THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BEAZER HOMES USA INC 115 MILLION OF 10YEAR SENIOR NOTES VIA DILLON READ & CO BALLY'S PARK PLACE FUNDING 425 MILLION OF 10YEAR FIRST MORTGAGE NOTES VIA MERRILL LYNCH & CO DAIRY MART CONVENIENCE STORES INC 75 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA BEAR STEARNS & CO DOMAN INDUSTRIES LTD 425 MILLION OF 10YEAR NOTES VIA BEAR STEARNS ACF INDUSTRIES HOLDING CORP 200 MILLION OF FIVEYEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH ACF INDUSTRIES INC 250 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL LYNCH AES CHINA GENERATING CO INITIAL 10 MILLION CLASS A COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BEAZER HOMES USA INC INITIAL SIX MILLION SHARES VIA DILLON READ AND SMITH BARNEY SHEARSON INC BIRMINGHAM STEEL CORP FIVE MILLION SHARES VIA GOLDMAN SACHS & CO CASINO DATA SYSTEMS 16 MILLION SHARES VIA MONTGOMERY SECURITIES AND KEMPER SECURITIES INC CONCORD HOLDING CORP INITIAL 26 MILLION SHARES VIA BEAR STEARNS AND MONTGOMERY SECURITIES EMMIS BROADCASTING CORP INITIAL 33 CLASS A COMMON SHARES VIA MORGAN STANLEY & CO ELECTROGLAS INC TWO MILLION SHARES VIA LEHMAN BROTHERS GLOBAL VILLAGE COMMUNICATIONS INC INITIAL 24 MILLION SHARES VIA MONTGOMERY SECURITIES & HAMBRECHT & QUIST INC HOLLYWOOD ENTERTAINMENT CORP 13 MILLION SHARES VIA MONTGOMERY SECURITIES JARDINE FLEMING INDIA FUND INITIAL FOUR MILLION SHARES VIA PAINEWEBBER INC AND ROBERT FLEMING INC RENAL TREATMENT CENTERS INC 3250000 SHARES VIA CS FIRST BOSTON SAFETY FIRST INC 12 MILLION SHARES VIA PRUDENTIAL SECURITIES INC SOUTH AFRICA FUND INC INITIAL 46 MILLION SHARES VIA MERRILL LYNCH AND SMITH BARNEY SHEARSON WHEATLEY TXT CORP FOUR MILLION SHARES VIA MERRILL LYNCH AND CS FIRST BOSTON UNIVERSITY OF CALIFORNIA 1378 MILLION OF SERIES 1994A REFUNDING BONDS VIA COMPETITIVE BID HAWAII HOUSING FINANCE & DEVELOPMENT CORP 269 MILLION OF MORTGAGEPURCHASE REVENUE BONDS VIA A DEAN WITTER REYNOLDS INC GROUP OHIO TURNPIKE COMMISSION 125 MILLION OF TURNPIKE REVENUE BONDS VIA A PAINEWEBBER GROUP 9402220105 940222 QUAKER OATS PREDICTS PERSHARE PROFIT FOR SECOND HALF WILL BE UP STRONGLY' BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTSDALE ARIZ QUAKER OATS CO PREDICTED THAT ITS SECONDHALF EARNINGS PER SHARE WOULD BE UP STRONGLY ON GOOD VOLUME GROWTH IN THE US WE EXPECT PROFIT MARGINS IN THE US TO CONTINUE IMPROVING TO 13 FOR THE YEAR WHILE OUR INTERNATIONAL MARGINS WILL BE FLAT PHILIP A MARINEAU PRESIDENT AND CHIEF OPERATING OFFICER TOLD SECURITIES ANALYSTS AND PORTFOLIO MANAGERS AT A CONFERENCE HERE MR MARINEAU ALSO SAID CASH FLOW CONTINUES TO BE STRONG IN THE RANGE OF 100 MILLION THE COMPANY'S OUTLOOK FOR THE US GROCERY BUSINESS IS FOR STRONG VOLUME GROWTH TO CONTINUE PRODUCING VOLUME GAINS FOR THE YEAR OF BETWEEN 5 AND 6 IN OUR INTERNATIONAL GROCERY BUSINESS VOLUMES SHOULD BE UP MODESTLY IN THE RANGE OF 3 AS GATORADE'S STRONG INTERNATIONAL GROWTH IS COUNTERED SOMEWHAT BY SOFT ECONOMIES IN EUROPE MR MARINEAU SAID GATORADE IS QUAKER'S MOST IMPORTANT PRODUCT AND COMPANY EXECUTIVES PREDICTED THAT THE SPORT DRINK'S INTERNATIONAL SALES THIS YEAR WOULD EXCEED 200 MILLION BY THE END OF THE '90S WE PLAN FOR GATORADE SALES OF 1 BILLION A YEAR OUTSIDE THE US MR MARINEAU SAID THE COMPANY INDICATED HOWEVER THAT ALTHOUGH GATORADE VOLUMES ARE UP MORE THAN 20 IN EUROPE SO FAR THIS YEAR IT EXPECTS TO CONTINUE UNDERWRITING THE EXPANSION ON THE CONTINENT FOR A FEW MORE YEARS MR MARINEAU CITED TWO FACTORS FOR THAT INTENSE ENTRENCHED COMPETITION AND VERY HIGH MERCHANDISING COSTS GATORADE WAS INTRODUCED IN HOLLAND AND AUSTRIA EARLIER THIS YEAR HOT CEREAL VOLUMES ROSE 5 IN THE LATEST 52WEEK PERIOD AND THE COMPANY SAID IT HAD MADE THE NET EFFECTIVE PRICE OF STANDARD QUAKER OATS MORE COMPETITIVE WITH PRIVATELABEL BRANDS IN THE SAME PERIOD CONSUMER PURCHASES OF INSTANT QUAKER OATMEAL WERE UP 11 THE COMPANY'S US MARKET SHARE OF THE READYTOEAT CEREAL CATEGORY IS 78 MR MARINEAU SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY QUAKER OATS SHARES CLOSED AT 63 DOWN 25 CENTS 9402220104 940222 BUSINESS BRIEF CHEUNG KONG HOLDINGS LTD COMPANY WON'T RULE OUT SPINOFF OF ITS CHINA UNITS CHEUNG KONG HOLDINGS LTD THE FLAGSHIP GROUP OF BILLIONAIRE LI KASHING SAID IT WOULDN'T RULE OUT A SPINOFF OF ITS CHINA UNITS BUT THAT IT HAS NO IMMEDIATE PLANS TO DO SO IN A BRIEF STATEMENT TO THE STOCK EXCHANGE OF HONG KONG FRIDAY CHEUNG KONG SAID THE COMPANY DOES NOT RULE OUT THE POSSIBILITY OF SPINNING OFF ITS CHINA BUSINESSES IN THE FUTURE THE COMPANY IS FULLY AWARE OF THE LISTING REQUIREMENTS OF THE STOCK EXCHANGE AND HAS NO IMMEDIATE PLANS FOR THE SPINOFF CHEUNG KONG SAID INVESTORS SHOULD EXERCISE CAUTION IN DEALING IN ITS SHARES CHEUNG KONG WHICH CONTROLS THE LISTED CONGLOMERATE HUTCHISON WHAMPOA LTD HAS WIDERANGING INTERESTS ON MAINLAND CHINA IN INDUSTRIES SUCH AS PROPERTY CONTAINER HANDLING AND CEMENT MR LI ALSO IS CONSIDERED POLITICALLY WELLCONNECTED IN CHINA 9402220103 940222 WHO'S NEWS VANGUARD GROUP SHUFFLES MANAGEMENT OF FUNDS IN A BID TO IMPROVE RETURNS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL VANGUARD GROUP IS SHUFFLING MANAGERS AT SOME OF ITS STOCK FUNDS TO TRY TO IMPROVE THE FUNDS' RETURNS VANGUARD A VALLEY FORGE PA MUTUALFUND COMPANY WITH MORE THAN 130 BILLION IN ASSETS SAID IT'S CUTTING BACK THE ROLE OF WELLINGTON MANAGEMENT CO AS COMANAGER OF VANGUARD EXPLORER AND VANGUARD/MORGAN GROWTH STOCK FUNDS THE MOVE REFLECTED DISSATISFACTION IN WELLINGTON'S PERFORMANCE IN BOTH FUNDS JOHN C BOGLE VANGUARD'S CHAIRMAN SAID IN AN INTERVIEW BOSTONBASED WELLINGTON WHICH MANAGES A NUMBER OF VANGUARD FUNDS UNDER CONTRACT DECIDED TO REPLACE FRANK V WISNESKI AT BOTH EXPLORER AND MORGAN GROWTH BY MARCH 31 KENNETH L ABRAMS 33 YEARS OLD WILL SUCCEED MR WISNESKI AT THE 902 MILLION EXPLORER FUND AND ROBERT D RANDS 51 WILL SUCCEED MR WISNESKI AT THE 11 BILLION MORGAN GROWTH FUND MR WISNESKI 47 WILL CONTINUE TO MANAGE MONEY AT WELLINGTON WELLINGTON CHANGED MANAGERS AT THE FUNDS BECAUSE IT GOT A MESSAGE FROM US THAT THEY SHOULD MAKE SOME CHANGES MR BOGLE SAID VANGUARD DECIDED TO REDUCE WELLINGTON'S OVERSIGHT OF MORGAN GROWTH'S PORTFOLIO TO 40 OF THE FUND'S ASSETS FROM 51 THREE OTHER MONEYMANAGEMENT FIRMS RUN THE REMAINDER OF MORGAN GROWTH'S ASSETS AND AT EXPLORER WELLINGTON WILL RUN 47 OF THE PORTFOLIO DOWN FROM 54 CURRENTLY GRANAHAN INVESTMENT MANAGEMENT WILL RUN 47 OF THE FUND UP FROM 40 THE REMAINING 6 OF THE ASSETS ARE IN CASH EARLIER THIS MONTH VANGUARD MOVED TO CLOSE TWO OF ITS INDUSTRYSECTOR FUNDS THAT HAD FAILED TO ATTRACT MUCH MONEY BECAUSE OF MEDIOCRE PERFORMANCE MORE OFTEN THAN MOST MUTUALFUND GROUPS VANGUARD CONTRACTS OUT THE MANAGEMENT OF ITS FUNDS TO UNAFFILIATED MONEY MANAGERS SUCH AS WELLINGTON VANGUARD SAYS THIS ALLOWS IT TO REPLACE MANAGERS OR EVEN WHOLE MANAGEMENT FIRMS MORE EASILY THAN IF IT EMPLOYED THESE FUND MANAGERS DIRECTLY IT ALSO ALLOWS VANGUARD TO NEGOTIATE LESSEXPENSIVE CONTRACTS WITH MANAGERS VANGUARD IS A MANAGER OF MANAGERS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BUT MANY OF VANGUARD'S STOCK FUNDS HAVE LAGGED BEHIND COMPETITORS' FUNDS IN PERFORMANCE OVER THE PAST THREE YEARS VANGUARD IS DEFINITELY FEELING COMPETITIVE PRESSURES ON THE EQUITY SIDE MR REKENTHALER SAYS MR BOGLE WHILE CALLING THE PERFORMANCE OF VANGUARD'S STOCK FUNDS SATISFACTORY ACKNOWLEDGES LAST YEAR WAS CERTAINLY NOT ONE OF OUR BEST VANGUARD HAS BEEN TINKERING WITH THE MANAGEMENT OF MORGAN GROWTH SINCE 1989 WHEN IT GAVE HALF THE FUND'S PORTFOLIO TO ANOTHER WELLINGTON EMPLOYEE MR WISNESKI HAD MANAGED THE ENTIRE FUND SINCE 1979 IN 1990 AND 1993 VANGUARD MADE OTHER MANAGEMENT SHIFTS AT THE FUND AS WELL GIVING A PORTION OF THE PORTFOLIO TO FIRMS BESIDES WELLINGTON THE TINKERING DOESN'T YET SEEM TO HAVE FIXED THE FUND'S PERFORMANCE DISPARITY AS THEY'VE ADDED MORE MANAGERS THE PERFORMANCE GAP BETWEEN THIS FUND AND THE AVERAGE GROWTH FUND HAS WIDENED SAYS DANIEL WIENER EDITOR OF INDEPENDENT ADVISER FOR VANGUARD INVESTORS A WATERTOWN MASS NEWSLETTER THAT TELLS ME SOMETHING IS WRONG VANGUARD WAS FORMED BY MR BOGLE IN 1974 SHORTLY AFTER HE WAS FIRED BY WELLINGTON TO ADMINISTER THE MUTUAL FUNDS THAT WELLINGTON MANAGED SEPARATELY THREE VANGUARD BOND FUNDS WILL SOON HAVE NEW MANAGERS FOLLOWING THE RETIREMENT OF PAUL SULLIVAN 51 ANOTHER WELLINGTON MONEY MANAGER PAUL D KAPLAN 47 WILL SUCCEED MR SULLIVAN AS MANAGER OF VANGUARD'S GINNIE MAE FUND AND THE BOND PORTION OF WELLESLEY INCOME FUND WHICH INVESTS IN STOCKS AND BONDS EARL E MCEVOY 45 WILL BE THE NEW MANAGER OF VANGUARD'S LONGTERM CORPORATE BOND FUND THE NEW MANAGERS WHO ALSO WORK FOR WELLINGTON WILL TAKE CHARGE BY MARCH 31 9402220102 940222 BUSINESS BRIEF CONCORD FABRICS INC AGREEMENT IS SET TO PURCHASE KATEM INTERNATIONAL STOCK CONCORD FABRICS INC SAID IT AGREED TO PURCHASE ALL THE CAPITAL STOCK OF KATEM INTERNATIONAL INC KATEM IS A CLOSELY HELD IMPORTER AND DISTRIBUTOR OF WOVEN AND KNITTED FABRICS CONCORD SAID JAN ROSE KATEM'S SELLING SHAREHOLDER WILL BE PRESIDENT OF THE COMPANY UNDER A FIVEYEAR EMPLOYMENT AGREEMENT CONCORD FABRICS NEW YORK SAID IT EXPECTS THE TRANSACTION TO CLOSE NEXT MONTH SUBJECT TO CERTAIN CONDITIONS KATEM'S SALES IN 1993 WERE ABOUT 25 MILLION 9402220101 940222 LEISURE & ARTS ROSEMARY CLOONEY IN CONTROL AND AT PEACE BY JOANNE KAUFMAN NEW YORK IT'S OPENING NIGHT AT RAINBOW & STARS AND ROSEMARY CLOONEY IS VISIBLY NERVOUS I WISH YOU COULD START WITH THE SECOND NIGHT SHE TELLS THE PACKED HOUSE AT THE TONY CABARET ATOP ROCKEFELLER CENTER BUT NOW THE FIRST NUMBER IS BEHIND HER SUNG IN THE DISTINCTIVE ALTO THAT RAPTUROUS CRITICS HAVE OFTEN COMPARED TO A CELLO AND NOW THE AUDIENCE IS COMFORTABLY NESTLED IN THE PALM OF HER HAND I WAS PERFORMING HERE LAST YEAR WHEN TONY BENNETT WON THE GRAMMY SAYS MS CLOONEY 65 YEARS OLD WHO WAS IN CONTENTION WITH MR BENNETT IN THE TRADITIONAL POP VOCAL PERFORMANCE CATEGORY FOR HER ALBUM GIRL SINGER HER FIRST NOMINATION IN 33 YEARS THIS YEAR MS CLOONEY IS DUKING IT OUT WITH MR BENNETT AGAIN AND WITH MICHAEL CRAWFORD DIANE SCHUUR AND BARBRA STREISAND I WISH THERE WERE A CATEGORY FOR PEOPLE OVER 65 WHO LIVE IN THE OHIO VALLEY SAYS MS CLOONEY MAKING NO SECRET OF HER BELIEF THAT MS STREISAND WOULD GO HOME WITH THE GOLD MAYBE NEXT YEAR CALLS OUT AN AUDIENCE MEMBER ENCOURAGINGLY GRAMMY OR NOT THIS YEAR IS PRETTY FINE WITH ROSEMARY CLOONEY EVEN CONSIDERING THE RECENT EARTHQUAKE THAT TOPPLED ONE OF THE CHIMNEYS AT HER BEVERLY HILLS HOME HERE IN NEW YORK ON THE WINDOWSILL OF HER VAPORIZERMISTED HOTEL BEDROOM IS AN AZALEA PLANT SENT BY A COUPLE OF FANS NAMED PAUL NEWMAN AND JOANNE WOODWARD THERE ON THE SOFA TABLE IS HER NEW RECORD STILL ON THE ROAD AND HERE SHE IS BACK SINGING IN MANHATTAN FOR THE SIXTH YEAR IN A ROW OF COURSE IT'S SPECIAL IN NEW YORK SAYS MS CLOONEY I THINK THE PLACE YOU HAVE YOUR FIRST SUCCESS IS THE PLACE YOU ALWAYS WANT TO COME BACK TO BORN IN MAYSVILLE KY THE TOWN NOW HAS A STREET NAMED AFTER HER MS CLOONEY WAS SHUTTLED BETWEEN HER ALCOHOLIC FATHER AND DISTANT MOTHER AND JUST AS OFTEN HER GRANDPARENTS THE CONSTANTS IN HER LIFE WERE HER BROTHER NICK AND HER SISTER AND SINGING PARTNER BETTY THE DUO GOT A TICKET OUT OF TOWN WHEN THEY WON A CONTEST SPONSORED BY A CINCINNATI RADIO STATION SUBSEQUENTLY JOINING TONY PASTOR'S BAND BETTY DECAMPED TO BE WITH A BOY BACK HOME AND ROSEMARY DECAMPED FOR COLUMBIA RECORDS WHERE MITCH MILLER THEN HEAD OF ARTISTS AND REPERTORY SENSED THAT AUDIENCES WOULD GO BIG FOR A SONG WRITTEN BY ARMENIANS WILLIAM SAROYAN AND ROSS BAGDASARIAN SUNG IN AN ITALIAN ACCENT BY AN IRISHGERMAN GIRL MS CLOONEY FINDING THE LYRICS OF COME ONA MY HOUSE A TAD TAWDRY SAYS SHE PROTESTED VIGOROUSLY BUT MR MILLER MADE IT CLEAR THAT ROSIE HAD BETTER SWING ALONG WITH MITCH I WOULD PROBABLY HAVE DONE COME ONA MY HOUSE' WILLINGLY SAYS MS CLOONEY OF THE 1951 NOVELTY NUMBER THAT SOLD MORE THAN A MILLION COPIES AND USHERED HER DOWN THE ROAD TO POP STARDOM HER HESITATION HAD LESS TO DO WITH SUGGESTIVE LYRICS ABOUT POMEGRANATES AND OTHER ENTICEMENTS THAN WITH THE LEVEL OF CONTROL EXERTED BY MR MILLER NOW COME ONA MY HOUSE IS A FIXTURE IN MS CLOONEY'S ACT INTRODUCED WITH GREAT GOOD HUMOR AND DELIVERED CON BRIO THERE COMES A TIME WHEN YOU REALIZE IT'S NOT YOUR MEMORY ANYMORE SHE SAYS IT'S SOMEONE ELSE'S IT'S WHAT THEY WERE DOING THAT SUMMER OF '51 THAT THEY WANT TO REMEMBER UNLIKE MANY PERFORMERS OF HER ERA MS CLOONEY DOES NOT HAVE THE SLIGHTEST WHIFF OF THEATRICALITY ABOUT HER NO CAMP SHE MAKES NO ATTEMPT TO EVOKE THE GLAMOUR OF A BYGONE TIME SHE IS AS SHE HAS ALWAYS BEEN A STUDY IN ECONOMY HONORING FIRST THE INTENT OF COMPOSER AND LYRICIST THEN ADDING THE FILLIP OF HER EXPERIENCE AND TASTE AND SENSIBILITIES MICROPHONE HELD EASILY IN HER RIGHT HAND GLASSES PERCHED HALFWAY DOWN HER NOSE MS CLOONEY IS A GRANDMOTHERLY FIGURE WHO SWINGS WHOSE DELIVERY IS AS CLOSE TO CONVERSATION AS FRANK SINATRA'S OR BILLIE HOLLIDAY'S IF THE NOTES SHE ONCE STRETCHED TO A FILAMENT ARE SHORTER IF THE VIBRATO A BIT TRIMMER THE VOICE STILL HAS AN AMPLE MEASURE OF SUN AND SEDUCTION SHE HAS A QUALITY THAT ONLY A FEW SINGERS HAVE SAYS ANOTHER RAINBOW & STARS SINGER MARY CLEERE HARAN THERE'S A DEEPNESS AND A WARMTH AND YET A LITTLE PING YOU KNOW IMMEDIATELY THAT IT'S ROSEMARY WELL NOT EVERYONE KNOWS IMMEDIATELY A LOT OF GUYS WHO WERE IN THE SECOND WORLD WAR COME UP TO ME AND SAY I DANCED WITH YOU IN THE PHILIPPINES' SAYS MS CLOONEY WHO DURING THE TIME IN QUESTION HADN'T YET SET FOOT OUT OF KENTUCKY PERHAPS THE FORMER SOLDIERS ARE THINKING OF FRANCES LANGFORD A LOT OF PEOPLE COME UP TO MS CLOONEY AND TELL HER HOW MUCH THEY LOVE HOW MUCH IS THAT DOGGIE IN THE WINDOW THAT FOLKS WAS PATTI PAGE I RECORDED SO MUCH CRAP THEY PROBABLY FIGURE IF IT'S A BAD SONG I MUST HAVE DONE IT SAYS MS CLOONEY WHO'S AS DIRECT IN CONVERSATION AS SHE IS IN SONG I'M GOING TO SING A SONG FROM THE '50S SO YOU'LL KNOW WHICH ONE I WAS SHE TELLS THE AUDIENCE AS SHE LEADS INTO HEY THERE HER ORIGINAL INTERPRETATION OF THE SONG AS A SELFHELP GUIDE FOR THE LOVELORN MIRRORED THAT OF JOHN RAITT WHO INTRODUCED THE SONG IN THE PAJAMA GAME BUT NOW SHE SAYS I'VE TAKEN MYSELF OUT OF IT NOW I VIEW IT AS TALKING TO A CHILD WHEN MS CLOONEY FIRST SANG WE'LL BE TOGETHER AGAIN SHE WAS IMAGINING THE END OF A LOVE AFFAIR SHE NOW SINGS IT THINKING OF THE FRIENDS WHO'VE DIED TOO YOUNG IT'S EASIER TO TAKE CHANCES NOW SHE SAYS I'VE BECOME MORE COMFORTABLE WITH MYSELF YOU START TO REALIZE IT ALL REALLY ISN'T THAT IMPORTANT THAT YOU'RE OK TWENTYFIVE YEARS AGO MS CLOONEY WASN'T OK A COLLAPSED MARRIAGE TO OSCARWINNING ACTOR JOSE FERRER A COLLAPSING AFFAIR WITH A YOUNGER MAN AND THE RIGORS OF RAISING FIVE CHILDREN BECAME TOO MUCH TO BEAR MS CLOONEY BEGAN ABUSING DRUGS SECONAL LIBRIUM AND MILTOWN AND AUDIENCES SHE CALLED THEM STUPID WHEN THEY ASKED FOR COME ONA MY HOUSE AND MADE SOME RECORDINGS SHE FINDS PAINFUL TO HEAR THE FULLCOURT CRACKUP CAME SHORTLY AFTER HER FRIEND BOBBY KENNEDY WAS ASSASSINATED AND MS CLOONEY DROVE UP A WINDING TWOLANE MOUNTAIN ROAD ON THE WRONG SIDE AN AMBULANCE AND STRETCHER AND SEVERAL YEARS OF INTENSIVE THERAPY WERE WAITING FOR HER AT THE END OF THE RIDE I KNEW I'D WORK AGAIN SHE SAYS I NEVER EVER DOUBTED THE FACT THAT I COULD MAKE A LIVING BUT I DIDN'T HAVE ANY IDEA THAT I WOULD WORK IN NICE PLACES AND I DIDN'T FOR A WHILE ADDS MS CLOONEY WHOSE GIGS AT THE TIME TOOK HER TO VARIOUS HOLIDAY INN LOUNGES AROUND SOUTHERN CALIFORNIA BUT I ALWAYS ENJOYED IT AND I WAS SINGING BETTER THAN BEFORE I'D BEEN ON SO MANY PRESCRIPTION DRUGS THAT I HAD LOST SIGHT OF THE TALENT THAT WAS THERE I COULDN'T FEEL INTONATION I WAS JUST KIND OF APART FROM IT I WAS UNDER WATER AND I HAVE THE RECORDS TO PROVE IT OFF DRUGS I COULD BEGIN TO GET BACK IN TOUCH WITH THE VOCAL PART AND THE MUSIC PART SHE'S BACK IN TOUCH AND NOW RATHER TO HER DISCOMFORT IS REGARDED AS A POP ICON AND SPOKEN OF IN THE SAME BREATH AS SINATRA AND ELLA FITZGERALD I FIND THAT HARD EVEN TO GET CLOSE TO SHE SAYS TRULY I THINK IF YOU SURVIVE LONG ENOUGH AND KEEP LIKING IT AND DO MORE THAN SING THE TOP 20 TUNES FROM THE 1950S IT WILL HAPPEN BUT I ALSO THINK I HAVE A BETTER HANDLE ON MY CAREER THAN I EVER DID AND A BETTER HANDLE ON MY LIFE WHATEVER TENTATIVENESS MS CLOONEY MAY HAVE ONCE DISPLAYED IS GONE SHE HAS NO PROBLEM PUBLICLY SCOLDING HER PIANIST/MUSICAL DIRECTOR FOR FAILING TO PUT HER MUSIC BACK IN CORRECT ORDER AFTER THE FIRST SET NO EMBARRASSMENT ABOUT KEEPING THE LYRICS WITHIN EASY REACH OTHERWISE I GET NERVOUS SHE SAYS SHE CHOOSES HER SONGS HER ARRANGEMENTS AND HER CLUB DATES TAKING CARE TO LEAVE AMPLE TIME IN THE SCHEDULE FOR HER SEVEN GRANDCHILDREN VISITS TO HER KENTUCKY VACATION HOME AND HER NEW PASSION COURT TV IS SHE AT PEACE MS CLOONEY PONDERS THE QUESTION FOR A MINUTE MOST OF THE TIME MOST OF THE TIME YEAH IT'S PRETTY GOOD IT'S PRETTY GOOD MS KAUFMAN IS A WRITER IN NEW YORK 9402220099 940222 REVIEW & OUTLOOK EDITORIAL ARKANSAS FORBEARANCE SO THE FEDERAL DEPOSIT INSURANCE CORP HAS DETERMINED THAT WEBB HUBBELL AND THE ROSE LAW FIRM VIOLATED NO CONFLICTOFINTEREST RULES WHEN THEY WORKED BOTH SIDES OF THE STREET REGARDING MADISON GUARANTY S&L OF LITTLE ROCK IN THE 1980S THE FDIC'S EIGHTPAGE OPINION MAKES SOME FACTS CLEAR ROSE HAD PREVIOUSLY REPRESENTED MADISON BEFORE STATE SECURITIES REGULATORS IN DOING SO IT HAD PRESENTED AUDITS PREPARED BY FROST & CO THEN ROSE AND MR HUBBELL SIGNED UP TO REPRESENT THE GOVERNMENT IN A SUIT AGAINST FROST OVER ITS MADISON AUDITS THERE IS NO RECORD THAT ROSE TOLD THE FDIC ABOUT ITS PREVIOUS REPRESENTATION OF MADISON MR HUBBELL AND ANOTHER ROSE PARTNER SAY THEY REMEMBER ORAL DISCLOSURES BUT THE FDIC PERSONNEL INVOLVED HAVE NO RECOLLECTION OF THEM THE FDIC VERDICT NO CONFLICT HERE WHEN ROSE OFFERED THE FROST AUDIT TO REGULATORS IN 1985 THE FDIC OPINION SAYS THERE IS NO INDICATION IN THE RECORDS OR BASED ON OUR REVIEW THAT THE FIRM DID ANYTHING MORE WITH RESPECT TO THE AUDIT IN QUESTION THAN TAKE IT AT FACE VALUE AND THERE IS NO EVIDENCE THAT THE FIRM HAD A CLOSE RELATIONSHIP WITH THE S&L TO JUDGE BY THE OPINION THE WHITEWATER PARTNERSHIP BETWEEN ROSE PARTNER HILLARY CLINTON AND MADISON OWNER JAMES MCDOUGAL ESCAPED THE NOTICE OF THE FDIC'S LEGAL EAGLES AND SINCE IN 1985 ROSE REPRESENTED THE S&L AND IN 1989 REPRESENTED THE CONSERVATOR WHO TOOK OVER THE S&L AFTER SEIZURE THE INTERESTS IN THE TWO CASES ARE NOT DIRECTLY ADVERSE SOMEHOW IT SEEMS TO US THE INTERESTS OF A CONSERVATOR TRYING TO CLEAN UP A MESS ARE PRETTY MUCH ADVERSE TO THE INTERESTS OF THE FOLKS RESPONSIBLE FOR MAKING THE MESS INDEED WHO NEEDS A LEGAL OPINION TO EXPLAIN WHAT IS CLEARLY A CONFLICT ON ITS FACE HAVING BEEN INVOLVED ITSELF ROSE MIGHT HAVE AN INTEREST IN BAILING OUT ITS FORMER BUSINESS ASSOCIATES ROSE IN FACT SETTLED THE SUIT AGAINST FROST IN 1991 FOR 1 MILLION ACCORDING TO SEVERAL REPORTS MUCH LESS THAN THE LIMIT OF FROST'S INSURANCE ALTERNATIVELY ROSE MIGHT HAVE AN INTEREST IN PROTECTING ITSELF BY BLAMING OTHER PARTIES FOR ALL MISTAKES IF THIS ISN'T A CONFLICT OF INTEREST WHAT IS BUT WE GUESS THAT ARKANSAS RULES NOW APPLY AT THE FDIC EVEN BEFORE THE ADVENT OF HILLARY BUDDY RICKI TIGERT SO IT ONLY SEEMS FAIR THAT EVERYONE CAUGHT UP IN THE S&L MAELSTROM OF THE 1980S GETS THE BENEFIT OF THESE NEW MORE FORGIVING ARKANSAS STANDARDS OF ETHICS A DIFFERENT SET OF RULES APPLIED TO LAW FIRMS THAT HAD REPRESENTED WAYWARD S&LS REMEMBER BEFORE FOBS STARTED TURNING UP IN HEADLINES CANDIDATE CLINTON PROCLAIMED IN HIS 1991 ANNOUNCEMENT SPEECH THAT WHEN THE RIPOFF ARTISTS LOOTED OUR S&LS THE PRESIDENT WAS SILENT IN A CLINTON ADMINISTRATION WHEN PEOPLE SELL THEIR COMPANIES AND THEIR WORKERS AND THEIR COUNTRY DOWN THE RIVER THEY'LL GET CALLED ON THE CARPET AND INDEED WORD OF A NEW RELAXED STANDARD HAS SPREAD SLOWLY THE DAY BEFORE THE FDIC EXONERATED ROSE OVER MADISON THE RESOLUTION TRUST CORP FILED A 400 MILLION SUIT AGAINST STREICH LANG A PROMINENT PHOENIX LAW FIRM THAT HAD REPRESENTED WESTERN SAVINGS AND LOAN ASSOCIATION SOME OF ITS PARTNERS THE RTC ALLEGED PERSONALLY PROFITED FROM THE FAKE SALE OF SOME OF ITS PROPERTIES THE FIRM'S MANAGING DIRECTOR POINTED OUT THAT THE RTC HAS SUED SOME OF THE FINEST LAW FIRMS ACROSS THE COUNTRY AND THAT THE PHOENIX SUIT IS CONSISTENT WITH THE GOVERNMENT LITIGATION STRATEGY REGARDING RTC TAKEOVERS THE GRANDDADDY OF THESE CASES CONCERNED KAYE SCHOLER A NEW YORK FIRM THAT REPRESENTED CHARLIE KEATING'S LINCOLN S&L IT WAS COERCED INTO A 41 MILLION SETTLEMENT IN 1991 WHEN THE GOVERNMENT FROZE ITS ASSETS THE KAYE SCHOLER CASE RAISED INTERESTING QUESTIONS IN HOW FAR A FIRM CAN GO IN MAKING REPRESENTATIONS FOR A CLIENT THE FIRM DOES NOT ITSELF BELIEVE REGULATORS BELIEVE THE FIRM LIED TO THEM BUT A DISCIPLINARY COMMITTEE OF THE NEW YORK BAR HAS SINCE LOOKED INTO THE CASE AND FOUND NO EVIDENCE THAT ANY KAYE SCHOLER PARTNER VIOLATED ETHICAL RULES YET THE FIRM WAS NOT ALLOWED TO DEFEND ITSELF JOHN FEERICK DEAN OF FORDHAM SCHOOL OF LAW SAYS THE ASSET SEIZURE WAS A GROSS ABUSE OF POWER THIS ACTION HE ADDS EFFECTIVELY TOOK AWAY THE ABILITY OF THE LAW FIRM TO DEFEND ITSELF AND FORCED IT INTO A SETTLEMENT NOW THAT THE FDIC HAS CLEARED THE ROSE FIRM AND WEBB HUBBELL WE HOPE IT PLANS TO GIVE KAYE SCHOLER ITS MONEY BACK OTHERWISE THE LESSON OF THE FDIC MEMO IS THAT ARKANSAS FORBEARANCE APPLIES ONLY TO FIRMS THAT INCLUDED THE ASSOCIATE ATTORNEY GENERAL AND THE FIRST LADY BUT THE SAME OLD FEROCIOUS RULES WILL APPLY TO ORDINARY MORTALS 9402220098 940222 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL OKSANA GRITSCHUK AND EVGENY PLATOV SKATED TO A ROCK BEAT AND LED A RUSSIAN 12 FINISH IN THE ICEDANCING COMPETITION FOILING JAYNE TORVILL AND CHRISTOPHER DEAN'S EFFORT TO RECLAIM OLYMPIC GOLD AFTER 10 YEARS MS GRITSCHUK AND MR PLATOV BEAT OUT COMPATRIOTS MAIA USOVA AND ALEKSANDR ZHULIN FOR THE GOLD MEDAL MS TORVILL AND MR CHRISTOPHER HAD TO SETTLE FOR THE BRONZE DANCING TO 1950S ROCKANDROLL INCLUDING ROCK AROUND THE CLOCK MS GRITSCHUK AND MR PLATOV DIDN'T THRILL THE AUDIENCE AS MUCH AS MS TORVILL AND MR DEAN'S TRICKFILLED BALLROOM DANCING NUMBER BUT THE JUDGES DIDN'T AGREE AND FIVE OF THEM PUT THE RUSSIANS FIRST ONLY THE BRITISH JUDGE PUT MS TORVILL AND MR DEAN IN FIRST PLACE PERNILLA WIBERG GAVE SWEDEN ITS FIRST MEDAL OF THE LILLEHAMMER WINTER GAMES IN THE WOMEN'S COMBINED MS WIBERG MOVED FROM FIFTH AFTER SUNDAY'S DOWNHILL PORTION OF THE COMBINED INTO FIRST AFTER THE MORNING SLALOM RUN THEN WITHSTOOD VRENI SCHNEIDER OF SWITZERLAND IN THE SECOND SLALOM RUN MS WIBERG'S TOTAL TIME OF 3 MINUTES 516 SECONDS WAS JUST 013 AHEAD OF MS SCHNEIDER THE BRONZE WENT TO ALENKA DOVZAN OF SLOVENIA IN 30664 KATJA SEIZINGER OF GERMANY THE OLYMPIC DOWNHILL GOLD MEDALIST AND FIRST AFTER SUNDAY'S COMBINED DOWNHILL STRADDLED A BLUE SLALOM GATE ABOUT HALFWAY DOWN AND WAS DISQUALIFIED PICABO STREET OF THE US STRUGGLED DOWN THE SLALOM RUNS FINISHING 10TH LYUBOV EGOROVA EQUALED THE CAREER WINTER OLYMPIC GOLDMEDAL RECORD TAKING RUSSIA FROM ONE SECOND BEHIND TO A 301SECOND VICTORY IN THE WOMEN'S 20KILOMETER CROSSCOUNTRY SKI RELAY IT WAS HER THIRD GOLD OF THE LILLEHAMMER GAMES AND SIXTH OVERALL MS EGOROVA WON THREE GOLDS IN ALBERTVILLE AND HAS WON A GOLD OR SILVER MEDAL IN ALL NINE OLYMPIC EVENTS SHE HAS ENTERED RUSSIA WON THE RELAY IN 57 MINUTES 125 SECONDS NORWAY TOOK THE SILVER IN 57426 ITALY WON THE BRONZE AUSTRIA'S EMESE HUNYADY WON THE WOMEN'S 1500 METERS AS GUNDA NIEMANN OF GERMANY HAD PROBLEMS AGAIN MS HUNYADY WON IN 2 MINUTES 219 SECONDS GIVING AUSTRIA ITS FIRST SPEEDSKATING GOLD EVER AND RUSSIAN SVETLANA FEDOTIKINA SKATING LATE IN THE PROGRAM SLIPPED INTO SECOND IN 20269 MS NIEMANN WHO HAD BEEN FAVORED TO WIN THREE GOLD MEDALS IN THESE GAMES SETTLED FOR A BRONZE MEDAL SHE FELL IN THE 3000 LAST WEEK IN WHICH MS HUNYADY WAS THE SILVER MEDALIST AMERICAN BONNIE BLAIR SKATED THE BEST 1500 OF HER CAREER BUT MISSED THE BRONZE BY 003 SECOND MS BLAIR HAS FOUR CAREER OLYMPIC GOLDS BUT THE 1500 HAS NOT BEEN A STRONG RACE FOR HER THE US EARNED A MEDALROUND BERTH BY BEATING ITALY 71 THE US WILL PLAY FINLAND TOMORROW SLOVAKIA BEAT FRANCE 62 TO SEND IT INTO A QUARTERFINAL MEETING WITH RUSSIA CANADA WHICH BEAT SWEDEN 32 WILL PLAY THE CZECH REPUBLIC SWEDEN WILL PLAY GERMANY UNHERALDED SKIERS FROM BELARUS AND AUSTRALIA LED QUALIFYING FOR THE FREESTYLE AERIAL COMPETITION ALEXEI PARFENKOV OF BELARUS MADE TWO CLEAN THOUGH CONSERVATIVE JUMPS AND ACCUMULATED 22849 POINTS IN THE MEN'S COMPETITION CANADIANS PHILIPPE LAROCHE AND LLOYD LANGLOIS FOLLOWED WITH 22265 AND 22161 IN THE WOMEN'S COMPETITION KIRSTIE MARSHALL OF AUSTRALIA LANDED BOTH OF HER JUMPS WELL TO ACCUMULATE 16612 POINTS SHE WAS FOLLOWED BY NORWAY'S HILDE SYNNOVE LID WITH 15870 9402220097 940222 LEISURE & ARTS TOP 10 SINGLES/ALBUMS DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9402220096 940222 JEFFERSON SMURFIT PLANS PUBLIC OFFERING FOUR YEARS AFTER LEVERAGED BUYOUT ST LOUIS THE HOLDING COMPANY THAT OWNS JEFFERSON SMURFIT CORP SAID THE BIG PAPERBOARD AND PACKAGING CONCERN TAKEN PRIVATE IN A LEVERAGED TRANSACTION MORE THAN FOUR YEARS AGO PLANS TO GO PUBLIC THROUGH AN INITIAL OFFERING JEFFERSON SMURFIT CORP IS 50OWNED BY IRELAND'S JEFFERSON SMURFIT GROUP PLC THE REMAINDER IS HELD BY MORGAN STANLEY LEVERAGED EQUITY FUND II LP A LIMITED PARTNERSHIP FORMED BY MORGAN STANLEY & CO THE TWO BOUGHT OUT THE MINORITY PUBLIC STAKE IN THE USBASED COMPANY IN 1989 THE HOLDING COMPANY THROUGH WHICH THEY OWN JEFFERSON SMURFIT CORP SIBV/MS HOLDINGS INC SAID IT HAD FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING A PLANNED OFFERING OF 146 MILLION COMMON SHARES THE UNDERWRITERS MORGAN STANLEY KIDDER PEABODY & CO AND SALOMON BROTHERS FUND INC WILL BE GRANTED AN OVERALLOTMENT OPTION OF AN ADDITIONAL 22 MILLION SHARES THE HOLDING COMPANY FAILED TO SAY AT WHAT PRICE IT EXPECTS TO OFFER THE SHARES HOWEVER OR WHAT STAKE IN THE COMPANY THE PLANNED OFFERING WOULD REPRESENT THE DISCLOSURE WAS MADE LATE FRIDAY AT A TIME WHEN COMPANY OFFICIALS COULDN'T BE REACHED IN ADDITION TO THE EQUITY OFFERING A SUBSIDIARY OF JEFFERSON SMURFIT CORP'S IRISH PARENT HAS AGREED TO PURCHASE 100 MILLION WORTH OF COMMON SHARES THE ST LOUISBASED HOLDING COMPANY SAID THE OFFERING APPEARS TO BE PART OF A MAJOR RECAPITALIZATION EFFORT FOR JEFFERSON SMURFIT CORP THE HOLDING COMPANY SIBV/MS ALSO SAID JEFFERSON SMURFIT CORP'S CONTAINER CORP OF AMERICA UNIT INTENDS TO FILE WITH THE SEC A REGISTRATION STATEMENT COVERING A CONCURRENT PUBLIC OFFERING OF APPROXIMATELY 500 MILLION SERIES A SENIOR NOTES DUE 2004 AND 100 MILLION SERIES B SENIOR NOTES DUE 2002 BOTH SERIES OF NOTES WILL BE UNSECURED OBLIGATIONS OF CONTAINER CORP UNCONDITIONALLY GUARANTEED ON A SENIOR BASIS BY JEFFERSON SMURFIT CORP 9402220095 940222 WHAT'S NEWS BUSINESS AND FINANCE CORPORATE PROFITS TURNED IN ANOTHER SHARP RISE IN THE FOURTH QUARTER NOURISHED BY STRONG ECONOMIC GROWTH AND CONTINUED COSTCUTTING 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 INCREASE IN THE 1993 THIRD QUARTER HONDA SAID IT WILL UNWIND ITS CROSSSHAREHOLDING ARRANGEMENT WITH ROVER A BLOW TO BMW JUST WEEKS AFTER IT ACQUIRED A MAJORITY STAKE IN ROVER MACY IS TALKING WITH GE CAPITAL AND FIDELITY ABOUT A PLAN THAT WOULD ALLOW IT TO EMERGE FROM BANKRUPTCY PROCEEDINGS WITHIN A FEW MONTHS BOND INVESTORS' INFLATIONARY FEARS ARE GROWING AND RATHER THAN INSPIRING CONFIDENCE THE FED'S RECENT RATE BOOST HAS MANY WONDERING WHEN THE NEXT RATE INCREASE WILL BE ON FRIDAY THE 30YEAR TREASURY BOND'S PRICE SANK OVER A POINT ITS YIELD ROSE TO 662 SOME STOCK ANALYSTS PROCLAIM A STOCKMARKET CORRECTION HAS BEGUN CITING THE RECENT RISE IN INTEREST RATES AND FEARS THAT FURTHER INCREASES ARE NEAR STILL OTHERS POINT TO THE HEALTH OF THE ECONOMY AND SAY A CORRECTION IS FAR OFF THE DOW JONES INDUSTRIALS TUMBLED 3518 FRIDAY TO 388746 A WHITE HOUSE OFFICIAL SOUGHT TO ASSURE ASIAN TRADING PARTNERS THAT US TENSION WITH JAPAN WON'T AFFECT THEM CHRYSLER GAVE ITS TOP 200 EXECUTIVES 1993 BONUSES THAT AMOUNT TO ABOUT 100 OF THEIR ANNUAL SALARY THE BONUSES ARE THE HIGHEST CHRYSLER HAS EVER PAID ONE SENIOR EXECUTIVE SAID THE OFFICE OF THRIFT SUPERVISION DENIED FOUR THRIFTS' APPLICATIONS TO SWITCH TO STATECHARTERED MUTUALSAVINGS BANKS SAYING THEY HAVEN'T ADEQUATELY SERVED THEIR COMMUNITIES COMPAQ COMPUTER WON WHAT IS BELIEVED TO BE THE FIRST JURY VERDICT IN A CASE ATTEMPTING TO LINK COMPUTER KEYBOARDS WITH CRIPPLING WRIST INJURIES A BID FOR CONTROL OF AMERICA WEST WAS MADE BY A GROUP LED BY SOME OF THE INVESTORS WHO ENGINEERED CONTINENTAL AIRLINES' EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS MARTIN MARIETTA SAID IT WON'T PURCHASE GENERAL DYNAMICS' SPACELAUNCH BUSINESS IF THE US DOESN'T AGREE TO PAY MORE FOR THOSE SERVICES CADILLAC FAIRVIEW IS SEEKING TO RESTRUCTURE 748 MILLION OF DEBT AS THE VALUE OF ITS PROPERTY HOLDINGS ERODES DELL IS EXPECTED TO ANNOUNCE A REENTRY INTO THE NOTEBOOK BUSINESS BY SELLING PCS MADE BY AST RESEARCH GOLDMAN SACHS SAID ITS FORMER SYNDICATE MANAGER IS RETURNING AND IT IS REORGANIZING ITS EUROBOND TEAM VANGUARD GROUP IS SHUFFLING MANAGERS AT SOME OF ITS STOCK MUTUAL FUNDS TO TRY TO IMPROVE THE FUNDS' RETURNS BONDS LEHMAN BROTHERS TREASURY INDEX 543434 OFF 4659 COMMODITIES OIL 1421 A BARREL OFF 2 CENTS DOW JONES FUTURES INDEX 14631 OFF 085 SPOT INDEX 13098 OFF 013 DOLLAR 10460 YEN UP050 17140 MARKS OFF 00093 9402220094 940222 MARKETSCAN FOOD FIRMS COOK UP MORE ORIENTAL FARE BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL IF HORMEL FOODS CORP HAS ITS WAY AMERICANS WILL SOON BE FEASTING ON SWEET AND SOUR SPAM AND TERIYAKI MEAT LOAF NOW THAT ITALIAN AND MEXICAN FOODS HAVE BECOME AS COMMON ON AMERICA'S KITCHEN TABLES AS MEAT AND POTATOES HORMEL AND OTHER MARKETERS ARE HOPING THEIR VERSIONS OF ASIAN CUISINE WILL SPUR THE NEXT ETHNICFOOD CRAZE WE THINK ORIENTAL IS THE NEXT DIRECTION SAYS ALLAN KREJCI A HORMEL SPOKESMAN WE WANT TO BE A PART OF THAT MARKET HORMEL WHOSE MAINSTAY PRODUCTS INCLUDE SPAM AND DINTY MOORE STEW ACQUIRED A MAKER OF ASIAN SAUCES CALLED HOUSE OF TSANG CO IN 1992 AND IS NOW TEST MARKETING FOUR COOKING SAUCES WITH SUCH INGREDIENTS AS PINEAPPLE AND WATER CHESTNUTS A NEW TELEVISION COMMERCIAL AIMS FOR THE MASS MARKET BY SHOWING THREE SMILING AMERICANS OF SWEDISH IRISH AND HISPANIC ORIGIN PROUDLY DISPLAYING THEIR CULINARY MASTERPIECES SZECHUAN SHRIMP BEEF TERIYAKI AND SWEET AND SOUR CHICKEN ALL MADE WITH HOUSE OF TSANG SAUCES MEANTIME CONAGRA INC'S LA CHOY BRAND GENERAL MILLS INC'S BETTY CROCKER DIVISION AND MARS INC'S UNCLE BEN'S UNIT ALSO HAVE CREATED ASIAN COOKING SAUCES THE AIM IS TO CREATE PRODUCTS WITH AN ASIAN FLAVOR AND IMAGE BUT WITH BLAND ENOUGH TASTE TO SELL COAST TO COAST MEXICAN FOODS QUICKLY BECAME MAINSTREAM AND MANY BIG FOOD MARKETERS JUMPED ON THAT BANDWAGON EVEN ALLAMERICAN WONDER BREAD HAS A LINE OF TORTILLAS BUT ORIENTAL FLAVORS MAY BE A TOUGHER SELL ALTHOUGH ORIENTAL RESTAURANTS ARE EVERYWHERE MANY PEOPLE SAY THEY ARE RELUCTANT TO COOK THE FOOD AT HOME BECAUSE THEY CONSIDER MANY ASIAN DISHES TOO DIFFICULT AND TIME CONSUMING MARKETERS ALSO HAVE FOUND IT CHALLENGING TO COOK UP A QUASIORIENTAL TASTE WITH MASS APPEAL WHAT'S MORE IT DOESN'T HELP THAT RECENT NUTRITION STUDIES FOUND HIGH LEVELS OF FAT IN MANY CHINESE DISHES SO FAR SOME OF THE NEW ASIAN PRODUCTS ARE GROWING NICELY SUPERMARKET SALES OF HORMEL'S HOUSE OF TSANG SAUCES ROSE 276 TO 46 MILLION IN THE 52 WEEKS ENDED JAN 2 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE CONAGRA'S LA CHOY BRAND WHICH STARTED SELLING FOUR KINDS OF ORIENTAL SAUCES IN JARS LAST SUMMER SAW SALES OF ALL ITS ORIENTAL SAUCES RISE 102 TO 323 MILLION BUT OVERALL SALES OF ORIENTAL PRODUCTS ARE SLUGGISH TOTAL SALES OF ALL ORIENTAL SAUCES AND MARINADES ROSE ONLY 1 TO 1557 MILLION IN THE 52WEEK PERIOD A MUCH SLOWER GROWTH THAN MEXICAN SAUCES WHOSE SALES ROSE A HEALTHY 86 TO 6857 MILLION IN A TWOWEEK SURVEY BY NATIONAL EATING TRENDS WHICH TRACKS PEOPLE'S HOMEDINING HABITS ONLY 8 OF AMERICANS SAID THEY ATE ORIENTAL FOOD AT HOME COMPARED WITH THE 43 WHO SAID THEY HAD ITALIAN FOOD AND THE 25 WHO ATE MEXICAN A THIRD OF THE ORIENTAL MEALS CONSUMED AT HOME WERE TAKEOUT REFLECTING THE PERCEPTION THAT COOKING ASIAN FOOD FOR EXAMPLE CHOPPING ALL THOSE VEGETABLES IS TOO TAXING MARKETERS ARE TRYING TO LURE RELUCTANT COOKS BY MAKING THE SAUCES SOUND SIMPLE AND FAMILIAR UNILEVER GROUP'S POPULAR RAGU CHICKEN TONIGHT SAUCES FEATURE A NEW SWEET AND SOUR VARIETY THAT CONTAINS PINEAPPLES AND BELL PEPPERS AND LA CHOY'S SPICY SZECHUAN SAUCE ADVERTISES ITSELF AS A 10MINUTE MEAL BECAUSE IT ALREADY CONTAINS CHUNKS OF BABY CORN BAMBOO SHOOTS AND MUSHROOMS JUST ADD CHICKEN OR BEEF WHICH MOST AMERICANS WERE GOING TO HAVE FOR DINNER ANYWAY AND IT TASTES LIKE SOMETHING THAT PEOPLE HAVE TASTED IN A RESTAURANT PROMISES KAY CARPENTER A SPOKESWOMAN FOR CONAGRA'S HUNTWESSON INC WHICH MARKETS LA CHOY PRODUCTS THAT MIGHT BE A GOOD PITCH FOR CONSUMERS LIKE CONNIE KULLY THE PARTTIME ANTIQUE DEALER AND MOTHER OF FOUR IN OMAHA NEB SAYS SHE OWNS AN ELECTRIC WOK AND KEEPS SOY SAUCE IN HER KITCHEN CABINET BUT MS KULLY SAYS SHE TENDS TO EAT CHINESE FOOD AT RESTAURANTS BECAUSE SHE CAN NEVER GET AS AUTHENTIC A FLAVOR AS SHE WANTS WHEN SHE COOKS AT HOME I'LL CONSIDER USING IT IF IT'S GOING TO GIVE ME THE SAME AUTHENTIC TASTE AS THE IMPERIAL PALACE HER NEIGHBORHOOD CHINESE RESTAURANT SAYS MS KULLY STILL SHE SAYS SHE'S WORRIED THESE DAYS ABOUT THE AMOUNT OF FAT IN CHINESE DISHES LABELS ON THE LA CHOY SAUCES CLAIM THEY CONTAIN LITTLE FAT BUT HOW HEALTHFUL ARE THEY NUTRITIONISTS AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A CONSUMER ADVOCACY GROUP BASED IN WASHINGTON DC RECENTLY ANALYZED A HALFCUP SERVING OF LA CHOY'S SPICY SZECHUAN SAUCE AND FOUND THE SYRUPY GOOP HIGH IN SUGAR AND SODIUM ACCORDING TO THE GROUP'S NEWSLETTER CREATING A REASONABLY AUTHENTIC ORIENTAL SAUCE THAT PLEASES EVERYONE IS TRICKY BECAUSE TASTES DIFFER ACROSS THE US WE REALIZED THAT WE WERE NEVER GOING TO COME UP WITH ONE SAUCE SAYS A SPOKESWOMAN FOR GENERAL MILLS WHICH RUNS 13 CHINESE RESTAURANTS CALLED CHINA COAST IN FOUR STATES THE CHAIN ALTERS FLAVORS AND MENUS DEPENDING ON THE REGION CUSTOMERS IN OHIO FOR EXAMPLE ARE PARTICULARLY PARTIAL TO FRIED CHICKEN ANOTHER FOOD MARKETER NOTES THAT NEW ENGLANDERS LIKE THEIR FRIED RICE A DARKER BROWN COLOR AND THEIR EGG DROP SOUP MORE YELLOW THAN PEOPLE IN OTHER AREAS DAVID TSANG WHO CREATES THE ASIAN SAUCES FOR HORMEL SAYS HE IS DEALING WITH THIS PROBLEM IN A SCIENTIFIC MANNER MR TSANG A FORMER ENGINEER SAYS HE PLUGS ABOUT 50 CHINESE COOKBOOK RECIPES INTO HIS COMPUTER TO COME UP WITH THE COMMON DENOMINATOR OR BASIC FLAVOR IN ALL THE SAUCES I DO EVERYTHING VERY METHODICALLY HE SAYS SOME MARKETERS THINK THE KEY TO SUCCESS IN AMERICA IS NOT TO BE TOO ASIAN BETTY CROCKER WHOSE RECIPE SAUCES INCLUDE A SWEET AND SOUR FLAVOR SAYS IT IS TRYING TO RAISE CONSUMER INTEREST WITH CREATIVE MENUS THAT TAKE ORIENTAL FOOD BEYOND ITS ETHNIC BOUNDARIES IT RECENTLY PUBLISHED A COOKING MAGAZINE SUGGESTING SUCH DISHES AS ORIENTAL TACO SALAD AND ORANGEGINGER SALSA LA CHOY MEANWHILE SUGGESTS CONSUMERS MIX AND MATCH AMONG MORE MAINSTREAM AMERICAN FOODS A BIT OF SWEET AND SOUR SAUCE GIVES A WHOLE NEW TWIST TO A MEAT LOAF SAYS HUNTWESSON'S MS CARPENTER OR A HAMBURGER OR POT ROAST AND PERHAPS EVEN SPAM 9402220093 940222 BUSINESS BRIEF TYSON FOODS IS READY TO DECIDE SOON ON WHETHER TO PURSUE WLR FOODS INC SCOTTSDALE ARIZ TYSON FOODS INC SAID IT WILL DECIDE SHORTLY WHETHER TO ATTEMPT A HOSTILE TAKEOVER OF WLR FOODS INC WHICH HAS REJECTED THE POULTRY CONCERN'S 330 MILLION OFFER ASKED IF TYSON MIGHT SWEETEN ITS ALLCASH BID TO ENTER THE TURKEYPROCESSING BUSINESS DON TYSON CHAIRMAN REPLIED NOPE MR TYSON AND OTHER EXECUTIVES OF THE NATION'S LARGEST CHICKEN PROCESSOR INDICATED IN AN INTERVIEW THEY WERE SURPRISED BY WLR'S REJECTION WE CAME WITH A FAIR PRICE FAIR FOR OUR SHAREHOLDERS AND THEIRS SAID GERALD JOHNSTON EXECUTIVE VICE PRESIDENT FINANCE TYSON FOODS CHARACTERIZES ITS CURRENT FISCAL SECOND QUARTER AS EXTREMELY TOUGH BECAUSE OF AN ADDITIONAL 20 MILLION IN GRAIN COSTS FOLLOWING A SIMILAR INCREASE IN THE FISCAL FIRST QUARTER AS A RESULT MR JOHNSTON SAID HE EXPECTS CURRENTQUARTER EARNINGS TO BE ABOUT 22 CENTS A SHARE VS 31 CENTS A YEAR AGO FOR THE FULL YEAR WHICH ENDS IN OCTOBER MESSRS TYSON AND JOHNSTON SAID THEY WERE COMFORTABLE WITH PERSHARE EARNINGS ESTIMATES IN THE 130 RANGE LAST YEAR TYSON EARNED 122 WE'LL DO DOUBLEDIGIT INCREASED SALES FOR THE FULL YEAR MR TYSON SAID IN FISCAL 1993 TYSON REPORTED SALES OF 47 BILLION A DOUBLEDIGIT INCREASE WOULD PUT THE SPRINGDALE ARKBASED COMPANY OVER THE 5 BILLION MARK OF THE WLR BID TYSON EXECUTIVES POINTED OUT THAT TRADING VOLUME IN WLR SHARES HAS INCREASED RECENTLY INDICATING APPARENT ARBITRAGER INTEREST MR JOHNSTON SAID HE INTERPRETS WLR'S RECENT IMPLEMENTATION OF A POISON PILL AND GOLDEN PARACHUTES AS BETRAYING MANAGEMENT'S CONFIDENCE THAT IT HAS THE VOTES TO DEFEAT A HOSTILE TAKEOVER DONALD E WRAY TYSON CHIEF OPERATING OFFICER SAID THAT EVEN IF WLR SLIPS AWAY TYSON COULD ADD TURKEY PROCESSING BY CONTRACTING WITH GROWERS AND SLAUGHTERERS THAT'S STILL AN OPTION HE SAID TWO PREVIOUS EFFORTS TO ENTER THE FIELD PROVED UNSUCCESSFUL TYSON IS TEST MARKETING FRESH BRANDED PORK CUTS IN MARSH SUPERMARKETS IN INDIANA MR WRAY SAID THE TEST WHICH COULD RUN BETWEEN THREE AND SIX MONTHS WILL HELP DETERMINE TYSON'S FUTURE FOCUS IN THE PORK INDUSTRY THE COMPANY PROCESSES ABOUT 6000 HOGS DAILY AT MARSHALL MO 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 9402220092 940222 POLITICS & POLICY HURT BY ETHICS PROBE ROSTENKOWSKI SCRAMBLES FOR VOTES IN BID TO SURVIVE MARCH 15 PRIMARY BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO BACK IN WASHINGTON DESPITE A LONGRUNNING ETHICS PROBE DAN ROSTENKOWSKI STILL REIGNS AS ONE OF THE CAPITAL'S PRINCES THE MIGHTY MR CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE BUT HERE AT HOME WHERE HE FIGHTS FOR HIS POLITICAL LIFE IT'S DIFFERENT I'M RAW MEAT HE BROODS AT THE END OF A RECENT CAMPAIGN DAY FOUR DEMOCRATS VIE DAILY FOR THE KILL THAT WOULD END THE 66YEAROLD MR ROSTENKOWSKI'S CONGRESSIONAL CAREER WHICH SPANS 36 YEARS REPORTERS PRESS FOR COMMENT ABOUT HIS LEGAL PROBLEMS NOT ABOUT THE NATIONAL PROBLEMS SUCH AS HEALTH CARE THE BUDGET AND WELFARE REFORM OVER WHICH HE HOLDS SWAY IN CONGRESS WORST OF ALL EARLY POLLS SHOWED THAT JUST ONE IN FOUR LIKELY DEMOCRATIC VOTERS SUPPORTED HIS REELECTION IN A REAL SENSE IT'S A TRIBUTE TO THE MAN AND HIS STATURE THAT HE'S GIVEN ANY CHANCE AT ALL OF WINNING THE MARCH 15 PRIMARY LAST WEEK WITH JUST A MONTH BEFORE ELECTION DAY THE CANDIDATE AND HIS CAMPAIGN FINALLY RUMBLED TO LIFE A LATE START THAT ITSELF BETRAYS THE TOLL THE NEARLY TWOYEAROLD GRANDJURY INVESTIGATION HAS TAKEN ON MR ROSTENKOWSKI'S SPIRIT AND HIS VAUNTED POLITICAL FINANCES HOME DURING A WEEKLONG RECESS OF CONGRESS HE MADE A VARIETY OF APPEARANCES IN BENIGN SETTINGS AN ORPHANAGE FOR EXAMPLE THE VISITS WERE DESIGNED TO TRUMPET HIS ACCOMPLISHMENTS AND HIS CAMPAIGN'S THEME LEADERSHIP WE CAN'T AFFORD TO LOSE BY WE THE CAMPAIGN DOESN'T MEAN JUST CHICAGO OR MR ROSTENKOWSKI'S MULTIETHNIC DISTRICT THAT SPRAWLS FROM THE AFFLUENT LAKEFRONT HIGHRISES WESTWARD TO THE WORKINGCLASS SUBURBS GIVEN THE RELIANCE IN ILLINOIS ON THE DEMOCRAT'S CLOUT EVEN REPUBLICAN GOV JIM EDGAR HAS STOPPED JUST SHORT OF AN ENDORSEMENT AND PRESIDENT CLINTON HAS VOLUNTEERED TO CAMPAIGN PERHAPS NEXT WEEK TO PLEAD THE IMPORTANCE OF MR ROSTENKOWSKI'S SURVIVAL TO THE NATION AND TO MR CLINTON'S OWN AMBITIOUS PLANS FOR HEALTH AND WELFARE REFORM YET FOR ALL THE KUDOS FROM ON HIGH THIS CHAIRMAN WHO'S USUALLY THE OBJECT OF SOLICITATIONS FROM CEOS TO PRESIDENTS NOW MUST ASK VOTERS FOR THEIR FAVOR I NEED YOUR HELP HE HUMBLY TELLS AN AUDIENCE OF ABOUT 70 FELLOW POLISHAMERICANS AS HE RECEIVES THE ENDORSEMENT OF THE NEWSPAPER FOR THE POLISH NATIONAL ALLIANCE THEY APPLAUD IF TEPIDLY AND ONE WOMAN GIVES HIM A STANDING OVATION I DON'T FIND IT A PROBLEM TO ENDORSE CONGRESSMAN ROSTENKOWSKI I FIND IT A PRIVILEGE DECLARES THE GROUP'S PRESIDENT EDWARD MOSKAL THE LAWMAKER MR MOSKAL CONTINUES SERVES IN A FINE MANNER A VERY PROFESSIONAL MANNER REGARDLESS OF THE OTHER SIDE THAT PERHAPS DOESN'T FIND HIM AS FINE AS WE FIND HIM DEFEAT NEXT MONTH WOULD MAKE MR ROSTENKOWSKI A LAMEDUCK CHAIRMAN FOR THE REST OF THE YEAR LAWMAKERS IN BOTH PARTIES SAY HE COULD STILL WIELD LEVERAGE THANKS TO HIS PERSONAL RELATIONSHIPS WITH OTHER MEMBERS AND HIS LEGISLATIVE MASTERY THEIR ONLY QUESTION IS WHETHER HE WOULD WANT TO OR WHETHER HE WOULD BE TOO TRAUMATIZED BY VOTERS' REJECTION THE CONGRESSMAN HAS AN ANSWER I'M GOING TO BE THE SAME PERSON WITH ALL THE PROBLEMS I'VE HAD YOU'D EXPECT I COULDN'T DO THE BUDGET BUT I DID I'M GOING TO CONTINUE TO DO WHAT I HAVE TO DO I BELIEVE IN BILL CLINTON BUT EVEN IF HE EKES OUT A VICTORY HE WON'T BE IN THE CLEAR HE'S VULNERABLE AS WELL TO A REPUBLICAN CHALLENGER IN NOVEMBER WORST OF ALL HE COULD STILL BE INDICTED UNDER HOUSE DEMOCRATS' RULES HE WOULD THEN HAVE TO STEP ASIDE UNTIL ABSOLVED THAT COULD STRIP HIM OF HIS STRONGEST ARGUMENT FOR REELECTION THE POWER THAT COMES FROM HIS POSITION AND LEAVE THE PIVOTAL WAYS AND MEANS PANEL IN CHAOS WITHOUT HIS CONSENSUSBUILDING SAVVY JUST AS IT IS TURNING TO THE HEALTH AND WELFARE ISSUES SO CRUCIAL TO MR CLINTON'S OWN FUTURE THE ETHICS INVESTIGATION SHADOWS EVERY EFFORT OF THE CAMPAIGN TO GENERATE GOOD NEWS A DAY AFTER THE CHICAGO TRIBUNE ENDORSED MR ROSTENKOWSKI LAST WEEK THE MEDIA REPORTED THAT A FORMER AIDE ALLEGED TO HAVE BEEN A GHOST EMPLOYEE TESTIFED BEFORE THE GRAND JURY IN WASHINGTON THERE'S IRONY IN THE PROUD CHAIRMAN'S PREDICAMENT TWO YEARS AGO HE SOUGHT REELECTION PARTLY TO DEFY EXPECTATIONS THAT HE'D RETIRE TO POCKET HIS 1 MILLIONPLUS CAMPAIGN SURPLUS AFTER 1992 DEPARTING HOUSE MEMBERS COULD NO LONGER KEEP SUCH CASH FOR PERSONAL USE MR ROSTENKOWSKI SAID THEN THAT HE DIDN'T WANT HIS EPITAPH TO READ HE TOOK THE MONEY AND RAN BUT WITHIN WEEKS OF HIS 1992 PRIMARY VICTORY NEWS BROKE OF THE CRIMINAL GRANDJURY PROBE THAT CONTINUES TODAY FIRST CALLED TO INVESTIGATE ALLEGED SWAPS OF OFFICIAL STAMPS FOR CASH AT THE HOUSE POST OFFICE THE NET HAS APPARENTLY WIDENED TO ENVELOP MR ROSTENKOWSKI'S CONGRESSIONAL AND CAMPAIGN SPENDING SINCE HE WAS ELECTED IN 1958 IN THE PROCESS LEAKS AND PARALLEL MEDIA DIGGING HAVE TARRED HIS REPUTATION FAR WORSE THAN THE RETIREMENT WOULD HAVE MR ROSTENKOWSKI ACKNOWLEDGES HE'S NOT SLEEPING WELL THESE DAYS AND IT SHOWS THE BULLDOG FACE IS MORE LINED STRANGERS STILL APPROACH TO WARMLY PUMP HIS HANDS BUT IF ACQUAINTANCES LOOK AWAY HE WONDERS AT TIMES IF IT'S INADVERTANT FOR A PROUD PERSON TO CAMPAIGN IN AN ENVIRONMENT IN WHICH HE'S HIT WITH CHARGES HE CAN'T REALLY ANSWER TO BE AN OBJECT OF SUSPICION IS VERY DIFFICULT AND VERY DISPIRITING SAYS DAVID AXELROD HIS MEDIA ADVISER THE CONGRESSMAN'S HOPES FOR SURVIVAL LARGELY HINGE ON THE SHEER NUMBER OF FOES HE'S DRAWN IN FACT 53YEAROLD FORMER CITY ALDERMAN DICK SIMPSON BACK AFTER LOSING WITH 43 IN 1992 ISN'T ALONE IN SUGGESTING THAT STATE SEN JOHN CULLERTON 45 AND ALDERMAN MIKE WOJCIK 41 JOINED THE RACE WITH THE DALEY MACHINE'S BLESSING TO SPLINTER THE ANTIROSTENKOWSKI VOTE SO THAT THE LAWMAKER CAN WIN WITH AS LITTLE AS A THIRD OF THE BALLOTS THE FOURTH CHALLENGER JOHN MCCARTHY IS A FOLLOWER OF FRINGE POLITICIAN LYNDON LAROUCHE BUT HIS IRISH NAME WILL DRAW SOME VOTES THERE'S ALWAYS SAFETY IN NUMBERS MR ROSTENKOWSKI SAYS MR SIMPSON IS ONCE AGAIN WAGING A FRONTAL ATTACK AT OUR LADY OF GRACE CATHOLIC SCHOOL ON THE NORTHWEST SIDE TWO DOZEN ELDERLY WOMEN WHO HAVE GATHERED FOR BINGO NOD AS MR SIMPSON TELLS HOW THE INCUMBENT IS THE VERY SYMBOL OF CORRUPTION BUT THE EMERGENCE OF MR CULLERTON WHO STRESSES GUN CONTROL AND EDUCATION AND LARGELY LEAVES OTHERS TO BLOODY MR ROSTENKOWSKI IS CAUSING MR SIMPSON TO SHIFT SOME OF HIS FIRE HE'S A LITTLE ROSTENKOWSKI MR SIMPSON SNIPES OF MR CULLERTON'S LINKS TO UNSPECIFIED BACKROOM DEALS IN THE STATE SENATE AND IN HIS LAW FIRM'S BOND BUSINESS MR CULLERTON IN TURN DISMISSIVELY INVITES MR SIMPSON TO DROP OUT OF THE RACE MEANWHILE THE INCUMBENT CLINGS TO OTHER ADVANTAGES HE HAD 11 MILLION WHEN THE YEAR BEGAN THOUGH HE'LL HUSBAND SOME OF THAT FOR FUTURE LEGAL COSTS TO DATE HE'S PAID NEARLY THREEQUARTERS OF A MILLION DOLLARS FOR HIS OWN AND STAFFERS' LEGAL BILLS THE CITY'S CREAKY DEMOCRATIC MACHINE STILL CAN GET OUT THE VOTE FOR ROSTY IN SEVERAL WARDS OF HIS DISTRICT WE'LL FIND EVERY SINGLE ROSTENKOWSKI VOTER OUT THERE BOASTS ALDERMAN DICK MELL WHO'S INTERESTED IN SEEING HIS SONINLAW SUCCEED THE INCUMBENT SOMEDAY THEN THERE'S THE FACT OF MR ROSTENKOWSKI'S POWER WHICH SWAYS EVEN ALIENATED VOTERS AIDES SAY CAMPAIGN POLLS LAST WEEK SHOWED ENCOURAGING SUPPORT IN THE UPPERINCOME ENCLAVES NEAR LAKE MICHIGAN WHICH ENCOMPASSES MR SIMPSON'S LIBERAL BASE AND PART OF MR CULLERTON'S STATE SENATE DISTRICT THESE ARE PRAGMATIC VOTERS LIKE PETE ADAMS A YOUNG PROFESSIONAL IN UPSCALE LINCOLN PARK IN 1992 HE ATTENDED A COFFEE FOR MR ROSTENKOWSKI BUT OPTED NOT TO VOTE RATHER THAN TO BOOST THE LAWMAKER'S WINNING PERCENTAGE NOW WITH MR ROSTENKOWSKI IN MORTAL DANGER HE RELUCTANTLY CONSIDERS VOTING FOR HIM THE ONLY THING HE'S GOT GOING FOR HIM MR ADAMS SAYS IS THE CLOUT HE CARRIES IN WASHINGTON 9402220091 940222 INTERNATIONAL JAPANESE OFFICIALS SAY US IS SEEKING GUARANTEED RESULTS IN TRADE DISPUTE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN IS WORRIED THAT THE CLINTON ADMINISTRATION'S RESULTSORIENTED TRADE POLICY REALLY AMOUNTS TO GUARANTEEORIENTED TRADE IN THE CURRENT TRADE BATTLE OVER JAPAN'S CELLULARTELEPHONE MARKET THE US HASN'T JUST ASKED JAPAN FOR MEASURABLE RESULTS BUT HAS ALSO ATTEMPTED TO MANDATE THE SPECIFIC STEPS JAPAN SHOULD TAKE TO ACHIEVE THEM JAPANESE OFFICIALS SAY THEY'RE DISMAYED BY THE LENGTHS TO WHICH THE CLINTON ADMINISTRATION IS WILLING TO PUSH ITS RESULTSORIENTED POLICIES WE HAVE TO SOLVE THIS PROBLEM OF THE JAPANESE TRADE DEFICIT BUT NOT THROUGH DETAILED CONTROL OF BUSINESS ACTIVITY LIKE THAT IN A TOTALITARIAN COUNTRY SAYS YOSHIO UTSUMI A DIRECTOR GENERAL AT JAPAN'S MINISTRY OF POSTS AND TELECOMMUNICATIONS THE DISAGREEMENT OVER THE CELLULAR MARKET REFLECTS THE DEEPER DISTRUST THAT HAS BEGUN TO TINGE USJAPANESE RELATIONS THAT MUTUAL SUSPICION CULMINATED IN THE COLLAPSE OF THE FRAMEWORK TRADE TALKS JUST OVER A WEEK AGO WHEN JAPAN REJECTED USPROPOSED IMPORT TARGETS AS A VIOLATION OF FREE TRADE US OFFICIALS WEARY OF USJAPAN TRADE AGREEMENTS THAT UNRAVEL YEARS AFTER BOTH SIDES THOUGHT MATTERS RESOLVED ARGUE THAT MICROMANAGEMENT OF THE MARKETOPENING MEASURES IS NEEDED TO GUARANTEE THAT JAPAN LIVES UP TO ITS COMMITMENTS BUT THE MORE VEHEMENTLY THE US INSISTS THAT JAPAN ACCEPT NUMERICAL MEASURES THE MORE VIGOROUSLY JAPAN REJECTS US EFFORTS AS MANAGED TRADE I DON'T HAVE ANY IDEA TO BE HONEST ON WHEN AND HOW WE CAN BREAK THE DEADLOCK OVER IMPORT TARGETS DEPUTY FOREIGN MINISTER KOICHIRO MATSUURA SAID MONDAY AT THE JAPAN NATIONAL PRESS CLUB TEMPERS IN TOKYO ARE STARTING TO FRAY OVER THE US THREAT TO IMPOSE SANCTIONS IF JAPAN DOESN'T AGREE TO ITS PROPOSALS IN THE CELLULAR CASE EARLY MONDAY MORNING VANDALS SPRAYPAINTED THE TOKYO HEADQUARTERS OF MOTOROLA INC A CENTRAL FIGURE IN THAT DISPUTE WITH SLOGANS SUCH AS ANTIAMERICA AND CRUSH THE PRODUCTPUSHING US IMPERIALISTS THE CELLULAR DISPUTE OFFERS A CLEAR ILLUSTRATION OF THE TACTICS THAT MIGHT FOLLOW THE IMPOSITION OF NUMERICAL TARGETS MOTOROLA HAS LONG TUSSLED WITH THE JAPANESE GOVERNMENT OVER THE DENSELY POPULATED TOKYONAGOYA CELLULAR CORRIDOR ALTHOUGH THE COMPANY GAINED A NEARLY 50 MARKET SHARE IN OTHER AREAS OF JAPAN IT WASN'T ABLE TO SELL ITS TACS CELLULAR EQUIPMENT IN THE TOKYONAGOYA AREA UNTIL 1989 WHEN UNDER US TRADE PRESSURE JAPAN PAIRED MOTOROLA WITH CELLULAR OPERATOR IDO CORP SINCE THEN HOWEVER MOTOROLA HAS CHARGED THAT IDO HAS PUT MOST OF ITS EFFORT INTO A RIVAL SYSTEM DESIGNED BY NIPPON TELEGRAPH & TELEPHONE CORP IDO SAYS IT MERELY HAD A LATE START WITH TACS WHEN US OFFICIALS BEGAN MEETING WITH JAPANESE OVER THE ISSUE LAST YEAR THEY SUGGESTED A SERIES OF STEPS JAPAN COULD TAKE TO ENSURE THAT IDO OR SOMEONE ELSE COMPLETED THE MOTOROLACOMPATIBLE NETWORK WITHOUT A GUARANTEE IT WAS BASICALLY AN ISSUE OF TRUST SAYS A US OFFICIAL WE'D ALREADY BEEN HAD ONCE WE NEEDED A LITTLE MORE FOR INSTANCE THE US SUGGESTED THAT THE POSTAL MINISTRY EITHER HAND OVER IDO'S ADDITIONAL FREQUENCIES TO ANOTHER COMPANY THAT WOULD BUILD A MOTOROLACOMPATIBLE SYSTEM OR BREAK UP IDO INTO TWO COMPANIES ONE TO RUN THE NTT SYSTEM AND ONE TO RUN THE TACS SYSTEM IN ANOTHER US TRADE OFFICIALS SUGGESTED THAT IDO COULD TRANSFER ROUGHLY ONETHIRD OF THE FREQUENCIES USED FOR THE NTT SYSTEM TO THE MOTOROLACOMPATIBLE SYSTEM THEREBY LIMITING THE GROWTH OF THE NTT SYSTEM AND ENCOURAGING THE COMPANY TO DEVELOP TACS MORE FULLY JAPAN REJECTED THOSE IDEAS AS THE CLOCK TICKED DOWN TOWARD A FEB 15 DEADLINE FOR FURTHER ACTION MOTOROLA ASKED IDO TO BUY 225000 OF ITS CELLULAR HANDSETS AS A WAY OF GUARANTEEING THAT IDO WOULD SEEK AT LEAST THAT MANY CUSTOMERS THAT IS LIKE BURGLARY SAYS IDO CHIEF EXECUTIVE OFFICER TAKEO TSUKADA MOTOROLA HAS NO RIGHT TO DICTATE OUR BUSINESS PLAN IDO NOW SAYS IT WILL INVEST AN ADDITIONAL 30 BILLION YEN 2851 MILLION TO COMPLETE THE TACS NETWORK BY MOTOROLA'S REQUESTED DATE OF MARCH 1995 BUT THE US SIDE IS UNMOVED WE'RE LOOKING FOR SOMETHING MORE CONCRETE THAN THE POSTAL MINISTRY SAYING WE STAND BEHIND IDO'S EFFORTS' THEY SAID THAT LAST TIME SAYS FRANK SANDA GENERAL MANAGER OF MOTOROLA'S CELLULAR BUSINESS IN JAPAN MICHAEL WILLIAMS CONTRIBUTED TO THIS ARTICLE 9402220090 940222 TWO DEVELOPERS PLAN VENTURES IN BIOTECH FIELD BIOPLEX AND HEALTH SCIENCES TO BUY REAL ESTATE LEASE IT TO COMPANIES BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL TWO RIVAL REALESTATE DEVELOPERS WITH WEALTHY BACKERS ARE LAUNCHING VENTURES TO OFFER CASHSTARVED BIOTECHNOLOGY COMPANIES A NEW WAY TO FINANCE THEIR RESEARCH LABORATORIES AND PILOT MANUFACTURING PLANTS BIOPLEX GROUP INC BANKROLLED BY BOSTON'S GOSMAN FAMILY PLANS TO INVEST 300 MILLION IN BIOTECH REAL ESTATE OVER THE NEXT 18 MONTHS HEALTH SCIENCE PROPERTIES INC SAN DIEGO SAID IT HAS BEGUN NEGOTIATIONS TO ACQUIRE BIOTECH PROPERTIES FOR A SPECIALIZED REALESTATEINVESTMENT TRUST THE COMPANIES JUST NOW GETTING OFF THE GROUND HOPE TO PURCHASE FACILITIES AND THEN LEASE THEM BACK TO THEIR BIOTECH TENANTS SINCE BANKS AND OTHER FINANCIAL INSTITUTIONS RARELY LEND MONEY FOR SPECIALIZED BIOTECH LAB CONSTRUCTION COMPANIES TYPICALLY ARE FORCED TO USE HIGHCOST VENTURE CAPITAL OR PROCEEDS FROM STOCK SALES THESE BIOINDUSTRY COMPANIES HAVE HAD TO PUT THEIR HARDEARNED CASH INTO BRICKS AND MORTAR OUR APPROACH IS TO FREE UP THAT CASH AND ALLOW THE COMPANIES TO DO WHAT THEY DO BEST PRODUCT DEVELOPMENT SAID KENDELL R LANG BIOPLEX CHIEF EXECUTIVE OFFICER BESIDES SALE/LEASEBACK TRANSACTIONS BIOPLEX IS OFFERING TO FINANCE NEW CONSTRUCTION HEALTH SCIENCE PROPERTIES IS THE ONLY REAL ESTATE INVESTMENT TRUST SPECIALIZING IN BIOTECHNOLOGY AND PHARMACEUTICAL FACILITIES SAID PRESIDENT ALAN GOLD WE'RE CURRENTLY NEGOTIATING THREE TRANSACTIONS WITH A COMBINED VALUE OF ABOUT 50 MILLION THE TRUST WAS CAPITALIZED LAST MONTH BY A PRIVATE GROUP INCLUDING JACOBS ENGINEERING GROUP INC A LARGE PASADENA CALIFBASED CONSTRUCTION AND ENGINEERING CONCERN MR GOLD DECLINED TO SPECIFY THE SIZE OF THE INVESTMENT BIOTECH EXECUTIVES AND CONSULTANTS SAY IT CAN COST HUNDREDS OF DOLLARS A SQUARE FOOT TO INSTALL SPECIALIZED AIR WATER AND OTHER SYSTEMS NEEDED TO CONVERT INDUSTRIAL SPACE INTO BIOMEDICAL RESEARCH AND MANUFACTURING SPACE SOME COMPANIES HAVE HAD TO GIVE UP A HUGE PERCENTAGE OF THE BUSINESS TO GET FACILITIES BUILT SAID RAY DITTAMORE A CONSULTANT WITH ERNST & YOUNG IN SAN DIEGO THE REAL QUESTION IS WHAT RENTS WOULD BE CHARGED TO GIVE THE INVESTORS AN APPROPRIATE RATE OF RETURN UNTIL NOW AT LEAST INSTITUTIONAL INVESTORS HAVE SHIED AWAY FROM FINANCING SUCH IMPROVEMENTS BECAUSE OF THE UNCERTAIN FUTURE OF THEIR TENANTS BUT THERE IS GROWING DEMAND FOR BIOTECH FACILITIES AS THE INDUSTRY MATURES AND MORE PROSPECTIVE NEW TENANTS TO REPLACE THOSE THAT FAIL OR MOVE UP TO BIGGER FACILITIES WE'RE ATTEMPTING TO EDUCATE THE BANKS AND INSURANCE COMPANIES MR LANG SAID MR GOLD AND MR LANG WERE PARTNERS UNTIL LAST YEAR WHEN THEY SPLIT UP AND WENT THEIR SEPARATE WAYS WITH DIFFERENT INVESTOR GROUPS THE VENTURE THEY WORKED ON TOGETHER TRIED UNSUCCESSFULLY TO ATTRACT UNDERWRITERS FOR A PUBLIC STOCK OFFERING MR LANG IS A FORMER DIRECTOR OF CORPORATE REAL ESTATE IN THE LOS ANGELES OFFICES OF KMPG PEAT MARWICK MR GOLD A LONGTIME SAN DIEGO REALESTATE FINANCING EXECUTIVE WAS A CLIENT OF THE FIRM MR LANG SAID THAT THE BULK OF BIOPLEX'S FUNDS ARE COMING FROM THE GOSMAN FAMILY WHOSE INTERESTS INCLUDE MEDITRUST MORTGAGE INVESTMENTS A REALESTATE INVESTMENT TRUST IF YOU LOOK AT THE HISTORY OF MEDITRUST IN THE HEALTHCARE INDUSTRY WE ARE FOLLOWING THAT PATTERN WE'RE APPLYING THAT STRATEGY TO AN EMERGING INDUSTRY MR LANG SAID BIOPLEX OFFICES ARE IN WELLESLEY MASS AND LA JOLLA CALIF 9402220089 940222 STRUTHERS WELLS FILES PETITION WARREN PA STRUTHERS WELLS CORP FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE THE MAKER OF INDUSTRIAL EQUIPMENT AS WELL AS ITS STRUTHERS SCIENTIFIC UNIT WILL CONTINUE TO OPERATE DURING THE REORGANIZATION THE BANKRUPTCY PETITION WAS FILED IN BANKRUPTCY COURT IN THE WESTERN DISTRICT OF PENNSYLVANIA 9402220088 940222 INTERNATIONAL LARGE GERMAN UNION PLANS SELECTIVE STRIKES SPECIAL TO THE WALL STREET JOURNAL FRANKFURT BOWING TO A WEAK ECONOMY IG METALL GERMANY'S LARGEST UNION YESTERDAY UNVEILED A MODEST STRATEGY OF SELECTIVE AND SMALLSCALE STRIKES TO COUNTER DEMANDS FOR WAGE CUTS IN THE 1994 CONTRACT IF ITS SOFT STRIKE TACTICS DON'T ADVANCE THE WAGE TALKS HOWEVER IG METALL ALSO THREATENED TO ESCALATE ITS WALKOUT THROUGHOUT MOST OF NORTHERN GERMANY UNION OFFICIALS SAID YESTERDAY TWO WEEKS STILL REMAIN TO AVERT A STRIKE UNION PRESIDENT KLAUS ZWICKEL SAID THE UNION WILL BE READY TO BEGIN A STRIKE ON MONDAY MARCH 7 IN ITS FIRST FORMAL STEPS TOWARD A FULLBLOWN STRIKE THE UNION YESTERDAY ANNOUNCED THAT WAGE TALKS HAVE COLLAPSED AND THAT IT WILL HOLD A STRIKE VOTE IN LOWER SAXONY WHICH IS ONE OF WESTERN GERMANY'S INDUSTRIALLY LESS IMPORTANT REGIONS POLLING IN THE DISTRICT WILL RUN FROM MARCH 13 IG METALL TYPICALLY CONCENTRATES ITS STRIKES IN SELECTED DISTRICTS AND WON'T HOLD A NATIONWIDE WALKOUT IF TALKS DON'T MOVE AHEAD BY MARCH 15 THE UNION WILL BEGIN A SECOND STRIKE VOTE IN THE LARGER DISTRICT THAT INCLUDES HAMBURG BREMEN AND SCHLESWIGHOLSTEIN IF THAT VOTE IS APPROVED A STRIKE COULD BEGIN IN THAT SECOND DISTRICT ON MARCH 21 ZWICKEL SAID AT A PRESS BRIEFING AT THE UNION'S FRANKFURT HEADQUARTERS 9402220087 940222 SEC FILES A LAWSUIT AGAINST HOLDER BROKER OVER PANTHEON STOCK DALLAS THE SECURITIES AND EXCHANGE COMMISSION FILED A LAWSUIT IN US DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS AGAINST A SHAREHOLDER AND A BROKER IN CONNECTION WITH TRADING IN PANTHEON INDUSTRIES INC STOCK NEITHER PANTHEON INDUSTRIES NOR ANY OF ITS OFFICERS OR DIRECTORS ARE A PARTY TO THE SUIT IN THE COMPLAINT THE SEC CHARGED MICHAEL W REHTORIK A MIAMI INVESTOR WHO HELD SHARES OF PANTHEON AND MITCHELL S ROSENTHAL A REGISTERED SECURITIES BROKER WITH MAIN STREET CAPITAL CORP DALLAS WITH FREERIDING OR PLACING ORDERS FOR SECURITIES AND NOT PAYING FOR THEM MR REHTORIK HAD PREVIOUSLY BEEN ENJOINED FROM ASSOCIATION WITH ANY BROKER DEALER OR INVESTMENT COMPANY THE AGENCY SAID MAIN STREET CAPITAL WENT OUT OF BUSINESS JAN 21 AS A RESULT OF A LOSS IN THE ACCOUNT OF MR REHTORIK HELD IN THE NAME OF DEUTSCH TRADING CO WHICH HAD PLACED ORDERS FOR PANTHEON STOCK THE SEC SAID ATTORNEYS FOR MESSRS ROSENTHAL AND REHTORIK DIDN'T RETURN PHONE CALLS 9402220086 940222 ONTARIO CUTS TAXES ON TOBACCO IN EFFORT TO CURB SMUGGLING TORONTO THE ONTARIO GOVERNMENT CUT TOBACCO TAXES SHARPLY TO STEM THE FLOW OF SMUGGLED CIGARETTES FROM THE US AND FROM QUEBEC WHERE TAXES WERE SLASHED EARLIER THIS MONTH ONTARIO'S TAX CUTS WHICH ARE BEING MATCHED BY CUTS IN FEDERAL TAXES WILL REDUCE THE PRICE OF A CARTON OF 200 CIGARETTES TO ABOUT 23 CANADIAN DOLLARS US1717 FROM C41 THE FEDERAL GOVERNMENT EARLIER THIS MONTH CUT CIGARETTE TAXES BY C5 A CARTON IMPOSED A SURTAX ON TOBACCO MANUFACTURERS' PROFITS AND PLEDGED TO MATCH ANY PROVINCIAL TAX CUTS QUEBEC QUICKLY SLASHED ITS TOBACCO TAXES WHICH BROUGHT THE COST OF A CARTON IN THAT PROVINCE TO C23 NEW BRUNSWICK ALSO ANNOUNCED A TOBACCOTAX ROLLBACK HIGH TAXES ON CIGARETTES LED TO RAMPANT SMUGGLING OF CIGARETTES IN THE LAST FEW YEARS MAINLY CANADIAN CIGARETTES THAT ARE EXPORTED DUTYFREE TO THE US THEN SMUGGLED BACK INTO THE COUNTRY US CIGARETTES ALSO ARE SMUGGLED INTO CANADA BUT ONTARIO HAS FACED A FLOOD OF CIGARETTES FROM QUEBEC SINCE QUEBEC CUT ITS TOBACCO TAXES EARLIER THIS MONTH SAID ONTARIO FINANCE MINISTER FLOYD LAUGHREN MR LAUGHREN SAID THE PROVINCE WILL LOSE ABOUT C500 MILLION IN REVENUE AS A RESULT OF THE TAX CUT THE LOSSES WILL HAVE TO BE MATCHED BY SPENDING CUTS TO KEEP OUR DEFICIT ON A DOWNWARD TRACK HE SAID 9402220085 940222 WHO'S NEWS THREE BANKERS QUIT KIDDER PEABODY TO JOIN BAIRD & CO IN CHICAGO MILWAUKEE THREE INVESTMENT BANKERS LEFT KIDDER PEABODY & CO'S CHICAGO OFFICE TO JOIN ROBERT W BAIRD & CO'S CHICAGO OPERATION BAIRD A BROKERAGE HOUSE THAT IS 80OWNED BY NORTHWESTERN MUTUAL LIFE INSURANCE CO SAID THE ADDITIONS MARK A MAJOR EXPANSION OF ITS INVESTMENT BANKING AND PRINCIPAL INVESTMENT ACTIVITIES AMONG THE DEFECTORS FROM KIDDER'S CHICAGO OFFICE IS PAUL E PURCELL 47 YEARS OLD WHO HEADED THE GENERAL ELECTRIC CO UNIT'S MIDWEST INVESTMENT BANKING ACTIVITIES FOR THE PAST SEVEN YEARS MR PURCELL WHO HAD BEEN A MANAGING DIRECTOR AT KIDDER WAS NAMED HEAD OF BAIRD'S MERGERS AND ACQUISITIONS GROUP A NEWLY CREATED POSITION THAT BAIRD SAID UNDERSCORES THE GROWTH OF THE OPERATION MR PURCELL WAS WITH THE COMPANY FOR 22 YEARS HE'LL HEAD A STAFF WHOSE SIZE HASN'T BEEN DETERMINED BUT WILL BEGIN AT FIVE PEOPLE BAIRD'S M&A GROUP PAUL J CARBONE 32 FORMER SENIOR VICE PRESIDENT AT KIDDER AND A 10YEAR VETERAN THERE WILL WORK WITH MR PURCELL STEVEN G BOOTH A 33YEAROLD KIDDER VICE PRESIDENT ALSO MOVED WITH MR PURCELL TO BAIRD BAIRD NOTED THAT IT HAS SIGNIFICANTLY INCREASED ITS INVESTMENT BANKING AND M&A ACTIVITY IN RECENT YEARS AND LAST YEAR RAISED 43 BILLION IN EQUITY AND DEBT CAPITAL FOR CORPORATIONS MUNICIPALITIES SCHOOLS AND NONPROFIT ORGANIZATIONS 9402220084 940222 MARKETING & MEDIA AUTHOR'S LIBEL SUIT OVER HARSH REVIEW IS ALLOWED TO PROCEED BY APPEALS COURT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A CLOSELY WATCHED LIBEL CASE A FEDERAL APPEALS COURT SAID AN AUTHOR MAY PROCEED WITH A LAWSUIT ALLEGING THAT A HARSH BOOK REVIEW PUBLISHED BY THE NEW YORK TIMES RUINED HIS CAREER THE RULING BY A THREEJUDGE PANEL OF THE US COURT OF APPEALS HERE WAS A PROCEDURAL VICTORY FOR INVESTIGATIVE JOURNALIST DAN MOLDEA AND COULD ENCOURAGE OTHER AUTHORS TO SUE OVER NEGATIVE REVIEWS WRITING FOR THE MAJORITY JUDGE HARRY EDWARDS SAID THAT SIMPLY BECAUSE A POTENTIALLY HARMFUL STATEMENT APPEARS IN A BOOK REVIEW DOESN'T INSULATE THE PUBLISHER FROM BEING SUED JUDGE EDWARDS COMPARED A REVIEW CALLING A JOURNALIST SLOPPY AS THE TIMES REVIEW DID TO A PUBLISHED DESCRIPTION OF A BRAIN SURGEON AS HAVING CLUMSY HANDS BOTH CRITICISMS COULD BE THE BASIS OF SUITS HE SAID THE DISSENTING JUDGE ABNER MIKVA WARNED THAT THE RULING WOULD OPEN UP THE ENTIRE ARENA OF ARTISTIC CRITICISM TO MASS DEFAMATION SUITS LAWYERS WHO REPRESENT MEDIA CLIENTS WORRIED THAT THE OVERALL TENOR OF THE MAJORITY OPINION WOULD DETER TRIAL JUDGES IN WASHINGTON AND POSSIBLY OTHER JURISDICTIONS FROM REJECTING LIBEL CLAIMS IN THE EARLY STAGES OF LITIGATION FRIDAY'S RULING DIDN'T DIRECTLY ADDRESS THE MERITS OF THE SUIT AGAINST THE TIMES INSTEAD THE APPEALS COURT SAID A TRIAL JUDGE HAD ERRED IN 1992 BY THROWING OUT THE SUIT BEFORE IT EVEN GOT TO A JURY A SPOKESWOMAN FOR NEW YORK TIMES CO SAID THE PUBLISHER IS CONSIDERING SEEKING A REHEARING BY THE FULL 10MEMBER APPEALS COURT MR MOLDEA SUED THE TIMES IN 1990 AFTER THE NEWSPAPER PUBLISHED A SCATHING REVIEW OF HIS BOOK INTERFERENCE HOW ORGANIZED CRIME INFLUENCES PROFESSIONAL FOOTBALL WHICH ALLEGED CONNECTIONS BETWEEN THE NATIONAL FOOTBALL LEAGUE AND ORGANIZED CRIME AND GAMBLING THE REVIEWER A TIMES SPORTS WRITER SAID THE BOOK CONTAINED TOO MUCH SLOPPY JOURNALISM TO BE TRUSTED DEMANDING 10 MILLION IN DAMAGES MR MOLDEA CLAIMED THAT THE REVIEW PORTRAYED HIM AS INCOMPETENT AND BECAUSE OF THE TIMES'S INFLUENCE EFFECTIVELY ENDED HIS CAREER AS A FREELANCE JOURNALIST AND AUTHOR BUT THE TRIAL JUDGE RULED THAT THE TIMES COULDN'T BE SUED FOR LIBEL BECAUSE THE REVIEW CONTAINED ONLY UNVERIFIABLE STATEMENTS OF OPINION AND INDISPUTABLY TRUE ASSERTIONS THE SUPREME COURT IN A 1990 RULING REJECTED THE PREVIOUSLY WIDESPREAD JUDICIAL VIEW THAT STATEMENTS OF OPINION WERE ENTIRELY PROTECTED AGAINST LIBEL SUITS FRIDAY'S DECISION BY THE WASHINGTON APPEALS COURT SAID A LIBEL SUIT CONCERNING A BOOK REVIEW SHOULD GO BEFORE A JURY IF THE PLAINTIFF CAN SHOW TWO THINGS THAT THE REVIEW WAS BASED ON POSSIBLY UNTRUE STATEMENTS AND THAT IT PLAUSIBLY COULD HAVE HARMED THE PLAINTIFF'S CAREER OR REPUTATION THE MAJORITY SAID SOME OF THE CHARACTERIZATIONS OF MR MOLDEA'S BOOK WERE SUFFICIENTLY FACTUAL TO ALLOW A JURY TO DETERMINE THEIR TRUTH OR FALSITY MOREOVER THE MAJORITY SAID A JURY COULD CONCEIVABLY FIND SOME OF THE STATEMENTS IN THE REVIEW TO BE FALSE ONE SUCH STATEMENT WAS THAT MR MOLDEA MISPORTRAYED A PREGAME MEETING BETWEEN FORMER NEW YORK JETS QUARTERBACK JOE NAMATH AND AN OPPOSING PLAYER AS SINISTER MR MOLDEA ARGUES THAT HE DEPICTED THE MEETING AS INNOCENT 9402220083 940222 WHO'S NEWS STAR MANAGER REJOINS GOLDMAN SACHS AS EUROBOND TEAM UNDERGOES CHANGES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON GOLDMAN SACHS & CO ANNOUNCED THE RETURN OF ITS STAR SYNDICATE MANAGER AND SAID IT IS REORGANIZING ITS LONDONBASED EUROBOND TEAM MICHAEL SHERWOOD 28 YEARS OLD THE FORMER HEAD OF BOND SYNDICATION AT GOLDMAN SACHS INTERNATIONAL LTD IS TO REJOIN THE FIRM TODAY A SPOKESMAN CONFIRMED MR SHERWOOD LEFT AT THE END OF JANUARY ALONG WITH SENIOR BOND TRADER SHAUN CHURCH 29 TO MANAGE FIXEDINCOME FUNDS IN LONDON FOR UNION BANCAIRE PRIVEE A GENEVABASED PRIVATE BANK MR SHERWOOD WHO CHANGED HIS MIND SHORTLY BEFORE HE WAS TO BEGIN HIS NEW JOB LAST WEEK WASN'T AVAILABLE TO COMMENT AN OFFICIAL AT UNION BANCAIRE PRIVEE SAID THE BANK WAS DISAPPOINTED THAT MR SHERWOOD WOULDN'T BE JOINING THEM GOLDMAN HAS BEEN HIT BY A NUMBER OF HIGHPROFILE DEPARTURES IN THE PAST THREE MONTHS AND PARTNERS ARE SAID TO BE CONCERNED ABOUT THE EROSION OF THE FIRM'S IMAGE AS ONE THAT CULTIVATES TALENT AND ENGENDERS INTENSE LOYALTY THEY'VE STARTED TO LOOK LIKE ANY OTHER INVESTMENT BANK WHERE THE STARS QUICKLY JUMP SHIP IF THEY DON'T GET ENOUGH RESPECT OR MONEY SAID AN EXECUTIVE AT A RIVAL FIRM OUTSIDE EXPERTS FAMILIAR WITH GOLDMAN SACHS PAY POLICIES ESTIMATE THAT MR SHERWOOD WAS PAID A BONUS IN 1993 BETWEEN 2 MILLION AND 35 MILLION GOLDMAN OFFICIALS DECLINED TO DISCUSS COMPENSATION MR SHERWOOD WILL RETURN TO GOLDMAN IN LONDON AS AN EXECUTIVE DIRECTOR AND WILL WORK CLOSELY ON THE FIXEDRATE DEBT SYNDICATE WITH NOEL DUNN ANOTHER EXECUTIVE DIRECTOR AT GOLDMAN SACHS IT IS BELIEVED SENIOR GOLDMAN SACHS MANAGEMENT ENTICED MR SHERWOOD BACK WITH PROMISES THAT HE WOULD BE MADE AN EXECUTIVE PARTNER BY THE END OF THE YEAR THERE ARE CURRENTLY 148 SUCH PARTNERS WORLDWIDE GOLDMAN HAS 27 PARTNERS IN LONDON THE FIRM'S PRETAX PROFIT FOR THE FISCAL YEAR ENDED OCT 31 WAS 23 BILLION ACCORDING TO INDEPENDENT ESTIMATES GOLDMAN DOESN'T MAKE ITS RESULTS PUBLIC JOINING MR SHERWOOD ON THE DEBT SYNDICATE WILL BE ROBERT VAN DER PUTTEN CURRENTLY A GOLDMAN ASSOCIATE WITH RESPONSIBILITY FOR MEDIUMTERM NOTE PROGRAMS SION KEARSEY AND CHRIS PIGDEN A SENIOR TRADER WILL BECOME COHEADS OF THE FIRM'S EUROBOND TRADING DEPARTMENT LATE LAST MONTH THE GOLDMAN EUROBOND TEAM LOST JONATHAN GREENWOOD 31 WHO LEFT THE SYNDICATION DESK TO WORK IN AMSTERDAM FOR ABNAMRO BANK NV MR GREENWOOD SAID HE LEFT GOLDMAN IN ORDER TO SPEND MORE TIME WITH HIS NEW WIFE A DUTCH CITIZEN TWO OF GOLDMAN'S LEADING ECONOMISTS IN LONDON DAVID MORRISON AND JEREMY HALE LEFT LAST LATE YEAR TO JOIN TIGER FUND A US MONEYMANAGEMENT FIRM MR MORRISON HAD BEEN A GOLDMAN EXECUTIVE PARTNER ALSO MONDAY MERRILL LYNCH INTERNATIONAL LTD A UNIT OF MERRILL LYNCH & CO SAID IT WOULD BEGIN MAKING MARKETS IN UK GOVERNMENT BONDS OR GILTS ON FEB 28 THE FIRM ANNOUNCED IT HAD RECENTLY RECEIVED APPROVAL FROM THE BANK OF ENGLAND THE LONDON STOCK EXCHANGE AND THE SECURITIES AND FUTURES AUTHORITY MICHAEL R SESIT CONTRIBUTED TO THIS ARTICLE 9402220082 940222 GE CAN'T FIND AN IMPORTANT DOCUMENT DESPITE MASSIVE SWEEPING' OF OFFICES BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL IF THERE WERE A GOOD HOUSEKEEPING AWARD FOR THE BESTSWEPT CORPORATE OFFICES GENERAL ELECTRIC CO WOULD HAVE TO BE A TOP CONTENDER BUT THEN AGAIN IT MIGHT NOT FOR MISSING SOME NOOKS AND CRANNIES TO RESPOND TO THE JUSTICE DEPARTMENT'S PRICEFIXING INVESTIGATION GE HAS HAD TO COLLECT INTERNAL DOCUMENTS SWEEPING IN LEGAL PARLANCE FROM ITS LABYRINTHINE OPERATIONS AROUND THE GLOBE TWO DOZEN GE LAWYERS AND AUDITORS HAVE RUMMAGED THROUGH DESKS CREDENZAS AND COMPUTERS GATHERING MORE THAN 300000 PAGES OF DOCUMENTS DESPITE THE MASSIVE SWEEP OF OFFICES SOME SWEPT TWICE AND EVEN FOUR TIMES AT LEAST ONE IMPORTANT DOCUMENT IS STILL MISSING IT IS A BRIEFING PAPER PREPARED BY EDWARD RUSSELL THE FIRED GE EXECUTIVE WHOSE CHARGES OF PRICEFIXING IN INDUSTRIAL DIAMONDS LED TO THE JUSTICE DEPARTMENT'S INDICTMENT OF GE LAST WEEK MR RUSSELL MAINTAINED THAT THE DOCUMENT WHICH HE GAVE TO HIS BOSS CONTAINED HIS PRICEFIXING WARNINGS BEFORE MR RUSSELL DROPPED HIS LAWSUIT AGAINST GE LAST WEEK IN A SETTLEMENT GE TRIED TO PROVE THAT THERE WAS NO SUCH WARNING IN THE BRIEFING PAPER BUT THE PROBLEM WAS THAT GE COULDN'T PRODUCE IT TO PROVE IT AND MR RUSSELL FOR SOME PECULIAR REASONS HADN'T KEPT A COPY HIMSELF THE DOCUMENT WAS LAST SEEN WHEN GLEN HINER MR RUSSELL'S BOSS PUT IT IN HIS TRIP FILE ON HIS WAY TO MEET WITH DE BEERS OFFICIALS IN LONDON I THINK THE PAPER WAS IN MY FOLDER THE FOLDER WAS IN MY BRIEFCASE I NEVER HAD THE FOLDER OUT DURING THE MEETING MR HINER THE FORMER HEAD OF GE PLASTICS WHO IS NOW CHAIRMAN OF OWENSCORNING FIBERGLAS CORP TOLD THE COURT TO THE BEST OF MY KNOWLEDGE HE SAID ABOUT THE DOCUMENT THAT'S WHERE IT IS IN THE TRIP FILE THE FILE ENDED UP IN THE CUSTODY OF MR HINER'S SECRETARY WHEN HE RETURNED TO PITTSFIELD MASS THE HEADQUARTERS OF GE PLASTICS WHEN GE AUDITORS BEGAN TO SWEEP OFFICES IN RESPONSE TO A GOVERNMENT SUBPOENA IN MAY 1992 LOUISE KOVAL THE SECRETARY PULLED THE FILE A MANILA FOLDER THE BRIEFING PAPER WASN'T IN THE FILE SHE TESTIFIED THE ELUSIVE DOCUMENT WAS AT THE CENTER OF MR RUSSELL'S LAWSUIT AGAINST GE THE JUSTICE DEPARTMENT WANTED IT TOO FINDING THE PAPER WAS A TOP PRIORITY SAID DAVID MCCALPIN OF GE'S CORPORATE AUDIT STAFF IN TESTIMONY HE SAID THE SEARCH FOR THE DOCUMENT TOOK THE AUDIT STAFF NOT ONLY TO WORTHINGTON OHIO THE BASE OF GE'S DIAMOND OPERATIONS AND PITTSFIELD WHERE MR RUSSELL GAVE THE BRIEFING PAPER TO MR HINER BUT TO GE'S HEADQUARTERS IN FAIRFIELD CONN AND TO OTHER OPERATIONS INCLUDING PARKERSBURG WVA FRANKFURT PARIS BRUSSELS LONDON SINGAPORE AND TOKYO IN WORTHINGTON THREE AUDITORS WENT THROUGH FILE DRAWERS FILE CABINETS BOOKSHELVES DESK TOPS AND COMPUTERS OF 34 PEOPLE IN LATE MAY AND EARLY JUNE WORKING 16 TO 18 HOURS A DAY ALL THEY FOUND WAS A DRAFT OF THE PAPER ON THE BOTTOM OF THE STACK OF JUST MISCELLANEOUS LOOSE PAPERS IN THE DESK DRAWER OF STEVE PALOVCHIK A SALES MANAGER THE DRAFT DATED SEPT 4 DIDN'T HAVE THE SORT OF STRONG ANTITRUST WARNING THAT MR RUSSELL CLAIMED WAS IN THE FINAL DRAFT AS FAR AS MR RUSSELL IS CONCERNED HAVING SETTLED HIS SUIT WITH GE THE DOCUMENT IS A MOOT ISSUE NOW 9402220081 940222 PRAGUE PREPARING LANDMARK DEBT SALE DRAWS MANY SUITORS FOR THE MUNI ISSUE BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE FLUSH WITH A FAVORABLE CREDIT RATING THE CITY OF PRAGUE IS FINDING PLENTY OF SUITORS FOR A PROPOSAL TO FLOAT ITS FIRST BOND ISSUE IN DECADES CITY OFFICIALS HOPE SOON TO PICK A LEAD MANAGER FOR THE 150 MILLION TO 250 MILLION ISSUE AND SOME SAY AS MANY AS 70 FINANCIAL INSTITUTIONS WILL SUBMIT PROPOSALS CITY OFFICIALS SAY ABOUT 50 PROPOSALS HAVE COME IN WITH OTHERS EXPECTED BEFORE THE DEADLINE AT THE END OF FEBRUARY THE BOND PROPOSAL HAS ATTRACTED HUGE ATTENTION IN THE INTERNATIONAL FINANCIAL COMMUNITY FOR SEVERAL REASONS FOR ONE THERE'S AN ELEMENT OF NOVELTY PRAGUE ALONG WITH THE CZECH NATIONAL BANK ARE THE ONLY TWO ENTITIES ACROSS THE FORMER EAST BLOC TO RECEIVE AN INVESTMENTGRADE RATING STANDARD & POOR'S CORP HAS AWARDED THE CITY A TRIPLEB RATING THE SAME AS THE CENTRAL BANK IT'S A VERY ROMANTIC ISSUE THE FIRST MUNICIPAL ISSUE IN EASTERN EUROPE ONE LONDON INVESTMENT BANKER SAYS IT'S DIFFICULT TO THINK OF ANOTHER CITY IN EASTERN EUROPE THAT COULD GET AN INVESTMENTGRADE RATING FOR THEIR PART BANKS AND SECURITIES FIRMS ARE TRYING TO BUILD TRACK RECORDS AS BOND MANAGERS IN A REGION ALMOST ENTIRELY UNFAMILIAR WITH THE CONCEPT AS ONE BANKER HERE PUT IT THERE ARE NOT THAT MANY EAST EUROPEAN DEALS TO GO AROUND THESE DAYS AND THIS IS A NEW AND VERY INTERESTING ISSUE EVERYONE'S TRYING TO GET HIS FOOT IN THE DOOR BUT AS FINANCE GIANTS SUCH AS NOMURA SECURITIES CO AND CS FIRST BOSTON INC JOCKEY TO WIN THE MANDATE MANY CONCEDE THE PACKAGE REMAINS WRAPPED IN MYSTERY PRAGUE MAYOR JAN KOUKAL SURPRISED THE FINANCIAL COMMUNITY WHEN HE ANNOUNCED THE BOND PROPOSAL TO FINANCE NECESSARY IMPROVEMENTS OF THE CITY'S SUBWAY AND ROAD SYSTEMS FRANKLY I WAS A LITTLE TAKEN ABACK THAT THE CITY WAS CHOOSING THIS ROUTE BECAUSE IT'S NOT ENTIRELY CLEAR HOW IT INTENDS TO PAY THE MONEY BACK SAYS ANOTHER PRAGUEBASED BANKER WHO AS THE OTHERS DECLINED TO BE NAMED AS IT STANDS NOW THE CITY DOESN'T HAVE THE EXPLICIT POWER TO TAX JIRI KLUMPAR HEAD OF THE CENTRAL BANK'S FINANCIALMARKETS SECTION SAYS HE HAS LITTLE DOUBT ABOUT THE CITY'S ABILITY TO REPAY ITS OBLIGATIONS THE CITY OWNS HUGE AMOUNTS OF VERY VALUABLE REAL ESTATE AND RECEIVES MILLIONS OF DOLLARS A YEAR IN FEES FROM BOTH LOCAL AND INTERNATIONAL BUSINESSES AND ALTHOUGH NO CZECH MUNICIPALITY HAS THE EXPLICIT POWER TO TAX THAT IS EXPECTED TO CHANGE IN A FEW MONTHS WITH A MAJOR REVISION OF THE TAX SYSTEM OFFICIALS AT THE CENTRAL BANK AND ELSEWHERE SAY THEY REMAIN CONCERNED BY WHAT APPEARS TO BE A LONE EFFORT ON MR KOUKAL'S PART TO SECURE A MAJOR BOND ISSUE WITHOUT CONSULTING THOSE IN THE GOVERNMENT THAT OVERSEE SUCH THINGS NEITHER MR KOUKAL NOR HIS TWO AIDES IN CHARGE OF THE BOND PROPOSAL COULD BE REACHED IMMEDIATELY FOR COMMENT THE ISSUE LIKELY TO HAVE AS MUCH AS A FIVEYEAR MATURITY MAY BE THE ONLY GOVERNMENTBACKED BOND FROM THE CZECH REPUBLIC THIS YEAR LAST YEAR THE CENTRAL BANK AND THE FEDERAL GOVERNMENT SOLD SEVERAL LARGE BONDS TO BUILD UP FOREIGNCURRENCY RESERVES AND TO COVER PAST BUDGET DEFICITS BUT WITH THE GOVERNMENT NOW RUNNING WELL IN THE BLACK AND WITH RESERVES TOTALING NEARLY 4 BILLION MR KLUMPAR SAYS NO FOREIGN FUNDING WILL BE NEEDED FOR QUITE SOME TIME JANET GUYON IN LONDON CONTRIBUTED TO THIS ARTICLE 9402220080 940222 TECHNOLOGY & HEALTH DELL EXPECTED TO ANNOUNCE REENTRY INTO THE NOTEBOOKCOMPUTER BUSINESS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS DELL COMPUTER CORP IS TIPTOEING BACK INTO THE NOTEBOOKCOMPUTER BUSINESS THE MAILORDER PERSONAL COMPUTER VENDOR IS EXPECTED TODAY TO ANNOUNCE THAT IT WILL BEGIN SELLING A FAMILY OF FIVE NOTEBOOK PCS MADE BY RIVAL AST RESEARCH INC IRVINE CALIF THE MACHINES WHICH DELL WILL MARKET UNDER THE NAME LATITUDE ARE THE FIRST NOTEBOOKS TO BE SOLD BY DELL SINCE THE ONETIME HIGHFLIER SCRAPPED ITS NOTEBOOK BUSINESS LAST SPRING AMID A SPATE OF EMBARRASSING PRODUCT SNAFUS THOUGH THE COMPANY HAS SPENT THE PAST YEAR BUILDING UP A NOTEBOOK DEVELOPMENT TEAM AND FIXING THE INTERNAL PROCESSES THAT LEAD TO THE DEBACLE IT HAS MISSED OUT ON A MARKET THAT HAS SINCE BECOME THE HOTTEST IN COMPUTING NOTEBOOK SALES CURRENTLY ACCOUNT FOR ABOUT 20 OF SALES AT MOST OF DELL'S COMPETITORS AND BECAUSE THEY ARE PRICED HIGHER THAN DESKTOP PCS COMPRISE AN EVEN BIGGER CHUNK OF PROFITS WHILE ANALYSTS PRAISE DELL FOR GETTING BACK INTO THE BUSINESS THEY QUESTION WHY IT TOOK SO LONG FOR THE COMPANY TO ANNOUNCE THAT IT ESSENTIALLY IS RESELLING SOMEBODY ELSE'S TECHNOLOGY THE POINT IS THAT THEY'RE A CLEAR NOTCH BEHIND SAID KIMBALL BROWN A TECHNOLOGY ANALYST AT DATAQUEST INC IN SAN JOSE CALIF IT'S A START DELL OFFICIALS SAY THEIR PRIMARY GOAL WITH THE NEW NOTEBOOKS IS TO GET BACK INTO THE RACE THEY SAY THE MACHINES BASED ON AST'S BRAVO FAMILY ARE SOLID PRODUCTS WITH PROVEN TRACK RECORDS THAT COULD HELP IMPROVE A PROFIT MARGIN THAT HAS WILTED IN THE PAST YEAR THIS IS MEAT AND POTATOES SAID ERIC HARSLEM A DELL SENIOR VICE PRESIDENT IT MAY NOT HAVE THE MOST PANACHE BUT WE WILL SELL A LOT OF THEM DELL ALSO IS PORTRAYING THE LATITUDE MACHINES WHICH ARE PRICED FROM ABOUT 1700 AS PART OF A LARGER DEVELOPMENT CYCLE THAT WILL PRODUCE TECHNOLOGY RINGERS FOR DELL LATER THIS YEAR COMPANY EXECUTIVES SAY THEY ARE WORKING ON MORE ADVANCED MACHINES FOR RELEASE BEGINNING THIS SUMMER THAT WILL INCLUDE WIRELESS COMMUNICATIONS AND SPECIALIZED SOFTWARE INTENDED TO SET THE COMPANY APART FROM THE COMPETITION THOSE PRODUCTS ALONG WITH A TINY SUBNOTEBOOK COMPUTER ALSO UNDER DEVELOPMENT BOTH WILL BE BOUGHT FROM OTHER VENDORS LIKE AST AS WELL AS MANUFACTURED BY DELL ITSELF AS WELL AS DELL DOES IN THIS CATEGORY IS AS WELL AS DELL WILL DO AS A COMPANY SAID JOHN MEDICA A FORMER APPLE COMPUTER INC PRODUCT MANAGER HIRED LAST YEAR TO RESCUE THE DELL NOTEBOOK BUSINESS WE'VE GOT TO REGAIN OUR CREDIBILITY ANALYSTS SAY DELL IS WALKING A MARKETING TIGHTROPE IT HAS GOT TO CONVINCE PEOPLE TO BUY THE LATITUDE MACHINES EVEN AS IT PROMISES BETTER THINGS TO COME THEY SCREWED UP AND EVERYBODY KNOWS IT SAID RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORP IN FRAMINGHAM MASS THEY'RE NOT GOING TO COME OUT AND WIN THE GAME IN ONE FELL SWOOP WHAT THEY'RE COMING OUT WITH IS A DECENT PRODUCT INDEED EVEN MICHAEL DELL THE COMPANY'S FOUNDER AND CHAIRMAN SAID IT IS TOO EARLY TO DECLARE THE COMPANY FULLY RECOVERED ONE PRODUCT DOESN'T SAY DELL HAS SUCCEEDED IN THE NOTEBOOK BUSINESS MR DELL SAID BUT IT'S A START YOU'VE GOT TO START SOMEWHERE 9402220079 940222 TECHNOLOGY ADVANCED MICRO CUTS PRICES OF FLASH CHIPS TO LURE INTEL USERS SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SAID IT IS SLASHING PRICES ON SEVERAL FLASH MEMORY CHIPS BY AS MUCH AS 34 IN AN EFFORT TO LURE CUSTOMERS AWAY FROM A COMPETING TECHNOLOGY SOLD BY ARCHRIVAL INTEL CORP FLASH CHIPS WHICH HOLD DATA WHEN THE ELECTRICAL CURRENT IS TURNED OFF ARE ONE OF THE FASTESTGROWING SEGMENTS OF THE CHIP BUSINESS AMD WILL CUT THE PRICE OF FLASH CHIPS THAT STORE FOUR MEGABITS OF DATA THE CHIPS PREVIOUSLY CAME IN VERSIONS PRICED AT 20 TO 25 AND WILL NOW BE PRICED BETWEEN 15 AND 17 THAT'S ABOUT HALF THE PRICE OF AN INTEL EIGHTMEGABIT CHIP FOR THE SAME PRICE TWO AMD CHIPS WOULD STORE THE SAME AMOUNT OF DATA THE AMD PRICES WILL FALL TO LESS THAN 10 BY THE FOURTH QUARTER KEEPING PACE WITH INTEL'S PLANNED PRICE REDUCTIONS INTEL'S CHIPS REQUIRE 12 VOLTS OF ELECTRICAL CURRENT TO PROGRAM COMPARED WITH FIVE VOLTS FOR AMD'S CHIPS THE LOWER VOLTAGE AN ASSET IN APPLICATIONS SUCH AS PORTABLE COMPUTERS WHERE POWER CONSUMPTION IS A KEY ISSUE HAD PREVIOUSLY COMMANDED A PRICE PREMIUM WALT LAHTI A VICE PRESIDENT AT THE SCOTTSDALE ARIZ RESEARCH FIRM INSTAT INC ESTIMATES THAT INTEL'S FLASH SALES GREW 80 TO 372 MILLION IN 1993 SALES OF SECONDPLACE AMD SURGED FIVEFOLD TO 232 MILLION HE SAID FLASH CHIPS HAVE BEEN HAMPERED BY INCOMPATIBLE DESIGNS THAT MAKE IT DIFFICULT TO USE DIFFERENT SUPPLIERS' CHIPS INTERCHANGEABLY STEVE GROSSMAN AN AMD MARKETING MANAGER SAID ITS PRICING IS DESIGNED TO HELP MAKE ITS FIVEVOLT TECHNOLOGY INTO AN INDUSTRY STANDARD AMD ALSO WILL CUT THE PRICE OF A ONEMEGABIT FLASH CHIP OPERATING AT A SPEED OF 90 NANOSECONDS BY 34 TO 675 EACH ANOTHER VERSION OPERATING AT 120 NANOSECONDS WILL BE CUT 17 TO 650 THE COMPANY SAID IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE AMD CLOSED AT 2175 UNCHANGED 9402220078 940222 HOMESTAKE AND PRIME RESOURCES WON'T BUILD SMELTER FOR GOLD MINE SAN FRANCISCO HOMESTAKE MINING CO AND PRIME RESOURCES GROUP INC SAID THEY DECIDED NOT TO BUILD A SMELTER IN CONNECTION WITH THEIR DEVELOPMENT OF THE ESKAY CREEK GOLD MINE IN NORTHWESTERN BRITISH COLUMBIA CANADA HOMESTAKE WHICH HOLDS 54 OF ESKAY CREEK OWNER PRIME OF BRITISH COLUMBIA SAID IT PLANS TO SELL ORE FROM THE MINE TO EXISTING SMELTERS SAVING THE PROJECT ABOUT 150 MILLION IN CAPITAL COSTS UNDER THE DEVELOPMENT PLAN CAPITAL COSTS TO COMPLETE THE PROJECT ARE ABOUT 60 MILLION HOMESTAKE SAID HOMESTAKE SAID IT CHOSE NOT TO BUILD ITS OWN SMELTER AND REFINING PLANT AT THE SITE TO REDUCE THE PROJECT'S RISK TO SHAREHOLDERS THE METALLURGICALLY COMPLEX ORE AT THE MINE WOULD HAVE REQUIRED THE COMPANY TO BUILD AN AUTOCLAVE OR PRESSURE OXIDATION UNIT WHILE THAT WAS CONSIDERED ECONOMICALLY VIABLE IT IS A MORE DIFFICULT AND COMPLEX ALTERNATIVE TO A TRADITIONAL SMELTER THE PLAN ALSO PROJECTS AN ANNUAL MINING RATE OF 210000 OUNCES OF GOLD AND 94 MILLION OUNCES OF SILVER FROM AN UNDERGROUND MINE CASH COSTS ARE EXPECTED TO BE ABOUT 81 AN OUNCE IF SMELTING COSTS WERE ADDED TO REACH A FIGURE COMPARABLE TO OTHER MINING COMPANIES' CASH COSTS OF GOLD MINING THE CASH COSTS WOULD BE ABOUT 187 HOMESTAKE SAID ESKAY CREEK'S CURRENT RESERVES ARE ABOUT 23 MILLION OUNCES OF GOLD AND 102 MILLION OUNCES OF SILVER THE MINE LIFE IS EXPECTED TO BE ABOUT 10 YEARS BASED ON CURRENT RESERVES COMMERCIAL PRODUCTION IS EXPECTED TO BEGIN EARLY IN 1995 AND HOMESTAKE WILL BE THE OPERATOR 9402220077 940222 COMMODITIES PLATINUM LEADS RALLY IN INDUSTRIAL METALS BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL TURMOIL IN SOUTH AFRICA AND WORLD CURRENCY MARKETS HAS QUIETLY PUSHED THE PRICE OF THE OTHER PRECIOUS METAL PLATINUM TO ITS HIGHEST LEVEL SINCE LAST SUMMER IN THE PAST FIVE MONTHS PLATINUM FOR APRIL DELIVERY HAS CLIMBED MORE THAN 13 TO 40050 AN OUNCE ON FRIDAY FROM 353 AN OUNCE IN SEPTEMBER AND HAS SUPPLANTED GOLD AS THE LEADER OF PRECIOUSMETALS MARKETS JUST LAST WEEK THE PRICE OF THE APRIL PLATINUM FUTURES CONTRACT SURGED NEARLY 2 THE STRONG PERFORMANCES OF PLATINUM AND THE RELATED METAL PALLADIUM BOTH OF WHICH ARE USED BY THE AUTOMOTIVE INDUSTRY TO MAKE POLLUTIONCONTROL DEVICES HAVE HIGHLIGHTED BROADBASED RALLIES IN THE PRICES OF METALS WITH INDUSTRIAL USES INCLUDING COPPER AND ALUMINUM PALLADIUM FOR MARCH DELIVERY IS UP NEARLY 12 SINCE NOVEMBER TO 1352 AN OUNCE FROM 121 AND FOR VARIOUS REASONS ECONOMISTS AND ANALYSTS THINK PLATINUM AND PALLADIUM MAY CONTINUE TO LEAD METALS PRICES HIGHER IN COMING WEEKS OVER THE NEXT MONTH OR TWO I THINK WE'LL SEE CONTINUED STRENGTH SAYS FRED DEMLER METALS ECONOMIST FOR ED&F MAN I THINK PLATINUM HAS THE POTENTIAL TO TEST THE 420TO425ANOUNCE RANGE AS FOR PALLADIUM IT REALLY TOOK OFF AT THE BEGINNING OF FEBRUARY SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THERE'S VERY GOOD DEMAND FOR PALLADIUM FROM THE INTERNATIONAL AUTOMOTIVE INDUSTRY WHICH SHOULD HELP TO PUSH PRICES HIGHER FOR THE NEXT SIX MONTHS THE MAIN SOURCE OF PRICE SUPPORT FOR PLATINUM HAS BEEN VIOLENCE AND UPHEAVAL ASSOCIATED WITH THE IMPENDING ELECTIONS IN SOUTH AFRICA IN WHICH BLACK SOUTH AFRICANS WILL BE ALLOWED TO VOTE FOR THE FIRST TIME SOUTH AFRICA PRODUCES THE BULK OF THE WORLD'S PLATINUM AND MANY OF ITS MINES ARE IN BOPHUTHATSWANA A SMALL SOUTH AFRICAN HOMELAND WHOSE RESIDENTS HAVE TALKED OF SECEDING FROM THE NEWLY DEMOCRATIZED COUNTRY ABOUT 20 AN OUNCE OF THE RECENT PLATINUM PRICE RISE IS DIRECTLY THE RESULT OF FEARS ABOUT SOUTH AFRICAN PRODUCTION SAYS JEREMY COOMBES A LONDONBASED MANAGER AT METALS REFINING AND MARKETING FIRM JOHNSON MATTHEY PLC WHILE MANY ANALYSTS ARE SKEPTICAL THAT THE TURMOIL SURROUNDING THE ELECTION WILL ACTUALLY DISTURB THE FLOW OF PLATINUM OUT OF SOUTH AFRICA THE PLATINUM MARKET IS HYPERSENSITIVE EVEN TO THE THREAT OF SUCH SUPPLY DISRUPTIONS THE PRICE OF PLATINUM CAN RISE VERY AGGRESSIVELY ON SPECULATION THAT SUPPLIES MAY BE CONSTRAINED SAYS NINA LIPTON MARKET RESEARCH DIRECTOR FOR PLATINUM GUILD INTERNATIONAL A TRADE GROUP FOR EXAMPLE TALK OF SANCTIONS AGAINST SOUTH AFRICA IN 1985 AND 1986 CONTRIBUTED TO A MAJOR RUNUP ONE WAY THE POLITICAL UNCERTAINTY MAY PUSH PRICES HIGHER IS TO RESTRAIN TO SOME EXTENT THE MARKETMOVING TRADING HABITS OF COMMODITY FUNDS WHICH ARE BIG MANAGED POOLS OF INVESTORS' MONEY THESE FUNDS TEND TO TRADE ON THE BASIS OF THEIR OWN MATHEMATICAL PROJECTIONS RATHER THAN SUPPLYANDDEMAND FUNDAMENTALS BUT NEVERTHELESS GROW CAUTIOUS WHEN SUPPLY SHORTAGES ARE POSSIBLE ANALYSTS SAY UNCERTAINTY BETWEEN NOW AND THE APRIL 27 SOUTH AFRICAN ELECTIONS MAY KEEP THESE FUNDS FROM PUSHING PLATINUM PRICES DOWN BY AGGRESSIVELY SELLING FUTURES CONTRACTS AT THE MOMENT THE FUNDS ARE MAINLY ON THE LONG SIDE BUYING FUTURES CONTRACTS IN WAGERS THAT PRICES WILL CONTINUE TO RISE MR DEMLER SAYS ANOTHER FACTOR SUPPORTING THE PLATINUM MARKET HAS BEEN THE YEN'S STEEP RISE AGAINST THE US DOLLAR MS LIPTON SAYS PLATINUM FUTURES CONTRACTS ARE DENOMINATED IN DOLLARS AND THUS HAVE SUDDENLY BECOME EXTREMELY CHEAP FOR BUYERS IN JAPAN WHICH INCLUDE THE COUNTRY'S AUTOMOTIVE AND JEWELRY INDUSTRIES AND STOCKMARKET INVESTORS SEEKING A PRECIOUSMETALS HEDGE AGAINST STOCKPRICE DECLINES AND EVEN BEFORE THE FAVORABLE CURRENCY FLUCTUATION JAPANESE PLATINUM IMPORTS WERE STRONG IN 1993 JAPANESE IMPORTS TOTALED MORE THAN TWO MILLION OUNCES CLOSE TO THE RECORDSETTING 22 MILLIONOUNCE JAPANESE IMPORTS OF 1991 WHILE THE JAPANESE ECONOMY CONTINUES TO STRUGGLE AND THE MARKET THERE FOR MANY LUXURY GOODS REMAINS DEPRESSED SALES OF PLATINUM JEWELRY IN JAPAN ARE BOOMING MR COOMBES SAYS ALSO PROVIDING SUPPORT FOR BOTH THE PLATINUM AND PALLADIUM MARKETS IS THE COMPLETION OF A LONGTERM AGREEMENT UNDER WHICH JAPAN WILL BUY BIG QUANTITIES OF BOTH METALS FROM RUSSIA THE SOURCE OF MORE THAN HALF THE WORLD'S PALLADIUM PRODUCTION THE COUPLING OF JAPANESE PALLADIUM PURCHASES WITH PLATINUM PURCHASES MEANS THAT RUSSIAN PLATINUM WON'T BE DUMPED ON WORLD MARKETS AS IT HAS BEEN IN RECENT YEARS MR O'NEILL SAYS ANALYSTS CAUTION THAT PLATINUM'S RALLY MAY STALL IN MAY IF THE SOUTH AFRICAN ELECTIONS DON'T LEAD TO REAL SUPPLY SHORTAGES IF YOU LOOK AT PLATINUM STRICTLY FROM A SUPPLYDEMAND STANDPOINT GLOBALLY THERE IS NO SHORTAGE MR O'NEILL SAYS WE WILL HAVE A SURPLUS OF PRODUCTION OVER CONSUMPTION IN 1994 ANOTHER NEGATIVE MAY BE THE INCREASINGLY LACKLUSTER PERFORMANCE OF GOLD WHICH AFTER RALLYING LATE LAST YEAR HAS NOW BECOME MIRED IN A RIGID TRADING RANGE BETWEEN 375 AND 390 AN OUNCE PLATINUM FUNDAMENTALS IN THE NEAR TERM ARE MORE BULLISH THAN FOR GOLD AND SILVER MR DEMLER SAYS GOLD IS KIND OF AN ANCHOR ON THE PLATINUM MARKET AT THE MOMENT 9402220076 940222 COORS BREWING TO PAY A FINE IN COLORADO OVER AIR POLLUTION DENVER COORS BREWING CO A UNIT OF ADOLPH COORS CO WILL PAY A FINE OF 237000 TO COLORADO'S DEPARTMENT OF HEALTH FOR AIRPOLLUTION VIOLATIONS DISCOVERED BY THE BEER COMPANY COORS ALSO AGREED TO REDUCE 193 TONS OF VOCS OR VOLATILE ORGANIC COMPOUNDS ORGANIC AIR EMISSIONS FROM EVAPORATION OF BEER ALSO THE COMPANY WILL RELINQUISH TO THE STATE THE POLLUTION ALLOWANCES IT HOLDS FOR VOCS AND WILL MODIFY ITS EXISTING SULFUR DIOXIDE AND NITROGEN OXIDE EMISSION PERMITS TO HELP THE STATE WIN EPA APPROVAL FOR THE STATE'S AIRQUALITY IMPLEMENTATION PLAN THE VOC ISSUE AROSE WHEN COORS DISCOVERED THAT DESPITE STATE AND FEDERAL PUBLICATIONS TO THE CONTRARY BREWERIES ARE SUBSTANTIAL EMITTERS OF VOCS WHEN COORS TOLD THE STATE IT HAD DISCOVERED VOC EMISSIONS AT ITS BREWERY THE STATE IMMEDIATELY SLAPPED THE COMPANY WITH A 105 MILLION FINE THE STATE'S REACTION ELICITED ANGRY CRIES FROM BUSINESSMEN EDITORIAL WRITERS AND THE GOVERNOR'S OFFICE IN COLORADO WHICH FEARED THAT SUCH PUNITIVE ACTION BY THE HEALTH DEPARTMENT WOULD DISCOURAGE OTHER COMPANIES FROM SHARING POLLUTION INFORMATION WITH THE STATE THE HEALTH DEPARTMENT HOWEVER CONTINUED TO DEMAND OTHER CONCESSIONS FROM COORS IN EXCHANGE FOR LOWERING THE FINE WE THINK WE ARRIVED AT A FAIR SETTLEMENT THAT BENEFITS THE ENVIRONMENT SAID DAVE OUIMETTE A HEALTH DEPARTMENT OFFICIAL DUE TO COORS'S ACTION THE STATE AND THE EPA HAVE INFORMATION ABOUT BREWERY VOC EMISSIONS THAT COULD LEAD TO FINES AT OTHER BEER MAKERS THE HEALTH DEPARTMENT ISSUED A NOTICE OF VIOLATION TO ANHEUSERBUSCH COS FOR VOC VIOLATIONS AT ITS FORT COLLINS COLO BREWERY AFTER THE COORS DISCOVERY 9402220075 940222 AGENCY DENIES CHARTERFLIP' REQUESTS BY 4 THRIFTS CITING COMMUNITY LOANS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL OFFICE OF THRIFT SUPERVISION TOUGHENING ITS ENFORCEMENT OF COMMUNITYLENDING LAWS DENIED THE APPLICATIONS OF FOUR THRIFTS IN NEW JERSEY AND OHIO TO CHANGE THEIR CHARTERS THE FOUR SAVINGSANDLOAN INSTITUTIONS HAD APPLIED TO SWITCH FROM OTSREGULATED SAVINGS ASSOCIATIONS TO STATECHARTERED MUTUALSAVINGS BANKS BUT THE AGENCY TURNED DOWN THE CHARTERFLIP APPLICATIONS ON GROUNDS THAT THEY HAVEN'T ADEQUATELY SERVED THEIR COMMUNITIES FAILING TO MEET THEIR RESPONSIBILITIES UNDER THE COMMUNITY REINVESTMENT ACT THE OTS SAID THESE WERE ITS FIRST DENIALS OF THRIFTS' CHARTERFLIP PROPOSALS OTHER FINANCIAL REGULATORS INCLUDING THE COMPTROLLER OF THE CURRENCY AND THE FEDERAL RESERVE BOARD HAVE BEGUN TAKING A STERNER LOOK AT BANK AND OTHER LENDERS' COMMUNITY INVESTMENTS ESPECIALLY IN LOWINCOME MINORITY AREAS UNDER THE COMMUNITY REINVESTMENT ACT THE THREE NEW JERSEY THRIFTS AFFECTED BY THE OTS REJECTIONS WERE PULASKI SAVINGS BANK SPRINGFIELD GIBRALTAR SAVINGS BANK MENDHAM AND UNITED ROOSEVELT SAVINGS & LOAN ASSOCIATION CARTERET THEY WERE GIVEN NEEDS TO IMPROVE RATINGS ON THEIR LAST TWO COMMUNITY REINVESTMENT ACT COMPLIANCE EXAMINATIONS THE MOST RECENT IN 1993 MAYFLOWER SAVINGS & LOAN CO GROESBECK OHIO RECEIVED A SIMILAR RATING ON ITS LAST EXAM IN LATE 1992 IF THE THRIFTS HAD BEEN ABLE TO FLIP FROM THEIR CURRENT STATUS AS STATECHARTERED OTSREGULATED SAVINGS ASSOCIATIONS TO STATECHARTERED MUTUALSAVINGS BANKS THEY WOULD HAVE BEEN SUBJECT ONLY TO LESSSTRINGENT REGULATIONS BY THEIR STATES AND THE FEDERAL DEPOSIT INSURANCE CORP THEY ALSO COULD HAVE MADE ANOTHER CONVERSION BECOMING STOCK INSTITUTIONS WITH OHIO AND NEW JERSEY HAVING PASSED LAWS THAT FACILITATE SUCH STOCK CONVERSIONS THE FDIC AND OTS HAVE SAID THAT MANY MUTUALSAVINGS BANKS FIRST CONVERTED FROM OTSSUPERVISED SAVINGS BANKS TO STATECHARTERED SAVINGS BANKS BEFORE SWITCHING TO STOCKHOLDEROWNED INSTITUTIONS TWO WEEKS AGO THE FDIC ADOPTED INTERIM RULES AIMED AT PREVENTING INSIDER WINDFALLS AT THE EXPENSE OF DEPOSITORS WHEN STATECHARTERED MUTUALSAVINGS BANKS CONVERT TO STOCK INSTITUTIONS THE FDIC SAID IT WILL CONSIDER OTSSTYLE RULES THAT LIMIT INSIDER GAINS IN CONVERSIONS FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS AND STATECHARTERED S&LS ARE OTSREGULATED JONATHAN FIECHTER THE ACTING OTS DIRECTOR SAID THE FOUR CHARTERFLIP DENIALS WERE A SIGNAL THAT THIS AGENCY INTENDS TO ENFORCE CONSUMER PROTECTION AND FAIRLENDING LAWS TO ENSURE THAT THRIFTS PROVIDE SERVICES AND CONVENIENCES TO THEIR COMMUNITIES AS REQUIRED BY LAW PULASKI HAS ABOUT 80 OF ITS LENDING OUTSIDE ITS COMMUNITIES DOESN'T MARKET EFFECTIVELY TO LOW AND MODERATEINCOME NEIGHBORHOODS IN THOSE AREAS AND HAS LIMITED INVOLVEMENT IN COMMUNITY REINVESTMENT ACT SELFASSESSMENT THE OTS SAID IT SAID THAT GIBRALTAR HASN'T ASSESSED OR SOUGHT TO MEET THE CREDIT NEEDS OF ITS COMMUNITY HAS DONE POOR LOCAL MARKETING AND HAS PRIMARILY PROMOTED HOMEEQUITY LOANS THROUGHOUT NEW JERSEY UNITED ROOSEVELT HAS A VERY LOW LENDING LEVEL WITH ONLY SEVEN MORTGAGE LOANS IN 1992 AND DOESN'T PARTICIPATE IN COMMUNITYDEVELOPMENT PROJECTS THE OTS SAID MAYFLOWER HAS EXTENDED MORE CREDIT OUTSIDE ITS COMMUNITY THAN IN IT AND HASN'T JOINED IN ANY SPECIALCREDIT PROGRAMS WHILE ITS DIRECTORS HAVEN'T SUFFICIENTLY REVIEWED LENDING PATTERNS OR BEEN ACTIVE IN PLANNING OR CARRYING OUT EFFECTIVE COMMUNITY REINVESTMENT ACT ACTIVITIES THE AGENCY SAID 9402220074 940222 BUSINESS BRIEFS DUN & BRADSTREET HEALTHCARE INFORMATION INC PRINCETON NJ COMPLETED THE ACQUISITION OF LEXECON HEALTH SERVICE INC A CHICAGO SUPPLIER OF PATIENT OUTCOME STUDIES TO US HEALTHCARE PROVIDERS TERMS WEREN'T DISCLOSED CHEMICAL BANKING CORP NEW YORK FORMED A 100 MILLION FUND TO ENABLE NONPROFIT COMMUNITYDEVELOPMENT CORPORATIONS TO PRODUCE AFFORDABLE MULTIFAMILY HOMES OVER THE NEXT FOUR YEARS FOR LOWINCOME COMMUNITIES IN NEW YORK NEW JERSEY TEXAS AND FLORIDA FREEPORTMCMORAN RESOURCE PARTNERS LP NEW ORLEANS SAID IT EXPECTS TO RECORD A FIRSTQUARTER LOSS OF 29 MILLION FROM THE EARLY PREPAYMENT OF DEBT BY THE HOLDERS OF CERTAIN NOTES THE MINING AND PHOSPHATE PRODUCTION COMPANY HAD NET INCOME OF 586 MILLION ON YEAREARLIER INCOME AFTER RESTRUCTURING CHARGES REVENUE WAS 162 MILLION US PHYSICAL THERAPY INC HOUSTON SAID IT WILL OPEN A FREESTANDING OUTPATIENT CLINIC IN ANKENY IOWA IN MARCH BRINGING TO 29 THE NUMBER OF OUTPATIENT CLINICS OPERATED BY THE PHYSICAL THERAPY COMPANY AND ITS PARTNERS HARRIS CORP'S ATLANTA SUBSIDIARY OF LANIER WORLDWIDE INC RECEIVED A 750000 CONTRACT TO SUPPLY COPIERS TO THE FLORIDA INSTITUTE OF TECHNOLOGY 9402220073 940222 GRAZINGFEE PROPOSAL IS SOFTENED BY AGENCY IN WAKE OF PRESSURE WASHINGTON THE CLINTON ADMINISTRATION RESPONDING TO PRESSURE FROM WESTERN INTERESTS HAS SCALED BACK ITS PROPOSED INCREASE IN GRAZING FEES A REGULATION CURRENTLY BEING READIED BY THE INTERIOR DEPARTMENT WOULD PROPOSE RAISING THE MONTHLY FEE TO 277 IN THE FIRST YEAR 350 IN THE SECOND AND 396 IN THE THIRD YEAR THE FEES ARE EXPRESSED IN TERMS OF ANIMAL UNITS FORAGE FOR A COW AND A CALF OR FOR FIVE SHEEP THE CURRENT FEE IS 186 DETAILS OF THE GRAZINGFEE PLAN APPEARED IN FRIDAY'S WASHINGTON POST AN INTERIOR DEPARTMENT OFFICIAL SAID THE NUMBERS WEREN'T YET FINALIZED BUT APPEARED UNLIKELY TO CHANGE LAST AUGUST THE INTERIOR DEPARTMENT PROPOSED RAISING GRAZING FEES TO 428 BUT THAT PLAN MET WITH STRONG RESISTANCE IN THE SENATE AND A SUBSEQUENT LEGISLATIVE COMPROMISE FAILED TO OVERCOME A FILIBUSTER BY SEN PETE DOMENICI R NM INTERIOR SECRETARY BRUCE BABBITT SAID LAST FALL THAT HE WOULD REINTRODUCE HIS ORIGINAL GRAZINGFEE PLAN BUT DELAYED ACTION IN DEFERENCE TO WESTERN DEMOCRATIC GOVERNORS SUCH AS COLORADO'S ROY ROMER WHO SOUGHT CHANGES SINCE THEN ADMINISTRATION OFFICIALS HAVE INCREASINGLY PLAYED DOWN THE IMPORTANCE OF THE GRAZINGFEE INCREASE EMPHASIZING INSTEAD LANDMANAGEMENT REFORMS THAT WOULD BE INCLUDED IN THE PACKAGE UNDER THE NEW PLAN RANCHERS WHO FOLLOWED CERTAIN LANDMANAGEMENT PRACTICES WOULDN'T HAVE TO PAY THE FULL 396 FEE INSTEAD STARTING IN THE THIRD YEAR OF THE PROGRAM THEY WOULD BE ELIGIBLE FOR A 30 DISCOUNT THAT WOULD LOWER THEIR GRAZING FEE BACK TO 277 9402220072 940222 LUBRIZOL IS ORDERED TO PAY 129 MILLION TO EXXON IN DISPUTE CLEVELAND LUBRIZOL CORP SAID A FEDERAL JUDGE IN HOUSTON ORDERED IT TO PAY 129 MILLION FOR INFRINGING AN EXXON CORP PATENT IN A 1992 TRIAL A JURY RULED THAT LUBRIZOL HAD WILLFULLY INFRINGED ON EXXON'S PATENT COVERING THE USE OF COPPER IN A MOTOROIL ADDITIVE PRODUCT A SECOND JURY LATE LAST YEAR AWARDED DAMAGES OF 48 MILLION BUT THE JUDGMENT US DISTRICT COURT JUDGE NORMAN BLACK ENTERED LAST WEEK IS SUBSTANTIALLY HIGHER BECAUSE OF THE JURY'S FINDING THAT THE VIOLATION WAS WILLFUL HE COULD HAVE TRIPLED THE DAMAGES HE DOUBLED THEM TO 96 MILLION AND THE FINAL AMOUNT INCLUDES PREJUDGMENT INTEREST COURT COSTS AND EXXON'S 238 MILLION IN ATTORNEY FEES LUBRIZOL NOTED LUBRIZOL NOTED IT HAS ALREADY APPEALED THE JURY'S EARLIER FINDING THAT THE EXXON PATENT IS VALID AND THAT THERE WAS INFRINGEMENT IT SAID THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON'S DECISION ON THE PENDING APPEAL COULD AFFECT THE JUDGMENT LUBRIZOL REMOVED THE COPPER FROM ITS PRODUCTS FOLLOWING THE 1992 JURY FINDING THE COMPANY SAID IT HASN'T ESTABLISHED A RESERVE TO COVER COSTS OF THE PENALTY BECAUSE IT ANTICIPATES PREVAILING IN THE APPEAL LUBRIZOL SAID IT CONTINUES TO BELIEVE THAT NONE OF ITS PRODUCTS INFRINGED THE EXXON PATENT AND THAT THE PATENT IS INVALID 9402220071 940222 SPIRIT LAKE CHANGES NAME TORONTO SPIRIT LAKE EXPLORATIONS LTD SAID IT CHANGED ITS NAME TO VENCAN GOLD CORP EFFECTIVE IMMEDIATELY THE COMPANY SAID ITS NEW TRADING SYMBOL ON THE MONTREAL EXCHANGE IS VCG IT SAID THE NEW NAME MORE ACCURATELY REFLECTS THE EXPLORATION CONCERN'S AREAS OF OPERATION AND FOCUS WHICH ARE VENEZUELA AND CANADA 9402220070 940222 RHONEPOULENC GAMBLES ON TREATMENTS DRUG UNIT SEES POTENTIAL IN GENE CELL THERAPY BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL PARIS THE PHARMACEUTICAL INDUSTRY HAS BEEN TAKING PLENTY OF LUMPS LATELY BUT IT STILL SEEMS A PARAGON OF PROSPERITY TO MICHEL DE ROSEN MR DE ROSEN SPENT FIVE TURBULENT YEARS AT THE HELM OF RHONEPOULENC SA'S FIBERS AND POLYMERS DIVISION BEFORE BEING NAMED CHIEF OPERATING OFFICER OF PHARMACEUTICAL UNIT RHONEPOULENC RORER INC LATE LAST YEAR WHEN YOU COME FROM FIBERS AND POLYMERS TO PHARMACEUTICALS HE SAYS WITH A CHUCKLE YOU ARE FLABBERGASTED BY THE WAY DRUG PEOPLE ARE DEPRESSED WITH GOVERNMENTS AND OTHER PROVIDERS AROUND THE WORLD TAKING DRACONIAN ACTION TO CURB HEALTHCARE COSTS MANY ANALYSTS FRET THAT DRUG MAKERS' HALCYON DAYS ARE OVER BUT MR DE ROSEN AND OTHER RHONEPOULENC EXECUTIVES ARGUE THAT EVEN REDUCED DRUGINDUSTRY GROWTH RATES OF 6 TO 8 CAN PRODUCE FAT PROFITS INDEED WITH MANY MAJOR DISEASES LACKING CURES INNOVATIVE MEDICINES WILL COMMAND PROFIT MARGINS AS LUSH AS DURING THE HEADY 1980S THE EXECUTIVES ADD TWO NOVEL THOUGH UNPROVEN TREATMENTS ARE CELL AND GENE THERAPY PROCESSES ON WHICH RHONEPOULENC IS BETTING HUNDREDS OF MILLIONS OF DOLLARS IN CELL THERAPY CELLS ARE REMOVED FROM A PATIENT TREATED OUTSIDE THE BODY THEN REINFUSED AS A TREATMENT FOR CANCER OR AIDS GENE THERAPY ALSO IN THE EXPERIMENTAL STAGE PROMISES TO GO A STEP FURTHER BY ADDING MISSING GENES OR TURNING OFF DEFECTIVE ONES THAT CAUSE DISEASE IT'S A BOLD NEW FORM OF MEDICINE AND ONE WITH HUGE COMMERCIAL POTENTIAL THOUGH ANALYSTS EXPECT THE MARKET TO GROW SLOWLY AT FIRST CELL THERAPY DESPITE ITS CURRENTLY LIMITED USES COULD REPRESENT A 12 BILLION ANNUAL MARKET BY THE END OF THE DECADE OR AS MUCH AS 3 BILLION IF REGULATORY APPROVAL AND PRODUCT DEVELOPMENT ADVANCE RAPIDLY A MARKET ANALYSIS BY US CONSULTING FIRM POV INC PREDICTED THE LARGER GOAL IS TO FIND TREATMENTS FOR COMMON AILMENTS SUCH AS BREAST LUNG AND COLON CANCERS AND OTHER DISEASES GENE THERAPY COULD GROW INTO A WHOPPING 50 BILLIONAYEAR BUSINESS BY 2010 POV BELIEVES RHONEPOULENC GRABBED AN INSIDE TRACK IN CELL AND GENE THERAPY THROUGH A WORLDWIDE COLLABORATION WITH APPLIED IMMUNE SCIENCES INC A PIONEER IN BOTH FIELDS IN A TRANSACTION THAT RAISED EYEBROWS IN THE PHARMACEUTICAL INDUSTRY LAST YEAR RHONEPOULENC RORER PAID 115 MILLION FOR A 37 STAKE IN AIS AND AN OPTION TO BOOST THE STAKE TO A CONTROLLING 60 BEFORE 1997 RHONEPOULENC'S TOTAL INVESTMENT IN THE US AFFILIATE COULD APPROACH 400 MILLION BY THE END OF THE DECADE COMPANY RESEARCH DIRECTOR MANFRED KAROBATH SAYS CELLTHERAPY AND GENETHERAPY PROJECTS ARE GOBBLING UP 10 OF HIS 560 MILLION ANNUAL BUDGET BUT HE PLEDGES ALL THE SUPPORT THE PROGRAM NEEDS ACKNOWLEDGING THE FINANCIAL RISK OF THE BUSINESS MANY ANALYSTS AGREE LIFE IS GOING TO CHANGE IN THE PHARMACEUTICAL INDUSTRY AND IF YOU'RE NOT IN THE TOP 10 YOU'VE GOT TO DO SOMETHING DRAMATIC OR YOU'RE NOT GOING TO MAKE THE CUT IN FIVE YEARS SAYS JO WALTON A LONDONBASED ANALYST FOR LEHMAN BROTHERS MOST BIG PHARMACEUTICAL COMPANIES REMAIN WARY OF CELL AND GENE THERAPY WHILE DOZENS OF FLEDGLING UPSTARTS HOPE TO EXPLOIT THE TECHNIQUES THE ONLY OTHER MAJOR CELLTHERAPY ACQUISITIONS HAVE BEEN BY SWITZERLAND'S SANDOZ AG AND CORANGE LTD THE BERMUDABASED PARENT OF GERMANY'S BOEHRINGER MANNHEIM GROUP WHICH LATE LAST YEAR UNVEILED A 220 MILLION ALLIANCE WITH SEATTLEBASED CELLPRO INC ONE OF AIS'S BIGGEST RIVALS MAYBE RHONEPOULENC JUST SAW THE WOLVES EARLIER BUT THEY'VE BEEN IMAGINATIVE AND DONE THE SORT OF DEALS OTHER PEOPLE WOULDN'T SAYS MS WALTON THEIR VIEW IS THAT CELL THERAPY COULD BE A WHOLE DIFFERENT WAY OF PROVIDING HEALTH CARE BY THE END OF THE DECADE AND THEY'VE BOUGHT INTO A BANDWIDTH OF TECHNOLOGIES NOT SIMPLY A BAG OF PRODUCTS THE VANGUARD OF ITS STRATEGY IS A STRING OF CELLTHERAPY AND GENETHERAPY CENTERS LEADING ANOTHER REVOLUTION IN THE HEALTHCARE INDUSTRY RHONEPOULENC RORER AND AIS WILL OWN AND OPERATE THESE CLINICS AS WELL AS DEVELOP SOME OF THE THERAPIES USED IN THEM DR KAROBATH IS CONFIDENT THE CENTERS WILL DEAL A KNOCKOUT BLOW TO PROSPECTIVE RIVALS HOW MANY ORGANIZATIONS WILL THERE BE IN THE WORLD PROVIDING THIS SERVICE WE THINK TWO MAYBE THREE AND FROM THEN ON IT WILL BE VERY TOUGH TO GET IN HE SAYS IRONICALLY IT WAS A DESIRE TO REDUCE RISK THAT FUELED AGGRESSIVE EXPANSION OF RHONEPOULENC'S LACKLUSTER PHARMACEUTICAL BUSINESS IN THE LATE 1980S AN ACQUISITION SPREE OF MORE THAN 3 BILLION VAULTED THE FRENCH CHEMICAL GIANT'S DRUGS BUSINESS FROM A SLEEPY DOMESTIC PLAYER TO A TRANSATLANTIC POWERHOUSE IN THE FIRST NINE MONTHS OF 1993 HEALTHCARE OPERATIONS GREW TO ALMOST 40 OF THE GROUP'S SALES AND 90 OF ITS OPERATING PROFIT FROM 29 OF SALES AND 44 OF PROFIT FOR 1990 IT'S BASICALLY WHAT SAVED US IN THIS DOWNTURN OF THE CHEMICALS CYCLE SAYS IGOR LANDAU AN EXECUTIVE MANAGEMENT COMMITTEE MEMBER WHO OVERSEES HEALTHCARE ACTIVITIES THE CRUCIAL MOVE WAS A MERGER WITH RORER GROUP INC OF THE US IN 1990 SECURING A COVETED FOOTHOLD IN THE HUGE US MARKET BUT GOVERNMENT EFFORTS IN GERMANY AND ITALY TO SHRINK NATIONAL DRUG BILLS SLASHED 200 MILLION FROM RHONEPOULENC RORER'S 1993 SALES FULLYEAR REVENUE WAS VIRTUALLY FLAT AT 4 BILLION WHILE PRETAX PROFIT INCHED UP ONLY 15 TO 590 MILLION AND MANAGEMENT CAUTIONS THAT 1994 WILL BE A YEAR OF TRANSITION WHICH ANALYSTS INTERPRET AS ANEMIC PROFIT GROWTH SALES LAST YEAR ALREADY WERE 24 BELOW FORECASTS BY MANAGEMENT AT THE TIME OF THE MERGER WHILE THE PRETAX PROFIT SHORTFALL WAS AN EMBARRASSING 35 FOR INVESTORS THIS IS A SORE SPOT BEFORE BUYING RORER GROUP RHONEPOULENC HAD BEEN SADDLED WITH BOTH HEAVY EXPOSURE TO SLOWGROWING EUROPEAN MARKETS AND AN AGING PORTFOLIO OF DRUGS NO SINGLE PRODUCT HAD ANNUAL SALES ABOVE 250 MILLION AND ITS THREE TOP SELLERS SUCH AS THE ANTACID MAALOX WERE AT LEAST 20 YEARS OLD COMING UP WITH NEW PRODUCTS AND BOLSTERING RESEARCH CLOUT WERE KEY MOTIVES FOR THE RORER DEAL BUT EVEN THOUGH DR KAROBATH'S GENERAL RESEARCH BUDGET HAS GROWN 20 SINCE THE MERGER MOST ANALYSTS AGREE THERE ARE NO POTENTIAL BLOCKBUSTER DRUGS IN THE PIPELINE IT WILL TAKE YEARS FOR THAT INVESTMENT TO GENERATE NEW DRUGS CELL THERAPY COULD PAY OFF MUCH SOONER WHILE RESEARCHERS IN THE AIS UNIT DEVELOP AND TEST CELL THERAPIES A JOINT VENTURE CALLED APPLIED CARE LABORATORIES IS RUSHING TO SET UP RHONEPOULENC RORER'S NETWORK OF CELLTHERAPY CENTERS IN THE US EUROPE AND EVENTUALLY JAPAN APPLIED CARE EXPECTS TO OPEN ITS FIRST FACILITY IN A LOS ANGELES SUBURB IN MAY AND A PILOT OPERATION AT THE INSTITUT PASTEUR IN PARIS WILL RELOCATE BY THE END OF THE YEAR THE PARIS OPERATION IS PART OF A JOINT VENTURE BETWEEN AIS AND CAREMARK INTERNATIONAL INC DEVOTED TO AIDSRELATED CELL THERAPY SOME ANALYSTS FRET THAT RHONEPOULENC AND AIS ARE RUSHING SPENDING HEAVILY TO GET THEIR CENTERS READY BEFORE THE FIRST CELL THERAPY HAS EVEN WON REGULATORY APPROVAL A FULLFLEDGED CELLTHERAPY CENTER WITH CAPACITY FOR TREATING 20000 PATIENTS A YEAR WILL COST AS MUCH AS 20 MILLION THOUGH INITIAL INVESTMENT WILL BE CONSIDERABLY LOWER AND SNAGS IN REGULATORY APPROVALS COULD BALLOON CAPITAL COSTS NONETHELESS A KEY US FOOD AND DRUG ADMINISTRATION RULING LAST YEAR GIVING CELLTHERAPY CENTERS THE REGULATORY STATUS OF MINIPHARMACEUTICAL FACTORIES WAS A POTENTIAL WINDFALL MOST ANALYSTS HAD EXPECTED THE FDA TO LIMIT ITS SCRUTINY TO DEVICES USED BY CELLTHERAPY DEVELOPERS TO SEPARATE AND PROCESS CELLS AIS ALSO HAS REACHED AN ADVANCED STAGE OF CLINICAL TRIALS OF A CELL THERAPY AGAINST KAPOSI'S SARCOMA AN OPPORTUNISTIC INFECTION ACCOMPANYING AIDS ANOTHER AIS THERAPY HAS HAD PROMISING EFFECTS IN BONEMARROW TRANSFUSIONS TO TREAT LEUKEMIA DR KAROBATH EXPECTS SEVERAL GENETHERAPY PROGRAMS TO GET UNDER WAY THIS YEAR POTENTIAL APPLICATIONS ARE VAST BUT SEVERAL TECHNOLOGICAL HURDLES MUST BE CLEARED BEFORE CLINICAL WORK ON GENE THERAPY GAINS MOMENTUM ON A BROAD SCALE ANALYSTS SAY 9402220069 940222 PINAULTPRINTEMPS TO ABSORB MAIL UNIT BY END OF 2ND QUARTER SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH RETAIL AND DISTRIBUTION GROUP PINAULTPRINTEMPS SA SAID IT WOULD MERGE WITH ITS 544CONTROLLED LA REDOUTE SA MAILORDER UNIT BY THE END OF THE SECOND QUARTER THE MERGER WILL INVOLVE AN EXCHANGE OF LA REDOUTE SHARES FOR PINAULTPRINTEMPS SHARES AT PAR BUT FIRST CURRENT PINAULTPRINTEMPS SHAREHOLDERS WILL RECEIVE ONE FREE SHARE FOR EVERY 10 HELD LA REDOUTE WILL BE RECREATED AS A 100OWNED UNIT SHARE TRADING IN BOTH PINAULTPRINTEMPS AND LA REDOUTE WAS SUSPENDED FRIDAY ON THE PARIS BOURSE PENDING THE ANNOUNCEMENT PINAULTPRINTEMPS ENDED THURSDAY AT 995 FRANCS 169 A SHARE WHILE LA REDOUTE SETTLED AT 960 FRANCS PINAULTPRINTEMPS OFFICIALS DECLINED TO SAY WHAT THE NEW COMPANY'S CAPITAL WOULD LOOK LIKE AFTER THE OPERATION OTHER THAN TO SAY THAT ARTEMIS THE PINAULT FAMILY HOLDING COMPANY THAT CONTROLS PINAULTPRINTEMPS WOULD HAVE MORE THAN ONETHIRD OF THE COMPANY'S CAPITAL AND VOTING RIGHTS ARTEMIS HOLDS 522 OF PINAULTPRINTEMPS' VOTING RIGHTS AND 453 OF ITS CAPITAL OTHER SHAREHOLDERS ARE CLINVEST A UNIT OF CREDIT LYONNAIS SA WITH 45 OF THE VOTING RIGHTS AND 39 OF THE CAPITAL CREDIT LYONNAIS HAS BEEN THE FAITHFUL BANKER OF FRANCOIS PINAULT THE BRETON BUSINESSMAN WHO TOOK OVER RETAILER AU PRINTEMPS SA IN A CONTESTED TAKEOVER A FEW YEARS AGO THAT LEAD TO A REFORM OF FRENCH TAKEOVER LAW TO BETTER PROTECT MINORITY INTERESTS VARIOUS OTHER BANKS AND INSURANCE COMPANIES CONTROL 85 OF THE VOTING RIGHTS AND 74 OF THE CAPITAL 9402220068 940222 WORK & FAMILY BY SUE SHELLENBARGER WORKERS' STRESS OVER FAMILY PROBLEMS PEAKS WITH HARSH WINTER WEATHER IN THE EAST AND THE EARTHQUAKE IN THE WEST THE COLD AND QUAKE HAVE SHATTERED THE PRECARIOUS BALANCE BETWEEN WORK AND FAMILY FOR MANY PEOPLE OPERATORS OF WORKFAMILY HELP LINES INCLUDING PARTNERSHIP FOR ELDER CARE NEW YORK PARTNERSHIP GROUP LANSDALE PA AND WORKING SOLUTIONS PORTLAND ORE REPORT INCREASES OF 6 TO 100 IN STRESSRELATED CALLS ON A STRESS SCALE OF ONE TO 10 MORE PEOPLE ARE AT THE EIGHT LEVEL THAN WE'VE HEARD IN THE PAST SAYS MARY KAY LEONARD A VICE PRESIDENT OF WORK/FAMILY DIRECTIONS A BOSTON CONSULTANT IN NEW YORK MANY WORKERS WORRY ABOUT AGED RELATIVES TRAPPED IN THEIR HOMES BY SNOW AND ICE SAYS PARTNERSHIP FOR ELDER CARE AN EMPLOYER CONSORTIUM ONE WALL STREET EMPLOYEE WAS PULLING OUT HIS HAIR BECAUSE HIS RECENTLY WIDOWED FATHER IN CHINATOWN WAS CALLING HIM SEVERAL TIMES A DAY AT WORK ASKING HIM TO VISIT SAYS NORA O'BRIEN A PARTNERSHIP SOCIAL WORKER WHO FOUND AN EMERGENCYMEAL SERVICE AND A COMPANION TO VISIT THE FATHER THROUGHOUT THE EAST SCHOOL SHUTDOWNS ARE FORCING EMPLOYEES TO BRING KIDS TO THE OFFICE PROMPTING SEVERAL EMPLOYERS TO ASK FOR HELP SETTING UP SNOWDAY CHILDCARE PROGRAMS MS LEONARD SAYS WE ALSO HEAR LOTS OF STORIES ABOUT LOST MITTENS AND TORN SNOWSUITS WHICH BECOME A BIG DEAL BECAUSE PARENTS ARE ALREADY AT THE END OF THEIR ROPE IN LOS ANGELES WRECKED COMMUTING PATTERNS PREVENT MANY FROM MAKING CHILDCARE CONNECTIONS ONE MANAGER CALLED THE PARTNERSHIP GROUP TO COMPLAIN ABOUT AN EMPLOYEE WHO SHAVED AN HOUR OFF HIS WORK DAY TO ALLOW EXTRA TRAVEL TIME TO HIS CHILDCARE CENTER COUNSELORS NEGOTIATED A PLAN FOR HIS CHILD TO STAY AT THE CENTER LONGER EACH DAY MANY CHILDREN HAVE BEEN TOO TRAUMATIZED TO RETURN TO SCHOOL OR CHILD CARE ONE LOS ANGELES FATHER CALLED WORK/FAMILY DIRECTIONS WITH HIS WIFE AND SLEEPLESS TEARFUL SEVENYEAROLD ON THE LINE ASKING FOR REASSURANCE FOR THE CHILD BY SUPPORTING WORKERS WHO CARE FOR AGED RELATIVES EMPLOYERS COULD PLAY A CRUCIAL ROLE IN IMPROVING LONGTERM HEALTH CARE FOR ELDERLY AMERICANS A GENERAL ACCOUNTING OFFICE STUDY SAYS FAMILY MEMBERS' ABILITY TO CARE FOR AN AGED RELATIVE IS A LEADING FACTOR IN PREVENTING NURSINGHOME ADMISSIONS THE STUDY SAYS RELATIVES' AVAILABILITY TO HELP WHICH DEPENDS PARTLY ON SUPPORT THEY GET FROM OTHERS CAN HAVE A BIGGER IMPACT ON WHETHER AN AGED PERSON GOES TO A NURSING HOME THAN THE ELDER'S CONDITION RESEARCH SHOWS FLEXIBLE SCHEDULES AND ELDERCARE INFORMATION SERVICES ARE IMPORTANT EMPLOYER BENEFITS FOR CAREGIVERS THE STUDY SAYS BUT IT SAYS WHILE MORE THAN 23 MILLION WORKING AMERICANS HAVE ACCESS TO THOSE BENEFITS THEY AREN'T WIDELY USED FOR ELDER CARE WHAT'S LACKING IS THE EMPLOYERS PUTTING THE PROGRAMS TOGETHER STRATEGICALLY AND PROMOTING THEM FOR ELDERCARE PURPOSES SAYS JAMES MUSSELWHITE A GAO SENIOR SOCIAL SCIENCE ANALYST WHO HELPED WRITE THE REPORT MANY COMPANIES ALSO LIMIT ELDERCARE PROGRAMS TO FULLTIME AND PERMANENT STAFF SINCE MOST LONGTERM CARE IS PROVIDED BY FAMILY AND FRIENDS AN EMPLOYER'S SUPPORT IS EXTREMELY IMPORTANT MR MUSSELWHITE SAYS WITHOUT FAMILY MEMBERS' CONTINUED ABILITY TO CARE FOR THE GROWING NUMBER OF FRAIL ELDERS WE WOULD BE IN VERY BIG TROUBLE IN PROVIDING LONGTERM CARE HE ADDS EMPLOYERS PLAY A GROWING ROLE IN COLLECTING CHILD SUPPORT CREATING A MOUNTAIN OF PAPERWORK IN AN EFFORT TO LOCATE DEADBEAT PARENTS AND MAKE THEM PAY UP 14 STATES HAVE ENACTED LAWS REQUIRING EMPLOYERS TO REPORT NEW HIRES AND 18 STATES ARE CONSIDERING SIMILAR MEASURES A UNIVERSITY OF WISCONSIN STUDY SHOWS THAT SUCH NEWHIRE REPORTING INCREASES CHILDSUPPORT COLLECTIONS BY 20 IN THE FIRST YEAR BUT THE REQUIREMENTS VARY SO MUCH THAT COMPLIANCE IS A HEADACHE FOR MULTISTATE EMPLOYERS SAYS DEBERA SALAM OF THE AMERICAN SOCIETY FOR PAYROLL MANAGEMENT A GROUP OF 450 BIG EMPLOYERS SOME STATES REQUIRE NEWHIRE REPORTING WITHIN FIVE DAYS WHICH IS DIFFICULT FOR BIG DECENTRALIZED COMPANIES OTHERS REQUIRE REPORTING OF TEMPORARY HIRES AND PAYMENTS TO INDEPENDENT CONTRACTORS SOME TEMPORARY AGENCIES TURN OVER 16000 EMPLOYEES IN A YEAR SO YOU COULD BE CALLING IN 100 PEOPLE EVERY DAY MS SALAM SAYS WE CAN SEE THAT THIS INFORMATION IS BENEFICIAL BUT NEWHIRING REPORTING CAN GET VERY COSTLY FOR EMPLOYERS A FEDERAL MEASURE TO STANDARDIZE THE REPORTING IS TIED UP IN THE WELFAREREFORM DEBATE THE STATE LAWS COME ATOP A FEDERAL MANDATE THAT EFFECTIVE THIS YEAR REQUIRES EMPLOYERS TO WITHHOLD ALL CHILDSUPPORT PAYMENTS FROM NONCUSTODIAL PARENTS' PAYCHECKS UNLESS PARTIES TO A DIVORCE AGREE OTHERWISE THE LAW HAS ONE AUTO MAKER CUTTING 6000 CHILDSUPPORT CHECKS EVERY PAY PERIOD THE MS FOUNDATION IS PLANNING A LITTLE SOMETHING FOR THE BOYS ON ITS SECOND ANNUAL TAKE YOUR DAUGHTERS TO WORK DAY APRIL 28 IT'S OFFERING LESSON PLANS FOR TEACHERS OF BOYS LEFT IN THE CLASSROOM EXPLAINING RESEARCH SHOWING GIRLS HAVE LOWER SELFESTEEM ORGANIZERS ALSO URGE TRIPS TO CHILDCARE CENTERS TO TEACH BOYS ABOUT THE WORK OF CARING MICROSOFT'S EMPLOYEE EMAIL NETWORK FOR PARENTS BABY ALIAS SHARES TIPS ON PEDIATRICIANS CHILD CARE AND CLOTHVSPAPER DIAPERS THE MOST CONTROVERSIAL QUESTION OF THE MOMENT SHOULD YOU LET YOUR KIDS SLEEP WITH YOU 9402220067 940222 ABREAST OF THE MARKET LONGAWAITED CORRECTION IS UNDER WAY SOME ARGUE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK MARKET INVESTORS GOT A SEVERE CASE OF THE JITTERS LAST WEEK THE DOW JONES INDUSTRIAL AVERAGE SHOT HIGHER IN EARLY TRADING ON SEVERAL DAYS ONLY TO PLUMMET LATER IN THOSE SESSIONS ALTHOUGH THE INDUSTRIAL AVERAGE ENDED THE WEEK JUST MARGINALLY LOWER AND BARELY MORE THAN 2 BELOW ITS ALLTIME HIGH SOME ANALYSTS ARE NOW PROCLAIMING THAT THE LONGAWAITED STOCKMARKET CORRECTION HAS ARRIVED THE CULPRIT FOR THE MARKET'S DOWNTURN THESE ANALYSTS SAY IS THE RECENT RISE IN BOTH SHORT AND LONGTERM INTEREST RATES AND FEARS THAT FURTHER INCREASES ARE COMING MORE SANGUINE FORECASTERS ARGUE HOWEVER THAT GIVEN THE HEALTH OF THE ECONOMY AND THE LOW STARTING POINT FOR THE RISE IN RATES A FULLBLOWN CORRECTION ISN'T YET IN THE CARDS AND CERTAINLY THE BULL MARKET REMAINS INTACT THEY CONTEND AMONG THE PESSIMISTS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAYS THE LATEST MARKET DECLINES REFLECT INVESTORS' REALIZATION THAT INTEREST RATES HAVE BEEN RISING FOR THREE MONTHS AND WILL CONTINUE TO CLIMB I'VE BEEN SAYING FOR SOME TIME THAT I EXPECT A 15 CORRECTION ON THE DOW FROM ITS HIGH SAYS MR MCALINDEN YOU NEVER REALLY KNOW WHEN THESE THINGS BEGIN BUT AT THIS POINT THE EVIDENCE IS PRETTY OVERWHELMING WE'RE INTO IT MR MCALINDEN NOTES THAT LONGTERM INTEREST RATES HIT THEIR LOW IN OCTOBER AND HAVE BEEN CLIMBING EVER SINCE HE SAYS THAT INFLATION TENDS TO HIT ITS LOW ROUGHLY ABOUT FOUR MONTHS AFTER LONG RATES SUGGESTING THAT LAST WEEK'S REASSURING REPORT ON CONSUMER PRICES MAY HAVE BEEN THE LOW FOR INFLATION WITH INFLATION RISING ACCORDING TO MR MCALINDEN'S SCENARIO INTEREST RATES WILL CLIMB TOO ROILING THE STOCK MARKET HE SEES THE CORRECTION LASTING UNTIL THE 1994 FOURTH QUARTER STOCKS ARE EVEN MORE VULNERABLE TO THE PROSPECT OF RISING RATES BECAUSE THE STOCK MARKET'S CLIMB HAS BEEN DRIVEN FOR SO LONG BY FALLING RATES HE SAYS GAIL DUDACK MARKET STRATEGIST AT SG WARBURG IS PREDICTING A 10 DECLINE IN STOCK PRICES SHE HAS BEEN LOWERING HER HOLDINGS OF STOCK SLIGHTLY SINCE LATE DECEMBER AND NOW HAS 10 OF HER PORTFOLIO IN CASH LAST WEEK'S STOCK MARKET PERFORMANCE ONLY CONFIRMED HER VIEW THAT THE CORRECTION IS UNDER WAY EVERYBODY HAS BEEN TALKING ABOUT US BEING IN THE BEST OF ALL WORLDS AND SO MUCH OF THAT HAS BEEN FACTORED INTO THE MARKET SHE SAYS THAT HAS LEFT INVESTORS WIDE OPEN FOR DISAPPOINTMENT MS DUDACK ARGUES THAT CASH COMING INTO THE MARKET ISN'T LIKELY TO REMAIN AT THE HIGH LEVELS OF RECENT YEARS AS CASH INFUSIONS INTO STOCKS MODERATE THERE WILL BE LESS FUEL TO DRIVE PRICES HIGHER THE PUBLIC HAS MORE STOCKS AS A PERCENTAGE OF THEIR PORTFOLIOS THAN THEY'VE HAD IN 20 YEARS AND THAT CYCLE IS MATURING SHE SAYS AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF SEES A DOWNTURN OF SMALLER PROPORTIONS AMOUNTING TO NO MORE THAN A 6 DECLINE FROM THE DOW'S HIGH MR MOORE SEES EVIDENCE OF THE DECLINE IN SEVERAL TECHNICAL INDICATORS AMONG THEM THE POOR RATIO OF STOCKS HITTING NEW HIGHS TO THOSE FALLING TO NEW LOWS HE REMAINS UPBEAT ABOUT THE OVERALL TREND IN STOCK PRICES PARTLY BECAUSE OF THE INTERESTRATE ENVIRONMENT HE IS LESS WORRIED THAN MANY ANALYSTS THAT THE STOCK MARKET WILL CRACK BECAUSE OF FURTHER BOOSTS IN SHORTTERM INTEREST RATES THE FEDERAL RESERVE HAS BEEN MORE STIMULATIVE OVER THE LAST SEVERAL YEARS THAN IT HAS EVER BEEN SINCE WORLD WAR II MR MOORE SAYS SO THERE'S A LOT OF ROOM FOR THE FED TO INCREASE RATES WITHOUT THREATENING THE ATTRACTIVENESS OF COMMON STOCKS IT MAY BE PREMATURE TO PROCLAIM THE START OF A STOCK MARKET CORRECTION SAYS JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO HE CONTENDS THAT AS LONG AS SHORTTERM INTEREST RATES RISE GRADUALLY THE MARKET CAN CONTINUE TO CLIMB BUT ANOTHER FED RATE BOOST FOLLOWING CLOSELY ON THE LAST WOULD FURTHER RATTLE THE STOCK MARKET HE SAYS THE QUESTION IS WHETHER OR NOT THE FED MOVES AGAIN SOON HE ASSERTS IF IT'S SOONER RATHER THAN LATER THAT SUGGESTS THE FED HAS UNCOVERED SOME INFLATION PROBLEM THAT IT'S TRYING TO CORRECT BUT MR BATTIPAGLIA BELIEVES THE INFLATION WORRIES ARE OVERDONE INDEED EVEN WITH THE CONCERNS ON FRIDAY GOLD AND OIL PRICES FELL SUGGESTING INFLATION MAY NOT BE THE BOGEYMAN PESSIMISTS FEAR MR BATTIPAGLIA EXPECTS STOCK PRICES TO RESUME THEIR UPWARD TREND WITH THE DOW INDUSTRIALS BREAKING THROUGH THE 4000 LEVEL THIS YEAR OUR STRATEGY IS TO REMAIN INVESTED HE SAYS THIS BULL MARKET IS NOT OVER THE CURRENT STOCK MARKET JITTERS ARE NOTHING MORE THAN THE USUAL EXPERIENCE AFTER A FED RATE INCREASE AND NOTHING TO WORRY ABOUT SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA MR HAYS ARGUES THAT IT WAS EXPECTED THAT AFTER THE RATE INCREASE MOST ANALYSTS WOULD BEGIN PREDICTING HIGHER INFLATION HIGHER INTEREST RATES AND A SHARP CORRECTION ALL THIS HAS ENCOURAGED MY ENTHUSIASM FOR STOCKS NOT DIMINISHED IT MR HAYS SAYS WITHIN THE NEXT WEEK OR TWO THE STOCK MARKET WILL GET BACK ON A PERSISTENT UPTREND BASED ON IMPROVING EARNINGS MR HAYS DISMISSES THE DOOMSAYERS ANNOUNCING THE START OF A CORRECTION THIS ISN'T A CORRECTION IT'S A PAUSE MAYBE HE SAYS WHEN YOU HAVE MONETARY CONDITIONS LIKE THIS YOU NEVER HAVE A CORRECTION OF MORE THAN 4 AND THIS IS BARELY 2 EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE URGES INVESTORS TO KEEP THEIR EYE ON THE ECONOMIC FUNDAMENTALS HE SAYS THE STERLING CONSUMER PRICE REPORT LAST WEEK COMBINED WITH THE RECOVERY'S CONTINUED STRENGTH ADD UP TO A STRONG POSITIVE ENVIRONMENT FOR STOCKS THIS TOO WILL PASS THE FUNDAMENTALS WILL EVENTUALLY WIN OUT MR YARDENI ADDS IN THE LONG TERM I'M STILL VERY BULLISH THE DOW WILL BE GOING OVER 4000 WITHIN MONTHS AND MOVING HIGHER FROM THERE PLUNGING BOND PRICES KNOCKED STOCK PRICES LOWER FOR THE SECOND DAY THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3518 POINTS TO 388746 ITS LOWEST CLOSE SINCE THE 96POINT PLUNGE ON FEB 4 STANDARD & POOR'S 500STOCK INDEX LOST 265 TO 46769 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 151 TO 25987 THE NASDAQ COMPOSITE INDEX SLIPPED 139 TO 78885 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX DROPPED 351 TO 47095 FOR THE WEEK THE INDUSTRIAL AVERAGE SLIPPED SEVEN POINTS OR 02 AND THE S&P FELL 249 OR 05 BUT THE NASDAQ COMPOSITE JUMPED 746 OR NEARLY 1 WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 037 TO 11579 THE SELLOFF IN BONDS LEFT LONGTERM INTEREST RATES AT THEIR HIGHEST LEVELS SINCE JULY 1993 THE TREASURY'S 30YEAR BOND FELL MORE THAN A POINT TO YIELD 662 THE DOW JONES UTILITIES AVERAGE WHICH IS REGARDED AS A LEADING INDICATOR FOR INTEREST RATES AND THEREFORE THE STOCK AND BOND MARKETS SANK 356 OR 168 TO 20854 ITS LOWEST LEVEL SINCE APRIL 1992 VENTRITEX PLUNGED 10 1/4 OR 28 TO 26 3/4 ON NASDAQ ANALYSTS AT ROBERTSON STEPHENS AND FURMAN SELZ REMOVED BUY RATINGS FROM THE STOCK AMID CONCERN ABOUT A VISIT TO THE COMPANY BY OFFICIALS OF THE FOOD AND DRUG ADMINISTRATION THE NATURE OF THE VISIT WASN'T REPORTED A SPOKESMAN FOR THE AGENCY WOULDN'T COMMENT SPOKESMEN FOR THE SUNNYVALE CALIF MEDICAL DEVICE MANUFACTURER COULDN'T BE REACHED MEDIA VISION SKIDDED 7 5/8 TO 35 1/4 ON NASDAQ EVEN THOUGH THE COMPANY SAID ITS EARNINGS JUMPED TO 53 CENTS A SHARE IN THE FOURTH QUARTER FROM 18 CENTS A YEAR AGO ON A 188 REVENUE GAIN ANALYSTS SAID SOME INVESTORS WERE EXPECTING EVEN STRONGER RESULTS A RISE IN INVENTORIES AT THE MULTIMEDIA PRODUCTS MAKER ALSO WAS CITED TWO GIANT NEW CLOSEDEND MUTUAL FUNDS WERE AMONG THE MOSTACTIVE BIG BOARD ISSUES BOTH FINISHING AT THEIR INITIAL OFFERING PRICE OF 15 A SHARE THE TWO WHICH WILL BOTH INVEST IN FOREIGN SECURITIES HAVE A TOTAL COMBINED MARKET VALUE OF MORE THAN 16 BILLION GLOBAL PRIVATIZATION FUND WHICH WILL INVEST AROUND THE WORLD IN BUSINESSES BEING SOLD BY GOVERNMENTS HAD AN OFFERING OF 745 MILLION SHARES MORGAN STANLEY INDIA INVESTMENT FUND WHICH WILL BUY SHARES OF COMPANIES BASED IN THAT COUNTRY HAD A 357 MILLIONSHARE OFFERING INLAND STEEL SHED 1 3/4 TO 33 3/8 AFTER CJ LAWRENCE DEUTSCHE BANK SECURITIES CUT A RATING ON THE COMPANY'S STOCK TO HOLD FROM BUY THE SECURITIES COMPANY CITED CONCERNS THAT DISCOUNTING BY FOREIGN STEEL COMPANIES COULD HURT US PRODUCERS XEROX FELL 1 5/8 TO 98 5/8 AFTER LOSING 2 1/2 THURSDAY SEVERAL ANALYSTS ATTRIBUTED THE SELLING TO PROFITTAKING ON THE STOCK OF THE OFFICE PRODUCTS COMPANY THE STOCK HIT A 52WEEK HIGH EARLIER LAST WEEK AMERICAN DEPOSITARY RECEIPTS OF MEXICAN COMPANIES FELL IN TANDEM WITH PRICES ON THAT COUNTRY'S STOCK MARKET TELEFONOS DE MEXICO WAS DOWN 2 1/4 TO 71 3/8 PARAMOUNT COMMUNICATIONS DROPPED 1 1/4 TO 75 BLOCKBUSTER ENTERTAINMENT ROSE 7/8 TO 24 1/2 AND VIACOM'S CLASS B SHARES LOST 1 1/4 TO 25 3/4 ON THE AMEX THE WALL STREET JOURNAL REPORTED THAT HOLDERS OF BLOCKBUSTER ARE ANGRY ABOUT THE DECLINING VALUE OF VIACOM STOCK WHICH THEY WILL RECEIVE IN THE COMPANIES' PLANNED MERGER VIACOM SHARES HAVE FALLEN SINCE THE COMPANY WON A BIDDING WAR FOR PARAMOUNT SEMICONDUCTOR STOCKS ROSE FOR THE THIRD TIME IN FOUR SESSIONS MOTOROLA ADDED 5/8 TO 103 3/4 WHILE INTEL ADDED 1/4 TO 66 3/4 ON NASDAQ THE COMPANIES WERE NAMED AS THE MICROCHIP MARKET'S LEADERS IN A SURVEY RELEASED FRIDAY MORNING BY DATAQUEST A MARKET RESEARCH FIRM TEXAS INSTRUMENTS ROSE 2 3/4 TO 79 1/4 WHILE MICRON TECHNOLOGY ADDED 4 1/8 TO 65 5/8 ON HOPES FOR STRONGER PRICES FOR DYNAMIC RANDOM ACCESS MEMORY CHIPS ACCORDING TO ONE ANALYST 9402220066 940222 DIVIDEND NEWS WASHINGTON SAVINGS BANK FSB WASHINGTON SAVINGS BANK FSB WALDORF MD THIS SAVINGS BANK DECLARED A SEMIANNUAL DIVIDEND OF FOUR CENTS A SHARE PAYABLE MARCH 8 TO HOLDERS OF RECORD FEB 28 ALTHOUGH THE DIVIDEND IS EQUIVALENT TO THE FOURCENTASHARE DIVIDEND PAID IN SEPTEMBER IT REPRESENTS A 50 INCREASE AFTER GIVING EFFECT TO A 50 STOCK DIVIDEND PAID ON DEC 17 WASHINGTON SAVINGS SAID EARNINGS FOR ITS FISCAL SECOND QUARTER ENDED JAN 31 NEARLY DOUBLED TO 12 MILLION OR 26 CENTS A SHARE FROM 628000 OR 14 CENTS A SHARE THE INCREASE WAS MAINLY ATTRIBUTABLE TO A PRETAX GAIN OF ABOUT 16 MILLION FROM THE SALE OF ABOUT 24 MILLION OF MORTGAGEBACKED SECURITIES THAT PREVIOUSLY HAD BEEN ACCOUNTED FOR DIFFERENTLY THE COMPANY SAID THAT WHILE IT BELIEVES REPOSITIONING ITS BALANCE SHEET WILL BE POSITIVE FOR THE LONG TERM EARNINGS FOR THE NEXT ONE OR MORE QUARTERS MAY NOT COMPARE FAVORABLY WITH YEAREARLIER PERIODS UNTIL THE FUNDS CAN BE MORE FAVORABLY REDEPLOYED 9402220065 940222 TWO NEW INDIA FUNDS COME TO MARKET DESPITE SOME CONCERNS OVER VOLATILITY BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK SCANDAL BOMBINGS AND SEVERE SECURITIES RESTRICTIONS WEREN'T ENOUGH TO STOP US MONEY MANAGERS FROM LAUNCHING TWO FUNDS LAST WEEK THAT WILL INVEST IN INDIA'S STOCK MARKET ALTHOUGH AT FIRST GLANCE THERE WAS TREMENDOUS DEMAND FOR THE FUNDS UNDERWRITERS TRYING TO GENERATE INTEREST IN THEM MIGHT HAVE SOUGHT APPROVAL FOR FEWER SHARES THAN THEY HAD HOPED TO SELL ON FRIDAY MORGAN STANLEY INDIA INVESTMENT FUND INC OFFERED 357 MILLION SHARES UP FROM ONLY FOUR MILLION SHARES ORIGINALLY PLANNED THE SHARES WERE PRICED AT 15 EACH LAST MONDAY INDIA FUND INC CAME TO MARKET WITH 34 MILLION COMMON SHARES PRICED AT 15 EACH UNDERWRITERS LED BY OPPENHEIMER & CO INITIALLY PLANNED 27 MILLION SHARES BOTH FUNDS TRADE PUBLICLY ON THE NEW YORK STOCK EXCHANGE THE ONLY OTHER FUND THAT IS A PURE INVESTMENT PLAY ON INDIA IS INDIA GROWTH FUND INC WHICH WAS STARTED IN 1988 IT TOO TRADES ON THE BIG BOARD ALTHOUGH MANY FUND EXPERTS AGREE THAT INDIA'S BURGEONING STOCK MARKET CREATES MANY INVESTMENT OPPORTUNITIES THEY SAY INVESTORS SHOULD RECOGNIZE ITS VOLATILITY INDIA'S FINANCIAL COMMUNITY HAS BEEN EMBROILED IN SCANDAL SINCE 1992 WHEN BANK FUNDS WERE DIVERTED INTO THE STOCK MARKET USING FORGED OR FICTITIOUS RECEIPTS FOR SECURITIES THE INJECTION OF MONEY SET THE MARKET ON A BULL RUN BEFORE IT CRASHED WHEN THE SCANDAL WAS EXPOSED EVEN WITH 7000 PUBLICLY TRADED COMPANIES FROM WHICH TO CHOOSE THE MARKETS STILL REMAIN ILLIQUID MEANING IT IS DIFFICULT TO BUY OR SELL SHARES EASILY AND QUICKLY IT'S A LIVELY MARKET AND A THIN ONE ON TOP OF IT SAID THOMAS HERZFELD A CLOSEDEND FUND SPECIALIST BASED IN MIAMI MARK MOBIUS WHO MANAGES TWO EMERGING MARKETS FUNDS FOR TEMPLETON FUNDS A SUBSIDIARY OF FRANKLIN RESOURCES INC SAID HE IS WARY OF INDIA BECAUSE ITS STOCK EXCHANGES ARE A PAPERWORK NIGHTMARE AFTER COMPLETING STACKS OF FORMS IT TAKES MONTHS FOR SECURITIES TO BE DELIVERED TO INVESTORS AND THAT CAN CAUSE FRAUD AND COUNTERFEITING MR MOBIUS SAID CERTAINLY THERE ARE GOOD COMPANIES THERE THE PROBLEM IS WITH THE WHOLE SYSTEM OF TRADING AND SETTLEMENT OF SECURITIES HE SAID I'M A BIT PUZZLED ABOUT ALL OF THESE FUNDS COMING OUT IT'S JUST A PAPER WAR SUCH PROBLEMS HAVE LED MANY CUSTODIANS OR COMPANIES THAT SAFEGUARD THE SECURITIES TO TELL FUND MANAGERS LIKE MR MOBIUS THAT THEY DON'T WANT TO DEAL WITH INDIAN SECURITIES IN ADDITION A SERIES OF BOMBS EXPLOSIONS LAST MARCH AT THE BOMBAY STOCK EXCHANGE AND OTHER FINANCIAL INSTITUTIONS DISRPUTING TRADING AND THE NATION'S FINANCIAL INFRASTRUCTURE THE INCREASE IN FUND SHARES OFFERED MIGHT BE A SIGN OF SOMETHING OTHER THAN GREAT DEMAND BY INVESTORS SAID MR HERZFELD THE CLOSEDEND FUND SPECIALIST MONEY MANAGERS WANT TO MAKE A FUND LOOK LIKE A SUCCESS SO THEY WILL FILE FOR A SMALLER AMOUNT AND INCREASE IT LATER IF THEY FILED FOR 25 MILLION SHARES AND SOLD 20 MILLION THEY WOULD LOOK LIKE LOSERS MR HERZFELD SAID IF INVESTORS SEE A SMALLER FUND THEY MIGHT THINK IT'S HARDER TO GET INTO AND THEREFORE DEMAND IS CREATED HE SAID MR HERZFELD SAID HE THINKS THERE IS STRONG DEMAND FOR INDIA FUNDS BECAUSE INVESTORS ARE SNAPPING UP SHARES OF ALL TYPES OF EMERGING MARKETS FUNDS BUT HE'S CRITICAL OF UNDERWRITERS CREATING MORE SHARES IF YOU INCREASE THE SIZE TO MEET THE DEMAND THERE'S NO ONE LEFT WHO WANTS TO BUY THE STOCK HE SAID A GOOD INDICATOR OF THE DEMAND FOR THE STOCK MIGHT BE TO CHECK HOW IT IS DOING IN THE MARKET MR HERZFELD SAID SINCE COMING OUT LAST MONDAY THE INDIA FUND HAS BARELY EDGED HIGHER IT CLOSED FRIDAY AT 15 1/8 UP 1/8 ON VOLUME OF 271900 SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 940400 THE OLDER INDIA GROWTH FUND SHOULD HAVE BEEN A BENEFICIARY OF PUBLICITY SURROUNDING THE TWO NEW FUNDS BUT INSTEAD IT CLOSED FRIDAY AT 26 3/8 DOWN 1/2 ON VOLUME OF 39300 COMPARED WITH AVERAGE DAILY VOLUME OF 83000 THE MORGAN STANLEY INDIA INVESTMENT FUND CLOSED FRIDAY UCHANGED AT 15 ON VOLUME OF 16 MILLION SHARES 9402220064 940222 ECONOMY US SEEKS OTHER ASIAN NATIONS' SUPPORT DURING TESTY TRADE BATTLE WITH JAPAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS A MESSAGE FOR THE REST OF ASIA DON'T WORRY YOU AREN'T NEXT AFTER THE TRADE BATTLE WITH JAPAN THAT MESSAGE IS BEING DELIVERED IN A PRIVATE MEETING TODAY IN SINGAPORE BETWEEN COMMERCE UNDERSECRETARY JEFFREY GARTEN AND SINGAPORE'S MOST POWERFUL POLITICIAN LEE KUAN YEW MR GARTEN'S TRIP TO ASIA WAS PLANNED BEFORE THE COLLAPSE OF USJAPAN TRADE TALKS 10 DAYS AGO BUT THE CLINTON ADMINISTRATION IS USING THE TRIP AS AN OPPORTUNITY TO SHORE UP SUPPORT OR AT LEAST TO BLUNT OPPOSITION FROM FASTGROWING COUNTRIES IN ASIA IF THEIR WORRY IS SOMEHOW WE'RE GUNNING FOR THEM BECAUSE OF PROBLEMS WE HAVE WITH JAPAN MR GARTEN SAID IN AN INTERVIEW THAT'S REALLY MISPLACED US TRADE OFFICIALS BELIEVE THEY WERE OUTFLANKED BY JAPAN IN THE PUBLICRELATIONS BATTLE THAT ACCOMPANIED THE FAILED FRAMEWORK TRADE NEGOTIATIONS JAPAN WAS ABLE TO PORTRAY US DEMANDS FOR SPECIFIC IMPORT GOALS AND MEASUREMENTS AS SOCALLED MANAGED TRADE AND TO CONVINCE OTHERS IN ASIA THAT THE US WOULD TURN ON THEM NEXT IN A SPEECH TO SINGAPORE'S FEDERATED CHAMBERS OF COMMERCE YESTERDAY MR GARTEN LAID OUT THE CLINTON POSITION JAPAN IS A UNIQUE CASE HE TOLD THE GROUP THE PROBLEMS WE FACE ARE NOT JUST IN ONE PRODUCT AREA OR ANOTHER NOT JUST WHEN IT COMES TO GOODS OR SERVICES NOT JUST WHEN IT COMES TO STRUCTURAL ISSUES IT IS ALL OF THIS TOGETHER HE SAID THE US WOULDN'T BECOME SO FIXATED WITH JAPAN THAT IT LOSES SIGHT OF TRADE OPPORTUNITIES ELSEWHERE IN ASIA IN AN INTERVIEW MR GARTEN SAID HE WILL CARRY THAT MESSAGE TO TRADE MINISTERS IN INDONESIA CHINA AND HONG KONG DURING HIS TWOWEEK TRIP HE ALSO PLANS TO MEET WITH OTHER ASIAN MINISTERS WHO ARE IN SINGAPORE TODAY AND TOMORROW FOR THE ASIAN AEROSPACE SHOW AS PART OF THEIR STRATEGY TO TURN UP THE PRESSURE ON JAPAN US OFFICIALS HAVE SINGLED OUT SINGAPORE AND SOUTH KOREA AS POTENTIAL ALLIES MR GARTEN IS TRYING TO GET SOUTHEAST ASIAN COUNTRIES TO FLESH OUT A PLAN TO PROMOTE JOINT VENTURES BETWEEN US COMPANIES AND SOUTHEAST ASIAN ONES REGARDING SOUTH KOREA ADMINISTRATION OFFICIALS SAID THEY ARE DUSTING OFF A KOREAN PROPOSAL MADE AT THE END OF THE BUSH ADMINISTRATION TO SET UP A STRATEGIC TECHNOLOGY ALLIANCE WITH THE US WHICH LARGELY EXCLUDES JAPAN BUT THE HUNT FOR TRADE ALLIES MAY PROVE FRUITLESS LATE LAST WEEK AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE WORLD TRADE FORUM IN GENEVA A SUCCESSION OF COUNTRIES TOOK TURNS LAMBASTING THE US FOR MUSCLING JAPAN MOREOVER JAPANESE RELATIONS WITH THE REST OF ASIA ARE COMPLEX TOKYO RUNS BIG TRADE SURPLUSES WITH MANY ASIAN COUNTRIES HOWEVER JAPAN IS ALSO A MAJOR SOURCE OF FOREIGN INVESTMENT FOR ASIA AND FOR SOME NATIONS HEFTY FOREIGNAID CHECKS TOKYO ALSO COULD TRY TO PARRY US MOVES IF IT INTERPRETS THEM AS ISOLATING JAPAN AN EARLY TEST COULD COME THIS YEAR WHEN JAPAN DECIDES WHETHER TO BACK A MALAYSIAN PROPOSAL TO CREATE AN ASIAN ECONOMIC CAUCUS THAT EXCLUDES THE US IN THE PAST JAPAN HAS BLOCKED THE MALAYSIAN PLAN BUT NOW THE FEAR OF PROTECTIONISM MAY BIND US SAID KAZUO NUKUZAWA MANAGING DIRECTOR OF KEIDANREN JAPAN'S BIG BUSINESS ORGANIZATION G PIERRE GOAD IN SINGAPORE CONTRIBUTED TO THIS ARTICLE 9402220063 940222 INTERNATIONAL MACHINES BULL CHIEF SEEKS TO OPEN CAPITAL TO STAFF NEW PARTNERS SPECIAL TO THE WALL STREET JOURNAL PARIS JEANMARIE DESCARPENTRIES CHAIRMAN OF CIE DES MACHINES BULL WOULD LIKE TO OPEN THE FRENCH STATEOWNED COMPUTER MAKER'S CAPITAL TO EMPLOYEES AND NEW INDUSTRIAL PARTNERS LATER THIS YEAR MR DESCARPENTRIES SAID HE'D LIKE TO ALLOCATE 15 TO 20 OF THE GROUP'S SHARES FOR EMPLOYEES WHILE TWO OR THREE OUTSIDE PARTNERS COULD PURCHASE STAKES OF 10 OR 15 EACH NEC CORP THE JAPANESE COMPANY THAT ALREADY OWNS ABOUT 5 OF BULL WAS CITED AS A POSSIBLE CANDIDATE EACH OF OUR DIVISIONS COULD COOPERATE WITH AN OUTSIDE INDUSTRIAL PARTNER MR DESCARPENTRIES SAID HE SAID A SUCCESSFUL COOPERATIVE EFFORT COULD LEAD TO MERGERS AND INTRODUCTIONS ON THE BOURSE WITH THE CASH GENERATED USED FOR REINVESTMENT THE FRENCH GOVERNMENT CURRENTLY OWNS 72 OF BULL WHILE STATEOWNED FRANCE TELECOM HAS 16 AND INTERNATIONAL BUSINESS MACHINES CORP HOLDS LESS THAN 2 MR DESCARPENTRIES SAID HE'D LIKE THE STATE TO RETAIN A SMALL STAKE IN BULL AND HE ALSO WANTS FRANCE TELECOM TO STAY IN THE GOAL OF HIS PLAN IS TO CONVINCE AUTHORITIES OF THE EUROPEAN UNION THAT BULL MERITS THE 95 BILLION FRANC 16 BILLION RECAPITALIZATION PROPOSED BY FRENCH INDUSTRY MINISTER GERARD LONGUET THE EU HAS BEEN BLOCKING THE FLOW OF STATE CAPITAL INJECTIONS PENDING DETAILS ON HOW BULL INTENDS TO RESTRUCTURE WHICH HAVE BEEN SLOW IN COMING MR DESCARPENTRIES SAID HE'S CONVINCED HE CAN PUT BULL BACK ON ITS FEET IN TWO YEARS AND HE ADDED THAT NEC SUPPORTS HIS PLAN FOCUSING ON DIVIDING THE GROUP INTO SEPARATE PROFIT CENTERS BULL EXPECTS FURTHER LOSSES THIS YEAR THOUGH NOT AS WIDE AS IN 1993 BULL ANNOUNCED A PRELIMINARY LOSS BEFORE RESTRUCTURING CHARGES OF 342 BILLION FRANCS MR DESCARPENTRIES ALSO PLEDGED TO STICK TO THE PLANS OF HIS PREDECESSOR BERNARD PACHE TO CUT 6500 JOBS WORLDWIDE IN THE TWO YEARS TO THE END OF 1994 THE NEW CHAIRMAN WILL DECIDE AFTER JUNE WHETHER ADDITIONAL LAYOFFS ARE NECESSARY 9402220062 940202 CIVILRIGHTS NOMINEE QUOTA CLONE BY CLINT BOLICK BY NAMING BOSTON LAWYER DEVAL PATRICK THE NATION'S TOP CIVILRIGHTSLAW ENFORCEMENT OFFICIAL BILL CLINTON CONFIRMED A FEAR HARBORED BY MANY WHO HOPED HE WOULD LIVE UP TO HIS NEW DEMOCRAT BILLING THAT THE PRESIDENT HAS WEDDED HIMSELF TO A HARDLEFT CIVILRIGHTS AGENDA THOUGH CHASTENED BY PUBLIC REPUDIATION OF THE RADICAL VIEWS ESPOUSED BY LANI GUINIER HIS FIRST NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS MR CLINTON HAS DIPPED INTO THE SAME PHILOSOPHICAL WELL FOR ALL HIS OTHER NOMINEES FOR KEY CIVILRIGHTS POSITIONS HE NEARLY DIVERGED FROM THIS PATH BY CHOOSING JOHN PAYTON FOR THE TOP POST BUT RETREATED WHEN THE CONGRESSIONAL BLACK CAUCUS QUESTIONED MR PAYTON'S IDEOLOGICAL BONA FIDES IN MR PATRICK MR CLINTON HAS SELECTED A STEALTH GUINIER A SIMILAR ACTIVIST PEDIGREE BUT WITHOUT DAMAGING LAWREVIEW ARTICLES DURING THE EARLY 1980S BOTH MR PATRICK AND MS GUINIER LITIGATED WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND LDF WHICH HAS RELENTLESSLY PRESSED FOR RACE QUOTAS BUSING AND MINORITY CONTRACT SETASIDES MR PATRICK NOW CHAIRS THE GROUP'S NEW ENGLAND STEERING COMMITTEE THOUGH MS GUINIER FOCUSED ON VOTINGRIGHTS CASES WHILE MR PATRICK ATTACKED THE DEATH PENALTY AND REPRESENTED CRIMINAL DEFENDANTS A CONSISTENT THREAD RUNS THROUGH THEIR EFFORTS AND THE ENTIRE LDF PROGRAM THE BELIEF THAT UNCONSCIOUS RACISM PERMEATES AMERICAN SOCIETY AND CAN BE REMOVED ONLY THROUGH RACECONSCIOUS SOCIAL ENGINEERING ONE PATRICK CASE IN PARTICULAR EXEMPLIFIES THIS IN MCCLESKY V KEMP A 1987 SUPREME COURT CASE MR PATRICK REPRESENTED WARREN MCCLESKY A BLACK MAN ACCUSED OF MURDER FOR ALLEGEDLY SHOOTING A POLICEMAN IN THE FACE DURING THE ROBBERY OF A FURNITURE STORE IN FULTON COUNTY GA A MIXEDRACE JURY SENTENCED MR MCCLESKY TO DEATH THE MCCLESKY CASE WAS PART OF LDF'S EFFORT TO ELIMINATE CAPITAL PUNISHMENT A GOAL ITS 198788 ANNUAL REPORT DESCRIBED AS FOR MORE THAN TWO DECADES LDF'S PRIORITY IN THE AREA OF CRIMINAL JUSTICE BUT LDF PRESENTED NO EVIDENCE THAT DISCRIMINATION INFECTED MR MCCLESKY'S TRIAL OR SENTENCE IN ANY WAY RATHER IT RELIED SOLELY ON STATISTICAL STUDIES SHOWING THAT MURDERERS OF WHITE VICTIMS WERE MORE LIKELY TO RECEIVE CAPITAL PUNISHMENT THAN MURDERERS WHOSE VICTIMS WERE BLACK THE STATISTICS ALSO SHOWED CURIOUSLY THAT A HIGHER PERCENTAGE OF WHITES THAN BLACKS WERE GIVEN CAPITAL PUNISHMENT WHEN THE VICTIMS WERE BLACK THIS STUDY WAS ENOUGH MR PATRICK ASSERTED TO STRIKE DOWN THE DEATH SENTENCE AS A VIOLATION OF THE EIGHTH AMENDMENT'S BAN ON CRUEL AND UNUSUAL PUNISHMENT AND THE 14TH AMENDMENT'S EQUALPROTECTION GUARANTEE MR PATRICK'S ARGUMENT WOULD HAVE FORCED THE SUPREME COURT TO ABANDON ITS RULE THAT VIOLATIONS OF EQUAL PROTECTION REQUIRE PROOF OF DISCRIMINATORY INTENT NOT JUST UNEQUAL OUTCOMES THE COURT DECLINED GIVEN THE MYRIAD PROTECTIONS ATTENDING THE DEATH PENALTY AND ABSENT EVIDENCE THAT DISCRIMINATION AFFECTED A PARTICULAR SENTENCE THE COURT RULED THAT STATISTICS ALONE WERE NOT ENOUGH TO CONDEMN THE WHOLE SYSTEM AS DISCRIMINATORY REGARDLESS OF ONE'S OPINION ON CAPITAL PUNISHMENT GENERALLY MR PATRICK'S ARGUMENT IS DISTURBING ON MULTIPLE LEVELS GRAFTING AN EQUALITYOFRESULTS STANDARD ONTO THE 14TH AMENDMENT WOULD RENDER UNCONSTITUTIONAL ANY GOVERNMENT POLICY THAT AFFECTS RACIAL GROUPS DIFFERENTLY LEADING INEVITABLY TO THE TYPE OF RACIAL GERRYMANDERING THAT CHARACTERIZES THE VOTING RIGHTS ACT WHICH USES A RESULTS STANDARD PRESIDENT CLINTON REJECTED THIS APPROACH DURING HIS CAMPAIGN WHEN HE ENDORSED EQUAL OPPORTUNITY RATHER THAN EQUALITY OF RESULTS AS HIS CIVILRIGHTS TOUCHSTONE THE PATRICK NOMINATION ALSO REFLECTS A TROUBLING TENDENCY BY MR CLINTON TO APPOINT JUDGES AND LAW ENFORCEMENT OFFICIALS WHO EXALT SOCIOLOGY AND PSYCHOLOGY OVER LAW LIKE MS GUINIER'S CONTENTION THAT UNCONSCIOUS RACISM PRODUCES UNEQUAL ELECTORAL RESULTS MR PATRICK'S ARGUMENT IN MCCLESKY RESTS ON THE PREMISE THAT FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES THIS PREMISE ANIMATED LDF'S LITIGATION AGENDA DURING MR PATRICK'S TENURE IN WHICH IT SUCCESSFULLY SOUGHT MASSIVE JUDICIALLY IMPOSED TAX INCREASES TO FUND A GOLDPLATED DESEGREGATION PLAN IN KANSAS CITY MO ARGUED IN FAVOR OF RACIAL QUOTAS FOR PUBLIC EMPLOYEES IN THE DISTRICT OF COLUMBIA NEW ORLEANS AND ELSEWHERE DEFENDED MINORITY CONTRACT SETASIDES AND PRESSED FOR CONTINUATION OF FORCED BUSING DECADES AFTER SEGREGATION HAD CEASED THOUGH MR CLINTON PROFESSED HE WOULDN'T HAVE NOMINATED LANI GUINIER IF HE HAD KNOWN HER VIEWS MR PATRICK'S IS THE LATEST IN AN UNBROKEN LINE OF APPOINTMENTS FROM THE RANKS OF THE SAME LIBERAL CIVILRIGHTS ESTABLISHMENT THAT PRODUCED MS GUINIER FOR HEAD OF THE US COMMISSION ON CIVIL RIGHTS MR CLINTON ELEVATED MARY FRANCES BERRY WHO IN 1985 OPINED THAT CIVILRIGHTS LAWS WERE NOT PASSED TO GIVE CIVIL RIGHTS TO ALL AMERICANS BUT ONLY TO DISFAVORED GROUPS INCLUDING BLACKS HISPANICS AND WOMEN MS BERRY IS SO STRIDENT THAT HER APPOINTMENT VIRTUALLY ENSURES THIS MORIBUND AGENCY CONTINUED IRRELEVANCY MEANWHILE NORMA CANTU ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE EDUCATION DEPARTMENT LITIGATED BUSING CASES FOR THE MEXICANAMERICAN LEGAL DEFENSE AND EDUCATION FUND AND SHIRLEY WILCHER WHO MR CLINTON TAPPED TO HEAD THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS AT THE LABOR DEPARTMENT TOILED IN THE EARLY '80S FOR THE WOMEN'S LEGAL DEFENSE FUND MS CANTU HAS ALREADY TAKEN STEPS TO REVERSE PREVIOUS POLICIES RESTRICTING RACIAL CONSIDERATIONS IN COLLEGE SCHOLARSHIPS SINCE MR PATRICK HAS NO PUBLISHED WRITINGS THE SENATE JUDICIARY COMMITTEE SHOULD CLOSELY QUESTION HIS POSITIONS ON KEY CIVILRIGHTS ISSUES FOR INSTANCE DOES MR PATRICK SUPPORT KEY SUPREME COURT PRECEDENTS THAT 1 REQUIRE A SHOWING OF DISCRIMINATORY INTENT TO ESTABLISH CONSTITUTIONAL VIOLATIONS 2 LIMIT RACECONSCIOUS REMEDIES TO EXTREME CASES OF IDENTIFIED PAST DISCRIMINATION THAT CANNOT BE REDRESSED IN ANY OTHER MANNER AND 3 LET SCHOOL DISTRICTS FREE THEMSELVES FROM BUSING ORDERS AND RETURN TO LOCAL CONTROL AFTER DESEGREGATION ORDERS HAVE BEEN FULFILLED LDF FOR WHICH MR PATRICK SERVED AS AN ATTORNEY AND OF WHICH HE IS NOW A DIRECTOR TOOK THE OPPOSITE POSITION IN ALL THESE CASES EITHER MR PATRICK DOESN'T SHARE LDF'S PHILOSOPHY WHICH WOULD SEEM STRANGE OR HIS VIEWS ARE AT ODDS WITH THE MODERATE STANCE MR CLINTON TOOK DURING THE CAMPAIGN IN EITHER CASE A BIGGER QUESTION PERSISTS WHY DOES MR CLINTON RETURN TO THE SAME IDEOLOGICAL RETREADS FOR HIS CIVILRIGHTS NOMINATIONS IN THE NEW YORK TIMES EARLIER THIS WEEK COLUMNIST ANTHONY LEWIS ATTACKS ME AND THIS NEWSPAPER ARGUING THAT MS GUINIER WAS MISCHARACTERIZED IN THESE PAGES AS A QUOTA QUEEN THE LARGER ISSUE THOUGH IS NOT ONE SIMPLY OF QUOTAS ALTHOUGH I WAS CORRECT BUT THE PRESIDENT'S HABIT OF CHOOSING NOMINEES WHO VIEW THE WORLD THROUGH A RACIAL PRISM THIS TIME THE PRESIDENT COULD HAVE STRUCK A POSITIVE COURSE BY SELECTING LIBERALS WHO HAVE WRITTEN THOUGHTFULLY ABOUT THESE ISSUES SUCH AS STEPHEN CARTER OF YALE OR RANDALL KENNEDY OF HARVARD BUT MR CLINTON UNFAILINGLY TAKES HIS CUES FROM A CIVILRIGHTS ESTABLISHMENT THAT FOR 25 YEARS HAS HELD SWAY INSIDE THE WASHINGTON BELTWAY EVEN AS ITS INFLUENCE IN THE REAL WORLD HAS RAPIDLY DIMINISHED AS GROUPS LIKE LDF HAVE MOVED LEFT THEY'VE DISTANCED THEMSELVES FROM THEIR PURPORTED CONSTITUENTS WHICH SURVEYS OF MAINSTREAM BLACK AMERICANS DEMONSTRATE CONSISTENTLY IF MR CLINTON PERSISTS IN LOOKING LEFT FOR CIVILRIGHTS SOLUTIONS HE'LL KEEP HIS PARTY SHACKLED TO FAILED RACIALLY DIVISIVE POLICIES BUT MORE IMPORTANT HE WILL HAVE MISSED A GOLDEN OPPORTUNITY TO HEAL OUR NATION'S RACIAL WOUNDS MR BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON SEE RELATED LETTER STARK FIGURES OF CAPITAL SENTENCING WSJ FEB 22 1994 9402020024 YY94 MM02 9402220061 940222 HEARD ON THE STREET WALMART'S STOCK FOLLOWING A DECLINE OF 19 IN THE PAST YEAR LOOKS LIKE BARGAIN TO SOME BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RETAILER WALMART STORES HAS LONG BEEN KNOWN FOR ITS LOWPRICED MERCHANDISE AND LOFTY STOCK PRICE MAKE NO MISTAKE THE STOCK STILL ISN'T CHEAP BASED ON MOST TRADITIONAL MARKET YARDSTICKS BUT AFTER A 19 SWOON IN THE PAST YEAR WALMART LOOKS LIKE A BARGAIN TO SOME GROWTHSTOCK INVESTORS WHO ENVISION HEALTHY EARNINGS GROWTH IN THE YEARS AHEAD I CANNOT OWN ENOUGH WALMART SAYS JAMES CRAIG MANAGER OF THE JANUS FUND A DENVERBASED MUTUAL FUND WALMART IS JANUS FUND'S BIGGEST POSITION ACCOUNTING FOR 5 OF THE FUND'S 95 BILLION IN ASSETS WALMART'S STOCK PEAKED AT 34 1/8 IN MARCH 1993 WHEN IT WAS TRADING AT 39 TIMES THE PRIOR YEAR'S EARNINGS IN FRIDAY'S DOWN MARKET THE STOCK CLOSED UNCHANGED AT 27 3/4 OR 27 TIMES THE STREET'S ESTIMATES FOR THE FISCAL YEAR THROUGH LAST MONTH YOU HAVE HAD THE MULTIPLE COMPRESS TREMENDOUSLY NOTES MR CRAIG INVESTORS BAILED OUT AS IT BECAME CLEAR THAT EARNINGS GROWTH WAS SLOWING AT THE BENTONVILLE ARK COMPANY PERSHARE EARNINGS HAD RISEN AT A 25 ANNUAL CLIP IN THE FIVE YEARS THROUGH JANUARY 1993 AND AT A 36 RATE IN THE FIVE YEARS PRIOR TO THAT BUT IN THE JUSTENDED FISCAL YEAR ANALYSTS FIGURE THAT WALMART EARNED 103 A SHARE 18 ABOVE THE YEAREARLIER LEVEL WALMART WILL RELEASE ITS FULLYEAR RESULTS THIS MORNING BEFORE THE MARKET OPENS ROD LINAFELTER COMANAGER OF 19 BILLION BERGER 100 FUND SOLD HIS WALMART STAKE LAST YEAR THAT WAS PROBABLY THE MOST DIFFICULT SELL DECISION I'VE EVER MADE HE SAYS IT'S THE CLOSEST I'VE EVER COME TO BEING EMOTIONALLY ATTACHED TO A STOCK FRANKLY IF IT HAD JUST BEEN MY OWN MONEY I MIGHT HAVE HELD IT FOREVER MR LINAFELTER RECKONS WALMART'S PERSHARE EARNINGS WILL GROW 15 TO 16 ANNUALLY IN THE YEARS AHEAD I STILL THINK WALMART IS A GREAT GREAT COMPANY HE SAYS BUT I THINK THAT WE'RE IN FOR A PROTRACTED PERIOD OF DECELERATING GROWTH RATES AND I DON'T THINK THE PRICETOEARNINGS MULTIPLE YET REFLECTS THAT BUT OTHER INVESTORS AREN'T YET WILLING TO GIVE UP ON THE RETAILER WHICH FOR YEARS HAD REIGNED AS THE COUNTRY'S PREEMINENT GROWTH STOCK IT'S A COMPANY WE'VE OWNED FOR 23 YEARS SAYS ROGER ENGEMANN PRESIDENT OF ROGER ENGEMANN & ASSOCIATES IT USED TO GROW 30 TO 35 A YEAR NOW IT'S GROWING ABOUT 20 A YEAR WHICH WE STILL THINK IS PRETTY GOOD I THINK THIS IS A TERRIFIC TIME TO BUY IT ACCORDING TO ZACKS INVESTMENT RESEARCH ANALYSTS ARE LOOKING FOR A 20 RISE IN EARNINGS TO 124 A SHARE IN THE CURRENT FISCAL YEAR ENDING IN JANUARY 1995 FOR THE FOLLOWING YEAR THROUGH JANUARY 1996 ANALYSTS FORECAST 148 A SHARE A 19 IMPROVEMENT I STILL THINK IT'S A COMPANY THAT DESPITE ITS SIZE IS GOING TO HAVE SUPERLATIVE GROWTH SAYS ROBERT DOLL JR MANAGER OF THE 750 MILLIONASSET OPPENHEIMER SPECIAL FUND THE CONSENSUS IS THAT THE LONGTERM GROWTH RATE IS 193 COMPARED WITH A 9 EARNINGS GROWTH RATE FOR THE BROAD MARKET MR DOLL SUSPECTS THAT THE FIGURES FOR BOTH WALMART AND THE BROAD MARKET ARE A LITTLE HIGH NONETHELESS HE THINKS WALMART IS ATTRACTIVE THE STOCK IS TRADING AT AROUND 22 TIMES FORECASTED EARNINGS FOR THE NEXT 12 MONTHS COMPARED WITH 16 TIMES EARNINGS FOR THE STOCKS IN THE STANDARD & POOR'S 500 BY BUYING WALMART I GET MORE THAN DOUBLE THE GROWTH OF THE AVERAGE COMPANY AT A 38 PREMIUM TO THE MARKET SAYS MR DOLL JANUS FUND'S MR CRAIG THINKS WALMART WILL DO EVEN BETTER THAN WALL STREET EXPECTS HE ATTRIBUTES THE PAST YEAR'S SLOWER EARNINGS GROWTH TO THE BRUTAL BATTLE FOR DOMINANCE BETWEEN SAM'S WHOLESALE CLUBS OPERATED BY WALMART AND THE OTHER WAREHOUSE STORES BUT THE WAR IS APPARENTLY WINDING DOWN LATE LAST YEAR KMART THREW IN THE TOWEL AGREEING TO SELL MOST OF ITS PACE STORES TO WALMART NOW THAT WALMART HAS BEATEN THE COMPETITION MR CRAIG THINKS SALES AT SAM'S WILL IMPROVE AND SO TOO WILL WALMART'S EARNINGS GROWTH I EXPECT UPSIDE EARNINGS SURPRISES SAYS MR CRAIG WE'RE NOT TALKING ABOUT BLOWOUT NUMBERS BUT IF WALMART EARNS A COUPLE OF PENNIES EXTRA YOU'RE TALKING ABOUT A GOOD MOVE IN THE STOCK MR CRAIG NOTES THAT WALMART WITH ITS STOCKMARKET CAPITALIZATION OF 64 BILLION IS A MAJOR COMPONENT OF THE S&P 500STOCK INDEX AS A RESULT IF WALMART STARTS TO DO WELL MONEY MANAGERS WILL RUSH TO BUY IT BECAUSE IT'S SIMPLY TOO BIG TO IGNORE THE THING I REALLY LIKE ABOUT WALMART IS WHEN I LOOK AT MY COMPETITION IT'S NOT AMONG THEIR TOP 10 HOLDINGS SAYS MR CRAIG 9402220060 940222 CONTINENTAL'S DISASTER LOSSES NEW YORK CONTINENTAL CORP ESTIMATED ITS PRETAX LOSSES ON THE LOS ANGELES EARTHQUAKE AND JANUARY SNOW STORMS TO BE 73 MILLION THE PROPERTY AND CASUALTY INSURER SAID THE EARTHQUAKE WILL COST 30 MILLION WHILE THE STORMS WILL COST 43 MILLION IT SAID THE LOSSES WILL REDUCE FIRSTQUARTER RESULTS TO BE ANNOUNCED ON MAY 4 9402220059 940222 MARKETING & MEDIA NATIONAL MEDIA CORP SPURNS SECOND OFFER FROM VALUEVISION PHILADELPHIA NATIONAL MEDIA CORP SPURNED A SECOND UNSOLICITED TENDER OFFER FROM VALUEVISION INTERNATIONAL INC AS FINANCIALLY INADEQUATE AND RECOMMENDED THAT ITS STOCKHOLDERS NOT TENDER THEIR SHARES VALUEVISION THE THIRDLARGEST US HOMESHOPPING NETWORK HAD MADE A TENDER OFFER OF 1050 A SHARE IN CASH FOR 583 MILLION SHARES OF NATIONAL MEDIA A PRODUCER OF INFOMERCIALS THESE SHARES COMBINED WITH THE 12 MILLION SHARES VALUEVISION SAID IT ALREADY OWNS WOULD REPRESENT 50 OF NATIONAL MEDIA VALUEVISION WOULD THEN OFFER 1050 IN VALUEVISION STOCK FOR EACH OF THE REMAINING NATIONAL MEDIA SHARES NATIONAL MEDIA REJECTED A 10 A SHARE OFFER IN DECEMBER NATIONAL MEDIA SAID THE SECOND OFFER VALUED AT ROUGHLY 134 MILLION WAS FRONTEND LOADED AND HIGHLY COERCIVE NATIONAL MEDIA ALSO SAID THAT VALUEVISION COULDN'T AFFORD TO PAY FOR THE SHARES IT SEEKS TO BUY AND HAS PRESENTED NO EVIDENCE THAT THE OFFER IS EITHER FINANCED OR FINANCEABLE A SPOKESMAN FOR VALUEVISION COUNTERED THAT FINANCING WON'T BE AN ISSUE NATIONAL MEDIA PLANS TO CONTINUE EXPLORING OPTIONS RELATING TO A POTENTIAL MERGER ACQUISITION OR ALLIANCE WITH ALL PARTIES INCLUDING VALUEVISION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY NATIONAL MEDIA CLOSED AT 10875 UP 125 CENTS VALUEVISION CLOSED AT 925 UP 125 CENTS IN TRADING ON THE NASDAQ STOCK MARKET 9402220058 940222 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN UNION SAID IT WOULD ANALYZE ECONOMIC EFFECTS OF A SWISS HIGHWAY BAN ON FOREIGN TRUCKS CROSSING THE ALPS FORCING THEM TO BE PUT ON TRAINS WHEN THE MEASURE TAKES EFFECT IN 10 YEARS IN A SWISS REFERENDUM LAST WEEKEND 52 OF VOTERS UNEXPECTEDLY APPROVED THE INITIATIVE BACKED BY ENVIRONMENTAL GROUPS IT COULD HAVE FARREACHING EFFECTS ON EUROPEAN TRANSPORT POLICY PROPONENTS HAILED THE VOTE AS A SIGNAL THAT EUROPEAN GOVERNMENTS MUST FOCUS ON RAIL AND ROAD COMBINATIONS REDUCING AIR AND NOISE POLLUTION TRUCK TRAFFIC IN THE SWISS ALPS HAS INCREASED TO 2500 VEHICLES DAILY FROM 80 IN 1980 AND IS FORECAST TO EXPAND TO 6000 BY THE END OF THIS DECADE SWITZERLAND IS BUILDING AN ALPS RAIL AXIS FOR AT LEAST 103 BILLION TO INCREASE FREIGHT CAPACITY THE SWISS GOVERNMENT WHICH OPPOSED THE INITIATIVE FEARS EU RETALIATION THE SWISS ALPS ROUTE IS THE QUICKEST LINK BETWEEN NORTHERN AND SOUTHERN EUROPE SWITZERLAND ALREADY HAS STRICT TRUCK TRAFFIC RULES SUCH AS WEIGHT NIGHT AND SUNDAY CURBS THROUGH TRAFFIC IS THE MOST SENSITIVE SWISSEU ISSUE THE ADVERTISING SECTOR IN BRITAIN MAY GET AN UNTRADITIONAL BOOST FROM THE CHURCH OF ENGLAND THE COUNTRY'S OFFICIAL FAITH HAS BEEN FAULTED FOR BEING OUT OF TOUCH WITH ITS CONGREGATIONS WHICH HAVE BEEN SHRINKING FOR DECADES SO THE CHURCH IS PREPARING TO DELIVER ITS MESSAGE AS THOUGH IT WERE A CONSUMER PRODUCT CHURCH ADVISERS NOTING NO ETHICAL BAN RECOMMENDED AD CAMPAIGNS AS A CREATIVE EFFECTIVE APPROPRIATE EVEN AMUSING WAY TO REACH MORE PEOPLE PRESIDENT VACLAV HAVEL AND JEWISH GROUPS ASSAILED THE CZECH PARLIAMENT'S REJECTION OF A BILL TO RETURN ALL PROPERTY CONFISCATED BY NAZI GERMANY AND FORMER CZECHOSLOVAK GOVERNMENTS CRITICS BLAMED AN AMENDMENT STIPULATING THAT EXPROPRIATED PROPERTY HELD BY THE STATE BE RETURNED TO JEWS BUT THAT MUNICIPAL OR PRIVATE ENTITIES PROVIDE FINANCIAL COMPENSATION BUT KEEP PROPERTIES NAZI OCCUPIERS CONFISCATED JEWISH PROPERTY STARTING IN 1939 RESTITUTION LAWS APPLY FROM 1948 ANGOLA SLASHED THE VALUE OF ITS CURRENCY 29 IN A BID TO WIN FOREIGN CREDITS AND QUELL GROWING TENSION IN THE SOUTHERN AFRICAN NATION THE GOVERNMENT DEVALUED THE NEW KWANZA TO 17836 FROM 12640 TO THE US DOLLAR FURTHER DEVALUATIONS ARE TO FOLLOW UNTIL THE STATE EXCHANGE RATE MATCHES THE COMMERCECONTROLLING BLACK MARKET RATE NOW 120000 TO THE DOLLAR THE MOVES ARE PART OF A RADICAL ECONOMIC PACKAGE INCLUDING PRICE REFORMS AND PAY RAISES INFLATION IS RUNNING AT 1200 A YEAR IN ANGOLA ITS FINANCES HURT BY CIVIL WAR THE LEBANESE GOVERNMENT WILL ACCEPT BIDS FROM CONTRACTORS WORLDWIDE FROM NEXT MONDAY THROUGH MAY 13 FOR FIRSTSTAGE RECONSTRUCTION OF BEIRUT'S COMMERCIAL CENTER RAVAGED IN THE 197590 CIVIL WAR THE WORK ON ROADS UTILITIES AND COMMUNICATIONS TO BE COMPLETED BY 1999 COULD COST 550 MILLION IN THE OVERALL 185 BILLION PLAN COVERING 400 ACRES LEBANON HOPES TO RESTORE THE CAPITAL'S STATUS AS THE MIDEAST FINANCIAL HUB BY THE YEAR 2018 AN ECONOMIC COOPERATION PLAN BETWEEN SOUTH KOREA AND CHINA WOULD INCREASE TWOWAY TRADE MORE THAN SIXFOLD TO 56 BILLION BY THE YEAR 2001 SEOUL OFFICIALS SAID AT A BEIJING SUMMIT NEXT MONTH SOUTH KOREA INTENDS TO OFFER INVESTMENT AND JOINTVENTURE PROJECTS SUCH AS PASSENGER PLANES AUTO PARTS AND ELECTRONIC TELEPHONEEXCHANGE SYSTEMS AND KOREAN EXPORTS FOR NUCLEAR ENERGY PLANTS AND OTHER BUSINESSES TECHNOLOGY COOPERATION COULD COVER HIGHDEFINITION TELEVISION THE TWO COUNTRIES ESTABLISHED DIPLOMATIC TIES IN AUGUST 1992 CHINA IS KOREA'S THIRDLARGEST TRADING PARTNER AFTER THE US AND JAPAN TO STRENGTHEN RUSSIA'S EMBRYONIC BANKING SYSTEM THE CENTRAL BANK ORDERED MINIMUMCAPITAL REQUIREMENTS STARTING MARCH 1 THE RULES COULD SHRINK THE SECTOR AND HELP DEAL WITH AN EXPECTED INCREASE IN BANKRUPTCIES AS TIGHTER MONETARY POLICY AND MARKET REFORMS TAKE HOLD TO GET A LICENSE BANKS INITIALLY MUST HAVE RUBLEEQIVALENT CAPITAL OF 1 MILLION EUROPEAN CURRENCY UNITS OR 11 MILLION A MINIMUM THAT WILL INCREASE TO 5 MILLION ECUS BY 1999 UNDER CURRENT RULES A BANK CAN BE SET UP WITH CAPITAL OF JUST 63500 RUSSIA HAS 2000 COMMERCIAL BANKS AND MOST AREN'T EXPECTED TO MAKE THE CUT ONLY ABOUT 100 NOW MEET THE NEW STANDARDS MANY COMPANIES SET UP BANKS WHICH DEPEND ON THESE FIRMS FOR FUNDS LEAVING DEPOSITORS AT RISK IN COMPANY FAILURES WHICH SO FAR HAVE BEEN FEW SEPARATELY TAX ARREARS AS OF FEB 1 TOTALED 28 BILLION OR 12 OF LAST YEAR'S TOTAL COLLECTIONS RUSSIA'S TAX AGENCY SAID CITING WIDESPREAD TAX EVASION AMID CRISIS LEVELS OF DEBTS BETWEEN COMPANIES BRITAIN'S OFFICE OF FAIR TRADING OPENED AN INQUIRY INTO INCREASINGLY POPULAR PREPAID FUNERALS TO DETERMINE WHETHER ANY RULES ARE NEEDED TO ENSURE DELIVERY OF SERVICES UNDER CONTRACTS THAT CAN BE DECADES OLD JEANNE CALMENT BELIEVED TO BE THE WORLD'S OLDEST WOMAN TURNED 119 IN A RETIREMENT HOME IN ARLES FRANCE SHE GAVE UP HER TWO CIGARETTES A DAY TWO YEARS AGO BUT EATS CHOCOLATE EVERY EVENING 9402220057 940222 ASA SETS UP PANEL TO EVALUATE WAYS TO MAXIMIZE VALUE' FRAMINGHAM MASS ASA INTERNATIONAL LTD SAID ITS BOARD ESTABLISHED A COMMITTEE TO EVALUATE WAYS TO MAXIMIZE THE VALUE OF THE COMPANY FOR SHAREHOLDERS AMONG THE POSSIBILITIES TO BE CONSIDERED IS A PROPOSAL BY ASA'S CHAIRMAN AND CHIEF EXECUTIVE ALFRED C ANGELONE AND ITS PRESIDENT CHRISTOPHER J CRANE TO ACQUIRE FOUR OF ASA'S SOFTWARE BUSINESSES WHILE LEAVING ITS FASTGROWING ELECTRONIC TIME RECORDING BUSINESS TO BE THE SOLE BUSINESS OF THE PUBLIC COMPANY THAT BUSINESS HAS ANNUAL REVENUE OF ABOUT 10 MILLION MR ANGELONE SAID MR ANGELONE SAID HE AND MR CRANE WOULD EXCHANGE SOME OF THEIR 750000 SHARES EACH OF ASA AND A NOTE FOR THE FOUR SLOWERGROWING UNITS HE DECLINED TO PROVIDE DETAILS OF HIS OFFER THOSE UNITS WHICH MAKE SOFTWARE FOR FREIGHT FORWARDERS TIRE DISTRIBUTORS LAWYERS AND CATALOG MARKETERS HAVE COMBINED REVENUE OF ABOUT 18 MILLION MR ANGELONE SAID THE TIME RECORDING LINE HAS BEEN GROWING FAST BUT ITS GROWTH HAS BEEN MASKED BY PROBLEMS IN OTHER AREAS HE SAID WE BELIEVE IT IS IN THE BEST INTERESTS OF SHAREHOLDERS TO SEPARATE THE RAPIDLY GROWING LINE FROM OUR OTHER DIVISIONS MR ANGELONE SAID INVESTMENT BANKERS HAVE ADVISED HIM THAT INVESTORS PREFER TO BUY STOCK IN A FASTGROWING SINGLEPRODUCT COMPANY OVER ONE WITH BOTH GOOD AND BAD SOFTWARE LINES HE SAID HE WOULD CONTINUE TO HEAD THE PUBLIC COMPANY THE INDEPENDENT DIRECTORS COMMITTEE HEADED BY JOHN M GROGAN AN INVESTMENT BANKER WILL HIRE A FINANCIAL ADVISER AND PLANS TO FINISH THE EVALUATION BY APRIL 1 9402220056 940222 POLITICS & POLICY RTC HEARINGS TO GIVE GOP A CHANCE TO GRILL CLINTON AIDES ABOUT THRIFT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL HEARINGS THIS WEEK WILL GIVE REPUBLICAN LAWMAKERS THEIR FIRST CHANCE TO GRILL CLINTON ADMINISTRATION OFFICIALS ABOUT LEGAL ISSUES RELATED TO A FAILED ARKANSAS THRIFT THE SENATE BANKING COMMITTEE SCHEDULED A HEARING FOR THURSDAY ON THE PERFORMANCE OF THE RESOLUTION TRUST CORP WHICH IS A TREASURY DEPARTMENT UNIT AND THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY REPUBLICANS LED BY SEN ALFONSE D'AMATO OF NEW YORK PROMISE TO DELVE INTO HOW THE RTC IS HANDLING AN INVESTIGATION INTO ANY WRONGDOING LINKED TO FAILED MADISON GUARANTY SAVINGS & LOAN VARIOUS NEWS ACCOUNTS AND GOP ALLEGATIONS HAVE LINKED MADISON WHICH FAILED IN 1989 TO HELPING BILL AND HILLARY RODHAM CLINTON FINANCE THEIR INVESTMENT IN WHITEWATER DEVELOPMENT CO AN ARKANSAS LANDDEVELOPMENT VENTURE AND TO FUNDRAISING FOR MR CLINTON'S GUBERNATORIAL CAMPAIGN DEBTS AN INDEPENDENT COUNSEL IS INVESTIGATING SUCH CLAIMS THE GOP WILL GET A CRACK AT WITNESSES INCLUDING TREASURY SECRETARY LLOYD BENTSEN DEPUTY TREASURY SECRETARY ROGER ALTMAN WHO IS ALSO INTERIM RTC CHIEF ACTING FEDERAL DEPOSIT INSURANCE CORP CHAIRMAN ANDREW HOVE AND JONATHAN FIECHTER ACTING HEAD OF THE OFFICE OF THRIFT SUPERVISION THE FDIC AND OTS ALSO HAVE S&L REGULATORY POWERS UNDER GOP PRESSURE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH SET THE THURSDAY HEARING TO RECEIVE A REPORT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD WHICH MONITORS THE RTC MR BENTSEN IS CHAIRMAN OF THE OVERSIGHT BOARD AND MESSRS ALTMAN HOVE AND FIECHTER ARE AMONG ITS MEMBERS REP HENRY GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING COMMITTEE HAS AGREED TO HOLD A SIMILAR HEARING WHERE REP JIM LEACH R IOWA PLANS TO RAISE MADISON QUESTIONS MESSRS RIEGLE AND GONZALEZ HAD REBUFFED GOP DEMANDS FOR BROADER HEARINGS INTO THE WHITEWATERMADISON ISSUE ITSELF MR ALTMAN A COLLEGE CLASSMATE OF THE PRESIDENT AND A LONGTIME FRIEND OF THE CLINTONS IS EXPECTED TO GET SPECIAL GOP ATTENTION THURSDAY WE INTEND TO FULLY EXPLORE THE ACTIONS OF THE RTC AND ITS INTERIM LEADER IN THE MADISON/WHITEWATER CONTROVERSY INCLUDING THE DELAYED AND INCOMPLETE RESPONSES TO CONGRESSIONAL REQUESTS FOR INFORMATION AS WELL AS THE QUESTION OF MR ALTMAN'S RECUSAL SEN D'AMATO SAID SEN D'AMATO HAS CALLED FOR MR ALTMAN TO REMOVE HIMSELF FROM OVERSEEING MATTERS INVOLVING MADISON SEN D'AMATO THE BANKING PANEL'S RANKING REPUBLICAN ALSO HAS ACCUSED THE RTC OF DRAGGING ITS HEELS IN THE PROBE MR ALTMAN HAS SAID THE RTC IS CONDUCTING A VIGOROUS INVESTIGATION THE SENATE AND HOUSE BY 950 AND 3901 TALLIES HAVE VOTED TO EXTEND THE RTC'S STATUTE OF LIMITATIONS FOR FRAUD AND GROSS NEGLIGENCE IN CIVIL CLAIMS AGAINST S&L WRONGDOERS THE STATUTE OF LIMITATIONS WHICH WOULD OTHERWISE RUN OUT FOR MADISON AND SEVERAL HUNDRED OTHER THRIFTS ON MONDAY WILL BE EXTENDED UNTIL THE END OF 1995 WHEN THE RTC ITSELF EXPIRES SEN D'AMATO SAID BANKING COMMITTEE REPUBLICANS ALSO WILL QUESTION LAST WEEK'S FDIC REPORT THAT EXONERATED THE ROSE LAW FIRM IN ARKANSAS WHERE MRS CLINTON AND SEVERAL ADMINISTRATION OFFICIALS WERE PARTNERS OF VIOLATING ANY CONFLICTOFINTEREST RULES IN ITS DEALINGS WITH MADISON SOME HAVE CALLED THE REPORT A WHITEWASH SEN D'AMATO SAID ABOUT TWO WEEKS AGO RICKI TIGERT THE PRESIDENT'S NOMINEE TO HEAD THE FDIC RECUSED HERSELF FROM MATTERS INVOLVING THE CLINTONS AND MADISON MS TIGERT ALSO A FRIEND OF THE CLINTONS FACED POSSIBLE GOP EFFORTS TO BLOCK SENATE CONFIRMATION OF HER NOMINATION 9402220055 940222 LAW LEGAL BEAT COMPAQ WINS CASE THAT TRIED TO TIE KEYBOARDS TO WRIST INJURIES BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP HAS WON WHAT IS BELIEVED TO BE THE FIRST JURY VERDICT IN A CASE ATTEMPTING TO LINK COMPUTER KEYBOARDS WITH CRIPPLING WRIST INJURIES ATTORNEYS SAID THE DECISION IN A STATE COURT LAST WEEK IN HOUSTON COULD SET THE TONE FOR THOUSANDS OF SIMILAR PRODUCTLIABILITY CASES PENDING THROUGHOUT THE COUNTRY THE CLAIMS FILED PRIMARILY BY OFFICE WORKERS AND JOURNALISTS BEGAN FLOODING THE COURTS TWO YEARS AGO AND SEEK TO TIE REPETITIVE USE OF PERSONAL COMPUTERS AND WORD PROCESSORS TO A HOST OF DEBILITATING HAND DISORDERS THE MOST SERIOUS OF THOSE CARPAL TUNNEL SYNDROME DEVELOPS WHEN TISSUES IN THE WRIST SWELL FROM OVERUSE PINCHING A NERVE IN THE HAND DONALD MCFALL THE HOUSTON ATTORNEY REPRESENTING COMPAQ SAID THE JURY'S VERDICT WHICH FOUND THAT COMPAQ DIDN'T KNOW THAT ITS COMPUTERS COULD CAUSE INJURY AND THEREFORE WASN'T OBLIGATED TO WARN USERS CAME 55 MINUTES INTO ITS DELIBERATION MR MCFALL SAID THE DECISION EXPOSES THE SHORTCOMINGS IN A CLASS OF LITIGATION THAT SOME EXPERTS HAVE EQUATED IN SCOPE TO THE ASBESTOS CLAIMS OF THE 1980S THIS IS THE DISEASE DU JOUR MR MCFALL SAID THERE IS NO SCIENTIFIC OR MEDICAL EVIDENCE TO SHOW THAT A KEYBOARD CAUSES CARPAL TUNNEL SYNDROME THE HOUSTON CASE WAS FILED IN 1991 BY PATSY HEARD WOODCOCK A LEGAL SECRETARY WHO BLAMED COMPAQ FOR WRIST INJURIES THAT HAVE LEFT HER UNABLE TO WORK MS WOODCOCK WHO IS NOW ON DISABILITY AND CAN'T LIFT MORE THAN FIVE POUNDS WITH HER HANDS SUED THE COMPANY FOR MORE THAN 800000 IN DAMAGES AND LOST WAGES AND SAID THE COMPANY SHOULD HAVE KNOWN ITS PRODUCTS CAUSED INJURIES AND WARNED PEOPLE WHO BUY ITS MACHINES COMPAQ IN RESPONSE ARGUED THAT THERE WAS NO WAY TO TIE MS WOODCOCK'S WOES TO ITS PRODUCTS MR MCFALL SAID OTHER MEDICAL ISSUES INCLUDING STRESS AND SIGNIFICANT CHANGES IN WEIGHT COULD HAVE CAUSED MS WOODCOCK'S PROBLEMS THIS WAS THE ABSOLUTE HARDEST CASE TO WIN AND WE DIDN'T SAID MARK COLLMER MS WOODCOCK'S ATTORNEY BUT STEVEN PHILLIPS A NEW YORK ATTORNEY PURSUING ABOUT 2000 KEYBOARD CASES IN THE NORTHEAST SAID IT'S NOT UNCOMMON FOR EARLY PRODUCTLIABILITY TRIALS TO FAIL I AM SUPREMELY CONFIDENT THAT OVER TIME THESE CASES WILL SUCCEED HE SAID CLEARLY THE CASES ALREADY HAVE PROVED NETTLESOME FOR A COMPUTER INDUSTRY STRUGGLING THROUGH PRICE WARS AND SLIPPING PROFIT MARGINS AT LEAST THREE OTHER CASES AGAINST COMPAQ ARE PENDING IN HOUSTON AS ARE TWO CASES FILED AGAINST INTERNATIONAL BUSINESS MACHINES CORP BY AIRLINE RESERVATIONS CLERKS OTHER COMPANIES TARGETED BY SIMILAR SUITS INCLUDE APPLE COMPUTER INC ZEOS INTERNATIONAL LTD AND EASTMAN KODAK CO TWO YEARS AGO THE FLOOD OF REPETITIVESTRESS INJURY CASES BECAME SO HUGE THAT A FEDERAL JUDGE IN BROOKLYN NY ORDERED THE CASES CONSOLIDATED IN A SINGLE COURT MR PHILLIPS WHOSE FIRST KEYBOARD CASE IS EXPECTED TO GO TO TRIAL IN JUNE SAID THE HOUSTON VERDICT THE FIRST IN THE COUNTRY COULD HELP PLAINTIFFS' LAWYERS FINETUNE THEIR STRATEGY I PLAN TO STUDY THIS CLOSELY HE SAID WITH TIME AS THE PLAINTIFFS' COUNSEL LEARNS WHAT'S IN THE DEFENDANTS' FILES WE'LL UNDOUBTEDLY BE ABLE TO PREVAIL MEANTIME MR COLLMER SAID HIS NEXT CASE FILED BY ONE OF MS WOODCOCK'S FORMER COWORKERS IS SCHEDULED FOR TRIAL NEXT MONTH PARENTS CAN SUE AN ADOPTION AGENCY IF A SUPPOSEDLY HEALTHY CHILD TURNS OUT TO BE GENETICALLY IMPAIRED OR MENTALLY ILL A NEW YORK STATE COURT RULED ABOUT EIGHT OTHER STATES HAVE ACCEPTED THE LEGAL THEORY OF WRONGFUL ADOPTION UNDER WHICH PARENTS CAN WIN MONEY DAMAGES AND EVEN A REVOCATION OF THE ADOPTION MOST PARENTS JUST WANT TO BE ABLE TO PAY FOR THE CHILD'S MEDICAL EXPENSES NEARLY 2 MILLION SO FAR IN THE NEW YORK CASE ACCORDING TO PAPERS FILED BY THE PARENTS' ATTORNEY LEONARD R SPERBER OF MINEOLA NY IN THE CASE MANHATTAN ADOPTION AGENCY LOUISE WISE SERVICES ALLEGEDLY FAILED TO DISCLOSE THAT A BOY'S MOTHER HAD A LONG HISTORY OF MENTAL ILLNESS AND A FRONTAL LOBOTOMY BEFORE GIVING BIRTH THE BOY NOW IN HIS LATE 20S HAS A HISTORY OF MENTAL DISORDERS INCLUDING SCHIZOPHRENIA JUSTICE BEVERLY S COHEN SAID THAT TO BRING SUCH CASES PARENTS MUST SHOW THAT THE ADOPTION AGENCY LIED AND THAT THE PARENTS LOST MONEY AS A RESULT COURTS IN OTHER STATES HAVE ALLOWED SUCH SUITS IF THE AGENCY WAS SIMPLY NEGLIGENT CRITICS OF WRONGFULADOPTION LAWSUITS SAY THAT ADOPTIVE PARENTS SHOULDN'T BE ALLOWED TO SUE OVER THEIR CHILDREN ANY MORE THAN NATURAL PARENTS COULD SUE IF THEY HAD A CHILD WITH A DISABILITY BUT PARENTS ARE CONVINCING JUDGES THAT ADOPTION IS DIFFERENT ADOPTION IS A CHILDWELFARE SERVICE THEY SAY AND AGENCIES NEED TO MATCH CHILDREN'S BACKGROUNDS WITH COUPLES WHO CAN TAKE CARE OF THEM NANCY LEDYGURREN AN ATTORNEY FOR LOUISE WISE SERVICES SAID THE AGENCY DENIES THE ALLEGATIONS AND WILL CHALLENGE THE RULING JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9402220054 940222 ECONOMY LABOR UNIONS CONSIDER HOW TO SPEND FUNDS IN DRIVE FOR HEALTHCARE REFORM BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL BAL HARBOUR FLA LABOR UNIONS ARE DEBATING OVER HOW FAST TO SPEND FUNDS SET ASIDE TO PUSH FOR HEALTHCARE REFORM AND HOW TOUGH TO MAKE THE CAMPAIGN A GROUP OF UNIONS IS PRESSING AFLCIO PRESIDENT LANE KIRKLAND TO RELEASE FUNDS EARMARKED FOR AN ADVERTISING CAMPAIGN IN SUPPORT OF HEALTHCARE REFORM AND A RELEASE OF 750000 COULD COME AS EARLY AS TODAY BUT SO FAR ONLY ABOUT 500000 OF THE ROUGHLY 3 MILLION IN ADVERTISING FUNDS COLLECTED BY THE AFLCIO HAS BEEN SPENT I THINK THE NEXT MONTH OR SO IS EXCEPTIONALLY IMPORTANT SAID JACK SHEINKMAN PRESIDENT OF THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION THE UNION ALONG WITH THE AMERICAN FEDERATION OFSTATE COUNTY AND MUNICIPAL EMPLOYEES THE UNITED AUTO WORKERS AND THE MACHINISTS AND COMMUNICATIONS WORKERS' UNIONS ARE PRESSING FOR A SPEEDUP OF SPENDING THE DEBATE COMES AT A TIME WHEN THE UNIONS ARE TRYING TO STEP UP THEIR LOBBYING WITHIN THE DISTRICTS OF ABOUT 25 SWING MEMBERS OF THREE HOUSE COMMITTEES SET TO BEGIN DEBATING THE CLINTON HEALTHCARE PLAN IN EARLY MARCH THAT PROCESS IS EXPECTED TO LAST ABOUT SIX WEEKS AND IS SEEN AS CRITICAL TO THE SHAPING OF ANY REFORM PACKAGE IN ADDITION SOME OF THE UNIONS FAVORING A MORE POINTED CAMPAIGN WANT TO RUN ADS CITING THE HIGH LEVELS OF BENEFITS THAT MEMBERS OF CONGRESS RECEIVE AND CHALLENGING VIEWERS AND LISTENERS TO DEMAND THE SAME OF HEALTHCARE REFORM THE ADS WOULD NAME THE LOCAL LAWMAKER AND URGE VOTERS TO CALL HIM OR HER BUT AFTER COMPLAINTS FROM SOME MEMBERS OF CONGRESS HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO HAS ASKED THE LABOR GROUP TO TONE DOWN THE ADS MAKING THEM LESS CRITICAL OF CONGRESS I NEVER BELIEVE YOU SELL A POSITIVE WITH A NEGATIVE MR GEPHARDT SAID IN AN INTERVIEW YESTERDAY YOU SELL A POSITIVE WITH A POSITIVE AS A RESULT OF THE CONGRESSIONAL COMPLAINTS TOP OFFICALS OF THE LABOR FEDERATION FAVOR MAKING THE ADS LESS POINTED AMONG THE DISTRICTS IN WHICH ADS ARE SLATED TO RUN ARE THOSE OF REPUBLICANS MARGE ROUKEMA OF NEW JERSEY AND RICK SANTORUM OF PENNSYLVANIA AND DEMOCRATS MIKE KOPETSKI AND RON WYDEN OF OREGON AND JIM COOPER OF TENNESSEE AUTHOR OF A PLAN THAT COMPETES WITH THE CLINTON ADMINISTRATION'S REGARDLESS OF THE CURRENT DEBATE OVER HOW TO SPEND THE FUNDS ORGANIZED LABOR IS SHOWING NO SIGNS OF BACKING OFF ITS COMMITMENT TO SUPPORT THE ADMINISTRATION'S PROPOSAL THE CLINTON PLAN IS OUR ONLY REAL HOPE OF SOLVING THE HEALTHCARE CRISIS MR KIRKLAND DECLARED AND JERRY SHEA THE AFLCIO'S HEAD OF EMPLOYEE BENEFITS SAID THE LABOR MOVEMENT HAS SPENT OR PLEDGED MORE THAN 10 MILLION IN CASH AND SERVICES TO PUSH FOR HEALTHCARE REFORM IN ADDITION DESPITE LINGERING UNHAPPINESS WITH THE ADMINISTRATION AND MANY DEMOCRATIC LAWMAKERS OVER PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT UNION OFFICIALS SAID THEY EXPECT THAT AFTER THE MEETING HERE WHICH LASTS THROUGH THE WEEK LABOR MONEY WILL BEGIN FLOWING AGAIN TO THE DEMOCRATIC NATIONAL COMMITTEE AND TO INDIVIDUAL CANDIDATES UNION OFFICIALS STILL PLAN TO WITHHOLD FUNDS FROM THE CONGRESSIONAL CAMPAIGN COMMITTEES TO EXPRESS THEIR DISAPPROVAL OF NAFTA BUT ON HEALTH CARE AT LEAST THE UNIONS AND THE ADMINISTRATION CLEARLY REALIZE THAT THEY NEED EACH OTHER A POINT UNDERSCORED BY VICE PRESIDENT AL GORE IN AN APPEARANCE AT THE MEETING HERE THE UNIONS ARE ESSENTIAL FOR THEIR MANPOWER AND POLITICAL MACHINERY HE SAID THE UNIONS ARE KEY ALLIES IN THIS FIGHT AND WE'RE COUNTING ON THEM HE SAID 9402220053 940222 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE AND TIMOTHY K SMITH WE WOULD HAVE HAPPILY WATCHED MORE SKI JUMPERS CBS CAMERAS WERE MASTERFULLY PLACED TO CAPTURE THE 120METER HILL EVENT THE LARGELY NORWEGIAN CROWD OF 100000 MADE A TRULY JOYFUL AND ALMOST CONSTANT NOISE THE ATHLETES RESPONDED WITH THRILLING JUMPS WHILE ANNOUNCERS PHIL LIGGETT AND JEFF HASTINGS GOT CAUGHT UP IN THE EXCITEMENT AND GRACEFULLY EMBELLISHED IT TO SET THE SCENE CBS ATTACHED A CAMERA TO A JUMPER'S SKIS THAT PROVED AS MR LIGGETT SAID THE SPORT IS REALLY REALLY SCARY BY THE TIME MR LIGGETT SIGNED OFF SAYING THIS HAS BEEN SPORT AT ITS VERY BEST A VIEWER COULD ONLY AGREE VIEWERS MAY BE COMPLAINING ABOUT CBS'S COVERAGE OF THE GAMES BUT THEY ARE WATCHING IN LARGE NUMBERS CBS CONTINUED TO WIN ALL OF THE GOLD MEDALS OF TV RATINGS OVER THE WEEKEND CULMINATING WITH SUNDAY NIGHT'S BROADCAST WHICH HAD THE SECONDLARGEST AUDIENCE EVER FOR SUMMER OR WINTER GAMES AN ESTIMATED 78 MILLION PEOPLE ACCORDING TO PRELIMINARY AC NIELSEN CO FIGURES CBS DREW 292 OF THE NATION'S 942 MILLION TV HOUSEHOLDS CBS DREW 258 SATURDAY AND 275 FRIDAY NUMBERS FOR THE OTHER NETWORKS ARE ONLY AVAILABLE FOR 30 MAJOR CITIES AND THEY SHOW WHAT A ROUT CBS IS INFLICTING ON ITS COMPETITORS ON SATURDAY THE CLOSEST COMPETITOR TO CBS WAS ABC WHICH DREW A PALTRY 63 FOR THE FIRST NINE NIGHTS OF LILLEHAMMER CBS IS AVERAGING 256 WELL BEYOND THE 186 THAT THE NETWORK PROMISED ADVERTISERS AND WOMEN'S FIGURE SKATING HASN'T EVEN AIRED YET TOO MUCH OF THE TIME CBS WAS GASPING SUNDAY AND MONDAY TO FILL UP ITS OLYMPIC BROADCAST HOURS IF THE NETWORK WERE WILLING TO SHOW MORE OF THE UNPOPULAR WITH AMERICANS EVENTS THERE MIGHT BE ENOUGH SPORT BUT WINTER OLYMPICS SIMPLY DON'T HAVE ENOUGH EVENTS DEEMED OF INTEREST TO AMERICANS TO FILL THE EIGHTHOURPLUS BROADCAST DAYS THAT CBS GIVES THEM ON WEEKENDS THE RESULT IS FREQUENT TEDIUM TEASING OF VIEWERS AND OCCASIONAL OUTRIGHT BLATHER MARK PHILLIPS DID A TAPED PROFILE OF JAYNE TORVILL AND CHRISTOPHER DEAN THAT HELPED CBS FILL UP TIME UNTIL THE ICE DANCERS' PERFORMANCE FINALLY WAS SHOWN SUNDAY NIGHT IT INCLUDED A BIT OF THEIR FAMOUS DANCE TO RAVEL'S BOLERO AT SARAJEVO 10 YEARS AGO YES THAT WAS GREAT ICE DANCING BUT MR PHILLIPS SAID IT MARKED PEOPLE'S LIVES LIKE OTHER GREAT WORLD EVENTS SO HELP US HE SAID THAT PEOPLE ASK EACH OTHER WHERE WERE YOU DURING THE MOON LANDING WHERE WERE YOU FOR BOLERO IN SPITE OF THE TAWDRINESS THAT HAS ENGULFED WOMEN'S FIGURE SKATING THESE GAMES CONTINUE TO GIVE GIRLS AROUND THE WORLD A NEW GENERATION OF SPORTING ROLE MODELS OVER THE WEEKEND PICABO STREET AND PERNILLA WIBERG JOINED STINE LISE HATTESTAD AND DONNA WEINBRECHT IN THIS ALLTOOSMALL CATEGORY INFURIATINGLY CBS SAW FIT TO BROADCAST A PROFILE OF RUSSIAN NORDIC SKIER YELENA VALBI WITH THE SIMPLE MESSAGE THAT ELITE ATHLETES MAKE BAD MOTHERS IT FOCUSED ALMOST ENTIRELY ON THE ANGUISH MS VALBI FELT ABOUT LEAVING HER SON IN THE CARE OF HIS GRANDMOTHER FOR SIX MONTHS OF EACH YEAR WHILE SHE TRAVELED THE SKIING CIRCUIT I ONLY HOPE THAT HE CAN FORGIVE ME FOR WHAT I HAVE DONE TO HIM NO WORD YET FROM CBS ON THE DISTRESS OF OLYMPIC FATHERS 9402220052 940222 INTERNATIONAL BISHOP IS MEDIATING TENSE NEGOTIATIONS BETWEEN REBELS MEXICAN GOVERNMENT BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL SAN CRISTOBAL DE LAS CASAS MEXICO FACETOFACE NEGOTIATIONS BETWEEN THE MEXICAN GOVERNMENT AND REBELS FINALLY BEGAN HERE YESTERDAY WITH THE SETTING OF PRIORITIES FOR NATIONAL AND STATE ISSUES IN A PROCESS EXPECTED TO DRAG ON FOR SOME TIME THE OPENING OF THE TALKS WAS TENSE BECAUSE THE GUERRILLAS RECENTLY HAVE BROADENED DEMANDS FOR POLITICAL AND LANDPOLICY REFORMS AND HAVE SAID THEY MIGHT NOT DISARM EVEN IF PEACE IS ACHIEVED IN A BRIEF CATHEDRAL NEWS CONFERENCE LAST NIGHT THE CHARISMATIC SUBCOMMANDER MARCOS OF THE SELFSTYLED ZAPATISTA ARMY ASSERTED THAT HIS COMPANIONS DID NOT COME TO ASK FOR PARDON NEARBY ON THE ALTAR OTHER MASKED REBEL LEADERS LISTENED ALONG WITH CHIAPAS BISHOP SAMUEL RUIZ ONE THING THAT HAS ALREADY BECOME CLEAR IS THE PIVOTAL ROLE BISHOP RUIZ WILL PLAY THE BISHOP IS HOSTING THE NEGOTIATIONS IN HIS CATHEDRAL HERE AND IS SO TRUSTED BY THE REBELS THAT HE HAS BEEN CHOSEN AS THE MEDIATOR IN THE PEACE TALKS HIS INVOLVEMENT IS FORCING THE MEXICAN CHURCH AND THE COUNTRY TO SEARCH THEIR SOULS OVER THE LIBERATION THEOLOGY THAT BISHOP RUIZ ADVOCATES THE THEOLOGY ARGUES THAT THE CHURCH NEEDS TO AGGRESSIVELY FIGHT SOCIAL PROBLEMS SO AS TO LIBERATE THE POOR FROM CLASS AND ECONOMIC OPPRESSION THE THEOLOGY ONCE HAD SPREAD THROUGHOUT CENTRAL AMERICA BUT HAS APPEARED TO BE WANING FOR YEARS THE EXTENT OF PRIESTS' INVOLVEMENT IN THE REBELLION ISN'T CLEAR BUT THE BISHOP'S IDENTIFICATION WITH THE GUERRILLAS HAS MADE HIM SO CONTROVERSIAL THROUGHOUT MEXICO THAT MANY ACCUSE HIM OF HELPING INSPIRE THE REBELLION THAT BROKE OUT JAN 1 THE GOVERNMENT INITIALLY RUSHED TO BLAME THE REBELLION ON LIBERATION THEOLOGY LOCAL OFFICIALS ACCUSED PRIESTS AND NUNS OF ASSISTING REBELS BUT THE GOVERNMENT HAS SINCE BACKED OFF ITS CLAIMS STILL ANALYSTS SAY THEY SEE PLENTY OF SIGNS THAT PRIESTS AT LEAST INFLUENCED THE REBELS THEY POINT TO EPISTLES WRITTEN BY SUBCOMMANDER MARCOS WHICH READ MORE LIKE MATTHEW THAN LIKE MARX GUSTAVO ARMENDARIS WHO SERVED BRIEFLY AS AN INTERIM GOVERNOR HERE SAYS THE PRIESTS ARE INVOLVED I AM SURE OF IT SUBCOMMANDER MARCOS HIMSELF IN AN INTERVIEW PUBLISHED OVER THE WEEKEND IN THE MAGAZINE PROCESO DENIES BEING A PRIEST OR EVEN A FORMER SEMINARIAN HE SAYS HE WAS A JOURNALIST BEFORE BECOMING A GUERRILLA THE MULTILINGUAL SUBCOMMANDER MARCOS SAYS HE LEARNED HIS ENGLISH FROM AMERICAN ADULT MAGAZINES NOT THROUGH THE CHURCH HE SAYS HE HASN'T BEEN IN A CHURCH SINCE HE WAS EIGHT YEARS OLD WHILE BISHOP RUIZ HAS DENIED COMPLICITY WITH THE GUERRILLAS HE HAS SAID I FEEL RESPONSIBLE FOR HAVING HELPED OR TRIED TO HELP CREATE AWARENESS OF THE SITUATION WE LIVE IN WHICH HE SAYS LED TO THESE UNFORTUNATE CIRCUMSTANCES AND A PRICE OF SO MUCH BLOODSHED BISHOP RUIZ HAS LONG BEEN CONTROVERSIAL LAST YEAR THE GOVERNMENT REPORTEDLY TRIED TO PRESSURE THE VATICAN INTO REMOVING HIM FROM CHIAPAS EVEN NOW GOVERNMENT OFFICIALS MONITOR HIS NEWS CONFERENCES AND HOMILIES YET WHEN THE MEXICAN GOVERNMENT NEEDED SOMEONE TO TRY TO BROKER PEACE WITH THE REBELS IT ASKED BISHOP RUIZ TO STEP IN AND WITH THE CONFIDENCE OF THE REBELS IT IS BISHOP RUIZ NOT THE GOVERNMENT WHO NOW CONTROLS MEDIA ACCESS TO THE NEGOTIATIONS WHEN THE 69YEAROLD BISHOP FIRST ARRIVED AT HIS POST 34 YEARS AGO ONE ANTHROPOLOGIST SAYS HE WAS CONSIDERABLY MORE CONSERVATIVE BUT AS THE BISHOP SAW ABUSES AGAINST THE INDIANS HIS ACTIVISM GREW COLLECTIVELY THE BISHOP AND HIS PRIESTS HAVE CHALLENGED THE ESTABLISHED ORDER OF CHIAPAS WHERE THE AGRARIAN REFORMS OF THE 19101920 MEXICAN REVOLUTION DESIGNED TO TAKE LAND FROM THE RICH AND GIVE IT TO THE POOR LARGELY BYPASSED THE INDIAN DESCENDANTS OF THE MAYAN EMPIRE THE BISHOP AND HIS PRIESTS HELPED KEEP LIBERATION THEOLOGY ALIVE THROUGHOUT MEXICO TOO BEFORE THE START OF THE REBELLION ONE PRIEST ESTIMATED THAT ABOUT 10 OF MEXICO'S PRIESTS SUBSCRIBED TO LIBERATION THEOLOGY NOW PRIESTS THROUGHOUT MEXICO SAY THAT AFTER CHIAPAS AND THE EXPOSURE OF THE MISERY OF INDIAN LIFE HERE MORE PRIESTS MAY EMBRACE THE DOCTRINE WHILE A KEY VATICAN PRONOUNCEMENT HAS WARNED LIBERATION THEOLOGIANS AGAINST OVERLY POLITICIZED VIEWS AND MARXIST INTERPRETATIONS OF THE SCRIPTURES THE VATICAN ALSO SAYS ITS WARNING SHOULDN'T BE INTERPRETED AS AN EXCUSE FOR INDIFFERENCE IN THE FACE OF MISERY AND INJUSTICE ARCHBISHOP ADOLFO SUAREZ OF MONTERREY AN INDUSTRIAL CITY 150 MILES FROM THE TEXAS BORDER CALLS CHIAPAS A CRY FOR ALL THE COUNTRY AND THE LEADER OF THE MEXICAN BISHOPS CONFERENCE SAYS THAT THE CHURCH MUST REVISE ITS PASTORAL METHODS TO ATTACK SOCIAL PROBLEMS BETTER MEXICO'S HISTORY OF CHURCHSTATE RELATIONS HAS ALWAYS BEEN COMPLICATED IN MEXICO'S TWO LARGEST INDEPENDENCE FIGHTS THE CATHOLIC CHURCH SIDED WITH THE POLITICAL LOSERS THE LANDED ELITE RETRIBUTION WAS ROUGH THE CONSTITUTION OF 1917 PROHIBITED PRIESTS FROM VOTING DISCUSSING POLITICS OWNING PROPERTY OR OPERATING CATHOLIC SCHOOLS ONLY TWO YEARS AGO DID PRESIDENT CARLOS SALINAS REFORM THE CONSTITUTION AND FORMALLY RECOGNIZE THE CHURCH EVEN THOUGH THE VAST MAJORITY OF MEXICANS ARE CATHOLIC THE LIBERATION THEOLOGIANS SHOW NO SIGNS OF BACKING AWAY FROM THEIR PREFERENTIAL OPTION FOR THE POOR A BASIC TENET OF LIBERATION THEOLOGY AND THEIR CRUCIAL ROLE IN THE CHIAPAS PEACE TALKS WILL LET THEM HAMMER HOME THEIR POINTS AT HIS CATHEDRAL RECENTLY BISHOP RUIZ USED HIS HOMILY TO URGE THE WEALTHY TO FIND WAYS TO REDISTRIBUTE THEIR WEALTH TO LOWER THE MISERY AND HOPELESSNESS THAT CAN PRODUCE NEW OUTBREAKS OF VIOLENCE AS HE TALKED CAMERAS FLASHED AND TELEVISION CAMERAS WHIRRED 9402220051 940222 BUSINESS BRIEF COMSAT NET ROSE 7 IN FOURTH QUARTER VIDEO SERVICE GROWS BETHESDA MD COMSAT CORP REPORTED A 7 INCREASE IN FOURTHQUARTER PROFIT REFLECTING GROWTH IN ITS VIDEOONDEMAND AND SATELLITEBASED WIRELESS SERVICES NET INCOME TOTALED 181 MILLION OR 44 CENTS A SHARE UP FROM 169 MILLION OR 43 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 1675 MILLION FROM 1565 MILLION COMSAT PROVIDES VOICE VIDEO AND DATA SERVICES AND IS THE LARGEST OWNER OF THE GLOBAL INTELSAT AND INMARSAT COMMUNICATIONS SATELLITE NETWORKS FOR ALL OF 1993 REVENUE ROSE TO 6404 MILLION FROM 5636 MILLION AND THE COMPANY SAID IT IS ON TRACK TO REPORT REVENUE OF 1 BILLION BY 1996 REVENUE FOR SATELLITEBASED WIRELESS SERVICES FOR MOBILE CUSTOMERS ROSE 20 TO 190 MILLION DUE TO TRAFFIC GROWTH WHILE REVENUE INCREASED 22 TO 958 MILLION IN THE VIDEOONDEMAND UNIT REFLECTING HIGHER DEMAND BY THE HOTEL INDUSTRY REVENUE IN THE INTERNATIONAL COMMUNICATIONS SEGMENT WHICH RELATES TO SATELLITEBASED PHONE AND VIDEO SERVICES BETWEEN COUNTRIES WERE FLAT WITH 1992 RESULTS OF 250 MILLION NET INCOME FOR 1993 TOTALED 753 MILLION OR 185 A SHARE COMPARED WITH 429 MILLION OR 109 A SHARE IN 1992 SEPARATELY COMSAT AND RADIATION SYSTEMS INC SAID TWO CLASSACTION LAWSUITS BY PURPORTED SHAREHOLDERS HAVE BEEN FILED IN NEVADA OVER THE PREVIOUSLY ANNOUNCED MERGER INVOLVING THE TWO COMPANIES RADIATION SYSTEMS MAKES A BROAD RANGE OF COMMUNICATION SYSTEMS AND COMPONENTS THE SUIT SEEKS AMONG OTHER THINGS TO ENJOIN THE MERGER COMSAT SAID COMSAT AND RADIATION SYSTEMS SAID THAT LAWSUITS ARE WITHOUT MERIT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMSAT FELL 375 CENTS TO 26625 9402220050 940222 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY WHY IS THIS MAN SMILING HE'S A SKATING IMPRESARIO BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER SCANNING THE PACKED CROWD AT HER NEWS CONFERENCE TONYA HARDING SPOTS A DAPPER CALIFORNIAN WITH A DEEP TAN IN THE FRONT ROW WITH A SMILE SHE MOUTHS HER FIRST PUBLIC WORDS OF THE OLYMPICS I LOVE YOU FIELDING VALENTINES FROM THE SPORTS WORLD'S MOST NOTORIOUS WOMAN IS ALL IN A DAY'S NETWORKING FOR SKATING SUPERAGENT MICHAEL ROSENBERG OFF THE SLOPES AND THE ICE THE OLYMPICS IS THE WORLD'S BIGGEST TRADE SHOW AND MR ROSENBERG WORKS IT BETTER THAN ANYONE MOVING FROM HANDSHAKE TO HANDSHAKE LIKE A SQUAREDANCER IN A HIGHSTAKES VIRGINIA REEL HE SPRINTS OFF TO GREET THE US FIGURE SKATING ASSOCIATION'S PUBLICIST FANTASTIC JOB HOLD OUT FOR ANOTHER 10 DAYS AND YOU'LL WIN A PULITZER PRIZE HERE'S FORMER SKATING MEDALIST BRIAN ORSER NOW A CANADIAN BROADCASTER BRIAN DON'T FORGET THE NEW SUPERSENTIMENTAL FAVORITE OF ICEDANCE ELIZABETH PUNSALAN DO A NUMBER ON HER WOULD YOU ACROSS THE STREET SAUNTERS NEW GOLDMEDAL SKIER TOMMY MOE TOMMY MOE 'RAY TEAM ALL AMERICA'S PROUD OF YOU MR MOE A BRANDNEW ACQUAINTANCE GRINS WITH SURPRISE AND SAYS THANKS PLAYING THE CROWDS HAS YIELDED MR ROSENBERG A GLITTERING LIST OF CLIENTS INCLUDING 16YEAROLD OKSANA BAIUL WHO IS FAVORED TO SLIP INTO THE TONYAANDNANCY CIRCUS THIS WEEK AND STEAL A GOLD MEDAL FOR YEARS THE LIST ALSO INCLUDED MS HARDING HERSELF WHOM MR ROSENBERG DROPPED LAST FALL AFTER A STORMY RIFT BUT CONTINUES TO DEFEND IN THE MEDIA HIS TOP MALE SKATER 1992 GOLDMEDALIST VIKTOR PETRENKO WAS A STUNNING DISAPPOINTMENT HERE NOW THE AGENT IS WORKING THE BACK CORRIDORS TO SIGN THE MAN WHO TOPPLED HIM ALEKSEI URMANOV OF RUSSIA AND THE DASHING FRENCHMAN PHILIPPE CANDELORO WHO TOOK THE BRONZE I'M HUSTLING I'M HUSTLING HE SAYS PUFFING NERVOUSLY ON A CIGARILLO EVERYONE THINKS OF THIS AS ENTERTAINMENT BUT THINK HOW MUCH MONEY'S AT STAKE IT'S BUSINESS IT'S BIG BUSINESS MR ROSENBERG IS ONE OF TWO AGENTS WHO DOMINATE THE FIGSBIZ WHICH WAS BOOMING BEFORE NANCY KERRIGAN GOT WHACKED AND HAS SINCE VAULTED INTO THE STRATOSPHERE HIS SMALL AGENCY IN PALM DESERT CALIF REPRESENTS 36 SKATERS AND PRODUCES A ROADSHOW STARRING MANY OF THEM WORLD CUP FIGURE SKATING CHAMPIONS HE COMPETES WITH HIS MAMMOTH RIVAL INTERNATIONAL MANAGEMENT GROUP BY PROMISING HIS CLIENTS A HUGE DOSE OF CHARM AND ATTENTION HE HAS SUCH A PERSONAL RELATIONSHIP WITH HIS SKATERS YOU DON'T FEEL LIKE A NUMBER IN A COMPANY SAYS MS PUNSALAN THE ICE DANCER JUST DAYS BEFORE THE GAMES WHEN MS PUNSALAN RECEIVED THE HORRIFYING NEWS OF HER FATHER'S MURDER ALLEGEDLY COMMITTED BY HER MENTALLY ILL BROTHER MR ROSENBERG OFFERED IMPORTANT SUPPORT AND HANDLED ALL OF THE PRESS CALLS A MEDAL CAN BRING A WINNER HUNDREDS OF THOUSANDS OF DOLLARS A YEAR IN SHOWS AND ADS AND MAYBE MILLIONS NOW THAT FIGURE SKATING IS BIGGER THAN THE BOBBITTS MR ROSENBERG POCKETS 15 AND WATCHES HIS ROADSHOW SALES SOAR A VICTORY FOR MS BAIUL MY JEWEL MY BABY COULD LIFT HIS TOUR'S ANNUAL REVENUE TO 10 MILLION FROM 6 MILLION HE SAYS IT WOULD ALSO BRING HEFTY ROYALTIES FROM A DEAL HE INKED JUST THIS MONTH FOR AN OKSANA BAIUL LINE OF SKATING CLOTHES WITH ELITE CURRENTLY A BIG MAKER OF GYMNASTICS OUTFITS THEY WANT TO GET INVOLVED WITH SKATING BECAUSE OF TONYA AND NANCY MR ROSENBERG SAYS HE NOTES THAT A CBS PROFILE SHOWS THE GIRLISH UKRAINIAN SKATER IN HER BEDROOM WITH HER TEDDY BEAR GIGGLING AND NAMING HER FAVORITE FOOD SNICKERS SNICKERS SNICKERS IF SHE WINS I'LL CALL SNICKERS AND IF THEY DON'T RESPOND POSITIVELY OKSANA'S NOT GOING TO BE SAYING SNICKERS ANYMORE MR ROSENBERG LAUGHS ALSO WAITING IN THE WINGS ARE POSSIBLE DEALS FOR A BOOK AND A TV MOVIE ABOUT THE UKRAINIAN SKATER'S DRAMATIC RISE AFTER THE DEATH OF HER MOTHER AND THE DISAPPEARANCE OF HER FATHER EVERYONE'S INTERESTED IN HER IF SHE WINS THE OLYMPICS HE SAYS IT'S LIKE GOING TO THE KENTUCKY DERBY YOU HAVE YOUR HORSES AND YOU SIT IN THE STANDS AND PRAY HE SAYS IN FACT MR ROSENBERG DOESN'T SIT MUCH AT THE OLYMPICS ON THE FIRST NIGHT OF THE ICEDANCING COMPETITION HE STRIDES PAST HIS ASSIGNED SEAT IN THE HAMAR OLYMPIC AMPHITHEATER SURVEYS THE CROWD AND FINDS THE ROW HE WANTS DIRECTLY BEHIND THE CBS BROADCAST BOOTH LEANING ON THE BOOTH HE BANTERS WITH BROADCASTERS VERNE LUNDQUIST AND TRACY WILSON HEY VERNE SAW YOU ON THE COVER OF FORBES MAGAZINE WITH THE 8 MILLION CONTRACT I NEGOTIATED HE SAYS HEY MICHAEL WHAT'S ON YOUR SHOE GUFFAWS MR LUNDQUIST ACROSS THE RINK MR ROSENBERG SPOTS A LARGE GLAMOROUS WOMAN IN AN ENORMOUS FUR COAT SHE BLOWS HIM A SLOW THEATRICAL KISS HE BLOWS A KISS BACK THAT'S NATALIA DUBOVA THE MOST FAMOUS DANCE COACH IN RUSSIA HE SAYS BACK AT HIS SEAT HE HAS A NEW NEIGHBOR FORMER AMERICAN SKATING SUPERSTAR DICK BUTTON NOW A BUSY SPORTSCASTER AND SKATING BUSINESSMAN THEY SWAP SKATING TRIVIA QUESTIONS AND THEN MR ROSENBERG BOUNDS AWAY AGAIN FOR ANOTHER SMOKE HE IS SMILING WHEN HE RETURNS PHILIPPE AND I TALKED HE SAYS DROPPING HIS VOICE EXCELLENT EXCELLENT SUDDENLY HERE COMES ONE OF THE HOTTEST CELEBRITIES DAVID LETTERMAN'S MOTHER DOROTHY MENGERING ON ASSIGNMENT FOR HER SON SHE SITS DOWN BETWEEN MR ROSENBERG AND MR BUTTON TRAILING AN ECSTATIC COMEDY WRITER THIS IS THE GREATEST PIECE OF LUCK EVER SAYS THE WRITER I HAPPEN TO HAVE JUST RECEIVED IN THE MAIL SOME DAVE BUTTONS SO NOW DAVE'S MOM GETS TO GIVE DICK BUTTON A DAVE BUTTON AS A CAMERAMAN FILMS THE IMMORTAL SCENE MR ROSENBERG LEANS OVER DAVID WAS THE BEST MAN AT A WEDDING AT MY HOME HE SAYS HE WAS THE MOST DOWNTOEARTH MAN MR ROSENBERG LANDED HIS MOST FAMOUS CLIENT EVER IN 1991 AFTER SHE WON THE AMERICAN CHAMPIONSHIPS ONLY SKATING COGNOSCENTI HAD HEARD OF MS HARDING BUT IT WAS A COUP FOR MR ROSENBERG HE WON'T SAY MUCH ABOUT WHAT MS HARDING WAS LIKE AS A CLIENT BUT SAYS THEY DEVELOPED IRRECONCILABLE DIFFERENCES TOWARDS HER CAREER PLANS OTHERS SAY THERE WERE LOTS OF ANGUISHING DAYS WHERE MS HARDING WAS UNPREDICTABLE MISSED AIRPLANES SHOWED UP LATE FOR APPEARANCES AND FOUGHT OVER MONEY MANY IN THE SKATING WORLD THOUGHT IT WAS A TERRIBLE BLACK EYE FOR MR ROSENBERG WHEN THE TWO SPLIT ESPECIALLY AFTER MS HARDING TRIUMPHED AT THE US CHAMPIONSHIPS IN DETROIT NOW PEOPLE SAY MR ROSENBERG DODGED A BULLET HE WOULD EITHER HAVE BEEN SUSPECTED OF KNOWING ABOUT THE ASSAULT ON MS KERRIGAN OR ACCUSED OF BEING AN ALOOF AGENT WHO DIDN'T INTIMATELY FOLLOW HIS CLIENT'S AFFAIRS BACK AT THE RINK IN HAMAR MR ROSENBERG'S CLIENTS MAYA USOVA AND ALEKSANDR ZHULIN ARE TAKING THE ICE HERE IT COMES MY STOMACH IS GETTING TIGHTER HE GROANS I'M GOING TO THROW UP I CAN'T WATCH THIS HE HIDES HIS EYES THE JUDGES POST EXCELLENT SCORES AND MR ROSENBERG CHEERS WERE THEY GORGEOUS OR WERE THEY GORGEOUS HE LEANS BACK IN HIS CHAIR SIGHS DEEPLY WITH RELIEF AND LEANS OVER TO MR BUTTON TO TALK ABOUT TV RIGHTS 9402220049 940222 HONDA PLANS TO UNWIND CROSSHOLDING WITH ROVER DEALING A SETBACK TO BMW BY WALL STREET JOURNAL REPORTERS JATHON SAPSFORD IN TOKYO AUDREY CHOI IN HAMBURG GERMANY AND KRYSTAL MILLER IN DETROIT HONDA MOTOR CORP SAID IT WILL UNWIND ITS CROSSSHAREHOLDING ARRANGEMENT WITH THE ROVER CARS OF BRITAIN DEALING A SETBACK TO BMW JUST WEEKS AFTER THE GERMAN COMPANY ACQUIRED A MAJORITY INTEREST IN THE UK CAR MAKER IN MUNICH OFFICIALS AT BAYERISCHE MOTOREN WERKE AG WHICH HAD HOPED TO MAINTAIN ROVER'S RELATIONSHIP WITH HONDA SAID THE COMPANY AGREED TO HONDA'S REQUEST THE ARRANGEMENT UNDER WHICH HONDA OWNS 20 OF ROVER AND ROVER HOLDS A 20 STAKE IN HONDA UK MANUFACTURING LTD PROBABLY WILL BE DISSOLVED THOUGH A SWAP OF THE STAKES SAID UWE MAHLA SPOKESMAN FOR BMW THE TERMS AND TIME FRAME OF SUCH A TRANSACTION STILL NEED TO BE WORKED OUT MR MAHLA SAID BUT A HONDA SPOKESMAN SAID HONDA WASN'T SEEKING AN IMMEDIATE END TO ITS PRODUCTSHARING AND TECHNOLOGYSHARING ARRANGEMENTS WITH ROVER NOTING THAT THE COMPANY WILL REVIEW THOSE TIES LATER IN TIME HOWEVER HONDA SEEMS POISED TO PHASE OUT ITS TIES WITH ROVER AND GO IT ALONE IN BRITAIN A BASE THAT IT CONSIDERS CRUCIAL TO ITS FORTUNES IN THE EUROPEAN MARKET IN THE FUTURE WE INTEND TO CREATE A MORE INDEPENDENT OPERATION IN EUROPE USING OUR OWN RESOURCES HONDA PRESIDENT NOBUHIKO KAWAMOTO SAID IN A STATEMENT HONDA'S DECISION REPRESENTS A BLOW TO BMW AND REFLECTS THE FACT THAT HONDA HAS BIGGER PROBLEMS TO SOLVE BMW CHAIRMAN BERND PISCHETSRIEDER HAD GONE TO TOKYO IN HOPES OF PERSUADING THE JAPANESE CAR MAKER'S EXECUTIVES TO HANG ON TO THEIR REMAINING 20 STAKE THE NEWS SENT BMW SHARES DOWN 195 MARKS 1130 TO CLOSE AT 848 MARKS IN FRANKFURT TRADING MONDAY IN TOKYO HONDA SHARES CLOSED AT 1660 YEN 1591 UP 40 YEN SINCE THE DEAL WAS ANNOUNCED FOR BMW TO ACQUIRE AN 80 SHARE OF ROVER CARS FROM BRITISH AEROSPACE PLC ON JAN 31 THE GERMAN LUXURY CAR MAKER HAD REPEATEDLY SAID IT WOULD LIKE THE COOPERATION AGREEMENTS BETWEEN HONDA AND ROVER TO CONTINUE HONDA SUPPLIES NUMEROUS ENGINES TRANSMISSIONS AND DESIGN LICENSES TO ROVER ROVER IN RETURN SUPPLIES HONDA WITH BODY PARTS AND PRODUCES SOME CARS FOR HONDA BUT OFFICIALS AT HONDA WHICH IS WIDELY CREDITED WITH TURNING ROVER AROUND HAVE EXPRESSED CONCERN ABOUT HOOKING UP WITH COMPETITOR BMW BMW'S SALES SOARED 19 IN THE US LAST YEAR FUELED BY NEW PRODUCTS AND COMPETITIVE PRICING A CRUCIAL QUESTION FOR BOTH COMPANIES IS HOW QUICKLY THE TIES MIGHT BE SEVERED BECAUSE OF THE DEPTH OF THEIR COOPERATION NEITHER SIDE CAN ABRUPTLY END THE RELATIONSHIP WITHOUT ENCOUNTERING PRODUCTION SNARLS IF HONDA WERE TO TERMINATE THE CONTRACTS SHORT TERM THEY WOULD BE LEFT HOLDING LARGE QUANTITIES OF PARTS INTENDED FOR ROVER WITH NO CUSTOMER AND WOULD NOT BE ABLE TO SELL A GREAT NUMBER OF HONDA CARS IN EUROPE BECAUSE ROVER WOULD NO LONGER BE BUILDING THEM SAID ONE BMW OFFICIAL THE BIGGEST PROBLEM FOR HONDA RIGHT NOW IS TRYING TO SELL MORE CARS SAID PETER BOARDMAN ANALYST WITH UBS SECURITIES IN TOKYO MR BOARDMAN EXPECTS HONDA TO REPORT TUESDAY THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE OCTOBERDECEMBER QUARTER FELL 81 FROM THE SAME PERIOD LAST YEAR TO JUST TWO BILLION YEN 192 MILLION HONDA HAS SEEN ITS PERFORMANCE STALL IN AMERICA ITS LARGEST SINGLE MARKET CONSIDER THE REMODELED ACCORD HONDA'S BIGGEST SELLER IN THE US AND A MODEL THAT THE COMPANY TOUTED AS THE FIRST EXAMPLE OF A NEW LEANER METHOD OF DEVELOPING ITS CARS HONDA SOLD 22384 ACCORDS IN JANUARY UP A SHARP 53 OVER THE SAME MONTH A YEAR AGO THAT HELPED BOOST HONDA'S OVERALL SALES BY 14 THAT MONTH BUT ANALYSTS NOTE THAT THE ACCORD INCREASE WAS SO REMARKABLE LARGELY BECAUSE THE YEAREARLIER SALES WERE ARTIFICIALLY SUPPRESSED BY SPECIAL FACTORS WHAT'S MORE THIS JANUARY'S SALES FELL FAR SHORT OF THE AVERAGE OF ABOUT 31000 A MONTH NEEDED TO MEET HONDA'S STATED GOAL OF SELLING 375000 ACCORDS IN THE US THIS YEAR THE ACCORD FACES STIFF COMPETITION FROM MODELS LIKE CHRYSLER CORP'S LH SEDANS SALES OF OTHER CARS IN HONDA'S US LINEUP ARE FALLING HONDA SOLD JUST 1229 OF ITS REDESIGNED PRELUDE SPORTS CAR IN JANUARY DOWN 51 FROM A YEAR EARLIER CIVIC SALES MEANWHILE SLIPPED 42 TO 17080 CARS THINGS LOOK EVEN GRIMMER IN JAPAN HONDA'S SECONDBIGGEST MARKET WHERE MOST CAR MAKERS HAVE BEEN BATTERED BY THE NATION'S LONG ECONOMIC SLUMP JONATHAN DOBSON AN ANALYST AT JARDINE FLEMING SECURITIES EXPECTS HONDA'S CAR SALES IN JAPAN TO FALL 10 IN THE YEAR ENDING MARCH 31 ANALYSTS EXPECT JAPANESE VEHICLE SALES TO RECOVER LATER THIS YEAR BUT NOT MUCH ADDING TO HONDA'S WOES IS THE MIGHTY YEN WHICH RECENTLY SOARED TO NEARRECORD HIGHS AGAINST THE DOLLAR BECAUSE OF WORSENING TRADE TENSIONS WITH THE US THE CURRENCY CRISIS ERODES THE YEN VALUE OF THE PROFITS HONDA EARNS ON CARS SOLD IN THE US AND OTHER FOREIGN COUNTRIES TO BOLSTER ITS YENBASED REVENUE HONDA THEN HAS TO RAISE PRICES IN OTHER CURRENCIES WHICH HURTS ITS PRICECOMPETITIVENESS OVERSEAS HONDA'S PROBLEMS IN THE US AND JAPAN ARE DOUBLY TROUBLING BECAUSE ROUGHLY 80 OF ITS TOTAL AUTO SALES ARE CONCENTRATED IN THOSE TWO MARKETS THOSE DIFFICULTIES UNDERSCORE THE IMPORTANCE OF HONDA'S BID TO INCREASE SALES IN EUROPE A STRATEGY THAT HAS BEEN DISRUPTED THOUGH NOT DERAILED BY BMW'S ACQUISITION OF ROVER A HONDA SPOKESMAN NOTED THAT INDIVIDUAL CONTRACTS BETWEEN HONDA AND ROVER FOR SUPPLYING PARTS AND TECHNOLOGY WILL COME UP FOR REVIEW WHEN CAR MODELS REACH THE END OF THEIR LIFECYCLES TO BE SURE HONDA IS WEATHERING JAPAN'S RECESSION MUCH BETTER THAN JAPANESE RIVALS NISSAN MOTOR CO AND MAZDA MOTOR CORP BOTH OF WHICH HAVE DIPPED INTO THE RED WHAT'S MORE THE COMPANY'S OVERALL SALES ARE BEING BUTTRESSED BY STRONG DEMAND FOR ITS MOTORCYCLES THANKS TO A BOOMING MARKET FOR TWOWHEEL VEHICLES IN CHINA AND SOUTHEAST ASIA MOTORCYCLES WILL PROBABLY ACCOUNT FOR MORE OF HONDA'S PRETAX PROFIT THAN ITS CAR BUSINESS DURING THE YEAR ENDING MARCH 31 SAID JARDINE'S MR DOBSON 9402220048 940222 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES NHL'S STARS OF THE RINK MAY BE LORDS OF THE RINGS BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER THE MOST IMPORTANT MAN IN OLYMPIC ICE HOCKEY ISN'T IN LILLEHAMMER BUT IN NEW YORK HE'S GARY BETTMAN COMMISSIONER OF THE NATIONAL HOCKEY LEAGUE AND WHAT HE AND HIS NHL OWNEREMPLOYERS DECIDE OVER THE NEXT YEAR OR SO WILL DETERMINE WHETHER THE SPORT IN FUTURE GAMES WILL BE REPRESENTED BY ITS BEST OR AS AT PRESENT THE REST MR BETTMAN WAS HERE FOR A FEW DAYS LAST WEEK TO DISCUSS THAT SUBJECT WITH OLYMPIC HONCHOS HE JETTED HOME SATURDAY ENCOURAGED THAT HIS LEAGUE'S STARS COULD WEAR THEIR NATIONAL COLORS COME 1998 IN NAGANO JAPAN WE'VE BEGUN A DIALOGUE SAID HE I THINK WE'RE ON THE RIGHT TRACK MR BETTMAN KNOWS FROM OLYMPIC TRACKS BECAUSE AS A FORMER AIDE TO NATIONAL BASKETBALL ASSOCIATION COMMISSIONER DAVID STERN HE WAS IN ON THE PLANS TO LOOSE THE US DREAM TEAM UPON THE WORLD VIA THE BARCELONA SUMMER OLYMPICS THE TSHIRT SALES THAT MOVE GENERATED HAVEN'T STOPPED YET THE DREAM IN HOCKEY WOULD BE BROADER ENCOMPASSING ALL THE GLOBE'S REDCHEEKED LANDS THAT'S BECAUSE WITH A PLAYER POOL THAT'S ROUGHLY 60 CANADIAN 20 AMERICAN AND 20 EUROPEAN THE NHL IS HOCKEY'S INTERNATIONAL BIG LEAGUE AND ITS ENLISTEES COULD HELP STOCK A HALFDOZEN NATIONAL UNITS WE ARE TALKIN' JEREMY ROENICK SERGEI FEDEROV AND TEEMU SELANNE IN THE GAMES MAYBE EVEN WAYNE GRETZKY IF HIS LEGS HOLD OUT THE DEVELOPMENT WOULDN'T BE UNIVERSALLY CHEERED I THINK THAT SOMETHING'S LOST IF OLYMPIC PARTICIPATION BECOMES AN AFTERTHOUGHT FOR PROFESSIONALS SAYS TIM TAYLOR THE US COACH DEFENSEMAN PETER LAVIOLETTE A LONGTIME MINOR LEAGUER WHO AT AGE 29 IS THE US TEAM'S SKATING GRAYBEARD AGREES IT WOULD TAKE AWAY A KID'S CHANCE TO BE AN OLYMPIAN UNLESS HE'S AN NHL ALLSTAR FIRST I'D RATHER WAIT 20 MORE YEARS FOR ANOTHER MIRACLE ON ICE' THE STUNNING TRIUMPH OF AN UNHERALDED AMERICAN TEAM OVER THE FAVORED SOVIETS IN THE 1980 GAMES BUT SUCH REASONING DOES NOT OBTAIN IN OTHER OLYMPIC SPORTS NOR SHOULD IT I THINK AND ITS DAYS APPEAR TO BE ENDING IN HOCKEY THERE COULD BE A SLIP TWIXT PUCK AND TIPOFF AND MAYBE SEVERAL ONE LARGE POTENTIAL HANGUP IS SCHEDULING UNLIKE THE NBASUMMER GAMES TIE THE WINTER OLYMPICS HIT THE NHL IN MIDSEASON MEANING THAT LEAGUE PARTICIPATION WOULD REQUIRE IT TO SUSPEND ITS REGULAR SCHEDULE MR BETTMAN SAYS THAT A 16DAY HALT THE LENGTH OF THE CURRENT OLYMPIC TOURNAMENT IS OUT OF THE QUESTION AND THAT NHL OWNERS PROBABLY WOULDN'T OK EVEN A 12 OR 13DAY BREAK THAT'D RAISE THE POSSIBILITY OF A TWOTIER TOURNEY WITH HOCKEY NONPOWERS SUCH AS FRANCE ITALY AND NORWAY HAVING IT OUT FIRST FOR A BERTH OR TWO IN A WEEKLONG CHAMPIONSHIP ROUND INVOLVING THE SPORT'S BIG BOYS ANOTHER SNAG COULD BE THE STYLE OF PLAY ALLOWED SHOULD THE NHL STEP INTO THE FIVERINGED RINK THE LEAGUE HAS LONG TAKEN A BOYSWILLBEBOYS LET'SGIVETHEFANSWHAT THEYWANT POSITION ON ROUGH STUFF WHILE THE STANCE OF THE OLYMPICS IS THAT BOXING AND WRESTLING BELONG IN THE SUMMER GAMES MR BETTMAN CONTENDS THAT HIS LEAGUE'S PUNCHY STYLE IS THAT OF THE WORLD'S BEST PLAYERS INDICATING THAT NEGOTIATIONS WILL BE NEEDED ON THIS MATTER MEANTIME A HOCKEY TOURNAMENT IS GOING ON HERE AND IT'S MAKING UP IN COMPETITIVENESS WHAT IT LACKS IN QUALITY THERE HAVE BEEN TWO MAJOR SURPRISES ONE POSITIVE AND ONE NEGATIVE THE PLUS ONE IS THE PERFORMANCE OF THE FINNISH TEAM THE ONLY ONE TO COMPLETE ITS FIRSTROUND SCHEDULE UNBEATEN THE DOWNER IS THE SHOWING OF THE RUSSIANS WHO'VE BEEN RELEGATED TO THE PACK AFTER LEADING IT SINCE AS THE USSR THEY FIRST CAME TO PLAY IN 1956 TO WATCH THE FINNS IS TO WATCH FINE HOCKEY AT ANY LEVEL THE GUYS FROM OLD SUOMI VETERANS MOST HAVE BEEN ALL BUT IMPENETRABLE DEFENSIVELY SURRENDERING JUST FOUR GOALS AND BUT 62 SHOTS IN FIVE GAMES THE FINNS DEFEATED THE RUSSIANS 50 LAST WEEK AND ON SUNDAY WHACKED THE GERMANS WHO HAD PREVIOUSLY BEATEN THE RUSSIANS 71 WE CAN'T PLAY BETTER THAN WE DID THE FIRST TWO PERIODS TONIGHT WHEN THEY LED GERMANY 50 WHILE ALLOWING ONLY EIGHT SHOTS THE FINNISH COACH CURT LINDSTROM SAID LATER HIS FOES BETTER HOPE SO THE RUSSIANS WERE FAVORED BY MANY COMING IN BUT IT SEEMS SOLELY ON THE HISTORICAL GROUND OF THEIR EIGHT FIRSTS IN THE PAST 10 GAMES WITH 19 OF THE 22 PLAYERS FROM THE 1992 GOLDMEDAL UNIFIED TEAM WOOED TO THE NHL THIS GANG IS YOUNG RAW AND LOOSE ON DEFENSE RUSSIA'S IN THE PLAYOFFS BUT IT'S PROBABLY TOO LATE FOR VIKTOR TIKHONOV ITS COACH FROM BETTER DAYS TO FIRM THINGS UP BEHIND THE FINNS ARE THREE TEAMS THAT PLAYED ON ABOUT EVEN TERMS IN THE OTHER BRACKET CANADA WHICH YESTERDAY BEAT HIGHLY RATED SWEDEN 32 HAS A LOT OF FLASH ESPECIALLY IN PAUL KARIYA AND PETER NEDVED BUT A PENCHANT FOR PENALTIES METHODICAL SWEDEN HAS PETER FORSBERG AN EXCELLENT YOUNG STICKHANDLER AND GOOD BALLAST IN HAKAN LOOB AND MATS NASLUND SLOVAKIA HAS EXNHL GREAT PETER STASTNY AND A PATRIOTIC PUSH FROM NEW NATIONHOOD THE US IS STILL IN THE FRAY BUT JUST BARELY THREE COMEFROMBEHIND TIES AND A LOSS TO SWEDEN IN ITS FIRST FOUR GAMES LEFT IT NEEDING A 71 WIN OVER ITALY YESTERDAY TO ADVANCE AS ADVERTISED THE YOUNG YANKS AVERAGE AGE 22 ARE SPEEDY BUT LACK SIZE AND HAVE THE UNFORTUNATE HABIT OF GIVING UP THE PUCK IN THEIR OWN END WE MADE A BIG STEP AS A TEAM IN WINNING SAID MR TAYLOR AFTER THE TRIUMPH AGAINST FINLAND IN THE FIRST PLAYOFF ROUND TOMORROW IT'LL NEED A GIANT LEAP 9402220045 940222 CREDIT RATINGS MOODY'S CONFIRMS ITS RATINGS FOR DEBT OF DAYTON HUDSON NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT CONFIRMED THE RATINGS ON ABOUT 5 BILLION OF DAYTON HUDSON CORP'S LONGTERM DEBT CITING THE COMPANY'S STEPS TO IMPROVE ITS TROUBLED MERVYN'S UNIT IN OCTOBER THE RATINGS AGENCY PUT THE DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE BECAUSE OF CONTINUED DISAPPOINTING SALES AT MERVYN'S DESPITE MANAGEMENT'S EFFORTS TO BOLSTER ITS PERFORMANCE MOODY'S ALSO EXPRESSED CONCERN ABOUT WEAK CONSUMER SPENDING IN CALIFORNIA WHERE MANY OF DAYTON HUDSON'S MERVYN'S AND TARGET STORES ARE LOCATED ALTHOUGH MOODY'S SAID IT EXPECTS THE WEAK CALIFORNIA ECONOMY TO CONTINUE TO CHALLENGE GROWTH AT BOTH CHAINS IT NOW BELIEVES THE ECONOMY THERE WILL STABILIZE OVER THE NEAR TERM AND THESE BUSINESSES SHOULD BENEFIT FROM AN EVENTUAL ECONOMIC RECOVERY MOODY'S ALSO EXPRESSED MORE CONFIDENCE IN DAYTON HUDSON'S TURNAROUND EFFORTS AT MERVYN'S THROUGH A MORE CAREFUL FOCUS ON CUSTOMER NEEDS MOODY'S SAID MANAGEMENT HAS BEGUN TO EDIT THE MERCHANDISE SELECTION TO ENSURE A MORE CONSISTENT OFFERING OF FASHIONABLE MERCHANDISE REFINE ADVERTISING AND BOOST CUSTOMER SERVICE THESE EFFORTS SHOULD RESULT IN IMPROVED RESULTS THE RATINGS SERVICE SAID DAYTON HUDSON BASED IN MINNEAPOLIS ALSO HAS SIGNIFICANT ADVANTAGES THAT WILL HELP IT MANAGE THROUGH THIS PERIOD OF UNDERPERFORMANCE INCLUDING ITS OWNED LOCATIONS CONSERVATIVE FINANCING POLICIES AND RELATIVELY SHORT LEAD TIMES FOR CAPITALEXPENDITURE COMMITMENTS MOODY'S SAID DAYTON HUDSON'S SENIOR UNSECURED DEBT IS RATED SINGLEA3 THE PRIME2 RATING ON ITS COMMERCIAL PAPER WASN'T AFFECTED 9402220044 940222 CHRYSLER AIDES TO GET BONUSES EQUAL TO SALARIES PAYOUTS REWARD ATTAINMENT OF TARGETS FOR QUALITY PROFIT BUYERS' FEELINGS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP GAVE ITS TOP 200 EXECUTIVES 1993 BONUSES THAT AMOUNT TO ABOUT 100 OF THEIR ANNUAL SALARY AS A REWARD FOR MEETING PROFITABILITY QUALITY AND CUSTOMER SATISFACTION TARGETS THE BONUSES ARE THE HIGHEST THE AUTO MAKER HAS EVER PAID ACCORDING TO ONE SENIOR EXECUTIVE OFFICIALLY CHRYSLER WILL NOT DISCUSS ITS BONUS PLANS BUT A SPOKESMAN DID SAY THEY WERE GENEROUS ABOUT ANOTHER 100 EXECUTIVES RECEIVED BONUSES IN THE 75 TO 85 RANGE WHILE LOWERLEVEL EMPLOYEES RECEIVED SUBSTANTIALLY LESS IN 1992 CHRYSLER'S FIVE HIGHESTPAID EXECUTIVES RECEIVED BONUSES THAT RANGED FROM 96 TO 68 OF THEIR ANNUAL SALARIES ALTHOUGH 100 BONUSES ARE HIGH FOR MANY MANUFACTURING ENTERPRISES THEY AREN'T UNUSUAL IN DETROIT WHERE THE HIGHLY CYCLICAL AUTO BUSINESS OFTEN RESULTS IN YEARS WITHOUT ANY BONUSES AT ALL THERE'S BEEN ENOUGH YEARS WHERE THERE'S NO PAYOUTS SAID DAVID SWINFORD MANAGING DIRECTOR OF WILLAM M MERCER INC A FIRM THAT CONSULTS ON COMPENSATION MATTERS THAT THERE IS A LOT OF PRESSURE TO PROVIDE VERY SUBSTANTIAL BONUSES WHEN TIMES ARE GOOD INDEED GENERAL MOTORS CORP HASN'T PAID ANY BONUSES SINCE 1990 AND ISN'T PAYING ANY THIS YEAR EITHER FORD MOTOR CO IS EXPECTED TO PAY EXECUTIVE BONUSES THIS YEAR BUT IT IS LIKELY THEY WILL BE SMALLER THAN THOSE PAID AT CHRYSLER BOTH FORD AND CHRYSLER ALSO PAY BONUSES TO HOURLY WORKERS AS PART OF A PROFITSHARING AGREEMENT WITH THE UNITED AUTO WORKERS UNION CHRYSLER PAID AN AVERAGE OF 4300 TO EACH WORKER FORD WILL PAY AN AVERAGE OF 1350 IN MARCH GM'S NORTH AMERICAN LOSSES RULED OUT SIMILAR PAYMENTS THE BONUSES AT CHRYSLER COME AFTER ONE OF THE COMPANY'S BEST YEARS EVER EXCLUDING A SPECIAL 47 BILLION CHARGE TO ACCOUNT FOR FUTURE RETIREE HEALTH BENEFITS ON A PRETAX OPERATING BASIS THE COMPANY EARNED A RECORD 38 BILLION FOR THE YEAR SUBSTANTIALLY MORE THAN THE GOAL ESTABLISHED BY THE BOARD WHEN IT SET ASIDE A POOL OF FUNDS FOR 1993 BONUSES UNDER THE TERMS OF CHRYSLER'S BONUS PLANS EXECUTIVES ARE REWARDED BASED ON WHETHER THE CORPORATION MEETS TARGETS FOR PROFITABILITY IMPROVED VEHICLE QUALITY AND CUSTOMER SATISFACTION AS MEASURED BY SURVEYS AND WARRANTY CLAIMS IF ONLY SOME OF THE GOALS ARE MET THE BONUS POOL IS REDUCED PROPORTIONATELY IF THE GOALS ARE EXCEEDED THE POOL EXPANDS TO A MAXIMUM OF 125 OF ITS ORIGINAL SIZE AND FOR THE FIRST TIME A SENIOR EXECUTIVE SAID THE CHRYSLER POOL REACHED THE 125 LEVEL ONE REASON FOR THE BIG BONUSES WAS THAT DESPITE A RECENT SPATE OF RECALLS CHRYSLER EXCEEDED ITS OWN VEHICLE QUALITY GOALS AND REDUCED ITS WARRANTY CLAIMS A SENIOR EXECUTIVE SAID ACCORDING TO AN ANALYSIS BY GEORGE HOFFER A PROFESSOR OF BUSINESS AT VIRGINIA COMMONWEALTH UNIVERSITY FORD AND GM RECALLED ABOUT TWICE AS MANY VEHICLES AS CHRYSLER DID AS A PROPORTION OF VEHICLES SOLD IN THE FIRST 10 MONTHS OF 1993 THE MOST RECENT DATA AVAILABLE THOMAS W SIDLIK CHRYSLER'S VICE PRESIDENT FOR QUALITY SAYS INTERNAL AUDITS SHOW THAT THE AUTO MAKER MADE SUBSTANTIAL IMPROVEMENT THROUGHOUT THE YEAR IN ITS EFFORTS TO REDUCE ITS DEFECT RATES SEPARATELY CHRYSLER SAYS ITS CUSTOMER SATISFACTION SURVEYS SHOW THAT BUYERS ARE EXCEPTIONALLY PLEASED WITH SUCH STYLISH NEW VEHICLES AS THE DODGE RAM AND THE DODGE INTREPID WHAT'S MORE AS THE ONLY AUTO MAKER THAT DOESN'T HAVE SIGNIFICANT EXPOSURE TO DEPRESSED MARKETS IN JAPAN AND EUROPE CHRYSLER IS THE MOST PROFITABLE AUTO MAKER IN THE WORLD ON A PERVEHICLE BASIS ANALYSTS SAY 9402220043 940222 BUSINESS BRIEF ZONIC CORP SERIOUS CASH FLOW PROBLEMS' ARE CONTINUING THIS QUARTER ZONIC CORP CINCINNATI SAID IT IS CONTINUING TO EXPERIENCE SERIOUS CASH FLOW PROBLEMS AND IS NEGOTIATING WITH ITS LENDERS FOR AN EXTENSION OF ITS DEBT OBLIGATIONS IT SAID IT HAS RETAINED A NEW YORK INVESTMENT BANKING FIRM TO ASSIST IT IT SAID THAT IT EXPECTS CONTINUED LOSSES IN ITS FOURTH QUARTER ENDING MARCH 31 BUT THAT IT IS HOPEFUL OF A RETURN TO PROFITABILITY IN FISCAL 1995 STARTING APRIL 1 FOR THE THREE MONTHS ENDED DEC 31 ZONIC REPORTED A LOSS OF 23 MILLION OR 73 CENTS A SHARE ON SALES OF 1 MILLION THAT COMPARED WITH A LOSS OF 364259 OR 12 CENTS A SHARE ON SALES OF 14 MILLION IN THE YEAREARLIER FISCAL THIRD QUARTER THE SOFTWARE AND TEST EQUIPMENT COMPANY ATTRIBUTED THE LOSSES PRIMARILY TO SUBSTANTIAL SOFTWARE AND INVENTORY WRITEDOWNS AND INCREASED RESERVES FOR BAD DEBTS AS WELL AS A DECLINE IN SALES ZONIC REPORTED A LOSS OF 683572 OR 22 CENTS A SHARE ON REVENUE OF 17 MILLION FOR THE YEARAGO QUARTER 9402220042 940222 INTERNATIONAL BRIEF METALLGESELLSCHAFT AG SHARES PLUNGE 105 ON EVE OF GLOOMY EARNINGS REPORT METALLGESELLSCHAFT AG'S SHARES PLUNGED 105 IN A SELLOFF REFLECTING GENERAL PESSIMISM OVER THE COMPANY'S PROSPECTS BEFORE THE GROUP'S EARNINGS REPORT TODAY AND A SHAREHOLDERS' MEETING THURSDAY THE MARKET IS WAITING EAGERLY BUT THE EARNINGS WILL NOT BE A MAJOR EVENT SAID STEFAN ERMISCH AN INSTITUTIONAL TRADER FOR MERCK FINCK & CO IN DUESSELDORF GERMANY HE ADDED THAT TRADERS EXPECT THE COMPANY TO CONFIRM DIRE PREDICTIONS FOR THE CURRENT YEAR SOME REPORTS HAVE SUGGESTED THE FISCAL 1994 LOSS COULD MATCH LAST YEAR'S LOSS OF 18 BILLION MARKS 1 BILLION THE GERMAN COMPANY'S SHARES FELL ON THE FRANKFURT STOCK EXCHANGE TO 17550 MARKS FROM 196 MARKS ADDING TO THE COMPANY'S DIFFICULTIES THE GERMAN SHAREHOLDERPROTECTION GROUP DSW SAID IT WOULD BROADEN ITS REQUEST FOR A SPECIAL INQUIRY TO INCLUDE METALLGESELLSCHAFT'S SUPERVISORY BOARD 9402220041 940222 WHAT'S NEWS WORLDWIDE DIPLOMATS PRESSED FOR A SETTLEMENT IN BOSNIA AFTER A SERB PULLOUT IN SARAJEVO SERBS WITHDREW OR GAVE UP NEARLY ALL OF THEIR BIG GUNS NEAR THE BOSNIAN CAPITAL ENDING THE IMMEDIATE THREAT OF NATO AIR STRIKES WESTERN NATIONS SHIFTED THEIR FOCUS TOWARD DIPLOMACY HOPING THAT A MIXTURE OF NEW PROPOSALS COMBINED WITH THREATS WILL RESTRAIN THE SERBS THE US ALSO IS EXPECTED TO PRESSURE THE MUSLIM SIDE TO COME UP WITH A BOTTOMLINE PEACE PROPOSAL WASHINGTON OFFICIALS MEANWHILE EXPRESSED DOUBTS ABOUT EXTENDING NATO'S ULTIMATUM TO OTHER TOWNS CITING INSUFFICIENT UN GROUND FORCES FRENCH PRESIDENT MITTERRAND CALLED FOR SARAJEVO TO BE PLACED UNDER UN CONTROL BUT US AND MUSLIM OFFICIALS BELIEVE THE IDEA COULD ROB MOMENTUM FROM THE BROADER PEACE EFFORT AND LEAD TO AN ETHNIC PARTITION THE JUSTICE DEPARTMENT PLANS TO ANNOUNCE CRIMINAL CHARGES TODAY AGAINST NASA CONTRACTORS IN CONNECTION WITH THE UNDERCOVER INVESTIGATION OPERATION LIGHTNING STRIKE THE INVESTIGATION WHICH BEGAN IN THE SPRING OF 1992 HAS CENTERED ON ALLEGATIONS OF KICKBACKS AND OVERBILLING IN THE US SPACE PROGRAM NUCLEAR INSPECTORS MUST BEGIN WORK AT NORTH KOREA'S SEVEN DECLARED NUCLEAR SITES BEFORE WASHINGTON WILL SET A DATE FOR RESUMING HIGHLEVEL TALKS WITH PYONGYANG THE STATE DEPARTMENT SAID THE IAEA TOLD NORTH KOREA LAST WEEK THAT THE AGENCY'S INSPECTORS WOULD START WORK AS SOON AS VISAS WERE READY BUT THE VISAS HAVEN'T BEEN ISSUED LABOR UNIONS ARE DEBATING HOW FAST TO SPEND FUNDS THAT HAVE BEEN SET ASIDE TO PUSH FOR HEALTHCARE REFORM AND HOW TOUGH TO MAKE THE CAMPAIGN SOME UNIONS ARE PRESSING AFLCIO PRESIDENT KIRKLAND TO RELEASE MORE OF THE FUNDS EARMARKED FOR ADVERTISING THE DRUG AZT CAN BE USED TO SIGNIFICANTLY REDUCE TRANSMISSION FROM MOTHER TO CHILD OF THE VIRUS THAT CAUSES AIDS ACCORDING TO A STUDY SPONSORED BY NIH THE STUDY FOUND THAT INFANTS BORN TO WOMEN INFECTED WITH HIV WERE ONETHIRD AS LIKELY TO CONTRACT THE VIRUS IF THEY AND THEIR MOTHERS RECEIVED AZT FACETOFACE NEGOTIATIONS BEGAN BETWEEN THE MEXICAN GOVERNMENT AND REBELS BUT THE TALKS INITIALLY DEALT WITH PROCEDURAL ISSUES AND ARE EXPECTED TO DRAG ON FOR SOME TIME THE START OF THE TALKS WAS TENSE BECAUSE THE GUERRILLAS HAVE BROADENED THEIR DEMANDS FOR REFORM SAYING THEY MIGHT NOT DISARM EVEN IF PEACE IS ACHIEVED AN AUTHOR MAY PROCEED WITH A SUIT ALLEGING THAT A HARSH BOOK REVIEW PUBLISHED BY THE NEW YORK TIMES RUINED HIS CAREER A FEDERAL APPEALS COURT SAID THE RULING IN THE LIBEL CASE WAS A PROCEDURAL VICTORY FOR THE INVESTIGATIVE JOURNALIST DAN MOLDEA THAT MAY ENCOURAGE OTHER AUTHORS TO SUE OVER NEGATIVE REVIEWS CONSERVATIVE BLACKS AND WHITES SPURNED THE AFRICAN NATIONAL CONGRESS'S LATEST PROPOSAL AIMED AT GETTING THEM TO DROP A BOYCOTT THAT THREATENS TO DISRUPT APRIL'S ELECTIONS THE REJECTION BY THE FREEDOM ALLIANCE CAME AFTER AT LEAST 40 PEOPLE WERE REPORTED SLAIN IN WEEKEND POLITICAL VIOLENCE FCC RULES ON INDECENT BROADCASTS FACE FURTHER SCRUTINY IN COURT THE FULL FEDERAL APPEALS COURT IN WASHINGTON IS PLANNING TO RECONSIDER TWO DECISIONS THAT STRUCK DOWN THE FEDERAL RESTRICTIONS ON INDECENT BROADCASTS AND CABLETELEVISION PROGRAMMING THE CLINTON ADMINISTRATION SCALED BACK ITS PROPOSED INCREASE IN GRAZING FEES IN RESPONSE TO PRESSURE FROM WESTERN POLITICIANS AND RANCHERS A REGULATION BEING PREPARED BY THE INTERIOR DEPARTMENT WOULD RECOMMEND AN INCREASE SUBSTANTIALLY LESS THAN WHAT WAS PROPOSED LAST AUGUST PAKISTANI COMMANDOS STORMED THE AFGHAN EMBASSY IN ISLAMABAD FREEING FIVE SCHOOLBOYS AND A TEACHER AND KILLING THREE AFGHAN GUNMEN WHO HAD HELD THEM HOSTAGE FOR 40 HOURS IN A DEMAND FOR MONEY AND FOOD THE GUNMEN EARLIER HAD RELEASED MOST OF THE 73 CHILDREN AND TEACHERS SEIZED WHEN THEY HIJACKED A SCHOOL BUS SUNDAY COLOMBIA'S MARXIST REBELS STEPPED UP THEIR ATTACKS IN ADVANCE OF NEXT MONTH'S CONGRESSIONAL VOTE KIDNAPPING CANDIDATES SETTING UP ROADBLOCKS AND BLOWING UP POLICE POSTS AND POLITICIANS' OFFICES OVER THE WEEKEND DEFENSE OFFICIALS SAID 13 PEOPLE DIED IN THE CLASHES 9402220040 940222 MACY IS IN TALKS WITH FIDELITY AND UNIT OF GE NEGOTIATIONS INVOLVE PLAN FOR RETAILER TO EXIT CHAPTER 11 IN MONTHS BY LAURA JERESKI AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO IS IN NEGOTIATIONS WITH GENERAL ELECTRIC CAPITAL AND FIDELITY INVESTMENTS TO PUT TOGETHER A PLAN THAT WOULD ALLOW THE RETAILER MIRED IN BANKRUPTCYCOURT PROCEEDINGS FOR TWO YEARS TO EMERGE WITHIN THE NEXT FEW MONTHS ACCORDING TO A PERSON FAMILIAR WITH THE TALKS THE PLAN WOULD VALUE THE NEW YORKBASED RETAILER AT ABOUT 32 BILLION FAR LESS THAN THE 35 BILLION THE COMPANY AND SOME CREDITORS HAVE HOPED FOR IT ALSO WOULD LEAVE FIDELITY OWNING AS MUCH AS 40 OF THE REORGANIZED COMPANY'S STOCK THE TALKS ARE STILL IN PRELIMINARY STAGES AND A PLAN ISN'T EXPECTED TO BE FILED IN FEDERAL BANKRUPTCY COURT IN THE SOUTHERN DISTRICT OF NEW YORK FOR SEVERAL WEEKS BUT ACCORDING TO THE PERSON FAMILIAR WITH THE SITUATION THE PARTIES HAVE ALREADY OUTLINED SOME OF THE CRITICAL TERMS KEY TO THE SUCCESS OF THE PLAN IS REPAYING IN FULL THE CLAIM SHARED BY PRUDENTIAL INSURANCE CO OF AMERICA AND FEDERATED DEPARTMENT STORES WHICH HAS GROWN TO ABOUT 11 BILLION WITH INTEREST FEDERATED MACY'S RIVAL AND MOST SENIOR CREDITOR HAS SAID IT WANTS TO MERGE THE TWO DEPARTMENTSTORE CHAINS FEDERATED PAID 1093 MILLION TO CONTROL HALF OF THE PRUDENTIAL CLAIM IN ORDER TO GAIN A SEAT IN THE BANKRUPTCYCOURT NEGOTIATIONS MACY DECLINED TO COMMENT AND NONE OF THE OTHER PARTIES RETURNED CALLS REQUESTING COMMENT ABOUT THE TALKS THE PLAN CONTEMPLATES A MODEST EQUITY INFUSION OF 50 MILLION TO 100 MILLION BY GEC A UNIT OF STAMFORDBASED GENERAL ELECTRIC CO AND A SIMILAR AMOUNT FROM FIDELITY ACCORDING TO A PARTICIPANT IN THE TALKS GE'S TALKS WITH MACY ABOUT INVESTING IN ITS REORGANIZATION WERE PREVIOUSLY REPORTED THE MONEY WOULD HELP THE RETAILER AND ITS ALLIES BUY BACK THE STAKES OF OTHER MAJOR CREDITORS MANY OF THEM BANKS THAT ARE RELUCTANT TO HOLD STOCK ACCORDING TO THE PERSON FAMILIAR WITH THE TALKS FIDELITY WOULD BE MACY'S BIGGEST SHAREHOLDER WITH AS MUCH AS A 40 STAKE IN THE THE REORGANIZED COMPANY MACY WANTS TO STAY INDEPENDENT IN THE WORST WAY SAYS ONE SECURED CREDITOR CURRENTLY FIDELITY OWNS 490 MILLION OF MACY'S BANK DEBT ENOUGH TO BLOCK OR APPROVE ANY PLAN IF FIDELITY PICKS SIDES THAT WOULD BE A MAJOR PROBLEM FOR FEDERATED'S BID TO TAKE CONTROL OF THE COMPANY SAYS MAX HOLMES A HIGHYIELD BOND ANALYST AT SALOMON BROTHERS THE PROPOSAL REPRESENTS A STUNNING REVERSAL FOR MACY WHICH HAD STALLED LAST FALL IN NEGOTIATIONS WITH FIDELITY AND OTHER SENIOR CREDITORS WHO ARE OWED ABOUT 24 BILLION AND THE PLAN IF IT GAINS APPROVAL FROM THOSE FIRSTRANKED CREDITORS WILL SPELL TROUBLE FOR MACY BONDHOLDERS WHO HOLD 13 BILLION OF MACY SECURITIES THAT'S BECAUSE ACCORDING TO PEOPLE FAMILIAR WITH THE TERMS BEING DISCUSSED THE PLAN CONTEMPLATES A DISTRIBUTION OF LESS THAN 30 CENTS ON THE DOLLAR FOR THE BONDS DUE IN 1998 AND NOTHING FOR THE MORE JUNIOR BONDS THOSE SECURITIES HAVE SOARED IN VALUE SINCE FEDERATED BOUGHT ITS CLAIM AND ANNOUNCED ITS INTENTION TO MERGE WITH MACY IN JANUARY IN THE EXPECTATION OF A BIDDING WAR FOR THE RETAILER AT FRIDAY'S CLOSE THE BONDS DUE IN 1998 A 379 MILLION ISSUE WERE BID AT 45 THE JUNIOR BONDS DUE IN 2001 WERE BID 20 AND THE ZEROCOUPON BONDS DUE THE SAME YEAR WERE BID 7 1/4 FOR BONDHOLDERS THE BEST HOPE IS THAT FEDERATED WANTS TO OWN MACY BADLY ENOUGH TO COME UP WITH A RIVAL PLAN BUT FEDERATED COULD LOSE THE RIGHT TO VOTE ITS STAKE IF UNDER A REORGANIZATION PLAN IT WERE TO RECEIVE CASH OR A DEBT SECURITY EQUIVALENT TO ITS CURRENT CLAIM MACY MEANWHILE IS EXPECTED TO RECEIVE A FOURMONTH EXTENSION OF THE PERIOD IN WHICH IT HAS THE EXCLUSIVE RIGHT TO FILE A REORGANIZATION PLAN TODAY WHEN ITS REPRESENTATIVES APPEAR BEFORE FEDERAL BANKRUPTCY COURT JUDGE BURTON LIFLAND IN MANHATTAN THE EXCLUSIVITY PERIOD CURRENTLY EXPIRES MARCH 15 BUT MACY IS FACING VEHEMENT PROTESTS TO ITS EXTENSION REQUEST FROM STATES SEEKING PAYMENT OF BACK SALESTAX DOLLARS WHEN MACY FILED FOR CHAPTER 11 PROTECTION IN JANUARY 1992 THE SALES TAXES COLLECTED DURING THE PREVIOUS QUARTER WERE FROZEN MACY OWES ABOUT 111 MILLION TO THE 20 STATES IN WHICH IT OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES STATES TYPICALLY CLAMOR FOR TAX PAYMENTS IN RETAIL BANKRUPTCYLAW CASES BUT IN MACY'S PROCEEDINGS MANY HAVE TURNED PARTICULARLY VOCAL MARK BROWNING A TEXAS ASSISTANT ATTORNEY GENERAL SAID THAT STATE IS OWED 44 MILLION IN BACK TAXES ACCORDING TO AN AMENDED CLAIM FILED WITH THE COURT MACY SAID THE STATE'S PREBANKRUPTCY PETITION CLAIM WAS FOR ONLY 500000 MR BROWNING IS EXPECTED TO BE JOINED IN COURT TODAY BY REPRESENTATIVES OF OTHER STATES INCLUDING PENNSYLVANIA NEW YORK STATE WHICH SAYS IT IS OWED 55 MILLION IN TAXES JOINED THE TEXAS OBJECTION LAST WEEK AS DID GEORGIA LATE ON FRIDAY ACCORDING TO MR BROWNING THEIR PROTESTS AREN'T EXPECTED TO DERAIL MACY'S REQUEST FOR AN EXTENSION BANKRUPTCY JUDGES TYPICALLY DISCOUNT SUCH OBJECTIONS BECAUSE STATES ARE PRIORITY CREDITORS AND ASSURED FULL PAYMENT ONCE A PLAN IS CONFIRMED HOWEVER THEIR CLAIMS PRESENT YET ANOTHER IMPEDIMENT TO BONDHOLDERS WHOSE CLAIMS ARE UNSECURED AND THEREFORE PAID ONLY AFTER TAX CLAIMS AND SECURED CREDITORS HAVE BEEN SATISFIED 9402220039 940222 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ADDED NINE COMPANIES TO ITS LISTINGS LAST WEEK INCLUDING FOREST PRODUCTS COMPANY RAYONIER INC STAMFORD CONN UNDER RYN A SPINOFF FROM ITT CORP EIGHT INITIAL PUBLIC OFFERINGS INCLUDED HARVEYS CASINO RESORTS LAKE TAHOE NEV HVY A CASINO/HOTEL COMPANY MARTIN MARIETTA MATERIALS INC RALEIGH NC MLM A PRODUCER OF AGGREGATES FOR CONSTRUCTION AND THE FOLLOWING SIX NEW CLOSEDEND FUNDS GLOBAL PRIVATIZATION FUND INC NEW YORK GPF INDIA FUND INC NEW YORK IFN MORGAN STANLEY INDIA INVESTMENT FUND INC NEW YORK IIF NATIONS GOVERNMENT INCOME TERM TRUST 2004 INC CHARLOTTE NC NGF INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES NEW YORK ICS AND INTERCAPITAL INSURED MUNICIPAL SECURITIES NEW YORK IMS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING THREE INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM CAI WIRELESS SYSTEMS INC BALLSTON SPA NY UNDER CAWS A WIRELESS CABLE SYSTEM OPERATOR NEUROBIOLOGICAL TECHNOLOGIES INC RICHMOND CALIF NTII A BIOPHARMACEUTICAL COMPANY AND XPEDITE SYSTEMS INC EATONTOWN NJ XPED A PROVIDER OF FAX COMMUNICATIONS SERVICES THE NASDAQ MARKET ALSO BEGAN TRADING DELRINA CORP TORONTO CANADA DENAF A MAKER OF PERSONAL COMPUTER SOFTWARE THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS ON ZILOG INC AND VISX INC 9402220038 940222 INTERNATIONAL BRIEF SEGA ENTERPRISES LTD STOCK PRICE DECLINES 29 ON OUTLOOK FOR EARNINGS SHARES OF JAPANESE VIDEOGAME MAKER SEGA ENTERPRISES LTD SANK 29 ON FRIDAY FOLLOWING ITS ANNOUNCEMENT THAT IT EXPECTS EARNINGS TO PLUNGE IN THE CURRENT FISCAL YEAR SEGA OFFICIALS SAID CONSOLIDATED PRETAX PROFIT IS EXPECTED TO DROP 62 TO 22 BILLION YEN 212 MILLION FOR THE YEAR ENDING MARCH 31 FROM 5918 BILLION YEN THE YEAR EARLIER THE COMPANY ALSO ESTIMATES AN 8 DECLINE IN GROUP SALES TO 385 BILLION YEN FROM 41623 BILLION YEN IN TOKYO TRADING SEGA SHARES FRIDAY CLOSED AT 7280 YEN DOWN FROM 7500 YEN THE STOCK CONTINUED ITS DECLINE MONDAY BUT NOT AS SHARPLY AS IN THE PREVIOUS SESSION FALLING TO 7220 SEGA BLAMED THE REVISION ON ECONOMIC SLUGGISHNESS IN EUROPE AND ON THE STRONG YEN WHICH MAKES EXPORTS FROM JAPAN MORE EXPENSIVE OVERSEAS AND LOWERS THE YENDENOMINATED VALUE OF OVERSEAS SALES A COMPANY SPOKESMAN SAID SEGA EXPECTS A RECOVERY NEXT YEAR THANKS TO PLANS TO LAUNCH A LINE OF TOYS AIMED AT YOUNGER CHILDREN AND TO OPEN THE FIRST OF ITS VIRTUAL REALITYBASED THEME PARKS IN JAPAN 9402220037 940222 GREENSPAN MUST TIGHTEN ARGUMENTS BY JUDE WANNISKI AS THE DEBATE SWIRLS AROUND THE FED'S TIGHTENING CHAIRMAN ALAN GREENSPAN IS BRACING HIMSELF FOR HIS APPEARANCES THIS WEEK BEFORE THE HOUSE AND SENATE BANKING COMMITTEES WHY CHAIRMEN DONALD RIEGLE AND HENRY GONZALEZ NO DOUBT WILL ASK DID HE TIGHTEN AGAINST THEIR WISHES WITH NO SIGNS OF INFLATION ON THE HORIZON AND HOW DOES HE EXPLAIN THE FACT THAT THE FINANCIAL MARKETS GREETED THE MOVE WITH CLEAR CONTEMPT WHAT'S MR GREENSPAN GOING TO SAY THE MOST PROMINENT ARGUMENTS ON EITHER SIDE OF THE DEBATE OFFER HIM LITTLE ASSISTANCE BUT IT IS IMPORTANT THAT THEY BE UNDERSTOOD AND THAT MR GREENSPAN BE PREPARED TO HANDLE THEM FROM THE KEYNESIANS WE GOT THE NEW YORK TIMES ESSAY OF JAMES K GALBRAITH FEB 8 THE FED GOES FOR OVERKILL FROM THE MONETARISTS WE GOT THE FEB 9 ARTICLE BY ALLAN MELTZER ON THIS PAGE STILL TOO EASY FROM THE TECHNICIANS WE GOT RANDALL W FORSYTH'S FEB 14 REPORT IN BARRON'S TIGHTENING'S IMPACT WHAT HISTORY TEACHES MY POSITION WAS REPRESENTED IN ROBERT NOVAK'S FEB 10 COLUMN IN THE NEW YORK POST FED'S MISCUE WHICH CENTERS ON THE ARGUMENTS OF WAYNE ANGELL WHOSE EIGHT YEARS AS FED GOVERNOR ENDED THE PREVIOUS DAY THE ONLY OTHER REALLY IMPORTANT PIECE THAT HAS APPEARED IN PUBLIC PRINT WAS THE LETTER IN THE FEB 16 NEW YORK TIMES BY GEOFFREY MOORE OF COLUMBIA UNIVERSITY FORECAST WARNS OF INFLATION CLOUDS WHICH CHALLENGES THE GALBRAITH ARGUMENTS OF FEB 8 THE GALBRAITH ARGUMENT MAKES THE KEYNESIAN CASE POPULAR WITH SEN RIEGLE AND SEN PAUL SARBANES WHAT IS THE JUSTIFICATION FOR THE QUARTERPOINT RISE IN THE FED FUNDS RATE THERE IS NONE MR GREENSPAN WARNED FOR MONTHS ABOUT THE THREAT OF RISING INFLATION YET EACH MONTHLY PRICE INDEX REPORT UNDERCUT HIS PREDICTIONS SO NOW WE HAVE A PREEMPTIVE STRIKE THAT ISN'T NEEDED MR GALBRAITH CHASTISES PRESIDENT CLINTON FOR GOING ALONG WITH IT CONFRONTED WITH THIS BRAZEN ACT BY THE FED PRESIDENT CLINTON WOUNDS HIMSELF BY SEEMING TO WELCOME IT THE MELTZER PIECE APPEARING THE FOLLOWING DAY CONTRADICTS THE GALBRAITH ASSERTION THAT ALL AGREE THERE IS NO INFLATIONARY THREAT ON THE SURFACE IT SEEMS LIKE A DEFENSE OF MR GREENSPAN BUT PROF MELTZER BUILDS HIS ANALYSIS ON THE RAPID GROWTH OF THE MONETARY BASE AND THE FED GOVERNORS HAVE SPENT THE PAST THREE YEARS TRYING TO DRIVE A STAKE THROUGH THE HEART OF THESE MONETARY AGGREGATE RULES WHICH WERE AT THE HEART OF THE GREAT INFLATION OF THE PAST 20 YEARS AND DESTROYED BOTH THE NIXON AND CARTER PRESIDENCIES RANDY FORSYTH OF BARRON'S TAKES US THROUGH THE HISTORY OF THE PAST SEVERAL FED TIGHTENINGS GOING BACK TO 1958 IN SUPPORT OF HIS THESIS THAT THEY ARE ALWAYS BAD FOR BONDS INSOFAR AS MR GREENSPAN SEEMS TO HAVE THE GREEN LIGHT FROM THE WHITE HOUSE TO TIGHTEN BY AS MUCH AS 75 MORE BASIS POINTS DURING THE COURSE OF THE YEAR THIS WOULD SEEM TO BE VERY BAD NEWS FOR BONDS THE FORSYTH ARGUMENT THOUGH LACKS INTERNAL LOGIC AS IT SUGGESTS THE BOND MARKET WOULD RESPOND POSITIVELY TO A PERPETUAL EASING OF MONETARY POLICY BY THE FED SOMEWHERE ALONG THE LINE BONDS HAVE TO RESPOND NEGATIVELY TO EASE AND POSITIVELY TO TIGHTENING OR THE NATION'S CREDITORS HAVE TO BE A BUNCH OF SIMPLETONS HAPPY AS CLAMS HOLDING DEPRECIATING ASSETS IN AN IDEAL MONETARY WORLD ASSUMING THE NATION'S CREDITORS ARE IN AGGREGATE AS SHARP AS TACKS A FED TIGHTENING WOULD ALWAYS BE FOLLOWED IN THE FIRST INSTANCE BY A RISE IN BOND PRICES AND IF THE FED BELIEVED INCIPIENT DEFLATION WAS THE PROBLEM A FED EASE WOULD BE FOLLOWED IN THE FIRST INSTANCE WITH A RISE IN BOND PRICES FOR MOST OF THE HISTORY OF THE FEDERAL RESERVE GOING BACK TO 1913 THIS WAS INDEED THE CASE BUT THE EASINGS AND TIGHTENINGS WERE SO MICROSCOPIC IT WOULD TAKE BARRON'S A FEW YEARS OF DIGGING INTO THE RECORDS TO FIND THEM THIS IS BECAUSE THEY WERE AUTOMATICALLY ADJUSTING TO LIQUIDITY PREFERENCES ON A DAILY BASIS TO KEEP GOLD AT 2067 AN OUNCE UNTIL 1934 AND AT 35 AN OUNCE INTO THE LATE 1960S WHEN THE FED BEGAN CAVING IN TO POLITICAL PRESSURES TO DEVALUE THE CURRENCY TO INFLATE IN EACH INSTANCE THE INDEXES OF STATISTICAL INFLATION WERE PRECEDED BY A RISE IN THE GOLD PRICE OR A GOLD OUTFLOW TO EUROPE THIS THINKING WAS BEHIND THE NOVAK COLUMN ANGELL DID NOT PARTICIPATE IN THE FEB 4 DECISION HE WANTED RATES INCREASED TWICE AS MUCH AND MUCH EARLIER HIS REASON THE RISING PRICE OF GOLD SIGNALING INFLATION AHEAD THAT IS IF MR GREENSPAN HAD FOLLOWED THE ADVICE OF MR ANGELL LAST YEAR BEFORE GOLD ADVANCED BY 10 ABOVE THE 350 LEVEL IT WOULD HAVE TAKEN ONLY ONE SMALL TIGHTENING TO REIN IT IN NOW HE BELIEVES IF THE FED WERE TO TIGHTEN JUST ONCE CONFOUNDING THE FORSYTH ANALYSIS IT SHOULD HAVE BEEN A 50 BASIS POINT MOVE ACCOMPANIED BY AN EXPLANATION FROM MR GREENSPAN THAT HIS CONCERN IS GOLD'S INFLATIONARY SIGNAL THAT'S PRETTY MUCH MY VIEW BUT THAT'S HISTORY WHAT NOW WHICH BRINGS US TO THE LETTER FROM PROF MOORE WHO CITES A BASKET OF SIGNALS THAT HAVE EMERGED SINCE JAN 1 INDICATING INFLATION ON THE HORIZON LED BY COMMODITY PRICE INFLATION BUT ALSO INCLUDING A RISING PERCENTAGE OF PURCHASING MANAGERS REPORTING HIGHER PRICES MANAGERS REPORTING SLOWER DELIVERIES A RISING PERCENTAGE OF BUSINESSMEN EXPECTING HIGHER SALE PRICES IN THE LAST QUARTER THE RATIO OF EMPLOYMENT TO POPULATION HEADING UP AND LIKEWISE WITH IMPORT PRICES THERE ARE EARLY WARNING SIGNS OF A CYCLICAL UPSWING IN INFLATION HE SAYS THERE IS MORE PHILLIPS CURVE THINKING IN THIS ARGUMENT THAN I LIKE INFLATION IS NOT CAUSED BY TOO MANY PEOPLE WORKING AS MARGARET BUSH WILSON OF THE NAACP PUT IT A DOZEN YEARS AGO JUST AS MR GREENSPAN CANNOT LEAN ON MR MELTZER'S FALLACIOUS ARGUMENT FOR SUPPORT HE HAS TO FIND A WAY TO PLAY DOWN MR MOORE'S CYCLICAL ARGUMENTS WHICH MAY BE CORRECT IN A NARROW SENSE BUT ONLY GET THE BONDHOLDERS MIXED UP MR GREENSPAN TRIED IN HIS JOINT ECONOMIC COMMITTEE TESTIMONY OF JAN 31 TO EXPLAIN THAT HE WOULD NOT TIGHTEN TO SLOW ECONOMIC GROWTH ONLY TO ANTICIPATE INFLATION THAT'S NOT HOW THE TIGHTENING WAS REPORTED FOUR DAYS LATER THIS WEEK HE EITHER HAS TO DEVELOP HIS ARGUMENTS FURTHER OR BE COAXED INTO THAT PROCESS BY THE COMMITTEE MEMBERS THE NATION'S CREDITORS CANNOT AFFORD TO REWARD HIM WITH A BOND MARKET RALLY UNLESS HE GETS IT RIGHT MR WANNISKI IS PRESIDENT OF POLYCONOMICS INC A MORRISTOWN NJ CONSULTING GROUP 9402220036 940222 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEB 18 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER DADE COUNTY FLA WILL REDEEM ON APRIL 1 1994 ITS SEAPORT REVENUE BONDS SERIES 1978 DUE OCT 1 2000 CHEMICAL BANK NEW YORK IS PAYING AGENT POPE & TALBOT INC WILL REDEEM ON MARCH 4 1994 ITS 6 CONVERTIBLE SUBORDINATED DEBENTURES DUE MARCH 1 2012 CHEMICAL TRUST CO CALIF IS PAYING AGENT PUBLIC SERVICE ELECTRIC & GAS CO WILL REDEEM ON MARCH 1 1994 ITS FIRST AND REFUNDING MORTGAGE BONDS 4 5/8 SERIES DUE 1994 FIRST FIDELITY BANK PHILADELPHIA AND MORGAN GUARANTY TRUST CO NEW YORK ARE REDEEMING AGENTS RIGGS NATIONAL CORP WILL REDEEM ON MARCH 22 1994 ITS FLOATING RATE SUBORDINATED NOTES DUE 1996 BANKERS TRUST CO LONDON IS PAYING AGENT 9402220035 940222 OSHA SAYS ARCHERDANIELS VIOLATED RULES ON SAFETY PEORIA ILL THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION CITED TWO ARCHERDANIELSMIDLAND CO OPERATIONS FOR WORKPLACE SAFETY VIOLATIONS THE AGENCY CITED THE ADM TRUCK UNIT IN DECATUR ILL FOR FOUR WILLFUL VIOLATIONS SIX SERIOUS VIOLATIONS AND THREE LESSER ALLEGED SAFETYRULE BREACHES OSHA'S INSPECTION AT THE TRUCKING PLANT FOLLOWED A FATAL ACCIDENT IN WHICH A CONTRACT EMPLOYEE HIRED TO CLEAN AND INSPECT TANK TRAILERS WAS ASPHYXIATED INSIDE A TRAILER WHICH HADN'T BEEN PROPERLY VENTED PRIOR TO HIS ENTRY OSHA ALSO CITED THE COMPANY'S ADM WEST PLANT IN DECATUR FOR TWO WILLFUL AND TWO SERIOUS ALLEGED SAFETY VIOLATIONS FOLLOWING A NONFATAL ACCIDENT IN WHICH THREE CONTRACT WORKERS WERE FELLED BY LACK OF OXYGEN DURING THE CLEANING OF A SOYBEAN OIL TANK THE AGENCY PROPOSED 318000 IN PENALTIES ARCHERDANIELS AN AGRICULTURAL FOODINGREDIENT PROCESSOR HAS 15 DAYS TO CONTEST THE CITATIONS AND PROPOSED PENALTIES AN ARCHERDANIELS SPOKESMAN SAID THE COMPANY WILL CONTEST THE CITATIONS 9402220034 940222 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER A BUYERS' MARKET FADES AS DEMAND FOR WHITECOLLAR WORKERS PICKS UP NO LONGER ARE JOBSEARCHING EXECUTIVES JUMPING AT THE FIRST OFFER THAT COMES ALONG WITH THE LABOR MARKET IMPROVING EXECUTIVES AREN'T AS FLEXIBLE AS THEY WERE IN THE PAST THREE YEARS SAYS WILLIAM SHOCKEY OF THORNDIKE DELAND ASSOCIATES IN NEW YORK SEARCH FIRMS ARE NOTICING A GREATER RELUCTANCE TO RELOCATE AND CANDIDATES ARE SEEKING OUT COMPETITIVE OFFERS AFTER SEVERAL YEARS OF 5 SALARY INCREASES MANAGERS FEEL THEY ARE BEHIND AND WANT TO CATCH UP SAYS DWIGHT FOSTER HEAD OF NEW YORK SEARCH FIRM FOSTER PARTNERS INC THE STANDARD 25 PAY INCREASE FOR NEWLY ACQUIRED EXECUTIVES IS PRETTY MUCH OBSOLETE SAYS ROGER SEKERA VICE PRESIDENT OF AT KEARNEY EXECUTIVE SEARCH EXECUTIVES SAY YOU'VE GOT TO DOUBLE MY INCOME HE SAYS EXECUTIVES SEEM TO HAVE THE GREATEST PULL IN THE FIELDS OF MARKETING CHEMICALS ENGINEERING CONSTRUCTION AND INTERNATIONAL CONSUMER GOODS AS WELL AS THOSE WHO BRING DIVERSITY OF SEX AND RACE TRAINING TO MEET SKILL SHORTAGES MAY BE THE WRONG FOCUS FOR TOMORROW'S JOBS HIGHLY SKILLED JOBS ARE EXPECTED TO GROW AT A FASTER RATE BUT 21 OF THE 30 OCCUPATIONS THE LABOR DEPARTMENT EXPECTS TO GROW THE MOST NUMERICALLY BY 2005 REQUIRE LITTLE EDUCATION ROUGHLY 13 MILLION ADDITIONAL CASHIERS JANITORS GARDENERS AND OTHER LOWSKILLED WORKERS WILL BE NEEDED BY THEN THE DEPARTMENT ESTIMATES THESE JOBS TEND TO HAVE HIGH TURNOVER RATES MEANING FAR MORE THAN 13 MILLION PEOPLE WILL EVENTUALLY FILL THESE SPOTS THESE JOBS TAKE LOGICAL THINKING GOOD CONTROL AND JUDGMENT NONE OF WHICH ARE TRAINABLE SAYS LABOR ECONOMIST AUDREY FREEDMAN SHE SAYS FIGURING OUT HOW TO INSTILL CHARACTERISTICS THAT SHOULD BE LEARNED IN CHILDHOOD WILL BE DIFFICULT AND PROBABLY BE A BIG PROBLEM IN PRESIDENT CLINTON'S WELFARETOWORK PROGRAM THESE ABILITIES HAVE ALREADY BECOME MORE IMPORTANT AS MANY COMPANIES HAVE TRIMMED MANAGERIAL LAYERS GIVING MORE RESPONSIBILITY TO FRONTLINE WORKERS IT JUST TOOK TIME OLDER FOLKS ARE AS ADEPT ON COMPUTERS AS YOUNG HOT SHOTS FIVE YEARS AGO OLDER EMPLOYEES WERE STANDOFFISH ABOUT COMPUTER TECHNOLOGY SAYS ADRIANE CARR MANAGER OF EDUCATION AND DEVELOPMENT AT BELLSOUTH CORP BUT NOW SHE SAYS THEY'RE MORE ADAPTABLE AND ACTUALLY HAVE A BETTER KNACK FOR VISUALIZING PRACTICAL APPLICATIONS FOR WHAT THEY ARE LEARNING THAN THEIR YOUNGER COUNTERPARTS WHO HAVE LESS ONTHEJOB EXPERIENCE COMPANIES DO NOTE DIFFERENCES THOUGH IN THE WAY OLD AND YOUNG PEOPLE LEARN COMPUTER SKILLS OLDER PEOPLE LIKE TO LEARN THROUGH SEEING AND READING AND YOUNGER PEOPLE LEARN MORE ADROITLY BY LISTENING AND THEN TRYING IT SAYS CHRIS WICHERS VICE PRESIDENT OF FRONTOFFICE OPERATIONS FOR HILTON HOTELS CORP HILTON ALSO FINDS VIDEOS ARE PERFECT FOR THOSE WHO DIDN'T GET COMPUTER TRAINING IN SCHOOL BECAUSE EMPLOYEES CAN WATCH IN THE PRIVACY OF THEIR OWN HOMES WITHOUT FEELING THREATENED GOOD NEWS FOR PERMANENT JOB SEEKERS USE OF TEMPORARY WORKERS IS ON THE DECLINE TEMPORARY JOBS ARE EXPECTED TO REPRESENT 96 OF TOTAL EMPLOYMENT GROWTH THIS YEAR COMPARED WITH 14 IN 1993 AND 48 IN 1992 ACCORDING TO MARKETRESEARCH FIRM OMNICOMP GROUP ONE REASON IS THAT UNIONS SUCH AS AT&T'S CWA LOCAL 1058 ARE FORCING EMPLOYERS TO SET LIMITS ON TEMP USE THE US CONSTRUCTION INDUSTRY TRAILS MOST WESTERN COUNTRIES IN THE DEVELOPMENT OF NEW TECHNOLOGIES TO INCREASE SAFETY ON THE JOB AND THREE TO FOUR WORKERS DIE EACH DAY FROM INJURIES ACCORDING TO THE CENTER TO PROTECT WORKERS' RIGHTS THE CENTER CITES TWOHANDED SCREWDRIVERS AND DRYWALL IN SMALLER SIZES AS INNOVATIONS IN OTHER NATIONS THAT HAVE REDUCED INJURIES SIDE TRIP TEAMSTERS PRESIDENT RON CAREY INVITES OTHER UNION PRESIDENTS AND AFLCIO CHIEF LANE KIRKLAND TO TAKE A BREAK FROM THIS WEEK'S MEETING IN BAL HARBOUR FLA THE PLAN IS TO GET ARRESTED TOMORROW AFTERNOON FOR CIVIL DISOBEDIENCE AT AN ENTENMANN'S BAKERY PLANT IN MIAMI THE IDEA IS TO PUBLICIZE THE TEAMSTERS' BOYCOTT OF DIAMOND WALNUT AND LABOR'S PUSH FOR A LAW AGAINST PERMANENT REPLACEMENT OF STRIKERS AND BE BACK IN TIME FOR DINNER UNION OFFICIALS SAY BUREAUCRATS UNDERCUT REHIRING OF AIRTRAFFIC CONTROLLERS SOME 5000 FIRED CONTROLLERS WHO WERE INVOLVED IN AN ILLEGAL 1981 STRIKE APPLIED TO BE REHIRED FOLLOWING PRESIDENT CLINTON'S DECISION TO ALLOW THEM BACK BUT THE NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION SAYS THE FEDERAL AVIATION ADMINISTRATION PLANS TO HIRE JUST 50 OVER TWO YEARS STARTING NEXT YEAR THE PEOPLE WHO FIRED THE CONTROLLERS ARE STILL IN THE HIERARCHY OF FAA THEY DON'T WANT THEM BACK SAYS JOSEPH M BELLINO A UNION OFFICIAL BUT THE FAA SAYS THERE AREN'T ANY LIMITS ON THE FIRED CONTROLLERS AND THAT THEY CAN COMPETE WITH OTHER CANDIDATES FOR JOBS AS SOON AS JOBS ARE AVAILABLE STILL THE FAA HAS SAID IT EXPECTS TO HIRE NO MORE THAN 200 CONTROLLERS A YEAR TO FILL OPENINGS AND MANY CONTROLLERS ARE HOLDING OFF RETIREMENT TO SEE IF CONGRESS APPROVES EARLY RETIREMENT BUYOUTS THE CHECKOFF AS THE AFLCIO EXECUTIVE COUNCIL HUDDLES THIS WEEK IN FLORIDA YOUNG UNION OFFICIALS BEGIN CALLING THE GATHERING JURASSIC PARK THE COMEBACK AFTER 14 YEARS OF DECLINE THE NUMBER OF UNION MEMBERS IN THE US INCREASED IN 1993 ACCORDING TO THE LABOR DEPARTMENT GROWTH WAS CONCENTRATED IN THE PUBLIC SECTOR 9402220033 940222 US ANTITRUST INQUIRY PRAISED BY SMALL BANKERS WASHINGTON SMALL BANKERS ARE DELIGHTED THAT THE JUSTICE DEPARTMENT HAS LAUNCHED AN INVESTIGATION INTO WHETHER THE NETWORKS THAT LINK AUTOMATED TELLER MACHINES ARE LIMITING THEIR SYSTEMS SOLELY TO BANKS THAT PURCHASE OTHER SERVICES FROM THE NETWORKS ATTORNEY GENERAL JANET RENO DISCLOSED THE ANTITRUST INVESTIGATION IN A SPEECH TO THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA AT ITS ANNUAL MEETING IN ORLANDO FLA IF THE DEPARTMENT FINDS EVIDENCE OF ANTITRUST ACTIVITY SHE SAID IT WILL PRESS THE CASE IN COURT WE WERE VERY PLEASED TO HEAR THE ATTORNEY GENERAL CITE THIS AS SOMETHING THEY ARE LOOKING INTO SAID DIANE CASEY OF THE BANKERS ASSOCIATION A TRADE GROUP OF SMALL BANKS OUR BANKERS NEED ACCESS TO THOSE SYSTEMS THE JUSTICE DEPARTMENT OPENED THE ANTITRUST INVESTIGATION AFTER RECEIVING COMPLAINTS THAT ATM NETWORKS WERE PRESSURING BANKERS TO PURCHASE OTHER SERVICES FROM THE NETWORKS BANKS FOR INSTANCE COULD ALLOW THEIR CUSTOMERS TO PAY BILLS BY TELEPHONE OR THROUGH PERSONAL COMPUTERS IF THE BANK PURCHASED THE SERVICE THROUGH THE NETWORK 9402220032 940222 QUAKER OATS RAISES PRICES FOR READYTOEAT CEREALS SCOTTSDALE ARIZ QUAKER OATS CO CHICAGO RAISED PRICES OF ITS READYTOEAT CEREALS AN AVERAGE OF 22 THE MOVE QUAKER'S FIRST SUCH INCREASE IN MORE THAN A YEAR CAME IN RESPONSE TO A RECENT PRICE INCREASE AVERAGING 33 BY MARKETLEADER KELLOGG CO AND COULD REKINDLE PRICE WARS IN THE 8 BILLION US COLD CEREAL MARKET THIS WASN'T SOMETHING WE WANTED TO DO QUAKER CHAIRMAN WILLIAM D SMITHBURG SAID ADDING THAT THE CURRENT ARENA SUGGESTS WE NEED TO MEET THE COMPETITION MR SMITHBURG SAID QUAKER PROBABLY WOULD DEAL BACK MUCH OF THE INCREASES IN THE FORMS OF DEEPER DISCOUNTS WHICH MAY WELL MEAN HIGHERVALUE COUPONS FOR CONSUMERS AND MORE INSTORE SPECIALS ASKED ABOUT A RECENT STATEMENT BY KELLOGG'S CHAIRMAN THAT HE HOPED TO AVOID COSTLY PRICE WARS MR SMITHBURG REPLIED I WATCH FEET ACTION IS WHAT COUNTS QUAKER HAS 78 OF THE DOMESTIC READYTOEAT CEREAL MARKET KELLOGG 37 9402220031 940222 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S AND YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CENTRAL FIDELITY NATIONAL BANK 150 MILLION OF NOTES DUE FEB 15 1996 PRICED AT PAR TO YIELD 4785 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CENTRAL FIDELITY NATIONAL BANK IS A UNIT OF CENTRAL FIDELITY BANKS INC FEDERAL HOME LOAN BANK SYSTEM 200 MILLION OF NOTES DUE MARCH 2 1999 PRICED AT PAR TO YIELD 568 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITIBANK SECURITIES INC KIMBERLYCLARK CORP 100 MILLION OF DEBENTURES DUE FEB 15 2014 PRICED AS 6875S AT 99643 TO YIELD 6908 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 26 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO WESTERN GAS RESOURCES INC 24 MILLION SHARES OF 2625 CUMULATIVE CONVERTIBLE PREFERRED STOCK THROUGH MORGAN STANLEY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP MORGAN STANLEY INDIA INVESTMENT FUND INC INITIAL OFFERING OF 357 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 800 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1702 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 650 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1703 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REMIC SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1704 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 177 BILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199442 IS BACKED BY BOTH THE PRINCIPAL AND INTERESTONLY CLASSES OF STRIPS TRUST 259 WHICH IN TURN IS BACKED BY FANNIE MAE'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS DSL FINANCE NV AMSTERDAM GERMAN PARENT 500 BILLION ITALIAN LIRE OF 8375 EUROBONDS DUE MARCH 30 2004 AT ISSUE PRICE 10185 VIA IMI BANK LUXEMBOURG SA AND BANCA DI ROMA SPA BONDS YIELD 84 AFTER FULL FEES OF TWO GUARANTOR DEUTSCHE SIEDLUNGS & LANDESRENTENBANK FILINVEST CAYMAN ISLANDS LTD PHILIPPINES 100 MILLION OF 375 CONVERTIBLE EUROBONDS DUE FEB 28 2004 AT ISSUE PRICE PAR VIA PEREGRINE CAPITAL LTD GUARANTOR FILINVEST DEVELOPMENT CORP TWO CONVERSION OPTIONS FIRST OPTION 100 OF BONDS CONVERTIBLE INTO COMMON SHARES OF FILINVEST DEVELOPMENT AT 33 PHILIPPINE PESOS A PREMIUM OF ABOUT 50 TO 1993 NET ASSET VALUE SECOND OPTION 65 OF BONDS CONVERTIBLE INTO FILINVEST DEVELOPMENT AT 33 PESOS AND 35 OF BONDS INTO COMMON SHARES OF FILINVEST LAND INC AT 143 PESOS A PREMIUM OF 143 OVER FILINVEST LAND'S 30DAY MOVING AVERAGE SHARE PRICE CALLABLE AFTER ONE YEAR IF SHARE PRICES EXCEED 140 OF CONVERSION PRICES IF FILINVEST DEVELOPMENT HASN'T MADE SECONDARY PUBLIC SHARE OFFERING AFTER FOUR YEARS PUT OPTION EXERCISABLE WHEREBY BONDHOLDERS CAN REDEEM 65 OF BONDS AT PRICE TO YIELD 755 A MARGIN OF ABOUT 250 BASIS POINTS OVER FOURYEAR US TREASURY REMAINING 35 CONVERTIBLE INTO FILINVEST LAND FEES 25 LANDESBANK RHEINLANDPFALZ GIRONZENTRALE GERMANY 500 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1998 AT ISSUE AND REOFFER PRICE 9989 VIA LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT 00625 POINT BELOW SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 0125 LEO 2 PLC SPECIALPURPOSE VEHICLE 500 MILLION OF SENIOR MORTGAGEBACKED FLOATINGRATE EURONOTES IN TWO TRANCHES DUE APRIL 1 2032 AT ISSUE PRICE PAR VIA JP MORGAN SECURITES LTD BONDS SECURED ON RESIDENTIAL MORTGAGES ORIGINATED IN THE UNITED KINGDOM BY COMPAGNIE BANCAIRE CLASS A1 TRANCHE FOR 187 MILLION OF BONDS REOFFERED AT 9996 INTEREST FLOATS AT THREEMONTH POUND LIBOR PLUS 15 BASIS POINTS STEPPING UP TO LIBOR PLUS 30 BASIS POINTS ON OCT 1 1997 CALLABLE FROM OCT 1 1997 AT PAR AVERAGE EXPECTED LIFE 141 YEARS FEES 014 CLASS A2 TRANCHE FOR 313 MILLION OF BONDS REOFFERED AT 9978 INTEREST FLOATS AT THREEMONTH POUND LIBOR PLUS 25 BASIS POINTS STEPPING UP TO LIBOR PLUS 50 BASIS POINTS ON JAN 1 2000 CALLABLE FROM JAN 1 2000 AT PAR AVERAGE EXPECTED LIFE 515 YEARS FEES 042 PAYABLE QUARTERLY NAKAI CO JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 10 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0125 COUPON AT PAR VIA NOMURA BANK SWITZERLAND NOTES EXERCISABLE TO PURCHASE COMPANY SHARES FROM MARCH 24 UNTIL FEB 24 1998 TERMS ARE TO BE FIXED MONDAY FEES 1625 NISHIO RENT ALL CO JAPAN 70 MILLION MARKS OF 075 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 3 1998 AT ISSUE PRICE PAR VIA NOMURA BANK DEUTSCHLAND GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM 25 FROM MARCH 18 TO FEB 28 1998 TERMS ARE TO BE FIXED TOMORROW GUARANTOR INDUSTRIAL BANK OF JAPAN LTD FEES 225 SOUTH AUSTRALIAN GOVERNMENT FINANCING AUTHORITY AUSTRALIAN AGENCY 150 MILLION SWISS FRANCS OF PUBLICLY LISTED FLOATINGRATE BONDS DUE MARCH 18 1999 PRICED AT 1005 VIA UNION BANK OF SWITZERLAND COUPON 4 FIRST YEAR THEREAFTER AT SIXMONTH SWISS FRANC LIBOR LESS 01875 FEES TWO TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 150 MILLION SWISS FRANCS OF FLOATINGRATE BONDS DUE MARCH 22 2000 PRICED AT 100625 VIA SWISS BANK CORP COUPON 4 UNTIL SEPT 22 THEREAFTER AT SIXMONTH SWISS FRANC LIBOR LESS 20 BASIS POINTS FEES 225 WOOLWICH BUILDING SOCIETY UNITED KINGDOM 200 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE 9989 VIA UBS LTD PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 0125 POINT FEES 01875 9402220030 940222 ENTERPRISE SEC GETS RESTRAINT ORDER AGAINST COUPLE COMPANY LOS ANGELES THE SECURITIES AND EXCHANGE COMMISSION SAID IT OBTAINED A TEMPORARY RESTRAINING ORDER FROM A FEDERAL JUDGE AGAINST A SAN DIEGO COUPLE THAT IS ACCUSED OF DEFRAUDING MORE THAN 550 INVESTORS IN THE US OF MORE THAN 8 MILLION THE SEC ACTION WAS TAKEN AGAINST STEVEN AND JUDITH JONES AS WELL AS THEIR COMPANY AMERICAN MORTGAGE FUND INC THE AGENCY CONTENDS THAT CONTRARY TO PROMISES TO PURCHASE MORTGAGES AND GOVERNMENT SECURITIES THE JONES'S USED INVESTORS' MONEY FOR THEIR OWN BUSINESS EXPENSES THE COUPLE ALSO FAILED TO DISCLOSE THAT THEY PERSONALLY BORROWED INVESTOR MONIES THE SEC SAID AMONG OTHER THINGS THE AGENCY SAID IT IS SEEKING DISGORGEMENT FROM MR AND MRS JONES OF ALL ILLGOTTEN GAINS THE RESTRAINING ORDER BLOCKS THE COUPLE FROM ANY FURTHER VIOLATIONS OF SECURITIES LAWS AND FREEZES THEIR ASSETS AND THE COMPANY'S ASSETS THE COUPLE AND THEIR ATTORNEY DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9402220029 940222 BUSINESS BRIEF NOLAND CO NET ROSE 30 IN 4TH QUARTER AIDED BY DROP IN BAD DEBT NOLAND CO REPORTED A 30 RISE IN FOURTHQUARTER EARNINGS HELPED BY LOWER LEVELS OF BAD DEBT THE NEWPORT NEWS VA DISTRIBUTOR OF PLUMBING HEATING AND ELECTRICAL PRODUCTS SAID NET INCOME CLIMBED TO 27 MILLION OR 72 CENTS A SHARE FROM 2 MILLION OR 56 CENTS A SHARE IN THE YEAREARLIER QUARTER THE LATEST PERIOD INCLUDES ACCOUNTING CHANGES THAT REDUCED NET INCOME BY 86000 OR TWO CENTS A SHARE SALES FOR THE QUARTER WERE FLAT AT 1005 MILLION THE COMPANY SAID IT WAS OPTIMISTIC THAT THE RECOVERY IN HOUSING CONSTRUCTION WILL CONTINUE TO BOOST ITS RESULTS IN 1994 WITH SLUGGISH SALES IN THE FIRST HALF OF LAST YEAR HOWEVER THE COMPANY'S 1993 NET INCOME DROPPED 19 TO 33 MILLION OR 89 CENTS A SHARE FROM 41 MILLION OR 111 A SHARE IN 1992 THE 1993 FIGURE INCLUDES ACCOUNTING CHANGES OF 342000 OR NINE CENTS A SHARE AND A LOSS OF 253760 OR SEVEN CENTS A SHARES ON THE SALE OF A COMPANY FACILITY SALES FOR THE YEAR SLIPPED TO 4029 MILLION FROM 4121 MILLION 9402220028 940222 TECHNOLOGY INTEL HOLDS LEAD AMD SLIPS IN PCCHIP MARKET SAN JOSE CALIF INTEL CORP INCREASED ITS HOLD ON THE WORLD MICROPROCESSOR MARKET LAST YEAR WHILE RIVAL ADVANCED MICRO DEVICES INC SLIPPED IN THE RACE TO SUPPLY THE CHIPS THAT RUN PERSONAL COMPUTERS ACCORDING TO A SURVEY BY DATAQUEST INC THE MARKETRESEARCH COMPANY SAID INTEL'S ALREADYCOMMANDING LEAD CLIMBED TO 74 OR 66 BILLION OF THE MARKET IN 1993 FROM 69 OR 38 BILLION IN 1992 THE MARKET ITSELF GREW 61 TO 89 BILLION LAST YEAR FROM 55 BILLION IN 1992 AMD FELL TO THIRD WITH A 6 SHARE COMPARED WITH 10 AND WAS THE ONLY PRODUCER IN THE TOP 10 WHOSE REVENUE DECLINED LAST YEAR AMD WAS UNABLE TO INCREASE PRODUCTION FAST ENOUGH OF ITS VERSION OF INTEL'S 486 CHIP TO OFFSET A DROP IN SALES IN THE LESS POWERFUL 386 CHIP MOTOROLA INC MOVED UP TO SECOND PLACE ALTHOUGH ITS SHARE HELD AT 8 TEXAS INSTRUMENTS GRABBED A 2 SHARE UP FROM 1 MOTOROLA ALSO SURPASSED NEC CORP IN JAPAN IN THE MARKET FOR MICROCONTROLLERS WHICH ARE USED TO CONTROL THINGS LIKE AIRBAGS IN CARS MOTOROLA NABBED A 19 SLICE OF THAT MARKET IN REVENUE EDGING OUT NEC AT 17 9402220027 940222 CORRECTIONS & AMPLIFICATIONS LEONARD RING OF CHICAGO A FORMER PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA WHO WAS QUOTED IN A PAGEONE ARTICLE ABOUT THAT ORGANIZATION THURSDAY HAD BEEN INTERVIEWED JAN 11 THE ARTICLE FAILED TO NOTE THAT MR RING DIED OF A HEART ATTACK FEB 4 A RESOLUTION OPPOSING THE USE OF STATE FUNDS TO ATTRACT AN AIRLINE VENTURE HEADED BY FRANK LORENZO TO BALTIMORE/WASHINGTON AIRPORT FAILED TO PASS THE MARYLAND HOUSE OF DELEGATES A JAN 25 PAGEONE ARTICLE INCORRECTLY REPORTED THAT THE LEGISLATIVE BODY PASSED THAT RESOLUTION NATIONSBANK CORP DIDN'T TOUCH A NEW 52WEEK LOW IN TRADING ON THE NEW YORK STOCK EXCHANGE ON THURSDAY THE CORRECT LOW FOR THE DAY WAS 48 1/8 NOT THE 44 3/8 PRINTED IN FRIDAY'S EDITION ADVANCED POLYMER SYSTEMS INC REDWOOD CITY CALIF SAID IT EXPECTS TO FILE A NEW DRUG APPLICATION FOR ITS PROZONE SUN PROTECTANT PRODUCT IN THE SECOND QUARTER AN ARTICLE WEDNESDAY INCORRECTLY SAID ADVANCED POLYMER WOULD FILE AN APPLICATION IN THE SECOND HALF OF THIS YEAR 9402220026 940222 ECONOMY BIG BUSINESS FORMS GROUP TO PUSH FOR GATT PASSAGE WASHINGTON BIG US CORPORATIONS ARE EXPECTED TODAY TO ANNOUNCE A BUSINESS COALITION ORGANIZED TO LOBBY ON CAPITOL HILL FOR PASSAGE OF THE WORLD TRADE AGREEMENT REACHED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE TEXAS INSTRUMENTS INC'S CHIEF EXECUTIVE OFFICER JERRY JUNKINS IS TO HEAD THE COALITION WHICH IS BRINGING TOGETHER SUCH POWERFUL BUSINESS LOBBYING GROUPS AS THE CHAMBER OF COMMERCE THE NATIONAL ASSOCIATION OF MANUFACTURERS THE BUSINESS ROUNDTABLE AND THE EMERGENCY COMMITTEE FOR AMERICAN TRADE COMPANIES IN THE COALITION CALLED THE ALLIANCE FOR GATT NOW INCLUDE HEAVYWEIGHTS SUCH AS ABBOTT LABORATORIES AMERICAN EXPRESS CO AND INTERNATIONAL BUSINESS MACHINES CORP THE GROUP HAS HIRED EDELMAN PUBLIC RELATIONS WORLDWIDE TO PROMOTE THEIR EFFORT UNLIKE THE TORRENT OF OPPOSITION ARRAYED AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT THE GATT ACCORD ISN'T EXPECTED TO GENERATE SUCH AN OUTCRY WITH AN EARLY SHOWCASING OF THE PROGATT COALITION THE CLINTON ADMINISTRATION CAN TOUT BUSINESS SUPPORT IN PUSHING FOR CONGRESSIONAL APPROVAL BY SUMMER 9402220025 940222 CLERICAL WORK CLOGS INDIA STOCK MARKET ARCHAIC PAPER CHASE IS RUNNING BANKERS RAGGED BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA THE DEAL SEEMS STRAIGHTFORWARD ENOUGH AN OVERSEAS CLIENT OF HONGKONG & SHANGHAI BANKING CORP'S AFFILIATE HERE HAS BOUGHT ABOUT 2 MILLION OF SHARES IN AN INDIAN MUTUAL FUND BEFORE THAT TRANSACTION CAN BE COMPLETED HOWEVER THE BANK'S CLERKS MUST STAMP OR WRITE THE NEW OWNER'S NAME AND OTHER INFORMATION ON 50500 CERTIFICATES EACH REPRESENTING 50 SHARES AND ON ANOTHER 50500 SEPARATE SHARETRANSFER FORMS OTHER CLERKS WILL HAVE TO COUNT HUNDREDS OF STAMPS ON THE CERTIFICATES TO ENSURE THE STAMP DUTY HAS BEEN DULY PAID AND THAT'S ONLY THE BEGINNING OF A SETTLEMENT PROCESS THAT TYPICALLY TAKES TWO OR THREE MONTHS THIS ARCHAIC SYSTEM IS SLOWING THE FLOW OF FOREIGN INVESTMENT INTO INDIA'S STOCK MARKET WHICH HAS BECOME A DARLING OF GLOBALFUND MANAGERS IN THE PAST SIX MONTHS THE THREE BANKS THAT OFFER CUSTODIAL SERVICES FOR FOREIGN INVESTORS IN INDIA SIMPLY CAN'T KEEP UP WITH THE PAPERWORK ALTHOUGH THE GOVERNMENT HAS BEGUN TO STREAMLINE THE PROCESS MARKET ANALYSTS SAY IT IS LIKELY TO BE YEARS BEFORE AN EFFICIENT SYSTEM IS IN PLACE IT'S THE WORLD'S BIGGEST PAPER CHASE SAYS GERALD DOBBY CHIEF EXECUTIVE OFFICER OF HONGKONG BANK'S INDIAN AFFILIATE WE'RE IN DANGER OF BEING OVERWHELMED HONGKONG BANK A UNIT OF HSBC HOLDINGS PLC HANDLES THE LARGEST SHARE OF THE CUSTODIAL BUSINESS FOR FOREIGNERS AND HAS BEEN HIT THE HARDEST BY THE SURGE IN DEMAND FROM FOREIGN PENSION FUNDS INVESTMENT FUNDS AND OTHER INSTITUTIONS EAGER TO BUY INDIAN SHARES BUT CITICORP'S CITIBANK NA AND STANDARD CHARTERED PLC'S STANDARD CHARTERED BANK THE OTHER TWO BANKS PROVIDING SUCH SERVICES FOR FOREIGNERS HERE ARE FEELING THE PRESSURE TOO CITIBANK'S VAULTS BULGE WITH ALMOST 10 MILLION PIECES OF PAPER REPRESENTING SECURITIES INVESTMENTS BY CLIENTS OUTSIDE INDIA SAYS GUNIT CHADHA A BANK VICE PRESIDENT WE'RE IN CONTROL MR CHADHA SAYS BUT WE'RE STRETCHED THE BACKLOG PUTS ANOTHER BRAKE ON FOREIGNERS' BUYING ALREADY HEAVILY RESTRICTED FOREIGN INDIVIDUALS AREN'T ALLOWED TO BUY STOCKS IN INDIA DIRECTLY ALTHOUGH THEY CAN BUY SHARES OF FUNDS BASED OUTSIDE INDIA THAT INVEST IN INDIAN EQUITIES FOREIGN INSTITUTIONAL INVESTORS CAN BUY INDIAN SHARES DIRECTLY ONLY IF THEY HAVE APPROVAL FROM THE STOCK EXCHANGE BOARD OF INDIA OR SEBI WHICH HAS APPROVED NEARLY 140 SUCH INSTITUTIONS ONCE THE INSTITUTIONS GET THAT GOAHEAD THEY NEED TO FIND A BANK IN INDIA TO PROVIDE SECURITIES CUSTODIAL SERVICES BUT ALL THREE OF THE BANKS PROVIDING SUCH SERVICES TO FOREIGNERS SAY THEY TEMPORARILY HAVE STOPPED ACCEPTING NEW CLIENTS IN AN EFFORT TO CATCH UP MR CHADHA SAYS CITIBANK MIGHT CONSIDER TAKING NEW CUSTODIAL CLIENTS LATER IN THE YEAR A SPOKESMAN FOR STANDARD CHARTERED SAYS HIS BANK IS EXPANDING ITS SMALL CUSTODYSERVICES DEPARTMENT BUT FOR NOW IS CONFINING THE SERVICE TO EXISTING CLIENTS HONGKONG BANK MEANWHILE IS ASKING ITS CLIENTS TO SLOW DOWN IN A LETTER SENT LATE LAST MONTH MR DOBBY PLEADED IT IS IMPERATIVE THAT THE VOLUME OF SETTLEMENT IN INDIAN EQUITIES IS REDUCED IMMEDIATELY TO LEVELS WHICH WE AND THE REST OF THE INDIAN MARKET CAN PROCESS IN A TIMELY AND ORDERLY FASHION IF ANYONE IS LISTENING IT HASN'T SHOWN UP IN THE FIGURES ACCORDING TO SEBI NET FOREIGN BUYING OF INDIAN EQUITIES TOTALED NEARLY 12 BILLION IN THE 10 MONTHS ENDED JAN 31 IN JANUARY ALONE THE BUYING CAME TO ABOUT 400 MILLION DEMAND HAS FAR OUTSTRIPPED THE PREDICTIONS OF INDIAN AUTHORITIES WHO EXPECTED NET PURCHASES OF 500 MILLION IN THE YEAR ENDING MARCH 31 THE FOREIGNERS' SUDDEN ENTHUSIASM HAS HELPED PROPEL THE BOMBAY SENSITIVE INDEX OF 30 BLUECHIP SHARES TO ABOUT 3900 NEARLY DOUBLE ITS LEVEL IN MID1993 BROKERS BELIEVE THAT AT LEAST 25 BILLION MORE IS LIKELY TO BE INVESTED BY FOREIGNERS IN 1994 IF THE CUSTODIAL BOTTLENECK IS EASED 100 MILLION WILL COME IN THREE DAYS SAYS AKASH PRAKASH OF MORGAN STANLEY ASSET MANAGEMENT INDIA PVT LTD IF IT CONTINUES ANOTHER THREE OR FOUR MONTHS AT LEAST 300 MILLION OF POTENTIAL INVESTMENT WILL BE LEFT OUT EITHER BECAUSE THERE'S NO CUSTODIAN OR EXISTING ACCOUNTS HAVE HAD A CAP PUT ON THEM UNLIKE INDIAN BROKERS OR INVESTORS FOREIGN INVESTORS MUST TAKE PHYSICAL DELIVERY OF SHARES BEFORE GAINING THE RIGHT TO SELL THEM IN THE ABSENCE OF A COMPUTERIZED SYSTEM FOR TRANSFERRING SHARE CERTIFICATES SUCH DELIVERIES TAKE MONTHS A LOOK AT THE RAPIDLY EXPANDING CUSTODIAL SERVICES DEPARTMENT AT HONGKONG BANK SHOWS WHY THE PROCESS IS SO SLOW AT ABOUT THREE MINUTES FOR EACH OF 50500 INDIVIDUAL CERTIFICATES PROCESSING THAT 2 MILLION ORDER OF MUTUALFUND SHARES REQUIRES 2525 MANHOURS THE STAFF WHICH TOTALED 30 PEOPLE FOUR MONTHS AGO HAS BLOATED TO 180 WORKING IN TWO SHIFTS FROM 730 AM TO 10 PM THE BANK HAS HAD TO RECALL SOME CLERKS FROM RETIREMENT BANKS USUALLY MANAGE TO COMPLETE THEIR WORK WITHIN 48 HOURS BUT THE SHARES THEN MUST BE SENT TO REGISTRARS OR THE ISSUING COMPANIES SO RECORDS CAN BE UPDATED THAT OFTEN EATS UP TWO OR THREE MONTHS BUT THINGS MOVE MUCH SLOWER WHEN ERRORS OR SUSPECTED FORGERIES CROP UP ABOUT 2 TO 10 ARE REJECTED AND HAVE TO BE RECYCLED SAYS STEVE PAGE A SENIOR MANAGER IN THE CUSTODIAL DEPARTMENT AT HONGKONG BANK SHARES REFUSED BY REGISTRARS MUST BE RETURNED TO THE BROKERS WHO SOLD THEM FOR REPROCESSING THIS CAN TAKE SIX TO 12 MONTHS SAYS MR CHADHA OF CITIBANK WHEN IMMENSE WADS OF PAPERWORK BEGAN TO CLOG THE SYSTEM IN DECEMBER HONGKONG BANK'S MR DOBBY AND OTHERS LOBBIED WITH THE INDIAN AUTHORITIES TO STREAMLINE PROCEDURES LAST MONTH THE CUSTODIANS GAINED TWO MAJOR CONCESSIONS INSTEAD OF AFFIXING STAMPS TO EACH CERTIFICATE AS REQUIRED BY A LAW PASSED IN 1899 THE CUSTODIANS NOW CAN PAY TAX ON TRANSACTIONS BY CHECK IN A CONSOLIDATED AMOUNT THE AUTHORITIES ALSO PERMITTED THEM TO USE JUMBO TRANSFER DEEDS ENABLING THEM TO RECORD THE SALE OF NUMEROUS SHARE CERTIFICATES ON ONE DEED THESE CONCESSIONS BANKERS ESTIMATE HAVE REDUCED THE PROCESSING TIME BY AROUND HALF EVEN SO THE BANKS ARE SEEKING FURTHER SIMPLIFICATIONS SUCH AS THE RIGHT TO USE FACSIMILE SIGNATURES AND A REDUCTION IN THE DETAILS THEY NEED TO RECORD THE SOLUTION IS THAT WE HAVE TO MOVE TO PAPERLESS TRADING AND CREATE CENTRAL DEPOSITORIES INSTEAD OF THIS ARCHAIC SYSTEM OF TRADING PIECES OF PAPER SAYS MUKESH AMBANI VICE CHAIRMAN OF RELIANCE INDUSTRIES LTD A BOMBAYBASED PETROCHEMICAL FIBERS AND TEXTILES COMPANY BUT MG DAMANI PRESIDENT OF THE BOMBAY STOCK BROKERS ASSOCIATION THINKS IT WILL BE AT LEAST FIVE YEARS BEFORE INDIA CAN DISPENSE WITH PHYSICAL DELIVERY OF SHARE CERTIFICATES AND SETTLE TRANSACTIONS VIA COMPUTER IN THE MEANTIME SOME INDIAN OFFICIALS HOPE LOCAL DEPOSITORY SERVICES WILL BE ABLE TO SERVE FOREIGN INSTITUTIONS PERHAPS THROUGH SUBCONTRACTS AWARDED BY HONGKONG BANK CITIBANK OR STANDARD CHARTERED 9402220024 940222 FOREIGN EXCHANGE FOCUS MOVES TO GERMANY AS MAJOR UNION GIRDS FOR BIGGEST WALKOUT IN A DECADE BY JOHN P HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE CURRENCY MARKETS' ATTENTION IS EXPECTED TO SHIFT THIS WEEK TO DEVELOPMENTS IN GERMANY AND AWAY FROM JAPAN THE COLLAPSE OF TRADE TALKS BETWEEN THE US AND JAPAN AND POSSIBLE RETALIATORY MEASURES DOMINATED MARKET ATTENTION LAST WEEK BUT GERMANY THE HEAVYWEIGHT AMONG EUROPEAN ECONOMIES FACES THE PROSPECT OF THE LARGEST STRIKE BY INDUSTRIAL WORKERS IN A DECADE MARKET PARTICIPANTS SAID THE POSSIBILITY OF A WALKOUT IS VIEWED AS A REFERENDUM ON GERMAN ECONOMIC HEALTH AND BY EXTENSION THE INTERESTRATE OUTLOOK FOR MOST OF EUROPE LAST WEEK THE GERMAN CENTRAL BANK LOWERED ITS DISCOUNT RATE TO 525 FROM 575 BUT IT LEFT THE RATE FOR BANK OVERNIGHT REFINANCING AT 6 LATE IN NEW YORK FRIDAY THE DOLLAR WAS QUOTED AT 17140 MARKS DOWN FROM 17233 MARKS LATE THURSDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10460 YEN UP FROM 10410 YEN STERLING WAS TRADING AT 14820 UP FROM 14790 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10605 YEN AND AT 17265 MARKS YESTERDAY IN LONDON WITH TRADING THINNED BY A HOLIDAY IN THE US THE DOLLAR WAS QUOTED AT 17303 MARKS UP FROM 17140 MARKS IN NEW YORK LATE FRIDAY THE YEN WHICH STRENGTHENED SIGNIFICANTLY FOLLOWING THE COLLAPSE OF THE BILATERAL TRADE TALKS WEAKENED AGAINST THE DOLLAR WHICH WAS QUOTED AT 10625 YEN IN LONDON UP FROM 10460 YEN FRIDAY YESTERDAY GERMANY'S HUGE IG METALL UNION DECIDED TO TAKE A STRIKE VOTE IN EARLY MARCH IN THE LOWER SAXONY BARGAINING DISTRICTS WHICH COULD BE FOLLOWED LATER BY A VOTE IN THE HAMBURG AND SCHLESWIGHOLSTEIN REGION PEOPLE CLOSE TO THE UNION SAID IT IS TYPICAL FOR IG METALL TO CONCENTRATE A STRIKE ON SELECTED DISTRICTS AND NOT CALL A NATIONWIDE WALKOUT THE LOWER SAXONY REGION INCLUDES 90000 EMPLOYEES AT 230 COMPANIES IN ALL THE UNION HAS 32 MILLION WESTERN GERMAN MEMBERS THE PRELIMINARY DATE FOR A STRIKE IS MARCH 7 IF APPROVED THE WALKOUT WOULD START SOON AFTER CUTS IN GERMAN BANKRESERVE REQUIREMENTS GO INTO EFFECT MARCH 1 IT'S ONLY GOING TO SCREW UP THEIR ECONOMY MORE SHOULD A STRIKE OCCUR ONE PHILADELPHIABASED TRADER SAID THE DOLLAR FEELS WELLBID TUESDAY MORNING THE DOLLAR/MARK CROSS IS GOING TO OPEN HIGHER SAID MARGARET KUDARAUSKAS SENIOR FOREIGN EXCHANGE ANALYST AT TECHNICAL DATA THIS STRIKE IS ONE ASPECT ONE WOULD THINK THE MARKET HAS ALREADY DISCOUNTED BUT I'M NOT SURE IT HAS FULLY SHE ADDED THE GERMAN ECONOMY IS JUST IN SAD SHAPE THE LAST THING THE GERMAN ECONOMY NEEDS RIGHT NOW IS SOMETHING TO DEFLATE IT SAID SANDY BATTEN SENIOR ECONOMIST AT CITIBANK YOU NEVER KNOW HOW MUCH THIS ALREADY HAS BEEN PRICED IN IN THE US ALAN GREENSPAN FEDERAL RESERVE BOARD CHAIRMAN IS SLATED TO TESTIFY TODAY BEFORE A HOUSE BANKING SUBCOMMITTEE EVERYBODY IN THE MARKET WILL HANG ON TO EVERY WORD HE SAYS SAID JERRY CORNILLE TRADER AT CARROLL MCENTEE & MCGINLEY IN CHICAGO GREENSPAN IS HIGHLY LIKELY TO MENTION THE DOLLAR BECOMING WEAKER AGAINST THE YEN WHICH MAY BE SEEN AS CONTRIBUTING TO INFLATION CONCERNS SAID ERIC NICKERSON FOREIGNEXCHANGE ECONOMIST AT BA SECURITIES INC THE US IS WIDELY EXPECTED TO RETALIATE AGAINST THE REFUSAL OF THE JAPANESE TO OPEN MORE MARKETS AND REDUCE THE TRADE IMBALANCE BETWEEN THE TWO COUNTRIES HOWEVER IT WILL TAKE SEVERAL MONTHS BEFORE THE EFFECTS OF ANY TRADE SANCTIONS ARE FELT IN THE MEANTIME MANY PARTICIPANTS SAY THE US CAN TALK UP THE YEN RESULTING IN HIGHER PRICES FOR JAPANESE EXPORTS AND MAKING THESE PRODUCTS MORE COSTLY FOR US CONSUMERS JAPAN'S LARGEST MARKET THE JAPANESE ECONOMY IS HEAVILY DEPENDENT ON EXPORTING GOODS SO PRICE INCREASES TEND TO HURT IT MORE THAN MOST OTHER ECONOMIES THE ADMINISTRATION IS FLAUNTING THE FACT THAT IT WANTS A WEAKER DOLLAR AGAINST THE YEN SAID CITIBANK'S MR BATTEN THIS MAY MAKE FOREIGN INVESTORS MORE SUSPECT ABOUT HOLDING US DOLLARDENOMINATED BONDS 9402220023 940222 REVIEW & OUTLOOK EDITORIAL BANZAI PERHAPS THE LONG WEEKEND WILL HAVE A CALMING EFFECT ON THE FINANCIAL MARKETS WHICH ENDED THE WEEK NERVOUS BONDS STAGED A TWODAY PLUNGE WHILE STOCKS FELL 14 POINTS ON THURSDAY AND 35 ON FRIDAY US TREASURY BONDS SANK SOME MORE IN OVERSEAS TRADING MONDAY MOST STOCK MARKETS WERE SHARPLY OFF DROPPING A PERCENT OR MORE IN TORONTO LONDON PARIS AND FRANKFURT THE BIG EXCEPTION WAS TOKYO WHERE THE NIKKEI INDEX GAINED OVER TWO PERCENT AS THE BANK OF JAPAN REPEATEDLY INTERVENED TO SUPPORT THE FALLING DOLLAR MOST OF THE CHITCHAT IN THE MARKET CONCERNS THE FEDERAL RESERVE AND ITS DECISION TO PUSH UP SHORTTERM INTEREST RATES ALL EYES ARE SUPPOSED TO BE ON CHAIRMAN GREENSPAN'S IMPENDING TESTIMONY WE HOPE AND TRUST HE'LL MAKE CLEAR THAT THE BIG PROBLEM IS WITH LONGTERM RATES WHICH MARCH TO A TUNE PLAYED BY BROAD MARKETS NOT THE FED OUR OWN FEAR IS THAT THE FED SHOULD HAVE BOOSTED SHORT RATES AT THE DEC 21 MEETING AS GOVERNORS WAYNE ANGELL AND LARRY LINDSEY URGED HISTORY SUGGESTS THAT WHEN THE FED MOVES TOO LATE AND TOO LITTLE IT MAY FIND ITSELF IN A SERIES OF BOOSTS WITHOUT EVER QUITE CATCHING UP WITH MARKET PRESSURES IN ANY EVENT WHAT ABOUT THAT ELEPHANT OVER IN THE CORNER EVERYONE FRETTING ABOUT A QUARTERPOINT BOOST IN THE FED FUNDS RATE OUGHT TO STOP FOR A MOMENT TO NOTICE THAT THE CLINTON ADMINISTRATION IS THREATENING TO START A TRADE WAR THE 1987 MARKET CRASH CAME REMEMBER WHEN THE BUSH ADMINISTRATION DECLARED WAR ON THE BUNDESBANK FOR THAT MATTER THE 1929 CRASH CAME AS THE SMOOTHAWLEY TARIFF WAS DEBATED BOTH TARIFF WARS AND COMPETITIVE DEVALUATIONS WERE HALLMARKS OF THE GREAT DEPRESSION SO NOW COMES THE ADMINISTRATION WAR ON JAPAN OVER THE REFUSAL BY ITS NEW REFORMIST GOVERNMENT TO PRACTICE MANAGED TRADE TO THE BENEFIT OF INDUSTRIES REPRESENTED BY THE BIGGEST BELTWAY LOBBYISTS WE'RE GLAD IT'S DENYING AN ATTEMPT TO TRASH THE DOLLAR BUT THE TRASHING SOMEHOW SEEMS TO BE HAPPENING ANYWAY WE HOPE THAT THE LIKES OF LLOYD BENTSEN AND ROBERT RUBIN UNDERSTAND THE NEED FOR SOME REASSURANCE MARKETS ARE ENTITLED TO BE NERVOUS WHEN AN AMERICAN ADMINISTRATION IS RUNNING AROUND SHOUTING BANZAI 9402220022 940222 WORLD MARKETS TOKYO SHARES RALLY ON DEALINGS LINKED TO YEN BUT SOFT FUTURES HURT LONDON FRANKFURT PRICES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS CLIMBED 23 MONDAY ON ARBITRAGELINKED BUYING AS STOCKINDEX FUTURES FIRMED BECAUSE THE JAPANESE YEN RETREATED IN CURRENCY DEALINGS AGAINST THE US DOLLAR THOUGH VOLUME WAS EXTREMELY THIN BUT IN LONDON PRICES FELL SHARPLY FOLLOWING A SEVERE SLIDE IN THE FUTURES MARKET FRANKFURT SHARES LOST 15 BECAUSE OF SOFT BOND AND EQUITY FUTURES MADRID PRICES DIVED 21 LED DOWN BY THE BOND MARKET SYDNEY EQUITIES SANK 2 IN A TECHNICAL CORRECTION THAT LEFT ALMOST ALL LEADING INDUSTRIAL MINING AND RESOURCE STOCKS DOWN HONG KONG PRICES PLUNGED 34 DESPITE ACTION TO HOLD INTEREST RATES STEADY IN THE BRITISH COLONY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11483 DOWN 096 REFLECTING LOWER MARKETS IN ALL THREE MAJOR REGIONS THE AMERICAS EUROPE AND ASIA/PACIFIC PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22381 UP 529 OR 24 WITH INDUSTRIAL OXYGEN OF MALAYSIA POSTING AN 62 GAIN IN ITS LOCAL CURRENCY MINING STOCKS TRAILED AT 12528 DOWN 296 OR 23 WITH BROKEN HILL PROPRIETARY OF AUSTRALIA SLIDING 38 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 2821 POINTS FRIDAY ADVANCED 43434 TO 1939394 NEAR THE DAY'S HIGH ON TUESDAY THE NIKKEI INDEX ROSE 2910 POINTS TO CLOSE THE MORNING SESSION AT 1942304 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2651 MILLION SHARES IN THE PREVIOUS SESSION ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 661327 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 356 POINTS FRIDAY ROSE 1285 TO 156996 ACTIVITY WAS EXTREMELY SLUGGISH BECAUSE OF A LACK OF INCENTIVES TO LURE INVESTORS FROM THE SIDELINES AHEAD OF THE SATURDAY MEETING OF FINANCE MINISTERS AND CENTRAL BANKERS FROM THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS TOKYO INVESTORS CONTINUED TO POSTPONE MAJOR MOVES AMID UNCERTAINTY ABOUT CURRENCY DEVELOPMENTS THE ARBITRAGELINKED BUYING IN AFTERNOON DEALINGS WAS PROMPTED BY A SHARP RETREAT BY THE YEN REPEATED INTERVENTION BY THE BANK OF JAPAN IN THE CURRENCY MARKET MONDAY TO BUY DOLLARS FOR YEN WAS PARTLY RESPONSIBLE FOR THE GAINS IN NIKKEIINDEX FUTURES PRICES WHICH ALSO WERE HELPED BY INCREASING SIGNS THAT JAPAN COULD UNVEIL FURTHER STEPS TO DEAL WITH ITS HUGE CURRENT ACCOUNT SURPLUS AHEAD OF THE G7 MEETING SUCH STEPS COULD INCLUDE FURTHER PROMOTION OF IMPORTS AND DEREGULATORY MEASURES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLUMPED 323 POINTS TO 33503 JUST 24 POINTS ABOVE THE INTRADAY LOW THE FT 30STOCK INDEX LOST 211 POINTS TO 25858 VOLUME WAS 5063 MILLION SHARES DOWN FROM 6309 MILLION SHARES IN THE PREVIOUS SESSION AS MANY PLAYERS STAYED OUT BECAUSE OF THE US MARKET HOLIDAY WHICH THINNED PARTICIPANTS RANKS WORLDWIDE AND LEFT MANY MARKETS DIRECTIONLESS THE FTSE 100 TUMBLED ALMOST 30 POINTS AT THE OPENING AS MARKET MAKERS TRIED TO STALL ANY PANIC SELLING FOLLOWING BIG DROPS IN THE US STOCK AND GOVERNMENT BOND MARKETS AFTER LONDON TRADING CLOSED FRIDAY THE 100STOCK INDEX WHICH MARKED A SESSION HIGH MONDAY OF 33719 SLID BECAUSE THE MARCH STOCKINDEX FUTURES CONTRACT STOOD AT A BIG DISCOUNT TO THE STOCK MARKET LONDON INVESTORS ALSO WERE CONCERNED THAT THE US COULD RAISE INTEREST RATES AGAIN SOON ENCOURAGING US INVESTORS TO PULL OUT OF BRITISH EQUITIES IN FRANKFURT THE DAX 30STOCK INDEX WHICH JUMPED 2325 POINTS FRIDAY TUMBLED 3244 TO 211953 AFTER ENTHUSIASM FADED FOLLOWING LAST THURSDAY'S CUT IN A KEY GERMAN INTEREST RATE AND THE SOFT MARKET WAS PULLED DOWN BY MARCH FUTURES DEALINGS IN GOVERNMENT BONDS THE SELLOFF ALSO RESULTED FROM BROAD PESSIMISM ABOUT SOME GERMAN CORPORATE PROSPECTS IN PARIS STOCKS SLID 16 AFTER DECLINING THROUGHOUT THE DAY BECAUSE OF POSITION LIQUIDATIONS TIMED TO TRADING ACCOUNT PERIODS AND DISAPPOINTMENT THAT FRENCH INTEREST RATES REMAINED UNCHANGED AFTER SEVERAL OTHER EUROPEAN CENTRAL BANKS LOWERED THEIR KEY RATES LATE LAST WEEK BUT STOCKS' MOVES WERE EXAGGERATED BY THIN VOLUME AS FUND MANAGERS' RANKS WERE THINNED BY FRENCH SCHOOL VACATIONS AND MANY INVESTORS WORRIED ABOUT THE CIVIL WAR IN BOSNIA IN MADRID STOCKS SANK 21 THE BOURSE'S SHARPEST DECLINE THIS YEAR ON ACROSSTHEBOARD SELLING PROMPTED BY A FURTHER CORRECTION IN THE BOND MARKET WHICH WAS UNSETTLED BY EXPECTATIONS OF MORE RATE INCREASES IN THE US SENTIMENT ALSO WAS HURT BY WORRIES ABOUT DEVELOPMENTS IN THE FORMER YUGOSLAVIA AND ABOUT A POTENTIAL TRADE WAR BETWEEN THE US AND JAPAN IN BRUSSELS PRICES FELL BROADLY AS A RISE IN BELGIAN LONGTERM INTEREST RATES ADDED TO BEARISH SIGNALS SUCH AS THE DOLLAR'S WEAKNESS AND THE US RATE BOOST THAT HAVE TURNED INVESTORS CAUTIOUS IN SYDNEY STOCKS' SHARP DROP WAS LINKED TO LOWER BOND AND EQUITIES MARKETS ABROAD RECENT BUOYANT ECONOMIC DATA FOR AUSTRALIA SUGGESTED THE GOVERNMENT MIGHT REEVALUATE MONETARY POLICY THOUGH THE STOCK MARKET'S CORRECTION WAS VIEWED AS NORMAL WITH SOME ANALYSTS SAYING AUSTRALIA AND THE US DON'T NEED TO INCREASE INTEREST RATES SOON GOLD STOCKS FELL ALONG WITH THE PRICE OF THE METAL IN HONG KONG SHARES' DEEP DECLINES IN THIS YEAR'S LIGHTEST TRADING QUASHED HOPES THAT LOCAL BANKS' DECISION TO HOLD STEADY ON INTERESTRATE POLICY WOULD SPARK A BULLISH REACTION IN THE RECENTLY LACKLUSTER MARKET SO FAR THIS YEAR THE BENCHMARK INDEX HAS FALLEN 12 INVESTORS HAD BEEN NERVOUS THAT HONG KONG WOULD FOLLOW THIS MONTH'S US CREDITTIGHTENING MOVE BUT THE HONG KONG ASSOCIATION OF BANKS LEFT LENDING RATES UNCHANGED YET STOCK SELLERS WERE CHARACTERIZED AS UNCONCERNED ABOUT RATES THE HONG KONG RATE DELAY UNTIL THE US SIGNALS OR MOVES ON MONETARY POLICY ADDED TO ANXIETY ABOUT THE TIMING FOR ANY HONG KONG RATE INCREASES IN SINGAPORE PRICES SCORED LATE GAINS TO END HIGHER IN SLOW DEALINGS LITTLE AFFECTED BY 1993 GROSS DOMESTIC PRODUCT DATA BUT INFLUENCED BY STATE ELECTION RESULTS IN MALAYSIA IN KUALA LUMPUR SHARES ENDED STEADY AS A RESURGENCE IN SPECULATIVE ACTIVITY OFFSET SOFTNESS IN BLUE CHIPS IN MANILA SHARES FELL IN LIGHT DEALINGS AS SENTIMENT WAS DAMPED BY WEAKNESS IN OVERSEAS EXCHANGES IN TAIPEI THE MARKET LOGGED ITS SIXTH DROP IN SEVEN SESSIONS BLUE CHIPS WERE LOSERS AS MANY INVESTORS BIDED THEIR TIME AND HELD POSITIONS AWAITING A TAIWAN CENTRAL BANK OPENING OF THE BOURSE TO MORE FOREIGN FUNDS AND LOOSENING THE MONEY SUPPLY IN WELLINGTON STOCKS GAVE UP 18 BECAUSE OF WEAKER WORLD BOURSES LATE LAST WEEK AND A RISE IN NEW ZEALAND DEBTMARKET YIELDS AS WELL AS THE US HOLIDAY MONDAY BUT IN SEOUL STOCKS GAINED BOOSTED BY GROWING OPTIMISM THAT THE SOUTH KOREAN GOVERNMENT MAY PROVIDE THE MARKET WITH SOME POSITIVE FACTORS THIS WEEK IN MEXICO CITY PRICES DROPPED SHARPLY IN LIGHT TRADING AS THE GOVERNMENT REPORTED WEAK 1993 ECONOMIC GROWTH OF JUST 04 WHEN 11 WAS EXPECTED AND REBELS WERE TALKING TOUGH AHEAD OF A MEETING WITH GOVERNMENT OFFICIALS 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 9402220021 940222 BUSINESS BRIEF GREENWICH PHARMACEUTICALS INC LOSS WIDENED FOR 4TH PERIOD ADVISORY FIRM IS RETAINED GREENWICH PHARMACEUTICALS INC POSTED A WIDENED LOSS FOR THE FOURTH QUARTER AND HIRED AN INVESTMENT BANKING FIRM TO FIND WAYS TO MAXIMIZE THE VALUE OF THE COMPANY TO ITS STOCKHOLDERS GREENWICH A DRUG MAKER HAD A LOSS OF 99 MILLION OR 28 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 47 MILLION OR 17 CENTS A SHARE THE COMPANY WAS FORCED TO WRITE DOWN ITS INVENTORY BY 51 MILLION IN THE QUARTER BECAUSE OF AN UNFAVORABLE RULING ON ONE OF ITS DRUGS BY THE FOOD AND DRUG ADMINISTRATION THE COMPANY ALSO SAID IT COMPLETED A RESTRUCTURING THAT WILL RESULT IN A 17 MILLION FIRSTQUARTER CHARGE THE FORT WASHINGTON PA COMPANY SAID IT HIRED THE NEW YORK INVESTMENT BANKING FIRM D BLECH & CO TO SEEK WAYS TO INCREASE ITS SHAREHOLDER VALUE 9402220020 940222 GROWTH AT CENTURY COMMUNICATIONS IS SEEN CONTINUING BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW CANAAN CONN CENTURY COMMUNICATIONS CORP EXPECTS FISCAL THIRDQUARTER GROWTH IN REVENUE CASH FLOW AND SUBSCRIBERS TO BE IN LINE WITH ITS SECOND QUARTER BERNARD P GALLAGHER PRESIDENT AND CHIEF OPERATING OFFICER SAID HE SEES THE GROWTH EVEN THOUGH THE CABLE TELEVISION AND CELLULAR TELEPHONE COMPANY IS STILL ASSESSING THE COSTS OF CONTINUING REGULATION INCLUDING A 10 DECLINE IN REGULATED RATES ALONG WITH NEW EXPENSES FROM THE EARTHQUAKE IN SOUTHERN CALIFORNIA IN THE FISCAL SECOND QUARTER ENDED NOV 30 THE COMPANY'S CABLE REVENUE ROSE ABOUT 5 FROM A YEAR EARLIER BECAUSE OF NEW SUBSCRIBERS AND NEW SERVICES AS WELL AS AN EXPANSION OF NONSUBSCRIBER REVENUE PARTICULARLY ADVERTISING MR GALLAGHER SAID IN AN INTERVIEW ADVERTISING REVENUE IS UP NEARLY 40 THIS FISCAL YEAR CASH FLOWS FROM CABLE TV OPERATIONS ARE ALSO UP ABOUT 5 OR 6 IN THE QUARTER CENTURY POSTED A 10 INCREASE IN REVENUE IN THE SECOND QUARTER TO 945 MILLION THE COMPANY HAD A NET LOSS OF 95 MILLION OR 12 CENTS A SHARE IN THE QUARTER IN THE YEARAGO THIRD QUARTER CENTURY HAD A NET LOSS OF 11 MILLION OR 15 CENTS A SHARE ON REVENUE OF 854 MILLION MR GALLAGHER EXPECTS THE COMPANY TO CONTINUE TO REPORT LOSSES FOR THE NEXT FEW YEARS HE DECLINED TO PREDICT THE SIZE OF THE LOSS FOR THE FISCAL THIRD QUARTER WHICH ENDS FEB 28 BECAUSE THE COMPANY HAS ACCUMULATED ITS CABLE SYSTEMS THROUGH ACQUISITIONS AND IS SUBJECT TO PURCHASEACCOUNTING RULES IT MUST DEPRECIATE CAPITAL SPENDING AND AMORTIZE ACQUISITION COSTS OVER PERIODS AVERAGING 10 YEARS THIS CREATES SUBSTANTIAL LOSSES IN THE COMPANY'S INCOME STATEMENT THUS INVESTORS TEND TO LOOK AT NONTRADITIONAL FINANCIALSTATEMENT MEASURES CONCENTRATING ON CASH FLOW FOR INSTANCE RATHER THAN EARNINGS CENTURY OPERATES 55 CABLE TELEVISION SYSTEMS IN 24 STATES AND PUERTO RICO WITH THE LARGEST SYSTEM IN THE LOS ANGELES AREA THE COMPANY ALSO OWNS ABOUT 55 OF CENTENNIAL CELLULAR CORP A CELLULAR PHONE CONCERN THAT OPERATES 13 SYSTEMS MOSTLY IN MICHIGAN INDIANA VIRGINIA CALIFORNIA ARIZONA AND TEXAS THAT BUSINESS STILL IN ITS EARLY STAGES IS GROWING DRAMATICALLY MR GALLAGHER SAID CELLULAR REVENUE HAS BEEN RISING MORE THAN 30 WHILE CASH FLOW IN THOSE OPERATIONS WAS UP MORE THAN 40 FOR THE SECOND QUARTER WE'RE NOT DISAPPOINTED IN OUR OPERATIONS GIVEN THE FACT THEY'VE BEEN TURNED UPSIDE DOWN A COUPLE OF TIMES BECAUSE OF CHANGES IN REGULATIONS INCLUDING RATE REGULATION MR GALLAGHER SAID 9402220019 940222 LEISURE & ARTS THE GALLERY ITALY CONFRONTS AN ARTIST OF THE REGIME BY FREDERIKA RANDALL IF THE MODERNIST PAINTER MARIO SIRONI HAS BEEN SOMEWHAT NEGLECTED THERE IS A REASON SOME PEOPLE WOULD SAY A VERY GOOD REASON THE PROBLEM IS THAT SIRONI WHO STARTED OUT HIS CAREER WITH THE AGGRESSIVELY MODERN FUTURISTS NEVER ABANDONED FASCIST POLITICS WHILE OTHER ARTISTS AND INTELLECTUALS DISTANCED THEMSELVES SIRONI CONTINUED TO PLACE HIS TALENT AT THE SERVICE OF THE REGIME RIGHT THROUGH THE 1930S TRUE MUCH OF HIS BEST WORK THE MELANCHOLY URBAN LANDSCAPES THAT SEEM TO SMELL OF LONELINESS AND AIR POLLUTION INVOLVED A FORMAL AESTHETIC QUEST IN WHICH POLITICS WAS SECONDARY BUT WHAT ABOUT THE WALL MURALS HE CREATED TO DECORATE THE NEW FASCIST PUBLIC ARCHITECTURE THE SHARP VIGNETTES AND FLATTERING ILLUSTRATIONS HE SUPPLIED TO PARTY PUBLICATIONS THE FACT IS SIRONI WAS A BELIEVER AND THAT WAS SOMETHING THE CRITICS SOME OF WHOM IDENTIFIED HIM AS A GENUINE 20THCENTURY MASTER MIGHT HAVE WISHED TO GLOSS OVER BUT COULDN'T THIS WAS THE SORT OF PROBLEM THAT SOCIAL DEMOCRATIC AND GREEN OFFICIALS IN THE GERMAN CITY OF DARMSTADT HAD IN MIND IN DECEMBER WHEN THEY CANCELED A PLANNED SIRONI EXHIBIT THERE ON THE GROUNDS IT COULD FOMENT NEONAZISM THEIR CONCERNS WERE VALID BUT PARADOXICALLY ANYONE WHO TAKES THEM SERIOUSLY SHOULD SEE THE IMPORTANT SIRONI RETROSPECTIVE AT ROME'S GALLERIA NAZIONALE D'ARTE MODERNA AT LEAST THROUGH SUNDAY ITALY IT SEEMS HAS DECIDED TO FACE THIS BROODING PROBLEMATIC FIGURE IN ALL HIS CONTRADICTIONS AND THE RESULTING SHOW IS ONE OF THE BEST ARGUMENTS I CAN IMAGINE FOR FULL DISCLOSURE WHEN IT COMES TO ARTISTS AND 20THCENTURY POLITICS THE 400 PAINTINGS DRAWINGS ILLUSTRATIONS AND THEATRICAL SKETCHES COVER EVERY AREA OF SIRONI'S PROLIFIC AND EXTREMELY VARIED OUTPUT BETWEEN 1904 WHEN HE WAS 19 AND 1961 WHEN HE DIED SOME COMMENTATORS HAVE SAID TOO MUCH IS INCLUDED I FEEL THE OPPOSITE THE MIXTURE OF THE PAINTERLY AND THE TOPICAL THE POLITICAL CARTOONS AND MAGAZINE COVERS PUTS THE PAINTINGS IN A VISUAL HISTORICAL CONTEXT THAT SPANS MOST OF THE FIRST HALF OF THE CENTURY AND PROVIDES A FAR MORE DIRECT COMMENTARY THAN BLOCKS OF ARTHISTORICAL TEXT ON THE WALL THE SHOW BEGINS WELL BEFORE WORLD WAR I SOWED THE CHAOS THAT BROUGHT MUSSOLINI TO POWER ALTHOUGH SIRONI'S DOMESTIC CIRCLE WAS COMFORTABLE HAUNTING PORTRAITS OF A SISTER A BROTHER HIS MOTHER AND OF HIMSELF PRODUCED DURING A PERIOD OF YOUTHFUL CRISIS BETWEEN 1905 AND 1910 REFLECT A MELANCHOLY NOTE THAT PERSISTED THROUGH HIS LIFETIME IT MAY PARTIALLY EXPLAIN WHY THIS COMMITTED ARTIST OF THE REGIME OFTEN FAILED TO PROVIDE THE PRESCRIBED IMAGES OF FASCIST UPLIFT HIS HEAVYLIMBED SHEPHERDS AND SAILORS VAGUELY CELEBRATING THE COMMON MAN HAVE AN AIR OF MUTE ARCHAIC SADNESS THAT ISN'T VERY INSPIRING CUBIST EXPERIMENTS LED THOSE FIGURES EVEN FURTHER FROM THE IDEAL MAN AND WOMAN INDEED SOME CONTEMPORARIES HATED HIS ART THE FANATICAL PARTY BOSS ROBERTO FARINACCI ONCE DROVE MUSSOLINI TO FIRE SIRONI FROM HIS JOB AS ART CRITIC OF THE PARTY PAPER POPOLO D'ITALIA AT THE TIME IL DUCE WHO LOVED SIRONI'S SHARP ANTIBOLSHEVIK CARTOONS DEPLORED HIS PAINTING THOSE HORRIBLE FIGURES WITH HUGE HANDS AND FEET THOSE TWISTED EYES THAT TORTURE COMMON SENSE AND ITALIAN ART IN FACT SOME ITALIAN CRITICS HAVE TRIED TO RESCUE SIRONI BY NOTING THAT MUCH OF HIS WORK FALLS SQUARELY IN THE CAMP THE NAZIS DESIGNATED AS DEGENERATE ART THAT MAY BE TRUE BUT IT DOESN'T ABSOLVE HIM OF HIS AMBIGUITIES THERE'S NO GETTING AROUND THE FACT THE MAN WAS DRAWN TO FASCISM'S PROMISE OF A RIGOROUS NEW ORDER NO MATTER HOW UNEASY THE PAINTER WAS WITH THE REGIME'S PUBLIC FACE OF BOMBAST AND TRIUMPH YET IT IS INTERESTING THAT BY EMPHASIZING SIRONI'S AMBIGUITIES TO THE HILT THIS SHOW SUCCEEDS IN DEFLATING ANY CULT ROLE FOR THE ARTIST LIKE THAT FEARED BY THE POLITICIANS IN DARMSTADT HOW DO YOU SLOT THE PAINTER OF THE MURAL CORPORATIST ITALY WHEN HE IS ALSO THE PAINTER OF THOSE SOOTY INDUSTRIAL LANDSCAPES WITH CRANES AND SMOKESTACKS THAT RIVAL DE CHIRICO'S IN THEIR MYSTERIOUS COMPOSITION AND WHAT DO HIS FINE PAINTINGS HAVE TO DO WITH THAT TERRIBLY CONVENTIONAL SACCHARINE PORTRAIT OF MARGHERITA SARFATTI THE GREAT INTELLECTUAL MUSE OF THE FASCISTS AND THOSE CRAVEN COVER DRAWINGS FOR MUSSOLINI'S POLITICAL REVIEW GERARCHIA AN ASTONISHING 1937 WORK FROM FIAT CO'S ARCHIVES IS TITLED SIMPLY LARGE PANEL WITH TRUCKS IN SATURNINE HUES OF MAROON AND BROWN THE ARTIST DEPICTS A CONVOY OF FIAT TRUCKS LOADED WITH WHAT FIRST APPEAR TO BE LUMPS OF COAL BUT ARE ACTUALLY THE CLOSELY PACKED HELMETED HEADS OF SOLDIERS ABOVE THIS PURGATORY IN ANOTHER SORT OF PURGATORY UP WHERE HEAVEN SHOULD BE THE ROMAN LEGIONS THAT SO INSPIRED MUSSOLINI FLOAT LIKE ABANDONED BALLOONS PERHAPS SIRONI'S MOST INTERESTING PERIOD IS POSTFASCISM WHEN HIS DARK DISENCHANTMENT EMERGED TO THE FULL HIS GRIM FATALISTIC CANVASES OF THE EARLY '40S REFLECT FASCISM'S DECLINE AND DOWNFALL IN THE STUNNING STATUE LYING ON THE GROUND 19421944 A WHITE FIGURE THAT COULD BE EITHER FLESH OR STONE LIES TOPPLED THE HEAD BURIED IN DARKNESS AT THE BACK OF THE COMPOSITION IN A POSE OF DEFEAT AND HUMILIATION IF THIS SHOW HAS PROVED A POPULAR SUCCESS IT IS NOT FOR THE REASONS FEARED BY THE DARMSTADT GREENS AND SOCIAL DEMOCRATS WITH ITALIAN POLITICS IN MAXIMUM FLUX IT IS MORE THE LEFT OF THE POLITICAL SPECTRUM NOT THE BURGEONING ULTRARIGHT THAT SEEMS MOST INTERESTED IN LOOKING AT SIRONI APPARENTLY ITALY'S NEOFASCISTS NOW STYLING THEMSELVES AS CONSERVATIVES NO LONGER FEEL STRONG TIES WITH THIS DIFFICULT AND CONTRADICTORY ARTIST LEAVING THE OLD ANTIFASCIST LEFT TO STUDY SIRONI WITH A MIXTURE OF CURIOSITY AND CAUTION MS RANDALL IS A WRITER IN ROME 9402220018 940217 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 9402220017 940222 GLOBAL VIEW SCORE ONE FOR RUSSIA AT SARAJEVO BY GEORGE MELLOAN BOSNIA'S SERBS WITHDREW SOME HEAVY WEAPONS AND NATO CALLED OFF THE AIR STRIKES NATO SECRETARY GENERAL MANFRED WOERNER IS PROPERLY THANKFUL THAT HE WON RELIEF FOR BADLY MAULED SARAJEVANS NATO FOR THE MOMENT IS SPARED DEEPER INVOLVEMENT THE DANGER OF LOSING FLIERS AND THE RISK OF ACCIDENTALLY BOMBING NONCOMBATANTS BUT IT IS NOT QUITE CORRECT TO CALL THE SERBIAN BACKDOWN A VICTORY FOR THE WEST WHEN THE DUST SETTLES IT MAY BE SEEN ON BALANCE AS MORE OF A WIN FOR RUSSIA AND SERBIA ONE OF THE INDICATORS OF THE POWER EQUATION DEVELOPING BEFORE SUNDAY NIGHT'S DENOUEMENT WAS THE MOOD OF BOSNIAN SERB LEADER RADOVAN KARADZIC HE WAS POSITIVELY JOYFUL AS THE DEADLINE APPROACHED FOR ALLIED WARPLANES TO START TURNING HIS ARTILLERY AND TANKS INTO MOLTEN METAL WE ARE APPROACHING PEACE IN SARAJEVO EXULTED THE MAN WHO HAS DONE SO MUCH TO KILL AND MAIM THE PEOPLE OF THAT CITY WHY THIS SUDDEN EMERGENCE OF A CHEERFUL MR KARADZIC THE ANSWER IS SIMPLE MR KARADZIC KNEW THAT THERE WOULD BE NO AIR STRIKES BECAUSE HE WAS PREPARED TO MAKE THE GESTURES THAT WOULD DISSUADE THE NATO ALLIES FROM THAT BOLD RISK HE ALSO KNEW THAT RUSSIA HAD JUST EMERGED AS A VERY IMPORTANT PLAYER IN THIS DRAMA AS NOMINALLY A PEACEMAKER BUT AS A PEACEMAKER VERY MUCH ON SERBIA'S SIDE WITH THE ARRIVAL IN SARAJEVO OF RUSSIA'S PHOTOGENIC YOUNG ENVOY VITALY CHURKIN A POWER EQUATION THAT HAD BEEN SHIFTING AGAINST THE SERBS TILTED BACK IN ITS FAVOR MR CHURKIN WENT BEFORE THE CAMERAS AND GOT THE WORLD'S ATTENTION WITH A WARNING THAT BOMBING WOULD MEAN ALLOUT WAR HE ALSO WAS ABLE TO SAY THAT 400 RUSSIAN PARATROOPERS WOULD BE BROUGHT DOWN TO SARAJEVO FROM CROATIA TO HELP KEEP THE COMBATANTS SEPARATED THE RUSSIANS WOULD WEAR BLUE BERETS AND BE UNDER FULL UN CONTROL OF COURSE MR CHURKIN'S MANEUVERS IN SARAJEVO WERE GETTING MUSCULAR BACKING FROM BORIS YELTSIN WHO WAS DEALING DIRECTLY WITH BILL CLINTON THE RUSSIANS SUMMONED A SECURITY COUNCIL MEETING JUST BEFORE THE MIDNIGHT GMT DEADLINE NO DOUBT TO BLOCK ANY REMOTE POSSIBILITY THAT THE AIR STRIKES MIGHT GO FORWARD AGAINST THEIR WISHES RUSSIA MIGHT BE SUFFERING FROM ECONOMIC AND POLITICAL DISARRAY BUT ON THE WEEKEND IT PROVED TO BE VERY MUCH BACK IN BUSINESS AT THE UNITED NATIONS AN ARENA WHERE DURING COLD WAR DAYS IT ACHIEVED FORMIDABLE INFLUENCE LOOK AT THE ARRIVAL OF THE DIPLOMATIC RUSSIAN CAVALRY FROM THE POINT OF VIEW OF MR KARADZIC AND HIS PARTNER IN CRIME IN BELGRADE SERBIAN PRESIDENT SLOBODAN MILOSEVIC CHANCES ARE NOW MUCH IMPROVED THAT THE SERBIAN FIGHTERS WILL BE ABLE TO HOLD MOST OF WHAT THEY HAVE WON THAT IS TO SAY SOME 70 OF THE TERRITORY OF BOSNIAHERZEGOVINA BEFORE THE STRONG RUSSIAN DIPLOMATIC INTERVENTION BOTH MEN HAD GOOD REASONS TO FEAR REVERSALS MR MILOSEVIC FACED A SERBIAN POPULATION GROWING INCREASINGLY MALEVOLENT AS HYPERINFLATION AND SHORTAGES BROUGHT ON BY UN SANCTIONS GRIP THE COUNTRY MR KARADZIC WAS CONFRONTING A BOSNIAN MUSLIM ARMY THAT IS GROWING IN STRENGTH HE MAY HAVE MORALE PROBLEMS AMONG HIS SERBIAN FIGHTERS AS WELL SIGNS OF DECLINING SERBIAN MORALE SUCH AS DESERTIONS OR SALES OF WEAPONS TO THE ENEMY ARE ONES THAT THE RUSSIANS WOULD BE QUICK TO RECOGNIZE THEY SUFFERED THE SAME THING AND EVENTUALLY DEFEAT IN THEIR ATTEMPTED CONQUEST OF AFGHANISTAN GIVEN RUSSIA'S SYMPATHIES THERE IS EVERY REASON TO BELIEVE THAT IT VOLUNTEERED ITS 400 SOLDIERS FOR DUTY IN SARAJEVO OUT OF FEAR THAT THE SERBS' INTERESTS ARE BEST SERVED AT THIS POINT BY SHIELDING THEM FROM THE BOSNIAN ARMY INDEED THE SERBS HAD EXPLICITLY COMPLAINED THAT IF THEY SURRENDERED THEIR HEAVY WEAPONS THEY WOULD BE AT THE MERCY OF THE BOSNIAN INFANTRY AS PAUL BEAVER OF JANE'S INFORMATION GROUP IN LONDON WROTE IN THE WALL STREET JOURNAL EUROPE JAN 27 THE BOSNIAN MUSLIMS HAVE BEEN GREATLY STRENGTHENED BY IMPROVED ORGANIZATION PROFESSIONAL CADRES FROM OTHER MUSLIM COUNTRIES AND DESPITE THE UN ARMS EMBARGO CLANDESTINE IMPORTS OF MODERN WEAPONS THE COMBINATION OF NATO AIR STRIKES AND THE GROUND MANEUVERS OF THE IMPROVED BOSNIAN ARMY MIGHT HAVE QUICKLY TILTED THE MILITARY BALANCE AGAINST THE SERBS BILL CLINTON WAS ASKED AFTER HIS RADIO ADDRESS SATURDAY WHY NATO DIDN'T TAKE A TOUGH LINE A YEAR AGO HE ANSWERED RATHER ABSENTLY THAT THERE WAS NO CONSENSUS THEN IF THERE IS A WESTERN CONSENSUS NOW IT IS PARTLY BECAUSE OF GREATER STRENGTH ON THE MUSLIM SIDE BUT NATURE AND POLITICS ABHOR A VACUUM AND THE NATO ALLIES MAY HAVE ALLOWED THE VACUUM TO LAST TOO LONG IN RUSSIA'S DECEMBER ELECTION FOREIGN POLICY HARDLINERS WERE BIG WINNERS RUSSIA IS BEGINNING TO ASSERT ITSELF ONCE MORE IT IS FINDING THAT IT NO LONGER MUST PLEAD WITH NATO TO RESPECT ITS WEAKNESS GIVEN THE DIVISION AND LACK OF DIRECTION IN NATO RUSSIA FINDS IT CAN WHEEL AND DEAL ONCE MORE TAKING ADVANTAGE OF ITS OPERATIONAL FREEDOM RUSSIA CAN DO THAT ESPECIALLY WELL IN EUROPE'S MIDSECTION IT TALKED BILL CLINTON AND HIS FRIENDS OUT OF ADMITTING THE VISEGRAD COUNTRIES POLAND THE CZECH AND SLOVAK REPUBLICS AND HUNGARY TO NATO ITS INTERVENTION ON SERBIA'S BEHALF NOW HAS THE SYMPATHY OF HUNGARY AND MOST LIKELY SILENT ADMIRERS IN OTHER SLAVIC COUNTRIES GREECE A NATO MEMBER ALSO IS NOMINALLY IN ITS CAMP OLD LEFTIST ANDREAS PAPANDREOU PULLED A POWER PLAY OF HIS OWN LAST WEEK BY TRYING TO DENY MACEDONIA A PREDOMINANTLY MUSLIM COUNTRY ACCESS TO THE SEA GIVEN THE FACT THAT NATOMEMBER TURKEY IS SYMPATHETIC TO AND MAY BE AIDING BALKAN MUSLIMS NEW DISARRAY WITHIN NATO IS POSSIBLE AS THE TRADITIONAL RIVALRY BETWEEN TURKEY AND GREECE IS FURTHER AGGRAVATED BY DIFFERENCES OVER BOSNIA TURKISH PLANES WERE POISED TO TAKE PART IN THE NATO BOMBINGS MUCH HAS BEEN SAID ABOUT THE PEACE DIVIDEND THAT WOULD RESULT FROM THE END OF THE COLD WAR BILL CLINTON APPEARS TO SEE FOREIGN POLICY AN AMERICAN PRESIDENT'S MOST IMPORTANT RESPONSIBILITY AS AN UNWANTED BOTHER OR SOMETHING THAT CAN BE CARRIED OFF WITH MERE BONHOMIE HE AND HIS EUROPEAN ALLIES ARE DISMANTLING ARMIES TO FREE UP MORE MONEY FOR THEIR WELFARE STATES WHERE'S THE THREAT IT IS OFTEN ASKED THE THREAT WE SHOULD HAVE SEEN SUNDAY COMES FROM LETTING SITUATIONS LIKE BOSNIA FESTER UNTIL THE NEIGHBORS FIND THEMSELVES CHOOSING SIDES EUROPEANS WILL REMEMBER THAT CHOOSING SIDES HAS HAPPENED BEFORE WITH TERRIBLE CONSEQUENCES IN 1914 OVER THE SAME PATCH OF GROUND IT MAY BE THAT RUSSIA AND THE WEST WILL BE ABLE TO WORK TOGETHER TO BRING THAT MUCHSOUGHT JUST AND LASTING PEACE TO THE REST OF BOSNIAHERZEGOVINA ALL OF IT TAKING PLACE UNDER THAT ALLURING RUBRIC CALLED UN PEACEKEEPING BUT IT IS NOT CLEAR THAT WHAT WAS GOING ON OVER THE WEEKEND BETWEEN RUSSIA AND THE WEST WAS COOPERATION IT LOOKED MORE LIKE CONFRONTATION PERHAPS IT'S TIME FOR THE WEST TO START ASKING WHETHER IT REALLY WANTS RUSSIA TO REESTABLISH HEGEMONY IN SLAVIC LANDS MR MELLOAN IS DEPUTY EDITOR INTERNATIONAL OF THE WALL STREET JOURNAL 9402220016 940222 MULTIFACETED CASE PRICEFIXING CHARGES PUT GE AND DE BEERS UNDER TOUGH SCRUTINY US SAYS SWAP OF INFORMATION ON INDUSTRIAL DIAMONDS WAS CRIMINAL ACTIVITY' WHISTLEBLOWER ALTERS TUNE BY WILLIAM M CARLEY AND AMAL KUMAR NAJ STAFF REPORTERS OF THE WALL STREET JOURNAL THE JUSTICE DEPARTMENT'S CRIMINAL INDICTMENT AGAINST GENERAL ELECTRIC CO AND DE BEERS CENTENARY AG FOR ALLEGED PRICE FIXING PROMISES TO BE ONE OF THE MOST FARRANGING AND HARDFOUGHT CASES IN ANTITRUST ANNALS IT IS ALSO BECOMING ONE OF THE MOST BIZARRE THE COMPANIES WERE CHARGED LAST WEEK WITH FIXING PRICES IN THE 600 MILLIONAYEAR WORLD MARKET FOR INDUSTRIAL DIAMONDS SUCH INDUSTRIAL DIAMONDS AREN'T USED IN JEWELRY BUT IN CUTTING TOOLS FOR CONSTRUCTION OIL DRILLING AND OTHER WORK THE JUSTICE DEPARTMENT COULD HAVE BROUGHT ONLY A CIVIL COMPLAINT AGAINST THE COMPANIES AS IT DID IN 1992 WHEN IT CHARGED US AIRLINES WITH FIXING AIR FARES THROUGH THEIR COMPUTER SYSTEMS BUT ONE OFFICIAL SAID THE GOVERNMENT SOUGHT THE CRIMINAL INDICTMENT BECAUSE THE GEDE BEERS CASE WAS VIEWED AS A HARDCORE ANTITRUST VIOLATION IF THERE IS A GUILTY VERDICT THERE COULD BE NOT ONLY BIG FINES FOR THE CORPORATIONS BUT ALSO JAIL TERMS FOR AN EMPLOYEE OF GE AND ONE OF A DE BEERS AFFILIATE WHO ALSO WERE INDICTED TO JACK WELCH CHAIRMAN OF GE THE CHARGES ARE OUTRAGEOUS IF GE REALLY HAS BROKEN ANY LAW HE SAID GE FIRES OFFENDING EMPLOYEES AND PLEADS GUILTY IN COURT GE DID JUST THAT TWO YEARS AGO AFTER A SALESMAN BRIBED AN ISRAELI GENERAL TO WIN ORDERS FOR JET ENGINES BUT IN THIS CASE MR WELCH SAYS GE IS INNOCENT IN AN INTERNAL MEMO MR WELCH SAID WE WILL USE ALL THE RESOURCES OF OUR COMPANY TO FIGHT THESE CHARGES AND WE WILL PREVAIL AT TRIAL DEVELOPMENTS LEADING TO THIS LEGAL CONFRONTATION ALREADY HAVE PRODUCED EXTRAORDINARY EVENTS THERE IS FOR EXAMPLE EDWARD RUSSELL A FIRED GE EXECUTIVE IT WAS HIS ALLEGATIONS OF ANTITRUST VIOLATIONS THAT STARTED THE GOVERNMENT'S INVESTIGATION BUT LAST WEEK ON THE EVE OF THE CRIMINAL INDICTMENT MR RUSSELL DROPPED HIS OWN WHISTLEBLOWER SUIT AGAINST GE SAYING HE DIDN'T HAVE ANY PERSONAL KNOWLEDGE OF PRICE FIXING THEN THERE IS THE JUSTICE DEPARTMENT'S TWOYEAR INQUIRY WHICH HAD BEEN HAMPERED BECAUSE MANY DOCUMENTS AND WITNESSES ARE OVERSEAS TO HELP GATHER EVIDENCE THE FEDERAL BUREAU OF INVESTIGATION ARRESTED ONE DE BEERS OFFICIAL WHEN HE VISITED THE US LAST YEAR THE STARTLED DE BEERS MAN WAS HUSTLED OFF TO COLUMBUS OHIO WHERE HE WAS COMPELLED TO TESTIFY BEFORE A GRAND JURY AND THERE WAS GE'S MASSIVE ATTEMPT LAST WEEK TO STAVE OFF THE INDICTMENT THE EFFORT INCLUDED LASTMINUTE TELEPHONE CALLS FROM GE HEADQUARTERS IN FAIRFIELD CONN TO WEBSTER HUBBELL ASSOCIATE ATTORNEY GENERAL TO GET HIM TO HOLD UP THE INDICTMENT ABOUT TO BE FILED BY THE ANTITRUST DIVISION AN EFFORT THAT PROVED FUTILE AS FOR DE BEERS A SPOKESMAN IN JOHANNESBURG SOUTH AFRICA REITERATED EARLIER DENIALS OF WRONGDOING ASKED WHETHER DE BEERS WHICH IS BASED IN SWITZERLAND WOULD STAND TRIAL IN OHIO THE SPOKESMAN WOULD ONLY SAY WE DON'T DO BUSINESS IN THE US THE COMPANY FAMED FOR RUNNING THE WORLDWIDE CARTEL THAT CONTROLS GEM DIAMOND PRICES HAS TRADITIONALLY SHUNNED US LEGAL PROCEEDINGS GE'S SUPERABRASIVES UNIT WHICH MAKES INDUSTRIAL DIAMONDS IS BASED IN WORTHINGTON OHIO WHEN MR RUSSELL WAS FIRED AS GE VICE PRESIDENT AND HEAD OF SUPERABRASIVES IN NOVEMBER 1991 HE SAID IT WAS BECAUSE OF HIS OBJECTIONS TO A MEETING IN LONDON BETWEEN HIS BOSS GE SENIOR VICE PRESIDENT GLEN HINER AND TOP DE BEERS OFFICIALS MR HINER NOW CHAIRMAN OF OWENSCORNING FIBERGLAS CORP HAS SAID THE MEETING WAS MERELY TO DISCUSS A TECHNOLOGY EXCHANGE MR RUSSELL CLAIMED IT WAS TO CONSPIRE ABOUT PRICES THE NEXT YEAR MR RUSSELL FILED SUIT AGAINST GE IN FEDERAL COURT IN CINCINNATI ASSERTING THAT HE WAS UNFAIRLY DISCHARGED ABOUT THE SAME TIME THE JUSTICE DEPARTMENT SUBPOENAED THOUSANDS OF DOCUMENTS FROM GE WHILE THE RUSSELL LAWSUIT'S ALLEGATIONS AGAINST MR HINER CAPTURED MOST MEDIA ATTENTION MR RUSSELL HAD ALSO FINGERED TWO MIDLEVEL OFFICIALS ONE AT GE AND ONE AT A DE BEERS AFFILIATE THESE TWO HE TOLD THE JUSTICE DEPARTMENT WERE THE MEN ACTUALLY CARRYING OUT THE ALLEGED CONSPIRACY THE INVESTIGATION BEGAN TO FOCUS ON THE PAIR LAST WEEK THE GRAND JURY INDICTED THEM BOTH GE OFFICIALS SAY THE INDICTMENT IS MISGUIDED BECAUSE DIAMANT BOART BUYS DIAMONDS FROM GE AS WELL AS FROM DE BEERS TO MAKE CUTTING TOOLS INDEED AN INTERNAL GE DOCUMENT SHOWS THAT DIAMANT BOART IS GE'S SECOND BIGGEST CUSTOMER FOR DIAMONDS BUYING ABOUT 15 MILLION A YEAR WHAT COULD BE MORE NATURAL AND LEGAL THAN FOR A GE MANAGER LIKE MR FRENZ TO PROVIDE PRICES TO A GOOD CUSTOMER SUCH AS DIAMANT BOART GE OFFICIALS ASK BUT THE INDICTMENT STATES THAT DIAMANT BOART IS OWNED BY A BELGIAN COMPANY SIBEKA WHICH IN TURN IS 20 OWNED BY DE BEERS AND IT IS THROUGH A 5050 JOINT VENTURE WITH SIBEKA THAT DE BEERS PRODUCES ITS INDUSTRIAL DIAMONDS IN SHORT THE DE BEERSSIBEKADIAMANT BOART COMPLEX IS AT ONCE ONE OF GE'S BIGGEST CUSTOMERS AND GE'S BIGGEST COMPETITOR IT WAS BY EXPLOITING THIS RELATIONSHIP THE JUSTICE DEPARTMENT SAYS THAT THE PRICEFIXING PLOT COULD BE CARRIED OUT UNDER THE GUISE OF SUPPLYING PRICE QUOTES TO A CUSTOMER GE AND DE BEERS COULD COORDINATE PRICING MOVES DATA COULD BE FUNNELED FROM GE THROUGH THE DIAMANT BOART CONDUIT TO DE BEERS AND VICE VERSA THE JUSTICE DEPARTMENT REGARDS THIS AS A SUBTERFUGE ANNE BINGAMAN CHIEF OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION SAYS THE DIVISION WILL NOT TOLERATE SOPHISTICATED SCHEMES THAT ARE USED TO FIX PRICES AND TO DISGUISE CRIMINAL ACTIVITY THE TWO COMPANIES SHE ADDED DOMINATE THE INDUSTRIALDIAMOND MARKET ACCOUNTING FOR 80 OF SALES ACCORDING TO THE INDICTMENT EVENTS UNFOLDED IN THIS SEQUENCE GE'S MR FRENZ USING A PRELIMINARY DRAFT OF A PROPOSED PRICE INCREASE HE HAD GOTTEN FROM SUPERABRASIVES HEADQUARTERS IN OHIO FAXED THE INFORMATION TO MR LIOTIER IN NOVEMBER 1991 IN MIDDECEMBER MR LIOTIER RECIPROCATED PROVIDING MR FRENZ WITH DETAILS OF DE BEERS'S PROPOSED PRICE INCREASES MR FRENZ PROMPTLY FAXED THAT BACK TO GE SUPERABRASIVES HEADQUARTERS IN OHIO DE BEERS'S PROPOSED PRICE INCREASES COVERED A BROADER RANGE OF DIAMOND PRODUCTS THAN GE'S INITIAL MOVE NOW THE QUESTION WAS WHETHER GE WOULD FOLLOW DE BEERS'S BROADER ACTION MR FRENZ RAISED THAT ISSUE IN A MEMO THAT HE SENT ALONG WITH THE DE BEERS PRICE LIST LIOTIER OF DIAMANT BOART INFORMED ME ABOUT THE PLANNED PRICE INCREASES OF DE BEERS EFFECTIVE EARLY 1992 MR FRENZ WROTE THE ATTACHED INFORMATION WAS GIVEN TO HIM CONFIDENTIALLY PLEASE TREAT THE INFORMATION CAREFULLY LIOTIER IS SUPPORTING A PRICE INCREASE AND WOULD LIKE TO KNOW BY DEC 18 1991 1800 HOURS EUROPEAN TIME WHETHER GE SUPERABRASIVES IS GOING TO FOLLOW THE NIGHT OF THE DEADLINE MESSRS FRENZ AND LIOTIER DINED TOGETHER ON JAN 6 1992 THE INDICTMENT CONTINUES MR FRENZ GOT GE SUPERABRASIVES' FORMAL ANNOUNCEMENT TO ITS SALES FORCE DETAILING THE PRICE INCREASES THE OHIO ANNOUNCEMENT HAD INTENTIONALLY OMITTED MEDIUMGRADE SAW DIAMOND CALLED MBS70 FROM THE INCREASE MR FRENZ IMMEDIATELY CALLED OHIO ASKING THAT MBS70 BE INCLUDED BECAUSE DE BEERS WAS RAISING ITS PRICE ON THE PRODUCT TWO DAYS LATER MR FRENZ GOT ANOTHER FAX FROM GE SUPERABRASIVES WITH THE FUTURE PRICES MODIFIED BY HAND TO REFLECT THE PRICE INCREASE FOR MBS70 THAT EVENING THE INDICTMENT ADDS MR FRENZ MET WITH MR LIOTIER GE ANNOUNCED ITS FIRST BATCH OF HIGHER PRICES TO CUSTOMERS AND DISTRIBUTORS JAN 20 DE BEERS FOLLOWED JAN 23 THERE IS NO DOUBT THE JUSTICE DEPARTMENT HAD PROBLEMS ASSEMBLING ITS EVIDENCE LAST YEAR IT WAS ABLE TO SNARE JAMES WHITEHEAD WHO HAS SUCCEEDED MR LIOTIER AS MANAGING DIRECTOR OF DIAMANT BOART ONLY WHEN MR WHITEHEAD VISITED THE US PARTLY TO ATTEND THE MASTERS GOLF TOURNAMENT IN AUGUSTA GA WHAT MR WHITEHEAD TOLD THE GRAND JURY IN COLUMBUS ISN'T KNOWN HE COULDN'T BE REACHED FOR COMMENT THE US ALSO HAD BELGIAN POLICE SEARCH MR LIOTIER'S OFFICE WHAT DOCUMENTS THE POLICE FOUND ISN'T KNOWN MR LIOTIER ALSO COULDN'T BE REACHED FOR COMMENT NEITHER COULD MR FRENZ HIT BY A GRAND JURY SUBPOENA GE TURNED OVER THOUSANDS OF DOCUMENTS BUT NOT ALL ACCORDING TO PRETRIAL TESTIMONY IN MR RUSSELL'S CASE HIS SUCCESSOR AS HEAD OF GE SUPERABRASIVES JOHN BLYSTONE HAD HIS SECRETARY REMOVE A FILE ON GROUNDS THAT SOME OF THEM WERE PERSONAL AS A RESULT THE FILE WASN'T TURNED OVER TO THE JUSTICE DEPARTMENT LATER WHEN THE SECRETARY DENISE MAURER GAVE A DEPOSITION SHE DISCLOSED THE EXISTENCE OF THE FILE AND SAID THE DOCUMENTS WERE ALL BUSINESS RELATED MR RUSSELL'S ATTORNEY CONTENDS THAT ONE DOCUMENT A HANDWRITTEN MEMO BY MR BLYSTONE ABOUT HIS CONVERSATION WITH SUPERABRASIVES' SALES MANAGER SUPPORTS CHARGES OF PRICE FIXING THE MEMO WAS FINALLY TURNED OVER TO THE JUSTICE DEPARTMENT LAST YEAR EIGHT MONTHS AFTER IT WAS SUBPOENAED ALL THE EVIDENCE GE SAYS DOESN'T ADD UP TO AN ANTITRUST VIOLATION YES MR FRENZ DID HAVE DINNER WITH MR LIOTIER AFTER THE GE MAN ASKED SUPERABRASIVES HEADQUARTERS TO RESPOND TO THE DE BEERS PROPOSED PRICE INCREASE BUT MR FRENZ DIDN'T GET AN ANSWER BY MEALTIME SO MESSRS FRENZ AND LIOTIER MERELY GOSSIPED AT DINNER IN ANY EVENT GE ADDS MR FRENZ DIDN'T HAVE AUTHORITY TO CHANGE PRICES WHICH COULD BE INCREASED ONLY BY OFFICIALS AT SUPERABRASIVES HEADQUARTERS IN OHIO AND THE UNIT'S OFFICIALS ACTED INDEPENDENTLY GE ADDED IN A STATEMENT THAT MR FRENZ ACTED PROPERLY UNDER ANTITRUST COMPLIANCE PRACTICES IN RECEIVING COMPETITIVE INFORMATION FROM A CUSTOMER MARKING ITS DATE AND SOURCE AND FORWARDING IT TO THE PRICINGDECISION MAKERS GE SAID MR FRENZ HAD NO PRICING AUTHORITY NO IMPROPER INTENT NO PERSONAL MOTIVE AND NO CULPABILITY WHAT'S MORE GE SAYS AFTER THE PRICE INCREASES OF EARLY 1992 GE'S AND DE BEERS'S LIST PRICES WERE EVEN FURTHER APART THAN THEY WERE BEFORE GE SPARED NO EFFORT TO HEAD OFF THE INDICTMENT ONE POTENTIAL WITNESS WHO MIGHT SUPPORT THE JUSTICE DEPARTMENT CHARGES WAS MR RUSSELL AFTER HIS TWOYEAR COURT FIGHT WITH GE HIS SUDDEN SETTLEMENT WAS STUNNING MR RUSSELL HAD BROUGHT HIS SUIT UNDER OHIO'S WHISTLEBLOWER STATUTE WHICH REQUIRED HIM TO PROVE HE WAS FIRED BECAUSE HE WAS TRYING TO EXPOSE WHAT HE BELIEVED WAS A CONSPIRACY IN THE SETTLEMENT MR RUSSELL REVERSED HIMSELF SAYING HE WAS CONVINCED BY THE EVIDENCE THAT MR WELCH HAD FIRED HIM BECAUSE GE'S CHAIRMAN CONSIDERED HIM A POOR PERFORMER EVENTS CULMINATED LAST WEEK ACCORDING TO PERSONS FAMILIAR WITH THE CASE AN ANTITRUSTDIVISION OFFICIAL CALLED GE LAST MONDAY TO SAY THAT IT WOULD BE INDICTED THURSDAY THE LAST DAY THE JUSTICE DEPARTMENT BELIEVED THAT THE GRAND JURY IN COLUMBUS COULD ACT BEN HEINEMAN GE'S GENERAL COUNSEL TELEPHONED MR HUBBELL AT THE JUSTICE DEPARTMENT ASKING HIM TO HOLD UP THE INDICTMENT BECAUSE IT WOULD PREJUDICE THE COMING RUSSELL TRIAL MR HUBBELL SAID HE WOULD CONSIDER THE MATTER ON WEDNESDAY JUDGE HERMAN WEBER WHO WAS PRESIDING OVER MR RUSSELL'S LAWSUIT CALLED THE PARTIES TO HIS OFFICE IN CINCINNATI TO SEE IF THE CASE COULD BE SETTLED BEFORE TRIAL IN THE JUDGE'S OFFICE WERE MR RUSSELL AND HIS LAWYER AND MR WELCH AND A GE LAWYER THE OUTCOME GE WOULD PAY AN UNDISCLOSED PORTION OF MR RUSSELL'S LEGAL FEES WHICH ARE ESTIMATED BY OUTSIDE LAWYERS AT ROUGHLY 2 MILLION IN ADDITION GE WOULD GIVE MR RUSSELL A GE RETIRED OFFICER'S MEDICAL AND INSURANCE BENEFITS A COMPANY SPOKESWOMAN JOYCE HERGENHAN VICE PRESIDENT FOR PUBLIC RELATIONS SAYS GE'S COST FOR MR RUSSELL'S PACKAGE OF BENEFITS IS LESS THAN 250000 FOR HIS PART MR RUSSELL SIGNED A STATEMENT THAT HE HADN'T ANY PERSONAL KNOWLEDGE OF ANTITRUST VIOLATIONS SUDDENLY MR RUSSELL'S VALUE AS A POTENTIAL WITNESS AGAINST GE IN THE GOVERNMENT'S CRIMINAL CASE HAD BEEN SEVERELY DAMAGED GE LAWYERS STILL TRYING TO HEAD OFF THE INDICTMENT FAXED THE RUSSELL STATEMENT TO THE JUSTICE DEPARTMENT LATE WEDNESDAY TO MAKE SURE TOP JUSTICE OFFICIALS READ ABOUT IT MS HERGENHAN CALLED REPORTERS AT THE WALL STREET JOURNAL AND THE WASHINGTON POST TO PROVIDE A STATEMENT ABOUT MR RUSSELL'S APPARENT CAPITULATION THE JOURNAL RAN THE STORY THURSDAY MORNING THE POST DELAYED UNTIL FRIDAY A JUSTICE DEPARTMENT SPOKESWOMAN GINA TALAMONA SAYS THE RUSSELL SETTLEMENT WON'T HAVE ANY IMPACT ON THE GOVERNMENT'S CASE ON THURSDAY MORNING MR HEINEMAN PHONED MR HUBBELL AGAIN THIS TIME MR HEINEMAN REQUESTED THAT THE INDICTMENT BE DELAYED AND REVIEWED BY THE ASSOCIATE ATTORNEY GENERAL HIMSELF MR HUBBELL REFERRED THE GE LAWYER TO MS BINGAMAN THE ANTITRUSTDIVISION CHIEF BUT SHE HAD GONE OUT TO DELIVER A SPEECH WHEN MS BINGAMAN RETURNED MR HEINEMAN'S CALL ABOUT 4 PM THURSDAY SHE TOLD THE GE LAWYER THE INDICTMENT HAD BEEN FILED MINUTES BEFORE 9402220015 940222 BUSINESS BRIEF FORD MOTOR CO TWO RECALLS ARE PLANNED AFFECTING 416400 VEHICLES FORD MOTOR CO SAID IT IS RECALLING 416400 OF ITS 1992 1993 AND 1994 MODEL CARS AND TRUCKS FOR TWO SEPARATE PROBLEMS IN THE FIRST ACTION FORD IS RECALLING 400000 OF ITS 1993 AND 1994 FSERIES TRUCKS AND BRONCO SPORTUTILITY VEHICLES BECAUSE NUTS THAT ATTACH THE VEHICLES' FRONT BUMPERS MIGHT FRACTURE UNDER NORMAL OPERATING CONDITIONS IF SUCH A BREAK OCCURS THE FRONT BUMPER MIGHT LOOSEN RATTLE OR SEPARATE FROM THE FRAME IN THE SECOND ACTION FORD IS RECALLING 16400 OF ITS 1992 AND 1993 MODEL CROWN VICTORIA POLICE FLEET AND TAXI VEHICLES EQUIPPED WITH MANUAL FRONT SEATS AND RUBBER FLOOR MATS FORD SAID POWERSEAT WIRING CONNECTORS UNDER THE FRONT SEATS MIGHT TOUCH THE FLOOR AND BE EXPOSED TO WATER AND ROAD SALT BROUGHT INTO THE CAR BY OCCUPANTS PROLONGED EXPOSURE TO SALT WATER COULD CORRODE THE WIRING AND CAUSE A SHORT WHICH COULD LEAD TO A FIRE FORD DEARBORN MICH SAID IT ISN'T AWARE OF ANY ACCIDENTS OR INJURIES RELATED TO EITHER PROBLEM 9402220014 940222 BUSINESS BRIEF TRANSCANADA PIPELINES LTD GAS DELIVERIES IN JANUARY SET RECORDS COMPANY SAYS TRANSCANADA PIPELINES LTD SAID IT SET RECORDS FOR GAS DELIVERIES IN JANUARY IN CANADIAN AND US MARKET AREAS IT SERVES TRANSCANADA'S SYSTEM DELIVERIES AVERAGED 73 BILLION CUBIC FEET OF NATURAL GAS A DAY IN JANUARY UP 17 FROM A YEAR EARLIER THE COMPANY SAID ON JAN 18 TRANSCANADA DELIVERED A SINGLEDAY RECORD OF 79 BILLION CUBIC FEET OF WHICH DOMESTIC MARKETS TOOK A RECORD 45 BILLION CUBIC FEET IT ADDED THREE DAYS LATER A RECORD 35 BILLION CUBIC FEET OF GAS WAS DELIVERED TO US MARKETS IN EASTERN CANADIAN MARKETS THE CALGARY ALBERTA CONCERN DELIVERED 1265 BILLION CUBIC FEET DURING THE MONTH 292 BILLION CUBIC FEET GREATER THAN FIRMSERVICE OBLIGATIONS JANUARY DELIVERIES TO US MARKETS WERE 989 BILLION CUBIC FEET 74 BILLION CUBIC FEET MORE THAN FIRMSERVICE OBLIGATIONS THE OIL AND GAS EXPLORATION CONCERN SAID 9402220013 940222 SERBS GIVE UP HEAVY ARTILLERY AROUND SARAJEVO THREAT OF AIR STRIKES ABATES BUT US FACES PRESSURE TO TAKE ACTION IN BOSNIA BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BOSNIA'S SERBS WITHDREW OR GAVE UP NEARLY ALL OF THEIR BIG GUNS FROM THE HILLS SURROUNDING SARAJEVO ENDING THE THREAT OF IMMEDIATE AIR STRIKES BUT THE DEMANDS FOR DEEPER US DIPLOMATIC AND MILITARY INVOLVEMENT IN BOSNIA WILL ONLY GROW THE US AND ITS ALLIES WILL HAVE TO DECIDE WHETHER TO EXTEND THEIR AIRSTRIKE ULTIMATUM TO BOSNIA'S OTHER KILLING FIELDS WHILE FRANCE AND SEVERAL OTHER EUROPEAN GOVERNMENTS HAVE ENDORSED THE IDEA US OFFICIALS WARNED YESTERDAY THAT PEACEKEEPING TROOPS IN BOSNIA ALREADY ARE DANGEROUSLY OVEREXTENDED BUT IF THE SERBS TURN SOME OF THE ESTIMATED 250 HEAVY WEAPONS THEY RETRIEVED FROM SARAJEVO LAST WEEKEND AGAINST OTHER BESIEGED TOWNS THE DEMANDS FOR WESTERN RETALIATION WILL BE HARD TO RESIST US OFFICIALS ARE HOPING TO SHIFT THEIR FOCUS TO DIPLOMATIC EFFORTS TO END THE WAR PRESENTING ANOTHER POTENTIAL AREA OF DISAGREEMENT AMONG WESTERN ALLIES EVEN REACHING A PEACE SETTLEMENT WOULD HAVE A HIGH MILITARY COST ATTACHED ONE THAT HAS YET TO REGISTER WITH THE AMERICAN PUBLIC US OFFICIALS SAY THAT BOSNIA'S MUSLIMLED GOVERNMENT WILL NEVER SIGN A PEACE SETTLEMENT WITHOUT SOLID SECURITY GUARANTEES FOREMOST AMONG THEM THE PROMISE OF A LARGE NUMBER OF US GROUND TROOPS THAT IS THE COST OF DOING PEACE SAID A SENIOR US OFFICIAL ADDING IT JUST HASN'T SUNK IN TO THE AMERICAN PEOPLE YET SPEAKING TO REPORTERS YESTERDAY PRESIDENT CLINTON SAID THAT HE HAD LONG BEEN COMMITTED TO SENDING PEACEKEEPERS TO BOSNIA PROVIDED ALL SIDES FREELY ACCEPTED A PEACE AGREEMENT AND AS LONG AS WE HAD FEWER THAN HALF OF THE TROOPS THERE IN FACT MR CLINTON AND HIS AIDES GIRDING FOR A TOUGH POLITICAL FIGHT AT HOME HAVE BEEN TRYING TO DOWNSIZE AN EARLIER PROMISE TO PROVIDE HALF OF A NORTH ATLANTIC TREATY ORGANIZATION PEACEKEEPING FORCE FLOATING THE IDEA OF ONETHIRD OF THE OVERALL TROOPS AND SETTLING ON THE PRESIDENT'S SAFELY NONSPECIFIC FEWER THAN A HALF WE JUST DON'T WANT TO GIVE CONGRESS THE IMPRESSION THAT WE'RE CARRYING THE BIGGEST LOAD ANOTHER US OFFICIAL SAID WHILE WHITE HOUSE PLANNERS DEBATE THEIR PUBLICRELATIONS STRATEGY PENTAGON PLANNERS ARE TRYING TO FIGURE OUT JUST HOW MANY SOLDIERS WILL BE NEEDED TO KEEP THE PEACE SAFELY US OFFICIALS SAY THAT AN ORIGINAL NATO ESTIMATE OF 50000 TO 60000 TROOPS HALF OF THEM AMERICANS APPLIED TO AN EARLIER PEACE MAP AND NOT THE CURRENT THREEWAY PARTITION PLAN AND OFFICIALS SAY THAT IF WASHINGTON'S EFFORTS TO ENCOURAGE A CONFEDERATION BETWEEN BOSNIAN CROATS AND MUSLIMS SUCCEED THE NUMBERS COULD DECLINE FURTHER NATO PLANNERS HOWEVER SAY THEY STILL WOULD LIKE TO SEE AROUND 25000 US TROOPS IN BOSNIA US OFFICIALS MEANWHILE EXPRESSED STRONG DOUBTS ABOUT EXTENDING NATO'S AIRSTRIKE ULTIMATUM TO OTHER SAFE AREAS PRESIDENT CLINTON SAID IT WAS IMPORTANT THAT NATO NOT UNDERTAKE ANY MISSION IT IS NOT FULLY CAPABLE OF PERFORMING PRIVATELY US OFFICIALS WARNED THAT THERE SIMPLY AREN'T ENOUGH UNITED NATIONS TROOPS ON THE GROUND TO MONITOR WEAPONS CACHES AND SEPARATE THE WARRING PARTIES IT'S A LABORINTENSIVE ACTIVITY WARNED A WHITE HOUSE OFFICIAL INSTEAD US OFFICIALS ARE HOPING THAT A MIXTURE OF DIPLOMACY AND THREATS WILL RESTRAIN THE SERBS HOPING TO ENLIST THE RUSSIANS IN THAT CAUSE DEFENSE SECRETARY WILLIAM PERRY TOLD REPORTERS THAT HE HAD TOLD HIS RUSSIAN COUNTERPART GEN PAVEL GRACHEV THAT IT WOULD BE A STEP BACKWARD FOR PEACE IF THE REMOVED ARTILLERY PIECES WERE USED TO SHELL OTHER CITIES GEN GRACHEV POINTEDLY REPLIED THAT US GROUND TROOPS WOULD ENHANCE PEACE EFFORTS CONSIDERABLY BUT IF THE SERBS PROVE RECALCITRANT US OFFICIALS SAY THAT THE AIRSTRIKE STRATEGY STILL COULD BE USED TO FORCE OPEN THE AIRPORT AT TUZLA AND TO RELIEVE CANADIAN PEACEKEEPERS IN THE EASTERN ENCLAVE OF SREBRENICA THE UN PLANS TO REOPEN TUZLA AIRPORT BY MARCH 7 THE AIRPORT IS ESSENTIAL FOR BRINGING RELIEF TO THOUSANDS OF STARVING BOSNIANS IN THE CENTER OF THE COUNTRY AS PART OF THE DIPLOMATIC EFFORT THE US IS EXPECTED TO PRESS THE MUSLIMS HARD IN COMING DAYS TO COME UP WITH A BOTTOMLINE PEACE PROPOSAL IN WASHINGTON YESTERDAY SECRETARY OF STATE WARREN CHRISTOPHER DISCUSSED MUSLIM TERMS WITH BOSNIAN PRIME MINISTER HARIS SILADJIC US EUROPEAN AND RUSSIAN OFFICIALS WILL MEET TODAY IN BONN TO DISCUSS A JOINT APPROACH TO THE NEGOTIATIONS WHILE THE US AND EUROPEAN OFFICIALS CLEARLY DIFFER OVER WHERE TO GO WITH THE NEGOTIATIONS RELATIONS WITH THE RUSSIANS ARE EVEN MORE TENSE MR CHRISTOPHER SPEAKING ON TELEVISION'S MACNEIL/LEHRER NEWSHOUR LAST NIGHT WARNED THAT RUSSIAN PEACEKEEPERS IN BOSNIA WOULD ACT PROFESSIONALLY OR THEY WON'T BE DOING THEIR JOB VERY LONG US OFFICIALS SAY THEY SEE THREE DIFFICULT AREAS FOR NEGOTIATION THE ECONOMIC VIABILITY OF A RUMP BOSNIAN STATE BOSNIAN ACCESS TO THE SAVA RIVER AND THE ADRIATIC SEA AND WHETHER SARAJEVO SHOULD BE ETHNICALLY PARTITIONED AN IDEA REJECTED BY BOSNIA'S MUSLIMLED GOVERNMENT THE ISSUE OF SARAJEVO'S FUTURE APPEARED TO GET MORE COMPLICATED YESTERDAY WHEN FRENCH PRESIDENT FRANCOIS MITTERRAND CALLED FOR THE BOSNIAN CAPITAL TO BE PLACED UNDER UN CONTROL AN IDEA ORIGINALLY CHAMPIONED BY THE RUSSIANS US AND MUSLIM OFFICIALS ARE EXPECTED TO OPPOSE THE IDEA OF A SEPARATE PEACE FOR SARAJEVO WHICH COULD ROB MOMENTUM FROM THE BROADER PEACE EFFORT AS WELL AS OPEN THE DOOR FOR AN ETHNIC PARTITION THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9402220012 940222 MARIETTA SAYS IT WON'T BUY MISSILE LINE OF GENERAL DYNAMICS UNLESS US HELPS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP CHAIRMAN NORMAN AUGUSTINE SAID THE COMPANY WILL WALK AWAY FROM A PLANNED 2085 MILLION PURCHASE OF GENERAL DYNAMICS CORP'S SPACELAUNCH BUSINESS IF THE GOVERNMENT DOESN'T AGREE TO PAY MORE FOR THOSE SERVICES MARTIN MARIETTA IS ASKING THE GOVERNMENT FOR A PORTION OF THE MORE THAN 400 MILLION IN SAVINGS IT ANTICIPATES THAT THE GOVERNMENT COULD REALIZE OVER 10 YEARS AS A RESULT OF MARTIN MARIETTA MERGING ITS TITAN IV HEAVYLAUNCH ROCKET BUSINESS WITH GENERAL DYNAMICS' MEDIUMLIFT ATLASCENTAUR SYSTEM THE COMPANIES AGREED TO THE SALE LATE LAST YEAR BUT A FORMAL SALE DOCUMENT ISN'T TO BE SIGNED UNTIL APRIL 30 AT THE LATEST ANTITRUST REGULATORY APPROVALS ARE EXPECTED NEXT MONTH MOST OF THE GOVERNMENT'S SAVINGS WILL EMERGE IN THE TITAN PROGRAM WHICH IS USED FOR LAUNCHES OF DEFENSE SATELLITES MARTIN MARIETTA SAID THE COMPANY BASED IN BETHESDA MD WANTS THE PENTAGON TO AGREE TO PAY MORE FOR LAUNCHES AND RELATED SERVICES A PENTAGON SPOKESMAN COULDN'T BE REACHED FOR COMMENT YESTERDAY MR AUGUSTINE SAID HIS PROPOSAL HASN'T BEEN PRESENTED AS A THREAT AND IS BEING STUDIED CAREFULLY BY THE DEFENSE DEPARTMENT ALTHOUGH IT ISN'T CLEAR WHEN THAT REVIEW WILL BE COMPLETE WITHOUT THE NEW PAYMENT TERMS HE SAID THE ACQUISITION DOESN'T MAKE FINANCIAL SENSE IF WE CAN'T REALIZE THIS SAVINGS THEN WE HAVE PLACES THAT WE CAN BETTER INVEST OUR SHAREHOLDERS' MONEY GENERAL DYNAMICS BASED IN FALLS CHURCH VA WOULD GET A 10 MILLION PAYMENT FROM MARTIN MARIETTA IF THE SALE ISN'T COMPLETED WE'RE IN GOOD SHAPE EITHER WAY SAID A GENERAL DYNAMICS SPOKESMAN HOWEVER IF THE DEAL UNRAVELS GENERAL DYNAMICS WOULD RETAIN A HARDTOSELL UNIT FACED WITH INTENSE FOREIGN COMPETITION PARTICULARLY FROM EUROPEAN RUSSIAN AND CHINESE ROCKETS WHILE THE GENERAL DYNAMICS OPERATION BROKE EVEN IN LAST YEAR'S FOURTH QUARTER IT HAD A LOSS OF ABOUT 39 MILLION FOR ALL OF 1993 AND HAS POSTED LOSSES OF NEARLY 600 MILLION SINCE 1988 LIKE THE COMPANIES THE FEDERAL GOVERNMENT HAS REASONS TO HOPE THE SALE AGREEMENT IS MADE FINAL THE ATLASCENTAUR PROGRAM WHICH PROVIDES BOTH GOVERNMENT AND COMMERCIAL LAUNCHES REPRESENTS THE NATION'S MAIN MEDIUMLIFT LAUNCH SERVICE AND THE MERGER APPEARS TO BE AN OBVIOUS WAY TO CUT COSTS THE TITAN PROGRAM WHICH ORIGINALLY INCLUDED 41 LAUNCHES AT A COST OF 118 BILLION HAS ABOUT 24 BILLION IN LAUNCHES AND SERVICES TO BE DELIVERED THROUGH THE YEAR 2002 HOWEVER AN ADDED 2 BILLION IN FUNDING WILL BE NEEDED TO COMPLETE THE CONTRACTS MARTIN MARIETTA OFFICIALS SAID THE ATLASCENTAUR SYSTEM HAS CONTRACTS FOR ANOTHER 31 LAUNCHES INCLUDING SEVEN PAYLOADS FOR THE AIR FORCE ITS OTHER CONTRACTS INCLUDE LAUNCHES FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION GENERAL DYNAMICS ALSO HOLDS CONTRACTS TO PRODUCE 15 CENTAUR BOOSTERS FOR USE ON TITAN ROCKETS A GENERAL DYNAMICS SPOKESWOMAN SAID IF THE MERGER PROCEEDS MARTIN MARIETTA WOULD LOOK FOR WAYS TO MAKE THE TWO OPERATIONS MORE EFFICIENT INCLUDING JOB CUTS AND TRANFERRING WORK BETWEEN GENERAL DYNAMICS PLANTS IN CALIFORNIA AND MARTIN MARIETTA HOLDINGS IN COLORADO 9402220011 940222 BUSINESS BRIEF ARABIAN OIL CO OFFSHORE VIETNAM TEST WELL ABANDONED AFTER GAS IS HIT JAPAN'S ARABIAN OIL CO AND TEIKOKU OIL CO HAVE ABANDONED THE NO 2 TEST WELL IN THEIR OFFSHORE VIETNAM CONCESSION AFTER HITTING GAS AN OFFICIAL AT ARABIAN OIL IN TOKYO SAID THE PARTNERS ARE PLANNING TO RETURN TO THEIR FIRST TEST WELL IN THE SAME EXPLORATION BLOCK WHICH HAD ALSO BEEN PUT ON HOLD AFTER FINDING GAS RESERVES THE COMPANIES PLAN TO DIG SIDETRACK WELLS OFF THE NO 1 WELL TO CONTINUE THEIR SEARCH FOR OIL DEPOSITS HE SAID THE CONSORTIUM ISN'T CURRENTLY CONSIDERING DEVELOPING THE NATURAL GAS RESERVES THAT WERE FOUND SAYING THAT THEIR BASIC MISSION IS TO SEARCH FOR CRUDE OIL THE RIGHTS TO THE 053 EXPLORATION BLOCK LYING JUST TO THE SOUTH OF THE PROMISING DAI HUNG OR BIG BEAR OIL FIELD IS 55 OWNED BY ARABIAN OIL AND 45 BY TEIKOKU OIL MOBIL CORP OF THE US HAS A FARMIN CONTRACT WITH ARABIAN OIL FOR 25 OF THE BLOCK THOUGH THE TRANSFER HASN'T BEEN COMPLETED YET AS THE US HAS ONLY RECENTLY LIFTED ITS EMBARGO AGAINST VIETNAM THE ARABIAN OIL OFFICIAL SAID 9402220010 940222 CADILLAC FAIRVIEW SEEKS TO RESTRUCTURE DEBT AS PROPERTY HOLDINGS DETERIORATE BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CADILLAC FAIRVIEW INC A REALESTATE CONCERN THAT IS CLOSELY HELD BY A GROUP OF MAINLY US PENSION FUNDS SAID IT IS NEGOTIATING TO RESTRUCTURE ABOUT ONE BILLION CANADIAN DOLLARS US748 MILLION OF DEBT BECAUSE OF A FURTHER DETERIORATION IN THE VALUE OF ITS PROPERTY HOLDINGS CADILLAC FAIRVIEW SAID IT PRESENTED A RESTRUCTURING PLAN TO ITS BANKERS AND SHAREHOLDERS THAT WOULD REDUCE THE COMPANY'S DEBT IN RELATION TO THE VALUE OF ITS ASSETS AS PART OF THE RESTRUCTURING PACKAGE DETAILS OF WHICH WEREN'T DISCLOSED THE TORONTO COMPANY SAID IT IS CONSIDERING RAISING NEW EQUITY SELLING NONSTRATEGIC ASSETS AND OFFERING SHARES TO THE PUBLIC ANALYSTS SAID CADILLAC FAIRVIEW MIGHT WELL HAVE TO TAP PUBLIC MARKETS OR OUTSIDE INVESTORS IF IT WANTS TO RAISE ADDITIONAL EQUITY CAPITAL THEY POINTED OUT THAT CADILLAC FAIRVIEW RAN INTO RESISTANCE FROM ITS EXISTING INSTITUTIONAL SHAREHOLDERS WHEN IT TAPPED THEM FOR ADDITIONAL FUNDS IN 1992 WE'RE STILL AT THE VERY EARLY STAGES OF THE RESTRUCTURING A CADILLAC FAIRVIEW SPOKESMAN SAID HE SAID THAT THE COMPANY CURRENTLY IS MEETING ALL THE INTEREST PAYMENTS ON ITS DEBT HOWEVER THE COMPANY IS IN VIOLATION OF CERTAIN COVENANTS OF THE LOAN AGREEMENT THAT LIMITED ITS DEBT TO AT MOST 75 OF THE VALUE OF ITS PROPERTY ASSETS THE SPOKESMAN SAID THE DEBT OWED TO A CONSORTIUM OF 41 BANKS STEMS FROM THE PURCHASE OF CADILLAC FAIRVIEW FOR ABOUT US2 BILLION IN 1987 BY A GROUP OF INSTITUTIONS LED BY JMB REALTY CORP OF CHICAGO THE DEBT WHICH MATURES IN 1997 AND PAYS INTEREST OF 1125 ANNUALLY IS SECURED BY CADILLAC FAIRVIEW'S OWNERSHIP INTEREST IN VARIOUS PROPERTIES CADILLAC FAIRVIEW WITH INTERESTS IN MORE THAN 44 MILLION SQUARE FEET OF REAL ESTATE HOLDS MAINLY A LARGE PORTFOLIO OF SHOPPING CENTERS IN TORONTO ATLANTA AND OTHER NORTH AMERICAN CITIES IT ALSO OWNS MAJOR OFFICE TOWERS INCLUDING THE TORONTODOMINION CENTRE AND VANCOUVER'S PACIFIC CENTRE CADILLAC FAIRVIEW ALSO HAS C22 BILLION OF DEBT WHICH IS DIRECTLY SECURED BY ITS VARIOUS PROPERTIES THAT IS NOT AFFECTED BY THE PROPOSED RESTRUCTURING OVER THE PAST FEW MONTHS CADILLAC FAIRVIEW HAS CONDUCTED AN EXHAUSTIVE REVIEW OF ITS OPERATIONS IN LIGHT OF THE CURRENT ENVIRONMENT FOR REAL ESTATE IN NORTH AMERICA SAID COMPANY PRESIDENT GRAEME EADIE THE GENERAL DECLINE IN VALUES THAT HAS OCCURRED FOR ALL TYPES OF REAL ESTATE AND SHIFTING CAPITAL MARKETS REQUIRES CADILLAC FAIRVIEW TO EXPLORE RESTRUCTURING ALTERNATIVES ANALYSTS HAVE FOR SOME TIME FLAGGED THE CADILLAC FAIRVIEW BANK DEBT AS A POSSIBLE SOURCE OF FINANCIAL TROUBLE FOR THE COMPANY TORONTO'S DOMINION BOND RATING SERVICE ALMOST A YEAR AGO DROPPED ITS RATING ON THE DEBT BY THREE NOTCHES TO TRIPLEB BECAUSE OF CONCERN THAT THE COMPANY COULD HAVE TROUBLE REPAYING THE OBLIGATION THAT WAS QUITE A SEVERE DOWNGRADE THAT DEBT IS WHAT WE'RE WORRIED ABOUT SAID DOUGLAS SAWCHUK AN ANALYST AT DOMINION BOND RATING 9402220009 940222 BUSINESS BRIEF MR COFFEE INC NET ROSE 68 IN 4TH PERIOD COST CUTS CONTROLS CITED MR COFFEE INC SAID COSTCUTTING AND EXPENSE CONTROL LED TO A 68 INCREASE IN FOURTHQUARTER NET INCOME DESPITE A SLIGHT DIP IN SALES FOR THE QUARTER ENDED DEC 26 1993 THE MAKER OF AUTOMATIC DRIP COFFEE MACHINES REPORTED NET INCOME OF 38 MILLION OR 46 CENTS A SHARE VS NET OF 23 MILLION OR 27 CENTS A SHARE A YEAR EARLIER REVENUE DECLINED 42 TO 620 MILLION FROM 648 MILLION THE CLEVELAND COMPANY ADDED THAT IT HAS RETIRED THE LAST OF ITS HIGHRATE DEBT AND GAINED MARKET SHARE IN ITS AUTOMATIC DRIP COFFEEMAKER SEGMENT FOR THE YEAR MR COFFEE REPORTED NET INCOME OF 55 MILLION OR 66 CENTS A SHARE UP 46 FROM 37 MILLION OR 45 CENTS A SHARE IN 1992 REVENUE INCREASED 36 TO 175 MILLION THE FULLYEAR 1993 EARNINGS INCLUDED A 12 MILLION OR 15CENTASHARE EXTRAORDINARY CHARGE RELATED TO EARLY EXTINGUISHMENT OF DEBT ON THE NASDAQ STOCK MARKET FRIDAY MR COFFEE CLOSED AT 14125 UP 25 CENTS 9402220008 940222 BUSINESS BRIEF GENERAL MOTORS CORP AUTO MAKER AGREES TO SELL AXLE SHAFT AND FORGE PLANTS GENERAL MOTORS CORP CONTINUING ITS EFFICIENCY DRIVE AGREED TO SELL FIVE OF ITS AXLE PROPELLER SHAFT AND FORGE MANUFACTURING PLANTS TO AMERICAN AXLE & MANUFACTURING INC EFFECTIVE FEB 28 TERMS WEREN'T DISCLOSED GM LAST YEAR ANNOUNCED ITS INTENTION TO SELL ITS AXLE SHAFT AND FORGE BUSINESS THE SALE IS PART OF THE DETROITBASED COMPANY'S STRATEGY TO STREAMLINE ITS AUTOMOTIVE COMPONENTS GROUP WORLDWIDE ONCE ONE OF GM'S WORSTPERFORMING BUSINESS UNITS WE'RE NOW IN A POSITION TO CONCENTRATE ON GROWING OUR CORE BUSINESSES STEERING SYSTEMS AND COMPONENTS AND FRONTDRIVE AXLES SAID DONALD L RUNKLE VICE PRESIDENT AND GENERAL MANAGER OF GM'S SAGINAW DIVISION THE AUTO MAKER ALSO HAS ANNOUNCED IT WILL SELL THREE PLANTS FROM ITS DELCO REMY DIVISION THAT MAKE STARTER MOTORS 9402220007 940222 MARKETING BRIEF NOTED TELEVISION PARAMOUNT COMMUNICATIONS INC SAID WTOGTV A TV STATION IN TAMPA FLA WILL JOIN PARAMOUNT NETWORK AS AN AFFILIATE THE FIFTH TV NETWORK TO BE LAUNCHED IN JANUARY 1995 IS JOINTLY OWNED AND OPERATED BY PARAMOUNT COMMUNICATIONS AND CHRISCRAFT INDUSTRIES INC THE NETWORK NOW HAS 26 AFFILIATES 9402220006 940222 BUSINESS BRIEF BENETTON GROUP SPA JOINT VENTURE WITH TIMEX JUNGHANS UHREN IS PLANNED ITALY'S BENETTON GROUP SPA SAID IT REACHED AN AGREEMENT WITH TIMEX USA AND JUNGHANS UHREN GMBH TO FORM A COMPANY TO CREATE PRODUCE AND DISTRIBUTE WORLDWIDE A LINE OF WRISTWATCHES AND CLOCKS UNDER THE BENETTON TRADEMARK BENETTON SAID THE LINE WILL INCLUDE WATERRESISTANT QUARTZ ANALOG WATCHES AND CHRONOGRAPH WATCHES AND IS EXPECTED TO BE LAUNCHED IN THE FALL RETAIL PRICES WILL RANGE FROM 60 TO 120 IT SAID IN THE NEW COMPANY TIMEX WILL BE RESPONSIBLE FOR THE PRODUCTION OF QUARTZ ANALOG WATCHES AND THE DISTRIBUTION OF ALL BENETTON BRAND WATCHES IN NORTH AMERICA AND ASIA JUNGHANS WILL MANUFACTURE ALL BENETTON BRAND CLOCKS AND WILL HANDLE THE MARKETING AND SALES OF THE NEW COMPANY'S PRODUCTS IN EUROPE THE COMMONWEALTH OF INDEPENDENT STATES AFRICA THE MIDDLE EAST SOUTH AMERICA AND NEW ZEALAND 9402220005 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 ANY ONE 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 STOM ACHS 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 FA MOUS 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 9402220004 940222 LEISURE & ARTS BUSINESS BOOKSHELF CUNEIFORM TO CHILD CARE BY STANLEY W ANGRIST THE FIRST EVIDENCE OF OUR ABILITY TO WRITE COMES FROM LOWER MESOPOTAMIA IN WHAT IS NOW SOUTHERN IRAQ PROTOCUNEIFORM WRITING ON CLAY TABLETS THAT HAVE BEEN DATED FROM BETWEEN 3500 BC AND 2800 BC BUT DID THESE PEOPLE AROUND THE CITY OF URUK WRITE ABOUT EPIC BATTLES AND THEIR BRAVE RESOURCEFUL HEROES AND HEROINES PERHAPS BUT THAT IS NOT WHAT HAS SURVIVED WHAT WE HAVE ARE THEIR GENERAL LEDGERS SHOWING WHAT IT COST TO BREW THEIR BEER AND BAKE THEIR BREAD IN MATERIALS AND IN LABOR FIVE THOUSAND YEARS HENCE WILL OUR DESCENDANTS HAVE ONLY OUR STOCK AND OPTION QUOTATIONS FOR LEARNED SCHOLARS TO GUESS AT HOW WE LIVED I HOPE NOT BUT ARCHAIC BOOKKEEPING UNIVERSITY OF CHICAGO PRESS 169 PAGES 3495 BY HANS J NISSEN PETER DAMEROW AND ROBERT K ENGLUND WITH PETER LARSEN TRANSLATING FROM THE GERMAN DOES OFFER SOME NICE INSIGHTS INTO LIFE BACK THEN BOOKKEEPERS USED DEBITS AND CREDITS MUCH AS WE USE THEM TODAY THE COST OF THE FLOUR PRODUCED BY A GIVEN MILL WAS TRANSLATED INTO FEMALE LABORER DAYS FOREMEN WERE RESPONSIBLE DOWN TO THE DAY FOR THE WORK DONE BY THEIR CREWS IF A FOREMAN DIED WHILE HE WAS IN A DEFICIT POSITION HIS WORLDLY GOODS COULD BE CONFISCATED BY THE STATE AND THE MEMBERS OF HIS HOUSEHOLD TRANSFERRED INTO THE ROYAL LABOR FORCE APPARENTLY WORKING FOR THE STATE WAS NO PICNIC THE TABLETS REPORT REGULARLY ON ESCAPES BOTH SUCCESSFUL AND FOILED WOMEN ARE IN THE WORK FORCE IN RECORD NUMBERS AND MANY ARE OR WILL BECOME MOTHERS WITHOUT DROPPING OUT OF THE LABOR MARKET ANNE WEISBERG AND CAROL BUCKLER BOTH LAWYERMOTHERS ADDRESS NEARLY EVERY PROBLEM YOU MIGHT FACE IN EVERYTHING A WORKING MOTHER NEEDS TO KNOW DOUBLEDAY 235 PAGES 1495 STARTING WITH WHEN A WOMAN SHOULD ANNOUNCE HER PREGNANCY THEY SUGGEST WAITING UNTIL THE SECOND TRIMESTER BECAUSE SOME SUBTLE AND NOT SO SUBTLE DISCRIMINATION IS STILL FREQUENTLY BROUGHT TO BEAR ON PREGNANT EMPLOYEES THEIR BOOK ALSO DETAILS A PREGNANT WOMAN'S RIGHTS UNDER FEDERAL LAW THE PREGNANCY DISCRIMINATION ACT PASSED LAST YEAR COVERS FIRMS WITH AS FEW AS 15 EMPLOYEES BUT IT DOES NOT PROVIDE THE SAME GUARANTEES AS THE EARLIER LAW THE FAMILY AND MEDICAL LEAVE ACT FOR EXAMPLE THE NEW LAW DOES NOT REQUIRE EMPLOYERS TO GUARANTEE A PREGNANT WORKER'S POSITION WHILE SHE IS OUT ON LEAVE NOR DOES IT REQUIRE THEM TO PROVIDE SUCH LEAVE OR EVEN PREGNANCY DISABILITY INSURANCE IT SIMPLY REQUIRES EMPLOYERS TO GUARANTEE JOB SECURITY TO PREGNANT WOMEN IF AND TO THE SAME EXTENT THEY GUARANTEE JOB SECURITY TO PEOPLE RETURNING FROM OTHER DISABILITY LEAVES ONE APPENDIX OF THE BOOK PROVIDES A SUMMARY OF STATE LEGISLATION ON PARENTAL FAMILY AND MEDICAL LEAVE SOME STATE LAWS ARE STRICTER THAN EXISTING FEDERAL LAWS VERMONT FOR EXAMPLE REQUIRES EMPLOYERS WITH AS FEW AS 10 EMPLOYEES TO PROVIDE THEM WITH UP TO 12 WEEKS OF LEAVE THE AUTHORS ALSO LAY OUT CHILDCARE ALTERNATIVES MANY WORKING WOMEN BELIEVE AN AU PAIR TO BE THE IDEAL SOLUTION BUT FORGET THAT SUCH WORKERS ARE PROVIDED ONLY WITH ANNUAL WORK PERMITS THAT MEANS THE FAMILY MUST BEGIN THE TEDIOUS SEARCH ANEW EVERY YEAR ANOTHER HELPFUL APPENDIX PROVIDES A LIST OF RESOURCE PHONE NUMBERS INCLUDING THAT OF THE INTERNATIONAL NANNY ASSOCIATION WITH THE TAX SEASON UPON US LOTS OF READERS SHOULD BE ATTRACTED TO A BOOK WITH THE TITLE HOW TO PAY ZERO TAXES MCGRAWHILL 590 PAGES 1495 BY JEFF SCHNEPPER HE ARGUES WITH SOME CAUSE THAT TAXPAYERS WITH HIGH INCOMES CAN AFFORD HIGHLY PAID PROFESSIONAL TAX CONSULTANTS TO REDUCE THEIR TAXES HE SAYS HIS BOOK IS FOR THE REST OF US AND HAS COME UP WITH MORE THAN 150 LEGAL WAYS TO MINIMIZE THE BIG BITE MOST PEOPLE KNOW THAT IF THEY SELL THEIR HOME AT A PROFIT THE GAIN ON THE SALE CAN BE SHELTERED FROM TAX IF REINVESTED IN A NEW HOME WITHIN TWO YEARS BUT WHAT IF YOU CAN'T FIND A BUYER FOR YOUR OLD HOME YET HAVE ALREADY PURCHASED A NEW HOME HE NOTES THAT AN INTERNAL REVENUE SERVICE RULING ALLOWS THE SALE OF THE OLD HOME TO A CORPORATION THE TAXPAYER SETS UP IN THIS SCENARIO THE CORPORATION THEN RENTS THE HOME TO AN OUTSIDE TENANT THE GAIN ON THE SALE OF THE HOME TO THE CORPORATION WILL NOT BE TAXED SO LONG AS THE COST OF THE NEW HOME IS EQUAL TO OR GREATER THAN THE OLD HOME'S ADJUSTED SALES PRICE MOREOVER SINCE THE OLD HOME HAS BEEN SOLD AT ITS APPRECIATED PRICE IT CAN NOW BE DEPRECIATED AT A MUCH HIGHER RATE BOTH THE INCOME GENERATED FROM THE RENTING OF THE HOME THE HIGHER DEPRECIATION AND ANY EXPENSES ASSOCIATED WITH MAINTAINING THE HOME WILL BE PASSED THROUGH THE CORPORATION TO THE TAXPAYER ANOTHER LITTLEKNOWN QUIRK IS THE GOVERNMENT'S SPECIAL TAX SHELTER FOR THOSE WHO PAY HIGHEREDUCATION EXPENSES THIS BENEFIT CAN BE OBTAINED BY PURCHASING CERTAIN US SAVINGS BONDS FOR YEARS AFTER 1989 A TAXPAYER CAN POTENTIALLY EXCLUDE ALL OR A PORTION OF THE INTEREST THAT ACCRUES ON THE BOND IF THE BOND IS REDEEMED IN A YEAR WHEN QUALIFIED EDUCATION EXPENSES MUST BE PAID IN THE CASE OF A JOINT RETURN THE BENEFIT STARTS TO BE PHASED OUT IF THE TAXPAYER'S MODIFIED ADJUSTED GROSS INCOME EXCEEDS 68250 IN 1993 THE NUMBER IS INDEXED FOR INFLATION YES THIS IS MAKING YOUR HEAD HURT BUT YOU'LL FEEL A LOT BETTER AFTER APRIL 15 9402220003 940218 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 9402220002 940222 CREDIT RATINGS CIGNA CORP MOODY'S INVESTORS SERVICE INC PUT THIS INSURANCE HOLDING COMPANY'S DEBT RATINGS ON REVIEW FOR A POSSIBLE DOWNGRADE MOODY'S IS ALSO REVIEWING THE FINANCIALSTRENGTH RATINGS OF CIGNA'S PROPERTY AND CASUALTY UNIT MOODY'S NOW RATES CIGNA'S SENIOR NOTES SINGLEA2 ABOUT 14 BILLION IN DEBT IS AFFECTED MOODY'S SAID IT WILL FOCUS ITS REVIEW ON THE STRATEGIC OUTLOOK FOR AND RISK PROFILE OF CIGNA'S DOMESTIC PROPERTY AND CASUALTY OPERATIONS AS WELL AS THE SEGMENT'S CAPITAL NEEDS THE RATING AGENCY WILL ALSO LOOK INTO HOW MUCH MORE MONEY THE PHILADELPHIABASED COMPANY MIGHT LOSE ON ASBESTOS AND ENVIRONMENTAL CLAIMS DEL WEBB CORP PHOENIX STANDARD & POOR'S CORP LOWERED ITS RATINGS ON 191 MILLION OF DEBT OF THIS BUILDER OF MASTERPLANNED RETIREMENT HOUSING COMMUNITIES LOWERED WERE THE RATINGS ON 95 MILLION OF 10 7/8 SENIOR NOTES DUE 2000 TO SINGLEBPLUS FROM DOUBLEBMINUS AND ON 96 MILLION OF 9 3/4 SENIOR SUBORDINATED DEBENTURES DUE 2003 TO SINGLEBMINUS FROM SINGLEB S&P ALSO ASSIGNED A SINGLEBMINUS RATING TO THE COMPANY'S RECENTLY COMPLETED OFFERING OF 100 MILLION OF 9 SENIOR SUBORDINATED DEBENTURES DUE 2006 S&P SAID THE DOWNGRADE REFLECTS THE COMPANY'S PLANS TO EXPAND ITS OPERATIONS WHICH WILL MAKE IT MORE HIGHLY LEVERAGED FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO MOODY'S INVESTORS SERVICE INC DOWNGRADED FIGGIE'S LONGTERM DEBT RATINGS AND PLACED THEM UNDER REVIEW FOR A POSSIBLE FURTHER DOWNGRADE CITING CONTINUED FINANCIAL DIFFICULTIES AT THE COMPANY ABOUT 195 MILLION IN DEBT WAS AFFECTED MOODY'S DOWNGRADED SENIOR DEBT TO BA3 FROM BA1 AND SUBORDINATED DEBT TO B2 FROM BA3 THE RATINGS AGENCY SAID THE ACTION REFLECTS THE COMPANY'S PROJECTED LOSSES AND DETERIORATING OPERATIONAL RESULTS OVER THE PAST SEVERAL YEARS THE COMPANY ANNOUNCED LAST WEEK THAT IT WOULD SUSPEND ITS DIVIDEND AND SEEK NEW LONGTERM FINANCING FIGGIE HAS INTERESTS IN FIREPROTECTION PRODUCTS MACHINERY AND ALLIED PRODUCTS AND OTHER AREAS THE COMPANY COULDN'T BE REACHED FOR COMMENT RITE AID CORP HARRISBURG PA MOODY'S INVESTORS SERVICE INC DOWNGRADED THE DEBT RATINGS OF RITE AID BECAUSE OF THE INCREASED CREDIT RISK STEMMING FROM THE COMPANY'S EQUIVOCAL INVESTMENT STRATEGY TO MEET THE CHALLENGES OF THE CHANGING HEALTHCARE SERVICES ENVIRONMENT AMONG THE RATINGS DOWNGRADED WERE SENIOR UNSECURED DEBENTURES AND INDUSTRIAL REVENUE BONDS TO A3 FROM A2 ABOUT 12 BILLION OF DEBT IS AFFECTED MOODY'S SAID RITE AID A DRUGSTORE OPERATOR NEEDS TO ACCELERATE INVESTMENT IN ITS CORE DRUG RETAIL BUSINESS OR RELATED HEALTHCARE SERVICES TO MAINTAIN A LONGTERM COMPETITIVE POSITION WELBILT CORP NEW HYDE PARK NY STANDARD & POOR'S CORP SAID IT RAISED ITS SENIOR DEBT RATING ON THIS MAKER OF FOODSERVICE EQUIPMENT TO DOUBLEBMINUS FROM SINGLEB AND REMOVED THE COMPANY FROM CREDITWATCH ABOUT 100 MILLION OF DEBT IS AFFECTED S&P SAID THE UPGRADE REFLECTS IMPROVEMENT IN THE COMPANY'S CAPITAL STRUCTURE AND ENHANCED FINANCIAL FLEXIBILITY FOLLOWING ITS INITIAL PUBLIC OFFERING OF 48 MILLION SHARES PROCEEDS OF ABOUT 62 MILLION WERE USED PRIMARILY TO REDEEM HIGHCOUPON SUBORDINATED DEBT 9402220001 940222 SMALL STOCK FOCUS ALIAS RESEARCH MAY YET REAP BENEFITS FROM MICROSOFT'S PLAN TO BUY RIVAL BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO WHEN MICROSOFT CORP RECENTLY ANNOUNCED ITS PLAN TO ACQUIRE SOFTIMAGE INC A LEADER IN THE MARKET FOR SPECIALTY DESIGN AND ANIMATION SOFTWARE INVESTORS IN SOFTIMAGE'S MAIN RIVAL TORONTOBASED ALIAS RESEARCH INC RAN FOR THE HILLS SHARES OF ALIAS PLUNGED 145 ON THE NEWS OF MICROSOFT'S 130 MILLION ACQUISITION PROPOSAL AS INVESTORS PANICKED AT THE POSSIBILITY OF COMPETING WITH THE COMPUTER INDUSTRY GIANT THE STOCK DROPPED FROM 18125 A SHARE TO 1625 THE DAY AFTER THE MICROSOFT ACQUISITION PROPOSAL WAS ANNOUNCED AND HAS SINCE FALLEN FURTHER CLOSING FRIDAY AT 1550 OFF 125 CENTS ON THE NASDAQ STOCK MARKET IT'S A KNEEJERK REACTION BUT AN UNDERSTANDABLE ONE SAID LEONARD BRECKEN AN ANALYST AT OPPENHEIMER & CO IN NEW YORK IT'S A BIT OF A SHOCK TO WAKE UP ONE MORNING AND FIND YOU'RE COMPETING WITH A GIANT LIKE MICROSOFT INSTEAD OF JUST SMALL MONTREALBASED SOFTIMAGE BUT WHAT LOOKS LIKE A NIGHTMARE COULD BECOME A DREAM COME TRUE FOR ALIAS INVESTORS SOME ANALYSTS ARGUE THESE BULLS BELIEVE THAT ALIAS ACTUALLY COULD EMERGE AS A WINNER FROM THE PROPOSED MICROSOFTSOFTIMAGE ALLIANCE DUE TO A STRONG PRODUCT LINE AND THE POSSIBILITY THAT AT LEAST SOME OF SOFTIMAGE'S ATTENTION WILL BE DIVERTED AWAY FROM THE HIGHEND GRAPHIC DESIGN SOFTWARE MARKET AND TOWARD LOWEREND SOLUTIONS FOR MICROSOFT I'M TELLING MY CLIENTS THAT IT'S A GIFT IT'S A WONDERFUL OPPORTUNITY CHARLES FINNIE GENERAL PARTNER AT VOLPE WELTY & CO A SAN FRANCISCOBASED INVESTMENT DEALER SAID OF THE DROP IN ALIAS'S SHARE PRICE MICROSOFT APPEARS TO HAVE LITTLE INTEREST IN ENTERING THE EXOTIC NICHE MARKET WHERE ALIAS AND SOFTIMAGE NOW COMPETE MR FINNIE SAYS THEY MICROSOFT APPEAR TO BE POSITIONING THEMSELVES FOR THE DAY WHEN THEY CAN APPLY THE ANIMATION TECHNOLOGY TO THEIR OWN LOWEND PRODUCTS ALIAS HAD BEGUN TO DRAW POSITIVE ATTENTION FROM ANALYSTS AND INVESTORS BEFORE THE MICROSOFT BOMBSHELL THE STOCK ROSE FROM A 52WEEK LOW OF 650 TO A HIGH OF 1925 IN JANUARY AS THE COMPANY'S EARNINGS PROSPECTS BRIGHTENED AND IT BECAME CLEAR THAT A NEW MANAGEMENT TEAM BROUGHT ABOARD TWO YEARS AGO HAD SUCCEEDED IN TURNING THE COMPANY AROUND IN THE YEAR ENDED JAN 31 1992 ALIAS HIT BY SOARING COSTS ACCOUNTS RECEIVABLE THAT STRETCHED TO 120 DAYS AND HIGH DEBT LEVELS REPORTED A LOSS OF 174 MILLION OR 326 A SHARE WHEN ROBERT BURGESS THE NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER TOOK UP HIS JOB THERE WASN'T ENOUGH CASH ON HAND TO MEET THE PAYROLL BY THE FOLLOWING YEAR MANAGEMENT HAD TRIMMED COSTS BY 60 AND THE LOSS ON CONTINUING OPERATIONS FELL TO 84 MILLION FROM 174 MILLION FOR THE FISCAL YEAR JUST ENDED ANALYSTS ESTIMATE EARNINGS REACHED 38 CENTS A SHARE AND EXPECT THEM TO JUMP TO BETWEEN 60 CENTS AND 70 CENTS A SHARE IN THE YEAR ENDING JAN 31 1995 ALIAS'S PRODUCTS ALSO HAVE CAUGHT ON IN A BIG WAY ITS ANIMATION SOFTWARE HAS BEEN USED IN A NUMBER OF HOLLYWOOD PRODUCTIONS INCLUDING LAST YEAR'S HIT MOVIE JURASSIC PARK SALES OF ALIAS'S ANIMATION SOFTWARE NEARLY TREBLED LAST YEAR MR BURGESS SAID IN AN INTERVIEW IN DECEMBER AND ALIAS HAS WON NEW BUSINESS OVER COMPETITORS SUCH AS SOFTIMAGE THE FATE OF ALIAS'S LATEST PRODUCT FOR THE HIGHEND INDUSTRIAL DESIGN MARKET STUDIOPAINT V10 WILL BE AN IMPORTANT INDICATOR FOR ANALYSTS LIKE OPPENHEIMER'S MR BRECKEN SO FAR FEW INDUSTRIAL DESIGNERS HAVE BEEN KEEN TO SWAP THEIR PENCILS AND PAPER FOR A COMPUTER AND MR BURGESS CALCULATED THAT ONLY ABOUT 10 OF DESIGN WORK CURRENTLY IS AUTOMATED BUT MR BRECKEN SAYS THAT IF THE REVOLUTIONARY STUDIOPAINT WHICH ALLOWS DESIGNERS TO SKETCH A DESIGN FREEHAND ONTO A COMPUTER AND THEN CONVERTS THE DRAWING INTO A THREEDIMENSIONAL MODEL CATCHES ON IT WILL OFFSET ANY PRICING PROBLEMS IN THE MORE COMPETITIVE ANIMATION SOFTWARE MARKET AND TRANSLATE INTO EVEN STRONGER GROWTH FOR ALIAS IF IN THE NEXT QUARTER I SEE SOME DEFINITIVE SIGNS OF LIFE IN THAT DESIGN MARKET AND SEE THE YEAREND EARNINGS ARE STRONG THEN I'LL BE LOOKING AT UPGRADING MY RATING ON THE STOCK MR BRECKEN SAID HE CUT HIS RATING TO MARKET PERFORMER FROM ANALYST BUY THE DAY THE MICROSOFTSOFTIMAGE PACT WAS ANNOUNCED AS THE STOCK WAS NEAR HIS SHORTTERM PRICE TARGET OF 18 A SHARE RISING RATES CAUSED ANOTHER CHOPPY SESSION PUSHING SMALLCOMPANY STOCK PRICES MODESTLY LOWER IN DOUBLEWITCHING TRADING BUT SMALLER ISSUES OUTDID THEIR LARGER COUNTERPARTS TRADERS SAID THE MONTHLY EXPIRATION OF STOCK AND INDEX OPTIONS AS WELL AS SELL PROGRAMS CREATED ACROSSTHEBOARD VOLATILITY BUT THOSE FACTORS TYPICALLY HIT BIG CYCLICAL ISSUES HARDEST THE RUSSELL 2000 INDEX FELL 083 OR 031 TO 26405 AFTER REACHING AN INTRADAY LOW OF 26371 THE NASDAQ COMPOSITE INDEX LOST 139 TO 78885 ALTHOUGH AT ITS WORST LEVEL IT WAS DOWN TO 78477 DECLINING ISSUES BEAT ADVANCERS 1698 TO 1421 ON NASDAQ NATIONAL MARKET VOLUME OF 247928600 SHARES AND TOTAL VOLUME OF 300634000 SHARES 9402220186 940125 STILL GROUNDED FOR LORENZO GETTING A NEW AIRLINE ALOFT IS PROVING TREACHEROUS HOPING TO WIN US NOD DESPITE UNION HOSTILITY HE'LL ADD NEW INVESTORS A SINGLE BAGGER' ON SAFETY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL ALL HE WANTED WAS TO START A TINY AIRLINE JUST FOUR PLANES FERRYING PEOPLE ON THE CHEAP FROM BALTIMORE TO BOSTON AND ATLANTA FOR A WEALTHY ENTREPRENEUR WITH HIS EXPERIENCE THAT SHOULDN'T HAVE BEEN TOO DIFFICULT BUT HE ISN'T JUST ANY ENTREPRENEUR HE IS FRANK LORENZO ONE OF THE MOST DESPISED MEN BY SOME PARTIES IN AVIATION HISTORY AND THANKS TO HIS MODEST PROPOSAL HE HAS ONCE AGAIN COME UNDER SCATHING ATTACK BY LABOR UNIONS SOME FORMER COLLEAGUES AND EVEN OFFICIALS IN THE FEDERAL GOVERNMENT ANY DAY NOW THE DEPARTMENT OF TRANSPORTATION IS EXPECTED TO WEIGH IN WITH A DECISION THAT MAY BAR MR LORENZO FROM LAUNCHING THE AIRLINE HE ONCE PROPOSED CALLING FRIENDSHIP AIRLINES ALREADY A TRANSPORTATION DEPARTMENT ADMINISTRATIVE LAW JUDGE HAS COME DOWN AGAINST HIM IN A PRELIMINARY RULING SAYING THAT MR LORENZO MAY HAVE THE CASH BUT HE DOESN'T HAVE THE SKILLS AND ISN'T LIKELY TO PLAY BY THE RULES NOW MR LORENZO IS MAKING ONE LAST EFFORT TO CHANGE THE GOVERNMENT'S MIND TODAY HE IS EXPECTED TO ANNOUNCE THAT TWO NEW INVESTORS HAVE JOINED HIM IN ATX INC HIS AIRLINEVENTURE COMPANY DILUTING HIS STAKE TO WELL BELOW 50 FROM 74 THOUGH THE INVESTORS HAVEN'T BEEN IDENTIFIED PEOPLE CLOSE TO MR LORENZO SAY ONE IS A FORMER HIGHRANKING NEW YORK DEMOCRATIC OFFICIAL AND THE OTHER IS AN INVESTMENT GROUP BASED IN NEW YORK CLEARLY MR LORENZO HOPES THAT BY SLASHING HIS OWNERSHIP HE WILL MAKE HIS PROPOSED LITTLE AIRLINE PALATABLE AT LAST TO HIS FOES IT'S A GAMBLE THOUGH AND ONE THAT HASN'T PAID OFF FOR OTHERS IF HE SELLS A MAJORITY STAKE MR LORENZO AND HIS GROUP MAY HAVE TO UNDERGO ANOTHER SOCALLED FITNESS REVIEW BY THE TRANSPORTATION DEPARTMENT SAYS SAMUEL PODBERESKY A DEPARTMENT LAWYER AND IF THE DEPARTMENT FINDS THAT HE ISN'T FIT MR PODBERESKY SAYS THEN SELLING A CONTROLLING INTEREST ISN'T GOING TO SOLVE THE PROBLEM THAT MR LORENZO'S OPPONENTS ARRAYED THEMSELVES IN SUCH FORCE AGAINST HIM SHOWS HOW THE ENMITY AGAINST HIM JUST WON'T DIE HIS UNION FOES MOBILIZED NO FEWER THAN 57 MEMBERS OF CONGRESS AGAINST HIM AND EVEN BRIEFLY CONSIDERED BRINGING UP A 1992 DRUNKENDRIVING ARREST TO CLOUD HIS NAME THE CHARGED FIGHT HAS OPENED OLD WOUNDS AND INFLICTED NEW ONES IN A BITTER EPISODE THAT BEGAN UNFOLDING LAST SUMMER BEHIND THE DOORS OF A STUFFY HEARING ROOM IN THE BOWELS OF THE TRANSPORTATION DEPARTMENT'S QUARTERS NEAR CAPITOL HILL MR LORENZO OF COURSE MADE HIS NAME AS THE STEELY UNIONBUSTING CHIEF OF THE NOWDEFUNCT TEXAS AIR CORP PARENT OF CONTINENTAL AND EASTERN AIRLINES HE HAS TWICE TAKEN AIRLINES INTO BANKRUPTCY AND HIS UNYIELDING DEMANDS FOR LABOR CONCESSIONS PROMPTED A BRUISING 1989 STRIKE AT EASTERN THAT PROVED FATAL TO THE AIRLINE HE SHOWS NO SIGNS OF BACKING DOWN IN THIS LATEST FACEOFF EITHER WE'RE EXACTLY THE KIND OF PEOPLE THE TRANSPORTATION DEPARTMENT SHOULD BE ATTRACTING CONTENDS THE SLIM ANGULAR 53YEAROLD EXECUTIVE I'VE BECOME THE UNIONS' WHIPPING BOY AIRLINE UNIONS THOUGHT THEY WERE RID OF MR LORENZO IN AUGUST 1990 WHEN HE STEPPED DOWN FROM CONTINENTAL HOLDINGS THE SUCCESSOR COMPANY TO TEXAS AIR AND SOLD HIS SHARES TO SCANDINAVIAN AIRLINES SYSTEM INC FOR MORE THAN 20 MILLION AS PART OF THE DEAL HE AGREED TO STAY OUT OF THE AIRLINE BUSINESS FOR SEVEN YEARS HE SET UP HOUSTONBASED SAVOY CAPITAL INC A VENTURECAPITAL FIRM AND ANNOUNCED PLANS TO INVEST IN STARTUP FIRMS IN OTHER FIELDS BUT MR LORENZO JUST COULDN'T STAY AWAY IN JANUARY 1993 HE PAID 5 MILLION TO SETTLE WITH CONTINENTAL CREDITORS WHO CLAIMED HE HAD SOLD HIS SHARES TO SAS AT TOO HIGH A PRICE AS PART OF THE SETTLEMENT THE NONCOMPETE CLAUSE WAS SCRAPPED BY LATE 1992 MR LORENZO HAD HIRED THREE FORMER CONTINENTAL EXECUTIVES WHO DID RESEARCH SHOWING A NICHE FOR A CUTRATE AIRLINE ON THE EAST COAST AT THE START OF 1993 JUST BEFORE THE NONCOMPETE CLAUSE WAS KILLED HE BROUGHT IN STEPHEN J KOLSKI FORMER PRESIDENT OF CONTINENTAL'S COMMUTER CARRIER TO OFFICIALLY OPEN UP SHOP AS AN AIRLINE AGAIN MR LORENZO HAD TO PASS MUSTER WITH THE TRANSPORTATION DEPARTMENT WHICH JUDGES THE FITNESS OF ANYONE WHO WANTS TO START A CARRIER IN A BID TO SMOOTH THE WAY AND APPEASE POTENTIAL CRITICS MR KOLSKI IMMEDIATELY EMBARKED ON A DAMAGECONTROL MISSION BY SEEKING OUT MR LORENZO'S TOUGHEST FOES THE UNIONS REPRESENTING AIRLINE PILOTS AND MECHANICS MR LORENZO'S FRONT MAN COULD GET THROUGH DOORS MR LORENZO HIMSELF WOULD HAVE HAD SLAMMED IN HIS FACE A BALDING BEARISH MAN WHO LOOKS LIKE THE NOTRE DAME FOOTBALL PLAYER HE ONCE WAS MR KOLSKI FIRST ARRANGED A MEETING WITH RANDOLPH BABBITT THE PRESIDENT OF THE POWERFUL AIR LINE PILOTS ASSOCIATION THE TWO MEN HADN'T MET BEFORE BUT THEY KNEW OF EACH OTHER MR KOLSKI HAD BEEN A VICE PRESIDENT OF EASTERN IN THE 1980S UNDER MR LORENZO WHEN MR BABBITT WAS A CAPTAIN FLYING A300 JETLINERS THERE ON A FRIGID TUESDAY LAST FEBRUARY THE TWO MEN CHATTED AMICABLY IN THE UNION PRESIDENT'S OFFICE FILLED WITH MODELS OF UNIONREPRESENTED CARRIERS INCLUDING TWO FROM EASTERN SITTING IN FRONT OF A WALL ADORNED WITH FRAMED NOWWORTHLESS EASTERN STOCK CERTIFICATES MR KOLSKI DESCRIBED THE CONCEPT OF FRIENDSHIP AIRLINES WHICH WOULD FLY TWO DAILY ROUND TRIPS FROM BALTIMORE TO ATLANTA AND TO BOSTON HE NEEDED PILOTS HE SAID BUT THERE WAS SOMETHING THE UNION MIGHT WANT TO KNOW FRIENDSHIP'S BIGGEST SHAREHOLDER WAS FRANK LORENZO MR LORENZO DIDN'T WANT TO BE AT ODDS WITH THE UNION ANY MORE MR KOLSKI SAID COULDN'T IT FORGIVE AND FORGET WHAT HAPPENED NEXT SOURED ANY PROSPECT OF THE TWO SIDES RECONCILING THOUGH THE SIDES OFFER VERY DIFFERENT VERSIONS OF WHAT TRANSPIRED ACCORDING TO MR BABBITT THE UNION HAD NOTHING AGAINST MR KOLSKI BUT MR LORENZO WAS ANOTHER MATTER YOU'RE ENTERING THIS WITH AN ALBATROSS YOU'VE TIED AROUND YOUR OWN NECK MR BABBITT SAYS HE TOLD MR KOLSKI WHY BUT AS MR KOLSKI TELLS IT MR BABBITT NEVER SAID THE UNION WOULD OPPOSE A LORENZO AIRLINE HE CLAIMS MR BABBITT INSTEAD URGED HIM TO HIDE MR LORENZO'S OWNERSHIP A FEDERAL CRIME HE SAYS MR BABBITT THEN OFFERED HIM A LIST OF OUTOFWORK PILOTS IN ANY CASE A DAY LATER THE PILOTS UNION DECLARED ITS OPPOSITION TO MR LORENZO'S REENTRY INTO THE AIRLINE INDUSTRY EVEN THOUGH MR LORENZO HADN'T YET ANNOUNCED HIS PLANS HIMSELF THE UNION'S PRESS RELEASE MINCED NO WORDS HE IS THE VERY EMBODIMENT OF EVIL MR KOLSKI PRESSED ON TRYING TO SET UP A MEETING WITH THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH REPRESENTS MECHANICS AND BAGGAGE HANDLERS HE WAS REBUFFED AT THE SAME TIME MESSRS LORENZO AND KOLSKI BEGAN COURTING STATE POLITICIANS THEY TALKED WITH MARYLAND ECONOMICDEVELOPMENT OFFICIALS ABOUT GETTING TAX INCENTIVES THEY DINED WITH GOV DONALD SCHAEFER JUST BEFORE VALENTINE'S DAY THE GOVERNOR WAS AMENABLE MR KOLSKI SAYS WE NEED THE BUSINESS WE WANT THE BUSINESS WE WANT TO BE HELPFUL MR KOLSKI SAYS A STATE ECONOMICDEVELOPMENT OFFICIAL TOLD HIM BUT A MARYLAND STATE LEGISLATOR WHO ALSO HAPPENED TO BE AN OFFICER OF THE MACHINISTS UNION LEARNED OF THE TALKS THE WELLORGANIZED UNION URGED ITS MARYLAND MEMBERS TO BEGIN A LETTERWRITING CAMPAIGN TO STATE LEGISLATORS AND THE LEGISLATORS ULTIMATELY PASSED A RESOLUTION OPPOSING USE OF STATE FUNDS FOR FRIENDSHIP SIMILAR LOBBYING TOOK PLACE ON CAPITOL HILL BY THE TIME FRIENDSHIP APPLIED TO THE TRANSPORTATION DEPARTMENT FOR AN OPERATING CERTIFICATE 57 HOUSE MEMBERS HAD WRITTEN TO SECRETARY FEDERICO PENA URGING HIM TO REJECT IT SPURRED BY THIS FLURRY OF ANTAGONISM AND WITH THE BENEFIT OF HINDSIGHT THE DEPARTMENT TOOK THE UNUSUAL STEP OF ORDERING A FORMAL INVESTIGATION INTO FRIENDSHIP A PUBLIC HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE WAS SET FOR JUNE MR LORENZO SAID HE WELCOMED THE HEARING BUT IRE AGAINST HIS UNION FOES SURFACED AT AN APRIL LUNCHEON OF THE AERO CLUB IN WASHINGTON AT WHICH SECRETARY PENA WAS TO MAKE HIS FIRST SPEECH TO THE AIRLINE INDUSTRY AS A LATEARRIVING MR LORENZO WALKED BY THE PILOTS UNION'S TABLE IN A CROWDED HOTEL BALLROOM HE PAUSED AND STUCK HIS NOSE IN THE AIR I THOUGHT I SMELLED SOMETHING HE SAID IN A VOICE LOUD ENOUGH FOR MR BABBITT AND OTHER UNION OFFICIALS TO HEAR MR LORENZO SAYS HE WAS JOKING IN HIS YEARS BATTLING LABOR IN THE 1980S MR LORENZO HAD PAID BIG MONEY FOR LAWYERS AND LOBBYISTS TO KEEP HIS AIRLINES FLYING BUT THIS TIME HE HADN'T BOTHERED HE DIDN'T THINK HE NEEDED THE HELP A BUSH ADMINISTRATION APPOINTEE HAD TOLD HIM HIS VENTURE WAS SUCH A SURE THING IT PROBABLY DIDN'T EVEN NEED A LAWYER MR LORENZO SAYS HIS UNION FOES HAD OTHER IDEAS THE PILOTS AND MACHINISTS REASSEMBLED THE TEAM OF LAWYERS AND CONSULTANTS THAT HAD OPPOSED MR LORENZO IN THE 1980S SOME HAD WORKED TOGETHER FOR MORE THAN A DECADE AND KNEW EACH OTHER SO WELL THAT THEY DIDN'T NEED MANY PLANNING SESSIONS IT'S ALMOST LIKE SHORTHAND SAYS JOHN SULLIVAN A PARTNER WITH THE LAW FIRM OF GUERRIERI EDMOND & JAMES WHICH REPRESENTS THE MACHINISTS UNION IN ONE STRATEGY SESSION A UNION OFFICIAL SUGGESTED A PERSONAL ATTACK THE UNION HAD LEARNED OF A DRUNKENDRIVING ARREST OF MR LORENZO IN AUGUST 1992 IN HOUSTON IN WHICH HE FAILED AN AGILITY TEST AND WAS BROUGHT IN TO THE POLICE STATION MR LORENZO PLEADED NO CONTEST AND WAS GIVEN TWO YEARS OF PROBATION ONE PILOTSUNION OFFICIAL ARGUED THAT SINCE PILOTS CONVICTED OF DRUNKEN DRIVING CAN LOSE THEIR FLYING LICENSES MR LORENZO SHOULD BE HELD TO THE SAME STANDARD BUT EVERYONE ELSE RESISTED THERE WERE ENOUGH REASONS TO OPPOSE HIM ON BUSINESS REASONS NOT TO BRING HIS PERSONAL LIFE INTO IT MR BABBITT SAYS OVER AT THE LORENZO CAMP MEANWHILE PROBLEMS WERE CROPPING UP AT EVERY TURN IN MAY MR LORENZO WAS FORCED TO DROP THE FRIENDSHIP AIRLINES NAME BECAUSE UNITED OWNED THE RIGHTS TO IT HE ALSO DROPPED THE EASYGOING REGULATORY ATTORNEY HE HAD RETAINED WHEN HE THOUGHT HIS COMPANY WOULD BE A SHOOIN REPLACING HIM WITH FEISTY ROBERT BECKMAN OF BECKMAN KIRSTEIN & MURPHY IN WASHINGTON MR BECKMAN PEPPERED THE TRANSPORTATION DEPARTMENT WITH EXTRA FILINGS HE OPPOSED WHAT HE VIEWED AS ONEROUS DOCUMENT REQUESTS HE OBJECTED TO AN ORDER THAT MR LORENZO PRODUCE COPIES OF EVERY LAWSUIT FILED AGAINST HIM A REQUIREMENT INVOLVING HUNDREDS OF THOUSANDS OF PAGES AND SO MANY LAWSUITS THAT THE LORENZO CAMP CAN'T EVEN PROVIDE AN EXACT NUMBER THE ADMINISTRATIVE LAW JUDGE ULTIMATELY WOULD FIND THAT ATX'S FAILURE TO HAND OVER THE DOCUMENTS PROMPTLY SHOWED THE COMPANY WASN'T INCLINED TO COMPLY WITH FEDERAL REQUIREMENTS THE FIRST DAYS OF THE HEARINGS TOOK PLACE IN LATE JUNE DURING WASHINGTON'S STIFLING SUMMER AND THE DRAB HEARING ROOM WASN'T WELL AIRCONDITIONED WITH SEATS FOR ONLY A FEW DOZEN SPECTATORS IT WAS PACKED MR LORENZO GOT OFF TO A BAD START HE SHED HIS SUIT JACKET AND DRAPED IT OVER THE BACK OF THE WITNESS CHAIR TO THE ASTONISHMENT OF THE BUTTONEDUP COURTROOM CROWD JUDGE ROBERT L BARTON TOLD HIM TO PUT THE JACKET BACK ON AND MR LORENZO SHEEPISHLY COMPLIED THE REST OF THE HEARING DIDN'T GO MUCH BETTER FOR MR LORENZO THE PILOTS UNION COLLECTED A LONG LIST OF MAINTENANCE VIOLATIONS AT EASTERN WHEN MR LORENZO CONTROLLED THE CARRIER AND DESCRIBED LABOR AGREEMENTS HE HAD REFUSED TO SIGN THE MACHINISTS UNION PERSUADED FORMER CONTINENTAL CHIEF EXECUTIVE D JOSEPH CORR TO TESTIFY AS ONE OF NINE CONTINENTAL PRESIDENTS IN AS MANY YEARS MR CORR DESCRIBED MR LORENZO'S DAYTODAY MANAGEMENT STYLE AS DISHONEST INATTENTIVE TO MATTERS OF SAFETY DISRUPTIVE AND GENERALLY UNQUALIFIED HE CALLED HIS FORMER BOSS A SINGLE BAGGER WHEN IT CAME TO SAFETY SOME GROCERY STORES WHEN YOU GO IN TO GET YOUR GROCERIES THEY GIVE YOU JUST A SINGLE BAG OTHER GROCERY STORES THAT YOU GO TO THEY GIVE YOU A DOUBLE BAG MR LORENZO HE TESTIFIED BELONGED TO THE FORMER CATEGORY MR LORENZO SAYS HE FIRED MR CORR IN 1989 FOR INCOMPETENCE AND CONTENDS THE FORMER EXECUTIVE LIED TO INGRATIATE HIMSELF WITH UNIONS WHICH ARE LOOKING FOR CHIEF EXECUTIVES AT AIRLINES IN WHICH THEY HOLD STAKES HE'S A DISGRUNTLED EMPLOYEE MR LORENZO SAYS ALL THIS TESTIMONY FELL ON WILLING EARSTHOSE OF FEDERAL REGULATORS WHO HAD HAD THEIR FIRST RUNINS WITH MR LORENZO DURING THE 1980S TRANSPORTATION DEPARTMENT ANALYSTS SIFTED THROUGH 90 BOXES OF OLD DOCUMENTS DATING BACK TO MR LORENZO'S DAYS CONTROLLING EASTERN CONTINENTAL AND CONTINENTAL EXPRESS TO MR PODBERESKY OF THE TRANSPORTATION DEPARTMENT'S PUBLIC COUNSEL OFFICE THE NEW EVIDENCE SHOWED MR LORENZO COULDN'T CLAIM AS HE HAD DURING THE HEARINGS THAT HE WASN'T INVOLVED IN DAYTODAY OPERATIONS AT HIS OLD AIRLINES WHEN PROBLEMS AROSE HE WAS INVOLVED FROM DAY ONE TO THE LAST DAY THE TRANSPORTATION DEPARTMENT LAWYER SAYS HE DIDN'T FIX IT FROM OUR VANTAGE POINT SOMEONE'S GOT TO BE HELD ACCOUNTABLE MR LORENZO CAN'T APPEAL THE TRANSPORTATION DEPARTMENT RULING UNTIL SECRETARY PENA ISSUES A FINAL DECISION BUT HE HAS ALREADY ASSEMBLED THE LEGAL TEAM TO DO JUST THAT AND SAYS HE WILL TAKE HIS CASE TO THE FEDERAL APPEALS COURT IN WASHINGTON IF THE RULING COMES DOWN AGAINST HIM HE HAS ALSO RETAINED A WELLCONNECTED PUBLICRELATIONS FIRM DILENSCHNEIDER & CO WHOSE CHAIRMAN ROBERT DILENSCHNEIDER WAS CHIEF EXECUTIVE OF POWERHOUSE FIRM HILL & KNOWLTON UNDER HIS TENURE THERE THAT FIRM TOOK ON CONTROVERSIAL CLIENTS SUCH AS THE US CONFERENCE OF CATHOLIC BISHOPS IN ITS ANTIABORTION CAMPAIGN AND BANK OF CREDIT & COMMERCE INTERNATIONAL IN THE MIDST OF ITS FINANCIAL SCANDAL LOOKING BACK NOW MESSRS LORENZO AND KOLSKI CONTEND THE TRANSPORTATION DEPARTMENT WAS OPPOSED TO THEIR APPLICATION FROM THE START AND WAS LOOKING FOR REASONS TO REJECT IT WHO REPRESENTED THE PUBLIC IN ALL THIS ASKS MR KOLSKI FLYERS SEEKING CHEAP FARES IN THE NORTHEAST HE ADDS AREN'T LIKELY TO GET THEM BUT THE BALTIMORE MARKET ATX PLANNED TO SERVE HAS BECOME THE EAST COAST'S LOWFARE MECCA SOUTHWEST AIRLINES ADDED BALTIMORE TO ITS ROUTE STRUCTURE IN SEPTEMBER SETTING OFF A PRICE WAR AMONG CARRIERS INCLUDING USAIR AND CONTINENTAL AIRLINES MR LORENZO BATTLING FOR SO LONG TO START UP HIS AIRLINE IN BALTIMORE MAY HAVE MISSED HIS OPPORTUNITY MARYLAND AVIATION ADMINISTRATOR TED MATHIESON SAYS HE HASN'T HEARD FROM MR LORENZO'S GROUP SINCE LAST JUNE NOW HE SAYS HE HEARS RUMORS THAT ATX MIGHT BE LOOKING TO BASE ITS OPERATIONS IN PHILADELPHIA INSTEAD MR LORENZO THROUGH A SPOKESMAN CONFIRMS THAT HE IS INTERESTED IN PHILADELPHIA AS WELL AS IN BOSTON AND NEW YORK SAYS MR MATHIESON THE PICTURE HAS CHANGED A LOT FROM WHERE WE WERE A YEAR AGO DANIEL PEARL CONTRIBUTED TO THIS ARTICLE A RESOLUTION OPPOSING THE USE OF STATE FUNDS TO ATTRACT AN AIRLINE VENTURE HEADED BY FRANK LORENZO TO BALTIMORE/WASHINGTON AIRPORT FAILED TO PASS THE MARYLAND HOUSE OF DELEGATES A JAN 25 PAGEONE ARTICLE INCORRECTLY REPORTED THAT THE LEGISLATIVE BODY PASSED THAT RESOLUTION 9402220047 940131 MANAGER'S JOURNAL A LASTING LEGACY FOR MANAGERS DEMING'S REMARKABLE VISION BY RICHARD GORDON W EDWARDS DEMING'S VISION ABOUT HOW COMPANIES SHOULD BE RUN HAS BEEN BOILED DOWN TO WHAT HE CALLED 14 POINTS FOR MANAGEMENT OUR COMPANY IN PORTLAND ORE IS ONE CASE STUDY IN THE SUCCESS THAT COMES FROM IMPLEMENTING SOME OR ALL OF MR DEMING'S PRINCIPLES HIS 14TH POINT THAT EVERYONE IN THE COMPANY MUST BE PUT TO WORK TO ACCOMPLISH THE FIRM'S TRANSFORMATION MEANS THERE MUST BE PERSONAL TRANSFORMATION AS WELL AND THAT DRAWS FROM MR DEMING'S 13TH POINT THAT COMPANIES INSTITUTE A PROGRAM OF SELFIMPROVEMENT THROUGH READING BOOKS ON PERSONAL GROWTH I FELT MYSELF GROW IN MY ABILITY TO COMMUNICATE AND SAW MY EFFECTIVENESS IN BUSINESS GROW I WANTED TO SHARE THIS GROWTH WITH MY STAFF SO I ADDED A LIBRARY TO OUR LUNCHROOM THIS EVOLVED INTO WHAT WE CALL OUR LEARN AND EARN PROGRAM IN WHICH EMPLOYEES ARE PAID TO READ BOOKS LISTEN TO TAPES OR ATTEND SEMINARS AND THEN MAKE A REPORT TO ME ABOUT WHAT THEY HAVE LEARNED EMPLOYEES GET AS MUCH AS 30 EXTRA IN THEIR PAYCHECKS PER REPORT SOME BOOKS ARE MANDATORY READING SUCH AS THE POWER OF ETHICAL MANAGEMENT WHICH EVERY NEW EMPLOYEE MUST READ WITHIN THE FIRST 90 DAYS OF EMPLOYMENT RAISES ARE OFTEN TIED TO THE EMPLOYEE'S EFFORTS AT SELFIMPROVEMENT LEARN AND EARN HAS ALSO HELPED FULFILL MR DEMING'S FIRST RECOMMENDATION THAT COMPANIES CREATE CONSTANCY OF PURPOSE WE ARE ALL SINGING FROM THE SAME SONG SHEET NOW AS A RESULT COMMUNICATIONS HAVE IMPROVED NOT JUST WITH THE CUSTOMERS BUT WITHIN THE FIRM IMPROVING THE STAFF'S ABILITY TO COMMUNICATE HAS DRIVEN OUT FEAR HIS EIGHTH POINT BROKEN DOWN BARRIERS BETWEEN DEPARTMENTS HIS NINTH AND MADE POSSIBLE OTHER INNOVATIONS FOR EXAMPLE WE HAVE ROUND TABLE DISCUSSIONS EVERY MONTH IN WHICH ALL EMPLOYEES PARTICIPATE ANY TOPIC IS FAIR GAME FROM FINANCES TO PROBLEMS IN PRODUCTION IF WE HAD TRIED SUCH A THING BEFORE OUR COMMUNICATION SKILLS WERE IMPROVED PEOPLE COULD HAVE RETREATED INTO DEFENSIVENESS AND TURF PROTECTION AND NOTHING WOULD EVER HAVE CHANGED THE PEER REVIEW PROCESS IS ANOTHER INNOVATION MADE POSSIBLE BY IMPROVED COMMUNICATIONS IN YEARS PAST WHEN SOMEONE WANTED A RAISE HE WOULD COME BEFORE HIS MANAGER AND PRESENT HIS CASE NOW BEFORE HIS SITUATION IS EVEN REVIEWED THERE ARE CERTAIN CRITERIA TO BE MET PAY REVIEWS ARE LINKED TO GOALS MET ON THE JOB AS WELL AS THE NUMBER OF SEMINARS ATTENDED OR BOOKS READ THE EMPLOYEE FILLS OUT A FORM AND SUBMITS IT TO HIS SUPERVISOR AND ONE OR TWO PEOPLE HE WORKS CLOSELY WITH THEN THE GROUP SITS TOGETHER AND EVALUATES THE APPROPRIATENESS OF A RAISE IT PUTS THE BURDEN OF RESPONSIBILITY ON THE EMPLOYEE TO DEMONSTRATE THAT A RAISE IS WARRANTED HE DOESN'T GET IT BY DEFAULT SO THAT WE DON'T BECOME TOO HIDEBOUND IN ALL OUR PROGRAMS WE ALSO HAVE AN EXCEPTION TO THE RULE PROGRAM IF THERE IS A REQUEST TO BREAK WITH COMPANY RULES EVERYONE HAS TO VOTE ON IT I THINK THIS IS THE FINEST FLOWER OF MR DEMING'S THINKING HE DIDN'T WANT TO ENSLAVE BUSINESS TO THE RULES BUT TO FREE IT TO CREATIVELY MEET CHALLENGES WHILE MAKING PROFITS MR GORDON IS THE PRESIDENT OF IPD CO A PORTLAND ORE MANUFACTURER OF AUTOMOTIVE PARTS SEE RELATED ARTICLE DEMING'S NOT FOR US WSJ JAN 31 1994 SEE RELATED LETTER CREATIVE DESTRUCTION VS DEMING'S VISION WSJ FEB 22 1994 9401310049 YY94 MM02 9402220046 940131 MANAGER'S JOURNAL A LASTING LEGACY FOR MANAGERS DEMING'S NOT FOR US BY WILLIAM G LEE JAPAN INC GIVES MUCH CREDIT FOR ITS POSTWAR BOOM TO W EDWARDS DEMING THE PIONEERING QUALITY MANAGEMENT GURU BUT HIS RECENT DEATH AT AGE 93 THE DEEP RECESSION IN JAPAN AND THE STIFF NEW PRESSURES FACING AMERICAN BUSINESS NOW SUGGEST THAT WE TAKE STOCK MUCH OF MR DEMING'S LEGACY IS DESERVEDLY SECURE HE BELIEVED IN BUILDING QUALITY INTO PRODUCTS RATHER THAN INSPECTING FOR IT LATER IN TREATING WORKERS AS ASSETS AND IN ENGAGING THEIR MINDS AS WELL AS THEIR HANDS IN JAPAN HIS METHODS HELPED TURN MANY COMPANIES INTO RICH GLOBAL PLAYERS BUT MR DEMING'S PHILOSOPHY ALWAYS SEEMED MORE APPLICABLE TO THE JAPANESE LOCKSTEP STYLE OF MANAGEMENT HE EXUDED THE AURA OF A GURU URGED THAT HIS SYSTEM BE ENTHRONED AS AN INSTITUTION IN EVERY ORGANIZATION AND BROOKED NO DISSENT FROM HIS EXECUTIVEDISCIPLES SUCH AN APPROACH TENDS TO STIFLE SKEPTICAL CONTENTIOUS AND INDEPENDENTMINDED AMERICAN WORKERS FLORIDA POWER & LIGHT FOR INSTANCE WENT FOR THE DEMING PRIZE AND WON IT IN 1989 BUT THE UTILITY INFLICTED MAJOR DAMAGE ON ITS CULTURE IN THE PROCESS AND WOUND UP DISMANTLING MUCH OF ITS QUALITY PROGRAM THE REASON IT HAMPERED THOUGHT INNOVATION AND MEANINGFUL RESULTS WHILE ENCOURAGING GROUPTHINK EXECUTIVE MEDDLING AND DOGMATIC FAITHFULNESS TO QUALITY PROCESSES AT THE EXPENSE OF CORPORATE PERFORMANCE ONE QUALITY TEAM DUTIFULLY APPLIED MR DEMING'S ELABORATE SEVENSTEP DECISIONMAKING PROCESS TO MOVE A WATER COOLER MR DEMING'S SYSTEM STARTS BY COMPREHENSIVELY TRAINING EVERYONE IN THE ORGANIZATION IN HIS METHODS PERFORMANCE IMPROVEMENTS MIGHT TAKE YEARS TO HAPPEN A TROUBLED PHILADELPHIA ELECTRIC GENERATING STATION SOUGHT FAST IMPROVEMENT INSTEAD BY ESCHEWING THE DEMING APPROACH AND FORMING AUTONOMOUS TEAMS THAT HUNTED FOR SELFEVIDENT PROBLEMS TO FIX SUCH AS LEAKY VALVES AND DRAFTY FURNACES THEY GAINED CONFIDENCE NOT FROM INDOCTRINATION BUT FROM TANGIBLE SUCCESS THEY INVENTED A NUMBER OF HIGHLY CREATIVE PROCESSES THAT NO TRAINING PROGRAM COULD TEACH AND DOUBLED THE ORIGINAL SAVINGS GOAL A ONCE TRADITIONBOUND AND HIERARCHAL ORGANIZATION WAS LOOSENED UP AND IS NOW MORE FLEXIBLE AND OPEN TO CHANGE COMPANIES THAT GO OVERBOARD ON DEMINGISM OFTEN SUFFER LIKE FP&L FROM TOPDOWN MEDDLING GENERAL ELECTRIC COMBATS THAT WITH WORK OUT MEETINGS DESIGNED BY CHAIRMAN JACK WELCH TO FOSTER LOCAL SOLUTIONS TO PROBLEMS WORKERS AT GE CONFRONT THEIR BOSSES OPENLY IN TOWN HALL MEETINGS MAKING FREEWHEELING SUGGESTIONS GETTING DECISIONS ON THE SPOT AND THEY GET RESULTS FOR EXAMPLE WHEN EMPLOYEES AT A SCHENECTADY TURBINE PLANT COMPLAINED ABOUT ITS MILLING MACHINES THEY GOT AUTHORIZATION TO TEST APPROVE AND PURCHASE 20 MILLION OF REPLACEMENTS CYCLE TIME FOR MILLING STEEL DROPPED 80 CUTTING INVENTORY COSTS AND BOOSTING CUSTOMER RESPONSIVENESS NONE OF THIS DETRACTS FROM MR DEMING'S ACHIEVEMENTS BUT NO THEORY OR SYSTEM CAN FULLY ACCOUNT FOR SOMETHING AS COMPLEX AS A HUMAN ORGANIZATION COMPANIES LIKE GE APPEAR WELL POISED TO SUCCEED NOT BECAUSE OF THEIR DEVOTION TO ANY MANAGEMENT SYSTEM BUT BECAUSE THEY BUILD ON DISTINCTLY AMERICAN INSTITUTIONS MR LEE IS HEAD OF A DALLASBASED CONSULTING FIRM SEE RELATED ARTICLE DEMING'S REMARKABLE VISION WSJ JAN 31 1994 SEE RELATED LETTER CREATIVE DESTRUCTION VS DEMING'S VISION WSJ FEB 22 1994 9401310047 YY94 MM02 9402180195 940218 CORPORATE FOCUS AS MARKETPLACE SHIFTS US SURGICAL NEEDS PATCHING UP CHANGED HOSPITAL PACTS CUTTHROAT RIVALRY SUTURES GAMBLE CAUSE PROBLEMS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL ANYONE WONDERING WHY US SURGICAL CORP THE HOTTEST COMPANY IN THE HOSPITALSUPPLY SECTOR ONLY TWO YEARS AGO IS IN A PRECARIOUS FINANCIAL POSITION MIGHT GO TO MEMPHIS TENN THERE BAPTIST MEMORIAL HEALTH CARE SYSTEM A 2 MILLIONAYEARACCOUNT FOR US SURGICAL RECENTLY SET NEW GROUND RULES FOR THEIR RELATIONSHIP INSTEAD OF SUPPLYING THE SYSTEM'S 16 HOSPITALS INDIVIDUALLY THE COMPANY MUST DEAL THROUGH BAPTIST'S DISTRIBUTOR THE DISTRIBUTOR ALLOWS US TO DRASTICALLY REDUCE INHOUSE INVENTORIES AND HELPS US TRACK OUR PURCHASING PRACTICES SAID ROBERT JONES ASSISTANT ADMINISTRATOR FOR PURCHASING AT BAPTIST IT ALSO MEANS ALL 16 HOSPITALS PAY THE SAME PRICE THE NEW ARRANGEMENTS MEAN THE HOSPITAL SYSTEM WILL SAVE 250000 A YEAR ON ITS US SURGICAL ACCOUNT ALONE FOR THE NEXT FIVE YEARS THIS SHIFT IS JUST ONE OF THE FORCES IN THE MARKETPLACE THAT HAVE COME TOGETHER TO SHAKE UP US SURGICAL OTHER FORCES HAVE BEEN CUTTHROAT COMPETITION FROM ARCHRIVAL JOHNSON & JOHNSON US SURGICAL'S EXPENSIVE GAMBLE IN THE SUTURES MARKET AND AN UNPREDICTED SLOWDOWN IN THE GROWTH OF THE MARKET FOR ITS MINIMALLY INVASIVE SURGICAL GEAR THE COMPANY'S STOCK FELL A FURTHER 3 OR 14 TO CLOSE AT 1850 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ON WEDNESDAY THE STOCK PLUNGED 21 AFTER US SURGICAL ANNOUNCED IT WAS RENEGOTIATING LOAN AGREEMENTS WITH ITS BANKS AND HAS ENLISTED INVESTMENT BANKERS TO SEEK EQUITY INVESTORS THE COMPANY SAID IT EXPECTED TO REPORT A LOSS OF 26 CENTS A SHARE FOR LAST YEAR'S FOURTH QUARTER ON SALES OF 244 MILLION ON TOP OF THAT THE COMPANY SAID IT HAD LOST A PATENT SUIT IT HAD FILED AGAINST JOHNSON & JOHNSON'S ETHICON DIVISION LEON HIRSCH THE COMPANY'S FOUNDER AND CHAIRMAN WAS SAID TO BE TRAVELING OUT OF THE COUNTRY YESTERDAY AND UNAVAILABLE TO COMMENT A COMPANY SPOKESWOMAN CLARIFIED ITS RELATIONSHIP WITH ITS LENDERS CONTRARY TO A STATEMENT IN YESTERDAY'S WALL STREET JOURNAL THE COMPANY IS NOT AND HAS NOT BEEN IN VIOLATION OF ANY LOAN COVENANT AND IS NOT IN DEFAULT UNDER ANY LOAN SAID MARIANNE SCIPIONE VICE PRESIDENT CORPORATE COMMUNICATIONS EVEN AS THE COMPANY STRUGGLES TO STABILIZE ITS ROCKY FINANCIAL SITUATION HOWEVER IT'S THE BATTLE IN THE MARKETPLACE THAT WILL DETERMINE ITS FUTURE I'M LESS CONCERNED ABOUT THE FINANCIAL STRUCTURE ISSUES AND MORE CONCERNED ABOUT GENERATING SALES SAID KURT KRUGER AN ANALYST AT HAMBRECHT & QUIST IF THEY CLEAR THOSE FINANCIAL MATTERS UP BUT HAVEN'T RESUMED SALES GROWTH THE COMPANY WON'T BE FIXED FOR ITS PART THE NORWALK CONN COMPANY ACKNOWLEDGED THAT CHANGES IN HOSPITALPURCHASING POLICIES AND ETHICON'S AGGRESSIVE PRICING HAVE PROVOKED MANY OF ITS MARKETING TROUBLES BUT MS SCIPIONE SAID THE COMPANY BELIEVES ITS MARKET SHARE FOR ENDOSCOPIC GEAR USED IN MINIMALLY INVASIVE SURGERY IS HIGHER THAN THE 55 TO 60 ESTIMATED BY WALL STREET SHE SAID THAT IN THE THIRD QUARTER ITS SHARE ROSE TO 676 FROM 667 IN THE SECOND QUARTER IT WASN'T A BIG INCREASE BUT IT SHOWED US THAT THE TREND DOWNWARD HAS STOPPED SHE SAID FOURTHQUARTER MARKET SHARE NUMBERS WON'T BE AVAILABLE FOR TWO MORE MONTHS ANALYSTS AND CUSTOMERS ALIKE AGREE THAT US SURGICAL THRIVED THANKS TO INNOVATIVE PRODUCTS ITS DEVICES IN THE LATE 1980S ESSENTIALLY CREATED THE MARKET FOR SOCALLED LAPAROSCOPIC GALLBLADDER SURGERY WHICH INVOLVES ONLY A TINY INCISION IN THE ABDOMEN AND ITS SALES FORCE BECAME KNOWN FOR ITS AGGRESSIVE TACTICS AND FOR DEALING DIRECTLY WITH PHYSICIANS BUT ETHICON HAS SIGNIFICANTLY NARROWED A QUALITY GAP AND PRICED ITS OWN PRODUCTS SO AGGRESSIVELY THAT MANY HOSPITALS HAVE BEEN PERSUADED TO TRY THE ETHICON BRANDS AT THE SAME TIME CHANGING PURCHASING PRACTICES OF HOSPITALS AND ESPECIALLY HUGE HOSPITALPURCHASING ORGANIZATIONS HAVE BLUNTED THE IMPACT OF A SALES FORCE SKILLED AT DEALING WITH DOCTORS WITHIN THE HOSPITAL THE ADMINISTRATOR NOW CARRIES MORE WEIGHT SAID GLENN REICIN AN ANALYST AT MORGAN STANLEY & CO HE SAID THAT WHILE DOCTORS STILL HAVE SOME INFLUENCE OVER PRODUCT PURCHASES THEY HAVEN'T BEEN WILLING TO COME OUT AND FIGHT FOR SURGICAL IN PART BECAUSE ETHICON HAS IMPROVED ITS PRODUCTS INDIVIDUAL HOSPITALS INCREASINGLY ARE PURCHASING ENDOSCOPIC GEAR THROUGH BIG PURCHASING ALLIANCES SUCH AS VOLUNTARY HOSPITALS OF AMERICA OF IRVING TEXAS AND AMERICAN HEALTH CARE SYSTEMS SAN DIEGO VHA HAS 950 HOSPITALS AS MEMBERS AMERICAN HEALTH CARE HAS ABOUT 1000 AND BOTH HAVE FIVEYEAR CONTRACTS WITH ETHICON BUT NOT WITH US SURGICAL THESE CONTRACTS DON'T REQUIRE MEMBERS TO PURCHASE ONLY ETHICON EQUIPMENT BUT THE FINANCIAL INCENTIVES ENCOURAGE SUCH PRACTICES OUR BUSINESS WITH J&J HAS GROWN EXPONENTIALLY FROM ZERO DOLLARS A YEAR AND HALF AGO TO A VERY SUBSTANTIAL FIGURE SAID MONROE TROUT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN HEALTH CARE THE COMPANY'S BET THAT IT COULD MAKE INROADS INTO THE MARKET FOR SURGICAL SUTURES DOMINATED BY J&J HAS PROVED AN EXPENSIVE GAMBLE THAT HAS YET TO PAY OFF ANALYSTS SAID BOTH THE INVESTMENT IN MANUFACTURING FACILITIES AND HUGE INVENTORIES NECESSARY TO EFFECTIVELY MARKET THE SUTURES HAVE BEEN A BIG FINANCIAL STRAIN SAID MR KRUGER AND SALES HAVE BEEN SMALL IT WAS THE SUTURES THAT GOT THEM INTO FINANCIAL PROBLEMS HE MAINTAINED IT'S AN INVENTORY GAME AND A DISTRIBUTIONCHANNELS GAME THAT THEY WERE PREPARED TO TAKE ON AGAINST ETHICON THE COMPANY'S MARKET SHARE REMAINS IN SINGLE DIGITS HE SAID THEY'RE NOT EVEN IN THE GAME YET MR KRUGER SAID MS SCIPIONE DECLINED TO COMMENT ON THE SUTURE ISSUE EXCEPT TO SAY WE'RE QUITE PLEASED WITH THE WAY OUR SUTURE BUSINESS IS GOING ON TOP OF EVERYTHING ELSE THE COMPANY HAS BEEN HIT BY A SLOWERTHANEXPECTED ADOPTION BY DOCTORS OF MINIMALLY INVASIVE SURGICAL TECHNIQUES FOR OPERATIONS OTHER THAN GALL BLADDERS SURGEONS EMBRACED THE TECHNIQUE FOR GALL BLADDERS AT BREATHTAKING SPEED BECAUSE THE SHORTER HOSPITAL STAY AND SHORT RECOVERY PERIOD WERE A BOON TO BOTH PATIENTS AND COSTCONSCIOUS PAYERS AFTER ABOUT THREE YEARS ON THE MARKET THE TECHNIQUE WAS USED ON MORE THAN 80 OF THE 550000 GALL BLADDERS TAKEN OUT EACH YEAR BOTH US SURGICAL AND ANALYSTS EXPECTED EQUALLY QUICK ADOPTION OF THE TECHNIQUE FOR OTHER HIGHVOLUME OPERATIONS SUCH AS HERNIA REPAIR AND HYSTERECTOMY BUT PHYSICIANS' RETICENCE AND THE RELUCTANCE OF SOME INSURERS TO COVER THE NEW TECHNIQUES TEMPERED WIDE USE OF THE PROCEDURES MEANWHILE CUSTOMERS ARE BEGINNING TO MAKE NEW DEMANDS ON SUPPLIERS LIKE US SURGICAL WE WANT SUPPLIERS TO HELP US IMPROVE PRODUCTIVITY SAID SAMUEL A GRECO SENIOR VICE PRESIDENT FINANCIAL OPERATIONS AT COLUMBIA/HCA HEALTHCARE CORP LOUISVILLE KY THAT MEANS AMONG OTHER THINGS INSURING PROPER PRODUCT USAGE AND ULTIMATELY DRIVING COSTS OUT OF THE SYSTEM FOR BOTH PURCHASER AND SUPPLIER THAT'S A BIG CULTURE CHANGE FOR US SURGICAL WHICH HAS THRIVED WITH A SALES FORCE TRAINED TO SELL PRODUCTS NOT TO HELP MANAGE HEALTHCARE COSTS 9402180194 940218 INTERNATIONAL WORLD ECONOMY FOREIGN INVESTORS WILLING TO PAY PIPER BUT RUSSIANS INSIST ON CALLING THE TUNE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUSSIA IS RIFE WITH ENOUGH CRIME CORRUPTION AND CONFUSION TO DISSUADE ALL BUT THE BRAVEST FOREIGN INVESTORS BUT SOME WHO DECIDE TO PLUNGE IN ANYWAY CAN MEET A MORE DAUNTING OBSTACLE THEY AREN'T REALLY WANTED IN THE FIRST PLACE THIS MAY SEEM ODD IN A HUGE NATION SO RICH IN RESOURCES YET DESPERATELY SHORT OF MODERN TECHNOLOGY CAPITAL AND ORGANIZATIONAL SKILLS MAKING TROUBLE FOR OTHERWISE WILLING INVESTORS CAN DELAY THE CREATION OF WEALTH NEEDED TO PULL RUSSIA OUT OF ITS ECONOMIC MESS YET IT HAPPENS FOR REASONS RANGING FROM PHILOSOPHICAL TO MERCENARY FOREIGN INVESTORS CAN FIND THEIR EFFORTS TO DEVELOP RUSSIAN RESOURCES AND SHARE THE WEALTH HINDERED OR EVEN BLOCKED THIS IS PARTICULARLY TRUE IN THE ENERGY BUSINESS WHERE OFFICIALS KNOWN AS THE OIL AND GAS GENERALS DON'T WANT TO CEDE CONTROL TO NEWCOMERS ESPECIALLY FOREIGNERS SUCH IS THE CASE IN OTHER AREAS THAT INVOLVE NATURAL RESOURCES AND LARGE ENTERPRISES LEFT OVER FROM SOVIET DAYS SUCH AS MINING AND FOOD PROCESSING IT'S ALMOST AS IF THEY WERE SAYING WE DON'T WANT YOU THERE SO GIVE US THE MONEY AND GO AWAY SAYS MARSHALL GOLDMAN A HARVARD SPECIALIST ON RUSSIA'S ECONOMY THIS ECHOES AN OLD ATTITUDE BEGINNING IN THE 1830S INTELLECTUALS KNOWN AS THE SLAVOPHILES TRIED TO TURN RUSSIA INWARD SEEKING NATIONAL SALVATION IN HISTORICAL VALUES AND TRADITIONS THEY THOUGHT THE WESTWARD BENT OF PETER THE GREAT AND HIS SUCCESSORS SUBVERTED THE VERY ESSENCE OF MOTHER RUSSIA THEY HAVE MODERN COUNTERPARTS SOME RUSSIANS SEE NO REASON WHY A NATION THAT PUT MEN INTO SPACE NEEDS FOREIGNERS TO RUN ITS HOTELS AND FACTORIES THIS NATIVIST STREAK HELPED EXTREMIST POLITICIANS DO SO WELL IN THE LAST RUSSIAN ELECTIONS BUT MUCH OF WHAT'S HAPPENING TODAY ALSO INVOLVES EXTREMIST TURF PROTECTION MANAGERS WHO CONTROL INDUSTRIES THAT PERFORM MODERATELY WELL AND EARN FOREIGN EXCHANGE PARTICULARLY OIL GAS AND MINING ENJOY GREAT POWER AND WEALTH IN A NATION STRUGGLING TO AVOID CHAOS SO THEY DON'T WANT TO GIVE OVER SAY 50 SHARES TO OUTSIDERS NO MATTER HOW MUCH THAT MIGHT ENRICH THEIR OPERATIONS THE ISSUE IS IMPORTANT FOR EXAMPLE THE WORLD BANK ESTIMATES RUSSIA NEEDS TO INVEST 50 BILLION OVER THE NEXT FEW YEARS JUST TO KEEP OIL PRODUCTION AT CURRENT LEVELS AND MUCH MORE IF OUTPUT AND EXPORTS ARE TO RISE AND PART MUST COME FROM PRIVATE INVESTORS OR LENDERS OTHER AVAILABLE RESOURCES CAN'T PAY THE BILLS YET IF EXISTING ENTERPRISES MAKE LIFE UNBEARABLE FOR INVESTORS OR DON'T EVEN LET THEM IN THESE BASIC INDUSTRIES WILL SUFFER AND SO WILL RUSSIA ITSELF AS DURING 19TH CENTURY QUARRELS BETWEEN SLAVOPHILES AND WESTERNIZERS THERE ARE DISPUTES TODAY WITHIN ALMOST EVERY ORGANIZATION ABOUT HOW MUCH FOREIGN PARTICIPATION TO ALLOW FOREIGNERS INVOLVED THERE SAY CURRENTLY THE WESTERNIZERS OR REFORMERS ARE LOSING AND NO ONE KNOWS EXACTLY WHERE POLICIES OF THE NEW MOSCOW GOVERNMENT WITH A FORMER GAS GENERAL AS PRIME MINISTER MAY LEAD I CAN'T STAY ON IN THIS POST BECAUSE I HAVE ALWAYS TRIED TO DEFEND RUSSIA'S NATIONAL INTERESTS AND NOT THE INTERESTS OF A SMALL GROUP OF STATEFARM BARONS' AND FUEL AND ENERGYINDUSTRY GENERALS' ONE REFORMER SAID WHEN HE RESIGNED RECENTLY PETROCANADA OF CALGARY ALBERTA IS ONE COMPANY THAT RAN INTO TROUBLE IN 1990 IT JOINED A RUSSIAN PARTNER TO UPGRADE A SIBERIAN OIL FIELD ONLY TO SEE ALMOST EVERYTHING GO WRONG ABOVE ALL LOCAL AUTHORITIES REFUSED TO HONOR THE CONTRACT AND SHIFTED TWOTHIRDS OF THE FIELD INTO FRIENDLY RUSSIAN HANDS OTHER FACTORS ALSO WERE INVOLVED BUT PETROCANADA CLOSED ITS MOSCOW OFFICE FOR GOOD DEC 31 AND CAME HOME POORER THE HEART OF ANY DEAL IS CONTROL SAYS A COMPANY OFFICIAL THE OLD GENERALS HAVE PEOPLE AND POWER AND MONEY AND THEY'RE STILL THERE NOT EVERYONE HAS SIMILAR PROBLEMS OF COURSE THOSE DEVELOPING NEW OIL FIELDS FOR EXAMPLE DON'T FACE SUCH ENTRENCHED INTERESTS DUPONT CO'S CONOCO INC UNIT EXPECTS A NORTH RUSSIAN FIELD TO PAY OFF IF MOSCOW LIFTS AN ONEROUS OILEXPORT TAX AS PROMISED BUT MANY FACE MANMADE OBSTACLES WHICH MEANS CLOSURE IS AN ACTIVE OPTION WITH CONSISTENT AND SUSTAINED REFORMS SAYS A WESTERN BANKING OFFICIAL RUSSIA COULD ATTRACT ENORMOUS AMOUNTS OF PRIVATE CAPITAL BUT THIS COULD MEAN SOME LOSS OF OPERATIONAL CONTROL AND SO FAR HE ADDS THE RUSSIANS ARE NOT WILLING TO EMBRACE THIS 9402180193 940218 WHO'S NEWS VIGORO CORP VIGORO CORP CHICAGO DONALD F MAZANKOWSKI MOST RECENTLY CANADA'S MINISTER OF FINANCE WAS ELECTED A DIRECTOR OF THIS PRODUCER AND DISTRIBUTOR OF POTASH FERTILIZERS AND RELATED PRODUCTS INCREASING BOARD MEMBERSHIP TO 13 9402180192 940218 ETHYL UNVEILS DETAILS OF PLAN TO SPIN OFF ITS ALBEMARLE UNIT RICHMOND VA ETHYL CORP ANNOUNCED SPECIFICS OF ITS PLAN TO SPIN OFF ITS WHOLLY OWNED CHEMICALS SUBSIDIARY ALBEMARLE CORP WHOSE PRODUCTS INCLUDE BROMINE CHEMICALS OLEFINS AND DERIVATIVES ETHYL SHAREHOLDERS OF RECORD FEB 28 WILL RECEIVE ONE SHARE OF ALBEMARLE FOR EACH TWO SHARES OF ETHYL COMMON STOCK WITH CERTIFICATES TO BE MAILED MARCH 10 ALBEMARLE WILL HAVE ITS EXECUTIVE OFFICES IN RICHMOND AND ADMINISTRATIVE OFFICES IN BATON ROUGE LA AND ITS SHARES WILL BE TRADED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL ALB ETHYL SAID IT HAS RECEIVED A RULING FROM THE INTERNAL REVENUE SERVICE THAT THE SPINOFF WILL BE TAXFREE TO ETHYL AND ITS SHAREHOLDERS ALBEMARLE'S 1993 SALES WERE 903 MILLION IT WILL OPERATE MANUFACTURING PLANTS IN ARKANSAS SOUTH CAROLINA TEXAS BELGIUM AND FRANCE WITH RESEARCH AND DEVELOPMENT FACILITIES IN LOUISIANA BELGIUM AND FRANCE FLOYD D GOTTWALD JR CURRENTLY CHAIRMAN OF ETHYL WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ALBEMARLE DR E GARY COOK CURRENTLY A SENIOR VICE PRESIDENT OF ETHYL AND PRESIDENT OF THE CHEMICALS GROUP WILL BE ALBEMARLE'S PRESIDENT AND CHIEF OPERATING OFFICER ETHYL'S REMAINING BUSINESSES WILL INCLUDE FUEL AND LUBRICANT ADDITIVES PRODUCED AT PLANTS IN ILLINOIS MISSISSIPPI SOUTH CAROLINA TEXAS BELGIUM CANADA AND JAPAN ETHYL ALSO WILL CONTINUE TO OWN WHITBY INC A RICHMOND PHARMACEUTICAL MARKETER ETHYL'S REMAINING BUSINESSES HAD 1993 SALES OF 103 BILLION WITH ASSETS OF 920 MILLION AND ABOUT 1700 EMPLOYEES BRUCE C GOTTWALD CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ETHYL WILL BECOME CHAIRMAN AND CEO OF THE CONTINUING ETHYL WHILE THOMAS E GOTTWALD CURRENTLY AN ETHYL VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S PETROLEUM ADDITIVES DIVISION WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER 9402180191 940218 MEDIARESEARCH FIRMS ENTERING CHINA TO RANK VIEWERSHIP OF TV PROGRAMS BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG INTERNATIONAL MEDIARESEARCH FIRMS ARE STEPPING UP THEIR ACTIVITIES IN CHINA IN AN INTERVIEW THIS WEEK FRANK POLASHOCK A MANAGING DIRECTOR OF DUN & BRADSTREET CORP'S AC NIELSEN CO SAID HE PLANS TO SIGN AGREEMENTS OVER THE NEXT THREE WEEKS WITH 30 OF CHINA'S TOP TELEVISION STATIONS THOSE ACCORDS MR POLASHOCK SAYS WILL LEAD TO THE FORMATION OF A NATIONAL SERVICE IN CHINA TO RATE PROGRAMS IN TERMS OF THE NUMBER OF VIEWERS THEY ATTRACT AT PRESENT MOST RATINGS IN CHINA ARE PROVIDED BY INDIVIDUAL TELEVISION STATIONS THAT HAS RAISED CONCERNS AMONG ADVERTISING EXECUTIVES ABOUT THE RELIABILITY AND CONSISTENCY OF THE DATA IN AN EFFORT TO FILL THAT GAP SEVERAL INTERNATIONAL MARKETRESEARCH FIRMS HAVE ENTERED THE MARKET FRANK SMALL & ASSOCIATES LTD BASED IN SYDNEY AUSTRALIA TRACKS MEDIA HABITS IN CHINA ON AN AD HOC BASIS IN MARCH HOWEVER IT WILL RELEASE THE FIRST MONTHLY RESULTS OF ITS NEW COMPREHENSIVE STUDY OF CONSUMER HABITS WHICH INCLUDES TV VIEWING SURVEY RESEARCH GROUP BASED IN HONG KONG MEASURES GENERAL TV VIEWING PRINT READERSHIP ADVERTISING SPENDING AND SALES OF CONSUMER GOODS IN CHINA'S MAJOR CITIES IT WILL RELEASE RESULTS OF A FOURWEEK STUDY OF SHANGHAI TVVIEWING HABITS WITHIN THE NEXT TWO WEEKS NIELSEN'S MR POLASHOCK SAID HE EXPECTS THE INTRODUCTION OF A NATIONAL RATINGS SERVICE WILL LEAD TO A SHARP INCREASE IN AD SPENDING IN CHINA BY AMERICAN AND EUROPEAN COMPANIES HE ARGUED THAT A RELIABLE AND INDEPENDENT SOURCE OF DATA WILL MAKE ADVERTISERS MORE COMFORTABLE WITH THE MARKET MANY ADVERTISING AND MARKETING EXECUTIVES IN HONG KONG DISAGREE THAT'S TOTALLY OFF THE MARK SAYS RON CROMIE GENERAL MANAGER OF THE CHINA DIVISION OF WPP GROUP PLC'S J WALTER THOMPSON CO CLEARLY ALREADY INTERNATIONAL BRANDS ARE BEING FAIRLY HEAVILY ADVERTISED IN CHINA PARTICULARLY FASTMOVING CONSUMER GOODS ALL THE MORE REASON FOR THE RATINGS SERVICE HE SAYS BUT I DON'T THINK A LACK OF A RATINGS SERVICE HAS KEPT PEOPLE BACK FROM SPENDING AS CHINA'S ECONOMY HAS BOOMED IN RECENT YEARS AD SPENDING HAS BALLOONED SURVEY RESEARCH ESTIMATES THAT 115 BILLION WAS SPENT BY LOCAL AND INTERNATIONAL COMPANIES TO ADVERTISE THEIR GOODS AND SERVICES IN CHINA IN 1993 UP 400 FROM 1989 SAATCHI & SAATCHI CO PREDICTS THAT AD SPENDING IN CHINA WILL MUSHROOM ANOTHER 72 BY 1996 ALREADY AD SPENDING IS GROWING FASTER IN CHINA THAN ANYWHERE ELSE IN THE WORLD 9402180190 940218 YOUR MONEY MATTERS WEEKEND REPORT THERE'S STILL HOPE FOR THOSE WHO CAN'T PAY BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL TAX TIME IS HARD ENOUGH FOR MOST PEOPLE BUT EVEN THINKING ABOUT WHAT YOU OWE UNCLE SAM CAN BE ALMOST TOO MUCH TO BEAR IF YOU KNOW YOU CAN'T PAY IT A DIVORCE A SERIOUS ILLNESS A BUSINESS FAILURE OR LAYOFF CAN DECIMATE AN INDIVIDUAL'S FINANCES LEAVING NO MONEY TO PAY TAXES BUT FOR MANY PEOPLE WHOSE BACKS ARE AGAINST THE WALL THERE IS SOME GOOD NEWS FACED WITH AN ESTIMATED 75 MILLION AMERICANS WHO SHOULD BUT DON'T FILE INCOME TAX RETURNS THE INTERNAL REVENUE SERVICE IS INCREASINGLY WILLING TO MAKE A DEAL I FEEL THE PRESSURE IS GONE AND I CAN START LIVING AGAIN SAYS DAWN MOTON A 50YEAROLD COMPUTER SPECIALIST FROM COLUMBUS OHIO LAST NOVEMBER SHE SETTLED AN IRS CLAIM OF 124000 IN TAXES AND PENALTIES FOR 14000 I HAD TO PROVE I COULDN'T TAKE OUT A LOAN ON MY LIFE INSURANCE AND THAT I DIDN'T HAVE A 401K PLAN TO TAKE MONEY OUT OF SHE SAYS BUT IT WAS WORTH IT MS MOTON WHO FOUND HERSELF IN TROUBLE BECAUSE OF BAD TAXSHELTER INVESTMENTS MADE USE OF AN IRS PROCEDURE CALLED AN OFFERINCOMPROMISE SUCH OFFERS ARE FOR PEOPLE WHO HAVE RACKED UP LARGE TAX DELINQUENCIES AND HAVE DIM HOPES OF EVER GETTING THE MONEY TO PAY THE IRS FOR MANY OTHER TAXPAYERS THE IRS HAS A SIMPLER PROCEDURE THAT ALLOWS USE OF INSTALLMENT PAYMENTS IN THE FISCAL YEAR ENDED SEPT 30 1993 25 MILLION AMERICANS PAID THEIR TAXES BY INSTALLMENT AGREEMENT ALMOST DOUBLE THE NUMBER IN FISCAL 1992 IF YOUR TAX BILL IS UNDER 10000 AND YOU CAN'T PAY IT ALL YOU HAVE TO DO IS FILL OUT ONEPAGE FORM 9465 INSTALLMENT AGREEMENT REQUEST AND ATTACH IT TO YOUR TAX RETURN THE IRS PROMISES TO RESPOND WITHIN 30 DAYS IF YOU OWE MORE THAN 10000 YOU'LL HAVE TO FILL OUT A FINANCIAL STATEMENT AND PROVIDE MORE DOCUMENTATION THE IRS USUALLY ALLOWS PAYMENTS TO GO ON FOR TWO OR THREE YEARS IF THE TAX OWED IS UNDER 10000 ACCOUNTANTS SAY THE IRS SAYS THE AVERAGE INSTALLMENT AGREEMENT RUNS ONE TO 1 1/2 YEARS WHEN YOU PAY IN INSTALLMENTS INTEREST AND PENALTIES ON THE UNPAID TAX CONTINUE TO ACCUMULATE INTEREST CURRENTLY RUNS 7 ANNUALLY AND THEN THERE IS THE LATE PENALTY WHICH IS 05 A MONTH FOR A TOTAL OF 13 THE PENALTY FOR NOT FILING AN INCOME TAX FORM IS 5 A MONTH UP TO A TOTAL MAXIMUM OF 25 BECAUSE OF THE COSTS IT MAY MAKE MORE SENSE FOR TAXPAYERS WHO CAN DO SO TO GET A LESS EXPENSIVE HOMEEQUITY LOAN OR TO BORROW AGAINST STOCKS AND BONDS YOU'RE USUALLY BETTER OFF THAT WAY SAYS ROBERT A LABAUBE DIRECTOR OF IRS PROBLEM RESOLUTION FOR ACCOUNTANTS COOPERS & LYBRAND IN WASHINGTON BUT IF YOUR BACK TAXES ARE SO LARGE THAT YOU'RE NEVER GOING TO BE ABLE TO PAY THEM OFF IT'S WORTHWHILE FILING FOR AN OFFERINCOMPROMISE THE NUMBER OF OFFERS FILED INCREASED TO 40843 IN THE FIRST 10 MONTHS OF THE 1993 FISCAL YEAR MORE THAN DOUBLE THE NUMBER FILED IN ALL OF FISCAL 1992 ACCORDING TO THE IRS YOU GENERALLY HAVE MORE THAN A 5050 CHANCE OF GETTING YOUR OFFER APPROVED BUT ACCEPTANCE RATES VARY WIDELY AMONG THE IRS'S 63 DISTRICTS ACCORDING TO IRS FIGURES PROVIDED FOR THE GENERAL ACCOUNTING OFFICE FOR EXAMPLE THE IRS OFFICE IN LAGUNA NIGUEL CALIF ACCEPTED ONLY 17 OF OFFERS IN FISCAL 1993 WHILE THE IRS OFFICE IN BOISE IDAHO ACCEPTED 79 WHY THE BIG DIFFERENCE DAVID KEATING EXECUTIVE VICE PRESIDENT OF THE NATIONAL TAXPAYERS UNION SAYS IT'S BECAUSE LOCAL IRS OFFICES DEVELOP THEIR OWN CULTURE AND DON'T NECESSARILY FOLLOW NATIONAL IRS POLICY TO THE DEGREE THAT WASHINGTON WANTS THE IRS SAYS THE DIFFERENCE REFLECTS VARIATIONS OF THE QUALITY OF TAXPAYER OFFERS IN DIFFERENT REGIONS HOW MUCH THE IRS WILL SETTLE FOR ALSO VARIES DEPENDING ON THE INDIVIDUAL CASE OVERALL THE IRS SAYS THAT IN THE FIRST 10 MONTHS OF FISCAL 1993 IT SETTLED FOR AN AVERAGE OF 15 OF THE TAX OWED TAX PROS SAY THAT TO GET THE IRS TO ACCEPT YOUR OFFER IT MUST BE FOR MORE MONEY THAN CAN BE REALIZED IF ALL YOUR ASSETS WERE CONVERTED TO CASH IF YOUR MONEY IS IN A BANK ACCOUNT STOCKS OR BONDS OR IN PROPERTY THAT CAN BE SOLD THE GOVERNMENT CAN REACH OUT AND SEIZE IT ANYTIME SO IT DOESN'T NEED TO CUT YOU A SPECIAL DEAL SAYS WILLIAM A ROBERTS A DALLAS ATTORNEY WHO SPECIALIZES IN TAX LITIGATION IF THE IRS ACCEPTS YOUR OFFER THE DOCUMENTS ARE PUBLIC RECORDS FOR ONE YEAR IN ADDITION YOU MUST AGREE NOT TO CONTEST IN COURT OR APPEAL THE AMOUNT OF YOUR TAX SETTLEMENT IF THE OFFER FAILS THE IRS HAS A DETAILED FILE ON YOUR FINANCES YOU MUST ALSO COMPLY WITH ALL INCOME TAX FILING REQUIREMENTS FOR THE NEXT FIVE YEARS IF YOU SLIP UP THE IRS CAN COME BACK TO YOU FOR THE FULL AMOUNT OF YOUR PREVIOUS TAX LIABILITY SAYS DAVID KAYE PARTNER IN KAYE KOTTS & CO A SHERMAN OAKS CALIF FIRM OF ACCOUNTANTS AND ATTORNEYS WHO SPECIALIZE IN RESOLVING TAX SETTLEMENTS WITH SO MUCH AT STAKE IT MAKES SENSE TO ENLIST THE SERVICES OF A PROFESSIONAL ADVISER WHO HAS EXPERIENCE IN DEALING IN TAX CONTROVERSY WITH THE IRS PICK SOMEONE WHO KNOWS THEIR WAY AROUND IRS COLLECTION PROCEDURES SAYS SAMUEL J FRIEDMAN SENIOR PARTNER IN THE NEW YORK LAW FIRM HALL DICKLER LAWLER KENT & FRIEDMAN THE COST OF SUCH DEPENDS ON THE AMOUNT OF THE TAX LIABILITY TIME INVOLVED AND THE COMPLEXITY OF THE CASE MR KAYE SAYS THE AVERAGE FEE FOR FULL SERVICE AT HIS FIRM IS 4500 BUT HE ADDS THAT IT'S POSSIBLE FOR A SIMPLE CASE UNDER 10000 TO BE HANDLED FOR AS LITTLE AS 600 9402180189 940218 RAZALEIGH SAYS HE HAD NO ROLE IN CARRIAN LOANS FORMER MALAYSIAN OFFICIAL DENIES HE INFLUENCED LENDING BY STATE BANK BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA FORMER MALAYSIAN FINANCE MINISTER RAZALEIGH HAMZAH SAID HE PLAYED NO ROLE IN STATEOWNED BANK BUMIPUTRA MALAYSIA BHD'S DISASTROUS LENDING SPREE TO HONG KONG'S CARRIAN GROUP MORE THAN A DECADE AGO TENGKU RAZALEIGH TESTIFYING IN A MALAYSIAN COURT THURSDAY ALSO SAID HE HAD NO RECOLLECTION OF EVER MEETING GEORGE TAN WHO AS CARRIAN'S CHAIRMAN PRESIDED OVER ONE OF THE BIGGEST FINANCIAL COLLAPSES IN HONG KONG'S HISTORY TENGKU RAZALEIGH WAS MALAYSIA'S FINANCE MINISTER WHEN BUMIPUTRA MALAYSIA FINANCE LTD A HONG KONG UNIT OF BANK BUMIPUTRA SUFFERED MASSIVE LOSSES ON BAD LOANS MADE TO CARRIAN GROUP COMPANIES BETWEEN 1979 AND 1983 THE FORMER OFFICIAL'S TESTIMONY THE FIRST HE HAS EVER GIVEN ON THE AFFAIR CAME AT AN EVIDENCEGATHERING HEARING BEFORE MALAYSIAN HIGH COURT JUDGE DATUK ABDUL MANSOR ALI THE EVIDENCE IS TO BE USED AT THE PENDING TRIAL IN HONG KONG OF MR TAN AND A FORMER BANK BUMIPUTRA OFFICER RAIS SANIMAN MR TAN AND MR RAIS FACE HONG KONG GOVERNMENT CHARGES OF CORRUPTION THEFT AND CONSPIRACY TO DEFRAUD RELATED TO FINANCIAL TRANSACTIONS BETWEEN CARRIAN COMPANIES AND BUMIPUTRA MALAYSIA FINANCE KNOWN AS BMF MR TAN CURRENTLY IS FREE ON HK50 MILLION US65 MILLION BAIL PENDING TRIAL MR RAIS WAS EXTRADITED TO HONG KONG FROM FRANCE LAST MONTH TENGKU RAZALEIGH'S TESTIMONY SCHEDULED TO CONTINUE MONDAY IS BEING FOLLOWED CLOSELY IN MALAYSIA THE FORMER MINISTER WHO NOW LEADS A POLITICAL PARTY OPPOSED TO PRIME MINISTER MAHATHIR MOHAMAD HAS PERIODICALLY BEEN THE TARGET OF UNDOCUMENTED ALLEGATIONS THAT HE PLAYED A ROLE IN CHANNELING BMF LOANS TO MR TAN'S COMPANIES AND THAT HE RECEIVED FINANCIAL FAVORS IN RETURN SUCH ALLEGATIONS SURFACED IN THE FINAL DAYS OF A 1990 MALAYSIAN NATIONAL ELECTION CAMPAIGN IN WHICH TENGKU RAZALEIGH'S SEMANGAT '46 OR SPIRIT OF '46 PARTY WAS RUNNING AGAINST DR MAHATHIR'S UNITED MALAYS NATIONAL ORGANIZATION AT THAT TIME PROGOVERNMENT MALAYSIAN NEWSPAPERS AND TELEVISION STATIONS REPORTED ON STATEMENTS AND DOCUMENTS PURPORTING TO LINK TENGKU RAZALEIGH TO MR TAN AND CARRIAN THE MALAYSIAN NEWS ORGANIZATIONS SAID AT THE TIME THAT THE STATEMENTS AND DOCUMENTS WERE PROVIDED BY FORMER BMF CHAIRMAN LORRAIN OSMAN CARRIAN WHICH HAD INTERESTS IN PROPERTY INSURANCE AND SHIPPING COLLAPSED IN LATE 1983 LEAVING DEBTS ESTIMATED AT ABOUT US123 BILLION BMF WAS CARRIAN'S BIGGEST CREDITOR WITH LOANS TO MR TAN'S COMPANIES OF MORE THAN US700 MILLION IN 1984 BANK BUMIPUTRA WROTE OFF ALMOST M1 BILLION US3583 MILLION IN BAD LOANS EFFECTIVELY WIPING OUT ITS TOTAL CAPITAL AND RESERVES IN 1986 AN INDEPENDENT MALAYSIAN GOVERNMENTAPPOINTED PANEL CONCLUDED THAT HIGHRANKING BMF EXECUTIVES HAD JOINED IN A CONCERTED PLAN TO CHANNEL BANK BUMIPUTRA FUNDS TO MR TAN AND CARRIAN THE PANEL'S FINAL REPORT DIDN'T GIVE TENGKU RAZALEIGH A CENTRAL ROLE IN THE AFFAIR BUT THE PANEL NOTED THAT SEVERAL FORMER BANK BUMIPUTRA EXECUTIVES HAD MADE UNDOCUMENTED ORAL ALLEGATIONS THAT TENGKU RAZALEIGH HAD HELPED ARRANGE BMF'S FINANCING FOR MR TAN IN COURT THURSDAY TENGKU RAZALEIGH SAID HE DIDN'T HAVE ANY PART IN OR PRIOR KNOWLEDGE OF BMF'S LENDING TO CARRIAN COMPANIES WHICH BEGAN IN LATE 1979 ANSWERING QUESTIONS FROM THE HONG KONG GOVERNMENT'S ATTORNEY CLIVE NICHOLLS TENGKU RAZALEIGH ADDED THAT HE FIRST LEARNED OF THE MALAYSIAN BANK'S HEAVY EXPOSURE TO CARRIAN GROUP WHEN IT WAS REPORTED IN THE PRESS IN LATE 1982 TENGKU RAZALEIGH DENIED EVER DISCUSSING WITH MR TAN THE SALE OF CARRIANOWNED HONG KONG PROPERTY TO THE MALAYSIAN GOVERNMENT CALLING ANY SUCH SUGGESTION A BLATANT LIE MR NICHOLLS ALSO QUESTIONED TENGKU RAZALEIGH AT LENGTH ON THE PURPORTED DOCUMENTS LINKING HIM TO MR TAN WHICH SURFACED IN THE MALAYSIAN MEDIA IN OCTOBER 1990 THE DOCUMENTS ARE COPIES OF FOUR LETTERS SUPPOSEDLY SENT TO TENGKU RAZALEIGH AT VARIOUS TIMES BETWEEN 1979 AND 1983 THREE OF THE LETTERS PURPORT TO BE WRITTEN BY GEORGE TAN THE REMAINING LETTER PURPORTEDLY CAME FROM A FORMER BMF ASSISTANT GENERAL MANAGER JALIL IBRAHIM THE LETTER PURPORTEDLY SENT BY MR JALIL ON JULY 4 1983 ASKS TENGKU RAZALEIGH WHETHER HE WAS THE BENEFICIAL OWNER OF 25 MILLION SHARES IN CARRIAN INVESTMENTS LTD MR TAN'S FLAGSHIP COMPANY IN ONE OF THE OTHER LETTERS PURPORTEDLY WRITTEN BY MR TAN THE CARRIAN CHAIRMAN STATES AS AGREED I'LL ARRANGE FOR 25 MILLION CIL SHARES TO BE MADE AVAILABLE THE LETTER GOES ON TO THANK TENGKU RAZALEIGH FOR HIS BACKING OF CARRIAN GROUP TENGKU RAZALEIGH DENIED HAVING RECEIVED ANY OF THE LETTERS AND BRANDED THEM FALSE AND FABRICATED DOCUMENTS HE SAID HE HAD NEVER HELD A DIRECT OR INDIRECT INTEREST IN ANY CARRIAN GROUP COMPANY HE ALSO SAID HE HAD NEVER HELPED MR TAN OR CARRIAN COMPANIES IN ANY WAY TENGKU RAZALEIGH WAS FINANCE MINISTER FROM 1976 TO THE MIDDLE OF 1984 WHEN HE LEFT THE POST TO TAKE ANOTHER MINISTERIAL JOB 9402180188 940218 KLEINWORT BENSON'S 1993 PRETAX PROFIT MORE THAN DOUBLED SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH MERCHANT BANK KLEINWORT BENSON PLC SAID PRETAX PROFIT MORE THAN DOUBLED IN 1993 WITH GAINS ACROSS ALL OF ITS TRADING DIVISIONS PRETAX PROFIT FOR 1993 ROSE TO 1117 MILLION 1648 MILLION OR 632 PENCE A SHARE COMPARED WITH 451 MILLION OR 156 PENCE A SHARE A YEAR EARLIER KLEINWORT BENSON STRESSED HOWEVER THAT 92 MILLION OF ITS 1117 MILLION OF PRETAX PROFIT RESULTED FROM THE SALE OF ITS SHARPS PIXLEY UNIT TO DEUTSCHE BANK IN SEPTEMBER EXCLUDING THIS PRETAX PROFIT FOR THE YEAR WAS 1025 MILLION STILL THIS IS WELL ABOVE THE 88 MILLION ANALYSTS WERE EXPECTING THE FULLYEAR DIVIDEND OF 185 PENCE COMPARED WITH 16 PENCE A YEAR EARLIER WAS ALSO HIGHER THAN FORECASTS WHICH HAD CENTERED ON A PAYOUT OF AROUND 18 PENCE A SHARE THE MERCHANT BANK SAID THAT FAVORABLE MARKET CONDITIONS THROUGHOUT THE YEAR LED TO A SATISFACTORY PERFORMANCE AT ITS EQUITY AND TREASURY OPERATIONS AND THAT THE CONTRIBUTION FROM ITS DEBT AND EQUITIES FINANCING AND ISSUE BUSINESS INCREASED SUBSTANTIALLY KLEINWORT BENSON SAID THAT OVERALL OPERATING PROFIT ROSE TO 4381 MILLION FROM 3234 MILLION A YEAR EARLIER WITH HEALTHY RISES IN BOTH FEES AND COMMISSION AND DEALING PROFITS HOWEVER NET INTEREST INCOME DECLINED 17 TO 613 MILLION FROM 737 MILLION A YEAR EARLIER 9402180187 940218 WHO'S NEWS BELL BANCORP INC BELL BANCORP INC CHICAGO JOHN C SAVIO WAS NAMED A DIRECTOR OF BELL BANCORP AND ITS BELL FEDERAL SAVINGS & LOAN ASSOCIATION UNIT MR SAVIO SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND DIRECTOR OF MARKETING AT BELL FEDERAL SAVINGS SUCCEEDS GUNTHER H KNOEDLER WHO RESIGNED FROM THE BOARD IN ANTICIPATION OF HIS RETIREMENT THIS OCTOBER 9402180186 940218 PHILANTHROPY FIRMS HELPING DISASTER AREAS LOOK TO FUTURE BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHILE DOZENS OF COMPANIES WERE SENDING CASH AND CANNED GOODS TO LOS ANGELES AFTER ITS LATEST EARTHQUAKE MONSANTO CO IN ST LOUIS WAS KEEPING ITS EYE AND SOME OF ITS PHILANTHROPIC FUNDS ELSEWHERE COME THE SPRING THAW THERE IS THE POSSIBILITY THAT ANOTHER MAJOR FLOOD MAY HIT THE MIDWEST AND MONSANTO WANTS TO BE PREPARED SO IN ADDITION TO THE MORE THAN 2 MILLION THE AGRICULTURALPRODUCTS MAKER AND ITS EMPLOYEES HAVE ALREADY GIVEN TO A 5 MILLION AMERICAN RED CROSS RURALRELIEF FUND IT SPEARHEADED FOR FLOOD VICTIMS THE MONSANTO FUND HAS SET ASIDE SOME 200000 FOR POTENTIAL USE AT TWO PARTICULARLY SUSCEPTIBLE RIVER TOWNS WHERE IT HAS PLANTS NO ONE REALLY PLANS' FOR A DISASTER BUT WE HAVE CONTINGENCY FUNDING SAYS MARILYN HARTNETT CORPORATE CONTRIBUTIONS MANAGER AT MONSANTO AND FROM MY POINT OF VIEW SUCH DISASTERANTICIPATION IS GOING TO BE A CONSIDERATION IN THE 1995 BUDGET TOO ADDS MS HARTNETT PROMPTED BY THE UNUSUAL SPATE OF NATURAL DISASTERS IN RECENT YEARS MONSANTO AND SOME OTHER COMPANIES ARE TAKING PRIVATEASSISTANCE EFFORTS TO ANOTHER LEVEL ADVANCE DISASTER RELIEF COMPANIES ARE ALSO CONCENTRATING ON AIDING COMMUNITIES WHERE THEY HAVE FACILITIES WORKERS OR CUSTOMERS THOSE THAT LEAN TOWARD PRODUCT GIFTS ARE FIGURING OUT NEW WAYS OF GETTING THE RIGHT GOODS TO THE RIGHT PLACE OR GIVING CASH AND MANY COMPANIES ARE ESTABLISHING MATCHINGGIFT FUNDS WHEN EMPLOYEES DONATE BUT IN SOME CASES THE DISASTER FUNDING MEANS OTHER PROJECTS OR GRANTS GO UNDONE MONSANTO FOR INSTANCE NOTES THAT THE BULK OF ITS PHILANTHROPIC BUDGET IS COMMITTED TO LONGERTERM PROJECTS BUT ADDS THAT WHEN A PIECE OF ITS DISCRETIONARY FUNDS FLOW TO FLOOD RELIEF SOMETHING ELSE GOES AND AMERICAN RED CROSS OFFICIALS ARE WATCHING FOR COMPASSION FATIGUE ON THE PART OF CORPORATE DONORS JOHN WM THOMAS SENIOR VICE PRESIDENT OF DEVELOPMENT FOR THE AMERICAN RED CROSS IN WASHINGTON DC AND THE GROUP'S CHIEF FUNDRAISER HOPES THAT ANTICIPATING DISASTERS MAY HELP BOTH CORPORATIONS AND THE RED CROSS ITSELF BETTER BUDGET THEIR RESOURCES WE ARE SAYING TO COMPANIES WE NEED YOUR HELP FOR LA BUT WE MAY NEED YOUR HELP IN THREE OR FOUR MONTHS TOO IF IT FLOODS IN THE MIDWEST HE SAYS AS SOCIETY INCREASINGLY TURNS TO THE PRIVATE SECTOR FOR ASSISTANCE CORPORATE INVOLVEMENT IN DISASTER RELIEF IS LIKELY TO GROW SAYS THE CONFERENCE BOARD AN ECONOMIC RESEARCH GROUP IN NEW YORK ITS RECENT STUDY FOUND THAT 90 OF COMPANIES POLLED PROVIDE SOME SORT OF DISASTER RELIEF THOSE POLLED SHOWED AID SOARING FROM 216 MILLION IN CASH AND PRODUCTS IN 1990 TO 483 MILLION IN 1992 ALTHOUGH NOT ALL SUPPLIED 1990 DATA WHILE CASH GIFTS ARE COMMON THE VALUE OF DONATED PRODUCTS IS TYPICALLY MORE THAN THREE TIMES AS HIGH AS THE CASH CONTRIBUTION PHARMACEUTICAL AND FOOD COMPANIES IN PARTICULAR HAVE A LONG TRACK RECORD IN DISASTER RELIEF FOR 12 YEARS JOHNSON & JOHNSON HAS USED A FORMULA BASED ON THE NUMBER OF DEATHS AND INJURIES IN DECIDING HOW MANY OF ITS DISASTER MODULES TO SEND THE MODULES ARE SHIPPING CONTAINERS LOADED WITH BULK MEDICAL SUPPLIES SUCH AS BANDAGES GLOVES AND OVERTHECOUNTER MEDICINES BUT THE NEW BRUNSWICK NJ HEALTHCARE CONCERN CAN ALSO ADAPT QUICKLY ON THE MORNING OF THE LOS ANGELES QUAKE CURT WEEDEN HEAD OF CORPORATE CONTRIBUTIONS AND ANOTHER MEMBER OF THE J&J DISASTERRELIEF COMMITTEE HEARD THE NEWS ON THE WAY TO WORK THE J&J EARLY BIRDS SPOKE WITH LOS ANGELES SOURCES BEFORE THE DAYLONG QUAKEINDUCED PHONE DISRUPTIONS BEGAN SO WHILE OTHERS WERE STILL SEEKING INFORMATION J&J HAD DECIDED NOT TO DISPATCH THE MODULES INSTEAD IT USED A NETWORK OF PRIVATE VOLUNTARY ORGANIZATIONS IN THE AREA SUCH AS THE LOCAL RED CROSS TO ARRANGE FOR LESS SURGICAL MORE PRACTICAL GOODS WITHIN A DAY OR SO PERSONALCARE ITEMS SUCH AS TOOTHBRUSHES DISPOSABLE DIAPERS AND FEMININEHYGIENE PRODUCTS WERE BEING GIVEN TO EARTHQUAKE VICTIMS A SMALL NUMBER OF CORPORATE DONORS INCLUDING THE AVON PRODUCTS FOUNDATION HAVE RECENTLY TURNED OVER THEIR PRODUCT DONATIONS TO A MIDDLEMAN GIFTS IN KIND AMERICA IN ALEXANDRIA VA FOR A FEE OF UNDER 50000 A YEAR THE AGENCY HANDLES AVON'S MERCHANDISE DONATIONS WE CAN'T RUN THIS PROGRAM AT THAT PRICE SAYS GLENN CLARKE PRESIDENT OF THE AVON FOUNDATION CALLING THE SERVICE EFFICIENT AND TIMELY MANY COMPANIES HAVE SIMPLY BEEN LEARNING AS THEY GO AFTER HURRICANE ANDREW KMART CORP AND OTHERS CONCLUDED THAT PILING GOODS ON A TRUCK AND RACING TO THE DISASTER SCENE DIDN'T WORK WELL SO THE MORNING AFTER THE LA QUAKE KMART'S DISASTERRELIEF COMMITTEE SENT A BULLETIN TO ALL STORE MANAGERS NOT TO ACCEPT ANY COLLECTIONS AT THE STORE INSTEAD KMART ITSELF FOCUSED ON GIFTS OF CASH AND DRINKING WATER CORPORATIONS AND RELIEF AGENCIES GENERALLY RECOGNIZE 1989 AS A SORT OF WATERSHED YEAR FOR COMPANY GIVING AFTER HURRICANE HUGO WAS FOLLOWED BY THE SAN FRANCISCO EARTHQUAKE LIVE TELEVISION COVERAGE OF SUBSEQUENT DISASTERS HAS FUELED THE TREND ANHEUSERBUSCH COS FOR INSTANCE SAYS IT HAS GIVEN SOME 5 MILLION IN CASH AND OVER 17 MILLION CANS OF DRINKING WATER SINCE 1989 THE RED CROSS FIGURES THAT CORPORATIONS HAVE CONTRIBUTED ABOUT 25 OF TOTAL DISASTER GIVING SINCE 1989 GENERAL MOTORS CORP A LONGTIME NATIONAL RED CROSS SUPPORTER ADDED THE SALVATION ARMY AS AN OPTION AS IT AND THE UNITED AUTO WORKERS PREPARE TO GIVE AS MUCH AS 145 MILLION IN LOS ANGELES EARTHQUAKE RELIEF THE AUTO MAKER AND THE UNION TOGETHER ARE DONATING SOME 450000 SPLIT 5050 BETWEEN THE SALVATION ARMY AND THE RED CROSS ADDITIONALLY GM WILL MATCH UP TO 500000 IN GIFTS FROM EMPLOYEES RETIREES AND DEALERS TO BOTH GROUPS THE SPLIT WILL BE DECIDED ON HOW THE WORKERS WRITE THEIR CHECKS GM PREVIOUSLY HAD APPROACHED DISASTERS ON A CASEBYCASE BASIS BUT IS NOW LOOKING AT A MORE FORMAL POLICY SAYS DEBORAH DINGELL PRESIDENT OF THE GENERAL MOTORS FOUNDATION GM HAS LONG HAD A DISASTERRELIEF PLAN IN PLACE ON THE SALES SIDE TO ASSIST ITS DEALERS SAYS MRS DINGELL WE ARE NOW TRYING TO TIE IN THE CHARITABLE AND COMMUNITY SIDE 9402180185 940218 OFFSHORE PIPELINES' CONTRACTS HOUSTON OFFSHORE PIPELINES INC SAID A SUBSIDIARY SIGNED SEVERAL CONTRACTS VALUED AT A TOTAL OF ABOUT 60 MILLION FOR CONSTRUCTION PROJECTS IN THE GULF OF MEXICO AND THE CARIBBEAN AREA OFFSHORE PIPELINES IS A MARINE CONSTRUCTION SERVICES COMPANY 9402180184 940218 INDONESIAN IS ARRESTED IN CASE OF BIG LOAN AT STATEOWNED BANK JAKARTA AN INDONESIAN BUSINESSMAN WHO OBTAINED A BIG CONTROVERSIAL LOAN FROM A STATEOWNED BANK HAS BEEN ARRESTED INDONESIA'S ATTORNEY GENERAL'S OFFICE SAID AUTHORITIES ARRESTED EDDY TANSIL HEAD OF THE GOLDEN KEY GROUP A SPOKESMAN FOR THE ATTORNEY GENERAL'S OFFICE GAVE NO DETAILS OF WHAT CHARGE MIGHT BE FILED AGAINST MR TANSIL OR AN UNIDENTIFIED OFFICIAL OF THE INDONESIAN DEVELOPMENT BANK WHO WAS ARRESTED A DAY EARLIER SINCE ATTORNEY GENERAL SINGGIH STEPPED INTO THE LOAN CASE EARLIER THIS WEEK SEVERAL OTHER OFFICIALS OF THE BANK KNOWN AS BAPINDO HAVE BEEN QUESTIONED BY AUTHORITIES MR SINGGIH SAID WEDNESDAY THAT FOUR BAPINDO OFFICIALS HAVE BEEN PUT ON A LIST OF PERSONS NOT PERMITTED TO LEAVE THE COUNTRY A MEMBER OF PARLIAMENT ARNOLD BARAMULI ASSERTED EARLIER THIS MONTH THAT BAPINDO ARRANGED AN UNUSUAL 430 MILLION LETTER OF CREDIT FOR MR TANSIL TO BUILD A PETROCHEMICAL PLANT MR BARAMULI SAID THAT THE LOAN MAY HAVE SADDLED THE STATE WITH A LOSS OF 13 TRILLION RUPIAH 614 MILLION ACCORDING TO MR BARAMULI THE LETTER OF CREDIT WAS ALTERED IN A WAY THAT ALLOWED FUNDS TO BE DRAWN OVERSEAS BEFORE EQUIPMENT FOR THE PLANT WAS SHIPPED AFTER THE ALLEGATION WAS MADE MR TANSIL TOLD REPORTERS THAT THE LOAN WAS SMALLER THAN 430 MILLION AND THAT IT WASN'T A BAD DEBT HE SAID PART OF THE PLANT HE IS BUILDING IN WEST JAVA WITH THE MONEY COULD OPEN IN MARCH INDONESIA'S CENTRAL BANK GOVERNOR AND FINANCE MINISTER HAVE SAID THAT BANK SECRECY LAWS PREVENT THEM FROM MAKING ANY COMMENT ABOUT THE LOAN 9402180183 940218 POLITICS & POLICY FDIC FINDS NO EVIDENCE OF VIOLATIONS IN ROSE LAW FIRM'S WORK WITH A THRIFT BY KENNETH H BACON AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP FOUND NO EVIDENCE THAT THE ROSE LAW FIRM WHERE HILLARY RODHAM CLINTON AND SEVERAL ADMINISTRATION OFFICIALS WERE PARTNERS VIOLATED CONFLICTOFINTEREST RULES IN ITS DEALINGS WITH A FAILED ARKANSAS THRIFT SEPARATELY PRESIDENT CLINTON REPEATED ASSERTIONS THAT THE CURRENT CONTROVERSY OVER AN INVESTMENT HE AND MRS CLINTON MADE THROUGH WHITEWATER DEVELOPMENT CO WILL DIE DOWN IT'S AN INVESTMENT I MADE 15 YEARS AGO THAT LOST MONEY BECAUSE THE PROPERTY MARKET TURNED AROUND AT HOME MR CLINTON SAID ON THE SYNDICATED RADIO PROGRAM IMUS IN THE MORNING IT'S A SIMPLE STRAIGHTFORWARD THING AND IT'LL BE SHOWN TO BE ASKED IF WHITEWATER WILL EVOLVE INTO ANOTHER WATERGATE THE SCANDAL THAT SPUN OUT OF CONTROL AND BROUGHT DOWN PRESIDENT NIXON MR CLINTON SAID FIRMLY NO THE FDIC EXAMINED JUST ONE PART OF REPUBLICAN ALLEGATIONS AND A NUMBER OF NEWS DISCLOSURES ABOUT WHITEWATER DEVELOPMENT AND MADISON GUARANTY SAVINGS & LOAN ALLEGATIONS HAVE LINKED MADISON WHICH FAILED IN 1989 TO HELPING THE CLINTONS FINANCE THEIR INVESTMENT IN WHITEWATER A NORTH ARKANSAS LANDDEVELOPMENT VENTURE AND TO HELPING RAISE MONEY FOR MR CLINTON'S GUBERNATORIAL CAMPAIGN DEBTS MR CLINTON HAS DENIED ANY IMPROPRIETY A SPECIAL COUNSEL IS CURRENTLY INVESTIGATING THESE CLAIMS AFTER MADISON FAILED THE FDIC WHICH WAS MANAGING THE LIQUIDATION OF THE THRIFT'S ASSETS HIRED THE ROSE LAW FIRM IN LITTLE ROCK TO COMPLETE LITIGATION AGAINST FROST & CO MADISON'S FORMER ACCOUNTING FIRM CLAIMS HAVE BEEN MADE THAT THE ROSE FIRM WAS GUILTY OF A CONFLICT OF INTEREST BECAUSE IT HAD REPRESENTED MADISON SEVERAL YEARS EARLIER BEFORE THE ARKANSAS SECURITIES COMMISSIONER AND BECAUSE THE FATHERINLAW OF WEBSTER HUBBELL THE PARTNER IN CHARGE OF THE FROST CASE WAS INVOVLED IN LITIGATION AGAINST MADISON MR HUBBELL A FORMER MAYOR OF LITTLE ROCK AND A CLOSE FRIEND OF THE CLINTONS IS CURRENTLY THE THIRDRANKING OFFICIAL IN THE JUSTICE DEPARTMENT IN AN EIGHTPAGE REPORT THE FDIC'S LEGAL DIVISION FOUND NO BASIS TO CONCLUDE THAT UNDER THE THEN APPLICABLE RULES EITHER SITUATION INVOLVED A CONFLICT OF INTEREST AS A RESULT THE STAFF SAID THAT WE RECOMMEND NO SANCTIONS AGAINST THE FIRM ALAN WHITNEY THE FDIC'S SPOKESMAN SAID THAT FDIC ACTING CHAIRMAN ANDREW HOVE HAS REVIEWED THE REPORT AND AGREED WITH ITS CONCLUSIONS IF THE AGENCY HAD FOUND CONFLICTS OF INTEREST IT COULD HAVE BARRED THE ROSE FIRM FROM FURTHER FDIC WORK MR WHITNEY SAID THE FIRM ISN'T CURRENTLY DOING ANY WORK FOR THE FDIC THE FINDING IS GOOD NEWS FOR MRS CLINTON MR HUBBELL AND OTHER ROSE ALUMNI IN THE ADMINISTRATION THE CONCLUSION COULD HAVE A BEARING ON INVESTIGATIONS INTO THE CIRCUMSTANCES THAT LED TO THE SUICIDE OF VINCENT FOSTER A ROSE PARTNER WHO BECAME DEPUTY WHITE HOUSE COUNSEL AND HANDLED WHITEWATER ISSUES BEFORE HIS DEATH LAST JULY MR FOSTER WROTE TO THE FDIC THE DAY MADISON FAILED SOLICITING S&L WORK HOWEVER THE AGENCY SAID HIS LETTER WASN'T A FACTOR IN THE FDIC'S DECISION TO HIRE THE FIRM THE ROSE FIRM NEGOTIATED A 1 MILLION SETTLEMENT WITH THE ACCOUNTING FIRM FOR THE GOVERNMENT AND TOOK A 400000 FEE ACCORDING TO REPORTS THE FDIC FINDING MAY ALSO EASE PRESSURE ON THE AGENCY WHICH HAS BEEN TRYING HARD TO STAY OUT OF THE CHARGES SWIRLING IN CONGRESS AND THE PRESS ABOUT MADISON AND WHITEWATER RICKI TIGERT PRESIDENT CLINTON'S NOMINEE TO CHAIR THE FDIC HAS SAID SHE WILL REMOVE HERSELF FROM ANY MATTER THAT COMES BEFORE THE AGENCY ABOUT THE CLINTONS' INVOLVEMENT WITH MADISON OR WHITEWATER MS TIGERT A WASHINGTON BANKING LAWYER IS A CLINTON ACQUAINTANCE BUT THE REPORT PROBABLY WON'T END REPUBLICAN CLAIMS ABOUT A POSSIBLE CONFLICT OF INTEREST BY THE ROSE FIRM FOR ONE THING MANY OF THE FINDINGS IN THE REPORT ARE BASED IN PART ON MR HUBBELL'S RECOLLECTIONS SECONDLY IT'S NOT CLEAR HOW FORTHRIGHT THE FIRM WAS IN DISCLOSING POTENTIAL CONFLICTS TO THE FDIC THIRDLY THE FDIC STAFF SAID THAT WHILE THE ROSE FIRM DIDN'T VIOLATE CONFLICTOFINTEREST STANDARDS IN 1989 TODAY'S RULES WOULD REQUIRE CLEARER DISCLOSURE OF POTENTIAL CONFLICTS TO THE FDIC REP JAMES LEACH OF IOWA ONE OF THE REPUBLICANS WHO HAS PUSHED AGGRESSIVELY FOR A FULL INVESTIGATION OF ALL THE CIRCUMSTANCES SURROUNDING THE FAILURE OF MADISON HAS SAID THAT THERE IS A POTENTIAL CIVIL LIABILITY OF THE ROSE LAW FIRM HE COULDN'T BE REACHED FOR COMMENT YESTERDAY THE WHITE HOUSE HAD NO COMMENT ON THE FDIC STAFF REPORT ANY FURTHER INVESTIGATION WILL BE CONDUCTED BY ROBERT FISKE THE SPECIAL COUNSEL WHO IS LOOKING INTO CHARGES THAT HAVE ARISEN ABOUT MADISON WHITEWATER AND MR FOSTER'S SUICIDE YESTERDAY AS EXPECTED THE JUSTICE DEPARTMENT ISSUED A NEW INDICTMENT AGAINST DAVID HALE A FORMER COUNTY JUDGE AND LITTLE ROCK BUSINESSMAN WHO HAS BEEN CHARGED WITH CONSPIRACY TO DEFRAUD THE SMALL BUSINESS ADMINISTRATION MR HALE HAS ASSERTED THAT MR CLINTON AND JAMES MCDOUGAL MADISON'S FORMER OWNER AND A CLINTON PARTNER IN WHITEWATER ASKED HIM TO ARRANGE A 300000 LOAN BACKED BY THE SBA TO CLEAN UP PROBLEMS AT MADISON SUCH A LOAN WAS MADE TO A COMPANY OWNED BY SUSAN MCDOUGAL MR MCDOUGAL'S WIFE AT THE TIME MR CLINTON HAS DENIED ANY ROLE IN THE LOAN BUT MR CLINTON TOLD REPORTERS YESTERDAY THAT HE HAS BEEN MEETING REGULARLY WITH HIS PERSONAL ATTORNEY ON WHITEWATER ISSUES THEIR LATEST MEETING WAS WEDNESDAY HE SAID HE BASICALLY JUST GIVES US A REGULAR UPDATE OH EVERY FEW WEEKS MR CLINTON SAID ON THE IMUS SHOW THE PRESIDENT CONTINUED TO MAINTAIN THAT HE AND HIS WIFE LOST ABOUT 69000 ON THE WHITEWATER INVESTMENT WE LOST IT OVER A LONG PERIOD OF TIME MOST OF IT THE LOSS WAS WHEN WE PAID THE BANK LOANS BACK WITH INTEREST AND WE NEVER GOT ANY MONEY ON THE INTEREST HE SAID I'M AMAZED BY ALL THE TWISTS AND TURNS OF INTERPRETATION IT'S BEEN GIVEN BUT THERE'STHAT'S ABOUT WHAT HAPPENED MR CLINTON SAID APPARENTLY THAT'S PART OF BEING PRESIDENT IN THE LATTER HALF OF THE 20TH CENTURY IN A HIGHLY COMPETITIVE ENVIRONMENT 9402180182 940218 CITIBANK DAMAGES TO SMITH NEW COURT ARE CUT AFTER APPEAL SPECIAL TO THE WALL STREET JOURNAL LONDON THE UK COURT OF APPEAL HAS SIGNIFICANTLY REDUCED THE DAMAGES AWARDED TO SMITH NEW COURT PLC FOR LOSSES RELATED TO ITS 1992 PURCHASE OF SHARES IN FERRANTI INTERNATIONAL SIGNAL PLC FROM CITIBANK SMITH NEW COURT WAS ORIGINALLY AWARDED 108 MILLION 159 MILLION AFTER AN APPEAL BY CITIBANK HOWEVER THE AWARD HAS BEEN REDUCED TO JUST UNDER 12 MILLION PLUS INTEREST SMITH NEW COURT SAID THAT DESPITE REDUCING THE AWARD THE COURT OF APPEAL UPHELD ITS ORIGINAL RULING THAT THE BROKERAGE WAS MISLED INTO PAYING 23 MILLION FOR A BLOCK OF FERRANTI SHARES IN JULY 1989 BY FALSE CLAIMS BY CITIBANK THAT IT WAS IN COMPETITION WITH TWO OTHER BIDDERS THE ORIGINAL JUDGMENT WAS GIVEN AGAINST CITIBANK NA A UNIT OF CITICORP AND ITS FORMER HEAD OF PRIVATE BANKING CHRISTOPHER ROBERTS THE UK BROKERAGE SAID IT WAS NATURALLY DISAPPOINTED BY THE RULING AND WILL SEEK TO APPEAL THE DECISION TO THE HOUSE OF LORDS SMITH NEW COURT SAID THE ORIGINAL AWARD HAS BEEN HELD AS PART OF ITS CASH BALANCES BUT THAT NO CREDIT HAS BEEN TAKEN TO ITS PROFIT AND LOSS ACCOUNT CITIBANK SAID IT HAS NO COMMENT ON THE COURT'S JUDGMENT 9402180181 940218 RITE AID ATTEMPTS BUYBACK OF SHARES WITH LITTLE SUCCESS CAMP HILL PA RITE AID CORP WANTS TO BUY BACK ITS SHARES EVEN THOUGH A LOT OF ITS SHAREHOLDERS DON'T SEEM VERY INTERESTED THE DRUG RETAILER ONE OF THE NATION'S LARGEST SAID DIRECTORS AUTHORIZED REPURCHASE OF AS MANY AS FIVE MILLION OF ITS SHARES FROM TIME TO TIME IN THE OPEN MARKET A WEEK AGO THE COMPANY AS PART OF A RESTRUCTURING ANNOUNCED LAST MONTH HAD OFFERED TO BUY AS MANY AS 22 MILLION OR 25 OF ITS SHARES IN A SOCALLED DUTCH AUCTION AT A PRICE RANGE OF 16 A SHARE TO 1850 A SHARE DUTCH AUCTIONS IN WHICH A COMPANY STATES THE NUMBER OF SHARES IT WILL BUY IN A CERTAIN RANGE WITHOUT SETTING A SINGLE PURCHASE PRICE ARE OFTEN OVERSUBSCRIBED BUT RITE AID INVESTORS APPARENTLY BELIEVED THEY WOULD DO BETTER TO HANG ON TO THEIR SHARES ONLY 21 MILLION SHARES OR 24 OF RITE AID'S SHARES OUTSTANDING WERE TENDERED IN THE AUCTION AND RITE AID BOUGHT ALL THE SHARES AT 1850 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY RITE AID SHARES CLOSED AT 18875 UP 125 CENTS WE WERE SOMEWHAT DISAPPOINTED IN THE RESULTS OF THE AUCTION A RITE AID SPOKESMAN SAID BUT IF YOU LOOK AT THE HISTORY OF DUTCH AUCTIONS IT MOVES ALL OVER THE PLACE PEOPLE REFOCUSED ON OUR RESTRUCTURING EFFORTS AND THOUGHT THAT OUR STOCK HAD MORE POTENTIAL THAN THE 1850ASHARE OFFER AS PART OF THE RESTRUCTURING THE COMPANY SAID IT PLANNED TO SELL FOUR NONCORE BUSINESSES CLOSE 200 UNDERPERFORMING DRUGSTORES RESULTING IN A 91 MILLION CHARGE AND LAUNCH THE BUYBACK IN THE DUTCH AUCTION RICHARD CHURCH AN ANALYST AT SMITH BARNEY SHEARSON A UNIT OF TRAVELERS INC SAID BASICALLY INVESTORS FELT LIKE THE PRICE RANGE THE COMPANY HAD ESTABLISHED WAS A LITTLE BIT ON THE LOW SIDE 9402180180 940218 WHO'S NEWS VARIAN ASSOCIATES INC VARIAN ASSOCIATES INC PALO ALTO CALIF DAVID W MARTIN JR PRESIDENT OF CHIRON THERAPEUTICS AND SENIOR VICE PRESIDENT OF CHIRON CORP WAS ELECTED TO THE BOARD OF THIS DIVERSIFIED HIGHTECH COMPANY HE SUCCEEDS THOMAS D SEGE WHO RETIRED 9402180179 940218 WHO'S NEWS AIR METHODS CORP AIR METHODS CORP DENVER JOSEPH E BERNSTEIN WAS NAMED TO THE BOARD OF THIS MEDICALSERVICES COMPANY INCREASING THE BOARD'S SIZE TO NINE MR BERNSTEIN 45 YEARS OLD IS MANAGING DIRECTOR OF AMERICAS PARTNERS A NEW YORK INVESTMENT COMPANY THAT ALONG WITH ITS AFFILIATES OWNS MORE THAN 17 OF AIR METHODS COMMON STOCK 9402180178 940218 WHO'S NEWS ONEOK INC ONEOK INC TULSA OKLA LARRY W BRUMMETT 43 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS JD SCOTT 62 WHO WILL RETIRE JUNE 1 THE SUCCESSION BY MR BRUMMETT FORMERLY EXECUTIVE VICE PRESIDENT OF THIS ENERGY COMPANY WAS EXPECTED HE ASSUMED THE JOBS OF PRESIDENT AND CEO YESTERDAY AND HIS TITLE AS CHAIRMAN WILL BE EFFECTIVE JUNE 1 9402180177 940218 POSITIVE DRUG RESULTS DECLINED AGAIN IN 1993 IN WORKPLACE TESTING PHILADELPHIA SMITHKLINE BEECHAM PLC'S CLINICAL LABORATORIES UNIT SAID POSITIVE RESULTS FROM WORKPLACE DRUG TESTS DROPPED FOR THE SIXTH CONSECUTIVE YEAR IN 1993 THE RESULTS OF MORE THAN THREE MILLION DRUG TESTS CONDUCTED AT THE LONDONBASED COMPANY'S LABORATORIES IN COLLEGEVILLE PA SHOWED AN OVERALL POSITIVITY RATE OF 841 DOWN FROM 876 IN 1992 THE COMPANY SAID THE REPORT NOTED THAT SINCE 1987 THE RATE OF POSITIVE WORKPLACE DRUG TESTS HAS FALLEN 53 AND HAS HOVERED BETWEEN 8 AND 9 IN THE PAST THREE YEARS MARIJUANA REMAINED THE MOST COMMONLY DETECTED DRUG AMONG THE WORKERS TESTED FOLLOWED BY COCAINE AND TRANQUILIZERS POSITIVE RESULTS DECREASED IN THE SOUTHEASTERN CENTRAL AND NORTHEASTERN REGIONS OF THE US POSITIVE RESULTS INCREASED IN THE WESTERN REGION SMITHKLINE BEECHAM A HEALTHCARE CONCERN RELEASES THE DRUG TESTING INDEX EVERY SIX MONTHS TO THE GOVERNMENT MEDIA AND INDUSTRIES 9402180176 940218 MOVIES STUDIOS SKIP CELLULOID GO TO VIDEOTAPE BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WHEN THEY HEAR DIRECTTOVIDEO MOST PEOPLE THINK OF LOWBUDGET INDEPENDENT FILMS TYPICALLY IN THE HORROR VIOLENTACTION OR STEAMYTHRILLER GENRES BUT NOW WITH SEQUELS TO ALADDIN AND DARKMAN RESPECTIVELY WALT DISNEY CO AND MCA INC ARE MAKING MOVIES THAT WILL SKIP THE THEATERS AND GO STRAIGHT TO VIDEO MORE LARGE STUDIOS ARE LIKELY TO FOLLOW WHICH COULD CHANGE THE ECONOMICS OF THE BUSINESS IN MYRIAD WAYS PART OF THEIR MOTIVATION IS DEFENSIVE PARAMOUNT COMMUNICATIONS INC'S MOVIE STUDIO WILL SOON BECOME PART OF AN EMPIRE THAT PRESUMABLY WILL INCLUDE BLOCKBUSTER ENTERTAINMENT CORP THE WORLD'S LARGEST VIDEO RETAILER BLOCKBUSTER'S 70OWNED AARON SPELLING PRODUCTIONS UNIT ALREADY IS QUIETLY PLANNING A FOURHOUR VERSION OF JAMES MICHENER'S TEXAS THAT WILL FIRST APPEAR IN VIDEO STORES LATE THIS YEAR OR EARLY NEXT THE BUDGET FOR TEXAS IS ABOUT 10 MILLION A BIT HIGH FOR A VIDEO MOVIE BUT CAPITAL CITIES/ABC INC'S ABC NETWORK IS KICKING IN ABOUT 40 FOR THE RIGHT TO AIR IT A COUPLE OF MONTHS AFTER THE VIDEO RELEASE THEY GET A BETTER RATE BUT IT'S A GOOD DEAL FOR THEM BECAUSE THE AMOUNT OF PEOPLE WHO WOULD RENT IT IS NEGLIGIBLE COMPARED TO THE TV AUDIENCE SAYS LAWRENCE LYTTLE PRESIDENT OF SPELLING'S TV UNIT THE NEW INTEREST IN DIRECTTOVIDEO RELEASES IS IN PART DUE TO THE CONVENTIONAL WISDOM THAT VIDEO STORES ARE HEADED THE WAY OF THE BETAMAX VISIONS OF A NEARFUTURE IN WHICH VIEWERS COULD SELECT MOVIES FROM HOME ARE CAUSING STUDIOS TO BUILD UP THEIR FILM LIBRARIES BY MAKING MORE MOVIES TO FILL THE EXPANDING UNIVERSE OF AVAILABLE CHANNELS UNTIL THEN STUDIOS ARE PROWLING FOR NEW DISTRIBUTION OUTLETS IF THEY CAN MAKE DIRECTTOVIDEO MOVIES ECONOMICALLY VIABLE A MAJOR EXPANSION OF FILM PRODUCTION COULD RESULT AND FOR AT LEAST THE NEAR TERM VIDEO STORES WOULD BE ABLE TO PROVIDE SOMETHING CONSUMERS CAN'T FIND ELSEWHERE THE VIDEO MARKETPLACE ALREADY IS VAST AND LUCRATIVE AN ESTIMATED 57 MILLION CUSTOMERS VISIT THEIR LOCAL VIDEO STORE EACH WEEK PROVIDING THE STUDIOS WITH AS MUCH AS 45 OF REVENUES ON SOME MOVIES TOM ADAMS MANAGING DIRECTOR OF THE CONSULTING FIRM ADVANSTAR ASSOCIATES ESTIMATES THAT IF THE STUDIOS COULD GET A 10 INCREASE IN REVENUE FROM VIDEO THEY COULD MATCH THE ENTIRE PAYPERVIEW MARKET DISNEY REVEALED LAST WEEK THAT ITS BIG SUMMER VIDEORELEASE WILL BE THE RETURN OF JAFAR AN ANIMATED SEQUEL TO ALADDIN MADE EXPRESSLY FOR VIDEOCASSETTE DISNEY'S BUENA VISTA HOME VIDEO DIVISION AGGRESSIVELY SELLS ITS ANIMATED FILMS FOR LESS THAN 20 APIECE OFTEN IN MASSMERCHANT DISCOUNT STORES BACKED BY A MASSIVE MARKETING CAMPAIGN THE RETURN OF JAFAR WOULD APPEAR TO BE A SLAMDUNK EVEN IF IT SELLS ONLY A FRACTION OF THE RECORDSETTING 21 MILLION ALADDIN UNITS SOLD ANN DALY PRESIDENT OF THE DIVISION SAYS DISNEY ALSO IS LOOKING SERIOUSLY AT MAKING LIVEACTION MOVIES FOR VIDEO RENTAL MCA IS PLANNING TO GO AFTER THE RENTAL MARKET A TRICKIER PROPOSITION THE COMPANY A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO HASN'T ANNOUNCED ITS PLANS YET BUT PEOPLE CLOSE TO IT SAY IT WILL RELEASE A SEQUEL TO ITS 1990 SLEEPER HIT DARKMAN DIRECTLYTOVIDEO THIS FALL THEN FOLLOW WITH SEVERAL MORE THE FILM STARRED LIAM NEESON NOW THE STAR OF SCHINDLER'S LIST BUT THE SEQUELS WILL NOT DARKMAN FILMED FOR A RELATIVELY PALTRY 15 MILLION BY CULT DIRECTOR SAM RAIMI BECAME A SURPRISE HIT FOR MCA'S UNIVERSAL PICTURES PROPELLED BY AN EFFECTIVE WHO IS DARKMAN MARKETING CAMPAIGN THE FILM SOLD ABOUT 33 MILLION IN TICKETS IN THE US AND WAS AN EVEN BIGGER HIT ON VIDEO STILL MCA WAS RELUCTANT TO SINK MONEY INTO A FULLBLOWN SEQUEL WHICH WOULD PROBABLY NOT MATCH THE PERFORMANCE OF THE ORIGINAL INSTEAD THE FILM'S PRODUCERS WENT TO THE FOX NETWORK WHERE PROGRAMMERS TOLD THEM IT WAS TOO DARK FOR A WEEKLY TELEVISION SERIES SAYS PRODUCER ROBERT TAPERT THEY WERE RIGHT HE SAYS NORMALLY THAT WOULD HAVE BEEN THE END OF DARKMAN BUT WE BELIEVED IT WAS A FRANCHISE THAT DESERVED TO LIVE SAYS MR TAPERT MCA AND ITS HOMEVIDEO PRESIDENT LOUIS FEOLA DECIDED TO TAKE A CHANCE THE FILM WAS A KNOWN COMMODITY AND THE VIOLENT SUPERHEROACTION GENRE WAS AIMED STRAIGHT AT YOUNG MALES THE BEST VIDEORENTING AUDIENCE MR FEOLA'S DIVISION AGREED TO SPLIT THE COSTS WITH MCA'S TV DIVISION AND THE PRODUCERS WENT TO WORK EXPERIENCED IN MAKING LOWBUDGET FILMS THEY MADE THE MOVIE FOR A BIT MORE THAN 4 MILLIONSLIGHTLY MORE THAN THE AVERAGE TV MOVIE AND MUCH LESS THAN THE NEARLY 30 MILLION REQUIRED TO MAKE A FEATURE FILM MCA HOWEVER WILL HAVE TO SPEND MORE MONEY ON ADVERTISING WHEN A STUDIOMADE MOVIE IS RELEASED IN THEATERS IT TYPICALLY GETS A TWOWEEK BLITZ OF TV AND PRINT ADVERTISING WHICH OFTEN CAN COST MORE THAN 10 MILLION WHETHER THE CAMPAIGN SELLS TICKETS OR NOT IT CREATES AN AWARENESS THAT LINGERS IN VIDEO STORES A FEW MONTHS LATER BUT MOST STUDIOS DON'T DO MUCH CONSUMER ADVERTISING FOR VIDEOS BECAUSE THEY GET PAID NOT BY THE NUMBER OF TIMES CUSTOMERS RENT A MOVIE BUT BY HOW MANY COPIES STORE OWNERS BUY MCA HAS EXPERIMENTED WITH CONSUMER ADVERTISING IN THE PAST IT CREATES GOODWILL WITH THE RETAILERS SAYS MR FEOLA MCA ALSO PLANS TO INCREASE NORMAL SPENDING FOR PUBLICITY AND INSTORE ADVERTISING FOR DARKMAN EXECUTIVES SAY AND A TRAILER FOR THE FILM COULD BE PLACED ON OTHER VIDEOS VIDEO RETAILERS TRADITIONALLY HAVE BEEN COOL TO THE IDEA OF RISKING MONEY TO LOAD UP ON COPIES OF MOVIES THAT NEVER PLAYED IN THEATERS THEY WANT TO SAY HEY THIS MOVIE DID 20 MILLION AT THE BOX OFFICE SO I CAN ORDER X NUMBER OF COPIES AND IT'LL RENT X NUMBER OF TIMES SAYS RON CASTELL SENIOR VICE PRESIDENT OF PROGRAMMING AND COMMUNICATIONS FOR BLOCKBUSTER BUT NOW RETAILERS SAY THAT THEIR CUSTOMERS CRAVE SOMETHING NEW RETAILERS ALSO HAVE EXPERIENCED SUCCESS FROM SOME INDEPENDENTLY PRODUCED DIRECTTOVIDEO MOVIES LIKE PREHYSTERIA WHICH TAPPED INTO LAST YEAR'S JURASSIC PARK CRAZE BY PROVIDING AN ALTERNATIVE FOR YOUNG CHILDREN PREHYSTERIA WAS PRODUCED BY FULL MOON ENTERTAINMENT A NEARLEGENDARY DIRECTTOVIDEO PRODUCER OF SUCH LOWBUDGET FARE AS BLOODLUST SUBSPECIES III THE COMPANY HAS CREATED A CHILDREN'S LINE DISTRIBUTED BY PARAMOUNT CALLED MOONBEAM PARAMOUNT HELPED SEND FULL MOON'S HEAD CHARLES BAND A FLAMBOYANT SALESMAN TO TWO DOZEN CITIES LAST YEAR TO VISIT VIDEO RETAILERS WE'RE TRYING TO CREATE A BRAND NAME SAYS ROBERT KLINGENSMITH PRESIDENT OF PARAMOUNT HOME VIDEO 9402180175 940218 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN ANDREAS M GEORGHIOU 44 YEARS OLD WAS NAMED VICE PRESIDENT COMMERCIAL BUSINESS SERVICES AT GE AMERICAN COMMUNICATIONS INC A NEW POSITION MR GEORGHIOU WAS PREVIOUSLY DIRECTOR BROADCAST SERVICES AT THE UNIT ALSO CHARLES CASTINE 44 WAS NAMED VICE PRESIDENT CONSUMER SERVICE AT THE GE APPLIANCES UNIT MR CASTINE SUCCEEDS DAVID COTE RECENTLY NAMED VICE PRESIDENT AND GENERAL MANAGER OF GE SILICONES GE IS AN ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING COMPANY 9402180174 940218 CHRYSLER TO INTRODUCE TWO COUPES BASED ON MITSUBISHI GALANT HIGHLAND PARK MICH CHRYSLER CORP SAID IT WILL INTRODUCE TWO COUPES BASED ON THE MITSUBISHI GALANT TO REPLACE THE DODGE DAYTONA AND THE CHRYSLER LEBARON THE TWO PRODUCTS THE DODGE AVENGER TO BE POWERED BY A CHRYSLERBUILT FOURCYLINDER ENGINE AND THE CHRYSLER SEBRING TO BE POWERED BY A MITSUBISHIBUILT SIXCYLINDER WILL BE ASSEMBLED AT MITSUBISHI MOTORS CORP'S DIAMONDSTAR MOTORS FACILITY IN ILLINOIS THE AVENGER WILL GO INTO PRODUCTION FIRST IN JULY BOTH PRODUCTS WILL BE SOLD AT THE END OF THE YEAR AS 1995 MODELS THE AVENGER AND SEBRING ARE DESIGNED TO ATTRACT BUYERS WHO ARE OLDER THAN DAYTONA DRIVERS THE CARS ARE MORE ROUNDED AND LOOK BIGGER AND WILL COMPETE WITH PONTIAC COUPES AND THE FORD THUNDERBIRD UNDER AN AGREEMENT WITH MITSUBISHI CHRYSLER WILL MARKET EXCLUSIVELY THE COUPES BUILT OFF THE GALANT PLATFORM AND THE JAPANESE COMPANY WILL MARKET THE FOURDOOR GALANT THE PLANT ALSO PRODUCES THE MITSUBISHI ECLIPSE AND CHRYSLER'S EAGLE TALON IDENTICAL CARS WHICH ARE BEING REDESIGNED FOR THE 1995 MODEL YEAR 9402180173 940218 WHO'S NEWS STAAR SURGICAL CO STAAR SURGICAL CO MONROVIA CALIF JOHN R WOLF PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND CHIEF OPERATING OFFICER FOR THIS MAKER OF PRODUCTS USED IN OPHTHALMIC SURGERY MR WOLF 48 YEARS OLD SUCCEEDS LAMAR LASTER 42 WHO RESIGNED AS CHAIRMAN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER FOR PERSONAL REASONS HE WILL CONTINUE TO WORK WITH STAAR ON A CONSULTING BASIS NO ONE WAS NAMED TO FILL THE POSITION OF EXECUTIVE VICE PRESIDENT 9402180172 940218 MONSANTO GIVES LAND FREQUENTED BY EAGLES TO CONSERVATION GROUP ST LOUIS MO MONSANTO CO DONATED TO THE NATURE CONSERVANCY 209 ACRES OF NORTHEAST ALABAMA LAND THAT HAS BECOME A POPULAR GATHERING PLACE FOR THE REGION'S SMALL NUMBER OF BALD EAGLES THE WASHINGTONBASED ORGANIZATION IN TURN DONATED THE FORMER MONSANTO LAND ALONG LAKE GUNTERSVILLE TO ALABAMA'S NEWLY FORMED FOREVER WILD LANDACQUISITION PROJECT THE NATURE CONSERVANCY A NONPROFIT CONSERVATION GROUP THAT SEEKS TO PRESERVE BIOLOGICAL DIVERSITY FREQUENTLY WORKS WITH CORPORATIONS FOR SEVERAL YEARS ALABAMA WILDLIFE OFFICIALS HAVE BEEN RELEASING BABY EAGLES IN AN EFFORT TO RESTORE THE RAPTORS TO THE AREA FROM WHICH THEY DISAPPEARED SOME 30 YEARS AGO LAST YEAR NINE PAIRS SUCCESSFULLY NESTED IN THE STATE SOME OF THE EAGLES HAVE BEGUN FREQUENTING THE FORMER MONSANTO LAND THE LAND WHICH THE COMPANY VALUED AT 550000 IS ADJACENT TO MONSANTO LAND HOUSING A LONGCLOSED COMPANY PLANT IT WILL BE ADDED TO A NEARBY STATE PARK 9402180171 940218 WHO'S NEWS KIMBERLYCLARK CORP KIMBERLYCLARK CORP DALLAS TWO DIRECTORS OF THIS HOUSEHOLD PERSONALCARE AND HEALTHPRODUCTS COMPANY WILL STEP DOWN FROM THE BOARD AS THEY APPROACH THE BOARD'S MANDATORY RETIREMENT AGE OF 68 YEARS WILLIAM E LAMOTHE 67 YEARS OLD CHAIRMAN EMERITUS OF KELLOGG CO AND A DIRECTOR FOR 12 YEARS WILL NOT STAND FOR REELECTION AT THE COMPANY'S ANNUAL MEETING PLANNED FOR APRIL 21 GEOFFREY G KALMANSON 66 A PRIVATE INVESTOR WHO HAS SERVED AS A DIRECTOR SINCE 1987 RETIRES FROM THE BOARD EFFECTIVE TODAY THE COMPANY HAS NOMINATED TWO EXECUTIVES WOLFGANG R SCHMITT 49 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RUBBERMAID INC AND RANDALL L TOBIAS 51 CHAIRMAN AND CEO OF ELI LILLY & CO TO FILL THE SEATS LEFT VACANT BY THE RETIREMENT OF MESSRS LAMOTHE AND KALMANSON SHAREHOLDERS WILL VOTE ON THE TWO NOMINEES AT THE APRIL MEETING KIMBERLYCLARK SAID 9402180170 940218 INTERNATIONAL AEROVIAS DE MEXICO IS IN TALKS MEXICO CITY AEROVIAS DE MEXICO SA IS NEGOTIATING THE SALE OF AS MUCH AS 25 OF THE COMPANY TO A FOREIGN AIRLINE GERARDO DE PREVOISIN CHAIRMAN SAID FOREIGNERS MAY HOLD NO MORE THAN 25 OF A MEXICAN AIRLINE UNDER MEXICO'S FOREIGN INVESTMENT LAW MR DE PREVOISIN DECLINED TO IDENTIFY THE AIRLINE INVOLVED IN THE TALKS 9402180169 940218 BUSINESS BRIEFS WESBANCO INC'S PLAN TO ACQUIRE FIRST FIDELITY BANCORP INC FAIRMONT WVA IN A STOCK SWAP VALUED AT ABOUT 70 MILLION WAS APPROVED BY SHAREHOLDERS OF BOTH COMPANIES PACTEL CORP WILL CHANGE ITS NAME TO AIRTOUCH COMMUNICATIONS AFTER ITS SPINOFF FROM PACIFIC TELESIS GROUP IN THE FIRST HALF OF THE YEAR IDB COMMUNICATIONS GROUP INC'S IDB WORLDCOM UNIT WILL PROVIDE DIRECT TELEX AND TELEGRAPH SERVICES BETWEEN THE US AND CUBA STARTING MAY 1 PENDING FEDERAL COMMUNICATIONS COMMISSION APPROVAL 9402180168 940218 AMERICA WEST CANCELS REQUEST THAT COURT BAN SECURITIES' SALE PHOENIX AMERICA WEST AIRLINES BOWING TO PRESSURE FROM CREDITORS AND SHAREHOLDERS WITHDREW ITS MOTION REQUESTING THAT THE US BANKRUPTCY COURT HERE PROHIBIT THE SALE OR TRANSFER OF ITS SECURITIES AMERICA WEST WHICH HAS BEEN OPERATING IN CHAPTER 11 BANKRUPTCYLAW PROTECTION FOR ALMOST THREE YEARS FILED THE MOTION LAST WEEK BECAUSE THE CARRIER SAID IT WANTED TO PROTECT THE COMPANY'S TAX BENEFITS THOSE BENEFITS CAN BE LOST WHEN AN INVESTOR ACQUIRES AND REORGANIZES A COMPANY IN CHAPTER 11 BUT THE MOTION DREW QUICK FIRE FROM AMERICA WEST'S CREDITOR AND EQUITY COMMITTEES WHICH SAID THE ACTION WOULD HURT THE VALUE OF THE AIRLINE'S SECURITIES BY WITHDRAWING THE MOTION AMERICA WEST AVOIDS A FIGHT IN WHAT HAS ALREADY BEEN A LONG CONTENTIOUS PROCESS SEPARATELY THE BANKRUPTCY COURT GRANTED AMERICA WEST'S REQUEST TO EXTEND UNTIL NEXT WEDNESDAY THE DATE ON WHICH THE COMPANY MUST CHOOSE A LEAD PROPOSAL FROM POTENTIAL INVESTORS AMERICA WEST HAS BEEN IN DISCUSSIONS WITH SEVERAL INTERESTED PARTIES INCLUDING NEW YORK MONEY MANAGER MICHAEL STEINHARDT BUT NO CLEAR LEADER HAS EMERGED 9402180167 940218 WHO'S NEWS SUN MICROSYSTEMS NAMES SAMPER AS HEAD OF BIG OPERATING UNIT MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC NAMED J PHILLIP SAMPER EASTMAN KODAK CO'S FORMER VICE CHAIRMAN AS PRESIDENT OF SUN MICROSYSTEMS COMPUTER CORP ITS MAJOR OPERATING UNIT AS PRESIDENT MR SAMPER 59 YEARS OLD WILL HEAD A COMPUTER WORKSTATION COMPANY THAT ACCOUNTS FOR MORE THAN 4 BILLION OF THE CORPORATION'S 43 BILLION IN ANNUAL REVENUE MR SAMPER SUCCEEDS KEVIN MELIA WHO SUN SAID VOLUNTARILY STEPPED DOWN FROM THE POST OF ACTING PRESIDENT FOR FAMILY REASONS MR MELIA REMAINS ON SUN'S INTERNAL EXECUTIVE BOARD SUN SAID MR SAMPER WILL ALSO RESIGN AS A MEMBER OF ITS CORPORATE BOARD DUE TO A COMPANY POLICY THAT ALLOWS ONLY ONE INSIDE DIRECTOR MR SAMPER A 28YEAR KODAK VETERAN LEFT THE ROCHESTER NY COMPANY IN 1990 AFTER HE WAS PASSED OVER FOR THE CHAIRMAN'S JOB AND STARTED HIS OWN CONSULTING COMPANY IN ANNAPOLIS MD HE WAS NAMED TO SUN'S BOARD IN 1991 LAST YEAR HE WAS IN THE RUNNING TO BE KODAK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT LOST OUT AGAIN TO MOTOROLA INC'S CHAIRMAN GEORGE MC FISHER 9402180166 940218 INTERNATIONAL SONY REPORTS PRETAX PROFIT INCREASED 68 BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP HAILING THE BEGINNING OF A RECOVERY IN ITS CORE CONSUMERELECTRONICS BUSINESS SAID PRETAX PROFIT IN THE THREE MONTHS ENDED DEC 31 ROSE 68 FROM A YEAR EARLIER EVEN AS SALES DECLINED 37 IT IS THE FIRST TIME WE HAVE SEEN BRIGHT SPOTS FOR SOME TIME SAID YUKIO OZAWA A SONY INVESTORRELATIONS MANAGER ANALYSTS GENERALLY GREETED THE NEWS WITH ENTHUSIASM SAYING THAT THE ELECTRONICS GIANT IS BEGINNING TO SEE AN UPTURN IN REPLACEMENT DEMAND FOR PRODUCTS SUCH AS TELEVISIONS AND VIDEOCASSETTE RECORDERS SOME HOWEVER ARGUED THAT SONY STILL FACES DAUNTING LONGTERM PROBLEMS BECAUSE OF ITS DEPENDENCE ON LOWPROFIT MANUFACTURED GOODS SONY IS ON THE RECOVERY TRACK AND I THINK THEY WILL DO QUITE WELL SAID DAVID BENDA AN ANALYST WITH BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD OVER THE LONGER TERM HOWEVER I'LL STICK TO THE IDEA THAT THEY HAVE STRUCTURAL PROBLEMS SIMILAR TO THOSE IN THE REST OF THE INDUSTRY A TURNAROUND AT SONY WOULD BE A WELCOME SIGNAL TO OTHER JAPANESE ELECTRONICS GIANTS WHICH FOR YEARS HAVE STRUGGLED IN THE FACE OF LOWCOST COMPETITION AND SATURATED MARKETS OVER THE PAST YEAR JAPAN'S ELECTRONICS COMPANIES HAVE ADDED TO THEIR LIST OF PROBLEMS A STRONG YEN WHICH MAKES EXPORTS MORE EXPENSIVE OVERSEAS AND REDUCES THE YENDENOMINATED VALUE OF OVERSEAS SALES SONY SAID ITS THIRDQUARTER CONSOLIDATED PRETAX PROFIT ROSE TO 5646 BILLION YEN 5438 MILLION FROM 5284 BILLION YEN WHILE SALES FELL TO 1067 TRILLION YEN FROM 1108 TRILLION YEN A YEAR EARLIER SIGNIFICANTLY QUARTERLY OPERATING PROFIT WHICH REFLECTS ITS CORE BUSINESS PERFORMANCE ALSO ROSE 18 TO 702 BILLION YEN UP FROM 593 BILLION YEN A YEAR EARLIER SONY TOOK A 131 MILLION YEN LOSS ON FOREIGN EXCHANGE DURING THE QUARTER A MARKED CONTRAST WITH THE PAST SEVERAL QUARTERS DURING WHICH THE COMPANY HAD A WINDFALL AFTER SUCCESSFULLY HEDGING AGAINST THE YEN'S RISE BUT MR OZAWA SAID HE WAS HEARTENED BY RISING SALES OF SONY'S CORE CONSUMERELECTRONICS PRODUCTS IN JAPAN EUROPE AND THE US SONY NOTED THAT ITS OVERALL SALES IN JAPAN ROSE 28 TO 28719 BILLION YEN IN THE QUARTER EVEN AS JAPAN'S WORST POSTWAR DOWNTURN DRAGGED ON MR OZAWA SAID THE COMPANY'S GAINS WERE DUE LARGELY TO NEW SONY PRODUCTS SUCH AS CDROM DRIVES WHICH PLAY COMPUTER AND GAME SOFTWARE FROM COMPACT DISKS AND ITS RECORDABLE COMPACTDISK PLAYER THE MINIDISC ANALYSTS HOWEVER SAID SONY HAD REAPED GREATER BENEFITS FROM PENTUP REPLACEMENT DEMAND FOR MORE TRADITIONAL PRODUCTS SONY MAY ALSO BE PROFITING AT THE EXPENSE OF ITS SMALLER COMPETITORS PIONEER ELECTRONIC CORP REPORTED YESTERDAY THAT GROUP PRETAX PROFIT IN THE THIRD QUARTER ENDED DEC 31 PLUNGED 74 TO THREE BILLION YEN FROM A YEAR EARLIER AS SALES FELL 17 TO 13985 BILLION YEN PIONEER ALSO LOWERED ITS SALES AND PROFIT FORECAST FOR THE YEAR ENDING MARCH 31 CITING THE STRONG YEN AND INCREASED COMPETITION SONY'S VAUNTED SOFTWARE SIDE ITS HOLLYWOOD STUDIOS AND MUSIC OPERATIONS FARED WORSE WHILE MUSIC SALES IN THE US GREW 46 ON A DOLLAR BASIS SONY'S MOVIE BUSINESS DECLINED 11 IN DOLLAR TERMS LARGELY BECAUSE OF SEVERAL DISAPPOINTING FILMS ON A YEN BASIS SONY'S ENTERTAINMENT REVENUE FELL 02 DURING THE QUARTER TO 23846 BILLION YEN FOR THE NINE MONTHS TO DEC 31 SONY SALES FELL 74 TO 2834 TRILLION YEN WHILE PRETAX PROFIT ROSE 19 TO 1131 BILLION YEN SONY SLIGHTLY REVISED ITS FORECAST FOR THE YEAR ENDING MARCH 31 AND NOW PROJECTS A PRETAX PROFIT OF 100 BILLION YEN AN 8 INCREASE OVER THE PREVIOUS YEAR 9402180165 940218 CANADIAN TRADE SURPLUS OTTAWA CANADA'S TRADE SURPLUS NARROWED TO 524 MILLION CANADIAN DOLLARS US389 MILLION IN DECEMBER PARTLY AS A RESULT OF A RISE IN IMPORTS FROM THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECEMBER SURPLUS WAS THE SMALLEST IN 17 MONTHS THE NOVEMBER SURPLUS TOTALED C708 MILLION CANADIAN IMPORTS OF US GOODS ROSE 3 IN DECEMBER AND ACCOUNTED FOR 74 OF CANADA'S TOTAL IMPORTS CANADIAN EXPORTS TO THE US ROSE 07 IN DECEMBER AND ACCOUNTED FOR 81 OF TOTAL EXPORTS 9402180164 940218 BRITAIN'S CABLE & WIRELESS IS TAKING CAUTIOUS VIEW OF MULTIMEDIA PROJECTS BY ROBERT FISHER SPECIAL TO THE WALL STREET JOURNAL LONDON WHILE OTHER TELECOMMUNICATIONS COMPANIES ARE RUSHING INTO NEW MULTIMEDIA VENTURES BRITAIN'S CABLE & WIRELESS PLC HAS DECIDED TO STICK TO A STEADIER APPROACH WE'RE JUST PUTTING OUR TOE IN THE WATER JAMES ROSS THE COMPANY'S CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW WE'RE LEARNING ABOUT THE MARKET AND WE'RE GOING TO BE PLAYERS BUT WE'RE NOT ENTERING THIS FEEDING FRENZY OF ACQUISITIONS DRAWN BY PROSPECTS OF THE SOCALLED INFORMATION SUPERHIGHWAY MANY OF THE WORLD'S BIGGEST COMMUNICATIONS COMPANIES HAVE BEEN SETTING UP JOINT VENTURES OR SEEKING TO ACQUIRE MEDIA COMPANIES MR ROSS SAID CABLE & WIRELESS HAS NO INTENTION OF BEING LEFT BEHIND AND IS IN A GOOD POSITION TO MOVE INTO THE WORLD OF COMBINED COMMUNICATIONS ENTERTAINMENT AND BUSINESS SERVICES BUT UNTIL RECENTLY THE COMPANY VIEWED ITSELF AS A PROVIDER OF PLAIN OLD TELEPHONE SERVICE TO EMERGING COUNTRIES HE SAID AND IT IS STILL IN THE LEARNING PROCESS WHEN IT COMES TO MORE SOPHISTICATED TECHNOLOGIES ANALYSTS AGREE THAT CABLE & WIRELESS WHILE TAKING A CAUTIOUS APPROACH TO MULTIMEDIA BREAKTHROUGHS ISN'T GUILTY OF FAILING TO KEEP UP WITH OTHER COMMUNICATIONS COMPANIES CHRIS MCFADDEN AT SMITH NEW COURT SECURITIES NOTED THAT THE COMPANY IS ABOUT TO SET UP AN INTELLIGENT COMMUNICATIONS NETWORK FOR THE FAST TRANSMISSION OF DATA THROUGH FIBER NETWORKS THEY'RE NOT LEAPING IN AND BUYING BIG MEDIA PRODUCTION COMPANIES THE ANALYST SAID BUT CABLE & WIRELESS IS MAKING SMALL TACTICAL INVESTMENTS IN BOTH ITS OWN OPERATIONS AS WELL AS VENTURES WITH OTHER COMPANIES TO PUT ITSELF IN POSITION TO TAKE ADVANTAGE OF TECHNOLOGICAL BREAKTHROUGHS CABLE & WIRELESS' 58OWNED SUBSIDIARY HONGKONG TELECOMMUNICATIONS LTD STILL DOMINATES THE OUTLOOK FOR THE PARENT COMPANY DESPITE STRONG GROWTH FROM CABLE & WIRELESS' MOBILE TELEPHONE OPERATIONS IN THE UK IN A RECENT STUDY SALOMON BROTHERS VALUED CABLE & WIRELESS'S STAKE IN HONGKONG TELECOM AT 101 BILLION 149 BILLION COMPARED WITH A VALUE OF 1475 BILLION FOR ALL OF CABLE & WIRELESS ITS NEXT BIGGEST UNIT 80OWNED UK TELEPHONE COMPANY MERCURY COMMUNICATIONS LTD WAS VALUED AT 28 BILLION ANALYSTS EXPECT HONGKONG TELECOM TO PROVE BE THE MAIN GENERATOR OF EARNINGS GROWTH WHEN CABLE & WIRELESS REPORTS ANNUAL EARNINGS IN JUNE THE CONSENSUS FORECAST IS FOR CABLE & WIRELESS TO REPORT A 105 BILLION PRETAX PROFIT FOR THE YEAR ENDING IN MARCH 1994 UP 14 FROM A YEAR EARLIER CABLE & WIRELESS'S ASIAPACIFIC REGION WHICH IS MAINLY HONGKONG TELECOM IS EXPECTED TO CONTRIBUTE ABOUT 720 MILLION OR 69 OF THAT ANALYSTS SAY MR ROSS SAID THAT BECAUSE OF WHERE THE COMPANY HAS ITS OPERATIONS THE VAST MAJORITY OF CABLE & WIRELESS'S FUTURE BUSINESS WON'T BE IN BASIC TELECOMMUNICATIONS SO WHEN YOU REALIZE WE HAVE SO MUCH OF OUR PORTFOLIO IN THE MORE SOPHISTICATED MARKETS EITHER WE PLAY IN THIS EMERGING MULTIMEDIA CONVERGENCE GAME OR IN TIME WE'LL BECOME UNCOMPETITIVE AND WE HAVE NO INTENTION OF THAT HAPPENING MR ROSS SAID THE LEARNING PROCESS INVOLVES CABLE & WIRELESS'S BUYING STAKES IN CABLE TELEVISION OPERATORS IN THE UK AS WELL AS JOINING WITH VENTURES IN THE US AND JAPAN IN OTHER AREAS OF TELECOMMUNICATIONS FOR EXAMPLE IT PLANS TO INTRODUCE ITS PERSONAL COMMUNICATIONS NETWORK PCN MOBILE TELEPHONE SERVICE INTO THE US ALONG WITH ITS PARTNER IN THE PCN VENTURE U S WEST INC THE US AND JAPAN ARE SPECIAL SITUATIONS HE SAID IN THE US THAT'S FIERCELY COMPETITIVE WE'RE NOT GOING TO MAKE THAT A MAJOR REGION AS A PERCENTAGE OF OUR TOTAL ACTIVITY BUT IT'S A REGION WE HAVE TO BE IN IN ORDER TO PARTICIPATE IN ALL THE TECHNOLOGICAL DEVELOPMENTS THAT ARE COMING IN MULTIMEDIA COMMUNICATIONS JAPAN WE FEEL WE HAVE TO BE IN AS A SOURCE OF ALLIANCES TO SERVE OUR INTERNATIONAL CUSTOMERS NEVERTHELESS ASIA AND THE UK WILL REMAIN THE COMPANY'S PRINCIPAL AREAS OF OPERATIONS AND GROWTH HONGKONG TELECOM WAS RECENTLY ROCKED BY THE SUDDEN DEATH OF ITS CHIEF EXECUTIVE OFFICER MIKE GALE WHO DIED IN JANUARY FROM A HEART ATTACK LINUS CHEUNG WILL BECOME THE FIRST CHINESE CHIEF EXECUTIVE OF HONGKONG TELECOM ON MARCH 1 THE ORGANIZATION IN PERSONAL TERMS WAS KNOCKED SIDEWAYS MR ROSS SAID BUT I THINK IN SORT OF CORPORATE TERMS THE SHOW HAS TO GO ON MR CHEUNG HAD BEEN SET TO TAKE OVER AS CHIEF EXECUTIVE ANYWAY HE SAID AND MR GALE WAS TO BECOME MANAGING DIRECTOR IN ASIA NOW A NEW MANAGING DIRECTOR WILL BE NAMED FOR OPERATIONS IN ASIA OUTSIDE OF HONG KONG WITH BOTH POSITIONS REPORTING TO MR ROSS SO I THINK WE HAVE A VERY STRONG TEAM THERE AND I DON'T THINK IN THOSE TERMS YOU WILL SEE ANY DIFFERENCE MR ROSS SAID WE ARE IN A PRIVILEGED SECTOR IN A SENSE WHERE THERE REALLY IS GROWTH MR ROSS SAID WE BENEFIT FROM THE GROWTH PARTICULARLY IN THE FAR EAST WITH THE ACTIVITY INTO AND OUT OF CHINA AND THE FACT THAT THEY ARE GROWING ECONOMIES EXCEPT MAYBE FOR JAPAN FOR THE UK CABLE & WIRELESS HAS BEEN GETTING A SHARP BOOST IN SALES FROM THE INTRODUCTION OF ITS MERCURY ONE2ONE WIRELESS TELEPHONE BUSINESS THE MOBILE PHONE VENTURE WHICH IS A 5050 VENTURE BETWEEN MERCURY AND US WEST HAS TAKEN OFF REMARKABLY FAST WITHOUT TAKING BUSINESS AWAY FROM OTHER MOBILE PHONE COMPANIES MR ROSS SAID WE'VE GROWN THE TOTAL MARKET WHICH IS WHAT WE SAID WE WERE ALWAYS ATTEMPTING TO DO HE SAID THE ONLY PROBLEM WE HAVE IS WE CAN'T KEEP UP WITH THE DEMAND IN THE SHORT TERM 9402180163 940218 EBRD OFFICIAL RESIGNS TO HEAD BNL OF ITALY SARCINELLI SAYS FIRST MOVE WILL BE TO TAKE PRIVATE SCANDALWRACKED BANK BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE NO 3 EXECUTIVE AT THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT RESIGNED TO HEAD AND TAKE PRIVATE ONE OF ITALY'S BIGGEST FINANCIAL INSTITUTIONS BANCA NAZIONALE DEL LAVORO MARIO SARCINELLI 59 YEARS OLD SAID IN AN INTERVIEW THAT HIS FIRST MOVE WILL BE TO TAKE BNL PRIVATE CASHING IN ON THE ENTHUSIASM THAT HAS MET OTHER ITALIAN BANKS WHICH ARE PRIVATIZING BY SELLING SHARES ON THE STOCK MARKET STATEOWNED BNL HAS BEEN WRACKED BY A SCANDAL RELATED TO IMPROPER IRAQI CREDITS ISSUED FROM ITS ATLANTA OFFICE DURING THE 1980S MR SARCINELLI SAID THAT THE ITALIAN GOVERNMENT HAS RECOMMENDED HIM AS CHAIRMAN OF BNL AND THAT HE IS EXPECTED TO BE CONFIRMED AT THE BANK'S SHAREHOLDER MEETING APRIL 15 HE INTENDS TO STAY WITH THE EBRD AS VICE PRESIDENT BANKING OPERATIONS SOUTH UNTIL THEN MR SARCINELLI SAID HE COULDN'T SAY WHEN BNL WOULD GO PRIVATE OR BY WHAT METHOD THE ITALIAN GOVERNMENT HAS ALREADY SOLD OFF CREDITO ITALIANO A CHUNK OF A BANK CALLED IMI AND IT PLANS TO SELL BANCA COMMERCIALE ITALIANA SPA THROUGH A PUBLIC TENDER BY THE END OF FEBRUARY THOSE PRIVATIZATIONS HAVE BEEN EXTREMELY POPULAR AND HEAVILY OVERSUBSCRIBED I HAVE NO PLAN YET FOR PRIVATIZATION OF BNL SAID MR SARCINELLI THE ONLY THING I CAN AFFIRM IS THAT IT IS MY INTENTION TO PRIVATIZE FIRST I HAVE TO SEE HOW THE BANK IS AND WHAT CAN BE DONE AND I DON'T THINK WE CAN DISTURB THE CALENDAR THAT HAS BEEN PREPARED BY THE ITALIAN GOVERNMENT FOR THE OTHER BANK PRIVATIZATIONS THE EXECUTIVE SAID THAT BNL COULD BE PRIVATIZED THROUGH A PUBLIC TENDER OFFER OR PERHAPS THROUGH AN AUCTION OR AGREED SALE WITH SOME MAJOR FOREIGN OR NATIONAL BANKING HOUSE A LISTING ON THE NEW YORK STOCK EXCHANGE HE SAID WOULD BE BENEFICIAL ONE DAY THE GOVERNMENT INTENDS TO SELL BCI SHARES IN THE US FOR LISTING ON THE BIG BOARD MR SARCINELLI REPLACES GIAMPIERO CANTONI WHO STEPPED ASIDE LAST WEEK AFTER GIVING A STATEMENT TO PROSECUTORS INVESTIGATING CORRUPTION IN HIS HOMETOWN BNL SAID THE MATTER RELATED TO ITALY'S BROAD CORRUPTION SCANDAL AND HAD NOTHING TO DO WITH THE BANK A REPLACEMENT FOR MR SARCINELLI AT THE EBRD HASN'T BEEN NAMED IT IS LIKELY HOWEVER THAT SHAREHOLDERS OF THE EBRD WILL REQUIRE ANOTHER EUROPEAN BECAUSE THE BANK'S POLITICS REQUIRE EQUITABLE REPRESENTATION AMONG COUNTRIES THAT FUND THE BANK THE PRESIDENT JACQUES DE LAROSIERE IS FRENCH THE FIRST VICE PRESIDENT RONALD FREEMAN IS AN AMERICAN MR SARCINELLI COULDN'T SAY IF HIS REPLACEMENT WOULD BE AN ITALIAN 9402180162 940218 PRUDENTIAL FACES LIKELIHOOD OF FINE FOR UNLICENSED POLICY SALES IN NEW YORK BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA IS LIKELY TO BE SLAPPED WITH A SIGNIFICANT FINE FOR SELLING UNLICENSED GROUP ANNUITY POLICIES IN NEW YORK STATE NEW YORK REGULATORS HAVE BEEN INVESTIGATING PRUDENTIAL'S SALES OF PENSION CONTRACTS FOR SEVERAL MONTHS AND THE PROBE IS NOW CONCLUDING SAID PEOPLE CLOSE TO THE INVESTIGATION PRUDENTIAL HAS ACKNOWLEDGED SELLING PRODUCTS THAT WERE EITHER REJECTED BY STATE OFFICIALS OR NEVER TAKEN TO THEM FOR APPROVAL WE MADE A MISTAKE SAID A PRUDENTIAL SPOKESMAN THE STATE'S INVESTIGATION HAS UNCOVERED EVIDENCE THAT AT LEAST 900 EMPLOYERS IN THE STATE BOUGHT THE UNAUTHORIZED PENSION CONTRACTS SAID KEVIN FOLEY DEPUTY SUPERINTENDENT FOR THE NEW YORK INSURANCE DEPARTMENT PEOPLE FAMILIAR WITH THE INVESTIGATION SAY NEW YORK IS LIKELY TO IMPOSE A 50000 TO 100000 FINE ON THE COMPANY WHICH ALTHOUGH SMALL BY PRUDENTIAL'S STANDARDS IS LARGE BY THE STANDARDS OF INSURANCE DEPARTMENTS STATE REGULATORS BELIEVE THAT FINES ARE LESS IMPORTANT AS A DETERRENT THAN FOR THE EMBARRASSMENT OF PUBLIC DISCLOSURE THE CASE IS NOTEWORTHY BECAUSE IT COMES AT A TIME WHEN PRUDENTIAL IS SETTLING LEGAL CLAIMS BROUGHT BY INVESTORS WHO PURCHASED LIMITED PARTNERSHIPS FROM ITS PRUDENTIAL SECURITIES BROKERAGE UNIT AND THE CASE SHOWS HOW INSURANCE COMPANIES SOMETIMES IGNORE STATE REGULATION WHEN THEY FIND IT INCONVENIENT BECAUSE EACH OF THE 50 STATES HAS DIFFERENT INSURANCE LAWS INSURANCE COMPANIES OFTEN COMPLAIN ABOUT THE BURDEN OF COMPLYING WITH A VARIETY OF REGULATIONS NEW YORK WHOSE RULES ARE AMONG THE TOUGHEST GOES FURTHER THAN MOST STATES TO ENSURE THAT INSURANCE POLICIES ARE FAIR TO CONSUMERS THE APPROVAL PROCESS IS IMPORTANT IN PROTECTING CONSUMERS FROM BEING RIPPED OFF MR FOLEY SAID THIS IS THE METHOD WE USE TO GUARD AGAINST PROBLEMS ONE OF THE PRODUCTS UNDER SCRUTINY IS A GROUP ANNUITY POLICY CALLED MEDLEY THE PRODUCT MARKETED TO NONPROFIT ORGANIZATIONS ALLOWS AN EMPLOYER'S WORKERS TO INVEST IN A VARIETY OF INVESTMENT OPTIONS FOR THEIR 401K OR OTHER DEFINEDCONTRIBUTION RETIREMENT PROGRAMS DESPITE NEVER HAVING SOUGHT REGULATORY APPROVAL PRUDENTIAL SOLD THE POLICY TO 500 EMPLOYERS IN THE STATE PEOPLE FAMILIAR WITH NEW YORK INSURANCE LAW SAY THE STATE PROBABLY WOULD HAVE REJECTED THE CONTRACT BECAUSE IT COULD HAVE DENIED PROFITS TO INVESTORS THAT'S BECAUSE UNDER CERTAIN CIRCUMSTANCES INVESTORS COULD BE DENIED PROFITS FROM THEIR INVESTMENTS INVESTORS WHO SOUGHT TO GET THEIR MONEY BACK IMMEDIATELY UPON CASHING OUT OF THE POLICY RATHER THAN WAITING FIVE YEARS WOULD GET EITHER THE AMOUNT THEY INVESTED OR THE MARKET VALUE OF THE INVESTMENT WHICHEVER WAS LOWER THAT MEANT THAT IF THE MARKET VALUE OF THE INVESTMENT ROSE DURING THE PERIOD OF THE CONTRACT PRUDENTIAL INSTEAD OF THE INVESTOR WOULD KEEP THE PROFITS MR FOLEY ADDED THAT THE INSURANCE DEPARTMENT FOUND EVIDENCE THAT PRUDENTIAL SOLD OTHER UNAPPROVED PRODUCTS IN ADDITION TO MEDLEY OUR INVESTIGATION GOES FURTHER THAN THAT HE SAID MR FOLEY SAID THE DEPARTMENT HAS ALREADY FOUND ABOUT 900 IMPROPERLY SOLD PENSION CONTRACTS 400 MORE THAN THE MEDLEY PRODUCT THAT SPARKED THE PROBE SOME OF THE CONTRACTS PRUDENTIAL SOLD WERE ACTUALLY REJECTED BY THE STATE HE SAID 9402180161 940218 INTERNATIONAL LITTON'S SOUTH KOREA UNIT TO SHUT DOWN AFTER FAILING TO FIND DOMESTIC PARTNER BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL THE SOUTH KOREAN SUBSIDIARY OF US DEFENSE CONTRACTOR LITTON INDUSTRIES INC IS PREPARING TO CLOSE ITS DOORS AFTER FAILING TO FIND A DOMESTIC PARTNER INTERESTED IN MERGING WITH THE UNPROFITABLE OPERATION LITTON KOREA LTD SAYS IT WILL SHUT ITS OPERATIONS BY FEB 25 UNLESS IT RECEIVES A CREDIBLE BID FROM ONE OF THE COUNTRY'S ESTABLISHED AEROSPACE COMPANIES ITS DEPARTURE WOULD END A 14YEAR PRESENCE IN SOUTH KOREA THAT HAS BEEN HOBBLED BY REGULATIONS FROM BOTH ITS HOST AND HOME GOVERNMENTS THE SUBSIDIARY ALSO WOULD TAKE WITH IT THE KIND OF TECHNOLOGY SOUTH KOREAN INDUSTRY NEEDS TO REALIZE ITS GOAL OF PRODUCING COMMERCIAL AIRCRAFT BY THE END OF THIS CENTURY SINCE IT BEGAN OPERATIONS IN 1982 LITTON HAS DEVELOPED EXISTING DEFENSERELATED AVIONICS SYSTEMS UNDER LICENSE WITH LOCAL AEROSPACE COMPANIES IT HAS HAD LOSSES EVERY YEAR LARGELY BECAUSE OF SOUTH KOREAN GOVERNMENT RESTRICTIONS THAT KEEP IT FROM COMPETING WITH THOSE SAME COMPANIES TO CONTINUE TO OWN AND OPERATE A DEFENSE BUSINESS HERE DOESN'T MAKE SENSE SAID BRUCE WHITEHEAD LITTON'S PRESIDENT TRANSFERRING THE COMPANY IS THE ONLY ALTERNATIVE MR WHITEHEAD SAID LITTON COULD MAKE A PROFIT OF 1 MILLION TO 2 MILLION A YEAR IF THE RESTRAINTS WERE LIFTED THAT MARGIN HE SAID WOULD BE FAR EXCEEDED BY THE VALUE OF THE TECHNOLOGY IT COULD INTRODUCE TO A LOCAL PARTNER EARLY IN 1992 LITTON SET ABOUT PURSUING A STRATEGIC ALLIANCE THAT WOULD COMBINE THE US SUBSIDIARY'S TECHNOLOGICAL RESOURCES SUPPORT NETWORKS AND MARKETING KNOWHOW WITH A SOUTH KOREAN COMPANY'S ACCESS TO LOCAL MARKETS SOUTH KOREA'S TOP THREE AEROSPACE COMPANIES DAEWOO HEAVY INDUSTRIES LTD SAMSUNG AEROSPACE INDUSTRIES CO AND MOST RECENTLY KOREAN AIR LINES CONSIDERED A MERGER BUT BALKED AT THE RESTRICTIONS WE ARE TRYING TO REMOVE THE DISCRIMINATIONS SAID PARK UN SUH ASSISTANT MINISTER FOR TRADE POLICY AT THE MINISTRY FOR TRADE INDUSTRY AND ENERGY BUT IT WILL TAKE TIME MR PARK SAID HE HAD ADVISED DAEWOO SAMSUNG AND KOREAN AIR TO FORM A CONSORTIUM THAT WOULD ABSORB LITTON KOREA BUT NO SUCH GROUP HAS EMERGED EVEN IF THE DOMESTIC RESTRAINTS AGAINST LITTON WERE LIFTED THE COMPANY STILL CARRIES ANOTHER LIABILITY ACCORDING TO KOREAN AIR REGULATIONS FROM THE US DEFENSE DEPARTMENT THAT RESTRICT THE TRANSFER OF SENSITIVE TECHNOLOGY TO OTHER COMPANIES SUCH RULES HAVE FRUSTRATED US DEFENSE CONTRACTORS IN SOUTH KOREA FOR YEARS AND IS A MAJOR REASON FOR THEIR DECLINING PRESENCE HERE MCDONNELL DOUGLAS CORP FOR EXAMPLE CLOSED ITS DOORS IN OCTOBER IN PART BECAUSE OF ITS INABILITY TO OFFER THE TYPE OF EXPERTISE SOUTH KOREAN COMPANIES DEMAND FROM THEIR FOREIGN PARTNERS IF THE KOREAN GOVERNMENT WOULD CHANGE ITS POSITION WE WOULD TAKE ANOTHER HARD LOOK AT LITTON SAID SHIM YI TAEK EXECUTIVE VICE PRESIDENT OF KOREAN AIR BUT WE ALSO UNDERSTAND IT IS HARD FOR LITTON TO CONVINCE THE US GOVERNMENT TO SHARE CERTAIN TECHNOLOGIES MR WHITEHEAD SAID HE WAS PUZZLED BY SUCH APPREHENSIONS ADDING THAT THE US SUBSIDIARY WOULD BE FREE TO SHARE THE EXPERTISE BEHIND SUCH EQUIPMENT AS INERTIALNAVIGATION SYSTEMS AND ELECTRONICWARFARE DEVICES IN WHICH KOREAN AIR HAS EXPRESSED KEEN INTEREST 9402180160 940218 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY SAVING GAMES FROM AMBUSH LOGOCOPS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL KVITFJELL AS TOMMY MOE GLIDES INTO POSITION AT THE STARTING GATE OF THE MEN'S SUPER G SKI RACE TECHNICIANS HOVER OVER HIM TO RUB HIS THIGHS AND ADJUST HIS BINDINGS A FEW STEPS AWAY JACK VINCENT WATCHES THE YOUNG CHAMPION INTENTLY TOMMY LOOKS GOOD TOMMY LOOKS REAL GOOD MR VINCENT SAYS JUST TWO SQUARE CENTIMETERS OVER HIS VISOR HIS STRAP IS CLEAN HE LOOKS GREAT MR VINCENT ISN'T TALKING ABOUT THE ALASKAN SKIER'S RACING CONDITION HE LIKES WHAT HE SEES ON TOMMY MOE A TINY SMITH LABEL BECAUSE IT DOESN'T VIOLATE THE INTERNATIONAL OLYMPIC COMMITTEE'S RULES ON GOGGLE LOGOS MAXIMUM AREA OF SIX SQUARE CENTIMETERS ONLY ONE PER SIDE SURROUNDED BY TENSE SKIERS AND MURMURING COACHES MR VINCENT IS POLICING THE HIGH CREST OF THE KVITFJELL DOWNHILL RUN FOR THE IOC'S OFFICIAL AMBUSH PATROL THE PATROL SWOOPS DOWN ON ALL OF THE OLYMPIC VENUES AND SEARCHES FOR OUTLAW MARKETERS TRYING TO SNEAK A FREE PLUG ONTO INTERNATIONAL TV THE OUTLAWS HAVE BEEN BUSY THIS WEEK AMBUSH PATROL SPOTTED A WILY SKI MANUFACTURER'S BILLBOARD JUST OUTSIDE THE KVITFJELL FENCE IN CLEAR RANGE OF A TELEVISION CREW THE SIGN WENT DOWN AT ONE RACE THE BRAND NAME ON A PIECE OF TECHNICAL EQUIPMENT EXCEEDED THE IOC SIZE LIMIT 10 CENTIMETERS HIGH OR ONETENTH OF THE SURFACE AREA WHICHEVER IS SMALLER AMBUSH PATROL SLAPPED A STICKER OVER THE NAME BANNING BILLBOARDS AND ALL BUT THE MOST DISCREET BRAND IDS IS AN IMPORTANT PART OF THE OLYMPICS' LOFTY PRESTIGE IT'S ALSO A GOLDPLATED BUSINESS STRATEGY THE OLYMPIC COMMITTEE COMMANDS A STEEP PRICE FOR SPONSORSHIPS BECAUSE IT CAN GUARANTEE A PRISTINE SETTING WITHOUT LOTS OF COMPETING COMMERCIAL CLUTTER FOR THE GAMES IN LILLEHAMMER AND ATLANTA THE IOC EXPECTS TO RAKE IN 300 MILLION FROM JUST 10 WORLDWIDE SPONSORS ONE ELITE SPONSOR IS THE ROCHESTER NY EYEWEAR GIANT BAUSCH & LOMB WHICH HELPS TO EXPLAIN MR VINCENT'S FIXATION ON GOGGLES AT THE 1992 WINTER GAMES WHICH THE COMPANY ALSO SPONSORED BAUSCH & LOMB OFFICIALS COUNTED THE MINUTES THAT GOGGLE BRAND NAMES FLASHED ON TV AND ESTIMATED ITS RIVALS SNAGGED MORE THAN 20 MILLION IN FREE PLUGS APPALLED THE COMPANY VOWED TO CRACK DOWN IN LILLEHAMMER AND THE IOC PROMISED TO HELP AND SO IT IS THAT AT THE START OF THE SUPER G MR VINCENT A SILVERHAIRED MARKETING EXECUTIVE ON SKIS GLIDES AMONG THE STONYFACED YOUNG RACERS SILENTLY STAMPING THEIR FEET AND DOING KNEE BENDS HI REMEMBER ME WE'RE CHECKING GOGGLES MR VINCENT CALLS TO A NORWEGIAN COACH MR VINCENT TAKES A ROLL OF DUCT TAPE OUT OF HIS POCKET AND HANGS IT ON A FENCE GOOD STRAPS GOOD STRAPS HE SAYS SURVEYING THE SCENE HE SPOTS A FORERUNNER A SKIER WHO TESTS THE COURSE BEFORE THE RACE HE'LL GET CAMERA TIME MR VINCENT SAYS WITH A FROWN HIS FACE BRIGHTENS AS HE SEES THAT SOMEONE HAS OBLITERATED THE SCOTT BRAND ON THE SKIER'S GOGGLE STRAPS MORE RACERS FILE PAST A PARADE OF FIERCE CONCENTRATION AND FULL COMPLIANCE WITH MARKETING RULES ONE RACER HAS HIS CARRERA STRAP TURNED INSIDE OUT A NORWEGIAN RACER SPORTS TAPE OVER HIS JACKET'S BADGE FOR THE BERGERSEN SHIPPING COMPANY WHICH SPONSORS THE TEAM DANIEL MAHRER OF SWITZERLAND STRETCHING HIS LEGS NEARBY PRESENTS A THORNY DILEMMA LIKE THE REST OF HIS TEAM SPONSORED BY THE SWISS CHEESE UNION HE WEARS A BRIGHT YELLOW UNIFORM EMBLAZONED WITH SWISS CHEESE HOLES WE'VE BEEN TALKING ABOUT IT AT OUR MEETINGS MR VINCENT SAYS BUT THERE'S NOTHING WE CAN DO SWISS CHEESE IS SWISS CHEESE SURVEYING PRACTICE RUNS LAST WEEK HE SPOTTED A SWARM OF OFFENDING SKI RACERS AND SENT WORD TO COACHES AND TECHNICIANS TO GET THEIR STRAPS WITH THE PROGRAM THE MESSAGE GOT THROUGH AT SUNDAY'S MEN'S DOWNHILL MR VINCENT WATCHED HAPPILY AT THE START AS 80 OF THE RACERS TOOK OFF WITH LEGAL STRAPS YESTERDAY'S SUPER G WENT EVEN BETTER WITH NEARLY 95 OF THE RACERS LAWFULLY STRAPPED INCLUDING A CLEAN SWEEP OF THE MEDALS MARKUS WASMEIER OF GERMANY TOOK THE GOLD WITH A TIME OF 13253 AND A SIXSQUARECENTIMETER UVEX LOGO MR MOE AND HIS TINY SMITH LOGO FOLLOWED 008 OF A SECOND BEHIND AND NORWAY'S BRONZE MEDALIST KJETIL ANDRE AAMODT FINISHED AT 13293 WITH AN EXTREMELY DISCREET SWANS BRAND OVER ONE EAR 9402180159 940218 THURSDAY'S MARKETS BONDS TUMBLE AMID FEARS OF INFLATION STOCKS FOLLOW BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A BUOYANT BOND MARKET RALLY REVERSED COURSE AND ENDED IN A ROUT AMID VACILLATING VIEWS ON INFLATION STOCKS FOLLOWED BONDS LOWER AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 1463 POINTS TO 392264 STANDARD & POOR'S 500STOCK INDEX SLIPPED 245 TO 47034 AND THE NASDAQ COMPOSITE INDEX SANK 238 TO 79024 THE BOND MARKET SELLOFF PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND ABOVE 65 FOR THE FIRST TIME SINCE AUGUST 1993 BOND PRICES SWUNG FROM A GAIN OF NEARLY 7/8 POINT AND A YIELD OF 639 TO A LOSS OF MORE THAN A POINT THE INITIAL BOND MARKET RALLY WAS SPARKED BY A BETTERTHANEXPECTED REPORT ON CONSUMER PRICES THE LABOR DEPARTMENT SAID SUCH PRICES WERE UNCHANGED IN JANUARY THE FIRST TIME THE FIGURE HAS SHOWED NO CHANGE SINCE AUGUST 1989 ANALYSTS WERE EXPECTING A RISE OF 03 BUT THE MOOD CHANGED AFTER THE FEDERAL RESERVE BANK OF PHILADELPHIA RELEASED ITS FEBRUARY SURVEY OF BUSINESS ACTIVITY IN ITS REGION THE DATA SHOWED STRENGTH IN MANUFACTURING AND A PICKUP IN PRICES WHICH TOGETHER WERE ENOUGH TO SOUR BOND TRADERS' VIEWS ON THE INFLATION OUTLOOK BOND PRICES TUMBLED SUDDENLY EVERYTHING IS BACK ON THE WATCH LIST INFLATION AND A POTENTIAL FED TIGHTENING SAID JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO WAYNE F WONG SENIOR FIXEDINCOME STRATEGIST AT MARINVEST A SUBSIDIARY OF HONGKONG & SHANGHAI BANK SAID COMMENTS BY LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS ALSO SPOOKED BOND TRADERS ALTHOUGH MS TYSON SAID INFLATION REMAINS UNDER CONTROL TRADERS FOCUSED ON HER REMARK THAT STRONG DECEMBER TRADE DATA RELEASED YESTERDAY MAY CAUSE AN UPWARD REVISION IN FOURTHQUARTER GROSS DOMESTIC PRODUCT THE MOVE ABOVE A 65 YIELD ON THE 30YEAR BOND IS SIGNIFICANT BECAUSE IT SETS THE GROUNDWORK FOR A PUSH TO 675 THE LEVEL THAT MANY ANALYSTS NOW EXPECT BY YEAR END GRUNTAL'S MR BATTIPAGLIA SAID WE THOUGHT THE MOVE UP WOULD BE A GRADUAL PROCESS HE SAID BUT MANY TRADERS ARE COMING TO THE CONCLUSION THAT THE CYCLE OF EASING RATES IS OVER THE BOND MARKET'S FICKLE TRADING DAY UNDERSCORES TRADERS' JITTERY NERVES SINCE THE FED TIGHTENED MONETARY POLICY ON FEB 4 MANY ANALYSTS SAID THAT THEY CONTINUE TO EXPECT A FURTHER SMALL BOOST IN SHORTTERM INTEREST RATES SOON STOCKS RODE THE TAIL WINDS OF HIGHER BOND PRICES EARLY IN THE DAY AND SUFFERED AS BOND PRICES TUMBLED THE INDUSTRIAL AVERAGE CLIMBED 20 POINTS BEFORE COMPUTERGUIDED PROGRAM SELLING WIPED OUT THE GAINS ALTHOUGH WE SPEAK OF A TRANSITION TO AN EARNINGSDRIVEN STOCK MARKET STOCKS STILL VERY MUCH DANCE TO THE DRUMBEAT OF INTEREST RATES MR BATTIPAGLIA SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 023 TO 11616 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 3389 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1251 ISSUES FELL AND 882 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN A POINT OR MORE THAN 10 FOR EACH 1000 FACE AMOUNT TO YIELD 654 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17233 MARKS AND 10410 YEN COMPARED WITH 17233 MARKS AND 10380 YEN WEDNESDAY 9402180158 940218 ECONOMY TRADE DEFICIT NARROWED IN DECEMBER BUT GAP FOR '93 WAS LARGEST IN 5 YEARS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DECEMBER WASN'T A BAD MONTH FOR US TRADE BUT 1993 WAS AWFUL THE US TRADE DEFICIT WAS THE BIGGEST IN FIVE YEARS AND THE TRADE GAP WITH JAPAN GREW TO A RECORD THE COMMERCE DEPARTMENT SAID THE OVERALL TRADE GAP WAS 741 BILLION IN DECEMBER 227 BILLION LESS THAN IN NOVEMBER THE NARROWING WAS DUE TO A 49 INCREASE IN EXPORTS LED BY CAPITAL GOODS AND A 06 DECLINE IN IMPORTS AS PURCHASES OF INDUSTRIAL SUPPLIES AND CONSUMER GOODS FELL OFF A BIT THE SURPRISE DECEMBER IMPROVEMENT CAUSED MANY ECONOMISTS TO BEGIN RATCHETING UP THEIR ESTIMATES OF FOURTHQUARTER GROWTH THE COMMERCE DEPARTMENT SAID LAST MONTH THAT THE ECONOMY SURGED AT A 59 ANNUAL RATE IN THE FOURTH QUARTER BUT IT WILL REVISE ITS ESTIMATE TWICE MORE BASED ON MORECOMPLETE INFORMATION SUCH AS THE TRADE FIGURES BRIAN HORRIGAN AN ECONOMIST WITH LOOMIS SAYLES & CO IN BOSTON SAID THAT GROWTH COULD BE REVISED AS HIGH AS 7 BUT THE ENCOURAGING DECEMBER PERFORMANCE DIDN'T PREVENT THE US FROM TURNING IN ITS LARGEST TRADE GAP SINCE THE 1185 BILLION IN 1988 LAST YEAR'S DEFICIT BALLOONED TO 11578 BILLION FROM 845 BILLION IN 1992 SLOWING ECONOMIES OVERSEAS PARTICULARLY IN EUROPE AND JAPAN PUT A BIG CRIMP ON US EXPORTS LAST YEAR ALTHOUGH EXPORTS STILL CLIMBED TO A RECORD LAST YEAR IMPORTS GREW MORE THAN TWICE AS FAST WIDENING THE TRADE GAP IN ADDITION THE US TRADE DEFICIT WITH JAPAN HIT 5932 BILLION LAST YEAR ITS HIGHEST LEVEL EVER THE BIG GAP HIGHLIGHTS THE CLINTON ADMINISTRATION'S CONCERN ABOUT OPENING JAPANESE MARKETS TO MORE US PRODUCTS COMMERCE UNDERSECRETARY JEFFREY GARTEN SAID THE US PARTICULARLY WOULD LIKE TO OPEN JAPAN UP TO USMADE TELECOMMUNICATIONS SPACE INFRASTRUCTURE AND MEDICAL EQUIPMENT ANALYSTS SAID THE NARROWING OF THE TRADE DEFICIT IN DECEMBER ISN'T LIKELY TO CONTINUE FOR ONE MUCH OF THE EXPORT GROWTH CAME FROM CIVILIAN AIRCRAFT WHICH TENDS TO CAUSE BIG JUMPS IN THE DOLLAR VALUE OF EXPORTS BUT ISN'T SUSTAINED MONTH AFTER MONTH FURTHERMORE THE WEAKNESS IN IMPORTS WAS CAUSED ALMOST ENTIRELY BY FALLING PETROLEUM PRICES AND DIDN'T REPRESENT A DECLINE IN CONSUMER STRENGTH MR HORRIGAN SAID MR HORRIGAN ESTIMATED THAT THE TRADE GAP WILL WIDEN FURTHER IN 1994 PERHAPS BY AS MUCH AS 30 BILLION AS OVERSEAS TRADING PARTNERS REMAIN ECONOMICALLY WEAK BUT THE POOR PERFORMANCE ISN'T LIKELY TO HURT OVERALL US ECONOMIC GROWTH SEVERELY THAT'S BECAUSE OTHER SECTORS OF THE ECONOMY SUCH AS HOUSING CAPITAL INVESTMENT AND AUTOS ARE QUITE STRONG THE TRADE DRAG IS NOT GOING TO TAKE THE PUNCH OUT OF THIS PARTY MR HORRIGAN SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9402180157 940218 NOBEL INSURANCE ONETIME GAIN HAMILTON BERMUDA NOBEL INSURANCE LTD SAID IT WILL REPORT A ONETIME PRETAX GAIN OF 57 MILLION OR 82 CENTS A SHARE FOR ITS FOURTH QUARTER AND 1993 FULLYEAR RESULTS FROM REDUCTIONS IN CLAIMS RESERVES FOR PRIOR YEARS IN THE YEAREARLIER FOURTH QUARTER THE COMPANY REPORTED NET INCOME OF 143 MILLION OR 214 A SHARE FOR 1992 THE COMPANY REPORTED NET INCOME OF 191 MILLION OR 289 A SHARE THE COMPANY SAID 1993 RESULTS WILL BE RELEASED IN MIDMARCH 9402180156 940218 CANADIAN STEEL OUTPUT DROPS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 246071 METRIC TONS IN THE WEEK ENDED SATURDAY A 78 DECLINE FROM 266846 TONS THE PREVIOUS WEEK AND AN 11 DECLINE FROM 277021 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRIMARY STEEL OUTPUT TOTALED 1516055 TONS A 71 DECLINE FROM 1631345 TONS A YEAR EARLIER 9402180155 940218 KAISER ALUMINUM REFINANCING HOUSTON KAISER ALUMINUM CORP SAID IT HAS COMPLETED A 11 BILLION REFINANCING AND RECAPITALIZATION PROGRAM THAT INCREASES LIQUIDITY REDUCES INTEREST RATES AND EXTENDS DEBT MATURITIES THE ALUMINUM PRODUCER 61 OF WHICH IS HELD BY MAXXAM INC SAID IT COMPLETED THE SALE OF EIGHT MILLION SHARES OF 8255 PREFERRED REDEEMABLE INCREASED DIVIDEND EQUITY SECURITIES FOR ABOUT 94 MILLION IN PROCEEDS THE SALE OF 225 MILLION IN 9 7/8 SENIOR NOTES AND THE SIGNING OF A FIVEYEAR 250 MILLION REVOLVING CREDIT AGREEMENT PREVIOUSLY KAISER HAD COMPLETED THE SALE OF 400 MILLION IN 12 3/4 SENIOR SUBORDINATED NOTES AND A PUBLIC OFFERING OF 172 MILLION 65 CENT DEPOSITARY SHARES FOR 125 MILLION 9402180154 940218 PRATT HOTEL UNITS' OFFERINGS DALLAS PRATT HOTEL CORP SAID ITS SUBSIDIARIES COMPLETED TWO PUBLIC DEBT OFFERINGS TOTALING 270 MILLION PROCEEDS WERE USED TO REFINANCE SUBSTANTIALLY ALL OF THE CASINORELATED DEBT OF THE COMPANY SALOMON BROTHERS INC AND BEAR STEARNS & CO WERE THE UNDERWRITERS 9402180153 940218 BURNS PHILP BUYS SPICE CONCERN SYDNEY AUSTRALIA BURNS PHILP & CO SAID IT ACQUIRED KARL OSTMANN GMBH A GERMAN CONSUMER HERBS AND SPICES CONCERN FOR ABOUT 182 MILLION MARKS 1056 MILLION PLUS WORKING CAPITAL THE COMPANY SAID THE ACQUISITION WILL COMPLEMENT ITS EXISTING SPICE BUSINESSES IN THE UK US AND DUTCH MARKETS THE ACQUISITION IS SUBJECT TO APPROVAL BY THE GERMAN FEDERAL CARTEL OFFICE OSTMANN HAS ANNUAL GROSS SALES OF 190 MILLION MARKS 9402180152 940218 ASSETS OF MONEY FUNDS DOWN IN LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS SLID 417 BILLION TO 58516 BILLION FROM A REVISED 58933 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 654 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 2086 MILLION TO 4023 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEY MARKET FUNDS INCREASED BY 437 MILLION TO 31179 BILLION ASSETS OF 248 RETAIL TAXEXEMPT FUNDS DECREASED BY 2284 MILLION TO 9051 BILLION ASSETS OF THE 283 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 438 BILLION TO 18286 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 229 TAXABLE MONEY MARKET FUNDS DROPPED BY 445 BILLION TO 16001 BILLION ASSETS OF 54 TAXEXEMPT FUNDS INCREASED BY 703 MILLION TO 2286 BILLION 9402180151 940218 ROSS STORES PLANS EXPANSION NEWARK CALIF ROSS STORES INC SAID IT EXPECTS TO OPEN 25 NEW STORES IN 1994 EXPANDING ITS BASE OF RETAIL OUTLETS BY 11 TO 251 STORES IN 18 STATES THE DISCOUNT CHAIN SAID IT WILL FOCUS GROWTH ON DOWNTOWN MARKETS AND WILL OPEN FLAGSHIP STORES THIS YEAR IN DOWNTOWN MIAMI AND PHILADELPHIA THE COMPANY EXPECTS TO OPEN THREE NEW STORES EACH IN CALIFORNIA AND FLORIDA THIS YEAR 9402180150 940218 FORMER TREASURER OF US PLEADS GUILTY IN PROBE OF REAGANERA HUD SCANDAL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER US TREASURER CATALINA VASQUEZ VILLALPANDO PLEADED GUILTY TO OBSTRUCTING AN INDEPENDENT COUNSEL'S PROBE INTO CORRUPTION AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SHE ALSO PLEADED GUILTY TO JUSTICE DEPARTMENT CHARGES OF TAX EVASION AND NOT DISCLOSING TO CONGRESS AND THE TREASURY DEPARTMENT INCOME FROM HER FORMER PRIVATE EMPLOYER WHILE SHE WAS TREASURER MS VILLALPANDO ADMITTED CONCEALING INCOME FROM HER PREVIOUS EMPLOYER INFORMATION THAT MAY HAVE BEEN RELEVANT TO HER GOVERNMENT SERVICE SHE DIDN'T REPORT 167901 IN 1989 TAXABLE INCOME OR PAY 47013 TAXES ON IT IN THE INDEPENDENT COUNSEL CASE MS VILLALPANDO WHO WAS TREASURER IN THE BUSH ADMINISTRATION FROM 1989 UNTIL JANUARY 1993 HAD DOCUMENTS DESTROYED AFTER THEY WERE SUBPOENAED BY A FEDERAL GRAND JURY THIS ONECOUNT FELONY CONVICTION CARRIES A PENALTY OF UP TO FIVE YEARS IMPRISONMENT AND A MAXIMUM FINE OF 250000 THE TAX EVASION AND NONDISCLOSURE CONVICTIONS CARRY POSSIBLE PENALTIES OF 10 YEARS IN PRISON AND A 500000 FINE SHE REMAINS FREE UNTIL SENTENCED LATER THIS YEAR MS VILLALPANDO'S PLEA BRINGS THE NUMBER OF CONVICTIONS RELATED TO THE REAGANERA HUD SCANDAL TO 12 THE CORRUPTION INCLUDED BRIBERY AND ISSUING HUD CONTRACTS ON THE BASIS OF POLITICAL FAVORITISM SEVERAL HIGHRANKING FORMER HUD OFFICIALS HAVE BEEN CONVICTED INCLUDING THREE WHO WERE TOP ASSISTANTS TO FORMER SECRETARY SAMUEL PIERCE AND THREE FORMER ASSISTANT SECRETARIES MR PIERCE HASN'T BEEN CHARGED BY ENTERING THE PLEA MS VILLALPANDO ADMITTED THAT IN JULY 1992 WHILE SHE WAS TREASURER SHE DIRECTED THE MANAGER OF COMMUNICATIONS INTERNATIONAL INC'S WASHINGTON OFFICE TO DESTROY FILES THAT HAD BEEN SUBPOENAED BY THE GRAND JURY SHE THEN TOLD HER LAWYER TO TELL INVESTIGATORS THAT SHE HAD NO DOCUMENTS COVERED BY THE SUBPOENA MS VILLALPANDO HAD BEEN EXECUTIVE VICE PRESIDENT OF CII'S WASHINGTON OFFICE CII WAS A CLOSELY HELD ATLANTABASED TELECOMMUNICATIONS COMPANY THOUGH A SUBSIDIARY CII SOUGHT HUD FUNDS ACCORDING TO THE INDEPENDENT COUNSEL'S OFFICE AFTER THE COURT HEARING MS VILLALPANDO ISSUED A STATEMENT THAT SAID SHE ACCEPTED RESPONSIBILITY FOR NEGLECTING TO ATTEND TO SOME VERY IMPORTANT PERSONAL MATTERS WITH THE CARE AND IMMEDIACY THEY REQUIRED THE ASSOCIATED PRESS REPORTED INDEPENDENT COUNSEL ARLIN ADAMS SAID MS VILLALPANDO'S PLEA IS A CLEAR WARNING TO THOSE WHO BY WORD OR DEED ACT TO OBSTRUCT THIS OFFICE'S INVESTIGATION OF HUD THAT SUCH CONDUCT WILL BE PROSECUTED WITH ALL AVAILABLE RESOURCES DESPITE MS VILLALPANDO'S LEGAL DIFFICULTIES THE TREASURY IS STILL PRINTING CURRENCY THAT BEARS HER SIGNATURE JUST LAST WEEK THE SENATE CONFIRMED HER SUCCESSOR MARY ELLEN WITHROW AND THE TREASURY'S BUREAU OF PRINTING AND ENGRAVING WILL BEGIN SPEWING FORTH BILLS WITH THE SIGNATURES OF MS WITHROW AND TREASURY SECRETARY LLOYD BENTSEN IN MARCH 9402180149 940218 CANADA'S NEW ORDERS RISE OTTAWA CANADIAN MANUFACTURERS RECORDED A 62 RISE IN NEW ORDERS IN DECEMBER FROM NOVEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NEW ORDERS INCLUDED LARGE EXPORT CONTRACTS FOR AIRCRAFT RAILROAD ROLLING STOCK AND MACHINERY MANUFACTURERS' SHIPMENTS DECLINED 01 IN DECEMBER FROM NOVEMBER PARTLY BECAUSE OF A TEMPORARY SHUTDOWN OF SOME AUTO PLANTS FOR MODEL CHANGES BEFORE DECEMBER SHIPMENTS HAD INCREASED FOR FOUR CONSECUTIVE MONTHS 9402180148 940218 FIRST OF AMERICA BANK BUYBACK KALAMAZOO MICH FIRST OF AMERICA BANK CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO THREE MILLION SHARES OF ITS COMMON STOCK OR 5 OF THE 595 MILLION SHARES OUTSTANDING IN THE OPEN MARKET FROM TIME TO TIME 9402180147 940218 ALEXANDER ENERGY CORP OKLAHOMA CITY ALEXANDER ENERGY CORP SAID MERGER TALKS WITH NAHAMA & WEAGANT ENERGY CO OF BAKERSFIELD CALIF ENDED AND THAT NO FURTHER DISCUSSIONS WERE ANTICIPATED THE OIL AND NATURAL GAS COMPANIES PREVIOUSLY ANNOUNCED PLANS TO MERGE IN ORDER TO ATTRACT MORE INSTITUTIONAL INVESTORS AND TO LOWER CAPITAL COSTS A SPOKESWOMAN FOR ALEXANDER ENERGY SAID THE COMPANIES MUTUALLY AGREED TO TERMINATE DISCUSSIONS AFTER FAILING TO REACH A DEFINITIVE AGREEMENT 9402180146 940218 CANADIAN WAGE INCREASES OTTAWA MAJOR CANADIAN COLLECTIVE BARGAINING SETTLEMENTS REACHED IN 1993 PROVIDED FOR WAGE INCREASES AVERAGING 07 THE FEDERAL LABOR DEPARTMENT SAID THE 1993 FIGURE WAS THE LOWEST SINCE THE DEPARTMENT STARTED COMPILING WAGE DATA FROM COLLECTIVE AGREEMENTS IN 1967 SETTLEMENTS IN 1992 PROVIDED FOR AVERAGE WAGE INCREASES OF 21 THE DEPARTMENT ALSO REPORTED THAT IN 1993 TIME NOT WORKED AS A RESULT OF MAJOR WORK STOPPAGES FELL TO ITS LOWEST RATE IN ALMOST HALF A CENTURY THE TIME LOSS WAS 568910 WORKING DAYS OR 002 OF TOTAL WORKING TIME 9402180145 940218 FIGGIE SUSPENDS ITS DIVIDEND GETS FRESH CASH COMPANY ELEVATES DIRECTOR TO VICE CHAIRMAN POST STOCK PRICE FALLS 15 BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL CASHSTRAPPED FIGGIE INTERNATIONAL INC ELIMINATED ITS QUARTERLY DIVIDEND AND RECEIVED A TEMPORARY CASH INFUSION FROM A NEW LENDER THE WILLOUGHBY OHIO INDUSTRIAL COMPANY ALSO NAMED A LONGTIME OUTSIDE DIRECTOR AS A NEW VICE CHAIRMAN ALTHOUGH IT STOPPED SHORT OF BRINGING IN A TOTAL OUTSIDER TO BOLSTER MANAGEMENT MEANWHILE FIGGIE SIGNALED THAT ITS 1993 OPERATING LOSSES AND YEAREND ADJUSTMENTS WOULD BE GREATER THAN PREVIOUSLY EXPECTED WHEN REPORTED IN TWO TO THREE WEEKS THE COMPANY'S CLASS A SHARE FELL 1875 OR 15 TO 10875 IN NASDAQ STOCK MARKET TRADING THE CONGLOMERATE SAID IT RECEIVED A NEW 40 MILLION ONEYEAR RENEWABLE LOAN FROM CIT GROUP WHICH IS SECURED BY RECEIVABLES THAT ELIMINATED THE NEED TO ASK ITS OTHER BANKS WHICH HAVE EXTENDED A 150 MILLION CREDIT LINE FOR MORE FUNDS WITH CIT'S SUPPORT WE HAVE ADDRESSED OUR NEARTERM CASH FLOW NEEDS WHILE WE CONTINUE TO PUT INTO PLACE THE ELEMENTS OF A MORE COMPREHENSIVE DELEVERAGING OF THE BALANCE SHEET CHAIRMAN HARRY E FIGGIE JR SAID IN A STATEMENT NEVERTHELESS FIGGIE SOUGHT TO CALM ITS SYNDICATE OF BANKERS AT A MEETING YESTERDAY THE BANKERS EXPRESSED CONCERNS ABOUT THE COMPANY'S FINANCIAL PLIGHT AND THE NEED FOR NEW MANAGEMENT ACCORDING TO A PERSON WHO ATTENDED THE MEETING A COMPANY SPOKESMAN CONFIRMED THAT THOSE ISSUES WERE DISCUSSED BUT SAID THEY WERE NOT REPRESENTATIVE OF THE WHOLE MEETING WALL STREET WAS HOPING FOR STRONGER OUTSIDE MANAGEMENT TO HELP FIGGIE INSTEAD THE COMPANY NAMED A DIRECTOR 66YEAROLD WALTER M VANNOY WHO HAS BEEN ON THE BOARD SINCE 1981 ALTHOUGH THE CURRENT VICE CHAIRMAN HARRY E FIGGIE III 40 WILL CONTINUE TO HOLD THAT TITLE MR VANNOY WILL BE SECOND IN COMMAND THE COMPANY SAID MR VANNOY FORMERLY SERVED AS VICE CHAIRMAN OF MCDERMOTT INTERNATIONAL INC AND AS PRESIDENT AND CHIEF OPERATING OFFICER OF BABCOCK & WILCOX THE COMPANY SAID SUSPENSION OF THE SIXCENTSASHARE QUARTERLY DIVIDEND WHICH WOULD HAVE BEEN PAYABLE IN MARCH ON BOTH CLASS A AND CLASS B COMMON STOCK WILL SAVE IT ABOUT 4 MILLION A YEAR THE BOARD FELT THE DIVIDEND SUSPENSION WAS PRUDENT UNTIL WE EFFECT A PROFITABILITY TURNAROUND THE ACTIONS COUPLED WITH THE COMPANY'S PREVIOUSLY ANNOUNCED PLAN TO SELL ITS RAWLINGS SPORTING GOODS DIVISION AND TWO OTHER DIVISIONS ARE THE FIRST PHASE OF A TURNAROUND PLAN TO BE DISCLOSED WITHIN THE NEXT TWO WEEKS FIGGIE SAID AMONG OTHER THINGS THE COMPANY WANTS TO LOP 200 MILLION OFF ITS 450 MILLION OF DEBT THIS YEAR 9402180144 940218 WHO'S NEWS NALCO CHEMICAL CO NALCO CHEMICAL CO NAPERVILLE ILL THE COMPANY SAID ITS BOARD WILL AT ITS APRIL 20 MEETING NAME EJ MOONEY CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER TO SERVE ADDITIONALLY AS CHIEF EXECUTIVE OFFICER IN THE CHIEF EXECUTIVE POST THE 52YEAROLD MR MOONEY WILL SUCCEED WH CLARK 62 WHO WILL RETAIN THE CHAIRMAN'S TITLE UNTIL HE RETIRES JULY 1 THE COMPANY SAID IT EXPECTS MR MOONEY WHO IS DROPPING THE CHIEF OPERATING OFFICER TITLE TO BE NAMED CHAIRMAN AT THAT TIME MR CLARK SAID HE RECOMMENDED THE BOARD TAKE THIS ACTION AT THIS TIME IN ORDER TO ENSURE A SMOOTH TRANSITION 9402180143 940218 MILES TO BUY STAKE IN SCHEIN FOR 310 MILLION PACT SHOWS BIG DRUG FIRMS CONTINUE TO SEEK SHARE OF THE GENERIC MARKET BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MILES INC SAID IT WILL ACQUIRE A MINORITY STAKE IN GENERICDRUG COMPANY SCHEIN PHARMACEUTICAL INC FOR ABOUT 310 MILLION AN ALLIANCE THAT BOTH COMPANIES SAID THEY NEED TO REMAIN COMPETITIVE IN THE FASTCHANGING PHARMACEUTICAL INDUSTRY THE PACT SHOWS THAT BIG PHARMACEUTICAL COMPANIES CONTINUE TO HAVE A STRONG APPETITE FOR GENERICDRUG COMPANIES DEMAND FOR LESSEXPENSIVE GENERIC DRUGS IS RISING RAPIDLY AS MANAGEDCARE BUYERS AND HEALTHCARE REFORMERS SEEK WAYS TO CONTROL DRUG COSTS AS THE MARKET EVOLVES WE THINK WE WILL SEE MUCH MORE CONCENTRATION OF PURCHASING POWER IN FEWER HANDS SAID HORST KD WALLRABE PRESIDENT OF MILES'S PHARMACEUTICAL DIVISION MILES IS A UNIT OF GERMAN CHEMICAL AND DRUG CONCERN BAYER AG AS A RESULT WE SEE LARGER PURCHASERS BEING INTERESTED IN WORKING WITH AS FEW VENDORS AS POSSIBLE THE VENDOR WHO CAN PROVIDE THE GREATEST PORTFOLIO PROBABLY HAS THE BEST OPPORTUNITY TO DO BUSINESS HE SAID MILES AND SCHEIN EXECUTIVES SAID THEY ALSO ARE IN DISCUSSIONS WITH OTHER DRUG COMPANIES ABOUT FORMING A LARGER ALLIANCE TO CREATE A BROADER PRODUCT PORTFOLIO AND INNOVATIVE COSTCONTAINMENT AGREEMENTS HEMANT SHAH AN INDEPENDENT ANALYST IN WARREN NJ SAID THAT TO BE INCLUDED IN TALKS AMONG DRUG MAKERS ABOUT FORMING VENDOR ALLIANCES MILES NEEDED SCHEIN MILES ALONE DOESN'T HAVE MUCH TO OFFER AN ALLIANCE HE SAID AT THE PRICE MILES AGREED TO PAY FOR THE 283 OF THE CLOSELY HELD COMPANY SCHEIN WOULD BE VALUED AT ABOUT 11 BILLION OR 27 TIMES ITS ANNUAL SALES OF ABOUT 400 MILLION THAT IS ABOUT IN LINE WITH WHAT OTHER BIG DRUG MAKERS HAVE PAID FOR GENERICDRUG COMPANIES THE PREMIUM HOWEVER IS WELL BELOW THAT PAID BY CHEMICAL CONCERN HOECHST CELANESE CORP A UNIT OF GERMANY'S HOECHST AG FOR A MAJORITY STAKE IN THE MUCH SMALLER GENERICDRUG MANUFACTURER COPLEY PHARMACEUTICAL INC LAST YEAR HOECHST CELANESE PAID THE EQUIVALENT OF 20 TIMES COPLEY'S FISCAL 1993 SALES COPLEY COMMANDED A HIGHER PREMIUM IN PART BECAUSE IT IS SOLELY A MANUFACTURER WHILE SCHEIN ALSO DISTRIBUTES OTHER COMPANIES' GENERIC DRUGS A LOWERMARGIN BUSINESS ONE ANALYST SUGGESTED ACQUISITIONS OF GENERICDRUG COMPANIES WILL CONTINUE PREDICTED JACK LAMBERTON A NEW YORK ANALYST AT NATWEST SECURITIES CORP THREE YEARS FROM NOW THE GENERICDRUG INDUSTRY WILL BE PRIMARILY A SUBSIDIARY OF THE BRANDNAME DRUG INDUSTRY HE SAID THE LOWER PREMIUM ALSO REFLECTS THE INCREASINGLY DIFFICULT ENVIRONMENT FOR GENERICDRUG COMPANIES MR SHAH SAID WITH MERCK & CO AND OTHER RESEARCHBASED DRUG COMPANIES GETTING INTO THE GENERICDRUG BUSINESS COMPANIES SUCH AS SCHEIN WILL FIND IT INCREASINGLY DIFFICULT TO GET THEIR DRUGS ACCEPTED FOR MANAGEDCARE LISTS OF RECOMMENDED DRUGS HE SAID SCHEIN BASED IN FLORHAM PARK NJ WILL BRING TO THE ALLIANCE 350 GENERIC DRUGS WHILE PITTSBURGHBASED MILES WILL CONTRIBUTE ABOUT 70 BRANDED PHARMACEUTICALS INCLUDING THE ANTIINFECTIVE CIPRO AND ADALAT CC A HEART DRUG INTRODUCED LAST YEAR TO COMPETE WITH PFIZER INC'S BLOCKBUSTER PROCARDIA XL SCHEIN AND MILES DISCUSSED VARIOUS RELATIONSHIPS WITH OTHER COMPANIES THEIR EXECUTIVES SAID SCHEIN WHICH STARTED IN 1932 AS A CORNER DRUGSTORE IN THE WOODSIDE AREA OF QUEENS NY WAS ATTRACTED BY THE ACCESS TO BULK CHEMICALS THROUGH MILES AND BAYER AS WELL AS THE POSSIBILITIES OF TAPPING THE COMPANIES' INTERNATIONAL MARKETING NETWORKS SAID MARTIN SPERBER SCHEIN'S CHAIRMAN AND CHIEF EXECUTIVE MILES ALSO IS IN DISCUSSIONS WITH OTHER MAJOR PHARMACEUTICAL COMPANIES ABOUT FORMING AN ALLIANCE TO PACKAGE A VARIETY OF THERAPEUTIC PRODUCTS MR WALLRABE SAID AMONG THE IDEAS BEING DISCUSSED IS OFFERING MANAGEDCARE BUYERS ALL THE DRUGS NEEDED TO TREAT A DISEASE SUCH AS HYPERTENSION FOR A SET RATE PER PATIENT PER YEAR AN ARRANGEMENT CALLED CAPITATION THE COMPANIES ALSO WOULD ASK FOR DIRECT ACCESS TO PATIENTS TO INFLUENCE DIET LIFESTYLE AND OTHER HEALTH DECISIONS THAT MAY REDUCE THEIR NEED FOR DRUGS MR SPERBER SAID SCHEIN ALSO IS INVOLVED IN THOSE DISCUSSIONS MR SPERBER AND MR WALLRABE DECLINED TO IDENTIFY THE OTHER COMPANIES INVOLVED THE TALKS ARE GOING SOMEWHERE MR WALLRABE SAID THEY AREN'T EASY DISCUSSIONS HE ADDED BECAUSE OF THE ANTITRUST CONCERNS AND FIGURING OUT HOW TO SHARE THIS RISK AND SHARE THE SPOILS 9402180142 940218 KANEBO'S JOINT VENTURE IN CHINA TOKYO KANEBO LTD A MAJOR JAPANESE TEXTILE SPINNER AGREED TO SET UP A JOINT VENTURE IN CHINA TO PRODUCE POLYESTER AND NYLON FILAMENTS BEGINNING THIS YEAR A COMPANY SPOKESMAN SAID THE FACTORY TO BE OWNED BY KANEBO AND CHINA'S SHAOXING HUAZHONG SYNTHETIC FIBERS CO IS TO PRODUCE 6000 TONS OF POLYESTER FILAMENT AND 2000 TONS OF NYLON FILAMENT ANNUALLY 9402180141 940218 WHO'S NEWS ALZA CORP ALZA CORP PALO ALTO CALIF PETER D STAPLE WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL OF THIS MAKER OF DRUG DELIVERY SYSTEMS MR STAPLE 42 YEARS OLD WAS VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL OF CHIRON CORP HE SUCCEEDS EDWARD MANDELL WHO WAS NAMED ALSA'S ASSOCIATE GENERAL COUNSEL 9402180140 940218 NEW JERSEY TO SETTLE US JOBBIAS SUIT PAY MORE THAN 7 MILLION WASHINGTON THE US JUSTICE DEPARTMENT SAID NEW JERSEY WILL PAY MORE THAN 7 MILLION TO SETTLE A SIXYEAROLD SUIT ALLEGING THE STATE DISCRIMINATED AGAINST BLACKS AND WOMEN IN ITS HIRING PRACTICES FOR ENTRYLEVEL ENFORCEMENT AND CORRECTIONS POSTS THE SETTLEMENT IS THE SECOND LARGEST OBTAINED BY THE JUSTICE DEPARTMENT IN AN EMPLOYMENTDISCRIMINATION CASE AGAINST A STATE OR LOCAL GOVERNMENT THE DEPARTMENT SAID THE SUIT CHARGED THAT NEW JERSEY ADMINISTERED STATEDEVELOPED WRITTEN TESTS THAT DISPROPORTIONATELY EXCLUDED MINORITIES AND THAT WERE NOT PREDICTIVE OF SUCCESSFUL JOB PERFORMANCE THE JUSTICE DEPARTMENT ALSO ALLEGED THAT THE STATE UNFAIRLY EXCLUDED WOMEN FROM SOME POLICE JOBS BY GIVING A PHYSICALAGILITY TEST THAT WAS NOT RELATED TO SUCCESS ON THE JOB THE SUIT ALSO ALLEGED THAT THE STATE CREATED MALE ONLY LISTS FOR SOME CORRECTIONOFFICER POSITIONS UNDER THE SETTLEMENT THE STATE WILL DISTRIBUTE 65 MILLION IN BACK PAY TO BLACK AND FEMALE APPLICANTS AFFECTED BY THE ALLEGED DISCRIMINATORY PRACTICES AND PROVIDE PRIORITY OFFERS OF EMPLOYMENT TO ABOUT 450 PEOPLE NEW JERSEY ALSO AGREED TO USE ONLY TESTS AND OTHER SELECTION DEVICES THAT COMPLY WITH FEDERAL LAW AND ARE DEMONSTRABLY RELEVANT TO JOB PERFORMANCE THE JUSTICE DEPARTMENT SAID THE STATE ALSO CHANGED ITS GENDERRESTRICTED ASSIGNMENT POLICIES FOR CORRECTIONOFFICER JOBS MONEY ALSO WILL GO TOWARD RETROACTIVE PENSION BENEFITS TO CERTAIN AFFECTED INDIVIDUALS A SPOKESMAN FOR THE GOVERNOR COULDN'T BE REACHED FOR COMMENT 9402180139 940218 VIACOM FACES BLOCKBUSTER HOLDERS' ANGER PLANNED ACQUISITION'S VALUE SLUMPS BREEDS PROTEST TERMS MAY BE REVISED BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL FRESH FROM ITS VICTORY IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC CABLETELEVISION PROGRAMMER VIACOM INC MUST NOW QUELL SHAREHOLDER ANGER AT BLOCKBUSTER ENTERTAINMENT CORP OVER THE SLUMPING PRICE TAG OF VIACOM'S PLANNED ACQUISITION OF BLOCKBUSTER TAKEOVER STOCK TRADERS GENERALLY BELIEVE THE VIACOMBLOCKBUSTER MERGER WILL STILL TAKE PLACE POSSIBLY ON REVISED TERMS BECAUSE SHAREHOLDERS WHO CONTROL 23 OF BLOCKBUSTER STOCK INCLUDING THE VIDEOSTORE CHAIN'S CHAIRMAN WAYNE HUIZENGA HAVE AGREED TO VOTE FOR THE DEAL BUT MANY ANALYSTS AND SHAREHOLDERS ARE PROTESTING BECAUSE THE DEAL'S CURRENT VALUE OF ROUGHLY 5 BILLION OR 2270 A SHARE FOR BLOCKBUSTER HAS SUNK FAR BELOW BLOCKBUSTER'S 3350ASHARE PEAK STOCK PRICE IN NOVEMBER THAT HAS HAPPENED BECAUSE VIACOM PLANS TO ISSUE MILLIONS OF ADDITIONAL SHARES TO PAY FOR THE PARAMOUNT AND BLOCKBUSTER ACQUISITIONS AND PLANS TO ASSUME NEW DEBT TO BUY PARAMOUNT THERE IS A CHANCE THAT BLOCKBUSTER'S INSTITUTIONAL SHAREHOLDERS WILL VETO THE DEAL IN A SHAREHOLDER VOTE SCHEDULED FOR SOMETIME IN MAY SAID PAUL MARSH AN ANALYST AT NATWEST SECURITIES INC OVERTURNING THE DEAL WOULD REQUIRE A LANDSLIDE VOTE OF ROUGHLY 65 OF SHAREHOLDERS WHO HAVEN'T AGREED TO BACK THE DEAL SOME TRADERS BELIEVE THAT'S A STEEP HURDLE CONSIDERING THAT AN ORGANIZED SHAREHOLDER REVOLT IN 1992 OVER TERMS OF AN ACQUISITION OF CENTEL CORP BY SPRINT CORP FAILED TO CAPTURE A BARE MAJORITY HOWEVER OTHER ANALYSTS POINT OUT THAT BOTH CENTEL AND SPRINT MANAGEMENTS CAMPAIGNED FOR THAT DEAL WHEREAS SOME BLOCKBUSTER EXECUTIVES ARE SAID TO BE PRIVATELY FANNING THE FLAMES OF THEIR OWN SHAREHOLDER REVOLT IN AN INTERVIEW YESTERDAY BLOCKBUSTER'S MR HUIZENGA ACKNOWLEDGED SOME DISAPPOINTMENT OVER THE PERFORMANCE OF VIACOM'S STOCK BUT HE PREDICTED IT WOULD RECOVER BY THE TIME BLOCKBUSTER SHAREHOLDERS CAST THEIR VOTES IN THREE MONTHS ONCE EXECUTIVES OF VIACOM AND BLOCKBUSTER HAVE A CHANCE TO PROMOTE THE UNDERLYING VALUES OF THE COMPANIES AND HE DENIED ENCOURAGING ANY SHAREHOLDER DISSENT MR HUIZENGA SAID IT WOULD BE FOOLISH FOR HIM TO ASK VIACOM CHAIRMAN SUMNER REDSTONE TO IMPROVE THE TERMS OF THE DEAL HE WOULDN'T CONSIDER THAT BUT MR HUIZENGA SAID THAT IF VIACOM'S STOCK PRICE DIDN'T BOUNCE BACK THE BLOCKBUSTER BOARD MIGHT DECIDE NOT TO RECOMMEND THE DEAL TO SHAREHOLDERS WHEN IT'S TIME TO MAIL PROXY STATEMENTS DESCRIBING IT TWO MONTHS FROM NOW THE PRICE OF VIACOM CLASS B SHARES HAS FALLEN 34 SINCE THE BLOCKBUSTER MERGER WAS ANNOUNCED JAN 7 THE STOCK HAS BEEN WEAKER THAN EXPECTED THIS WEEK SINCE VIACOM WON THE PARAMOUNT BIDDING WAR YESTERDAY THE STOCK FELL 1 A SHARE TO 27 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE AS A RESULT OF VIACOM'S STOCK PRICE DROP BLOCKBUSTER SHARES HAVE ALSO FALLEN 16 SINCE JAN 7 IT CLOSED AT 23625 DOWN 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MR REDSTONE WILL BE STOPPING BY BLOCKBUSTER HEADQUARTERS IN FORT LAUDERDALE FLA TO MEET WITH MR HUIZENGA TODAY AND MR HUIZENGA SAID HE WAS CERTAIN THE SUBJECT WOULD COME UP JUST IN DISCUSSION THE BLOCKBUSTER DEAL IS IMPORTANT TO VIACOM'S ABILITY TO PAY THE INTEREST COSTS ASSOCIATED WITH THE 97 BILLION PARAMOUNT ACQUISITION BECAUSE BLOCKBUSTER HAS STRONG CURRENT CASH FLOW AND LITTLE DEBT BLOCKBUSTER'S STOCK IS TRADING SLIGHTLY ABOVE THE CURRENT VALUE THAT VIACOM HAS AGREED TO PAY BECAUSE TRADERS BELIEVE THERE IS A CHANCE THAT VIACOM MAY HAVE TO SWEETEN THE TERMS OF THE ACQUISITION OR EVEN THAT ANOTHER SUITOR MIGHT EMERGE TO MAKE A HIGHER BID GIVEN THE STEEP FALL IN THE ORIGINAL 30ASHARE VALUE OF VIACOM'S BID FOR BLOCKBUSTER STRIKING AN UNDERSTANDING TONE MR REDSTONE SAID EARLIER THIS WEEK THAT HE SYMPATHIZES WITH BLOCKBUSTER'S SHAREHOLDERS I UNDERSTAND IT HE SAID I OWN 92 MILLION SHARES OF VIACOM THAT ARE ALMOST HALF THE 55 THEY WERE WORTH BUT HE SAID THE WEAKNESS IN VIACOM'S STOCK IS A SHORTTERM PHENOMENON WE HAVE BEEN WILLING TO TAKE A SHORTTERM BEATING BECAUSE WE FEEL THE ULTIMATE REWARD WILL BE A BIG PAYOFF HE SAID WE ARE ALL EXCITED ABOUT THE POTENTIAL FOR EXAMPLE MR REDSTONE POINTED OUT THAT BLOCKBUSTER AND VIACOM'S SHOWTIME UNIT TOGETHER WILL BE ABLE TO SQUEEZE PRICE CONCESSIONS ON MOVIES AND HOMEVIDEO TAPES FROM HOLLYWOOD STUDIOS RESULTING IN BIG SAVINGS BETWEEN BLOCKBUSTER AND SHOWTIME WE WILL BE THE LARGEST CUSTOMER OF HOLLYWOOD HE SAID BEFORE THE PROXY MATERIALS ARE MAILED TO SHAREHOLDERS MERRILL LYNCH & CO BLOCKBUSTER'S INVESTMENT BANKER MUST RESTATE ITS OPINION THAT THE DEAL IS FAIR TO BLOCKBUSTER SHAREHOLDERS BUT THAT COULD PROVE TICKLISH FOR MERRILL AT CURRENT STOCK PRICES BECAUSE IT SERVED AS LEAD MANAGER OF AN OFFERING OF 147 MILLION BLOCKBUSTER SHARES LAST NOVEMBER AT A PRICE OF 30 EACH MR MARSH OF NATWEST BELIEVES BLOCKBUSTER'S DIRECTORS WOULD ALSO BE OBLIGED TO ADVISE SHAREHOLDERS TO REJECT THE PROPOSED DEAL AT CURRENT PRICE LEVELS WHEN THE BLOCKBUSTER BOARD AGREED TO THE MERGER VIACOM CLASS B SHARES WERE AT 42 HE SAID GIVEN THE PRECIPITOUS DECLINE OF THE CLASS B SHARES SINCE THEN IN MY OPINION IT WOULD BE THE BOARD'S FIDUCIARY DUTY TO RECOMMEND A VOTE OF NO ONE LARGE BLOCKBUSTER SHAREHOLDER WHO ASKED NOT TO BE NAMED SAID A SHAREHOLDER VETO IS A VERY REAL POSSIBILITY LAWRENCE HAVERTY AN ANALYST AT STATE STREET RESEARCH & MANAGEMENT INC WHICH OWNS 33 MILLION BLOCKBUSTER SHARES SAID WE'RE NOT VERY HAPPY AND WE'VE COMMUNICATED THAT TO MANAGEMENT BLOCKBUSTER'S MR HUIZENGA HAD THE RIGHT TO VETO ANY INCREASE IN THE VIACOM OFFER FOR PARAMOUNT UNDER TERMS OF THE VIACOMBLOCKBUSTER ACQUISITION BUT HE NEVER HAD A CHANCE TO EXERCISE THAT VETO BECAUSE HIS LAWYERS ADVISED HIM THAT THE LAST TWO INCREASES IN VIACOM'S BID FOR PARAMOUNT WEREN'T MATERIAL MEANING SIGNIFICANT ENOUGH TO TRIGGER THE VETO POWER THE TRADERS WHO BELIEVE THE BLOCKBUSTER DEAL WILL GO THROUGH SAY VIACOM'S STOCK MAY WELL STABILIZE OR REBOUND ONCE THE CHIEF EXECUTIVES OF VIACOM AND BLOCKBUSTER INTENSIFY THEIR PROMOTIONAL EFFORTS WHICH BEGAN WEDNESDAY WITH AN APPEARANCE BY MR REDSTONE AND FRANK BIONDI VIACOM CHIEF EXECUTIVE OFFICER ON NBCTV'S TODAY SHOW ALSO THESE TRADERS SAY SOME SHAREHOLDERS WHO OPPOSE THE DEAL NOW MAY SELL THEIR STOCK IN THE MEANTIME INDEED ONE MONEY MANAGER WHO OPPOSED THE DEAL ANDREW GRAVES OF FRIESS ASSOCIATES INC IN JACKSON HOLE WYO SAID HIS FIRM SOLD ITS 15 MILLION BLOCKBUSTER SHARES AFTER THE ANNOUNCEMENT AT THE SAME TIME SOME INVESTORS WHO BUY BLOCKBUSTER STOCK BETWEEN NOW AND MAY MAY DO SO BECAUSE THEY WANT THE DEAL TO GO THROUGH REDUCING THE POTENTIAL VOTES AGAINST THE DEAL 9402180138 940218 DIVIDEND NEWS DURACELL INTERNATIONAL INC DURACELL INTERNATIONAL INC INCREASED ITS QUARTERLY DIVIDEND 38 TO 22 CENTS A SHARE FROM 16 CENTS PAYABLE MARCH 17 TO SHARES OF RECORD MARCH 3 DURACELL'S INITIAL CASH DIVIDEND WAS DECLARED IN AUGUST 1992 AT EIGHT CENTS A SHARE AND DOUBLED TO 16 CENTS IN FEBRUARY 1993 DURACELL OF BETHEL CONN MAKES AND MARKETS ALKALINE BATTERIES 9402180137 940218 COURTAULDS TEXTILES DELAYS DEAL LONDON COURTAULDS TEXTILES PLC ANNOUNCED THAT ITS PROPOSED 45 MILLION 664 MILLION ACQUISITION OF HARTSTONE GROUP PLC'S HOSIERY AND SOCK BUSINESS HAS BEEN DELAYED BECAUSE OF DAMAGE AT ONE OF THE PLANTS THE BRITISH TEXTILE GROUP SAID THAT BAD WEATHER IN FRANCE HAD CAUSED DAMAGE TO ONE OF THE BUILDINGS AT A WAREHOUSE AND PACKAGING SITE AND THAT IT IS WAITING TO SEE HOW BADLY THE BUILDING HAS BEEN DAMAGED BEFORE COMPLETING THE PURCHASE 9402180136 940218 ONEX RECORDS GAIN ON STOCK SALE TORONTO ONEX CORP SAID IT RECORDED A GAIN OF ABOUT 39 MILLION CANADIAN DOLLARS US291 MILLION ON THE SALE OF MUCH OF ITS REMAINING STAKE IN JOHNSTOWN AMERICAN INDUSTRIES INC ONEX SOLD 1677101 SHARES OF JOHNSTOWN THROUGH THE MANUFACTURING CONCERN'S RECENT SECONDARY STOCK ISSUE WHICH WAS PRICED AT US2575 A SHARE FOR TOTAL PROCEEDS OF C54 MILLION IT CONTINUES TO HOLD ABOUT 375000 SHARES OF JOHNSTOWN FOR A 4 STAKE IN THE COMPANY ONEX IS A HOLDING COMPANY WITH INVESTMENTS IN AIRLINE CATERING AUTOMOTIVE PRODUCTS AND OTHER MANUFACTURING VENTURES 9402180135 940218 VOLVO RENAULT TO DISMANTLE ALLIANCE FOLLOWING COLLAPSE OF MERGER EFFORT BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL SWEDEN'S AB VOLVO AND FRENCH AUTO GIANT RENAULT SA AGREED TO DISMANTLE THEIR STRATEGIC ALLIANCE SEVERING TIES BETWEEN THE COMPANIES THAT HAD ONCE PLANNED TO MERGE AND LEAVING EACH OF THEM FREE TO SEARCH FOR NEW PARTNERS THE VOLVORENAULT DIVORCE WHICH WILL TAKE A SURPRISINGLY BIG BITE OUT OF VOLVO'S PROFIT THIS YEAR HAD BEEN EXPECTED SINCE REBELLIOUS VOLVO SHAREHOLDERS SHOT DOWN THE PROPOSED MERGER OF THE SWEDISH COMPANY'S CAR AND TRUCK DIVISIONS WITH RENAULT LATE LAST YEAR THE MARRIAGE WAS WIDELY VIEWED AS THE CULMINATION OF A FOURYEAR BETROTHAL WHICH HAD BEEN CEMENTED BY CROSS SHAREHOLDINGS IN EACH OTHER'S VEHICLE BUSINESSES THE MERGER PLAN HAD REFLECTED VOLVO'S BELIEF THAT THE SWEDISH COMPANY IS TOO SMALL TO ABSORB NEWCAR DEVELOPMENT COSTS AND SURVIVE AS AN INDEPENDENT AUTO MAKER BUT NOW RATHER THAN A FULLSCALE MARRIAGE WITH A SINGLE PARTNER VOLVO IS LIKELY TO PURSUE MORE COOPERATIVE EFFORTS LIKE ITS JOINT VENTURE WITH JAPAN'S MITSUBISHI MOTORS CORP TO BUILD MIDSIZE MODELS AT A PLANT IN THE NETHERLANDS INDUSTRY ANALYSTS SAY OFFICIALS AT VOLVO HAVE SAID THEY WANT TO CONCENTRATE ON THE COMPANY'S CORE CAR AND TRUCK OPERATIONS AND SELL PARTS OF ITS SPRAWLING PORTFOLIO OF STAKES IN OTHER SWEDISH COMPANIES IMMEDIATELY AFTER THE COLLAPSE OF THE MERGER PLAN VOLVO AND RENAULT PLEDGED TO CONTINUE THE ALLIANCE UNDER ITS ORIGINAL FORM BUT THAT COMMITMENT FADED BECAUSE OF THE MASS RESIGNATION OF VOLVO'S PREVIOUS BOARD AND ITS REPLACEMENT BY NEWCOMERS LUKEWARM TO RENAULT AND ANXIOUS TO PRESERVE VOLVO'S INDEPENDENCE DISSOLUTION OF KEY PURCHASING AND QUALITYCONTROL JOINT VENTURES IN RECENT WEEKS PLUS RENAULT'S SALE THIS MONTH OF PART OF ITS 10 VOTING STAKE IN VOLVO SUGGESTED THE FINAL SEPARATION WAS JUST A MATTER OF TIME THE ALLIANCE WILL BE DISMANTLED IN TWO STEPS THE FIRST PHASE WILL BE A STRAIGHT SHARE SWAP RENAULT'S 25 STAKE IN VOLVO'S CAR DIVISION FOR VOLVO'S 45 STAKE IN RENAULT'S TRUCK DIVISION RENAULT VEHICULES INDUSTRIELS SA DETAILS OF THE SECOND AND FINAL STEP HINGE ON THE FRENCH GOVERNMENT'S INTENTION TO PRIVATIZE STATEOWNED RENAULT BY THE END OF THIS YEAR IF THE PRIVATIZATION PROCEEDS ON SCHEDULE VOLVO WILL EXCHANGE 12 OF THE PARENT RENAULT OUT OF THE 20 VOLVO CURRENTLY HOLDS FOR RENAULT'S 45 HOLDING IN VOLVO'S TRUCK DIVISION BUT IF THE PRIVATIZATION ISN'T COMPLETED BY NOV 30 VOLVO WOULD RECEIVE AN 18MONTH OPTION TO BUY BACK THE 45 TRUCKDIVISION STAKE FOR A FIXED PRICE OF 45 BILLION FRANCS 7669 MILLION THE DIVORCE PLAN REMAINS SUBJECT TO APPROVAL BY VOLVO'S BOARD RELEVANT CORPORATE ENTITIES AT RENAULT AND THE FRENCH GOVERNMENT BUT REPRESENTATIVES OF EACH COMPANY ON THE BOARDS OF THE OTHER'S CAR AND TRUCK DIVISIONS WILL RESIGN IMMEDIATELY VOLVO SAID VOLVO HAS MADE COMBINED NET CASH PAYMENTS OF 78 BILLION KRONOR 9719 MILLION TO RENAULT UNDER THE ALLIANCE PACT INCLUDING AN ADDITIONAL ONE BILLION FRANCS DUE RENAULT THIS YEAR AS AN ADJUSTMENT OF CARDIVISION PROFITS SINCE 1989 AFTER THE DIVORCE VOLVO WILL BE LEFT WITH AN 8 STAKE IN RENAULT THAT CAN BE SOLD FOLLOWING PRIVATIZATION THE VALUE OF THAT STAKE REMAINS UNCERTAIN BUT VOLVO CHIEF FINANCIAL OFFICER JAN ENGSTROEM PLAYED DOWN CHANCES THAT VOLVO WILL FULLY COVER ITS 78 BILLION KRONOR NET OUTLAY SO FAR MOREOVER VOLVO WILL INCUR VARIOUS GOODWILL CHARGES AS A RESULT OF UNWINDING THE ALLIANCE ONE CHARGE OF 36 BILLION KRONOR RELATING TO THE RENAULT HOLDING WILL BE WRITTEN OFF AGAINST THIS YEAR'S PROFIT MR ENGSTROEM EXPLAINED IN A PHONE INTERVIEW THE SWEDISH COMPANY WILL WRITE OFF A FURTHER 16 BILLION KRONOR REFLECTING SURPLUS VALUE OF THE 45 OF THE VOLVO TRUCK DIVISION COMPARED WITH THE 12 RENAULT STAKE CEDED BY VOLVO IN EXCHANGE DESPITE THE THREAT OF A 52 BILLION KRONOR HIT TO 1994 PRETAX PROFIT INVESTORS APPEARED SATISFIED WITH THE SEPARATION VOLVO'S BENCHMARK CLASS B STOCK SURGED 15 KRONOR 187 OR 22 TO 692 KRONOR IN HEAVY TRADING ON THE STOCKHOLM STOCK EXCHANGE VOLVO WHICH BUILT ITS REPUTATION ON BOXY CARS KNOWN FOR SAFETY HASN'T YET REPORTED FOURTHQUARTER AND FULLYEAR RESULTS FOR 1993 IN THE FIRST HALF OF LAST YEAR THE COMPANY REBOUNDED FROM YEARS OF LOSSES TO REPORT A PROFIT OF 380 MILLION KRONOR ANALYSTS EXPECT THE TURNAROUND TO PICK UP SPEED THIS YEAR THE DISMANTLING OF TIES WITH RENAULT WILL HAVE LITTLE EFFECT ON THE US CAR MARKET WHERE VOLVO IS A SMALL PLAYER AND RENAULT NO LONGER HAS A PRESENCE RENAULT WHICH HAS REBOUNDED FROM HUGE LOSSES IN THE 1980S IS ONE OF THE FEW EUROPEAN AUTO MAKERS TO REMAIN PROFITABLE DURING THE RECESSION THERE BUT ITS BIGTRUCK DIVISION WHICH INCLUDES MACK TRUCK OF THE US IS WEAK AND MANAGEMENT HAD HOPED TO SHORE UP THE AILING UNIT BY JOINING FORCES WITH VOLVO AND CREATING ONE OF THE WORLD'S BIGGEST HEAVYTRUCK MAKERS MR ENGSTROEM EMPHASIZED THAT VOLVO HAD DONE ITS BEST TO SEVER TIES WITH RENAULT IN A FASHION THAT WOULDN'T JEOPARDIZE PRIVATIZATION PLANS AND WHILE VOLVO EXECUTIVES HAVE NO MORE OF A COMMITMENT THAN BEFORE FROM FRENCH AUTHORITIES ABOUT EXACT TIMING OF RENAULT'S PRIVATIZATION WE HAVE GOOD REASON TO BELIEVE THAT IT WILL TAKE PLACE BEFORE THE NOV 30 DEADLINE STIPULATED IN THE DIVORCE PACT HE ADDED AGAINST THE BACKGROUND OF THE MERGER'S COLLAPSE BOTH SIDES WANTED FREEDOM TO TAKE CARE OF THEIR OWN BUSINESSES AND DECIDE WHETHER TO CONTINUE WITH VARIOUS PROJECTS OR NOT COOPERATE AT ALL ON A CASEBYCASE BASIS THE VOLVO EXECUTIVE EXPLAINED WE'RE HAPPY TO GET THIS RESOLVED 9402180134 940218 DIVIDEND NEWS ROTHMANS INC ROTHMANS INC SAID IN TORONTO THAT IT PLANS TO DISTRIBUTE 1045 MILLION CANADIAN DOLLARS US776 MILLION TO ITS SHAREHOLDERS IN THE FORM OF A SPECIAL DIVIDEND THE TOBACCO AND CIGARETTE MANUFACTURING CONCERN DECLARED A SPECIAL DIVIDEND OF C18 US1343 PAYABLE MARCH 17 TO SHARES OF RECORD MARCH 3 IN ADDITION TO ITS USUAL QUARTERLY DIVIDEND OF C1 A SHARE THE COMPANY SAID IT OPTED TO PAY SURPLUS FUNDS TO SHAREHOLDERS AS IT HAS NO PLANS TO DIVERSIFY BEYOND THE TOBACCO BUSINESS BEFORE THE ANNOUNCEMENT OF THE DIVIDEND ROTHMANS STOCK CHANGED HANDS AT C96 A SHARE ON THE TORONTO STOCK EXCHANGE IT DIDN'T RESUME TRADING 9402180133 940218 ENTERPRISE SMALLBUSINESS SURVIVAL RATE EXPECTED TO RISE IN 1994 FAILURES FELL TO THREEYEAR LOW IN DECEMBER DUN & BRADSTREET REPORTS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESS FAILURES FELL TO A THREEYEAR LOW IN DECEMBER REINFORCING A YEARLONG TREND THAT IS EXPECTED TO CONTINUE IN 1994 DUN & BRADSTREET CORP REPORTED THE IMPROVING SURVIVAL RATE OF SMALL BUSINESS IS GOOD NEWS FOR THE ECONOMY WHICH SOME AUTHORITIES SAY WILL RELY HEAVILY ON SUCH FIRMS TO CREATE JOBS IT IS EVEN BETTER NEWS FOR BUSINESS OWNERS WHO DURING THE RECESSION AND ENSUING WEAK RECOVERY FEARED FOR THEIR BUSINESSES' LIVES ONLY 5784 BUSINESSES FAILED IN DECEMBER A 16 DROP FROM A YEAR EARLIER AND THE LOWEST MONTHLY TOTAL SINCE DECEMBER 1990 ACCORDING TO DUN & BRADSTREET THE BUSINESSINFORMATION CONCERN SAYS 85983 FIRMS FAILED IN 1993 AN 11 DECLINE FROM 1992 THE IMPROVEMENT WAS EVEN STARKER BY ANOTHER MEASURE THE VALUE OF LIABILITIES RELATED TO FAILURES IN DECEMBER FELL 70 FROM A YEAR EARLIER TO 255 BILLION AND DECLINED 49 IN 1993 COMPARED WITH 1992 TO 454 BILLION DUN & BRADSTREET SAID EVERY ONE OF THE COMPANIES I'M DEALING WITH IS EXPERIENCING REVENUE GROWTH SAYS KEVIN BUSCH PRESIDENT OF INFINITY DELTA GROUP A BUFFALO GROVE ILL FIRM THAT PROVIDES INTERIMMANAGEMENT SERVICES TO TROUBLED SMALL COMPANIES THERE'S STILL SOME TIGHTNESS IN PROFIT MARGINS FROM PRICING PRESSURE BUT THEY'RE ALL OPTIMISTIC ABOUT 1994 CONSIDER AUTO MAINTENANCE MEN AN AUTOREPAIR SHOP IN SAN ANTONIO TEXAS A YEAR AGO THE COMPANY WAS NEARLY A GONER SAYS OWNER MARVIN BAKER IT WAS LOSING SO MUCH MONEY THAT HE HAD TO LAY OFF TWO OF HIS SEVEN EMPLOYEES AND BORROW 12000 WITH PERSONAL CREDIT CARDS HE SAYS BUT SALES IMPROVED STEADILY IN 1993 MR BAKER SAYS PARTLY BECAUSE OF INCREASED ORDERS FROM LARGE COMMERCIAL ACCOUNTS SUCH AS A LOCAL USEDCAR DEALERSHIP A MOVE TO A MORE VISIBLE LOCATION AND A NEW DIRECTMAIL MARKETING EFFORT ALSO HELPED MR BAKER SAYS SALES FOR ALL OF 1993 ROSE 25 TO 250000 AND THE COMPANY IN JANUARY MADE A SMALL PROFIT HE SAYS I'M OPTIMISTIC ABOUT MY BUSINESS MR BAKER SAYS NOTING THAT HE HOPES TO PAY OFF HIS DEBTS BY THIS SUMMER AND INVEST 10000 IN NEW EQUIPMENT UNLIKE THE SPUTTERING MINIRECOVERIES OF RECENT YEARS THIS ECONOMIC UPTURN HAS STAYING POWER DUN & BRADSTREET'S CHIEF ECONOMIST JOSEPH DUNCAN SAYS THE CURRENT STRENGTH OF THE ECONOMY SHOULD REINFORCE THIS TREND IN 1994 MR DUNCAN SAYS WHAT'S MOST IMPRESSIVE ABOUT THE YEAREND FIGURES IS THE IMPROVEMENT WE ARE SEEING FROM REGIONS AND INDUSTRY SECTORS THAT HAVE BEEN STRUGGLING IN THE PAST FOR INSTANCE WHILE THE RETAIL AND SERVICES SECTORS HAVE TAKEN THE TOUGHEST HITS OVER THE PAST YEAR BOTH REPORTED FEWER FAILURES IN 1993 AS A RESULT OF STRENGTHENING IN THE FOURTH QUARTER MR DUNCAN SAYS RETAIL AND SERVICESECTOR FAILURES DECLINED 18 TO 2282 AND 94 TO 24311 RESPECTIVELY ACCORDING TO DUN & BRADSTREET THE SITUATION IMPROVED IN EVERY GEOGRAPHIC REGION INCLUDING SUCH SEVERELY DEPRESSED AREAS AS NEW ENGLAND AND THE PACIFIC STATES MR DUNCAN SAYS FAILURES IN NEW ENGLAND DROPPED 14 TO 5330 WHILE THE PACIFIC STATES REPORTED A MODEST 14 DECLINE IN CALIFORNIA FAILURES FELL ONLY 05 TO 19695 WHILE RISING DEMAND AND MORE FAVORABLE LENDING CONDITIONS ACCOUNT FOR SOME OF THE DECLINE IN BUSINESS CASUALTIES SPECIALISTS SAY BUSINESS OWNERS WHO WEATHERED THE SLUMP HAVE EMERGED AS MORE ASTUTE MANAGERS YOU'VE GOT SOME REAL SURVIVORS HERE SAYS DAN SAUTNER CHAIRMAN OF PADGETT BUSINESS SERVICES USA INC AN ATHENS GA FRANCHISER OF ACCOUNTING AND TAX SERVICES FOR SMALL BUSINESSES AT WINDOW BOX INC A CHESHIRE CONN FLORIST OWNER SYLVIA NICHOLS SAYS 1993 SALES GREW 20 TO 400000 WHILE SALES SO FAR THIS YEAR ARE UP 30 OVER THE COMPARABLE PERIOD IN 1993 MS NICHOLS SAYS LAST YEAR'S GAIN OFFSET A 20 SALES DECLINE IN 1992 WHEN SHE WAS FORCED TO RENEGOTIATE HER LEASE AND REDUCE BY 10 THE HOURS OF HER EIGHT EMPLOYEES MS NICHOLS SAYS HER CUSTOMERS ARE SPENDING AN AVERAGE OF 10 MORE WITH EACH PURCHASE AT THE SAME TIME AS A RESULT OF THE MEASURES WINDOW BOX TOOK TO WEATHER THE RECESSION WE'VE BECOME BETTER BUSINESS PEOPLE SHE SAYS THE COMPANY LAST FALL BEGAN A DIRECTMAIL MARKETING EFFORT TO IMPROVE CUSTOMER SERVICE SHE SAYS EACH EMPLOYEE ALSO NOW SPENDS A DAY A WEEK CALLING PERSONALLY ON EXISTING AND PROSPECTIVE CLIENTS MS NICHOLS SAYS SHE'S OPTIMISTIC ABOUT 1994 WE EXPECT TO CONTINUE GROWING AT LEAST AT THIS LEVEL FOR THE REST OF THE YEAR SHE SAYS ROBERT SOMMERS OWNER OF TOSLO PRINTING IN PORTLAND ORE SAYS HE TOO IS NOW BETTER PREPARED TO SURVIVE THE NEXT BUSINESS SLUMP IN 1989 AT THE SAME TIME THAT TOSLO WAS MOVING TO A LARGER LOCATION IT LOST A CUSTOMER THAT ACCOUNTED FOR A THIRD OF HIS COMMERCIALPRINTING COMPANY'S SALES MR SOMMERS SAYS TO COPE HE HAD TO BORROW 300000 FROM HIS MOTHER TOSLO'S 1993 SALES GREW 25 TO 380000 AND IN JANUARY INCREASED ANOTHER 15 OVER YEAREARLIER LEVELS MR SOMMERS SAYS BUT THIS TIME AROUND HE SAYS HE ISN'T RELYING SO HEAVILY ON ANY SINGLE CUSTOMER HIS LARGEST ACCOUNT CURRENTLY MAKES UP ONLY 15 OF TOSLO'S TOTAL SALES THE IMPROVED BUSINESS ACUMEN OF MR SOMMERS AND HIS PEERS BODES WELL FOR THEIR FIRMS' SURVIVAL AND PRESUMABLY JOB CREATION THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS REPORTED THIS WEEK THAT 19 OF ITS MEMBERS EXPECTED TO INCREASE EMPLOYMENT IN THE NEXT SIX MONTHS A THREEPERCENTAGEPOINT IMPROVEMENT OVER A YEAR AGO AND THE MOSTBULLISH FIRSTQUARTER HIRING FORECAST SINCE 1990 PARADOXICALLY SMALLBUSINESS OWNERS' SHARPENED BUSINESS SKILLS COULD ACT AS A SLIGHT DRAG ON THE ECONOMY SPECIALISTS SAY TO CONSERVE CAPITAL AND INCREASE PRODUCTIVITY MANY OF THEM ARE PUTTING OFF HIRING TOSLO PRINTING WHICH EMPLOYS SIX IS FOCUSING ON BROKERING PRINTING JOBS RATHER THAN DOING THE WORK ITSELF TO HOLD DOWN LABOR COSTS MR SOMMERS SAYS AT WINDOW BOX MS NICHOLS SAYS HER HIRING PLANS ARE LIMITED TO CONVERTING SOME PARTTIME WORKERS TO FULLTIME EMPLOYEES AT AUTO MAINTENANCE MEN MR BAKER SAYS HE TOO HAS NO PLAN TO REPLACE THE TWO WORKERS HE LAID OFF IN EARLY 1993 TO ACCOMMODATE RECENT SALES GROWTH HE SAYS WE'RE WORKING LONGER AND HARDER I LEFT HERE LAST NIGHT AT 8 O'CLOCK 9402180132 940218 FINANCING BUSINESS PHOENIX RESOURCE COS PHOENIX RESOURCE COS HOUSTON SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 12 MILLION COMMON SHARES BY ITS LARGEST HOLDER GOLDMAN SACHS & CO THE OIL AND NATURALGAS EXPLORATION COMPANY SAID THE SALE OF GOLDMAN'S 27 STAKE WILL BE MANAGED BY SALOMON BROTHERS INC 9402180131 940218 SMALL STOCK FOCUS TUMBLING BOND PRICES FOIL TWO RALLIES IN A BUSY AND VOLATILE TRADING SESSION BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PLUNGING BOND PRICES FOILED TWO SMALLCOMPANY STOCK RALLY ATTEMPTS IN A HEAVY AND VOLATILE TRADING SESSION BONDS SOLD OFF AND WE SAW SOME SMALL SELL PROGRAMS SAID ROBERT PADALA SENIOR VICE PRESIDENT OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE WE'VE BEEN ACTING WELL ALL WEEK SO PROFITTAKING IS NOT UNEXPECTED THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES BROKE A THREESESSION WINNING STREAK TO FALL 108 OR 041 TO 26488 BUT ABOVE ITS SESSION LOW OF 26468 NASDAQ STOCKS MOVED HIGHER AT THE OPENING BUT SANK SHORTLY AFTER 10 AM EST AND THEN DROPPED EVEN MORE SHARPLY IN MIDAFTERNOON THE NASDAQ COMPOSITE INDEX LOST 238 OR 030 TO 79024 AFTER SWINGING IN A SEVENPOINT RANGE DECLINERS WHIPPED NASDAQ ADVANCERS 1695 TO 1495 ALTHOUGH GAINERS HAD STAYED IN FRONT OF LOSERS THROUGH MIDDAY NASDAQ NATIONAL MARKET CLIMBED TO 295999000 SHARES FROM 279170700 WEDNESDAY TOTAL VOLUME WAS AT 354025800 SHARES UP FROM 338501300 WEDNESDAY A PHILADELPHIA FEDERAL RESERVE SURVEY THAT SHOWED CONTINUING STRENGTH IN THE AREA'S MANUFACTURING SECTOR PUSHED INTEREST RATES HIGHER AFTER AN INITIAL RALLY ON BULLISH INFLATION DATA THE TREASURY'S 30YEAR BOND WENT INTO A DEEP SLIDE FINISHING MORE THAN A POINT LOWER WITH ITS YIELD JUMPING TO 654 MARTIN MARIETTA MATERIALS A NEW ISSUE CLIMBED TO 24 5/8 ON THE NEW YORK STOCK EXCHANGE FROM ITS OFFERING PRICE OF 23 LATE WEDNESDAY THE RALEIGH NC PRODUCER OF CONSTRUCTION MATERIALS SAID PROCEEDS WILL BE USED TO REPAY DEBT TO PARENT MARTIN MARIETTA CORP WHICH WILL HOLD 83 OF THE COMPANY AFTER THE SPINOFF BACK BAY RESTAURANT GROUP BOSTON ROSE 1 3/4 TO 19 1/4 AFTER IT SAID FOURTHQUARTER NET INCOME FROM CONTINUING OPERATIONS ROSE TO 32 CENTS A SHARE FROM EARNINGS OF 24 CENTS A YEAR EARLIER VALASSIS COMMUNICATIONS WAS A STANDOUT GAINER ON THE BIG BOARD SURGING 5 3/4 TO 17 1/2 THE EXCHANGE SAID IT CONTACTED THE COMPANY REGARDING HEAVY STOCK ACTIVITY BUT VALASSIS BASED IN LIVONIA MICH DECLINED TO COMMENT EARLIER YESTERDAY SULLIVAN MARKETING SAID IT IS GETTING OUT OF THE FREESTANDING INSERTS BUSINESS IN WHICH IT COMPETES WITH VALASSIS INMAC GAINED 1 3/8 TO 9 3/8 THE SANTA CLARA CALIF DIRECTRESPONSE MARKETER OF DATA COMMUNICATIONS PRODUCTS SAID IT EARNED 718000 IN THE FISCAL SECONDQUARTER COMPARED WITH A YEAREARLIER LOSS OF 177 MILLION THAT INCLUDED A CHARGE OF 149 MILLION GROUNDWATER TECHNOLOGY JUMPED 2 TO 14 3/4 THE NORWOOD MASS PROVIDER OF GROUNDWATER CLEANUP AND RESTORATION SERVICES SAID FISCAL THIRDQUARTER EARNINGS CAME IN AT 19 CENTS A SHARE TOPPING ANALYSTS' EXPECTATIONS OF 10 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY HAD NET INCOME FROM CONTINUING OPERATIONS OF 24 CENTS A SHARE NEWS LATE WEDNESDAY THAT THE STORAGE SYSTEMS DIVISION OF INTERNATIONAL BUSINESS MACHINES WON'T CONTINUE TO FUND THE PORTING OF NEW FEATURES TO ITS AIXBASED RS7051 FILE SERVER BY AUSPEX SYSTEMS TOOK THE SMALLER COMPANY'S SHARES DOWN 1 5/8 TO 6 7/8 FIGGIE INTERNATIONAL DROPPED 1 7/8 TO 10 7/8 AFTER ANNOUNCING IT WILL SUSPEND ITS QUARTERLY DIVIDEND HAS ENTERED INTO A NEW FINANCING RELATIONSHIP WITH CIT GROUP AND HAS NAMED A NEW VICE CHAIRMAN AS PART OF A PLANNED REORGANIZATION THE WILLOUGHBY OHIO COMPANY SAID IT EXPECTS SUBSTANTIAL 1993 OPERATING LOSSES AND SUBSTANTIAL YEAREND ADJUSTMENTS A SLIDE OF MORE THAN 5 IN ISRAEL'S STOCK MARKET HURT ISRAELI ISSUES TRADED IN THE US PEC ISRAEL ECONOMIC A CLOSEDEND FUND FELL 2 1/2 TO 31 AND TADIRAN A TELECOMMUNICATIONS FIRM LOST 1 3/8 TO 21 1/8 BOTH ON THE BIG BOARD TRADERS SAID INVESTORS WENT ON AN EARLY BUYING SPREE IMPRESSED BY FRESH ECONOMIC DATA AND AN EARLY POSITIVE REACTION FROM THE GOVERNMENT SECURITIES MARKET CONSUMER PRICES IN JANUARY WERE UNCHANGED AND THE GOVERNMENT SAID THE US MERCHANDISE TRADE DEFICIT FOR DECEMBER NARROWED BY A SHARP 23 BUT THE PHILADELPHIA FED SURVEY REVIVED INFLATION CONCERNS OBSERVERS SAID VOLATILITY AHEAD OF TODAY'S DOUBLE WITCHING SESSION WAS ALSO CITED AS A REASON BEHIND YESTERDAY'S CHOPPINESS OPTIONS ON INDIVIDUAL STOCKS AND SOME STOCK INDEXES ARE DUE TO EXPIRE JOHN WOSCZYNA A MARKET STRATEGIST AT RONEY & CO SAID THAT BY MONTH'S END A MARKET ROTATION AWAY FROM ECONOMICALLY SENSITIVE STOCKS MIGHT BEGIN TO OCCUR CYCLICALS ARE STILL THE PLACE TO BE MR WOSCZYNA SAID BUT BY NEXT MONTH A LOT OF THOSE ISSUES WILL BE COMPLETING SHORTTERM TOPS AND THE RELATIVE UNDERPERFORMANCE OF OTHER GROUPS WILL MAKE FOR A MORE EVEN DISTRIBUTION OF STRENGTH IN THE MARKET SMALLCAP STOCKS MR WOSCZYNA POINTED OUT HAVEN'T DONE AS WELL AS LARGER ISSUES THIS MONTH AND ARE RELATIVELY UNDERVALUED SINCE FEB 4 WHEN THE MARKET TUMBLED AFTER THE FED SAID IT WOULD RAISE SHORTTERM RATES THE RUSSELL HAS GAINED 321 OR 123 BUT THE DOW JONES INDUSTRIAL AVERAGE HAS CLIMBED 5122 OR 132 9402180130 940218 NASD DISCLOSES DISCIPLINARY PENALTIES FINES NUMBER OF INDIVIDUALS FIRMS NAMED FOR VIOLATING RULES SECURITIES LAWS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATIONS OF ITS RULES AND SECURITIES LAWS POWELL & SATTERFIELD INC LITTLE ROCK ARK WAS EXPELLED AND PRINCIPAL SCOTT A WELCH WAS FINED 50000 AND BARRED THEY DIDN'T ADMIT OR DENY OPERATING A SECURITIES BUSINESS WITH NET CAPITAL BELOW THE REQUIRED MINIMUM AMONG OTHER VIOLATIONS PRINCETON AMERICAN EQUITIES CORP PHOENIX AND PRINCIPAL ROBERT E HOLBERT WERE FINED 22500 JOINTLY AND SEVERALLY AND THE FIRM AND PRINCIPAL CARY W DEPRIEST WERE FINED 7500 JOINTLY AND SEVERALLY THE FIRM WAS SUSPENDED FOR 20 DAYS AND THE TWO MEN EACH SUSPENDED FOR 15 BUSINESS DAYS THE CHARGES INVOLVED NET CAPITAL AND BOOKKEEPING VIOLATIONS AS WELL AS THE SALE OF SECURITIES ON A PRINCIPAL BASIS WITHOUT A CURRENT REGISTRATION STATEMENT IN EFFECT COMMENTING ON THE PROCEEDING DALE EYMAN CHAIRMAN OF PRINCETON AMERICAN CORP PARENT OF PRINCETON AMERICAN EQUITIES SAID A GREAT DEAL OF THAT WAS BECAUSE OF AN ILLNESS OF AN EMPLOYEE BUT I CAN'T DISCLOSE THE NAME OF THE EMPLOYEE AAM SECURITIES INC ST LOUIS PARK MINN AND PRINCIPAL MICHAEL GERARDY AWES WERE FINED 13000 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY MADE UNSUITABLE INVESTMENT RECOMMENDATIONS TO CUSTOMERS MR AWES WAS SUSPENDED IN A PRINCIPAL CAPACITY FOR 10 BUSINESS DAYS COLONIAL SECURITIES INC NEW YORK AND PRINCIPAL YEE YEE WONG FLUSHING NY WERE FINED 20000 JOINTLY AND SEVERALLY AND MR WONG SUSPENDED FOR 10 BUSINESS DAYS THEY DIDN'T ADMIT OR DENY THAT THEY ALLOWED AN INDIVIDUAL TO ACT AS A BROKER WITHOUT BEING PROPERLY QUALIFIED MR WONG SAID THE PROBLEM INVOLVED A BOOKKEEPER'S MISTAKE ADDING THAT HE CONSENTED TO THE SANCTIONS BECAUSE OF LEGAL COSTS UNLESS OTHERWISE NOTED NONE OF THE FIRMS AND INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT CONSOLIDATED INVESTMENT SERVICES INC LITTLETON COLO AND PRINCIPALS JAMES FAINTER BELLEVUE WASH AND NORMAN ROUNDS LITTLETON COLO WERE FINED 15000 JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE ENTIRE AMOUNT ON FINDINGS THAT THE FIRM FAILED TO ADEQUATELY SUPERVISE A BROKER MR ROUNDS SAID THE DECISION DOESN'T REFLECT THE FACT THAT THE BROKER FAILED TO DISCLOSE OUTSIDE SALES ACTIVITIES TO HIS FIRM ACCORDING TO THE COMPANY'S LEGAL COUNSEL MASTERS FINANCIAL GROUP INC LITTLE ROCK ARK WAS THE SUBJECT OF TWO SEPARATE PROCEEDINGS MASTERS AND PRINCIPAL HALE RAY SPIEGELBERG ATLANTA WERE FINED 35000 JOINTLY AND SEVERALLY AND THE FIRM WAS REQUIRED TO PAY 12131 IN RESTITUTION TO PUBLIC CUSTOMERS MR SPIEGELBERG WAS SUSPENDED IN ANY PRINCIPAL CAPACITY FOR FIVE YEARS AND REQUIRED TO PAY 129166 IN RESTITUTION THEY DIDN'T ADMIT OR DENY FINDINGS OF SELLING SECURITIES AT UNFAIR PRICES AND ACTING AS AN UNDERWRITER FOR UNREGISTERED SHARES AS WELL AS RECORDKEEPING AND OTHER VIOLATIONS IN THE SECOND PROCEEDING MASTERS PRINCIPAL RICHARD E TORRES AND PRINCIPAL GANDY L BAUGH AND MR SPIEGELBERG WERE FINED 15000 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY CONDUCTED A SECURITIES BUSINESS WHILE FAILING TO MAINTAIN REQUIRED MINIMUM NET CAPITAL AND THAT MR SPIEGELBERG FUNCTIONED AS A CONTROLLING PERSON WITHOUT PROPERLY REGISTERING BEY SECURITIES CORP ATLANTA AND PRINCIPAL GEORGE BEYLOUNI JR WERE FINED 10000 JOINTLY AND SEVERALLY FOR NET CAPITAL VIOLATIONS MR BEYLOUNI SAID HE IS IN THE PROCESS OF PAYING OFF THE FINE AND CALLED THE PENALTY VERY VERY HARSH RELATIVE TO THE LITTLE AMOUNT OF BUSINESS WE DID DONALD C ALAIMO MOUNT LAUREL NJ WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES MATTHEW R ARNOTT II MOBILE ALA FINED 6000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOSEPH S BABA CARY ILL FINED 20000 SUSPENDED IN ANY CAPACITY FOR 45 DAYS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR TWO YEARS HE DIDN'T ADMIT OR DENY ALLEGATIONS JOSEPH K BARBARA YARDLEY PENN FINED 20000 AND BARRED ALAN G BINGAMAN SEABROOK MD FINED 70000 BARRED AND ORDERED TO PAY RESTITUTION TO CUSTOMERS HE DIDN'T ADMIT OR DENY ALLEGATIONS WILLIAM JACKSON BLALOCK ATLANTA WAS FINED 50000 BARRED AND REQUIRED TO PAY JOINTLY AND SEVERALLY WITH A MEMBER FIRM 118300 IN RESTITUTION PRINCIPALS CHARLES LEE BRADLEY DULUTH GA AND JOHN WILSON RINGO MARIETTA GA WERE EACH FINED 10000 THE NASD SAID A MEMBER FIRM ACTING THROUGH MR RINGO CONDUCTED A SECURITIES BUSINESS WITHOUT SUFFICIENT NET CAPITAL AND FAILED TO MAKE A RECORD OF CUSTOMER FUNDS RECEIVED AND FORWARDED THE NASD SAID THE FIRM THROUGH MR BLALOCK AND MR BRADLEY SOLD SHARES AT UNFAIR PRICES AND THAT THE FIRM ACTING THROUGH THE THREE MEN PERMITTED MR BLALOCK TO FUNCTION AS PRESIDENT AND SALES REPRESENTATIVE OF THE FIRM WITHOUT PROPER NASD REGISTRATION AMONG OTHER VIOLATIONS THE THREE MEN HAVE APPEALED THE ACTION TO THE SECURITIES AND EXCHANGE COMMISSION AND IT ISN'T IN EFFECT PENDING CONSIDERATION OF THE APPEAL ROBERT L BOOTES LOUISVILLE KY WAS FINED 40000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MR BOOTES SAID THE RULES HE IS ACCUSED OF VIOLATING ARE VAGUE AND THAT AFTER FIGHTING THE NASD OVER THE MATTER FOR TWO YEARS HE DECIDED IT WASN'T WORTH FIGHTING ANYMORE JOHN WILLIAM BROSEMER WINTER SPRINGS FLA WAS FINED 50000 AND BARRED JOHN JOSEPH CAPANO NEW YORK WAS FINED 30000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GEORGE F CERWIN III PALM HARBOR FLA WAS FINED 10000 AND SUSPENDED FOR 60 DAYS AND DARRYLL W RATHBURN PALM HABOR FLA WAS FINED 7500 AND SUSPENDED FOR 60 DAYS THEY WERE REQUIRED TO JOINTLY AND SEVERALLY PAY 34000 IN RESTITUTION TO PUBLIC CUSTOMERS THEY DIDN'T ADMIT OR DENY FINDINGS JOHN LYLE CLEMENTS NOVI MICH WAS FINED 7500 AND SUSPENDED FOR 15 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS DENNIS MICHAEL DEPPING SPRINGFIELD MO WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MARK ROSS ELSTON SHAWNEE KAN WAS FINED 10000 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS EDWARD C FARNI II EXCELSIOR MINN AND WILLIAM S WRIGHT JR BLOOMINGTON MINN WERE EACH FINED 10000 AND SUSPENDED FOR 30 DAYS MR FARNI HAS APPEALED THE ACTION TO THE SEC KENNETH DAVID FREEMAN SWANSEA SC WAS FINED 40000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES FRANCIS W GLAMPA PHILADELPHIA WAS FINED 5000 AND SUSPENDED FOR 10 BUSINESS DAYS AND ORDERED TO PAY 10500 IN RESTITUTION THE ACTION HAS BEEN APPEALED TO THE SEC STEVE A GODDARD HALEYVILLE ALA WAS FINED 5000 AND SUSPENDED FOR 30 DAYS H BARRY GOODMAN DEERFIELD ILL WAS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS RICHARD T GREENFIELD HERMITAGE TENN WAS FINED 15000 AND BARRED WITHOUT ADMITTING OR DENY ALLEGATIONS VINCENT JOHN HIGGINS CAPE CORAL FLA WAS FINED 50000 BARRED AND REQUIRED TO PAY 57568 IN RESTITUTION AND GEORGE CABLE KELLEY FORT MYERS FLA WAS FINED 5000 AND SUSPENDED FOR 10 BUSINESS DAYS MR KELLY DIDN'T ADMIT OR DENY CHARGES SALVATORE ANTHONY IRADI JR MONMOUTH BEACH NJ WAS FINED 25000 BARRED AND REQUIRED TO PAY 41900 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANCIS A JACOB LAKELAND FLA WAS FINED 100000 AND BARRED HAROLD FRANK JANECKY JR EXCELSIOR MINN WAS FINED 20000 AND BARRED IDA M JANTZ OKLAHOMA CITY WAS BARRED WITHOUT ADMITTING OR DENYING CHARGES ROBERT M KAPLAN PARADISE VALLEY ARIZ WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS AND LARRY WILLIAM KENNAUGH MOUNT VERNON WASH WAS FINED 25000 AND SUSPENDED FOR 30 DAYS MR KENNAUGH SAID THE NASD NEVER SUBSTANTIATED ITS CHARGES AGAINST ME THEY FINED ME FOR BUYING AN UNAPPROVED SHELL BROKER DEALER THAT HAD NEVER DONE ANY BUSINESS BRIAN GERARD KRAUSE ST CLAIR SHORES MICH WAS FINED 15000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES AN ATTORNEY FOR MR KRAUSE SAID THAT MR KRAUSE DENIES THE NASD CHARGES BROUGHT AGAINST HIM MR KRAUSE HE SAID WAS A SALESMAN AT HIS COMPANY AT THE TIME THE ALLEGATIONS OCCURRED AND WAS ASSURED BY PRINCIPALS OF HIS COMPANY THAT THE INVESTMENT OPPORTUNITIES THEY WERE SELLING TO PEOPLE DIDN'T REQUIRE REGISTRATION AS SECURITIES THE ATTORNEY ALSO SAID MR KRAUSE HAS PREVIOUSLY ENTERED INTO AN AGREEMENT WITH THE NASD BY WHICH HE WOULDN'T HAVE TO PAY A FINE PROVIDED HE NOT WORK IN THE SECURITIES INDUSTRY IN THE FUTURE JOSEPH L LACHERMELER NORTHGLENN COLO WAS BARRED STEPHEN LENTZ PEABODY MASS WAS FINED 100000 AND BARRED AND REQUIRED TO PAY RESTITUTION TOTALING 25820 WITHOUT ADMITTING OR DENYING CHARGES GEORGE LOCKLEAR PEMBROKE NC WAS FINED 75000 AND BARRED STEVEN W MARZETT BROKEN ARROW OKLA WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DAVID T NADELL CHAIR SHORES MICH WAS FINED 2500 AND SUSPENDED FOR 60 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS RODERICK ODOM SELDEN NY WAS FINED 8000 AND BARRED MICHAEL W OVERLY DAYTON OHIO WAS FINED 8000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS CHRIS G PADGETT AIKEN SC WAS FINED 120000 BARRED AND REQUIRED TO PAY 60000 IN RESTITUTION GREG S PASSALES NEW YORK WAS FINED 20000 AND BARRED DANIEL BRUCE PERRY HENDERSON NEV WAS FINED 25000 BARRED AND ORDERED TO PAY 21554 IN RESTITUTION DAVID JAMES POMPO ROMEO MICH WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANTHONY I PUTMAN DETROIT WAS BARRED WITHOUT ADMITTING OR DENYING CHARGES MARTIN RODRIGUEZ SALINAS CALIF WAS FINED 8390 AND BARRED MICHAEL K ROGLEN XENIA OHIO WAS FINED 65000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES HELENE R SCHWARTZ MAPLE SHADE NJ WAS BARRED IN ANY CAPACITY WITH THE RIGHT TO REAPPLY AFTER ONE YEAR THE ACTION HAS BEEN APPEALED TO THE SEC JOEL EUGENE SHAW GREENVILLE SC WAS FINED 10000 AND BARRED AN ACTION APPEALED TO THE SEC CURTIS LESTER THOMAS BURNSVILLE MINN WAS FINED 20000 AND BARRED GLENDA ZOE TOLLIVER KANSAS CITY MO WAS FINED 100000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES TROY A WETTER GREENVIEW ILL WAS FINED 20000 AND BARRED MR WETTER SAID THAT THE FINE WASN'T JUSTIFIED AND THAT HE COULDN'T PROPERLY DEFEND HIMSELF I WAS NEVER PROVIDED A COMPLETE LAYOUT OF THE COMPLAINT FILED AGAINST ME THE NASD BASED THEIR JUDGMENT OFF RECORDS THAT I DIDN'T HAVE IN MY POSSESSION HE SAID JOHN D WILSHERE JR ST ALBANS WVA WAS FINED 10000 AND SUSPENDED FOR 30 DAYS ROBERT A LACEY MARIETTA GA WAS FINED 10000 WITHOUT ADMITTING OR DENYING CHARGES KLAUS LANGHEINRICH MURRAY UTAH WAS FINED 10000 AN ACTION THAT HAS BEEN APPEALED TO THE SEC MARK A PEROSI STATEN ISLAND NY WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS 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 9402180129 940218 ABREAST OF THE MARKET STOCKS DECLINE AFTER WILD SESSION DOMINATED BY CONCERN OVER RATES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS FINISHED MODERATELY LOWER AFTER A WILD SESSION DOMINATED BY WORRIES ABOUT RISING INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE WAS WHIPPED THROUGH A 50POINT RANGE AS A SOLID MORNING RALLY IN BONDS GAVE WAY TO AN AFTERNOON TUMBLE THAT LIFTED LONGBOND YIELDS TO A SIXMONTH HIGH THE INDUSTRIALS CLOSED WITH A LOSS OF 1463 OR 037 TO 392264 BROADBASED INDEXES ALSO RETREATED WHILE DECLINING ISSUES OUTPACED ADVANCERS 1251 TO 882 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE BIG BOARD WAS ACTIVE AT 338870000 SHARES UP FROM 295390000 WEDNESDAY AND THE HIGHEST SINCE FEB 7 STOCKS AND BONDS STARTED THE DAY SOLIDLY HIGHER AFTER THE LABOR DEPARTMENT GAVE A MODEST READING ON CONSUMERLEVEL INFLATION FOR JANUARY AND THE COMMERCE DEPARTMENT REPORTED A SHARPLY NARROWED DECEMBER TRADE DEFICIT BONDS INITIALLY JUMPED MORE THAN 7/8 POINT AND THE DOW INDUSTRIALS RALLIED 20 THE OPTIMISM DISAPPEARED SHORTLY AFTER THE MARKET OPENED THOUGH AS THE FEDERAL RESERVE BANK OF PHILADELPHIA RELEASED DATA SHOWING A STRONG ECONOMY AND RISING PRICES IN ITS REGION LATER IN THE SESSION WHITE HOUSE ECONOMIC ADVISER LAURA TYSON SAID SURGING EXPORT NUMBERS IN THE MORNING TRADE REPORT COULD MEAN AN UPWARD REVISION IN ESTIMATES OF FOURTHQUARTER GROSS DOMESTIC PRODUCT BOND PRICES COLLAPSED EARLY IN THE AFTERNOON PULLING STOCKS DOWN AS WELL PROGRAM TRADING WHIPPED STOCKS BACK AND FORTH SEVERAL TIMES WITH THE DOW JONES INDUSTRIAL AVERAGE DOWN 30 POINTS AT ITS SESSION LOW THE 30YEAR TREASURY FINISHED WITH A LOSS OF MORE THAN A POINT ITS YIELD CLIMBED TO 654 THE FIRST MOVE ABOVE 65 SINCE AUGUST 1993 THE STANDARD & POOR'S 500 STOCK INDEX LOST 245 OR 052 TO 47034 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 117 OR 045 TO 26138 THE NASDAQ COMPOSITE INDEX SHED 238 OR 030 TO 79024 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX DECLINED 086 OR 018 TO 47446 BOEING AND MCDONNELL DOUGLAS RALLIED FOR A SECOND STRAIGHT DAY ON NEWS THAT SAUDI ARABIA PLANS TO ORDER 6 BILLION WORTH OF AIRCRAFT FROM THE COMPANIES SHARES OF BOEING IN SEATTLE JUMPED 1 1/4 TO 47 3/4 AFTER RISING 2 1/8 WEDNESDAY THE STOCK OF MCDONNELL IN ST LOUIS WAS UP 7/8 TO 119 3/4 ON TOP OF A 1 7/8 GAIN WEDNESDAY US SURGICAL MEANWHILE TUMBLED AGAIN LOSING 3 TO 18 1/2 ON MARKETLEADING VOLUME OF 107 MILLION SHARES AFTER PLUMMETING 5 5/8 LAST SESSION A COURT RULED WEDNESDAY THAT JOHNSON & JOHNSON HADN'T INFRINGED ON A PATENT OF THE NORWALK CONN COMPANY US SURGICAL ALSO SAID IT HIRED ADVISERS TO HELP IT SHORE UP ITS FINANCIAL POSITION JOHNSON & JOHNSON IN NEW BRUNSWICK NJ FELL 1/2 TO 41 1/4 IT ALSO EASED 1/2 WEDNESDAY AMERICAN DEPOSITARY RECEIPTS OF BUENOS AIRES EMBOTELLADORA SKIDDED 6 1/2 TO 42 1/2 BEAR STEARNS BEGAN COVERAGE OF THE ARGENTINE PEPSICOLA BOTTLER WITH AN AVOID RATING ANALYST MELISSA RUTTNER SAID EARNINGS AT THE COMPANY ALSO KNOWN AS BAESA MIGHT BE LOWER THAN SOME EXPECTED FRUIT OF THE LOOM CLIMBED 7/8 TO 26 7/8 THE APPAREL COMPANY IN CHICAGO REPORTED FOURTHQUARTER EARNINGS OF 81 CENTS A SHARE INCLUDING A GAIN OF 55 CENTS COMPARED WITH INCOME OF 51 CENTS LAST YEAR INCLUDING A CHARGE OF 13 CENTS SNAPPLE BEVERAGE SKIDDED 2 3/4 TO 28 ON NASDAQ AFTER HAMBRECHT & QUIST ANALYST JEANMICHEL VALETTE CUT A RATING ON THE COMPANY IN VALLEY STREAM NY TO HOLD FROM BUY THE ANALYST CITED CONCERN THAT A PRICE WAR COULD DEVELOP IN THE ICEDTEA MARKET SEMICONDUCTOR STOCKS SLUMPED AFTER TWO DAYS OF SHARP GAINS MOTOROLA DROPPED 1 3/8 TO 103 1/8 TEXAS INSTRUMENTS FELL 2 TO 76 1/2 AND MICRON TECHNOLOGY LOST 1 1/8 TO 61 1/2 ON NASDAQ APPLIED MATERIALS SHED 1 TO 48 1/2 AND INTEL SLIPPED 1/2 TO 66 1/2 GLAXO HOLDINGS ADDED 5/8 TO 20 1/8 AFTER THE UNITED KINGDOM DRUG COMPANY SAID ITS PRETAX PROFIT JUMPED 22 TO 1 BILLION 148 BILLION IN THE SIXMONTH PERIOD THAT ENDED IN DECEMBER WELL ABOVE ANALYSTS' EXPECTATIONS PIONEER ELECTRONIC'S AMERICAN DEPOSITARY RECEIPTS DECLINED 3 TO 25 THE JAPANESE CONSUMERELECTRONICS COMPANY SAID ITS PRETAX PROFIT TUMBLED 74 TO THREE BILLION YEN 289 MILLION IN THE THIRD QUARTER AN INITIAL PUBLIC OFFERING OF 357 MILLION COMMON SHARES OF MORGAN STANLEY INDIA INVESTMENT FUND WAS PRICED AT 15 A SHARE THROUGH UNDERWRITERS LED BY MORGAN STANLEY THE FUND IS A CLOSEDEND FUND PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES SAID THE 30YEAR BOND YIELD'S MOVE OVER 65 INCREASES THE SHORTTERM RISK IN STOCKS ENOUGH PEOPLE SEEM TO THINK THAT IS A DANGER LEVEL THAT YOU HAD A GOOD SELLOFF YESTERDAY AND YOU MAY SEE MORE WEAKNESS IF BONDS DON'T STABILIZE HE SAID BUT MR CANELO DOESN'T THINK THE DOW JONES INDUSTRIAL AVERAGE IS LIKELY TO FALL BELOW THE 3825 LEVEL HE SAID BOND YIELDS AREN'T LIKELY TO CLIMB TO A LEVEL THAT TRIGGERS A BIG SHIFT OF MONEY OUT OF EQUITIES RICHARD SCARLATA A NEWSLETTER EDITOR AT SUTTON FINANCIAL SERVICES AGREED ALL THOSE SOLID ECONOMIC READINGS THAT ARE BAD FOR BONDS ARE GOOD FOR STOCKS I THINK WE ARE STILL IN A BULL TREND HE SAID 9402180128 940218 TOWERS FINANCIAL'S HOFFENBERG CHARGED WITH FRAUD AND OBSTRUCTION OF JUSTICE BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STEVEN HOFFENBERG A DEBT COLLECTOR WHO BRIEFLY ENJOYED THE SPOTLIGHT DURING AN ILLFATED ATTEMPT TO BUY THE NEW YORK POST LAST YEAR WAS CHARGED YESTERDAY WITH SECURITIES FRAUD AND OBSTRUCTION OF JUSTICE IN A COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN THE US ATTORNEY FOR THE SOUTHERN DISTRICT OF NEW YORK CHARGED MR HOFFENBERG AND OTHERS WITH FRAUDULENTLY SELLING INVESTORS 450 MILLION OF SECURITIES IN TOWERS FINANCIAL CORP MR HOFFENBERG'S DEBTCOLLECTION BUSINESS THE COMPLAINT ALLEGED THAT MR HOFFENBERG AND HIS CONFEDERATES FALSIFIED TOWERS'S FINANCIAL RECORDS TO MAKE THE COMPANY APPEAR MORE ATTRACTIVE TO POTENTIAL INVESTORS AND THE COMPLAINT CONTINUED PROCEEDS FROM THE SALE OF THOSE SECURITIES WERE USED TO REPAY EARLIER INVESTORS IN THE COMPANY MOREOVER THE COMPLAINT CHARGED THAT MR HOFFENBERG AND OTHERS CONSPIRED TO OBSTRUCT AN INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION INTO TOWERS'S FRAUDULENT PRACTICES THE SEC WHICH BEGAN INVESTIGATING TOWERS IN 1989 SUED THE COMPANY LAST YEAR FOR DEFRAUDING INVESTORS BUT BY THE TIME THE SEC CAUGHT UP WITH MR HOFFENBERG TOWERS WAS NEARLY INSOLVENT IT FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN MARCH EFFECTIVELY PUTTING THE SEC'S ACTION ON HOLD AS COURTAPPOINTED TRUSTEES BEGAN SORTING THROUGH TOWERS'S AFFAIRS YESTERDAY'S COMPLAINT ALLEGED THAT MR HOFFENBERG WHO HAD BEEN COOPERATING WITH THE GOVERNMENT THROUGH A PLEA AGREEMENT OBSTRUCTED THE SEC INVESTIGATION BY LYING UNDER OATH IN SEC DEPOSITIONS AND BY FALSIFYING DOCUMENTS IN RESPONSE TO SEC SUBPOENAS NEITHER MR HOFFENBERG NOR HIS ATTORNEY JEFFREY HOFFMAN A PARTNER WITH THE FIRM OF HOFFMAN & POLLOK COULD BE REACHED FOR COMMENT BUT THE SEC SAID IT WAS GRATIFIED BY THE RESURRECTION OF ITS CASE WE'RE VERY HAPPY WITH IT SAID RICHARD WALKER DIRECTOR OF THE SEC'S NORTHEAST REGIONAL OFFICE THE CONDUCT CHARGED IN YESTERDAY'S COMPLAINT HELPED UNMASK ONE OF THE LARGEST PONZI SCHEMES IN HISTORY THE CHARGES ALLEGED THAT MR HOFFENBERG MATERIALLY BREACHED THE TERMS OF A PLEA ARRANGEMENT WITH THE GOVERNMENT THUS VOIDING ALL TERMS OF THAT AGREEMENT THIS ALLOWED THE GOVERNMENT TO USE STATEMENTS MADE BY MR HOFFENBERG DURING THE TIME THE PLEA AGREEMENT WAS IN EFFECT AS EVIDENCE IN YESTERDAY'S CHARGES THE US ATTORNEY'S OFFICE DECLINED TO PROVIDE ANY DETAILS ABOUT THE PLEA AGREEMENT OR HOW MR HOFFENBERG VIOLATED IT IN A DEPOSITION FILED WITH THE CASE BY JOHN HESS A SPECIAL AGENT WITH THE FEDERAL BUREAU OF INVESTIGATION MR HESS STATED THAT HOFFENBERG AND HIS CONFEDERATES INVESTED A SUBSTANTIAL AMOUNT OF TIME AND MONEY TO ENSURE THAT THE WITNESSES THEY CONTROLLED MISLED THE SEC AT EVERY TURN ACCORDING TO THE DEPOSITION MR HOFFENBERG FABRICATED COMPUTER RUNS OF CERTAIN ACCOUNTS RECEIVABLES TO SUBSTANTIATE THE BOGUS ACCOUNTING THEORIES THAT HOFFENBERG AND HIS CONFEDERATES ADOPTED DURING THE COURSE OF THE SEC INVESTIGATION TO SUPPORT THEIR FRAUDULENTLY PREPARED FINANCIAL STATEMENTS THE US ATTORNEY'S OFFICE SAID MR HOFFENBERG WAS PRESENTED BEFORE A FEDERAL MAGISTRATE AT A BAIL HEARING YESTERDAY HE WAS RELEASED ON A 1 MILLION BOND THAT WAS COSIGNED BY MARY HASHO WHO PUT UP HER HOUSE AS COLLATERAL ON THE BOND MS HASHO WAS IDENTIFIED IN AN EARLIER SUIT FILED AGAINST MR HOFFENBERG IN US BANKRUPTCY COURT BY THE TOWERS TRUSTEES AS MR HOFFENBERG'S PARAMOUR AND NOW EXPECTANT MOTHER OF HIS CHILD WHO AT ONE TIME WORKED AS A REALESTATE BROKER IN MELVILLE NY MR HOFFENBERG WAS ORDERED BY THE MAGISTRATE TO SURRENDER HIS PASSPORT AND WAS FORBIDDEN TO APPROACH POTENTIAL WITNESSES IF CONVICTED OF THE CHARGES MADE IN YESTERDAY'S COMPLAINT MR HOFFENBERG FACES A MAXIMUM SENTENCE OF 15 YEARS IN PRISON A 500000 FINE AND THREE YEARS OF SUPERVISED RELEASE 9402180127 940218 NASD PANEL LEVIES SANCTION ON PRUDENTIAL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC WAS SANCTIONED BY AN ARBITRATION PANEL FOR EGREGIOUSLY IMPROPER BEHAVIOR IN DEFENDING ITSELF IN A CASE BROUGHT BY ITS FORMER RISKARBITRAGE CHIEF THE SANCTION BY A PANEL OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WAS UNUSUAL ARBITRATION PANELS TYPICALLY DON'T SPELL OUT THE REASONS FOR THEIR DECISIONS BUT PRUDENTIAL SECURITIES HAD DESTROYED SOME DOCUMENTS AND FAILED TO PRODUCE OTHERS IN THE CASE PEOPLE FAMILIAR WITH THE MATTER SAY THE PANEL IMPOSED THE SANCTION WHICH REQUIRES PRUDENTIAL TO PAY 250000 IN ATTORNEYS' FEES IN A FIVEPAGE OPINION AN ADDITIONAL SANCTION OF 1000 WAS FOR FAILURE TO COMPLY WITH THIS PANEL'S ORDER OF PRODUCTION OF DOCUMENTS TO CLAIMANT THE OPINION SAID THE SANCTIONS WERE PART OF A 960000 AWARD TO THE FORMER RISKARBITRAGE CHIEF PRUDENTIAL DECLINED TO COMMENT IT'S NOT THE FIRST TIME THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA HAS BEEN CRITICIZED FOR WITHHOLDING DOCUMENTS LAST YEAR A NEW YORK STATE COURT THREATENED PRUDENTIAL WITH FINES FOR REFUSING TO DISCLOSE A CONFIDENTIAL REPORT PREPARED BY A LAW FIRM COUNSELING THE BROKERAGE HOUSE IN AN ENERGYPARTNERSHIP CASE THE NASD SANCTION SUGGESTS THAT PRUDENTIAL CONTINUES TO USE HARDBALL LEGAL TACTICS IN ARBITRATION CASES STATE SECURITIES REGULATORS HAVE WARNED PRUDENTIAL NOT TO STRONGARM INVESTORS IN ARBITRATIONS OVER LIMITEDPARTNERSHIP DISPUTES THE SANCTION INDICATES THAT THIS WAS A SERIOUS AND COMPREHENSIVE VIOLATION OF NASD RULES WITH REGARD TO CONDUCT IN ARBITRATIONS SAID JEFFREY LIDDLE A NEW YORK ATTORNEY SPECIALIZING IN EMPLOYMENT DISPUTES INVOLVING BROKERAGE FIRMS THE CASE WAS BROUGHT BY GUY WYSERPRATTE WHO WAS PRUDENTIAL'S RISKARBITRAGE CHIEF FOR 19 YEARS MR WYSERPRATTE ONE OF WALL STREET'S BESTKNOWN ARBITRAGERS LEFT PRUDENTIAL IN DECEMBER 1990 WHEN THE FIRM ABRUPTLY PULLED OUT OF THE RISKARBITRAGE BUSINESS IN PAPERS FILED WITH ARBITRATORS HE ARGUED THAT PRUDENTIAL VIOLATED AN ORAL EMPLOYMENT AGREEMENT THAT WAS TO HAVE BEEN EXTENDED AUTOMATICALLY EACH YEAR UNLESS CANCELED IN WRITING BY NOV 30 HE SAYS HIS CONTRACT HAD BEEN RENEWED AUTOMATICALLY FOR 1991 HE ALSO ALLEGED THAT PRUDENTIAL VIOLATED THE EMPLOYMENT CONTRACT BY SLASHING THE AMOUNT OF CAPITAL IN HIS GROUP TO 25 MILLION FROM 375 MILLION ACCORDING TO THE PAPERS FILED WITH ARBITRATORS MR WYSERPRATTE WHO NOW RUNS HIS OWN ARBITRAGE FIRM WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT THE DECISION HANDED DOWN IN LATE DECEMBER WAS ONLY RECENTLY MADE PUBLIC MR WYSERPRATTE HAD ASKED FOR DAMAGES OF MORE THAN 10 MILLION THE PANEL WITHOUT COMMENT AWARDED HIM DAMAGES AND ATTORNEY FEES TOTALING 960000 WE'RE PLEASED THAT GUY'S WORD WAS UPHELD AND THAT PRUDENTIAL WAS ORDERED TO HONOR ITS CONTRACT WITH HIM SAID MICHAEL J DELL HIS ATTORNEY IN NEW YORK PRUDENTIAL ARGUED THAT IT WASN'T AWARE OF ANY EMPLOYMENT AGREEMENT WRITTEN OR ORAL WITH MR WYSERPRATTE IN PAPERS FILED WITH ARBITRATORS PRUDENTIAL SAID MR WYSERPRATTE'S EMPLOYMENT CONTRACT WAS TERMINATED IN NOVEMBER 1985 AND NOT RENEWED REVISED OR EXTENDED THE COMPANY SAYS HE CONTINUED TO WORK UNTIL 1990 WITHOUT A CONTRACT AMONG THE PRUDENTIAL EXECUTIVES WHO TESTIFIED AGAINST MR WYSERPRATTE IN THE CASE WERE GEORGE L BALL FORMER CHAIRMAN AND CHIEF EXECUTIVE OF PRUDENTIAL PEOPLE FAMILIAR WITH THE CASE SAID MR BALL COULDN'T BE REACHED TO COMMENT PRUDENTIAL ALSO ARGUED THAT THE RISKARBITRAGE DEPARTMENT HAD LOSSES OF 70 MILLION IN 1990 AND THAT IT SHUT DOWN THE OPERATION AS PART OF A LARGER CUTBACK IN MERCHANT BANKING FOR HIS PART MR WYSERPRATTE SAID HIS ARBITRAGE GROUP GENERATED NET PROFITS TOTALING 202 MILLION FROM 1968 TO 1989 ACCORDING TO PAPERS FILED WITH ARBITRATORS THE REST OF THE FIRM HAD NET LOSSES OF 133 MILLION DURING THAT TIME HE SAID 9402180126 940218 MEDIA & MARKETING MACY MAY SEEK SHORTER PERIOD FOR EXTENSION BY PATRICK M REILLY AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO IN AN EFFORT TO KEEP PEACE WITH KEY CREDITORS IS LIKELY TO AGREE TO A SHORTERTHANEXPECTED EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A BANKRUPTCY REORGANIZATION PLAN MACY OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION FOR MORE THAN TWO YEARS IS SEEKING TO AVERT A PUBLIC BATTLE WITH ITS MOST IMPORTANT CREDITORS AT A CRUCIAL COURT DATE IN BANKRUPTCY COURT IN LOWER MANHATTAN NEXT TUESDAY MACY ORIGINALLY HAD FILED FOR A SIXMONTH EXTENSION FROM THE CURRENT EXPIRATION DATE OF MARCH 15 BUT IS NOW EXPECTED TO SEEK AN EXTENSION IN THE EXCLUSIVITY PERIOD THAT DOESN'T GO BEYOND THE END OF JULY ACCORDING TO PEOPLE CLOSE TO THE RETAILER MACY IS CONSIDERING PROPOSING A SHORTER EXCLUSIVITY PERIOD POSSIBLE FOUR MONTHS IN RETURN FOR GUARANTEES THAT SECURED CREDITORS WILL NOT OBJECT TO THE EXTENSION IN RECENT WEEKS THE RETAILER HAS FACED RUMBLINGS FROM SOME CREDITORS WHO PRIVATELY OBJECTED TO THE LENGTH OF THE EXTENSION REQUEST SOME HAVE SUGGESTED THEY MIGHT FORMALLY OBJECT IN FILINGS WITH THE BANKRUPTCY COURT THE RETAILER BELIEVES COURT APPROVAL OF ANOTHER EXTENSION IS CRITICAL FOR RALLYING ALL THE CREDITOR GROUPS TO A REORGANIZATION PLAN THAT LEAVES MACY INDEPENDENT MACY IS CURRENTLY FENDING OFF FEDERATED DEPARTMENT STORES INC A RIVAL AND NOW SENIOR CREDITOR THAT WANTS TO MERGE THE TWO DEPARTMENT STORE CHAINS NEGOTIATIONS BETWEEN MACY AND ATTORNEYS FOR SECURED CREDITORS HEATED UP RECENTLY OVER REACHING A COMPROMISE ON THE EXTENSION'S LENGTH MACY'S TWO LARGEST CREDITORS FIDELITY INVESTMENTS AND FEDERATED HAVEN'T SAID WHAT THEY WILL DO BUT PEOPLE INVOLVED WITH THE DISCUSSIONS SAY FIDELITY IS READY FOR A COMPROMISE AND WILL LIKELY NOT FILE AN OBJECTION MACY DECLINED TO COMMENT ONCE THE EXCLUSIVITY PERIOD EXPIRES FEDERATED OR ANY OTHER CREDITOR COULD SUBMIT A COMPETING REORGANIZATION PLAN MACY CREDITORS INCLUDING BANKS THAT HOLD SENIOR DEBT SECURED BY THE RETAILER'S STORES AND OWNERS OF ITS UNSECURED BONDS MUST APPROVE ANY PLAN OF REORGANIZATION BEFORE THE COMPANY CAN EMERGE FROM BANKRUPTCY COURT MACY IS TALKING TO ITS SECURED CREDITORS BECAUSE THEIR 24 BILLION IN CLAIMS ARE THE FIRST TO BE PAID OFF IN A REORGANIZATION PLAN AND MOST LIKELY TO OBJECT TO A PROLONGED BANKRUPTCY PROCEEDING A MACY ADVISER TALKED WITH DAN HARMETZ THE FIDELITY MUTUAL FUND MANAGER RESPONSIBLE FOR THE BOSTON FUND COMPANY'S 490 MILLION STAKE ABOUT THE EXTENSION EARLIER THIS WEEK MR HARMETZ WOULD NOT COMMENT ON THE TALKS TRUST CO OF THE WEST ANOTHER SECURED CREDITOR WITH ABOUT A 80 MILLION STAKE DECLINED COMMENT FEDERATED'S ATTORNEY DAVID HEIMAN OF JONES DAY REAVIS & POGUE MET YESTERDAY WITH MACY EXECUTIVES MY EXPECTATION IS THAT FEDERATED WILL PROBABLY FOLLOW THE CREDITORS WHO ARE EXPECTED TO AGREE WITH A NEW SHORTER EXTENSION PERIOD SAID ONE PERSON FAMILIAR WITH THE TALKS THEY DON'T WANT TO GET OUT IN FRONT OF THE OTHER CREDITORS MACY AND CREDITORS COULD REACH A COMPROMISE BEFORE NEXT WEEK'S COURT APPEARANCE BEFORE JUDGE BURTON LIFLAND REDUCING THE SIXMONTH EXTENSION REQUEST WOULDN'T PLEASE MACY'S UNSECURED CREDITORS WHO STAND TO GET A BETTER RETURN ON THEIR CLAIMS THE LONGER MACY REMAINS UNDER BANKRUPTCY PROTECTION WHICH IS EXPECTED TO HELP THE RETAILER'S CASH FLOW ROBERT MILLER AN ATTORNEY WITH BERLACK ISRAELS & LIBERMAN WHO REPRESENTS HOLDERS OF 13 BILLION IN MACY BONDS SAID I WOULD BE VERY UNHAPPY IF MACY AGREED TO SOMETHING THAT IS SIGNIFICANTLY SHORTER THAN SIX MONTHS THAT WOULDN'T BE A REALISTIC AMOUNT OF TIME IN WHICH TO DEVELOP A CONSENSUAL PLAN HE ADDED THERE IS A LOT OF STUFF TO BE DONE HERE 9402180125 940218 UNITS OF DOW CHEMICAL SANDOZ TO COPROMOTE TWO PRODUCTS IN US KANSAS CITY MO MARION MERRELL DOW INC AND SANDOZ PHARMACEUTICALS CORP SAID THEY AGREED TO COPROMOTE TWO PRODUCTS IN THE US THE ARRANGEMENT IS ESSENTIALLY A MARKETING PARTNERSHIP MARION MERRELL WILL HELP SELL SANDOZ'S LESCOL CHOLESTEROLLOWERING AGENT WHICH RECEIVED MARKETING CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION IN DECEMBER SANDOZ CONVERSELY WILL SELL MARION MERRELL'S SABRIL ANTIEPILEPSY DRUG IN THE US MARION MERRELL PLANS TO ASK THE FDA FOR US MARKETING APPROVAL SHORTLY MARION MERRELL CURRENTLY SELLS SABRIL IN ABOUT 31 COUNTRIES THE COPROMOTION ARRANGEMENT WILL LAST SIX YEARS FROM THE LAUNCH OF EACH PRODUCT FINANCIAL TERMS WEREN'T DISCLOSED THE COPROMOTION ARRANGEMENT WILL ALLOW SANDOZ TO LEVERAGE OFF MARION MERRELL'S STRENGTH IN THE CARDIOVASCULAR DRUG MARKETPLACE A MARION SPOKESMAN SAID AND GIVES THE US COMPANY ACCESS TO SANDOZ'S STRONG POSITION IN THE FIELD OF NEUROLOGICAL MEDICINES SANDOZ PHARMACEUTICALS IN EAST HANOVER NJ IS A UNIT OF SWITZERLAND'S SANDOZ AG MARION MERRELL DOW IS 72OWNED BY DOW CHEMICAL CO 9402180124 940218 DIVIDEND NEWS KEYCORP KEYCORP AN ALBANY NY BANK HOLDING COMPANY BOOSTED ITS QUARTERLY DIVIDEND 24 TO 3856 CENTS A SHARE FROM 31 CENTS THE DIVIDEND IS PAYABLE MARCH 15 TO SHARES OF RECORD FEB 28 KEYCORP SAID THE INCREASE WILL MAKE ITS DIVIDEND RATE EQUIVALENT TO THAT OF CLEVELANDBASED SOCIETY CORP WHICH IS SCHEDULED TO COMPLETE ITS MERGER WITH KEYCORP ON MARCH 1 9402180123 940218 TEST OF UNISYS SERVICE MCLEAN VA UNISYS CORP SAID THE US POSTAL SERVICE WILL BEGIN FIELDTESTING OF UNISYS'S SELFSERVICE POSTAGE AND MAILING CENTER TOMORROW AT A POST OFFICE IN MERRIFIELD VA THE COMPANY SAID THE MAILING CENTER PROVIDES 24HOUR SERVICE WITHOUT INVOLVING A RETAIL CLERK THE COMPANY SAID THE SYSTEM WEIGHS MAIL ACCEPTS CASH PAYMENTS AND ISSUES STAMPS AT VARYING RATES THE COMPANY SAID THE POSTAL SERVICE WILL BRING THE MAILING CENTERS TO FIVE MORE NORTHERN VIRGINIA LOCATIONS ON MONDAY 9402180122 940218 BELL ATLANTIC AND TCI ARE CONDUCTING TALKS TO REVISE TERMS OF ACQUISITION BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP IS IN TALKS TO REVISE THE FINANCIAL TERMS OF ITS MULTIBILLIONDOLLAR ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC FOLLOWING A DECLINE IN BELL ATLANTIC'S STOCK PRICE AND A CLOUDY OUTLOOK FOR TCI'S CASH FLOW THE RENEGOTIATION IS ONE REASON WHY THE REGIONAL BELL TELEPHONE COMPANY AND TCI HAVE ALREADY RUN PAST TWO DEADLINES FOR HAMMERING OUT A FINAL PACT THE COMPANIES RECENTLY SAID THEY HOPE TO COMPLETE THE TASK BY MIDFEBRUARY BUT THEY HAVEN'T COME TO TERMS AND NOW WON'T SPECIFY A NEW DEADLINE PEOPLE FAMILIAR WITH THE TALKS SAID BOTH SIDES ARE LOOKING AT A FEW KEY ELEMENTS THEY INCLUDE DETERMINING HOW MANY NEW SHARES BELL ATLANTIC WILL HAVE TO ISSUE TO ACQUIRE TCI'S EXTENSIVE ASSETS AND HOW THEY SHOULD BE VALUED AND THE MECHANISM AND TIMING FOR PUTTING A VALUE ON THE PROGRAMMING ASSETS THAT TCI AND ITS LIBERTY MEDIA SPINOFF HOLD BELL ATLANTIC DECLINED TO COMMENT YESTERDAY AND A TCI SPOKESMAN COULDN'T BE REACHED THE PROTRACTED DICKERING IS VIEWED IN PART AS A TRADEMARK MANUEVER OF TCI CHIEF EXECUTIVE OFFICER JOHN C MALONE WHO IS KNOWN IN THE CABLE BUSINESS FOR RENEGOTIATING AFTER A TENTATIVE DEAL HAS BEEN SIGNED BUT IT ALSO REFLECTS THE UNEVEN FORTUNES OF BOTH COMPANIES AS THE EUPHORIA HAS FADED IN THE FOUR MONTHS SINCE THE HUGE ACQUISITION WAS ANNOUNCED BELL ATLANTIC'S SHARES SURGED AFTER THE TCI COUP CLOSING AT A HIGH OF 67625 ON OCT 14 THE DAY AFTER THE DEAL WAS ANNOUNCED THAT WAS MORE THAN 20 HIGHER THAN WHERE THE STOCK TRADED AT THE START OF OCTOBER BUT YESTERDAY BELL ATLANTIC SHARES FELL 125 TO 53125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BELOW EVEN THE GUARANTEED VALUE OF 54 A SHARE THAT BELL ATLANTIC HAD SET FOR THE STOCK IT WOULD PAY TO ACQUIRE TCI UNDER THE ORIGINAL AGREEMENT FOR TCI THE CONCERN IS THAT ITS CASHFLOW OUTLOOK IS NOW MORE UNCERTAIN THAN WHEN THE DEAL WAS UNVEILED IN MIDOCTOBER AT THE TIME THE COMPANIES HAD AGREED THAT BELL ATLANTIC WOULD PAY A FINAL PRICE FOR TCI ASSETS BASED ON 1175 TIMES CASH FLOW IN THE QUARTER PRECEDING THE DEAL'S CLOSING PROBABLY THE FOURTH QUARTER OF 1994 BUT NOW THE FEDERAL COMMUNICATIONS COMMISSION HAS EXTENDED A FREEZE ON CABLE RATES UNTIL MAY ON TUESDAY THE FCC WILL TAKE UP THE ISSUE OF WHETHER TO IMPOSE FURTHER CUTS IN CABLE PRICES POSING A NEW THREAT TO THE CASH FLOW OF TCI SYSTEMS IT APPEARS THERE'S A FAIR AMOUNT OF CLOUDCOVER OVER THIS DEAL RIGHT NOW SAID MARION BOUCHER AN ANALYST WITH BEAR STEARNS & CO A LOT OF ISSUES COULD MAKE THIS DEAL VEER OFF INTO DIRECTIONS THAT THE COMPANIES NEVER INTENDED TO TAKE WHEN BELL ATLANTIC FIRST MADE ITS BOLD BID FOR TCI IT WAS VALUED AT AS MUCH AS 16 BILLION FOR MOST TCI CABLE SYSTEMS AND ITS PROGRAMMING INTERESTS PLUS THE ASSUMPTION OF ABOUT 10 BILLION IN TCI DEBT THOSE NUMBERS HOWEVER WERE BASED ON A VARIETY OF MEASURES INCLUDING TCI'S CASH FLOW RATHER THAN LEAVE THE FINAL PRICE TO THE VAGARIES OF CASHFLOW MULTIPLES TCI ADVISERS ARE SAID TO BE PURSUING A DIFFERENT APPROACH MR MALONE IS CONCERNED ABOUT BELL ATLANTIC'S INITIAL PLANS TO PAY IN THE FORM OF A NEW CLASS OF STOCK THAT WOULDN'T PAY A DIVIDEND FOR FIVE YEARS ONE EXECUTIVE FAMILIAR WITH THE DISCUSSIONS SAID IN PARTICULAR THE MALONE CAMP IS SAID TO WORRY ABOUT HOW TO PLACE A VALUE ON THE NEW SHARES AND WHAT LEVEL THEY MIGHT TRADE AT ON THE OPEN MARKET COMPARED WITH REGULAR BELL ATLANTIC SHARES THAT PAY AN ANNUAL DIVIDEND OF 268 MR MALONE IS NO FAN OF DIVIDENDS PREFERRING TO REINVEST FUNDS IN THE BUSINESS BUT THE ONE THING JOHN MALONE LIKES LESS THAN DIVIDENDS IS NOT KNOWING THE VALUE OF WHAT HE HAS SAID ONE PERSON FAMILIAR WITH THE SITUATION ONE EXECUTIVE FAMILIAR WITH THE SITUATION SAID A POSSIBLE SOLUTION WOULD INVOLVE USING REGULAR DIVIDENDPAYING SHARES RATHER THAN THE NEW CLASS OF NONDIVIDEND STOCK BUT OTHER ADVISERS DIMISS THAT SOLUTION AS UNLIKELY IN PART THAT'S BECAUSE SUCH A MOVE WOULD REQUIRE BELL ATLANTIC TO PAY PERHAPS 600 MILLION A YEAR IN EXTRA DIVIDENDS BEYOND THE 11 BILLION A YEAR IT ALREADY PAYS OUT BELL ATLANTIC CHAIRMAN RAYMOND SMITH HAS MADE KEEPING THE COMPANY'S REGULAR DIVIDEND INTACT A CENTRAL PROMISE AS HE TRIES TO WIN SUPPORT FOR THE TCI ACQUISITION THAT WOULD BE MADE ALL THE MORE DIFFICULT IF THE COMPANY AT A TIME WHEN IT PLANS TO SPEND BILLIONS ON NEW INTERACTIVE NETWORKS HAD TO PONY UP EVEN MORE DIVIDEND CASH BELL ATLANTIC FOR ITS PART HOPES TO FIND A WAY TO LESSEN THE EARNINGS DILUTION CAUSED BY THE ENORMOUS NUMBER OF NEW SHARES IT MUST ISSUE TO ACQUIRE TCI AND LIBERTY THE ORIGINAL PACT CALLS FOR IT TO PAY 220 MILLION NEW SHARES FOR MOST TCI CABLE SYSTEMS WHICH WOULD FORCE UP A REDUCTION OF AS MUCH AS 35 IN ITS PERSHARE EARNINGS PLUS AN ADDITIONAL LOAD OF ABOUT 188 MILLION SHARES TO ACQUIRE TCI'S AND LIBERTY'S EQUITY IN CABLE CHANNELS BUT THE BABY BELL WOULD HAVE TO ISSUE EVEN MORE SHARES IF ITS OWN STOCK PRICE CONTINUES TO SLIDE BELOW THE 54 LEVEL IT HAD GUARANTEED WHEN IT SIGNED THE PRELIMINARY AGREEMENT THAT WOULD FURTHER HURT ITS REPORTED PERSHARE EARNINGS UNLESS THE COMPANY CAN FIND A WAY TO RENEGOTIATE TERMS AND PAY OUT A LOWER NUMBER OF NEW SHARES THE TWO SIDES ALSO ARE DICKERING OVER HOW AND WHEN TO ACQUIRE THE PROGRAMMING ASSETS ORIGINALLY THEY HAD CONCEIVED FORMING AN INDEPENDENT COMPANY AND HAVING BELL ATLANTIC ACQUIRE IT ONLY LATER AT A PRICE TO BE DETERMINED AT THAT TIME AFTER RECEIVING NECESSARY FEDERAL APPROVALS NOW THEY ARE LOOKING AT SETTING A HARD VALUE FOR THE PROGRAMMING STAKES UP FRONT BEFORE TCI'S CASHFLOW OUTLOOK COULD DETERIORATE AND FINALIZING THE PRICE AND TERMS BEFORE WINNING THE REGULATORY GOAHEAD JOHNNIE L ROBERTS CONTRIBUTED TO THIS ARTICLE 9402180121 940218 FOODMAKER SETS PAYMENT IN BACTERIA DEATH OF BOY SAN DIEGO FOODMAKER INC SAID IT AGREED TO PAY 13 MILLION TO SETTLE A LAWSUIT BROUGHT BY THE PARENTS OF A TACOMA WASH TWOYEAROLD WHO DIED LAST YEAR AFTER EATING A TAINTED HAMBURGER AT A JACK IN THE BOX RESTAURANT THE BOY MICHAEL JAMES NOLE WAS THE FIRST TO DIE IN THE OUTBREAK OF E COLI BACTERIA MORE THAN 400 PEOPLE MOSTLY IN WASHINGTON STATE BECAME ILL AFTER EATING TAINTED JACK IN THE BOX BURGERS THE COMPANY HAS STATED FROM THE BEGINNING OF THIS OUTBREAK THAT WE WERE COMMITTED TO DOING WHAT IS RIGHT FOODMAKER SPOKESWOMAN SHEREE ZIZZI SAID FOODMAKER HAS REACHED SETTLEMENTS IN CASES INVOLVING THREE OTHER VICTIMS WHO DIED IN THE OUTBREAK THOUGH IT HASN'T DISCLOSED THE AMOUNTS THE SETTLEMENTS ARE COVERED UNDER A 100 MILLION COMPREHENSIVE INSURANCE POLICY THAT FOODMAKER HAS WITH CHUBB CORP MS ZIZZI SAID STILL OUTSTANDING ARE SOME 20 LAWSUITS FILED BY INDIVIDUALS WHO GOT SICK IN THE OUTBREAK AS WELL AS A CLASSACTION LAWSUIT FILED ON BEHALF OF ABOUT 470 VICTIMS AND THEIR FAMILY MEMBERS IN AN ARRANGEMENT THAT SETTLES PART OF THE CLASSACTION LAWSUIT FOODMAKER IN NOVEMBER SAID IT WOULD CREATE A MONITORING PROGRAM AND A TRUST FUND TO PAY CERTAIN COSTS 9402180120 940218 HEALTH CARE & RETIREMENT PACT TOLEDO OHIO HEALTH CARE & RETIREMENT CORP AND CINCINNATIBASED OMNICARE INC A PROVIDER OF PHARMACY SERVICES FOR LONGTERM CARE FACILITIES FORMED A STRATEGIC PARTNERSHIP AIMED AT DEVELOPING AN INTEGRATED SERVICE NETWORK UNDER TERMS OF THE AGREEMENT EACH COMPANY WILL MAKE EQUAL CAPITAL CONTRIBUTIONS TO THE 5050 PARTNERSHIP WHICH WILL BE CALLED HEARTLAND HEALTHCARE SERVICES THE PARTNERSHIP AGREEMENT HAS A 15YEAR MINIMUM TERM HEALTH CARE & RETIREMENT A PROVIDER OF LONGTERM CARE OPERATES 130 NURSING CENTERS WITH MORE THAN 16500 BEDS IN 16 STATES OMNICARE SERVES MORE THAN 100000 RESIDENTS IN 1200 NURSING FACILITIES IN NINE STATES 9402180119 940218 ECONOMY BUNDESBANK CUTS KEY LENDING RATE MOVING CAUTIOUSLY TO SPUR ECONOMY BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT ATTEMPTING AGAIN TO SPUR THE GERMAN ECONOMY THE BUNDESBANK CUT A KEY LENDING RATE BUT STOPPED SHORT OF A BROADER MONETARY EASING THE GERMAN CENTRAL BANK'S ANNOUNCEMENT THAT IT HAD LOWERED ITS DISCOUNT RATE TO 525 FROM 575 CAUGHT ECONOMISTS AND FINANCIAL MARKETS BY SURPRISE AND TRIGGERED INTERESTRATE REDUCTIONS IN AUSTRIA THE NETHERLANDS BELGIUM AND ITALY THE BUNDESBANK PREVIOUSLY LOWERED INTEREST RATES LAST OCTOBER THE CENTRAL BANK IS TRYING TO STIMULATE GERMANY'S SLUMPING ECONOMY AND ITS RATE REDUCTIONS HAVE THE BROADER BENEFIT OF TOUCHING OFF MONETARY EASINGS IN OTHER EUROPEAN COUNTRIES AS WELL SUCH STIMULUS IS WELCOMED IN THE US BECAUSE OFFICIALS BELIEVE THAT AS THE ECONOMIES OF EUROPE STRENGTHEN EUROPEANS' APPETITE FOR US GOODS SHOULD RISE THE NEW US EMISSARY TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT DAVID AARON ARGUED IN A RECENT LETTER TO THE HEAD OF THE PARISBASED ORGANIZATION THAT THE US BELIEVES THERE IS SUBSTANTIAL ROOM TO REDUCE SHORTTERM INTEREST RATES TO STIMULATE AGGREGATE DEMAND IN EUROPE GERMAN GOVERNMENT OFFICIALS APPLAUDED THE BUNDESBANK'S DECISION HOPING FOR AN ECONOMIC BOOST THAT WILL HELP CHANCELLOR HELMUT KOHL IN NEXT OCTOBER'S NATIONAL ELECTION AND POSSIBLY WILL QUIET US CALLS FOR MORE STIMULUS IN EUROPE THE BUNDESBANK'S RATECUT ANNOUNCEMENT WAS MADE AFTER THE STOCK EXCHANGE CLOSED IN FRANKFURT BUT SHARES JUMPED IN AFTERMARKET TRADING OTHER EUROPEAN STOCK EXCHANGES RALLIED IN LATE TRADING WHILE THE FOUR OTHER CENTRAL BANKS FOLLOWED THE BUNDESBANK WITH RATE CUTS OF THEIR OWN OTHER COUNTRIES WHOSE CURRENCIES HAVE CLOSE LINKS TO THE MARK HELD BACK NOTABLY FRANCE THE COUNTRIES WERE BELIEVED TO BE WAITING TO SEE HOW THE FOREIGNEXCHANGE MARKET REACTED TO THE BUNDESBANK'S ANNOUNCEMENT ALTHOUGH RATE REDUCTIONS OFTEN CAN WEAKEN A CURRENCY THE MARK WAS STABLE AFTER THE RATE CUT IT MIGHT TAKE DAYS BEFORE THERE IS MORE OF A FOLLOWUP BY OTHER CENTRAL BANKS IN EUROPE SAID MADS JACOBSEN HEAD OF TREASURY AT DEN DANSKE BANK IN COPENHAGEN DESPITE THE OPTIMISM THAT THE RATE CUT TRIGGERED AMONG GERMAN GOVERNMENT OFFICIALS AND ON THE STOCK MARKET THE EFFECT OF THE ACTION BY THE BUNDESBANK WAS LIMITED FOR ONE THING THE CENTRAL BANK ACTED TO LOWER ONLY ONE OF TWO IMPORTANT INTEREST RATES OVER WHICH IT HAS CONTROL FOR ANOTHER ECONOMISTS AND BUSINESS LEADERS SAID THAT LOWER INTEREST RATES ALONE WON'T OVERCOME DEEP STRUCTURAL IMBALANCES IN THE GERMAN ECONOMY AND WILL DO LITTLE TO PUT GERMANY'S FOUR MILLION UNEMPLOYED BACK TO WORK THE CUT IN THE DISCOUNT RATE TO 525 LEFT THE RATE AT ITS LOWEST POINT SINCE IT PEAKED AT 875 IN JULY 1992 THE RATE IS CHARGED ON SOME BORROWINGS THAT BANKS MAKE FROM THE CENTRAL BANK BUT THE BUNDESBANK ALWAYS CAUTIOUS ABOUT INFLATION LEFT UNCHANGED AT 6 THE INTEREST RATE FOR ITS SECURITIESREPURCHASE AGREEMENTS THE SOCALLED REPO RATE IS CONSIDERED AT LEAST AS IMPORTANT AS THE DISCOUNT RATE IT IS A KEY REFINANCING FACILITY FOR THE BANKING SYSTEM AND PLAYS A BIGGER ROLE THAN THE DISCOUNT RATE IN GUIDING MONEYMARKET RATES ALSO LEFT UNCHANGED WAS THE LESSIMPORTANT LOMBARD RATE WHICH WAS HELD AT 675 THE LOMBARD RATE IS A PENALTY BORROWING FACILITY AND SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE DECISION TO LEAVE THE REPO RATE UNCHANGED ILLUSTRATED THE CENTRAL BANK'S CONTINUED CAUTIOUS STANCE BUNDESBANK DIRECTORATE MEMBER OTMAR ISSING SAID IN AN INTERVIEW MR ISSING THE BUNDESBANK'S CHIEF ECONOMIST EXPLAINED THAT THE CENTRAL BANK COUNCIL WAS ENCOURAGED BY THE FIRM MARK AND BY A SLOWING IN GERMAN INFLATION WHICH EASED TO A 35 ANNUAL RATE IN JANUARY FROM 37 IN DECEMBER HOWEVER HE SAID THE COUNCIL CONTINUED TO BE CONCERNED ABOUT THE RATE OF MONEYSUPPLY GROWTH IN GERMANY BUT SINCE WE LAST REDUCED INTEREST RATES IN OCTOBER WE THOUGHT THAT CONSIDERING ALL FACTORS IT WAS POSSIBLE TO EASE POLICY ESPECIALLY AS INFLATION IS SLOWING MR ISSING SAID IT ISN'T NEW THAT LOWER CENTRAL BANK INTEREST RATES ARE BETTER SUITED TO A WEAK ECONOMIC SITUATION 9402180118 940218 BANKS' ALLIANCE HELPS SERVICE PROFITS ROYAL BANK OF SCOTLAND BANK OF SANTANDER TRADE IDEAS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL SANTANDER SPAIN COPYING ANOTHER COMPANY'S BEST IDEAS ISN'T SOMETHING MOST EXECUTIVES BOAST ABOUT MANAGERS OF ROYAL BANK OF SCOTLAND AND BANCO SANTANDER ARE PROUD OF DOING JUST THAT LAST YEAR ACTING ON A TIP FROM ROYAL BANK SANTANDER PROFITED BY INVESTING HEAVILY IN SPANISH BONDS JUST BEFORE A SERIES OF PESETA DEVALUATIONS LED TO INTERESTRATE CUTS AND A SHARP RISE IN BOND PRICES AT ABOUT THE SAME TIME ROYAL BANK TAKING A LEAF OUT OF SANTANDER'S BOOK WAS CUTTING STAFF IN ITS BRANCHES AND SETTING SALES TARGETS FOR ITS EMPLOYEES WE'RE GETTING IDEAS FROM EACH OTHER ALL THE TIME SAYS GEORGE MATHEWSON THE GROUP CHIEF EXECUTIVE OF ROYAL BANK WHICH FIVEANDAHALF YEARS AGO SIGNED A WIDERANGING COOPERATION AGREEMENT WITH BANCO SANTANDER THIS IS MORE THAN JUST AN ALLIANCE CONCURS SANTANDER CHAIRMAN EMILIO BOTIN WE'RE TAKING ADVANTAGE OF THE SYNERGIES BETWEEN TWO BANKS AS INTERNATIONAL BARRIERS TO BUSINESS COME DOWN THE ALLIANCE BETWEEN SANTANDER AND ROYAL BANK SPAIN'S FOURTHLARGEST BANK AND BRITAIN'S SIXTHLARGEST HAS BECOME A PARAGON OF CROSSBORDER COOPERATION WHILE OTHER BANKS AND COMPANIES HAVE SIMILAR TIEUPS MANY FALTER FOR LACK OF CLEAR BUSINESS PLANS OR RUN AFOUL OF CULTURAL DIFFERENCES AND COMMERCIAL RIVALRIES THE PARTNERSHIP BETWEEN ROYAL BANK AND SANTANDER BY CONTRAST IS A SUCCESS STORY OF DIALOGUE CANDOR AND MUTUAL RESPECT WE TRUST EACH OTHER SAYS JUAN RODRIGUEZ INCIARTE SANTANDER'S EXECUTIVE VICE PRESIDENT IN CHARGE OF RETAIL BANKING WHO SKIS AND PLAYS GOLF WITH MR MATHEWSON THE RELATIONSHIP ECHOES ROYAL BANK'S CHAIRMAN LORD YOUNGER OF PRESTWICK IS LITERALLY WARMING ALL THE TIME THANKS TO THEIR ALLIANCE BOTH BANKS HAVE INTRODUCED NEW OPERATING METHODS AND PRODUCTS IMPROVING SERVICE TO CUSTOMERS AND ULTIMATELY PROFITS BY BUILDING ON COMPLEMENTARY SKILLS SAYS DAVID FAULKNER A LECTURER AT BRITAIN'S CRANFIELD SCHOOL OF MANAGEMENT THEY HAVE DONE THINGS TOGETHER THAT THEY MIGHT NOT HAVE DONE ALONE AND GROWN STRONGER IN THE PROCESS OUT OF 67 CROSSBORDER ALLIANCES THAT HE ANALYZED IN A RECENT STUDY MR FAULKNER IDENTIFIED THEIR LINKUP AS ONE OF THE THREE MOST SUCCESSFUL THE OTHER TWO WERE BRITISH AUTO MANUFACTURER ROVER'S LINKUP WITH HONDA NOW PAST HISTORY AS A RESULT OF ROVER'S ACQUISITION BY GERMANY'S BMW AND BRITISH COMPUTER FIRM ICL PLC'S RELATIONSHIP WITH FUJITSU LTD OF JAPAN THOUGH STILL SMALL ALONGSIDE GIANTS LIKE DEUTSCHE BANK OR BARCLAYS PLC SANTANDER AND ROYAL BANK ARE HOLDING THEIR OWN IN TODAY'S COMPETITIVE EUROPEAN BANKING MARKET HE SAYS MUTUAL ACCEPTANCE OF EACH OTHER'S INDEPENDENCE IS ONE OF THE KEYS BOTH HAVE SHAREHOLDINGS IN EACH OTHER 99 FOR SANTANDER IN ROYAL BANK AND 15 FOR ROYAL BANK IN SANTANDER BUT EACH SETS ITS OWN STRATEGY AND AGENDA LAST YEAR FOR EXAMPLE ROYAL BANK SOLD ITS CHARTERHOUSE INVESTMENT BANKING UNIT ARGUING THAT IT WAS PERIPHERAL TO ITS MAIN BUSINESS THE MOVE CONTRASTED WITH SANTANDER'S OWN STRATEGY OF BUILDING UP ITS INVESTMENTBANKING OPERATIONS AROUND BANCO SANTANDER DE NEGOCIOS BUT ROYAL BANK'S MOVE THOUGH IT RAISED SOME EYEBROWS IN SPAIN WAS ACCEPTED WITHOUT A MURMUR THE ALLIANCE WAS FORGED IN 1988 AT A TIME WHEN BOTH BANKS WERE NERVOUS ABOUT POSSIBLE TAKEOVER THREATS PLANS FOR A UNIFIED EUROPEAN MARKET WERE ALL THE RAGE AND EACH WAS WONDERING HOW TO STAY INDEPENDENT WHILE PROVIDING CUSTOMERS WITH BANKING SERVICES IN OTHER EUROPEAN COUNTRIES BOTH HAD LOOKED AT OTHER PARTNERS BUT WHEN THEIR EXECUTIVES GOT TOGETHER THEY REALIZED THEY WERE ON THE SAME WAVELENGTH SIX MONTHS OF NEGOTIATIONS WERE CONCLUDED BY MR MATHEWSON AND MR INCIARTE IN SEPTEMBER 1988 IN A STATEMENT SOON AFTERWARD MR BOTIN EMPHASIZED THE TWO BANKS' STRIKING SIMILARITIES AND COMMON CULTURE WHICH EMPHASIZES PROFITABILITY AND EFFICIENCY BOTH HAD VENERABLE PEDIGREES STRETCHING BACK IN ROYAL BANK'S CASE TO 1727 AND IN SANTANDER'S TO 1857 BOTH WERE NORTHERN BANKS WITH BASES AWAY FROM THE CAPITAL CITY WHICH THEY CLAIM GIVES THEM A SPECIAL CHARACTER AND BUSINESS PERSPECTIVE TO BE SURE THERE WERE ALSO DIFFERENCES STAFF AT THE SCOTTISH BANK WERE SOMETIMES UNSETTLED BY THEIR SPANISH PARTNERS' APPARENT CASUALNESS ABOUT TRAVEL SCHEDULES AND ANSWERING LETTERS THE PATRIARCHAL MANNER IN WHICH MR BOTIN WHO WITH HIS FAMILY CONTROLS AT LEAST 35 OF SANTANDER DOMINATED THE SPANISH BANK CONTRASTED WITH ROYAL BANK'S MORE COLLEGIATE STYLE WHILE MR BOTIN AND HIS COLLEAGUES SPOKE GOOD ENGLISH THE ROYAL BANK TEAM NEEDED INTERPRETERS AT MEETINGS IN SPAIN THANKS TO THE FRIENDLY RELATIONS FORGED IN NEGOTIATIONS HOWEVER THE PARTNERSHIP QUICKLY BORE FRUIT ARRANGEMENTS WERE PUT IN PLACE FOR CLIENTS OF ONE BANK TO BE GIVEN SPECIAL TREATMENT IN THE OTHER'S HOME MARKET THE TWO SET UP A JOINT SUBSIDIARY IN GIBRALTAR UNDER ROYAL BANK MANAGEMENT AND THEY TOOK STAKES IN PORTUGAL'S BANCO DE COMERCIO E INDUSTRIA WITH SANTANDER AS THE DOMINANT PARTNER ALONGSIDE ROYAL BANK WITH A MINORITY HOLDING IN 1989 SANTANDER STUNNED COMPETITORS BY BECOMING THE FIRST BIG SPANISH BANK TO LAUNCH A HIGHINTEREST CHECKING ACCOUNT BEFORE DOING SO IT HAD TAKEN CARE TO STUDY ROYAL BANK'S EXPERIENCE IN THAT AREA IN 1992 ROYAL BANK EMBARKED ON A PROJECT TO STREAMLINE ITS UK BRANCH NETWORK AND IMPROVE PROFITABILITY AND SERVICE MANY PROPOSALS WERE BASED ON A STUDY OF HOW SANTANDER BRANCHES WERE RUN THE ALLIANCE ALSO HELPED TO DISCOURAGE PLANS THAT PROBABLY WOULDN'T HAVE PROVED PROFITABLE BEFORE SIGNING UP WITH ROYAL BANK SANTANDER HAD EMBARKED ON A STRATEGY OF BUYING SMALLER BANKS IN OTHER EUROPEAN COUNTRIES THE SCOTS HOWEVER KEPT REJECTING PROPOSALS TO BUY A JOINT SUBSIDIARY IN FRANCE AS TOO EXPENSIVE SANTANDER GAVE UP AND MR BOTIN HAS NO REGRETS OWNING A SMALL BANK IN A FOREIGN COUNTRY OFTEN ISN'T COMMERCIALLY VIABLE AS SANTANDER FOUND OUT IN BELGIUM WHERE IT CLOSED ITS OPERATION AND ITALY WHERE IT SOLD OUT BUYING A BANK IN FRANCE WOULD HAVE BEEN TOO EXPENSIVE HE ADMITS INSTEAD THE PARTNERS TACKLED THE CHALLENGE OF PROVIDING CROSSBORDER BANKING SERVICES IN A TOTALLY DIFFERENT MANNER USING COMPUTER TECHNOLOGY TO LINK THEIR BRANCH NETWORKS THEY SET OUT TO CREATE WHAT THEY CALLED SEAMLESS BANKING UNDER WHICH CUSTOMERS WOULD BE ABLE TO EFFECT INSTANTANEOUS PAYMENTS FROM THEIR ACCOUNT AT ONE BANK TO A BANK ABROAD THE RESULT WAS THEIR INTERBANK ONLINE SYSTEM OR IBOS CURRENTLY THE ALLIANCE'S MOST HIGHPROFILE PRODUCT LAUNCHED IN 1991 IBOS INITIALLY LINKED 1350 SANTANDER BRANCHES IN SPAIN TO SOME 800 ROYAL BANK BRANCHES IN BRITAIN SINCE THEN IT HAS BEEN EXTENDED TO INCLUDE CREDIT COMMERCIAL DE FRANCE AND BCI IN PORTUGAL IN THE NEXT FEW MONTHS BANKS IN BELGIUM ITALY AND THE US ARE EXPECTED TO JOIN THE SYSTEM IN PARTNERSHIP WITH ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP OF THE US ROYAL BANK AND SANTANDER ARE NOW MARKETING IBOS WORLDWIDE BY 2000 EXECUTIVES HOPE COMMISSIONS FROM TRANSACTIONS THROUGH IBOS COULD ACCOUNT FOR BETWEEN 5 AND 10 OF THE TWO BANKS' PRETAX INCOME THANKS TO THE ALLIANCE ROYAL BANK OFFICIALS SAY THE VOLUME OF THEIR PAYMENTS BUSINESS TO SPAIN HAS RISEN 50 WITH MORE THAN HALF OF THE GAIN COMING FROM NEW CLIENTS OF THE CUSTOMERS THAT USE IBOS 25 HAVE OPENED ACCOUNTS WITH ROYAL BANK SPECIFICALLY FOR THAT PURPOSE ONE OF THE NEXT MOVES PREDICTS MR MATHEWSON MAY BE TO BRING THE TWO BANKS' TREASURY DEPARTMENTS CLOSER TOGETHER SO AS TO TAKE MAXIMUM ADVANTAGE OF THE MARKET SAVVY OF EACH SANTANDER MEANWHILE IS WONDERING HOW IT CAN IMITATE DIRECT LINE SANTANDER HAS MORE OF A TRADING CULTURE SAYS MR MATHEWSON WE ARE MORE CUSTOMERORIENTED WE HAVE TO LEARN FROM SANTANDER ON THE TRADING SIDE THEY HAVE TO DEVELOP THEIR MARKET AND EDUCATE THEIR CLIENTS SO WHAT IS THE SECRET OF THE ALLIANCE YOU HAVE GOT TO KNOW EACH OTHER AT THE TOP AND YOU HAVE GOT TO BE AS OPEN AS POSSIBLE SAYS MR MATHEWSON A DRY FORMER RUGBYFOOTBALL PLAYER WHO CAME TO BANKING FROM A POST AT THE SCOTTISH DEVELOPMENT OFFICE WHAT WE HAVE BEEN DOING IS BUILDING AN UNDERSTANDING BECAUSE THE TWO AREN'T COMPETING DIRECTLY WITH EACH OTHER ON THEIR HOME MARKETS ADDS MR INCIARTE IDEAS HAVE A BETTER CHANCE OF BEING DISCUSSED IF ROYAL BANK ASKS SANTANDER A QUESTION HE SAYS THEY KNOW WE WILL TELL THEM EXACTLY THE TRUTH THE VALUE OF THAT INFORMATION IS TREMENDOUS 9402180117 940218 CHEMICAL BANKING CLIENTS FACE ATM SYSTEMS GLITCH NEW YORK CLIENTS OF CHEMICAL BANKING CORP WHOSE ADVERTISING CAMPAIGN SAYS EXPECT MORE FROM US AT LEAST EXPECT THEIR MONEY BUT FOR THE PAST TWO DAYS THOUSANDS OF CLIENTS IN NEW YORK CITY COULDN'T GET AT THEIR FUNDS THROUGH AUTOMATIC TELLER MACHINES BECAUSE OF A COMPUTER GLITCH THE GLITCH INCORRECTLY DOUBLED THE AMOUNT OF WITHDRAWALS OR TRANSFERS FOR ANY TRANSACTION MADE ON WEDNESDAY SO THAT A 100 WITHDRAWAL WOULD SHOW UP AS A 200 WITHDRAWAL UNFORTUNATELY FOR CUSTOMERS IT DID NOT DOUBLE DEPOSITS THE BANK SAID THE PROBLEM RESULTED FROM A ROUTINE SYSTEMS ADJUSTMENT WHILE CUSTOMERS VISITING TELLERS HAD NO PROBLEM WITHDRAWING FUNDS CHEMICAL SAID IT DIDN'T EXPECT TO HAVE THE COMPUTER GLITCH COMPLETELY SOLVED UNTIL EARLY TODAY A CHEMICAL SPOKESMAN SAID THAT TENS OF THOUSANDS OF ACCOUNTS WERE AFFECTED ALTHOUGH THE ACTUAL NUMBER OF PEOPLE WHO TRIED AND FAILED TO OBTAIN MONEY FROM ATMS WAS PROBABLY MUCH SMALLER THAN THAT THE BANK SAID IT WOULD TRY TO ENSURE THAT NO CHECKS BOUNCED BECAUSE OF ITS MISTAKE WE JUST MESSED IT UP SAID THE CHEMICAL SPOKESMAN WE TAKE FULL RESPONSIBILITY FOR THE MISTAKE 9402180116 940218 TECHNOLOGY SUIT AGAINST NINTENDO BY NATIONAL SEMI UNIT IS DISMISSED BY JUDGE REDMOND WASH A FEDERAL JUDGE HAS DISMISSED A PATENTINFRINGEMENT LAWSUIT BROUGHT AGAINST NINTENDO CO BY A UNIT OF NATIONAL SEMICONDUCTOR CORP SEPARATELY NINTENDO'S US UNIT BASED HERE SAID 60 COMPANIES THAT MAKE SOFTWARE FOR ITS VIDEOGAME SYSTEMS JOINED IT IN ASKING THE US TRADE REPRESENTATIVE TO TAKE ACTION AGAINST CHINA TAIWAN PANAMA VENEZUELA ARGENTINA AND PARAGUAY FOR FAILING TO STOP THE COUNTERFEITING OF VIDEOGAME CARTRIDGES THE SUIT WAS FILED IN US DISTRICT COURT IN SEATTLE AGAINST JAPANBASED NINTENDO IN 1992 BY FAIRCHILD SEMICONDUCTOR WHICH WAS ACQUIRED BY NATIONAL SEMI IN 1987 THE SUIT ALLEGED THAT NINTENDO'S SUPER NINTENDO ENTERTAINMENT SYSTEM INFRINGES A 1978 FAIRCHILD PATENT THAT COVERS HOW A CARTRIDGE LOCKS INTO A VIDEOGAME SYSTEM US DISTRICT JUDGE JOHN COUGHENOUR CONCLUDED THAT NO REASONABLE JURY COULD FIND THAT THE TWO COMPANIES' TECHNOLOGIES WERE SIMILAR ENOUGH TO SUPPORT A CLAIM OF PATENT INFRINGEMENT NATIONAL SEMI BASED IN SANTA CLARA CALIF HAD NO IMMEDIATE COMMENT IN THE TRADE ACTION NINTENDO CHARGED THAT THE SIX COUNTRIES HAVEN'T ADEQUATELY PROTECTED US COPYRIGHTS AND TRADEMARKS AGAINST COUNTERFEITERS NINTENDO ASSERTED THAT COUNTERFEITING OF VIDEO GAMES IN CHINA HAS REACHED CRISIS PROPORTIONS WITH MILLIONS OF COUNTERFEIT PRODUCTS PRODUCED BY GOVERNMENTCONTROLLED OR STATEOWNED ENTERPRISES IT URGED THAT CHINA BE DESIGNATED A PRIORITY FOREIGN COUNTRY UNDER THE SPECIAL 301 PROVISION OF US TRADE LAW NINTENDO ALSO ASKED THAT TAIWAN BE KEPT ON A PRIORITY WATCH LIST FOR NOT STOPPING COUNTERFEIT GAME EXPORTS IT SAID PANAMA VENEZUELA ARGENTINA AND PARAGUAY SHOULD BE PLACED ON A WATCH LIST FOR FAILING TO PROTECT TRADEMARKS AND TO STOP COUNTERFEITING 9402180115 940218 CHRYSLER IS EXPECTED TO UNVEIL IN MARCH CHEROKEE OUTPUT PLANS DETROIT CHRYSLER CORP IS EXPECTED TO ANNOUNCE NEXT MONTH WHETHER IT WILL INCREASE PRODUCTION OF ITS JEEP GRAND CHEROKEE BY EXPANDING THE DETROIT ASSEMBLY PLANT ADDING A THIRD SHIFT OR BOTH INVENTORIES OF THE HIGHLY PROFITABLE GRAND CHEROKEE SPORTUTILITY VEHICLE ARE AT A 29DAY SUPPLY WELL BELOW THE 6065 DAY SUPPLY CONSIDERED IDEAL SAID WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION FORD MOTOR CO AND GENERAL MOTORS CORP HAVE ALREADY ANNOUNCED PLANS TO BOOST OUTPUT OF THEIR SPORTUTILITY VEHICLES TO MEET INCREASING DEMAND GM SAID IT WILL STEP UP PRODUCTION IN MARCH OF ITS GEO PRIZM MODELS BECAUSE OF INCREASED DEMAND FOR THE SMALL SEDANS PRODUCTION OF THE CARS BUILT AT NEW UNITED MOTORS MANUFACTURING INC IN FREMONT CALIF A JOINT VENTURE BETWEEN GM AND TOYOTA MOTOR CORP WILL RISE 60 TO 11377 CARS IN MARCH FROM 7132 PRIZMS BUILT AT THE ASSEMBLY PLANT LAST YEAR GM FORD AND CHRYSLER HAVE SCHEDULED OVERTIME AT SEVERAL ASSEMBLY PLANTS IN THE US AND CANADA ALTOGETHER THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 258311 CARS AND TRUCKS THIS WEEK UP 23 FROM THE 209814 VEHICLES BUILT IN THE YEAREARLIER WEEK 9402180114 940218 TECHNOLOGY LOTUS AT&T ARE NEGOTIATING VENTURE FOR SERVICES BASED ON NOTES SOFTWARE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LOTUS DEVELOPMENT CORP AND AMERICAN TELEPHONE & TELEGRAPH CO ARE NEGOTIATING A JOINT VENTURE TO BRING COMMUNICATIONS SERVICES BASED ON LOTUS SOFTWARE TO A MASS MARKET INDUSTRY INSIDERS SAID THE PROPOSED VENTURE COULD MAKE ONLINE COMPUTER SERVICES SUCH AS ELECTRONIC NEWSLETTER PUBLISHING OR REALESTATE LISTINGS EASIER TO RUN AND MORE WIDELY AVAILABLE TO BOTH COMPANIES AND CONSUMERS ANALYSTS SAID IT WOULD BE BASED ON LOTUS'S NOTES SOFTWARE RUNNING ON COMPUTERS IN THE AT&T COMMUNICATIONS NETWORK MOST PEOPLE USING NOTES TODAY ARE INSTEAD LINKED TO OFFICECOMPUTER NETWORKS AN ANALYST'S REPORT OF THE DISCUSSIONS YESTERDAY SENT LOTUS STOCK SOARING NEARLY 11 ON MORE THAN EIGHT MILLION SHARES TRADED CLOSING AT 6650 UP 650 IN NASDAQ STOCK MARKET TRADING THIS COULD BE A TREMENDOUSLY SIGNIFICANT EVENT FOR PEOPLE WHO WANT TO GET OR SHARE INFORMATION OR TRANSACT BUSINESS ELECTRONICALLY SAYS DAVID MARSHAK OF SEYBOLD GROUP A MARKETRESEARCH FIRM IN BOSTON YOU CAN DO ALL THESE THINGS TODAY WITHOUT NOTES HE ADDS BUT MAKING NOTES WIDELY AVAILABLE TO COMPANIES AND CONSUMERS ON THE AT&T NETWORK TAKES AWAY THE NEED TO DO THE PLUMBING YOURSELF TERENCE M QUINN AN ANALYST AT FURMAN SELZ WHO DISCLOSED WHAT HE SAID WERE PROPOSED TERMS SAID THAT FINANCIAL IMPLICATIONS OF THIS VENTURE TO LOTUS ARE SUBSTANTIAL NEW REVENUE WOULD FLOW IN FROM THE USE OF NOTES SOFTWARE IN THE NETWORK AND FROM THE SALE OF INEXPENSIVE DESKTOP NOTES PACKAGES DESIGNED TO LINK WITH THE NEW SERVICES HE SAID HE RAISED HIS 1995 PROFIT ESTIMATE FOR LOTUS BY 10 TO 305 A SHARE A SPOKESWOMAN FOR LOTUS BASED IN CAMBRIDGE MASS WOULDN'T COMMENT ON MR QUINN'S ASSERTIONS BUT CAUTIONED THAT EXTRAPOLATING THE FINANCIAL IMPACT OF ANY SUCH PACT WOULD BE EXTREMELY RISKY IN NEW YORK AN AT&T SPOKESMAN ALSO DECLINED TO COMMENT AND THE INDUSTRY INSIDERS INCLUDING PEOPLE CLOSE TO BOTH SIDES OF THE DISCUSSION EMPHASIZED THAT NO AGREEMENT HAS YET BEEN SIGNED THE NEW SERVICES WHICH WOULD BE OFFERED OVER PHONE LINES HANDHELD WIRELESS DEVICES OR THE VAST INTERNET NETWORK WOULD BE BUILT AROUND NOTES SOFTWARE NOTES IS A SHARED COMMUNICATIONS AND DATABASE PROGRAM THAT LETS USERS SEND AND RECEIVE MESSAGES CARRY ON DISCUSSIONS ACROSS A COMPUTER NETWORK OR GET ACCESS TO FREQUENTLY CHANGING INFORMATION SUCH AS CUSTOMTAILORED NEWSWIRES OR CLASSIFIED ADVERTISING COMPLETE WITH COLOR PICTURES OR EVEN SHORT VIDEO CLIPS THE AT&TLOTUS VENTURE IF IT MATERIALIZES WOULD LIKELY BE USED BY BUSINESSES INITIALLY A COMPANY COULD USE THE SERVICE TO KEEP A FARFLUNG SALES FORCE UPTODATE WITH INFORMATION FROM ITS HEADQUARTERS FOR EXAMPLE WHILE ANOTHER COMPANY COULD OFFER AN ONLINE CATALOG IT WOULD MAKE AVAILABLE TO OUTSIDERS WHO DIALED IN WITH HOME COMPUTERS THE TALKS WERE FIRST REPORTED IN THE FEB 14 ISSUE OF INFOWORLD A TRADE WEEKLY WHICH SAID AN AGREEMENT COULD BE ANNOUNCED BY THE TWO COMPANIES WITHIN AS LITTLE AS A MONTH WHAT APPARENTLY SPARKED THE RUNUP IN LOTUS SHARES YESTERDAY WAS MR QUINN'S REPORT ON THE FINANCIAL IMPLICATIONS OF A POSSIBLE VENTURE INCLUDING THE NOTION THAT IT COULD BE STRUCTURED SO THAT LOTUS GETS A PERTRANSACTION OR TRAFFICBASED ROYALTY IN THIS FORMULA LOTUS MIGHT GET A FRACTION OF THE REVENUE FROM TRAFFIC GENERATED BY A MAILORDER FIRM USING THE AT&TNOTES SERVICE TO PROVIDE ELECTRONIC CATALOGS TO CUSTOMERS AND CONDUCT BUSINESS WITH THEM ONLINE OTHER ANALYSTS VIEWED THE POSSIBLE TRANSACTION AS EXTREMELY POSITIVE FOR LOTUS RICK SHERLUND OF GOLDMAN SACHS & CO SAID THAT IT IS PREMATURE TO ASSESS THE EARNINGS IMPLICATIONS OF A DEAL THAT HASN'T BEEN REACHED AND TERMS THAT HAVEN'T BEEN MADE PUBLIC HE ALSO SAID THAT IF LOTUS IS PAID BY THE DRINK INSTEAD OF UPFRONT THAT WOULD PROVIDE A NICE REVENUE STREAM BUT IT ALSO IMPLIES THAT THE REVENUES FROM SUCH AN AGREEMENT WOULD RAMP UP SLOWLY IN THE FIRST YEAR OR TWO AS THE SERVICES GOT UNDER WAY DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS SAID THAT LOTUS CHIEF EXECUTIVE JIM P MANZI HAS ALWAYS WANTED TO BUILD A RECURRING REVENUE STREAM IN ADDITION TO TRADITIONAL SOFTWARE LICENSING REVENUE IF HE CAN DELIVER A RECURRING REVENUE STREAM ON THE INFORMATION HIGHWAY IT WILL COMPLETELY CHANGE THE WAY WALL STREET LOOKS AT AND VALUES LOTUS UNTIL TERMS OF THE TRANSACTION ARE DISCLOSED HE SAID THAT'S THE BIG WHATIF IF THIS TURNS OUT TO BE A SOFTWARELICENSING DEAL THAT'S STILL GREAT FOR LOTUS BUT RECURRING REVENUE WOULD BE A BIG WIN 9402180113 940218 TECHNOLOGY PHYSICIANS' PEER REVIEW OF FEES BACKED BY FTC WASHINGTON THE FEDERAL TRADE COMMISSION SAID A PROPOSED PROGRAM FOR PEER REVIEW OF PHYSICIAN FEES WOULDN'T VIOLATE FEDERAL ANTITRUST LAWS AND COULD HELP CONSUMERS IN A LETTER TO THE AMERICAN MEDICAL ASSOCIATION AND THE CHICAGO MEDICAL SOCIETY WHICH JOINTLY PROPOSED THE PROGRAM THE FTC SAID ADVISORY PEER REVIEW CAN GIVE PATIENTS AND PAYERS SUCH AS HEALTHINSURANCE COMPANIES INFORMATION ABOUT THE BASIS FOR A FEE AND AN INFORMED OPINION ABOUT ITS REASONABLENESS AND HELP THEM DECIDE WHETHER TO PAY A DISPUTED BILL OR TO CONTINUE TO PATRONIZE A PARTICULAR DOCTOR THE AGENCY SAID IT HAS RECOGNIZED THE BENEFITS OF PEERREVIEW PROGRAMS IN THE PAST THIS PROGRAM WAS UNIQUE IN THAT PHYSICIANS WOULD HAVE TO PARTICIPATE IN THE PLAN IN ORDER TO OBTAIN MEMBERSHIP IN THE CHICAGO MEDICAL SOCIETY PHYSICIANS COULD BE DISCIPLINED FOR CERTAIN FEE PRACTICES AND THE SOCIETY COULD PUBLICIZE THE NAMES OF PHYSICIANS IT HAD DISCIPLINED THE TWO MEDICAL GROUPS SOUGHT AN ADVISORY OPINION FROM THE FTC ON THE LEGALITY OF THE PROGRAM WHICH WOULD OPERATE THROUGH TWO COMMITTEES THE PATIENT GRIEVANCE PANEL WOULD ISSUE NONBINDING OPINIONS ON PATIENT COMPLAINTS ABOUT A DOCTOR'S BEHAVIOR OR FEES THE PROFESSIONAL DISCIPLINARY COMMITTEE COULD PUNISH PHYSICIAN BEHAVIOR RELATED TO FRAUD AND OTHER MISCONDUCT THE FTC ADDED HOWEVER THAT DISCIPLINARY ACTION BASED SOLELY ON THE BASIS OF FEE LEVELS WHERE THERE HAS BEEN NO FRAUD OR OTHER ABUSE COULD VIOLATE THE ANTITRUST LAWS AND INJURE CONSUMERS 9402180112 940218 MICROSOFT'S TIGER VIDEO SERVER BLAZES NEW TRAIL BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH TIGERS FREQUENTLY KILL LARGER ANIMALS MICROSOFT CORP IS BETTING THAT A PROTOTYPE PROGRAM IT HAS CODENAMED TIGER CAN PERFORM A SIMILAR FEAT IN ONE OF THE HOTTEST NEW MARKETS IN THE COMPUTER INDUSTRY THE COMPANY SAYS TIGER WHICH WAS DEMONSTRATED RECENTLY IN A LOCKED LABORATORY HERE CAN DELIVER COMPUTERIZED VIDEO AND INTERACTIVE MULTIMEDIA PROGRAMMING FOR ONETENTH THE COST OF RIVAL VIDEOSERVER TECHNOLOGIES BEING DEVELOPED BY SUCH COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP DIGITAL EQUIPMENT CORP HEWLETTPACKARD CO ORACLE CORP AND SILICON GRAPHICS CORP TIGER'S TRICK IS USING PERSONAL COMPUTER HARDWARE INSTEAD OF MAINFRAMES OR SUPERCOMPUTERS MICROSOFT CONTENDS THAT SERVERS OF ALMOST ANY SIZE CAN BE ASSEMBLED BY STRINGING TOGETHER THE MOTHERBOARDS THAT PERFORM THE BASIC NUMBERCRUNCHING IN PCS WHEN INFORMED OF MICROSOFT'S APPROACH SEVERAL COMPETITORS RIDICULED THE IDEA THAT PC HARDWARE COULD PROVIDE THE COMMUNICATIONS AND PROCESSING POWER TO SAY ENABLE THOUSANDS OF CONSUMERS TO ORDER UP MOVIES FROM HOME SIMULTANEOUSLY OR PERFORM MORE INTERACTIVE FUNCTIONS LIKE ELECTRONIC SHOPPING THEY ALSO QUESTIONED WHETHER MICROSOFT'S APPROACH COULD PRODUCE THE PROMISED COST SAVINGS THE THEORY HERE IS THAT PCS ARE THE CHEAPEST THING OUT THERE BUT THAT IS A CORRUPT THEORY SAID JAMES BARTON VICE PRESIDENT AND GENERAL MANAGER OF SILICON GRAPHICS' MEDIA SYSTEMS DIVISION THEY CAN'T DO IT ADDED LAWRENCE ELLISON CHIEF EXECUTIVE OF ORACLE WHICH HAS DEVELOPED MEDIASERVER SOFTWARE THAT RUNS ON A SUPERCOMPUTER IT'S IMPOSSIBLE TO BUILD A CHEAPER SYSTEM THAN WE HAVE BUT MANY POTENTIAL BUSINESS USERS OF MULTIMEDIA PROGRAMMING WON'T NEED TO REACH THOUSANDS OF CUSTOMERS SIMULTANEOUSLY A SMALL ELECTRONICSSTORE CHAIN FOR INSTANCE MAY WANT TO OWN A VIDEO SERVER THAT CAN RESPOND TO SCORES OF CUSTOMER CALLS EACH DAY FOR A VIDEO TOUR OF ITS WARES RATHER THAN RENT SPACE ON A HUGE VIDEO SERVER OWNED BY A TELEPHONE OR CABLE COMPANY LOCAL SERVERS COULD BE LESS EXPENSIVE AND GIVE MORE CONTROL OVER UPDATING INFORMATION AND CHARGING FOR IT AND THEY COULD WORK WITH INTERNAL NETWORKS INSIDE HOTELS SHOPPING MALLS AND AIRLINERS MICROSOFT ISN'T THE ONLY COMPANY TAKING THE CONTRARIAN VIEW NOVELL INC AND A FEW OTHER SOFTWARE COMPANIES AGREE THAT PC HARDWARE COULD PLAY A MAJOR ROLE IN SMALL LOWCOST VIDEO SERVERS THAT WOULD OPEN UP THE BALLYHOOED INFORMATION HIGHWAY IN MYRIAD WAYS FOR SMALL BUSINESSES AND PUBLIC INSTITUTIONS THAT'S A LEGITIMATE DRUM TO BEAT SAID JIM LONG CHIEF EXECUTIVE OF STARLIGHT NETWORKS INC A MOUNTAIN VIEW CALIF STARTUP PLYING THE VIDEOSERVER FIELD DATAQUEST INC A MARKET RESEARCH FIRM IN SAN JOSE CALIF THIS WEEK ESTIMATED THAT THE VIDEOSERVER BUSINESS WILL SURGE TO 51 BILLION BY 1997 FROM JUST 16 MILLION IN 1993 UNDERSCORING THE UNCERTAINTY ABOUT THE INFANT MARKET SMABY GROUP A MINNEAPOLIS CONSULTING FIRM IN JANUARY PREDICTED THE VIDEOSERVER MARKET MAY REACH ONLY 1 BILLION BY 1998 NOVELL NO 1 IN NETWORK SOFTWARE STARLIGHT AND OTHERS ALREADY SELL SOFTWARE THAT ALLOWS PCS TO SERVE UP VIDEO TO MULTIPLE COMPUTER USERS ON CORPORATE NETWORKS THEY ARE ALSO WORKING ON SOLVING THE PROBLEMS ASSOCIATED WITH ADAPTING THOSE PRODUCTS FOR THE HOME SUCH AS HOW TO GUARANTEE UNINTERRUPTED SERVICE WHEN HUNDREDS OF PEOPLE WANT THE SAME MOVIE ON SATURDAY NIGHT WE DON'T BELIEVE THOSE PROBLEMS ARE UNSOLVABLE SAYS PREM UPPALURU DIRECTOR OF ENGINEERING AND PRODUCT MARKETING IN THE NOVELL MULTIMEDIA DIVISION WE BELIEVE THAT PC HARDWARE WILL END UP ULTIMATELY COSTING MUCH LESS THAN THE BIG IRON MICROSOFT WHICH PLANS TO SPEND 100 MILLION A YEAR ON INFORMATION HIGHWAY OPPORTUNITIES HASN'T PREVIOUSLY GIVEN OUT MANY CLUES ABOUT ITS STRATEGY IN THE SERVER MARKET COMPANY EXECUTIVES INITIALLY INSISTED THAT A REPORTER NOT DISCLOSE THE HARDWARE APPROACH USED BY TIGER AS A CONDITION OF DEMONSTRATING THE PROGRAM BUT THEY LATER RELENTED MICROSOFT HAS AN INTEREST IN COUNTERING THE PERCEPTION THAT IT IS LAGGING BEHIND COMPETITORS IN DEVELOPING SERVER PRODUCTS AND PARTNERSHIPS I CAN GIVE YOU 20 REASONS WHY OUR TECHNOLOGY IS BETTER SAYS WILLIAM GATES MICROSOFT'S CHIEF EXECUTIVE IN ESSENCE TIGER IS SOFTWARE THAT ACTS AS A FILE SYSTEM FOR MULTIMEDIA INFORMATION INCLUDING GRAPHICS AND SOUND AS WELL AS VIDEO IT OPERATES IN CONJUNCTION WITH MICROSOFT'S WINDOWS NT OPERATING SYSTEM AND REQUIRES SOME ADVANCED NETWORKING HARDWARE IN ADDITION TO A PERSONAL COMPUTER TIGER MANAGES FUNCTIONS SUCH AS PARCELING OUT SNIPPETS OF VIDEO TO ARRAYS OF DISK DRIVES AND REASSEMBLING THEM INTO COHERENT STREAMS IN THE DEMONSTRATION PCS BASED ON INTEL CORP 486 MICROPROCESSORS WERE EACH ABLE TO DELIVER DIGITIZED FILM TO DOZENS OF TVS SIMULTANEOUSLY TIGER'S CAPACITY IS EXPECTED TO INCREASE SHARPLY WITH FASTER MICROPROCESSORS AND IMPROVEMENTS IN THE STANDARD BUS CIRCUITRY THAT HANDLES INTERNAL COMMUNICATIONS IN PCS AS LARGER SERVERS ARE ASSEMBLED FROM PC BOARDS THE TECHNOLOGY IS DESIGNED TO COPE WITH PROBLEMS SUCH AS THE POTENTIAL FAILURE OF DISK DRIVES AND OTHER COMPONENTS OUR SOLUTION IS VERY VERY COSTEFFECTIVE AT ANY SCALE SAYS NATHAN MYHRVOLD MICROSOFT'S SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY MR MYHRVOLD WOULDN'T DISCLOSE HOW FAR MICROSOFT IS FROM COMPLETING TIGER HE ADDED THAT THE SOFTWARE IS LIKELY TO BE USED IN MARKET TRIALS THIS YEAR SOME COMPANIES SAY THEY CAN BEAT THAT MARK NOW ORACLE AND NCUBE CORP WHICH CAN RUN ORACLE'S MEDIASERVER SOFTWARE ON A PARALLEL SUPERCOMPUTER COMPOSED OF HUNDREDS OR THOUSANDS OF PROCESSING UNITS SAY THAT TOGETHER THEY CAN NOW DELIVER VIDEO AT ABOUT 1000 PER STREAM THEY EXPECT THAT FIGURE TO DROP TO BETWEEN 500 AND 600 BY THE END OF THE YEAR HEWLETTPACKARD WHICH USES CUSTOM CIRCUITRY TO TRANSFER VIDEO AT HIGH SPEED EXPECTS TO DELIVER A VIDEO SERVER THIS YEAR FOR LESS THAN 1000 PER VIDEO STREAM SAYS JIM OLSON GENERAL MANAGER IN CHARGE OF HP'S VIDEO COMMUNICATIONS UNIT MICROSOFT'S MR MYHRVOLD WOULDN'T GIVE A PRECISE VIDEOSTREAM COST FOR THE COMPANY'S PCBASED SCHEME BUT HE ESTIMATED IT WILL BE AT LEAST AN ORDER OF MAGNITUDE CHEAPER THAN OTHER HARDWARE APPROACHES SILICON GRAPHICS' MR BARTON AND OTHER SKEPTICS ARGUE THAT PERSONAL COMPUTERS AREN'T THE ONLY MACHINES BENEFITING FROM PLUMMETING PRICES FOR MICROPROCESSORS AND OTHER COMPONENTS AND HE SAYS MOST OF THE COST OF ANY TYPE OF VIDEO SERVER COMES FROM DISK DRIVES AND MEMORY CHIPS NEEDED TO STORE VAST QUANTITIES OF DIGITIZED INFORMATION WHETHER YOU ARE A PC MAKER OR IBM OR SILICON GRAPHICS YOU ARE PAYING ABOUT THE SAME AMOUNT OF MONEY FOR THOSE TWO THINGS SAYS DAVID FRANKEL A MINNEAPOLIS TECHNOLOGY CONSULTANT BUT MICROSOFT'S MR MYHRVOLD SAYS THAT THE PCBASED APPROACH CAN USE MUCH LESS COSTLY DISK DRIVES THAN LARGER SYSTEMS HE PREDICTS THAT COMPONENT COSTS WILL FALL MOST RAPIDLY IN THE HIGHVOLUME PC MARKET LOWERING THE PRICE OF SERVER HARDWARE AND WIDENING THE OPPORTUNITY TO SELL TIGER AND OTHER PROGRAMS WE ARE FAR MORE FLEXIBLE THAN ANY OTHER SYSTEM I'M AWARE OF HE SAYS 9402180111 940218 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL MARKUS WASMEIER WON GERMANY'S FIRST OLYMPIC ALPINE SKI MEDAL FOR MEN SINCE 1936 BEATING OUT DOWNHILL WINNER TOMMY MOE OF THE US BY 008 SECOND IN THE SUPER GIANT SLALOM MR WASMEIER'S TIME WAS 1 MINUTE 3253 SECONDS MR MOE WAS TIMED IN 13261 WHILE KJETIL ANDRE AAMODT OF NORWAY WAS THIRD IN 13293 ADDING A BRONZE TO THE SILVER HE WON IN THE DOWNHILL NOW MY HAPPINESS IS COMPLETE SAID MR WASMEIER 30 MR MOE BECAME THE FIRST AMERICAN MAN TO WIN MORE THAN ONE ALPINE SKIING MEDAL AT A SINGLE OLYMPICS PHIL MAHRE WON TWO MEDALS BUT AT DIFFERENT OLYMPICS A GOLD IN 1984 AND A SILVER IN 1980 SO FAR IN THESE GAMES NEITHER THE SWISS NOR THE AUSTRIANS TRADITIONALLY THE TWO STRONGEST NATIONS IN ALPINE SKIING HAS WON A SKIING MEDAL MR MOE JOINS A PAIR OF WOMEN AS AMERICA'S ONLY MULTIMEDALISTS IN ALPINE SKIING IN 1960 PENELOPE PITOU WON SILVERS IN THE DOWNHILL AND GIANT SLALOM AND ANDREA MEAD LAWRENCE WON THE SLALOM AND GIANT SLALOM AT THE 1952 GAMES RUSSIAN SVETLANA BAZHANOVA WAS THE SURPRISE WINNER IN THE WOMEN'S 3000METER SPEEDSKATING EVENT AFTER FAVORITE GUNDA NIEMANN FELL MS BAZHANOVA 21 CROSSED THE FINISH LINE IN 41743 BEATING AUSTRIAN EMESE HUNYADY BY 071 SECOND GERMANY'S CLAUDIA PECHSTEIN WON THE BRONZE IN 41834 TODD MARCHANT SCORED WITH 28 SECONDS REMAINING TO GIVE THE US A 33 TIE WITH CANADA THE US'S THIRD STRAIGHT TIE CANADA DROPPED INTO A FIRSTPLACE TIE WITH SWEDEN SWEDEN CLINCHED A QUARTERFINAL BERTH BY ROUTING FRANCE 71 SWEDEN IS 201 WHILE FRANCE HAS TIED THE US AND LOST TO CANADA SLOVAKIA IS 102 AFTER BEATING WINLESS ITALY 104 RUSSIA'S LYUBOV EGOROVA MOVED WITHIN ONE GOLD MEDAL OF THE WINTER OLYMPICS RECORD AS SHE SKIED TO AN 83SECOND VICTORY OVER MANUELA DI CENTA OF ITALY IN THE WOMEN'S 10KILOMETER CROSSCOUNTRY FREESTYLE PURSUIT THE TWO WOMEN ALSO BECAME THE FIRST TRIPLE MEDALISTS IN THESE GAMES IT WAS THE EIGHTH MEDAL IN AS MANY OLYMPIC RACES FOR MS EGOROVA WHO WON A SILVER BEHIND MS DI CENTA IN THE WOMEN'S OPENING 15K MS EGOROVA 28 HAD A 20SECOND ADVANTAGE OVER MS DI CENTA AT THE START AFTER WINNING TUESDAY'S 5K CLASSICALSTYLE THE FIRST LEG OF THE PURSUIT SHE COMPLETED THE PURSUIT IN A TOTAL TIME OF 41 MINUTES 381 SECONDS STEFANIA BELMONDO OF ITALY A FREESTYLE EXPERT FROM ITALY TOOK THE BRONZE IN THE MEN'S 10KILOMETER CLASSICALSTYLE RACE BJORN DAHLIE WON THE HOST COUNTRY'S FIFTH GOLD MEDAL IN THESE GAMES HIS COUNTRYMAN AND RIVAL 1992 TRIPLE GOLD MEDALIST VEGARD ULVANG FINISHED A DISAPPOINTING SEVENTH MR DAHLIE HELD OFF KAZAKHSTAN'S VLADIMIR SMIRNOV BY 182 SECONDS ADDING A GOLD TO HIS SILVER IN THE OPENING 30K FREESTYLE RACE MR DAHLIE'S TIME WAS 24 MINUTES 201 SECONDS THE BRONZE MEDAL WENT TO MARCO ALBARELLO OF ITALY RUSSIA'S ALEXEI URMANOV WON THE TECHNICAL PROGRAM IN MEN'S FIGURE SKATING WHILE THREE FAVORITES FALTERED INCLUDING FORMER GOLD MEDALISTS BRIAN BOITANO AND VIKTOR PETRENKO MR BOITANO OF THE US AND MR PETRENKO OF UKRAINE BOTH STUMBLED DURING THEIR PROGRAMS AND DROPPED OUT OF MEDAL CONTENTION THE REIGNING WORLD CHAMPION CANADA'S KURT BROWNING FELL HARD AND WAS EVEN FURTHER BACK IN SECOND PLACE WAS CANADIAN CHAMPION ELVIS STOJKO AND FRANCE'S PHILIPPE CANDELORO WAS THIRD GOING INTO TOMORROW NIGHT'S FREE SKATE WORTH TWOTHIRDS OF THE TOTAL SCORE US CHAMPION SCOTT DAVIS WAS FOURTH 9402180110 940218 INVADE DON'T BOMB BY WILLIAM E ODOM AIR STRIKES HAVE NEVER BROUGHT DOWN A REGIME CAUSED AN ARMY TO SURRENDER OR ENDED A CIVIL WAR WHAT THEN CAN WE EXPECT TO RESULT FROM NATO'S THREAT TO LAUNCH AIR STRIKES AGAINST SERBIAN FORCES IN BOSNIA ON MONDAY THE ONLY CERTAIN OUTCOME WILL BE THAT NATO BECOMES YET ANOTHER BELLIGERENT IN THIS MULTISIDED WAR THE OSTENSIBLE OBJECTIVE A SUSTAINED CESSATION OF HOSTILITIES IN BOSNIA IS THE LEAST LIKELY OUTCOME ARE AIR STRIKES A STRATEGIC ERROR THEY COULD BE BUT NOT FOR THE REASONS MOST WIDELY PROCLAIMED SUCH AS THE LACK OF PUBLIC SUPPORT AND THE IMPOSSIBILITY OF ACHIEVING PEACE THE TRUE REASON IS THE LACK OF A COMPELLING STRATEGIC BLUEPRINT THAT TIES TOGETHER THE BOSNIAN WAR WITH THE FUTURE OF EUROPE WITH NO SOVIET MILITARY THREAT NATO SEEMS TO HAVE NO MISSION THAT IS A DANGEROUS ILLUSION NATO FACES A MAJOR CHALLENGE IT REFUSES TO RECOGNIZE PREVENTING INSTABILITY AND CIVIL WARS IN EAST EUROPE INCLUDING FORMER YUGOSLAVIA FOR A DECADE OR SO WHILE THE FORMER COMMUNIST STATES TRANSFORM THEIR POLITICAL AND ECONOMIC SYSTEMS IF NATO REFUSES TO ACCEPT THIS MISSION EUROPE WILL REGRESS TO ITS EARLIER PATTERNS OF DIPLOMATIC AND MILITARY COMPETITION YET MR CLINTON TURNED DOWN PLEAS FROM THE LEADERS OF POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA TO BRING AT LEAST THOSE FOUR STATES UNDER THE NATO UMBRELLA THE BOSNIAN CRISIS PAINFULLY SHOWS US WHAT MORE OF EAST EUROPE MAY SOON LOOK LIKE IF NATO CONTINUES ITS STRATEGIC BLINDNESS THREE YEARS AGO A RATHER SMALL NATO FORCE COULD HAVE PREVENTED THE SPREAD OF CIVIL WAR IN THE FORMER YUGOSLAVIA TODAY IT WOULD TAKE A FAIRLY LARGE FORCE PERHAPS 300000 TROOPS AND THEY WOULD HAVE TO REMAIN THERE FOR YEARS IF NOT DECADES WHILE PEACE IS NEGOTIATED THAT MAY SEEM A LARGE PRICE TO PAY BUT WE WILL PAY A MUCH HIGHER ONE THE DISINTEGRATION OF EUROPEAN SECURITY WHEN WE CAN NO LONGER DECEIVE OURSELVES WITH TOKEN STEPS LIKE AIR STRIKES OR MERE THREATS OF AIR STRIKES BOSNIA'S FATE HAS OMINOUS INTERNATIONAL IMPLICATIONS FIRST IT HAS ALREADY CAUSED UNHEALTHY DIPLOMATIC DISPUTES AMONG GERMANY FRANCE BRITAIN GREECE TURKEY RUSSIA THE US AND OTHERS SECOND IT HAS HAD A SICKENING MORAL EFFECT AN OLD AMERICAN ALLY TURKEY SEES A CLEAR MESSAGE SLAUGHTERING MUSLIMS IS TOLERABLE BUT SLAUGHTERING CHRISTIANS AND JEWS IS NOT THE WESTERN EUROPEAN PUBLIC WATCHES THE CARNAGE ON TELEVISION AND THEN GOES OUT TO ENJOY OPULENT LIFESTYLES WILL A GENERATION RAISED ON THIS INDIFFERENCE BE ABLE TO DEFEND EUROPE AGAINST ANY THREAT THE THIRD IMPLICATION OF BOSNIA'S FATE OF CONCERN TO ITS NEIGHBORS IS THAT THE CONFLICT MAY SPREAD TO KOSOVO AND MACEDONIA AND BEYOND THE EXAMPLE OF BOSNIA COULD INSPIRE ETHNIC CLEANSING IN SLOVAKIA AND TRANSYLVANIA AGAINST HUNGARIAN MINORITIES THIS IS ONLY ONE OF THE MORE CONSPICUOUS POSSIBILITIES SOME OPPONENTS OF INTERVENTION IN FORMER YUGOSLAVIA FEAR ANOTHER VIETNAMSTYLE DEBACLE BUT THE STRATEGIC STAKES ARE DIFFERENT THIS TIME BOSNIA'S PROXIMITY TO WESTERN EUROPE ITS DISTURBING IMPACT ON EASTERN EUROPE AND ITS LINKS TO THE MIDDLE EAST CREATE CLEAR US INTERESTS LIKEWISE NATO HAS A STRONG INTEREST IN PROVIDING A SECURITY UMBRELLA FOR THOSE EASTERN EUROPEAN STATES THAT HAVE GOOD PROSPECTS OF A SUCCESSFUL POLITICAL AND ECONOMIC TRANSITION THE TWO ISSUES BOSNIA AND EXTENDING NATO ARE TIGHTLY RELATED THEY CANNOT BE HANDLED SEPARATELY YET THAT IS PRECISELY WHAT MR CLINTON'S NATIONAL SECURITY TEAM IS DOING THE ADMINISTRATION OPPOSES THE EXPANSION OF NATO WHILE AGREEING TO FECKLESS MILITARY MEASURES IN BOSNIA DEFENSE SECRETARY WILLIAM PERRY ASKED PRECISELY THE RIGHT QUESTION IF AIR STRIKES ARE THE FIRST ACT WHAT ARE THE SECOND AND THIRD ACTS SEN RICHARD LUGAR R IND HAS PROVIDED THE ANSWER NATO MUST GO OUT OF AREA TO FORMER YUGOSLAVIA AS WELL AS THE REST OF EASTERN EUROPE OR GO OUT OF BUSINESS FOR ACTS TWO AND THREE MR PERRY MUST PUSH NATO TO FACE ITS NEW MISSION ADMITTING FOUR NEW MEMBERS FROM EASTERN EUROPE AND SUPPLYING FOUR OR FIVE DIVISIONS FOR A VERY LONG STAY IN FORMER YUGOSLAVIA A NUMBER OF FACILE ARGUMENTS ARE INVOKED AGAINST THIS STRATEGY THE AMERICAN PUBLIC WILL NOT SUPPORT IT OF COURSE NOT THE PUBLIC HAS NOT BEEN PRESENTED WITH A STRATEGIC VISION THAT'S MR CLINTON'S JOB BUT NO ONE SHOULD BE QUICK TO PREJUDGE HOW THE PUBLIC WOULD FEEL ABOUT US INVOLVEMENT AFTER ALL WHO COULD HAVE PREDICTED IN 1989 THAT PRESIDENT BUSH WOULD GAIN BROAD SUPPORT FOR SENDING NINE DIVISIONS TO SAUDI ARABIA IN FORMER YUGOSLAVIA LESS THAN TWO DIVISIONS WOULD SUFFICE AS THE AMERICAN CONTRIBUTION EUROPE WOULD HAVE TO SUPPLY THE REST WE COULD NOT KEEP TROOPS IN THE BALKANS FOR TWO DECADES BUT WE'VE KEPT FORCES IN EUROPE AND EAST ASIA FOR MORE THAN 40 YEARS DEALING WITH OLD ETHNIC QUARRELS NO LESS INTRACTABLE THAN THE CONFLICT IN THE FORMER YUGOSLAVIA LET THE EUROPEANS HANDLE IT THAT'S A COPOUT WE KNOW THAT THE LARGER STATES IN WESTERN EUROPE WILL NOT ALLOW ANY SINGLE ONE OF THEIR GROUP TO RUN THE CONTINENT YET THEY CANNOT RUN IT COLLECTIVELY EUROPE HAS RUN WELL OVER THE PAST FOUR DECADES ONLY BECAUSE THE US TOOK THE INITIATIVE AT KEY POINTS PUSHING THROUGH UNPOPULAR POLICIES UNDER A COLLECTIVE BANNER EUROPE CANNOT AND WILL NOT ACT EFFECTIVELY IN BOSNIA UNLESS THE US TAKES THE LEAD AND DRAGS RELUCTANT PARTNERS ALONG ASSUMING THAT AIR STRIKES ALONE WON'T ACHIEVE ANY SIGNIFICANT RESULTS ON THE GROUND IN BOSNIA THEY COULD STILL HAVE ONE REDEEMING CONSEQUENCE WAKING THE ADMINISTRATION UP TO THE NECESSITY OF DESIGNING AND IMPLEMENTING AN EFFECTIVE NATO STRATEGY FOR EUROPE THAT IS PROBABLY TOO MUCH TO HOPE FOR BUT NOT MANY OTHER STRAWS ARE THERE TO GRASP RETIRED LT GEN ODOM IS DIRECTOR OF NATIONAL SECURITY STUDIES AT THE HUDSON INSTITUTE IN WASHINGTON 9402180109 940218 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ONE WORD THAT WAS ACCIDENTALLY PUT IN A PHILIPPINE TAX LAW IS COSTING THE GOVERNMENT BADLY NEEDED PESOS A GOVERNMENT OFFICIAL ESTIMATED THE LOST REVENUE AT 110 MILLION A YEAR A SUM THAT TAX OFFICERS SAID LOOKS HIGH BUT MIGHT BE RIGHT THE ERROR IN THE 1992 TAX LAW WHICH ONLY THIS WEEK ATTRACTED WIDE NOTICE WAS MADE IN A SECTION ON MARRIED COUPLES' TAXES INTENDED TO ALLOW A PERSONAL DEDUCTION OF 18000 PESOS 660 PER COUPLE BUT THE WORD EACH WAS SOMEHOW INSERTED ALLOWING A HUSBAND AND WIFE EACH TO CLAIM THAT SUM AND DOUBLING THEIR RELIEF THE MISTAKE CAME TO LIGHT AFTER THE GOVERNMENT CONGRESS AND OTHERS STARTED SCOURING FOR REVENUE SOURCES TO SHRINK THE PHILIPPINES' CHRONIC BUDGET DEFICIT PRESIDENT FIDEL RAMOS HAS SET UP A COMMITTEE TO FIND ALTERNATIVES TO AN OILPRICE INCREASE THAT WAS TO HAVE GENERATED 368 MILLION THIS YEAR BUT THAT HE SUSPENDED BECAUSE IT PROMPTED THREATS OF A GENERAL STRIKE CONGRESS IS AMENABLE TO CORRECTING THE INCOMETAX GOOF BUT COUPLES NOW FILING RETURNS WILL QUALIFY FOR THE WINDFALL LEBANON PLANS TO REBUILD ITS COASTAL RAILWAY LINE WHICH HAS BEEN DEVASTATED BY WARS AND DECADES OF NEGLECT THE SCENIC ROUTE IS FLANKED BY THE MEDITERRANEAN AND MOUNTAINS HUGGING THE SEACOAST THE 105MILE LINE LINKS TYRE AND SIDON IN THE SOUTH WITH BEIRUT AND THE NORTHERN CITY OF TRIPOLI MODERNIZATION COSTS WERE ESTIMATED AT 500 MILLION THE GOVERNMENT HOPES TO COMPLETE THE PROJECT BY 1997 INDONESIA REACTED COOLLY TO A US DECISION TO GIVE THE JAKARTA GOVERNMENT AN ADDITIONAL SIX MONTHS TO IMPLEMENT LABOR RULES OR LOSE PREFERENTIAL TRADE TREATMENT UNDER THE GENERALIZED SYSTEM OF PREFERENCES IT REJECTED US LINKAGE OF TRADE WITH HUMAN AND LABOR RIGHTS AND VOWED TO CHALLENGE ANY REVOCATION OF THE TRADE STATUS BUT INDICATED THE ECONOMY WOULDN'T BE HURT WITHOUT IT THE US HAD BEEN EXPECTED TO DECIDE THE ISSUE BUT ALLOWED INDONESIA THE EXTRA TIME TO END ALLEGED LABOR ABUSES AND IMPROVE WORKERS' RIGHTS SUCH AS ALLOWING LABOR UNIONS FRANCE DISSOLVED THE GOVERNMENT'S AIDSFIGHTING AGENCY AND TRANSFERRED ITS TASKS TO THE HEALTH MINISTRY STATE AUDITORS SAID THE AGENCY SET UP IN 1989 COVERED SOME EXPENSES WITH MONEY FROM A FUND FOR HEMOPHILIACS HAD TO DESTROY 400000 CONDOMS FOUND TO BE SUBSTANDARD IN A DISTRIBUTION PROGRAM AND PAID TWO OF ITS FOUR CHAIRMEN BIGGER SALARIES THAN LEGALLY ALLOWED AIDSRELATED DEATHS AVERAGE 15 A DAY IN FRANCE WHICH HAS RECORDED 32000 CASES THE MOST AMONG EUROPEAN COUNTRIES SINCE THE EPIDEMIC BEGAN IN 1981 FRANCE ALSO HAS 110000 PEOPLE INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS CHINA SCHEDULED THE NATIONAL PEOPLE'S CONGRESS TO CONVENE MARCH 10 THE XINHUA NEWS AGENCY SAID AND THE NOMINAL PARLIAMENT WILL BE URGED TO SUPPORT FASTER ECONOMIC REFORMS THE MOVE INDICATED THE RULING COMMUNIST PARTY HAS COMPLETED ITS PLANS FOR THE ANNUAL SESSION WHICH TRADITIONALLY RUBBERSTAMPS PROPOSALS PREMIER LI PENG TOLD THE CABINET THIS YEAR'S AGENDA CALLS FOR BUILDING ON RECENT SUCCESSES OF REFORMS ESPOUSED BY PARAMOUNT LEADER DENG XIAOPING DELEGATES WILL BE EXPECTED TO ACCLAIM SWEEPING NEW TAX BANKING AND CURRENCY REFORMS AND ENDORSE THE SOCALLED SOCIALIST MARKET ECONOMY OF 54 MILLION ROMANIANS ENTITLED TO FARMLAND SEIZED BY COMMUNISTS 40 YEARS AGO ONLY 740000 HAVE RECEIVED DEEDS THE AGRICULTURE MINISTRY SAID UNDER A 1990 LAW FARMERS MAY GET 25 ACRES EACH REGARDLESS OF HOW MUCH LAND THEY OWNED PRIOR TO NATIONALIZATION THE REFORM PROGRAM'S SLOW PACE AND CONDUCT HAVE CAUSED TENSIONS AND CLASHES THE MINISTRY SAID THE EFFORT HAS BEEN HINDERED BY A MONEY SHORTAGE AND INSUFFICIENT STAFF TO MEASURE PLOTS BUT IT ALSO BLAMED LOCAL OFFICIALS FOR ABUSES SUCH AS FAVORING FRIENDS OR ISSUING DEEDS THAT DON'T SPECIFY SITES MANY STATEOWNED FARMS REMAIN INTACT DESPITE PERSISTENT SINOBRITISH ACRIMONY ABOUT CONSTITUTIONAL REFORM FOR HONG KONG THE TWO GOVERNMENTS ARE INCHING FORWARD ON OTHER ISSUES IN THE BRITISH COLONY'S 1997 TRANSFER TO CHINESE RULE CHINESE OFFICIALS IN THE PAST WEEK INDICATED WILLINGNESS TO RESUME FORMAL MEETINGS ON FINANCING 2045 BILLION FOR HONG KONG'S NEW AIRPORT PROJECT FOR WHICH CHINA WANTS TO AVOID LIABILITY THEY ALSO AGREED TO HOLD MEETINGS NEXT WEEK ON MILITARY ASPECTS OF THE 1997 HANDOVER THE NEW PRAGMATISM MAY INDICATE SIDESTEPPING FOR NOW THE BATTLE OVER HONG KONG ELECTORAL RULES TO PRESERVE AN ELEMENT OF DEMOCRACY NEGOTIATIONS BROKE DOWN LAST NOVEMBER LEAVING BRITAIN INTENT ON PROCEEDING UNILATERALLY WITH THE REFORMS AND CHINA VOWING TO UNDO THEM AFTER 1997 WHEN FRANCE ISSUED A 50FRANC BANKNOTE LAST OCTOBER DESIGNED TO HEX COUNTERFEITERS THE CENTRAL BANK HAD A BAD SPELL OF ITS OWN THE BILL FEATURED THE WRITER ANTOINE DE SAINTEXUPERY BUT PLACED AN ACCENT OVER THE CAPITAL E INACCURATELY SUBSEQUENT PRINTINGS GOT IT RIGHT VIDEO GAMES ARE MANEATING TIGERS THAT THE OFFICIAL PEOPLE'S DAILY SAID ARE DEVOURING CHINA'S CHILDREN TERMING THE GAMES VIOLENT UNHEALTHY AND PORNOGRAPHIC THE COMMENTARY URGED BANNING THEM BEFORE THEY ENCOURAGE A CRIME WAVE 9402180108 940218 PEPPERAND SALT MY NEIGHBORS' JIBES AND JAPES INVENTING NEW THINGS PLEASE THAT'S JUST A VENERATION GAP 9402180107 940218 LETTERS TO THE EDITOR I AM NOT AN ARMS DEALER' IN RESPONSE TO YOUR FEB 4 PAGEONE STORY GUNS AND BUTTER KHASHOGGI IS BACK ANGLING FOR A PROFIT FROM MIDEAST PEACE 9402180106 940218 YOUR MONEY MATTERS WEEKEND REPORT TAXES 1994 PREPARING YOUR '93 RETURN MAY PROVE TAXING BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL TIME TO REACH FOR THE PAINKILLERS ALTHOUGH THE APRIL 15 INCOMETAX DEADLINE IS STILL TWO MONTHS AWAY GETTING A HEAD START ON YOUR RETURNS IS ESPECIALLY ADVISABLE THIS YEAR THE REASON IS THE 1993 TAX ACT THAT LAW SIGNED IN OCTOBER BY PRESIDENT CLINTON RAISED TAXES RETROACTIVELY TO THE START OF LAST YEAR ON MANY UPPERINCOME TAXPAYERS AND HITS THEM WITH SOME FIENDISHLY COMPLICATED NEW PROVISIONS BUT AT THE SAME TIME A FEW OTHER PROVISIONS COULD HELP MANY LESS HIGHLY PAID AMERICANS SAVE SIGNIFICANT AMOUNTS OF MONEY SAYS CLINT STRETCH DIRECTOR OF TAX LEGISLATIVE AFFAIRS AT THE ACCOUNTING FIRM OF DELOITTE & TOUCHE THE ONLY SOLUTION IS TO START PULLING YOUR RECORDS TOGETHER EARLY THAT'S APT TO BE ESPECIALLY IMPORTANT FOR PEOPLE PLANNING TO RELY ON AN ACCOUNTANT OR OTHER PROFESSIONAL TAX PREPARER YOU DON'T WANT TO BE STUCK TRYING TO GET AN APPOINTMENT AT THE LAST MINUTE OF WHAT IS CERTAIN TO BE A HECTIC SEASON FOR TAX PROFESSIONALS MOREOVER PEOPLE WHO START GETTING READY NOW MAY BE SURPRISED TO FIND THAT THERE ARE SOME BRIGHT SPOTS IN THE NEW TAX LAW MANY HIGHINCOME TAXPAYERS FOR INSTANCE WILL QUALIFY FOR A PROVISION ALLOWING THEM TO DEFER PAYING PART OF THEIR HIGHER TAXES FOR ANOTHER TWO YEARS WITHOUT INTEREST OR PENALTIES BE SURE TO TAKE ADVANTAGE OF THIS OFFER BECAUSE IT AMOUNTS TO AN INTERESTFREE LOAN FROM THE GOVERNMENT AND THAT DOESN'T COME ALONG TOO OFTEN IN OUR LIFETIME SAYS RICHARD M CUMMINS A TAX PARTNER AND NATIONAL DIRECTOR OF FINANCIALPLANNING SERVICES AT COOPERS & LYBRAND IN NEW YORK MANY PEOPLE WITH ROUGHLY THE SAME INCOME AND FILING STATUS AS THE PRIOR YEAR WILL DISCOVER THEIR TAX BILL IS LITTLE CHANGED INDEED THE TREASURY ESTIMATES FEWER THAN 2 OF THE NATION'S 115 MILLION OR SO TAXPAYERS WILL FEEL THE STING OF THE NEW LAW'S HIGHER RATES SOME PEOPLE MAY EVEN OWE SLIGHTLY LESS BECAUSE OF INFLATION ADJUSTMENTS TO SEVERAL ITEMS INCLUDING TAXBRACKET LEVELS THE PERSONAL EXEMPTION AND STANDARD DEDUCTION A FEW CHANGES ARE ESPECIALLY IMPORTANT BECAUSE THEY RESTORE OLD TAX LAWS THAT SHOULD LEAD TO BIG SAVINGS FOR MANY PEOPLE HERE IS AN OVERVIEW OF THE MAJOR CHANGES THAT AFFECT THE TAXES YOU OWE FOR 1993 AND SOME ADVICE FROM TAX LAWYERS AND ACCOUNTANTS ON HOW TO GET ORGANIZED AND HOW TO AVOID OVERPAYING AND GETTING INTO UNNECESSARY BATTLES WITH THE INTERNAL REVENUE SERVICE GETTING ORGANIZED BE SURE TO DOUBLECHECK INFORMATION ON YOUR W2 FORM AS WELL AS ANY INTEREST DIVIDEND AND MORTGAGE DATA ON OTHER TAX FORMS YOU RECEIVED FROM BANKS BROKERAGE FIRMS AND MUTUALFUND COMPANIES REMEMBER THAT THE IRS RECEIVES COPIES OF THESE FORMS AND WILL WANT TO KNOW THE REASON FOR ANY DISCREPANCIES BETWEEN THOSE FORMS AND WHAT IS ON YOUR RETURN PAY SPECIAL ATTENTION TO FORM 1098 SHOWING MORTGAGE INTEREST ACCOUNTANTS SAY MORTGAGE LENDERS OFTEN MAKE MISTAKES THAT IF LEFT UNCORRECTED CAN LEAD TO UNPLEASANT CORRESPONDENCE WITH THE IRS FILING STATUS MOST MARRIED COUPLES WILL BENEFIT FROM FILING JOINTLY RATHER THAN SEPARATELY BECAUSE THE TAX RATES ARE LOWER BUT THERE ARE SOME MAJOR EXCEPTIONS FILING SEPARATELY MIGHT ENABLE A COUPLE TO CLAIM BIGGER DEDUCTIONS IF ONE SPOUSE HAS LARGE AMOUNTS OF MEDICAL BILLS CASUALTY LOSSES OR MISCELLANEOUS EXPENSES SUCH ITEMS MAY BE DEDUCTED ONLY TO THE EXTENT THEY EXCEED A CERTAIN PERCENTAGE OF ADJUSTED GROSS INCOME REACHING THOSE THRESHOLDS MAY BE EASIER IF THE DEDUCTIONS COUNT AGAINST ONLY ONE INCOME INSTEAD OF TWO SAYS SIDNEY KESS A NEW YORK TAX LAWYER AND CERTIFIED PUBLIC ACCOUNTANT AS WELL AS A CONSULTING EDITOR FOR CCH INC THE BIG TAX PUBLISHER THE THRESHOLDS ARE 75 FOR MEDICAL 2 FOR MISCELLANEOUS AND 10 FOR CASUALTY LOSSES AFTER SUBTRACTING INSURANCE REIMBURSEMENTS AND 100 BUT FILING A SEPARATE RETURN ALSO HAS SOME DRAWBACKS WHEN IN DOUBT FIGURE YOUR TAXES BOTH WAYS UPPERINCOME CHANGES NEW RATES OF 36 AND 396 ARE RETROACTIVE TO JAN 1 1993 THE NEW 36 RATE HITS SINGLES WITH TAXABLE INCOME OF 115000 A HEAD OF HOUSEHOLD WITH 127500 A MARRIED COUPLE FILING JOINTLY WITH 140000 AND A MARRIED PERSON FILING SEPARATELY WITH 70000 THE 396 RATE APPLIES TO ANYONE WITH TAXABLE INCOME OVER 250000 EXCEPT FOR SOMEONE MARRIED AND FILING A SEPARATE RETURN THERE THE THRESHOLD IS 125000 THE NEW LAW ALLOWS TAXPAYERS WHO OWE MORE BECAUSE OF THESE TWO NEW RATES TO DEFER PART OF THEIR 1993 TAXES THROUGH 1996 BUT DON'T ASSUME THIS OFFER APPLIES TO YOUR ENTIRE 1993 TAX BILL THE NEW LAW ALLOWS YOU TO DEFER ONLY TWOTHIRDS OF THE INCREASE IN TAXES CAUSED BY THE HIGHER NEW RATES TO CALCULATE THE DEFERRAL USE NEW FORM 8841 ALAS THIS MEANS GOING THROUGH THE MINDNUMBING EXERCISE OF FIGURING OUT THE ALTERNATIVE MINIMUM TAX A COMPLEX PROVISION DESIGNED TO MAKE SURE EVERYONE PAYS TAXES SOME PEOPLE MAY BE ABLE TO DEFER MUCH LESS THAN THEY THINK WARNS RICK J TAYLOR SENIOR TAX MANAGER AT KPMG PEAT MARWICK IN WASHINGTON OTHER CHANGES AS MANY AS THREE MILLION SELFEMPLOYED WORKERS WILL BENEFIT FROM A PROVISION RESTORING A DEDUCTION OF 25 OF THEIR HEALTHINSURANCE PREMIUMS PREMIUMS PAID FOR THE TAXPAYER SPOUSE AND DEPENDENTS ALL COUNT THE NEW LAW INCLUDES PREMIUMS PAID FROM MID1992 THROUGH THE END OF 1993 THUS CONSIDER FILING AN AMENDED 1992 RETURN IF YOU QUALIFY MANY TAXPAYERS WHO GET EDUCATIONAL ASSISTANCE FROM THEIR EMPLOYERS STAND TO BENEFIT FROM A PROVISION RESTORING THE ABILITY TO EXCLUDE FROM THEIR INCOME AS MUCH AS 5250 OF SUCH AID THAT ALSO IS RETROACTIVE TO MID1992 ALLOWING MANY PEOPLE TO FILE AMENDED 1992 RETURNS THE LAW GREATLY ENCOURAGES MANY PEOPLE TO DONATE STOCKS BONDS ART REAL ESTATE AND OTHER PROPERTY THAT HAS RISEN IN VALUE TO THEIR FAVORITE CHARITY THAT'S BECAUSE THE NEW LAW ALLOWS TAXPAYERS TO DEDUCT A GIFT'S FULL MARKET VALUE NOT JUST COST OR OTHER BASIS WITHOUT HAVING TO WORRY ABOUT THAT ITEM TRIGGERING THE ALTERNATIVE MINIMUM TAX THIS PROVISION IS RETROACTIVE TO MID1992 FOR GIFTS OF TANGIBLE PERSONAL PROPERTY SUCH AS ART AND COLLECTIBLES MUSEUMS AND ART GALLERIES SAY THIS CHANGE ALREADY HAS PRODUCED A TORRENT OF NEW GIFTS MANY MARRIED COUPLES MAY BE ABLE TO USE AN EASIER TAX FORM ABOUT 25 MILLION COUPLES WITH TAXABLE INCOMES UNDER 50000 AND WITH NO DEPENDENTS MAY USE FORM 1040EZ IN THE PAST ONLY SINGLES COULD USE IT MUTUALFUND INVESTING IT'S EASY FOR MUTUALFUND INVESTORS TO MAKE BIG MISTAKES THAT LEAD TO OVERPAYMENT OF TAXES SUPPOSE YOU INVESTED 2000 IN A MUTUAL FUND SEVERAL YEARS AGO AND TOLD THE FUND TO REINVEST ALL YOUR DIVIDENDS WHICH TOTALED 500 LAST YEAR YOU SOLD ALL YOUR SHARES FOR 5000 HOW MUCH OF A CAPITAL GAIN SHOULD YOU REPORT MANY PEOPLE MAY ASSUME THEY HAVE A 3000 CAPITAL GAIN 5000 MINUS 2000 BUT THE RIGHT ANSWER IS 2500 5000 MINUS THE 2000 INVESTMENT AND THE 500 IN DIVIDENDS RECEIVED AND PREVIOUSLY TAXED FIGURING CAPITAL GAINS AND LOSSES CAN ALSO BE TRICKY THE IRS ALLOWS SEVERAL DIFFERENT METHODS FOR MANY PEOPLE THE EASIEST MAY BE THE AVERAGE BASIS METHOD BASED ON THE AVERAGE COST OF ALL SHARES PURCHASED MANY FUNDS NOW PROVIDE THIS INFORMATION TO HOLDERS BUT THAT METHOD MAY NOT BE AS ADVANTAGEOUS AS THE SPECIFIC SHARE IDENTIFICATION METHOD IN WHICH INVESTORS IDENTIFY WHICH SHARES THEY SOLD TYPICALLY THOSE AT THE HIGHEST COST AND REDUCE THEIR TAX BITE THE IRS HOWEVER SAYS THAT IN ORDER TO PICK THIS METHOD YOU MUST HAVE SPECIFIED WHICH SHARES YOU SOLD IN WRITING TO YOUR FUND OR BROKER AT THE TIME YOU SOLD THEM AND YOU SHOULD GET BACK A CONFIRMATION OF THIS MANY FUNDS SAY THEY AREN'T EQUIPPED TO DO THIS THE OTHER METHOD IS KNOWN AS FIRSTIN FIRSTOUT OR FIFO WHICH SIMPLY MEANS ASSUMING THAT THE SHARES SOLD WERE THE FIRST ONES YOU PURCHASED DURING RISING STOCK AND BOND MARKETS THIS METHOD OFTEN LEADS TO THE HIGHEST TAX TAB BUT IT CAN BE ADVANTAGEOUS FOR INVESTORS IN DOWN MARKETS WHEN TO HIRE A PRO DON'T EVEN TRY DOING YOUR OWN TAXES IF YOU ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX ACCOUNTANTS WARN IT'S NOT WORTH IT IN TIME OR AGGRAVATION HERE ARE A FEW OTHER AREAS WHERE IT MAY BE WISE TO SPEND A LITTLE EXTRA MONEY TO GET EXPERT ADVICE BOND SALES WHAT MAY LOOK LIKE A SIMPLE CAPITAL GAIN MAY ACTUALLY BE ORDINARY INCOME OR PART CAPITAL GAIN AND PART ORDINARY INCOME THE RULES ARE ESPECIALLY COMPLEX FOR ORIGINALISSUE DISCOUNT BONDS INCLUDING ZEROCOUPON BONDS ALSO THE NEW TAX LAW INCLUDES COMPLEX CHANGES AFFECTING MARKET DISCOUNT MUNICIPAL BONDS THOSE PURCHASED IN THE SECONDARY MARKET AT A DISCOUNT FROM FACE VALUE THAT RULE APPLIES ONLY TO MARKETDISCOUNT BONDS PURCHASED AFTER APRIL 30 1993 INVESTORS WITH EXTENSIVE PASSIVE INCOME SUCH AS RENTAL INCOME REALESTATE INCOME CAN ALSO BE EXTREMELY TRICKY IF YOU NEED HELP DON'T FEEL BAD ABOUT HALF OF THE 1149 MILLION INDIVIDUAL TAX RETURNS THE IRS RECEIVED LAST YEAR WERE DONE BY PAID PREPARERS 9402180105 940218 FINANCING BUSINESS MICROPROSE INC MICROPROSE INC ALAMEDA CALIF SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER TWO MILLION COMMON SHARES AT AS MUCH AS 8 A SHARE MANAGERS OF THE OFFERING WILL BE ROBERTSON STEPHENS & CO AND PIPER JAFFRAY INC 9402180103 940218 THE ONE AND ONLY ORIGINAL HARRY'S BAR ITS TANGLED HISTORY VENICE HAS ONE AS OF COURSE DOES PARIS BEYOND THAT COPIES ARE EVERYWHERE BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL VENICE HARRY CIPRIANI OWNER OF HARRY'S BAR ON THE GRAND CANAL RECENTLY PUBLISHED A COOKBOOK HIS FIRST SENTENCE THERE'S ONLY ONE HARRY'S BAR IF NOT FOR THE HARRY'S BAR IN HONG KONG AND THE ONE IN FLORENCE THAT WOULD BE CORRECT AS LONG AS YOU DIDN'T COUNT THE HARRY'S IN SINGAPORE THE THREE IN LONDON THE ONE IN SHANGHAI OR THE TWO IN MEXICO AND LEFT OUT THE HARRY'S IN BARCELONA AND GENEVA WHILE IGNORING THE HARRY'S AT SEA ON THE MS EUROPA AND THE RUMORED HARRY'S ON THE THAI ISLAND OF KOH SAMUI THERE ARE NO HARRY'S BARS IN THE US EITHER ASIDE FROM NEW YORK'S FIVE AND PHILADELPHIA'S FOUR THE ONES IN NEW ORLEANS AND LOS ANGELES AND 20ODD OTHERS EXCLUDING HARRY'S OYSTER BAR & AMERICAN GRILL IN OKLAHOMA CITY WHICH HAS CHANGED ITS NAME TO JAKE'S SO THAT SETTLES IT THERE IS ONE HARRY'S BAR EXCEPT FOR THE ORIGINAL HARRY'S NEW YORK BAR AT 5 RUE DAUNOU IN PARIS THERE'S ONLY ONE HARRY'S REPEATS DUNCAN MACELHONE THAT'S WHERE IT GETS MADDENING AS THE COCKTAIL CROWD THINS ON RUE DAUNOU HE SITS IN A BACK CORNER OF HIS BAR SWIZZLING A DRINK THERE'S ONLY ONE HARRY AS FAR AS I'M CONCERNED HE SAYS THAT WAS MY GRANDFATHER MOST OF THEM THEY COPY THIS ONE HARRY CIPRIANI IS SAYING ON A GRAY VENICE MORNING HIS BAR IS BRIGHT THE MARBLE FLOOR HEATED GENTLY FROM BELOW THESE PEOPLE COME AND SAY HARRY HOW ARE YOU' THEIR ATTITUDE IS YOU SHOULD BE FLATTERED MR MACELHONE AND MR CIPRIANI HAVE SOMETHING IN COMMON NEITHER IS A MCDONALD'S THE TWO ARE SMALLBUSINESS MEN IN A MULTINATIONAL WORLD AND BOTH LAY CLAIM TO A NAME BARTENDERS ARE WILD ABOUT AFTER 60 YEARS THEY HAVE TAKEN TO TUSSLING OVER IT AND TO HUNTING DOWN EVERY TOM DICK AND HARRY WHO OPENS A HARRY'S BAR YOU'RE DEALING WITH PEOPLE WHO HAVE SO LITTLE IMAGINATION THEY CAN'T NAME A BAR AFTER THEMSELVES OR THEIR MOTHERINLAW OR THEIR DOG MR MACELHONE SAYS ABOUT A RESTAURANT SAYS MR CIPRIANI WHAT'S IMPORTANT IS THAT YOU REMEMBER THE NAME DEFINING WHAT MAKES HARRY A GREAT BAR NAME IS THE PROBLEM THE VENICE HARRY'S HAS CACHET AND FINE FOOD THE PARIS HARRY'S ATMOSPHERE AND HOT DOGS SOME PLACES CALLED HARRY'S COPY VENICE SOME PARIS SOME FALL BETWEEN THE STOOLS AND SOME ARE OWNED BY SOMEBODY ELSE CALLED HARRY THE HARRY'S IN BARBADOS IS A REGGAE MUSIC JOINT THEY PLAY DOMINOES AT THE HARRY'S IN MEXICO CITY THE HARRY'S IN TUSCALOOSA ALA IS OWNED BY 1972 UNIVERSITY OF ALABAMA BASKETBALL ALLAMERICA HARRY HAMMOND MY NAME'S PETER PETER CHOW SAYS THE OWNER OF THE HONG KONG HARRY'S ON THE PHONE YES I KNOW HARRY'S FAMOUS IN THE WORLD OYSTER MUSSEL ANYTHING YOU WANT WE GOT SOMETHING CRASHES IN THE BACKGROUND THERE'S ONE IN PARIS MR CHOW SAYS IN ITALY I GOT NO IDEA TO MR CIPRIANI OWNER OF THE ONEANDONLY HARRY'S HIS VENICE BAR AFFORDS A KIND OF LUXURY YOU CAN SENSE WITH YOUR EYES CLOSED SIMPLICITY HE SAYS IT ALLOWS THE SPIRIT TO DEVELOP HE IS 61 PARTIAL TO BRIGHT TIES AND THE DEFTEST OF HOSTS HIS TWO AIRY ROOMS SEAT JUST 85 THE GRAYMARBLE BAR SEATS FIVE ON THE WALL HANGS A PHOTO OF LOWER MANHATTAN IN THE 1930S A NEARDUPLICATE OF IT HANGS ON RUE DAUNOU NOT FAR FROM THE BOXING GLOVE DANGLING ABOVE THE BAR THIS IS A COCKTAIL BAR MR MACELHONE SAYS HE IS 40 A FORMER BANKER IN A SPORTS COAT IT'S ABOUT DRINKS AND THE WAY PEOPLE LIVE IN THEM THE TWO BARS COULDN'T BE LESS ALIKE BUT MR MACELHONE BELIEVES BOTH SPRING FROM THE SAME HARRY IN 1911 AS HE TELLS IT AN EXJOCKEY CRATED UP A MAHOGANYPANELED BAR IN NEW YORK SHIPPED IT TO PARIS AND OPENED THE BAR HARRY MACELHONE A SCOT CAME ALONG TO SHAKE COCKTAILS AND TOOK OVER IN 1923 HARRY'D GO TO VENICE HIS GRANDSON SAYS HE'D STAY AT A HOTEL WHERE THERE WAS ONE GIUSEPPE CIPRIANI WHO TOLD HARRY HE WANTED TO OPEN A TRATTORIA HARRY SAID THAT WASN'T AS GOOD AS OPENING A BAR SO THEY OPENED A BAR IT WAS CALLED HARRY'S BUT HARRY CIPRIANI SAYS HIS FATHER GIUSEPPE NEVER KNEW HARRY MACELHONE IN 1929 HE SAYS GIUSEPPE MET A BOSTONIAN HARRY PICKERING WHO WAS OUT OF CASH GIUSEPPE PAID HIS WAY HOME TWO YEARS LATER WHEN MR PICKERING REPAID THE DEBT GIUSEPPE OPENED A BAR AND NAMED IT HARRY'S WHEN HIS SON WAS BORN GIUSEPPE NAMED HIM AFTER THE BAR MY FATHER DIDN'T THINK OF THE HARRY'S IN PARIS SAYS HARRY CIPRIANI IT WASN'T SO FAMOUS ACCORDING TO MR CIPRIANI HARRY PICKERING DIED IN MONACO ACCORDING TO MR MACELHONE HE DIDN'T EXIST AFTER WORLD WAR II HE MAINTAINS HIS GRANDFATHER REVISITED VENICE AND FOUND THAT HARRY'S BAR WAS A RESTAURANT HE HAD A MAJOR RUNIN WITH THE CIPRIANIS SAYS HIS GRANDSON AND WE'VE HAD A RUNIN EVER SINCE WHETHER HARRY MET GIUSEPPE OR NOT THEIR LEGACY IS A MUDDLE THEY GAINED RENOWN FOR FIXING MEALS AND MIXING DRINKS NOT FOR PRACTICING TRADEMARK LAW NEITHER THOUGHT OF UNTANGLING THEIR REPUTATIONS SO THEIR NAMES ESCAPED THEM FLORENCE STRUCK FIRST ENRICO MARLOTTI OPENED A KNOCKOFF OF THE VENICE HARRY'S THERE IN 1953 FLORENCE SPAWNED A ROME HARRY'S AND A LOS ANGELES HARRY'S WHICH ONCE PUT OUT A MOCK MOVIE POSTER WITH THE LINE BASED ON THE ORIGINAL BY ENRICO MARLOTTI THEN CAME LONDON A PRIVATE CLUB WHERE THE BAR IS PINK MARBLE AND MEN MUST WEAR DARK SUITS IT WAS JUST A NAME THAT SOUNDED RATHER GOOD SAYS GAVIN RANKIN WHO HELPS MANAGE IT BUT THE CHOICE OF NAME FOR HARRY'S BAR IN LONDON WASN'T QUITE A COINCIDENCE HERE'S WHY IN 1958 GIUSEPPE CIPRIANI OPENED A HOTEL IN VENICE HOTEL CIPRIANI THE HOTEL HAS CHANGED HANDS AND THE CURRENT OWNER IS ORIENT EXPRESS HOTELS INC OF NEW YORK WHICH ALSO OWNS 49 OF THE LONDON HARRY'S HAVING ANNEXED HIS FIRST NAME ORIENT EXPRESS IS NOW AFTER MR CIPRIANI'S LAST ONE IN THE 1980S MR CIPRIANI OPENED A RESTAURANT IN NEW YORK HE CALLED IT BY HIS FULL NAME HARRY CIPRIANI SO ORIENT EXPRESS IS SUING HIM IT SAYS PEOPLE BOOKING ROOMS AT HOTEL CIPRIANI GET MIXED UP IT'S COMPLICATED MR CIPRIANI ADMITS AND THE FIGHT FOR HIS LAST NAME IS JUST THE HALF OF IT HE SAYS WE ALSO HAVE A LITTLE PROBLEM WITH MR MACELHONE AFTER YEARS ON THE ROPES THE MACELHONES BEGAN SPARRING WITH HARRY'S BARS IN THE 1970S THEY PUT FIVE UNDER LICENSE TWO GERMAN TWO SWISS AND ONE AT SEA THEY CLOSED HARRY'S IN PORTUGAL AND AUSTRIA DUNCAN MACELHONE'S INVITATION TO THE GRAND OPENING OF A HARRY'S IN TORONTO HE SAYS QUICKLY LED TO ITS GRAND CLOSING BUT NO GLOBAL TRADEMARK CODE SUPPORTS HIM MR MACELHONE SHUT A CANNES HARRY'S ONLY TO HAVE IT REOPEN IN MONTE CARLO SPAIN DENIED HIM THE HARRY'S NAME IN BARCELONA THEN GAVE IT TO A CLONE ONCE HE WENT AFTER HARRY HELMSLEY BUT SINCE MR HELMSLEY IS A HARRY WITH BARS IN NEW YORK HE WAS JUDGED FIT TO OWN A HARRY'S NEW YORK BAR THAT LEAVES THE ORIGINAL NAMESAKE HARRY'S IN VENICE MR CIPRIANI PUTS OUT A LINE OF PASTA THE LABEL SAID HARRY'S BAR UNTIL MR MACELHONE HAD A SHIPMENT OF IT SEIZED IN GERMANY MR CIPRIANI ALSO BOTTLES HIS BELLINI COCKTAIL THE CAPS SAY HARRY'S BAR SO WHEN A SHIPMENT ARRIVED IN FRANCE MR MACELHONE HAD IT SEIZED TOO THIS LED MR CIPRIANI TO DO WHAT HE HAD NEVER DONE HE TRAVELED TO PARIS A FEW MONTHS AGO AND SET FOOT IN ANOTHER HARRY'S BAR MR MACELHONE WAS WILLING TO TALK ON ONE CONDITION HARRY IS A GENTLEMAN EXTRAORDINAIRE HE SAYS BUT I WON'T LET HIM GO ONE INCH SIDEWAYS IN NOT RECOGNIZING THAT MY GRANDFATHER HELPED HIS FATHER OPEN UP MR CIPRIANI WENT HOME WITHOUT AN AGREEMENT TO NURSE HIS IDENTITY CRISIS HE HAS DONE A DO YOU KNOW ME AMERICAN EXPRESS AD AND FINISHED A NOVEL ABOUT A SURREAL HARRY'S THAT OPENS IN BEIRUT WHEN CELEBRITIES COME TO HIS BAR AS THEY DO HE STILL CHATS AMIABLY EVEN IF HE IS TOO DISTRACTED TO KNOW EXACTLY WHO THEY ARE I'M GOOD WITH FACES HARRY CIPRIANI SAYS OFTEN I'M NO GOOD WITH NAMES 9402180102 940218 WHAT'S NEWS WORLDWIDE SERBS BEGAN A LARGESCALE WITHDRAWAL OF WEAPONS FROM HILLS AROUND SARAJEVO CONVOYS OF BOSNIAN SERB ARTILLERY WITHDREW FROM POSITIONS AROUND THE CAPITAL AS A DEADLINE NEARED FOR THEM TO PULL BACK OR BE BOMBED BY NATO FORCES THE PULLOUT REPORTED BY UN MONITORS FOLLOWED A PLEDGE BY BOSNIAN SERB LEADER KARADZIC TO COMPLY WITH NATO'S SUNDAY DEADLINE HE AGREED TO THE STEP DURING TALKS WITH RUSSIAN ENVOY CHURKIN WHO SAID MOSCOW WOULD CONTRIBUTE SOLDIERS TO ENFORCE A CEASEFIRE IN THE CITY UN COMMANDERS WERE TOLD THE SERBS WOULD MEET NATO'S CONDITIONS WITHIN 36 HOURS CLINTON SAID I HOPE THE AIR STRIKES WILL NOT BE NECESSARY AND THEY WILL NOT OCCUR IF THE SERBS WILL COMPLY A FORMER US TREASURER PLEADED GUILTY TO OBSTRUCTING AN INDEPENDENT COUNSEL'S PROBE INTO CORRUPTION AT HUD CATALINA VASQUEZ VILLALPANDO WHO SERVED AS US TREASURER IN THE BUSH ADMINISTRATION ALSO PLEADED GUILTY TO CHARGES OF TAX EVASION AND NOT DISCLOSING INCOME FROM HER FORMER EMPLOYER WHILE SHE WAS TREASURER THE FDIC FOUND NO EVIDENCE THAT THE ROSE LAW FIRM WHERE HILLARY RODHAM CLINTON AND SEVERAL ADMINISTRATION OFFICIALS WERE PARTNERS VIOLATED CONFLICTOFINTEREST RULES IN ITS DEALINGS WITH A FAILED ARKANSAS THRIFT SEPARATELY PRESIDENT CLINTON REPEATED HIS ASSERTIONS THAT THE WHITEWATER FLAP WILL DIE DOWN EDUCATION SECRETARY RILEY ANNOUNCED THAT COLLEGES AND UNIVERSITIES MAY USE RACEBASED SCHOLARSHIPS TO REMEDY PAST DISCRIMINATION OR TO DIVERSIFY STUDENT BODIES THE FUTURE OF RACEBASED SCHOLARSHIPS HAD BEEN IN LIMBO SINCE 1990 WHEN THE BUSH ADMINISTRATION FIRST PROPOSED THAT THEY BE BANNED THAT ORDER NEVER TOOK EFFECT THE FAA AUTHORIZED AIRLINES TO START USING MILITARY SATELLITE SIGNALS FOR NAVIGATION BUT SEVERAL OBSTACLES COULD PREVENT QUICK USE OF THE TECHNOLOGY AIRLINES HAVE SAID THAT USE OF THE MILITARY'S 24 ORBITING SATELLITES COULD SAVE THE INDUSTRY HUNDREDS OF MILLIONS OF DOLLARS BY ALLOWING THEM TO FLY MORE EFFICIENT ROUTES INKATHA LEADER BUTHELEZI RIDICULED THE LATEST POLITICAL CONCESSIONS FROM THE AFRICAN NATIONAL CONGRESS AS A PLOY BOLSTERING FEARS THAT POLITICAL UNREST MAY UNDERMINE SOUTH AFRICA'S APRIL ALLRACE ELECTION HE SAID HIS INKATHA PARTY AND THE KWAZULU BLACK HOMELAND WOULD OPPOSE THE ELECTION WITH EVERY DEMOCRATIC MEANS AT OUR DISPOSAL ARISTIDE REVERSED HIMSELF AND AGREED TO MEET IN WASHINGTON WITH A GROUP OF VISITING HAITIAN PARLIAMENTARIANS TO DISCUSS THEIR PLAN FOR ENDING HAITI'S POLITICAL IMPASSE THE OUSTED PRESIDENT HAS PUBLICLY REJECTED THE PROPOSAL WHICH CALLS FOR HIM TO NAME A NEW PRIME MINISTER THE PLAN DOESN'T SET A FIRM DATE FOR ARISTIDE'S RETURN TO POWER MEXICAN OFFICIALS WILL HOLD PEACE TALKS WITH REBEL NEGOTIATORS MONDAY AT AN UNDISCLOSED LOCATION IN THE SOUTHERN STATE OF CHIAPAS THE ANNOUNCEMENT BY THE GOVERNMENT'S PEACE ENVOY FOLLOWED WEDNESDAY'S RELEASE OF A FORMER CHIAPAS GOVERNOR WHO HAD BEEN HELD HOSTAGE BY THE REBELS SECRETARY OF STATE CHRISTOPHER HAS URGED SYRIA'S FOREIGN MINISTER TO TRY TO RESTRAIN GUERRILLAS WHO FIRED A ROCKET INTO NORTHERN ISRAEL FROM LEBANON ON WEDNESDAY A SENIOR CLINTON ADMINISTRATION OFFICIAL SAID YESTERDAY GUERRILLAS IN LEBANON LOBBED ROCKETS INTO ISRAELIOCCUPIED SOUTH LEBANON A LUTHERAN MINISTER IN NORWAY LINKED LAST WEEKEND'S THEFT OF THE FAMOUS MUNCH PAINTING THE SCREAM TO AN ANTIABORTION CAMPAIGN THAT HAS BEEN SEEKING PUBLICITY DURING THE WINTER OLYMPICS HE SAID THE PAINTING WOULD EMERGE AGAIN IF AN ANTIABORTION FILM THE SILENT SCREAM IS SHOWN ON NATIONAL TELEVISION VIETNAM AND THE US MOVED CLOSER TO ESTABLISHING DIPLOMATIC TIES AS HANOI SAID TALKS WOULD BE HELD IN BOTH NATIONS THAT WOULD TOUCH ON THE ISSUE OF HUMAN RIGHTS BUT A VIETNAMESE SPOKESWOMAN STRESSED THAT NORMALIZATION OF RELATIONS IS IN NO WAY ATTACHED TO POLITICAL CONDITIONS THE US REJECTED AN IRAQI DEMAND FOR THE LIFTING OF A UN EMBARGO ON IRAQ'S OIL EXPORTS SAYING BAGHDAD HADN'T COMPLIED WITH A UN RESOLUTION CALLING FOR THE DESTRUCTION OF DANGEROUS WEAPONS DIED RANDY SHILTS 42 JOURNALIST AND AUTHOR OF AND THE BAND PLAYED ON AND OTHER BOOKS ABOUT AIDS IN GUERNEVILLE CALIF OF AIDS COMPLICATIONS 9402180101 940218 HEARD ON THE STREET US SURGICAL QUALIFIES FOR DOWNHILL RACER TITLE FOLLOWING OLYMPICSIZED DROP IN STOCK PRICE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BEARS KNOWN AS SHORTSELLERS HAVE BEEN WRONG ABOUT MANY STOCKS IN THE CURRENT BULL MARKET BUT US SURGICAL IS ONE OF THOSE THEY GOT RIGHT FROM A PEAK ABOVE 134 THE STOCK TOOK A COURSE WORTHY OF AN OLYMPICMOGUL SKIER HITTING A FEW BUMPS BUT BASICALLY GOING DOWN DOWN AND DOWN AND THE DOWNHILL DRIFT REMAINS EVEN AFTER THE STOCK'S 21 PLUNGE WEDNESDAY SOME MARKET VETERANS ASSERT TRIGGERING THE DROP WAS AN UNFAVORABLE COURT RULING A ONETIME SETBACK THAT PROMPTED SOME BUYING YESTERDAY BY BOTTOMFISHERS LOOKING FOR A REBOUND ALSO DOING SOME BUYING YESTERDAY WERE SHORTSELLERS CASHING OUT PORTIONS OF THEIR BETS AGAINST THE STOCK STILL THE STOCK FELL AGAIN YESTERDAY LOSING THREE POINTS OR 14 TO 18 1/2 AND THE SHORTSELLERS WHO HAVE BEEN SPECTACULARLY RIGHT ABOUT THIS ONCEHIGHFLYING STOCK UP TO NOW SAY THE WORST ISN'T NECESSARILY OVER THEY MAINTAIN BIG SHORT POSITIONS IN A SHORT SALE STOCK IS BORROWED AND IMMEDIATELY SOLD THE IDEA IS TO PROFIT FROM ANY ENSUING PRICE DECLINE THAT ALLOWS THE RETURN OF CHEAPER SHARES TO LENDERS AT THIS POINT YOU CAN FLIP A COIN AS TO WHETHER US SURGICAL WILL RECOVER OR COLLAPSE SAYS ROBERT HOLMES OF GILFORD PARTNERS CHICAGO US SURGICAL THIS WEEK LOST ITS BID FOR A FAVORABLE COURT RULING IN A PATENTINFRINGEMENT CLAIM AGAINST RIVAL JOHNSON & JOHNSON AND HAS SAID IT'S LOOKING FOR A CASH INFUSION US SURGICAL MAKES TINY SURGICAL INSTRUMENTS THAT ARE INSERTED INTO THE BODY THROUGH A TUBE MR HOLMES SAYS HE SHORTED US SURGICAL IN THE SHORTSELLING FUND HE RUNS WHEN IT WAS IN THE MIDTOHIGH 20S HE HAS SHRUNK THAT BET A LITTLE AT THIS LEVEL MEANING HE BOUGHT SHARES TO CASH OUT SOME OF HIS BEARISH BET BUT MR HOLMES CAUTIONS IF THE SMALL INVESTOR IS TRYING TO BOTTOMFISH HERE HE'LL BE TRYING TO CATCH A FALLING KNIFE TRADERS SAY THAT ONE OF US SURGICAL'S MOST ARDENT BEARS MEYER BERMAN A GREAT NECK NY SHORTSELLER MAINTAINS MOST OF HIS HUGE SHORT POSITION TOO IN ONE OF WALL STREET'S BEST SHORTSELLING BETS IN AN OTHERWISE POOR PERIOD FOR SHORTSELLERS MR BERMAN SHORTED AT LEAST TWO MILLION SHARES OF US SURGICAL AT PRICES AS HIGH AS 108 AND HE HAS STUBBORNLY REFUSED TO CASH OUT ONE TRADER SAID MR BERMAN HAS COVERED SOME STOCK BUT NOT TOO MUCH MR BERMAN DECLINED TO BE INTERVIEWED WHEN THE COMPANY WAS FLYING HIGH SOME PRESCIENT BEARS CORRECTLY FORESAW PROBLEMS FROM COMPETITION WITH JOHNSON & JOHNSON'S ETHICON UNIT AS WELL AS A DECLINING MARKET FOR THE DISPOSABLE NONREUSABLE SURGICAL INSTRUMENTS THAT ARE US SURGICAL'S MAINSTAY IT'S NOT THE FACT THAT US SURGICAL IS IN THE WRONG INDUSTRY BUT THE WRONG PART OF THE INDUSTRY SAYS ONE BEAR THAT US SURGICAL CONTINUES TO DECLINE FOLLOWING A 67 DROP IN 1993 RECALLS ADVICE FROM FIDELITY INVESTMENTS' STAR STOCKPICKER PETER LYNCH ONE OF HIS 10 MOST DANGEROUS THINGS PEOPLE SAY ABOUT STOCK PRICES IS IF IT'S GONE DOWN THIS MUCH ALREADY IT CAN'T GO MUCH LOWER SPEAKING OF FIDELITY RUMOR HAD IT THAT FIDELITY WAS BOTTOMFISHING IN US SURGICAL AFTER SELLING OUT IN EARLY 1993 INTHEKNOW TRADERS CONFIRM FIDELITY BOUGHT ALMOST ONE MILLION SHARES BUT IN EARLY JANUARY THIS YEAR FIDELITY DECLINED TO COMMENT ABOUT ITS CURRENT PLANS WALL STREET ANALYSTS HAVE BEEN KINDER TO US SURGICAL THAN HAVE THE BEARS BUT THAT IS CHANGING PAINEWEBBER ANALYST DAVID LOTHSON YESTERDAY CUT HIS RATING TO UNATTRACTIVE FROM NEUTRAL EVEN A BULL HAS FAINT PRAISE FAHNESTOCK & CO YESTERDAY UPGRADED US SURGICAL TO SPECULATIVE BUY FROM HOLD WHILE WE DO NOT MINIMIZE THE COMPANY'S FINANCIAL AND OPERATING PROBLEMS WROTE ANALYST ROBERT C DUNNE WE BELIEVE IT IS UNLIKELY THAT USS WILL BE FORCED INTO BANKRUPTCY PROCEEDINGS PRIVATIZATION FEVER THE HOTBUTTON FOR INVESTORS THIS WEEK WAS THE ONE MARKED PRIVATIZE MORE THAN 11 BILLION POURED INTO YESTERDAY'S INITIAL PUBLIC OFFERING OF GLOBAL PRIVATIZATION FUND A PUBLICLY TRADED OR CLOSEDEND FUND MANAGED BY ALLIANCE CAPITAL MANAGEMENT THE FUND'S INITIAL PUBLIC OFFERING OF 745 MILLION SHARES WAS PRICED LAST NIGHT AT 15 A SHARE DRAWING ABOUT TRIPLE THE 350 MILLION THE FUND WAS EXPECTED TO PULL IN THE FUND TO BE LISTED ON THE NEW YORK STOCK EXCHANGE WITH THE SYMBOL GPF WILL INVEST AROUND THE WORLD IN PRIVATIZING STATE ENTERPRISES UNDERWRITER KIDDER PEABODY DECLINED TO COMMENT CITING SEC RESTRICTIONS 9402180100 940218 LETTERS TO THE EDITOR TACO BELL PROSPERS WITHOUT ESPIONAGE CONCERNING YOUR JAN 13 ENTERPRISE ARTICLE THE SPYING ALLEGATIONS MADE IN FRANCHISEE RICHARD COHN'S CASE AGAINST TACO BELL ARE ABSOLUTELY AND UNEQUIVOCALLY FALSE WE DO NOT CONDONE THE USE OF SUCH TACTICS NOR DO WE USE THEM IN ANY OF OUR RESTAURANTS OR OPERATIONS TACO BELL CORP WHICH HAS FLOURISHED TO A 42 BILLION WORLDWIDE SYSTEM OF MORE THAN 10000 POINTS OF ACCESS IS BUILT ON A FOUNDATION OF HIGHEST INTEGRITY AND SOUND BUSINESS PRACTICES YOU CORRECTLY REPORTED THE FEDERAL COURT'S DISMISSAL OF THE ENCROACHMENT ALLEGATIONS MADE BY MR COHN AGAINST TACO BELL THAT WAS MR COHN'S ORIGINAL COMPLAINT AGAINST US AND THE COURT RULED IN OUR FAVOR THE SOCALLED SPYING CHARGES WERE ADDED ALMOST A YEAR LATER WHEN MR COHN AND HIS ATTORNEYS REALIZED THEY HAD NO CASE AGAINST US ON ENCROACHMENT 9402180099 940218 REVIEW & OUTLOOK EDITORIAL ASIDES EAU NO SAN FRANCISCO IS STEWING IN ITS OWN JUICES AGAIN SKUNK JUICE TO BE SPECIFIC WITH THE ARMY CLOSING UP SHOP AT THE PRESIDIO ITS ROUTINE ERADICATION OF THE BLACKANDWHITE CRITTERS THERE HAS ENDED AND THEY'VE BEGUN TO PROLIFERATE ON THE WESTERN SIDE OF THE CITY ANIMALRIGHTS DOCTRINE PREVENTS EXTERMINATION THE CITY'S ANIMAL CARE AND CONTROL DIRECTOR ESSENTIALLY SAYS GET USED TO IT THEY WERE HERE FIRST ENJOY 9402180098 940218 LETTERS TO THE EDITOR CONSERVATION VS ENVIRONMENTALISM I AM DISAPPOINTED IN THE TONE AND CONTEXT OF YOUR JAN 17 ARTICLE ON ALASKA PULP CO I'VE SPENT MY ADULT LIFE IN BUSINESS AND I AM KNOWLEDGEABLE ABOUT THE TIMBER INDUSTRY IN SOUTHEASTERN ALASKA I'M CEO OF A COMPANY THAT OWNS AND DEVELOPS TIMBERLANDS AND AM A BOARD MEMBER OF THE ALASKA FOREST ASSOCIATION WHICH REPRESENTS THE TIMBER OWNERS LOGGERS ROAD BUILDERS AND MILLS IN THE STATE I LIVE AND MAKE MY LIVING IN THE TONGASS NATIONAL FOREST YOUR ARTICLE ASSIGNS A MOTIVE TO THE US FOREST SERVICE WITHOUT ANY SUPPORTING EVIDENCE THE FACT IS THAT THE SERVICE ISSUED A NOTICE OF CONTRACT CANCELLATION THE MOTIVE OF THE SERVICE IS NOT EVIDENT IN THIS NOTICE YOU OFFER THE OPINION OF SOME THAT THERE HAS BEEN OVERCUTTING IN THE TONGASS YOU DO NOT OFFER THE OPINION OF THOSE WHO ARE ACTUALLY IN CHARGE OF THE PROGRAM THERE THE FACTS ARE THAT OF THE 17 MILLION ACRES IN THE TONGASS NATIONAL FOREST ONLY ONETENTH OF 1 WILL BE HARVESTED EACH YEAR OVER THE 100YEAR ROTATION CYCLE 10 WILL BE HARVESTED FORTY PERCENT OF THE TONGASS IS IN LANDUSE DESIGNATIONS THAT ARE EITHER WILDERNESS OR LIMITED ACCESS TWENTYTHREE PERCENT OF THE TONGASS IS DESIGNATED FOR INTENSIVE USES WHICH INCLUDE LOGGING BUT LESS THAN HALF OF THAT AREA WILL BE USED FOR LOGGING YOU PROVIDE OPINIONS OF ENVIRONMENTAL ATTORNEYS BY WHOSE STANDARDS DO YOU MEASURE WHETHER AN INDIVIDUAL IS ENVIRONMENTAL THOSE OF US WHO LIVE AND WORK HERE WERE CONSERVATIONISTS LONG BEFORE THE NEW TERMS WERE COINED WE CARE MORE THAN ANY POLITICAL ADVOCACY GROUP THAT OUR HARVEST PRACTICES LEAVE THE LAND FERTILE AND ABLE TO SUPPORT A NEW CROP WE OBEY THE LAW MONITOR THE HEALTH OF FISH STREAMS BUILD ROADS TO SPECIFICATIONS THAT CONTROL RUNOFF LEAVE BUFFERS AROUND WATER BODIES AVOID STEEP SLOPES ELEVATE LOGS OVER STREAM BEDS AND GENERALLY TAKE GOOD CARE OF THE LAND THE DIFFERENCE BETWEEN THOSE IN THE TIMBER INDUSTRY AND THOSE REFERRED TO AS ENVIRONMENTALISTS IS A MATTER OF POLITICS AND VALUES NOT HUSBANDRY YOU REFER TO A TIMBER SALE ON PRINCE OF WALES ISLAND INCORRECTLY PLACING IT ON CROWN PRINCE WILLIAM ISLAND THE ERROR SUGGESTS INDIFFERENCE TO THE FACTS OF THE PRESENT DEBATE ON THE TONGASS IN MY YOUTH I LEARNED TO KNOW A GOOD DRYING DAY BREEZY AND SUNNY CONDITIONS OFFERED THE OPPORTUNITY AND INITIATIVE AND EFFORT PRODUCED THE RESULT SO IT IS IN THE TONGASS THIS IS GOOD TIMBERGROWING COUNTRY RAIN AND MODERATE TEMPERATURE OFFER THE OPPORTUNITY WE DO THE REST WE HAVE NOT WREAKED ENVIRONMENTAL HAVOC THE SALMON STREAMS ARE PRODUCTIVE THE AREAS CUT ARE IN SUSTAINABLE PROPORTION TO THE FORECAST DEMAND THE OTHER SPECIES HERE HAVE VIABLE HABITAT THE WORLD DEMAND FOR FIBER WILL BE SUPPLIED FROM SOME SOURCE FAR BETTER THE SUPPLY COME FROM THE TONGASS WHERE STATE AND FEDERAL LAW AND COMMON SENSE ACHIEVE THESE RESULTS THAN FROM ANOTHER COUNTRY WITH LESS REGULATORY AND SELFCONTROL 9402180097 940218 LETTERS TO THE EDITOR IN LILLEHAMMER A SMILE COULD BE AN INSULT YOUR FROSTY MUGGS PAGEONE ARTICLE ON JAN 17 ABOUT LILLEHAMMER NORWAY'S LACK OF A SUNNY DISPOSITION IS UNFORTUNATELY BASED ON A MISUNDERSTANDING OF A LILLEHAMRINGER'S USE OF A SMILE IT MAY SURPRISE YOU BUT A GREETING WITH A SMILE COULD BE TAKEN AS AN INSULT OR EVEN A RIDICULE AND DEFINITELY NOT AS A FRIENDLY GREETING A FRIENDLY AND POLITE GREETING IS AN INDICATION OF RESPECT AND FOR GENTLEMEN INCLUDES A SERIOUS BOW AND THE LIFTING OF A HAT OR CAP TO INDICATE THE HIGH ESTEEM HELD FOR THE PERSON BEING GREETED THERE IS NO LACK OF SMILES ONCE THE GREETING IS OVER AND YOU WILL FIND A GOOD SENSE OF HUMOR AND SMILES AMONG THE PEOPLE THEIR WAYS MAY BE TOO FORMAL TODAY HOWEVER IT MAY BE DIFFICULT AT FIRST FOR THEM TO GET USED TO THE AMERICAN GREETING WITH THE FRIENDLY SMILE YOU MENTIONED GUDBRANDSDALEN VALLEY SEVERAL TIMES THEREBY COMMITTING A REDUNDANCY GUDBRANDSDALEN MEANS GUDBRANDS VALLEY NAMED AFTER A WEALTHY AND POWERFUL NOBLE GUDBRAND WHO LIVED THERE EARLY IN THE SECOND MILLENNIUM 9402180096 940218 THE AMERICAS A NEW SCRIPT FOR MEXICO'S POLITICAL THEATER BY DAVID ASMAN MEXICO CITY FOR THE PAST SIX YEARS OR SO INVESTORS SPECULATING ABOUT THE CURRENT OR FUTURE VALUE OF THE MEXICAN MARKET HAVE TAKEN LITTLE HEED OF MEXICO'S POLITICAL RISKS EVEN AFTER THE JAN 1 ARMED UPRISING IN THE SOUTHERN STATE OF CHIAPAS THE INTERNATIONAL MARKET FOR MEXICAN SECURITIES DEBT INSTRUMENTS AND DIRECT INVESTMENTS QUICKLY REBOUNDED AND HAS REMAINED RELATIVELY STEADY SINCE BUT AS MEXICO APPROACHES AN AUGUST PRESIDENTIAL ELECTION WITH A DIZZYING ARRAY OF POSSIBLE OUTCOMES A DEGREE OF DISCOUNTING FOR POLITICAL RISK MAY BE IN ORDER THIS IS NOT TO SAY THAT THE CHIAPAS UPRISING WILL END IN DISASTER IN FACT THERE ARE SIGNS THAT THE DISTURBANCE IS ON THE WANE ON WEDNESDAY ZAPATISTA GUERRILLAS RELEASED AN EXGOVERNOR AND YESTERDAY THE GOVERNMENT'S CHIEF NEGOTIATOR IN CHIAPAS THE ONCE AND FUTURE PRESIDENTIAL HOPEFUL MANUEL CAMACHO ANNOUNCED THAT THE GUERRILLAS WOULD AT LAST JOIN HIM AT THE NEGOTIATING TABLE A SATISFACTORY RESOLUTION OF THAT CONFLICT AND A RECOGNIZABLY FAIR ELECTORAL OUTCOME IN AUGUST'S PRESIDENTIAL CONTEST COULD INCREASE THE POTENTIAL VALUE OF THE MEXICAN MARKET HOWEVER SO VARIED ARE THE POSSIBILITIES IN THE MEXICAN POLITICAL ARENA TODAY THAT NO OUTCOME IS GUARANTEED LEAST OF ALL THE ONE THAT USED TO BE A SURE BET THAT THE NEXT PRESIDENT OF MEXICO WILL BE FROM THE RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI IF YOU WERE WRITING A SCRIPT FOR PRESIDENT CARLOS SALINAS DE GORTARI'S REMARKABLE SIXYEAR TERM THE MOST ATTRACTIVE FINALE WOULD BE FOR MR SALINAS TO BECOME THE FIRST PRESIDENT IN MODERN MEXICO TO PASS EXECUTIVE POWER OVER TO A MEMBER OF THE OPPOSITION WHILE THE BULK OF HIS REVOLUTIONARY ECONOMIC CHANGES REMAINED INTACT THAT SCENARIO DISQUALIFIES THE MAN CHOSEN BY PRESIDENT SALINAS AS THE PRI'S STANDARDBEARER LUIS DONALDO COLOSIO IT ALSO RULES OUT OPPOSITION CANDIDATE CUAUHTEMOC CARDENAS WHOSE POPULIST ECONOMIC PLATFORM CLASHES WITH PRESIDENT SALINAS'S OPEN MARKET PROGRAM THE CANDIDATE OF THE CONSERVATIVE NATIONAL ACTION PARTY PAN DIEGO FERNANDEZ DE ZEVALLOS SHARES MANY OF THE PRESIDENT'S ECONOMIC CONVICTIONS BUT HE IS FAR DOWN IN THE POLLS THE MOST APPROPRIATE CHOICE FOR THIS IDEAL FINAL SCENE WOULD BE THE MAN PRESIDENT SALINAS PASSED OVER AS PRI CANDIDATE BUT CHOSE AS PEACE COMMISSIONER IN CHIAPAS MANUEL CAMACHO THE UNDECLARED BATTLE BETWEEN MESSRS COLOSIO AND CAMACHO IS THE TALK OF THE TOWN IN MEXICO AND HAS TURNED CONVENTIONAL POLITICAL THINKING UPSIDE DOWN I HAD A CHANCE TO CATCH UP WITH MR CAMACHO IN SAN CRISTOBAL WHERE HE IS WORKING AROUND THE CLOCK NEGOTIATING TERMS OF PEACE WITH ZAPATISTA GUERRILLAS EXPECTING TO PLAY A PINTERESQUE WORD GAME ABOUT HIS PRESIDENTIAL ASPIRATIONS I WAS SURPRISED AT HOW FORTHRIGHT HE STILL IS ABOUT WANTING TO BE PRESIDENT OF MEXICO MR CAMACHO WILL NOT DENY THAT HE IS RUNNING FOR PRESIDENT IN FACT HE SUGGESTS THAT HIS BARGAINING POSITION WITH THE GUERRILLAS IS IMPROVED IF HE IS PERCEIVED AS A CANDIDATE THAT'S NOT A RESOUNDING COMMITMENT TO RUN BUT IN THE CASE OF MEXICO WHERE PRI POLITICAL ASPIRANTS ARE EXPECTED TO IMMEDIATELY DROP THEIR BID ONCE A CANDIDATE HAS BEEN CHOSEN THIS IS A MUCH CLEARER INDICATION OF INTENT THAN THE OLD MARIO CUOMO SOFTSHOE THE QUESTION THAT LINGERS DELICIOUSLY ON THE TONGUES OF MEXICO'S POLITICAL CONSPIRACY THEORISTS IS WHY PRESIDENT SALINAS CHOSE THE EVERAMBITIOUS MR CAMACHO FOR THE HIGHPROFILE POSITION OF PEACE COMMISSIONER OF COURSE SINCE MR CAMACHO IS A MASTER OF POLITICAL NEGOTIATION WITH STRONG CONNECTIONS TO CHIAPAS HIS DECEASED WIFE'S FATHER WAS A GOVERNOR AND SAN CRISTOBAL BISHOP SAMUEL RUIZ IS A GOOD FRIEND HE WAS AN IDEAL CANDIDATE BUT MR CAMACHO'S JOB HAS BEEN AN ENORMOUS BOOST TO HIS VISIBILITY AT THE EXPENSE OF MR COLOSIO WHILE MR CAMACHO HAS BEEN ON THE FRONT PAGES FROM THE BEGINNING OF THE CHIAPAS CRISIS MR COLOSIO HAS BEEN STUCK ON THE INSIDE OF MOST NEWSPAPERS SINCE THE DAY HIS CAMPAIGN BEGAN IRONICALLY THE SAME DAY PRESIDENT SALINAS CHOSE MR CAMACHO AS PEACE COMMISSIONER SOME SEASONED VETERANS OF THE MEXICAN POLITICAL SCENE SEE THE SITUATION DIFFERENTLY THE LONGER THIS THING DRAGS ON THE WORSE IT WILL BE FOR CAMACHO SAYS COLUMNIST ADRIAN LAJOUS PEOPLE IN MEXICO ARE LIKE FOLKS EVERYWHERE THEY GET TIRED OF A STORY UNLESS THE CHIAPAS THING REALLY BLOWS UP AGAIN ATTENTION WILL EVENTUALLY VEER AWAY FROM CHIAPAS AND COLOSIO CAN TAKE CENTER STAGE AGAIN PERHAPS ON THE OTHER HAND IF THE CHIAPAS REVOLT IS RESOLVED SOON MR CAMACHO CAN REGISTER FOR THE PRESIDENCY BY THE MARCH 30 DEADLINE AND GET ON WITH THE RACE THERE HAS BEEN SOME TALK OF A COALITION BETWEEN THE CONSERVATIVE PAN AND MR CARDENAS'S DEMOCRATIC REVOLUTIONARY PARTY WITH MR CAMACHO AT THE HELM BUT MR CARDENAS WOULD NOT BE ENTHUSIASTIC ABOUT BEING BUMPED FROM THE TOP SLOT AND A NEW ELECTION LAW RULES OUT ELECTORAL COALITIONS PROBABLY MR CAMACHO WOULD BE FORCED TO CAMPAIGN UNDER THE BANNER OF A NEW OR REVAMPED PARTY IF CAMACHO HAD TO DO THAT SAYS ONE MEXICAN DIPLOMAT HE WOULD NEVER WIN AN ELECTION IS WON AT THE POLLS AND A MINOR PARTY DOESN'T HAVE THE INFRASTRUCTURE TO MONITOR THE 100000 POLLING BOOTHS WHILE THE CANDIDACY OF MR CAMACHO IS FRAUGHT WITH UNCERTAINTIES THE ALTERNATIVES ARE NOT TREMENDOUSLY APPEALING IF MR COLOSIO WINS WITH JUST THE SLIGHTEST HINT OF ELECTORAL FRAUD THE FORCES THAT BROUGHT THE ZAPATISTAS TO THE FORE ARE LIKELY TO TURN UP THE HEAT AGAIN AND A PRESIDENT COLOSIO MAY NOT BE AS ADEPT AT HANDLING A CRISIS LARGER THAN THE ONE THAT TESTED THE SKILLS OF PRESIDENT SALINAS IF MR CARDENAS WINS A POSSIBLE OUTCOME CONSIDERING HIS EXCELLENT SHOWING IN 1988 INVESTORS WOULD LIKELY FLEE MEXICO EN MASSE THIS WOULD PROBABLY FORCE AN INCREASE IN INTEREST RATES TO FORESTALL A RUN ON THE PESO AND THAT WOULD DEPRESS AN ECONOMY JUST BEGINNING TO RECOVER DESPITE THE DANGERS THERE IS A VISCERAL EXCITEMENT IN MEXICO THIS IS THE FIRST ELECTION SINCE THE REVOLUTION THAT'S TURNING INTO A REAL HORSE RACE THE PRESS HAS BECOME OPENLY CRITICAL EVEN THE USUAL HOUSE ORGANS LIKE EXCELSIOR AND OTHER NEWSPAPERS THAT USUALLY PRINT ALL THE NEWS THE PRI WANTS THEM TO PRINT ARE NOW TAKING FAR MORE INDEPENDENT POSITIONS THAN BEFORE OTHERS LIKE THE NEW REFORMA AND LA JORNADA ARE HAVING A FIELD DAY REPORTING CRITIQUES OF GOVERNMENT POLICIES THAT WOULD HAVE INVITED GOVERNMENT REPRISALS IN YEARS PAST WHAT IS CLEAR IS THAT MEXICO'S ECONOMIC OPENING CAN NO LONGER BE SUSTAINED IF GUARANTEES OF POLITICAL OPENNESS AND UNCONDITIONAL RESPECT FOR THE POLITICAL WILL OF MEXICANS ARE NOT FORTHCOMING WITHOUT SUCH GUARANTEES POLITICAL STABILITY CAN NO LONGER BE ASSURED AND WITHOUT POLITICAL STABILITY INVESTMENTS IN MEXICO CANNOT BE SECURED MR ASMAN EDITS THE AMERICAS COLUMN 9402180095 940218 POLITICS & POLICY CIVIL WAR BUFFS ACCUSE POWELL OF SWITCHING SIDES BY DOING DISNEY HISTORY PARK'S PUBLIC RELATIONS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CRY IS ALREADY GOING UP FROM CIVIL WAR PRESERVATIONISTS SAY IT AIN'T SO JODY POWELL MR POWELL WHO WAS JIMMY CARTER'S PRESS SECRETARY AND WHO NOW HEADS HIS OWN PUBLICRELATIONS FIRM HERE IS A CIVIL WAR BUFF HE BOASTS THAT NINE OF HIS ANCESTORS WORE THE BUTTERNUT AND GRAY IN THE NATION'S BLOODIEST WAR HE VOLUNTEERED HIS SERVICES IN 1988 IN THE FIGHT TO SAVE THE BULL RUN BATTLEFIELD IT'S CALLED MANASSAS IN VIRGINIA FROM BEING OVERWHELMED BY A HUGE SHOPPING MALL NOW MR POWELL HAS SIGNED ON WITH WALT DISNEY CO AS A PUBLICRELATIONS CONSULTANT FOR WHAT MANY PRESERVATIONISTS SEE AS AN EVEN BIGGER THREAT TO THE BATTLEFIELD THE PROPOSED 750 MILLION DISNEY'S AMERICA THEME PARK THE PLANNED DISNEY SITE 30 MILES FROM DOWNTOWN WASHINGTON IN LITTLE HAYMARKET VA IS FOUR MILES FROM THE BATTLEFIELD DISNEY'S AMERICA IS AN INSULT TO VIRGINIA SAYS 72YEAROLD ANNIE SNYDER THE GRAND MARSHAL OF BULL RUN PRESERVATION AND A LONGTIME FRIEND AND COMRADEINARMS OF MR POWELL IT'S THE MOST HISTORIC GROUND IN THE MOST HISTORIC STATE IN AMERICA THEY WILL DESTROY OUR BATTLEFIELD SHE DEEPLY REGRETS THAT MR POWELL HAS SIGNED ON WITH HER ENEMIES BUT SHE WON'T CRITICIZE HIM PERSONALLY SHE SAYS SHE FIGURES HE AND HIS FIRM POWELL TATE NEED THE BUSINESS STILL SHE AND HER COLLEAGUES REMEMBER THE JODY POWELL WHO STOOD WITH THEM WHEN THEY DEFEATED PLANS TO BUILD THAT SHOPPING MALL ON STUART'S HILL WHERE ROBERT E LEE SENT GENERAL JAMES LONGSTREET AND THE II CORPS CRASHING INTO THE UNSUSPECTING LEFT FLANK OF THE UNION ARMY IN THE SECOND BATTLE OF BULL RUN AND WHERE TODAY YOU CAN STILL SEE IT FEEL IT THAT BLOODSOAKED VALORHALLOWED PIECE OF VIRGINIA COUNTRYSIDE WHERE THE ENTIRE UNION TOTTERED ON THE BRINK OF DESTRUCTION THOSE ARE THE WORDS OF MR POWELL HE WROTE THEM IN A PASSIONATE ESSAY IN THE JULY/AUGUST 1988 ISSUE OF NATIONAL PARKS MAGAZINE IN THAT SAME ESSAY MR POWELL ASKED THIS RHETORICAL QUESTION WHAT IS THE PURPOSE OF PRESERVING A HISTORICAL SCENE IF THE AREA IS THEN INTRUDED UPON BY ADJACENT DEVELOPMENT MR POWELL 50 YEARS OLD SAYS HE THOUGHT LONG AND HARD BEFORE TAKING ON DISNEY'S AMERICA AS A CLIENT I LOOKED AT THE MAP AND AT MANASSAS ESPECIALLY THIS DISNEY PARK IS NOT GOING TO BE ADJACENT TO THE BATTLEFIELD IT'S FOUR MILES AWAY YOU WON'T SEE IT HEAR IT OR SMELL IT THAT'S A BIG DIFFERENCE FROM THAT SHOPPING MALL WHICH WAS SMACK ON THE BATTLEFIELD THEY WOULD HAVE BULLDOZED SOLDIERS' BONES FOR THE SHOPPING MALL MR POWELL ARGUES THAT DISNEY'S AMERICA IF IT IS BUILT WILL ENCOURAGE MORE VISITORS TO LOOK AT THE BATTLEFIELD AND I THINK THAT'S A PLUS IF YOU GO TO ALL THIS EFFORT TO PRESERVE A BATTLEFIELD YOU CAN'T BE OPPOSED TO MORE PEOPLE COMING TO SEE IT MR POWELL ALSO ARGUES THAT UNLIKE THE BATTLE OF THE SHOPPING MALL THE PRESERVATIONISTS NOW HAVE THE CASH AND THE EXPERTISE TO WAGE A VIGOROUS FIGHT AGAINST DISNEY LAST TIME THE OPPOSITION CONSISTED MOSTLY OF ANNIE SNYDER AND A FEW VOLUNTEERS LIKE HIMSELF NOW THE OPPOSITION IS BEING SPEARHEADED BY THE PIEDMONT ENVIRONMENTAL COUNCIL IN WARRENTON FOUNDED 22 YEARS AGO WITH THE HELP OF THE NATIONAL TRUST FOR HISTORIC PRESERVATION IT HAS ALREADY RAISED 400000 FROM SEVERAL BIG CONTRIBUTORS SOME OF THEM WITH CONNECTIONS TO THE PITTSBURGHBASED MELLON FORTUNE CHARLES WHITEHOUSE CHAIRMAN OF THE COUNCIL'S BOARD HAS WRITTEN SUPPORTERS MANY OF THEM LARGE ESTATE OWNERS IN THE AREA THAT WE ARE IN THE FIGHT OF OUR LIVES HERE WITH DISNEY AND PREDICTED HE WOULD NEED 1 MILLION BEFORE IT WAS OVER THE COUNCIL ALREADY HAS HIRED ITS OWN HIGHPOWERED PR FIRM WIDMEYER GROUP INC AND A BIGTIME LAW FIRM WILLIAMS & CONNOLLY BOTH OF WASHINGTON TO HELP MR POWELL SAYS HE FEELS GOOD ABOUT THE FACT THAT HIS OLD FRIENDS HAVE PUT TOGETHER A WELLFINANCED OPERATION THIS TIME MORE BROADLY MR POWELL CONTENDS THAT ECONOMIC DEVELOPMENT WAS HEADING FOR MANASSAS ANYWAY AND THAT PRESERVATIONISTS SIMPLY CAN'T ALWAYS OPPOSE IT DISNEY HE SAYS CONVINCED ME THAT THEY UNDERSTOOD ALL THESE CONCERNS AND THAT THEY WANTED TO ESTABLISH PARTNERSHIPS AND WORKING RELATIONSHIPS WITH RESPONSIBLE PEOPLE SOME OF MY OLD FRIENDS TELL ME POWELL YOU'RE A FOOL IT WON'T WORK OUT THAT WAY' BUT SO FAR IT'S WORKED OUT FINE AND I THINK THE COMPANY THAT PUT TOGETHER THE HALL OF PRESIDENTS AND EPCOT CENTER CAN DO THINGS THAT ARE HISTORICALLY ACCURATE AND SERIOUS MR POWELL HAS DONE HIS BIT TO PUT SOME OF THESE PARTNERSHIPS TOGETHER THE OTHER DAY HE TOOK A GROUP OF DISNEY EXECUTIVES HEADED BY THE PARK MANAGER MARK PACALA TO FREDERICKSBURG TO MEET WITH WILSON GREENE PRESIDENT OF THE ASSOCIATION FOR THE PRESERVATION OF CIVIL WAR BATTLE SITES A LAND TRUST THEY HAD A NICE TALK AND THE UPSHOT WAS THAT MR GREENE SIGNED ON AS A DISNEY CONSULTANT MR GREENE WON'T SAY HOW MUCH DISNEY OFFERED TO PAY HIS GROUP BUT HE SUGGESTS THAT IT WILL BE SUBSTANTIAL AND THAT THE DISNEY MONEY WILL BE USED TO BUY UP BATTLEFIELD LAND THAT IS UNDER THREAT ELSEWHERE WE WOULDN'T DO IT FOR FREE HE SAYS MR GREENE INSISTS THAT HE AND HIS ORGANIZATION HAVEN'T SOLD OUT TO DISNEY WE INTEND TO CHAMPION THE CONCERNS WE HAVE ABOUT THIS PROJECT HE INSISTS MRS SNYDER ISN'T BUYING THAT FOR A MINUTE I BLEW MY TOP SHE SAYS AND SO SHE SENT A DEAR WILL FAX TO MR GREENE I FAIL TO UNDERSTAND SHE SAID WHY APCWS WOULD BE WILLING TO ENDANGER MANASSAS AND OTHER NEARBY EXISTING BATTLEFIELDS TO RAISE MONEY TO PRESERVE OTHER BATTLEFIELDS SHE SAYS MR GREENE AND HIS ORGANIZATION WILL BE DISAPPOINTED THEY WON'T GET 'SUBSTANTIAL' MONEY FROM DISNEY FOR DISNEY JUST ISN'T IN THE HABIT OF GIVING AWAY MONEY THE DISNEY ORGANIZERS HAVE TAKEN ON A NUMBER OF OTHER CONSULTANTS DISNEY'S AMERICA ANNOUNCED EARLIER THIS WEEK THAT IT HAS HIRED COLUMBIA UNIVERSITY HISTORIAN ERIC FONER TO HELP THE DISNEY DESIGNERS CREATE THE PARK MR FONER WHO IS AT ENGLAND'S OXFORD UNIVERSITY FOR THE FULL COLLEGE YEAR EARLIER HELPED DESIGN THE HALL OF PRESIDENTS SHOW AT WALT DISNEY WORLD IN FLORIDA THE DISNEY PEOPLE TRIED TO HIRE CIVIL WAR HISTORIAN SHELBY FOOTE TOO BUT HE DECLINED HISTORICAL POPULARIZATION IS AN EASY THING TO DEFEND HE SAYS BUT I DIDN'T WANT TO HAVE ANYTHING TO DO WITH IT MR FOOTE WAS THE STAR NARRATOR IN THE CIVIL WAR SERIES FILMED BY KEN BURNS FOR THE PUBLIC BROADCASTING SYSTEM JODY POWELL'S VOICE WAS HEARD IN THAT SERIES TOO HE PLAYED STONEWALL JACKSON 9402180093 940218 INTERNATIONAL JAILED ITALIAN FINANCIER STILL CAN SWAY A LAWSUIT AGAINST CREDIT LYONNAIS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FROM HIS CELL IN A GENEVA JAIL FLORIO FIORINI IS CASTING A LONG SHADOW OVER FRANCE'S BIGGEST BANK STATEOWNED CREDIT LYONNAIS MR FIORINI AN ITALIAN FINANCIER WITH A NOTORIOUS REPUTATION IN HIS OWN COUNTRY IS BEST KNOWN IN THE US FOR HIS ROLE IN THE DISASTROUS 1990 TAKEOVER OF METROGOLDWYNMAYER INC BY HIS COMPATRIOT GIANCARLO PARRETTI HE HAS BEEN HELD IN JAIL IN SWITZERLAND FOR MORE THAN A YEAR FACING CHARGES OF FRAUDULENT BANKRUPTCY FOLLOWING THE COLLAPSE IN OCTOBER 1992 OF HIS OWN SWISS COMPANY SASEA HOLDING SA CREDIT LYONNAIS WHICH HELPED TO FINANCE THE MGM TAKEOVER AND NOW OWNS THE FILM STUDIO BECAME A MAJOR LENDER TO MR FIORINI'S SWISS COMPANY IN ITS FINAL MONTHS EVER SINCE SASEA COLLAPSED WITH DEBTS OF FIVE BILLION SWISS FRANCS 344 BILLION THE BANK HAS BEEN SPARRING WITH SWISS AUTHORITIES OVER ITS PRECISE ROLE IN THE COMPANY AND ITS FAILURE THAT SPARRING HAS NOW TURNED INTO OPEN WARFARE THE SWISS MAGISTRATE CHARGED WITH THE CASE JEANLOUIS CROCHET THIS WEEK PUBLICLY ANNOUNCED HE INTENDS TO SEEK THE INDICTMENT OF THE FORMER CHAIRMAN OF CREDIT LYONNAIS JEANYVES HABERER AND A TOP EXECUTIVE STILL WITH THE BANK FRANCOIS GILLE ALLEGING THAT CREDIT LYONNAIS WAS THE DE FACTO ADMINISTRATOR OF SASEA AT THE TIME OF ITS COLLAPSE THE JUDGE ALSO REMOVED THE BANK'S RIGHT TO BE A CIVIL PARTY TO THE CRIMINAL BANKRUPTCY PROCEEDINGS THE SWISS DECISION CAME SHORTLY AFTER MR GILLE DURING A LONG AND TENSE HEARING IN GENEVA CALLED JUDGE CROCHET A THUG TO HIS FACE CREDIT LYONNAIS INSISTS THAT IT IS A VICTIM NOT A PERPETRATOR OF SASEA'S BANKRUPTCY AND IT STRENUOUSLY DENIES PLAYING ANY HANDSON MANAGEMENT ROLE THE BANK IN TURN HAS REQUESTED THAT THE JUDGE BE EXCUSED FROM THE CASE A SPOKESMAN SAYS MR GILLE HAS APOLOGIZED FOR HIS INSULT THE PRACTICAL EFFECTS OF SUCH LEGAL SQUABBLING MAY BE LESS DIRE THAN THEY SOUND UNLESS THEY GO TO SWITZERLAND WHERE THEY ARE LIABLE TO BE ARRESTED NEITHER MR HABERER NOR MR GILLE FACES ACTUAL INDICTMENT FOR THAT TO HAPPEN FRENCH AUTHORITIES WOULD HAVE TO ACCEPT THE SWISS REQUEST WHICH LAWYERS SAY IS UNLIKELY THE BANK TOO SAYS THE ONGOING SAGA WON'T HAVE MUCH IMPACT ON ITS FUTURE EARNINGS IT HAS ALREADY COVERED ALL BUT 500 MILLION FRENCH FRANCS 852 MILLION OF ITS 47 BILLION FRENCH FRANC EXPOSURE TO SASEA AND ITS SUBSIDIARIES WITH LOANLOSS PROVISIONS IN ITS 1992 ACCOUNT NONETHELESS BEING DEPRIVED OF ITS CIVIL RIGHTS IN THE BANKRUPTCY CASE IS A BLOW CREDIT LYONNAIS ACKNOWLEDGES BECAUSE IT MEANS THE BANK WILL NO LONGER HAVE ACCESS TO ANY OFFICIAL DOCUMENTATION IN THE CASE THE AFFAIR MOREOVER BRINGS UNWELCOME PUBLICITY TO THE BANK AND ITS NEW CHAIRMAN JEAN PEYRELEVADE WHO SUCCEEDED MR HABERER IN NOVEMBER WITH THE MANDATE TO CLEAN UP ITS REPUTATION AS WELL AS ITS FINANCES IN PREPARATION FOR ITS EVENTUAL PRIVATIZATION THE CASE MAY ALSO HAVE REPERCUSSIONS IN THE US WHERE CREDIT LYONNAIS IS STILL FIGHTING SEVERAL LEGAL BATTLES OVER MGM WITH FINANCIER KIRK KERKORIAN MR KERKORIAN'S LAWYERS ARE WATCHING THE SASEA WRANGLES CLOSELY AND HAVE BEEN IN TOUCH WITH VARIOUS PARTIES IN THE SWISS CASE TO SEE IF THEY CAN FIND FURTHER AMMUNITION FOR THEIR OWN LEGAL BATTLE AGAINST CREDIT LYONNAIS THE LATEST TWIST TO THE CASE IS ABOVE ALL A PARTIAL VINDICATION OF MR FIORINI A PORTLY 53YEAROLD DESCRIBED AS BRILLIANT BY HIS FRIENDS AND MACHIAVELLIAN BY HIS DETRACTORS BY ACCUSING THE FRENCH BANK OF EFFECTIVELY RUNNING SASEA IN ITS FINAL DAYS JUDGE CROCHET HAS IN FACT BORROWED MR FIORINI'S OWN DEFENSE EVER SINCE HE WAS JAILED 15 MONTHS AGO THE ITALIAN HAS INSISTED THAT THE BANK AND NOT HE BEARS THE RESPONSIBILITY FOR SASEA'S SPECTACULAR FAILURE IT IS A CHARGE HE HAS REPEATED FREQUENTLY SINCE BEING JAILED WRITING HIS SIDE OF THE STORY IN A BOOK OF MEMOIRS AND IN SEVERAL ARTICLES FOR ITALIAN MAGAZINES HIS LAWYER MARC BONNANT SAYS MR FIORINI HAS ALWAYS ARGUED THAT HE KNEW SASEA WAS OVEREXTENDED AS EARLY AS 1991 MORE THAN A YEAR BEFORE IT EVENTUALLY COLLAPSED BUT MR FIORINI ALLEGES THAT IT WAS CREDIT LYONNAIS THAT INSISTED HE SHOULDN'T WIND UP THE COMPANY THERE AND THEN AND PROVIDED FINANCIAL SUPPORT TO KEEP SASEA GOING THERE IS NOW REASON TO THINK THAT MR FIORINI'S POINT OF VIEW IS ALSO THE POINT OF VIEW ADOPTED BY SWISS JUSTICE MR BONNANT SAID IN A TELEPHONE INTERVIEW IN A FURY CREDIT LYONNAIS LAWYERS AGREE WITH THAT ASSESSMENT THEY COMPLAIN BITTERLY THAT THE JUDGE HAS SPENT MORE TIME DELVING INTO THE FRENCH BANK THAN INTO MR FIORINI'S AFFAIRS THE 15 MONTHS SPENT IN JAIL DON'T SEEM TO HAVE DAMPED MR FIORINI'S SPIRITS ACCORDING TO TWO PEOPLE WHO HAVE VISITED HIM RECENTLY ACCORDING TO MR BONNANT HOWEVER THERE ARE NO PLANS TO RELEASE HIM ANYTIME SOON HE IS BEING HELD IN PREVENTIVE DETENTION UNDER SWISS LAW A SUSPECT IN A MAJOR AND COMPLICATED CASE CAN BE DETAINED FOR AN UNLIMITED PERIOD UNTIL MAGISTRATES HAVE COMPLETED WORK ON THE CASE MR FIORINI FIRST ACHIEVED NOTORIETY IN ITALY WHERE HE BECAME EMBROILED IN THE BANCO AMBROSIANO SCANDAL IN THE EARLY 1980S WHILE STILL WORKING AS CHIEF FINANCIAL OFFICER FOR THE STATEOWNED ENERGY CONGLOMERATE ENI BECAUSE OF THAT AFFAIR HE LEFT ENI UNDER A CLOUD BUT SOON REEMERGED BY ACQUIRING SASEA AN OLD AND VIRTUALLY DEFUNCT SWISS COMPANY THAT WAS STILL LISTED ON THE STOCK MARKET CREDIT LYONNAIS FIRST PROVIDED SUPPORT TO SASEA THROUGH ITS ERRANT DUTCH SUBSIDIARY THE SAME SUBSIDIARY THAT FINANCED MR PARRETTI'S ACQUISITION OF MGM SASEA WAS A SUBSTANTIAL INVESTOR IN THAT TRANSACTION AND A RECENT BOOK BY FRANCOIS D'AUBERT A FRENCH MEMBER OF PARLIAMENT DESCRIBES MR FIORINI AS THE BRAINS BEHIND THE TAKEOVER FOR ITS PART CREDIT LYONNAIS HAS SAID ITS DUTCH SUBSIDIARY DISOBEYED EXPLICIT COMMANDS FROM THE FRENCH HEAD OFFICE NOT TO FINANCE EITHER MR PARRETTI OR SASEA IN THE MGM TRANSACTION THE MGM TAKEOVER TURNED SOUR AND CREDIT LYONNAIS ENDED UP TAKING OVER THE STUDIO EVEN SO WHEN SASEA SEEMED ON THE ROPES IN THE FALL OF 1991 SOME MONTHS LATER CREDIT LYONNAIS STEPPED IN THIS TIME WITH THE HEAD OFFICE'S PERMISSION BANK OFFICIALS SAY THE FRENCH BANK ENDED UP ARRANGING A BIG RESTRUCTURING PLAN FOR SASEA IT NOW SAYS IN OFFICIALLY RELEASED DOCUMENTS THAT IT WAS DELIBERATELY DECEIVED BY MR FIORINI ABOUT THE EXTENT OF SASEA'S PROBLEMS FOR EXAMPLE THE SWISS COMPANY'S OFFICIAL ACCOUNTS TO JUNE 1991 SHOWED EQUITY CAPITAL TOTALING 160 MILLION SWISS FRANCS AND ASSETS VALUED AT 115 BILLION SWISS FRANCS SEVERAL MONTHS LATER THAT MONEY IF IT EVER EXISTED HAD DISAPPEARED CREDIT LYONNAIS CLAIMS AND IN A PUBLIC STATEMENT ACCUSES MR FIORINI OF CREATING A HOUSE OF CARDS THE BANK HAS ALSO FILED SUIT AGAINST SASEA'S AUDITORS KPMG PEAT MARWICK WHICH SIGNED OFF ON THE 1991 ACCOUNTS KPMG DENIES ANY WRONGDOING ONE OF THE MANY MYSTERIES IN THE AFFAIR IS WHY CREDIT LYONNAIS CONTINUED TO SUPPORT MR FIORINI FOR SO LONG EVEN THOUGH IT HAD ALREADY BEEN SEVERELY BURNED BY MR PARRETTI HIS PARTNER 9402180091 940217 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY IS THERE A PLACE IN WINTER GAMES FOR MEN WHO RUN WITH DOGS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER WITH A YELP OF DELIGHT THE CROSSCOUNTRY SKI CHAMPION GAZES AT THE NEARBY OLYMPIC FLAME AND SAVORS HIS VICTORY ROLLING ONTO HIS BACK HE WRIGGLES HAPPILY WITH HIS LEGS IN THE AIR THEN HE JOGS TRIUMPHANTLY BACK TO THE ATHLETES' TENT PAUSING TO LIFT HIS LEG ALONG THE RACECOURSE FENCE MEET SPOT WINNER OF THE 1994 OLYMPIC PULKA COMPETITION IN A BIG MEADOW BELOW THE SKIJUMP STADIUM SPOT AND A TOWN JUDGE NAMED CHRISTIAN LUNDIN BEAT A DOZEN RIVAL PULKA TEAMS SPOT A GERMAN POINTER PULLS A LITTLE SLED CARRYING 25 KILOGRAMS OF WEIGHTS BEHIND THE SLED A ROPE CONNECTS TO A BELTHOOK ON MR LUNDIN WHO SKIS FURIOUSLY TO MATCH SPOT'S PACE JUST METERS AWAY HORDES OF FLAGWAVING SKI FANS CHEER AND RING COWBELLS BUT THEY ARE ALL COMING FROM THE MORNING'S 30KILOMETER CROSSCOUNTRY RACE JUST OVER THE HILL FEATURING DOGLESS MEN SAVE FOR A FEW DOZEN SERIOUS PULKA FANS NO ONE WAS THERE TO SEE SPOT RUN MR LUNDIN'S DOG MAY YET HAVE HIS DAY UNDER THE BANNER OF THE INTERNATIONAL FEDERATION OF SLEDDOG SIC SPORTS THE PULKA FANS APPLIED IN THE FALL FOR FORMAL RECOGNITION BY THE INTERNATIONAL OLYMPIC COMMITTEE THE IFSS WANTS A PLACE IN THE OLYMPICS FOR THE TRADITIONAL SCANDINAVIAN SPORT OF PULKA AND FOR CLASSIC SLED RACES WITH TEAMS OF DOGS THE ORGANIZERS OF THE LILLEHAMMER GAMES GAVE THE SLEDDERS A NICE PUSH MAKING THEM AN OFFICIAL PART OF THE OLYMPIC CULTURAL PROGRAM AND GRANTING THEM SOME SUPERB REAL ESTATE ALONG WITH THE PULKA POINTERS 800 ALASKAN HUSKIES AND THEIR MUSHERS ARRIVED HERE THIS WEEK THEIR CHORUS OF HOWLS AUDIBLE FROM THE LYGARDSBAKKENE SKI JUMP TO THE HAKON HALL HOCKEY RINK ON TUESDAY THE DOGS DESCENDED ONTO THE OLYMPIC PARK MEDALCEREMONY ARENA TO START A THREEDAY 500KILOMETER RACE TO THE TOWN OF ROROS NORWAY SURROUNDED HERE BY OLYMPIC GOLD THE PULKA RACERS AND THE CLASSIC MUSHERS ARE SALIVATING FOR INTERNATIONAL ACCEPTANCE WE BELONG IN THE OLYMPIC GAMES SAYS IFSS OFFICIAL BOB LEVORSEN WHO TRAVELED HERE FROM NOVATO CALIF WE'RE A PHYSICAL COMPETITIVE SPORT WE COMPLY WITH THE OLYMPIC IDEALS MUCH MORE THAN TONYA HARDING THE SPORT DOES HAVE ITS SHARE OF FEISTY ATHLETES BUT THEY ARE EASY TO HANDLE FLINK JENTE FLINK JENTE SAYS 18YEAROLD ANDERS HAUGER TO HIS TAILWAGGING TEAMMATE NINJA GOOD GIRL GOOD GIRL WEARING RACING TIGHTS WITH A PURINA LOGO HIS FACE CRUSTED WITH FROZEN SPIT MR HAUGER HAS JUST WON THE 5KILOMETER PULKA JUNIOR DIVISION IT'S VERY IMPORTANT YOU PRAISE THE DOG HE SAYS PULKA EVOLVED FROM THE LAPP PRACTICE OF USING A DOG AND A SMALL DINGHYSHAPED SLED TO TRANSPORT THINGS OVER THE SNOW IN HIS HOMETOWN OF LORENSKOG SOUTH OF OSLO MR HAUGER TRAINS WITH NINJA YEARROUND IN THE SUMMER NINJA PULLS HIM UP HILLS ON A BICYCLE HE ALSO ROWS A BOAT WHILE NINJA PADDLES ALONGSIDE THE SLEDDING FEDERATION IS QUICK TO POINT OUT THAT DOGSLEDDING IS HARDLY A NORWEGIAN ODDITY DODO PERRI IS HERE THIS WEEK FROM COURMAYEUR ITALY REPRESENTING THE AIM ASSOCIAZIONE ITALIANA MUSHER SO IS JOE REDINGTON AGE 77 OF WASILLA ALASKA IN 1973 HE FOUNDED THE WORLD'S MOST FAMOUS DOGSLED RACE THE 1132MILE IDITAROD FROM ANCHORAGE TO NOME I'VE DONE NOTHING BUT DOGMUSHING SINCE 1948 HE SAYS SIPPING INSTANT CAPPUCCINO WHILE HIS HUSKIES SQUEAL AND STRAIN AT THEIR HARNESS I ALWAYS FELT IT SHOULD BE PART OF THE OLYMPICS THE SLEDDERS' OLYMPIC PETITION DECLARES THE SPORT HAS 10396 DRIVERS AROUND THE WORLD WHO COMPETED IN 2935 SLED RACES IN THE PAST TWO YEARS THERE WERE 542 IN ALASKA 289 IN SWEDEN 47 IN JAPAN AND 10 IN SOUTH AFRICA WHERE DOGS PULL CARTS ON DRY LAND OLYMPIC OFFICIALS AREN'T COUNTING THE SLEDDERS OUT WE RECOGNIZE HORSE RIDING WHICH IS ALSO WITH ANIMALS SO WHY NOT SAYS GILBERT FELLI SPORT DIRECTOR FOR THE IOC HERE AT THE LILLEHAMMER CAMP MUSHER THORATLE SVORTEVIK PREPARES HIS LEAD HUSKIES JAPPA AND NUNO FOR THE 500KILOMETER RACE AND ARGUES THAT IT WILL REQUIRE A TRULY OLYMPIAN EFFORT IT'S NOT THE CASE THAT I'M STANDING THERE AND LOOKING AT THE STARS SAYS MR SVORTEVIK A SCHOOLTEACHER FROM KIRKENES IN FARNORTHERN NORWAY I WILL LOSE FOUR KILOGRAMS DURING THIS RACE A MUSHER MUST OFTEN RUN ALONGSIDE HIS SLED OR PUSH IT UPHILL OR RIDE IT LIKE A SCOOTER PUSHING OFF WITH ONE LEG LOOK AT BOBSLED THIS IS A LOT MORE PHYSICAL SCOFFS MR SVORTEVIK I'M VERY GLAD FOR BOBSLEDS THAT THEY'RE IN THE OLYMPICS BUT WHY NOT THIS 9402180089 940218 PERELMAN CONSOLIDATES SOME PROPERTIES AS PART OF HIS PLANS FOR MEDIA EMPIRE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTOR RONALD PERELMAN IS CONSOLIDATING SEVERAL MEDIA PROPERTIES AS HE PROWLS FOR NEW ACQUISITIONS IN A BID TO BUILD A LARGE ENTERTAINMENT BUSINESS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION EARLIER THIS WEEK MR PERELMAN CONFIRMED AMBITIOUS PLANS FOR HIS MEDIA EMPIRE WHICH INITIALLY WILL COMBINE A GROUP OF SEVEN TELEVISION STATIONS OWNED BY SCI TELEVISION INC WITH TWO PERELMAN COMPANIES NEW WORLD ENTERTAINMENT A TELEVISIONPROGRAM COMPANY AND FOUR STAR INTERNATIONAL A FILM LIBRARY THE NEW ENTITY WHICH WILL BE CALLED NEW WORLD COMMUNICATIONS GROUP INC WILL ACQUIRE THE LATTER TWO COMPANIES FOR STOCK IN ADDITION THE NEW COMPANY INTENDS TO ACQUIRE ALL OF GENESIS ENTERTAINMENT INC A TVSYNDICATION BUSINESS 50OWNED BY PERELMAN COMPANIES MR PERELMAN'S 375 INTEREST IN GUTHYRENKER CORP AN INFOMERCIAL COMPANY AND AN INHOUSE ADVERTISING BUSINESS NEW WORLD COMMUNICATIONS' VOTING CONTROL WILL BE IN ITS CLASS B SHARES WHICH WILL HAVE 10 VOTES EACH THE CAPITAL STRUCTURE ALSO PERMITS ISSUANCE OF CLASS A SHARES WHICH THE FILING SAYS MIGHT BE LISTED ON THE NEW YORK STOCK EXCHANGE OR THE NASDAQ MARKET MR PERELMAN'S ANDREWS GROUP INC WILL HOLD AT LEAST 51 OF THE NEW COMPANY AFTER THE VARIOUS TRANSACTIONS ON A PRO FORMA BASIS THE COMPANY WOULD HAVE 630 MILLION OF DEBT AND THE FILING SAYS FUNDS FROM OPERATIONS WOULDN'T BE SUFFICIENT TO MAKE DEBT PAYMENTS THE FILING ALSO SAYS THE COMPANY MIGHT REFINANCE SELL SOME ASSETS OR SEEK TO RAISE ADDITIONAL DEBT OR CAPITAL ON A PRO FORMA BASIS NEW WORLD WOULD HAVE HAD NET LOSSES BEFORE EXTRAORDINARY ITEMS AND AN ACCOUNTING CHANGE OF 215 MILLION FOR THE NINE MONTHS ENDED SEPT 30 AS PART OF THE TRANSACTION SCI TELEVISION AND RELATED ENTITIES ARE PROPOSING A RIGHTS OFFERING TO SCI SHAREHOLDERS THAT COULD RAISE AS MUCH AS 1858 MILLION PROCEEDS WILL BE USED TO HELP PURCHASE AS MANY AS FIVE MORE NETWORKAFFILIATED TELEVISION STATIONS IN THE TOP 25 US TV MARKETS THE FILING SAID MR PERELMAN OWNS A 54 INTEREST IN SCI TELEVISION MR PERELMAN HAS TAKEN SEVERAL MOVES LATELY TO ACQUIRE AND REPOSITION MEDIA PROPERTIES HIS MACANDREWS & FORBES HOLDINGS INC ACQUIRED THE STAKE IN GUTHYRENKER AND MACANDREWS OFFICIALS HAVE SAID THE COMPANY WILL SPEND 1 BILLION OVER TWO YEARS TO BUILD A REAL ENTERTAINMENT COMPANY ACCORDING TO THE SEC FILING APOLLO ADVISORS CONTROLLED BY INVESTOR LEON BLACK HAS AN AGREEMENT IN PRINCIPLE TO INVEST ABOUT 60 MILLION IN SCI AND ANDREWS GROUP THIS IS UNPRECEDENTED SAYS ANDREW FREDMAN MANAGING DIRECTOR AT ASSOCIATED CAPITAL A NEW YORK INVESTMENT FIRM THAT OWNS SCI SHARES I'VE NEVER SEEN APOLLO PUT FRESH MONEY IN A VENTURE WITHOUT IMMEDIATE INTENTIONS TO SELL AND MOVE ON WHILE MR PERELMAN'S VENTURE IS NO PARAMOUNT IT'S AN EMBRYONIC ENTERTAINMENT COMPANY AND A CHEAP ASSET AN AFFILIATE OF APOLLO CURRENTLY OWNS ABOUT 8 OF SCI'S OUTSTANDING COMMON STOCK MR PERELMAN'S HOLDINGS INCLUDE MARVEL ENTERTAINMENT GROUP WHICH PUBLISHES MARVEL COMICS FLEER TRADING CARDS AND TOY BIZ TOYS MR FREDMAN BELIEVES THAT MR PERELMAN STANDS TO PROFIT HANDSOMELY BY COMBINING HIS DIVERSE PROGRAMMING HOLDINGS WITH TV AND DISTRIBUTION OPERATIONS HE NOTES THAT THE PRODUCTION COMPANY IS ALREADY RAMPING UP TV SHOWS BASED ON MARVEL CHARACTERS THIS GUY WANTS TO BE LIKE DISNEY WORLD SAYS MR FREDMAN UNDER TERMS OF THE RIGHTS OFFERING SCI SHAREHOLDERS WILL BE OFFERED THE RIGHT TO PURCHASE ABOUT 19 SHARES OF CLASS B STOCK IN THE NEW COMPANY NEW WORLD COMMUNICATIONS GROUP INC FOR EACH SHARE OF CLASS B STOCK AT A PRICE OF 847 A SHARE JAMES T CONROY A SENIOR VICE PRESIDENT AT MACANDREWS & FORBES SAID THE RIGHTS OFFERING WAS MEANT TO PROTECT THE HOLDINGS OF CERTAIN MINORITY SHAREHOLDERS IN NEW WORLD COMMUNICATIONS WHO OTHERWISE WOULD SEE THEIR EQUITY STAKES DILUTED AS A RESULT OF THE TRANSACTIONS HE SAID MR PERELMAN WON'T RECEIVE ANY RIGHTS UNDER THE OFFERING 9402180088 940218 MARKETING & MEDIA QVC CHANGES NAME SHUFFLES STAFF CREATES UNITS AFTER PARAMOUNT LOSS BY MARK ROBICHAUX AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL JUST TWO DAYS AFTER LOSING THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC QVC NETWORK INC CHAIRMAN BARRY DILLER HAS CAST HIS GAZE INWARD RESTRUCTURING THE HOMESHOPPING COMPANY TO BETTER POSITION IT FOR FUTURE GROWTH BESIDES SHORTENING ITS CORPORATE MONIKER TO QVC INC THE WEST CHESTER PA COMPANY CREATED SEVERAL NEW DIVISIONS AND ANNOUNCED NUMEROUS STAFF CHANGES AMONG OTHER THINGS IT CREATED QVC ELECTRONIC RETAILING AS ITS PRINCIPAL OPERATING UNIT AND NAMED AS ITS PRESIDENT DOUGLAS BRIGGS PREVIOUSLY A QVC EXECUTIVE VICE PRESIDENT THE COMPANY ALSO UNVEILED ANOTHER NEW UNIT DUBBED QVCINTERACTIVE WHICH WILL DEVELOP NEW INTERACTIVE SERVICES SUCH AS ONLINE COMPUTER SHOPPING SERVICES STEPHEN TOMLIN A FORMER WALT DISNEY CO EXECUTIVE WHO JOINED THE COMPANY FIVE MONTHS AGO WILL HEAD THAT UNIT QVC SAID IT EXPECTS TO LAUNCH THE FIRST INTERACTIVE SERVICES IN EARLY 1995 AS PART OF THE REORGANIZATION QVC'S LONGTIME PRESIDENT MICHAEL BOYD ANNOUNCED HIS RETIREMENT HAVING DELAYED IT FOR FIVE MONTHS WHILE QVC WAS ENGAGED IN THE LOSING BATTLE WITH VIACOM INC FOR CONTROL OF PARAMOUNT ANALYSTS HAD BEEN EXPECTING THE REORGANIZATION AND SOME SAID THE TIMING OF THE ANNOUNCEMENT WAS INTENDED TO EMPHASIZE THAT QVC PLANS TO AGGRESSIVELY TEND TO ITS CORE BUSINESS IN THE WAKE OF THE PARAMOUNT DISTRACTION IT'S JUST TO SAY WE'RE HERE AND GETTING ON WITH LIFE SAYS CRAIG BIBB AN ANALYST WITH PAINEWEBBER IN ADDITION QVC UNVEILED A NEW DIVISION CALLED QDIRECT TO PRODUCE 60SECOND AND 120SECOND DIRECTRESPONSE ADS AND 30MINUTE INFOMERCIALS THE MOVES ARE AN AMBITIOUS ATTEMPT TO EXPAND THE HOMESHOPPING MARKET BEYOND ITS CURRENT AUDIENCE TO MOREAFFLUENT CUSTOMERS CURRENTLY FEWER THAN 10 OF HOME SHOPPING VIEWERS ACTUALLY BUY ANYTHING SOLD ON SUCH SHOWS QVC PROMOTED SEVERAL OTHER EXECUTIVES IN ALMOST EVERY DIVISION FROM MERCHANDISING TO MARKETING WITH AN EYE TOWARD EXPANDING THE NETWORK AS THE FUTURE OF INTERACTIVE SHOPPING EVOLVES QVC SAID IT PLANS TO BE A ELECTRONIC GREENHOUSE OF SORTS THAT WILL TEST NEW PROGRAM CONCEPTS AND CHANNELS IT SAID IT WOULD ROLL OUT THE FIRST OF THESE NEW SERVICES LATER THIS YEAR WITH A CHANNEL CALLED Q2 A LIFESTYLES SERVICE DEVOTED TO MOREACTIVE AND MOREAFFLUENT TV SHOPPERS THE COMPANY ALSO HAS LAUNCHED HOMESHOPPING VENTURES IN MEXICO AND LONDON WITH PLANS TO CONTINUE ITS GLOBAL EXPANSION 9402180087 940218 LEISURE & ARTS BOOKSHELF JOE QUEENAN TAKES ON TINSELTOWN BY MANUELA HOELTERHOFF DO YOU THINK JOE QUEENAN COULD NOT REVIEW MY BOOK WE HEAR THAT REQUEST NOW AND AGAIN AT THE JOURNAL BUT WE DO OUR BEST TO KEEP JOE BUSY THOUGH THAT STILL LEAVES HIM PLENTY OF TIME TO WRITE FOR OTHER PUBLICATIONS ON ANY NUMBER OF SUBJECTS FROM THE GUITAR TO THE SLOW DEATH OF THE DEMOCRATIC PARTY I'M TOLD HE ONCE TOTTED UP THE LARGEST NUMBER OF ARTICLES WRITTEN BY A HUMAN IN ONE YEAR I DON'T DOUBT IT WRITER'S BLOCK DOESN'T AFFLICT HIM IF YOU'RE TALKING TO ME YOUR CAREER MUST BE IN TROUBLE MOVIES MAYHEM AND MALICE HYPERION 267 PAGES 2295 PULLS TOGETHER HIS FREELANCE HOLLYWOOD PIECES MOSTLY FROM THAT RAFFISH UPSTART MAGAZINE MOVIELINE IN WHICH HE AMONG OTHER THINGS IDENTIFIES AN OBSESSION WITH HEAD TRAUMA AS A PRINCIPAL THEME IN THE WORK OF OLIVER STONE AND ENDURES AN AGONIZING ALGEBRA LESSON WITH AN AGING CHILD STAR HERE ARE SOME EXCERPTS PLEASE DESCRIBE YOURSELF BASICALLY I WAS A JOURNALIST WHO ONLY DEALT IN TROUBLED MERCHANDISE WHO ONLY GOT TO MEET MOVIE STARS WHEN THEY THEMSELVES HAD A GUN COCKED TO THEIR HEADS BY THEIR STUDIOS AND WERE LITERALLY FORCED TO GO OUT AND DO INTERVIEWS WITH UNPLEASANT PEOPLE THEY WERE FORCED TO DO INTERVIEWS WITH PEOPLE LIKE ME BECAUSE THEY HAD MEGADUDS IN THE CAN NAME ONE BEASTMASTER III NOT UNTIL WE PASS THROUGH THE PEARLY GATES AND MEET OUR MAKER WILL ANY OF US EVER KNOW WHY GOD CREATED RYAN O'NEAL WHAT PIVOTAL ROLE MARIEL HEMINGWAY IS PLAYING IN THE ALMIGHTY'S MASTER PLAN AND TO WHAT EXTENT SATAN HIMSELF WAS INVOLVED IN THE FINAL EDITING OF BEASTMASTER III WHY DO YOU OFTEN REPEAT UNKIND REMARKS ABOUT PEOPLE WHO NEVER HARMED YOU SAY THE CASTING OF CHARLOTTE RAMPLING AS AN INTELLECTUAL MARINE BIOLOGIST OR KATHLEEN TURNER'S WEIGHT PROBLEM THIS IS NOT THE RESULT OF AN EDITING OVERSIGHT RATHER THIS REPETITION OF CERTAIN PEJORATIVE REMARKS STEMS FROM MY PERSONAL BELIEF THAT IT IS IMPOSSIBLE TO REMIND THE PUBLIC TOO OFTEN THAT DIANE KEATON IS A REALLY AWFUL ACTRESS JUST AS IT IS IMPOSSIBLE TO MAKE TOO MANY NASTY REMARKS ABOUT SHORT BAD ACTORS RELATED TO MARTIN SHEEN INSPIRED BY WOODY ALLEN AND HIS LOVE FOR A NYMPH YOU ASSEMBLED THE HOME NYMPHET VIDEO COLLECTION CONTAINING SUNSET SABRINA LOLITA AND VOYAGER WHICH STARRED SAM SHEPHERD AS A HYDROELECTRICAL ENGINEER WHO SHOULD BUY THIS COLLECTION DESPITE THEIR ABSURD PLOTS THEIR HORRIBLE SCRIPTS THEIR EIGHTHRATE ACTING AND VINCENT SPANO THESE FILMS VIEWED AS A UNIT PROVIDE AN INDISPENSABLE MORAL COMPASS THAT HORNY MIDDLEAGED MEN EVERYWHERE CAN USE WHEN REACHING A DECISION ABOUT PREYING ON WOMEN WHO ARE OLD ENOUGH TO BE THEIR CHILDREN GRANDCHILDREN GREATGRANDCHILDREN OR NIECES ONCE REMOVED BY MARRIAGE HAD WOODY ALLEN LOOKED AT THESE FILMS OR LOOKED AT THEM MORE CAREFULLY HE WOULD HAVE BEEN LESS RECKLESS IN MAKING THE DECISION TO ABANDON MS FARROW AND TAKE UP WITH ONE OF HER NUMEROUS UNITED COLORS OF BENETTON DAUGHTERS WHAT CAN YOU TELL US ABOUT SUSAN SARANDON'S BELIEFS LIKE MANY PEOPLE WHO HAVE VILLAS IN ITALY APARTMENTS IN NEW YORK AND GOOD JOBS IN HOLLYWOOD SARANDON ESPOUSES INNUMERABLE POLITICAL CAUSES THESE INCLUDE WOMEN HOMELESS WOMEN HOMELESS PEOPLE IN GENERAL VICTIMS OF CENTRAL AMERICAN POLITICAL REPRESSION AIDS VICTIMS NICARAGUAN MOTHERS THE POOR AND VARIOUS COMBINATIONS THEREOF ENVIRONMENTALLY SENSITIVE READERS OR MANATEE BUFFS IRED BY THE IMMENSE AMOUNT OF PRESS COVERAGE MORE COLORFUL AQUATIC SPECIES SEEM TO GET WILL BE HEARTENED TO KNOW THAT AT NO POINT DURING THE INTERVIEW DID SARANDON EXPRESS ANY CONCERN ABOUT THE WHALES IS TOM CRUISE GROWING AS THEY SAY AS AN ACTOR CRUISE STARTED OUT AS A GENERIC HEARTTHROB IN ALL THE RIGHT MOVES RISKY BUSINESS AND TOP GUN BUT HAS SINCE PROFITED FROM THE WIDELY HELD NOTION THAT APPEARING IN RAIN MAN AND BORN ON THE FOURTH OF JULY DEMONSTRATED A WILLINGNESS TO STRETCH IT IS A MEASURE OF HOW SPECTACULARLY INFANTILE THE MOVIE INDUSTRY HAS BECOME TO SUGGEST THAT MAKING A FILM WITH EITHER OLIVER STONE OR BARRY LEVINSON CONSTITUTES A STRETCH SINCE ALL WE ARE TALKING ABOUT IS OF MICE AND MEN GOES TO VEGAS AND A WHEELCHAIR PLATOON STILL IT'S A START FOR ONE OF YOUR ARTICLES YOU TRIED TO RECREATE FAMOUS SCENES FROM MOVIES INCLUDING THE JULIA ROBERTS CHARACTER IN PRETTY WOMAN GETTING PICKED UP BY RICHARD GERE AS A BUSINESS COMPANION WHAT HAPPENED NONE OF THE WOMEN I SAW ON EIGHTH AVENUE BORE EVEN A REMOTE PHYSICAL RESEMBLANCE TO JULIA ROBERTS OR FOR THAT MATTER TO ERIC ROBERTS IF ANYONE HAD MADE A MOVIE ABOUT ANY OF THESE TRAGIC INDIVIDUALS IT WOULD HAVE BEEN CALLED PRETTY UGLY WOMAN MOREOVER IT WASN'T ALWAYS EASY TO ESTABLISH WHETHER THE WOMAN I WAS TALKING TO WAS ACTUALLY A WOMAN OR A HUMAN IS THERE ANYTHING WE CAN LEARN FROM THE MOVIES MUSIC BOX IS A BRUTAL DISTURBING FILM ABOUT AN UNENDURABLE TRUTH THAT SOME OF US ARE THE PARENTS OF FIENDS THAT SOME OF US ARE THE CHILDREN OF MONSTERS MS HOELTERHOFF IS THE JOURNAL'S BOOKS EDITOR 9402180085 940218 LEISURE & ARTS ART CRIME UPDATE A MUNCH NABBED IN NORWAY BY CONSTANCE LOWENTHAL AS THE WORLD FOCUSED ON NORWAY ON THE EVE OF THE WINTER OLYMPICS THIEVES IN OSLO STOLE THE MOST FAMOUS NORWEGIAN PAINTING EDVARD MUNCH'S THE SCREAM 1893 IT HAD BEEN MOVED FROM AN UPPERSTORY GALLERY IN THE NATIONAL MUSEUM OF ART TO A GROUNDFLOOR EXHIBITION SPACE SHOWCASING THE MUSEUM'S BEST WORKS ON THE OCCASION OF THE GAMES ADDING INSULT TO INJURY THE BURGLARS LEFT BEHIND A NOTE THANKING THE MUSEUM FOR THE POOR SECURITY HAD SOME FRUSTRATED MUNCH LOVER SEIZED THE DAY OR WAS THE TAUNTING MESSAGE A PRELUDE TO A DEMAND FOR RANSOM FOR MEDIA ATTENTION TO A CAUSE OR FOR A POLITICAL PAYOFF NO EXPLANATION HAS YET EMERGED AND THE THIEVES ARE STILL AT LARGE WITH THEIR BOOTY ALTHOUGH THEY AND THEIR MERCEDES STATION WAGON WERE CAPTURED ON A SURVEILLANCE VIDEO THE OSLO THEFT ECLIPSED WHAT APPEARS TO HAVE BEEN THE FIRST MAJOR ART THEFT OF 1994 A 1928 PICASSO PAINTING TETE IN OIL AND SAND ON CANVAS AND VALUED AT 500000 WAS STOLEN ON JAN 3 FROM THE RICHARD GRAY GALLERY IN CHICAGO THE FLOORTOCEILING GLASS WALL OF THE SECONDFLOOR PREMISES WAS SMASHED AND WHILE THE SILENT ALARM RANG THE THIEF OR THIEVES ESCAPED ALSO TAKEN WAS AN ACRYLICONCANVAS LANDSCAPE BY HAROLD GREGOR A CONTEMPORARY AMERICAN ARTIST WHOSE INDIANA SCENE IS LONG AND NARROW AT 9 INCHES BY 28 INCHES A REWARD OF 50000 IS BEING OFFERED BY THE INSURERS FOR INFORMATION LEADING TO THE RECOVERY OF THE TWO PAINTINGS IF YOU ARE OFFERED A ROMAN STUCCO RELIEF OF A DANCING GIRL WEARING FLOATING LEGREVEALING GARMENTS BUT MISSING HER HEAD BEWARE SUCH A FIGURE WAS STOLEN FROM THE TOMBS OF THE CLAUDII IN THE OSTIA NECROPOLIS NEAR ROME IN JULY INTERPOL REPORTS SHE IS LOVELY MUCHPHOTOGRAPHED AND WELLPUBLISHED AS SUCH SHE IS DISTINGUISHED FROM MANY ANTIQUITIES ON THE MARKET WHOSE PREVIOUS OWNERSHIP IS A MYSTERY THE REPUBLIC OF GREECE SUED THE MICHAEL WARD GALLERY IN NEW YORK IN MAY 1993 DEMANDING THE RETURN OF AN ENTIRE EXHIBITION OF ANCIENT GOLD FROM MYCENAE THAT MICHAEL WARD WAS OFFERING FOR 15 MILLION THE GALLERY CLAIMED THAT SINCE IT HAD CONTACTED GREECE'S CULTURE MINISTRY AND BEEN TOLD THAT THERE WAS NO EVIDENCE THE GOLD ITEMS CAME FROM GREECE THE SUIT SHOULD BE DISMISSED NEAL JOHNSTON GREECE'S ATTORNEY ARGUED THAT ALL KNOWN MYCENAEAN ARTIFACTS COME UNDER ITS CULTURAL PATRIMONY LAWS BECAUSE THE CITY WAS ONLY DISCOVERED IN THE 1870S AND ANCIENT TRADE IN MYCENAEAN OBJECTS IS UNKNOWN HE ADDED THAT GREECE HAD REASON TO BELIEVE THE OBJECTS WERE LOOTED FROM A PREVIOUSLY UNDISCOVERED TOMB IN GREECE THE OBJECTS DATE TO THE MIDDLE OF THE SECOND MILLENNIUM BC IN LATE DECEMBER THE PARTIES SETTLED CUTTING SHORT WHAT WOULD HAVE BEEN LONG AND COSTLY LITIGATION THE GALLERY DONATED THE GOLD TO THE WASHINGTONBASED NOTFORPROFIT SOCIETY FOR THE PRESERVATION OF GREEK HERITAGE WHICH PLANS TO EXHIBIT IT A HEADLESS KHMER FEMALE DEITY FROM THE LATE 12TH OR EARLY 13TH CENTURY WILL TRAVEL FROM PARIS BACK TO ANGKOR WAT IN CAMBODIA STOLEN LAST YEAR AND PUBLISHED LAST FALL IN LOOTING IN ANGKOR ONE HUNDRED MISSING OBJECTS BY THE INTERNATIONAL COUNCIL ON MUSEUMS ICOM THE FIGURE WAS RETURNED BY JM BEURDELEY A PARISIAN DEALER IN ORIENTAL ANTIQUITIES IN A CEREMONY IN PARIS LATE LAST YEAR THE COLOR BOOKLET WITH EXCELLENT ILLUSTRATIONS AND DESCRIPTIONS IN FRENCH AND ENGLISH OF THE 100 OBJECTS DECLARED MISSING AFTER THEFTS ON FEB 9 AND APRIL 7 1993 APPEARED IN THE FALL IT WAS PREPARED IN COLLABORATION WITH THE ECOLE FRANCAISE D'EXTREMEORIENT ICOM SEES THIS FIRST RETURN AS EVIDENCE OF THE EFFECTIVENESS OF ITS PUBLICATION THE COUNCIL IS PLANNING TO ISSUE COMPARABLE BOOKLETS ABOUT LOOTING OF CULTURAL HERITAGE IN LATIN AMERICA AFRICA AND EASTERN EUROPE ON THE SECOND DAY OF TRIAL AFTER EIGHT YEARS OF WRANGLING A DISPUTE ABOUT THE OWNERSHIP OF A SMALL EARLY GOUACHE BY MARC CHAGALL HAS BEEN SETTLED OUT OF COURT MENAGERIES OR THE CATTLE DEALER NOW BELONGS TO RACHEL LUBELL WHO PURCHASED IT AT A MADISON AVENUE GALLERY IN THE LATE '60S AROUND THE TIME THE GUGGENHEIM MUSEUM NOTICED THAT THE CHAGALL WAS MISSING FROM ITS INVENTORY WHEN THE MUSEUM DISCOVERED THAT MRS LUBELL HAD THE PICTURE AND SHE REFUSED TO GIVE IT BACK OR BEQUEATH IT TO THE GUGGENHEIM THE MUSEUM SUED MRS LUBELL IN TURN SUED HER VENDOR'S ESTATE WHICH THEN SUED THE GALLERY'S SOURCE ANOTHER DEALER WHO DENIED HAVING ACQUIRED IT FROM A FORMER MAILROOM EMPLOYEE OF THE MUSEUM ALL THE PARTIES HAVE AGREED THAT MRS LUBELL IS NOW THE OWNER OF THE GOUACHE AND THAT THE MUSEUM WILL RECEIVE A TOTAL PAYMENT IN THE NEIGHBORHOOD OF 200000 WITH EACH DEFENDANT CONTRIBUTING AN UNDISCLOSED AMOUNT HAD THE COURT DECIDED IN FAVOR OF THE MUSEUM MRS LUBELL AND THE OTHER DEFENDANTS FACED HUGE EXPENSES PAYMENT OF CURRENT VALUE PLUS THE LEGAL COSTS OF THE TRIAL FOR THE GUGGENHEIM'S PART ITS CLAIM TO HAVE BEEN THE TRUE OWNER IS LEFT INTACT BY THE SETTLEMENT AND IT WILL LIVE WITHOUT THIS CHAGALL INDEED NOT LONG AGO THE TRUSTEES DEACCESSIONED SEVERAL OTHER MORE IMPRESSIVE WORKS BY THE ARTIST MS LOWENTHAL IS EXECUTIVE DIRECTOR OF THE INTERNATIONAL FOUNDATION FOR ART RESEARCH IFAR 9402180084 940218 DE BEERS UNIT GE ARE INDICTED IN PRICEFIXING GRAND JURY SAYS COMPANIES EXCHANGED INFORMATION ON INDUSTRIAL DIAMONDS BY WILLIAM M CARLEY AND AMAL KUMAR NAJ STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO AND A UNIT OF THE DE BEERS GROUP WERE INDICTED BY A FEDERAL GRAND JURY ON CHARGES THEY CONSPIRED TO FIX PRICES OF INDUSTRIAL DIAMONDS IN WORLD MARKETS THE CRIMINAL INDICTMENT WHICH CAPPED A 2 1/2YEAR JUSTICE DEPARTMENT INVESTIGATION CHARGES THAT MIDLEVEL OFFICIALS OF GE AND DE BEERS EXCHANGED PROPOSED PRICE LISTS FOR INDUSTRIAL DIAMONDS IN EUROPE IN 1991 AND 1992 ALSO INDICTED BY THE GRAND JURY WERE PETER FRENZ HEAD OF GENERAL ELECTRIC'S INDUSTRIAL DIAMOND BUSINESS IN EUROPE AND PHILIPPE LIOTIER A MIDLEVEL EXECUTIVE IN THE DE BEERS GROUP NO TOPLEVEL OFFICIALS AT EITHER GE OR DE BEERS WERE NAMED THE INDICTMENT FILED IN FEDERAL DISTRICT COURT IN COLUMBUS OHIO REPRESENTED A STUNNING REVERSAL FOR GE JUST TWO DAYS AGO THE FORMER GE EXECUTIVE EDWARD RUSSELL WHO HAD TOUCHED OFF THE WHOLE JUSTICE DEPARTMENT INVESTIGATION WITH HIS ALLEGATIONS OF PRICEFIXING HAD RETRACTED ALL HIS CHARGES HE ALSO DROPPED HIS OWN WHISTLEBLOWER LAWSUIT AGAINST GE IN FEDERAL COURT IN CINCINNATI GE BASED IN FAIRFIELD CONN HAS A SUPERABRASIVES DIVISION IN WORTHINGTON OHIO WHICH MAKES SYNTHETIC DIAMONDS USED IN INDUSTRIAL CUTTING TOOLS DE BEERS MINES DIAMONDS IN AFRICA AND MAKES SYNTHETIC DIAMONDS IN EUROPE BOTH ARE USED IN INDUSTRIAL TOOLS DE BEERS IS ALSO FAMED FOR RUNNING THE INTERNATIONAL CARTEL THAT FIXES THE PRICES OF DIAMOND GEMS CONTROLLING THE VAST MAJORITY OF DIAMOND SALES IN THE WORLD GE IN A STATEMENT ISSUED FOLLOWING THE INDICTMENT SAID THAT THERE HAS BEEN NO ANTITRUST VIOLATION BY GE OR BY GE EMPLOYEES GE WILL LITIGATE THIS CASE AND IS CONFIDENT IT WILL PREVAIL AT TRIAL DE BEERS COULDN'T BE REACHED FOR COMMENT AFTER THE INDICTMENT BUT EARLIER IN THE DAY A COMPANY SPOKESMAN IN JOHANNESBURG SOUTH AFRICA REITERATED THE COMPANY'S EARLIER DENIALS OF ANY COLLUSION WITH GE WE ARE VERY COMPETITIVE WITH GE HE SAID MESSRS FRENZ AND LIOTIER COULDN'T BE REACHED FOR COMMENT DE BEERS DOES BUSINESS JUST ABOUT EVERYWHERE IN THE WORLD EXCEPT IN THE US DE BEERS HAS REFUSED TO COOPERATE WITH THE JUSTICE DEPARTMENT INVESTIGATION JUSTICE DEPARTMENT OFFICIALS SAY THE ACCUSATIONS BY MR RUSSELL THE FIRED GE VICE PRESIDENT HAD FOCUSED ON A TOP GE OFFICIAL FLYING TO LONDON IN 1991 ALLEGEDLY TO ARRANGE A PRICEFIXING SCHEME BUT THE JUSTICE DEPARTMENT INVESTIGATION SOON TURNED IN A DIFFERENT DIRECTION THE JUSTICE DEPARTMENT INVESTIGATION CONCENTRATED ON MIDLEVEL EXECUTIVES OF THE TWO COMPANIES ACCORDING TO THE INDICTMENT GE'S MR FRENZ BASED IN GERMANY PROVIDED MR LIOTIER AN OFFICIAL OF A DE BEERS UNIT CALLED DIAMANT BOART IN BELGIUM WITH ADVANCE INFORMATION ON GE'S FUTURE PRICE LISTS THE INDICTMENT STATES THAT DE BEERS CONSOLIDATED MINES LTD OF SOUTH AFRICA AND DE BEERS CENTENARY AG OF SWITZERLAND WITH LINKED CORPORATE OWNERSHIP CONTROL COMPANIES THAT BOTH PRODUCE INDUSTRIAL DIAMONDS AND PURCHASE INDUSTRIAL DIAMONDS TO MAKE INDUSTRIAL TOOLS THE DE BEERS UNIT INDICTED WAS DE BEERS CENTENARY OF SWITZERLAND THE DE BEERS UNIT PURCHASING DIAMONDS IN ORDER TO MAKE TOOLS IS DIAMANT BOART THE INDICTMENT SAYS INDUSTRY EXECUTIVES SAY DIAMANT BOART IS GE'S BIGGEST CUSTOMER FOR SYNTHETIC DIAMONDS IN EUROPE FRENZ OF GE PROVIDED THE GE FUTURE PRICING INFORMATION TO LIOTIER OF DIAMANT BOART UNDER THE PRETEXT AND COVER THAT LIOTIER WAS RECEIVING THE INFORMATION FOR THE SOLE BENEFIT OF DIAMANT BOART AN INDUSTRIAL DIAMOND CUSTOMER RATHER THAN FOR THE BENEFIT OF THE INDUSTRIAL DIAMOND MANUFACTURING INTERESTS OF DE BEERS A COMPETITOR THE INDICTMENT SAYS MR LIOTIER RECIPROCATED PROVIDING GE THROUGH MR FRENZ ADVANCE INFORMATION ON DE BEERS INDUSTRIAL DIAMOND PRICES THE INDICTMENT ADDS THE INDICTMENT SPECIFIES THAT IN NOVEMBER 1991 MR FRENZ FAXED TO MR LIOTIER GE'S PLANS FOR CERTAIN PRICE INCREASES THE INDICTMENT SAYS THE PLANS HADN'T BEEN CIRCULATED AMONG GE MANAGEMENT AND HADN'T BEEN FINALIZED AND GE HAD DIRECTED THAT THE PRICING PLANS NOT BE DISCLOSED TO CUSTOMERS EVEN WHEN FINALIZED A MONTH LATER THE INDICTMENT CONTINUES MR LIOTIER PROVIDED MR FRENZ DATA ON DE BEERS' FUTURE PRICES AND MR FRENZ THEN FAXED THIS DATA TO GE SUPERABRASIVES' INTERNATIONAL SALES MANAGER IN OHIO MR FRENZ'S COVER MEMO ON THE FAX SENT TO OHIO ACCORDING TO THE INDICTMENT STATED LIOTIER OF DIAMANT BOART INFORMED ME ABOUT PLANNED PRICE INCREASES OF DE BEERS EFFECTIVE EARLY 1992 THE ATTACHED INFORMATION WAS GIVEN TO HIM CONFIDENTIALLY PLEASE TREAT THE INFORMATION CAREFULLY LIOTIER IS SUPPORTING A PRICE INCREASE AND WOULD LIKE TO KNOW BY DEC 18 1991 AT 1800 HOURS EUROPEAN TIME WHETHER GES GE SUPERABRASIVES IS GOING TO FOLLOW IN JANUARY 1992 GE DID ANNOUNCE PRICE INCREASES THE INDICTMENT STATES AND IN JANUARY AND FEBRUARY 1992 DE BEERS DISTRIBUTORS ALSO ANNOUNCED PRICE INCREASES ON FEB 18 1992 THE INDICTMENT ADDS MR FRENZ FAXED TO MR LIOTIER A CONFIDENTIAL INTERNAL GE MEMO TO REASSURE DE BEERS THAT GE HAD INCREASED CERTAIN LIST PRICES IN ACCORD WITH THE LIST MR FRENZ HAD PREVIOUSLY SENT TO MR LIOTIER YESTERDAY GE CITED THE FACT THAT MR RUSSELL WHO TRIGGERED THE JUSTICE DEPARTMENT INVESTIGATION HAD NOW WITHDRAWN HIS CHARGES GE ADDED THAT THE GOVERNMENT IS NOW TRYING TO SALVAGE ITS EFFORT BY BRINGING A WHOLLY CIRCUMSTANTIAL CASE OF INDIRECT PRICEFIXING THAT'S WITHOUT MERIT IT SAID MR FRENZ THE EUROPEAN GE EMPLOYEE INDICTED ALONG WITH GE ACTED PROPERLY UNDER ANTITRUST COMPLIANCE PRACTICES IN RECEIVING COMPETITIVE INFORMATION FROM A CUSTOMER AND FORWARDING IT TO THE PRICING DECISION MAKERS MR FRENZ GE ADDED HAD NO PRICING AUTHORITY IT SAID THAT GE SUPERABRASIVES EMPLOYEES IN WORTHINGTON OHIO WHO HAD PRICING AUTHORITY AT ALL TIMES ACTED UNILATERALLY IN PRICING DECISIONS GE SAID THAT LISTPRICE DIFFERENCES BETWEEN GE AND DE BEERS INDUSTRIAL DIAMONDS WERE IN FACT GREATER AFTER THE PRICING ACTION CITED IN THE INDICTMENT IN COMPARABLE SAW DIAMOND PRODUCTS FOR INSTANCE AVERAGE DIFFERENCES IN LIST PRICES TRIPLED GE SAID INDUSTRIAL DIAMONDS ARE A 600 MILLION A YEAR INDUSTRY DOMINATED BY GE AND DE BEERS THESE SYNTHETIC DIAMONDS ARE USED IN CUTTING SAWING AND OTHER MACHINING TOOLS FOR ROAD CONSTRUCTION AUTO MANUFACTURING MINING AND OIL DRILLING FOR GE INDUSTRIAL DIAMOND PRODUCTS ACCOUNTED FOR 05 OF LAST YEAR'S REVENUE OF 60 BILLION UNDER THE ONECOUNT INDICTMENT BROUGHT UNDER THE SHERMAN ANTITRUST ACT THE MAXIMUM PENALTY FOR A CORPORATION WOULD BE A FINE OF 10 MILLION OR TWICE THE FINANCIAL GAIN FROM THE CRIME OR TWICE THE LOSS TO VICTIMS WHICHEVER WAS GREATER FOR AN INDIVIDUAL THE MAXIMUM WOULD BE THREE YEARS IN JAIL AND A FINE OF 350000 OR TWICE THE PERPETRATOR'S GAIN OR VICTIM'S LOSS WHICHEVER WAS GREATER 9402180083 940218 WORLD MARKETS EUROPEAN BOURSES STAGE LATE RALLIES SPURRED BY CUTS IN INTEREST RATES TOKYO STOCKS DROP A WALL STREET JOURNAL NEWS ROUNDUP INTERESTRATE CUTS BY THE GERMAN BUNDESBANK AND OTHER EUROPEAN CENTRAL BANKS YESTERDAY IGNITED LATE RALLIES ON MANY OF THE CONTINENT'S BOURSES LONDON STOCKS ROSE MARGINALLY AFTER WORRIES ABOUT BRITISH CORPORATE EARNINGS ERODED GAINS PROMPTED BY THE UNEXPECTED RATE CUTS THE GERMAN MOVE WAS UNVEILED AFTER THE EXCHANGE CLOSED IN FRANKFURT WHERE PRICES FELL IN THE REGULAR SESSION BUT JUMPED IN AFTERMARKET TRADING IN TOKYO STOCKS DROPPED IN THIN TURNOVER THURSDAY AS INVESTORS REMAINED WARY ABOUT THE JAPANESE YEN'S CONTINUED STRENGTH IN THE STANDOFF IN USJAPANESE TRADE RELATIONS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11616 DOWN 023 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS WATER UTILITIES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12577 UP 162 OR 13 WITH LYONNAISE DES EAUX DUMEZ OF FRANCE POSTING A 24 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 7022 DOWN 193 OR 27 WITH ACUSON OF THE US SLIDING 51 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 76 POINTS TO 34253 OFF FROM ITS INTRADAY HIGH OF 34376 THE FT 30STOCK INDEX EDGED UP 10 POINT TO 26340 VOLUME WAS 701 MILLION SHARES COMPARED WITH 8175 MILLION SHARES A DAY EARLIER IN ITS FIRST EASING OF KEY RATES SINCE LAST OCTOBER THE GERMAN CENTRAL BANK LOWERED TO 525 FROM 575 ITS DISCOUNT RATE WHICH IT CHARGES COMMERCIAL BANKS FOR SHORTTERM LOANS CENTRAL BANKS IN BELGIUM THE NETHERLANDS AND AUSTRIA ALSO REDUCED RATES AND LATER YESTERDAY ITALY JOINED THE BANDWAGON THE AFTERNOON NEWS OF THE BUNDESBANK DECISION SPURRED LONDON'S FT 100 TO REVERSE A LOSS THE SESSION LOW WAS 34045 AND ROLL UP A 175POINT GAIN THE LONDON RALLY ALSO WAS AIDED BY A STRONG OPENING ON WALL STREET INVESTORS CONTINUED TO HOPE FOR A BRITISH LENDINGRATE CUT FOLLOWING THE PREVIOUS DAY'S REPORT OF SUBDUED INFLATIONARY PRESSURE DISAPPOINTING INDUSTRIAL OUTPUT AND A RISE IN UNEMPLOYMENT BUT IN THE LAST HOUR OF LONDON TRADING PRICES RETREATED ON CONCERNS ABOUT A GLUT OF CORPORATE RESULTS TO BE POSTED NEXT WEEK 10 OF THE COMPANIES IN THE 100STOCK INDEX ARE TO REPORT EARNINGS THE LOW VOLUME INDICATED THAT INVESTORS WERE AWAITING A BRITISH MONETARY EASING AND BULLISH CORPORATE RESULTS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 789 POINTS TO 212872 LESS THAN A POINT ABOVE THE SESSION'S LOW IN QUIET TRADING IN COMPUTERIZED AFTERMARKET DEALINGS STOCKS JUMPED 20 POINTS AS INVESTORS HAD EXPECTED THE BUNDESBANK TO LEAVE RATES STEADY UNTIL AT LEAST EARLY MARCH BASED ON MONEYSUPPLY GROWTH DATA THEN AND AN ANTICIPATED SETTLEMENT OF THE GIANT METALWORKERS UNION CONTRACT IN PARIS SHARE PRICES WERE LOWER IN MORNING DEALINGS BUT RALLIED IN THE AFTERNOON IN RESPONSE TO THE EUROPEAN INTERESTRATE CUTS FINISHING HIGHER TRADERS EXPECTED THE BANK OF FRANCE TO FOLLOW SUIT SOON PERHAPS TODAY THE CENTRAL BANK LEFT BENCHMARK RATES UNCHANGED DURING YESTERDAY'S SECURITIES REPURCHASE AGREEMENT IN AMSTERDAM EQUITIES HAD A MIXED TO WEAKER START BUT ALSO ENDED WITH GAINS FOLLOWING A RALLY DRIVEN BY THE MONETARY NEWS IN EUROPE IN MILAN STOCKS ADVANCED IN FRENZIED DEALINGS TOUCHED OFF BY INTERESTRATE FEVER FOLLOWING THE GERMAN ANNOUNCEMENT AND BY SPECULATION ITALY ALSO WOULD CUT RATES AS IT DID LATER IN MADRID PRICES ENDED HIGHER AFTER A WEAK OPENING AND FURTHER SAGGING BEFORE ROARING UP IN RESPONSE TO THE BUNDESBANK MOVE THEN SLIPPING TOWARD THE CLOSE IN STOCKHOLM SHARES JUMPED IN HEAVY TRADING SUPPORTED BY DECLINING SWEDISH BOND AND MONEYMARKET YIELDS AFTER THE GERMAN DISCOUNTRATE CUT IN ZURICH EQUITIES CLIMBED PROPELLED BY STRENGTH IN BANKING SHARES AND A LATE BURST OF BUYING IN RESPONSE TO THE GERMAN EASING WHICH ALSO PUSHED MANY SHARES UP IN BRUSSELS WHERE PRICES CLOSED MIXED TO HIGHER IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 7751 POINTS WEDNESDAY FELL 12072 TO 1893139 ON FRIDAY THE NIKKEI INDEX ROSE 8841 POINTS TO CLOSE THE MORNING SESSION AT 1901980 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3723 MILLION SHARES A DAY EARLIER LOSERS TROUNCED GAINERS 696293 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 376 POINTS WEDNESDAY FELL 555 TO 155355 ACTIVITY WAS SUBDUED AS INVESTORS CONTINUED TO WAIT FOR CLUES ABOUT THE DIRECTION OF THE JAPANESE CURRENCY THOUGH MORE ADVANCES SOON WEREN'T CONSIDERED LIKELY PARTICIPANTS WERE CHEERED WHEN THE YEN DIDN'T ADVANCE FURTHER WEDNESDAY AFTER PRESIDENT CLINTON SAID HIS TOP ADVISERS WILL MAKE RECOMMENDATIONS IN THE NEXT FEW DAYS REGARDING TRADE WITH JAPAN THE YEN HAD STRENGTHENED SHARPLY AGAINST THE DOLLAR FOLLOWING THE FAILURE LAST WEEKEND OF BILATERAL TRADE TALKS A STABILIZING YEN REDUCED PRESSURE TO SELL SHARES BUT MANY INVESTORS FEARED THAT THE YEN'S RISE COULD OFFSET JAPAN'S EFFORTS TO HASTEN AN ECONOMIC RECOVERY THE TRADE ISSUE CAUSED WEAKNESS IN TOKYO STOCKS IN MORNING ACTIVITY AND PRICES WERE HURT IN EARLYAFTERNOON DEALINGS BY ARBITRAGELINKED SELLING AS DECLINES IN NIKKEIINDEX FUTURES LED TO SELLING OF SHARES OVERSEAS INVESTORS WHO WERE MOSTLY ON THE SIDELINES IN THE MORNING BOUGHT LARGECAPITALIZATION SHARES IN THE AFTERNOON HELPING THE NIKKEI RECOUP SOME OF ITS LOSSES IN SYDNEY STOCKS CLOSED MAINLY LOWER DRIVEN LARGELY BY A SELLOFF IN THE FUTURES MARKET WHICH IS TYPICAL THERE AHEAD OF A US REPORT ON CONSUMER PRICES GOLD STOCKS ROSE ALONG WITH THE METAL'S PRICE IN HONG KONG SHARES CLIMBED 14 REGAINING SOME OF LOSSES THAT TOOK THE MARKET DOWN 76 IN THE PREVIOUS THREE SESSIONS OVERSEAS INSTITUTIONAL INVESTORS WERE THE MAJOR PLAYERS TRADING WAS QUIET AS NEWS TO INFLUENCE THE MARKET REMAINED SCARCE AHEAD OF FRIDAY'S MEETING OF THE LOCAL BANKING CARTEL WHICH WILL DECIDE AFTER THE MARKET CLOSES WHETHER TO LIFT HONG KONG INTEREST RATES IN TAIPEI PRICES ROSE 07 AFTER LOSING 2 WEDNESDAY AND MORE THAN 6 IN THIS WEEK'S FIRST THREE DAYS LATE IN THE SESSION FINANCIAL SHARES SAVED THE MARKET FROM ITS FOURTH DROP IN A ROW BRINGING THE MAIN INDEX INTO THE POSITIVE TERRITORY WHERE IT HAD BEGUN IN SEOUL EQUITIES EASED AFTER A STORM OF LASTMINUTE SELLING WIPED OUT EARLY GAINS AS INVESTORS TURNED CAUTIOUS FOLLOWING TWO STRONG SESSIONS ON POSITIVE NEWS INCLUDING SETTLEMENT OF NORTH KOREA'S NUCLEAR ISSUE A STRONG JAPANESE YEN AND THE SOUTH KOREAN GOVERNMENT'S RENEWED COMMITMENT TO TECHNOLOGY DEVELOPMENT IN BANGKOK STOCKS SURVIVED SEVERAL BOUTS OF PROFITTAKING IN BLUE CHIPS TO RISE 11 AMONG CORPORATE DEVELOPMENTS IN TOKYO PIONEER ELECTRONIC LOST 60 YEN OR 21 TO 2800 YEN 2697 THE CONSUMER ELECTRONICS MAKER'S CONSOLIDATED PRETAX PROFIT FOR ITS THIRD QUARTER ENDED DEC 31 PLUNGED 74 TO 3 BILLION YEN 289 MILLION FROM A YEAR EARLIER HURT BY SLUGGISH GLOBAL SALES AND THE YEN'S APPRECIATION AGAINST OTHER MAJOR CURRENCIES 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 9402180082 940218 FOREIGN EXCHANGE DOLLAR'S DROP AGAINST MARK IS UNFAZED DESPITE A CUT IN GERMAN DISCOUNT RATE BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK A LONGAWAITED CUT IN THE BUNDESBANK'S DISCOUNT RATE YESTERDAY DID LITTLE TO STEM THE DOLLAR'S WEEKLONG SKID AGAINST THE MARK BAFFLING MANY TRADERS WHO EXPECTED THE DOLLAR TO REGAIN SOME LUSTER ON THE ANNOUNCEMENT BUT ANALYSTS NOTED THAT A SLEW OF ECONOMIC DATA RELEASED YESTERDAY APPEARED TO POINT TO A SLOWING US ECONOMIC RECOVERY HELPING TO FIRMLY CAP A POTENTIAL DOLLAR RISE LATE IN NEW YORK THE DOLLAR WAS TRADING MIXED FROM DAYEARLIER LEVELS IT WAS QUOTED AT 17233 MARKS UNCHANGED FROM LATE WEDNESDAY IN NEW YORK AND AT 10410 YEN UP FROM 10380 YEN STERLING WAS TRADING AT 14790 UP FROM 14765 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10375 YEN AND AT 17135 MARKS THE BUNDESBANK CUT ITS DISCOUNT RATE 050 PERCENTAGE POINT TO 525 BUT LEFT THE LOMBARD RATE UNCHANGED AT 675 ALMOST AS SIGNIFICANT ACCORDING TO ANALYSTS WAS THE FACT THAT THE GERMAN CENTRAL BANK KEPT UNCHANGED AT A FIXED 6 REPURCHASE AGREEMENTS OR REPOS ITS MAIN INSTRUMENT FOR INFLUENCING THE MONEY MARKET THE FACT THAT REPOS WERE LEFT UNCHANGED LEAVES THE DISCOUNT RATE CUT AS BEING MORE SYMBOLIC THAN ANYTHING ELSE SAID RANDOLPH DONNEY DIRECTOR OF RESEARCH AT PEGASUS ECONOMETRIC GROUP MR DONNEY ADDED THAT THE MARK MAY ALSO HAVE BENEFITED FROM THE PERCEPTION THAT LOWER GERMAN RATES WILL HELP PUSH THE ECONOMY OUT OF RECESSION OTHER EUROPEAN CENTRAL BANKS HAVE SEEN THEIR CURRENCIES RISE AFTER RATE CUTS IN RECENT MONTHS ON THOSE GROUNDS PLAYERS ALSO SAID THE MARK WAS PROTECTED BY THE TIMING OF THE RATE CUT NOTING IT OCCURRED AS THE MARKET WAS STILL FOCUSING HEAVILY ON THE DOLLARYEN EXCHANGE RATE THE DOLLAR HAS FALLEN SHARPLY SINCE THE FAILURE LAST FRIDAY OF USJAPAN TRADE TALKS AS WELL AS PLUNGING AGAINST THE YEN THE DOLLAR HAS DROPPED AGAINST OTHER MAJOR CURRENCIES SINKING STEADILY FROM 17545 MARKS LATE LAST FRIDAY IN NEW YORK INDEED THE MARKET WAS KEENLY AWAITING NEWS ON THE JAPANUS TRADE DISPUTE AND THE RELEASE OF KEY US ECONOMIC DATA INCLUDING THE LATEST READING ON JAPAN'S TRADE SURPLUS WITH THE US WHEN THE GERMAN CENTRAL BANK SURPRISED TRADERS WITH ITS ANNOUNCEMENT WHEN WE GOT NEWS ABOUT GERMANY THE MARKET WAS FOCUSED ON THE JAPANESE AND THE TRADESURPLUS NUMBERS SAID CORNELIUS LUCA ASSISTANT VICE PRESIDENT AT CREDIT ANSTALT BANKVEREIN IN NEW YORK THE MARKET THEN BEGAN ACTING IN THE EXACT OPPOSITE OF HOW FUNDAMENTALS AND TECHNICALS WOULD HAVE DICTATED MR LUCA ADDED THE DOLLAR MADE AN UNIMPRESSIVE RALLY TO INTRADAY HIGHS OF AROUND 17355 MARKS BEFORE MASSIVE SELLING PUSHED IT INTO LOWER RANGES THE UNEXPECTED REACTION TO THE RATE CUT WHICH WOULD NORMALLY REDUCE THE ATTRACTION OF MARKDENOMINATED ASSETS FUELED UNCONFIRMED RUMORS THAT THE BUNDESBANK HAD INTERVENED TO SUPPORT THE MARK THE DOLLAR ALSO FAILED TO GET MUCH SUPPORT FROM US DEPARTMENT OF COMMERCE DATA WHICH SHOWED THE US MERCHANDISE TRADE DEFICIT HAD NARROWED TO 741 BILLION IN DECEMBER FROM A REVISED 968 BILLION IN NOVEMBER ANY DOLLAR EUPHORIA WAS QUICKLY MUFFLED BY YEARLY DATA SHOWING THAT THE US TRADE GAP IN 1993 TOTALED 1158 BILLION THE HIGHEST SINCE 1988 AND THAT THE TRADE GAP WITH JAPAN REACHED A RECORD ALLTIME HIGH OF 593 BILLION 9402180081 940218 ADVERTISING A STABLE OF FEMALES HAS JOINED JOE CAMEL IN CONTROVERSIAL CIGARETTE AD CAMPAIGN BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE JOE CAMEL CIGARETTE CAMPAIGN IS GIVING ANTISMOKING ADVOCATES A NEW TARGET JOSEPHINE CAMELS FOR THE FIRST TIME SINCE THE CAMPAIGN FOR CAMEL CIGARETTES WAS INTRODUCED IN 1987 FEMALE CHARACTERS ARE BEING USED IN AN EFFORT THAT SOME CRITICS CALL A BLATANT ATTEMPT TO BROADEN THE TRADITIONALLY MALE BRAND'S APPEAL TO MORE WOMEN SMOKERS THE NEW CAMPAIGN IS AN AUDACIOUS MOVE BY RJR NABISCO HOLDINGS PARENT OF CAMEL'S MAKER RJ REYNOLDS IT COMES AS THE FEDERAL TRADE COMMISSION IS CONSIDERING A BAN ON THE JOE CAMEL CHARACTER THE FTC STAFF RECOMMENDED THE BAN IN AUGUST AFTER CRITICISM THAT THE CHARACTER ATTRACTED UNDERAGE SMOKERS THE FIVE COMMISSIONERS HAVEN'T MADE A RULING AND AN FTC SPOKESWOMAN YESTERDAY DECLINED TO COMMENT AND THE LIKELIHOOD OF ACTION DIMINISHES WITH EACH DAY THE NEW FOURPAGE FULLCOLOR FOLDOUT ADS FEATURE JOE'S PLACE A HAPPENING DUPLEX BAR CROWDED WITH MALE AND FEMALE CAMELS SHOOTING POOL PLAYING DARTS AND CARDS SCHMOOZING AND SMOKING OR HOLDING LIT CIGARETTES THE ADS STARTED APPEARING THIS WEEK IN MAGAZINES SUCH AS PEOPLE US GLAMOUR REDBOOK AND SPORTS ILLUSTRATED THE ADS ARE FRIGHTENING SAYS SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP IN WASHINGTON WHICH FIRST COMPLAINED ABOUT THE CAMPAIGN FIVE YEARS AGO NOW FEMALE CAMELS ARE BEING USED TO LURE MORE YOUNG WOMEN TO LIGHT UP THE NIGHT' CAMEL'S SLOGAN AND EVENTUALLY DIE JOE CAMEL IS EXPECTED TO BE DISCUSSED IN A REPORT ON SMOKING AND HEALTH THAT THE US SURGEON GENERAL'S OFFICE IS TO RELEASE NEXT THURSDAY ACCORDING TO THE SPOKESMAN SURGEON GENERAL JOYCELYN ELDERS IS EXPECTED TO CORROBORATE A 1991 AMERICAN MEDICAL ASSOCIATION FINDING THAT SOME CIGARETTE ADS APPEAL TO YOUNGSTERS THE SURGEON GENERAL EXPRESSES CONCERN ON FOCUSING TOBACCO ADVERTISING ON THE YOUTH AS A MEANS OF REPLACING ITS LOST CUSTOMERS SAYS THE SPOKESMAN THE JOE CAMEL CHARACTER WHICH WEARS SHADES A BLAZER AND A TSHIRT HAS BEEN VERY POPULAR WITH YOUNG MALES AN OFFICIAL SAYS THE SURGEON GENERAL'S STAFF IS CONSIDERING DRAFTING A LETTER TO THE FTC ASKING THE AGENCY TO TAKE ACTION ON JOE CAMEL YESTERDAY FORMER SURGEON GENERAL ANTONIA C NOVELLO SAID I WISH THE FTC HAD ACTED ON THE RECOMMENDATION THEN WE WOULDN'T BE SEEING FEMALE CAMELS AND OLD JOE CAMEL MIGHT HAVE BEEN GONE AS WELL WHO KNOWS IT IS MY HOPE THAT THE INTRODUCTION OF A FEMALE CAMEL WILL BE THE STRAW THAT BREAKS THE CAMEL'S BACK OF PUBLIC AND POLICY OPINION AN RJ REYNOLDS SPOKESWOMAN DISMISSES CRITICISM THAT THE CHARACTER ATTRACTS UNDERAGE SMOKERS WHILE THE NEW ADS REFER TO CAMEL CATALOG MERCHANDISE THEY NOTE PURCHASE IS RESTRICTED TO SMOKERS 21 AND OLDER SHE SAYS ALSO NO ONE HAS PUT FORTH CREDIBLE RESEARCH TO BACK UP ACCUSATIONS ABOUT OUR ADS ATTRACTING TEENAGE SMOKERS REYNOLDS HAS STUDIES SHE ADDS THAT SHOW THAT DESPITE A HIGH AWARENESS OF JOE CAMEL AMONG CHILDREN KIDS STILL DON'T LIKE SMOKING AND THAT SHOULD BE THEIR POSITION WE DON'T WANT THEM TO WANT TO SMOKE REYNOLDS SAYS ITS RESPONSIBILITY IS TO ITS SHAREHOLDERS AND IT WOULD BE WRONG TO INTERRUPT AN AD CAMPAIGN SOLELY BECAUSE OF CRITICISM FROM ANTISMOKERS WHILE CAMEL'S MARKET SHARE HAS FLUCTUATED THE JOE CAMEL CAMPAIGN HAS HELPED PREVENT A DRASTIC SLIP LAST YEAR LIKE MANY PREMIUMPRICED CIGARETTES CAMEL LOST SHARE DROPPING TO 39 FROM 41 IN 1992 ACCORDING TO WHEAT FIRST SECURITIES BUT IT STILL HOLDS ITS NO 8 RANKING IN SALES AMONG US BRANDS CAMEL'S ADVERTISING SPENDING SURGED 75 TO 375 MILLION FROM JANUARY TO NOVEMBER 1993 THE MOST RECENT FIGURES AVAILABLE FROM COMPETITIVE MEDIA REPORTING WHICH TRACKS AD SPENDING A YEAR EARLIER CAMEL SPENT 214 MILLION IN COMPARISON MARLBORO THE NO 1 BRAND CUT ITS AD SPENDING 16 TO 655 MILLION FROM 776 MILLION THE INTRODUCTION OF FEMALE CAMELS INTO THE AD CAMPAIGN SEEMS NATURAL SAYS JOHN MEZZINA CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR OF MEZZINA/BROWN THE NEW YORK AD AGENCY THAT CREATED THE CONTROVERSIAL ICON THEY MIGHT TAKE SOME PEOPLE BY SURPRISE HE SAYS BUT SOME COULD THINK JOE IS LIKE MICHAEL JORDAN IN THAT HE IS TOO COOL AND UNAPPROACHABLE THIS AD IS ABOUT INCLUSION THE CAMPAIGN IS IN CONJUNCTION WITH A CAMEL CASH PROGRAM IT ENCOURAGES SMOKERS TO COLLECT CAMEL PACKS AND REDEEM THEM FOR MERCHANDISE WITH THE CAMEL OR JOE'S PLACE LOGO INCLUDING BASEBALL CAPS CIGARETTE CASES AND LIGHTERS ANOTHER MAJOR MERCHANDISING EFFORT BY MARLBORO EXPIRES AT THE END OF THE MONTH A SPOKESWOMAN FOR PHILIP MORRIS WHICH MAKES MARLBORO SAYS THE BRAND WILL GEAR UP ANOTHER CAMPAIGN SHORTLY MEANWHILE THERE ARE NO PLANS FOR JOE CAMEL TO SLOW DOWN REYNOLDS RECENTLY PUBLISHED ITS FIFTH CAMEL CATALOG THE REYNOLDS SPOKESWOMAN SAYS THE CAMEL CASH PROGRAM IS VERY SUCCESSFUL AT ATTRACTING ADULT SMOKERS OF COMPETITIVE BRANDS AND SWITCHING THEM TO CAMEL AND EVERYONE AT JOE'S PLACE SEEMS TO BE HAVING A GOOD TIME INCLUDING A HUNKY MALE CAMEL WITH HIS LEG IN A CAST WHO IS GETTING HIS BACK RUBBED BY A FEMALE CAMEL IN A TSHIRT AND MINISKIRT THERE IS A CROWD DANCING TO THE BLUES QUARTET THE HARD PACK WHICH HAS APPEARED IN PREVIOUS CAMEL ADS THERE IS ONE ODD ELEMENT AT LEAST AT FIRST GLANCE ANYONE WHO IS DRINKING IS IMBIBING A CLEAR LIQUID AND H20 LABELS ARE ON THE TAPS BEHIND THE BAR INSTEAD OF BEER LOGOS IS THE MESSAGE THAT SMOKING CIGARETTES AT JOE'S PLACE IS ACCEPTABLE BUT DRINKING ALCOHOL ISN'T MR MEZZINA PAUSES NO HE SAYS AFTER A MOMENT THEY'RE CAMELS WHAT ELSE WOULD THEY BE DRINKING SEAGRAM CO ASSIGNED AN ESTIMATED 10 MILLION IN ADVERTISING TO OMNICOM GROUP'S TBWA ADVERTISING EXPANDING THE ROLE OF THE ABSOLUTVODKA AGENCY LESS THAN A MONTH AFTER IT LANDED ON SEAGRAM'S ROSTER TBWA WILL CREATE ADS FOR GODIVA LIQUEUR AND NEW PRODUCTS INCLUDING COYOTE TEQUILA GODIVA AND COYOTE PREVIOUSLY WERE HANDLED BY WELLS RICH GREENE BDDP TBWA SAID COMBINED BILLINGS WERE 10 MILLION THE NEW WORK COMES LESS THAN A MONTH AFTER TBWA JOINED SEAGRAM'S STABLE OF AGENCIES WHEN SEAGRAM ACQUIRED DISTRIBUTION RIGHTS TO ABSOLUT VODKA FROM GRAND METROPOLITAN'S CARILLON IMPORTERS SEAGRAM'S OTHER AGENCIES INCLUDE OMNICOM GROUP'S DDB NEEDHAM AND WPP GROUP'S OGILVY & MATHER SEAGRAM IS REVIEWING THE GLENLIVET SCOTCH WHISKY ACCOUNT CURRENTLY AT WPP GROUP'S OGILVY & MATHER OGILVY DDB NEEDHAM AND TBWA ARE PITCHING FOR IT INDUSTRY EXECUTIVES SAID GLENLIVET BILLED ABOUT 35 MILLION IN 1993 ACCORDING TO COMPETITIVE MEDIA REPORTING SEAGRAM HAS BEEN SHUFFLING OTHER ASSIGNMENTS TOO LATE LAST YEAR IT MOVED THE 35 MILLION MARTELL COGNAC ACCOUNT TO OGILVY FROM DDB NEEDHAM GAP INC'S BANANA REPUBLIC TAPPED ARNELL GROUP TO HANDLE ITS ACCOUNT THE AGENCY SAID ESTIMATED 1993 BILLINGS ARE 5 MILLION THE ACCOUNT WAS PREVIOUSLY HANDLED IN HOUSE PETER ARNELL SAID TWO ARNELL GROUP EMPLOYEES WOULD WORK FROM BANANA REPUBLIC'S SAN FRANCISCO PREMISES TO ESTABLISH A RELATIONSHIP THAT IS CLOSER TO THAT OF A PARTNERSHIP THAN A TRADITIONAL CLIENTAGENCY RELATIONSHIP GAP OFFICIALS DIDN'T RETURN PHONE CALLS KERRIGAN SPOT OLYMPIC FIGURE SKATER NANCY KERRIGAN STARTS APPEARING TOMORROW IN INSPIRATIONAL COMMERCIALS FROM REEBOK INTERNATIONAL AND AGENCY LEO BURNETT REEBOK HAS HAD BAD LUCK AIRING ADS STARRING OLYMPIC ATHLETES BEFORE TWO YEARS AGO IT STARTED HYPING A PAIR OF TRACK STARS MONTHS BEFORE THE GAMES ONE FAILED TO MAKE THE TEAM THE OTHER WON A BRONZE MEDAL A COMPANY SPOKESMAN SAID MS KERRIGAN DIDN'T BALK AT APPEARING IN THE SPOT BEFORE THE WOMEN'S COMPETITION NEXT WEEK WHO'S NEWS PAULA FORMAN EXECUTIVE VICE PRESIDENT AND HEAD OF THE PROCTER & GAMBLE BUSINESS AT SAATCHI & SAATCHI ADVERTISING WAS WOOED AWAY TO ANOTHER PROCTER SHOP WELLS RICH GREENE BDDP MS FORMAN AGE 45 WAS NAMED EXECUTIVE VICE PRESIDENT OVERSEEING WELLS RICH'S CONSUMER PRODUCTS ACCOUNTS INCLUDING PROCTER RECKITT & COLEMAN AND SEAGRAM CO SONY CORP'S SONY ELECTRONICS UNIT NAMED MARINA HAHN VICE PRESIDENT OF ADVERTISING SHE SUCCEEDS JEFFREY BROOKS WHO RESIGNED AS SENIOR VICE PRESIDENT OF ADVERTISING ON MONDAY SONY SAID MS HAHN WHO DIDN'T WANT TO DISCLOSE HER AGE WAS UNTIL RECENTLY DIRECTOR OF ADVERTISING FOR PEPSICO'S PEPSICOLA CO BURNETT LEO BURNETT CHICAGO SAID IT HAS FORMED A NONEQUITY AFFILIATION WITH VIETNAM ADVERTISING CO A PRIVATELY HELD AGENCY BASED IN HO CHI MINH CITY BURNETT SAID VIETNAM ADVERTISING WILL HANDLE MARKETING AND MEDIA IN VIETNAM FOR BURNETT'S MULTINATIONAL CLIENTS 9402180080 940218 FINANCING BUSINESS TELEGLOBE INC TELEGLOBE INC MONTREAL SAID IT WILL ISSUE C125 MILLION US925 MILLION OF SEVENYEAR 54 CUMULATIVE REDEEMABLE PREFERRED SHARES THE PUBLIC OFFERING CONSISTS OF FIVE MILLION SHARES PRICED AT C25 EACH RBC DOMINION SECURITIES INC AND GORDON CAPITAL CORP ARE LEAD UNDERWRITERS TELEGLOBE A MONTREALBASED TELECOMMUNICATIONS COMPANY SAID IT WILL USE NET PROCEEDS FOR CAPITAL EXPENDITURES AND GENERAL CORPORATE PURPOSES PENDING SUCH USE THE PROCEEDS MAY BE USED TO REDUCE OUTSTANDING BORROWINGS IT SAID 9402180079 940218 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE AND TIMOTHY K SMITH TV COVERAGE OF MOGUL SKIING THAT ROCK'NROLL BLASTING TESTOSTERONELADEN SPORT IS PROVIDING OF ALL THINGS WOMEN HEROES YOUNG AMERICAN FEMALES WHO WOULD LIKE A SPORTING ROLE MODEL WHO ISN'T REQUIRED TO DRESS LOLITASEXY AND SMILE CONSTANTLY NOW HAVE THE GRACEFUL BUT RUGGED LIZ MCINTYRE STINE LISE HATTESTAD AND DONNA WEINBRECHT VIEWERS LEARNED THAT MS HATTESTAD WHO WON THE GOLD TESTS HERSELF BY SKY DIVING MS MCINTYRE THE SILVER MEDALIST SEEMS SMART AND LEVELHEADED AS WELL AS ATHLETICALLY GIFTED ASKED WHAT SHE WOULD DO AFTER LILLEHAMMER SHE REPLIED I'M GOING TO GO SOMEPLACE WARM I'M GOING TO GET A DOG AND I'M GOING TO THINK FOR A WHILE SPONSORS BUY TIME ON CBS'S MORNING SHOW AT 15800 PER MINUTE IN NORMAL TIMES A GOOD DEAL MORE THIS WEEK BECAUSE OF THE OLYMPICS YOU HAVE TO WONDER HOW THEY FELT YESTERDAY MORNING WHEN MARK MCEWEN SPENT BROADCAST MINUTE AFTER MINUTE AFTER MINUTE INSIDE LILLEHAMMER'S MCDONALD'S TASTING THE FOOD INTERVIEWING CUSTOMERS AND GENERALLY PLUGGING THE FAMOUS FASTFOOD RESTAURANT CHAIN WE HOPE AT LEAST MCDONALD'S GAVE HIM ALL HE COULD EAT CBS HAS USED A LOT OF PROMOTIONAL TIME DURING THE GAMES TO SHOW ITS NEWS ANCHORS DAN RATHER AND CONNIE CHUNG LOOKING KNOWLEDGEABLE AND TALKING SERIOUSLY ABOUT WORLD EVENTS BOSNIA THE GNP YOU NAME IT NOW CBS HAS ASSIGNED MS CHUNG TO FLY TO LILLEHAMMER WITH TONYA HARDING AND STAKE OUT THE CONTROVERSIAL SKATER IN THE NAME OF SERIOUS JOURNALISM SHOULDN'T MR RATHER BE DOGGING NANCY KERRIGAN'S HEELS THE BIG EVENT ON YESTERDAY'S CBS MORNING SHOW WAS THE KERRIGANHARDING PRACTICE TIME SCOTT HAMILTON NOTED THE ABSURDITY OF IT ALL REMARKING THAT THE MEDIA HAD SO MOBBED THE SKATING HALL THAT IT LOOKS LIKE A GRATEFUL DEAD CONCERT GUESS HE NOTICED HOW MEDIA TYPES DRESS MR HAMILTON ALSO HAD A PHRASE FOR HOW MEDIA PACKS BEHAVE THEY'D MADE THE HALL A WELLBEHAVED ZOO HE SAID MICHAEL BARKANN CONTINUED HIS LAVISH DISPLAY OF SHAMELESSNESS THAT BEGAN WITH HIS REPORTING OF DAN JANSEN'S FAILURE TO WIN THE 500METER SPEEDSKATING RACE JOHANN OLAV KOSS THE GREAT NORWEGIAN SPEED SKATER SUPPORTS SPORTS EVENTS FOR HANDICAPPED CHILDREN MR KOSS HAS DEVELOPED A SPECIAL RELATIONSHIP WITH A BLIND 8YEAROLD BOY WHO WAS IN THE ARENA FOR MR KOSS'S SECOND GOLDMEDAL RACE MR BARKANN GOT CBS COVERAGE OF THE RACE OFF TO A BATHETIC START BY STICKING HIS MICROPHONE IN THE BOY'S FACE AND RATTLING OFF A LOUD INANE SET OF QUESTIONS CBS'S PRIMETIME COVERAGE WEDNESDAY NIGHT AGAIN FAR OUTPACED OTHER NETWORKS DRAWING 228 OF THE NATION'S 942 MILLION TV HOMES ACCORDING TO AC NIELSEN CO ABC DREW 122 FOX DREW 111 FROM 810 PM ONLY AND NBC DREW 92 9402180077 940218 INTERNATIONAL BMW'S CHAIRMAN PLANS VISIT TO HONDA TO DISCUSS FUTURE OF JOINTLY HELD ROVER BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH GERMANY WHEN BERND PISCHETSRIEDER CHAIRMAN OF BAYERISCHE MOTOREN WERKE AG HOPS ONTO A TOKYO FLIGHT THIS MONTH HIS MISSION WILL BE TO PULL OFF A SHOTGUN WEDDING HIS INTENDED HONDA MOTOR CO THE JAPANESE AUTO MAKER THAT MR PISCHETSRIEDER NOW ACKNOWLEDGES STANDS TO PLAY A KEY ROLE IN HELPING BMW TO REALIZE ITS NEW GLOBAL AMBITIONS THAT HAS BECOME INCREASINGLY CLEAR TO HIM SINCE BMW'S 12 BILLION ACQUISITION LAST MONTH OF AN 80 STAKE IN BRITAIN'S ROVER CARS HONDA HOLDS THE REMAINING 20 IN AN INTERVIEW YESTERDAY MR PISCHETSRIEDER EMPHASIZED THAT BMW AND HONDA NEED TO COME TO TERMS OVER THEIR NEW RELATIONSHIP HONDA OFFICIALS INITIALLY WERE IRKED OVER BMW'S COUP ESPECIALLY AFTER MAKING THEIR OWN ATTEMPT TO RAISE HONDA'S STAKE IN ROVER THEY DECLINED TO COMMENT YESTERDAY ON THE PENDING VISIT BUT MR PISCHETSRIEDER ARGUED THAT IT IS IN THE COMMON INTEREST OF ROVER AND HONDA TO CONTINUE THE RELATIONSHIP HE WENT SO FAR AS TO SUGGEST A LONGTERM RELATIONSHIP OF COOPERATION BETWEEN HONDA AND ROVER AND BETWEEN ROVER AND BMW IN SEPARATE PRODUCT SECTORS THE EXECUTIVE WASN'T SPECIFIC ABOUT JUST WHAT THAT COULD MEAN BUT HE DID INDICATE A DETERMINATION TO PRESS THE ISSUE SHOULD HONDA PRESIDENT NOBUHIKO KAWAMOTO PROVE RELUCTANT AN ABRUPT BREAKUP IS OUT OF THE QUESTION FOR HONDA AS FOR ROVER MR PISCHETSRIEDER SAID WE WILL MEET INDEED HONDA SUPPLIES MOST OF THE ENGINES TRANSMISSIONS AND DESIGNS FOR ROVER'S VEHICLES AND IT HOLDS VALUABLE LICENSES TO THESE COMPONENTS A SITUATION THAT MR PISCHETSRIEDER ADMITS COULD LEAD TO DISRUPTIONS IN ROVER PRODUCTION SHOULD HONDA ATTEMPT AN ABRUPT EXIT HE HOPES TO AVOID THAT BY FORGING A PARTNERSHIP THAT TRANSCENDS TYPICAL INDUSTRY RIVALRIES I BELIEVE THE GLOBAL AUTOMOBILE INDUSTRY IS IN A SITUATION TODAY WHERE IT IS NECESSARY TO GET OVER PREJUDICES OF ALL KINDS MR PISCHETSRIEDER SAID ADDING THAT COOPERATING WITH COMPETITORS CANNOT BE REGARDED SO NARROWLY ANY MORE STILL ANALYSTS ARE EXPECTING HONDA WILL TRY TO HOLD OUT FOR AS MUCH AS IT CAN GET IN THE END IT WILL BE A QUESTION OF MONEY AND HOW HONDA FEELS IT SHOULD BE COMPENSATED SAID DANIEL JONES AN AUTOINDUSTRY CONSULTANT AND PROFESSOR AT CARDIFF BUSINESS SCHOOL IN BRITAIN IN THE US MR PISCHETSRIEDER SAID HE HOPES TO USE BMW'S HEALTHY DISTRIBUTION NETWORK OF 350 DEALERS TO EXPAND SALES OPPORTUNITIES FOR THE LAND ROVER AN UPSCALE SPORTSUTILITY VEHICLE BUILT IN BRITAIN A QUARTER OF BMW DEALERS IN THE US ALREADY HAVE LAND ROVER FRANCHISES HE SAID NOTING HE HOPES TO DRAMATICALLY INCREASE THAT NUMBER MR PISCHETSRIEDER HOWEVER SAID THERE AREN'T ANY PLANS FOR BUILDING LAND ROVER VEHICLES IN THE US WHERE BMW IS CURRENTLY BUILDING AN ASSEMBLY PLANT IN SOUTH CAROLINA IN FACT HE DOUBTS THERE WILL EVER BE ROVER VEHICLES COMING OUT OF BMW PLANTS MUCH LESS GERMAN ENGINEERS OVERSEEING THEIR PRODUCTION HE SAID IF WE DID THAT THEN EVEN IF THE CARS HAD ROVER LABELS ON THEM THEY'D END UP COMING OUT LIKE BMWS HE SAID AND THAT'S EXACTLY WHAT WE DON'T WANT 9402180076 940218 ECONOMY CONSUMER PRICES DIDN'T INCREASE AT ALL IN JANUARY SITUATION HASN'T OCCURRED IN OVER FOUR YEARS INFLATION IS SEEN TAMED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OVERALL CONSUMER PRICES DIDN'T INCREASE AT ALL IN JANUARY ACCORDING TO THE LABOR DEPARTMENT SOME THING THAT HASN'T HAPPENED IN MORE THAN FOUR YEARS ANALYSTS SAID THE FIGURES SHOW YET AGAIN THAT INFLATION IS WELL UNDER CONTROL DESPITE A NOTICEABLY IMPROVING ECONOMY LAST MONTH'S STEADY PRICES FOLLOWED A MODERATE INCREASE IN DECEMBER WHEN PRICES WERE 02 ABOVE NOVEMBER'S THE BITTERLY COLD WEATHER DIDN'T DAMAGE CROPS ENOUGH TO FORCE UP PRICES AS THE COST OF FOOD DECLINED LAST MONTH CLOTHING TRANS PORTATION AND ENERGY PRICES DECLINED AS WELL WHILE HOUSING PRICES MODERATED MEDICALCARE AND ENTERTAINMENT PRICES BOTH ROSE 03 THE SAME AS THEY DID IN DECEMBER THE SOCALLED CORE RATE OF INFLATION WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY SECTORS WAS UP ONLY 01 COM PARED WITH A 02 RISE IN DECEMBER JANUARY'S CONSUMER PRICE REPORT MARKS THE FIRST IN WHICH THE LABOR DEPARTMENT HAS USED NEW SEASONAL ADJUSTMENTS TO HELP DIMINISH THE REPORT'S TENDENCY TO SHOW LARGER PRICE INCREASES AT THE BEGINNING OF THE YEAR AND SMALLER ONES AT THE END FOR THAT REASON ANALYSTS WERE UNSURE HOW MUCH CREDENCE TO PUT INTO THE JANUARY PRICE FIGURES I DON'T BELIEVE THE HEADLINE SHOULD READ 'INFLATION IS DEAD' BUT IF I SAW NO CHANGE AT ALL IN FEBRUARY AND MARCH I WOULD CONSIDER IT A REAL TREND SAID KATHRYN KOBE ECONOMIST FOR JOEL POPKIN & CO IN WASHINGTON WHAT'S WORRISOME ON THE PRICING FRONT HOWEVER IS THAT A SURVEY RELEASED BY THE PHILADELPHIA FEDERAL RESERVE BANK YESTERDAY SUGGESTS THAT PRICING PRESSURES COULD BE HEADED UP THE PIPELINE THE SURVEY FOUND THAT MORE MANUFACTURERS IN THE BANK'S DISTRICT WERE RAISING PRICES THAN IN THE PREVIOUS SURVEY MOST OF THEM STILL REPORTED NO PRICE CHANGES AT ALL HOWEVER IT ISN'T WHERE WE ARE THAT'S IMPORTANT BUT WHERE WE ARE HEADING AND AT THE INDUSTRIAL LEVEL WE ARE STARTING TO SEE MORE IN THE WAY OF PRICE INCREASES SAID JAMES GLASSMAN SENIOR ECONOMIST FOR CHEMICAL SECURITIES INC THE PHILADELPHIA FED REPORT CAUSED BOND PRICES TO TUMBLE DRAGGING DOWN STOCKS AS WELL IN ANOTHER REPORT THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE ROSE BY 5000 LAST WEEK TO 371000 ANALYSTS SAY THAT CLAIMS SO FAR THIS YEAR HAVE BEEN HIGHER THAN EXPECTED GIVEN THE STRENGTH OF THE ECONOMY ONE POSSIBLE EXPLANATION IS TEMPORARY BUSINESS CLOSINGS BECAUSE OF SEVERE WINTER WEATHER THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MARKER OF LABORMARKET CONDITIONS ROSE TO 375750 IN THE LATEST REPORTING WEEK FROM 373250 THE WEEK BEFORE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE PRICE INDEXES 19821984=100 AND PERCENTAGE CHANGE FOR THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR JANUARY THE PERCENTAGE CHANGES FROM THE PREVIOUS MONTH ARE SEASONALLY ADJUSTED 9402180074 940218 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 5/16 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 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 344 30 DAYS 348 60 DAYS 354 90 DAYS CERTIFICATES OF DEPOSIT 274 ONE MONTH 277 TWO MONTHS 284 THREE MONTHS 303 SIX MONTHS 337 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 331 ONE MONTH 342 THREE MONTHS 360 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 337 60 DAYS 340 90 DAYS 345 120 DAYS 351 150 DAYS 356 180 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 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 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 717 60 DAYS 723 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 717 60 DAYS 726 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 530 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 9402180073 940218 MARKETING & MEDIA HEARST WILL LAUNCH HOMENET SERVICES IN MULTIMEDIA THAT ARE HOMERELATED BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEARST CORP SAID IT IS LAUNCHING A SERIES OF MULTIMEDIA SERVICES ON HOMEORIENTED TOPICS CALLED HOMENET ONE OF THE FIRST PROJECTS OF HEARST'S YEAROLD NEW MEDIA & TECHNOLOGY DIVISION HOMENET WILL SERVE AS AN UMBRELLA DESIGNATION FOR A VARIETY OF ELECTRONIC PRODUCTS INCLUDING CDROMS AND ONLINE COMPUTER SERVICES MANY OF THE PRODUCTS WILL BE TIED INTO AREAS COVERED BY HEARST'S MAGAZINES INCLUDING POPULAR MECHANICS HOUSE BEAUTIFUL AND GOOD HOUSEKEEPING AND WILL CARRY THE MAGAZINES' NAMES AS BRANDS THERE COULD FOR EXAMPLE BE A HOUSE BEAUTIFUL CDROM ON HOME DECORATING ALL THE MAJOR MEDIA COMPANIES ARE RACING FEVERISHLY TOWARD THE ELECTRONIC FUTURE ALREADY PARTS OF MANY MAGAZINES CAN BE READ ON COMPUTER SCREENS THROUGH ONLINE SERVICES THE HEARST EFFORT STANDS OUT HOWEVER BECAUSE IT ISN'T WEDDED TO A SINGLE FORMAT AND BECAUSE IT APPEARS TO BE READY TO MARKET PRODUCTS FASTER THAN SOME COMPETITORS' EFFORTS ALFRED C SIKES FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION AND HEAD OF HEARST'S NEW MEDIA DIVISION SAID HOMENET PLANS TO LAUNCH ABOUT 10 PRODUCTS IN THE NEXT 12 MONTHS HE SAID THE AVERAGE INVESTMENT FOR EACH PRODUCT IS EXPECTED TO BE BETWEEN 250000 AND 400000 IT IS OUR STRONG VIEW THAT JUST PUTTING MAGAZINES ON LINE ISN'T THE WAY TO GO SAID MR SIKES WE SEE POPULAR MECHANICS HOUSE BEAUTIFUL AND THE REST AS BRINGING US EXPERTISE BRAND NAMES AND A SUBSCRIBER BASE BUT THE PRODUCTS CREATED WILL BE MUCH MORE THAN JUST ELECTRONIC VERSIONS OF THE MAGAZINES HE SAID MR SIKES SAID HOMENET WILL DELIVER INTERACTIVE INFORMATION ON SUCH TOPICS AS HOME RENOVATION DECORATING AND RECIPES FOR ENTERTAINING HOMENET WILL DISTRIBUTE PRODUCTS FROM INDEPENDENT PRODUCERS AS WELL AS ONES DEVELOPED BY HEARST HEARST SAID IT PLANS TO LAUNCH AN ONLINE COMPUTER SERVICE UNDER THE HOMENET NAME LATE THIS YEAR PROBABLY THROUGH PRODIGY OR AMERICA ONLINE AND WILL BEGIN MARKETING CDROM TITLES UNDER THE HOMENET NAME BY FALL IN ADDITION TO COMPUTERS HEARST PLANS TO DELIVER HOMENET PRODUCTS TO CONSUMERS' TELEVISION SETS RECENTLY HEARST ANNOUNCED A JOINT PROJECT WITH A NUMBER OF CANADIAN COMPANIES TO DISTRIBUTE ONLINE CONSUMER SERVICES THROUGH A CABLE TELEVISION COMPANY CALLED UBI THE SERVICE IS SCHEDULED TO START ON A SMALL SCALE IN THE SPRING OF 1995 HEARST SAID HOMENET WILL PROVIDE A SERVICE ON UBI WHEN THAT PROJECT BEGINS INDUSTRY REACTION TO HEARST'S PLANS WAS GENERALLY POSITIVE THIS SOUNDS LIKE THE FIRST MAJOR MEDIA COMPANY GOING IN A MULTIMEDIA DIRECTION THAT HAS INSTANT RETURNS SAID CHRISTOPHER MEIGHER A FORMER TIME INC MAGAZINE EXECUTIVE WHO RECENTLY STARTED HIS OWN MULTIMEDIA COMPANY THEY ARE GOING AFTER A BOOMER AUDIENCE AS WE ARE AND THESE PEOPLE LIKE USING THE NEW MEDIA WHEN IT GIVES THEM PERSONALIZED INFORMATION BRUCE THORP MEDIA ANALYST FOR PROVIDENT NATIONAL BANK IN PHILADELPHIA SAID THIS IS CLEARLY THE DIRECTION A COMPANY LIKE HEARST OUGHT TO BE GOING BUT THE BIG QUESTION CONTINUES TO BE WHO IS THE AUDIENCE FOR THIS AND WHEN WILL IT BE FINANCIALLY WORTHWHILE TO SPEND THE BIG BUCKS REQUIRED 9402180072 940218 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY THE BIATHLON ISN'T WON WITH AN AMERICAN GUN BUT OUR AMMO IS OK BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL KEEN OBSERVERS OF THE OLYMPIC BIATHLON A CONTEST THE SCANDINAVIANS THOUGHT UP IN A FIT OF HYPOTHERMIC DELIRIUM HAVE NEVER UNTIL NOW ASKED WHAT DOES THIS HAVE TO DO WITH AMERICAN COMPETITIVENESS IN A CHANGING GLOBAL ECONOMY WAKE UP KEEN OBSERVERS ASK YOURSELF WHY A SILVERHAIRED 74YEAROLD RUSSIAN NAMED MIKHAIL T KALASHNIKOV GOT A RECEPTION THAT CAN ONLY BE DESCRIBED AS ELVISIAN WHEN HE POPPED IN ON AMERICA'S BIGGEST ANNUAL GUNS AND AMMO TRADE SHOW LAST MONTH IN DALLAS THE ANSWER AS EVERY GUN NUT KNOWS IS THAT HE IS A LIVING LEGEND THE DESIGNER OF HISTORY'S MOST POPULAR MILITARY RIFLE THE AK47 ASSAULT RIFLE ACCLAIMED FROM THE MEKONG DELTA TO THE KHYBER PASS AND BEYOND GIENVIED VIET CONGENDORSED NO BOONIE RAT THIS SIDE OF WORLD WAR II WOULD BE CAUGHT WITHOUT ONE UPWARD OF 50 MILLION COPIES SOLD NOW ASK YOURSELVES WHY DIETER ANSCHUTZ GETS EQUALLY REVERENTIAL RECEPTIONS WHEREVER STRAIGHT SHOOTERS GATHER THE RIFLES HE DESIGNS AT THE FOURTHGENERATION FAMILYOWNED FIRM JG ANSCHUTZ GMBH IN ULM GERMANY SELL ONE AT A TIME AND DON'T WIN WARS THEY WIN MEDALS HE IS THE KALASHNIKOV OF ACCURACY NO SELFRESPECTING OLYMPIC RIFLE SHOOTER LEAVES HOME WITHOUT AN ANSCHUTZ NO OLYMPIC BIATHLETE INCLUDING EVERY ONE OF THE FOURMAN AND SIXWOMAN AMERICAN BIATHLON TEAM AND ROUGHLY 155 OTHERS FROM 40ODD COMPETING NATIONS WILL VENTURE OUT INTO THE LILLEHAMMER SNOW WITHOUT AN ANSCHUTZ MODEL 1827BT FORTNER SYSTEM STRAIGHT PULL 22 CALIBER LONG RIFLE SLUNG OVER A SHOULDER COST 368950 RETAIL IN THE US INCLUDING CARRYING HARNESS AND SLING HOW IN THE WORLD COULD AMERICA ALLOW THIS TO BE HOW COULD THE LAND OF THE FREE AND HOME OF THE EXCEPTIONALLY WELLARMED BRAVE A NATION THAT SHOT ITS WAY TO INDEPENDENCE AND TAMED THE WILD WEST A PLACE WHERE PEOPLE AND GUNS ARE AS CLOSE AS LIPS AND TEETH HOW CAN THE UNITED STATES OF KABLOOEY NOT MAKE THE WORLD'S BEST GUNS HAS IT LOST ALL SELFRESPECT AMERICA IS TO GUNS WHAT HOLLAND IS TO TULIPS SWITZERLAND IS TO WATCHES AND FRANCE IS TO WINE THE US HAS 221267268 GUNS AND COUNTING FIFTY MILLION GUN OWNERS AN AVERAGE OF 44 GUNS PER OWNER AMERICANS GIVE CUDDLY LITTLE 22S AND 410S TO THEIR CHILDREN AT CHRISTMAS LISTEN TO PRESIDENT CLINTON I CAN STILL REMEMBER THE FIRST DAY WHEN I WAS A LITTLE BOY PUTTING A CAN ON TOP OF A FENCE POST AND SHOOTING A 22 AT IT I CAN STILL REMEMBER THE FIRST TIME I PULLED A TRIGGER ON A 410 SHOTGUN NOTICE THAT WILD BILL DIDN'T SAY WHETHER HE ACTUALLY HIT THAT CAN ON THE FENCE POST NO MATTER THE PROBLEM IS THAT OLYMPIC SHOOTERS DON'T SHOOT AT TIN CANS IN THE SUMMER GAMES THEY SHOOT AT A BULL'SEYE THE SIZE OF A DIME 104 MILLIMETERS 50 METERS AWAY IN THE BIATHLON THEY RACE ON CROSSCOUNTRY SKIS UNTIL THEIR HEARTS ARE BEATING LIKE THUMPER ON SPEED THEN STOP SUDDENLY TRY TO PUMP FIVE BULLETS INTO A TARGET 50 METERS AWAY OFTEN THROUGH HOWLING WIND AND BLOWING SNOW THEN RACE OFF AND DO IT AGAIN RABBITS TO ROCKS TO RABBITS OVER AND OVER THEY SHOOT FROM A PRONE POSITION AT A TARGET THE SIZE OF A SILVER DOLLAR 45 MM AND STANDING UP AT A SAUCERSIZED TARGET 115 MM I'D LOVE TO USE AN AMERICAN RIFLE BUT WE JUST DON'T HAVE ONE SAYS R DUNCAN DOUGLAS A 28YEAROLD MEMBER OF THE US BIATHLON TEAM INDEED AMERICAN GUN MAKERS SURRENDERED THE ACCURACY BUSINESS LONG AGO FAT LAZY AND RESTING ON THEIR LAURELS THEY THREW UP THEIR HANDS AT THE FIRST CHALLENGE AS IF TO SAY DON'T SHOOT DIETER DON'T SHOOT BUT IT'S WORSE THAN THAT IT'S DETROIT ALL OVER AGAIN THE AMERICAN FIREARMS INDUSTRY CAN'T HACK IT EVEN IN A NATION OF HAPPY FIREARMS CONSUMERS GUN NUTS OR NOT THE INDUSTRY IS IN WHAT THEY CALL STRUCTURAL DECLINE WITH OUTDATED TECHNOLOGY AGING PRODUCTION LINES BAD QUALITY CONTROL AMERICAN GUN PRODUCTION SLUMPED TO 24 MILLION LAST YEAR FROM THREE MILLION THE YEAR BEFORE MEANWHILE IMPORTS CLIMBED TO AN ESTIMATED 32 MILLION LAST YEAR EVEN IN DETROIT'S DARKEST DAYS AUTO MAKERS HAD ENOUGH PRIDE AND SELFRESPECT TO MAINTAIN PRESTIGIOUS HIGHTECH RACERS NOT AMERICA'S 1256 GUN MANUFACTURERS FAMOUS NAMES LIKE REMINGTON WINCHESTER MARLIN MOSSBERG AND SAVAGE GAVE UP WITHOUT A FIGHT THE LAST RIFLES MANY OF THEM MADE THAT COULD SHOOT OLYMPIC STRAIGHT ARE '60S VINTAGE REMINGTON AND WINCHESTER PULLED OUT OF THE TARGET MARKET AFTER WORLD WAR II OPTING FOR MASS MARKETING SAYS E ALAN JOHNSON PRESIDENT OF PRECISION SALES INTERNATIONAL INC US IMPORTER OF ANSCHUTZ RIFLES YOU JUST CAN'T MASS MARKET TARGET RIFLES I'M CONFIDENT A GOOD GUNSMITH OR ARMS MAKER COULD MAKE A GOOD COMPETITION RIFLE IN AMERICA BUT THEY HAVE A RECORD OF NOT STICKING WITH SUCH PROJECTS SAYS GARY ANDERSON TWOTIME OLYMPIC GOLD MEDALIST AND DIRECTOR OF THE US SHOOTING TEAM FOUNDATION IT WAS THE SAME SAD STORY WITH OLYMPIC AMMUNITION ELEY OF BRITAIN FIOCCHI OF ITALY OLYMP OF RUSSIA WORLD DEMAND FOR FIOCCHI LOWTEMPERATURE BIATHLON AMMO IS SO HIGH THAT SHOOTERS MUST MAKE RESERVATIONS OR BOOK CASES OF IT WELL IN ADVANCE OF COMPETITION ON THE OTHER HAND PUTTING MOST AMERICAN 22 CALIBER AMMO INTO AN ANSCHUTZ IS THE MORAL EQUIVALENT OF PUTTING KETCHUP ON TRUFFLES BUT AMERICA'S OLDEST BIGGEST AMMO MAKERS NAMELY REMINGTON AND WINCHESTER JUST DIDN'T CARE EVEN WHEN HENRY CROSS CHAIRMAN OF THE US SHOOTING TEAM TOLD SAD STORIES ABOUT HOW FOREIGN AMMO MAKERS GAVE THEIR BEST STUFF TO THEIR OWN SHOOTERS WHILE US ATHLETES GOT THE LEFTOVERS BY 1990 DR CROSS CONVINCED RON MASON PRESIDENT OF FEDERAL CARTRIDGE CO OF ANOKA MINN THAT THIS SITUATION HAD TO BE RECTIFIED IN A SKUNK WORKS PAINTED RED WHITE AND BLUE A FEDERAL TEAM OF TWO DOZEN TECHNICIANS WENT TO WORK OUT CAME FEDERAL GOLD MEDAL 22 ULTRA MATCH USING IT AT THE 1992 SUMMER GAMES IN BARCELONA LAUNI MEILI AND BOB FOTH WON GOLD AND SILVER MEDALS RESPECTIVELY THE FIRST MEDALS USING US AMMO IN THREE DECADES FEDERAL INVITED THESE WINNERS TO A BIG PARTY IN SEPTEMBER AND ALL THE SKUNK WORKS WORKERS GOT TO TOUCH THE GOLD MEDAL SAYS MR MASON FEDERAL IS NOW THE PRIMARY OFFICIAL SUPPLIER FOR THE US BIATHLON TEAM WHICH IS KEEPING SOME FIOCCHI IN RESERVE JUST IN CASE THIS DOESN'T MEAN AMERICANS WILL CLEAN UP IN THE BIATHLON EVEN THOUGH IT'S THE CLOSEST THING TO A REDBLOODED ALLAMERICAN GUNSANDAMMO EVENT IN THE WINTER OLYMPICS INDEED SINCE IT BECAME AN OLYMPIC SPORT IN 1960 AMERICANS HAVE NEVER COME CLOSE TO WINNING A MEDAL IN THE BIATHLON ANSCHUTZES OR NO ANSCHUTZES WE DON'T LIKE TO LEAK STATE SECRETS BUT THE REASON IS OBVIOUS AMERICANS CAN'T SHOOT STRAIGHT IN THE COLD WHEN THEY GET EXCITED KEEN OBSERVERS WHO DON'T BELIEVE THIS MIGHT WANT TO ASK THEMSELVES WHY IT IS THAT EVEN THOUGH A ZILLION HUNTERS TAKE TO THE WOODS EACH FALL AMERICA'S DEER POPULATION KEEPS EXPLODING 9402180071 940218 SEGA OF TOKYO SAYS EARNINGS TO PLUNGE FOR THE FISCAL YEAR TOKYO HIGHFLYING VIDEOGAME MAKER SEGA ENTERPRISES LTD SAID IT EXPECTS EARNINGS IN THE YEAR ENDING MARCH 31 TO PLUNGE REFLECTING UNDERLYING WEAKNESS IN THE COMPANY'S MAINSTAY VIDEOGAME MARKETS SEGA OFFICIALS CONFIRMED A REPORT IN THE NIHON KEIZAI SHIMBUN THAT THE COMPANY'S CONSOLIDATED PRETAX PROFIT WILL DROP 62 TO 22 BILLION YEN 212 MILLION FROM 5918 BILLION YEN THE YEAR EARLIER THE COMPANY ALSO ESTIMATES AN 8 DECLINE IN GROUP SALES TO 385 BILLION YEN FROM 41623 BILLION YEN THE BAD NEWS COMES JUST DAYS AFTER MARKETRESEARCH FIRMS ANNOUNCED THAT SEGA HAD DECISIVELY DEFEATED RIVAL NINTENDO CO IN THE KEY US MARKET FOR HOME VIDEOGAME MACHINES SEGA BLAMED THE REVISION ON ECONOMIC SLUGGISHNESS IN EUROPE AND ON THE STRONG YEN WHICH MAKES PRODUCTS EXPORTED FROM JAPAN MORE EXPENSIVE OVERSEAS AND LOWERS THE YENDENOMINATED VALUE OF OVERSEAS SALES A COMPANY SPOKESMAN SAID SEGA EXPECTS A RECOVERY NEXT YEAR THANKS TO PLANS TO LAUNCH A LINE OF NEW TOYS AIMED AT YOUNGER CHILDREN AND TO OPEN THE FIRST OF ITS VIRTUALREALITY BASED THEME PARKS IN JAPAN SEGA'S DOWNWARD REVISION FOLLOWS A SIMILAR ANNOUNCEMENT SEVERAL MONTHS AGO BY ITS MAIN COMPETITOR NINTENDO OF KYOTO DURING THE PAST SEVERAL YEARS BOTH GAME MAKERS CONSISTENTLY OUTPERFORMED JAPAN'S MORE TRADITIONAL COMPUTER AND CONSUMERELECTRONICS COMPANIES THANKS TO THEIR FOCUS ON GENERATING PROFITS FROM SOFTWARE RATHER THAN FROM HARDWARE EVEN AS SEGA REVISED ITS EARNINGS DOWNWARD HOWEVER SONY CORP REPORTED EARNINGS THAT SUGGESTED IT MAY BE BACK ON THE ROAD TO HEALTH SEGA AND NINTENDO BOTH HOPE TO RECAPTURE THE HIGH GROUND WITH NEW GAME MACHINES TO BE RELEASED OVER THE NEXT 12 MONTHS ANALYSTS HOWEVER HAVE SAID THAT BOTH COMPANIES WILL NEED TO ACT TO COUNTER THE EROSION OF THEIR TRADITIONAL RELIANCE ON GAME SOFTWARESTEPS THAT NINTENDO HAS BEEN SLOWER TO MAKE THAN HAS SEGA 9402180070 940218 POTOMIC WATCH YOU SCRATCH MY BACK I'LL SCRATCH BILL'S BY PAUL A GIGOT WHY WOULD THE US CHAMBER OF COMMERCE SUPPOSEDLY A STAUNCH DEFENDER OF AMERICAN SMALL BUSINESS DO A COMPLETE POLICY REVERSAL AND TRY TO RESURRECT THE DYING CLINTON HEALTH CARE PLAN THE ANSWER IS ANOTHER ILLUSTRATION IF ONE MORE WERE NEEDED OF WHY BIG BUSINESS IS SUCH AN UNRELIABLE FRIEND OF A FREE ECONOMY LET'S LIFT THE VEIL TO SEE HOW CORPORATE SELFINTEREST IS DRIVING AN EFFORT TO HIJACK THE NATION'S LARGEST SUPPOSEDLY GRASSROOTS BUSINESS LOBBY THINK BACK TWO WEEKS AS VIRTUALLY ALL OF AMERICAN BUSINESS LINED UP AGAINST CLINTONCARE THE POOHBAHS OF THE BUSINESS ROUNDTABLE HAD RESISTED WHITE HOUSE PLEADINGS AND ENDORSED AN ALTERNATIVE THE NATIONAL ASSOCIATION OF MANUFACTURERS SHOWED ADMIRABLE SPINE AND EVEN THE CHAMBER AFTER AN EMBARRASSING PUBLIC FLIPFLOP REJECTED THE CLINTON PLAN THAT PHALANX RAISED THE BLOOD PRESSURE AT JOHN DINGELL'S HOUSE ENERGY AND COMMERCE COMMITTEE THE CLINTON PLAN'S FIRST REAL CONGRESSIONAL GATE THE DUKE OF DETROIT IS USED TO TREATING THAT BODY AS HIS PRIVATE FIEF BUT BUSINESS'S UNITED FRONT HAS SPOOKED MANY OF HIS DEMOCRATIC VASSALS IN PARTICULAR HE DOESN'T HAVE THE VOTES TO PASS AN EMPLOYER MANDATE WHICH WOULD FORCE BUSINESSES TO PAY MOST HEALTH COSTS WHILE GOVERNMENT SETS ALL THE RULES MR DINGELL KNOWS THAT WITHOUT A MANDATE CLINTONCARE IS A CORPSE IF BUSINESS WON'T FOOT THE BILL GOVERNMENT WILL HAVE TO RAISE TAXES SOME FORM OF HEALTH REFORM COULD STILL PASS BUT NOT THE RADICAL GERMANSTYLE SYSTEM THE WHITE HOUSE HAS DESIGNED THAT'S WHY THE CLINTONS TALK ABOUT COMPROMISING ON EVERYTHING EXCEPT MANDATES WHICH ARE THE HOOK IN THE FISH OF THE MIDDLE CLASS MR DINGELL NEEDS AT LEAST SOME BUSINESS COVER TO BAIT THE HOOK HE FOUND IT AT THE CHAMBER'S HEALTHPOLICY COMMITTEE WHICH MET THIS WEEK AND VOTED 167 TO ENDORSE AN EMPLOYER MANDATE THUS REVERSING CHAMBER TESTIMONY OF ONLY TWO WEEKS AGO THIS MIGHT BE FAIR ENOUGH IF THE ARGUMENTS WERE EVENHANDED BUT I'M TOLD THE MEETING HAD THE AIR OF A STAGED EVENT DOMINATED BY LARGE BUSINESSES WITH A FINANCIAL STAKE IN CLINTONCARE SMALL BUSINESS BARELY HAD A VOICE THOUGH 96 OF THE CHAMBER'S 215000 MEMBERS HAVE FEWER THAN 100 EMPLOYEES ONE OF THE LOUDEST MANDATE CHEERLEADERS FOR EXAMPLE WAS CHRYSLER LOBBYIST WALTER MAHER FORCEFUL AND PASSIONATE HE'S MR DINGELL'S PAL AND PRIVATESECTOR ALTER EGO IT'S NO SECRET THAT CHRYSLER STANDS TO BENEFIT AS MUCH AS ANY US COMPANY FROM CLINTONCARE AS AN OLDLINE MANUFACTURER CHRYSLER CARRIES HUGE HEALTH CARE LIABILITIES FROM ITS GENEROUS LABOR CONTRACTS IT WOULD LOVE TO PASS THOSE OFF ONTO TAXPAYERS AND SMALL BUSINESS SO WOULD FORD AND GM THROUGH A SUBSIDIARY WHICH ALSO ENDORSED MANDATES DESPITE THEIR RECENT SOARING PROFITS THE BIG THREE ALSO HAD AN ALLY IN THE CHAIRMAN OF THE CHAMBER HEALTH COMMITTEE ROBERT PATRICELLI A WASHINGTON HEALTH WONK GOING BACK TO THE 1960S MR PATRICELLI NOW RUNS FASTGROWING VALUE HEALTH INC A MANAGEDCARE COMPANY IN AVON CONN WHAT ARE VALUE HEALTH'S SPECIALTIES WELL WOULD YOU BELIEVE DRUG AND MENTALHEALTH BENEFITS BOTH OF WHICH WOULD GET BIG NEW SUBSIDIES UNDER THE CLINTON PLAN EVEN MORE INTRIGUING LAST MONTH VALUE HEALTH WON A CONTRACT FROM FORD AND THE UNITED AUTO WORKERS TO ADMINISTER A DRUG BENEFITS PROGRAM FOR 275000 PEOPLE NATIONWIDE THAT'S WORTH A COOL 90 MILLION A YEAR VALUE HEALTH ALREADY HAS CHRYSLER'S DRUG BUSINESS IN MICHIGAN SAYS A SPOKESWOMAN AND IS BIDDING FOR IT NATIONWIDE TOO AND MORE COINCIDENCE THE PATRICELLI COMMITTEE ALSO RECOMMENDED THAT WORKING SPOUSES NOT BE COVERED UNDER THEIR HUSBAND'S OR WIFE'S COMPANY INSURANCE THIS IS ALSO A BOON MEGABUCKS SAYS ONE BUSINESS SOURCE FOR CHRYSLER WHICH OFFERS SUCH A RICH PLAN THAT IT USUALLY LURES SPOUSES BUT IT ALSO MEANS THAT FAMILY MEMBERS FORCED TO JOIN DIFFERENT PLANS MIGHT HAVE TO SEE DIFFERENT DOCTORS NO DOUBT THESE MEN THINK THEY'RE ACTING OUT OF MOTIVES HIGHER THAN SELFINTEREST AND MAYBE THEY ARE BUT WHAT ARE THE CHAMBER'S SMALL BUSINESS MEMBERS SUPPOSED TO THINK THEY'RE THE ONES WHO GET STUCK WITH BIG NEW COSTS UNDER THE CLINTON PLAN WHILE THE FAT CATS WHO DO THE VOTING GET THE GRAVY THE CHAMBER SEEMS TO BE PROVING ONCE AGAIN THAT GOVERNMENT POWER IS USUALLY BENT TO SERVE THE POWERFUL ALL OF THIS IS SET FOR A SHOWDOWN VOTE AT THE NEXT CHAMBER BOARD MEETING ON FEB 28 THE PATRICELLIMAHER LINE WILL BE THAT IT ISN'T ENDORSING CLINTONCARE PER SE BECAUSE THAT INVOLVES AN 80 EMPLOYER MANDATE EMPLOYEES PAY 20 BUT THE CHAMBER'S ENDORSEMENT OF A 50 MANDATE IS THE GERMAN MODEL AND HAS BEEN THE WHITE HOUSE FALLBACK STRATEGY ALL ALONG ONCE THIS HOOK IS IN PLACE THE PRICE CONTROLS AND RATIONING WILL COME EVENTUALLY AS THEY HAVE IN GERMANY PRESIDENT CLINTON KNOWS THIS WHICH IS WHY HE HAILED THE CHAMBER ACTION YESTERDAY MORNING IT MAY BE TOO MUCH TO EXPECT A BUSINESS LOBBY TO STAND FOR LIBERTY BUT THE US CHAMBER CAN'T EVEN SEEM TO STAND FOR THE GENERAL BUSINESS INTEREST INSTEAD IT FEEDS REDMEAT RHETORIC TO THE PROVINCES EVEN AS ITS INSIDERS TRY TO RESCUE JOHN DINGELL IF THE CHAMBER IS MERELY GOING TO ECHO THE VIEWS OF CHRYSLER AND THE UAW WHY DOES IT EVEN EXIST 9402180069 940218 BUSINESS BRIEF ALBERTA ENERGY CO RIGHTS PLAN WOULD REQUIRE BUYER TO SOLICIT ALL HOLDERS ALBERTA ENERGY CO SAID IT WILL SEEK APPROVAL AT ITS ANNUAL MEETING APRIL 13 FOR A SHAREHOLDERRIGHTS PLAN THAT WOULD FORCE WOULDBE SUITORS TO BID FOR ALL THE COMPANY'S VOTING SHARES THE CALGARY ALBERTA ENERGY AND NATURALRESOURCES COMPANY SAID ITS BOARD ADOPTED THE PLAN WHICH TAKES EFFECT IMMEDIATELY AS PART OF THE NORMAL GOVERNANCE PROCESS IT SAID IT ISN'T AWARE OF ANY IMPENDING CHANGE IN OWNERSHIP ALBERTA ENERGY SAID THAT UNDER THE PLAN ANY TAKEOVER OFFER MUST BE EXTENDED TO ALL ITS SHAREHOLDERS IT SAID THAT FOR THE BIDDER TO ACQUIRE ANY SHARES UNDER SUCH AN OFFER AT LEAST 50 OF SHARES NOT HELD BY THE BIDDER MUST BE DEPOSITED 9402180068 940218 BUSINESS BRIEF BOMBARDIER INC COMAIR AIRLINE ORDERS 5 JETS TOTAL VALUE IS 80 MILLION BOMBARDIER INC MONTREAL SAID COMAIR EXERCISED OPTIONS FOR FIVE OF BOMBARDIER'S CANADAIR REGIONAL JET AIRCRAFT WITH A TOTAL VALUE OF 80 MILLION COMAIR HAD ORDERED 20 OF THE 50PASSENGER JETS IN 1991 WITH OPTIONS FOR AN ADDITIONAL 20 AIRCRAFT DELIVERIES OF THE ORIGINAL 20 JETS ARE TO BE COMPLETED BY THE END OF 1994 WITH THE FIVE NEW ORDERS SCHEDULED FOR DELIVERY BY AUGUST 1995 COMAIR A UNIT OF COMAIR HOLDINGS INC CINCINNATI IS A REGIONAL AIRLINE THAT COORDINATES ITS SCHEDULING WITH THAT OF DELTA AIR LINES BOMBARDIER IS A MAKER OF TRANSPORTATION EQUIPMENT 9402180067 940218 THE BUSINESS OF LAW LAWYWERS AND CLIENTS BY AMY STEVENS THESE DAYS IT SEEMS EVERYBODY WANTS TO BE A MULTIMEDIA STAR LAWYERS LIKE OTHERS IN THE BUSINESS OF SELLING PROFESSIONAL SERVICES ARE RUSHING TO MARKET THEMSELVES TO THE TELECOMMUNICATIONS COMPUTER AND ENTERTAINMENT INDUSTRIES TROUBLE IS NOBODY AGREES WHAT IT REALLY MEANS TO BE A MULTIMEDIA LAWYER OR AN INTERACTIVE LAW FIRM OR WHETHER THERE IS SUCH A THING AS PRACTICING ON THE INFORMATION SUPERHIGHWAY SOME LAW FIRMS TOUTING THEIR MULTIMEDIA EXPERTS SIMPLY MEAN THEY REPRESENT SOFTWARE COMPANIES IN PATENT DISPUTES OTHER LAW FIRMS DO REGULATORY AND LOBBYING WORK FOR CABLE COMPANIES AND A FEW EVEN TRY TO DRAW DISTINCTIONS BETWEEN INFORMATIONSUPERHIGHWAY LAWYERS WHO HANDLE TELECOMMUNICATIONS WORK AND MULTIMEDIA LAWYERS WHO MAKE DEALS BETWEEN HIGHTECH AND ENTERTAINMENT COMPANIES MOSTLY THOUGH LAW FIRMS SEEM TO APPLY THESE VOGUISH LABELS TO WHATEVER SHAPE THEIR PRACTICE HAPPENS TO BE TAKING AT THE MOMENT MANATT PHELPS & PHILLIPS OF LOS ANGELES WHOSE CLIENTS INCLUDE MOVIE STARS AND STUDIOS BROUGHT IN SEVEN INTELLECTUALPROPERTY LAWYERS FROM ANOTHER FIRM IN AUGUST AND IMMEDIATELY ISSUED A NEWS RELEASE TRUMPETING MANATT'S ENTRANCE INTO THE INTERACTIVE AND MULTIMEDIA ARENA THAT ARENA EXPLAINS ENTERTAINMENT PARTNER JOSEPH HORACEK IS WHERE HOLLYWOOD'S HIGHEST LEVELS OF TALENT MEET COMPUTER EXECUTIVES I HAVE CALLED A NUMBER OF LARGE INDEPENDENT PRODUCTION COMPANIES OR STUDIOS TRYING TO EDUCATE THEM AS BETWEEN THE TWO WORLDS MR HORACEK SAYS THE FIRM HAS YET TO COMPLETE A SINGLE MULTIMEDIA DEAL BUT MR HORACEK SAYS MORE THAN A DOZEN ARE IN THE WORKS SEVERAL OTHER LOS ANGELESBASED FIRMS HAVE RECENTLY MERGED THEIR ENTERTAINMENT AND INTELLECTUALPROPERTY DEPARTMENTS A FEW FIRMS READILY ADMIT THEY'RE TRYING TO LURE CLIENTS INTO UNCHARTED LEGAL TERRITORY IN PROMOTIONAL MATERIALS BOASTING ABOUT ITS CORPORATE AND TRADEMARKLAW WORK ON BEHALF OF A MAKER OF COMPUTER SOFTWARE FOR HOSPITALS NEW YORK'S PROSKAUER ROSE GOETZ & MENDELSOHN SAID IT IS ENTERING THE PRECEDENTLESS FIELD OF THE SOCALLED INFORMATION SUPERHIGHWAY PARTNER CAROLE HANDLER OF THE FIRM'S LOS ANGELES OFFICE SAYS THE FIRM WITHIN A MONTH WILL ESTABLISH A PRACTICE GROUP MADE UP OF ITS ATTORNEYS IN THE HIGHTECH INFORMATION SUPERHIGHWAY AREA FOR THE 650LAWYER SAN FRANCISCO FIRM PILLSBURY MADISON & SUTRO MULTIMEDIA DOESN'T INCLUDE AN ENTERTAINMENT COMPONENT PER SE BUT INSTEAD SEEMS TO MEAN MORE FREQUENT MEETINGS BETWEEN MEMBERS OF THE FIRM'S INTELLECTUAL PROPERTY AND TELECOMMUNICATIONS DEPARTMENTS THE FIRM'S 15MEMBER MEDIA TEAM FORMED SIX MONTHS AGO ALSO INCLUDES ANTITRUST AND TAX PARTNERS WE'RE PULLING TOGETHER NICHES OF OUR PRACTICE AREAS TO MARKET OUR MULTIMEDIA EXPERIENCE AND MEET EXISTING CLIENTS' DEMANDS SAYS MARY CRANSTON HEAD OF PILLSBURY'S TELECOMMUNICATIONS PRACTICE THE MEDIA TEAM IS DOING CORPORATE WORK FOR UNITS OF PACIFIC TELESIS GROUP A LONGSTANDING CLIENT OF PILLSBURY'S AND HAS HANDLED PATENT MATTERS FOR COMPUTER COMPANIES AT A TIME WHEN GLAMOROUS MEDIA DEALS LIKE VIACOM INC'S JUSTCOMPLETED BATTLE FOR PARAMOUNT COMMUNICATIONS INC ARE ALL THE RAGE NO MAJOR LAW FIRM WANTS TO BE LEFT BEHIND LIKE SOFTDRINK MAKERS WHO PUT THE SAME OLD STUFF IN NEW CANS LAW FIRMS IN MANY INSTANCES ARE SIMPLY REPACKAGING TRADITIONAL LEGAL FUNCTIONS SUCH AS LICENSING AND CORPORATE FINANCE THIS TYPE OF LEGAL WORK HAS EXISTED FOR A WHILE CONCEDES JOHN VALVA PUBLICRELATIONS SPOKESMAN FOR THE SAN FRANCISCO LAW FIRM FARELLA BRAUN & MARTEL IT'S JUST THAT ALL OF A SUDDEN MULTIMEDIA IS WHAT IT'S CALLED BUT THE HEAD OF FARELLA'S NEW MULTIMEDIA PRACTICE GROUP PARTNER BRUCE MAXIMOV SAYS THAT IT'S NOT ENOUGH JUST TO ENHANCE YOUR LEGAL SKILLS LAWYERS IN HIS GROUP HAVE ATTENDED UNIVERSITY COURSES ON SUCH SUBJECTS AS HOW TO DESIGN VIDEO GAMES HE SAYS CHICAGO'S 450LAWYER WINSTON & STRAWN FORMED ITS MULTIMEDIA PRACTICE GROUP SIX MONTHS AGO LOREN WITTNER PARTNER IN CHARGE OF MARKETING SAYS THE FIRM IS FOLLOWING IN THE FOOTSTEPS OF MAJOR ACCOUNTING FIRMS WHICH HAVE ORGANIZED THEMSELVES ALONG CLIENTINDUSTRY LINES BUT JON KLEMENS OF THE LEGAL CONSULTING FIRM ALTMAN WEIL PENSA INC SAYS THAT CREATING MULTIDISCIPLINARY TEAMS MAY CAUSE FRICTION OVER WHICH TRADITIONAL DEPARTMENT IS REALLY CONTROLLING THE CLIENT'S LEGAL WORK THE HYPE HAS MANY LAWYERS CARPING ABOUT THEIR COMPETITORS' CLAIMS EVERYBODY HAS A SLIDE IN THEIR PRESENTATION THAT SAYS INFORMATION SUPERHIGHWAY' OR MULTIMEDIA' THEN THEY MENTION THREE CLIENTS AND NO ONE'S EVER HEARD OF THEM SAYS HANK BARRY PARTNER IN CHARGE OF A 22ATTORNEY TECHNOLOGY PRACTICE GROUP AT THE SAN FRANCISCO LAW FIRM COOLEY GODWARD CASTRO HUDDLESON & TATUM AS A YOUNG LAWYER MR BARRY WORKED ON MOVIE DEALS AT A NEW YORK LAW FIRM NOW HIS CLIENTS ARE SILICON VALLEY STARTUP COMPANIES I THINK THERE ARE PROBABLY ONLY 10 LAWYERS IN THE COUNTRY WHO CAN LEGITIMATELY SAY THEY'VE DONE MAJORLEAGUE ENTERTAINMENT WORK AND MAJORLEAGUE HIGHTECH WORK SAYS MR BARRY WHO NUMBERS HIMSELF AMONG THEM HE REPRESENTED JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO TWO YEARS AGO IN ITS HIGHPROFILE DEAL WITH 3DO CO A MOUNTAIN VIEW CALIF MAKER OF INTERACTIVE GAMES AND EQUIPMENT BUT SAYS HE HASN'T BEEN INVOLVED IN ANY MULTIMEDIA TRANSACTIONS VALUED AT MORE THAN 10 MILLION WHAT THE BROUHAHA MAY BOIL DOWN TO IS AN ATTEMPT BY BIG FIRMS ESPECIALLY THOSE THAT HAD LOST MARKET SHARE TO SMALL INTELLECTUALPROPERTY BOUTIQUES TO REGAIN CLIENTS BY CLAIMING TO OFFER THEM ONESTOP SHOPPING MR KRUTH SAYS HE ISN'T TAKEN IN BY TRENDY TITLES WHEN HE WANTS TO HIRE A LAW FIRM HE LOOKS FOR A STRONG RECORD IN A PARTICULAR AREA OF THE LAW THERE'S NO SUCH THING AS MULTIMEDIA LAW HE SAYS WHAT THERE IS IS INTELLECTUALPROPERTY LAW CORPORATE LAW AND CONTRACT WORK AKIN TO ENTERTAINMENTINDUSTRY STUFF IT'S STILL THE SAME BASIC LEGAL SKILLS 9402180065 940218 BUSINESS BRIEF BOB EVANS FARMS INC RESTAURANT SEES PROFIT RISING DESPITE A JANUARY DOWNTURN BRUTALLY COLD WEATHER IN JANUARY KEPT DINERS AT HOME BUT BOB EVANS FARMS INC A RESTAURANT OPERATOR AND SAUSAGE MAKER SAID THE WEATHER MARKS ONLY A TEMPORARY SETBACK DANIEL EVANS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID STRONG PERFORMANCE EARLY IN THE FISCAL THIRD QUARTER ENDED JAN 31 MAKES HIM FEEL COMFORTABLE WITH ANALYSTS' ESTIMATES OF ABOUT 28 CENTS TO 30 CENTS A SHARE MR EVANS ALSO EXPRESSED COMFORT WITH FISCAL YEAR 1994 ESTIMATES OF ABOUT 115 A SHARE IN THE YEAREARLIER FISCAL THIRD QUARTER THE COLUMBUS OHIO COMPANY REPORTED NET INCOME OF 114 MILLION OR 27 CENTS A SHARE ON SALES OF 1695 MILLION FOR FISCAL 1993 NET WAS 431 MILLION OR 103 A SHARE ON SALES OF 6532 MILLION MR EVANS SAID STORMS ALSO FORCED THE COMPANY TO CUT BACK ON EXPANSION PLANS 9402180063 940218 BUSINESS BRIEF COCACOLA CO CAPITAL SPENDING FOR 1994 TO RECEIVE INCREASE OF 50 COCACOLA CO SAID IT WILL INCREASE 1994 CAPITAL SPENDING BY 50 TO 12 BILLION LARGELY FOR INTERNATIONAL PROJECTS THE ATLANTABASED SOFT DRINK COMPANY ALSO BOOSTED ITS DIVIDEND 15 TO 195 CENTS PAYABLE ON APRIL 1 TO HOLDERS OF RECORD MARCH 15 IN 1993 COCACOLA'S CAPITAL SPENDING WAS ABOUT 800 MILLION ANALYSTS SAID THE INCREASED BUDGET WAS IN LINE WITH EXPECTATIONS ABOUT 73 OF THE 1994 BUDGET IS FOR INTERNATIONAL SOFTDRINK OPERATIONS INCLUDING ABOUT 200 MILLION IN NEW MARKETS OF CHINA AND EAST CENTRAL EUROPE THE COMPANY SAID ANALYSTS SAID THEY EXPECT COCACOLA TO SPEND THE MONEY ON VENDING MACHINES FOUNTAIN EQUIPMENT AND OTHER PROJECTS TO SUPPORT EXPANSION OF ITS BRANDS IN NEW MARKETS 9402180062 940218 BUSINESS BRIEF LONE STAR INDUSTRIES INC BANKRUPTCY JUDGE CONFIRMS FIRM'S REORGANIZATION PLAN LONE STAR INDUSTRIES INC SAID FEDERAL BANKRUPTCY COURT JUDGE TINA L BROZMAN CONFIRMED THE COMPANY'S PLAN OF REORGANIZATION LONE STAR ADDED THAT AT THE CONFIRMATION HEARING THE EQUITY HOLDERS COMMITTEE WITHDREW OBJECTIONS TO CONFIRMATION OF THE PLAN LONE STAR SAID IT EXPECTS THAT DISTRIBUTIONS TO THE CREDITORS AND THE STOCKHOLDERS WOULD BEGIN IN MARCH THE CONSTRUCTIONMATERIAL COMPANY HAS BEEN OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE DECEMBER 1990 UNDER LONE STAR'S REORGANIZATION PLAN THE COMPANY INTENDS TO PAY BETWEEN 85 AND 100 OF ABOUT 570 MILLION IN UNSECURED CLAIMS ON A PRO RATA BASIS BUT COMMON SHAREHOLDERS WOULD SEE THEIR OWNERSHIP CUT TO ABOUT 45 WHILE PREFERRED SHAREHOLDERS WILL RECOVER BETWEEN 45 AND 60 OF THEIR CLAIMS 9402180060 940218 BUSINESS BRIEF TURNER CORP UNIT IS NAMED CONTRACTOR FOR COURTHOUSE IN MINNESOTA TURNER CORP UNIT TURNER CONSTRUCTION CO WILL BE GENERAL CONTRACTOR FOR A 90 MILLION FEDERAL COURTHOUSE AND OFFICE BUILDING IN MINNEAPOLIS THE VALUE OF THE CONTRACT TO THE COMPANY WASN'T DISCLOSED NEW YORKBASED TURNER SAID ITS UNIT IS PART OF BPT COURTHOUSE ASSOCIATES LP A TEAM THAT WON THE GENERAL SERVICES ADMINISTRATION DESIGN/BUILD COMPETITION FOR THE PROJECT CONSTRUCTION IS SCHEDULED TO BEGIN IN APRIL AND TO BE COMPLETED IN THE FALL OF 1996 THE COMPANY SAID THE SITE WILL INCLUDE A 300000SQUAREFOOT COURTHOUSE AND OFFICE BUILDING A ONEACRE PUBLIC PLAZA AND A 202SPACE PARKING FACILITY THE COMPANY SAID 9402180059 940217 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL NORWAY'S JOHANN OLAV KOSS SET HIS SECOND WORLD RECORD IN AS MANY RACES TO BECOME THE FIRST DOUBLEGOLD MEDALIST OF THE OLYMPICS WITH A VICTORY IN THE MEN'S 1500 METERS THE 1992 OLYMPIC 1500 CHAMPION MR KOSS FINISHED IN 1 MINUTE 5129 SECONDS 031 SECOND BETTER THAN THE RECORD SET SIX WEEKS AGO ON THE SAME RINK BY RINTJE RITSMA OF THE NETHERLANDS MR KOSS WHO BROKE HIS OWN WORLD MARK IN SUNDAY'S 5000 HAD A BLISTERING FINISH YESTERDAY SKATING HIS FINAL LAP IN 2938 SECONDS SKATING FOUR PAIRS AFTER MR KOSS MR RITSMA WAS ON A WORLD RECORD PACE UNTIL THE FINAL LAP AND HE WAS GASPING FOR AIR COMING DOWN THE FINAL STRAIGHTAWAY HE WON THE SILVER IN 15199 FALKO ZANDSTRA OF THE NETHERLANDS FINISHED THIRD MR KOSS 25 ALSO IS THE WORLD RECORD HOLDER IN THE 10000 METERS WHICH IS SCHEDULED FOR SUNDAY NORWAY'S STINE LISE HATTESTAD CAPTURED THE WOMEN'S FREESTYLE MOGULS TITLE FROM FAVORED DONNA WEINBRECHT WHO FINISHED SEVENTH BUT ONE OF MS WEINBRECHT'S US TEAMMATES LIZ MCINTYRE TOOK THE SILVER MEDAL MS HATTESTAD SPED DOWN THE MOGULS COURSE IN 2951 SECONDS TO POST THE BEST POINTS SCORE 2597 MS MCINTYRE HAD THE BEST QUALIFYING SCORE AND WENT LAST YESTERDAY BUT WAS SLOWER THAN THE NORWEGIAN AND ENDED WITH 2589 POINTS RUSSIA'S ELIZAVETA KOJEVNIKOVA WON THE BRONZE WITH A SCORE OF 2581 AFTER POSTING THE FASTEST TIME 29 SECONDS THE BIG SURPRISE WAS THE POOR PERFORMANCE BY MS WEINBRECHT THE 1992 GOLD MEDALIST WHO WON SIX WORLD CUP RACES IN A ROW THIS SEASON MS WEINBRECHT WAS BEATEN BY MS HATTESTAD IN THE WORLD CUP RACE AT HUNDFJELLET SWEDEN JUST BEFORE THE OLYMPICS IN THE MEN'S COMPETITION JEANLUC BRASSARD EARNED CANADA'S FIRST GOLD MEDAL OF THE GAMES SERGEI SHOUPLETSOV OF RUSSIA FINISHED SECOND AND DEFENDING CHAMPION EDGAR GROSPIRON OF FRANCE WAS THIRD GERDA WEISSENSTEINER OF ITALY CAPTURED THE WOMEN'S LUGE TITLE BY A DOMINATING SEVENTENTHS OF A SECOND SHE LED FROM START TO FINISH MS WEISSENSTEINER FINISHED HER FOUR RUNS IN 3 MINUTES 15517 SECONDS WELL AHEAD OF SILVER MEDALIST SUSI ERDMANN OF GERMANY WHO FINISHED IN 316276 ANDREA TAGWERKER OF AUSTRIA WON THE BRONZE IN 316652 THE RUSSIAN HOCKEY TEAM BEAT UP ON AUSTRIA'S 91 BREAKING THE GAME OPEN WITH SEVEN GOALS IN THE SECOND PERIOD RUSSIA IS 21 WHILE AUSTRIA IS WINLESS IN THREE GAMES FINLAND 30 CLINCHED A SPOT IN THE QUARTERFINALS WITH A 40 SHUTOUT OVER WINLESS NORWAY AND GERMANY FELL TO 21 WITH A 10 LOSS TO THE CZECH REPUBLIC WHICH ALSO HAS A RECORD OF 21 9402180058 940217 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE AND JARED SANDBERG CBS DID AN EXCELLENT JOB WITH THE WOMEN'S SUPER G IT SHOWED THE RUNS OF 12 SKIERS FROM TOP TO BOTTOM OR TOP TO SPILL EVEN FOR THOSE WHO KNEW THAT DIANN ROFFESTEINROTTER'S TIME HAD HELD UP FOR THE GOLD MEDAL THE TAPED COVERAGE BROUGHT HOME THE TENSION OF AN ATHLETE WHO HAS TO SKI FIRST AND THEN WAIT TO SEE IF ANYONE ELSE SKIS FASTER COVERAGE ENDED WITH SIMULTANEOUS TAPE OF THE GOLD AND SILVER MEDAL WINNERS AS THEY TOOK SEVERAL KEY GATES PROVIDING A VIVID DEMONSTRATION OF WHY ONE WAS FASTER THAN THE OTHER THERE HAS BEEN A PRICE TO PAY FOR ALL THAT HIGHQUALITY VIDEOTAPE HOWEVER CAMERAMEN OFTEN HAVE TO SET UP HOURS BEFORE AN EVENT BEGINS AND THEY WIND UP SPENDING EXTENDED STRETCHES IN THE NORWEGIAN COLD DOCTORS HAVE TREATED SEVERAL CAMERAMEN FOR FROSTBITTEN FINGERS COVERAGE OF TONYA HARDING ON TUESDAY NIGHT TOOK ON THE TONE OF ONE OF THOSE GHOST STORIES INVENTED TO SCARE CHILDREN AROUND A CAMPFIRE TONYA'S COMING CLOSER AND CLOSER CBS SHOWED US WITH TAPE OF HER DEPARTURE FROM PORTLAND THEN HER DEPARTURE FROM SEATTLE SHE'S OVER THE ATLANTIC VIEWERS WERE TOLD LATER NOT SINCE THE APPROACH OF THE KILLER BEES ON WEDNESDAY MORNING HARRY SMITH KEPT UP THE TALES OF THE CRYPT ATMOSPHERE TELLING VIEWERS THAT INTEREST WAS HIGH AS THE WOMEN'S FIGURESKATING COMPETITION CREEPS CLOSER MR SMITH SEIZING AN EARLY LEAD IN THE CONTEST FOR OLYMPIC BADTASTE MEDAL OF THE DAY WENT OUT OF HIS WAY TO BRING UP THE SAD FACT THAT US LUGER CAMMY MYLER'S BROTHER HAS CANCER HE PRETTY MUCH LOCKED UP THE MEDAL BY ADDING THAT MS MYLER HAD CONSULTED DAN JANSEN FOR ADVICE ON HOW TO COPE WITH THE PRESSURES OF COMPETITION AND A CANCERAFFLICTED SIBLING CBS MICROPHONES ARE PICKING UP INTERESTING REMARKS FROM ATHLETES MS ROFFESTEINROTTER WAS CHARMING IN TELLING HER FATHER BY TRANSATLANTIC PHONE THAT I TOLD YOU GUYS NOT TO COME AND NOW IT'S MY OWN DAMN FAULT CANADIAN LLOYD EISLER WHO ALONG WITH ISABELLE BRASSEUR WON THE BRONZE MEDAL IN PAIRS SKATING WAS LESS CHARMING IN REMARKING AS THE JUDGES' SCORES WERE POSTED FOR THEIR PERFORMANCE I DON'T GIVE A RAT'S A CBS SEEMS TO HAVE TAKEN TO HEART CONTINUED COMPLAINTS IT HAS RECEIVED OVER PRODIGY SERVICES CO'S ONLINE CHAT FORUM WITH CBS PERSONNEL AMONG OTHER THINGS USERS HAVE COMPLAINED ABOUT BANTERING COMMENTARY YESTERDAY LORI LABADIE WROTE THAT TUESDAY NIGHT'S COVERAGE HAD IMPROVED BECAUSE IT CONTAINED A LOT LESS YACKETYYAK ROB AND TRISH HOWLAND SAW ROOM FOR IMPROVEMENT BETWEEN THE COMMERCIALS THE UP CLOSE AND PERSONAL' PIECES AND THE HAPPY TALK' WE SEE LESS OF THE OLYMPICS THAN WE SEE OF CBS STILL THE HOWLANDS ADDED YOUR PAIRS COVERAGE OF THE LAST GROUP WAS GREAT SCOTT HAMILTON KNOWS HIS STUFF BUT THE IMPROVEMENT HASN'T STEMMED SOME SUBSCRIBERS' THREATS TO SWITCH TO TNT BOYCOTT OLYMPIC SPONSORS AND TUNE THEIR SATELLITES TO PICK UP CANADIAN BROADCASTS ON TUESDAY NIGHT WITH THE PAIRS FIGURESKATING FINALS AS THE BIG DRAW CBS WAS WATCHED BY 273 OF THE NATION'S 942 MILLION TV HOUSEHOLDS ACCORDING TO AC NIELSEN CO THAT WAS THE FOURTHHIGHESTRATED PRIMETIME WINTER OLYMPICS BROADCAST IN HISTORY ABC WITH ITS POPULAR SITCOM ROSEANNE IN THE LINEUP MOUNTED THE STRONGEST COMPETITION DRAWING 140 FOR THE NIGHT NBC DREW 100 FOR THE FIRST FOUR NIGHTS OF THE GAMES CBS HAS AVERAGED 248 WELL ABOVE THE 186 IT GUARANTEED ADVERTISERS 9402180057 940217 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES AMONG MOGULS OF OLYMPUS ONLY TWO ARE TOP BANANAS BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER WHAT DO YOU CALL THE KING AND QUEEN OF THE MOGULS MAGNATES TYCOONS POOBAS NABOBS MAYBE ALL OF THOSE THINGS BUT CERTAINLY JEANLUC BRASSARD AND STINE LISE HATTESTAD THEY WON THE OLYMPIC MOGULS COMPETITIONS HERE YESTERDAY MEANING THAT THEY BUMPED AND JUMPED DOWN THE BUMPSTREWN 230METER COURSE QUICKER AND SLICKER THAN ANYBODY ELSE FURTHER INFORMATION HOWEVER WAS HARDER TO COME BY LIKE WHY DO THEY CALL THE KNEEHIGHSIZED BUMPS MOGULS AND WHY WOULD ANYONE WANT TO SUBJECT HIS OR HER SACROILIAC TO THE STRESSES INVOLVED IN THE STRANGE EXERCISE A DEFINITIVE ANSWER TO Q1 WAS NOT ATTAINABLE OR AT LEAST NOT HERE THAT'S WHAT THEY CALL THEM SAID MOST OF THE PEOPLE I ASKED WHO DID NOT SIMPLY SHRUG ONE PERSON THOUGHT IT WAS A NORWEGIAN WORD LIKE SLALOM OR SKI ANOTHER VOLUNTEERED THAT IN FRANCE THEY CALL THEM BOSSES THAT MEANS MOGULS I GUESS ANSWERS TO THE SECOND QUESTION VARIED TOO IT SUITS MY PERSONALITY BETTER THAN REGULAR SKIING SAID BRONZE MEDALIST EDGAR GROSPIRON OF FRANCE WHOSE TRAINING REGIMEN IS HEAVY ON SKY DIVING WINDSURFING MOUNTAIN BIKING AND PLAYING HOCKEY THESE ARE PEOPLE WHO LIKE A SPECIAL CHALLENGE SAID PETER JUDGE COACH OF THE CANADIAN TEAM YES PETER BUT DID THEY CONSULT THEIR SACROILIACS THERE ARE THINGS I CAN TELL YOU FOR SURE HOWEVER MOGULS ARE PART OF THE GENRE CALLED FREESTYLE SKIING WHOSE OTHER COMPONENTS ARE AERIALS AND BALLET AERIALS IS LIKE HIGH DIVING WITHOUT WATER IT MAKES ITS DEBUT ON THE OLYMPIC CALENDAR BEGINNING MONDAY BALLET IS A LOWERFLYING DISCIPLINE OF OTHER STUNTS THAT WEREN'T MEANT TO BE PERFORMED ON SKIS EITHER IT IS NOT AN OLYMPIC SPORT YET MOGULS ARE THE SENIOR MEMBER OF THE GANG THEY WENT OLYMPIC THE LAST TIME AROUND IN 1992 THE SPORT'S ORIGINS ARE IN DISPUTE AMERICANS CLAIM THEY DEVELOPED IT IN THE 1950S AS AN OFFSHOOT OF THE HOTDOG SKIING MOVEMENT THAT WAS JUST BEGINNING TO TERRORIZE THE RECREATIONAL SLOPES NORWEGIANS WHO CLAIM TO HAVE INVENTED EVERYTHING CONNECTED WITH SKIING SAY THAT THEIR TWO RUUD BROTHERS THAT'S PRONOUNCED RUDE HAD BEGUN DOING THAT SAME STUFF IN SHOWS 20 YEARS EARLIER EITHER WAY TRYING IT YOURSELF IS A GOOD WAY TO GET YOUR LIFT TICKET LIFTED AS MIGHT BE EXPECTED THE OLYMPIZATION OF BUMPSKIING MEANT PUTTING A LOT OF JUDGES IE OFFICIALS INTO THE ACT THE COURSE CRAWLS WITH THEM FIVE TO JUDGE THE FORM OF THE RACERS' TURNS AND TWO TO GRADE THE TWO JUMPS THAT PUNCTUATE THE RUNS TURNFORM SCORES YOU'RE SUPPOSED TO KEEP YOUR SHOULDERS LEVEL KNEES TOGETHER AND SKIS DOWN CONTRIBUTE 50 TO A SKIER'S SCORE AND THE JUMPS 25 PLAIN OLD GETTIN'DOWN TIME ALSO COUNTS FOR 25 UNDER A FORMULA TOO COMPLEX TO EXPLAIN HERE ONE OF THE BEST THINGS ABOUT MOGULS IS ITS GLOSSARY OF TERMS THE HELIOCOPTER IS A 360DEGREE TURN IN THE AIR WHEN A SKIER SOARS HIGH FOR A JUMP HE OR SHE IS SAID TO HAVE ACHIEVED BIG AIR TO SKI A COURSE SKILLFULLY IS TO SHRED IT ROUTINES ARE PERFORMED TO WHAT THE SPORT'S HANDBOOK CALLS LOUD ROCK MUSIC ALTHOUGH I DIDN'T KNOW THERE WAS ANY OTHER KIND HAVING PASSED THE FINISH LINE COMPETITORS DON'T WEEP OR CLUTCH FLORAL BOUQUETS BUT LEAP ABOUT AND WAVE THEIR SKI POLES IF THEIR EQUIPMENTMANUFACTURER SPONSORS PERMITTED IT THEY'D PROBABLY SPIKE THEIR SKIS AND THE ACTIVITY GETS POINTS FOR POLITICAL CORRECTNESS MEN AND WOMEN PERFORM UNDER THE SAME FORMAT OVER THE SAME COURSE ALTHOUGH YESTERDAY AT LEAST THE ARCHAIC FORM OF LADIES FIRST WAS PRACTICED THE SCENE AT YESTERDAY'S RUN WAS FESTIVE INDEED IT BEGAN WITH A NASASTYLE COUNTDOWN STARTING AT 30 SECONDS WHEN IT HIT SINGLE DIGITS THE ANNOUNCER INTERSPERSED IGNITION ENGINES ON WITH THE DIGITS AT ZERO AS FIRSTSKIER ELENA KOROLEVA LAUNCHED HER RUN THE LOUDSPEAKER SYSTEM EMITTED A COCK'S CROW R&R BLASTED AND A LOT OF THE 12000 OR SO SPECTATORS YELLED WOO WHY DO THEY USE A COCK'S CROW THAT'S UNUSUAL FOR THE OLYMPICS ISN'T IT SAID A FELLOW STANDING NEAR ME I SAID I DIDN'T KNOW WHY AND THOUGHT THAT YES IT WAS UNUSUAL A GOOD TIME WAS HAD BY ALL ESPECIALLY THE WINNERS THAT WAS PARTLY BECAUSE BOTH OUTCOMES QUALIFIED AS UPSETS MR BRASSARD A 21YEAROLD FROM NEAR MONTREAL DEFEATED MR GROSPIRON THE 1992 GOLD MEDALIST AND THE SPORT'S LONGTIME MALE NO 1 HE FINISHED THIRD AMONG THE NORWEGIAN HATTESTAD'S VICTIMS WAS DONNA WEINBRECHT OF WEST MILFORD NJ WHOSE CREDENTIALS MATCHED MR GROSPIRON'S SHE FINISHED SEVENTH HER WORST SHOWING IN A HALFDOZEN YEARS I JUST GOT NUMB MS WEINBRECHT SAID LATER IT WAS LIKE AN OUTOFBODY EXPERIENCE BOTH WINNERS PROFESSED TO BE MORE DOWN TO EARTH I'M NOT MUCH OF A SHOWOFF I LIKE MOGULS BECAUSE YOU DON'T JUST SKI YOU JUMP TOO SAID THE 27YEAROLD MS HATTESTAD WHO LISTED HER FAVORITE DRINK AS MINERAL WATER MR BRASSARD SAID HE TOOK UP THE SPORT BECAUSE THE LAURENTIAN MOUNTAIN ON WHICH HE LEARNED TO SKI MOUNT OLYMPIA BY NAME WAS NO HIGHER THAN A MOGULS RUN AND DOWNHILLS THAT TAKE ABOUT 10 SECONDS ARE NO FUN REMINDED THAT HE HAD THE THIRDSLOWEST TIME IN THE RUN BUT PREVAILED ON FORM HE SHRUGGED SPEED ISN'T EVERYTHING BUT THE TWO WINNERS WILL NEVER PASS FOR STICKS IN THE SNOW THE NICEST THING ABOUT WINNING MR BRASSARD WAS ASKED THE SHOW IT WAS GREAT HUH HE REPLIED AND WHAT WAS MS HATTESTAD SAYING TO HERSELF AT THE STARTING GATE I DON'T KNOW I ALWAYS TALK TO MYSELF THERE BUT I NEVER REMEMBER WHAT I SAY 9402180056 940218 BUSINESS BRIEF RALLY'S HAMBURGERS INC FOURTHPERIOD LOSS REFLECTS CHARGE FOR RESTRUCTURING RALLY'S HAMBURGERS INC REPORTED A LOSS FOR THE FOURTH QUARTER INCLUDING A CHARGE OF 119 MILLION TO CLOSE 26 RESTAURANTS AND RESTRUCTURE THE BUSINESS FOR THE QUARTER THE BURGER CHAIN REPORTED A NET LOSS OF 101 MILLION OR 77 CENTS A SHARE COMPARED WITH NET INCOME OF 28 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 33 TO 452 MILLION FROM 34 MILLION THE COMPANY BASED IN LOUISVILLE KY SAID THE RESTRUCTURING PRIMARILY RESULTED FROM THE INTENSE COMPETITION AMONG BURGER RESTAURANTS ANALYSTS HAVE EXPRESSED CONCERN THAT THE CHAIN EXPANDED TOO QUICKLY AND WAS ILLPREPARED FOR THE BURGER PRICE WARS STILL THE COMPANY EXPECTS TO OPEN 45 TO 55 NEW COMPANYOWNED UNITS IN 1994 AND ITS FRANCHISEES ARE EXPECTED TO OPEN 45 TO 50 NEW RESTAURANTS AS OF FEB 17 RALLY'S HAD 523 RESTAURANTS OPERATING IN 23 STATES 9402180055 940218 BUSINESS BRIEF SIGNET BANKING CORP BANK IS OFFERING 60 MILLION TO ACQUIRE PIONEER FINANCIAL SIGNET BANKING CORP AGREED TO ACQUIRE PIONEER FINANCIAL CORP IN A TRANSACTION VALUED AT 60 MILLION FOR SIGNET AN INSTITUTION WITH 118 BILLION IN ASSETS THE TAKEOVER WOULD GIVE IT 10 ADDITIONAL BRANCHES PIONEER BASED IN CHESTER VA IS THE HOLDING COMPANY FOR PIONEER FEDERAL SAVINGS BANK WHICH HAS 400 MILLION IN ASSETS SIGNET RICHMOND VA PLANS TO BUY PIONEER IN A TAXFREE STOCK SWAP UNDER THE PROPOSED TERMS PIONEER SHAREHOLDERS WILL RECEIVE 06232 SHARES OF SIGNET COMMON STOCK FOR EACH SHARE THEY OWN IN PIONEER SUBJECT TO ADJUSTMENT UNDER CERTAIN CIRCUMSTANCES BASED ON SIGNET'S CLOSING STOCK PRICE OF 38 ON WEDNESDAY THE SALE HAS A VALUE OF 60 MILLION OR 2368 FOR EACH PIONEER SHARE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SIGNET WAS QUOTED AT 37875 DOWN 125 CENTS IN NASDAQ STOCK MARKET TRADING PIONEER TRADED UNCHANGED AT 2175 9402180054 940218 PUROLATOR SLATES CUTBACK TULSA OKLA PUROLATOR PRODUCTS CO SAID IT WILL SHUT DOWN THE GLASS FIBER MANUFACTURING PROCESS AT ITS HENDERSON NC PLANT AS OF APRIL 15 THE COMPANY SAID IT PLANS TO PURCHASE GLASS FIBER FROM OUTSIDE SOURCES PUROLATOR WILL RESERVE ABOUT 950000 IN THE FIRST QUARTER FOR ONETIME COSTS ASSOCIATED WITH SHUTTING DOWN THE PROCESS ANNUAL SAVINGS ARE ESTIMATED AT 500000 THE MOVE WILL AFFECT ABOUT 100 OF THE 360 WORKERS AT THE FACTORY 9402180053 940218 BUSINESS BRIEF ALUMAX INC TWO ALUMINUMSHEET PLANTS TO CLOSE PARING 600 JOBS ALUMAX INC HURT BY A WORLDWIDE GLUT OF ALUMINUM SAID IT WILL CLOSE TWO ALUMINUMSHEET PLANTS CUTTING 600 JOBS IN CALIFORNIA AND ILLINOIS THE NORCROSS GA ALUMINUM COMPANY ALSO SAID IT WILL SPEND AN UNDISCLOSED AMOUNT TO UPGRADE ITS OTHER PLANTS THE COST IS INCLUDED IN ITS PREVIOUSLY ANNOUNCED FOURTHQUARTER CHARGE OF 574 MILLION FOR THE QUARTER THE COMPANY REPORTED A NET LOSS OF 218 MILLION OR 54 CENTS A SHARE ON SALES OF 5928 MILLION ALUMAX WHICH WAS SPUN OFF FROM AMAX INC LAST YEAR EMPLOYS ABOUT 14000 PEOPLE THE TWO PLANTS AFFECTED BY THE CUTS ARE IN RIVERSIDE CALIF AND MORRIS ILL THE RIVERSIDE SHEET OPERATION WILL STOP TAKING NEW ORDERS IMMEDIATELY AND WILL CLOSE PERMANENTLY AS SOON AS EXISTING ORDERS ARE FILLED CASTPLATE PRODUCTION WILL CONTINUE AT THAT PLANT OFFICIALS SAID THE MORRIS PLANT WILL REMAIN OPEN UNTIL THE END OF 1994 ALUMAX AND OTHER ALUMINUM COMPANIES HAVE BEEN BATTERED BECAUSE WORLDWIDE ALUMINUM INVENTORIES ARE TOO HIGH PUSHING PRICES DOWN TO HISTORIC LOWS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ALUMAX CLOSED AT 26375 DOWN 75 CENTS 9402180052 940218 BUSINESS BRIEF PLY GEM INDUSTRIES INC FOURTHPERIOD NET ROSE 66 AS SALES POSTED 20 SURGE PLY GEM INDUSTRIES INC REPORTED HIGHERTHANEXPECTED EARNINGS FOR THE FOURTH QUARTER AS SALES JUMPED 20 THE NEW YORKBASED MAKER AND DISTRIBUTOR OF SPECIALTY PRODUCTS FOR THE HOMEIMPROVEMENT INDUSTRY SAID NET INCOME ROSE 66 TO ALMOST 3 MILLION OR 23 CENTS A SHARE FROM 18 MILLION OR 16 CENTS A SHARE ANALYST ESTIMATES HAD CALLED FOR NET TO RISE 17 TO ABOUT 21 MILLION OR 18 CENTS OR 19 CENTS A SHARE YESTERDAY IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING PLY GEM'S SHARES ROSE 125 OR 51 TO 25625 SALES GREW TO 1829 MILLION FROM 1518 MILLION THE COMPANY ATTRIBUTED THE JUMP TO ITS STRATEGY OF CROSSSELLING ITS VARIOUS PRODUCT LINES 9402180051 940218 BUSINESS BRIEF ORANGE & ROCKLAND UTILITIES INC FOURTHQUARTER PROFIT FELL BY 39 REVENUE ROSE 11 ORANGE & ROCKLAND UTILITIES INC POSTED SHARPLY LOWER FOURTHQUARTER PROFIT BECAUSE OF EXPENSES RELATED TO CRIMINAL INVESTIGATIONS OF THREE FORMER EMPLOYEES THE UTILITY'S NET INCOME FELL 39 TO 58 MILLION OR 36 CENTS A SHARE FROM 95 MILLION OR 63 CENTS A SHARE MEANWHILE REVENUE ROSE 11 TO 2547 MILLION FROM 2291 MILLION ORANGE & ROCKLAND BASED IN PEARL RIVER NY SAID INVESTIGATORY AND LITIGATION EXPENSES TOTALED 61 MILLION FOR ALL OF 1993 WITH ABOUT 5 MILLION INCURRED IN THE FOURTH QUARTER A FORMER VICE PRESIDENT PLEADED GUILTY TO MAKING ILLEGAL CAMPAIGN CONTRIBUTIONS RECEIVING COMMERCIAL BRIBES AND GRAND LARCENY TWO OTHER FORMER EMPLOYEES PLEADED GUILTY TO STEALING FROM THE UTILITY THROUGH A PHONE BILLING SCHEME ORANGE & ROCKLAND SAID THAT INVESTIGATION EXPENSES OF BETWEEN 3 MILLION AND 6 MILLION ARE ESTIMATED FOR THIS YEAR ORANGE STOCK FELL 625 CENTS OR 16 TO CLOSE AT 37625 A SHARE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9402180050 940218 DOVER INDUSTRIES TO SELL UNIT BURLINGTON ONTARIO DOVER INDUSTRIES LTD SAID IT AGREED TO SELL ITS TAYLOR GRAIN DIVISION TO LONDON AGRICULTURAL COMMODITIES INC TERMS WEREN'T DISCLOSED THE SALE IS SCHEDULED TO TAKE EFFECT APRIL 29 THE TAYLOR GRAIN DIVISION OPERATES COUNTRY ELEVATORS IN SOUTHWESTERN ONTARIO HANDLING WINTER WHEAT CORN AND SOY BEANS 9402180049 940218 REVIEW & OUTLOOK EDITORIAL PLAYING POST OFFICE LAST YEAR THE US SENATE PUT ASIDE ALL ITS OTHER BUSINESS FOR A LENGTHY DEBATE ON THE SEXUAL HARASSMENT ALLEGATIONS AGAINST SENATOR BOB PACKWOOD IN CONTRAST HOUSE LEADERS HAVE REFUSED TO ADDRESS COURT DOCUMENTS IN WHICH FEDERAL PROSECUTORS MAINTAIN SEVERAL MEMBERS EMBEZZLED TAXPAYERS' MONEY FROM THE HOUSE POST OFFICE WHY THE DOUBLE STANDARD HOUSE LEADERS HAVE TRIED FOR TWO YEARS TO DECLARE THE POST OFFICE SCANDAL A DEAD LETTER BUT IT KEEPS TURNING UP SIX POSTAL EMPLOYEES WERE CONVICTED ON FINANCIAL OR DRUG CHARGES THE LAST WAS HOUSE POSTMASTER ROBERT ROTA WHO PLEADED GUILTY LAST JULY TO A 20YEAR CONSPIRACY WITH MEMBERS THAT GAVE THEM CASH FROM POST OFFICE FUNDS WHILE MAKING IT APPEAR THEY WERE BUYING STAMPS FOR OFFICIAL USE SPECIFIC FACTS PROVIDED BY THE PROSECUTORS LED REPORTERS TO SPECULATE THAT CONGRESSMAN A WAS WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI AND CONGRESSMAN B WAS REP JOE KOLTER WHO LOST HIS SEAT IN 1992 BUT NO EFFORT HAS BEEN MADE BY THE HOUSE TO FIND OUT THE OTHER MEMBERS WHO EMBEZZLED MONEY THROUGH ROTA THE JUSTICE DEPARTMENT'S INVESTIGATION HAS SLOWED TO A CRAWL THE ORIGINAL GRAND JURY HAD TO DISBAND AND NEW CLINTONAPPOINTED PROSECUTORS HAVE EXPANDED THE MANDATE OF THE SECOND JURY AT THIS PACE NOTHING MORE MAY BE KNOWN BY THE TIME VOTERS GO TO THE POLLS IN NOVEMBER A HOUSE TASK FORCE DID PROBE THE POST OFFICE SCANDAL BACK IN 1992 BUT ROTA WAS STILL COVERING UP HIS INVOLVEMENT AND ITS REPORT ENDED UP ONLY REVIEWING POST OFFICE PROCEDURES NOT THE BEHAVIOR OF ANY MEMBERS THE TASK FORCE CONCLUDED THAT ANY VIOLATIONS WOULD HAVE TO BE HANDLED BY THE HOUSE ETHICS COMMITTEE BUT THE ETHICS COMMITTEE HAS REFUSED TO INVESTIGATE FURTHER CHAIRMAN JIM MCDERMOTT CLAIMS JUSTICE HAS ASKED HIM NOT TO ACT WHILE ITS CRIMINAL PROBE GRINDS ON BUT REP ERNEST ISTOOK A FRESHMAN REPUBLICAN NOTES IT'S NEITHER NEW NOR UNUSUAL TO CONDUCT PARALLEL INVESTIGATIONS JUSTICE'S CONCERN IS CRIMINAL ACTIVITY THE HOUSE HAS A DUTY TO POLICE THE ETHICAL BEHAVIOR OF ITS MEMBERS HE SAYS SO LONG AS CONGRESS DOESN'T GRANT IMMUNITY TO ANY WITNESS THERE'S NO HARM IN HAVING ETHICS LOOK AT THIS LAST WEEK MR ISTOOK AND 54 COSPONSORS DEMANDED A HOUSE INVESTIGATION THEY INCLUDE MODERATE DEMOCRATS JIM COOPER OF TENNESSEE AND TIM PENNY OF MINNESOTA THEIR MOTION WILL BE VOTED ON SOMETIME NEXT WEEK AND IT'S UNCLEAR IF DEMOCRATIC LEADERS WILL DEMAND THAT THEIR MEMBERS OPPOSE IT TAKE THE CASE OF REP ROSTENKOWSKI A 35YEAR HOUSE VETERAN WHO FACES THREE OPPONENTS IN HIS CHICAGO PRIMARY NEXT MONTH POLLS SHOW HIM WITH ONLY 25 SUPPORT AND A THIRD OF VOTERS UNDECIDED VOTERS HAVE BEEN LEFT TO ASSUME THE WORST ABSENT A CREDIBLE HOUSE EFFORT TO GET AT THE TRUTH THE SPECTACLE OF HOUSE MEMBERS NEXT WEEK PROTECTING A FEW BAD POST OFFICE APPLES CAN ONLY SERVE TO INCREASE PUBLIC MISTRUST 9402180048 940218 CENCALL PLANS TO CHANGE NAME DENVER CENCALL COMMUNICATIONS INC SAID IT WILL CHANGE ITS NAME TO ONECOMM CORP IF SHAREHOLDERS APPROVE THE PLAN IN MAY CENCALL IS BUILDING A DIGITAL MOBILE COMMUNICATIONS NETWORK FOR CELLULAR PHONE SERVICE PAGING TWOWAY RADIO AND DATA TRANSMISSION ON ONE MOBILE OR PORTABLE HANDSET THE COMPANY SAID IT WILL BEGIN SERVICE IN THE SECOND QUARTER 9402180047 940218 BUSINESS BRIEF MASTERCARD INTERNATIONAL INC SPRINT AND WORLD CUP PANEL ARE NAMED IN LOGO LAWSUIT MASTERCARD INTERNATIONAL INC SUED SPRINT CORP AND WORLD CUP USA 1994 INC FOR ALLEGEDLY VIOLATING ITS EXCLUSIVE WORLDWIDE RIGHTS TO USE THE SOCCER COMPETITION'S TRADEMARK AND DESIGN LOGOS ON CARDBASED PAYMENT AND ACCOUNT ACCESS DEVICES AND OTHER SIMILAR PRODUCTS THE SUIT FILED IN FEDERAL COURT IN MANHATTAN ALLEGES THAT THE VIOLATION OCCURRED WHEN LOS ANGELESBASED WORLD CUP USA 1994 THE ORGANIZING COMMITTEE FOR THIS YEAR'S GAMES GRANTED THE LONGDISTANCE PHONE COMPANY THE RIGHT TO USE THE WORLD CUP MARKS IN ASSOCIATION WITH SPRINT'S TELEPHONE CALLING CARDS MASTERCARD ONE OF 11 WORLD CUP SPONSORS SAID IT LEARNED OF THE DEVELOPMENT LAST SEPTEMBER SPRINT KANSAS CITY MO SAID THE PREPAID CALLING CARDS AREN'T CREDIT DEVICES BUT ARE USED SOLELY TO ACCESS SPRINT SERVICES WE ARE SURPRISED AND DISAPPOINTED BY MASTERCARD INTERNATIONAL'S SUIT AND WE WILL TAKE APPROPRIATE LEGAL MEASURES TO VIGOROUSLY PROTECT OUR RIGHTS TO ISSUE AND MARKET WORLD CUP PREPAID CALLING CARDS THE COMPANY SAID WORLD CUP USA DECLINED TO COMMENT 9402180046 940218 INTERNATIONAL GLAXO'S PROFIT PLANS IN US BUOY INVESTORS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL GLAXO HOLDINGS PLC REPORTED BETTERTHANEXPECTED FIRSTHALF PRETAX PROFIT AND OUTLINED PLANS TO ASSEMBLE A US MANAGEDCARE VENTURE THAT COULD GO AGAINST COMPETITION CREATED BY MERCK & CO'S TAKEOVER OF MEDCO CONTAINMENT SERVICES INC GLAXO CHIEF EXECUTIVE SIR RICHARD SYKES PLAYED DOWN RECENT SPECULATION ABOUT A POSSIBLE ALLIANCE BETWEEN GLAXO AND PFIZER INC SUGGESTING IT MIGHT BE SOME TIME BEFORE HIS COMPANY'S PLANS FOR US MANAGEDCARE COOPERATION COME TO FRUITION BUT WE UNDERSTAND EXACTLY WHAT NEEDS TO BE DONE HE CLAIMED THE MERCKMEDCO DEAL TILTED WHAT PREVIOUSLY WAS A LEVEL PLAYING FIELD WE HAVE TO GET IT BACK ON AN EVEN KEEL AGAIN MERCK'S TAKEOVER OF MEDCO LAST YEAR COMBINED A GIANT DRUG MAKER WITH A COMPANY THAT MANAGES DRUG BENEFITS FOR HEALTH PLANS A SAVVY MOVE AT A TIME WHEN COMPANIES AND GOVERNMENTS AROUND THE WORLD ARE TRYING TO CONTROL HEALTHCARE COSTS BUOYANT PROFITS AND SIR RICHARD'S COMMENTS IMPRESSED INVESTORS GLAXO STOCK SOARED 37 PENCE 55 CENTS OR 55 TO 712 PENCE 1051 IN EXCEPTIONALLY HEAVY VOLUME EARLY THURSDAY BEFORE SURRENDERING SOME OF THE GAIN EASING TO 697 PENCE IN LATE LONDON TRADING PETER LAING A LONDON DRUG ANALYST WITH SALOMON BROTHERS INC SUGGESTED GLAXO'S UPBEAT REPORT COULD SPARK A CHANGE OF INVESTOR SENTIMENT TOWARD THE ENTIRE EUROPEAN PHARMACEUTICAL SECTOR AFTER MONTHS OF JUST LYING BACK THE INDUSTRY FINALLY SEEMS TO BE TAKING POSITIVE ACTION TO COUNTER THREATS TO ITS BUSINESS MR LAING SAID GLAXO SAID PRETAX PROFIT SPURTED 22 TO 1 BILLION 147 BILLION DURING THE FIRST HALF FROM 819 MILLION A YEAR EARLIER SALES CLIMBED AT AN EQUAL RATE TO 28 BILLION FROM 23 BILLION THE PREVIOUS YEAR GLAXO EXECUTIVES SAID THE ASSUMPTION OF MAJORITY CONTROL OF A PREVIOUS AFFILIATE IN INDIA ACCOUNTED FOR TWO PERCENTAGE POINTS OF THE FIRSTHALF SALES GAIN BUT ONLY AN INSIGNIFICANT CONTRIBUTION TO PRETAX PROFIT EXCLUDING CURRENCY FLUCTUATIONS FIRSTHALF SALES INCREASED 13 AND OPERATING PROFIT IN THE PERIOD ROSE 15 GLAXO SAID ESTABLISHED PRODUCTS THAT ACCOUNT FOR 79 OF GLAXO'S SALES GREW 9 DURING THE FIRST HALF MEASURED IN CONSTANT CURRENCY SALES OF FLAGSHIP ULCER DRUG ZANTAC ROSE 5 TO 12 BILLION LESS THAN HALF THE ULCERDRUG MARKET'S 11 GROWTHRATE DURING THE PERIOD ZANTAC'S SHARE OF GLAXO'S TOTAL SALES SLIPPED A PERCENTAGE POINT TO 43 AND WHILE IT REMAINED THE WORLD'S BIGGEST SELLING DRUG ZANTAC'S WORLDWIDE MARKET SHARE DECLINED TWO POINTS TO 36 9402180045 940218 BUSINESS BRIEF PROXYMED PHARMACY INC SERVICE DRUGS IS ACQUIRED IN TRANSACTION FOR NEW STOCK PROXYMED PHARMACY INC OF FORT LAUDERDALE FLA ACQUIRED SERVICE DRUGS A TAMPA FLABASED PHARMACYMANAGEMENT OPERATION PROXYMED SAID IT ISSUED 120000 COMMON SHARES FOR ALL ASSETS AND LIABILITIES OF SERVICE DRUGS AND OFFERED ADDITIONAL STOCK INCENTIVES OF AS MUCH AS 25 MILLION BASED ON FUTURE PERFORMANCE THROUGH ITS TWO UNITS C&B MEDICAL CONSULTANTS INC AND F&H MEDICAL CONSULTANTS INC SERVICE DRUGS OPERATES SIX PHARMACIES THAT EXCLUSIVELY SERVE MEMBERS OF HEALTHMAINTENANCE ORGANIZATIONS SERVICE DRUGS REPORTED REVENUE OF 425 MILLION IN 1993 THE COMPANY'S PRESIDENT H RAY HODGES WILL BE AN EXECUTIVE VICE PRESIDENT AND MEMBER OF THE BOARD AT PROXYMED 9402180044 940218 WHAT'S NEWS BUSINESS AND FINANCE CONSUMER PRICES DIDN'T INCREASE AT ALL IN JANUARY SOMETHING THAT HASN'T HAPPENED IN MORE THAN FOUR YEARS THE SEVERELY COLD WEATHER DIDN'T DAMAGE CROPS ENOUGH TO FORCE UP FOOD PRICES ANALYSTS SAID THE REPORT SHOWS AGAIN THAT INFLATION IS WELL UNDER CONTROL DESPITE THE IMPROVING ECONOMY BUT A SURVEY BY THE PHILADELPHIA FED SUGGESTED PRICING PRESSURES COULD BE DEVELOPING BOND PRICES PLUNGED AS THE PHILADELPHIA FED REPORT SPARKED INFLATION CONCERNS AND NEGATED THE POSITIVE IMPACT OF THE CONSUMERPRICES DATA THE TREASURY'S 30YEAR ISSUE LOST OVER ONE POINT AND ITS YIELD WAS 654 THE DOW JONES INDUSTRIALS FELL 1463 TO 392264 JAPAN'S HOSOKAWA DIRECTED HIS GOVERNMENT TO DRAFT A VOLUNTARY PLAN TO CUT ITS TRADE SURPLUS BOTH SIDES IN THE USJAPAN TRADE SHOWDOWN ARE WORKING TO DEFUSE TENSIONS THAT MARK A FLASH POINT FOR THE ECONOMIC SUPERPOWERS IN THE POSTCOLD WAR ERA THE US TRADE DEFICIT NARROWED IN DECEMBER BUT 1993'S TRADE GAP WIDENED TO 11578 BILLIONTHE BIGGEST IN FIVE YEARSFROM 845 BILLION IN 1992 THE US TRADE GAP WITH JAPAN GREW TO A RECORD 5932 BILLION LAST YEAR GE AND A DE BEERS UNIT WERE INDICTED BY A US GRAND JURY ON CHARGES THEY CONSPIRED TO FIX PRICES OF INDUSTRIAL DIAMONDS IN WORLD MARKETS BELL ATLANTIC IS RENEGOTIATING THE FINANCIAL TERMS OF ITS MULTIBILLIONDOLLAR ACQUISITION OF CABLE GIANT TCI IN THE WAKE OF A DECLINE IN ITS STOCK PRICE AND A CLOUDY OUTLOOK FOR TCI'S CASH FLOW THE BUNDESBANK CUT ITS DISCOUNT RATE TO 525 FROM 575 BUT STOPPED SHORT OF A BROADER MONETARY EASING THE MOVE BY THE GERMAN CENTRAL BANK TRIGGERED RATE REDUCTIONS IN AUSTRIA THE NETHERLANDS BELGIUM AND ITALY MICROSOFT SAYS IT HAS A PROTOTYPE PROGRAM THAT CAN DELIVER COMPUTERIZED VIDEO AND INTERACTIVE MULTIMEDIA SERVICES VIA PC HARDWARE FOR ONETENTH THE COST OF RIVAL TECHNOLOGIES VOLVO AND RENAULT AGREED TO DISMANTLE THEIR STRATEGIC ALLIANCE WHICH ONCE INCLUDED PLANS TO MERGE LOTUS AND AT&T ARE NEGOTIATING A VENTURE TO BRING NEW COMMUNICATIONS SERVICES BASED ON LOTUS SOFTWARE TO A MASS MARKET INDUSTRY INSIDERS SAID VIACOM FACES ANGER FROM BLOCKBUSTER SHAREHOLDERS AS THE PRICE OF ITS PLANNED ACQUISITION OF BLOCKBUSTER SINKS WITH THE PRICE OF VIACOM STOCK QVC CHAIRMAN DILLER RESTRUCTURED THE HOMESHOPPING COMPANY TWO DAYS AFTER LOSING THE PARAMOUNT FIGHT FIGGIE ELIMINATED ITS QUARTERLY SIXCENTSASHARE DIVIDEND RECEIVED A TEMPORARY CASH INFUSION AND NAMED A DIRECTOR AS ITS NEW VICE CHAIRMAN MORGAN STANLEY CANCELED A 185 MILLION JUNKBOND OFFERING FOR SULLIVAN COMMUNICATIONS A PRINTING CONCERN NOVELL IS TALKING WITH SEVERAL COMPUTER MAKERS ABOUT SELLING SOURCE LICENSES TO ITS UNIX PROGRAM MACY IS LIKELY TO SEEK A SHORTERTHANEXPECTED EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A BANKRUPTCY REORGANIZATION PLAN IN AN EFFORT TO AVERT A PUBLIC BATTLE WITH ITS MAJOR CREDITORS THE NUMBER OF BUSINESS FAILURES DECLINED 16 IN DECEMBER FROM A YEAR AGO AND THE VALUE OF RELATED LIABILITIES FELL 70 DUN & BRADSTREET REPORTED BONDS LEHMAN BROTHERS TREASURY INDEX 548093 OFF 4754 COMMODITIES OIL 1423 A BARREL UP 30 CENTS DOW JONES FUTURES INDEX 14716 UP 058 SPOT INDEX 13111 UP 045 DOLLAR 10410 YEN UP 03 17233 MARKS UNCHANGED 9402180043 940218 BUSINESS BRIEF MEDIA VISION TECHNOLOGY INC EARNINGS FOR FOURTH QUARTER JUMPED MORE THAN FOURFOLD MEDIA VISION TECHNOLOGY INC SAID FOURTHQUARTER NET INCOME ROSE MORE THAN FOURFOLD DUE TO STRONG SALES OF THE COMPANY'S SEMICONDUCTORS AND MULTIMEDIA UPGRADE KITS NET INCOME FOR THE QUARTER WAS 85 MILLION OR 53 CENTS A SHARE COMPARED WITH 2 MILLION OR 18 CENTS A SHARE A YEAR EARLIER REVENUE NEARLY TRIPLED TO 95 MILLION FROM 33 MILLION STEVEN J ALLAN MEDIA VISION'S CHIEF FINANCIAL OFFICER SAID THE INCREASE IN PROFIT WAS DRIVEN BY A FIVEFOLD JUMP IN SALES OF THE COMPANY'S SEMICONDUCTORCHIP SETS AND A TRIPLING OF SALES OF MULTIMEDIA COMPUTER UPGRADE KITS THE AREAS MADE UP NEARLY 70 OF MEDIA VISION'S SALES FOR THE YEAR MEDIA VISION BASED IN FREMONT CALIF HAD NET OF 20 MILLION OR 140 A SHARE COMPARED WITH 1 MILLION OR SIX CENTS A SHARE IN 1992 REVENUE ROSE TO 241 MILLION FROM 69 MILLION 9402180042 940218 BUSINESS BRIEF ASHLAND COAL INC FIRM'S FIRSTQUARTER RESULTS TO BE AT BREAKEVEN LEVEL ASHLAND COAL INC SAID SEVERE WEATHER AND THE AFTEREFFECTS FROM LAST YEAR'S MINE WORKERS STRIKE WILL REDUCE FIRSTQUARTER EARNINGS TO ABOUT THE BREAKEVEN LEVEL IN THE 1993 FIRST QUARTER ASHLAND COAL EARNED 15 MILLION OR SIX CENTS A SHARE EXCLUDING ACCOUNTING ADJUSTMENTS REVENUE TOTALED 1382 MILLION THE HUNTINGTON WVA COAL MINING CONCERN SAID DESPITE HIGH COSTS IN JANUARY THE AVERAGE COST PER TON FOR THE YEAR SHOULD APPROXIMATE THE 1992 LEVEL IN LATE NEW YORK STOCK EXCHANGE TRADING ASHLAND COAL WAS QUOTED AT 29125 OFF 375 CENTS 9402180041 940218 FINANCING BUSINESS POPE & TALBOT INC POPE & TALBOT INC PORTLAND ORE SAID IT PLANS TO CALL FOR THE EARLY CONVERSION OF UP TO 15 MILLION OF ITS SUBORDINATED DEBENTURES DUE MARCH 1 2012 THE DEBENTURES WILL BE CONVERTIBLE INTO COMMON STOCK THE FOREST PRODUCTS COMPANY SAID 9402180040 940218 MARKETING BRIEF EW SCRIPPS CO COMPANY TO BUY REMAINING 14 STAKE IN SCRIPPS HOWARD EW SCRIPPS CO CINCINNATI SAID IT OFFERED TO ACQUIRE THE 14 INTEREST IN ITS SCRIPPS HOWARD BROADCASTING CO UNIT THAT IT DOESN'T ALREADY OWN FOR 1247 MILLION IN STOCK UNDER TERMS OF THE PROPOSED AGREEMENT SCRIPPS HOWARD SHAREHOLDERS WOULD RECEIVE THREE EW SCRIPPS CLASS A SHARES FOR EACH SHARE HELD EW SCRIPPS CLASS A SHARES GAINED 625 CENTS TO 2875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SCRIPPS HOWARD FELL 2625 TO 75 A SHARE IN NASDAQ STOCK MARKET TRADING WITH 100 SHARES CHANGING HANDS SCRIPPS HOWARD SAID IT FORMED A COMMITTEE TO STUDY THE OFFER THE OFFER IS SUBJECT TO A DEFINITIVE AGREEMENT AS WELL AS REGULATORY APPROVAL IF THE MERGER IS APPROVED EW SCRIPPS SAID IT WOULD FILE WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE THE SHARES REQUIRED FOR THE TRANSACTION EW SCRIPPS OPERATES NEWSPAPERS A TELEVISION PROGRAMMING COMPANY AND OTHER MEDIA INTERESTS SCRIPPS HOWARD OPERATES NINE TELEVISION STATIONS AND CABLE TELEVISION SYSTEMS 9402180039 940218 CLINTON REVERSES BUSH POLICY ON AIMING COLLEGE SCHOLARSHIPS TOWARD MINORITIES BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION REVERSING A BUSH ADMINISTRATION POLICY SAID COLLEGES AND UNIVERSITIES MAY TARGET SCHOLARSHIPS TO MINORITIES TO PROMOTE CAMPUS DIVERSITY OR MAKE UP FOR PAST DISCRIMINATION THE BUSH ADMINISTRATION HAD PROPOSED SHARPLY LIMITING THE EXTENT TO WHICH RACE CAN BE THE BASIS FOR AWARDING SCHOLARSHIPS SPECIFICALLY IT PROPOSED ALLOWING RACETARGETED SCHOLARSHIPS ONLY IN CASES WHERE THERE ARE FORMAL FINDINGS OF DISCRIMINATION BY A COURT LEGISLATIVE BODY OR THE JUSTICE DEPARTMENT IN ADDITION IT SAID RACE SHOULD ONLY BE ONE OF SEVERAL ELIGIBILITY CRITERIA FOR SCHOLARSHIPS DESIGNED TO PROMOTE DIVERSITY THE NEW CLINTON POLICY ALLOWS SCHOOLS TO ACT ON THEIR OWN PROVIDED THEY HAVE SUBSTANTIAL EVIDENCE OF DISCRIMINATION SAID JUDITH WINSTON GENERAL COUNCIL OF THE EDUCATION DEPARTMENT AND IT ALLOWS COLLEGES TO USE RACE AS THE DECIDING FACTOR IN AWARDING SCHOLARSHIPS DESIGNED TO PROMOTE DIVERSITY PROVIDED THEY PROVE THAT OTHER LESSINTRUSIVE METHODS OF ACHIEVING DIVERSITY WOULD BE INEFFECTIVE CRITICS SAY RACETARGETED SCHOLARSHIPS GIVE MINORITIES AN UNFAIR ADVANTAGE RACETARGETED SCHOLARSHIPS LIKE RACIAL QUOTAS ARE ILLEGAL EXCEPT UNDER VERY LIMITED CIRCUMSTANCES SAID RICHARD KOMER WHO WAS THE EDUCATION DEPARTMENT'S DEPUTY ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE BUSH ADMINISTRATION FOR INSTANCE HE SAID RACETARGETED SCHOLARSHIPS SHOULD BE CONFINED TO COUNTERING RECENT DISCRIMINATION MR KOMER FAULTED THE CLINTON ADMINISTRATION FOR ALLOWING COLLEGES TO TARGET SCHOLARSHIP MONEY TO SPECIFIC MINORITY GROUPS TO ACHIEVE DIVERSITY HE SUGGESTED THAT GETS DANGEROUSLY CLOSE TO ESTABLISHING RACIAL QUOTAS WHICH HE SAID WOULD BE ILLEGAL BECAUSE OF THEIR UNIQUE CIRCUMSTANCES THE 116 HISTORICALLY BLACK COLLEGES MAY PUT UP SOME OF THEIR OWN MONEY TOWARD RACIALLY TARGETED SCHOLARSHIPS IN CONJUNCTION WITH PRIVATE OR OTHER THIRDPARTY DONORS THE EDUCATION DEPARTMENT SAID UNDER THE OLD POLICY THIS WAS PROHIBITED THE GENERAL ACCOUNTING OFFICE REPORTED RECENTLY THAT 3 OF UNDERGRADUATE AND GRADUATE SCHOLARSHIPS USED RACE OR NATIONAL ORIGIN AS AN ELIGIBILITY CRITERION BUT IT FOUND THAT THOSE SCHOLARSHIPS PLAY A VITAL ROLE IN PROVIDING MINORITY STUDENTS ACCESS TO HIGHER EDUCATION 9402180038 940218 INTERNATIONAL BRIEF REICHMANN INTERNATIONAL LP VENTURE WITH EMPRESAS ICA PLANS MEXICAN DEVELOPMENT REICHMANN INTERNATIONAL LP A VENTURE BETWEEN CANADA'S REICHMANN FAMILY AND FINANCIER GEORGE SOROS SAID IT WILL FORM A MEXICAN REALESTATE DEVELOPMENT VENTURE WITH EMPRESAS ICA SA THE VENTURE WILL UNDERTAKE A 30BUILDING PROJECT AT SITES AROUND MEXICO CITY COMPRISING MORE THAN 356 MILLION SQUARE FEET THE VENTURE WILL ALSO DESIGN AND BUILD PROJECTS AT THE SANTA FE OFFICE AND SHOPPING COMPLEX WEST OF MEXICO CITY REICHMANN SAID THE COMPANIES DIDN'T PUT A VALUE ON THE VENTURE 9402180037 940218 BUSINESS BRIEF TRANSAMERICA CORP SAN FRANCISO COMPANY'S NET SURGED 92 IN FOURTH PERIOD TRANSAMERICA CORP SAID ITS FOURTHQUARTER NET INCOME ROSE 92 PACED BY STRONG SHOWINGS IN ITS LIFE INSURANCE AND REALESTATE SERVICES SEGMENTS SAN FRANCISCOBASED TRANSAMERICA REPORTED NET OF 228 MILLION OR 24 CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS OF 119 MILLION OR SIX CENTS A SHARE PERSHARE EARNINGS WERE INCREASED BY A STOCK BUYBACK AND THE DIVERSION OF PREFERRED DIVIDENDS EXCLUDING INVESTMENT GAINS AND LOSSES TRANSAMERICA SAID PROFIT FROM CONTINUING OPERATIONS ROSE 17 TO 1011 MILLION OR 124 A SHARE FROM 865 MILLION OR 102 A SHARE FOR ALL OF 1993 TRANSAMERICA'S NET CLIMBED 55 TO 3774 MILLION OR 451 A SHARE FROM 2432 MILLION OR 283 A SHARE IN 1992 PROFIT FROM CONTINUING OPERATIONS ROSE 26 TO 4252 MILLION OR 512 A SHARE FROM 3378 MILLION OR 405 A SHARE 9402180036 940218 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 BEAR STEARN FINANCE LLC 150 MILLION OF EXCHANGEABLE PREFERRED INCOME CUMULATIVE SHARES PRICED AT PAR TO YIELD 8 ACCORDING TO MCM CORPORATEWATCH THE SHARES WERE PRICED AT 25 EACH THE SHARES WHICH ARE CALLABLE AFTER FIVE YEARS IS DEBT EXCHANGEABLE AT THE ISSUER'S OPTION INTO THE PREFERRED STOCK OF THE PARENT BEAR STEARNS COS WITH THE SAME TERMS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN BANK SYSTEM 422 MILLION OF NONCALLABLE DEBT IN THREE PARTS PRICED BY LEHMAN BROTHERS INC INCLUDING 150 MILLION OF NOTES DUE AUG 28 1995 PRICED AT PAR TO YIELD 422 THE ISSUE WAS PRICED FLAT TO TREASURYS ALSO INCLUDED ARE 105 MILLION OF NOTES DUE FEB 28 1997 PRICED AT A SPREAD OF TWO BASIS POINTS ABOVE TREASURYS AT PAR TO YIELD 484 AND 122 MILLION OF NOTES DUE FEB 25 1999 PRICED AT A SPREAD OF TWO BASIS POINTS ABOVE TREASURYS AT PAR TO YIELD 543 FEDERAL HOME LOAN BANK SYSTEM 250 MILLION OF MULTIPLE STEPUP NOTES DUE MARCH 2 2001 PRICED AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES ONCE A YEAR TO 55 575 65 7 75 THEN 8 THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE FEB 23 2001 PRICED AT PAR TO YIELD 6095 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 39 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FORD MOTOR CREDIT 300 MILLION OF NOTES DUE FEB 15 2006 PRICED AS 65S AT 99971 TO YIELD 6526 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO PENNSYLVANIA POWER & LIGHT CO 300 MILLION OF FIRSTMORTGAGE BONDS PRICED IN TWO PARTS ACCORDING TO MCM CORPORA TEWATCH THE FIRST TRANCHE 150 MILLION FIRSTMORTGAGE BONDS DUE MARCH 1 2006 WAS PRICED AS 655S AT 99753 TO YIELD 658 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 150 MILLION OF FIRSTMORTGAGE BONDS DUE MARCH 1 2024 WAS PRICED AS 73S AT 99517 TO YIELD 734 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC PEPSICO INC 250 MILLION OF NOTES DUE FEB 24 1997 PRICED AS 5S AT 99997 TO YIELD 5001 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SUN HEALTHCARE GROUP INC 75 MILLION OF 6 CONVERTIBLE SUBORDINATED DEBT DUE 2004 ACCORDING TO THE COMPANY THE DEBENTURES CALLABLE AFTER MARCH 1 1997 MATURE MARCH 1 2004 AND ARE CONVERTIBLE INTO SUN COMMON STOCK AT 2184 A SHARE NATWEST SECURITIES CORP IS THE UNDERWRITER WEBCRAFT TECHNOLOGIES INC 90 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 15 2002 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC AMPHENOL CORP 77 MILLION COMMON SHARES PRICED AT 16125 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND SMITH BARNEY SHEARSON INC CAI WIRELESS SYSTEMS INC INITIAL OFFERING OF 34 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY GERARD KLAUER MATTISON & CO INTEGRATED SILICON SYSTEMS INC INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES PRICED AT 15 EACH ACCORDING TO THE COMPANY WESSELS ARNOLD & HENDERSON LP AND NEEDHAM & CO ARE THE MANAGING UNDERWRITERS TRACTOR SUPPLY CO INITIAL OFFERING OF 29 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MASSACHUSETTS BAY TRANSPORTATION AUTHORITY 185 MILLION OF SERIES 1994A REVENUEANTICIPATION NOTES PRICED THROUGH SEVEN UNDERWRITERS THE NOTES DUE MARCH 1 1995 HAVE A MIG2 RATING FROM MOODY'S AND AN SP1 RATING FROM S&P LEHMAN BROTHERS INC WON 50 MILLION OF NOTES PRICED AT 375 TO YIELD 29 MERRILL LYNCH & CO WON 35 MILLION OF NOTES PRICED AT 375 TO YIELD 31 CS FIRST BOSTON INC WON 25 MILLION OF NOTES PRICED AT 375 TO YIELD 3 MORGAN STANLEY & CO WON 25 MILLION OF NOTES PRICED AT 35 TO YIELD 3 GOLDMAN SACHS & CO WON 20 MILLION OF NOTES PRICED AT 375 TO YIELD 3 KIDDER PEABODY & CO INC WON 20 MILLION OF NOTES PRICED AT 375 TO YIELD 3 AND PRUDENTIAL SECURITIES INC WON 10 MILLION OF NOTES PRICED AT 375 TO YIELD 3 NEW YORK STATE DORMITORY AUTHORITY 1344 MILLION OF REVENUE BONDS FOR UPSTATE COMMUNITY COLLEGE PRICED BY A REINOSO & CO GROUP YIELDS RANGE FROM 27 IN JULY TO 57 IN 2021 MOODY'S HAS RATED THE BONDS BAA1 AND S&P HAS ASSIGNED A TRIPLEBMINUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 850 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 199437 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 199448 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 177 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES 199445 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 352 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1149 MILLION OF REMIC SECURITIES BY KIDDER PEABODY & CO THE OFFERING SERIES 199447 IS BACKED BY 55 MILLION PRINCIPALONLY STRIPS FROM STRIPPED MORTGAGEBACKED SECURITIES TRUST 55 422 MILLION OF PRINCIPALONLY STRIPS FROM TRUST 168 33 MILLION OF PRINCIPALONLY STRIPS FROM TRUST 126 AND 34 MILLION OF PRINCIPALONLY STRIPS FROM TRUST 179 FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REMIC SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 199446 IS BACKED BY 80 MILLION OF PRINCIPALONLY STRIPS FROM STRIPPED MORTGAGEBACKED TRUST 251 AND 20 MILLION OF PRINCIPALONLY STRIPS FROM TRUST 237 MBNA AMERICA BANK NA 750 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED AT 9990625 TO FLOAT 17 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO YIELD 36 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS SOLD THROUGH MBNA MASTER CREDIT CARD TRUST 19941 THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC THE CERTIFICATES WERE RATED TRIPLEA BY AND S&P CREDIT ENHANCEMENT CONSISTED OF A 105 CASH COLLATERAL ACCOUNT THE CERTIFICATES HAVE AN AVERAGE LIFE OF 51 YEARS MONTHLY PAYMENTS BEGIN APRIL 15 MBNA AMERICA IS A UNIT OF MBNA CORP GLOBAL PRIVATIZATION FUND INC INITIAL OFFERING OF 745 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO BANQUE NATIONALE DE PARIS FRANCE 200 MILLION OF 625 EUROBONDS DUE DEC 16 1999 AT ISSUE PRICE 10103 VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 9943 TO YIELD 636 MARGIN OF 32 BASIS POINTS OVER COMPARABLE UK GILT FEES 1875 DRESDNER FINANCE BV GERMAN PARENT ONE BILLION MARKS OF 625 EUROBONDS DUE MARCH 11 2004 AT ISSUE PRICE 1019 VIA DRESDNER BANK AG REOFFERED AT 995 TO YIELD 632 A MARGIN OF 43 BASIS POINTS OVER COMPARABLE GERMAN BUND GUARANTOR DRESDNER BANK AG FEES 25 INVERSIONES Y REPRESENTACIONES SA ARGENTINA 50 MILLION OF 8875 EUROBONDS DUE MARCH 3 1999 VIA SMITH BARNEY SHEARSON INC ISSUE AND FIXED REOFFER PRICE 98916 TO YIELD A MARGIN 380 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE INTEREST PAYABLE SEMIANNUALLY JP MORGAN & CO US 250 MILLION CANADIAN DOLLARS OF 6875 SUBORDINATED EUROBONDS DUE MARCH 17 2004 AT ISSUE PRICE 101114 VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 99464 TO YIELD 695 A MARGIN OF 20 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO LONRHO FINANCE PLC UK PARENT 645 MILLION OF 6 CONVERTIBLE BONDS DUE FEB 27 2004 VIA CS FIRST BOSTON CONVERTIBLE INTO ORDINARY SHARES OF LONRHO PLC AT INDICATED PREMIUM 2026 FROM APRIL 14 TO FEB 20 2004 CALLABLE FROM MARCH 13 1997 AT 102 DECLINING BY ONE POINT PER ANNUM IF SHARE PRICE AT LEAST 140 OF CONVERSION PRICE CALLABLE AT PAR FROM MARCH 13 1999 CALLABLE AT ANY TIME IF 85 OF BONDS CONVERTED GUARANTOR LONRHO PLC FEES 25 LESS 025 FOR LEAD MANAGER PAYABLE SEMIANNUALLY NIPPON DENRO ISPAT LTD INDIA 100 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 2001 AT ISSUE PRICE PAR VIA SG WARBURG SECURITIES LTD INDICATED COUPON 3 TO 35 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 10 TO 15 BONDS CALLABLE AT PAR FROM FIFTH ANNIVERSARY IF SHARE PRICE AT LEAST 140 OF CONVERSION PRICE FINAL TERMS FIXED WEEK BEGINNING FEB 28 FEES 25 LESS 025 FOR LEAD MANAGER TOKYU STORE CHAIN CO JAPAN 160 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 10 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0125 COUPON AT PAR VIA NOMURA BANK SWITZERLAND LTD NOTES EXERCISABLE FROM APRIL 5 TO FEB 17 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS FIXED FEB 23 FEES 1625 9402180035 940218 BUSINESS BRIEF CROWNX INC WRITEDOWN OF 481 MILLION TIED TO CROWN LIFE IS SET CROWNX INC SAID IT WILL RECORD A WRITEDOWN OF 65 MILLION CANADIAN DOLLARS US481 MILLION OR C117 A CLASS A SHARE AGAINST ITS 1993 EARNINGS AS A RESULT OF THE DILUTION OF ITS INVESTMENT IN CROWN LIFE INSURANCE CO CROWNX BASED IN MARKHAM ONTARIO SAID ITS STAKE IN CROWN LIFE WILL DROP TO 324 FROM 54 UNDER THE TERMS OF AN AGREEMENT REACHED WITH CROWN LIFE'S OTHER MAJOR SHAREHOLDER HARO FINANCIAL CORP A CLOSELY HELD INVESTMENT CONCERN BASED IN REGINA SASKATCHEWAN HARO'S STAKE IN THE LIFE INSURANCE COMPANY WILL RISE TO 6448 FROM 42 CROWNX SAID PUBLIC SHAREHOLDERS WILL CONTINUE TO OWN THE REMAINDER OF THE SHARES THE TRANSACTIONS ARE SUBJECT TO FINAL AGREEMENTS AND REGULATORY APPROVAL 9402180034 940218 DIVIDEND NEWS VARIAN ASSOCIATES INC VARIAN ASSOCIATES INC SANTA CLARA CALIF SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT AND A 20 INCREASE IN THE COMPANY'S CASH DIVIDEND VARIAN SAID THE BOARD ALSO VOTED TO DOUBLE THE COMPANY'S CURRENT STOCK BUYBACK PROGRAM TO FOUR MILLION SHARES THE STOCK IS BEING PURCHASED ON THE OPEN MARKET THE MAKER OF HIGHTECH PARTS FOR THE MEDICAL COMMUNICATIONS AND OTHER INDUSTRIES SAID IT WILL ISSUE ITS NEW SHARES MARCH 17 TO STOCK OF RECORD MARCH 3 VARIAN CURRENTLY HAS ABOUT 172 MILLION SHARES OUTSTANDING VARIAN SAID IT WILL ALSO INCREASE ITS QUARTERLY CASH DIVIDEND TO SIX CENTS FROM FIVE CENTS PAYABLE ON A POSTSPLIT BASIS MAY 2 TO STOCK OF RECORD APRIL 22 9402180033 940218 MONTGOMERY ASSET LOWERS MUTUAL FUND MINIMUMS NEW YORK SEEKING TO ATTRACT MORE INVESTORS TO ITS MUTUAL FUNDS MONTGOMERY ASSET MANAGEMENT SAID IT CUT ITS INITIAL MINIMUMINVESTMENT REQUIREMENT TO 500 FROM 2000 LITTLE ACORNS CAN GROW INTO OAK TREES SAYS R STEPHEN DOYLE CHAIRMAN OF MONTGOMERY ASSET MANAGMENT THE MONEY MANAGEMENT ARM OF SAN FRANCISCOBASED MONTGOMERY SECURITIES WE'VE BEEN MAKING SO MANY EXCEPTIONS ANYWAY ESPECIALLY WITH KIDS' ACCOUNTS THAT WE DECIDED TO LOWER THE MINIMUM FOR EVERYONE MONTGOMERY FUNDS MONTGOMERY ASSET MANAGEMENT'S MUTUAL FUND BRANCH CURRENTLY HAS NINE FUNDS AND PLANS TO OFFER THREE MORE IN THE NEXT COUPLE MONTHS LAUNCHED IN JUNE 1990 MONTGOMERY ASSET MANAGEMENT NOW MANAGES CLOSE TO 3 BILLION IN TOTAL ASSETS WITH 15 BILLION IN ITS MUTUAL FUNDS 9402180032 940218 INTERNATIONAL BRIEF EUROTUNNEL PLC HOLDERS OF FIRM AND OF TWIN IN FRANCE CLEAR SHARE PLAN SHAREHOLDERS OF EUROTUNNEL PLC AND EUROTUNNEL SA APPROVED A PREVIOUSLY ANNOUNCED PLAN TO ISSUE NEW SHARES TO THE BOMBARDIER INTERNATIONAL UNIT OF BOMBARDIER INC UPON DELIVERY OF 126 TOURIST CARS AND THE FIRST SHUTTLE TRAIN UNDER THE PLAN 25 MILLION NEW SHARES EACH OF EUROTUNNEL PLC LISTED IN LONDON AND PARISLISTED EUROTUNNEL SA WILL BE TRANSFERRED TO BOMBARDIER IF THE TOURIST CARS AND FIRST SHUTTLE ARE DELIVERED TO THE SITE BY NEXT FRIDAY THE SHARES ARE GROUPED INTO UNITS COMPOSED OF ONE SHARE EACH OF EUROTUNNEL PLC AND EUROTUNNEL SA MONTREALBASED BOMBARDIER WOULD BE REQUIRED TO RETAIN ALL THE SHARES UNTIL THE NINTH AND FINAL SHUTTLE IS DELIVERED THAT'S SCHEDULED FOR THE BEGINNING OF 1995 9402180031 940218 BUSINESS BRIEF NEW VALLEY CORP PARENT OF WESTERN UNION AMENDS REORGANIZATION PLAN NEW VALLEY CORP SAID IT FILED AN AMENDED REORGANIZATION PLAN THAT CALLS FOR IT TO MAKE A ONETIME PAYMENT OF 198 MILLION TO FULLY FUND ITS UNDERFUNDED PENSION PLAN'S EXISTING OBLIGATIONS NEW VALLEY OF PARAMUS NJ THE PARENT OF WESTERN UNION FINANCIAL SERVICE INC SAID THE AMENDED PLAN PROPOSES TO FUND THE PENSION AND CREDITOR PAYMENTS THROUGH CASH ON HAND ESCROW FUNDS PROCEEDS FROM THE SALE OF AS MUCH AS 500 MILLION OF DEBT AND AN EQUITY INVESTMENT BY ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP OF 23 MILLION IN EXCHANGE FOR 86 OF THE COMPANY THE COMPANY'S ORIGINAL PLAN FILED IN NOVEMBER PROPOSED FOR THE PENSION LIABILITY TO BE PAID OVER TIME FROM FUTURE OPERATING CASH FLOW A HEARING TO CONSIDER THE AMENDED PLAN IS SET FOR MARCH 18 THREE COMPETING PLANS HAVE BEEN FILED 9402180030 940218 HOLIDAY NOTICE THE WALL STREET JOURNAL WON'T BE PUBLISHED MONDAY FEB 21 IN OBSERVANCE OF PRESIDENTS DAY 9402180029 940218 BUSINESS BRIEF URANIUM RESOURCES INC SENIOR MANAGERS WILL SELL SHARES TO CONCORD AFFILIATES URANIUM RESOURCES INC SAID THAT MEMBERS OF ITS SENIOR MANAGEMENT AGREED TO SELL THEIR SHARES OF STOCK TO AFFILIATES OF CONCORD A CLOSELY HELD DENVER CONGLOMERATE OWNED BY OREN L BENTON THE SHAREHOLDERS HOLD A MAJORITY INTEREST IN DALLASBASED URANIUM RESOURCES THE TWO COMPANIES EARLIER CONTEMPLATED A STRATEGIC PARTNERSHIP BUT THAT AGREEMENT WAS RESTRUCTURED AS A STOCK PURCHASE THE COMPANIES SAID TERMS WEREN'T DISCLOSED THE STOCK PURCHASE IS SUBJECT TO RENEGOTIATION OF URANIUM RESOURCES' BANK CREDIT AGREEMENT WHICH IS EXPECTED TO BE COMPLETED IN 30 DAYS THE COMPANIES SAID CONCORD SAID IT PROVIDED URANIUM RESOURCES WITH FUNDS TO MEET ITS REPAYMENT OBLIGATIONS UNDER THAT DEBT IN DECEMBER 1993 AND INTENDS TO DO SO AGAIN IN MARCH 1994 CONCORD'S ENERGY FUELS DIVISION HAS BEEN THE LARGEST URANIUM MINER IN THE US FOR THE PAST DECADE CONCORD'S NUEXCO COMPANY IS THE LARGEST URANIUM TRADER IN THE WORLD 9402180028 940218 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED FEB 11 ACCOUNTED FOR 73 OR AN AVERAGE 223 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 94 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 461 INVOLVED STOCKINDEX ARBITRAGE UP FROM 375 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 643 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 334 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 23 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF NOMURA SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS MORGAN STANLEY AND BEAR STEARNS EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9402180027 940218 INTERNATIONAL BRIEF RWE AG FISCAL 1STHALF PROFIT ROSE 15 ON CONSOLIDATED RESULTS GERMAN ENERGY MINING AND ENGINEERING GROUP RWE AG REPORTED GROUP NET PROFIT FOR THE FISCAL FIRST HALF INCREASED 15 TO 401 MILLION MARKS 2327 MILLION FROM 395 MILLION MARKS A YEAR EARLIER SALES WERE UP 31 IN THE JULYTHROUGHDECEMBER PERIOD TO 275 BILLION MARKS 1595 BILLION THE COMPANY SAID RWE ALSO SAID IN ITS FIRSTHALF REPORT THAT IT EXPECTS FULLYEAR PROFIT TO BE SLIGHTLY ABOVE FISCAL 1993'S LEVEL OF 881 MILLION MARKS THE ENERGY GROUP'S SALES INCREASE WAS SPARKED BY A FIRSTTIME CONSOLIDATION OF SOME UNITS INTO THE GROUP'S RESULTS RWE SAID IT ALSO NOTED THAT THE RESULTS REFLECT STABILITY IN THE ENERGY AND BUILDING SECTORS AND A CLEAR INCREASE IN THE PETROLEUM AND CHEMICAL SECTORS 9402180026 940218 CORRECTIONS & AMPLIFICATIONS US SURGICAL CORP SAID IT ISN'T IN VIOLATION OF ANY LOAN COVENANT AND ISN'T IN DEFAULT UNDER ANY LOAN AN ARTICLE YESTERDAY INCORRECTLY SAID RESTRUCTURING STEPS AT THE COMPANY HAD LED TO A VIOLATION OF ITS LOAN COVENANTS A LLOYD'S OF LONDON SPOKESMAN AFTER INVESTORS REJECTED A 13 BILLION SETTLEMENT OFFER SAID WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE LLOYD'S HAS OTHER PRIORITIES NOW IN AN ARTICLE TUESDAY THE QUOTE WAS ERRONEOUSLY ATTRIBUTED TO ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS 9402180025 940218 CREDIT MARKETS BOND PRICES PLUNGE AS INVESTORS TURN BEARISH ON FED SURVEY POINTING TO ECONOMIC GROWTH BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR MONTHS THE GLASS HAS BEEN HALF FULL FOR THE BOND MARKET BUT YESTERDAY MANY INVESTORS DECIDED IT WAS HALF EMPTY SENTIMENT IN THE U S BOND MARKETS TURNED DECIDEDLY NEGATIVE YESTERDAY AND INVESTORS HAVE BEGUN TO ASSUME THAT THE BIG PLAYERS ARE NOW SELLING BONDS NOT BUYING THEM FOR MANY BOND SALESMEN ON WALL STREET YESTERDAY WAS A NEW EXPERIENCE DESPITE SHARPLY RISING PRICES EARLY IN THE DAY MANY CLIENTS SEEMED MORE INTERESTED IN SELLING THAN IN BUYING OR EVEN HOLDING THEIR TREASURY SECURITIES RUMORS THAT CERTAIN LARGE WALL STREET FIRMS WERE UNLOADING HUGE AMOUNTS OF TREASURY SECURITIES HELPED PUSH PRICES LOWER YESTERDAY AS DID FEARS THAT THE JAPANESE WOULD SELL US TREASURYS IN RESPONSE TO A POTENTIAL TRADE WAR WITH THE US ASSUMPTIONS THAT THE FEDERAL RESERVE WILL SOON MOVE AGAIN TO RAISE SHORTTERM INTEREST RATES TO EASE INFLATIONARY PRESSURES ALSO CONTRIBUTED TO THE GLOOMY FEELING IN THE MARKET THE CATALYST FOR THE SELLING YESTERDAY WAS A BUSINESSOUTLOOK SURVEY FROM THE PHILADELPHIA FEDERAL RESERVE BOARD WHICH SAID THAT MORE PURCHASING MANAGERS IN THE REGION PAID HIGHER PRICES IN JANUARY THAN HAD PAID HIGHER PRICES IN THE PREVIOUS MONTH THE REPORT CAME AFTER THE BOND MARKET HAD ACTUALLY BEGUN TO RALLY IN RESPONSE TO THE RELEASE OF THE CONSUMER PRICE INDEX AN IMPORTANT MEASURE OF INFLATION THE INDEX CAME IN AS EXPECTED BUT INVESTORS CONCENTRATED ON THE PHILADELPHIA REPORT INSTEAD BY DAY'S END THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 96 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 654 FROM 646 ON WEDNESDAY THAT'S THE HIGHEST YIELD SINCE AUGUST FOR MUCH OF THE PAST YEAR INVESTORS WORRIED LITTLE AS THEY WATCHED THE US ECONOMY BUILD UP STEAM MANY OF THEM CONVINCED THEMSELVES THAT THE ECONOMY WASN'T GROWING FAST ENOUGH TO LEAD TO SHARPLY HIGHER INFLATION SO IN LARGE PART THESE INVESTORS WERE WILLING TO KEEP BETTING ON LOWER BOND YIELDS BOND INVESTORS FEAR INFLATION BECAUSE IT MAKES INVESTMENTS WITH A FIXED RATE OF RETURN UNATTRACTIVE THAT HAS CHANGED THE BULL MARKET IS OVER SAID WILLIAM GROSS A MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT CO OF NEWPORT BEACH CALIF NOW THE REAL QUESTION IS HOW DEEP AND HOW SIGNIFICANT IS THIS INTERLUDE OF RISING RATES HE SAID MR GROSS SAID HE BELIEVES LONGTERM RATES MAY SOON STABILIZE BUT THE MARKET HAS BEEN ANYTHING BUT STABLE IN RECENT WEEKS THE SELLOFF YESTERDAY DID TAKE ON THE CHARACTERISTICS OF OPPORTUNISTIC SELLING SAID MR GROSS INSTITUTIONS SEEM TO BE SELLING ON THE WAY DOWN AS PRICES FALL AS OPPOSED TO BUYING ON THE WAY UP AS PRICES RISE HE SAID TRADING VOLUME WAS VERY HEAVY ACCORDING TO GOVPX INC WHICH TRACKS THE TRADING OF TREASURYS VOLUME REACHED 92 BILLION YESTERDAY THE SIXTHHIGHEST SINCE GOVPX STARTED KEEPING TRACK OF VOLUME IN 1991 GOVPX OWNED BY A GROUP OF PRIMARY DEALERS IN THE TREASURY MARKET ESTIMATED THAT ITS NUMBERS COVER ABOUT 65 OF ALL TRADING VOLUME IN THE TREASURY MARKET THE MARKET HAS DEVELOPED A PSYCHOLOGY OF WAITING FOR THE OTHER SHOE TO DROP SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC INVESTORS ARE WAITING FOR THE FEDERAL RESERVE TO BOOST THE FEDERALFUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY OVERNIGHT FROM 325 TO 35 THE FED RAISED THAT RATE TWO WEEKS AGO FROM 3 TO 325 LIKE MANY ECONOMISTS MR FINE DIDN'T CONSIDER THE PHILADELPHIA REPORT AS IMPORTANT A MEASURE OF INFLATIONARY PRESSURES AS THE CPI REPORT WHICH SHOWED SUBDUED INFLATION IN JANUARY IF THERE WAS A FIRM FEELING IN THE MARKET THAT INFLATION WASN'T GOING TO BE A PROBLEM HE SAID THE PHILADELPHIA FED REPORT WOULDN'T HAVE SHAKEN THE MARKET THE NEGATIVE REACTION WHICH SURPRISED MANY IN THE BOND MARKETS SHOWS THAT INVESTORS ARE GETTING A LITTLE MORE INFLATIONCONSCIOUS HERE SAID MR FINE LONGTERM INTEREST RATES ARE UNLIKELY TO RETURN TO THEIR LEVELS OF LAST OCTOBER SAID MR FINE WHEN THE YIELD OF THE 30YEAR TREASURY BOND DROPPED TO 579 TO GET BACK TO 6 YOU WILL HAVE TO HAVE ONE HELL OF A UTURN IN THE ECONOMY HE SAID THIS ECONOMY WILL HAVE TO GO IN REVERSE AND BY AND LARGE ECONOMIC GROWTH IS CONTINUING HE ADDED THE PHILADELPHIA FED'S BUSINESSOUTLOOK SURVEY SAID 304 OF THE PURCHASING MANAGERS REPORTED PAYING HIGHER PRICES IN JANUARY THAN THE MONTH BEFORE OF THE PURCHASING MANAGERS REPORTING 179 SAID THEY RECEIVED HIGHER PRICES IN JANUARY THAN THE MONTH BEFORE THE PERCENTAGE OF PURCHASING MANAGERS NOTING AN INCREASE IN PRICES PAID IN JANUARY WAS THE HIGHEST PERCENTAGE SEEN SINCE DECEMBER 1990 SAID RAY STONE OF STONE & MCCARTHY A FIRM THAT PROVIDES ECONOMIC ANALYSIS THE PERCENTAGE NOTING AN INCREASE IN PRICES RECEIVED WAS THE HIGHEST SINCE JUNE 1989 MR STONE SAYS WHILE ONLY 304 NOTED INCREASES ANOTHER INDEX IN THE PHILADELPHIA SURVEY NOTED THAT NO MANAGERS SURVEYED REPORTED A DECREASE IN PRICES PAID WHICH IS HIGHLY UNUSUAL ONLY A SMALL PERCENTAGE REPORTED A PRICE DECREASE IN PRICES RECEIVED BUT MR STONE CAUTIONED THE PHILADELPHIA SURVEY IS NOTORIOUSLY MORE ERRATIC THAN OTHER INFLATION NUMBERS SUCH AS THE CPI MY OPINION IS THAT IT MIGHT BE PULLING IN THE RIGHT DIRECTION BUT IT CERTAINLY IS EXAGGERATING THE MAGNITUDE OF ANY IMPENDING PRICE PRESSURES HE SAID NOW THERE IS A LOT MORE OF THE DYNAMICS AND PRICE VOLATILITY IN THE BOND MARKETS THAT YOU WOULD ASSOCIATE WITH A BEAR MARKET SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT CS FIRST BOSTON INC PEOPLE ARE ALL RUSHING THROUGH THE DOOR TRYING TO GET THEIR SELLING DONE IN ONE DAY INSTEAD OF OVER A WEEK SAID MR COSTAS ACCORDING TO MR GROSS INVESTORS IN THE US MARKETS SHOULD KEEP A CLOSE EYE ON THE BREWING TRADE WAR BETWEEN THE US AND JAPAN THERE IS MORE TO THE TRADE ELEMENT THAN MOST INVESTORS ARE GIVING CREDENCE TO HE SAID ONE OF THE PRIMARY WEAPONS THAT THE JAPANESE HAVE IS TO SELL BONDS AND NOTES AND BASICALLY DESTROY CLINTON'S ECONOMIC FOUNDATION EXPLAINED MR GROSS THE JAPANESE CAN SINGLEHANDEDLY DESTROY BILL CLINTON'S ECONOMIC ARCHITECTURE HE SAID AND THAT MIGHT BE ONE OF THE KEY REASONS WHY A SOPHISTICATED INVESTMENT HOUSE OR INVESTOR WOULD BE SELLING US TREASURYS THESE DAYS DEVELOPING COUNTRIES SOLD A RECORD 577 BILLION OF BONDS LAST YEAR MORE THAN DOUBLE THE AMOUNT SOLD THE PREVIOUS YEAR ACCORDING TO THE WORLD BANK THE AMOUNT OF BONDS SOLD BY DEVELOPING NATIONS JUST IN THE LAST QUARTER OF 1993 NEARLY SURPASSED THE WHOLE OF 1992 WITH ISSUES TOTALING 197 BILLION IN THE QUARTER AGAINST 212 BILLION FOR ALL OF THE PREVIOUS YEAR IN ITS LATEST QUARTERLY BULLETIN THE WORLD BANK SAID THAT DESPITE THE SHARP RISE IN BOND ISSUES IN 1993 THE AVERAGE GAP BETWEEN THE YIELDS OF DEVELOPINGNATION BONDS AND US TREASURY SECURITIES WITH COMPARABLE MATURITIES ALSO NARROWED LAST YEAR OVER 1993 THE AVERAGE YIELD GAP OF DOLLARDENOMINATED ISSUES OVER US TREASURYS NARROWED 060 PERCENTAGE POINT TO 280 PERCENTAGE POINTS ACCORDING TO THE WORLD BANK THE NARROWING GAP REFLECTED THE SURGE OF INVESTOR INTEREST IN DEVELOPINGCOUNTRY BONDS THE WORLD BANK SAID WORLD BANK ECONOMIST PUNAM CHUHAN WHO WROTE THE QUARTERLY REPORT'S ITEM ON FINANCIAL FLOWS TO DEVELOPING COUNTRIES STATED THAT THE RECENT SURGE IN PRIVATE CAPITAL FLOWS IS SIGNIFICANT BECAUSE OF THE RETREAT OF VOLUNTARY BANK LENDING TO MOST DEVELOPING COUNTRIES SINCE THE 1980S THE CORPORATE BOND MARKET TOOK A SLIGHT BEATING AS PRICES DROPPED WITH TREASURYS EVEN SO MORE THAN 15 BILLION OF CORPORATE AND AGENCY DEBT WAS SOLD DURING THE SESSION NEW ISSUES WERE SEEN FROM WEBCRAFT TECHNOLOGIES INC PEPSICO INC PENNSYLVANIA POWER & LIGHT CO AND FORD MOTOR CREDIT CORP A UNIT OF FORD MOTOR CO WEAKER PRICES IN THE INVESTMENTGRADE MARKET SPILLED OVER INTO THE JUNK BOND MARKET WHERE PRICES DROPPED BY MORE THAN 050 POINT ACROSS THE BOARD BUT THE BONDS OF SULLIVAN GRAPHICS INC TRADED UP ON NEWS THAT ITS PARENT SULLIVAN COMMUNICATIONS INC SOLD ONE OF ITS UNITS SULLIVAN MARKETING INC A COUPONINSERT COMPANY WAS SOLD TO NEWS AMERICA FSI INC A UNIT OF NEWS CORP THE HUGE MEDIA COMPANY SULLIVAN MARKETING WAS CONSIDERED A WEAK PERFORMER COMPARED WITH THE OTHER COMPANIES OWNED BY SULLIVAN COMMUNICATIONS AND IT DEPRESSED THE VALUE OF SULLIVAN GRAPHICS' BONDS ONE SYNDICATE OFFICIAL SAID THE BONDS NOW BETTER REFLECT THE VALUE OF SULLIVAN GRAPHICS HE SAID SULLIVAN COMMUNICATIONS ALSO PULLED ITS 185 MILLION JUNK BOND OFFERING WHICH WAS TO BE SOLD IN THE PRIVATE PLACEMENT MARKET SOURCES CLOSE TO THE TRANSACTION SAID MORTGAGE SECURITIES PLUNGED LIKE TREASURYS AFTER DEBT PLAYERS DECIDED TO FOCUS KEENLY ON THE PRICE COMPONENTS OF THE FED SURVEY THOUGH THE PHILADELPHIA FED NUMBERS KNOCKED BOTH MARKETS DOWN MORTGAGE SECURITIES FARED A LITTLE BETTER THAN TREASURYS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 SECURITIES FOR MARCH DELIVERY FINISHED 21/32 LOWER AT 98 5/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES BOTH FOR MARCH DELIVERY WERE OFF 20/32 AT 98 10/32 AND 98 5/32 RESPECTIVELY MEANWHILE MBNA CORP'S MBNA AMERICA BANK UNIT SUCCESFULLY SOLD A 750 MILLION FIVEYEAR FLOATINGRATE CREDITCARD ISSUE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC EVEN THOUGH THE DEAL APPEARED TO BE PRICED AT A TIGHT YIELD SPREAD TO TREASURYS MBNA MCCT 19941 CARRIED A COUPON OF THE ONEMONTH LONDON INTERBANK OFFERED RATE PLUS 015 PERCENTAGE POINT OR 35875 IT WAS PRICED AT 99 29/32 TO YIELD A SPREAD OF 017 PERCENTAGE POINT OVER THE ONEMONTH LIBOR OR 36075 THE YIELD FLOATS TO A 12 CAP CS FIRST BOSTON OFFICIALS SAID THE DEAL WAS COMPLETELY SOLD PRICES OF MUNICIPAL BONDS WERE PULLED DOWN IN THE SELLOFF THAT AFFECTED TREASURYS WITH SOME TAXEXEMPT ISSUES ENDING A FULL POINT LOWER OR MORE AMONG ACTIVELY TRADED ISSUES THE REEDY CREEK IMPROVEMENT DISTRICT OF FLORIDA'S 500 BONDS OF 2019 FINISHED A POINT LOWER AT 93 1/4 TO YIELD 543 MUNI SELLING ALSO WAS FUELED BY CONCERNS ABOUT A SERIES OF BIDWANTED LISTS FROM BOND FUNDS TRADERS SAID THE SELLING INTEREST STEMS FROM PORTFOLIO ADJUSTMENTS SOME MUNI SPECIALISTS SAY SEPARATELY LITTLE NEW DEBT WAS OFFERED A MASSACHUSETTS BAY TRANSPORTATION AUTHORITY OFFERING OF 185 MILLION OF SERIES 1994A REVENUEANTICIPATION NOTES WAS WON BY SEVEN LEAD BIDDERS THE NOTES WHICH ARE DUE MARCH 1 1995 HAVE A MIG2 RATING FROM MOODY'S INVESTORS SERVICE INC AND AN SP1 RATING FROM STANDARD & POOR'S CORP ABBY SCHULTZ CONTRIBUTED TO THIS ARTICLE 9402180023 940218 NEW CHINESE PROVERB A TOURIST PREFERS THREE GORGES TO NO GORGES BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL THE WAY THE TOURISM BUREAU IN CHINA'S HUBEI PROVINCE FIGURES IT NOTHING BRINGS IN THE NIKON AND BERMUDASHORTS CROWD LIKE THE PROMISE OF ENVIRONMENTAL DEGRADATION IN THIS CASE THE WORLD'S LARGEST HYDROELECTRIC PROJECT WHEN PREMIER LI PENG LAST YEAR GAVE FINAL APPROVAL FOR CONSTRUCTION OF THE THREE GORGES DAM WHICH WILL ALL BUT COMPLETELY SUBMERGE THE FABLED THREE GORGES ALONG THE YANGTZE RIVER TOURISM PICKED UP NICELY DEMAND IS SO OVERHEATED THAT HUBEI RECENTLY HAS STRUGGLED TO KEEP UP SAYS TOURISM BUREAU MARKETING DIRECTOR CAI WHO DECLINES TO PROVIDE HIS FULL NAME DURING A TELEPHONE INTERVIEW MR CAI SAYS THAT 260000 PEOPLE HOPPED ON BOATS TO PASS THROUGH THE TOWERING PEAKS OF THE THREE GORGES IN 1993 STRAINING LOCAL HOTEL AND TRANSPORT CAPACITY THAT'S UP FROM 235000 VISITORS IN 1992 AS THE PROPOSAL FOR THE DAM PROJECT WOUND ITS WAY THROUGH COMMITTEES OF THE NATIONAL PEOPLE'S CONGRESS AND 190000 IN 1991 WHEN IT SEEMED AS THOUGH MOTHER NATURE'S CANYONS MIGHT ENTERTAIN TOURISTS INDEFINITELY FROM MR CAI'S VANTAGE POINT THERE'S NO NEED TO RUSH HUBEI WILL STILL HAVE PLENTY TO OFFER FOREIGN GUESTS WELL INTO THE 21ST CENTURY HE SAYS IT'S JUST A BUNCH OF RUMORS SPREAD BY FOREIGN NEWSPAPERS THAT THE THREE GORGES WILL BE DESTROYED MR CAI SAYS HE ADDS A CLARIFICATION ONLY PART WILL BE DESTROYED OUR GOVERNMENT IS EXTREMELY AWARE OF THE NEED TO PROTECT CHINA'S NATIONAL BEAUTY BESIDES MR CAI SUBMITS THE DAM WILL BE ONE OF THE BEST SCENIC SPOTS IN CHINA LIKE THE GREAT WALL AND WHAT'S MORE HE CONTINUES MANY PEOPLE WILL COME FROM ALL OVER THE WORLD TO VIEW SUCH AN ACHIEVEMENT IN THE MEANTIME CHINA IS RELOCATING AS MANY AS 13 MILLION PEOPLE FROM THE LAND THAT WILL BE INUNDATED BY THE PROJECT HUBEI PROVINCE IS PUBLISHING A SPECIAL TRIBUTE TO THE THREE GORGES VIA ITS HONG KONG ADVERTISING AGENCY NEXT MONTH IT HAS ALSO INCREASED THE NUMBER OF FIRSTCLASS TOUR SLOTS TO ATTRACT MORE FOREIGNERS WHO ALREADY MAKE UP THE BULK OF THE VISITORS WE'VE GOT ABOUT 15 YEARS UNTIL THE DAM IS COMPLETE MR CAI CONCLUDES SO WE HOPE MANY MORE PEOPLE WILL COME TO SEE 9402180022 940218 FAA CLEARS CIVILIAN AIRLINES TO USE MILITARY SATELLITE SIGNALS IN NAVIGATION BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION AUTHORIZED AIRLINES TO START USING MILITARY SATELLITE SIGNALS FOR NAVIGATION BUT SEVERAL OBSTACLES COULD PREVENT QUICK USE OF THE TECHNOLOGY THE ACTION FOLLOWS RECENT ASSURANCES BY THE DEFENSE DEPARTMENT THAT THE MILITARY WON'T TURN OFF OR GREATLY DEGRADE THE SATELLITE SIGNALS WITHOUT TWO DAYS' NOTICE THE PRESIDENT STILL COULD TURN OFF THE SYSTEM WITHOUT WARNING IN A NATIONAL EMERGENCY THOUGH THE MILITARY'S COLLECTION OF 24 ORBITING SATELLITES KNOWN AS THE GLOBAL POSITIONING SYSTEM CAN PINPOINT AN OBJECT'S POSITION WITHIN A FEW FEET AIRLINES HAVE SAID USING GPS COULD SAVE THEM HUNDREDS OF MILLIONS OF DOLLARS BY ALLOWING THEM TO FLY MORE EFFICIENT ROUTES INDEED FAA OFFICIALS MADE THEIR STRONGEST PREDICTIONS YET THAT GPS EVENTUALLY WILL BE ABLE TO OPERATE WITHOUT A BACKUP SYSTEM AND WILL REPLACE GROUNDBASED DEVICES USED TO LOCATE AIRPLANES IN FLIGHT AND GUIDE THEM ONTO RUNWAYS I SEE NO REASON WHY GPS WILL NOT BECOME THE ONLY NAVIGATION SYSTEM FAA ADMINISTRATOR DAVID HINSON SAID FOR NOW THOUGH THE FAA WON'T LET AIRLINES USE GPS DEVICES WITHOUT OTHER NAVIGATION EQUIPMENT THE AGENCY THIS WEEK APPROVED USE OF AN ONBOARD SATELLITE RECEIVER MADE BY CLOSELY HELD GARMIN INTERNATIONAL INC OF LENEXA KAN THE DEVICE ALSO INCLUDES A DATA CHIP THAT REPLACES STACKS OF MANUALS SHOWING PILOTS HOW TO LAND AT VARIOUS AIRPORTS OTHER COMPANIES DEVELOPING GPS TECHNOLOGY INCLUDE TRIMBLE NAVIGATION OF SUNNYVALE CALIF AND HONEYWELL INC OF MINNEAPOLIS CONTINENTAL AIRLINES HAS BEEN USING A HONEYWELL GPS SYSTEM FOR SEVERAL MONTHS TO MAKE POORWEATHER LANDINGS IN ASPEN COLO UNDER A SPECIAL TESTING PROGRAM ROGER FLEMING WHO TRACKS TECHNOLOGICAL ISSUES FOR THE AIRLINE INDUSTRY'S AIR TRANSPORT ASSOCIATION SAID AIRLINES MAY START MAKING MAJOR COMMITMENTS TO GPS WITHIN SIX MONTHS BUT MR FLEMING SAID THE AIRLINES FIRST WILL SEEK MORE INFORMATION FROM THE FAA ON THE ADVANTAGES OF USING THE GPS INCLUDING HOW CLOSE TO ONE ANOTHER AIRPLANES USING IT WILL BE ABLE TO FLY FAA OFFICIALS SAID THEY STILL ARE STUDYING HOW TO CHANGE AIRTRAFFICCONTROL PROCEDURES FOR GPSEQUIPPED PLANES IF THE SYSTEM ENABLES AIRPLANES TO FLY CLOSER TOGETHER IT COULD REDUCE FLIGHT DELAYS ANOTHER TOUGH ISSUE TO RESOLVE BEFORE GPS CAN BECOME WIDELY USED IN AVIATION IS HOW TO COMPENSATE FOR INACCURACY THE MILITARY DELIBERATELY ADDS TO CIVILIAN GPS SIGNALS THE DEFENSE DEPARTMENT GUARANTEES ACCURACY TO WITHIN 100 METERS 330 FEET CLOSE ENOUGH FOR AIRTRAFFIC CONTROLLERS TO TRACK A PLANE IN FLIGHT BUT NOT ACCURATE ENOUGH FOR PILOTS TO LAND IN BAD WEATHER THE FAA IS STUDYING THE POSSIBILITY OF SENDING CORRECTING SIGNALS BY SATELLITE BUT THAT COULD MEET OPPOSITION FROM THE DEFENSE DEPARTMENT SOME MILITARY EXPERTS HAVE WARNED THAT OTHER COUNTRIES INCLUDING NORTH KOREA AND IRAQ ARE DEVELOPING MISSILES THAT CAN HOME IN ON TARGETS USING THE US MILITARY'S SATELLITE SIGNALS FAA OFFICIALS PLAYED DOWN THAT RISK YESTERDAY ALONG WITH THE DANGER THAT HOSTILE FORCES WOULD JAM THE GPS SIGNALS TO DISRUPT AVIATION IT'S THEORETICALLY POSSIBLE SAID ANTHONY BRODERICK THE AGENCY'S ASSOCIATE ADMINISTRATOR FOR REGULATION AND CERTIFICATION BUT HE SAID PILOTS WILL KNOW IF THEIR SYSTEMS ARE GETTING ADULTERATED SIGNALS IT'S NOT A SAFETY HAZARD IF IT HAPPENS IT'S AN ECONOMIC CONCERN HE SAID ANOTHER OPTION FOR CORRECTING CIVILIAN GPS SIGNALS WOULD BE TO USE RADIO TOWERS TO BEAM CORRECTING SIGNALS A SHORT DISTANCE BUT THAT WOULD BE MORE EXPENSIVE FOR AIRPORTS ALSO UNCLEAR IS WHAT THE FAA WILL DO WITH EXISTING MICROWAVELANDING SYSTEMS UNTIL GPS CAME ALONG MICROWAVE SYSTEMS WERE CONSIDERED STATE OF THE ART THE FAA ALREADY HAS SPENT HUNDREDS OF MILLIONS OF DOLLARS BUILDING THEM THE AGENCY SAID IT IS DECREASING ITS SPENDING ON MICROWAVE BUT CAN'T ABANDON THE TECHNOLOGY UNTIL GPS IS PROVEN ADEQUATE FOR LANDINGS THAT OCCUR IN LOW VISIBILITY OR REQUIRE STEEP ANGLES OF DESCENT EUROPEAN COUNTRIES HAVE FAVORED MICROWAVE BECAUSE THEIR HOME AIRPORTS ARE OFTEN FOGGED IN OR NEAR MOUNTAINS AND REQUIRE TRICKY CURVED APPROACHES US OFFICIALS SAY GPS WILL ALLOW SUCH LANDINGS TOO BUT THE EUROPEANS ARE LOATHE TO RELY UPON A SYSTEM THAT THE US COULD SHUT DOWN AT ANY TIME PERSUADING OTHER COUNTRIES TO ADOPT GPS IS IMPORTANT BECAUSE AIRLINES FLYING ABROAD DON'T WANT TO HAVE TO PURCHASE SEVERAL DIFFERENT TYPES OF AVIONIC EQUIPMENT SUSAN CAREY IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9402180021 940218 BUSINESS BRIEF CS FIRST BOSTON INC NET CLIMBED 87 LAST YEAR TO A RECORD 328 MILLION CS FIRST BOSTON INC NEW YORK SAID NET INCOME SOARED 87 LAST YEAR TO A RECORD 328 MILLION THE BROKERAGE FIRM REPORTED THAT ITS EQUITY CAPITALIZATION OR BOOK VALUE ROSE 23 TO 132 BILLION FROM 107 BILLION AND THAT LONGTERM CAPITALIZATION GREW 54 TO 465 BILLION FROM 302 BILLION THE UNIT OF CS HOLDING DOESN'T REPORT QUARTERLY RESULTS OR GIVE A DETAILED BREAKDOWN OF HOW ITS VARIOUS BUSINESSES PERFORMED THE BIGGEST CONTRIBUTOR TO PROFIT WAS THE TRADING AND SALES OF FIXEDINCOME AND DERIVATIVE SECURITIES THE COMPANY ALSO REPORTED STRONG RESULTS FROM UNDERWRITING NEW DEBT AND EQUITY SECURITIES 9402180020 940218 TECHNOLOGY IBM DROPS CLONEKILLING' PCS IN EUROPE BY LAURIE HAYS AND RICHARD L HUDSON STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP PULLED THE PLUG ON ITS FIRST EXPERIMENT IN CLONEKILLING ANNOUNCING THAT IT'S DISCONTINUING ITS LOWESTPRICE PERSONAL COMPUTER LINE IN EUROPE CALLED AMBRA SEPARATELY THE ARMONK NYBASED COMPUTER GIANT TOLD EMPLOYEES AT THREE US MAINFRAME PLANTS YESTERDAY THAT AT LEAST 1200 MORE WORKERS ALMOST 20 OF THE WORK FORCE REMAINING IN THAT AILING BUSINESS WOULD BE LAID OFF AS PART OF PREVIOUSLY ANNOUNCED CUTBACK PLANS IN ADDITION IBM HANDED OUT A TOTAL OF 700 MORE PINK SLIPS THROUGHOUT SEVERAL OTHER DIVISIONS IBM STRESSED IT WILL CONTINUE SELLING AMBRA IN THE US AND CANADA WHERE ITS DIRECTMARKETING STRATEGY IS MORE SUCCESSFUL AND SOME BUYERS WANT A CHEAPLY PRICED COMPUTER AND DON'T CARE ABOUT BRAND NAMES EVEN SO ANALYSTS SAY AMBRA SALES ACCOUNT FOR SIGNIFICANTLY LESS THAN 5 OF IBM'S TOTAL PC SALES IN THE US IN EUROPE AMBRA WAS APPARENTLY STARTING TO CLASH WITH IBM'S OTHER PC BRANDS CONFUSING BUYERS ANALYSTS SAID IT WAS ALSO NEVER MUCH OF A HIT WITH 140000 SOLD SINCE THE JUNE 1992 LAUNCH A PUNY NUMBER BY IBM STANDARDS ACCORDING TO IBM WHILE PC SALES IN THE US ARE RECOVERING WITH THE ECONOMY IN EUROPE RECESSION IS STILL BATTERING PARTS OF THE PC MARKET ESPECIALLY THE NONAME PC CLONE SEGMENT IN WHICH AMBRA PLAYED IN ADDITION PRICES FOR IBM'S OWNBRAND PCS SUCH AS VALUEPOINT HAVE FALLEN SO FAST THAT THERE ISN'T ANY LONGER MUCH DIFFERENCE BETWEEN THEM AND AMBRA THERE'S ALSO LITTLE DIFFERENCE IN COST TO IBM WHILE EACH AMBRA ONCE COST IBM ABOUT 40 LESS THAN ITS OTHER PCS NOW THE SAVINGS IS LESS THAN 10 WILLIAM E MCCRACKEN HEAD OF IBM'S PC BUSINESS IN EUROPE AND ASIA SAID THAT WITH SO LITTLE DIFFERENCE ON BALANCE I WOULD PREFER THE CONSUMER HAVE AN IBM LOGO ON THE MACHINE INDUSTRY ANALYSTS CONCURRED ADDING THAT THERE WAS LITTLE POINT IN IBM CONTINUING TO FOOT THE BILL FOR A SEPARATE AMBRA ORGANIZATION IF IT WASN'T GETTING EXTRA PROFIT IBM SAID IT WILL LAY OFF ABOUT 64 EMPLOYEES THAT MANAGED THE AMBRA BRAND IN EUROPE IN THE US THE OTHER ANNOUNCED LAYOFFS WILL COME FROM THE ENDICOTT NY OFFICE OF IBM'S MICROELECTRONICS DIVISION FROM THE AUSTIN TEXAS RS/6000 WORKSTATION UNIT AND FROM THE ENDICOTT AND HUDSON VALLEY NY OFFICES OF ISSC THE SERVICES AND CONSULTING UNIT SO FAR MAINFRAME WORKERS AND OTHERS BASED MAINLY IN THE HUDSON VALLEY HAVE BORNE THE BRUNT OF IBM'S MASSIVE SCALINGBACK EFFORTS THAT HAVE REDUCED THE SIZE OF THE COMPANY TO 256000 FROM ITS PEAK OF 406000 IN 1985 IBM SAID THE MAJORITY OF THE 35000 LAYOFFS SCHEDULED FOR THIS YEAR WILL COME PRIMARILY FROM EUROPEAN OPERATIONS WHERE ALREADY 10000 LAYOFFS HAVE BEEN ANNOUNCED 9402180019 940218 WHO'S NEWS EMBRACE SYSTEMS CORP EMBRACE SYSTEMS CORP DONALD W FREEMAN UNEXPECTEDLY RESIGNED YESTERDAY AFTERNOON AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR FREEMAN 32 YEARS OLD WHO HELD THE TITLE OF CHAIRMAN ASSUMED THE CHIEF EXECUTIVE'S DUTIES WEDNESDAY AFTER THE HOLLAND MICH MAKER OF RECYCLED POLYESTER PRODUCTS DISMISSED CEO CURTIS APPEL AND ITS VICE PRESIDENT OF INVESTOR RELATIONS JOEL RAMEY 9402180018 940204 GUNS AND BUTTER KHASHOGGI IS BACK ANGLING FOR A PROFIT FROM MIDEAST PEACE SAUDI ARMS DEALER TEAMS UP WITH AN ISRAELI PARTNER PUSHING INDUSTRIAL PLANS COVERING GAZA'S WATERFRONT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL SAVYON ISRAEL WHENEVER YAACOV NIMRODI STARTS TALKING ABOUT HIS LIFE'S ADVENTURES HIS BOYISH FACE LIGHTS UP SOON THE 67YEAROLD ISRAELI SPYTURNEDBUSINESSMAN IS BOUNDING ACROSS HIS STUDY TO THE MAHOGANY BOOKSHELVES PULLING DOWN OLD PHOTO ALBUMS HERE'S ADNAN AND ME IN ITALY DURING MY DAUGHTER'S HONEYMOON HE SAYS DISPLAYING A SNAPSHOT OF THE NIMRODI CLAN DINING LAST FALL WITH ADNAN KHASHOGGI THE SAUDI ARABIAN FINANCIER MR NIMRODI SMILES ADNAN IS A GREAT MAN HE SAYS HE LOVES PEACE HE LOVES ISRAEL ADNAN KHASHOGGI AND YAACOV NIMRODI THE ARMSDEALING DUO WHO HELPED BRING THE WORLD THE IRANCONTRA FIASCO ARE BACK POOLING THEIR CHUTZPAH AGAIN FOR A NEW ERA IN THE MIDEAST THIS TIME THE GUNRUNNERS WHO HAVE TRAVELED THE WORLD TARGETING A BUCK HAVE SWORN OFF THE BUSINESS OF DEATH INSTEAD THEY ARE PLOWING THEIR MONEY INTO PEACE MESSRS KHASHOGGI AND NIMRODI ARE ANGLING TO BECOME THE LEADING INDUSTRIALISTS IN THE GAZA STRIP AFTER ISRAEL'S ANTICIPATED WITHDRAWAL LATER THIS YEAR THEIR PLANS COVER THE WATERFRONT IN THE WORKS ARE A TELECOMMUNICATIONS SYSTEM ELECTRICPOWER GENERATOR DESALINIZATION PLANT PIPE FACTORY A MUSLIMPILGRIMAGE COMPANY INVESTMENT BANK RAILROAD EVEN AN AIRLINE IN ALL MR NIMRODI SAYS THE INVESTMENTS COULD REACH 500 MILLION THE COMRADESINARMS AREN'T EQUAL PARTNERS IN EVERY PLANNED VENTURE SOME OF THE PROJECTS ARE TAKING SHAPE ABOARD THE PERIPATETIC MR KHASHOGGI'S DC9 JET WHILE OTHERS ARE EVOLVING HERE IN MR NIMRODI'S GATSBYESQUE MANSION NEAR TEL AVIV BUT THE TWO ADVENTURERS ARE WORKING WITH EACH OTHER AND WITH THE WORLD BANK TO FORM SEVERAL LARGE INDUSTRIAL COMPANIES THAT WOULD BE OWNED BY ISRAELI PALESTINIAN AND OTHER ARAB INVESTORS THIS ISN'T CHARITY WE'RE FULLY PROFITORIENTED THE 58YEAROLD MR KHASHOGGI SAYS IN HIS PARIS TOWNHOUSE WITH HIS US BANKRUPTCY PROBLEMS BEHIND HIM MR KHASHOGGI SAYS HE IS FOCUSING ON RUSSIA IRAN AND THE MIDEAST IN THE PAST TWO YEARS HE SAYS HE HAS MADE NEARLY 3 MILLION ON THE TEL AVIV STOCK EXCHANGE IF WE CAN HELP THE PALESTINIANS TODAY HE SAYS WE'LL PROFIT LATER ON MR KHASHOGGI SAYS HE HAS BEEN SECRETLY SOWING SEEDS IN ISRAEL FOR YEARS AS FAR BACK AS 1967 THE CONFIDANT OF SAUDI KINGS OPENED CLANDESTINE LINKS WITH WESTERN JEWS MOSSAD AGENTS AND ISRAELI POLITICIANS IN AN EFFORT TO BRIDGE THE ARABISRAELI DIVIDE THE CONTACTS WERE A RISKY BREACH OF THE ARAB BOYCOTT OF ISRAEL BUT NOW THAT PEACE SEEMS AT HAND MR KHASHOGGI IS EMERGING FROM THE SHADOWS MY ROLE HAS ALWAYS BEEN A SOFT ONE HE SAYS I WAS JUST OPENING DOORS THE KHASHOGGI VISION IS SIMPLE FORGE PEACE THROUGH COMMERCE ADNAN HAS ALWAYS HAD THIS NOTION OF MARRYING THE ENERGY AND BUSINESS ACUMEN OF THE ISRAELI WITH THE CAPITAL OF THE ARAB WORLD SAYS KENNETH BIALKIN THE FINANCIER'S LONGTIME US LAWYER AND A PARTNER IN THE NEW YORK FIRM OF SKADDEN ARPS SLATE MEAGHER & FLOM AS A FORMER CHAIRMAN OF THE CONFERENCE OF PRESIDENTS OF MAJOR AMERICAN JEWISH ORGANIZATIONS MR BIALKIN HAS INTRODUCED MR KHASHOGGI TO MANY POWERFUL ISRAELIS OVER THE YEARS HE HAS ALWAYS SAID IN A JOCULAR WAY THAT IF WE CAN'T MAKE PEACE PERHAPS WE CAN MAKE MONEY MR BIALKIN SAYS THAT IS NAIVE SAYS NASSER NASHASHIBI SCION OF ONE OF JERUSALEM'S OLDEST PALESTINIAN FAMILIES AND A PAL OF THE SAUDI I KNOW MR KHASHOGGI'S CONCEPT OF PEACE IS THAT BUSINESS HAS NO NATIONALITY MR NASHASHIBI SAYS BUT HE ISN'T MATURE POLITICALLY IF HE ACCEPTS ANY ADVICE FROM ME IT'S TO REMEMBER HE'S A MUSLIM AND AN ARAB DON'T RUSH INTO BUSINESS AND LOSE FRIENDS TO WIN ENEMIES THERE ARE ISRAELIS WHO WOULD GIVE YAACOV NIMRODI THE SAME ADVICE BORN IN BAGHDAD AND RAISED IN JERUSALEM MR NIMRODI BECAME ONE OF THE YOUNG JEWISH STATE'S MOST GIFTED SPYMASTERS IN INTELLIGENCE CIRCLES HE IS LEGENDARY FOR HIS MASTERY OF THE LANGUAGE AND MANNERISMS OF ARABS AND PERSIANS SKILLS HE USED TO RECRUIT SOME OF ISRAEL'S BEST SPIES IN THE MID1950S MR NIMRODI WAS SENT TO TEHRAN AS ISRAEL'S SECRET MILITARY ATTACHE TO IRAN THOUGH ISRAEL AND IRAN HAD NO FORMAL DIPLOMATIC TIES THE YOUNG COLONEL REMAINED IN TEHRAN FOR 24 YEARS THE FIRST 14 FOR ISRAEL THE LAST 10 FOR HIMSELF HE BUILT THE SHAH'S INTELLIGENCE AGENCY WHILE EARNING HUGE COMMISSIONS ON SOME 250 MILLION A YEAR IN ARMS SALES TO IRAN THAT IS HOW HE GOT TO KNOW MR KHASHOGGI WHO AMASSED AND LATER SPENT ONE OF THE WORLD'S BIGGEST FORTUNES BY BROKERING ARMS TO SAUDI ARABIA THEY MET IN PARIS IN 1975 THE RENDEZVOUS WAS ARRANGED BY THE LATE HERMAN HANK GREENSPUN PUBLISHER OF THE LAS VEGAS SUN NEWSPAPER AND A HERO IN ISRAEL FOR SMUGGLING GUNS TO THE JEWISH STATE IN ITS WAR OF INDEPENDENCE IN 1948 MR GREENSPUN KNEW MR KHASHOGGI THROUGH EUGENE WARNER ANOTHER JEWISH ACTIVIST IN LAS VEGAS AND AN ADVISER TO THE SAUDI TYCOON MR WARNER WHO LIVES AT THE SANDS HOTEL & CASINO IN LAS VEGAS DIDN'T RETURN PHONE CALLS FOR THIS ARTICLE BUT MR KHASHOGGI SAYS HE MET MR WARNER IN 1958 ON A VISIT TO NEVADA AS A GUEST OF HOWARD HUGHES HE DESCRIBES MR WARNER AS MY LAS VEGAS REALESTATE AGENT ASSOCIATES OF BOTH MEN SAY MR WARNER TRAVELED WIDELY WITH MR KHASHOGGI FOR DECADES INCLUDING MANY TRIPS TO SAUDI ARABIA WHERE JEWS ARE LEGALLY BARRED SAUDI ARABIA ALSO FORBIDS ITS CITIZENS TO DO BUSINESS WITH ISRAEL WITH MR WARNER THE SAUDI MET OTHER PROMINENT JEWS AND ISRAELIS ALL THESE JEWISH FRIENDS OF MINE ENDORSED ME TO THE ISRAELIS MR KHASHOGGI EXPLAINS SO THEY WOULDN'T FEAR ME AT THEIR 1975 INTRODUCTION MESSRS KHASHOGGI AND NIMRODI WERE JOINED BY ADOLPH AL SCHWIMMER THE ISRAELIAMERICAN FOUNDER OF ISRAEL AIRCRAFT INDUSTRIES THE COUNTRY'S BIGGEST DEFENSE CONTRACTOR A DECADE LATER MR SCHWIMMER WOULD PARTICIPATE WITH THEM IN THE IRANCONTRA AFFAIR AT THE PARIS MEETING THEY DISCUSSED WAYS OF OPENING LINKS BETWEEN ISRAEL AND SAUDI ARABIA AND MR KHASHOGGI WHO WAS CLOSE TO ANWAR ALSADAT CONVEYED THE EGYPTIAN PRESIDENT'S READINESS FOR PEACE WITH ISRAEL MR SCHWIMMER DECLINES TO COMMENT ACCORDING TO ARABS AND ISRAELIS WHO KNOW BOTH MEN MESSRS KHASHOGGI AND NIMRODI ARRANGED ARMS TRANSACTIONS LONG BEFORE THE FIRST IRANCONTRA DEAL IN 1985 BOTH OF THEM HOWEVER NOW DENY THIS THEY DABBLED IN DIPLOMACY AS EGYPT AND ISRAEL WERE NEGOTIATING PEACE IN THE LATE 1970S MR KHASHOGGI FLOATED A PROPOSAL BY KING FAHD THEN THE SAUDI CROWN PRINCE FOR PEACE WITH ISRAEL IN EXCHANGE FOR SAUDI CONTROL OF THE MUSLIM HOLY SITES IN JERUSALEM AS AN ADDED INCENTIVE SAYS MR NIMRODI THE SAUDIS DANGLED SOME 100 BILLION OF INVESTMENT CAPITAL FOR THE REGION TO UNDERWRITE DEVELOPMENT MR NIMRODI TOOK THE OFFER TO ISRAELI PRIME MINISTER MENACHEM BEGIN WHO DISCUSSED IT WITH MR KHASHOGGI IN NEW YORK MR KHASHOGGI RECALLS THAT MR BEGIN WHO DIED IN 1992 TOLD ME THAT BEFORE WE COULD TALK ABOUT JERUSALEM WE NEEDED TO MAKE TOTAL PEACE I SAID SIR PART OF TOTAL PEACE IS TO FLY THE SAUDI FLAG OVER THE MOSQUES' HE DIDN'T BUY IT HE LECTURED ME FOR 2 1/2 HOURS ON THE HISTORY OF THE JEWS AND SAID JERUSALEM WASN'T FOR SALE THE PLOTS THICKENED ACCORDING TO MR NIMRODI IN 1981 AFTER MANY FORTUNES WERE WIPED OUT IN THE IRANIAN REVOLUTION MESSRS KHASHOGGI NIMRODI AND SCHWIMMER DECIDED TO OVERTHROW AYATOLLAH RUHOLLAH KHOMEINI IN MOROCCO MESSRS NIMRODI AND KHASHOGGI SAY THEY RECRUITED THE LATE SHAH'S SON PRINCE REZA PAHLAVI TO LEAD THE EFFORT THE MERCENARIES WOULD BE FUNDED BY RIYADH ARMED BY ISRAEL AND TRAINED IN SUDAN ACCORDING TO MR NIMRODI THERE FOLLOWED A GATHERING AT MR KHASHOGGI'S SAFARI RANCH IN SOUTHERN KENYA IN MAY 1982 ALONG WITH MESSRS NIMRODI AND SCHWIMMER CAME ARIEL SHARON THEN ISRAELI DEFENSE MINISTER AND DAVID KIMCHE THEN DIRECTOR GENERAL OF ISRAEL'S FOREIGN MINISTRY AND LATER A KEY ISRAELI REPRESENTATIVE IN THE IRANCONTRA AFFAIR MR KHASHOGGI SAYS HE HAD KNOWN MR KIMCHE FROM THE ISRAELI'S DAYS AS A MOSSAD AGENT IN PARIS IN THE 1960S MR KHASHOGGI BROUGHT ALONG SUDANESE PRESIDENT GAFAAR NUMEIRI WHO HAS SINCE BEEN DEPOSED ACCORDING TO MR NIMRODI EVERYTHING WAS SET MR SHARON AGREED TO PROVIDE SURPLUS ISRAELI WEAPONRY FOR AS MUCH AS 1 BILLION BEING OFFERED BY SAUDI ARABIA THE SUDANESE PRESIDENT WAS HAPPY TO HOST THE GUERRILLAS IN EXCHANGE FOR CASH AND ISRAELI HELP IN CONTAINING LIBYAN LEADER MOAMMAR GADHAFI THE CENTRAL INTELLIGENCE AGENCY WHICH WAS KEPT ABREAST OF THE PLAN DIDN'T INTERFERE MR NIMRODI SAYS THE CIA DECLINES TO COMMENT BUT THE MOSSAD INTELLIGENCE SERVICE DESPITE DEFENSE MINISTER SHARON'S INVOLVEMENT ULTIMATELY KILLED THE SCHEME THE MOSSAD HAD CONCLUDED IN THIS AND OTHER CASES THAT IT WAS NOT A GOOD IDEA TO TRUST ARABS EXPLAIN AUTHORS DAN RAVIV AND YOSSI MELMAN IN THEIR 1990 BOOK EVERY SPY A PRINCE YITZHAK HOFI THE MOSSAD'S CHIEF AT THE TIME RESENTED THE ENCROACHMENT ON HIS TURF BY MESSRS KHASHOGGI AND NIMRODI AND SENT WORD TO THE BABY SHAH AS THE PRINCE WAS KNOWN NOT TO WORK WITH THEM THE AUTHORS WRITE THE KENYA MEETING PROVED INSTRUMENTAL HOWEVER IN ISRAEL'S EVACUATION OF THOUSANDS OF FAMINESTRICKEN JEWS FROM ETHIOPIA THANKS TO MR SHARON'S REQUEST TO MR NUMEIRI MANY JEWS WERE AIRLIFTED TO ISRAEL FROM SUDAN'S CAPITAL KHARTOUM MR SHARON AND MR KIMCHE WERE TRAVELING AND COULDN'T BE REACHED FOR COMMENT IN 1984 WHEN WORD BROKE ABOUT THE RESCUE OPERATION YASSER ARAFAT LEADER OF THE PALESTINE LIBERATION ORGANIZATION WAS ANGRY AT MR KHASHOGGI FOR HELPING ISRAEL SO THE SAUDI TYCOON WHO HAD NEVER MET MR ARAFAT PAID HIM A VISIT I WALKED INTO HIS OFFICE AND YASSER WAS WEARING HIS GUN SO I SAID SHOOT ME' MR KHASHOGGI SAYS WE LAUGHED AND KISSED FOR THE NEXT SEVERAL MONTHS MR KHASHOGGI SAYS HE CARRIED PEACE FEELERS BETWEEN MR ARAFAT AND SHIMON PERES ISRAEL'S PRIME MINISTER AT THE TIME THE CONTACTS DIDN'T GO ANYWHERE BUT MR KHASHOGGI'S RAPPORT WITH MR PERES WHOM HE HAD KNOWN THROUGH MR SCHWIMMER WOULD BE CRUCIAL IN THE NEXT ADVENTURE TRADING ARMS FOR HOSTAGES WITH IRAN THE IRANCONTRA ESCAPADE STRAINED THE LONG KHASHOGGINIMRODI RELATIONSHIP THOUGH MR KHASHOGGI HAD INTRODUCED IRANIAN MIDDLEMAN MANUCHER GHORBANIFAR TO THE ISRAELIS AND PROVIDED BRIDGE LOANS FOR THE SECRET WEAPONS DEALS HE AND HIS OUTSIDE PARTNERS LOST AT LEAST 7 MILLION IN THE FIASCO ACCORDING TO THE FINAL REPORT OF SPECIAL PROSECUTOR LAWRENCE WALSH MUCH OF THEIR MONEY WAS DIVERTED TO NICARAGUA'S REBELS WHO WERE TRYING TO OUST THE SANDINISTA GOVERNMENT BY LT COL OLIVER NORTH MR WALSH CONCLUDED BY 1988 AFTER MR KHASHOGGI'S TRIAD AMERICAN CORP HAD COLLAPSED THE SAUDIISRAELI MACHINATIONS WERE BACK ON MR KHASHOGGI AGREED TO MEET IN LONDON WITH MEYER KAPLAN A NIMRODI PROTEGE WHO WAS STARTING A COMPANY TO BRING MUSLIM PILGRIMS TO JERUSALEM BRAINSTORMING TOGETHER MR KHASHOGGI ADVISED MR KAPLAN THAT ISRAEL'S CHIEF RABBI SHOULD INVITE MOROCCO'S KING HASSAN II A NOTED ARAB MODERATE TO JERUSALEM TO PRAY MR KHASHOGGI ALSO HELPED OPEN CONTACTS FOR THE ISRAELI WITH TOURISM OFFICIALS IN JORDAN AND OFFERED TO INVEST 1 MILLION IN THE ENTERPRISE HIMSELF THE MONEY HOWEVER STILL HASN'T ARRIVED IN JERUSALEM NOR HAS KING HASSAN II ADNAN IS BRILLIANT HE PENETRATES TO THE HEART OF THE PROBLEM BETWEEN MUSLIM AND JEW SAYS MR KAPLAN A RETIRED ISRAELI POLICE DETECTIVE AND HEAD OF MR NIMRODI'S ZIARA INTERNATIONAL THE INTIFADA OR PALESTINIAN UPRISING BRED STILL MORE KHASHOGGI INITIATIVES IN 1989 AT THE HEIGHT OF THE REBELLION MR KHASHOGGI PROPOSED THAT ISRAEL SIMPLY ABANDON THE GAZA STRIP HE AND SOME ARAB BACKERS WOULD STEP IN AND WITH 20 BILLION OR SO TURN THE SWATH OF SAND DUNES AND REFUGEE CAMPS INTO A CROSS BETWEEN LAS VEGAS AND HONG KONG MR KHASHOGGI DISCUSSED THE PLAN IN PARIS WITH MR SHARON THEN ISRAEL'S HOUSING MINISTER I TOLD HIM THE ONLY SOLUTION FOR GAZA WAS TO WALK OUT MR KHASHOGGI RECALLS LET THE ARABS WORRY ABOUT IT WITH ISRAELI PRIME MINISTER YITZHAK SHAMIR'S KNOWLEDGE MR NIMRODI EXPLORED THE CONCEPT FURTHER WITH BASSAM ABU SHERIF A CLOSE PLO ASSOCIATE OF MR ARAFAT THOUGH THE PERSIAN GULF WAR SPECIFICALLY SAUDI ANGER AT THE PLO FOR SYMPATHIZING WITH IRAQ KILLED THE PROPOSAL MESSRS KHASHOGGI AND NIMRODI TAKE CREDIT FOR LEADING THE WAY TO LAST SEPTEMBER'S AGREEMENT CALLING FOR ISRAEL'S EVENTUAL WITHDRAWAL FROM THE GAZA STRIP AND THE CITY OF JERICHO THIS WAS THE BEGINNING OF WHAT I CALL THE OPENING OF THE ISRAELI MIND MR KHASHOGGI SAYS ADDS MR NIMRODI ARAFAT AND RABIN TOOK THE GAZA IDEA FROM US AFTER THE GULF WAR AND THE MIDEAST PEACE CONFERENCE IN MADRID THE PACE QUICKENED MR KHASHOGGI BEGAN INVESTING HEAVILY IN ISRAELI STOCKS HE TRIED TO ORGANIZE A VISIT TO JERUSALEM BY 100 SAUDIS BUT WAS STYMIED BY JORDAN'S KING HUSSEIN A BOARDINGSCHOOL CLASSMATE WHO WOULDN'T LET THE GROUP TRAVEL THROUGH AMMAN LAST YEAR AFTER ENGINEERING COL GADHAFI'S 307 MILLION INVESTMENT IN A CHAIN OF LONHRO PLC HOTELS MR KHASHOGGI PERSUADED THE LIBYAN LEADER TO SEND 200 MUSLIM PILGRIMS TO JERUSALEM VIA MR NIMRODI'S COMPANY COL GADHAFI HOPED THE GESTURE WOULD ERODE HIS INTERNATIONAL ISOLATION CAUSED BY THE 1988 PAN AM JET BOMBING OVER LOCKERBIE SCOTLAND IN WHICH 270 PEOPLE WERE KILLED BUT THE TRIP BACKFIRED AMID A SWIRL OF ISRAELI PALESTINIAN AND LIBYAN RECRIMINATIONS GADHAFI'S A FRIEND OF THE PEACE PROCESS MR KHASHOGGI CONTENDS THEIR GAZA BUSINESS PLANS BEGAN CHURNING NEARLY A YEAR AGO MONTHS BEFORE THE ISRAELIPLO AGREEMENT WAS SIGNED MR NIMRODI PROPOSED TO HIS OLD FRIEND THAT THEY BUILD A 25 MILLION FACTORY TO PRODUCE HIGHCAPACITY WATER AND SEWAGE PIPE FOR EXPORT THROUGHOUT THE MIDEAST PARTICULARLY LIBYA THE PARTNERS CREATED A THREEWAY JOINT VENTURE WITH AN ITALIAN PIPEMAKER AND GOT THE ISRAELI GOVERNMENT TO RELEASE 38 ACRES OF LAND FOR THE PLANT ON THE EDGE OF THE GAZA STRIP LAST FALL MR KHASHOGGI MET WITH ISRAEL'S ECONOMIC MINISTER SHIMON SHETREET IN GENEVA TO DISCUSS THE PLAN GROUNDBREAKING IS SCHEDULED IN SIX MONTHS 500 GAZA ARABS ARE EXPECTED TO WORK IN THE PLANT THAT IS JUST FOR STARTERS MR KHASHOGGI'S THIRD WIFE 29YEAROLD SHAPURI A COUSIN OF THE LATE SHAH OF IRAN HAS COLLECTED 15 MILLION TO BUILD A CHILDREN'S HOSPITAL IN THE GAZA STRIP SHE RECENTLY VISITED ISRAEL TO MAKE CONTACTS MR KHASHOGGI HIMSELF IS RAISING CAPITAL FOR AN ARABISRAELI INVESTMENT BANK AND MR NIMRODI RECENTLY VISITED KUWAIT ON A NONISRAELI PASSPORT HE SAYS TO BUY A 10 STAKE IN SHOROUK AIRLINES A KUWAITIEGYPTIAN VENTURE THAT PLANS TO FLY TO JERUSALEM FROM CAIRO AND KUWAIT NEXT UP MESSRS NIMRODI AND KHASHOGGI HAVE SUBMITTED A PROPOSAL TO THE PLO AND WORLD BANK FOR A 60 MILLION GENERATOR TO HANDLE GAZA'S ELECTRICITY NEEDS AND TO POWER A DESALINIZATION PLANT THAT WOULD SUPPLY WATER FOR ONE MILLION PEOPLE MR NIMRODI WHO OWNS A DESALINIZATIONTECHNOLOGY COMPANY IN ISRAEL HAS BEEN DEVELOPING THE PROJECT FOR YEARS ADNAN AND ME WE KNOW HOW TO GET MONEY WE HAVE THE RIGHT CONNECTIONS WE CAN DEVELOP THE ECONOMY TO PUT ARABS AND JEWS TO WORK MR NIMRODI GUSHES MR KHASHOGGI REMAINS A LITTLE MORE COY I DON'T WANT THIS IMPRESSION TO BE LEFT THAT BECAUSE I'M DOING ONE OR TWO TRANSACTIONS WITH YAACOV HE'S MY ONLY AGENT HE SAYS I KNOW LOTS OF ISRAELIS SEE RELATED LETTER LETTERS TO THE EDITOR I AM NOT AN ARMS DEALER' WSJ FEB 18 1994 9402040108 YY94 MM02 9402180017 940218 COMMODITIES GRAIN TRADERS ARE ANTICIPATING A SPRING RALLY AFTER FUTURES PRICES SLUMP ACROSS THE BOARD BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN TRADERS ARE BETTING THAT THE FEBRUARY DOLDRUMS WILL GIVE WAY TO A SPRING RALLY PRICES OF GRAIN FUTURES CONTRACTS AT THE CHICAGO BOARD OF TRADE USUALLY FLOUNDER THIS TIME OF YEAR BECAUSE THE ACTION IS IN THE SOUTHERN HEMISPHERE FUTURES PRICES SLUMPED ACROSS THE BOARD YESTERDAY FOR EXAMPLE IN PART BECAUSE GRAIN EXPORTERS SUCH AS SOUTH AFRICA AND BRAZIL ARE PREPARING FOR BIG HARVESTS TRADERS ARE SPECULATING THAT SOUTH AFRICA WILL PRODUCE A NEARRECORD CORN CROP OF ROUGHLY 500 MILLION BUSHELS SUCH A LARGE CROP IN SOUTH AFRICA WHICH IS REBOUNDING FROM A DROUGHT TWO YEARS AGO COULD MEAN THE US FACES MORE COMPETITION IN MAJOR MARKETS SUCH AS JAPAN IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SANK SIX CENTS A BUSHEL TO SETTLE AT 28824 A BUSHEL SOYBEAN PRICES FELL IN CHICAGO AS WORD SPREAD THAT HEAVY RAINS ACROSS SOUTHERN BRAZIL DID LITTLE DAMAGE TO FIELDS IN THE RICHEST SOYBEAN GROWING REGION RICHARD A LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO SAID HE CONTINUES TO EXPECT BRAZIL TO HARVEST A RECORD 9333 MILLION BUSHELS OVER THE NEXT FEW MONTHS SUCH A LARGE HARVEST ALSO SIGNALS STIFF COMPETITION FOR US SOYBEANS IN THE WORLD MARKET THE SOYBEAN CONTRACT FOR MARCH DELIVERY AT THE EXCHANGE FELL 725 CENTS A BUSHEL TO SETTLE AT 674 A BUSHEL US GRAIN PRICES ARE EXPECTED TO JUMP AFTER THE FOREIGN HARVESTS END BECAUSE TRADERS WILL FOCUS ONCE AGAIN ON THE THIN DOMESTIC GRAIN SUPPLIES LEFT BEHIND BY LAST YEAR'S FLOODRELATED CROP DISASTER IN THE MIDWEST JOE VICTOR DIRECTOR OF MARKETING AT ALLENDALE INC CRYSTAL LAKE ILL SAID HIS FIRM SEES THE SOYBEAN CONTRACT FOR JULY DELIVERY CLIMBING TO 736 A BUSHEL THIS SPRING THE JULY CONTRACT SETTLED YESTERDAY AT 68275 A BUSHEL MR LOEWY AT AGRESOURCE SAID HE EXPECTS THE MAY CORN CONTRACT TO HIT 315 A BUSHEL BY THE END OF APRIL THE MAY CONTRACT SETTLED YESTERDAY AT 29450 A BUSHEL GRAIN PRICES USUALLY GYRATE IN THE SPRING AS WEATHER FORECASTS SIGNAL WHETHER MIDWEST FARMERS CAN PLANT THEIR FIELDS IN TIME THE MARKET WILL BE PARTICULARLY SENSITIVE THIS SPRING BECAUSE US GRAIN SUPPLIES ARE THE TIGHTEST SINCE THE MID1970S SOME METEOROLOGISTS ARE ALREADY PREDICTING A WETTERTHANNORMAL SPRING WHICH WOULD SLOW PLANTING MANY MIDWEST FIELDS ARE STILL SATURATED FROM LAST YEAR'S RECORD RAINFALL ACCORDING TO MR LOEWY US FARMERS WILL HAVE TO HARVEST A BUMPER CROP OF 88 BILLION BUSHELS OF CORN NEXT AUTUMN IN ORDER TO RETURN US SUPPLIES TO NORMAL LEVELS SUCH A HARVEST WOULD BE 39 LARGER THAN THE 1993 CROP IN OTHER FARM MARKETS ANALYSTS EXPECT A MONTHLY AGRICULTURE DEPARTMENT SURVEY SLATED FOR RELEASE AFTER THE CLOSE OF TRADING TODAY TO SHOW FEEDLOTS ARE FATTENING MORE CATTLE FOR SLAUGHTER DAN VAUGHT A LIVESTOCK TRADER AT AG EDWARDS & SONS ST LOUIS SAID HE EXPECTS THE GOVERNMENT TO REPORT THAT 919 MILLION CATTLE WERE ON FEEDLOTS IN THE SEVEN MAJOR RANCH STATES ON FEB 1 UP 2 FROM THE SAME 1993 DATE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES SETTLED LOWER AFTER A TOPSYTURVY TRADING DAY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY SETTLED AT 38430 AN OUNCE DOWN 1 ON THE DAY EARLY YESTERDAY GOLD'S PRICE ROSE ON FEARS OF INFLATION AND SPECULATIVE BUYING AFTER A DECLINE IN BOND PRICES SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC LATE IN THE DAY HOWEVER PRICES RETREATED AMID SELLING BY MIDDLE EASTERN INVESTOR SYNDICATES AS LONG AS INFLATION REMAINS SUBDUED MR SAVAIKO SAID GOLD IS LIKELY TO ENCOUNTER RESISTANCE WHEN IT MOVES TOWARD 390 AN OUNCE ENERGY AFTER WATCHING PRICES SLIDE FOR THREE SESSIONS IN A ROW BARGAINHUNTERS PUSHED PRICES HIGHER YESTERDAY IN PETROLEUM FUTURES TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE FOR MARCH DELIVERY GAINED 30 CENTS A BARREL TO FINISH AT 1423 APRIL CRUDE WAS UP BY A SIMILAR AMOUNT AND OTHER MONTHS WERE ALSO HIGHER THE GAINS CAME DESPITE A PERSISTENT PESSIMISM IN OIL MARKETS ABOUT THE CURRENT OVERSUPPLY OF CRUDE OIL AND THE LACK OF ANY REAL PROGRESS TOWARD PRODUCTION CUTS PETROLEUM PRODUCTS FUTURES WERE HIGHER TOO MARCH HEATING OIL TACKED ON 022 CENT A GALLON TO CLOSE AT 4524 CENTS AND MARCH GASOLINE GAINED 117 CENTS TO SETTLE AT 4306 CENTS A GALLON 9402180016 940218 CREDIT RATINGS MOODY'S MAY LOWER RATING ON ARCO DEBT TOTALING 56 BILLION NEW YORK MOODY'S INVESTORS SERVICE INC PLACED ITS RATINGS ON ABOUT 56 BILLION OF LONGTERM DEBT OF ATLANTIC RICHFIELD CO UNDER REVIEW FOR POSSIBLE DOWNGRADE REFLECTING THE CONTINUING IMPACT OF LOWER CRUDEOIL PRICES AND ARCO'S RECENT DISAPPOINTMENTS IN FINDING REPLACEMENT RESERVES ARCO BASED IN LOS ANGELES DECLINED TO COMMENT ON THE MOODY'S ACTION THE MOVE FOLLOWS A SIMILAR ACTION BY MCGRAWHILL INC'S STANDARD & POOR'S CORP WHICH PLACED ARCO AND 10 OTHER OIL COMPANIES ON ITS LIST FOR POSSIBLE RATINGS DOWNGRADES MOODY'S SAID ITS REVIEW WILL FOCUS ON THE IMPACT OF LOWER CRUDE PRICES ON ARCO'S CASH FLOW AND FINANCIAL LEVERAGE WITH CRUDE OIL ACCOUNTING FOR ABOUT 70 OF ARCO'S PRODUCTION ARCO'S CASH FLOW AND PETROLEUMPRODUCTION PROFILE ARE PARTICULARLY VULNERABLE TO OILPRICE DECLINES MOODY'S NOTED THE RATINGS CONCERN SAID ITS REVIEW WILL ALSO TAKE INTO ACCOUNT THE HIGH INVESTMENTS ARCO WILL NEED TO MAKE TO HUNT FOR REPLACEMENT RESERVES AND TO MEET CHANGING REFINERY AND ENVIRONMENTAL REGULATIONS ARCO HAS SUSTAINED SEVERAL MAJOR DISAPPOINTMENTS RECENTLY IN ITS EXPLORATION ATTEMPTS IN NORTHERN ALASKA MOODY'S WILL ALSO CONSIDER ARCO'S RECENTLY ANNOUNCED REORGANIZATION OF ITS DOMESTIC OIL AND GAS OPERATIONS FOR WHICH THE COMPANY IS TAKING A 450 MILLION CHARGE TO EARNINGS UNDER REVIEW FOR POTENTIAL DOWNGRADE ARE THE SINGLEA1 RATINGS FOR LONGTERM DEBT OF THE COMPANY AND ITS GUARANTEED SUBSIDIARIES THE PRIME1 RATINGS FOR COMMERCIAL PAPER ISSUED BY ARCO ARCO COAL AUSTRALIA INC KUPARUK TRANSPORTATION CAPITAL CORP AND ARCO BRITISH LTD AREN'T UNDER REVIEW MOODY'S SAID 9402180015 940218 CREDIT RATINGS CITICORP NEW YORK STANDARD & POOR'S CORP SAID IT PLACED THE RATINGS OF THIS MAJOR BANKING COMPANY AND ITS UNITS ON CREDITWATCH WITH POSITIVE IMPLICATIONS IN LIGHT OF THE POSITIVE TRENDS THAT HAVE DEVELOPED IN SEVERAL FUNDAMENTAL ASPECTS OF THE COMPANY'S FINANCIAL CONDITION ABOUT 18 BILLION IN LONGTERM DEBT IS AFFECTED S&P SAID THE LARGE QUANTITY OF BAD LOANS IS BEGINNING TO BE WORKED DOWN S&P SAID IN ADDITION COST CUTS HAVE HELPED THE COMPANY RETURN TO PROFITABILITY AND GENERATE RETAINED EARNINGS TO REBUILD ITS CAPITAL BASE RATINGS UNDER REVIEW INCLUDE S&P'S SINGLEAMINUS SENIOR DEBT RATINGS OF CITICORP AND CITICORP FINANCE PLC AND ITS TRIPLEBPLUS RATINGS ON SUBORDINATED DEBT OF CITICORP CITICORP BANKING CORP AND CITICORP PERSONTOPERSON INC KROGER CO CINCINNATI MOODY'S INVESTORS SERVICE INC PLACED ITS BA2 RATING OF THIS SUPERMARKET CHAIN'S LONGTERM DEBT UNDER REVIEW FOR POSSIBLE UPGRADE CITING THE COMPANY'S SUCCESSFUL EFFORTS TO REFINANCE DEBT WITH LOWER INTEREST RATES ABOUT 26 BILLION IN DEBT IS AFFECTED THE RATINGS AGENCY SAID THE COMPANY COULD BENEFIT FROM HIGHER CAPITALSPENDING PLANS FOR NEW STORES AND RENOVATIONS MOREOVER MOODY'S SAID KROGER'S PRIVATELABEL AND COSTCONTAINMENT EFFORTS HAVE TRANSLATED TO SIGNIFICANTLY HIGHER EARNINGS MCI COMMUNICATIONS CORP WASHINGTON MOODY'S INVESTORS SERVICE INC UPGRADED THE DEBT RATINGS OF MCI AMONG OTHER UPGRADES MOODY'S RAISED THE RATING ON THE COMPANY'S SENIOR UNSECURED NOTES DEBENTURES AND MEDIUMTERM NOTES TO A2 FROM BAA1 CITING THE COMPANY'S STRONG FINANCIAL POSITION AND A PROPOSED ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC ABOUT 18 BILLION OF DEBT IS AFFECTED SHELL CANADA LTD CALGARY ALBERTA MOODY'S INVESTOR SERVICE INC LOWERED ITS LONGTERM RATING ON 900 MILLION OF THIS PETROLEUM COMPANY'S EURODEBENTURES AND NOTES TO A1 FROM AA3 CITING POOR PROSPECTS FOR INCREASING ITS CORE ASSETS MOODY'S PREDICTED THAT SHELL CANADA'S RETURNS FROM NATURAL GAS PRODUCTION AND PETROLEUM REFINING AND MARKETING WILL BE LIMITED BY EXTERNAL FACTORS AND WARNED THAT SPENDING CUTS AND DECLINING OIL RESERVES COULD ERODE ITS ASSET BASE HOWEVER IT SAID ROYAL DUTCH/SHELL GROUP'S 78 OWNERSHIP OF SHELL CANADA IS A STABILIZING FACTOR A SHELL CANADA SPOKESMAN SAID THE DOWNGRADE WON'T AFFECT THE COMPANY BECAUSE IT DOESN'T PLAN TO BORROW MONEY FOR SEVERAL YEARS 9402180014 940218 CDI EXPECTS TO POST IMPROVED EARNINGS FOR FOURTH QUARTER NEW YORK CDI CORP RIDING THE OUTSOURCING TREND AMONG MAJOR COMPANIES EXPECTS TO REPORT IMPROVED EARNINGS AND REVENUE FOR THE FOURTH QUARTER AND ALL OF 1993 AS THE ECONOMY GETS STRONGER OUTSOURCING IS GAINING CHIEF FINANCIAL OFFICER EDGAR D LANDIS SAID IN AN INTERVIEW THE PHILADELPHIA TEMPORARYPERSONNEL SERVICES COMPANY MARKETS ITSELF AS AN OUTSOURCING SERVICE FOR TECHNICAL NEEDS MR LANDIS SAID HE DESCRIBED OUTSOURCING AS THE DECISION BY COMPANIES TO SEEK PERMANENT HELP FROM OUTSIDE COMPANIES FOR PERIPHERAL NONCORE ACTIVITIES LAST YEAR'S RESULTS SHOULD CONTINUE A STRONG TURNAROUND FOR CDI WHICH LIKE SOME OTHER TEMPORARY STAFF COMPANIES HIT BY THE RECESSION HAD DECLINING REVENUE IN 1991 AND REPORTED A LOSS FOR THE YEAR MR LANDIS SAID HE'S COMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES OF ABOUT 12 CENTS A SHARE FOR THE RECENT FOURTH QUARTER COMPARED WITH FOUR CENTS A YEAR EARLIER AND 40 CENTS FOR ALL OF 1993 COMPARED WITH 17 CENTS IN 1992 MR LANDIS ALSO SAID HE'S COMFORTABLE WITH ZACKS INVESTMENT RESEARCH'S MEAN EARNINGS ESTIMATE OF ABOUT 67 CENTS FOR 1994 BASED ON A SURVEY OF THREE ANALYSTS ACCORDING TO LANDIS CDI WILL REPORT FOURTHQUARTER REVENUE OF 238 MILLION 9 ABOVE THE PRIOR YEAR'S 2183 MILLION FOR THE YEAR REVENUE SHOULD HAVE RISEN 8 TO 921 MILLION FROM 1992'S 855 MILLION THE COMPANY SAID REVENUE IN ITS LARGEST DIVISION TECHNICAL SERVICES ROSE 15 TO 776 MILLION FOR 1993 MR LANDIS SAID THE FOURTH QUARTER SHOWED CONTINUED IMPROVEMENT IN BACKLOG OF NEW BUSINESS IN THE AUTOMOTIVE SEGMENT OF TECHNICAL SERVICES HE SEES THIS TREND CONTINUING IN 1994 9402180013 940218 TECHNOLOGY NOVELL IS IN TALKS TO SELL SOURCE LICENSES' TO UNIX PROGRAM TO BIG COMPUTER FIRMS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC SAID IT IS TALKING WITH SEVERAL BIG COMPUTER MAKERS ABOUT SELLING SOURCE LICENSES TO ITS UNIX COMPUTER PROGRAM IN A MOVE THAT COULD BRING THE COMPANY MORE THAN 100 MILLION NOVELL CURRENTLY RECEIVES ROYALTIES ON LICENSES OF THE SOURCE CODE OF UNIX WHICH THE COMPANY ACQUIRED LAST YEAR FROM AMERICAN TELEPHONE & TELEGRAPH CO UNIX IS A PROGRAM THAT CONTROLS THE BASIC OPERATIONS OF HIGHPOWERED DESKTOP COMPUTERS AND COMES LOADED ON THEM UNLIKE OTHER OPERATING PROGRAMS SUCH AS THOSE SOLD BY MICROSOFT CORP THE CORE CODE COMPRISING UNIX CAN BE LICENSED BY COMPUTER COMPANIES WHICH THEN ARE FREE TO MODIFY UNIX WE ARE QUITE ANXIOUS TO MAKE THESE DEALS BECAUSE IT WILL HELP SUCH BIG BACKERS OF UNIX AS SUN MICROSYSTEMS INC HEWLETTPACKARD CO AND INTERNATIONAL BUSINESS MACHINES CORP ENLARGE THE MARKET FOR UNIX SAID RAY NOORDA CHIEF EXECUTIVE OFFICER OF PROVO UTAHBASED NOVELL PROCEEDS FROM THE SALE OF LICENSES COULD EXCEED HALF OF A NORMAL YEAR'S PROFIT FOR NOVELL HOWEVER ANALYSTS WORRY THAT THE EFFORT TO SELL LICENSES REFLECTS NOVELL'S INABILITY TO SELL A SINGLE UNIX PACKAGE THAT IS ACCEPTABLE TO ALL ITS MAJOR CUSTOMERS NOVELL IS REALLY GETTING A PAYBACK ON SOME OF ITS NEARLY 400 MILLION ACQUISITION OF UNIX SYSTEMS LABS SAID DAVID CARD AN ANALYST AT INTERNATIONAL DATA CORP MR NOORDA DISPUTED THIS VIEW SAYING NOVELL ISN'T HAVING DIFFICULTIES SETTING THE AGENDA FOR UNIX HE SAID THAT BUYING A LICENSE WOULD REQUIRE A SIZABLE UPFRONT PAYMENT BUT THAT IT WAS A BOON FOR THOSE UNIX CUSTOMERS THAT NO LONGER WANTED TO PAY ROYALTIES ON AN ANNUAL BASIS BESIDES BUYERS OF THE UNIX SOURCE CODE WOULD GAIN WIDER LATITUDE TO PUT THEIR OWN STAMP ON THE PROGRAM HE SAID PEOPLE FAMILIAR WITH NOVELL'S UNIX BUSINESS SAID THAT THE HIGHESTVOLUME RESELLERS OF UNIX PAY ABOUT 25 ON EVERY COMPUTER THEY SELL IN SUN'S CASE THIS WOULD MEAN PAYMENTS OF LESS THAN 10 MILLION A YEAR LOWVOLUME LICENSEES MIGHT PAY 100 A COPY ALTOGETHER NOVELL'S YEARLY LICENSING REVENUE FROM UNIX IS IN THE RANGE OF 100 MILLION BUT ONLY A FRACTION OF THAT COMES FROM THE COMPUTER MAKERS TO WHICH NOVELL IS OFFERING THE UPFRONT ARRANGEMENT THE SALE OF LICENSES THE FIRST OF WHICH MR NOORDA SAID COULD BE COMPLETED WITHIN TWO MONTHS COMES AT A TIME WHEN UNIX IS BATTLING TO REPEL AN ATTEMPT BY MICROSOFT TO MOVE IN ON ITS FOLLOWING LAST JULY MICROSOFT INTRODUCED AN OPERATING PROGRAM CALLED WINDOWS NT WHICH SHARES MANY FEATURES WITH UNIX BUT ALSO RUNS SOFTWARE WRITTEN FOR MOST PERSONAL COMPUTERS WHICH UNIX DOESN'T MR NOORDA CONCEDED THAT THE SALE OF LICENSES MIGHT FURTHER FRAGMENT UNIX WHOSE ACCEPTANCE HAS BEEN SLOWED IN THE PAST BY THE PROLIFERATION OF DIFFERENT VERSIONS BUT HE ARGUED THAT THIS WAS UNLIKELY TO HAPPEN IF UNIX SUPPORTERS HEWED TO A STANDARD THAT ULTIMATELY WILL MAKE IT POSSIBLE FOR THE SAME APPLICATION TO RUN ON MANY VARIETIES OF UNIX AN EXECUTIVE AT SUN MICROSYSTEMS WHO CONFIRMED THAT NEGOTIATIONS WERE UNDER WAY SAID THAT SUN WAS ATTRACTED TO THE PROSPECT OF SAVING MONEY IN THE LONG RUN BY BUYING A LICENSE THE DEAL ALSO COULD PAVE THE WAY FOR SUN TO OFFER SOMEDAY AN ENTIRELY HOMEGROWN OPERATING PROGRAM THAT HAS NO TIES TO UNIX OTHER THAN ITS ABILITY TO RUN FAMILIAR UNIX APPLICATIONS ALREADY UNIX LICENSEES SUCH AS SUN OFTEN DON'T RELY ON MUCH CODE FROM NOVELL BUT THEY STILL NEED ACCESS TO THE TRADE NAME UNIX AND TO BE ABLE TO LEGALLY REPRESENT THE UNIX CONVENTIONS A SPOKESMAN FOR HP CONFIRMED THAT IT WAS IN TALKS WITH NOVELL BUT DECLINED TO COMMENT FURTHER 9402180012 940218 WHO'S NEWS EQUITABLE PROMOTES BENSON TO PRESIDENT OF ITS LARGEST UNIT FOR LIFE INSURANCE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EQUITABLE COS PROMOTED JAMES BENSON TO PRESIDENT OF ITS LARGEST UNIT INCREASING HIS CHANCES OF BECOMING CHAIRMAN OF THE FINANCIAL SERVICES COMPANY MR BENSON 47 YEARS OLD WILL BECOME PRESIDENT OF EQUITABLE LIFE ASSURANCE CO OF THE US HE JOINED EQUITABLE LESS THAN A YEAR AGO AS SENIOR EXECUTIVE VICE PRESIDENT AFTER HAVING BEEN PRESIDENT OF THE NEW YORK OFFICE OF A CONSULTING FIRM RICHARD JENRETTE CURRENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EQUITABLE TURNS 65 THIS YEAR YESTERDAY HE SAID THAT HE HAS NO NEARTERM PLANS TO RETIRE HOWEVER ANALYSTS DON'T EXPECT HIM TO REMAIN AT THE HELM FOR MORE THAN A FEW YEARS THEY ADD THAT WHETHER MR BENSON OR HIS BOSS JOSEPH MELONE SUCCEEDS MR JENRETTE WILL DEPEND ON WHEN MR JENRETTE RETIRES MR MELONE IS NOW 62 EVEN IF MR MELONE SERVES AS CHAIRMAN FOR A BRIEF PERIOD IT NOW APPEARS MORE LIKELY THAT MR BENSON WILL EVENTUALLY ASSUME THE TITLE THIS MAKES THE LINE OF SUCCESSION CLEAR SAID CS FIRST BOSTON ANALYST VANESSA WILSON IN ANNOUNCING MR BENSON'S PROMOTION EQUITABLE ALSO NAMED MR MELONE TO SUCCEED MR JENRETTE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE LIFE INSURANCE OPERATION EFFECTIVE IMMEDIATELY MR MELONE HAD BEEN PRESIDENT OF THAT UNIT BEFORE EQUITABLE WENT PUBLIC IN THE SUMMER OF 1992 THE COMPANY HAD BROUGHT IN MR MELONE THEN A HIGHRANKING OFFICIAL WITH PRUDENTIAL INSURANCE CO OF AMERICA TO BRING STABILITY TO ITS SALES FORCE EQUITABLE'S SALES FORCE HAS ALWAYS BEEN ONE OF ITS MAJOR STRENGTHS AND THE COMPANY WAS WORRIED ABOUT LOSING INSURANCE AGENTS BECAUSE OF THE FINANCIAL TROUBLES IT EXPERIENCED AT THE TIME NOW THAT EQUITABLE HAS CURED ITS FINANCIAL WOES THE COMPANY SEEKS TO EXPAND MR BENSON WHOSE EXPERTISE LIES IN MARKETING WILL BE RESPONSIBLE FOR DEVELOPING AND SELLING PRODUCTS NEEDED TO MAKE EQUITABLE GROW WE GOT THE BALANCE SHEET IN GOOD SHAPE MR MELONE SAID NOW THE NAME OF THE GAME IS HOW TO IMPROVE THE PROFIT AND LOSS STATEMENT MR BENSON SPENT 15 YEARS WITH PACIFIC MUTUAL LIFE INSURANCE CO BEFORE JOINING THE NEW YORK OFFICE OF MANAGEMENT COMPENSATION GROUP A CONSULTING FIRM HE SAID HE HAS NO PLANS TO CHANGE THE MARKETING STRATEGY EQUITABLE ALREADY HAS IN PLACE THE COMPANY MR BENSON SAID WILL CONTINUE TO FOCUS ON SELLING TO THE BABY BOOM GENERATION WHICH IS A GROUP MANY INSURERS HAVE TARGETED BECAUSE OF ITS FAVORABLE DEMOGRAPHICS EQUITABLE WILL ALSO CONTINUE TO PROMOTE VARIABLE INSURANCE PRODUCTS IN WHICH THE BUYER DETERMINES HOW TO INVEST THE PREMIUMS AND TAKES THE RISK FOR THE INVESTMENT RESULTS MR MELONE WHO IN ADDITION TO RUNNING THE LIFE INSURANCE COMPANY RETAINS HIS JOB AS PRESIDENT OF THE PARENT COMPANY PLAYED DOWN THE IDEA THAT MR BENSON IS BEING GROOMED TO BECOME CHAIRMAN MR MELONE SAID OTHER EXECUTIVES WITHIN EQUITABLE INCLUDING JOHN CHALSTY AND DAVID WILLIAMS BOTH 60 WILL ALSO BE CONSIDERED MR CHALSTY HEADS EQUITABLE'S BROKERAGE UNIT DONALDSON LUFKIN & JENRETTE MR WILLIAMS HEADS EQUITABLE'S MONEY MANAGEMENT ARM ALLIANCE CAPITAL MANAGEMENT NEITHER HOLDS EXECUTIVE POSITIONS AT THE PARENT COMPANY ALTHOUGH MR WILLIAMS SITS ON EQUITABLE'S BOARD OF DIRECTORS CS FIRST BOSTON'S MS WILSON NOTED THAT BECAUSE BOTH MEN ALREADY HEAD THEIR OWN EMPIRES WITHIN EQUITABLE THEY MIGHT FIND RUNNING THE PARENT COMPANY LESS ENJOYABLE THAN THEIR CURRENT POSITIONS BOTH DLJ AND ALLIANCE ARE ALSO MORE INDEPENDENT THAN THE LIFE INSURANCE UNIT ALLIANCE ALREADY HAS PUBLIC STOCKHOLDERS AND DLJ IS LIKELY TO BE TAKEN PUBLIC 9402180011 940218 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY FED ROULETTE WHO WILL FILL THE EMPTY CHAIRS AT THE CENTRAL BANK WITH TWO VACANCIES ON THE BOARD OF GOVERNORS WHITE HOUSE ECONOMIST ALAN BLINDER EMERGES AS THE MOST LIKELY SUCCESSOR TO DAVID MULLINS AS VICE CHAIRMAN IF HE WANTS THE JOB MULLINS USES HIS OLD ARKANSAS TIES TO LOBBY FOR HIM BUT IT ISN'T CLEAR IF BROOKINGS ECONOMIST GEORGE PERRY ANOTHER CONTENDER WOULD ACCEPT ANY SEAT OTHER THAN THE VICE CHAIRMANSHIP MOREOVER NAMING BLINDER WOULD ADD TO PRESSURE ON CLINTON TO NAME A WOMAN OR MINORITY RATHER THAN PERRY TO THE OTHER VACANCY WITH WHITE MEN RUNNING THE FED'S 12 REGIONAL BANKS IT LOOKS FOR A WOMAN OR MINORITY TO FILL AN IMPENDING VACANCY AT THE BOSTON FED CONTENDERS INCLUDE THE BANK'S FIRST VICE PRESIDENT CATHY MINEHAN AND TREASURY OFFICIAL ALICIA MUNNELL SPECULATION GROWS THAT REAGAN APPOINTEE JOHN LAWARE 66 MAY RETIRE FROM THE FED BOARD HIS TERM RUNS TO 2002 OPTIMISM GROWS ABOUT SOMALIA AS THE US EXIT DEADLINE NEARS AFTER MONTHS OF EXPECTING A FALLOFSAIGONTYPE DEBACLE WHEN US FORCES PULL OUT MARCH 31 OFFICIALS NOW REPORT A SERIES OF ENCOURAGING SIGNS DESPITE AN INCREASE IN BANDITRY WE SENSE A MAJOR SHIFT ONE THAT SUGGESTS OUR POLICIES MAY SUCCEED AFTER ALL STATED A RECENT CONFIDENTIAL STATE DEPARTMENT CABLE OFFICIALS NOW SEE AT LEAST THE POSSIBILITY OF A PEACEFUL RESOLUTION OF SOMALI CLAN CONFLICTS A NEW WILLINGNESS TO COMPROMISE ON THE PART OF WARLORD AIDID AND ELEMENTS OF A RUDIMENTARY POLICE FORCE COMING TOGETHER THE US COMMITTEE RUNNING SOMALIA POLICY IN AN UNDISCLOSED POLICY MOVE HAS DECIDED THAT US DIPLOMATS SHOULD REMAIN IN SOMALIA AND INVOLVED AFTER MARCH 31 TO PROTECT THEM THE US MAY FOLLOW A PRECEDENT SET IN BEIRUT AND HIRE MERCENARIES CLINTONITES FACE LIBERAL COMPLAINTS ON THE CRIME BILL CROWING THAT THEY HAVE ALREADY STOLEN THE GETTOUGH SIDE OF THE DEBATE FROM THE REPUBLICANS THEY STILL MUST MANEUVER PAST REBELLING HOUSE LIBERALS IF THEY HOPE TO GET A BILL FOR THE PRESIDENT TO SIGN BY EARLY SPRING THIS WEEK'S BLAST BY EXJUSTICE OFFICIAL HEYMANN CUTS BOTH WAYS CLINTON ADVISERS SAY HAPPILY IT SOUNDS AS IF HE IS ACCUSING CLINTON OF GETTING TOO TOUGH ON CRIME A RAP THE PRESIDENT WILL GLADLY ACCEPT IN THE CURRENT CLIMATE BUT HEYMANN'S COMPLAINTS MAY COMPLICATE NEGOTIATIONS WITH THE LIBERALS BECAUSE HE IS EXPRESSING MISGIVINGS THEY SHARE ONE POSSIBLE CLINTON ADVANTAGE IN THE STRUGGLE WITH LIBERALS POLLS SHOW BLACK PUBLIC OPINION IS TURNING NOTABLY HAWKISH ON CRIME DEMOCRATIC OPERATIVES EXPECT THE LABOR MOVEMENT GATHERING AT THE ANNUAL AFLCIO CONVENTION THIS WEEKEND IN FLORIDA TO FREEZE OUT THE OFFICIAL DEMOCRATIC CONGRESSIONAL AND SENATE CAMPAIGN COMMITTEES THIS YEAR IN PROTEST OF NAFTA LABOR WILL STILL SPEND MONEY DIRECTLY ON INDIVIDUAL DEMOCRATIC CANDIDATES IT LIKES AND WILL GIVE SUBSTANTIALLY TO THE CAMPAIGN TO PASS CLINTON'S HEALTH PLAN DEFICIT HAWKS IN THE ADMINISTRATION WINCE AS CLINTON STUMPING FOR HIS HEALTH PLAN AND AGAINST THE BALANCEDBUDGET AMENDMENT VOWS NOT TO TOUCH SOCIAL SECURITY OR MEDICARE BENEFITS THEY ACCOUNT FOR NEARLY ONETHIRD OF FEDERAL OUTLAYS AND FEW CREDIBLE LONGRUN DEFICITREDUCTION PLANS EXEMPT THEM ALTOGETHER HOLLYWOOD CONTINUES TO TAKE CARE OF DEMOCRATS DESPITE CLINTON'S EFFORTS TO STRIKE SOME DISTANCE HOLLYWOOD MOGULS GAVE THE DEMOCRATIC NATIONAL COMMITTEE OVER 1 MILLION IN THE SECOND HALF OF LAST YEAR WITH DISNEY STUDIOS HEAD JEFFREY KATZENBERG PRODUCER DAVID GEFFEN AND STEVEN SPIELBERG GIVING 100000 EACH BARBRA STREISAND GAVE 25000 HELLO AGAIN CLINTON MOVES AHEAD WITH PLANS TO REAPPOINT TWO FEDERAL ELECTION COMMISSION MEMBERS TO THEIR THIRD SIXYEAR TERMS DESPITE COMPLAINTS FROM ELECTIONREFORM ADVOCATES THAT THE AGENCY NEEDS A TOTAL OVERHAUL ONLY ONE NEW PERSON HAS JOINED THE SIXMEMBER PANEL SINCE 1986 THE BALANCEDBUDGET AMENDMENT FACES TOUGH PROSPECTS IN THE SENATE DEBATE STARTS NEXT WEEK AND SPONSOR SIMON BACKED BY ALMOST HALF OF DEMOCRATS AND A NEARLY SOLID GOP BLOC RIDES A POWERFUL WAVE OF PUBLIC SUPPORT BUT CHIEF OPPONENT BYRD MAY USE HIS CLOUT AND MASTERY OF SENATE RULES TO DELAY A FINAL VOTE TWOTHIRDS APPROVAL IS NEEDED WHILE UNDERCUTTING BACKERS WITH CRIPPLING AMENDMENTS SEVERAL REMAINING UNDECIDEDS INCLUDING DEMOCRATS REID HARKIN MIKULSKI AND SASSER SERVE ON BYRD'S APPROPRIATIONS COMMITTEE MEANWHILE MODERATE REPUBLICAN JEFFORDS AN ERSTWHILE SIMON COSPONSOR NOW IS LEAVING HIS OPTIONS OPEN A SPOKESMAN SAYS WHITE HOUSE STATEBYSTATE FIGURES ASSERT THE AMENDMENT WOULD COST HIS VERMONT CONSTITUENTS 418 MILLION A YEAR IN BENEFITS AND SERVICES PEROT'S UNITED WE STAND AMERICA SERVES NOTICE THAT IT INTENDS TO FOCUS HARD ON THE BALANCED BUDGET VOTE MINOR MEMOS COMMON CAUSE BALANCEDBUDGET AMENDMENT FOES TOUT SUPPORT NOT ONLY FROM FORMER WATERGATE PROSECUTOR ARCHIBALD COX BUT FROM THE MAN WHO FIRED HIM IN THE SATURDAY NIGHT MASSACRE ROBERT BORK MOTHER TERESA FILES A BRIEF URGING THE SUPREME COURT TO HEAR AN APPEAL IN A NEW JERSEY ABORTION CASE A DIRECTMAIL PIECE HAWKING RUSH LIMBAUGH'S NEWSLETTER PROUDLY TRUMPETS THIS ENVELOPE WAS NOT PRINTED ON RECYCLED PAPER 9402180010 940218 SULLIVAN COMMUNICATIONS DEBT OFFERING IS KILLED BY MORGAN STANLEY UNIT IS SOLD BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC YANKED A PLANNED 185 MILLION JUNKBOND OFFERING FOR SULLIVAN COMMUNICATIONS INC AND INSTEAD ARRANGED A SALE OF SULLIVAN'S INSERTCOUPON BUSINESS TO A NEWS CORP UNIT THE PLANNED SULLIVAN OFFERING LED TO A FIRESTORM OF CONTROVERSY AS PREVIOUSLY REPORTED SOME ANALYSTS SAID THAT SULLIVAN HAD VIRTUALLY NO CASH FLOW TO PAY THE DEBT'S INTEREST AND THAT LOSSES FROM ITS FREESTANDING INSERTCOUPON BUSINESS WERE MOUNTING ALL THE NOISE COULD HAVE MADE THE BOND OFFERING UNECONOMICAL JAMES T SULLIVAN CHAIRMAN AND CHIEF EXECUTIVE OF SULLIVAN COMMUNICATIONS SAID IN AN INTERVIEW THE SURPRISE SALE TO NEWS AMERICA FSI INC BOOSTED THE SHARES OF SULLIVAN RIVALS PARTICULARLY VALASSIS COMMUNICATIONS INC VALASSIS A LIVONIA MICH PRINTING CONCERN JUMPED 575 A SHARE OR 49 TO CLOSE AT 1750 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE BIGGEST GAINER ON THE BIG BOARD YESTERDAY MORE BROADLY SULLIVAN'S SALE OF ITS UNIT TO A COMPETITOR PROMISES TO END A SEVERE PRICING WAR THAT HAS DEPRESSED THE INSERTCOUPON BUSINESS SINCE THE UNIT SULLIVAN MARKETING INC ENTERED THE THE FIELD IN 1992 SULLIVAN MARKETING AND OTHERS PRINT THE COUPON BOOKLETS THAT ARE TUCKED INTO NEWSPAPERS ABOUT 85 OF THIS YEAR'S BUSINESS IS ALREADY NAILED DOWN IN LONGTERM AGREEMENTS ANALYSTS SAID BUT YOU CAN BE CERTAIN THAT THE 1995 CONTRACTS WILL BE ROLLED OVER AT MUCH HIGHER PRICES SAID C CLIVE MUNRO OF MONTECITO RESEARCH WHO FOLLOWS VALASSIS HE PREDICTS THAT VALASSIS SHARES WILL JUMP TO 30 WITHIN 15 MONTHS THE MOVE BY SULLIVAN A CLOSELY HELD BRENTWOOD TENN PRINTING CONCERN IS AN EMBARRASSMENT FOR MORGAN THE INVESTMENT BANK'S MORGAN STANLEY LEVERAGED EQUITY FUND II LEVERAGEDBUYOUT UNIT HOLDS THE MAJORITY OF SULLIVAN'S EQUITY MORGAN HAD PEDDLED THE OFFERING TO INSTITUTIONAL INVESTORS ON A ROAD SHOW DURING THE PAST WEEK WITHOUT MUCH LUCK TRADERS SAID INDEED SOME BIG MUTUALFUND GROUPS INCLUDING GIANT FIDELITY INVESTMENTS SNUBBED THE OFFERING PEOPLE FAMILIAR WITH THE MATTER SAID FIDELITY DECLINED TO COMMENT THERE WERE MANY LARGE MUTUAL FUNDS THAT ULTIMATELY WOULD HAVE BOUGHT THIS TRANSACTION HAD WE TAKEN IT TO THAT POINT A MORGAN OFFICIAL SAID HE ADDED THESE SECURITIES COULD HAVE BEEN PRICED BUT THE IMPACT ON OUR ABILITY TO ASSESS THE PROPER RISKRETURN FOR OUR INVESTORS WAS DIMINISHED THE ISSUE HAD BECOME SO CLOUDED THAT WE WERE NOT AT ALL COMFORTABLE PRICING THE TRANSACTION TERMS OF THE SALE TO THE NEWS CORP UNIT WEREN'T DISCLOSED BUT PEOPLE FAMILIAR WITH THE TRANSACTION SAY IT WAS VALUED AT ABOUT 15 MILLION NEWS CORP DECLINED TO COMMENT NEWS CORP'S AMERICAN DEPOSITARY RECEIPTS ROSE 875 CENTS A SHARE OR 15 CLOSING AT 59 YESTERDAY IN BIG BOARD COMPOSITE TRADING WE HAD AN OFFER AND ACCEPTED IT IT'S AS SIMPLE AS THAT SAID MR SULLIVAN WHO DECLINED TO DISCUSS TERMS SOME ANALYSTS SUGGESTED THAT THE SULLIVAN BOND DEAL WAS SCOTCHED BECAUSE THE FIRM'S INSERTCOUPON BUSINESS WAS BLEEDING MR MUNRO ESTIMATED THAT SULLIVAN'S COUPON BUSINESS WAS LOSING ABOUT 1 MILLION ON EACH BOOKLET THE DEAL WAS EQUIVALENT TO PAYING OFF YOUR MORTGAGE WITH A MASTERCARD BUT EVEN WORSE PAYING IT OFF WHEN YOU'RE UNEMPLOYED HE SAID NONSENSE REPLIED MR SULLIVAN WE MIGHT LOSE 15 MILLION ON SOME BOOKS WE MIGHT MAKE A COUPLE OF HUNDRED THOUSAND ON OTHERS MR SULLIVAN SAID HE SAID SULLIVAN EXPECTED THE COUPON BUSINESS TO HAVE A LOSS OF ABOUT 21 MILLION IN FISCAL 1995 THAT'S ABOUT 750000 ON AVERAGE PER BOOKLET MR SULLIVAN SAID ALSO PUTTING PRESSURE ON THE OFFERING WAS AN UNFAVORABLE REVIEW OF SULLIVAN'S DEBT BY STANDARD & POOR'S CORP SELLING THE COUPONINSERT BUSINESS DOES TAKE AWAY A MAJOR RISK OR UNCERTAINTY SAYS NICHOLAS RICCIO AN S&P ANALYST SULLIVAN'S OTHER BUSINESSES INCLUDING PRINTING AND PREPRESS SERVICES WON'T BE AFFECTED BY THE SALE BUT THE SALE MEANS THAT SULLIVAN MARKETING WILL LAY OFF AS MANY AS 60 PEOPLE IN ITS INSERTCOUPON BUSINESS MORGAN STOOD TO MAKE ABOUT 65 MILLION IN UNDERWRITING FEES FOR PLACING SULLIVAN'S JUNKBOND ISSUE ITS FEE FOR ARRANGING THE SALE ZERO 9402180009 940218 SEC MAY ISSUE REPORT ON POLITICAL DONATIONS IN MUNIBOND MARKET WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION MIGHT ISSUE A SPECIAL REPORT ON THE FINDINGS OF ITS INQUIRY INTO THE ROLE OF POLITICAL CONTRIBUTIONS IN THE MUNICIPALBOND MARKET ACCORDING TO SEC COMMISSIONER RICHARD ROBERTS MR ROBERTS ALSO SAID THE AGENCY WILL ADDRESS THE ISSUE IN AN INTERPRETATIVE RELEASE SPELLING OUT MUNIDISCLOSURE OBLIGATIONS UNDER THE FEDERAL SECURITIES LAWS MR ROBERTS SAID THE SEC'S ENFORCEMENT STAFF HAS COLLECTED A GREAT DEAL OF INFORMATION CONCERNING THIS ISSUE AND CONTINUES TO REVIEW AND ANALYZE THE DATA THE AGENCY AS REPORTED HAS OBTAINED REAMS OF DATA FROM SOME 70 SECURITIES FIRMS REGARDING THEIR POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS AND THE RELATIONSHIP IF ANY OF THOSE CONTRIBUTIONS TO THEIR UNDERWRITING BUSINESS THE SEC COMMISSIONER SAID THE AGENCY MIGHT PUBLISH A SOCALLED 21A REPORT TO SPELL OUT ITS FINDINGS AN ENFORCEMENT REPORT ISSUED UNDER SECTION 21A OF THE EXCHANGE ACT WOULD STRIVE TO MAKE CLEAR WHAT SORT OF MUNIMONEY CONDUCT IS UNACCEPTABLE UNDER FEDERAL SECURITIES LAWS IN ADDITION TO THIS GENERAL INQUIRY MR ROBERTS SAID THE SEC'S ENFORCEMENT DIVISION CONTINUES TO INVESTIGATE PARTICULAR CASES OF SUSPECTED POLITICAL INFLUENCEPEDDLING WHETHER THESE INQUIRIES RESULT IN ENFORCEMENT PROCEEDINGS REMAIN TO BE SEEN MR ROBERTS SAID IN A SPEECH PREPARED FOR DELIVERY TODAY AT A SECURITIESLAW CONFERENCE IN LOUISVILLE KEN IT IS CLEAR THOUGH THAT A SUBSTANTIAL AMOUNT OF ENFORCEMENT ATTENTION WILL BE FOCUSED ON THE MUNICIPALSECURITIES MARKET BY THE COMMISSION IN 1994 HE SAID THE SEC NOW HAS UNDER REVIEW A PROPOSED RULE FASHIONED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD DESIGNED TO QUASH THE ONCEPREVALENT MUNIMARKET PRACTICE KNOWN AS PAY TO PLAY IN WHICH SECURITIES FIRMS MADE POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS TO OBTAIN UNDERWRITING BUSINESS 9402180008 940218 LEISURE & ARTS THEATER SATIRE OF THE LONDON GALLERY SCENE BY DONALD LYONS NEW YORK IN SO FAR AS THE ART SCENE HAS BECOME A RACKET FOR THE MARKETING OF INANE FADS AND POLITICAL CORRECTNESS IT HAS NATURALLY ATTRACTED THE ATTENTION OF SATIRISTS AND POINTERSWITHALARM WITNESS MORLEY SAFER'S RECENT MILD WHISTLEBLOWING ON 60 MINUTES ABOUT SUCH PHENOMENA AS THE RAGE FOR GRAFFITI ART AND THE HOWLS ABOUT PHILISTINISM AND CENSORSHIP THAT THE PROGRAM EVOKED JOHN GUARE'S 1991 PLAY SIX DEGREES OF SEPARATION USED ASPECTS OF THE NEW YORK ART WORLD FOR BACKGROUND NOW COMES THE NEW YORK PRODUCTION AT THE MANHATTAN THEATRE CLUB OF ANOTHER 1991 PLAY TIMBERLAKE WERTENBAKER'S THREE BIRDS ALIGHTING ON A FIELD SET IN THE LONDON GALLERY SCENE MS WERTENBAKER AN AMERICAN DRAMATIST RESIDENT IN LONDON WAS MOST RECENTLY REPRESENTED HERE IN 1990 BY OUR COUNTRY'S GOOD A CLUMSY AND OBVIOUS PLAY ABOUT AUSTRALIAN CONVICTS PUTTING ON A PLAY THIS TIME OUT THE PLAYWRIGHT'S COMMAND OF HER SCENE SEEMS MORE RELAXED AND DEFT A SHINY GALLERY ALL CHROME AND GLASS IS THE SETTING OF A LOT OF THE ARTBABBLE AS TWIT DIRECTOR JEREMY IN YET ANOTHER PERFECTLY JUDGED PERFORMANCE BY THE UNDERRATED DANIEL GERROLL STRUGGLES TO BAMBOOZLE HIS GAGGLE OF SUCKERS THE MARKET IS DEAD AND HE'S TRYING TO MOVE SUCH WORKS AS AN EMPTY PIECE OF AIR SURROUNDED BY A FRAME THIS IS A DIFFICULT WORK A SLOW WORK HE PURRS TO A HESITATING BUYER WHO OPINES I FIND IT VERY INTERESTING THE EMPTINESS A WOMAN CRITIC IN LEATHER DROPS BY AND WORDS LIKE SCHNABELIZE AFTER THE PAINTER JULIAN SCHNABEL AND MEANING ROUGHLY COMMERCIALIZE FLY ABOUT SOME LADIES WHO LUNCH FORM A COMMITTEE TO RESCUE RUINED ROMANIAN CHURCHES BUT ARE PUT OFF WHEN THE ONLY ACTUAL ROMANIAN AROUND IS TOO POOR TO PROVIDE THEM WITH PRETTY SLIDES OF THE CHURCHES THIS GUY'S SUBSEQUENT ANGRY DENUNCIATION OF THE BELATED AND STILL HALFBAKED ANTICOMMUNISM OF THE LONDON INTELLIGENTSIA IS A HIGH POINT OF THE PLAY ALTHOUGH THE AUDIENCE I SAW IT WITH UNACCUSTOMED TO THAT SORT OF TRUTH RECEIVED IT IN THE SAME EMBARRASSED SILENCE AS THE CHARACTERS ON STAGE A BIT LATER A BRASSY NEWRICH TEXAS WOMAN RETURNS TO JEREMY SOME BASQUIATLIKE GRAFFITI SHE'D BOUGHT ON THE GROUNDS THAT SHE DOES NOT INTEND TO LIVE WITH FRAGMENTS OF THE ARTLESS SQUALOR SHE CAME FROM OUR SYMPATHIES ARE FINALLY WITH THIS WOMAN ALTHOUGH SHE IS MUCH TOO BROADLY CARICATURED IN THE WRITING AND ACTING DOES MS WERTENBAKER ACTUALLY KNOW ANY CONTEMPORARY TEXANS OR DID SHE JUST RENT GIANT IN THESE MOMENTS THE PLAY IS ON TARGET UNDER MAX STRAFFORDCLARK'S BREATHLESS DIRECTION IT MOVES LIKE BLACKOUT SKETCHES WITH SCENE SWITCHING FROM GALLERY TO GLYNDEBOURNE TO HARROD'S AND WITH ACTORS TOTING THE ELEGANTLY MINIMALIST PROPS ON AND OFF SALLY JACOB'S CLEVER SETS BUT INTERSECTING THIS ALMOST GENERIC ARTWORLD SATIRE IS THE NARRATIVE OF BIDDY A SOCIETY DITZ WHO'S BEEN INSTRUCTED BY HER RICH GREEK HUSBAND YOYO TO MAKE HERSELF KNOWLEDGEABLE ABOUT ART IN ORDER TO GET HIM STATUS AS A COLLECTOR AND AN INVITATION TO JOIN A FIRSTRATE CLUB YOYO A BUILDER OF HUGE APARTMENT BUILDINGS THAT HAVE EARNED PRINCE CHARLES'S SNEERS IS A SOCIAL FAILURE IN LONDON DESPITE A MILLIONPOUND GIFT TO THE OPERA BIDDY WAS AN EARLIER ENGLISH ACQUISITION OF YOYO'S SHE'S A DAFFY ARISTO WHO ARTLESSLY PUTS HER IGNORANCES AND INSECURITIES AND VULNERABILITIES ON DISPLAY IN DIALOGUE AND MONOLOGUE HARRIET WALTER PLAYS HER SUBLIMELY WITH JUST THE RIGHT COMIC EXAGGERATION ALL ELBOWS AND LOOSE HAIR AND LOVABLE FOOLISHNESS IT'S LIKE WATCHING JOYCE GRENFELL AS A WACKY NANCY MITFORD HEROINE MS WALTER IS PROBABLY BEST KNOWN HERE AS HARRIET VANE PETER WIMSEY'S PARTNER AND INAMORATA IN THE PBS DOROTHY SAYERS DRAMATIZATIONS BUT AS MS WERTENBAKER HINTS VERY EARLY ON BIDDY'S FUNCTION IN THE SCHEME OF THINGS IS TO BE REDEEMED FROM ENSLAVEMENT TO A FLAWED HUSBAND AND TO FALSE ART BY CONTACT WITH THE REAL THING ENTER STEPHEN A SCRUFFY BEARDED GROUCHY FLANNELWEARING COUNTRYDWELLING PAINTER A DH LAWRENCE KIND OF GUY CROSSED WITH THE ALAN BATES FANTASY DUDE IN AN UNMARRIED WOMAN JEREMY HAD BUMPED STEPHEN FROM THE GALLERY A WHILE BACK FOR BEING UNFASHIONABLE AND HE HAD GONE OFF IN SOCIALIST DUDGEON TO WORK ON A NEW GENRE OF PAINTING HE CALLS ABSTRACT LANDSCAPE WE GET TO SEE ONE IT LOOKS LIKE A BLOOMSBURY PAINTER'S IDEA OF CEZANNE BIDDY IS DRAWN BY A DEEP WILD INSTINCT TO STEPHEN AND IS SOON ASKING HIM IF HE'D DO HER PORTRAIT I'D HAVE TO FIND HE EXPLAINS YOUR SIGNIFICANT FORM SIGNIFICANT FORM IS A BIT OF JARGON COINED BY BLOOMSBURY AESTHETE CLIVE BELL IN 1914 INDEED STEPHEN AND HIS CANVAS AND HIS PATTER ALL SEEM WORKED UP FROM OLD BOOKS AND NOVELETTES AND BY THE PLAY'S FINAL SCENE BIDDY IS BOLDLY BARING HER BREASTS FOR STEPHEN TO PAINT AND CARESS POOR YOYO HAS MEANWHILE DIED OF WELL OF SHAME AT BEING CAUGHT SHOPLIFTING IN HARROD'S IT SEEMS THE PLAYWRIGHT DECIDED TO SUDDENLY ENLARGE YOYO INTO A FIGURE WORTHY OF TRAGIC SYMPATHY BUT IT IS TOO LITTLE AND TOO LATE AND SITS ILL WITH EVERYTHING ELSE IN THE PLAY MS WERTENBAKER IS ADEPT IN THIS PLAY AT CATCHING THE SILLY SURFACE OF A SOCIAL SCENE SHE HAS A GIFT THAT MIGHT BE CALLED COWARDIAN BUT SHE SLIPS AND CLUMSILY INTO THE CLICHES OF ROMANTIC MELODRAMA WHEN SHE TRIES TO GO FROM PROBLEM TO SOLUTION ODDLY SIX DEGREES HAD A SOMEWHAT SIMILAR AILMENT FOR IT ASKED US TO BELIEVE THAT THE EMPTY LIFE OF A GLIBLY ARTY SOCIALITE COULD BE FILLED BY THE PATHETIC AMBITIOUSNESS OF AN EXOTIC CON MAN IN GUARE AS IN WERTENBAKER THE REMEDY FOR GLEEFULLY DEPICTED PHONINESS WAS UNINTENTIONALLY AS PHONY AS THE MALADY MR LYONS IS THE THEATER CRITIC FOR THE NEW CRITERION 9402180007 940218 GRANITE TO REPORT INCREASE IN PROFIT FOR QUARTER YEAR BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL WATSONVILLE CALIF BUOYED BY GOOD WEATHER GRANITE CONSTRUCTION INC EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF BETWEEN 28 MILLION AND 3 MILLION A MORE THAN FOURFOLD INCREASE FROM THE YEAREARLIER PERIOD DAVID H WATTS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE ESTIMATED PROFIT OF 20 CENTS A SHARE TO 25 CENTS A SHARE COMPARES WITH YEAREARLIER NET INCOME OF 688000 OR SIX CENTS A SHARE MR WATTS SAID IT EXPECTS TO REPORT REVENUE INCREASED TO BETWEEN 165 MILLION AND 170 MILLION FROM 1336 MILLION RELEASE OF THE QUARTERLY RESULTS ORIGINALLY SET FOR TODAY HAS BEEN POSTPONED UNTIL WEDNESDAY BECAUSE OF ACCOUNTING CHANGES AMONG OTHER THINGS SINCE ANALYSTS FORECAST NET INCOME BETWEEN FIVE CENTS A SHARE AND 10 CENTS A SHARE MR WATTS'S ESTIMATES INDICATE THE QUARTER WAS BETTER THAN EXPECTED HE ATTRIBUTED THE STRONG YEARONYEAR GROWTH PARTLY TO VASTLY IMPROVED WEATHER CONDITIONS ACROSS GRANITE'S PRIMARY MARKETS IN CALIFORNIA AND THE SOUTHWEST THAT ALLOWED THE BUILDING CONTRACTOR TO CONDUCT ITS WORK WITHOUT EXCESSIVE INTERRUPTION MR WATTS SAID BUSINESS ALSO WAS BOOSTED BY THREE NEW HIGHWAY CONTRACTS VALUED AT NEARLY 400 MILLION WHICH HELPED INCREASE GRANITE'S YEAREND BACKLOG OF CONTRACTS TO A RECORD OF BETWEEN 650 MILLION AND 660 MILLION FROM 245 MILLION A YEAR EARLIER WE ARE PUTTING ON SOME NICE CONTRACTS MR WATTS SAID IT WILL GIVE US AN OPPORTUNITY TO IMPROVE OUR EARNINGS QUITE A BIT IN 1994 FOR 1993 MR WATTS SAID THE COMPANY EXPECTS TO REPORT NET INCOME INCREASED TO BETWEEN 4 MILLION OR 34 CENTS A SHARE AND 46 MILLION OR 39 CENTS A SHARE FROM PROFIT OF 39 MILLION OR 34 CENTS A SHARE IN 1992 EXCLUDING AN ACCOUNTING CHANGE THAT ADDED ABOUT NINE CENTS A SHARE MR WATTS SAID 1993 PROFIT WAS LOWER THAN A YEAR EARLIER AT BETWEEN 25 CENTS A SHARE AND 30 CENTS A SHARE ALTHOUGH THE COMPANY EXPECTS TO REPORT ANNUAL REVENUE ROSE TO BETWEEN 570 MILLION AND 575 MILLION FROM 1992'S REVENUE OF 5183 MILLION MR WATTS SAID PROFIT MARGINS HAVE BEEN UNDER PRESSURE BECAUSE OF INCREASED COMPETITION FROM PRIVATE CONTRACTORS WHO HAVE TURNED TO GRANITE'S MAINSTAY OF CIVIL CONSTRUCTION DURING CALIFORNIA'S LONG REALESTATE SLUMP MR WATTS SAID THE MARGIN PRESSURES ARE LIKELY TO EASE THOUGH BECAUSE AN IMPROVING ECONOMY IS CREATING MORE PRIVATEDEVELOPMENT JOBS FOR THE CURRENT YEAR MR WATTS SAID THE COMPANY DOESN'T EXPECT TO LAND AS MANY BIG JOBS AS LAST YEAR BUT HE SAID HE IS OPTIMISTIC THAT GRANITE WILL GET MORE NEW INFRASTRUCTURE BUSINESS AND HE ADDED THAT A POSSIBLE UPTURN SOON IN CALIFORNIA'S LONGDECLINING HOUSING MARKET COULD YIELD OPPORTUNITIES IN THE COMPANY'S OTHER BUSINESS OF DEVELOPING TRACT SITES WE SEE LITTLE FLICKERS OF LIGHT THAT TELL US THE BOTTOM IN CALIFORNIA'S HOUSING SLUMP HAS PASSED AND WE MAY SEE SOME UPTURN MR WATTS SAID GRANITE SHARES CLOSED AT 25 UP 125 CENTS IN TRADING ON THE NASDAQ STOCK MARKET 9402180006 940218 AUTOMOBILES BY ROBERT L SIMISON LAST YEAR'S SALES BUZZWORD ONEPRICE IS BEING REPLACED BY VALUEPRICING VALUEPRICING IS A HIGHER PRICE CLOSER TO WHAT DEALERS EXPECT TO GET FOR THE VEHICLE WITH SOME BARGAINING ROOM ONEPRICE MEANS NO HAGGLING EVEN ONEPRICE PURISTS ARE HAGGLING GENERAL MOTORS' SATURN UNIT WHICH POPULARIZED ONEPRICE SELLING IS ADVERTISING LEASE DEALS AND SUBSIDIZED INTEREST RATES IN SOME MARKETS WHICH AMOUNT TO DISCOUNTS OF THE ONEPRICE POLICY FORD MOTOR OFFERS A ONEPRICE ESCORT BUT SOME DEALERS ARE DISCOUNTING IT AUTO DEALERS AT THEIR CONVENTION EARLIER THIS MONTH IN SAN FRANCISCO SAID TOO MANY BUYERS LIKE TO HAGGLE IT WAS A FRENZY LAST YEAR SAYS LARRY D RINE WHOSE BOTTOM LINE PRICE CONCEPTS IN SKOKIE ILL SELLS ONEPRICE SALES KITS TO DEALERSHIPS THIS YEAR HIS BOOTH DREW LESS INTEREST DEALERS ARE SO ENTREPRENEURIAL MAYBE I SHOULD SAY PREDATORY THAT THEY CAN'T STAND LOSING THE POSSIBILITY OF A PERSON WALKING IN AND PAYING FULL STICKER HE SAYS AS JOE GALLANT A CAR DEALER IN BANGOR MAINE PUTS IT WHEN JEEP GRAND CHEROKEES ARE BRINGING OVER RETAIL I'M NOT GOING TO SELL THEM UNDER RETAIL NOW THAT BMW OWNS LAND ROVER WHAT'S NEXT FOR WELLHEELED TRUCK BUYERS HOW ABOUT A PICKUP WITH LEATHER SEATS THE GMC TRUCK DIVISION OF GM WILL OFFER THEM IN A BIG SIERRA EXTENDEDCAB PICKUP IN AN EFFORT TO MAKE ITS VEHICLES MORE APPEALING AS SUBSTITUTES FOR LUXURY CARS OUR ROLE IS TO BE IN THE UPSCALE TRUCK MARKET SAYS ROY S ROBERTS THE DIVISION'S GENERAL MANAGER COMING ARE OVERHAULS OF THE BOXY DASHBOARDS IN MANY GMC PICKUPS ARCHRIVAL FORD IS WORKING ON A PRODUCT TO COMPETE WITH GM'S SUBURBAN UTILITY VEHICLE WHICH SELLS TO THE 70000AYEARANDUP FAMILIES WHO USED TO BUY CADILLACS MR ROBERTS SAYS SALES GROWTH FOR SUCH UPSCALE TRUCKS COULD PUSH TOTAL TRUCK SALES IN THE US TO 50 OF ALL VEHICLES SOLD UP FROM 20 A DECADE AGO KEYS LOCKED IN THE CAR GUESS WHEN PEOPLE MOST USE THE ROADSIDEASSISTANCE PROGRAMS THAT MOST CAR COMPANIES OFFER WHEN SOMEBODY LOCKS THE KEYS IN THE CAR THE NO 2 REASON IS RUNNING OUT OF GAS ACCORDING TO JD POWER & ASSOCIATES THE MARKETRESEARCH CONCERN CHEVROLET BOASTS THAT ITS OPERATORS CAN HAVE AID ON THE SCENE IN MANY AREAS WITHIN 15 MINUTES OF A CALL VALUE IS A PACKAGE NOT JUST STYLE OR WHATEVER SAYS JIM C PERKINS CHEVY GENERAL MANAGER SOMEDAY THERE WILL BE A RANKING OF ROADSIDEASSISTANCE SERVICES SOME ROADSIDEASSISTANCE OFFERS HAVE THEIR LIMITS THOUGH AS J DAVID POWER THE PRESIDENT OF JD POWER & ASSOCIATES LEARNED THEY WOULDN'T HELP ME WITH MY BLOWOUT MR POWER RECALLS HE SAYS THE CAR MAKER WHICH HE WON'T DISCLOSE ARGUED THAT A TIRE PROBLEM WAS THE RESPONSIBILITY OF THE TIRE MAKER FOR THE RECORD CHEVY SAYS IT WOULDN'T LEAVE SOMEBODY STRANDED WITH A BLOWOUT BUT THERE LIKELY WOULD BE A SERVICE FEE THAT THE CAR OWNER WOULD THEN HAVE TO CLAIM FROM THE TIRE MAKER IF THE TIRE WERE UNDER WARRANTY AND MR POWER CONCEDES THAT ONLY 2 OF ROADSIDEASSISTANCE CALLS ARE FOR TIRE PROBLEMS IN THE OLD DAYS HAVING YOUR CAR RECALLED MEANT GETTING A LETTER IN LAWYERESE AND A HASSLE TO GET YOUR CAR FIXED NOW CAR COMPANIES ARE TRYING TO USE RECALLS TO SCORE POINTS WITH CUSTOMERS SATURN WON ADMIRATION FOR ITS STRAIGHTFORWARD HANDLING OF SOME HIGHLY PUBLICIZED RECALLS ONE OF WHICH INVOLVED REPLACEMENT OF 1836 CARS SHIPPED WITH BAD ANTIFREEZE IN A RECALL OF 352767 VEHICLES FOR A POTENTIAL ENGINEFIRE PROBLEM SOME DEALERS TREATED OWNERS TO BARBEQUES AND TRIPS TO THE MOVIES WHILE REPAIRS WERE BEING MADE OTHER CAR MAKERS ARE RUSHING TO TOP THAT JUST THIS MONTH CHRYSLER RECALLED 17800 OF ITS NEW DODGE RAM PICKUPS TO FIX A RELATIVELY MINOR SEATLATCH PROBLEM CHRYSLER IS TESTING THREE APPROACHES TO DETERMINE WHICH CUSTOMERS LIKE BEST IN ONE CUSTOMERS SIMPLY DROP OFF THE VEHICLES FOR REPAIRS IN A SECOND CUSTOMERS GET FREEBIES SUCH AS A CARWASH AND A LOANER IN THE THIRD SOMEBODY FROM A DODGE DEALERSHIP PICKS UP AND RETURNS THE TRUCK CHEVROLET TELEPHONED ALL 46000 OWNERS OF ITS NEW S10 PICKUP WHICH IS BEING RECALLED TO FIX FUEL TANKS THAT COULD CAUSE A GASOLINE SPILL IN A CRASH WHEN YOU FIRST REACH PEOPLE THEY'RE A LITTLE BOWLED OVER TO HEAR WHO YOU ARE AND WHAT YOU'RE CALLING ABOUT SAYS MR PERKINS THE CHEVY GENERAL MANAGER CUSTOMERS ARE OFFERED A LOANER VEHICLE FOR UP TO FOUR DAYS WHILE REPAIRS ARE MADE A FULL TANK OF GAS AND A CARWASH LEASE OR BUY USED OR NEW NOW THAT FORD IS MOVING BIGTIME INTO LEASING USED CARS THE BIG DEBATE IS WHETHER IT'S A GOOD IDEA EITHER FOR CUSTOMERS OR FOR CAR COMPANIES FORD ARGUES THAT IT'S A GOOD DEAL FOR CAR BUYERS BECAUSE THEY WILL BE ABLE TO LEASE A WELLMAINTAINED TWOYEAROLD CAR WITH A COMPLETE WARRANTY FOR 100 A MONTH LESS THAN THEY'D PAY TO LEASE A NEW CAR THAT SHOULD BE PARTICULARLY ATTRACTIVE TO THOSE WHO WANT TO RELEASE THEIR CAR FORD THINKS USEDCAR LEASING WILL HELP ENSURE CUSTOMER LOYALTY IT'S GOING TO TAKE OFF AND GROW LIKE ANYTHING PREDICTS A GM OFFICIAL ADDING THAT FORD'S PROGRAM IS A VERY LOGICAL THING TO DO ROBERT J EATON CHRYSLER CHAIRMAN EXPRESSES LITTLE INTEREST IN LEASING USED CARS OUR WHOLE OBJECTIVE IS TO SELL THE CAR AND BE DONE WITH IT HE SAYS THIS IS A CYCLICAL INDUSTRY AND IN A DOWN MARKET YOU MAY HAVE A REAL PROBLEM BUT CARS RETURNED AFTER A TWOYEAR LEASE TEND TO BE IN THE WORST SHAPE SAYS ONE AUTO EXECUTIVE THE TWOYEAR LESSEES ARE NOT MAKING ANY COMMITMENT TO A CAR WHATSOEVER THE EXECUTIVE SAYS 9402180005 940218 DANGER ZONE TRADE WAR UNLIKELY BUT SHIFTING RELATIONS DO INCREASE THE RISK INTERNAL POLITICAL PRESSURES IN BOTH US AND JAPAN MAKE RETREAT DIFFICULT HOW THINGS COULD GO WRONG BY BOB DAVIS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL THE USJAPAN TRADE CONFLICT SHOULD IT SPIRAL OUT OF CONTROL WOULD BE THE FIRST SHOWDOWN BETWEEN ECONOMIC SUPERPOWERS IN THE POSTCOLD WAR ERA BOTH SIDES SAY THEY WANT TO KEEP TODAY'S BRINKMANSHIP FROM BECOMING TOMORROW'S TRADE WAR INDEED IN THE PAST FEW DAYS OFFICIALS FROM BOTH SIDES HAVE BEEN TRYING TO COME UP WITH WAYS TO DEFUSE THE TENSIONS MOREOVER THE US AND JAPAN HAVE SQUARED OFF IN THE PAST AND MANAGED TO WORK THINGS OUT NEVERTHELESS THERE IS SOMETHING WORRISOME IN THE CURRENT TENSION BETWEEN THE WORLD'S TWO BIGGEST ECONOMIES THE COLLAPSE OF THE SOVIET MENACE REMOVED ONE OF THE ELEMENTS THAT LINKED THE US AND JAPAN AND CONTAINED FRICTIONS OVER ECONOMIC MATTERS JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA IS POLITICALLY WEAK AND TOKYO'S TRADE TEAM IS LED BY BUREAUCRATS READY TO STAND UP TO THE US THE CLINTON TEAM BRISTLING WITH FORMER BUSINESS PEOPLE WHO TAKE A HARDLINE VIEW TOWARD JAPAN IS DETERMINED TO MAKE ITS MARK BY PRYING OPEN LONGCLOSED JAPANESE MARKETS SOMETIMES YOU HAVE TO GO TO THE BRINK TO BE CREDIBLE SAYS JULIUS KATZ WHO RETIRED LAST YEAR AS WASHINGTON'S MOST EXPERIENCED TRADE NEGOTIATOR BUT WARS START BY PEOPLE MISCALCULATING AND BACKING THEMSELVES INTO CORNERS IN THE STANDOFF WITH JAPAN EIGHT MONTHS OF EARNEST NEGOTIATING ENDED IN A BITTER STALEMATE WITH BOTH SIDES ISSUING THREATS JAPAN AND THE US CAN'T EVEN HAVE A COMMON PERCEPTION OF THE CAUSES OF THE BILATERAL TRADE IMBALANCE SAYS KOICHIRO MATSUURA JAPAN'S CHIEF TRADE DIPLOMAT HE SAYS THE FIGHT WITH THE US LEAVES HIM DEPRESSED AND MISERABLE WASHINGTON LAUNCHED ITS TRADE OFFENSIVE THIS WEEK CONFIDENT THAT THE US WHOSE ECONOMY IS EXPANDING COULD BETTER WITHSTAND A CONFRONTATION THAN JAPAN WHOSE ECONOMY IS IN THE DUMPS IN THE PAST THE US HAS WORRIED THAT OFFENDING JAPAN COULD PROMPT THE ASIAN POWERHOUSE TO DUMP ITS VAST HOLDINGS OF US TREASURY SECURITIES THESE DAYS THE STRAPPED JAPANESE BANKS BUY LESS THAN 10 OF THE SECURITIES OFFERED AT A TYPICAL AUCTION DOWN FROM A PEAK OF ABOUT 25 IN 1988 A PROLONGED FIGHT BETWEEN THE US AND JAPAN COULD SADDLE CONSUMERS AND BUSINESSES IN BOTH COUNTRIES AND PROBABLY ELSEWHERE WITH HIGHER PRICES AND SLOWER GROWTH EVEN NOW THE TENSION THAT HAS FOLLOWED THE BREAKDOWN OF LAST WEEK'S TRADE TALKS REVEALS A SCARY LEVEL OF MISUNDERSTANDING BETWEEN WASHINGTON AND TOKYO THAT HAS DAMAGED RELATIONS AND MAY LEAVE A LASTING LEGACY US AND JAPANESE LEADERS SAY THEY ARE AWARE OF THE RISKS ESPECIALLY OF HARMING THE BROADER DIPLOMATIC AND SECURITY TIES OBVIOUSLY THINGS ARE INTERRELATED IF WE'RE NOT CAREFUL ABOUT THEM WALTER F MONDALE US AMBASSADOR TO JAPAN SAID TODAY IN TOKYO THAT'S WHAT MAKES THIS DISPUTE SERIOUS BUT FOR EACH LEADER BACKING DOWN IS FRAUGHT WITH DIFFICULTIES THAT ONLY INCREASES THE OPPORTUNITIES FOR MISSTEPS AND MISCALCULATIONS A FURTHER SURGE IN THE YEN COULD DEEPEN JAPAN'S RECESSION AND PULL DOWN FINANCIAL MARKETS ON BOTH SIDES OF THE PACIFIC US TRADE SANCTIONS COULD BE MET HEADON BY JAPANESE CURBS AND TRADE WOULD SPIRAL DOWNWARD COMPANIES IN THE US COULD TAKE MATTERS INTO THEIR OWN HANDS BY FILING ANTIDUMPING SUITS AGAINST JAPAN THAT DRIVE PRICES HIGHER NATIONALISM COULD RISE IN BOTH NATIONS IN THE US A JAPANBASHING CONGRESS COULD PASS LEGISLATION LIMITING IMPORTS IN JAPAN A POWERFUL BUREAUCRACY MORE WORRIED ABOUT PROTECTING ITS TURF THAN PRESERVING WORLD ECONOMIC HARMONY COULD IMPOSE ITS WILL ON A WEAK POLITICAL LEADERSHIP BOTH SIDES ARE ACTIVELY TRYING TO HEAD OFF SUCH SCENARIOS EFFORTS ARE NEEDED TO REMEDY DAMAGE WHICH WAS I THINK INEVITABLY CAUSED BY DISAGREEMENT KUNIHIKO SAITO JAPAN'S VICE FOREIGN MINISTER AND THE MAN CHARGED WITH TRYING TO PUT THINGS BACK TOGETHER AGAIN SAID IN AN INTERVIEW YESTERDAY I HOPE IT IS NOT INSURMOUNTABLE DAMAGE AND I BELIEVE IT IS NOT BUT I THINK MUTUAL DISTRUST WAS CREATED JUST AS THE US COMMERCE DEPARTMENT ANNOUNCED YESTERDAY THAT THE TRADE DEFICIT WITH JAPAN HIT 5932 BILLION LAST YEAR ITS HIGHEST LEVEL EVER PRIME MINISTER HOSOKAWA DIRECTED HIS GOVERNMENT TO DRAFT A VOLUNTARY PLAN AIMED AT CUTTING JAPAN'S RECORD TRADE SURPLUS ALTHOUGH HE CONTINUED TO RESIST THE US DEMAND FOR NUMERICAL IMPORT GOALS HE VOWED TO COME UP WITH A PROGRAM TO ACCELERATE DEREGULATION PROMOTE NEW POLICIES TO BOOST IMPORTS AND FOREIGN INVESTMENT IN JAPAN ENFORCE ANTITRUST LAWS MORE VIGOROUSLY AND MAKE GOVERNMENT PROCUREMENT PROCEDURES MORE OPEN THOSE POLICIES NOT ONLY WILL MAKE JAPAN'S ECONOMY ACCESSIBLE TO OUTSIDERS BUT ALSO WILL BENEFIT THE JAPANESE ECONOMY AND THE JAPANESE PEOPLE MR SAITO SAID TOKYO ALSO MAY DISPATCH A SPECIAL ENVOY TO WASHINGTON TO DISCUSS THE PLAN THOSE MOVES FOLLOW AN UNPUBLICIZED MEETING TUESDAY NIGHT NEAR THE WHITE HOUSE BETWEEN FIVE TOP JAPANESE BUSINESS EXECUTIVE AND FIVE TOP CLINTON ECONOMIC AIDES WE WANTED THE SENIOR BUSINESSMEN GOING BACK TO TOKYO WITH THE MESSAGE THAT WE DON'T HAVE ANY INTENTION OF SPARKING AN ACTIONREACTION CONFRONTATION SAYS A US OFFICIAL THE US PARTICIPANTS INCLUDED WHITE HOUSE NATIONAL ECONOMIC COUNCIL DIRECTOR ROBERT RUBIN AND HIS DEPUTY BOWMAN CUTTER TREASURY DEPUTY SECRETARY ROGER ALTMAN WHITE HOUSE COUNSELOR DAVID GERGEN AND WHITE HOUSE ECONOMIST ALAN BLINDER NO ONE THINKS THESE VARIOUS MOVES WILL END THE FUNDAMENTAL DISAGREEMENTS THAT CLOUD THE USJAPANESE RELATIONSHIP ANY TIME SOON BY THE SAME TOKEN A WORSENING OF RELATIONS INTO A TRUE TRADE WAR WOULDN'T ERUPT IN A FEW WEEKS EITHER SUCH A CONFRONTATION WOULD TAKE MONTHS TO BUILD SINCE SANCTIONS TAKE THAT LONG TO PLAY OUT BUT HERE IS HOW OVER TIME THINGS COULD GO BADLY WRONG OVER THE NEXT SIX MONTHS THE US AND JAPAN WILL BE FACED WITH A SERIES OF DECISIONS THAT IF HANDLED IMPROPERLY COULD LEAD TO A LASTING RIFT NEXT MONTH THE US IS SCHEDULED TO DECIDE ON HOW TO RESPOND TO US INDUSTRY COMPLAINTS OVER SEMICONDUCTORS AND SUPERCOMPUTERS AND THE FOLLOWING MONTH JAPANESE PROCUREMENT OF TELECOMMUNICATIONS AND MEDICAL EQUIPMENT ALREADY SAYS ALAN WOLFF A LAWYER FOR THE SEMICONDUCTOR INDUSTRY THE ADMINISTRATION HAS ASKED WHETHER HIS CLIENTS FAVOR SANCTIONS OVER JAPAN'S ALLEGED FAILURE TO LIVE UP TO A SEMICONDUCTOR AGREEMENT UNDER THAT DEAL JAPAN PLEDGED TO BUY 20 OF ITS SEMICONDUCTORS FROM FOREIGN FIRMS BUT AFTER HITTING THAT NUMBER ONCE IN 1992 TOKYO HASN'T MATCHED IT AGAIN THE US IS SLIDING TOWARD POTENTIAL RETALIATION MR WOLFF SAYS ADDING THAT THE SEMICONDUCTOR INDUSTRY ASSOCIATION HASN'T YET TAKEN A POSITION ON SANCTIONS TRADE SANCTIONS WOULD COME IN THE FORM OF PROHIBITIVELY HIGH TARIFFS PLACED ON JAPANESE IMPORTS EARLIER THIS WEEK US TRADE REPRESENTATIVE MICKEY KANTOR THREATENED TO LEVY ABOUT 300 MILLION IN SANCTIONS OVER JAPAN'S FAILURE TO GIVE MOTOROLA INC FAIR ACCESS TO THE TOKYOAREA CELLULARTELEPHONE MARKET GARY HUFBAUER A TRADE SPECIALIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A THINK TANK IN WASHINGTON CALCULATES THAT IF SANCTION FOLLOWS SANCTION AND TOPS THE 500 MILLION MARK JAPAN WOULD FIND THE PRESSURE INTOLERABLE AND BE FORCED TO RETALIATE LEADING TO CALLS IN THE US TO REDOUBLE THE PRESSURE JAPAN SAYS IT WOULDN'T RETALIATE IMMEDIATELY BUT INSTEAD WOULD LIKELY COMPLAIN ABOUT THE US AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH ADJUDICATES TRADE DISPUTES BUT HAS NO POWER TO ENFORCE ITS RULINGS IF THE AMERICANS REFUSED TO BACK DOWN JAPANESE OFFICIALS SAY THEY MIGHT THEN STRIKE BACK SEPARATELY US COMPANIES COULD USE THE TRADE RIFT TO TAKE MATTERS INTO THEIR OWN HANDS MR WOLFF WHO USED TO BE A US TRADE NEGOTIATOR SEES IT PLAYING OUT THIS WAY THE STRONGER YEN COULD FORCE JAPANESE COMPANIES TO RAISE PRICES IN THE US BUT SOME TO MAINTAIN MARKET SHARE WOULD AVOID DOING SO THEN US COMPANIES HURT BY JAPANESE COMPETITION WOULD FILE ANTIDUMPING ACTIONS THE ANTIDUMPING LAWS WHICH ARE SUPPOSED TO PROTECT US COMPANIES FROM UNFAIR PRICING INVARIABLY PUSH FOREIGN COMPETITORS TO INCREASE PRICES RATHER THAN FACE LENGTHY SHOWDOWNS WITH THE US TRADE BUREAUCRACY THE EFFECT ON JAPANESE COMPANIES IS AS POWERFUL AS A TRADE SANCTION THEIR PRICES GO UP AND MARKET SHARE FALLS MR WOLFF SAYS HE EXPECTS ELECTRONICS AND AUTO COMPANIES AMONG OTHERS TO CLOSELY TRACK JAPANESE PRICING PATTERNS IN THE NEXT FEW MONTHS AND TO CONSIDER BRINGING ANTIDUMPING COMPLAINTS AS WHITE HOUSE OFFICIALS RUN THROUGH THE WAR GAMES THEY CONCEDE THAT WHEN IT COMES TO A POSSIBLE PROLIFERATION OF CORPORATE DUMPING ACTIONS THE ADMINISTRATION DOESN'T CONTROL IT OFFICIALS SAY NOR DOES THE ADMINISTRATION CONTROL THE NEXT MOVES BY A CONGRESS THAT HAS BECOME INCREASINGLY HOSTILE TO JAPAN LATER THIS MONTH HOUSE MAJORITY LEADER RICHARD GEPHARDT PLANS TO INTRODUCE LEGISLATION THAT WOULD EMPOWER THE COMMERCE DEPARTMENT TO SET GOALS FOR HOW MANY AMERICAN GOODS AND SERVICES THE JAPANESE SHOULD IMPORT FAILURE TO MEET THOSE GOALS COULD LEAD TO SANCTIONS REP GEPHARDT NOT ONLY PLANS TO INCLUDE SECTORS INVOLVED IN THE FAILED FRAMEWORK NEGOTIATIONSAUTOS AUTO PARTS INSURANCE MEDICAL EQUIPMENT AND TELECOMMUNICATIONS BUT ALSO ANY SECTOR DEEMED A CRITICAL TECHNOLOGY DURING THE TALKS US NEGOTIATORS PRIVATELY DISPARAGED THE GEPHARDT APPROACH AS TOO RESTRICTIVE AND TOO FRIGHTENING TO THE JAPANESE BUT SINCE THEN SEVERAL HAVE SAID THEY WOULDN'T DISCOURAGE THE EFFORT AND EVEN BEFORE THEN THE CLINTON ADMINISTRATION SAID IT BACKED ANOTHER TOUGH NEW TRADE LAW WORKING ITS WAY THROUGH CONGRESS THAT WOULD LET THE US BLOCK THE EXPANSION PLANS OF JAPANESE FINANCIALSERVICES COMPANIES IF JAPAN DIDN'T LIBERALIZE ITS MARKETS FOR FOREIGN FINANCIAL CONCERNS THE CURRENT TRADE BATTLE FOLLOWS A DECADE OF ONAGAIN OFFAGAIN TRADE FEUDS BETWEEN THE TWO COUNTRIES IN 1989 PRESIDENT BUSH INVOKED THE SUPER 301 LAW THREATENING SANCTIONS OVER JAPAN'S BARRIERS TO MARKETS FOR SATELLITES SUPERCOMPUTERS AND WOOD PRODUCTS LIKE THE CLINTON ADMINISTRATION MR HOSOKAWA DOESN'T HAVE COMPLETE CONTROL OVER THE PROCESS EITHER THE IDEAS MR HOSOKAWA OUTLINED AT HIS EMERGENCY MEETING AREN'T NEW JAPANESE LEADERS HAVE MADE SIMILAR PROMISES SINCE THE MID1980S BUT THEY HAD LITTLE IMPACT BECAUSE POWERFUL INTERESTS WATERED THEM DOWN SO FAR MR HOSOKAWA'S DEREGULATION EFFORTS HAVE DRAWN MUCH DERISION FOR FOCUSING ON TINY ITEMS LIKE THE RULES FOR EMERGENCY LIGHTING AT MOVIE THEATERS I DON'T KNOW WHETHER MR HOSOKAWA WILL BE ABLE TO SHOW A GOOD ENOUGH POLICY ALTERNATIVE IN SUCH A SHORT PERIOD OF TIME FRETS IWAO NAKATANI AN ADVISER AND A PROFESSOR AT HITOTSUBASHI UNIVERSITY WITHOUT POLITICAL LEADERSHIP THE BUREAUCRATS ARE ABLE TO DO WHAT THEY WANT EVEN NOW JAPANESE OFFICIALS HINT THEIR NEW PLAN WILL BE CONTINGENT ON WASHINGTON EASING ITS PRESSURE THERE IS A FEELING AMONG US THAT WE HAVE TO SEE THE OUTCOME OF THE CONSIDERATION WITHIN THE US ADMINISTRATION OF THE POSSIBLE RETALIATORY OR SANCTION MEASURES MR SAITO SAID INDEED INSTEAD OF APPEASING WASHINGTON SOME AMERICANS IN TOKYO HARDENED BY YEARS OF JOUSTING WITH JAPAN'S SHADOWY SYSTEM OF INFORMAL RULES AND POWERS SAY THE JAPANESE GOVERNMENT AND BUSINESSES HAVE COUNTLESS SUBTLE WAYS TO STRIKE BACK YOU DON'T HAVE LAWS HERE THAT REQUIRE THE GOVERNMENT TO MAINTAIN AN ADMINISTRATIVE RECORD AS TO WHY THEY DENIED SOMETHING SAYS JOHN STERN HEAD OF THE AMERICAN ELECTRONICS ASSOCIATION'S TOKYO OFFICE IN PAST TRADE DISPUTES JAPAN HAS KEPT A TIGHT LID ON COMPUTER MEMORY CHIPS DRIVING UP THE PRICES AND POCKETING 4 BILLION IN EXTRA PROFITS ACCORDING TO STUDIES BY US TRADE EXPERTS JAPAN NOW CONTROLS THE WORLD'S SUPPLY OF ADVANCED COLOR FLAT SCREENS COMPONENTS ESSENTIAL FOR PORTABLE COMPUTERS AND OTHER DEVICES STIRRING FEARS OF US VULNERABILITY TO SIMILAR HARDBALL TACTICS MOST ANALYSTS HOWEVER DOUBT JAPAN'S ABILITY TO WITHHOLD TECHNOLOGIES BESIDES JAPAN'S RECESSIONBATTERED ELECTRONICS COMPANIES AREN'T LIKELY TO TURN AWAY ANY CUSTOMERS THESE DAYS MEANWHILE THE US IS WEIGHING SIMILAR TYPES OF HARASSMENT INCLUDING THE DRAWING OUT OF INSPECTIONS OF JAPANESE IMPORTS AND MAKING OTHER REGULATORY CHANGES THAT PUT TOKYO AT A DISADVANTAGE MAYBE WE'RE ALREADY IN A TRADE WAR SAYS CLYDE PRESTOWITZ A FORMER TRADE NEGOTIATOR WHO ADVISES THE ADMINISTRATION WE'RE RESPONDING IN A DIFFERENT WAY TO A WAR WE'VE BEEN INVOLVED IN FOR A LONG TIME THE BEST REASON TO EXPECT THAT THE TWO SIDES WILL FIND A WAY OUT OF THE CURRENT IMPASSE IS THE DEGREE OF INTERCONNECTEDNESS BETWEEN THE TWO ECONOMIES TAKE FOR EXAMPLE MOTOROLA AND JAPAN'S IDO CORP THE TWO COMPANIES IN THE CENTER OF CELLULAR PHONE DISPUTE IN TERMS OF OUR SELLER AND VENDOR RELATIONSHIP THERE'S ALMOST NO PROBLEM BETWEEN THE COMPANIES SAYS IDO'S CHIEF EXECUTIVE TAKEO TSUKADA TEXAS INSTRUMENTS INC AND HITACHI LTD ARE JOINTLY DEVELOPING THE NEXT GENERATION OF MEMORY CHIPS THE PRESSURE WOULD HAVE TO BE ENORMOUS ON HITACHI FOR THEM TO ABANDON THEIR INVESTMENT AND THAT COMMITMENT SAYS NORMAN NEUREITER DIRECTOR OF TI'S JAPANESE DIVISION IT'S NOT LIKELY WE'D DO IT ON OUR OWN MANY FORMS OF RETALIATION BY THE US WOULD HARM AMERICAN WORKERS AND COMMUNITIES AS MUCH AS JAPANESE DURING ONE WHITE HOUSE STRATEGY SESSION THE PARTICIPANTS TALKED ABOUT AND REJECTED THE IDEA OF LIMITING FREETRADE ZONES USED BY JAPANESE AUTO MAKERS TO IMPORT PRODUCTS DUTYFREE THAT ARE USED IN AUTO MANUFACTURING THE LOSERS THE ADVISERS REALIZED WOULD BE TOWNS IN THE SOUTH THAT SET UP THE TRADE ZONES TO ATTRACT NEEDED INVESTMENT THAT'S WHY MANY ON BOTH SIDES OF THE PACIFIC BELIEVE THAT COOLER HEADS WILL PREVAIL WE CAN'T HURT THE OTHER WITHOUT SHOOTING OURSELVES SAYS KENICHI OHMAE DIRECTOR OF MCKINSEY & CO JAPANESE BUSINESSES HAVE WATCHED THE YEN'S RECENT RISE WITH WORRY SINCE IT MAKES THEIR PRODUCTS MORE EXPENSIVE IN THE US UNDER A SIGN AT A DOWNTOWN TOKYO BANK THAT SHOWS THE YENDOLLAR RELATIONSHIP BUSINESSMAN KENJI YOKOTA SAYS EVEN NOW THE ECONOMY IS BAD THIS WILL MAKE IT WORSE TO A LARGE EXTENT THE WHITE HOUSE IS COUNTING ON JAPANESE BUSINESSES TO PRESS THEIR GOVERNMENT TO MAKE CONCESSIONS THE BUREAUCRATS CHARGED WITH NEGOTIATIONS DURING THE FRAMEWORK TALKS ARE IMPERVIOUS TO US PRESSURE THE CLINTON ADMINISTRATION FEELS MANY US BUSINESSES ALSO ARE URGING THE ADMINISTRATION TO BE CAUTIOUS BUSINESSMEN IN BOTH COUNTRIES WILL GO TO THEIR GOVERNMENTS AND SAY THERE MUST BE A SOLUTION BELIEVES WILLIAM E FRANKLIN HEAD OF JAPAN OPERATIONS FOR WEYERHAEUSER CO THE US PAPER AND LUMBER CONCERN SOME TRADE EXPERTS HOPE THE USJAPAN IMPASSE WILL BE EASED BY GATT THE 45YEAROLD TRADE REFEREE LIKE THE UNITED NATIONS GATT IS ABLE TO FOCUS WORLD OPINION AND PERHAPS DEFUSE EMOTIONALISM IT IS A PLACE WHERE NATIONS CAN BACK OFF FROM EXTREME POSITIONS AND SAY THAT THEY DID SO TO HONOR INTERNATIONAL COMMITMENTS MR KATZ THE FORMER TRADE NEGOTIATOR FIGURES THE US COULD BRING A CASE THAT WOULD HIGHLIGHT THE CLOSED NATURE OF THE JAPANESE SYSTEM IN THE GLASS INDUSTRY FOR INSTANCE THREE JAPANESE COMPANIES HAVE DIVIDED THE LOCAL MARKET FOR YEARS TRADE EXPERTS SAY BLOCKING IMPORTS OTHER NATIONS COULD JOIN THE CASE AS WELL AND THE US COULD QUIETLY SOFTEN ITS DEMANDS IN OTHER AREAS DURING THE REAGAN YEARS MR KATZ SAYS THE US WAS READY TO BRING A GATT CASE JAPAN AGREED TO A BROADER SET OF TALKS INSTEAD MOST AGREE THAT RELIANCE ON THE GATT IS BETTER THAN AN ALLOUT TRADE FIGHT THAT THE US MIGHT NOT WIN MR BLINDER THE WHITE HOUSE ECONOMIST ARGUED IN A 1987 BOOK THAT IT WOULD BE IMPRUDENT TO BET THAT THE UNITED STATES WOULD BE A BIG WINNER FROM A POLICY OF INTERNATIONAL BRINKSMANSHIP ON TRADE POLICY I STILL BELIEVE WHAT I WROTE THEN MR BLINDER SAYS BUT I'VE COME TO HAVE A GREATER APPRECIATION FOR A TRADE POLICY FOCUSED ON RESULTS VISAVIS JAPAN 9402180004 940218 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES RINKYDINK MEDIA CIRCUS GLIDES OVER SERIOUS ISSUE BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL HAMAR A MAN'S GOTTA DO WHAT A MAN'S GOTTA DO SO YESTERDAY I PUT ON A RED NOSE AND FLOPPY SHOES AND JOINED THE CIRCUS THE MEDIA CIRCUS THAT IS THE OCCASION WAS THE MEETING THE FIRST COINCIDENCE OF TONYA AND NANCY NO LAST NAMES NECESSARY ON NORWEGIAN ICE THE PLACE WAS THE SMALL PRACTICE RINK ALONGSIDE THE STADIUM WHERE THE WOMEN'S SINGLES FIGURESKATING COMPETITION WILL BE HELD BEGINNING WEDNESDAY NIGHT I GOT THERE 2 1/2 HOURS BEFORE THE PRACTICE'S 125 PM STARTING TIME AND THE PLACE WAS ALREADY HALF FULL AT ABOUT 250 BODIES BY NOON IT WAS SRO IN THE PRESS SECTION OR RATHER OSR BECAUSE EVERYBODY WAS STANDING TO BEGIN WITH WHAT HAPPENED WAS THIS NANCY ARRIVED ON TIME AND TONYA WAS ABOUT FIVE MINUTES LATE THEY SHARED THE ICE WITH TWO OTHER SKATERS NANCY WORE A BRIDALWHITE SKATING COSTUME THE SAME ONE SHE WORE THE JANUARY DAY HER KNEE WAS CLUBBED IN DETROIT TONYA WORE A FLOWERED DRESS OVER BLACK TIGHTS BOTH SKATED MOSTLY IN THEIR OWN ORBITS TAKING FREQUENT BREAKS TO CONFER WITH COACHES STATIONED BEHIND THE BOARDS ABOUT 20 YARDS OOPS METERS APART NANCY SMILED MORE THAN TONYA WHO SPENT A LOT OF TIME COUGHING AND DRAWING ON AN INHALATOR SHE HAS ASTHMA THEY NEITHER TOUCHED NOR SPOKE AND DIDN'T VISIBLY RECOGNIZE THE OTHER'S PRESENCE NANCY LEFT FIRST TONYA ABOUT FIVE MINUTES LATER THEY PRACTICED AGAIN IN THE MAIN ARENA AN HOUR AND A HALF LATER AND IT WENT ABOUT THE SAME I'M GLAD TO REPORT THAT MY COLLEAGUES BEHAVED WELL THEIR ONLY TRANSGRESSION BEING AN OCCASIONAL RULEBREAKING CAMERA FLASH WHILE THE SKATERS WHIRLED SOME REPORTERS SHOUTED QUESTIONS AT TONYA AS SHE LEFT BUT SHE RESPONDED ONLY WITH A JAUNTY WAVE AND THUMBSUP SIGN AS CIRCUSES WENT IT WAS ABOUT AS DULL AS THEY COME I COULD HAVE LEFT THE NOSE AND SHOES AT HOME I KNOW THAT SUCH AN ASSURANCE WILL NOT CALM THE TUTTUTTING THAT HAS FOLLOWED THE FULLCOURTPRESS COVERAGE OF SKATEGATE AMONG THE TUTTUTTERS WAS ONE PATRICK D GILROY THE OREGON JUDGE WHO BROKERED THE LEGAL DEAL THAT CLEARED TONYA'S PATH TO OLYMPIA HIS ORDER URGED THE NEWS MEDIA TO REMOVE THEIR FOCUS FROM THESE EVENTS THE TONYANANCY HUBBUB IN ORDER THAT APPROPRIATE ATTENTION MAY BE GIVEN THE GAMES THEMSELVES HA IF WE NEWS TYPES SHOULD APOLOGIZE FOR PURSUING TONYANANCY THEN OUR READERS SHOULD APOLOGIZE FOR GOBBLING UP EVERY MORSEL WE FEED THEM THIS STORY HAS IT ALL VIOLENCE GREED BETRAYAL AND SCANTILY CLAD YOUNG WOMEN IT'S A TABLOID'S DREAM RANKING BEHIND ONLY DWARF RAPES NUN ESCAPES IN UFO IN HEADLINE VALHALLA THERE WAS A NOVEL BY THAT TITLE MAKE NO MISTAKE THOUGH THIS IS AT BASE A SERIOUS MATTER ONE THAT BROUGHT CRIME RIGHT INTO THE SPORTS ARENA AND WE WILL HAVE TO DEAL WITH ITS OUTCOME BOTH INSIDE AND OUTSIDE THE WORLD OF FUN AND GAMES THE QUESTION IT RAISES IS WHETHER THERE'S A DIFFERENCE BETWEEN BREAKING THE LAW AND BREAKING THE RULES IT CAN BE ARGUED THAT THE ATTACK ON NANCY BY A MAN EMPLOYED BY TONYA'S LIVEIN EXHUSBAND AND BODYGUARD AND ABOUT WHICH SHE HAS ADMITTED KNOWING AFTERWARD BUT NOT TELLING DIDN'T QUALIFY AS MUCH OF A CRIME ALL NANCY SUFFERED WAS A BRUISE AND SHE WAS BACK ON SKATES IN A COUPLE OF WEEKS INDEED AS THE COMMERCIAL OFFERS FLOOD IN THERE'S NO DOUBT THE INCIDENT ENHANCED HER CAREER BUT ASSAULT AND BATTERY ISN'T AN EXACT SCIENCE AND IF THE BLOW HAD LANDED AN INCH OR TWO IN ANOTHER DIRECTION SHE MIGHT HAVE BEEN INJURED FAR MORE SERIOUSLY ONE WONDERS HOW MUCH SYMPATHY THERE'D BE FOR TONYA IF NANCY HAD BEEN HURT TOO BADLY TO COMPETE HERE WHILE TONYA DID IT ALSO CAN BE ARGUED THAT FIGURE SKATING IS REALLY SHOW BIZ A STRENUOUS ENTERTAINMENT LIKE BALLET OR CIRCUS ACROBATICS THAT'S A SPORT ONLY BECAUSE SOMEONE DECIDED TO KEEP SCORE AND THUS ITS PARTICIPANTS SHOULDN'T BE HELD TO SPORTS' STRICTER STANDARDS I THINK YOU CAN AGREE WITH THE FIRST PART OF THAT PROPOSITION WITHOUT BUYING THE SECOND PART THE ATTACK ON NANCY BOTH BROKE THE LAW AND ALTERED THE US FIGURE SKATING CHAMPIONSHIPS THE OLYMPICQUALIFYING EVENT IN A WAY THAT MADE IT EASIER FOR TONYA TO MAKE THE US TEAM THE LAWBREAKING PART WILL OR SHOULD BE PLAYED OUT IN CRIMINAL COURT WITH ALL LEGAL PROTECTIONS DUE THE DEFENDANTS THE US OLYMPIC COMMITTEE WAS TO HAVE HEARD ARGUMENTS ON THE RULEBREAKING PART BUT BACKED DOWN IN THE FACE OF A 25 MILLION LAWSUIT BY TONYA HOW COULD SHE CLAIM DAMAGES UNTIL SHE WAS INJURED ANYWAY AND AGREED TO DELAY ITS HEARING UNTIL AFTER THE GAMES GIVING HER WHAT SHE WANTED AND THAT ISN'T RIGHT ATHLETES CAN BE SUSPENDED FROM COMPETITION FOR ALL SORTS OF OFFENSES THAT DON'T INVOLVE CRIMINAL PROSECUTION THESE INCLUDE DRUGTAKING HANGING OUT WITH QUESTIONABLE CHARACTERS MISSING PRACTICE OR CURFEW OR FOR STUDENTATHLETES EVEN CUTTING CLASS THE STANDARDS OF PROOF FOR SUCH OFFENSES NEEDN'T MATCH THOSE OF A COURT OF LAW THE CLOSEST RECENT PARALLEL TO L'AFFAIRE TONYA WAS PETE ROSE'S RUNIN WITH MAJOR LEAGUE BASEBALL MR ROSE WAS BANNED FROM THE GAME NOT FOR TAX EVASION THE OFFENSE FOR WHICH HE WENT TO PRISON BUT FOR GAMBLING ON SPORTS WHICH VIOLATED BASEBALL'S RULES IT WAS HIS CRIME AGAINST HIS SPORT THAT HAS KEPT HIM OUT OF THE GAME'S HALL OF FAME AND I THINK RIGHTLY TONYA MAY OR MAY NOT HAVE TO FACE CRIMINALCHARGE MUSIC IN THE ATTACK ON NANCY BUT THE MAIMING OF HER CHIEF RIVAL BY THOSE NEAR AND DEAR TO HER AT THE SITE OF A MAJOR COMPETITION BREAKS THE RULES OF ANY SPORT I'VE EVER HEARD OF IT OUGHT TO COST TONYA AT LEAST A GAME EVEN A VERY BIG ONE NO CIRCUS MEDIA OR OLYMPIC SHOULD HAVE DISTRACTED ATTENTION FROM THAT 9402180003 940218 BOARD OF CONTRIBUTORS HEAVY READING A BUDGET REVIEW BY HERBERT STEIN THE ECONOMICS AND POLITICS OF PRESIDENT CLINTON'S NEW BUDGET HAVE BEEN MUCH ANALYZED BUT THE BUDGET IS MORE THAN A PROGRAM IT IS ALSO A BOOK A WORK OF LITERATURE IT DESERVES TO BE APPRAISED AS SUCH FOR ITS STYLE AND EFFECTIVENESS IN FULFILLING THE AUTHORS' OBJECTIVES AND MEETING THE READERS' EXPECTATIONS THAT IS WHAT I PROPOSE TO DO HERE NOBODY NOT BEING UNUSUALLY MORBID EXPECTS TO GET MUCH PLEASURE OUT OF READING THE BUDGET WHAT THE READER CAN EXPECT IS TO OBTAIN USEFUL INFORMATION WITH AS LITTLE INTELLECTUAL EMOTIONAL AND PHYSICAL STRAIN AS POSSIBLE ON THE SIDE OF PHYSICAL STRAIN BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN DESERVE A BIG ROUND OF APPLAUSE FOR UNBUNDLING DARMAN'S DISASTER AS BUDGET DIRECTOR FOR PRESIDENT BUSH RICHARD DARMAN HAD THE CONCEIT OF PACKAGING ALL PARTS OF THE BUDGET INTO ONE ENORMOUS VOLUME WEIGHING SIX POUNDS AND TWO OUNCES WHICH WAS MUCH TOO MUCH FOR THE AVERAGE READER TO HANDLE MOST PEOPLE WHO READ BUDGETS ARE NOT BIG IN THE BENCHPRESSING DEPARTMENT THE NEW TEAM HAS RETURNED TO THE PREVIOUS PRACTICE OF PUBLISHING THE BUDGET IN FOUR SEPARATE VOLUMES ONE WITH ALL THE DETAILS IS STILL PRETTY HEAVY BUT IT IS OF INTEREST ONLY TO LOBBYISTS AND CONGRESSIONAL STAFFERS THE OTHER THREE ARE ALL OF MANAGEABLE SIZE ONE OF THE THREE CONTAINING THE HISTORICAL TABLES IS INVALUABLE TO ALL STUDENTS OF THE BUDGET A SECOND VOLUME CALLED ANALYTICAL PERSPECTIVES IS NOW MORE IMPORTANT THAN EVER BECAUSE IT CONTAINS SOME OF THE INFORMATION THAT PROPERLY IN MY OPINION USED TO BE INCLUDED IN THE MAIN VOLUME IT ALSO INCLUDES SOME INNOVATIVE WAYS OF LOOKING AT THE BUDGET AND ALTHOUGH I CANNOT FOLLOW OR SWALLOW ALL OF THEM I BELIEVE THEY SHOULD BE ENCOURAGED I CONCENTRATE HERE HOWEVER ON THE VOLUME CALLED THE BUDGET ONE CAN SEE AS ONE WOULD EXPECT FROM THE STAFF OF THE OFFICE OF MANAGEMENT AND BUDGET THAT A GREAT DEAL OF HONEST INTELLIGENT WORK HAS BEEN DONE FOR THIS VOLUME BUT THE NET RESULT IS DISTRESSING BLATANTLY POLITICAL AND CONFUSING ALL PRESIDENTS ARE POLITICIANS AND THEY ARE ALL MORE OR LESS CAMPAIGNING ALL THE TIME BUT THERE ARE DIFFERENT DEGREES AND FORMS SUITABLE FOR DIFFERENT OCCASIONS A PRESIDENT DOES NOT BEHAVE THE SAME WAY AT THE FUNERAL OF A FOREIGN HEAD OF STATE AS HE DOES AT A PARTY FUNDRAISER IN MAKING HIS BUDGET REPORT THE PRESIDENT IS TELLING US WHAT HE DID WITH THE LAST TRILLIONANDAHALF OF OUR DOLLARS AND WHAT HE PROPOSES TO DO WITH THE NEXT TRILLIONANDAHALF HIS APPROPRIATE POSTURE SHOULD BE SOBRIETY FACTUALITY AND HUMILITY HE SHOULD SEEK TO MERIT TRUST THE NEW BUDGET IS NOT LIKE THAT THE BUDGET MESSAGE OF THE PRESIDENT THE PART HE SIGNS HIMSELF IS HIS 1992 STUMP SPEECH CONSISTING OF EXTRAVAGANT DESCRIPTION OF THE FAILURES OF HIS TWO PREDECESSORS AND EXTRAVAGANT PROMISES OF WHAT HE WILL DO FOR US PADDED OUT WITH EXTRAVAGANT CLAIMS FOR HIS ACHIEVEMENTS IN THE FIRST YEAR OF OFFICE A DECENT RESPECT FOR THE INTELLIGENCE OF HIS READERS WOULD HAVE REQUIRED HIM TO REFER TO THE FACT THAT HE INHERITED A COUNTRY FREE FROM THE COLD WAR WITH SUBDUED INFLATION THE ACCUMULATED LIABILITIES OF THE SAVINGSANDLOAN CRISIS PAID OFF AND RECOVERY UNDER WAY FROM A MILD RECESSION RECOGNIZING THIS WOULD NOT HAVE DIMINISHED THE READER'S APPRECIATION OF THE BIG RESPONSIBILITIES FACING MR CLINTON BUT IT WOULD HAVE DONE MUCH TO ENHANCE THE CREDIBILITY OF WHAT HE HAS TO TELL US THE FOLLOWING CHAPTERS WHERE WE STARTED AND WHAT WE HAVE ACCOMPLISHED WE MEANING FRIENDS OF BILL NOT WE THE PEOPLE ARE MORE OF THE SAME HERE THE ARGUMENT IS MADE MORE DRAMATIC BY CHARTS WITH BASES AND TIME PERIODS WELL CHOSEN TO THE AUTHORS' PURPOSE THE ANNUAL REPORT OF THE COUNCIL OF ECONOMIC ADVISERS IS MUCH MORE OBJECTIVE IN DISPLAYING THE SAME INFORMATION THROUGHOUT THE TEXT THERE ARE SCATTERED AT THE HEADS OF CHAPTERS AND SECTIONS LITTLE EPIGRAPHS PRINTED IN ITALICS WITHIN BOXES THESE ARE APPARENTLY INTENDED TO INSPIRE THE READER WITH SOME RESPECT FOR WHAT IS TO FOLLOW AND WHAT ARE THE SOURCES OF THESE NUGGETS OF WISDOM MOSES ADAM SMITH THOMAS JEFFERSON NO SURPRISE THE AUTHOR OF 23 OF THE 27 EPIGRAPHS IS NONE OTHER THAN PRESIDENT CLINTON HIMSELF YOU WOULD THINK HE IS CHAIRMAN MAO ONE OF THE CLINTON EPIGRAPHS IS THIS THE BEST WAY TO SERVE DISTRESSED COMMUNITIES IN URBAN AND RURAL AMERICA IS THROUGH A COMPREHENSIVE COORDINATED AND INTEGRATED APPROACH THAT COMBINES BOTTOMUP INITIATIVES AND PRIVATE SECTOR INNOVATION WITH RESPONSIVE FEDERALSTATE SUPPORT A LITTLE LONG FOR A FORTUNE COOKIE OF THE FOUR GEMS THAT ARE NOT BY THE PRESIDENT TWO ARE BY VICE PRESIDENT GORE ONE IS FROM THE NATIONAL PERFORMANCE REVIEW AND ONE WHICH HAPPENS TO BE THE PITHIEST IS BY THE COMMISSIONER OF THE SSA WHICH I SUPPOSE MEANS THE SOCIAL SECURITY ADMINISTRATION THE TEXT IS FILLED WITH A KIND OF JARGON THAT I CANNOT PLACE EXACTLY BUT THAT SOUNDS TO ME LIKE JUNIOR HONORSTUDENT MANAGERIAL TECHNOCRATESE IT DELIGHTS IN WORDS LIKE REINVENTING COORDINATION INTEGRATION FLEXIBILITY USERFRIENDLY STRATEGIC AND VISION WHAT THIS SEEMS TO MEAN IS THAT THIS TEAM IS GOING TO DO THINGS BETTER THAN ITS PREDECESSORS DID BUT EVERY NEW TEAM THOUGHT THAT AND WHEN I LOOK AT THIS TEAM I WONDER WHO IS GOING TO ACHIEVE THESE MARVELS OF MANAGEMENT AT ONE POINT SPEAKING OF EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES THEIR CAPITAL LETTERS THE BUDGET SAYS THE COMPETITIVE APPLICATION PROCESS WILL ENCOURAGE CREATIVE PLANNING BY REQUIRING EACH APPLICANT TO DEVELOP AND SUBMIT A STRATEGIC VISION FOR CHANGE AND THE VISION THIS CONJURES UP FOR ME IS OF FIVE POLS AT THE BACK OF SOME SALOON DREAMING UP A STRATEGIC VISION FOR CHANGE SO THEY CAN GET A GRANT FROM THE FEDS THIS MAY SEEM AN ODDLY HEATED REACTION TO WHAT IS TRADITIONALLY A DULL GOVERNMENT REPORT BUT THE EXCESS OF PROPAGANDA OF JARGON AND OF CULT OF PERSONALITY PROVOKES THIS REACTION AND MORE IMPORTANT DIVERTS THE READER FROM WHAT SHOULD BE THE SUBSTANCE OF THE MESSAGE IN THE OLDEN PREDARMAN DAYS THE DISCUSSION OF BUDGET EXPENDITURES WAS ORGANIZED INTO 20 MAJOR FUNCTIONS WITH THEIR SUBFUNCTIONS THESE CATEGORIES WERE MUTUALLY EXCLUSIVE AND EXHAUSTIVE THAT IS EVERY EXPENDITURE BELONGED IN ONLY ONE FUNCTION OR SUBFUNCTION AND WHEN ALL THE FUNCTIONS WERE ADDED UP THEIR SUM EQUALED TOTAL EXPENDITURES THESE ASSIGNMENTS OF EXPENDITURES TO FUNCTIONAL CATEGORIES WERE TO SOME DEGREE ARBITRARY BUT THEY WERE AN ACCOMMODATION TO THE LIMITATIONS OF THE HUMAN MIND WHICH CANNOT THINK OF EVERYTHING AT ONCE TODAY THE DISCUSSION OF EXPENDITURES IS GROUPED INTO FOUR MAJOR THEMES WITH SUBTHEMES NOWHERE IN THE BUDGET AS FAR AS I CAN SEE IS THERE A TABLE OF TOTAL EXPENDITURES DIVIDED INTO THESE FOUR CATEGORIES THE SAME PROGRAMS CROP UP IN VARIOUS PARTS OF THE DISCUSSION HEAD START BEING A PARTICULAR FAVORITE IS PARTICULARLY UBIQUITOUS SOME OF THE TABLES DO NOT SEEM TO ADD UP AT ALL ONE HAS ITS TOTAL IN THE MIDDLE FOLLOWED BY ODDSANDENDS THAT ARE PRESUMABLY PARTS OF THE ITEMS ABOVE BUT NOT AN EXHAUSTIVE LIST OF THE ITEMS ABOVE SOME HAVE MYSTERIOUS HEADINGS LIKE PUBLIC/PRIVATE CASH AND NONCASH VALUE OF CRADA INVESTMENTS SOME OF THE TABLES ARE LABELED HIGHLIGHTS OF SOMETHING OR OTHER MEANING THAT THEY ARE SOME UNKNOWN PART OF A TOTAL I SUPPOSE I AM BETRAYING A BOOKKEEPER'S MENTALITY LACKING STRATEGIC VISION BUT SOME BOOKKEEPING DOESN'T SEEM OUT OF PLACE IN A BUDGET AND I AM BECOMING ALLERGIC TO VISION FOR AMERICA IT SOUNDS TO ME LIKE THE VISION OF A DEPARTMENT STORE SANTA CLAUS PROMISING THE KIDDIES TOYS THAT HE WILL NOT PAY FOR THE FEDERAL BUDGET IS INESCAPABLY VERY COMPLICATED ONE HAS THE FEELING THAT THE AUTHORS OF THE BUDGET HAVE DECIDED TO ABANDON THE OLD SIMPLIFICATIONS BUT HAVE NOT YET SYNTHESIZED THEIR STORY INTO A NEW INTELLIGIBLE SIMPLIFICATION BUT MEANWHILE THE WHOLE THING IS A FRUSTRATION FOR THE READER AT LEAST FOR ONE WHO LIKES TO SEE THINGS ADD UP AS ANOTHER GREAT BUDGETER RONALD REAGAN USED TO SAY THERE MUST BE A PONY IN THERE SOMEPLACE BUT THE HEAVY POLITICAL SPIN PUT ON THE PRESENTATION DISCOURAGES AT LEAST THIS READER FROM TRYING TO FIND IT A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW AND THE AUTHOR OF THE UPDATED EDITION OF PRESIDENTIAL ECONOMICS AEI 9402180002 940218 GOVERNMENT SEEKS REVISIONS IN CONTRACT THAT LORAL IS ACQUIRING WITH IBM UNIT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL OFFICIALS ARE TRYING TO CHANGE KEY TERMS OF A 46 BILLION CONTRACT FOR AIRTRAFFICCONTROL MODERNIZATION THAT LORAL CORP IS ACQUIRING BY BUYING AN INTERNATIONAL BUSINESS MACHINES CORP UNIT THE CONTRACT HANDLED BY IBM'S FEDERAL SYSTEMS DIVISION HAS BEEN PLAGUED BY DELAYS AND COST OVERRUNS TRANSPORTATION DEPARTMENT OFFICIALS SAY THEY WANT TO ADD FINANCIAL PENALTIES IF LORAL DOESN'T MEET BUDGET AND SCHEDULE TARGETS THIS MATTER IS UNDERGOING INTENSE SCRUTINY AND THERE ARE SERIOUS PROBLEMS WITH IT AND WE WANT TO MAKE SURE THAT IN ANY NEW CONTRACTUAL RELATIONSHIP OUR CONCERNS ARE ADDRESSED SAID STEPHEN KAPLAN THE TOP LAWYER FOR THE TRANSPORTATION DEPARTMENT LORAL NEW YORK ANNOUNCED ITS 157 BILLION ACQUISITION OF FEDERAL SYSTEMS DIVISION ON DEC 13 THE SAME DAY THE FEDERAL AVIATION ADMINISTRATION ANNOUNCED THAT THE AIRTRAFFIC OVERHAUL WOULD PRODUCE ANOTHER 12 BILLION IN UNFORESEEN COSTS OF THAT 700 MILLION WAS ATTRIBUTED TO IBM'S PIECE OF THE PROJECT THE FAA HAS BEEN REVIEWING ITS RELATIONSHIP WITH CONTRACTORS EVEN AS IBM AND LORAL PUSH TO CLOSE THE DEAL IT IS UNLIKELY THE REVIEW WILL THREATEN THE DEAL BUT IT COULD INCREASE LORAL'S COSTS OR RISKS LORAL'S ACQUISITION OF THE IBM DIVISION IS EXPECTED TO PASS THE GOVERNMENT'S ANTITRUST REVIEW BUT FEDERAL OFFICIALS ALSO MUST APPROVE THE TRANSFER OF INDIVIDUAL CONTRACTS TO THE NEW COMPANY UNDER A LEGAL PROCESS CALLED NOVATION THE DEFENSE DEPARTMENT WHICH PROVIDES THE BULK OF FEDERAL SYSTEMS' BUSINESS WILL TAKE THE LEAD ON THAT REVIEW IT HAS AGREED TO PURSUE THE AIRTRAFFIC CONTRACT CHANGES ACCORDING TO TRANSPORTATION DEPARTMENT OFFICIALS THEY SAID THE REVIEW COULD TAKE SEVERAL MONTHS THE DEFENSE DEPARTMENT IS UNLIKELY TO DO ANYTHING THAT WOULD THREATEN THE DEAL GIVEN THE PENTAGON'S EFFORTS TO ENCOURAGE CONSOLIDATION AMONG DEFENSE CONTRACTORS AND IT WOULD BE UNUSUAL FOR THE PENTAGON TO USE NOVATION TO FORCE MAJOR CHANGES IN A CONTRACT STILL GOVERNMENT OFFICIALS COULD WELL USE THE PROCESS TO SORT OUT UNCERTAINTIES OVER WHO IS LIABLE FOR THE 700 MILLION IN UNEXPECTED COSTS LORAL SAID IN DECEMBER THE QUESTION OF NEW COSTS IS OPEN TO INTERPRETATION YESTERDAY A LORAL SPOKESMAN SAID ONLY THAT THE COMPANY IS WORKING CLOSELY WITH FAA AND WE ARE PREPARED TO BRING ALL THE NECESSARY RESOURCES TO ADD VALUE TO THIS IMPORTANT PROGRAM THE SPOKESMAN SAID THAT IT IS PREMATURE TO ADDRESS CONTRACT PARTICULARS AT THIS TIME AND WE HAVE HAD NO SUCH DISCUSSIONS LORAL IS A MAKER OF MILITARY ELECTRONICS SYSTEMS THE 17 BILLION PROGRAM TO OVERHAUL THE NATION'S AIRTRAFFICCONTROL SYSTEM HAS ENCOUNTERED SO MANY PROBLEMS THAT THE CLINTON ADMINISTRATION IS NOW PUSHING TO TAKE THE PROJECT OUT OF THE FAA'S HANDS AND CREATE A NEW GOVERNMENT CORPORATION TO RUN IT IBM'S PORTION OF THE PROJECT WHICH IS INTENDED TO BRING NEW COMPUTER WORKSTATIONS TO 20 CONTROL CENTERS NATIONWIDE HAS BEEN THE FOCUS OF MUCH OF THE CRITICISM TRANSPORTATION DEPARTMENT OFFICIALS SAY THE CURRENT CONTRACT GIVES IBM BONUSES FOR COMPLETING PORTIONS ON TIME BUT FEW PENALTIES FOR FAILING TO DO SO IN DECEMBER 1992 THE FAA THREATENED TO WITHHOLD PAYMENTS IN ORDER TO FORCE IBM TO SPEED UP THE PROJECT IBM ARMONK NY HAS SAID THAT UNTIL RECENTLY IT DIDN'T DEVOTE ENOUGH TOP MANAGERS TO THE PROJECT WHICH PRODUCES 10 OF FEDERAL SYSTEMS' REVENUES TRANSPORTATION DEPARTMENT OFFICIALS SAY THEY ARE SEEKING ASSURANCES FROM LORAL THAT ITS SENIOR MANAGEMENT WILL KEEP A CLOSE EYE ON THE PROJECT JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9402180001 940218 WHO'S NEWS DOMINION RESOURCES INC DOMINION RESOURCES INC RICHMOND VA JUDITH B SACK 46 YEARS OLD WAS NAMED A DIRECTOR OF THIS UTILITY HOLDING COMPANY FILLING A VACANCY ON THE 12MEMBER BOARD MS SACK IS A GLOBAL ELECTRIC UTILITY STRATEGIST FOR MORGAN STANLEY & CO 9402180104 940113 ENTERPRISE FOCUS ON FRANCHISING TACO BELL FRANCHISEE IS ALLOWED TO PUSH SPYING CHARGE BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DID TACO BELL USE A SPY TO MONITOR A PESKY FRANCHISEE THIS WEEK A FEDERAL JUDGE DECIDED TO LET A DISGRUNTLED FRANCHISEE PURSUE AN UNUSUAL ALLEGATION IN HIS LAWSUIT AGAINST THE IRVINE CALIF UNIT OF PEPSICO INC THE SUIT CHARGED THAT TACO BELL HAD PLANTED A SPY WHO SECRETLY USED A HIDDEN MICROPHONE TO TAPE THE FRANCHISEE'S CONVERSATIONS TACO BELL HAS YET TO ANSWER THE SUBSTANCE OF THE SPYING CHARGES IN COURT THOUGH IT UNSUCCESSFULLY TRIED TO DISMISS THEM ON TECHNICAL GROUNDS FRANCHISEE RICHARD L COHN WHO RUNS NINE TACO BELL UNITS IN THE CHICAGO SUBURBS BROUGHT SUIT IN CHICAGO IN 1992 AND ADDED THE SPYING ALLEGATION LAST AUGUST IN THE SUIT MR COHN ALSO MAINTAINED THAT TACO BELL BROKE PROMISES TO LET HIM OPEN TWO MORE RESTAURANTS THE SUIT CHARGED THAT THE FRANCHISER DECIDED TO DRIVE MR COHN OUT OF THE TACO BELL SYSTEM ABOUT THREE YEARS AGO THE SUIT ALLEGED THAT TACO BELL OFFICIALS THOUGHT MR COHN ASKED TOO MANY QUESTIONS ABOUT ITS PRICING AND SUPPLIERS AND WANTED TO FORM A DISSIDENT GROUP OF TACO BELL FRANCHISEES SUCH A GROUP EVENTUALLY FORMED AND MR COHN JOINED PAUL K VICKREY AN ATTORNEY FOR MR COHN SAYS HE AIMS TO SHOW THAT TACO BELL UNDERMINED ITS FRANCHISEE PARTLY BY USING THE ALLEGED SPY DIRK SMITH AT TACO BELL'S SUGGESTION MR COHN HIRED MR SMITH THEN A TACO BELL MARKET MANAGER IN HOUSTON TO OVERSEE HIS OPERATIONS ACCORDING TO THE SUIT DURING HIS SIXMONTH TENURE IN 1991 MR SMITH ALLEGEDLY SPIED ON HIS BOSS AND REPORTED HIS FINDINGS TO TACO BELL OFFICIALS THE SUIT CLAIMED ABSOLUTELY LUDICROUS I NEVER DID ANY SPYING FOR TACO BELL WHATSOEVER RETORTS MR SMITH NOW VICE PRESIDENT OF SIZZLIN' QUICK HAMBURGERS INC AN AUSTIN TEXAS FRANCHISER MR SMITH SAYS HE DID RECORD CONVERSATIONS WITHOUT MR COHN'S KNOWLEDGE IN ORDER TO PREPARE A POSSIBLE LAWSUIT AGAINST MR COHN'S COMPANY RLC ENTERPRISES INC MR SMITH NEVER SUED IN THIS WEEK'S RULING MR COHN WAS REBUFFED ON AN ENCROACHMENT CHARGE THAT HAD SPARKED HIS LAWSUIT HOWEVER HE MAINTAINED THAT TACO BELL HAD VIOLATED A CONTRACT BY PLANNING A FRANCHISEROWNED RESTAURANT IN VERNON HILLS WITHIN TWO MILES OF MR COHN'S MOST PROFITABLE UNIT IN MUNDELEIN ILL ACCORDING TO THE COHN SUIT TACO BELL IGNORED A SOCALLED IMPACT STUDY PREDICTING THAT THE PLANNED UNIT WOULD CANNIBALIZE BETWEEN 27 AND 40 OF THE EXISTING UNIT'S SALES JUDGE JOHN A NORDBERG DISMISSED THAT CHARGE RULING THAT TACO BELL'S AGREEMENTS WITH FRANCHISEES PERMIT ENCROACHMENT WITH ENCROACHMENT CASES ON THE RISE THE JUDGE'S RULING WILL INTEREST MANY FRANCHISERS WORRIED ABOUT HOW TO WORD CONTRACTS STANLEY J ADELMAN A TACO BELL ATTORNEY DECLINED TO DISCUSS THE COHN CASE TACO BELL OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT STATE WATCHDOGS ON FRANCHISING WILL GET TO KEEP THEIR JOBS AFTER ALL AN ARCANE ISSUE CALLED PREEMPTION HAS FINALLY DIED AT THE FEDERAL TRADE COMMISSION STATE FRANCHISE REGULATORS LONG FRANCHISEES' GREATEST SOURCE OF PROTECTION WILL KEEP THEIR POWER AT LEAST FOR NOW LAST MONTH THE FTC ENDED A FOURYEAR LOOK AT WHETHER THE FEDERAL GOVERNMENT SHOULD PREEMPT STATE RULES GOVERNING FRANCHISERS' DISCLOSURES TO PROSPECTIVE FRANCHISEES THE FTC PRESENTLY OVERSEES FEDERAL DISCLOSURE RULES FOR FRANCHISERS BUT STATES MAY SET THEIR OWN TOUGHER STANDARDSAND SOME DO SO IF FEDERAL RULES WERE PREEMPTIVE THEY ALONE WOULD APPLY THAT PROSPECT ALARMS SOME FRANCHISEE ADVOCATES AS THE LAWS EXIST NOW FRANCHISEES DO BETTER UNDER THE STATE LAWS SO FEDERAL PREEMPTION WOULD NOT MAKE SENSE SAYS MARIO L HERMAN A WASHINGTON DC LAWYER FOR FRANCHISEES NEARLY FIVE YEARS AGO TERRY CALVANI THEN AN FTC COMMISSIONER STUNNED STATE REGULATORS BY DECLARING THAT THE FTC MIGHT PREEMPT THEIR ROLE MR CALVANI NOW A PRIVATE ATTORNEY IN WASHINGTON SAYS HE HAD HOPED TO END A CRAZY QUILT OF REGULATIONS THAT COSTS FRANCHISERS PLENTY AND MAKES IT MUCH HARDER FOR NEWCOMERS TO ENTER THE MARKET THE FTC INITIATED ITS PROCEEDING IN 1989 LAST MONTH AGENCY OFFICIALS SAID THEY COULDN'T JUSTIFY PREEMPTION BECAUSE THEY DIDN'T SEE SUFFICIENT EVIDENCE OF COSTLY CONFLICTS OR INCONSISTENCIES AMONG VARIOUS STATES' RULES POLITICS ALSO PLAYED A ROLE WHILE INITIALLY VOWING TO WORK HARD FOR PREEMPTION THE INTERNATIONAL FRANCHISE ASSOCIATION LATER TOOK A LUKEWARM STANCE INDIVIDUALS CLOSE TO THE FRANCHISER GROUP SAY IT FEARED ALIENATING STATE REGULATORS THE IFA'S SPOKESMAN ON THIS ISSUE COULDN'T BE REACHED BUT LAST YEAR THE IFA RENEWED ITS SUPPORT FOR PREEMPTION IN A LETTER TO REP JOHN J LAFALCE D NY THE LEADING ADVOCATE OF TOUGHER FRANCHISING LAWS MR LAFALCE HAS INDICATED HE MIGHT CHANGE HIS OPPOSITION TO PREEMPTION IF FRANCHISERS SUPPORTED HIS PROPOSED CURBS ON THEM NOW IF THERE EVER IS TO BE PREEMPTION IT WILL BE THE RESULT OF NEW FEDERAL LEGISLATION SAYS NEIL A SIMON A WASHINGTON LAWYER WELFARE RECIPIENTS MAY SOON BECOME WORLDWIDE REFINISHING FRANCHISEES WORLDWIDE REFINISHING SERVICES INC A UNIT OF ENTREPRENEUR DON DWYER'S DWYER GROUP IN WACO TEXAS SAYS IT HAS OFFERED TO WAIVE FRANCHISEES' 24200 ENTRY COSTS FOR CERTAIN RESIDENTS TRYING TO WORK THEIR WAY OUT OF PUBLICHOUSING PROJECTS THE COMPANY SAYS IT HAS ALREADY LINED UP FIVE SUCH FRANCHISEES IN NEW YORK CITY AND PLANS TO TRAIN THEM NEXT MONTH IF THE CITY LETS THEM THE NEW FRANCHISEES INITIALLY WOULD SELL THEIR SERVICES MOSTLY REFINISHING BATHTUBS TO HOUSING PROJECTS WHERE THEY NOW LIVE ONCE THEY DEVELOPED OUTSIDE CUSTOMERS THE FRANCHISEES COULD MOVE OUT AND MAKE ROOM FOR THEIR REPLACEMENTS IN THE PROJECTS IF SOMEONE WANTS TO BE OFF THE WELFARE ROLLS AND IS WILLING TO WORK HARD THIS IS A VEHICLE FOR THEM TO USE SAYS CHARLES H WALLIS EXECUTIVE VICE PRESIDENT OF WORLDWIDE THE PLAN IS PART OF NEW YORK'S BROADER EFFORT TO ENCOURAGE PUBLICHOUSING RESIDENTS TO START SMALL BUSINESSES SAYS MARCIA MELENDEZ A BUSINESSDEVELOPMENT OFFICIAL FOR THE CITY'S HOUSING AUTHORITY SHE SAYS THE WORLDWIDE PLAN SHOULD WIN FINAL APPROVAL SOON WORLDWIDE SAYS IT AIMS TO MAKE SIMILAR ARRANGEMENTS THIS YEAR IN WASHINGTON BOSTON AND OTHER MAJOR CITIES BRIEFS THE INTERNATIONAL FRANCHISE ASSOCIATION REFLECTING US FRANCHISERS' RISING INTEREST IN FOREIGN MARKETS SAYS IT WILL SPONSOR 11 INTERNATIONAL CONFERENCES THIS YEAR UP FROM EIGHT IN 1993 FRANCHISING LAWYERS SAY NEW LEGISLATIVE BATTLES OVER FRANCHISEE RIGHTS LOOM THIS YEAR IN CALIFORNIA CONNECTICUT FLORIDA MAINE AND MARYLAND SEE RELATED LETTER LETTERS TO THE EDITOR TACO BELL PROSPERS WITHOUT ESPIONAGE WSJ FEB 18 1994 9401130117 YY94 MM02