY ALSO PROPOSES CHANGING THE MARKET TEST THAT WOULD LET
THE SEVEN REGIONAL BELL COMPANIES PROVIDE LONGDISTANCE SERVICES INSTEAD OF
SEN HOLLINGS'S REQUIREMENT THAT THE BABY BELLS MEET SEVERAL CONDITIONS
INCLUDING PROVING THAT THEY FACE ACTUAL COMPETITION MR BROWN URGES A
JUSTICE DEPARTMENT REVIEW BEFORE ALLOWING A BABY BELL TO PROVIDE
LONGDISTANCE SERVICE DEPARTMENT OFFICIALS WOULD HAVE TO FIND THAT THE
COMPANY POSED NO SUBSTANTIAL POSSIBILITY OF HARM TO THE LONGDISTANCE
MARKET 9402230049 940223 HEARD ON THE STREET MEXICAN RETAILER CIFRA
WITH A HIGH MULTIPLE AND DISAPPOINTING RESULTS FALLS INTO DISFAVOR 
 BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL

MEXICO CITY CIFRA HAS LONG BEEN A FAVORITE OF THE PROS WHO INVEST IN
EMERGING MARKETS AS A CONSUMERSPENDING PLAY WHAT COULD BE BETTER THAN
MEXICO'S NO 1 RETAILER WHICH EVEN HAS A JOINT VENTURE WITH WALMART
STORES

BUT NOW CIFRA WHICH ISSUED A DISAPPOINTING 1993 PROFIT ESTIMATE LAST WEEK
IS FALLING INTO DISFAVOR AMONG SOME BIG MONEY MANAGERS THEY SAY THE STOCK
IS TOO EXPENSIVE EVEN THOUGH CIFRA IS STILL AMONG THE BESTMANAGED
COMPANIES IN MEXICO

TRUE THE COMPANY'S JOINT VENTURE WITH WALMART APPEARS SUCCESSFUL AND
CIFRA'S VIPS DINERS AND AURRERA FOOD AND MERCHANDISE WAREHOUSE STORES ARE
ADMIRED FOR THEIR QUALITY AND SELECTION BUT THE STOCK TRADES AT ABOUT 28
TIMES ESTIMATED 1994 EARNINGS DOUBLE THE MEXICANMARKET MULTIPLE SUDDENLY
SUCH FUNDAMENTALS MATTER TO INVESTORS IN MEXICO'S MARKET

A FEW YEARS AGO WHEN MEXICO WAS PUTTING ITS ECONOMIC HOUSE IN ORDER US
INVESTORS WANTED BIG STOCKS THAT WOULD RALLY ALONG WITH THE ECONOMY THEY
WERE WILLING TO SHRUG OFF A HIGH MULTIPLE COMFORTED BY THE NOTION THAT A
MEXICAN WALMART WOULD BE EASY TO SELL ON THE BOLSA BUT TODAY THE BIG
INVESTORS ARE MORE AT EASE WITH MEXICO'S ECONOMY THEY CARE MORE ABOUT
SHORTTERM EARNINGS PERFORMANCE THEY LOOK HARDER AT STOCK VALUES THEY WANT
MORE FEEDBACK FROM EXECUTIVES

LIKE MANY MEXICAN COMPANIES CIFRA IS VERY DIFFICULT TO TALK TO SAYS
MARLA MARRON AN ANALYST AT BEAR STEARNS IN NEW YORK WHO NONETHELESS IS
RECOMMENDING THE STOCK

LAST WEEK CIFRA STARTLED ANALYSTS WITH A PRELIMINARY EARNINGS REPORT FOR
THE YEAR IT DECLINED TO SPELL OUT THE REASONS FOR A SURPRISINGLY WEAK
FOURTH QUARTER AND DIDN'T EVEN SPECIFY THE QUARTER'S RESULTS SAYING ALL
WOULD BE EXPLAINED IN A MARCH SHAREHOLDERS' MEETING EXECUTIVES DECLINED TO
ELABORATE

CIFRA SAID 1993 NET INCOME GREW 22 AS MUCH AS EIGHT PERCENTAGE POINTS
BELOW SOME ANALYSTS' EXPECTATIONS OPERATING EARNINGS ROSE 7 SALES CLIMBED
15 ALSO BELOW EXPECTATIONS

PREVIOUSLY INVESTORS COUNTED ON CIFRA'S BIG MONEYMARKET GAINS TO CARRY
EARNINGS THROUGH SLOW PERIODS IN 1992 FINANCIAL INCOME ACCOUNTED FOR AS
MUCH AS 35 OF ALL EARNINGS CIFRA HAS SUCH PULL WITH SUPPLIERS THAT IT PAYS
WITHIN ABOUT 45 DAYS FOR MERCHANDISE THAT IT TURNS OVER FASTER IN 35
DAYS THAT CREATES A CASH SURPLUS ON WHICH CIFRA HAS EARNED HEAPS OF
INTEREST INCOME BY INVESTING IN HIGHYIELDING MEXICAN TREASURY BILLS BUT
SHORTTERM MEXICAN TBILL RATES HAVE FALLEN TO 9

INVESTORS NOW WANT TO SEE SOME MUSCLE IN CIFRA'S REAL
BUSINESSMERCHANDISING YET MEXICAN CONSUMER SPENDING IS WEAK SORAYA
BETTERTON MANAGER OF LATIN AMERICAN PORTFOLIOS AT GT CAPITAL MANAGEMENT
IN SAN FRANCISCO FIGURES INVESTORS ARE PAYING A MULTIPLE OF ABOUT 40 TIMES
CIFRA'S NONFINANCIAL EARNINGS THAT IS KIND OF HIGH SHE SAYS ESPECIALLY
WHEN RETAIL SALES IN MEXICO CITY CIFRA'S MAIN MARKET FELL NEARLY 7 IN THE
FIRST NINE MONTHS OF LAST YEAR MS BETTERTON HAS SOLD THE STOCK

HOW CAN THE MARKET PAY AROUND 40 TIMES OPERATING EARNINGS FOR A COMPANY
THAT IS GROWING THOSE EARNINGS AT AROUND 7 SAYS GASPAR QUIJANO PAREDES
AN ANALYST AT VECTOR A MEXICAN BROKER

INVESTORS MAY BE BETTING ON RAPID FUTURE GROWTH BUT MS BETTERTON DOESN'T
SEE IT CIFRA LIKE WALMART SHE SAYS IS MOVING TO AN EVERYDAYLOWPRICE
APPROACH THAT WILL SHRINK GROSS PROFIT MARGINS

BEAR STEARNS'S MS MARRON SAYS THE COMPETITION IN MEXICO IS INTENSE AND IS
MOVING TOWARD CUTTHROAT BUT SHE SAYS CIFRA IS SMART IN RECOGNIZING THEY
WILL HAVE TO GIVE UP MARGIN AND GO TO VOLUME SHE THINKS THE STOCK WILL
OUTPERFORM THE BOLSA THIS YEAR AS IT HAS FOR TWO YEARS

CIFRA HAS THREE STOCK CLASSES MUTUAL FUNDS AND INDIVIDUAL INVESTORS
FREQUENTLY GO RIGHT TO THE MEXICAN BOLSA TO BUY CLASS C SHARES WHICH LACK
VOTING RIGHTS CLASS B TRADED OVERTHECOUNTER IN NEW YORK IN THE FORM OF
AN AMERICAN DEPOSITARY RECEIPT DOES HAVE VOTING RIGHTS SO DO CLASS A
SHARES BUT FOREIGN INVESTORS CAN ONLY PARTICIPATE IN THE PRICE GAINS OF
THIS STOCK WHICH IS HELD IN A TRUST IN MEXICO

ROBERT MEYER AT MORGAN STANLEY ASSET MANAGEMENT SAYS HE'S SELLING CIFRA AND
PREFERS TO BUY MEXICAN BANKS THAT ARE TRADING AT AROUND 10 TIMES EARNINGS
JEAN VAN DE WALLE MANAGER OF LATIN AMERICAN EQUITIES AT ALLIANCE CAPITAL
SAYS HE WILL STICK WITH HIS CIFRA SHARES FOR NOW BUT AT TODAY'S VALUATION
HE WON'T BUY MORE

CIFRA IS A BEAUTIFUL COMPANY SAYS VECTOR'S MR QUIJANO BUT RIGHT NOW
THE STOCK IS OVERVALUED

YEAR ENDED DEC 31 1993

NINE MONTHS ENDED SEPT 30 1993

ALL FIGURES IN NEW MEXICAN PESOS EXCHANGE RATE AT YEAR END 3107 PESOS PER
DOLLAR 9402230048 940223 TEXAS JOURNAL  WINNER & LOSERS

 NONSMOKERS ATTORNEY GENERAL MORALES FILED LAWSUITS AGAINST FIVE LARGE
FASTFOOD CHAINS DEMANDING BETTER PROTECTION FOR CHILDREN AGAINST
SECONDHAND SMOKE

 LAREDO GOV RICHARDS SAID A FOURTH INTERNATIONAL BRIDGE WILL BE APPROVED
HERE BY FEDERAL OFFICIALS AS MY GIFT TO THE PEOPLE OF LAREDO

 AUSTIN SALAMANDERS THE US FISH AND WILDLIFE SERVICE PROPOSED ADDING
THE BARTON SPRINGS SALAMANDER TO THE FEDERALLY PROTECTED LIST OF ENDANGERED
SPECIES

 STEEPLECHASE CLUB FORT WORTH VICE OFFICERS ISSUED FIVE CITATIONS AFTER
MEMBERS OF THIS EXCLUSIVE CLUB WERE CAUGHT GAMBLING AND OGLING STRIPPERS

 ZAPATA COUNTY THE COUNTY JUDGE SHERIFF AND COUNTY CLERK WERE ARRESTED
ON DRUGTRAFFICKING AND MONEYLAUNDERING CHARGES

 HOUSTON OAKS THE MAYOR'S OFFICE MAY SOON LAUNCH A DRIVE TO GET PEOPLE TO
STOP PLANTING WILLOWS AND OAKS BECAUSE THEY EMIT HYDROCARBONS A KEY
COMPONENT OF SMOG 9402230047 940223 LEISURE & ARTS A NEW EYE ON
AMERICAN CULTURE AT CBS  BY DOROTHY RABINOWITZ

SOMETHING NEW AND DIFFERENT SEEMS TO HAVE HAPPENED TO THE TV MAGAZINE SHOW
OR TO BE PRECISE TO ONE MAGAZINE SHOW CBS'S EYE TO EYE WITH CONNIE
CHUNG THURSDAYS 910 PM EST HAS LET CORRESPONDENT BERNARD GOLDBERG
LOOSE UPON THE WORLD TO TAKE UP MATTERS LIKE THE BREAKDOWN OF CIVILITY THE
ABRIDGMENT OF FREE SPEECH ON CAMPUSES THE PLAGUE OF WELFARE AND THE LIKE

A FAIR NUMBER OF PEOPLE WATCHING MR GOLDBERG AT WORK THIS SEASON MUST
INDEED HAVE WONDERED IF THEY COULD ACTUALLY BE TUNED TO A NETWORK DURING
PRIME TIME FOR ALONE AMONG TV JOURNALISTS THE VETERAN CBS CORRESPONDENT
HAS SET HIMSELF THE SPECIFIC TASK OF DOCUMENTING THE DECLINE OF AMERICAN
LIFE AND CULTURE AND ITS MAIN CAUSES AS LISTED ABOVE THE SHARPNESS AND
HEFT OF HIS ESSAYS MUST COME AS A PARTICULAR SHOCK TO PEOPLE ACCUSTOMED TO
SAY THE KIND OF REPORTORIAL INQUIRY ON DISPLAY IN BARBARA WALTERS'S RECENT
INTERVIEW WITH KATHERINE ANN POWER ON 20/20

MS POWER RECALL IS THE FORMER RADICAL ACTIVIST WHO DROVE THE GETAWAY CAR
FOR ACCOMPLICES WHO KILLED POLICE OFFICER WALTER SCHROEDER DURING A BANK
ROBBERY IN A BOSTON SUBURB IN 1970

TONIGHT BARBARA HAS HER EXCLUSIVE STORY THE PROMO BLARED AND SOON WE
WERE ON OUR WAY WITH MS WALTERS RADIATING LETHAL LEVELS OF HEARTFELT
SYMPATHY AS IS HER WONT ASKING WHAT SHOULD I CALL YOU ALICE THE
FUGITIVE'S UNDERGROUND NAME OR KATHERINE ON WE WENT THEN TO THE MORE
DELICATE MATTER OF THE KILLING OF OFFICER SCHROEDER THE POLICEMAN WAS MS
WALTERS ASSURED US A VICTIM OF THE VIETNAM WAR RIGHT HERE IT WOULD HAVE
BEEN HELPFUL TO HAVE SOMEONE LIKE MR GOLDBERG AROUND TO POINT OUT THAT THE
OFFICER WAS IN FACT A VICTIM OF ROBBERS AND MURDERERS WHOM MS POWER
CHAUFFEURED FROM THE CRIME SCENE

NEVER MIND INTERVIEWER AND INTERVIEWEE WERE SOON ON TO GREATER AND MORE
IMPORTANT MATTERS FOR INSTANCE WE LEARN THAT MS POWER WAS A MEMBER OF THE
GIRL SCOUTS AND IN CHILDHOOD VERY OUTGOING AS WELL AS A CHURCHGOER AND AN
HONOR STUDENT SHE WAS WE WERE FURTHER PRIVILEGED TO LEARN VERY INTERESTED
IN CURRENT EVENTS

IN DUE TIME VARIOUS FRIENDS AND HELPERS APPEAR ON AIR TO BEAR WITNESS TO
THE FORMER FUGITIVE'S PAIN AND DEPRESSION AND GOODNESS MS POWER HERSELF
SEEMS TO HAVE KEPT UP NICELY WITH ALL THE LATEST BABBLEFASHION IN HER YEARS
UNDERGROUND SO IT IS THAT WE LEARN THAT SHE HAD THE COURAGE TO EMERGE FROM
HIDING BECAUSE HER PARENTS GAVE HER UNCONDITIONAL LOVE AND ALSO BECAUSE
HER AUTHENTICITY DEMANDED IT HER SON INFORMS US IN TURN THAT HIS MOTHER
HAD TO SURRENDER IN ORDER TO FINISH HER HEALING

AS IT HAPPENS THE RADICALIZED '60S AND ITS HEIRS ARE ALSO AMONG THE
SUBJECTS COVERED IN ONE OF MR GOLDBERG'S BEST WORKS ON EYE TO EYE THE
PIECE TITLED RUDE AWAKENING TRACES THE DEVASTATING CHANGES IN AMERICAN
SOCIETY THAT HAVE TAKEN PLACE OVER THE PAST 30 YEARS OR SO PACKED WITH A
RANGE OF INTELLIGENT COMMENTATORS RARELY SEEN ANYWHERE ON TELEVISION AND
WITH CONVERSATIONS IN WHICH IDEAS ARE EXCHANGED BETWEEN PEOPLE WHO ACTUALLY
HAVE SOME THE SEGMENT TRAINS A COLD AND STEADY EYE ON OUR CULTURAL
BREAKDOWN

MR GOLDBERG POINTS OUT THAT IN 1963 THE TOP BESTSELLER WAS HAPPINESS IS A
WARM PUPPY A STORY ABOUT SNOOPY AND CHARLIE BROWN TODAY ONE OF THE
BIGGEST BESTSELLERS IS PRIVATE PARTS BY HOWARD STERN A DISK JOCKEY WHO
MR GOLDBERG POINTS OUT BUILT HIS ENTIRE REPUTATION ON VULGARITY IN 1963
HE GOES ON TO SHOW 65 OF AMERICAN PEOPLE WERE BORN OUT OF WEDLOCK TODAY
THE FIGURE IS 30 AMONG BLACKS IN INNER CITIES THE NUMBER IS CLOSER TO
80

ONE ADVENTUROUS PORTION OF THE FILM HAS MR GOLDBERG STROLLING WITH THE
WRITER PETE HAMILL PAST A BLIGHTED NEW YORK CITY PARK FILLED WITH ADDICTS
AND THUGS AND DOWN STREETS TAKEN OVER BY OTHER RIFFRAFF EVEN AS THE TWO
JOURNALISTS EXCHANGE VIEWS ON WHEN AND HOW THINGS BEGAN TO GO SO WRONG A
BOTTLE TOSSED BY STREET PEOPLE IRATE AT THE PRESENCE OF CAMERAS SAILS PAST
THEIR HEADS

HAVING SURVIVED THIS ADVENTURE MR GOLDBERG SETS OFF TO SEE NEW YORK'S
SENIOR SENATOR DANIEL PATRICK MOYNIHAN AUTHOR OF A SCHOLARLY BUT WIDELY
INFLUENTIAL ARTICLE DEFINING DEVIANCY DOWN THAT EXPLAINS WITH
DEVASTATING CLARITY HOW SOCIETY CAME TO TOLERATE SO MUCH CRIMINAL AND
ABERRANT BEHAVIOR MINCES NO WORDS EITHER MR GOLDBERG FURTHER HAS FORMER
NEW YORK MAYOR EDWARD KOCH ON HAND WHO OBSERVES THAT THE MAJORITY OF THE
HOMELESS ON THE STREET ARE MENTALLY UNSTABLE ALCOHOLICS DRUG ADDICTS OR
ALL THREE AS THE FORMER MAYOR DOESN'T NEED TO POINT OUT ONE LEGACY OF THE
'60S WITH ITS CREDO OF UNFETTERED FREEDOM FOR ALL IS THE DISASTER WE
KNOW TODAY AS THE DEINSTITUTIONALIZATION OF THE MENTALLY ILL

IN ANOTHER SIMILARLY REMARKABLE PIECE WITH THE DECEPTIVELY BENIGN TITLE
BABY BOOMER MR GOLDBERG TAKES ON THE SUBJECT OF ILLEGITIMACY THE SOUND
BITES HERE ARE NOT YOUR EVERYDAY VARIETY NOT CERTAINLY THE SEGMENT WITH
JOURNALIST CHARLES KRAUTHAMMER WHO WHILE EXPLAINING THAT WELFARE
SUBSIDIZES ILLEGITIMACY NOTES THAT WHEN YOU SUBSIDIZE A PRODUCT WHETHER
WHEAT OR BABIES YOU GET MORE OF IT SOCIAL HISTORIAN CHARLES MURRAY WHO
HAS CALLED FOR AN END TO WELFARE MAKES HIS CASE AGAIN WITH NOTABLE PASSION

THERE ARE THOSE WHO DISAGREE WITH THIS SOLUTION WHO HAVE THEIR SAY HERE AS
WELL BUT NONE SO MEMORABLY AS ONE WELFARE MOTHER MR GOLDBERG INTERVIEWS
ON A STREET IN WEST PHILADELPHIA CHARMINGLY ENOUGH SHE ALLOWS SHE MAY HAVE
MORE THAN TWO THEN MORE THAN THREE POSSIBLY A NUMBER BETWEEN FOUR AND SIX
AND THEN FINALLY REVEALS THAT SHE HAS EIGHT CHILDREN NONE OF WHOSE FATHERS
SHE MARRIED THE TONE TURNS RATHER GRIMMER WHEN SHE GOES ON TO PROMISE MR
GOLDBERG THAT IF WELFARE ENDS WOMEN LIKE HERSELF WILL BE OUT IN THE STREETS
HURTING PEOPLE AND COMMITTING CRIMES

MR GOLDBERG HAS OBSERVED THAT HE DOESN'T WANT TO BE WONDERING 20 YEARS FROM
NOW WHAT HE WAS DOING WHILE AMERICAN LIFE WAS UNDERGOING ITS MOST RADICAL 
AND BLEAK TRANSFORMATION AND ASKING HIMSELF WHERE WAS I IT IS
ALREADY CLEAR THAT HE HAS EARNED THE RIGHT TO SAY THAT HE WAS OUT THERE
GETTING THE STORY AND DELIVERING IT 9402230046 940223 TEXAS JOURNAL 
 TRACKING TEXAS

THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR REMAINED FLAT AT 1115
IN THE LATEST WEEK AS BOTH INITIAL UNEMPLOYMENT CLAIMS AND TEXAS REFINERY
OUTPUT STAYED RELATIVELY UNCHANGED DURING THE WEEK ON A YEAROVERYEAR
BASIS THE GROWTH RATE OF THE INDEX FELL SLIGHTLY TO 29 FROM 3 OVER THE
PAST 52 WEEKS CONSUMER CONFIDENCE AND HELPWANTED ADVERTISING HAVE RISEN
SHARPLY 9402230045 940223 LEISURE & ARTS THE GALLERY GOLDING GETS
THE GREAT ONES  BY PAUL LEVY

LONDON THE MOST PRESSING ARTISTIC ISSUE OF OUR CENTURY CLAIMED THE ART
CRITIC OF THE LEAST VULGAR OF THE MURDOCH NEWSPAPERS IN A COVER STORY LAST
MONTH IS WHETHER MATISSE OR PICASSO WAS THE GREATER ARTIST IN THIS
ATTEMPT TO HYPE THE LATEST PICASSO EXHIBITION THREE WEEKS BEFORE IT EVEN
OPENED THE SUNDAY TIMES CRITIC WALDEMAR JANUSZCZAK NOT ONLY REDUCED THE
ACHIEVEMENTS OF MATISSE AND PICASSO TO A HEAVYWEIGHT BOXING MATCH HE ALSO
EXAMINED THE STATUS OF THEIR SECONDS I DO NOT THINK THAT FRANCOISE GILOT
IS THE WRITER HATED MOST FERVENTLY BY THE PICASSO ADMIRERS THAT
DISTINCTION PROBABLY RESTS WITH ARIANNA STASSINOPOULOS HUFFINGTON

SILLY AS SUCH BALLYHOO IS A POINT DOES EMERGE FROM IT PICASSO SCULPTOR
AND PAINTER AT THE TATE GALLERY UNTIL MAY 8 IS AN EVENT COMPARABLE WITH
THE GREAT MATISSE EXHIBITION SEEN IN NEW YORK AND PARIS UNLIKE IT THIS
SHOW WILL NOT TRAVEL AS SOME OF THE WORKS ARE TOO FRAGILE TO BE MOVED A
SECOND TIME AND THE DIPLOMACY REQUIRED TO GET THEM HERE WAS SO GREAT THAT
IT WAS JUST NOT POSSIBLE TO GET MOST OF THE LENDERS TO AGREE TO A SECOND
VENUE AS WELL

EIGHT ROOMS ARE BEING USED IN THE TATE SHOW WITH 160 WORKS 15 OF WHICH
HAVE NEVER BEFORE BEEN EXHIBITED HALF THE WORKS SHOWN HAVE NEVER BEEN SEEN
IN BRITAIN OBVIOUSLY THIS SHOW WILL BE A BOOST TO TOURISM HERE AS
ARTWORLD TYPES WILL COME BY THE PLANELOAD TO SEE IT BUT TO EXPERIENCE THE
FULL ACTION YOU ACTUALLY HAVE TO LIVE HERE AT LEAST FOR THE TWO WEEKS OF
BBC2'S PICASSO SEASON WITH ITS THREE FILMS BY PICASSO'S BIOGRAPHER JOHN
RICHARDSON PLUS YO PICASSO A RACY TV BIOGRAPHY STARRING BRIAN COX AS
THE ARTIST THE PICASSO FILES A LOOK AT THE ARTIST'S CONTROVERSIAL
POLITICS AND INEVITABLY A FILM TITLED PICASSO VERSUS MATISSE

THIS LAST FEATURED INTERVIEWS WITH THE MAN RESPONSIBLE FOR THE ENTIRE
JAMBOREE THE ART HISTORIAN JOHN GOLDING WHO COCURATED THE SHOW WITH HIS
FAVORITE PUPIL ELIZABETH COWLING IN A FURTHER CELEBRATION THE MAYOR
GALLERY ON CORK STREET ON FRIDAY OPENED A SHOW OF DR GOLDING'S OWN LARGE
COLORFUL ABSTRACT PAINTINGS AND A BOOK OF HIS ESSAYS VISIONS OF THE
MODERN WITH MUCH MATTER ABOUT BOTH PICASSO AND MATISSE HAS JUST BEEN
PUBLISHED BY THAMES & HUDSON AND THE UNIVERSITY OF CALIFORNIA PRESS

IT WAS AT CANNES IN THE SUMMER OF 1955 THAT DR GOLDING THEN 26 YEARS OLD
MANAGED NOT TO MEET PICASSO JACQUELINE ROQUE PICASSO'S FINAL MUSE AND
LATER HIS WIFE TOLD DR GOLDING WHO WAS THEN WRITING HIS THESIS ON CUBISM
THAT THE MASTER WAS JUST NOT FEELING WELL ENOUGH TO SEE HIM DR GOLDING HAD
WANTED TO ASK HIM SEVERAL QUESTIONS ABOUT THE RELATIONSHIP BETWEEN HIS
PAINTING AND HIS SCULPTURE AND FOR NEARLY 40 YEARS NOW HE HAS BEEN CARRYING
ON THE CONVERSATION THAT NEVER TOOK PLACE BY SCRUTINIZING THE WORKS OF ART
INSTEAD OF THE ARTIST

THIS AMAZING EXHIBITION IS THE CULMINATION OF THIS SILENT DIALOGUE AND IT
IS A TRIBUTE TO DR GOLDING'S CHARM AND SERIOUSNESS OF PURPOSE THAT SO MANY
PEOPLE ESPECIALLY PICASSO FAMILY MEMBERS WERE WILLING TO LEND TO THIS
SHOW IT BEGAN FOUR YEARS EARLIER WHEN DR GOLDING'S TERM AS A TRUSTEE OF
THE TATE WAS JUST COMING TO AN END AND THE DIRECTOR NICHOLAS SEROTA
APPROACHED HIM ABOUT MOUNTING A PICASSO SHOW THERE HAD IN FACT BEEN QUITE
A LARGE PICASSO SCULPTURE SHOW AT THE TATE IN 1967 PUT TOGETHER BY THE LATE
ROLAND PENROSE AND OF COURSE THERE HAVE BEEN SEVERAL BLOCKBUSTER PAINTING
SHOWS

THERE HAS NEVER BEFORE HOWEVER BEEN A SHOW LIKE THIS AS YOU WALK AROUND
IT YOU CAN'T HELP BUT SEE THAT SOME OF THE PAINTINGS AND DRAWINGS ARE
REALLY SCULPTURES WAITING TO BE REALIZED AND THAT SOME OF THE SCULPTURES
ARE REALLY THREEDIMENSIONAL PAINTINGS PICASSO DR GOLDING DOES NOT
HESITATE TO SAY WAS THE GREATEST SCULPTOR OF THE 20TH CENTURY AS WELL AS
ITS BEST PAINTER HIS CLAIM IS A LARGE ONE IF ONE SEARCHES FOR A TRULY
VALID PARALLEL FOR PICASSO'S ROLE AS A PAINTER AND A SCULPTOR DR GOLDING
WRITES IN HIS INTRODUCTION TO THE TATE CATALOG FOR ANOTHER ARTIST WHO
CHANGED BOTH THE VOCABULARY AND OUTWARD APPEARANCE OF BOTH ART FORMS ONE
MUST GO BACK MUCH FURTHER IN TIME AND TO A FIGURE BY WHOM PICASSO WAS
SECRETLY OBSESSED MICHELANGELO

THERE ARE SOME KEY WORKS IN THIS EXHIBITION THE PAINTING SEATED NUDE WITH
CROSSED LEGS 1906 IS THE SINGLE PAINTING IN WHICH YOU FEEL THE SCULPTURE
CRISIS COMING SAID DR GOLDING BUT I NEARLY DIDN'T GET IT I HAD TO
TRAVEL TO PRAGUE TO CONVINCE THE PEOPLE AT THE NARODNI GALERI THAT IT WAS
CRUCIAL TO THE SHOW DR GOLDING THEN WENT ON TO DO FOR ME EXACTLY WHAT
HE'D DONE FOR THE MUSEUM OFFICIALS IN PRAGUE AND THEN AGAIN IN THE CASE OF
HEAD AND SHOULDERS OF A WOMAN FERNANDE 1909 FOR THE ART INSTITUTE OF
CHICAGO HE LAID OUT THE 160 PHOTOGRAPHS OF THE WORKS HE PROPOSED TO
EXHIBIT THEY MADE THE CASE AS THE SHEER LOGIC OF THEIR ARRANGEMENT DID FOR
SEVERAL OTHER RELUCTANT LENDERS

WHY IS THIS EXHIBITION SO SPECIAL THERE ARE AS DR GOLDING HIMSELF POINTS
OUT PLENTY OF WORKS BY PICASSO IN ACCESSIBLE COLLECTIONS ALL OVER THE
WORLD FOR HE WAS THE MOST PROLIFIC ARTIST WHO EVER LIVED THE QUESTION IS
GETTING THE GREAT ONES AND I THINK WE HAVE SOME VERY GREAT ONES
9402230044 940223 LEISURE & ARTS BOOKSHELF LIFE AND DEATH WITH
FATHER  BY DAVID SACKS

SALESMAN DON HECHE WAS A DEVOTED HUSBAND A STRICT BUT LOVING FATHER OF
FOUR AND A PILLAR OF HIS BAPTIST CHURCH IN CLEVELAND AND LATER IN NEW
JERSEY HE ALSO LIVED A HIDDEN LIFE OF HOMOSEXUAL PROMISCUITY AND HE DIED
OF AIDS AT AGE 45 IN 1983 WHEN THE NEWLY IDENTIFIED DISEASE WAS STILL
MYSTERIOUS BUT ALREADY ASSOCIATED WITH HOMOSEXUAL MEN AND INTRAVENOUS
DRUGUSERS HECHE'S DOCTORS CALLED IT CANCER AND PNEUMONIA BUT HIS FAMILY
RECOGNIZED HIS SYMPTOMS IN NEWS REPORTS ABOUT AIDS

NOW HECHE'S ELDEST CHILD SUSAN BERGMAN WHO IS IN HER MID30S WITH FOUR
CHILDREN OF HER OWN HAS WRITTEN A MEMOIR OF HER OFTEN BIZARRE LIFE WITH
FATHER AVOIDING THE OPPORTUNITIES FOR SELFPITY AS WELL AS FOR WARMHEARTED
TOLERANCE AND FORGIVENESS ANONYMITY THE SECRET LIFE OF AN AMERICAN
FAMILY FARRAR STRAUS & GIROUX 198 PAGES 20 IS AN UNUSUAL TALE 
CANDID PSYCHOLOGICALLY REVEALING AND BRISTLING WITH INTELLIGENT ANGER

MS BERGMAN IS AN AWARDWINNING POET AND ESSAYIST IN THIS HER FIRST BOOK
SHE DRAWS ON INTERVIEWS WITH FAMILY AND FRIENDS AND ON HER OWN RECOLLECTIONS
AND JOURNAL NOTES WITH A MIX OF SYMPATHY AND DISDAIN SHE SHOWS HOW DON
HECHE WRECKED HIS FAMILY BY DEMENTEDLY PRETENDING THAT EVERYTHING WAS FINE

A BREEZY CHARMER WITH A TALENT FOR THE WAY THINGS SOUNDED AND THE WAY
THINGS LOOKED HECHE SEEMS TO HAVE BEEN GENUINELY CAUGHT BETWEEN TWO
LOYALTIES TO HIS AMERICAN DREAM OF UPPERMIDDLECLASS SECURITY AND TO HIS
SUBVERSIVE HIDDEN LIFE

RATHER THAN LOSE ONE OR THE OTHER HE BRIDGED THE GAP BY DECEIVING HIS AT
ONCE REFINED AND NAIVE WIFE WHEN SHE FINALLY ASKED HIM BEFORE HE DIED IF
HE HAD EVER HAD HOMOSEXUAL ENCOUNTERS HE DENIED IT

I CAN SYMPATHIZE WITH HIS LYING MS BERGMAN WRITES IT'S HARD TO TELL
THE TRUTH IN FRONT OF PEOPLE WHOSE LIVES WE THINK DEPEND ON ILLUSIONS
SIMILARLY HECHE SPENT YEARS TRYING TO IGNORE HIS STEADY LOSS OF INCOME DUE
TO BUSINESS FAILURES AND ILLNESS FINALLY LEAVING HIS WIFE AND CHILDREN
NEARLY IMPOVERISHED AND STUNNED BY THEIR OWN COMPLICITY IN HIS
ILLUSIONMAKING HE'D PRETENDED AND WE'D ALL PLAYED ALONG SHE REMEMBERS

THE CHILDREN DRIFTED BADLY AFTER HIS DEATH THE 18YEAROLD SON HIT A TREE
IN HIS CAR AND WAS KILLED THE 17YEAROLD DAUGHTER ABIGAIL FELL INTO
DEPRESSION AND DRUGS WHEN A FRIEND OF HECHE'S AFTERWARD CLAIMED IT'S NONE
OF YOUR DAMN BUSINESS WHAT YOUR FATHER DID IN THE BEDROOM THE AUTHOR
REPLIED UNDERSTATEDLY HIS BEHAVIOR HAD AN EFFECT ON ALL OUR LIVES DON'T
YOU THINK

ANONYMITY TREATS ITS SOMBER MATERIAL IN A CALM MEANDERING WAY CHAPTERS
IN MIXEDUP ORDER OPEN INTO DIFFERENT THEMES DAD'S LOVE OF MUSIC AND
THEATER TEENAGE SUSAN'S ATTRACTION TO OLDER MEN

THE BOOK VERY OCCASIONALLY USES TERMS SUCH AS QUEER AND BETRAYS A DISTASTE
FOR THE EXCESSES OF CERTAIN GAY MALE LIFESTYLES ALTHOUGH THIS MAY STRIKE
SOME CRITICS AS BACKWARD MS BERGMAN'S VIEWPOINT SEEMS GIVEN THE
CIRCUMSTANCES UNDERSTANDABLE AND HONESTLY EXPRESSED

CLIMBING UP FROM LOWERMIDDLECLASS ORIGINS AND AN ABUSIVE FATHER YOUNG
HECHE BECAME A 1950S INDIANA HIGHSCHOOL ATHLETE AND A SELFTAUGHT PIANIST
AND CHURCH ORGANIST HE MARRIED WELL WINNING THE DAUGHTER OF A PROMINENT
LOCAL FAMILY AFTER INEXPLICABLY DROPPING OUT OF MEDICAL SCHOOL HE HELD A
SERIES OF SALES JOBS BEFORE PURSUING A CAREER IN INTERIOR DESIGN

ODD ASPECTS OF THESE YEARS INCLUDED HECHE'S EXPENSIVE GIFTS FROM MEN AND A
MYSTERIOUS CASE OF HEPATITIS BUSINESS OFTEN TOOK HIM ALONE TO MANHATTAN
WHERE HE WOULD CRUISE FOR SEX ON SUNDAYS BACK HOME HE SERVED AS MUSIC
DIRECTOR OF THE FAMILY'S CHURCH

APPEARANCES COUNTED FOR MUCH IN THE PURITANICAL HECHE HOUSEHOLD IN ORDER
FOR GOD TO SEE YOUR INNER LIFE YOU HAD TO KEEP POLISHING THE SURFACE MS
BERGMAN RECALLS HECHE HABITUALLY ASSURED HIS CHILDREN OF THEIR MORAL
SUPERIORITY AND FINANCIAL SAFETY AS HIS WORLD COLLAPSED HIS HYPE TURNED TO
PURE FANTASY HE WAS SEARCHING FOR A 10 BILLION LOAN FOR MEXICO
COLLATERIZED BY OIL FOR WHICH HE HAD BEEN GUARANTEED ONE PERCENT OR 100
MILLION AS HIS FINDER'S FEE MS BERGMAN RECALLS IN ONE EERIE PASSAGE
HE HAD A BUYER ON THE HOOK FOR THE EMPIRE STATE BUILDING  AT A FOLDING
CARD TABLE IN THE DOWNSTAIRS FAMILY ROOM HE HAD SET UP A TELEPHONE AND A
MAKESHIFT FILE SYSTEM  HE MUST SORT THROUGH HIS SMALL SLIPS OF PAPER
FOR THE PHONE NUMBER WHERE IS IT

MS BERGMAN'S BOOK HAS FLAWS INCLUDING PATCHES OF OVERWRITING AND LAPSES IN
JOURNALISTIC INQUIRY WE NEVER LEARN IF HECHE HAD A LIFEINSURANCE POLICY OR
HOW HIS WIFE FACED THE POSSIBILITY OF HER OWN INFECTION SURELY THE MOST
FRIGHTENING ASPECT OF THE WHOLE STORY IN GENERAL MRS HECHE REMAINS A
PUZZLING FIGURE WHOSE MYOPIA TOWARD HER HUSBAND IS NOT CLEARLY EXPLAINED

STILL ANONYMITY OFFERS A HAUNTING PORTRAIT OF A DIVIDED MAN WHO
RECKLESSLY BROUGHT DISASTER ONTO HIS FAMILY AND HIMSELF WHAT UNIMAGINED
APPEAL MUST HIS LIFE AWAY FROM US HAVE OFFERED MS BERGMAN WONDERS HOW
ALONE HE MUST HAVE BEEN

MR SACKS IS A FREELANCE CRITIC 9402230043 940223 CORRECTIONS &
AMPLIFICATIONS

A PAGEONE ARTICLE ON GITANO GROUP INC IN FRIDAY'S EDITION INCORRECTLY
STATED THAT BONJOUR INTERNATIONAL HAD PLEADED GUILTY TO CUSTOMS FRAUD IN
1993 IN AN INDICTMENT BONJOUR WAS ACCUSED OF VIOLATING CUSTOMS LAWS BUT
THE COMPANY HASN'T ENTERED A PLEA IN THE CASE WHICH IS SCHEDULED TO GO TO
TRIAL IN FEDERAL DISTRICT COURT IN MANHATTAN IN OCTOBER

TYSON FOODS INC EXPECTS EARNINGS FOR ITS FISCAL SECOND QUARTER ENDING APRIL
2 TO BE ABOUT 28 CENTS A SHARE THE FIGURE WAS MISSTATED AS 22 CENTS A SHARE
IN AN ARTICLE YESTERDAY 9402230042 940223 KEY INTEREST RATES

ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL
RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 9 1994
CYIELDS ADJUSTED FOR CONSTANT MATURITY 9402230041 940223 INTERNATIONAL
 CANADA'S GOVERNMENT IN FIRST BUDGET RAISES TAXES EXPECTS BIG DEFICIT
AGAIN  BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF
THE WALL STREET JOURNAL

OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT IN ITS FIRST BUDGET
BOOSTED ANNUAL TAXES BY 14 BILLION CANADIAN DOLLARS US104 BILLION AND
FORECAST ANOTHER NEARRECORD DEFICIT

THE PROJECTED DEFICIT TOTALING C397 BILLION FOR THE 1995 FISCAL YEAR
STARTING APRIL 1 IS PROPORTIONATELY LARGER THAN THE US BUDGET DEFICIT
ADJUSTED FOR US BUDGET ACCOUNTING THE FORECAST CANADIAN DEFICIT AMOUNTS
TO 42 OF GROSS DOMESTIC PRODUCT COMPARED WITH A PROJECTED US
DEFICITTOGDP RATIO OF 35 FOR FISCAL 1995 GDP IS THE TOTAL VALUE OF A
COUNTRY'S OUTPUT OF GOODS AND SERVICES

THE GOVERNMENT'S DEFICIT IS EXPECTED TO PUSH THE PUBLIC DEBT TO A NET C551
BILLION IN THE COMING YEAR ADDING TO THE ALREADY HEAVY DEBTSERVICE BURDEN
ON TAXPAYERS

THE GOVERNMENT PREDICTED THAT 33 CENTS OF EVERY TAX DOLLAR WILL GO TO PAY
PUBLIC DEBT CHARGES IN THE 1995 FISCAL YEAR IN THE US 14 CENTS OF EVERY
US TAX DOLLAR IS FOR DEBT SERVICE

THE HEAVY DEBT BURDEN HAS SEVERELY LIMITED THE NEW GOVERNMENT'S SCOPE FOR
NEW INITIATIVES FINANCE MINISTER PAUL MARTIN REAFFIRMED THE LIBERAL PARTY'S
PLEDGE TO REDUCE THE BUDGET DEFICIT TO ABOUT C25 BILLION WITHIN THREE
YEARS IT IS NOW TIME FOR THE GOVERNMENT TO GET ITS FISCAL HOUSE IN ORDER
HE TOLD THE HOUSE OF COMMONS IN A SPEECH INTRODUCING THE BUDGET

THE GOVERNMENT HOWEVER FAILED TO MEET THE SPENDINGRESTRAINT DEMANDS OF
BUSINESS GROUPS AND OTHERS SHERRY COOPER CHIEF ECONOMIST AT TORONTOBASED
SECURITIES COMPANY BURNS FRY LTD SAID SHE WAS DISAPPOINTED THAT THE
LIBERAL GOVERNMENT WHICH TOOK OFFICE IN NOVEMBER DIDN'T TAKE ADVANTAGE OF
THE HONEYMOON PHASE OF ITS MANDATE TO TACKLE SPENDING MORE AGGRESSIVELY

THE GOVERNMENT ESTIMATED ITS BUDGET REVENUE WILL RISE 8 TO C1239 BILLION
IN THE COMING YEAR PARTLY ON THE STRENGTH OF ECONOMIC GROWTH WHICH IS
FORECAST AT 3

THE NEW TAX MEASURES INCLUDED A BUDGET PROVISION ELIMINATING A TAX EXEMPTION
FOR THE FIRST C25000 OF LIFEINSURANCE BENEFITS PROVIDED BY EMPLOYERS THE
MEASURE WILL MEAN AN ADDITIONAL COST OF AS MUCH AS C50 A YEAR IN TAXES FOR
AN EMPLOYEE THE GOVERNMENT ALSO ANNOUNCED THAT A C100000 CAPITALGAINS
EXEMPTION WOULD BE ELIMINATED FOR GAINS ACCRUING FROM TODAY ON

THE GOVERNMENT PREDICTED THAT ITS SPENDING WILL RISE 2 IN FISCAL 1995 TO
C1636 BILLION THE BUDGET INCLUDES NEW FUNDING FOR HOUSING UNEMPLOYED
FISHERMEN NATIVES AND WOMEN'S GROUPS

THE GOVERNMENT SAID SPENDING ON FOREIGN AID WILL BE CUT 2 IN THE COMING
YEAR AND THEN FROZEN DEFENSE SPENDING WILL BE CUT BY C19 BILLION OVER THE
NEXT THREE YEARS THIS COMES IN ADDITION TO SUBSTANTIAL DEFENSE CUTS
ANNOUNCED BY THE PREVIOUS PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT

THE GOVERNMENT SAID IT ALSO INTENDS TO NEGOTIATE A REVISED ROLE IN THE
INTERNATIONAL SPACESTATION PROGRAM TO SAVE C500 MILLION OVER THE NEXT 10
YEARS 9402230040 940223 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY 
 TV HIGHLIGHTS  BY LEE LESCAZE AND TIMOTHY K SMITH

HERE'S A MODEST PROPOSAL DROP ICE DANCING FROM THE OLYMPICS

TV COVERAGE OF THE LILLEHAMMER EVENT MADE IT APPARENT THAT NO ONE KNOWS
WHAT'S GOOD AND WHAT'S BAD ICE DANCING CBS'S VERNE LUNDQUIST AND TRACY
WILSON CAN'T EXPLAIN WE DUTIFULLY WATCHED ALL THE ICE DANCING FROM
LILLEHAMMER AND AS MS WILSON EXPLAINED IT TO US DURING OUR VIEWING ORDEAL
THE JUDGES LOOK FOR CLEVER FOOTWORK TEAMWORK CLOSE BODIES AND SENSUALITY

TO EXPLAIN WHY JUDGES FAVORED TWO RUSSIAN COUPLES OVER THE CLEARLY SUPERIOR
JAYNE TORVILL AND CHRISTOPHER DEAN SHE SAID THAT THE BRITISH PAIR MUST HAVE
VIOLATED THE RULES BY DOING TOO MANY ACROBATIC LIFTS

OTHERS REMARKED ON WHAT A SEXY OUTFIT OKSANA GRITSCHUK THE WINNING WOMAN
WORE SO IT WOULD SEEM THE WINNERS WON BY BEING SEXY THE LOSERS LOST BY
BEING ATHLETIC THAT SOUNDS LIKE A DEFINITION OF A NONSPORT LET'S LEAVE IT
TO THE ICE CAPADES

MARK PHILLIPS ON MONDAY NIGHT DID THE MOST ENTERTAINING OF THE ENDLESS TAPED
FEATURE STORIES WITH WHICH CBS IS FILLING ITS OLYMPIC BROADCAST TIME IN THE
1980S FIGURE SKATERS TOOK TO FEIGNING DEATH BY FALLING TO THE ICE MS
TORVILL AND MR DEAN STARTED IT ALL WITH THE FINALE OF THEIR BOLERO
ROUTINE FUNNY TAPES OF ICE DEATHS WERE SHOWN IN RAPID SUCCESSION A SOBER
FIGURESKATING OFFICIAL EXPLAINED THAT DEATH HAD BEEN BANNED FROM THE RINK
BECAUSE IF YOU'RE LYING ON THE ICE YOU'RE NOT ICE SKATING

BRIAN BOITANO WAS ASKED HOW HE FELT ABOUT THE PROHIBITION AND SAID IT
KILLS ME MR PHILLIPS POINTED OUT THAT FIGURESKATING AUTHORITIES HAD
OUTLAWED ONLY DEATH NOT GRIEVOUS BODILY HARM

CBS'S MONDAY NIGHT COVERAGE DREW 278 OF THE NATION'S 942 MILLION TV
HOMES ACCORDING TO AC NIELSEN CO FIGURES THAT WAS 28 HIGHER THAN THE
SECOND MONDAY OF THE 1992 GAMES IN ALBERTVILLE

THE SHELLSHOCKED COMPETITION NOW FACES WOMEN'S FIGURE SKATING AND SOME ARE
THROWING IN THE TOWEL ONE RIVAL NETWORK PROJECTS THAT CBS COULD DRAW 34 OF
THE TV HOMES TONIGHT MAKING COUNTERPROGRAMMING FUTILE

WITH THE OLYMPICS CONTINUING TO CLOBBER OTHER NETWORKS CBS IS THE
BATTLEGROUND OF THE MOMENT FOR COMMERCIAL ADVERTISERS AMERICAN EXPRESS HAS
AMBUSHED OLYMPIC SPONSOR VISA VIGOROUSLY IF YOU GO TO NORWAY YOU'LL NEED
A PASSPORT BUT YOU DON'T NEED A VISA BUT THE CORPORATE SNEERING CONTEST
HAS NO CLEAR VICTOR COCACOLA CO AND VF CORP ON THE OTHER HAND HAVE
SOME ADS THAT ARE WINNERS ESPECIALLY COKE'S SLOMO BOBSLEDDERS AND LEE'S
WOMEN'S AEROBIC SQUAD TRYING TO GET INTO BLUEJEANS THAT ARE TOO TIGHT IBM
HAS BOUGHT A LOT OF AIR TIME TO TELL THE WORLD HOW ITS COMPUTERS WERE USED
TO DESIGN THE US TEAM'S BOBSLEDS BUT IN THE TWOMAN COMPETITION
AMERICANS FINISHED 13TH AND 14TH WILL BRIAN SHIMER DRIVE THE US TO A GOLD
WITH IBM'S SLED SUNDAY OR WILL A RUNNER FALL OFF

STRANGE TO SAY SOME TV CRITICS LIKE THE NEW YORK TIMES'S STARSTRUCK
RICHARD SANDOMIR CONNIE CHUNG CALLS HIM RICHARD HE REPORTS ARE
WONDERING WHY GREG GUMBEL THE PRIMETIME HOST IS SO SELDOM SEEN AND SO
BLATHERFREE WE FIGURE THEY MUST WANT TO SEE HIM MAKE HIMSELF TEDIOUS AND
FOOLISH LIKE SOME OF HIS LESSSENSIBLE CBS COLLEAGUES

MR GUMBEL ISN'T FALLING FOR IT THOUGH HE REMAINS TOTHEPOINT AND
OCCASIONALLY AMUSING MONDAY NIGHT HE TOLD US THAT NORWEGIANS ARE RIBBING
THEIR SWEDISH NEIGHBORS AND RIVALS FOR SWEDEN'S RELATIVE LACK OF MEDALS BY
PASSING OUT MAPS IN LILLEHAMMER THAT SHOW SCANDINAVIA WITH SWEDEN MISSING
THEN HE QUICKLY GOT OFFCAMERA 9402230039 940223 CONSECO ENCOURAGES 
FIVE TOP EXECUTIVES TO EXERCISE OPTIONS  MOVE GENERATES 200
MILLION IN TAX DEDUCTIONS FOR USE IN OFFSETTING GAIN ON SALE  BY
TIMOTHY D SCHELLHARDT STAFF REPORTER OF THE WALL STREET JOURNAL

CONSECO INC IN A MOVE TO GENERATE ABOUT 200 MILLION IN TAX DEDUCTIONS
SAID IT INDUCED FIVE OF ITS TOP EXECUTIVES TO EXERCISE STOCK OPTIONS TO
PURCHASE ABOUT 36 MILLION COMMON SHARES OF THE FINANCIALSERVICES CONCERN
AS A RESULT OF THE TRANSACTION THE EXECUTIVES ARE ABOUT 100 MILLION RICHER
IN CONSECO SHARES

THE COMPANY BASED IN CARMEL IND ALSO SAID THAT AS AN INDUCEMENT TO
EXERCISE EARLY THEIR STOCK OPTIONS THE OFFICIALS ITS CHIEF EXECUTIVE
OFFICER AND FOUR EXECUTIVE VICE PRESIDENTS RECEIVED NEW OPTIONS TO BUY
18 MILLION SHARES AT CURRENT MARKET PRICES THAT FIGURE EQUALS THE NUMBER
OF SHARES WITHHELD TO PAY FEDERAL AND STATE TAXES OWED BY THE EXECUTIVES
BECAUSE OF THE DEAL THE COMPANY ACTUALLY ISSUED THE EXECUTIVES 18 MILLION
COMMON SHARES

CONSECO SAID IT PLANS TO USE THE 200 MILLION TAX DEDUCTION TO OFFSET
TAXABLE INCOME INCLUDING THE GAIN FROM THE RECENT SALE OF ITS 60 INTEREST
IN WESTERN NATIONAL CORP THE NEWLY PUBLIC PARENT OF WESTERN NATIONAL LIFE
INSURANCE CO THE 200 MILLION IS CONSIDERED EXECUTIVE COMPENSATION AND
THEREFORE IS DEDUCTIBLE BY THE COMPANY

A COMPANY SPOKESMAN SAID THE AVERAGE OPTION PRICE FOR THE 36 MILLION SHARES
WAS 370 A SHARE THE OPTIONS WERE GRANTED BETWEEN 1987 AND 1990 AND THE
370ASHARE OPTION PRICE REFLECTS TWO 2FOR1 STOCK SPLITS IN 1991 AND
1992

CONSECO SHARES CLOSED UNCHANGED AT 56 IN COMPOSITE NEW YORK STOCK EXCHANGE
TRADING

JUDY FISCHER PUBLISHER OF EXECUTIVE COMPENSATION REPORTS SAID THAT WHILE
THE SHARES EXERCISED REPRESENT A PRETTY GOOD AMOUNT OF MONEY THE
ARRANGEMENT ISN'T UNUSUAL IT ESPECIALLY WASN'T UNUSUAL IN 1993 TO HAVE
COMPANIES ACCELERATING THE VESTING OF OPTIONS FOR TAX PURPOSES SHE SAID

MS FISCHER ALSO SAID THAT THE WITHHOLDING OF SHARES TO PAY FOR THE
EXECUTIVES' TAX LIABILITIES IS A COMMON FEATURE OF EXECUTIVE STOCKOPTION
PLANS BUT SHE SAID THAT CONSECO'S GRANTING OF NEW OPTIONS TO THE EXECUTIVES
 SOCALLED RELOAD OPTIONS EQUAL TO THE NUMBER OF SHARES USED TO PAY
TAXES IS A NEW FEATURE THAT COMPANIES HAVE BEGUN TO PUT INTO STOCKOPTION
PLANS THE PAST FEW YEARS THAT RELOAD OPTION IS AN ANSWER TO CRITICS WHO
CONTEND THAT EXECUTIVES DON'T HAVE ENOUGH OWNERSHIP IN THEIR COMPANIES SHE
SAID THE NEW OPTIONS REMAIN EXERCISABLE UNTIL 1999 AND 2000 WHICH WAS THE
EXERCISE PERIOD AVAILABLE UNDER THE OLD OPTIONS

IN A RELATED MATTER CONSECO SAID IT REPURCHASED ABOUT 684000 COMMON SHARES
FROM THE MARITAL ESTATE OF MR HILBERT AND HIS EXWIFE AS PART OF THE
COMPANY'S TWO MILLION COMMONSHARE BUYBACK PROGRAM ANNOUNCED LAST NOVEMBER
THE COMPANY SAID INDEPENDENT DIRECTORS AUTHORIZED THE REPURCHASE TO PERMIT
THE SETTLEMENT OF THE HILBERTS' RECENT DIVORCE PROCEEDING WITHOUT HURTING
THE MARKET FOR THE STOCK CONSECO SAID THAT MR HILBERT AND THE OTHER FOUR
EXECUTIVES HAVE NO INTENTION TO SELL ANY SHARES IN THE FORESEEABLE FUTURE
9402230038 940223 THE MARSHALL PLAN HAD DIFFERENT GOALS IN A DIFFERENT
ERA  BY BARRY NEWMAN

THE MARSHALL PLAN HAD THREE THINGS TODAY'S WESTERN ATTEMPTS TO AID THE EAST
DON'T HAVE IT HAD A HEADQUARTERS THE TALLEYRAND MANSION IN PARIS IT HAD
13 BILLION AN ENORMOUS AMOUNT IN 1948 AND THE MARSHALL PLAN HAD A PLAN

THE EUROPEAN RECOVERY PROGRAM WENT BEYOND THE PHYSICAL REBUILDING OF NATIONS
DEVASTATED AND BANKRUPTED BY TWO WORLD WARS ITS ULTIMATE GOAL ONLY PARTLY
REVEALED BY SECRETARY OF STATE GEORGE C MARSHALL AT THE HARVARD
COMMENCEMENT OF 1947 WAS TO MELD WESTERN EUROPE INTO AN INTEGRATED TRADING
BLOC TO SERVE AS A BULWARK AGAINST THE SOVIET UNION AS SUCH IT WAS THE
MOST SUCCESSFUL AND SOME SAY MOST INVASIVE USE OF SHEER ECONOMIC
POWER IN AMERICAN HISTORY

AFTER 1989'S REVOLUTIONS AND THE 1991 SOVIET COUP ATTEMPT CALLS FOR A NEW
MARSHALL PLAN BRIEFLY TOOK UP SPACE ON THE OPINION PAGES ONE AUSTRIAN BANK
CALCULATED THAT INVESTING A COMPARABLE 1 OF THE GROSS NATIONAL PRODUCTS OF
WESTERN NATIONS OVER THREE YEARS WOULD COST 134 BILLION A YEAR FOR EASTERN
EUROPE AND 230 BILLION FOR THE FORMER SOVIET UNION GERMANY HAS SENT
SIMILARLY HUGE SUMS TO ITS OWN EXCOMMUNIST EAST BUT THE REST OF THE WEST
HAS BEEN IN NO MOOD TO MATCH IT

IT HAS ITS REASONS FIRST THE US AT THE CLOSE OF WORLD WAR II WAS
WALLOWING IN TRADE SURPLUSES TODAY THE WEST HAS MONEY TO LEND NOT TO
BURN AND IF IT HAD THE EAST WOULD HAVE MORE TROUBLE PUTTING IT TO USE THAN
FRANCE ITALY BRITAIN AND GERMANY EVER DID

THE MARSHALL PLAN DONATED DOLLARS TO THOSE CAPITALIST COUNTRIES WHICH SOLD
THEM TO THEIR SURVIVING TRADERS FOR LOCAL CURRENCY THE DOLLARS BOUGHT
IMPORTS MAINLY FROM THE US THE LOCAL CURRENCY BUILT FACTORIES DIKED THE
ZUYDER ZEE DRAINED SARDINIA'S SWAMPS AND CREATED JOBS IN THE TRADITION OF
THE NEW DEAL

AS LIVING STANDARDS IMPROVED WESTERN EUROPE'S WEAK CENTRIST GOVERNMENTS
FENDED OFF WHAT SEEMED AN IMMINENT TAKEOVER BY RADICAL LEFTISTS WITH STALIN
CLOSE BEHIND BY 1950 INDUSTRIAL PRODUCTION WAS 25 HIGHER THAN IN 1938
AND THE COMMUNIST THREAT HAD EBBED

THE EAST TODAY NEEDS CAPITAL JUST AS BADLY IT ALSO NEEDS THE LAWS
INSTITUTIONS AND EXPERTISE TO SPEND IT WELL A PLAN TO PROVIDE ALL THAT
WOULD COST AS MUCH AND DEMAND MORE MENTAL EXERCISE THAN MR MARSHALL'S

THE WEST MIGHT HAVE SET ITS MIND TO DEVISING ONE HAD IT KNOWN FOUR YEARS
AGO THAT HARDSHIP WOULD DEEPEN IN THE EAST AND THAT COMMUNISTS AND
NATIONALISTS WOULD THREATEN TO RISE AGAIN BUT THE COLD WAR WAS OVER BACK
THEN WITHOUT AN ENEMY TO FEAR THE WEST DIDN'T FEEL IMPELLED SEE RELATED
ARTICLE DISAPPEARING ACT WEST PLEDGED BILLIONS OF AID TO POLAND WHERE
DID IT ALL GO NOT MOSTLY TO THE POLES THE ADVISERS GOT SOME SOME
WAS NEVER SENT LEND TO BUSINESS TOO RISKY WSJ FEB 23 1994
9402230037 940223 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY  
RESULTS  BY TIMOTHY J CARROLL

SILVIO FAUNER EDGED BJORN DAHLIE IN A FURIOUS FINISH BOOSTING ITALY TO
VICTORY OVER NORWAY IN THE MEN'S 40KILOMETER CROSSCOUNTRY SKI RELAY AND
DENYING MR DAHLIE A RECORD SIXTH OLYMPIC GOLD MEDAL

WITH THE 04SECOND VICTORY ITALY GAINED ITS FIRST OLYMPIC RELAY GOLD IT
CAME AFTER SUCCESSIVE SECOND PLACES BEHIND NORWAY IN THE 1992 OLYMPICS AND
LAST YEAR'S WORLD NORDIC SKI CHAMPIONSHIPS

FINLAND WAS THIRD 1006 BEHIND THE WINNING TIME OF 1 HOUR 41 MINUTES
150 SECONDS

THE MIXEDSTYLE EVENT WAS WATCHED BY ANOTHER SELLOUT STADIUM CROWD OF 31000
AND TENS OF THOUSANDS OF FLAGWAVING FANS LINING THE TRAILS ORGANIZERS SAID
THE CROWD TOTALED A RECORD 105000

THE BIGGEST SATISFACTION WAS TO COME INTO THE STADIUM AND HEAR THAT THE
CROWD WAS SILENT WE WERE ABLE TO SHUT THEM UP SAID MARCO ALBARELLO
ITALY'S NO 2 RACER

HE SAID THE ITALIANS HAD WON AT THE TEMPLE OF CROSSCOUNTRY SKIING NORWAY
HAD WON THE THREE PREVIOUS MEN'S CROSSCOUNTRY RACES IN THESE GAMES

GERMANY LED BY LARGE HILL INDIVIDUAL CHAMPION JENS WEISSFLOG CAPTURED THE
TEAM EVENT WHEN JAPAN'S LAST JUMPER BLEW A HUGE LEAD BY LANDING SHORT

MR WEISSFLOG SOARED 1355 METERS ON HIS BETTER JUMP EQUALING THE HILL
RECORD

JAPAN'S LAST JUMPER MASAHIKO HARADA WHO WENT RIGHT AFTER MR WEISSFLOG
MANAGED ONLY 975 METERS AND JAPAN FELL SHORT OF WINNING ITS FIRST GOLD
MEDAL OF THE GAMES AND ITS FIRST SKIJUMPING GOLD SINCE 1972

AUSTRIA CLINCHED THE BRONZE AHEAD OF NORWAY

GERMANY'S WINNING POINT TOTAL WAS 9701 JAPAN COLLECTED 9569 AND AUSTRIA
HAD 9189

I WAS REALLY EXCITED BEFORE BOTH JUMPS I WAS TELLING MYSELF DON'T MESS
IT UP JUST NOW IN THE TEAM EVENT' SAID MR WEISSFLOG WHO WON THE
INDIVIDUAL 120METER HILL TITLE SUNDAY

THE TEAM COMPETITION IN WHICH FOUR JUMPERS FOR EACH TEAM HAVE TWO JUMPS
WAS CONTESTED FOR ONLY THE THIRD TIME IN THE OLYMPICS FINLAND WON IN 1988
AND 1992

SOUTH KOREA'S KIM KI HOON DEFENDED HIS GOLD MEDAL IN THE 1000METER
SHORTTRACK SPEED SKATING IN 1 MINUTE 3457 SECONDS CANADIAN DERRICK
CAMPBELL LED FROM THE START OF THE NINELAP FINAL BUT LOST HIS BALANCE
FIGHTING FOR THE LEAD WITH BRITAIN'S NICHOLAS GOOCH IN A TURN WITH THREE
LAPS REMAINING

MR CAMPBELL DIDN'T FINISH MR GOOCH FINISHED SECOND BUT WAS DISQUALIFIED
AFTER A REVIEW OF HIS BUMPING WITH MR CAMPBELL CHAE JI HOON OF SOUTH KOREA
FINISHED THIRD AND WAS AWARDED THE SILVER

WITH TWO OF THE FOUR FINALISTS OUT OF CONTENTION THE BRONZE WENT TO
CANADIAN MARC GAGNON EVEN THOUGH HE DIDN'T SKATE IN THE FINAL HE FELL IN
THE SEMIS BUT WON HIS CONSOLATION HEAT

IN THE WOMEN'S 3000METER RELAY RACE SOUTH KOREA SET AN OLYMPIC RECORD OF
4 MINUTES 2664 SECONDS

ABOUT 15 MINUTES AFTER THE RACE CHINA AFTER FINISHING SECOND WAS
DISQUALIFIED FOR INTERFERENCE THUS CANADA THE FIVETIME DEFENDING WORLD
CHAMPION WON THE SILVER IN 43204 THE US WON THE BRONZE DESPITE
FINISHING FOURTH IN THE FOURTEAM FINALS 9402230036 940223 WINTER
OLYMPICS 1994 LILLEHAMMER NORWAY  A FREELOADER'S GUIDE TO THE
GAMES

FOOD VEGETABLE SOUP SMOKED LAMB SEA TROUT TURKEY WHERE'S THE BEEF
UNDER THE DILL

AMBIANCE TALK OF ARTIFICIAL INSEMINATION DOWN ON THE FARM HOW NOW BROWN
COW

VIPS DAGROS GRANDDAUGHTER OF K SCHIE THE MOST FAMOUS NORWEGIAN BULL
IN AMERICA OUTSIDE LAKE WOBEGON

FOOD BULLWINKLE BUFFET SALMON SOUP MOOSE MEAT AND CLOUDBERRY PARFAIT

AMBIANCE TORCHLIT SLEIGH RIDE THROUGH THE OYER MOUNTAINS GLOGG NEEDS
A TOUCH MORE GIN

VIPS ANDERS EINSTAD CRUSTY SLEIGH DRIVER GIDDYUP

FOOD NO KEEPERS NO LUNCH PASS THE BAIT

AMBIANCE ICE FISHING ON LAKE MJOSA THE PERCH AREN'T BITING BUT WITH
THE BEAUTIFUL SCENERY WHO CARES

VIPS ANGLING WITH BILL JOE AND ED CBS MENONTHESTREET STARS

FOOD SALMONCHANTED EVENING ALSO SUSHI PENNE ALLA VODKA

AMBIANCE ANGULAR NOUVEAU VIKING WOOD FURNITURE NOUVEAU LIBERACE COCKTAIL
PIANIST

VIPS CZECH PRIME MINISTER VACLAV KLAUS IOC CZAR JUAN ANTONIO
SAMARANCH

FOOD GERMAN FRANKS GERMAN POTATO SALAD GERMAN PEA SOUP EIN BIER
BITTE

AMBIANCE PROMENADE OF TROLL ICE SCULPTURES LEADS TO WOODEN CHALET IN THE
SNOW NO TALK OF TONYA HERE SORRY NIKE

VIPS JAMAICAN BOBSLEDDERS SWISS BOBBER GUSTAV DARTH WEDER AND SWISS
TEAM MASSEUSE

FOOD ROAST BEAST WAS IT RUDOLPH BOILED POTATOES MASHED BROCCOLI

AMBIANCE TROLL PILLARS DIORAMAS OF FAMOUS TROLL TALES REMEMBER
FANDEN I NOFFA

VIPS FIGURE SKATERS PAUL WYLIE AND KRISTI YAMAGUCHI BIG DEAL YOU BET
 THEY KNOW TONYA AND NANCY

FOOD SAME CATERER AS SPORTS ILLUSTRATED LEAVE HOME WITHOUT IT

AMBIANCE QUAINT FOLK DANCERS SING FAMOUS NORWEGIAN TUNES REMEMBER
FINNJENTA AND SPRINGLEIK

VIPS HALLGRIM HOYE HAUG AGE 11 OLYMPIC MASCOT HAKON IN THE FLESH
9402230035 940223 PUBLISHING DEATH CONQUERS BESTSELLER LISTS AS
BOOMERS AGE  BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL

WITH ON DEATH AND DYING 25 YEARS AGO ELISABETH KUBLERROSS MAY HAVE
WRITTEN THE FIRST BESTSELLER ABOUT DEATH BUT SHE CERTAINLY DIDN'T WRITE THE
LAST

SHERWIN B NULAND AUTHOR OF HOW WE DIE WHICH WAS PUBLISHED THIS MONTH
HAS SEVERAL THEORIES ABOUT WHY THE TOPIC HAS BECOME SO POPULAR I THINK
WE'RE EXPLORING THE LAST GREAT UNKNOWN HE SAYS STARTING IN THE '60S WE
EXPLORED OUR SEXUALITY IN GREAT DEPTH AND DEATH LIKE SEX IS SOMETHING
WE'VE SECRETLY WANTED TO KNOW A LOT ABOUT

HE FINDS THE MOST RECEPTIVE READERS OF HIS BOOK TO BE BABY BOOMERS THEY
ARE SEEING THEIR PARENTS DIE DR NULAND SAYS AND THEY WANT A BOOK LIKE
THIS TO HELP THEM DEAL PROPERLY WITH THAT

MAUREEN GOLDEN BARNES & NOBLE'S VICE PRESIDENT OF MERCHANDISING THINKS
BABY BOOMERS ARE CONCERNED WITH THEIR OWN DEATHS AS WELL AND ARE LOOKING
FOR COMFORT AND UNDERSTANDING AS PEOPLE NOW MIDDLEAGED GET CLOSER TO THAT
REALITY THEMSELVES  I EXPECT THIS CATEGORY TO GET EVEN STRONGER SHE
SAYS

THERE ARE SCORES MORE DEATHRELATED BOOKS COMING AND SOME NEW RELEASES ARE
ALREADY ENJOYING STARTLING SUCCESS HOW WE DIE DR NULAND'S DESCRIPTION
OF DEATH FROM COMMON CAUSES IS APPEARING ON REGIONAL BESTSELLER LISTS
DESPITE GRAPHIC WRITING THAT ONE REVIEWER CALLED ELOQUENT BUT ALMOST
SADISTIC IN ITS CANDOR

THE FASTESTGROWING SEGMENT OF THE DEATH MARKET BOOKSELLERS SAY IS NEW
AGE TITLES LIKE EMBRACED BY THE LIGHT WHICH ARE NOT SCIENTIFIC BUT
SPIRITUAL IN THEIR FOCUS SARAH HUNT A BUYER FOR BARNES & NOBLE'S
SUPERSTORES SAYS WE PROBABLY CARRY ABOUT THE SAME NUMBER OF DEATH TITLES
IN THE PSYCHOLOGY SECTION AS WE DID FIVE YEARS AGO BUT WE HAVE SIX TIMES AS
MANY IN THE NEW AGE DEPARTMENT AMONG THE RECENT FAVORITES THE TIBETAN
BOOK OF LIVING AND DYING A 1992 BOOK ABOUT AN ANCIENT BUDDHIST PHILOSOPHY
OF DEATH

BERTELSMANN AG'S DOUBLEDAY HAS JUST PUBLISHED A NECESSARY END A BOOK IN
WHICH AUTHOR NICK TAYLOR RECOUNTS THE END OF HIS PARENTS' LIVES THE BOOK IS
ILLUSTRATED WITH WOODCUTS BY MR TAYLOR'S FATHER AND RANDOM HOUSE'S VILLARD
IS ABOUT TO PUBLISH SAVED BY THE LIGHT WRITTEN BY A MAN WHO CLAIMS TO
HAVE HAD NOT ONE BUT TWO NEARDEATH EXPERIENCES

THE FIELD HAS GOTTEN SO LARGE THAT THERE'S EVEN ROOM FOR SLEEPER HITS LIKE
FINAL GIFTS IN WHICH TWO HOSPICE NURSES RECOUNT WHAT PEOPLE SAY AND DO
JUST BEFORE THEY DIE DENVER'S TATTERED COVER BOOKSTORE SELLS 20 COPIES OF
FINAL GIFTS MONTHLY

EMBRACED BY THE LIGHT DEFIES VIRTUALLY EVERY PRECEPT OF MODERN PUBLISHING
MS EADIE HAD NEVER WRITTEN A BOOK BEFORE AND GOLD LEAF PRESS HAD NEVER
PUBLISHED ONE AND WHILE PUBLISHERS SAY A BOOK HAS LITTLE CHANCE OF
BECOMING A BESTSELLER IF IT DOESN'T BECOME POPULAR QUICKLY THIS BOOK CAME
OUT IN 1992 LAST SUMMER THE BANTAM BOOKS DIVISION OF BERTELSMANN AG PAID
15 MILLION FOR THE PAPERBACK RIGHTS IN A HEATED AUCTION THE PAPERBACK IS
DUE OUT NEXT FALL

BOOKSELLERS SAY THEY'VE NEVER SEEN ANYTHING QUITE LIKE THE CURRENT BOOM 
AND THEY EXPECT IT TO CONTINUE I THINK BETTY EADIE'S SUCCESS HAS PUT THE
TOPIC ON THE FRONT BURNER MORE THAN EVER BEFORE SAYS JOEL FOTINAS BUYER
OF RELIGION AND PHILOSOPHY BOOKS FOR DENVER'S TATTERED COVER BOOKSTORE

SUCH GROUPS AS THE HEMLOCK SOCIETY AND CHOICE IN DYING HAVE ALSO BROUGHT
DEATH INTO THE PUBLIC EYE WITH TOMES ABOUT TAKING CONTROL OF DEATH THROUGH
THINGS LIKE LIVING WILLS AND EVEN SUICIDE INDEED ONE REASON FOR THE LATEST
FLOOD OF DEATH BOOKS IS THE AMAZING SUCCESS IN 1991 OF FINAL EXIT DEREK
HUMPHRY'S PRECISE PRESCRIPTION FOR SELFDELIVERANCE BY PRESCRIPTION DRUGS
THE BOOK HAS SOLD MORE THAN 450000 COPIES

ALSO CONTINUING TO PROLIFERATE ARE BOOKS ABOUT NEARDEATH EXPERIENCES A
TOPIC THAT FIRST BECAME POPULAR WITH THE 1975 PUBLICATION OF LIFE AFTER
LIFE BY RAYMOND MOODY BASED ON ABOUT 100 INDIVIDUAL ACCOUNTS OF PEOPLE
RESUSCITATED FROM NEARDEATH STATES THE BOOK HAS SOLD MILLIONS OF COPIES AND
SPAWNED DOZENS OF IMITATIONS

PREDICTING WHAT WILL SELL IN THE DEATH GENRE ISN'T ALWAYS EASY BOOKSELLERS
SAY MS EADIE'S EMBRACED FINALLY ROARED UP BESTSELLER LISTS LAST FALL
AFTER THE AUTHOR APPEARED ON OPRAH WINFREY'S TALK SHOW THE BOOK WORLD'S
MOST COVETED SHOWCASE AND YET AN APPEARANCE ON OPRAH BY DR MOODY DIDN'T DO
MUCH FOR HIS MOST RECENT TITLE REUNIONS VISIONARY ENCOUNTERS WITH
DEPARTED LOVED ONES

OPRAH USUALLY CREATES AN INCREDIBLE POP IN SALES SAYS MS GOLDEN OF
BARNES & NOBLE BUT I THINK IN THIS CASE THE AUDIENCE JUST DIDN'T BELIEVE
WHAT HE WAS SAYING ABOUT CONTACTING DEAD PEOPLE THE PUBLISHER OF
REUNIONS VILLARD SAID IT ISN'T DISAPPOINTED IN THE BOOK WHILE FEWER
THAN 100000 COPIES ARE IN PRINT A SPOKESMAN SAID WE EXPECT IT TO SELL
FOR YEARS MS EADIE BOOKSELLERS SAY CAME ACROSS AS SINCERE AND
DOWNTOEARTH IN HER MANY TELEVISION APPEARANCES ALSO HER DESCRIPTION OF
DEATH AS SPIRITUAL AND JOYFUL REINFORCES MANY PEOPLE'S FANTASIES

AND PUBLISHERS INSPIRED BY THE SUCCESS OF EMBRACED ARE HOPING TALK SHOWS
WILL MAKE BESTSELLERS OF THEIR NEW TITLES VILLARD FOR ONE IS SURE IT HAS
A WINNER IN SAVED BY THE LIGHT DUE OUT NEXT MONTH BY DANNION BRINKLEY
THE MAN WHO CLAIMS TO HAVE DIED TWICE THE FIRST TIME HE WAS STRUCK BY
LIGHTNING AND RETURNED FROM DEATH INCREDIBLY PSYCHIC SAYS HIS ENTHUSIASTIC
PUBLISHER DIANE REVERAND THIS GUY IS SO PSYCHIC HE CAN CALL ME UP AND
READ THE CORRESPONDENCE ON MY DESK HE'S GOING TO BE INCREDIBLE ON TV
9402230034 940222 CLOSED END FUNDS

FRIDAY FEBRUARY 18 1994 PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS
CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH
TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE
THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE
EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O
NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE
THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY
NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE
AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE
FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS
FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME
DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR
AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV
IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF
THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF
WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V
NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN
CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES
EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST
N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE
9402230033 940223 ENTERPRISE A CONSULTING BUSINESS THRIVES BY HIRING
MOTHERS PARTTIME  BY BARBARA MARSH STAFF REPORTER OF THE WALL
STREET JOURNAL

CHICAGO THE WOMAN IS A REAL PRO BUT SHE HAS CHILDREN AND CAN ONLY WORK
PARTTIME TO MANY EMPLOYERS SHE'S THE WORKER FROM HELL

MARGARET JOHNSSON BUILT A BUSINESS AROUND HER

ALL BUT ONE OF THE WORKERS MS JOHNSSON HIRES TO DO CONSULTING WORK ARE
WOMEN WHO JUGGLE MOTHERHOOD AND CAREERS BY WORKING PARTTIME A FORMER
CORPORATE MANAGER MS JOHNSSON STARTED J & A CORPORATE FINANCIAL SOLUTIONS
THREE YEARS AGO BY TAPPING INTO TWO WORKPLACE TRENDS THE INCREASING NUMBER
OF CORPORATIONS SEEKING OUTSIDE HELP WITH HIGHLEVEL PROJECTS AND THE
GROWING RANKS OF PROFESSIONAL WOMEN LOOKING FOR FLEXIBLE PARTTIME WORK

YOU HAVE A LOT MORE HIGHLY QUALIFIED WOMEN IN THE WORK FORCE WHO ARE
LOOKING FOR A BALANCE BETWEEN FAMILY AND WORK IT WOULD BE A MISTAKE NOT TO
TAP THESE RESOURCES SAYS BRYAN DELOATCH A FINANCIAL MANAGER OF A PHILIP
MORRIS COS UNIT THAT HAS RETAINED MS JOHNSSON'S COMPANY INDEED OTHER
EMPLOYERS ARE ALSO TRYING TO DO EXACTLY THAT BUT MS JOHNSSON'S APPROACH IS
FAR MORE FLEXIBLE THAN MOST

THE ECONOMICS OF THE OPERATION MAKE J & A A FORMIDABLE COMPETITOR FOR LARGER
COMPANIES MS JOHNSSON PAYS HER CONSULTANTS 30 TO 50 AN HOUR WHICH
ALLOWS HER TO ATTRACT HIGHLY QUALIFIED CANDIDATES ALL SEVEN OF HER CURRENT
CONSULTANTS HAVE AT LEAST 10 YEARS OF WORK EXPERIENCE ALL ARE CERTIFIED
PUBLIC ACCOUNTANTS AND MOST HAVE A MASTER'S DEGREE IN BUSINESS
ADMINISTRATION SIX ARE MOTHERS THE SEVENTH IS A SINGLE MAN WHO TAKES A LOT
OF TIME OFF TO TRAVEL THERE'S ALSO AN OFFICE STAFF OF THREE SALESPEOPLE
AND AN OFFICE MANAGER

AMY SCHROEDER WHO LOST HER 88000AYEAR JOB AS A CORPORATE TREASURER
WHILE ON MATERNITY LEAVE SAYS SHE FEELS VERY FORTUNATE TO BE MAKING
NEARLY AS MUCH AN HOUR AS SHE DID BEFORE

WHILE HER CONSULTANTS ARE PAID AT A HIGH RATE MS JOHNSSON PAYS THEM ONLY
WHEN SHE HAS WORK FOR THEM TO DO SO SHE IS ABLE TO KEEP COSTS DOWN AND
BECAUSE ALL OF HER CONSULTANTS ARE INDEPENDENT CONTRACTORS WHO DO MUCH OF
THEIR WORK VIA HOME COMPUTER AND MODEM SHE DOESN'T HAVE TO PAY SOCIAL
SECURITY TAXES OR PROVIDE BENEFITS LIKE HEALTH INSURANCE MOST OF THE
CONSULTANTS DON'T NEED INSURANCE ANYWAY SINCE THEY ARE MARRIED TO MEN WITH
GOOD BENEFITS PACKAGES BUT THEY CAN BUY INTO A GROUP PLAN IF THEY NEED TO

AS A RESULT SHE SAYS SHE UNDERCUTS HER COMPETITION CHARGING ABOUT 100 AN
HOUR COMPARED WITH 250 FOR A MAJOR FULLTIME CONSULTING FIRM

MS JOHNSSON EXPECTS 1994 REVENUE TO DOUBLE TO 750000 FROM LAST YEAR AND
SHE PLANS TO START EXPANDING HER BUSINESS BEYOND CHICAGO TO OTHER CITIES
THIS YEAR

BUT HER UNUSUAL ARRANGEMENT CREATES UNUSUAL PROBLEMS GIL GORDON A MONMOUTH
JUNCTION NJ CONSULTANT ON FLEXIBLEWORK OPTIONS SAYS SHE MUST FIND WAYS
TO MANAGE BOTH THE UNPREDICTABLE NEEDS OF HER CLIENTS AND THE
UNCONTROLLABLE AVAILABILITY OF HER WORK FORCE FOR EXAMPLE HE SUGGESTS
THAT SHE INCREASE THE NUMBER OF HER CONSULTANTS A STEP THAT SHE SAYS SHE
PLANS TO TAKE THIS SPRING

SHE HAS ALSO SET UP A SYSTEM TO AVOID DELAYS AND DISRUPTIONS FOR EACH
PROJECT SHE ASSIGNS A PRIMARY CONSULTANT AND A BACKUP IF HOME OBLIGATIONS
FORCE THE PRIMARY CONSULTANT TO MISS WORK THE NO 2 TAKES OVER

THE CONTINGENCY PLANNING PAID OFF WHEN LAURA AVRIL THE PRIMARY CONSULTANT
ON A PROJECT FACED A FAMILY EMERGENCY THE NIGHT BEFORE A CRUCIAL CONFERENCE
CALL WITH A CLIENT MS AVRIL'S DOG A SHAR PEI HAD ATTACKED HER
16MONTHOLD SON LEAVING HEAD GASHES THAT REQUIRED 17 STITCHES AFTER
SPENDING ALL NIGHT IN AN EMERGENCY ROOM MS AVRIL CALLED TO TELL MS
JOHNSSON SHE WAS TOO UPSET TO HANDLE THE CONFERENCE CALL

MS JOHNSSON WHO IN THIS CASE WAS THE BACKUP HERSELF CALLED THE CLIENT
READY TO TAKE OVER BUT HE AGREED TO POSTPONE THE CALL IN THE END MS
JOHNSSON SAYS THE CLIENT WAS SO IMPRESSED WITH HER SYSTEM THAT HE DECIDED
TO EXPAND HIS PROJECT

IN TALKING WITH PROSPECTIVE CLIENTS MS JOHNSSON STRESSES HER CONSULTANTS'
PROFESSIONALISM BEFORE SPELLING OUT THEIR FLEXIBLE WORKING ARRANGEMENTS AND
EVEN THOUGH THEY AREN'T ALWAYS REACHABLE IMMEDIATELY SHE GUARANTEES THAT
THEY WILL RETURN CALLS WITHIN TWO HOURS

SHE ALSO INSISTS THAT HER CONSULTANTS MAINTAIN A PROFESSIONAL TONE IN THEIR
DEALINGS WITH CLIENTS THEY TAKE BUSINESS CALLS AT HOME THROUGH MS
JOHNSSON'S SWITCHBOARD THEY ALSO AVOID TAKING BREAKS WHILE AT A CLIENT'S
OFFICE AND LEAVE THE KIDS AT HOME

SCHEDULING REMAINS MS JOHNSSON'S TRICKIEST CHALLENGE BUT SHE THINKS SHE
HAS FOUND A SOLUTION EVERY ONE OF THE CONSULTANTS TELLS US THEIR DAYCARE
SCHEDULE AND WHAT DAYS OR HOURS THEY CAN'T WORK RATHER THAN DAYS THEY
CAN SHE SAYS ONE MOTHER OF THREE CAN'T WORK TUESDAYS OR THURSDAYS BECAUSE
SHE ATTENDS AN EARLY INTERVENTION PROGRAM FOR HER DOWN SYNDROME INFANT
ANOTHER WITH SCHOOLAGE CHILDREN CAN WORK MONDAY THROUGH FRIDAY BUT WANTS
TO BE HOME BY THREE

ONCE A MONTH MS JOHNSSON CALLS A STAFF MEETING FOR HER CONSULTANTS TO
ASSIGN NEW PROJECTS BASED ON THEIR SKILLS AND SCHEDULES MAKING THE MATCH
ISN'T ALWAYS EASY SHARON PORTER A PARK RIDGE ILL MOTHER FOR EXAMPLE
WAS RECENTLY ASSIGNED TO A 50HOURAWEEK MONTHLONG PROJECT EVEN THOUGH
SHE WANTS TO WORK ONLY THREE DAYS A WEEK

I AM BASICALLY WORKING FIVE DAYS A WEEK ON THIS PROJECT WHICH I DON'T
REALLY WANT TO DO MS PORTER SAYS SHE TOLERATES THE EXTRA WORK IN HOPES
OF LANDING A PROJECT WITH FEWER HOURS NEXT TIME BUT SHE IS MORE EXHAUSTED
THAN SHE WOULD LIKE SHE SAYS

ON THE FLIP SIDE KEEPING THE CONSULTANTS BUSY CAN ALSO TAKE SOME DOING
RITA GALLAGHER THE MOTHER OF TWO YOUNG CHILDREN WANTS TO WORK THREE TO
FIVE DAYS A WEEK LAST FALL MS JOHNSSON ASSIGNED HER TO A MONTHLONG
PROJECT TO SET UP A BUDGETING SYSTEM FOR A LOCAL CANDY MANUFACTURER IT WAS
SUPPOSED TO TAKE 140 HOURS TO COMPLETE MORE THAN ENOUGH TO MEET MS
GALLAGHER'S OBJECTIVES

BUT THE CLIENT SWITCHED SOME OF THE WORK INHOUSE AND MS GALLAGHER WAS
ABLE TO FINISH IT IN JUST 90 HOURS SHE SAYS TO MAKE MATTERS WORSE ONE JOB
THAT MS JOHNSSON THEN LINED UP FOR MS GALLAGHER WAS POSTPONED AND THE
OTHER WAS PUT ON HOLD AS A RESULT SHE WAS IDLE FOR THREE WEEKS

IF THIS GOES ON FOR A MONTH IT'LL BE A PROBLEM MS GALLAGHER SAID AT THE
TIME SHORTLY THEREAFTER MS JOHNSSON CAME THROUGH WITH MORE WORK
9402230032 940223 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

BEAZER HOMES USA INC INITIAL OFFERING OF SIX MILLION COMMON SHARES
PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO AND
SMITH BARNEY SHEARSON INC

EMMIS BROADCASTING CORP INITIAL OFFERING OF 34 MILLION CLASS A COMMON
SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY &
CO

FINISHMASTER INC INITIAL OFFERING OF 17 MILLION COMMON SHARES PRICED AT
1050 EACH THROUGH UNDERWRITERS LED BY PACIFIC GROWTH EQUITIES

EQUITY INNS INC INITIAL OFFERING OF 44 MILLION COMMON SHARES PRICED AT
10 EACH THROUGH UNDERWRITERS LED BY MORGAN KEEGAN & CO

FEDERAL NATIONAL MORTGAGE ASSOCIATION 961 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE
OFFERING SERIES 199452 IS BACKED BY THE AGENCY'S REMIC 199248 CLASS HA
AND REMIC 1992140 CLASS HG

UNION FEDERAL SAVINGS BANK 11996 MILLION OF AUTO ASSETBACKED
CERTIFICATES WAS PRICED AS 5075S AT 9996875 TO YIELD 5034 ACCORDING TO
MCM CORPORATEWATCH THE CERTIFICATES HAVE AN AVERAGE LIFE OF 19 YEARS AND
WERE PRICED TO YIELD 47 BASIS POINTS ABOVE THE TREASURY'S WHENISSUED
TWOYEAR NOTE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD
& POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITER PRUDENTIAL
SECURITIES INC THE ISSUE UFSB 1994A INCLUDES A 12 LETTER OF CREDIT
PROVIDED BY STATE STREET BANK

DAEWOO CORP SOUTH KOREA 75 MILLION OF CONVERTIBLE EUROBONDS DUE DEC
31 2004 AT ISSUE PRICE PAR VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD
INDICATED COUPON ZERO TO 025 CONVERTIBLE FROM ABOUT APRIL 7 TO NOV 30
2004 INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 20 TO 30 FINAL
TERMS FIXED TOMORROW CALLABLE FIRST FIVE YEARS AT PAR IF SHARE PRICE
EXCEEDS 120 OF CONVERSION PRICE THEREAFTER CALLABLE ANY TIME AT PAR FEES
25 LESS 04 POINT FOR LEAD MANAGER

EAGLE HOLDINGS CORP TAIWAN 55 MILLION SWISS FRANCS OF PRIVATELY PLACED
CONVERTIBLE 05 NOTES DUE MARCH 10 1999 AT PAR VIA CREDIT SUISSE
CONVERTIBLE FROM MARCH 10 TO MARCH 10 1999 AT 10 PREMIUM OVER TODAY'S
CLOSING SHARE PRICE WHEN TERMS FIXED

EAST JAPAN RAILWAY CO JAPAN 600 MILLION OF 6625 EUROBONDS DUE MARCH
16 2004 AT ISSUE AND REOFFER PRICE 99359 VIA MERRILL LYNCH INTERNATIONAL
LTD BONDS YIELD 672 A MARGIN OF 55 BASIS POINTS OVER COMPARABLE US
TREASURY FEES 035

JAPAN RADIO CO JAPAN 200 MILLION OF 1125 EUROBONDS WITH EQUITY
WARRANTS ATTACHED DUE MARCH 17 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE
PLC WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM
25 FROM MARCH 31 TO MARCH 10 1998 TERMS TO BE FIXED TUESDAY FEES 225
LESS 015 FOR LEAD MANAGER

JAPAN RADIO CO JAPAN 150 MILLION SWISS FRANCS OF PRIVATELY PLACED
NOTES DUE MARCH 17 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 025
COUPON AT PAR VIA CREDIT SUISSE NOTES EXERCISABLE FROM MARCH 31 TO MARCH
10 1998 TO PURCHASE COMPANY STOCK AT EXPECTED PREMIUM 25 TERMS TO BE
FIXED TUESDAY FEES 1625

SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 300 MILLION FRENCH FRANCS
OF ZEROCOUPON EURONOTES DUE MARCH 16 1995 AT ISSUE AND REOFFER PRICE 994
VIA SOCIETE GENERALE REDEMPTION AT 100 PLUS 9 TIMES NUMBER OF DAYS
SIXMONTH PARIS INTERBANK OFFERED RATE WITHIN RANGES OF 685 AND 585
FIRST WEEK DECLINING TO 5 AND 6 FINAL WEEK GUARANTOR SOCIETE GENERALE
FEES 05

TOKYO ELECTRON LTD JAPAN 11 BILLION FRENCH FRANCS OF 125 EUROBONDS
WITH EQUITY WARRANTS ATTACHED DUE MARCH 10 1998 AT ISSUE PRICE PAR VIA
BANK NOMURA FRANCE WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT
INDICATED PREMIUM 25 TERMS TO BE FIXED MONDAY TUESDAY CLOSING SHARE
PRICE 3180 YEN FEES 225 LESS 015 FOR LEAD MANAGER 9402230031 940223
WHAT'S NEWS  WORLDWIDE

THE US CHARGED A CIA OFFICER AND HIS WIFE WITH SPYING FOR THE RUSSIANS

A FORMER TOP CIA COUNTERINTELLIGENCE OFFICER ALDRICH AMES AND HIS WIFE
WERE ARRESTED AND CHARGED WITH SELLING NATIONAL SECURITY SECRETS TO THE
KREMLIN IT IS A VERY SERIOUS CASE PRESIDENT CLINTON SAID AMES 52 A
CIA EMPLOYEE SINCE 1962 NOT ONLY SPIED FOR THE SOVIET KGB FOR MORE THAN
FIVE YEARS ACCORDING TO COURT PAPERS BUT HE WAS ALSO AN AGENT OF THE KGB'S
SUCCESSOR AND MET WITH RUSSIAN CONTACTS AS RECENTLY AS NOVEMBER HE AND HIS
WIFE HAVE BEEN UNDER US GOVERNMENT SURVEILLANCE FOR TWO YEARS

THE COUPLE STANDS ACCUSED OF RECEIVING MORE THAN 15 MILLION IN PAYMENTS
FROM THE SOVIETS AND RUSSIANS FROM 1985 TO LATE 1993

FIVE SWEDISH PEACEKEEPERS WERE INJURED BY SHELLING NEAR THE EASTERN BOSNIAN
CITY OF TUZLA BUT THE UN DECIDED NOT TO ASK NATO FOR AIR SUPPORT IN
GERMANY US RUSSIAN AND EUROPEAN ENVOYS DECIDED THE CEASEFIRE MODEL FOR
SARAJEVO SHOULD BE EXTENDED TO OTHER TOWNS BUT RUSSIA BLOCKED CONSIDERATION
OF NEW NATO ULTIMATUMS ELSEWHERE

THE GOVERNMENT DECIDED TO JOIN GEORGIA IN DEFENDING A NEWLY REDRAWN
CONGRESSIONAL DISTRICT THAT OPPONENTS CONTEND WAS CREATED TO ENSURE ELECTION
OF A BLACK CANDIDATE THE GOVERNMENT ALSO IS SUPPORTING NEW DISTRICTS IN
NORTH CAROLINA AND TEXAS THAT WERE DRAWN TO ATTRACT MINORITY CANDIDATES

ARMED WHITE RIGHTISTS LAID CLAIM TO TWO SOUTH AFRICAN TOWNS DRAMATIZING
THEIR BID FOR A SEPARATE HOMELAND AND THEIR REJECTION OF THE COUNTRY'S FIRST
MULTIRACIAL ELECTIONS IN APRIL THE PROTESTERS DROVE IN CONVOYS THROUGH
BLOEMFONTEIN IN THE ORANGE FREE STATE AND NEWCASTLE IN NORTH NATAL TO
BOLSTER THEIR DEMAND FOR AN AFRIKANER HOMELAND

THE CHURCH OF ENGLAND CLEARED THE WAY FOR THE ORDINATION OF WOMEN AFTER
YEARS OF DEBATE THE CHURCH'S GOVERNING GENERAL SYNOD VOTED IN LONDON TO
APPROVE AN AMENDMENT IN ECCLESIASTICAL LAW TO PERMIT WOMEN TO BECOME
PRIESTS THE FIRST GROUP OF WOMEN IS SCHEDULED TO BE ORDAINED AT BRISTOL
CATHEDRAL ON MARCH 12

JUSTICE BLACKMUN SAID HE NO LONGER WOULD VOTE TO AFFIRM ANY DEATH SENTENCES
MAKING HIM THE ONLY CURRENT MEMBER OF THE SUPREME COURT TO TAKE THAT
POSITION BLACKMUN WHO HAS VOICED HIS GROWING CONCERN ABOUT CAPITAL
PUNISHMENT FOR SOME TIME SAID HE NOW CONSIDERS ALL DEATH PENALTY LAWS TO BE
UNCONSTITUTIONAL

RUSSIA FACES HUGE PROBLEMS IN DRAFTING THIS YEAR'S BUDGET AND WILL HAVE TO
RESORT TO MEASURES SUCH AS GOLD SALES TO MEET ITS COMMITMENTS CENTRAL BANK
CHIEF GERASHCHENKO SAID HE TOLD A BRIEFING IN VIENNA THAT THE RUSSIAN
GOVERNMENT WOULDN'T BE ABLE TO KEEP ITS 1994 DEFICIT BELOW A FIGURE OF 40
BILLION TO 45 BILLION

A LEADING VATICAN THEOLOGIAN DECLARED THAT WOMEN WHO INDUCE ABORTION BY
USING DRUGS WILL AUTOMATICALLY BE EXPELLED FROM THE ROMAN CATHOLIC CHURCH
SEPARATELY POPE JOHN PAUL II IN A 100PAGE LETTER ISSUED TO THE WORLD'S
FAMILIES SAID THAT SOCIETY CAN RECOGNIZE ONLY A MARRIAGE BETWEEN A MAN AND
A WOMAN

CANADIAN SCIENTISTS FOUND EVIDENCE OF CIGARETTE SMOKE IN FETAL HAIR THE
FIRST SOLID PROOF THAT EVEN THE OFFSPRING OF NONSMOKING MOTHERS CAN BE
AFFECTED BY PASSIVE CIGARETTE SMOKE THE TORONTO STUDY APPEARS IN TODAY'S
ISSUE OF THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION

SOLDIERS IN GABON DESTROYED A POPULAR OPPOSITION RADIO STATION AND PATROLLED
THE CAPITAL IN ARMORED CARS SETTING OFF RIOTING LOOTING AND THE SLAYING OF
A MAN ACCUSED OF BACKING GABON'S AUTOCRATIC LEADER OMAR BONGO MOST SHOPS
AND BUSINESSES IN CENTRAL LIBREVILLE WERE CLOSED BONGO HAS RULED THE WEST
AFRICAN NATION SINCE 1967

NORTH KOREA IS EXPECTED TO PERMIT INTERNATIONAL INSPECTORS TO EXAMINE SEVEN
DECLARED NUCLEAR SITES SECRETARY OF STATE CHRISTOPHER SAID HOWEVER A
SPOKESMAN FOR THE IAEA THE UN NUCLEAR SAFEGUARDS AGENCY SAID IT HASN'T
RECEIVED ANY INDICATION FROM THE PYONGYANG GOVERNMENT THAT VISAS HAD BEEN
ISSUED TO THE INSPECTORS

MEXICAN REBEL LEADERS MET WITH OFFICIALS OF SEVEN OPPOSITION PARTIES AND
RECEIVED SUPPORT FOR THEIR EFFORTS TO DEMOCRATIZE THE COUNTRY THROUGH
SWEEPING POLITICAL REFORMS THE MEETING CAME JUST BEFORE THE REBELS WERE DUE
TO RESUME TALKS WITH GOVERNMENT PEACE NEGOTIATORS 9402230030 940223
GREENSPAN HEWS TO PRICE RULE  BY THOMAS E NUGENT

YESTERDAY FED CHAIRMAN ALAN GREENSPAN GAVE THE WORLD RENEWED EVIDENCE THAT A
SUBTLE BUT NEAR REVOLUTIONARY CHANGE HAS TAKEN PLACE IN OUR ECONOMY AND AT
THE FEDERAL RESERVE MR GREENSPAN IN TESTIMONY BEFORE THE HOUSE BANKING
COMMITTEE SAID THAT TO PROMOTE SUSTAINABLE GROWTH HISTORY SUGGESTS THAT
REAL SHORTTERM RATES ARE MORE LIKELY TO HAVE TO RISE THAN FALL FROM HERE
THIS INDICATES HIS INTEREST IN CONTINUING USE OF THE PRICE RULE WITH THIS
DEVICE THE FED USES COMMODITY PRICES AND OTHER REAL ASSETS AS A GUIDE TO
THE FEDERALFUNDS RATE WHEN LOOSENING AND TIGHTENING THE PRICE RULE
CONTRASTS WITH THE MORE OLDFASHIONED QUANTITY RULE WHICH TARGETS THE MONEY
SUPPLY TO CONTROL INFLATION

THE PRICERULE THEORY IS IMPORTANT BECAUSE IT REFUTES THE TRADITIONAL
RELATIONSHIP BETWEEN INFLATION AND ECONOMIC ACTIVITY IT ALSO REFUTES THOSE
WHO BELIEVE IN THE QUANTITY RULE BUT NOT THE INFLATIONGROWTH TRADEOFF THE
PRICE RULE DOES MEAN THAT THE US CAN SIMULTANEOUSLY ENJOY HIGH GROWTH AND
LOW INFLATION AND LESS VOLATILITY OF PRICES

THROUGHOUT THE 1980S THE FED APPEARED TO APPLY THE PRICE RULE AND AS A
RESULT OUR ECONOMY BENEFITED BUT NOW ONE OF THE PRINCIPAL ADVOCATES OF THE
PRICE RULE GOVERNOR WAYNE ANGELL HAS LEFT SO CHAIRMAN GREENSPAN'S REMARKS
YESTERDAY ARE A FORTUNATE SIGNAL THAT THE ANGELLLESS FED MAY NOT REVERT TO
PRINTING MONEY TO SOLVE ECONOMIC PROBLEMS

TO UNDERSTAND THE DEGREE TO WHICH THE PRICE RULE HAS PLAYED A ROLE IN THE
ECONOMY IT HELPS TO RECOUNT A LITTLE HISTORY BACK IN 1982 THIS PAGE
PUBLISHED AN ARTICLE BY ARTHUR B LAFFER AND CHARLES KADLEC ENTITLED HAS
THE FED ALREADY PUT ITSELF ON A PRICE RULE THE ARTICLE WAS AMONG THE FIRST
TO NOTE THAT THE FEDERAL RESERVE APPEARED TO BE SETTING POLICY BY USING A
GUIDE BASED ON THE CHANGING PRICES OF THE DOW JONES SPOT COMMODITY INDEX AND
OTHER REAL ASSETS AT THE TIME THE FOCUS OF FINANCIAL MARKET PARTICIPANTS
NEVERTHELESS REMAINED THE DOW JONES NEWS TAPE THEY WATCHED IT THURSDAY
AFTERNOONS TO ANALYZE WHETHER THE MONEY SUPPLY WAS GROWING TOO FAST OR TOO
SLOWLY

AS PART OF THE PRICERULE THEORY MESSRS LAFFER AND KADLEC IDENTIFIED A
TARGET PRICE RANGE FOR THE DOW JONES SPOT INDEX THEY OBSERVED A BAND OF
119128 ACCORDING TO THIS THEORY IF PRICES REMAINED STABLE THEN A STABLE
MONETARY POLICY WAS APPROPRIATE BECAUSE THE FED WAS CREATING THE RIGHT
AMOUNT OF MONEY TO KEEP THE ECONOMY GROWING WITHOUT TOO MUCH INFLATION IF
THE INDEX FELL SUBSTANTIALLY BELOW THE LOWER BAND IT WAS TIME FOR THE FED
TO LOWER THE FEDERALFUNDS RATE AND LOOSEN IF THE INDEX WENT ABOVE THE
UPPER BAND FOR LONG IT WAS TIME TO TIGHTEN

THROUGHOUT THE 1980S EVIDENCE BUILT THAT SOME OF THE IMPORTANT MINDS AT THE
FED BELIEVED AND FOLLOWED THE PRICE RULE AND THAT A RELATIONSHIP INDEED
EXISTED AMONG THE DOW JONES SPOT COMMODITY INDEX THE FEDERALFUNDS RATE
AND LONGTERM INTEREST RATES IN THE 1980S AND EARLY 1990S THE RELATIONSHIP
COULD BE USED TO ANTICIPATE CHANGES IN FED POLICY AND INTEREST RATES THIS
EVIDENCE WAS A WONDERFUL THING SINCE IT SEEMED TO SHOW THAT LOW INTEREST
RATES LOW INFLATION AND STRONG ECONOMIC GROWTH CAN COEXIST IF MONETARY
POLICY IS GEARED TO PRICE STABILITY

THERE IS AMPLE EVIDENCE THAT THE FED FOLLOWED THE PRICE RULE SUCCESSFULLY IN
VERY RECENT YEARS AS WELL DURING MOST OF 1992 FOR EXAMPLE THE SPOT INDEX
REMAINED BELOW 119 THE LEVEL OF THE LOWER BAND AS A RESULT AN EASIER
MONETARY POLICY WAS IN ORDER AND THE FED LOWERED THE FEDERALFUNDS RATE THE
RATE DECLINED TO A LOW OF 3 BY DECEMBER 1992 FROM A HIGH OF 7 IN EARLY
1991 ONCE THE SPOT INDEX MOVED BACK UP INTO THE TARGET RANGE BY THE FOURTH
QUARTER OF 1992 THE FED STABILIZED FEDERAL FUNDS AT THE 3 LEVEL AND KEPT
THAT LEVEL THROUGH 1993 PRICES REMAINED STABLE THAT YEAR

THE DEMONSTRATION OF A COMMITMENT TO A PRICE RULE ENCOURAGED BOND MARKET
PARTICIPANTS TO BELIEVE THAT NEITHER INFLATION NOR DEFLATION WAS A THREAT
THE RESULT WAS GREAT CONFIDENCE IN THE FED A LOWERING OF INFLATIONARY
EXPECTATIONS AND A DROP IN LONGTERM INTEREST RATES

BY AUTUMN 1993 THE 30YEAR GOVERNMENT BOND YIELDED LESS THAN 58 WELL
BELOW RATE FORECASTS PUBLISHED IN THIS NEWSPAPER AT THE BEGINNING OF 1993
TRADITIONAL ECONOMIC FORECASTERS WERE STILL RELYING ON HISTORIC
RELATIONSHIPS BETWEEN ECONOMIC GROWTH AND LONGTERM INTEREST RATES TO
PREDICT RISING RATES IN 1993 EVEN THOSE FORECASTS THAT ACCURATELY PREDICTED
LONGTERM RATES FOR 1993 ALSO FORECAST A BELOW AVERAGE RATE OF GROWTH FOR
THE ECONOMY WHICH IS TO SAY THAT DESPITE THE EVIDENCE MANY OBSERVERS STILL
LINK EXPECTATIONS FOR LOW INTEREST RATES AND WEAK ECONOMIC ACTIVITY

YET IN 1993 LOW INTEREST RATES HAD A GREAT IMPACT ON ECONOMIC OUTPUT
SHORTLY AFTER REACHING THE RECORD LOW LONGTERM RATES OF OCTOBER 1993 THE
ECONOMY GREW RAPIDLY WITH INTERESTSENSITIVE SECTORS SUCH AS HOUSING AND
AUTO SALES PROVIDING THE IMPETUS A PRELIMINARY ACCOUNTING SHOWS THE ECONOMY
GREW AT AN ANNUALIZED RATE OF 59 DURING THE FOURTH QUARTER OF 1993 FOR
MUCH OF THE 20TH CENTURY THE PHILLIPS CURVE WAS VIEWED AS EVIDENCE THAT
INDUSTRIALIZED NATIONS MUST ALWAYS CHOOSE BETWEEN INFLATION AND
UNEMPLOYMENT YET IN 1993 IN THE FACE OF A STRONG ECONOMIC SURGE THE
IMPLICIT PRICE DEFLATOR A MEASURE OF INFLATION INCREASED BY ONLY 13 AT
AN ANNUAL RATE ON A YEAROVERYEAR BASIS IT ROSE ONLY 22 IN THE FOURTH
QUARTER THE SLOWEST RATE SINCE THE EARLY 1960S IS THIS THE EMERGENCE OF
THE INVERSE PHILLIPS CURVE

IN 1994 WE HAVE MORE EVIDENCE THAT THE FED IS COMMITTED TO THE PRICE RULE
AT THE END OF LAST MONTH MR GREENSPAN PUT THE KIBOSH ON THE TRADITIONAL
PHILLIPS CURVE TRADEOFF IN TESTIMONY BEFORE THE JOINT ECONOMIC COMMITTEE
HE COMMITTED TO PRICE STABILITY BY FEB 4 WHEN THE SPOT INDEX HAD RISEN
ABOVE THE 130 LEVEL THE FED ANNOUNCED A QUARTERPOINT INCREASE IN THE
TARGET FEDERALFUNDS RATE ONCE AGAIN THE FED'S ACTIONS COULD HAVE BEEN
PREDICTED BASED ON AN ANALYSIS OF THE PRICE RULE

HISTORICALLY FED TIGHTENING PERSISTS UNTIL THE SPOT INDEX FALLS BACK WITHIN
THE TARGET BAND THIS TIME ONE INCREASE MAY NOT BE ENOUGH TO CURB THE
UPSWING IN PRICES IN MID1987 THE INDEX ROSE ABOVE THE TARGET BAND THE
FED WAS QUICK TO RESPOND BUT CHANGED DIRECTION BECAUSE OF THE 1987 STOCK
MARKET CRASH BY SPRING 1988 THE SPOT INDEX APPROACHED THE 140 LEVEL AND
THE FED REACTED TAKING THE FEDERALFUNDS RATE TO 10 FROM 6 BY SPRING
1989 AS THE SPOT INDEX FELL BACK TO THE TOP OF THE UPPER BAND THE FED
LOWERED THE FEDERALFUNDS RATE TO 8 FROM 10

IF HISTORY IS A GUIDE THE CURRENT RISE IN LONGTERM INTEREST RATES WILL BE
MODEST AS A RESULT OF BOND MARKET PARTICIPANTS' FAITH IN THE PRICE RULE
INDEED LONGTERM RATES' UPWARD MOVE FROM OCTOBER 1993 MAY HAVE REFLECTED
BOND MARKET NERVOUSNESS ABOUT HOW COMMITTED THE FED WOULD CONTINUE TO BE TO
THE PRICE RULE ONCE ITS CHIEF ADVOCATE GOV ANGELL RESIGNED

NOW WE GET TO THE CURRENT TEST YESTERDAY THE STOCK AND BOND MARKETS SHOWED
LITTLE REACTION TO THE CHAIRMAN'S REMARKS BUT WILL THE FED STICK TO THE
PRICE RULE IF THE FED COMMITS TO PRICE STABILITY NOW LONGTERM INTEREST
RATES ARE BOUND TO GO LOWER EVEN IN THE FACE OF STRONGER ECONOMIC GROWTH
BOND PRICES SHOULD RISE AND YIELDS SHOULD FALL

IF THE FED DOES NOT PERSIST IN ITS EFFORTS TO MAINTAIN THE DOLLAR'S
PURCHASING POWER INTEREST RATES WILL SURGE YET NOW THE PRICE RULE IS SO
ESTABLISHED THAT ITS ABANDONMENT IS FORTUNATELY ALMOST IMPOSSIBLE

MR NUGENT VICE PRESIDENT OF SANTA BARBARA BANK AND TRUST WROTE A VERSION
OF THIS ARTICLE FOR THE NEWSLETTER OF INVESTMENT CONSULTANTS AB LAFFER
VA CANTO & ASSOCIATES 9402230029 940223 INTERNATIONAL SOME
POLITICAL BUSINESS LEADERS IN JAPAN SEEK TO AVOID TRADE WAR  BY
MICHAEL WILLIAMS AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET
JOURNAL

TOKYO A WEEK AFTER JAPAN MIFFED THE US BY SAYING NO TO NUMERICAL
TARGETS FOR REDUCING ITS GARGANTUAN TRADE SURPLUS SOME JAPANESE POLITICAL
AND BUSINESS LEADERS ARE CALLING FOR A COMPROMISE TO AVOID A TRADE WAR WITH
THE US

ICHIRO OZAWA A LEADING POWER BROKER IN PRIME MINISTER MORIHIRO HOSOKAWA'S
RULING COALITION GOVERNMENT TOLD FOREIGN REPORTERS YESTERDAY THAT HE
SUPPORTS SETTING NONBINDING IMPORT GOALS TO HELP BRING DOWN JAPAN'S SURPLUS
WITH THE US MEANWHILE THE CHAIRMAN OF ELECTRONICS MAKER CANON INC AND
OTHER BUSINESS LEADERS ARE SAYING THAT JAPAN SHOULD TAKE EVEN FIRMER STEPS
TO CUT ITS SURPLUSES

THESE CONCILIATORY GESTURES FROM TOKYO WEREN'T GREETED WITH ENTHUSIASM BY
SEN MAX BAUCUS D MONT WHO INTRODUCED LEGISLATION TO RENEW THE
SOCALLED SUPER 301 PROVISION THE LEGISLATION WHICH EXPIRED IN 1990
ALLOWS THE US TO UNILATERALLY SINGLE OUT COUNTRIES FOR RETALIATION AGAINST
ALLEGED UNFAIR TRADE PRACTICES IF NEGOTIATIONS DON'T RESULT IN A RESOLUTION
WITHIN 18 MONTHS THE US WOULD RETALIATE MOST OFTEN WITH TARIFFS

MR BAUCUS WHO MOVED TO MAKE THE LEGISLATION PERMANENT MADE NO SECRET
ABOUT WHICH COUNTRY SHOULD BE TARGETED NOTING SUPER 301 HAS ALWAYS BEEN
AIMED LARGELY AT JAPAN MR BAUCUS CHAIRMAN OF THE SENATE TRADE
SUBCOMMITTEE SAID HE MOVED TO INTRODUCE THE LEGISLATION AFTER THE CLINTON
ADMINISTRATION FAILED TO RENEW IT THROUGH EXECUTIVE ORDER AN OPTION US
OFFICIALS HAD BEEN WEIGHING SINCE TRADE NEGOTIATIONS BROKE DOWN WHEN JAPAN
REFUSED TO ACCEPT IMPORT TARGETS

WHILE THE COMMENTS OF JAPANESE LEADERS DIDN'T REPRESENT AN OFFICIAL
TURNAROUND IN GOVERNMENT POLICY THE SIGNALS COMING FROM TOKYO MAY AMOUNT TO
A SOFTENING OF JAPAN'S STIFF OPPOSITION TO NUMERICAL TARGETS FOR REDUCING
THE NATION'S TRADE SURPLUS WITH AMERICA BY JAPAN'S RECKONING THE BILATERAL
IMBALANCE TOPPED 50 BILLION IN 1993

MR OZAWA SAID HE WOULD SUPPORT DORYOKU MOKUHYO OR EFFORT GOALS TO
RESOLVE THE TRADE IMBALANCE SUCH GOALS COULD INCLUDE AIMING TO REDUCE
JAPAN'S SURPLUS TO A CERTAIN PERCENTAGE OF ITS GROSS DOMESTIC PRODUCT HE
SAID BUT HE WARNED THAT JAPAN SHOULD AGREE TO SUCH GOALS ONLY IF THEY
WEREN'T CONSIDERED A BINDING CONTRACT AND THE NATION WEREN'T SUBJECT TO
PUNITIVE SANCTIONS IF IT DIDN'T REACH THEM

IF IT WERE A TARGET TO ENCOURAGE BOTH SIDES TO MAKE SINCERE EFFORTS I
DON'T THINK THAT WOULD BE A BAD THING HE SAID THERE IS NOTHING WRONG
WITH THE GOVERNMENT'S MAKING EFFORTS FOR SUCH A TARGET BY EXPLAINING THINGS
TO OR ASKING FAVORS FROM PEOPLE IN THE PRIVATE SECTOR

MR OZAWA'S REMARKS CAME A DAY AFTER DEPUTY FOREIGN MINISTER KOICHIRO
MATSUURA TOLD A NEWS CONFERENCE THAT IT IS IMPORTANT TO ACHIEVE A
REDUCTION IN JAPAN'S OVERALL CURRENTACCOUNT SURPLUS TO 28 OF THE NATION'S
GDP IN THE YEAR THAT STARTS APRIL 1 DOWN FROM A PROJECTED 31 THIS FISCAL
YEAR ACCORDING TO A FOREIGN MINISTRY SPOKESMAN WHO CONFIRMED HIS COMMENT
MR MATSUURA SAID THE 28 FIGURE DOESN'T REPRESENT A JAPANESE COMMITMENT
SIMPLY A GOAL TOWARD WHICH THE NATION SHOULD WORK JAPANESE ECONOMIC
PLANNERS PROJECT THAT THE SURPLUS WILL FALL TO THE 28 LEVEL NEXT YEAR IF
CURRENT TRENDS CONTINUE THE SPOKESMAN SAID

US OFFICIALS IN TOKYO HAD NO COMMENT ON MR OZAWA'S REMARKS

THE IDEA OF PURSUING LIMITED IMPORT GOALS ALSO REPRESENTS A RETHINKING OF
THE PRAISE MR HOSOKAWA INITIALLY DREW FROM SOME QUARTERS FOR STANDING UP TO
WASHINGTON A NUMBER OF BUSINESS EXECUTIVES ARE PRESSING TOKYO TO COMPROMISE
WITH THE US IN ORDER TO AVOID A TRADE WAR AT A TIME OF A NAGGING ECONOMIC
SLUMP AND A NEW BOUT OF STRENGTH FROM THE YEN WHICH MAKES JAPANESE EXPORTS
MORE COSTLY

SOME BUSINESS EXECUTIVES HAVE LONG BEEN ADVOCATING TARGETS FOR JAPAN'S
OVERALL SURPLUS RYUZABURO KAKU CHAIRMAN OF CANON THINKS JAPAN SHOULD HAVE
COMMITTED ITSELF TO REDUCING ITS CURRENTACCOUNT SURPLUS TO 2 OF GDP IF
THE GOVERNMENT TRIED TO ENCOURAGE CONSTRUCTION OF INEXPENSIVE HOUSING
SEWAGE SYSTEMS AND SO FORTH HE SAID IT WOULD IMPROVE THE SURPLUS WHILE
MAKING THE JAPANESE PEOPLE HAPPY

MR KAKU OPPOSES NUMERICAL TARGETS IN SPECIFIC INDUSTRIAL SECTORS BUT OTHER
EXECUTIVES BACK THAT CONTROVERSIAL IDEA AS WELL TADAO SUZUKI PRESIDENT OF
ALCOHOLICBEVERAGE MAKER MERCIAN CORP SAID JAPAN NEEDS TO PRESENT
SPECIFIC IDEAS TO COPE WITH THE SITUATION SUCH AS ACCEPTING NUMERICAL
TARGETS FOR GOVERNMENT PROCUREMENT AND URGING INDUSTRIES TO SET VOLUNTARY
TARGETS FOR OPENING THE MARKET

THE IDEA OF COMMITTING TO FIRM TRADE TARGETS HOWEVER WILL MEET WITH FIERCE
OPPOSITION FROM MANY JAPANESE INDUSTRIES AND THE POWERFUL POLITICIANS AND
BUREAUCRATS WHO PROTECT THEIR INTERESTS AN OFFICIAL AT THE MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY BLASTED THE NOTION OF ACCEPTING IMPORT
GOALS ON THE CONDITION AMERICA AGREE NOT TO IMPOSE SANCTIONS

JUST AGREEING NOT TO IMPOSE SANCTIONS IS NOT SUFFICIENT SAID THE
OFFICIAL WHO SAID HE HADN'T SEEN MR OZAWA'S COMMENTS AND COULDN'T RESPOND
TO THEM DIRECTLY ANY TARGET SET BY THE GOVERNMENT AND FORCED ON THE
PRIVATE SECTOR IS STILL AN INTERVENTION BY THE GOVERNMENT THAT RUNS COUNTER
TO THE PHILOSOPHY OF THE CURRENT ADMINISTRATION HE SAID

IN THE CASE OF A USJAPAN SEMICONDUCTOR AGREEMENT JAPAN RECOGNIZED THE
EXPECTATION OF US INDUSTRY THAT FOREIGN COMPANIES WOULD OBTAIN A 20
SHARE OF THE JAPANESE SEMICONDUCTOR MARKET BY THE END OF 1992 BUT
EXPLICITLY STATED THE 20 FIGURE WOULDN'T BE A GUARANTEE THE US HOWEVER
LATER INSISTED THAT JAPAN HAD COMMITTED ITSELF TO THE 20 FIGURE AND
THREATENED SANCTIONS IF IT WASN'T ACHIEVED WE ARE STILL CONCERNED THAT ANY
NUMBERS WE ARE SUBJECTED TO CAN TAKE ON A LIFE OF THEIR OWN AS IN THE
SEMICONDUCTOR AGREEMENT THE MITI OFFICIAL SAID INSTEAD OF TARGETS TOKYO
SAYS IT INTENDS TO PROVIDE DETAILS EARLY NEXT MONTH ON A UNILATERAL
FOURPART MARKETOPENING PROGRAM

MANY JAPANESE POLITICIANS AND BUREAUCRATS ALSO RESIST THE IDEA OF TAKING
FURTHER MEASURES TO SPUR JAPAN'S ECONOMY AS A WAY OF INCREASING DEMAND FOR
IMPORTS THE JAPANESE PRESS RAN A STORY THIS WEEK THAT SAID JAPAN IS
CONSIDERING PROMISING WASHINGTON TO EXTEND THE ONEYEAR INCOMETAX CUT 
PROPOSED EARLIER THIS MONTH IN A STIMULUS PACKAGE IF THE ECONOMY DOESN'T
RECOVER BUT BOTH MR OZAWA AND FINANCE MINISTRY OFFICIALS FROWNED ON THE
NOTION

OUR AMMUNITION BOX IS EMPTY SAID A FINANCE MINISTRY OFFICIAL CLOSE TO THE
USJAPAN NEGOTIATIONS JAPAN HE SAID HAS DONE ALL IT CAN ON THE
FISCALPOLICY FRONT FOR THE FORESEEABLE FUTURE 9402230028 940223
MARKETING & MEDIA NABISCO TO BRING TOP COOKIE BRANDS TO BREAKFAST
LINE  BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL

PARSIPPANY NJ NABISCO BISCUIT CO IS BETTING THAT ITS BESTKNOWN
COOKIE BRANDS CAN TAKE A SPOT ON THE BREAKFAST MENU

THE KING OF THE COOKIE AND CRACKER AISLES UNVEILED FOUR PRODUCTS THAT IT
HOPES WILL MAKE INROADS IN THE LESSFAMILIAR BREAKFASTSNACK CATEGORY THREE
OF THE PRODUCTS ARE GRANOLA BARS GEARED TO KIDS AND BEARING THE NAMES OF
NABISCO'S BESTKNOWN COOKIES OREO CHIPS AHOY AND NUTTER BUTTER

FOR THE HEALTHCONSCIOUSADULT MARKET NABISCO INTRODUCED SNACKWELL'S CEREAL
BARS A FATFREE LINE BEARING THE SAME NAME AS NABISCO'S SUCCESSFUL COOKIE
LINE NABISCO ALSO ANNOUNCED THE RETURN OF TOASTETTES TOASTER TARTS TO
BECOME A VALUEPRICED LINE NABISCO A UNIT OF RJR NABISCO HOLDINGS CORP IN
NEW YORK SAID IT EXPECTS THE NATIONAL ROLLOUT TO BE COMPLETED BY THE END
OF THE YEAR

THE GRANOLA BARS WILL BE SOLD 12 TO A BOX WITH A SUGGESTED RETAIL PRICE OF
269 THE SNACKWELL BARS WHICH RESEMBLE NABISCO'S NEWTONS WILL BE SOLD
SIX TO A BOX WITH A SUGGESTED PRICE OF 219

ACCORDING TO JEFFREY COHEN BUSINESS DIRECTOR OF NEW BUSINESS FOR NABISCO
24 OF ALL SNACKING IS NOW DONE IN THE MORNING DOUBLE THE LEVELS IN 1983
WE SAW A REAL OPPORTUNITY TO LEVERAGE BRAND NAMES HE SAID

NABISCO'S EFFORT COMES AT A TIME WHEN THE BREAKFASTBAR AND GRANOLA
CATEGORIES ARE GROWING STRONGLY FUELED IN PART BY KELLOGG CO'S NUTRIGRAIN
CEREAL BARS SALES OF GRANOLA AND OTHER SNACK BARS GREW 12 TO 3847
MILLION IN THE YEAR ENDED SEPT 11 1993 ACCORDING TO NIELSEN MARKETING
RESEARCH

WHILE IT CONCEDES ITS OREO CHIPS AHOY AND NUTTER BUTTER GRANOLA BARS MIGHT
BE CONSIDERED INDULGENT NABISCO SAYS THAT THEY CONTAIN ONLY FOUR GRAMS OF
FAT AND 120 CALORIES WE FEEL WE'RE OFFERING AN APPROPRIATE BALANCE BETWEEN
VERY WHOLESOME TO TOO INDULGENT SAID MR COHEN WHO ADDED THAT THE
PRODUCTS WERE WELL ACCEPTED IN CONSUMER TESTING 9402230027 940223
COLUMBIA/HCA AND BEVERLY WEIGH ALLIANCE  OPERATOR OF NURSING
HOMES HOSPITAL CHAIN CONSIDER CERTAIN JOINT VENTURES  BY ROBERT
TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL

BEVERLY ENTERPRISES INC AND COLUMBIA/HCA HEALTHCARE CORP SAID THEY ARE
DISCUSSING JOINT VENTURES IN CERTAIN MARKETS IN A BID TO ATTRACT MORE
MANAGEDCARE BUSINESS FOR BOTH COMPANIES

AMID INDUSTRYWIDE PRESSURE TO CUT COSTS CONSOLIDATE OPERATIONS AND FORGE
THE SORT OF COMPREHENSIVE DELIVERY SYSTEMS BACKED BY THE CLINTON
ADMINISTRATION SUCH A MOVE WOULD MARK ONE OF THE FIRST MAJOR ALLIANCES
BETWEEN A LONGTERMCARE PROVIDER AND A FORPROFIT HOSPITAL CHAIN

STILL BOTH COMPANIES DENIED A REPORT IN USA TODAY YESTERDAY INDICATING THAT
THE DISCUSSIONS HAVE INVOLVED THE ACQUISITION BY COLUMBIA/HCA A LOUISVILLE
KYBASED HOSPITAL CONCERN OF ALL OR PART OF BEVERLY A FORT SMITH
ARKBASED OPERATOR OF NURSING HOMES WITH 1993 REVENUE OF 29 BILLION

TO MY KNOWLEDGE THERE HAVE BEEN NO DISCUSSIONS ABOUT MERGERS OR
ACQUISITIONS SAID JERRY MOORE BEVERLY'S EXECUTIVE VICE PRESIDENT FOR
MANAGED CARE AND A PARTICIPANT IN THE TALKS WHICH HE SAID HAVE OCCURRED
SPORADICALLY SINCE DECEMBER

OWNERSHIP ISSUES AREN'T BEING DISCUSSED A COLUMBIA/HCA SPOKESWOMAN ADDED

INSTEAD MR MOORE SAID THE COMPANIES HAVE DISCUSSED JOINTLY MARKETING THEIR
SERVICES IN CERTAIN CITIES WE HAVE TALKED ABOUT DOING SOME PILOTS AND
THAT'S THE EXTENT OF THE DISCUSSION HE SAID ADDING THAT THE COMPANIES
HAVEN'T TALKED ABOUT SPECIFIC MARKETS TIMETABLES OR DETAILED PLANS

BUT JUST THE RUMOR THAT ACQUISITIONMINDED COLUMBIA/HCA MIGHT BE SNIFFING
AROUND WAS ENOUGH TO TRIGGER A SEVENFOLD INCREASE IN TRADING OF BEVERLY
STOCK ON TUESDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON
TUESDAY BEVERLY SHARES CLOSED AT 14625 UP 625 CENTS A SHARE OR 45
SHARES OF COLUMBIA/HCA CLOSED AT 4275 UP 1625 OR 4

IN LESS THAN A YEAR COLUMBIA HAS GOBBLED UP GALEN HEALTHCARE INC AND
HCAHOSPITAL CORP OF AMERICA ITS LARGEST COMPETITORS AMONG FORPROFIT
HOSPITAL CHAINS TO FORM A SYSTEM WITH 190 HOSPITALS IN 26 STATES AND TWO
FOREIGN COUNTRIES AND ESTIMATED ANNUAL REVENUE OF 10 BILLION IN ITS CORE
MARKETS COLUMBIA/HCA ALSO HAS SNAPPED UP A HOST OF INDIVIDUAL OUTPATIENT
SURGERY CENTERS REHABILITATION HOSPITALS AND OTHER FACILITIES AS ITS SEEKS
TO OFFER ONESTOP SHOPPING FOR EMPLOYERS AND INSURERS IN SEARCH OF
LOWERCOST MANAGED CARE

BEVERLY HAS A NATIONWIDE NETWORK OF 758 LONGTERM CARE FACILITIES AND HEAVY
OVERLAP WITH THE COLUMBIA/HCA HOSPITAL SYSTEM IN LARGE STATES SUCH AS
FLORIDA TEXAS AND CALIFORNIA MOREOVER LIKE MANY OTHER LONGTERMCARE
PROVIDERS IT RECENTLY HAS MOVED TO UPGRADE MANY OF ITS FACILITIES TO
PROVIDE SUBACUTE SERVICES WHICH INVOLVE THE CARE OF PATIENTS WHO NO LONGER
NEED MOREEXPENSIVE HOSPITAL CARE BUT ARE TOO SICK TO GO HOME

STILL FEW INDUSTRY ANALYSTS EXPECT COLUMBIA/HCA TO MOVE FULLSCALE INTO THE
NURSINGHOME BUSINESS A LOWMARGIN INDUSTRY BESET BY REGULATORY AND LABOR
TROUBLES IN RECENT YEARS INSTEAD MOST ENVISION AN AGREEMENT SIMILAR TO ONE
ANNOUNCED LAST OCTOBER WITH DALLASBASED MEDICAL CARE AMERICA INC IN WHICH
COLUMBIA/HCA AND THE OPERATOR OF OUTPATIENT SURGERY CENTERS WILL JOINTLY OWN
FACILITIES IN SIX STATES AND JOINTLY NEGOTIATE CONTRACTS WITH INSURANCE
COMPANIES AND OTHER THIRDPARTY PAYERS OF MEDICAL BILLS

I WOULD SEE ALLIANCES EMERGING IN SOME MARKETS SAID MARGO VIGNOLA AN
INDUSTRY ANALYST AT SALOMON BROTHERS BUT BUYING BEVERLY NO COLUMBIA
DOESN'T NEED IT

SOME INDUSTRY OBSERVERS PREDICTED THAT AFTER SO MANY MAJOR ACQUISITIONS
COLUMBIA/HCA WILL CREATE COMMOTION ON WALL STREET WITH EVEN ITS MOST
TENTATIVE MOVES TO FORGE ALLIANCES THIS IS GOING TO HAPPEN A LOT SAID
TODD RICHTER A DEAN WITTER REYNOLDS ANALYST BECAUSE COLUMBIA IS TALKING
TO VIRTUALLY EVERY MAJOR HEALTHCARE PROVIDER IN THE UNITED STATES

FOR THE FOURTH QUARTER BEVERLY REPORTED NET INCOME OF 168 MILLION OR 17
CENTS A SHARE COMPARED WITH A NET LOSS OF 325 MILLION OR 44 CENTS A
SHARE A YEAR EARLIER AFTER CHARGES REVENUE ROSE 64 TO 7329 MILLION
FROM 689 MILLION

COLUMBIA/HCA WHICH HAS NOT YET REPORTED FOURTHQUARTER RESULTS HAD A
THIRDQUARTER NET LOSS AFTER CHARGES OF 115 MILLION OR 77 CENTS A SHARE
COMPARED WITH A YEAREARLIER NET LOSS OF 164 MILLION OR 117 A SHARE
REVENUE WAS UP 47 TO 124 BILLION FROM 118 BILLION 9402230026 940223
US IS INVESTIGATING HONDA'S ACURA NSX OVER EARLY TIRE WEAR

WASHINGTON FEDERAL SAFETY INVESTIGATORS HAVE OPENED AN INQUIRY INTO HONDA
MOTOR CO'S ACURA NSX SPORTS CARS AFTER RECEIVING EIGHT COMPLAINTS THAT
THEIR REAR TIRES WEAR OUT QUICKLY

SOME NSX OWNERS HAVE REPORTED THEIR TIRES WORE OUT AFTER LESS THAN 5000
MILES ACCORDING TO THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
REPLACEMENT TIRES AS WELL AS THE ORIGINAL TIRES MADE BY YOKOHAMA TIRE
CORP ALLEGEDLY WEAR DOWN QUICKLY THE SAFETY AGENCY SAID

AGENCY OFFICIALS WOULDN'T SPECULATE ON WHAT COULD CAUSE THE TIRES TO WEAR
OUT QUICKLY A NHTSA SPOKESMAN SAID NONE OF THE EIGHT COMPLAINTS CONCERNED
REPLACEMENT TIRES BUT MEMBERS OF AN NSX OWNERS CLUB REPORTED SIMILAR WEAR
PATTERNS ON REPLACEMENT TIRES THE SAFETY AGENCY SPOKESMAN SAID NO PROBLEMS
HAVE BEEN REPORTED WITH YOKOHAMA TIRES ON OTHER HIGHPERFORMANCE CARS

KELLY TEENOR A SPOKESWOMAN FOR YOKOHAMA TIRE SAID THE TIRES WERE DESIGNED
FOR HIGHPERFORMANCE CARS AND CONTINUE TO DELIVER WHAT THEY WERE DESIGNED
TO DELIVER INCLUDING QUICK STEERING RESPONSE AND HIGH TRACTION THE
COMPANY BASED IN FULLERTON CALIF IS A SUBSIDIARY OF TOKYOBASED YOKOHAMA
RUBBER CO LTD A SPOKESWOMAN FOR AMERICAN HONDA MOTOR CO WHICH
DISTRIBUTES THE ACURA NSX SAID WE THINK THEY'RE THE RIGHT TIRES FOR THE
VEHICLE SHE ADDED THAT PREMATURE WEAR MAY HAVE SOMETHING TO DO WITH THE
WAY PEOPLE DROVE THE CAR

THE INQUIRY OPENED JAN 28 AND REPORTED IN TUESDAY'S NEW YORK TIMES
CONCERNS JUST 3500 VEHICLES AND IS STILL ONLY A PRELIMINARY EVALUATION IT
IS UNUSUAL FOR THE NHTSA TO INVESTIGATE TIRE WEAR BUT AN AGENCY SPOKESMAN
SAID TIRES CAN BE A SAFETY PROBLEM IF THEY GO BALD WITHOUT THE DRIVER'S
KNOWLEDGE THE FENDERS OF THE LOWSLUNG NSX SHIELD MUCH OF THE REAR TIRES
FROM VIEW ACCORDING TO NHTSA WHICH HAS STATED THAT OWNER INSPECTION OF
THE TIRES WITHOUT LIFTING THE VEHICLE IS VERY DIFFICULT

ACCORDING TO THE AGENCY THE EIGHT COMPLAINTS ABOUT THE NSX INCLUDED TWO
REPORTS OF INJURYCAUSING ACCIDENTS NEITHER ONE FATAL 9402230025 940223
WINTER OLYMPICS 1994 LILLEHAMMER NORWAY  NORWAY THEIR WAY
SPONSORS SECURE BUSINESS WITH LOX  BY ROGER THUROW AND MICHAEL W
MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL

LILLEHAMMER THREE SPORTING GOODS SALESMEN FROM AMERICA SIT IN THE MIDDLE
OF FROZEN LAKE MJOSA DANGLING RED MAGGOTS IN THE FRIGID WATER ELSEWHERE AT
THE OLYMPICS SKIERS AND SKATERS ARE COLLECTING THEIR MEDALS BUT NO ONE IS
FEELING LUCKIER THAN THESE THREE ICE FISHERMEN

IT'S PRETTY INCREDIBLE BEING OUT HERE SAYS JOSEPH WOLF IN EUROPE IN
NORWAY AT THE OLYMPICS

YOU BET LAUGHS EDWARD STEMPEL PRETTY AMAZING

DREAM COME TRUE CACKLES WILLIAM CARRERA

BILL JOE AND ED WHO ALL WORK FOR BILL'S CARRERAWERNER SALES CO OF
GREENSBURG PA SOLD MORE FISHHOOKS FOR O MUSTAD & SON A COMPANY IN
GJOVIK NORWAY THAN ANY OTHER SALES REPRESENTATIVE IN THE US THEY
HUSTLED THEY CAJOLED THEY PROMOTED AND THEY BOOSTED THEIR MUSTAD HOOK
SALES BY A WHOPPING 199 BEATING THEIR NEAREST COMPETITION BY A CATFISH'S
WHISKER NOW MUSTAD IS SHOWING ITS APPRECIATION BY GIVING THEM THE GRAND
OLYMPIC SCHMOOZE FOR TWO WEEKS EVERYTHING FROM MAGGOT BAIT TO REINDEER
FILLET IS ON THE HOUSE

WE KEEP DRINKING BEER AND AFTERDINNER DRINKS AND THEY KEEP BUYING US
DINNERS AND OLYMPIC TICKETS SAYS BILL THAT'S A LOT OF FISHHOOKS

BUT IT'S A GREAT CATCH FOR MUSTAD WHICH NOW HAS THREE EXTREMELY LOYAL
CLIENTS IN ITS MOST IMPORTANT MARKET THE FISH OF LAKE MJOSA MAY NOT BE
BITING AFTER TWO HOURS THE SALESMEN HAVE ONE LITTLE PERCH AMONG THEM BUT
THEY THEMSELVES ARE HOOKED

YOU KNOW SAYS BILL I REALLY LIKE THE WAY THE NORWEGIANS DO BUSINESS

DOING BUSINESS AT THESE WINTER OLYMPICS THE RULE HAS BEEN WHEN IN NORWAY
SCHMOOZE LIKE THE NORWEGIANS

WHICH MEANS PARTYING LIKE HAGAR THE HORRIBLE IT MEANS RIDING A HORSEDRAWN
SLEIGH THROUGH MOONLIT FORESTS SAYING MUSH ON A DOG SLED AND DROPPING A
LINE THROUGH A HOLE IN THE ICE IT MEANS BEING SERVED BY PEOPLE DRESSED UP
LIKE VIKINGS RUBBING SHOULDERS WITH TROLLS AND LISTENING TO EDVARD GRIEG
RECITALS IT MEANS EATING SALMON AND REINDEER AND SALMON AND MOOSE AND
SALMON MOUSSE IF ATLANTA DOES THE SAME THING AT THE 1996 SUMMER OLYMPICS
EVERYONE WILL BE DRESSING UP LIKE RHETT AND SCARLET AND EATING GRITS

I LIKE DOING BUSINESS ON THE BACK OF A SLEIGH AS LONG AS I STAY WARM
SAYS BRIAN DYER A BUSINESSMAN FROM FREDERICKSBURG VA BEING SCHMOOZED BY
A NORWEGIAN SLATE PRODUCER HE REPRESENTS HE'S JUST HOPPED OUT OF A SLEIGH
THAT TOOK HIM TO A BONFIRE AND A ROUND OF GLOGG A NORWEGIAN HOT WINE DRINK
ON A NIGHT WHEN THE TEMPERATURE HAS SUNK BELOW ZERO IT'S INSPIRING HE
SAYS RUBBING HIS CHEEKS THOUGH YOUR FACE GETS A LITTLE COLD

AT THE OLYMPIC RESTAURANT JUST OFF LILLEHAMMER'S QUAINT MAIN STREET
LEGENDARY ARCTIC CHEF ARNE BRIMI HAS BEEN SERVING NEOARCTIC FARE TO THE
GAMES' TONIEST GUESTS INCLUDING HILLARY RODHAM CLINTON HIS KITCHEN COOKS
UP TRADITIONAL NORWEGIAN MEALS OF SMOKED LAMB GRILLED SEA TROUT WITH
JUNIPER BERRIES AND CLOUDBERRIES WITH CREAM

MR BRIMI USES MEAT AND MILK FROM OUR COWS BECAUSE THEY ARE FRESH AND
HEALTHY ANIMALS SAYS MARI BJORKE OF THE NORWEGIAN CATTLE ASSOCIATION
WHICH HAS BROUGHT ALONG A GROUP OF AGRICULTURE JOURNALISTS TO TASTE FOR
THEMSELVES HE WANTS MEAT FROM CALM COWS NOT STRESSED COWS IF IT ISN'T
STRESSED IT TASTES BETTER

THERE IS ALSO PLENTY OF CALM FISH WE'RE TRYING TO DO MARKETING FOR OUR
SALMON SAYS JAN INGE STORHEILL THE CATERER WHO CHOREOGRAPHS A KITCHEN
STAFF OF 239 THAT PREPARES LUNCH AND DINNER FOR MORE THAN 1500 SCHMOOZERS
EACH DAY AT THE GIANT TENT HOUSING THE OFFICIAL SPONSORS' PAVILIONS THERE'S
BOILED SALMON SMOKED SALMON FRIED SALMON AND GRAVLAX

NOT EVERYONE APPRECIATES STRAPPING ON A NORDIC FEEDBAG MOM ARE YOU SURE
IT'S JUST ROAST BEEF ASKS 11YEAROLD BRANDON SMITH NERVOUSLY POKING HIS
NOSE INTO A PLATE OF MYSTERIOUS MEAT

VISA INTERNATIONAL ONE OF THE OLYMPICS' BIGGEST SPONSORS IS WINING
COKING ACTUALLY BRANDON AND 24 OTHER KIDS WHO WON A CONTEST DRAWING
PICTURES OF THE OLYMPICS IN 2094 VISA WHISKED THEM ALL TO A CAVERNOUS
COUNTRY RESTAURANT FOR A NIGHT OF BEEF BOILED POTATOES AND FOLK DANCING

THE FOOD MAY BE YUCKY BUT VISA HAS THE MOST SLAVISHLY LOYAL CUSTOMERS IN
TOWN BEFORE THIS I DIDN'T REALLY CARE ABOUT CREDIT CARDS SAYS DREW
DOMOTO 13 NOW I'M LIKE VISA ALL THE WAY

SOME SCHMOOZERS FROM AMERICA AND MAINLAND EUROPE CAME PREPARED TO TONE DOWN
THE NORWEGIAN AMBIANCE OVER AT THE FOOT OF THE SKI JUMP IN THE OFFICIAL
CORPORATE SCHMOOZE TENT THE US OLYMPIC COMMITTEE IN TANDEM WITH THE
ATLANTA OLYMPIC ORGANIZERS ARE SERVING UP SEVENBEAN CHILI WITH RATTLESNAKE
MEAT IT IS THE SPECIALTY OF JOHN KRIMSKY THE USOC'S DEPUTY SECRETARY
GENERAL WHO PROCURED CANNED SNAKE FOR THE OCCASION

IN THE SWANK PRIVATE CLUB OF THE INTERNATIONAL OLYMPIC COMMITTEE TWO SUSHI
CHEFS ARRIVE EVERY DAY FROM OSLO WITH CRATES OF FRESH FISH FOR HONORED
GUESTS FROM NAGANO JAPAN HOME OF THE 1998 WINTER OLYMPICS THE CLUB ALSO
FEATURES SELECTIONS FROM THE MENU OF IOC PRESIDENT JUAN ANTONIO SAMARANCH'S
FAVORITE RESTAURANT IN LAUSANNE SWITZERLAND LOVINGLY REPLICATED BY LOCAL
CHEFS MR SAMARANCH MAY BE HUNKERED DOWN IN THE NORWEGIAN MOUNTAINS BUT HE
CAN STILL PICK AT HIS BELOVED PENNE ALLA VODKA AND FETTUCINE CON FUNGHI

BILL JOE AND ED ARE ALSO SATISFIED CUSTOMERS THE LOCAL NEWSPAPER RAN A
PHOTO OF THEM SITTING AT A HOCKEY GAME WITH MUSTAD OFFICIALS WHILE STANDING
AROUND WAITING FOR ANOTHER GAME TO START THEY WOUND UP IN A LIVE CBS
MANONTHESTREET SESSION THEY MENTIONED TO THEIR HOSTS HOW THEY WOULD LIKE
TO GO ICE FISHING AND THEY NEXT THING THEY KNEW THEY'D GONE ICE FISHING

THEY'VE ASSIGNED SOMEONE TO US TO MAKE SURE WE GET ON BUSES GET TICKETS
GET TO DINNER GO SHOPPING IN THE RIGHT SHOPS WHY WE DON'T HAVE TO DO A
THING MARVELS BILL THE NORWEGIANS HAVE A WAY OF MAKING YOU FEEL LIKE
YOU'RE PART OF A FAMILY

WHICH IS ENOUGH TO WARM A SCHMOOZER'S HEART WE WANT TO MOTIVATE THEM
SAYS LARS RIVENES MUSTAD'S PERSONNEL DIRECTOR WE WANT TO MAKE THEM BETTER
MUSTAD PEOPLE

PACKING UP THEIR FISHING GEAR BILL JOE AND ED ARE PLENTY MOTIVATED
WHAT'S NEXT THEY ASK

DINNER AT SEVEN SAYS ONE OF THE MUSTAD ICEFISHING HOSTS WE'LL PICK YOU
UP AT THE FRONT DOOR

WE'LL BE READY SAYS BILL 9402230024 940223 BUSINESS BRIEF WESTVACO
CORP FIRSTPERIOD PROFIT SKIDDED INTENSE COMPETITION IS CITED

WESTVACO CORP HURT BY CONTINUING INTENSE COMPETITION IN THE PAPER
INDUSTRY REPORTED SHARPLY LOWER FISCAL FIRSTQUARTER EARNINGS

THE NEW YORKBASED PAPER PACKAGING AND CHEMICALS COMPANY SAID NET INCOME
FOR THE QUARTER ENDED JAN 31 TOTALED 158 MILLION OR 24 CENTS A SHARE IN
THE 1993 QUARTER EARNINGS WERE RESTATED TO 761 MILLION OR 114 A SHARE
BECAUSE OF THE ADOPTION LAST AUGUST OF NEW ACCOUNTING REQUIREMENTS WITHOUT
THE ACCOUNTING CHANGE NET WAS 209 MILLION OR 31 CENTS A SHARE REVENUE
EDGED UP 29 TO 5773 MILLION FROM 5611 MILLION

WESTVACO SAID THAT WHILE VOLUME SALES ROSE 6 IN THE QUARTER EARNINGS WERE
DRAGGED DOWN BY A 3 DECLINE IN PRICES FOR ITS MIX OF PRODUCTS 9402230023
940223 TEXAS JOURNAL  LETTERS TO THE EDITOR TOO CRUEL

I ENJOY TEXAS JOURNAL BUT I AM DISTRESSED BY YOUR BRANDING INDIVIDUALS SUCH
AS HOUSTON BUSINESSWOMAN TERESA RODRIGUEZ AS LOSERS WINNERS & LOSERS
FEB 2 HOW WOULD YOU FEEL IF YOU A COLLEAGUE OR A LOVED ONE WERE
CHARACTERIZED AS A LOSER FOR ALL TEXAN READERS TO SNICKER AT 9402230022
940223 TECHNOLOGY NINE ARE CHARGED IN INVESTIGATION OF FRAUD AT NASA
  BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON AN ELABORATE FEDERAL STING OPERATION AGAINST CONTRACT FRAUD
AND BRIBERY AT THE US SPACE AGENCY HAS LED TO CRIMINAL CHARGES AGAINST
NINE MEN INCLUDING TWO LOWLEVEL NASA EMPLOYEES TWO FORMER MARTIN MARIETTA
CORP EMPLOYEES AND A CONSULTANT

AMONG THOSE CHARGED IS JAMES A ROBERTSON A PARTNER IN A VIRGINIA
CONSULTING FIRM HEADED BY JAMES BEGGS FORMER ADMINISTRATOR OF THE NATIONAL
AERONAUTICS AND SPACE ADMINISTRATION

THE CHARGES FILED BY THE US ATTORNEY'S OFFICE IN HOUSTON ARE THE FIRST
TO RESULT FROM AN INQUIRY CODENAMED LIGHTNING STRIKE IN WHICH A FEDERAL
BUREAU OF INVESTIGATION AGENT POSED AS A BUSINESSMAN OFFERING BRIBES
KICKBACKS AND CONFIDENTIAL CONTRACT DOCUMENTS

THE 20MONTH UNDERCOVER OPERATION WHICH WAS DISCLOSED IN NEWS LEAKS LAST
DECEMBER ENDED IN JULY 1993 BUT FEDERAL OFFICIALS SAID OTHER PHASES OF THE
INVESTIGATION INTO ABUSE OF GOVERNMENT CONTRACTS AND PURCHASING PRACTICES
ARE CONTINUING

IN AN AGREEMENT WITH THE GOVERNMENT MARTIN MARIETTA IS TO PAY 1 MILLION IN
REIMBURSEMENT FOR COSTS OF THE UNDERCOVER STING EVEN THOUGH FEDERAL
OFFICIALS SAID THEY PLANNED NO ACTION AGAINST THE COMPANY THIS IS NOT A
PENALTY THIS IS NOT A FINE SAID JIM TIERNEY A SPOKESMAN FOR THE
BETHESDA MD COMPANY MARTIN MARIETTA HAD NO PRIOR KNOWLEDGE OF ANY OF
THE ALLEGED ACTIVITIES OR INCIDENTS AND WE ANTICIPATE NO FURTHER
DEVELOPMENT AROUND THIS ISSUE

THE CHARGES SAY THAT THE FBI AGENT OFFERED BRIBES RANGING FROM 2500 TO
5000 A 10000 COMPUTER AND A JOB FOR ONE NASA EMPLOYEE'S SON PLUS
PROMISES OF THOUSANDS OF DOLLARS IN KICKBACKS FOR HELP IN ASSISTING HIS
FICTITIOUS COMPANY WIN CONTRACTS PART OF THE STING INVOLVED EFFORTS TO WIN
A NASA CONTRACT TO FLY A FICTITIOUS KIDNEYSTONE CRUSHING MACHINE ABOARD THE
SPACE SHUTTLE ALTHOUGH THE FBI AGENT WAS ABLE TO BUY HELP IN FORWARDING HIS
PROPOSAL THE AGENCY ULTIMATELY REJECTED THE IDEA

WHILE MOST OF THE ALLEGATIONS INVOLVE CONTRACT WORK AT NASA'S JOHNSON SPACE
CENTER IN HOUSTON THE CHARGES SHOW THAT THE INVESTIGATION ALSO REACHED
OUTSIDE THE SPACE AGENCY MR ROBERTSON THE CONSULTANT AND A FORMER VICE
PRESIDENT FOR GOVERNMENT RELATIONS AT MORTON THIOKOL INC WAS CHARGED WITH
ACCEPTING WHAT WAS PURPORTED TO BE CONFIDENTIAL INFORMATION ON A
COMPETITOR'S BID FOR A DEFENSE DEPARTMENT CONTRACT WHILE PREPARING A BID FOR
THE FBI STING'S FICTITIOUS COMPANY

MR ROBERTSON COULDN'T BE REACHED TO COMMENT

BOTH MARTIN MARIETTA AND GENERAL ELECTRIC CO WHICH EMPLOYED ONE OF THE
WORKERS CHARGED UNTIL IT SOLD ITS AEROSPACE BUSINESSES TO MARTIN MARIETTA IN
APRIL 1993 PLEDGED CONTINUED COOPERATION IN THE INVESTIGATION THE TWO
MARTIN MARIETTA EMPLOYEES A DIVISION DIRECTOR AND A MANAGER WORKED ON NASA
CONTRACTS IN TEXAS BUT HAVE SINCE LEFT THE COMPANY

JEFF CARR A NASA SPOKESMAN IN HOUSTON SAID THE TWO NASA EMPLOYEES HAVE
BEEN TRANSFERRED TO OTHER JOBS THAT DON'T INVOLVE CONTRACTS OR PURCHASING AT
THE SPACE AGENCY

ALSO NAMED IN THE CHARGES WERE ASTRO INTERNATIONAL CORP A SMALL NASA
CONTRACTOR IN LEAGUE CITY TEXAS AND THREE OF ITS TOP EMPLOYEES WHO WERE
CHARGED WITH VIOLATING PURCHASING RULES BY OBTAINING INTERNAL NASA
CONTRACTING DOCUMENTS

IN ADDITION A RESEARCH SCIENTIST FOR KRUG LIFE SCIENCES WAS CHARGED WITH
ACCEPTING 5000 TO RECRUIT HELP IN NASA TO BUY THE KIDNEYSTONE MACHINE
KRUG LIFE SCIENCES IS A SUBSIDIARY OF KRUG INTERNATIONAL CORP WHICH HAS A
SUPPORTSERVICE CONTRACT WITH NASA'S HOUSTON CENTER

A SPOKESWOMAN FOR KRUG INTERNATIONAL DAYTON OHIO SAID THAT NEITHER KRUG
LIFE SCIENCES NOR THE PARENT COMPANY WAS INDICTED AND THAT THE SCIENTIST IN
QUESTION NO LONGER WORKS FOR US AND HE HASN'T FOR QUITE SOME TIME

JAMES S HIRSCH IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9402230021 940223
FDIC DISCLOSES BIG TURNAROUND IN INSURANCE FUND  BY KENNETH H
BACON STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE FEDERAL FUND THAT INSURES BANK DEPOSITS SHOWED A BALANCE
OF 131 BILLION AT THE END OF 1993 A TURNAROUND FROM A DEFICIT OF 101
MILLION AT THE END OF 1992

THE SURGE IN RESERVES BRINGS THE BANKING INDUSTRY CLOSER TO THE DAY WHEN THE
FEDERAL DEPOSIT INSURANCE CORP CAN REDUCE THE PREMIUMS THAT BANKS PAY INTO
THE BANK INSURANCE FUND WHICH INSURES INDIVIDUAL DEPOSITS OF AS MUCH AS
100000 A 1991 LAW SAYS THE PREMIUM FOR DEPOSIT INSURANCE CAN'T FALL BELOW
AN AVERAGE OF 23 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS UNTIL THE FUND
RISES TO 125 OF DEPOSITS AS OF DEC 31 THE RATIO WAS 069 OF INSURED
DEPOSITS

IN 1991 THE INSURANCE FUND WAS 703 BILLION IN THE RED AFTER TAKING
ACCOUNT OF RESERVES SET ASIDE FOR PROJECTED BANK FAILURES PESSIMISTS IN AND
OUT OF CONGRESS FEARED THAT A WAVE OF BANK FAILURES WOULD DRAIN THE FUND
FORCING TAXPAYERS TO PAY FOR THE DEPOSIT INSURANCE THAT BACKS BANK ACCOUNTS
JUST AS THEY AS THEY DID FOR THRIFTS

BUT THE BANKING INDUSTRY RECOVERED RAPIDLY FAILURES GROUND TO A HALT AND
THE FUND SOARED FORTYONE BANKS FAILED LAST YEAR THE LOWEST NUMBER SINCE
1981 THE FAILURES COST THE FUND 566 MILLION IN 1992 120 BANKS FAILED
COSTING THE FUND 47 BILLION WITH BANK EARNINGS SOARING AND BANK FAILURES
SLOWING THE FDIC REDUCED THE FUND'S RESERVES FOR FUTURE FAILURES BY 77
BILLION LAST YEAR ON TOP OF THAT THE PREMIUMS PAID BY BANKS EXCEEDED THE
COSTS OF FAILURES BY 5 BILLION

THE FDIC ALSO ANNOUNCED THAT IT HAS REPAID WITH INTEREST A TOTAL OF 151
BILLION IT BORROWED FROM THE TREASURY TO HELP PAPER OVER THE FUND'S
DEFICITS

AGENCY OFFICIALS WERE UNDERSTANDABLY EXULTANT THE RECAPITALIZATION OF THE
BANK INSURANCE FUND IS A SUCCESS STORY FOR THE BANKING INDUSTRY THE
AMERICAN TAXPAYER AND THE FDIC SAID ANDREW HOVE ACTING FDIC CHAIRMAN WE
CAN ALL TAKE PRICE AND COMFORT IN KNOWING THAT THE FDIC HASN'T USED A SINGLE
PENNY OF TAXPAYER MONEY TO COVER COSTS OF BANK FAILURES 9402230020
940223 RULE OF LAW ENVIRONMENTAL INJUSTICE' IS ABOUT POLITICS NOT
RACISM  BY DAVID SCHOENBROD

IN RESPONSE TO COMPLAINTS THAT MINORITY COMMUNITIES SUFFER
DISPROPORTIONATELY FROM ENVIRONMENTAL HAZARDS PRESIDENT CLINTON HAS ORDERED
THE ENVIRONMENTAL PROTECTION AGENCY AND OTHER FEDERAL AGENCIES TO STOP
INFLICTING ENVIRONMENTAL INJUSTICE CUED BY HER BOSS TO BE CONTRITE EPA
ADMINISTRATOR CAROL BROWNER TOLD A GROUP OF ANGRY COMMUNITY ACTIVISTS THAT
SHE SOMETIMES IS NOT PROUD TO BE PART OF THE EPA

BUT THE VERY EXISTENCE OF ENVIRONMENTAL INJUSTICE IS FAR FROM CLEAR
ALTHOUGH MINORITY COMMUNITIES HAVE A DISPROPORTIONATE SHARE OF ENVIRONMENTAL
PROBLEMS RESEARCH SUGGESTS THAT THE CAUSE IS NOT NECESSARILY RACIAL
DISCRIMINATION ENVIRONMENTAL HAZARDS ARE LIKELY TO BE PLACED IN ANY
COMMUNITY THAT EITHER LACKS POLITICAL POWER OR IS WILLING TO ACCEPT RISKS
BECAUSE THEY CREATE JOBS OR GENERATE TAXES IN FACT VOTERS IN MANY
PREDOMINATELY WHITE COMMUNITIES HAVE RECENTLY APPROVED THE SITING OF RISKY
FACILITIES

MANY TOXIC WASTE SITES ARE NOT WASTE DUMPS BUT RATHER ABANDONED FACTORIES
WHOSE CONSTRUCTION WAS ORIGINALLY THOUGHT A PLUM TO THE LOCALE THE ABSENCE
OF FACTORIES IN WEALTHY AREAS CAN USUALLY BE EXPLAINED BY THOSE AREAS' HIGH
REALESTATE PRICES AND LACK OF GOOD ACCESS TO FREIGHT SERVICES OR NATURAL
RESOURCES

MOREOVER IN MANY INSTANCES THE ENVIRONMENTAL HAZARDS DID NOT COME TO
MINORITY NEIGHBORHOODS BUT RATHER THE MINORITY POPULATIONS CAME TO THE
HAZARDS ONE REASON IS THAT THE HAZARDS DEPRESSED PROPERTY VALUES MAKING
HOUSING MORE AFFORDABLE ANOTHER REASON IS THAT LOCAL GOVERNMENTS IN RICH
WHITE AREAS WITH NICE ENVIRONMENTS ZONE OUT THE KIND OF HOUSING THAT THE
POOR CAN AFFORD AND THE KIND OF JOBS THAT THEY CAN GET

AGAINST THIS COMPLEX REALITY MR CLINTON'S COMMAND THAT AGENCIES AVOID
DISPROPORTIONATELY HIGH AND ADVERSE  EFFECTS ON MINORITY POPULATIONS
AND LOWINCOME POPULATIONS IS NOTHING BUT FLUFF

SUPPOSE THAT THE EPA DETERMINES THAT XYZ CORP'S PROPOSED INCINERATOR WOULD
PRODUCE A RISK TO HEALTH SUFFICIENTLY LOW TO MEET GENERALLY APPLICABLE
HEALTH STANDARDS UNDER THE EXECUTIVE ORDER PEOPLE LIVING NEAR THE PROPOSED
SITE COULD NONETHELESS OBJECT THAT THEY WOULD SUFFER A DISPROPORTIONATE
IMPACT BECAUSE OTHER AREAS HAVE LOWER AIR POLLUTION LEVELS THE ORDER DOES
NOT TELL THE AGENCIES HOW TO DECIDE WHETHER A POLLUTION DIFFERENTIAL IS
LARGE ENOUGH TO BE DISPROPORTIONATE NOR DOES IT MAKE CLEAR WHETHER LOWER
ENVIRONMENTAL QUALITY IN POOR AREAS IS DISPROPORTIONATE IF CAUSED BY MARKET
FORCES WHICH ARE THE CHIEF SOURCE OF SUCH DIFFERENTIALS

MOST PEOPLE WOULD OPPOSE USING INCOME TO DETERMINE WHO GETS EXPOSED TO HIGH
RISKS BUT NOT TO LOW RISKS OR AESTHETIC PROBLEMS AFTER ALL OUR MARKET
SYSTEM ALLOWS THE WEALTHY TO BUY HEALTHIER FOODS AND NICER HOMES UNDER
MODERN ENVIRONMENTAL LAWS AGENCY ACTIONS TYPICALLY DO NOT CAUSE HIGH RISKS
SO TO WHAT EXTENT MUST AGENCIES IN GAUGING DISPROPORTIONATE IMPACT UNDER
MR CLINTON'S ORDER CHUCK THE MARKET SYSTEM THAT HE IN OTHER CONTEXTS
APPLAUDS DOES MR CLINTON'S ORDER MEAN THAT NOTHING CAN BE SITED IN AREAS
THAT ARE NOT RICH AND WHITE UNTIL EVERY RICH WHITE SUBURB GETS A PRORATA
EQUAL SHARE OF ENVIRONMENTAL PROBLEMS

WHETHER AN ENVIRONMENTAL RISK IS DISPROPORTIONATE IS A QUESTION THAT CANNOT
BE ANSWERED BY SCIENCE OR LEGAL CRITERIA AND SO MUST BE ANSWERED BY
POLITICS INSTEAD OF ADDRESSING THAT QUESTION FORTHRIGHTLY OUR POLITICAL
LEADERS ONCE AGAIN TRY TO SHIFT THE BLAME TO AGENCIES RAISING EXPECTATIONS
THAT ARE DESTINED TO BE DASHED

THERE ARE MANY EXAMPLES OF THIS BLAME SHIFTING BUT I'LL OFFER ONE FROM MY
OWN EXPERIENCE AS FOUNDER OF THE NATURAL RESOURCES DEFENSE COUNCIL'S URBAN
ENVIRONMENT PROJECT IN THE EARLY 1970S I SPEARHEADED THE ENVIRONMENTAL
MOVEMENT'S EFFORT TO DEAL WITH THE LEAD POLLUTION THAT PLAGUES INNERCITY
CHILDREN AND THAT IS TODAY A PROMINENT EXAMPLE OF ENVIRONMENTAL INJUSTICE
ALTHOUGH ENVIRONMENTALISTS BACK IN 1970 ASKED FOR A CLEAN AIR ACT THAT
BANNED LEAD ADDITIVES TO GASOLINE CONGRESS AND THE PRESIDENT ENACTED A
STATUTE THAT PASSED THE BUCK TO THE EPA

EPA SCIENTISTS QUICKLY DECIDED CORRECTLY IN HINDSIGHT THAT LEADED GAS
ENDANGERS INNERCITY CHILDREN WHO ARE MORE EXPOSED TO GASOLINE FUMES THAN
ARE CHILDREN WHO LIVE IN THE SUBURBS BUT WHEN THE AGENCY TRIED TO REGULATE
THE LEAD AS A HEALTH HAZARD THE VERY SAME LEGISLATORS AND PRESIDENTS BOTH
DEMOCRAT AND REPUBLICAN WHO PRETENDED TO BE ENVIRONMENTAL CHAMPIONS
RESPONDED TO COMPLAINTS FROM THE LEAD AND PETROLEUM INDUSTRIES BY PRESSURING
THE EPA NOT TO REGULATE AS A RESULT LEAD ADDITIVES STAYED IN GASOLINE
UNTIL THE LATE 1980S

THIS IS JUST ONE EXAMPLE THE POINT IS THAT BECAUSE CHARGES OF ENVIRONMENTAL
INJUSTICE OFTEN ORIGINATE IN ACTIONS OF LEGISLATORS AND THE PRESIDENT THEY
ARE DISINGENUOUS IN MAKING AGENCIES THE SCAPEGOAT

THE PROCEDURES THAT POLITICAL LEADERS USE TO SHIFT THE BLAME TO THE AGENCIES
MAY WELL DO MORE HARM THAN GOOD EVERY AGENCY AND DEPARTMENT MUST WITHIN 12
MONTHS DEVELOP A STRATEGY THAT MAKES ENVIRONMENTAL JUSTICE A PART OF ITS
DECISIONMAKING IN EVERY ASPECT OF ITS OPERATIONS THIS APPLIES NOT ONLY TO
LICENSING BUT ALSO TO FEDERAL GRANTS FACILITIES RULEMAKING AND
ENFORCEMENT EXAMPLES INCLUDE ENVIRONMENTAL IMPACT STATEMENTS UNDER THE
NATIONAL ENVIRONMENTAL POLICY ACT AND RECORDS OF DECISION UNDER THE
SUPERFUND TOXIC CLEANUP PROGRAM TO NAME JUST TWO THE RACECONSCIOUS
DECISONMAKING MANDATED BY THE ORDER WILL OPEN AGENCIES TO LAWSUITS UNDER
THE CIVIL RIGHTS ACT WHICH THE ORDER INTERPRETS AS APPLICABLE TO THEM

THE RED TAPE AND LITIGATION WILL SIGNIFICANTLY DELAY MANY ENVIRONMENTAL
DECISIONS AND INCREASE THE COST TO AGENCIES OF MAKING THEM THE ULTIMATE
LOSERS WILL BE THE CORPORATIONS AND STATE AND LOCAL GOVERNMENTS THAT SEEK
FEDERAL DECISIONS AND THE COMMUNITIES ESPECIALLY THE MINORITY COMMUNITIES
THAT WANT AGENCIES TO SPEED UP THE CLEANUP OF TOXIC WASTES THE COSTS WILL
BE PARTICULARLY HEAVY FOR THE EPA ON WHICH CONGRESS AND THE PRESIDENT
ALREADY HAVE HEAPED DUTIES FAR IN EXCESS OF WHAT IT CAN ACCOMPLISH WITH THE
RESOURCES THEY HAVE APPROPRIATED THE FINE PRINT OF MR CLINTON'S ORDER SAYS
FEDERAL AGENCIES SHALL ASSUME THE FINANCIAL COSTS OF COMPLYING WITH THIS
ORDER

THE COSTS AND DELAY MIGHT BE WORTHWHILE IF THE EXECUTIVE ORDER MADE
ENVIRONMENTAL PROGRAMS MORE JUST BUT THE ORDER PRESENTS ONLY THE ILLUSION
OF JUSTICE WHICH MAY WELL SUFFICE TO DEFLECT THE BLAME TO THE AGENCIES 
AT LEAST UNTIL AFTER THE NEXT PRESIDENTIAL ELECTION

MR SCHOENBROD IS A PROFESSOR AT NEW YORK LAW SCHOOL AND AUTHOR OF POWER
WITHOUT RESPONSIBILITY HOW CONGRESS ABUSES THE PEOPLE THROUGH DELEGATION
JUST OUT FROM YALE UNIVERSITY PRESS 9402230019 940223 TUESDAY'S MARKETS
 STOCKS BONDS RISE ON REPORT BY GREENSPAN  BY STEVEN E
LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL

STOCK AND BOND PRICES CLIMBED AMID INVESTOR RELIEF THAT FEDERAL RESERVE
BOARD CHAIRMAN ALAN GREENSPAN DELIVERED NO UNPLEASANT SURPRISES IN TESTIMONY
BEFORE CONGRESS THE DOLLAR ALSO ROSE

THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2420 POINTS TO 391166 STANDARD &
POOR'S 500STOCK INDEX GAINED 377 TO 47146 AND THE NASDAQ COMPOSITE INDEX
ROSE 230 TO 79115

THE FINANCIAL MARKETS REACTED FAVORABLY TO MR GREENSPAN'S SEMIANNUAL
APPEARANCE ON CAPITOL HILL IN HIS REMARKS HE SAID SHORTTERM INTEREST
RATES ARE LIKELY TO CLIMB BUT HE STOPPED SHORT OF PREDICTING WHEN THE NEXT
FED RATE INCREASE WOULD OCCUR CHAIRMAN GREENSPAN DIDN'T SAY ANYTHING
RADICAL IN HIS TESTIMONY SAID STEFAN D ABRAMS DIRECTOR OF EQUITY
STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES IF THE MARKETS WERE
INTERPRETING EVERYTHING IN A BEARISH WAY ON FRIDAY THEY RETURNED TO AN EVEN
KEEL TODAY

STOCKS WERE AIDED BY SOME UPBEAT EARNINGS NEWS A BETTERTHANEXPECTED
PROFIT REPORT FROM DEERE SPARKED BUYING IN A BROAD RANGE OF ECONOMICALLY
SENSITIVE STOCKS CONSUMER STOCKS ALSO SURGED

ALTHOUGH SHORT RATES WILL TREND HIGHER IN THE MONTHS AHEAD THIS WILL BE
AMPLY OFFSET BY EXCELLENT CORPORATE PROFIT GROWTH REFLECTING THE BUOYANT
ECONOMY MR ABRAMS SAID

BESIDES MR GREENSPAN'S REMARKS BOND TRADERS ALSO HEARD PRESIDENT CLINTON
GIVE A FAVORABLE ASSESSMENT ON THE ECONOMY AND INTEREST RATES AFTER MR
GREENSPAN'S TESTIMONY MR CLINTON SAID HE BELIEVES ECONOMIC GROWTH CAN
CONTINUE WITH LITTLE INFLATION AND RELATIVELY LOW INTEREST RATES

THE BOND MARKET RECOVERED A BIT FROM ITS SHARP SELLOFF LAST WEEK ERIC K
CHEUNG MANAGER OF THE FIXEDINCOME DIVISION OF WILMINGTON TRUST CO SAID
THE DECLINES LAST WEEK INDICATED BOND TRADERS ARE PREPARING FOR THE NEXT FED
RATE INCREASE MR CHEUNG EXPECTS THE FEDERALFUNDS RATE THE RATE BANKS
CHARGE ONE ANOTHER FOR SHORTTERM LOANS TO BE RAISED ANOTHER 1/4 POINT
EARLY IN THE SECOND QUARTER

THE BOND MARKET HAS ROOM FOR IT AND IS ALREADY PRICING IT IN MR CHEUNG
SAID

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 074 TO 11557

IN MAJOR MARKET ACTION

STOCK PRICES ROSE VOLUME TOTALED 270636000 SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1139 ISSUES ROSE AND 1003 FELL

BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 5/16
POINT OR MORE THAN 3125 FOR EACH 1000 FACE AMOUNT TO YIELD 660

THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT
17235 MARKS AND 10565 YEN COMPARED WITH 17140 MARKS AND 10460 YEN
FRIDAY 9402230018 940223 BUSINESS BRIEF HOME DEPOT INC FISCAL
4THQUARTER NET ROSE IN SPITE OF EXPANSION COSTS

HOME DEPOT INC SAID FISCAL FOURTHQUARTER PROFIT ROSE 16 DESPITE HIGHER
EXPANSION COSTS AND BAD WEATHER

FOR THE QUARTER ENDED JAN 30 THE ATLANTABASED HOMEIMPROVEMENT RETAILER
REPORTED NET INCOME OF 1127 MILLION OR 25 CENTS A SHARE UP FROM 971
MILLION OR 21 CENTS A SHARE A YEAR EARLIER SALES JUMPED 26 TO 229
BILLION FROM 182 BILLION

THE RESULTS WERE IN LINE WITH MOST ANALYSTS' EXPECTATIONS HOME DEPOT SHARES
ROSE TO 40125 UP 1125 IN COMPOSITE TRADING ON THE NEW YORK STOCK
EXCHANGE

SAMESTORE SALES ROSE 6 HOME DEPOT SAID YEAREARLIER RESULTS REFLECTED
STRONG SALES AFTER HURRICANE ANDREW OTHERWISE SAMESTORE SALES IN THE
JUSTCOMPLETED QUARTER WOULD HAVE RISEN 9

FOR THE YEAR NET JUMPED 26 TO 4574 MILLION OR 101 A SHARE FROM
3629 MILLION OR 82 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 29 TO
924 BILLION 9402230017 940223 REVIEW & OUTLOOK EDITORIAL ASIDES 
BUSH INNOCENT

PRESIDENT GEORGE BUSH CAUGHT BLAME ENOUGH WITHOUT OUR BLAMING HIS
ADMINISTRATION FOR THE 1987 MARKET CRASH AS IN HASTE WE DID IN YESTERDAY'S
EDITORIAL BANZAI THE WAR AGAINST THE BUNDESBANK HELPING TO PRECIPITATE
THE CRASH WAS OF COURSE WAGED BY TREASURY SECRETARY JAMES BAKER UNDER
PRESIDENT RONALD REAGAN IN PROBABLY THE BIGGEST ECONOMIC ERROR OF THE
REAGAN ADMINISTRATION 9402230016 940223 BUSINESS BRIEF SOUTHLAND
CORP LOSS WIDENED REVENUE FELL BY 59 FOR FOURTH QUARTER

SOUTHLAND CORP IN DALLAS REPORTED A WIDENED FOURTHQUARTER LOSS AND A 59
DROP IN REVENUE REFLECTING THE COMPANY'S CONTINUING RETRENCHMENT PROGRAM

BUT THE CONVENIENCESTORE RETAILER AND OPERATOR AND FRANCHISER OF 7ELEVEN
STORES ASSERTING THAT ITS RECOVERY IS ON TRACK SAID ITS PROFIT BEFORE
ONETIME CHARGES GREW 26 TO 149 MILLION FROM 118 MILLION THE CHARGES
MOSTLY CONSISTED OF LOSSES RELATED TO THE CLOSING OF STORES

THE COMPANY'S NET LOSS IN THE LATEST QUARTER WAS 364 MILLION ON REVENUE OF
163 BILLION COMPARED WITH A LOSS OF 294 MILLION ON REVENUE OF 173
BILLION

SOUTHLAND IN DALLAS WHICH EMERGED FROM BANKRUPTCYLAW PROCEEDINGS IN EARLY
1991 ATTRIBUTED THE OPERATING IMPROVEMENT TO STRENGTH IN ITS
RETAILGASOLINE BUSINESS LOWER INTEREST EXPENSES AND FURTHER REDUCTION OF
OPERATING COSTS 9402230015 940223 SOROS GIVES TO HELP EAST EUROPE 
RECOVER LOST CULTURAL TREASURES  BY BARRY NEWMAN STAFF REPORTER OF
THE WALL STREET JOURNAL

SOMEONE SMART ENOUGH TO MAKE 1 BILLION IN A MONTH PLAYING FOREIGNEXCHANGE
MARKETS MIGHT HAVE SOMETHING TO TEACH EAST EUROPEANS ABOUT MARKETS AND
MONEY GEORGE SOROS CERTAINLY DOES YET HE WOULD JUST AS SOON TEACH THEM
MEDIEVAL HISTORY OR THE DEVELOPMENT OF THE POSTWAR NOVEL

OF THE HUNDREDS OF MILLIONS MR SOROS HAS GIVEN THE EAST AMOUNTS
OUTSTRIPPING MANY WESTERN COUNTRIES LESS HAS GONE TO RECONSTRUCTING
CAPITALISM THAN TO REDISCOVERING THE HUMAN RICHES THAT COMMUNISM PLUNDERED

HIS GOAL IS TO TURN THE CLOSED SOCIETY OF TOTALITARIANISM INTO AN OPEN
SOCIETY THAT SETS FREE THE CRITICAL POWERS OF MAN IN THE WORDS OF HIS OWN
TEACHER THE PHILOSOPHER KARL POPPER BEFORE THE REVOLUTIONS DISSIDENTS IN
EASTERN EUROPE HAD A SIMILAR GOAL THEY CALLED IT CIVIL SOCIETY DEFINED
BY SOME AS THE CONNECTIVE TISSUE OF DEMOCRATIC POLITICAL CULTURE

THESE ARE THE THOUSANDS OF STRANDS OF A CULTURE'S INTERACTIONS FROM
LIBRARIES TO GOODWILL STORES THAT HELP KEEP PEOPLE PEACEABLE IN THE ABSENCE
OF A POLICE STATE A COMMUNITY FREE OF DISCRIMINATION AND DOGMA IS LIKE THE
AIR AS MR SOROS HAS PUT IT YOU HARDLY KNOW IT'S THERE UNTIL IT'S GONE IN
AIDING THE EAST BY HARDWIRING IT TO CAPITALISM HE BELIEVES THE WEST HAS
FORGOTTEN ABOUT THE AIR

WE THOUGHT FREE ENTERPRISE LAISSEZFAIRE HE SAYS THE FAILURES IN
EASTERN EUROPE PROVE THAT LAISSEZFAIRE IS A FALSE DOCTRINE IT'S NOT ENOUGH
TO REMOVE AN OPPRESSIVE REGIME OUR SYSTEM IS MORE COMPLEX THAN THE ONE THAT
COLLAPSED IF THE WEST HAD GIVEN A BIG HAND UP A LOT MORE PROGRESS COULD
HAVE BEEN MADE

IN ITS FOCUS ON FINANCE AND GOVERNMENT THE WEST HASN'T TOTALLY NEGLECTED
THE SOFTER AND SUBTLER SIDES OF FREE SOCIETIES AMERICAN VOLUNTARY
ORGANIZATIONS MULTIPLIED THEIR GIVING 10 TIMES IN 1990 ALONE TO 50
MILLION THE EUROPEAN UNION IS FUNDING PROJECTS THAT SUPPORT TRADE UNIONS
WOMEN RURAL COOPS LOCAL NEWSPAPERS HUMAN RIGHTS AS WITH ECONOMIC
ADVICE THOUGH MOST OF THIS MONEY GOES TO WESTERNERS WHO IMPART THEIR
WISDOM AND FLY HOME

MR SOROS BORN IN HUNGARY 63 YEARS AGO THINKS HE HAS A BETTER IDEA HAVING
MADE HIS FORTUNE AS A FUND MANAGER HE OPENED A FOUNDATION THERE 10 YEARS
AGO NOW HE HAS OFFICES IN 19 STATES OF THE OLD SOVIET BLOC MORE THAN ANY
OTHER CHARITY BY MID1993 HE HAD GIVEN AWAY 300 MILLION LAST FALL HE
PLEDGED 250 MILLION TO REVAMP RUSSIAN EDUCATION AND THEN GRANTED A 200
MILLION ENDOWMENT TO THE CENTRAL EUROPEAN UNIVERSITY WHICH HE FOUNDED IN
1990 AND 100 MILLION TO A THINK TANK CALLED THE OPEN SOCIETY INSTITUTE

STILL IN THE EYES OF OFFICIAL AID GIVERS MR SOROS'S CHARITABLE NOTIONS
ARE RADICAL THEY SQUIRMED A YEAR AGO WHEN HE PROPOSED HANDING DOLLAR BILLS
TO POOR RUSSIANS WITH 6 A MONTH ENOUGH TO LIVE ON HE FIGURED 10 BILLION
COULD SAVE THE COUNTRY NOBODY BOUGHT IT HE SAYS POLITICALLY IT WAS
IMPRACTICAL ANOTHER SOROS IDEA FOR A WESTERNFUNDED TRADE ORGANIZATION TO
REVIVE TRADE AMONG THE FORMER COMECON COUNTRIES RECEIVED A SIMILAR
BRUSHOFF

BUT BUREAUCRATIC RELUCTANCE COULDN'T STOP MR SOROS FROM SHOWING HIS DISGUST
WITH THE WEST'S FAILURE TO BROKER A PEACE IN BOSNIA HE POURED 50 MILLION
INTO HUMANITARIAN AID THERE LAST YEAR AND WITH A LONGTERM PROMISE OF 100
MILLION HE GOT THE JUMP ON OFFICIAL PLANS TO KEEP RUSSIAN SCIENTISTS IN
THEIR LABS FOR JUST 15 MILLION HE HAS SO FAR PROVIDED A YEAR'S PAY 
500 TO 28000 OF THEM

HE TRIED SEVERAL TIMES TO WORK WITH BIG INSTITUTIONS SAYS A FRIEND IN
HUNGARY IT NEVER WORKED OUT HE MAKES DECISIONS IN THE SPHERE OF CULTURE
OR AID AS HE DOES IN BUSINESS VERY VERY QUICKLY BUT WHILE HE IS A TOUGH
BUSINESSMAN HERE HE CAN BE CHEATED HE THINKS STRICT ACCOUNTING INTERFERES
WITH TRUST

TRUST IS WHAT SEPARATES MR SOROS FROM THE INSTITUTIONS INSTEAD OF HIRING
WESTERNERS SKILLED IN GRANTSMANSHIP HE GIVES STRAIGHT TO EASTERNERS WE
SUPPORT THE RECIPIENT NOT THE DONOR HE SAYS WE LEAVE IT TO THEM TO
DECIDE HOW TO SPEND THE MONEY

YOU IN AMERICA CAN'T KNOW WHAT WE NEED SAYS IRENA VEISAITE OF THE SOROS
FOUNDATION IN LITHUANIA YOU CAN'T JUMP OVER OUR MENTALITY THE CATALOG OF
ITEMS SHE AND OTHER EASTERNERS FEEL THEY NEED MOST DEMONSTRATES HOW AIRLESS
THEIR ATMOSPHERE HAS BEEN

THE LITHUANIANS HAVE DRAWN UP A LIST OF BOOKS TO TRANSLATE THE WORLDLY
PHILOSOPHERS THE CONCEPT OF LAW DEMOCRACY AND ITS CRITICS NATIONALISM IN
THE TWENTIETH CENTURY THE SECOND SEX THE ESTONIANS FUND A RADIO STATION
FOR THEIR NERVOUS RUSSIAN MINORITY THE POLES SUPPORT THE FIRST EXCOMMUNIST
BRANCH OF ALCOHOLICS ANONYMOUS THE HUNGARIANS HAVE GIVEN ONE YOUNG MAN A
GRANT TO WRITE ABOUT USE OF THE BAGPIPE IN THE CARPATHIAN BASIN

VENTURES LIKE THESE HINT AT THE EAST'S HIGHEST IDEALS MR SOROS ALSO WANTS
TO SAVE IT FROM ITS WORST INSTINCTS THAT WAS THE AIM OF HIS CENTRAL
EUROPEAN UNIVERSITY IN BUDAPEST AND PRAGUE AT CAMPUSES WHERE ENGLISH IS A
COMMON TONGUE 500 SERBS AND CROATS RUSSIANS AND UKRAINIANS HUNGARIANS AND
ROMANIANS SEEK A COMMON GROUND WE TRAIN AN ELITE IF NOT IN EACH OTHER'S
LANGUAGE AT LEAST IN EACH OTHER'S MOTIVATION SAYS ISTVAN REV ITS
ACADEMIC DIRECTOR IN BUDAPEST THE UNIVERSITY IS FULL OF TENSIONS

COURSES RUN FROM THE LITERATURE OF NATIONAL IDENTITY TO PHILOSOPHY OF ART
AND THE SOCIOLOGY OF RACE MEDIEVAL HISTORY ISN'T PURE LUXURY WHEN THE
LEGACY OF FEUDS BETWEEN THE LATIN AND ORTHODOX RITES STILL WREAKS HAVOC A
FEW HUNDRED MILES AWAY

YOU CANNOT HAVE A UNIVERSITY IF YOU TEACH ONLY SUBJECTS WITH IMMEDIATE
PRACTICAL VALUE PROF REV SAYS

THE CURRICULUM DOESN'T IGNORE BUSINESS LAW OR PUBLIC FINANCE THERE EVEN IS
A PRIVATIZATION PROJECT IN A SMALLISH WAY MR SOROS DOES HIS BIT TO
PROMOTE FREE ENTERPRISE IN THE EAST BUT ONE THING HE WON'T DO IS PUT HIS
INVESTMENTS WHERE HIS CHARITY IS

JUST AFTER THE REVOLUTIONS HE WENT TO AN ANNUAL CONCLAVE OF BIGWIGS IN
DAVOS SWITZERLAND BUSINESSMEN SWAMPED THE EAST'S NEW FINANCE MINISTERS
EAGER FOR DEALS AS A FRIEND TELLS IT MR SOROS HUNG BACK CONCLUDING
QUIETLY THAT A BETTER PLACE TO BET HIS MILLIONS WAS IN MEXICO AND APART
FROM RELATIVELY SMALL EXCEPTIONS SAYS THE FRIEND THAT IS WHAT HE DID
9402230014 940223 MARKETING BRIEF HERSHEY FOODS CORP NUTCOVERED
BAR STRINGS OF LICORICE JOINING LINEUP

HERSHEY FOODS CORP IS INTRODUCING TWO NEW CANDIES ONE A NUTCOVERED BAR
AND THE OTHER LICORICE STRINGS

NUTRAGEOUS A BAR FEATURING REESE'S PEANUT BUTTER CARAMEL AND ROASTED
PEANUTS COVERED WITH HERSHEY'S MILK CHOCOLATE IS ROLLING OUT NATIONALLY
NOW THE BAR IS THE FIRST LINE EXTENSION OF THE REESE'S BRAND SINCE REESE'S
PIECES WERE LAUNCHED IN 1978

ALSO APPEARING AT CANDY COUNTERS SOON WILL BE PULLNPEEL CHERRYFLAVORED
LICORICE THAT PEELS OFF A STICK IN STRINGS AN EXTENSION OF HERSHEY'S
TWIZZLERS LICORICE LINE THE PRODUCT IS WHAT THE COMPANY SAID WAS THE FIRST
OF WHAT WE HOPE IS A GROWING ARRAY OF SUCH CANDIES 9402230013 940223
IONICS WHEYPROCESSING JOB

WATERTOWN MASS IONICS INC SAID IT FINALIZED A 126 MILLION CONTRACT
TO PROVIDE WHEY PROCESSING FOR MIDAMERICA DAIRYMEN INC ONE OF THE
NATION'S LARGEST DAIRY COOPERATIVES

THE CONTRACT IS FOR 50 MONTHS AND HAS RENEWAL OPTIONS THE COMPANY SAID
9402230012 940223 WHO'S NEWS NYNEX PICKS SEIDENBERG AS PRESIDENT 
PUTTING HIM IN LINE FOR TOP POST IN 1995  BY LESLIE CAULEY STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK NYNEX CORP TAPPED A 28YEAR INSIDER IVAN G SEIDENBERG TO
ASSUME THE NEW POST OF PRESIDENT AND CHIEF OPERATING OFFICER MAKING HIM THE
HEIR APPARENT FOR THE TOP JOB WHEN THE CHAIRMAN RETIRES NEXT YEAR

IN SELECTING THE 47YEAROLD MR SEIDENBERG WHO HAD OVERSEEN NYNEX'S
REGIONAL TELEPHONE COMPANIES AND HAS EXTENSIVE EXPERIENCE IN THE REGULATORY
ARENA NYNEX'S BOARD ALL BUT PASSED OVER ANOTHER TOP CANDIDATE FREDERIC
V SALERNO

MR SALERNO 50 IS A VICE CHAIRMAN WHO HAS GUIDED NYNEX'S UNREGULATED
BUSINESSES TROLLING FOR NEW OPPORTUNITIES WORLDWIDE HE WAS INSTRUMENTAL
IN PUSHING NYNEX TO INVEST 12 BILLION IN VIACOM INC FOR THE LATTER'S
ULTIMATELY SUCCESSFUL BID FOR PARAMOUNT COMMUNICATIONS INC BUT THE NYNEX
DEAL DREW SOME CRITICISM ON WALL STREET BECAUSE NYNEX RECEIVED LITTLE
TANGIBLE COMMITMENT FOR JOINT VENTURES OR ANY ASSURANCE OF AN INFLUENTIAL
VOICE IN VIACOM'S AFFAIRS

THE DIE HAS BEEN CAST SAID JACK GRUBMAN AN ANALYST AT PAINEWEBBER IN NEW
YORK NYNEX'S CURRENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM C
FERGUSON IS EXPECTED TO RETIRE NEXT YEAR WHEN HE REACHES THE AGE OF 65 HE
TURNS 65 ON OCT 26 1995

THE PROMOTION OF MR SEIDENBERG COMES AT A TIME WHEN NYNEX IS BRACING FOR
ASSAULTS ON ITS LUCRATIVE NEW YORK TELEPHONE MARKET BY OTHER BABY BELLS AND
CABLE COMPANIES AT THE SAME TIME NYNEX IS WAGING A PITCHED CAMPAIGN ON THE
REGULATORY FRONT ARGUING IN FAVOR OF LOOSER REGULATION AS IT SETS OUT PLANS
FOR BUILDING INTERACTIVE NETWORKS ACROSS THE NORTHEAST

THE THREAT TO NYNEX'S BASIC BUSINESS AND THE NEED FOR REGULATORY
BREAKTHROUGHS MAY HAVE PLAYED TO MR SEIDENBERG'S ADVANTAGE IN WINNING THE
SUPPORT OF THE BOARD ANALYSTS NOTED SINCE 1991 HE HAS BEEN VICE CHAIRMAN
OF NYNEX'S TELECOMMUNICATIONS GROUP OVERSEEING THE VARIOUS REGIONAL
COMPANIES THAT TOGETHER SERVE 12 MILLION CUSTOMERS IN THE NORTHEAST PRIOR
TO THAT MR SEIDENBERG HELD A SUCCESSION OF JOBS IN ENGINEERING OPERATIONS
AND FEDERAL REGULATORY MATTERS HE BEGAN HIS TELECOMMUNICATIONS CAREER IN
1966 AT NEW YORK TELEPHONE CO WHICH WAS THEN PART OF THE MONOPOLY BELL
SYSTEM

MR SEIDENBERG IN AN INTERVIEW SAID HE WILL CONTINUE TO LOOK FOR NEW WAYS
TO EKE OUT OPERATING EFFICIENCIES AND BEEF UP MARKETING EFFORTS THAT
EMPHASIZE THE NYNEX BRAND NAME TWO INITIATIVES ALREADY UNDER WAY I'M
ALMOST PASSIONATE ABOUT SOME OF THE PROGRAMS WE HAVE GOT GOING HE SAID
INDICATING HE HAD NO NEW PROGRAMS TO OFFER

NYNEX RECENTLY TOOK A FOURTHQUARTER CHARGE OF 16 BILLION TO CUT 16800
JOBS OVER THE NEXT THREE YEARS AND YESTERDAY IT SWEETENED EARLYRETIREMENT
TERMS TO ENCOURAGE MANAGERS TO TAKE PART IN THE CUTBACKS

MR SEIDENBERG WHO ALSO RETAINS HIS VICE CHAIRMAN TITLE DECLINED TO SAY
WHETHER HIS NEW DUTIES AMOUNT TO AN ANNOINTMENT AS NYNEX'S NEXT CHIEF
EXECUTIVE OFFICER SAYING THAT MATTER IS UP TO THE BOARD

MR SALERNO WILL CONTINUE TO OVERSEE NYNEX'S STRATEGIC DEVELOPMENT UNDER THE
NEW TITLE OF VICE CHAIRMAN FOR FINANCE AND BUSINESS DEVELOPMENT ADDING TO
HIS DUTIES OVERSIGHT OF NYNEX'S CHIEF FINANCIAL OFFICER

SOME ANALYSTS DISMISS THE NOTION THAT THE VIACOM DEAL MIGHT HAVE LEFT MR
SALERNO IN BAD STANDING WITH THE BOARD INDEED SOME ANALYSTS SAY IT MAY
HAVE BOLSTERED HIS REPUTATION AS AN AGGRESSIVE DEAL MAKER GIVEN THAT VIACOM
WAS ULTIMATELY SUCCESSFUL IN ITS TUGOFWAR WITH QVC INC FOR PARAMOUNT

WITH THE NEW APPOINTMENTS SEIDENBERG HAS A BIGGER PIECE OF THE BUSINESS
BUT SALERNO HAS A CHANCE TO MAKE A BIG DIFFERENCE TOO SAID STEVEN R
YANIS OF KIDDER PEABODY & CO SO MAYBE SUCCESSION IS STILL UP IN THE AIR
IN OCTOBER 1995 I GUESS WE'LL KNOW FOR SURE 9402230011 940223 BUSINESS
BRIEF ROGERS COMMUNICATIONS INC COMPANY SEEKS COURT ORDER IN ITS
BID FOR MACLEAN ASSETS

ROGERS COMMUNICATIONS INC IS SEEKING A COURT ORDER TO FORCE MACLEAN HUNTER
LTD TO INCLUDE IT IN ANY AUCTION OF THE LATTER'S CANADIAN CABLETELEVISION
ASSETS

ROGERS AS PREVIOUSLY REPORTED HAS BID 279 BILLION CANADIAN DOLLARS
US209 BILLION TO ACQUIRE ALL SHARES OF MACLEAN HUNTER A TORONTO
PRINTING AND PUBLISHING CONCERN BUT DIRECTORS OF MACLEAN HUNTER HAVE
REJECTED THE C17ASHARE OFFER

THE COMPANY IS NOW CONSIDERING THE SALE OF ITS EXTENSIVE CANADIAN CABLE
OPERATIONS THE ASSET IN WHICH ROGERS HAS THE GREATEST INTEREST

IN ITS ACTION FILED IN THE SUPREME COURT OF ONTARIO ROGERS IS ASKING THE
COURT TO ORDER MACLEAN HUNTER TO TURN OVER ANY INFORMATION AVAILABLE TO
INTERESTED BIDDERS FOR ANY MACLEAN HUNTER ASSETS

LAST WEEK MACLEAN HUNTER SET UP DATA ROOMS ON CABLE AND OTHER OPERATIONS
ROGERS SAID MACLEAN HUNTER BARRED IT FROM LOOKING AT CERTAIN DATA UNLESS
ROGERS DROPPED ITS BID ROGERS IS A TORONTO TELECOMMUNICATIONS CONCERN
9402230010 940223 LETTERS TO THE EDITOR WHERE BILL DIDN'T SPEAK

JAMES BOVARD'S FEB 11 EDITORIALPAGE ARTICLE CLINTON'S FRAUDULENT TRADING
POLICY EXCORIATED OUR GOVERNMENT FOR USING AN INCORRECT STATISTIC WHILE
NEGOTIATING WITH CHINA SINCE MR BOVARD IS INTERESTED IN THROWING STONES
HE MAY WANT TO CHECK HIS OWN GLASS HOUSE

HE REFERS TO PRESIDENT CLINTON'S SPEECH LAST JULY AT TOKYO UNIVERSITY
PRESIDENT CLINTON DID NOT SPEAK AT TOKYO UNIVERSITY TODAI THE PINNACLE OF
THE JAPANESE EDUCATIONAL SYSTEM THE PRESIDENT AND HIS WIFE SPOKE AT WASEDA
UNIVERSITY A PRESTIGIOUS PRIVATE UNIVERSITY FOR REASONS THAT ARE TOO
COMPLEX FOR MR BOVARD TO BOTHER WITH PRESIDENT CLINTON DID NOT SPEAK AT
TODAI 9402230009 940223 SEC CAUTIONS AGAINST EASING UTILITIES' ENTRY 
TO COMMUNICATIONS

WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS COOL TO A
LEGISLATOR'S PROPOSAL THAT WOULD ALLOW MULTISTATE UTILITY COMPANIES TO ENTER
THE TELECOMMUNICATIONS BUSINESS MORE EASILY

A BROAD EXEMPTION OF TELECOMMUNICATIONS ACTIVITIES COULD SEVERELY LIMIT THE
ABILITY OF THE COMMISSION TO PROTECT THE CONSUMERS AND INVESTORS OF
REGISTERED HOLDING COMPANIES THE SEC SAID IN A LETTER TO HOUSE MEMBERS WHO
ARE WORKING ON TELECOMMUNICATIONS LEGISLATION

REP RICK BOUCHER D VA RECENTLY SUGGESTED THAT HE WOULD OFFER
LEGISLATION GIVING UTILITY COMPANIES A BLANKET EXEMPTION FROM SEC
REGULATIONS THAT COULD PROHIBIT THEIR JOINING THE TELECOMMUNICATIONS
BUSINESS SUCH A BILL HAS YET TO BE OFFERED

THE SEC MUST APPROVE ANY DIVERSIFICATION BY PUBLIC UTILITYHOLDING COMPANIES
THAT DO BUSINESS IN MORE THAN ONE STATE TYPICALLY THE SEC HAS REJECTED
DIVERSIFICATION PLANS WHEN A COMPANY CAN'T SHOW THAT A NEW BUSINESS VENTURE
HAS A FUNCTIONAL RELATIONSHIP TO THE COMPANY'S CORE UTILITY BUSINESS
SINGLESTATE UTILITY COMPANIES ARE EXEMPT FROM SEC OVERSIGHT

BECAUSE OF THE FUNCTIONAL RELATIONSHIP' REQUIREMENT REGISTERED HOLDING
COMPANIES ESCAPED THE REVERSALS SUFFERED IN THE 1980S BY EXEMPT HOLDING
COMPANIES AND FREESTANDING UTILITIES THAT HAD INVESTED IN REAL ESTATE
DRUGSTORES FINANCIAL INSTITUTIONS AND LIFE INSURANCE COMPANIES THE SEC
SAID IN ITS LETTER TO MR BOUCHER AND DEMOCRATIC REPS EDWARD MARKEY OF
MASSACHUSETTS AND PHILIP SHARP OF INDIANA

MR MARKEY IS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE
SUBCOMMITTEE AND MR SHARP IS CHAIRMAN OF THE HOUSE ENERGY AND POWER
SUBCOMMITTEE 9402230008 940223 MARKETING & MEDIA HOME SHOPPING PLANS 
TV VENTURE IN JAPAN WITH TCI SUMITOMO

ST PETERSBURG FLA HOME SHOPPING NETWORK INC INTENDS TO EXPAND INTO
JAPAN THROUGH A PROPOSED ALLIANCE WITH ITS MAJORITY OWNER
TELECOMMUNICATIONS INC AND JAPAN'S SUMITOMO CORP

THE VENTURE OUTLINED IN A LETTER OF INTENT AMONG THE THREE COMPANIES WOULD
MARK THE TELEVISION HOMESHOPPING GIANT'S FIRST ATTEMPT TO CRACK A FOREIGN
MARKET SINCE AN EARLIER EFFORT FAILED LAST YEAR HOME SHOPPING WAS
OUTMANEUVERED BY RIVAL QVC INC WHICH SNARED A JOINT VENTURE IN ENGLAND
THAT HOME SHOPPING HAD EXPECTED TO CONCLUDE WITH NEWS CORP'S 50OWNED
BSKYB HOME SATELLITETV VENTURE THE TWO HOMESHOPPING CONCERNS WHICH
VIRTUALLY CONSTITUTE THE ENTIRE US INDUSTRY ARE STAKING OUT INTERNATIONAL
MARKETS TO BOOST GROWTH

HOME SHOPPING WHICH PIONEERED THE INDUSTRY IN THE US DESCRIBED THE
LETTER OF INTENT AS A FIRST STEP TOWARD ESTABLISHING THE JAPANESE TV
HOMESHOPPING SERVICE IT SAID IT ENVISIONED ENTICING OTHER MAJOR JAPANESE
COMPANIES TO JOIN THE VENTURE AND ANTICIPATES LAUNCHING THE OPERATIONS
WITHIN A YEAR SUMITOMO ONE OF JAPAN'S MAJOR INDUSTRIAL COMBINES WITH THE
NATION'S LARGEST CABLETELEVISION HOLDINGS ALREADY HAS CLOSE PROGRAMMING
TIES WITH TELECOMMUNICATIONS THE LARGEST CABLE OPERATOR IN THE US

ALTHOUGH INTERNATIONAL EXPANSION OFFERS GROWTH OPPORTUNITIES FOR BOTH QVC
AND HOME SHOPPING PROFITS FROM FOREIGN VENTURES ARE AT LEAST TWO YEARS
AWAY ANALYSTS ESTIMATE IT'S A LONGTERM POSITION NOTED CRAIG BIBB AN
ANALYST WITH PAINEWEBBER NOBODY'S MAKING ANY MONEY AND WON'T FOR TWO OR
THREE YEARS 9402230007 940223 MARKETING NOW MARKETERS IN JAPAN
STRESS THE LOCAL ANGLE  BY JENNIFER CODY STAFF REPORTER OF THE
WALL STREET JOURNAL

TOKYO AFTER YEARS OF FILLING THEIR ADVERTISING WITH LONGLEGGED FOREIGN
MODELS AND EXOTIC INTERNATIONAL LOCALES JAPAN'S MARKETERS ARE DISCOVERING A
NEW CULTURE THEIR OWN

WITH THE JAPANESE ECONOMY IN A RECESSION AND CONSUMER SPENDING SLOW THE
TRENDY INTERNATIONALISM OF THE BUBBLE YEARS IS GIVING WAY TO A NEW INWARD
MARKETING STYLE OF MODESTY AND CONSERVATISM

THE CHANGE IS APPARENT ON THE STREETS A POPULAR TOKYO EATERY TOUTS NOODLES
KNOWN AS RAMEN THAT HAVE A UNIQUE JAPANESE TASTE ALTHOUGH SUCH NOODLES
ARE ACTUALLY A CHINESE SPECIALTY THE POPULAR WOMAN'S MAGAZINE HANAKO OFFERS
LONG ARTICLES ON FINDING TOKYO'S BESTVALUE SUSHI INSTEAD OF WHERE TO FIND
TOKYO'S BEST FRENCH RESTAURANT

JAPAN RAILWAYS IS URGING CUSTOMERS TO ABANDON OVERSEAS HOLIDAYS AND VISIT
THEIR OWN COUNTRY ITS OMNIPRESENT BILLBOARDS FEATURE SCENES FROM SOME
LESSVISITED RURAL AREAS WITH FISHERMEN SCHOOLGIRLS AND THAT VERY JAPANESE
SYMBOL THE BULLET TRAIN THE LOGO BOUND FOR THE HEARTLAND JAPAN
ANOTHER RAILWAY CAMPAIGN FOR THE ANCIENT CAPITAL KYOTO INSTRUCTS
JAPANESE ON THE PROPER WAY TO SIT ON A CUSHION

JAPANESE BUSINESSES ARE RESTRUCTURING AND THE GOVERNMENT IS RESTRUCTURING
SO PEOPLE ARE DOING THE SAME THING SAYS TETSUJI SHIMIZU SPOKESMAN FOR
ADVERTISING GIANT DENTSU INC WHICH CREATED THE RAILWAY ACCOUNT ADDS CLAY
GARY A DENTSU MARKETING PLANNER NOW THE REACTION IS NOT TO SAY FOREIGN
THINGS ARE BAD BUT TO SAY WAIT THERE ARE ALSO SOME ASPECTS OF JAPANESE
CULTURE THAT ARE GREAT

MARKET RESEARCH SUPPORTS THE VIEW THAT THE JAPANESE ARE LOOKING HOMEWARD A
LIST OF JAPAN'S MOST POPULAR PRODUCTS IN NIKKEI TRENDY MAGAZINE RECENTLY
INCLUDED GREEN TEA JAPANESE FOOD FROM OUTDOOR PUSHCARTS AND THE BESTSELLER
SEIHIN NO SHISO OR THE CONCEPT OF HONEST POVERTY

YOUNG PEOPLE ARE INCREASINGLY EATING BENTOS TRADITIONAL LUNCH BOXES FOR
LUNCH AND THEY WANT TO DRINK JAPANESE TEA SAYS MASATOSHI YAMAGUCHI
ASSISTANT MARKETING MANAGER IN THE FOOD AND BEVERAGE DIVISION AT SUNTORY
LTD NATIONWIDE CANNED VERSIONS OF THE TRADITIONAL BEVERAGE ARE BOOMING
LAST YEAR'S SALES WERE UP 45 ANALYSTS ESTIMATE

SUNTORY WHICH INCREASED ITS MARKET SHARE 10 IN 1993 TRIES TO CAPTURE THE
JAPANESE FEELING OF THE DRINK WITH ITS PACKAGING MR YAMAGUCHI SAYS THE
PRODUCT COMES IN A PINEGREEN CAN THAT DISPLAYS THE CHARACTER FOR TEA

EVEN THE LANGUAGE USED IN ADS IS TURNING BACK TO JAPANESE A FEW YEARS AGO
ENGLISH WORDS LIKE TRENDY AND EXCITING WERE USED FREQUENTLY TO CONNOTE
FRESHNESS AND PIZAZZ NOW MARKETERS SAY PEOPLE WANT WORDS LIKE VALUE
NATURAL AND PURE USUALLY WRITTEN IN JAPANESE RATHER THAN ENGLISH

NOWHERE IS THE BACK TO JAPAN MOOD MORE APPARENT THAN IN FASHION LAST SUMMER
THERE WAS A SURGE OF MEDIA INTEREST IN YUKATA COOL ROBES OF PRINTED COTTON
DONNED AFTER THE EVENING BATH

KIMONOS TOO ARE BACK IN STYLE THE OCTOBER ISSUE OF HANAKO HAD 18 PAGES OF
INFORMATION ON KIMONOS KYO KANE CORP A KYOTOBASED CLOTHING RETAILER IN
JANUARY INTRODUCED WESTERNSTYLE WEDDING DRESSES MADE FROM THE MATERIAL OF
THE OBI THE INTRICATELY EMBROIDERED SASH WORN WITH KIMONOS THE DRESSES
WHICH APPEARED ON NATIONAL TELEVISION HAVE PROVEN POPULAR IN THEIR
THREESTORE TRIAL RUN IN KYOTO SAID SPOKESWOMAN JUNKO TSUJI AND TWO
JAPANESE RETAILERS RECENTLY STARTED A JOINT VENTURE THAT SELLS AN
EASYTOWEAR LOWPRICED KIMONO MEANT TO LURE THOSE WHO PREFER THE EASE OF
WESTERN STYLES

SOME AMERICAN AND EUROPEAN MULTINATIONALS ARE TRYING HARD TO CATCH THE
JAPANESE WAVE PEOPLE ARE TOO USED TO THE INTERNATIONAL APPROACH SAYS
MICHIKO EGAWA CORPORATE RELATIONS MANAGER FOR PHILIP MORRIS KK IN TOKYO

THE COMPANY MADE ITS NAME HERE WITH ROLLICKING ADS FILLED WITH ADVENTURE
REMINISCENT OF JAMES BOND MOVIES BUT TO INTRODUCE ITS LOWTAR CIGARETTE TO
THE JAPANESE MARKET IT HAS ADOPTED A NEW ALMOST ZEN ANGLE IN A BROADLY
DISTRIBUTED POSTER FOR EXAMPLE A HAND HOLDS UP A SINGLE FINGER TO DRIVE
HOME THE UNIQUENESS OF THE PRODUCT THE MESSAGE MOREOVER APPEARS ONLY IN
JAPANESE UNLIKE EARLIER COMMERCIALS

FOREIGN MODELS HAVE BEEN HARD HIT BY THE SWITCH TO JAPANESE METAPHORS AND
FACES A FEW YEARS AGO THERE WERE ENOUGH JOBS TO GO AROUND FOR EVERYONE
RECALLS SANDRA STIEIR NOW THE 23YEAROLD CANADIAN SAYS THE PICKINGS ARE
FAR SLIMMER COMPANIES ARE USING A LOT FEWER FOREIGNERS OVERALL AND PAY
HAS GONE DOWN BY ABOUT HALF MS STIEIR WILL BE LEAVING SHORTLY TO WORK IN
TAIWAN WHERE SHE SAYS THE FOREIGN MODEL MARKET IS BETTER

SOME PEOPLE BELIEVE THE TREND MAY BE A HARBINGER OF A NEW BURST OF
PATRIOTISM VISITS TO LOCAL SHRINES IN TOKYO REACHED RECORDS THIS NEW YEAR
ACCORDING TO TELEVISION REPORTS THOUGH THE RECESSION TOOK A BITE OUT OF
CONTRIBUTIONS AND NOVELIST KUNIO TSUJI IN A RECENT ESSAY IN THE YOMIURI
SHIMBUN SAYS THAT WITH THE RECESSION FORCING PEOPLE TO REEXAMINE THEIR
LIVES AND ASPIRATIONS THE JAPANESE HAVE COME TO EXPERIENCE THE
ANTAGONISTIC NATURE OF CULTURAL CONFLICT FOR THE FIRST TIME AS A RESULT
HE SAYS A GROWING NUMBER OF YOUNG PEOPLE ARE DEVELOPING A STRONG INTEREST
IN JAPANESE TRADITIONS

MARIKO FUJIWARA OF THE RESEARCH GROUP HAKUHODO INSTITUTE OF LIFE AND LIVING
DOUBTS THE MARKETING FAD WILL STOKE THE KIND OF POLITICAL NATIONALISM THAT
ACCOMPANIED JAPAN'S GRIM SOULSEARCHING IN THE 1930S

FOR SOME PEOPLE THIS IS A VERY GOOD OPPORTUNITY TO REASSESS SHE SAYS
BUT AMONG MANY IT'S SIMPLY A DEPRESSION THEY CAN'T AFFORD WHAT THEY
THOUGHT THEY COULD 9402230006 940223 BUSINESS BRIEF PHARMOR SEEKS
AID OF COURT'S EXAMINER TO RECOVER MONEY

YOUNGSTOWN OHIO PHARMOR INC SAID IN A COURT FILING THAT IT WANTS TO
MEET WITH A COURTAPPOINTED EXAMINER TO DISCUSS THE POSSIBILITY OF
RECOVERING MONEY FROM FORMER EXECUTIVES AND DIRECTORS

THE RETAILER WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN 1992 AFTER
ALLEGING IT WAS THE TARGET OF A FRAUD AND EMBEZZLEMENT SCHEME BY FORMER
EXECUTIVES SAID THAT BASED ON A REPORT BY EXAMINER JAY ALIX IT HAS
CONCLUDED THAT CERTAIN TRANSACTIONS APPEAR TO GIVE RISE TO CAUSES OF ACTION
AGAINST PERSONS OR ENTITIES THAT ARE FINANCIALLY RESPONSIBLE

THE DEEPDISCOUNT RETAILER SAID IT HOPES TO MEET WITH MR ALIX AND HIS STAFF
TO DISCUSS THEIR FINDINGS DATABASE AND ANY RELEVANT EVIDENCE THEY UNCOVERED
DURING THEIR INVESTIGATION ON MARCH 1 PHARMOR MANAGEMENT WILL MEET WITH
CREDITORS TO DISCUSS AMONG OTHER THINGS COURT ACTIONS TO RECOVER THE
MONEY

A PHARMOR SPOKESMAN WOULDN'T ELABORATE ON SPECIFIC TRANSACTIONS UNDER
STUDY EARLIER THIS MONTH STUART HERTZBERG AN ATTORNEY FOR THE UNSECURED
CREDITORS' COMMITTEE SAID HE WOULD CONSULT WITH OTHER CREDITORS AND
PHARMOR MANAGEMENT ABOUT TRYING TO RECOVER ABOUT 75 MILLION THAT SEVERAL
DIRECTORS AND SHAREHOLDERS RECEIVED IN A 1991 STOCK BUYBACK

MR HERTZBERG ALSO SAID THERE MAY BE PROFITS TO RECOVER FROM SHAREHOLDERS
INCLUDING PHARMOR CHAIRMAN DAVID SHAPIRA AND SEVERAL DIRECTORS ON
STOCKOPTION TRANSACTIONS THAT THE EXAMINER'S REPORT SAID OCCURRED AFTER THE
OPTIONS EXPIRED MR SHAPIRA HAS SAID THE BOARD WAS TOLD BY ITS OUTSIDE
ACCOUNTANTS AND ATTORNEYS THAT IT WAS PROPER TO EXERCISE THE OPTIONS AFTER
THEY HAD EXPIRED 9402230005 940223 SMALL STOCK FOCUS STOCKS CLIMB AS
INVESTORS SHRUG OFF CONCERNS ABOUT GREENSPAN TESTIMONY  BY CAITLIN
MOLLISON SPECIAL TO THE WALL STREET JOURNAL

NEW YORK AFTER SOME EARLY MARKET CHOPPINESS SMALLCOMPANY STOCK
INVESTORS DECIDED FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S CONGRESSIONAL
TESTIMONY WAS HARMLESS AND BID PRICES HIGHER

MR GREENSPAN SUGGESTED THAT SHORTTERM INTEREST RATES WILL RISE AGAIN BUT
HE WASN'T SPECIFIC ABOUT WHEN MARKET PLAYERS SHOWED CAUTION AS THE
TESTIMONY BEGAN BUT THEY LATER TOSSED ASIDE THEIR CONCERNS

THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION
STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES JUMPED 1
OR 038 TO 26505 AFTER LOSING GROUND IN THE PREVIOUS TWO SESSIONS

THE NASDAQ COMPOSITE INDEX CLIMBED 230 OR 029 TO 79115 DECLINING
NASDAQ ISSUES OUTPACED ADVANCERS 1599 TO 1404 ON LIGHT NASDAQ NATIONAL
MARKET VOLUME OF 228876600 SHARES AND TOTAL VOLUME OF 263269000 ON
FRIDAY NATIONAL MARKET VOLUME WAS 249412200 SHARES WHILE OVERALL
TURNOVER STOOD AT 300633500

THE STOCK AND BOND MARKETS WERE CLOSED MONDAY IN OBSERVANCE OF PRESIDENTS
DAY

A MODEST REBOUND IN THE BOND MARKET ALSO HELPED PAVE THE WAY FOR GAINS IN
THE SMALLERSTOCK GROUP THE TREASURY'S LONG BOND JUMPED 5/16 POINT

BONDS STOPPED SLIDING AFTER GREENSPAN TOLD CONGRESS THAT HE SEES INFLATION
RISING ONLY A LITTLE THIS YEAR

TRADERS SAID THE REACTION ON THE BIG BOARD ALSO WORKED AS A POSITIVE FOR THE
BROADER MARKET INCLUDING SMALLCAP STOCKS THE DOW JONES INDUSTRIAL AVERAGE
SOARED MORE THAN 24 POINTS AND THE DOW JONES UTILITY AVERAGE SURGED 323 TO
21177 A SLIDE IN THE UTILITY INDEX RECENTLY HAS WORRIED MARKET WATCHERS
WHO SAY A POOR PERFORMANCE BY THE BAROMETER PORTENDS AN OVERALL MARKET
CORRECTION

AMONG SEMICONDUCTOR ISSUES KLA INSTRUMENTS SAN JOSE CALIF CLIMBED 1 3/4
TO 37 3/4 BOLT BERANEK & NEWMAN CAMBRIDGE MASS ADDED 5/8 TO 16 3/8 ON
THE BIG BOARD AND NOVELLUS SYSTEMS ALSO OF SAN JOSE ROSE 1 1/2 TO 43 1/4

ENERGY COMPANIES WERE IN THE SPOTLIGHT FOR INSTANCE ATWOOD OCEANICS OF
HOUSTON JUMPED 2 TO 13 1/2 ACCORDING TO THIS WEEK'S ISSUE OF BARRON'S THE
OIL AND GAS EXPLORATION AND DEVELOPMENT COMPANY OFFERS A WAY TO BUY DRILLING
ASSETS AT A DISCOUNT AND GET A FREE RIDE ON ANY TIGHTENING OF DAILY RIG
RATES

BENTON OIL & GAS OXNARD CALIF JUMPED 1 1/16 TO 5 3/4 FOLLOWING AN
UPGRADE TO STRONG BUY FROM BUY BY KIDDER PEABODY & CO ANALYST BERNARD
PICCHI ALSO BENTON SAID TODAY IT HAS ACQUIRED AN ADDITIONAL 30 STAKE IN
BENTONVINCCLER ITS VENEZUELAN VENTURE FOR 13 MILLION AND 200000 COMMON
SHARES

SHARES OF CASTLE ENERGY DROPPED 1 5/8 TO 8 7/8 AFTER GERMAN SHAREHOLDER
METALLGESELLSCHAFT SAID IT MIGHT SELL ITS 40 STAKE IN THE BLUE BELL PA
OIL AND GAS REFINER

ON THE EARNINGS FRONT PURE TECH INTERNATIONAL SOMERSET NJ PLUNGED 2
1/4 TO 8 THE RECYCLING CONCERN REPORTED A FISCAL SECONDQUARTER LOSS OF 48
CENTS A DILUTED SHARE ON RESTRUCTURING CHARGES COMPARED WITH NET INCOME
FROM CONTINUING OPERATIONS OF 10 CENTS A YEAR EARLIER

ALLEN GROUP GAVE UP 1 TO 15 3/4 ON THE NEW YORK STOCK EXCHANGE THE
BEACHWOOD OHIO ANTENNA MANUFACTURER'S FOURTHQUARTER EARNINGS CAME IN AT
32 CENTS A SHARE BELOW ANALYSTS' ESTIMATES OF 34 CENTS IN THE YEAREARLIER
PERIOD ALLEN POSTED NET INCOME FROM CONTINUING OPERATIONS OF 30 CENTS

LCI INTERNATIONAL MCLEAN VA BOUNCED 4 1/8 HIGHER TO 40 7/8 AFTER
REPORTING THAT ITS FOURTHQUARTER LOSS NARROWED TO 82 CENTS A SHARE WITH
CHARGES FROM 378 A YEAR EARLIER

IN ADDITION IT WAS REPORTED YESTERDAY THAT LCI HAS AGREED TO PROVIDE UNITED
CONSUMER FINANCIAL SERVICES WITH DOMESTIC AND INTERNATIONAL VOICE AND DATA
TELECOMMUNICATIONS SERVICES AS PART OF A THREEYEAR CONTRACT VALUED AT 7
MILLION

EA ENGINEERING SCIENCE AND TECHNOLOGY OF HUNT VALLEY MD SURGED 5 3/4 TO
26 1/4 AFTER IT SIGNED A CONTRACT VALUED AT AS MUCH AS 75 MILLION WITH THE
BALTIMORE DISTRICT US ARMY CORPS OF ENGINEERS TO PROVIDE HAZARDOUS
TOXIC AND RADIOACTIVEWASTE ENVIRONMENTALENGINEERING SERVICES

SOUTH OF THE BORDER AMERICAN DEPOSITARY RECEIPTS OF SOME MEXICAN COMPANIES
TRADED ON THE NEW YORK STOCK EXCHANGE FELL ON NEWS THAT THE GOVERNMENT SAID
1993 GROWTH WAS A DISAPPOINTING 04 OFF FROM GOVERNMENT ESTIMATES OF 11
EMPRESAS LA MODERNA A MEXICAN CIGARETTE PRODUCER AND DISTRIBUTOR FELL 1
5/8 TO 29 7/8 BUFETE INDUSTRIAL A CONSTRUCTION COMPANY DROPPED 1 3/4 TO
48 3/4 AND GRUPO MEXICANO DE DESARROLLO ALSO A CONSTRUCTION COMPANY GAVE
UP 1 1/8 TO 20 7/8

BRAZILIAN FUNDS MEANWHILE GOT A BOOST AFTER THE SAO PAOLO STOCK EXCHANGE
POSTED ITS BIGGEST RALLY OF THE YEAR WITH CONFIDENCE RENEWED THAT THE
GOVERNMENT'S ECONOMIC PLAN WILL PASS THROUGH CONGRESS BRAZIL FUND JUMPED 2
1/4 TO 30 3/4 AND BRAZILIAN EQUITY FUND GAINED 1 3/4 TO 24 1/4 BOTH ON THE
BIG BOARD

THE LACK OF ANY EXTRAORDINARY COMMENTS ONE WAY OR ANOTHER FROM GREENSPAN
REALLY HELPED US SAID LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT
SOUNDVIEW FINANCIAL GROUP AFTER SOME EARLY INDECISION WE GAINED STRENGTH
AS HE SIGNALED THE UPTICK IN RATES WOULDN'T OCCUR RIGHT AWAY

PETER COOLIDGE A SENIOR EQUITY TRADER AT KIDDER PEABODY SAID THAT AFTER
TWO DOWN SESSIONS SMALLCAP STOCKS WERE DUE FOR A BOUNCE BUT THE MARKET
WAS A LITTLE BIT NERVOUS AND NOBODY WANTED TO COMMIT THEMSELVES UNTIL THEY
COULD DETERMINE WHAT GREENSPAN'S COMMENTS AND HIS ACTIONS WOULD MEAN

ALTHOUGH MR COOLIDGE SAID YESTERDAY'S ACTION DID NOT VALIDATE THE
CORRECTION THEORY THAT MANY ANALYSTS HAVE PUT FORTH IN THE PAST FEW WEEKS
ALL IN ALL THE SESSION DOESN'T HAVE MUCH EFFECT BECAUSE THERE WEREN'T A LOT
OF PLAYERS AROUND 9402230004 940223 LETTERS TO THE EDITOR  ZALE
BANKRUPTCY CASE CLIMBING OUT OF CHAOS

BECAUSE YOU HAVE HAD SUCH BALANCED AND ACCURATE REPORTING OF THE ZALE
BANKRUPTCY CASES I WAS SURPRISED THAT YOU PERMITTED MARK DICKSTEIN A
PURCHASER AT SHARP DISCOUNTS OF CLAIMS AGAINST FINANCIALLY DISTRESSED
ENTITIES TO EXTEMPORIZE AND MISCHARACTERIZE THE FACTS OF THAT CASE IN ORDER
TO SUPPORT WHAT APPEARS TO BE A TACTICAL OBJECTIVE OF HIS AS A CREDITOR IN
THE MACY'S CASE MACY'S DEBTOR PARADISE EDITORIAL PAGE JAN 19 AS
ZALE'S LEAD BANKRUPTCY COUNSEL I WAS IN A GOOD POSITION TO OBSERVE NOT ONLY
THE VALUE OF THE DEBTOR'S EXCLUSIVITY PERIOD WHICH WAS EXTENDED BY THE
PRESIDING BANKRUPTCY JUDGE IN THAT CASE BUT ALSO THE COSTS AND
COMPLICATIONS THAT CERTAIN CREDITORS CAN VISIT UPON A CHAPTER 11
REORGANIZATION AS LEVERAGE TO ATTEMPT TO SATISFY THEIR OWN GOALS

THE ZALE CHAPTER 11 CASES WERE BEGUN INVOLUNTARILY AGAINST THE COMPANY ON
JAN 1 1992 THEY WERE NOT PREARRANGED IN ANY SENSE THE US TRUSTEE
APPOINTED FIVE CREDITOR COMMITTEES WHICH IMMEDIATELY UNDERTOOK A PATTERN OF
LITIGATION AND BELLICOSITY ON EVERY CONCEIVABLE ISSUE RELATING TO THE
OPERATION OF THIS BILLIONDOLLAR RETAILER WITH 10000 EMPLOYEES IT
CERTAINLY WAS CHAOTIC NEVERTHELESS WITHIN FOUR MONTHS OF THE FILING OF
THE INVOLUNTARY PETITIONS THE DEBTOR NOT THE CREDITOR COMMITTEES PROPOSED
A SOLUTION TO THE CHAOS A FASTTRACK SCHEDULE FOR THE RESOLUTION OF THE
CASE THIS INCLUDED SEQUENCED PRESENTATIONS OF CONTESTED ISSUES FORMULATION
OF ECONOMIC PROPOSALS DEADLINES FOR THE PREPARATION OF PLANS OF
REORGANIZATION AND PLENARY MEETINGS OF ALL CREDITOR CONSTITUENCIES WITH THE
GOAL OF A POSSIBLE RESOLUTION OF THE CHAPTER 11 CASE BY SEPTEMBER 1992

EVERY CREDITOR CONSTITUENCY EXCEPT THE TRADE CREDITORS OPPOSED ZALE'S
PROPOSAL AS UNREALISTIC FORTUNATELY THE BANKRUPTCY JUDGE EMBRACED IT
INCLUDING THE CONTINUATION OF EXCLUSIVITY INDEED THE DEBTORS' EXCLUSIVITY
PERIOD WAS EXTENDED BY THE BANKRUPTCY COURT UNTIL ZALE SUPPORTED EVENTUALLY
BY SEVERAL CREDITOR CONSTITUENCIES GAVE ANTAGONISTIC GROUPS THE OPTION OF
FILING COMPETING PLANS OF REORGANIZATION FOR SOME OR ALL OF THE ZALE
COMPANIES IN CHAPTER 11 ULTIMATELY WITHIN THE TIME FRAME ORIGINALLY
PROPOSED BY ZALE EVERY CREDITOR CONSTITUENCY EXCEPT MR DICKSTEIN'S WAS
IN ACCORD FOR A CONSENSUAL PLAN

MR DICKSTEIN WAS THE CHAIRPERSON OF THE ONE HOLDOUT CREDITORS COMMITTEE
CONSTANTLY THREATENING MASSIVE LITIGATION OF ALL SORTS AGAINST ALL PARTIES
THAT COMMITTEE EXTENDED THE LIFE OF THE CHAPTER 11 CASE BY MANY MONTHS AND
COST THE ESTATE MILLIONS OF DOLLARS IN PROFESSIONAL FEES AND TENS OF
MILLIONS IN AGGRAVATION PERHAPS THE SORT OF CHAOS THAT MR DICKSTEIN
MEANT IN HIS ACKNOWLEDGMENT INDEED AN INVESTMENT BANKER WHO WAS ADVISING
MR DICKSTEIN'S COMMITTEE DARED TO THREATEN REPRESENTATIVES OF ZALE AND THE
CREDITORS THAT SUCH ADVISER WOULD GET WHAT HE WANTED OR BLOW UP THE
DEBTOR

THE PRESIDING BANKRUPTCY JUDGE COMMENTED ON THE RECORD THAT MR DICKSTEIN'S
CONSTITUENTS WOULD BE INVITED TO CONSIDER THE ALTERNATIVES OF EITHER A
CONSENSUS PLAN ON THE FORMAT ACHIEVED BY ZALE WITH THE OTHER CREDITOR
CONSTITUENCIES OR YEARS OF LITIGATION WITH THE ATTENDANT UNCERTAINTIES AND
COSTS

YES THE ZALE CASE WAS RELATIVELY FAST HOWEVER I FAIL TO SEE HOW AN
OPPONENT OF CASE RESOLUTION IN THE ZALE REORGANIZATION COULD POSSIBLY
LECTURE THOSE INVOLVED IN OTHER CASES THE DEBTORS' EXCLUSIVITY PERIOD WAS A
VERY HELPFUL PART OF CASE MANAGEMENT IN ZALE AND IT LASTED AS LONG AS IT
WAS NECESSARY TO ASSIST IN THE REHABILITATION PROCESS WITHOUT THE
EXCLUSIVITY PERIOD WE COULD NEVER HAVE CLIMBED OUT OF THE CHAOS AT THE
START OF THE CASE OR HAVE ACHIEVED A CONSENSUAL PLAN 9402230003 940223
THORN EMI SAYS ITS INQUIRY DISPUTES JOURNAL'S CHARGES ABOUT RENTACENTER
  BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL

THORN EMI PLC SAID AN INDEPENDENT INVESTIGATION IT COMMISSIONED FOUND THAT
KEY ALLEGATIONS MADE IN A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL
CONCERNING ITS RENTACENTER UNIT WERE EITHER INCORRECT OR MISLEADING

THORN EMI BASED IN LONDON DIDN'T RELEASE A COPY OF THE REPORT BUT PROVIDED
WHAT IT DESCRIBED AS A SUMMARY OF THE FINDINGS ABOUT THE POLICIES AND
PRACTICES OF RENTACENTER WHICH IS BASED IN WICHITA KAN

THE INVESTIGATION CONDUCTED FOR THORN BY FORMER US SEN WARREN RUDMAN
FOUND THAT RENTACENTER CHARGES A REASONABLE PRICE FOR ITS RENTTOOWN
SERVICE BASED ON THE COSTS OF PROVIDING THE SERVICE THORN SAID THE COMPANY
ALSO SAID THE REPORT FOUND THAT MOST RENTACENTER CUSTOMERS UNDERSTAND THE
RENTTOOWN TRANSACTION AND ARE SATISFIED WITH THEIR TREATMENT BY COMPANY
EMPLOYEES

PAUL STEIGER THE MANAGING EDITOR OF THE JOURNAL RESPONDED TODAY'S
RELEASE FROM THORN EMI DOES NOT CONTRADICT ANY SPECIFIC FACTS REPORTED IN
THE JOURNAL ARTICLE OF LAST SEPTEMBER WE CONTINUE TO STAND BY OUR STORY WE
WILL OF COURSE EXAMINE THE FULL RUDMAN REPORT WHEN IT IS MADE AVAILABLE TO
US

IN AN INTERVIEW SIR COLIN SOUTHGATE CHAIRMAN OF THORN EMI SAID
RENTACENTER WAS VINDICATED ON EVERY SINGLE POINT BY THE INVESTIGATION

THE RUDMAN PROBE FOLLOWED A SEPT 22 JOURNAL ARTICLE THAT DESCRIBED
HIGHPRESSURE SALES TACTICS AND ABUSIVE COLLECTIONS PROCEDURES AT
RENTACENTER THE NATION'S LARGEST RENTTOOWN COMPANY THE COMPANY RENTS
APPLIANCES FURNITURE ELECTRONICS AND OTHER HOUSEHOLD PRODUCTS THE
INDUSTRY IS KNOWN AS RENTTOOWN BECAUSE RENTERS WHO MAKE EVERY WEEKLY
PAYMENT USUALLY OVER 78 WEEKS BECOME OWNERS

THE ARTICLE ASSERTED THAT SOME EMPLOYEES ENCOURAGED UNSOPHISTICATED
CUSTOMERS TO RENT MORE MERCHANDISE THAN THEY COULD AFFORD THE ARTICLE ALSO
REPORTED THAT REPOSSESSION TACTICS USED BY SOME RENTACENTER EMPLOYEES
INCLUDED ACCEPTING SEXUAL FAVORS IN EXCHANGE FOR NOT REPOSSESSING FURNITURE
 SOCALLED COUCH PAYMENTS AND IN SPECIFIC INSTANCES ENLISTING THE HELP
OF A HELL'S ANGELS GANG AND PICKING AN APARTMENT LOCK WITH A CREDIT CARD TO
GAIN ACCESS TO A LATE PAYER'S GOODS

THE SUMMARY OF THE THORN REPORT SAID THAT RENTACENTER EMPLOYEES GENERALLY
FOLLOW COMPANY POLICIES AND PROCEDURES THAT PERTAIN TO THE FAIR AND HONEST
TREATMENT OF CUSTOMERS EVIDENCE THAT EMPLOYEES VIOLATE INTERNAL OPERATING
PROCEDURES HAVE IN THE MAIN BEEN ISOLATED OR SPORADIC OCCURRENCES AND ARE
UNCHARACTERISTIC OF RENTACENTER'S USUAL PRACTICES THORN SAID THE REPORT
CONCLUDED

IN AN INTERVIEW MR RUDMAN A PARTNER IN THE WASHINGTON OFFICE OF PAUL
WEISS RIFKIND WHARTON & GARRISON SAID THAT IN THE FINAL REPORT HE
SUGGESTS SOME CHANGES IN CERTAIN RENTACENTER OPERATING PROCEDURES AMONG
THE AREAS THAT MAY NEED IMPROVEMENT HE SAID ARE DISTINGUISHING BETWEEN NEW
AND USED MERCHANDISE TRAINING EMPLOYEES FURTHER IN EXPLAINING THE RIGHTS OF
CUSTOMERS UNDER A LIABILITYPROTECTION PLAN THE COMPANY OFFERS AND
EMPHASIZING THAT EMPLOYEES MAY NOT ENTER CUSTOMERS' HOMES TO REPOSSESS
MERCHANDISE WHEN THE CUSTOMERS AREN'T PRESENT

WE FOUND A VERY SMALL AMOUNT OF EVIDENCE OF THAT ENTRY INTO HOMES AND WE
FELT THAT NONE WAS ACCEPTABLE MR RUDMAN SAID

MR RUDMAN SAID HIS TEAM WAS UNABLE TO VERIFY SPECIFIC INCIDENTS OF COUCH
PAYMENTS THERE IS A LOT OF RICH FOLKLORE HE SAID ADDING THAT IN A
COMPANY OF 7000 EMPLOYEES WHETHER IT BE A RENTACENTER A NEWSPAPER OR A
LAW FIRM I SUSPECT THOSE THINGS HAPPEN THE QUESTION IS DO THEY HAPPEN IN
A PERVASIVE WAY 9402230002 940223 CORPORATE FOCUS DIGITAL'S NEW CHIP
MAY BE TOO FAR AHEAD OF ITS TIME  POWERFUL ALPHA CAN CRUNCH NUMBERS 
QUICKLY BUT SALES REMAIN SLUGGISH  BY JOHN R WILKE STAFF
REPORTER OF THE WALL STREET JOURNAL

HUDSON MASS IT IS DUBBED SILICON MOUNTAIN A SLEEK NEW CHIP PLANT
RISING FROM A FORMER APPLE ORCHARD ON A HILL ABOVE THIS OLD MILL TOWN FOR
BETTER OR WORSE IT IS DIGITAL EQUIPMENT CORP'S FUTURE

DIGITAL WILL PRODUCE ITS POWERFUL ALPHA CHIP IN THE 425 MILLION PLANT THE
TINY SILICON ENGINE THAT IS SUPPOSED TO CARRY THE COMPUTER MAKER INTO THE
NEXT CENTURY FROM THE GUINNESS BOOK OF RECORDS TO THE RESPECTED INDUSTRY
JOURNAL MICROPROCESSOR REPORT DIGITAL'S ALPHA HAS BEEN HAILED THE WORLD'S
FASTEST COMPUTER CHIP

UNFORTUNATELY THE FIRST VERSIONS OF THE CHIP AREN'T SELLING AS FAST AS THEY
CAN CRUNCH NUMBERS ALPHA SYSTEM SALES ROSE TO 500 MILLION IN 1993 THE
FIRST FULL YEAR OF SHIPMENTS BUT SALES OF THE COMPANY'S MAINSTAY VAX LINE
PLUNGED BY ALMOST 1 BILLION IN THE SAME PERIOD ESTIMATES BARRY F WILLMAN
AN ANALYST AT GOLDMAN SACHS & CO WHILE SOARING PERSONAL COMPUTER SALES HAVE
HELPED THEY AREN'T YET LARGE ENOUGH TO PICK UP THE SLACK

DIGITAL BASED IN MAYNARD MASS HOPED TO BE A STEP AHEAD WITH ALPHA BUT
IT MAY HAVE LEFT ITS MARKET BEHIND AS ONE DIGITAL SALESMEN SAYS MY
CUSTOMERS ARE ASKING TELL ME AGAIN WHY I NEED A CAR THAT GOES 500 MILES AN
HOUR' ALPHA HE SAYS IS GREAT FOR HIGHPOWERED TASKS LIKE WEATHER
FORECASTING OR SEISMIC MODELING AND I'VE ALREADY CALLED ON EVERY SEISMIC
MODELER IN MY TERRITORY IT TOOK ALL OF TUESDAY MORNING

THE ALPHA DESIGN IS INDEED A GENERATION AHEAD OF MOST CHIPS A 64BIT DEVICE
OFFERING SUPERCOMPUTERCLASS PERFORMANCE THE STANDARD TODAY IS A 32BIT
DESIGN AND EVEN THAT COMPUTING CAPACITY ISN'T YET FULLY UTILIZED DIGITAL
MADE AN EXPENSIVE BET THAT THE WORLD NEEDS A 64BIT PROCESSOR AND IT
WILL BUT NOT FOR ANOTHER THREE YEARS SAYS STEVEN MILUNOVICH AN ANALYST
AT MORGAN STANLEY & CO

ROBERT B PALMER WHO HAS BEEN DIGITAL'S CHIEF EXECUTIVE FOR ONLY 15 MONTHS
IS DIGGING IN FOR A LONG SIEGE HE'S SLASHED EXPENSES BY 22 IN THE PAST 12
MONTHS AND IS EXPECTED TO CUT AN ADDITIONAL 7300 JOBS OR 92 OF THE WORK
FORCE BY JUNE 30 HOWEVER HE'S BEEN UNABLE TO IGNITE ENOUGH NEW GROWTH AS
DIGITAL'S CONVENTIONAL BUSINESSES CONTRACT IN THE FISCAL SECOND QUARTER
ENDED JAN 1 REVENUE FELL A DIZZYING 12 TO 325 BILLION YIELDING A NET
LOSS OF 72 MILLION OR 53 CENTS A SHARE

THOUGH IT STILL HAS 1 BILLION OF CASH ON HAND AN INTERNAL REVIEW OF
DIGITAL'S FINANCES OBTAINED BY THE WALL STREET JOURNAL SAYS THAT THE COMPANY
WILL SOON NEED AN ADDITIONAL 500 MILLION TO 1 BILLION OF NEW FINANCING
PROBABLY AS PREFERRED STOCK DIGITAL HAS BURNED THROUGH 2 BILLION IN THE
PAST 18 MONTHS AND NOW HAS 1 BILLION OF DEBT ANALYSTS SAY NEW FINANCING
SUGGESTS THAT ANOTHER CHARGE FOR MORE RESTRUCTURING AND NEW LAYOFFS 
MIGHT BE ON THE WAY

A REORGANIZATION MR PALMER PUT INTO EFFECT SHORTLY AFTER TAKING THE REINS
WAS SUPPOSED TO DIVIDE DIGITAL INTO UNITS TIGHTLY FOCUSED ON SPECIFIC
INDUSTRIES SUCH AS BANKING OR HEALTH CARE BUT THE REORGANIZATION WAS
SCRAPPED AFTER A YEAR BECAUSE THE UNITS FELL FAR SHORT OF PRODUCTSALES
GOALS BRINGING EVEN MORE UPHEAVAL TO AN ALREADYSHAKEN SALES FORCE

AT THE SAME TIME POOR FORECASTING AND SUPPLY PROBLEMS PREVENTED ORDERS OF
SOME HOT PRODUCTS FROM SHIPPING IN TIME WE FAILED TO EXECUTE WELL WE RAN
OUT OF POPULAR PRODUCTS AND HAD ORDERS THAT DIDN'T SHIP MR PALMER SAYS
HE ALSO SAYS A SHIFT TOWARD LOWEND PRODUCTS SUCH AS WORKSTATIONS WASN'T
ACCURATELY FORECAST

THE LINCHPIN OF DIGITAL'S ALPHA STRATEGY IS TO OFFER THE CHIP TO OTHER
COMPUTER MAKERS IN ADDITION TO SELLING SYSTEMS ITSELF TO GET POPULAR
SOFTWARE WRITTEN FOR ALPHA BUT AFTER MORE THAN A YEAR ALPHA HASN'T YET WON
OVER MAINSTREAM COMPUTER MAKERS IT'S BEEN HURT BY DELAYS IN BOTH SOFTWARE
OPERATING SYSTEMS THAT CUSTOMERS NEEDED TO USE THE CHIP DIGITAL'S VERSION
OF UNIX FOR ALPHA WHICH WAS SIX MONTHS LATE AND WINDOWS NT FROM MICROSOFT
CORP WHICH WAS ABOUT NINE MONTHS BEHIND SCHEDULE AND HASN'T REALLY TAKEN
OFF YET

THE SLOW ROLLOUT OF WINDOWS NT IS ESPECIALLY WORRISOME THE NT OPERATING
SYSTEM IS CRITICAL TO DIGITAL BECAUSE IT RUNS ON ALPHA CHIPS AS WELL AS
THOSE OF THE MARKET LEADER INTEL CORP THIS ENSURES A BRIDGE BETWEEN ALPHA
AND THE VAST LIBRARY OF SOFTWARE WRITTEN FOR INTELBASED MACHINES A KEY
SELLING POINT FOR ALPHA

MOREOVER SOME ANALYSTS SAY THAT TIES BETWEEN DIGITAL AND MICROSOFT HAVE
BEEN FRAYED IN RECENT MONTHS WILLY SHIH WHO RUNS DIGITAL'S ALPHA PC
EFFORT REJECTS SUCH TALK EVERY RELATIONSHIP HAS ITS UPS AND DOWNS BUT WE
VIEW IT AS A LONGTERM STRATEGIC ALLIANCE

MR SHIH A YOUNG ENGINEER WHO PLAYED A KEY ROLE FOR IBM IN THE POWERPC
ALLIANCE WITH APPLE DEFECTED LAST YEAR TO DIGITAL HE SAYS THAT ALPHA IS
EXTRAORDINARILY WELLPOSITIONED IN RAW TECHNOLOGY AND THAT THE CHIP'S
ABILITY TO RUN MULTIPLE SOFTWARE OPERATING SYSTEMS INCLUDING NT AND UNIX
WILL BE A KEY COMPETITIVE ADVANTAGE IN A SHIFTING WORLD WE DON'T FORCE
PEOPLE TO CHOOSE ONE OR THE OTHER

STILL DIGITAL HAS LOST PRECIOUS TIME AGAINST RIVALS' PRESSING THEIR OWN NEW
CHIPS SUN MICROSYSTEMS INC HEWLETTPACKARD CO SILICON GRAPHICS INC AND
THE APPLEIBMMOTOROLA INC TRIUMVIRATE

TO DATE DIGITAL HAS SIGNED A HANDFUL OF BACKERS INCLUDING CRAY RESEARCH
INC THE BIG SUPERCOMPUTER MAKER AND ITALY'S OLIVETTI WHICH IS PARTOWNED
BY DIGITAL DELL COMPUTER CORP THE PC MAKER IS TESTING ALPHA AND OTHER
NEW CHIPS FOR A LINE OF PLUGIN BOARDS TO SUPERCHARGE FUTURE PRODUCTS THE
COMPANY HASN'T YET DECIDED WHAT TO DO

ERIC HARSLEM A DELL SENIOR VICE PRESIDENT SAYS THAT DIGITAL'S ALPHA HAS
THE BEST TECHNOLOGY BUT ALSO A REAL CHALLENGE BECAUSE OF RISING
COMPETITION FROM BETTERKNOWN RIVALS APPLE AND IBM WHICH ARE PUMPING HUGE
MARKETING RESOURCES INTO THEIR NEW POWERPC CHIP

THIS LEADS TO SKYHIGH FRUSTRATION AT DIGITAL THE SLOWEST ALPHA CHIP IS
FASTER THAN THE FASTEST POWERPC YOU CAN BUY TODAY MR PALMER SAYS
HOWEVER DIGITAL HE SAYS DOESN'T MARKET ITSELF AS WELL AS ITS
COMPETITORS

AT THE SAME TIME DIGITAL'S HUGE BASE OF EXISTING VAX CUSTOMERS ARE UNDER
RENEWED ATTACK BY HEWLETTPACKARD AND SUN SUN'S APPROACH IS PARTICULARLY
MERCILESS PROSPECTIVE BUYERS ARE OFFERED DISCOUNTS WHEN THEY AGREE TO TRADE
IN A VAX THE VAX IS THEN DUMPED AS SCRAP

THE DECLINE OF THE VAX IS HURTING DIGITAL'S SERVICE BUSINESS WHICH IS ABOUT
HALF OF TOTAL REVENUE THE INTERNAL FINANCE REVIEW SAYS AT THE SAME TIME
DIGITAL'S COMPUTERSYSTEMS MANUFACTURING UNIT IS HAVING PROBLEMS WITH
TRANSITION FROM VAX TO ALPHA AND A CONTINGENCY PLAN IS BEING DEVELOPED
TO REPOSITION THE UNIT WITH LOWER SALES AND COSTS VERY LITTLE MARGIN FOR
ERROR IT NOTES

THE REVIEW SAYS THAT FURTHER WORK FORCE REDUCTIONS ARE LIKELY BUT THAT
SPECIFIC GOALS HAVEN'T BEEN SET BEYOND JUNE 30 PENDING THIRD AND
FOURTHQUARTER RESULTS WE'RE RUNNING VERY CLOSE TO BREAKEVEN THE REVIEW
SAYS THOUGH REVENUE IS UNCERTAIN FOR NEXT TWOPLUS QUARTERS

THE REVIEW CONCLUDES THAT DIGITAL WILL STILL BE IN TURNAROUND FOR THE NEXT
TWO OR THREE QUARTERS AND THAT MANAGERS SHOULD FOCUS HEAVILY ON CASH
CONSERVATION THERE IS A CHANCE IT ADDS IF WE KEEP AT Q2 SPENDING
LEVELS THAT WE CAN MAKE A PROFIT THIS FISCAL YEAR

WHILE MR PALMER CONFIRMED MANY OF THESE POINTS IN AN INTERVIEW HE WOULDN'T
MAKE ANY FORECAST THIS IS A LARGE ORGANIZATION THAT WAS IN DEEP TROUBLE
WHEN I STARTED AND WE STILL HAVE A WAY TO GO HE SAYS HE CONCEDES THAT
THE TRANSITION TO ALPHA IS BEHIND WHERE I WANTED IT TO BE BY NOW BUT
CALLS IT A MULTIYEAR PROCESS

BUYERS OF ALPHA SYSTEMS SEEM PLEASED ROBERT STODOLA RESEARCH COMPUTING
MANAGER AT FOX CHASE CANCER CENTER PHILADELPHIA IS USING ALPHA MACHINES TO
HELP BUILD A MAP OF THE HUMAN GENOME UNDER CONTRACT FROM THE NATIONAL
INSTITUTES OF HEALTH HE SAYS THE ALPHA REALLY FLIES AND IS FASTER THAN
ANY WORKSTATION HE'S EVER USED

BUT FOX CHASE ONCE A COMMITTED VAX CUSTOMER NOW LOOKS AT EVERY VENDOR
BEFORE IT BUYS NEW EQUIPMENT THE CANCER CENTER HAS SWITCHED TO STANDARD
SOFTWARE TO AVOID GETTING LOCKED IN TO ONE COMPANY MR STODOLA SAYS NOW
WHEN HE BUYS FROM DIGITAL IT'S SOLELY ON PRICE AND PERFORMANCE

MR PALMER THE DIGITAL CHIEF EXECUTIVE SAYS HE WILL NEED TO SELL FIVE
MILLION CHIPS A YEAR BY 1996 COUNTING ALPHA AND OTHERS TO MAKE HIS
HUGE INVESTMENTS PAY OFF HE SAYS A RECENT CONTRACT WITH ADVANCED MICRO
DEVICES INC UNDER WHICH DIGITAL WILL MAKE TWO MILLION 486CLASS CHIPS A
YEAR ENSURES THAT HE'LL HAVE ENOUGH BUSINESS TO FILL THE CHIP PLANTS 
EVEN IF ALPHA ISN'T THE SUCCESS DIGITAL HOPES

NEVERTHELESS ALPHA'S SLOW START PUTS ENORMOUS PRESSURE ON MR PALMER A
SEMICONDUCTOR ENGINEER WHO CHAMPIONED THE CHIP HE INSISTS HE HAS THE FULL
SUPPORT OF DIGITAL'S BOARD WHICH OUSTED HIS PREDECESSOR DIGITAL COFOUNDER
KENNETH H OLSEN IN 1992 BUT HE ADDS THAT WHEN HE WAS APPOINTED THE
BOARD MAYBE DIDN'T UNDERSTAND THE MAGNITUDE OF THE CHALLENGE AND I DIDN'T
EITHER FRANKLY 9402230001 940223 WHO'S NEWS CATELLUS'S CHAIRMAN 
PLANS TO STEP DOWN TWO DIRECTORS RESIGN

SAN FRANCISCO VERNON B SCHWARTZ SAID HE WILL STEP DOWN AS CHAIRMAN
CHIEF EXECUTIVE OFFICER AND PRESIDENT OF CATELLUS DEVELOPMENT CORP
EFFECTIVE JUNE 30

THE MOVE WAS EXPECTED CATELLUS SAID MR SCHWARTZ WAS RESIGNING TO PURSUE
OTHER OPPORTUNITIES HOWEVER AS REPORTED BOARD MEMBERS AND OTHERS CLOSE TO
THE COMPANY SAY MR SCHWARTZ 42 YEARS OLD WAS ASKED TO DEPART AFTER HIS
STRATEGIES FOR TURNING AROUND THE AILING REALESTATE CONCERN CAME UNDER FIRE
FROM DIRECTORS REPRESENTING THE INTERESTS OF CALPERS CALIFORNIA'S HUGE
STATE EMPLOYEE PENSION PLAN WHICH OWNS 40 OF CATELLUS'S STOCK

CATELLUS SAID ROD F DANMEYER AND RANDALL K ROWE ALSO RESIGNED FROM THE
COMPANY'S BOARD BOTH MEN WERE SAID BY PEOPLE FAMILIAR WITH THE COMPANY TO
HAVE BEEN SUPPORTERS OF MR SCHWARTZ

CATELLUS ONE OF THE NATION'S LARGEST PUBLICLY HELD REALESTATE CONCERNS
HAS BEEN HIT BY THE PROPERTY BUST THE COMPANY HAD A NET LOSS FOR THE NINE
MONTHS ENDED SEPT 30 OF 344 MILLION OR 63 CENTS A SHARE

SEPARATELY CATELLUS SAID IT SECURED A 280 MILLION FIRST MORTGAGE LOAN WITH
PRUDENTIAL INSURANCE CO OF AMERICA THE NEW LOAN REFINANCES A 388 MILLION
FIRST MORTGAGE LOAN THE NEW CREDIT CARRIES LOWER INTEREST RATES THAN THE
PREVIOUS LOAN BUT CATELLUS HAD TO MAKE LARGE PRINCIPAL PAYDOWNS AND PAY
OTHER FEES TO OBTAIN THE NEW FUNDING AS A RESULT OF THOSE COSTS CATELLUS
SAID IT WILL INCUR A 74 MILLION AFTERTAX CHARGE IN ITS FOURTH QUARTER

WORD OF MR SCHWARTZ'S PLANNED DEPARTURE CAME AFTER THE MARKET CLOSED BUT
THE REFINANCING WAS ANNOUNCED BEFORE TRADING ENDED IN COMPOSITE NEW YORK
STOCK EXCHANGE TRADING CATELLUS CLOSED AT 8 UP 625 CENTS 9402230112
940126 LETTERS TO THE EDITOR ETHNIC DIVERSITY AND ACCREDITATION

YOUR DEC 29 EDITORIAL THE DIVERSITY STANDARD GETS MANY THINGS WRONG

 YOU STATE OUR ACCREDITING DOCUMENT SETS FORTH A NEW DIVERSITY STANDARD
IT DOES NOTHING OF THE KIND RATHER IT IS AN EFFORT BY THE ACCREDITING
COMMISSION TO OFFER ASSISTANCE TO MEMBER COLLEGES IN LIVING UP TO STANDARDS
TO WHICH THEY HAVE SUBSCRIBED SINCE 1988

 THE DOCUMENT CLEARLY STATES THAT ACCREDITATION WILL NOT BE DENIED ANY
COLLEGE THAT IS THOUGHTFULLY CONSIDERING THE MATTER OF DIVERSITY IN THE
CONTEXT OF ITS OWN INSTITUTIONAL MISSION AND VALUES

 THE DOCUMENT ADDRESSES PRINCIPALLY MATTERS OF ETHNIC DIVERSITY ALL THREE
OF THESE POINTS HAVE BEEN ABUNDANTLY CLEAR IN ALL DRAFTS OF THE DOCUMENT
CIRCULATED IN THE PAST SIX MONTHS

YOU ASK YOUR READERS TO BELIEVE THAT THE EFFORTS OF OUR ACCREDITING
COMMISSION REGARDING ETHNIC DIVERSITY ARE FOUND WITHIN AN ATMOSPHERE
BLIGHTED BY CENSORSHIP SPEECH CODES QUOTA HIRING AND OTHER SYMPTOMS OF
POLITICAL CORRECTNESS HARDLY OUR DOCUMENT ON DIVERSITY SPECIFICALLY
REMINDS COLLEGES OF THEIR OBLIGATION TO SUPPORT FREEDOM OF INQUIRY AND
EXPRESSION THE DOCUMENT DOES SO BY QUOTING THE FOLLOWING LANGUAGE FROM THE
EXISTING STANDARDS

THOSE WITHIN AN EDUCATIONAL INSTITUTION HAVE AS A FIRST CONCERN
KNOWLEDGE EVIDENCE AND TRUTH THIS CONCERN SHOULD NOT BE UNDERMINED BY
PARTICULAR JUDGMENTS OF INSTITUTIONAL BENEFACTORS OF PUBLIC OR SOCIAL
PRESSURE GROUPS OR OF RELIGIOUS OR POLITICAL GROUPS

SURELY THIS EXCERPT PLACES OUR ACCREDITATION PROCESS SQUARELY ON THE SIDE
OF ACADEMIC FREEDOM

ANOTHER IMPORTANT MATTER YOU DERIDE AS A SUDDENLY DISCOVERED DOGMA THE
IDEA THAT DIVERSITY AND EDUCATIONAL QUALITY ARE LINKED SURELY THIS IS NOT
DOGMA OR EVIDENCE OF ZEALOTRY AS YOU SUGGEST BUT A COMPELLING CONDITION
OF AMERICA TODAY AND TOMORROW GIVEN OUR ETHNICALLY DIVERSE SOCIETY WHAT
WOULD YOU SAY OF THE QUALITY OF AN EDUCATION THAT PROVIDED NO FAMILIARITY
WITH THE WAYS AND HISTORIES OF THE GROUPS TO WHICH FELLOW STUDENTS CITIZENS
AND COWORKERS WILL BELONG WE SAY THAT WOULD REPRESENT A SERIOUS GAP IN
EDUCATIONAL QUALITY AND ULTIMATELY COMPROMISE AMERICA'S FUTURE SEE RELATED
LETTER THOSE VIRTUES COMMON TO ALL PEOPLES WSJ FEB 23 1994
9401260103 YY94 MM02 9402230083 940119 MACY'S DEBTOR PARADISE  
BY MARK DICKSTEIN

THE RECENT PURCHASE OF ALMOST 450 MILLION OF RH MACY & CO'S DEBT BY
RIVAL FEDERATED DEPARTMENT STORES HAS SET OFF SPECULATION ABOUT A MERGER
WHEN MACY'S EMERGES FROM BANKRUPTCY MACY'S CHAIRMAN MYRON ULLMAN HAS
ALREADY SAID THAT HE IS NOT INTERESTED IN A MERGER WITH FEDERATED OR
PRESUMABLY WITH ANYONE ELSE IN THE MEANTIME AFTER TWO YEARS OF BANKRUPTCY
MACY'S HAS YET TO PROPOSE ANY PLAN FOR REORGANIZATION

THIS SITUATION BRINGS TO THE FOREFRONT THE BIGGEST FLAW IN OUR BANKRUPTCY
SYSTEM MANY COURTS ARE ALL TOO WILLING TO GIVE THE BANKRUPT COMPANY THE
ABILITY TO MONOPOLIZE THE RIGHT TO PROPOSE A PLAN OF REORGANIZATION SO LONG
AS THE COMPANY HAS THIS MONOPOLY NO ONE EXCEPT THE DEBTOR NO CREDITOR
SHAREHOLDER OR ANYONE ELSE CAN PROPOSE A PLAN AND GET THE COMPANY OUT OF
CHAPTER 11

ALTHOUGH THE BANKRUPTCY CODE GIVES THE COMPANY THIS REORGANIZATION MONOPOLY
FOR ONLY 120 DAYS THE BANKRUPTCY COURT HAS THE ABILITY TO EXTEND THIS
EXCLUSIVE PERIOD OR EXCLUSIVITY INDEFINITELY SUCH EXTENSIONS HAVE
BEEN ROUTINELY GRANTED TO MACY'S

PERPETUAL EXTENSIONS OF EXCLUSIVITY MAKE SENSE PRIMARILY IN THOSE HIGHLY
UNUSUAL SITUATIONS WHERE THE DEBTOR IS ENMESHED IN LITIGATION THAT REQUIRES
RESOLUTION BEFORE THE DEBTOR CAN BEGIN TO REORGANIZE ITS AFFAIRS IN RECENT
YEARS TWO COMPANIES INVOLVED IN THIS TYPE OF CASE WERE MANVILLE CORP
WHICH FACED BILLIONS OF DOLLARS IN JUDGMENTS FROM PARTIES HARMED BY
ASBESTOS AND LTV WHICH FACED A MULTIBILLIONDOLLAR PENSION BENEFIT
GUARANTY CORP CLAIM IN BOTH MANVILLE AND LTV MOST OBSERVERS RECOGNIZED
THAT NO PLAN OF REORGANIZATION COULD BE CONFIRMED WITHOUT THE SUPPORT OF THE
LITIGANTS SO PERPETUAL EXTENSIONS OF EXCLUSIVITY MADE SENSE

BY FAR THE MORE COMMON OCCURRENCE IS A SITUATION LIKE MACY'S MACY'S IS
TYPICAL OF MOST RECENT BANKRUPTCIES IN THAT ALTHOUGH IT MAY HAVE BEEN
UNDERPERFORMING ITS COMPETITORS THE PRIMARY CAUSE OF ITS FILING FOR
BANKRUPTCY WAS THAT IT SIMPLY HAD TOO MUCH DEBT RELATIVE TO ITS ABILITY TO
SERVICE ITS DEBT

THE ARGUMENT MADE BY THIS KIND OF DEBTOR FOR EXTENSIONS OF EXCLUSIVITY IS
FAMILIAR DUE TO THE COMPLEXITY OF ITS CASE THE NEED TO COMPLETE AN
OPERATIONAL TURNAROUND BEFORE EMERGING FROM BANKRUPTCY AND THE CHAOS THAT
WOULD RESULT FROM LETTING ANYONE FILE A PLAN IT IS SUPPOSEDLY IN THE BEST
INTERESTS OF THE ESTATE TO LET THE DEBTOR MONOPOLIZE THE REORGANIZATION
PROCESS

MACY'S HAS THUS PURSUED THE TYPICAL DEBTOR STRATEGY OF PRESERVING
EXCLUSIVITY AS LONG AS POSSIBLE BUT IT HAS ALSO SHOWN NO URGENT DESIRE TO
EXIT BANKRUPTCY AND THAT IS UNUSUAL IN FAILING TO COME FORTH WITH A PLAN
MACY'S MUST HAVE BELIEVED THAT IT COULD NOT OPERATE OUT OF BANKRUPTCY IN
1993 OR 1994 EVEN IF ALL ITS PREBANKRUPTCY DEBTS WERE CONVERTED TO EQUITY

IT IS ILLUSTRATIVE TO COMPARE THE MACY BANKRUPTCY TO THE RECENT BANKRUPTCY
OF ZALE CORP THE NATION'S LARGEST JEWELRY RETAILER THE ZALE BANKRUPTCY
INVOLVED AS COMPLEX A SET OF LEGAL AND VALUATION ISSUES AS HAVE BEEN FACED
IN ANY OTHER MAJOR BANKRUPTCY IN RECENT YEARS IN ADDITION ZALE HAD NO
CHIEF EXECUTIVE AND FACED VIRTUALLY A COMPLETE OPERATIONAL MAKEOVER

NOTWITHSTANDING THESE FACTS THE ZALE BANKRUPTCY COURT SET UP A RIGOROUS
TIMETABLE WITH THE AIM OF SEEING THAT THE BANKRUPTCY LASTED LESS THAN 18
MONTHS IN ADDITION THE ZALE BANKRUPTCY COURT IGNORED THE DEBTOR'S DESIRE
TO KEEP EXCLUSIVITY IN FACT THE COURT MADE REFERENCE TO THE UNEVEN PLAYING
FIELD THAT WOULD RESULT IF ONLY THE COMPANY ITSELF COULD CONTINUE TO FILE A
REORGANIZATION PLAN

ZALE'S BANKRUPTCY COUNSEL WEIL GOTSHAL & MANGES WHICH IS ALSO MACY'S
COUNSEL MADE THE PREDICTABLE ARGUMENT THAT CHAOS WOULD ENSUE IF ANY
INTERESTED PARTY COULD FILE A PLAN FOR ZALE WELL CHAOS OF A SORT DID IN
FACT ENSUE BUT IT LED TO ZALE CONFIRMING A PLAN OF REORGANIZATION WITHIN 18
MONTHS OF ENTERING BANKRUPTCY

ONE REASON THE MACY BANKRUPTCY HAS NOT BEEN HANDLED THIS WAY IS THAT IT IS
BEING HEARD IN THE SOUTHERN DISTRICT OF NEW YORK A LOCATION THAT HAS
SOMETIMES BEEN REFERRED TO AS DEBTOR'S PARADISE THE COURTS THERE ALWAYS
SEEM TO PRESUME THAT THE DEBTOR IS INNOCENT UNTIL PROVEN GUILTY AN
ADMIRABLE STANDARD IN CRIMINAL LAW BUT NOT IN BANKRUPTCY MATTERS THE
SOUTHERN DISTRICT'S COURTS SEEM TO AGREE WITH VIRTUALLY EVERY ARGUMENT A
DEBTOR MAKES SO LONG AS IT SOUNDS REASONABLE

SOME OBSERVERS BELIEVE THAT IF MACY'S HAD PROMPTLY COME UP WITH A
REORGANIZATION PLAN THAT AMONG OTHER THINGS CONVERTED ALL ITS
PREBANKRUPTCY DEBT TO EQUITY IT MIGHT HAVE OBTAINED POSTBANKRUPTCY
FINANCING THAT WOULD HAVE ENABLED IT TO EMERGE FROM BANKRUPTCY IN JANUARY
1993 EVEN IF THAT DATE WAS OVERLY OPTIMISTIC JANUARY 1994 WAS CERTAINLY
POSSIBLE

BUT FOR REASONS THAT ARE DIFFICULT TO COMPREHEND MACY'S HAS DELAYED THERE
IS NO NEED FOR AN OPERATIONAL MAKEOVER TO OCCUR ONLY WHILE A COMPANY IS IN
CHAPTER 11 AND IF AN EQUITY INFUSION WAS NEEDED TO HELP MACY'S MAKE AN
EARLY EXIT FROM CHAPTER 11 IT APPEARS THAT FIDELITY INVESTMENTS AND PERHAPS
OTHERS WOULD HAVE BEEN WILLING TO BUY UP DEBT IN EXCHANGE FOR EQUITY IN
1993 THE MILWAUKEEBASED PA BERGNER DEPARTMENT STORE CHAIN EMERGED FROM
BANKRUPTCY THANKS IN PART TO AN EQUITY INFUSION FROM A GROUP OF DEBTHOLDERS
FOLLOWING A REORGANIZATION PLAN IT WOULD NOT HAVE BEEN UNREASONABLE TO
EXPECT A SIMILAR SOLUTION IN THE CASE OF MACY'S

INSTEAD FOR THE PAST TWO YEARS MACY'S HAS FAILED TO COME UP WITH ANY PLAN
OF REORGANIZATION AND IT HAS PETITIONED THE COURT TO PREVENT ANY OTHER
INTERESTED PARTY FROM FILING ONE OF ITS OWN TO DATE THE COURT HAS
ACQUIESCED

NOW MACY'S IS REAPING THE BITTER HARVEST IT HAS SOWN WHEN MAJOR CREDITORS
SUCH AS PRUDENTIAL AND FIDELITY SEE MACY'S MAKING NO PROGRESS TOWARD EXITING
BANKRUPTCY AND WHEN THE COURT DENIES THESE CREDITORS THE RIGHT TO FILE
THEIR OWN PLANS OF REORGANIZATION IT SHOULD COME AS NO SURPRISE THAT THEY
BEGIN TO LOOK TO MACY'S COMPETITORS TO HELP SPEED UP THE PROCESS

CONGRESS HAS NOT TOTALLY IGNORED WHAT IS HAPPENING IN DEBTOR'S PARADISE THE
PROPOSED BANKRUPTCY REFORM BILL NOW IN CONGRESS WOULD DIRECT THE COURTS NOT
TO EXTEND EXCLUSIVITY BEYOND A YEAR UNLESS THE NEED FOR AN EXTENSION IS
ATTRIBUTABLE TO CIRCUMSTANCES FOR WHICH THE DEBTOR SHOULD NOT JUSTLY BE HELD
ACCOUNTABLE THEORETICALLY THAT PROVISION WOULD HELP BUT MANY OBSERVERS
FEAR THAT GIVEN THE PRODEBTOR BIAS OF MANY BANKRUPTCY COURTS FINDING THE
CIRCUMSTANCES TO JUSTIFY AN EXTENSION OF EXCLUSIVITY WILL BECOME ROUTINE

DURING AN EXCLUSIVITY HEARING IN THE ZALE BANKRUPTCY ONE ATTORNEY MADE THE
FOLLOWING STATEMENT WITH APOLOGIES TO SPIKE LEE MO' PLANS MO' BETTER
IN THE ZALE BANKRUPTCY AT LEAST THE COURT AGREED WITH GOOD RESULTS IN THE
CASE OF MACY'S HOWEVER AN END TO EXCLUSIVITY IS NOWHERE IN SIGHT

MR DICKSTEIN WAS A PARTICIPANT IN THE ZALE BANKRUPTCY AND IS CHAIRMAN OF
CARSON PIRIE SCOTT THE SUCCESSOR CORPORATION TO PA BERGNER SEE RELATED
ARTICLE AND AN ALTERNATIVE TO CHAPTER 11 WSJ JAN 19 1994 SEE
RELATED LETTER ZALE BANKRUPTCY CASE CLIMBING OUT OF CHAOS WSJ FEB
23 1994 9401190059 YY94 MM02 9402230060 940119 TEXAS JOURNAL  
PLEASE DON'T SUE BUT WE CALL THIS A GALLERIA STORY  BY BRIDGET
O' BRIAN

IT SEEMS LOGICAL ENOUGH THE AREA AROUND THE GALLERIA IS THE GALLERIA AREA

SO SAYS THE GALLERIA ITSELF THE 300STORE SHOPPING CENTER IN HOUSTON THAT
HAS BEEN TAKING OUT ADVERTISEMENTS IN LOCAL NEWSPAPERS EXHORTING THE PUBLIC
AND THE MEDIA NOT TO CALL THE ENVIRONS OF THE FAMED MALL THE GALLERIA
AREA BUT UPTOWN HOUSTON INSTEAD

WHY THE OBJECTION WE'RE PROTECTING THE FACT THAT IT'S OUR NAME SAYS LOIS
WILLIAMS ASSISTANT MARKETING DIRECTOR FOR THE GALLERIA WHICH IS OWNED BY
HINES INTERESTS LTD HOUSTON WE'RE A SPECIAL PLACE

THE GALLERIA HAS LONG BEEN AGGRESSIVE ABOUT PROTECTING ITS NAME WHICH IS
REGISTERED WITH THE STATE AS A SERVICE MARK AND THUS SHOULD ONLY BE USED TO
DENOTE THE HOUSTON SHOPPING CENTER AND ITS SISTER DEVELOPMENT IN DALLAS
ALSO OWNED BY HINES INTERESTS A LOT OF PEOPLE TRY TO RIDE ON OUR
COATTAILS MS WILLIAMS COMPLAINS

IN DALLAS GALLERIA'S NAME HASN'T CREPT BEYOND THE MALL IN PART BECAUSE THE
MALL IS ONLY 11 YEARS OLD HOUSTON'S IS 25 AND IN PART BECAUSE ITS NORTH
DALLAS LOCATION WAS WELL KNOWN BEFORE THE SHOPPING CENTER WAS BUILT

WE HAVEN'T HAD INSTANCES OF REFERENCES FROM AREA BUSINESSES SAYS JANE
ROBERTSON DIRECTOR OF MARKETING

BUT IN HOUSTON THE GALLERIA NAME POPS UP ON CAR DEALERSHIPS ELECTROLYSIS
OFFICES AND GAS STATIONS IN THE MALL'S VICINITY TO CITE JUST A FEW
INSTANCES THERE'S EVEN A GALLERIA AREA CHAMBER OF COMMERCE WHICH MS
WILLIAMS NOTES WE DO NOT RECOGNIZE

BUT GETTING PEOPLE TO SWITCH TO UPTOWN HOUSTON WILL BE TOUGH

JOHN BREEDING PRESIDENT OF THE UPTOWN HOUSTON CIVIC GROUP WHICH THE
GALLERIA DOES RECOGNIZE SAYS THAT PEOPLE ARE EVERY BIT AS FAMILIAR WITH
UPTOWN HOUSTON AS THEY WERE WITH THE FORMER NAME FOR THE AREA

PERHAPS BUT FOR THOSE WHO HAVE SOMEHOW FORGOTTEN THE OLD NAME IT WAS MAGIC
CIRCLE THAT MONIKER FADED IN THE 1970S BECAUSE SO FEW PEOPLE USED IT
SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR AS GROUCHO
SAID WSJ FEB 23 1994 9401190171 YY94 MM02 9402220188 940222 UAL
UNIT'S TRAFFIC SLOWS

APPLETON WIS AIR WISCONSIN AIRLINES CORP A UNIT OF UAL CORP SAID IT
FLEW 26933253 REVENUE PASSENGER MILES IN JANUARY DOWN 14 FROM THE
31221711 MILES IT FLEW IN JANUARY 1993

IN A NEWS RELEASE THE AIRLINE SAID LOAD FACTOR FOR THE MONTH FELL TO 476
FROM 485 IN JANUARY 1993 9402220185 940222 ENTERPRISE AGENCY DEMANDS
RESTRICTIONS ON SBIC BANKRUPTCIES  QUICK CHAPTER 11 FILINGS NOW FORCE
 GOVERNMENT TO SWALLOW BIG DEBTS  BY JEANNE SADDLER STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE SMALL BUSINESS ADMINISTRATION IS MOVING TO CURB ABUSES IN
ITS VENTURECAPITAL PROGRAM BUT IT WANTS MORE HELP FROM CONGRESS

SBA OFFICIALS SAY THEY WILL PRESS LAWMAKERS TO PASS LEGISLATION TO BAR
FAILING SMALL BUSINESS INVESTMENT COMPANIES OR SBICS FROM ESCAPING DEBTS
OWED TO THE GOVERNMENT BY DECLARING BANKRUPTCY WE WANT CONGRESS TO ACT
BECAUSE WE'VE FOUND OURSELVES WAITING AT THE GATE TOO MANY TIMES WHEN
LICENSEES RUSHED TO BANKRUPTCY COURT ROBERT STILLMAN THE SBA'S NEW
ASSOCIATE ADMINISTRATOR FOR INVESTMENT SAID IN AN INTERVIEW

THE SENATE PLANS TO CONSIDER LEGISLATION THIS YEAR TO CLOSE THE BANKRUPTCY
LOOPHOLE BUT SO FAR THERE ISN'T ANY MATCHING BILL IN THE HOUSE MEANWHILE
SBA OFFICIALS SAY THE AGENCY PLANS TO BEGIN A REVAMPED SBIC PROGRAM
INCLUDING CLOSER SCRUTINY OF APPLICANTS UNDER REFORMS PASSED BY CONGRESS IN
1992 THE REFORMS HAD BEEN DELAYED BECAUSE OF THE IMPASSE OVER THE
BANKRUPTCY LEGISLATION

UNDER THE SBIC PROGRAM PRIVATELY OWNED FIRMS USE A COMBINATION OF FEDERALLY
GUARANTEED DEBT AND PRIVATE CAPITAL TO HELP FINANCE SMALL BUSINESSES
PROBLEMS AROSE IN THE PROGRAM IN THE LATE 1980S WHEN SCORES OF SBICS FAILED
BECAUSE OF THE RECESSION AND POOR MANAGEMENT ALTHOUGH THE SBA SOLD
COMPANIES' REMAINING ASSETS TAXPAYERS WERE LEFT HOLDING THE BAG FOR
HUNDREDS OF MILLIONS OF DOLLARS OF FAILED SBIC INVESTMENTS LEADING CONGRESS
TO PASS A PROGRAM REFORM LAW IN 1992

BUT IN 14 OF THE CASES FASTMOVING ENTREPRENEURS FILED FOR BANKRUPTCY
BEFORE THE SBA COULD CLAIM ANY ASSETS BECAUSE THE GOVERNMENT IS A
SUBORDINATE DEBTOR ACCORDING TO THE LAW THAT ESTABLISHED THE PROGRAM MORE
THAN 70 MILLION OF FEDERAL DEBT OWED BY THE INVESTMENT FIRMS IS LIKELY TO
BE WIPED OUT IN ONE OF THE MOST SERIOUS CASES RIVER CAPITAL CORP OF
SPRINGFIELD VA SPENT 28 MILLION IN GOVERNMENT FUNDS ON BAD INVESTMENTS
AND FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE THE
COURT ELIMINATED ITS DEBT

THE SENATE PASSED LEGISLATION LAST YEAR TO BAR SBICS FROM SEEKING BANKRUPTCY
PROTECTION FROM GOVERNMENT DEBTS BUT A COMPANION MEASURE DIED IN THE HOUSE
SEN DALE BUMPERS THE ARKANSAS DEMOCRAT WHO HEADS THE SMALL BUSINESS
COMMITTEE SAYS HE PLANS TO TRY AGAIN TO PASS THE BILL BUT THE OUTLOOK IS
UNCERTAIN IN THE HOUSE WHERE LEGISLATION LAST YEAR FAILED TO WIN THE
BACKING OF REP JACK BROOKS THE HOUSE JUDICIARY COMMITTEE CHAIRMAN

CONGRESSIONAL AIDES WON'T SPECULATE ON WHY THE PROVISION DIDN'T PASS MUSTER
WITH MR BROOKS OR WHETHER HE WILL BACK A MEASURE THIS YEAR BUT OTHER
INDUSTRY AND GOVERNMENT OFFICIALS BELIEVE THE TEXAS DEMOCRAT MAY PROPOSE AND
BACK THE BANKRUPTCY BAN THIS YEAR BECAUSE THE BAN WOULD TECHNICALLY ADD A
BIT OF REVENUE TO THE FEDERAL BUDGET

REGARDLESS OF HOW THE LEGISLATIVE DIFFERENCES ARE WORKED OUT THE SBA IS NOW
PREPARING TO UPGRADE STANDARDS FOR LICENSING SBIC APPLICANTS WE'RE GOING
TO LICENSE VERY HARD SBA ADMINISTRATOR ERSKINE BOWLES SAID IN AN
INTERVIEW WE'LL ONLY LICENSE HIGHLY EXPERIENCED VENTURE CAPITALISTS AND
WE'LL MAKE SURE THOSE PEOPLE BRING ENOUGH PRIVATE CAPITAL INTO THE
COMPANIES

A NEW LICENSING UNIT IN THE SBA'S INVESTMENT DIVISION WILL BE RESPONSIBLE
FOR THE MORE INTENSE SCRUTINY OF APPLICANTS THE AGENCY ALREADY HAS RECEIVED
PRELIMINARY APPLICATIONS FOR THE REFORMED SBIC PROGRAM BUT MR STILLMAN
SAID HE IS RETURNING THEM UNTIL THE FINAL REGULATIONS ARE PUBLISHED SO
APPLICANTS CAN CAREFULLY SCRUTINIZE THE NEW RULES

IN A SPEECH TO A GROUP OF SBIC EXECUTIVES EARLIER THIS MONTH MR STILLMAN
WHO SPENT MORE THAN 30 YEARS AS A PRINCIPAL WITH WALL STREET INVESTMENT
FIRMS SAID THAT QUALITY OF MANAGEMENT WILL BE A KEY TO AN SBIC'S FUTURE
SUCCESS I LIKE TO SAY I'VE ONLY MADE ONE MISTAKE IN MY ENTIRE CAREER AND
THAT WAS THE SERIOUS ONE OF SOMETIMES INVESTING IN THE WRONG PEOPLE HE
ADDED IN THE INTERVIEW

UNDER THE REFORMS PASSED BY CONGRESS IN 1992 THE SBIC PROGRAM IS NOW
ATTRACTING INCREASED INTEREST BECAUSE OF A CHANGE IN HOW THE FEDERAL SUPPORT
IS STRUCTURED IN THE ORIGINAL PROGRAM CREATED IN 1958 TO ENCOURAGE
FINANCIAL BACKING FOR HIGHRISK VENTURES INVESTMENT COMPANIES GOT
GOVERNMENT FUNDS THROUGH DEBENTURES WHICH LIKE LOANS REQUIRE REGULAR
INTEREST PAYMENTS THUS THE LICENSEES OFTEN BORROWED ADDITIONAL MONEY TO
MAKE INTEREST PAYMENTS WHILE WAITING FOR THEIR BASIC INVESTMENTS TO MATURE
VENTURECAPITAL INVESTMENTS TYPICALLY TAKE YEARS TO PRODUCE DIVIDENDS OR
PROFITS FOR THEIR FINANCIAL BACKERS

THE NEW PROGRAM WILL ALLOW INVESTORS TO USE A NEW DEBT INSTRUMENT CALLED A
PARTICIPATING SECURITY THAT SOME BELIEVE IS BETTER SUITED TO LONGTERM
INVESTMENTS THE GOVERNMENT THROUGH THE SBA WILL HOLD A
PARTICIPATINGSECURITY INTEREST IN THE SBICS THAT MEANS THE GOVERNMENT
WON'T BE REPAID UNTIL THE INVESTMENT COMPANY HAS RETAINED EARNINGS FROM ITS
INVESTMENTS AND IS PAYING DIVIDENDS TO ALL ITS INVESTORS UNCLE SAM WILL
ALSO GET A SMALL SHARE OF PROFITS FROM THE SBIC'S INVESTMENTS

FIXING THE SBIC PROGRAM'S REMAINING PROBLEMS HAS TAKEN ON NEW IMPORTANCE AS
REPORTED THE CLINTON ADMINISTRATION'S PROPOSED BUDGET FOR FISCAL YEAR 1995
WHICH BEGINS NEXT OCT 1 WOULD MORE THAN DOUBLE THE LOAN FUNDS AVAILABLE TO
THE INVESTMENT FIRMS

THE SBA EXPECTS TO LICENSE ABOUT 200 NEW SBICS RAISING THE TOTAL TO 480
FROM 280 CURRENTLY WITH A COMBINED TOTAL OF PRIVATE INVESTMENT CAPITAL OF
23 BILLION BECAUSE THOSE COMPANIES CAN GAIN DOUBLE THEIR PRIVATE CAPITAL
IN GOVERNMENT INVESTMENT FUNDS MR STILLMAN SAID THE COMPANIES WILL HAVE
ACCESS TO ABOUT 45 BILLION IN GOVERNMENT INVESTMENT DOLLARS

THAT NEARLY 7 BILLION IN NEW VENTURECAPITAL MONEY AVAILABLE IN FISCAL 1995
WOULD BE IN ADDITION TO THE 3 BILLION NOW IN THE PROGRAM MEANING THE TOTAL
CAPITAL AVAILABLE THROUGH THE PROGRAM WOULD JUMP TO 10 BILLION FROM 3
BILLION 9402220184 940222 BROKEN HILL PLANS TO MINE DIAMONDS AT
CANADIAN SITE  BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL
STREET JOURNAL

BROKEN HILL PROPRIETARY CO HAS PRESENTED CANADIAN ENVIRONMENTAL AUTHORITIES
WITH A PLAN TO SPEND ABOUT 500 MILLION CANADIAN DOLLARS US3741 MILLION
DEVELOPING A DIAMOND MINE IF TESTS AT A SITE NEAR THE ARCTIC CIRCLE
CONTINUE TO BE FAVORABLE

BRUCE TURNER THE AUSTRALIAN MINING CONCERN'S MANAGER FOR THE DIAMOND
PROJECT SAID COMPANY PLANS TO START CONSTRUCTION NEXT YEAR AND TO BE
PRODUCING DIAMONDS IN 1997

MR TURNER SAID A FIRM DECISION WON'T BE MADE UNTIL A FEASIBILITY STUDY IS
FINISHED PROBABLY IN AUGUST AND WORK CAN'T BE DONE UNTIL THE COMPANY GETS
ENVIRONMENTAL APPROVALS HOWEVER HE SAID HE IS OPTIMISTIC THAT THE MINE
WILL BE DEVELOPED ON SCHEDULE WE ARE SERIOUS WE'RE SPENDING LOTS OF
MONEY HE SAID

THE PROJECT NEAR LAC DE GRAS IN CANADA'S NORTHWEST TERRITORIES WOULD BE
THE COUNTRY'S FIRST DIAMOND MINE IN PRELIMINARY SMALL SAMPLES BROKEN HILL
HAS DISCOVERED DIAMONDS OF GOOD SIZE QUALITY AND COLOR

JOHN TODD NORTHWEST TERRITORIES MINISTER OF ENERGY MINES AND PETROLEUM
RESOURCES SAID IN A RECENT STATEMENT IN THE TERRITORIES' GOVERNMENT
LEGISLATURE THAT THE PROPOSED MINE WOULD PROCESS MORE ORE THAN ALL OTHER
MINES PRESENTLY OPERATING IN THE MINERALRICH CANADIAN TERRITORY HE SAID
BROKEN HILL IS PURSUING AN AGGRESSIVE SCHEDULE FOR DEVELOPING THE MINE

THE LAC DE GRAS DIAMOND PROSPECT IS OWNED 51 BY BROKEN HILL AND 29 BY DIA
MET MINERALS LTD KELOWNA BRITISH COLUMBIA PRIVATE INVESTORS INCLUDING
THE DISCOVERER OF THE PROSPECT CHARLES FIPKE ALSO HOLD STAKES IN THE
PROJECT

SEPARATELY DIA MET SAID IT IS BEING SUED BY GEOLOGIST STEWART BLUSSON OVER
OWNERSHIP OF ADDITIONAL DIAMOND PROSPECTS NEAR THE PROPOSED MINE SITE DIA
MET SAID ITS CORE CLAIMS IN THE LAC DE GRAS REGION AREN'T AFFECTED BY THE
SUIT FILED IN THE SUPREME COURT OF BRITISH COLUMBIA 9402220183 940222
MONEY RATES

THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL
LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS

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 3/4
 3 5/8 FIVE MONTHS 3 13/16 3 11/16 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 5/8 THREE
MONTHS 3 13/16 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

PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF
THE NATION'S 30 LARGEST BANKS

FEDERAL FUNDS 3 1/4 HIGH 3 1/8 LOW 3 3/16 NEAR CLOSING BID 3 1/4
OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS
OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC

DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE
FEDERAL RESERVE BANKS

CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL
SOURCE DOW JONES TELERATE INC

COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 335 30
TO 59 DAYS 342 60 TO 89 DAYS 345 90 TO 119 DAYS 350 120 TO 149
DAYS 353 150 TO 179 DAYS 358 180 TO 239 DAYS 365 240 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 342 30 DAYS 347 60 DAYS 354 90 DAYS

CERTIFICATES OF DEPOSIT 274 ONE MONTH 278 TWO MONTHS 286 THREE
MONTHS 304 SIX MONTHS 339 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 328 ONE MONTH 342 THREE MONTHS 355 SIX MONTHS

BANKERS ACCEPTANCES 331 30 DAYS 338 60 DAYS 341 90 DAYS 347 120
DAYS 353 150 DAYS 357 180 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 1/2 3 3/8 TWO
MONTHS 3 9/16 3 7/16 THREE MONTHS 3 5/8 3 1/2 FOUR MONTHS 3
11/16 3 9/16 FIVE MONTHS 3 3/4 3 5/8 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 9/16 THREE
MONTHS 3 3/4 SIX MONTHS 4 1/8 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 589 JAPAN 3 SWITZERLAND
750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 14 1994 AUCTION OF
SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN
UNITS OF 10000 TO 1 MILLION 328 13 WEEKS 343 26 WEEKS

FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR
MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 719 60 DAYS 725 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 725 60
DAYS 734 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 535 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC

MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9402220182 940222 PRUDENTIAL YANKS AD AFTER STARRING BROKER IS CITED
IN LAWSUIT  STRAIGHT TALK TV PITCH MADE TO POLISH IMAGE IS PULLED
 FOR FEAR OF MORE CLAIMS  BY MICHAEL SICONOLFI STAFF REPORTER OF
THE WALL STREET JOURNAL

NEW YORK PRUDENTIAL SECURITIES INC YANKED A CONTROVERSIAL TELEVISION
ADVERTISEMENT STARRING A STOCKBROKER WHO WAS SUED BY AN 81YEAROLD ROMAN
CATHOLIC PRIEST

PRUDENTIAL'S CONCERN COPYCAT SUITS BY OTHER CLIENTS OF THE BROKER JEFFERY
D DAGGETT

THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA SAYS THE AD WAS
PULLED BY MUTUAL CONSENT TO BE HONEST IT WAS AT HIS REQUEST BUT WE WERE
GOING TO DO IT ANYWAY SAYS A PRUDENTIAL SPOKESMAN SAYS MR DAGGETT I
DON'T WANT TO EMBARRASS THE FIRM

AS PREVIOUSLY REPORTED 40YEAROLD MR DAGGETT WHO STARS IN PRUDENTIAL'S
NEW STRAIGHT TALK TV AD CAMPAIGN WAS SUED BY MSGR MAXIMOS MARDELLI A
FORMER CLIENT ALLEGING FRAUD IN HIS LIMITEDPARTNERSHIP BROKERAGE ACCOUNT

THE SUIT FILED LAST WEEK IN LOS ANGELES SUPERIOR COURT UNDERSCORES THE
PERILS WALL STREET FIRMS FACE IN TOUTING BROKERS IN AD CAMPAIGNS WITH THE
EXPLOSION OF SECURITIES LITIGATION IN RECENT YEARS BROKERS ARE VULNERABLE

WE RECOGNIZED ALL ALONG THAT THERE WAS AN ELEMENT OF RISK IN OUR STRAIGHT
TALK ADVERTISING STRATEGY SAYS A FEB 17 MEMO WRITTEN BY RONNA
LICHTENBERG PRUDENTIAL'S MARKETING DIRECTOR BUT IT'S IMPORTANT TO
REMEMBER THAT STRAIGHT TALK MEANS JUST THAT STRAIGHT TALK DOESN'T GUARANTEE
INVESTMENT PERFORMANCE

PRUDENTIAL SAYS IT TOOK A LOT OF CARE IN CREATING THE AD CAMPAIGN AND IN
CHOOSING THE BROKERS WHO APPEAR IN IT THE TV AND PRINT AD BLITZ LAUNCHED
THIS MONTH IS A BID BY PRUDENTIAL TO REPAIR THE DAMAGE FROM ITS
LIMITEDPARTNERSHIP SCANDAL

JUST BECAUSE MR DAGGETT SOLD A PARTNERSHIP AT SOME POINT IS NOT A SMIRCH
ON HIS RECORD THE PRUDENTIAL SPOKESMAN SAID

PRUDENTIAL HAS SET UP A 330 MILLION REPARATIONS FUND AS PART OF AN OCTOBER
SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS
PRUDENTIAL HAS BEEN ACCUSED OF WIDESPREAD FRAUD IN SELLING 815 BILLION OF
PARTNERSHIPS IN THE 1980S

IN HIS SUIT THE MONSIGNOR SAYS MR DAGGETT IMPROPERLY PRODDED HIM TO ACCEPT
A SMALL SETTLEMENT INVOLVING A PORTFOLIO OF PRUDENTIAL REALESTATE
PARTNERSHIPS INSTEAD OF ADVISING HIM OF OTHER OPTIONS THE RESULT THE SUIT
SAYS WAS THAT MSGR MARDELLI WAS DEPRIVED OF HIS LEGAL RIGHTS TO SEEK FULL
RECOVERY FOR HIS DAMAGES

MR DAGGETT DECLINED TO COMMENT ON THE SUIT BUT PRUDENTIAL SAYS MSGR
MARDELLI NEVER COMPLAINED TO THE BROKER OR THE FIRM ABOUT HIS ACCOUNT WHICH
HE MOVED IN 1992 TO CHARLES SCHWAB CORP MR DAGGETT'S COMPLIANCE HISTORY IS
SPOTLESS PRUDENTIAL SAID A CHECK OF HIS RECORD WITH REGULATORS SHOWS NO
DISCIPLINARY CASES

MSGR MARDELLI WHO HAD UNSPECIFIED LOSSES FROM HIS 100000 VMS REALTY
PARTNERS REALESTATE INVESTMENT TOOK PART IN A VMS CLASSACTION SETTLEMENT
IN 1991 IN WHICH INVESTORS RECEIVED PENNIES ON THE DOLLAR 9402220181
940222 BIG SALT PRODUCER SAYS WINTER STORMS ARE MIXED BLESSING  
SPECIAL TO THE WALL STREET JOURNAL

AMSTERDAM THE WINTER STORMS THAT BATTERED PARTS OF THE US HAVE PROVED A
MIXED BLESSING FOR AKZO NV THE BIG DUTCH CHEMICAL COMPANY

AKZO IS THE LARGEST PRODUCER OF SALT PRODUCTS IN THE US INCLUDING ROAD
SALTS AND WITH ALL THE SNOW AND ICE THIS WINTER SALT HAS BEEN SELLING LIKE
MAD BUT AT THE SAME TIME THE EXTREME WEATHER HAS MADE IT HARDER FOR AKZO TO
DO BUSINESS

YES WE'RE GOING TO BE MORE PROFITABLE BECAUSE OF THE STORMS BUT COSTS
HAVE ALSO GONE UP SAYS CATHERINE BOLTON A SPOKESWOMAN FOR AKZO SALT IN
THE US

AKZO DOESN'T BREAK OUT DIVISION SALES BUT ANALYSTS SAY THE US SALT
OPERATIONS ARE SUBSTANTIAL THE US ACCOUNTS FOR ABOUT ONEQUARTER OF
AKZO'S ANNUAL WORLDWIDE SALES OF MORE THAN 16 BILLION GUILDERS 825
BILLION THOSE SALES TOTALS EXCLUDE THE COMPANY'S RECENT ACQUISITION OF
NOBEL INDUSTRIER AB OF SWEDEN

MS BOLTON SAYS AKZO HAS SHIPPED A THIRD MORE ROAD DEICING SALT THAN USUAL
SO FAR THIS YEAR A TOTAL OF 35 MILLION TONS OF ROCK SALT SINCE JAN 1

IT HAS BEEN AN UNPRECEDENTED WINTER WITH RECORD SNOWFALL SINCE DEC 15
WE'VE HAD STORM AFTER STORM AFTER STORM SHE NOTES BUT SHE ADDS IT
COSTS MORE TO TRANSPORT THE SALT AND WHILE WE MAKE MORE PROFIT WE CAN'T
PRODUCE THE SALT AS ECONOMICALLY

TO REPLENISH DEPLETED CUSTOMER STOCKPILES AKZO HAS BEEN HUSTLING TO MOVE
SALT TO THE MARKET AS QUICKLY AS NEEDED IT'S BEEN LIKE FIGHTING A WAR
MS BOLTON SAYS

TO OFFSET THE PROBLEMS OF MOVING ROCK SALT DEICERS BY ROAD AND RAIL AKZO
ALREADY HAS SHIPPED A COUPLE THOUSAND TONS OF SEA SALTBASED DEICERS VIA
BOATS FROM ITS CARIBBEAN UNIT AT BONAIRE

AKZO HAS THREE ROCK SALT MINES IN THE US WITH THE MAIN MINE IN RETSOF
NY

AKZO'S US SALT OPERATIONS GOT A BIG BOOST IN 1987 WHEN THE COMPANY
ACQUIRED DIAMOND CRYSTAL SALT

AKZO IS SCHEDULED TO REPORT ITS 1993 NET PROFIT NEXT WEEK WITH ANALYSTS'
ESTIMATES ROUGHLY BETWEEN 525 MILLION AND 600 MILLION GUILDERS AFTER
EXTRAORDINARY CHARGES OF MORE THAN 100 MILLION GUILDERS THAT WOULD BE DOWN
FROM 1992'S NET PROFIT OF 646 MILLION GUILDERS ON SALES OF 169 BILLION
GUILDERS 9402220180 940222 WHO'S NEWS SANTA FE ENERGY RESOURCES INC

SANTA FE ENERGY RESOURCES INC HOUSTON DAVID M SCHULTE MANAGING
PARTNER OF CHILMARK PARTNERS A CHICAGO MERCHANT BANKING FIRM WAS NAMED A
DIRECTOR OF THIS OIL AND NATURALGAS EXPLORATION AND PRODUCTION COMPANY
EXPANDING THE BOARD TO 12 MEMBERS 9402220179 940222 WHO'S NEWS STRIDE
RITE CORP

STRIDE RITE CORP CAMBRIDGE MASS JONATHAN CAPLAN 41 YEARS OLD
PRESIDENT OF THIS SHOEMAKER'S CHILDREN'S GROUP WAS NAMED PRESIDENT OF ITS
KEDS CORP UNIT HE WILL BE SUCCEEDED BY MARGARET WHITMAN 37 WHO HAD BEEN
EXECUTIVE VICE PRESIDENT OF KEDS MR CAPLAN SUCCEEDS DOMINIC FERLAUTO 55
WHO WAS NAMED TO THE NEW POST OF PRESIDENT OF NEW BUSINESS DEVELOPMENT THE
COMPANY SAID MR FERLAUTO WAS GIVEN THE NEW JOB TO EXPAND MARKETING TO MASS
MERCHANTS IT SAID THE MOVE WASN'T RELATED TO A RECENT DECLINE IN SALES OF
KEDS SNEAKERS 9402220178 940222 CANADIAN RETAIL SALES RISE

OTTAWA CANADIAN RETAIL SALES ROSE 09 IN DECEMBER FROM NOVEMBER LED BY
A GAIN IN AUTO SALES STATISTICS CANADA A GOVERNMENT AGENCY SAID

THE DECEMBER RISE FOLLOWED RETAILSALES INCREASES OF 01 IN NOVEMBER AND
03 IN OCTOBER

AUTO SALES ROSE IN DECEMBER FOR THE FOURTH CONSECUTIVE MONTH INCREASING
43 FROM NOVEMBER 9402220177 940222 INTERNATIONAL YEARROUND SANTA 
STRIKES BLOW AGAINST POVERTY IN BRAZIL  FRAIL ACTIVIST FILLS THE
BELLIES OF THOUSANDS OF HUNGRY FUELS GRASSROOTS EFFORTS  BY
THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL

RIO DE JANEIRO ROSEMARY ALVES DOS SANTOS WASN'T LOOKING FORWARD TO
CHRISTMAS UNEMPLOYED AND LIVING IN ONE GLUM ROOM IN A SHANTYTOWN OUTSIDE OF
RIO SHE HAD VIRTUALLY NOTHING TO FEED HER HUSBAND ALSO UNEMPLOYED AND HER
13MONTHOLD DAUGHTER LET ALONE BUY THEM ANY PRESENTS

BUT SHE AWOKE ON CHRISTMAS DAY TO FIND THE BEST PRESENT I EVER GOT HERS
WAS AMONG THE 600 FAMILIES IN THE MARE SHANTYTOWN THAT HAD BEEN SELECTED TO
RECEIVE A FREE CRATE OF FOOD SUDDENLY SHE SAYS MY BARE CUPBOARD FILLED
UP WITH RICE BEANS TOMATO SAUCE A CAN OF SARDINES A CAN OF SAUSAGES
NOODLES COOKIES CRACKERS AND POWDERED COCOA

I BELIEVE IN SANTA CLAUS AGAIN THE 29YEAROLD MRS DOS SANTOS SAYS

SANTA CLAUS IN THIS CASE ISN'T ROUND AND BEARDED HE'S A BALDING IMP OF A
MAN WITH PIERCING BLUE EYES NAMED HERBERT DE SOUZA BY LAUNCHING A
GOVERNMENTSUPPORTED CAMPAIGN WHOSE NAME IS A MOUTHFUL ACTION FOR
CITIZEN'S RIGHTS AGAINST MISERY AND FOR LIFE MR DE SOUZA HAS SUCCEEDED
IN FILLING THE BELLIES OF THOUSANDS OF HUNGRY BRAZILIANS AND IN THE
PROCESS THE FRAIL 58YEAROLD SOCIOLOGIST WHO GOES BY THE NICKNAME
BETINHO HAS GIVEN RISE TO AN IMAGE OF A CYNICAL SELFISH NATION

WITH HIS WOUNDEDBIRD LOOK HE INFECTED PEOPLE WITH A CRAZY IDEA IF
EVERYONE WANTS TO IF YOU ORGANIZE WITHOUT PAYING ATTENTION TO THE
GOVERNMENT YOU CAN MAKE THINGS HAPPEN SAYS POLITICAL SCIENTIST MARCIO
MOREIRA ALVES

AT FIRST GLANCE MR DE SOUZA HARDLY FITS THE ROLE OF A CRUSADER FOR HOPE A
HEMOPHILIAC WHO CAUGHT THE HIV VIRUS DURING A TRANSFUSION AND WHO HAS
ALREADY LOST TWO BROTHERS TO AIDS HE BARELY WEIGHS 100 POUNDS AND OFTEN HAS
TO CUT HIS APPOINTMENT SCHEDULE TO WARD OFF FEVER AND FATIGUE BUT WORKING
WITH THE URGENCY OF A MAN LIVING ON BORROWED TIME HE HAS MANAGED TO
COMMUNICATE TO BRAZILIANS THE ANGUISH HE FEELS OVER BRAZIL'S TRADITIONAL
INDIFFERENCE TO MISERY AND TO A SKEWED INCOME DISTRIBUTION IN WHICH THE
RICHEST 5 OF THE POPULATION HOLD 344 OF THE NATIONAL WEALTH WHILE THE
POOREST 50 HOLD 126

THIS ISN'T A POOR COUNTRY MR DE SOUZA SAYS IN AN INTERVIEW THIS IS A
COUNTRY WITH POVERTY AND DEMOCRACY AND MISERY ARE INCOMPATIBLE

THE MESSAGE CLEARLY CAUGHT ON RESPONDING TO MR DE SOUZA'S CALL TO STOP
WAITING FOR GOVERNMENT SOLUTIONS AND START DOING SOMETHING ABOUT HUNGER AND
MISERY MORE THAN 3000 VOLUNTEER COMMITTEES HAVE SPRUNG UP THROUGHOUT THE
COUNTRY TO COLLECT AND REDISTRIBUTE DONATIONS OF FOOD MONEY AND CLOTHING

HELP HAS COME UNDER A VARIETY OF FORMS MUSICIANS SUCH AS CHICO BUARQUE HAVE
ORGANIZED CONCERTS WITH NONPERISHABLE GOODS ACCEPTED AS PAYMENT FOR
TICKETS THE ELECTRIC UTILITY IN THE STATE OF GOIAS DONATED 91 HECTARES
2248 ACRES OF LAND TO PLANT FOODSTUFFS STATECONTROLLED BANCO DO BRASIL
SA SECONDED PEOPLE TO START UP COMMITTEES A BARBER IN SAO PAULO MAKES
CLIENTS PAY IN FOOD ONCE A WEEK EVEN PRISONERS JOINED THE CAMPAIGN INMATES
AT NINE RIO PRISONS DECIDED TO SKIP A MEAL ON SATURDAYS AND DONATE THE FOOD
GENERATING 25 MILLION TONS OF FOOD

MR DE SOUZA SAYS THE CAMPAIGN'S SUCCESS IS CHIEFLY DUE TO ITS SIMPLE
MESSAGE AND SIMPLE METHODS IT'S SO SIMPLE IN FACT THAT MANY WONDER WHY IT
TOOK SO LONG TO HAPPEN THE OBVIOUS BECAME A REVELATION AND THE COMMON
CITIZEN BECAME A HERO MR DE SOUZA SAYS

THERE IS NO CENTRAL ORGANIZATION ANYONE CAN FORM A COMMITTEE AND IS THEN
RESPONSIBLE FOR FINDING DONORS AND SELECTING RECIPIENTS THERE'S LITTLE
BUREAUCRACY EITHER THERE ARE NO DEPOSITS NO WAREHOUSES IT'S
JUSTINTIME SAYS MR DE SOUZA

BUT MR DE SOUZA AND HIS FOLLOWERS SEE THE CAMPAIGN AS FAR MORE THAN MERE
HANDOUTS TO THEM IT'S PART OF THE ETHICAL BACKLASH THAT BEGAN SWEEPING THE
COUNTRY SINCE PRESIDENT FERNANDO COLLOR DE MELLO'S 1992 OUSTER ON CORRUPTION
CHARGES A SIGN THAT BRAZILIAN SOCIETY IS DISCOVERING ITS RIGHTS AND DUTIES
WE DISCOVERED THAT LACK OF ETHICS ISN'T JUST ASSAULTING THE PUBLIC COFFERS
BUT ALSO BEING COMPLACENT ABOUT THOUSANDS OF PEOPLE WHO ARE HUNGRY SAYS
PLINIO DE ARRUDA SAMPAIO ONE OF THE CAMPAIGN'S COORDINATORS

TO BE SURE THE CAMPAIGN HAS ITS DETRACTORS IT'S NOT WITH SHOWS BY
MUSICIANS THAT WE WILL RESOLVE THE DAYTODAY LIFE OF MILLIONS OF
CHRONICALLY EMPTY STOMACHS WROTE A PHYSICIAN EVERTON MARQUES DOS SANTOS
IN THE DAILY JORNAL DO BRASIL THIS CAMPAIGN CAN'T SUSTAIN ITSELF AND HAVE
THE EFFECT DESIRED BY BETINHO'S GOOD AND PURE SOUL OTHERS SAY MR DE
SOUZA'S CAMPAIGN MAKES BRAZIL SEEM LIKE ANOTHER SOMALIA BUT THE PROBLEM
ISN'T STARVATION IT'S MALNUTRITION

OTHERS STILL SAY THE CAMPAIGN ADDRESSES A SYMPTOM AND NOT ITS CAUSE WHICH
IS UNEVEN INCOME DISTRIBUTION

MR DE SOUZA ADMITS THAT THE CAMPAIGN WON'T RESOLVE BRAZIL'S PROBLEMS BUT
HE SAYS OFFICIAL FIGURES SHOW THAT 32 MILLION BRAZILIANS ABOUT 20 OF
THE POPULATION EARN LESS THAN WHAT'S NECESSARY TO FEED THEMSELVES AND
THIS IS AN EMERGENCY THAT CAN'T WAIT FOR STRUCTURAL SOLUTIONS BUT AWARE
THAT FOOD HANDOUTS ARE ONLY A TEMPORARY SOLUTION MR DE SOUZA WANTS TO
FOCUS THE CAMPAIGN THIS YEAR ON JOBS MORE THAN FOOD

IT TAKES ONLY A VISIT TO ONE OF RIO'S FAVELAS OR SHANTYTOWNS TO SEE
THERE'S A NEED FOR HELP WHEN 78YEAROLD MARIA BARRETO LEITE DESPITE HER
OLD AGE AND WEAK LEGS CLIMBED THE STEEP HILLS OF THE BABILONIA FAVELA
WHICH OVERLOOKS THE FAMOUS COPACABANA BEACH TO DISTRIBUTE THE FOOD HER
COMMITTEE HAD COLLECTED SHE FOUND A LONG LINE OF PEOPLE WAITING FOR THE
HANDOUTS SOME WOMEN EVEN KISSED MY HANDS SHE SAYS

ON THIS DAY ONLY PENSIONERS ARE BEING ATTENDED TO BUT THAT DOESN'T STOP
OTHERS FROM ASKING FOR FOOD TOO THANK GOD I GOT SOMETHING FOR CHRISTMAS
BUT IT RAN OUT YESTERDAY SAYS 32YEAROLD MARCIA REGINA DOS SANTOS WHO'S
HANDICAPPED AND OUT OF WORK HOW CAN I WAIT TILL THE NEXT HANDOUT
9402220176 940222 SEAGRAM SELLS JUICE IN ARGENTINA

BRADENTON FLA TROPICANA PRODUCTS INC A UNIT OF SEAGRAM CO SAID IT
INTRODUCED ITS PURE PREMIUM ORANGE AND GRAPEFRUIT JUICES TO SUPERMARKETS IN
ARGENTINA

THE COMPANY INDICATED THAT THIS IS ITS FIRST ENTRY INTO SOUTH AMERICA'S
MARKET 9402220175 940222 WHO'S NEWS GTI CORP

GTI CORP SAN DIEGO TIMOTHY M CURTIS PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF GTI'S MAJORITY SHAREHOLDER LONDONBASED TELEMETRIX PLC WAS
NAMED A DIRECTOR SUCCEEDING CHARLES A STRIDE A TELEMETRIX DIRECTOR
PUBLICLY TRADED GTI MAKES NETWORK PRODUCTS AND ELECTRONIC COMPONENTS AND
PRODUCTS FOR THE COMMUNICATIONS ELECTRONICS AND SEMICONDUCTOR INDUSTRIES
9402220174 940222 PAXAR'S 4THQUARTER NET FELL 23

PEARL RIVER NY PAXAR CORP REPORTED A 23 DROP IN NET INCOME IN THE
FOURTH QUARTER

THE LABEL MAKER EARNED 187 MILLION OR 13 CENTS A SHARE COMPARED WITH
243 MILLION OR 17 CENTS A SHARE IN THE FOURTH QUARTER OF 1992

THE COMPANY BLAMED A GENERAL SOFTENING IN APPAREL SALES WHICH HURT THE
COMPANY'S PRINTED AND WOVEN LABEL BUSINESS 9402220173 940222 WHO'S NEWS
 FEDERATED DEPARTMENT STORES INC

FEDERATED DEPARTMENT STORES INC CINCINNATI LAWRENCE E HONIG WAS NAMED
PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE DEPARTMENT STORE RETAILER'S
ATLANTABASED CENTRALIZED DATA PROCESSING DIVISION FEDERATED SYSTEMS GROUP
MR HONIG 45 YEARS OLD WAS FORMERLY VICE CHAIRMAN AND A DIRECTOR OF MAY
DEPARTMENT STORES CO IN ST LOUIS HE SUCCEEDS GLEN GRIFFITH 59 WHO IS
RETIRING 9402220172 940222 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

BUGABOO CREEK STEAK HOUSE INC AN INITIAL OFFERING OF 15 MILLION COMMON
SHARES VIA TUCKER ANTHONY INC

CAROLINA FIRST CORP AN OFFERING OF 12 MILLION COMMON SHARES WITH AN
OVERALLOTMENT OPTION FOR 180000 ADDITIONAL SHARES VIA JC BRADFORD & CO
AND FOXPITT KELTON INC

DYNAGEN INC AN OFFERING OF 1350000 UNITS EACH UNIT CONSISTING OF THREE
COMMON SHARES AND A WARRANT TO PURCHASE TWO COMMON SHARES TRANSFERABLE
IMMEDIATELY UPON ISSUANCE WITH AN OVERALLOTMENT OPTION FOR 202500 UNITS
VIA RAS SECURITIES CORP AND THOMAS JAMES ASSOCIATES INC

EATON CORP A SHELF OFFERING OF UP TO 600 MILLION OF DEBT SECURITIES AND
STOCK VIA CS FIRST BOSTON LEHMAN BROTHERS AND MERILL LYNCH & CO

EMPRESAS ICA SOCIEDAD CONTROLADORA SA DE CV AN OFFERING OF 435 MILLION OF
CONVERTIBLE SUBORDINATED DEBENTURES WITH AN OVERALLOTMENT OPTION FOR 65
MILLION OF DEBENTURES VIA BARING SECURITIES INC AND ACCIONES Y VALORES DE
MEXICO SA DE CV

HANOVER DIRECT INC AN OFFERING OF 10 MILLION COMMON SHARES VIA MERRILL
LYNCH & CO AND ALEX BROWN & SONS INC

JDN REALTY CORP AN INITIAL OFFERING OF 59 MILLION COMMON SHARES VIA
ALEX BROWN & SONS AG EDWARDS & SONS INC JC BRADFORD & CO EQUITABLE
SECURITIES CORP AND INTERSTATE/JOHNSON LANE CORP

LANDRY'S SEAFOOD RESTAURANTS INC AN OFFERING OF 18 MILLION COMMON SHARES
VIA MONTGOMERY SECURITIES DEAN WITTER REYNOLDS INC AND JC BRADFORD & CO

NOVELLUS SYSTEMS INC AN OFFERING OF 15 MILLION COMMON SHARES WITH AN
OVERALLOTMENT OPTION FOR 225000 ADDITIONAL SHARES VIA HAMBRECHT & QUIST
INC BEAR STEARNS & CO AND MONTGOMERY SECURITIES

SAXON MORTGAGE SECURITIES CORP A SHELF OFFERING FOR 1 BILLION OF MORTGAGE
PARTICIPATION SECURITIES

SCANVEC CO AN INITIAL OFFERING OF TWO MILLION ORDINARY SHARES VIA FURMAN
SELZ INC

SOFTWARE PROFESSIONALS INC AN INITIAL OFFERING OF ONE MILLION COMMON
SHARES VIA LH ALTON & CO

VECTRA BANKING CORP AN INITIAL OFFERING OF 560000 COMMON SHARES AND
700000 SERIES A CUMULATIVE PREFERRED STOCK VIA DAIN BOSWORTH INC
9402220171 940222 TEXACO ENDS CHINA TALKS

WHITE PLAINS NY TEXACO INC SAID ITS TEXACO SHANGHAI INC SUBSIDIARY
AND SHANGHAI PETROLEUM CORP AGREED TO END NEGOTIATIONS BEGUN IN APRIL 1993

THE COMPANIES WERE DISCUSSING TERMS FOR JOINT DEVELOPMENT OF THE OFFSHORE
PING HU OIL AND NATURALGAS FIELD 250 MILES EAST OF SHANGHAI IN THE EAST
CHINA SEA

TEXACO SAID THE COMPANIES COULDN'T AGREE ON TERMS THAT WOULD MAKE THE
PROJECT COMMERCIALLY VIABLE FOR TEXACO AND SHANGHAI PETROLEUM DECIDED TO
DEVELOP THE FIELD ON ITS OWN 9402220170 940222 WHO'S NEWS UNION BANK
OF SWITZERLAND

UNION BANK OF SWITZERLAND ZURICH THIS INTERNATIONAL BANKING INSTITUTION
NAMED ROBERT MILLS 44 YEARS OLD CHIEF FINANCIAL OFFICER OF ITS NORTH
AMERICAN DIVISION IN NEW YORK REFLECTING THE CONSOLIDATION OF THE COMPANY'S
FINANCIAL FUNCTIONS MR MILLS WHO WILL BE RESPONSIBLE FOR FINANCE AND
CONTROL WAS FORMERLY A PARTNER OF KPMG PEAT MARWICK 9402220169 940222
CIBA DIVISION AGREES ON A VENTURE IN CHINA  SPECIAL TO THE WALL
STREET JOURNAL

BASEL SWITZERLAND CIBAGEIGY AG THE LARGE SWISS CHEMICAL AND
PHARMACEUTICAL GROUP SAID ITS ADDITIVES DIVISION REACHED AN AGREEMENT TO
SET UP ITS FIRST JOINTVENTURE OPERATION IN CHINA

THE NEW COMPANY SHANGHAI CIBA GAOQIAO CHEMICAL CO WILL BE BUILT IN PUDONG
IN SHANGHAI THE OTHER PARTNERS IN THE VENTURE ARE CHINA'S SHANGHAI GAO QIAO
PETROCHEMICAL CO AND JAPAN'S NIPPON ALKYL PHENOL CO TOKYO

CIBA WILL CONTROL 585 OF THE JOINTVENTURE COMPANY BOTH DIRECTLY AND
THROUGH ITS HOLDINGS IN NIPPON ALKYL PHENOL THE SWISS COMPANY SAID CIBA
SAID ITS TOTAL INVESTMENT IN THE PROJECT INCLUDING PLANNED EXPANSIONS WILL
BE ABOUT 30 MILLION

THE NEW PLANT WHICH WILL EMPLOY ABOUT 150 PEOPLE IS EXPECTED TO BEGIN
OPERATIONS IN 1997 THE PLANT WILL PRODUCE TWO OF CIBA'S PLASTIC
STABILIZERS IRGANOX 1010/1076 AND IRGAFOS 168 AS WELL AS THE INTERMEDIATE
SUBSTANCES REQUIRED TO PRODUCE THEM RAW MATERIALS FOR THE PRODUCTION WILL
BE PURCHASED LOCALLY CIBA SAID

UNTIL NOW OUR PRODUCTS HAVE BEEN IMPORTED INTO CHINA AND SUPPLIED TO
ENDUSERS WITH THE HELP OF OUR LIAISON OFFICES IN BEIJING AND SHANGHAI
KLAUS GRUNDMANN HEAD OF CIBA'S ADDITIVES DIVISION SAID WITH THIS JOINT
VENTURE WE WILL BE ABLE TO MANUFACTURE OUR TWO MOST IMPORTANT PRODUCTS FOR
CHINA IN CHINA

MR GRUNDMANN ADDED THAT BEING ABLE TO PRODUCE LOCALLY WOULD GIVE CIBA A
COMPETITIVE ADVANTAGE

ALTHOUGH THE JOINT VENTURE IS THE FIRST IN CHINA FOR CIBA'S ADDITIVES
DIVISION THE SWISS COMPANY'S SIX OTHER DIVISIONS ARE ALREADY PRESENT IN THE
COUNTRY

CIBA IS ACTIVE IN CHINA IN SEVERAL VENTURES INCLUDING IN THE AREAS OF
ELECTRONIC SCALES THROUGH METTLER TOLEDO ANIMAL HEALTH
PHARMACEUTICALS CONTACT LENSES PLANT PROTECTION AND PIGMENTS 9402220168
940222 INTERNATIONAL GRANADA MAKES OFFER FOR LWT

LONDON GRANADA GROUP PLC MADE A FINAL BID FOR LWT HOLDINGS PLC OF 784
PENCE 1159 A SHARE WHICH WOULD VALUE THE BROADCASTER AT 811 MILLION
12 BILLION

LWT SAID IT RECEIVED A LETTER FROM GRANADA LAST WEEK SAYING THE DEADLINE FOR
ACCEPTANCES IS FRIDAY

GRANADA'S EARLIER BID VALUED LWT AT ABOUT 776 MILLION IN ADDITION TO
TELEVISION LWT HAS INTERESTS IN TRAVEL AND PUBLISHING

GRANADA HAS INTERESTS IN TELEVISION HIGHWAY SERVICES BOWLING CENTERS
NIGHTCLUBS THEME PARKS AND A RENTAL BUSINESS 9402220167 940222 WHO'S
NEWS UPJOHN CO

UPJOHN CO KALAMAZOO MICH KENNETH M CYRUS 55 YEARS OLD SENIOR VICE
PRESIDENT SECRETARY AND GENERAL COUNSEL WAS NAMED AN EXECUTIVE VICE
PRESIDENT WITH THE SAME RESPONSIBILITIES AT THIS PHARMACEUTICAL CONCERN
ROBERT C SALISBURY 50 SENIOR VICE PRESIDENT FOR FINANCE AND CHIEF
FINANCIAL OFFICER WAS ALSO NAMED AN EXECUTIVE VICE PRESIDENT ROBERT R
GORMAN 49 YEARS OLD DIVISIONAL VICE PRESIDENT OF DISCOVERY RESEARCH WAS
PROMOTED TO VICE PRESIDENT AT THAT OPERATION 9402220166 940222 WHO'S
NEWS SALOMON INC

SALOMON INC NEW YORK ROLFGUNTHER THUMANN 44 YEARS OLD WAS NAMED A
VICE PRESIDENT IN THE ECONOMIC AND MARKET ANALYSIS GROUP OF SALOMON BROTHERS
INTERNATIONAL LTD IN FRANKFURT THE EUROPEAN SUBSIDIARY OF THIS SECURITIES
FIRM AND INVESTMENT BANK MR THUMANN WILL BE RESPONSIBLE FOR COVERAGE OF
ECONOMIC AND FINANCIAL TRENDS IN GERMANY A NEW POSITION MR THUMANN HAS
BEEN HEAD OF THE FISCAL AND MACROECONOMIC POLICY DIVISION OF THE FEDERAL
MINISTRY OF ECONOMICS IN BONN SINCE 1992 9402220165 940222 INTERNATIONAL
 NESTE STATOIL MERGER IS CLEARED

BRUSSELS THE EUROPEAN UNION COMMISSION CLEARED THE PETROCHEMICAL MERGER
OF FINLAND'S NESTE OY AND NORWAY'S DEN NORSKE STATS OLJESELSKAB KNOWN AS
STATOIL

THE EU COMMISSION SAID THAT ALTHOUGH NESTE AND STATOIL ARE IMPORTANT
OPERATORS ON THE PETROCHEMICAL MARKET THEIR COMBINED MARKET SHARE OF THE
OLEFIN AND POLYOLEFIN MARKETS MOST AFFECTED BY THE LINKUP WON'T BE MORE
THAN 15 9402220164 940222 TAKE TWO TABLESPOONS OF MUSTARD AND CALL IF
YOU DON'T FEEL BETTER  BY LARRY M GREENBERG STAFF REPORTER OF THE
WALL STREET JOURNAL

TORONTO ONTARIO'S SOCIALIZED HEALTHCARE SYSTEM HAS A NEW PRESCRIPTION
FOR PATIENTS WITH A COLD OR FLU DON'T BOTHER YOUR DOCTOR EAT CHICKEN SOUP

ONTARIO RESIDENTS GET FREE MEDICAL COVERAGE BUT OFFICIALS HERE COMPLAIN
THAT FREQUENT SNIFFLERS GO TO THE DOCTOR TOO MUCH CLOGGING UP THE
HEALTHCARE SYSTEM AND COSTING THE PROVINCE ABOUT 200 MILLION CANADIAN
DOLLARS US148 MILLION A YEAR SO NOW THE GOVERNMENT IS TRYING TO CONVINCE
COLD AND FLU SUFFERERS THAT THEY CAN CURE THEMSELVES WITHOUT PROFESSIONAL
ADVICE

A COLD LASTS A WEEK AND IF YOU SEE A DOCTOR IT LASTS SEVEN DAYS GOES ONE
GOVERNMENT ADVERTISEMENT THE CAMPAIGN TO REDUCE DOCTOR VISITS IS BEING
TESTED IN LONDON ONTARIO WHERE RESIDENTS WERE MAILED BROCHURES EXTOLLING
THE VIRTUES OF CHICKEN SOUP TO CLEAR A STUFFED NOSE THE BROCHURE RELATES
EGYPTIANS FAVOR MUSTARD GREEKS USE VINEGAR AND PEPPER RUSSIANS SWEAR BY
HORSERADISH AND SOUTH ASIANS DRINK A GINGER AND CORIANDER TEA

WE DON'T DENY A COLD IS A MISERABLE THING BUT WE'RE TRYING TO CONSERVE
DOLLARS AND PHYSICIAN TIME IT'S LIKE GETTING PEOPLE TO TURN OFF THE LIGHTS
TO CONSERVE ENERGY SAYS ELEANOR BROWNRIDGE WHO'S LEADING THE ONTARIO
PROGRAM IF SUCCESSFUL THE CAMPAIGN COULD SPREAD ACROSS THE PROVINCE BY
NEXT FALL'S FLU SEASON

WEANING PATIENTS FROM FREE MEDICAL CARE WILL TAKE MORE THAN SOUP AND
HORSERADISH SOME SAY MOST PEOPLE GO TO THE DOCTOR TOO MUCH IF THEY HAD
TO PAY FOR IT THEY'D GO MUCH LESS SAYS BRENDA WILLIS A REGISTERED NURSE
IN LONDON

PEOPLE VISIT A DOCTOR FOR MORE REASONS THAN JUST BEING SICK SOME PEOPLE ARE
LONELY THEY LIKE TO COME AND SCHMOOZE THEIR APPOINTMENT'S AT 3 PM THEY
COME AT 1 PM THERE'S MORE TO DO HERE THAN AT HOME SAYS STEVE GOTTESMAN
A FAMILY PRACTITIONER IN TORONTO

STILL OTHERS ARE SCARED AN ELDERLY PATIENT OF DR GOTTESMAN OTHERWISE
HEALTHY USED TO COME IN EVERY FRIDAY TO MAKE SURE HE WAS OK FOR THE
WEEKEND WHEN THE OFFICE WAS CLOSED THE VISITS ENDED AFTER A NEIGHBOR
BEGAN CHECKING ON THE MAN OVER THE WEEKEND

UNDER ANY HEALTHCARE SYSTEM DOCTORS AND NURSES SOMETIMES TREAT MORE THAN
THEIR PATIENTS' ILLNESSES SAYS MS WILLIS SOME OF THEIR LIVES ARE PRETTY
POOR MAYBE IT'S THE ONLY SYMPATHY THEY GET 9402220163 940222 CREDIT
MARKETS BOND BULLS SEE DANGER TURN BEARISH  FED'S RATE
INCREASE INFLATION JITTERS SPUR EMOTIONAL SELLOFF  BY THOMAS
T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE BOND BULLS ARE RUNNING SCARED LATELY AND INVESTORS ARE
GETTING TRAMPLED

SO EVEN IF BOND PRICES BOUNCE BACK FROM THEIR RECENT EMOTIONAL SELLOFF THE
LONGERTERM OUTLOOK IS CLOUDY ANALYSTS SAY AND SOME PROS BELIEVE THINGS
ARE GOING TO GET WORSE BEFORE THEY GET BETTER

YIELDS ON LONGTERM TREASURY BONDS SURGED TO 662 FRIDAY THEIR HIGHEST
SINCE JULY THE BOND MARKET CLOSED EARLY AT 2 PM EST THAT HASTILY
ARRANGED CLOSING FUELED SOME TALK STRONGLY DENIED BY BOND DEALERS THAT
THE DEALERS HAD FLED THE FIELD IN ORDER TO CUT THEIR LOSSES

NO MATTER WHY THE BOND MARKET CLOSED EARLY IT IS CLEAR THAT BOND INVESTORS
ARE NO LONGER GIVING THE GROWING US ECONOMY THE BENEFIT OF THE DOUBT ABOUT
INFLATION INFLATION IS BAD NEWS FOR BOND INVESTORS BECAUSE IT MAKES AN
INVESTMENT WITH A FIXED RATE OF RETURN LESS ATTRACTIVE

INVESTORS HAD THOUGHT THAT DESPITE THE ECONOMY'S GROWTH INFLATION WAS
REMAINING IN CHECK BUT NOW INVESTORS ARE WORRIED THAT INFLATIONARY
PRESSURES ARE INCREASING EVEN THOUGH MOST ECONOMISTS SAY THE OPPOSITE

THE MARKET IS READJUSTING TO A CHANGE IN PSYCHOLOGY COMMENTED JOHN
COSTAS HEAD OF GOVERNMENT TRADING AT CS FIRST BOSTON INC MOST WALL STREET
TRADERS HAVE NEVER SEEN SUCH BEARISH SENTIMENT BEFORE HE SAID

IT'S A BEAR MARKET PEOPLE HAVE STOPPED THE DENIAL PROCESS AND ARE
SELLING SAID PAUL MCCULLEY CHIEF ECONOMIST AT UBS SECURITIES INC

FOR THEIR PART OFFICIALS AT THE PUBLIC SECURITIES ASSOCIATION A TRADE
GROUP WHOSE MEMBERS INCLUDE THE PRIMARY DEALERS OF TREASURYS SAID THAT THE
MARKET CONDITIONS HAD NOTHING TO DO WITH THEIR RECOMMENDATION FRIDAY MORNING
THAT THE MARKET CLOSE EARLY ON THURSDAY THE PSA RECEIVED NUMEROUS QUERIES
ABOUT WHETHER IT WOULD RECOMMEND AN EARLY CLOSE IN ADVANCE OF THE PRESIDENTS
DAY WEEKEND BUT IT SAID THAT IT WOULDN'T

PSA OFFICIALS SAID THAT THEY DIDN'T REALIZE UNTIL FRIDAY MORNING THAT THE
CHICAGO BOARD OF TRADE HAD RECOMMENDED AN EARLY CLOSE OF THE FUTURES MARKET
EVEN THOUGH THE CBOT HAD SENT OUT A NEWS RELEASE ABOUT THE EARLY CLOSE NINE
DAYS EARLIER SO IN THE MIDST OF A PANICKY SELLOFF THE PSA ANNOUNCED THE
EARLY CLOSING THE US BOND MARKETS WERE CLOSED YESTERDAY FOR THE HOLIDAY

IN A CONVOLUTED WAY PERHAPS THEY FIGURED THAT NOT LEAVING IT OPEN TO THE
REGULAR HOUR ON FRIDAY WOULD HELP TO AVOID ANY MORE MISCHIEF SAID BARBARA
KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP

THERE'S NO CONNECTION BETWEEN THE MARKET PLUNGING AND THE PSA
RECOMMENDATION FOR AN EARLY CLOSE SAID CS FIRST BOSTON'S MR COSTAS WHO
IS ALSO VICE CHAIRMAN OF THE PSA'S PRIMARY DEALERS' EXECUTIVE COMMITTEE
WHICH RECOMMENDED THAT THE MARKET CLOSE EARLY AFTER CONSULTING OTHER WALL
STREET FIRMS FRIDAY MORNING THAT WOULD BE AN ABSURD INFERENCE TO DRAW
ADDED MR COSTAS

WHAT SPARKED ALL THE SELLING WAS THE FED'S MOVE EARLIER THIS MONTH TO RAISE
THE FEDERALFUNDS RATE WHICH BANKS CHARGE EACH OTHER ON OVERNIGHT LOANS TO
325 FROM 3 THE MOVE WAS SUPPOSED TO NIP INFLATIONARY PRESSURES IN THE
BUD AND IT MAY VERY WELL HAVE BUT INSTEAD OF INSPIRING CONFIDENCE IN BOND
INVESTORS THAT THE FED IS IN FACT FIGHTING INFLATION BEFORE IT BECOMES A
PROBLEM THE RATE BOOST HAS INVESTORS WONDERING WHEN THE NEXT RATE INCREASE
WILL BE AND WHETHER BOND YIELDS CAN STAY WHERE THEY ARE MUCH LONGER

MORE SO THAN AT ANY OTHER TIME IN THE PAST YEAR THE BOND MARKET WILL BE
CLOSELY LISTENING TO WHAT FED CHAIRMAN ALAN GREENSPAN HAS TO SAY ABOUT ALL
THIS HE IS SCHEDULED TO DELIVER HIS SEMIANNUAL HUMPHREYHAWKINS TESTIMONY
BEFORE A HOUSE BANKING SUBCOMMITTEE THIS MORNING

THERE ARE SEVERAL SIGNS THAT THINGS ARE LIKELY TO GET WORSE BEFORE THEY GET
BETTER ONE IS THE DOW JONES UTILITY AVERAGE WIDELY SEEN AS A CONTRARY
INDICATOR OF TRENDS IN LONGTERM BOND YIELDS IT MEASURES THE STOCKPRICE
CHANGES OF 11 ELECTRIC UTILITIES AND FOUR NATURALGAS COMPANIES MANY
ANALYSTS BELIEVE IT ANTICIPATES MAJOR CHANGES IN INTERESTRATE CYCLES
THAT'S BECAUSE UTILITIES TEND TO PAY HIGH DIVIDENDS AND OFTEN ATTRACT THE
KIND OF CONSERVATIVE YIELDORIENTED INVESTORS WHO ALSO BUY BONDS WHEN
INVESTORS EXPECT BOND YIELDS TO RISE THEY SELL OFF UTILITY STOCKS BETTING
THAT A RISE IN BOND YIELDS WILL MAKE THESE STOCKS LESS VALUABLE

FOR MUCH OF LAST YEAR THE UTILITY STOCKPRICE AVERAGE ROSE IN ADVANCE OF A
PRECIPITOUS DROP IN LONGTERM BOND YIELDS TO 579 IN OCTOBER FOR MUCH OF
THIS YEAR HOWEVER THE UTILITY AVERAGE HAS BEEN FALLING SINCE THE START OF
THE YEAR IT HAS DROPPED 1852 POINTS TO 20854 AS OF FRIDAY THE LOWEST
POINT IN 22 MONTHS

ANOTHER OMEN IS THE REVISIONS MANY ANALYSTS ON WALL STREET ARE MAKING TO
THEIR ROSY FORECASTS FOR INTEREST RATES THIS YEAR THE DAY THE FEDERAL
RESERVE RAISED SHORTTERM INTEREST RATES GOLDMAN SACHS & CO'S DIRECTOR OF
ECONOMIC RESEARCH ROBERT GIORDANO WAS PREDICTING ANOTHER DROP IN LONGTERM
INTEREST RATES TO THE LEVELS SEEN LAST YEAR BUT ON FRIDAY MR GIORDANO
TOLD THE DOW JONES NEWS SERVICE THAT HE WOULDN'T BE SURPRISED IF THE 30YEAR
BOND YIELD ROSE TO 7

ANOTHER CONCERN IS A FLOOD OF TREASURY SECURITIES SLATED TO BE SOLD THIS
WEEK THE TREASURY IS SCHEDULED TO SELL 17 BILLION OF TWOYEAR NOTES
TOMORROW AND 11 BILLION OF FIVEYEAR NOTES THURSDAY

MANY ON WALL STREET BELIEVE THAT PART OF WHAT WEIGHED DOWN THE MARKET LAST
WEEK WAS PRIMARY DEALERS UNLOADING LARGE HOLDINGS OF UNSOLD THREEYEAR AND
10YEAR NOTES AND 30YEAR BONDS FROM THE TREASURY'S HUGE QUARTERLY REFUNDING
THE WEEK BEFORE WITH INVESTORS WORRIED ABOUT INTEREST RATES WALL STREET
MAY FORCE THE GOVERNMENT TO PUSH YIELDS SUBSTANTIALLY HIGHER TO MAKE
UNDERWRITING THE TWO AUCTIONS WORTHWHILE

MANY ON WALL STREET THINK THE SELLOFF HAS BEEN OVERDONE ONE OF THEM IS MS
KENWORTHY OF DREYFUS SOME OF THIS IS AN OVERREACTION SHE SAID WE ALL
NEED TO DO A REALITY CHECK IF INVESTORS THINK THE FEDERAL RESERVE IS
GETTING SET TO RAISE SHORTTERM INTEREST RATES ANOTHER 1 TO 15 PERCENTAGE
POINTS TO FIGHT INFLATION THEY SHOULD BE CASHING OUT OF THE BOND MARKET
SHE SAID BUT I DON'T BELIEVE THAT IS HAPPENING SHE SAID THERE IS NOT
ENOUGH INCIPIENT INFLATION TO WARRANT THAT KIND OF TIGHTENING

THE PRICE OF 30YEAR BONDS HAS DROPPED TOO FAR AND THEY REPRESENT GOOD
VALUE MS KENWORTHY SAYS BUT SHE ADDS YOU HAVE TO BE PRETTY
STOUTHEARTED TO JUMP IN THERE NOW WHEN THE MARKET PSYCHOLOGY IS SO NASTY
MOREOVER SHE RECOMMENDS THAT INVESTORS IN JUNK BONDS WATCH THEIR HOLDINGS
CAREFULLY WITH STOCKS SELLING OFF JUNK BONDS MIGHT BE SUBJECT TO SOMEWHAT
OF A CORRECTION SHE SAID JUNK BONDS OFTEN TRADE LIKE STOCKS BECAUSE THEIR
PRICES ARE VERY SENSITIVE TO CHANGES IN THE HEALTH OF A COMPANY

THE BEST THING THAT HAPPENED TO BOND TRADERS FRIDAY WAS THAT THEY GOT TO GO
HOME EARLY FOR THE SECOND DAY IN A ROW PRICES OF US TREASURY SECURITIES
TOOK A SOUND BEATING AT THE HANDS OF INCREASINGLY BEARISH SENTIMENT

THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND SANK MORE THAN A POINT OR
MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 95 3/32 ITS YIELD
ROSE TO 662 FROM 654 ON THURSDAY OTHER MATURITIES WERE ALSO BATTERED
THE 10YEAR NOTE FOR EXAMPLE DROPPED MORE THAN 5/8 POINT AS ITS YIELD
SOARED TO 607 FROM 598 ON THURSDAY

TREASURYS MATURING IN MORE THAN FIVE YEARS WERE THE WORST PERFORMERS FRIDAY
TRADERS SAID THAT WAS BECAUSE INVESTORS WERE MOVING CASH OUT OF RISKIER
LONGERTERM SECURITIES AND INTO THE RELATIVE SAFETY OF THE SHORT END

ALSO DROPPING SHARPLY WERE MORTGAGEBACKED CORPORATE AND MUNICIPAL BOND
PRICES

SEVERAL CORPORATE JUNK BOND DEALS SET TO BE SOLD THIS WEEK MAY BE POSTPONED
UNTIL THE TREASURY MARKET QUIETS DOWN SYNDICATE OFFICIALS SAID

THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9402220162 940222 WHO'S
NEWS PLYGEM INDUSTRIES INC

PLYGEM INDUSTRIES INC NEW YORK THIS HOMEIMPROVEMENT PRODUCTS COMPANY
NAMED GARY A MASSEL 53 YEARS OLD SENIOR VICE PRESIDENT AND GENERAL
MANAGER A NEW POST MR MASSELL WHO WAS VICE PRESIDENT OF OPERATIONS AT
TENNECO INC'S PACKAGING CORP OF AMERICA UNIT WILL OVERSEE PLYGEM'S
INVESTMENTS IN THREE MIDWESTERN COMPANIES THAT MAKE VINYL SIDING AND WINDOW
PRODUCTS 9402220161 940222 CANADIAN FIRMS' QUARTERLY NET JUMPED AND
ANALYSTS EXPECT MORE OF THE SAME  BY MARK HEINZL STAFF REPORTER OF
THE WALL STREET JOURNAL

CANADIAN CORPORATE PROFITS CLIMBED SOLIDLY IN THE 1993 FOURTH QUARTER AND
ANALYSTS SEE THE TREND PICKING UP STEAM THIS YEAR

JEFFREY RUBIN CHIEF ECONOMIST OF SECURITIES FIRM WOOD GUNDY INC IN
TORONTO SEES EXPLOSIVE GROWTH IN CANADIAN PROFITS OVER THE NEXT TWO
YEARS FUELED BY HIGHER OUTPUT AND FIRMER RESOURCE PRICES

A WALL STREET JOURNAL SURVEY OF 112 EARLYREPORTING COMPANIES SHOWS COMBINED
FOURTHQUARTER PROFITS OF 924 MILLION CANADIAN DOLLARS US691 MILLION UP
42 FROM A YEAR EARLIER THE JUMP IN EARNINGS WAS PARTLY DUE TO FEWER
WRITEDOWNS TAKEN IN THE LATEST QUARTER COMPARED WITH THE YEAR BEFORE
SEVENTYFIVE OF THE COMPANIES SURVEYED POSTED HIGHER PROFITS QUARTER OVER
QUARTER

MR RUBIN SAID CANADIAN CORPORATE PROFITS ARE POISED TO SOAR ABOUT 90 FROM
THE FOURTH QUARTER OF 1993 TO THE FOURTH QUARTER OF 1995 CANADIAN PROFITS
HAVEN'T REBOUNDED AS STRONGLY AS US CORPORATE EARNINGS HAVE FROM THE
DEPTHS OF THE RECESSION OF THE EARLY 1990S AND AT LONG LAST MOST OF THE
ASSET WRITEDOWNS ARE BEHIND US HE SAID

THE ECONOMIC PICTURE WILL ALSO FUEL PROFIT GROWTH MR RUBIN ADDED
PREDICTING CANADA'S GROSS DOMESTIC PRODUCT WILL RISE ABOUT 4 THIS YEAR FROM
1993 PROFIT MARGINS DOMESTICALLY IN THE ECONOMY ARE IMPROVING AND THEY'RE
IMPROVING BECAUSE UNIT LABOR COSTS ARE FALLING AND THEY'RE FALLING BECAUSE
WE'RE HAVING VERY STRONG PRODUCTIVITY GROWTH STRONGER ECONOMIES ABROAD
SHOULD HELP BOOST RESOURCE PRICES AND MR RUBIN SAID THE LOW VALUE OF THE
CANADIAN DOLLAR AGAINST THE US DOLLAR HASN'T FULLY BEEN REFLECTED IN THE
EARNINGS NUMBERS YET CANADIAN EXPORTERS BENEFIT FROM A WEAKER CANADIAN
CURRENCY BECAUSE THEIR PRODUCTS ARE SOLD MOSTLY IN US DOLLARS

MR RUBIN SAID THE STAGE IS SET FOR THE TORONTO STOCK EXCHANGE'S 300STOCK
COMPOSITE INDEX TO TOP 5000 BY THE END OF NEXT YEAR UP FROM ITS CURRENT
LEVEL OF 4349

FRANK MERSCH A MUTUALFUND MANAGER WITH ALTAMIRA MANAGEMENT LTD IN
TORONTO ALSO EXPECTS CORPORATE PROFITS TO SWING HIGHER THIS YEAR BUT HE'S
MORE CAUTIOUS ABOUT THE STOCK MARKET VALUATIONS ARE GETTING A LITTLE BIT
MORE STRETCHED THAN WE'VE SEEN FOR THE LAST FOUR YEARS BUT THERE ARE
CERTAIN SECTORS THAT STILL SHOW GOOD MOMENTUM

BECAUSE OF THE LOW CANADIAN DOLLAR MR MERSCH LIKES ANYTHING THAT
EXPORTS IN THE STRENGTHENING NORTH AMERICAN ECONOMY INCLUDING COMPANIES
THAT EXPORT PULP AND PAPER STEEL AND NATURAL GAS HE CALLS THOSE REGIONAL
COMMODITIES AND HE STEERS CLEAR OF CANADIAN COMPANIES THAT EXPORT GLOBAL
COMMODITIES SUCH AS OIL OR METAL BECAUSE HE DOESN'T EXPECT JAPAN AND
GERMANY TO PROVIDE THE ECONOMIC STIMULUS NEEDED TO BOOST PRICES OF THOSE
COMMODITIES

SIXTEEN INDUSTRIAL COMPANIES IN THE SURVEY POSTED COMBINED PROFITS OF
C2055 MILLION IN THE FOURTH QUARTER UP FROM C138 MILLION A YEAR BEFORE
THE STEEL SECTOR BOOSTED BY STRONG AUTO SALES AND FIRMER SELLING PRICES
CONTINUED ITS UPSWING IN PROFITS INTEGRATED STEEL PRODUCER STELCO INC
EARNED C13 MILLION IN THE FOURTH QUARTER COMPARED WITH A LOSS OF C4
MILLION A YEAR EALIER PROFIT FOR COSTEEL INC JUMPED TO C74 MILLION FROM
C2 MILLION

RESULTS IMPROVED FOR FIVE BASEMETAL MINING COMPANIES SHOWING A COMBINED
LOSS OF C14 MILLION IN THE FOURTH QUARTER COMPARED WITH A LOSS OF C149
MILLION WHICH INCLUDED SEVERAL NONRECURRING CHARGES STILL METAL
INVENTORIES REMAIN HIGH AND PRICES WEAK AND ANALYSTS SAY FURTHER
IMPROVEMENT IN RESULTS FOR CANADIAN MINING CONCERNS REQUIRES A SOLID UPTURN
IN WORLD ECONOMIES

PROFITS FOR SEVEN GOLDMINING CONCERNS DROPPED TO C212 MILLION IN THE
FOURTH QUARTER FROM C506 MILLION A YEAR EARLIER RESULTS WERE SKEWED BY A
C49 MILLION NONRECURRING CHARGE TAKEN BY LAC MINERALS LTD WHICH POSTED A
LOSS OF C58 MILLION COMPARED WITH A PROFIT OF C57 MILLION

WEAKER OIL PRICES WEIGHED ON EARNINGS FOR NINE OIL AND GAS COMPANIES WHICH
SHOWED COMBINED PROFITS OF C1975 MILLION IN THE FOURTH QUARTER DOWN FROM
C259 MILLION A YEAR BEFORE COMPANIES WITH SIGNIFICANT NATURALGAS OUTPUT
SUCH AS PETROCANADA FARED BEST IN THE GROUP PETROCANADA'S FOURTHQUARTER
EARNINGS WERE C36 MILLION UP FROM C27 MILLION

THE FORESTPRODUCTS SECTOR SHOWED MIXED RESULTS TWELVE FORESTPRODUCTS
COMPANIES SHOWED A COMBINED LOSS OF C203 MILLION INCLUDING SEVERAL LARGE
NONRECURRING CHARGES COMPARED WITH A LOSS OF C1414 MILLION A YEAR BEFORE

NINE CONSUMERPRODUCTS COMPANIES SHOWED A COMBINED PROFIT OF C22 MILLION IN
THE FOURTH QUARTER DOWN FROM C345 MILLION A YEAR BEFORE 9402220160
940222 CHC HELICOPTER UN CONTRACT

ST JOHN'S NEWFOUNDLAND CHC HELICOPTER CORP SAID ITS CANADIAN
HELICOPTERS LTD SUBSIDIARY RECEIVED A UNITED NATIONS CONTRACT FOR THE
PROVISION OF FIVE IFREQUIPPED BELL 212 HELICOPTERS IN SOMALIA

TERMS WEREN'T DISCLOSED THE COMPANY SAID THE AIRCRAFT AND CREWS MUST BE IN
MOGADISHU SOMALIA BY MARCH 1

CHC NOTED THAT WITH THE CONTRACT IT IS WORKING FOR THE UNITED NATIONS IN
FOUR COUNTRIES WITH 16 AIRCRAFT 9402220159 940222 INTERNATIONAL MEXICO
FACES SLOW GROWTH OF ECONOMY  IN FOURTH PERIOD AN INCREASE OF
JUST 02 FELL BELOW EXPECTATION FOR 05 RISE  BY DIANNE SOLIS 
STAFF REPORTER OF THE WALL STREET JOURNAL

MEXICO CITY IN THE MIDST OF A POLITICAL CRISIS OVER THE INDIAN UPRISING
IN THE STATE OF CHIAPAS MEXICO RECEIVED MORE BAD NEWS ON THE ECONOMIC FRONT
OVER THE WEEKEND

THE GOVERNMENT RELEASED NUMBERS SHOWING THAT THE ECONOMY GREW A SCANT 02
IN THE FOURTH QUARTER BELOW ECONOMISTS' EXPECTATIONS OF A 05 INCREASE

FOR THE ENTIRE YEAR THE ECONOMY GREW JUST 04 THE WORST ECONOMIC
PERFORMANCE SINCE PRESIDENT CARLOS SALINAS AND HIS TEAM OF TECHNOCRATS TOOK
OFFICE MORE THAN FIVE YEARS AGO AS RECENTLY AS OCTOBER THE GOVERNMENT HAD
BEEN PREDICTING 11 GROWTH FOR THE YEAR THE SALINAS ADMINISTRATION STARTED
THE YEAR PLANNING ON AN INCREASE OF 25 TO 3 FOLLOWING A 26 RISE IN
1992

MANY ECONOMISTS SAY RELIEF SHOULD COME THIS YEAR WITH A 3 GROWTH RATE
THEY TIE THEIR OPTIMISM TO INCREASED SOCIAL SPENDING THAT SHOULD STEM FROM
THE UPRISING IN CHIAPAS AND TO A GENERAL ECONOMIC STIMULUS PLAN THAT
INCLUDES A MINIMUMWAGE INCREASE SOME ANALYSTS HOWEVER EXPECT A TARDY
TURNAROUND THAT WON'T MATERIALIZE UNTIL THE SECOND HALF

SO FAR THERE HAS REALLY BEEN NO SIGNAL OF THE ECONOMY TAKING OFF SAYS
JORGE SUAREZVELEZ A MANAGING DIRECTOR AT AFIN INTERNATIONAL SECURITIES IN
NEW YORK THE GOVERNMENT HAS TRIED TO REDUCE INTEREST RATES TO PRIME THE
ECONOMY MR SUAREZVELEZ SAID BUT HE ALSO SAID THAT BANKS WILL TRY NOT TO
CUT THEIR RATES TOO FAST BECAUSE THE SLOW ECONOMY IS ADDING TO THEIR
NONPERFORMING LOANS

PARTICULARLY HARDHIT IN 1993 WERE THE AUTO AND OIL INDUSTRIES TOP
MONEYEARNERS IN THIS DEVELOPING COUNTRY OF 85 MILLION PEOPLE THE AUTO
INDUSTRY CONTRACTED NEARLY 15 ACCORDING TO AN AUTO TRADE GROUP OIL
REVENUES LIKEWISE SLID IN THE FOURTH QUARTER ALONG WITH WORLD OIL PRICES

THE ECONOMIC PROBLEMS ESPECIALLY IN THE STATEOWNED OIL SECTOR WHICH
PROVIDES FINANCING FOR ABOUT A QUARTER OF MEXICO'S BUDGET COULD CAUSE
REAL TROUBLE BECAUSE THEY COULD CUT INTO TAX REVENUE ANY DECLINE COULD
ENDANGER PROGRESS THE GOVERNMENT HAS MADE IN BALANCING ITS BUDGET AND
REASSURING FOREIGN INVESTORS ABOUT MEXICO'S ECONOMIC CLIMATE

A PARTICULAR WORRY IS HOW THE GOVERNMENT WILL FINANCE CHIAPASINSPIRED
SOCIAL SPENDING THE GOVERNMENT HAS ALREADY SAID IT WILL SELL OFF ITS
REMAINING STAKES IN MEXICAN BANKS THIS YEAR FETCHING SOME 25 BILLION BUT
THERE IS SPECULATION THAT THE GOVERNMENT MAY EVEN NEED TO BEGIN SELLING
PIECES OF PETROLEOS MEXICANOS THE MAMMOTH OIL MONOPOLY ALREADY SMALL
TURNKEY CONTRACTS HAVE BEEN GIVEN OUT TO DRILLERS AND IN RECENT MONTHS
SEVERAL LAND RIGS HAVE BEEN SOLD IN WHAT SOME OPTIMISTS BELIEVE IS A
SLOWMOTION PRIVATIZATION

ECONOMISTS ASSUMING THAT THE GOVERNMENT WILL HAVE TO RUN A BUDGET DEFICIT
THIS YEAR HOPE IT CAN BE KEPT TO LESS THAN 1 OF THE GROSS DOMESTIC
PRODUCT

LUIS DONALDO COLOSIO THE PRESIDENTIAL CANDIDATE OF THE HERETOFORE
UNBEATABLE RULING PARTY WON'T MAKE ANY PROMISES IN A RECENT INTERVIEW HE
SAID I HAVE REJECTED EMPHATICALLY POPULISM AN APPROACH THAT PRODUCED
DEFICIT SPENDING I ALSO BELIEVE IN TRADE AS A VERY IMPORTANT INSTRUMENT IN
ELEVATING THE LIVING CONDITIONS OF PEOPLE BUT THE CANDIDATE ADDED BUDGET
SURPLUSES SHOULDN'T BECOME AN OBSESSION

NEARLY EVERY WEEK SINCE THE NEW YEAR'S DAY UPRISING PRESIDENT SALINAS HAS
ANNOUNCED ANOTHER SPENDING PROGRAM MORE AND MORE CIVIC GROUPS INCLUDING
FARMERS FROM THE MEXICAN INTERIOR AND THE BORDER STATE OF CHIHUAHUA ARE
FASTENING THEIR FREEMARKET FRUSTRATIONS TO THE LANDREFORM ISSUES OF THE
INDIAN UPRISING IN MEXICO'S SOUTHERNMOST STATE THUS GOVERNMENT SPENDING ON
AGRICULTURE IS EXPECTED TO NEARLY DOUBLE THIS YEAR

INVESTORS ARE STILL OPTIMISTIC DESPITE A CHIAPASINDUCED SLIDE EARLY IN THE
YEAR AND A SERIES OF SETBACKS IN RECENT DAYS MEXICAN STOCK PRICES ARE STILL
UP NEARLY 4 THIS YEAR

THE MAJOR REASON FOR THE SANGUINE SPIRIT IS THAT INTEREST RATES ARE
SLIPPING FOR THE FIRST TIME IN 15 YEARS RATES ON MEXICAN TREASURY BILLS
ARE BELOW 10 THE GOVERNMENT DEVELOPMENT BANK HAS ALSO LOWERED THE COST OF
BORROWING MONEY BY TWO PERCENTAGE POINTS IN A BROAD EFFORT TO EASE PROBLEMS
AMONG SMALL AND MEDIUMSIZED BUSINESSES THAT ARE FORCED TO COMPETE BECAUSE
OF THE NORTH AMERICAN FREE TRADE AGREEMENT

BUT IT REMAINS TO BE SEEN WHETHER LOWERED INTEREST RATES WILL BE ENOUGH TO
GET THE ECONOMY GOING AGAIN AND KEEP MEXICO ON TRACK THE RUNNING
NAFTA/CHIAPAS JOKE HERE IS THAT ON JAN 1 MEXICO THOUGHT IT'D WAKE UP IN
THE FIRST WORLD BUT FOUND ITSELF INSTEAD IN CENTRAL AMERICA 9402220158
940222 REVCO BUYS FIVE DRUG STORES

TWINSBURG OHIO REVCO DS INC SAID IT HAS ACQUIRED FIVE FRIENDLY DRUG
STORES IN THE GREATER CLEVELAND AREA

TERMS WEREN'T DISCLOSED

THE COMPANY SAID THE STORES WILL BE OPERATED AS REVCO DRUG STORES THE
ACQUISITION IS PART OF ITS STRATEGY TO STRENGTHEN ITS PRESENCE IN
NORTHEASTEARN OHIO IT ADDED

DURING THE PAST 12 MONTHS REVCO HAS ADDED 16 STORES IN NORTHEASTERN OHIO
BRINGING THE TOTAL NUMBER OF STORES TO 119 9402220157 940222 LETTERS TO
THE EDITOR STRICTLY SPEAKING

YOU APPARENTLY GOT A LITTLE CARRIED AWAY IN YOUR EDITORIAL DIATRIBE AGAINST
THE CLINTON FY 1995 BUDGET SPEND LIKE AN EGYPTIAN FEB 8 SEARCHING FOR
THE METAPHORICAL ROSETTA STONE AND OTHER MEANS TO DECIPHER THE DOCUMENT
MAYBE YOUR PROBLEM WAS IN YOUR PARSING THE NUMBERS TO MY KNOWLEDGE
NUMBERS CANNOT BE PARSED ONLY WORDS CAN 9402220156 940222 BUSINESS
WORLD IF EMPOWERMENT HAS LEFT THE BOOMERS SHORT  BY TIM W
FERGUSON

I ONCE WORKED FOR A PUBLISHER MORE LATITUDINAL THAN GENEROUS THE COMPANY
HAD A POLICY SINCE ABANDONED OF NO PENSIONS ITS FOUNDER BELIEVED
EMPLOYEES SHOULD BE FREE TO DECIDE HOW TO ALLOCATE THEIR PITTANCE WITHOUT
HIM AS NANNY

THIS HAD PHILOSOPHICAL APPEAL BUT THE TAX LAWS MADE IT A GHASTLY MISTAKE IN
PRACTICE IT CONSIGNED US TO DO OUR RETIREMENT SAVING WITH AFTERIRS
DOLLARS ONLY THE SMALLEST EMPLOYERS AND THOSE WITH A TRANSIENT WORK FORCE
WOULD STILL SENSIBLY SUBSCRIBE TO SUCH A POLICY

MY FORMER EMPLOYER SUBSEQUENTLY BEGAN COMBINING A 401K PROGRAM WITH ANNUAL
DISTRIBUTIONS TO SELFMANAGED EMPLOYEE ACCOUNTS THIS IS THE WAY MOST
BUSINESSES HAVE INITIATED OR SUPPLEMENTED RETIREMENT PROGRAMS SINCE THE
TRADITIONAL ANNUITY PENSION PLAN BECAME LESS VIABLE IN THE 1980S

IN A SENSE THE CONTEMPORARY PENSION IS A MODEL EMPOWERMENT DEVICE IT
AIMS TO FURTHER A SOCIAL OBJECTIVE INDEPENDENCE IN OLD AGE WITH A
FAIRLY INDIVIDUALIZED MECHANISM THAT ALLOWS PORTABILITY BETWEEN JOBS THE
EMPLOYER IS STILL MIXED UP IN IT ONLY INDIVIDUAL RETIREMENT ACCOUNTS AVOID
THAT BUT THE FORMULA CALLS FOR RESPONSIBILITY ON THE RECEIVING END AT THE
RISK OF PAINFUL CONSEQUENCES WE'D BE LUCKY TO GET AS MUCH OUT OF THIS
YEAR'S HEALTH CARE LAWMAKING

THE PROBLEM FOR THE SELFDIRECTED PENSION PARADIGM IS THAT SOME KEY PEOPLE
THINK IT'S FALLING WAY SHORT THE EVIDENCE SAY DOUBTERS INCLUDING
SECURITIES AND EXCHANGE COMMISSION MEMBER CARTER BEESE IS THE INSIDIOUS
FAILURE OF MANY BABY BOOMERS TO KEEP THEIR FUNDS FULLY AND SMARTLY INVESTED
THE RESULT CRITICS FEAR WILL BE A GENERATION DECIDEDLY POORER IN
RETIREMENT THAN ITS PARENTS ONCE AGGRIEVED THE WORRY GOES THIS GROUP WILL
DEMAND GOVERNMENT REMEDIES

THE ACCOMPANYING CHART FROM MR BEESE SPOTLIGHTS HIS CONCERN SEE
ACCOMPANYING CHART WSJ FEB 22 1994 OVER THE PAST FIVE YEARS
INVESTORS NEEDED TO BE IN STOCKS AS REPRESENTED BY THE S&P 500 AND LIPPER
GROWTH INDEXES TO REALIZE SERIOUS GAINS YES THIS WAS A BULL MARKET BUT
STOCKS OUTPERFORM OVER ANY MEANINGFUL STRETCH OF TIME THAT'S WHY
PROFESSIONAL MONEY MANAGERS TYPICALLY KEEP MOST OF THEIR ACCOUNTS IN
EQUITIES BUT ORDINARY AMERICANS PUT THEIR SELFDIRECTED PENSIONS INTO
LOWRISK BOND FUNDS OR GUARANTEED INVESTMENT CONTRACTS GICS THAT PAY
PEANUTS WHEN INTEREST RATES ARE FLAT THOSE AND CASH REPRESENTED HALF THE
PORTFOLIOS OF SUCH PENSIONS IN 1992 WITH STOCK IN EMPLOYEES' OWN COMPANIES
AN ADDITIONAL 21

THAT ISN'T GOING TO CUT IT SAY SOME ECONOMISTS AND ACTUARIES WITHIN 20
YEARS THEY SAY WE'LL BE HEARING FROM A POLITICALLY POWERFUL COHORT THAT
WILL FEEL SEDUCED AND ABANDONED SOCIAL SECURITY FOR A TYPICAL COUPLE OVER
AGE 65 NOW PAYS ONLY ABOUT 14000 A YEAR TODAY'S MIDDLEAGED MIDDLE CLASS
IS GOING TO EXPECT A LOT BETTER BUT APPARENTLY DOESN'T KNOW WHAT IT WILL
TAKE TO HAVE IT THE BABYBOOM POPULATION IS MOVING THROUGH ITS PEAK
EARNING YEARS TOWARD RETIREMENT AND TIME IS ON OUR SIDE BUT NOT FOR VERY
LONG MR BEESE TOLD ONE AUDIENCE

NOT EVERYONE HOLDS THIS DIRE VIEW THE CONGRESSIONAL BUDGET OFFICE LAST
SEPTEMBER FOUND THE BOOMERS TO BE IN BETTER SHAPE THAN THEIR PARENTS WERE AT
A SIMILAR POINT IN LIFE BUT THE CBO USED MEASUREMENTS FROM 1989 A PEAK
IN HOME PRICES WHICH DISTORTS THE PICTURE

THOSE EXPRESSING ALARM ABOUT THE SITUATION SUGGEST RESPONSES

 SOME WANT TO SHORE UP THE TRADITIONAL PENSION ARRANGEMENTS BY RELAXING
STRICTURES OF THE ERISA LAW THIS 1970S LEGISLATION WAS INTENDED TO
SAFEGUARD RECIPIENTS BUT REDUCED COVERAGE BECAUSE SO MANY COMPANIES SOUGHT
TO ESCAPE ITS CLUTCHES EASING THE REINS ON OLDFASHIONED ANNUITIES WOULD BE
FINE BUT THESE PLANS SOME VERY UNDERFUNDED ARE NOW CAUGHT IN SUCH A
WEB OF SHARED OBLIGATIONS THAT THEIR FUTURE IS IN DOUBT

 THE ALTERNATIVE FORM OF PENSION SELFDIRECTED COULD BE STRENGTHENED
IF EMPLOYERS STAYED MORE INVOLVED CORPORATIONS COULD BRIEF EMPLOYEES ON HOW
TO MEET THEIR EXPECTATIONS BUT THAT WOULD REQUIRE SOME RELIEF FROM LEGAL
LIABILITY WHEN EVERY INVESTMENT DOES NOT GO UP AND INDIVIDUALS SEEK TO FIX
BLAME FOR THEIR LOSSES

ALREADY THE MARKET IS CATCHING ON TO THE NEED FOR BETTER ADVICE BROKERAGE
HOUSES HAVE BEGUN ADVISORIES ALTHOUGH THEY TOO HAVE TO WATCH THE LEGAL
RESTRICTIONS ON OVERSTEPPING THEIR CUSTODIAL ROLES WITH ALL THE
PERSONALFINANCIAL PRESS AND SOFTWARE PACKAGERS CLAMORING FOR ATTENTION AS
WELL HOWEVER IT SHOULDN'T BE LONG BEFORE ANYONE HALF AWAKE IS AT LEAST AS
SAVVY ABOUT NEEDED YIELDS AS HE IS ABOUT SAY COMMON TAX DEDUCTIONS

 SOME ARGUE THAT THE BIG WINDOW FOR WITHDRAWAL FROM SELFDIRECTED
PENSIONS THE LUMPSUM DISTRIBUTION WHEN LEAVING A JOB NEEDS TO BE CLOSED
CERTAINLY IT WOULD BE NICE IF THE PAPERWORK BURDEN OF TRANSFERRING THESE
HOLDINGS TO A NEW JOB WERE EASED BUT LUMP SUMS CURRENTLY CAN BE USED TO
START A BUSINESS AS A SECOND CAREER AND IT WOULDN'T MAKE SENSE TO LOCK UP
SEEDS OF ENTREPRENEURISM

 THAT SAID PIGGYBANK RAIDS ARE NONETHELESS A SERIOUS SHORTCOMING THE
CULPRITS ARE PEOPLE WHO EVEN IF THEY'RE NOT NECESSARILY ON HARD TIMES ARE
DISPOSED TO LIVE HANDTOMOUTH IN RESPONSE SOME PEOPLE ARE PROPOSING
MANDATORY SAVINGS IN OTHER WORDS A NEW TAX THIS WOULD PROVIDE
UNIVERSAL COVERAGE UNDER A SORT OF SUPERSOCIAL SECURITY A FEW OTHER
NATIONS HAVE THIS KIND OF SAVINGS SCHEME THE RECORD IS NOT ONE OF STELLAR
RETURNS

IN THE ABSTRACT IT MIGHT BE GOOD TO SEE THAT EVERYONE PAYS HIS DUE AND NO
ONE IS LEFT AT THE END OF THE DAY WITH CAUSE TO CALL ON SOMEONE ELSE BUT
THAT IS NOT THE NATURE OF PROGRAMS SUBJECT TO US POLITICS THEY BECOME
MECHANISMS FOR REDISTRIBUTION AND CONTROL NOT FOR PROMOTION OF VIRTUE IF
WHAT WE FEAR MOST IS A GENERATION THAT WILL SEEK TO FORCE OTHERS TO MAKE UP
FOR ITS MISTAKES THE BEST THING TO DO NOW IS TO PASS CONSTITUTIONAL
BARRIERS TO SUCH A MAJORITARIAN GRAB

AT THE SAME TIME WE COULD ATTACK THE GENERAL FLAW OF UNDERSAVING BY
ENHANCING TAX CONCESSIONS THAT ARE A DEMONSTRABLE BOON TO THRIFT 401KS
AND IRAS FOR EXAMPLE AND WE COULD RAISE THE RETIREMENT THRESHOLDS FOR
SOCIAL SECURITY WHICH WOULD HAVE MODEST IMPACT BY ITSELF BUT COULD HAVE
MAMMOTH EFFECTS IF PENSIONS FOLLOW SUIT

THAT WOULDN'T SUCCEED IN MAKING EVERYONE COMFORTABLE IN OLD AGE BUT IT
WOULD IMPROVE THE LOT OF MOST PRUDENT PEOPLE AND IT WOULDN'T REQUIRE ANY
NANNIES 9402220155 940222 TWO BAARLES RESIST SOLVING A PROBLEM OF
LONG DIVISION  BELGIANDUTCH BORDER TOWNS LIKE HAVING IT BOTH WAYS
 WISH TO BE LEFT IN PIECES  BY DANA MILBANK STAFF REPORTER OF THE
WALL STREET JOURNAL

BAARLENASSAU NETHERLANDS AND BAARLEHERTOG BELGIUM IN THE DOORNBOS
HOUSEHOLD ON NIEUWSTRAAT HERE EVEN THE SMALLEST DOMESTIC TASK IS AN
INTERNATIONAL EVENT

WHEN MAY DOORNBOS AND HER HUSBAND RETIRE TO THEIR BEDROOM SHE SLEEPS IN
BELGIUM HE IN HOLLAND TO VISIT THE BATHROOM OR HER OLDEST CHILD'S ROOM
SHE MUST CROSS THE FRONTIER THE BORDER SPLITS HER LIVING ROOM DOWN THE
MIDDLE THE KITCHEN AT LEAST IS SOLIDLY DUTCH SO IS MRS DOORNBOS WHO
FIGURES SHE IMMIGRATES HUNDREDS OF TIMES A DAY

NOW THAT'S BORDERLESS EUROPE ONLY IT HAS BEEN LIKE THIS FOR CENTURIES IN
BAARLEHERTOG AND BAARLENASSAU ONE VILLAGE CONTAINING TWO NATIONS BY AN
ACCIDENT OF HISTORY BELGIAN BAARLEHERTOG IS A COLLECTION OF 21 ENCLAVES 
SOME ONLY A FEW METERS WIDE STRANDED FIVE MILES INTO THE NETHERLANDS AND
DISPERSED THROUGH THE DUTCH TOWN OF BAARLENASSAU EACH BAARLE HAS ITS OWN
CHURCH SCHOOL POLICE FORCE AND MAYOR THE 8000 RESIDENTS OF BOTH TOWNS 
6000 IN THE DUTCH SECTION 2000 IN THE BELGIAN HAVE LIVED IN PEACE FOR
YEARS SHARING ROADS SEWERS A COMMON TONGUE DUTCH AND BOUNDARIES THAT
SPLIT BLOCKS OFTEN HOUSES IN TWO

BUT NOW AS THE REST OF EUROPE COMES TOGETHER THE BAARLES ARE BEING DRIVEN
APART THE DUTCH PROVINCE OF NOORD BRABANT WANTS TO MERGE BAARLENASSAU WITH
OTHER DUTCH VILLAGES PROMPTING BELGIAN FEARS OF DUTCH DOMINATION OVER
BAARLEHERTOG AND A NATIONALIST UPROAR NOT HEARD IN THESE PARTS SINCE THE
BELGIAN UPRISING AGAINST HOLLAND 150 YEARS AGO THE DUTCH OF BAARLENASSAU
FEAR THE MERGER WITH OTHER TOWNS WILL MEAN LOSING TAX DODGES SUNDAY
SHOPPING PRIVILEGES AND OTHER PERKS THAT COME WITH HAVING A FOREIGN COUNTRY
IN THEIR TOWN

THE DUTCH PROVINCIAL GOVERNMENT SAYS IT HAS NO CHOICE IT IS FOLLOWING AN
ORDER FROM THE NATIONAL GOVERNMENT TO COMBINE SMALL VILLAGES TO MAKE LOCAL
GOVERNMENT MORE EFFICIENT I DON'T EXPECT THERE WILL BE ANOTHER SOLUTION
SAYS GUS ESMEER A DUTCH PROVINCE OFFICIAL

THE FUROR HAS SOUNDED A CALL TO ARMS OF SORTS IN BELGIUM THE PROVINCIAL
GOVERNMENT IN ANTWERP SENT A DELEGATION TO LODGE A COMPLAINT WITH THE DUTCH
PROVINCE IT PLANS ANOTHER MEETING AND IF STILL UNSUCCESSFUL WILL CALL ON
THE GOVERNMENT IN BRUSSELS TO APPEAL THE DECISION TO THE DUTCH NATIONAL
GOVERNMENT IN THE HAGUE

IT WILL BE A FIASCO WARNS BAARLEHERTOG MAYOR ALFONS CORNELISSEN WHO
CROSSES THE BORDER FOUR TIMES ON HIS WAY TO TOWN HALL THE NATIONAL FEELING
IS COMING UP AGAIN AND THE RISK IS IT WILL BECOME FANATIC

A COMMITTEE OF DUTCH AND BELGIAN BAARLE RESIDENTS WROTE 1300 LETTERS OF
PROTEST TO NOORD BRABANT AND SENT A BUSLOAD OF ANGRY CITIZENS TO THE
CAPITAL THE GROUP BACKED BY 97 SUPPORT IN A LOCAL NEWSPAPER POLL ISSUED
A 28PAGE PLEA FOR AN INDEPENDENT BAARLENASSAU AND A POSTER WARNING THAT
THOSE WHO MESS WITH THE SIAMESE TWINS FROM BAARLE WILL BE ATTACKED BY
LIONS

IT'S AN EMOTIONAL ISSUE SAYS BAARLENASSAU MAYOR JAN PMM HENDRIKX WHO
ALSO OBJECTS TO HIS PROVINCE'S PLAN THE SITUATION HAS BEEN THIS WAY FOR
1000 YEARS NOW THEY'RE CHANGING IT AND WE DON'T WANT THAT

A FARMING VILLAGE FOUNDED IN 992 BAARLE WAS SPLIT IN FEUDAL TIMES WHEN THE
DUKE OF BRABANT GAVE SOME PIECES OF HIS LAND TO THE COUNTS OF NASSAU BUT
KEPT THE INHABITED PARTS BORDERS BETWEEN THE DUKE'S LAND NOW PART OF
BELGIUM AND THE COUNTS' LAND NOW IN HOLLAND WERE FORMALIZED IN 1648 BY
THE TREATY OF WESTPHALIA AND CONFIRMED IN 1843 WHEN THE BORDER BETWEEN
BELGIUM AND HOLLAND WAS DRAWN

THE TWO NATIONS HAVE TRIED OFTEN AND WITHOUT SUCCESS TO DRAW A CLEAN BORDER
IN THE AREA MEANWHILE RESIDENTS MUST DEPEND ON COLORCODED STREET ADDRESS
PLAQUES TO TELL A HOUSE'S NATIONALITY EACH HOME HAS DUTCH WATER AND GAS
BELGIAN CABLE TV AND ELECTRICITY AND TELEPHONE SERVICE ARE DETERMINED BY
THE LOCATION OF A HOME'S FRONT DOOR THE TWO TOWNS ARE HAGGLING OVER HOW
MUCH SEWAGE EACH SHOULD PROCESS FROM THEIR SHARED PIPES AND ARGUMENTS OVER
TRASHBAGGING PRACTICES HAS LED TO GARBAGE TRUCKS FROM BOTH COUNTRIES
LEAPFROGGING DOWN THE SAME STREETS

THE TWO FIRE DEPARTMENTS IN BAARLE ALSO HAVE STRUCK SPARKS WHEN FIRE BROKE
OUT IN A BELGIAN HOME THAT STRADDLES A BORDER ON MARIA VERHOEVEN STRAAT
DUTCH AUTHORITIES GOT THE CALL TO PUT OUT THE BLAZE AN ANGRY BELGIAN FORCE
ARRIVED SHOUTING THAT WAS OUR FIRE JACK HAAGEN THE DUTCH FORCE'S
COMMANDER SAYS THE BELGIANS WERE JUST ENVIOUS

BUT FOR THE MOST PART BAARLE RESIDENTS LIKE THE ARRANGEMENT AND THE MANY
LEGAL AND TAX LOOPHOLES THEY HAVE DISCOVERED BECAUSE OF ITS LINK TO A
BELGIAN TOWN BAARLENASSAU IS THE ONLY VILLAGE IN HOLLAND WHERE SUNDAY
SHOPPING IS LEGAL THE DUTCH COME FROM UP TO 100 KILOMETERS AWAY TO SHOP IN
BAARLE'S 200 STORES

MANY DUTCH DEFECT TO THE BELGIAN SIDE OF TOWN FOR LOWER INCOME AND PROPERTY
TAXES TO AVOID TAXES ON INTEREST INCOME THE DUTCH AND BELGIANS BOTH KEEP
THEIR MONEY IN THE OTHER NATION'S BANKS WHEN BAARLEHERTOG RESIDENTS WANTED
TO SEE A MOVIE THAT WAS BANNED IN BELGIUM BECAUSE OF NUDITY THEY SHOWED IT
IN THE MAIN HALL OF THE BAARLE SOCIAL CENTER WHICH STRADDLES THE BORDER
THE TWO TOWNS SHARE YOUTH CLUBS A TOURIST OFFICE AND LIBRARY AND THEY HAVE
A PHONE LINK SO THAT CROSSTOWN CALLS DON'T REQUIRE INTERNATIONAL DIALING
STORES FLY BOTH FLAGS AND ACCEPT BOTH CURRENCIES

BOTH BELGIANS AND DUTCH IN BAARLE FEAR THE DUTCH PROVINCE'S CONSOLIDATION
PLAN WILL UNDERMINE THEIR COOPERATION BY FORCING BAARLENASSAU TO JOIN OTHER
DUTCH TOWNS THAT DON'T CARE ABOUT THE ENCLAVES THEY ALSO FEAR CONSOLIDATION
WILL FORCE BAARLENASSAU TO GIVE UP ITS SUNDAY SHOPPING RIGHTS AND OTHER
BENEFITS OF BEING A TWONATION TOWN ALL THE ACTIVITIES WILL FALL APART
SAYS FONS VAN TILBURG A DUTCH ACCOUNTANT LEADING THE PROTEST CAMPAIGN

UNTIL THEN THOUGH BAARLE RESIDENTS ARE STILL FINDING WAYS TO EXPLOIT THEIR
FRONTIER DE SWART AUTOSCHADE A CARREPAIR SHOP THAT SITS ON THE BORDER
FACED LEGAL ACTION FROM BAARLENASSAU BECAUSE OF A DUTCH BAN ON SMOKESTACKS
NEAR HOMES SO DE SWART ADDED A TWOFOOT EXTENSION TO ITS CHIMNEY ENOUGH
TO MAKE IT ANGLE INTO BELGIAN AIR SPACE THE EXHAUST IS NO LONGER UNDER
DUTCH JURISDICTION IT'S NONSENSE SAYS MECHANIC JAN KOOREMANS BUT IT'S
THE LAW 9402220154 940222 REVIEW & OUTLOOK EDITORIAL A TEST FOR
RILEY

LATE LAST YEAR WE FLAGGED A DISPUTE OVER COLLEGE ACCREDITATION AND
DIVERSITY THE INSTIGATOR IS THE WESTERN ASSOCIATION OF SCHOOLS AND
COLLEGES WHICH SANCTIFIES ACADEMIC PROGRAMS AT INSTITUTIONS OF HIGHER
LEARNING IN CALIFORNIA HAWAII AND GUAM

AT WASC'S MEETING IN SAN FRANCISCO TOMORROW IT IS EXPECTED TO PUSH AHEAD
WITH A STANDARD THAT JUDGES ITS COLLEGES BY SHALL WE SAY THE COLORS OF
THEIR SKINS ITS PROPOSAL HAS GONE THROUGH MULTIPLE DRAFTS BUT THE ESSENCE
REMAINS THE PROMOTION OF PREFERENTIAL TREATMENT MULTICULTURALISM AND
ENFORCED NICENESS TO MEMBERS OF ALL PROTECTED CLASSES OF THIS SOCIETY

WOE BE THE SCHOOL THAT'S CAUGHT WITH A COMPLAINT AGAINST THE STRAIGHT WHITE
MALES IN CHARGE WASC AS ONE OF THE QUASIOFFICIAL REGIONAL BODIES OF ITS
KIND ACROSS THE NATION CAN HOLD UP OR TAINT ACCREDITATION WHILE IT FORCES
THE INSTITUTION TO HOST VISITS BY ITS GRIPE COLLECTORS

THE COLLEGES TRULY VULNERABLE TO THIS INTIMIDATION ARE THE TINY OFTEN
RELIGIOUSLYBASED LIBERALARTS PLACES THAT DOT THE LANDSCAPE IN THAT
LIGHT IT'S HEARTENING TO NOTE THAT THE BIG PRESTIGE INSTITUTIONS OF THE
WEST HAVE BOMBARDED WASC WITH REQUESTS THAT IT CALL OFF THE DOGS

STANFORD PRESIDENT GERHARD CASPER'S WARNING WAS DIRECT THE DIVERSITY
STANDARD AND OTHER INTRUSIVE MEASURES ALL RAISE SERIOUS QUESTIONS ABOUT THE
FUTURE OF WASC WHICH STANFORD WILL BE MONITORING CLOSELY ISSUES ADDRESSED
IN THE UNIT'S MANIFESTO ARE THE INTERNAL BUSINESS OF A SCHOOL MR CASPER
WROTE AND HE WELL KNOWS IT AS STANFORD ITSELF CONTINUES TO BE VEXED BY
SUGGESTIONS THAT IT HAS COMPROMISED ACADEMIC MEASURES TO ATTAIN A MORE
DESIRED MIX ON CAMPUS

THE PRESIDENTS OF CAL TECH THE UNIVERSITY OF SOUTHERN CALIFORNIA AND 
TAKE NOTE THE SAN FRANCISCO CONSERVATORY OF MUSIC HAVE MORE OR LESS
SECONDED MR CASPER'S COMMENTS THIS MONTH BUT NONE OF THIS MAY MAKE A
DIFFERENCE TO THE ISOLATED AND ENTRENCHED BOARD OF WASC IF IT CANNOT BE
CONVINCED IT WILL REMAIN TO US SECRETARY OF EDUCATION RICHARD RILEY TO
PUT THE KIBOSH ON THE PLAN SO FAR NO WORD FROM WASHINGTON 9402220153
940222 PEPPERAND SALT

BY METHODS MUSICALLY CLASSICAL

ARE POLY OR MONO OR UN 9402220152 940222 BROKERAGE UNIT OF BANK SLASKI
 LOSES ITS LICENSE  POLAND'S SECURITIES AGENCY ACTS AFTER PRICE
SURGE FOLLOWING RECENT IPO  BY DANIEL MICHAELS SPECIAL TO THE
WALL STREET JOURNAL

WARSAW POLAND'S SECURITIES COMMISSION REVOKED THE BROKERAGE LICENSE OF
BANK SLASKI SA AND ASKED PROSECUTORS TO INVESTIGATE POSSIBLE STOCKPRICE
MANIPULATION DURING THE BANK'S INITIAL WARSAW STOCK EXCHANGE LISTING

THE COMMISSION REPORTED LAST WEEK THAT IT HAD FOUND THAT ONLY BANK EMPLOYEES
AND MANAGEMENT WERE ABLE TO TRADE SHARES DURING THE STOCK'S FIRST DAY OF
LISTING ON JAN 25

WE HAVE FOUND THAT ON THE FIRST LISTING THE BANK'S MANAGEMENT AND
EMPLOYEES WERE SELLING BECAUSE ONLY THEY HAD THEIR SHARE CERTIFICATES
CONFIRMED SAID LESLAW PAGA COMMISSION CHAIRMAN ACCORDING TO REUTER NEWS
SERVICE THE COMMISSION DECIDED TO REPORT TO THE PROSECUTORS A POSSIBLE
PRICE MANIPULATION BECAUSE THE BANK'S MANAGEMENT WAS AWARE OF THE SITUATION
AND DIDN'T ASK THE BOURSE TO POSTPONE THE ISSUE'S FIRST LISTING MR PAGA
WAS QUOTED AS SAYING BANK SLASKI'S BROKERAGE OFFICE WHICH IS POLAND'S
LARGEST ACTED AS ISSUING AGENT FOR THE PUBLIC OFFERING

THE REGULATORS' MOVE MARKS ANOTHER DRAMATIC EPISODE IN THE POLITICALLY
CHARGED SAGA OF BANK SLASKI'S PRIVATIZATION BANK SLASKI'S SHARE PRICE ROSE
TO 67 MILLION ZLOTYS 306 OR ROUGHLY 13 TIMES ON THE JAN 25 LISTING
FROM THE 500000ZLOTY INITIAL OFFERING PRICE OF DECEMBER THE UNPRECEDENTED
RUNUP DREW STRONG CRITICISM OF THE FINANCE MINISTRY'S SHAREPRICING METHODS
BY MEMBERS OF PARLIAMENT THE MEDIA AND THE GENERAL PUBLIC THEY ALL ARGUED
THAT THE STATE'S TREASURY HAD LOST OUT ON MILLIONS OF DOLLARS IN POTENTIAL
REVENUE ROUGHLY 800000 INVESTORS BOUGHT SLASKI STOCK IN DECEMBER CREATING
SUCH DEMAND THAT EACH WAS ALLOWED TO BUY ONLY THREE SHARES AT MOST

LAST THURSDAY'S ACTIONS BY THE SECURITIES COMMISSION INDICATES THAT THE
STRATOSPHERIC STOCK PRICE WAS ARTIFICIALLY INDUCED BY TRADING IRREGULARITIES
AND A SHORTAGE OF TRADABLE SHARES ONLY 03 OF BANK SLASKI'S SHARES CROSSED
THE WARSAW EXCHANGE ON JAN 25 IN PART BECAUSE FEW SHARES HAD BEEN PROPERLY
CERTIFIED TO BE TRADED STOCKS OF PRIVATIZED POLISH COMPANIES GENERALLY
BEGIN TRADING ON THE WARSAW EXCHANGE SEVERAL WEEKS AFTER THEIR SALE THROUGH
INITIAL PUBLIC OFFERINGS THE TIME IS NECESSARY TO CERTIFY PAPERWORK AND
CONFIRM PROPER SHARE OWNERSHIP

IN REVOKING BANK SLASKI'S BROKERAGE LICENSE THE SECURITIES COMMISSION
ACCUSED THE BANK'S BROKERAGE OFFICE OF PRIVILEGED TREATMENT OF CERTAIN
INVESTORS OF ACCEPTING ORDERS FROM CLIENTS WHO LACKED ADEQUATE CAPITAL IN
THEIR ACCOUNTS TO BACK THE ORDERS OF A LACK OF SUPERVISION AND OF DELAYS
IN CONFIRMING SHARE CERTIFICATES THE SHARECERTIFICATE ISSUING DELAY MEANT
THAT MOST OF THOSE WHO BOUGHT SHARES IN DECEMBER WERE UNABLE TO TRADE THEM
UPON THE STOCK'S LISTING THIS HELPED CREATE THE SPARSE SHARE TRADING THAT
PUSHED PRICES SO HIGH AS MORE SHARES HAVE COME ON THE MARKET THE STOCK'S
PRICE HAS DROPPED TO 45 MILLION ZLOTYS

THE SECURITIES AGENCY GAVE BANK SLASKI'S BROKERAGE OFFICE SIX MONTHS TO WIND
UP ITS BUSINESS AND TRANSFER ITS ACCOUNTS TO OTHER BROKERS

WE GAVE THE BANK SO MUCH TIME TO WIND UP THE BROKERAGE'S OPERATIONS TO
ENSURE THAT OUR DECISION WOULDN'T HURT INVESTORS REUTERS QUOTED MR PAGA
AS SAYING BUT EVEN WITH THAT MUCH TIME THE TASK MAY PROVE DIFFICULT AT
THE END OF 1993 THE WARSAW EXCHANGE'S 30 BROKERAGE FIRMS HELD 280000
BROKERAGE ACCOUNTS BANK SLASKI'S BROKERAGE OFFICE HELD ROUGHLY 35000 OF
THESE

THE BANK SLASKI LISTING MORE THAN DOUBLED THE NUMBER OF SHAREHOLDERS ON THE
WARSAW EXCHANGE SINCE BANK SLASKI'S BROKERAGE OFFICE HANDLED THIS OFFERING
IT HAS TAKEN MUCH OF THE NEW BUSINESS BUT ALL BROKERAGE OFFICES FACE
ENORMOUS BACKLOGS FOR NEW ACCOUNTS

THE COMMISSION ALSO GAVE THE BANK TWO WEEKS TO APPEAL ITS DECISION A
SUBSEQUENT COMMISSION MEETING ON FEB 23 WILL DISCUSS DETAILS OF THE
BROKERAGE OFFICE'S LIQUIDATION

BANK SLASKI OFFICIALS WEREN'T AVAILABLE FOR COMMENT

IN ACCUSING BANK SLASKI OF IRREGULARITIES THE COMMISSION INITIALLY APPEARS
TO HAVE DRAWN SOME OF THE HEAT OFF THE FINANCE MINISTRY PRIME MINISTER
WALDEMAR PAWLAK USED THE STORM SURROUNDING BANK SLASKI'S INITIAL PRICE RISE
TO FIRE STEFAN KAWALEC DEPUTY FINANCE MINISTER UNDER WHOSE JURISDICTION
THE PRIVATIZATION WAS HANDLED HOWEVER MOST ANALYSTS AND MR KAWALEC
POINTED TO POLITICAL REASONS FOR HIS DISMISSAL A FIGHT OVER MR KAWALEC'S
DISMISSAL BETWEEN FORMER FINANCE MINISTER MAREK BOROWSKI AND PRIME MINISTER
PAWLAK PROMPTED MR BOROWSKI TO TENDER HIS RESIGNATION FEB 4 IN ACCEPTING
THE RESIGNATION THE PREMIER SPARKED A SHOWDOWN WITHIN THE RULING COALITION
LAST WEEK 9402220151 940222 WHO'S NEWS EVERGREEN BANCORP INC

EVERGREEN BANCORP INC GLENS FALLS NY GEORGE W DOUGAN 54 YEARS
OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING
COMPANY EFFECTIVE MARCH 7 MR DOUGAN WILL BE RESPONSIBLE FOR OVERALL
STRATEGIC PLANNING MANAGEMENT AND PERFORMANCE OF THE HOLDING COMPANY AND
ITS THREE SUBSIDIARY BANKS FIRST NATIONAL BANK OF GLENS FALLS EVERGREEN
BANK IN ALBANY AND KEESEVILLE NATIONAL BANK OF CLINTON COUNTY MR DOUGAN
HAD BEEN CHAIRMAN OF BANK OF BOSTONFLORIDA SINCE JUNE 1992 MR DOUGAN
SUCCEEDS WILLIAM L BITNER III WHO AT 61 RETIRED AS PRESIDENT AND CHIEF
EXECUTIVE IN SEPTEMBER 1993 MR BITNER WAS SUCCEEDED AS CHAIRMAN IN JUNE BY
EDWARD F ALLARD 9402220150 940222 LASER VIDEO NETWORK ENTERS PACT

NEW YORK LASER VIDEO NETWORK INC SAID IT ENTERED AN AGREEMENT TO PROVIDE
ITS MUSICVIDEO PROGRAMMING TO MARRIOTT INTERNATIONAL INC'S HIGHER
EDUCATION SERVICES SUBSIDIARY

TERMS WEREN'T DISCLOSED

THE COMPANY SAID IT WILL PROVIDE THE MARRIOTT UNIT WITH ITS LASER VIDEO
COLLEGE NETWORK AN INTERACTIVE MULTIMEDIA MUSICVIDEO ENTERTAINMENT SYSTEM
THAT SHOWS MUSIC VIDEOS AND COMMERCIALS FROM SPONSORS SUCH AS COCACOLA CO
MCI COMMUNICATIONS CORP AND CHEVROLET A UNIT OF GENERAL MOTORS CORP

MARRIOTT HIGHER EDUCATION OPERATES UNIVERSITY AND COLLEGE DINING SERVICES
9402220149 940222 WENDY'S EXPECTS GROWTH TO CONTINUE EARNINGS WILL MEET
ANALYSTS' FORECASTS  BY DAVE KANSAS STAFF REPORTER OF THE WALL
STREET JOURNAL

PITTSBURGH WENDY'S INTERNATIONAL INC SAID THE DIFFICULT WINTER WEATHER
SHOULDN'T AFFECT ITS CURRENT QUARTER AND THE COMPANY SEES CONTINUED STRONG
GROWTH FOR ITS CHAIN OF HAMBURGERORIENTED RESTAURANTS

JAMES W NEAR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE FASTFOOD CHAIN
SAID IN AN INTERVIEW THAT HE WAS CONFIDENT THE COMPANY WOULD MEET ANALYSTS'
EXPECTATIONS FOR THE FOURTH QUARTER AND THE YEAR ACCORDING TO FIRST CALL
ANALYSTS' CONSENSUS IS 17 CENTS A SHARE FOR THE QUARTER AND 76 CENTS A SHARE
FOR THE YEAR

IN THE 1992 FOURTH QUARTER WENDY'S REPORTED NET INCOME OF 147 MILLION OR
14 CENTS A SHARE ON SALES OF 3059 MILLION IN 1992 THE COMPANY REPORTED
NET INCOME OF 647 MILLION OR 64 CENTS A SHARE ON SALES OF 124 BILLION

IT'S BEEN A COLD WINTER BUT I THINK WE'LL STILL BE FINE MR NEAR SAID
WE HAD A GOOD YEAR IN 1993 AND I THINK SHAREHOLDERS WILL BE PLEASED WITH
THE RESULTS MR NEAR ALSO SAID HE WAS CONFIDENT ABOUT 1994 PROJECTIONS OF
91 CENTS A SHARE AND DESPITE THE POOR FIRSTQUARTER WEATHER HE STILL
EXPECTS THE COMPANY TO STICK TO ITS 20 GROWTH GOALS

WHILE WENDY'S CONTINUES TO GROW AT A STRONG CLIP THE HAMBURGER CHAIN FAILED
TO MEET ITS 1993 BUILDING GOALS IN ITS ANNUAL LETTER TO SHAREHOLDERS
WENDY'S SAID IT WANTED TO OPEN OR HAVE UNDER CONSTRUCTION 350 RESTAURANTS IN
1993 BUT MR NEAR SAID ONLY 310 RESTAURANTS OPENED OR WERE UNDER
CONSTRUCTION IN THE YEAR

IT JUST TAKES MORE TIME TODAY THAN IT USED TO TAKE MR NEAR SAID WE
HAVE A LOT OF THINGS IN THE HOPPER BUT WE'RE WAITING ON PERMITS AND OTHER
APPROVALS WE USED TO BE ABLE TO DO THE DEAL IN 30 DAYS BUT NOW IT CAN TAKE
UP TO A YEAR TO GET THE NECESSARY PERMITS

SLOWERTHANEXPECTED BUILDING PLANS MAY MAKE A 5000STORE GOAL BY 1995 LESS
LIKELY THAN ORIGINALLY THOUGHT BUT MR NEAR INSISTED THAT THE 5000STORE
GOAL IS FOR THE MID1990S PERHAPS IN EARLY 1996 MEANTIME LET'S THINK
ABOUT 800 STORES A YEAR AND THINK ABOUT WHEN WE COULD GET TO 8000 STORES
HE SAID

MR NEAR'S EXPANSIONIST VISION STEMS FROM WENDY'S LIGHT PENETRATION IN
SEVERAL REGIONS OF THE US AND THE GROWING INTERNATIONAL MARKET WENDY'S
HAS A STRONG PRESENCE IN THE MIDWEST BUT STILL LACKS NUMBERS IN THE WEST
AND THE SOUTHEAST MR NEAR SAID

INTERNATIONALLY MR NEAR SAID EAST ASIA IS A POTENTIALLY LUCRATIVE MARKET
BUT HE IS WARY OF GOING OVERBOARD DEMAND HAS BEEN HUGE ON US IN THE
INTERNATIONAL MARKET BUT I'M AFRAID TO UNLEASH THIS THING MR NEAR SAID
WE NEED TO DO IT RIGHT SO I WOULD LIKE TO GO ABOUT THE INTERNATIONAL
EXPANSION METHODICALLY

TO THAT END MR NEAR HIRED JOHN WRIGHT A PEPSICO EXECUTIVE TO THE NEWLY
CREATED POST OF PRESIDENT INTERNATIONAL DIVISION IN OCTOBER 1993 THE
COMPANY HAS MORE THAN 400 OUTLETS OUTSIDE THE US

WHILE EXPANSION OPPORTUNITIES ABOUND INTERNATIONALLY THE US MARKET HAS
GROWN TIGHTER WITH AMERICANS INCREASINGLY VALUECONSCIOUS PRICING HAS
BECOME CRUCIAL WE HAVEN'T RAISED PRICES IN ABOUT 3 1/2 YEARS MR NEAR
SAID OUR THINKING IS LET'S BUILD THE VOLUME THE SIMPLE FACT IS THAT OUR
CUSTOMERS SIMPLY WON'T PAY MORE THE FIERCE MARKETPLACE HAS BEGUN TO HURT
SOME COMPETITORS FOR INSTANCE RALLY'S HAMBURGERS INC RECENTLY ANNOUNCED
IT WOULD TRIM EXPANSION PLANS

ALSO COMPLICATING THE AMERICAN BURGER MARKET THE AMERICAN DIET ATTITUDES
TOWARD RED MEAT HAVE BEEN ENIGMATIC AT BEST BUT MR NEAR SEES NO REASON
FOR EXTENSIVE CONCERN STEAKHOUSES SEEM TO BE BACK BIGGER THAN EVER MR
NEAR SAID AND I BELIEVE IF YOU HAVE A GOOD LEAN PRODUCT PEOPLE DON'T
MIND SO MUCH I THINK THE CONSUMER STILL HAS THE TASTEBUD EVERY ONCE IN A
WHILE FOR A GOOD HAMBURGER

TO BE SURE WENDY'S HAS NOT IGNORED THE TRENDS AWAY FROM RED MEAT THE
COMPANY TOUTS CHICKEN MEALS SALAD AND OTHER DIVERSIONS IN FACT ONE OF MR
NEAR'S FAVORITE MEALS IS SPICY CHICKEN WITH A PICKLE 9402220148 940222
WHO'S NEWS NATIONAL WESTMINSTER BANK PLC

NATIONAL WESTMINSTER BANK PLC LONDON INVESTMENT BANKING COMPANY NATWEST
MARKETS A UNIT NAMED C WILLIAM SCHROTH TO HEAD ITS NORTH AMERICAN CAPITAL
MARKETS DIVISION AS THE COMPANY MOVES TO EXPAND ITS ACTIVITIES THERE MR
SCHROTH 45 YEARS OLD WAS FORMERLY MANAGING DIRECTOR OF CS FIRST BOSTON FOR
EIGHT YEARS THE CAPITAL MARKETS DIVISION WAS FORMERLY HEADED BY RICHARD P
KURTH 41 WHO EXPANDS HIS ROLE IN THAT AREA TO INCLUDE CLIENT DEVELOPMENT
MR SCHROTH AND MR KURTH EXECUTIVE VICE PRESIDENTS WILL BOTH SERVE ON THE
COMPANY'S MANAGEMENT COMMITTEE WHICH IS RESPONSIBLE FOR THE FIRM'S NORTH
AMERICAN BUSINESS 9402220146 940222 PC SHIPMENTS IN EUROPE FELL IN
QUARTER WITH COMMODORE AS THE BIGGEST LOSER  BY RICHARD L HUDSON
 STAFF REPORTER OF THE WALL STREET JOURNAL

LONDON RECESSION TOOK ITS TOLL ON THE EUROPEAN PERSONALCOMPUTER MARKET
IN THE FOURTH QUARTER ESPECIALLY BATTERING COMMODORE INTERNATIONAL LTD
BUT ANALYSTS FORECAST FASTER INDUSTRY SALES LATER THIS YEAR

THE COMPUTER INDUSTRY SHIPPED 3370000 PCS IN EUROPE DURING THE FOURTH
QUARTER DOWN 24 FROM A BOOMING QUARTER A YEAR EARLIER ACCORDING TO A
QUARTERLY PCMARKET REPORT BY THE WALL STREET JOURNAL/EUROPE AND THE
DATAQUEST INC UNIT OF DUN & BRADSTREET CORP BECAUSE OF FALLING PRICES AND
A RISING DOLLAR REVENUE TUMBLED EVEN FASTER BY 14 TO 629 BILLION THE
RESULTS PARTLY A PRODUCT OF RECESSION IN GERMANY SPAIN AND ITALY ADD A
SOUR NOTE TO A GENERALLY SWEET YEAR FOR MANY PC MAKERS IN EUROPE EARLIER IN
THE YEAR QUARTERLY UNIT SALES HAD BEEN CLIMBING AS FAST AS 187

OVERALL FOR THE YEAR UNIT SALES ROSE 88 TO 10320000 PCS THOUGH THE
INDUSTRY'S PRICE WAR HELPED DEFLATE REVENUE BY 99 TO 203 BILLION AS
MEASURED IN DOLLARS AFTER ADJUSTMENT FOR CURRENCY FLUCTUATIONS REVENUE
ROSE 12

WITHIN SUCH BROAD NUMBERS PERFORMANCE BY INDIVIDUAL COMPANIES VARIED
WILDLY GENERALLY MOST OF THE INDUSTRY'S BLUECHIP VENDORS GAINED MARKET
SHARE AS THEIR PCS ATTRACTED BARGAIN HUNTERS FOLLOWING STEEP PRICE CUTS
OVER THE PAST 18 MONTHS COMPAQ COMPUTER CORP RAISED ITS MARKET SHARE TO
94 FROM 66 A YEAR EARLIER WHILE APPLE COMPUTER INC HEWLETTPACKARD
CO AND AST RESEARCH INC ALSO GAINED SHARE THEIR SUCCESS CAME AT THE
EXPENSE OF SOME VENDORS OF NONAME CLONES AND NONSTANDARD PCS

BY FAR THE BIGGEST LOSER FOR THE QUARTER WAS COMMODORE INTERNATIONAL A WEST
CHESTER PA COMPANY BEST KNOWN FOR ITS AMIGA LINE OF GAMESPLAYING PCS
UNTIL A FEW YEARS AGO COMMODORE SOLD MORE PCS IN EUROPE THAN ANY OTHER
COMPANY BUT LAST AUGUST IT DISCONTINUED ITS UNPROFITABLE LINE OF
IBMCOMPATIBLE PCS AND LATELY ITS NONCOMPATIBLE AMIGAS HAVE COME UNDER
INCREASING ATTACK FROM TELEVISIONGAMES CONSOLE MAKERS ON ONE HAND AND
MAINSTREAM IBMCOMPATIBLE PC MAKERS ON THE OTHER BETWEEN THE TWO FORCES
SAYS DATAQUEST'S HEAD PC ANALYST CHRISTOPHER FELL COMMODORE HAS BEEN
SITTING RIGHT IN THE MIDDLE

COMMODORE DOESN'T DISPUTE THAT ITS MARKET SHARE HAS FALLEN BUT IT AND
DATAQUEST DISAGREE ON THE EXACT NUMBERS ALWIN STUMPF HEAD OF COMMODORE'S
OPERATIONS IN GERMANY AUSTRIA SWITZERLAND AND EASTERN EUROPE SAYS
EUROPEAN SALES FELL IN THE QUARTER TO ABOUT 300000 UNITS FROM 410000 TO
420000 A YEAR EARLIER DATAQUEST BASED ON ITS OWN RESEARCH COUNTS 167000
PCS SOLD OR A 49 MARKET SHARECOMPARED WITH 470000 UNITS OR 136 A
YEAR EARLIER

MR STUMPF SAYS COMMODORE'S DROP IN MARKET SHARE STEMMED MAINLY FROM THE
DISCONTINUATION OF ITS IBMCOMPATIBLE LINE BUT HE SAYS COMMODORE'S MAINSTAY
AMIGA RANGE HAS MAINTAINED OR INCREASED SALES IN MANY EUROPEAN COUNTRIES TO
FOCUS ON AMIGA MR STUMPF SAYS COMMODORE CUT ITS EUROPEAN WORK FORCE BY
HALF IN THE PAST 12 MONTHS IT PLANS NEW AMIGA MODELS THIS YEAR COMPARED
WITH THE ABANDONED IBMCOMPATIBLE LINE MR STUMPF SAYS THE AMIGA BUSINESS
IS A LOT BETTER IT'S SMALLER REVENUES BUT MUCH BETTER PROFIT MARGINS

BY CONTRAST THE BIG WINNER IN THE QUARTER WAS COMPAQ WHICH RECENTLY
REPORTED A 30 JUMP IN REVENUE DURING THE QUARTER TO 797 MILLION IF
COMMODORE'S RESULTS ARE IGNORED THE REST OF THE PC INDUSTRY LOOKS A LOT
HEALTHIER WITH UNIT SALES RISING 98A MODERATE PERFORMANCE BY THE
STANDARDS OF THE PC INDUSTRY

ANDREAS BARTH COMPAQ'S SENIOR VICE PRESIDENT FOR EUROPEAN OPERATIONS LIKE
MOST INDUSTRY EXECUTIVES SAYS MOST SIGNS POINT TO FASTER GROWTH IN
SHIPMENTS AND REVENUE FOR THE EUROPEAN MARKET OVERALL THIS YEAR HE SAYS HE
EXPECTS THE BRITISH MARKET TO CONTINUE PULLING OUT OF RECESSION WHILE
FRANCE AND GERMANY MAY SEE AN ECONOMIC UPTURN IN THE SECOND HALF OF THE
YEAR

LIKEWISE DATAQUEST FORECASTS INDUSTRY GROWTH WILL REVIVE THIS YEAR WITH
UNITS RISING 135 AND REVENUE BY 5 TO 6 9402220145 940222 PERU'S
PROGRESS FUJIMORI HAS TAMED TERRORISM AND INFLATION BUT MEANS STILL
RANKLE  THOUGH HIS AUTOCRATIC RULE WINS PLAUDITS AT HOME US
WON'T RESUME AID  DIMMING THE SHINING PATH  BY MATT MOFFETT 
STAFF REPORTER OF THE WALL STREET JOURNAL

LIMA PERU ALBERTO FUJIMORI'S UNLIKELY POLITICAL ODYSSEY BEGAN A DECADE
AGO WHEN A FORTUNETELLER HELPED CONVINCE THE THENOBSCURE UNIVERSITY
PROFESSOR THAT HE POSSESSED EXCEPTIONAL QUALITIES OF LEADERSHIP BUT NOT
EVEN THE SAVVIEST SEER MIGHT HAVE FORESEEN MR FUJIMORI'S SUCCESS AT
TRANSFORMING PERU FROM A LATIN AMERICAN LEBANON INTO AN EMERGING ECONOMIC
STAR

WHEN MR FUJIMORI TOOK OFFICE AS PERU'S PRESIDENT IN 1990 HE INHERITED A
CRIPPLING WAR WITH A MAOIST GUERRILLA GROUP KNOWN AS THE SHINING PATH THAT
HAD COST 20000 LIVES AND 20 BILLION PERU'S ECONOMY HAD CONTRACTED A
STARTLING 20 DURING THE PRIOR TWO YEARS AND INFLATION HAD TOPPED 7000 A
US RISKANALYSIS FIRM RATED PERU THE MOST DANGEROUS PLACE IN THE WORLD TO
DO BUSINESS

WHETHER THROUGH SKILL RUTHLESSNESS OR GOOD FORTUNE MR FUJIMORI HAS
TRIUMPHED OVER EXTRAORDINARY ODDS HIS GOVERNMENT HAS SO PUMMELED THE
SHINING PATH THAT THOUSANDS OF DISPLACED PERUVIANS AND EVEN SOME TOURISTS
ARE RETURNING TO FORMER WAR ZONES HIS FREEMARKET PROGRAM HAS TAMED
INFLATION AND TURNED PERU'S ECONOMY INTO THE FASTEST GROWING ONE IN THE
AMERICAS PERU'S STOCK MARKET HAS BEEN HEAVING WITH NEW CAPITAL

ALL OF MR FUJIMORI'S ACCOMPLISHMENTS HOWEVER HAVEN'T EARNED HIM ONE
CRUCIAL VICTORY ACCEPTANCE FROM THE US GOVERNMENT FOR SOME US
OFFICIALS MR FUJIMORI'S ACHIEVEMENTS MAY ALWAYS BE TAINTED BY THE
STRONGARM TACTICS HE USED TO ENGINEER THE TURNAROUND ORIGINAL SIN DOES
NOT EXIST REMARKS PERU'S FOREIGN MINISTER EFRAIN GOLDENBERG

AT 1030 ON THE NIGHT OF APRIL 5 1992 PRESIDENT FUJIMORI INTERRUPTED
REGULAR PROGRAMMING ON PERUVIAN TELEVISION TO ANNOUNCE THAT HE WAS
DISSOLVING CONGRESS SUSPENDING THE CONSTITUTION AND PERSONALLY ASSUMING
ALMOST COMPLETE CONTROL OF THE COUNTRY HE SAID THE SEIZURE OF NEARLY
ABSOLUTE POWER WHICH CAME TO BE KNOWN AS EL AUTOGOLPE OR THE SELFCOUP
WAS THE ONLY WAY TO STOP THE FEROCIOUS SHINING PATH FROM TAKING OVER PERU
WEARIED BY A DOZEN YEARS OF INEFFECTUAL ANTITERRORIST STRATEGIES AND INEPT
ECONOMIC MANAGEMENT PERUVIANS CHEERED AS MR FUJIMORI CRACKED DOWN ON THE
GUERRILLAS AND RAMMED THROUGH HIS MARKET REFORMS

THE US AND MOST OF THE INTERNATIONAL COMMUNITY HOWEVER CONDEMNED THE
MOVE THE US HAS SUSPENDED MOST ECONOMIC AID EVER SINCE EVEN THOUGH MR
FUJIMORI HAS MADE GOOD ON A PLEDGE TO HOLD ELECTIONS FOR A NEW CONGRESS AND
A NEW CONSTITUTION LEADERS IN THE US CONGRESS SAY THAT UNLESS HE TAKES
FURTHER STEPS TO STRENGTHEN DEMOCRATIC PROCESSES AND IMPROVE PERU'S SORRY
HUMANRIGHTS RECORD RENEWING ECONOMIC AID MIGHT ENCOURAGE THE EMERGENCE OF
OTHER AUTHORITARIAN LEADERS IN LATIN AMERICA NOT LONG AFTER MR FUJIMORI'S
POWER GRAB THE PRESIDENT OF GUATEMALA ATTEMPTED A SELFCOUP THOUGH THE
MOVE BACKFIRED WHEN A POPULAR OUTCRY FORCED HIM FROM OFFICE THE POSSIBILITY
OF AUTOGOLPES HAS ALSO BEEN DISCUSSED OPENLY BY LEADERS IN BRAZIL AND
VENEZUELA

MR FUJIMORI'S DEFENDERS ARGUE THAT THE CLINTON ADMINISTRATION DOESN'T MAKE
DEMOCRACY SUCH A PRIORITY IN DEALING WITH COUNTRIES THAT ARE MORE
STRATEGICALLY IMPORTANT THEY NOTE THAT WASHINGTON GAVE STRONG SUPPORT TO
BORIS YELTSIN WHEN HE SUSPENDED THE RUSSIAN PARLIAMENT LAST YEAR THERE IS
NO DOUBT WHERE MR YELTSIN GOT HIS INSPIRATION MR FUJIMORI SAYS RUSSIAN
INTELLIGENCE CONSULTED WITH ITS PERUVIAN COUNTERPART BEFORE MR YELTSIN'S
MOVE

I CAN'T EXPLAIN WHY AMERICAN FOREIGN POLICY IS DISCRIMINATORY SAYS MR
FUJIMORI SITTING IN A CHAMBER OF THE BAROQUE NATIONAL PALACE THAT IS
DECORATED WITH A SAMURAI COSTUME GIVEN TO HIM ON A VISIT TO HIS ANCESTRAL
HOME OF JAPAN THE STATE DEPARTMENT MAINTAINS THAT THE ADMINISTRATION BACKED
MR YELTSIN BECAUSE THE RUSSIAN PARLIAMENT HAD BEEN CONVENED UNDER THE OLD
SOVIET CONSTITUTION WHICH DIDN'T PROVIDE FOR WHAT THE US CONSIDERED FREE
AND FAIR ELECTIONS PERU'S CONGRESS ON THE OTHER HAND HAD BEEN
DEMOCRATICALLY ELECTED

MR FUJIMORI NOW IS APPEALING DIRECTLY TO PRIVATE US INVESTORS WITH WHAT
IS PROBABLY THE MOST SWEEPING PRIVATIZATION PROGRAM IN LATIN AMERICA
INVESTORS HAVE AN APPRAISAL THAT'S DIFFERENT FROM THAT OF GOVERNMENT
FUNCTIONARIES HE OBSERVES HE SAYS US COMPANIES ARE LOOKING FAVORABLY ON
PERU'S ECONOMIC PERFORMANCE LAST YEAR WHEN OUTPUT GREW 68 INFLATION
SLOWED TO UNDER 40 AND THE STOCK MARKET SOARED 90

IF THE SALE OF THE STATEOWNED COMPANIES IS SUCCESSFUL PERU CAN USE THE
PROCEEDS TO SHARPLY INCREASE SOCIAL SPENDING THAT WOULD GIVE MR FUJIMORI A
LEG UP IN NEXT YEAR'S PRESIDENTIAL ELECTION WITH A COUPLE OF BILLION
DOLLARS IN PRIVATIZATION REVENUE AND CONTINUED ECONOMIC GROWTH FUJIMORI
COULD BE AROUND FOR A LONG TIME SAYS FELIPE ORTIZ DE ZEVALLOS A POLITICAL
ANALYST HE'S THE POLITICIAN FOR PEOPLE WHO NORMALLY HATE POLITICIANS

AT A TIME WHEN FRUSTRATION WITH POLITICIANS IS A GLOBAL TREND PERU UNDER
MR FUJIMORI IS AN OBJECT LESSON SHOWING WHERE IMPATIENCE WITH THE GOVERNING
PROCESS CAN LEAD THE SON OF JAPANESE IMMIGRANTS MR FUJIMORI NOW 55
SPENT NEARLY THREE DECADES LABORING IN ANONYMITY AS A COLLEGE MATHEMATICS
PROFESSOR HE WAS RUNNING IN AN ELECTION FOR DEAN OF HIS DEPARTMENT IN 1984
WHEN A FORTUNETELLER HELPED PERSUADE HIM TO AIM HIGHER AND RUN FOR
UNIVERSITY PRESIDENT HE DID AND HE WON

IN 1990 HE AIMED HIGHER STILL SEEKING PERU'S HIGHEST OFFICE AS A POLITICAL
INDEPENDENT MR FUJIMORI WHO DIDN'T TALK LIKE A POLITICIAN CAPITALIZED ON
WIDESPREAD DISCONTENT WITH PERU'S GOVERNING ELITE AND ITS CANDIDATE THE
NOVELIST MARIO VARGAS LLOSA

WHEN ASKED BY THE PERUVIAN MEDIA WHAT BOOK HE WOULD TAKE WITH HIM ON A
DESERT ISLAND MR FUJIMORI IGNORED A QUESTION HE THOUGHT FRIVOLOUS AND
RESPONDED THAT HE WOULD PACK A MACHETE AND FISH HOOKS HIS GOVERNING
PHILOSOPHY WAS TO HAVE NO GOVERNING PHILOSOPHY HE PROMISED NOT HETERODOXY
NOR ORTHODOXY NOT LIBERALISM NOR COMMUNISM NOR POPULISM ONLY
PRAGMATISM

WHEN MR FUJIMORI TOOK OFFICE WITH THE TREASURY EMPTY AND TENS OF THOUSANDS
OF PERUVIANS FLEEING ABROAD IT SEEMED THAT PERU DIDN'T NEED A PRAGMATIST SO
MUCH AS A MIRACLE WORKER MR FUJIMORI CONTENDED THAT THE COUNTRY'S PROBLEMS
WERE ROOTED IN THE FAILURE OF THE JUDICIAL AND LEGISLATIVE BRANCHES TO
SQUARELY CONFRONT TERRORISM SINCE THE SHINING PATH BEGAN ITS STRUGGLE IN
1980 FULLY 95 OF SUSPECTS ARRESTED ON TERRORISM CHARGES HAD BEEN RELEASED
WITHOUT COMING TO TRIAL BY JUDGES WHO EITHER SYMPATHIZED WITH THE TERRORISTS
OR WERE INTIMIDATED BY THEM AS FOR THE PERUVIAN CONGRESS MR FUJIMORI
ASSERTS ALL IT WANTED TO DO WAS MANAGE TERRORISM

WHILE HE ENJOYED SOME EARLY SUCCESS IN GETTING LEGISLATORS TO BACK HIS
PROGRAM OF TOUGH ANTITERRORIST MEASURES AND FREEMARKET ECONOMIC REFORM IT
DIDN'T TAKE LONG FOR FRICTIONS TO DEVELOP AS AN INDEPENDENT MR FUJIMORI
HAD FEW SYMPATHIZERS IN THE CONGRESS AND HIS MANNER WAS OFTEN IMPERIOUS
HE WOULD SHUT THE DOOR WHEN CONGRESS WANTED TO TALK SAYS GUIDO PENNANO
HIS FORMER MINISTER OF INDUSTRY

SOON HIS PROGRAM GROUND TO A HALT IN LATE 1991 THE PERUVIAN CONGRESS
BLOCKED MANY OF THE MORE THAN 100 EMERGENCY DECREES HE HAD ISSUED TO EXPAND
MILITARY AUTHORITY OVER THE JUDICIARY AND TO PROMOTE FREE ENTERPRISE EARLY
IN 1992 THE SUPREME COURT TRYING THE RUTHLESS LEADER OF THE SHINING PATH
ABIMAEL GUZMAN IN ABSENTIA INEXPLICABLY DROPPED CHARGES AGAINST HIM

ONLY A COUPLE OF WEEKS LATER MR FUJIMORI TOOK THE LAW INTO HIS OWN HANDS
THE STROKE WAS PLANNED METICULOUSLY AS WERE SUBSEQUENT COUNTERTERRORISM
MEASURES MILITARY COMPUTERS EVEN BEGAN TRACKING SALES OF A CHEMICAL
FERTILIZER USED TO MAKE SHINING PATH CAR BOMBS

THROUGHOUT THE SUMMER OF 1992 A VIRTUAL ALLOUT WAR RAGED BETWEEN THE
GUERRILLAS AND THE ARMY THE TERRORISTS MOVED OUT OF ANDEAN BASES AND BEGAN
ATTACKING THE CITY OF LIMA ITSELF

BY THE FALL JUST WHEN IT SEEMED THE TIDE WAS TURNING AGAINST MR FUJIMORI
POLICE CAPTURED MR GUZMAN IN A HIDEOUT LOCATED ABOVE A LIMA DANCE STUDIO
NOTEBOOKS SEIZED ON THE PREMISES LED TO THE SUBSEQUENT ARREST OF NEARLY A
SCORE OF HIS TOP LIEUTENANTS REBEL MORALE TOOK A FURTHER BEATING LAST FALL
WHEN A HUMBLED MR GUZMAN SERVING A LIFE SENTENCE IN AN UNDERGROUND PRISON
ON A PACIFIC ISLAND NAVAL BASE WROTE TO MR FUJIMORI SUGGESTING THAT THE
FIGHTING STOP

WHILE MANY SHINING PATH OPERATIVES REMAIN IN THE FIELD MURDERS AND ECONOMIC
DAMAGE CAUSED BY THE GROUP PLUMMETED LAST YEAR TO ABOUT HALF OF THE 1992
LEVEL MOST ANALYSTS SEE SHINING PATH BECOMING AN INCREASINGLY MARGINAL
FORCE

MR FUJIMORI SAYS HE HIMSELF DIDN'T REALIZE HOW THOROUGHLY SHINING PATH HAD
BEEN REDUCED UNTIL LAST YEAR WHEN HE PAID A VISIT TO THE ANDEAN VILLAGE OF
AYACUCHO THE BIRTHPLACE OF SHINING PATH AYACUCHO HAD BEEN CONTROLLED SO
COMPLETELY BY GUERRILLAS THAT OUTSIDERS SELDOM VENTURED THERE ON HIS TRIP
MR FUJIMORI LED THOUSANDS OF ROMAN CATHOLIC WORSHIPERS ON A NIGHTTIME
CANDLELIGHT PROCESSION AN ANCIENT TRADITION BEING RENEWED AFTER A DECADE'S
HIATUS FOR 10 YEARS PEOPLE IN AYACUCHO HAD BEEN AFRAID TO GO OUT AT
NIGHT MR FUJIMORI SAYS

WAS SEIZING DICTATORIAL POWERS THE ONLY WAY HE COULD HAVE THROTTLED THE
SHINING PATH HIS CRITICS SAY NO THEY POINT OUT THAT THE ANTITERRORIST UNIT
THAT CAUGHT MR GUZMAN HAD BEEN SET UP BEFORE MR FUJIMORI TOOK OFFICE
CRITICS ADD THAT THE VICTORY CAME AT A STEEP PRICE HUNDREDS OF SUMMARY
ARRESTS OR EXECUTIONS OF SUSPECTED TERRORISTS MANY OF WHOM MIGHT HAVE BEEN
INNOCENT

STILL IT IS HARD TO CONVINCE MOST PERUVIANS THAT ANYTHING WOULD HAVE
IMPROVED WITHOUT THE SELFCOUP AFTER 12 YEARS IN WHICH TERRORISTS RAN
WILD A PRESIDENT WITH GUTS CLEANED UP THIS COUNTRY IN JUST A FEW MONTHS
SAYS MARCO MORALES OWNER OF A SMALL CONSTRUCTION COMPANY AS IF TO
SYMBOLIZE THE CHANGE MR MORALES IS SHIFTING AWAY FROM CONSTRUCTION OF THE
HIGHSECURITY FENCES AND DOORS THAT WERE ONCE HIS MAJOR LINE AND IS
EMPHASIZING A NEW NICHE BUILDING FACTORIES

THE REDUCTION IN TERRORISM ALONG WITH VOTER APPROVAL OF A NEW
CONSTITUTION THAT EASES INVESTMENT RESTRICTIONS AND CURBS LABOR PRIVILEGES
 HAS SET OFF AN EFFERVESCENCE IN THE BUSINESS COMMUNITY A YEAR AGO IT
WOULD HAVE BEEN SUICIDE TO HAVE DONE BUSINESS IN THIS CAR IN THIS PART OF
LIMA SAYS INDUSTRIALIST RICARDO MARQUEZ RIDING IN THE BACK SEAT OF HIS
MERCEDES THROUGH WHAT USED TO BE A RED ZONE A NEIGHBORHOOD CONTROLLED
BY THE SHINING PATH MR MARQUEZ'S CLOTHING MANUFACTURING PLANT HAD ITS BEST
YEAR EVER LAST YEAR INCREASING PRODUCTIVITY 20

WHILE CREDITING MR FUJIMORI FOR THE TURNAROUND MR MARQUEZ WHO HEADS
PERU'S LARGEST MANUFACTURERS' ASSOCIATION SAYS THE PRESIDENT REMAINS AN
ENIGMA HE KNOWS WE LOVE HIM BUT EVEN WHEN HE COMES TO OUR MEETINGS HE
BRINGS HIS OWN ORANGE JUICE THE INDUSTRIALIST SAYS

EVEN IN DETAILS AS MINUTE AS HIS BEVERAGE INTAKE THERE'S ALWAYS THE RISK
OF POISONING MR FUJIMORI REMAINS A MAN WHO LIKES CONTROL THE NEW
CONSTITUTION CONCENTRATES POWER IN THE EXECUTIVE BRANCH AND IN A RARITY FOR
LATIN AMERICA ALLOWS A SITTING PRESIDENT TO SEEK REELECTION MOST OF THOSE
ELECTED TO THE RECONSTITUTED LEGISLATURE ARE FUJIMORI LOYALISTS

WITH THE AID OF AN EVERPRESENT TOSHIBA 4400 LAPTOP COMPUTER MR FUJIMORI
PERSONALLY TENDS TO AFFAIRS OF STATE AS SMALL AS THE BREAKDOWN OF A TINY
ANDEAN ELECTRICAL STATION WHICH WILL COST 10000 TO REPAIR WITHOUT
THIS HE SAYS HOISTING THE LAPTOP PERU DOESN'T MOVE

IF ONLY IT WERE SO EASY FOR MR FUJIMORI TO PROGRAM HIS RELATIONSHIP WITH
THE US JUST WHEN THE PERUVIAN LEADER WAS BEGINNING TO WIN INTERNATIONAL
RECOGNITION FOR LAST FALL'S REFERENDUM ON THE NEW CONSTITUTION HE HAS ONCE
AGAIN BECOME A TARGET OF CRITICISM OVER HIS HANDLING OF A HUMANRIGHTS CASE

THE PERUVIAN CONGRESS WITH MR FUJIMORI'S BACKING RAMMED THROUGH
LEGISLATION THIS MONTH THAT WILL ALLOW A MILITARY COURT RATHER THAN A
CIVILIAN ONE TO TRY SEVERAL MILITARY OFFICERS ACCUSED IN THE KILLING OF
NINE UNIVERSITY STUDENTS AND A PROFESSOR SUSPECTED OF TERRORIST ACTIVITIES
THE US STATE DEPARTMENT CRITICIZED THE MOVE AS A DISRUPTION OF DUE
PROCESS

MR FUJIMORI'S BOW TO MILITARY AUTHORITY HAS ALSO BEEN UNPOPULAR WITH MANY
PERUVIANS MR FUJIMORI'S PRIME MINISTER WHO HAD BEEN A STRONG DEFENDER OF
THE SELFCOUP RESIGNED IN PROTEST

REFORMING THE MILITARYDOMINATED COURTS AND PUNISHING OFFICERS SUSPECTED OF
HUMANRIGHTS ABUSES WERE TWO OF SEVERAL CONDITIONS THAT US CONGRESSIONAL
LEADERS HAD IMPOSED BEFORE BACKING THE RELEASE OF 105 MILLION IN AID
APPROPRIATED FOR PERU MR FUJIMORI HAD PLANNED ON USING THE US MONEY TO
LEVERAGE ANOTHER 500 MILLION OR SO IN ECONOMIC ASSISTANCE FROM OTHER
WESTERN NATIONS

WITH THE US GOVERNMENT UNLIKELY TO RESUME AID ANYTIME SOON MR FUJIMORI
IS COUNTING ON PRIVATE US INVESTORS TO PICK UP THE SLACK AND THEY ARE
RESPONDING

US MINING COMPANIES ARE BURROWING ALL OVER PERU YOU CAN'T GET UP ON SOME
OF THESE HILLS ANY MORE THERE ARE SO MANY GEOLOGISTS AROUND SAYS CHARLES
PREBLE PRESIDENT OF THE SOUTHERN PERU COPPER CORP A HOST OF INTERNATIONAL
TELEPHONE COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND GTE
CORP ARE BIDDING THIS MONTH FOR PERU'S STATECONTROLLED PHONE NETWORK
COMING PRIVATIZATIONS OF ELECTRIC COMPANIES HOTELS AND CEMENT MAKERS ARE
ALSO ATTRACTING INTERNATIONAL INTEREST

BUOYED BY THE RESPONSE OF FOREIGN CAPITALISTS MR FUJIMORI SAYS HE HAS NO
REGRETS ABOUT ANY OF HIS ACTIONS IN OFFICE I'M A DECISIVE MAN THE
PRESIDENT SAYS UNPLUGGING HIS TOSHIBA AND STANDING UP TO LEAVE I WANT
SOLUTIONS 9402220144 940208 REVIEW & OUTLOOK EDITORIAL SPEND LIKE
AN EGYPTIAN

SEARCHING FOR MEANING AMID THE 2013PAGE FOURVOLUME HIEROGLYPHIC TEXT
THAT IS THE CLINTON FY 1995 BUDGET OUR EYES CAUGHT A SINGLE LINE ON PAGE 27
UNDER PROPOSED INVESTMENTS AT LAST WE HAD FOUND THE ROSETTA STONE

THE LINE READS PAYMENT TO THE LEGAL SERVICES CORPORATION AND IT SHOWS
SPENDING GOING UP FROM 357 MILLION IN 1993 TO 400 MILLION IN 1994 TO A
500 MILLION WINDFALL IN 1995 THAT'S A 25 INCREASE IN A SINGLE YEAR OR
ABOUT EIGHT TIMES THE RATE OF INFLATION SO THIS IS WHAT PRESIDENT CLINTON
MEANS BY INVESTING IN PEOPLE INCREASE THE SUBSIDY FOR LAWYERS WHO CAN
THEN USE THE MONEY TO PAPER AMERICA WITH LAWSUITS SOMEHOW HE FORGOT TO
MENTION THIS IN HIS STATE OF THE UNION ADDRESS

WE OFFER THIS TRANSLATION GUIDE BECAUSE JUST LISTENING TO THE EGYPTIAN
BUDGETESE YOU MIGHT CONCLUDE THIS IS A SKINFLINT DOCUMENT MR CLINTON EVEN
SAYS HIS 1518300000000 BUDGET HAS FROZEN DISCRETIONARY SPENDING
WHICH SOUNDS IMPRESSIVE BUT PARSING THE NUMBERS REVEALS A BAIT AND SWITCH
SPENDING ON FAVORED CLINTON DISCRETIONARY ITEMS ACTUALLY GOES UP BY ABOUT
8 FROM 1993 TO 1995 AND EVEN MORE IN THE FUTURE

THE RUSE IS TO CUT DEFENSE SPENDING TO THE BONE THEN TRANSFER THAT MONEY TO
OTHER DOMESTIC ACCOUNTS SO FROM 1993 TO 1995 MR CLINTON WOULD CUT DEFENSE
BY SOME 33 BILLION EVEN AS TOTAL DISCRETIONARY SPENDING STAYS LEVEL AND
REMEMBER MR CLINTON'S FLOOR UNDER DEFENSE SPENDING IN THE STATE OF THE
UNION MORE EGYPTIAN THIS IS TRUE ONLY IF YOU DON'T ACCOUNT FOR INFLATION
AND IF YOU WAIT UNTIL AFTER 1997 BY 1997 US DEFENSE SPENDING WILL HAVE
FALLEN TO 33 OF THE US ECONOMY LOWER THAN AT ANY TIME SINCE 1940 IF
MR CLINTON WANTS TO BOMB SERBIA HE'D BETTER DO IT SOON WHILE THE US
MILITARY CAN STILL AFFORD TO

MR CLINTON'S SPENDING PRIORITIES ON THE OTHER HAND ARE CLEAR FROM THE
EXCERPTS ON THE LIST NEARBY FOR EXAMPLE CONSIDER THE SBA'S INVESTMENT
COMPANY GUARANTEES THIS MORE THAN DOUBLES IN 1995 TO 91 MILLION AS DO
THE LOAN LEVELS TO 730 MILLION ARKANSOLOGISTS WILL RECALL THAT IT WAS
JUST SUCH A 300000 SBIC LOAN THAT DAVID HALE MADE TO SUSAN MCDOUGAL THE
PARTNER OF THE CLINTONS IN THEIR WHITEWATER VENTURE

THEN THERE ARE LAST YEAR'S FAILED STIMULUS SPENDING ITEMS REPACKAGED AS
INVESTMENTS THE HUD BUDGET WILL GET 149 MILLION FOR SOMETHING CALLED
MOVING TO INDEPENDENCE WHICH WE ASSUME WILL MAKE BIG CITY MAYORS HAPPY
THE SAME GOES FOR HOMELESS PROGRAMS UP 52 THESE ARE NEW DEMOCRAT
INITIATIVES AND OF COURSE MR CLINTON'S MUCHBALLYHOOED SPENDING CAPS
DON'T EVEN INCLUDE THE NEARLY 10 BILLION IN EMERGENCY SPENDING HE'S JUST
PROPOSED FOR THE LOS ANGELES EARTHQUAKE NO OFFSETTING SPENDING CUTS FOR
THAT

THE BROADER MORE REALISTIC BUDGET STORY IS TOLD BY THE TOP HALF OF THE
CHART NEARBY SEE ACCOMPANYING ILLUSTRATION WSJ FEB 8 1993 MOST OF MR
CLINTON'S HYPOTHETICAL DEFICIT REDUCTION IS THE RESULT OF FASTER ECONOMIC
GROWTH AND HIGHER TAX RATES PROJECTED TO RAISE THE FEDERAL GOVERNMENT'S
REVENUE SHARE OF GDP TO 193 IN 1995 THIS TREND IS TAKING US BACK TO
CARTERERA TAX LEVELS IF YOU BELIEVE THAT THE CLINTON TAXES WILL YIELD THE
REVENUE THEY CLAIM

SPENDING MEANWHILE WILL FALL TO 216 OF GDP IF YOU ALSO CHOOSE TO
BELIEVE THE DECLINE HERE IS MAINLY A RESULT OF LOWER INTEREST PAYMENTS A
WINDFALL FROM THE RESALE OF S&L ASSETS ACQUIRED BY THE FEDS IN THE LATE
1980S DEFENSE CUTS AND REDUCED JOBLESS BENEFITS BECAUSE OF THE BETTER
ECONOMY BUT IF THE CLINTON BUDGET PASSES THROUGH 1999 NONDEFENSE SPENDING
 THE KIND THAT DEMOCRATIC CONSTITUENCIES LIKE WILL GROW AT A RATE OF 7
A YEAR

THIS IS WHY EVEN BY MR CLINTON'S OWN CALCULATIONS THE DEFICIT WILL GROW
AGAIN AFTER 1998 IT'S ALSO WHY SEE THE BOTTOM HALF OF THE CHART THE
NATIONAL DEBT LEVELS OFF AS A SHARE OF GDP BUT DOESN'T DECLINE MR
CLINTON'S ANSWER TO THIS IS HEALTH CARE REFORM WHICH IS SUPPOSED TO
ACCOMPLISH THE MIRACLE OF SIMULTANEOUSLY INSURING 37 MILLION MORE AMERICANS
ADDING FREE DRUG AND MENTALHEALTH BENEFITS AND REDUCING THE DEFICIT
ANYONE OTHER THAN IRA MAGAZINER WHO BELIEVES THAT NEEDS A PROZAC AND A LONG
REST

ALL OF WHICH HELPS TO EXPLAIN WHY MR CLINTON LOBBIED SO MIGHTILY LAST
NOVEMBER TO KILL THE PENNYKASICH SPENDING CUTS MR CLINTON WANTS TO SPEND
MORE NOT LESS STRIPPED OF ITS HIEROGLYPHIC OBFUSCATION THE CLINTON
BUDGET'S PRIORITIES ARE THESE TAX AND SPEND SEE RELATED LETTER STRICTLY
SPEAKING WSJ FEB 22 1994 9402080085 YY94 MM02 9402220143 940222
WHO'S NEWS MASTERCARD INTERNATIONAL INC

MASTERCARD INTERNATIONAL INC NEW YORK THE ASSOCIATION OF CREDITCARD
ISSUERS SAID ITS CHIEF OPERATING OFFICER WILLIAM T SANDALLS JR 50 YEARS
OLD IS LEAVING SATURDAY THE DECISION FOLLOWS THE ANNOUNCEMENT LAST MONTH
BY ALEX W PETE HART 53 WHO IS LEAVING HIS POSITION AS PRESIDENT AND
CHIEF EXECUTIVE OFFICER IN MARCH TO BECOME EXECUTIVE VICE CHAIRMAN OF
ADVANTA CORP A FINANCIALSERVICES COMPANY AS PREVIOUSLY REPORTED HE WILL
BE SUCCEEDED BY BANKING CONSULTANT H EUGENE LOCKHART MASTERCARD SAID IT
HASN'T NAMED A REPLACEMENT FOR MR SANDALLS 9402220142 940222 LARGE HEDGE
FUNDS SEE SUDDEN REVERSAL OF FORTUNE  BY LAURA JERESKI AND MICHAEL
R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL

EASY COME EASY GO

BARELY TWO MONTHS AFTER CLOSING A RECORD YEAR THE HUGE PRIVATE INVESTMENT
FUNDS THAT SWING THROUGH INTERNATIONAL CURRENCY AND BOND MARKETS ARE
ENDURING A STARK REVERSAL OF FORTUNE

STEINHARDT PARTNERS TIGER MANAGEMENT CAXTON CORP OMEGA ADVISERS AND
SOROS FUND MANAGEMENT HAVE HAD LOSSES OF HUNDREDS OF MILLIONS OF DOLLARS
OVER THE PAST FEW WEEKS THAT'S A SETBACK OF AS MUCH AS 10 FOR SOME HEDGE
FUNDS THE PRIVATE INVESTMENT PARTNERSHIPS THAT BORROW TO THE HILT TO MAKE
BIG BETS ON THE DIRECTION OF MARKETS

BUT THE GUNSLINGERS AREN'T SUFFERING ALONE THE PROPRIETARY TRADING DESKS OF
BIG INVESTMENT AND COMMERCIAL BANKS WHICH ACT AS INHOUSE HEDGE FUNDS HAVE
ALSO BEEN HIT OVER THE LAST SEVERAL YEARS THESE INSTITUTIONS HAVE BEEN
WILLING TO ACCEPT AN INCREASING AMOUNT OF RISK BECAUSE OF THE BENIGN
ENVIRONMENT OF FALLING INTEREST RATES WHICH GENERALLY BOOST THE VALUE OF
FIXEDINCOME INVESTMENTS

NO MORE WITH INTEREST RATES RISING THIS YEAR ONE MARKET AFTER ANOTHER HAS
TURNED INTO SHERMAN'S MARCH TO THE SEA THERE SEEM TO BE AS MANY WAYS TO
LOSE MONEY AS THERE WERE TO MAKE IT LAST YEAR AMONG THE CAUSES OF
MISFORTUNE THE SURPRISINGLY STEEP DECLINE OF THE DOLLAR AGAINST THE YEN
WHICH CAME QUICKLY ON THE HEELS OF RISING INTEREST RATES IN JAPAN AND
EUROPE

THE FIRMS WON'T COMMENT ABOUT THEIR POSITIONS BUT HERE'S THE PICTURE
TRADERS PAINT GOLDMAN SACHS & CO SUFFERED LOSSES OF AS MUCH AS 125
MILLION WHEN INTEREST RATES ROSE IN JAPAN IN JANUARY WHEN EUROPEAN INTEREST
RATES THEN ROSE AT THE BEGINNING OF FEBRUARY STEINHARDT TIGER CAXTON AND
OMEGA WERE HIT BY LOSSES IN THEIR EUROPEANBOND POSITIONS FINALLY WHEN THE
DOLLAR PLUNGED AGAINST THE YEN LAST WEEK SOME OF THE 10 BILLION IN FUNDS
MANAGED BY SOROS LOST 6 IN TWO DAYS OF FRENZIED TRADING A DECLINE OF AS
MUCH AS 600 MILLION ACCORDING TO ONE INVESTOR THE MARKETS HAVE RECOVERED
SOMEWHAT SINCE BUT TRADERS SAY THAT THESE LARGE PLAYERS ARE STILL UNDER
WATER FOR THIS YEAR

SOME ANALYSTS SAY THAT SOME OF THE LARGE FUNDS' SELLING HAS WORSENED PRICE
DECLINES IN SOME MARKETS FORCING SALES BY OTHER MORE CONSERVATIVE
INVESTORS WHAT WE COULD BE SEEING IS A MINIGLOBAL LIQUIDITY CRISIS
WARNS AVINASH PERSAUD AN INTERNATIONAL ECONOMIST AT JP MORGAN & CO IN
LONDON RUMORS OF HEAVY SELLING BY BIG TRADERS EVEN SPRANG UP DURING A
DROPOFF IN THE US BOND MARKET LAST THURSDAY

TRADERS SAY ONE OF THE FIRST BIG TRADING FIRMS TO FEEL THE PAIN IN JANUARY
WAS GOLDMAN SACHS WHOSE TRADERS CONTRIBUTED SIGNIFICANTLY TO THE FIRM'S
RECORD 23 BILLION PROFIT LAST YEAR SINCE LAST MARCH THE FIRM HAD BEEN
TOUTING THE JAPANESE GOVERNMENT BOND MARKET BUT INTEREST RATES ROSE IN THE
BENCHMARK 10YEAR GOVERNMENT BOND TO 357 FROM 302 AT THE BEGINNING OF
THE YEAR SO MUCH MONEY HAS FLOODED INTO THE JAPANESE BOND MARKET BECAUSE
IT'S BEEN SUCH A SLAMDUNK TRADE THAT TRADERS FOUND THEMSELVES UNABLE TO GET
OUT

HEDGING WITH FUTURES DIDN'T WORK EITHER THE CONTRACTS ARE EXPENSIVE AND THE
MARKET IS THIN LIQUIDITY CAN DRY UP IMMEDIATELY WHICH MAKES IT HARD TO
CONTROL RISK SAYS ONE TRADER IF THERE'S A SELLER AND NO BUYER THE
JAPANESE SUSPEND TRADING UNTIL THEY FIND ONE

THE HEDGE FUNDS WERE VICTIMS OF THEIR OWN PAST SUCCESSES IN EUROPE IN THE
FIRST TWO WEEKS OF FEBRUARY THE GERMAN GOVERNMENT BOND DROPPED 24 IN
PRICE AND THE BRITISH GOVERNMENT BOND LOST 28 ACCORDING TO EZRA ZASK
ASSOCIATES FUTURES CONTRACTS DECLINED EVEN FURTHER AT THE SAME TIME MAJOR
EUROPEAN CURRENCIES WHICH WERE FORECAST TO FALL AGAINST THE DOLLAR ARE
TRADING NEAR TO OR ABOVE WHERE THEY BEGAN IN 1994

BUT IT TOOK A WHILE FOR THE HEDGE FUNDS TO CATCH THE SIGNALS TRADERS SAY
EMBOLDENED BY PAST SUCCESSES SOME FUNDS ADDED TO THEIR POSITIONS WHICH
DEEPENED THEIR LOSSES THAT MAY HAVE CONTRIBUTED TO THE 10 DROP FOR FUNDS
MANAGED BY STEINHARDT SINCE THE BEGINNING OF THE MONTH A 500 MILLION
HOLE FOR THE FIRM WHICH MANAGES ABOUT 5 BILLION THE FIRM WOULDN'T COMMENT
ON ITS RESULTS BUT ITS CHIEF MICHAEL STEINHARDT CONCEDED TO A VISITOR
LAST WEEK THAT THIS IS ONE OF THOSE TOUGH YEARS

LOSSES ARE ONLY SLIGHTLY LESS STARK AT TIGER RUN BY JULIAN ROBERTSON WHICH
IS DOWN 8 OR SO AND OMEGA RUN BY LEON COOPERMAN DOWN 4 NEITHER FIRM
WOULD COMMENT ON RESULTS THE BIGGEST LOSER IN EUROPEAN BONDS MAY BE BRUCE
KOVNER OF CAXTON CORP WHICH HAS HELD LONG POSITIONS IN EUROPEAN BONDS
ACCORDING TO TRADERS A REPRESENTATIVE OF THE FIRM SAID HE WAS UNABLE TO
COMMENT AT THIS TIME

THE SHARP DECLINES ARE PUTTING THE FUNDS IN A BIND POSITION LIMITS ARE
FORCING THE LARGE TRADERS TO LIQUIDATE HOLDINGS INTO THE DECLINING MARKETS
THOSE WHO WERE LEVERAGED HAVE BEEN SELLING BONDS IN FRANCE GERMANY
HOLLAND SPAIN AND IN THE UK PARTICULARLY SAYS MICHAEL H HYMAN
MANAGING DIRECTOR AT GH ASSET MANAGEMENT LTD IN LONDON

GOLDMAN SACHS HAS BEEN AMONG THE MAJOR SELLERS FUELING RUMORS THAT THE
INVESTMENT BANK SUFFERED LOSSES IN EXCESS OF 500 MILLION FROM ITS
LONDONBASED PROPRIETARY TRADING DESK A SPOKESMAN FOR THE FIRM SAID LAST
WEEK THAT THE BOND SELLING WAS FOR THE BENEFIT OF CLIENTS IN A STATEMENT
RELEASED IN THE MIDST OF THE MARKET RUMORS THE FIRM SAID IT HAD EXPERIENCED
NO SIGNIFICANT TRADING LOSSES SINCE THE START OF ITS FISCAL YEAR IN
DECEMBER

BUT THE SELLING PRESSURE CONTINUES TO TAKE ITS TOLL WHEN THE GERMAN CENTRAL
BANK CUT ITS KEY DISCOUNT RATE BY HALF A PERCENTAGE POINT ON THURSDAY
EUROPEAN BOND MARKETS RALLIED FOR ONLY HALF AN HOUR BEFORE COLLAPSING UNDER
THE WEIGHT OF SELLING BY HEDGE FUNDS AND OTHER TRADERS

THE STEEPEST LOSS OF THE YEAR CAME IN THE CURRENCY MARKET WHEN THE YEN
SOARED AGAINST THE DOLLAR LAST WEEK SOROS LIKE MANY OTHER TRADERS HAD
EXPECTED THE YEN WOULD FALL IN LARGE PART BECAUSE OF THE POOR JAPANESE
ECONOMY INSTEAD THE BRUTAL MOVEMENT COST THE 5 BILLION QUANTUM FUND 6 IN
TWO DAYS A LOSS THAT TRADERS SAY WAS ECHOED IN THE OTHER FUNDS MANAGED BY
SOROS

HEDGEFUND MANAGERS ARE QUICK TO SAY PRIVATELY THAT REVERSALS ARE TO BE
EXPECTED ESPECIALLY AFTER LAST YEAR'S STUNNING RETURNS OF 70 OR MORE BUT
THE SUDDEN DROPS AT THE BEGINNING OF THE YEAR MEAN THEY WILL HAVE TO DIG
THEMSELVES OUT OF THEIR HOLES BEFORE THEY CAN COLLECT HEFTY PERFORMANCE
FEES

THAT'S SMALL COMFORT TO INVESTORS MANY OF WHOM ARE NEWCOMERS LURED BY THE
SIREN CALL OF SOCALLED FUND OF FUNDS MANAGERS WHO SPREAD THEIR MONEY ACROSS
A NUMBER OF HEDGE FUNDS TO DAMPRISK I'VE BEEN CALLING AROUND AND SO FAR
I'VE FOUND NO ONE WHO WAS ON THE RIGHT SIDE OF THE YENDOLLAR TRADE SAYS
ONE MOURNFUL MONEY MANAGER 9402220141 940222 CORPORATIONS SOME
MEXICANS CHARGE NORTH IN NAFTA'S WAKE  BY BOB ORTEGA STAFF
REPORTER OF THE WALL STREET JOURNAL

IN RECENT MONTHS FRANCISCO FRANCO OROZCO HAS TREKKED FROM HIS NATIVE
GUADALAJARA AS FAR NORTH AS PEORIA ILL LOOKING FOR JUST THE RIGHT PLACE
FOR A NEW PLANT TO BOTTLE HIS COMPANY'S TEQUILA

TEQUILA FROM PEORIA MR FRANCO OROZCO IS STILL WEIGHING THAT OPTION BUT
HIS SEARCH IS ONE SIGN THAT ROSS PEROT'S GIANT SUCKING SOUND GOES BOTH WAYS
THAT'S THE SOUND THAT WAS SUPPOSED TO BE MADE BY JOBS MOVING SOUTH BECAUSE
OF THE NORTH AMERICAN FREE TRADE AGREEMENT BUT WHILE SOME US COMPANIES
ARE INDEED STAMPEDING SOUTH DOZENS OF THEIR MEXICAN COUNTERPARTS ARE
EAGERLY CHARGING NORTH

MEXICAN BANKS STEELMAKERS TIRE MANUFACTURERS TRUCK AND BUS MAKERS
BROADCASTERS AND APPAREL AND FOOD COMPANIES ARE AMONG THE CONCERNS THAT HAVE
BEEN LURED NORTH BY THE PROMISE OF THE GIANT US MARKET

IT ISN'T ONLY NAFTA THAT'S ATTRACTING MEXICAN BUSINESS SAYS LINDA KILLIAN
AN ANALYST FOR RENAISSANCE CAPITAL CORP IN RECENT YEARS THE MEXICAN
GOVERNMENT HAS MADE IT EASIER FOR MEXICAN COMPANIES TO INVEST IN THE US 
SOMETIMES IN SURPRISING WAYS STATE OFFICIALS IN CALIFORNIA ARE NEGOTIATING
WITH MEXICAN FOOD PRODUCERS TO TAKE OVER CANNERIES CLOSED WHEN US
CONCERNS SUCH AS GREEN GIANT A UNIT OF GRAND METROPOLITAN PLC MOVED TO
MEXICO

IN MCALLEN TEXAS ELASTICOS SELECTOS SA A MEXICO CITYBASED ELASTICS
CONCERN WILL BREAK GROUND THIS MONTH ON THE FIRST MEXICANOWNED MAQUILADORA
BUILT ON THE US SIDE OF THE BORDER MAQUILADORAS ARE FOREIGNOWNED
FACTORIES NEAR THE BORDER THAT PRODUCE LARGELY TARIFFFREE GOODS FOR
EXPORT

THE MOTIVATION FOR THE MOVES VARIES CONSORCIO G GRUPO DINA SA A MEXICO
CITYBASED MAKER OF BUSES AND TRUCKS LAST MONTH ACQUIRED MOTOR COACH
INDUSTRIES INTERNATIONAL INC PHOENIX ARIZ AN INTERCITY BUS MAKER IN A
337 MILLION STOCK SWAP DINA ESSENTIALLY BOUGHT OUT THEIR NO 1 INTERSTATE
BUSMAKING COMPETITOR SAYS MS KILLIAN OF RENAISSANCE CAPITAL CORP BUT
ADDS STEVEN COLBERT AN ANALYST AT PRUDENTIAL SECURITIES DINA HAD ANOTHER
POWERFUL MOTIVE FOR ENTERING THE US MARKET THE MEXICAN BUS MARKET IS
EXPECTED TO DECLINE 40 THIS YEAR

ALFREDO NAIM SARKIS PRESIDENT AND CHIEF EXECUTIVE OF ELASTICOS SELECTOS
PRAISES THE QUALITY OF US WORKERS AND OF THE PHYSICAL INFRASTRUCTURE BUT
MOSTLY HE CITES THE SALES HE EXPECTS FROM CUSTOMERS WHO DEMAND A
MADEINTHEUSA LABEL

DAVID HYLAND PRESIDENT OF THE US UNIT OF INTERNATIONACIONAL DE CERAMICA
SA OF CHIHUAHUA WHICH IS BUILDING A 76 MILLION BATHROOMTILE
MANUFACTURING PLANT IN GARLAND TEXAS SAYS HIGHER US LABOR COSTS ARE
OFFSET BY OTHER FACTORS INTEREST RATES ARE HIGHER IN MEXICO AND CERAMIC
TILE IS HEAVY SO FREIGHT COSTS ARE A FACTOR HE SAYS BESIDES HE ADDS
THIS IS WHERE THE MARKET IS

LAST WEEK AN INVESTOR GROUP LED BY MEXICAN ENTREPRENEUR BERNARDO DOMINGUEZ
AGREED TO BUY THE WESTIN HOTEL & RESORT CHAIN'S OPERATIONS IN THE US AND
EUROPE FROM AOKI CORP OSAKA FOR 708 MILLION THAT INCLUDES 39 US
HOTELS

OTHER MEXICAN COMPANIES ARE HEADING NORTH AS A DEFENSIVE MOVE CEMENTOS
MEXICANOS SA MONTERREY THE LARGEST CEMENT PRODUCER IN NORTH AMERICA HAS
BEEN BUYING READYMIX CONCRETE COMPANIES IN CALIFORNIA ARIZONA TEXAS AND
OTHER STATES HECTOR CASTILLO AN ANALYST FOR MORGAN STANLEY & CO SAYS THE
COMPANY WANTS TO KEEP US CEMENT FROM FLOODING MEXICO WHERE IT CONTROLS
66 OF THE MARKET IN MEXICO CEMENT NOW SELLS FOR ABOUT 85 A METRIC TON
COMPARED WITH 64 IN THE US

BUT SOME MEXICAN COMPANIES ARE FINDING THE US MARKET TOUGHER THAN
EXPECTED CONSERVAS DE LA LAGUNA SA OF COAHUILA OPENED SHOP IN SAN ANTONIO
SIX MONTHS AGO BECAUSE WE KNOW US COMPANIES ARE COMING TO MEXICO SAYS
MIGUELANGEL FERNANDEZ MONTOYA PRESIDENT OF THE VEGETABLE PACKING CONCERN
AND WE KNOW THERE ARE PRODUCTS SWEET CORN PICKLES WHERE US
COMPANIES ARE MORE PRODUCTIVE MORE EFFICIENT THAN WE ARE SO THE PACKER IS
DUMPING THOSE LINES AT HOME AND PUSHING ITS STRONG SUIT JALAPENOS 
ABROAD

THE COMPANY IS GETTING AN EXPENSIVE EDUCATION HALF OF ITS FIRST SHIPMENT 
THREE TRAILERLOADS OF PLUMP JUICY CHILES IN JARS AND CANS REMAINS
UNSOLD MR FERNANDEZ SAYS THE COMPANY WASN'T FAMILIAR WITH THE US SYSTEM
OF WHOLESALING THROUGH FOOD BROKERS AND HAD LITTLE LUCK PEDDLING TO
RETAILERS IN PART BECAUSE IT OVERESTIMATED THE PRICES IT COULD CHARGE

ALSO THE COMPANY HASN'T ADVERTISED MAKING IT DIFFICULT TO BREAK INTO THE
MARKET SAYS LAURA TREVINO GENERAL MANAGER OF US OPERATIONS EVEN THOUGH
IT'S A HIGHQUALITY PRODUCT IT'S NEW HERE SHE SAYS AND RETAILERS ARE
AFRAID TO SELL BRANDS PEOPLE AREN'T FAMILIAR WITH SO THE COMPANY HAS
CHOPPED PRICES TO GET ITS FOOT IN THE DOOR AND THIS MONTH MS TREVINO
HIRED A MARKETING CONSULTANT SHE SAYS IF THAT DOESN'T PRODUCE RESULTS BY
APRIL WE'LL HIRE A BROKER

TO REDUCE THE RISK OF ENTERING AN UNFAMILIAR MARKET SOME MEXICAN COMPANIES
HAVE SOUGHT US PARTNERS FOR EXAMPLE GRUPO INDUSTRIAL BIMBO SA A HUGE
MEXICO CITYBASED BAKING CONCERN THAT ACQUIRED TORTILLA FACTORIES IN OHIO
AND OKLAHOMA IN RECENT MONTHS SAID IT WILL FORM A JOINT VENTURE WITH
PRIVATELY HELD MRS BAIRD'S BAKERIES INC OF DALLAS BIMBO WILL HELP
FINANCE MRS BAIRD'S PLANNED NATIONAL EXPANSION AND AMONG OTHER THINGS
MRS BAIRD'S WILL DISTRIBUTE BIMBO'S TORTILLA PRODUCTS

IN THE US THE BENEFITS OF THE MIGRATION ARE STARTING TO SHOW MCALLEN
EXPECTS THE ELASTICOS SELECTOS PLANT TO CREATE 400 NEW JOBS AND PUMP 25
MILLION TO 30 MILLION A YEAR INTO THE LOCAL ECONOMY GARLAND'S
BATHROOMTILE PLANT WILL GENERATE ANOTHER 400 JOBS AND BILINGUAL MANAGERS
IN THE US PEOPLE SUCH AS NATIVE TEXAN ROGER TREVINO ARE SUDDENLY IN
GREAT DEMAND MR TREVINO WHO FOUNDED HIS OWN LOCAL CANDY COMPANY IN 1986
IS NOW ALSO GENERAL MANAGER OF THE US SUBSIDIARY OF CHICLES CANELS SA OF
SAN LUIS POTOSI A MEXICAN CANDY MAKER LOOKING TO EXPAND ITS US MARKET

IN HIS CLUTTERED WAREHOUSE OFFICE IN SAN ANTONIO MR TREVINO SORTS THROUGH
MANGO/JALAPENO SWEETS PICKLEFLAVORED SALT PACKETS AND ODDLY TRUNCATED ICE
CREAM CONES FILLED WITH CAJETA A MEXICAN CARAMEL TREAT WHOSE OTHER NAME
LECHE QUEMADA TRANSLATES AS BURNT MILK

HIS TASK IS TO WINNOW RENAME AND REPACKAGE THESE MEXICAN TREATS TO APPEAL
TO AMERICAN KIDS HE SHOWS THE NEW COVER ART FOR LAVA ROCKS BRIGHTRED
CANDIES THAT FIZZ AND POP IN THE MOUTH HE DECIDED THAT NAME WOULD GO OVER
BETTER IN THE US THAN THE MEXICAN PRODUCT NAME OGRITOS OR LITTLE OGRES

IT'S JUST A QUESTION OF AMERICANIZING THINGS HE EXPLAINS 9402220140
940222 INDUSTRY FOCUS WESTERN ROADS FIND OPPOSING RIVAL WORKS WONDERS 
 UNION PACIFIC PLAN PROVIDES CHANCE FOR FIRMS TO WRING CONCESSIONS
FROM ICC  BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET
JOURNAL

WESTERN RAILROADS ARE SEEING A GRAVY TRAIN IN UNION PACIFIC CORP'S PLAN TO
TAKE VOTING CONTROL OF CHICAGO & NORTH WESTERN HOLDINGS CORP

SEVERAL WESTERN ROADS ARE PUBLICLY OPPOSING THE UNION PACIFIC'S APPLICATION
TO THE INTERSTATE COMMERCE COMMISSION TO TURN ITS NONVOTING SHARES OF THE
C&NW INTO A 295 VOTING STAKE BUT MANY OF THEM QUIETLY ARE USING THE
PROCEEDINGS TO WRING NEW CONCESSIONS FROM THE FEDERAL REGULATORS THE TACTIC
IS BEING CLOSELY WATCHED BY SHIPPERS TRUCKERS AND AFFECTED CITIES TO SEE
HOW DRASTICALLY THE WESTERN RAIL MAP WILL BE REDRAWN IN THE WAKE OF THE
UNION PACIFIC'S MOVE

IT ALREADY HAS PAID OFF FOR THE DAKOTA MINNESOTA & EASTERN RAILROAD SAYS
JC MCINTYRE PRESIDENT THE REGIONAL RAILROAD RECENTLY WITHDREW ITS
OPPOSITION TO THE TRANSACTION AFTER WINNING LONGSOUGHT FINANCIAL AND
MARKETING CONCESSIONS FROM C&NW OPPOSITION SAYS MR MCINTYRE PROVIDED
SOME LEVERAGE TO GET ISSUES RESOLVED

RAILROADS ARE HAVING A FEEDING FRENZY FIGHTING FOR TRACKAGE RIGHTS AND
CONDITIONS SAYS SCOTT FLOWER AN ANALYST AT KIDDER PEABODY & CO

FOR ITS PART UNION PACIFIC SAYS IT IS MERELY TRYING TO MAKE A CLOSE
RELATIONSHIP CLOSER AND DOESN'T UNDERSTAND THE FUSS UNION PACIFIC INSISTS
IT DOESN'T HAVE ANY CURRENT PLANS TO MERGE THE TWO SYSTEMS BUT IT WANTS TO
KEEP C&NW'S HIGHSPEED MAINLINE FROM CHICAGO TO OMAHA NEB AND ITS ROUTE
TO LOWSULFUR WYOMING COAL FIELDS OUT OF COMPETITORS' HANDS

THAT'S FINE WITH C&NW MANAGERS WE APPRECIATE THE SECURITY THEIR UNION
PACIFIC POSITION IN THE COMPANY GIVES US SAYS ROBERT SCHMIEGE CHAIRMAN
PRESIDENT AND CHIEF EXECUTIVE OFFICER HE ADDS THAT UNION PACIFIC'S 100
MILLION INVESTMENT IN C&NW SEVERAL YEARS AGO HELPED DEFEAT A HOSTILE
TAKEOVER ATTEMPT BY NEW YORK INVESTORS JAPONICA PARTNERS

SUPPORTERS SAY THAT LINKING THE TWO RAILROADS WOULD CREATE BENEFITS WITHOUT
EXCESSIVE COMPETITIVE HARM BECAUSE THEIR TRACKS CONNECT RATHER THAN OVERLAP
UNION PACIFIC TRACKS COVER MUCH OF THE WEST AND SOUTHWEST BUT DON'T REACH
INTO THE IOWA MINNESOTA WISCONSIN AND NORTHERN ILLINOIS STRONGHOLD OF THE
C&NW

AMONG THE BENEFITS THEY SAY ARE THE TWO RAILROADS' ENHANCED ABILITY TO
SPEAK WITH ONE VOICE WHEN SETTING RATES OFFERING NEW SERVICES AND LINKING
COMMUNICATIONS NETWORKS THAT IN TURN WOULD HELP THEM SMOOTH FREIGHT FLOWS
AND COMPETE WITH LONGHAUL TRUCKERS

THE NAME OF THE GAME IN RAILROADING MORE THAN EVER BEFORE IS MARKETING
SAYS WILLIAM WITHUHN TRANSPORTATION CURATOR AT THE SMITHSONIAN INSTITUTION
IN WASHINGTON THIS WOULD GIVE THE UNION PACIFIC MORE CENTRALIZED AUTHORITY
OVER MARKETING ALL THE WAY FROM CHICAGO TO LOS ANGELES AND EVERY OTHER POINT
SERVED BY THE TWO RAILROADS

NOT EVERY RAILROAD IS WORRIED UNION PACIFIC ALREADY EXERCISES A FAIR
AMOUNT OF OPERATIONAL CONTROL OVER CHICAGO & NORTH WESTERN AND CHANGING
THEIR OFFICIAL STATUS WOULDN'T REALLY MAKE THAT MUCH DIFFERENCE TO US SAYS
A SPOKESMAN FOR BURLINGTON NORTHERN INC WHICH WITHDREW ITS INITIAL
OPPOSITION

BUT OTHER RAILROADS FEAR AN INCREASINGLY POWERFUL UNION PACIFIC WHICH SINCE
1982 HAS ACQUIRED THE MISSOURI PACIFIC WESTERN PACIFIC AND
MISSOURIKANSASTEXAS RAILROADS

SOUTHERN PACIFIC RAIL FOR ONE WANTS THE TRANSACTION DENIED BUT FAILING
THAT THE COMPANY SEEKS PROTECTIVE CONDITIONS THAT WOULD ALLOW IT TO SERVE
SHIPPERS ON MOST PARTS OF C&NW'S TERRITORY AND THAT OF THE FORMER MISSOURI
PACIFIC AND MKT ROADS

SOUTHERN PACIFIC ALSO SEEKS THE RIGHT TO PARTICIPATE IN COMMERCIAL
COORDINATIONS REACHED BETWEEN UNION PACIFIC AND THE C&NW AND SOUTHERN
PACIFIC IS ASKING THE ICC FOR TOUGHER ANTIDISCRIMINATION MEASURES OVER
SOUTHERN PACIFIC'S EXISTING TRACKAGE RIGHTS ON UNION PACIFIC LINES THOSE
RIGHTS WERE GRANTED BY THE ICC TO PRESERVE RAIL COMPETITION BETWEEN NORTHERN
CALIFORNIA AND THE MIDWEST IN THE 1982 UNION PACIFIC/MISSOURI PACIFIC
MERGER

UNION PACIFIC DENIES IT DISCRIMINATES AGAINST SOUTHERN PACIFIC AND CHARGES
THAT SOUTHERN PACIFIC OWES NEARLY 60 MILLION IN UNPAID TRACK RENTAL
CHARGES THIS STRIKES UNION PACIFIC EXECUTIVES AS SOMEWHAT TWOFACED THEY
MAKE STATEMENTS ABOUT DISCRIMINATION ON THE TRACKAGE RIGHTS THEY ALREADY
HAVE ON UNION PACIFIC AND THEN THEY TURN AROUND AND ASK FOR RIGHTS ACROSS
THE REST OF OUR SYSTEM SAYS RICHARD DAVIDSON CHAIRMAN OF UNION PACIFIC'S
UNION PACIFIC RAILROAD

EDWARD MOYERS SOUTHERN PACIFIC'S CHIEF EXECUTIVE BRUSHES OFF SUCH
CRITICISM OUR CONDITIONS MERELY REDUCE WHAT UP WOULD TAKE AWAY HE SAYS

KANSAS CITY SOUTHERN INDUSTRIES INC IS ASKING THE ICC FOR HAULAGE RIGHTS ON
C&NW LINES TO IOWA'S GRAINPRODUCING REGIONS C&NW CURRENTLY TRANSPORTS IOWA
FEED GRAINS TO MIDWEST RAIL YARDS WHERE KANSAS CITY SOUTHERN TRAINS RELAY
THE SHIPMENTS TO SOUTHERN POULTRY FARMERS THIS TRAFFIC COULD BE DIVERTED TO
UNION PACIFIC LINES AFTER IT TAKES CONTROL OF THE C&NW FEARS LANDON
ROWLAND KANSAS CITY SOUTHERN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER
UNION PACIFIC WOULD HAVE AN INCENTIVE TO TAKE BUSINESS OFF OF OTHER
COMPETING RAILROADS AND PUT IT ON ITS ENLARGED FAMILY OF RAILROADS

SOO LINE IS LOBBYING THE ICC TO REMOVE A PROVISION FROM ITS 1931
TRACKSHARING ARRANGEMENT WITH C&NW BETWEEN KANSAS CITY AND POLO MO THE
PROVISION BLOCKS OTHER PARTIES FROM USING THE LINE C&NW USED THE PROVISION
TO BLOCK THE SALE OF SOO'S KANSAS CITYCHICAGO LINE TO SOUTHERN PACIFIC IN
1990

SOO LINE ISN'T ATTEMPTING TO INVADE THE TERRITORY OR SHIPPER BASE OF THE
UNION PACIFIC OR C&NW AS SOME OF THE CONDITIONS SOUGHT BY OTHERS WOULD DO
SAYS TERENCE HYNES AN OUTSIDE ATTORNEY FOR SOO LINE A UNIT OF CANADIAN
PACIFIC LTD ALL WE ARE ASKING FOR IS THE ELIMINATION OF THE VETO POWER
OVER THE COMPETITIVE RESPONSES WE MIGHT MAKE

MEANWHILE SHIPPERS ARE LINING UP BEHIND ONE SIDE OR THE OTHER DACOTAH
CEMENT IS OPPOSING THE APPLICATION UNTIL IT GETS A PROMISE FROM THE C&NW TO
RENOVATE TRACK AND IMPROVE SERVICE ON A LINE FROM RAPID CITY SD TO
CRAWFORD NEB

TYSON FOODS INC SUPPORTS THE TRANSACTION WHICH IS LIKELY TO LOWER FREIGHT
RATES AND ENCOURAGE SHIPMENTS OF FEED GRAIN TO CHICKEN FARMS IN THE SOUTH
SAYS DONALD SMITH DIRECTOR OF COMMODITY PURCHASING AT TYSON FOODS

OTHER SHIPPERS ARE RELUCTANT TO CHOOSE SIDES THOUGH I LIKE THE IDEA OF TWO
RAILROADS WORKING CLOSELY TOGETHER TO PROVIDE SEAMLESS SERVICE SAYS WOODY
RICHARDSON VICE PRESIDENT OF TRUCKRAIL AT SCHNEIDER NATIONAL INC A GREEN
BAY WIS TRUCKING COMPANY BUT OTHER RAILROADS ARE OPPOSING THIS MOVE
AND THE INDUSTRY HAS TO BE CONCERNED ABOUT THE COMPETITIVE NATURE OF THIS
9402220139 940222 LETTERS TO THE EDITOR STARK FIGURES OF CAPITAL
SENTENCING

CLINT BOLICK'S MEANSPIRITED ATTACK ON DEVAL PATRICK NOMINATED BY PRESIDENT
CLINTON TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION CONTAINS AN
ERRONEOUS DESCRIPTION OF A CASE AND AN ERRONEOUS REFERENCE TO ME CIVIL
RIGHTS NOMINEE QUOTA CLONE EDITORIAL PAGE FEB 2

THE ERRONEOUS DESCRIPTION IS OF MCCLESKEY V KEMP THE 1987 DECISION IN
WHICH THE SUPREME COURT REJECTED EVIDENCE OF RACIAL DISCRIMINATION IN THE
ADMINISTRATION OF THE DEATH PENALTY IN GEORGIA MR PATRICK SERVED AS
COUNSEL IN THE CASE MR BOLICK SUGGESTS THE CASE WAS REALLY ABOUT ASSURING
EQUALSENTENCING OUTCOMES A KIND OF QUOTA FOR CAPITAL PUNISHMENT BUT
THIS IS WRONG

MR BOLICK AS A DEVOTEE OF THE ORIGINAL UNDERSTANDING IN CONSTITUTIONAL
ADJUDICATION IS DOUBTLESS AWARE THAT A PRINCIPAL CONCERN OF THE FRAMERS OF
THE 14TH AMENDMENT WAS PROTECTING BLACK CITIZENS AGAINST THE UNEQUAL
ADMINISTRATION OF JUSTICE I FEAR THAT THE DATA SUGGEST THAT THIS IS
PRECISELY WHAT HAS BEEN GOING ON IN GEORGIA TO TAKE ONE EXAMPLE IT MAY BE
THAT MR BOLICK IS ABLE TO OFFER AN ALTERNATIVE EXPLANATION FOR THE FACT
THAT A BLACK PERSON WHO KILLS A WHITE PERSON IS 24 TIMES AS LIKELY AS A
BLACK PERSON WHO KILLS A BLACK PERSON TO BE SENTENCED TO DEATH IN GEORGIA
BUT TO ME IT LOOKS AS THOUGH SENTENCING JURIES DO NOT VALUE THE LIVES OF
BLACK MURDER VICTIMS VERY HIGHLY OF COURSE ONE DOES NOT WANT A CAPITAL
SENTENCING QUOTA BUT ONE ALSO DOES NOT WANT TO PRETEND THAT SUCH STARK
FIGURES AS THESE ARE SIMPLY A STATISTICAL GLITCH WITH NO STORY TO TELL WHEN
THE SUPREME COURT DECIDED IN FAVOR OF THE STATE IT LIKE MR BOLICK 
SIMPLY IGNORED THE NUMBERS RATHER THAN TRYING TO FIGURE OUT WHAT MIGHT BE
CAUSING THEM

THE ERRONEOUS DESCRIPTION OF ME IS ONE THAT MR BOLICK HAS UNFORTUNATELY
REPEATED IN OTHER FORUMS INCLUDING TELEVISION INTERVIEWS HE HAS SUGGESTED
BECAUSE OF SOME WRITING THAT I HAVE DONE THAT I WOULD BE A BETTER CANDIDATE
TO HEAD THE CIVIL RIGHTS DIVISION THAN MR PATRICK THAT IS ABSURD I HAVE
ZERO BACKGROUND AND EXPERIENCE IN THE FIELD THE LITIGATION OF CIVIL RIGHTS
CASES LIKE THE LITIGATION OF CASES INVOLVING ANTITRUST ENVIRONMENTAL LAW
OR ANY OTHER SPECIALTY IS COMPLICATED I WOULD PREFER TO LEAVE IT TO THE
EXPERTS AN AWFUL LOT OF THOSE EXPERTS WORK FOR THE NAACP LEGAL DEFENSE FUND
 AN EXCELLENT ORGANIZATION THAT HAS FOUGHT THE BATTLE FOR RACIAL JUSTICE
FOR SIX DECADES BUT WHICH MR BOLICK TREATS WITH UNEXPLAINED AND
UNWARRANTED CONTEMPT

THIS IS NO WAY TO RUN OUR CONFIRMATION PROCESS MR PATRICK HAS A FINE
RECORD AND HE DESERVES TO BE CONFIRMED

CONTRARY TO MR BOLICK'S STATEMENT THE US COMMISSION ON CIVIL RIGHTS IS
NEITHER MORIBUND NOR IRRELEVANT THE AGENCY'S MAJOR PROBLEM IS NOT THE
LEFTWING IDEOLOGY OF ITS NEW CHAIRMAN MARY FRANCIS BERRY IN FACT THERE
IS AN APPROPRIATE IDEOLOGICAL BALANCE AMONG THE COMMISSIONERS AND THE
LIBERAL MEMBERS OF THE COMMISSION HAVE SHOWN A WILLINGNESS TO WORK WITH
MODERATE AND CONSERVATIVE COMMISSIONERS IN DEVELOPING VALUABLE NEW
APPROACHES TO CIVIL RIGHTS

THE REAL CIVIL RIGHTS ISSUES OF THE 1990S AND BEYOND ARE DIFFERENT FROM
THOSE OF THE 1960S THEY INCLUDE FIRST EMPOWERMENT STRATEGIES FOR
MINORITIES AND THE POOR AND SECOND THE GROWING THREAT OF RELIGIOUS
DISCRIMINATION

THE VIRTUAL ELIMINATION OF LEGAL BARRIERS TO FULL PARTICIPATION IN POLITICAL
AND SOCIAL LIFE BY MINORITIES TESTIFIES ELOQUENTLY TO THE MORAL AND
POLITICAL EFFECTIVENESS OF THE MOVEMENT'S POSTWORLD WAR II LEADERSHIP AT
LAST JUNE'S HEARINGS IN LOS ANGELES UNDER THE SKILLFUL CHAIRMANSHIP OF THE
REV ART FLETCHER WHO REMAINS ON THE COMMISSION WE TURNED OUR ATTENTION
TO EXPANDING ACCESS TO PRIVATESECTOR JOBS HOME OWNERSHIP EDUCATIONAL
CHOICE AND SEED CAPITAL FOR NEW ENTERPRISES AND MORTGAGES IN INNER CITIES
TAKING ADVANTAGE OF THE EXPERTISE OF COMMISSIONER RUSSELL REDENBAUGH WE ARE
EXAMINING PRIVATE MARKETBASED METHODS TO EMPOWER THE POOR AND URBAN
MINORITIES SUCH AS ENTERPRISE ZONES CAPITALGAINS TAX CUTS AND REDUCING
GOVERNMENT REGULATIONS THESE NEXTGENERATION CIVIL RIGHTS CONCERNS WHICH
WERE REPORTED ON THE WALL STREET JOURNAL EDITORIAL PAGE WILL BE REFLECTED
IN THE COMMISSION'S REPORT ON LOS ANGELES

THE COMMISSION HAS ALSO BEGUN TO CALL ATTENTION TO THE FRIGHTENING RISE IN
ATTACKS ON HOUSES OF WORSHIP DISRUPTIONS OF RELIGIOUS SERVICES AND
DISCRIMINATION AGAINST CHRISTIANS JEWS AND OTHER BELIEVERS AT OUR JANUARY
MEETING WE HELD A VALUABLE PUBLIC BRIEFING WITH A DIVERSE GROUP OF EXPERTS
ON RELIGIOUS DISCRIMINATION COMMISSIONERS ARE TAKING THE INITIATIVE IN
DENOUNCING THE OVERT AND EXPOSING THE SUBTLER FORMS OF RELIGIOUS
INTOLERANCE

THESE ISSUES ARE HARDLY UNCONTROVERSIAL IN SOME GOVERNMENT MEDIA AND
ACADEMIC CIRCLES ANTICATHOLICISM ANTIEVANGELICALISM AND ANTISEMITISM
HAVE BEEN GIVEN A NEW LEASE ON LIFE AND REGRETTABLY EMPOWERMENT STRATEGIES
FOR BLACKS HISPANICS OTHER URBAN MINORITIES AND THE POOR WOULD NOT BE
WELCOME BY CERTAIN IDEOLOGICAL ELITES WHOSE REAL INTERESTS ARE SERVED BY
MAINTAINING THE STATUS QUO

IN FACT ONE WOULD HARDLY BE SURPRISED IF THE COMMISSION'S BOLDNESS IN
CONFRONTING THE CIVIL RIGHTS PROBLEMS OF THE '90S PROVOKED AN ATTACK ON THE
COMMISSION'S INDEPENDENCE SUCH AN ATTACK MUST BE FIRMLY RESISTED BY ALL
CONSERVATIVES AND LIBERALS WHO ARE SINCERELY CONCERNED FOR THE FUTURE OF
CIVIL RIGHTS A STRONG AND INDEPENDENT CIVIL RIGHTS COMMISSION CAN AND I
BELIEVE WILL LEAD BOTH THE FIGHT AGAINST RELIGIOUS BIGOTRY AND THE STRUGGLE
FOR ECONOMIC EMPOWERMENT OF THOSE WHO HAVE BEEN TWICE VICTIMIZED FIRST BY
DISCRIMINATION AND THEN BY MISGUIDED POLICIES THAT LOCK THEM INTO A LIFE OF
DEPENDENCY AND DESPAIR 9402220138 940222 FINANCING BUSINESS WESTERN
GAS RESOURCES

WESTERN GAS RESOURCES INC DENVER SAID IT IS OFFERING 24 MILLION SHARES
OF 2625 CUMULATIVE CONVERTIBLE PREFERRED STOCK THE NATURAL GAS COMPANY
SAID IT WILL USE THE PROCEEDS FROM THE 120 MILLION OFFERING TO PAY PART OF
THE DEBT INCURRED IN ACQUIRING MOUNTAIN GAS RESOURCES INC AND THE BLACK
LAKE PROCESSING FACILITY AND RELATED RESERVES IN 1993 MORGAN STANLEY & CO
AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP ARE UNDERWRITING THE
OFFERING AND HAVE AN OPTION TO PURCHASE AS MANY AS 360000 ADDITIONAL SHARES
TO COVER OVERALLOTMENTS 9402220136 940222 BUSINESS BRIEF CHIPCOM
CORP SALES AND SUPPORT OFFICES ARE OPENED IN CHINA ITALY

CHIPCOM CORP SAID IT OPENED NEW SALES AND SUPPORT OFFICES IN BEIJING AND
MILAN

THE SOUTHBOROUGH MASS COMPANY SAID THAT WITH THE OFFICE IN BEIJING IT
IS THE FIRST USBASED COMPUTER NETWORKING CONCERN TO ESTABLISH A PRESENCE
IN MAINLAND CHINA

THE OFFICES WILL BE RESPONSIBLE FOR NEWBUSINESS DEVELOPMENT AND WILL ALSO
SUPPORT CHIPCOM'S EXISTING RESELLERS AND USERS IN THE TWO COUNTRIES IT
SAID

MORE THAN 42 OF CHIPCOM'S 1993 SALES OR 636 MILLION WERE DERIVED FROM
INTERNATIONAL MARKETS A 76 INCREASE OVER THE YEAREARLIER PERIOD CHIPCOM
SAID 9402220135 940222 INTERNATIONAL BRIEF KONINKLIJKE AHOLD NV 
DUTCH GROUP AGREES TO BUY RED FOOD STORES INC OF US

KONINKLIJKE AHOLD NV A DUTCH FOOD RETAILING GROUP SAID IT HAS AGREED IN
PRINCIPLE TO BUY RED FOOD STORES INC FROM PROMODES OF FRANCE FOR AN AMOUNT
IT WOULDN'T DISCLOSE

AHOLD SAID THE ACQUISITION OF RED FOOD A US FOOD STORE CHAIN WITH ANNUAL
SALES OF ABOUT 585 MILLION WOULD BE A CLEAR PLUS FOR THE DUTCH COMPANY'S
GROWING AMERICAN BUSINESS 9402220134 940222 LETTERS TO THE EDITOR 
CREATIVE DESTRUCTION VS DEMING'S VISION

YOUR TWO OPPOSING VIEWPOINT EDITORIAL FEATURES ON EDWARDS DEMING A LASTING
LEGACY FOR MANAGERS JAN 31 SHOW THE BASIC CONTROVERSY THAT APPLICATION
OF HIS PRINCIPLES CONTINUES TO PROVOKE AS RICHARD GORDON INDICATES
DEMING'S THINKING PROVIDES WORKERS AND MANAGERS WITH A FOCUS A CONSTANCY OF
PURPOSE AMONG OTHER THINGS YET AS WILLIAM G LEE POINTS OUT THE DEMING
APPROACH OFTEN HAS A DOGMATIC SIDE THAT CAN FRUSTRATE INNOVATIVE CREATIVE
ACTIVITIES WITHIN A FIRM

DEMING'S IDEAS PERHAPS CAN MORE USEFULLY BE ANALYZED WITHIN THE CONTEXT OF
THE DEMANDS PLACED ON THE FIRM BY COMPETITIVE MARKETS WHICH SELDOM IS
DONE BY HIS SUPPORTERS FIRMS UNDER COMPETITIVE PRESSURES INVARIABLY NEED TO
ENGAGE IN RADICAL ENTREPRENEURIAL CHANGE IN ORDER TO CREATE VALUE AND
SURVIVE ENTREPRENEURSHIP WITHIN ORGANIZATIONS OFTEN UNAVOIDABLY ALTERS
BUSINESS PRACTICES IN FUNDAMENTAL WAYS AND THEREFORE THREATENS INCREMENTAL
QUALITY IMPROVEMENT EFFORTS OF TOTAL QUALITY MANAGEMENT SIMILARLY IN THE
EYES OF THE INNOVATOR CAUTIOUS PROCESS IMPROVEMENT EFFORTS OFTEN SLOW OR
DESTROY THE INCENTIVES FOR USEFUL RADICAL CHANGE

WHO'S RIGHT BOTH ARE I BELIEVE MANAGERS WILL ALWAYS STRUGGLE WITH THIS
FUNDAMENTAL TENSION BETWEEN RADICAL INNOVATION AND PROCESS IMPROVEMENT IF
THEY ARE DOING THEIR JOBS WELL NO SIMPLE RULES CAN PROVIDE A
ONCEANDFORALL SOLUTION IN A DYNAMIC ECONOMY NO RHETORICAL GLIBNESS CAN
ELIMINATE THE FACT THAT CREATIVE DESTRUCTION WITHIN THE FIRM OFTEN
DISABLES DEMINGSTYLED EFFORTS DEMING'S IDEAS AS WELL AS ENTREPRENEURIAL
VIEWS OF MANAGEMENT HAVE MUCH GREATER POWER WHEN SUBORDINATED TO A VISION
OF THE FIRM'S PURPOSE AS CREATING VALUE WITHIN A COMPETITIVE MARKETPLACE

STRANGE AS IT SEEMS I APPRECIATED BOTH PAIRED PIECES WHICH FOCUSED ON BOTH
THE DANGERS OF TAKING ANY MANAGEMENT THEORY INCLUDING EDWARDS DEMING'S TOO
LITERALLY AND WITHOUT REALITY ADAPTATION WHILE AFFIRMING THE POWERFUL
ORGANIZATION TRANSFORMATION CONTRIBUTIONS OF DEMING'S BRAND OF TOTAL
QUALITY

MY OWN PERSONAL PERHAPS LESS TRADITIONAL DEMING MEMORY I APPROACHED DR
DEMING DURING ONE OF HIS CHALLENGING AND INSPIRING FOURDAY WORKSHOPS AND
PERSONTOPERSON ASKED HIM HOW HE SAW DIVERSITY WORKPLACE INITIATIVES IN
THE CONTEXT OF A BUSINESS'S QUALITY TRANSFORMATION I DON'T KNOW THAT MUCH
ABOUT RACE AND GENDER ISSUES HE SAID ALL I WILL TELL YOU IS THAT ANY
ORGANIZATION THAT EXCLUDES OR UNDERUTILIZES ITS HUMAN TALENT BECAUSE OF
RACE GENDER OR NATIONAL ORIGIN SIMPLY UNDERMINES ITS ABILITY TO OPTIMIZE
ITS SYSTEM 9402220133 940222 ALPINE LACE SELLS STAKE IN UNIT

MAPLEWOOD NJ ALPINE LACE BRANDS INC SAID IT SOLD 65 OF ITS MOUNTAIN
FARMS SUBSIDIARY IN LOGAN UTAH TO JR SIMPLOT CO A PRIVATE CONGLOMERATE
BASED IN BOISE IDAHO

ALPINE LACE A MAKER AND DISTRIBUTOR OF CHEESE SAID TERMS OF THE SALE WILL
BE DISCLOSED WITHIN 15 DAYS IN A FORM 8K FILING WITH THE SECURITIES AND
EXCHANGE COMMISSION

THE COMPANY SAID PROCEEDS FROM THE SALE WILL BE USED TO REDUCE DEBT
9402220132 940222 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY  
COOKED WITH HOT OLYMPIC LOGO EVEN SARDINES BECOME PLAT DU JOUR  
BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL

LILLEHAMMER FASTER HIGHER STRONGER IS THE MOTTO OF THE OLYMPICS AT
THESE NORWEGIAN GAMES IT INSPIRES BOTH ATHLETE AND SARDINE

IN THIS COUNTRY OF VORACIOUS FISH EATERS SARDINES HAVEN'T BEEN MOVING WELL
IN RECENT YEARS LAGGING BEHIND SALMON AND MACKEREL SALES OF THE TINY TINS
WERE AS SQUEEZED AS THE LITTLE FISH INSIDE THEN LAST MAY PROCORDIA FOOD
NORWAY ONE OF THE OLYMPIC SPONSORS PUT THE LOGO OF THE LILLEHAMMER WINTER
GAMES ON ITS SARDINE CANS ALMOST OVERNIGHT SALES DOUBLED THEN TRIPLED

SARDINES USED TO BE A PRODUCT THAT OLDER PEOPLE ATE SAYS ALF JOHAN SVELE
THE COMPANY'S PRESIDENT SINCE THE OLYMPIC MARKETING PROGRAM SARDINES HAVE
BECOME TRENDY

TRANSFORMING SARDINES FROM EEK TO CHIC IS TESTAMENT ENOUGH TO THE POWER OF
THE OLYMPIC FIVERING LOGO BUT SALES OF OTHER PEDESTRIAN ITEMS SUCH AS
KETCHUP CAVIAR PASTE MASHED POTATOES GOAT CHEESE SHEEP BELLS AND PINS 
ANYTHING BEARING THE OLYMPIC SEAL HAVE ALSO BEEN SOARING FASTER HIGHER
STRONGER AND THIS IN A LAND WHERE SALES GIMMICKS ARE USUALLY RUN OUT OF
TOWN FASTER THAN STRAY MOOSE

IT IS STRANGE I MUST ADMIT SAYS SIGMUND THUE MARKETING DIRECTOR OF THE
LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE WE COULD NEVER HAVE PREDICTED THE
SUCCESS OF OUR PROGRAM

MORE RECORDS HAVE BEEN SET IN LOOC'S MARKETING ARENA THAN ON LILLEHAMMER'S
SNOW AND ICE THE LICENSING PROGRAM WHICH MARKETS OFFICIALLY LICENSED
OLYMPIC PRODUCTS HAS SO FAR YIELDED 170 MILLION IN TOTAL RETAIL SALES
WITH LOOC GARNERING ROYALTIES OVER 15 MILLION THESE ARE WINTER OLYMPIC
RECORDS

MOST IMPRESSIVE HAS BEEN THE SALES OF PINS BEARING THE LOOC LOOK SO FAR
MORE THAN 17 MILLION HAVE BEEN SOLD IN THIS COUNTRY WHICH IS ABOUT FOUR
PINS PER NORWEGIAN IT IS A PERFORMANCE THAT THE ORGANIZERS OF THE 1996
SUMMER OLYMPICS IN ATLANTA WILL BE HARD PRESSED TO MATCH

I'VE TOLD MY ATLANTA COLLEAGUES THAT WHEN THEY HAVE SOLD 750 MILLION PINS
THEY WILL BE NEAR THE SAME LEVEL AS US LAUGHS MR THUE AND THEN THEY
WILL HAVE PAID FOR THE OLYMPICS AS WELL

IT SEEMS ONLY NATURAL THAT IF 100000 NORWEGIANS STAND IN SUBZERO
TEMPERATURES TO WATCH OLYMPIC CROSSCOUNTRY RACES THEY WOULD ALSO BE
ATTRACTED TO SARDINE CANS SPORTING THE OLYMPIC RINGS AND THE LILLEHAMMER
LOGOS WITH THE PREHISTORIC PICTOGRAMS AND ABSTRACT NORTHERN LIGHTS APPEAL
TO THE NORWEGIANS' STRONG BOND TO TRADITION

BUT THE LICENSING SUCCESS ALSO COMES FROM A SHREWD STRATEGY TO PROFIT FROM
AN OFTNEGLECTED PART OF OLYMPIC MARKETING PAST OLYMPIC ORGANIZERS ADVISED
LOOC TO CONCENTRATE ITS REVENUE GATHERING ON BROADCAST RIGHTS SPONSOR FEES
TICKET SALES AND TRADITIONAL FRILLS LIKE STAMPS AND COINS

THE CONCLUSION WAS THAT A LICENSING PROGRAM IS LITTLE MONEY AND A LOT OF
PROBLEMS MR THUE RECALLS DULY WARNED LOOC ORGINALLY BUDGETED 3 MILLION
FOR LICENSING INCOME

BUT BLESSED WITH A HANDSOME EYECATCHING DESIGN LOOC PUT TOGETHER A
LICENSING PACKAGE THAT INCLUDED THE LOGO MASCOTS AND COLORS AS WELL AS THE
UBIQUITOUS PICTOGRAMS AND SNOW CRYSTAL PATTERNS IT THEN LIMITED THE
LICENSING TO HIGHQUALITY PRODUCTS FROM 36 COMPANIES REJECTING ANY
PROPOSALS FOR CHEAP PLASTIC PRODUCTS

FIRST TO HIT THE STORES WERE ITEMS LIKE SWEATERS TSHIRTS BACKPACKS AND
SKIS TO GET NORWEGIAN CONSUMERS FAMILIAR WITH THE LOGOS THEN LOOC LAUNCHED
A NATIONWIDE OLYMPIC TORCH RELAY THAT PASSED THE FLAME TO 75 TOWNS
STRETCHING FAR ABOVE THE ARCTIC CIRCLE TWO PIN PEDDLERS AND TRUCKS JAMMED
WITH 10 LICENSED PRODUCTS FOLLOWED THE TORCH AND THE RESULTING OLYMPIC
FEVER IN NOVEMBER AND DECEMBER ALONE LOOC POCKETED SOME 4 MILLION IN
LICENSING ROYALTIES

EVEN ON THE ARCTIC OCEAN ISLAND OF SVALBARD NEXT STOP IS THE NORTH
POLE SAYS ONE OF THE RESIDENTS OLYMPIC MERCHANDISE IS AS THICK AS THE
SNOW WHEN THE TORCH CAME TO TOWN IT LEFT BEHIND A DOZEN PIN TRADERS
INCLUDING 12YEAROLD SILJE SOLEND WHOSE COLLECTION IS NEARING 200 HER
FATHER AMUND SMITTEN BY OLYMPIC FEVER ORDERED A SET OF SOME 50 OLYMPIC
PINS WHERE THE NORWEGIAN FLAG IS MATCHED WITH THE FLAGS OF OTHER COUNTRIES

I FIGURED THIS WAS THE ONLY CHANCE FOR NORWAY TO HAVE THE OLYMPICS IN OUR
LIFETIME SAYS MR SOLEND 9402220131 940222 MARKETING & MEDIA P&G
SLATES CHINESE VENTURE

CINCINNATI PROCTER & GAMBLE CO SAID IT SIGNED AN AGREEMENT TO ESTABLISH
A JOINT VENTURE IN CHINA WITH GUANGZHOU LONKEY INDUSTRIAL CO AND HUTCHISON
WHAMPOA LTD TO MAKE AND MARKET LAUNDRY DETERGENT

THE JOINT VENTURE PROCTER & GAMBLE LONKEY DETERGENT LTD WILL MAKE
DETERGENT AT THE GUANGZHOU LONKEY INDUSTRIAL FACILITY IN SOUTHERN CHINA AND
MARKET IT UNDER GUANGZHOU LONKEY'S BRAND NAMES

HUTCHISON WHAMPOA A HONG KONGBASED CONGLOMERATE IS A PARTNER IN P&G'S
OTHER CHINESE JOINT VENTURES 9402220130 940222 ECONOMY TRACKING THE
ECONOMY

KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9402220129 940222
BUSINESS BRIEF VALSPAR CORP UNIT PAYS CARGILL 90 MILLION FOR
RESINPRODUCTS DIVISION

VALSPAR CORP SAID ITS MCWHORTER RESINS INC UNIT COMPLETED THE ACQUISITION
OF THE RESINPRODUCTS DIVISION OF CARGILL INC

VALSPAR AGREED IN MAY TO PAY ABOUT 90 MILLION FOR THE DIVISION A MAKER OF
SPECIALIZED RESINS USED IN PAINTS AND FIBERGLASS PRODUCTS

THE MINNEAPOLIS COMPANY SAID THAT EFFECTIVE IMMEDIATELY ITS RESIN BUSINESS
WILL BE OPERATED AS TWO SEPARATE COMPANIES MCWHORTER TECHNOLOGIES INC AND
ENGINEERED POLYMER SOLUTIONS INC

VALSPAR PLANS TO SPIN OFF MCWHORTER TECHNOLOGIES THE LARGER OF THE TWO
SEPARATE RESIN BUSINESSES THROUGH A DISTRIBUTION OF SHARES TO ITS
SHAREHOLDERS IN APRIL OR MAY 9402220128 940222 END TRADE WAR LET JAPAN
INVEST AND SAVE  BY STEPHEN J ENTIN

AS THE CLINTON ADMINISTRATION PRESSES FOR ACCESS TO JAPANESE MARKETS
JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA FACES THE TASK OF REPAIRING THE
JAPANESE ECONOMY IF HE REPEATS THE POLICY ERRORS OF RECENT ECONOMIC
STIMULUS PACKAGES HE WILL BOTCH THE JOB HIS WILL BECOME THE SECOND
GOVERNMENT IN TWO YEARS TO BE DESTROYED IN PART BY BAD ADVICE FROM THE
JAPANESE MINISTRY OF FINANCE AND THE US TREASURY IF INSTEAD HE IS
REVOLUTIONARY IN HIS ECONOMIC POLICY THINKING AND FOLLOWS NOTSORECENT
POLICY PRECEDENTS THE JAPANESE ECONOMIC MIRACLE COULD BE REBORN IMPORTS
COULD RISE TOO WITHOUT THE NUMERICAL TARGETS THAT THE CLINTON TEAM IS
DEMANDING

DURING MR HOSOKAWA'S RECENT VISIT TO WASHINGTON DEPUTY TREASURY SECRETARY
ROGER ALTMAN ACCUSED JAPAN OF DRAINING DEMAND FROM THE REST OF THE WORLD
BY RUNNING A BIG TRADE SURPLUS THE US TREASURY WANTS PERMANENT TAX CUTS
IN JAPAN TO BOOST ITS CONSUMPTION STIMULATE ITS ECONOMY AND REDUCE ITS
TRADE SURPLUS PRESIDENT CLINTON IS THREATENING TRADE SANCTIONS

THE TREASURY'S DEMAND ANALYSIS OF JAPAN'S TAX CUT AND ITS CURRENTACCOUNT
SURPLUS IS RIDICULOUS THE CURRENT ACCOUNT MEASURES THE NET BALANCE OF TRADE
IN GOODS SERVICES AND SOME TRANSFERS JAPAN'S CURRENTACCOUNT SURPLUS IS
MATCHED DOLLAR FOR DOLLAR BY A CAPITALACCOUNT DEFICIT THE CAPITAL ACCOUNT
MEASURES NET CAPITAL OUTFLOW JAPAN'S NET PURCHASES OF FOREIGN STOCKS AND
BONDS AND DIRECT INVESTMENT IN PLANT EQUIPMENT AND REAL ESTATE ABROAD ADD
AS MUCH DIRECTLY OR INDIRECTLY TO RESTOFWORLD DEMAND AS ITS
CURRENTACCOUNT SURPLUS REMOVES

THERE ARE TWO WAYS FOR A COUNTRY TO REDUCE ITS CURRENTACCOUNT SURPLUS CUT
SAVING OR RAISE DOMESTIC INVESTMENT CUTTING SAVING SLOWS THE COUNTRY'S
INCOME GROWTH AND THAT OF THE REST OF THE WORLD WHICH HAS LESS CAPITAL TO
WORK WITH RAISING DOMESTIC INVESTMENT SPEEDS THE COUNTRY'S GROWTH AND AS
PRODUCTION INCOME AND IMPORTS RISE SPEEDS GROWTH OF THE REST OF THE WORLD
CLEARLY THE LATTER COURSE IS PREFERABLE

NEITHER WASHINGTON NOR JAPAN SEEMS TO UNDERSTAND THE DISTINCTION THE WORLD
NEEDS MORE SAVING AND INVESTMENT NOT LESS THE LAST THING THE US SHOULD
DO IS TO BASH JAPAN FOR ITS SAVING RATE OR START A CURRENTACCOUNT TRADE
WAR

JAPAN NEEDS TO RETURN TO THE ROOTS OF ITS ECONOMIC MIRACLE IN THE 1960S AND
1970S JAPAN ENACTED A SERIES OF INCENTIVECREATING TAX CUTS WIDENING TAX
BRACKETS SO THAT WORKERS FACED LOWER MARGINAL TAX RATES IN MOST COUNTRIES
INCOME IS TAXED WHEN EARNED AND IF SAVED THE EARNINGS OF THE SAVINGS ARE
TAXED AGAIN IN JAPAN HOWEVER SAVERS WERE PROTECTED FROM DOUBLE TAXATION
IN POSTAL SAVINGS SAVINGS BANK AND GOVERNMENT BOND ACCOUNTS WHERE LARGE
AMOUNTS OF INTEREST EARNINGS WERE NOT TAXED SAVING FOR A HOME WAS
SHELTERED DIVIDENDS WERE PARTLY SHELTERED FROM DOUBLE TAXATION WITH A
SPECIAL REDUCED TAX RATE THERE WAS NO CAPITALGAINS TAX JAPAN SAVED
INVESTED AND BOOMED

IN RECENT YEARS JAPAN HAS FORGONE NET TAX CUTS IN FAVOR OF HIGHER
GOVERNMENT SPENDING AND INFRASTRUCTURE INVESTMENT THE DISASTROUS MIYAZAWA
TAX REFORMS OF 198889 CURBED TAXEXEMPT SAVING AND INSTITUTED A
CAPITALGAINS TAX WITH LITTLE IN THE WAY OF MARGINAL INCOMETAX RATE RELIEF
TO SHOW FOR IT FURTHERMORE AT THE INSISTENCE OF THE FINANCE MINISTRY A
CONSUMPTION TAX WAS INSTITUTED TO AVOID ANY INCREASE IN THE DEFICIT FROM THE
INCOME TAX CUT AND EXPENDITURE HIKES

JAPAN'S PROGRAM TO REDUCE PRIVATE SAVING AND INCREASE PUBLIC SPENDING HAS
BEEN A FINANCIAL AND ECONOMIC DISASTER THE CAPITALGAINS TAX AND HIGHER
TAXES ON SAVING HELPED TO COLLAPSE THE STOCK MARKET REALESTATE VALUES THE
BALANCE SHEETS OF THE BANKS AND CAPITAL FORMATION INCOME GAINS HAVE BEEN
SLASHED UNEMPLOYMENT HAS RISEN JOB SECURITY HAS BEEN SHATTERED SLOWER
GROWTH OF PRODUCTION AND INCOME HAS SLOWED IMPORTS MAKING A MOCKERY OF THE
ADVICE FROM ABROAD THAT HIGHER TAXES ON SAVING AND INVESTMENT WOULD REDUCE
THE TRADE SURPLUS

THE DEBATE IN JAPAN NOW CENTERS ON AN INCOMETAX REDUCTION TO STIMULATE
CONSUMPTION EGGED ON THIS TIME BY THE CLINTON TREASURY THE PRIME
MINISTER AT THE INSISTENCE OF THE FINANCE MINISTRY INITIALLY PROPOSED TO
RAISE THE CONSUMPTION TAX TO 7 FROM 3 TO PAY FOR THE INCOMETAX CUT AFTER
A TUG OF WAR BETWEEN THE SOCIALISTS AND THE FINANCE MINISTRY AN ABSURD
COMPROMISE WAS REACHED UNDER WHICH THERE WOULD BE NO CONSUMPTIONTAX HIKE
BUT THE INCOMETAX CUT A 20 ACROSSTHEBOARD REDUCTION WOULD BE FOR
ONE YEAR ONLY MANY OBSERVERS FEAR THAT THE TEMPORARY TAX CUT WILL BE SAVED
INSTEAD OF CONSUMED NEGATING THE SUPPOSED DEMAND STIMULUS

THESE ARGUMENTS ABOUT CONSUMPTION SAVING AND DEMAND STIMULUS ARE KEYNESIAN
NONSENSE TAX CUTS DON'T WORK BY GIVING PEOPLE MONEY TO SPEND A TAX CUT
PERMANENT OR TEMPORARY UNMATCHED BY A SPENDING CUT PUMPS NO MONEY INTO
THE ECONOMY THE TAX CUT IS MATCHED YEN FOR YEN BY HIGHER GOVERNMENT
BORROWING THERE IS NO DEMAND STIMULUS AN INCOMETAX CUT OFFSET BY A
CONSUMPTION TAX HIKE WOULD LIKEWISE PRODUCE NO DEMAND INCREASE

WHAT JAPAN NEEDS TO DO NOW IS TO DESIGN A PERMANENT INCENTIVEORIENTED
INCOMETAX REDUCTION AND PAY FOR THE BULK OF IT WITH SPENDING RESTRAINT TO
FREE UP REAL RESOURCES FOR PRIVATESECTOR USE

THE FORM AND DURATION OF THE TAX CUTS ARE CRITICAL FIRST THE CUT MUST BE
OF A FORM THAT INCREASES INCENTIVES FORTUNATELY THE PROPOSED INDIVIDUAL
INCOMETAX CUT IS ALREADY AN ACROSSTHEBOARD REDUCTION AKIN TO A CUT IN
MARGINAL INCOMETAX RATES WHICH IF MADE PERMANENT WOULD BE AN INCENTIVE
TO INCREASE WORK SAVING AND INVESTMENT IN JAPAN BUT THE CUT MUST BE
PERMANENT A ONEYEAR TAX CUT WILL NOT INDUCE BUSINESSES TO UNDERGO THE COST
OF HIRING AND TRAINING PERMANENT NEW WORKERS OR TO PURCHASE PLANT AND
EQUIPMENT THAT LASTS FOR YEARS OTHER NEEDED STEPS INCLUDE RESTORING THE
PROTECTION FROM DOUBLE TAXATION FOR SAVING AND REPEALING THE CAPITALGAINS
TAX THE CONSUMPTION TAX SHOULD NOT BE RAISED

THE RECOMMENDED CHANGES WOULD RAISE THE AFTERTAX REWARD TO ADDITIONAL
LABOR SAVING AND INVESTMENT SUPPLY AND DEMAND WOULD RISE TOGETHER LOWER
PRODUCTION COSTS AND HIGHER RETURNS ON CAPITAL IN JAPAN WOULD REDUCE THE
CAPITAL OUTFLOW WHICH ALONG WITH GROWTH WOULD REDUCE THE TRADE SURPLUS

HOW DO WE KNOW THAT THESE POLICIES WOULD WORK AS ADVERTISED ONE ANSWER LIES
WITH THE SUCCESS OF AMERICA'S 1981 TAX CUTS PERHAPS A MORE COMPELLING ONE
COMES FROM JAPAN'S OWN HISTORY IN THE 1960S AND 1970S JAPAN SHOWED THE
WORLD WHAT INCENTIVE ECONOMICS COULD DO FOR GROWTH

MR ENTIN IS RESIDENT SCHOLAR AT THE INSTITUTE FOR RESEARCH ON THE ECONOMICS
OF TAXATION IN WASHINGTON 9402220127 940222 SUMITOMO TO EXPAND ITS
CABLETV SYSTEMS IN JAPAN THIS YEAR

TOKYO SUMITOMO CORP ONE OF JAPAN'S LARGEST OPERATORS OF
CABLETELEVISION STATIONS PLANS THIS YEAR TO EXPAND ITS HOLDINGS OF
JAPANESE CABLE SYSTEMS BY NEARLY 50

SUMITOMO PLANS TO ACQUIRE EQUITY STAKES IN SIX OR SEVEN CABLE SYSTEMS ACROSS
JAPAN BY THE END OF THE YEAR YASUSHIGE NISHIMURA DEPUTY GENERAL MANAGER OF
SUMITOMO'S MEDIABUSINESS DIVISION SAID IN AN INTERVIEW MANY OF THOSE
STATIONS WILL BE IN RURAL AREAS MR NISHIMURA SAID

THE NEW ACQUISITIONS WILL BE IN ADDITION TO THE 13 SYSTEMS MOSTLY IN THE
TOKYO AND OSAKA AREAS IN WHICH SUMITOMO NOW HOLDS AN INTEREST THE GIANT
TRADING COMPANY HAS ALREADY INVESTED 200 MILLION TO 300 MILLION OF DEBT
AND EQUITY IN ITS JAPANESE CABLESYSTEM HOLDINGS THE ADDITIONAL STATIONS
WILL BRING SUMITOMO'S TOTAL INVESTMENT TO ROUGHLY 400 MILLION MR
NISHIMURA SAID

ON AVERAGE SUMITOMO HOLDS A 35 EQUITY STAKE IN ITS CABLE INTERESTS MR
NISHIMURA SAID IN 10 OF ITS 13 EXISTING VENTURES SUMITOMO IS THE LEADING
SHAREHOLDER BY THE END OF THE YEAR SUMITOMO HOPES TO BE THE LEADING
SHAREHOLDER IN 13 OR 14 OF ITS STATIONS

SO FAR MR NISHIMURA SAID THE CABLETELEVISION BUSINESS HAS BEEN A
MONEYLOSING PROPOSITION FOR SUMITOMO ALTHOUGH IT HAS BEEN GROWING IN TERMS
OF SUBSCRIBERS AND REVENUE BY 35 TO 40 A YEAR SUMITOMO EXPECTS ITS
INVESTMENTS TO BE PROFITABLE BY 1997 MR NISHIMURA SAID

SUMITOMO'S PUSH IN JAPAN'S CABLE MARKET A COLLECTION OF ROUGHLY 200
INDEPENDENTLYOWNED STATIONS IS PART OF ITS PLANS TO GAIN EXPERIENCE
MANAGING CABLE NETWORKS WORLDWIDE IT HAS ALREADY FORMED A PARTNERSHIP WITH
US CABLE GIANT TELECOMMUNICATIONS INC WHICH OWNS 35 OF A SUMITOMO
CABLENETWORK PROGRAMMING COMPANY IN JAPAN SUMITOMO IS ALSO A PARTNER WITH
TCI IN INTERMEDIA PARTNERS I AND INTERMEDIA PARTNERS III TWO US VENTURES
FORMED TO ACQUIRE AND MANAGE LOCAL CABLETELEVISION STATIONS IN THE US
9402220126 940222 DALLAS BILINGUAL SCHOOL TO PAY 7000 IN FINES

DALLAS TEXAS ATTORNEY GENERAL DAN MORALES SAID THE STATE HAS REACHED A
SETTLEMENT OF A LAWSUIT AGAINST INSTITUTO BILINGUE INTERNACIONAL AND OWNER
RAMON PACHECO THAT REQUIRES THE SCHOOL AND ITS OWNER TO PAY 7000 IN FINES
AND TO REFRAIN FROM TELLING CUSTOMERS THAT THEY WILL LEARN TO SPEAK ENGLISH
AT HIS SCHOOL

THE STATE HAD ACCUSED MR PACHECO AND HIS SCHOOL OF USING DECEPTIVE TRADE
PRACTICES THE SCHOOL WAS SUPPOSEDLY SET UP TO TEACH ENGLISH TO
SPANISHSPEAKING STUDENTS AT TWO LOCATIONS IN DALLAS SUBURBS

ACCORDING TO THE ATTORNEY GENERAL THE SCHOOL WAS TEACHING IMPROPER GRAMMAR
AND THREATENING STUDENTS WITH DEPORTATION FOR FALLING BEHIND IN TUITION
PAYMENTS THE SCHOOL HAD ALSO INCORRECTLY TOLD STUDENTS THEIR DIPLOMA FROM
THE SCHOOL WOULD BE RECOGNIZED BY COLLEGES AND UNIVERSITIES 9402220125
940222 BUSINESS BRIEF GBC BANCORP ACQUISITION OF FIRST PUBLIC IS
VALUED AT 383 MILLION

GBC BANCORP LOS ANGELES REACHED A DEFINITIVE AGREEMENT TO ACQUIRE FIRST
PUBLIC SAVINGS BANK FSB IN A TRANSACTION VALUED AT ABOUT 383 MILLION

THE PURCHASE PRICE IS SUBJECT TO CERTAIN ADJUSTMENTS GBC SAID

THE COMPANY SAID IT WILL OPERATE LOS ANGELESBASED FIRST PUBLIC AS A
SUBSIDIARY

GBC SAID THAT AFTER RECOGNIZING CERTAIN COSTS ASSOCIATED WITH THE MERGER
SHAREHOLDERS OF FIRST PUBLIC SHOULD GET BETWEEN 950 AND 10 A SHARE IF
1994 EARNINGS PROJECTIONS ARE ATTAINED

GBC SAID THE PURCHASE WHICH IS SUBJECT TO APPROVAL IS EXPECTED TO OCCUR
THIS SUMMER 9402220124 940222 US RESERVE ASSETS INCREASED IN JANUARY

WASHINGTON US RESERVE ASSETS ROSE 801 MILLION IN JANUARY TO 7424
BILLION FROM 7344 BILLION IN DECEMBER THE TREASURY REPORTED

JANUARY'S RISE FOLLOWED A 600 MILLION DECLINE IN DECEMBER

US RESERVE ASSETS CONSIST OF FOREIGN CURRENCIES GOLD SPECIAL DRAWING
RIGHTS AT THE INTERNATIONAL MONETARY FUND AND THE US RESERVE POSITION AT
THE IMF IN JANUARY 1993 THEY TOTALED 7196 BILLION

THE TREASURY SAID HOLDINGS OF FOREIGN CURRENCIES ROSE 682 MILLION FROM
DECEMBER TO 4221 BILLION WHILE THE GOLD STOCK WAS UNCHANGED AT 1105
BILLION THE RESERVE POSITION THE ABILITY TO DRAW FOREIGN CURRENCY AT
THE IMF INCREASED 88 MILLION TO 1191 BILLION AND HOLDINGS OF IMF SPECIAL
DRAWING RIGHTS WERE UP 31 MILLION TO 907 BILLION 9402220123 940222
DECKERS OUTDOOR SEES NET IN LINE WITH ESTIMATES  BY SARAH LUBMAN
 STAFF REPORTER OF THE WALL STREET JOURNAL

CARPENTERIA CALIF DECKERS OUTDOOR CORP EXPECTS TO REPORT
FOURTHQUARTER NET INCOME OF BETWEEN 11 MILLION AND 13 MILLION OR 12
CENTS TO 14 CENTS A SHARE MEETING OR SLIGHTLY EXCEEDING ANALYSTS'
ESTIMATES

SALES FOR THE QUARTER JUMPED 40 TO ABOUT 118 MILLION FROM 84 MILLION A
YEAR EARLIER DOUGLAS OTTO PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN
AN INTERVIEW

WE'VE HAD CONTINUED HIGH DEMAND FOR THE TEVA SPORTS SANDAL LINE AND
ENCOURAGING RESULTS FROM NEW LINES MR OTTO SAID ANALYSTS HAD EXPECTED
FOURTHQUARTER EARNINGS OF 10 CENTS TO 12 CENTS A SHARE

IN THE 1992 FOURTH QUARTER THE FOOTWEAR CONCERN HAD NET INCOME OF 947000
OR 13 CENTS A SHARE ON SEVEN MILLION SHARES OUTSTANDING THE COMPANY'S 1993
RESULTS WILL BE BASED ON 93 MILLION SHARES OUTSTANDING REFLECTING AN
INITIAL PUBLIC OFFERING LAST OCTOBER

FOR THE YEAR DECKERS OUTDOOR EXPECTS TO REPORT NET INCOME OF ABOUT 62
MILLION TO 63 MILLION OR 79 CENTS TO 81 CENTS A SHARE MR OTTO SAID
ANALYSTS HAD PREDICTED EARNINGS OF 76 CENTS TO 78 CENTS A SHARE IN 1992
THE COMPANY HAD NET INCOME OF 41 MILLION OR 59 CENTS A SHARE SALES FOR
1993 ARE EXPECTED TO HIT 57 MILLION UP 60 FROM 35 MILLION IN 1992

MR OTTO SAID HE IS COMFORTABLE WITH ANALYSTS' PREDICTIONS OF 110 IN
PERSHARE EARNINGS FOR 1994 AND OF 1520 ANNUAL GROWTH FOR THE NEXT FIVE
YEARS THAT'S DOABLE HE SAID OUR MOVE TOWARD PRODUCT DIVERSITY IS
TAKING HOLD

WHILE THE COMPANY'S POPULAR RUBBERANDNYLON TEVA SANDAL DOMINATES SALES MR
OTTO SAID THAT IS BEGINNING TO CHANGE TEVA SALES CONSTITUTED A LITTLE
UNDER 90 OF TOTAL SALES FOR 1993 THE EXECUTIVE SAID DOWN FROM 98 THE
PREVIOUS YEAR DECKERS OUTDOOR EXPECTS TEVA SALES TO MAKE UP ABOUT 50 OF
TOTAL SALES WITHIN FIVE YEARS WITH THE REMAINDER COMING FROM NEW APPAREL
AND SHOE LINES AND FUTURE ACQUISITIONS

WE'RE SHIFTING AWAY FROM A ONEPRODUCT COMPANY BUT WE'RE NOT HOLDING DOWN
TEVA SALES TO DO THAT MR OTTO SAID WE'RE STILL AGGRESSIVELY SELLING
TEVA BUT WE'RE LOOKING FOR SOMETHING ELSE TO SELL AGGRESSIVELY AS WELL THAT
WILL COUNTERBALANCE THE SEASONALITY OF THE SANDAL DECKERS OUTDOOR RECENTLY
SHOWED TWO NEW OUTDOOR SHOES THAT WILL HIT THE MARKET NEXT FALL

THE COMPANY WHICH HAS EXPANDED ITS SALES IN THE PAST PRIMARILY THROUGH
HIGHEND RETAILERS AND WORD OF MOUTH IS STEPPING UP ADVERTISING ITS FIRST
TELEVISION COMMERCIAL FOR TEVA SANDALS WHICH STARTED RUNNING EARLIER THIS
MONTH WILL AIR ON CABLE CHANNELS SUCH AS MTV ESPN AND DISCOVERY
9402220122 940222 ADVERTISING MAMMOTH MARKETERS AND MERCHANDISERS ARE
LEAVING NO FLINTSTONES UNTURNED  BY KEVIN GOLDMAN STAFF REPORTER
OF THE WALL STREET JOURNAL

CREATORS OF THE MOVIE THE FLINTSTONES ARE ALREADY CASHING IN ALONG
MADSTONE ER MADISON AVENUE

GIANT MARKETERS INCLUDING MCDONALD'S MATTEL LEE APPAREL TOPPS AND
THERMOS ARE PREPARING TO BOMBARD CONSUMERS WITH EVERYTHING FROM TALKING
DOLLS TO BOXER SHORTS AND SUSPENDERS TO GUMMY BEAR CANDY ALL FEATURING THE
FLINTSTONES THE TIEINS COULD BE THE MOST AGGRESSIVE AND NUMEROUS INVOLVING
A MOVIE EVER EVEN OUTDISTANCING LAST YEAR'S JUGGERNAUT JURASSIC PARK

MOVIE MERCHANDISING IS EXPLODING AS COMPANIES TRY TO REPEAT THE SUCCESS OF
BATMAN WHEN 500 MILLION OF THE CAPED CRUSADER'S PARAPHERNALIA WAS
SNATCHED UP IN A SINGLE SEASON

BUT TYING IN TO THE FLINTSTONES IS RISKY FOR ONE THING THE MOVIE USES
ACTORS INCLUDING JOHN GOODMAN FROM ROSEANNE AS FRED FLINTSTONE BABY
BOOMERS WHO GREW UP ON THE TELEVISION SERIES WHICH AIRED IN PRIME TIME FROM
1960 TO 1966 ON ABC ARE USED TO SEEING THE FLINTSTONES AND THEIR NEIGHBORS
THE RUBBLES AS CARTOON CHARACTERS IT ISN'T CLEAR THAT THE FLINTSTONES
THE MOVIE WILL LURE THEM INTO THEATERS WHEN IT OPENS NATIONWIDE ON MAY 27
THE KICKOFF OF THE SUMMER MOVIE SEASON

EVEN TODAY'S GENERATION OF CHILDREN HAS HAD THE ANIMATED CHARACTERS
REINFORCED THROUGH THE POPULAR FLINTSTONE VITAMINS FROM MILES AND KRAFT
GENERAL FOODS' FRUITY PEBBLES AND COCOA PEBBLES CEREALS

AND JUST BECAUSE CHARACTERS ARE POPULAR ON TELEVISION DOESN'T MEAN THEY WILL
WORK ON THE BIG SCREEN THE JETSONS A FUTURISTIC SERIES FROM THE CREATORS
OF THE FLINTSTONES BOMBED AS AN ANIMATED FILM IN 1990 THE CONEHEADS
BASED ON CHARACTERS FROM THE NBC SHOW SATURDAY NIGHT LIVE DIED A QUICK
DEATH AT THE BOX OFFICE LAST YEAR THE SEQUEL TO THE ADDAMS FAMILY MOVIE
ALSO DIDN'T PERFORM UP TO EXPECTATIONS IN 1993 AND CAR 54 WHERE ARE YOU
IS A QUESTION THAT COULD BE ASKED ABOUT THAT MOVIE WHICH DISAPPEARED
SHORTLY AFTER ITS RELEASE THIS YEAR

BUT THE REAL PRECEDENT FOR THE FLINTSTONES MAY BE POPEYE THE
SPINACHGULPING MUMBLING SAILOR IS PHENOMENALLY POPULAR AS A CARTOON BUT
WHEN ROBIN WILLIAMS PLAYED POPEYE AS A LIVE PERSON IN A 1980 MOVIE DIRECTED
BY ROBERT ALTMAN THE FILM FAILED MISERABLY THE POPEYE FIASCO PREDATED
MAJOR TIEINS WITH FAST FOOD CHAINS AND OTHER PRODUCTS BUT MARKETERS RECALL
HUNDREDS OF TSHIRTS AMONG OTHER ITEMS WITH THE POPEYE MOVIE LOGO THAT
PROBABLY ENDED UP IN THE TRASH HEAP MR WILLIAMS WAS SPARED ANY MARKETING
HUMILIATION BECAUSE HE DIDN'T LICENSE HIS LIKENESS

THERE'S NO SUCH ISSUE WITH MR GOODMAN OR OTHER MEMBERS OF THE CAST WHICH
INCLUDES RICK MORANIS ROSIE O'DONNELL AND ELIZABETH PERKINS THEIR
LIKENESSES WILL ADORN EVERYTHING FROM CEREAL BOXES TO TOYS AND THEREIN LIES
ANOTHER PROBLEM IF THE MOVIE DOESN'T CONNECT WITH AUDIENCES THE
MERCHANDISE WON'T SELL THROUGH AT RETAIL BECAUSE THE CHARACTERS DON'T BEAR
THE IMAGES OF THE CLASSIC FRED AND WILMA SAYS SETH SIEGEL COCHAIRMAN OF
THE BEANSTALK GROUP A NEW YORK LICENSING AND MERCHANDISING AGENCY

TRUTH TO TELL NOT ONLY DO SOME OF THE PRODUCTS SUCH AS THE TOY FIGURES
FROM MATTEL NOT LOOK LIKE FRED FLINTSTONE THEY DON'T LOOK MUCH LIKE JOHN
GOODMAN EITHER STARE FOR MORE THAN A MOMENT AND THE FIGURE BEARS AN UNCANNY
RESEMBLANCE TO LOU COSTELLO HALF OF THE COMEDY TEAM OF ABBOTT AND COSTELLO

SOME OF THESE ITEMS COULD SUFFER THE FATE OF OTHER GIANT MERCHANDISING
EFFORTS TIED TO THE STEVEN SPIELBERG FILM HOOK STARRING DUSTIN HOFFMAN
THE JETSONS AND THE LAST ACTION HERO REMEMBER 400 JETSONS JACKETS OR
THE MORE AFFORDABLE JETSONS TOOTHBRUSHES

NONETHELESS MARKETERS ARE BETTING MILLIONS THAT THE FLINTSTONES FROM
HANNABARBERA/AMBLIN ENTERTAINMENT PRODUCTION RELEASED BY UNIVERSAL
PICTURES WILL BE THE MEGAHIT OF THE SUMMER

FOR INSTANCE MCDONALD'S IS EXPECTED TO SPEND MORE THAN THE 25 MILLION TO
30 MILLION IT LAVISHED ON ITS 1992 BATMAN RETURNS MARKETING CAMPAIGN THE
FASTFOOD CHAIN DREW CRITICISM BACK THEN BECAUSE ITS PROMOTION WAS AIMED AT
KIDS EVEN THOUGH MANY PARENTS FELT THE BATMAN MOVIE WAS TOO DARK FOR
CHILDREN

COMPANIES HAVE TO BE VERY CAREFUL WHO THEY ALIGN THEMSELVES WITH CAUTIONS
JOHN LISTER CHIEF EXECUTIVE OFFICER OF LISTER BUTLER A NEW YORK CONSULTING
FIRM SPECIALIZING IN CORPORATE BRANDS IT SOUNDS AS IF A LOT OF THESE
COMPANIES JUST WANT INCREASED INSTANT EXPOSURE AND AREN'T DOING MUCH TO
PROTECT THE LONGTERM IMAGE OF THEIR BRANDS

MARKETING EXPERTS NOTE THAT TWO PRODUCTS WITH LONGTERM TIES TO THE CARTOON
FLINTSTONES COULD END UP CONFUSING THEIR CUSTOMERS BY PLACING MR GOODMAN ON
PACKAGES INSTEAD OF THE ANIMATED FRED MILES FOR INSTANCE WHICH INTRODUCED
FLINTSTONES CHILDREN'S VITAMINS IN 1969 IS PRODUCING SPECIAL PACKAGES WITH
MR GOODMAN INSTEAD OF A DRAWING OF MR FLINTSTONE MR GOODMAN IS ALSO
BEING USED IN LIFESIZE STANDUP POSTERS ADVERTISING FLINTSTONES VITAMINS IN
DRUGSTORES AND MILES IS OFFERING CUSTOMERS A YABBADABBADOO KIT FEATURING
GAME BOOKS AND MOVIE STICKERS

POST IS ALSO BUMPING THE CARTOON FIGURES ON ITS CEREAL BOXES IN FAVOR OF THE
ACTORS POST WHICH INTRODUCED PEBBLES CEREALS IN MARCH 1982 DIDN'T RETURN
CALLS SEEKING COMMENT

THE COMPANIES SELLING THE MOVIE TO ADVERTISERS PLAY DOWN THE RISK OF
OVEREXPOSURE LOIS SLOANE EXECUTIVE VICE PRESIDENT OF WORLDWIDE LICENSING
AND MERCHANDISING FOR TURNER HOME ENTERTAINMENT CONTENDS THERE ISN'T A
DANGER OF GLUTTING THE MARKET WITH FLINTSTONES PROPERTY WE THINK IT IS
EXCITING TO INTRODUCE SOMETHING NEW AND EXCITING TO A 34YEAROLD PROPERTY
TURNER BROADCASTING SYSTEM OWNS HANNABARBERA PRODUCTIONS AND TURNER HOME
ENTERTAINMENT IS THE DISTRIBUTION ARM OF TURNER BROADCASTING

LINDA BERKELEY SENIOR VICE PRESIDENT AND HEAD OF MCA/UNIVERSAL
MERCHANDISING BELIEVES MCDONALD'S ALONE WILL GIVE THE MOVIE A HUGE BOOST
MCDONALD'S IS PUTTING TOGETHER ITS FIRST EVER GLOBAL PROMOTION IN SUPPORT
OF THIS MOVIE SHE SAYS SO WE'RE ON TRACK TO MAKE THIS A SUCCESS A
SPOKESWOMAN FOR MCDONALD'S DECLINES COMMENT ON THE SPECIFICS OF THE
PROMOTION WHICH IS EXPECTED TO BE A VARIATION OF ITS HAPPY MEAL PACKAGE

MEANWHILE FRED WILMA BARNEY AND BETTY WILL HAVE TO FACE SOME COMPETITION
OF THEIR OWN FOR THE FAMILY AUDIENCE THIS SUMMER WALT DISNEY WILL RELEASE A
NEW ANIMATED MOVIE THE LION KING WITH ORIGINAL MUSIC FROM ELTON JOHN
AND DISNEY HAS ALREADY SIGNED BURGER KING NESTLE AND EASTMAN KODAK AMONG
OTHERS AS PROMOTIONAL PARTNERS

IN SHORT HERE COMES SUMMER AND AS MR SIEGEL PUTS IT ANOTHER LICENSING
FREEFORALL

SAATCHI & SAATCHI CO CONTRADICTED REPORTS THAT ROBERT KENNEDY WHO LEFT HIS
POST AS NORTH AMERICAN CHAIRMAN AND CHIEF EXECUTIVE OF SAATCHI & SAATCHI
ADVERTISING LAST MONTH RECEIVED 6 MILLION AS PART OF A PACKAGE TO SEVER A
MULTIYEAR CONTRACT

THE CHARGE TO OUR PROFIT AND LOSS ACCOUNT WILL BE LOWER THAN THE FIGURE
QUOTED IN PUBLISHED REPORTS IN EUROPE A SPOKESMAN FOR THE BRITISH HOLDING
COMPANY SAID DECLINING TO BE MORE SPECIFIC THE COMPANY IS EXPECTED TO
REPORT ITS YEAREND FINANCIAL RESULTS NEXT MONTH WHEN MR KENNEDY LEFT
SAATCHI & SAATCHI ADVERTISING IN JANUARY THE COMPANY HAD ORIGINALLY SAID HE
RETIRED

MR KENNEDY A LONGTIME SAATCHI VETERAN WAS REMOVED FROM HIS NORTH AMERICAN
POST LAST MONTH AFTER JUST A YEAR AT IT PUBLISHED REPORTS SAID HE HAD
EARNED 800000 A YEAR IN THAT JOB UNDER A MULTIYEAR CONTRACT

THE SAATCHI SPOKESMAN DECLINED TO DISCUSS DETAILS OF MR KENNEDY'S CONTRACT
BUT ADDED A SIMILAR CONTRACT WOULDN'T NOW BE PUT IN PLACE SAATCHI CHIEF
EXECUTIVE CHARLES SCOTT MUST APPROVE CONTRACTS OF MORE THAN A YEAR HE SAID
NO CONTRACT OVER THREE YEARS WOULD BE PUT IN PLACE AT ALL

CME KHBB WHICH SAATCHI & SAATCHI LAUNCHED AS ITS THIRD GLOBAL AGENCY
NETWORK WITH AN EMINENTLY OBSCURE NAME HAS REVERTED BACK TO A BETTERKNOWN
EASIER TO PRONOUNCE NAME CAMPBELL MITHUN ESTY IN NORTH AMERICA

IN SEPTEMBER 1992 SAATCHI MERGED TWO OF ITS UNITS THE STAID MIDWESTERN
AGENCY CAMPBELL MITHUN ESTY AND THE LONDON SHOP KHBB THE NAME OF THE
RESULTING AGENCY CME KHBB RAISED EYEBROWS ON MADISON AVENUE

NOW CME KHBB IS DROPPING ITS ARTLESS MONIKER IN THE US AND CANADA
REVERTING TO THE NAMES OF THREE OF ITS FOUNDERS IN EUROPE WHERE THE KHBB
NAME IS MORE RECOGNIZED THE CME KHBB NAME WILL REMAIN IN USE BUT AS THE
AGENCY EXPANDS INTO NEW MARKETS THE CAMPBELL MITHUN NAME WILL BE ON THE
DOOR

CAMPBELL MITHUN'S PRESIDENT HOWARD LISZT SAID WE NEEDED A NAME THAT WAS
SIMPLER AND BETTER CLARIFIED OUR BRAND IMAGE THE INITIALS WERE
COUNTERPRODUCTIVE AND WE'RE ALREADY KNOWN AS CAMPBELL MITHUN ANYWAY
9402220121 940222 BUSINESS BRIEF ASSOCIATED NATURAL GAS CORP A 56
MILLION STOCK SWAP SET FOR GRAND VALLEY GAS CO

ASSOCIATED NATURAL GAS CORP SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE GRAND
VALLEY GAS CO IN A STOCK TRANSACTION VALUED AT ABOUT 56 MILLION

ASSOCIATED SAID THE COMBINED NATURALGAS MARKETING COMPANIES WILL MARKET
ABOUT 23 BILLION CUBIC FEET OF NATURAL GAS DAILY IN NORTH AMERICA
ASSOCIATED IS BASED IN DENVER GRAND VALLEY IS IN SALT LAKE CITY

UNDER TERMS OF THE AGREEMENT ASSOCIATED WILL EXCHANGE 025 SHARE FOR EACH
SHARE OF GRAND VALLEY ASSOCIATED SAID IT WILL ISSUE ABOUT 16 MILLION
SHARES

THE COMPANIES SAID THEY HOPE TO COMPLETE THE DEAL BY JULY 1 AN ASSOCIATED
SPOKESMAN SAID THAT BASED ON FRIDAY'S CLOSING STOCK PRICES THE TRANSACTION
HAS A VALUE OF ABOUT 56 MILLION 9402220120 940222 BUSINESS BRIEF 
ATLANTIC GULF COMMUNITIES CORP FLORIDA PROPERTY BOUGHT FOR
SINGLEFAMILY COMPLEX

ATLANTIC GULF COMMUNITIES CORP MIAMI ACQUIRED 245 ACRES OF RESIDENTIAL
LAND IN KISSIMMEE FLA FOR THE DEVELOPMENT OF A 940UNIT SINGLEFAMILY
RESIDENTIAL COMMUNITY TERMS WEREN'T DISCLOSED

THE COMPANY SAID MOST APPROVALS HAVE BEEN OBTAINED AND IT EXPECTS DELIVERY
OF FINISHED LOTS TO LOCAL BUILDERS IN THE SECOND QUARTER

THE COMPANY SAID IT ALREADY SIGNED AN AGREEMENT WITH AMERICAN HERITAGE HOMES
FOR MORE THAN 250 LOTS WITH HOUSE CONSTRUCTION EXPECTED TO START IN JUNE
THOSE TERMS ALSO WEREN'T DISCLOSED

AMERICAN HERITAGE HOMES LOCATED KISSIMMEE IS A DEVELOPER OF SINGLEFAMILY
RESIDENTIAL HOMES 9402220118 940222 INTERNATIONAL EURO DISNEY CALLS ON
MARY POPPINS TO TIDY UP MESS AT FRANCH RESORT  BY PETER GUMBEL 
STAFF REPORTER OF THE WALL STREET JOURNAL

MARNELAVALLEE FRANCE HOW DO YOU SET ABOUT RIGHTING THE PROBLEMS AT
EURO DISNEY THE TROUBLED RESORT OUTSIDE PARIS THAT IS LOSING 1 MILLION A
DAY

START BY TEACHING THE RECEPTIONISTS A SMATTERING OF GERMAN OR SPANISH
HALVING THE NUMBER OF DIFFERENT ITEMS AVAILABLE IN THE RESTAURANTS AND
PERSUADING STAFF WHO SELL ADMISSION TICKETS IN THE MORNING TO SELL MICKEY
MOUSE TSHIRTS IN THE AFTERNOON

THAT AT LEAST IS THE NEW OPERATIONAL STRATEGY BEING PUT IN PLACE BY EURO
DISNEY SCA'S CHIEF EXECUTIVE PHILIPPE BOURGUIGNON HE IS COUNTING ON A HOST
OF PIECEMEAL MEASURES TO REVITALIZE THE PARK BY CATERING BETTER TO THE NEEDS
OF ITS VISITORS REMOTIVATING STAFF AND ABOVE ALL CUTTING COSTS AND
INCREASING REVENUE

CHALLENGE 94 AS THIS PROGRAM IS CALLED IS PART OF A BROADER BUSINESS
PLAN TO REFOCUS EURO DISNEY AS A LESS EXPENSIVE AND MORE EFFICIENT RESORT
TO HELP IMPLEMENT IT MR BOURGUIGNON HAS BROUGHT IN A NEW PERSONNEL
DIRECTOR MICHEL PERCHET WHO WAS HIRED AWAY FROM ANOTHER AILING FRENCH
LEISURE GROUP CLUB MEDITERRANEE

TO WIN OVER THE 9000 FULLTIME PERMANENT EMPLOYEES KNOWN IN DISNEY
PARLANCE AS CAST MEMBERS THE COMPANY IS STAGING AN INHOUSE EXHIBITION
THAT USES MARY POPPINS VIDEO CLIPS AND SERIOUS FLOW CHARTS TO ILLUSTRATE
ITS PLANS THROUGHOUT THERE ARE LITTLE QUIZZES TO MAKE SURE STAFFERS READ
AND UNDERSTAND THE DISPLAYS ALONGSIDE EXHORTATIONAL SIGNS THAT AT TIMES
READ LIKE BILLBOARDS FROM THE FORMER SOVIET UNION IN THE NEAR FUTURE THERE
WILL BE A UNIQUE WONDERFUL LAND ONE PROCLAIMS ON A DISPLAY ABOUT HOW TO
WELCOME GUESTS MORE WARMLY

EURO DISNEY WON'T SAY WHAT EFFECT THE CAMPAIGN WILL HAVE ON EARNINGS BUT
INDEPENDENT ANALYSTS RECKON THE REVAMPED BUSINESS PLAN INCLUDING A STAFF
REDUCTION OF 950 PEOPLE ANNOUNCED LAST FALL IS DESIGNED TO CUT COSTS BY
AS MUCH AS 300 MILLION FRANCS 51 MILLION

THAT IS JUST A DROP IN THE OCEAN FOR A COMPANY WITH DEBTS OF 21 BILLION
FRANCS AND A LOSS OF 553 MILLION FRANCS IN THE MOST RECENT QUARTER THE
RESORT'S FUTURE OFFICIALS CONCEDE DEPENDS LARGELY ON THE OUTCOME OF
NEGOTIATIONS TO REDUCE THE DEBT BURDEN THAT ARE NOW UNDER WAY BETWEEN WALT
DISNEY CO WHICH OWNS 49 OF EURO DISNEY AND THE RESORT'S 60 CREDITOR
BANKS WALT DISNEY HAS SAID IT WILL ONLY FUND EURO DISNEY'S LOSSES UNTIL THE
END OF MARCH

BUT MR BOURGUIGNON'S OPERATIONAL CHANGES BY SHOWING CONFIDENCE IN THE
FUTURE DO COUNTER THE DOOMSDAY SCENARIOS ABOUT EURO DISNEY'S FUTURE THAT
ARE CURRENTLY FASHIONABLE IN PARTS OF THE FRENCH AND EUROPEAN MEDIA THEY
FOLLOW ON THE HEELS OF OTHER EFFORTS BY EURO DISNEY MANAGEMENT TAKEN IN THE
PAST FEW MONTHS TO CUT PRICES AT THE PARK AND WOO BACK ALIENATED EUROPEAN
TOUR OPERATORS

SUCH MEASURES HAVE NOW APPARENTLY BEEN ENDORSED BY A MAJOR INDEPENDENT
REPORT ON THE PARK'S FINANCIAL SITUATION AND PROSPECTS THE 300PAGE REPORT
BY AUDITORS KPMG PEAT MARWICK WAS SENT OUT TO CREDITOR BANKS MONDAY SEVERAL
WEEKS LATER THAN EXPECTED AFTER BEING HELD UP BY DISPUTES WITH EURO DISNEY'S
OWN AUDITORS PRICE WATERHOUSE

ITS DETAILED ANALYSIS REMAINS CONFIDENTIAL WITH THE PRECISE SOLUTIONS LEFT
UP TO THE NEGOTIATING PARTIES BANKERS INVOLVED IN THE NEGOTIATIONS HAVE
SAID THEY AIM TO SLASH EURO DISNEY'S DEBT BURDEN BY AT LEAST 50 REDUCING
ITS ANNUAL INTEREST PAYMENTS TO 800 MILLION FRANCS OR LESS FROM LAST YEAR'S
WHOPPING 17 BILLION FRANCS EVEN WITH SUCH A DEBT REDUCTION AND SAVINGS
FROM THE OPERATIONAL CHANGES BEING IMPLEMENTED HOWEVER THE PARK'S FINANCES
ARE LIKELY TO REMAIN PRECARIOUS AS IT IS THE PARK JUST BREAKS EVEN AT THE
MOMENT BEFORE INTEREST CHARGES AND VARIOUS ROYALTY AND OTHER FEES IT IS
CONTRACTUALLY OBLIGED TO PAY WALT DISNEY

ESSENTIALLY IT'S GOING TO BE STRUGGLING TO PAY ANYONE ANY DECENT RETURN AT
ALL CAUTIONS CHARLES ALLEN AN ANALYST AT NATWEST SELLIER IN LONDON

STILL EVERY PENNY COUNTS EURO DISNEY RECKONS IT INVITED CAST MEMBERS LAST
FALL TO SUGGEST THEIR OWN IMPROVEMENTS MANY DID SO PROPOSING MEASURES THAT
RANGED FROM CUTTING BACK ON INTERNAL MEMOS TO PRUNING TREES THAT BLOCK THE
VIEW FROM SOME HOTEL ROOMS

THE MODIFICATIONS NOW BEING PROPOSED IN THE CAMPAIGN COVER ALMOST EVERY
ACTIVITY TO ATTRACT BUSINESS MANAGEMENT IS TRYING TO IMPROVE THE
TECHNOLOGY USED IN DIRECT MARKETING AND SIMPLIFY THE DIFFERENT PACKAGE
HOLIDAYS IT OFFERS IT HAS ALSO JUST MERGED TWO DIFFERENT OPERATIONS
RESPONSIBLE FOR SELLING AND SERVICING CONVENTIONS AT THE PARK

ONCE IN THE PARK EFFICIENCY AND ECONOMY ARE THE NEW WATCHWORDS IN THE
STORES THE NUMBER OF DIFFERENT ITEMS STOCKED IS BEING CUT TO 17000 FROM
30000 AND A BIGGER PROPORTION OF THEM WILL BE PURE US DISNEY PRODUCTS
THE COMPANY WAS SURPRISED TO FIND THAT VISITORS PREFERRED GARISH MICKEY AND
MINNIE SOUVENIRS TO THE MORE SUBTLE ITEMS THAT IT HAD THOUGHT WOULD BETTER
SUIT EUROPEAN TASTE THE SHIP IN A BOTTLE FOR EXAMPLE TURNED OUT TO BE A
NONSTARTER

IN THE PARK'S FIVE HOTELS THERE ARE PLANS TO ELIMINATE VOUCHERS AND
INTRODUCE MAGNETIC CARDS THAT WILL RECORD ALL THE MEALS EACH VISITOR HAS
PREPAID THEREBY CUTTING HASSLES AND RED TAPE THE NUMBER OF DIFFERENT FOOD
ITEMS OFFERED IS BEING REDUCED TO 2000 FROM 5400 AND ALL SUPPLIES WILL BE
HANDLED CENTRALLY UNDER THE CURRENT SYSTEM THE HOTELS AND THE PARK HAVE
SEPARATE SUPPLIERS

THAT WILL GIVE EURO DISNEY BETTER NEGOTIATING CLOUT WITH ITS SUPPLIERS BUT
IT ALSO INTERTWINES THE HOTELS AND THE PARK IN A WAY THE COMPANY ORIGINALLY
HAD TRIED TO AVOID IT HAD INITIALLY HOPED TO SELL SOME OF THE HOTELS TO
RAISE MONEY BUT THOSE PLANS HAVE BEEN THWARTED BY FRANCE'S REALESTATE
SLUMP

BY INCREASING JOB FLEXIBILITY AND IMPROVING MOTIVATION AND TRAINING
MOREOVER THE COMPANY HOPES TO BOOST SALES THROUGHOUT THE PARK AS ONE SIGN
IN THE EXHIBIT NOTED IN A MIXTURE OF ENGLISH AND FRENCH I'M A SALESMAN
REGARDEZ C'EST FACILE LOOK IT'S EASY

LABOR UNIONS HAVE GIVEN GUARDED SUPPORT TO THE CAMPAIGN AND STAFF REACTION
JUDGING BY THE WRITTEN COMMENTS OF THE 4000 WHO SAW THE 10DAY EXHIBIT WAS
GENERALLY POSITIVE BUT ALSO REFLECTS VERY REAL FEARS ABOUT THE FUTURE AS
ONE ITALIAN CAST MEMBER WROTE IN THE COMMENTS BOOK HERE'S TO A LONG LIFE
FOR EURO DISNEY 9402220117 940222 BUSINESS BRIEF WELDOTRON CORP 
CHIEF SELLS 250000 SHARES TO MENTMORE'S LYFORD CORP

WELDOTRON CORP PISCATAWAY NJ SAID ITS CHAIRMAN AND CHIEF EXECUTIVE
OFFICER MARTIN SIEGEL SOLD 250000 SHARES OF HIS WELDOTRON COMMON STOCK TO
LYFORD CORP A SUBSIDIARY OF INVESTMENT COMPANY MENTMORE HOLDINGS CORP
WASHINGTON AT 4 A SHARE

THE SALE GIVES LYFORD WHICH PREVIOUSLY PURCHASED 200000 SHARES DIRECTLY
FROM WELDOTRON A 1956 SHARE OF THE COMPANY'S SHARES OUTSTANDING MR
SIEGEL FOUNDER OF THE PACKAGING AND ELECTRONICSYSTEMS MANUFACTURER WILL
REMAIN IN HIS POSITION AND WILL HOLD A 735 STOCK POSITION THE COMPANY
SAID

WELDOTRON STOCK CLOSED AT 21875 UP 3125 CENTS IN COMPOSITE AMERICAN
STOCK EXCHANGE TRADING FRIDAY 9402220116 940222 MARKETING & MEDIA 
BUYERS FAIL TO CAST EYES ON SPY MAGAZINE TO FOLD

NEW YORK SPY THE HIP SATIRICAL MAGAZINE THAT HAS BRASHLY TAKEN ON
POLITICIANS CELEBRITIES AND ENTREPRENEURS HAS CEASED PUBLICATION AFTER
FAILING TO FIND A BUYER

THE MAGAZINE WHICH PUBLISHED FOR SEVEN AND ONEHALF YEARS HAD A
CIRCULATION OF ABOUT 200000 MAJORITY OWNER JEAN PIGOZZI HAD TRIED TO FIND
A BUYER FOR MONTHS

CIRCULATION DIRECTOR ELAINE ALIMONTI SAID THE MAGAZINE'S CIRCULATION AND
ADVERTISING REVENUE HAD BEEN GROWING ABOUT 20 A YEAR EVERYTHING WAS GOING
WELL SHE SAID

MAGAZINE STAFFERS ONCE CALLED 20 FIRSTYEAR CONGRESSMEN TO ASK HOW TO CURB
ETHNIC CLEANSING IN FREDONIA THE FICTITIOUS COUNTRY IN THE MARX BROTHERS
FILM DUCK SOUP ANSWERS RANGED FROM IT'S A DIFFERENT SITUATION THAN THE
MIDDLE EAST TO TAKE ACTION 9402220115 940222 MAMMOGRAMS SHOULD SHE
OR SHOULDN'T SHE  BY ELYSE TANOUYE STAFF REPORTER OF THE WALL
STREET JOURNAL

CONFLICTING MESSAGES FROM MEDICAL EXPERTS HAVE LEFT AMERICAN WOMEN UNCERTAIN
ABOUT WHEN AND WHETHER TO GET MAMMOGRAMS AND A DEFINITIVE ANSWER TO THE
QUESTION APPEARS TO BE MANY YEARS AWAY

THE NATIONAL CANCER INSTITUTE RECENTLY SAID IT FOUND NO CONCLUSIVE EVIDENCE
THAT REGULAR MAMMOGRAMS REDUCE THE DEATH RATE FROM BREAST CANCER FOR WOMEN
UNDER 50 IT WITHDREW ITS RECOMMENDATION THAT WOMEN BEGIN ROUTINE
MAMMOGRAPHY IN THEIR 40S SAYING WOMEN SHOULD CONSULT THEIR HEALTH
PROFESSIONALS AND DECIDE FOR THEMSELVES WHETHER TO TAKE THE TEST

OTHER GROUPS INCLUDING THE AMERICAN CANCER SOCIETY THE AMERICAN MEDICAL
WOMEN'S ASSOCIATION AND THE AMERICAN MEDICAL ASSOCIATION HAVE CHALLENGED
THE NCI'S NEW POSITION THEY ARE STILL RECOMMENDING THAT WOMEN IN THEIR 40S
HAVE ROUTINE MAMMOGRAMS THE AMA EVEN RECOMMENDS WOMEN START WITH A BASELINE
MAMMOGRAM AT 35

DEBORAH MASTERS 42 YEARS OLD SAYS SHE HAD BEEN GETTING REGULAR MAMMOGRAMS
FOR FIVE YEARS THE NEWS OF THE NCI CHANGE CONFUSED AND WORRIED HER IN PART
BECAUSE SHE THOUGHT IT MEANT THAT THE RADIATION WAS DANGEROUS IT WAS
HORRIFYING SHE SAYS

MS MASTERS IS NOT ALONE SINCE THE NCI'S GUIDELINE CHANGE IN EARLY
DECEMBER A MICHIGAN BREASTCANCER SCREENING PROGRAM HAS RECEIVED DOZENS OF
PHONE CALLS FROM WOMEN ASKING WHY THEY GOT REMINDERS TO COME IN FOR THEIR
MAMMOGRAMS WHICH THEY THOUGHT THEY DIDN'T NEED ANYMORE SAYS CAROL
GARLINGHOUSE A SENIOR CONSULTANT ON THE PROJECT EVEN WOMEN IN THEIR 50S
WHOSE BENEFIT FROM MAMMOGRAPHY ISN'T DISPUTED HAVE CALLED SHE SAYS

THE NATIONAL ALLIANCE OF BREAST CANCER ORGANIZATIONS HAS RECEIVED HUNDREDS
OF INQUIRIES FROM WOMEN ASKING WHY THE EXPERTS DISAGREE WHETHER THEY SHOULD
TAKE MAMMOGRAMS AND WHETHER THE EXAMINATION IS DANGEROUS SAYS AMY LANGER
THE GROUP'S EXECUTIVE DIRECTOR

THE NCI'S CHANGE IN RECOMMENDATION WAS THE RESULT OF A REVIEW OF CLINICAL
TRIALS ON THE VALUE OF MAMMOGRAPHY WHILE NONE OF THE STUDIES WAS PERFECT
THE DATA SHOWED AN UNDENIABLE BENEFIT FOR WOMEN BETWEEN 50 AND 69 YEARS OLD
BUT LESS CLEAR RESULTS IN THE 40TO49 AGE GROUP FOR THE YOUNGER WOMEN
THERE WAS NO STATISTICALLY SIGNIFICANT IMPROVEMENT IN SURVIVAL RATES FOR
THOSE WHO HAD REGULAR MAMMOGRAMS

MAMMOGRAMS OF YOUNGER WOMEN ARE MORE DIFFICULT TO INTERPRET BECAUSE THEIR
BREAST TISSUE TENDS TO BE DENSER SAYS EDWARD SONDIK DEPUTY DIRECTOR OF THE
NCI'S DIVISION OF CANCER PREVENTION AND CONTROL MAMMOGRAPHY MISSES ABOUT
40 OF CANCERS IN YOUNGER WOMEN HE POINTS OUT WOMEN WHO HAVE NEGATIVE
RESULTS FROM MAMMOGRAMS MAY ALSO BE LESS VIGILANT ABOUT DOING REGULAR BREAST
SELFEXAMINATIONS WHERE MANY BREAST CANCERS ARE STILL FOUND MR SONDIK
SAID

MAMMOGRAPHY ALSO INEVITABLY PRODUCES A SMALL NUMBER OF FALSE POSITIVES
WHICH CAN LEAD TO COSTLY AND UNNECESSARY PROCEDURES FOR OLDER WOMEN THAT
RISK IS WORTH IT BUT FOR YOUNGER WOMEN IT MAY NOT BE HE ADDS

OUR POSITION IS THAT WE CANNOT TRY TO INSULATE WOMEN FROM THE FACTS AND
THE FACTS ARE THERE IS DISAGREEMENT AMONG PROFESSIONALS SAYS BARRY KRAMER
NCI'S ASSOCIATE DIRECTOR OF THE EARLY DETECTION AND COMMUNITYONCOLOGY
PROGRAM

GERALD J JOSEPH JR A NEW ORLEANS PHYSICIAN RECALLS FINDING A TUMOR IN
THE ROUTINE MAMMOGRAM OF A 35YEAROLD PATIENT TODAY SEVERAL YEARS LATER
THE PATIENT HAS HAD TWO CHILDREN AND IS DOING FINE WITHOUT A MAMMOGRAM
I'M NOT SURE THAT WOULD HAVE HAPPENED DR JOSEPH SAYS

CRITICS OF THE NCI CHANGE ARGUE THAT WHILE A BENEFIT OF SCREENING YOUNGER
WOMEN WASN'T PROVED IT ALSO WASN'T DISPROVED THE STUDIES REVIEWED BY NCI
DIDN'T INCLUDE ENOUGH WOMEN BETWEEN THE AGES OF 40 AND 49 TO DETERMINE
WHETHER THERE IS A BENEFIT TO THAT AGE GROUP SAYS DR KOPANS AN ASSOCIATE
PROFESSOR AT HARVARD MEDICAL SCHOOL EACH YEAR NEARLY AS MANY WOMEN IN
THEIR 40S ARE DIAGNOSED WITH CANCER AS WOMEN IN THEIR 50S HE SAYS NOTHING
CHANGES SUDDENLY AT 50 HE ADDS

ERWIN BETTINGHAUS A MEMBER OF THE NCI'S NATIONAL CANCER ADVISORY BOARD WHO
ALONG WITH THE MAJORITY OF OTHER PANEL MEMBERS DISAGREED WITH THE CHANGE
SAYS I DON'T BELIEVE THE SCIENCE IS FAR ENOUGH ALONG TO MAKE A DEFINITIVE
STATEMENT ONE WAY OR ANOTHER

DR KOPANS AND OTHERS SUGGEST THAT THE NCI A BRANCH OF THE GOVERNMENTRUN
NATIONAL INSTITUTES OF HEALTH WAS INFLUENCED BY POLITICAL AND HEALTHCARE
COSTCONTAINMENT PRESSURES HE POINTS OUT THAT THE CLINTON ADMINISTRATION'S
HEALTHPLAN RECOMMENDATIONS MIRROR THE NCI'S GUIDELINES CLEARLY IT WAS A
POLITICAL DECISION HE SAYS

NCI OFFICIALS DENY THE ORGANIZATION WAS UNDER ANY POLITICAL PRESSURE ADDING
THAT DISCUSSIONS ABOUT CHANGING THE GUIDELINES WERE UNDER WAY BEFORE THE
PRESIDENTIAL ELECTION

THE NCI DOES HAVE SUPPORTERS THE AMERICAN COLLEGE OF PHYSICIANS WHOSE
MEMBERS ARE MAINLY INTERNISTS AGREES THAT SCREENING SHOULD BEGIN AT AGE 50
STEPHEN WYATT DIRECTOR OF THE CENTERS FOR DISEASE CONTROL AND PREVENTION'S
CANCER PREVENTION AND CONTROL PROGRAM SAYS WE'VE BEEN VERY SUPPORTIVE OF
OUR COLLEAGUES AT THE NCI

AMONG WOMEN WHO WANT TO CONTINUE HAVING MAMMOGRAMS CONCERNS HAVE ARISEN
THAT INSURANCE COMPANIES OR GOVERNMENT PROGRAMS WILL STOP PAYING FOR THE
EXAMINATION BECAUSE OF THE NCI STAND DR CARL D'ORSI PROFESSOR OF
RADIOLOGY AT THE UNIVERSITY OF MASSACHUSETTS IN WORCESTER MASS SAYS ABOUT
A HALFDOZEN WOMEN IN DECEMBER ASKED ABOUT HAVING THEIR MAMMOGRAMS DONE
BEFORE THE END OF THE YEAR BECAUSE THEY WERE WORRIED THEIR INSURANCE MIGHT
DROP COVERAGE THE AMERICAN CANCER SOCIETY HAS ALSO RECEIVED CALLS FROM
WOMEN CONCERNED ABOUT LOSING INSURANCE REIMBURSEMENT SAYS HARMON EYRE OF
THE ORGANIZATION'S MEDICAL AFFAIRS AND RESEARCH UNIT

THE CDCP IS REEVALUATING ITS NATIONAL BREAST AND CERVICAL CANCER EARLY
DETECTION PROGRAM TO DECIDE WHETHER ITS FUNDING OF STATE SCREENING PROGRAMS
SHOULD BE LIMITED OR MORE HEAVILY TARGETED TO WOMEN OVER 50 MR WYATT
ADDS

AMONG PRIVATE INSURERS KYLANNE GREEN DIRECTOR OF MANAGED CARE AT THE
HEALTH INSURANCE ASSOCIATION OF AMERICA SAYS SHE ISN'T AWARE OF ANY CHANGES
IN COVERAGE PROMPTED BY THE NCI CHANGE BUT SHE ADDS THE CASE PRESAGES
SIMILAR CONFLICTS BOUND TO COME UP IN REVISING THE HEALTHCARE SYSTEM
COSTEFFECTIVENESS ANALYSES MAY DETERMINE THAT MAMMOGRAPHY DOESN'T PAY OFF
IN WOMEN UNDER 50 SHE SAYS YET IT'S VERY DIFFICULT TO LOOK AT THAT
OBJECTIVELY WHEN YOU REALIZE HOW MANY WOMEN DIE OF BREAST CANCER
9402220114 940222 CONTINENTAL REORGANIZATION'S ENGINEERS MAKE OFFER FOR
AMERICA WEST AIRLINES  BY BRIDGET O'BRIAN STAFF REPORTER OF THE
WALL STREET JOURNAL

A GROUP LED BY SOME OF THE INVESTORS WHO ENGINEERED CONTINENTAL AIRLINES'
EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS LAST YEAR HAS MADE A BID
FOR CONTROL OF AMERICA WEST AIRLINES

THE INVESTORS ARE DAVID BONDERMAN AND JAMES COULTER OF FORT WORTH TEXAS
BOTH OF WHOM ARE PRINCIPALS IN AIR PARTNERS LP THE GROUP THAT OWNS 28 OF
CONTINENTAL AIRLINES MR BONDERMAN IS ALSO CONTINENTAL'S NONEXECUTIVE
CHAIRMAN CONTINENTAL CONFIRMED THAT IT'S A MINORITY PARTNER IN THE AMERICA
WEST OFFER AS IS MESA AIRLINES A SMALL BUT HIGHLY SUCCESSFUL FARMINGTON
NEW MEXICOBASED CARRIER THAT OPERATES REGIONAL COMMUTER OPERATIONS FOR
SEVERAL MAJOR AIRLINES

TERMS OF THE PROPOSAL WHICH COMES FROM A NEWLY ORGANIZED GROUP CALLED
AMWEST PARTNERS LP WEREN'T DISCLOSED SPOKESMEN FOR MESSRS BONDERMAN AND
COULTER AND CONTINENTAL WERE QUICK TO SAY THERE ISN'T ANY PLAN TO COMBINE OR
MERGE THE OPERATIONS OF ANY OF THE CARRIERS INVOLVED IF THERE ARE IN TERMS
OF THE USUAL RESERVATIONS CODESHARING OR FREQUENT FLIER MILES THOSE WOULD
BE EXPLORED AND WHERE POSSIBLE IMPLEMENTED SAID A SPOKESMAN FOR AIR
PARTNERS BUT THE AIRLINES WOULD MAINTAIN THEIR INDEPENDENCE

AMERICA WEST WHICH HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION FOR
NEARLY THREE YEARS HAS UNTIL TOMORROW TO CHOOSE A LEAD PROPOSAL ANY BID
MUST THEN BE APPROVED BY THE BANKRUPTCY COURT OVERSEEING THE CARRIER WHICH
IS BASED IN PHOENIX ARIZ THE ONLY OTHER BID FOR AMERICA WEST MADE PUBLIC
THUS FAR HAS COME FROM NEW YORK MONEY MANAGER MICHAEL STEINHARDT WHO
PROPOSED BUYING 80 OF AMERICA WEST'S EQUITY FOR 250 MILLION AN OVERTURE
BY THE PRITZKER FAMILY OF CHICAGO WAS WITHDRAWN LAST YEAR

AMERICA WEST'S SUDDEN POPULARITY REFLECTS THE AIRLINE INDUSTRY'S VIEW THAT
LOWCOST SHORTHAUL OPERATIONS ARE THE WAVE OF THE FUTURE WITH ENVIABLY
LOW COSTS AND A 1993 PROFIT OF 37 MILLION AMERICA WEST'S PERFORMANCE BEAT
ALL THE MAJOR CARRIERS EXCEPT FOR SOUTHWEST AIRLINES

ANY BID FOR AMERICA WEST HOWEVER MUST GAIN THE SUPPORT OF SOME OF ITS
CREDITOR GROUPS A PERSON FAMILIAR WITH ONE OF THE GROUPS SAID THAT IN TERMS
OF PURE ECONOMICS THE AMWEST PARTNERS BID ISN'T AS ATTRACTIVE AS MR
STEINHARDT'S IT'S UNDERSTOOD THOUGH THAT THE AMWEST PARTNERS BID MAY BE
REVISED SOMEWHAT BEFORE THE COMPANY SELECTS ITS LEAD PROPOSAL

THE AIRLINE HAS SAID IT'S SEEKING AN INVESTMENT OF 200 MILLION AS PART OF
ANY PLAN TO EMERGE FROM BANKRUPTCY PROCEEDINGS 9402220113 940222 BUSINESS
BRIEF DERLAN INDUSTRIES LTD COMPANY TO BUY NET ASSETS OF ENERGY
CONTAINER CORP

DERLAN INDUSTRIES LTD SAID IT AGREED TO PURCHASE THE NET ASSETS OF ENERGY
CONTAINER CORP OF SANTA ANNA CALIF

TERMS WEREN'T DISCLOSED

DERLAN BASED IN TORONTO SAID ENERGY CONTAINER DESIGNS DEVELOPS AND MAKES
METAL AND COMPOSITE AIRCRAFTFUEL TANKS AND A PROPRIETARY LINE OF PATENTED
CRYOGENIC AND PETROCHEMICAL VALVES IT HAS 105 EMPLOYEES AND SALES OF C16
MILLION 12 MILLION A YEAR

DERLAN SAID THAT IT WILL CONSOLIDATE THREE OF ITS CALIFORNIA AEROSPACE
OPERATIONS TOGETHER WITH ENERGY CONTAINER INTO ONE LARGE PLANT

THESE INITIATIVES ARE EXPECTED TO HAVE A POSITIVE IMPACT ON DERLAN'S US
AEROSPACE EARNINGS BEGINNING IN 1994 AND ACCELERATING IN 1995 IT ADDED
9402220112 940222 BUSINESS BRIEF USBANCORP INC ACQUISITION SET TO
PROCEED ON JOHNSTOWN SAVINGS BANK

USBANCORP INC JOHNSTOWN PA SAID ITS PROPOSED 436 MILLION ACQUISITION
OF JOHNSTOWN SAVINGS BANK WILL PROCEED

UNDER TERMS OF AN AGREEMENT BETWEEN THE TWO BANKS JOHNSTOWN SAVINGS BANK
HAD UNTIL FEB 17 TO FIND A HIGHER BIDDER SINCE NO THIRD PARTY WITH A
HIGHER BID EMERGED THE TWO BANKS SAID THE TRANSACTION WOULD GO FORWARD

THE MARKETING PERIOD STEMMED FROM USBANCORP'S AMENDED BID FOR JOHNSTOWN OF
2250 A SHARE USBANCORP ORIGINALLY OFFERED 2450 A SHARE BUT NEGOTIATED
TO LOWER THE BID WHILE JOHNSTOWN SOUGHT OTHER BIDDERS THE BID IS A
COMBINATION OF CASH AND STOCK

THE ACQUISITION IS EXPECTED TO CLOSE IN JUNE THOUGH THE PACT STILL MUST
MEET CERTAIN STOCKPERFORMANCE PROVISIONS 9402220111 940222 WHO'S NEWS 
AKZO NV

AKZO NV NETHERLANDS THIS GLOBAL CHEMICAL COMPANY NAMED HARRY A BURNS
50 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AKZO SALT INC IN
CLARKS SUMMIT PA MR BURNS WHO WAS AKZO SALT'S EXECUTIVE VICE PRESIDENT
AND CHIEF OPERATING OFFICER AND PRESIDENT OF AKZO SALT LTD IN TORONTO WILL
SUCCEED ALAN B GRAF 65 WHO IS RETIRING 9402220110 940222 MARKETING &
MEDIA FULL APPEALS COURT TO REVIEW RULINGS ON TV INDECENCY  
BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE FULL FEDERAL APPEALS COURT HERE WILL RECONSIDER TWO
DECISIONS STRIKING DOWN FEDERAL RESTRICTIONS ON INDECENT BROADCAST AND
CABLETELEVISION FARE

IN NOVEMBER A THREEJUDGE PANEL OF COURT STRUCK DOWN A FEDERAL
COMMUNICATIONS COMMISSION RULE BANNING INDECENT BROADCASTS BETWEEN 6 AM
AND MIDNIGHT THE PANEL SAID THE BAN WAS TOO BROAD AND THUS VIOLATED
BROADCASTERS' FIRSTAMENDMENT RIGHTS THE FCC WAS UNDER ORDERS FROM CONGRESS
TO EXTEND THE BAN AS A WAY TO PROTECT CHILDREN FROM INDECENT PROGRAMMING

THE SAME PANEL ALSO STRUCK DOWN FCC RULES LETTING CABLETV OPERATORS LIMIT
PROGRAMMING THEY DEEMED INDECENT ON CABLE SYSTEMS' PUBLICACCESS CHANNELS

WHETHER THE DECISIONS WILL BE REVERSED BY THE FULL COURT WHICH CURRENTLY
HAS 10 JUDGES IS UNCERTAIN EFFORTS BY CONGRESS AND THE FCC TO LENGTHEN THE
BAN HAD BEEN STRUCK DOWN TWICE BEFORE THE NOVEMBER RULINGS THE NOVEMBER
APPEALSCOURT DECISIONS HOWEVER WERE MADE BY CHIEF JUDGE ABNER MIKVA ALONG
WITH JUDGES PATRICIA WALD AND HARRY EDWARDS THE COURT'S MOST LIBERAL
MEMBERS

THE FCC DEFINES INDECENT PROGRAMMING AS LANGUAGE OR MATERIAL THAT DEPICTS
OR DESCRIBES IN TERMS PATENTLY OFFENSIVE AS MEASURED BY CONTEMPORARY
COMMUNITY STANDARDS FOR THE BROADCAST MEDIUM SEXUAL OR EXCRETORY ACTIVITIES
OR ORGANS

THE COMMISSION HAS BEEN TINKERING WITH THE INDECENCY RULES SINCE 1987 AND
HAS BEEN OPERATING UNDER A STAY OF ITS RULES LEAVING THE ORIGINAL 6 AM TO
8 PM BAN IN PLACE

JANE MAGO AN FCC LAWYER SAID THE AGENCY WAS PLEASED AT THE PROSPECT OF A
FULLCOURT REVIEW WE FELT WE HAD SOLID ARGUMENTS TO PRESENT TO THE COURT
MS MAGO SAID

THE APPEALS COURT'S LATEST ACTION CAUGHT THE FCC'S OPPONENTS OFF GUARD THE
DECISION WAS A SURPRISE TO US SAID TIMOTHY DYK A WASHINGTON LAWYER WHO
REPRESENTS A COALITION OF BROADCASTERS AND ACTION FOR CHILDREN'S TELEVISION
INC WHICH CHALLENGED THE RULES HE NOTED THAT THE PANEL'S NOVEMBER
DECISION WAS IN KEEPING WITH TWO EARLIER RULINGS IN CASES BROUGHT BY ACTION
FOR CHILDREN'S TELEVISION A PUBLICINTEREST GROUP THAT HAS SUPPORTED BETTER
PROGRAMMING FOR CHILDREN AND FIRSTAMENDMENT RIGHTS FOR BROADCASTERS
9402220109 940222 TECHNOLOGY & HEALTH AZT IS FOUND TO SLASH THE
TRANSMISSION OF HIV FROM MOTHERS TO THEIR INFANTS  BY EMORY THOMAS
JR STAFF REPORTER OF THE WALL STREET JOURNAL

TRANSMISSION FROM MOTHER TO CHILD OF THE VIRUS THAT CAUSES AIDS CAN BE
SIGNIFICANTLY REDUCED BY THE DRUG AZT ACCORDING TO A STUDY SPONSORED BY THE
NATIONAL INSTITUTES OF HEALTH

THE STUDY CONDUCTED IN HEALTH CENTERS IN THE US AND FRANCE FOUND THAT
INFANTS BORN TO WOMEN INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS WERE
ONLY ONETHIRD AS LIKELY 83 COMPARED WITH 255 TO CONTRACT THE
VIRUS IF THEY AND THEIR MOTHERS RECEIVED AZT DURING AND AFTER PREGNANCY
RESEARCHERS PREVIOUSLY HADN'T SHOWN CONVINCINGLY THAT PASSAGE OF THE AIDS
VIRUS FROM MOTHER TO CHILD COULD BE SLOWED BY INTERVENTION

THE TEST RESULTS HAVE BROAD IMPLICATIONS IN TERMS OF BOTH HIV TREATMENT AND
TESTING THE AGENCY HAS LAUNCHED A NATIONWIDE EFFORT TO INFORM PHYSICIANS
ABOUT THE STUDY AND PHYSICIANS ARE EXPECTED IMMEDIATELY TO BEGIN TAKING THE
RESULTS INTO ACCOUNT WHEN CARING FOR PREGNANT WOMEN

IN ADDITION THE STUDY RESULTS SUGGEST NEW BENEFITS FOR HIV TESTING
CURRENTLY HEALTH AGENCIES AND ORGANIZATIONS SUCH AS THE NIH RECOMMEND HIV
TESTING FOR PREGNANT WOMEN IN HIGHRISK GROUPS BUT THERE ISN'T ANY
REQUIREMENT FOR SUCH TESTING

BEGUN IN APRIL 1991 THE NIH STUDY COMPRISED 477 PREGNANT WOMEN INFECTED
WITH HIV THE WOMEN WHO WERE TREATED AT ONE OF 50 CLINICS IN THE US AND
NINE IN FRANCE RECEIVED EITHER AZT OR A PLACEBO DURING PREGNANCY AND LABOR
THE CHILDREN THEY DELIVERED RECEIVED THE SAME DRUG AS THEIR MOTHERS FOR SIX
WEEKS FOLLOWING BIRTH

BY DECEMBER 1993 HIV CULTURE TESTS WERE AVAILABLE FOR 364 INFANTS OF
THESE 53 HAD HIV 13 OF WHOM WERE BORN TO MOTHERS RECEIVING AZT AND 40
TO MOTHERS RECEIVING PLACEBO

THAT IS A HIGHLY SIGNIFICANT BENEFICIAL EFFECT OF AZT SAID ANTHONY S
FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASE
A UNIT OF THE NIH THAT CONDUCTED THE STUDY

DR FAUCI EMPHASIZED THAT THE INFANTS MUST BE STUDIED FURTHER TO DETERMINE
WHETHER AZT CAUSES ANY LONGTERM SIDE EFFECTS SHORTTERM SIDE EFFECTS WERE
LIMITED TO MILD AND REVERSIBLE ANEMIA AMONG SOME OF THE INFANTS

EACH YEAR IN THE US AN ESTIMATED 7000 HIVINFECTED WOMEN GIVE BIRTH TO
INFANTS ABOUT 25 OF WHOM ARE HIVINFECTED

AZT MADE BY BURROUGHS WELLCOME CO IS WIDELY USED BY AIDS PATIENTS AND
THOSE INFECTED WITH HIV THE DRUG HAS BEEN SHOWN TO PREVENT OR DELAY MANY OF
THE CONDITIONS BROUGHT ON BY THE DISEASE BUT AZT IS MORE EFFECTIVE IN THE
SHORTTERM THAN THE LONGTERM DR FAUCI SAID BECAUSE THE VIRUS TENDS TO
DEVELOP RESISTANCE OVER TIME

IN THIS SITUATION YOU'RE REALLY ASKING AZT MERELY TO BE EFFECTIVE FOR A
VERY FINITE PERIOD OF TIME MEASURED IN MONTHS HE SAID AND APPARENTLY
AZT IS CAPABLE OF HAVING A VERY POSITIVE IMPACT UNDER THESE CIRCUMSTANCES

ORIGINALLY THE NIH PLANNED TO ENROLL 748 HIVINFECTED WOMEN IN THE STUDY
BUT THE RESULTS AS OF DECEMBER 1993 WERE SO DRAMATIC DR FAUCI SAID THAT
THE TEST WAS TERMINATED AND ITS RESULTS RELEASED 9402220108 940222
NORTHERN TELECOM GETS CONTRACT

TORONTO NORTHERN TELECOM LTD SAID IT WON A FIVEYEAR CONTRACT VALUED AT
60 MILLION TO SELL PERSONAL WIRELESS COMMUNICATIONS NETWORKS TO TELEZONE
CORP

TELEZONE A COMMUNICATIONS SERVICES COMPANY IS DEVELOPING WIRELESS
TELEPHONE NETWORKS FOR 25 CANADIAN CITIES NORTHERN TELECOM IS BASED IN
MCLEAN VA 9402220107 940222 CORPORATE PERFORMANCE 1993 REVIEW 4TH
QUARTER  COMPANIES' EARNINGS SURGED 61 AS ECONOMY GREW AT A RAPID
PACE  A WALL STREET JOURNAL NEWS ROUNDUP

CORPORATE PROFITS FUELED BY STRONG ECONOMIC GROWTH AND CONTINUED
COSTCUTTING TURNED IN ANOTHER SHARP RISE IN THE FOURTH QUARTER FOR THE
PERIOD 674 MAJOR CORPORATIONS REPORTED NET INCOME SURGED A CUMULATIVE 61
FROM THE 1992 QUARTER ACCORDING TO A WALL STREET JOURNAL SURVEY THE RESULT
COMPARED WITH A 24 GAIN IN THE THIRD QUARTER

AFTERTAX PROFITS FROM CONTINUING OPERATIONS ALSO JUMPED IN THE LATEST
QUARTER WITH A GAIN OF 38 IN THE THIRD QUARTER THE RISE WAS 31

ANALYSTS HAD BEEN LOOKING FOR A SIZABLE EARNINGS GAIN SINCE THE COMMERCE
DEPARTMENT HAD REPORTED THAT THE GROSS DOMESTIC PRODUCT ROSE AT AN ANNUAL
RATE OF 59 IN THE PERIOD SHARPLY HIGHER THAN THE 29 RATE IN THE THIRD
QUARTER BUT THE ACTUAL RESULTS FAR EXCEEDED EXPECTATIONS

ALTHOUGH ECONOMISTS DON'T SEE THE ECONOMY CONTINUING TO GROW AT THE SWIFT
PACE OF THE FOURTH QUARTER THEY DO LOOK FOR REAL GDP GROWTH OF MORE THAN 3
THIS YEAR UP FROM THE 29 RATE FOR 1993 THE EFFECTS OF THE JANUARY
EARTHQUAKE IN CALIFORNIA AND THE WRETCHED WEATHER IN MOST PARTS OF THE
COUNTRY THEY BELIEVE WILL BE MORE THAN OFFSET BY GAINS LATER ON

PROFITS SHOULD BE SURPRISINGLY ROBUST SAYS EDWARD YARDENI OF CJ
LAWRENCE THE EFFORTS MADE BY CORPORATE AMERICA TO BECOME LEAN AND MEAN
WILL PAY OFF IN A BIG WAY

THE CORPORATE DOWNSIZING IS LEADING TO SHARP INCREASES IN PRODUCTIVITY OR
OUTPUT PER MANHOUR STEPHEN S ROACH OF MORGAN STANLEY & CO SAYS
PRODUCTIVITY IN THE QUARTER SURGED AT A 42 ANNUAL RATE FULLY ONE
PERCENTAGE POINT FASTER THAN WE WERE EXPECTING THAT'S THE SECOND QUARTER IN
A ROW OF 4 GAINS A WELCOME TURNAROUND FROM THE 1 AVERAGE DECLINE IN THE
FIRST HALF OF 1993

LACY H HUNT CHIEF ECONOMIST OF CARROLL MCENTEE & MCGINLEY NOTES THAT
EFFORTS TO MAXIMIZE WORKER OUTPUT HAVE LEFT A GREAT DEAL OF SLACK IN THE
LABOR MARKETS THIS HAS ALLOWED COMPANIES TO KEEP WAGE INCREASES EXTREMELY
SMALL ANOTHER FACTOR BOLSTERING PROFITS FOR 1993 AS A WHOLE HE SAYS
UNIT LABOR COSTS ROSE 19 THE SMALLEST INCREASE SINCE 1984 BEFORE THAT
THE LAST TIME WAGE COSTS WERE THIS WELLCONTAINED WAS IN THE 1960S

YET ANOTHER FACTOR AIDING PROFITS IS LOWER INTEREST COSTS PROFITS HAVE
BEEN BOOSTED BY A 21 BILLION DROP IN NET INTEREST PAYMENTS SINCE THE THIRD
QUARTER OF 1991 MR YARDENI SAYS OUR FORECAST OF STILLLOWER LONGTERM
INTEREST RATES SUGGESTS INTEREST COSTS COULD FALL FURTHER

MOST ANALYSTS EXPECT INFLATION TO REMAIN SUBDUED IN 1994 A SITUATION THAT
SHOULD CONTRIBUTE TO PROFIT GAINS THE FEDERAL RESERVE'S RECENT INCREASE IN
THE FEDERAL FUNDS RATE THE FEE BANKS CHARGE ON OVERNIGHT LOANS TO ONE
ANOTHER LIFTED OPTIMISM THAT THE INFLATION RATE THIS YEAR WILL REMAIN A BIT
BELOW 3

ONE DRAG ON PROFITS IN THE PAST YEAR OR SO HAS BEEN A LARGE TRADE DEFICIT
THE US ECONOMY HAS RECOVERED MUCH FASTER THAN MAJOR ECONOMIES OVERSEAS
BOOSTING DEMAND FOR IMPORTS AND WEAKENING FOREIGN MARKETS FOR US EXPORTS

BUT THE OUTLOOK SEEMS TO BE IMPROVING WITH MOST INDUSTRIALIZED COUNTRIES
ON THE ROAD TO RECOVERY FROM THEIR WORST ECONOMIC EXPERIENCE SINCE THE WORLD
WAR II RECONSTRUCTION PERIOD US EXPORTS ARE LIKELY TO GAIN STRENGTH BY
THE MIDDLE OF 1994 SAYS GARY CIMINERO CHIEF ECONOMIST OF THE FLEET
FINANCIAL GROUP

AMONG INDUSTRY GROUPS AUTO MAKERS HAD AN IMPRESSIVE QUARTER WHILE BUILDERS
BENEFITED FROM A SURGING HOUSING SECTOR OIL COMPANIES MEANTIME STRUGGLED
WITH LOWER CRUDE PRICES THE AEROSPACE INDUSTRY SHOWED MIXED RESULTS

GENERAL MOTORS FORD MOTOR AND CHRYSLER RIDING ON BRISK VEHICLE SALES AND
COMPETITIVE BENEFITS OF THE STRONG YEN POSTED SUBSTANTIALLY IMPROVED
FOURTHQUARTER PROFITS GM AND FORD REVERSED YEAREARLIER LOSSES AND
CHRYSLER MORE THAN DOUBLED ITS PROFIT

THE SURGE IN VEHICLE SALES PROMPTED DETROIT TO BOOST FOURTHQUARTER OUTPUT
TO ITS STRONGEST PACE SINCE 1988 AND THE STRONG YEN HAS FORCED UP PRICES OF
JAPANESE CARS ALLOWING THE BIG THREE TO RAISE THEIR PRICES

THE INDUSTRY IS EXPECTED TO PICK UP EVEN MORE STEAM THIS YEAR AND THE BIG
THREE ARE TAKING STEPS TO BOOST PROFITS FURTHER GM FORD AND CHRYSLER HAVE
VOWED TO CONTINUE SLASHING REBATES AND OTHER INCENTIVES TO CUSTOMERS WHICH
CUT INTO EARNINGS ANALYSTS EXPECT DETROIT TO SHOW STRONG GAINS IN CORE
NORTH AMERICAN OPERATIONS GM FOR THE FIRST TIME SINCE 1989 POSTED A SMALL
FOURTHQUARTER PROFIT IN ITS NORTH AMERICAN OPERATIONS

GM'S 1992 QUARTER INCLUDED A 7441 MILLION WRITEDOWN OF ITS INVESTMENT IN
NATIONAL CAR RENTAL SYSTEMS FORD TOOK CHARGES IN THE YEAREARLIER QUARTER
TOTALING 419 MILLION RELATED TO THE RESTRUCTURING OF ITS EUROPEAN AUTO
OPERATIONS AND EUROPEAN FINANCIALSERVICES ACTIVITIES

BUILDERS HELPED BY A YEAR OF STRONG HOUSING STARTS POSTED ROBUST GAINS
COMPANIES BENEFITED FROM THE BIGGEST FOURTH QUARTER IN 16 YEARS FOR
SINGLEFAMILY RESIDENTIAL CONSTRUCTION INDEED HOUSING WAS THE
FASTESTGROWING SEGMENT OF THE ECONOMY IN THE QUARTER HISTORICALLY LOW
INTEREST RATES CONTINUED TO ENTICE BUYERS INTO THE MARKET EVEN THE
LONGSUFFERING CALIFORNIA MARKETS REPORTED ENCOURAGING SALES

OAKWOOD'S EARNINGS WERE DRIVEN BY A BOOMING SOUTHEAST MARKET FOR
MANUFACTURED HOMES STANDARD PACIFIC WHILE POSTING A DROP IN PROFIT
REPORTED HEAVY ORDERS AND PARED DOWN DEBT KAUFMAN & BROAD TOOK CHARGES ON
ITS FRENCH OPERATIONS CRIMPED BY A RECESSION

LOOKING AHEAD RECENT LUMBER PRICE VOLATILITY AND LAND AVAILABILITY ARE
CONCERNS BUT DESPITE THESE FACTORS AND A HUGE DROP IN STARTS DURING
JANUARY BECAUSE OF COLD WEATHER THE INDUSTRY EXPECTS ANOTHER BIG YEAR IN
1994

SHARPLY LOWER CRUDE OIL PRICES CONTINUED TO PLAGUE MAJOR OIL COMPANIES
CRUDE PRICES IN THE QUARTER WERE ABOUT 4 A BARREL BELOW YEAREARLIER
LEVELS NATURAL GAS PRICES THOUGH STRONG WERE ALSO LOWER

THE DROP IN PRICES HURT THE OILPRODUCING SECTORS OF MANY COMPANIES BUT
HELPED COMPANIES WITH BIG REFINING AND MARKETING OPERATIONS ASHLAND SAID
ITS PROFIT WAS BASED LARGELY ON HIGHLY FAVORABLE REFINERY PROFIT MARGINS
MOBIL WHICH POSTED A SOLID OPERATING PROFIT SAID ITS DOWNSTREAM OPERATIONS
IN THE US AND FAR EAST WERE ESPECIALLY LUCRATIVE MOBIL'S RESULTS INCLUDED
A CHARGE OF 253 MILLION

COMPANIES THAT COULD INCREASE OUTPUT WERE SOMEWHAT ABLE TO OFFSET THE DROP
IN CRUDE PRICES EXXON'S PRODUCTION JUMPED AS IT BROUGHT ON SEVERAL OIL AND
GAS PROJECTS CONVERSELY ARCO'S OIL PRODUCTION SLIPPED IN THE US ARCO'S
LOSS WAS THE RESULT OF A 487 MILLION CHARGE RELATED TO THE REORGANIZATION
OF OIL AND GAS OPERATIONS

CHEVRON SAID IT WAS ABLE TO MAINTAIN A RELATIVELY STRONG OPERATING
PERFORMANCE BECAUSE OF THE STRENGTH OF ITS INTERNATIONAL OPERATIONS IN BOTH
UPSTREAM AND DOWNSTREAM BUSINESSES BUT THE COMPANY'S NET WAS AFFECTED BY A
221 MILLION CHARGE WHILE THE YEAREARLIER QUARTER INCLUDED A GAIN OF 546
MILLION

AEROSPACE COMPANIES' MIXED PERFORMANCE REFLECTED THE INDUSTRY'S RECENT STATE
OF EXTREMES

AS THE INDUSTRY CONTINUED TO CONSOLIDATE BECAUSE OF LOWER SPENDING BY THE
MILITARY COMPANIES SUCH AS LORAL AND MARTIN MARIETTA CAME AWAY WINNERS
BENEFITING FROM PREVIOUS ACQUISITIONS

BUT OTHERS SUFFERED AMID THE SHRINKAGE SOME COMPANIES WERE HIT BY CHARGES
FOR PLANT CLOSURES AND OTHER RESTRUCTURING MOVES GRUMMAN TOOK AN 85
MILLION RESTRUCTURING CHARGE OTHERS WERE HURT BY A CONTINUED RELIANCE ON
FIXEDPRICE PENTAGON DEVELOPMENT CONTRACTS MCDONNELL DOUGLAS TOOK A 450
MILLION PRETAX CHARGE ASSOCIATED WITH ITS C17 TRANSPORT PLANE WHILE
NORTHROP'S TSSAM MISSILE PROMPTED A CHARGE OF 107 MILLION

GENERAL DYNAMICS' EARNINGS DROP REFLECTED ITS DWINDLING VOLUME OF BUSINESS
AND GAINS A YEAREARLIER ASSOCIATED WITH A SELLOFF OF SOME OPERATIONS

PROFITS ALSO TUMBLED AT BOEING BUT FOR DIFFERENT REASONS AMONG THEM
PERSISTENT HARD TIMES IN THE AIRLINE INDUSTRY AND HEAVY INVESTMENT IN NEW
JET TYPES IN ANTICIPATION OF BETTER DAYS AHEAD

HERE ARE THE FOURTHQUARTER PROFITS FOR VARIOUS INDUSTRY GROUPS AND
COMPARISONS WITH THE YEAREARLIER QUARTER WHEN INDIVIDUAL COMPANIES REPORT
FOR THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE
PERIODS ARE USED IN ALL OF THE TABLES 000S ARE OMITTED

STEEL COMPANIES COMING OUT OF A DEEP INDUSTRY RECESSION SAW DEMAND
CONTINUE TO CLIMB AS THE ECONOMY STRENGTHENED THE MAIN PROPELLANT FOR
HIGHER ORDERS AND SHIPMENTS WAS THE AUTO INDUSTRY THOUGH OTHER BUYERS
INCLUDING APPLIANCE MAKERS ALSO CONTRIBUTED PRODUCERS WERE OPERATING AT OR
NEAR CAPACITY AND SEVERAL WERE FORCED TO IMPORT SEMIFINISHED STEEL TO KEEP
UP WITH DEMAND BETHLEHEM STEEL'S LOSS REFLECTED A 290 MILLION
RESTRUCTURING CHARGE

THE STEEL INDUSTRY EXPECTS A STRONG FIRST QUARTER A 3 PRICE INCREASE IN
JANUARY IS STICKING AND MOST STEELMAKERS ALREADY ARE BOOKED THROUGH THE
QUARTER'S END

A GLOBAL ALUMINUM GLUT CONTINUED TO PLAGUE PRODUCERS THE GLUT WAS CAUSED
LARGELY BY SHARPLY HIGHER RUSSIAN EXPORTS A RESULT OF THE COLLAPSE OF THE
FORMER SOVIET UNION AND ITS MILITARY WHICH WAS A HUGE ALUMINUM CONSUMER
THE OVERSUPPLY SENT PRICES PLUNGING TO HISTORIC LOWS ON AN
INFLATIONADJUSTED BASIS ALCOA'S RESULTS INCLUDED A 702 MILLION CHARGE
FOR A WORKFORCE REDUCTION AND PLANT CLOSINGS REYNOLDS'S RESULTS INCLUDED
RESTRUCTURING CHARGES OF 2195 MILLION

FORESTPRODUCTS COMPANIES FINISHED STRONG IN 1993 BUOYED BY THE REBOUND IN
THE HOUSING MARKET AND REGIONAL SUPPLY CONSTRAINTS IN THE PACIFIC
NORTHWEST LOGGING CUTBACKS ON FEDERAL TIMBERLAND PUSHED FOURTHQUARTER
LUMBER PRICES TO RECORD HIGHS PRICES SLIPPED SOMEWHAT IN JANUARY BECAUSE OF
HARSH WEATHER IN THE NORTHEAST AND MIDWEST BUT WITH HOUSING STARTS EXPECTED
TO CONTINUE ITS STRONG PERFORMANCE THIS YEAR ANALYSTS SAID PRICES WILL
REMAIN HIGH

GEORGIAPACIFIC'S RESULTS MOSTLY REFLECTED A 95 MILLION LOSS ON THE
COMPANY'S PULP AND PAPER SIDE

SEVERAL PULP AND PAPER COMPANIES SHOWED A SLIGHT IMPROVEMENT WITH ANALYSTS
PREDICTING THE SECTOR'S PROLONGED RECESSION MAY BE READY TO BOTTOM OUT IF
THE ECONOMY REMAINS STRONG FOURTHQUARTER PRICE INCREASES FOR LINERBOARD
AND UNCOATED WHITE PAPER WILL TEMPER EXPECTED LOSSES IN THE OVERALL PAPER
SECTOR

CHEMICAL MAKERS BENEFITED FROM CONTINUED STRENGTHENING IN THE NORTH AMERICAN
ECONOMY PARTICULARLY IN THE HOUSING AND AUTO SECTORS UNIT VOLUME CLIMBED
AND EARLIER COSTCUTTING EFFORTS CONTINUED TO IMPROVE PROFIT MARGINS AT A
NUMBER OF COMPANIES BUT PRICES FOR MANY COMMODITY CHEMICALS AND PLASTICS
REMAINED SOFT AND THE IMPORTANT EUROPEAN MARKET REMAINED SEVERELY
DEPRESSED WITH SALES IN JAPAN ALSO SOFT

UNDERLYING OPERATING RESULTS SHOWED YEARTOYEAR IMPROVEMENT FOR MANY
COMPANIES ALTHOUGH A SLEW OF SPECIAL CHARGES SUCH AS THE 1317 MILLION
RESTRUCTURING CHARGE AT OLIN THE 200 MILLION GAIN AT WR GRACE OR THE
YEAREARLIER 327 MILLION CHARGE AT DUPONT SKEWED COMPARISONS ON A
NETINCOME BASIS

WHILE THE INDUSTRY REMAINS IN A CYCLICAL LOW IT'S THOUGHT TO HAVE HIT
BOTTOM IN THE LATTER PART OF 1993

NATURALGAS PIPELINE PROFITS GENERALLY ROSE MANY COMPANIES REPORTED HIGHER
VOLUMES AND LOWER OPERATING EXPENSES THE LATTER DUE TO WIDESPREAD
COSTREDUCTION PROGRAMS IN THE PAST YEAR ANALYSTS SAID MOST OF THE
COMPANIES BEGAN RECOUPING THEIR TRANSITIONAL OPERATING COSTS UNDER NEW
FEDERAL RULES UNDER WHICH THEY HAVE LARGELY SHED THEIR BUYERSELLER ROLE TO
BECOME GAS TRANSPORTERS MANY INDUSTRIAL AND UTILITIES CUSTOMERS RUSHED TO
KEEP THEIR GAS STORAGE TANKS FILLED TO GET AHEAD OF RISING PRICES RESULTING
FROM THE COLD SPELL THAT STRUCK PARTS OF THE US IN DECEMBER ANALYSTS
EXPECT GAS DEMAND WILL CONTINUE STRONG IN THE FIRST QUARTER BECAUSE OF THE
COLD WEATHER THAT HIT MUCH OF THE COUNTRY

PANHANDLE EASTERN'S RESULTS INCLUDED A CHARGE OF 602 MILLION FROM THE
SETTLEMENT OF CERTAIN FEDERAL REGULATORY ISSUES TRANSCO HAD A CHARGE FROM A
REDUCTION IN ITS ESTIMATE OF CERTAIN RESERVES

MAJOR RAILROADS REPORTED STRONGER EARNINGS BENEFITING FROM ROBUST SHIPMENTS
OF NEW AUTOMOBILES AND CONTAINERS AND CONTINUED GAINS IN PRODUCTIVITY
NORFOLK SOUTHERN SAID IT REDUCED EXPENSES AT ITS TRUCKING UNIT AND ON ITS
RAILROAD WHILE FREIGHTTRAFFIC GAINS IN MOST COMMODITIES OFFSET WEAK COAL
SHIPMENTS SANTA FE PACIFIC'S YEAREARLIER QUARTER INCLUDED A PRETAX GAIN OF
2049 MILLION FROM THE SALE OF RAIL LINES ANALYSTS EXPECT SIGNIFICANT
GAINS IN THE CURRENT QUARTER REFLECTING STRONG FREIGHT VOLUMES TEMPERED BY
HIGHER COSTS FROM THE HARSH WINTER WEATHER

TRUCK COMPANIES ALSO IMPROVED THEIR EARNINGS HELPED BY THE ECONOMIC
RECOVERY AND SOME STABILIZATION OF FREIGHT RATES IN THE FIERCELY COMPETITIVE
LESSTHANTRUCKLOAD MARKET CONSOLIDATED FREIGHTWAYS SAID A TURNAROUND AT
ITS AIRFREIGHT CONCERN AND CONTINUED STRONG EARNINGS FROM ITS REGIONAL
TRUCKING UNITS OFFSET DECLINING PROFITS AT ITS LONGHAUL TRUCKING BUSINESS
ROADWAY SERVICES SAID ITS EARNINGS DECLINE WAS PRIMARILY FROM EXPECTED
STARTUP LOSSES AT ITS NEW AIRFREIGHT COMPANY

EARNINGS FOR AIRFREIGHT CARRIERS CONTINUED TO IMPROVE HELPED BY LOWER
COSTS RISING VOLUME AND STABLE PRICES FEDERAL EXPRESS POSTED A PROFIT IN
INTERNATIONAL OPERATIONS OF 21 MILLION AFTER YEARS OF LOSSES YIELDS
HOWEVER CONTINUED TO FALL IN THE INDUSTRY AS CUSTOMERS TURN TO CHEAPER
AFTERNOON OR SECONDDAY SERVICE INDUSTRY EXECUTIVES SAY THE FIRST QUARTER
WILL BE DEPRESSED BY EFFECTS OF THE WINTER STORMS AND CALIFORNIA EARTHQUAKE

A RESURGENCE IN DEMAND CONTINUED TO HELP MAKERS OF HEAVY MACHINERY
CATERPILLAR'S STRONG PROFIT SURPRISED EVEN OPTIMISTIC ANALYSTS AND DEERE
POSTED ITS BEST FOURTH QUARTER EVER BOTH BENEFITED FROM HIGHER PRODUCTION
AND HIGHER PRICES

DESPITE THE STRENGTHENING ECONOMY AND IMPROVING CONSUMER CONFIDENCE
EARNINGS FOR BIG RETAILERS WERE HELD BACK BY CONTINUED CONSUMER INDIFFERENCE
TO APPAREL PURCHASES AND SLIMMER PROFIT MARGINS RESULTING FROM TOUGH
COMPETITION THE SEVERE WEATHER THROUGH MUCH OF THE COUNTRY IN DECEMBER AND
JANUARY AND THE LOS ANGELES EARTHQUAKE HURT FOURTHQUARTER RESULTS SAY
INDUSTRY WATCHERS

THE FISCAL YEAR FOR MOST RETAILERS DIDN'T CONCLUDE UNTIL THE END OF JANUARY
AND MOST COMPANIES HAVEN'T YET REPORTED FOURTHQUARTER EARNINGS SEARS
ROEBUCK ONE OF FEW THAT REPORT ON A CALENDARYEAR BASIS POSTED A STRONG
PROFIT BUT THE RESULT FELL SHORT OF EXPECTATIONS ITS EARNINGS WERE HURT BY
INTENSE PRICE COMPETITION AND LARGERTHANNORMAL ADVERTISING EXPENSES THE
YEAREARLIER PERIOD INCLUDED CHARGES OF 242 BILLION FOR RESTRUCTURING
HURRICANE LOSSES AND ACCOUNTING CHANGES

HOTEL AND CASINO COMPANIES GENERALLY PRODUCED SOMEWHAT STRONGER RESULTS FOR
THE QUARTER USUALLY A SLOW TIME FOR BOTH INDUSTRIES LODGING COMPANIES
CONTINUED TO EXPERIENCE GRADUAL IMPROVEMENTS IN OCCUPANCY WHILE SEVERAL
CASINO OPERATORS BEGAN TO SHOW REVENUE INCREASES FROM MAJOR NEW LAS VEGAS
RESORTS AND RIVERBOAT CASINOS

IN THE RESTAURANT INDUSTRY OVERALL EARNINGS WERE UP AS CONSUMER DEMAND
RECOVERED AND FOOD AND LABOR COSTS REMAINED MANAGEABLE MCDONALD'S WAS
HELPED IN PART BY RESTAURANT EXPANSION AND HIGHER SALES AT EXISTING
RESTAURANTS WORLDWIDE

NEWSPAPER PUBLISHERS TURNED IN STRONG EARNINGS GAINS WITH MOST EXCEEDING
ANALYSTS' ESTIMATES THE TURNAROUND WAS DUE TO A LONGAWAITED JUMP IN
CLASSIFIED ADS COUPLED WITH SEVERAL YEARS OF COSTCUTTING MCGRAWHILL'S
RESULTS INCLUDED PRETAX CHARGES OF 230 MILLION ASSOCIATED WITH AN
ACQUISITION TIMES MIRROR'S RESULTS REFLECTED A RESTRUCTURING CHARGE OF
764 MILLION IN THE LATEST QUARTER AND A 1837 MILLION CHARGE A YEAR
EARLIER NEW YORK TIMES' LOSS REFLECTED SEVERAL CHARGES

AIRLINES SHOWED NARROWED LOSSES FROM A YEAR EARLIER AND MANY CARRIERS HAD
SMALL OPERATING PROFITS THOSE ARE FURTHER SIGNS THAT THE INDUSTRY IS
PULLING ITSELF OUT OF ITS DOLDRUMS ESPECIALLY CONSIDERING THAT THE FOURTH
QUARTER IS TYPICALLY VERY WEAK FOR AIRLINES

EVEN SO ONE REASON FOR THE IMPROVEMENT WAS THE COMPARISON WITH AN
UNFAVORABLE 1992 QUARTER FOR MANY CARRIERS THAT PERIOD INCLUDED EFFECTS
FROM BRUISING FARE WARS AND BIG ACCOUNTING CHANGES

THERE WERE SEVERAL EXCEPTIONS TO THE QUARTER'S PATTERN AMR'S LOSSES WIDENED
BECAUSE ITS AMERICAN AIRLINES UNIT WAS CRIPPLED BY A FIVEDAY FLIGHT
ATTENDANTS' STRIKE IN NOVEMBER THE COMPANY SAID THE WALKOUT COST IT 190
MILLION AND WHILE DELTA AIR LINES MANAGED TO NARROW ITS LOSSES ITS 1801
MILLION OPERATING LOSS WAS STILL SKYHIGH SOUTHWEST AIRLINES AGAIN POSTED A
HIGHER PROFIT FUELED IN PART BY ITS SUCCESSFUL ADDITION OF BALTIMORE ITS
FIRST EAST COAST CITY TO ITS ROUTE STRUCTURE

CONSUMER FOOD COMPANIES SLOGGED THROUGH A DIFFICULT QUARTER AS HIGHER
COMMODITY COSTS VALUECONSCIOUS US CONSUMERS AND WEAK OVERSEAS CURRENCIES
HOBBLED RESULTS

BORDEN WAS HIT BY DISAPPOINTING DAIRY AND PASTA SALES PARTLY BECAUSE OF
INROADS BY PRIVATELABEL COMPANIES AS WELL AS BY A 632 MILLION
RESTRUCTURING CHARGE PET TOOK A ONETIME CHARGE FOR DIVESTMENT OF SOME
UNITS DOLE FOOD REPORTED ANOTHER FOURTHQUARTER LOSS REFLECTING LOWER
PRICES FOR FRUITS AND BEVERAGES AND THE JAPANESE RECESSION RJR NABISCO'S
LOSS LARGELY REFLECTED A CHARGE RELATED TO WORKFORCE CUTS CAMPBELL SOUP
REPORTED HIGHER OVERSEAS SOUP VOLUME AND A SLIGHT EARNINGS IMPROVEMENT IN
THE US

THE MAJOR BEVERAGE COMPANIES REPORTED HIGHER PROFITS HELPED BY CONTINUED
GROWTH OF NONCOLA DRINKS IN THE US AND LOWER PACKAGING COSTS COCACOLA'S
OVERSEAS SALES VOLUME WAS UP 7 REFLECTING IMPROVED PERFORMANCE IN KEY
PROFIT CENTERS JAPAN BRITAIN AND GERMANY THAT HAD BEEN POSTING
DECLINES IN RECENT QUARTERS PEPSICO'S INTERNATIONAL BEVERAGE PROFITS FELL
HURT BY EXPANSION COSTS AND OTHER FACTORS ALTHOUGH EXPANDED BREWING
CAPACITY HELPED ANHEUSERBUSCH INCREASE VOLUME THE COMPANY STILL SUFFERED
FROM COMPETITIVE PRICING CONDITIONS AND THE STRENGTH OF LOWERPRICED BRANDS
THAT ARE EDGING OUT PREMIUM BRANDS

HEALTHMAINTENANCE ORGANIZATIONS REPORTED ANOTHER QUARTER OF ROBUST EARNINGS
GROWTH BENEFITING FROM A SLOWDOWN IN MEDICAL INFLATION US HEALTHCARE
SAID ITS MEDICALLOSS RATIO THE STANDARD INDUSTRY GAUGE OF EXPENSES
ASSOCIATED WITH PATIENT CARE AMOUNTED TO JUST 68 OF REVENUE DOWN FROM
73 A YEAR EARLIER

HOSPITAL CHAINS REPORTED MIXED RESULTS SEVERAL GROUPS WERE AIDED BY
INCREASED REVENUE FROM OUTPATIENT SERVICES BUT NATIONAL MEDICAL'S LOSS FOR
ITS FISCAL SECOND QUARTER REFLECTED A 287 MILLION LOSS FROM DISCONTINUED
OPERATIONS

THE PHARMACEUTICAL INDUSTRY'S PROFITS WERE MIXED WITH SEVERAL COMPANIES
REPORTING BIG CHARGES

BRISTOLMYERS HAD A 500 MILLION PRETAX SPECIAL CHARGE TO SETTLE PENDING AND
FUTURE BREASTIMPLANT PRODUCT LIABILITY CLAIMS ELI LILLY TOOK A 12
BILLION PRETAX RESTRUCTURING CHARGE WARNERLAMBERT'S LOSS REFLECTED A 468
MILLION PRETAX RESTRUCTURING CHARGE

WALL STREET WAS SORELY DISAPPOINTED WITH PFIZER'S SALES AND EARNINGS PFIZER
HAD BEEN CONSIDERED THE STRONGEST OF THE PHARMACEUTICAL COMPANIES

IN THE COMPUTER INDUSTRY COMPETITIVE PRICING PRESSURES AND UNFAVORABLE
CURRENCY TRANSLATIONS RESTRAINED PROFITS AND MADE TURNAROUNDS DIFFICULT FOR
STRUGGLING COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES AND DIGITAL
EQUIPMENT

THOUGH IBM REPORTED ITS FIRST PROFIT IN TWO YEARS AND IS EXPECTED TO REMAIN
IN THE BLACK IN 1994 ITS MASSIVE RESTRUCTURING CHARGES APPEAR TO BE OVER
 MOST ANALYSTS AREN'T DECLARING A TURNAROUND YET AS WITH OTHER COMPANIES
THE QUESTION REMAINS HOW TO INCREASE REVENUE AND MAINTAIN PROFIT MARGINS IN
SUCH A TOUGH ENVIRONMENT

ANALYSTS BELIEVE WORKSTATION HARDWARE SALES WERE DEPRESSED BECAUSE
MICROSOFT'S MUCHANTICIPATED ADVANCED OPERATING SYSTEM NT WAS SLOW TO CATCH
ON SUN MICROSYSTEMS AND HEWLETTPACKARD BOTH SHOWED STRONG SALES
NONETHELESS AMDAHL'S SURPRISE LOSS REFLECTED THE CONTINUING SLIDE OF
MAINFRAME SALES

COMPAQ'S STRONG SHOWING SURPRISED ANALYSTS ITS SALES GROWTH AND EFFICIENCY
THREATEN IBM AND APPLE APPLE HAD A POOR SHOWING IN THE QUARTER AND IS IN
THE MIDST OF A RISKY TRANSITION IN ITS PERSONAL COMPUTER LINE

AMONG CHIP MANUFACTURERS DEMAND FOR COMPUTING AND COMMUNICATIONS POWER HAD
FACTORIES RUNNING AT FULL TILT AND KEPT PROFIT MARGINS HEALTHY INTEL CHIEF
SUPPLIER TO THE COMPUTER INDUSTRY POSTED SLOWERTHANEXPECTED EARNINGS
GROWTH BECAUSE OF HEAVY SPENDING TO SHIFT ITS POPULAR MICROPROCESSOR CHIPS
TO A NEW PRODUCTION PROCESS ADVANCED MICRO'S PROFIT DROP RESULTED FROM
COSTS RELATED TO FIGHTING INTEL IN COURT AND SOME MISSED SHIPMENTS THAT
SHOULD BE COMPLETED IN THE FIRST QUARTER

SOFTWARE MAKERS SAW STRONG GROWTH AND HEALTHY PROFITS AS CUSTOMERS CONTINUED
TO PAY A PREMIUM FOR PROGRAMS THAT BRING OUT THE VALUE IN THEIR COMPUTERS
ADOBE SYSTEMS AND LOTUS DEVELOPMENT LED A PACK OF COMPANIES THAT TARGET PCS
EVEN BORLAND THE PC SOFTWARE LAGGARD EDGED INTO THE BLACK IN DATABASE
SOFTWARE ORACLE CONTINUED TO SET THE PACE

BANKS CONTINUED TO REPORT IMPRESSIVE EARNINGS BENEFITING FROM WIDE MARGINS
BETWEEN LENDING RATES AND THE BANKS' OWN COST OF FUNDS THEY WERE ALSO
HELPED BY LOWER LOANLOSS PROVISIONS CONTINUED COSTCUTTING AND INCREASED
LENDING

FOR BIG BANKS TRADING PROFITS CONTINUED TO BE STRONG PARTICULARLY AT JP
MORGAN AND BANKERS TRUST NEW YORK BANKERS TRUST REPORTED A RECORD 449
MILLION IN TRADING REVENUE WHILE MORGAN'S WAS 606 MILLION UP SHARPLY FROM
200 MILLION A YEAR EARLIER

FOR MOST BANKS WHICH CONTINUE TO RELY ON LENDING FOR A MAJOR PORTION OF
THEIR REVENUE NET INTEREST MARGINS SLIPPED SOMEWHAT IN THE LATEST PERIOD
BUT REMAINED AT HISTORICALLY WIDE LEVELS

THRIFTS GENERALLY POSTED A SOLID QUARTER BUOYED BY LOW INTEREST RATES AND
THE IMPROVING ECONOMY HF AHMANSON'S RESULTS REFLECTED A SHARP DROP IN
NONPERFORMING ASSETS TO 189 OF TOTAL ASSETS THEIR LOWEST LEVEL SINCE
JANUARY 1991 GOLDEN WEST'S EARNINGS THOUGH DOWN SLIGHTLY WERE A BIT ABOVE
ANALYSTS' EXPECTATIONS GREAT WESTERN IN THE MIDST OF WHAT SOME ANALYSTS
SAY IS AN OVERDUE CAMPAIGN TO CUT COSTS AND CLEAN UP ITS PORTFOLIO DROVE
DOWN ITS LEVEL OF BAD ASSETS TO 209 FROM AN EXTREMELY HIGH 512 A YEAR
EARLIER

IN THE BROKERAGE INDUSTRY IT WAS HARD NOT TO MAKE MONEY ON WALL STREET IN
THE FOURTH QUARTER IN GENERAL TRADING MONEY MANAGEMENT AND SALES OF
SECURITIES WERE PROFITABLE BUSINESSES FOR SECURITIES FIRMS AS THE INDUSTRY'S
THREEYEAROLD BOOM ROLLED ON

POWERING THE INDUSTRY'S PROFIT SURGE WAS IN THE US RECORD ISSUANCE OF
NEW STOCKS AND BONDS AND IN THE OVERSEAS MARKETS DOUBLEDIGIT AND EVEN
TRIPLEDIGIT GAINS IN STOCKS AND BONDS MOREOVER MANY FIRMS REPORTED THAT
COMMISSION INCOME ROSE 20 OR MORE AS INDIVIDUAL INVESTORS CONTINUED TO
SEEK SECURITIES THAT OFFER RICHER YIELDS THAN THE STANDARD BANK CERTIFICATE
OF DEPOSIT

THE REGIONAL BELL TELEPHONE COMPANIES TURNED IN A STELLAR PERFORMANCE AS
THEY CONTINUED TO COURT POSSIBLE CABLE PARTNERS AND PUSH AHEAD WITH PLANS TO
BUILD INTERACTIVE NETWORKS ACCESS LINE GROWTH ONE MEASURE OF BELL HEALTH
SHOWED STRONG GROWTH AND CELLULAR GROWTH CONTINUED TO GAIN STEAM BUT THE
COMPANIES' FINANCIAL PERFORMANCES WERE OVERSHADOWED BY EXPECTED BUT MASSIVE
WRITEOFFS TO PAY FOR LONGOVERDUE DOWNSIZINGS

MEANTIME WHILE AMERICAN TELEPHONE & TELEGRAPH'S NET SLIPPED BECAUSE OF
ACCOUNTINGRELATED CHARGES INCREASES IN LONGDISTANCE CALLING AND
PHONEEQUIPMENT ORDERS OVERSEAS BOOSTED OPERATING PROFIT