WALL STREET'S BIG WINNER IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC SHAPES UP AS SMITH BARNEY SHEARSON INC WHICH STANDS TO REAP FEES OF BETWEEN 25 MILLION AND 30 MILLION SMITH BARNEY'S 125 MILLION FEE FOR ADVISING VIACOM INC ON THE ORIGINAL 82 BILLION FRIENDLY PARAMOUNTVIACOM MERGER LAST SEPTEMBER WAS THREATENED BY THE HOSTILE TAKEOVER BID BY QVC NETWORK INC BUT THE TRAVELERS INC UNIT AND ITS NEW CHIEF EXECUTIVE OFFICER FORMER MORGAN STANLEY & CO MERGERS ACE ROBERT GREENHILL BOUNCED BACK BY NOT ONLY WINNING THE PARAMOUNT BATTLE BUT ALSO BY ADVISING VIACOM ON AN ADDITIONAL 84 BILLION FRIENDLY TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORP NEGOTIATED IN JANUARY ALTHOUGH FEES FOR THE BLOCKBUSTER DEAL HAVEN'T BEEN DISCLOSED SMITH BARNEY IS EXPECTED TO RECEIVE ROUGHLY THE SAME SIZE FEE FOR THAT DEAL AS THE PARAMOUNT TRANSACTION PLUS AN ADDITIONAL FEE FOR NEGOTIATING A 12 BILLION INVESTMENT IN VIACOM BY NYNEX CORP BLOCKBUSTER WAS REPRESENTED BY MERRILL LYNCH & CO AND VIACOM WAS ALSO ADVISED ON THE PARAMOUNT DEAL BY BEAR STEARNS & CO AND GOLDMAN SACHS & CO LAZARD FRERES & CO ALSO STANDS TO RECEIVE 125 MILLION FOR ADVISING PARAMOUNT ALTHOUGH QVC HAD TO SPEND 32 MILLION ON LEGAL FEES AND BANK COMMITMENT FEES ITS INVESTMENT BANKER ALLEN & CO SAID IT WOULDN'T BILL QVC FOR ANY FEES IF QVC DIDN'T ACQUIRE PARAMOUNT THE FIRM OF WASSERSTEIN PERELLA & CO WHICH ONCE DOMINATED THE MERGER RANKINGS IN THE LATE 1980S MISSED OUT ON COUNTING THE PARAMOUNT DEAL IN ITS 1994 TOTALS BECAUSE IT WAS ADVISING BELLSOUTH CORP ON ITS INVESTMENT IN QVC 9402160011 940216 BUSINESS BRIEF SOUTHWEST AIRLINES EXPANDED SERVICE IS PLANNED IN WEST AND FOR EAST COAST SOUTHWEST AIRLINES WILL ADD FOUR NEW CITIES TO ITS ROUTE MAP NEXT QUARTER ALL IN THE WESTERN HALF OF THE NATION AND PLANS TO BOOST SERVICE ON THE EAST COAST LATER THIS YEAR BY ADDING GATES IN BALTIMORE IN A MEETING WITH WALL STREET ANALYSTS IN NEW YORK YESTERDAY SOUTHWEST CHAIRMAN HERBERT D KELLEHER SAID THE DALLASBASED CARRIER WILL START FLYING TO AIRPORTS IN PORTLAND ORE ORANGE COUNTY CALIF SEATTLE AND SPOKANE WASH DURING THE SECOND QUARTER EACH OF THOSE CITIES IS CURRENTLY SERVED BY MORRIS AIR CORP WHICH SOUTHWEST BOUGHT LAST YEAR SINCE THE MORRIS PURCHASE COMPLETED DEC 31 SOUTHWEST AND MORRIS HAVE BEEN TRYING TO COMBINE THEIR ROUTE STRUCTURES IN ADDITION TO TAKING OVER THOSE FOUR WESTERN CITIES FROM MORRIS SOUTHWEST PLANS TO STOP MORRIS SERVICE TO PALM SPRINGS CALIF AND EUGENE ORE OTHER MORRIS CITIES COULD BE ELIMINATED MR KELLEHER SAID THAT THE SUCCESS OF SOUTHWEST'S SERVICE TO THE EAST COAST SINCE LAST SEPTEMBER IS PROMPTING THE CARRIER TO SEEK ADDITIONAL GATES AT BALTIMORE/WASHINGTON AIRPORT WHICH COULD HEAT UP AN ALREADY COMPETITIVE FARE WAR BY YEAR'S END SOUTHWEST WILL HAVE EIGHT GATES UP FROM THE CURRENT TWO 9402160010 940216 WELLS FARGO SERIES A PREFERRED SAN FRANCISCO WELLS FARGO & CO SAID IT WILL REDEEM MARCH 21 ALL OF ITS SERIES A PREFERRED STOCK AT 50 A SHARE PLUS ACCRUED DIVIDENDS OF 667 CENTS A SHARE 9402160009 940216 WHO'S NEWS MARKS & SPENCER PLC MARKS & SPENCER PLC LONDON CHRIS LITTMODEN 50 YEARS OLD WAS NAMED DIRECTOR OF NORTH AMERICAN OPERATIONS AT THIS APPAREL HOME FURNISHINGS AND FOODPRODUCTS RETAILER SUCCEEDING PAUL SMITH 53 WHO BECOMES A DIRECTOR AT THE COMPANY'S FAR EAST OPERATIONS IN HONG KONG MR LITTMODEN WAS FORMERLY DIRECTOR OF FINANCIAL CONTROL IN LONDON 9402160008 940216 MARKETING BRIEF NOTED MAGAZINES NEWS CORP SAID CATHERINE VISCARDI ADVERTISING DIRECTOR OF NEW YORK MAGAZINE WILL BECOME PUBLISHER OF MIRABELLA MAGAZINE EFFECTIVE FEB 28 MS VISCARDI 40 WILL SUCCEED REBECCA DARWIN WHO MIRABELLA SAID HAS LEFT THE COMPANY MS DARWIN ALSO 40 JOINED MIRABELLA AS PUBLISHER IN 1991 9402160007 940216 INTERNATIONAL HANSON REPORTS DROP OF 27 IN PRETAX PROFIT FOR FISCAL 1ST QUARTER SPECIAL TO THE WALL STREET JOURNAL LONDON ANGLOAMERICAN INDUSTRIAL CONGLOMERATE HANSON PLC SAID ITS FISCAL FIRSTQUARTER PRETAX PROFIT FELL 27 TO 173 MILLION 257 MILLION FROM 236 MILLION HANSON SAID THE RESULTS WERE AFFECTED BY 67 MILLION IN COSTS RELATED TO THE STRIKE AT ITS PEABODY COAL MINES IN THE US AS WELL AS INCREASED INTEREST COSTS SALES IN THE PERIOD ENDED DEC 31 GREW 25 TO 289 BILLION FROM 230 BILLION EXCLUDING THE COST OF THE STRIKE EXCEPTIONAL ITEMS AND INTEREST HANSON WOULD HAVE REPORTED PROFIT OF 230 MILLION UP FROM 187 MILLION A YEAR EARLIER THAT INCLUDES A 25 MILLION FIRSTTIME CONTRIBUTION FROM QUANTUM CHEMICAL CORP WHICH HANSON ACQUIRED LAST YEAR HANSON SAID THAT INCREASED NET INTEREST COSTS MOSTLY WERE DUE TO THE NARROWING OF STERLINGDOLLAR INTEREST SPREADS SHORTER DEPOSIT MATURITIES AND ACQUISITIONS INCLUDING QUANTUM TOTALING 29 BILLION THE COMPANY CONTINUED TO REDUCE DEBT WITH PROCEEDS FROM THE COMPLETION OF CERTAIN DISPOSALS AND HAS ANNOUNCED OTHERS INCLUDING THE SEPARATE FLOTATIONS IN THE US AND UK OF THE TWO BEAZER HOMES BUSINESSES 9402160006 940216 CD YIELDS WERE MIXED IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MIXED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 282 FROM 277 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ALSO ROSE A BIT TO 454 FROM 449 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 317 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 444 FROM 464 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CLIMBED TO 294 FROM 288 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 481 FROM 475 ACCORDING TO BANXQUOTE 9402160005 940216 GM TO ADD TRUCK CAPACITY UNION SAYS FIRM DROPPED PLANS TO SLASH 1200 JOBS BY NEAL TEMPLIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SCRAMBLING TO CASH IN ON A RISING MARKET SAID IT WILL ADD ANOTHER ASSEMBLYPLANT'S WORTH OF TRUCK CAPACITY AND ACCORDING TO UNION OFFICIALS DROPPED PLANS TO SLASH 1200 JOBS AT A MAJOR PARTSMAKING COMPLEX IN FLINT MICH THUS AVERTING A PRODUCTIONCRIPPLING STRIKE THE SEPARATE ACTIONS HIGHLIGHT GM PRESIDENT JOHN F SMITH JR'S DETERMINATION THAT GM MUST PUMP OUT EVERY VEHICLE IT CAN AS HE PUSHES TO MAKE GOOD ON A VOW TO RETURN THE COMPANY'S NORTH AMERICAN VEHICLE OPERATIONS TO A PROFIT THIS YEAR AFTER MORE THAN FOUR YEARS IN THE RED TO BOOST TRUCK PRODUCTION GM SAID LATE YESTERDAY IT WILL ADD A THIRD PRODUCTION SHIFT THIS SPRING AT ITS FLINT MICH FULLSIZE VAN FACTORY AND ADD A THIRD WORK TURN IN JANUARY 1995 AT THE PONTIAC MICH EAST PLANT THAT BUILDS FULLSIZE PICKUPS THOSE TWO EXTRA SHIFTS OF PRODUCTION WILL MEAN JOBS FOR 1900 GM BLUECOLLAR WORKERS WHO MIGHT OTHERWISE HAVE BEEN IDLED GM ALSO WILL EXTEND PRODUCTION OF ITS CURRENT S10 BLAZER SPORT UTILITY VEHICLES THROUGH NOVEMBER AT ITS PONTIAC MICH WEST ASSEMBLY PLANT THAT PLANT WAS SCHEDULED TO CLOSE PERMANENTLY IN SEPTEMBER ALL TOGETHER THE EXTRA SHIFTS AND WORK EXTENSIONS COULD GIVE GM AS MANY AS 180000 TO 200000 EXTRA TRUCKS A YEAR A GM SPOKESWOMAN WOULD SAY ONLY THAT THE ADDED PRODUCTION IS A SIZABLE NUMBER JUST 12 DAYS AGO AMID COMPLAINTS FROM HIS MARKETING OPERATIONS THAT THEY WERE RUNNING SHORT OF POPULAR HIGHPROFIT TRUCK MODELS MR SMITH DECLARED DURING A SPEECH IN CHICAGO THAT WE'VE GOT TO COME UP WITH INNOVATIVE WAYS TO INCREASE TRUCK PRODUCTION TURNING TOWARD THE HEAD OF GM'S DOMESTIC TRUCK OPERATIONS CLIFFORD J VAUGHAN MR SMITH ADDED DRYLY CLIFF'S WORKING ON THAT ATTABOY CLIFF MEANWHILE GM OFFICIALS YESTERDAY BACKED AWAY FROM A SHOWDOWN WITH THE UNITED AUTO WORKERS UNION OVER LABOR COSTS IN ITS PARTS OPERATIONS AFTER THE UNION THREATENED A STRIKE AT AN AC ROCHESTER DIVISION FACTORY IN FLINT THAT WOULD HAVE SHUT DOWN NEARLY ALL OF GM'S DOMESTIC ASSEMBLY OPERATIONS THE SEVEN PLANTS IN THE FLINT EAST COMPLEX SUPPLY SPARK PLUGS FUEL PUMPS INSTRUMENT CLUSTERS AND A VARIETY OF OTHER PARTS USED IN VARIOUS GM VEHICLES GM REFUSED TO DISCUSS SPECIFICS OF THE FLINT LABOR AGREEMENT SAYING ONLY THAT IT WAS A WINWIN FOR BOTH UNION AND COMPANY BUT DALE LEBEAU PRESIDENT OF UAW LOCAL 651 SAID GM APPROVED A TENTATIVE LOCAL AGREEMENT THAT WILL HOLD EMPLOYMENT IN ITS AC ROCHESTER FLINT EAST COMPLEX AT ITS PRESENT LEVEL OF APPROXIMATELY 7000 WORKERS INSTEAD OF CUTTING THE WORK FORCE BY SOME 17 OR 1200 JOBS GM AGREED TO BRING ADDITIONAL WORK BACK INTO FLINT TO MAINTAIN THE CURRENT EMPLOYMENT LEVEL HE SAID THE FLINT SETTLEMENT WILL KEEP GM'S FACTORIES RUNNING BUT IT REPRESENTS ANOTHER SETBACK FOR GM'S CAMPAIGN TO CUT LABOR COSTS THAT ARE THE HIGHEST IN THE INDUSTRY IN JANUARY GM AGREED TO ADD 100 WORKERS AT ITS SHREVEPORT LA PLANT TO END A FOURDAY STRIKE PROMPTED BY GM'S ATTEMPT TO RUN THE ASSEMBLY LINE FASTER WITH FEWER WORKERS GM UNSUCCESSFULLY SOUGHT A TWOTIER WAGE STRUCTURE FOR PARTS WORKERS IN LAST YEAR'S NATIONAL NEGOTIATIONS LOOKING TO SCALE BACK WAGES AND BENEFITS THAT TOTAL NEARLY 43 AN HOUR AND ARE MORE THAN DOUBLE WHAT WORKERS AT MOST INDEPENDENT PARTS MAKERS EARN JT BATTENBERG III WHO HEADS GM'S PARTS OPERATIONS SOLD OFF SEVERAL UNCOMPETITIVE PARTS OPERATIONS LAST YEAR BUT NOW HIS DRIVE TO SLASH LABOR COSTS AT THE BUSINESSES HE WANTS TO KEEP SEEMS TO BE RUNNING INTO INCREASING RESISTANCE FROM THE UAW GM CAN STILL GET PRODUCTIVITY GAINS SAID ANALYST RONALD GLANTZ OF DEAN WITTER REYNOLDS BUT IT WILL HAVE TO KEEP THE SAME NUMBER OF WORKERS AND GIVE THEM MORE WORK TO DO THAT PATH MEANS THAT GM WILL CONTINUE TO HAVE HIGHER PART COSTS IN MANY AREAS THAN COMPETITORS SUCH AS CHRYSLER CORP OR TOYOTA MOTOR CORP WHICH RELY HEAVILY ON OUTSIDE SUPPLIERS GM STOCK CLOSED AT 61625 A SHARE DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE UNION HAS SCHEDULED A FRIDAY RATIFICATION VOTE FOR THE FLINT LABOR AGREEMENT IN ADDITION TO FLINT GM HAS 28 OTHER LOCATIONS OUT OF A TOTAL OF 117 LOCATIONS WHERE IT HAS YET TO REACH LOCAL LABOR CONTRACTS 9402160004 940216 TECHNOLOGY ORACLE DEMONSTRATES SOFTWARE TO TIE HOMES TO INTERACTIVE SERVICES LOS ANGELES ORACLE CORP UNVEILED NEW MULTIMEDIA SOFTWARE IN ITS QUEST TO PROVIDE THE TECHNOLOGY TO BRING INTERACTIVE SERVICES SUCH AS MOVIES ON DEMAND AND SHOPPING TO HOMES THE REDWOOD SHORES CALIF SOFTWARE COMPANY SAID THE PRODUCTS INCLUDE ORACLE MEDIA SERVER A DIGITAL MULTIMEDIA LIBRARY FOR STORING RETRIEVING AND MANAGING VIDEO AUDIO TEXT AND OTHER DATA ORACLE MEDIA OBJECTS A TOOL FOR SOFTWARE DEVELOPERS TO CREATE MULTIMEDIA INTERACTIVE SERVICES AND CDROM PROGRAMS AND ORACLE MEDIA NET WHICH CONNECTS THE HOME TV TO THE MULTIMEDIA LIBRARY VIA PHONE LINES SATELLITE BROADCASTS AND CABLE ORACLE'S NEW TECHNOLOGY BROADCAST YESTERDAY TO NEW YORK WASHINGTON AND TOKYO IN A LIVE VIDEO HOOKUP FROM CBS STUDIOS IN LOS ANGELES HAS GAINED SUPPORT FROM 20 COMPANIES INCLUDING CAPITAL CITIES/ABC INC AND WASHINGTON POST CO SEPARATELY ORACLE AND MOTOROLA INC SCHAUMBURG ILL SAID THEY HAVE AGREED TO WORK TOGETHER TO PROVIDE WIRELESS TRANSFER OF CORPORATE DATA SERVED THROUGH ORACLE DATABASES AND ORACLE MEDIA SERVER PRODUCTS USING ORACLE'S DATABASE AND NETWORK TECHNOLOGY AND MOTOROLA'S MOBILE NETWORKS INTEGRATION WIRELESS TECHNOLOGY ARE TO BE ANNOUNCED LATER THIS YEAR 9402160003 940216 WHO'S NEWS ENRON OIL & GAS CO ENRON OIL & GAS CO HOUSTON MARK G PAPA 47 YEARS OLD FORMERLY A SENIOR VICE PRESIDENT OF THIS OIL AND NATURALGAS COMPANY WAS NAMED TO THE NEW POSITION OF PRESIDENTNORTH AMERICAN OPERATIONS 9402160002 940216 INTERNATIONAL BALLADUR PULLS A TOUGH BALANCING ACT MANAGING FRANCE IN ITS MEAGER YEARS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS WHEN EDOUARD BALLADUR TOOK OVER AS FRENCH PRIME MINISTER LAST APRIL A TOP EUROPEAN DIPLOMAT IN PARIS DESCRIBED HIS MANDATE AS THE TRICKY ONE OF DOING NOTHING WHILE SEEMING TO DO A LOT THE COMMENT WAS A DELIBERATE EXAGGERATION OF COURSE BUT ONE THAT IS STILL ON THE MARK 10 MONTHS LATER MR BALLADUR HAS EMERGED AS A MASTER OF CRISIS MANAGEMENT A MAN WHOSE ASSURED BUT UNDERSTATED MANNER AND STRATEGY OF AVOIDING CONFLICT AT ANY COST AND IT'S OFTEN HIGH APPEARS TO BE JUST THE TONIC THE FRENCH PUBLIC IS LOOKING FOR MR BALLADUR HAS OPTED FOR A TYPE OF BANDAID POLITICS FIXING ONLY WHAT IS IN NEED OF IMMEDIATE REPAIR AND OFFERING SOOTHING ASSURANCES THAT HARD TIMES WILL SOON BE OVER SATIRISTS HERE DEPICT HIM AS A NATIONAL HYPNOTIST WHO MAKES PEOPLE FORGET THEIR REAL AILMENTS IN A 90MINUTE TELEVISION INTERVIEW MONDAY NIGHT THE PRIME MINISTER INSISTED THAT THERE WOULD BE NO CHANGE IN POLICY DESPITE A CONTINUING INCREASE IN UNEMPLOYMENT AND FORECASTS OF MEAGER ECONOMIC GROWTH OF 14 THIS YEAR I AM NOT GOING TO PUT INTO QUESTION SOMETHING THAT IS BEGINNING TO PRODUCE GOOD RESULTS HE SAID BUT AS MR BALLADUR AND HIS AIDES ACKNOWLEDGE A HARSH REALITY IS KNOCKING AT THE DOOR THERE ARE MAJOR SHORTCOMINGS IN THE STRUCTURE OF THE FRENCH ECONOMY THAT ARE DAMAGING ITS COMPETITIVE POSITION AT A TIME WHEN GERMANY BRITAIN AND SOME OF FRANCE'S OTHER EUROPEAN NEIGHBORS ARE TRYING TO IMPROVE THEIR OWN COMPETITIVENESS PARIS IS LAGGING BEHIND THE REAL QUESTION IS HOW LONG CAN WE KEEP GOING WITHOUT MAKING FUNDAMENTAL REFORMS SAYS FRANCOIS PERIGOT PRESIDENT OF THE FRENCH NATIONAL EMPLOYERS' ASSOCIATION HE AND OTHER BUSINESS LEADERS WHILE GENERALLY SYMPATHETIC TO THE BALLADUR GOVERNMENT SAY MAJOR ISSUES MUST BE ADDRESSED SOON THEY INCLUDE THE HEAVY BURDEN OF SOCIAL SECURITY AND OTHER OBLIGATORY LEVIES ON COMPANIES THAT RANK AMONG THE HIGHEST IN EUROPE A SYSTEM OF NATIONAL HEALTH INSURANCE WHOSE COSTS HAVE GONE AWRY AND WHICH TAKES LITTLE ACCOUNT OF DEMOGRAPHIC TRENDS AND THE ALMOST COMPLETE ABSENCE OF PRIVATE PENSION FUNDS A HISTORICAL QUIRK THAT EVERYONE AGREES MUST BE CORRECTED THE SHORTTERM OUTLOOK IS ALSO HAZY WHILE MR BALLADUR IS EXHORTING FRANCE TO PULL ITSELF OUT OF RECESSION BY CONSUMING MORE BANKERS WORRY THAT FRANCE IS CLOSE TO DISINFLATION PRICES ON MANY GOODS ARE ACTUALLY FALLING WHILE REAL INTEREST RATES PEGGED TO LEVELS IN GERMANY ARE CRIPPLINGLY HIGH FOR COMPANIES TO BE SURE MR BALLADUR HAS ENJOYED SOME IMPORTANT SUCCESSES HE MANAGED TO COAX A RELUCTANT NATION INTO ACCEPTING A NEW WORLDTRADE ACCORD AFTER THREATENING FOR MONTHS TO VETO IT AND TAKING ADVANTAGE OF A SOARING STOCK MARKET HE IS SELLING OFF SEVERAL LARGE STATEOWNED COMPANIES TO THE PUBLIC BUT MOST OF HIS EFFORTS ARE ON A SMALLER SCALE AIMED AT PUTTING OUT LOCAL FIRES HIS ANSWER TO MOST PROBLEMS BE THEY STRIKING AIR FRANCE WORKERS FLOODS IN THE SOUTH OF THE COUNTRY PROTESTING TEACHERS OR ANGRY FARMERS AND FISHERMAN IS TO AVOID CONFRONTATION AND PULL OUT HIS CHECKBOOK WHILE THE NATIONAL BUDGET DEFICIT IS STILL A MANAGEABLE 4 OF GROSS NATIONAL PRODUCT HIS LARGESSE WILL MAKE IT DIFFICULT TO REDUCE IN THE NEAR FUTURE RISING UNEMPLOYMENT CURRENTLY AT 12 IS THE BIGGEST NATIONAL PREOCCUPATION BUT SO FAR MR BALLADUR'S PIECEMEAL REMEDIES HAVE FAILED TO CURB THE INCREASE BUSINESS LEADERS COMPLAIN THAT THEY ARE UNDER STRONG POLITICAL PRESSURE NOT TO LAY OFF WORKERS EVEN IF THEY NEED TO CUT COSTS AND A HOST OF SMALL MEASURES THAT WERE ANNOUNCED RECENTLY TO BOOST EMPLOYMENT AND CONSUMPTION HAVE BEEN GREETED WITH SKEPTICISM AMONG THOSE IDEAS HE URGED THE HIRING OF MORE JANITORS AND GASSTATION ATTENDANTS AND PROMOTED A PLAN TO GIVE 5000 FRANCS 852 TO PEOPLE WHO TRADE IN THEIR 10YEAROLD CARS FOR NEW ONES ONE GROUP OF JOBLESS PEOPLE IN TOULOUSE SENT MR BALLADUR A CHECK FOR 5000 FRANCS TELLING HIM IT WAS TIME TO TRADE IN HIS OLD IDEAS FOR SOME NEW ONES OVERALL HOWEVER FRANCE SEEMS TO APPLAUD HIS MANAGEMENT AND IN DOING SO IS NURTURING MR BALLADUR'S PRESIDENTIAL AMBITIONS RAYMOND BARRE A FORMER PRIME MINISTER CONTENDS THAT MR BALLADUR'S STYLE ACCORDS WELL WITH THE NATION'S CURRENT PSYCHOLOGICAL STATE AFTER YEARS OF UPHEAVAL BROUGHT ABOUT BY PREVIOUS SOCIALIST GOVERNMENTS AND AT A TIME WHEN THE FRENCH SEEM NERVOUS ABOUT THEIR FUTURE THE PRIME MINISTER DOESN'T TROUBLE THEIR TRANQUILLITY AND AVOIDS MAKING WAVES MR BARRE SAYS MR BALLADUR REMAINS VERY POPULAR EVEN IF HIS APPROVAL RATINGS HAVE DROPPED SLIGHTLY IN RECENT WEEKS IF A PRESIDENTIAL ELECTION WERE TO BE HELD TODAY RATHER THAN AS SCHEDULED IN JUST OVER A YEAR POLLS SHOW MR BALLADUR WOULD WIN EASILY THAT IS BOTH A BLESSING AND A CURSE BECAUSE MR BALLADUR'S CAUTION IS BASED IN PART ON THE PRECARIOUSNESS OF HIS SITUATION AND HIS LACK OF ROOM TO MANEUVER ECONOMICALLY HE TOOK OVER A NATION IN RECESSION WITH AN ALREADY OVERSTRETCHED BUDGET POLITICALLY HIS POSITION OF PRIME MINISTER WAS MORE AKIN TO ONE OF CARETAKER MR BALLADUR WAS SUPPOSED TO PAVE THE WAY FOR THE TRIUMPHAL EMERGENCE OF HIS ALLY AND PARTY LEADER JACQUES CHIRAC THE MAYOR OF PARIS IN TIME FOR NEXT YEAR'S PRESIDENTIAL ELECTIONS INSTEAD MR CHIRAC IS NOW BREATHING HEAVILY OVER MR BALLADUR'S SHOULDER FRUSTRATED AND UNNERVED BY THE PRIME MINISTER'S POPULARITY SOME OF THE MOST BITING CRITICISM OF THE GOVERNMENT HAS COME FROM MR BALLADUR'S PURPORTED FRIENDS TO COUNTER THE CRITICISM MR BALLADUR IS REFUSING TO DISCUSS THE ISSUE OF THE PRESIDENCY THIS YEAR BUT AS HE REMINDED TV VIEWERS RECENTLY WHOEVER BECOMES THE CONSERVATIVE CANDIDATE FOR FRENCH PRESIDENT WILL NECESSARILY DEPEND ON THE RECORD OF THIS GOVERNMENT 9402160001 940216 INTERNATIONAL BRITISH AIR'S PROFIT MORE THAN TRIPLED IN ITS THIRD QUARTER LONDON BRITISH AIRWAYS PLC REPORTED THAT PRETAX PROFIT FOR ITS THIRD QUARTER ENDED DEC 31 MORE THAN TRIPLED FROM A YEAR EARLIER TO 65 MILLION 966 MILLION THE UNITED KINGDOM AIRLINE ATTRIBUTED THE PROFIT RISE TO IMPROVING US AND BRITISH ECONOMIC CONDITIONS RECOVERING PREMIUM TRAFFIC AND THE COMPANY'S COSTCUTTING PROGRAM IN THE YEAREARLIER PERIOD BRITISH AIRWAYS REPORTED PRETAX PROFIT OF 20 MILLION ECONOMIC RECOVERY EVIDENT IN A NUMBER OF IMPORTANT MARKETS IS ENABLING BRITISH AIRWAYS TO CONTINUE TO MAINTAIN TRAFFIC GROWTH CONSISTENT WITH INCREASES IN CAPACITY AND AT ENCOURAGING LEVELS IN PREMIUM CLASSES CHAIRMAN SIR COLIN MARSHALL SAID THE STRONG RESULT MET EXPECTATIONS BUT ANALYSTS POINTED OUT THAT THE YEAREARLIER PRETAX PROFIT WAS HIT BY THE DEVALUATION OF STERLING A SHOCK THAT COST THE COMPANY MORE THAN 40 MILLION IN PRETAX PROFIT AS A RESULT ANALYSTS SAID THAT THE AIRLINE'S PERFORMANCE IN THE RECENT THIRDQUARTER WAS ESSENTIALLY FLAT AT LEAST ONE ANALYST REVISED HIS FULLYEAR PROFIT FORECAST FOR THE AIRLINE DOWNWARD BUT MOST WERE STILL PREDICTING PRETAX PROFIT OF BETWEEN 300 MILLION AND 325 MILLION FOR THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BRITISH AIRWAYS AMERICAN DEPOSITARY SHARES CLOSED AT 6975 EACH DOWN 125 CENTS REVENUE PER PASSENGER OR YIELD EDGED UP 13 ALTHOUGH THE MEASURE WAS 2 LOWER IN LOCALCURRENCY TERMS ALSO BRITISH AIRWAYS KEPT COST INCREASES TO JUST 11 WHILE SALES ROSE 12 AS A RESULT OPERATINGPROFIT ROSE 39 FROM A YEAR EARLIER TO 97 MILLION PASSENGER TRAFFIC ROSE 11 WITH GROWTH IN BUSINESS AND FIRSTCLASS TRAFFIC MATCHING RISES IN ECONOMYCLASS DURING THE QUARTER HOWEVER THE AIRLINE ADDED 11 TO ITS CAPACITY CONSEQUENTLY PLANES FLEW 67 FULL IDENTICAL TO THE COMPARABLE PERIOD A YEAR EARLIER 9402160058 940124 LEISURE & ARTS MEN WITH HATS VS JFK BY JERRY E BISHOP NEW YORK I HAVE A 135 HAT A STETSON XXXX BEAVER SILVER BELLY RANCHER THERE'S A HOLE BURNED IN THE FRONT OF THE CROWN AND IF IT IS ANYBODY'S FAULT IT'S JOHN F KENNEDY'S OUR 35TH PRESIDENT YOU MIGHT RECALL DIDN'T WEAR A HAT AFTER HIS INAUGURATION IN 1961 THEREUPON 98 OF AMERICAN MEN TOOK THEIR CUE AND DOFFED THEIR HATS GIVING UP ONE OF THE MOST PRACTICAL ITEMS OF MALE ADORNMENT EVER TO COME DOWN THROUGH THE CENTURIES NO PRESIDENT SINCE THEN EXCEPT POSSIBLY LYNDON JOHNSON HAS WORN A HAT A HAT KEEPS THE SUN OUT OF THE EYES AND THE RAIN OFF THE SCALP THE STRAW HAT KEEPS THE HEAD COOL IN THE SUMMER AND THE FELT HAT KEEPS IT WARM IN THE WINTER IT CAN BE TIPPED IN RESPECT OR TOSSED IN THE AIR IN ECSTASY IN EMERGENCIES IT CAN BE USED TO FAN A SPARK INTO A FLAME OR LIFT A DRINK OF WATER OUT OF A STREAM FOR YOU OR YOUR HORSE NONE OF THESE ATTRIBUTES CAN BE CLAIMED BY BASEBALL CAPS MOTORCYCLE HELMETS OR THOSE LITTLE WOOL HEAD COVERINGS THAT CAN BE WADDED UP AND STUFFED IN A COAT POCKET AND THEREFORE DO NOT QUALIFY AS TRUE HATS THE KENNEDYINSPIRED WHOLESALE ABANDONMENT OF THE HAT THREE DECADES AGO HAS WROUGHT HARDSHIPS ON THOSE FEW OF US WHO HAVE PERSISTED IN WEARING A HAT TAKE THE PROBLEM OF GOING TO THE MOVIES BEFORE 1961 ALMOST EVERY THEATER DOWN TO THE LOCAL MOVIE HOUSE HAD A USHAPED WIRE RACK WELDED TO THE UNDERSIDE OF AT LEAST EVERY OTHER SEAT THE HAT WEARER SIMPLY TURNED HIS HAT UPSIDE DOWN AND SLIPPED IT INTO THE RACK SO THAT IT HUNG BY THE BRIM OUT OF MIND AND OUT OF THE WAY TODAY NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS SUCH A RACK OBVIOUSLY A HAT CANNOT BE WORN IN A THEATER WITHOUT RISKING PHYSICAL VIOLENCE FROM THOSE IN THE NEXT ROW BACK SO THE HAT HAS TO BE LAID ON THE ADJACENT SEAT AND THE OWNER MUST BE READY AT ANY MOMENT TO JERK IT OUT OF THE WAY SHOULD A LATECOMER WISH TO OCCUPY THAT SEAT THE HAT CAN BE LAID ON THE FLOOR UNDERNEATH THE SEAT BUT CHANCES ARE IT WILL BE STAINED BY PUDDLES OF SPILLED SODA AND SPRINKLINGS OF POPCORN OTHERWISE THE HAT OWNER MUST SIT THROUGH THE WHOLE EVENING HOLDING HIS LEGS CLOSE ENOUGH TOGETHER TO KEEP THE HAT FROM SLIPPING TO THE FLOOR EVEN THE LEGITIMATE THEATERS OF BROADWAY WHICH ONCE ACCOMMODATED ALL KINDS OF HATS INCLUDING SILK ONES HAVE REMOVED THE WIRE RACKS FROM THE SEATS CHECK THE HAT HA THEATERS RESTAURANTS AND NIGHTCLUBS USED TO HAVE HATCHECK GIRLS WHO KNEW EXACTLY HOW TO HANDLE A HAT DOWN TO BRUSHING IT OFF BEFORE RETURNING IT TO THE CUSTOMER NO SUCH EMPLOYEE EXISTS TODAY SOME THEATERS AND RESTAURANTS HAVE A RELIC CALLED A COATCHECK PERSON BUT HAND ONE OF THESE PERSONS A HAT AND YOU'LL GET A LOOK OF PUZZLEMENT IN RETURN IT CAN'T BE PUT ON A COAT HANGER AFTER A MOMENT THE CHECKER'S WANDERING GAZE NOTICES A SHELF ABOVE THE COAT RACK AND ENLIGHTENMENT DAWNS SOME OLD TELEPHONE DIRECTORIES ARE PUSHED ASIDE AND THE HAT IS LAID ON THE SHELFBRIM DOWN NOW IN THE OLD DAYS IF THERE WERE NO HOOKS ON WHICH TO HANG HATS AN EXPERIENCED HATCHECK GIRL KNEW NEVER TO LAY A HAT ON ITS BRIM SINCE THIS WOULD RISK GETTING THE HIGHLY VISIBLE UNDERSIDE OF THE BRIM DIRTY SHE WOULD LAY IT UPSIDE DOWN SO THAT SHOULD THE SHELF BE DUSTY THERE WOULD BE ONLY A THIN BARELY NOTICEABLE LINE OF DUST AROUND THE TOP OF THE CROWN WHICH COULD BE QUICKLY BRUSHED OFF TO HAND A HAT TO A RESTAURANT COAT CHECKER TODAY RISKS INCURRING A 25 CLEANING BILL PROVIDED ONE CAN FIND A DRY CLEANER WHO CAN STILL CLEAN AND BLOCK A HAT THERE ARE ONLY THREE LEFT IN ALL OF MANHATTAN ANYONE WALKING INTO A CAFE OR A HONKYTONK IN THE SOUTHWEST THESE DAYS WILL SEE AN ACRE OF HATS BOBBING OVER A BOWL OF CHILI OR CIRCLING AROUND IN A TEXAS TWOSTEP THIS ISN'T A FLOUTING OF THE ETIQUETTE OF THE OLD WEST JOHN WAYNE WOULD NEVER WEAR HIS HAT AT THE TABLE OR WHILE DANCING WITH THE SCHOOL MARM IT'S JUST THAT THESE ERSTWHILE COWPOKES HAVE NO PLACE TO HANG THEIR HATS EXCEPT ON THEIR HEADS EVEN IN TEXAS AND THEREIN LIES THE EXPLANATION FOR THE HOLE BURNED IN MY STETSON XXXX SILVER BELLY THIS HAT IF YOU'RE WONDERING IS A KIND OF MODERN HIGHERCROWN VERSION OF THE HAT GARY COOPER WORE IN HIGH NOON EXCEPT IT'S A SILVERBELLY GRAY INSTEAD OF THE BLACK THAT COOPER WORE EVEN THOUGH HE WAS THE GOOD GUY EACH WEDNESDAY MY FRIEND BEN PATRUSKY AND I HAVE LUNCH IN A LOWER MANHATTAN SALOON IT HAS THE COMFORTABLE FEEL OF ONE OF THOSE OLD NEW YORK BARS LEFT OVER FROM THE LAST CENTURY AND THE FOOD IS EXCELLENT AND INEXPENSIVE BUT UNLIKE THE SALOONS OF THE LAST CENTURY THERE IS NO PLACE TO PUT A HAT THERE IS NO COATCHECK PERSON MUCH LESS A HATCHECK GIRL AND THE HOOKS ON THE WALL ON WHICH CUSTOMERS HANG THEIR COATS ARE TOO SHORT TO HOLD A TRUE HAT THERE IS HOWEVER A LITTLENOTICED CLOSET WHERE THE WAITRESSES HANG THEIR COATS IT REMAINS SHUT UNTIL EARLY EVENING WHEN THE SHIFT CHANGES THE HOOKS THEREIN ALSO ARE TOO SHORT TO TAKE A HAT BUT THERE IS A RARELY USED BALD LIGHT BULB THAT STICKS OUT PERPENDICULAR TO THE WALL THE BULB ACCOMMODATES A STETSON XXXX BEAVER SILVER BELLY RANCHER PERFECTLY AND HAD DONE SO EVERY WEDNESDAY FOR MORE THAN THREE YEARS UNTIL THE OTHER DAY DURING THE LUNCH HOUR SOMEONE WHO OBVIOUSLY WAS BORN AFTER 1961 AND THOUGHT MY HAT WAS SOME KIND OF NEW LAMPSHADE TURNED THE BULB ON AND LEFT IT ON I'M THINKING ABOUT SENDING THE BILL FOR A NEW HAT TO TEDDY KENNEDY MR BISHOP COVERS SCIENCE TECHNOLOGY AND MEDICINE FOR THE JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR JFK HAD HATS BUT NOT TO WEAR WSJ FEB 16 1994 9401240051 YY94 MM02 9402160015 940127 HEALTH PROSTATECANCER STUDY SUPPORTS GOSLOW TACTICS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SUPPORTS THE NOTION THAT A WAITANDSEE STRATEGY IS AS VALID AS SURGERY OR RADIATION FOR TREATMENT OF EARLYSTAGE PROSTATE CANCER THE REPORT IS THE LATEST EFFORT TO ADDRESS A GROWING DILEMMA IN THE MANAGEMENT OF THE DISEASE WHICH IS EXPECTED TO KILL 38000 US MEN THIS YEAR A NEW DIAGNOSTIC TEST AND AGGRESSIVE SCREENING CAMPAIGNS ARE HELPING TO INCREASE EARLY DETECTION AND TREATMENT OF PROSTATE CANCER BUT THERE IS LITTLE STATISTICAL EVIDENCE THAT SUCH EFFORTS PROLONG SURVIVAL SINCE AGGRESSIVE TREATMENTS ESPECIALLY SURGICAL REMOVAL OF THE PROSTATE ARE COSTLY AND CARRY SIGNIFICANT RISKS AND SINCE DOCTORS CAN'T PREDICT RELIABLY WHICH PATIENTS ARE LIKELY TO BENEFIT FROM SURGERY OR WHICH COULD BE HARMED BY A CONSERVATIVE WATCHFUL WAITING APPROACH UROLOGISTS ARE EMBROILED IN CONTROVERSY OVER THE BEST STRATEGIES FOR TREATING EARLYSTAGE DISEASE THE MESSAGE OF OUR STUDY IS THAT WATCHFUL WAITING IS A REASONABLE ALTERNATIVE TO SURGERY AND RADIATION SAID GERALD W CHODAK PROFESSOR OF SURGERY AT THE UNIVERSITY OF CHICAGO AND DIRECTOR OF THE PROSTATE AND UROLOGY CENTER AT WEISS MEMORIAL HOSPITAL IN CHICAGO BUT HE WARNED THAT DOCTORS AND PATIENTS SHOULDN'T READ THE FINDINGS AS A BROAD RECOMMENDATION AGAINST AGGRESSIVE TREATMENT DECIDING WHAT IS THE BEST APPROACH DEPENDS TO A GREAT EXTENT ON THE PREFERENCES OF THE INDIVIDUAL PATIENT DR CHODAK SAID THIS IS ABOUT TRADEOFFS DR CHODAK IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT THE REPORT DREW SHARP CRITICISM FROM WILLIAM CATALONA CHIEF OF UROLOGY AT WASHINGTON UNIVERSITY MEDICAL SCHOOL ST LOUIS WHOSE RESEARCH HAS LED TO WIDESPREAD USE OF A BLOOD TEST KNOWN AS THE PSA TEST TO DETECT PROSTATE CANCER IN ITS EARLY STAGES THESE RESEARCHERS ARE PRESENTING A TERRIBLE PICTURE OF ACTIVE TREATMENT AND A ROSY PICTURE OF WATCHFUL WAITING AND THEY'RE MISLEADING THE PUBLIC DR CATALONA DECLARED AS A RESULT OF THE PSA TEST MORE THAN 200000 US MEN ARE EXPECTED TO BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR MANY OF THEM WHEN THE DISEASE IS CONFINED TO THE PROSTATE AND CONSIDERED TREATABLE THESE MEN WILL HAVE A BRIEF WINDOW OF OPPORTUNITY TO GET CURED THROUGH SURGERY HE SAID IF THEY GET CURED THEY'RE CLEAN FOR THE REST OF THEIR LIVES HE ALSO MAINTAINED THAT THE SUBJECTS IN THE STUDY WERE DOMINATED BY OLDER MEN WITH LOWGRADE TUMORS THE KIND OF MEN FOR WHOM WATCHFUL WAITING IS ALREADY OFTEN RECOMMENDED THEY AREN'T REPRESENTATIVE OF A CHANGING POPULATION OF PATIENTS WITH PROSTATE CANCER HE SAID THE STUDY IS BASED ON AN ANALYSIS OF SIX OTHER REPORTS INVOLVING 828 MEN FROM ISRAEL SCOTLAND SWEDEN AND THE US ALL WERE BELIEVED TO HAVE CANCER CONFINED TO THE PROSTATE GLAND AND NONE WERE TREATED INITIALLY THOUGH MANY WERE GIVEN HORMONE TREATMENTS LATER IN THE COURSE OF THEIR DISEASE DR CHODAK AND HIS COLLEAGUES FOUND THAT 87 OF THOSE CONSIDERED TO HAVE EITHER GRADE 1 OR GRADE 2 TUMORS CONSIDERED LESS AGGRESSIVE WHEN THEY WERE DIAGNOSED WERE STILL ALIVE 10 YEARS LATER JUST 34 OF MEN WITH GRADE 3 TUMORS SURVIVED WITH THE DISEASE FOR 10 YEARS THE FIGURES DON'T INCLUDE MEN WHO DIED OF OTHER CAUSES DR CHODAK SAID SOME OTHER STUDIES INDICATE THAT 10YEAR SURVIVAL RATES FOR SURGERY AND RADIATION ARE ABOUT 94 BUT JOSEPH E OESTERLING A UROLOGIST AT THE MAYO CLINIC ROCHESTER MINN SAID THAT A VALID COMPARISON WITH THE RESULTS OF DR CHODAK'S STUDY ISN'T POSSIBLE BECAUSE OF DIFFERENCES IN STUDY METHODS AND GROUPS OF PATIENTS A STUDY PUBLISHED LAST YEAR SHOWED THAT SURGICAL REMOVAL OF THE PROSTATE AS A CANCER TREATMENT INCREASED SIXFOLD BETWEEN 1984 AND 1990 PROVOKING CONCERN THAT MANY PATIENTS WERE RISKING SUCH COMPLICATIONS AS IMPOTENCE AND INCONTINENCE WITH LIMITED EVIDENCE OF BENEFIT DR OESTERLING SAID INCREASED USE OF THE PROCEDURE KNOWN AS RADICAL PROSTATECTOMY PARTLY REFLECTS NEW SURGICAL TECHNIQUES THAT CAN REDUCE CHANCES OF COMPLICATIONS HE SAID THE NEW STUDY PROVIDES MORE EVIDENCE TO SUPPORT CONSERVATIVE APPROACHES FOR OLDER MEN OR THOSE WITH OTHER DEBILITATING ILLNESSES FOR PEOPLE THAT HAVE LESS THAN 10 YEARS TO LIVE WATCHFUL WAITING COULD GIVE YOU RESULTS SIMILAR TO WHAT YOU WOULD GET WITH RADIATION OR SURGERY DR OESTERLING SAID BUT DR CHODAK MAINTAINED THAT FEW UROLOGISTS FEEL COMFORTABLE RECOMMENDING WATCHFUL WAITING EVEN IN SUCH CASES BECAUSE PREVIOUS STUDIES HAVE BEEN FLAWED AND BECAUSE THERE AREN'T ANY RELIABLE DATA COMPARING THE RESULTS OF SURGERY RADIATION AND WATCHFULWAITING HEADTOHEAD AMONG PATIENTS WITH SIMILAR LEVELS OF DISEASE HE ARGUED THAT THE STUDY SHOULD GIVE DOCTORS CONFIDENCE THAT SIMPLY MONITORING THE COURSE OF DISEASE IS A VALID APPROACH FOR MANY PATIENTS THE REPORT ALSO FOUND THAT CANCER HAD SPREAD BEYOND THE PROSTATE GLAND AFTER 10 YEARS IN 19 OF PATIENTS DIAGNOSED WITH A GRADE 1 TUMOR AND 42 OF THOSE WITH A GRADE 2 TUMOR THOSE RESULTS CLEARLY DEMONSTRATE THAT PROSTATE CANCER IS A PROGRESSIVE DISEASE WHEN MANAGED CONSERVATIVELY THE RESEARCHERS WROTE DR CHODAK SAID BOTH PATIENTS AND THEIR DOCTORS CAN WEIGH SUCH CHANCES IN CONSIDERING A CHOICE OF TREATMENT WE CAN'T PREDICT FOR SURE WHO WILL DO WELL WITH WATCHFUL WAITING AND WHO WILL DO POORLY HE SAID EACH INDIVIDUAL HAS A DILEMMA WHAT IS HE WILLING TO RISK IN ORDER TO GAIN A BENEFIT WHILE THE FINDINGS DON'T POINT CLEARLY TO ONE OPTION OR ANOTHER HE ADDED THEY WILL MAKE IT EASIER TO COUNSEL PATIENTS ABOUT WHAT HAPPENS TO THOSE WHO CHOOSE WATCHFUL WAITING SEE RELATED LETTER LETTERS TO THE EDITOR PROSTATE CANCER TESTS DON'T WAIT TOO LONG WSJ FEB 16 1994 9401270011 YY94 MM02 9402160013 940111 JUNTA'S HELPER SHUNNED BY THE WEST BURMA'S RULERS FIND AN ALLY IN MANHATTAN IS MIRIAM SEGAL A VISIONARY A PAWN OF RANGOON OR JUST A SAVVY OPERATOR FRIENDSHIP FORGED IN SHRIMP BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL RANGOON BURMA HE CALLS HER MIRIAM SHE CALLS HIM MY GENERAL SHE'S A WEALTHY NEW YORKER WHOSE FORMER FIFTH AVENUE OBJETS D'ART BOUTIQUES BLOSSOMED INTO BURMESE BUSINESS DEALS HE'S A DEVOUT BUDDHIST WHOSE JETFLYING LESSONS AT NEVADA'S NELLIS AIR FORCE BASE EVENTUALLY PROPELLED HIM TO NO 2 IN BURMA'S AIR FORCE AND THEN INTO THE UNLIKELY JOB OF MINISTER OF LIVESTOCK BREEDING AND FISHERIES THEIR LIAISON HAS ALL THE MAKINGS OF A CONVOLUTED BURMESE CINEMA CLASSIC EXCEPT ONE WHAT BRINGS MIRIAM MARSHALL SEGAL AND BRIG GEN MAUNG MAUNG TOGETHER ISN'T LOVE IT'S SHRIMP A TINY JOINT VENTURE PROCESSING THEM FOR EXPORT THE SETTING IS A LUSH TEXASSIZED NATION OF 42 MILLION PEOPLE THAT WAS SEALED OFF FROM THE MODERN WORLD FOR NEARLY THREE DECADES WRACKED BY SPUTTERING CIVIL WARS FOUGHT BY COMMUNIST INSURGENTS AND SECESSIONIST HILL TRIBES MISRULED SINCE 1962 BY A MILITARY DICTATOR AND ECONOMICALLY RUINED BY HIS SOCALLED BURMESE WAY OF SOCIALISM ONCE THE WORLD'S BIGGEST RICE EXPORTER BURMA SANK INTO NEAR BANKRUPTCY A RESOURCERICH BUT UNDEVELOPED SOUTHEAST ASIAN AFTERTHOUGHT WHERE TIME STOOD STILL WATER BUFFALO STILL PLOW FIELDS AND ELEPHANTS HAUL LOGS RANGOON A COMMERCIAL AND SOCIAL MECCA WHEN SINGAPORE AND BANGKOK WERE MALARIAL SWAMPS AND OPIUM DENS SANK INTO MOLDY DECAY NOW LIKE CHINA AND VIETNAM BURMA HAS BEGUN TO OPEN UP AND STIR MARKETORIENTED REFORMS HAVE BEGUN TO MOVE A MORIBUND ECONOMY SPROUT PRIVATE BURMESE ENTREPRENEURS AND LURE FOREIGN INVESTORS AND BURMESE EXPATRIATES THE US EMBASSY CALLED LAST YEAR'S REPORTED 109 GROWTH IN GROSS DOMESTIC PRODUCT A STUNNING RECOVERY FROM YEARS OF SLOW OR NEGATIVE GROWTH AUTHORITIES HAVE STRUCK CEASEFIRE DEALS WITH NINE OF 11 MAJOR ETHNIC INSURGENT GROUPS IT HAS BEEN FIGHTING SINCE THE END OF WORLD WAR II THEREBY OPENING ASIA'S LAST FRONTIER WILDERNESS AREA FOR DEVELOPMENT REGIONAL INVESTORS AND GOVERNMENTS ARE ACTIVELY PLANNING A GOLDEN RECTANGLE OF ECONOMIC BOOM WHERE BURMA CHINA LAOS AND THAILAND COME TOGETHER AN AREA LONG KNOWN AS THE OPIUMGROWING GOLDEN TRIANGLE A HUGE THAIFINANCED CASINO IS UNDER CONSTRUCTION THERE NOW THERE'S ONLY ONE PROBLEM HERE BURMA IS RULED BY ONE OF THE WORLD'S MOSTLOATHED MILITARY JUNTAS A GROUP OF 22 GENERALS WHO SEIZED POWER IN 1988 UNDER THE BANNER OF THE STATE LAW AND ORDER RESTORATION COUNCIL OR SLORC AND PROCEEDED TO MOW DOWN HUNDREDS OF UNARMED STUDENTS AND OTHER PRODEMOCRACY DEMONSTRATORS IMPRISON THOUSANDS MORE AND SEND TENS OF THOUSANDS FLEEING INTO EXILE WHICH BRINGS US BACK TO OUR MAIN CHARACTERS GEN MAUNG MAUNG A GENTLE MAN WITH A READY SMILE ISN'T A MEMBER OF SLORC BUT AS A CABINET MINISTER HE WORKS FOR SLORC WHICH IS DESPERATE TO EARN HARD CURRENCY SEAFOOD EXPORTS HE SAYS COULD QUICKLY BECOME THE COUNTRY'S BIGGEST HARDCURRENCY EARNER MEANWHILE HIS PARTNER MRS SEGAL HAS BECOME SLORC'S MOST PASSIONATE AMERICAN DEFENDER EVEN THOUGH SHE DESCRIBES HERSELF AS NOT A POLITICAL PERSON AT ALL SHE HAS ALSO BECOME ONE OF THE MOST VISIBLE AMERICAN INVESTORS IN BURMA WHILE OTHERS FILE SHAREHOLDER RESOLUTIONS CALLING FOR CORPORATE WITHDRAWAL FROM BURMA OF ITS BIGGEST AMERICAN INVESTORS INCLUDING TEXACO INC UNOCAL CORP AND AMOCO CORP MRS SEGAL IS RUNNING A ONEWOMAN CRUSADE TO GET AMERICANS MORE INVOLVED SHE HAS TESTIFIED BEFORE CONGRESS ON SLORC'S BEHALF FETED BURMESE GOVERNMENT DELEGATIONS AT HER CENTRAL PARK WEST APARTMENT IN MANHATTAN BUTTONHOLED POLITICIANS PENNED POSITION PAPERS AND LETTERS TO EDITORS AND BENT TELEPHONE EARS ARGUING THAT SLORC IS THE MUCHMALIGNED VICTIM OF BAD DIPLOMACY AND BIASED JOURNALISM SHE WANTS THE US TO GRANT BURMA MOSTFAVOREDNATION TRADING STATUS AND ADOPT THE KIND OF CONSTRUCTIVE ENGAGEMENT THAT SINGAPORE THAILAND AND CHINA HAVE FOLLOWED TROUBLE IS THIS IS THE SAME SLORC THAT PRESIDENT CLINTON ACCUSED IN MAY OF CREATING A TRAGIC HUMANRIGHTS SITUATION HE ORDERED A POLICY REVIEW WITH A VIEW TOWARD IMPOSING ECONOMIC OR OTHER SANCTIONS SLORC SAYS REP JIM LEACH A REPUBLICAN FROM INDIANA IS AS ODIOUS AS ITS NAME SOUNDS REPUBLICAN REP DANA ROHRABACHER OF CALIFORNIA SAYS IT DESERVES GANGSTER STATUS AND THE LAST US AMBASSADOR TO BURMA BURTON LEVIN CALLS SLORC A COLLECTION OF THUGS AND DOPES THE US AND OTHER GOVERNMENTS EXCORIATE SLORC FOR CONTINUING HUMANRIGHTS ABUSES AND EMBARGO FOREIGN AID HUMAN RIGHTS WATCH CALLS IT A HUMANRIGHTS PARIAH NOTING THAT IT HAS KEPT AUNG SAN SUU KYI A NOBEL PEACE PRIZEWINNING POLITICAL OPPONENT UNDER HOUSE ARREST FOR 4 1/2 YEARS SLORC SAYS SHE'S FREE TO LEAVE THE COUNTRY ANYTIME CRITICS OF SLORC DISMISS THE 53YEAROLD MRS SEGAL AS A MISLED MANHATTAN BAUBLEHEAD WHO IS EITHER BEING USED BY A CYNICAL REGIME OR IS A CYNIC HERSELF WHO IS COYLY EMBRACING SLORC TO MAKE MONEY SHE CALLS HERSELF AN ALTRUISTIC MONEYMAKER INTERESTED IN BOTH PROFITING AND HELPING LAST JUNE SHE SET UP A 100000 SCHOLARSHIP FUND FOR BURMESE STUDENTS AT BROWN UNIVERSITY MEANWHILE THE COMPANY SHE HEADS MMAI HOLDINGS LTD HAS INVESTED MORE THAN 4 MILLION IN BURMESE VENTURES INCLUDING THE SHRIMP PLANT A FISHING VENTURE AND A CEMENTBAGGING FACILITY THE FIRM REGISTERED IN THE BRITISH WEST INDIES INCLUDES AS A PARTNER THE PEREGRINE MERCHANTBANKING GROUP OF HONG KONG AND 10 FRIENDS OF MRS SEGAL IT IS ALSO NEGOTIATING HOTEL TIMBER DUTYFREE CELLULAR PHONE AIRCRAFT REPAIR EXPATRIATE HOUSING CONSTRUCTION CAR DEALERSHIP AND PHARMACEUTICAL IMPORT VENTURES SHE SAYS SHE ALSO HOPES TO SET UP A CONSULTING COMPANY TO HELP OTHER FOREIGNERS INVEST DON'T SELL HER SHORT SAYS GERALDINE STUTZ FORMER PRESIDENT OF HENRI BENDEL THE NEW YORK FASHION STORE IN WHICH MRS SEGAL OPENED THE SUCCESSFUL PORTS OF CALL BOUTIQUE IN THE MID1960S ANOTHER FRIEND STANLEY MARCUS OF NEIMAN MARCUS SAYS HOWEVER SHE'S SMART AS THE DEVIL ON MATTERS OF FASHION AND TASTE BUT I WOULDN'T APPOINT HER SECRETARY OF STATE NEVERTHELESS MRS SEGAL ARGUES THAT THE US PUNISHES SLORC BY WITHHOLDING AN AMBASSADOR DENYING AID AND TRYING TO ISOLATE THE REGIME BUT NOT THE MASTERMINDS OF CHINA'S TIANANMEN SQUARE MASSACRE IF THE US THINKS DIPLOMATIC AND ECONOMIC ENGAGEMENT IN CHINA WILL HELP THE CAUSES OF DEMOCRACY AND HUMAN RIGHTS WHY NOT IN BURMA TOO SHE ASKS UNLIKE WITH VIETNAM THE US HASN'T IMPOSED A TRADE EMBARGO ON BURMA MRS SEGAL WHO BEGAN IMPORTING BURMESE HANDICRAFTS IN 1978 SAYS SHE DIDN'T START DOING BATTLE FOR THEM UNTIL 1991 WHEN SHE BEGAN TO SEE POSITIVE CHANGES AND BECAME CONVINCED THAT THE NEW GENERATION OF GENERALS RUNNING SLORC WAS SINCERE WITHOUT FOREIGN AID SHE SAYS THEY HAVE DONE MORE TO OPEN UP AND IMPROVE BURMA IN THE PAST THREE YEARS THAN THEIR PREDECESSORS DID IN THE PREVIOUS 30 SHE HAS A POINT THEIR PREDECESSOR AND MENTOR GEN NE WIN SEIZED POWER IN 1962 AND LAUNCHED THE DISASTROUS BURMESE WAY OF SOCIALISM AND OTHER POLICIES WITH WHAT HISTORIANS CALL EXTRAORDINARY INEPTITUDE NOT TO MENTION KEEN ATTENTION TO HIS ASTROLOGER NE WIN'S 1987 DEMONETIZATION OF LARGE BANKNOTES WHICH WIPED OUT THE SAVINGS OF MANY THERETOFORE NONPOLITICAL BURMESE TRIGGERED THE 1988 PRODEMOCRACY DEMONSTRATIONS HIS RETIREMENT SLORC'S TAKEOVER AND ITS CRACKDOWN COMPARED TO NE WIN THE MEN OF SLORC COME ON LIKE PROGRESSIVE REFORMERS HOWEVER SLORC BESMIRCHED ITSELF NOT ONLY BY ITS BRUTAL 1988 CRACKDOWN LIKE CHINA IT ARGUED THE NATION WAS HEADED FOR CHAOS AND ANARCHY BUT ALSO FOR ITS HANDLING OF ELECTIONS IN 1990 SLORC'S PARTY GOT TROUNCED BY A PRODEMOCRACY COALITION INSTEAD OF STEPPING DOWN SLORC VOIDED THE VOTE DECLARING IT WOULD CONTINUE RULING BY DECREE UNTIL A NEW CONSTITUTION WAS DRAFTED BY A SLORCCONTROLLED CONVENTION AT WHICH CRITICISM OF THE GOVERNMENT IS OFFICIALLY OUTLAWED INDEED IN OCTOBER A CONVENTION DELEGATE AND 10 OF HIS NONDELEGATE SUPPORTERS WERE SENTENCED TO 20 YEARS IN PRISON FOR DISTRIBUTING SUPPOSEDLY SUBVERSIVE LEAFLETS AMONG OTHER DELEGATES SLORC SAYS THEY WERE THREATS MRS SEGAL WHO WASN'T IN BURMA DURING EITHER THE 1988 CRACKDOWN OR THE 1990 ELECTION DOESN'T DEEM SLORC FAULTLESS UNFORTUNATELY ONE OUTDATED PICTURE ONE STILL SHOT FROZEN IN TIME SEEMS TO RIVET EVERYONE'S ATTENTION SHE WRITES WHILE SLORC'S POSITIVE STEPS SINCE THEN GO UNHEEDED SOME DIPLOMATS IN RANGOON AGREE AND HAVE BEGUN TO MUTE PREVIOUSLY HARSH CRITICISM THESE PEOPLE AREN'T SYRIA NORTH KOREA OR IRAQ SAYS ONE IT'S MORE PINOCHET THAN POL POT SAYS ANOTHER OTHERS EVEN PRAISE SLORC'S ENERGY AND HARD WORK ITS REPORTED RELEASE OF MORE THAN 2000 POLITICAL PRISONERS ITS EFFORTS AT NARCOTICS SUPPRESSION BURMA IS THE WORLD'S BIGGEST OPIUM PRODUCER EVEN ITS ENLIGHTENED POLICIES IN PRESERVING ITS TEAK FORESTS BURMA HAS ABOUT 75 OF THE WORLD'S TEAK RESERVES SLORC'S LEASTBELIEVED ASSERTION IS THAT IT WILL RESTORE DEMOCRACY ALBEIT WITH THE MILITARY PLAYING A LEADING ROLE IN FUTURE GOVERNMENTS THE OBVIOUS MODEL IS INDONESIA INDEED SLORC'S POWERFUL FIRST SECRETARY THE 55YEAROLD LT GEN KHIN NYUNT LED A FIVEMAN DELEGATION TO INDONESIA JUST BEFORE CHRISTMAS AND AFTER A MEETING WITH PRESIDENT SUHARTO A FORMER REVOLUTIONARY GENERAL HIMSELF CALLED INDONESIA A MODEL OF STABILITY FOR BURMA ACTUALLY BURMA TODAY MORE RESEMBLES INDONESIA 25 YEARS AGO WHEN SUHARTO AND HIS FELLOW GENERALS BROOKED NO OPPOSITION IN THE WAKE OF A BLOODBATH AGAINST SUSPECTED COMMUNISTS THAT LEFT HUNDREDS OF THOUSANDS DEAD AND TENS OF THOUSANDS MORE IN PRISON INDONESIA'S RULERS IN THOSE DAYS HOWEVER HAD TWO THINGS GOING FOR THEM THAT SLORC DOESN'T FIRST THE COLD WAR ALLOWED WESTERN AID TO POUR IN WITH ONLY TOKEN ATTENTION TO HUMAN RIGHTS SECOND INDONESIA HAD A TEAM OF ENLIGHTENED ECONOMIC PLANNERS EDUCATED IN THE WEST AND DEDICATED TO SUHARTO'S COMMITMENT TO NATIONAL DEVELOPMENT NO SUCH COMPETENCE APPEARS TO EXIST IN BURMA FEEDING CRITICS WHO CONTEND THE ANNOUNCED POLICIES ARE MERE WINDOW DRESSING MEANWHILE SLORC TOLERATES NO POLITICAL DISSENSION THEY'VE RELEASED SOME POLITICAL PRISONERS BUT ONLY THE PEOPLE THEY DON'T FEAR SAYS A DIPLOMAT ORGANIZED OPPOSITION HAS BEEN DECIMATED AT LEAST 27 OPPOSITION POLITICIANS ELECTED IN 1990 REMAIN IN PRISON DIPLOMATS AND BURMESE IN RANGOON SAY SLORC FEARS SOME SORT OF SPONTANEOUS UPRISING AND THEREFORE RULES THROUGH INTIMIDATION ITS NETWORK OF INFORMANTS REPORTING TO THE MILITARY'S VAST INTELLIGENCE APPARATUS WHILE OFFICIALS SAY BURMESE CAN TALK FREELY SEVERAL SLORC OPPONENTS DECLINED TO SPEAK TO OR EVEN BE SEEN WITH A VISITING REPORTER SAYING THROUGH FAMILY MEMBERS OR FRIENDS THAT THEY FEARED REPRISALS THOSE WILLING TO TALK DID SO AT MEETINGS AT OTHER PEOPLES' HOUSES OR OFFICES MUCH THE SAME WAY DISSIDENTS MET JOURNALISTS IN BEIJING SEOUL TAIPEI JAKARTA AND SINGAPORE IN THE PAST ALL THOSE PLACES HOWEVER MANAGED TO BLUNT HUMANRIGHTS CRITICISM WITH STEADY IMPROVEMENTS IN LIVING STANDARDS ECONOMIC RESULTS IN BURMA CONTINUE TO BE MOSTLY THEORETICAL FOR ALL BUT A TINY CLASS OF BUDDING ENTREPRENEURS WHEN SLORC ABANDONED SOCIALISM AND OPENED THE COUNTRY TO FOREIGN INVESTORS IN 1988 INVESTORS WERE SLOW TO ARRIVE THIS WAS POSSIBLY BECAUSE IN A MOVE OF EXTRAORDINARY INEPTITUDE SLORC RENAMED THE COUNTRY MYANMAR BURMA WAS THE NAME BRITISH COLONIALISTS CHOSE THEREBY LOWERING ITS PROFILE CONSIDERABLY NEVERTHELESS SLORC SAYS NEARLY 2 BILLION IN INVESTMENTS MOST OF THEM IN OIL AND GAS PROJECTS AND TOURIST HOTELS HAS BEEN PLEDGED MUCH OF IT IN THE PAST TWO YEARS THE GOVERNMENT SAYS IT WANTS TO BUILD A SKI RESORT IN THE BURMESE HIMALAYAS THUS FAR SLORC HAS CONCENTRATED ITS EFFORTS ON UNIFYING A NATION THAT BRITISH COLONIALISTS IN 1948 LEFT DEEPLY DIVIDED INTO ETHNIC ENCLAVES STARTING WITH THE WA GROUP WHICH TURNED AGAINST ITS BURMESE COMMUNIST PARTY OVERLORDS IN 1989 SLORC HAS OFFERED LIMITED REGIONAL AUTONOMY AND DEVELOPMENT AID IN EXCHANGE FOR PEACE THE POWERFUL KACHINS ARE THE LATEST TO MAKE A DEAL THE TWO HOLDOUTS THE KARENS AND MONS ARE WAVERING IN RANGOON OVER THE CHRISTMAS HOLIDAYS MEANWHILE MRS SEGAL HAS BEEN BUSILY PURSUING HER BUSINESS INTERESTS IN HER YEARS OF BUYING BURMESE HANDICRAFTS SHE GOT TO KNOW MANY OF THE MEN WHO NOW RUN THE COUNTRY IN 1990 WITH SLORC EAGER TO DEMONSTRATE ITS OPENNESS TO FOREIGN INVESTORS BUT OUTSIDERS STILL LEERY MRS SEGAL SIGNED A JOINT VENTURE WITH GEN MAUNG MAUNG'S FISHERIES MINISTRY FOR EXCLUSIVE FISHING RIGHTS TO SOME 400000 SQUARE MILES OF DEEPWATER OFFSHORE TERRITORY THE COMPANY NAMED THE MYANMAR AMERICAN FISHERIES COMPANY MAFCO SUBSEQUENTLY SUBLET THE RIGHTS TO A CHINESE TRAWLING COMPANY BASED IN SPAIN WANG KAI DI CHINA'S ECONOMIC AND COMMERCIAL ATTACHE IN RANGOON SAYS HE HELPED PERSUADE THE CHINESE COMPANY TO JOIN MAFCO BECAUSE AROUND RANGOON MRS SEGAL HAD A LOT OF GANXI THE CHINESE WORD FOR CONNECTIONS AND PULL THE CHINESE BEGAN FISHING IN OCTOBER MRS SEGAL'S 16PAGE PRESS KIT WHICH SHE PROFFERS IN LIEU OF A RESUME INCLUDES PHOTOS AND NEWSPAPER CLIPS OF HER MEETINGS WITH TOP BURMESE OFFICIALS INCLUDING GEN KHIN NYUNT AND U KO LAY RANGOON'S MAYOR THE BIOGRAPHICAL SECTION DESCRIBES HER AS BEING AN ACCOMPLISHED PERSON WHO RODE AT THE FRONTIERS OF AND EXEMPLIFIED THE TRENDS OF HER TIMES THE MONTREAL GAZETTE IS QUOTED AS ATTRIBUTING HER BUSINESS SUCCESS TO HER ABILITY TO ADAPT MYSTERIOUS EASTERN OBJECTS TO THE WAY OF LIFE OF UPPERCRUST NORTH AMERICANS GEN MAUNG MAUNG MET SOME OF THE LATTER IN A VISIT TO THE US IN APRIL THAT MRS SEGAL ARRANGED THE FIRST BY A BURMESE OF CABINET RANK IN 33 YEARS SHE HAS ALSO DEVELOPED AN ABILITY TO EXPLAIN EASTERN WAYS WHEN AN ASIAN MAGAZINE PUBLISHED PHOTOS RECENTLY OF BURMESE CHAIN GANGS BUILDING ROADS SHE TELEPHONED A REPORTER FROM HONG KONG TO SAY THOSE ARE MURDERERS AND DRUG ADDICTS NOT POLITICAL PRISONERS SEE RELATED LETTERS LETTERS TO THE EDITOR A BRUTAL PARIAH REGIME' WSJ FEB 16 1994 9401110008 YY94 MM02 9402150167 940215 DR PEPPER PURCHASES NOTES DALLAS DR PEPPER/SEVENUP COS SAID IT HAS PURCHASED 73402 OR ABOUT 15 OF ITS 11 1/2 SENIOR SUBORDINATED DISCOUNT NOTES DUE IN 2002 THE PURCHASES MADE ON THE OPEN MARKET FOR ABOUT 485 MILLION WERE PART OF A PLAN TO CONSOLIDATE AND SIMPLIFY ITS CAPITAL STRUCTURE THE SOFTDRINK MAKER SAID THEY WERE FUNDED BY THE COMPANY'S BANK CREDIT AGREEMENT THE COMPANY SAID 388829 DISCOUNT NOTES ARE STILL OUTSTANDING 9402150166 940215 INTERNATIONAL SWEDISH UNEMPLOYMENT GROWS STOCKHOLM THE OFFICIAL SWEDISH UNEMPLOYMENT RATE INCREASED TO 88 OF THE WORK FORCE IN JANUARY FROM 8 IN DECEMBER AND FROM 75 IN JANUARY 1993 ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY 9402150165 940215 TECHNOLOGY DOW CORNING AGREES TO PAY HALF OF COST OF IMPLANTSUIT FUND A WALL STREET JOURNAL NEWS ROUNDUP THE THREE MAIN CORPORATE DEFENDANTS IN BREASTIMPLANT LITIGATION DISCLOSED HOW THEY WILL DIVIDE UP LIABILITY IN A PROPOSED 4 BILLION SETTLEMENT WITH DOW CORNING CORP AGREEING TO FUND ABOUT HALF OF THE AMOUNT DOW CORNING THE LEADING US MAKER OF SILICONE BREAST IMPLANTS SAID IT AGREED TO PAY ABOUT 2 BILLION OVER 30 YEARS AS ITS SHARE OF THE SETTLEMENT AGREEMENT DOW CORNING IS A MIDLAND MICH JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC IT WAS PREVIOUSLY REPORTED THAT DOW CORNING BRISTOLMYERS SQUIBB CO BAXTER INTERNATIONAL INC AND SEVERAL SMALLER PLAYERS REACHED AGREEMENT OVER THE WEEKEND ON THE DETAILS OF FUNDING THE SETTLEMENT AGREEMENT THE SETTLEMENT AGREEMENT ISN'T FINAL YET NEGOTIATORS STILL ARE IRONING OUT OTHER DETAILS WITH A DEADLINE OF MARCH 8 FOR REACHING A FINAL DEAL THEN THE PROPOSAL WOULD HAVE TO GO BEFORE US DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM ALA BEFORE IT COULD GO INTO EFFECT BRISTOLMYERS WOULD BE THE SECONDBIGGEST PAYER INTO THE LITIGATION SETTLEMENT FUND A SPOKESWOMAN SAID IT WOULD KICK IN UP TO 115 BILLION TOWARD THE SETTLEMENT OVER THE 30 YEARS OF THE DEAL BAXTER SAID IT WILL CONTRIBUTE APPROXIMATELY 556 MILLION TO THE FUND ALL THREE COMPANIES PREVIOUSLY TOOK CHARGES RELATED TO THE COSTS OF IMPLANT LITIGATION AND ALL SAID THEY EXPECT VARYING PORTIONS OF THEIR LIABILITY TO BE PAID BY INSURERS DOW CORNING AND BRISTOLMYERS HAVE DROPPED OUT OF THE BREASTIMPLANT BUSINESS BAXTER NEVER WAS IN IT BUT INHERITED LIABILITY THROUGH A MERGER ALL THREE COMPANIES DENY SILICONE IMPLANTS ARE RELATED TO ANY ILLNESSES 9402150163 940215 WHO'S NEWS GREINER ENGINEERING INC GREINER ENGINEERING INC DALLAS ROBERT L COSTELLO 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENGINEERING CONCERN SUCCEEDING JIMMY D ALLISON 53 WHO RESIGNED THOSE POSITIONS THE COMPANY SAID MR ALLISON ASKED FOR A REASSIGNMENT TO CONCENTRATE ON PUBLIC/PRIVATE PARTNERSHIP ACTIVITIES PARTICULARLY IN THE AREA OF ALTERNATIVE FINANCING METHODOLOGIES FOR TRANSPORTATION INFRASTRUCTURE PROJECTS HE WAS NAMED A VICE PRESIDENT MR COSTELLO WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF THE COMPANY 9402150162 940215 INTERNATIONAL SPANISH JOBLESS RATE UP MADRID THE PERCENTAGE OF SPAIN'S TOTAL WORK FORCE REGISTERED AS UNEMPLOYED CLIMBED TO 18 IN JANUARY FROM 175 IN DECEMBER THE LABOR MINISTRY SAID THE MINISTRY SAID THE NUMBER OF PEOPLE REGISTERED AS OUT OF WORK ROSE 24 OR 63615 TO 2770000 BY THE END OF JANUARY FROM THE PREVIOUS MONTH 9402150161 940215 WHO'S NEWS TRANSCISCO INDUSTRIES INC TRANSCISCO INDUSTRIES INC SAN FRANCISCO THIS RAILCAR MAINTENANCE AND RETROFITTER NAMED PHILIP C KANTZ PRESIDENT AND CHIEF EXECUTIVE OFFICER MR KANTZ 50 YEARS OLD WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITEL CONTAINERS INTERNATIONAL CORP HE SUCCEEDS STEVEN L PEASE WHO RETURNS TO DEUCALION VENTURE PARTNERS IN SONOMA CALIF MR PEASE 50 OVERSAW TRANSCISCO'S RECOVERY FROM REORGANIZATION PROCEEDINGS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE LAST YEAR 9402150160 940215 WHO'S NEWS HARKEN ENERGY CORP HARKEN ENERGY CORP DALLAS MICHAEL M AMEEN JR AN OIL INDUSTRY CONSULTANT WAS ELECTED A DIRECTOR OF THIS OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY HE SUCCEEDS GEORGE W BUSH A SON OF THE FORMER PRESIDENT OF THE US WHO RESIGNED TO RUN FOR THE GOVERNORSHIP OF TEXAS 9402150159 940215 CANADIAN PACIFIC TO SELL STOCK MONTREAL CANADIAN PACIFIC LTD SAID IT WILL ISSUE 22 MILLION COMMON SHARES AT 2275 CANADIAN DOLLARS US1694 EACH FOR TOTAL PROCEEDS OF C5005 MILLION THE ISSUE WHICH ISN'T BEING OFFERED IN THE US IS EXPECTED TO CLOSE MARCH 10 THE TRANSPORTATION AND ENERGY CONGLOMERATE SAID IT WILL USE NET PROCEEDS OF ABOUT C484 MILLION TO REPAY DEBT FINANCE ADDITIONS TO PLANT AND PROPERTY AND FOR GENERAL CORPORATE PURPOSES RBC DOMINION SECURITIES INC IS LEAD UNDERWRITER CANADIAN PACIFIC CURRENTLY HAS 3193 MILLION SHARES OUTSTANDING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CANADIAN PACIFIC CLOSED AT 1675 DOWN 1 9402150158 940215 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 337 30 TO 59 DAYS 340 60 TO 89 DAYS 345 90 TO 119 DAYS 348 120 TO 149 DAYS 350 150 TO 179 DAYS 355 180 TO 239 DAYS 363 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 345 30 DAYS 349 60 DAYS 354 90 DAYS CERTIFICATES OF DEPOSIT 272 ONE MONTH 277 TWO MONTHS 283 THREE MONTHS 3 SIX MONTHS 329 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 332 ONE MONTH 342 THREE MONTHS 360 SIX MONTHS BANKERS ACCEPTANCES 329 30 DAYS 335 60 DAYS 338 90 DAYS 344 120 DAYS 350 150 DAYS 355 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/8 3 1/4 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 3/8 ONE MONTH 3 9/16 THREE MONTHS 3 3/4 SIX MONTHS 4 1/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 593 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 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 706 60 DAYS 712 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 701 60 DAYS 710 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 272 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402150157 940215 WHO'S NEWS TESORO PETROLEUM CORP TESORO PETROLEUM CORP SAN ANTONIO THREE NEW DIRECTORS WERE NAMED BY THIS OIL AND GAS REFINING AND MARKETING COMPANY INCREASING THE BOARD TO 16 MEMBERS NAMED WERE FRED MANOCHERIAN A REALESTATE DEVELOPER IN NEW YORK JAMES Q RIORDAN RETIRED PRESIDENT OF BEKAERT CORP AND WILLIAM S SNEATH RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNION CARBIDE CORP 9402150156 940215 TYCO UNIT GETS AT&T CONTRACT PORTSMOUTH NH SIMPLEX TECHNOLOGIES INC A UNIT OF TYCO INTERNATIONAL LTD RECEIVED A CONTRACT FROM AMERICAN TELEPHONE & TELEGRAPH CO'S AT&T SUBMARINE SYSTEMS INC TERMS WEREN'T DISCLOSED SIMPLEX TECHNOLOGIES SAID IT WILL SUPPLY 525 KILOMETERS OF FIBEROPTIC TELECOMMUNICATIONS CABLE FOR A HAWAIIAN INTERISLAND SYSTEM CONNECTING KAUAI OAHU MAUI AND HAWAII 9402150155 940215 PRONET SETS CHICAGO ACQUISITION PLANO TEXAS PRONET INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF CHICAGO COMMUNICATIONS SERVICE INC'S PAGING OPERATION BASED IN CHICAGO WHICH SERVES 30000 SUBSCRIBERS TERMS WEREN'T DISCLOSED PRONET A PROVIDER OF PAGING AND MESSAGE SERVICES SAID IN A NEWS RELEASE THAT THE TRANSACTION IS SUBJECT TO VARIOUS CONDITIONS INCLUDING DUE DILIGENCE A DEFINITIVE PURCHASE AGREEMENT AND APPROVAL BY PRONET'S BOARD IT ALSO IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION REGULATORY AND OTHER THIRDPARTY APPROVALS 9402150154 940215 WHO'S NEWS NIKE INC NIKE INC BEAVERTON ORE THIS MAKER OF ATHLETIC FOOTWEAR AND APPAREL SAID IT NAMED THOMAS E CLARKE PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JUNE 1 1994 MR CLARKE 42 YEARS OLD IS GENERAL MANAGER OF THE NIKE BRAND HE SUCCEEDS RICHARD K DONAHUE 67 WHO BECOMES VICE CHAIRMAN OF THE BOARD HE HAS SERVED ON THE BOARD SINCE 1977 9402150153 940215 WHO'S NEWS LYNCH CORP LYNCH CORP GREENWICH CONN ROBERT A HURWICH 52 YEARS OLD WAS NAMED VICE PRESIDENT ADMINISTRATION SECRETARY AND GENERAL COUNSEL AT THIS SERVICE COMMUNICATIONS AND MANUFACTURING COMPANY SUCCEEDING DANIEL E MILLER WHO LEFT THE COMPANY IN JANUARY MR HURWICH WAS VICE PRESIDENT SECRETARY AND GENERAL COUNSEL AT MOORE MCCORMACK RESOURCES INC FROM 1975 TO 1989 9402150152 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE TIED TO THE PAST THE BABY BELLS HAVE BASED MUCH OF THEIR BUSINESS ON WIRED SERVICES NOW WHAT DO THEY DO BY LESLIE CAULEY THE BABY BELLS HAVE SEEN THE THREAT AND PROMISE IN THE COMING WIRELESS WARS AND THEY BOTH LOOK A LOT LIKE DAVID NEVINS OF BALTIMORE MR NEVINS A BALTIMORE PUBLICRELATIONS EXECUTIVE WHO BEARS AN UNCANNY RESEMBLANCE TO MILES SILVERBERG ON THE TV SHOW MURPHY BROWN WOULD SEEM TO BE A MODEL CUSTOMER HE TALKS ALMOST CONSTANTLY ON HIS CAR PHONE WHILE DRIVING FROM ONE APPOINTMENT TO ANOTHER USING STALLED TIME IN TRAFFIC JAMS TO RETURN CALLS AND CATCH UP ON OTHER BUSINESS PART OF HIS NIGHTLY RITUAL IS CLEANING OUT THE CRUMPLED PINK MESSAGE SLIPS THAT ACCUMULATE ON THE FLOOR THROUGHOUT THE DAY A CELLULAR DEVOTEE FOR NEARLY A DECADE MR NEVINS SAYS HE WOULDN'T EVEN THINK OF BOARDING A TRAIN OR HEADING ONTO THE GOLF COURSE WITHOUT HIS PORTABLE IN HAND I CAN'T BE OUT OF CONTACT WITH MY OFFICE FOR FOUR OR FIVE HOURS MR NEVINS EXPLAINS DURING A PHONE INTERVIEW FROM WHERE ELSE HIS CAR IF I DIDN'T HAVE TO WORRY ABOUT COST I'D USE IT FAR MORE FREQUENTLY THAN I DO NOW FOR THE LOCAL PHONE COMPANY THERE'S JUST ONE CATCH IT ISN'T CASHING IN ON MR NEVINS'S CELLULAR HABIT A RIVAL IS THE LOCAL COMPANY IS BELL ATLANTIC CORP OF PHILADELPHIA WHICH HAS A VIRTUAL MONOPOLY ON THE OLDFASHIONED WIRED PHONE NETWORK THAT SERVES THE MIDATLANTIC REGION BUT MR NEVINS BUYS HIS CELLULAR SERVICES FROM CELLULAR ONE WHICH IS OWNED BY A RIVAL BABY BELL SOUTHWESTERN BELL CORP OF SAN ANTONIO LITTLE WONDER THEN THAT THE SEVEN REGIONAL BELL COMPANIES LOOK AT THE WIRELESS REVOLUTION WITH A MIXTURE OF DREAD AND EXCITEMENT SPUN OFF FROM THE OLD AT&T EMPIRE A DECADE AGO THE BABY BELLS ARE SOME OF THE MOST WIREDUP COMPANIES IN THE WORLD DERIVING MORE THAN 90 OF THEIR PROFITS FROM WIRED TELEPHONE SERVICE ANY BREAKTHROUGHS IN THE UNTETHERED AND UNFETTERED FUTURE OF WIRELESS TECHNOLOGY WOULD SEEM TO THREATEN THEM MOST THE BABY BELLS AFTER ALL DON'T GET PAID WHEN CUSTOMERS SIMPLY SIDESTEP THEIR WIRED NETWORKS AT SOME POINT IT WILL GET MORE COSTEFFICIENT FOR CUSTOMERS TO USE WIRELESS SERVICES SAYS ROBERT BARADA VICE PRESIDENT OF CORPORATE STRATEGY FOR PACIFIC TELESIS GROUP THE SAN FRANCISCOBASED BABY BELL THAT SERVES CALIFORNIA AND NEVADA CLEARLY THAT'S WHEN WIRELESS WILL START TO EAT INTO THE WIRELINE MARKET SO THE BABY BELLS FACE A HOBSON'S CHOICE THEY CAN SIT IDLY BY AND LET THE WIRELESS FUTURE SOMEDAY RENDER THEIR NETWORKS ALL BUT OBSOLETE OR THEY CAN DIVE INTO THE WIRELESS FRAY AND PERHAPS HELP ACCELERATE THE ARRIVAL OF THAT SAME SCENARIO AND THAT'S WHERE THE PROMISE OF WIRELESS COMES IN FOR THE BABY BELLS FOR THE MOST PART THEY ARE CHOOSING THE LATTER ROUTE OFFERING CELLULARPHONE SERVICE INVESTING IN FOREIGN CELLULAR MARKETS AND STARTING UP WIRELESS DATA SERVICES THEY ALSO ARE TAKING ON A NEW KIND OF WIREBASED PARTNER CABLETV COMPANIES IN THE HOPE OF KEEPING THEIR LAND LINES HUMMING WITH ALL MANNER OF NEW INTERACTIVE SERVICES THEY MUST CHASE THE WIRELESS FUTURE WITH NO SMALL AMOUNT OF URGENCY UNTIL NOW CUSTOMERS HAVE HAD THEIR CHOICE OF JUST TWO COMPANIES FOR CELLULARPHONE SERVICE IN ANY GIVEN MARKET TYPICALLY THE HOMETOWN BABY BELL AND A COMPETITOR ABOUT HALF OF THE NATION'S 14 MILLION WIRELESS CUSTOMERS CURRENTLY BUY CELLULAR SERVICES FROM THE CELLULAR BUSINESSES OWNED BY THEIR LOCAL BELL COMPANIES THIS SPRING FEDERAL REGULATORS WILL BEGIN DOLING OUT THOUSANDS OF LICENSES UP TO SEVEN IN EACH MARKET FOR ACCESS TO THE PARTS OF THE ELECTROMAGNETIC SPECTRUM THAT WILL HOUSE THE NEXT GENERATION OF CELLULAR TECHNOLOGY PERSONAL COMMUNICATIONS SERVICES TO HEAR PROPONENTS TELL IT PCS WILL BE A LOT CHEAPER AND MORE CUSTOMERFRIENDLY THAN TODAY'S CELLULAR SERVICE AND HAVE A LOT MORE FEATURES THOUGH THE BABY BELLS ARE AMONG DOZENS OF COMPANIES PLANNING TO BID FOR PCS LICENSES REGULATORS WILL EXCLUDE THEM FROM BIDDING FOR SOME PRIME LICENSES BECAUSE OF THEIR ALREADYSIZABLE PRESENCE IN CELLULAR PHONE SERVICE THE BELLS PLAN TO RETROFIT AND UPGRADE THEIR EXISTING NETWORKS TO BE ABLE TO MATCH THE ENHANCED SERVICES OF PCS COMPETITORS PCS OFFERS ANOTHER THREAT AS WELL TRADITIONAL CELLULAR SERVICE OFTEN ENDS UP ROUTING A CALL ONTO THE WIRELINE OF A BABY BELL AND HENCE OFFERS AT LEAST A LITTLE REVENUE TO THE PHONE COMPANY PCS NETWORKS MAY ONE DAY LET ONE POCKET COMMUNICATOR ZAP A CALL DIRECTLY TO ANOTHER WITHOUT EVER HAVING TO JUMP ONTO A BABY BELL'S LINE THAT WOULD AVOID THE PAYMENT OF ANY ACCESS FEES TO THE PHONE COMPANY THE PCS THREAT IS THE BIG ONE SAYS ANALYST MARION BOUCHER OF DONALDSON LUFKIN & JENRETTE IN NEW YORK IT'S THE FORM OF COMMUNICATION THAT COULD MAKE THE EXISTING LANDLOCKED NETWORK OBSOLETE EVEN REGULAR CELLULAR SERVICE POSES A THREAT TO THE BABY BELLS LETTING LONGDISTANCE CALLS BYPASS THEIR LOCAL NETWORKS AT RISK IS THE 20 BILLION IN ANNUAL FEES THE SEVEN REGIONAL BELLS CURRENTLY RECEIVE FROM LONGDISTANCE PROVIDERS FOR ROUTING CALLS TO THEIR LOCAL CUSTOMERS THAT REPRESENTS A HEFTY 25 OF THE BABY BELLS' ANNUAL REVENUES CELLULAR SYSTEMS IN PARTICULAR THOSE OWNED BY AMERICAN TELEPHONE & TELEGRAPH CO THROUGH ITS PLANNED 126 BILLION ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC COULD LET A LONGDISTANCE PROVIDER AVOID PAYING SUCH ACCESS FEES EVERY TIME SOMEBODY MAKES A LONGDISTANCE CALL WITHOUT USING THE BELLS THEY LOSE SAYS JEFFREY MILLER A PARTNER AT ANDERSEN CONSULTING INC IN NEW YORK PACIFIC TELESIS WAS SO WORRIED ABOUT THE WIRELESS FUTURE THAT IT DECIDED LAST YEAR TO TAKE THE UNUSUAL STEP OF SPINNING OFF ITS CELLULAR OPERATIONS INTO A SEPARATE COMPANY THAT NEW CELLULAR UNIT WILL BE ABLE TO COMPETE MORE AGGRESSIVELY UNSHACKLED FROM REGULATORY RESTRICTIONS THE SPINOFF IS EXPECTED TO BE COMPLETED THIS SPRING OTHER BELLS HAVE TAKEN LESS DRASTIC STEPS SOUTHWESTERN BELL STARTED GIRDING FOR THE WIRELESS WAR EARLY SNAPPING UP CELLULAR PROPERTIES IN 1987 AND PAYING WHAT SEEMED LIKE A RIDICULOUSLY HIGH PRICE 50 PER POTENTIAL SUBSCRIBER IN THE WASHINGTON DC BALTIMORE AND CHICAGO MARKETS WALL STREET LAUGHED AT THEM AT THE TIME RECALLS STEVEN R YANIS A TELECOMMUNICATIONS ANALYST WITH KIDDER PEABODY & CO IN NEW YORK WALL STREET ISN'T LAUGHING ANYMORE TODAY THOSE SAME PROPERTIES WOULD COST MORE THAN 300 PER POTENTIAL SUBSCRIBER IF THEY WERE FOR SALE WHICH THEY AREN'T AND SOUTHWESTERN BELL IS AT THE TOP OF THE CELLULAR HEAP AMONG THE BELLS PART OF THE COMPANY'S WINNING STRATEGY IS TO PRICE SERVICES LOWER THAN ITS COMPETITORS CUSTOMERS HAVE RESPONDED BY FLOCKING TO THE COMPANY IN RECORD NUMBERS THE BABY BELL ADDED AN EYEPOPPING 200000 CELLULAR SUBSCRIBERS IN THE FOURTH QUARTER ALONE THAT GAVE SOUTHWESTERN BELL A YEAREND SUBSCRIBER BASE OF MORE THAN TWO MILLION CELLULAR CUSTOMERS THE LARGEST AMONG THE BELLS THE COMPANY ALSO BOASTS THE HIGHEST PENETRATION RATE AMONG THE BELLS 57 OF POTENTIAL SUBSCRIBERS COMPARED WITH THE BABY BELL AVERAGE OF 38 THE CELLULAR UNIT IS ALSO UNBELIEVABLY EFFICIENT REVENUE PER EMPLOYEE A BENCHMARK OF WORKER PRODUCTIVITY IS ALMOST DOUBLE THE CELLULARINDUSTRY AVERAGE AT 405000 SIMILARLY THE NUMBER OF SUBSCRIBERS PER EMPLOYEE IS 600 AT SOUTHWESTERN BELL THE INDUSTRY AVERAGE IS HALF THAT SOUTHWESTERN BELL IS CLEARLY THE BEST OPERATOR MR YANIS SAYS PACIFIC TELESIS WAS ANOTHER EARLY BELIEVER IN CELLULAR TODAY IT HAS MORE THAN ONE MILLION SUBSCRIBERS THE PLANNED SPINOFF WILL FREE UP THE WIRELINE TELEPHONE COMPANY TO GO AFTER THE CHOICEST PCS LICENSES THIS SPRING IT WILL ALSO PUT THE BABY BELL IN THE UNUSUAL POSITION OF COMPETING AGAINST ITS FORMER SIBLING FOR WIRELESS CUSTOMERS PACTEL'S DOMESTIC OPERATIONS ARE BOLSTERED BY A STRONG INTERNATIONAL PRESENCE INCLUDING A LUCRATIVE VENTURE IN GERMANY THAT CONTINUES TO EXCEED WALL STREET'S EXPECTATIONS ATLANTABASED BELLSOUTH CORP ALSO GETS KUDOS FOR ITS CELLULAR OPERATIONS WHICH CLAIM OVER 15 MILLION CUSTOMERS MORE THAN HALF OF THE COMPANY'S POTENTIAL SUBSCRIBERS ARE LOCATED OVERSEAS THE BABY BELL'S CELLULAR OPERATIONS ARE PARTICULARLY STRONG IN LATIN AMERICA WHERE THE BASIC LANDLINE INFRASTRUCTURE IS SO BAD THAT MANY PEOPLE USE CELLULAR AS THEIR PRIMARY FORM OF COMMUNICATIONS BELLSOUTH ALSO HAS A NATIONWIDE PAGING SYSTEM AND A MAJOR STAKE IN A WIRELESS DATA SERVICE OUTSIDE ITS HOME TERRITORY BELL ATLANTIC GOT INTO THE CELLULAR GAME FAIRLY LATE ANNOUNCING ITS ARRIVAL IN 1992 WITH THE PURCHASE OF METRO MOBILE CTS INC ONE OF THE LARGEST NONBELL INDEPENDENT CELLULAR COMPANIES IN THE NATION THE ACQUISITION EXTENDED BELL ATLANTIC'S CELLULAR REACH INTO THE BACKYARDS OF ITS FORMER SIBLINGS IN THE NORTHEAST SOUTHEAST AND SOUTHWEST BELL ATLANTIC TODAY CLAIMS ABOUT ONE MILLION SUBSCRIBERS THE CELLULAR UNIT CONTINUES TO AGGRESSIVELY ROLL OUT NEW SERVICES A HALLMARK OF SOUTHWESTERN BELL AS WELL BOTH COMPANIES OFFER A ONEPERSON ONENUMBER SERVICE THAT ALLOWS CUSTOMERS TO GET FOLLOWME CALLING FROM THE OFFICE TO THE CAR AND HOME AMERITECH CORP CHICAGO U S WEST INC DENVER AND NYNEX CORP WHITE PLAINS NY ARE CONSIDERED THE LEAST AGGRESSIVE CELLULAR PERFORMERS AMONG THE BELLS THE COMPANIES HAVE DONE LITTLE TO BUILD ON THEIR CELLULAR FRANCHISES OVER THE YEARS PERHAPS LEAVING THEM THE WORST PREPARED FOR THE COMING SHOWDOWN WITH NEW WIRELESS COMPETITORS AMERITECH HAS 860000 SUBSCRIBERS FOLLOWED BY U S WEST WITH 601000 SUBSCRIBERS DEAD LAST WITH 575000 SUBSCRIBERS IS NYNEX WHICH HAS BEEN SIGNIFICANTLY UPGRADING ITS NETWORK AND INTRODUCING A RAFT OF NEW SERVICES IN AN EFFORT TO LURE NEW CUSTOMERS MARKETING PLANS STRATEGIC ALLIANCES AND OVERSEAS INVESTMENTS MATTER LITTLE OF COURSE TO CUSTOMERS LIKE MR NEVINS OF BALTIMORE LIKE ANY CONSUMER HIS PRIMARY CONCERN IS GETTING THE BEST DEAL IN TOWN FROM WHOEVER HAPPENS TO BE OFFERING IT I'M GOING TO GO WITH WHATEVER COMPANY OFFERS THE BEST SERVICE FOLLOWED BY THE BEST PRICE MR NEVINS SAYS IT DOESN'T MATTER TO ME IF THAT HAPPENS TO BE BELL ATLANTIC OR SOMEBODY ELSE MS CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402150151 940215 MONDAY'S MARKETS STOCKS HURT BY DOLLAR AND BONDS VIGOROUS SHARE RALLY IS TRIMMED BUT PRICES STILL END DAY HIGHER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A VIGOROUS STOCKMARKET RALLY WITHERED AMID FALLING BOND PRICES AND A PLUNGING DOLLAR BUT SHARE PRICES STILL FINISHED HIGHER THE DOW JONES INDUSTRIAL AVERAGE ROSE 928 POINTS TO 390406 STANDARD & POOR'S 500STOCK INDEX EDGED UP 005 TO 47023 AND THE NASDAQ COMPOSITE INDEX ROSE 406 TO 78545 THE DOW INDUSTRIALS SHOT UP MORE THAN 25 POINTS BEFORE TRADE FRICTIONS BETWEEN THE US AND JAPAN ROILED THE MARKET EARLY IN THE SESSION STOCKMARKET INVESTORS IGNORED THE SINKING DOLLAR AND FOCUSED INSTEAD ON THE MOSTLY BENIGN INFLATION REPORT RELEASED FRIDAY A STABLE BOND MARKET FOR PART OF YESTERDAY ALSO HELPED PROP UP STOCK PRICES BUT CONCERNS THEN TURNED TO THE POTENTIAL FALLOUT FROM THE USJAPAN TRADE CONFLICT BOND INVESTORS WORRIED THAT A WEAK DOLLAR WILL IGNITE INFLATION AND PROMPT JAPANESE INVESTORS TO SELL THEIR US BONDS THAT DROVE BOND PRICES LOWER AND CARRIED STOCK PRICES RIGHT ALONG ANALYSTS SAID COMPUTERGUIDED PROGRAMS WERE RESPONSIBLE BOTH FOR THE STOCK MARKET'S EARLY ADVANCE AND ITS LATER DECLINE JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ WASN'T SURPRISED BY THE STOCK MARKET'S ABOUTFACE FAR MORE SURPRISING TO HIM WAS THAT STOCK PRICES RALLIED AT ALL HE ARGUED THAT THE RECENT RISE IN INTEREST RATES HAS INITIATED A CORRECTION THAT WILL TAKE THE DOW INDUSTRIALS DOWN 15 FROM THEIR HIGH THE KEY IS WE'RE IN A CORRECTION PHASE AND YOU'LL SEE A LOT OF ZIGZAGS HEAD FAKES AND FALSE RALLIES MR MCALINDEN SAID THE TREND OVERALL WILL BE A SLOW WATERTORTURE KIND OF DECLINE ECONOMICALLY SENSITIVE STOCKS WHICH HAVE LED THE MARKET CAME UNDER HEAVY SELLING PRESSURE PRECIOUS METALS STOCKS HOWEVER ROSE AS GOLD FOR APRIL DELIVERY CLIMBED 390 TO 38560 AN OUNCE THE ONLY ECONOMIC NEWS CAME FROM THE COMMERCE DEPARTMENT WHICH SAID DECEMBER BUSINESS INVENTORIES WERE UNCHANGED IN LINE WITH ANALYSTS' EXPECTATIONS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 090 TO 11692 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2631 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1134 ISSUES ROSE AND 1029 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 645 THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17273 MARKS AND 10265 YEN COMPARED WITH 17543 MARKS AND 10685 YEN FRIDAY 9402150150 940215 MARK SOLUTIONS TO BUY COMPANY MAYWOOD NJ MARK SOLUTIONS INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE BILTRITE STEEL BUCK CORP FINANCIAL TERMS WEREN'T DISCLOSED IN A NEWS RELEASE MARK SOLUTIONS SAID BILTRITE IN WESTBURY NY IS A MAKER OF HOLLOWMETAL PRODUCTS IT OPERATES FOUR PLANTS THAT PRODUCE METALDOOR AND FRAME PRODUCTS THE COMPANY SAID BILTRITE CURRENTLY HAS ANNUAL SALES OF ABOUT 22 MILLION 9402150149 940215 WHO'S NEWS ROCKWELL INTERNATIONAL CORP ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF ML MIKE SKOLNICK 53 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT OF THE ROCKETDYNE DIVISION A NEW POSITION AT THE CANOGA PARK CALIF UNIT HE PREVIOUSLY WAS VICE PRESIDENT OF ADVANCED PROGRAMS AT THE PARENT'S SYSTEM DEVELOPMENT CENTER ROCKWELL IS A DIVERSIFIED HIGHTECHNOLOGY CONCERN WITH INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES 9402150148 940215 ODETICS RECEIVES SUBCONTRACT ANAHEIM CALIF ODETICS INC RECEIVED A 96 MILLION SUBCONTRACT FROM MARTIN MARIETTA CORP FOR SPACEDATA RECORDERS FOR THE LANDSAT7 PROGRAM ODETICS SAID LANDSAT7 WHICH IS MANUFACTURED BY MARTIN MARIETTA IS AN EARTHRESOURCE OBSERVATION PROGRAM THAT COLLECTS INFORMATION ABOUT THE EARTH FROM SPACE IN A NEWS RELEASE THE COMPANY SAID THE LANDSAT7 PROGRAM IS FUNDED JOINTLY BY THE DEPARTMENT OF DEFENSE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ODETICS SAID ITS INFORMATIONSTORAGE DIVISION FORMERLY SPACE DIVISION WILL PROVIDE MARTIN MARIETTA WITH THREE SPACEDATA RECORDERS BY MID1996 THE COMPANY SAID THE RECORDERS WILL BE ON BOARD THE LANDSAT7 SPACECRAFT AND WILL STORE EARTHRESOURCE INFORMATION WHEN DATA LINKS ARE UNABLE TO COMMUNICATE DIRECTLY WITH GROUNDRECEIVING STATIONS 9402150147 940215 TRICONEX ACQUIRES PREMIER IRVINE CALIF TRICONEX CORP ACQUIRED PREMIER ENGINEERING INC A BATON ROUGE LABASED ENGINEERING COMPANY FOR 19 MILLION IN A STATEMENT THE INDUSTRIAL SAFETY AND CONTROLSYSTEMS COMPANY SAID PREMIER SPECIALIZES IN IMPLEMENTING SAFETYCRITICAL SYSTEMS FOR THE PETROCHEMICAL INDUSTRY 9402150146 940215 WHO'S NEWS LOUIS DREYFUS NATURAL GAS LOUIS DREYFUS NATURAL GAS OKLAHOMA CITY TWO NEW DIRECTORS WERE NAMED BY THIS ENERGY COMPANY RAISING THE BOARD'S SIZE TO EIGHT MEMBERS THE NEW DIRECTORS ARE JAMES R PAUL RETIRED FORMER PRESIDENT AND CHIEF EXEUCTIVE OF COASTAL CORP AND JAMES T RODGERS RETIRED FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF ANADARKO PETROLEUM CORP 9402150145 940215 ONTARIO HYDRO PLANS TO REDUCE CAPACITY TO MAKE ELECTRICITY TORONTO ONTARIO HYDRO SAID IT PLANS TO CUT GENERATING CAPACITY BY 84 TO REDUCE ITS ELECTRICITY SURPLUS AND LOWER COSTS THE STATEOWNED UTILITY SAID IT EXPECTS TO CUT 200 MILLION CANADIAN DOLLARS US1478 MILLION FROM ITS OPERATING COSTS OVER THE NEXT 10 YEARS BY SHUTTING DOWN PARTS OF THREE GENERATING STATIONS TWO OF THE FOUR UNITS AT THE LENNOX OILFIRED GENERATING STATION NEAR KINGSTON ONTARIO WILL CLOSE AS WELL AS TWO OF FOUR UNITS AT THE LAMBTON GENERATING STATION NEAR SARNIA ONT IN ADDITION THE UTILITY PLANS TO MOTHBALL ONE OF EIGHT UNITS AT ITS BRUCE NUCLEAR GENERATING FACILITY NEAR OWEN SOUND ONTARIO BY SEPTEMBER 1995 TWO YEARS AHEAD OF SCHEDULE THE CLOSURES WILL REMOVE 2700 MEGAWATTS OF CAPACITY FROM ONTARIO HYDRO'S TOTAL INSTALLED CAPACITY OF 32231 MEGAWATTS A SPOKESMAN FOR THE UTILITY SAID TOTAL SURPLUS CAPACITY IS ESTIMATED AT BETWEEN 3000 AND 5000 MEGAWATTS OVER AND ABOVE THE 22 MARGIN ALREADY ALLOWED ABOVE DAILY PEAK REQUIREMENTS MAURICE STRONG CHAIRMAN OF THE UTILITY SAID THE CUTS WERE MADE NECESSARY BY A DROP IN ELECTRICITY SALES OVER THE PAST FOUR YEARS IN ONTARIO WHICH HAS BEEN HARD HIT BY THE RECESSION EVEN IF DEMAND INCREASES BEYOND CURRENT EXPECTATIONS HE SAID THERE WILL BE MORE THAN ADEQUATE CAPACITY AVAILABLE THE CONSEQUENCES OF NOT TAKING ACTION AT THIS TIME WOULD PLACE UNACCEPTABLE BURDENS ON THE CORPORATION'S FINANCIAL CONDITIONS AND ITS RATES MR STRONG SAID HYDRO WHICH FROZE ITS RATES THIS YEAR AFTER THREE SUCCESSIVE YEARS OF LARGE INCREASES NOW PLANS TO SEEK A 14 RATE INCREASE FOR 1995 IN LINE WITH THE UTILITY'S INFLATION EXPECTATIONS THE COSTS ASSOCIATED WITH THE CLOSURE WILL BRING HYDRO'S FINAL LOSS FOR 1993 TO C35 BILLION THE UPPER END OF A PREVIOUS FORECAST ELEANOR CLITHEROE THE UTILITY'S CHIEF FINANCIAL OFFICER SAID PREVIOUSLY THAT BEFORE THE IMPACT OF ONETIME RESTRUCTURING CHARGES AND ASSET WRITEOFFS HYDRO RECORDED A SMALL OPERATING PROFIT FOR THE YEAR SHE SAID THE UTILITY EXPECTS TO REPORT A PROFIT OF C600 MILLION IN 1994 9402150144 940215 BUSINESS BRIEF HUFFY CORP REPORTS FOURTHQUARTER LOSS AMID RESTRUCTURING DAYTON OHIO HUFFY CORP REPORTED A LOSS IN THE FOURTH QUARTER AND RECORDED A 203 MILLION CHARGE TO CUT 200 JOBS AND RESTRUCTURE OPERATIONS AT ITS TRUE TEMPER HARDWARE CO UNIT FOR THE QUARTER THE MAKER OF BICYCLES BASKETBALL BACKBOARDS AND LAWN AND GARDEN TOOLS REPORTED A LOSS OF 179 MILLION OR 126 A SHARE COMPARED WITH A LOSS OF 321000 OR TWO CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE DECLINED 17 TO 1555 MILLION FROM 1867 MILLION WITHOUT THE CHARGES THE COMPANY SAID 1993 FOURTHQUARTER EARNINGS WOULD HAVE BEEN 24 MILLION OR 17 CENTS A SHARE THE COMPANY ATTRIBUTED DECLINING SALES TO THE ELIMINATION OF TRADITIONAL YEAREND ORDERING INCENTIVES AND EMPHASIS ON JUSTINTIME ORDERS WHICH IS CONTRIBUTING TO A SLOW START FOR 1994 HUFFY SAID OPERATING PROFITS IMPROVED DUE TO BETTER MARGINS AT THE COMPANY'S RECREATION AND LEISURE TIME PRODUCTS GROUP WHICH INCLUDES THE COMPANY'S BICYCLES AND BASKETBALL BACKBOARDS SEGMENTS IN RESTRUCTURING ITS TRUE TEMPER UNIT HUFFY TOOK A 143 MILLION CHARGE TO WRITE DOWN ASSETS AND GOODWILL AND A 6 MILLION CHARGE TO CUT JOBS AND ELIMINATE UNPROFITABLE AND MARGINALLY PROFITABLE PRODUCT LINES SUCH AS PRUNING TOOLS AND SPREADERS A SPOKESWOMAN SAID MOST OF THE JOB REDUCTIONS WOULD COME FROM THE CLOSURE OF ITS ANDERSON SC PLANT HUFFY WITH ABOUT 6400 EMPLOYEES WORLDWIDE SAID IT WILL REDUCE THE NUMBER OF EMPLOYEES AT TRUE TEMPER TO 600 FROM ABOUT 800 THE COMPANY ADDED THAT IT EXPECTS IMPROVED EFFICIENCY AND SAVINGS WILL PAY FOR THE RESTRUCTURING CHARGES BY THE END OF 1995 FOR THE YEAR HUFFY REPORTED A NET LOSS OF 49 MILLION OR 38 CENTS A SHARE COMPARED WITH NET INCOME OF 42 MILLION OR 33 CENTS A SHARE IN 1992 REVENUE INCREASED 8 TO 7579 MILLION FROM 7033 MILLION IN 1992 IN NEW YORK STOCK EXCHANGE TRADING HUFFY FINISHED DOWN 125 CENTS AT 19 9402150143 940215 BANK'S PLAN TO SELL ANNUITY' PRODUCTS FACES CRITICISM BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL THE EFFORTS OF TWO ENTREPRENEURS TO SELL TAXSHELTERED ANNUITYLIKE PRODUCTS THROUGH A SMALL INDIANOWNED BANK IN MONTANA ARE LIKELY TO RUN INTO HEAVY CRITICISM FROM BANK REGULATORS AS WELL AS A BLIZZARD OF LITIGATION FROM THE INSURANCE INDUSTRY BLACKFEET NATIONAL BANK OF BROWNING MONT HOPES TO SELL FEDERALLY INSURED CERTIFICATES OF DEPOSIT THAT WOULD ALLOW CUSTOMERS TO ACCUMULATE INTEREST ON A TAXFREE BASIS UNTIL THE MONEY IS WITHDRAWN THE PRODUCT WHICH WILL BE PROMOTED IN A NATIONWIDE MARKETING EFFORT BEGINNING TODAY WOULD COMPETE DIRECTLY WITH THE INSURANCE INDUSTRY'S 40 BILLION OF ANNUAL ANNUITY SALES THE TWO ENTREPRENEURS WHO PERSUADED THE BANK TO OFFER THE PRODUCT RICK FASOLD A DENVER BANKING CONSULTANT AND DENNIS M GINGOLD A WASHINGTON LAWYER CLAIM THAT THEY HAVE FOUND A LOOPHOLE IN REGULATIONS THAT HAVE HERETOFORE RESTRICTED BANKS FROM OFFERING ANNUITIES MR FASOLD SAID WHAT WE ARE OFFERING IS A CD FOR BANKINGLAW PURPOSES AND AN ANNUITY FOR TAXLAW PURPOSES BUT REGULATORS HAVEN'T APPROVED ANY SUCH OFFERING AND SAY THEY STILL HAVE PLENTY OF QUESTIONS ABOUT THE PROPOSED PRODUCTS THEY CAME IN WITH AN IDEA AND WE SAID THAT LOOKS INTERESTING BUT THAT WE HAD SOME QUESTIONS SAID LEONORA CROSS THE US DEPUTY COMPTROLLER OF THE CURRENCY THEY THEN SAID WE AREN'T ASKING FOR A LEGAL OPINION ALTHOUGH MR GINGOLD WAS QUOTED AS SAYING THAT THE OFFICE OF THE COMPTROLLER OF THE CURRRENCY TOLD HIM THE ACCOUNT WOULD BE COVERED BY THE FEDERAL DEPOSIT INSURANCE CORP MS CROSS STATED I CAN SAY WITH ABSOLUTE CERTAINTY THAT WE DIDN'T TELL THEM THAT THEY WOULD BE INSURED BY THE FDIC ONLY THE FDIC CAN DO THAT MS CROSS SAID THE COMPTROLLER'S OFFICE LAST NIGHT ADVISED THE BANK NOT TO GO AHEAD WITH PLANS TO INTRODUCE THE PRODUCT WE ARE NOTIFYING THE BANK TO LET THEM KNOW THAT WE THINK THEY MIGHT BE WORKING UNDER INCORRECT INFORMATION WE HAVE A LOT OF QUESTIONS PARTICULARLY CONCERNING THE FINANCIAL AND LEGAL RISK TO THE BANK ITSELF WE THINK IT IS IN THE BEST INTEREST OF THE BANK TO HOLD OFF ON DOING ANYTHING A SPOKESMAN FOR THE FDIC SAID NEITHER MR GINGOLD NOR MR FASOLD APPROACHED THE AGENCY AND THAT IT WOULD WORK WITH THE COMPTROLLER'S OFFICE TO LOOK INTO THE MATTER ALTHOUGH MR GINGOLD HAS BEEN QUOTED SAYING HE HAD A LETTER FROM THE INTERNAL REVENUE SERVICE CONFIRMING THAT TAXES ON THE INTEREST EARNED BY THE ACCOUNTS WOULD BE DEFERRED UNTIL THE FUNDS WERE WITHDRAWN MR FASOLD SAID YESTERDAY THAT HIS PARTNER DIDN'T ACTUALLY HAVE A LETTER BUT THAT HE HAD A LEGAL OPINION SUPPORTING HIS POSITION SEVERAL BANKING ATTORNEYS WERE EXTREMELY SKEPTICAL AS TO THE BANK'S ABILITY TO OFFER ITS PRODUCT IT'S VERY HARD TO BELIEVE THAT A LOOPHOLE AS BIG AS THIS REALLY EXISTS SAID LEE MYERSON OF SIMPSON THATCHER & BARTLETT IN NEW YORK A WASHINGTON LAWYER WHO SPECIALIZES IN BANK REGULATION SAID OF BLACKFEET NATIONAL'S PLANS I THINK THERE IS A LOT MORE PROMOTION TO THIS THAN THERE IS SUBSTANCE I AM NOT SURE THEY REALLY HAVE A PRODUCT ANOTHER ATTORNEY SAID THAT MESSRS FASOLD AND GINGOLD HAD ASKED A NUMBER OF BANKS TO OFFER THEIR PRODUCT BUT WERE TURNED DOWN BECAUSE OF THE INEVITABLE LEGAL BATTLES MR FASOLD ACKNOWLEDGED THAT HE AND HIS PARTNER HAVE AGREED TO ASSUME A PORTION OF BLACKFEET'S LEGAL COSTS THERE IS A RISK THAT SOMEONE MIGHT SUE BUT THE CHANCES THAT THEY MIGHT PREVAIL ARE VERY LOW MR FASOLD ASSERTED HE ALSO SUGGESTED INSURERS MAY BE UNWILLING TO SUE A BANK THAT IS OWNED BY AMERICAN INDIANS IF THEY WANT TO JUMP ALL OVER A 12 MILLION MINORITYOWNED BANK THAT'S UP TO THEM THE INSURANCE INDUSTRY HOWEVER SEEMS UNDETERRED WE CONSIDER THE BANK'S ACTION TO BE AN ATTEMPTED ENDRUN AROUND CURRENT BANKING AND INSURANCE LAWS SAID DICK SCHWEIKER PRESIDENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE IN WASHINGTON WHO ADDED THAT HIS ORGANIZATION WAS PREPARED TO EXPLORE ALL LEGAL REMEDIES 9402150142 940215 TECHNOLOGY ENDOSONICS SUBSIDIARY'S CATHETER PLEASANTON CALIF ENDOSONICS CORP SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ITS CARDIOVASCULAR DYNAMICS INC UNIT PERMISSION TO MARKET ITS BULLETT INFUSION CATHETER IN THE US ENDOSONICS SAID ITS CATHETER DELIVERS DRUGS TO PRESELECTED SITES WITHIN THE BODY BETTER THAN SOME OTHER CATHETERS ON THE NASDAQ STOCK MARKET THE COMPANY'S STOCK CLOSED AT 750 UP 75 CENTS OR 11 9402150141 940215 WHO'S NEWS KROGER CO KROGER CO CINCINNATI MICHAEL S HESCHEL 51 YEARS OLD FORMER GROUP VICE PRESIDENT OF MANAGEMENT INFORMATION SERVICES WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF INFORMATION SYSTEMS AND SERVICES AT THIS SUPERMARKET CHAIN HE WILL BE RESPONSIBLE FOR DIRECTING THE COMPANY'S MANAGEMENT INFORMATION SYSTEMS AND COORDINATING LOGISTICS AND REENGINEERING PROGRAMS 9402150140 940215 HOW DO I LOVE THEE LET ME COUNT THE WAYS IN PORTUGUESE BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL FRENCH THE LANGUAGE OF DIPLOMACY ITALIAN THE LANGUAGE OF TRAGIC OPERA LOVE PORTUGUESE THE LANGUAGE OF AS FAR AS MODERN LANGUAGES GO PORTUGUESE JUST DOESN'T GET ANY RESPECT SO SAYS JEANPIERRE VAN DETH PRESIDENT OF EXPOLANGUES A PARISBASED ASSOCIATION THAT ENCOURAGES THE STUDY OF FOREIGN TONGUES BUT IT'S A BUM RAP THAT'S WHY EXPOLANGUES CHOSE TO HIGHLIGHT PORTUGUESE AT ITS 1994 CONFERENCE LAST WEEK IN PARIS IT'S THE LANGUAGE OF TRAVEL ADVENTURE DISCOVERY SAYS MR VAN DETH IN FRENCH HIS PREFERRED TONGUE HE SAYS HE CAN UNDERSTAND PORTUGUESE BUT DOESN'T SPEAK IT PORTUGUESE IS THE WORLD'S EIGHTH MOST SPOKEN LANGUAGE THE NATIVE TONGUE OF 183 MILLION PEOPLE ONLY ABOUT 102 MILLION OF THESE PEOPLE LIVE IN PORTUGAL BUT PORTUGUESE IS THE OFFICIAL LANGUAGE OF BRAZILIANS WHO NUMBER 154 MILLION AS WELL AS THE FOLKS IN MOZAMBIQUE ANGOLA CAPE VERDE GUINEABISSAU AND SAO TOME E PRINCIPE THOSE COUNTRIES RECENTLY FORMED THEIR OWN UNION THE COMMUNITY OF PORTUGUESE SPEAKING NATIONS TO INCREASE TIES BETWEEN THEMSELVES AND TO MAKE THEIR VOICES IN PORTUGUESE HEARD ON THE INTERNATIONAL SCENE AMONG EUROPEAN LANGUAGES USED AROUND THE WORLD PORTUGUESE RANKS THIRD BEHIND ENGLISH AND SPANISH SAYS MR VAN DETH WHO INVITED PORTUGUESESPEAKING WRITERS AND ROCK MUSICIANS FROM VARIOUS COUNTRIES TO THE EXPOLANGUES CONFERENCE IN PARIS TO SHOWCASE THE LANGUAGE'S FINER POINTS FANS OF PORTUGUESE HAVE ALSO SUCCEEDED IN GETTING LISBON NAMED EUROPE'S CULTURAL CAPITAL OF 1994 BUT THE LANGUAGE STILL FACES AN UPHILL BATTLE EXCEPT PERHAPS FOR SAMBA AND BOSSA NOVA FEW PORTUGUESE WORDS HAVE WORKED THEIR WAY INTO ENGLISH USAGE YOU WILL FIND PORTUGUESE EXPRESSIONS IN JAPAN BECAUSE WE WERE THE FIRST TO ARRIVE THERE BY SEA SAYS MARIA JOSE RAU OF THE CAMOES PORTUGUESE INSTITUTE IN PARIS SUCH AS WELL MS RAU COULDN'T REMEMBER ANY OFFHAND EVEN MS RAU ADMITS PORTUGUESE'S NASAL VOWELS AND SH SOUNDS ARE DIFFICULT FOR NONNATIVE SPEAKERS BUT SPOKEN THE WAY IT IS SAY IN BRAZIL IT CAN BE VERY MELODIOUS IT'S ALMOST SUNG SHE SAYS SO FORGET JAPANESE CHINESE AND ARABIC AND TRY PORTUGUESE MR VAN DETH URGES THIS IS A LANGUAGE OF TODAY A LANGUAGE OF COUNTRIES EMERGING IN IMPORTANCE HE SAYS 9402150138 940215 INTERNATIONAL AGNELLI'S IFINT SETS NAME CHANGE NEW YORK IFINT SA THE INTERNATIONAL INVESTMENT ARM OF ITALY'S AGNELLI GROUP SAID IT WILL CHANGE ITS NAME TO THE EXOR GROUP AFTER A SHAREHOLDERS' MEETING IN MARCH THE LUXEMBOURGBASED PORTFOLIOMANAGEMENT COMPANY WHICH OPERATES IN NEW YORK PARIS AND HONG KONG IS AMONG A GROUP OF COMPANIES OWNED BY GIOVANNI AGNELLI CHAIRMAN OF THE AUTO MAKER FIAT SPA 9402150137 940215 INTERNATIONAL SIEMENS TO BUY REST OF DUEWAG ERLANGEN GERMANY THE TRANSPORTATION DIVISION OF SIEMENS AG THE GERMAN ELECTRONICS GIANT SAID IT WILL BUY THE REMAINING SHARES OF DUEWAG AG A STREETCAR AND ELECTRICTRAIN MAKER SIEMENS WILL OFFER EITHER A YEARLY PAYMENT OF 2205 MARKS 1259 A SHARE OR A LUMP SUM OF 38150 MARKS A SHARE FOR THE REMAINING 28 OF THE DUEWAG STOCK NOT ALREADY IN SIEMENS CONTROL THE ANNOUNCEMENT SAID 9402150136 940215 ECONOMY BUSINESS INVENTORIES SHOW LITTLE CHANGE FOR DECEMBER DESPITE INCREASE IN SALES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESS STOCKPILES HELD STEADY IN DECEMBER AS COMPANIES CONTINUED TO KEEP A CLOSE EYE ON INVENTORIES DESPITE INCREASING DEMAND THE COMMERCE DEPARTMENT SAID BUSINESS INVENTORIES TOTALED 87464 BILLION IN DECEMBER VIRTUALLY UNCHANGED FROM 87455 BILLION IN NOVEMBER SALES IN DECEMBER ROSE 08 AFTER CLIMBING 12 THE MONTH BEFORE THE COMBINATION CAUSED THE INVENTORYTOSALES RATIO THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE INVENTORIES AT THE CURRENT SALES PACE TO SLIP TO 143 FROM 144 FOR ALL 1993 INVENTORIES WERE UP 30 WHILE SALES INCREASED A MORE ROBUST 54 THE WHOLE ECONOMY HAS SIMPLY LEARNED TO OPERATE ON LOWER INVENTORIES SAID JOSEPH LIRO CHIEF ECONOMIST OF SG WARBURG & CO SOME INDUSTRIES HAVE MASTERED THE TECHNIQUE BETTER THAN OTHERS FACTORIES HAVE DONE THE BEST JOB MANUFACTURERS' INVENTORIES FELL 06 IN DECEMBER DESPITE A 14 INCREASE IN SALES MERCHANT WHOLESALER INVENTORIES CREPT UP 04 AND RETAIL INVENTORIES WERE UP 05 FOR THE MONTH FACTORIES WERE THE ONLY BUSINESS SEGMENT WHOSE INVENTORIES DECLINED FOR THE ENTIRE YEAR DESPITE RISING SALES MR LIRO SAID THAT THE ONLY THING LIKELY TO REVERSE THE TREND OF LEAN INVENTORIES IS HIGH INFLATION THEN BUSINESSES MAY BUY EXTRA MERCHANDISE TO AVOID PAYING A LOT MORE FOR IT LATER RIGHT NOW WITH INFLATION EXTREMELY WELLBEHAVED THAT DOESN'T SEEM LIKE A LIKELY SCENARIO SEPARATELY IN ITS QUARTERLY FORECAST THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS ESTIMATED THAT THE ECONOMY WILL GROW 29 IN 1994 FOURTH QUARTER OVER FOURTH QUARTER AND 27 IN 1995 THAT'S IN LINE WITH SEPARATE FORECASTS MADE BY THE CLINTON ADMINISTRATION THE CONGRESSIONAL BUDGET OFFICE AND THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER THE NABE ALSO FORECAST THAT INFLATION ON THE SAME BASIS WILL RUN AT A 31 RATE IN 1994 AND 34 IN 1995 THE 1995 FORECAST FOR INFLATION IS SLIGHTLY HIGHER THAN OTHER ESTIMATES BUT IS STILL MODERATE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN DECEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9402150135 940215 CREDIT MARKETS COLOMBIA TO SELL YANKEE BONDS WITH INVESTORS READY TO BUY AMID A SHORTAGE OF NEW ISSUES BY JACQUELINE DOHERTY AND CANDACE CUMBERBATCH SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS HUNGRY FOR PAPER ARE READY TO SNAP UP THE REPUBLIC OF COLOMBIA'S FIRST YANKEE BOND OFFERING WHICH IS SET TO BE LAUNCHED TODAY IN THE CORPORATE BOND MARKET COLOMBIA IS EXPECTED TO SELL 250 MILLION OF 10YEAR BONDS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN INVESTORS IN THE US THE BONDS ARE BEING MARKETED WITH A YIELD SPREAD OF 15 PERCENTAGE POINTS OVER COMPARABLE TREASURYS THROUGH LEAD MANAGER MERRILL LYNCH & CO THE CORPORATE BOND MARKET WHICH HAS HAD A DEARTH OF NEW ISSUES SEEMS READY AND WILLING TO ABSORB THE DEAL THE LACK OF SUPPLY MEANS YOU HAVE TO PLAY ONE MUTUAL BONDFUND PORTFOLIO MANAGER SAID MEANWHILE THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE TO 97 9/32 PARTLY IN RESPONSE TO JITTERS OVER A POSSIBLE TRADE WAR WITH JAPAN THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 645 FROM 640 ON FRIDAY INVESTORS SEEM TO BE TURNING TO COLOMBIA'S DEBT AS AN ALTERNATIVE TO SIMILARLY RATED US CORPORATE BONDS BECAUSE IT OFFERS A MUCH HIGHER YIELD THE PAPER IS RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP YOU'RE GETTING 50 MORE YIELD SPREAD THAN SIMILARLY RATED US CORPORATE BONDS SAID RAY GOODNER A PORTFOLIO MANAGER AT IDS FINANCIAL SERVICES INC FOR EXAMPLE BLACK & DECKER CORP'S 75 BONDS MATURING IN 2003 WHICH ARE RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P TRADE AT 117 PERCENTAGE POINTS OVER TREASURYS COLOMBIA'S DEBT IS LIKELY TO BE PRICED AT A MUCH NARROWER YIELD SPREAD OVER TREASURYS THAN THE GLOBAL BONDS SOLD BY ARGENTINA IN DECEMBER THAT 1 BILLION BOND OFFERING WAS PRICED AT 99368 TO YIELD 8474 OR 28 PERCENTAGE POINTS OVER TREASURYS THE BONDS HAVE SINCE TRADED UP TO 10155 FOR AN 814 YIELD OR 22 PERCENTAGE POINTS OVER TREASURYS BECAUSE COLOMBIA IS CONSIDERED MORE STABLE THE YIELD SPREAD ON ITS DEBT ISN'T EXPECTED TO NARROW AS DRAMATICALLY AS DID ARGENTINA'S DEBT COLOMBIA'S DEBT IS BEING PRICED AT A NARROW YIELD SPREAD AND THE DEAL WON'T BE AS LIQUID AS ARGENTINA'S JUMBO DEBT OFFERING ONE TRADER NOTED SOME NARROWING WILL OCCUR ONE TRADER COUNTERED BECAUSE OF THE DEAL'S SCARCITY VALUE COLOMBIA ISN'T EXPECTED TO SELL ADDITIONAL DEBT OVER THE NEXT SIX MONTHS BESIDES INVESTMENTGRADE RATINGS SUCH AS COLOMBIA'S DON'T IMPROVE AS RAPIDLY AS JUNK RATINGS ARGENTINA'S BONDS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P WE DON'T EXPECT THE RATING FOR COLOMBIA WILL MOVE IN THE NEAR TERM SAID LACEY GALLAGHER A DIRECTOR AT S&P COLOMBIA IS CONSIDERED ONE OF THE MOST STABLE LATIN AMERICAN COUNTRIES WHAT SEPARATES IT FROM OTHER LATIN AMERICAN COUNTRIES IS THE RELATIVE STABILITY OF ITS FISCAL POLICIES UNDER ECONOMIC AND POLITICAL PRESSURE NOTED MS GALLAGHER AT S&P IN ADDITION IT WAS THE ONLY MAJOR LATIN AMERICAN COUNTRY THAT DID NOT DEFAULT ON ITS DEBT IN THE 1980S THAT SAYS SOMETHING TO THEIR WILLINGNESS TO SERVICE THEIR DEBT UNDER PRESSURE THEY GET CREDIT FOR THAT SHE ADDED HERE IS A COUNTRY WITH A CLEAN DEBT RECORD AND AN IMPRESSIVE HISTORY OF ECONOMIC GROWTH SAID RAY GOODNER OF IDS WHO PLANS TO BUY THE PAPER IF IT IS SOLD AT THE YIELD SPREAD WHERE IT IS PRESENTLY BEING MARKETED YESTERDAY DUFF & PHELPS CREDIT RATING CO GAVE THE ISSUE A PRELIMINARY INVESTMENTGRADE RATING OF TRIPLEB COLOMBIA'S RECORD AS VIRTUALLY THE ONLY LATIN AMERICAN COUNTRY TO MEET ALL OF ITS SCHEDULED DEBT PAYMENTS THROUGH THE 1980S PROVIDES EVIDENCE OF COLOMBIA'S COMMITMENT TO MAINTAIN AN UNBLEMISHED PAYMENTS RECORD SAID DUFF & PHELPS YESTERDAY COLOMBIA HAS MAINTAINED STEADY ECONOMIC GROWTH AT THE HIGHEST RATE FOR ANY LATIN AMERICAN COUNTRY SINCE 1980 SAID THE RATING CONCERN DUFF & PHELPS SAID THAT GUERRILLA AND DRUGRELATED VIOLENCE IN COLOMBIA RAISES SOME CONCERNS BUT THESE CONCERNS ARE INCORPORATED INTO THE RATING YESTERDAY'S CORPORATE NEWISSUE MARKET WAS SLUGGISH AS ONLY 890 MILLION OF DEBT WAS PRICED ISSUERS INCLUDED BANQUE PARIBAS WHICH SOLD 300 MILLION OF DEBT OUT OF ITS NEW YORK BRANCH ANR PIPELINE CO WHICH SOLD 125 MILLION OF DEBENTURES AND NORTEK INC WHICH SOLD 190 MILLION OF JUNK BONDS TRADING IN THE SECONDARY MARKET WAS EXTREMELY LIGHT AS THE MARKET SHRUGGED OFF A PLUNGING US DOLLAR TRADING IN THE JUNK BOND MARKET WAS ALSO LIGHT WITH PRICES CLOSING UNCHANGED NORTEK WHICH MAKES BUILDING PRODUCTS AND INDUSTRIAL AND ELECTRICAL PRODUCTS SOLD 190 MILLION OF 10YEAR 9875 SENIOR SUBORDINATED NOTES AT 99214 TO YIELD 10 THE BONDS TRADED UP TO PAR FOR A 9875 YIELD BEAR STEARNS & CO WAS THE LEAD MANAGER FOR THE DEAL WHICH WAS RATED CAA BY MOODY'S AND TRIPLEC BY S&P SPOOKED BY A PLUNGE IN THE DOLLAR AGAINST THE YEN TRADERS SENT PRICES OF LONGERTERM TREASURY SECURITIES MODERATELY LOWER SECURITIES MATURING IN FIVE YEARS AND LESS MEANWHILE FINISHED LITTLE CHANGED THE DOLLAR TOUCHED A NEARLY SIXMONTH LOW AGAINST THE YEN YESTERDAY TRADERS WORRIED THAT IN RESPONSE TO THE DOLLAR'S STEEP DECLINE JAPANESE INVESTORS WOULD UNLOAD TREASURY SECURITIES BUT THERE WAS LITTLE EVIDENCE THAT TOOK PLACE WITH MOST OF THE DECLINE COMING AT THE HANDS OF SPECULATORS FOR MOST OF THE SESSION TRADING WAS LISTLESS WITH DEALERS FINDING LITTLE REASON TO PUSH THE MARKET SIGNIFICANTLY IN EITHER DIRECTION BUT AT MIDAFTERNOON TRADERS TURNED THEIR ATTENTION TO THE DEVELOPMENTS IN THE FOREIGNEXCHANGE MARKET IN RESPONSE TO CONCERNS THAT JAPANESE INVESTORS MIGHT BEGIN UNLOADING LONGTERM SECURITIES TRADERS BEGAN SELLING TREASURYS FOR JAPANESE BOND HOLDERS A WEAKENING DOLLAR AND A STRENGTHENING YEN WOULD ERODE THE VALUE OF THEIR DOLLARDENOMINATED HOLDINGS DESPITE THE WIDESPREAD TALK THERE DIDN'T APPEAR TO BE SIGNIFICANT SELLING BY JAPANESE INVESTORS THEY REALLY HAVEN'T BEEN DOING ANYTHING SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES CO INTERNATIONAL THE TREASURY'S 10YEAR NOTE ENDED 1/8 POINT LOWER AT 99 25/32 TO YIELD 589 UP FROM 587 ON FRIDAY SEPARATELY THE TREASURY SOLD 13WEEK AND 26WEEK BILLS AT ITS WEEKLY AUCTION HERE ARE THE RESULTS OF THE SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB 17 THE 13WEEK BILLS MATURE MAY 19 1994 AND THE 26WEEK BILLS MATURE AUG 18 1994 INVESTORS WERE GEARING UP FOR WHAT WILL PROBABLY BE TODAY'S MOST CLOSELY WATCHED DEAL A 32 BILLION OFFERING OF REVENUEANTICIPATION WARRANTS FROM THE STATE OF CALIFORNIA THE REVENUEANTICIPATION WARRANTS ARE SHORTTERM SECURITIES THAT CAN MATURE IN THE FOLLOWING FISCAL YEAR SAID A SPOKESWOMAN FOR CALIFORNIA TREASURER KATHLEEN BROWN THEY ARE TO BE REPAID OUT OF ANTICIPATED REVENUES SUCH AS SALES TAXES TODAY'S SALE WILL BE THE LARGEST EVER OF RAWS IN CALIFORNIA INCLUDED IN THE OFFERING ARE 12 BILLION OF SERIES A RAWS WHICH MATURE ON DEC 21 1994 AND 2 BILLION OF SERIES B WARRANTS WHICH MATURE ON JULY 26 1994 MOODY'S INVESTORS SERVICE INC HAS RATED THE 1994 WARRANTS MIG1 STANDARD & POOR'S CORP HAS RATED THE SECURITIES SP1 AND FITCH INVESTORS SERVICE INC HAS AS SIGNED AN F1PLUS RATING ALTHOUGH CALIFORNIA'S 1994 REVENUEANTICIPATION WARRANTS HAVE RECEIVED SOME OF THE HIGHEST SHORTTERM RATINGS GIVEN BY THE MAJOR RATING AGENCIES CONCERNS ABOUT THE STATE'S ECONOMIC CONDITION LINGER STILL STRUGGLING AFTER THE RECESSION CALIFORNIA HAS BEEN HURT BY A STRING OF DISASTERS INCLUDING LAST MONTH'S EARTHQUAKE IN LOS ANGELES FIRES AND MUDSLIDES LAST WEEK S&P REVISED ITS LONGTERM RATING OUTLOOK ON CALIFORNIA TO NEGATIVE FROM STABLE SAYING SIGNIFICANT ECONOMIC AND FISCAL PRESSURES CONTINUE TO HAMPER THE STATE'S EFFORTS TO MAINTAIN FINANCIAL STABILITY PROCEEDS FROM THE SERIES A RAWS WILL BE USED TO HELP ERASE CALIFORNIA'S BUDGET DEFICIT THE SHORTFALL STOOD AT 28 BILLION LAST JUNE WHEN THE STATE'S 18MONTH DEFICITELIMINATION PLAN WAS APPROVED CALIFORNIA HAS ALREADY WIPED OUT 16 BILLION OF THE DEFICIT AND THE SERIES A WARRANTS ARE EXPECTED TO COVER THE REMAINING 12 BILLION SAID ASSISTANT STATE TREASURER HAL GEIOGUE PROCEEDS FROM THE SERIES B WARRANTS WILL BE USED FOR THE MANAGEMENT OF CALIFORNIA'S CASH FLOW DURING THE REST OF THE STATE'S 1994 FISCAL YEAR AND THE START OF FISCAL 1995 CALIFORNIA'S FISCAL YEAR RUNS FROM JULY 1 TO JUNE 30 WE'RE OPTIMISTIC THAT THE YIELDS WILL BE BELOW 3 FOR BOTH SERIES OF RAWS SAID MR GEIOGUE MEANWHILE MANY MUNICIPAL BONDS DROPPED 1/8 POINT TO 1/4 POINT YESTERDAY AS THE DOLLAR TUMBLED AGAINST THE YEN IN THE FOREIGNEXCHANGE MARKETS PUSHING TREASURY PRICES LOWER PRICES OF MORTGAGE SECURITIES ENDED ABOUT EVEN AFTER A SLOW SESSION AMONG THE 65 SECURITIES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 1/32 LOWER AT 98 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 3/32 LOWER AT 98 31/32 AND 98 25/32 RESPECTIVELY INVESTORS OUTSIDE THE DEALER COMMUNITY WEREN'T ACTIVE AT ALL YESTERDAY TRADERS SAID THE PRIMARY MARKET AS EXPECTED WAS QUIET AS SPREADS TO TREASURYS HAVEN'T WIDENED SIGNIFICANTLY IF AT ALL IN THE PAST FEW SESSIONS UNDERWRITERS AREN'T ABLE TO JUSTIFY CREATING NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS BECAUSE BUYING EXPENSIVE MORTGAGE COLLATERAL MEANS LESS OF A PROFIT ON THE REMIC THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9402150134 940215 WHO'S NEWS CONTINENTAL MATERIALS CORP CONTINENTAL MATERIALS CORP CHICAGO THOMAS H CARMODY WAS NAMED TO THE BOARD BRINGING THE TOTAL NUMBER OF DIRECTORS TO NINE AT THIS HOLDING COMPANY INVOLVED IN THE HEATING AND AIR CONDITIONING INDUSTRIES MR CARMODY 47 YEARS OLD IS VICE PRESIDENT FOR US OPERATIONS OF REEBOK INTERNATIONAL LTD 9402150133 940215 MICHAEL BAKER UNIT CONTRACTS PITTSBURGH MICHAEL BAKER CORP SAID ITS BAKER & ASSOCIATES UNIT SIGNED FIVE CONTRACTS TOTALING 22 MILLION FOR DESIGN SERVICES WITH THE DEFENSE DEPARTMENT THE ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES COMPANY SAID THE CONTRACTS DO NOT INCLUDE ANY CONSTRUCTION SERVICES INCLUDED ARE AN 116 MILLION CONTRACT FOR ENVIRONMENTAL ASSESSMENT AND DESIGN SERVICES FOR DEFENSE DEPARTMENT DEPENDENT SCHOOLS WORLDWIDE AND A 45 MILLION MASTER PLANNING SERVICES CONTRACT FOR THE BALTIMORE DISTRICT CORPS OF ENGINEERS 9402150132 940215 GLOBAL NATURAL RESOURCES INC HOUSTON GLOBAL NATURAL RESOURCES INC SAID IT SUCCESSFULLY COMPLETED A NATURALGAS WELL IN THE GULF OF MEXICO OFFSHORE TEXAS GLOBAL SAID ITS WELL NO 2 ON HIGH ISLAND BLOCK 23L TESTED AT FIVE MILLION CUBIC FEET OF GAS AND 173 BARRELS OF CONDENSATE A DAY FROM DEPTHS OF 10086 TO 10173 FEET THE OIL AND GAS COMPANY SAID THE WELL WILL BEGIN PRODUCTION IN THE SECOND QUARTER GLOBAL HAS A 50 WORKING INTEREST IN THE WELL WHICH IT OPERATES CLOSELY HELD HALLHOUSTON OIL CO HOLDS A 20 WORKING INTEREST APACHE CORP HOLDS 20 AND EDISTO EXPLORATION & PRODUCTION CO A UNIT OF EDISTO RESOURCES CORP HOLDS 10 9402150131 940215 TECHNOLOGY & HEALTH BIG HMO GROUP JOINS DRIVE TO LIFT VACCINATION RATES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A BIG TRADE GROUP FOR HEALTH MAINTENANCE ORGANIZATIONS IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG US CHILDREN THE GROUP HEALTH ASSOCIATION OF AMERICA SAID MORE THAN 250 HMOS WILL WORK TOWARD DEVELOPING STRATEGIES FOR RAISING VACCINATION RATES TO 90 BY 1996 CURRENTLY ABOUT 60 OF CHILDREN ARE FULLY IMMUNIZED WITH DIPHTHERIATETANUSPERTUSSIS OR DTP POLIO AND MEASLESMUMPSRUBELLA VACCINES AND ONLY ABOUT 40 OF ALL CHILDREN GET THEM ON THE RECOMMENDED SCHEDULE ONE RESULT IN THE THREE YEARS ENDED IN 1991 SOME 136 CHILDREN DIED IN MEASLES OUTBREAKS THAT PUBLIC HEALTH OFFICIALS SAY COULD HAVE BEEN PREVENTED WITH BETTER VACCINATION RATES LEGISLATION AIMED AT ACHIEVING THE 90 GOAL WAS PASSED BY CONGRESS LAST YEAR AND OFFICIALS AT THE NATIONAL VACCINE PROJECT IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FIGURED HMOS WHICH EMPHASIZE PREVENTIVE CARE COULD HELP LEAD THE EFFORT WE NEED SOMEONE OUT FRONT TO DEMONSTRATE THAT IT'S POSSIBLE TO DO IT SAID ANTHONY ROBBINS OF THE NATIONAL VACCINE PROJECT UNDER THE PROGRAM PARTICIPATING HMOS WILL DETERMINE THEIR 1993 VACCINATION RATES FOR THEIR MEMBERS TO ESTABLISH A BASELINE SET ANNUAL GOALS FOR IMPROVEMENT AND REPORT ON STRATEGIES THAT WORK AND THOSE THAT DON'T SAID PAMELA MIDDLESTAT DIRECTOR OF MEDICAL AFFAIRS AT GHAA BY DISSEMINATING SUCH INFORMATION EVEN AMONG HMOS THAT MIGHT COMPETE IN LOCAL MARKETS THE HOPE IS THAT OVERALL IMMUNIZATIONS WILL INCREASE AND THAT MODELS FOR BOTH HMOS AND NONHMO ORGANIZATIONS CAN BE DEVELOPED HMOS THAT SERVE MEDICAID PATIENTS WILL BE AMONG THE PARTICIPANTS EXPERIENCE AT SOME 20 HMOS OPERATED BY UNITED HEALTHCARE ILLUSTRATES SOME OF THE HURDLES FACING THE INITIATIVE EVEN THOUGH ALL THE HMOS PROVIDE FREE VACCINES RATES AVERAGE ABOUT 65 TO 70 DR NEWCOMER SAID A STUDY SHOWED THAT PHYSICIANS FREQUENTLY MISSED OPPORTUNITIES TO VACCINATE CHILDREN WHEN THEY WERE BROUGHT IN FOR OTHER REASONS BUT RESCHEDULING A VISIT WAS DIFFICULT BECAUSE WHILE PARENTS CAN GET TIME OFF FROM WORK TO TAKE A SICK CHILD TO A DOCTOR THEY CAN'T GET TIME OFF TO TAKE A WELL CHILD FOR A SHOT 9402150130 940215 POLITICS & POLICY IS VIRGINIA FOR OLLIELOVERS ABSOLUTELY NOT SAY REAGAN AIDES OTHERS OPPOSING SENATE BID BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL ARLINGTON VA RAGTAG FORCES OPPOSED TO OLIVER NORTH'S US SENATE BID ARE DESPERATELY SEEKING A FEW GOOD MEN AND WOMEN TO ATTEND A CONVENTION IN JUNE THAT WILL NOMINATE THE REPUBLICAN PARTY'S CANDIDATE FOR THE JOB THE UPINARMS INCLUDE COLLEGE KIDS LED BY THE SON OF A FORMER REPUBLICAN GOVERNOR LOADED WITH REPRINTS OF A DAMAGING ANTINORTH ARTICLE FROM THE CONSERVATIVE READER'S DIGEST THEY'RE KNOCKING ON DOORS IN NORTHERN VIRGINIA SEEKING SUPPORT EXREAGAN ADMINISTRATION OFFICIALS INCLUDING SECRETARY OF STATE GEORGE SHULTZ AND DEFENSE SECRETARY FRANK CARLUCCI ALARMED AT THE NORTH JUGGERNAUT THEY'RE WRITING CHECKS TO HELP JIM MILLER WHO WAS PRESIDENT REAGAN'S BUDGET DIRECTOR AND IS MR NORTH'S ONLY SIGNIFICANT GOP OPPONENT DAN CAROL A FORMER OPPOSITIONRESEARCH SPECIALIST FOR THE DEMOCRATIC PARTY HE IS BURROWING THROUGH RECORDS AND DOCUMENTS LOOKING FOR DIRT ON MR NORTH THE FORMER MARINE CORPS LIEUTENANT COLONEL WHO AS A NATIONAL SECURITY COUNCIL STAFFER HELPED TO RUN A COVERT ARMSSUPPLY OPERATION TO SUPPORT ANTISANDINISTA GUERRILLAS IN NICARAGUA THAT WAS PARTIALLY FUNDED BY PROCEEDS FROM THE SECRET SALE OF ARMS TO IRAN MR CAROL HAS FORMED A COMMITTEE CALLED OPERATION LAST LAUGH INDEPENDENT EXPENDITURE OR OLLIEPAC TO SPREAD THE BAD NEWS AND FINALLY DUKE THE PILLPOPPING WILD TURKEYSWILLING CHARACTER IN THE DOONESBURY COMIC STRIP HE'S PACKING UP HIS ASSAULT PISTOL AND HEADING THIS WAY PRESUMABLY TO EMBARRASS THE NORTH ENTOURAGE WHILE OSTENSIBLY TRYING TO HELP IT BY ENLISTING AS A BODYGUARD VIRGINIA REPUBLICANS LIKE TO SAY THEIR CONVENTIONS ARE THE WORLD'S LARGEST DEMOCRATIC GATHERINGS THIS YEAR THEY WORRY THE HALL WON'T BE BIG ENOUGH TO HOLD EVERYBODY MORE THAN 10000 PEOPLE MAY SHOW UP OWING TO A WIDEOPEN SELECTION PROCESS AND THE INTEREST STIRRED UP BY MR NORTH'S CANDIDACY MOST OBSERVERS SAY MR NORTH A SHREWD CHARMING PERFORMER ON THE STUMP ALMOST CERTAINLY WILL WALK AWAY WITH THE CONVENTION'S ENDORSEMENT TO OPPOSE THE LIKELY WINNER OF THE DEMOCRATIC PARTY PRIMARY INCUMBENT SEN CHARLES S ROBB BUT THE FORCES ARGUING THAT MR NORTH DOESN'T DESERVE TO BE A MEMBER OF THE CONGRESS HE ADMITS HE LIED TO ARE SLOWLY WINNING SOME SERIOUS POINTS A MASONDIXON/MEDIA RESEARCH POLL TAKEN LATE LAST MONTH SHOWED MR ROBB DEFEATING MR NORTH 49 TO 32 IN AUGUST OF LAST YEAR MR NORTH TRAILED BY ONLY NINE POINTS BUT MR NORTH IS CONTROVERSIAL EVEN AMONG GOP STALWARTS NOTHING BEING USED AGAINST HIM HURTS MORE THAN AN ARTICLE BY RACHEL WILDAVSKY IN THE JUNE 1993 READER'S DIGEST THE TITLE WAS DOES OLIVER NORTH TELL THE TRUTH AND THE ANSWER UNEQUIVOCALLY WAS NO THE STORY WAS COMMISSIONED BY KENNETH Y TOMLINSON THE MAGAZINE'S EDITOR IN CHIEF WHO SERVED IN THE REAGAN ADMINISTRATION AS DIRECTOR OF THE VOICE OF AMERICA I'D HEARD OVER THE YEARS FROM PEOPLE WHO WORKED WITH NORTH THAT HE WAS NEVER WHAT HE APPEARED TO BE MR TOMLINSON SAYS THERE WAS A CREDIBILITY PROBLEM THERE WE TALKED TO A LOT OF PEOPLE AND THEY ALL SAID THEY FELT HE HAD A SERIOUSLY FLAWED CHARACTER THE READER'S DIGEST STORY TRACED A NUMBER OF TALES THAT MR NORTH HAS TOLD BIG ONES AND LITTLE ONES MANY OF THEM INTIMATING A CLOSER RELATIONSHIP WITH MR REAGAN THAN LOYAL REAGANITES BELIEVE EVER EXISTED THE ARTICLE STUNG IN WAYS THAT NOTHING THAT HAD APPEARED IN THE NEW YORK TIMES OR THE WASHINGTON POST COULD HAVE DONE MR NORTH CALLS THE TIMES THE CRIMES AND THE POST THE COMPOST IN A LETTER TO LOYALIST FOLLOWERS HE SAID THE READER'S DIGEST HAS JOINED THESE OTHER PUBLICATIONS THIS PACK OF MEDIA JACKALS IN A VENGEFUL EFFORT TO DESTROY ME HE ALSO SAID IT WAS SIGNIFICANT THAT THESE ATTACKS HAD INTENSIFIED FOLLOWING PRESIDENT CLINTON'S PLAN TO ALLOW OPEN HOMOSEXUALS IN OUR ARMED FORCES MR TOMLINSON NOTES THAT THE SAME EDITION OF HIS MAGAZINE CARRIED AN ARTICLE OPPOSING THE CLINTON PLAN THE READER'S DIGEST ARTICLE HAS BECOME THE PRINCIPAL PIECE OF LITERATURE DISSEMINATED BY DOORTODOOR CANVASSERS ALMOST ALL OF THEM COLLEGE STUDENTS FOR A GROUP CALLED CLEAN UP CONGRESS THAT IS RUN BY WOODY HOLTON THE SON OF VIRGINIA'S FIRST GOP GOVERNOR LINWOOD HOLTON IT'S BEEN A VERY POWERFUL PIECE FOR US SAYS THE YOUNGER MR HOLTON IT'S ESPECIALLY EFFECTIVE WITH THOSE REPUBLICANS WHO BELIEVE IN THE NINTH COMMANDMENT THOU SHALT NOT BEAR FALSE WITNESS AGAINST THY NEIGHBOR MR MERRITT TO WHOM THE NORTH CAMPAIGN REFERS REQUESTS FOR COMMENT ON THE STOPOLLIE EFFORTS SAYS CLEAN UP CONGRESS HAS NO SUPPORT AMONG REPUBLICAN VOTERS ALL THEY'VE EVER DONE IS TRY TO DEFEAT REPUBLICAN CANDIDATES BUT THE OLD REAGAN HANDS WHO ARE BACKING MR MILLER CAN'T SO EASILY BE DISMISSED THEY ARE PARTICULARLY TROUBLED BY HIS CLAIMS ON MR REAGAN'S FRIENDSHIP AND AFFECTION HE WAS NEVER CLOSE TO THE PRESIDENT THEY ASSERT THERE'S ONLY ONE REAGAN REPUBLICAN IN THIS RACE SAYS LYN NOFZIGER WHO WAS MR REAGAN'S CALIFORNIA PRESS SECRETARY AND WHITE HOUSE POLITICAL DIRECTOR AND THAT'S JIM MILLER THE OTHER GUY MR NORTH IS NOT A REAGAN REPUBLICAN HE WAS NEVER A PART OF OUR ORGANIZATION MR REAGAN HIMSELF IS STAYING SILENT ON THE MATTER OBSERVING THE GOP 11TH COMMANDMENT THOU SHALT NOT SPEAK ILL OF A FELLOW REPUBLICAN THE 51YEAROLD MR MILLER SUCCEEDED DAVID STOCKMAN AS MR REAGAN'S BUDGET DIRECTOR AND SAW THE POWER OF THE JOB DIMINISH THOUGH MR MILLER WITH HIS BOISTEROUS MANNER AND LOUD WHISTLING WAS SOMETIMES HARD TO IGNORE IN RECENT YEARS MR MILLER HAS RUN CITIZENS FOR A SOUND ECONOMY A LOBBYING GROUP THAT HAS FOUGHT FOR LOW TARIFFS AND LOW TAXES BUT HAS COME UNDER CRITICISM FOR SOME OF ITS TACTICS WHEN THE ORGANIZATION CLAIMED THAT LOCAL OUTPOSTS OF SUCH ALLAMERICAN ORGANIZATIONS AS THE BOY SCOUTS GIRL SCOUTS MARCH OF DIMES AND AMERICAN HEART ASSOCIATION HAD SIGNED ON TO FIGHT DETROIT'S PUSH FOR STEEP TARIFFS ON FOREIGN MINIVANS MANY OF THE LOCAL GROUPS COMPLAINED THEY HAD BEEN MISLED MR MILLER'S MAIN PITCH IN HIS UPHILL SENATE CAMPAIGN IS THAT HE CAN WIN IN THE FALL AND THE CONTROVERSIAL MR NORTH CANNOT HE GENERALLY AVOIDS TAKING ON MR NORTH PERSONALLY THAT'S JUST WHAT DAN CAROL THE VETERAN OPPOSITIONRESEARCH SPECIALIST IS DEDICATED TO DOING EVERY MONTH OR SO HIS OLLIEPAC ISSUES A NEW CHAPTER OF OLLIE'S FOLLIES IN WHICH HE EXAMINES MR NORTH'S RECORD HE SHIPS IT OFF TO HIS CONTRIBUTORS AND TO MEMBERS OF THE MEDIA WHILE STOUTLY MAINTAINING THAT MR CAROL ISN'T A SERIOUS THREAT TO THE CAMPAIGN MR NORTH'S HANDLERS HAVE PUT TOGETHER A PACKET OF THEIR OWN CALLED DAN CAROL MUDSLINGER ON THE RUN MR MERRITT THE NORTH SPOKESMAN SAYS THE ANTIOLLIE FORCES MAY MAKE NOISE AND GATHER MEDIA ATTENTION BUT WILL BE DROWNED BY THE PRONORTH TIDES THAT WILL GIVE THEIR MAN THE NOMINATION COME JUNE PUT ALL THOSE ANTINORTH FOLKS IN A STRETCH LIMOUSINE HE SAYS AND SEND THEM DOWN TO THE CONVENTION 9402150129 940215 WHO'S NEWS COLEMAN SAYS RING TO RESIGN AS PRESIDENT WICHITA KAN COLEMAN CO SAID THAT ITS PRESIDENT AND CHIEF OPERATING OFFICER BOB RING WILL RESIGN EFFECTIVE MARCH 1 THE CAMPING SUPPLY COMPANY SAID IT DOES NOT INTEND TO FILL THE POSITIONS MR RING 51 YEARS OLD WASN'T AVAILABLE FOR COMMENT A 32YEAR COLEMAN VETERAN MR RING WAS PASSED OVER FOR THE JOB OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY BROUGHT IN A FORMER BLACK & DECKER CORP EXECUTIVE MIKE HAMMES TO SUCCEED RETIRING CHAIRMAN LAWRENCE M JONES AT THE START OF THE YEAR JOE NOLD SENIOR VICE PRESIDENT OF OPERATIONS CHARLES OGDEN SENIOR VICE PRESIDENT OF SALES AND DAVID STEARNS SENIOR VICE PRESIDENT OF MARKETING WILL REPORT DIRECTLY TO MR HAMMES FOLLOWING MR RING'S DEPARTURE COLEMAN IS A UNIT OF RONALD PERELMAN'S MACANDREWS & FORBES HOLDINGS INC IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING COLEMAN CLOSED AT 27875 DOWN 125 CENTS 9402150128 940215 SPAR AEROSPACE UNIT GETS PACT MISSISSAUGA ONT SPAR AEROSPACE LTD SAID ITS COMSTREAM SUBSIDIARY HAS RECEIVED A 10 MILLION CANADIAN DOLLAR US75 MILLION CONTRACT TO UPGRADE THE TELECOMMUNICATIONS SYSTEM OF INDONESIA IT SAID THE CONTRACT CALLS FOR SPAR TO SUPPLY INDONESIA'S PUBLIC COMMON CARRIER PT TELKOM WITH SATELLITEBASED TRUNKING EQUIPMENT TO PROVIDE TOLLQUALITY TELEPHONE SERVICES VIA 20 TRANSMISSION LOCATIONS THROUGHOUT THE ISLANDS OF INDONESIA THE CONTRACT IS FINANCED BY A LOAN FROM THE ASIAN DEVELOPMENT BANK SPAR ADDED 9402150127 940215 MARKETING & MEDIA DAVIDSON FISHERPRICE PACT TORRANCE CALIF DAVIDSON & ASSOCIATES INC A PUBLISHER OF EDUCATIONAL SOFTWARE SAID IT LICENSED THE FISHERPRICE LOGO AND PRODUCT NAMES FOR USE IN A NEW LINE OF MULTIMEDIA SOFTWARE FOR CHILDREN AGES THREE TO SEVEN FINANCIAL TERMS OF THE PACT WEREN'T DISCLOSED FISHERPRICE INC A MAKER OF INFANT AND PRESCHOOL TOYS IS A SUBSIDIARY OF MATTEL INC EL SEGUNDO CALIF 9402150126 940215 WHO'S NEWS AT&T APPOINTS FALOTTI TO DIRECT BUSINESS IN EUROPE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON TO HELP SPEED ITS INTERNATIONAL GROWTH AMERICAN TELEPHONE & TELEGRAPH CO HIRED A PROMINENT ITALIAN COMPUTER EXECUTIVE TO RUN ITS EUROPEAN BUSINESSES PIER CARLO FALOTTI 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF AT&T'S OPERATIONS IN EUROPE THE MIDDLE EAST AND AFRICA UNTIL RECENTLY MR FALOTTI WAS PRESIDENT AND CHIEF EXECUTIVE OF ASK GROUP INC A BIG BUT UNPROFITABLE COMPUTER SOFTWARE COMPANY BASED IN SANTA CLARA CALIF BUT HE'S BEST KNOWN AS AN EMPIRE BUILDER THE MAN WHO OVERSAW RAPID GROWTH IN EUROPE FOR DIGITAL EQUIPMENT CORP DURING THE 1980S AS ITS TOP EUROPEAN EXECUTIVE AMONG HIS GOALS AT AT&T MR FALOTTI SAID IN A TELEPHONE INTERVIEW WILL BE TO DISCUSS EXPANDING COLLABORATION AMONG AT&T FRANCE'S FRANCE TELECOM AND GERMANY'S DEUTSCHE BUNDESPOST TELEKOM FOR MORE THAN A YEAR THE THREE PHONE GIANTS HAVE BEEN HOLDING INCONCLUSIVE TALKS ON JOINTLY PROVIDING BUSINESSCOMMUNICATIONS SERVICES AT&T BASED IN NEW YORK WANTS THEM AS PARTNERS FOR A 350 MILLION FIVEYEAR PLAN IT HAS HATCHED TO EXPAND ITS COMMUNICATIONS NETWORK IN EUROPE BUT ANY SUCH ALLIANCE WOULD STIR A POLITICAL STORM IN PARIS BONN AND BRUSSELS HEADQUARTERS OF THE EUROPEAN UNION WITH MANY COMPETITORS LIKELY TO BRAND IT AS ANTICOMPETITIVE AND TO TRY TO GET REGULATORS TO BLOCK IT MR FALOTTI'S APPOINTMENT TO THE NEWLY CREATED POST IS PART OF A REORGANIZATION ANNOUNCED IN DECEMBER TO SPEARHEAD GROWTH ABROAD AT&T IS GROUPING ALL ITS DIVERSE OVERSEAS BUSINESSES INTO THREE UNITS WITH THEIR OWN CHIEF EXECUTIVES ONE EACH FOR EUROPE LATIN AMERICA AND THE ASIAPACIFIC REGION CURRENTLY EUROPE PROVIDES NEARLY 10 OF AT&T'S WORLDWIDE REVENUE PARTLY THROUGH SALES OF COMPUTERS TELEPHONE EXCHANGES AND OTHER ELECTRONICS PRODUCTS BUT FOR AT&T THE BIG PRIZE WOULD BE A CHUNK OF THE CONTINENT'S COMMUNICATIONSSERVICES MARKET THOUGH GRADUALLY OPENING TO FOREIGNERS SERVICES IN MOST EUROPEAN COUNTRIES ARE STILL DOMINATED BY ONE LOCAL PLAYER SUCH AS DEUTSCHE TELEKOM IN GERMANY THUS AT&T'S ADVANCES SO FAR HAVE BEEN IN A FEW DEREGULATED NICHES ISSUING TELEPHONE CREDIT CARDS AROUND EUROPE PROVIDING DATA COMMUNICATIONS IN BRITAIN OR HELPING RUN BASIC PHONE SERVICES IN UKRAINE AND PARTS OF POLAND AND RUSSIA AT DIGITAL FROM 1983 TO 1992 MR FALOTTI OVERSAW A NEARSIXFOLD GROWTH IN ITS ANNUAL REVENUE IN EUROPE TO 67 BILLION FROM ABOUT 12 BILLION AS THE EUROPEAN COMPUTER MARKET GREW AND DIGITAL WOOED NEW CUSTOMERS AND BOUGHT SOME SMALLER LOCAL COMPANIES IN HIS LAST YEAR THERE DIGITAL'S EUROPEAN OPERATIONS FELL INTO RED INK ALONG WITH THE REST OF THE MAYNARD MASS CORPORATION MR FALOTTI ANNOUNCED HIS RESIGNATION JUST BEFORE DIGITAL FOUNDER KENNETH OLSEN WAS OUSTED BY THE BOARD 9402150125 940215 TECHNOLOGY & HEALTH MICROSOFT SETS STOCK PURCHASE OF SOFTIMAGE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP STRENGTHENING ITS TIES WITH THE ENTERTAINMENT INDUSTRY REACHED AN AGREEMENT TO ACQUIRE A LEADING SUPPLIER OF TOOLS FOR HOLLYWOOD SPECIAL EFFECTS FOR ABOUT 130 MILLION IN STOCK MICROSOFT THE WORLD'S LARGEST SOFTWARE SUPPLIER SAID IT REACHED A DEFINITIVE AGREEMENT TO PURCHASE SOFTIMAGE INC A MONTREAL COMPANY THAT IS WIDELY CONSIDERED A LEADER IN SOFTWARE TOOLS THAT HELP MOVIE AND VIDEO MAKERS SPICE UP THEIR PRODUCTIONS WITH SURREAL OR FANTASTIC IMAGERY SOFTIMAGE'S TOOLS FOR INSTANCE WERE USED IN THE MAKING OF SPECIAL EFFECTS CONTAINED IN THE MOVIE JURASSIC PARK AND IN MANY VIDEO GAMES THE TERMS OF THE DEAL REQUIRE THE APPROVAL OF SOFTIMAGE'S SHAREHOLDERS BUT EMPLOYEES OWN ABOUT 30 OF THE COMPANY MICROSOFT'S OFFER WHICH WILL END UP AT 21 TO 24 A SHARE IS WELL ABOVE SOFTIMAGE'S RECENT STOCK PRICE OF ABOUT 15 A SHARE IN ITS FISCAL YEAR ENDED LAST OCTOBER SOFTIMAGE EARNED 29 MILLION ON SALES OF 289 MILLION ON THE NASDAQ STOCK MARKET YESTERDAY SOFTIMAGE CLOSED AT 15125 UP 125 CENTS MICROSOFT CLOSED AT 79125 UP 375 CENTS MICROSOFT BASED IN REDMOND WASH CURRENTLY DOESN'T OFFER ANY PROFESSIONAL TOOLS FOR MOVIEMAKING SO THE PURCHASE GIVES IT A BOOST AS IT TRIES TO INCREASE ITS PRESENCE IN ENTERTAINMENT BUSINESSES BUT THE FIT BETWEEN THE TWO COMPANIES IS ROUGH SOFTIMAGE MAKES ITS TOOLS FOR SILICON GRAPHICS INC'S BRAND OF WORKSTATIONS WHICH ARE SPECIALIZED COMPUTERS MICROSOFT DOESN'T OFFER ANY SOFTWARE FOR WORKSTATIONS AND A SOFTIMAGE EXECUTIVE ACKNOWLEDGED THAT SOFTIMAGE HAD NO PLANS TO ADAPT ITS SOFTWARE FOR PERSONAL COMPUTERS STILL THE DEAL REFLECTS THE ABILITY OF MICROSOFT WITH A BUOYANT STOCK AND CASH IN EXCESS OF 2 BILLION TO QUICKLY POSITION ITSELF AS A SUPPLIER TO BOTH PRODUCERS AND CONSUMERS OF VISUAL MEDIA IN A RECENT INTERVIEW MICROSOFT CHAIRMAN WILLIAM GATES SAID THAT THE COMPANY WAS VIGOROUSLY PURSUING GROWTH OPPORTUNITIES IN THE SOCALLED MULTIMEDIA FIELD WHERE SOUND IMAGES AND MOVING PICTURES ARE MESHED TOGETHER WITH THE HELP OF COMPUTERS AND SOFTWARE YESTERDAY CRAIG MUNDIE WHO OVERSEES MICROSOFT'S ADVANCED CONSUMERTECHNOLOGY GROUP SAID SOFTIMAGE'S TECHNOLOGY WILL HELP MICROSOFT SHARE IN MARKETS SPAWNED BY THE SOCALLED INFORMATION HIGHWAY 9402150124 940215 INTERNATIONAL ELF AQUITAINE WANTS TO REDUCE ITS STAKE IN REFINERY VENTURE SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID YESTERDAY IT WILL PURSUE PLANS TO BUILD A NEW 10MILLIONTON REFINERY AT LEUNA IN EASTERN GERMANY ONLY IF FUTURE PARTNERS IN THE VENTURE WILL ALLOW IT TO TAKE A MINORITY STAKE THE MOVE IS THE LATEST TWIST IN A DISPUTE BETWEEN ELF AND THE TREUHANDANSTALT THE GERMAN PRIVATIZATION AGENCY OVER THE EXTENT OF ELF'S COMMITMENT TO THE PROJECT ELF SAYS THAT ECONOMIC CONDITIONS HAVE CHANGED SINCE 1992 WHEN IT ORIGINALLY AGREED TO TAKE A TWOTHIRDS STAKE IN THE REFINERY PROJECT ITS PARTNER GERMAN TRADING COMPANY THYSSEN HANDELSUNION AG HAD SAID IT WOULD TAKE ONETHIRD ELF HAS SAID IT WANTS PARTNERS TO ALLEVIATE ITS BURDEN ELF AND THYSSEN ACQUIRED THE LEUNAWERKE AG REFINERY AND THE MINOL AG FILLINGSTATION NETWORK FROM THE TREUHANDANSTALT THEIR SELECTION AS THE WINNING BIDDER WAS LINKED TO COMMITMENTS TO MODERNIZE THE NETWORK UPGRADE THE EXISTING REFINERY AND BUILD A NEW PLANT AT LEUNA THE TOTAL INVESTMENT WAS ESTIMATED AT SIX BILLION MARKS 343 BILLION TO SEVEN BILLION MARKS AN ELF SPOKESMAN WOULDN'T SAY WHETHER THE COMPANY HAD ACTUALLY FOUND ANY OTHER PARTNERS WILLING TO PARTICIPATE ON A MINORITY OR OTHER BASIS A SPOKESWOMAN FOR TREUHAND SAID THE AGENCY HAD NO COMMENT OTHER THAN THAT TALKS WITH ELF ARE CONTINUING WITH THE NEXT MEETING SCHEDULED FOR THURSDAY 9402150123 940215 BUSINESS BRIEFS WILLIAMS COS' WILTEL COMMUNICATION SYSTEMS UNIT AGREED TO BUY OFFICE TELEPHONEEQUIPMENT SALES AND SERVICE OPERATIONS IN 29 STATES FROM BELLSOUTH CORP'S BELLSOUTH COMMUNICATION SYSTEMS UNIT TERMS WEREN'T DISCLOSED SERVICE CORP INTERNATIONAL AGREED TO ACQUIRE LE PINE HOLDINGS PROPRIETARY LTD MELBOURNE AUSTRALIA TERMS WEREN'T DISCLOSED MORRISON KNUDSEN CORP WON A CONTRACT VALUED AT 110 MILLION TO DESIGN AND DEVELOP A WASTEWATER TREATMENT PLANT IN PORT SAID EGYPT FIELDCREST CANNON INC SAID IT WILL SPEND 90 MILLION ON A NEW 328000SQUAREFOOT TOWEL WEAVING PLANT IN PHENIX CITY ALA ALEXANDER & ALEXANDER SERVICES INC ESTABLISHED A BUSINESS UNIT IN MEXICO CITY TO SUPPORT RISK AND INSURANCE NEEDS OF CUSTOMERS IN THE REGION IT RECENTLY PURCHASED AN 80 INTEREST IN ASESORES KENNEDY AGENTE DE SEGUROS SA MEXICO 9402150122 940215 CORRECTIONS & AMPLIFICATIONS TEXAS ISN'T THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITSTRANSFER SYSTEM AS WAS STATED IN AN ARTICLE FRIDAY MARYLAND ALREADY HAS A SYSTEM THE CLAIM THAT TEXAS WAS FIRST WAS MADE BY A SPOKESMAN FOR GTECH HOLDINGS CORP THE CONTRACT WINNER HORIZON HEALTHCARE CORP WILL PAY GREENERY REHABILITATION GROUP INC SHAREHOLDERS 025 SHARE OF HORIZON STOCK FOR EACH GREENERY SHARE HELD AN ARTICLE YESTERDAY INCORRECTLY STATED THAT GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE IDB MOBILE COMMUNICATIONS INC IS A JOINT VENTURE OF IDB COMMUNICATIONS GROUP INC AND TELEGLOBE INTERNATIONAL INC OF CANADA IN AN ARTICLE THURSDAY IDB COMMUNICATIONS WAS MISIDENTIFIED 9402150121 940215 RAWSTEEL OUTPUT FELL 29 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS FELL 29 LAST WEEK TO 1805000 TONS FROM 1859000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 06 FROM THE 1795000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 876 OF ITS CAPABILITY LAST WEEK COMPARED WITH 903 THE PREVIOUS WEEK AND 849 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9402150120 940215 FRANKLY VIENNESE ESCHEW VERBAL LINK TO THEIR WIENERS FRANKFURTERS HOWEVER RELISH RIGHT TO NAME A SAUSAGE AND THAT'S NO BOLOGNA BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA WIENER MAGAZINE IS NOT ABOUT HOT DOGS OH DEAR NO IT IS ABOUT THE LIFE AND TIMES OF VIENNA WHICH IN GERMAN IS CALLED WIEN AND THE CITY'S RESIDENTS KNOWN AS WIENERS IT HAS NEVER EVER PUBLISHED A PARAGRAPH ABOUT WIENERS FOR IN WIEN YOU SEE THERE ARE NO WIENERS CERTAINLY NOT SNIFFS GEORG BERNERT OF THE VIENNA BUTCHERS' GUILD NO WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF WIENERS OF COURSE NOT A WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF FRANKFURTERS SAYS MR BERNERT IN WIEN WE HAVE ALWAYS CALLED WIENERS FRANKFURTERS IN FRANKFURT THE FRANKFURTERS NATURALLY CALL THE VIENNA FRANKFURTER WHICH IS A MIXTURE OF BEEF AND PORK A WIENER BUT FRANKFURT HAS ANOTHER DACHSHUNDSHAPED SAUSAGE THIS ONE ALL PORK THAT THE FRANKFURTERS CALL A FRANKFURTER WHY NOT WE FRANKFURTERS HAVE NO PROBLEM CALLING A FRANKFURTER A FRANKFURTER BOASTS THEO WERSHOVEN GENERAL MANAGER OF THE GERMAN BUTCHERS' ASSOCIATION SOME CITIES HAVE A SOCCER TEAM THAT CARRIES THE NAME OF THE CITY AROUND THE WORLD FRANKFURT HAS A SAUSAGE ARE THE WIENERS NOT SO PROUD OF THEIR SAUSAGE IT'S EASY FOR THE FRANKFURTERS TO TALK FOR IT IS MUCH SIMPLER TO GO THROUGH LIFE AS A FRANKFURTER OR A HAMBURGER OR A BERLINER JELLY DOUGHNUT FOR THAT MATTER NONE OF THOSE NAMES HAVE TAKEN ON THE UNSAVORY MEANINGS IN OTHER LANGUAGES THAT WIENER HAS IN ENGLISH THUS PRESIDENT KENNEDY COULD STAND UP IN WEST BERLIN AND DECLARE HIMSELF TO BE A JELLY DOUGHNUT WHILE NO AMERICAN PRESIDENT WOULD RISE BEFORE AN ENTIRE CITY AND SHOUT ICH BIN EIN WIENER BUT THAT ISN'T WHY THE WIENERS CALL THE WIENER A FRANKFURTER NO ONE HERE IS INSULTED TO BE CALLED A WIENER WE'RE ALL WIENERS LAUGHS MR BERNERT TO EXPLAIN MR BERNERT PRODUCES A FILE STUFFED WITH SAUSAGE LORE AS HE OPENS IT YELLOWING PAPERS SPILL ONTO HIS DESK TAKING THE TALE BACK TO THE HEYDAY OF THE AUSTROHUNGARIAN MONARCHY IT IS 1789 JOHANN GEORG LAHNER A PENNILESS BUTCHER'S APPRENTICE IN GERMANY HOPS A BARGE FLOATING DOWN THE DANUBE TO SEEK HIS FORTUNE IN VIENNA IN HIS NEW HOME HE OPENS A HUMBLE MEAT SHOP ONE DAY IN 1805 HE THROWS SOME BEEF AND PORK TOGETHER INTO A POT STIRS IN A COMBINATION OF SPICES AND PRODUCES A NEW SAUSAGE AS A TRIBUTE TO FRANKFURT WHERE HE HAD LEARNED HIS SKILLS HE DUBS HIS CREATION THE FRANKFURTER WHICH IS JUST FINE WITH 19THCENTURY WIENERS RESIDENTS OF A CITY CONSIDERED THE EPITOME OF CIVILIZATION BESIDES IMPERIAL VIENNA ALREADY HAS A HEARTY GASTRONOMICAL AMBASSADOR THE WIENER SCHNITZEL NOT THAT THE WIENERS ARE SAUSAGE SNOBS ACTUALLY THE WIENERS LOVE THEIR FRANKFURTERS THEY EAT THEM BOILED FRIED OR GRILLED WITH MUSTARD KETCHUP OR HORSERADISH THEY EAT THEM WEARING TUXEDOS AND THEY EAT THEM WEARING LEDERHOSEN JOHANN STRAUSS CHOMPS ON FRANKFURTERS WHILE COMPOSING HIS WALTZES KAISER FRANZ II THE EMPEROR HIMSELF TOSSES THEM BACK FOR BREAKFAST A PRACTICE CONTINUED BY KAISER FRANZ JOSEPH WHO WASHES THEM DOWN WITH A COUPLE OF BEERS MEANWHILE THE SAUSAGE FROM WIEN IS MAKING ITS WAY THROUGH THE EMPIRE AND BEYOND IN THESE DISTANT UNCOUTH REACHES A GREAT PARADOX IS BORN THE SAUSAGE THAT THE WIENERS CALL A FRANKFURTER IS CALLED A WIENER FOR THE CITY WHENCE IT CAME BY EVERYONE ELSE SOON THE WIENERS THEMSELVES FORGET THAT THEIR FRANKFURTER CAME FROM WIEN SO IN 1955 THE BUTCHERS OF THE CITY TAKE IT UPON THEMSELVES TO REMIND EVERYONE WITH A BIG PARTY CELEBRATING THE WIENER FRANKFURTER'S 150TH BIRTHDAY THEY RENT THE VIENNA CONCERT HOUSE THE POLICE ORCHESTRA AND THE SLAUGHTERHOUSE BAND PLAY WALTZES THE CITY'S BUTCHERS DONATE MONEY TO THE VIENNA ORPHANAGE A POEM TITLED THE SAUSAGE REVUE IS RECITED COME FROM AUSTRIA EVERY YEAR EAT THE WURST AT 10 AM AND THEY WON'T FORGET AGAIN ALAS THE WIENERS FORGET AGAIN IN FACT MODERN WIENERS HAVE TAKEN TO STICKING THEIR FRANKFURTER IN A BUN AND CALLING IT OF ALL THINGS A HOT DOG IN FRANKFURT BY CONTRAST THE ALLPORK FRANKFURTER OCCUPIES AN HONORED PLACE ALMUTH WESTECKER PART OF A TEAM THAT NURTURES THAT CITY'S IMAGE ENTHUSIASTICALLY OFFERS A GLOSSY HARDCOVER BOOK PUBLISHED BY ONE OF THE CITY'S FRANKFURTER MAKERS DEDICATED TO THE SAUSAGE THE BOOK GLOWS WITH THE FRANKFURTERS' PRIDE IN THEIR FRANKFURTER IN 1905 FOR INSTANCE WHEN THE HESSIAN FIELDARTILLERY REGIMENT WAS GIVEN THE NAME FRANKFURT AN ARTIST PROUDLY PROPOSED THAT THE SOLDIERS WEAR EPAULETS DEPICTING A PAIR OF FRANKFURTERS AND A POT OF MUSTARD THEY NEVER DID IN 1929 THE FRANKFURTERS APPALLED THAT SAUSAGES OF LESSER QUALITY BEARING THEIR NAME WERE BEING MARKETED AROUND THE WORLD TRIED IN VAIN TO PROTECT THEIR SAUSAGES WITH A DESIGNATION OF ORIGIN TRADEMARK MEANING THAT ONLY BUTCHERS IN THE FRANKFURT REGION COULD REALLY MAKE FRANKFURTERS THE FRANKFURTERS STAND BY THEIR FRANKFURTERS WE DON'T HAVE SUCH LOFTY IDEALS AS THE KAISER CITY SAYS MS WESTECKER WINKING TOWARD WIEN WE HAVE NO ARISTOCRATIC TRADITION HERE WE APPRECIATE THAT THE FRANKFURTER IS A SYMBOL OF FRANKFURT IN VIENNA THERE IS NO BOOK NO TRADEMARK EXALTING THE WIENER AT CITY HALL THE BOASTING IS OF THE WIENER SCHNITZEL AND THE WIENER STRUDEL THE WIENER WALTZES AND THE WIENER OPERA PROBABLY ONE REASON WE'VE NEVER THOUGHT ABOUT PROMOTING WIEN WITH THE WIENER SHRUGS JUTTA WIPPLINGER OF THE VIENNA TOURIST BOARD IS THAT IN WIEN A WIENER IS A FRANKFURTER ONE OF THESE DAYS THOUGH THE WIENERS MAY BE FORCED TO OWN UP TO WHAT ONE OF THEIR RENDERING MACHINES WROUGHT AUSTRIA IS CAMPAIGNING TO JOIN THE EUROPEAN UNION WHICH IS CONTEMPLATING A LAW REGULATING DESIGNATION OF ORIGIN TRADEMARKS IF THE LAW IS ADOPTED RESERVING THE WORD FRANKFURTER ONLY FOR THE SAUSAGES MADE IN FRANKFURT AND IF AUSTRIA IS ACCEPTED INTO THE EU WELL THEN THEN SAYS DIETER STANG SALES DIRECTOR OF HANS WIRTH KG ONE OF ONLY THREE COMPANIES IN THE FRANKFURT AREA THAT MAKE THE TRUE FRANKFURTER THE VIENNESE WOULD HAVE TO CALL THEIR FRANKFURTERS WIENERS FOR THE WIENERS IT IS THE WURSTCASE SCENARIO 9402150119 940215 MARKETING & MEDIA ADVERTISING HANCOCK TEAMS WITH OLYMPICS TO SOFTSELL TRUST AND CREDIBILITY' BY KEVIN GOLDMAN A JAGUAR PEACEABLY COEXISTS WITH A LLAMA A WOLF BLITHELY IGNORES A SHEEP AN EAGLE GENTLY LANDS NEAR A RABBIT LEAVING THE FUZZYTAILED CREATURE UNDISTURBED THE TELEVISION SPOT WHICH COULD BE A PUBLIC SERVICE ANNOUNCEMENT FOR BROTHERHOOD IS ACTUALLY A COMMERCIAL FOR JOHN HANCOCK MUTUAL LIFE INSURANCE THE SUGARCOATED MESSAGE EVERY TWO YEARS THE WORLD'S COUNTRIES PUT ASIDE DIFFERENCES AND COME TOGETHER TO COMPETE IN THE OLYMPIC GAMES AT JOHN HANCOCK IT IS OUR HOPE THAT SOMEDAY THIS IS WHAT REAL LIFE WILL BE THE VOICEOVER SAYS MANY COMPANIES USE THE OLYMPICS TO PROMOTE THEIR OWN PROWESS OR PRODUCTS FOR INSTANCE INTERNATIONAL BUSINESS MACHINES' COMMERCIALS TELL HOW OLYMPICS OFFICIALS RELY ON IBM TECHNOLOGY TO RECORD ATHLETES' PERFORMANCE AND THERE'S NO MISTAKING WHAT'S BEING PITCHED IN COCACOLA'S OLYMPICTHEMED ADS HOWEVER JOHN HANCOCK AND ITS BOSTON AD AGENCY HILL HOLLIDAY CONNORS COSMOPULOS DECIDED TO ABANDON THE OBVIOUS BY GAMBLING ON A SIMPLE BUT ATTENTIONGRABBING SOFTSELL MESSAGE DAVID D'ALESSANDRO SENIOR VICE PRESIDENT OF JOHN HANCOCK FINANCIAL SERVICES THE PARENT COMPANY SEES THE OLYMPICS AS A MARKETING TOOL TO PUSH BRAND AWARENESS A FAMILIAR MANTRA ON MADISON AVENUE THE OLYMPICS REPRESENT THE HIGHEST LEVEL OF ATHLETIC ACHIEVEMENT TRUST AND CREDIBILITY HE SAYS SYMBOLIZING WHAT WE SELL IN OUR BUSINESS STILL SOME MARKETING EXPERTS QUESTION THE WISDOM OF SUCH A SUBTLE AD CAMPAIGN THE VIEWER IS MORE INTERESTED IN WHAT'S IN IT FOR ME' AND THIS COMMERCIAL DOESN'T ANSWER THAT QUESTION SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON NJ THERE IS NO REAL LINK BETWEEN HANCOCK AND THE CUSTOMER YES PEOPLE WILL ACCEPT THE MESSAGE BUT THIS IS A COMMERCIAL THAT COULD JUST AS EASILY BE FOR COKE OR ANY OTHER PRODUCT IT'S A NICE PLEASANT MESSAGE BUT I'M NOT SURE WHAT THE LONGTERM GAIN FOR HANCOCK WILL BE JOHN HANCOCK IS SPENDING ABOUT 7 MILLION TO ADVERTISE ON CBS'S PRIMETIME COVERAGE OF THE WINTER OLYMPICS FROM LILLEHAMMER NORWAY WHICH BEGAN SATURDAY THE 1994 WINTER OLYMPICS IS THE FIRST OF A FOURYEAR DEAL THAT BEGAN IN JULY 1993 IN THE CONTRACT TERMS OF WHICH WEREN'T DISCLOSED HANCOCK IS THE OFFICIAL LIFE INSURANCE SPONSOR OF THE GAMES A HANCOCK SPOKESMAN SAYS IT IS FAIR TO ASSUME THAT THE COMPANY WILL ALSO BUY COMMERCIAL TIME ON THE 1996 SUMMER GAMES IN ATLANTA WHICH WILL BE BROADCAST ON GENERAL ELECTRIC'S NBC NETWORK HANCOCK CAN'T PROMOTE ITS OTHER FINANCIAL SERVICES BECAUSE IT IS THE EXCLUSIVE LIFE INSURANCE SPONSOR ONLY THERE IS NO EXCLUSIVE FINANCIAL SERVICES SPONSOR A HANCOCK SPOKESMAN SAYS BECAUSE IT IS TOO EXPENSIVE HANCOCK SKIRTED THE ISSUE BY MAKING SOME OF ITS ADS GENERIC WITH THE SLOGAN REAL LIFE REAL ANSWERS THE SPOKESMAN NOTES ALL OUR SERVICES WILL GET A BOUNCE OUT OF THE ADS ALTHOUGH JOHN HANCOCK ADVERTISED ON THE OLYMPICS IN PAST YEARS EARLIER COMMERCIALS WERE PRODUCTORIENTED THIS TIME WHILE THE CREATIVE APPROACH VARIES ALL THE HANCOCK ADS ARE SENTIMENTAL AND LOWKEY IN FACT THREE OF THEM ARE DEVOID OF ANY PICTURES INSTEAD JUST A NAME AGE AND OCCUPATION POP UP ON A BLACK SCREEN AS A VOICEOVER READS OPTIMISTIC PROSE EXAMPLE ZOE COSTELLO A NINEYEAROLD THIRD GRADER SAYS THE COOLEST PART WERE A LOT OF ATHLETES MY AGE THE WHOLE WORLD WAS ROOTING FOR THEM IT MADE ME FEEL LIKE I COULD DO SOMETHING GREAT RIGHT NOW OTHER THAN THE TONE THE ADS STRIKINGLY RESEMBLE THOSE FROM AETNA LIFE & CASUALTY WHICH ALSO FEATURE WORDS ON AN OTHERWISE BLANK SCREEN WHETHER OR NOT THE ADVERTISING WORKS THE TIEIN WITH THE OLYMPICS ALREADY HAS HELPED BOOST INTERNAL INCENTIVE PROGRAMS AT HANCOCK THE COMPANY CONDUCTS CONTESTS IN WHICH TOPPERFORMING AGENTS WIN TRIPS TO SUCH SPOTS AS PARIS ROME AND HAWAII USUALLY ABOUT 60 AGENTS WHO RECEIVE 100000 IN COMMISSIONS THEIR FIRST YEAR MEANING THEY SELL ABOUT 250000 WORTH OF LIFEINSURANCE PREMIUMS WIN THE TRIPS THIS YEAR 120 AGENTS QUALIFIED TO MAKE THE TREK TO LILLEHAMMER MR D'ALESSANDRO SAYS THAT'S MOTIVATION HE BELIEVES THE OLYMPICS INCENTIVE HELPED THE COMPANY'S LIFE INSURANCE BUSINESS OUTPACE THE INDUSTRY HANCOCK CITING FIGURES FROM THE LIFE INSURANCE MARKETING AND RESEARCH ASSOCIATION IN FARMINGTON CONN SAYS ITS TOTAL LIFEINSURANCE SALES GREW 14 BETWEEN JANUARY AND NOVEMBER 1993 COMPARED WITH THE YEAREARLIER PERIOD WHILE THE INDUSTRY'S GROWTH RATE WAS ABOUT 3 THIS IS A SALESPUSH BUSINESS SAYS MR D'ALESSANDRO WE WANT OUR LOGO THE BOLD SIGNATURE OF MR HANCOCK MARRIED WITH THE OLYMPIC RINGS TOGETHER IT MAKES FOR A POTENT MARKETING DUO FORD MOTOR CO'S LINCOLNMERCURY DIVISION SIGNED UP TO ADVERTISE ON THE INTERNET NETWORK VIA A 24HOUR ELECTRONIC CAR SHOWROOM MARKING PERHAPS THE FIRST BY A MAJOR MARKETER TO REACH WIRED CONSUMERS ON THE GLOBAL COMPUTER NETWORK LINCOLNMERCURY IS SETTING UP SHOP ON THE ELECTRONIC NEWSSTAND AN ELECTRONIC MAGAZINESUBSCRIPTION SERVICE BROWSERS CAN CHOOSE TO ENTER THE CYBERSHOWROOM VIA THE NEWSSTAND'S MAIN MENU SAID JEFFREY DEARTH CHIEF EXECUTIVE OF THE ELECTRONIC NEWSSTAND AND PRESIDENT OF THE NEW REPUBLIC A WASHINGTON MAGAZINE PUBLISHER OTHER BUSINESS INFORMATION CENTERS ARE UNDER DISCUSSION HE SAID WITH ADVERTISERS IN AIRLINES FINANCIAL SERVICES AND COMPUTERS NEW REPUBLIC INC FOUNDED THE ELECTRONIC NEWSSTAND IN JULY AS A JOINT VENTURE WITH INTERNET CO A CAMBRIDGE MASS TECHNICAL SERVICES COMPANY THE SERVICE STARTED WITH EIGHT MAGAZINES REPRINTING ARTICLES FOR USERS TO READ FOR FREE AND ALSO TAKING SUBSCRIPTION ORDERS NOW 60 MAGAZINES PARTICIPATE AND THE NEWSSTAND AVERAGES 30000 ACCESSES A DAY MR DEARTH SAID LINCOLNMERCURY PLANS TO REPRINT CATALOGS AND BROCHURES CAR REVIEWS AND LEASING AND PRICING INFORMATION ABOUT ITS MODELS SAID KEVIN HOLOWICKI A VICE PRESIDENT AT LINCOLNMERCURY'S AD AGENCY YOUNG & RUBICAM IT'S NOT INTRUSIVE MR HOLOWICKI SAID WE MAY NOT BE FLOODED WITH INQUIRIES BUT THE ONES WE GET WILL BE FROM THE RIGHT PEOPLE ADVERTISERS WILL WATCH CLOSELY FOR NEGATIVE REACTION FROM INTERNET USERS MR DEARTH SAID HE ISN'T EXPECTING ANY NO ONE HAS TO GO IN THERE HE SAID IT'S A PASSIVE CONSUMERFRIENDLY APPROACH TO ADVERTISING THE COST TO LINCOLNMERCURY IS 17500 A YEAR HE SAID SMITH BARNEY SHEARSON FORMED LAST YEAR WITH THE MERGER OF SMITH BARNEY HARRIS & UPHAM AND SHEARSON LEHMAN BROS PUT ITS ESTIMATED 20 MILLION AD ACCOUNT IN REVIEW A COMPANY SPOKESMAN SAID CONFIRMING REPORTS IN TRADE PUBLICATIONS INCUMBENT OGILVY & MATHER A UNIT OF WPP GROUP IS DEFENDING THE ACCOUNT THE SPOKESMAN SAID LESS THAN A YEAR AFTER WINNING IT FOLLOWING THE MERGER OTHER AGENCIES CONTACTED ABOUT TAKING PART IN THE REVIEW ARE BBDO AND DDB NEEDHAM BOTH UNITS OF OMNICOM GROUP INTERPUBLIC GROUP'S MCCANNERICKSON YOUNG & RUBICAM AND SAATCHI & SAATCHI'S CMEKHBB INDUSTRY EXECUTIVES SAID SMITH BARNEY SHEARSON IS A UNIT OF TRAVELERS INC NEW YORK HEFTY MOBIL CHEMICAL CO A UNIT OF MOBIL CORP MOVED ITS ESTIMATED 7 MILLION HEFTY PLASTIC TRASH BAGS FROM MINNEAPOLIS AGENCY FALLONMCELLIGOTT TO JORDAN MCGRATH CASE & TAYLOR NEW YORK ACCORDING TO INDUSTRY EXECUTIVES MOBIL DECLINED TO COMMENT 9402150118 940215 TRACKING TRAVEL BY JAMES S HIRSCH THE BAD NEWS IS AIRLINES ARE RAISING THE PRICE FOR FREE TICKETS THE GOOD NEWS IS MILES HAVE NEVER BEEN MORE ABUNDANT AMR'S AMERICAN AIRLINES UAL'S UNITED AIRLINES AND USAIR A UNIT OF USAIR GROUP HAVE ALL INCREASED REDEMPTION LEVELS FOR DOMESTIC COACHCLASS TICKETS STARTING NEXT YEAR TO 25000 MILES FROM 20000 MILES AMERICAN INCREASED THE COST OF ITS DOMESTIC FIRSTCLASS TICKETS TO 45000 MILES FROM 40000 CONTINENTAL AIRLINES NORTHWEST AIRLINES AND AMERICA WEST AIRLINES WILL ALL FOLLOW SUIT PREDICTS RANDY PETERSEN EDITOR OF INSIDER FLYER WHY THE CHANGE THE NUMBER OF SOCALLED NONREVENUE PASSENGERS HAS BEEN RISING STEADILY AND STAND AT ABOUT 6 RAISING THE MILEAGE REQUIREMENTS WILL PRESUMABLY RESULT IN FEWER FREE TRIPS MEANTIME PASSENGERS ARE ABLE TO ACCUMULATE MILES WITHOUT EVER STEPPING ON AN AIRPLANE AS AIRLINES INCREASE THEIR PARTNERSHIPS WITH HOTELS CRUISE LINES TELEPHONE COMPANIES CREDITCARD ISSUERS AND OTHERS WE'VE NOT HAD ONE PRICE INCREASE IN 13 YEARS BUT LOOK AT THE VALUE WE DELIVER TO CUSTOMERS SAYS JAMES M GUYETTE UNITED'S EXECUTIVE VICE PRESIDENT FOR MARKETING NOTING THAT THE CARRIER HAS TIEINS WITH FIVE CRUISE LINES FOUR CARRENTAL COMPANIES AND HOTELS INCLUDING THE RITZCARLTON AIRLINES ALSO ARE REJIGGERING PROGRAMS TO TARGET SPECIFIC MARKETS OR CUSTOMERS UNITED IS LOWERING THE PRICE OF TWO FREE TICKETS TO HAWAII TO 100000 MILES FROM 120000 MILES NORTHWEST HAS ADDED 500MILE BONUSES FOR PASSENGERS WHO CONNECT AT ONE OF THE CARRIER'S HUBS DELTA AIR LINES IS REVAMPING ITS ENTIRE PROGRAM TENTATIVELY CALLED SKYMILES IT IS EXPECTED TO IMPOSE EXPIRATION DATES ON ITS MILES AND LOWER THE REDEMPTION LEVEL FOR A FREE DOMESTIC TICKET TO 25000 MILES FROM 30000 MILES EASTERN AIRLINES SHUT ITS OPERATIONS THREE YEARS AGO BUT A BITTER FEUD WITH MANY TRAVEL AGENTS IS JUST HEATING UP THE DISPUTE LAYS BARE THE OFTEN UNEASY RELATIONSHIP BETWEEN THE AIRLINE INDUSTRY AND ITS DISTRIBUTORS EASTERN SEEKING TO SETTLE ITS ESTATE IN BANKRUPTCY COURT RECENTLY SUED 7000 TRAVEL AGENCIES ALLEGING THAT THEY WITHHELD PAYMENTS TO THE CARRIER ON TICKETS THEY SOLD THE CLAIMS SOME OF WHICH DATE TO 1988 TOTAL 116 MILLION EASTERN SAID IT WOULD SETTLE WITH EACH AGENCY FOR 75 OF ITS CLAIM WHILE THE AVERAGE CLAIM IS LESS THAN 1700 SOME AGENTS ARE CRYING FOUL THEY SAY THEY CAN'T PROVE THEIR INNOCENCE BECAUSE THEY DON'T KEEP RECORDS FOR MORE THAN A YEAR OR TWO THEY ALSO SAY EASTERN NEVER SENT THEM DEBIT MEMOS FOR UNPAID BILLS A POINT EASTERN DISPUTES WE GAVE THEM THOUSANDS AND THOUSANDS OF DOLLARS IN BUSINESS AND TO HAVE THEM BITE US IN THE NOSE LIKE THIS IS REALLY NASTY SAYS JOHN SZYMANSKI OWNER OF PARADISE TRAVEL SERVICE IN BOSTON WHICH EASTERN SAYS OWES 600 TO THE ESTATE MR SZYMANSKI SAYS HE OWES NOTHING SO FAR ABOUT 1500 AGENTS HAVE SETTLED AGENTS WHO DON'T PAY AND WANT TO AVOID COURT CAN EITHER SUBMIT TO BINDING ARBITRATION OR GO TO MEDIATION THE ASSOCIATION OF RETAIL TRAVEL AGENTS A TRADE GROUP IS URGING MEMBERS TO FIGHT EASTERN ON PRINCIPLE IF AGENTS PAY UP OTHER DEFUNCT AIRLINES WILL COME KNOCKING EASTERN SAYS IT IS OBLIGED BY THE COURT TO SETTLE ALL CLAIMS RELATED TO THE ESTATE MOREOVER HONEST AGENTS SHOULD BE GRATEFUL THAT EASTERN IS FORCING THE DEADBEATS TO PAY UP THE AIRLINE SAYS THIS MUST BE VIEWED AS LEVELING THE PLAYING FIELD SAYS JOHN SICILIAN EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF EASTERN HIGHER RENTAL RATES ON 1994 AUTOS MAY VEX CARRENTAL CUSTOMERS BUT THE CARS ARE PROBABLY SAFER THAN EVER BEFORE NATIONAL CAR RENTAL SYSTEM A UNIT OF GENERAL MOTORS REPORTS THAT 99 OF ITS FLEET HAS ANTILOCK BRAKES AND AUTOMATIC LOCKS COMPARED WITH 38 AND 48 RESPECTIVELY TWO YEARS AGO AIRBAGS ARE POPPING UP SO TO SPEAK ALL OVER THE PLACE HERTZ SAYS 80 OF ITS FLEET HAS DRIVERSIDE BAGS THEY'RE IN TWOTHIRDS OF THE CARS AT BUDGET RENT A CAR A UNIT OF BEECH HOLDINGS FIVE YEARS AGO YOU'D HAVE A DIFFICULT TIME FINDING AIRBAGS IN RENTAL CARS SAYS TOM HAWKES SENIOR VICE PRESIDENT OF FLEET OPERATIONS AT BUDGET RENTALCAR COMPANIES SAY THEY WANT THEIR CUSTOMERS DRIVING THE SAFEST CARS POSSIBLE AND IN SOME CASES THAT MEANS PHASING OUT SMALLER CARS LACKING THE BEST SAFETY GIZMOS NATIONAL FOR EXAMPLE IS PARTING WITH GM'S GEO METROS AND SUNBIRDS BECAUSE THOSE MODELS DON'T HAVE ANTILOCK BRAKES BUT MORE THAN ALTRUISM IS AT WORK HERE FOR THE RENTAL COMPANIES THEY TYPICALLY SELL BACK THEIR CARS TO THE AUTO MAKERS WHO FIND FAR GREATER VALUE IN VEHICLES WITH SAFETY FEATURES THE ECONOMIC ANALYSIS IS REAL SIMPLE MR HAWKES AT BUDGET SAYS DO WE WANT CARS THAT CAR MAKERS WANT TO BUY BACK OR DO WE WANT CARS THAT WE'LL HAVE TO SELL ON OUR OWN AVIS HAS EQUIPPED VEHICLES IN SEVERAL CITIES INCLUDING NEW YORK DETROIT AND SEATTLE WITH HEADLIGHTS THAT AUTOMATICALLY TURN ON WHEN THE ENGINE IS RUNNING IT'S ALSO TESTING IN TWO CITIES A NEW GLASS COATING THAT SUPPOSEDLY HELPS WIPERS SWEEP OFF WATER AND ALL OF AVIS'S 1994 MINIVANS WILL HAVE BUILTIN CHILDSAFETY SEATS IF TWO PEOPLE RENT A CAR A FEE TYPICALLY IS ASSESSED ON THE SECOND DRIVER UNLESS THAT PERSON IS A SPOUSE OR BUSINESS COLLEAGUE OUT AND ABOUT A PUBLICATION FOR GAY TRAVELERS APPLAUDS AVIS FOR BEING THE FIRST MAJOR RENTAL COMPANY TO WAIVE THE FEE FOR SAMESEX PARTNERS AMERICAN EXPRESS MAILS CARD MEMBERS A TWOPAGE CUSTOMERSATISFACTION SURVEY AND INCLUDES A DOLLAR BILL AS AN EXPRESSION OF GRATITUDE NORTHWEST AIRLINES IS DROPPING OUT OF AMERICAN EXPRESS'S MEMBERSHIP MILES PROGRAM WHEREBY CARD MEMBERS ACCUMULATE MILES BASED ON EXPENDITURES 9402150117 940215 HOW TO LOSE FEDERAL MILLIONS AND OWE NOTHING BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL A LOOPHOLE IN A FEDERAL SMALLBUSINESS LENDING PROGRAM HELPED AN ENTREPRENEUR NAMED PETER VAN OOSTERHOUT TO CHARGE AMERICAN TAXPAYERS 28 MILLION FOR HIS OWN BAD INVESTMENTS REGULATORS SAY MR VAN OOSTERHOUT 62 YEARS OLD WAS ALSO ABLE TO USE SOME OF THIS MONEY TO INVEST IN A TINY SALT LAKE CITY COMPANY WHOSE STOCK PRICE HAS SOARED EVEN AS IT HAS BEEN LOSING MONEY MR VAN OOSTERHOUT GOT THE MAJOR PART OF HIS INVESTMENT FUNDS FROM THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM IN WHICH PRIVATELY OWNED FIRMS KNOWN AS SBICS USE A COMBINATION OF FEDERALLY GUARANTEED DEBT AND PRIVATE CAPITAL TO HELP FINANCE SMALL BUSINESSES CURRENTLY SOME 280 SBICS HAVE ABOUT 850 MILLION IN GOVERNMENTBACKED DEBT AS WELL AS 23 BILLION IN PRIVATE FUNDS THE SBIC PROGRAM WAS CREATED BY CONGRESS IN 1958 AS A WAY TO HELP PROMOTE THE GROWTH OF SMALL BUSINESSES TO GET SBIC STATUS INVESTMENT FIRMS HAVE TO APPLY TO THE SMALL BUSINESS ADMINISTRATION WHICH OVERSEES THE PROGRAM SBICS HAVE HELPED HUNDREDS OF SMALL BUSINESSES GROW AND PROSPER INCLUDING APPLE COMPUTER INC AND FEDERAL EXPRESS CORP THE PROBLEM IS THAT DURING THE 1980S WHEN MAKING RISKY INVESTMENTS WAS COMMONPLACE HUNDREDS OF INVESTMENTS WENT SOUR DOZENS OF SBICS SANK AND TAXPAYERS WERE LEFT FOOTING A BILL THAT HAS BEEN ESTIMATED AT SEVERAL HUNDRED MILLION DOLLARS THE SBA HAS HAD TO GO TO COURT IN RECENT YEARS TO SEIZE CONTROL OF SOME SIX DOZEN FAILING SBICS IN ORDER TO SELL ASSETS AND TRY TO RECOVER AT LEAST SOME OF THE TAXPAYERS' MONEY PROBABLY NO SINGLE CASE BETTER EXEMPLIFIES THE ABUSES IN THE PROGRAM SAY SBA OFFICIALS THAN THAT OF MR VAN OOSTERHOUT AND HIS SBIC RIVER CAPITAL CORP OF WHICH HE IS PRESIDENT AND HAS BEEN A MAJOR OWNER REGULATORS SAY MR VAN OOSTERHOUT HAD BEEN A LEADING FIGURE IN THE SBIC INDUSTRY EVEN BEFORE HE BECAME PRESIDENT AND PART OWNER OF RIVER CAPITAL IN 1983 HE WAS CHAIRMAN OF THE NATIONAL ASSOCIATION OF SMALL BUSINESS INVESTMENT COMPANIES HE HELPED ESTABLISH RIVER CAPITAL BASED IN SPRINGFIELD VA A FEW YEARS LATER AND WITH ABOUT 7 MILLION IN PRIVATE FUNDS AND 28 MILLION FROM THE GOVERNMENT HE DEVELOPED IT INTO ONE OF THE COUNTRY'S BIGGEST SBICS FINANCING DOZENS OF COMPANIES THE SBA WASN'T ABLE TO RECOVER ANY TAXPAYER DOLLARS IN THE CASE OF RIVER CAPITAL BEFORE IT COULD SEIZE CONTROL OF THE FOUNDERING FIRM RIVER CAPITAL FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN 1989 AND THERE REGULATORS SAY IS THE LOOPHOLE CONGRESS DESIGNED THE SBIC PROGRAM TO MAKE THE GOVERNMENT A SUBORDINATE DEBTOR SO IN BANKRUPTCY REORGANIZATION PROCEEDINGS THE DEBTS OWED TO THE GOVERNMENT CAN BE CANCELED IF THE COURT FINDS THERE ISN'T ENOUGH MONEY TO PAY OFF ALL THE CREDITORS THE AVAILABILITY OF BANKRUPTCY OFFERS A SWEET SITUATION FOR THE SBIC OWNER IN WHICH THE GOVERNMENT BECOMES THE CONVENIENT FALL GUY SAYS MARTIN TECKLER DEPUTY GENERAL COUNSEL FOR THE SBA IT IS A BIG PROBLEM BANKRUPTCY COURT ELIMINATED RIVER CAPITAL'S 28 MILLION FEDERAL DEBT FOURTEEN OTHER SBICS HAVE ALSO FILED FOR BANKRUPTCY IN THE PAST SEVERAL YEARS SBA OFFICIALS SAY INCLUDING RIVER CAPITAL MORE THAN 70 MILLION OF FEDERAL OBLIGATIONS HAVE BEEN OR ARE EXPECTED TO BE WIPED OUT SAYS MR TECKLER FEDERAL OFFICIALS SAY THEY BELIEVE FRAUD KEPT THEM FROM SEEING THE SBIC'S PROBLEMS SOONER MR VAN OOSTERHOUT IS FACING CRIMINAL CHARGES IN A CLEVELAND FEDERAL COURT ON FRAUD CONSPIRACY AND EXTORTION CHARGES STEMMING FROM HIS OPERATION OF RIVER CAPITAL HIS TRIAL IS EXPECTED TO BEGIN SOMETIME THIS YEAR MR VAN OOSTERHOUT HAS PLEADED NOT GUILTY TO THE CHARGES NEITHER HE NOR HIS ATTORNEY RETURNED PHONE CALLS SEEKING COMMENT THE INDICTMENT CHARGES HIM WITH BEING PART OF A SCHEME TO MISREPRESENT THE FINANCIAL HEALTH OF RIVER CAPITAL AND ITS INVESTMENT PORTFOLIO IN ORDER TO KEEP FEDERAL MONEY FLOWING FOR INSTANCE TWO OF THE PORTFOLIO COMPANIES ALLEGEDLY CLAIMED EQUIPMENT THAT THEY DIDN'T ACTUALLY OWN ALONG WITH THREE OTHERS MR VAN OOSTERHOUT ALSO ALLEGEDLY TRIED TO EXTORT MONEY FROM A BUSINESSMAN WHO SUPPOSEDLY WAS IN DEBT TO ONE OF THEM THE FOUR ARE CHARGED WITH SETTING FIRE TO THE BUSINESSMAN'S CAR AND THREATENING HIS WIFE ACCORDING TO THE INDICTMENT RIVER CAPITAL IS STILL IN BUSINESS THOUGH IT IS NO LONGER IN THE SBIC PROGRAM THE COMPANY EMERGED FROM BANKRUPTCY IN 1991 STILL IN POSSESSION OF SOME OF ITS FEDERALLY BACKED INVESTMENTS ONE OF THOSE INVESTMENTS HAS TURNED INTO A WINNER FOR A 1 MILLION INVESTMENT STARTING IN THE EARLY 1980S RIVER CAPITAL'S PREDECESSOR WHICH MR VAN OOSTERHOUT HELPED OPERATE PICKED UP ABOUT 17 MILLION SHARES OF ALANCO ENVIRONMENTAL RESOURCES CORP A SALT LAKE CITY COMPANY THAT OWNS SOME DORMANT MINES AND MANUFACTURES POLLUTIONCONTROL EQUIPMENT MR VAN OOSTERHOUT HAS BEEN AN ALANCO DIRECTOR SINCE 1983 A WOMAN WHO ANSWERED THE PHONE AT RIVER CAPITAL'S OFFICE SAID ALL QUESTIONS WOULD HAVE TO BE DIRECTED TO MR VAN OOSTERHOUT ALANCO'S STOCKMARKET PERFORMANCE CONTRASTS SHARPLY WITH ITS FINANCIAL PERFORMANCE WITH 194 MILLION SHARES OUTSTANDING ITS MARKET VALUE HAS SURGED TO ABOUT 90 MILLION MORE THAN A THREEFOLD INCREASE IN THE PAST YEAR YET IN THE PAST FOUR YEARS THE COMPANY HAS REPORTED ACCUMULATED LOSSES OF 8 MILLION INCLUDING A 41 MILLION LOSS FOR FISCAL 1993 ENDED JUNE 30 REVENUES FOR THAT YEAR WERE JUST 10987 ALANCO HOWEVER HAS PRODUCED A STEADY STREAM OF UPBEAT PRESS RELEASES PARTICULARLY CONCERNING VARIOUS POLLUTIONCONTROL DEALS IN CHINA INCLUDING ONE POTENTIAL MULTIBILLION DOLLAR CONTRACT ALANCO HAS ALSO ANNOUNCED A SERIES OF FINANCING ARRANGEMENTS OVER RECENT YEARS MANY OF WHICH NEVER CAME TO PASS AND ONE THAT DID A 72 MILLION CREDIT LINE WAS ARRANGED BY ONE MARIO RENDA THROUGH A NEW YORK CITY FIRM CALLED FINANCIAL SECURITY CORP IN THE EARLY 1980S MR RENDA WAS A DEPOSIT BROKER WHO PLACED BILLIONS OF DOLLARS OF DEPOSITS IN THRIFTS AND BANKS AROUND THE US HE WAS CONVICTED OR PLEADED GUILTY IN 1987 IN THREE DIFFERENT COURTS TO CRIMES RANGING FROM BANK FRAUD TO RACKETEERING TO TAX EVASION PROSECUTORS AND INVESTIGATORS CONTENDED THAT MR RENDA'S CRIMES CONTRIBUTED TO THE DEMISE OF SEVERAL DOZEN THRIFTS AND BANKS PARTLY BY ARRANGING FOR FRAUDULENT LOANS BRENT DYER FINANCIAL SECURITY'S PRESIDENT DIDN'T RETURN REPEATED PHONE CALLS A WOMAN ANSWERING THE PHONE AT FINANCIAL SECURITY IDENTIFIED MR RENDA AS A VICE PRESIDENT OF THE COMPANY MR RENDA DENIES THE TITLE BUT ADMITS HE WAS FOR A TIME IN 1992 ALANCO'S MARKETING DIRECTOR AN ALANCO SPOKESMAN SAYS THE SEC HAS BEEN INVESTIGATING THE COMPANY'S ANNOUNCEMENTS BUT THAT THE COMPANY HAS DONE NOTHING WRONG SEC OFFICIALS DECLINE TO COMMENT THE SBA HAS BEEN URGING CONGRESS TO BAR SBICS FROM SEEKING BANKRUPTCY PROTECTION A BANKRUPTCY REFORM BILL CONTAINING SUCH A MEASURE PASSED THE SENATE LAST YEAR BUT DIED IN THE HOUSE OF REPRESENTATIVES THOUGH THE SBA HAS CHANGED ITS SBIC REGULATIONS TO GIVE IT MORE PROTECTION AGAINST BANKRUPTCY LOSSES THE AGENCY STILL BELIEVES CONGRESSIONAL ACTION IS NECESSARY SAYS MR TECKLER THE SBA'S DEPUTY GENERAL COUNSEL OTHERWISE SBICS COULD CONTINUE TO STICK IT TO THE GOVERNMENT MR TECKLER SAYS 9402150116 940215 ORDER FOR THOR INDUSTRIES JACKSON CENTER OHIO THOR INDUSTRIES INC SAID IT RECEIVED ITS LARGESTEVER ORDER VALUED AT ABOUT 15 MILLION FROM GO VACATIONS INC A RECREATIONALVEHICLE RENTAL CONCERN BASED IN TORONTO TO BUILD 450 MOTOR HOMES THE MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES SAID THE VEHICLES WILL BE BUILT AT ITS FOUR WINDS FACILITY IN ELKHART IND AND WILL BE SHIPPED TO GO VACATIONS' 10 RENTAL CENTERS IN THE US AND CANADA BEGINNING NEXT MONTH THE ORDER WILL INCREASE PRODUCTION OF THE COMPANY'S CLASS C MOTOR HOMES BY ABOUT 20 9402150115 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL RUSSIANS ALEXANDER GOLUBEV AND SERGEI KLEVCHENYA BOTH BREAKING THE OLYMPIC RECORD SWEPT THE TOP TWO MEDALS IN MEN'S 500METER SPEED SKATING DAN JANSEN OF THE US THE WORLD RECORD HOLDER SLIPPED AND FINISHED EIGHTH MR GOLUBEV WON IN 3633 FOLLOWED BY MR KLEVCHENYA IN 3639 BOTH BROKE THE OLYMPIC MARK OF 3645 SET BY UWEJENS MEY OF THE FORMER EAST GERMANY IN CALGARY IN 1988 MANABU HORII OF JAPAN WAS THE BRONZE MEDALIST IN 3653 MR JANSEN WHOSE BEST OLYMPIC FINISH IS A FOURTH IN THE 500 IN 1984 AND AGAIN IN 1992 IS THE ONLY MAN EVER TO SKATE FASTER THAN 36 SECONDS IN THE 500 HE SLIPPED ON THE HOME TURN OF YESTERDAY'S RACE BRUSHING HIS HAND AGAINST THE ICE IT'S A BIT OF A SHOCK TO ME MR JANSEN SAID I'M NOT MAKING EXCUSES BUT IT'S NOT A PLACE I'VE SLIPPED BEFORE I WOULD HAVE WON BY QUITE A BIT IF I DIDN'T SLIP MR JANSEN AND SEVERAL OTHER SKATERS SAID THE ICE IN THE VIKING SHIP OLYMPIC HALL WAS HARDER THAN THEY HAD SEEN IT A CONDITION THEY DIDN'T LIKE THOMAS ALSGAARD OF NORWAY WON THE MEN'S 30KILOMETER FREESTYLE CROSSCOUNTRY SKIING RACE IN A TIME OF 1 HOUR 12 MINUTES AND 264 SECONDS BEATING HIS TEAMMATE BJORN DAHLIE BY 472 SECONDS MIKA MYLLYLA WHO IS LEADING FINLAND'S REJUVENATED MEN'S TEAM TOOK THE BRONZE 1476 BEHIND THE WINNER MR ALSGAARD 22 YEARS OLD TOOK THE LEAD ONLY A FEW KILOMETERS INTO THE RACE AND HELD A 52SECOND ADVANTAGE OVER MR DAHLIE AT THE 12 KILOMETER CHECKPOINT MR ALSGAARD WHO WAS MAKING HIS OLYMPIC DEBUT INCREASED IT TO 10 SECONDS AT THE HALFWAY STAGE AND AFTER 221 KILOMETERS MR DAHLIE TRAILED BY 345 SECONDS BY THEN MR DAHLIE FIGURED HE HAD LOST THE RACE I FELT I WOULD NOT BE ABLE TO CATCH HIM WHEN HE LED BY HALFAMINUTE SAID MR DAHLIE A TRIPLE GOLD MEDALIST IN THE 1992 OLYMPICS AT ALBERTVILLE I WAS VERY IMPRESSED BY THOMAS'S PERFORMANCE TODAY MR ALSGAARD A FREESTYLE SPECIALIST SAID HE NEVER EXPECTED TO WIN I THOUGHT I HAD A CHANCE TO MEDAL BUT ONLY IF EVERYTHING WORKED 100 HE SAID BUT I NEVER EVEN DREAMED OF WINNING THE GOLD MEDAL COMING INTO THE SECOND LAP I KNEW I HAD A CHANCE TO WIN GERMANY'S GEORGE HACKL BECAME THE FIRST SOLO LUGER TO REPEAT AS AN OLYMPIC GOLD MEDALIST WHEN HE EDGED AUSTRIAN MARKUS PROCK BY THE SMALLEST MARGIN IN OLYMPIC LUGE HISTORY THE DIFFERENCE BETWEEN THE TWO RIVALS WAS 0013 SECOND ROUGHLY 13 INCHES MR HACKL'S TIME FOR THE FOUR RUNS WAS 3 MINUTES 21571 SECONDS DUNCAN KENNEDY FOURTH AFTER TWO RUNS AND BIDDING TO BECOME THE FIRST MALE AMERICAN LUGER TO WIN AN OLYMPIC MEDAL CRASHED NEAR THE END OF HIS THIRD RUN WHILE TRAVELING AT NEARLY 80 MPH AND CAREENED OFF BOTH WALLS SENDING SLIVERS OF ICE THROUGH THE AIR MR HACKL HAD TO MAKE UP 0048 OF A SECOND IN THE FOURTH AND FINAL RUN AFTER THE THIRD RUN I KNEW I COULD STILL MAKE IT BECAUSE FIVE HUNDREDTHS OF A SECOND IS LIKE NOTHING MR HACKL SAID IT WAS LIKE A CRIME NOVEL THERE WAS SO MUCH SUSPENSE IN A REPEAT OF THE ALBERTVILLE GAMES MR PROCK HAD TO SETTLE FOR THE SILVER AGAIN ITALY'S ARMIN ZOGGELER BRUSHED THE WALL ON HIS FIRST RUN OF THE DAY LOSING VALUABLE TIME BUT HELD ON FOR THE BRONZE MEDAL LASSE KJUS REKINDLED HOPES OF AN ALPINE VICTORY FOR NORWAY WHEN HE WON THE DOWNHILL PORTION OF THE ALPINE COMBINED EDGING AMERICANS KYLE RASMUSSEN AND TOMMY MOE MR KJUS HAD A TIME OF 1 MINUTE 3695 SECONDS MR RASMUSSEN WAS TIMED IN 13696 AND MR MOE THE OLYMPIC DOWNHILL CHAMPION CLOCKED 13714 THE COMBINED MEDALS ARE BASED ON AGGREGATE RESULTS OF A DOWNHILL RACE AND A SLALOM THAT WILL BE RUN FEB 25 THE CZECH REPUBLIC DEFEATED AUSTRIA 73 THE CZECHS WHO ARE EXPECTED TO CONTEND FOR THE GOLD MEDAL ARE 11 AFTER AN EARLIER UPSET BY FINLAND AUSTRIA FELL TO 02 GERMANY DEFEATED NORWAY BY A SCORE OF 21 TO GO TO 20 NORWAY HAS LOST BOTH OF ITS GAMES 9402150114 940215 AETNA EXPECTS TO POST 1994 OPERATING PROFIT EXCEEDING FORECASTS NEW YORK AETNA LIFE & CASUALTY CO EXPECTS TO REPORT OPERATING PROFIT OF MORE THAN 650 A SHARE THIS YEAR COMPANY CHAIRMAN RONALD COMPTON TOLD ANALYSTS THE FIGURE IS BETTER THAN EXPECTED BY STOCK ANALYSTS FOLLOWING MR COMPTON'S REMARKS AETNA STOCK ROSE TO 64375 UP 1625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE INSURER IN HARTFORD CONN RECENTLY ANNOUNCED A RESTRUCTURING THAT INCLUDES REDUCING ITS WORK FORCE BY 4000 OR 10 AND GETTING OUT OF TWO PENSION BUSINESSESSINGLEPREMIUM ANNUITIES AND GUARANTEEINVESTMENT CONTRACTS THE BENEFITS OF THOSE ACTIONS WILL TRANSLATE INTO HIGHER OPERATING PROFIT OPERATING PROFIT EXCLUDES CAPITAL GAINS ON INVESTMENTS AND IS VIEWED BY INSURANCE ANALYSTS AS A BETTER MEASURE OF EARNINGS POWER THAN NET INCOME LAST YEAR AETNA EARNED 549 A SHARE OR 610 MILLION FROM OPERATIONS BARRING ABNORMALLY HIGH CATASTROPHE LOSSES AND OTHER UNUSUAL CHARGES WE EXPECT 1994 OPERATING EARNINGS TO BE SOMEWHAT NORTH OF 650 PER SHARE MR COMPTON TOLD ANALYSTS AT A MEETING IN NEW YORK THE PERSHARE FIGURE INDICATES 725 MILLION IN OPERATING PROFIT FOR 1994 MR COMPTON EMPHASISED THAT THE COMPANY'S INDIVIDUAL BUSINESS SEGMENTS WILL POST BETTER RESULTS ESPECIALLY IN COMMERCIAL PROPERTY AND CASUALTY AETNA IS IN THE MIDST OF A RESTRUCTURING DESIGNED TO MAKE IT MORE PROFITABLE FOR YEARS ITS EARNINGS HAVE SUFFERED FROM SOURED REAL ESTATE INVESTMENTS COSTLY CLAIMS ON POLLUTION AND ASBESTOS AS WELL AS HIGH EXPENSES ON A NET BASIS THE COMPANY HAD A LOSS OF 366 MILLION OR 329 A SHARE AGAINST PROFIT OF 56 MILLION OR 51 CENTS A SHARE IN 1992 IN THE FOURTH QUARTER AETNA TOOK A 128 BILLION CHARGE TO PAY FOR THE LAYOFFS AND THE COSTS OF GETTING OUT OF THE PENSION BUSINESSES 9402150113 940215 MANY FIRMS IN US ARE URGING CAUTION IN DISPUTE ON TRADE AS CLINTON MOVES TO IMPOSE SANCTIONS ON JAPAN CALM IS SOUGHT BY CORPORATIONS A WALL STREET JOURNAL NEWS ROUNDUP WITH THE CLINTON ADMINISTRATION MOVING TO SLAP TRADE SANCTIONS ON JAPAN MOST OF CORPORATE AMERICA INCLUDING SOME COMPANIES EXASPERATED WITH JAPAN IS CALLING FOR CAUTION AND CALM PREDICTABLY FIRMS HURT BY JAPANESE COMPETITION WERE MORE INCLINED TO SUPPORT RETALIATION BY AND LARGE THOUGH US BUSINESSES EVEN THOSE WHO APPLAUD THE CLINTON ADMINISTRATION'S HANGTOUGH STANCE DON'T WANT A TRADE WAR THAT THREATENS TO FLARE OUT OF CONTROL SOME EXECUTIVES SAW THE RISING YEN AS A WAY TO SOLVE THE TRADE PROBLEM PEACEFULLY BY GIVING JAPANESE CONSUMERS MORE BUYING POWER AND RAISING THE COST OF JAPANESE GOODS IN THE US BE CAUTIOUS SAID JOSEPH MONTGOMERY CHIEF EXECUTIVE OFFICER AT CANNONDALE CORP A GEORGETOWN CONN OFFROAD BICYCLE MAKER THERE'S GOT TO BE A LOT OF DIFFERENT WAYS TO WRINKLE THIS WORM AROUND EVEN GIDDINGS & LEWIS INC A BIG US MACHINETOOL MAKER WHICH HASN'T MADE A MAJOR SALE IN JAPAN SINCE 1974 ISN'T PUSHING ANY SPECIFIC RETALIATION PLANS THE FOND DU LAC WIS COMPANY ONLY SAYS THAT THE US SHOULD CLOSELY LOOK AT THE OPTIONS AVAILABLE TO IT INDUSTRIES HURT BY JAPANESE EXPORTS PARTICULARLY THE AUTO COMPANIES TEND TO TAKE A TOUGHER LINE JAPAN SEEMS DETERMINED NOT TO ALLOW A MEANINGFUL OPENING OF THEIR MARKET SAID ROBERT J EATON CHRYSLER CORP CHAIRMAN HIS COMPANY WANTS TO SEE HIGHER TARIFFS ON JAPANESE MINIVANS AND SPORTUTILITY VEHICLES STEVEN WOLF A VICE PRESIDENT AT THE RIVER OAKS CHRYSLER/PLYMOUTH DEALERSHIP IN HOUSTON SAID HE WOULD LIKE TO SEE TARIFFS SLAPPED ON JAPANESE AUTOS AND OTHER PRODUCTS WHICH HE BELIEVES ARE DUMPED IN THE US CHRYSLER SELLS CARS TO MAKE A PROFIT TOYOTA MOTOR CORP AND THE JAPANESE SELL CARS TO MAINTAIN MARKET SHARE MR WOLF COMPLAINED OTHERS JOINED CHRYSLER IN THE CALL FOR RETALIATION WE WOULD BE HAWKS SAID CHRIS DOLAN MANAGER OF PLANNING AND DEVELOPMENT AT GUARDIAN INDUSTRIES CORP WHICH HAS BEEN SELLING GLASS TO THE JAPANESE AUTOMOTIVE AND CONSTRUCTION MARKET FOR SEVERAL YEARS WE SUPPORT THE TOUGH STANCE THE ADMINISTRATION HAS TAKEN THAT'S THE ONLY WAY WE WILL EVENTUALLY PRY OPEN THE JAPANESE MARKET HE SAID ADDING THAT GUARDIAN SALES IN JAPAN ARE EXTREMELY SMALL COMPARED TO THE PRICE OF DOING BUSINESS THERE CRAY RESEARCH INC THE BIG US SUPERCOMPUTER MAKER SAID THE CLINTON ADMINISTRATION DID EXACTLY THE RIGHT THING IN BREAKING OFF TALKS CRAY OFFICIALS SAID THE COMPANY HAS NEVER HAD A FAIR SHOT IN COMPETITIONS WITH FIRMS SUCH AS HITACHI LTD NEC CORP AND FUJITSU LTD BUT PAUL DILLINGHAM VICE PRESIDENT OF GOVERNMENT OPERATIONS DISCOURAGED US RETALIATION BECAUSE IT WOULD BE A VERY VERY SERIOUS STEP FOR THE US GOVERNMENT TO TAKE IT WOULD IMPACT A VARIETY OF INDUSTRIES MEANWHILE JAPAN SIGNALED NEW OPENNESS TO US SUPERCOMPUTER MAKERS A GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPERCOMPUTER CENTER FROM SEVERAL US COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORP JAPANESE OFFICIALS SAID THE CONTRACTS MEAN SIX OF THE PAST 11 PUBLIC SUPERCOMPUTER BIDS HAVE GONE TO US MAKERS HIGHTECH COMPANIES THAT COUNT ON JAPANESE IMPORTS GREW NERVOUS THAT THE TRADE FRACAS WILL BE COSTLY STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TECH DATA CORP A CLEARWATER FLA WHOLESALE DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE NOTED THAT ABOUT 10 TO 20 OF THE PRODUCTS THE COMPANY SELLS HAVE A JAPANESE LABEL WHILE AS MUCH AS A THIRD CONTAIN JAPANESE PARTS IF WE CAN'T GET THEIR PRODUCTS ANYMORE IT'S GOING TO BRING OUR INDUSTRY TO ITS KNEES HE WARNED MR RAYMUND SAID IT'S FOOLISH FOR THE US TO RETALIATE AGAINST THE JAPANESE NOW BECAUSE OF THE INTERNAL POLITICAL STRAIN THE JAPANESE PRIME MINISTER IS CLINGING TO POWER BY HIS FINGERTIPS HE REASONED THE GUY IS GOING TO HAVE TO DIG IN HIS HEELS TO RETAIN RESPECT AT HOME THE US IS CHOOSING THE WORST POSSIBLE MOMENT TO CONFRONT JAPANESE LEADERSHIP FOR HIS PART PRIME MINISTER MORIHIRO HOSOKAWA PICKED UP SUPPORT AT HOME FOR HIS DEFIANT STANCE IN PREVIOUS TRADE SPATS THE US WAS ABLE TO WIN ALLIES IN SOME KEY JAPANESE CONSTITUENCIES SUCH AS CONSUMERS SUFFERING FROM THE HIGH PRICES THAT RESULT FROM IMPORT BARRIERS BUT THIS TIME THE US FAILED TO CONNECT WITH ANY JAPANESE SUPPORTERS JAPAN'S POWERFUL BUREAUCRATS IN PARTICULAR ARE REJOICING OVER THE COLLAPSE OF THE FRAMEWORK TRADE TALKS WHICH THEY HAD OPPOSED FROM THE START WE'RE SATISFIED SAID ONE MANDARIN WHO JUST RETURNED FROM WASHINGTON INSURANCE EXECUTIVES HAD CLOSELY WATCHED THE TRADE TALKS HOPING FOR BREAKTHROUGHS THAT WOULD OPEN JAPAN'S MARKET THOUGH DISAPPOINTED BY THE COLLAPSE OF TALKS EDWARD HANWAY PRESIDENT OF CIGNA INTERNATIONAL PROPERTY & CASUALTY A DIVISION OF PHILADELPHIABASED CIGNA CORP URGED CAUTION I'M NOT GUNGHO LET'SSANCTIONTHEHELLOUTOFTHEM' HE SAID CIGNA HAS BEEN SELLING INSURANCE IN JAPAN SINCE THE EARLY 1920S SCOTT MONTGOMERY CHAIRMAN OF JAPAN OPERATIONS FOR CANNONDALE THE BICYCLE MAKER ARGUED SANCTIONS ARE POLITICALLY POWERFUL BUT ECONOMICALLY WON'T MAKE A HILL OF BEANS I WOULD MUCH RATHER SEE THE YEN AT A 100 YEN TO THE DOLLAR THAN TRADE SANCTIONS CANNONDALE EXECUTIVES EXPECT THE COMPANY'S SALES IN JAPAN TO ACCOUNT FOR ABOUT 5 MILLION OF ITS ESTIMATED 105 MILLION IN TOTAL SALES FOR THE FISCAL YEAR ENDING JUNE 30 WALL STREET APPEARS TO BE FOLLOWING THE SENTIMENT OF MANY CORPORATE EXECUTIVES RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK CORP SAID THE RISE OF THE YEN TO ABOUT 102 YEN TO THE DOLLAR DEMONSTRATES THE MARKET'S EXPECTATION THAT THE ADMINISTRATION WILL WANT TO USE THE STRONG YEN TO PRY MORE ACTION OUT OF THE JAPANESE ON THE TRADE SIDE SHEVACH SARAF CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF SOLITRON DEVICES INC A MAKER OF SEMICONDUCTORS AND OTHER COMPONENTS USED BY THE DEFENSE AND AEROSPACE INDUSTRIES WARNED THAT THERE WILL BE NO MOVEMENT UNLESS THE US SHOWS THEM JAPAN A STRONG HAND BUT THE HEAD OF THE WEST PALM BEACH FLA CONCERN SAID HE PERSONALLY OPPOSES RETALIATION PROTECTIONISM PROTECTS INDUSTRY IN THIS COUNTRY CONTINUING THE WAY IT'S GOING NOW INSTEAD OF TRYING TO EXCEL HE SAYS THE WAY FOR THE US TO RETALIATE IS TO SUBSIDIZE AND PROMOTE NEW PRODUCT DEVELOPMENT AND AUTOMATION SO US MANUFACTURERS COULD BECOME MORE COMPETITIVE WITH THE JAPANESE ON QUALITY 9402150112 940215 COMMODITIES HEATING OIL FUTURES ARE SENT DIVING AS TRADERS ADJUST POSITIONS ON PROMISE OF COMING SPRING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL HEATING OIL FUTURES PLUNGED MORE THAN THREE CENTS A GALLON ON THE PROMISE OF A THAW IN THE FRIGID WEATHER IN THE NORTHEAST US THAT PULLED THE PROPS FROM UNDER WORLD OIL MARKETS AND PRICES OF CRUDE OIL AND OTHER FUELS ALSO PLUMMETED IN US FUTURES TRADING CRUDE OIL FOR MARCH DELIVERY FELL 59 CENTS TO SETTLE AT 1413 A BARREL THAT WAS THE LOWEST SETTLEMENT PRICE SINCE LATE DECEMBER FOR THE SOCALLED PROMPTMONTH CRUDE TRADED ON THE NEW YORK MERCANTILE EXCHANGE IN US OIL FIELDS MEANWHILE SOME REFINERS WERE REDUCING THE PRICES THEY POST FOR WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE BY 50 CENTS A BARREL AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED YESTERDAY BETWEEN 30 CENTS AND 40 CENTS A BARREL LOWER PUBLISHED REPORTS THAT SAUDI ARABIA WON'T COMMIT TO A SECONDQUARTER CUT IN ITS OIL PRODUCTION DESPITE WEEKEND APPEALS FROM OTHERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTRIBUTED TO THE DECLINES IN CRUDE PRICES UNTIL OPEC READDRESSES THE OIL OVERHANG THAT'S ANTICIPATED FOR THE SECOND QUARTER THE MARKET IS GOING TO BE UNDER PSYCHOLOGICAL PRESSURE SAID PETER BEUTEL PRESIDENT OF CAMERON HANOVER INC A NEW YORKBASED ENERGY RESEARCH AND TRADING FIRM BUT HE AND OTHERS AGREED THAT YESTERDAY'S SELLOFF IN WORLD OIL MARKETS WAS MOSTLY TRIGGERED BY A SUDDEN WEAKENING IN US HEATING OIL FUTURES VERY COLD WEATHER OVER THE US IN RECENT WEEKS HAD DRAINED MUCH OF THE EXCESS FROM FUEL INVENTORIES AND HAD HELD A FLOOR UNDER HEATING OIL PRICES BUT THE HEATING OIL MARKET OFTEN SOFTENS THIS TIME OF THE YEAR IN THE US BETWEEN VALENTINE'S DAY AND PRESIDENTS DAY AS TRADERS BEGIN LOOKING AHEAD TO SPRING AND REPOSITIONING THEMSELVES FOR THE SHIFT IN DEMAND FOR FUELS YESTERDAY HEATING OIL PRICES BEGAN FALLING STEEPLY AFTER A NATIONAL WEATHER SERVICE FORECAST OF WARMER TEMPERATURES IN THE NORTHEAST AFTER THE WEEKEND'S HEAVY SNOWFALL IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY DROPPED 316 CENTS A GALLON TO SETTLE AT 4782 CENTS APRIL HEATING OIL WAS 186 CENTS LOWER AT 443 CENTS A GALLON IN NATURAL GAS FUTURES TRADING THE MARCH CONTRACT FELL 104 CENTS TO SETTLE AT 2252 A MILLION BRITISH THERMAL UNITS THE APRIL GAS CONTRACT WAS DOWN 56 CENTS TO 218 A MILLION BTUS GRAINS & SOYBEANS CORN PRICES SETTLED MIXED IN THE WAKE OF THE AGRICULTURE DEPARTMENT'S WIDELY EXPECTED DECISION TO FURTHER REDUCE ITS ESTIMATE OF THE US CORN STOCKPILE WHICH IS ALREADY AT ITS TIGHTEST LEVEL SINCE THE MID1970S THE DEPARTMENT LAST WEEK CUT ITS ONEMONTHOLD FORECAST OF THE AUG 31 CORN SUPPLY TO 777 MILLION BUSHELS FROM 802 MILLION BUSHELS THE US HAD 21 BILLION BUSHELS OF CORN LEFT OVER IN AUGUST 1993 THE GRAIN SUPPLY REACHES ITS LOWEST LEVEL OF THE YEAR IN AUGUST BECAUSE THE HARVEST BEGINS TO REPLENISH SUPPLIES IN SEPTEMBER IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SLIPPED 025 CENTS A BUSHEL TO SETTLE AT 298 A BUSHEL SUPPLIES ARE TIGHT BECAUSE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST YEAR REDUCED THE CORN HARVEST BY 33 FARMERS IN STATES SUCH AS WISCONSIN WILL HAVE TO IMPORT UNUSUALLY LARGE AMOUNTS OF CORN FROM OTHER STATES IN ORDER TO FEED THEIR LIVESTOCK SPOT SHORTAGES ARE ALSO EXPECTED IN SEVERAL COUNTIES ACROSS THE MIDWEST THIS YEAR PRECIOUS METALS THE DOLLAR'S SWOON AGAINST THE JAPANESE YEN WAS A BOOST TO PRECIOUSMETALS PRICES BUT NOT AS MUCH AS MIGHT HAVE BEEN EXPECTED ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE 390 TO 38560 AN OUNCE AND THE PRICE OF THE SILVER CONTRACT FOR MARCH DELIVERY WAS UP 95 CENTS TO 535 AN OUNCE HOWEVER THE METALS ARE NOT RECEIVING THE AMOUNT OF SUPPORT YOU MIGHT EXPECT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH GIVEN THE MAGNITUDE OF MOVEMENT IN THE YEN AND EUROPEAN CURRENCIES THE RESPONSE OF PRECIOUS METALS WAS TAME IT MAKES ME SUSPECT THAT THERE WON'T BE ANY REALLY STRONG RALLIES BASED ON CURRENCY SITUATIONS THE PRICE OF GOLD HAS BEEN MIRED IN A 380TO390ANOUNCE TRADING RANGE FOR WEEKS 9402150111 940215 SMALL STOCK FOCUS SMALLCAP ISSUES MANAGE TO ADVANCE DESPITE SLUMPING BONDS WEAK DOLLAR BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SLUMPING BONDS AND A WEAKER DOLLAR PRESSURED EQUITIES BUT SMALLCAP STOCKS HUNG ON TO GAINS THROUGHOUT THE SESSION THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS CLOSED UP 030 POINT OR 011 TO FINISH AT 26319 THE NASDAQ COMPOSITE INDEX ROSE 406 POINTS OR 052 TO 78545 NEITHER INDEX MOVED LOWER DURING THE DAY DESPITE THE NEGATIVE EXTERNAL FORCES ON FRIDAY THE RUSSELL LOST 125 POINTS AND THE NASDAQ COMPOSITE PULLED BACK 203 POINTS IN A SESSION ABBREVIATED BY A MAJOR EAST COAST SNOWSTORM ADVANCING NASDAQ ISSUES TOPPED DECLINERS 1632 TO 1469 ON NASDAQ NATIONAL MARKET VOLUME OF 225415300 SHARES AND TOTAL VOLUME OF 282513000 IN FRIDAY'S SHORTENED SESSION NATIONAL MARKET VOLUME REGISTERED JUST 171971500 SHARES WHILE TOTAL VOLUME REACHED 208189000 THE DOLLAR TUMBLED AGAINST THE YEN HURT BY THE COLLAPSE OF TRADE TALKS BETWEEN THE US AND JAPAN ON FRIDAY MID ATLANTIC MEDICAL SERVICES ROSE 2 TO 32 7/8 THE ROCKVILLE MD PROVIDER OF MANAGED HEALTH CARE PROJECTS SAID IT WILL POST FOURTHQUARTER NET INCOME BETWEEN 46 CENTS AND 49 CENTS A SHARE TOPPING ANALYSTS' ESTIMATES OF 28 CENTS TO 33 CENTS IT EARNED 22 CENTS A YEAR EARLIER MID ATLANTIC ALSO SAID IT EXPECTS TO POST 1993 EARNINGS OF 107 TO 110 A SHARE UP FROM 63 CENTS IN 1992 ALL FIGURES REFLECT A 3FOR2 STOCK SPLIT ANNOUNCED IN NOVEMBER DIANA A MILWAUKEE WHOLESALE MEAT DISTRIBUTOR JUMPED 2 3/8 TO 12 3/4 ON THE BIG BOARD THE COMPANY SAID FISCAL THIRDQUARTER EARNINGS WERE 51 CENTS A SHARE COMPARED WITH OPERATING NET OF SEVEN CENTS A SHARE IN THE YEAREARLIER PERIOD PROTECTIVE LIFE ROSE 3 1/8 TO 45 1/2 ON THE BIG BOARD THE BIRMINGHAM ALA INSURER SAID FOURTHQUARTER NET ROSE TO 137 A SHARE FROM 81 CENTS A YEAR EARLIER ALSO ON THE BIG BOARD SEITEL GAINED 1 3/8 TO 16 7/8 THE HOUSTON SEISMIC DATA COMPANY SAID FOURTHQUARTER NET INCOME ROSE TO 41 CENTS A SHARE ON MORE SHARES FROM 26 CENTS A YEAR EARLIER SEITEL ALSO SAID ITS 3D SEISMIC OPERATIONS ARE BOOKED UP THROUGH NEARLY ALL OF THIS YEAR AND THAT IT IS EXPANDING ITS PRODUCTIVE CAPACITY BUT NYSELISTED TIMBERLAND FELL 1 5/8 TO 41 7/8 AFTER PLUNGING 9 7/8 ON FRIDAY THE HAMPTON NH FOOTWEAR AND APPAREL COMPANY EXPECTS TO REPORT BREAKEVEN RESULTS FOR THE FIRST HALF OF 1994 BUT WILL RECOVER ENOUGH IN THE SECOND HALF TO REPORT EARNINGS OF MORE THAN 3 A SHARE FOR THE YEAR AN ANALYST SAID TIMBERLAND EARNED 201 A SHARE IN 1993 ON FRIDAY TIMBERLAND'S SHARES FELL WHEN IT REPORTED FOURTHQUARTER EARNINGS OF 62 CENTS A SHARE BELOW THE 66 CENTS EXPECTED BY WALL STREET SPECTRAN SANK 1 TO 9 1/2 AFTER FRIDAY'S CLOSE THE STURBRIDGE MASS MAKER OF FLEXIBLE GLASS FIBERS SAID FOURTHQUARTER EARNINGS FELL TO 20 CENTS A SHARE FROM 21 CENTS A YEAR EARLIER TECHNICAL COMMUNICATIONS SLIPPED 2 TO 11 1/4 THE CONCORD MASS COMMUNICATIONS SECURITY DEVICES CONCERN POSTED A FISCAL FIRSTQUARTER LOSS OF 24 CENTS A SHARE COMPARED WITH EARNINGS OF ONE CENT A SHARE A YEAR EARLIER NYSELISTED QUICK & REILLY GROUP FELL 2 5/8 TO 31 MERRILL LYNCH & CO SOLD 15000 QUICK & REILLY SHARES AND WAS OFFERING ANOTHER 40000 FOR SALE THE PALM BEACH FLA BROKERAGE FIRM SAID QUICK & REILLY ALSO TOLD ANALYSTS LAST WEEK THAT IT EXPECTS TO REPORT FISCAL FOURTHQUARTER EARNINGS OF ABOUT 1 A SHARE MATCHING THE FIGURE EARNED A YEAR EARLIER ON A SPLITADJUSTED BASIS PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INC SAID HE HAS NOTICED A DIVERGENCE IN THE LAST WEEK BETWEEN LARGER AND SMALLER STOCKS THAT COULD INDICATE A BIT OF A ROTATION BACK TO SMALLCAP ISSUES FROM BIGGER CYCLICALS SINCE FEB 4 WHEN THE DOW INDUSTRIALS FELL 96 POINTS SMALLER STOCKS HAVEN'T POSTED AS LARGE GAINS AS THEIR LARGER COUNTERPARTS ON THAT DAY THE FEDERAL RESERVE SAID IT WOULD MOVE TO TIGHTEN MONETARY POLICY THE DOW INDUSTRIALS HAVE COME BACK 084 SINCE AND THE RUSSELL HAS RECOVERED 058 BUT LAST WEEK THE RUSSELL ROSE TWO DAYS WHEN THE BROADER MARKET FELL MARY LISANTI A BANKERS TRUST CO PORTFOLIO MANAGER OF SMALLCAP AND MIDCAP FUNDS WITH ASSETS OF ABOUT 800 MILLION IS BETTING SMALLCAP STOCKS WILL OUTPERFORM LARGER ISSUES OVER THE NEAR TERM SMALLCAP STOCKS MARCH TO THEIR OWN DRUMMER MS LISANTI SAID THERE HAVE BEEN MORE SMALLERCOMPANY EARNINGS THAT HAVE SURPRISED TO THE UPSIDE RATHER THAN THE DOWNSIDE THIS EARNINGS PERIOD AND THIS IS STILL AN EARNINGSDRIVEN MARKET 9402150110 940215 WHO'S NEWS O'CHARLEY'S CHAIRMAN RESIGNS TO CONCENTRATE ON WESTERN SIZZLIN' NASHVILLE TENN DAVID WACHTEL JR 51 YEARS OLD RESIGNED AS CHAIRMAN OF O'CHARLEY'S INC A RESTAURANT CHAIN TO TURN FULL TIME TO HIS JOB AS PRESIDENT AND CHIEF EXECUTIVE OF PRIVATELY HELD WESTERN SIZZLIN' CORP A CHAIN OF STEAK RESTAURANTS MR WACHTEL WAS ONE OF A GROUP OF WESTERN SIZZLIN' FRANCHISEES WHO BOUGHT THE CHAIN NOW BASED IN NASHVILLE OUT OF CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS LAST FALL HE WILL BE SUCCEEDED BY GREGORY BURNS 38 AND CHARLES MCWHORTER JR 39 WHO WILL BE COCHAIRMEN MR BURNS WHO HAD BEEN CHIEF FINANCIAL OFFICER AND PRESIDENT WILL ASSUME THE CHIEF EXECUTIVE POST MR MCWHORTER CHIEF OPERATING OFFICER WILL SUCCEED MR BURNS AS PRESIDENT MR WACHTEL WHO HAD BEEN CHIEF EXECUTIVE OFFICER AND PRESIDENT GAVE UP OPERATIONAL RESPONSIBILITY FOR THE COMPANY LAST MAY MR BURNS SAID SINCE THEN THE COMPANY HASN'T HAD A CHIEF EXECUTIVE OFFICER MR WACHTEL SAID HE IS FILING A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL AS MANY AS 230000 SHARES IN O'CHARLEY'S ABOUT ONE THIRD OF HIS STAKE HE IS SELLING FOR PERSONAL FINANCIAL REASONS THE COMPANY HAS ABOUT 42 MILLION SHARES OUTSTANDING 9402150109 940215 US SET TO PRESS JAPAN IN TRADE FIGHT TACTICS INCLUDE SUPER 301' PROVISION BY WALL STREET JOURNAL REPORTERS BOB DAVIS IN WASHINGTON AND DAVID P HAMILTON IN TOKYO THE US IS PREPARING A TWOFRONT TRADE BATTLE WITH JAPAN WHICH IS TRYING TO HEAD OFF A FIGHT ON A THIRD FRONT THE ACTIONS FOLLOW THE COLLAPSE OF THE USJAPAN TRADE SUMMIT LAST WEEK IN THE WAKE OF THAT FAILURE THE YEN SOARED AGAINST THE DOLLAR YESTERDAY DESPITE MARKET SPECULATION THAT THE US WILL TRY TO BOOST THE YEN TO MAKE JAPANESE EXPORTS RELATIVELY MORE EXPENSIVE ADMINISTRATION OFFICIALS HAVE SAID THAT ISN'T THEIR INTENTION THEY ARGUE THAT BROADER MARKET FORCES THAT COULD PUSH DOWN THE YEN PRIMARILY THE WEAKNESS OF THE JAPANESE ECONOMY ARE TOO STRONG TO COUNTERACT UNILATERALLY THE CLINTON ADMINISTRATION DIDN'T ACT TO STOP THE YEN'S RISE DURING NEW YORK TRADING YESTERDAY BUT LAST NIGHT HOPING TO CALM THE FOREIGNEXCHANGE MARKET THE US TREASURY ISSUED A STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE OPENING OF THE TOKYO MARKETS IT SAID OUR EXCHANGERATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES THE US HOPES THAT ITS TOUGH TRADE TACTICS WILL FORCE JAPAN TO RETREAT AND ADOPT IMPORT GOALS THAT IT DISMISSED LAST WEEK TO LAUNCH ITS CAMPAIGN THE ADMINISTRATION HAS DECIDED TO RENEW A TOUGH TRADE PROVISION KNOWN AS SUPER 301 THAT SINGLES OUT COUNTRIES FOR RETALIATION AND IS AIMED AT JAPAN CONGRESSIONAL STAFFERS SAID THE RENEWAL WOULD COME AS EARLY AS TODAY BUT CLINTON OFFICIALS SAID IT MIGHT BE SEVERAL DAYS LATER AT THE SAME TIME THE ADMINISTRATION PLANS TO LAUNCH TRADESANCTION PROCEEDINGS TODAY OVER A DISPUTE WITH JAPAN OVER CELLULAR TELEPHONES WE'RE LOOKING AT SEVERAL OPTIONS PRESIDENT CLINTON SAID BUT I'M NOT RULING ANYTHING OUT AS PROSPECTS FOR CONFLICT HEIGHTENED JAPANESE OFFICIALS MOVED TO CALM YET ANOTHER TRADE DISPUTE THIS ONE OVER SUPERCOMPUTERS A JAPANESE GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPERCOMPUTER CENTER FROM SEVERAL AMERICAN COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORP NEXT MONTH THE US IS SCHEDULED TO COMPLETE A SPECIAL REVIEW AND DETERMINE WHETHER THE JAPANESE GOVERNMENT UNFAIRLY FAVORS DOMESTIC SUPERCOMPUTER MAKERS WE'RE MAKING A TRANSITION INTO A NEW WAY OF DOING BUSINESS WITH JAPAN SAID US TRADE REPRESENTATIVE MICKEY KANTOR THERE'S NO MORE STATUS QUO HE SAID THE ADMINISTRATION'S INITIAL THRUST FEATURES THE RENEWAL OF SUPER 301 AS A GETTOUGH SIGNAL TO JAPAN UNDER THAT PROVISION THE US TARGETS COUNTRIES ENGAGED IN A PATTERN OF UNFAIR TRADE PRACTICES AND NEGOTIATES TO END THOSE PRACTICES IF NO AGREEMENT IS REACHED WITHIN 18 MONTHS THE US WOULD RETALIATE GENERALLY BY IMPOSING PUNITIVE TARIFFS ON IMPORTS FROM THE TARGETED COUNTRY CONGRESS PASSED SUPER 301 IN 1988 TO FORCE THE BUSH ADMINISTRATION TO ADOPT A MORE MILITANT TRADE POLICY IN 1989 THE US TARGETED JAPAN BRAZIL AND INDIA AND EVENTUALLY WON CONCESSIONS FROM THE FIRST TWO BEFORE THE LAW EXPIRED IN 1990 TRADE EXPERTS SAID THE CLINTON ADMINISTRATION ALREADY HAS LEGAL AUTHORITY TO GO AFTER COUNTRIES WITHOUT SUPER 301 BUT BY ADOPTING THE PROVISION THROUGH EXECUTIVE ORDER THE ADMINISTRATION WOULD CLEARLY SIGNAL TO JAPAN THAT IT PLANS A CONFRONTATIONAL STRATEGY AND DOESN'T NEED TO BE EGGED ON BY CONGRESS THE RISK SAID IM DESTLER A JAPAN SPECIALIST AT THE UNIVERSITY OF MARYLAND IS THAT YOU GENERATE A NATIONALISTIC REACTION IN JAPAN AND UNDERCUT THE GOALS YOU SEEK ALONG WITH SUPER 301 THE US PLANS TO ELEVATE A FIGHT OVER CELLULAR TELEPHONES IN ORDER TO HIGHLIGHT THE CLOSED NATURE OF THE JAPANESE MARKET MOTOROLA INC COMPLAINS OF BEING DENIED COMPARABLE ACCESS TO THE JAPANESE CELLULARTELEPHONE MARKET DESPITE A TRADE AGREEMENT PROMISING MOTOROLA AN OPEN MARKET THE DISPUTE CENTERS ON AN AREA SOUTH OF TOKYO WHERE THE TELECOMMUNICATIONS MINISTRY PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAJOR JAPANESE RIVAL NIPPON TELEGRAPH & TELEPHONE CORP MOTOROLA HAS SAID THAT ITS PARTNER SPENDS MOST OF ITS TIME PUSHING NTT'S TECHNOLOGY NOW MOTOROLA WANTS THE COMPANY TO PLEDGE TO PROMOTE MOTOROLA'S SYSTEM AND FOR THE TELECOMMUNICATIONS MINISTRY TO POLICE THOSE PLEDGES US OFFICIALS SAID THAT THE MINISTRY DIDN'T MAKE ANY MOVE YESTERDAY TO RESOLVE THE CONTROVERSY AS A RESULT THEY EXPECT TO ANNOUNCE TODAY THAT TOKYO VIOLATED THE CELLULAR DEAL THE FIRST STEP IN IMPOSING SANCTIONS UNDER US TRADE LAW THE ADMINISTRATION WOULD ANNOUNCE 30 DAYS LATER A PRELIMINARY LIST OF PRODUCTS ON WHICH THE US WOULD IMPOSE PUNITIVE TARIFFS TRADE OFFICIALS LOOK FOR PRODUCTS THAT ARE IMPORTANT TO JAPAN'S TRADE AND ARE ALSO AVAILABLE FROM US SOURCES FOR INSTANCE THE US WOULDN'T PROPOSE TARIFFS ON VIDEOCASSETTE RECORDERS WHICH AREN'T PRODUCED DOMESTICALLY BUT ON ITEMS SUCH AS COMPUTERS AND POWER TOOLS WHICH ARE IN A DISPUTE OVER CELLULAR TELEPHONES THE US PROBABLY WOULD TRY TO SLAP TARIFFS ON JAPANESE EXPORTS OF THOSE GOODS AFTER THE PRELIMINARY LIST IS PUBLISHED THE US WILL HOLD A HEARING ON THE ITEMS CHOSEN IN ORDER TO GIVE DOMESTIC INDUSTRIES A CHANCE TO SAY WHETHER THE TARIFFS WOULD HARM THEM LATER ON THE US WOULD PUBLISH A FINAL LIST OF SANCTION TARGETS THEN FINALLY IMPOSE THE TARIFFS THE WHOLE PROCESS CAN TAKE MORE THAN THREE MONTHS THAT'S ON PURPOSE THE IDEA OF TRADE SANCTIONS ISN'T TO IMPOSE TARIFFS BUT TO FORCE A COUNTRY TO ELIMINATE PRACTICES THE US FINDS OBJECTIONABLE SIMILARLY SUPER 301 ENVISIONS AN 18MONTH INVESTIGATION TO GIVE THE US TIME TO TWIST THE ARMS OF ITS TRADE ADVERSARIES JAPANESE GOVERNMENT OFFICIALS DECLINED TO SAY YESTERDAY WHETHER THEY WILL OFFER LASTMINUTE CONCESSIONS TO STAVE OFF THE US THREAT ON CELLULAR PHONES BUT SOME OFFICIALS SAID THAT PRIME MINISTER MORIHIRO HOSOKAWA WILL MEET SOON WITH HIS ADVISERS TO TRY TO CRAFT A NEW RESPONSE TO US TRADE COMPLAINTS WE WILL CONTINUE OUR VOLUNTARY PATH TO DEREGULATE AND OPEN UP MARKETS AN OFFICIAL SAID US TRADE OFFICIALS SAID THEY ARE TARGETING THE MOTOROLA CASE BECAUSE THEY HAVE A STRONG CASE THERE INDEED THE CLINTON ADMINISTRATION MOVED UP THE DATE WHEN IT WOULD ANNOUNCE A FINDING BY SIX WEEKS UNTIL JUST AFTER THE TRADE SUMMIT SO IT COULD MAKE IT A TEST CASE OF USJAPANESE TRADE RELATIONS WITH THE SUPERCOMPUTER DISPUTE WHICH TOKYO TRIED TO DEFUSE YESTERDAY THE US CASE IS MUCH WEAKER JAPANESE OFFICIALS SAY YESTERDAY'S CONTRACT AWARD TO THE IBM GROUP MEANS SIX OF THE PAST 11 PUBLIC SUPERCOMPUTER BIDS HAVE GONE TO US MAKERS IF THIS CAN BE CALLED NOT FAIR' THERE IS NO SUCH THING AS A FAIR PROCESS SAID AN OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY US TRADE OFFICIALS COMPLAIN THAT JAPAN IS SIMPLY TRYING TO BUY OFF THE US INDUSTRY WITH THE AWARDS US COMPANIES HAVEN'T WON HEADTOHEAD COMPETITION WITH JAPANESE COMPANIES WASHINGTON COMPLAINS BUT THE US POSITION ON SUPERCOMPUTERS IN JAPAN IS UNDERCUT BY GOVERNMENT PRACTICES AT HOME US AGENCIES RARELY IF EVER BUY FOREIGN SUPERCOMPUTERS PARTLY BECAUSE THEY KNOW SUCH PURCHASES WILL CAUSE THEM POLITICAL GRIEF IN ADDITION CRAY RESEARCH INC THE BIGGEST US SUPERCOMPUTER MAKER SAID IT DOESN'T WANT THE US TO IMPOSE TRADE SANCTIONS WHICH COULD LEAD TO PUNITIVE TARIFFS ON CRAY'S IMPORTS CRAY BUYS 100 MILLION ANNUALLY IN COMPUTER CHIPS AND OTHER CRITICAL COMPONENTS FROM JAPANESE SUPPLIERS A SPOKESMAN ESTIMATED I DOUBT OUR SUPPLIERS WANT TO SEE SANCTIONS HE SAID QUENTIN HARDY IN TOKYO CONTRIBUTED TO THIS ARTICLE 9402150108 940215 BUSINESS BRIEF WAXMAN INDUSTRIES INC FISCAL 2NDPERIOD NET FELL 60 REFINANCING PLANNED WAXMAN INDUSTRIES INC REPORTED A 60 DECLINE IN NET INCOME FOR THE FISCAL SECOND QUARTER AND SAID IT PLANS TO REFINANCE ABOUT 165 MILLION IN DOMESTIC DEBT FOR THE QUARTER ENDED DEC 31 THE BEDFORD HEIGHTS OHIO COMPANY REPORTED NET INCOME OF 74000 OR ONE CENT A SHARE COMPARED WITH NET INCOME OF 186000 OR TWO CENTS A SHARE IN THE YEAREARLIER QUARTER SALES FELL 64 TO 854 MILLION FROM 911 MILLION WAXMAN A SUPPLIER OF PARTS AND EQUIPMENT TO THE HOME REPAIR AND REMODELING MARKET SAID IT HAS BEEN WORKING WITH MERRILL LYNCH & CO AND A UNIT OF CITICORP FOR THE PAST SIX WEEKS TO REFINANCE ITS DOMESTIC BANK DEBT A SPOKESMAN FOR THE COMPANY DECLINED TO OUTLINE POSSIBLE REFINANCING PLANS WAXMAN ADDED THAT IT REACHED AN AGREEMENT WITH CANADIAN LENDERS THAT WOULD ALLOW ITS IDEAL PLUMBING PARTS UNIT MORE FINANCIAL FLEXIBILITY BY DEFERRING CERTAIN DEBT PAYMENTS 9402150107 940215 MARKETING & MEDIA DOW JONES REUTERS TO RECEIVE LIBERTY BROKERAGE BOND DATA NEW YORK LIBERTY BROKERAGE INVESTMENT CO A MAJOR BROKER FOR PRIMARY DEALERS IN US TREASURY SECURITIES SAID IT AGREED TO PROVIDE PRICING DATA TO BOTH DOW JONES TELERATE AND REUTERS FINANCIAL DATA SERVICES THE AGREEMENT GIVES DOW JONES TELERATE A SECOND SIGNIFICANT STREAM OF INTERDEALER TREASURY SECURITIES PRICING DATA UNDER A LONGTERM CONTRACT DOW JONES TELERATE ALREADY PROVIDES DATA FROM BROKERAGE FIRM CANTOR FITZGERALD & CO THE LIBERTY AGREEMENT DOESN'T AFFECT ITS ARRANGEMENT WITH CANTOR A DOW JONES SPOKESMAN SAID WE FELT THAT THE MARKETS WOULD BE INTERESTED IN SEEING THE LIBERTY INFORMATION A LIBERTY SPOKESMAN SAID HE SAID THE COMPANY WASN'T UNDER ANY GOVERNMENT PRESSURE TO MAKE THE DATA MORE AVAILABLE BUT ADDED IT IS VERY CLEAR THAT REGULATORY AGENCIES WANT AS WIDE A DISTRIBUTION AS POSSIBLE AND ONE THAT IS AS MEANINGFUL AS POSSIBLE THE LIBERTY MOVE PARTLY REFLECTS THE GROWING IMPORTANCE OF SHORTTERM BOND DATA ON THE MARKETS SOME ANALYSTS AND BOND TRADERS SAY CANTOR FITZGERALD'S STRENGTH IS IN LONGERTERM FIXEDINCOME SECURITIES PARTICULARLY THE 30YEAR BOND LIBERTY'S SPECIALTY IS IN SHORTERTERM NOTES TRADERS SAY HOWEVER STUART FRASER A CANTOR SENIOR MANAGING DIRECTOR WHO RUNS THE FIRM'S BROKERAGE BUSINESS SAID I DON'T THINK ANY ONE INTERDEALER BROKER DOMINATES THE SHORT END OF THE MARKET THE MOVE IS A BIG BOOST TO LIBERTY BECAUSE TELERATE AND REUTERS TOGETHER REPRESENT THE BULK OF COMPUTER SCREENS ON THE BOND MARKET THE AGREEMENTS GIVE US THE WIDEST POSSIBLE DISTRIBUTION WITH EUROPEAN AND ASIAN COVERAGE AS WELL AS NORTH AMERICA THE LIBERTY SPOKESMAN SAID THE AGREEMENTS ARE NONEXCLUSIVE LIBERTY SAID IT WOULD CONSIDER OTHER VENDORS LIBERTY FORMED IN 1986 IS OWNED BY ABOUT A DOZEN PRIMARY DEALERS IN US GOVERNMENT SECURITIES AND OTHER INVESTORS INCLUDING MCGRAWHILL INC BOTH REUTERS THE INFORMATION SERVICE UNIT OF REUTERS HOLDINGS PLC AND DOW JONES TELERATE A UNIT OF DOW JONES & CO PLAN TO BEGIN OFFERING THE LIBERTY DATA ON TREASURY SECURITIES LATER THIS YEAR LIBERTY'S DATA ARE SIGNIFICANT TO THE MARKET BECAUSE THEY LIKE CANTOR'S DATA REPRESENT ATTRIBUTABLE TRADES OR ACTUAL TRADES REPORTED BY PRIMARY DEALERS IN THE TREASURY MARKET LIBERTY IS ALSO PART OF GOVPX A GOVERNMENT BOND DATA DISTRIBUTOR FORMED BY US TREASURY SECURITY PRIMARY DEALERS ALTHOUGH GOVPX TRADES ARE UNATTRIBUTED THE GOVPX DATA ARE ALREADY AVAILABLE ON REUTERS DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL BARRON'S AND OTHER PUBLICATIONS ELECTRONIC BUSINESS INFORMATION SERVICES AND COMMUNITY NEWSPAPERS 9402150106 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES FOR SKATING'S SAM SNEAD METTLE NO MEDAL BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL HAMAR THE PHENOMENON OF FAME BEFORE ACCOMPLISHMENT IS NOT RARE IN THIS IMPATIENT ERA BUT BY AND LARGE IT HAS SKIRTED SPORTS THE CROWDED CALENDAR PROVIDES MORE THAN ENOUGH WINNERS TO SATISFY THE MOST VORACIOUS CELEBRITY WORSHIPERS AND THEN WE HAVE DAN JANSEN THE SPEED SKATER HE HAD FAILED AND FAILED AGAIN IN THE OLYMPICSTHE ONE COMPETITION AMERICANS NOTICE IN HIS OBSCURE PURSUITYET THAT ONLY SERVED TO ENHANCE HIS STATURE HANDSOME HARDWORKING AND BLAND HE IS APPARENTLY THE SORT OF MAN WE YEARN TO ADMIRE WITH OR WITHOUT MUCH EXCUSE EVEN IN DEFEAT HIS PICTURE WAS PICKED TO GRACE BOXES OF KELLOGG'S CORN FLAKES WHAT COULD HE EXPECT IN VICTORY WHEATIES WE MIGHT NEVER FIND OUT THE 28YEAROLD MILWAUKEEAN CAME YESTERDAY AFTERNOON TO THE GREATCEILINGED HAMAR OLYMPIC HALL THE MOST IMPRESSIVE INDOOR VENUE OF THESE WINTER GAMES AS THE STRONG FAVORITE IN HIS 500METER SPECIALTY AS HE WAS IN THE PREVIOUS TWO OLYMPICS AND AS HE HAD IN THREE OTHER OF THESE AFFAIRS HE FINISHED OFF THE MEDAL STAND A DISTANT EIGHTH HIS DOWNFALL WAS A SINGLE STEP ON THE RACE'S FINAL TURN HIS LEFT SKATE SLIPPED KNOCKING HIM OUT OF KILTER AND HE HAD TO EXTEND A HAND TO RIGHT HIMSELF HE DID AND FINISHED IN A TIME OF 3668 SECONDS ONLY 035SECOND BEHIND THAT OF WINNER ALEKSANDR GOLUBEV AN UNHERALDED RUSSIAN BUT IN A SPORT WHERE A FEW HUNDREDTHS OF A SECOND OFTEN SEPARATE WINNERS FROM ALSORANS THE GAP WAS GAPING I DON'T KNOW WHY IT HAPPENED MR JANSEN SAID LATER I WAS FINE TO THAT POINT I FELT GOOD HAD A GOOD START AND MY FIRST TURN WAS SOLID IT WASN'T NORMAL TO SLIP AT THAT PART I TRIED TO GET IT BACK BUT I'D LOST MOMENTUM WITHOUT THE SLIP I THINK I WOULD HAVE WON THE RACE BY QUITE A BIT ANYONE SEARCHING FOR HISTORICAL COMPARISONS FOR MR JANSEN'S PLIGHT COULD DO WORSE THAN SUMMON UP SAM SNEAD NO ONE STRUCK MORE GOLF BALLS BETTER THAN THE MAN FROM WEST VIRGINIA BUT HIS SPORT'S BIGGEST PRIZE THE US OPEN ALWAYS ELUDED HIM A FEW TIMES IN BIZARRE FASHION AND HE'LL BE REMEMBERED AS MUCH FOR HIS DEFEATS THERE AS FOR HIS MANY TRIUMPHS MR JANSEN TOO HAS BAGGED MANY A PRIZE AND THEY ARE IMPORTANT IN PLACES LIKE NORWAY WHERE SPEED SKATING AND SKATERS ARE REVERED THAT WAS EVIDENT FROM THE OVATION HE RECEIVED WHEN HE STEPPED TO THE STARTING LINE YESTERDAY BEFORE THE FULLHOUSE CROWD OF 11000 THAT HAS MADE THIS ONE OF THE GAMES' HOTTEST TICKETS HIS CREDITS INCLUDE MORE THAN 50 MEDALS ON THE WORLD CUP CIRCUIT AND 20ODD FROM VARIOUS WORLD CHAMPIONSHIPS INCLUDING THE MOST RECENT MORE TO THE POINT THERE HAVE BEEN THREE SUB36SECOND SPEEDSKATING 500S POSTED SINCE THE DAWN OF CREATION AND ALL THREE ARE HIS THAT MAKES HIM THE FASTEST HUMAN EVER ON TWO FEET OVER FLAT TERRAIN HE OWNS THE WORLD RECORD OF 3576 SECONDS FOR THE DISTANCE SET JAN 30 AT THE WORLD SPRINT CHAMPIONSHIPS IN CALGARY BUT MR JANSEN'S OLYMPIC TRAVAILS ARE BETTER KNOWN THE STUFF OF BOTH PATHOS AND COMMONER WOE HE STARTED OUT PROMISINGLY ENOUGH FINISHING FOURTH IN THE 500 IN 1984 AS AN 18YEAROLD OUTSIDER JUST GLAD TO BE THERE FOUR YEARS LATER HE CAME TO CALGARY AS THE FAVORITE IN THE EVENT BUT THE DAY OF THE RACE LEARNED THAT HIS SISTER HAD DIED OF LEUKEMIA HE DEBATED WHETHER TO COMPETE DID AND FELL A RARE OCCURRENCE A FEW DAYS LATER HE WAS BACK FOR THE 1000METER RACE ANOTHER USUALLY STRONG EVENT FOR HIM HE FELL AGAIN AT THE 1992 ALBERTVILLE GAMES HE HAD EVEN STRONGER CREDENTIALS AND VOWED TO SHOW PEOPLE THE REAL ME ON ICE HE SKATED WITHOUT MISHAP BUT PLACED A DISTANT FOURTH IN THE 500 AND A MOREDISTANT 26TH IN THE 1000 THE ICE OF THE OUTDOOR RINK THERE TURNED WET AND SOFT BY AN UNSEASONABLE WARM SNAP DIDN'T SUIT HIS LONGSTRIDING STYLE HE SAID HIS LOSSES WERE CAST IN SHARPER RELIEF BY THE VICTORIES OF BONNIE BLAIR HIS FRIEND AND TRAINING MATE SHE WON TWO GOLD MEDALS AT ALBERTVILLE TO GO WITH THE ONE SHE'D CAPTURED AT CALGARY SHE WELL MAY ADD A COUPLE MORE IN THE WOMEN'S 500 SCHEDULED FOR SATURDAY AND THE 1000 ON THE FOLLOWING WEDNESDAY ACCORDING TO BOTH MR JANSEN AND HIS COACH OLYMPIC EXCHAMP PETER MUELLER LILLEHAMMER WAS TO BE DIFFERENT NEW TRAINING ROUTINES HAD HONED THE SKATER'S BODY AND MARRIAGE AND A DAUGHTER BORN IN MAY HAD SET HIS PRIORITIES RIGHT THIS TIME MR JANSEN ESCHEWED THE USUAL ATHLETE'S PROMISE TO DO HIS BEST SAYING HE EXPECTED TO WIN THE 500 COACH MUELLER WENT FURTHER PREDICTING VICTORY BY A HALFSECOND MARGIN THAT'S THE SPEEDSKATING EQUIVALENT OF A RACETRACK FURLONG DAN'S NEVER BEEN IN BETTER PHYSICAL OR MENTAL SHAPE HE HASN'T HAD A BAD DAY ON ICE ALL WINTER MR MUELLER DECLARED NEGATIVE THOUGHTS WERE NOT TO BE ENTERTAINED WHEN A NEWSMAN BEGAN A PRESS CONFERENCE QUESTION FRIDAY WITH THE WORDS LOOKING BACK THE SKATER CUT HIM OFF I DON'T WANT TO LOOK BACK SAID HE BUT INEVITABLY HE WAS ASKED TO DO THAT AFTER YESTERDAY'S RACE AND NO DOUBT HE WILL BE AGAIN THE QUERY WAS A PECULIAR ONE DID HE ASCRIBE HIS OLYMPIC SETBACKS TO A FORCE OUT OF HIS POWER INSTEAD OF SHRUGGING IT OFF HE ANSWERED MAYBE IT WASN'T MEANT TO BE FOR ME HE SAID EVERYBODY KNOWS I'M THE BEST IN THAT RACE BUT IT WASN'T FOR ME TODAY UPSTAIRS IN THE MEDALISTS' PRESS CONFERENCE THE WINNERS WERE SAYING MUCH THE SAME THING JANSEN IS THE FASTEST SPRINTER ON EARTH SO EIGHTH PLACE TODAY WAS NOT PROPER SAID THE RUSSIAN SERGEI KLEVCHENYA THE RUNNERUP HE SHOULD DO BETTER IN THE 1000 THAT RACE PROBABLY MR JANSEN'S LAST AS AN OLYMPIAN IS SCHEDULED FOR FRIDAY AND INDEED HE PROBABLY WILL DO BETTER BUT MAYBE HE WON'T AS I'D TELL MY KIDS WHEN THEY WERE SMALL THE REASON THEY PLAY ALL THOSE GAMES AND RUN ALL THOSE RACES IS TO FIND OUT WHO'S BEST IF WE COULD FIGURE THAT OUT IN ADVANCE WHO'D BOTHER TO WATCH 9402150105 940215 TECHNOLOGY & HEALTH PRODIGY TRANSFORMS OLYMPICS VIEWERS INTO COUCH CRITICS COMPUTER SERVICE PUTS CBS IN LINE OF FIRE FOR GRIPES FROM ONLINE AUDIENCE BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAYBE INTERACTIVE TV ISN'T SUCH A GREAT IDEA AFTER ALL FOR THE FULL TWO WEEKS OF CBS INC'S COVERAGE OF THE 1994 WINTER OLYMPIC GAMES THE PRODIGY ONLINE COMPUTER SERVICE IS OFFERING SUBSCRIBERS A CHANCE TO CHAT ABOUT THE PROGRAMMING WITH CBS PERSONNEL IT ISN'T ALWAYS PRETTY THIS IS BY FAR THE WORST COVERAGE EVER ONE USER RAILED IN A COMPUTER MESSAGE ZAPPED ALL THE WAY TO LILLEHAMMER NORWAY REFERRING TO CBS'S TAPED STORIES HE COMPLAINED ABOUT THE DIVERSIONARY HUMANINTEREST JUNK OTHERS WONDERED WHO CARED ABOUT PAULA ZAHN'S INTERVIEW OF SOMEONE NAMED LILLY HAMMER OR THE TAPED STORY ABOUT A NORWEGIAN FOLK SINGER NAMED SPUTNIK TV COLOR COMMENTARY OF AN ENTIRELY DIFFERENT STRIPE A FEW CITE THE NETWORK'S OUTSTANDING COVERAGE BUT OTHERS INVOKE LESS KINDLY ADJECTIVES INCLUDING GAG ARRGGHH AND GET WITH THE PROGRAM FOR CBS WHICH AT ONE TIME HAD ACTUALLY BEEN A PARTNER IN THE PRODIGY VENTURE WITH CURRENT COOWNERS INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO THE NEW EFFORT IS A FORAY INTO ELECTRONIC INTERACTIVITY PRODIGY GETS SOME FREE PROMOTION ON CBS'S LATENIGHT COVERAGE WHILE THE ELECTRONIC BULLETIN BOARD LETS CBS SEND OUR OLYMPIC MESSAGE TO A NEW AUDIENCE OF TWO MILLION PRODIGY USERS A CBS SPOKESMAN SAID BUT THE MESSAGE COMING BACK FROM CYBERSPACE IT SEEMS SOMETIMES COMES DOWN TO THIS MISSILE FROM AN IMPATIENT VIEWER ONE WORD STINKS SOME ONLINE COMMENTATORS ASKED CBS'S STABLE OF COMMENTATORS TO SHUT THEIR TRAPS AND EASE UP ON THE CONSTANT CHATTER DURING THE OPENING CEREMONIES THE NETWORK'S EARLY ANNOUNCEMENT OF MEDAL WINNERS BEFORE THE EVENT IS TELEVISED ALSO HAS ANGERED MEDDLING COUCHOLYMPIANS IT TAKES AWAY ALL THE EXCITEMENT OF THE COMPETITION WROTE ONE PRODIGY USER BUT CBS HOST PAT O'BRIEN SEEMED TO DRUM UP THE MOST INTEREST ON AN ELECTRONIC BULLETIN BOARD TITLED ASK PAT O'BRIEN HE RECEIVED HUNDREDS OF VIEWER MESSAGES ASKING ABOUT SUCH BURNING ISSUES AS PAT WHY WAS THERE SO LITTLE COVERAGE OF THE FIRST TWO ROUNDS OF THE LUGE AND HEY PAT WOULD YOU PLEASE SAY HEY TO MY COUSIN JIMMY DIMA A CBS EMPLOYEE MR O'BRIEN RESPONDED THAT YES HE WOULD MUCH OF THE ONLINE DISCUSSION CENTERED ON CBS COVERAGE OF THE HARDINGKERRIGAN FIGURESKATING AFFAIR WHICH MANY COMPLAINED WAS TOO LENGTHY TO CONTINUED COMPLAINTS MR O'BRIEN FINALLY COUNTERED JUST A REMINDER WE DIDN'T CREATE THE TONYA HARDING/NANCY KERRIGAN STORY KILLING THE MESSENGER JUST DOESN'T WORK ANYMORE APPARENTLY VIEWERS LIKE THE NEW WAY OF TALKING BACK TO THE TV SET GEORGE SCHWEITZER CBS SENIOR VICE PRESIDENT SAID THE RESPONSE TO THE SERVICE HAS BEEN OVERWHELMING BUT IN SUCH AN OPEN FORUM ANYONE NOT JUST CBS IS A TARGET IN A SLIGHTLY OMINOUS NOTE ONE PRODIGY SUBSCRIBER SIMPLY ASKED I WOULD LIKE TO KNOW WHO IS RESPONSIBLE FOR THOSE HORRIBLE OUTFITS THE AMERICAN TEAM WEARS DURING THE OPENING CEREMONIES 9402150104 940215 MEDIA & MARKETING MARKETSCAN HIGHER PRICES GREET CONSUMERS OF NATION'S RETAIL PAPER GOODS BY DAVE KANSAS PAPER PRODUCTS ONE OF THE BEST SUPERMARKET BUYS IN THE 1990S ARE BECOMING MORE EXPENSIVE FOR MORE THAN THREE YEARS CONSUMERS REAPED THE SPOILS OF PRICING BATTLES THROUGHOUT THE PAPER MARKET RETAIL PRICES OF BATHROOM TISSUE FACIAL TISSUE PAPER TOWELS AND NAPKINS REMAINED STUBBORNLY LOW EVEN IN THE FACE OF A SLOWLY IMPROVING ECONOMY BUT RECENT DATA SHOW THAT THE PRICE WAR IS FINALLY WINDING DOWN THOUGH THEY STILL HOVER AROUND 1990 LEVELS UNIT PRICES OF MOST TYPES OF PAPER PRODUCTS HAVE BEGUN TO INCREASE CONSUMERPRODUCT ANALYSTS SAY MANUFACTURERS DRIVEN IN PART BY A SLIGHT FOURTHQUARTER INCREASE IN PULP PRICES HAVE STARTED TESTING THE MARKET'S APPETITE FOR RETAIL PRICE HIKES FOR EXAMPLE TOILET TISSUE PRICES INCREASED 89 TO 134 A UNIT DURING THE 1993 FOURTH QUARTER COMPARED WITH 123 A UNIT IN THE 1992 PERIOD ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE WHAT'S MORE ANDREW SHORE AN ANALYST WITH PAINEWEBBER INC SAYS PROCTER & GAMBLE CO MAKER OF PUFFS FACIAL TISSUE BOUNTY PAPER TOWELS AND CHARMIN BATHROOM TISSUE RAISED PRICES ABOUT 2 IN THE FOURTH QUARTER WITH OTHER MANUFACTURERS FOLLOWING SUIT P&G DECLINED TO COMMENT COMPANIES WILL TRY TO KEEP EDGING PRICES UPWARD MR SHORE SAYS BUT THEY'LL LIKELY FIND THAT THEY WON'T BE ABLE TO RAISE PRICES AS THEY HAVE IN THE PAST PRIVATELABEL PRODUCTS HAVE PERFORMED SIMILARLY TO BRANDED PRODUCTS DESPITE THEIR LOWER UNIT PRICES STILL PRIVATE LABEL MAINTAINS A STRONG POSITION IN THE FOUR MAJOR TISSUE MARKETS A FACT THAT COULD TEMPER PRICE INCREASES THE THREAT OF PRIVATE LABEL OR MORE ACCURATELY THE LINGERING THREAT OF PRIVATE LABEL CONTINUES TO BE IMPORTANT IN TERMS OF PRICING SAYS BRUCE KIRK AN ANALYST WITH SG WARBURG EVEN WITH PRICES PERCOLATING UPWARD THE PAPERPRODUCTS MARKET REMAINS AT OR NEAR 1990 LEVELS AT THAT TIME INTENSIFIED COMPETITION A FALTERING ECONOMY AND A WEAK PULP MARKET COMBINED TO DEPRESS PRICES THE PROLONGED RETAILING BATTLE CONTRIBUTED TO SCOTT PAPER CO'S RECENTLY ANNOUNCED RESTRUCTURING THAT INCLUDED A 381 MILLION AFTERTAX CHARGE ANALYSTS SAY THE RELENTLESS PRICE COMPETITION AMONG PAPER PRODUCTS REFLECTS A DEARTH OF VALUEADDED INNOVATIONS THERE HAVE BEEN A FEW MODEST PRODUCT DEVELOPMENTS SUCH AS FACIAL TISSUE LACED WITH LOTION AND PAPER TOWELS WITH ADDED PERFORATIONS TO ALLOW CONSUMERS TO USE ONLY THE AMOUNT THEY NEED NONETHELESS THERE'S NO DISCERNIBLE MARKET LEADER OUT FRONT WITH A FAR BETTER OR DIFFERENTIATED PRODUCT THAT REALLY ALLOWS THEM TO CONTROL THE CATEGORY MR KIRK SAYS BATHROOM TISSUE MARKETERS HAVE FACED THE GREATEST PRICE COMPETITION IN THE PAST SEVERAL YEARS PARTLY BECAUSE OF KIMBERLYCLARK CORP'S ENTRY INTO THE MARKET IN 1990 WITH A TOILETTISSUE EXTENSION OF ITS POPULAR KLEENEX FACIAL TISSUE BRAND WHILE THAT KLEENEX PRODUCT ISN'T YET AVAILABLE NATIONWIDE ITS SALES GREW 11 TO 313 MILLION IN THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES THE INTRODUCTION OF KLEENEX REALLY TRIGGERED THE TIGHT PRICING SAYS THOMAS SHUFELT A MARKETING EXECUTIVE AT GEORGIAPACIFIC CORP WHICH PRODUCES ANGEL SOFT BATHROOM TISSUE BUT THE PRICES HAVE FIRMED UP SOME RECENTLY AND WE HOPE THAT WE CAN GET SOME RELIEF 9402150103 940215 LETTERS TO THE EDITOR TAX INCENTIVES HELP CREATE JOBS IN RESPONSE TO YOUR FEB 3 EDITORIAL LABOR BLOWS RIGHT WHISTLE YOUR MISINTERPRETATION OF THE FACTS IS A DISSERVICE TO YOUR READERS AND TO IOWA'S ECONOMIC DEVELOPMENT EFFORTS YOUR COMMENTS CENTER AROUND IPSCO A CANADIAN STEEL COMPANY THAT PLANS TO LOCATE A 360 MILLION FACILITY AND INITIALLY EMPLOY 300 PEOPLE ALONG THE MISSISSIPPI RIVER IN MUSCATINE COUNTY THE BENEFITS OF THIS PROJECT FAR OUTWEIGH THE FINANCIAL INCENTIVE PACKAGE PROPOSED BY STATE AND LOCAL OFFICIALS YOUR STATEMENT THAT THE STATE WOULD PAY 243000 PER JOB IS WRONG AND MISREPRESENTS IOWA'S DEVELOPMENT STRATEGY THE FACTS ARE THESE IOWA IS INVESTING 3 MILLION IN UPFRONT ASSISTANCE TO HELP IPSCO TRAIN WELLPAID MANUFACTURING WORKERS AND DEFRAY STARTUP COSTS THE REMAINING ASSISTANCE ALL COMES IN THE FORM OF TAX INCENTIVES TIED TO THE ENORMOUS INVESTMENT IN MACHINERY AND EQUIPMENT REQUIRED TO BUILD A COMPETITIVE MANUFACTURING PLANT INDEED INVESTMENT TAX CREDITS AND EXEMPTION OF MACHINERY AND EQUIPMENT INVESTMENTS FROM PROPERTY TAXES ARE TWO BASIC ELEMENTS OF EVERY STATE'S ECONOMIC CLIMATE THE 70 MILLION IN TAXES NOT COLLECTED FROM IPSCO OVER THE COURSE OF 20 YEARS MERELY MAKES US COMPETITIVE WITH OTHER STATES THAT DON'T TAX EQUIPMENT MOREOVER YOU IGNORED THE PROJECT'S BENEFITS ADDITIONAL RELATED AND SUPPLIER MANUFACTURERS LIKELY TO BE ATTRACTED TO SERVE IPSCO THE INVESTMENT PACKAGE THAT WE HAVE OFFERED IPSCO IS AVAILABLE TO ANY COMPANY PLANNING A MAJOR EXPANSION IN IOWA AND WE'VE HAD RESULTS WEYERHAUSER EASTMAN KODAK LENNOX AND MAYTAG ARE ONLY A FEW OF THE MANY COMPANIES THAT HAVE CREATED THOUSANDS OF JOBS IN IOWA MEANWHILE I'VE RECOMMENDED EXEMPTING ALL NEW MACHINERY AND EQUIPMENT FROM PROPERTY TAXATION WHEN THE LEGISLATURE APPROVES REPEAL OF THIS TAX WE WILL NO LONGER HAVE TO OVERCOME THIS IMPEDIMENT TO HIGHPAYING JOBS IN MANUFACTURING 9402150102 940215 MARKETING & MEDIA ABC SCOLDS 2 EMPLOYEES FOR STAGING A NEWS SCENE NEW YORK ABC NEWS SAID IT REPRIMANDED TWO EMPLOYEES WHO STAGED A SCENE FOR A NEWS REPORT JAN 26 THE REPORT WHICH AIRED ON WORLD NEWS TONIGHT WITH PETER JENNINGS SHOWED CORRESPONDENT COKIE ROBERTS WEARING A COAT IN FRONT OF AN ELECTRONICALLY IMPOSED CAPITOL HILL SCENE MR JENNINGS UNAWARE THAT MS ROBERTS WAS ACTUALLY IN A STUDIO SEVERAL TIMES TOLD VIEWERS THAT SHE WAS LIVE AT THE CAPITOL MS ROBERTS WORE THE COAT AT THE REQUEST OF THE NEWSCAST'S EXECUTIVE PRODUCER RICK KAPLAN BOTH MR KAPLAN AND MS ROBERTS WERE REPRIMANDED ABC A UNIT OF CAPITAL CITIES/ABC INC SAID THE INCIDENT WAS A MISTAKE EVEN THOUGH IT HAD NO EDITORIAL EFFECT THE ACTION WAS SERIOUS BECAUSE IT MISLED OUR AUDIENCE SAID RICHARD WALD SENIOR VICE PRESIDENT IN A MEMO TO ABC NEWS STAFF 9402150101 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY NORDIC TAILGATE PARTY INTENSE IN TENTS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER IT IS 20 DEGREES BELOW ZERO AND APPROACHING MIDNIGHT AS THE HUMAN ICICLES SKI INTO CAMP THEY STASH THEIR SKIS IN A SNOWBANK AND ROLL UP THEIR NORWEGIAN FLAGS FOR THE NIGHT BUT BEFORE CRAWLING INTO THEIR TENTS IT'S TIME FOR SOME MITTENSLAPPING GOSPEL MUSIC WE'RE GOING TO SEE THE KING THEY SING NO ONE'S FREEZING THERE THE NEXT MORNING THE YOUNG CHRISTIANS OF NORWAY AWAKE STILL SHIVERING THEIR MILK IS FROZEN THEIR CAVIAR BREAKFAST PASTE IS FROZEN THEIR BREAD IS FROZEN THEIR HOT DOGS ARE FROZEN THIS IS HEAVEN FOR US IT'S AS CLOSE AS YOU CAN GET ON EARTH SAYS 17YEAROLD SIRI DALSMO THE RACE IS ABOUT TO START MAKE THAT THE RACE THE 30KILOMETER MEN'S CROSSCOUNTRY RACE IS THE OPENING OLYMPIC SHOWCASE FOR NORWAY'S SKIING IDOLS AND NORWEGIANS WILL PUT UP WITH ALMOST ANYTHING EVEN FROZEN CAVIAR TO WAVE A FLAG OR RING A BELL IN SUPPORT OF THEIR HEROES AS THEY SKI PAST IF NORWEGIANS WIN SAYS MS DALSMO STOMPING HER FEET TO WARD OFF FROSTBITE IT'S ALL WORTH IT IT IS OF COURSE THOMAS ALSGAARD AND BJORN DAHLIE THEIR LUNGS BURNING FROM THE POLAR AIR CAPTURE THE GOLD AND SILVER MEDALS AND ARE SERENADED ON TELEVISION BY A YOUNG BOY SINGING A NORWEGIAN FOLK SONG MR ALSGAARD BLUSHES AND DEDICATES HIS MEDAL TO THE LEGIONS WHO CHEERED HIM ON INSPIRING HE SAYS THE NORWEGIANS' ATTACHMENT TO CROSSCOUNTRY RACING IS AKIN TO THE AMERICAN MANIA FOR THE HOME FOOTBALL TEAM BUT THE NORWEGIANS TAKE TAILGATING TO EXTREMES NOT CONTENT TO THROW A COUPLE OF BURGERS ON A GRILL IN THE PARKING LOT THEY SKI INTO THE FOREST PITCH TENTS IN THE SNOW ALONGSIDE THE RACE COURSE AND PARTY FOR DAYS YOU MAY FIND THIS PECULIAR SAYS BJARNE HJELMTVEDT WHO MARKETS SEWING NOTIONS BUT YOU MUST REMEMBER THAT WE NORWEGIANS ARE BORN WITH SKIS ON OUR FEET OF COURSE THIS IS HARD ON OUR MOTHERS BUT THAT'S THE WAY IT IS A GENERATOR HUMS BEHIND HIS WELLAPPOINTED PUP TENT PROVIDING ELECTRICITY FOR HIS TELEVISION IT WAS 17 BELOW IN MY TENT WHEN I WOKE UP HE SAYS SWELLING WITH PRIDE A MORE TYPICAL TENT A TEPEE ACTUALLY IS THAT OF ARILD SANDSTEN WHO SHARES HIS SPACE WITH FRIEND TRULS RUUD AND THIS REPORTER MESSRS SANDSTEN AND RUUD DIG A HOLE IN THE SNOW FLOOR FOR A WOODBURNING STOVE AND THEN EXTEND THE CHIMNEY THROUGH THE POINTED ROOF NEXT LEDGES ARE CARVED IN THE SNOW AND COVERED WITH REINDEER SKINS THE SLEEPING BAGS ARE UNROLLED ON TOP OF THE SKINS CAN'T DO BETTER THAN REINDEER SKIN FOR KEEPING WARM SAYS MR RUUD A FORMER SHEEP FARMER WHO ANNUALLY HEADS TO THE MOUNTAINS TO HUNT ELK A LITTLE BOURBON HELPS TOO ADDS MR SANDSTEN A MANAGEMENT CONSULTANT WHO ALSO HEADS AN OSLO OUTDOORS CLUB LET'S SAY SKOAL HE SAYS PASSING AROUND GLASSES FILLED WITH JIM BEAM HE INTRODUCES MORE ANTIFREEZE A BOTTLE OF AQUAVIT THE NORWEGIANS' POTATOANDCARAWAY SCHNAPPS AND PROCEEDS TO DEFTLY DEAL OUT SLICES OF DRYSALTED LAMB LEG ELK SAUSAGE AND A NORWEGIAN VERSION OF SPAM CALLED BOG ONCE THE SUN GOES DOWN THE FEAST CONTINUES WITH A POT OF VEGETABLE SOUP WE'RE THREE LUCKY GUYS HE SAYS LADLING OUT THE STEAMING SOUP IT'S MINUS 25 IT'S THE OLYMPICS WE'VE GOT SOUP THIS IS GREAT THE 50YEAROLD MR SANDSTEN WAS THE ONE WHO FIRST PROPOSED TO THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE THAT THE NORWEGIAN TRADITION OF TAILGATING CROSSCOUNTRY RACES BE EXTENDED TO THE GAMES THIS IS A GOOD OCCASION FOR FAMILIES TO GO OUT AND BE IN NATURE HE SAYS IT WILL HELP INSPIRE THEM TO TAKE CARE OF OUR GREEN AREAS ORGANIZERS ESTIMATE THAT SEVERAL THOUSAND NORWEGIANS WILL BE CAMPING OUT ALONG THE RACE COURSE BEFORE THE OLYMPICS FINISH ON THIS NIGHT AS THE TEMPERATURE PLUMMETS MESSRS SANDSTEN AND RUUD VISIT THE TENTS IN THEIR AREA TO SEE THAT ALL IS WELL NINE YOUNG MEN WHO WALKED 25 MILES OVER THE MOUNTAINS KEEP WARM WITH A HEATED DISCUSSION OVER THE ETIQUETTE OF CROSSCOUNTRY CHEERING BOOING IS BAD SPORTSMANSHIP SAYS CARSTEN JOHANSEN WE CHEER FOR EVERYONE EVEN THE SWEDES ASKS ONE OF THE OTHERS YES EVEN THOUGH LAST YEAR THE SWEDES BOOED THE NORWEGIANS AT A RACE IN NORWAY INSISTS MR JOHANSEN OF COURSE WE CHEER MORE FOR THE NORWEGIANS THE FRIENDS PASS AROUND A BOTTLE OF STOMACHWARMING JAGERMEISTER A GERMAN LIBATION LET'S SAY SKOAL' SAYS MR SANDSTEN SKOAL SAYS EVERYONE NEXT STOP IS A TENT FULL OF 14 GIRL SCOUTS THEY ARE WARM AND GOBBLING DOWN BEEF STEW IT'S GOOD FOR THE GIRLS TO STRETCH THEIR LIMITS AND KNOW THEY CAN LIVE COMFORTABLY IN MINUS 15 MINUS 20 WEATHER SAYS SCOUT LEADER SISSEL KRISTIN OSTBY MR SANDSTEN CHEERED BY THAT ATTITUDE ASKS FOR A SONG THE GIRLS HAPPILY RESPOND WITH A FOLK SONG ABOUT A MAN GOING FISHING NEARBY IS THE OSLO ADVENTURERS CLUB COFOUNDER JOHN MOSVOLD SHOWS OFF THE PARTY TENT COMPLETE WITH A TELEVISION AND STEREO AFTER A COUPLE OF DAYS OF LAMBADA DANCING ON SKIS AND PLAYING VOLLEYBALL ON SKIS HIS GROUP IS EAGER FOR THE REAL RACES TO BEGIN AND TO GET WARM THE BIG THING FOR TONIGHT IS THAT WE'RE GOING INTO LILLEHAMMER FOR SHOWERS HE SAYS A SAUNA TOO THE COLD DRIVES MOST OF THE CAMPERS INTO THEIR SLEEPING BAGS SHORTLY AFTER MIDNIGHT WE'LL HAVE BACON AND EGGS IN THE MORNING MR SANDSTEN TELLS HIS TENT MATES IF YOU GET COLD TONIGHT THINK OF BACON AND EGGS IN THE MORNING JUST AFTER THE BACON AND EGGS THREE COLLEGE STUDENTS FROM THE SOUTHERN PART OF NORWAY LURED BY THE SMELL STICK THEIR HEADS INTO THE TENT ASKING IF THEY CAN COME IN AND WARM UP THEIR FEET THEY HAD DRIVEN 200 MILES DURING THE NIGHT AND HAD PITCHED A TENT TOO SMALL FOR A STOVE THIS IS A ONCEINALIFETIME EXPERIENCE SAYS TORGEIR NILSEN SPEAKING OF THE OLYMPICS NOT THE COLD TOES IN NORWAY YOU JUST GET UP AND HEAD FOR THE COLD YOU DON'T HAVE MUCH CHOICE IN NORWAY IT'S ALWAYS COLD HE AND HIS FRIENDS DECIDE TO BUILD AN IGLOO BUT ONLY AFTER THE RACE IS OVER AS THE STARTING TIME NEARS THE HOST OF CAMPERS AND THOUSANDS OF COUNTRYMEN WHO HAVE COME UP ONLY FOR THE DAY SEARCH FOR PLACES WARMED BY THE LATE MORNING SUN THEY DO THE WAVE THEY SHOUT ENCOURAGEMENT TO ALL THE RACERS EVEN THE SWEDES BUT THEY SAVE THE FLAG FLYING AND BELL RINGING FOR THE NORWEGIANS THE YOUNG CHRISTIANS AGAIN BREAK INTO SONG VICTORY IS OURS THEY SING OVER AND OVER VICTORY IS OURS 9402150100 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RUSSIA'S HUGGABLE CUBS ARE BEATABLE TOO BY MARYA FOGEL STAFF REPORTER OF THE WALL STREET JOURNAL IF ANYTHING IN THE OLD SOVIET UNION LIVED UP TO THE IMAGE OF THE RUSSIAN BEAR IT WAS THE OLYMPIC HOCKEY TEAM FEATURING GRUFF GRISLY VETERANS MANY OF THEM OFFICERS IN THE RED ARMY THE TEAM MAULED THE WORLD EVERY FOUR YEARS PUTTING ITS CLAWS ON ALL BUT TWO OF THE GOLD MEDALS SINCE 1956 THIS YEAR'S RUSSIAN TEAM STRIPPED OF THE OLD MENACING CCCP JERSEYS LOOKS MORE LIKE THE BEAR'S HUGGABLE CUBS IT IS THE YOUNGEST TO EVER SKATE OUT OF MOSCOW THERE'S MORE PEACH FUZZ THAN STUBBLE NOT A SINGLE PLAYER COMES FROM THE ARMY CLUB INDEED THE TEAM SHOWED ITS VULNERABILITY LOSING TO FINLAND YESTERDAY 50 TO FALL TO 11 RUSSIA BEAT NORWAY IN ITS OPENER IT TAKES A LONG TIME TO BECOME A MASTER AT THIS GAME MUSES VIKTOR KUZKIN A STAR DEFENSEMAN AND LIEUTENANT COLONEL ON THE GOLD MEDAL TEAMS OF 1964 1968 AND 1972 UNFORTUNATELY AT 18 THE KIDS ARE ALREADY TRYING TO BECOME PROFESSIONAL PLAYERS IN CANADA OR AMERICA SO IT GOES IN THE POSTCOMMUNIST SPORTS WORLD WHERE A CONTRACT WITH NORTH AMERICA'S NATIONAL HOCKEY LEAGUE GLITTERS MORE THAN A GOLD MEDAL AND CONGRATULATIONS FROM THE CENTRAL COMMITTEE OVER THE PAST FOUR YEARS FOR INSTANCE 22 PLAYERS FROM THE CENTRAL SPORTS CLUB OF THE ARMY CSKA ONCE A VERITABLE FACTORY OF OLYMPIC HOCKEY TALENT HAVE DEFECTED TO THE NHL INCLUDING STARS LIKE SERGEI FEDOROV AND VYACHESLAV FETISOV VIKTOR TIKHONOV THE CSKA AND OLYMPIC HEAD COACH IS STILL PROWLING BEHIND THE BENCH AND HE IS AS SURLY AS EVER ASKED WHETHER HE WOULD CONSIDER FOLLOWING THE LEAD OF HIS DEFECTING PLAYERS AND COACH IN THE NHL THE OLD MASTER WHO HAS GUIDED FOUR OLYMPIC TEAMS STOMPS AWAY GRUMBLING YOU REPORTERS ALWAYS ASK THE SAME QUESTIONS I'M SICK OF IT THIS YEAR THOUGH HIS IRRITABILITY IS UNDERSTANDABLE THE GOLD MEDAL IS NO LONGER A VIRTUAL LOCK THE WANDERLUST OF MANY OF RUSSIA'S BEST FINALLY LEVELING THE INTERNATIONAL PLAYING ICE HIS TEAM DIDN'T COME TOGETHER UNTIL LATE JANUARY AND THEN IT WAS BARELY RECOGNIZABLE WITH ITS ROSTER OF UNPROVEN YOUTHFUL TALENT AND HE KNOWS HIS PLAYERS ARE MORE INTERESTED IN IMPRESSING THE UBIQUITOUS NHL SCOUTS WITH THEIR INDIVIDUAL ABILITIES THAN LISTENING TO HIS HOARY LECTURES ABOUT TEAMWORK TODAY THE HALLOWED CSKA ARENA IS DEFILED WITH SPONSORS' LOGOS MCDONALD'S COCACOLA AND PITTSBURGH'S IRON CITY BEER ALTHOUGH THEY HAVE LOST MANY PLAYERS TO THE LURE OF THE WEST CSKA OFFICIALS ALSO OWE PLENTY TO THE NHL AND CAPITALISM MR KUZKIN'S OLD NO 4 JERSEY RECENTLY RETIRED HANGS ABOVE A RINK WHERE THE RUSSIAN PENGUINS NOW PLAY THE ARMY SQUAD HAVING BEEN RENAMED AFTER THE NHL'S PITTSBURGH TEAM THAT RESCUED CSKA FROM FINANCIAL DISASTER BUT THEY DON'T HAVE TO LIKE IT THE TRIM 54YEAROLD MR KUZKIN WHO COACHES THE RUSSIAN PENGUINS ACHES FOR THE DAYS WHEN PLAYERS SET OLYMPIC SUPREMACY AS THEIR HIGHEST GOAL IT WAS A DIFFERENT TIME THE GOLDEN ERA WE DIDN'T EVEN DREAM OF PLAYING PROFESSIONALLY HE REMEMBERS HE RECALLS A PLAYING CAREER WITH CSKA THAT BEGAN WHEN HE WAS 18 AND ENDED YEARS BEFORE SUCH DREAMS WERE ALLOWED OF COURSE HE CONCEDES IT WOULD HAVE BEEN INTERESTING EVERY ATHLETE WANTS TO TEST HIMSELF AT A HIGHER LEVEL SUCH A CHALLENGE IS THE ALTRUISTIC NOTE OF THE NHL'S SIREN CALL THE BIG ENTICEMENT IS THE MONEY MR FEDOROV RECENTLY RENEWED HIS CONTRACT WITH THE DETROIT RED WINGS FOR 117 MILLION OVER FOUR YEARS MARK KELLY A HOCKEY SCOUT WHO REPRESENTS THE PITTSBURGH SIDE OF THE CSKAPENGUINS JOINT VENTURE CONCEDES THAT THE NHL IS TARGETING MORE AND MORE YOUNG RUSSIAN STARS NHL TEAMS ALREADY ARE SIZING UP PROMISING RUSSIAN 17YEAROLDS FOR THIS YEAR'S DRAFT AND MOST IF NOT ALL OF THOSE DRAFTED WILL PACK THEIR BAGS MR TIKHONOV HAS BEEN FIGHTING TO PERSUADE THE NHL NOT TO POACH PLAYERS UNDER THE AGE OF 22 BUT BY THE TIME THE NEXT WINTER OLYMPICS ARE HELD THE ISSUE COULD BE MOOT HOCKEY MAY FOLLOW BASKETBALL'S LEAD AND PERMIT PROFESSIONALS TO COMPETE IN THE GAMES LIKE THE US HOOPSTERS' DREAM TEAM THE WORLD'S HOCKEY POWERHOUSES MIGHT BE ASSEMBLING SENSATIONAL ALLSTAR SQUADS OF TOP PROFESSIONALS RUSSIA'S NHL ELITE COULD THEN RETURN HOME FOR THE GAMES IT'S AN ATTRACTIVE PROSPECT BUT IT CERTAINLY ISN'T ENOUGH TO SATISFY THE OLD GUARD WE HAVE ONLY ONE DREAM HERE SAYS MR KUZKIN AND THAT IS TO BRING THE TEAM BACK TO WHAT IT WAS BEFORE 9402150099 940215 JOHN LABATT SHUTS DOWN 30 OF CANADIAN OUTPUT TORONTO JOHN LABATT LTD SHUT DOWN ABOUT 30 OF ITS DOMESTIC BEER PRODUCTION BY LOCKING OUT MORE THAN 1000 WORKERS IN QUEBEC AFTER THEY REJECTED A CONTRACT PROPOSAL THE MOVE REFLECTS THE DETERMINATION OF CANADIAN BREWERS TO CUT COSTS BECAUSE OF AN EXPECTED INCREASE IN LOWPRICED IMPORTS FROM THE US FOLLOWING LAST SUMMER'S BEER TRADE AGREEMENT WE HAVE A SITUATION WHERE WE NEED TO BE COSTCOMPETITIVE WITH AMERICAN BREWERS THEY'RE GOING TO BE IN OUR SANDBOX WITHIN THE NEXT FEW MONTHS SAID LABATT SPOKESMAN ALAIN BOLDUC THE LOCKOUT WHICH TOOK EFFECT OVER THE WEEKEND HALTS PRODUCTION AT THE PLANT WHICH PRODUCES BEER FOR THE QUEBEC MARKET LABATT'S SECOND LARGEST IN CANADA AFTER ONTARIO MR BOLDUC SAID THE COMPANY HAS UP TO THREE WEEKS OF INVENTORY TO CONTINUE SUPPLYING ITS DISTRIBUTION OUTLETS IN QUEBEC FRANCOIS LAPORTE SPOKESMAN FOR TEAMSTERS UNION LOCAL 1999 SAID THERE WERE NO PLANS TO RESUME TALKS WITH THE COMPANY HE SAID THE UNION WAS WAITING FOR LABATT TO MAKE THE FIRST MOVE THE PROPOSED PACT WON THE APPROVAL OF A MAJORITY OF THE UNION'S EXECUTIVE COMMITTEE BUT IT WAS SOUNDLY DEFEATED BY 71 OF THE UNION'S MEMBERSHIP 9402150098 940215 DUPONT SAYS JURY DECIDES IN ITS FAVOR IN BENLATE LAWSUIT WILMINGTON DEL DUPONT CO SAID A FLORIDA JURY RULED IN ITS FAVOR IN A LAWSUIT BROUGHT BY TWO BLUEBERRY GROWERS WHO ALLEGED THAT THE COMPANY'S BENLATE DF FUNGICIDE PRODUCT HAD HARMED THEIR CROPS THE TRIAL IN THE 10TH JUDICIAL COURT IN POLK COUNTY BEGAN JAN 3 THE CHEMICAL CONCERN SAID THE PLAINTIFFS HAD BEEN SEEKING 8 MILLION IN DAMAGES DUPONT SAID THE JURY RULED THAT THERE WAS NO PRODUCT DEFECT AND NO NEGLIGENCE ON THE PART OF DUPONT AND CALLED THE VERDICT A MAJOR TRIAL WIN IN ITS BATTLE TO VINDICATE THE CONTROVERSIAL BENLATE PRODUCT ATTORNEYS FOR THE TWO GROWERS COULDN'T BE REACHED LATE YESTERDAY DUPONT STILL FACES HUNDREDS OF LAWSUITS FROM FARMERS PLANTNURSERY OPERATORS AND THE LIKE WHO CONTEND THAT THE FUNGICIDE HURT THEIR CROPS THE COMPANY RECALLED THE GRANULATED FORM OF BENLATE IN LATE 1991 AND LATER PAID OUT NEARLY 500 MILLION IN BENLATE CLAIMS BUT IT HALTED SUCH PAYOUTS IN NOVEMBER 1992 ASSERTING THAT TESTS IT SPONSORED HAD PROVED THE PRODUCT COULDN'T HAVE CAUSED THE DAMAGE THE PLAINTIFFS ALLEGE SINCE THEN THE COMPANY HAS EITHER GONE TO COURT OVER SUCH CLAIMS OR SETTLED PRIVATELY IN THE CASES THAT HAVE GONE TO TRIAL DUPONT HAS HAD A MIXED RECORD FOR THE MOST PART IN CASES WHERE IT HAS BEEN ORDERED TO PAY DAMAGES PLAINTIFFS HAVE RECEIVED MUCH LESS THAN THEY HAD BEEN SEEKING IN ONE FEDERAL COURT CASE THE PLAINTIFFS SETTLED WHILE THE JURY WAS DELIBERATING IN THE LATTER PART OF 1993 ONE FLORIDA COURT FOUND THE COMPANY LIABLE FOR 3 MILLION IN DAMAGES TO AN ORCHID GROWER AND ANOTHER JURY ORDERED DUPONT TO PAY 32 MILLION FAR LESS THAN THE 28 MILLION PLAINTIFFS HAD BEEN SEEKING TO CERTAIN NURSERY OWNERS AN ARKANSAS JURY FOUND THE COMPANY LIABLE FOR 107 MILLION IN ANOTHER CASE BUT DUPONT ALSO WON A TEXAS BENCH TRIAL AND HAS SUCCEEDED IN GETTING SOME OTHER COMPLAINTS THROWN OUT 9402150097 940215 INTERNATIONAL US ARISTIDE DIFFER ON PLAN TO AID HAITI PROPOSAL FOR A DEMOCRACY DOESN'T SET FIRM DATE FOR PRESIDENT'S RETURN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A WIDENING BREACH WITH HAITIAN PRESIDENT JEAN BERTRAND ARISTIDE THE US IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY ON THE ISLAND NATION BUT DOESN'T INCLUDE A FIRM DATE FOR THE OUSTED PRESIDENT'S RETURN THE PLAN WHICH IS BEING PUSHED BY A HAITIAN PARLIAMENTARY DELEGATION CALLS FOR MR ARISTIDE'S EVENTUAL RESTORATION AFTER HE NAMES A NEW PRIME MINISTER AND A NEW BROADBASED GOVERNMENT TAKES CERTAIN ACTIONS BUT UNLIKE A PREVIOUS AGREEMENT LAST SUMMER TO END THE CRISIS IN HAITI THE CURRENT BLUEPRINT DOESN'T INCLUDE A SPECIFIC TIMETABLE FOR THE RESTORATION OF MR ARISTIDE WHO WAS OVERTHROWN IN A SEPTEMBER 1991 MILITARY COUP AFTER BEING ELECTED BY A WIDE MAJORITY A SENIOR US OFFICIAL INSISTED THAT THE ADMINISTRATION HAD NEVER CALLED FOR MR ARISTIDE'S IMMEDIATE RETURN AND WASN'T BACKING AWAY FROM HIM INSTEAD IT HAS ALWAYS PREFERRED TO HAVE HAITI FIRST BUILD A FUNCTIONING GOVERNMENT HOWEVER THE PROPOSAL COULD POSSIBLY LEAD TO A SITUATION IN WHICH MR ARISTIDE DOESN'T RETURN MICHAEL BARNES A FORMER US CONGRESSMAN WHO IS MR ARISTIDE'S CHIEF AMERICAN ADVISER SAID YESTERDAY THAT I WOULDN'T RECOMMEND THAT THE GOVERNMENT OF HAITI ENTER INTO ANY NEW AGREEMENT THAT DOESN'T ASSURE THE RAPID RETURN OF THE PRESIDENT ON A DATE CERTAIN MR BARNES WHOSE COMMENTS REFLECT MR ARISTIDE'S VIEWS COMPLAINED THAT THE US HASN'T FOLLOWED THROUGH ON ITS COMMITMENT TO INCREASE INTERNATIONAL SANCTIONS AGAINST HAITI'S MILITARY RULERS BY JAN 15 THE SENIOR US OFFICIAL DISPLAYING PIQUE WITH MR ARISTIDE INDICATED THAT THE HAITIAN PRESIDENT EITHER LACKS THE FLEXIBILITY OR DOESN'T UNDERSTAND THE STEPS THAT WILL BE NECESSARY TO RESOLVE THE CRISIS IN HAITI AND PREPARE FOR HIS RETURN SPEAKING OF THE PARLIAMENTARIANS' PLAN THE US OFFICIAL ACCUSED MR ARISTIDE OF BEING NOT FORTHCOMING IN DOING ANY OF THIS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION LAWRENCE PEZZULLO THE STATE DEPARTMENT'S SPECIAL ADVISER ON HAITI HAS BEEN PRESSING MR ARISTIDE FOR ABOUT 10 DAYS TO ACCEPT THE LATEST PLAN MR ARISTIDE WANTS THE INTERNATIONAL COMMUNITY TO MOVE FIRST WITH MORE SANCTIONS THROUGH THE UNITED NATIONS SECURITY COUNCIL THE US ALONG WITH CANADA FRANCE AND VENEZUELA HAS FORMULATED HAITIAN SANCTIONS THAT WOULD EXPAND PENALTIES ALREADY IN FORCE BY NATIONS IN THIS HEMISPHERE THE CONTEMPLATED SANCTIONS INCLUDE ASKING UN MEMBERS TO FREEZE THE OVERSEAS ASSETS AND RESTRICT THE TRAVEL OF MILITARY LEADERS AND THEIR SUPPORTERS AND TO IMPOSE A TRADE EMBARGO AND BAN ON COMMERCIAL AIR FLIGHTS BUT ANOTHER SENIOR US OFFICIAL INDICATED THAT THERE COULD STILL BE A LONG CONSULTATION PROCESS AHEAD AT THE UN WE'RE NOT ON A FAST TRACK TODAY BUT WE'RE LAYING THE GROUNDWORK THE OFFICIAL SAID AND THE OFFICIAL WHO BRIEFED REPORTERS HERE YESTERDAY INDICATED HE WASN'T ENTHUSIASTIC ABOUT IMPOSING NEW SANCTIONS BECAUSE THEY COULD DESTROY HAITI COMPLETELY THE SENIOR US OFFICIAL INSISTED THAT THE US IS PURSUING AS DILIGENTLY AS IT MAY A PROGRAM OF RESTORING DEMOCRACY AND THE PRESIDENT OF THE COUNTRY BUT THE OFFICIAL ADDED THAT MR ARISTIDE NEEDS TO UNDERSTAND THAT HE MUST WORK WITH A BROADBASED GOVERNMENT AND THAT WOULD MEAN CURBING SOME OF HIS PRESIDENTIAL POWERS MR ARISTIDE GOT INTO A SPAT WITH THE CLINTON ADMINISTRATION EARLIER THIS MONTH WHEN HE ACCUSED THE US OF ERECTING A FLOATING BERLIN WALL TO STOP HAITIANS FROM FLEEING THE ISLAND'S MILITARY DICTATORSHIP STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID MR ARISTIDE'S COMMENT ON THE US POLICY OF INTERDICTION AND REPATRIATION AMOUNTS IN EFFECT TO ENCOURAGING PEOPLE TO LEAVE HAITI IN A WAY THAT COULD RESULT IN DEATHS AT SEA THE ADMINISTRATION BELIEVES THE CURRENT EMBARGO IMPOSED BY THE ORGANIZATION OF AMERICAN STATES IS SQUEEZING HAITI'S MILITARY RULERS AND BEGINNING TO CAUSE DIVISIONS WITHIN THEIR RANKS UNDER THE PLAN PROPOSED BY THE HAITIAN MEMBERS OF PARLIAMENT THE LEGISLATURE WOULD APPROVE AN AMNESTY FOR THOSE INVOLVED IN THE 1991 COUP THE MILITARY LEADER RAOUL CEDRAS WOULD RETIRE AND MICHEL FRANCOIS THE POWERFUL HEAD OF THE PORTAUPRINCE POLICE WOULD BE TRANSFERRED TO ANOTHER POST THE NEW PRIME MINISTER WOULD THEN BE CONFIRMED BY HAITI'S PARLIAMENT PROMPTING THE END OF INTERNATIONAL SANCTIONS AND LEADING TO MR ARISTIDE'S RETURN 9402150096 940215 BUSINESS BRIEF WILLIAMS COS UNIT TO ACQUIRE GAS PLANTS FROM UTILITY IN NEW MEXICO WILLIAMS COS TULSA OKLA SAID A UNIT AGREED TO PAY PUBLIC SERVICE CO OF NEW MEXICO 155 MILLION FOR NATURALGAS GATHERING AND PROCESSING ASSETS IN NEW MEXICO WILLIAMS SAID ITS WILLIAMS FIELD SERVICES GROUP WHICH SPECIALIZES IN GATHERING AND PROCESSING NATURAL GAS AGREED TO ACQUIRE PUBLIC SERVICE FACILITIES AND OPERATIONS IN NEW MEXICO'S SAN JUAN AND PERMIAN BASINS WILLIAMS A PIPELINE NATURALGAS AND TELECOMMUNICATIONS COMPANY SAID THE PUBLIC SERVICE ASSETS INCLUDE TWO NATURALGAS PROCESSING PLANTS NEAR BLOOMFIELD NM A PROCESSING PLANT SOUTHEAST OF BLOOMFIELD A SMALLER PROCESSING PLANT AND AN AMINE TREATMENT PLANT NEAR CARLSBAD NM AND APPROXIMATELY 1400 MILES OF ASSOCIATED GASGATHERING SYSTEMS A SPOKESMAN FOR PUBLIC SERVICE BASED IN ALBUQUERQUE NM SAID THE SALE IS RIGHT ON LINE WITH THE UTILITY COMPANY'S PLANS TO SHED GASGATHERING OPERATIONS AND FOCUS ON ELECTRIC AND GAS SERVICES 9402150095 940215 FEDERATED PLANS MEETINGS WITH RH MACY CREDITORS NEW YORK FEDERATED DEPARTMENT STORES INC WILL MEET WITH CREDITORS OF RH MACY & CO THIS WEEK THE FIRST FORMAL STEPS BY THE DEPARTMENT STORE RETAILER TO WOO CREDITORS IN ITS PLAN TO MERGE WITH MACY FEDERATED EXECUTIVES WILL MEET WITH SECURED CREDITORS OF MACY SUCH AS FIDELITY INVESTMENTS TODAY AT THE NEW YORK OFFICES OF JONES DAY REAVIS & POGUE THE CLEVELANDBASED LAW FIRM THAT REPRESENTS FEDERATED FEDERATED CONFIRMED IT WILL MEET WEDNESDAY WITH MACY'S UNSECURED CREDITORS FEDERATED RECENTLY PAID 4493 MILLION TO ACQUIRE HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S HOLDINGS OF CERTAIN MACY'S DEBT THE DEBT REPRESENTS A MAJOR CLAIM IN MACY'S CHAPTER 11 BANKRUPTCY REORGANIZATION AND ITS PURCHASE GIVES FEDERATED A MAJOR VOICE IN FASHIONING A REORGANIZATION FEDERATED HAS SAID IT WANTS TO MERGE WITH MACY WHICH HAS SAID IT WANTS TO REMAIN INDEPENDENT FEDERATED HAS BEEN MEETING QUIETLY ON A ONEONONE BASIS WITH CREDITORS' REPRESENTATIVES EIGHT MAJOR GROUPS OWED 6 BILLION BY MACY TO EXPLAIN WHY IT WANTED TO MERGE WITH MACY BUT THIS WEEK MARKS THE FIRST OFFICIAL GROUP MEETINGS WITH CREDITORS 9402150094 940214 ABREAST OF THE MARKET ANALYSTS WARN PROFIT GROWTH MAY SLOW CREATING A BUMPY ROAD FOR STOCK PRICES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CORPORATE AMERICA'S PROFIT STREAK CONTINUED IN THE FOURTH QUARTER BUT SOME ANALYSTS WARN THAT FUTURE EARNINGS GAINS PROBABLY WILL BE LESS SPECTACULAR AND HARDER TO COME BY IF THEY ARE RIGHT THE STOCK MARKET COULD HIT SOME POTHOLES WITH INTEREST RATES LIKELY TO MOVE HIGHER IN COMING MONTHS INVESTORS WILL LOOK INCREASINGLY TO ROBUST EARNINGS REPORTS TO POWER THE MARKET UPWARD SO FAR CORPORATE AMERICA HAS DELIVERED ACCORDING TO ZACKS INVESTMENT RESEARCH 60 OF THE 711 COMPANIES IN THE DOW JONES INDUSTRY GROUPS HAVE REPORTED EARNINGS IN LINE WITH OR BETTER THAN ANALYSTS' ESTIMATES THOSE COMPANIES THAT SURPASSED EXPECTATIONS DID SO BY 23 ON AVERAGE MOREOVER FOURTHQUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES AND GAINS ROSE 253 FROM THE YEAREARLIER QUARTER THAT FIGURE SURPASSES THE 198 GROWTH RATE IN THE THIRD QUARTER BUT DON'T LOOK FOR REPEAT PERFORMANCES IN THE QUARTERS TO COME NO ONE EXPECTS THE ECONOMY TO GROW ANY FASTER THAN IT DID IN THE FOURTH QUARTER AND NEITHER WILL CORPORATE PROFITS MANY ANALYSTS CONCLUDE I THINK EARNINGS WILL STILL GROW BUT AT A SLOWER RATE THAN LAST YEAR SAYS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS THAT'S ONE REASON SHE SAYS THAT SOME OTHER STOCK STRATEGISTS ARE BEARISH ON THE MARKET THEY FEEL THAT ONCE EARNINGS GROWTH PEAKS THE STOCK MARKET STARTS TO DECLINE BUT MS GARZARELLI SAYS ONE ONLY HAS TO LOOK BACK TO 1963 A PERIOD WHICH SHE LIKENS TO THE CURRENT ONE AND NOTICE THAT THE STOCK MARKET KEPT RISING EVEN THOUGH PROFITS HAD ALREADY PEAKED NO DOUBT THE KEY TO SUSTAINED PROFIT GROWTH IN COMING QUARTERS WILL BE STRONGER DEMAND FOR GOODS AND SERVICES AND THE ABILITY FOR COMPANIES TO RAISE PRICES THOUGH PROFITS GREW AT A DOUBLEDIGIT RATE AS THE ECONOMY SOARED IN THE FOURTH QUARTER REVENUE GROWTH CONTINUED TO LAG SIGNIFICANTLY SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT AT ZACKS INVESTMENT INDEED AS HAS BEEN THE CASE FOR THE PAST FOUR QUARTERS MOST OF THE PROFIT GAINS WERE DUE TO COSTCUTTING AND LOW INTEREST RATES BETTER PRICING CERTAINLY IS GOING TO BE THE KEY TO BETTER EARNINGS SAYS MR ZACKS HE NOTES THAT SEVERAL OF THE COMPANIES TURNING IN POSITIVE FOURTHQUARTER EARNINGS SURPRISES HAD PRICING POWER THESE INCLUDED AUTO COMPANIES BUILDING MATERIALS CONCERNS FOREST PRODUCTS FIRMS AND PAPER PRODUCTS COMPANIES WHAT'S MORE MANY OF THE COMPANIES THAT DISAPPOINTED INVESTORS WITH THEIR EARNINGS REPORTS WERE IN INDUSTRIES THAT ARE STILL SUFFERING FROM A LACK OF PRICING POWER AMONG THEM ARE PRECIOUS METALS PRODUCERS ALUMINUM COMPANIES CONTAINER AND PACKAGING FIRMS AIRLINES AND COMPUTER MAKERS BUT WHILE PRICING MEANT POWER FOR MANY CORPORATIONS MR ZACKS DOESN'T EXPECT IT TO BECOME A BROADBASED TREND AT SOME STAGE HE SAYS ALL OF THAT COSTCUTTING REACHES A POINT OF DIMINISHING RETURNS FOR THE ECONOMY AS A WHOLE HE EXPLAINS THAT AS COMPANIES CONTINUE TO CUT COSTS AND LAY OFF WORKERS DEMAND WILL CONTINUE TO BE SUBDUED GIVING FIRMS VERY LITTLE LEEWAY TO RAISE PRICES IN 1994 HE PROJECTS EARNINGS WILL GROW 1704 A SLOWDOWN FROM LAST YEAR'S ESTIMATED 2375 AND WHILE THAT'S QUITE RESPECTABLE CONSIDERING THE MATURITY OF THE BUSINESS CYCLE SOME ANALYSTS FEAR THAT IT WON'T BE ROBUST ENOUGH FOR THE LIKES OF STOCK INVESTORS GAIL DUDACK STOCK STRATEGIST AT SG WARBURG WORRIES THAT THE STRONG ECONOMY IN THE FOURTH QUARTER HAS INFLATED EARNINGS EXPECTATIONS ON WALL STREET SHE THINKS THE STOCK MARKET COULD TAKE A TUMBLE IF THE STREET'S SUGARCOATED EARNINGS FORECASTS AREN'T MET THE RESULTS OF THE FOURTHQUARTER OVERALL HAS BOLSTERED CORPORATE AMERICA AND ANALYSTS WHO ARE NOW LOOKING AT THE POSSIBILITY OF PUTTING INTO PLACE PRICE INCREASES SHE SAYS BUT MS DUDACK IS NOT SO CONFIDENT THAT PRICING INCREASES CAN EASILY BE PASSED ALONG TO CUSTOMERS SHE SAYS MANY INDUSTRIES ARE STILL PLAGUED WITH OVERCAPACITY AND EVEN THOSE COMPANIES THAT ARE FACING BLOCKBUSTER DEMAND ARE FAVORING INCREASING THEIR MARKET SHARE OVER RAISING PRICES THE CONSENSUS IS THAT PRODUCTIVITY PLUS PRICING POWER WILL COMBINE TO CREATE SPECTACULAR EARNINGS IN 1994 SHE SAYS WHILE THE POTENTIAL FOR THAT EXISTS I THINK IT'S 5050 MY BIGGEST CONCERN IS THAT THE ECONOMIC NEWS HAS BUILT UP CONFIDENCE AMONG CORPORATIONS AND ANALYSTS AND THERE ARE GOING TO BE SOME DISAPPOINTMENTS HERE WHILE MS GARZARELLI OF LEHMAN BROTHERS REMAINS BULLISH SHE THINKS INVESTORS CAN MAXIMIZE THEIR GAINS BY UNEARTHING SECTORS OF THE MARKET THAT OFFER BETTERTHANEXPECTED EARNINGS GROWTH IN HER VIEW STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE WILL OFFER THE GREATEST GAINS FOR INVESTORS FOR INSTANCE SHE IS PROJECTING AN UPTURN IN PLANT AND EQUIPMENT SPENDING THROUGH 1995 THAT SHOULD HELP BOOST HEAVY MACHINERY COMMODITY AND BUILDING STOCKS SHE ALSO EXPECTS CONSUMER DURABLES SUCH AS AUTOS AND APPLIANCES TO CONTINUE FARING WELL MAKING THOSE STOCKS AN ATTRACTIVE INVESTMENT ALL THESE SECTORS SHOULD GROW TWICE AS FAST AS GROSS DOMESTIC PRODUCT SO THEIR EARNINGS SHOULD GROW TWICE AS FAST AS THE STANDARD & POOR'S 500STOCK INDEX SAYS MS GARZARELLI EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE SAYS INVESTORS ARE LOOKING AT THE BEST OF BOTH WORLDS THE THING TO BE IMPRESSED WITH IS HOW WELL PROFITS HAVE COME ALONG WITHOUT MUCH TOPLINE GROWTH HE SAYS I THINK THIS YEAR YOU ARE GOING TO SEE SOME PRICING POWER AND FOR THE FIRST TIME SOME UNIT SALES GROWTH STOCKS ENDED MIXED IN AN ABBREVIATED TRADING SESSION YIELDING TO A SEVERE WINTER SNOWSTORM THE NEW YORK STOCK EXCHANGE DECIDED TO STOP TRADING AT 230 PM EST INSTEAD OF THE NORMAL 4 PM CLOSE IT WAS THE FIRST TIME BIG BOARD TRADING WAS CURTAILED BECAUSE OF THE WEATHER SINCE SEPT 27 1985 WHEN THE EXCHANGE WAS CLOSED ALL DAY BECAUSE OF HURRICANE GLORIA THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALSO CLOSED EARLY THE DOW JONES INDUSTRIAL AVERAGE EASED 056 POINTS TO 389478 STANDARD & POOR'S 500STOCK INDEX GAINED 125 TO 47018 AND THE NASDAQ COMPOSITE INDEX LOST 203 TO 78139 FOR THE WEEK THE DOW INDUSTRIALS GAINED 06 THE S&P 500 INCHED UP 008 AND THE NASDAQ COMPOSITE CLIMBED 05 VOLUME TOTALED A MODEST 2118 MILLION SHARES DOWN FROM 3258 MILLION SHARES ON THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1214 TO 801 STOCKS WERE MIXED IN SPITE OF A LABOR DEPARTMENT REPORT SHOWING THAT INFLATION WAS WELL UNDER CONTROL THE NEWS SPARKED A RALLY IN THE BOND MARKET BUT STOCK INVESTORS WERE MORE SUBDUED PART OF THE REASON WAS A COMMERCE DEPARTMENT REPORT THAT JANUARY RETAIL SALES WERE NOT AS STRONG AS EXPECTED THE AUTO STOCKS THE RECENT STARS AMONG THE CYCLICALS FELL FOR A THIRD DAY GENERAL MOTORS DROPPED 1 1/8 TO 61 1/8 FORD MOTOR 1/2 TO 65 1/2 AND CHRYSLER 3/4 TO 59 PROCTER & GAMBLE ADDED 1 3/8 TO 58 3/4 DEAN WITTER REYNOLDS PUT A BUY RECOMMENDATION ON THE CONSUMER PRODUCTS MAKER'S SHARES THE BROKERAGE FIRM CITED P&G'S SUCCESS AT CUTTING OPERATING COSTS AND A POTENTIAL ACCELERATION IN EARNINGS TANDY CORP GAINED 1 3/4 TO 46 1/4 THIS NEWSPAPER REPORTED THAT THE FORT WORTH TEXAS CONSUMERELECTRONICS RETAILER EXPECTS TO POST FOURTHQUARTER EARNINGS FROM OPERATIONS OF ABOUT 102 A SHARE UP 21 FROM 84 CENTS A YEAR EARLIER THAT FIGURE EXCLUDES A GAIN FROM THE COMPANY'S PROGRAM OF DIVESTING NONCORE BUSINESSES CISCO SYSTEMS JUMPED 2 3/8 TO 74 3/8 THE MENLO PARK CALIF COMPUTER NETWORKING SYSTEM MANUFACTURER REPORTED BETTERTHANEXPECTED FISCAL SECONDQUARTER EARNINGS OF 29 CENTS A SHARE UP FROM 15 CENTS A YEAR EARLIER CLASS A SHARES OF NEW YORK TIMES CO ROSE 1 1/4 TO 27 1/2 THE PUBLISHING CONCERN'S FOURTHQUARTER REPORT SHOWED A LOSS OF 23 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF FIVE CENTS HOWEVER THE LATEST QUARTER'S RESULTS WERE HURT BY A 30 MILLION PRETAX CHARGE INFORMIX RALLIED 1 1/8 TO 21 AFTER FURMAN SELZ INITIATED COVERAGE OF THE MENLO PARK CALIF SOFTWARE DEVELOPER WITH A BUY RATING COLUMBIA GAS ROSE 1 7/8 TO 27 3/8 THE WILMINGTON DEL COMPANY REPORTED FOURTHQUARTER EARNINGS OF 137 A SHARE COMPARED WITH 173 A YEAR EARLIER BOTH PERIODS INCLUDED EXTRAORDINARY ITEMS GOLDMAN SACHS & CO ADDED THE STOCK TO ITS RECOMMENDED LIST FRIDAY PENN CENTRAL DROPPED 1 7/8 TO 26 7/8 THE CINCINNATI COMPANY SAID IT IS CONSIDERING THE PURCHASE OF SOME PERSONALINSURANCE LINES FROM A UNIT OF AMERICAN FINANCIAL CORP FOR 380 MILLION DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9402150093 940215 MARKETING BRIEF NATIONAL MEDIA CORP TELEVISED HOME SHOPPING PLANNED WITH JAPAN'S MITSUI NATIONAL MEDIA CORP SAID IT WILL LAUNCH A TELEVISED HOMESHOPPING BUSINESS IN JAPAN THROUGH AN AGREEMENT WITH THE JAPANESE TRADING COMPANY MITSUI & CO THE NATION'S LEADING INFOMERCIAL MARKETER BASED IN PHILADELPHIA SAID IT WILL PROVIDE INFOMERCIAL PROGRAMMING FOR A TRIAL THIS SPRING WHILE MITSUI WILL ARRANGE FOR BROADCASTING AND MARKETING THE PROJECT COULD BE EXPANDED TO OTHER ASIAN COUNTRIES AND AUSTRALIA NATIONAL MEDIA SAID THE ANNOUNCEMENT COMES AS VALUEVISION INTERNATIONAL INC A MINNEAPOLIS HOMESHOPPING NETWORK HAS LAUNCHED A 1050ASHARE TENDER OFFER FOR NATIONAL MEDIA SHARES NATIONAL MEDIA HASN'T MADE A RECOMMENDATION ON THE OFFER A NATIONAL MEDIA SPOKESMAN SAID THE MITSUI ANNOUNCEMENT IS UNRELATED TO THE TENDER OFFER BUT ADDED THAT ANYTHING YOU DO THAT MAKES YOUR BUSINESS STRONGER IS A POSITIVE THING 9402150092 940215 AT&T'S BID FOR COURT WAIVER TO ALLOW ACQUISITION OF MCCAW OPPOSED BY US BY JOE DAVIDSON AND JOHN J KELLER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT SAYS A FEDERAL COURT AT LEAST FOR NOW SHOULDN'T GRANT AMERICAN TELEPHONE & TELEGRAPH CO A LEGAL WAIVER THAT WOULD REMOVE AN OBSTACLE TO ITS PROPOSED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC WHILE THE ACTION PRESENTS A SETBACK TO THE TELEPHONE COMPANY'S EFFORT TO SECURE MCCAW IT DOESN'T NECESSARILY THWART IT AT&T PREDICTED THAT IT WILL BE ABLE TO PERSUADE THE COURT TO GRANT THE WAIVER DESPITE THE DEPARTMENT'S OPPPOSITION AND A DEPARTMENT SPOKESWOMAN SAID THE CLINTON ADMINISTRATION HASN'T YET CONCLUDED ITS REVIEW OF THE PROPOSED MERGER ITSELF THIS IS NOT OUR JUDGMENT REGARDING THE MERGER OF AT&T AND MCCAW SAID THE SPOKESWOMAN GINA TALAMONA THIS FILING DOES NOT SAY WHAT WE'RE DOING REGARDING THE MERGER WE'RE STILL CONFIDENT THE MERGER WILL GO OFF ON SCHEDULE AN AT&T SPOKESMAN SAID THE JUSTICE DEPARTMENT IS DENYING OUR REQUEST FOR AN EXPEDITED WAIVER WHICH MEANS THEY WANT MORE INFORMATION FROM US WE'LL PROVIDE WHATEVER INFORMATION THE COURT THINKS IS NECESSARY AT&T WANTS THE FEDERAL DISTRICT COURT IN WASHINGTON TO ISSUE A WAIVER FROM A CONSENT DECREE THAT PREVENTS IT FROM OWNING STOCK OR ASSETS OF BELL OPERATING COMPANIES BECAUSE MCCAW OWNS INTERESTS IN CELLULAR SYSTEMS THAT ARE CONTROLLED BY BELL COMPANIES AT&T WOULD NEED THE WAIVER BEFORE COMPLETING THE PLANNED ACQUISITION IN A MEMORANDUM FILED WITH THE COURT THE DEPARTMENT SAID AT&T PROVIDED NO FACTUAL SUPPORT FOR THE WAIVER AT&T DOES NOT EXPLAIN WHY THE COURT SHOULD CONCLUDE THAT AT&T'S OBTAINING SIGNIFICANT OR CONTROLLING INTEREST IN THESE CELLULAR SYSTEMS WHICH ARE OBLIGED TO PROVIDE EQUAL ACCESS TO AT&T'S INTEREXCHANGE COMPETITORS WILL NOT RESULT IN THE VERY EVILS THE DECREE WAS INTENDED TO PREVENT AT&T HAS SAID A WAIVER ISN'T NEEDED BUT THAT IT WOULDN'T BE DIFFICULT TO OBTAIN ONE IF NECESSARY THE COMPANY HAS ARGUED THAT THE CONSENT DECREE THAT BROKE UP THE COMPANY PROHIBITED IT FROM REACQUIRING BELL ASSETS AT&T OWNED AT THE TIME OF THE BREAKUP IT ASSERTS THAT THE CELLULAR FRANCHISES AREN'T IN THAT CATEGORY IF FEDERAL JUDGE HAROLD GREENE REFUSES TO GRANT A WAIVER AT&T COULD APPEAL OR RESTRUCTURE ITS DEAL WITH MCCAW SPECIFICALLY MCCAW WOULD HAVE TO SEVER ITS BUSINESS RELATIONSHIPS WITH THE BELL COMPANIES IN A NUMBER OF LUCRATIVE CELLULAR MARKETS INCLUDING LOS ANGELES AND HOUSTON WHERE MCCAW'S SUBSIDIARY LIN BROADCASTING INC OPERATES A CELLULARPHONE COMPANY WITH BELLSOUTH CORP IN THE SAN FRANCISCO BAY AREA TOO A JOINT VENTURE BETWEEN MCCAW AND PACIFIC TELESIS GROUP OFFERS CELLULAR SERVICE THIS COULD MAKE MCCAW A LESS DESIRABLE PROPERTY TO AT&T WHICH IS SEEKING TO SET UP AN UBIQUITOUS NATIONAL WIRELESS SERVICE THAT TAKES IN THE LARGEST US MARKETS 9402150091 940215 BORDEN AIDES LEAVING AS PART OF SHAKEUP DEPARTURES OF ITS COUNSEL CHIEF FINANCIAL OFFICER SEEN TIED TO NEW CEO BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S CHIEF FINANCIAL OFFICER AND ITS GENERAL COUNSEL ARE LEAVING THE BELEAGUERED FOOD AND CHEMICALS COMPANY AS PART OF A MANAGEMENT SHAKEUP BORDEN YESTERDAY SAID LAWRENCE O DOZA ITS 55YEAROLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR NEARLY NINE YEARS WILL TAKE EARLY RETIREMENT EFFECTIVE MARCH 1 EARLIER THIS MONTH WALTER W KOCHER BORDEN'S VICE PRESIDENT AND GENERAL COUNSEL RESIGNED AFTER 25 YEARS WITH THE COMPANY IN ADDITION PEOPLE CLOSE TO BORDEN SAY GEORGE J WAYDO ONETIME EXECUTIVE VICE PRESIDENT IN CHARGE OF THE STRUGGLING SNACKFOOD UNIT IS EXPECTED TO LEAVE BORDEN AFTER COMPLETING AN INTERNATIONAL ASSIGNMENT MOST RECENTLY MR WAYDO 50 SERVED AS A VICE PRESIDENT IN CHARGE OF SPECIAL PROJECTS MESSRS DOZA KOCHER AND WAYDO COULDN'T BE REACHED FOR COMMENT BORDEN ALSO DECLINED TO COMMENT ON THE CHANGES BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THE DEPARTURES OF MESSRS DOZA AND KOCHER AS WELL AS THE EXPECTED RESIGNATION OF MR WAYDO ARE PART OF A MANAGEMENT OVERHAUL BY ERVIN R SHAMES BORDEN'S RECENTLY APPOINTED CHIEF EXECUTIVE OFFICER IN THE PAST BORDEN'S MANAGEMENT HASN'T BEEN HIGHLY REGARDED PARTICULARLY IN THE FOOD INDUSTRY OBVIOUSLY THERE'S A CHANGING OF THE GUARD GOING ON SAYS JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC TO SOME EXTENT DOZA REPRESENTS A SCOREKEEPER OF THE PAST REGIME IN A STATEMENT MR SHAMES PRAISED MR DOZA FOR CREATING INNOVATIVE LOWCOST CORPORATE FINANCING VEHICLES BUT OTHERS HAVE MORE MIXED REACTIONS TO THE DECISIONS MADE DURING HIS TENURE GOLDMAN SACHS & CO'S NOMI GHEZ SAYS THAT IN 1991 BORDEN CREATED AN UNUSUAL PARTNERSHIP THAT BASICALLY ALLOWED IT TO REDUCE SOME OF ITS DEBT UNDER THE PARTNERSHIP BORDEN PUT IN AS ASSETS ITS BESTKNOWN TRADEMARKS INCLUDING CRACKER JACK AND CREMORA CREAMER IN EXCHANGE AN OUTSIDE INVESTOR CONTRIBUTED 500 MILLION IT WAS ALL GIMMICKS SAID MS GHEZ WHO ADDED THAT THE PARTNERSHIP ENABLED BORDEN TO BOOK A GAIN AND KEEP THE 500 MILLION OFF ITS DEBT TOTAL IT WAS A FINANCING VEHICLE THAT ALLOWED THEM TO UNDERESTIMATE DEBT LEVELS DISGUISED IN THE FORM OF SOMETHING ELSE PEOPLE FAMILIAR WITH BORDEN ADD THAT MR DOZA WAS PERHAPS TOO CLOSELY ASSOCIATED WITH THE COMPANY'S PAST PARTICULARLY ITS LAST TWO RESTRUCTURING EFFORTS WHICH DID LITTLE TO BOLSTER RESULTS BORDEN DECLINED TO COMMENT ON MS GHEZ'S STATEMENTS BORDEN SAID IT IS SEEKING AN OUTSIDE REPLACEMENT FOR MR DOZA GEORGE P MORRIS VICE PRESIDENT AND CHIEF STRATEGIC OFFICER HAS BEEN SELECTED TO ACT AS CHIEF FINANCIAL OFFICER IN THE INTERIM THE DEPARTURE OF MR KOCHER 59 IS SAID TO BE PRIMARILY BECAUSE OF COST CONSIDERATIONS MR KOCHER'S FUNCTIONS OVERLAPPED WITH THOSE OF CHIEF ADMINISTRATIVE OFFICER ALLAN L MILLER AND THE DECISION IS SAID TO HAVE COME DOWN TO SELECTING WHICH ONE SHOULD DEPART BUT THE EXPECTED DEPARTURE OF MR WAYDO WHO IS SAID TO HAVE ALREADY NEGOTIATED A SEVERANCE PACKAGE WITH BORDEN CONCLUDES A MORE CONTROVERSIAL CAREER FROM 1985 TO MARCH 1993 MR WAYDO SERVED AS EXECUTIVE VICE PRESIDENT OF BORDEN WITH RESPONSIBILITY FOR ITS SNACKS AND INTERNATIONAL CONSUMERPRODUCTS UNIT DURING MR WAYDO'S TENURE BORDEN MADE A NUMBER OF ACQUISITIONS THAT LATER TURNED SOUR MOST NOTABLY ITS 1987 PURCHASE OF LAURA SCUDDER POTATO CHIPS FOR NEARLY 100 MILLION MAJOR UNION PROBLEMS PROMPTED BORDEN TO CLOSE ALL OF LAURA SCUDDER'S CALIFORNIA PLANTS A YEAR AFTER THE PURCHASE BORDEN BEGAN USING A PLANT IN SALT LAKE CITY ONLY TO INCUR HIGH COSTS AND QUALITY PROBLEMS LAST MAY BORDEN SOLD LAURA SCUDDER FOR LESS THAN 20 MILLION NOW IT IS TRYING TO SELL ITS ENTIRE SNACKFOOD BUSINESS BORDEN REPORTED A FOURTHQUARTER LOSS OF 6359 MILLION OR 450 A SHARE INCLUDING A 632 MILLION RESTRUCTURING CHARGE IN THE YEAREARLIER QUARTER IT HAD A PROFIT OF 284 MILLION OR 20 CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BORDEN STOCK ROSE 125 CENTS TO 15 A SHARE YESTERDAY 9402150090 940215 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS FEB 1528 BENIN WAS A KINGDOM IN WEST AFRICA THAT FLOURISHED AND PRODUCED EXTRAORDINARY ART FROM THE 14TH TO THE 19TH CENTURIES THIS EXHIBITION OF MORE THAN 100 OBJECTS ON LOAN FROM VIENNA'S ETHNOGRAPHIC MUSEUM INCLUDES THE FAMOUS BRONZE SCULPTURES CEREMONIAL OBJECTS AND JEWELRY AND IVORY CARVINGS AMONG THEM FOUR ELABORATELY CARVED 7FOOT TUSKS AFTER LEAVING HERE IT TRAVELS TO CLEVELAND BALTIMORE AND SEATTLE MUSEUM OF FINE ARTS HOUSTON 1001 BISSONNET THROUGH APRIL 3 THIS RETROSPECTIVE FEATURES SOME 40 PAINTINGS DRAWINGS AND PRINTS FROM INTERNATIONAL PUBLIC AND PRIVATE COLLECTIONS FOCUSING ON THE ARTIST'S FASCINATION WITH AND TRANSFORMATION OF THE HUMAN FACE PARTICULARLY WEEPING WOMEN LATER VENUES ARE THE METROPOLITAN MUSEUM OF ART IN NEW YORK AND THE ART INSTITUTE OF CHICAGO LOS ANGELES COUNTY MUSEUM OF ART 5905 WILSHIRE BLVD THROUGH MAY 1 213 8576000 PAINTINGS SCULPTURES PHOTOGRAPHS AND MIXEDMEDIA INSTALLATIONS BY 20 FOREIGNBORN ASIANAMERICAN ARTISTS FOCUSING ON THE IDENTITY CRISIS FACED BY ASIANS LIVING IN THE WEST ONLY ONE ARTIST MASAMI TERAOKA WORKS IN A TRADITIONAL ASIAN ART MEDIUM WOODBLOCK PRINTING WHILE THE OTHERS USE CONTEMPORARY WESTERN MEDIA MORE THAN 100 LANDSCAPES MARINE VIEWS CITYSCAPES PORTRAITS AND GENRE SCENES PAINTED BY 17 ARTISTS BETWEEN 1780 AND 1850 CHRISTOFFER WILHELM ECKERSBERG AND HIS PUPIL CHRISTEN KOBKE ARE THE BESTKNOWN NAMES FROM THIS LITTLEKNOWN BUT HIGH MOMENT IN EUROPEAN ART METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT 82ND STREET THROUGH APRIL 24 212 8795500 HAROLYN BLACKWELL TAKES OVER THE ROLE OF MARIA FROM KATHLEEN BATTLE IN THE REVIVAL OF LA FILLE DU REGIMENT MS BATTLE WAS DISMISSED BY THE MET FOR UNPROFESSIONAL ACTIONS DURING REHEARSALS FRANK LOPARDO SINGS TONIO WITH ROSALIND ELIAS AS THE MARQUISE OF BERKENFIELD EDOARDO MULLER CONDUCTS BRUCE DONNELL DIRECTS METROPOLITAN OPERA BROADWAY AT 66TH STREET FEB 19 22 26 MARCH 1 6 10 212 3626000 TWO PRODUCTIONS CLOSE THE SEASON HERE ONE IS VERDI'S UN BALLO IN MASCHERA IN A PRODUCTION BY ZACK BROWN TENOR RICHARD MARGISON SINGS THE KING FATALLY ATTRACTED TO ANOTHER MAN'S WIFE WITH SOPRANO LISA GASTEEN AS THE LOVE INTEREST AMELIA THE OTHER IS MING CHO LEE'S PRODUCTION OF PUCCINI'S MADAMA BUTTERFLY WITH CHINESE SOPRANO YAN YAN WANG AS THE GLORIOUS GEISHA AND VLADIMIR GRISHKO AS HER LT PINKERTON THIS LARGE AND COMPREHENSIVE EXHIBIT ABOUT THE PREDATORS OF THE DEEP FEATURES INTERACTIVE DISPLAYS FOSSIL MODELS AND LIVE SPECIMENS AIMED TO DISPEL MISCONCEPTIONS ABOUT ONE OF NATURE'S LEAST ENDEARING BUT MOST ENDURING CREATURES AMERICAN MUSEUM OF NATURAL HISTORY CENTRAL PARK WEST AT 79TH STREET THROUGH MAY 1 212 7695800 AUTHENTIC DUTCH GARDENS WILL BE THE FOCUS OF THIS EVENT BILLED AS THE FIRST INTERNATIONAL FLOWER AND GARDEN SHOW IN THE US ABOUT 50 BONSAI TREES ARE BEING FLOWN IN FROM CHINA AS A SPECIAL EXHIBIT 9402150089 940215 CORPORATE FOCUS MICHELIN IN TIGHT INDUSTRY SPEEDS CHANGE AT UNIROYAL IN REVAMPING ACQUISITION TIRE MAKER SEEKS AND WINS UNION CONCESSIONS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL FORT WAYNE IND THE AGING UNIROYAL GOODRICH TIRE CO PLANT HERE HAS BEEN RUN BY UNION CONTRACT FOR MORE THAN 30 YEARS RULES HAVE DICTATED WHO MAY PICK UP WHICH WRENCH EMPLOYEES WHO COMPLETED WORK QUOTAS IN LESS THAN EIGHT HOURS HAVE BEEN ALLOWED TO CHAT OR READ THROUGH THE END OF SHIFTS BUT NOT FOR MUCH LONGER GROUPE MICHELIN BOUGHT UNIROYAL GOODRICH IN 1990 AND NOW THE BIG QUIRKY FRENCH COMPANY IS DEMANDING CHANGE FIERCE UNION RESISTANCE CRUMBLED UNDER MICHELIN THREATS TO CLOSE THE PLANT ON SATURDAY BY A VOTE OF 1007 TO 411 FORT WAYNE EMPLOYEES CHOSE TO ACCEPT MICHELIN'S DEMANDS DRASTICALLY ALTERING THE WAY PEOPLE MAKE TIRES HERE IT WAS THE LAST IN A SERIES OF VICTORIES FOR MICHELIN EMPLOYEES AT UNIROYAL GOODRICH'S OTHER PLANTS IN CANADA OKLAHOMA AND ALABAMA ALREADY HAD BOWED WE ARE CALLING INTO QUESTION EVERYTHING THE UNION HAS BUILT BRICK BY BRICK OVER THE PAST 30 YEARS SENIORITY THE WRITTEN CONTRACT THE GRIEVANCE PROCEDURE SAYS STEVEN NAIL A MICHELIN LABOR LAWYER MICHELIN WHICH BECAME THE WORLD'S BIGGEST TIRE MAKER WHEN IT ACQUIRED UNIROYAL GOODRICH PLANNED TO TAKE YEARS TRANSFORMING THE TIRED US COMPANY IN 1992 MICHELIN POSTED WORLDWIDE REVENUE OF 668 BILLION FRENCH FRANCS OR 1123 BILLION DOWN 12 FROM THE PREVIOUS YEAR BUT WITH STORMS LASHING THE INDUSTRY AROUND THE WORLD MICHELIN DECIDED A YEAR AGO THAT IT HAD TO SPEED UP THE CHANGES FEELINGS HAVE RUN HIGH IN FORT WAYNE PEOPLE ON OPPOSITE SIDES OF THE ISSUE BOTH UNION STALWARTS AND UNION DISSIDENTS WHO WANTED TO APPROVE MICHELIN'S DEMANDS ACCUSE ONE ANOTHER OF MAKING DEATH THREATS DISSIDENT PHILLIP GEUSZ SAYS FRIENDS WARNED HIM A FEW WEEKS AGO THAT A MAN WITH A DEER RIFLE WAS STALKING HIM ONE BIG GUY CAME UP AT WORK AND SAID HE'D PRAY FOR ME IN CHURCH MR GEUSZ RECALLS THE CLASH GROWS PARTLY FROM THE SINGLEMINDEDNESS OF A COMPANY THAT INVENTED THE RADIAL TIRE AND HAS BEEN RUN BY THE SAME FAMILY FOR MORE THAN 100 YEARS ITS CHAIRMAN IS FRANCOIS MICHELIN WHO IS IN HIS MID60S HIS SON EDOUARD IN HIS EARLY 30S IS BEING TRAINED TO SUCCEED HIM THE COMPANY'S EXECUTIVES FRAME THE ELDER MR MICHELIN'S SAYINGS AND HANG THEM ON THEIR WALLS THEY BELIEVE TRUE MICHELIN PEOPLE SHARE PROFOUND VALUES INVOLVING DUTIES TO ONE ANOTHER AND TO THE CUSTOMER THAT OUTSIDERS DON'T UNDERSTAND UNIROYAL GOODRICH SUFFERED BECAUSE IT DIDN'T HAVE SUCH VALUES THEY BELIEVE THEY ARE DETERMINED TO LEAD IT ON A CONVERSION THEY WANT TO RUN THIS PLACE THE WAY THEY RUN THEIR NONUNION MICHELINBRAND PLANTS IN SOUTH CAROLINA EXCLAIMS RAY WISEMAN WHO HEADS THE FORT WAYNE PLANT'S UNION LOCAL 715 OF THE UNITED RUBBER CORK LINOLEUM AND PLASTIC WORKERS OF AMERICA THAT SAYS MICHELIN IS PRECISELY RIGHT THE INDUSTRY IS IN CRISIS FUELED BY ITS OWN TECHNOLOGICAL ADVANCES A GOOD TIRE USED TO WEAR OUT AFTER 30000 MILES MICHELIN TODAY GUARANTEES ITS BEST FOR 80000 WITH SALES GROWTH WEAK ACROSS THE INDUSTRY SOME ANALYSTS FEAR FACTORY CLOSURES COULD BECOME A PLAGUE TIRE MAKERS IN THE US WERE SLOW TO ADAPT AND BRANDS INCLUDING FIRESTONE UNIROYAL AND GOODRICH WERE ACQUIRED BY FOREIGN COMPANIES MEANWHILE MICHELIN TRYING TO AVOID LAYOFFS SANK INTO WORLDWIDE LOSSES AND RESTRUCTURED REPEATEDLY WE FELT WE HAD TO MOVE FASTER TO TRANSFORM UNIROYAL GOODRICH SAYS CARLOS GHOSN HEAD OF MICHELIN'S US OPERATIONS ALL THE FOREIGN COMPANIES THAT MADE BIG US ACQUISITIONS ARE PUSHING NOW FOR NEW WORK RULES BRIDGESTONE/FIRESTONE INC FORMED AFTER JAPAN'S BRIDGESTONE CORP BOUGHT FIRESTONE TIRE & RUBBER CO IN 1988 PLANS TO DEMAND CONCESSIONS IN TALKS WITH ITS UNIONS THIS SPRING AILING GENERAL TIRE INC OWNED BY GERMANY'S CONTINENTAL AG RECENTLY FORCED WAGE AND WORKRULE CONCESSIONS AT A LOWPRODUCTIVITY PLANT IN KENTUCKY MICHELIN'S FIGHT AT UNIROYAL GOODRICH HAS BEEN PARTICULARLY HARSH A STRUGGLE OVER WHO MANAGES THE COMPANY SAYS MICHELIN'S MR NAIL MOST GALLING TO EMPLOYEES MICHELIN INSISTS THAT ALL TIRE BUILDERS REGARDLESS OF SENIORITY ROTATE SHIFTS SOMETIMES WORKING DAYS SOMETIMES NIGHTS SOMETIMES WEEKENDS MICHELIN BELIEVES THAT MINGLING JUNIOR AND SENIOR EMPLOYEES ON ALL SHIFTS LEADS TO MORE CONSISTENT QUALITY AND BETTER SAFETY UNION MEMBERS SAY THE CONSTANTLY CHANGING WORK HOURS CAUSE SLEEP PROBLEMS ALIENATION FROM FAMILIES AND EVEN ALCOHOL AND DRUG ABUSE MICHELIN WANTS TO INVEST HEAVILY IN NEW PRODUCTION SYSTEMS WHICH IT SAYS REQUIRES FLEXIBLE COOPERATIVE EMPLOYEES NO COMPANY IS GOING TO PUT IN EXPENSIVE NEW EQUIPMENT IF IT HAS AN OVERALL WORK FORCE WHOSE MIDDLE NAME IS IT'S NOT MY JOB' SAYS FORT WAYNE PLANT MANAGER CHARLES BIANCO FOR MICHELIN STALWARTS IT ALSO IS A MORAL QUESTION FACTORIES WORK BETTER THEY BELIEVE IF EMPLOYEES SHARE HARDSHIP BY ROTATING SHIFTS YOU NEVER GET TO SEE YOUR KIDS WHEN YOU'RE ON THE SECOND SHIFT SAYS WILMA WADDELL WHO BUILDS TIRES AND ROTATES SHIFTS AT A NONUNION MICHELINBRAND PLANT IN SOUTH CAROLINA BUT WHEN MY SON WAS KILLED IN AN ACCIDENT 14 YEARS AGO MICHELIN LET ME STAY OUT AS LONG AS I NEEDED MICHELIN TAKES CARE OF ITS OWN UNIROYAL GOODRICH'S UNION CALLS THAT PATERNALISM ANTIFRENCH SENTIMENT ABOUNDS THE RUBBERWORKERS' UNION HAS LAUNCHED AN AFLCIOBACKED CAMPAIGN TO BOYCOTT ALL MICHELINBRAND ALTHOUGH NOT UNIROYAL OR GOODRICH PRODUCTS SAYING MICHELIN IS INFLEXIBLE AND HAS A SUPERIORITY COMPLEX LYNN LOUDEN A 42YEAROLD FORT WAYNE TIRE BUILDER SAYS HE THINKS THAT MICHELIN NEXT WILL START DEMANDING CUTS IN WAGES AND HEALTH BENEFITS I REALLY FEEL THEY'RE GOING TO KEEP COMING AT US AGAIN AND AGAIN AND THEY'LL TRY TO BEAT US DOWN TO A 10 OR 11ANHOUR JOB FROM A CURRENT HOURLY WAGE OF NEARLY 18 HE SAYS MICHELIN OFFICIALS INSIST THEY HAVE NO DEVIOUS ANTIEMPLOYEE PLANS BUT THEY ACKNOWLEDGE THAT THEIR BATTLE TO CHANGE UNIROYAL GOODRICH HAS ONLY BEGUN AND WHILE THE UNION HAS BEEN BADLY SPLIT UNION LEADERS INSIST THEY WON'T LIE DOWN AND GIVE MICHELIN A FREE HAND MR WISEMAN THE FORT WAYNE LOCAL'S PRESIDENT WIELDS A CHARISMA HONED OVER 20 YEARS IN POWER FOR MONTHS HE REFUSED EVEN TO LET HIS MEMBERS VOTE ON PROPOSED WORKRULE CHANGES SATURDAY'S VOTE WAS FORCED BY NATIONAL UNION LEADERSHIP OVERRULING MR WISEMAN WHO WAS DEMANDING CONTINUED NEGOTIATIONS TO THE END ASKED WHETHER MICHELIN IS BEGINNING TO THINK THE ACQUISITION MAY HAVE BEEN AN EXPENSIVE ERROR MR GHOSN MICHELIN'S CHIEF OF US OPERATIONS SAYS THE JURY IS STILL OUT YOU CAN'T JUDGE THESE THINGS IN THREE OR FOUR YEARS' TIME HE SAYS IT TAKES LONGER THAN THAT YOU HAVE TO HAVE PATIENCE 9402150088 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY NUMBER OF PRIVATE VEHICLES ALLOWED IN THE COMMERCIAL DISTRICTS OF LILLEHAMMER 0 NUMBER OF MILES CONSIDERED BY NORWEGIAN OFFICIALS TO BE WALKING DISTANCE BETWEEN OLYMPIC VENUES 35 NUMBER OF TICKET AGENTS IN NORWAY 1 CARTAN TOURS 9402150087 940215 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP COMPANY DEVELOPS PROGRAM TO SELL COMPUTERS TO SCHOOLS COMPAQ COMPUTER CORP SAID IT IS DEVELOPING A PROGRAM TO MARKET ITS PERSONAL COMPUTERS TO EDUCATIONAL INSTITUTIONS INCLUDING ELEMENTARY SCHOOLS JUNIOR HIGHS HIGH SCHOOLS AND UNIVERSITIES THE MOVE IS ANOTHER IN COMPAQ'S CONTINUING EFFORTS TO EXPAND ITS SALES INTO NEW MARKETS THE HOUSTON COMPUTER MAKER HAS NEVER FOCUSED ON EDUCATION OR DEVELOPED AN ORGANIZATION TO HANDLE IT SAID A SPOKESMAN FOR COMPAQ THE TIME IS RIGHT FOR THE COMPAQ EXPANSION HE SAID BECAUSE THERE IS AN INCREASE IN THE LEVEL OF SOPHISTICATION OF COMPUTER USE AND A GROWING NEED FOR NETWORKING CAPABILITIES IN SCHOOLS COMPAQ WILL ESTABLISH COMPUTERDISTRIBUTION CHANNELS SOFTWARE PARTNERSHIPS AND MARKETING PROGRAMS TO SELL ITS PORTABLE DESKTOP AND SERVER OR NETWORKING PERSONAL COMPUTERS THE COMPANY SAID IT ALSO SET UP A NEW LEASING PROGRAM DESIGNED FOR SCHOOLS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPAQ SHARES CLOSED AT 91625 UP 875 CENTS 9402150086 940215 BORDEN TO BUILD ARKANSAS PLANT COLUMBUS OHIO A BORDEN INC SUBSIDIARY SAID IT PLANS TO BUILD A FORESTPRODUCTS RESINS PLANT IN HOPE ARK THE ADHESIVES AND RESINS NORTH AMERICA UNIT OF BORDEN'S PACKAGING AND INDUSTRIALPRODUCTS DIVISION SAID THE NEW FACILITY WILL SERVE THE GROWING FORESTPRODUCTS BUSINESS IN THE REGION BORDEN IS A LEADING SUPPLIER OF RESINS USED TO MAKE PLYWOOD AND PARTICLEBOARD 9402150085 940215 YOUR MONEY MATTERS GETTING STARTED FUND EXPENSES CAN MEAN GOOD OR POOR PERFORMANCE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEXT TIME YOU SEE A MUTUAL FUND WITH LOUSY PERFORMANCE DON'T BLAME THE PERSON WHO MANAGES IT CHECK OUT THE FUND'S ANNUAL EXPENSES INSTEAD STEADMAN AMERICAN INDUSTRY FUND FOR INSTANCE RANKED AS THE WORSTPERFORMING STOCK FUND FOR THE FIVE YEARS ENDED DECEMBER 1993 LOSING 25 OF SHAREHOLDERS' MONEY IN A PERIOD WHEN THE STANDARD & POOR'S 500STOCK INDEX SOARED 971 BUT THE FUND'S STOCKPICKING WAS ONLY PARTLY RESPONSIBLE FOR THE ROTTEN RESULTS IF YOU LOOK AT THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY BEFORE THE DEDUCTION OF ANNUAL MUTUALFUND EXPENSES THE FUND ACTUALLY GAINED 451 ACCORDING TO MORNINGSTAR INC A CHICAGO FUNDRESEARCH FIRM INSTEAD THE BIGGEST REASON FOR STEADMAN'S POOR PERFORMANCE HAS BEEN THE FUND'S OUTRAGEOUSLY HIGH ANNUAL EXPENSES THOSE EXPENSES HAVE CLAIMED MORE THAN 12 OF FUND ASSETS IN EACH OF THE PAST FOUR YEARS SAYS FUND RESEARCHER LIPPER ANALYTICAL SERVICES INVESTORS ARE OFTEN ONLY DIMLY AWARE OF THE IMPACT OF FUND EXPENSES THESE EXPENSES ARE GRADUALLY DEDUCTED FROM A FUND'S SHARE PRICE THROUGHOUT THE YEAR AS A RESULT MUTUALFUND PERFORMANCE NUMBERS INCLUDING THE ONES REPORTED IN THE BACK OF THIS NEWSPAPER AUTOMATICALLY REFLECT THE IMPACT OF ANNUAL FUND EXPENSES THE PERFORMANCE NUMBERS DON'T REFLECT LOADS OR SALES CHARGES HOWEVER ANNUAL FUND EXPENSES ARE DISCLOSED IN A FUND DOCUMENT KNOWN AS THE PROSPECTUS EXPRESSED AS A PERCENT OF FUND ASSETS ON AVERAGE DIVERSIFIED US STOCK FUNDS LEVY EXPENSES OF 123 OR 123 FOR EVERY 100 UNDER MANAGEMENT THAT MEANS THAT THE TYPICAL STOCK FUND HAS TO RETURN AT LEAST 123 EACH YEAR JUST FOR SHAREHOLDERS TO BREAK EVEN RETURN MEANS THE CHANGE IN THE FUND'S SHARE PRICE PLUS DIVIDENDS STEADMAN FUND GROUP WHICH MANAGES THE AMERICAN INDUSTRY FUND BLAMES ITS HIGH ANNUAL EXPENSES ON LEGAL BILLS INCURRED IN A LENGTHY BATTLE WITH THE SECURITIES AND EXCHANGE COMMISSION OVER ALLEGATIONS THAT THE WASHINGTON DC FUND GROUP MISPRICED ITS MUTUAL FUNDS STEADMAN WON THE CASE ON APPEAL IN 1992 IT SAYS EXPENSES HAVE STARTED TO COME DOWN BUT MAX KATCHER STEADMAN'S TREASURER CONCEDES THAT EVEN WITHOUT THE HIGH EXPENSES ITS FUND PERFORMANCE HAS LEFT SOMETHING TO BE DESIRED WE WON'T QUARREL WITH THAT MR KATCHER SAYS THOSE ARE THE FACTS HIGH EXPENSES USED TO BE A BIG PROBLEM AT AMERICAN HERITAGE FUND WHICH ONCE RANKED AS ONE OF THE FUND INDUSTRY'S MOST NOTORIOUS LOSERS BUT MARKET STRATEGIST HEIKO THIEME TOOK OVER THE FUND IN 1990 AND HAS SINCE TURNED IN STRONG GAINS DESPITE A ROUGH FIRST YEAR AND RECENT WEAK RESULTS THAT HAS BOLSTERED THE FUND'S FIVEYEAR RECORD SO THAT IT NOW RANKS AS THE 118TH BESTPERFORMING DIVERSIFIED US STOCK FUND OVER THE PAST FIVE YEARS WITH A TOTAL RETURN OF 1224 BUT THE FUND'S PERFORMANCE WOULD HAVE BEEN EVEN BETTER IF IT WASN'T FOR THE FUND'S HISTORICALLY HIGH ANNUAL EXPENSES WHILE THE FUND'S ANNUAL EXPENSES CURRENTLY ARE RUNNING AT LESS THAN 2 THEY AMOUNTED TO MORE THAN 13 OF ASSETS AT THE START OF THE FIVEYEAR PERIOD IF THOSE EXPENSES ARE BACKED OUT OF AMERICAN HERITAGE'S RESULTS MORNINGSTAR CALCULATES THAT THE FUND WOULD HAVE RETURNED 2127 DURING THE PAST FIVE YEARS MAKING IT THE INDUSTRY'S 19TH BEST PERFORMER IF A FUND HAS AN EXPENSE RATIO ABOVE 25 I WOULD VIEW THAT AS A WARNING SIGNAL SAYS MR THIEME BUT JUST FOCUSING ON EXPENSES IS A MISTAKE IT'S THE RETURN OF THE FUND THAT SHOULD BE DECISIVE WHEN SELECTING A MUTUAL FUND WHILE SOME FUNDS ARE IMPAIRED BY THEIR HIGH EXPENSES OTHERS COUNT THRIFTINESS AS THEIR CHIEF VIRTUE VANGUARD EXTENDED MARKET PORTFOLIO FOR INSTANCE IS AN INDEX FUND THAT SIMPLY BUYS AND HOLDS THE STOCKS IN THE WILSHIRE 4500 AN INDEX OF SMALLERCOMPANY STOCKS MORNINGSTAR FIGURES THAT THE VANGUARD FUND RANKS AS THE 262ND BEST FUND OVER THE PAST FIVE YEARS OUT OF A TOTAL OF 603 DIVERSIFIED US STOCK FUNDS THAT WERE AROUND FOR THE ENTIRE PERIOD BUT THE FUND'S BETTERTHANAVERAGE RESULT HAS COME ABOUT BECAUSE ITS EXPENSES CURRENTLY 019 ARE SO MUCH LOWER THAN THOSE OF ITS COMPETITORS IF YOU IGNORE EXPENSES THE FUND'S RANKING DROPS TO A BELOWAVERAGE 352ND FOR MANY MUTUAL FUNDS EXPENSES HAVE MEANT THE DIFFERENCE BETWEEN BEATING AND LAGGING BEHIND THE MARKET OVER THE PAST FIVE YEARS BEFORE EXPENSES FUNDS SOARED AN AVERAGE 1081 SINCE YEAREND 1988 COMPARED WITH 971 FOR THE S&P 500 BUT ONCE EXPENSES ARE SUBTRACTED THE FUNDS RETURNED A MARKETLAGGING 953 IT SHOWS HOW TOUGH IT IS TO BEAT THE MARKET SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER PUBLISHED BY MORNINGSTAR EXPENSES HAVE CLEARLY MADE A BIG DIFFERENCE EXPENSES CAN ALSO TAKE A BIG CHUNK OUT OF SHORTTERM PERFORMANCE MORNINGSTAR FIGURES THAT THE AVERAGE DIVERSIFIED US STOCK FUND RETURNED 126 LAST YEAR COMPARED WITH 101 FOR THE STANDARD & POOR'S 500STOCK INDEX BUT IF YOU BACK OUT EXPENSES FUND RETURNS JUMP TO ALMOST 14 ELIMINATING EXPENSES DOESN'T DO MUCH FOR VANGUARD GROUP THE COUNTRY'S SECONDLARGEST FUND COMPLEX WHICH PRIDES ITSELF ON ITS ROCKBOTTOM EXPENSES REMOVING EXPENSES BOLSTERS VANGUARD'S 1993 STOCKFUND PERFORMANCE ONLY SLIGHTLY TO ALMOST 13 FROM 126 BUT THE EFFECT ON THE STEADMAN FUNDS IS ENORMOUS THERE ARE FOUR STEADMAN FUNDS THREE OF WHICH ARE CLASSIFIED AS DIVERSIFIED US STOCK FUNDS BY MORNINGSTAR THESE THREE FUNDS RETURNED AN AVERAGE OF 76 LAST YEAR BUT IF YOU BACK OUT EXPENSES STEADMAN'S AVERAGE PERFORMANCE SOARS TO 174 ELIMINATING EXPENSES HAS AN ESPECIALLY SIGNIFICANT EFFECT ON THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY WHICH RETURNED 91 LAST YEAR MAKING IT THE 633RD BESTPERFORMING FUND OUT OF A TOTAL OF 953 THAT WERE AROUND FOR THE 12MONTH PERIOD IGNORE EXPENSES AND STEADMAN AMERICAN INDUSTRY BECOMES THE 88TH BESTPERFORMING FUND WITH A RETURN OF 239 9402150084 940215 LEISURE & ARTS BOOKSHELF TOWARD TRUTH AND GREATNESS BY ROGER KIMBALL IN ON LOOKING INTO THE ABYSS UNTIMELY THOUGHTS ON CULTURE AND SOCIETY KNOPF 224 PAGES 24 THE DISTINGUISHED HISTORIAN GERTRUDE HIMMELFARB HAS GIVEN US A KIND OF FEVER CHART OF CONTEMPORARY INTELLECTUAL FASHION THE WORD ABYSS SUGGESTS THAT THE DIAGNOSIS WILL NOT BE ENCOURAGING INDEED MANY OF THE PHENOMENA THAT MS HIMMELFARB DISCUSSES IN THESE SEVEN ESSAYS ALL OF WHICH WERE WRITTEN IN THE PAST THREE YEARS ARE THE OPPOSITE OF SALUBRIOUS THERE ARE FIRST OF ALL SUCH DIVERSE INTELLECTUAL MALADIES AS DECONSTRUCTION THE NEW HISTORICISM AND NIHILISTIC RELATIVISM ALL THE ANEMIC BUGBEARS THAT MAKE THE UNIVERSITY SUCH A CHEERFUL PLACE TODAY THEN THERE ARE VARIOUS HISTORICAL CATASTROPHES THE PERNICIOUS AMALGAMS OF NATIONALISM AND FUNDAMENTALISM FOR EXAMPLE WHICH ARE PROLIFERATING ANEW ABOVE ALL THERE IS THE HOLOCAUST THE SHADOW OF WHICH IN ONE WAY OR ANOTHER DARKENS ALL THESE ESSAYS A GRIM REMINDER THAT VERY BAD IDEAS CAN IN FACT HAVE VERY BAD CONSEQUENCES YET MS HIMMELFARB'S REPORTS FROM THE ABYSS ARE MORE THAN GLOOMY BULLETINS HER ESSAYS ARE ALSO UNTIMELY THAT IS TO SAY UNFASHIONABLE LIKE NIETZSCHE'S UNTIMELY MEDITATIONS THEY CHALLENGE PREVAILING INTELLECTUAL ORTHODOXY IF MANY PROMINENT CRITICS TODAY FLIRT WITH NIHILISM MS HIMMELFARB ANATOMIZES IT IN ORDER TO ATTACK IT IN HER INTRODUCTION SHE WRITES THAT HER BOOK IS DEDICATED TO THE PROPOSITION THAT THERE ARE SUCH THINGS AS TRUTH AND REALITY AND THAT THERE IS A CONNECTION BETWEEN THEM AS THERE IS ALSO A CONNECTION BETWEEN THE AESTHETIC SENSIBILITY AND THE MORAL IMAGINATION BETWEEN CULTURE AND SOCIETY THE AMAZING THING ABOUT THESE SENSIBLE STATEMENTS IS THAT YOU HAVE TO LOOK LONG AND HARD TO FIND PEOPLE TO DEFEND THEM NOT ONLY IN THE UNIVERSITY BUT ALSO IN CULTURAL LIFE GENERALLY WHEN IT COMES TO THE IDEA OF TRUTH THE PREVAILING WISDOM IS SUMMED UP BY THE INFLUENTIAL PHILOSOPHER RICHARD RORTY WHO SPEAKS WITH CONTEMPT OF METAPHYSICAL PRIGS IE THOSE WHO STILL BELIEVE THAT PHILOSOPHY HAS SOMETHING TO DO WITH SEEKING THE TRUTH PRESUMABLY MR RORTY'S STUDENTS ARE ALL THOROUGHLY DISABUSED OF ANY SUCH PRIGGISHNESS MS HIMMELFARB IS IMPATIENT WITH THIS BLASE RELATIVISM PERHAPS IT IS NOT GIVEN TO US TO POSSESS TRUTH WITH UTTER CLARITY BUT IT DOES NOT FOLLOW AS THE RORTARIANS INSIST THAT WE ARE COMPLETELY CUT OFF FROM THE TRUTH TRUE IT IS OFTEN DIFFICULT TO MAKE JUDGMENTS ABOUT HISTORICAL EVENTS OUR KNOWLEDGE IS FRAGMENTARY THE EVENTS ARE DAZZLINGLY COMPLEX BUT THE FASHIONABLE HISTORIANS WHO CLAIM THAT CONDEMNING HITLER OR STALIN IS AN ACT OF MORAL IMPERIALISM AND WHO PRETEND THAT THERE IS NO QUALITATIVE DIFFERENCE BETWEEN DEMOCRACY AND TOTALITARIANISM ARE MORE THAN OBTUSE THEY ARE CULPABLE ONE OF MS HIMMELFARB'S GOALS IN THESE ESSAYS IS TO REVITALIZE THE IDEA OF GREATNESS HISTORICAL GREATNESS LITERARY GREATNESS EVEN MORAL GREATNESS MS HIMMELFARB QUOTES MADAME DE SEVIGNE'S FAMOUS REMARK THAT NO MAN IS A HERO TO HIS VALET TODAY SHE SUGGESTS WE LIVE WITH A VALET'S VIEW OF THE WORLD EVERYTHING IS CUT DOWN TO SIZE EVEN BELOW SIZE IT CAN NO LONGER BE TAKEN FOR GRANTED THAT MILTON DESERVES TO BE MORE PRIVILEGED THAN MICKEY MOUSE THAT HIGH CULTURE IS HIGHER THAN POPULAR CULTURE AND THAT SOME EVENTS IN HISTORY ARE MORE MOMENTOUS THAN OTHERS ATTACKS ON GREATNESS SAY MORE ABOUT US THAN THE THINGS THEY WOULD DIMINISH AS HEGEL OBSERVED IF IT HAPPENS THAT NO MAN IS A HERO TO HIS VALET THIS IS NOT BECAUSE THE MAN IS NOT A HERO BUT BECAUSE THE VALET IS A VALET AS IS OFTEN THE CASE MANY OF OUR CHARACTERISTIC MALADIES ARE PARTLY A FUNCTION OF OUR VIRTUES THUS THE SUSPICION OF GREATNESS IS THE OTHER SIDE THE EXAGGERATION OR DISTORTION OF OUR LAUDABLE INSISTENCE ON EQUALITY AND DEMOCRACY MUST DEMOCRACY ENTAIL MEDIOCRITY OR TAKE THE IDEAL OF FREE SPEECH ONE OF THE BEDROCKS OF A DEMOCRATIC SOCIETY WE WANT FREE SPEECH DOES THAT MEAN WE MUST ALSO ACCEPT THE FREE CIRCULATION OF PORNOGRAPHY THESE ARE SOME OF THE CONUNDRUMS THAT LIBERALISM GENERATES FOR ITSELF IN OUR SOCIETY IT MAKES FOR SOME STRANGE SITUATIONS AS MS HIMMELFARB OBSERVES WE LIVE IN A SOCIETY WHERE THE IDEAL OF FREE SPEECH AND THE INSISTENCE ON THE SEPARATION OF CHURCH AND STATE LEAD TO THE CURIOUS RESULT THAT THE PHOTOGRAPH OF A CRUCIFIX IMMERSED IN URINE CAN BE EXHIBITED IN A PUBLIC SCHOOL BUT A CRUCIFIX NOT IMMERSED IN URINE CANNOT BE EXHIBITED IN HER INTRODUCTION MS HIMMELFARB NOTES THAT THE CRITICAL INSPIRATION FOR THESE ESSAYS WAS LIONEL TRILLING THE GREAT LITERARY CRITIC AND SOCIAL COMMENTATOR NOT ONLY HER TITLE BUT ALSO MANY PHRASES EXAMPLES AND ARGUMENTS ARE DRAWN FROM TRILLING'S WORK IT IS ABOVE ALL TRILLING'S MANNER A MANNER CHARGED WITH MORAL SERIOUSNESS BUT UNENCUMBERED BY PEDANTRY OR OBSCURANTISM THAT APPEALS TO HER UNLIKE MANY CRITICS THEN OR NOW TRILLING WAS ABLE TO RESIST THE INSIDIOUS IDEOLOGICAL AND POLITICAL FASHIONS OF HIS TIME WITHOUT THE COARSENING OF MIND THAT OFTEN COMES WITH DOING BATTLE AND ALSO WITHOUT THE TIMIDITY AND EQUIVOCATION THAT RETREATS FROM BATTLE IN AN EXCESS OF FASTIDIOUSNESS BOTH ARE NECESSARY INTELLECTUAL INTEGRITY AS WELL AS THE COURAGE TO DO BATTLE FOR IDEAS AND BOTH ARE RARE WE MUST BE GRATEFUL TO MS HIMMELFARB FOR REMINDING BOTH ARE STILL POSSIBLE 9402150083 940215 BUSINESS BRIEF IWERKS ENTERTAINMENT INC BLOCKBUSTER PACT SET TO BUILD MOTIONSIMULATION THEATERS IWERKS ENTERTAINMENT INC BURBANK CALIF SAID IT SIGNED AN AGREEMENT WITH BLOCKBUSTER ENTERTAINMENT CORP TO DESIGN AND BUILD MOTIONSIMULATION THEATERS FOR BLOCKBUSTER'S PLANNED CHAIN OF FAMILY ENTERTAINMENT COMPLEXES TERMS WEREN'T DISCLOSED IWERKS WHICH SPECIALIZES IN MAKING SPECIALTY THEATERS AND SIMULATOR RIDES FOR AMUSEMENT VENUES ALSO SAID IT WILL DEVELOP AND PRODUCE A LIBRARY OF FILMS EXCLUSIVELY FOR THE BLOCKBUSTER VENTURE ANNOUNCED LAST YEAR BLOCKBUSTER FORT LAUDERDALE FLA IS A VIDEORENTAL CHAIN THE SITES AND OPENING DATES FOR THE COMPANY'S FIRST ENTERTAINMENT COMPLEXES HAVEN'T BEEN DISCLOSED IWERKS'S STOCK ROSE 225 OR 99 TO CLOSE AT 25 ON THE NASDAQ STOCK MARKET BLOCKBUSTER'S STOCK FELL 875 CENTS TO CLOSE AT 24875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9402150082 940215 BUSINESS BRIEF CIGNA CORP INVESTMENT GAINS BOOSTED EARNINGS IN FOURTH QUARTER BUOYED BY INVESTMENT GAINS CIGNA CORP'S PROFIT SOARED IN THE FOURTH QUARTER THE PHILADELPHIABASED INSURANCE COMPANY EARNED 194 MILLION OR 270 A SHARE COMPARED WITH 50 MILLION OR 70 CENTS A SHARE IN THE YEARBEFORE PERIOD THE LATEST RESULTS INCLUDE CAPITAL GAINS OF 102 MILLION COMPARED WITH 19 MILLION IN THE PRIOR YEAR INDIVIDUAL BUSINESSES POSTED MIXED OPERATING RESULTS IN THE QUARTER THE COMPANY'S GROUP LIFE AND HEALTH INSURANCE BUSINESS EARNED 155 MILLION COMPARED WITH 115 MILLION A YEAR EARLIER PENSION PROFITS WERE FLAT AT 44 MILLION INDIVIDUAL LIFE INSURANCE AND ANNUITY PROFITS ROSE TO 33 MILLION FROM 24 MILLION THE PROPERTY AND CASUALTY SEGMENT HAD A 124 MILLION LOSS COMPARED WITH A 115 MILLION LOSS THE YEAR BEFORE CIGNA SAID IT EXPECTS TO LOSE 25 MILLION ON THE LOS ANGELES EARTHQUAKE IN THE CURRENT QUARTER 9402150081 940215 LAW LEGAL BEAT MINNESOTA LAW CHANGING TERMS OF INSURANCE FUND STRUCK DOWN BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IN A RARE USE OF THE CONSTITUTIONAL BAN ON STATE LAWS INTERFERING WITH CONTRACTS A FEDERAL COURT STRUCK DOWN A MINNESOTA LAW THAT RETROACTIVELY CHANGED THE TERMS OF A WORKERS' COMPENSATION INSURANCE FUND THE DECISION BY JUDGE JAMES ROSENBAUM IN MINNEAPOLIS IS SIGNIFICANT BECAUSE COURTS RARELY INVOKE THE SOCALLED CONTRACTS CLAUSE OF THE US CONSTITUTION TO INVALIDATE LEGISLATION IF ADOPTED ELSEWHERE THE JUDGE'S REASONING COULD BE USED TO CHALLENGE A WIDE RANGE OF REGULATIONS SUCH AS LAWS CHANGING THE TERMS OF STATESPONSORED RETIREMENT FUNDS OR ESTABLISHING NEW RIGHTS THAT ALTER EXISTING FRANCHISE AGREEMENTS THE MESSAGE OF THIS CASE IS THAT THE GOVERNMENT MUST UPHOLD ITS SIDE OF THE BARGAIN AND THAT YOU CAN'T CHANGE THE CONTRACT AFTER THE FACT FOR SOME POLITICALLY EXPEDIENT PURPOSE SAID JAMES SHAFLEY A LAWYER WITH THE MINNEAPOLIS LAW FIRM ROBINS KAPLAN MILLER & CIRESI WHICH REPRESENTED SOME OF THE PLAINTIFFS IN THE CASE THE CASE AROSE WHEN THE MINNESOTA LEGISLATURE PASSED A LAW CHANGING THE WAY EXCESS FUNDS IN THE WORKERS' COMPENSATION SYSTEM WERE TO BE DISTRIBUTED IN 1979 THE STATE BEGAN REQUIRING INSURANCE COMPANIES AND SELFINSURED EMPLOYERS TO CONTRIBUTE MONEY TO A POOL THAT PROVIDES REINSURANCE FOR WORKERS' COMPENSATION CLAIMS SUCH REINSURANCE IS DESIGNED TO PROVIDE EXTRA COVERAGE FOR UNUSUALLY LARGE CLAIMS UNDER THE ORIGINAL TERMS OF THE FUND WHICH THE JUDGE DEFINED AS A CONTRACT INSURERS AND OTHER COMPANIES THAT CONTRIBUTED MONEY WERE ENTITLED TO REFUNDS IF THE POOL ACCUMULATED A SURPLUS AS IT TURNED OUT THE FUND AMASSED A SIZABLE SURPLUS ABOUT 402 MILLION OVER A PERIOD OF ABOUT 13 YEARS BUT LAST YEAR HOPING TO REDUCE WORKERS' COMPENSATION COSTS OF EMPLOYERS THE MINNESOTA LEGISLATURE DECIDED TO DISTRIBUTE THE EXCESS MONEY TO EMPLOYERS RATHER THAN INSURANCE COMPANIES THAT DECISION JUDGE ROSENBAUM RULED WAS UNCONSTITUTIONAL BECAUSE IT INTERFERED WITH THE CONTRACTUAL RELATIONSHIP BETWEEN THE STATE AND THE INSURANCE COMPANIES THE MINNESOTA LEGISLATURE HAS ANNIHILATED THESE SETTLED CONTRACTUAL EXPECTATIONS THE JUDGE WROTE IT SIMPLY AWARDS THE WINDFALL TO DIFFERENT LEGISLATIVELY PREFERRED RECIPIENTS BY RELYING ON THE CONTRACTS CLAUSE THE OPINION RESURRECTS A THEORY THAT WAS A STAPLE OF FEDERAL CONSTITUTIONAL LITIGATION BACK IN THE 1920S AND '30S BUT IS NOW USED MUCH MORE SPARINGLY SAID JOHN JEFFRIES A PROFESSOR OF CONSTITUTIONAL LAW AT THE UNIVERSITY OF VIRGINIA JOCELYN OLSON A MINNESOTA ASSISTANT ATTORNEY GENERAL SAID STATE OFFICIALS HAVEN'T MADE A DECISION ABOUT WHETHER TO APPEAL AFTER THREE BRIEF DAYS OF DEFENSE TESTIMONY PROSECUTORS IN THE WORLD TRADE CENTER BOMBING TRIAL BEGAN PRESENTING CLOSING ARGUMENTS TO THE JURY ASSISTANT US ATTORNEY HENRY J DEPIPPO SAID EVIDENCE FROM THE 18WEEK TRIAL CLEARLY SHOWED THE FOUR DEFENDANTS HAD A SINGLE GOAL UNITING ALL OF THEIR ACTIONS TO BOMB SOMETHING IN THE UNITED STATES THE PLOT COMMENCED HE CONTENDED IN THE SUMMER OF 1992 WHEN DEFENDANT AHMAD AJAJ TOOK A COURSE IN WEAPONS AND EXPLOSIVES TRAINING IN THE MIDDLE EAST AND THEN RETURNED TO THE US BEARING A TERRORIST KIT INCLUDING ANTIJEWISH HATE LITERATURE AND BOMBMAKING NOTES IN HIS HANDWRITING THE DEFENDANTS ARE ALL CHARGED WITH CONSPIRACY IN THE FEB 26 1993 BLAST THAT KILLED SIX PEOPLE PROSECUTORS ARE EXPECTED TO CONTINUE THEIR SUMMATION TODAY THE CASE IS EXPECTED TO GO TO THE JURY AS EARLY AS THE END OF THIS WEEK MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402150080 940215 INTERNATIONAL CHAIRMAN ROUSSELET QUITS AT FRANCE'S CANAL PLUS SPECIAL TO THE WALL STREET JOURNAL PARIS ANDRE ROUSSELET CHAIRMAN OF FRANCE'S CANAL PLUS SA STEPPED DOWN YESTERDAY AS THE HEAD OF THE PAYTV OPERATOR IN A DISAGREEMENT OVER THE RESHUFFLING OF STAKES IN THE GROUP MR ROUSSELET WHO RESIGNED LATE LAST WEEK FROM THE BOARD OF HAVAS SA WILL RECOMMEND TO CANAL PLUS'S BOARD AT A MEETING TOMORROW THAT PIERRE LESCURE SUCCEED HIM AS CHAIRMAN CANAL PLUS SAID FOLLOWING MR ROUSSELET'S DEPARTURE FROM THE HAVAS BOARD THERE WAS STRONG SPECULATION THAT HE WOULD RESIGN AS CHAIRMAN OF CANAL PLUS MR ROUSSELET TOOK ISSUE WITH HAVAS'S DECISION TO COMBINE ITS 235 STAKE IN CANAL PLUS WITH THE 201 OWNED BY FRANCE'S CIE GENERALE DES EAUX MR ROUSSELET STORMED OUT OF A HAVAS BOARD MEETING LAST WEEK FOLLOWING THE DECISION WHICH HE APPARENTLY VIEWED AS A THREAT TO HIS AUTONOMY MR ROUSSELET IS A FOUNDER OF CANAL PLUS WHICH BEGAN OPERATIONS IN 1984 AFTER THE COMPANY GOT OFF TO A FITFUL START MR ROUSSELET TWO YEARS LATER NEGOTIATED A FAVORABLE BROADCASTING LICENSE FROM THE GOVERNMENT THAT GREATLY IMPROVED THE PAYTV COMPANY'S FORTUNES 9402150079 940215 LEISURE & ARTS IT'S THE YEAR OF THE DOG LITERALLY IN CHINESE CITIES BY JONATHAN KOLATCH CHENGDU CHINA WE FOUND A BEEGUHER THE VOICE OVER THE PHONE SANG IN CHINESE AT 745 IN THE MORNING HE HAS LONG EARS CAN YOU MEET ME UNDER THE BRIDGE AT 4 THIS AFTERNOON TO HAVE A LOOK THE STERILIZATION OF LIFE THAT ACCOMPANIED THE RISE TO POWER OF THE CHINESE COMMUNISTS IN 1949 BROUGHT WITH IT AN ABOLITION OF PROSTITUTION OPIUM USE AND THE UNEQUAL DISTRIBUTION OF POVERTY IT ALSO BROUGHT FOR HEALTH REASONS A PROHIBITION AGAINST DOGS AS PETS IN CHINA'S TEEMING CITIES FOR THE NEXT 40 YEARS THE ONLY CHINESE PERMITTED TO KEEP DOGS WERE PEASANTS SOME WERE RAISED AS PETS OTHERS TO SATISFY CHINA'S APPETITE FOR DOG MEAT WITHIN THE PAST TWO YEARS HOWEVER AS CHINA HAS LOOSENED ITS NOOSE AROUND MOST NONPOLITICAL AREAS OF LIFE PUPPIES HAVE BEGUN TO POUR INTO CHINA'S CITIES TO THE DELIGHT OF MILLIONS OF CHINESE CHILDREN JUST IN TIME FOR THE YEAR OF THE DOG THE LUNAR NEW YEAR THAT BEGAN LAST WEEK INTELLIGENCE ABOUT NOUVEAU RICHE CHINA'S LATEST CRAZE HAD REACHED ME IN NEW YORK IN A LETTER FROM SICHUAN PROVINCE EARLIER IN THE YEAR BUT IN STAID BEIJING I FOUND ON ARRIVAL IT WASN'T SO EASY TO MAKE A CANINE CONNECTION FUCHENGMEN STATION ON BEIJING'S LOOP SUBWAY LINE PROVED TO BE A STOP TOO SOON AT THE NEXT STOP A FRUIT PEDDLER ADVISED THAT THE GUAN YUAN AGRICULTURAL MARKET WHICH IN THE PAST HAD OFFERED PUPPY DOGS HAD BEEN TORN DOWN TO MAKE WAY FOR A NEW HIGHRISE THE PRESENT PUPPY LOCATION SHE COUNSELED WAS ADJACENT TO THE BIRD MARKET AT THE XI ZHI MEN BRIDGE COLORFUL BIRDS AND AQUARIUM FISH ARE CHINA'S TRADITIONAL HOUSE PETS AND AT THE XI ZHI MEN BIRD MARKET DOZENS OF VENDORS IN OUTDOOR STALLS WERE SELLING CANARIES AND PARAKEETS IN CAGES CAGES WITHOUT BIRDS BIRDS WITHOUT CAGES AND BIRDSEED BUT PUPPIES WERE NOWHERE TO BE SEEN WHAT KIND OF A DOG ARE YOU LOOKING FOR ASKED A MAN STRADDLING A BICYCLE WHO LATER GAVE HIS TRADE NAME AS MR PUPPY SALES XU AN AMERICAN DOG I ANSWERED PRESENTING MYSELF AS A BEIJINGBASED BUSINESSMAN WHO DEALT IN INDUSTRIAL PLASTICS HOW ABOUT A CHINESE DOG HE REPLIED AND HE ZIPPED OPEN HIS JACKET POCKET AND OUT POKED A PUGFACED POOCH JUST A FEW WEEKS OLD SOMETHING WITH LONGER EARS I SAID HOW ABOUT THIS A COLLEAGUE A FEW STEPS AWAY BY THE NAME OF GUO BROKE IN HE OPENED A CANVAS BAG AND OUT PEEKED A TINY TERRIER MR GUO STARTING TO GET SILLY SAID HE HAD A DOG WITH AN AMERICAN PASSPORT IF HE HAS A VALID PASSPORT I SAID I WILL PAY 500 SIGHT UNSEEN MR GUO WHO UNLIKE MR XU SELLS DOGS AS A SIDELINE ASKED WHAT KIND OF A DOG I WAS REALLY INTERESTED IN WITHOUT A CLUE AS TO WHAT DOGS OTHER THAN PEKINGESE ARE CALLED IN CHINESE AND NOT FINDING THE PICTURE I WAS LOOKING FOR IN 100 FAMOUS BREEDS THE STANDARD DOG REFERENCE IN BEIJING I STARTED TO DESCRIBE A DOG ABOUT A FOOT HIGH WITH FIVEINCH EARS AND BROWN BLACK AND WHITE COLORING I NEEDN'T HAVE WORKED SO HARD BEEGUHER IS A WORKING TERM IN CHINESE DOG CIRCLES THE DISCUSSION TURNED TO WHETHER I PREFERRED A CROPPED TAIL DOGS ESPECIALLY BEAGLES DON'T LIKE THEIR TAILS LOPPED I ARGUED THEY DON'T CARE MR GUO COUNTERED A TAIL IS LIKE A RUDDER ON A SHIP I RETORTED HOW IS A BEAGLE GOING TO CHASE RABBITS THROUGH THE WOODS WITHOUT HIS TAIL IF HE COULD LOCATE A BEAGLE MR GUO SAID HE WOULD GIVE ME A CALL THE PRICE WOULD BE 1000 YUAN 180 WITH OR WITHOUT THAT WAS 200 OR MORE BELOW THE BEAGLE MARKET IN CHINA I LATER LEARNED BEWARE OF BAIT AND SWITCH A BEIJING FRIEND WARNED BECAUSE CHINA AS YET HAS NO KENNEL CLUBS WHICH CERTIFY BREEDS 120 FAMOUS BREEDS ANOTHER STANDARD REFERENCE EXHORTS AUTHENTICATING PURE BREEDS CAN BE A PROBLEM MOST OF CHINA'S BIG CITIES NOW HAVE DOG MARKETS BUT FEW BEAT THE BUSTLE IN CHENGDU ON WEDNESDAYS THE GREEN SHEEP PALACE DOG MARKET DRAWS DOZENS OF MERCHANTS AND HUNDREDS OF BUYERS AND ON SUNDAYS 10000 CUSTOMERS LITTLE BOYS AND GIRLS IN TOW SLITHER SHOULDER TO SHOULDER THROUGH THE AISLES AND LANES THE MARKET BEGINS ON THE MAIN AVENUE WHERE MIXED BREEDS DISPLAYED IN SATCHELS WICKER BASKETS BICYCLE BASKETS AND ON RIBBON LEASHES ARE OFFERED AT PAVEMENT'S EDGE FOR 100 OR LESS MOST ARE JUST WEEKS OLD SOMETIMES A COMPLETE LITTER IS HUDDLED IN A BOX THE HALFMILELONG EARTHEN LANE THAT LEADS FROM THE AVENUE TO THE HEART OF THE MARKET IS WHERE DOG ACCESSORIES CAGES BASKETS FOR SLEEPING LEASHES AND DOG FOOD ARE SOLD WITH NO DOMESTIC PETFOOD INDUSTRY THE MOST AFFLUENT CHINESE FEED THEIR DOGS OFF OF THEIR PLATES FOR MANY DOGS IN CHINA THOUGH FOOD IS BUTCHER SHOP UNCONSUMABLES SOLD BY WEIGHT OUT OF BULK CONTAINERS THE MORE CAREFULLY BRED DOGS IN CHENGDU ARE SOLD BY PROFESSIONALS IN COVERED LICENSED STALLS HERE YOU CAN FIND BETTER MIXED BREEDS AT 500 SHIH TZUS FOR 1400 AND PEKINGESE FOR 5000 MANY MERCHANTS ARE QUITE SATISFIED TO SELL JUST ONE DOG A WEEK THE STALL AREA ALSO INCLUDES IMPORTED DOG PERFUMES AND OTHER GROOMING AIDES IMPORTED DOG FOOD AND TOYS FOR PUPS THE MOST EXPENSIVE DOGS IN CHINA SUCH AS ALLWHITE BREEDING FEMALE PEKINGESE ARE OFFERED PRIVATELY FOR 15000 AND MORE LOCAL GOVERNMENTS IN CHENGDU AND ELSEWHERE IN CHINA MAKE LITTLE EFFORT TO REGULATE THE HEALTH OF DOGS FOR SALE DOG LICENSES EXIST BUT FEW PURCHASE THEM CHENGDU MAINTAINS A PUBLICLY RUN PET CLINIC AT THE ENTRANCE TO THE GREEN SHEEP PALACE DOG MARKET WHERE FOR 15 A PUPPY CAN BE INNOCULATED BUT THERE IS NO MONITORING AND MOST OWNERS CHOOSE TO SAVE THE FEE WITH LITTLE HEALTH SUPERVISION CUDDLY BALLS OFTEN LATER EMERGE AS SICK PUPS IN FACT MANY NEW DOG OWNERS EAGER TO PLEASE AN ONLY CHILD HAVE NO IDEA AT ALL WHAT THEY ARE GETTING INTO A FEW MONTHS AFTER PURCHASE THEY UNLOAD THEIR FURRY BUNDLE AT A STEEP DISCOUNT MANY CHINESE HAVE AS LITTLE AS 100 OR 200 SQUARE FEET TO LIVE IN FURTHER WITH FEW OPEN OUTDOOR SPACES OR EVEN EMPTY SIDEWALKS CHINA'S DOGS ARE RARELY TAKEN OUT FOR WALKS INSTEAD THEY ARE TRAINED TO VISIT PANS THAT ARE LEFT FOR THEM IN THEIR CAGES OR IN A CORNER OF THE APARTMENT ACCURACY ISN'T ALWAYS THE BEST WITH THE POOL OF BREEDING STOCK STILL TINY MANY CHINESE PET DOGS COME FROM LONG DISTANCES A WOMAN IN HER 20S I MET STANDING IN FRONT OF ONE OF BEIJING'S MOST CHIC DEPARTMENT STORES CRADLING A PUPPY IN A BASKET HAD TRAVELED 33 HOURS ON THE TRAIN TO BEIJING FROM CANTON SHE HAD BROUGHT ALONG FOUR YOUNG PUPS WHICH SHE WAS SELLING FOR 100 EACH HER DOGS CAME FROM SHENZHEN ADJACENT TO HONG KONG OTHER DOGS COME OVER THE BORDER FROM RUSSIA STILL OTHERS ARE BRED LOCALLY OR IN OTHER PARTS OF THE COUNTRY IN TODAY'S MONEYORIENTED CHINA WHERE ALMOST EVERYONE IS ANGLING TO BECOME AN ENTREPRENEUR BREEDING PUPPIES AT HOME PROVIDES AN ADDITIONAL OPPORTUNITY BREEDING STOCK IS OFTEN WHAT CAN BE BORROWED I FOUND THAT OUT FIRSTHAND LAN LAN AN ALMOSTLHASA APSO ONEYEAROLD PURCHASED FOR 450 FROM BEAUTYSALON PROFITS WAS UNABLE TO MEET ME AT CHENGDU AIRPORT RONG RONG HIS MISTRESS WHO FIRST CLUED ME INTO CHINA'S PUPPYDOG RAGE FROM AFAR EXPLAINED AT THE GATE THAT LAN LAN WAS AWAY ON LOAN ON BREEDING BUSINESS COURTING TWO GIRLFRIENDS HE WOULD BE ALLOWED HOME WHEN POSTERITY WAS SERVED MR KOLATCH WRITES FREQUENTLY ABOUT CHINA 9402150078 940215 BUSINESS BRIEF LIZ CLAIBORNE INC FOURTHQUARTER NET PLUNGED BY 72 ON WEAK DEMAND HOBBLED BY WEAKER RETAIL DEMAND FOR ITS CORE WOMEN'S SPORTSWEAR LIZ CLAIBORNE INC AS EXPECTED POSTED A 72 DECLINE IN FOURTHQUARTER PROFIT AND A 42 DROP IN EARNINGS FOR ALL OF 1993 THE NEW YORK APPAREL MAKER SAID FOURTHQUARTER NET PLUNGED TO 149 MILLION OR 19 CENTS A SHARE FROM 519 MILLION OR 63 CENTS A SHARE A YEAR EARLIER SALES WERE FLAT AT 544 MILLION FOR 1993 CLAIBORNE'S PROFIT FELL TO 1269 MILLION OR 156 A SHARE DOWN FROM 2188 MILLION OR 261 A SHARE A YEAR EARLIER JEROME CHAZEN CHAIRMAN AND CHIEF EXECUTIVE SAID WITHOUT A DOUBT 1993 WAS THE TOUGHEST YEAR WE'VE EVER HAD HE ADDED THAT ON THE WHOLE WE VIEW 1994 AS A YEAR OF REBUILDING AND RESTRUCTURING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLAIBORNE SHARES CLOSED AT 2050 A SHARE UP 125 CENTS 9402150077 940215 NOT ALL RISKS PAY OFF FOR AMERICAN HERITAGE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL HEIKO THIEME LIKES TO PLAY WITH ROCKET FUEL TINY RISKY STOCKS THAT MIGHT PAY OFF BIG HE OFTEN INVESTS IN THEM THROUGH PRIVATE PLACEMENTS WHICH AREN'T AVAILABLE TO THE GENERAL PUBLIC FOR THE PAST THREE YEARS SUCH STOCKS HAVE HELPED PROPEL MR THIEME TO THE TOP OF THE MUTUALFUND ROSTERS BUT LATELY HIS HIGHFLYING PICKS ARE SPUTTERING SO FAR IN 1994 HIS AMERICAN HERITAGE FUND IS DOWN ABOUT 5 WHILE THE OVERALL MARKET IS UP ABOUT 1 HIS PORTFOLIO WAS TORPEDOED LAST WEEK BY ITS SECONDBIGGEST HOLDING SPECTRUM INFORMATION TECHNOLOGIES AMERICAN HERITAGE WAS THE LARGEST SINGLE HOLDER OF SPECTRUM WHICH LOST SOME 40 LAST WEEK AND IS DOWN NEARLY 70 SINCE JOHN SCULLEY FORMER HEAD OF APPLE COMPUTER TOOK THE HELM IN OCTOBER ON FEB 7 MR SCULLEY JUMPED SHIP CHARGING AMONG OTHER THINGS THAT SPECTRUM HAD DECEIVED HIM ABOUT ITS FINANCIAL SITUATION WHICH THE COMPANY THEN HAD TO RESTATE UNDAUNTED MR THIEME BOUGHT MORE SPECTRUM STOCK EVEN AS IT PLUNGED LOOK I'M AN AGGRESSIVE GROWTH FUND I'M HERE TO TAKE RISKS HE SAYS MR THIEME'S PREDILECTION FOR RISK IS EVIDENT IN HIS FUND'S OTHER HOLDINGS TOO HE KEEPS 10 TO 15 OF HIS PORTFOLIO IN PRIVATE PLACEMENTS OR RESTRICTED SECURITIES THAT DON'T TRADE PUBLICLY HE OWNS STOCKS IN COMPANIES SO SMALL YOU WON'T FIND THEM IN NEWSPAPERS' DAILY LISTINGS FOR THE NASDAQ STOCK MARKET AND HE USED 5 TO 10 OF THE FUND'S PORTFOLIO TO GAMBLE ON SHORTTERM PRICE BLIPS WHAT'S MORE HE SOMETIMES USES BORROWED MONEY TO TRY TO JUICE UP THE FUND'S RETURNS IN THE PAST THREE YEARS THE WAGERS HAVE PAID OFF AMERICAN HERITAGE IS THE TOP GENERAL STOCK FUND IN THE US FOR THE THREE YEARS THROUGH FEB 3 NEARLY TRIPLING ITS VALUE ACCORDING TO LIPPER ANALYTICAL SERVICES PREDICTABLY REDHOT RESULTS HAVE ATTRACTED A FLOOD OF MONEY THE FUND DWINDLED TO ABOUT 1 MILLION ON TERRIBLE PERFORMANCE WHEN MR THIEME A GERMANBORN MANAGER WHO FOR YEARS SERVED AS A CONSULTANT TO DEUTSCHE BANK TOOK IT OVER IN FEBRUARY 1990 SINCE THEN ITS ASSETS HAVE SWELLED TO ABOUT 150 MILLION STILL THERE ARE SOME DETRACTORS STAN TRILLING A PAINEWEBBER BROKER IN LOS ANGELES SAYS HE DOUBTS MANY INVESTORS REALIZE HOW MUCH OF MR THIEME'S SUCCESS COMES FROM GETTING SMALL COMPANIES TO SELL HIM CHEAP STOCK IN PRIVATEPLACEMENT DEALS I WENT IN TO PITCH HIM ON A PARTICULAR STOCK MR TRILLING RECALLS HE SAID HE WAS ONLY INTERESTED IF HE COULD GET IT AT A DISCOUNT FROM THE PREVAILING MARKET PRICE SUCH A DISCOUNT HELPED BOOST THE PERFORMANCE OF MR THIEME'S BIGGEST PICK SENETEK THE SMALL BRITISH BIOTECHNOLOGY COMPANY IS WORKING ON A DRUG TO TREAT MALE IMPOTENCE AND JOHNSON & JOHNSON PLANS TO MARKET THE DRUG IN THE US IF IT IS APPROVED HERE DURING THE PAST YEAR AND A HALF SENETEK SHARES SOARED TO ABOVE 5 FROM ABOUT 1 BUT MR THIEME'S PAPER GAINS ARE EVEN LARGER HE BOUGHT 19 MILLION SHARES IN A PRIVATEPLACEMENT DEAL IN SEPTEMBER 1992 AT 50 CENTS A SHARE ABOUT HALF SENETEK'S PUBLICLY TRADED PRICE AROUND THAT TIME MR TRILLING SUGGESTS THAT IT'S THOSE SORTS OF MANEUVERS MORE THAN STOCKPICKING SKILLS THAT HAVE VAULTED MR THIEME TO THE TOP OF THE PERFORMANCE RANKINGS HE HAS SEXY NUMBERS BUT HE'S NOT FOR ME SAYS MICHAEL STOLPER A SAN DIEGO INVESTMENT CONSULTANT THERE ARE POINTS OF AGGRESSIVENESS IN MR THIEME'S INVESTMENT STYLE THAT MAKE ME UNCOMFORTABLE THERE'S NOT AN OUNCE OF HUMILITY IN THE MAN FOR HIS PART MR THIEME AGREES THAT MANY OF HIS INVESTMENT POSITIONS ARE HIGH RISK BUT HE POINTS OUT THAT HE ALSO INVESTS IN BIG COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES WESTINGHOUSE ELECTRIC CITICORP AND PHILIP MORRIS OFTEN WHEN THEIR STOCKS HAVE BEEN BEATEN DOWN MR THIEME CONCURS THAT HE OFTEN BUYS STOCK FROM SMALL PUBLIC COMPANIES AT A DISCOUNT FROM PUBLICMARKET PRICES AMERICAN HERITAGE IS RESTRICTED FROM SELLING THIS STOCK FOR A PERIOD OF TIME WHICH CAN RANGE FROM AS LITTLE AS A MONTH TO AS MUCH AS TWO YEARS THE DISCOUNTS ARE OFTEN 10 TO 40 HE SAYS BUT CAN RUN AS HIGH AS 50 TO 70 ON THE MOST SPECULATIVE STOCKS HOWEVER MR THIEME POOHPOOHS THE IDEA THAT DISCOUNTS DRIVE HIS GOOD THREEYEAR RECORD THEY MAKE ONLY A NEGLIGIBLE CONTRIBUTION TO OVERALL RESULTS HE SAYS YET IN THE SAME BREATH HE BOASTS THAT HE FIGHTS TO REAP AS MUCH AS WE CAN CONCEIVABLY JUSTIFY IN DISCOUNTS SEVERAL THINGS MAY IMPEL COMPANIES TO OFFER DISCOUNTS ON THEIR STOCK TO BIG BUYERS THEY MAY NEED MONEY QUICKLY OR MAY NOT WANT TO PUT UP WITH THE EXPENSE OR THE SCRUTINY OF A PUBLIC STOCK OFFERING SOME MONEY MANAGERS CONSIDER SUCH SPECIAL TREATMENT UNFAIR IF A STOCK IS TRADING AT 20 WHY SHOULD SOMEBODY HAVE THE RIGHT TO BUY IT AT 18 DEMANDS BRETT BRUBAKER PRESIDENT OF ABRAHAM & SONS IN CHICAGO I'M TICKED THAT'S NOT FAIR ASKED WHY COMPANIES GIVE HIM DISCOUNTS MR THIEME SAYS THAT HAVING AMERICAN HERITAGE AS A HOLDER CONFERS SOME PRESTIGE AND LEGITIMACY ON A COMPANY IF WE'RE IN AND WE'RE THE NO 1 FUND FOR THE PAST THREE YEARS WALL STREET TRADES ON PERCEPTION HE SAYS UNTIL LATELY HAVING MR THIEME AS A SHAREHOLDER PROVIDED ANOTHER BENEFIT HE OFTEN TOUTED HIS FAVORITE STOCKS ON BUSINESS TELEVISION NETWORK CNBC WHERE HE WAS A REGULAR GUEST BUT MR THIEME RECENTLY WAS TOLD HIS SERVICES ON CNBC WOULDN'T BE REQUIRED AS OFTEN AS BEFORE PETER STURTEVANT VICE PRESIDENT OF DAYTIME NEWS AT CNBC SAYS THE CABLE NETWORK HAS NOTHING AGAINST MR THIEME BUT WANTS TO GET FRESH FACES INTO ITS MIX EVERY ONCE IN A WHILE WE SHAKE UP THE LIST OF NAMES HE SAYS BUT MR THIEME ISN'T HAPPY ABOUT THE WAY CNBC GAVE HIM THE COLD SHOULDER THEY SAID DON'T BOTHER TO COME UNLESS WE CALL HE FUMES I'M NOT A LITTLE WEASEL IN ANY CASE MR THIEME IS AT NO LOSS FOR NEW PLANS HE INTENDS TO START A MORE CONSERVATIVE MUTUAL FUND SOON AND ALSO TO LAUNCH A HEDGE FUND A PRIVATE INVESTMENT PARTNERSHIP FOR WEALTHY INVESTORS HE'S ALSO TOYING WITH THE IDEA OF TRYING TO CONVERT AMERICAN HERITAGE FROM AN OPENEND MUTUAL FUND TO A CLOSEDEND FUND UNLIKE OPENEND FUNDS CLOSEDEND FUNDS ISSUE A FIXED NUMBER OF SHARES WHICH TRADE PUBLICLY LIKE NORMAL STOCKS THAT SETUP RELIEVES CLOSEDEND FUND MANAGERS OF HAVING TO COPE WITH A FLOOD OF REDEMPTIONS IN TIMES OF LOSS OR A CASCADE OF NEW MONEY TO INVEST WHEN PERFORMANCE IS GOOD IF AMERICAN HERITAGE WERE CLOSEDEND MR THIEME SAYS IT COULD EASE THE PRESSURE ON HIM TO PRODUCE SHORTTERM RESULTS WALL STREET THINKS LONGTERM IS NEXT MONDAY HE SAYS 9402150076 940215 WHO'S NEWS SOTHEBY'S NAMES RUPRECHT TO DIRECT DAILY OPERATIONS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOTHEBY'S HOLDINGS INC NAMED ITS CHIEF OF MARKETING WILLIAM RUPRECHT TO THE NEW POSITION OF MANAGING DIRECTOR OF NORTH AND SOUTH AMERICAN OPERATIONS MR RUPRECHT 38 YEARS OLD WILL OVERSEE MOST DAYTODAY OPERATIONS OF THE NEW YORKBASED AUCTION HOUSE FREEING DIANA D BROOKS NOW WORLDWIDE HEAD OF AUCTION OPERATIONS FROM MANY OF HER ADMINISTRATIVE DUTIES IN THE US SHE TAKES OVER AS SOTHEBY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ON APRIL 1 AS PREVIOUSLY ANNOUNCED MR RUPRECHT'S PROMOTION WAS ONE OF A SERIES THAT APPEARS TO TIP THE FIRM'S HAND TO WHAT SOTHEBY'S THINKS MAY BE THE ART MARKET'S GROWTH AREAS OF THE 1990S FIVE EXECUTIVE VICE PRESIDENTS WERE NAMED DAVID NASH 51 THE WORLDWIDE HEAD OF PAINTINGS AND SCULPTURE ROBERT WOOLLEY 50 WHOSE THEATRICAL AUCTIONEERING STYLE AT BENEFIT AUCTIONS HAS GARNERED THE COMPANY A GREAT DEAL OF PUBLICITY IN THE FASHION AND SOCIETY PRESS WARREN WEITMAN 48 HEAD OF BUSINESS DEVELOPMENT WHICH OVERSEES SOTHEBY'S TRUSTS AND ESTATES DIVISION AND APPRAISAL DIVISIONS AND JOHN BLOCK 45 HEAD OF SOTHEBY'S JEWELRY DEPARTMENT THE COMPANY'S FASTESTGROWING AND MOST LUCRATIVE AREA MR RUPRECHT THE NEW MANAGING DIRECTOR ALSO ADDED THE TITLE OF EXECUTIVE VICE PRESIDENT DURING THE ARTMARKET BOOM OF THE LATE 1980S AND SUBSEQUENT RECESSION MR RUPRECHT OVERSAW THE COMPANY'S MARKETING EFFORTS HE PREVIOUSLY HEADED THE ORIENTALRUG AND ANTIQUECAR SALES DEPARTMENTS AND IS PERHAPS BEST KNOWN AS THE FIRM'S DEEPVOICED AUCTIONEER OF WATCHES 19THCENTURY PAINTINGS RUGS AND DECORATIVE ARTS AFTER YEARS OF A WEAK ART MARKET THE CUP IS MORE THAN HALF FULL SAID MR RUPRECHT THERE IS AN ENERGY AND ENTHUSIASM AND OPTIMISM AT SOTHEBY'S NOW HE SAYS MRS BROOKS 43 WHO IS SUCCEEDING PRESIDENT MICHAEL AINSLIE 51 SPENDS MUCH OF HER TIME TRAVELING TO THE FIRM'S SALESROOMS AROUND THE WORLD AND SAID MR RUPRECHT'S PROMOTION WILL FREE HER FROM ADMINISTRATIVE MATTERS HOWEVER SEVERAL DEPARTMENT HEADS WILL REPORT TO MR RUPRECHT ON ADMINISTRATIVE CONCERNS SUCH AS STAFFING BUT WILL REPORT TO MRS BROOKS ON STRATEGY AND AUCTION ISSUES 9402150075 940215 TECHNOLOGY BRIEF ST JUDE MEDICAL INC ADVANCED TISSUE INVESTMENT SET FOR HEARTVALVE PROJECT ST JUDE MEDICAL INC AGREED TO INVEST 5 MILLION IN ADVANCED TISSUE SCIENCES INC TO WORK WITH THE LA JOLLA CALIF COMPANY ON POSSIBLE DEVELOPMENT OF HEART VALVES FROM HUMAN TISSUE BASED IN ST PAUL MINN ST JUDE THE NATION'S BIGGEST MAKER OF MECHANICAL HEART VALVES WILL PAY 5 MILLION FOR 563000 SHARES OR 187 OF ADVANCED TISSUE'S COMMON STOCK THE TWO COMPANIES WILL ALSO STUDY THE FEASIBILITY OF HEARTVALVE REPLACEMENTS MADE FROM HUMAN TISSUE ADVANCED TISSUE SCIENCES REPLICATES HUMAN TISSUE BY PUTTING SAMPLES OF TISSUE IN A SIMULATED CELLGROWTH ENVIRONMENT WE FOOL THE CELLS INTO THINKING THEY'RE IN THE BODY SAID GAIL K NAUGHTON EXECUTIVE VICE PRESIDENT IN THE AGREEMENT WITH ST JUDE ADVANCED TISSUE HOPES TO CREATE A FULLY HUMAN HEART VALVE USING LIVING CELLS FROM THE LINING OF BLOOD VESSELS CURRENTLY MECHANICAL HEART VALVES REQUIRE PATIENTS TO TAKE ANTICOAGULANTS FOR LIFE A FULLY HUMAN TISSUE HEART VALVE WOULD NOT REQUIRE ANTICOAGULANTS 9402150074 940215 INTERNATIONAL PAPANDREOU MUST BEAT THE ODDS AGAIN GREECE'S AGING LEADER CONFRONTS AILING ECONOMY BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS ANDREAS PAPANDREOU GREECE'S SEPTUAGENARIAN PRIME MINISTER HAS A KNACK FOR BEATING THE ODDS HE TWICE WAS IMPRISONED AND EXILED BEFORE SERVING TWO TERMS AS GREECE'S ONLY SOCIALIST PRIME MINISTER SCANDAL RECORD INFLATION AND A MASSIVE BUDGET DEFICIT LED TO A HUMILIATING DEFEAT IN 1989 STILL MR PAPANDREOU BEAT CHARGES THAT HE ACCEPTED BRIBES HE SURVIVED TRIPLE BYPASS HEART SURGERY AND MARRIED A WOMAN HALF HIS AGE LAST FALL HE STAGED A STUNNING POLITICAL COMEBACK THE QUESTION NOW IS CAN MR PAPANDREOU MANAGE HIS NATION'S TROUBLES AS HANDILY AS HE TRIUMPHED OVER HIS OWN OR MORE BLUNTLY CAN ONE OF EUROPE'S FRAILEST LEADERS NURSE ONE OF THE EUROPEAN UNION'S WEAKEST COUNTRIES BACK TO HEALTH NOT ONLY EUROPEAN AND AMERICAN LEADERS BUT INVESTORS AROUND THE WORLD ARE WATCHING AND WONDERING IF MR PAPANDREOU AND HIS PANHELLENIC SOCIALIST MOVEMENT OR PASOK UNDO THE PROBUSINESS PROPRIVATIZATION PROGRAMS OF THE CONSERVATIVE GOVERNMENT OUSTED LAST OCTOBER IT WILL THWART URGENT ECONOMIC REFORMS BUT PROGRESS REQUIRES SELLING INEFFICIENT STATEOWNED COMPANIES FROM SHIPYARDS AND CASINOS TO THE NATIONAL AIRLINE AND TELEPHONE COMPANY AND RIDDING THEM OF THOUSANDS OF WORKERS MANY OF THEM PASOK SUPPORTERS WE HAVE A REALITY WHERE THERE IS VERY LITTLE ROOM FOR ERROR ACKNOWLEDGES THEODOROS PANGALOS GREECE'S MINISTER FOR EUROPEAN AFFAIRS A KEY PAPANDREOU ADVISER MOREOVER GREECE'S CONSTANT BICKERING WITH NEIGHBORING MACEDONIA ALBANIA AND ITS LONGTIME ENEMY TURKEY THREATENS TO WIDEN THE TURMOIL IN THE BALKAN REGION MR PAPANDREOU'S BIGGEST CHALLENGE ISN'T ABROAD HOWEVER BUT AT HOME MR PAPANDREOU NOW 75 IS FAR FROM VIGOROUS HE IS NOTHING LIKE THE FISTPOUNDING SPEAKER WHO IN THE EARLY 1980S THREATENED TO KICK OUT US MILITARY BASES AND TO WITHDRAW GREECE FROM NATO THE MAN WHO ONCE GAVE TWOHOUR EXTEMPORANEOUS SPEECHES SOUNDS NOW AS THOUGH HE IS ABOUT TO RUN OUT OF BREATH ANY MINUTE HE MADE ONLY THREE SPEECHES DURING THE 25DAY CAMPAIGN LAST FALL AND SINCE HE TOOK OFFICE HE HAS JOINED DEBATES IN PARLIAMENT ONLY FOUR TIMES THE LAST TIME AFTER RETURNING FROM A NATO SUMMIT IN BRUSSELS AIDES HELD HIS ARMS AS IF TO SUPPORT HIM WHEN HE ENTERED THE CHAMBER HALF THE MINISTERS IN MR PAPANDREOU'S GOVERNMENT ARE OVER 60 YEARS OLD MOST SERVED IN HIS PREVIOUS ADMINISTRATIONS TWO HAVE CANCER BUT NOT ALL HIS STAFF IS OLD IN ONE OF HIS FIRST OFFICIAL ACTS MR PAPANDREOU NAMED AS HIS APPOINTMENTS SECRETARY HIS SECOND WIFE DIMITRA 39 A FORMER OLYMPIC AIRLINE FLIGHT ATTENDANT WITH WHOM HE CONDUCTED A PUBLIC AFFAIR BEFORE DIVORCING HIS WIFE OF 36 YEARS AND REMARRYING IN 1989 THE NEW MRS PAPANDREOU HAS CAUSED A STIR IN GREECE'S MALEDOMINATED SOCIETY WITH A STAFF OF 200 SHE STAYS CLEAR OF POLICY MAKING AIDES INSIST BUT SHE OVERSEES HER HUSBAND'S SCHEDULE AND CAN VETO APPOINTMENTS TO SEE HIM THE PRIME MINISTER AND HIS WIFE DECLINED TO BE INTERVIEWED MR PAPANDREOU'S SUPPORTERS SAY HE IS HEALTHY THEY POINT TO HIS SCHEDULE AT THE TWODAY BRUSSELS SUMMIT WHERE HE GAVE A KEYNOTE SPEECH HOSTED A WORKING DINNER FOR FOREIGN LEADERS AND MET TWICE WITH PRESIDENT CLINTON I CALL HIM AT 1 AM AND HE'S STILL AWAKE SAYS THE PRIME MINISTER'S SON GEORGE PAPANDREOU A DEPUTY FOREIGN MINISTER AND EVEN HIS ADVERSARIES DON'T COUNT HIM OUT HE IS A VERY CLEVER SICK MAN SAYS NIKOLAOS KATSAROS OPPOSITION LEADER IN PARLIAMENT MR PAPANDREOU'S AIDES INSIST THAT PASOK IS FAR MORE MODERATE NOW CHASTENED BY THE ECONOMIC PROBLEMS THAT OCCURRED DURING ITS REIGN IN THE 1980S THE MAN WHO A DECADE AGO ROAMED GREECE'S COUNTRYSIDE IN SHIRTSLEEVES ADVOCATING PROFIT CEILINGS SOUNDS DOWNRIGHT REAGANITE AT TIMES HE TOLD THE GREEK PARLIAMENT AFTER HIS ELECTION ALL THE COMPLEX AND TIMECONSUMING ADMINISTRATIVE PROCEDURES THAT MAKE LIFE DIFFICULT FOR THE CITIZEN MUST BE SIMPLIFIED THE WORDS COMPETITIVENESS AND PRODUCTIVITY PEPPER HIS PUBLIC STATEMENTS BEING A SOCIALIST DOESN'T MEAN NOT FACING REALITY SAYS MR PANGALOS THE GOVERNMENT MINISTER ADDS CULTURE MINISTER MELINA MERCOURI THIS IS SOCIALISM WITH A NEW FACE AND INDEED GREECE IS AN INTRIGUING MARKET FOR FOREIGN INVESTORS THOUGH THE POOREST OF THE 12 EU COUNTRIES BY SOME MEASURES ITS OFFICIAL AVERAGE INCOME IS ABOUT 7200 A YEAR IT HAS A LARGE UNDERGROUND ECONOMY ESTIMATED AT 40 OF GROSS DOMESTIC PRODUCT SOME 70 OF THE POPULATION OWN THEIR OWN HOME YOU HAVE A WELLEDUCATED POPULATION AND A STRONG PRIVATE SECTOR THE PROBLEM IS THE MAN ON THE STREET SHOWS MORE LEADERSHIP THAN THE MEN IN THE MINISTRIES SAYS PROF THANOS VEREMIS A GREEK WHO TEACHES EUROPEAN AFFAIRS AT OXFORD UNIVERSITY MANY CRITICS SAY MR PAPANDREOU'S ACTIONS HAVEN'T CAUGHT UP WITH HIS FREEMARKET RHETORIC AS A RESULT THE INITIAL ECONOMIC PROGRESS MADE BY THE PREVIOUS GOVERNMENT IS ENDANGERED THEY SAY THE STOCK MARKET TOOK OFF IN 1990 WHERE THERE ONCE WERE THREE WOODEN TRADING RIMS ON THE ATHENS STOCK EXCHANGE FLOOR MORE THAN 114 COMPUTERIZED TERMINALS NOW HANDLE THE TRADING VOLUME BUT GOVERNMENT HAS PUT UNDER REVIEW PLANS TO SELL OFF MORE THAN 3 BILLION IN STATEOWNED ENTERPRISES TO REDUCE THE DEFICIT AND TO BUILD A STATEOFTHEART INTERNATIONAL AIRPORT OUTSIDE ATHENS WITH 29 BILLION IN PRIVATE AND EU FUNDS ALREADY INVESTORS ARE NERVOUS MOST WORRISOME TO POTENTIAL INVESTORS IS THE ABOUTFACE ON THE PRIVATIZATION OF HELLENIC TELECOMMUNICATIONS ORGANIZATION THE NATIONAL PHONE COMPANY KNOWN AS OTE NOT ONLY IS IT THE BIGGEST STATEOWNED COMPANY BUT IT IS A SYMBOL OF THE OVERALL PRIVATIZATION PROGRAM THE PREVIOUS GOVERNMENT PLANNED TO SELL A 35 STAKE IN THE OTE TO A STRATEGIC INVESTOR THE MOST LIKELY CANDIDATE WAS A FOREIGN TELECOMMUNICATIONS COMPANY THAT WOULD HAVE HELPED TO OVERHAUL AND MANAGE THE SYSTEM NOW PASOK PLANS TO SELL 13 AND PERHAPS EVENTUALLY UP TO 30 OF THE SHARES IN A PUBLIC OFFERING AS FOR PLANS TO PRIVATIZE GREECE'S POWER PLANTS IT IS NOT IN OUR POLICY NATIONAL ECONOMY MINISTER YIANNIS PAPANTONIOU SAYS FLATLY SMALL BUSINESSES ARE WAITING TO SEE WHAT MR PAPANDREOU DECIDES IN THE END HARRY G DAVID WHO OWNS PITTA PAN A FASTFOOD SOUVLAKI RESTAURANT WANTS TO EXPAND HIS BUSINESS INTO A NATIONAL CHAIN BUT HE FEARS PASOK MIGHT INCREASE TAXES OR REINTRODUCE PRICE CONTROLS EACH TIME A NEW GOVERNMENT COMES IN IT DISCREDITS EVERYTHING THE PREVIOUS GOVERNMENT HAS DONE MR DAVID ADDS IF THERE ARE CONTINUING DOUBTS ABOUT MR PAPANDREOU'S ECONOMIC AGENDA HE HAS LARGELY DEFUSED WORRIES ABOUT FOREIGN POLICY PASOK DID CAUSE A FLAP BACK IN DECEMBER WHEN MR PANGALOS CALLED GERMANY A GIANT WITH BESTIAL FORCE AND A CHILD'S BRAIN AND HAD TO APOLOGIZE BUT DIPLOMATS NOW COMPLIMENT MR PAPANDREOU FOR HIS HANDLING SO FAR OF THE EUROPEAN UNION'S ROTATING SIXMONTH PRESIDENCY MR PAPANDREOU ALSO HAS MOVED TO REPAIR RELATIONS WITH THE US HIS MEETING WITH PRESIDENT CLINTON IN BRUSSELS LAST MONTH WAS A SUCCESS THE PRESIDENT TOLD MR PAPANDREOU HE HAD READ THE PAPERS THE PRIME MINISTER WROTE IN THE 1960S AS AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY 9402150073 940215 BANC ONE'S SLIDING STOCK PRICE SCUTTLES ACCORD TO ACQUIRE NEBRASKA'S FIRSTIER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BANC ONE CORP'S AGREEMENT TO ACQUIRE FIRSTIER FINANCIAL INC IN A STOCK TRANSACTION FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK THE AGREEMENT COLLAPSED AFTER BANC ONE TURNED DOWN A REQUEST BY FIRSTIER TO INCREASE ITS BID FIRSTIER THE NO 2 BANK IN NEBRASKA HAD WANTED BANC ONE TO BOOST ITS OFFER TO COMPENSATE FOR ITS DEPRESSED STOCK PRICE BANC ONE'S STOCK HAS FALLEN SINCE IT AGREED LAST APRIL TO A 1FOR1 STOCK SWAP WHICH AT THE TIME WOULD HAVE RESULTED IN IT PAYING A VALUE OF 712 MILLION BASED ON THE APPROXIMATELY 60 A SHARE PRICE OF ITS STOCK SINCE THEN BANC ONE HAS HAD A 5FOR4 STOCK SPLIT AND A 10 STOCK DIVIDEND FIRSTIER HAD ASKED BANC ONE TO ADJUST ITS OFFER TO EQUAL THE 4486ASHARE PRICEADJUSTED FOR THE STOCK SPLIT AND DIVIDEND OR TOTAL VALUE OF 535 MILLION AT WHICH IT COULD WALK AWAY FROM THE AGREEMENT THE DECISION TO SCUTTLE THE AGREEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING BANC ONE CLOSED AT 3225 DOWN 375 CENTS IN TRADING ON THE NEW YORK STOCK EXCHANGE FIRSTIER CLOSED AT 4575 DOWN 50 CENTS IN NASDAQ STOCK MARKET TRADING MIKE MAYO AN ANALYST WITH UBS SECURITIES INC SAID BANC ONE'S STOCK HAS BEEN HURT MORE THAN MOST BANK STOCKS IN THE PAST YEAR DUE TO A BELIEF THAT ITS USE OF DERIVATIVES IS EXCESSIVE AND THAT IT WILL NOT BE ABLE TO GROW THROUGH ACQUISITIONS AT THE SAME PACE AS IT HAS IN THE PAST JOHN B MCCOY CHAIRMAN OF BANC ONE WHICH IS BASED IN COLUMBUS OHIO SAID THE COMPANY DIDN'T WANT TO INCREASE ITS BID FOR FIRSTIER BECAUSE WE HAVE A POLICY OF PROTECTING CURRENT BANC ONE SHAREHOLDERS BY NOT ACCEPTING DILUTION IN AN AFFILIATION TRANSACTION SOME ANALYSTS ALSO SAID THE AGREEMENT'S DEMISE SUGGESTS BANC ONE MIGHT HAVE PROBLEMS ACQUIRING OTHER BANKS GIVEN THE STOCK'S POOR PERFORMANCE ACCORDING TO MR MAYO OF UBS BANC ONE'S STOCK PRICE HAS SLIPPED 9 SINCE DEC 31 WHILE COMPARABLE REGIONAL BANKS SAW THEIR STOCK PRICES REMAIN ESSENTIALLY FLAT HOWEVER MR MAYO WHO RATES BANC ONE STOCK A BUY SAID I DON'T THINK THIS SOUNDS AN ALARM LONG TERM I EXPECT THE STOCK PRICE TO RECOVER AS BANC ONE CONTINUES TO GENERATE EARNINGS WITH OR WITHOUT ACQUISITIONS THE ACQUISITION WAS TO BE BANC ONE'S FIRST FORAY INTO NEBRASKA AND WAS PART OF THE COMPANY'S EFFORT TO BOLSTER ITS HOLDINGS IN THE MIDWEST BANC ONE HAS 799 BILLION IN ASSETS ONE OF FIRSTIER'S LARGEST OWNERS IS OMAHA FINANCIER WARREN BUFFETT'S BERKSHIRE HATHAWAY INC WHICH CONTROLS ABOUT 566 OF COMMON STOCK DAVID A RISMILLER CHAIRMAN OF OMAHABASED FIRSTIER SAID WE MUST ENSURE FULL ECONOMIC VALUE FOR OUR SHAREHOLDERS MR RISMILLER ADDED THAT MANAGEMENT AND THE FIRSTIER FINANCIAL BOARD OF DIRECTORS WILL WORK WITH MORGAN STANLEY & CO TO ASSESS VARIOUS STRATEGIC ALTERNATIVES FOR ENHANCING SHAREHOLDER VALUE INCLUDING POTENTIAL MERGERS AND ACQUISITIONS BANC ONE'S WITHDRAWAL MEANS ANOTHER BANK MIGHT STEP IN TO ACQUIRE FIRSTIER WHICH HAS 31 BILLION IN ASSETS ANALYSTS MENTIONED NORWEST CORP AS A POSSIBLE BIDDER NOTING THAT IT COULD ACHIEVE COST SAVINGS SINCE IT ALREADY HAS A PRESENCE IN NEBRASKA NORWEST WHICH IS BASED IN MINNEAPOLIS HAD NO COMMENT 9402150072 940215 POLITICS & POLICY STUDY OF RESIDENTIAL SEGREGATION IN US FINDS MODEST TREND TOWARD INTEGRATION BY DOROTHY J GAITER STAFF REPORTER OF THE WALL STREET JOURNAL A STUDY OF RESIDENTIAL SEGREGATION IN THE US REPORTS A MODEST BUT PERVASIVE TREND TOWARD INTEGRATION WITH CITIES IN THE SOUTH AND WEST HAVING MORE RACIALLY MIXED COMMUNITIES THAN SOME IN THE NORTHEAST AND MIDWEST WHILE THE RESEARCHERS PREDICT THE CONTINUED DECLINE OF RESIDENTIAL SEGREGATION THEY CONCLUDE WHERE THERE IS A HISTORY OF RACIAL ANTAGONISM A RING OF WHITE SUBURBS SURROUNDING A BLACK CENTRAL CITY AND LITTLE NEW HOUSING CONSTRUCTION SEGREGATION IS LIKELY TO PERSIST DESPITE MORE LIBERAL WHITE ATTITUDES AND GOVERNMENT POLICIES THE STUDY DEALT ONLY WITH BLACKWHITE RESIDENTIAL SEGREGATION IN METROPOLITAN AREAS WITH AT LEAST 20000 BLACKS OR AREAS WHERE BLACKS WERE AT LEAST 3 OF THE POPULATION THE CITIES WERE RANKED ON A SCALE FROM 0 TO 100 WITH 0 REPRESENTING TOTAL INTEGRATION AND 100 A CITY THAT WAS EITHER ALL BLACK OR ALL WHITE SEVERAL FACTORS SOCIAL ECONOMIC GEOGRAPHIC AND HISTORICAL CONTRIBUTED TO THE DEGREE TO WHICH A CITY WAS SEGREGATED THE RESEARCHERS SAY WITH A DECREASE IN THE NUMBER OF WHITES WHO SUPPORT SEGREGATED HOUSING PLAYING A MAJOR ROLE IN DETROIT IN 1974 ABOUT 41 OF WHITES SAID THEY WOULD LEAVE A NEIGHBORHOOD THAT WAS ONETHIRD BLACK THE RESEARCHERS SAY IN 1992 ONLY 29 SAID THEY WOULD LEAVE AMONG THE LEASTSEGREGATED CITIES ARE SOME ADJACENT TO MILITARY BASES WHERE HOUSING WAS ASSIGNED RANDOMLY MR FARLEY SAYS SIZE AND HEALTHY ECONOMIES ALSO MAKE A DIFFERENCE INTEGRATION OCCURS MORE EASILY IN SMALLTOMIDSIZE COMMUNITIES PLACES WHERE THE INCOME OF BLACKS APPROXIMATED THAT OF WHITES ARE LESS SEGREGATED AND THE PRESENCE OF ASIANS AND HISPANICS MITIGATES DISCRIMINATION AGAINST BLACKS SEGREGATION ALSO SEEMS LOW IN UNIVERSITY TOWNS AND STATE CAPITALS WHERE RESEARCHERS SAY A LINK CAN BE DRAWN BETWEEN MORE TOLERANT ATTITUDES AND MORE EDUCATION GOVERNMENT EMPLOYEES LIVING IN STATE CAPITALS ARE THOUGHT TO BE MORE FAMILIAR WITH AND OBSERVANT OF FAIR HOUSING LAWS COMMUNITIES WITH A LOT OF HOUSING BUILT AFTER PASSAGE OF THE FAIR HOUSING ACT OF 1968 ALSO TEND TO BE MORE OPEN THAN THOSE WITH NEIGHBORHOODS THAT MIGHT HAVE AT ONE TIME BEEN SUBJECT TO RESTRICTIVE WHITES ONLY DEEDS AND FEDERALLY SUPPORTED REDLINING THE STUDY SAID THE RESEARCHERS ALSO FOUND THAT UNLIKE THE NORTHEAST AND MIDWEST WHERE LOCAL TOWNS AND SUBURBS HAD A GREAT DEAL OF AUTONOMY AND USED IT TO EXCLUDE BLACKS POWER IN THE SOUTH WAS VESTED IN COUNTYWIDE GOVERNMENTS SUBJECT TO STATE CONTROL AS A RESULT THEY SAY WHITEFLIGHT SUBURBS DIDN'T SPROUT UP IN THE SOUTH AS THEY DID IN THE NORTH AFTER COURTS ORDERED SCHOOLS DESEGREGATED SOUTHERN WHITES HAD NO PLACE TO FLEE THEY SAID 9402150071 940215 MARKETING BRIEF NOTED REORGANIZATION SONY CORP'S SONY PICTURES ENTERTAINMENT TELEVISION GROUP REORGANIZED ITS TVPRODUCTION OPERATIONS CREATING A NEW UNIT COLUMBIA TRISTAR TELEVISION IT WILL BE HEADED BY JON FELTHEIMER 42 WHO WAS NAMED PRESIDENT AND ANDREW J KAPLAN 33 SENIOR EXECUTIVE VICE PRESIDENT WHO WAS FORMERLY EXECUTIVE VICE PRESIDENT OF THE SPE TELEVISION GROUP FIVE PREVIOUSLY AUTONOMOUS OPERATIONS WILL BE CONSOLIDATED WITHIN THE NEW UNIT MERV GRIFFIN ENTERPRISES INTERNATIONAL PRODUCTIONS INTERACTIVE TELEVISION OPERATIONS TRISTAR TELEVISION WHICH MR FELTHEIMER PREVIOUSLY HEADED AND COLUMBIA PICTURES TELEVISION WHOSE PRESIDENT SCOTT SIEGLER IS LEAVING 9402150070 940215 INTERNATIONAL BRIEF TELSTRA CORP CONCERN MULLS SCALING BACK HONG KONG TELEPHONE PLANS AUSTRALIA'S GOVERNMENTOWNED TELECOMMUNICATIONS CONCERN TELSTRA CORP IS CONSIDERING SCALING BACK ITS COMMITMENT TO PROVIDE LOCAL TELEPHONE SERVICE IN HONG KONG ACCORDING TO A TELSTRA OFFICIAL THE COMPANY IS REVIEWING ITS CURRENT AGREEMENT WITH HUTCHISON WHAMPOA LTD THAT CALLS FOR TELSTRA TO TAKE A 20 STAKE IN A NEW TELEPHONE NETWORK SERVING BUSINESS COMMUNITIES ON HONG KONG ISLAND AND THE KOWLOON PENINSULA THE NETWORK IS EXPECTED TO COST HK35 BILLION US450 MILLION TELSTRA AND HUTCHISON ARE NOW REFINING THEIR ACCORD THE TELSTRA OFFICIAL SAID ADDING THAT IT'S TOO EARLY TO SAY WHAT THE OUTCOME WILL BE HUTCHISON DECLINED TO COMMENT INDUSTRY EXECUTIVES FAMILIAR WITH THE NEGOTIATIONS SAY TELSTRA MAY DROP ITS EQUITY PARTICIPATION OPTING INSTEAD TO BE A STRATEGIC PARTNER PROVIDING THE EXPERTISE AND TECHNOLOGYBUT NOT THE CASH THE TELSTRAHUTCHISON PARTNERSHIP WAS ONE OF THREE GROUPS CHOSEN LAST YEAR BY THE HONG KONG GOVERNMENT TO PROVIDE LOCAL FIXEDLINE TELEPHONE SERVICES AFTER HONG KONG TELECOMMUNICATIONS LTD'S EXCLUSIVE FRANCHISE EXPIRES IN JULY 1995 9402150069 940215 DUFF & PHELPS PLANS TO SPIN OFF RATING OPERATION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO DUFF & PHELPS CORP SAID IT PLANS TO SPIN OFF ITS CREDITRATING OPERATION TO SHAREHOLDERS A MOVE THAT WOULD FREE IT FROM CONFLICTOFINTEREST CONCERNS THAT HAVE RESTRICTED THE PARENT COMPANY FROM MANAGING OPENEND MUTUAL FUNDS ALTHOUGH DUFF & PHELPS IS BEST KNOWN FOR ITS CREDITRATING OPERATION THE COMPANY'S LARGEST AND MOST PROFITABLE SEGMENT IS ITS INVESTMENTMANAGEMENT BUSINESS WHICH LAST YEAR GENERATED ABOUT 48 OF ITS REVENUE AND MORE THAN HALF ITS EARNINGS THE CREDITRATING OPERATION PRODUCED ABOUT ONETHIRD OF THE COMPANY'S 1993 REVENUE OF 101 MILLION DUFF & PHELPS SAID AND AN OFFICIAL SAID THAT ITS OPERATING PROFIT WAS ABOUT PROPORTIONAL THE PARENT HAD NET INCOME FOR THE YEAR OF 231 MILLION OR 130 A SHARE THE MANAGEMENT BUSINESS OPERATES THREE CLOSEDEND UTILITY FUNDS AND ALSO MANAGES FUNDS ON BEHALF OF PENSIONS AND OTHER INSTITUTIONAL INVESTORS ASSETS UNDER DISCRETIONARY MANAGEMENT AT THE END OF LAST YEAR TOTALED JUST UNDER 20 BILLION COMPARED WITH A YEAREARLIER 165 BILLION A DECADE AGO DUFF & PHELPS AGREED TO BE ACQUIRED BY THE BANK HOLDING COMPANY THEN KNOWN AS SECURITY PACIFIC CORP BUT THE LOS ANGELES CONCERN CALLED OFF THE DEAL BECAUSE OF RESTRAINTS THE FEDERAL RESERVE BOARD PUT ON THE TRANSACTION THE FED APPROVED THE TRANSACTION BUT CONDITIONED IT ON DUFF & PHELPS'S NO LONGER ISSUING PUBLIC CREDIT RATINGS CONTENDING SUCH RATING ACTIVITY REPRESENTED A POSSIBLE CONFLICT OF INTEREST WITH CERTAIN BANKING ACTIVITIES FRANCIS E JEFFRIES DUFF & PHELPS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY IN AN INTERVIEW THAT MUTUAL FUNDS HAVE BANKING POWERS FOR THE MANAGEMENT OF MONEYMARKET FUNDS BECAUSE OF THE CHECKWRITING PRIVILEGES IF WE WERE TO SET UP A FAMILY OF OPENEND FUNDS HE SAID WE WOULD WANT A SIMILAR TYPE OF ARRANGEMENT A CLOSEDEND MUTUAL FUND ISSUES A SET NUMBER OF SHARES UNLIKE AN OPENEND FUND WHICH CREATES AND REDEEMS SHARES IN RESPONSE TO INVESTOR DEMAND THE INVESTMENTMANAGEMENT COMPANY HASN'T BEEN HINDERED IN OPERATING ITS CLOSEDEND FUNDS OR ITS OTHER CURRENT BUSINESSES HE NOTED BUT ITS FLEXIBILITY HAS BEEN HAMPERED BECAUSE IT CAN'T HAVE BANK POWERS AS LONG AS THE CREDITRATING BUSINESS IS ATTACHED TO THE COMPANY BUT DUFF & PHELPS NOTED YESTERDAY IN A NEWS RELEASE THAT AFTER THE SPINOFF IT WOULD BE ABLE TO EXPLORE RELATIONSHIPS WITH BANKS REGARDING THE MANAGEMENT OF MUTUAL FUNDS AND OTHER INVESTMENT PRODUCTS THE COMPANY ALSO SAID IT MIGHT CONSIDER IN THE FUTURE AFFILIATING WITH A BROKERDEALER SAYING IT WOULD HAVE A BENEFICIAL EFFECT ON THE MARKETING AND DISTRIBUTION OF OPENEND FUNDS AND INVESTMENTRESEARCH PRODUCTS SUCH ARRANGEMENTS ARE ALSO SUBJECT TO POTENTIAL CONFLICTS OF INTEREST WITH CREDITRATING SERVICES HOWEVER MR JEFFRIES SAID THAT ONCE THE SPINOFF IS COMPLETE THE COMPANY WOULD ALSO BE FREE TO ESTABLISH OURSELF AS BROKERDEALER CONVERSELY HE NOTED THE CREDITRATING BUSINESS WOULD LIKE TO GET INTO THE AREA OF RATING MUTUAL FUNDS BUT WOULD LIKELY BE CONSTRAINED FROM DOING SO BY CONFLICTOFINTEREST CONCERNS IF IT WERE ASSOCIATED WITH DUFF & PHELPS AND THE PARENT WAS MANAGING MUTUAL FUNDS BESIDES THE INVESTMENTMANAGEMENT COMPANY THE PLANNED TAXFREE SPINOFF WOULD LEAVE DUFF & PHELPS WITH AN INVESTMENTRESEARCH OPERATION AND A SERVICE THAT PROVIDES CONSULTING AND VALUATION SERVICES 9402150068 940215 MOST OF WESTIN SLATED FOR SALE BY AOKI CORP DEAL WITH GROUP HEADED BY MEXICAN INVESTOR SET TO BRING 708 MILLION BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL AOKI CORP OF JAPAN SAID IT TENTATIVELY AGREED TO SELL MOST OF ITS WESTIN HOTELS & RESORTS CHAIN TO A GROUP OF INVESTORS HEADED BY BERNARDO DOMINGUEZ A MEXICAN ENTREPRENEUR FOR 708 MILLION UNDER A LETTER OF INTENT THE DOMINGUEZ GROUP WILL BUY WESTIN OPERATIONS IN NORTH AMERICA SOUTH AMERICA AND EUROPE THESE INCLUDE 52 MANAGED HOTELS 10 OF WHICH ARE MAJORITY OR WHOLLY OWNED BY WESTIN THE SEATTLEBASED CHAIN OPERATES 73 HOTELS IN 16 COUNTRIES WITH 36800 ROOMS THE TRANSACTION WILL INCLUDE A COMBINATION OF MORTGAGE DEBT BANK FINANCING AND MEXICAN EQUITY SAID CHINH CHU A VICE PRESIDENT WITH THE BLACKSTONE GROUP WHICH IS REPRESENTING AOKI THE TRANSACTION IS EXPECTED TO BE COMPLETED BY JUNE INVESTMENT BANKERS AT SALOMON BROTHERS REPRESENTING MR DOMINGUEZ COULDN'T BE REACHED FOR COMMENT MR DOMINGUEZ EXECUTIVE CHAIRMAN OF DSC SA DE CV COULDN'T BE REACHED FOR COMMENT DSC SA IS A CLOSELY HELD CONSTRUCTION CONCERN BASED IN THE NORTHERN MEXICAN STATE OF CHIHUAHUA WITH INTERESTS IN REAL ESTATE CONSTRUCTION RETAIL AND TOURISM AND OPERATES A CHAIN OF MEXICAN HOTELS THAT OPERATES UNDER THE NAME QUALTON HOTELS MR DOMINGUEZ IS ALSO INVOLVED WITH THE MEXICAN GOVERNMENT IN A PROPOSED 600 MILLION HOTEL RESTAURANT AND OFFICE DEVELOPMENT IN THE RESORT CITY OF CANCUN WESTIN A HIGHEREND FULLSERVICE HOTEL CHAIN HAD BEEN MARKETED AGGRESSIVELY TO PROSPECTIVE BUYERS OVER THE PAST YEAR AND HAD ATTRACTED A HOST OF FINANCIAL AND STRATEGIC BIDDERS INTERESTED IN RESTORING ITS LUSTRE THE DOMINGUEZ OFFER HAD SURFACED LATE IN THE BIDDING PROCESS WHICH IN THE EARLY STAGES HAD ATTRACTED MORE THAN 20 INTERESTED PARTIES PEOPLR FAMILIAR WITH THE TALKS SAID PAUL WACHTER MANAGING DIRECTOR FOR WERTHEIM SCHRODER & CO'S LODGING AND GAMING PRACTICE IN LOS ANGELES SAID THAT ALTHOUGH IT WAS DIFFICULT TO EVALUATE THE DEAL WITHOUT MORE DETAILED INFORMATION THE PURCHASE PRICE SEEMED HIGH ESPECIALLY CONSIDERING THAT MUCH OF THE VALUE IS IN MANAGEMENT CONTRACTS RATHER THAN REAL ESTATE AOKI BOUGHT WESTIN FOR 153 BILLION IN 1988 FROM ALLEGIS CORP THEN THE PARENT OF UNITED AIRLINES AOKI AND A GROUP OF INVESTORS THAT INCLUDED BILLIONAIRE INVESTOR ROBERT BASS QUICKLY SOLD THE WESTIN MAUNA KEA IN HAWAII AND THE PLAZA IN NEW YORK FOR ABOUT 735 MILLION BUT THE CHAIN HADN'T BEEN AGGRESSIVELY DEVELOPED UNDER AOKI'S OWNERSHIP AND HAS SUFFERED ALONG WITH THE REST OF THE HOTEL INDUSTRY FROM A PROLONGED DOWNTURN AOKI CORP A JAPANESE CONSTRUCTION COMPANY HEADED BY INVESTOR HIROYOSHI AOKI WAS SAID TO BE UNDER PRESSURE FROM ITS BANKERS TO SELL PART OR ALL OF THE CHAIN AOKI CONTINUES TO OWN THE CAESAR PARK HOTEL CHAIN AND OTHER INDEPENDENT HOTELS ROGER CLINE WORLDWIDE DIRECTOR OF HOSPITALITY CONSULTING SERVICES FOR ARTHUR ANDERSEN & CO SAID THE WESTIN BRAND STILL HAS A GOOD REPUTATION BUT WOULD REQUIRE MORE EXPANSION TO GAIN A PROFILE AS A TRULY NATIONAL BRAND HE NOTED THAT WESTIN MIGHT BENEFIT FROM FURTHER CONSOLIDATION IN THE HOTEL INDUSTRY BY PURCHASING ANOTHER SMALLER CHAIN 9402150066 940215 INTERNATIONAL CHINESE COMPUTER DEMAND MUSHROOMS ENTERPRISES SPROUT IN SILICON ALLEYS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING ECONOMIC REFORMS IN CHINA ARE NOURISHING CHINA'S FLEDGLING HIGHTECHNOLOGY INDUSTRY AND SPAWNING A WAVE OF ENTREPRENEURIAL TALENT UNIVERSITY GRADUATES AND PROFESSORS ARE HATCHING COMPANIES OF THEIR OWN OFTEN IN THE BACK STREETS OF ZHONGGUANCUN AN AREA NEAR BEIJING UNIVERSITY SILICON ALLEYS IN EFFECT IN A RECENT ARTICLE IN CHINA'S OFFICIAL PRESS YANG DAKAN OF THE STATE PLANNING COMMISSION'S ECONOMIC RESEARCH INSTITUTE PREDICTED THAT THE NUMBER OF SELFEMPLOYMENT ENTERPRISES WITH FEWER THAN EIGHT EMPLOYEES WILL SOAR THIS YEAR TO 19 MILLION AND WILL EMPLOY 32 MILLION WORKERS UP 12 FROM 1993 SALES COULD TOP 23 BILLION MOST OF CHINA'S COTTAGE INDUSTRIES ARE IN BASIC INDUSTRIES BUT HIGHTECH COMPANIES ARE MULTIPLYING MR YANG WROTE THE BUSINESS HAS MUSHROOMED SAYS MICHAEL LY NG DEPUTY GENERAL MANAGER OF LEGEND HOLDINGS LTD ONE OF THE MOST SUCCESSFUL COMPUTER COMPANIES OPERATING IN CHINA TODAY LEGEND A SIXYEAROLD JOINT VENTURE BETWEEN A HONG KONG COMPANY AND ACADEMIA SINICA THE CHINESE ACADEMY OF SCIENCES SELLS ITS OWN BRAND OF COMPUTERS IN CHINA AS WELL AS PRODUCTS FROM AST RESEARCH INC INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC SUN MICROSYSTEMS INC AND INTEL CORP LEGEND'S SALES IN THE YEAR ENDED MARCH 31 1993 TOTALED 18 BILLION HONG KONG DOLLARS 2322 MILLION PRODUCING A PROFIT OF HK264 MILLION THE COMPANY EXPECTS PROFIT TO MORE THAN DOUBLE IN THE CURRENT YEAR LIKE OTHER UPSTART TECHNOLOGY COMPANIES LEGEND HAS HIRED DOZENS OF HIGHLY TRAINED ALTHOUGH INEXPENSIVE BECAUSE OF CHINA'S LOW WAGE SCALES ENGINEERS TO HELP IT COOK UP NEW APPLICATIONS FOR ITS PRODUCTS IN A MARKETING EFFORT LEGEND STAGES DEMONSTRATIONS AT UNIVERSITIES AND EVEN PRODUCES ACADEMIC PAPERS ON THE CAPABILITIES OF THE MACHINES IT SELLS RIVALS APPARENTLY KNOW THE ROUTINE TOO COMPAQ COMPUTER CORP OF THE US HAS ANTED UP 1 MILLION FOR A RESEARCH CENTER IN BEIJING THE BIGGEST COMPETITIVE CHALLENGE LEGEND FACES IS THE PRESENCE OF STATEOWNED COMPUTER COMPANIES IN PARTICULAR GREAT WALL COMPUTER CO THE BIGGEST MAKER OF OWNBRAND COMPUTERS IN CHINA WHICH LEGEND SAYS WINS MANY ORDERS BECAUSE OF ITS TIES TO THE GOVERNMENT ALTHOUGH CHINA'S ELECTRONICS PRODUCTION EVERYTHING FROM LIGHT BULBS TO STATEMADE MILKY WAY MAINFRAME COMPUTERS LAST YEAR REACHED NEARLY 15 BILLION THE STATE IS INFUSING ONLY 15 BILLION IN NEW EQUIPMENT AND RESEARCH DURING THE CURRENT FIVEYEAR PLAN WHICH ENDS IN 1995 THAT LEAVES A YAWNING CAPITAL GAP AND A MARKET THAT ENTREPRENEURS AND UPSTART HIGHTECH COMPANIES ARE RUSHING TO FILL CHINA'S MARKET FOR PERSONAL COMPUTERS HAS BEEN GROWING AT LEAST 25 IN EACH OF THE LAST FIVE YEARS AND THE PACE IS ACCELERATING IN 1992 ABOUT 200000 PERSONAL COMPUTERS WERE SOLD IN CHINA IN 1993 ACCORDING TO A PRELIMINARY GOVERNMENT ESTIMATE THE NUMBER WAS 350000 OFFICIALS EXPECT DEMAND TO REACH AT LEAST ONE MILLION PCS BY THE YEAR 2000 NOW EVEN MOREPOWERFUL COMPUTERS ARE CATCHING ON NEC CORP THE JAPANESE COMPUTER MAKER SAID FEB 10 THAT IT'S CONSIDERING PRODUCING SMALL COMPUTER WORKSTATIONS IN CHINA IT HOPES TO CONCLUDE A FEASIBILITY STUDY BY THE END OF THIS YEAR MEANWHILE SMALLER CHINESE COMPANIES ARE CROPPING UP EVERY DAY PROVIDING SPECIALIZED SOFTWARE AND APPLICATIONS SOME SIMPLY DREAM UP SOFTWARE FOR WHAT ENGINEERS HERE DUB HANZIFICATIONENABLING PERSONAL COMPUTERS TO WRITE AND READ CHINESE CHARACTERS OR HANZI WANG YONGMIN A 55YEAROLD CHINESE ENTREPRENEUR PIONEERED THE FIELD IN THE 1980S CASIO COMPUTER CO OF JAPAN LAST YEAR SIGNED A PATENTTRANSFER WITH MR WANG'S COMPANY WANGMA COMPUTERS CORP TO USE HIS HANZIFICATION SYSTEM DIGITAL EQUIPMENT CORP ALSO HAS AN ARRANGEMENT TO USE WANGMA'S SOFTWARE AT RALPH MA'S COMPANY BEIJING SUN STEP ELECTRONICS TECHNOLOGY CO ON THE OUTSKIRTS OF BEIJING 30 RECENT UNIVERSITY GRADUATES IN SWEATERS AND JEANS DESIGN PRODUCE AND MARKET COMPUTER ADDON BOARDS THAT ENHANCE THE QUALITY OF THE GRAPHICS A MONITOR CAN SHOW BIG CLIENTS INCLUDE AIRTRAFFICCONTROL OFFICES AND COMPUTERAIDED DESIGN OR MAPPING COMPANIES AND IT EXPORTS SOME COMPONENTS SALES LAST YEAR WERE ALMOST 3 MILLION ON THE BACK OF MR MA'S BUSINESS CARD ARE TWO WORDS BEIJING BASTARDS THAT'S THE TITLE OF A CONTROVERSIAL MOVIE HE IS MARKETING AND A TICKET HE HOPES TO A MULTIMEDIA FUTURE MR MA WHO ALSO MANAGES CHINA'S HOTTEST ROCK STAR CUI JIAN FIGURES IF HE CAN JUST FIND A WAY TO LINK HIS BUDDING ENTERTAINMENT EMPIRE TO HIS MAIN BUSINESSDESIGNING PERSONAL COMPUTER SOFTWARE AND ENHANCEDGRAPHICS BOARDS HIS PROSPECTS ARE LIMITLESS ONE IDEA CREATING SOFTWARE TO FEED MOVIES DIGITALLY TO CABLETV SUBSCRIBERS TOLD THAT HUGE US COMPANIES ARE BATTLING TO DO THE SAME THING MR MA TAKES A PENSIVE DRAG ON A MARLBORO PAUSES AND SAYS YES WE HAVE HEARD OF THAT WE WANT TO MAKE FULL USE OF THE INDUSTRY TRENDS MR MA IS FOND OF AMERICAN GLITZ AND THAT'S WHAT SPARKED THE DEVELOPMENT OF HIS ENTERTAINMENT BUSINESS HE'S NOW TRYING TO MARKET THE CRITICALLY ACCLAIMED THOUGH OFFICIALLY CONDEMNED UNDERGROUND FILM BEIJING BASTARDS WHICH MR MA DESCIBES AS A VERY DRUGGY DEPICTION OF YOUNG REBELLIOUS CHINESE MUSICIANS WE WANT TO BE HUGE ON THE ENTERTAINMENT SIDE AND THEN WE WILL USE THIS TECHNOLOGY TO SELL WHAT CHINA HAS TO THE REST OF THE WORLD MR MA SAYS ONE OF HIS SOFTWARE ENGINEERS 26YEAROLD WANG LING IS ENTHUSIASTIC AT THE PROSPECT MULTIMEDIA IS VERY POPULAR IN CHINA IT'S TALKED ABOUT EVERYWHERE 9402150065 940215 BUSINESS BRIEF ARCH PETROLEUM INC PACT SET TO BUY PROPERTIES FROM SUBSIDIARY OF CHEVRON ARCH PETROLEUM INC SAID IT AGREED TO PAY CHEVRON USA INC 20 MILLION FOR OIL AND GAS PROPERTIES ARCH BASED IN FORT WORTH TEXAS SAID THE LEA COUNTY NEW MEXICO PROPERTIES INCLUDE INTERESTS IN ABOUT 130 PRODUCING OIL AND GAS WELLS WITH AVERAGE DAILY PRODUCTION TOTALING ABOUT 900 BARRELS OF OIL AND 65 MILLION CUBIC FEET OF NATURAL GAS THE OIL AND NATURALGAS COMPANY SAID THE CLOSING IS SET FOR MARCH 31 AND ARCH WILL ASSUME OPERATION OF THE PROPERTIES APRIL 1 CHEVRON USA IS UNIT OF OIL AND NATURALGAS CONCERN CHEVRON CORP SAN FRANCISCO IN A STATEMENT LARRY KALAS PRESIDENT OF ARCH SAID THE PROPERTIES REPRESENT A STRATEGIC ADDITION TO ARCH'S STRONG RESERVE BASE IN THE PERMIAN BASIN MR KALAS ALSO SAID CURRENT PRODUCTION WILL POSITIVELY AFFECT THE COMPANY'S REVENUE CASH FLOW AND EARNINGS 9402150064 940215 BUSINESS BRIEF CHRYSLER CORP AUTO MAKER RECALLS SEDANS TO FIX TRANSMISSION WIRING CHRYSLER CORP ANNOUNCED A RECALL OF 110000 1994 DODGE INTREPIDS EAGLE VISIONS AND CHRYSLER CONCORDES NEW YORKERS AND LHSS BECAUSE OF AN ELECTRICAL PROBLEM CHRYSLER IS RECALLING SEDANS BUILT BETWEEN LATE JULY AND EARLY DECEMBER 1993 A TRANSMISSION WIRING FLAW COULD STOP THE VEHICLES FROM STARTING CAUSE LIGHTS TO MALFUNCTION OR CAUSE A SEDAN TO OPERATE ONLY IN SECOND GEAR A SPOKESMAN SAID THE HIGHLAND PARK MICH AUTO MAKER IS REPAIRING THE PROBLEM BY REROUTING THE WIRES AND PROTECTING THEM FROM A STEERING ROD WHICH BY RUBBING AGAINST THE WIRES CAN SHORT OUT THE SYSTEM 9402150063 940215 WORLD MARKETS TOKYO STOCK PRICES FALL 31 EARLY TUESDAY AFTER 27 PLUNGE ON COLLAPSE OF TRADE TALKS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS TUMBLED 27 MONDAY AFTER THE FAILURE OF THE USJAPAN TRADE SUMMIT SENT THE YEN ROCKETING UPWARD AND A FURTHER 31 TUESDAY MORNING MANY OTHER ASIAN STOCK MARKETS ALSO SLUMPED ON MONDAY WITH HONG KONG AND TAIPEI EACH PLUNGING 45 LONDON SHARES FELL BUT ENDED ABOVE THE DAY'S LOWS IN LIFELESS TRADING IN FRANKFURT PRICES ROSE 12 ON HOPES FOR A GERMAN INTERESTRATE EASING THIS WEEK WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11692 UP 090 REFLECTING HIGHER EUROPEAN AND ASIA/PACIFIC MARKETS AND LOWER AMERICAN MARKETS TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12635 UP 323 OR 26 WITH TRIMAC OF CANADA POSTING A 16 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 21891 DOWN 499 OR 22 WITH DUNLOP OF MALAYSIA SLIDING 73 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 14932 POINTS THURSDAY SLUMPED 53145 MONDAY ITS SECONDBIGGEST FALL THIS YEAR TO 1945925 THE MARKET WAS CLOSED FRIDAY FOR A NATIONAL HOLIDAY MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3595 MILLION SHARES IN THE PREVIOUS SESSION DECLINING ISSUES SWAMPED GAINERS 934155 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 1012 POINTS THURSDAY SKIDDED 2616 OR 16 TO 158198 AT THE CLOSE OF TRADING TUESDAY MORNING THE AVERAGE HAD PLUMMETED A FURTHER 61207 POINTS TO 1884718 THE YEN'S STEEP GAINS FOLLOWED LAST WEEK'S NEWS THAT THE US AND JAPAN BROKE OFF THEIR SOCALLED FRAMEWORK TALKS TO IMPROVE BILATERAL TRADE LEAVING THE TOKYO MARKET DEEPLY PESSIMISTIC THE YEN WAS DRIVEN UP BY SPECULATION IN THE FOREIGNEXCHANGE MARKET THAT THE CLINTON ADMINISTRATION WILL TRY TO BOOST THE JAPANESE CURRENCY TO MAKE JAPAN'S EXPORTS RELATIVELY MORE EXPENSIVE INVESTORS ON THE STOCK MARKET ALSO WERE WORRIED ABOUT POSSIBLE US TRADE SANCTIONS AGAINST JAPAN WHICH COULD HURT ITS EXPORTERS IN LONDON MONDAY THE FINANCIAL TIMESSTOCK EXCHANGE 100STOCK INDEX DROPPED 154 POINTS TO 33635 UP FROM THE SESSION'S TROUGH OF 33502 THE FT 30STOCK INDEX DECLINED 86 POINTS TO 25867 VOLUME WAS 6169 MILLION SHARES COMPARED WITH ONE BILLION SHARES IN THE PREVIOUS SESSION THE MARKET WAS STAGNANT FOLLOWING LAST WEEK'S VOLATILITY WHICH LEFT INVESTORS WARY THE EXCHANGE ALSO WAS ON HOLD PENDING THIS WEEK'S RELEASE OF SEVERAL REPORTS ON BRITAIN'S ECONOMY WHICH WILL PROVIDE A CLEARER PICTURE FOR MAKING DECISIONS ON STOCKS LOSSES IN TOKYO AND OTHER ASIAN BOURSES ALSO PRESSURED THE LONDON MARKET MINDFUL OF BRITISH CORPORATE EARNINGS REPORTS TO START IN A FEW WEEKS IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 2540 POINTS TO 211601 THOUGH DEALINGS WERE QUIET THE INDEX LAST WEEK LOST A TOTAL OF 2835 POINTS INVESTORS' HOPES SWELLED FOR A REDUCTION IN KEY INTEREST RATES WHEN THE GERMAN BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL MEETS THURSDAY THE CENTRAL BANK LAST CUT RATES OCT 21 THE HOPES WERE RAISED BY POOR UNEMPLOYMENT DATA AND RELATIVELY GOOD INFLATION FIGURES FOR GERMANY THE MARKET WASN'T MUCH AFFECTED BY THE BREAKDOWN OF CONTRACT NEGOTIATIONS LATE FRIDAY BETWEEN INDUSTRIAL EMPLOYERS AND THE METAL WORKERS UNION IN PARIS THE MARKET SANK 14 IN THIN TRADING MARKED BY AN ABSENCE OF NEWS TO STIR INVESTORS WHO ALSO WERE DETERRED BY AN UNUSUAL COLD SPELL AND SNOWFALL IN THE FRENCH CAPITAL DESPITE THE MAIN INDEX'S SHARP DECLINE SELLING WASN'T HEAVY THOUGH THE MARKET HAD NAGGING DOUBTS ABOUT WHETHER GERMANY WILL LOWER RATES THIS WEEK IN AMSTERDAM SHARES ENDED BROADLY LOWER DRIVEN DOWN BY PROFITTAKING AMID LACKLUSTER TURNOVER OTHER MARKETS' DECLINES AND A SLIGHTLY LOWER DOLLAR IN FOREIGNEXCHANGE DEALINGS PRESSURED STOCKS AND THINNED ACTIVITY IN MILAN PROFITTAKING PULLED SHARE PRICES DOWN ON THE FIRST DAY OF THE MARCH TRADING ACCOUNT AND THE INDEX THAT INCLUDES ISSUES TRADED ELECTRONICALLY LOST 11 IN WHAT WAS TERMED A HEALTHY CORRECTION IN MADRID STOCKS SLUMPED BECAUSE OF A GLOOMY ECONOMIC OUTLOOK FOR SPAIN BASED ON DATA SHOWING RISING UNEMPLOYMENT WORSETHANEXPECTED JANUARY INFLATION AND LITTLE LIKELIHOOD FOR SPANISH RATE REDUCTIONS SOON IN STOCKHOLM SHARES ADVANCED BUT CLOSED BELOW THE DAY'S HIGHS AS THE MARKET LOST STEAM PARTLY BECAUSE OF THE ABSENCE OF FOREIGN BUYERS THE GAINS CAME ON CORPORATE NEWS AND DECLINING SWEDISH LENDING RATES IN ZURICH STOCKS SANK 13 BUT DEALINGS WERE EXTREMELY QUIET IN THE ABSENCE OF FRESH NEWS IN HONG KONG DASHING HOPES FOR THE TRADITIONAL RALLY FOLLOWING THE CHINESE NEW YEAR CELEBRATIONS THE HANG SENG INDEX PLUMMETED 51522 POINTS THE FIFTHBIGGEST DROP EVER IN TERMS OF POINTS TO 1098881 STOCKS OPENED LOWER BECAUSE OF WEAKNESS IN OTHER MARKETS DURING THE HONG KONG BOURSE'S HOLIDAY BREAK AND LOSSES CONTINUED THROUGHOUT THE SESSION LED BY HANG SENG FUTURES CONTRACTS FOREIGN INVESTORS CONTINUED THEIR RECENT PATTERN OF SELLING BUT LOCAL RETAIL BUYERS DIDN'T APPEAR AS A BUFFER INCLUDING MONDAY'S DROP THREE OF THE BLUECHIP INDEX'S FOUR BIGGEST DECLINES OCCURRED THIS YEAR BUT IN PERCENTAGE TERMS MONDAY'S LOSS DIDN'T APPROACH SEVERAL DOUBLEDIGIT PLUNGES IN THE PAST TWO DECADES IN SYDNEY THE BENCHMARK INDEX SLIPPED AND SHARE PRICES MOSTLY LOST GROUND BUT ENDED UP FROM THEIR LOWS FOR THE SESSION THE FINISH CONTINUED THE TREND FROM LAST WEEK WHEN THE MARKET FELL 39 STOCKS OPENED WEAKER ON EXPECTATIONS OF SELLOFFS IN TOKYO AND HONG KONG THOSE DOWNTURNS WEREN'T AS LARGE AS EXPECTED BUT SYDNEY INVESTORS ALSO WERE CONCERNED ABOUT A TRADE IMPASSE BETWEEN JAPAN AND THE US IN SINGAPORE SHARES ENDED SOLIDLY LOWER IN QUIET DEALINGS AS SENTIMENT WAS SUBDUED FOLLOWING A FOURDAY BREAK TO CELEBRATE THE LUNAR NEW YEAR IN KUALA LUMPUR WHICH ALSO HAD A LONG HOLIDAY CLOSING THE MARKET LOST 14 IN MODERATE TRADING PRICES OPENED HIGHER BUT QUICKLY SOFTENED BECAUSE OF PROFITTAKING IN TAIPEI THE 45 LOSS WAS BROADLY BASED AND ATTRIBUTED TO WEAK BUYING INTEREST LINKED PARTLY TO THE TAIWAN CENTRAL BANK'S TIGHT MONETARY POLICY AND TO MARGIN LENDERS FOR BUYING STOCKS ON CREDIT BEING AT THEIR MAXIMUM LOAN LIMITS THE FINANCE SECTOR LED THE LOSERS PLUNGING 63 IN SEOUL PRICES TUMBLED 17 IN LIGHT TURNOVER CONTINUING LAST WEEK'S CORRECTION TRIGGERED BY THE THIRD ROUND OF MARKETCOOLING MEASURES BY THE SOUTH KOREAN GOVERNMENT LOSSES WERE SPREAD ACROSS THE BOARD IN MANILA SHARES SKIDDED 11 IN MODERATE DEALINGS HURT BY PROFITTAKING IN WELLINGTON LACK OF OVERSEAS BUYING AND SOME PROFITTAKING PUSHED THE STOCK MARKET LOWER IN LATE TRADING AND THE MAIN INDEX SANK 13 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 9402150062 940215 CREDIT RATINGS INTERLAKE CORP LISLE ILL STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ABOUT 220 MILLION OF THE DEBT OF THIS MAKER OF AUTOMOTIVE AEROSPACE MATERIALSHANDLING AND PACKAGING PRODUCTS THE RATINGS CONCERN SAID IT LOWERED THE COMPANY'S SUBORDINATED DEBT TO TRIPLECPLUS FROM SINGLEBMINUS AND ALSO REMOVED THE RATING FROM CREDITWATCH S&P SAID THE DOWNGRADE REFLECTS INTERLAKE'S WEAKENED FINANCIAL PROFILE ALTHOUGH THE COMPANY RECENTLY NEGOTIATED RELAXED COVENANTS ON ITS BANKCREDIT FACILITY TO PREVENT A POTENTIAL DEFAULT S&P SAID AN ONEROUS DEBT BURDEN AND WEAK OPERATING PERFORMANCE PLACE THE FIRM UNDER CONTINUED FINANCIAL STRESS S&P SAID THAT WHILE PROSPECTS IN DOMESTIC MARKETS ARE STRENGTHENING WEAK FOREIGNMARKET CONDITIONS WILL LIMIT THE IMPROVEMENT IN EARNINGS AND CASH FLOW FURTHER IT SAID THE COMPANY'S RATINGS OUTLOOK IS NEGATIVE AND COULD BE LOWERED IF THE COMPANY FAILS TO TAKE SUFFICIENT STEPS TO RELIEVE FINANCIAL STRESS OR IF OPERATIONS FAIL TO SHOW SIGNIFICANT IMPROVEMENT OVER THE NEXT FEW QUARTERS INTERLAKE HAD NO COMMENT ON THE ACTION 9402150059 940202 RULE OF LAW RICO'S LATEST VICTIM SOCIAL PROTEST BY BRUCE LEDEWITZ IN AN OPINION FOR A UNANIMOUS COURT CHIEF JUSTICE WILLIAM REHNQUIST LAST WEEK HELD IN NOW V SCHEIDLER THAT THE SANCTIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO CAN BE APPLIED AGAINST ANTIABORTION PROTESTERS IN SCHEIDLER THE NATIONAL ORGANIZATION FOR WOMEN AND ABORTION CLINICS SUED THE PROLIFE ACTION NETWORK AND SEVERAL INDIVIDUALS ALLEGING THAT PROLIFE DEMONSTRATORS HAD VIOLATED FEDERAL AND STATE LAW IN THEIR ATTEMPTS TO CLOSE DOWN THE CLINICS THE RICO CLAIM ALLEGED THAT THE DEFENDANTS COMMITTED TWO OR MORE ACTS OF INTERSTATE EXTORTION BY USING FORCE VIOLENCE OR FEAR TO INDUCE THE CLINICS TO GIVE UP THEIR RIGHT TO OPERATE THE DEFENDANTS ARGUED THAT RICO SHOULD NOT APPLY TO AN ESSENTIALLY POLITICAL STRUGGLE BUT SHOULD BE LIMITED TO CRIMES WITH A PROFITGENERATING MOTIVE THE COURT HELD HOWEVER THAT THERE IS NO RICO REQUIREMENT OF ECONOMIC MOTIVE AS A MATTER OF SIMPLE STATUTORY INTERPRETATION THE OPINION WAS OVERLY BROAD THE COURT HAD PREVIOUSLY HELD IN 1961 AND 1965 THAT THE SHERMAN ANTITRUST ACT DOES NOT APPLY TO EFFORTS TO CHANGE LAW EVEN IF DONE BY CONSPIRACY AND WITH AN ANTICOMPETITIVE MOTIVE A SIMILAR APPROACH SHOULD HAVE BEEN USED TO LIMIT RICO IN THIS CASE BUT THE MOST SERIOUS FAILURE IN THE OPINION WAS THE JUSTICES' INABILITY TO APPRECIATE THE POSITIVE ROLE THAT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST HAS PLAYED IN AMERICAN HISTORY IMPLICIT IN THE LEAD OPINION BUT MADE QUITE EXPLICIT IN THE CONCURRENCE BY JUSTICES DAVID SOUTER AND ANTHONY KENNEDY IS THE VIEW THAT SOCIAL PROTEST CAN BE DIVIDED INTO TWO TYPES THAT PROTECTED BY THE FIRST AMENDMENT WHICH CANNOT BE MADE ILLEGAL AT ALL AND THAT NOT PROTECTED BY THE FIRST AMENDMENT WHICH CAN BE PUNISHED QUITE SEVERELY A MOMENT'S REFLECTION SHOWS THAT IN FACT SOCIAL PROTEST HAS NEVER LIMITED ITSELF TO LEGAL FORMS IN THE EARLY 20TH CENTURY LABOR UNIONS OCCUPIED FACTORIES AND REFUSED TO MOVE AT AROUND THE SAME TIME WOMEN'SRIGHTS ADVOCATES CHAINED THEMSELVES TO FENCES AT THE WHITE HOUSE LATER CIVILRIGHTS AND STUDENT PROTESTERS ROUTINELY INVADED BUSINESS AND SCHOOL PREMISES IN MASSIVE SITINS AND TODAY A WIDE VARIETY OF PROTESTERS ROUTINELY CLIMB FENCES AND BREAK DOWN DOORS TO TRY TO STOP POWER PLANTS INCINERATORS AND SO FORTH NONE OF THESE ACTIVITIES HAVE EVER BEEN PROTECTED BY THE FIRST AMENDMENT OBVIOUSLY NO SOCIETY COULD TOLERATE UNRESTRICTED FORCEFUL ENTRY AND TRESPASS BUT JUST AS OBVIOUSLY THESE ILLEGAL BUT ESSENTIALLY PEACEFUL FORMS OF PROTEST HAVE SERVED A VERY IMPORTANT ROLE IN US HISTORY BY DRAMATIZING OPPOSITION TO THE STATUS QUO ILLEGAL PROTEST HAS ALSO CHANNELED ALIENATED COMMUNITIES AWAY FROM VIOLENCE AND INTO THE STYLIZED ACTIONS OF CIVIL DISOBEDIENCE AND THE SITIN THESE FORMS OF ILLEGAL PROTESTS HAVE BEEN MANAGED BY AN UNSTATED BUT CLEAR SOCIAL CONVENTION THAT THE CRIMES COMMITTED ARE NOT THAT SERIOUS IN PRACTICE THE PROTESTERS ARE FORCIBLY REMOVED SPEND SOME TIME IN JAIL AND THE CHARGES ARE IN MOST CASES LATER DROPPED IF THE PROTESTS CONTINUE ACTUAL JAIL SENTENCES ARE SERVED BUT THESE SENTENCES USUALLY AMOUNT TO ONLY A FEW DAYS PROSECUTORS AND STATE JUDGES UNDERSTAND THAT THEIR ROLE IS TO MINIMIZE AND CONTROL THE DISRUPTIONS NOT TO END THE PROTESTS AND NOT TO DESTROY THE PROTESTING ORGANIZATION THE COURT'S SCHEIDLER DECISION PUTS AN END TO THIS ACCOMMODATION UNDER THE COURT'S OPINION TWO ACTS OF FORCEFUL ENTRY INTENDED TO INTERFERE WITH THE RIGHTS OF BUSINESS CAN BE CONSIDERED EXTORTION FOR PURPOSES OF THE RICO ACT EVEN IF THE CONTEXT IS OBVIOUSLY ONE OF POLITICAL STRUGGLE RATHER THAN ECONOMICALLY MOTIVATED CRIMINAL ACTIVITY THUS IF ABORTION DEMONSTRATORS TWICE PUSH THEIR WAY INTO A CLINIC'S WAITING ROOM OCCUPY IT BLOCK THE HALLWAYS AND REFUSE TO MOVE THE DEMONSTRATORS ARE ALL SUBJECT TO RICO THEY MAY BE JAILED FOR UP TO 20 YEARS THEY CAN BE MADE TO PAY TREBLE DAMAGES AND/OR PUNITIVE DAMAGES THE ORGANIZATION THAT SPONSORED THEM AND ANYONE WHO ENCOURAGED THEM ARE SUBJECT TO THE SAME SEVERE PENALTIES IT IS CLEAR THAT UNDER THESE CIRCUMSTANCES ONLY THE HARDIEST SOULS WILL ENGAGE IN SITINS ORGANIZATIONS LIKE GREENPEACE THAT ROUTINELY ENGAGE IN SUCH ACTIVITY ARE NO DOUBT SERIOUSLY RECONSIDERING THEIR TACTICS IT IS TRUE THAT EVEN UNDER THE SCHEIDLER OPINION THE PROTESTER WILL EVENTUALLY BE ABLE TO ARGUE TO A CIVIL OR CRIMINAL JURY THAT THE PROTEST ACTIVITY DID NOT AMOUNT TO EXTORTION BECAUSE THERE WAS INSUFFICIENT FORCE OR BECAUSE OTHERS PRESENT AT THE PROTEST WERE NOT REASONABLY PUT IN FEAR BY THE PROTEST SOMETIMES THEY WILL WIN SUCH ARGUMENTS BUT THE PROTECTION OF THE JURY THOUGH IMPORTANT DOES NOT LESSEN SCHEIDLER'S THREAT TO THE SITIN IF THE REALISTIC POTENTIAL PUNISHMENT FOR A SITIN IS A DAY OR TWO IN JAIL MANY PEOPLE WILL ENGAGE IN THE PRACTICE IF THE STAKES ARE INSTEAD A JURY TRIAL A SUBSTANTIAL FINE 20 YEARS IN JAIL AND CIVIL DAMAGES FEW PEOPLE WILL SIT IN IT IS ALSO TRUE THAT CONCURRING JUSTICES SOUTER AND KENNEDY ARE AWARE THAT THE SCHEIDLER DECISION THREATENS SOCIAL PROTEST JUSTICE SOUTER INVOKED A 1982 CASE NAACP V CLAIBORNE HARDWARE CO TO REMIND LOWER COURT JUDGES TO BE SENSITIVE TO FREESPEECH VALUES IN TRYING RICO CASES CLAIBORNE HELD THAT THE NAACP COULD NOT BE LIABLE FOR ORGANIZING A CIVILRIGHTS BOYCOTT OF LOCAL BUSINESSES EVEN THOUGH BOYCOTTS BY ECONOMIC COMPETITORS ARE ACTIONABLE UNFORTUNATELY AS JUSTICE SOUTER NOTES CASES LIKE CLAIBORNE PROTECT SOCIAL PROTEST ONLY TO THE EXTENT THAT THE ACTIONS TAKEN TURN OUT TO BE FULLY PROTECTED FIRST AMENDMENT ACTIVITY THE SITIN IS NOT PROTECTED BY THE FIRST AMENDMENT NOR SHOULD IT BE PEOPLE CANNOT BE ALLOWED FREELY TO INVADE THE PROPERTY OF OTHERS THAT DOES NOT MEAN HOWEVER THAT WE SHOULD TRY TO STAMP OUT SITINS COMPLETELY THE SITIN SHOULD BE DISCOURAGED BY THE LAW OF TRESPASS IT SHOULD NOT BE SUBJECT TO FELONY AND TREBLEDAMAGE TREATMENT AS RICO WOULD ALLOW NO DOUBT THERE ARE MANY WHO APPLAUD THE COURT'S DECISION IN SCHEIDLER SOME DO SO BECAUSE THEY SUPPORT ABORTION RIGHTS AND CONSIDER ANTIABORTION PROTESTERS TO BE TERRORISTS SOME DO SO BECAUSE THEY SUPPORT PROPERTY RIGHTS AND SEE NO REASON WHY THE LAW SHOULD EVER BE VIOLATED THESE VIEWS ARE SHORTSIGHTED RICO WAS NEVER NEEDED TO COMBAT TRULY VIOLENT PROTEST MURDER ASSAULT AND ARSON ALREADY CARRY SEVERE STATE AND FEDERAL PENALTIES RICO LAWSUITS WILL NOT BE AIMED AT THEM RATHER THEY WILL BE AIMED AT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST FIRST ABORTION CLINICS WILL USE RICO TO DEFEND THEMSELVES AGAINST PROTEST EVENTUALLY POWERFUL ECONOMIC INTERESTS MAY DO SO PROTEST WILL NOT END BUT IT WILL BECOME LESS OPEN AND MORE SECRETIVE LESS PEACEFUL AND MORE VIOLENT LESS HOPEFUL AND MORE BITTER MR LEDEWITZ IS A PROFESSOR OF LAW AT DUQUESNE UNIVERSITY IN PITTSBURGH SEE RELATED LETTER ANTIABORTIONIST TACTICS ANYTHING BUT PEACEFUL' WSJ FEB 15 1994 9402020112 YY94 MM02 9402150058 940203 REVIEW & OUTLOOK EDITORIAL LABOR BLOWS RIGHT WHISTLE IT'S FEEDING TIME AT THE IOWA TROUGH AGAIN THE ISSUE IS PUBLIC SUBSIDY FOR CORPORATE DEVELOPMENT AND THIS TIME BIG LABOR HAS IT RIGHT AND THE PROBUSINESS REPUBLICAN GOVERNOR HAS IT WRONG IOWA GOVERNOR TERRY BRANSTAD WANTS TO OFFER ABOUT 73 MILLION IN SUBSIDIES TO LURE IPSCO A CANADIAN STEELMAKER TO LOCATE A PLANT NEAR THE MISSISSIPPI RIVER TOWN OF MONTPELIER WITH 300 JOBS INITIALLY PLEDGED THAT WOULD AMOUNT TO ABOUT 243000 IN SPECIAL TAX BREAKS AND GRANTS FOR EACH OF THE WORKERS THIS WOULDN'T SET THE RECORD KENTUCKY HOLDS THAT AT 350000 A POP ALSO FOR A MINIMILL RUN BY ANOTHER CANADIAN STEELMAKER BUT IOWA IS NO PIKER IN THE STATES' BIDDING WAR FOR DESIRED BUSINESSES AND IPSCO THINKS IT CAN GET ITS PRICE FROM SOMEONE SO IT'S TOLD THE IOWA LEGISLATURE TO GET A MOVE ON APPROVING THE DEAL THE IOWA FEDERATION OF LABOR SAYS STOP PRESIDENT JAMES WENGERT OBJECTS TO FAVORING SELECT COMPANIES WITH CORPORATE WELFARE AT THE EXPENSE OF OTHER POTENTIAL USES FOR THE TAX MONEY ONE SUCH USE WE'D SUGGEST COULD BE GENERAL TAX RELIEF SUCH AS A REDUCTION IN THE PROPERTY LEVY ON EXPENSIVE MACHINERY THAT VEXES THE IPSCO FOLKS AND NO DOUBT MANY OTHER BUSINESSES MR WENGERT SAYS LABOR IS OPPOSED EVEN THOUGH HE EXPECTS AN IPSCO FACILITY TO BE UNIONIZED AS ITS CANADIAN PLANTS ARE AN EXISTING UNION STEELMAKER IN THE AREA CONTENDS IT COULD BE PLACED AT A DISADVANTAGE INDEED AS TOM VILSACK A DOWNRIVER DEMOCRATIC STATE SENATOR OBSERVES YOU'RE ACTUALLY PICKING AND CHOOSING BUSINESSES SEVERAL DEMOCRATS IN IOWA AT LEAST DON'T THINK THAT'S A PROPER ROLE FOR GOVERNMENT THEY OUGHT TO SEND THAT MESSAGE TO THE WHITE HOUSE THE HANDOUT GAME WHETHER IT INVOLVES STEEL MILLS OR BASEBALL TEAMS OR HIGHTECH R&D STOPS WHEN POLITICIANS FATHOM OR ARE MADE TO LEARN THAT IT DOESN'T PAY OFF IN MOST CASES AND IT ISN'T THEIR ROLE IN LIFE TO BESTOW THESE FAVORS ANYWAY THEY OUGHT TO ATTEND TO COMPETITIVENESS BY MAXIMIZING THE APPEAL OF THEIR JURISDICTION TO EVERY KIND OF ENTERPRISE NOT JUST THOSE WITH A BIG SNOUT SEE RELATED LETTER LETTERS TO THE EDITOR TAX INCENTIVES HELP CREATE JOBS WSJ FEB 15 1994 9402030085 YY94 MM02 9402150057 940203 POLITICS & PEOPLE COELHO ON CONGRESSIONAL REFORM BY ALBERT R HUNT IN THE SPIRIT OF TAPPING JOSEPH KENNEDY TO OVERHAUL THE SECURITIES & EXCHANGE COMMISSION 60 YEARS AGO WHO BETTER TO PRESCRIBE CHANGES FOR THE TROUBLED INSTITUTION OF CONGRESS THAN TONY COELHO THE 51YEAROLD MR COELHO AFTER A METEORIC RISE RESIGNED AS HOUSE DEMOCRATIC WHIP IN 1989 UNDER A CLOUD OF ETHICAL SUSPICION HE HAS GONE ON TO ACHIEVE STUNNING SUCCESS WITH WERTHEIM SCHRODER & CO A WALL STREET INVESTMENT FIRM IN THE PROCESS HE WAS CLEARED OF ANY LEGAL WRONGDOING HE STILL POSSESSES ENORMOUS AFFECTION FOR CONGRESS BUT BRINGS A PERSPECTIVE THAT COMES ONLY FROM DISTANCE SITTING IN ONE OF HIS OFFICES LATE LAST WEEK SURROUNDED BY PICTURES AND MEMORABILIA OF HIS EARLIER LIFE THE FORMER CALIFORNIA DEMOCRATIC LAWMAKER ZEROS IN ON WHAT'S WRONG CONGRESS HAS BECOME STAGNANT IT HASN'T GROWN WITH THE CHANGES THAT HAVE OCCURRED IN SOCIETY THEY HAVE CREATED MORE POWER CENTERS AND WITH THEM MORE OPPORTUNITIES FOR GRIDLOCK THESE ARE NOT ONLY LEGISLATIVE CENTERS BUT YOU THEN GET THE LAW FIRMS THE LOBBYISTS AND ALL THE INDUSTRIES THAT THEN FIT IN WITH THEM JUST AS JOE KENNEDY WAS ABLE TO MANIPULATE FINANCIAL MARKETS IN THE 1920S TONY COELHO WAS ABLE TO MANIPULATE THIS SYSTEM IN THE 1980S HE UNDERSTOOD THESE POWER CENTERS AND HOW THEY THRIVED ON WHAT THE LATE CALIFORNIA POLITICIAN JESSE UNRUH CALLED THE MOTHER'S MILK OF POLITICS MONEY OR CAMPAIGN CONTRIBUTIONS HERE'S HOW TONY COELHO WOULD CHANGE THE SYSTEM HE KNOWS SO WELL LIMIT SERVICE ON CONGRESSIONAL COMMITTEES RATHER THAN IMPOSE TERM LIMITS FOR OFFICE A CONSTITUENCY HAS A RIGHT TO ELECT THEIR REPRESENTATIVE FOR AS LONG AS THEY WANT SAYS MR COELHO WHO SERVED FOR 11 YEARS AND HAS EXTOLLED THE VIRTUES OF CHANGE AND TURNOVER TO OLD CONGRESSIONAL FRIENDS BUT CONGRESSIONAL TERM LIMITS WOULD ELIMINATE MUCH OF THE KNOWLEDGE AND EXPERIENCE IN CONGRESS AND IN EFFECT TURN OVER POWER TO STAFF TO LOBBYISTS AND TO THE PRESS I DON'T THINK THAT'S WHERE THE POWER SHOULD BE THE UNDERLYING CASE FOR TERM LIMITS THAT CONGRESS IS DOMINATED BY LONGSERVING PROFESSIONAL POLITICIANS IS ERODING CHARLES COOK THE BEST INDEPENDENT ELECTION ANALYST NOW CALCULATES THAT IN THE NEXT CONGRESS AT LEAST 225 TO 230 REPRESENTATIVES OR OVER HALF THE HOUSE WILL HAVE BEEN ELECTED IN THE 1990S INSTEAD MR COELHO WANTS TERM LIMITS FOR COMMITTEE SERVICE SIX YEARS ON A SUBCOMMITTEE AND EIGHT YEARS ON A FULL COMMITTEE THEN LAWMAKERS WOULD HAVE TO ROTATE COMMITTEE ASSIGNMENTS WHEN INDIVIDUALS HAVE BEEN SUBCOMMITTEE OR COMMITTEE CHAIRMEN FOR TOO LONG THEY ARE NOT AS RECEPTIVE TO NEW IDEAS NEW CHALLENGES A SAM NUNN OR A DAN ROSTENKOWSKI HOWEVER WOULD RETAIN EXPERTISE FROM HIS PREVIOUS COMMITTEES YOU PROBABLY WOULDN'T SEE AS MANY PEOPLE STAYING AS LONG BUT YOU STILL WOULD RETAIN A LOT OF THE KNOWLEDGE AND EXPERIENCE AND IT WOULD MAKE FOR MUCH MORE INTERESTING FLOOR DELIBERATIONS MR COELHO NOTES AUTOMATICALLY REORGANIZE CONGRESS EVERY DECADE AN OFTREPEATED MYTH IS THAT CONGRESSIONAL STAFFS AND SUBCOMMITTEES HAVE BEEN MUSHROOMING YET AS LAST YEAR'S EXCELLENT STUDY OF CONGRESS BY THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION REPORTED CONGRESSIONAL STAFFING HAS BEEN LEVEL FOR MORE THAN A DECADE AND THE NUMBER OF SUBCOMMITTEES IS DECLINING SUBCOMMITTEES DID PROLIFERATE AFTER WORLD WAR II REACHING A PEAK IN BOTH BODIES IN 1975 151 IN THE HOUSE AND 140 IN THE SENATE BUT THEY HAVE DROPPED TODAY TO 115 IN THE HOUSE AND 86 IN THE SENATE TONY COELHO SAYS THE SYSTEM STILL IS OUT OF KILTER STAFF AND SUBCOMMITTEES COULD BE CUT SOME MORE HE BELIEVES AND THERE'S AN OBVIOUS NEED FOR REARRANGING LEGISLATIVE RESPONSIBILITIES HERE MR COELHO SHIES AWAY FROM SPECIFICS BUT SOME ARE APPARENT PANELS LIKE THE HOUSE ADMINISTRATION COMMITTEE AND THE SENATE SELECT COMMITTEES OUGHT TO BE ELIMINATED AND IT'S CLEAR THAT THE HOUSE WAYS AND MEANS AND SENATE FINANCE COMMITTEES HAVE TOO WIDE A JURISDICTION MOST CONGRESSIONAL CHANGES ARE DONE ON AN AD HOC BASIS SO THE FORMER HOUSE DEMOCRATIC WHIP WANTS AN AUTOMATIC REORGANIZATION AT LEAST EVERY 10 YEARS DIRECTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF BOTH HOUSES COMBINED WITH TERM LIMITS FOR COMMITTEES THAT SHOULD HELP REDUCE BOTH THE SPECIAL INTERESTDRIVEN PARALYSIS AND THE PREVAILING LET'SDOITTHISWAYBECAUSETHAT'STHEWAYWE'VEALWAYSDONEIT SYNDROME MR COELHO WORRIES LESS ABOUT TOO MUCH POWER SHIFTING TO CONGRESS NOTING THAT THESE EXECUTIVELEGISLATIVE BALANCEOFPOWER EQUATIONS INVARIABLY GO IN CYCLES HE DOES HOWEVER SUPPORT A MODIFIED LINEITEM VETO FOR TAXES AS WELL AS SPENDING TO GIVE THE PRESIDENT MORE LEVERAGE ON BUDGETARY MATTERS REFORM CAMPAIGN FINANCING SO LEGISLATORS DEAL MORE WITH SUBSTANTIVE ISSUES AND LESS WITH RAISING CAMPAIGN MONEY IN AMERICAN POLITICS THERE HASN'T BEEN A BETTER POLITICAL FUNDRAISER THAN TONY COELHO NOBODY KNOWS BETTER WHAT A DEBILITATING PROCESS IT IS THE PROBLEM IS NOT SO MUCH THAT CONTRIBUTORS THINK THEY OWN YOU OR INDUSTRIES CONTROL YOU ALTHOUGH THERE ARE EXAMPLES OF THAT MY CONCERN IS THE AMOUNT OF TIME IT TAKES FOR INDIVIDUALS TO RAISE MONEY I HAD A VERY CLOSE FRIEND IN THE SENATE WHO TOLD ME THAT IN THE TWO YEARS PRIOR TO REELECTION HE SPENDS AS MUCH AS 70 OF HIS TIME RAISING MONEY THAT MEANS HE ONLY SPENDS 30 OF HIS TIME ON THE COUNTRY'S PROBLEMS THERE HAS BEEN A REAL ARMS RACE IN SPENDING ON CONGRESSIONAL CAMPAIGNS SOARING FIVEFOLD FROM 99 MILLION IN 1976 TO 5266 MILLION LAST TIME MR COELHO WOULD PLACE A STRICT CAP ON OVERALL SPENDING HIGH ENOUGH NOT TO DISADVANTAGE CHALLENGERS REQUIRE FULL DISCLOSURE OF ALL CONTRIBUTIONS AND PROVIDE PARTIAL PUBLIC FINANCING HE WOULD REQUIRE THAT A SIGNIFICANT AMOUNT OF A CANDIDATE'S OVERALL MONEY COME FROM THAT PARTICULAR DISTRICT OR STATE TOTAL PUBLIC FINANCING AS IN PRESIDENTIAL GENERAL ELECTIONS IS DESIRABLE BUT MR COELHO DOUBTS THERE'S SUFFICIENT PUBLIC SUPPORT BUT HE SUGGESTS MORE THAN A FEW MEMBERS USE PUBLIC OPPOSITION AS AN EXCUSE TO OPPOSE EVEN PARTIAL PUBLIC FINANCING THEY DON'T WANT A COMPETITIVE RACE AND PUBLIC FINANCING WOULD CREATE MORE COMPETITIVE RACES AND THE MAN WHO ASSEMBLED THE DEMOCRAT'S MOST EFFECTIVE FUNDRAISING MACHINE IN THE 1980S KNOWS HE HELPED CREATE A MONSTER CAMPAIGNS HAVE NOW BECOME A FULLTIME BUSINESS YOU SET UP THE MECHANISM TO HAVE FULLTIME POLLSTERS FULLTIME MEDIA PEOPLE AND OTHERS THEY ARE ENGAGED YEARROUND THAT MEANS YOU RAISE ENOUGH MONEY TO PAY THEM ALL YEAR THE CYCLE JUST GOES ON AND ON ALSO IT'S LIKE HEALTH CARE IN THAT EVERY NEW FANDANGLE THING THAT COMES ALONG POLITICALLY YOUR CONSULTANT WANTS TO TRY YOU DON'T NEED IT BUT YOU'RE AFRAID THE OTHER SIDE WILL HAVE IT AND IT JUST KEEPS DRIVING COSTS UP SEE RELATED LETTER LETTERS TO THE EDITOR WELCOME TO THE FIGHT TONY NOW WE'LL WIN WSJ FEB 15 1994 9402030091 YY94 MM02 9402150056 940215 LETTERS TO THE EDITOR WELCOME TO THE FIGHT TONY NOW WE'LL WIN I FOUND AL HUNT'S FEB 3 POLITICS & PEOPLE COELHO ON CONGRESSIONAL REFORM AMUSING AND A LITTLE BIT IRONIC I AM TEMPTED TO SAY AS VICTOR LASZLO SAID TO RICK IN CASABLANCA WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN BUT TONY COELHO HAS NEVER BEEN A DISINTERESTED BYSTANDER IN THE BATTLE FOR TRUE CONGRESSIONAL REFORM IN MY VIEW HE HAS BEEN ON THE OTHER SIDE OF THE DEBATE WORKING TO PRESERVE THE STATUS QUO UNDER THE DEMOCRATIC MAJORITY AS MAJORITY WHIP HE WORKED TO STRENGTHEN THE DEMOCRATS' GRIP ON THE HOUSE SKILLFULLY MANIPULATING VOTES TO INSURE THAT POLITICS WON OUT OVER POLICY HE ALSO REVOLUTIONIZED THE WAY SPECIAL INTERESTS PLAYED A PART IN DEBATES MAKING CERTAIN THAT NO VOTE CAME WITHOUT A PRICE THIS IS WHERE REFORM SHOULD START HE ADVOCATES A TERM LIMIT ON CONGRESSIONAL COMMITTEES REPUBLICANS AGREE WITH THE CONCEPT OF TERM LIMITS FOR SENIOR MEMBERS ON COMMITTEES WHICH IS WHY WE MADE A RULES CHANGE TO THAT EFFECT IN OUR OWN CONFERENCE RULES REGRETTABLY MR COELHO'S FORMER COLLEAGUES IN THE DEMOCRATIC LEADERSHIP HAVE RESISTED OUR EFFORTS TO GET THIS REFORM IMPLEMENTED IN THE HOUSE HIS LEADERSHIP COLLEAGUES ALSO RESISTED MY EFFORT TO INCLUDE TAX BILLS FOR THE LINEITEM VETO ANOTHER REFORM ADVOCATED BY MR COELHO BY ALLOWING THE PRESIDENT TO STRIP OUT SPECIALINTEREST TAX LOOPHOLES AS WELL AS SPECIALINTEREST APPROPRIATIONS THE FIRST STEPS TO FISCAL SANITY COULD BE TAKEN UNFORTUNATELY MY AMENDMENT THAT PASSED THE HOUSE OVERWHELMINGLY WAS SNUFFED OUT BY THE HOUSE LEADERSHIP WITH A TECHNICAL PROCEDURAL MANEUVER MR COELHO SAYS HE BELIEVES CONGRESS SHOULD BE REORGANIZED AUTOMATICALLY EVERY DECADE THAT'S NOT A BAD IDEA BUT SURELY MR COELHO KNOWS THE BIGGEST OBSTACLE TO REFORM COMES WITH HIS FORMER COLLEAGUES IN THE HOUSE DEMOCRATIC LEADERSHIP AS OUR EXPERIENCE WITH THE JOINT COMMITTEE ON THE ORGANIZATION OF THE CONGRESS PROVED FINALLY HE BELIEVES THAT THE CAMPAIGN FINANCING SYSTEM SHOULD BE OVERHAULED TO GIVE LEGISLATORS A BREAK FROM FUND RAISING COMING FROM THE MAN WHO HAD MORE TO DO WITH THE CURRENT SYSTEM THAN ANYONE ELSE THIS IS QUITE AN ADMISSION REPUBLICANS HAVE A COMPREHENSIVE CAMPAIGN FINANCE REFORM PACKAGE THAT BANS PACS BANS SOFT MONEY AND REQUIRES THAT MOST OF A CANDIDATE'S FUNDS COME FROM THE DISTRICT WHEN MR COELHO ENDORSES OUR PLAN I KNOW HE WILL BE SERIOUS MAYBE TONY COELHO HAS CHANGED MAYBE HE NOW REALLY BELIEVES THAT REPUBLICANS HAVE BEEN RIGHT ALL ALONG IN THAT CASE I WOULD SAY WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN 9402150055 940215 INTERNATIONAL BRITISH AIRPORT TRAFFIC LONDON UK AIRPORT ADMINISTRATOR BAA PLC SAID TRAFFIC AT ITS SEVEN AIRPORTS ROSE 54 IN JANUARY FROM A YEAR EARLIER TO 56 MILLION PASSENGERS STANSTED AIRPORT RECORDED 20 GROWTH HEATHROW WAS UP 71 AND GATWICK WAS UNCHANGED FROM A YEAR EARLIER 9402150054 940215 LETTERS TO THE EDITOR QUAKE MAGNITUDES YOUR JAN 18 ARTICLE EXPECTED BIG ONE' HASN'T ARRIVED YET ABOUT THE LOS ANGELES EARTHQUAKE HAS AN ARITHMETIC FLAW THE ARTICLE ACKNOWLEDGES THE EARTHQUAKE AS BEING 66 ON THE RICHTER SCALE WHICH IS A LOGARITHMIC SCALE TO THE BASE 10 THE 1992 EARTHQUAKE IN SOUTHERN CALIFORNIA WAS ACCORDING TO THE ARTICLE ONLY 75 MAGNITUDE WHILE THIS IS A RESPECTABLE MAGNITUDE IT IS ONLY EIGHT TIMES LARGER RATHER THAN THE 30 TIMES LARGER STATED IN THE ARTICLE BY COMPARISON THE 83 SAN FRANCISCO 1906 EARTHQUAKE WAS 50 TIMES LARGER THAN THE ONE WE HAD HERE JAN 17 9402150052 940215 BUSINESS WORLD US SKI MAKERS LOST THEIR EDGE BY TIM W FERGUSON PART OF THE CBS OLYMPIC BROADCASTING TEAM IN LILLEHAMMER HANK KASHIWA IS BACK AMID THE EUROPEANLED INTERNATIONAL SKI FRATERNITY HE EARNED HIS BID AS A WORLDCLASS RACER FOR MORE THAN A DECADE INCLUDING A SPOT ON THE US TEAM AT THE 1972 WINTER GAMES IN HIS DAY JOB AS PRESIDENT OF VOLANT SKI CORP IN BOULDER COLO HOWEVER MR KASHIWA IS RATHER OUTSIDE THE FOLD HIS IS A NICHE EQUIPMENT MAKER JUST AS AMERICANS GENERALLY HAVE BECOME MORE PERIPHERAL TO SKI MANUFACTURING WHEN A US CONSUMER BUYS DOWNHILL SKIS ODDS ARE NEARLY 3 TO 1 HE'LL GET A EUROPEAN IMPORT CROSSCOUNTRY SKIS ALMOST CERTAINLY COME FROM ACROSS THE ATLANTIC THE SAME WITH BOOTS AND BINDINGS THE LINK BETWEEN SKIER AND SLATS THE MAJOR REMAINING EXCEPTION TO THIS RULE IS K2 CORP IN VASHON WASH ON AN ISLAND IN PUGET SOUND BUT EVEN K2'S DOWNHILL SKIS WHICH IT SAYS HAVE 20 OF THE US MARKET AND 10 WORLDWIDE DRAW NEARLY HALF THEIR COMPONENT VALUE FROM ABROAD THE MATERIALS BASE FOR THE HARD GOODS IN SKIING IS MAINLY OVERSEAS IN EUROPE PRIMARILY AND IN JAPAN WHICH EQUIPS ITS HOME MARKET AND DOES LITTLE EXPORTING IN THIS INDUSTRY THERE'S NOTHING WRONG HERE MANUFACTURING IS A GLOBAL ENTERPRISE AND SKIERS ARE ENTITLED TO THE BEST BUY BUT WHY IS RENEWED AMERICAN INDUSTRIAL PROWESS NOT SO EVIDENT IN THIS 5 BILLION INTERNATIONAL SECTOR SKIING IS A SPECIAL CASE IT TURNS OUT BUT A WORLD OF MORE STABLE CURRENCIES MIGHT CHANGE THINGS SKIING IS DIFFERENT FIRST OF ALL BECAUSE THE US MARKET IS NOT THE DRIVER THAT IT IS IN MOST CONSUMER GOODS ONLY 5 TO 10 OF AMERICANS SKI REGULARLY LESS THAN IN ANY MAJOR INDUSTRIALIZED NATION EXCEPT BRITAIN THIS MEANS THAT EVEN AT MORE THAN A MILLION SKI SETS SOLD ANNUALLY THE US PACKS BARELY HALF THE PUNCH OF JAPAN AND MAYBE A THIRD THAT OF EUROPE WITH ITS ORIGINS IN THE ALPS DOWNHILL AND THE NORDIC COUNTRIES CROSSCOUNTRY AND ITS NETWORKS OF CRAFTSMEN DOWN TO THE BUCKLES ON THE BOOTS CENTERED ON THE CONTINENT THE SPORT HAS GOOD REASON FOR CONGREGATING COMMERCIALLY IN EUROPE HOWEVER THE US INDUSTRY ENJOYED A SIZABLE OPENING FROM WORLD WAR II TILL THE EARLY 1970S DURING WHICH TIME IT INTRODUCED THE METAL SKI AND LATER THE HARDPLASTIC BOOT HOWARD HEAD'S SKI COMPANY IN TIMONIUM MD WAS A MAJOR PLAYER BUT HIS NAMESAKE BRAND AND OTHER ONETIME US PRODUCTS INCLUDING LANGE BOOTS ARE NOW MADE IN EUROPE OR IN THE CASE OF ONCEPOPULAR HEXCEL SKIS NOT AT ALL PERFORMANCE SKIING SUCH AS AT THE OLYMPICS IS NEARLY ENTIRELY A EUROPEAN EXPO AMERICAN TOMMY MOE WON HIS DOWNHILL GOLD MEDAL THIS WEEK ON SKIS FROM DYNASTAR OF FRANCE EVEN AT THE RECREATIONAL END OF THE MARKET HOWEVER THE US HAS RETREATED WITH ITS SUPPLIER BASE BUT PRODUCTION SITING DOESN'T JUST REFLECT PHYSICAL IMPERATIVES DAVID CURRIER AN OLYMPIC TEAMMATE OF MR KASHIWA'S AND NOW MARKETING DIRECTOR AT VOLANT OBSERVES THAT THE SPORT AND THE INDUSTRY ARE LACED WITH SOCIAL TIES THAT EXTEND INTO THE DISTRIBUTION AND SALES ARMS CRACKING THAT EUROCENTERED COMPLEX IS SOMETHING EVEN THE JAPANESE HAVE NOT TRIED VOLANT IS ATTEMPTING TO CAPTURE ATTENTION WITH A STAINLESS STEEL SKI THAT IT CLAIMS BOOSTS PERFORMANCE MR KASHIWA'S BROTHER A LOS ALAMOS NATIONAL LABORATORY ENGINEER WHO ONCE WORKED AT K2 DEVELOPED THE SKI AND VOLANT GOT OFF THE GROUND IN THE LATE 1980S WITH CAPITAL FROM MIKE MARKKULA ITS CHAIRMAN AND OTHER SILICON VALLEY EXECUTIVES IT HAS YET TO TURN A PROFIT BUT HANK KASHIWA SAYS THAT CAN BE DONE NEXT YEAR WITH SALES REACHING 35000 TO 45000 ADDING I BETTER EVEN AT THAT TARGET LEVEL VOLANT WOULDN'T BE NOTICED ON MANY LIFTS BY CONTRAST PRODUCTION AT K2'S VASHON ISLAND FACILITIES WHERE PARENT ANTHONY INDUSTRIES ALSO PUTS OUT THE SMALLER OLIN AND PRE LINES IS ESTIMATED TO HIT 400000 A YEAR WITH MORE THAN 700 EMPLOYEES K2 TRAILS ONLY FRENCHBASED ROSSIGNOL IN POPULARITY ON THE US SLOPES TIM PETRICK K2'S GENERAL MANAGER ALSO TOUTS THE COMPANY'S INROADS INTO JAPAN WHERE THE JAZZIER AMERICAN SKI IMAGE HELPED IT TO DOUBLE SALES IN FOUR YEARS TO NEARLY 100000 PAIRS THE GAINS CAME AFTER A FIGHT OVER ACCESS AND IN FACT K2 HAS BENEFITED FROM A US GOVERNMENTFUNDED TRADE ADJUSTMENT ASSISTANCE CENTER IN THE NORTHWEST WHILE ACCENTING THE DEGREE OF HAND CRAFTSMANSHIP IN ITS ASSEMBLY K2 HAS BEEN ABLE TO KEEP COSTS DOWN WELL BELOW WHAT OLIN EXPERIENCED AT ITS PRIOR CONNECTICUT LOCATION SAYS MR PETRICK WHO WAS IN CHARGE OF RELOCATING THAT DIVISION BUT THE ESSENCE OF MASS SKIMAKING MAY BE IN MACHINERY SUCH AS AT THE 35 MILLION CAPPEDSKI PLANT ROSSIGNOL OPENED IN FRANCE IN LATE 1992 AND INVESTMENT CAPITAL IS BOUND TO BE ATTRACTED BY EUROPE'S EXISTING INFRASTRUCTURE CAPPED SKIS WHICH ENCASE A USUALLY WOOD OR FOAM CORE IN HARD PLASTICS CAN BE MORE EFFICIENT TO MAKE THAN TRADITIONAL LAMINATED SKIS VOLANT'S TWIST IS TO RETURN TO LIGHTWEIGHT METAL FOR ITS CAPS K2 AND OTHER MAKERS USE FIBERGLASS SURFACES THAT BETTER LEND THEMSELVES TO THE STRIKING COLORS THAT CHARACTERIZE TODAY'S SKIS IT'S OFTEN HARD TO SEPARATE FAD FROM FACT IN SKI TECHNOLOGY THE TRUTH PROBABLY IS THAT ONLY SKILLED RECREATIONAL SKIERS NOTICE MUCH DIFFERENCE ON THE MOUNTAIN LIKE MANY OTHERS SKI PRODUCTS SELL AS MUCH ON SIZZLE AS ON STEAK THAT MEANS AMERICAN MAKERS CAN BEAT THE JAPANESE BUT THE MAJOR EUROPEAN LINES WHICH NEARLY ALL HAVE US MARKETING ARMS HAVE LEARNED TO BEST BOTH CURRENCY COUNTS TOO WAS IT A COINCIDENCE THAT THE US SKI INDUSTRY WAS ROUTED TO ITS VASHON ISLAND BULWARK DURING THE GREAT MONETARY UPHEAVALS TODAY EVEN K2 UTILIZES PRODUCTION IN NORWAY NEAR LILLEHAMMER TO SERVE ITS OVERSEAS MARKETS INCLUDING JAPAN WITH LESS EXCHANGERATE RISK THAN A DOLLARBASED PRODUCT EVEN IN SNOWBOARDING THE YOUTHCENTERED CROSS BETWEEN SURFING AND SKIING THAT WAS AN AMERICAN IDEA AND NOW ACCOUNTS FOR MORE THAN 10 OF THE SKI TRADE CURRENCIES ARE A FACTOR BURTON SNOWBOARDS OF BURLINGTON VT THE DOMINANT NAME IN THAT SUBMARKET RELIES ON AN AUSTRIAN PLANT FOR MUCH OF ITS OUTPUT ALTHOUGH THE PRIVATELY HELD COMPANY REPORTS IT STILL IS MOSTLY A USCANADIAN PRODUCER IN BOTH THE RADICAL CULTURE OF SNOWBOARDING AND IN THE INCREASINGLY MATURE MARKET FOR DOWNHILL SKIING THERE MAY BE HOPE FOR A DECENT US BASE IN THE SPORT SNOWBOARD SHREDDERS HAVE THEIR CULT HEROES BUT BASICALLY REBEL AGAINST TOO MUCH MANIPULATION IN THE ALPINE SEGMENT MEANWHILE EUROPEAN BRAND ASSOCIATION WITH THE WORLD'S GREAT SKI RACERS MAY NO LONGER BE SUCH A TRUMP CAN AMERICAN BABY BOOMERS FATHOM HOW THEIR NEEDS ON THE SLOPES RELATE TO TOMBA ON TV THE OLYMPICS ARE A BOON TO THE BUSINESS NO QUESTION BUT IN THE FUTURE SALES MAY INCREASINGLY HINGE ON OFFERING THE AVERAGE SKIER RELIABLE TURNS STABILITY AND GOOD VALUE MANUFACTURERS STRUGGLING TO ANSWER THAT CALL MIGHT ASK AS MUCH OF MONETARY AUTHORITIES 9402150051 940215 PEPPERAND SALT POSITION TO BE I OFTEN QUOTE ME ARE SAD TO FIND THAT NOW IT'S IN WHEN YOU CAN'T TELL WHOM FROM WHO 9402150050 940215 TECHNOLOGY BRIEF HEWLETTPACKARD CO NEW LIGHTS MIGHT REPLACE THE INCANDESCENT LAMP HEWLETTPACKARD CO PALO ALTO CALIF SAID IT MAY HAVE DEVELOPED A PRACTICAL ALTERNATIVE TO INCANDESCENT LAMPS THE ADVANCE WHICH DEPENDS ON A NEW TECHNIQUE THAT MAKES POSSIBLE THE WORLD'S BRIGHTEST LIGHTEMITTING DIODES COULD TURN UP IN AUTOMOBILE TAILLIGHTS WITHIN TWO TO THREE YEARS THE COMPANY SAID LIGHTEMITTING DIODES FORM THE BASIS FOR VARIOUS THIN ELECTRONIC SCREENS THEIR LACK OF BRIGHTNESS HAS HAMPERED THEIR USE IN THE PAST BUT HEWLETTPACKARD SAID ITS LIGHTEMITTING DIODES ARE AS MUCH AS FOUR TIMES BRIGHTER THAN THOSE FROM RIVALS THE COMPANY DECLINED TO FORECAST THE SIZE OF THE MARKET FOR THESE NEW LIGHTS BUT A SPOKESMAN SAID THE TECHNOLOGY COULD REPLACE INCANDESCENT LAMPS IN MANY SITUATIONS INCLUDING TRAFFIC LIGHTS THE COMPANY SAID IT WILL BEGIN SELLING SAMPLE QUANTITIES OF THE LIGHTS AT MIDYEAR 9402150049 940215 HEARD ON THE STREET HILLS STORES ON REBOUND FROM BANKRUPTCY HAS SOME BIG FANS GOBBLING UP LISTLESS STOCK BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW RECEIVED WISDOM ABOUT INVESTING IN BANKRUPTCIES IS THAT IF YOU GET A CHANCE TO PLAY YOU CAN BET THE JUICE IS GONE BY THAT TIME EXECUTIVES OF STRAPPED COMPANIES ALREADY HAVE INDUCED WORKOUTS FAVORABLE TO THEM AND THEIR ALLIES ONLY WHEN THE STOCKS ARE IN FRIENDLY HANDS DO THEY SOAR PHOENIXLIKE INTO THE MARKET EXPLAIN THEN PLEASE THE BEHAVIOR OF HILLS STORES WHICH WAS KNOWN BEFORE ITS FEBRUARY 1991 BANKRUPTCYCOURT FILING AS HILLS DEPARTMENT STORES THE CANTON MASSBASED RETAILER WHICH OPERATES DISCOUNT DEPARTMENT STORES IN SMALL NORTHEASTERN TOWNS HAS BEEN BACK ON ITS FEET SINCE OCTOBER WHEN IT EMERGED FROM BANKRUPTCYLAW PROCEEDINGS BY ALL ACCOUNTS THE COMPANY IS SET TO DELIVER STELLAR FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED JAN 29 YET THE STOCK CAN'T GET OFF THE GROUND IT'S LANGUISHING AT 19 3/8 A WHISKER SHY OF ITS 20 STATED VALUE IN THE WORKOUT PLAN AT THAT PRICE IT LOOKS DOWNRIGHT CHEAP TO SOME INVESTORS LEHMAN BROTHERS THE NEW YORK INVESTMENT BANK RECENTLY SNAPPED UP AN 81 STAKE IN HILLS STORES FROM WESTINGHOUSE CREDIT CORP OF PITTSBURGH A LENDER TO THE RETAILER'S ILLFATED 1985 LEVERAGED BUYOUT MEANWHILE FIDELITY INVESTMENTS THE BIG BOSTON MUTUALFUND GROUP DOUBLED ITS HOLDINGS EARLIER THIS YEAR TO ABOUT 16 OF SHARES OUTSTANDING BY BUYING MOST OF THE HOLDINGS OF APOLLO ADVISORS A NEW YORK VULTURE INVESTOR IN THE BANKRUPTCY WHAT LURES THESE SAVVY INVESTORS IS CASH FLOW AND HILLS HAS PLENTY OF IT CASH FLOW OR THE AMOUNT OF CASH THE BUSINESS GENERATES AFTER OPERATING EXPENSES BUT BEFORE SUCH EXPENSES AS INTEREST PAYMENTS TAXES AND DEPRECIATION OFTEN IS A BETTER GAUGE OF A REORGANIZED COMPANY'S PROSPECTS THAN ITS EARNINGS LARGE LOSSES AND OTHER CHARGES CAN SKEW REPORTED EARNINGS SAYS JEFFREY WIEGAND OF ROBOTTI & ENG A NEW YORK FIRM EXPERT IN SPECIALSITUATION INVESTING OFTEN THE BALANCE SHEET HAS BEEN RESTATED SO THAT BOOK VALUE IS MEANINGLESS ADDS MR WIEGAND WHO TRACKS STOCKS OF FORMER BANKRUPTCY WARDS THESE DAYS HILLS' STOCK IS TRADING AT FOUR TIMES THE 135 MILLION OR SO IN CASH FLOW IT GENERATED IN THE PAST FISCAL YEAR THAT'S CHEAPER THAN CURRENT MULTIPLES OF COMPARABLE DISCOUNTERS SUCH AS CALDOR OR BRADLEES WHICH HAVEN'T HAD THE CHANCE TO REVAMP THEMSELVES UNDER THE GENEROUS SHELTER OF BANKRUPTCY AND IT'S A STEAL COMPARED TO WHAT INVESTORS ARE PAYING TO BET ON RETAILERS STILL IN BANKRUPTCY COURT FOR INSTANCE WHILE SHARES OF RH MACY DON'T TRADE PUBLICLY ITS JUNK BONDS DO AND THEY'VE BEEN BID UP TO A LOFTY 13 TIMES ITS CURRENT CASH FLOW AND SEVEN TIMES NEXT YEAR'S OPTIMISTIC PROJECTIONS BUT RETAILERS CANNOT LIVE BY CASH FLOW ALONE ESPECIALLY DISCOUNTERS FACING THE LIKES OF WALMART THAT'S BEEN THE HURDLE FACING HILLS WALMART HAS BEEN STEADILY ENCROACHING ON THE DISCOUNTER'S TERRAIN ESPECIALLY IN PENNSYLVANIA WHERE HILLS ONCE RULED PRACTICALLY UNCHALLENGED STEAMROLLED BY THE ARKANSAS JUGGERNAUT DURING THE PAST RECESSION THE COMPANY'S LOSS WIDENED TO 2737 MILLION IN 1991 TO HELP HILLS STAGE A COMEBACK CREDITORS SWEPT OUT MANAGEMENT AND BROUGHT IN A NEW TEAM LED BY MICHAEL BOZIC FORMER HEAD OF SEARS MERCHANDISE GROUP A MAIN DIVISION OF THE CHICAGO RETAILER EVEN THOUGH HILLS STILL WAS MIRED IN BANKRUPTCY COURT HE SET TO WORK ON AN AMBITIOUS REMODELING EFFORT DESPITE HOWLS FROM ANXIOUS CREDITORS THOSE HOWLS HAVE SINCE MUTED INTO CONTENTED PURRS AND NO WONDER HILLS MANAGEMENT OVERHAULED ITS BLAND STORES ACCORDING TO WHAT MANAGEMENT CALLS A WALMART FORMULAAND SO FAR THE STRATEGY HAS WORKED SALES AT STORES OPEN MORE THAN A YEAR THE YARDSTICK BY WHICH RETAILERS MEASURE PERFORMANCE ROSE A BUOYANT 102 IN DECEMBER FROM A YEAR AGO AND EVEN STORES PITTED DIRECTLY AGAINST WALMART MANAGED TO EKE OUT 7 SALES GROWTH GONE ARE HILLS'S ARBITRARY CLUSTERS OF CLOTHING ITS MASSES OF DISCOUNTED BRAND GOODS INSTEAD THE REMODELED STORES LURE THE COMPANY'S PREDOMINANTLY FEMALE SHOPPERS WITH BARGAINPRICED HEALTH AND BEAUTY AIDS AND NEW STREAMLINED AISLES AT THE CENTER OF THOSE STORES ARE RESPLENDENT WITH DISCOUNTED CLOTHES WHICH ACCOUNT FOR A LARGE PART OF SALES MR BOZIC EMBOLDENED BY HIS SUCCESS HAS EVEN BEEN EXPANDING HILLS'S PRIVATE LABEL AMERICAN SPIRIT WHICH NOW ENCOMPASSES NOT ONLY APPAREL BUT BATH ACCESSORIES AND GARBAGE PAILS HOWEVER THE FACELIFT HASN'T COME CHEAP IT HAS COST HILLS ABOUT 75 MILLION SO FAR TO REDO HALF ITS STORES ABOUT 700000 PER SITE BUT IT'S BEEN THE PERFECT DEFENSIVE STRATEGY AGAINST WALMART SAYS ONE HAPPY SHAREHOLDER ONE WORD OF CAUTION HILLS ISN'T FOR THE FAINTHEARTED THE STOCK REMAINS NEGLECTED BY MOST WALL STREET ANALYSTS AND VOLUME IS VERY THIN WHILE THAT ADDS TO ITS ATTRACTIVENESS FOR SOME IT MEANS INVESTORS SHOULD BE PREPARED TO HOLD FOR THE LONGTERM RATHER THAN GO FOR A QUICK PROFIT 9402150048 940215 SOME THOUGHTS FROM A MISSOURI FARM BY BLAKE HURST THE DREAM OF OWNING A HOME PLACE IS ONE SHARED BY ALL YOUNG FARMERS MY WIFE AND I REALIZED OUR DREAM IN 1983 WHEN WE BOUGHT OUR 220 ACRES WE'VE RAISED A LOT OF CORN AND SOYBEANS THREE WONDERFUL CHILDREN AND STARTED A SMALL SIDE BUSINESS HERE IT'S BEEN A GREAT HOME BUT AS AN INVESTMENT IT'S BEEN LOUSY FARMLAND WAS A GOOD INVESTMENT FOR A GENERATION HERE IN NORTHWEST MISSOURI LAND VALUES QUINTUPLED IN THE 20 YEARS FROM 1960 TO 1980 THEN PAUL VOLCKER PUT AN END TO THE FUN THE HIGH INTERESTRATE POLICIES OF THE FED IN THE EARLY '80S WERE SUCCESSFUL IN THE FIGHT AGAINST INFLATION THE FIRST CASUALTY WAS THE INFLATED LAND VALUES OF THE LATE '70S FARMLAND IN MANY AREAS LOST HALF ITS VALUE AND THE FARM CRISIS OF THE EARLY '80S WAS THE RESULT THE LAND PRICE INFLATION OF THE '70S HAD ITS ROOTS INSIDE AND OUTSIDE AGRICULTURE DEMAND FOR FARM PRODUCTS INCREASED BECAUSE OF DETENTE AND CROP FAILURES WORLDWIDE WE ENDURED DROUGHTS AND OTHER PRODUCTION PROBLEMS DOMESTICALLY THAT INCREASED COMMODITY PRICES MOST IMPORTANT REAL INTEREST RATES WERE NEGATIVE CREDIT TO FARMERS WAS SUBSIDIZED AND FARMLAND WAS SEEN AS THE PERFECT INFLATION HEDGE AFTER THE BOTTOM DROPPED OUT OF THE MARKET AND A WHOLE GENERATION OF FARMERS HAD TO SEEK EMPLOYMENT ELSEWHERE A MORE SOBER APPROACH TO REAL ESTATE VALUATION PREVAILED FARM INCOMES STABILIZED BUT FARMLAND PRICES DID NOT RECOVER NOW THE FACTORS THAT KEPT FARMLAND PRICES LOW FOR A DECADE ARE BEGINNING TO CHANGE AND FARM REAL ESTATE MAY YET AGAIN BECOME A FAVORITE LAST FALL HOWEVER IN ANOTHER OBSTACLE TO A TURNAROUND THE CLINTON ADMINISTRATION DELIVERED A BLOW TO FARMERS IN THE MIDWEST WITH THE ANNOUNCEMENT THAT PUBLIC MONEY WOULD NOT BE AVAILABLE TO REPAIR ALL THE LEVEES DAMAGED BY FLOODS MANY ENVIRONMENTALISTS APPLAUDED WITH VISIONS OF A MASSIVE WETLAND STRETCHING ACROSS MISSOURI BY DECEMBER FEWER THAN 10 OF THE SEVERAL HUNDRED DAMAGED LEVEES HAD BEEN REPAIRED LEAVING SOME 480000 ACRES VULNERABLE TO FUTURE FLOODS IRONICALLY WHILE FUNDS TO REPAIR LEVEES ARE LIMITED THERE SEEMS TO BE NO LIMIT ON FUNDS FOR THE WETLANDS RESERVE PROGRAM AND MANY FARMERS WITH SEVERE FLOOD DAMAGE ARE SIGNING CONTRACTS WITH THE FEDERAL GOVERNMENT TO TAKE THEIR LAND OUT OF PRODUCTION PERMANENTLY AT THE SAME TIME FARMERS IN CALIFORNIA LAST YEAR LOST A CONSIDERABLE PORTION OF THEIR IRRIGATION WATER RIGHTS 125 MILLION ACREFEET OF WATER AS FEDERAL AUTHORITIES ACTED TO PROTECT FISH WILDLIFE AND WETLANDS OTHER FARMERS ARE NOW ABLE TO SELL WATER RIGHTS FOR USES MORE VALUABLE THAN AGRICULTURE DANIEL BEARD THE NEW COMMISSIONER OF THE FEDERAL BUREAU OF RECLAMATION UNFORTUNATELY HAS SIGNALED HIS WILLINGNESS TO LISTEN SYMPATHETICALLY TO PLANS TO DIVERT IRRIGATION WATER AWAY FROM FARMERS AND TOWARD OTHER USES HE SAYS THAT FARMERS CAN EXPECT TO PAY MORE FOR LESS WATER AS MORE EMPHASIS IS PUT ON THE NEEDS OF CITIES AND ENDANGERED SPECIES BECAUSE THE ENDANGERED SPECIES ACT PROTECTS THE HABITATS OF VARIOUS LISTED SPECIES FARMERS FIND THAT WHAT THEY ONCE CONSIDERED SIMPLY A CORNFIELD IS NOW DESIGNATED A HABITAT NO LONGER AVAILABLE FOR FARMING IN THIS VEIN THE COASTAL CALIFORNIA GNATCATCHER THE REDCOCKADED WOODPECKER AND THE DESERT TORTOISE ITS 66 MILLIONACRE HABITAT COULD LIMIT CATTLE GRAZING OVER AREAS IN SEVERAL STATES ARE AS LIKELY TO BE DISCUSSED DOWN AT THE LOCAL COFFEE SHOP AS IS THE NEWEST JOHN DEERE MACHINERY OR HYBRID CORN NOW CONGRESS IS DEBATING A BILL TO FUND A NATIONWIDE BIOLOGICAL SURVEY TO LIST ALL BIOLOGICAL RESOURCES ON BOTH PUBLIC AND PRIVATE LANDS NO DOUBT MORE THREATENED SPECIES WILL BE FOUND MAKING LESS LAND AVAILABLE FOR PRODUCTION FARMERS EVERYWHERE FACE MORE REGULATION AS THEY ATTEMPT TO USE THE TECHNOLOGY THAT HAS SO DRAMATICALLY INCREASED YIELDS IN THE PAST IN SEVERAL WATERSHEDS WHERE NITRATES ARE A PROBLEM FARMERS MUST LIMIT THEIR USE OF FERTILIZER THE CLINTON ADMINISTRATION HAS ANNOUNCED A POLICY WHEREBY THE BENEFITS OF PESTICIDES WON'T BE CONSIDERED DURING A PRODUCT'S APPROVAL PROCESS PESTICIDES WITH EVEN NEGLIGIBLE RISK MUST BE WITHDRAWN EXCEPT IN EXCEPTIONAL CASES THE ADMINISTRATION ALSO WANTS TO BAN THE USE OF ALL HIGH RISK PESTICIDES BY THE YEAR 2000 INTERIOR SECRETARY BRUCE BABBITT HAS BEEN INVOLVED IN A YEARLONG EFFORT TO DOUBLE GRAZING FEES ON FEDERAL LANDS COUCHED IN TERMS OF DEFICIT REDUCTION THE REAL BATTLE IS BETWEEN RANCHERS WHO WOULD UTILIZE PUBLIC LANDS AND ENVIRONMENTALISTS WHO WOULD RETURN THE LAND TO THE WILD IF THE ENVIRONMENTALISTS ARE SUCCESSFUL MUCH OF THE WEST WILL NO LONGER BE USED FOR AGRICULTURE REALESTATE BROKERS AND PEOPLE INVOLVED IN THE CATTLE INDUSTRY HERE IN MISSOURI ARE RECEIVING CALLS FROM WESTERN RANCHERS INTERESTED IN MOVING THEIR OPERATIONS TO THE MIDWEST IN CASE THEY LOSE THE RIGHT TO RANCH AS THEY HAVE FOR OVER A CENTURY THE BATTLE IS FAR FROM OVER BUT THE DIRECTION OF CHANGE IS OMINOUS MISGUIDED ENVIRONMENTAL CONCERNS WILL DECREASE THE AMOUNT OF LAND BEING FARMED AND WILL DECREASE PRODUCTION ON THE LAND REMAINING IN USE WHILE THE LAND PRICE BOOM IN THE '70S WAS FUELED BY A BIG INCREASE IN FARM EXPORTS THE EXPORT MARKET FOR AMERICAN FARMERS STUMBLED IN THE '80S AS THE COMMON MARKET CAPTURED MANY OF OUR CUSTOMERS WITH HUGE EXPORT SUBSIDIES BUT THIS SITUATION MAY CHANGE THE GENERAL AGREEMENT ON TARIFFS AND TRADE REQUIRES A 20 DROP IN EUROPEAN SUBSIDIES TO BE PHASED IN OVER SEVERAL YEARS ALONG WITH A FIRSTTIMEEVER ENTRY FOR AMERICAN RICE IN THE JAPANESE MARKET THE EXPORT PICTURE FOR OUR AGRICULTURAL PRODUCTS HASN'T BEEN THIS BRIGHT FOR A DECADE IN ADDITION THE CLINTON ADMINISTRATION'S PROGRAM CALLING FOR THE USE OF ETHANOL FUEL MADE PRIMARILY FROM CORN IN CITIES THAT ARE NOT IN COMPLIANCE WITH CLEANAIR STANDARDS WILL CREATE A HUGE DEMAND FOR CROPS THE PRICE OF GOLD IS UP AND INTEREST RATES ARE LOW ALTHOUGH INFLATION HEDGES RECENTLY HAVE BEEN OUT OF STYLE OWNING FARMLAND IS STILL DESIRABLE WITH CURRENTLY LOW INTEREST RATES AND A POSSIBLE RATE OF RETURN OF AROUND 8 FARMLAND IS IN FACT NOT A BAD INVESTMENT IN THE LATE 1800S FARMERS ALL ACROSS AMERICA LIT CANDLES IN SUPPORT OF A SPECULATOR WHO WAS ATTEMPTING TO CORNER THE MARKET IN WHEAT AND WHO WOULD THEREBY BOOST THEIR FORTUNES TODAY FARMERS ARE FEELING THE PINCH FROM AN ENVIRONMENTAL ETHOS THAT THREATENS TO FORCE MANY OUT OF BUSINESS BUT FOR THE FEW SURVIVORS THE PROSPECTS FOR AGRICULTURE HAVE NEVER BEEN BRIGHTER MAYBE WE FARMERS SHOULD BE LIGHTING CANDLES FOR THE SIERRA CLUB AND THE NATIONAL WILDLIFE FEDERATION MR HURST FARMS AND RUNS A FLOWER NURSERY IN WESTBORO MO 9402150047 940215 INTERNATIONAL BRIEF ENDESA SPAIN'S STATERUN UTILITY SAYS NET ROSE 99 IN 1993 SPAIN'S STATERUN ELECTRICITY COMPANY EMPRESA NACIONAL DE ELECTRICIDAD SA OR ENDESA SAID ITS CONSOLIDATED NET INCOME ROSE 99 IN 1993 TO 11681 BILLION PESETAS 819 MILLION FROM 10630 BILLION PESETAS IN 1992 WEAKNESS OF ELECTRICITY DEMAND IN THE FIRST 10 MONTHS OF 1993 HURT MADRIDBASED ENDESA WHICH NOTED TOTAL DEMAND IN THE SECTOR CREPT ONLY 01 HIGHER DURING THE YEAR MEANWHILE LOW HYDRAULIC PRODUCTION DUE TO THE DROUGHT THAT PARCHED MUCH OF SPAIN UNTIL THE AUTUMN OF 1993 FORCED ENDESA TO SWITCH TO MORE COSTLY COAL AND FOSSILFUEL POWERED METHODS OF PRODUCTION THE COMPANY NOTED 9402150046 940215 REVIEW & OUTLOOK EDITORIAL ARKANSAS SAMURAI MY PERSONAL TRUST AND ADMIRATION FOR PRIME MINISTER HOSOKAWA HAS ONLY INCREASED AND FOR THE GOVERNMENT BECAUSE OF POLITICAL REFORM BECAUSE JAPAN EXERCISED LEADERSHIP IN THE URUGUAY ROUND BECAUSE OF THE INITIATIVES ON CONSTRUCTION AND RICE BECAUSE OF THE FIGHT FOR TAX REFORM AND STIMULUS BECAUSE OF THE DEREGULATION EFFORT I THINK THAT JAPAN IS MOVING IN THE RIGHT DIRECTION IT COULD BE BUT I THINK THEY THE JAPANESE WOULD HAVE TO THINK LONG AND HARD ABOUT IT LET'S SEE ON THE ONE HAND THE PRESIDENT AS STATESMAN SENSIBLY SAYS HE WANTS TO SUPPORT THE FIRST TRULY REFORMIST GOVERNMENT IN RECENT JAPANESE HISTORY ON THE OTHER HAND THE PRESIDENT AS DOMESTIC POL RATTLES HIS SABER OVER SANCTIONS AND EVEN A TRADE WAR WE HOPE MR CLINTON UNDERSTANDS THAT THE LATTER COULD UNDERMINE THE GOALS OF THE FORMER WITH MORE RISKS TO THE USJAPAN RELATIONSHIP THAN APPEAR ON THE SURFACE WE SUPPOSE IT'S ALWAYS POSSIBLE THAT THERE IS SOME DEVIOUS MACHIAVELLIAN STRATEGY AT WORK HERE THOUGH WE HAVE A HARD TIME SEEING IT FOR ONE THING THE ADMINISTRATION'S FOREMOST MACHIAVELLI HAS BEEN PREOCCUPIED WITH HEALTH CARE MOREOVER IF MR CLINTON'S GOAL WAS TO FORCE JAPAN'S HAND THROUGH OUTSIDE PRESSURE IT SEEMS TO HAVE BACKFIRED PRIME MINISTER HOSOKAWA HAS SEEN HIS POPULARITY SOAR FOR REJECTING US ULTIMATUMS MORE LIKELY MR CLINTON AND HIS AIDES HAVE TRAPPED THEMSELVES INTO A POLITICAL AND DIPLOMATIC BOX CANYON THEY MARCHED INTO OFFICE VOWING TO GET TOUGH WITH JAPAN A LINE THAT GOES DOWN WELL IN DEMOCRATIC PARTY AND CERTAIN CORPORATE CIRCLES LAST SUMMER THEY HYPED AT HYPEMEISTER DAVID GERGEN'S URGING A FRAMEWORK AGREEMENT THAT WAS SUPPOSED TO BE A SEA CHANGE IN TRADE POLICY IN THE MEANTIME JAPAN'S ENTIRE WORLD CHANGED BUT THE OBLIVIOUS CLINTONITES STILL MARCH INTO THE CANYON WALL THE LOGIC OF THE NEW CLINTON POLICY WAS BASED ON THE PREMISE OF THE SOCALLED REVISIONISTS SUCH AS JAMES FALLOWS AND WHITE HOUSE CHIEF ECONOMIST LAURA TYSON THAT JAPAN NEVER CHANGES BUT OF COURSE JAPAN HAS NOW UNDERGONE A DRAMATIC IF FAR FROM COMPLETE PERESTROIKA AS PETER DRUCKER OBSERVES JAPAN INC IS DEAD OR AT LEAST DYING US INDUSTRIES THAT WERE GOING TO BE WIPED OUT BY JAPAN SEMICONDUCTERS ARE NOW ASCENDANT AND JAPAN'S ECONOMY SUPPOSEDLY INVINCIBLE HAS BEEN MIRED IN AN EXTENDED SLUMP MORE IMPORTANT THE POLITICAL CULTURE THAT WAS THE BASIS FOR JAPANESE MERCANTILISM HAS ALSO BEEN TURNED UPSIDE DOWN MR HOSOKAWA AND HIS UNSTEADY COALITION OF REFORMERS HAVE HAD TO MANAGE MORE CHANGE THAN MR CLINTON HAS EVEN CONTEMPLATED THE PRIME MINISTER HAS ALREADY BROKEN THE GERRYMANDER THAT PRODUCED THE ROTTEN BOROUGHS THAT SUPPORTED JAPAN'S CORRUPT NEXIS OF POLITICS AND BUSINESS ISN'T THIS WHAT THE US WANTS MR CLINTON'S WORDS SHOW HE UNDERSTANDS SOME OF THIS BUT HIS ACTIONS SUGGEST HE'LL KNOCK MR HOSOKAWA AROUND EVEN AS HE PRAISES HIM MR PRIME MINISTER LET US INTRODUCE YOU TO ROY VAGELOS ONE BRUITED POSSIBILITY IS TO FURTHER HAMMER THE DOLLAR AGAINST THE YEN A PRIMITIVE FORM OF MERCANTILISM THAT WILL ONLY MAKE IT MORE DIFFICULT FOR JAPAN'S EXPORT INDUSTRIES TO RECOVER THEN THERE'S THE OLD STANDBY OF IMPOSING SANCTIONS READ BORDER TAXES TO PUNISH AMERICAN CONSUMERS BECAUSE THE JAPANESE PUNISH THEIRS THIS DESPITE THE FACT THAT EVEN THE JAPANBASHING AMERICAN AUTOMAKERS ARE REPORTING RECORD PROFITS AND ALL BECAUSE THE JAPANESE DON'T WANT TO AGREE TO QUANTITATIVE AND QUALITATIVE INDICATORS FOR JUDGING TRADE FLOWS MR CLINTON'S TRADE REP MICKEY KANTOR INSISTS THESE AREN'T NUMERICAL TARGETS BUT WHATEVER YOU CALL THEM THEY SURE LOOK LIKE MANAGED TRADE WE'D ALSO ADD BY THE WAY THE MORE SUBTLE SLIGHTS OF PROTOCOL THAT THE CLINTON ADMINISTRATION SEEMS TO BE PRACTICING AGAINST JAPAN WE NOTICED THAT HILLARY RODHAM CLINTON DIDN'T THINK IT IMPORTANT ENOUGH TO BE IN TOWN TO ESCORT THE WIFE OF JAPAN'S PRIME MINISTER DURING LAST WEEK'S SUMMIT SHE APPARENTLY COULDN'T DELAY HER OLYMPIC TV EXPOSURE BY EVEN A COUPLE OF DAYS THE JAPANESE NOTICED TOO BEYOND ANY TRADE FIGHT THE BROADER DANGER HERE IS THAT THE USJAPAN RELATIONSHIP WILL FRAY AT A DELICATE TIME WITH A NUCLEAR NORTH KOREA LOBBING TEST MISSILES AT TOKYO AND WITH CHINA ON THE RISE THE LAST THING AMERICA NEEDS IS A JAPAN THAT DECIDES IT CAN'T TRUST AMERICAN FRIENDSHIP YET MR CLINTON'S POLICY IS LIKELY TO ENCOURAGE AN ANTIAMERICAN NATIONALISM THAT HAS EMERGED IN JAPANESE POLITICS IN THE PAST IT'S TRUE AS WE'VE BEEN SAYING FOR YEARS THAT JAPAN'S BUREAUCRATS STILL HAVE TOO MUCH POWER BUT THAT WON'T CHANGE BECAUSE BILL CLINTON DEMANDS IT JAPAN'S POLITICAL ECONOMY IS CHANGING BECAUSE THE JAPANESE PEOPLE ARE FORCING IT TO WHY GET IN THE WAY 9402150045 940215 BUSINESS BRIEF FMC CORP COMPANY AGREES TO ACQUIRE CATERPILLAR VEHICLE GROUP FMC CORP SAID IT HAS AGREED TO ACQUIRE THE AUTOMATEDVEHICLESYSTEMS GROUP OF CATERPILLAR INDUSTRIAL INC A MENTOR OHIO AUTOMATED GUIDEDVEHICLESYSTEMS SUPPLIER TERMS WEREN'T DISCLOSED THE CHICAGO MACHINERY AND CHEMICALS CONCERN SAID MOST OF CATERPILLAR INDUSTRIAL'S BUSINESS RELATES TO SELFGUIDED VEHICLES THAT MOVE UNIT LOADS BETWEEN WORK CENTERS OR WAREHOUSES CATERPILLAR INDUSTRIAL IS A UNIT OF CATERPILLAR INC PEORIA ILL FMC SAID THE AUTOMATEDVEHICLE GROUP WILL OPERATE AS A UNIT OF ITS ENERGY AND TRANSPORTATION EQUIPMENT GROUP'S MATERIAL HANDLING SYSTEMS DIVISION THE COMPANY SAID COMPLETION OF THE DEAL IS SUBJECT TO APPROVAL OF A DEFINITIVE AGREEMENT BY BOTH COMPANIES AND IS EXPECTED TO BE COMPLETED BY THE END OF THE FIRST QUARTER 1994 9402150044 940215 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE GREG GUMBEL SEEMS TO HAVE DISCOVERED THE SECRET OF GOOD ANCHORING KEEP A LOW PROFILE INSTEAD OF HOGGING AIR TIME MR GUMBEL IS RELATIVELY RARELY SEEN AND WHEN HE DOES APPEAR HE IS EFFECTIVE JUST CONTRAST TWO INTERVIEWS WITH DOWNHILL WINNER TOMMY MOE ON SUNDAY NIGHT MR GUMBEL'S WAS TOTHEPOINT AND INTERESTING ON MONDAY MORNING HARRY SMITH'S WAS AWKWARD AND TEDIOUS SPEAKING OF TEDIOUS CBS BROUGHT A LITTLE TASTE OF TABLOID TV TO THE GAMES BY AIRING A GARISH RECREATION OF THE NEONAZI ATTACK ON AMERICAN LUGERS LAST YEAR IN GERMANY MAKES ONE SHUDDER AT WHAT THE NETWORK COULD DO WHEN TONYA HARDING ARRIVES IN LILLEHAMMER CBS GAVE MORE AIR TIME TO THE MEN'S DOWNHILL THAN IT HAS ALLOTTED TO ALPINE EVENTS IN PAST OLYMPICS CAN IT BE THE NETWORK REALIZES FANS WANT TO SEE LOTS OF SKIING OR IS IT JUST THAT MR MOE CARRIED OFF THE GOLD CBS ALLOWED A BIT OF DRAMA ON ITS MORNING SHOW YESTERDAY BY AIRING LIVE DAN JANSEN'S LATEST OLYMPIC DISAPPOINTMENT CBS'S SUNDAY PRIMETIME AUDIENCE WAS THE LARGEST EVER FOR A SINGLE NIGHT OF OLYMPICS COVERAGE WINTER OR SUMMER AN ESTIMATED 82 MILLION PEOPLE WATCHED ALL OR PART OF THE COVERAGE CBS DREW 292 OF THE NATION'S TV HOUSEHOLDS COMPARED WITH 235 FOR THE FIRST SUNDAY NIGHT OF THE 1992 WINTER GAMES AS COMPILED BY AC NIELSEN CO IN OVERNIGHT RATINGS FROM 30 MAJOR CITIES CBS ONCE AGAIN ROUTED ITS RIVALS WITH RATINGS OF 287 TO 107 EACH FOR NBC AND ABC SCOTT HAMILTON IS AMAZING THE SKATING COMMENTATOR KNOWS HOW OTHER PEOPLE ARE FEELING SHE'S NOT FEELING ANY PAIN RIGHT NOW I GUARANTEE HE REMARKED AS ISABELLE BRASSEUR OF CANADA SKATED WITH BRUISED RIBS IN THE PAIRS COMPETITION BUT MR HAMILTON'S POWERS PALE BESIDE THOSE OF TAMARA MOSKVINA COACH OF THE GOLD MEDAL PAIRS WINNERS AT ALBERTVILLE AFTER HER SKATERS SUFFERED THROUGH A MISERABLE PRACTICE SHE ASSURED CBS CAMERAS THAT SHE WOULD HYPNOTIZE THEM BEFORE THEY SKATED SHE DECLARED THAT THE HYPNOTISM HAD WORKED AND THEY SKATED BRILLIANTLY 9402150043 940215 FOREIGN EXCHANGE DOLLAR FALLS 4 AGAINST YEN IN TRADE DISPUTE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL THE USJAPAN TRADE DISPUTE SENT THE DOLLAR PLUNGING ALMOST 4 AGAINST THE YEN TRADERS AND INVESTORS SPECULATED THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD JAPAN TO OPEN ITS MARKETS MORE EXPANSIVELY TO US GOODS FOLLOWING THE COLLAPSE OF LAST WEEK'S TRADE TALKS US OFFICIALS SAID THEY DIDN'T INTEND TO JAWBONE THE YEN HIGHER BUT TRADERS AND ANALYSTS RETORTED THAT IT DIDN'T MATTER THE US DOESN'T HAVE TO TALK THE DOLLAR DOWN THE CURRENCY MARKET IMPLICITLY BELIEVES THIS IS WHAT WASHINGTON WANTS SO THE ADMINISTRATION HAS TO JUST SIT BACK AND LET THIS HAPPEN SAID MICHAEL R ROSENBERG AN INTERNATIONAL ECONOMIST AT MERRILL LYNCH & CO IN NEW YORK ON MONDAY NIGHT ON THE HEELS OF THE DOLLAR'S SHARP FALL THE US TREASURY SAID THAT EXCHANGERATE POLICY WAS UNCHANGED THE DOLLAR SHOWED LITTLE IMMEDIATE RESPONSE IN TOKYO TRADING HOWEVER UNLESS THE MARKET COMES TO BELIEVE THAT THE ADMINISTRATION FEELS THE DOLLAR HAS FALLEN FAR ENOUGH SOME TRADERS AND ECONOMISTS PREDICTED THE US CURRENCY COULD TUMBLE BELOW 100 YEN I THINK THERE IS A GOOD POSSIBILITY THE DOLLAR COULD FALL BELOW 95 YEN SAID LAWRENCE A VEIT AN INTERNATIONAL ECONOMIST AT BROWN BROTHERS HARRIMAN & CO IN NEW YORK WE HAVE AN EXTRAORDINARY NONMEETING OF MINDS ON THE TRADE ISSUE THE JAPANESE DON'T FEEL THEY ARE RESPONSIBLE FOR THE US TRADE DEFICIT THE US FEELS THE JAPANESE ARE RESPONSIBLE BUT ANYBODY WITH EXPERIENCE IN DOING BUSINESS WITH JAPAN KNOWS THEIR MARKETS AREN'T AS OPEN TO US AS OURS ARE TO THEM HE ADDED ONE OF THE FEW LEVERS THE US CAN USE TO PUT PRESSURE ON JAPAN IS TO CAUSE THE DOLLAR TO DEPRECIATE AGAINST THE YEN IN LATE NEW YORK TRADING MONDAY THE DOLLAR WAS QUOTED AT 10265 YEN WELL BELOW 10685 YEN LATE FRIDAY THE POSTWORLD WAR II LOW WAS 10040 YEN TO THE DOLLAR SET AUG 17 SO FAR THIS YEAR THE DOLLAR IS OFF 8 AGAINST JAPAN'S CURRENCY THE DOLLAR ALSO FELL TO 17273 MARKS IN NEW YORK MONDAY FROM 17543 MARKS LATE FRIDAY ALMOST ALL MAJOR CURRENCIES ROSE AGAINST THE DOLLAR MONDAY THE POUND STRENGTHENED TO 14840 FROM 14625 BEFORE THE WEEKEND THE DOLLAR BEGAN FALLING FRIDAY AFTER TRADE TALKS IN WASHINGTON BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA COLLAPSED THE US WANTS TO REDUCE ITS HUGE TRADE DEFICIT WITH JAPAN BY SETTING SPECIFIC NUMERICAL TRADE TARGETS SOMETHING THE JAPANESE REFUSE TO DO ON MONDAY LAURA TYSON THE HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE DOLLAR'S DECLINE SHOULDN'T HAVE A SIGNIFICANT IMPACT ON US PRICES TRADERS INTERPRETED HER REMARKS AS MEANING THAT THE ADMINISTRATION HAD NO PROBLEM WITH THE US CURRENCY'S PLUNGE DURING THE NEW YORK TRADING DAY THE CLINTON ADMINISTRATION WATCHED PASSIVELY AS THE DOLLAR FELL AGAINST THE YEN IT DIDN'T SHOW UNUSUAL CONCERN THE ADMINISTRATION'S STRATEGY WAS DETERMINED TO MAINTAIN RADIO SILENCE AND NOT COMMENT ON THE YEN'S ACTIVITY A TREASURY OFFICIAL SAID ON MONDAY NIGHT IN WASHINGTON HOWEVER THE TREASURY ISSUED ITS STATEMENT HOPING TO CALM THE FOREIGNEXCHANGE MARKETS THE STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE TUESDAY OPENING OF THE TOKYO MARKETS SAID OUR EXCHANGERATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES AT MIDDAY TUESDAY IN TOKYO AFTER THE STATEMENT'S RELEASE THE DOLLAR STOOD AT 10248 YEN OFF SLIGHTLY FROM THE NEW YORK QUOTE OF 10265 YEN THE STEEPNESS OF MONDAY'S DECLINE CAUGHT THE MARKET BY SURPRISE THE BAD WEATHER IN NEW YORK PREVENTED PEOPLE FROM SELLING DOLLARS ON FRIDAY SAID JULIAN SYMMONS HEAD TRADER AT CITIBANK IN LONDON HE WARNED THAT MANY INSTITUTIONAL INVESTORS THAT HAD BEEN FUNDING THEIR PURCHASES OF FOREIGN NONJAPANESE BONDS BY BORROWING YEN AT LOW INTEREST RATES COULD BE HURT BY THE SUDDEN STEEP RISE IN JAPAN'S CURRENCY BUT THE BIGGEST DAMAGE COULD BE TO JAPAN'S ECONOMY IT'S GOING TO HURT THE JAPANESE ECONOMY PREDICTED MERRILL LYNCH'S MR ROSENBERG TRADE ADJUSTMENT IF IT'S GOING TO SUCCEED IN THE LONG RUN HAS TO CAUSE PAIN IF THERE'S NO PAIN THERE'S NO ADJUSTMENT HE ADDED THAT TO AMELIORATE THE IMPACT OF THE STRONGER YEN ON JAPAN'S ECONOMY THE COUNTRY'S CENTRAL BANK MIGHT CUT ITS KEY DISCOUNT RATE 125 OR EVEN 1 FROM ITS CURRENT 175 ANYWHERE THAT JAPAN COMPETES GLOBALLY EITHER IN JAPAN OR ABROAD THE STRONGER YEN IS GOING TO HURT JAPANESE COMPETITIVENESS SAID MR VEIT OF BROWN BROTHERS HARRIMAN IT'S GOING TO SEVERELY DAMAGE THE MANUFACTURING SECTOR REFERRING TO TOKYO'S RECENTLY ANNOUNCED 140 BILLION TO 150 BILLION PROGRAM TO STIMULATE ITS MORIBUND ECONOMY CITIBANK'S MR SYMMONS SAID ALL THE BENEFIT JAPAN HOPED TO GET VIA FISCAL STIMULUS BY PUMPING MONEY INTO THE ECONOMY IS NEGATED BY THE STRONG YEN THE MIGHTIER YEN ALSO IS DEVALUING THE PORTFOLIOS OF JAPANESE INSTITUTIONAL INVESTORS WHICH SINCE JANUARY 1986 HAVE MADE NET PURCHASES OF ABOUT 570 BILLION OF FOREIGN STOCKS AND BONDS ACCORDING TO HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC CONSULTING FIRM THAT MEANS THAT EACH ONE YEN RISE AGAINST THE DOLLAR EQUALS ROUGHLY A LOSS OF 6 BILLION TO THESE INSTITUTIONS IN THE VALUE OF THEIR FOREIGN SECURITIES HOLDINGS SAID CARL WEINBERG THE FIRM'S CHIEF ECONOMIST THUS JAPAN'S LIFEINSURANCE COMPANIES TRUST BANKS AND OTHER BIG INVESTORS HAVE SEEN THEIR PORTFOLIOS SHRINK BY MORE THAN 30 BILLION JUST SINCE THURSDAY THEORETICALLY A STRONGER YEN SHOULD EVENTUALLY HELP REDUCE JAPAN'S HUGE TRADE SURPLUS WITH THE US BY INCREASING THE COSTS OF JAPANESE PRODUCTS AND LOWERING THE PRICES OF US GOODS ESPECIALLY IN THIRD MARKETS NEITHER THE US NOR JAPAN A STRONGER YEN IS THE EQUIVALENT TO HIGHER TARIFFS ON JAPANESE EXPORTS TO THE US AND IS THE EQUIVALENT TO A SUBSIDY ON US EXPORTS TO JAPAN SAID MR ROSENBERG OF MERRILL LYNCH INFLATION FACTOR FOR US ALTHOUGH NOT AN IMMEDIATE CONCERN A WEAK DOLLAR COULD ALSO CONTRIBUTE TO US INFLATION THAT'S BECAUSE AMERICAN MANUFACTURERS MIGHT USE THE HIGHER PRICES ON JAPANESE PRODUCTS AS AN EXCUSE TO RAISE THEIR OWN PRICES A WEAKER DOLLAR COULD ALSO HAVE A SIGNIFICANT IMPACT ON US AND JAPANESE STOCK PRICES CORPORATE EARNINGS AND THE VALUE OF US INVESTORS' HOLDINGS OF JAPANESE STOCKS AND BONDS BY MAKING THEM MORE COMPETITIVE AND BY MAKING THEIR SALES AND EARNINGS IN JAPAN WORTH MORE WHEN TRANSLATED INTO DOLLARS A FALLING DOLLAR CAN FATTEN US COMPANIES' BOTTOM LINES IMPROVED EARNINGS IN TURN CAN BOOST STOCK PRICES OF SOME MAJOR US MULTINATIONAL CORPORATIONS A WEAKER DOLLAR ALSO INCREASES THE VALUE OF A US INVESTOR'S JAPANESE PORTFOLIO THAT'S BECAUSE JAPANESE STOCKS AND BONDS WILL BE WORTH MORE WHEN TRANSLATED INTO US CURRENCY BY CONTRAST A WEAKER DOLLAR CAN DAMAGE THE EARNINGS OF JAPANESE COMPANIES BY HURTING SALES AND MAKING THOSE SALES WORTH LESS IN YEN TERMS THAT CAN LEAD TO LOWER STOCK PRICES THAT'S EXACTLY WHAT HAPPENED YESTERDAY WHEN THE TOKYO STOCK MARKET FELL 163 AS MEASURED BY THE JAPANESE PORTION OF THE DOW JONES WORLD STOCK INDEX BUT BECAUSE OF THE YEN'S STEEP ASCENT TOKYO SHARES WERE UP 245 IN DOLLAR TERMS SO FAR THIS YEAR THE DOW JONES EQUITY MARKET INDEX FOR JAPAN IS UP 101 IN YEN AND 199 IN DOLLARS MAJOR SUPPORT FOR THE YEN COMES FROM JAPAN'S TRADE SURPLUS WHICH MR WEINBERG OF HIGH FREQUENCY ECONOMICS ESTIMATES IS RUNNING AT ABOUT 120 BILLION A YEAR ROUGHLY HALF IS ATTRIBUTABLE TO THE US HE SAYS IN ADDITION HE NOTED THAT JAPANESE INSTITUTIONS HAVE CUT BACK THEIR PURCHASES OF FOREIGN SECURITIES PURCHASES THAT OTHERWISE WOULD HAVE HELPED TO WEAKEN THE YEN WHAT'S MORE SAYS MR ROSENBERG OF MERRILL LYNCH THE YEN HAS FALLEN BELOW ITS 200DAY MOVING AVERAGE AGAINST THE DOLLAR THAT MEANS THE MANY TRADERS AND INVESTORS WHO USE CHARTS TO PREDICT CURRENCY MOVEMENTS WILL BE BUYING THE CURRENCY NONETHELESS SOME TRADERS WARNED INVESTORS AGAINST BETTING THAT RIDING THE YEN HIGHER WAS A SMOOTH JOURNEY TO FATTER PROFITS ANY STATEMENT BY FED OR TREASURY OFFICIALS THAT THEY DON'T WANT THE YEN TO CLIMB ANY FURTHER COULD GET YOU A QUICK REVERSAL BECAUSE THERE ARE LOT OF PEOPLE SHORT DOLLARS OUT THERE SAID PAT MAGILL CHIEF CORPORATE DEALER AT DAIWA EUROPE BANK LTD IN LONDON TRADERS SAID THAT THE BANK OF JAPAN SOLD YEN AND BOUGHT DOLLARS DURING EARLY ASIAN TRADING TO TRY TO HALT THE YEN'S RISE BUT ANALYSTS DISAGREE ABOUT HOW SERIOUS WAS THE INTERVENTION EFFORT THEY ALSO DISAGREE ABOUT WHETHER JAPANESE CENTRAL BANK INTERVENTION CAN HAVE ANY LASTING IMPACT ON THE DOLLARYEN EXCHANGE RATE LAST YEAR THE TREASURY INTERVENED IN APRIL AND IN AUGUST TO STOP A RISE IN THE YEN THE COORDINATED SUMMER INTERVENTION BY JAPAN AND THE US CAME WHEN THE YEN HIT A POSTWAR HIGH TRADERS ARE BETTING THE US WON'T BE AS QUICK TO INTERVENE THIS TIME THOUGH AT THIS POINT GIVEN THE ADMINISTRATION'S DISAPPOINTMENT WITH JAPAN I THINK THEY'LL BE MUCH SLOWER TO MOVE AGAINST A HIGH YEN SAYS STEPHEN ROACH SENIOR US ECONOMIST AT MORGAN STANLEY & CO KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9402150041 940215 INTERNATIONAL EU UNIT TO MULL FORD PLAN TO LIFT HERTZ STAKE TO 54 SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN UNION COMMISSION SAID YESTERDAY THAT IT WILL STUDY A PLAN BY FORD MOTOR CO TO ACQUIRE CONTROL OF HERTZ CORP BY INCREASING ITS SHAREHOLDING FORD ALREADY OWNS 49 OF THE WORLDWIDE CARRENTAL COMPANY A FORD SPOKESMAN IN THE US SAID COMMERZBANK OF GERMANY WANTS TO SELL ITS 5 STAKE IN HERTZ TO FORD CLEARANCE BY THE EU AGENCY IS REQUIRED FORD SAID THE FEDERAL TRADE COMMISSION CLEARED THE PROPOSAL LAST YEAR IN A NOTICE IN THE EU'S OFFICIAL JOURNAL DATED FEB 12 THE COMMISSION SAID FORD'S PLAN MAY FALL UNDER THE JURISDICTION OF THE EU'S MERGER RULES UNDER THOSE RULES THE AGENCY HAS FOUR WEEKS TO DECIDE WHETHER THE PLAN COULD HARM COMPETITION IN EU MARKETS IF IT FINDS SERIOUS DOUBTS ABOUT THE TRANSACTION IT MUST OPEN A DEEPER FOURMONTH INVESTIGATION THE COMMISSION CAN ALTER OR BLOCK SUCH TRANSACTIONS IF THEY WOULD WEAKEN COMPETITION THE COMMISSION GAVE COMPETITORS UNTIL FEB 22 TO COMMENT 9402150040 940215 DIVIDEND NEWS PITNEY BOWES INC PITNEY BOWES INC A MAKER OF MAILING MACHINES AND OTHER OFFICE PRODUCTS BOOSTED ITS QUARTERLY DIVIDEND 16 TO 26 CENTS A SHARE FROM 225 CENTS PAYABLE MARCH 12 TO SHARES OF RECORD FEB 25 THE STAMFORD CONN COMPANY SAID THE INCREASE REFLECTS CONTINUED CONFIDENCE IN OUR STRATEGIC DIRECTION AND FINANCIAL SOUNDNESS 9402150039 940215 BUSINESS BRIEF ORACLE CORP THREE PRODUCT LINES PLANNED FOR ELECTRONIC SERVICES AREA ORACLE SYSTEMS CORP SAID IT PLANNED TO INTRODUCE THREE PRODUCT LINES TO SUPPORT THE DELIVERY OF MOVIES INFORMATION AND OTHER ELECTRONIC SERVICES OVER THE SOCALLED INFORMATION HIGHWAY ORACLE BASED IN REDWOOD CITY CALIF SAID IT WILL WORK WITH AT LEAST 17 MEDIA COMUNICATIONS AND ELECTRONICS COMPANIES TO PUSH ITS SOFTWARE TECHNOLOGY AS A STANDARD FOR MANAGING DATA ON THE INFORMATION HIGHWAY ORACLE'S PLANS FOR THIS EMERGING BUSINESS ARE WELLKNOWN THE MOST PROMINENT OF ITS PARTNERSHIPS ALREADY HAVE BEEN ANNOUNCED BUT ANALYSTS SAID THE STOCK ROSE 1 TO 3275 IN NASDAQ STOCK MARKET TRADING IN RESPONSE TO FURTHER DETAILS ORACLE WHICH SELLS AND SERVICES DATABASE SOFTWARE IS EXPECTED TO FACE STIFF COMPETITION FROM MICROSOFT CORP AND OTHERS BENT ON SUPPLYING MULTIMEDIA SOFTWARE BUT SO FAR ORACLE HAS BEEN THE MOST AGGRESSIVE IN STAKING A CLAIM OVER THIS INFANT MARKET LAST WEEK THE COMPANY SAID IT WOULD WORK WITH APPLE COMPUTER INC TO PRODUCE TV SETTOP BOXES FOR USE BY CABLE CUSTOMERS IN JANUARY THE COMPANY SAID IT WILL SUPPLY BELL ATLANTIC CORP WITH MULTIMEDIA SOFTWARE AND SERVICES 9402150038 940215 RETAILING ALL DECKED OUT STORES HEAD DOWNTOWN BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL A NEW BREED OF RETAIL PIONEER IS HEADING FOR A PROMISING FRONTIERDOWNTOWN HAVING DESERTED CENTER CITIES OVER THE PAST 20 YEARS RETAILERS ARE NOW BEING DRAWN BACK BY THE SAME FACTORS THAT LURED THEM TO THE SUBURBS REASONABLE REALESTATE PRICES AND PLENTY OF POTENTIAL CUSTOMERS MOREOVER URBAN DEVELOPERS SAY A DOWNTOWN STORE THESE DAYS CAN GIVE A BIG RETAILER A MARKET ALL TO ITSELF THERE IS ANOTHER REASON VIRTUALLY ALL THE PRIME LOCATIONS IN MAJOR SUBURBAN MALLS ARE OCCUPIED SAYS RICHARD ETCHIKSON CHAIRMAN OF RETAIL CONSULTANTS INC MILLBURN NJ AND RENTS IN UNOCCUPIED MALL SPACE ARE VERY HIGH MANY OF THE RETAILERS WHO WEREN'T INTERESTED IN THE CITY FIVE YEARS AGO ARE NOW ATTRACTED TO IT MR ETCHIKSON SAYS IN THE PAST THREE YEARS FILENE'S BASEMENT CORP HAS OPENED DOWNTOWN STORES IN WASHINGTON NEW YORK AND PHILADELPHIA KMART CORP SAYS IT'S HUNTING FOR A LOCATION IN DETROIT THOUGH THE COMPANY'S TROY MICH HEADQUARTERS IS ONLY EIGHT MILES NORTH OF DETROIT KMART HASN'T BUILT A NEW STORE IN THE MOTOR CITY IN MORE THAN TWO DECADES MONTGOMERY WARD & CO RECENTLY OPENED ONE OF ITS MODERATEPRICED DEPARTMENT STORES IN DOWNTOWN MINNEAPOLIS TOYS R US INC THE TOY SUPERSTORE SAYS FIVE OF THE 40 US STORES IT WILL OPEN THIS YEAR WILL BE IN URBAN AREAS CURRENTLY ONLY EIGHT OF ITS 581 US STORES ARE IN CENTRAL CITIES AND TARGET STORES THE BIG DISCOUNT DIVISION OF DAYTON HUDSON CORP IS PREPARING FOR THE MARCH 13 OPENING OF A STORE ITS BIGGEST EVER IN DOWNTOWN PASADENA CALIF TARGET ALSO OPENED A STORE IN CENTRAL DALLAS LAST OCTOBER TODAY'S URBAN RETAIL PIONEERS AREN'T THE SAME ONES THAT LEFT FOR THE HINTERLANDS THE EXODUS FROM DOWNTOWN WAS LED BY DEPARTMENT STORES AND SMALLER SHOPS THE NEWCOMERS PREDOMINANTLY ARE LOWPRICED RETAILERS MANY OF WHOM NEVER HAD A FOOTHOLD IN CITIES BUT WHO NOW ARE FINDING A STRONG CUSTOMER BASE THERE OUR MERCHANDISE ASSORTMENT IS IN CAREER CLOTHING SAYS GARY CRITTENDEN CHIEF FINANCIAL OFFICER OF FILENE'S BASEMENT OUR CUSTOMERS WORK AND LIVE DOWNTOWN SO IT IS A NATURAL PLACE FOR US TO BE DOWNTOWN ALSO IS A PLACE TO GROW WITH ITS STORES ALREADY BLANKETING THE SUBURBS TOYS R US MUST FIND NEW PLACES TO BUILD IF IT WANTS TO CONTINUE GAINING MARKET SHARE SAYS ROBERT NAKASONE VICE CHAIRMAN TO BE SURE OPENING CITY STORES PRESENTS CHALLENGES SUCH AS CRIME TIGHTER CONFINES AND DIFFERENT SHOPPING HABITS MONTGOMERY WARD SAYS CUSTOMERS AT ITS NEW DOWNTOWN MINNEAPOLIS STORE ARE MORE LIKELY TO BUY CLOTHING JEWELRY AND OFFICE PRODUCTS AND LESS PRONE TO BUY BIG APPLIANCES AS A RESULT A SPOKESWOMAN SAYS WE'RE WORKING TO MAKE THE STORE'S OFFERINGS APPROPRIATE FOR THAT ENVIRONMENT THE NEW DOWNTOWN RETAILERS ALSO ARE SCHEDULING MORE SALES CLERKS TO WORK DURING LUNCH TIME AND AT QUITTING TIME AND ARE STAFFING LIGHTLY IN THE EVENING AND ON WEEKENDS EVENINGS MAY BE SLOW SAYS TOYS R US'S MR NAKASONE BUT LUNCH TIME DOWNTOWN EVERY DAY IS LIKE THE CHRISTMAS SHOPPING SEASON DOWNTOWN STORES' DESIGN AND LOGISTICS CAN REQUIRE EXTRA WORK OFTEN REQUIRING RETAILERS TO ALTER SINGLELEVEL SUBURBANMALL PROTOTYPES TO FIT THE SPACE AVAILABLE TARGET'S THREESTORY PASADENA STORE WILL BE ITS FIRST MULTILEVEL OUTLET TARGET HAS INSTALLED FOUR OVERSIZED ELEVATORS AND ESCALATORS WITH STEPS DEEP ENOUGH TO ACCOMMODATE SHOPPING CARTS TOYS R US'S STORE IN DOWNTOWN CHICAGO WHICH ALSO OCCUPIES THREE FLOORS CAN ACCEPT DELIVERIES ONLY BETWEEN 630 PM AND 6 AM BECAUSE OF TRAFFIC RESTRICTIONS THE STORE THUS KEEPS ITS STOCKROOM OPEN ALL NIGHT TO RECEIVE INVENTORY THE FEAR OF URBAN CRIME IS ANOTHER CHALLENGE THE DEVELOPERS OF TARGET'S DOWNTOWN DALLAS STORE SOUGHT TO THWART CRIME BY LIGHTING THE PARKING LOT TO EIGHT TIMES THE INDUSTRY'S STANDARD LEVEL THE DEVELOPERS ALSO WERE CAREFUL NOT TO PLACE PUBLIC TELEPHONES IN OUTOFTHEWAY PLACES THESE TIPS CAME FROM CONSULTATIONS WITH THE DALLAS POLICE DEPARTMENT AT TOYS R US'S DOWNTOWN CHICAGO STORE CUSTOMERS HEADING FOR THE MAIN SELLING FLOOR MUST FIRST GO UP OR DOWN AN ESCALATOR MOVE THROUGH A SUBSIDIARY SELLING FLOOR AND TAKE ANOTHER ESCALATOR TO THE MAIN FLOOR A SECURITY DESK WATCHES OVER EXITS FROM THE MAIN FLOOR ASIDE FROM THE ADDED SECURITY TOYS R US SAYS THIS TRAFFIC FLOW FORCES CUSTOMERS TO ENCOUNTER MERCHANDISE IN THE SAME ORDER THAT THEY WOULD IF THEY WERE BREEZING THROUGH A SUBURBAN STORE NEITHER TOYS R US NOR TARGET HAS EXPERIENCED ANY SIGNIFICANT CRIME IN THEIR CITY STORES OFFICIALS SAY PAYING FOR THESE ADDITIONAL DESIGN LOGISTICS AND SECURITY MEASURES IS MORE AFFORDABLE FOR URBAN RETAILERS THESE DAYS BECAUSE OCCUPANCY COSTS IN MANY DOWNTOWNS HAVE DECLINED IN THE PAST THREE YEARS FOR EXAMPLE THE COMPANY DEVELOPING THE PROPERTY WHERE TARGET HAS ITS DOWNTOWN DALLAS STORE PAID 45 MILLION FOR THE PROPERTY LESS THAN A FIFTH OF WHAT ITS PRIOR OWNER PAID TO ASSEMBLE THE SITE IN THE EARLY 1980S THE CHEAPER REAL ESTATE ALLOWS THE DEVELOPER CITYPLACE CO TO CHARGE TARGET A RENTAL RATE NEARLY AS LOW AS WHAT TARGET PAYS IN THE DALLAS SUBURBS BETWEEN 3 AND 10 A SQUARE FOOT PER YEAR SAYS NEAL SLEEPER CITYPLACE PRESIDENT MR SLEEPER SAYS CITYPLACE HAS ANOTHER ATTRACTION FOR TARGET THE STORE WON'T HAVE TO WORRY ABOUT ANY OF ITS BIGCHAIN COMPETITORS SHOWING UP SOON BECAUSE SURROUNDING SPACE IS OCCUPIED HE SAYS THERE'S NO PLACE FOR ANYBODY ELSE TO COME GARNERING AN EXCLUSIVE FRANCHISE LOCKED KMART AND WALMART STORES INC IN A YEARLONG COMPETITION FOR A PARCEL IN KANSAS CITY MO THE VICTOR KMART WILL BE THE ONLY BIG DISCOUNTER WITHIN FIVE MILES OF THE PROPERTY SAYS STEPHEN G BLOCK AN EXECUTIVE OF THE COMPANY THAT IS DEVELOPING THE SITE ASSEMBLING THIS KIND OF SITE AGAIN IN THIS AREA IS GOING TO BE EXTREMELY DIFFICULT FOR A RETAILER SAYS MR BLOCK KMART KIND OF HAS A MONOPOLY HERE BY DEFAULT AS RETAILERS REDISCOVER THE CITY THEY ARE HELPING TO REVITALIZE AREAS THAT OFTEN HAVEN'T RESPONDED TO GOVERNMENTSPONSORED INITIATIVES BUT IT ISN'T ALTRUISM THAT'S AT WORK SAYS A TARGET SPOKESWOMAN BOTTOM LINE IS WE FELT WE COULD BE PROFITABLE 9402150037 940215 WHAT'S NEWS BUSINESS AND FINANCE VIACOM APPEARED TO GAIN VICTORY IN THE FIVEMONTH TAKEOVER BATTLE FOR PARAMOUNT BY MIDEVENING VIACOM'S OFFER OF ROUGHLY 10 BILLION HAD ATTRACTED MORE THAN 60 OF PARAMOUNT'S SHARES TWO PEOPLE FAMILIAR WITH THE COUNT SAID WELL IN EXCESS OF THE 501 NEEDED TO BEAT QVC BARRING LASTMINUTE CHANGES IN THE COUNT UNEXPECTED WITHDRAWALS BY SHAREHOLDERS OR A QVC COURT CHALLENGE THE BIDDING RULES REQUIRE QVC TO BOW OUT THE DOLLAR PLUNGED NEARLY 4 AGAINST THE YEN AMID SPECULATION THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD A JAPANESE MARKET OPENING BUT LAST NIGHT THE US ISSUED A STATEMENT THAT ITS POLICY HASN'T CHANGED AND THAT IT DOESN'T ENDORSE MANIPULATING EXCHANGE RATES THE WHITE HOUSE IS PREPARING A TWOPRONGED TRADE ATTACK DECIDING TO RENEW THE TOUGH SUPER 301 TRADE PROVISION AND PLANNING TRADESANCTION PROCEEDINGS OVER CELLULAR TELEPHONES MOST OF CORPORATE AMERICA HOWEVER DOESN'T WANT A TRADE WAR WITH JAPAN THAT THREATENS TO FLARE OUT OF CONTROL TOKYO STOCKS TUMBLED 27 MONDAY AFTER THE FAILURE OF USJAPAN TRADE TALKS SENT THE YEN SOARING AND FELL A FURTHER 31 TUESDAY MORNING THE JUSTICE DEPARTMENT OPPOSED AT&T'S REQUEST FOR A WAIVER THAT WOULD CLEAR AN OBSTACLE TO ITS PROPOSED PURCHASE OF MCCAW BUT THE MOVE WON'T NECESSARILY BLOCK THE PLAN GE AND HONEYWELL WERE ACCUSED BY TWO UNIONS OF FIRING MEXICAN WORKERS FOR TRYING TO ORGANIZE INTO LABOR UNIONS IN THE FIRST COMPLAINTS FILED UNDER NAFTA'S LABOR SIDEAGREEMENT BANC ONE'S AGREEMENT TO BUY FIRSTIER FINANCIAL FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK BUSINESS INVENTORIES HELD STEADY IN DECEMBER AND SALES ROSE 08 FOR ALL OF 1993 STOCKPILES WERE UP 3 WHILE SALES INCREASED A MORE ROBUST 54 EMPLOYER COSTS FOR PRESCRIPTIONDRUG BENEFITS JUMPED 15 LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTHPLAN EXPENSES A SURVEY FOUND DUFF & PHELPS PLANS TO SPIN OFF ITS CREDITRATING OPERATION A MOVE THAT WOULD FREE THE PARENT COMPANY FROM CONFLICTOFINTEREST CONCERNS THAT BLOCK IT FROM MANAGING MUTUAL FUNDS AOKI TENTATIVELY AGREED TO SELL MUCH OF ITS WESTIN HOTELS & RESORTS TO AN INVESTOR GROUP FOR 708 MILLION LLOYD'S OF LONDON INVESTORS REJECTED A 13 BILLION SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES THE INVESTORS INCURRED IN THE INSURANCE MARKET AT&T HIRED PIER CARLO FALOTTI A COMPUTER EXECUTIVE TO RUN ITS EUROPE MIDDLE EAST AND AFRICA OPERATIONS RETAILERS ARE RETURNING TO DOWNTOWN URBAN AREAS REVERSING A 20YEAR SHIFT TO SUBURBAN MALLS KMART MONTGOMERY WARD AND TOYS R' US ARE AMONG THE FIRMS OPENING STORES IN CITIES SEEKING REASONABLE REALESTATE RATES AND LOTS OF POTENTIAL CUSTOMERS BONDS LEHMAN BROTHERS TREASURY INDEX 553456 OFF 831 COMMODITIES OIL 1413 A BARREL OFF 59 CENTS DOW JONES FUTURES INDEX 14503 UP 067 SPOT INDEX 13056 OFF 004 DOLLAR 10265 YEN OFF 420 17273 MARKS OFF 00270 9402150036 940215 BUSINESS BRIEF GENERAL PUBLIC UTILITIES CORP REORGANIZATION IS TO CREATE NEW UNIT AND DECREASE COSTS GENERAL PUBLIC UTILITIES CORP PARSIPPANY NJ SAID IT PLANS A REORGANIZATION TO SEPARATE POWER GENERATION FROM DISTRIBUTION ACTIVITIES AND CUT COSTS THE UTILITY HOLDING COMPANY SAID IT WILL CREATE A NEW UNIT GPU GENERATION CORP IN JOHNSTOWN PA TO OPERATE GENERATING STATIONS FORMERLY OWNED OR OPERATED BY ITS METROPOLITAN EDISON PENNSYLVANIA ELECTRIC AND JERSEY CENTRAL POWER & LIGHT UNITS THE COMPANY ALSO PLANS TO COMBINE THE POWER TRANSMISSION DISTRIBUTION AND CUSTOMERSERVICE FUNCTIONS OF METED AND PENNSYLVANIA ELECTRIC ALTHOUGH THE TWO COMPANIES WON'T BE MERGED THE REALIGNMENT WILL RESULT IN SIGNIFICANT REDUCTION IN PAYROLL SAID CHAIRMAN JAMES R LEVA GPU'S ACTIONS ARE SIMILAR TO OTHER UTILITIES' RESPONSES TO COMPETITION AND CHANGING REGULATION COMPANIES HAVE BEEN TRYING TO SEPARATE REGULATED FROM NONREGULATED BUSINESSES AS WELL AS POWERGENERATION OPERATIONS FROM POWER DISTRIBUTION 9402150035 940215 SPEAKING OF BUSINESS A TEST OF NERVES BY LINDLEY H CLARK JR SUPPOSE YOU'RE STARTING OUT TO INVEST IN THE MARKET FOR THE FIRST TIME YOU WANT TO BE SAFE BUT YOU'D ALSO LIKE TO MAKE A LITTLE MONEY YOU'VE ALWAYS HEARD THAT BONDS WERE THE SAFE THING TO BUY BUT YOU'VE ALSO HEARD THAT STOCKS ALWAYS REPEAT ALWAYS PAY A BETTER RETURN THAN BONDS SO HOW ABOUT STOCKS THE DOW JONES INDUSTRIAL AVERAGE YOU'VE HEARD IS MADE UP OF HIGHGRADE STOCKS THE SORT OF SECURITIES THAT EXPERIENCED INVESTORS CALL BLUE CHIPS SO WHAT CAN YOU GET ON BLUE CHIPS CONSULTING THE WALL STREET JOURNAL YOU FIND THAT THE AVERAGE DIVIDEND YIELD ON INDUSTRIAL AVERAGE STOCKS IS LESS THAN 3 THAT'S PRETTY DISAPPOINTING THE JOURNAL HAS CLUED YOU IN TO THE FACT THAT BONDS YIELD MORE THAN TWICE THAT EVEN TREASURY BONDS ABOUT THE SAFEST INVESTMENT AROUND YIELD TWICE WHAT DJIA STOCKS DO WELL NOT TO WORRY THE KEY WORD IS RETURN NOT YIELD IF YOU BUY A 1000 TREASURY BOND IT WILL STILL BE WORTH JUST 1000 WHEN YOU CASH IT IN IF YOU INVEST 1000 IN BLUECHIP STOCKS THE STOCKS MAY BE WORTH A GOOD DEAL MORE WHEN YOU SELL THEM IF YOU BOUGHT AN AVERAGE DJIA STOCK A YEAR AGO IT WOULD NOW BE WORTH NEARLY 20 MORE THAN YOU PAID FOR IT YOUR DIVIDEND YIELD MAY BE PIDDLING BUT THE TOTAL RETURN ON YOUR INVESTMENT HAS BEEN A HEALTHY 20PLUS IT'S OBVIOUS THAT MANY PEOPLE HAVE BEEN BUYING STOCKS IN THE PAST YEAR PUSHING THE INDUSTRIAL AVERAGE UP TO ONE NEW HIGH AFTER ANOTHER THE RISE WAS INTERRUPTED BY REACTION TO THE FEDERAL RESERVE'S INCREASE IN THE FEDERAL FUNDS RATE BUT MOST ANALYSTS EXPECT IT TO RESUME SOME OF THE STOCKBUYERS SURELY HAVE BEEN HOPING THAT THE BLUECHIP COMPANIES SOON WILL RAISE THEIR DIVIDENDS MAKING THE DIVIDEND YIELD MORE ATTRACTIVE SOME INVESTORS AREN'T EXACTLY COMFORTABLE WITH THE IDEA THAT THEY WILL HAVE TO SELL THEIR STOCK AT JUST THE RIGHT TIME TO GET THE BEST POSSIBLE RETURN THIS COULD SPUR A BINGE OF PROFITTAKING WHICH WOULD SEND PRICES TUMBLING THIS HAS BEEN ONE OF THE LONGEST BULL MARKETS SINCE WORLD WAR II AND SOME ANALYSTS THINK IT MAY BE ABOUT TIME FOR A CORRECTION DECLINING STOCK PRICES AT SOME POINT COULD SPUR A LOVE FOR BONDS IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER TWO CORNELL UNIVERSITY ECONOMISTS SHLOMO BENARTZI AND RICHARD THALER NOTE THAT SINCE 1926 THE AVERAGE INFLATIONADJUSTED RATE OF RETURN ON STOCKS HAS BEEN 7 COMPARED WITH LESS THAN 1 FOR TREASURY BILLS ONE OF THE LEAST RISKY OF ASSETS BUT THE STOCK MARKET HAS HAD LOTS OF UPS AND DOWNS IN THE PAST 68 YEARS PART OF THE REASON FOR THE HUGE DISPARITY BETWEEN STOCKS AND DEBT ISSUES IS THAT COMPANIES MUST PERSUADE INVESTORS TO TAKE RISKS BY OFFERING THE LURE OF A HIGHER RETURN IN THE PAST YEAR THE RAPID RISE OF THE MARKET HAS EASED THIS PROBLEM FOR CORPORATIONS THE CORNELL ECONOMISTS COMMENT EMPIRICAL ESTIMATES OF LOSS AVERSION ARE TYPICALLY IN THE NEIGHBORHOOD OF 2 MEANING THE DISUTILITY OF GIVING SOMETHING UP IS TWICE AS GREAT AS THE UTILITY OF ACQUIRING IT BUT LOSS AVERSION ISN'T THE ONLY FACTOR AT WORK ACCORDING TO THE AUTHORS A LOT DEPENDS ON HOW OFTEN THE INVESTOR EXAMINES HIS PORTFOLIO HOW NERVOUS IS HE MENTALLY OR WITH PAPER AND PENCIL DOES HE EXAMINE HIS HOLDINGS EVERY WEEK EVERY MONTH EVERY YEAR EVERY DECADE THE FREQUENCY OF THESE EXAMINATIONS HELPS TO DETERMINE HOW MUCH RISK THE INVESTOR WILL ACCEPT IF HE IS STRICTLY A BUYANDHOLD INVESTOR HE MAY LOOK THE PURCHASE OVER PRETTY CAREFULLY BEFORE HE MAKES IT BUT THEN HE MAY PUT THE CERTIFICATE AWAY AND NOT EVEN THINK OF IT FOR YEARS HOWEVER IF HE IS THE SORT WHO FLIPS TO THE MARKET PAGES EVERY MORNING AND CAREFULLY CHECKS HOW HIS STOCKS ARE DOING ANY UNUSUAL VOLATILITY IS LIKELY TO TRIGGER A CALL TO HIS BROKER THE AUTHORS CONDUCT A VARIETY OF EXERCISES TO DETERMINE HOW OFTEN AN INVESTOR MUST EXAMINE HIS PORTFOLIO IF HE IS TO BE INDIFFERENT ABOUT WHETHER TO BUY STOCKS OR BONDS THEY CONCLUDE THAT THE INVESTOR WHO EXAMINES HIS HOLDINGS ABOUT ONCE A YEAR WOULDN'T CARE WHETHER HE HAD STOCKS OR BONDS IDEALLY THEY SUGGEST HE WILL HOLD ABOUT 50 OF EACH THE AUTHORS CALL THE COMBINATION OF LOSS AVERSION AND A TENDENCY TO EXAMINE PORTFOLIOS FREQUENTLY MYOPIC LOSS AVERSION IF DIVIDEND YIELDS STAY LOW AND INVESTORS READ THE FINANCIAL PAGES A LITTLE MORE FREQUENTLY THERE'S LIKELY TO BE A LOT OF THAT GOING AROUND 9402150034 940215 BUSINESS BRIEF OHM CORP FOURTHQUARTER NET INCOME OF 11 MILLION IS POSTED OHM CORP FINDLAY OHIO REPORTED NET INCOME FOR THE FOURTH QUARTER AS INCREASING INCOME FROM GOVERNMENT PROJECTS ESPECIALLY SUPERFUND SITES OFFSET DECLINING REVENUE FROM THE PRIVATE SECTOR FOR THE QUARTER THE ENVIRONMENTAL REMEDIATION CONCERN EARNED 11 MILLION OR EIGHT CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 55 MILLION OR 46 CENTS A SHARE REVENUE INCREASED 38 TO 784 MILLION FROM 568 MILLION OHM SAID ORDER BACKLOGS INCLUDING SOME CONTRACTS AWARDED IN EARLY 1994 ARE NOW MORE THAN 11 BILLION THE COMPANY HAD AN ORDER BACKLOG AT YEAR END OF ABOUT 853 MILLION UP FROM 371 MILLION AT THE END OF 1992 FOR THE YEAR OHM REPORTED NET OF 44 MILLION OR 35 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 43 MILLION OR 35 CENTS A SHARE REVENUE INCREASED 95 TO 2424 MILLION FROM 2214 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY OHM CLOSED AT 16625 UP 375 CENTS 9402150033 940215 WHAT'S NEWS WORLDWIDE A UN COMMANDER STEPPED UP PRESSURE ON BOSNIAN SERB FORCES THE UN'S MILITARY CHIEF FOR BOSNIA TOLD THE SERBS THEY MUST GIVE HIS FORCES IN SARAJEVO CONTROL OF THEIR HEAVY GUNS BY SUNDAY OR FACE NATO AIR STRIKES HIS STATEMENT EFFECTIVELY CLOSED THE GAP BETWEEN PLANS DEVELOPED BY THE UN AND NATO FOR ENDING FIGHTING IN BOSNIA THERE HAD BEEN SPECULATION THAT THE SERBS COULD EXPLOIT DIFFERENCES BETWEEN THE TWO PLANS TO DELAY WITHDRAWING THEIR WEAPONS THE SERB FORCES TURNED IN TWO MORE ARTILLERY PIECES BRINGING TO 28 THE TOTAL THEY HAVE GIVEN UP SO FAR MORE THAN 500 HEAVY WEAPONS ARE SAID TO RING THE BOSNIAN CAPITAL THE US IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY IN HAITI BUT DOESN'T INCLUDE A FIRM DATE FOR THE RETURN OF OUSTED PRESIDENT ARISTIDE IN A WIDENING BREACH WITH ARISTIDE THE US PLAN CALLS FOR HIS EVENTUAL RESTORATION AFTER HE NAMES A PRIME MINISTER AND A NEW GOVERNMENT TAKES CERTAIN ACTIONS THE COUNCIL OF ECONOMIC ADVISERS SAID A WIDENING GAP BETWEEN RICH AND POOR IN THE US IS A THREAT TO THE SOCIAL FABRIC AND BLAMED TECHNOLOGY THE DECLINE OF UNIONS A LAGGING MINIMUM WAGE AND IMMIGRATION THE REPORT DESCRIBES AN ADMINISTRATION PHILOSOPHY THAT GOVERNMENT MUST PROMOTE ECONOMIC EXPANSION CLINTON PLEDGED 396 MILLION IN NEW US ECONOMIC AID TO KAZAKHSTAN TO HELP THE EXSOVIET REPUBLIC MOVE TO A MARKET ECONOMY AND DISMANTLE NUCLEAR ARMS CLINTON SAID HE PROMISED THE AID AFTER KAZAKHSTAN PRESIDENT NAZARBAYEV PRESENTED HIM WITH PAPERS DOCUMENTING THAT NATION'S DECISION IN DECEMBER TO BECOME A NONNUCLEAR STATE THE RUSSIAN NAVY ANNOUNCED IT IS MOTHBALLING THREE OF ITS FIVE AIRCRAFT CARRIERS BECAUSE IT NO LONGER CAN AFFORD TO KEEP THE VESSELS AFLOAT EACH OF THE THREE CARRIERS IS IN NEED OF AN OVERHAUL BUT RUSSIA LACKS A BIG ENOUGH SHIPYARD OR THE RESOURCES TO REPAIR THEM THEIR 620FOOTLONG FLIGHT DECKS CAN HANDLE ONLY VERTICAL TAKEOFF AIRCRAFT A TRADE GROUP FOR HMOS IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG US CHILDREN TO 90 BY 1996 THE GROUP HEALTH ASSOCIATION OF AMERICA SAID THAT MORE THAN 250 HMOS WILL BE PARTICIPATING IN THE NATIONWIDE PROJECT THE PLO INSISTED THAT A FINAL DETAILED ACCORD WITH ISRAEL ON PALESTINIAN SELFRULE MUST INCLUDE FULL AMNESTY FOR PALESTINIAN PRISONERS IN ISRAELI HANDS AFTER A DAY OF PLOISRAELI TALKS IN EGYPT THE CHIEF PLO NEGOTIATOR EMPHASIZED THE AMNESTY ISSUE BUT PREDICTED THAT DETAILS OF AN AGREEMENT COULD BE WRAPPED UP IN LESS THAN A MONTH ARMED MEXICAN REBELS AGREED TO RELEASE A FORMER CHIAPAS STATE GOVERNOR THEY HAVE BEEN HOLDING SINCE JAN 2 A GOVERNMENT PEACE ENVOY SAID THE HOSTAGE GEN CASTELLANOS IS TO BE FREED TOMORROW AS A GESTURE OF GOODWILL THE GOVERNMENT ENVOY SAID THE MOVE APPARENTLY WOULD BRING THE TWO SIDES CLOSER TO LONGAWAITED PEACE TALKS CLINTON'S HEALTH PLAN SHOULD BE CHANGED TO ENSURE THAT GAY PEOPLE AREN'T DISCRIMINATED AGAINST EITHER AS DOCTORS OR PATIENTS THE NATIONAL GAY AND LESBIAN TASK FORCE SAID THE GROUP PRAISED THE PRESIDENT'S COMMITMENT TO UNIVERSAL COVERAGE BUT SAID HIS BILL SHOULD AMONG OTHER THINGS ADD SPECIFIC LANGUAGE BARRING DISCRIMINATION ZULU DEMONSTRATORS OPENED FIRE OUTSIDE THE CITY HALL IN A SOUTH AFRICAN PORT DURBAN AS THEIR KING MET WITH PRESIDENT DE KLERK AND SAID HIS SUBJECTS WERE PREPARED TO DEFY THE GOVERNMENT AND PROCLAIM THEIR OWN STATE KING GOODWILL ZWELITHINI INTERRUPTED HIS TALKS TO APPEAL FOR ORDER AFTER THE VIOLENCE ERUPTED ONE MAN WAS KILLED PERU'S FUJIMORI DISMISSED THE POSSIBILITY OF NEGOTIATING WITH GUERRILLA GROUPS AND VOWED TO ERADICATE THEM BEFORE HIS TERM EXPIRES IN 1995 THE PRESIDENT SPEAKING DURING AN OFFICIAL VISIT IN COLOMBIA SAID HE WOULD NEVER OFFER NEGOTIATED FREEDOM TO THE LEADER OF THE SHINING PATH REBELS GUZMAN WHO WAS CAPTURED IN 1992 ETHNIC FIGHTING IN GHANA HAS GROWN INTO A VIRTUAL GUERRILLA WAR OVER THE PAST TWO WEEKS THAT HAS KILLED HUNDREDS AND PERHAPS THOUSANDS OF PEOPLE AND DESTROYED DOZENS OF VILLAGES IN THE NORTH MILITARY OFFICIALS SAID THE ATTACKS HAVE BEEN CARRIED OUT WITH POISONED ARROWS MACHETES AND AUTOMATIC WEAPONS THE OFFICIALS ADDED 9402150032 940215 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AN AGREEMENT COULD BE COMPLETED THIS SUMMER TO SET UP AN AMERICAN ACADEMY IN BERLIN MODELED ON THE CENTURYOLD AMERICAN ACADEMY IN ROME THE PROPOSAL BACKED BY THE US CONGRESS AND THE SMITHSONIAN INSTITUTION IS INTENDED TO DEMONSTRATE THE US COMMITMENT TO THE GERMAN CITY FOLLOWING THE US TROOP WITHDRAWAL LATER THIS YEAR THE ACADEMY WOULD SUPPORT RESEARCH AND CREATIONS BY VISITING SCHOLARS ARTISTS WRITERS AND OTHERS IN THE HUMANITIES IT ALSO WOULD HAVE A CENTER FOR RESEARCH ON EASTERN EUROPEAN HISTORY AND CULTURE STEVEN MANSBACH A PROFESSOR AT THE CENTER FOR ADVANCED STUDIES IN THE VISUAL ARTS AT WASHINGTON'S NATIONAL GALLERY OF ART IS TO BE THE ACADEMY'S DIRECTOR THE PROJECT TO BE FUNDED BY PRIVATE AND CORPORATE SOURCES HAS BEEN COORDINATED FROM THE SMITHSONIAN OF THE 44 MILLION ENDOWMENT NEEDED TO FUND OPERATIONS ABOUT 2 MILLION HAS BEEN COMMITTED AND MORE PLEDGES ARE CONTINGENT ON SECURING A PERMANENT HOME IN BERLIN AS FRENCH FISHERMEN WIDENED A TWOWEEKOLD STRIKE TO MEDITERRANEAN PORTS THE GOVERNMENT VOWED TO BLOCK FISH IMPORTS UNTIL JUNE THE FISHERMEN WHOSE PROTESTS OFTEN TURNED VIOLENT REQUESTED MORE AID FOR SMALLER OPERATORS HURT BY HIGH COSTS AND INEXPENSIVE FISH IMPORTS THE GOVERNMENT HAS GRANTED 75 MILLION IN AID SO FAR FISHERMEN YESTERDAY SOUGHT TO BLOCK SHIPPING TRAFFIC IN SOME PASSENGER OIL AND FISHING PORTS WHILE FISHERMEN FROM BRITTANY STOPPED TRUCKS ON HIGHWAYS TO PARIS TO CHECK FOR IMPORTED FISH AND DUMPED SOME CARGOES THE US SELLS 130 MILLION OF FISH A YEAR IN FRANCE AT LEAST 25 OF CHINESE MARRIED WOMEN HAVE HAD ONE ABORTION AND 8 TWO OR MORE A SURVEY BY THE GOVERNMENTCONTROLLED ALL CHINA WOMEN'S FEDERATION FOUND SUCH DATA HADN'T BEEN AVAILABLE IN CHINA WHICH CONTROLS POPULATION GROWTH BY LIMITING COUPLES TO ONE CHILD CITIES WHERE BIRTH RATES ARE THE LOWEST HAD THE HIGHEST ABORTION RATES LOWER RATES IN RURAL AREAS REFLECT RELATIVELY MORE STERILIZATIONS AFTER COUPLES HAVE ONE CHILD AS CHILDBIRTH OUTSIDE MARRIAGE IS SOCIALLY UNACCEPTABLE SINGLE WOMEN ACCOUNTED FOR 25 OF THE ABORTIONS IN SHANGHAI AND BEIJING THE NUMBER OF POTENTIAL INVESTORS WHO VISITED VIETNAM LAST YEAR INCREASED 23 AS A RESULT OF LAST FALL'S RESUMPTION OF MULTILATERAL LENDING TO THE COUNTRY THE GOVERNMENT SAID 7400 PROSPECTIVE INVESTORS MET WITH THE AGENCY THAT REGULATES FOREIGN INVESTMENT JAPANESE VISITORS LED THE PARADE FOLLOWED BY THOSE FROM TAIWAN THE US SOUTH KOREA AND FRANCE THE INFLUX PRECEDING THE LIFTING OF THE US ECONOMIC EMBARGO AGAINST VIETNAM STEMMED LARGELY FROM RESUMPTION OF LENDING BY AGENCIES SUCH AS THE WORLD BANK TO HELP REBUILD ROADS BRIDGES AND PORTS REGIONAL OFFICIALS IN VLADIVOSTOK APPROVED BUILDING TANKS IN RUSSIA'S FAR EAST FOR TEMPORARILY STORING NUCLEAR WASTE INSTEAD OF DUMPING IT INTO THE SEA OF JAPAN THE TANKS ARE TO BE INSTALLED ABOUT 125 MILES EAST OF VLADIVOSTOK RUSSIA'S MAIN PACIFIC PORT JAPAN HAS AGREED TO FINANCE JAPANESE FIRMS' CONSTRUCTION OF A FAR EAST WASTEREPROCESSING PLANT IF RUSSIA DISCONTINUES OCEAN DUMPING THE IG METALL METALWORKERS UNION IN GERMANY RULING OUT LONGER WORKWEEKS AS A CONCESSION TO EMPLOYERS SAID IT WOULD RESUME WARNING STRIKES THIS WEEK A FULL STRIKE COULD BEGIN IN MARCH THE GESAMTMETALL EMPLOYERS GROUP SEEKING TO CUT ITS COSTS 10 HAS PROPOSED A WAGE FREEZE AND BENEFIT CUTS THE UNION SAID IT WOULDN'T CAST ASIDE 15 YEARS OF LABOR POLICY TO BREAK THE DEADLOCK THAT CAUSED NEGOTIATIONS TO COLLAPSE THOUGH IT WOULD ACCEPT SMALLER WAGE BOOSTS IN RETURN FOR JOB GUARANTEES THE EUROPEAN UNION COMMISSION IS EXPECTED THIS WEEK TO FINE 17 STEELMAKERS FOR ALLEGED PRICE FIXING THE MOVE COULD RAISE TENSIONS ABOUT PLANS TO OVERHAUL WESTERN EUROPE'S AILING STEEL INDUSTRY OFFICIALS SAID THE PENALTIES WOULD REFLECT CARTELLIKE ACTIVITY DATING BACK TO THE LATE 1980S FOR COLLUSION ON PRICES AND CORPORATE DATA ON MARKET DEMAND AND TRENDS UNDER EU COMPETITION LAW FINES CAN AMOUNT TO AS MUCH AS 10 OF A COMPANY'S ANNUAL REVENUE INDUSTRY OFFICIALS WERE OUTRAGED BY THE PLANNED ACTION AS THEY PREPARED FOR PRODUCTIONCUTBACK TALKS TODAY WITH THE EU ANTITRUST AND INDUSTRY COMMISSIONERS STEELMAKERS AND THE EU HAVE BEEN AT LOGGERHEADS SINCE LAST AUTUMN ON HOW TO REDUCE THE SECTOR'S SURPLUS CAPACITY IN DECEMBER THE EU APPROVED 752 BILLION IN GOVERNMENT SUBSIDIES FOR STEELMAKERS OWNED BY GERMANY ITALY SPAIN AND PORTUGAL OTHER PRODUCERS SAID THE EU WAS LETTING SUBSIDIES DISTORT COMPETITION WHILE PRESSING THEM FOR COSTLY PLANT CLOSURES CHINA'S PHARMACEUTICAL IMPORTS IN 1993 ROSE 20 TO 600 MILLION FROM 1992 AND ALMOST DOUBLED FROM 1991 THEY ACCOUNTED FOR AT LEAST 7 OF CHINA'S PHARMACEUTICAL MARKET WHILE FOREIGN JOINT VENTURES' PRODUCTS REPRESENTED 35 THE US ADVISED AMERICANS TRAVELING TO OR LIVING IN EGYPT TO BE SECURITYCONSCIOUS AND KEEP A LOW PROFILE IT CITED THREATS AND VIOLENCE BY ISLAMIC EXTREMISTS AGAINST FOREIGN INVESTORS AND TOURISTS EVEN THOUGH US CITIZENS HAVEN'T BEEN SINGLED OUT AS TARGETS 9402150031 940215 TECHNOLOGY & HEALTH EMPLOYER COSTS FOR PRESCRIPTION DRUGS INCREASED 15 LAST YEAR SURVEY FINDS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EMPLOYER COSTS FOR PRESCRIPTIONDRUG BENEFITS JUMPED 15 LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTHPLAN EXPENSES ACCORDING TO FOSTER HIGGINS AN EMPLOYEEBENEFITS CONSULTANT THE FINDINGS INDICATE THAT DESPITE GROWTH OF MANAGEDCARE STRATEGIES TO CONTAIN HEALTH COSTS AND PLEDGES FROM DRUG MANUFACTURERS TO HOLD DOWN PRICE INCREASES MANY EMPLOYERS ARE STILL HAVING DIFFICULTY HOLDING DOWN THE COST OF PRESCRIPTION DRUGS FOR THEIR WORKERS THE MOST SUCCESSFUL APPROACH WE SEE IN HOLDING DOWN COSTS IS GETTING MORE AND MORE EMPLOYEES INTO MANAGED CARE SAID DAVID RAHILL PRINCIPAL AT FOSTER HIGGINS THE OVERALL RESULTS PROVIDE FURTHER EVIDENCE OF A GENERAL MODERATION IN HEALTHCARE INFLATION LAST MONTH FOR INSTANCE THE BUREAU OF LABOR STATISTICS REPORTED THAT MEDICALCARE PRICES ROSE JUST 54 LAST YEAR THE LOWEST ANNUAL INCREASE SINCE 1973 BUT THE RESULTS FOR DRUG BENEFITS RUN COUNTER TO THAT TREND AND MAY REFLECT A VARIETY OF CONFLICTING FORCES IN THE MARKET FOR ONE THING SAID JAMES A NORTON MANAGING CONSULTANT IN FOSTER HIGGINS'S STAMFORD CONN OFFICE MORE COMPANIES ARE TRYING NEW TECHNIQUES TO MANAGE THEIR DRUG COSTS AND THE INITIAL IMPACT OF SUCH STRATEGIES OFTEN IS TO INCREASE COSTS THAT'S BECAUSE OF THE SHOEBOX EFFECT FOR EXAMPLE PRESCRIPTION CARDS AUTOMATICALLY RECORD CLAIMS THAT EMPLOYEES MIGHT OTHERWISE HAVE STUFFED IN A SHOEBOX AND NEVER FILED ANOTHER FACTOR MR NORTON SAID MIGHT BE THE GROWING USE OF NEW DRUGS SUCH AS PROZAC AN ANTIDEPRESSANT MARKETED BY ELI LILLY & CO MANY EXPERTS SAID THEY BELIEVE THAT CONSUMERS ARE SEEKING AND PHYSICIANS ARE PRESCRIBING SUCH MEDICINES FOR CONDITIONS THAT DON'T CALL FOR PILLS THE CONSUMPTION OF DRUGS BY THE POPULATION IS INCREASING STEADILY EACH YEAR AND NOT NECESSARILY BECAUSE THE RATE OF DISEASE IS INCREASING IT APPEARS UNLIKELY THAT DRUGPRICE INCREASES CONTRIBUTED SIGNIFICANTLY TO THE RISE IN CORPORATE COSTS SINCE PRESCRIPTION DRUG PRICES WENT UP JUST 31 LAST YEAR ACCORDING TO THE PRODUCERPRICE INDEX COMPARED WITH THE 15 RISE IN EMPLOYERDRUG COSTS REVENUES AT THE MAJOR DRUG COMPANIES GREW ABOUT 5 NOTED JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORP A MERCK & CO SPOKESMAN SAID GROWTH OF MEMBERSHIP IN MANAGEDCARE PLANS COULD ACCOUNT FOR SOME INCREASE IN EMPLOYERDRUG COSTS BECAUSE THE PLANS TEND TO USE DRUGS MORE AGGRESSIVELY TO HOLD DOWN HOSPITAL AND OTHER HEALTHCARE EXPENSES BUT BECAUSE MANAGEDCARE ORGANIZATIONS NEGOTIATE DISCOUNTS THEIR INCREASED UTILIZATION AND INCREASED COST MIGHT NOT INCREASE DRUG COMPANIES' REVENUES PROPORTIONATELY SAID A SPOKESMAN FOR MCKESSON CORP WHICH OWNS PCS HEALTH SYSTEMS INC A BIG MANAGER OF PHARMACEUTICAL COSTS FOR HEALTH PLANS ACCORDING TO IMS AMERICA LTD WHICH COLLECTS DATA ON PRESCRIPTIONS DISPENSED IN THE NATION'S PHARMACIES INDIVIDUAL PRESCRIPTIONS WERE UP 5 IN 1993 BUT THOSE DISTRIBUTED BY MAILORDER PHARMACIES WHICH ARE HEAVILY USED BY MANAGEDCARE ORGANIZATIONS WERE UP 15 OTHER FINDINGS FROM THE SURVEY SHOWED THAT THE AVERAGE TOTAL HEALTH BENEFIT COST PER EMPLOYEE WAS 3781 LAST YEAR UP FROM 3502 IN 1992 COSTS AT HEALTHMAINTENANCE ORGANIZATIONS ROSE 65 WHILE THOSE IN TRADITIONAL FEEFORSERVICE PLANS GREW 71 AT MANAGEDCARE NETWORKS KNOWN AS PREFERREDPROVIDER ORGANIZATIONS OR PPOS COSTS WERE UP 55 WHILE AT SOCALLED POINTOFSERVICE PLANS HMOS THAT PROVIDE MEMBERS WITH THE OPTION OF GETTING CARE OUTSIDE OF THEIR NETWORK INCREASES WERE 89 UNLIKE TRADITIONAL HMOS BOTH PPOS AND POINTOFSERVICE PLANS OFFER MEMBERS THE OPTION AT INCREASED OUTOFPOCKET COSTS TO SEE DOCTORS OUTSIDE OF THE HEALTH PLAN NEARLY ALL OF THE ENROLLMENT GROWTH IN MANAGED CARE OCCURRED IN THOSE TYPES OF PLANS WHILE TRADITIONAL HMO MEMBERSHIP WAS ALMOST FLAT THE SURVEY FOUND THE DESIRE TO HAVE SOME CHOICE IS A KEY SELLING FEATURE OF ANY NEW HEALTH PLAN MR RAHILL SAID PRESERVING CHOICE OF DOCTORS IS EMERGING AS A KEY ISSUE IN THE NATIONAL DEBATE OVER LEGISLATIVE PROPOSALS TO REFORM THE HEALTHCARE SYSTEM THE SURVEY ALSO FOUND THAT FOR SMALL EMPLOYERS THOSE WITH 10 TO 499 EMPLOYEES TOTAL AVERAGE HEALTHBENEFITS COSTS WERE 3240 COMPARED WITH 4117 FOR EMPLOYERS WITH AT LEAST 500 WORKERS SMALLER COMPANIES GENERALLY OFFER A LESS GENEROUS BENEFITS PACKAGE REQUIRE THEIR EMPLOYEES TO PAY HIGHER OUTOFPOCKET COSTS AND DON'T PROVIDE RETIREE BENEFITS FOSTER HIGGINS SAID ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9402150030 940215 BUSINESS BRIEF WESTERN CO OF NORTH AMERICA OPERATING PROFIT FELL 44 DURING THE FOURTH QUARTER WESTERN CO OF NORTH AMERICA HOUSTON SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER OPERATING PROFIT FELL 44 LARGELY AS A RESULT OF THE COMPANY HAVING SOLD MUCH OF ITS OFFSHORE OIL AND GAS DRILLING RIGS DURING THE LAST YEAR WESTERN CO WHICH SAID IT'S FOCUSING MORE ON ITS PRESSURESERVICING BUSINESS FOR OIL AND GAS WELLS SAID IT EXPECTS OPERATING PROFIT OF 45 MILLION OR 24 CENTS A SHARE IN THE YEAREARLIER QUARTER BEFORE A CHARGE OF 12 MILLION FROM THE PREPAYMENT OF DEBT THE COMPANY REPORTED PROFIT OF 8 MILLION OR 45 CENTS A SHARE ON REVENUE OF 1002 MILLION NET INCOME WAS 68 MILLION OR 38 CENTS A SHARE THE OILFIELDSERVICE COMPANY'S ESTIMATE FOR THE MOST RECENT FOURTHQUARTER EARNINGS EXCLUDES SEVERAL EXPECTED NONRECURRING ITEMS A GAIN OF 396 MILLION FROM THE SALE OF RIGS CERTAIN ASSET WRITEDOWNS TOTALING 14 MILLION AND A CHARGE OF 262 MILLION RELATED TO THE REPURCHASE OF SENIOR NOTES 9402150028 940215 INTERNATIONAL LLOYD'S OFFER TO INVESTORS IS REJECTED BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON INVESTORS REJECTED A 900 MILLION 13 BILLION SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES SUFFERED BY THE INSURANCE MARKET'S INVESTORS THE INVESTORS SOME OF WHOM HAVE BEEN RUINED BECAUSE OF BIG LOSSES FROM ASBESTOS POLLUTION AND NATURALDISASTER CLAIMS ARE GAMBLING THEY WILL GET MORE MONEY FROM LITIGATION OR FROM A SWEETENED OFFER FROM LLOYD'S DESPITE LLOYD'S CLAIMS TO THE CONTRARY THE INVESTORS BELIEVE IT WILL MAKE A BETTER OFFER RATHER THAN FACE THE FINANCIAL AND PUBLIC RELATIONS RISKS OF A DRAWNOUT SPECTACLE IN COURT THE COMPENSATION PACKAGE WAS ORIGINALLY OFFERED TO INVESTORS IN DECEMBER IT WAS MEANT TO COMPENSATE THEM FOR LOSSES SUFFERED IN THE 1980S BY 130 LLOYD'S SYNDICATES WHOSE MANAGERS ARE ACCUSED OF NEGLIGENCE IT INCLUDED PAYMENTS FROM LLOYD'S CENTRAL FUND AND FROM ERRORS AND OMISSIONS INSURANCE TAKEN OUT BY LLOYD'S AGENTS THE AGENTS WHO RECRUIT INVESTORS FOR LLOYD'S SYNDICATES WOULD BE THE TARGET OF INVESTORS' LAWSUITS THE PLAN WAS SUPPORTED BY INVESTORS REPRESENTING ONLY 38 OF THE VALUE OF THE PROPOSED SETTLEMENT WELL BELOW THE 70 APPROVAL RATE LLOYD'S HAD REQUIRED THE LLOYD'S PLAN DID WIN A NARROW MAJORITY OF INVESTORS OF THE 23488 VOTING 12103 APPROVED THE PACKAGE THE PLAN APPEARED DOOMED FROM THE START AS COMMITTEES REPRESENTING THE INVESTORS KNOWN AS NAMES URGED MEMBERS TO REJECT IT THE PLAN COVERED ONLY ONETHIRD OF THE 27 BILLION OF LOSSES UNDER DISPUTE AND MADE NO PROVISION FOR FUTURE LOSSES UNDER THE SAME POLICIES THE PLAN ALSO WOULD HAVE MEANT THE SURRENDER OF INVESTORS' RIGHTS TO FILE LAWSUITS THE MORE THAN 31000 PRIVATE INVESTORS WHO HAVE UNLIMITED EXPOSURE TO LLOYD'S LOSSES MUST ALSO CONTEND WITH AN ANTICIPATED LOSS OF 205 BILLION FOR 1991 DUE TO BE REPORTED IN MAY LLOYD'S RESULTS ARE POSTED THREE YEARS IN ARREARS THAT WOULD BRING LLOYD'S LOSSES OVER A FOURYEAR PERIOD TO 75 BILLION LLOYD'S NOW HAS WITHDRAWN THE OFFER WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE SAID ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS LLOYD'S HAS OTHER PRIORITIES NOW ALTHOUGH LLOYD'S HAS SAID IT WON'T MAKE A RICHER OFFER INVESTOR GROUPS BELIEVE IT MAY BE BLUFFING A LEGAL BATTLE WHICH COULD LAST FIVE YEARS WOULD POSE BIG RISKS FOR INVESTORS THEY HAVE ALREADY SPENT SOME 100000 IN LEGAL COSTS WITHOUT CASES COMING TO COURT YET AND THERE'S NO CERTAINTY THAT THE COURTS WILL RULE IN THEIR FAVOR WITH THE MANAGING AGENTS THEMSELVES IN SHAKY FINANCIAL CONDITION THE INVESTORS MAY FIND THEMSELVES FIGHTING OVER A SMALL POT OF CASH THE NAMES HAVE CONVINCED THEMSELVES IN ALMOST ALL CASES THAT THEY HAVE A GOOD CASE BUT I DON'T THINK THEY'RE PAYING ENOUGH REGARD TO THE DIFFICULTY OF MAKING THEIR CASES STICK AND GETTING SOMETHING OUT OF IT MR PASCALL SAID DESPITE YEARS OF BAD PUBLICITY THE LLOYD'S MARKET HAS BEEN RECOVERING ITS COSTS HAVE FALLEN MANY OF ITS PREMIUM RATES HAVE INCREASED AND BECAUSE IT HAS ALLOWED CORPORATE INVESTMENT FOR THE FIRST TIME ITS UNDERWRITING CAPACITY HAS CLIMBED TO 109 BILLION THIS YEAR FROM 87 BILLION IN 1993 AND WITH THE ONCEWEALTHY NAMES FAILING TO WIN MUCH PUBLIC SYMPATHY SAYS MR PASCALL THEY COULD FIND THEMSELVES STEWING IN THEIR OWN JUICE 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 9402150027 940215 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY 11 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 FEDERAL REALTY INVESTMENT TRUST WILL REDEEM ON MARCH 31 1994 ITS 5 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 CITIBANK NEW YORK IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON MARCH 15 1994 450000000 PRINCIPAL AMOUNT OF ITS 87 MEDIUM TERM NOTES DUE MARCH 15 2001 GREAT AMERICAN COMMUNICATIONS CO WILL REDEEM ON FEB 18 1994 ITS 14 SENIOR EXTENDABLE PIK NOTES SERIES 1 AND 2 DUE JUNE 30 2001 SHAWMUT BANK CONNECTICUT IS TRUSTEE 9402150026 940215 REVIEW & OUTLOOK EDITORIAL ASIDES THANKS FOR ASKING THE METRIC SYSTEM IS FINE BY US IF IT'S FINE BY THE AMERICAN PEOPLE IT'S NOT OF COURSE SO THE GOVERNMENT IS PURSUING ITS HALLOWED TRADITION OF PASSING A LAW TO FORCEFEED ITS WILL THE FTC IS ABOUT TO REQUIRE PRODUCT LABELS TO INCLUDE BOTH ENGLISH UNITS AND METRIC EQUIVALENTS INDUSTRY SAYS FEW PEOPLE HAVE COMPLAINED ABOUT THE EXTRA COSTS WE'RE GLAD THEY ASKED 9402150025 940215 VIACOM APPEARS TO HAVE WON PARAMOUNT WAR BID IS SAID TO DRAW MORE THAN 60 OF THE SHARES IN CONTEST WITH QVC BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL VIACOM INC APPEARED TO GAIN VICTORY IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC RECEIVING THE MAJORITY OF PARAMOUNT SHARES REQUIRED TO WIN THE CONTEST ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE COUNT BY MIDEVENING YESTERDAY VIACOM'S OFFER OF ROUGHLY 10 BILLION FOR PARAMOUNT HAD ATTRACTED MORE THAN 60 OF PARAMOUNT'S SHARES ACCORDING TO TWO OF THE PEOPLE WELL IN EXCESS OF THE 501 NEEDED TO WIN UNDER BIDDING RULES AGREED TO BY VIACOM AND ITS BIDDING RIVAL QVC NETWORK INC IT APPEARED THAT QVC'S OFFER WAS SWAMPED IN THE TALLY RECEIVING LESS THAN 10 MILLION SHARES COMPARED WITH ROUGHLY 75 MILLION FOR VIACOM BARRING LASTMINUTE CHANGES IN THE COUNT WITHDRAWALS BY PARAMOUNT SHAREHOLDERS OR A COURT CHALLENGE BY QVC THE BIDDING RULES FOR THE PARAMOUNT AUCTION REQUIRE QVC TO WITHDRAW ITS OFFER AND BOW OUT THE DEADLINE FOR PARAMOUNT SHAREHOLDERS TO TENDER THEIR STOCK WAS 1201 AM TODAY QVC HAD NO OFFICIAL COMMENT BUT LATE LAST EVENING A HIGHLEVEL MEMBER OF THE QVC CAMP SAID THAT JUDGING FROM THE PAUCITY OF PARAMOUNT SHARES TENDERED TO THE HOMESHOPPING CONCERN VIACOM PRESUMABLY HAD PREVAILED IN THE STRUGGLE A SPOKESMAN FOR VIACOM SAID THE COMPANY WOULD HAVE NO OFFICIAL COMMENT UNTIL THIS MORNING ONE PERSON IN THE VIACOM CAMP SAID JUST LIKE ANY PRESIDENTIAL CANDIDATE WE'LL WAIT UNTIL ALL THE RETURNS ARE IN CALIFORNIA HASN'T COME IN YET THE VOTE FOR VIACOM WAS OVERWHELMING AMONG WALL STREET PROFESSIONALS DESPITE PERSONAL APPEALS FROM QVC CHAIRMAN BARRY DILLER THAT HIS OFFER PROVIDED SUPERIOR LONGTERM VALUE BASED ON HIS ABILITY TO CREATE GREATER VALUE FROM PARAMOUNT'S ASSETS THIS WAS AN ECONOMIC CONTEST NOT A POPULARITY CONTEST SAID ONE WALL STREET EXECUTIVE ONE OF PARAMOUNT'S BIGGEST SHAREHOLDERS MARIO GABELLI WHOSE GABELLI FUNDS INC OWNS FOUR MILLION SHARES OF PARAMOUNT SAID HE TENDERED HIS STOCK TO VIACOM BEFORE LAST NIGHT'S MIDNIGHT DEADLINE FOR PARAMOUNT SHAREHOLDERS TO CHOOSE BETWEEN THE TWO BIDS FIVE OTHER TAKEOVER STOCK TRADERS WHO SAID THEY EACH OWNED MORE THAN ONE MILLION PARAMOUNT SHARES BUT WHO ASKED NOT TO BE IDENTIFIED SAID THEY ALSO HAD TENDERED TO VIACOM A FEW TRADERS WITH A SMALLER NUMBER OF SHARES SAID THEY WERE BACKING QVC YESTERDAY QVC TOOK A STEP THAT APPEARED TO BE AIMED AT POSSIBLE FUTURE LITIGATION IF THE CONTEST WAS CLOSE OR VIACOM FAILED TO GAIN THE NEEDED 501 THE HOMESHOPPING COMPANY APPEALED TO PARAMOUNT'S BOARD TO RECONSIDER ITS RECOMMENDATION THAT SHAREHOLDERS ACCEPT THE VIACOM OFFER NOTING THAT THE QVC'S CASHANDSTOCK BID HAS RISEN IN VALUE ONE REASON THE QVC OFFER HAD GAINED IN VALUE IS THAT QVC WHICH ISSUED A STATEMENT SUNDAY VOWING NOT TO RAISE ITS BID WAS LOOKING LIKE THE LIKELY LOSER INVESTORS ASSUMING VIACOM WOULD WIN AND ISSUE MILLIONS OF NEW VIACOM SHARES TO ACQUIRE PARAMOUNT HAVE BEEN SELLING VIACOM STOCK AS A RESULT THE BOARD RESPONDED TO THE QVC REQUEST BY REAFFIRMING ITS RECOMMENDATION OF THE VIACOM BID YESTERDAY QVC STOCK ROSE 1625 TO 4850 A SHARE IN NASDAQ STOCK MARKET TRADING WHILE VIACOM CLASS B NONVOTING SHARES FELL 175 A SHARE TO 29875 ON THE AMERICAN STOCK EXCHANGE BOTH STOCKS MOVED IN RESPONSE TO QVC'S SUNDAY STATEMENT WHICH READ LIKE A CONCESSION OF DEFEAT SOME WALL STREET EXPERTS CONSIDER THE VIACOMQVC BATTLE FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT TO HAVE BEEN ONE OF THE GREATEST TAKEOVER BATTLES OF THE PAST 15 YEARS IT HAS PITTED FORMER PARAMOUNT STUDIO CHIEF BARRY DILLER NOW CHAIRMAN OF QVC AGAINST HIS FORMER BOSS PARAMOUNT CHAIRMAN MARTIN DAVIS AT THE BEGINNING OF THE BIDDING BATTLE MR DAVIS APPEARED TO HAVE NEGOTIATED A FRIENDLY DEAL WITH VIACOM IN ORDER TO KEEP HIS COMPANY OUT OF MR DILLER'S HANDS AND IT SAW MR DILLER AND VIACOM CHAIRMAN SUMNER REDSTONE NEGOTIATE SEVERAL BILLIONDOLLAR ALLIANCES WITH OTHER COMPANIES IN ORDER TO STRENGTHEN THEIR BALANCE SHEETS TO RAISE THEIR PARAMOUNT BIDS MR DILLER HOOKED UP WITH FIVE OTHER COMPANIES LED BY BELLSOUTH CORP WHICH AGREED TO INVEST 2 BILLION AND MR REDSTONE PUT TOGETHER AN 84 BILLION MERGER WITH BLOCKBUSTER ENTERTAINMENT CORP THEIR EFFORT WAS AIMED AT GAINING CONTROL OF THE LAST MAJOR INDEPENDENT HOLLYWOOD STUDIO AT A TIME WHEN COMPETING WOULDBE DISTRIBUTORS OF ENTERTAINMENT FROM CABLE TV COMPANIES TO REGIONAL BELL OPERATING COMPANIES ARE VYING FOR CONTROL OF PROGRAMMING IN ORDER TO GAIN AN EDGE FOR THEIR DISTRIBUTION SYSTEM AS THEIR COMPETING TECHNOLOGIES EVOLVE LAURA LANDRO CONTRIBUTED TO THIS ARTICLE 9402150024 940215 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 ANR PIPELINE CO 125 MILLION OF DEBENTURES DUE FEB 15 2024 PRICED AS 7375S AT 9928 TO YIELD 7435 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC ANR PIPELINE IS A UNIT OF COASTAL CORP BANQUE PARIBAS NEW YORK BRANCH 300 MILLION OF NOTES DUE MARCH 1 2009 PRICED AS 6875S AT 99215 TO YIELD 696 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 102 BASIS POINTS ABOVE THE 575 TREASURY MATURING IN AUGUST 2003 RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO FEDERAL FARM CREDIT BANK SYSTEM 100 MILLION OF MEDIUMTERM NOTES DUE FEB 22 1996 PRICED INITIALLY AT PAR TO YIELD 444 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NORTEK INC 190 MILLION OF SENIOR SUBORDINATED NOTES DUE MARCH 1 2004 PRICED AS 9875S AT 99214 TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED CAA BY MOODY'S AND TRIPLEC BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO BREED TECHNOLOGIES INC 28 MILLION COMMON SHARES PRICED AT 2850 EACH THROUGH UNDERWRITERS LED BY LAZARD FRERES INDIA FUND INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO HEALTHCARE REALTY TRUST INC 62 MILLION COMMON SHARES PRICED AT 21375 EACH ACCORDING TO THE COMPANY COMANAGERS OF THE UNDERWRITING GROUP ARE DONALDSON LUFKIN & JENRETTE SECURITIES CORP SMITH BARNEY SHEARSON INC AND EQUITABLE SECURITIES CORP ABB INTERNATIONAL FINANCE NV SWISSSWEDISH PARENT 200 BILLION ITALIAN LIRE OF 8125 EUROBONDS DUE MARCH 10 2004 AT ISSUE PRICE 10155 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 819 AFTER FEES KEEPWELL AGREEMENT WITH ABB ASEA BROWN BOVERI LTD FEES TWO CREDITO ITALIANO ITALY 200 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE MARCH 10 1999 AT ISSUE PRICE 10025 FOR OWN ACCOUNT REOFFERED AT 999 PAYABLE QUARTERLY AT 025 POINT OVER THREEMONTH LONDON INTERBANK OFFERED RATE FEES 05 CREDIT LOCAL DE FRANCE FRENCH AGENCY 250 MILLION CANADIAN DOLLARS OF 675 EUROBONDS DUE MARCH 21 2006 AT ISSUE PRICE 101 VIA PARIBAS CAPITAL MARKETS REOFFERED AT 99125 TO YIELD 686 A SPREAD OF 20 BASIS POINTS ABOVE 10YEAR CANADIAN GOVERNMENT ISSUE FEES 225 KOMMUNINVEST I SVERIGE AB SWEDISH AGENCY 100 MILLION OF 5625 EUROBONDS DUE MARCH 16 1999 AT ISSUE AND REOFFER PRICE 998 VIA FUJI INTERNATIONAL FINANCE PLC BONDS YIELD 567 A MARGIN OF 28 BASIS POINTS OVER COMPARABLE US TREASURY FEES 03 SUMITOMO HEAVY INDUSTRIES LTD JAPAN SIX BILLION YEN OF FLOATINGRATE EURONOTES DUE MARCH 10 1998 AT ISSUE PRICE 10025 VIA SUMITOMO FINANCE INTERNATIONAL PLC REOFFERED AT PAR PAYABLE QUARTERLY AT THREEMONTH LIBOR PLUS 425 BASIS POINTS PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPT 10 IF STOCKHOLDERS' EQUITY FALLS BELOW 20 BILLION YEN FEES 03 SUMITOMO HEAVY INDUSTRIES LTD JAPAN SIX BILLION YEN OF 34 EUROBONDS DUE JUNE 3 1998 AT ISSUE PRICE 10145 VIA DAIWA EUROPE LTD REOFFERED AT 100125 TO YIELD 3365 PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPT 10 IF STOCKHOLDERS' EQUITY FALLS BELOW 20 BILLION YEN FEES 1625 9402150023 940215 BUSINESS BRIEF ZALE CORP EARNINGS TURNAROUND POSTED FOR FISCAL THIRD QUARTER SAMESTORE SALES ROSE ONLY SLIGHTLY AND PROFIT MARGINS FELL BUT ZALE CORP DALLAS REPORTED AN EARNINGS TURNAROUND IN ITS FISCAL THIRD QUARTER THE NATION'S LARGEST JEWELRY RETAILER REPORTED NET INCOME OF 416 MILLION OR 119 A SHARE IN THE DEC 31 PERIOD ITS FIRST FULL QUARTER SINCE EMERGING FROM BANKRUPTCYCOURT PROCEEDINGS THAT COMPARED WITH A YEAREARLIER LOSS OF 178 MILLION THE COMPANY SAID YEAREARLIER PERSHARE FIGURES WEREN'T COMPARABLE BECAUSE ITS OLD STOCK WAS CANCELED UNDER THE REORGANIZATION PLAN THAT TOOK EFFECT JULY 30 THE YEAREARLIER LOSS RESULTED LARGELY FROM RESTRUCTURING COSTS OF 921 MILLION INCLUDING 417 MILLION TO COVER THE CLOSING OF 175 STORES IN EARLY 1993 THE REASON THERE WAS AN IMPROVEMENT WAS BECAUSE OF THAT CHARGE MERRILL WERTHEIMER THE COMPANY'S CONTROLLER SAID SAMESTORE SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE ONLY 16 IN THE QUARTER FROM A YEAR EARLIER OVERALL SALES DECLINED 7 TO 3965 MILLION FROM 4282 MILLION PRIMARILY BECAUSE OF STORE CLOSINGS ZALE'S MARGINS FELL TO 369 FROM 372 A YEAR EARLIER MR WERTHEIMER SAID 9402150022 940215 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DETROIT TOOL & ENGINEERING CO NEWLY NAMED DT INDUSTRIES INC AN INITIAL OFFERING OF 45 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF 675000 SHARES VIA CS FIRST BOSTON CORP MORGAN STANLEY & CO AND WILLIAM SCHRODER & CO FABWEL INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 375000 SHARES VIA MCDONALD & CO SECURITIES INC AND NATWEST SECURITIES LTD FIRST ALERT INC AN INITIAL OFFERING OF AS MANY AS 57 MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC AND MORGAN STANLEY GULF SOUTH MEDICAL SUPPLY INC AN INITIAL OFFERING OF 1950000 COMMON SHARES VIA WILLIAM BLAIR & CO AND MONTGOMERY SECURITIES INTERNATIONAL CONTROLS CORP AN OFFERING OF AS MUCH AS 225 MILLION OF SENIOR SECURED NOTES VIA ALEX BROWN & SONS INC AND SPP HAMBRO & CO JB POINDEXTER & CO AN OFFERING OF AS MUCH AS 125 MILLION OF SENIOR NOTES VIA MORGAN STANLEY NUMAR CORP AN INITIAL OFFERING OF 18 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 270000 SHARES VIA WERTHEIM SCHRODER & CO AND SIMMONS & CO INTERNATIONAL SCIENTIFIC GAMES HOLDING CORP AN OFFERING OF 2579205 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 386880 ADDITIONAL VIA ROBINSONHUMPHREY CO SALOMON BROTHERS INC AND RAYMOND JAMES & ASSOCIATES INC 9402150021 940215 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN CORPORATE JARGON IF YOU DON'T KNOW THE INSIDE SKINNY IT CAN BE A JUMBLE AT COORS CO NEW BEERS ARE REFERRED TO AS THE LIQUID AS IN THE PROBLEM WASN'T THE MARKETING BUT THE LIQUID AT MICROSOFT CORP EXECUTIVES REFER TO AN EMPLOYEE'S BANDWIDTH SOMETIMES OFFERING THAT GUY DOESN'T HAVE THE BANDWIDTH TO HANDLE THAT PROJECT NOTES COMPUTER CONSULTANT CHERYL CURRID ONE FOR LINGUISTS TO CRINGE OVER A NEW VERB INCENTIVIZE MEANING TO REVISE PAY ARRANGEMENTS FOR MANAGERS COMPANIES COME UP WITH DERIVATIONS OF THEIR NAMES AT WALMART STORES INC EXECUTIVES WALMARTIZE EMPLOYEES AT FIRMS THEY ACQUIRE THAT IS TRAIN THEM TO SMILE OFTEN AND OFFER EXTRA SERVICE AT INTEL CORP OFFICIALS USE THE IZE FORMULATION FOR TRYING TO GET INVOLVED IN A NEW BUSINESS THESE DAYS THE COMPANY IS TRYING TO INTELLIZE THE VIDEOTELECONFERENCING INDUSTRY NEW YORK MARKETING CONSULTANT FRED PFAFF WHO USES INCENTIVIZE IN SPEECHES WONDERS WHAT WOULD MISS ADCOCK MY FIRSTGRADE TEACHER SAY A JURY OF YOUR BIGFIRM PEERS JURY DUTY GIVES SMALL EMPLOYERS HEADACHES SMALLBUSINESS OWNERS OFTEN SCRAMBLE TO KEEP THEMSELVES OR KEY WORKERS OUT OF THE JURY BOX CRAIG HATKOFF A PRINCIPAL IN THE NEW YORK REALESTATE FIRM VICTOR CAPITAL GROUP IS BATTLING THE STATE AFTER FIVE POSTPONEMENTS THERE'S NEVER A CONVENIENT TIME FOR A SMALL BUSINESS HE SAYS NEW YORK RESTAURATEUR JEFF BLISS WENT BEFORE AN ADMINISTRATIVE CLERK TO GET A CHEF AT TRENDY MESA GRILL OUT OF HIS ASSIGNMENT ON THE FINAL SUMMONS SLIGHTLY LARGER WORKPLACES USE A VARIETY OF FILLINS FOR WORKERS DOING THEIR CIVIC DUTY MILLER TOOL & DIE OF JACKSON MICH CROSSTRAINS ITS 80 EMPLOYEES TO SUBSTITUTE FOR KEY WORKERS GALA HALLMARK IN DEARBORN MICH USES COLLEGE STUDENTS AND OTHER PARTTIMERS TO KEEP THINGS RUNNING UNIONS TRY TO REGAIN THEIR EDGE ON HEALTH CARE AFTER A SLOW START BITTERNESS OVER NAFTA CRIMPS THEIR FINANCIAL CONTRIBUTIONS TO HEALTHCARE REFORM AND THEY HAVE DONE LITTLE ASIDE FROM TRAINING CAMPAIGN COORDINATORS HEALTHCARE CAMPAIGN COFFERS COLLECT JUST OVER 1 MILLION SO FAR AN AMOUNT EXPECTED BY THE END OF LAST YEAR THE HEALTH CARE REFORM PROJECT THE ADVERTISING CAMPAIGN FINANCED IN PART BY LABOR IS BEING OUTSPENT 7 TO 1 BY THE HEALTHCARE INDUSTRY FIGHTING THE CLINTON PLAN SAYS AFLCIO'S REX HARDESTY UNIONS SAY THEY HAVE HELD OFF INTENTIONALLY AND NOW WILL PICK UP THE PACE THEY EXPECT TO SEND OUT 360000 PIECES OF DIRECT MAIL TO CONSTITUENTS OF 72 KEY MEMBERS OF CONGRESS DURING THE PRESIDENT'S DAY RECESS RADIO ADS WILL RUN IN SWING DISTRICTS WE'RE REALLY INTO OUR LOBBYING EFFORT NOW SAYS JOANNA REAGAN POLITICAL DIRECTOR FOR THE BRICKLAYERS' UNION UNION LETTERS TO THEIR MEMBERS WILL CRITICIZE IN PARTICULAR THE COMPETING PLAN OFFERED BY TENNESSEE DEMOCRATIC REP JIM COOPER WANT A COMMITTED WORKER HIRE A NEW ONE EMPLOYEES GROW MUCH LESS LOYAL AFTER TWO YEARS ON THE JOB SAYS A STUDY OF YOUNG MANAGERS BY RESEARCHERS AT NEW YORK UNIVERSITY AND NORTHWESTERN UNIVERSITY EXPERIENCED WORKERS ALSO FEEL THEY DESERVE FASTER PROMOTIONS AND HIGH PAY ACCORDING TO THE STUDY IN THE ACADEMY OF MANAGEMENT JOURNAL FOR LIGHTER FINES PUT OUT THE WELCOME MAT FOR SAFETY INSPECTORS A REVIEW OF OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION DATA BY OSHA DATA OF MORRISTOWN NJ SHOWS COMPANIES THAT INITIALLY DENIED ACCESS TO OSHA INSPECTORS WERE CHARGED WITH ALMOST TWICE AS MANY VIOLATIONS PER INSPECTION AND THE SAFETY AGENCY SOUGHT FINES AGAINST THEM NEARLY DOUBLE THOSE AGAINST MORE COOPERATIVE FIRMS SPLIT DECISION A HARRIS POLL SHOWS THREEQUARTERS OF AMERICANS BELIEVE THAT UNIONS IMPROVE WAGES AND WORKING CONDITIONS BUT 70 SAY UNIONS ARE TOO INVOLVED IN POLITICAL ACTIVITIES AND NEARLY TWOTHIRDS THINK UNIONS FIGHT HARDER AGAINST CHANGE THAN FOR IT TELECOMMUTING GETS A BOOST FROM THE LOS ANGELES EARTHQUAKE THE BATTERED HIGHWAYS BECOME A MARKETING TOOL PACIFIC BELL SIGNS UP 1490 NEW CUSTOMERS FOR SERVICES SUCH AS VOICE MAIL AND CALL WAITING HEAVILY DAMAGED CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE SETS UP SPACE FOR 1000 TELECOMMUTERS TO USE SEMIREMOTE SERVICES THEY CAN TRAVEL A SHORT DISTANCE TO THE CAMPUS AVOIDING DRIVING ALL THE WAY TO THEIR OFFICES A TELECOMMUTING CENTER THAT NEWHALL LAND & FARMING CO SET UP IN VALENCIA BEFORE THE QUAKE HAS LURED SO MANY CUSTOMERS THAT THE COMPANY PLANS TO BUILD AGAIN NEWHALL PARTNER STEVE VALENZIANO PREDICTS THAT THE DEMAND FOR OUR SPACE WILL FALL OFF IN THE NEXT YEAR OR SO BUT EVEN AFTER THE FREEWAYS ARE BACK IN ACTION HE SAYS SOME COMPANIES ARE GOING TO WANT TO CONTINUE TO DO IT TO SOME EXTENT EVEN ADVOCATES WONDER IF THE TREND WILL CONTINUE ONCE THE HIGHWAYS ARE FIXED A PAC BELL SPOKESMAN SAYS TELECOMMUTING WORKS THOUGH IT'S UNCLEAR HOW MANY NEW USERS WILL BE TELECOMMUTING A YEAR FROM NOW THE CHECKOFF EXECUTIVE RECRUITERS SURVEYED BY NEWSLETTER WORKPLACE AMERICA RECEIVED A RECORD 16 MILLION RESUMES IN THE PAST YEAR THEY HAD ONLY 11900 POSITIONS TO FILL RESUMES WE NEVER FINISHED READING AN APPLICANT TO THIS NEWSPAPER WRITES I WOULD LIKE TO BE CONSIDERED FOR A PHOTOGRAPHY POSITION 9402150020 940215 ABREAST OF THE MARKET STOCKS MIXED AS DOLLAR BONDS FALL ON USJAPAN TRADE DISPUTE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES WERE MIXED AS FEARS OF TRADE WAR BETWEEN THE US AND JAPAN RATTLED FINANCIAL MARKETS THE US DOLLAR PLUNGED ALMOST FIVE YEN AGAINST THE JAPANESE CURRENCY WHILE THE TREASURY'S 30YEAR BOND LOST MORE THAN 1/2 POINT LIFTING ITS YIELD TO 645 ALL IN REACTION TO FRIDAY'S COLLAPSE OF USJAPAN TRADE TALKS STOCKS FARED BETTER BUT STILL POSTED A LACKLUSTER PERFORMANCE THE DOW JONES INDUSTRIAL AVERAGE ADDED 928 OR 024 TO 390406 WHILE BROADBASED BAROMETERS OF ACTION ON THE NEW YORK STOCK EXCHANGE BARELY MOVED NEARLY HALF OF THE DOW'S GAIN CAME FROM ONE STOCK UNITED TECHNOLOGIES WHICH RALLIED 2 TO 67 3/8 ADVANCING BIG BOARD ISSUES NARROWLY LED DECLINERS 1134 TO 1029 VOLUME ON THE EXCHANGE WAS MODERATELY ACTIVE AT ABOUT 2631 MILLION SHARES JUST 2118 MILLION TRADED FRIDAY BUT THAT SESSION CLOSED EARLY BECAUSE OF SEVERE WINTER WEATHER CONDITIONS IN THE NORTHEAST YESTERDAY'S WAS THE FIRST FULL SESSION SINCE JAN 24 THAT VOLUME DIDN'T TOP THE ACTIVE 300 MILLION MARK STOCKS STARTED THE DAY HIGHER PUSHING THE DOW INDUSTRIALS TO A GAIN OF MORE THAN 25 POINTS AROUND MIDDAY BUT THE OPTIMISM EVAPORATED AS THE DOLLAR'S DECLINE INTENSIFIED AND BONDS TURNED DECIDEDLY LOWER THE STANDARD & POOR'S 500 STOCK INDEX INCHED UP 005 OR 001 TO 47023 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 005 OR 02 TO 26126 THE NASDAQ COMPOSITE INDEX HOWEVER JUMPED 406 OR 052 TO 78545 TECHNOLOGY STOCKS PLAYED A LARGE ROLE WITH LOTUS DEVELOPMENT UP 2 1/2 TO 58 1/4 MICROSOFT UP 3/8 TO 79 1/8 AND ORACLE SYSTEMS UP 1 TO 32 3/4 INSURANCE STOCKS ALSO WERE STRONG THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST 232 OR 049 TO 47491 PARAMOUNT COMMUNICATIONS LOST 3/4 TO 76 1/8 QVC NETWORK RULED OUT CHANGING ITS 10 BILLION OFFER FOR THE GIANT NEW YORK MEDIA COMPANY INCREASING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM THE DEADLINE FOR BOTH OFFERS WAS 1201 AM TODAY QVC SHARES JUMPED 1 5/8 TO 48 1/2 ON THE NASDAQ STOCK MARKET WHILE VIACOM CLASS B SKIDDED 1 3/4 TO 29 ON THE AMEX MEANWHILE BLOCKBUSTER ENTERTAINMENT DROPPED TO 24 ON THE BIG BOARD IT HAS AGREED TO MERGE WITH VIACOM BELLSOUTH WHICH IS BACKING QVC LOST 1 1/4 TO 56 CANADIAN PACIFIC DROPPED 1 TO 16 3/4 AFTER THE RAILROAD COMPANY IN MONTREAL SAID IT PLANS TO SELL 22 MILLION ORDINARY SHARES THROUGH AN UNDERWRITTEN OFFERING THE SALE WILL GENERATE 484 MILLION CANADIAN DOLLARS US3603 MILLION IN PROCEEDS FOR THE COMPANY IT EXPECTS TO COMPLETE THE SALE NEXT MONTH PRECIOUSMETALS STOCKS JUMPED ALONG WITH THE PRICE OF GOLD NEWMONT MINING JUMPED 1 1/8 TO 53 1/8 HOMESTAKE MINING INCREASED 1/2 TO 22 AND ON THE AMEX ECHO BAY MINES ADDED 1/4 TO 12 1/2 GOLD FOR APRIL DELIVERY INCREASED 390 TO 38560 AN OUNCE IN NEW YORK AETNA LIFE & CASUALTY JUMPED 1 5/8 TO 64 3/8 RONALD COMPTON CHAIRMAN OF THE HARTFORD CONN INSURER SAID HE EXPECTS THE COMPANY TO POST OPERATING EARNINGS OF 650 A SHARE THIS YEAR REVERSING A LOSS FROM CONTINUING OPERATIONS OF 554 IN 1993 SCIMED LIFE SYSTEMS SKIDDED 2 5/8 TO 39 5/8 THE MEDICALDEVICE MAKER IN MAPLE GROVE MINN SAID ITS RESULTS FOR THE FOURTH QUARTER THAT ENDS FEB 28 HAVE BEEN DEPRESSED BY LOWERTHANEXPECTED SALES IN JAPAN IT BLAMED THE SHORTFALL ON HIGHINVENTORY LEVELS AT HOSPITALS IN JAPAN AND PREDICTED IMPROVED SALES THERE LATER IN ITS 1995 FISCAL YEAR MCN INCREASED 1 1/8 TO 38 1/2 THE DETROIT COMPANY'S MICHIGAN CONSOLIDATED GAS UNIT IS SEEKING PERMISSION FROM STATE REGULATORS TO BUILD PIPELINE FACILITIES THAT WILL BE USED TO SERVE A NATURALGAS COGENERATION PLANT AT A DOW CHEMICAL SITE DOW CHEMICAL WAS UP 1/4 TO 63 3/4 MINNESOTA MINING & MANUFACTURING INCREASED 1 TO 105 7/8 AFTER THE ST PAUL MINN COMPANY DECLARED A 2FOR1 STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND THE PAYOUT WAS RAISED TO 88 CENTS FROM 83 CENTS ON A PRESPLIT BASIS IN ADDITION THE COMPANY SAID IT WILL REPURCHASE UP TO 12 MILLION PRESPLIT SHARES JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID THE DOLLAR'S BIG SELLOFF IS TROUBLING FOR TWO MAJOR REASONS FIRST WEAKNESS IN THE CURRENCY COULD INCREASE INFLATIONARY PRESSURES IN THE US ECONOMY SECOND IT COULD CAUSE JAPANESE INVESTORS TO LIQUIDATE POSITIONS IN US STOCKS AND BONDS RISING RATES AND A WEAKENING DOLLAR WERE TWO OF THE INGREDIENTS THAT SET OFF THE 1987 STOCKMARKET CRASH ANALYSTS DON'T THINK THE MARKET SITUATION NOW IS THAT PRECARIOUS BUT THE SEVERE WEAKNESS IN THE DOLLAR IS CERTAINLY SERIOUS IF IT CONTINUES SAID ARGUS'S MR SOLLOWAY A VERY WEAK DOLLAR IS IN NOBODY'S INTEREST MEANWHILE PAUL RABBITT QUANTITATIVE ANALYST AT OPPENHEIMER & CO SAID HE DOESN'T EXPECT INTEREST RATES TO RISE TO A LEVEL THAT WOULD ENTICE PEOPLE TO BUY INTERESTBEARING INVESTMENTS INSTEAD OF STOCKS INVESTORS WON'T SHUN STOCKS UNTIL SHORTTERM RATES ADVANCE TO BETWEEN 37 AND 4 FROM AROUND 33 NOW UNITED TECHNOLOGIES ADVANCED AFTER MORGAN STANLEY & CO LIFTED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD ANALYST JENNIFER A POKRZYWINSKI IN PART CITED THE HARTFORD CONN AEROSPACE COMPANY'S PLAN DISCLOSED FRIDAY TO SELL ITS NONCORE ASSETS AN INITIAL OFFERING OF 34 MILLION COMMON SHARES OF INDIA FUND INC WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO THE INDIA FUND IS A CLOSEDEND MUTUAL FUND 9402150019 940215 REVIEW & OUTLOOK EDITORIAL SPOTTED POLS FEDERAL JUDGE WILLIAM DWYER IS BEST KNOWN FOR BANNING THE SALE OF PACIFIC NORTHWEST TIMBER TO PROTECT THE SPOTTED OWL NOW HE HAS BECOME THE JUDICIAL PROTECTOR OF ANOTHER CONTROVERSIAL ENDANGERED SPECIES INCUMBENT MEMBERS OF CONGRESS HE HAS DECLARED THAT THEIR CHIEF HABITAT CAPITOL HILL CAN'T BE DISTURBED BY A MAJORITY OF VOTERS WHO WANT MORE THINNING OF THE DEADWOOD THEY SEE THERE LAST WEEK JUDGE DWYER ISSUED A SWEEPING RULING THAT THE TERM LIMIT LAW PASSED BY WASHINGTON STATE IN 1992 VIOLATED NOT ONLY THE CONSTITUTION BUT THE FIRST AND 14TH AMENDMENTS AS WELL AN APPEAL WILL BE FILED AND IS LIKELY TO REACH THE US SUPREME COURT NEXT YEAR HOUSE SPEAKER TOM FOLEY HAS BEEN THE PRIME MOVER BEHIND THE LITIGATION TO BLOCK TERM LIMITS IN HIS HOME STATE THERE ARE MANY ARGUMENTS AGAINST TERM LIMITS BUT THE ONE THAT HOLDS THEY VIOLATE THE FIRST AND 14TH AMENDMENTS IS FRANKLY A STRETCH USING THAT LOGIC TERM LIMIT LAWS THAT HAVE RESTRICTED MORE THAN HALF THE NATION'S GOVERNORS FOR DECADES WOULD HAVE TO BE FOUND UNCONSTITUTIONAL STILL SUCH ARGUMENTS WERE USED IN 1991 WHEN CALIFORNIA ASSEMBLY SPEAKER WILLIE BROWN CLAIMED HIS STATE'S TERM LIMIT LAW DISCRIMINATED AGAINST INCUMBENTS AND THEREBY VIOLATED THEIR RIGHT TO EQUAL PROTECTION OF THE LAWS UNDER THE 14TH AMENDMENT SPEAKER BROWN FURTHER CLAIMED THAT TERM LIMITS VIOLATED THE ASSOCIATIONAL RIGHTS GUARANTEED BY THE FIRST AMENDMENT CALIFORNIA'S SUPREME COURT REJECTED ALL OF MR BROWN'S ARGUMENTS IN A 6TO1 DECISION UPHOLDING TERM LIMITS IT SAID THAT THERE WAS NO REASON WHY GOVERNORS SHOULD HAVE A LIMIT IMPOSED ON THEM WHILE STATE LEGISLATORS WERE ALLOWED PERMANENT TENURE IT NOTED THAT CURRENT INCUMBENT PROTECTIONS MEAN TERM LIMITS MAY GIVE VOTERS A GREATER CHOICE THAN THEY HAVE NOW IT ALSO FOUND THAT TERM LIMITS ALLOW VOTERS TO FREELY ASSOCIATE WITH OTHERS TO ADVANCE THEIR BELIEFS OR SUPPORT A TERMLIMITED INCUMBENT FOR ANOTHER OFFICE JUDGE DWYER'S DECISION COMPLETELY CONTRADICTS THE CALIFORNIA COURT AND WILL BE HOTLY ARGUED ON APPEAL HE FLATLY DECLARES THAT STATE TERM LIMITS UNCONSTITUTIONALLY ADD TO THE AGE RESIDENCY AND CITIZENSHIP QUALIFICATIONS IN THE CONSTITUTION BUT POWELL V MCCORMACK THE 1969 SUPREME COURT DECISION HE RELIES ON HELD ONLY THAT CONGRESS COULDN'T ADD TO THE QUALIFICATIONS SINCE THEN THE SUPREME COURT HAS FREQUENTLY UPHELD MANY STATE LAWS RESTRICTING WHO CAN RUN FOR OFFICE GRIFFIN BELL WHO WAS JIMMY CARTER'S ATTORNEY GENERAL AND WAS LEAD COUNSEL FOR THE TERM LIMITS FORCES ISN'T SURPRISED BY JUDGE DWYER'S RULING THE SAME HIGH COURT THAT'S ALLOWED STATES IN THE PAST TO CONTROL THEIR OWN ELECTIONS WILL ACT LIKEWISE WHEN THIS CASE REACHES THEM HE SAYS MEANWHILE THERE'S A CHANCE THAT SPEAKER FOLEY MAY NOT EVEN BE REPRESENTING HIS DISTRICT WHEN HIS 1998 TERM LIMIT KICKS IN IN 1992 MR FOLEY WON WITH ONLY 55 OF THE VOTE AND A NEW FABRIZIO/MCLAUGHLIN POLL OF HIS DISTRICT FINDS ONLY 43 OF RESPONDENTS BELIEVE HE DESERVES REELECTION A STUNNING 74 BELIEVE SPEAKER FOLEY SHOULD DROP HIS SUIT TO OVERTURN THE VOTERS' PREFERENCE FOR TERM LIMITS INCUMBENTS WHO VIEW JUDGE DWYER'S RULING AS AN ALLCLEAR SIGNAL SHOULD THINK AGAIN MOST CAREER POLITICIANS AREN'T CUTE LIKE SPOTTED OWLS AND MOST JUDGES AND VOTERS AREN'T BOTHERED BY THE THOUGHT OF ENDANGERING THESE POLS FEW TEARS WILL BE SHED WHEN THEY'RE FORCED OUT FROM THEIR SANCTUARY AND RETURNED TO THE WILDS OF REAL LIFE 9402150018 940215 BUSINESS BRIEF FOKKER NV WORK FORCE TO BE REDUCED BY ABOUT 1900 JOBS IN '94 FOKKER NV SAID IT WILL CUT AROUND 1900 JOBS IN 1994 AS PART OF A RESTRUCTURING PLAN ANNOUNCED THIS MONTH THE AMSTERDAM AEROSPACE COMPANY ALSO SAID IT WILL REDUCE PRODUCTION TO ABOUT 40 AIRCRAFT A YEAR FROM ITS CURRENT ANNUAL PRODUCTION OF AROUND 60 EVEN WITH THE DEEP JOB CUTS SOME STOCK ANALYSTS SAY THEY DON'T EXPECT FOKKER TO SWING BACK INTO THE BLACK BEFORE 1997 AND AFTER THAT THEY SEE LITTLE PROSPECT FOR STRONG PROFIT GAINS THE COMPANY SAID THAT THE REMAINING WORK FORCE AFTER THE CUT OF 1900 JOBS WILL TOTAL SLIGHTLY MORE THAN 10000 PEOPLE FOKKER IS 51CONTROLLED BY THE DEUTSCHE AEROSPACE AG ARM OF GERMANY'S DAIMLERBENZ AG 9402150017 940215 BUSINESS BRIEF MAGMA COPPER CO RESERVES OF COPPER ORE RISE BY 25 AT MINE IN NEVADA MAGMA COPPER CO SAID IT INCREASED THE RESERVES OF COPPER ORE AT ITS PENDING ROBINSON MINE NEAR ELY NEV BY 25 TO 252 MILLION TONS OF ORE THE INCREASE BOOSTS RESERVES AT THE MINE SITE TO 21 BILLION POUNDS OF RECOVERABLE COPPER AND 19 MILLION OUNCES OF GOLD THE TUCSON COMPANY BOOSTED ITS TOTAL COPPER RESERVES BY 50 OVER 1993 TO 77 BILLION POUNDS ON JAN 1 1994 FROM 5 BILLION POUNDS ON JANUARY 1 1993 MAGMA RELEASED THE RESERVE NUMBERS AS PART OF THE GROWTH STORY IT WILL BEGIN SPREADING TO ANALYSTS IN MEETINGS TODAY WE'RE A COMPANY THAT'S HAD LIMITED RESERVES AND INCREASING ORE PRODUCTION SAID PRESIDENT AND CHIEF EXECUTIVE J BURGESS WINTER IN AN INTERVIEW WE'RE EXCITED ABOUT THIS INCREASE IN RESERVES 9402150016 940215 BUSINESS BRIEF HARCOURT GENERAL'S STREAMLINING PLAN MAY SPUR SALE OF INSURANCE BUSINESSES NEWTON MASS HARCOURT GENERAL INC IS CONSIDERING THE SALE OF ITS INSURANCE BUSINESSES AS PART OF A PLAN TO STREAMLINE THE COMPANY AND FOCUS ON PUBLISHING THE MOVE FOLLOWS A SPINOFF OF HARCOURT'S MOVIETHEATER BUSINESS TO SHAREHOLDERS LAST SEPTEMBER THE INSURANCE BUSINESSES WITH 330 MILLION IN ASSETS COULD SELL FOR 400 MILLION OR MORE ANALYSTS SAID HARCOURT WHOSE 366 BILLION IN ANNUAL REVENUE COMES PRIMARILY FROM PUBLISHING AND SPECIALTY RETAILING ACQUIRED THE INSURANCE BUSINESSES AS PART OF ITS PURCHASE OF PUBLISHER HARCOURT BRACE IN NOVEMBER 1991 THE INSURANCE BUSINESSES WHICH PRIMARILY UNDERWRITE INDIVIDUAL LIFE HEALTH ACCIDENT AND CREDIT INSURANCE POLICIES AND SELL ANNUITY PRODUCTS CONTRIBUTED 548 MILLION TO HARCOURT'S 1993 REVENUE AND 709 MILLION TO OPERATING PROFIT INCLUDING 277 MILLION IN CAPITAL GAINS IN FISCAL 1993 ENDED OCT 31 HARCOURT GENERAL HAD OPERATING PROFIT OF 3143 MILLION MARTIN ROMM AN ANALYST AT CS FIRST BOSTON INC SAID A SALE OF THE INSURANCE COMPANIES WOULD BE A POSITIVE STEP BECAUSE HARCOURT DOESN'T INTEND TO ENLARGE THE BUSINESSES A SALE WOULD CONVERT THE BUSINESSES TO CASH THE MARKET WILL GIVE HARCOURT CREDIT FOR THAT MR ROMM SAID HARCOURT GENERAL SAID LAST DECEMBER IT MIGHT SELL THE OPERATIONS IF AN ATTRACTIVE PUBLISHING ACQUISITION CAME ALONG THAT REQUIRED ADDITIONAL FUNDS THE COMPANY WASN'T FREE TO SELL THE INSURANCE UNIT UNTIL NOVEMBER 1993 BECAUSE OF TAX CONSIDERATIONS AND PLEDGES THAT IT MADE TO STATE INSURANCE COMMISSIONERS AT THE TIME OF THE HARCOURT BRACE ACQUISITION IT SAID PETER FARWELL A HARCOURT SPOKESMAN SAID THAT WHILE THE COMPANY IS LOOKING AGGRESSIVELY FOR INVESTMENT OPPORTUNITIES IN PUBLISHING NO DEALS ARE PENDING THE INSURANCE BUSINESSES BASED IN ORLANDO FLA INCLUDE FEDERAL HOME LIFE INSURANCE CO PHF LIFE INSURANCE CO AND THE HARVEST LIFE INSURANCE CO HARCOURT GENERAL INC'S INSURANCE BUSINESSES HAVE 32 BILLION IN ASSETS NOT 330 MILLION AS STATED IN AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION 9402150015 940215 TEXAS INVESTOR FILES REIT SHARE OFFERING FORT WORTH TEXAS RICHARD RAINWATER A WELLKNOWN TEXAS INVESTOR FILED A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 13350000 SHARES IN A REAL ESTATE INVESTMENT TRUST AT 25 A SHARE THE SHARES WILL REPRESENT 663 OF THE EQUITY IN THE REIT THE BALANCE WILL BE HELD BY MANAGEMENT AND INVESTORS WHO CONTRIBUTE PROPERTIES TO THE TRUST THE TRUST CRESCENT REAL ESTATE EQUITIES INC WILL OWN UPSCALE RETAIL CENTERS OFFICE BUILDINGS AND SINGLEFAMILY SUBDIVISIONS IN DENVER AND TEXAS THE FILING REPORTED THAT THE COMPANY WILL HAVE SUBSTANTIALLY NO DEBT FOLLOWING THE 335 MILLION OFFERING AND WILL HAVE A 300 MILLION LINE OF CREDIT THE FILING SAID 2437 MILLION OF THE PROCEEDS WILL BE USED TO REPAY DEBT SECURED BY MR RAINWATER AND BY PROPERTIES THAT WILL BE HELD BY THE REIT ABOUT 75 MILLION RAISED BY THE FORMATION OF RESIDENTIAL DEVELOPMENT CORPORATIONS WILL BE USED TO PAY THE TAXES INCURRED AS CURRENT INVESTORS OF THE PROPERTIES TRANSFER THEIR HOLDINGS TO THE REITS THE CURRENT INVESTORS INCLUDE MR RAINWATER ROSEWOOD GROUP AND A LONG LIST OF INDIVIDUALS MR RAINWATER'S FORMATION OF A REIT WAS EXPECTED AND IS PART OF A RUSH OF REITS THAT HAVE COME ON THE MARKET OVER THE PAST YEAR OR SO LOW INTEREST RATES ON MONEY MARKETS HAVE SENT INVESTORS SCRAMBLING FOR ALTERNATIVE INVESTMENTS WITH HIGHER YIELDS AND REITS HAVE BEEN OFFERING DIVIDEND YIELDS OF 65 OR MORE 9402150014 940215 INTERNATIONAL NORWEGIAN TRADE SURPLUS OSLO NORWAY'S TRADE SURPLUS NARROWED 17 TO 46 BILLION KRONER 6081 MILLION IN JANUARY FROM 56 BILLION KRONER A YEAR EARLIER STATISTICS NORWAY THE NORWEGIAN STATISTICAL AGENCY SAID 9402150013 940215 INTERNATIONAL BRIEF LWT HOLDINGS PLC SHAREHOLDERS URGED TO REJECT GRANADA OFFER AS TOO LOW THE BOARD OF LWT HOLDINGS PLC A BRITISH TELEVISION CONCERN URGED SHAREHOLDERS TO REJECT THE FINAL HOSTILE TAKEOVER OFFER OF LEISURE CONCERN GRANADA GROUP PLC AS TOO LOW LWT ALSO AGAIN QUESTIONED GRANADA'S MOTIVES A FREQUENT DEFENSE DURING THE TWOMONTH BATTLE GRANADA NEEDS TO BUY LWT'S EARNINGS TO OFFSET THE LONGTERM DECLINE IN ITS TELEVISION RENTAL BUSINESS IT SAID GRANADA IS OFFERING 13 NEW GRANADA SHARES FOR EVERY 10 LWT SHARES PLUS A SMALL AMOUNT OF CASH VALUING THE TARGET AT 776 MILLION 113 BILLION 9402150012 940215 WHO'S NEWS PACE PLANS TO DISMISS TWO TOP EXECUTIVES AMID FINANCIAL PROBE TUCSON ARIZ PACE AMERICAN GROUP INC SAID IT NOTIFIED TWO TOP EXECUTIVES IT INTENDS TO DISMISS THEM BECAUSE AN INTERNAL INVESTIGATION FOUND EVIDENCE OF SELFDEALING AND UNDISCLOSED FINANCIAL RELATIONSHIPS THE EXECUTIVES ARE DON H PACE COFOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GREG S KAPLAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR PACE BELIEVES THAT HE IS BEING TREATED UNFAIRLY BY THE COMPANY AND THAT THE ACTIONS OF THE COMPANY ARE BEING MOTIVATED BY BAD FAITH AND ARE NOT IN THE BEST INTERESTS OF SHAREHOLDERS SAID HIS LAWYER PAUL FISCHER OF WASHINGTON DC MR KAPLAN'S LAWYER WILLIAM G WALKER SAID MR KAPLAN IS LEGALLY AND ETHICALLY INNOCENT OF ANY WRONGDOING ALL OF HIS ACTIVITIES WERE KNOWN TO HIS CORPORATE SUPERIORS AT ALL TIMES BOTH EXECUTIVES HAVE BEEN ON LEAVE FROM THE SURETYBOND CONCERN SINCE EARLY THIS MONTH PENDING THE FINDINGS OF AN INTERNAL INVESTIGATION BY A BOARD COMMITTEE UNDER TERMS OF THE EXECUTIVES' EMPLOYMENT CONTRACTS THEY HAVE 21 DAYS TO RESPOND TO THE NOTICES BEFORE THEY CAN BE DISMISSED THE COMPANY SAID IN A STATEMENT THE ALLEGED ACTS INCLUDE MR PACE'S UNDISCLOSED RECEIPT OF PORTIONS OF COMMISSIONS PAID BY A SUBSIDIARY OF THE COMPANY TO ONE OF ITS AGENTS AND THE UNDISCLOSED RECEIPT BY BOTH EXECUTIVES OF FEES PAID BY CONTRACTORS WHO WERE BONDED BY A COMPANY SUBSIDIARY THROUGH A FORMER AGENT THE STATEMENT SAID COMPANY OFFICIALS INCLUDING ITS GENERAL COUNSEL DANDO B CELLINI DIDN'T RETURN CALLS SEEKING CLARIFICATION IN ITS STATEMENT THE COMPANY SAID THE INVESTIGATION CONTINUES 9402150011 940215 CONSTRUCTION FIRMS MANUFACTURERS VOICE OPTIMISM IN SURVEYS NEW YORK BUOYED BY THE PROSPECT OF NEARTERM GROWTH MANUFACTURERS AND CONSTRUCTION FIRMS CONTINUE TO BE OPTIMISTIC ABOUT NEW ORDERS EMPLOYMENT AND PRICES ACCORDING TO TWO SURVEYS BY DUN & BRADSTREET CORP THE MONTHLY SURVEY OF 1000 MANUFACTURERS NATIONWIDE SHOWED AN INCREASE IN EXPECTATIONS ABOUT THE COMING THREE MONTHS DESPITE A SHARP DECLINE IN PRODUCTION AND NEW ORDERS REPORTED IN THE PAST THREE MONTHS WHICH WERE LARGELY THE RESULT OF HARSH WEATHER CONDITIONS DOUGLAS P HANDLER MANAGER OF ECONOMIC ANALYSIS FOR THE BUSINESS INFORMATION SERVICES COMPANY SPECULATED THAT MANUFACTURERS COULD OVERPRODUCE IN THE FIRST PART OF THE YEAR AND BE FORCED TO MAKE CYCLICAL CUTBACKS IN PRODUCTION D&B'S INDUSTRIALSENTIMENT INDEX WAS UP FOR THE SECOND CONSECUTIVE MONTH RISING TO 21 FROM 20 THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING COMPANIES EXPECTING INCREASES IN THE COMING THREE MONTHS IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES D&B'S SURVEY OF 200 CONSTRUCTION FIRMS INDICATED STRONG OPTIMISM FOR NEARTERM INCREASES IN EMPLOYMENT NEW ORDERS AND PRICES IN THE INDUSTRY THE INDEX MEASURING THREEMONTH EXPECTATIONS FOR ORDERS SHOT UP TO 43 IN JANUARY FROM 18 IN DECEMBER THE INDEX FOR EMPLOYMENT ROSE TO 33 FROM 15 AND THE INDEX FOR PRICES ROSE TO 23 FROM 19 HOWEVER ORDERS AND EMPLOYMENT IN JANUARY FELL SHARPLY FROM DECEMBER'S LEVELS WITH STABLE INTEREST RATES THE RISE IN CONSTRUCTION ORDERS IS NOW DRIVEN BY IMPROVING ECONOMIC CONDITIONS THROUGHOUT THE COUNTRY RATHER THAN BY FALLING INTEREST RATES MR HANDLER SAID 9402150010 940215 BUSINESS BRIEF LONGHORN STEAKS INC LAWSUIT ALLEGES COMPANY MISREPRESENTED ITS PROSPECTS A SHAREHOLDER FILED A SUIT IN US DISTRICT COURT HERE AGAINST LONGHORN STEAKS INC FIVE OF ITS EXECUTIVES AND TWO MANAGING UNDERWRITERS ALLEGING THAT THE COMPANY MISREPRESENTED ITS GROWTH PROSPECTS AND INFLATED ITS STOCK THE SUIT WHICH SEEKS TO BE CONSIDERED AS A CLASS ACTION SEEKS UNSPECIFIED DAMAGES THE SUIT ALSO CONDEMNS TOP EXECUTIVES FOR SELLING OFF SOME OF THEIR HOLDINGS PRIOR TO THE COLLAPSE OF THE STOCK LAST SPRING WHICH RESULTED FROM LOWERTHANEXPECTED EARNINGS REPORTS THE ATLANTA COMPANY WHICH OPERATES 46 STEAK RESTAURANTS IN THE SOUTHEAST DENIED THE ALLEGATIONS RONALD SAN MARTIN CHIEF FINANCIAL OFFICER WOULDN'T COMMENT ON THE SUIT BUT HE SAID THAT THE COMPANY HAS CURTAILED OUR GROWTH THIS YEAR AND WON'T BUILD THE 18 RESTAURANTS IT HAD PLANNED MR SAN MARTIN SAID THAT THE CHAIN'S FOUNDERS GEORGE MCKERROW SR AND GEORGE MCKERROW JR HELD 40 OF THE COMPANY'S SHARES UNTIL LAST MARCH AFTER WHICH POINT THEY SOLD OFF ABOUT HALF THEIR HOLDINGS MR MCKERROW JR CHAIRMAN COULDN'T BE REACHED FOR COMMENT 9402150009 940215 HEALTH MORE INSURERS PAY FOR CARE THAT'S IN TRIALS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL HEALTHMAINTENANCE ORGANIZATIONS AND OTHER INSURERS ARE STARTING TO PAY FOR A LOT OF EXPERIMENTAL TREATMENTS THAT THEY TRADITIONALLY HAVE BALKED AT COVERING THE NEW LENIENCY REFLECTS HMOS' GROWING CONCERN ABOUT THEIR LEGAL VULNERABILITY IF AN AILING MEMBER IS DENIED CARE RECENTLY A CALIFORNIA HMO HEALTH NET LOST A HIGHPROFILE COURT CASE INVOLVING A 37YEAROLD WOMAN WHO COULDN'T GET THE HEALTH PLAN TO PROMPTLY APPROVE EXPERIMENTAL THERAPY FOR HER BREAST CANCER THE WOMAN PAID FOR THE TREATMENT ON HER OWN AND LATER DIED A JURY AWARDED HER ESTATE 89 MILLION IN DAMAGES THIS IS A HOT ISSUE AND IT JUST GOT HOTTER SAYS HYMAN KAHN A MEDICAL DIRECTOR AT US HEALTHCARE INC BLUE BELL PA LIKE MOST HMOS AND INSURERS US HEALTHCARE SAYS IN ITS CONTRACTS WITH EMPLOYERS AND MEMBERS THAT IT WON'T PAY FOR EXPERIMENTAL CARE BUT WE AREN'T GOING TO HIDE BEHIND THAT DR KAHN SAYS IF THERE'S A MEDICAL REQUEST TO DO SOMETHING WE WILL ACT ON ITS MERITS MORE OFTEN THAN NOT WE COVER IT MANY HMOS ARE SETTING UP PANELS OF INDEPENDENT RESEARCHERS TO HELP THEM DECIDE WHEN EXPERIMENTAL CARE IS APPROPRIATE THAT'S AN APPROACH TAKEN BY US HEALTHCARE WHICH SAYS THAT FOR SOME TYPES OF CANCER IT NOW ENDS UP APPROVING 90 OF THE REQUESTS FOR COVERAGE OF EXPERIMENTAL CARE THESE PIONEERING TREATMENTS SOMETIMES CARRY STEEP PRICE TAGS EXPERIMENTAL DRUGS TO TREAT CANCER OR AIDS CAN COST 3000 OR MORE FOR PROLONGED TREATMENT SPENDING FOR LASER SURGERY TO TREAT LUNG DISEASE CAN TOP 20000 AND NEW TYPES OF ORGAN TRANSPLANTS OFTEN RUN MORE THAN 100000 MANY SERIOUSLY ILL PATIENTS WANT SUCH PIONEERING TREATMENT AND ARE WILLING TO SUE TO GET COVERAGE RICHARD CARTER AN ALEXANDRIA VA LAWYER SAYS THAT IN THE PAST FOUR YEARS HE HAS HANDLED 300 CASES INVOLVING PATIENTS' EFFORTS TO GET EXPERIMENTAL CARE PAID FOR IN MOST CASES MR CARTER SAYS RECALCITRANT HMOS AND INSURERS BACKED DOWN QUICKLY AND AGREED TO PAY I'D SAY THAT LESS THAN 25 OF CASES HAVE GONE TO COURT AND ONLY EIGHT HAVE GONE THROUGH A FULL TRIAL HE SAYS THIS WILLINGNESS TO BEND AFFECTS HMOS' EFFORTS TO HOLD DOWN COSTS ON THEIR MOST COMPLEX CASES IN A VACUUM WE'D LIKE TRUE EVIDENCE THAT SOMETHING IMPROVES PEOPLE'S HEALTH BEFORE APPROVING IT SAYS SIMEON RUBENSTEIN HEAD OF THE NEWTECHNOLOGY COMMITTEE AT GROUP HEALTH OF PUGET SOUND BUT THE REALITY OF POLITICS AND SOCIAL PRESSURE IS THAT THINGS AREN'T ALWAYS THAT SIMPLE SOME OF THE KEENEST DEBATES INVOLVE HIGHDOSE CHEMOTHERAPY FOLLOWED BY A BONEMARROW TRANSPLANT THAT HELPS REVIVE A CANCER PATIENT'S WHITEBLOODCELL PRODUCTION SUCH TREATMENTS CAN COST AS MUCH AS 200000 GROUP HEALTH DID AN ABOUTFACE ON ITS POLICY FOR BONEMARROW TRANSPLANTS LAST SUMMER AFTER A MEMBER THREATENED TO SUE OVER THE SEATTLE HMO'S PLANS TO DENY COVERAGE DR RUBENSTEIN SAYS GROUP HEALTH CHOSE TO COVER SUCH TREATMENT FOR BREAST CANCER BECAUSE NEW DATA FROM DUKE UNIVERSITY SUGGESTED THAT BONEMARROW TRANSPLANTS WORKED BETTER THAN EXPECTED HE ADDS THOUGH THAT THE THREAT OF A SUIT SPURRED HIS HMO TO REEXAMINE THE ISSUE AS PRESSURE ON INSURERS MOUNTS PATIENTS AND THEIR FAMILIES VOICE RELIEF MARK BURKDOLL A CLEARLAKE CALIF HOSPITAL TECHNICIAN SAYS HE WAS BRACED FOR A MAJOR BATTLE LAST SUMMER WITH HIS HMO HEALTH PLAN OF THE REDWOODS MR BURKDOLL'S SIXYEAROLD SON COLIN WAS BATTLING BRAIN CANCER AND DOCTORS HAD RECOMMENDED HIGHDOSE CHEMOTHERAPY FOLLOWED BY A BONEMARROW TRANSPLANT TO MR BURKDOLL'S SURPRISE THE HMO QUICKLY AGREED TO PAY FOR THE TREATMENT AFTER CONSULTING WITH AN INDEPENDENT DOCTOR AT CHILDREN'S HOSPITAL IN NEW YORK WHO SAID IT WAS MEDICALLY NECESSARY I FELT AS THOUGH HEALTH PLAN OF THE REDWOODS WAS GOING TO BAT FOR ME MR BURKDOLL SAYS HIS SON UNDERWENT TREATMENT IN OCTOBER AND APPEARS TO BE DOING WELL MOST OF THE LARGEST HMOS AND INSURERS NOW REGULARLY USE PANELS OF INDEPENDENT MEDICAL EXPERTS TO HELP DECIDE WHETHER TO AUTHORIZE COSTLY EXPERIMENTAL CARE AETNA LIFE & CASUALTY CO FOR EXAMPLE REFERS CANCER CASES TO A PANEL OF 130 DOCTORS AT INSTITUTIONS SUCH AS STANFORD UNIVERSITY AND THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE PANEL IS OVERSEEN BY GRACE POWERS MONACO A PATIENTRIGHTS ACTIVIST IN WASHINGTON DC WHO PICKS THREE PANELISTS TO REVIEW MEDICAL RECORDS THESE DOCTORS THEN ISSUE OPINIONS ABOUT WHETHER EXPERIMENTAL TREATMENT IS WARRANTED THIS MAKES IT A MUCH MORE COOPERATIVE RELATIONSHIP WITH PATIENTS SAYS WILLIAM MCGIVNEY DIRECTOR OF TECHNOLOGY ASSESSMENT AT AETNA HE SAYS THE OUTSIDE PANEL APPROVES ABOUT 65 OF THE EXPERIMENTAL TREATMENTS SENT ITS WAY AT US HEALTHCARE BREASTCANCER PATIENTS GENERALLY ARE OFFERED ACCESS TO CONTROLLED RESEARCH TRIALS WHERE THEY HAVE AT LEAST A 50 CHANCE OF GETTING AN EXPERIMENTAL TREATMENT IN SOME CASES THE HMO LETS PATIENTS UNDERGO BONEMARROW TRANSPLANTS RIGHT AWAY RATHER THAN TAKE A CHANCE ON THE RESEARCH TRIALS THERE'S A LARGE GRAY AREA BETWEEN STANDARD AND EXPERIMENTAL CARE SAYS HARRIS BERMAN CHIEF EXECUTIVE OFFICER OF TUFTS ASSOCIATED HEALTH PLANS WALTHAM MASS HIS HMO HAS REGULARLY PAID FOR EXPERIMENTAL SERVICES THAT IT THINKS HAVE PROMISE INCLUDING 14 OF 15 REQUESTS LAST YEAR FOR BONEMARROW TRANSPLANTS IN BREASTCANCER PATIENTS THE FEDERAL GOVERNMENT AT ONE TIME PAID FOR MOST EXPERIMENTAL CARE AT ESTABLISHED MEDICAL CENTERS BUT IN THE EARLY 1980S FEDERAL FUNDING DRIED UP WHILE COSTS FOR SUCH TREATMENT SOARED AS A RESULT MS MONACO SAYS INSURERS BEGAN IN THE MID1980S TO DENY MORE CARE UNDER THE EXPERIMENTALTREATMENT EXCLUSION BUT OVER THE PAST TWO YEARS SHE SAYS MORE AND MORE INSURERS ARE SAYING IF THE FEDS AREN'T GOING TO PAY FOR CLINICAL TRIALS MAYBE WE SHOULD SOME HMOS IN FACT ARE TRYING TO DEVELOP NEW CONTRACT LANGUAGE THAT WILL DO AWAY WITH THE DISPUTE ABOUT WHAT IS EXPERIMENTAL CARE AND WHAT ISN'T A MAJOR COLORADO HMO QUALMED INC HAS STARTED LETTING EMPLOYERS CHOOSE BETWEEN A PLAN THAT COVERS A WIDE RANGE OF CONTROVERSIAL NEW TREATMENTS SUCH AS LUNG TRANSPLANTS FOR CANCER PATIENTS AND ONE THAT SPECIFICALLY EXCLUDES THEM THE PRICE DIFFERENCE AMOUNTS TO ABOUT 15 OR 260 PER MEMBER PER MONTH SAYS MALIK HASAN QUALMED'S CHIEF EXECUTIVE OFFICER DR HASAN SAYS HE THINKS THE PREMIUM PLAN WILL DO WELL WITH LARGE CORPORATIONS AND THEIR HEALTH PLANS MAJOR EMPLOYERS DON'T WANT THE STRIFE THAT OFTEN COMES WITH DENYING INSURANCE COVERAGE TO A DESPERATELY ILL EMPLOYEE HE OBSERVES QUALMED ALSO WOULD FIND A MORE EXPLICIT COVERAGE SYSTEM EASIER TO MANAGE DR HASAN SAYS HIS INTEREST IS MORE THAN ACADEMIC QUALMED LAST MONTH ACQUIRED HEALTH NET THE CALIFORNIA HMO THAT LOST THE 89 MILLION DAMAGE CASE 9402150008 940215 RHONEPOULENC SEEKS ARBITRATION TO RESOLVE JOINTVENTURE TERMS COLLEGEVILLE PA RHONEPOULENC RORER INC AND IMMUNE RESPONSE CORP PARTNERS IN A JOINT VENTURE TO DEVELOP A VACCINE AGAINST HUMAN IMMUNODEFICIENCY VIRUS INFECTION SAID THEY RESORTED TO ARBITRATION TO RESOLVE A DISPUTE ABOUT THE VENTURE'S MANAGEMENT RHONEPOULENC RORER A UNIT OF THE FRENCH PHARMACEUTICAL COMPANY RHONEPOULENC SA INITIATED THE ARBITRATION FEB 8 WITH A FILING BEFORE THE AMERICAN ARBITRATION ASSOCIATION IN ST LOUIS IMMUNE RESPONSE BASED IN CARLSBAD CALIF FILED ITS OWN DEMAND FOR ARBITRATION THE NEXT DAY BOTH COMPANIES WERE QUICK TO SAY THEY DON'T EXPECT THE DISPUTE TO SLOW DEVELOPMENT OF THE AIDSVIRUS VACCINE DR DENNIS CARLO CHIEF OPERATING OFFICER OF IMMUNE RESPONSE SAID THE DISPUTE FOCUSES ON WHICH COMPANY WILL CONTROL THE CLINICAL TRIALS AND REGULATORY REVIEWS REQUIRED FOR THE DRUG'S EVENTUAL APPROVAL RHONEPOULENC SPOKESMAN BOB PEARSON CONTENDS THAT UNDER A 1992 AGREEMENT THE 5050 JOINT VENTURE IMMUNIZATION PRODUCTS LTD HAS CONTROL OF ALL ASPECTS OF THE DRUG'S DEVELOPMENT INCLUDING CLINICAL DEVELOPMENT REGULATORY AFFAIRS MARKETING AND MANUFACTURING AS OF THE END OF 1993 BOTH COMPANIES HAD CONTRIBUTED HALF OF A TOTAL 50 MILLION TO THE JOINT VENTURE BOTH COMPANIES EMPHASIZED THEY REMAIN ENTHUSIASTIC ABOUT THE VACCINE'S PROSPECTS MADE BY IMMUNE RESPONSE IT TAKES THE WHOLE AIDS VIRUS KILLING IT WITH A CHEMICAL AND RADIATION AND PEELING OFF ITS OUTER PROTEIN COAT IT WAS DESIGNED BY POLIOVACCINE PIONEER JONAS SALK TO TREAT PEOPLE WHO ALREADY HAVE THE HIV VIRUS 9402150007 940215 COSTLIER LABOR / FEWER JOBS THE OTHER AMERICAN DREAM TEAM BY DANIEL STRICKBERGER FOR YEARS IT HAS BEEN FASHIONABLE TO DERIDE AMERICAN COMPETITIVENESS AMERICAN BUSINESSES HAVE BEEN RIDICULED FOR INVENTING SUCH PRODUCTS AS THE VCR BUT FAILING TO CAPITALIZE ON THEM JAPANESE COMPANIES ON THE OTHER HAND HAVE BEEN ENDLESSLY PRAISED FOR DOMINATING MARKETS ONCE RULED BY AMERICAN COMPANIES SOME SAY THIS SUCCESS DERIVES FROM THE JAPANESE MODEL OF MANAGEMENT WHICH EMPHASIZED MARKET SHARE AT THE EXPENSE OF PROFITS EUROPEAN COMPANIES MEANWHILE ARE PRAISED FOR THEIR SUPPORT OF EXPENSIVE GOVERNMENT SOCIAL WELFARE PROGRAMS EVEN AS THEIR COMPETITIVE POSITION HAS DETERIORATED DESPITE GOVERNMENT SUBSIDIES BY CONTRAST AMERICAN FIRMS ARE ALLEGED TO LOSE MARKET SHARE BECAUSE THEY LACK LONGTERM VISION CRITICS CHARGE THAT THEY CONDUCT MASSIVE LAYOFFS SUCH AS AT&T'S 15000PERSON REDUCTION EARLIER THIS MONTH IN THE NAME OF SHORTTERM PROFITABILITY MANAGEMENT FASHIONS COME AND GO BUT ULTIMATELY BUSINESS RESULTS ARE MEASURED IN TERMS OF SALES AND PROFITS OVER THE LONG TERM THE TABLE NEARBY PRESENTS THE SCORECARDS OF AMERICAN JAPANESE AND EUROPEAN BUSINESSES OVER THE PAST SIX YEARS IN GLOBALLY COMPETITIVE INDUSTRIES THE DATA INCLUDE GLOBAL SALES INCLUDING THOSE OF FOREIGN SUBSIDIARIES THE RESULTS CLEARLY DEMONSTRATE THAT AMERICAN OWNERS MANAGERS AND WORKERS HAVE COMPETED AND WON TAKING HOME 37 OF SALES AND 48 OF PROFITS IN GLOBAL MARKETS IN THIS SENSE THE US HAS PRODUCED SOMETHING CLOSE TO THE TRADE VERSION OF OLYMPIC BASKETBALL'S DREAM TEAM AMERICAN INDUSTRY IS THE LEADER OR IS HIGHLY COMPETITIVE IN VIRTUALLY EVERY MAJOR GLOBAL INDUSTRY THIS SUCCESS RESULTS FROM WELLPLANNED AND WELLEXECUTED CAPITAL INVESTMENTS RESEARCH AND DEVELOPMENT ADVERTISING MARKETING PRODUCTION DESIGN AND PERSONNEL DEVELOPMENT OVER SEVERAL DECADES AND ALL OF THIS HAS COME ABOUT WITHOUT GOVERNMENT PLANNING IT IS THE TRIUMPH OF THE FREE MARKET IT IS CURIOUS THAT WHILE IT BECAME CONVENTIONAL WISDOM THAT US BUSINESSES WERE FALLING BEHIND COMPETITIVELY US ENTREPRENEURS WERE DEVELOPING THE WORLD'S LEADING COMPANIES IN MANY TECHNOLOGICALLY INTENSIVE INDUSTRIES US COMPANIES ARE THE LEADERS IN DATA PROCESSING INCLUDING COMPUTERS AND SOFTWARE ELECTRONIC EQUIPMENT ELECTRICAL COMPONENTS AND HEALTH AND PERSONAL CARE INCLUDING PHARMACEUTICALS IN TECHNOLOGY TODAY THE TWO MOST POWERFUL GLOBAL COMPANIES ARE INTEL AND MICROSOFT BOTH AMERICAN AMERICA HAS BOEING AND MCDONNELL DOUGLAS WHO TOGETHER WOULD HAVE A VIRTUAL MONOPOLY OF THE COMMERCIAL AIRCRAFT MARKET IF NOT FOR AIRBUS'S EUROPEAN UNION SUBSIDIES THE PHARMACEUTICAL INDUSTRY IS AN ESPECIALLY INTERESTING CASE GIVEN THE CLINTON ADMINISTRATION'S HOSTILITY TOWARD IT THIS INDUSTRY ALONE ACCOUNTED FOR MORE THAN 10 OF THE PROFITS EARNED BY ALL AMERICAN COMPANIES OVER THE PAST SIX YEARS YET THIS IS AN INDUSTRY THAT NECESSARILY MUST TAKE A VERY LONGTERM VIEW SINCE IT OFTEN TAKES A DECADE AND HUNDREDS OF MILLIONS OF DOLLARS TO DEVELOP A SINGLE NEW DRUG CLEARLY AMERICAN BUSINESSMEN ARE NOT THE MYOPIC SHORTTERMERS THEY ARE OFTEN ACCUSED OF BEING OF COURSE THE US DOES NOT LEAD IN EVERY CATEGORY IN STEEL PRODUCTION FOR EXAMPLE US COMPANIES EARNED A MINUSCULE 23 OF TOTAL PROFITS WHILE JAPANESE COMPANIES CLAIMED MORE THAN 50 US COMPANIES ON THE OTHER HAND ARE FAR AHEAD IN THE BUSINESSES OF TOMORROW AEROSPACE ELECTRONIC EQUIPMENT DATA PROCESSING WHICH INCLUDES SOFTWARE SALES AND HEALTH CARE WHAT US COMPANIES IN FACT HAVE DONE IS LEAPFROG THEIR RIVALS GIVING UP MARKET SHARE IN LOWPROFIT INDUSTRIES WHILE MOVING AHEAD IN HIGHPROFIT AREAS AND HIGHPROFIT INDUSTRIES ARE NOT NECESSARILY ONLY IN THE TECHNOLOGY AREA FOOD BEVERAGES TOBACCO AND PERSONALCARE PRODUCTS HAVE BEEN AMONG THE MOST PROFITABLE BUSINESSES IN RECENT YEARS THESE ARE AREAS WHERE JAPANESE COMPANIES ARE PARTICULARLY WEAK AND THE EUROPEANS HAVE BEEN LOSING GROUND NOTE ALSO THAT THE MASSMARKET EUROPEAN PRODUCTS OF VOLKSWAGEN PEUGEOT AND FIAT ARE VIRTUALLY NONEXISTENT IN THE US MARKET WITH A COMBINED 1 MARKET SHARE IN CONTRAST GM AND FORD ARE STRONG COMPETITORS IN EUROPE WITH A COMBINED 24 MARKET SHARE THERE MANY OF THOSE WHO FAVOR THE JAPANESE OR EUROPEAN MODELS ARE REALLY LESS CONCERNED WITH FINDING BETTER AND MORE EFFICIENT METHODS OF MANAGEMENT THAN WITH LOOKING FOR A WAY TO RATIONALIZE THEIR BASIC HOSTILITY TO CAPITALISM THEY IMPLICITLY BELIEVE THAT PROFITS ARE BAD OR AT LEAST UNDESERVED AND THAT THEY SOMEHOW COME AT THE EXPENSE OF WORKERS AND CONSUMERS THEY ALSO VIEW THE NEED FOR PROFITS TO BE AN INSURMOUNTABLE BARRIER TO THE TRANSFORMATION OF CORPORATIONS INTO INSTRUMENTS OF SOCIAL WELFARE THAT WOULD SUBORDINATE PROFITS TO HIGHER GOALS SUCH AS HIGH WAGES AND BENEFITS FOR WORKERS IN THE EUROPEAN STYLE HOWEVER THE MOST DISTURBING PROBLEM WITH THOSE WHO FAVOR ANOTHER MODEL IS THAT THEY DO NOT UNDERSTAND THAT PROFIT IS THE PRINCIPAL SOURCE OF CAPITAL TO FINANCE ECONOMIC GROWTH AND JOB CREATION IN THE PAST 10 YEARS THE US HAS CREATED OVER 18 MILLION NET NEW JOBS AND JAPAN HAS CREATED EIGHT MILLION WHILE EUROPE HAS CREATED JUST 69 MILLION DESPITE HAVING A POPULATION LARGER THAN THAT OF THE US AND MORE THAN TWICE THAT OF JAPAN THE COLLAPSE OF JAPAN'S STOCK MARKET AND THE SLOWING OF ITS ECONOMY ARE ALREADY SLOWING JOB CREATION THERE WHILE EUROPE ACTUALLY IS EXPECTED TO HAVE A NET DECLINE IN TOTAL JOBS OVER THE NEXT TWO YEARS ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MEANWHILE THE US JOB MACHINE HAS CREATED MORE THAN ONE MILLION NEW JOBS IN JUST THE PAST YEAR WHAT THE RESULTS TELL US IS THAT AMERICAN MANAGERS ARE IN FACT THE BEST IN THE WORLD THEY HAVE INVESTED THEIR CAPITAL AND EXPANDED PRODUCTION NOT ONLY IN THE AREAS THAT HAVE PROVIDED THE BEST RATES OF RETURN BUT ALSO IN PRECISELY THOSE BUSINESSES THAT ARE BEST ABLE TO SATISFY THE CHANGING NEEDS OF THE CONSUMER IN THE PROCESS THEY HAVE LEFT MOST OF THEIR COMPETITORS BEHIND TRUE AMERICAN COMPANIES CONTINUE TO RESTRUCTURE AND MANY LARGE COMPANIES ARE STILL SHEDDING JOBS BUT OTHERS ARE CREATING JOBS BY DEVELOPING NEW PRODUCTS METHODS AND MARKETING TECHNIQUES IT IS ALL PART OF SCHUMPETER'S PROCESS OF CREATIVE DESTRUCTION AS COMPANIES IN MATURE INDUSTRIES WITH DECLINING PROFITS DOWNSIZE AND DYNAMIC NEW COMPANIES WITH HIGH PROFIT POTENTIAL GROW TO REPLACE THEM IN THE END IT IS PROFITABILITY THAT FUELS THIS PROCESS MR STRICKBERGER IS A PARTNER WITH AN INVESTMENT MANAGEMENT FIRM IN NEW YORK HE IS ALSO AN ADJUNCT FELLOW WITH THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VA 9402150006 940215 WHO'S NEWS ORION CAPITAL CORP ORION CAPITAL CORP NEW YORK EXECUTIVE VICE PRESIDENT LARRY HOLLEN 48 YEARS OLD WAS NAMED TO SUCCEED ROBERT SANBORN AS PRESIDENT AND CHIEF OPERATING OFFICER MR SANBORN BECOMES VICE CHAIRMAN OF THIS SPECIALTYINSURANCE COMPANY'S BOARD UNDER A PLAN OF SUCCESSION BEGUN IN LATE 1992 WHEN MR HOLLEN WAS GIVEN ADDITIONAL OPERATING RESPONSIBILITIES 9402150005 940215 JWP FILES FOR SHIELD UNDER CHAPTER 11 CHAIRMAN TO RESIGN RYE BROOK NY JWP INC AS EXPECTED SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AND SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO RESIGN THE BELEAGURED MECHANICAL AND ELECTRICALCONSTRUCTION CONTRACTING COMPANY SAID THE VOLUNTARY FILING CONVERTS AN INVOLUNTARY PETITION FILED IN DECEMBER BY THREE HOLDERS OF JWP'S 7 3/4 CONVERTIBLE SUBORDINATED DEBENTURES JWP SAID THE OPERATIONS OF ITS UNITS WILL BE UNAFFECTED BY THE BANKRUPTCY PROCEEDING WHICH APPLIES TO THE HOLDING COMPANY JWP ALSO SAID IT HAD REACHED AN AGREEMENT FOR 35 MILLION OF DEBTORINPOSSESSION FINANCING WITH BELMONT CAPITAL PARTNERS II LP SUBJECT TO COURT APPROVAL AND CERTAIN CONDITIONS BELMONT'S GENERAL PARTNER IS AN AFFILIATE OF FIDELITY INVESTMENTS UNDER JWP'S REORGANIZATION PLAN CREDITORS HOLDING ABOUT 600 MILLION OF CLAIMS AND DEBT WOULD RECEIVE ABOUT 110 MILLION OF RECOURSE DEBT 50 MILLION OF NONRECOURSE DEBT AND 100 OF THE COMPANY'S EQUITY HOLDERS OF SUBORDINATED DEBT COMMON AND PREFERRED STOCK AND WARRANTS WOULDN'T HAVE ANY STAKE IN THE RESTRUCTURED COMPANY SEPARATELY EDWARD KOSNIK SAID HE WILL RESIGN AS CHAIRMAN AND CHIEF EXECUTIVE OF JWP TO PURSUE OTHER PERSONAL AND BUSINESS ACTIVITIES IN A STATEMENT MR KOSNIK SAID THE FILING OF THE PREARRANGED CHAPTER 11 WHICH HAS THE SUPPORT OF JWP'S PRINCIPAL CREDITORS IS AN APPROPRIATE TIME TO BRING ON BOARD A NEW CHIEF EXECUTIVE TO LEAD A REORGANIZED JWP INTO THE FUTURE MR KOSNIK WILL CONTINUE AS CHIEF EXECUTIVE FOR A TRANSITION PERIOD JWP SAID A SUCCESSOR HAS NOT BEEN NAMED SEPARATELY JWP SAID JEFFREY M LEVY SENIOR VICE PRESIDENT WAS NAMED ACTING CHIEF OPERATING OFFICER 9402150004 940215 ECONOMY NAFTA SIDE PACT ON LABOR LAWS FACES FIRST TEST UNIONS SAY GE HONEYWELL FIRED MEXICAN WORKERS FOR TRYING TO ORGANIZE BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE FIRST COMPLAINTS FILED UNDER THE LABOR SIDE AGREEMENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT TWO UNIONS ACCUSED GENERAL ELECTRIC CO AND HONEYWELL INC OF FIRING MEXICAN EMPLOYEES FOR ATTEMPTING TO ORGANIZE WORKERS INTO LABOR UNIONS THE SEPARATE SUBMISSIONS WERE FILED WITH THE US LABOR DEPARTMENT'S NEW NATIONAL ADMINISTRATIVE OFFICE THE UNITED ELECTRICAL WORKERS FILED AGAINST GE AND THE TEAMSTERS FILED AGAINST HONEYWELL TOGETHER THE SUBMISSIONS COULD SET PRECEDENTS FOR HANDLING SUCH CASES UNDER THE COMPLICATED MECHANISM SET UP UNDER THE TRADE AGREEMENT TO RESOLVE CROSSBORDER LABOR DISPUTES THE UNIONS WHICH REPRESENT SOME OF THE COMPANIES' US WORKERS TEAMED UP WITH THE AUTHENTIC LABOR FRONT AN INDEPENDENT LABOR FEDERATION IN MEXICO TO FILE AND PUBLICIZE THE CASES THE LABOR ORGANIZATIONS ARE ASKING FOR PUBLIC HEARINGS AND FOR THE FIRED WORKERS TO BE REINSTATED AND ALLOWED TO CHOOSE UNIONS WITHOUT REPRISALS GE A FAIRFIELD CONN SERVICE AND MANUFACTURING COMPANY AND HONEYWELL A MINNEAPOLISBASED MAKER OF CONTROLS BOTH DENIED THE ALLEGATIONS AND SAID THEY WOULD COOPERATE WITH ANY INQUIRIES FROM THE NATIONAL ADMINISTRATIVE OFFICE THE FIRST QUESTION FOR THE NATIONAL ADMINISTRATIVE OFFICE IS WHETHER THE OFFICE BORN JAN 1 WHEN THE TRADE AGREEMENT TOOK EFFECT CAN RULE ON CASES THAT BEGAN LAST YEAR EVEN IF THE OFFICE ACCEPTS ONE OR BOTH FOR REVIEW THE CASES ARE LIKELY TO FACE A LONG BUREAUCRATIC ROAD AND AN UNCERTAIN OUTCOME STILL THEY SHOW THAT DESPITE HARSH CRITICISM OF NAFTA AND THE LABOR SIDE AGREEMENT LABOR UNIONS AREN'T HESITANT TO USE THE PROCEDURES THEY CREATE WE'RE TESTING THE NAO AND SEEING IF IT WORKS SAID BOB NICKLAS SPECIALPROJECTS COORDINATOR FOR THE TEAMSTERS HE ACKNOWLEDGED THAT IT COULD TAKE SOME TIME HIS OWN COUNT OF THE VARIOUS STEPS IN THE PROCESS SHOWS THAT IT COULD TAKE MORE THAN TWO YEARS FOR THE CASES TO BE CONCLUDED UNDER THE NAFTA SIDE AGREEMENT ON LABOR ORGANIZATIONS ARE SET UP IN EACH PARTICIPATING COUNTRY TO HANDLE COMPLAINTS OVER ENFORCEMENT OF LABOR LAWS IN OTHER COUNTRIES THE NATIONAL ADMINISTRATIVE OFFICE HAS 60 DAYS TO DECIDE WHETHER TO ACCEPT THE SUBMISSIONS ULTIMATELY THE CASES COULD GO TO DISPUTERESOLUTION PANELS THE TEAMSTERS ALLEGE THAT HONEYWELL FIRED ABOUT 20 PRODUCTION WORKERS AT ITS CHIHUAHUA PLANT IN NOVEMBER FOR SEEKING TO FORM AN INDEPENDENT AND FREE TRADE UNION AND THAT SINCE THEN THE COMPANY HAS INCREASED ELECTRONIC SURVEILLANCE OF ITS WORKERS A HONEYWELL SPOKESWOMAN SAID 22 WORKERS WERE LAID OFF AS PART OF AN OVERALL PLAN TO DOWNSIZE THE FACTORY SHE ADDED THAT ONE EMPLOYEE WAS FIRED FOR PERFORMANCE ISSUES THE UNITED ELECTRICAL WORKERS MEANWHILE ALLEGE THAT GENERAL ELECTRIC FLAGRANTLY VIOLATED THE LABOR AND HUMAN RIGHTS OF ITS EMPLOYEES AT ITS MOTOR PLANT IN JUAREZ IN ADDITION TO ALLEGED FIRINGS FOR UNION ACTIVITIES THE UNION SAYS THAT WORKERS ARE NOW FORCED TO BOARD OR EXIT BUSES ON COMPANY PROPERTY SO THEY CAN'T RECEIVE UNION LITERATURE GE SAID IT HASN'T VIOLATED US OR MEXICAN LABOR LAWS AND THAT THE ALLEGATIONS ARE PART OF A UNION ORGANIZING CAMPAIGN IN MEXICO AND THE UE'S CONTINUED ANTINAFTA EFFORTS A SPOKESMAN SAID SIX OF 11 FIRED WORKERS WERE OFFERED REINSTATEMENT AFTER THE COMPANY'S MANAGEMENT REVIEWED THE CASES BUT THAT THE WORKERS DECLINED HE SAID GE FOUND THAT LOCAL MANAGEMENT HAD SUFFICIENT EVIDENCE THAT FOUR OTHERS VIOLATED COMPANY RULES AND THAT ANOTHER CASE IS UNDER REVIEW 9402150003 940215 EDUCATION TOTS DO SWIMMINGLY IN LANGUAGEIMMERSION PROGRAMS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT ONE BY ONE THE FIRST GRADERS RECITE THE CHARACTERS THE TEACHER HAS DRAWN ON THE BOARD ONLY IT'S NOT THE ABCS THAT THESE SIX AND SEVENYEAROLDS ARE RATTLING OFF BUT THE HIRAGANA CHARACTERS OF THE JAPANESE LANGUAGE THE STUDENTS IN THIS INNERCITY PUBLIC SCHOOL CLASSROOM HAVE NO JAPANESE HERITAGE IN FACT ALMOST ALL OF THEM ARE AFRICANAMERICAN BUT ALL DAY LONG THEY HEAR ONLY JAPANESE FROM THEIR TEACHERS THEY RECITE THEIR MATH PROBLEMS IN JAPANESE THEIR LANGUAGE READERS OPEN FROM LEFT TO RIGHT AS IN JAPAN WHEN THE TEACHER ASKS IN JAPANESE DO YOU UNDERSTAND THE CHILDREN CHIRP HAI THIS IS DETROIT'S FOREIGN LANGUAGE IMMERSION AND CULTURAL STUDIES SCHOOL ONE OF ABOUT 150 PUBLIC ELEMENTARY SCHOOLS NATIONWIDE WHOSE CURRICULA ARE TAUGHT IN A FOREIGN TONGUE THE SOCALLED IMMERSION PROGRAMS WHICH BEGIN IN KINDERGARTEN OR FIRST GRADE ARE OFFERED PRIMARILY IN FRENCH OR SPANISH THOUGH CANTONESE IS TAUGHT IN SAN FRANCISCO GERMAN IN MILWAUKEE AND HAWAIIAN IN HONOLULU THE PROGRAMS SHARPLY DEPART FROM TRADITIONAL LANGUAGE INSTRUCTION RATHER THAN DEVOTING JUST A SMALL PORTION OF THE SCHOOL DAY TO LANGUAGE INSTRUCTION SOME OR ALL SUBJECTS ARE TAUGHT IN THE SECOND TONGUE THE US LONG A FOREIGNLANGUAGE LAGGARD CAN NO LONGER AFFORD TO BE SO TEACHING CHILDREN TO SPEAK OTHER LANGUAGES NOT ONLY ENHANCES COGNITIVE SKILLS AND CULTURAL APPRECIATION IT IS ALSO BECOMING AN ECONOMIC NECESSITY AS TRADE BARRIERS CRUMBLE AND BUSINESSES TURN TO FOREIGN MARKETS FOR EXPANSION YOU CAN BUY IN ANY LANGUAGE BUT TO SELL YOU NEED TO KNOW THE LANGUAGE OF YOUR CUSTOMER SAYS PAUL SIMON THE DEMOCRATIC SENATOR FROM ILLINOIS AND AUTHOR OF THE TONGUETIED AMERICAN IMMERSION PROGRAMS AREN'T EASY TO OPERATE FINDING TEACHERS WHO ARE BILINGUAL IS A PROBLEM SO IS ATTRITION AS CHILDREN LEAVE THE PROGRAMS BECAUSE THEIR FAMILIES MOVE OR FOR OTHER REASONS THE ATTRITION RATE IN THE DETROIT IMMERSION SCHOOL WHICH ALSO OFFERS FRENCH AND SPANISH PROGRAMS IS ABOUT 10 A YEAR THAT PARENTS OF 126 STUDENTS IN DETROIT HAVE CHOSEN TO ENROLL THEIR CHILDREN IN JAPANESE IS TESTAMENT TO THEIR FAITH THAT PROFICIENCY IN THE LANGUAGE WILL ENHANCE THEIR CHILDREN'S FUTURE JOB PROSPECTS I CHOSE THE IMMERSION PROGRAM FOR ECONOMIC REASONS I SEE THAT THE JAPANESE COMPANIES ARE BECOMING PART OF AMERICA SAYS MARGARET CLAY MOTHER OF FOURTH GRADER AARANISA WHO'S BEEN SPEAKING JAPANESE SINCE KINDERGARTEN FIFTH GRADER CLEOGHER DIXON WHOSE FATHER WORKS FOR CHRYSLER IS MORE BLUNT MY DAD TOLD ME THAT ONE DAY THE JAPANESE ARE GOING TO TAKE OVER EVERYTHING MOST LINGUISTS AGREE THAT FOREIGN LANGUAGES ARE EASIEST TO MASTER AT A YOUNG AGE WHEN CHILDREN HAVE NO FEAR OF THEIR DIFFICULTY AREN'T EMBARRASSED ABOUT PRONUNCIATION AND ACTUALLY CONSIDER THEM FUN WE LIKE SPEAKING JAPANESE AT HOME MY BROTHER HELPS ME SAYS GEOFFREY STEPHENS SEVEN YEARS OLD WHOSE THIRDGRADE BROTHER AND KINDERGARTEN SISTER ARE ALSO STUDYING JAPANESE IN DETROIT MOREOVER THE PROCESS OF LEARNING HOW TO LEARN A SECOND LANGUAGE BE IT SPANISH OR URDU CAN INSTILL IN YOUNG CHILDREN SPECIAL LEARNING SKILLS AS WELL AS SENSITIVITY TO OTHER CULTURES TEACHING A LANGUAGE IS TEACHING A CHILD TO PUT ON A PERSPECTIVE THE LENSES OF ANOTHER CULTURE SAYS PAUL GARCIA LANGUAGE DIRECTOR IN KANSAS CITY MO WHICH OFFERS FRENCH GERMAN AND SPANISH IMMERSION PROGRAMS INDEED AMERICA LAGS FAR BEHIND NOT ONLY ITS INDUSTRIALIZED COUNTERPARTS BUT ALSO THE LESS DEVELOPED WORLD IN THE ABILITY OF ITS STUDENTS TO SPEAK OTHER LANGUAGES INDIA AND FRANCE FOR EXAMPLE REQUIRE STUDENTS TO STUDY TWO FOREIGN LANGUAGES IN HIGH SCHOOL IN JAPAN STUDENTS BEGIN STUDYING ENGLISH IN SEVENTH GRADE BUT ONLY ABOUT ONETHIRD OF ALL AMERICAN SECONDARYSCHOOL STUDENTS TAKE A LANGUAGE WHILE A MERE 2 TO 3 OF CHILDREN STUDY AT THE PRIMARYSCHOOL LEVEL ENROLLMENT IN IMMERSION PROGRAMS IS GENERALLY VOLUNTARY AND NO APTITUDE TESTS ARE GIVEN PRIOR TO ADMISSION AND DESPITE THE INTENSITY OF THE LANGUAGE INSTRUCTION LINGUISTS AND TEACHERS BELIEVE SUCH PROGRAMS AREN'T ANY MORE STRESSFUL THAN TRADITIONAL SCHOOL FOR THE CHILDREN THE IMMERSIONPROGRAM STUDENTS ARE ALL IN THE SAME BOAT SAYS NANCY RHODES ASSOCIATE DIRECTOR AT THE CENTER FOR APPLIED LINGUISTICS IN WASHINGTON DC THEY CAN ALWAYS COMMUNICATE WITH EACH OTHER IN THE BEGINNING THEY WON'T UNDERSTAND THE TEACHER BUT THE TEACHER WILL UNDERSTAND EVERYTHING THEY SAY STILL SOME PARENTS OFTEN HESITATE TO ENROLL THEIR CHILDREN IN SUCH PROGRAMS DO YOU KNOW WHAT IT'S LIKE TO TRY TO HELP YOUR KIDS WITH THEIR HOMEWORK WHEN YOU CAN'T READ DIRECTIONS OR EVEN LOOK A WORD UP ASKS SARI KAYE A LANGUAGECURRICULUM DIRECTOR IN THE FAIRFAX COUNTY VA SCHOOL DISTRICT WHICH OFFERS A JAPANESE PARTIALIMMERSION PROGRAM PARENTS ALSO WORRY THAT THEIR CHILDREN'S ENGLISH SKILLS WILL BE NEGLECTED HOWEVER STANDARDIZED TESTS SHOW THAT CHILDREN TAUGHT IN ANOTHER LANGUAGE ACTUALLY DO AS WELL OR BETTER IN ENGLISH GRAMMAR READING COMPREHENSION AND VOCABULARY IMMERSION PROGRAMS FIRST SPROUTED IN QUEBEC IN THE MID1960S WHEN A GROUP OF ENGLISHSPEAKING PARENTS REALIZED THEIR CHILDREN WERE FAR FROM BILINGUAL EVEN AFTER TAKING FRENCH ONE PERIOD A DAY OVER SEVERAL YEARS THEY INSTITUTED A PLAN IN WHICH KINDERGARTEN AND FIRSTGRADE COURSES WOULD BE TAUGHT IN FRENCH WITH ENGLISH GRADUALLY INTRODUCED IN EACH OF THE NEXT SEVERAL GRADES BY FOURTH GRADE THE INSTRUCTION WOULD BE ABOUT 50 ENGLISH THOSE STUDENTS DEVELOPED CONFIDENCE AND PROFICIENCY FAR GREATER THAN THEIR PEERS SAYS RICHARD TUCKER THEN A PROFESSOR AT MCGILL UNIVERSITY WHICH MONITORED THE STUDENTS' PROGRESS OVER SEVERAL YEARS CULVER CITY CALIF WAS THE FIRST US SCHOOL DISTRICT TO ADOPT THE MODEL IN 1971 FOR TEACHING SPANISH IN LANGUAGES WITH THE SAME ALPHABET AS ENGLISH SUCH AS FRENCH AND SPANISH CHILDREN ARE FAIRLY CONVERSANT BY FOURTH OR FIFTH GRADE IN JAPANESE IT TAKES MORE TIME IN DETROIT KAORI OHGATA A JAPANESE NATIVE SAYS OF HER CHARGES THEIR HEARING IS PRETTY GOOD BY FOURTH AND FIFTH GRADES AS FOR THEIR WRITING WE ARE STILL WORKING ON IT GRIPES FIFTH GRADER SIKA FOX IT'S HARD PLAIN HARD STILL THE STUDENTS WOULD BE ABLE TO HOLD A SIMPLE CONVERSATION WITH THEIR PEERS IN JAPAN SAYS MS OHGATA EVEN WHEN FLUENT HOWEVER THE ELEMENTARY STUDENTS STILL WILL NOT SOUND LIKE NATIVES AS THEY MIGHT IF IMMERSED IN ANOTHER COUNTRY IN SOME CASES THEY DEVELOP A CLASSROOM DIALECT ALL MAKING THE SAME MISTAKES TEACHERS HAVE A HARD TIME GETTING THE STUDENTS TO USE THE FIRST PERSON SINCE THE TEACHER IS ALWAYS REFERRING TO STUDENTS AS YOU AT THE DETROIT IMMERSION SCHOOL INEALA CHAMBERS THE PRINCIPAL SPENDS MUCH OF HER TIME TRYING TO RECRUIT TEACHERS AND GET VISAS FOR MANY WHO ARE FOREIGNBORN THE TEACHERS AT THE SCHOOL WHICH ENROLLS ANOTHER 400 CHILDREN IN FRENCH AND SPANISH IMMERSION PROGRAMS COULD FORM A MINIUNITED NATIONS HAILING FROM JAPAN CHINA BENIN LEBANON VENEZUELA MEXICO BELGIUM AND ARGENTINA OF THE JAPANESE TEACHERS TWO ARE JAPANESE NATIONALS ONE THE WIFE OF AN EXECUTIVE TRANSFERRED TO DETROIT ONE IS CHINESE AND SPENT SEVERAL YEARS IN JAPAN AND ONE IS AN AFRICANAMERICAN WHO STUDIED IN JAPAN IN COLLEGE AND STAYED ON FOR A FEW YEARS PARENTS OF THOSE IN THE DETROIT PROGRAM HAVE FORMED A JAPANESE CLUB THAT TAKES THE CHILDREN ON EXCURSIONS TO ENHANCE THEIR AWARENESS OF THE CULTURE THEY HAVE TRAVELED TO A JAPANESE GARDEN A SATURDAY SCHOOL FOR CHILDREN OF JAPANESE EXECUTIVES STATIONED IN THE DETROIT AREA AND A JAPANESE RESTAURANT NOW THEY ARE WORKING ON REAL IMMERSION A TRIP TO JAPAN IN 1996 9402150002 940215 LETTERS TO THE EDITOR FIRST WE MUST FIND FLYING ELEPHANTS IN HER JAN 18 LETTER RESPONDING TO MY DEC 23 EDITORIALPAGE ARTICLE PRESIDENT'S COSTLY BUDGETBUSTER NANCYANN MIN OF THE OFFICE OF MANAGEMENT AND BUDGET DID NOT RESPOND TO THE CENTRAL THEME THAT BOTH THEORY AND HISTORY STRONGLY SUGGEST THAT ADOPTION OF A MASSIVE NEW ENTITLEMENT PROGRAM WILL LEAD TO A MASSIVE EXPANSION OF BUDGET DEFICITS MS MIN DODGES THIS CRITICAL ISSUE BY FOCUSING HER RESPONSE ON SIDE ISSUES BUT EVEN THESE COMMENTS REFLECT A LEVEL OF INACCURACY THAT HAS COME TO CHARACTERIZE THE CLINTON ADMINISTRATION SHE ATTEMPTS TO DEFEND THE ADMINISTRATION'S BUDGET NUMBERS BY ASSERTING THAT A STUDY BY LEWINVHI CAME TO THE SAME CONCLUSION YET THE LEWINVHI STUDY WAS NOT DESIGNED TO ASCERTAIN THE RELIABILITY OF THOSE FIGURES INSTEAD THE REPORT MEASURED THE FINANCIAL IMPACT OF THE CLINTON PROPOSAL USING THE HEROIC ASSUMPTION THAT THE PLAN'S PRICE CONTROLS AND EXPENDITURE LIMITS WOULD OPERATE EXACTLY AS THE ADMINISTRATION PREDICTS AS I STATED IN MY ARTICLE HOWEVER THESE ASSUMPTIONS ARE GROSSLY OPTIMISTIC MS MIN'S CLAIMS ARE SOMEWHAT LIKE DEBATING THE ABILITIES OF FLYING ELEPHANTS WITHOUT EVER CONFIRMING THE EXISTENCE OF SUCH CREATURES MS MIN ALSO BERATES ME FOR NOT MENTIONING THE OMB SCENARIOS THAT INDICATE THE HEALTH PLAN COULD PRODUCE EVEN MORE SAVINGS THAN ADVERTISED SHE SHOULD HAVE READ MORE CAREFULLY I SPECIFICALLY NOTED THAT THE NUMBERS I USED WERE PART OF AN EXERCISE TO LOOK AT BESTCASE AND WORSTCASE NUMBERS MY ANALYSIS WHICH SHE NEGLECTED TO COUNTER IS THAT SOCALLED WORSTCASE NUMBERS ARE THE REALISTIC ONES TO USE WHEN PREDICTING THE COST OF NEW ENTITLEMENT PROGRAMS 9402150001 940215 PICK A CARD VISA AMERICAN EXPRESS AND MASTERCARD VIE IN OVERSEAS STRATEGIES TASK IS TO TEACH CONSUMERS WHO MAY SHUN CREDIT JOY OF SAYING CHARGE IT' THE GLOBAL GOSPEL OF PLASTIC BY WALL STREET JOURNAL STAFF REPORTERS STEVEN LIPIN IN NEW YORK BRIAN COLEMAN IN BRUSSELS AND JEREMY MARK IN TAIWAN HERE'S HOW ANDRZEJ KRZEMINSKI HEAD OF INTERNATIONAL BANKING AT POLAND'S BANK INICJATYW GOSPODARCZYCH OR BIG BANK IS WINNING THE HEARTS AND MINDS OF MERCHANTS FOR VISA INTERNATIONAL THE CREDITCARD CONSORTIUM FIRST HE FINDS A SHOP THAT DOESN'T SPORT THE VISA LOGO IN ITS WINDOW THEN HE POSES AS A CUSTOMER PLACING ORDERS FOR A LARGE AMOUNT OF MERCHANDISE AS THE HAPPY SHOPKEEPER TOTES UP THE BILL MR KRZEMINSKI PULLS OUT A VISA CARD ONLY TO BE TOLD IT ISN'T ACCEPTED HE STALKS ANGRILY OUT LEAVING THE DISAPPOINTED MERCHANT TO RESHELVE THE GOODS THEN HE SENDS IN OTHER BIG BANK COLLEAGUES TO PULL THE SAME RUSE OVER THE NEXT FEW DAYS IT'S A TOUGH STORE OWNER WHO CAN HOLD OUT LONG BEFORE SIGNING UP WITH VISA IT'S QUITE EFFICIENT OBSERVES MR KRZEMINSKI THE SHOP MANAGERS GO A LITTLE CRAZY PEOPLE LIKE MR KRZEMINSKI AND HIS ASSOCIATES AT BIG BANK HAVE GIVEN VISA A POWERFUL LEAD IN THE RAPIDLY GROWING POLISH CREDITCARD MARKET POLAND IS VISADOMINATED NOTES CIARA LINNANE EDITOR OF EAST EUROPEAN BANKER A NEWSLETTER WITH AMERICAN CONSUMERS LONG AWASH IN A SEA OF PLASTIC VISA AND ITS ARCHRIVALS MASTERCARD INTERNATIONAL AND AMERICAN EXPRESS CO HAVE CARRIED TO FOREIGN SHORES THEIR FIERCE FIGHT TO SIGN UP AS MANY BANKS SHOPS AND CONSUMERS AS POSSIBLE MASTERCARD AND VISA THE TWO BIGGEST GLOBAL CARD BRANDS ARE CONSORTIUMS FOR THE WORLD'S FINANCIAL INSTITUTIONS AND DO MUCH OF THE LEGWORK TO SET UP AN INFRASTRUCTURE AND PERSUADE MERCHANTS TO ACCEPT THEIR CARDS MEMBER BANKS SUCH AS CITIBANK OR HONGKONG & SHANGHAI BANK THEN ISSUE TO CONSUMERS THE CARDS THAT ALLOW THEM TO BUY ON CREDIT AMERICAN EXPRESS WHILE ISSUING CHARGE CARDS THAT MUST BE PAID OFF MONTHLY IS TRYING TO BUILD UP ITS OPTIMA CREDIT CARD MUCH IS AT STAKE LAST YEAR MORE THAN 1 TRILLION WAS SPENT VIA PLASTIC CARDS AND ESTIMATES CALL FOR THE GLOBAL CARD MARKET TO HIT AT LEAST 2 TRILLION BY THE YEAR 2000 OUTSIDE THE US THE POTENTIAL FOR GROWTH IS STILL QUITE PHENOMENAL SAYS DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT AN OXNARD CALIF NEWSLETTER THAT TRACKS THE CARD MARKET IT MIGHT SEEM THAT SPREADING THE PLASTIC GOSPEL WOULD BE EASY AFTER ALL MOST CONSUMERS LIKE THE CONVENIENCE OFFERED BY CHARGE AND CREDIT CARDS OR THEIR CLOSE BUT LESSPROFITABLE COUSINS DEBIT CARDS DEBIT CARDS FUNCTION LIKE A BANK CHECK IN THAT THEY DEDUCT THE COST OF A PURCHASE DIRECTLY FROM THE OWNER'S BANK ACCOUNT CERTAINLY MOST BANKS ARE EAGER TO GET INTO THE LUCRATIVE CREDITCARD MARKET PERHAPS THE MOST PROFITABLE CONSUMERBANKING PRODUCT BECAUSE OF THE FAT INTEREST RATES CHARGED EVEN MERCHANTS LESS ENTHUSIASTIC BECAUSE OF THE FEES THEY MUST PAY CARD FIRMS FOR EACH TRANSACTION USUALLY BOW TO CONSUMER PRESSURE BUT IN THEIR EFFORTS TO GO GLOBAL THE BIG CARD CONCERNS FACE A BEWILDERING ARRAY OF PROBLEMS MARKETERS MUST FIGURE OUT WHAT MAKES THE CONSUMER IN A GIVEN COUNTRY TICK LAWYERS PORE OVER REGULATIONS TO DIVINE WHAT VARIOUS GOVERNMENTS WILL AND WON'T ALLOW TECHNICIANS SEEK WAYS TO SHUTTLE VAST AMOUNTS OF DATA OVER SOMETIMESPRIMITIVE ELECTRONICS AND TELECOMMUNICATIONS NETWORKS WHILE ENGINEERING EQUIPMENT THAT CAN DETECT OR PREVENT FRAUD OR OTHER MISUSE ALL THE WHILE THE FOOT SOLDIERS LIKE MR KRZEMINSKI FERRET OUT NEW OPPORTUNITIES TO SIGN UP SHOPKEEPERS FOR THE MOMENT VISA HOLDS THE LEAD IN THE GLOBAL CARD WARS WITH 3233 MILLION CARDS WORLDWIDE AND MORE THAN A 50 SHARE OF CARD VOLUME MASTERCARD WITH 204 MILLION CARDS OUTSTANDING IS SECOND BUT PICKING UP STEAM AMERICAN EXPRESS HAS TARGETED A MORE LIMITED BUT AFFLUENT MARKET OF FREQUENT BUSINESS TRAVELERS AND WEALTHY INDIVIDUALS BUT IT ALSO IS MAKING A BIG PUSH FOR CORPORATE CLIENTS AT HOME AND ABROAD THE REAL GROWTH IN PLASTIC CARDS WILL COME INCREASINGLY FROM NEWLY INDUSTRIALIZED NATIONS LIKE TAIWAN THERE CARD USAGE BY CONSUMERS SKYROCKETED ONCE CREDIT AND FOREIGNEXCHANGE CONTROLS WERE LIFTED IN 1990 IN THE ENSUING 18 MONTHS THE NUMBER OF CARDS OUTSTANDING SOARED TO 13 MILLION FROM JUST 50000 ADJUSTING TO DIVERSE CULTURAL VALUES IS AT THE HEART OF EVERY CARDISSUER'S STRATEGY THAT'S WHY LOCAL BANKS OFTEN PLAY A CRITICAL ROLE IN ESTABLISHING CARDS FOR EITHER VISA OR MASTERCARD IN A PARTICULAR COUNTRY JUST AS IN THE US BUT WHILE LOCAL BANKS MAY BE WARY OF OPENING THEIR MARKETS TO CARDS THEY FACE PRESSURE FROM THE BIG INTERNATIONAL BANKS THAT ARE TRYING TO PRY OPEN PLACES LIKE FRANCE AND GERMANY BIG US BANKS LONG HAVE CARRIED THE CREDITCARD BANNERS ABROAD FOR VISA AND MASTERCARD AND CITICORP IS THE DOMINANT GLOBAL CONSUMER BANK ITS FRANCHISE SPANS 39 COUNTRIES WITH NEARLY 800 BRANCHES OUTSIDE NORTH AMERICA CITICORP'S CREDITCARD OPERATIONS OVERSEAS NOW HAVE SEVEN MILLION ACCOUNTS COMPARED WITH 19 MILLION IN THE US OVERSEAS CARDS EARNED APPROXIMATELY 100 MILLION AFTER TAXES LAST YEAR AND PROFITS ARE EXPECTED TO GROW AT A 20 CLIP SAYS PEIYUAN CHIA CITICORP VICE CHAIRMAN AND GLOBAL CONSUMERBANKING CHIEF THERE ARE A LOT OF OPPORTUNITIES OUTSIDE THE US SAYS MR CHIA NOT THAT THEY WILL BE EASY TO SEIZE AMERICANS LONG HAVE BEEN ENTHUSIASTIC ABOUT CHARGING THINGS WILLING TO PAY PUNISHING INTEREST RATES FOR THE PRIVILEGE OF POSTPONING PAYMENT BUT TO MANY EUROPEAN CONSUMERS WHAT AMOUNTS TO TAKING OUT A LOAN EVEN A SMALL ONE TO PAY FOR ANYTHING IS ANATHEMA GERMANS ESPECIALLY ARE RELUCTANT TO BUY ON CREDIT EUROPEAN CONSUMERS PREFER DEBIT CARDS PEOPLE IN SOME INDUSTRIALIZED COUNTRIES HAVE LITTLE USE FOR ANY KIND OF PLASTIC CARD ITALY FOR EXAMPLE HAS A SOPHISTICATED CREDIT AND BANKING SYSTEM WELL SUITED TO HANDLING CREDIT AND DEBIT CARDS BUT ITALIANS PREFER TO CARRY CASH OFTEN HUGE WADS OF IT IT IS COMMON TO SEE AN ITALIAN HANDING OVER MILLIONS OF LIRE TO PAY A LARGE UTILITY BILL IN PERSON IT'S AS IF WE'D BUILT A PERFECTLY MODERN HIGHWAY SYSTEM BUT PEOPLE CONTINUED USING COUNTRY ROADS INSTEAD SAYS A FRUSTRATED SPOKESWOMAN FOR THE ITALIAN BANKING ASSOCIATION JAPANESE CONSUMERS ARE ESPECIALLY VEXING TO THE CARD CONCERNS MOST JAPANESE HAVE A CREDIT CARD THERE ARE 200 MILLION OUTSTANDING IN THE NATION OF 120 MILLION PEOPLE BUT CARD PURCHASES AMOUNT TO LESS THAN 1 OF ALL CONSUMER TRANSACTIONS THEY HAVE THEM THEY PAY THE MEMBERSHIP FEES BUT THEY NEVER USE THEM SAYS GUNILLA BROADBENT PRESIDENT OF BAI INTERNATIONAL A NEW YORK CONSULTING FIRM JAPANESE LONG HAVE LOOKED DOWN ON CREDIT PURCHASES BUT ACQUIRE CARDS TO USE WHILE TRAVELING ABROAD THE US IN PARTICULAR THEY FEAR IS TOO CRIMERIDDEN FOR TRAVELERS TO CARRY CASH SAFELY THERE JAPAN HAS THE POTENTIAL TO BE A HIGHGROWTH MARKET FOR ANY ISSUER SAYS HITOSHI KONDO VISA'S ASSISTANT GENERAL MANAGER IN JAPAN THE CHALLENGE IS TO FIND WAYS TO PERSUADE THE JAPANESE TO USE THEIR PLASTIC AT HOME NOT SO IN TAIWAN WHERE AFTER FOUR YEARS VISA IS SO WIDELY ACCEPTED THAT ONE OF THE COUNTRY'S TOP VOCALISTS CHOU ANAN HIT THE TOP OF THE CHARTS WITH A SONG CALLED DO YOU LOVE ME MORE OR YOUR VISA CARD MORE VISA DISCOVERED THAT ALLYING WITH THE RIGHT PEOPLE AND RIGHT BANKS MADE ALL THE DIFFERENCE CARL PASCARELLA VISA'S NEW CHIEF EXECUTIVE SAYS ONCE THE CONSORTIUM DECIDED TO TARGET THE COUNTRY AN EARLY STOP WAS WITH JEFFREY KOO A POWERFUL TAIWANESE BUSINESSMAN MR KOO IS A MEMBER OF TAIWAN'S MOST POLITICALLY CONNECTED FAMILY AND OFTEN SERVES HIS COUNTRY AS AN UNOFFICIAL HIGHLEVEL ENVOY HE NOT ONLY RUNS CHINATRUST BANK ONE OF TAIWAN'S LARGEST BANKS AND THE CORNERSTONE OF A FINANCIALSERVICES EMPIRE HE ALSO IS CHAIRMAN OF THE COUNTRY'S NATIONAL CREDIT CARD CENTER FORMERLY THE ONLY BODY ALLOWED TO MARKET CREDIT CARDS DIRECTLY TO MERCHANTS IN TAIWAN THE NCCC ALSO RAN THE COUNTRY'S SOLE CREDITCARD PROCESSING CENTER VISA PERSUADED MR KOO TO JOIN ITS ASIAN BOARD VISA PUT TOGETHER A TIGER TEAM OF EXECUTIVES FROM THE ASIA/PACIFIC REGION TO TRAIN EMPLOYEES OF NCCC IN THE WORKINGS OF AN INTERNATIONAL CARD VISA SET UP AN OFFICE IN TAIWAN AND STAFFED IT WITH A FORMER EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP WHO IS TAIWANESE THEN VISA STARTED A PRINT AND BILLBOARD ADVERTISING CAMPAIGN TO INCREASE CONSUMER AWARENESS BUILDING ON AN ALREADY AGGRESSIVE VISA TRAVELER'SCHECK OPERATION IN TAIWAN ALL THE WHILE VISA AND ISSUERS SUCH AS CITIBANK WERE PRESSING REGULATORS TO OPEN THE MARKET TO THEIR CREDIT CARD WHEN THAT TIME CAME VISA WAS READY TO MOVE QUICKLY AND IT SINCE HAS BECOME THE DOMINANT CARD WITH 950000 ACTIVE CARDS IN TAIWAN MASTERCARD WHICH ENTERED THE MARKET ABOUT TWO YEARS AGO HAS 195000 ACTIVE CARD HOLDERS OBSERVERS OF THE MARKET ESTIMATE TAIWAN'S POPULATION OF 21 MILLION COULD SUPPORT AS MANY AS 10 MILLION CARDS BUT IN THEIR QUEST TO SIGN UP NEW CARD HOLDERS THE INTERNATIONAL CARD COMPANIES SOMETIMES FACE LOCAL COMPETITION THAT'S TRUE IN FRANCE WHERE ALL FRENCH RETAIL BANKS AGREED A DECADE AGO TO FORM THEIR OWN PAYMENTCARD SYSTEM VISA AND MASTERCARD ARE HONORED IN FRANCE BUT THE CARTES BLEUES DEBIT CARDS OR BLUE CARDS HAVE BECOME THE PREDOMINANT METHOD OF PAYMENT FOR EVEN SMALL TRANSACTIONS IT'S COMMON IN RESTAURANTS TO SEE WAITERS CARRYING HANDHELD ELECTRONIC TERMINALS ACROSS THE DINING ROOM TO ALLOW A CUSTOMER TO TAP IN HIS PERSONAL CODE AFTER A MEAL THE CARDS ARE COSTLY FOR BANKS SINCE THEY ARE NOT EARNING JUICY INTEREST RATES AND CUMBERSOME FOR MERCHANTS COLETTE SILJEGOVIC OWNER OF THE CAFE DE FLORE A FAMOUS RETREAT FOR INTELLECTUALS AND TOURISTS ON PARIS'S LEFT BANK REFUSES CARTES BLEUES SHE SAYS EACH TRANSACTION TAKES TOO LONG HOLDING UP THE BUSTLE OF HER CAFE WHICH SERVES SOME 5000 CUPS OF COFFEE A DAY LOOKING TO THE FUTURE THE VAST MARKET IN CHINA BECKONS SPENDING PER CARD IS HIGHER IN CHINA THAN IN ALMOST EVERY OTHER COUNTRY BUT THAT IS ONLY BECAUSE THE RELATIVELY FEW CARDS ISSUED THERE FEWER THAN THREE MILLION AT LAST COUNT ARE ALMOST ENTIRELY FOR BUSINESS USE BUSINESSES FIND CARDS PARTICULARLY APPEALING SINCE CHINA DOESN'T HAVE AN EFFICIENT MEANS OF TRANSFERRING MONEY OR PAYING BILLS FEW CONSUMERS HAVE CARDS AND THE MAJOR CARD ISSUERS ARE MOVING CAUTIOUSLY IN CHINA AT LEAST IN PART BECAUSE OF AMBIGUOUS LAWS GOVERNING PAYMENT COLLECTION THERE'S A GREAT MASS OF PEOPLE BUT CARDS HAVEN'T BEEN MASSISSUED CONCEDES VISA'S MR PASCARELLA NOT EVERY COUNTRY THAT WANTS A CREDITCARD ECONOMY GETS IT AMID THE DISINTEGRATION OF THE SOVIET UNION VIKTOR RAJEVSKI THE DEPUTY CHAIRMAN OF THE COUNCIL OF MINISTERS OF SOVIET ESTONIA FLEW TO SAN FRANCISCO TO MEET WITH EXECUTIVES OF VISA INTERNATIONAL IN CONSTRUCTING A FINANCIAL SYSTEM MR RAJEVSKI WANTED TO KNOW IF HIS BUDDING COUNTRY COULD SKIP CASH AND PROCEED RIGHT TO CHARGE CARDS HE SAID LOOK OUR ECONOMY IS BASICALLY BARTER AND OXCART' RECALLS CHARLES RUSSELL FORMER CHIEF OF VISA WHAT HE REALLY WANTED TO DO WAS AVOID THE EVOLUTION OF LARGE CURRENCIES AND CHECKS AND GO RIGHT TO AN ELECTRONIC SYSTEM WHAT HE WANTED TO DO WAS VERY INTELLIGENT ALAS ESTONIA'S OXCART ECONOMY COULDN'T AFFORD THE MASSIVE SPENDING NECESSARY TO ERECT THE COMMUNICATIONS NETWORK TO SUPPORT A FINANCIAL SYSTEM BASED ENTIRELY ON CREDIT STILL THERE IS PROGRESS JUST A FEW MONTHS AGO VISA INSTALLED THE FIRST AUTOMATICTELLER MACHINE IN TALLINN THE ESTONIAN CAPITAL THAT WAS SOMETHING OF AN EVENT HERE SAYS A SMILING SPOKESWOMAN FOR ESTONIA'S CENTRAL BANK CHARLES FLEMING IN PARIS AND JATHON SAPSFORD IN TOKYO CONTRIBUTED TO THIS ARTICLE 9402150061 940118 LETTERS TO THE EDITOR HEALTH REFORM FINANCING IS SOUND I AM VERY CONCERNED THAT THE ARTICLE BY THE HERITAGE FOUNDATION'S DANIEL J MITCHELL DISTORTS THE POSITION OF OFFICE OF MANAGEMENT AND BUDGET ANALYSTS WITH REGARD TO THE PRESIDENT'S HEALTHREFORM PLAN PRESIDENT'S COSTLY BUDGETBUSTER EDITORIAL PAGE DEC 23 OMB ANALYSTS HELPED DEVELOP THE PLAN'S FINANCING AND HAVE CONFIRMED ITS SOUNDNESS MOREOVER THE MOST AUTHORITATIVE OUTSIDE STUDY OF THE HEALTH SECURITY ACT CONDUCTED BY LEWINVHI AN INDEPENDENT CONSULTING GROUP WITH SPECIFIC EXPERTISE ON HEALTH CARE ISSUES HAS VERIFIED THAT THE PLAN'S FINANCING WORKS AND WILL REDUCE THE DEFICIT OVER THE PERIOD FROM 19952000 THE SECRET TABLES ON WHICH MR MITCHELL BASES HIS ARTICLE WERE NOTHING MORE THAN SPECULATIVE COMPUTER SPREADSHEETS PREPARED BY AN ANALYST AT AN EARLY STAGE IN THE DRAFTING OF THE HEALTH SECURITY ACT PURELY THEORETICAL THEY APPLIED WHATIF SCENARIOS TO SOME OF THE ELEMENTS OF EARLY VERSIONS OF THE HEALTHREFORM PLAN UNDER DISCUSSION LAST SUMMER ESSENTIALLY THE TABLES ANSWERED A SERIES OF HYPOTHETICAL QUESTIONS WHAT IF WE CHOOSE THIS OR THAT POLICY WHAT IF OUR ESTIMATES ARE TOO HIGH OR TOO LOW UNCERTAINTIES IDENTIFIED BY THIS EXERCISE WERE THEN THOROUGHLY ADDRESSED IN THE FINAL DRAFTING OF THE LEGISLATION THEREFORE THE TABLES DO NOT APPLY TO THE LEGISLATION NOW BEFORE THE CONGRESS AND ARE NOT RELEVANT TO ANY DISCUSSION OF THAT PLAN INTERESTINGLY MR MITCHELL DOES NOT MENTION THE FACT THAT THE WHATIF SCENARIOS IN THE TABLE INCLUDED ASSUMPTIONS THAT RESULTED IN LOWER COSTS AND MUCH GREATER DEFICIT REDUCTION THOSE SCENARIOS WERE CLEARLY DELINEATED IN THE TABLES BUT MR MITCHELL CHOSE TO IGNORE THEM APPARENTLY THEY DID NOT FIT INTO HIS AGENDA THE HEALTH SECURITY ACT CONTAINS A NUMBER OF SPECIFIC MEASURES TO ADDRESS COST UNCERTAINTIES FOR EXAMPLE A 15 CUSHION WAS ADDED TO THE ESTIMATES OF THE DISCOUNTS TO BE PROVIDED TO SMALL LOWWAGE FIRMS AND LOWINCOME WORKERS BEYOND THAT WHATEVER FISCAL RISK REMAINS IS CONTAINED BY SPECIFIC LANGUAGE IN THE ACT CAPPING FEDERAL EXPENDITURES IN THE UNLIKELY EVENT THAT THOSE CAPS ARE BREACHED A FUTURE ACT OF CONGRESS WOULD BE NECESSARY TO SPEND MORE MONEY MR MITCHELL DISMISSES THIS IMPLYING THAT CONGRESS MIGHT NOT ENACT THE DISCIPLINES PROPOSED BY THE PRESIDENT BUT THAT IS NO GROUND FOR CRITICIZING THE PLAN ITSELF ANY LEGISLATIVE PROPOSAL EVEN ONE ENDORSED BY THE HERITAGE FOUNDATION CAN BE ALTERED BY CONGRESS IN A WAY THE AUTHOR MIGHT DISAPPROVE SEE RELATED LETTER LETTERS TO THE EDITOR FIRST WE MUST FIND THE FLYING ELEPHANTS WSJ FEB 15 1994 9401180027 YY94 MM02 9402150060 940118 SOUTHERN CALIFORNIA EARTHQUAKE EXPECTED BIG ONE' HASN'T ARRIVED YET BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE THE CASUALTIES AND PROPERTY DAMAGE THE EARTHQUAKE THAT STRUCK LOS ANGELES YESTERDAY MORNING WASN'T THE BIG ONE THAT CALIFORNIANS HAVE BEEN EXPECTING FOR SEVERAL YEARS GEOPHYSICISTS SAID THE 1992 SOUTHERN CALIFORNIA QUAKE WAS 30 TIMES MORE POWERFUL THEY ALSO SAID THEY COULDN'T IMMEDIATELY DETERMINE IF YESTERDAY'S QUAKE WAS DUE TO SLIPPAGE OF A KNOWN OR A PREVIOUSLY UNDISCOVERED GEOLOGICAL FAULT THAT WON'T BE DETERMINED UNTIL SEISMOLOGICAL DATA FROM SEVERAL STATIONS HAVE BEEN ANALYZED PRELIMINARY READINGS OF SEISMOGRAPHS SHOWED THAT YESTERDAY'S EARTHQUAKE CENTERED UNDER THE LOS ANGELES COMMUNITY OF NORTHRIDGE REGISTERED ABOUT 66 ON THE RICHTER SCALE FOR MEASURING THE ENERGY RELEASED BY EARTHQUAKES IT WAS FOLLOWED BY MORE THAN A HALFDOZEN AFTERSHOCKS REGISTERING BETWEEN 30 AND 50 ON THE RICHTER SCALE THERE'LL PROBABLY BE A LOT OF AFTERSHOCKS REGISTERING 40 TO 50 ON THE SCALE FOR THE NEXT FOUR TO FIVE DAYS SAID GEOPHYSICIST STUART KOYANAGI OF THE US GEOLOGICAL SURVEY'S EARTHQUAKE INFORMATION CENTER IN GOLDEN COLO BY COMPARISON WITH YESTERDAY'S QUAKE A MAJOR QUAKE IS ONE THAT REGISTERS 70 OR HIGHER ON THE RICHTER SCALE THE JUNE 1992 EARTHQUAKE CENTERED AT THE SOUTHERN CALIFORNIA TOWN OF LANDERS NEAR THE MOJAVE DESERT KILLED ONE PERSON THOUGH IT HAD A RICHTER READING OF 75 THE OCTOBER 1989 QUAKE IN SAN FRANCISCO WHICH KILLED 63 PEOPLE HIT 71 ON THE SCALE THE AMOUNT OF DAMAGE AND THE LOSS OF LIFE FROM A QUAKE DEPENDS ON WHERE IT OCCURS AS MUCH AS ON THE AMOUNT OF ENERGY RELEASED MR KOYANAGI SAID THE NORTHRIDGE QUAKE HIT IN THE HEAVILY POPULATED SAN FERNANDO VALLEY THAT STRETCHES FOR 50 MILES NORTH OF DOWNTOWN LOS ANGELES ONLY EARTHQUAKES REGISTERING 80 OR HIGHER ARE CLASSED AS GREAT QUAKES EXAMPLES BEING THE 1964 ALASKA EARTHQUAKE 84 AND THE 1906 SAN FRANCISCO QUAKE ESTIMATED AT 83 ON THE RICHTER SCALE WE'VE LOOKED AT SOME OF THE SEISMOLOGICAL DATA HERE IN PENNSYLVANIA AND IT LOOKS LIKE A TYPICAL QUAKE FOR SOUTHERN CALIFORNIA SAID GEOPHYSICIST CHARLES A LANGSTON AT PENNSYLVANIA STATE UNIVERSITY IN UNIVERSITY PARK EARTHQUAKE RESEARCHERS HADN'T PREDICTED THE NORTHRIDGE QUAKE AT LEAST NOT THAT WE KNOW OF SAID MR KOYANAGI OF THE GEOLOGICAL SURVEY NOR WAS THERE ANY WARNING OF AN IMPENDING QUAKE ALTHOUGH MR KOYANAGI NOTED THAT LAST WEEK THERE WERE SEVERAL SMALL QUAKES OFF THE COAST OF CALIFORNIA NEAR SANTA MONICA THAT WERE SUSPICIOUS BUT THEY WEREN'T QUITE IN THE SAME AREA AS YESTERDAY'S QUAKE NEVERTHELESS IT WASN'T UNEXPECTED IN THE SENSE THAT SOUTHERN CALIFORNIA HAS BEEN HAVING A LOT OF QUAKES IN THE LAST FEW YEARS SAID PENN STATE'S DR LANGSTON THE REPEATED SHAKING OF SOUTHERN CALIFORNIA SEEMS TO HAVE SOMETHING TO DO WITH THE MOUNTAIN BUILDING THAT'S GOING ON THERE HE SAID THE SAN FERNANDO VALLEY IS CREATED BY THE SANTA MONICA AND SAN GABRIEL MOUNTAIN RANGES THAT HAVE BEEN INCHING TOWARD EACH OTHER ONE QUESTION GEOPHYSICISTS PROBABLY WILL INVESTIGATE IN COMING MONTHS IS WHETHER THE NORTHRIDGE QUAKE HAS ANY RELATION TO THE LANDERS QUAKE IN JUNE 1992 THE LANDERS QUAKE WAS EXTREMELY UNUSUAL BECAUSE IT SEEMED TO TRIGGER EARTHQUAKES ACROSS THE WESTERN US FOR WEEKS AFTERWARDS INCLUDING QUAKES AS FAR AWAY AS YELLOWSTONE NATIONAL PARK AND CASCADE IDAHO AS THOUGH IT HAD SHAKEN UP THE SUBTERRANEAN GEOLOGY OF THE WHOLE EARTHQUAKEPRONE WEST JANUARY 17 1994 NORTHRIDGE AN ESTIMATED 66MAGNITUDE QUAKE CENTERED NEAR THIS SAN FERNANDO VALLEY TOWN AT LEAST TWO DOZEN DEAD JUNE 28 1992 LANDERS A 75 EARTHQUAKE IN THIS TOWN NEAR SAN BERNARDINO AND A 66 AFTERSHOCK AT BIG BEAR LAKE KILL ONE TODDLER OCT 17 1989 LOMA PRIETA SANTA CRUZ MOUNTAINS 71 QUAKE CAUSES WIDESPREAD DAMAGE IN THE SAN FRANCISCO BAY AREA 63 PEOPLE DIE OCT 1 1987 WHITTIER A 59 QUAKE AND A 53 AFTERSHOCK KILL EIGHT PEOPLE JAN 24 1980 LIVERMORE A 58 QUAKE STRIKES THE AREA EAST OF SAN FRANCISCO AND DAMAGES A NUCLEAR WEAPONS LABORATORY FEB 9 1971 SYLMAR A 65 QUAKE IN THE SAN FERNANDO VALLEY KILLS 65 PEOPLE JULY 21 1952 BAKERSFIELD A 77 QUAKE IN AN AREA 50 MILES NORTH OF LOS ANGELES KILLS 12 PEOPLE MARCH 10 1933 LONG BEACH A 63 QUAKE KILLS 115 PEOPLE APRIL 1819 1906 SAN FRANCISCO EARTHQUAKE AND FIRES LEVEL THE CITY KILLING AT LEAST 700 PEOPLE SCIENTISTS ESTIMATE THAT THE QUAKE WOULD HAVE REGISTERED 83 ON THE RICHTER SCALE SEE RELATED LETTER LETTERS TO THE EDITOR QUAKE MAGNITUDES WSJ FEB 15 1994 9401180073 YY94 MM02 9402140170 940214 FRANCE'S CAP GEMINI EXPECTS TO REPORT WIDENED LOSS FOR '93 SPECIAL TO THE WALL STREET JOURNAL PARIS CAP GEMINI SOGETI SA THE FRENCH COMPUTER SOFTWARE AND SERVICES GROUP ESTIMATED THAT IT WILL POST A LOSS OF 434 MILLION FRANCS 729 MILLION FOR 1993 WIDENING FROM A 72 MILLION FRANC LOSS IN 1992 CAP GEMINI NOTED THAT THE 1992 LOSS WOULD HAVE BEEN 333 MILLION FRANCS WITHOUT A 261 MILLION FRANC CAPITAL GAIN ON THE SALE OF SOME PARIS REAL ESTATE CAP GEMINI ALSO ANNOUNCED PLANS TO BOOST ITS CAPITAL RESOURCES BY 15 BILLION FRANCS ITS PARENT COMPANY SOGETI SA IS EXPECTED TO SUBSCRIBE TO THE ISSUE AT A PROPORTION EQUIVALENT TO ITS 615 STAKE AND THE SOFTWARE GROUP SAID IT HAS DECIDED TO INTENSIFY EFFORTS IN 1994 TO DISPOSE OF NONESSENTIAL ASSETS THOSE EFFORTS RECENTLY RESULTED IN THE SALE OF STAKES IN SWEDEN'S JACOBSON & WIDMARK AS WELL AS CARELCOMP IN FINLAND AND FRANCE'S COPERNIQUE SA LOOKING AHEAD TO THIS YEAR'S PERFORMANCE CAP GEMINI SAID AN ANTICIPATED IMPROVEMENT OF ECONOMIC CONDITIONS SHOULD ALLOW THE GROUP TO PROGRESSIVELY RETURN TO GROWTH AND PROFITABILITY MEANWHILE IN GERMANY CAP GEMINI ANNOUNCED PLANS TO MERGE CAP DEBIS WITH DEBIS SYSTEMHAUS IT SAID THE MERGER WOULD REINFORCE COOPERATION BETWEEN CAP GEMINI AND GERMAN PARTNER DEBIS CAP GEMINI SAID 1993 CONSOLIDATED REVENUE IS ESTIMATED AT ABOUT 11 BILLION FRANCS DOWN 74 FROM 119 BILLION FRANCS THE PREVIOUS YEAR CAP GEMINI DIDN'T SPECIFY LAST YEAR'S OPERATING PROFIT ALTHOUGH THE COMPANY NOTED THAT IT DIPPED TO ABOUT 2 OF REVENUE FROM 29 IN 1992 THE FIGURE IS AFTER AMORTIZATION OF GOODWILL AFTER YEARS OF ACQUISITIONS AND FIVEFOLD REVENUE GROWTH BETWEEN 1985 AND 1992 CAP GEMINI HAS BEEN HIT BY THE DOWNTURN IN THE COMPUTER INDUSTRY AND THE RECESSION IN GENERAL 9402140169 940214 INTERNATIONAL SPAIN'S HIGH COURT LETS KUWAITI AGENCY SUE EXEMPLOYEES SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S HIGH COURT RULED TO ADMIT A SUIT BROUGHT BY THE KUWAIT INVESTMENT OFFICE AGAINST SEVEN OF ITS FORMER EMPLOYEES FRIDAY'S RULING CAME IN RESPONSE TO AN APPEAL FILED BY THE KIO AFTER THE COURT'S JUDGE FOR MONETARY AFFAIRS REJECTED THE SUIT FOUR TIMES LAST YEAR ON THE GROUNDS THAT IT DIDN'T PROVIDE ENOUGH EVIDENCE OF THE ALLEGED CRIMES THE KIO CLAIMS THAT FORMER EXECUTIVES OF GRUPO TORRAS SA THE KIO'S SPANISH HOLDING COMPANY LOST OR DIVERTED MORE THAN 100 BILLION PESETAS 7025 MILLION OF KUWAITI INVESTMENTS IN SPAIN BETWEEN 1986 AND 1992 ACCORDING TO THE KIO TORRAS WAS FORCED INTO RECEIVERSHIP IN DECEMBER 1992 BECAUSE OF GROSS MISMANAGEMENT BY ITS EXECUTIVES A CRIME THE JUDGE FOR MONETARY AFFAIRS SAID WASN'T INCLUDED IN SPAIN'S PENAL CODE BUT THE HIGH COURT SAID IN A WRIT THAT THE CRIMES ALLEGED IN THE SUITFALSIFICATION OF MERCANTILE AND PUBLIC DOCUMENTS PRICE MANIPULATION FRAUD AND TAX EVASIONARE SUFFICIENTLY DOCUMENTED WITH THE DESIGNATION OF PEOPLE DATES PLACES AND VOLUMES THAT HAVE BEEN EVADED FOR AN ESTIMATED TOTAL OF MORE THAN 100 BILLION PESETAS LAWYERS FOR THE KIO FIRST FILED A 114PAGE SUIT AGAINST ITS FORMER EXECUTIVES IN JANUARY 1993 NAMING AS DEFENDANTS FAHD ALSABAH FORMER CHAIRMAN OF THE KIO AND TORRAS FOUAD JAFFAR THE KIO'S FORMER GENERAL MANAGER WHO RESIGNED IN EARLY 1990 AND JAVIER DE LA ROSA THE FORMER DEPUTY CHAIRMAN OF TORRAS UNTIL HIS RESIGNATION IN MAY 1992 THE OTHER FOUR DEFENDANTS WERE SPANISH EXECUTIVES OF TORRAS AND CLOSE COLLABORATORS OF MR DE LA ROSA FROM 1986 TO 1992 THE KIO WHICH CLAIMS IT LOST 5 BILLION ON ITS INVESTMENTS IN SPAIN HAS SOUGHT TO REDUCE ITS PRESENCE THERE SINCE GRUPO TORRAS SUSPENDED PAYMENTS ON ITS 243 BILLION PESETAS OF DEBT OF THE KIO'S FOUR PRINCIPAL UNITS IN THE CHEMICAL FOOD REALESTATE AND PAPER SECTORS ONLY THE SUGAR COMPANY EBRO AGRICOLAS CIA DE ALIMENTACION HAS MADE A PROFIT IN THE PAST TWO YEARS 9402140168 940214 TELLABS INC SEES EUROPE AS SITE FOR EXPANSION AS DOMESTIC GAINS EASE FIRM LOOKS OVERSEAS FOR GROWTH POTENTIAL BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL LISLE ILL TELLABS INC AFTER FOUR YEARS OF SALES GROWTH IN NORTH AMERICA IS FOCUSING ON EUROPEAN MARKETS FOR THE NEXT FISCAL YEAR SAID PRESIDENT AND CHIEF EXECUTIVE OFFICER MICHAEL J BIRCK IN AN INTERVIEW MR BIRCK SAID THE TELECOMMUNICATIONS CONCERN'S DOMESTIC BUSINESS HAS GONE THROUGH MOST OF ITS GROWTH HE SAID WHAT WE WANT NOW IS TO BE INVOLVED IN THE GLOBAL MARKETPLACE AND MOVE TOWARDS BECOMING A BILLIONDOLLAR COMPANY TELLABS A MAKER OF VOICE AND DATA EQUIPMENT FOR PHONE COMPANIES HAS ALREADY IMPRESSED WALL STREET WITH ITS STEADY GROWTH OVER THE PAST YEAR IT HAS PROFITED PRIMARILY FROM THE TELECOMMUNICATIONS INDUSTRY'S TREND TOWARD CROSSCONNECT SYSTEMS WHICH ENABLE FIBEROPTIC NETWORKS TO CARRY VOICE AND DATA TRANSMISSIONS IN 1993 TELLABS POSTED A 90 INCREASE IN EARNINGS TO 32 MILLION OR 145 A SHARE ON SALES OF 3205 MILLION AFTER INTRODUCING ITS FLAGSHIP TITAN DIGITAL CROSSCONNECT SYSTEM IN 1991 THE COMPANY ADDED TO SALES IN 1993 WITH VARIOUS TITANBASED HARDWARE AND SOFTWARE PACKAGES TITAN SALES ORIGINALLY PROJECTED BY ANALYSTS TO BE 60 MILLION LAST YEAR TOPPED 80 MILLION SURPRISINGLY STRONG DEMAND FOR ECHOCANCELERS ALSO ADDED 50 MILLION TO THE COMPANY'S SALES BUT WITH TELLABS' DOMESTIC GROWTH STARTING TO EASE MR BIRCK NOW SEES CENTRAL AND EASTERN EUROPE AS THE IMPORTANT SITES FOR EXPANSION NORTH AMERICA HAS SLOWED DOWN HE SAID BUT THE REST OF THE WORLD ISN'T IN THAT SITUATION WE'RE PLANNING ON GOING IN AND LEAPFROGGING OVER A LOT OF EUROPE'S OUTDATED TECHNOLOGY LAST YEAR TELLABS ACQUIRED MARTIS OY A CLOSELY HELD FINNISH MAKER OF TELECOMMUNICATIONS NETWORKING EQUIPMENT IN A DEAL VALUED AT 70 MILLION THE ACQUISITION WAS AIMED AT PROVIDING A MAJOR EUROPEAN BUSINESS CENTER WHEN COMBINED WITH ITS EXISTING FACILITY IN SHANNON IRELAND AT THE SAME TIME TELLABS HAS EXPANDED ITS TIES TO A SWEDISH DISTRIBUTOR AND IMPROVED ITS CANADIAN RESEARCH FACILITY MR BIRCK WANTS TELLABS' INTERNATIONAL BUSINESS WHICH CURRENTLY ACCOUNTS FOR 30 OF TOTAL REVENUE TO GROW TO 50 OF REVENUE BY THE END OF THE YEAR THAT'S GOING TO BE A CHALLENGE SINCE I DON'T THINK OUR DOMESTIC NUMBERS ARE GOING TO SIT STILL HE SAID INTERNATIONAL SALES ARE GOING TO HAVE TO HIT A MOVING TARGET THE PUSH TOWARD EUROPE IS CRUCIAL FOR TELLABS TO AVOID BEING STEPPED ON BY GIANT COMPETITORS NORTHERN TELECOM LTD AND AMERICAN TELEPHONE & TELEGRAPH CO COMPANIES THE EXECUTIVE CALLS ELEPHANTS MOREOVER THE EXPANSION COULD SERVE TO REINFORCE THE COMPANY'S CREDIBILITY AMONG ITS CUSTOMERS THIS INDUSTRY DOESN'T TAKE TO NEWCOMERS VERY EASILY SAID MR BIRCK CUSTOMERS HAVE TO HAVE SOME CONFIDENCE THAT WE'RE UP TO THE TASK OF SERVING THEM MR BIRCK A 56YEAROLD FORMER ENGINEER HELPED START TELLABS 20 YEARS AGO AND HAS BEEN WIDELY PRAISED AS A MANAGER WHO PAYS CLOSE ATTENTION TO THE DESIGN AND RESEARCH OF HIS COMPANY'S PRODUCTS TELLABS SPENT FIVE YEARS DEVELOPING TITAN AND LAST YEAR ALLOCATED 16 OF TOTAL REVENUE TO LONGTERM RESEARCH HE'S NOT AFRAID TO INVEST SHAREHOLDERS' DOLLARS IN RESEARCH WHEN HE BELIEVES THERE'S A BIG PAYOFF SAID STEVEN D LEVY AN ANALYST WITH HAMBRECHT & QUIST WITH THE TITAN IT HAS PAID OFF IN SPADES MR BIRCK ACKNOWLEDGES THAT WHEN DISCUSSIONS HERE RETURN TO DESIGN AND PRODUCT THAT'S WHEN I GET THE MOST ENERGIZED DESPITE THE PROMISING PICTURE IN EUROPE AND TELLABS' STEADY EARNINGS GROWTH THE COMPANY'S STOCK HAS DECLINED SINCE LAST OCTOBER AFTER THE STOCK RALLIED TO AN OCTOBER HIGH OF 54375 FROM A SPLITADJUSTED 12625 IN APRIL TELLABS' THIRDQUARTER RESULTS MET ANALYSTS' EXPECTATIONS BUT DISAPPOINTED WALL STREET OBSERVERS WHO HAD BEEN HOPING FOR MORE PEOPLE SET THESE ESTIMATES AND YOU'RE SUPPOSED TO BEAT THEM EVERY TIME SAID MR BIRCK IT REALLY DOESN'T HAPPEN THAT WAY IN LATE NASDAQ STOCK MARKET TRADING ON FRIDAY TELLABS SHARES WERE QUOTED AT 5175 UP 225 FOR THE CURRENT FIRST QUARTER BIRCK EXPECTS EARNINGS IN THE RANGE OF 23 TO 26 CENTS A SHARE REFLECTING A 3FOR2 STOCK SPLIT IN NOVEMBER THE COMPANY EARNED AN ADJUSTED 26 CENTS A SHARE IN 1993'S FIRST QUARTER INCLUDING A GAIN OF SEVEN CENTS FOR AN ACCOUNTING ADJUSTMENT 9402140167 940214 CLOSED END FUNDS SOME CLOSEDEND MUTUAL FUNDS WEREN'T ABLE TO REPORT NET ASSET VALUES ON FRIDAY BECAUSE OF A SEVERE SNOW STORM ALONG THE EAST COAST PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9402140166 940214 MUTUAL FUNDS WITH LOADS FIGHT BACK ADS DEFEND SALES COMMISSIONS TOUTING SERVICE BY MARY ROMANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MUTUALFUND GROUPS THAT CHARGE SALES COMMISSIONS ARE DISCOVERING THEY HAVE TO WORK A BIT HARDER LOAD GROUPS ARE WAKING UP TO THE FACT THAT THEY'RE LOSING MARKET SHARE SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER MONEY WAS COMING IN BUSINESS WAS GOOD THEY WERE TURNING IN RECORD PROFITS BUT GOING FORWARD INVESTORS ARE ACTIVELY SEEKING NOLOAD FUNDS NOLOAD FUNDS HAVE MADE TREMENDOUS GAINS SINCE 1988 WHEN THEY ACCOUNTED FOR ABOUT 37 OF NEW STOCK AND BONDFUND SALES LAST YEAR THE NOLOAD FUNDS CAPTURED 43 OF THE MARKET NEW SALES OF NOLOAD FUNDS IN 1993 WERE 1879 BILLION OR 43 WHILE LOADFUND SALES WERE 2495 BILLION OR 57 ACCORDING TO THE MUTUALFUND TRADE GROUP INVESTMENT COMPANY INSTITUTE FUND GROUPS ACKNOWLEDGE THEY'VE LET NOLOAD FUNDS BATTER THEIR REPUTATIONS TO SAY THAT ISN'T A PART OF IT WOULD BE WRONG WE'VE ABDICATED THE PLAYING FIELD SAID RICHARD REDEKER CHIEF EXECUTIVE OF PRUDENTIAL MUTUAL FUNDS A UNIT OF PRUDENTIAL SECURITIES THAT SELLS ITS FUNDS THROUGH BROKERS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ THE LOADFUND INDUSTRY HAS DONE A LOUSY JOB OF MARKETING PROFESSIONAL ADVICE SAID JERRY POTTS A SENIOR VICE PRESIDENT AND DIRECTOR OF SALES DEVELOPMENT AT MASSACHUSETTS FINANCIAL SERVICES A BOSTON UNIT OF SUN LIFE ASSURANCE CO OF CANADA THE NOLOADS HAVE SPENT MORE MONEY IN ADVERTISING AND THEY'VE BEEN MORE VOCAL AS A GROUP TO COMBAT THE TREND MUTUALFUND GROUPS ARE PROMOTING THE MERITS OF LOADFUND INVESTING LAST WEEK BOSTONBASED PUTNAM INVESTMENTS A UNIT OF MARSH & MCLENNAN COS UNVEILED A SERIES OF PRINT ADVERTISEMENTS STRESSING HOW FINANCIAL ADVISERS HELP INVESTORS SELECT MUTUAL FUNDS MASSACHUSETTS FINANCIAL SERVICES STARTED SIMILAR ADS IN DECEMBER LAST FALL PASADENA FUNDS RUN BY ROGER ENGEMANN MANAGEMENT CO OF PASADENA CALIF BROUGHT OUT A BROCHURE TITLED TEN GOOD REASONS WHY YOU SHOULD PAY A MUTUAL FUND LOAD WITH A CHOICE OF MORE THAN 4000 FUNDS AND INDUSTRY JARGON SUCH AS INVERSE STRIPS AND COLLATERALIZED MORTGAGE OBLIGATIONS TO COMPLICATE DECISIONMAKING THE RIGHT FUND CAN BE DIFFICULT TO FIND IF AN INVESTOR DOESN'T HAVE THE TIME PATIENCE OR KNOWLEDGE MASSACHUSETTS FINANCIAL'S MR POTTS SAID MANY INVESTORS END UP CHASING FUNDS IN A FROTHY STOCK MARKET OR SIMPLY PICK THE HOTTEST PRODUCT THAT'S WHERE A BROKER OR FINANCIAL PLANNER COMES IN THE PASADENA FUNDS' BROCHURE SAYS A FINANCIAL ADVISER WITH WHOM YOU ARE COMFORTABLE WILL HELP YOU UNDERSTAND THE TERMS AND DECIDE WHETHER TO BUY A VOLATILE OR CONSERVATIVE FUND THE MASSACHUSETTS FINANCIAL ADS POSE QUESTIONS SUCH AS WHEN SHOULD I START INVESTING FOR TAXFREE INCOME OR IF A BOND HAS A GUARANTEED RATE OF RETURN WHY DOES ITS PRICE FLUCTUATE THE ADS' ANSWER ASK A FINANCIAL ADVISER NOLOAD GROUPS TAKE ISSUE WITH THE ADVERTISING CAMPAIGNS YOU MIGHT BE GETTING INVESTMENT ADVICE BUT ONLY ON THE PRODUCTS THE BROKER IS GOING TO MAKE MONEY ON SAID BRIAN BLOMQUIST CHAIRMAN OF THE 100 NOLOAD MUTUAL FUND COUNCIL AND A VICE PRESIDENT WITH THE LINDNER FUNDS IN ST LOUIS MR BLOMQUIST ALSO SAID BROKERS AND FEEBASED FINANCIAL ADVISERS ARE NOT THE SAME FINANCIAL ADVISERS CHARGE A PERCENTAGE OF ASSETS TO BE INVESTED AND SELECT APPROPRIATE CHOICES FROM AMONG 4000 FUNDS BROKERS SELL INHOUSE PRODUCTS AND OUTSIDE FUNDS THAT HAVE SELLING AGREEMENTS WITH THEIR FIRMS LOAD GROUPS HOWEVER ARE ON THE RIGHT TRACK AFTER BEING SO LONG ON THE DEFENSIVE MORNINGSTAR'S MR PHILLIPS SAID THEY HAVEN'T TRUMPETED THEIR STRONGER CASE THAT IF YOU PAY A LOAD YOU GET AN ADDED BENEFIT OF SERVICE HE SAID LOAD' IS SUCH A HIDEOUS WORD HOW DO YOU MAKE A CASE FOR A LOAD WHAT YOU DO IS SAY THAT FOR INVESTORS WHO NEED HELP THEY GET SOMEONE TO SIT DOWN AND EDUCATE THEM ABOUT WHAT THEY'RE INVESTING IN AND WHY BUT MANY LOADFUND GROUPS ARE THEIR OWN WORST ENEMY MR PHILLIPS SAID INSTEAD OF TOUTING THE ADVANTAGES OF USING A BROKER OR A FINANCIAL PLANNER LOAD GROUPS ARE SHUFFLING PRICING AND CONFUSING INVESTORS THEY'RE TRYING TO SAY WE CAN BE NOLOADS TOO' BUT THEY CAN'T MR PHILLIPS SAID SHUFFLING FEES IS INSULTING TO BROKERS INSTEAD OF BEING UPFRONT THEY'RE TRYING TO MAKE IT LOOK MORE LIKE NOLOADS IT'S LIKE SAYING THEY'RE DOING SOMETHING WRONG IN THE FIRST PLACE IN GENERAL A FUND SHARES CHARGE AN UPFRONT COMMISSION WHILE B SHARES ARE SOLD WITHOUT THAT CHARGE BUT USUALLY CARRY A COMMISSION IF AN INVESTOR REDEEMS THE SHARES IN THE FIRST FEW YEARS B SHARES ALSO USUALLY CARRY A HIGHER YEARLY EXPENSE RATIO THAN A SHARES NOW ADDED ARE C AND D SHARES WHICH CHARGE A SALES COMMISSION FROM YEARLY FUND EXPENSES THESE LEVEL LOAD PRICINGS ON FUNDS ARE ATTRACTING NOLOAD INVESTORS AT J & W SELIGMAN & CO A NEW YORK MONEY MANAGER THAT OFFERS 30 FUNDS SAID DONALD PITTI A MANAGING DIRECTOR WHILE SOME INVESTORS RESIST PAYING AN UPFRONT SALES CHARGE AND MANY CALL FOR LOWER FEES THEY STILL WANT FINANCIAL ADVICE MR PITTI SAID AND THAT MAKES THEM WILLING TO PAY A 1 YEARLY FEE THAT GOES TO BROKERS WITH THE SELIGMAN FUNDS THE CHARGE DROPS TO 025 A YEAR WHEN THE TOTAL AMOUNT PAID BY THE INVESTOR REACHES 6 1/4 ALONG WITH THE NEW PRICING SELIGMAN PLANS NEW ADVERTISEMENTS WITH THE WORKING TITLE OF NO CHARGES NO FEES NO HELP MR PITTI SAID MORNINGSTAR'S MR PHILLIPS SAID LOAD GROUPS CAN'T GET BY WITH ADVERTISEMENTS ALONE THEY NEED TO TRAIN THEIR SALES FORCES AND MAKE SURE BROKERS RECOMMEND THE RIGHT FUNDS AND NOT SIMPLY GENERATE COMMISSIONS HE SAID PUTNAM SAYS THAT IN ADDITION TO EDUCATING ITS SALES FORCE IT HAS REWRITTEN FUND PROSPECTUSES AND INVESTOR LITERATURE TO MAKE FINANCIAL TERMS MORE READERFRIENDLY IT'S SO LATE IN THE GAME TO MAKE THIS POSITIVE CASE IF IT'S ONLY GOING TO BE HALFHEARTED MR PHILLIPS SAID 9402140165 940214 TECHNOLOGY IBM WILL MAKE NEW CMOS CHIPS FOR RIVAL UNISYS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP AGREED TO MAKE A SOPHISTICATED NEW GENERATION OF MAINFRAME CHIPS FOR ITS OLD RIVAL UNISYS CORP ACCORDING TO INDUSTRY EXPERTS FAMILIAR WITH THE DEAL THE AGREEMENT TO BE ANNOUNCED TOMMORROW PROVIDES IBM WITH A SOLID CUSTOMER FOR ITS CHIP MANUFACTURING BUSINESS WHILE UNISYS WHICH HAS BEEN TRYING TO MAKE FEWER PARTS FOR ITS COMPUTERS GAINS A RELIABLE SUPPLIER MOTOROLA CORP AND INTEL CORP ARE TWO OF UNISYS' BIGGEST SUPPLIERS NOW EXACT TERMS OF THE CONTRACT BETWEEN IBM AND UNISYS WEREN'T AVAILABLE IBM ABOUT ONE YEAR AGO INCREASED ITS DRIVE TO MAKE AND SUPPLY MICROPROCESSORS FOR OUTSIDE CUSTOMERS THE NEW CHIPS ARE BASED ON THE CMOS DESIGN THAT RUNS PCS IBM IS CONVERTING ITS MAINFRAME LINE TO RUN ON CMOS BECAUSE THOSE CHIPS ARE MORE EFFICIENT AND LESS COSTLY TO MANUFACTURE THAN BIPOLAR CHIPS THAT CURRENTLY DRIVE THE MAINFRAME BASED IN BLUE BELL PA UNISYS WHICH IS AHEAD OF THE INDUSTRY IN THE CMOS TRANSITION WOULD BECOME THE LARGEST OUTSIDE CUSTOMER OF CMOS CHIPS MADE BY IBM THOSE FAMILIAR WITH THE AGREEMENT SAID UNISYS WOULD PROVIDE THE DESIGN FOR ITS OWN VERSION OF CMOS FOR IBM TO MANUFACTURE IBM WHICH HAS NUMEROUS SUPPLY AGREEMENTS WITH OTHER COMPUTER MAKERS HAS SAID IT IS ACTIVELY SEEKING OTHER CUSTOMERS THE COMPANY HAS BEEN A BIG MANUFACTURER OF INTEL CHIPS FOR ITS OWN COMPUTERS BUT ITS BIGGEST PRODUCTION EFFORT NOW IS CENTERED ON THE NEW POWERPC CHIP A HIGHSPEED CHIP BASED ON THE RISC ARCHITECTURE WHICH STANDS FOR REDUCED INSTRUCTION SET COMPUTING IBM HAS AN AGREEMENT TO MAKE POWERPC CHIPS FOR APPLE COMPUTER WHICH IS CONVERTING ITS PCS TO RUN ON THE POWERPC DESIGNED BY MOTOROLA IBM AND APPLE POWERPC IS INDEPENDENTLY MANUFACTURED BY MOTOROLA AND IBM BASED IN ARMONK NY IBM MAKES BOTH THE POWERPC AND CMOS CHIPS IN BURLINGTON VT SUPPLY AGREEMENTS FOR THESE CHIPS AREN'T EXPECTED TO AFFECT EMPLOYMENT OR MANUFACTURING AT THE HUDSON VALLEY NY BIPOLAR CHIP PLANTS WHICH HAVE TAKEN HUGE HITS AS MAINFRAME PRODUCTION SLOWS AND THE CMOS TRANSITION OCCURS 9402140164 940214 WANTED A PIONEERING SPIRIT WHO WOULD LOVE TO RECHARGE BATTERIES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL LOST IN THE DEBATE OVER ELECTRIC VEHICLES IS AN UGLY TRUTH THAT MAY ULTIMATELY WIND UP ON OPRAH ELECTRIC VEHICLES CAN BE BAD FOR YOUR LOVE LIFE SO SAYS CLARE BELL OF SAN FRANCISCO MS BELL EDITS CURRENT EVENTS A NATIONAL NEWSLETTER FOR ELECTRICVEHICLE ENTHUSIASTS INSPIRED BY HER OWN ROCKY RELATIONSHIP MS BELL WROTE A COLUMN IN THE FEBRUARY ISSUE ENTITLED WAYS TO KEEP YOUR EV AND YOUR LOVER IF HAVING AN EV IN YOUR LIFE IS IMPORTANT TO YOU EXPLAIN WHY WITHOUT GETTING ON A SOAPBOX SUGGESTS MS BELL EVEN IF YOUR PARTNER DOESN'T AGREE HE OR SHE CAN EMPATHIZE AND UNDERSTAND WELL MAYBE SAYS COLEMAN EASTON MS BELL'S LOVER OF 12 YEARS AFTER ALL ELECTRIC VEHICLES CAN BE EXPENSIVE AND TIME CONSUMING HE SAYS MS BELL HERSELF HAS SPENT MORE THAN 20000 TO GET A DILAPIDATED VOLKSWAGEN BEETLE CHASSIS AND A WORNOUT PORSCHE 914 SPORTS CAR TO RUN ON ELECTRICITY PROJECTS THAT KEPT HER IN THE GARAGE MANY NIGHTS TODAY EVEN SHE ADMITS THAT SOME OF THOSE NIGHTS MIGHT HAVE BEEN BETTER SPENT ELSEWHERE AND THERE ARE ALL THOSE NIGHTS AWAY FROM HOME AT ELECTRIC AUTO ASSOCIATION MEETINGS THERE WERE TIMES SHE COULDN'T GET BACK MR EASTON RECALLS SHE HAD TO STAY SOMEWHERE ELSE BECAUSE THE CAR NEEDED TO BE RECHARGED OF COURSE SOME COUPLES SAY THEY GET A CHARGE OUT OF ELECTRIC VEHICLES MARY ANN CHAPMAN OF TUCSON ARIZ SAYS SHE AND HER HUSBAND SPENT WEEKS WORKING TOGETHER ON VEHICLES THEY WERE CONVERTING INTO ELECTRICS INDEED WITHIN FOUR MONTHS OF THEIR FIRST RIDE TOGETHER IN AN ELECTRIC VEHICLE THEY MARRIED WE'RE AN 80HOURSAWEEK ELECTRICVEHICLE COUPLE SAYS MS CHAPMAN WHO OPERATES HER OWN ELECTRICVEHICLE BUSINESS FORTUNATELY COUNSELING HAS HELPED MR EASTON TO BETTER COPE WITH MS BELL'S FASCINATION WITH ELECTRIC VEHICLES MS BELL ALSO FOLLOWS SOME OF HER OWN ADVICE BUDGETING MORE QUALITY TIME WITH MR EASTON IN FACT THE TWO OFTEN COLLABORATE ON ROMANCE NOVELS BUT MR EASTON WHO STICKS TO DRIVING HIS 1989 GASOLINEPOWERED HONDA ACCORD SAYS HE MAY ALSO PURSUE A PROJECT OF HIS OWN I WAS THINKING ABOUT A ROMANCE NOVEL ABOUT A COUPLE WHO SQUABBLE OVER AN ELECTRIC VEHICLE HE SAYS 9402140163 940214 INTERNATIONAL WESTERN GERMAN RETAIL SALES WIESBADEN GERMANY WESTERN GERMAN RETAIL SALES FELL AN INFLATIONADJUSTED 6 IN DECEMBER FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID THE DECEMBER DROP FROM A YEAR EARLIER WAS SLIGHTLY BETTER THAN ANALYSTS' EXPECTATIONS OF ROUGHLY 66 DECLINE 9402140161 940214 WHO'S NEWS LONG ISLAND LIGHTING CO LONG ISLAND LIGHTING CO HICKSVILLE NY ANTHONY NOZZOLILLO 45 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER AT THIS UTILITY SUCCEEDING RALPH T BRANDIFINO WHO LEFT THE COMPANY IN SEPTEMBER THEODORE A BABCOCK 39 WAS NAMED TREASURER SUCCEEDING MR NOZZOLILLO 9402140160 940214 TIMBERLAND'S 4THQUARTER RESULTS FAIL TO MEET EXPECTATIONS STOCK PLUNGES BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL TIMBERLAND CO'S STOCK FELL 19 AFTER THE COMPANY REPORTED LOWERTHANEXPECTED FOURTHQUARTER RESULTS ATTRIBUTED TO PRICE CUTS IN ITS OUTDOORSHOE LINE THE COMPANY ALSO CONFIRMED THAT IT FORECAST A PROFITLESS FIRST SIX MONTHS OF 1994 IN A CONFERENCE CALL WITH SECURITIES ANALYSTS THE PREDICTION HEIGHTENED WALL STREET'S FEARS ABOUT THE DAMAGE THAT TIMBERLAND WILL INCUR FROM LOWPRICED OUTDOOR SHOES INTRODUCED BY COMPETITORS INCLUDING NIKE INC AND REEBOK INTERNATIONAL LTD ANALYSTS SAID THAT IN ITS FIGHT FOR MARKET SHARE THE COMPANY'S PRICE CUTS ON CERTAIN PRODUCT LINES HAVE HURT PROFIT MARGINS SHARES OF TIMBERLAND WHICH IS BASED IN HAMPTON NH TUMBLED 9875 TO 4350 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY FOR THE FOURTH QUARTER TIMBERLAND'S NET INCOME ROSE 46 TO 7 MILLION OR 62 CENTS A SHARE COMPARED WITH NET OF 48 MILLION OR 44 CENTS A SHARE ANALYSTS WERE EXPECTING THE LATEST QUARTERLY RESULTS TO BE 65 CENTS A SHARE SALES ROSE 40 TO 1232 MILLION COMPARED WITH 886 MILLION IN THE YEARAGO QUARTER ANALYSTS SAID THE COMPANY MAINTAINED IN ITS FRIDAY CONFERENCE CALL THAT IT IS STILL COMFORTABLE WITH EXPECTATIONS OF 1994 NET INCOME OF 3 A SHARE THEY ALSO SAID THE COMPANY FORECAST THAT PRICE CUTS WOULD SHAVE 10 MILLION OFF GROSS PROFITS OR PROFITS BEFORE TAXES AND INTEREST IN 1994 THE COMPANY DECLINED TO DISCUSS THESE AND OTHER DETAILS OF THE CALL ANALYSTS REMAINED CAUTIOUS I'M SKEPTICAL I'VE LOWERED MY 1994 ESTIMATE FROM 335 TO 275 SAID STEVEN FRANKEL AN ANALYST AT ADAMS HARKNESS & HILL INC TIMBERLAND'S NICHE OF OUTDOOR SHOES AND BOOTS RECENTLY HAS ATTRACTED MORE COMPETITION AS FASHION TRENDS HAVE SHIFTED FROM THE 1980S SNEAKER BOOM WITH THE ADDITION OF NIKE REEBOK AND OTHERS THE MARKET HAS GROWN CROWDED PROMPTING PRICE CUTS TIMBERLAND'S TOPOFTHELINE FOOTWEAR HAS RETAILED AT 169 IN THE PAST BUT THE COMPANY NOW OFFERS SOME SHOES AS LOW AS 75 BUT MR FRANKEL SAID THE TIMBERLAND BOOT IS STILL A PRODUCT THAT CONSUMERS WANT THE COMPANY SUFFERS FROM AN INABILITY TO MEET DEMAND HE SAID MANAGEMENT STILL HAS PROBLEMS ACCURATELY FORECASTING THE BUSINESS AND DELIVERING THE PRODUCTS ON TIME FOR 1993 TIMBERLAND REPORTED A 74 INCREASE IN NET TO 225 MILLION OR 201 A SHARE ON A 44 SALES INCREASE TO 4189 MILLION FOR 1992 THE CONCERN HAD NET OF 129 MILLION OR 118 A SHARE ON SALES OF 2914 MILLION 9402140159 940214 WHO'S NEWS INTERNATIONAL TECHNOLOGY CORP INTERNATIONAL TECHNOLOGY CORP TORRANCE CALIF MURRAY H HUTCHISON 55 YEARS OLD WILL RETIRE AS CHAIRMAN EFFECTIVE APRIL 1 OF THIS PROVIDER OF ENVIRONMENTALMANAGEMENT SERVICES NO REPLACEMENT WAS NAMED FOR MR HUTCHISON WHO WILL REMAIN A MEMBER OF THE BOARD 9402140158 940214 MARKETING COMPETITIVE FLORALDELIVERY NETWORKS CLAIM A ROSE ISN'T A ROSE ISN'T A ROSE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT THE WAR OF THE ROSES OR BETTER STILL THE WAR TO DELIVER THE ROSES FAST THE ONCEGENTEEL BUSINESS OF FLORAL DELIVERY IS BEING SHAKEN UP BY AGGRESSIVE MARKETERS CATERING TO AMERICANS' GROWING DEMAND FOR CONVENIENCE EVEN WHEN IT COMES TO EXPRESSING FEELINGS OF THE HEART THE COMBATANTS HAVE RUN CONTROVERSIAL ADS PROMISING GREATER CUSTOMER SATISFACTION AND MORE FOR THE MONEY THAN TRADITIONAL FLOWERSBYWIRE SERVICES THE MARKETING IS ESPECIALLY INTENSE FOR VALENTINE'S DAY WHEN FLORISTS WORK AROUND THE CLOCK ARRANGING AND DELIVERING CLOSE TO 300 MILLION FLOWERS AMERICANS WHO THIS YEAR WILL SPEND ABOUT 15 BILLION SENDING FLOWERS APPARENTLY ARE BUYING THE NEW PITCHES INSTEAD OF RELYING ONLY ON LOCAL FLORISTS OR FLOWERSBYWIRE SERVICES MORE PEOPLE ARE USING 800 NUMBERS FLORAL CATALOGS THAT PROMISE OVERNIGHT DELIVERY AND EVEN PERSONALCOMPUTERBASED ORDERING SERVICES CALLING A SINGLE 800 NUMBER TO ORDER FLOWERS CAN BE CONVENIENT BUT SOME PEOPLE WANT TO SEE WHAT THEY ARE PAYING FOR SHOPPERS USING THE CALYX & COROLLA CATALOG OR THE COMPUTER ONLINE PCFLOWERS SERVICE CAN SEE COLOR PHOTOGRAPHS OR FOURCOLOR COMPUTERGENERATED DRAWINGS OF WHAT THEY PAY FOR INSTEAD OF RELYING SOLELY ON THE IMAGINATION OF SOME FAROFF FLORIST SENDING FLOWERS WAS ONCE A STRAIGHTFORWARD BUSINESS AND FLORISTS' TRANSWORLD DELIVERY ASSOCIATION THE LARGEST WIRETRANSFER SERVICE DOMINATED IT TRADITIONALLY A CALLER PLACED AN ORDER WITH A LOCAL FLORIST MORE THAN LIKELY AN FTDAFFILIATED SHOP THE FLORIST THEN SENT THE ORDER THROUGH THE FTD MERCURY PHONE NETWORK OR ANOTHER FLORALTRANSFER SERVICE TO THE SHOP THAT WOULD MAKE IT UP AND DELIVER IT BUT FTD'S HOLD ON THE MARKET IS SLIPPING IN THE FISCAL YEAR ENDED JUNE 30 1992 FTDMEMBER FLORISTS DELIVERED MORE THAN 195 MILLION FTD FLOWERSBYWIRE ORDERS GENERATING SALES OF MORE THAN 676 MILLION BUT IN THE CURRENT FISCAL YEAR FTD WIRE ORDERS ARE EXPECTED TO SLIP TO ABOUT 18 MILLION AND SALES TO ABOUT 650 MILLION FTD IS UP AGAINST COMPETITORS LIKE THREEYEAROLD FLOWERS DIRECT BASED IN BOCA RATON FLA WHICH LAST YEAR WENT FOR THE JUGULAR IN A TV AD CAMPAIGN USUALLY WHEN YOU SEND FLOWERS OUT OF TOWN YOU GIVE YOUR ORDER TO SOMEBODY WHO TAKES A CUT THEN HE PASSES THE ORDER TO SOMEBODY ELSE WHO TAKES A CUT ALL WE CUT IS THE MIDDLEMAN THE VOICEOVER SAID THE FTD COMPLAINED TO THE NATIONAL ADVERTISING DIVISION OF THE COUNCIL OF BETTER BUSINESS BUREAUS THAT THE FLOWERS DIRECT ADS WERE MISLEADING IN SUGGESTING THAT FLOWERS DIRECT TAKES NO CUTS FLOWERS DIRECT SAYS IT IS THE FIRST NATIONAL SERVICE TO CONNECT CALLERS DIRECTLY TO FLORISTS WHO FILL THEIR ORDER CALLERS TO ITS 800 NUMBER PUNCH IN THE ZIP CODE TO WHICH THEY ARE SENDING FLOWERS AND THE CALL IS ROUTED TO A SELECTED FLORIST IN THAT AREA IN FACT FLOWERS DIRECT TAKES ITS CUT IN THE FORM OF A FEE AND PHONE CHARGES TOTALING ABOUT 8 PER ORDER PAID BY THE LOCAL FLORIST THE FLOWERS DIRECT CAMPAIGN ALSO CLAIMED THAT ITS CUSTOMERS WOULD GET A LOT MORE FLOWERS FOR YOUR MONEY AS TO THAT THE NATIONAL ADVERTISING REVIEW BOARD FOUND THAT UNLESS A SURVEY WAS DONE OF A VALID SAMPLE OF FLORISTS FILLING ORDERS UNDER THE DIFFERENT DELIVERY SERVICES IT IS IMPOSSIBLE TO SAY WHETHER ONE MECHANISM DELIVERS MORE FOR THE MONEY OR THAT ONE APPROACH IS CHEAPER THAN ANOTHER FLOWERS DIRECT DISCONTINUED THAT CAMPAIGN ITS MOST RECENT TV AD CAMPAIGN READY FOR VALENTINE'S DAY TAKES A SHOT AT SERVICES LIKE 800FLOWERS AND FTD WHOSE ORDERS ARE FILLED BY FLORISTS THAT CALLERS NEVER TALK TO DIRECTLY SENDING FLOWERS ACROSS TOWN OR ACROSS COUNTRY CAN GET A LITTLE TRICKY SAY YOU WANT TO SEND SOMETHING SPECIAL THE AD SAYS AS A VASE OF ROSES DISAPPEARS IN A PUFF OF SMOKE AND IS REPLACED BY A MUNDANE MUG FILLED WITH CARNATIONS AND BABY'S BREATH SHE COULD END UP WITH SOMETHING A LITTLE MORE ORDINARY THE TV SPOTS SAY FLOWERS DIRECT SAYS ITS SALES AND CALL VOLUME IN 1993 GREW ABOUT 60 FROM THE YEAR BEFORE TO ABOUT 3 MILLION IN SALES AND 700000 CALLS THE COMPANY EXPECTS BIG GROWTH AGAIN THIS YEAR IN BOTH CALL VOLUME AND REVENUES BUT FLOWERS DIRECT IS STILL PUNY COMPARED WITH 800FLOWERS THE 800 PHONE SERVICE KNOWN BEST BY ITS STUBBLEBEARDED OWNER JIM MCCANN WHO APPEARS OFTEN IN TV ADS 800FLOWERS OWNED BY MR MCCANN'S TELEWAY INC WAS A DALLAS TEXAS BUSINESS LOSING MORE THAN 400000 A MONTH WHEN HE BOUGHT IT IN 1987 THIS YEAR 800FLOWERS NOW BASED IN WESTBURY NY AND ITS VARIOUS SISTER BUSINESSES SUCH AS 800BASKET AND 800GOODIES WILL HAVE SALES OF MORE THAN 100 MILLION THE COMPANY HAS GROWN BY ADVERTISING TO THE PRIME FLOWERBUYING GROUP WHITECOLLAR MEN BETWEEN 25 AND 45 MR MCCANN'S GREATEST ASSET IS THE SERVICE'S IMPOSSIBLETOFORGET NAME NOW CONSIDERED THE LEADING 800 FLORAL SERVICE MR MCCANN IS EXPANDING INTO RETAIL OUTLETS LAST YEAR TELEWAY ACQUIRED THE SAN ANTONIOBASED FLOWERS TO GO CHAIN WHICH IN A TEST WILL SOON CHANGE ITS STORES' NAMES TO 800FLOWERS AND BECAME A MAJOR INVESTOR IN CONROY FLOWERS INC THE WEST COAST'S LARGEST RETAIL FLOWER CHAIN FTD IS FIGHTING BACK THE NONPROFIT ASSOCIATION BASED IN SOUTHFIELD MICH BELATEDLY STARTED A FORPROFIT COMPANY LAST YEAR THAT LAUNCHED ITS OWN NUMBER 800SENDFTD BUT THE FTD UNIT CALLED DIRECT ACCESS RECEIVED ONLY 27000 CALLS AND REPORTED A LOSS OF ABOUT 5 MILLION IN ITS FIRST YEAR WHICH ENDED LAST MONTH FTD SAYS IT EXPECTED LOSSES IN AT LEAST THE FIRST THREE YEARS FOR THIS VALENTINE'S DAY FTD'S TV SPOTS INCLUDE ANOTHER NEW SERVICE CALLED THE FLORIST FINDER WHICH HELPS CUSTOMERS LOCATE A LOCAL FTD FLORIST THROUGH A SINGLE CALL TO AN 800 NUMBER 9402140157 940214 TECHNOLOGY GENENTECH'S NEW SCIENCE CENTER SOUTH SAN FRANCISCO CALIF GENENTECH INC BEGAN CONSTRUCTION OF A 58 MILLION SCIENCE CENTER HERE THE COMPANY SAID THE THREESTORY CENTER WILL HOUSE 170 OF THE COMPANY'S 2500 EMPLOYEES 9402140156 940214 WHO'S NEWS PRECISION CASTPARTS CORP PRECISION CASTPARTS CORP PORTLAND ORE STEVEN ROTHMEIER WAS NAMED A DIRECTOR OF THIS MAKER OF AEROSPACE COMPONENTS EXPANDING THE BOARD'S SIZE TO 10 MEMBERS MR ROTHMEIER 48 YEARS OLD IS CHAIRMAN OF PRIVATELY HELD GREAT NORTHERN CAPITAL 9402140155 940214 CANADIAN BUDGET IS DUE FEB 22 OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT WHICH TOOK OFFICE IN NOVEMBER SAID THAT ON FEB 22 IT WILL INTRODUCE ITS FIRST BUDGET THE BUDGET WILL INCLUDE SPENDING AND REVENUE PROJECTIONS FOR THE FISCAL YEAR STARTING APRIL 1 THE GOVERNMENT SAID THE BUDGET MAY ALSO INCLUDE TAX CHANGES THAT WOULD TAKE EFFECT IMMEDIATELY SUBJECT TO EVENTUAL APPROVAL BY PARLIAMENT 9402140154 940214 SEGA GAINS NINTENDO SLIPS IN SEGMENT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AIDED BY STRONG MARKETING AND EXPANDED DISTRIBUTION SEGA OF AMERICA INC CAPTURED NEARLY TWOTHIRDS OF THE MOST CRUCIAL SEGMENT OF THE US MARKET FOR VIDEOGAME PLAYERS DURING THE CHRISTMAS SEASON AS THE SHARE OF ONCEDOMINANT NINTENDO OF AMERICA INC ACCELERATED ITS SLIDE A STUDY BY NPD GROUP INC'S TOY RETAIL SALES TRACKING SERVICE SHOWED THAT THE BIG CHRISTMAS GAIN FOR SEGA BOOSTED THE REDWOOD CITY CALIF COMPANY TO A 57 SHARE OF 16BIT GAMEPLAYER SALES LAST YEAR COMPARED WITH A 43 SHARE FOR REDMOND WASHBASED NINTENDO THE COMPANIES ARE UNITS OF JAPAN'S SEGA ENTERPRISES LTD AND NINTENDO CO RESPECTIVELY IN BOTH NOVEMBER AND DECEMBER THE RESEARCH FIRM FOUND SEGA EARNED A 63 SHARE OF THE 16BIT GAMEPLAYER MARKET COMPARED WITH 37 FOR NINTENDO THE NUMBERS RELEASED BY SEGA AND CONFIRMED BY NPD OFFICIALS WHO COLLECTED SAMPLE DATA FROM MAJOR RETAILERS SEEM TO VALIDATE SEGA'S CLAIMS THAT IT IS ON THE VERGE OF WRESTING CONTROL OF AMERICA'S OVERALL 6 BILLION VIDEOGAME INDUSTRY FROM NINTENDO WHICH AS RECENTLY AS THREE YEARS AGO HELD A VIRTUAL MONOPOLY OVER THE MARKET CLEARLY SEGA HAS MADE SOME VERY BIG STRIDES COMING OUT OF 1993 AND NINTENDO HAS STRUGGLED SAID BILL LUCAS PRESIDENT OF THE SYNDICATEDSERVICES DIVISION FOR NPD A PORT WASHINGTON NY MARKETRESEARCH FIRM WHETHER THE TREND WILL CONTINUE IS ANYONE'S GUESS NPD DIDN'T GIVE A DOLLAR ESTIMATE FOR TOTAL SALES BUT MR LUCAS SAID NINTENDO APPEARED TO HAVE LED SEGA SOMEWHAT IN OVERALL US SALES BY VIRTUE OF ITS LEAD IN SALES OF HANDHELD PLAYERS AND THAT IT MAINTAINED VIRTUALLY SOLE CONTROL OF THE DIMINISHING MARKET FOR OLD EIGHTBIT GAME PLAYERS IN WHICH SEGA DOESN'T COMPETE BUT NINTENDO MAY BE IN DANGER OF LOSING EVEN ITS OVERALLSALES EDGE TO SEGA THE RESEARCH FIRM OF GERARD KLAUER MATTISON & CO RECENTLY ESTIMATED NINTENDO'S 1993 US SALES WOULD SLIGHTLY EXCEED 3 BILLION WITH SEGA AT ABOUT 25 BILLION FOR THIS YEAR GERARD KLAUER PREDICTED SEGA WOULD SURGE TO MORE THAN 3 BILLION IN SALES AND NINTENDO WOULD SLIP BELOW 3 BILLION NINTENDO IS STILL A POWERHOUSE BUT SEGA HAS ENCROACHED ON THEIR TERRITORY SAID STEVE ESKENAZI PRINCIPAL IN ALEX BROWN & SONS IN SAN FRANCISCO NINTENDO HAS LOST GROUND ANALYSTS SAY BECAUSE IT REACTED TOO SLOWLY WHEN SEGA CAME OUT WITH ITS MORE POWERFUL 16BIT GENESIS PLAYER TO COMPETE AGAINST THE EIGHTBIT NINTENDO ENTERTAINMENT SYSTEM ABOUT THREE YEARS AGO BY THE TIME NINTENDO GOT ITS 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM TO MARKET ABOUT 18 MONTHS LATER GENESIS SALES ALREADY WERE SNOWBALLING NINTENDO STILL MANAGED TO EDGE OUT GENESIS SALES BECAUSE IT DISTRIBUTED IN MORE RETAIL STORES HOWEVER ANALYSTS SAY THE DISTRIBUTION ADVANTAGE ALL BUT DISAPPEARED LAST JULY WHEN KMART AND WALMART AGREED TO CARRY SEGA PRODUCTS MR ESKENAZI SAID SEGA SALES ALSO BEGAN TO SOAR AFTER IT EXECUTED A SLICK ADVERTISING CAMPAIGN AIMED AT TEENAGERS AND YOUNG ADULTS THEY SEEM TO BE RIGHT NOW THE HIPPER COOLER SYSTEM HE SAID TOM KALINSKE SEGA OF AMERICA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AGREED THAT MARKETING WAS IMPORTANT SAYING WE ARE OBVIOUSLY PRETTY AGGRESSIVE MARKETEERS AND WE HAVE DONE A BETTER JOB OF PROMOTING OUR PRODUCTS THAN THE COMPETITION NINTENDO OFFICIALS WERE NOT IMMEDIATELY AVAILABLE FOR COMMENT BUT THEY HAVE CONCEDED IN RECENT INTERVIEWS THAT THE COMPETITION IN THE 16BIT MARKET HAS BEEN TOUGH THEY ALSO HAVE ATTRIBUTED SEGA'S SALES GAINS TO THAT COMPANY'S WILLINGNESS TO MARKET MORE VIOLENTLY EXPLICIT GAMES ON GENESIS SUCH AS THE UNCENSORED VERSION OF ACCLAIM ENTERTAINMENT INC'S MORTAL KOMBAT NINTENDO HOPING TO APPEASE PARENTS RELEASED A NONVIOLENT VERSION OF THAT GAME BUT ANALYSTS SAY THE SEGA VERSION FAR OUTSOLD NINTENDO'S NINTENDO IS BANKING HEAVILY ON A TURNAROUND WITH ITS POWERFULLY UPGRADED NEW 64BIT SYSTEM CODENAMED PROJECT REALITY THAT IS BEING DEVELOPED WITH TECHNOLOGY FROM SILICON GRAPHICS INC MOUNTAINVIEW CALIF PROJECT REALITY IS TO REACH ARCADES THIS FALL WITH WORLDWIDE LAUNCH TO HOMES NEXT YEAR SEGA WILL MEET THIS OFFENSIVE WITH A MACHINE CALLED SATURN WHICH IS BEING DEVELOPED WITH HITACHI LTD AND YAMAHA CORP AND ACCORDING TO SEGA OFFICIALS WILL BE POWERED BY MORE THAN ONE 32BIT MICROPROCESSOR SATURN IS TO BE INTRODUCED IN JAPAN THIS FALL WITH ANALYSTS EXPECTING US DISTRIBUTION WITHIN SIX MONTHS THEREAFTER 9402140153 940214 WHO'S NEWS CONSOLIDATED FREIGHTWAYS INC CONSOLIDATED FREIGHTWAYS INC PALO ALTO CALIF ROBERT WAYMAN WAS NAMED A DIRECTOR OF THIS TRANSPORTATION CONCERN INCREASING THE BOARD'S SIZE TO 13 MEMBERS MR WAYMAN 48 YEARS OLD IS CHIEF FINANCIAL OFFICER OF HEWLETTPACKARD CO 9402140152 940214 AMERICAN AIR SMOKING BAN FORT WORTH TEXASAMERICAN AIRLINES WILL LAUNCH ITS FIRST NONSMOKING TRANSATLANTIC FLIGHT MAY 1 OTHER US CARRIERS HAVE RECENTLY ANNOUNCED SMOKING BANS IN FIRSTCLASS CABINS ON INTERNATIONAL FLIGHTS BUT AMERICAN A UNIT OF AMR CORP APPEARS TO BE THE FIRST DOMESTIC CARRIER TO BANISH CIGARETTES COMPLETELY ON AN INTERNATIONAL FLIGHT THE POLICY WILL TAKE EFFECT ON AMERICAN'S NEW YORKTOLONDON SERVICE 9402140151 940214 WHO'S NEWS GFC FINANCIAL CORP GFC FINANCIAL CORP PHOENIX SHOSHANA B TANCER WAS ELECTED A DIRECTOR OF THIS COMMERCIAL FINANCIALSERVICES CONCERN MS TANCER 58 YEARS OLD IS A PROFESSOR OF INTERNATIONAL STUDIES AT THE AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT GLENDALE ARIZ SHE FILLS A VACANCY LEFT BY THE RESIGNATION OF PHILIP S PELANEK 50 LAST YEAR 9402140150 940214 WESTERN CO OF NORTH AMERICA HOUSTON WESTERN CO OF NORTH AMERICA SAID IT COMPLETED THE PURCHASE OF A UNIT OF SIMON ENGINEERING PLC OF BRITAIN FOR 20 MILLION WESTERN CO AN OILFIELD SERVICE COMPANY SAID ITS ACQUISITION OF UNICHEM INTERNATIONAL INC WAS RETROACTIVE TO JAN 1 UNICHEM BASED IN THE WOODLANDS TEXAS PROVIDES SPECIALTY CHEMICALS TO THE OIL AND PETROCHEMICAL INDUSTRIES 9402140149 940214 SHL SYSTEMHOUSE ACQUISITION OTTAWA SHL SYSTEMHOUSE INC SAID IT COMPLETED THE ACQUISITION OF THE ASSETS AND BUSINESS OF NETG TRAINING GROUP LTD TORONTO TERMS WEREN'T DISCLOSED SHL ALSO SAID IT SIGNED A LONGTERM DISTRIBUTION AGREEMENT FOR CANADA WITH NATIONAL EDUCATION TRAINING GROUP INC NETG PROVIDES MEDIABASED EDUCATION MATERIALS TO CORPORATE INDUSTRIAL AND GOVERNMENT CUSTOMERS 9402140148 940214 TECHNOLOGY AS BABY BELLS CLAIM NEW RIVALS SEEK LOOSER RULES STUDY SUGGESTS OPPOSITE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE BABY BELLS PUSHING FOR LOOSER REGULATION BY CLAIMING THAT COMPETITION IN THE LOCAL TELEPHONE MARKET IS INTENSIFYING A NEW REPORT SUGGESTS THAT JUST THE OPPOSITE IS TRUE A DECADE AFTER THE BREAKUP OF THE OLD BELL SYSTEM THE SEVEN REGIONAL TELEPHONE COMPANIES STILL HANDLE MORE THAN 95 OF TELEPHONE CALLS IN THE US AND THEIR LOCAL MONOPOLIES WILL LIKELY AVOID A SERIOUS CHALLENGE FOR AT LEAST ANOTHER DECADE THE STUDY ASSERTS THE REPORT WAS SPONSORED BY AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP AND A LONGDISTANCE INDUSTRY TRADE GROUP IT IS SLATED FOR RELEASE THIS WEEK IT WILL SERVE AS AMMUNITION IN THEIR BATTLE TO BLUNT THE BELLS' EFFORT TO GAIN ENTRY INTO THE 60 BILLION LONGDISTANCE BUSINESS THE BABY BELLS WHICH WERE GRANTED MONOPOLY POWER OVER THEIR RESPECTIVE SERVICE REGIONS WHEN THEY WERE SPUN OFF IN THE BREAKUP OF AT&T A DECADE AGO WERE BANNED FROM LONGDISTANCE AND EQUIPMENT MANUFACTURING NOW THEY CONTEND THEY DESERVE ENTRY BECAUSE CONDITIONS HAVE CHANGED COMPETITION IS A REALITY PHIL QUIGLEY PRESIDENT OF PACIFIC BELL PROCLAIMED IN A PRESS RELEASE LAST WEEK BUT THE REPORT SHOWS THAT DESPITE TRYING FOR THE PAST DECADE NEW RIVALS HAVE MADE SCANT INROADS INTO THE BABY BELLS' TURF INDEED THE COMBINED REVENUES OF BELL RIVALS IN THE LUCRATIVE MARKET FOR ACCESS TO DEDICATED LINES AMOUNT TO LESS THAN 1 OF THE BABY BELLS' TAKE THE REPORT STATES THE SEVEN BELLS GENERATE ABOUT 26 BILLION A YEAR IN SOCALLED ACCESS FEES FOR CONNECTING CUSTOMERS TO LONGDISTANCE CALLS GIVING THEM A 992 SHARE OF THE MARKET COMPETITORS TAKE IN ABOUT 209 MILLION ANNUALLY FOR A 08 STAKE EVEN IF CABLE SYSTEMS THE BELL COMPANIES' MUCHCITED NEW THREAT WERE TO BEGIN SELLING LOCAL TELEPHONE SERVICES FULLY 99 OF ALL CALLS WOULD HAVE TO GO OVER THE BABY BELL NETWORK THE REPORT STATES THE ONLY CALLS THAT COULD BYPASS BELL LINES WOULD BE THOSE MADE BY ONE CABLE SUBSCRIBER TO ANOTHER ON THE SAME SYSTEM THE 300PAGE STUDY WAS PUT TOGETHER BY ECONOMICS AND TECHNOLOGY INC A RESEARCH GROUP IN BOSTON AND HATFIELD ASSOCIATES INC A CONSULTING FIRM IN DENVER 9402140147 940214 ECONOMY CONSUMER SPENDING SLIPPED IN JANUARY BUT MANY ANALYSTS BLAME BAD WEATHER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MAYBE IT'S JUST COLD WEATHER THAT'S FROZEN CONSUMER SPENDING AND PUT A SLIGHT CHILL ON THE MOODS OF AMERICANS AFTER NINE MONTHS OF SOLID GAINS CONSUMER SPENDING FELL 05 IN JANUARY TO 18096 BILLION THE COMMERCE DEPARTMENT SAID JANUARY WAS ALSO ONE OF THE COLDEST ON RECORD AND MANY ANALYSTS POINT TO THAT AS THE MAIN REASON SPENDING DECLINED CONSUMER CONFIDENCE ALSO SEEMS TO HAVE DIPPED ALONG WITH THE TEMPERATURE THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX FELL TO 929 IN EARLY FEBRUARY FROM 943 IN JANUARY THE SMALL DECLINE COMES AFTER A STRING OF INCREASES MATCHED BY RISES IN THE CONFERENCE BOARD'S CONSUMER CONFIDENCE MEASURE SEPARATELY THE LABOR DEPARTMENT SAID PRODUCER PRICES OF FINISHED GOODS CLIMBED A MODEST 02 IN JANUARY AFTER FALLING 01 IN DECEMBER THERE IS SOME UNCERTAINTY ABOUT THE BAD WEATHER THEORY CONCERNING SALES HOWEVER IN THE LAST QUARTER OF 1993 THE ECONOMY GREW AT A FAST 59 ANNUAL RATE AN UNSUSTAINABLE CLIP BY MOST ACCOUNTS THE CONSENSUS IS THAT GROWTH WILL SLOW IN THE FIRST PART OF THIS YEAR WHICH IT HAS SO FAR ALONG WITH FALLING RETAIL SALES JOBS GREW BY ONLY 62000 LAST MONTH AFTER AVERAGING CLOSE TO 200000 IN THE PREVIOUS FIVE MONTHS IT IS DIFFICULT TO SEPARATE HOW MUCH OF THIS SLOWDOWN IS A WEATHER THING AND HOW MUCH IS AN UNSUSTAINABILITY THING IT'S HARD TO TELL FOR SURE SAID LAURA TYSON HEAD OF THE PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS ONE BRIGHT SPOT IS THAT THE MANUFACTURING SECTOR SEEMS UNSCATHED BY THE FRIGID TEMPERATURES A SURVEY OF PURCHASING MANAGERS SUGGESTED THAT MANUFACTURING ACTIVITY EXPANDED IN JANUARY AND DESPITE SMALL JOB GAINS OVERALL LAST MONTH FACTORY JOBS GREW AT A RESPECTABLE PACE ANALYSTS SAY THAT'S A SURE SIGN THE ECONOMY HASN'T LOST ITS FOOTING THE WEATHER AND THE CALIFORNIA EARTHQUAKE WILL DEPRESS FIRSTQUARTER ECONOMIC GROWTH THOUGH IT IS BEGINNING TO LOOK LIKE WE WILL NOT MAKE THIS GROWTH UP BECAUSE TIME IS RUNNING OUT SAID MS TYSON AS SNOW AND FREEZING RAIN CONTINUED TO FALL IN THE NATION'S CAPITAL FRIDAY CJ LAWRENCE CHIEF ECONOMIST ED YARDENI SAYS THAT IF BAD WEATHER PERSISTS CONSUMPTION COULD ACTUALLY DECLINE IN THE FIRST QUARTER MUCH OF THE DROP IN RETAIL SALES LAST MONTH CAME IN AREAS WHERE WEATHER CAN PLAY A BIG PART BUILDING MATERIALS HARDWARE AUTOS AND FURNITURE WERE HARDEST HIT GASOLINE SALES AND DRUGSTORE SALES POSTED THE LARGEST GAINS ANALYSTS POINTED OUT THAT THE RECENT UPWARD REVISIONS IN RETAIL SALES GROWTH TO 12 IN DECEMBER AND 07 IN NOVEMBER SUGGEST UNDERLYING CONSUMER STRENGTH JOSEPH LIRO CHIEF ECONOMIST OF SG WARBURG IN NEW YORK SAID AT LEAST SOME OF THE SALES LOST IN JANUARY SHOULD BE RECAPTURED IN FEBRUARY AND MARCH WHOLESALE PRICES IN JANUARY WERE MODERATE BUT THE 02 RISE WAS STILL THE FASTEST PACE SINCE SEPTEMBER EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS WHOLESALE PRICES ROSE A STRONGER 04 THE FASTEST CLIP IN A YEAR MUCH OF THE RISE WAS CONCENTRATED IN COMPUTERS AND TOBACCO IN RECENT YEARS INFLATION HAS TENDED TO BLIP UP AT THE START OF THE YEAR ONLY TO LEVEL OFF LATER ON THE LABOR DEPARTMENT HAS MADE AN EFFORT TO SMOOTH AWAY THAT STATISTICAL PROBLEM THIS YEAR BUT STEPHEN ROACH SENIOR ECONOMIST AT MORGAN STANLEY SAID THE LARGE RISE RELATIVE TO RECENT MONTHS IN PRODUCER PRICES MINUS FOOD AND ENERGY SUGGESTS THE PROCESS HASN'T COMPLETELY WORKED PRICES OF INTERMEDIATE GOODS ROSE 02 AFTER FALLING IN DECEMBER CRUDE PRICES JUMPED 13 AFTER FALLING 24 THE MONTH BEFORE PRIVATE ECONOMISTS AND THE ADMINISTRATION BELIEVE PRICES WILL REMAIN WELLBEHAVED THIS YEAR EVEN AS THE ECONOMY BECOMES MORE HEALTHY THE CONSUMER PRICE INDEX IS SCHEDULED TO BE RELEASED THURSDAY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR JANUARY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM JANUARY 1993 9402140146 940214 IRS AUDITS OF MUNI BONDS MAY INCLUDE REVIEW OF UNDERWRITERS' LAWYERS' BOOKS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE'S AUDITS OF HUNDREDS OF MUNICIPAL BOND ISSUES MAY INCLUDE REVIEWS OF THE RELEVANT BOOKS AND RECORDS OF UNDERWRITERS AND BOND LAWYERS THE AUDIT TRAIL MAY LEAD TO THESE PLACES SAID MARCUS OWENS A SENIOR IRS OFFICIAL INVOLVED IN PLANNING THE MUNI AUDITS HE NOTED THAT BOND ISSUANCE COSTS CHIEFLY FEES PAID TO UNDERWRITERS AND LAWYERS ARE LIMITED BY LAW ON SOME TYPES OF MUNICIPAL BOND ISSUES THE IRS PLANS TO CONDUCT A HOST OF MUNICIPAL BOND AUDITS TO GET A STATISTICALLY VALID INDICATION OF THE STATE OF COMPLIANCE WITH TAX RULES GOVERNING MUNIS THE IRS EXPECTS AS MANY AS 200 RANDOMLY SELECTED AUDITS IN SEVERAL DIFFERENT CATEGORIES OF BONDS THESE AUDITS AREN'T EXPECTED TO START UNTIL NEXT FISCAL YEAR THE IRS MUNI AUDITS IN SOME CASES ALSO ARE EXPECTED TO INCLUDE A REVIEW OF HOW BOND PROCEEDS ARE USED THIS IS ONE OF THE AREAS WHERE OUR CONCERNS AND THOSE OF THE SECURITIES AND EXCHANGE COMMISSION ARE LIKELY TO OVERLAP MR OWENS SAID IN AN INTERVIEW THE IRS AND SEC HAVE BEGUN TO COORDINATE THEIR MUNICIPAL BOND ENFORCEMENT EFFORTS SEC CHAIRMAN ARTHUR LEVITT RECENTLY PLEDGED TO ENFORCE THE SECURITIES LAWS VIGOROUSLY WITH RESPECT TO MUNIS AND CITED AMONG THE AREAS IN THE SEC'S SIGHTS ALLEGATIONS ABOUT OFFERINGS THAT LACK ECONOMIC MERIT OR THAT MISREPRESENT THE TAX STATUS OF THE BONDS SUCH ALLEGATIONS ALSO ARE OF INTEREST TO THE IRS SOME MARKET PARTICIPANTS FEAR THAT IF THE IRS FINDS THAT A SIGNIFICANT AMOUNT OF BOND PROCEEDS ARE UNACCOUNTED FOR OR WEREN'T USED FOR THEIR INTENDED PURPOSES IT COULD CREATE PROBLEMS FOR OTHER MUNI BONDS THE IRS ALSO WILL BE LOOKING AT A BATCH OF SPECIFIC BOND ISSUES THAT HAVE BEEN IDENTIFIED AS HAVING POSSIBLE TAX PROBLEMS MR OWENS SAID THESE CASES APPEAR TO INVOLVE BONDS WHERE PEOPLE GOT A LITTLE TOO CLEVER FOR THEIR OWN GOOD AND WHERE PERTINENT REGULATIONS TYPICALLY RULES BARRING ARBITRAGE MAY HAVE BEEN TOO COMPLEX FOR BOND ISSUERS TO COMPREHEND ARBITRAGE IS INVOLVED WHEN BOND PROCEEDS ARE INVESTED IN HIGHERYIELDING INSTRUMENTS AND HAS BEEN A LEADING IRS CONCERN OVER THE YEARS EVEN AFTER THE 1986 TAX REFORM ACT REQUIRED THAT ARBITRAGE PROFITS BE REBATED TO THE TREASURY TO DATE MORE THAN 800 MILLION IN ARBITRAGE HAS BEEN PAID OVER TO THE FEDERAL GOVERNMENT BY MUNICIPAL BOND ISSUERS 9402140144 940214 CHAUS ATTRIBUTES LOSS IN FISCAL 2ND QUARTER TO SLOW APPAREL SALES NEW YORK APPAREL MAKER BERNARD CHAUS INC REPORTED A 85 MILLION LOSS OR 46 CENTS A SHARE FOR THE FISCAL SECOND QUARTER WHICH IT ATTRIBUTED TO SLUGGISH SALES AND PRICING PRESSURE JOSEPHINE CHAUS CHAIRWOMAN AND CHIEF EXECUTIVE SAID APPAREL DID NOT PARTICIPATE MATERIALLY IN THE OVERALL INCREASE IN SALES REPORTED BY RETAILERS IN THE QUARTER A YEAR EARLIER THE COMPANY HAD NET INCOME OF 126000 OR ONE CENT A SHARE SHE SAID THE COMPANY'S EFFORTS TO REDUCE INVENTORY INCREASED THE PROPORTION OF SALES MADE BELOW STANDARD SELLING PRICES HOWEVER THE PRICING STRATEGY DID REDUCE OUR INVENTORY TO LESS THAN THE SAME QUARTER LAST YEAR AND THEREBY LESSEN THE POTENTIAL IMPACT ON FUTURE QUARTERS SALES FOR THE QUARTER ENDED DEC 31 FELL 18 TO 507 MILLION FROM 616 MILLION FOR THE SIX MONTHS THE COMPANY HAD A NET LOSS OF 102 MILLION OR 56 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 25 MILLION OR 13 CENTS A SHARE INCLUDING A TAX BENEFIT OF 866000 SALES DECLINED TO 1203 MILLION FROM 1258 MILLION THE COMPANY SAID IT IS MOVING TO FURTHER REDUCE OPERATING EXPENSES REDUCING THE STYLES IN THE LINE MAINTAINING LOWER PRICES REDUCING THE QUANTITY OF MERCHANDISE MANUFACTURERED AND GENERALLY LOWERING THE LEVEL OF BUSINESS REQUIRED TO BREAK EVEN THE COMPANY SAID IT IS NEGOTIATING WITH BANK LENDERS TO MODIFY BORROWING AGREEMENTS AND EXPECTS NEGOTIATIONS WILL BE SUCCESSFUL IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CHAUS SHARES CLOSED UNCHANGED AT 2 A SHARE 9402140143 940214 PEPPERAND SALT WITH INTERCHANGEABLE PARTS IS BOUND TO BE A WHOPPER 9402140141 940214 WHO'S NEWS KODAK SELECTS KAVETAS TO FILL FINANCIAL POST BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO PICKED FORMER INTERNATIONAL BUSINESS MACHINES CORP FINANCIAL EXECUTIVE HARRY L KAVETAS AS ITS CHIEF FINANCIAL OFFICER A POSITION VACANT SINCE LAST APRIL THE APPOINTMENT IS CHAIRMAN GEORGE FISHER'S FIRST MAJOR MANAGEMENT MOVE SINCE HE TOOK OVER THE HELM OF THE TROUBLED PHOTOGRAPHIC AND HEALTH COMPANY IN DECEMBER THE 56YEAROLD MR KAVETAS WHO IS KNOWN AS A STEADY DECISION MAKER LAST SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF IBM'S CREDIT CORP UNIT DURING HIS TENURE THE DIVISION'S PROFIT ROSE TO 220 MILLION FROM 118 MILLION HE RETIRED LATE LAST YEAR AFTER 32 YEARS WITH IBM SOME INVESTORS HAD HOPED KODAK WOULD CHOOSE AN AGGRESSIVE COSTCUTTER TO SHAKE UP THE ROCHESTER NY COMPANY WHICH HAS BEEN BURDENED BY INCREASED COMPETITION AND SLOWER GROWTH IN ITS CORE FILM BUSINESS BUT MR FISHER WANTED A TOTAL CFO NOT JUST A COSTCUTTER SAID TED JADICK MANAGING DIRECTOR OF HEIDRICK & STRUGGLES INC AN EXECUTIVE SEARCH FIRM WHICH HELPED RECRUIT MR KAVETAS HE WANTED A BUSINESS PARTNER ALMOST AND HE WANTED THE CHEMISTRY TO BE RIGHT IT'S EXPECTED THAT MR KAVETAS'S VISION AND OPERATING STYLE WILL FIT CLOSELY WITH THAT OF THE 53YEAROLD MR FISHER THAT WOULD BE A SHARP DEPARTURE FROM THE CLASHING STYLES OF FORMER KODAK CHIEF EXECUTIVE KAY WHITMORE AND CHRISTOPHER J STEFFEN WHO QUIT AS KODAK'S FINANCIAL BOSS AFTER ONLY THREE MONTHS ON THE JOB MR STEFFEN WANTED TO CUT COSTS AND SELL ASSETS FASTER THAN MR WHITMORE DID I'M A DISCIPLINED ANALYTICAL AND ORDERLY PERSON MR KAVETAS SAID FRIDAY AFTER THE BOARD APPROVED HIS APPOINTMENT I WANT TO CREATE AN ENVIRONMENT AT KODAK WHERE THERE IS SOME CONSISTENCY OF PURPOSE WHERE THERE IS NOT THE PROGRAM DU JOUR OR PROGRAM PER QUARTER MR KAVETAS WHO LACKS A BACKGROUND IN KODAK'S TYPE OF MANUFACTURING SAID HIS FINANCIAL SKILLS AND EXPERIENCE AS A BOSS WILL HELP KODAK REALIZE ITS FULL POTENTIAL HE AGREED THAT KODAK NEEDED MORE REVENUE GROWTH THERE ARE ENORMOUS RESOURCES LOCKED UP AT KODAK HE ADDED BOB DJURDJEVIC PRESIDENT OF ANNEX RESEARCH A PHOENIX CONSULTING FIRM SAID MR KAVETAS IS FORCEFUL AND STANDS UP FOR WHAT HE BELIEVES RIGHT OR WRONG ADDED JACK KELLY AN ANALYST WITH GOLDMAN SACHS & CO THE CONSENSUS IS THAT MR KAVETAS IS A SOLID CITIZEN WHAT KODAK REALLY NEEDS IS SOMEONE WITH A SOLID REPUTATION WHO WILL CHANGE THE WAY THE COMPANY IS GOING SEPARATELY KODAK NAMED MICHAEL P MORLEY ITS 50YEAROLD DIRECTOR OF HUMAN RESOURCES AS A SENIOR VICE PRESIDENT ALEX P WASILOV 40 GENERAL MANAGER CONSUMER IMAGING US AND CANADA WAS NAMED A VICE PRESIDENT 9402140140 940214 CRANE AGREES TO BUY ELDEC FOR 74 MILLION STAMFORD CONN CRANE CO AGREED TO ACQUIRE ELDEC CORP A DEFENSE AND AEROSPACE SUBCONTRACTOR FOR ABOUT 74 MILLION UNDER THEIR DEFINITIVE AGREEMENT CRANE AGREED TO PURCHASE ABOUT 51 OF ELDEC FROM CERTAIN SHAREHOLDERS AT 13 A SHARE AND WILL MAKE A TENDER OFFER AT THAT PRICE FOR THE REMAINING SHARES IN NASDAQ STOCK MARKET TRADING ELDEC SHARES FINISHED UP 2625 OR 26 TO 1275 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CRANE FELL 50 CENTS TO 26 IN JANUARY ELDEC HAD SAID IT HAD BEEN APPROACHED BY SEVERAL COMPANIES INTERESTED IN PURCHASING THE LYNNWOOD WASH COMPANY FOR THE NINE MONTHS ENDING DEC 26 ELDEC HAD NET INCOME OF 557000 OR 10 CENTS A SHARE ON SALES OF 733 MILLION ELDEC SAID NET INCOME INCLUDED A 400000 RESERVE AGAINST UNPAID ACCOUNTS RECEIVABLE ELDEC HAS ABOUT 57 MILLION SHARES OUTSTANDING ITS BOARD HAS APPROVED THE OFFER CRANE MAKES A VARIETY OF ENGINEERED INDUSTRIAL PRODUCTS AND HAS A WHOLESALE DISTRIBUTION BUSINESS 9402140139 940214 ENTERPRISE TEAMSTERS JOIN CHURCHWOMEN IN AN UNLIKELY ALLIANCE GROUPS ALLEGE FISH PROCESSOR SEEKS TO SQUEEZE OLDER WORKERS OFF THE LINE BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT MR MUSCLE MEETS CHURCH LADY ALLEGATIONS THAT A SMALL NEW ENGLAND FISH PROCESSOR THINKS PEOPLE IN THEIR MID40S ARE TOO OLD TO WORK EFFICIENTLY HAS CREATED AN UNLIKELY ALLIANCE BETWEEN THE TEAMSTERS UNION AND CHURCH WOMEN UNITED AN ECUMENICAL GROUP OF CHRISTIAN WOMEN ACTIVE IN SOCIAL ISSUES LAST WEEK THE TWO GROUPS ORGANIZED PROTESTS OUTSIDE VARIOUS LONG JOHN SILVER'S RESTAURANTS NATIONWIDE THEY CHARGE THAT FRIONOR USA INC A NEW BEDFORD MASS FISH PROCESSOR AND LONG JOHN SILVER'S SUPPLIER WANTS TO REPLACE OLDER WORKERS MAINLY WOMEN WITH YOUNGER ONES ACCORDING TO THE TEAMSTERS AND CHURCH WOMEN THE VULNERABLE WORKERS COULD BE AS YOUNG AS THEIR MID40S THE GROUPS SAY THE AVERAGE AGE OF FRIONOR'S FEMALE WORKERS WHO MAKE UP ABOUT 75 OF THE COMPANY'S 110 PRODUCTION WORKERS IS ABOUT 45 YEARS OLD THESE REALLY AREN'T OLDER WOMEN SAYS RON CARVER STRATEGIC CAMPAIGN DIRECTOR FOR THE WASHINGTON DC BASED TEAMSTERS BUT THEY'RE CLEARLY BEING DISCRIMINATED AGAINST BASED ON THE COSTLINESS THAT IS ASSOCIATED WITH THEIR EXPERIENCE FRIONOR A SUBSIDIARY OF FRIONOR AS A SMALL NORWEGIAN COMPANY THAT PACKAGES FISH PRODUCTS DISPUTES THE CHARGES THESE ARE USUAL TEAMSTER TACTICS SAYS CHARLES DILLON FRIONOR'S PRESIDENT THERE IS NOTHING IN OUR CONTRACT TALKS THAT EVEN TRIES TO NEGOTIATE DISCRIMINATORY PRACTICES TOWARD OLDER WORKERS BUT THE TEAMSTERS AND CHURCH WOMEN SAY TWO MAIN CHANGES THAT FRIONOR IS SEEKING IN ITS CURRENT LABOR CONTRACT WITH THE TEAMSTERS ARE AIMED AT SQUEEZING OLDER BETTER PAID WORKERS OFF THE PRODUCTION LINE THE FIRST WOULD REQUIRE WORKERS TO UNDERGO STRENGTH AND AGILITY TESTS THAT WOULD GIVE THE COMPANY THE RIGHT TO FORBID SOME WORKERS FROM PERFORMING CERTAIN TASKS ALONG THE PRODUCTION LINE WORK THERE INCLUDES SUCH JOBS AS CUTTING PARTIALLY FRYING PACKAGING AND BOXING FROZEN FISH THE SECOND CHANGE WOULD ALLOW THE COMPANY TO DECIDE WHICH PRODUCTIONLINE TASK EACH WORKER CARRIES OUT IN THE PAST EMPLOYEES HAVE CHOSEN THEIR JOBS AT THE BEGINNING OF EACH WORKDAY BASED ON THEIR OWN PREFERENCES AND ABILITIES MR DILLON SAYS THAT FRIONOR IS WILLING TO DROP THE COMPANY'S REQUESTS FOR AGILITY TESTING IF THE WORKERS ARE WILLING TO CONCEDE ON OTHER POINTS SUCH AS ACCEPTING LOWER WAGES AND HE SAYS THAT FRIONOR NEEDS TO ASSIGN PRODUCTIONLINE TASKS BECAUSE WORKERS HAVE USUALLY CHOSEN THEIR ASSIGNMENTS BASED ON A DESIRE TO CHAT WITH COWORKERS RATHER THAN TO WORK HARD MR DILLON ADDS THAT FRIONOR IS TRYING TO WIN THE RIGHT TO PAY NEW WORKERS 750 AN HOUR 150 LESS AN HOUR THAN THE COMPANY'S CURRENT WORKERS EARN HE SAYS THE TWOTIERED WAGE SCALE IS DESIGNED TO REDUCE LABOR COSTS IN ANTICIPATION OF AUTOMATING THE PRODUCTION LINE IT IS THIS PROSPECT OF REDUCED LABOR COSTS SAY FRIONOR'S CRITICS THAT GIVES THE COMPANY THE INCENTIVE TO GET RID OF OLDER WORKERS WHO ALSO HAVE LONG VACATIONS AND MIGHT RAISE HEALTHCARE COSTS I FIRMLY BELIEVE THAT THEY THINK THEY CAN GET YOUNGER PEOPLE IN THERE WHO CAN DO A BETTER JOB FOR LESS MONEY SAYS MARGARET LYNCH A 49YEAROLD JANITOR WHO JOINED FRIONOR 22 YEARS AGO I HELPED THEM BUILD UP TO WHERE THEY ARE TODAY THEY CAN'T JUST THROW ME OUT THE FATE OF WORKERS SUCH AS MS LYNCH DROVE THE TEAMSTERS TO APPROACH CHURCH WOMEN LAST YEAR AND SUGGEST AN ALLIANCE CHURCH WOMEN AGREED AND ITS DIRECTOR PAT RUMER DECIDED TO WRITE FRIONOR'S CUSTOMERS TO ALERT THEM TO PROBLEMS THAT SHE BELIEVED THE PROCESSING PLANT HAD LAST NOVEMBER MS RUMER WROTE LONG JOHN SILVER'S INC A LEXINGTON KY COMPANY THAT IS AN INTERNATIONAL OPERATOR AND FRANCHISER OF SEAFOOD RESTAURANTS IT IS ALSO FRIONOR'S BIGGEST CUSTOMER HER LETTER ALLEGED THAT FRIONOR WAS TRYING TO LAY OFF SENIOR WORKERS AND FIRE WORKERS WHO ARE SICK OR INJURED SHE ALSO MENTIONED THAT CHURCH WOMEN WAS VERY CONCERNED ABOUT THE CURRENT TREND OF EMPLOYERS TO DUMP' OLDER WORKERS SO THAT YOUNGER LOWERPAID WORKERS MAY BE HIRED ALTHOUGH LONG JOHN SILVER'S NEVER REPLIED TO THE LETTER FRIONOR DID IN JANUARY IT FILED A 4 MILLION LIBEL SUIT AGAINST CHURCH WOMEN IN THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK THE LAWSUIT ALLEGES THAT CHURCH WOMEN DEFAMED FRIONOR BY CRITICIZING ITS STANDING BUSINESS METHODS AND INTEGRITY AND UNFAIRLY CHARGING THE COMPANY WITH EXPLOITATIVE OR IMMORAL CONDUCT IN THE TREATMENT OF ITS WORKERS THE LAWSUIT STUNNED MS RUMER IT SEEMED FRANKLY LIKE AN ACT OF INTIMIDATION SHE SAYS WE ASK PEOPLE ALL THE TIME ABOUT THEIR BUSINESS PRACTICES AND IT'S UNUSUAL FOR US TO GET THIS HOSTILE A RESPONSE NONETHELESS THE LAWSUIT PROMPTED MEMBERS OF CHURCH WOMEN AND THE TEAMSTERS TO PROTEST OUTSIDE SEVERAL LONG JOHN SILVER'S RESTAURANTS NATIONWIDE THURSDAY THEY HANDED OUT PAMPHLETS TO WORKERS AND CUSTOMERS INFORMING THEM OF THE LAWSUIT AND CONDITIONS AT THE FRIONOR PLANT ALTHOUGH LONG JOHN SILVER'S SAYS IT IS NOT TAKING ANY ACTION FRIONOR IS ON FRIDAY IT ISSUED A NEWS RELEASE SAYING IT WAS WITHDRAWING ITS SUIT AGAINST CHURCH WOMEN I REGRET CHURCH WOMEN UNITED WAS DRAWN INTO WHAT BECAME A PUBLIC DISPUTE MR DILLON SAYS IN THE RELEASE FRIONOR REMAINS COMMITTED TO THE BELIEF THAT THROUGH COLLECTIVE BARGAINING WE WILL RESOLVE OUR DIFFERENCES WITH OUR UNION WORKERS 9402140138 940214 FORD RECALLS TRUCKS FOR EXHAUST PROBLEM MERCEDES TO FIX 400ES DETROIT FORD MOTOR CO SAID IT IS RECALLING 31500 1988MODEL RANGER TRUCKS EQUIPPED WITH 20LITER ENGINES BECAUSE OF AN EMISSIONS PROBLEM FORD SAID TESTS CONDUCTED BY IT AND THE ENVIRONMENTAL PROTECTION AGENCY INDICATE THAT SOME VEHICLES MAY EMIT OXIDES OF NITROGEN AT LEVELS THAT EXCEED US AND CANADIAN STANDARDS ABOUT 3800 OF THESE VEHICLES ARE IN CANADA FORD SAID FORD DEALERS WILL MAKE SEVERAL MODIFICATIONS TO THE EMISSIONS SYSTEM INCLUDING REPLACING THE EXHAUST SYSTEM CATALYST AND THE EXHAUST GAS RECIRCULATION VALVE SEPARATELY MERCEDESBENZ OF NORTH AMERICA SAID IT IS RECALLING 5900 400E VEHICLES TO FIX A PROBLEM WITH A COMPONENT INVOLVING THE AIRCONDITIONING UNIT MERCEDESBENZ A UNIT OF GERMANY'S DAIMLERBENZ AG SAID THE PROBLEM INVOLVES ALL 1992 AND SOME 1993MODEL VEHICLES MERCEDESBENZ SAID A FAULTY HOSE IN THE SYSTEM COULD CAUSE A RELEASE OF FUEL VAPOR NEAR THE AUXILIARY COOLING FAN WHICH COULD LEAD TO A FIRE UNDER THE HOOD MERCEDESBENZ SAID THAT THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO THE PROBLEM THE COMPANY URGED OWNERS TO STOP USING THE AIRCONDITIONING SYSTEM UNTIL REPAIRS ARE MADE 9402140137 940214 WHO'S NEWS AMERICAN OIL & GAS CORP AMERICAN OIL & GAS CORP HOUSTON SAMUEL H CHARLTON III WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT GAS MARKETING AND SUPPLY MR CHARLTON 48 YEARS OLD HAD BEEN VICE PRESIDENT GAS MARKETING 9402140136 940214 WHO'S NEWS BARR POTTER TO HEAD LARGO ENTERTAINMENT HOLLYWOOD JVC/VICTOR CO OF JAPAN NAMED BARR B POTTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS LARGO ENTERTAINMENT UNIT THE MOVE COMPLETES A SHIFT IN FOCUS AT LARGO WHICH HAD BEEN PRIMARILY A MOVIEPRODUCTION COMPANY LARGO SAID IT NOW PLANS TO ACQUIRE FINANCE AND DISTRIBUTE MOVIES IN THE INTERNATIONAL MARKET MAJOR CHANGES AT THE COMPANY WERE FORESHADOWED LAST MONTH WHEN 57YEAROLD PRODUCER LARRY GORDON FOR WHOM LARGO IS NAMED RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE MR POTTER 45 INITIALLY JOINED JVC WHICH IS 51 OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL CO AS AN EXECUTIVE VICE PRESIDENT IN 1991 HE BECAME PRESIDENT CHIEF OPERATING OFFICER AND A MEMBER OF THE BOARD OF DIRECTORS IN JULY 1992 9402140135 940214 BUSINESS BRIEF BOATMEN'S BANCSHARES INC TRUST SUBSIDIARY TO ACQUIRE GUINNESS INVESTMENT UNIT BOATMEN'S BANCSHARES INC ST LOUIS SAID ITS BOATMEN'S TRUST UNIT AGREED IN PRINCIPLE TO ACQUIRE EAGLE MANAGEMENT & TRUST CO A HOUSTONBASED INVESTMENT ADVISORY FIRM CURRENTLY OWNED BY LONDONBASED GUINNESS PEAT GROUP PLC TERMS WEREN'T DISCLOSED BOATMEN'S A BANK HOLDING COMPANY SAID EAGLE FOCUSES ON QUALIFIED RETIREMENT PLANS AND ENDOWMENTS FOR PENSION AND INSTITUTIONAL CLIENTS THE TEXAS COMPANY HAS ABOUT 14 BILLION IN ASSETS UNDER MANAGEMENT BOATMEN'S TRUST WHICH HAS ABOUT 34 BILLION IN ASSETS UNDER MANAGEMENT SAID THE ACQUISITION IS AIMED AT BOOSTING ITS PRESENCE IN TEXAS AND WILL ENHANCE ITS EFFORTS TO EXPLORE OPPORTUNITIES IN MEXICO AND LATIN AMERICA 9402140134 940214 TENNECO UNIT SELLS STAKE HOUSTON TENNECO INC SAID ONE OF ITS UNITS SOLD A 20 STAKE IN A NATURALGAS MARKETING AND PIPELINE SUBSIDIARY TO RUHRGAS A GERMAN NATURALGAS CONCERN TERMS WEREN'T DISCLOSED THE UNIT TENNECO GAS SOLD RUHRGAS AN INTEREST IN ITS TENNECO ENERGY RESOURCES CORP WITH ANNUAL REVENUE OF MORE THAN 2 BILLION TENNECO ENERGY RESOURCES INCLUDES OPERATIONS IN NATURALGAS MARKETING GATHERING PROCESSING AND TRADING IN ADDITION TO 2000 MILES OF PIPELINES MOSTLY IN TEXAS TENNECO GAS AND RUHRGAS ALSO AGREED TO JOINTLY PURSUE PROJECTS OF COMMON INTEREST IN THE EUROPEAN ENERGY MARKET 9402140133 940214 AMERICAN CITY TO REPORT '93 NET ROSE AS PROJECTED BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTE NC AMERICAN CITY BUSINESS JOURNALS INC IS COMFORTABLE WITH ANALYSTS' EARNINGS PROJECTIONS OF 105 A SHARE FOR 1993 CHAIRMAN RAY SHAW SAID AMERICAN CITY WHICH OPERATES 27 LOCAL BUSINESS JOURNALS AND OTHER SPECIALTY PUBLICATIONS REPORTED NET INCOME OF 39 MILLION OR 61 CENTS A SHARE ON REVENUE OF 707 MILLION IN 1992 MR SHAW SAID HE ALSO IS COMFORTABLE WITH ANALYSTS' REVENUE PROJECTIONS FOR THE YEAR OF ABOUT 86 MILLION THE YEAREND RESULTS EXPECTED TO BE RELEASED THIS WEEK WILL MARK THE COMPANY'S FOURTH CONSECUTIVE RECORD YEAR MR SHAW SAID HE ATTRIBUTED THE IMPROVED RESULTS TO A BETTER ECONOMY STRONGER MANAGEMENT IMPROVED EDITORIAL PRODUCTS AND INCREASED RECOGNITION BY ADVERTISERS OF LOCAL BUSINESS JOURNALS MR SHAW ALSO SAID HE IS COMFORTABLE WITH ANALYSTS' FOURTHQUARTER EARNINGS PROJECTIONS OF 54 CENTS A SHARE HE EXPECTS THE COMPANY TO REPORT A 20 INCREASE IN FOURTHQUARTER REVENUE THE QUARTER AND YEAREND FIGURES INCLUDE RESULTS FROM WINSTON CUP SCENE A TABLOID NEWSPAPER TARGETED TO STOCKCAR FANS AND SAN JOSE BUSINESS JOURNAL BOTH OF WHICH THE COMPANY ACQUIRED LAST YEAR EXCLUDING THE 1993 ACQUISITIONS FOURTHQUARTER REVENUE WOULD BE UP 11 HE SAID FOR THE FOURTH QUARTER OF 1992 AMERICAN CITY EARNED 23 MILLION OR 58 CENTS A SHARE ON REVENUE OF 206 MILLION EARNINGS IN THE 1993 FOURTH QUARTER WERE AFFECTED BY A HIGHER TAX RATE AMERICAN CITY EXPECTS TO HAVE ABOUT 8 MILLION IN FREECASH FLOW THIS YEAR AND IS ON THE LOOKOUT FOR ATTRACTIVE ACQUISITIONS MR SHAW SAID THE COMPANY MIGHT BUY MORE BUSINESS JOURNALS IF THE MARKETS AND PRICES ARE RIGHT THE COMPANY ALSO HAS BEEN ENCOURAGED BY THE RECEPTION OF WINSTON CUP SCENE AND CHOP TALK A NATIONAL PUBLICATION DEVOTED TO THE ATLANTA BRAVES BASEBALL TEAM AND WOULD ENTERTAIN OTHER OPPORTUNITIES IN NICHE SPORTS PUBLISHING MR SHAW SAID IN MARCH THE COMPANY WILL INTRODUCE BIZ A MAGAZINE TARGETED TO THE HEADS OF THE NATION'S FASTESTGROWING SMALL BUSINESSES IT WILL BE PUBLISHED BY A NEW COMPANY OWNED EQUALLY BY AMERICAN CITY AND DOW JONES & CO NEW YORK WHICH PUBLISHES THE DOMESTIC AND INTERNATIONAL EDITIONS OF THE WALL STREET JOURNAL BARRON'S MAGAZINE COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONICINFORMATION SERVICES MR SHAW SAID EARLY ADVERTISER RESPONSE HAS BEEN GOOD AMERICAN CITY IS LOOKING FOR ANOTHER YEAR OF OPERATINGPERFORMANCE IMPROVEMENTS IN 1994 MR SHAW SAID WE'RE STARTING OUT WITH A STRONG JANUARY ADVERTISING GENERALLY SEEMS TO BE FIRMING FOR THE NEWSPAPER INDUSTRY HE ADDED MOST PEOPLE I TALK TO IN THE INDUSTRY FEEL A LOT BETTER THIS TIME THIS YEAR THAN THEY DID THIS TIME LAST YEAR 9402140132 940214 BLACKROCK FINANCIAL REDUCES DIVIDENDS ON 11 BOND FUNDS NEW YORK BLACKROCK FINANCIAL MANAGEMENT SAID IT IS CUTTING DIVIDENDS ON ALL OF ITS 11 CLOSEDEND TAXABLE BOND FUNDS THE CUTS TAKE EFFECT WITH MARCH 31 DIVIDENDS ALL OF THE FUNDS INVEST IN MORTGAGEBACKED SECURITIES WHICH WERE HURT BY DECLINING INTEREST RATES IN THE PAST 18 MONTHS LOWER RATES CAUSED A RUSH BY HOMEOWNERS TO REFINANCE THE MORTGAGES THAT BACK THE FUNDS' PORTFOLIOS WHICH IN TURN REDUCED THE FUNDS' INTEREST INCOME AND LED TO THE DIVIDEND CUTS BLACKROCK FINANCIAL SAID IN A STATEMENT BECAUSE INTEREST RATES ARE SIGNIFICANTLY LOWER TODAY THAN THEY WERE EVEN A YEAR AGO THE REINVESTMENT INTEREST RATE OF THE FUNDS HAS DECLINED BLACKROCK SAID IF THEY DIDN'T CUT DIVIDENDS THE FUNDS WOULD BE FORCED TO DIP INTO THEIR CAPITAL TO MAKE PAYMENTS TO SHAREHOLDERS SAID CLAY LEBHAR A MANAGING DIRECTOR AT PRUDENTIAL SECURITIES WHICH UNDERWROTE MANY OF THE FUNDS' INITIAL PUBLIC OFFERINGS ONE FUND BLACKROCK INCOME TRUST INC IS CUTTING ITS DIVIDEND TO 625 CENTS A SHARE FROM 708 CENTS ITS STOCK ON THE NEW YORK STOCK EXCHANGE DROPPED TO 8125 A SHARE IN COMPOSITE TRADING FRIDAY DOWN 25 CENTS ANOTHER FUND BLACKROCK ADVANTAGE TERM TRUST INC IS CUTTING ITS DIVIDEND TO 6042 CENTS A SHARE FROM 6875 CENTS ITS SHARES CLOSED AT 9625 DOWN 125 CENTS IN COMPOSITE TRADING THE TERM NATURE OF SOME OF THE FUNDS CONTRIBUTED TO BLACKROCK'S DECISION TO REDUCE THEIR DIVIDENDS THESE FUNDS MATURE AT A CERTAIN DATE IN THE FUTURE AT WHICH TIME THEY TRY TO HAVE A TARGET VALUE PER SHARE TO HELP INSULATE THE FUNDS FROM LOSSES AS THEY APPROACH MATURITY THEY TEND TO BUY BONDS WITH SHORTER AND SHORTER MATURITIES OVER TIME BECAUSE SHORTTERM INTEREST RATES ARE SO LOW THAT HAS ALSO SQUEEZED THE FUNDS' INTEREST INCOME 9402140131 940214 MARKETING & MEDIA ABC NEWS PROBES INCIDENT OF STAGING ON BROADCAST NEW YORK ABC NEWS SAID IT IS LOOKING INTO AN INCIDENT OF STAGING ON WORLD NEWS TONIGHT WITH PETER JENNINGS IN THE JAN 26 INCIDENT THE BROADCAST AIRED A REPORT FROM CORRESPONDENT COKIE ROBERTS WHO WAS SHOWN IN FRONT OF CAPITOL HILL WEARING A COAT MR JENNINGS REFERRED SEVERAL TIMES TO THE FACT THAT SHE WAS LIVE ON CAPITOL HILL IN FACT MS ROBERTS WAS IN THE STUDIO AND THE CAPITOL SCENE WAS IMPOSED ELECTRONICALLY BUT MR JENNINGS DID NOT KNOW THAT THE NEWSCAST FREQUENTLY USES SUCH A BACKDROP FOR COSMETIC REASONS BUT ALWAYS MAKES CLEAR THAT THE REPORTER IS NOT ACTUALLY AT THE SCENE MS ROBERTS WAS WEARING THE COAT WHICH ADDED TO THE ILLUSION AT THE REQUEST OF THE NEWSCAST'S NEW EXECUTIVE PRODUCER RICK KAPLAN THROUGH AN ABC NEWS SPOKESWOMAN MR KAPLAN DECLINED TO COMMENT YESTERDAY ON THE INCIDENT WHICH WAS A VIOLATION OF ABC NEWS POLICY THE INCIDENT WAS FIRST REPORTED IN YESTERDAY'S ISSUE OF VARIETY A TRADE PAPER ABC NEWS IS A DIVISION OF CAPITAL CITIES/ABC INC 9402140130 940214 INTERNATIONAL JAPANESE RETAILER SHOWS LOW PRICES SUIT SALARYMEN FINE AOYAMA PROFITS BY CHALLENGE TO THE DEPARTMENT STORES SELLING CLOTHES AT DISCOUNT BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL FUKUYAMA JAPAN IN THIS SMALL CITY IN SOUTHWESTERN JAPAN GORO AOYAMA SITS AT THE CENTER OF A RETAILING EMPIRE BUILT ON CHEAP SUITS SUITS AREN'T A FASHION STATEMENT THEY'RE SIMPLY A BUSINESSMAN'S UNIFORM SAYS MR AOYAMA HEAD OF THE 514STORE AOYAMA TRADING CO DISCOUNTSUIT CHAIN WHY SHOULD LEGIONS OF SALARYMEN SPEND HARDEARNED CASH ON 700 SUITS SOLD BY DEPARTMENT STORES HE ARGUES WHEN AOYAMA'S MASSPRODUCED 275 SUITS ARE DECENT ENOUGH EVEN IN LABELCONSCIOUS JAPAN MANY OF HIS COMPATRIOTS ARE ASKING THE SAME QUESTION AT A TIME WHEN DEPARTMENTSTORE SALES ARE PLUNGING AOYAMA STANDS APART POSTING STEADY INCREASES ANALYSTS SUPPORT THE COMPANY'S ASSERTIONS THAT IT ACCOUNTS FOR ABOUT ONE OF EVERY FOUR SUITS SOLD IN JAPAN IN THE FISCAL YEAR ENDED MARCH 31 1993 SALES ROSE 30 TO 1509 BILLION YEN 139 BILLION WHILE PRETAX PROFIT WAS UP 12 AT 302 BILLION YEN LAST WEEK THE JAPANESE BUSINESS DAILY NIHON KEIZAI SHIMBUN SAID AOYAMA IS LIKELY TO REPORT AN 11 INCREASE IN PRETAX PROFIT FOR FISCAL 1994 TO A RECORD 335 BILLION YEN ITS SALES ARE PROJECTED TO GROW 26 TO 190 BILLION YEN HOWEVER THOSE NUMBERS AREN'T AS GREAT AS THE ESTIMATES AOYAMA ITSELF IS PROJECTING INDEED SOME OF THE COMPANY'S CRITICS SAY THAT AOYAMA TENDS TO OVERESTIMATE OTHER ASPECTS OF ITS BUSINESS IN PARTICULAR REGULATORS ARE LOOKING INTO WHETHER THE COMPANY'S ADS OVERSTATE THE SAVINGS ON ITS SUITS MR AOYAMA SAYS HE HASN'T VIOLATED ANY RULES AND REFUSES TO HALT THE ADS CRITICISM NOTWITHSTANDING THE 63YEAROLD MR AOYAMA WHOSE PRIVATE COMPANY OWNS 85 OF AOYAMA TRADING IS REACHING THE PEAK OF HIS CAREER AT AN AGE WHEN MANY BUSINESSMEN BEGIN TO SLOW DOWN MOREOVER HE HAS BECOME A FITTING SYMBOL OF THE NEW THINKING CHALLENGING JAPAN'S BUSINESS ESTABLISHMENT AS IT CONFRONTS ECONOMIC DEREGULATION AND ECONOMIC DOWNTURN AFTER STARTING OUT WITH A SINGLE SMALL SUIT OUTLET IN RURAL JAPAN 30 YEARS AGO MR AOYAMA NOW HAS BECOME A SOURCE OF RETAILING SAVVY INSPIRING WOULDBE ENTREPRENEURS AND PROVIDING LESSONS FOR AILING CORPORATE GIANTS HE IS THE SUBJECT OF SEVERAL HOWTO BOOKS ON BUSINESS AND HAS WRITTEN A HOTSELLING AUTOBIOGRAPHY HE APPEARS OFTEN IN MAGAZINES OFFERING A MESSAGE OF TAKECHARGE GUMPTION THAT IS UNUSUAL FOR JAPAN THE FIFTH SON OF A CARPENTER WHO BUILT SHRINES MR AOYAMA SAYS HE ALWAYS HAD A BURNING DESIRE TO BE NO 1 WHEN ILLNESS PREVENTED HIM FROM ATTENDING UNIVERSITY HE VOWED TO SUCCEED IN BUSINESS HIS DEDICATION SHOWS IN HIS HANDSON MANAGEMENT STYLE UNTIL RECENTLY HE PERSONALLY SELECTED THE SITES OF NEW STORES HE GETS UP AT 4 AM TO PORE THROUGH A THICK BOOK THAT COMPARES SALES AT HIS STORES AGAINST THOSE OF COMPETITORS WEEKENDS ARE RESERVED FOR STORE OPENINGS SOMETIMES FOUR A DAY HOLIDAYS ARE FOR OTHER PEOPLE TO ENJOY HIS INDIVIDUALISM HAS KEPT HIM OUTSIDE JAPAN'S MAINSTREAM BUSINESS COMMUNITY AOYAMA'S HEAD OFFICE IS PERCHED ATOP ONE OF ITS DISCOUNT STORES NEXT TO A MCDONALD'S RESTAURANT IN A FUKUYAMA SUBURB FOR AN INTERVIEW MR AOYAMA HIMSELF WEARS A 325 AOYAMA SUIT AND APPEARS UNAWARE OF A HOLE IN HIS SHOE HE DOESN'T PARTICIPATE IN NATIONAL RETAIL ASSOCIATIONS I'M NOT GOING TO ASSOCIATE MYSELF WITH THE KIND OF PEOPLE WHO ALWAYS ACT TOGETHER AND TRY TO AVOID GETTING HURT HE SAYS MR AOYAMA BUYS HIS MERCHANDISE IN BULK DIRECTLY FROM MANUFACTURERS MOST OF THE SUITS ARE OF SIMPLE SIMILAR DESIGNS AND SOME ARE STITCHED IN CHINA AND NORTH KOREA WHERE LABOR IS RELATIVELY CHEAP HE ALSO IMPORTS SOME FOREIGN BUSINESS STRATEGIES FOR INSTANCE AFTER SEEING ROADSIDE SHOPPING CENTERS IN CALIFORNIA MR AOYAMA REALIZED THAT MANY OF HIS CUSTOMERS BELONG TO THE GROWING RANKS OF CARDRIVING JAPANESE SUBURBANITES SO WHILE MANY JAPANESE RETAILERS WERE BUSY OPENING STORES IN URBAN CENTERS AOYAMA QUICKLY BUILT MANY OUTLETS WITH PARKING IN RURAL AREAS WHERE RENTS ARE LOWER HE WAS HOWEVER ALSO BRAZEN ENOUGH TO OPEN A STORE IN TOKYO'S TONY GINZA DISTRICT RIGHT NEXT TO THE NATION'S CLASSIEST DEPARTMENT STORES THE GINZA GAMBIT GRABBED HEADLINES MR AOYAMA MADE THE MOST OF THE ATTENTION HE OPENED THE STORE AT 7 AM AND OFFERED 25 SUITS ON THE FIRST DAY THE CAMERAS WHIRRED AS BARGAIN HUNTERS CLAWED AT THE RACKS DEPARTMENT STORES ONCE DISMISSIVE ARE NOW SHOCKED TO FIND THIS NOFRILLS INTRUDER SIPHONING AWAY BUSINESS AND CRITICIZING THEIR STYLE WHAT'S MORE HIS SUCCESS HAS SPARKED INTENSE COMPETITION AS COPYCAT SUIT CHAINS HAVE SPROUTED UP AROUND THE COUNTRY ONE AFTER ANOTHER DEPARTMENT STORES ARE SLASHING SUIT PRICES MANY CONSUMERS ONCE DISMISSED AOYAMA TOO ASSUMING THAT ITS LOW PRICES MEANT SHODDY QUALITY BUT NOFRILLS STORES AND LOW PRICES FIT PERFECTLY THE CURRENT MOOD IN JAPAN WHERE TOUGH TIMES ARE MAKING CONSUMERS MORE PRICE CONSCIOUS MR AOYAMA SAYS HE PLANS TO OPEN AS MANY AS 110 STORES IN JAPAN ALONE THIS YEAR HE ALSO HOPES TO TRANSPLANT HIS SUCCESS ABROAD PLANNING TO OPEN A STORE IN SHANGHAI IN THE COMING MONTHS AND IN TIME 15 TO 20 STORES IN TAIWAN ALL IN ALL HE VOWS TO INCREASE SALES SIXFOLD TO ONE TRILLION YEN IN THE NEXT DECADE STILL MR AOYAMA SAYS HE REALIZES THAT EVENTUALLY HE MUST SPREAD HIS BUSINESS TO OTHER AREAS SUCH AS MEN'S CASUAL CLOTHES HE RECENTLY LINKED UP WITH GIORDANO LTD A HONG KONG CLOTHING RETAILER AND JC PENNEY CO OF THE US TO SELL THEIR CASUAL CLOTHES IN JAPAN 9402140129 940214 ENVIRONMENTAL POLICE IN EUROPE WAGE WAR ON POLLUTERS DESPITE SCARCE FUNDS BY JAMES PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL ANTWERP POLICE SGT JOSEPH SMIT'S MEN ARM THEMSELVES WITH REVOLVERS THEN BOOST THEIR FIREPOWER WITH SOME ODD WEAPONS GAS MASKS COMPUTERS AND GREENISH BOTTLES FOR TAKING SAMPLES THEY'RE ON THE PROWL FOR A MOTLEY BAND OF CROOKS SCOFFLAWS WHO DIRTY THE AIR WITH NOXIOUS FUMES AND FOUL THE WATER WITH HEAVY METALS BUT THE ODDS ARE STACKED AGAINST ANTWERP'S ENVIRONMENT POLICE WHO PATROL SOME 13000 COMPANIES WITH JUST FIVE FULL OFFICERS AND TWO SQUAD CARS WE'VE BEEN TRYING FOR A THIRD CAR FOR THREE YEARS SHRUGS SGT SMIT A STRAPPING MAN DRESSED IN A GOLF SHIRT DESPITE THE ICY RAIN OUTSIDE HE COULD USE FIVE MORE OFFICERS TOO BUT THE CITY SAYS THERE'S NO MONEY FOR IT SGT SMIT'S PLIGHT IS COMMON FOR EUROPE THOUGH THE EUROPEAN COMMISSION THE EXECUTIVE ARM OF THE EUROPEAN UNION HAS PUMPED OUT REAMS OF GREEN LEGISLATION EU MEMBERS SPEND LESS THAN 2 OF THEIR GROSS DOMESTIC PRODUCT ON ALL ENVIRONMENTAL EFFORTS COMBINED ENFORCEMENT WOULD BE A FRACTION OF THAT A SMALL FRACTION SAYS EU ENVIRONMENT COMMISSIONER YANNIS PALEOKRASSAS AS A RESULT MOST ENFORCEMENT GROUPS IN THE EU ARE OVERWHELMED AND UNDERFUNDED BUT THEY MIGHT ALSO CONSIDER THEMSELVES FORTUNATE AT LEAST THERE IS AN ENVIRONMENTAL POLICE IN ANTWERP MR PALEOKRASSAS SAYS IN MOST MEMBER STATES THERE IS NO ENVIRONMENTAL POLICE ONE EXPLANATION FOR THE EU'S PATCHY ENFORCEMENT EFFORTS CAN BE FOUND IN THE WAY THE UNION'S SINGLE HOUSE IS BEING CONSTRUCTED BLUEPRINTS ARE HANDED DOWN FROM THE HIGHEST POLITICAL RAFTERS BUT ENFORCEMENT IS HAMMERED TOGETHER BY LOCAL AUTHORITIES ON THE GROUND NOT SURPRISINGLY IT'S PROVING DIFFICULT TO TURN THE ARCHITECTS' GRAND VISION INTO SOMETHING THAT WORKS JUST HOW DIFFICULT CAN BE SEEN AT ANTWERP'S ENVIRONMENT POLICE IN A BARE OFFICE PARTLY FURNISHED WITH OLD CHAIRS BROUGHT FROM HOME INSPECTOR WALTER VAN MIEGHEM FLIPS THROUGH A THICK BOOK LISTING EMISSIONS PERMITS HELD BY THOUSANDS OF LOCAL COMPANIES THE FINE PRINT COVERS EVERYTHING FROM ONEMAN AUTOPAINT SHOPS TO SPRAWLING PETROCHEMICAL PLANTS SGT VAN MIEGHEM AND HIS COWORKERS ARE SUPPOSED TO KEEP TABS ON THEM ALL PLUS FERRET OUT OPERATORS WHO HOLD NO LICENSES IT'S A COMPLICATED BEAT AND IT'S NOT GETTING ANY SIMPLER DESPITE EFFORTS TO CONSOLIDATE SOME EU GREEN LAWS THERE ARE SOME 200 PIECES OF SUCH LEGISLATION AND MORE ARE IN THE PIPELINE BUT THOSE MEASURES SAY SURPRISINGLY LITTLE ABOUT ENFORCEMENT WHICH REMAINS THE RESPONSIBILITY OF EACH MEMBER STATE THE COMMISSION'S ENVIRONMENTAL DIRECTORATE IS IN NO POSITION TO POLICE THE LAWS ANYWAY WITH A PERMANENT STAFF OF ABOUT 350 PEOPLE IT HAS NO ENFORCEMENT PERSONNEL AND RELIES ON WORRIED CITIZENS AND ENVIRONMENTAL GROUPS TO REPORT PROBLEMS THE ENVIRONMENTALISTS THEMSELVES LACK THE MANPOWER FOR COLLECTING COMPREHENSIVE STATISTICS IN ALL 12 MEMBER STATES IT'S JUST NOT SOMETHING WE HAVE THE RESOURCES TO DO LAMENTS SUSAN LEUBUSCHER OF GREENPEACE IN BRUSSELS ENFORCEMENT VARIES GREATLY THROUGHOUT THE EU THE STAR PERFORMERS ARE DENMARK THE NETHERLANDS AND GERMANY WHERE EACH FEDERAL STATE HAS ITS OWN ENVIRONMENTAL AUTHORITIES ENFORCEMENT ALSO VARIES FROM TOWN TO TOWN REGION TO REGION BELGIUM FOR EXAMPLE IS CONSIDERED TO HAVE A POOR ENFORCEMENT RECORD COMPARED WITH ITS GREEN NEIGHBORS YET ANTWERP'S EFFORTS COMPARE WELL WITH THOSE MADE IN GHENT WHICH DOESN'T CARRY OUT SYSTEMATIC INSPECTIONS AND BOTH CITIES SURPASS THEIR HOME REGION OF FLANDERS WHERE SOME 100 INSPECTORS STRUGGLE TO MONITOR THOUSANDS OF SMALL FACTORIES AND POTENTIAL DUMP SITES DOTTING THE FLAT LANDSCAPE OUT IN THE COUNTRYSIDE FLEMISH LOCALS OFTEN SPOT APPARENT VIOLATIONS TONS OF PLASTIC WASTE SHOW UP IN VACANT LOTS PIG MANURE FOULS CANALS DYES TURN BROOKS RED OR ORANGE DEPENDING ON WHAT LOCAL FACTORIES ARE MAKING WE WOULD BE MORE EFFECTIVE IF WE HAD 200 INSPECTORS SAYS MARC PALLEMAERTS A CABINET MEMBER IN FLANDERS'S ENVIRONMENTAL MINISTRY BACK IN ANTWERP ON AN ICY MORNING WORRIED CITIZENS BEGIN PHONING THE ENVIRONMENT POLICE BEFORE THE OFFICERS HAVE TASTED THEIR COFFEE SOMEBODY HAS DROPPED A TRUCKLOAD OF TRASH IN THE STREET OUTSIDE A CITY DUMP A NEW DRY CLEANER DOESN'T HAVE A PERMIT SUCH INCIDENTS CAN TURN OUT TO BE MORE SERIOUS THAN THEY SEEM ONE COMPLAINT ABOUT BEDDING DUMPED NEAR A SMELTER TURNED UP MOUNDS OF SAND LACED WITH ARSENIC COBALT AND OTHER HEAVY METALS THE SHOP WITHOUT A PERMIT REFLECTS ANOTHER REALITY HERE AS ELSEWHERE SMALL OPERATORS ARE NOTORIOUSLY TOUGH TO PATROL MANY DON'T KNOW THE LAWS OTHERS SAY THEY CAN'T AFFORD TO OBEY THEM SGT VAN MIEGHEM WINCES AS HE RECALLS THE TIMES HE HAS TOLD MOMANDPOP OPERATIONS TO CLEAN UP THEIR ACTS OR SHUT DOWN BRITISH ENVIRONMENTAL CONSULTANT DAVID GILBERT HAS VISITED THE ANTWERP TEAM AND SIMILAR FORCES AS PART OF AN ENFORCEMENT STUDY FOR THE DUTCH GOVERNMENT CONDUCTED BY HIS FIRM ENVIRONMENTAL RESOURCES MANAGEMENT HIS FINDINGS SEEM TO RAISE MORE QUESTIONS THAN ANSWERS CAN YOU TRUST LABORATORY TESTS OF EMISSIONS AFTER ALL TWO LABS USING DIFFERENT TECHNIQUES WILL DRAW DIFFERENT CONCLUSIONS FROM THE SAME SAMPLE WHAT IS AN INSPECTOR AN INSPECTOR MAY AS IN BRITAIN BE A LOCAL ENVIRONMENTAL HEALTH OFFICER WHO MONITORS THE QUALITY OF FOOD SOLD IN SHOPS AS WELL AS ENVIRONMENTAL MATTERS AND WHAT HAPPENS WHEN A CASE COMES TO COURT YOU MIGHT PROSECUTE A LOT OF PEOPLE BUT THEY MIGHT STILL BE KICKING STUFF OUT INTO THE ENVIRONMENT DR GILBERT SAYS THIS GALLS SGT SMIT'S MEN PARTLY BECAUSE THEY USED TO PUT ALLEGED POLLUTERS BEHIND BARS WITHOUT GOING THROUGH THE COURTS POLICE AND ENVIRONMENTAL GROUPS SAY A SPATE OF SUCH PREVENTIVE DETENTIONS IN THE LATE 1980S SHOCKED MANY MANAGERS IN ANTWERP INTO INVESTING IN GREEN PROGRAMS BUT THE CAMPAIGN ENDED IN 1990 WHEN BELGIAN LEGISLATORS CUT BACK THE USE OF PREVENTIVE DETENTION RAMPANT ENFORCEMENT PROBLEMS PROMPT MANY OBSERVERS TO PIN THEIR HOPES ON THE EU'S NEW ENVIRONMENT AGENCY AN INSTITUTION CREATED IN JUNE 1990 BUT INAUGURATED ONLY LAST MONTH AFTER BICKERING EU LEADERS FINALLY AGREED ON A SITE FOR THE AGENCY DENMARK WITH AN ANNUAL BUDGET OF EIGHT MILLION EUROPEAN CURRENCY UNITS 72 MILLION THE AGENCY WILL INITIALLY LIMIT ITSELF TO COLLECTING AND EVALUATING INFORMATION NO MEAN TASK CONSIDERING THE EU'S LACK OF ENVIRONMENTAL DATA BUT MANY OBSERVERS ALSO EXPECT THE AGENCY TO DO SERIOUS TEETHING IN ITS FIRST TWO YEARS AND END UP AS A WATCHDOG WITH A FIRM BITE THE AGENCY WILL CREATE STANDARD CRITERIA FOR ALL NATIONAL INSPECTORS AND WITHIN TWO YEARS A REVIEW WILL DETERMINE WHETHER ITS POWERS SHOULD BE EXTENDED TO MONITORING EVENTUALLY THAT COULD PAVE THE WAY FOR A EUROPEAN VERSION OF THE US ENVIRONMENTAL PROTECTION AGENCY MONICA HOUSTONWAESCH IN BONN CONTRIBUTED TO THIS ARTICLE 9402140128 940214 EZ COMMUNICATIONS' PURCHASE FAIRFAX VA EZ COMMUNICATIONS INC SAID IT PURCHASED RADIO STATION KNCIFM SACRAMENTO CALIF FROM NATIONWIDE COMMUNICATIONS INC OF COLUMBUS OHIO FOR 13 MILLION THE PURCHASE GIVES EZ A SECOND FULLPOWER FM STATION IN SACRAMENTO WHERE IT ALSO OWNS KRAKFM AND KHTKAM AND EZ SAID IT SOLD SACRAMENTO STATION KQBRFM TO PROGRESSIVE MEDIA GROUP INC SACRAMENTO FOR 25 MILLION WITH THE PENDING PURCHASES EZ WILL OWN 14 RADIO STATIONS 9402140127 940214 TECHNOLOGY POWERSOFT AIMS FOR PC MARKET WITH DATABASE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL POWERSOFT CORP WHICH GREW SHARPLY IN THE PAST YEAR BY SELLING COMPLEX SOFTWARE TOOLS TO LARGE CORPORATIONS WILL TARGET PERSONALCOMPUTER SOFTWARE BUYERS WITH A DESKTOP DATABASE PACKAGE TO BE UNVEILED TODAY THE MOVE PUTS THE BURLINGTON MASSBASED UPSTART IN DIRECT COMPETITION WITH BORLAND INTERNATIONAL INC SOFTWARE PUBLISHING CORP AND TO SOME EXTENT EVEN MICROSOFT CORP THE MARKET LEADER MITCHELL E KERTZMAN POWERSOFT'S CHAIRMAN AND CHIEF EXECUTIVE SAID YESTERDAY HE'S PUSHING INTO THE RETAIL MAINSTREAM OF THE MARKET BECAUSE HE EXPECTED BORLAND MICROSOFT AND OTHER DATABASE MAKERS WOULD SOON ATTACK HIS OWN NICHE WE WANT TO ENGAGE THEM IN THEIR SPACE INSTEAD WHERE THEY'RE RELATIVELY VULNERABLE RIGHT NOW SOME ANALYSTS SAY BORLAND COULD HAVE THE MOST TO LOSE POWERSOFT IS GOING STRAIGHT FOR BORLAND'S JUGULAR AT A TIME WHEN THEY'RE ESPECIALLY VULNERABLE SAID DONALD DEPALMA AN INDUSTRY ANALYST AT FORRESTER RESEARCH MILLIONS OF USERS HAVE BEEN LEFT BEHIND BY BORLAND HE SAID THE SCOTTS VALLEY CALIF CONCERN HAS REPEATEDLY DELAYED NEEDED UPDATES FOR ITS AGING DBASE LINE WHICH HAD DOMINATED THE MARKET ANALYSTS NOW SAY THE NEW DBASE WON'T BE OUT UNTIL JUNE DAVID WATKINS A BORLAND VICE PRESIDENT DISMISSED HIS WOULDBE RIVAL WE'VE BEEN IN THE BUSINESS 10 YEARS AND THEY'VE BEEN IN IT FOR ABOUT TWO HOURS HE SAID BORLAND HAS NINE MILLION USERS WHO KNOW DBASE PROGRAMMING HE SAID WHILE POWERSOFT IS ASKING THEM TO FORGET EVERYTHING THEY KNOW TO LEARN A WHOLE NEW LANGUAGE POWERSOFT'S DESIGN EMBRACES THE FASTGROWING CLIENTSERVER MODEL IN WHICH DESKTOP PCS OR CLIENTS ARE TIED TO LARGE SERVER COMPUTERS IN A NETWORK MOST PC DATABASES WERE BUILT FOR STANDALONE PCS AND DON'T EASILY SCALE UP TO LARGE CLIENTSERVER SYSTEMS POWERSOFT'S SUDDEN THRUST INTO PC SOFTWARE FOLLOWS A YEAR OF STRONG GROWTH FOR ITS CORE POWERBUILDER LINE WHICH IS SOLD TO PROFESSIONAL DEVELOPERS OF SOFTWARE FOR LARGE SYSTEMS LAST YEAR REVENUE MORE THAN DOUBLED TO 51 MILLION FROM 21 MILLION IN 1992 POWERSOFT WILL SELL ITS NEW PRODUCT POWERBUILDER DESKTOP AT A PROMOTIONAL PRICE OF 249 THROUGH MAY 31 WHEN IT RISES TO A RETAIL PRICE OF 695 THE COMPANY ALSO WILL TRIM PRICING ACROSS ITS ENTIRE LINE CUTTING SOME PACKAGES BY 100 ITS FLAGSHIP POWERBUILDER ENTERPRISE WILL SLIP 200 TO A SUGGESTED RETAIL PRICE OF 3395 POWERSOFT MUST BUILD A RETAIL PRESENCE SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO WHILE BORLAND AND MICROSOFT ALREADY HAVE WELLESTABLISHED BROADBASED DISTRIBUTION CHANNELS SEPARATELY POWERSOFT SAID FRIDAY IT COMPLETED ITS PURCHASE OF WATCOM CORP WATERLOO ONTARIO FOR 111 MILLION POWERSOFT SHARES OR ABOUT 58 MILLION THE ACQUISITION ANNOUNCED LAST YEAR BROUGHT POWERSOFT STRATEGIC NEW DATABASE TECHNOLOGY ANALYSTS SAID 9402140126 940214 PALOMAR MEDICAL ACQUISITION BEVERLY MASS PALOMAR MEDICAL TECHNOLOGIES INC COMPLETED ITS ACQUISITION OF DYNACO CORP AND DYNACO WEST CORP WHICH DEVELOP AND MANUFACTURE HIGHDENSITY ELECTRONIC CIRCUITRY THE COMPANY SAID IN JANUARY THAT IT HAD SIGNED AN AGREEMENT TO ACQUIRE DYNACO AND DYNACO WEST OF TEMPE ARIZ FOR 13 MILLION IN CASH AND THE ASSUMPTION OF ABOUT 6 MILLION IN LIABILITIES 9402140125 940214 AIR NEW ZEALAND HAD 45 RISE IN 1ST HALF IN OPERATING PROFIT SPECIAL TO THE WALL STREET JOURNAL WELLINGTON NEW ZEALAND AIR NEW ZEALAND REPORTED THAT OPERATING PROFIT AFTER TAX ROSE 45 TO 881 MILLION NEW ZEALAND DOLLARS US506 MILLION IN ITS FISCAL FIRST HALF ENDED DEC 31 THE CARRIER'S OPERATING PROFIT CLIMBED FROM NZ609 MILLION A YEAR EARLIER SALES ROSE TO NZ127 BILLION FROM NZ116 BILLION AIR NEW ZEALAND SAID THE FIRSTHALF WAS CHARACTERIZED BY ENCOURAGING SIGNS OF GROWTH IN TOURIST NUMBERS THE WITHDRAWAL OF US CARRIER CONTINENTAL AIRLINES FROM THE NEW ZEALAND MARKET LAST YEAR ALLOWED AIR NEW ZEALAND TO INCREASE ITS CAPACITY ON SOME ROUTES HOWEVER IT ADDED THAT THE LATEST GROWTH IN EARNINGS WAS DRIVEN ALMOST ENTIRELY BY GROWTH IN PASSENGER TRAFFIC THE FAVORABLE EFFECTS OF LOW FUEL AND INTEREST COSTS AND THE BENEFIT OF TAXATION OFFSETS ALSO CONTRIBUTED TO THE PROFIT INCREASE AIR NEW ZEALAND SAID THE AIRLINE ADDED THAT FOR THE YEAR IT IS EXPECTED TO COMFORTABLY EXCEED ITS PROFIT OF NZ1395 MILLION THE PREVIOUS FISCAL YEAR THE AIRLINE SAID ITS STRONG BALANCE SHEET AND SUBSTANTIAL CASH RESERVES MEAN IT HAS DECIDED TO SUSPEND ITS DIVIDEND REINVESTMENT PLAN WHICH ALLOWS SHAREHOLDERS TO TAKE BONUS SHARES INSTEAD OF DIVIDENDS AIR NEW ZEALAND IS 35OWNED BY BRIERLEY INVESTMENTS LTD A NEW ZEALAND INVESTMENT AND HOTEL CONCERN 20 BY QANTAS AIRWAYS OF AUSTRALIA 5 BY JAPAN AIRLINES AND 40 BY INSTITUTIONAL AND PRIVATE INVESTORS 9402140124 940214 INTERNATIONAL MEXICO TO SELL STOCK IN 3 BANKS FOR 24 BILLION BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN GOVERNMENT SAID IT PLANS TO SELL 24 BILLION OF STOCK IN THREE BANKS APPARENTLY IN PART TO MAKE SURE IT HAS ENOUGH MONEY TO ADDRESS THE PROBLEMS HIGHLIGHTED BY THE UPRISING IN CHIAPAS THE REVOLT IN CHIAPAS HAS FOCUSED SO MUCH ATTENTION ON THE ABJECT POVERTY THAT STILL EXISTS IN MUCH OF MEXICO THAT WITH PRESIDENTIAL ELECTIONS COMING UP IN AUGUST THE GOVERNMENT HAS SAID IT WILL SHARPLY INCREASE SPENDING ON SOCIAL PROBLEMS BUT MONEY IS HARD TO COME BY ECONOMIC WEAKNESS HAS CUT INTO TAX REVENUE ENOUGH THAT EVEN BEFORE CHIAPAS THE GOVERNMENT HAD SAID IT WOULD ONLY BREAK EVEN ON THE FEDERAL BUDGET THIS YEAR AND MANY PRIVATE ECONOMISTS FELT THE GOVERNMENT WAS BEING OVERLY OPTIMISTIC THE MEXICAN GOVERNMENT DOESN'T HAVE THE LUXURY OF CONSIDERING RUNNING UP A BIG DEFICIT BECAUSE THAT WOULD HURT MEXICO'S CREDIBILITY WITH INTERNATIONAL INVESTORS SO THE GOVERNMENT HAS BEGUN ANNOUNCING PLANS TO SELL MANY OF ITS REMAINING HOLDINGS IN ONCENATIONALIZED BUSINESSES GUILLERMO ORTIZ MARTINEZ DEPUTY FINANCE SECRETARY SAID AT A NEWS CONFERENCE THAT THE GOVERNMENT WILL SELL BY THE END OF THE YEAR ITS 21 HOLDING IN BANCOMER ITS 84 STAKE IN BANCO SERFIN AND ITS 88 INTEREST IN BANCO INTERNACIONAL HE SAID THE SALES WILL COMPLETE THE GOVERNMENT'S PRIVATIZATION OF THE NATION'S BANKS A PROGRAM THAT HAS BROUGHT IN MORE THAN 14 BILLION OVER THE PAST TWOPLUS YEARS MR ORTIZ SAID THE SALES WILL BE MADE BOTH IN MEXICAN AND IN INTERNATIONAL MARKETS BUT DIDN'T PROVIDE MORE DETAILS HIS STATEMENTS ABOUT THE BANKS FOLLOW RECENT ANNOUNCEMENTS BY GOVERNMENT OFFICIALS THAT MEXICO ALSO PLANS TO SELL ITS SMALL REMAINING STAKE IN TELEFONOS DE MEXICO SA THE TELEPHONE MONOPOLY MR ORTIZ ALSO SAID THAT THE GOVERNMENT WILL SHORTLY PUBLISH RULES FOR FOREIGN BANKS THAT WANT TO OPERATE IN MEXICO IT HAD GENERALLY BEEN EXPECTED THAT FOREIGN BANKS WOULD START OPERATING QUICKLY IN MEXICO BECAUSE THE NORTH AMERICAN FREE TRADE AGREEMENT PROVIDES FOR AN 8 MARKET SHARE FOR FOREIGN BANKS THIS YEAR IN FACT GOVERNMENT OFFICIALS HAVE OFTEN TALKED ABOUT WANTING FOREIGN BANKS TO QUICKLY START PROVIDING MORE COMPETITION FOR MEXICAN BANKS THAT WAY MEXICAN BANKS WOULD HAVE TO BEGIN LOWERING RATES THAT CAN STILL TOTAL 20 TO 30 ON MANY LOANS IN A COUNTRY WHERE INFLATION IS WELL UNDER 10 BUT MR ORTIZ'S STATEMENT SHOWS THAT IT WILL STILL BE MANY MONTHS BEFORE FOREIGN BANKS HAVE ANY KIND OF PRESENCE IN MEXICO ONCE THE FINANCE MINISTRY PUBLISHES THE RULES BANKS WILL BE GIVEN 90 DAYS TO FILE THEIR APPLICATIONS THEN THE FINANCE MINISTRY WILL DECIDE WHICH BANKS GET LICENSES ONLY THEN WILL FOREIGN BANKS START IN EARNEST TO MOVE INTO MEXICO 9402140123 940214 KLM ANNOUNCES STEPS TO TIGHTEN MANAGEMENT LINES SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES IS REDUCING THE NUMBER OF OPERATING DIVISIONS TO TWO FROM THREE AND TIGHTENING UP LINES OF MANAGEMENT THE DUTCH FLAG CARRIER SAID IT WILL RETAIN ITS PASSENGER SALES AND SERVICE AND CARGO DIVISIONS BUT ELIMINATE ITS OPERATIONS DIVISION KLM BASED IN AMSTELVEEN THE NETHERLANDS SAID IT IS MAKING THE CHANGES TO FURTHER INCREASE THE COMPANY'S ABILITY TO RESPOND RAPIDLY AND FLEXIBLY TO MARKET DEVELOPMENTS THE THREEDIVISIONAL ORGANIZATIONAL SETUP AT KLM WAS ESTABLISHED IN 1990 WITH THE INTENTION TO REORIENTATE THE COMPANY FROM A PRODUCTIONDRIVEN TO A MARKET AND SERVICEDRIVEN ENTERPRISE BUT A KLM SPOKESWOMAN SAID BUNDLING VARIOUS BUSINESS UNITS FOUR YEARS AGO UNDER THE UMBRELLA OF AN OPERATIONS DIVISION DIDN'T NECESSARILY PRODUCE OPERATING EFFICIENCIES RATHER WITH THE REMOVAL OF A LAYER OF DIVISIONAL MANAGEMENT FROM OVER THE VARIOUS OPERATING UNITS SUCH AS TECHNICAL SERVICES FLIGHT OPERATIONS AND CABIN CREW DEPARTMENTS HEADS OF SUCH UNITS NOW WILL REPORT DIRECTLY TO THE BOARD KLM SAID IT NOW PLANS TO MERGE ITS CABIN CREW DEPARTMENTS WITH FLIGHT OPERATIONS TO FORM A NEW NONDIVISIONAL FLIGHT SERVICES BUSINESS UNIT THAT WILL REPORT DIRECTLY TO THE BOARD IN THE MEANTIME KLM SAID THE PASSENGER SALES AND SERVICES DIVISION AND THE CARGO DIVISION ARE BOTH MEETING THE COMPANY'S ORIGINAL GOAL OF BRINGING ITS OPERATIONS CLOSER TO THE CLIENT BUT AT THE PASSENGER SALES AND SERVICES DIVISION KLM SAID IT IS ELIMINATING THE MANAGEMENT POSITION OF SENIOR VICE PRESIDENT FIELD ORGANIZATION KLM SAID IT WILL ALSO CONCENTRATE ITS ACTIVITIES IN NETWORK AND SCHEDULING DEVELOPMENT AND FLEET PLANNING IN ONE NEW DEPARTMENT AT PRESENT SOME OF THOSE ACTIVITIES ARE UNDER PASSENGER SALES AND SERVICES THIS MOVE WILL IMPROVE THE COMPANY'S ABILITY TO EXPLOIT OPPORTUNITIES IN PASSENGER AND CARGO MARKETS IN THE SHORT AND LONG TERM KLM SAID 9402140122 940214 SHELL BP BEGIN REFINERY EXPANSION AT SOUTH AFRICAN SITE SPECIAL TO THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA ROYAL DUTCH/SHELL GROUP AND BRITISH PETROLEUM CO ON FRIDAY OPENED THE 450 MILLION RAND 1305 MILLION EXTENSION TO THEIR JOINT SAPREF REFINERY IN DURBAN THE PROJECT IS THE LARGEST INVESTMENT BY SHELL AND BP IN SOUTH AFRICA IN MORE THAN 20 YEARS THE TWO COMPANIES SAID AND WILL INCREASE SAPREF'S 200000 BARRELADAY CAPACITY BY 35 UNDER SOUTH AFRICA'S PETROLEUM PRODUCTS ACT OF 1977 IT IS ILLEGAL TO PUBLISH PRODUCTION FIGURES THE LAW WAS PASSED AMID CONCERN THAT THE COUNTRY WOULDN'T BE ABLE TO BUY CRUDE OIL BECAUSE OF ANTIAPARTHEID OIL EMBARGOES HOWEVER IT'S ESTIMATED THAT SHELL AND BP EACH CONTROL ABOUT 17 OF THE MARKET SHARE OF SOUTH AFRICAN REFINED OIL SOUTH AFRICA'S FUEL CONSUMPTION HAS BEEN GROWING AT AN ANNUAL RATE OF 40 PROMPTING ALL THE REFINERIES TO IMPLEMENT EXPANSION PROGRAMS THREE YEARS AGO SOUTH AFRICA'S TOTAL REFINING CAPACITY IS ESTIMATED AT 430000 BARRELS A DAY WITH TOTAL OIL REFINED AT 390000 BARRELS A DAY THE SAPREF EXTENSION TOOK THREE YEARS TO BUILD WAS COMPLETED THREE MONTHS AHEAD OF SCHEDULE AND MET ALL BUDGET REQUIREMENTS THE TWO OIL GROUPS SAID 9402140121 940214 INTERNATIONAL ITALIAN TYCOON'S BROTHER ARRESTED ON GRAFT CHARGES MILAN THE BROTHER OF SILVIO BERLUSCONI THE ITALIAN MEDIA TYCOON AND LEADER OF A NEW CONSERVATIVE POLITICAL MOVEMENT WAS ARRESTED FRIDAY ON CORRUPTION CHARGES PAOLO BERLUSCONI IMPLICATED IN A SCANDAL INVOLVING ITALY'S LARGEST SAVINGS BANK CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE OR CARIPLO WAS ACCUSED OF PAYING A KICKBACK OF MORE THAN ONE BILLION LIRE 592000 TO POLITICAL PARTIES ITALIAN NEWS REPORTS SAID HE TURNED HIMSELF IN TO POLICE FOR QUESTIONING STATERUN TV SAID HE ARGUES THAT ANY MONEY PAID OUT WAS FOR NORMAL MIDDLEMAN FEES AND NOT KICKBACKS TO PARTIES EARLIER THIS MONTH SILVO BERLUSCONI ANNOUNCED HE WAS ENTERING POLITICS AND RUNNING CANDIDATES UNDER THE BANNER FORZA ITALIA GO ITALY IN PARLIAMENTARY ELECTIONS MARCH 27 TO 28 THE MEDIA TYCOON HOLDS HIMSELF UP AS AN ALTERNATIVE TO A POLITICAL CLASS DISCREDITED BY ITALY'S TWOYEAROLD CORRUPTION SCANDAL PAOLO BERLUSCONI HAS BEEN CLOSELY ASSOCIATED WITH HIS BROTHER IN BUSINESS DEALINGS ALTHOUGH IN RECENT YEARS HE CLAIMED HIS BUSINESS AFFAIRS WERE NO LONGER CONNECTED WITH HIS BROTHER'S COMPANY FININVEST 9402140120 940214 LADBROKE PROPERTIES ARE SOLD TO BURFORD IN 1467 MILLION DEAL SPECIAL TO THE WALL STREET JOURNAL LADBROKE SAID IT RECEIVED A NONREFUNDABLE DEPOSIT OF 5 MILLION A FURTHER 78 MILLION IS TO BE RECEIVED APRIL 8 THE BALANCE IN RESPECT TO TWO OF THE PROPERTIES WILL BE RECEIVED LATER THE MONEY WILL BE USED TO REDUCE DEBT LADBROKE OPERATES BETTING PARLORS AND RETAIL HOMEIMPROVEMENT STORES UNDER THE NAME OF TEXAS HOMECARE AND OWNS HILTON HOTELS OUTSIDE THE US THE COMPANY SAID THE PROPERTIES SOLD PRODUCED RENTAL INCOME OF 59 MILLION IN 1993 THE BRITISH PROPERTIES INCLUDE THREE CENTRAL LONDON OFFICE BUILDINGS OFFICES IN BIRMINGHAM GLASGOW AND READING A WAREHOUSE IN BRIGHTON A LEISURE PROPERTY IN LUTON RETAIL UNITS IN GLOUCESTER AND PENDING COMPLETION BY FEBRUARY 1998 A RETAIL AND WAREHOUSE PARK IN FALKIRK SCOTLAND THE FALKIRK PROPERTY REPRESENTS 16 MILLION OF THE SALE THE NET ASSET VALUE OF THE PROPERTIES TOGETHER WITH THE ESTIMATED COMPLETION COSTS OF THE FALKIRK PROPERTY TOTALED 955 MILLION LADBROKE SAID LADBROKE CHIEF EXECUTIVE PETER GEORGE SAID THE SALE IS THE FIRST SIGNIFICANT STEP IN OUR PLANS TO SELL DOWN OUR COMMERCIALPROPERTY INTERESTS 9402140119 940214 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT APPLE COMPUTER INC 300 MILLION OF NOTES PRICED AT 65S AT 99925 TO YIELD 651 IN 2004 THE OFFERING WAS MANAGED BY GOLDMAN SACHS & CO CITICORP SECURITIES INC CS FIRST BOSTON INC AND MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE FEB 22 1999 PRICED AT PAR TO YIELD 557 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FREEPORTMCMORAN RESOURCE PARTNERS LP 150 MILLION OF 875 SENIOR SUBORDINATED NOTES DUE FEB 15 2004 ACCORDING TO THE PARTNERSHIP INTEREST WILL BE PAID SEMIANNUALLY FEB 15 AND AUG 15 STARTING AUG 15 GOLDMAN SACHS & CO IS THE UNDERWRITER WESTERN NATIONAL CORP 150 MILLION OF SENIOR NOTES DUE FEB 15 2004 PRICED AS 7125S AT 99589 TO YIELD 7183 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 130 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DSP GROUP INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO AND COWEN & CO KAISER ALUMINUM CORP EIGHT MILLION CONVERTIBLE PREFERRED SHARES PRICED AT 1175 EACH ACCORDING TO THE COMPANY EACH SHARE BEARS A CUMULATIVE ANNUAL DIVIDEND OF 097 THE SHARES ARE SUBJECT TO MANDATORY CONVERSION INTO KAISER COMMON STOCK NO LATER THAN DEC 31 1997 UNDERWRITERS ARE MERRILL LYNCH & CO BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP PAINEWEBBER INC AND SALOMON BROTHERS INC SOFTDESK INC INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1150 EACH ACCORDING TO THE COMPANY HAMBRECHT & QUIST INC AND WESSELS ARNOLD & HENDERSON ARE THE MANAGING UNDERWRITERS FEDERAL NATIONAL MORTGAGE ASSOCIATION 5005 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199441 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 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 199439 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS DEUTSCHE BAU UND BODEN BANK AG GERMANY 200 MILLION MARKS OF FLOATINGRATE EURONOTES DUE MAR 18 1999 AT ISSUE PRICE 10008 VIA DEUTSCHE GENOSSENSCHAFTSBANK PAYABLE SEMIANNUALLY AT 00625 POINT OVER SIXMONTH FRANKFURT INTERBANK OFFERED RATE FEES 02 LESS 002 FOR LEAD MANAGER DRESDNER BANK AG GERMANY 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE MARCH 2004 AT ISSUE AND REOFFER PRICE 999 FOR OWN ACCOUNT WITH LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT SIXMONTH US LONDON INTERBANK OFFERED RATE LESS 025 POINT MINIMUM COUPON 5125 MAXIMUM 8125 FEES 05 HAMBURG GERMANY MUNICIPALITY 50 MILLION MARKS OF BONDS DUE NOV 29 2018 AT ISSUE PRICE 996 VIA MERRILL LYNCH BANK AG BONDS WILL TRADE INTERCHANGEABLY WITH 50 MILLION MARKS OF IDENTICAL BONDS OUTSTANDING TERMS UNCHANGED COUPON 608 FIRST 10 YEARS THEREAFTER 685 PUT OPTION EXERCISABLE ANNUALLY AT PAR AFTER YEAR 10 FEES UNDISCLOSED LLOYDS BANK PLC UK 400 MILLION OF 7375 SURBORDINATED EUROBONDS DUE MAR 11 2004 AT ISSUE PRICE 101213 VIA SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 99663 TO YIELD 7424 A MARGIN OF 72 BASIS POINTS OVER COMPARABLE UK GILT FEES TWO PETROLEOS MEXICANOS SA MEXICO 300 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 8 1999 AT ISSUE AND REOFFER PRICE 9934 VIA JP MORGAN SECURITIES LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS ONE POINT TO YIELD LIBOR PLUS 115 POINT FEES 05 9402140118 940214 WHO'S NEWS MORRISON KNUDSEN CORP MORRISON KNUDSEN CORP BOISE IDAHO THIS ENGINEERING TRANSPORTATION AND CONSTRUCTION CONCERN CREATED AN OFFICE OF THE CHAIRMAN AND NAMED FIVE EXECUTIVES TO SHARE THE POST WILLIAM AGEE 56 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER GUNNAR SARSTEN 57 WHO WILL ALSO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MK INTERNATIONAL THOMAS ZARGES 45 PRESIDENT OF THE COMPANY'S CONSTRUCTION AND ENGINEERING GROUP STEPHEN HANKS 43 EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION AND ROBERT TINSTMAN 47 PRESIDENT OF THE COMPANY'S MINING GROUP 9402140117 940214 DIVIDEND NEWS SOUTHERN UNION CO SOUTHERN UNION CO AUSTIN TEXAS DECLARED A 3FOR2 STOCK SPLIT IN THE FORM OF A 50 STOCK DIVIDEND PAYABLE MARCH 9 TO HOLDERS OF RECORD FEB 23 THE NATURALGAS DISTRIBUTOR ALSO SAID IT WILL IMPLEMENT A 5 ANNUAL STOCK DIVIDEND WITH PAYMENT COINCIDING WITH ITS MAY ANNUAL SHAREHOLDERS' MEETING SOUTHERN SAID IT WILL ANNOUNCE SPECIFICS OF THE DIVIDEND NO LATER THAN THE DATE OF THE SHAREHOLDERS' MEETING 9402140116 940214 INTERNATIONAL BRITISH AEROSPACE SELECTS AMERICAN TO BE CHAIRMAN BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL FOLLOWING RUMORS OF A BOARDROOM FIGHT AND CRITICISM FROM SOME POLITICIANS JOHN CAHILL WILL LEAVE HIS POST AS CHAIRMAN OF BRITISH AEROSPACE PLC MR CAHILL LEAVES THE POSITION AFTER SERVING ONLY TWO YEARS OF A FIVEYEAR CONTRACT IN HIS PLACE BRITISH AEROSPACE APPOINTED AN AMERICAN BOB BAUMAN WHO IS CHIEF EXECUTIVE OF SMITHKLINE BEECHAM PLC MR BAUMAN 62 YEARS OLD PLANS TO LEAVE SMITHKLINE AN ANGLOAMERICAN HEALTHCARE COMPANY IN APRIL WHEN HE WILL MOVE TO HIS NEW POST WHILE A STATEMENT ISSUED LATE FRIDAY BY BRITISH AEROSPACE PORTRAYED MR CAHILL'S EARLY DEPARTURE AS AMICABLE THE UK MEDIA SPECULATED THAT HIS EXIT STEMS FROM A BOARDROOM BATTLE OVER THE FUTURE OF THE COMPANY'S DEFENSE BUSINESS IN ADDITION MR CAHILL HAS COME UNDER ATTACK RECENTLY FROM SOME BRITISH PARLIAMENTARIANS BECAUSE OF HIS GENEROUS CONTRACT AND HIS REFUSAL FOR TAX PURPOSES TO LIVE IN THE UK AN ENGLISHMAN MR CAHILL HAS HOMES IN BOTH FLORIDA AND NEW ENGLAND IN ITS STATEMENT BRITISH AEROSPACE SAID THAT SUBSTANTIAL PROGRESS HAS BEEN MADE IN SEVERAL KEY AREAS OF THE BUSINESS AND THAT THE BOARD AND JOHN CAHILL BELIEVE IT'S AN APPROPRIATE MOMENT FOR HIM TO RELINQUISH THE CHAIRMANSHIP TO ALLOW HIM TO SPEND MORE TIME WITH HIS FAMILY IN THE US HE LEAVES THE COMPANY WITH ABOUT 47 MILLION IN SHARE OPTIONS WHILE MR CAHILL EARNED 800000 A YEAR PLUS OPTIONS MR BAUMAN WILL SERVE ONLY AS NONEXECUTIVE CHAIRMAN AND RECEIVE A SALARY OF 50000 73000 A YEAR PLUS SHARE OPTIONS MR BAUMAN TAKES CHARGE OF A CONGLOMERATE WITH ACTIVITIES IN DEFENSE CIVIL AEROSPACE AND PROPERTY DEVELOPMENT THAT TOGETHER GENERATE ANNUAL SALES OF 6 BILLION THE COMPANY HOWEVER IS UNDERGOING CHANGE TWO WEEKS AGO BRITISH AEROSPACE STUNNED THE MARKETS BY ANNOUNCING THE SALE FOR 800 MILLION OF ITS ROVER AUTOMOBILES UNIT TO GERMANY'S BAYERISCHE MOTOREN WERKE AG THE UK COMPANY HAS ALSO MOVED TO RESTRUCTURE ITS AEROSPACE ACTIVITIES AND IT IS ENJOYING STRONG ORDERS AND RESULTS IN ITS DEFENSE ACTIVITIES THE FACT THAT THE COMPANY'S BOARD GAVE AN AMERICAN THE CONTROLS OF ONE OF THE CROWN JEWELS OF BRITISH INDUSTRY SHOWS THEIR HIGH ESTEEM FOR MR BAUMAN HIS EXTENSIVE RESUME INCLUDES CURRENT POSTS ON THE BOARDS OF CAPITAL CITIES/ABC INC AND REUTERS HOLDINGS PLC HE ALSO SERVED AS CHAIRMAN OF AVCO CORP AN AEROSPACE CONCERN THAT IS A MAJOR ENGINEANDPARTS SUPPLIER TO BRITISH AEROSPACE APPOINTED TO THE CHAIRMAN'S POST AT BEECHAM PLC IN 1986 MR BAUMAN LACKED EXPERIENCE IN PHARMACEUTICALS HOWEVER HE TOOK ADVANTAGE OF HIS OUTSIDER'S STATUS BY BUCKING CONVENTIONAL WISDOM AGREEING TO A TRANSATLANTIC MERGER WITH SMITHKLINE BECKMAN CORP OF THE US MR BAUMAN HAS WORKED HARD TO ESTABLISH GOOD RELATIONS WITH PHARMACEUTICAL INDUSTRY ANALYSTS AND INVESTORS A FACT NOT LOST ON AEROSPACE ANALYSTS WHO PRAISED HIS REPUTATION AT SMITHKLINE 9402140115 940214 BRAZIL'S INFLATION SLOWED SLIGHTLY DURING JANUARY RATES IN MAJOR CITIES SLIP BELOW 40 ECONOMISTS DOUBT DROP WILL LAST BY JOHN WRIGHT SPECIAL TO THE WALL STREET JOURNAL SAO PAULO INFLATION IN BRAZIL'S MAJOR CITIES SLOWED SOMEWHAT IN JANUARY BUT THE RATE REMAINS ALARMINGLY HIGH AND HAS FAR TO DROP BEFORE THE COUNTRY EMERGES FROM ITS DEVASTATING GRIP ECONOMISTS SAY INFLATION IS LOWER SAID FORMER FINANCE MINISTER MAILSON DA NOBREGA BUT IT'S NOT A TREND IT'S MORE A FACTOR OF SEASONAL ADJUSTMENTS ECONOMIST CARLOS LONGO AGREED THERE IS NO REASON FOR INFLATION TO GO AWAY THE FUNDAMENTAL REASONS ARE STILL CAUSING IT THE INFLATION NEWS ON FRIDAY CAME TWO DAYS AFTER CONGRESSIONAL APPROVAL OF AN EMERGENCY FUND TO HELP THE GOVERNMENT BALANCE ITS BUDGET DEFICIT SPENDING IS CONSIDERED THE LEADING CAUSE OF INFLATION AND THE VOTE WAS HAILED AS A MAJOR STEP TOWARD COMBATING IT FEW EXPECTED GOOD NEWS SO SOON THIS WAS A SURPRISE SAID JOSE DE MENEZES BERENGUER NETO VICE PRESIDENT OF CAPITAL MARKETS AT ING BANK IN SAO PAULO WE WERE EXPECTING HIGHER INFLATION THE GOVERNMENT'S NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS SAID THE INFLATION RATE IN SAO PAULO WAS 397 FROM JAN 7 TO FEB 4 DOWN FROM THE 405 REPORTED BETWEEN DEC 30 AND JAN 28 THE INSTITUTE SAID INFLATION IN RIO DE JANEIRO FOR THE CORRESPONDING PERIOD WAS 408 DOWN FROM 428 MEANWHILE THE UNIVERSITY OF SAO PAULO'S ECONOMIC RESEARCH INSTITUTE REPORTED INFLATION AT 385 FROM JAN 8 TO FEB 7 DOWN FROM THE 403 REGISTERED FROM JAN 1 TO 31 ECONOMIST ANTONIO CORREA DE LACERDA SAID THE LOWER RATES ARE CERTAINLY POSITIVE PSYCHOLOGICALLY BUT THEY'RE REALLY A BIT OF A FLUKE ECONOMISTS SAY INFLATION WAS FUELED IN DECEMBER AND JANUARY BY A VARIETY OF SEASONAL CAUSES INCLUDING HOLIDAY BONUSES THAT RESULTED IN HIGHER SPENDING SPECULATION CAUSED BY EXPECTATIONS OF HIGHER INFLATION AND HIGHER FOOD PRICES CAUSED BY A SMALLER HARVEST IN THE ABSENCE OF THOSE FACTORS THE RATE SUBSIDED SOMEWHAT SAID JUAREZ RIZZIERI HEAD OF THE ECONOMIC RESEARCH INSTITUTE BRAZIL IS AVERTING EVEN WORSE INFLATION CONTENDS MR LACERDA THE ECONOMIST BECAUSE OF CONGRESSIONAL PASSAGE OF THE 16 BILLION EMERGENCY FUND LAST WEEK IF IT HADN'T BEEN APPROVED THINGS WOULD BE WORSE THAN EVER HE SAID HE THINKS THAT IF IT HADN'T PASSED FOREIGN MINISTER FERNANDO HENRIQUE CARDOSO PROBABLY WOULD HAVE RESIGNED RESULTING IN ECONOMIC UNCERTAINTY MR CARDOSO INSISTED THAT THE EMERGENCY FUND IS A FUNDAMENTAL STEPPING STONE TO BUILDING AN ECONOMY FREE OF THE INFLATION THAT HAS STEADILY WORSENED FOR A GENERATION MOST ECONOMISTS EXPECT TO SEE INFLATION OVER 41 AGAIN IN MARCH AFTER THE RESERVE VALUE UNIT OR URV IS INSTALLED THE URV WILL REPLACE 11 INFLATION INDEXES THAT ADJUST PRICES WAGES TAXES INTEREST RATES AND CONTRACTS EVERYTHING IN BRAZIL'S ECONOMY IS INDEXED TO ACCOUNT FOR INFLATION A LOT OF COMPANIES WILL RAISE PRICES BECAUSE THEY DON'T KNOW HOW THE URV IS GOING TO WORK ING BANK'S MR BERENGUER SAYS BUT HE ADDS THAT ONCE THE URV AND THE REST OF THE GOVERNMENT'S PLAN ARE IN EFFECT INFLATION COULD DROP SIGNIFICANTLY 9402140114 940214 MARKETING & MEDIA CBS SEALS PACT WORTH 100 MILLION TO TELEVISE SOUTHEASTERN COLLEGE GAMES BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL CBS INC STRUCK A FIVEYEAR DEAL WITH THE SOUTHEASTERN CONFERENCE TO TELEVISE FOOTBALL AND BASKETBALL YIELDING THE CONFERENCE AN ESTIMATED 100 MILLION AND POSSIBLY SETTING OFF A SERIES OF OTHER NETWORK DEALS THAT WILL CHANGE THE TELEVISION LANDSCAPE OF COLLEGE FOOTBALL FOR CBS IT REPRESENTS A STEP TO FILL THE VOID LEFT BY ITS LOSS OF NATIONAL FOOTBALL LEAGUE RIGHTS THERE WAS A BIG IMPACT WHEN CBS LOST PRO FOOTBALL TO FOX AND THEY WERE LOOKING FOR SOMETHING FROM A COLLEGE STANDPOINT SAID MARK WOMACK THE CONFERENCE'S ASSOCIATE COMMISSIONER FOR US IT WILL GREATLY ENHANCE OUR NATIONAL EXPOSURE THE CONFERENCE INCLUDES SUCH FOOTBALL POWERS AS THE UNIVERSITY OF FLORIDA AND AUBURN UNIVERSITY THE CONTRACT'S FOOTBALL PORTION WHICH ACCOUNTS FOR AN ESTIMATED 85 MILLION OF THE TOTAL VALUE DOESN'T TAKE EFFECT UNTIL 1996 BUT IT HAS AN IMMEDIATE IMPACT ON THE COLLEGE FOOTBALL ASSOCIATION OR CFA WHICH SINCE 1984 HAS NEGOTIATED NETWORK TV CONTRACTS ON BEHALF OF 63 MEMBER SCHOOLS THE BOLTING OF THE 12 SOUTHEASTERN CONFERENCE SCHOOLS JEOPARDIZES THE ABILITY OF THE CFA TO KEEP OTHER MEMBERS UNDER ITS UMBRELLA NOW THE OTHER CONFERENCES ARE SAYING GEE WHAT ABOUT ME' SAID DAVID DOWNS AN ABC SPORTS VICE PRESIDENT ABC AND ITS SISTER CABLE NETWORK ESPN CURRENTLY PAY THE CFA ABOUT 60 MILLION A YEAR FOR TV RIGHTS UNDER A CONTRACT EXPIRING IN 1995 THE TWO CAPITAL CITIES/ABC INC UNITS HAD REACHED A TENTATIVE AGREEMENT WITH THE CFA TO EXTEND THEIR PACTS TO 2000 AT A RATE PAYING A COMBINED 70 MILLION A YEAR BUT CBS'S AGREEMENT WITH THE SOUTHEASTERN CONFERENCE WHICH HAS TEAMS ACCOUNTING FOR ABOUT 25 PERCENT OF CFA TELECASTS SCRAPPED THAT ABC AND ESPN MAY NOW WIND UP NEGOTIATING DEALS WITH INDIVIDUAL CONFERENCES WHICH LIKE THE SOUTHEASTERN CONFERENCE THINK THEY CAN DO BETTER FOR THEMSELVES SOME ARE EXPLORING POSSIBLE MERGERS OR ALLIANCES TO INCREASE THEIR TV NEGOTIATING CLOUT THE SOUTHWEST AND BIG EIGHT CONFERENCES ARE CONSIDERED PRIME CANDIDATES FOR AFFILIATION AT THIS POINT WE FEEL IT'S FAIR GAME TO LISTEN TO WHATEVER THE CONFERENCES BRING TO US INDIVIDUALLY ABC'S MR DOWNS SAID BUT WE'LL LISTEN TO THE CFA TOO CBS HAS ALREADY MADE OVERTURES TO THE BIG EAST A REPORTED FIVEYEAR 55 MILLION TO 60 MILLION OFFER TO BROADCAST ITS FOOTBALL GAMES ALSO BEGINNING IN 1996 CBS IS BELIEVED TO BE INTERESTED IN SPLITTING UP SATURDAYAFTERNOON FOOTBALL GAMES REGIONALLY BETWEEN THE SOUTHEASTERN CONFERENCE AND BIG EAST WHICH HAS SEVERAL GLAMOR TEAMS INCLUDING THE UNIVERSITY OF MIAMI CBS WHICH CURRENTLY BROADCASTS BIG EAST BASKETBALL GAMES WOULD ALSO REPORTEDLY PAY THE CONFERENCE ANOTHER 13 MILLION TO EXTEND ITS HOOPS CONTRACT BY SIX YEARS BIG EAST OFFICIALS WOULDN'T COMMENT CBS OFFICIALS ALSO WOULDN'T COMMENT ON THE STATUS OF THE BIG EAST OR THE SOUTHEASTERN CONFERENCE WHOSE AGREEMENT WAS DISCLOSED BY THE CONFERENCE THE CFA MAY MEET WITH REPRESENTATIVES OF CONFERENCES AND TV NETWORKS EARLY THIS WEEK BUT NOTHING FIRM HAS BEEN SET ACCORDING TO A CFA SPOKESMAN IT'S A VERY FLUID SITUATION NOW HE SAID 9402140113 940214 SWISS BANKERS VOICE STRONG OPPOSITION TO TAXING FOREIGN CLIENTS FOR SERVICES BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SWISS BANKERS ARE BATTLING A PROPOSED TAX THEY SAY COULD ENDANGER SWITZERLAND'S PRIVATEBANKING BUSINESS THE BANKERS SAY NONSWISS CUSTOMERS SHOULD BE EXEMPT FROM THE PROPOSED 65 LEVY ON PRIVATEBANKING SERVICES OTHERWISE MANY FOREIGN CLIENTS ARE LIKELY TO SHIFT THEIR INVESTMENT FUNDS TO THE WORLD'S OTHER FINANCIAL CENTERS SWITZERLAND HAS A LOT TO LOSE ITS BANKERS SAY HANS J BAER CHAIRMAN OF BANK JULIUS BAER ESTIMATES THE VALUE OF ASSETS MANAGED BY SWITZERLAND'S BANKS FOR NONSWISS PRIVATE CLIENTS AT 12 TRILLION SWISS FRANCS 8117 BILLION WHICH IS ABOUT A 35 TO 40 SHARE OF THE WORLD'S OFFSHORE PRIVATEBANKING BUSINESS HE SAYS SUCH A PERCENTAGE SHOULD NOT BE JEOPARDIZED MR BAER SAYS BANKERS SAY IT WOULD BE SWITZERLAND'S STANDING AS A FINANCIAL CENTER AND NOT THE COUNTRY'S INTERNATIONAL BANKS THEMSELVES THAT WOULD SUFFER MOST FROM ANY FLIGHT OF FOREIGN CAPITAL THAT MIGHT RESULT FROM THE NEW TAX FOR THEIR PART SWISS BANKS COULD MANAGE CLIENTS' ASSETS THROUGH THEIR FOREIGN SUBSIDIARIES BANKERS SAY THE SWISS BANKERS' ASSOCIATION HAS CALLED FOR AN EXEMPTION FOR PORTFOLIOMANAGEMENT SERVICES FOR CLIENTS RESIDING OUTSIDE SWITZERLAND SAYING A TAX ON SUCH CLIENTS WOULD HAVE FATAL CONSEQUENCES IN A NATIONAL REFERENDUM NOV 28 SWISS VOTERS APPROVED THE INTRODUCTION OF A VALUEADDEDTAX SYSTEM UNDER WHICH THE NATION WILL FOR THE FIRST TIME TAX SERVICES THE NEW STRUCTURE IS EXPECTED TO GO INTO EFFECT JAN 1 1995 AND IS DESIGNED TO CREATE A FAIRER SYSTEM THAT BY INCLUDING SERVICES IS MORE COMPATIBLE WITH TAX POLICIES ELSEWHERE IN EUROPE NATIONS IN THE EUROPEAN UNION OF WHICH SWITZERLAND ISN'T A MEMBER DON'T TAX PORTFOLIOMANAGEMENT SERVICES FOR CUSTOMERS BASED OUTSIDE THE EU THE BANKERS' ASSOCIATION SAYS IN SHORT THERE IS NO VAT IN THE EU ON SERVICES TO CLIENTS BASED IN THE AMERICAS ASIA AFRICA THE MIDDLE EAST OR EUROPEAN COUNTRIES OUTSIDE THE TRADING BLOC SEEKING A SIMILAR ARRANGEMENT SWITZERLAND'S BANKERS WHILE NOT CHALLENGING THE PROPOSED VAT LEVY ON SERVICES TO DOMESTIC CUSTOMERS STRONGLY OPPOSE THE INCLUSION OF CLIENTS BASED ABROAD IF SWITZERLAND IMPOSES A TAX ON THOSE CLIENTS THE ASSOCIATION SAYS IT IS TO BE EXPECTED THAT A CONSIDERABLE NUMBER OF FOREIGN PRIVATE CLIENTS WILL NOT ACCEPT THE NEW TAX AND WILL GIVE THEIR ASSETS TO A BANK OUTSIDE SWITZERLAND TO MANAGE FRANCOIS GENDRE ASSISTANT DIRECTOR IN THE FEDERAL TAX DEPARTMENT SAYS HIS AGENCY IS WELL AWARE OF THE PROBLEM BUT A DECISION ON EXEMPTING SERVICES TO FOREIGN CLIENTS CAN BE MADE ONLY BY THE FEDERAL COUNCIL THE GROUP OF SEVEN MINISTERS THAT GOVERNS SWITZERLAND AN ANSWER CAN BE EXPECTED BEFORE SUMMER HE ADDED MEANWHILE SAYS BENEDICT HENTSCH PARTNER AT GENEVAN PRIVATE BANKER DARIER HENTSCH & CIE WE ARE DOING OUR BEST TO PERSUADE THE GOVERNMENT THAT DECIDING OUR WAY WOULD BE IN THE BEST INTERESTS OF SWITZERLAND 9402140112 940214 POLITICS & POLICY PENTAGON CONSIDERS SELLING OVERSEAS A LARGE PART OF HIGHTECH WEAPONRY BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENIOR PENTAGON OFFICIALS ARE CONTEMPLATING SELLING OVERSEAS A LARGE PART OF THE MILITARY'S COLD WAR INVENTORY OF HIGHPERFORMANCE WEAPONRY THEY ARGUE THAT THE NEW APPROACH WOULD STRENGTHEN US ALLIES IMPROVE US MILITARY READINESS AND HELP SUSTAIN THE US DEFENSE INDUSTRY ALL WITHOUT COSTING THE TAXPAYER A PENNY BUT IF IMPLEMENTED THE NEW POLICY WOULD PROVOKE CHARGES THAT THE US IS CONTRIBUTING TO THE PROLIFERATION OF HIGHTECH WEAPONS USING POORER COUNTRIES TO SUPPORT ITS DEFENSE BUDGET AND PERHAPS SPARKING ARMS RACES IN NEW REGIONS SUCH AS SOUTH AMERICA SEVERAL NATIONS ON THAT CONTINENT AS WELL AS IN SOUTHEAST ASIA AND NORTH AFRICA ARE BEING LOOKED AT AS POTENTIAL BUYERS UNDER THE PROGRAM UNDER THE CONTEMPLATED PLAN THE PENTAGON RATHER THAN MOTHBALL PART OF THE INVENTORY OF JETS SHIPS AND ARMORED VEHICLES WOULD SELL IT OVERSEAS AND USE THE PROCEEDS TO BUY NEWER VERSIONS OF THE SAME WEAPONS THE SIZE OF THE POTENTIAL SALES IS HUGE THE FIRST STEP IN THE PROGRAM A KIND OF TEST RUN WOULD INVOLVE SELLING 400 OF THE AIR FORCE'S F16 FIGHTERS FOR ABOUT 48 BILLION THIS ISN'T A STRATEGY TO GET RID OF OLDER EXCESS STUFF IT'S SOME OF OUR BEST STUFF THAT WOULD BE SOLD GEN MICHAEL CARNS THE VICE CHIEF OF STAFF OF THE AIR FORCE AND THE LEADING PROPONENT OF THE IDEA SAID IN AN INTERVIEW IT IS TO BUILD UP OUR ALLIES GET THEM TO DO SOME OF THE HEAVY LIFTING AND TO USE THE PROCEEDS TO HELP OUR OWN MODERNIZATION AT A LEVEL WE CURRENTLY CAN'T AFFORD THE PROPOSAL ALREADY HAS RECEIVED A POSITIVE RESPONSE FROM DEFENSE SECRETARY WILLIAM PERRY FROM THE STATE DEPARTMENT AND FROM SOME IN THE DEFENSE INDUSTRY GEN CARNS SAID THE PLAN WOULDN'T REQUIRE LEGISLATIVE CHANGES BUT WOULD CLEARLY NEED THE EXPLICIT BACKING OF THE ADMINISTRATION AND CONGRESS CONGRESSIONAL APPROVAL WOULD BE NEEDED FOR THE ARMS SALES AND FOR THE PENTAGON TO SPEND THE PROCEEDS THE PENTAGON HAS OCCASIONALLY CONDUCTED HIGHTECH SALES OF THIS SORT IN THE PAST MOST NOTABLY IN A 1991 AIR FORCE SALE OF 24 F15CS TO SAUDI ARABIA THAT ENABLED THE AIR FORCE TO BUY SIX STATEOFTHEART F15ES BUT GENERALLY THE PENTAGON HAS SOLD OFF ITS OLDEST AND LEASTVALUED GEAR DISCUSSING THE FIRST STEPS IN THE PROGRAM GEN CARNS A FORMER FIGHTER PILOT WHO HOLDS A MASTER'S DEGREE FROM HARVARD BUSINESS SCHOOL ESTIMATED THAT EACH OF THE 400 F16S COULD BE SOLD FOR 12 MILLION AFTER BEING UPGRADED THE MODIFICATIONS TO THEIR ENGINES STRUCTURE AND COCKPITS WOULD COST ROUGHLY 2 BILLION LEAVING THE AIR FORCE MORE THAN 2 BILLION TO BUY 70 TO 100 NEW F16S UNDER THE PLAN THESE WOULD BE USED IN THE LATE 1990S TO REPLACE RETIRING F111S GEN CARNS SAID THE BASIC FLYAWAY COST OF A NEW F16 CURRENTLY RUNS ABOUT 20 MILLION FOREIGN CUSTOMERS TYPICALLY PAY SEVERAL MILLION DOLLARS MORE FOR SPECIAL WEAPONRY PARTS AND SUPPORT COSTS A LOCKHEED SPOKESMAN SAID IT GIVES ME BRANDNEW WARFIGHTING AIRPLANES AT NO COST TO THE TAXPAYER GEN CARNS SAID ON A LARGE ENOUGH SCALE SALES OF THIS SORT WOULD HELP THE PENTAGON GET THROUGH THE PROCUREMENT SQUEEZE THAT FINANCIAL ANALYSTS PREDICT FOR THE LATE 1990S THE PENTAGON'S OFFICIAL ESTIMATE IS THAT FROM FISCAL 1996 THROUGH FISCAL 1999 ITS COSTS WILL BE 20 BILLION HIGHER THAN THE BUDGETS PLANNED FOR THAT PERIOD THE DEFENSE INDUSTRY WHICH HAS OBJECTED IN THE PAST TO SOME PENTAGON SELLOFFS OF OLDER INVENTORY WILL SUPPORT THIS PLAN BECAUSE THE SALES ULTIMATELY WOULD PRODUCE NEW WORK FOR IT THE GENERAL ARGUED FIRST HE SAID THE INDUSTRY WOULD BE ABLE TO UPGRADE THE GEAR TO PREPARE IT FOR MARKETS THAT IT MIGHT NOT OTHERWISE PENETRATE THEN WHEN THE PENTAGON HAD THE CASH IN HAND THE INDUSTRY WOULD RECEIVE NEW ORDERS DWAIN MAYFIELD VICE PRESIDENT MARKETING OF LOCKHEED CORP'S FORT WORTH TEXAS UNIT WHICH MAKES THE F16 AGREED WITH THAT ASSESSMENT SAYING WE'VE BEEN NEEDING SOMETHING LIKE THIS IT'S AN INNOVATIVE PLAN MR MAYFIELD WHO WAS BRIEFED ON THE PENTAGON PLAN LAST WEEK ADDED I THINK IT WILL HAPPEN THERE ARE TOO MANY UPSIDES TO THE PLAN FOR IT NOT TO HAPPEN OTHER ADVANCED AIRCRAFT THAT COULD BE SOLD UNDER THE PLAN GEN CARNS SAID ARE BOEING CO'S KC135 TANKERS AND LOCKHEED'S C130 CARGO PLANES IN ADDITION HE SAID THE ARMY PROBABLY COULD PURSUE SIMILAR PLANS WITH ITS BEST TANKS AND ARMORED PERSONNEL CARRIERS WHEN ASKED ABOUT THE POSSIBLE NEW POLICY THOMAS CARDAMONE JR EDITOR OF ARMS TRADE NEWS CALLED IT A SHORTSIGHTED VERY CASHFLOWORIENTED APPROACH IT CREATES INSTABILITY AND SUCKS CAPITAL AWAY FROM INFRASTRUCTURE HE SAID IT MAKES BAD FOREIGN POLICY ANYTIME A COUNTRY BUYS A HIGHTECH AIRCRAFT LIKE THE F16 IT MAKES THEIR NEIGHBORS NERVOUS ARMS TRADE NEWS IS PUBLISHED BY THE COUNCIL FOR A LIVEABLE WORLD WHICH ADVOCATES CUTTING THE US DEFENSE BUDGET BUT GEN CARNS DISMISSED THOSE CONCERNS SAYING WE ARE WORKING WITH COALITION PARTNERS WHO SHARE OUR VALUES WE AREN'T PROLIFERATING ANYTHING THEY WOULDN'T OTHERWISE BUY AMONG THE COUNTRIES THAT ARE BEING CONTEMPLATED AS POTENTIAL BUYERS OF THE F16S INDUSTRY AND PENTAGON OFFICIALS SAID ARE THAILAND SINGAPORE EGYPT AND SOUTH KOREA WHICH ALREADY POSSESS SOME AS WELL AS INDONESIA MALAYSIA NEW ZEALAND MOROCCO AND TUNISIA WHICH DON'T IN ADDITION CHILE IS BELIEVED TO BE EAGER TO BUY F16S BUT IF IT DID ARGENTINA MIGHT WANT SOME WHICH WOULD DRAW OBJECTIONS FROM THE BRITISH BECAUSE OF THE CONTINUING DISPUTE OVER THE FALKLAND ISLANDS THE PHILIPPINES IS BELIEVED TO BE INTERESTED BUT PENTAGON OFFICIALS PRIVATELY DOUBT THAT THE ISLAND NATION NEEDS HIGHPERFORMANCE AIRCRAFT IN ADDITION TO MAKING FINANCIAL SENSE GEN CARNS ARGUED THE INVENTORY SELLOFF MAKES SOUND MILITARY AND NATIONAL STRATEGY THE EXPERIENCE OF THE PERSIAN GULF WAR HE SAID WAS THAT THE US'S COALITION PARTNERS LACKED THE HARDWARE TO PERFORM MANY IMPORTANT MISSIONS SUCH AS ACHIEVING AIR SUPERIORITY OR PROVIDING AIRLIFT COALITION WARFARE IS HERE TO STAY HE SAID WE OUGHT TO ENABLE SOME OF OUR POTENTIAL COALITION ALLIES TO PARTICIPATE IN A ROBUST WAY HAVING ALLIES USE USMADE EQUIPMENT ALSO WOULD MAKE IT EASIER FOR US FORCES TO OPERATE WITH THEM AND TO USE THEIR INFRASTRUCTURE WHEN DEPLOYED ABROAD THAT WOULD PARTIALLY COMPENSATE FOR THE LOSS OF ACCESS AND PRESENCE RESULTING FROM THE REDUCTION OF US FORCES DEPLOYED OVERSEAS HE SAID 9402140111 940214 WHO'S NEWS CALPERS IN A SHOW OF CLOUT TARGETS FOR OUSTER THE CHAIRMAN OF CATELLUS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO VERNON B SCHWARTZ MAY SOON BECOME ANOTHER CASUALTY OF A CAMPAIGN BY CALIFORNIA'S STATE EMPLOYEE PENSION PLAN TO EXERT ITS INFLUENCE IN US EXECUTIVE SUITES MR SCHWARTZ CHAIRMAN AND CHIEF EXECUTIVE OF CATELLUS DEVELOPMENT CORP A BIG REAL ESTATE CONCERN IS EXPECTED TO STEP DOWN SOON AS A RESULT OF BOARD OPPOSITION LED BY THE PENSION PLAN KNOWN AS CALPERS ACCORDING TO DIRECTORS AND OTHERS FAMILIAR WITH THE COMPANY CALPERS THE NATION'S BIGGEST STATE EMPLOYEE PENSION PLAN WITH ASSETS TOTALING ABOUT 80 BILLION OWNS 40 OF CATELLUS AND DIRECTLY CONTROLS TWO SEATS ON ITS BOARD MR SCHWARTZ DECLINED TO COMMENT AS DID CALPERS OFFICALS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY CATELLUS DIRECTORS VOTED TO OUST MR SCHWARTZ AT A MEETING EARLIER THIS MONTH THE DIRECTORS LATER AGREED TO A PROPOSAL FROM MR SCHWARTZ THAT HE BE GIVEN A FEW MONTHS TO PHASE HIMSELF OUT OF THE COMPANY CATELLUS DIRECTORS SAID MUCH OF THE OPPOSITION TO MR SCHWARTZ WAS LED BY TOM C STICKEL A FORMER FINANCIAL EXECUTIVE NOMINATED TO THE BOARD BY CALPERS EARLY LAST YEAR ALTHOUGH MR STICKEL DECLINED TO COMMENT PEOPLE CLOSE TO THE BOARD SAID THAT SHORTLY AFTER BECOMING A DIRECTOR MR STICKEL BEGAN OPENLY OPPOSING MR SCHWARTZ'S STRATEGIES FOR TURNING AROUND THE REALESTATE CONCERN WHICH HAD A NET LOSS OF 344 MILLION FOR THE NINE MONTHS ENDED SEPT 30 MORE RECENTLY OPPOSITION TO MR SCHWARTZ HAS BEEN SPEARHEADED BY TWO OTHER DIRECTORS BOTH EXECUTIVES OF CHICAGOBASED JMB REALTY CORP JMB REALTY HAS A CONTRACT WITH CALPERS TO REPRESENT THE PENSION PLAN'S INTERESTS BEFORE THE BOARD CALPERS BOUGHT ITS STAKE IN CATELLUS IN 1989 THE STAKE'S VALUE HAS SLIPPED STEADILY IN RECENT YEARS AS THE REAL ESTATE BUST HAMMERED CATELLUS'S PORTFOLIO OF OFFICE BUILDINGS AND LAND CATELLUS STOCK WHICH TRADED AS HIGH AS 15 A SHARE IN EARLY 1991 CLOSED FRIDAY AT 8 UNCHANGED ON THE NEW YORK STOCK EXCHANGE ON JAN 14 WILLIAM D CRIST PRESIDENT OF CALPERS'S ADMINISTRATIVE BOARD SENT A LETTER TO CATELLUS BOARD MEMBERS QUESTIONING THE COMPANY'S OPERATIONS AND MANAGEMENT HE ASKED DIRECTORS TO INDEPENDENTLY REVIEW THE COMPANY AND TAKE ACTION AS NECESSARY TO ACCOMPLISH CHANGES CHANGES AT GM KODAK IBM IF MR SCWHARTZ DOES DEPART HE WILL BECOME THE LATEST IN A STRING OF HIGHPROFILE EXECUTIVES TO BE PUSHED OUT AFTER OPPOSITION FROM CALPERS IN RECENT YEARS CALPERS HAS BEEN ENGAGED IN A CORPORATE GOVERNANCE PROGRAM USING ITS INVESTMENT CLOUT TO CHALLENGE MANAGEMENT OF COMPANIES THAT IT PERCEIVES AS UNDERPERFORMING PRESSURE FROM CALPERS WHICH USUALLY OWNS MUCH SMALLER STAKES THAN ITS 40 CATELLUS HOLDING CONTRIBUTED TO THE DEPARTURES OF CHIEF EXECUTIVES AT GENERAL MOTORS CORP EASTMAN KODAK CO AND INTERNATIONAL BUSINESS MACHINES CO AMONG OTHERS THIS SPRING CALPERS IS PLANNING PROXY FIGHTS AT BOISE CASCADE CORP AND US SHOE CO 9402140110 940214 BUSINESS BRIEF OLYMPUS CAPITAL CORP SUITOR PROPOSES ACQUISITION THROUGH EXCHANGE OF STOCK OLYMPUS CAPITAL CORP PARENT COMPANY OF OLYMPUS BANK SAID IT RECEIVED A PRELIMINARY INDICATION OF INTEREST TO BE ACQUIRED BY A FINANCIAL INSTITUTION THROUGH AN EXCHANGE OF STOCK OLYMPUS SAID THAT AS OF FRIDAY THE VALUATION OF THE PROPOSED EXCHANGE WOULD BE BELOW THE COMPANY'S RECENT TRADING PRICES IN NASDAQ STOCK MARKET TRADING FRIDAY OLYMPUS CLOSED AT 1450 A SHARE DOWN 125 OLYMPUS AND ITS ADVISER GOLDMAN SACHS & CO ARE PURSUING DISCUSSIONS WITH THE POTENTIAL SUITOR BUT THE COMPANY SAID THERE ISN'T ANY ASSURANCE A TRANSACTION WILL RESULT OLYMPUS SALT LAKE CITY HAS ABOUT 31 MILLION SHARES OUTSTANDING COMPANY OFFICIALS DIDN'T IMMEDIATELY RETURN PHONE CALLS SEEKING ADDITIONAL COMMENT 9402140108 940214 TECHNOLOGY CARDIAC SCIENCE SUSPENDS OPERATIONS AS MULTIMILLION DOLLAR DEAL COLLAPSES BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL CARDIAC SCIENCE INC A TINY MEDICAL RESEARCH CONCERN WITH TIES TO STOCKBROKER RAFI KHAN AND HIS MONEYMANAGER CLIENTS SUSPENDED OPERATIONS FRIDAY AFTER A MULTIMILLION DOLLAR FINANCING DEAL COLLAPSED THE IRVINE CALIF CONCERN ISSUED A STATEMENT SAYING IT HAS TEMPORARILY SUBSTANTIALLY CURTAILED OPERATIONS DUE TO LACK OF FUNDS SEVERAL EMPLOYEES HAVE AGREED TO STAY ON BUT NOBODY IS GETTING PAID SAID HOWARD K COOPER PRESIDENT AND CHIEF EXECUTIVE OFFICER THE ANNOUNCEMENT CAME AFTER CARDIAC SCIENCE SAID AN INVESTMENT FIRM DECIDED NOT TO PROCEED WITH PLANS FOR AN UNDERWRITING OF CARDIAC SCIENCE SHARES THE UNDERWRITER WHICH MR COOPER DECLINED TO IDENTIFY HAD TENTATIVELY AGREED TO REPLACE BEVERLY HILLS CALIFBASED REYNOLDS KENDRICK STRATTON INC WHICH DROPPED A PLANNED OFFERING LAST OCTOBER AFTER MR KHAN LEFT THE FIRM CARDIAC SCIENCE WHICH WENT PUBLIC IN JULY 1991 HAD HOPED TO RAISE UP TO 8 MILLION THROUGH RKS THE COMPANY DIDN'T SAY HOW MUCH IT SOUGHT IN THE OFFERING WITH RKS'S REPLACEMENT IT WAS THE LATEST BLOW FOR CARDIAC SCIENCE THRUST INTO THE SPOTLIGHT BECAUSE OF ITS BACKING BY MR KHAN AND HIS CLIENTS WHO BOUGHT THE BULK OF THE COMPANY'S SECURITIES SOLD ABOUT A YEAR AGO IN A 12 MILLION PRIVATE PLACEMENT AMONG THE BUYERS FOR HIS PERSONAL ACCOUNT WAS MONEY MANAGER JOHN KAWESKE WHOSE ALLEGED FAILURE TO PROPERLY REPORT CERTAIN PERSONAL STOCK TRADES LED TO HIS DISMISSAL LAST MONTH BY DENVERBASED INVESCO FUNDS GROUP AN INDIVIDUAL CLOSE TO CARDIAC SCIENCE SAID THE UNDERWRITER RAS SECURITIES NEW YORK GOT COLD FEET BECAUSE OF ALL THE ADVERSE PUBLICITY AND A RELATED SECURITIES AND EXCHANGE COMMISSION PROBE INTO FUND MANAGERS' PERSONAL TRADING RAS SECURITIES BEST KNOWN FOR ITS RESEARCH DIRECTOR RAY DIRKS COULDN'T BE REACHED OVER THE WEEKEND MR COOPER SAID THE UNDERWRITER'S REPRESENTATIVES TOLD HIM THAT THE DECISION WAS BASED ON MARKET CONDITIONS AND OTHER FINANCING CONSIDERATIONS CARDIAC SCIENCE HE SAID IS STILL HOPING TO OBTAIN PRIVATE FINANCING THROUGH THE FIRM OR OTHER FUNDING GROUPS BEFORE MR KHAN'S ABRUPT RESIGNATION FROM REYNOLDS KENDRICK STRATTON IN OCTOBER HE ACCOMPANIED MR COOPER ON A PROMOTIONAL ROAD SHOW THAT BEGAN IN THE MIDDLE EAST AND INCLUDED STOPS IN SWITZERLAND FRANCE ENGLAND AND MANY US CITIES WE COMPLETED THE ROAD SHOW IN LOS ANGELES AND TWO DAYS LATER RAFI RESIGNED MR COOPER SAID MR COOPER SAID HE IS UPSET BUT BEARS NO ILL WILL TOWARD MR KHAN REACHED AT HIS HOME OFFICE IN LA CANADA CALIF MR KHAN DECLINED TO COMMENT THE STOCKBROKER RECENTLY LOST A PROXY FIGHT TO OUST THE MANAGEMENT OF ICN PHARMACEUTICALS INC A COSTA MESA CALIF DRUG MAKER MR COOPER WAS A DIRECTOR ON MR KHAN'S SLATE CARDIAC SCIENCE IS TRYING TO RAISE MONEY TO CONTINUE TESTING A BEDSIDE DEVICE DESIGNED TO STOP VENTRICULAR ARRHYTHMIAS THAT LEAD TO SUDDEN CARDIAC DEATH ONE OF THE LEADING CAUSES OF DEATH IN THE US AND OTHER COUNTRIES THE ANNOUNCEMENT CAME LATE FRIDAY WELL AFTER THE UNUSUALLY EARLY CLOSE OF NEW YORK MARKETS 9402140107 940214 CORPORATE FOCUS VIDEOGAME LEADERS DIVERGE ON MULTIMEDIA'S FUTURE NINTENDO TIGHTENS FOCUS ON CURRENT MARKET SEGA BROADENS PRODUCT RANGE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL KYOTO JAPAN THE WORLD'S LARGEST MULTIMEDIA COMPANY DOESN'T BELIEVE IN THE MULTIMEDIA FUTURE MULTIMEDIA IS JUST A WORD AND THAT WORD IS RUNNING AHEAD OF THE SUBSTANCE HUFFS HIROSHI YAMAUCHI PRESIDENT OF VIDEOGAME MAKER NINTENDO CO LET OTHERS SPIN FANCY DREAMS OF THE INFORMATION HIGHWAY HE SAYS NINTENDO WILL CONCENTRATE ON JUST ONE POINT IMPROVING THE QUALITY OF GAMES IN THE CURRENT MARKET SEGA ENTERPRISES LTD COULDN'T DISAGREE MORE NINTENDO'S ARCHRIVAL BELIEVES MULTIMEDIA WILL LEAD TO A TECTONIC SHIFT IN SOCIETY PRESIDENT HAYAO NAKAYAMA SAYS SEGA IS PLANNING CABLETV VIDEOGAME CHANNELS AND HIGHTECH THEME PARKS WITH MORE MULTIMEDIA PRODUCTS TO COME MR NAKAYAMA SAYS I DON'T CONSIDER NINTENDO OUR COMPETITOR ANYMORE NINTENDO AND SEGA THE TWO COMPANIES THAT SO FAR HAVE DONE THE MOST TO CREATE THE MULTIMEDIA MARKET ARE BETTING THEIR FUTURES ON VERY DIFFERENT VISIONS OF WHAT IT WILL LOOK LIKE AND HOW THEY CAN PROFIT FROM IT THEIR STORY IS A PARABLE OF TWO SEEMINGLY SIMILAR COMPANIES BOTH DOMINANT IN THEIR INDUSTRY FORCED TO CHOOSE BETWEEN RADICAL CHANGE AND THE STATUS QUO AS THE GROUND STARTS SHIFTING UNDER THEIR FEET UP TO NOW THE COMPANIES HAVE FOLLOWED NEARLY IDENTICAL STRATEGIES WHILE OTHER JAPANESE ELECTRONICS MAKERS COMPETED FOR EVERNARROWING MARGINS ON HARDWARE SEGA AND NINTENDO CONCENTRATED ON SOFTWARE THANKS TO MUSHROOMING GAME SALES AND THE STIFF LICENSING FEES BOTH COMPANIES CHARGE TO THIRDPARTY DEVELOPERS THE COMPANIES HAVE MADE BIG BUCKS FROM SOFTWARE WHILE SELLING THEIR GAME COMPUTERS AT VIRTUALLY NO PROFIT SEGA HAS MORE THAN TRIPLED ITS CONSOLIDATED SALES IN JUST TWO YEARS WHILE MUCHLARGER NINTENDO MANAGED 34 GROWTH OVER THE SAME PERIOD BOTH COMPANIES ALSO HAVE BEEN ENORMOUSLY PROFITABLE NOW HOWEVER THE CASHCOW GAME BUSINESS IS DRYING UP NINTENDO'S PARENT PRETAX PROFIT WHICH EXCLUDES RESULTS FROM OVERSEAS SUBSIDIARIES FELL 24 IN THE SIX MONTHS ENDED SEPT 30 THE FIRST DECLINE SINCE 1984 SEGA MEANWHILE SAW ITS UNCONSOLIDATED SALES OVER THE SAME PERIOD RISE JUST 20 MUCH SLOWER THAN ITS 91 SALES GROWTH A YEAR EARLIER BOTH COMPANIES BLAME SOFT SALES IN EUROPE AND THE JAPANESE CURRENCY'S STRENGTH WHICH REDUCES THE YEN VALUE OF OVERSEAS SALES DENOMINATED IN OTHER CURRENCIES EVEN SO SEGA'S DOLLARDENOMINATED SALES OF VIDEOGAME PLAYERS HAVE SURGED IN THE US SCORING A VICTORY OVER NINTENDO SEGA CAPTURED TWOTHIRDS OF THE MOST CRUCIAL SEGMENT OF THE US MARKET FOR VIDEOGAME PLAYERS DURING THE HOLIDAY SEASON THE 15 BILLION GAME MARKET ALSO IS CHANGING IN MOREFUNDAMENTAL WAYS NEW COMPETITORS HAVE FLOODED IN BY THE END OF THIS YEAR NINTENDO AND SEGA WILL HAVE TO CONTEND NOT JUST WITH EACH OTHER BUT ALSO WITH A RESURRECTED ATARI CORP AND CONSUMERELECTRONICS GIANTS SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO SONY AND MATSUSHITA POSE A SPECIAL THREAT BECAUSE BOTH OWN HOLLYWOOD STUDIOS AN INHOUSE SOURCE OF SOFTWARE MORE SIGNIFICANTLY THE NEWCOMERS HAVE STARTED WOOING THIRDPARTY SOFTWARE HOUSES TO WRITE GAMES FOR THEIR MACHINES THE MARGINS FOR NINTENDO AND SEGA WILL NARROW SAYS JOSEPH OSHA AN ANALYST WITH BARING SECURITIES JAPAN LTD NINTENDO AND SEGA HAVE PREPARED THE OBVIOUS COUNTERATTACK POWERFUL NEW GAME MACHINES THAT WILL OFFER THREEDIMENSIONAL MOTION AND DIGITIZED VIDEO CLIPS NINTENDO WHICH HAS PREFERRED SOLO WORK IS DEVELOPING A MACHINE CODENAMED PROJECT REALITY WITH SILICON GRAPHICS INC FOR RELEASE IN MID1995 SEGA MEANWHILE HAS TURNED TO HITACHI LTD AND MUSICALINSTRUMENT MAKER YAMAHA CORP FOR HELP WITH ITS SATURN GAME MACHINE WHICH IT INTENDS TO RELEASE LATE THIS YEAR NINTENDO HOWEVER HAS STOPPED THERE WHILE SEGA HAS TURNED OUTWARD TO FIND FUTURE MULTIMEDIA MARKETS WE WANT TO BE A LEADER IN INTERACTIVE ENTERTAINMENT BOTH IN THE HOME AND OUTSIDE THE HOME SAYS TOM KALINSKE PRESIDENT OF SEGA'S US UNIT ACT ONE OPENS LATER THIS YEAR WHEN TIME WARNER INC AND TELECOMMUNICATIONS INC START TESTMARKETING A NEW SERVICE CALLED THE SEGA CHANNEL IN THE US SUBSCRIBERS WHO BUY OR RENT SPECIAL HARDWARE WILL BE ABLE TO DOWNLOAD SONIC THE HEDGEHOG OR ANY OF 50 OTHER SEGA VIDEO GAMES FROM THEIR CABLE SYSTEM THE SEGA CHANNEL IS MUCH MORE THAN A WAY OF DISTRIBUTING GAMES ELECTRONICALLY IT'S A MARKETING TOOL SEGA INTENDS TO WITHHOLD NEW GAMES FROM THE SYSTEM'S EVERCHANGING LIBRARY INSTEAD OFFERING THEM ONLY AS TRUNCATED PREVIEWS WHERE PLAYERS CAN PLAY ONLY ONE OR TWO LEVELS ONLY WHEN THE RETAIL MARKET FOR THOSE GAMES HAS BEEN SATURATED WILL SEGA RELEASE THEIR FULL VERSIONS VIA CABLE SEGA EXPECTS TWO MILLION SUBSCRIBERS BY 1996 A FIGURE MANY ANALYSTS FIND CREDIBLE WITHIN A FEW YEARS SEGA HOPES TO HAVE GAINED ENOUGH EXPERIENCE IN THE CABLE MARKET TO PITCH THE SATURN AS THE HARDWARE NEEDED FOR TAPPING INTO FUTURE INTERACTIVE CABLETELEVISION SYSTEMS SEGA ISN'T WORRIED ABOUT LIKELY COMPETITORS SUCH AS GENERAL INSTRUMENT CORP AND SCIENTIFICATLANTA INC HE WHO GETS THERE FIRST HAS A BIG LEG UP MR KALINSKE SAYS BY THE TIME INTERACTIVE CABLE SYSTEMS FOR GENERAL USE ARE STARTING UP WE'LL BE SEVERAL MILLION USERS AHEAD OF THE OTHER GUYS ACT TWO BEGINS IN MARCH IN OSAKA WHEN SEGA OPENS ITS FIRST HIGHTECH THEME PARK A CROSS BETWEEN A TRADITIONAL AMUSEMENT PARK AND THE UPSCALE VIDEO ARCADES SEGA ALREADY RUNS YOU CAN DRIVE A FORMULA ONE CAR OR RIDE THE SPACE SHUTTLE IN THE PARK'S VIRTUAL REALITY ATTRACTIONS SEGA EXECUTIVE VICE PRESIDENT SHOICHIRO IRIMAJIRI SAYS IN VIRTUAL LAND YOU CAN REALIZE YOUR DREAMS EACH PARK WILL COST AS MUCH AS FIVE BILLION YEN TO SEVEN BILLION YEN 46 MILLION TO 65 MILLION TO DEVELOP SEGA IS PLANNING A SIMILAR ALTHOUGH SMALLER PARK WITH MATSUSHITA'S MCA UNIT IN LOS ANGELES NINTENDO'S COMPARATIVELY PASSIVE STRATEGY IS PARTICULARLY STRIKING GIVEN THE COMPANY'S EARLIER ATTEMPTS TO CAPITALIZE ON ITS HUGE INSTALLED BASE OF GAME COMPUTERS IT TRIED AN INTERACTIVE TELEVISION NETWORK IN THE LATE 1980S THROUGH WHICH FAMILIES COULD BUY AND SELL SECURITIES OR BET ON HORSE RACES THROUGH THEIR GAME MACHINES THE NETWORK STALLED IN JAPAN AND NEVER WAS ROLLED OUT IN THE US NOW COMPANY EXECUTIVES HEAP SCORN ON SEGA'S PLANS AND INSIST THAT THEIR NEW GAME MACHINE WILL USHER IN THE MULTIMEDIA FUTURE BY ITSELF WHEN CRITICS ARGUE THAT THE ACTUAL PERFORMANCE OF NINTENDO'S NEW MACHINE ISN'T LIKELY TO BE MUCH GREATER THAN THOSE FROM ITS COMPETITORS MR YAMAUCHI DISMISSES THEM AS NAIVE AND IGNORANT OF THE VIDEOGAME MARKET HE HAS SIMILAR WORDS FOR THOSE READY TO WRITE OFF NINTENDO WHICH HAS A CASH RESERVE OF NEARLY 3 BILLION NINTENDO'S MOVEMENT IS ALWAYS VERY SLOW TO OUTSIDERS CHANGE JUST TAKES TIME HE SAYS IF PEOPLE CLAIM WE ARE TOO SLOW IT JUST SHOWS THEY'RE IGNORANT 9402140106 940214 DEUTSCHE BABCOCK AG SETS PREFERRED DIVIDEND SPECIAL TO THE WALL STREET JOURNAL OBERHAUSEN GERMANY MACHINERY AND PLANTENGINEERING GROUP DEUTSCHE BABCOCK AG SAID IT WILL PAY AN UNCHANGED DIVIDEND OF THREE MARKS 171 A PREFERRED SHARE FOR THE FISCAL YEAR ENDED SEPT 30 THE COMPANY HASN'T PAID A DIVIDEND ON COMMON SHARES SINCE FISCAL 1988 LAST YEAR BABCOCK PAID THE PREFERREDSHARE DIVIDENDS IT MISSED IN FISCAL 1990 AND 1991 THE PAYMENT OF THE MISSED DIVIDENDS ON THE PREFERRED SHARES IS A PRECONDITION FOR THE RESUMPTION OF THE COMMONSTOCK DIVIDEND WHICH WAS FIVE MARKS IN 1988 DEUTSCHE BABCOCK ALSO REPORTED PRETAX PROFIT FOR THE FISCAL YEAR FELL 50 TO 62 MILLION MARKS 354 MILLION FROM 124 MILLION MARKS IN FISCAL 1992 IN DECEMBER DEUTSCHE BABCOCK TOLD ITS EMPLOYEES PRETAX EARNINGS FELL TO AROUND 60 MILLION MARKS WHILE SALES ROSE 79 TO 82 BILLION MARKS OPERATING PROFIT DIDN'T WORSEN IN THE LATEST YEAR A COMPANY SPOKESMAN SAID INSTEAD THE DECLINE IN PRETAX PROFIT WAS DUE TO EXTRAORDINARY ITEMS IN FISCAL 1992 THE SALE OF REAL ESTATE INFLATED DEUTSCHE BABCOCK'S EARNINGS WHILE EARNINGS IN FISCAL 1993 WERE HIT BY ONETIME EXPENSES RELATED TO RESTRUCTURING AND LAYOFFS HE SAID THE COMPANY WON'T RELEASE FURTHER DETAILS ON FISCAL 1993 UNTIL ITS ANNUAL EARNINGS NEWS CONFERENCE MAY 12 THE SPOKESMAN SAID 9402140105 940214 EDUCATION CONSTRUCTION 101 BUSINESS SCHOOLS PLAN BUILDING BOOM BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL AT MANY BUSINESS SCHOOLS DEMAND FOR MBA AND OTHER DEGREES IS GOING DOWN SO NATURALLY MORE BUILDINGS ARE GOING UP IT ISN'T DENIAL SCHOOL OFFICIALS SAY THEY CANNOT COMPETE EFFECTIVELY IN TODAY'S TIGHTENING MARKET UNLESS THEY CONSTRUCT STYLISH NEW QUARTERS LOADED WITH THE LATEST HIGHTECH GEAR THE EDIFICE COMPLEX IS UNPRECEDENTED BY ONE COUNT 18 OF 20 TOPRANKED US SCHOOLS ARE PLANNING UNDERGOING OR JUST FINISHING BIG CONSTRUCTION PROJECTS WITH A TOTAL COST EXCEEDING 500 MILLION MAJOR BUILDING VENTURES ARE UNDER WAY AT DOZENS OF OTHER BUSINESS SCHOOLS TOO AT BOSTON UNIVERSITY'S BUSINESS SCHOOL FOR INSTANCE MBA APPLICATIONS AND ENROLLMENT HAVE SLIPPED ABOUT 10 FROM TWO YEARS AGO YET THE SCHOOL PLANS TO BREAK GROUND IN MAY FOR A FANCY NEW BUILDING WITH A SIXSTORY ATRIUM 2000 COMPUTER OUTLETS AND 50 MORE CLASSROOM OFFICE AND MEETING SPACE BU HAS ALREADY CONSTRUCTED MOCKUPS OF THE LATEST IN BUSINESS CLASSROOMS AND FACULTY OFFICES AND IS SOLICITING PROFESSORS' REACTIONS TO THE PROTOTYPES THE COMPLETED BUILDING AT A PROJECTED COST OF 80 MILLION WILL BE ONE OF THE MOST EXPENSIVE MANAGEMENTEDUCATION FACILITIES ANYWHERE IT'S GOING TO BE A REAL ATTENTION GETTER SAYS LOUIS E LATAIF THE SCHOOL'S DEAN SOME CRITICS QUESTION THE WISDOM OF INVESTING IN MORE SPACE AMID DECREASING INTEREST IN BUSINESS EDUCATION AFTER PEAKING IN THE LATE 1980S THE VOLUME OF MBA APPLICATIONS HAS DROPPED SHARPLY IN RECENT YEARS NATIONWIDE REGISTRATIONS FOR THE GRADUATE MANAGEMENT ADMISSION TEST REQUIRED OF MOST MBA APPLICANTS DIPPED 16 BETWEEN 1991 AND 1993 AND CONTINUE TO SLIDE MANY SCHOOLS ALSO REPORT DECLINING DEMAND FOR THEIR EXECUTIVE EDUCATION AND UNDERGRADUATE PROGRAMS IN SCHOOL AFTER SCHOOL THE CURRENT BUILDING BOOM DEFIES THIS SHRINKING DEMAND THE ANDERSON SCHOOL AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES HAS SEEN FULLTIME MBA APPLICATIONS AND ENROLLMENT PLUNGE MORE THAN 27 DURING THE LAST THREE YEARS BUT NEXT YEAR THE SCHOOL WILL GAIN 50 MORE SPACE WHEN IT MOVES INTO A 75 MILLION SEVENBUILDING ACADEMIC VILLAGE FOR GRADUATE MANAGEMENT STUDY TEXAS A&M UNIVERSITY'S MBA PROGRAM SUFFERED AN 18 DROP IN APPLICATIONS AND A 36 PLUNGE IN ENROLLMENT LAST YEAR ALONE ITS UNDERGRADUATE ENROLLMENT HAS DECREASED MORE THAN 25 SINCE 1989 NEVERTHELESS THE SCHOOL NOW IS FINISHING A 235 MILLION FACILITY SOME BUILDING PROJECTS BEGAN LONG BEFORE STUDENT INTEREST STARTED TO WANE ONCE YOU START CONSTRUCTION YOU CAN'T STOP IT SAYS WILLIAM P PIERSKALLA DEAN AT UCLA'S ANDERSON SCHOOL HE AND DEANS OF OTHER TOP SCHOOLS SAY THEY DON'T WORRY MUCH ABOUT RECENT SLIPS IN APPLICATIONS AND ENROLLMENT BECAUSE THEY STILL HAVE MANY MORE APPLICANTS THAN SPACES AT WORST THEY CONTEND STUDENT DEMAND IS RETURNING TO LEVELS THAT PRECEDED THE MBA BOOM OF THE 1980S BUT WITH THE RISK THAT DEMAND MIGHT DROP STILL FURTHER BUSINESSSCHOOL DEANS INSIST THAT THEY NEED NEW FACILITIES TO ATTRACT QUALITY STUDENTS AND FACULTY AS MORE SCHOOLS PUT UP NEW BUILDINGS MBA AND EXECUTIVEEDUCATION STUDENTS EVERYWHERE EXPECT BETTER CLASSROOMS LOUNGES AND LIBRARIES MOREOVER DEANS SAY THEY REQUIRE UPGRADED FACILITIES TO SUPPORT RECENT CURRICULUM CHANGES THAT EMPHASIZE SMALLGROUP LEARNING TEAM PROJECTS AND COMPUTER AND VIDEO TECHNOLOGY THE NATURE OF BUSINESS EDUCATION HAS CHANGED SAYS ALAN MERTEN DEAN OF CORNELL UNIVERSITY'S JOHNSON SCHOOL UNTIL RECENTLY HE CONTINUES ALL YOU NEEDED WAS A BLACKBOARD AND A CLASSROOM BUT NOW YOU NEED VIDEO CONFERENCING MULTIMEDIA AND ALL KINDS OF DIFFERENT SPACES SPACE IS SO TIGHT AT JOHNSON THAT SOME FACULTY MEMBERS LACK OFFICES MR MERTEN SAYS SO DESPITE A 35 DECLINE IN MBA APPLICATIONS SINCE 1991 CORNELL PLANS TO BUILD A 35 MILLION LARGER HOME IN A LANDMARK CAMPUS BUILDING EVEN SCHOOLS THAT HAVEN'T LOST MBA APPLICANTS BELIEVE THEY MUST ADD MORE AND BETTER SPACE TO MAINTAIN A COMPETITIVE EDGE WE'RE NOT GOING TO BE ABLE TO SIT WITH A 35THRATE BUILDING FOR VERY LONG WITHOUT IMPERILING OUR POSITION SAYS JACE SCHINDERMAN AN ASSOCIATE DEAN AT COLUMBIA UNIVERSITY'S BUSINESS SCHOOL MBA APPLICATIONS THERE HAVE INCREASED 26 DURING THE PAST TWO YEARS COLUMBIA HAS SPENT 4 MILLION SINCE 1990 MAKING PATCHWORK IMPROVEMENTS AND INSTALLING COMPUTER WIRING IN ITS CRAMPED 34YEAROLD BUILDING BUT NOW IT IS STUDYING PLANS FOR A NEW BUILDING PROJECTED TO COST BETWEEN 60 MILLION AND 100 MILLION COLUMBIA'S SUCCESS DESPITE ITS CROWDED QUARTERS RAISES THE QUESTION OF WHETHER NEW FACILITIES MATTER THE REPUTATIONS OF THE SCHOOLS ARE ALREADY TOO ESTABLISHED TO BE INFLUENCED BY A MERE BUILDING SAYS SAM LUNDQUIST DIRECTOR OF GRADUATE ADMISSIONS AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL WHARTON'S NEWEST BUILDING AN EXECUTIVEEDUCATION CENTER WAS COMPLETED FOUR YEARS AGO INDEED THE 67 MILLION HOME OF NEW YORK UNIVERSITY'S STERN SCHOOL WHICH OPENED IN THE FALL OF 1992 WAS THE NINTH MOST IMPORTANT FACTOR INFLUENCING STUDENTS TO ENROLL THIS PAST FALL ACCORDING TO A STERN SURVEY THE BUILDING RANKED BEHIND STERN'S LOCATION REPUTATION IN FINANCE AND OTHER ELEMENTS NONETHELESS THE SCHOOL IS USING THE STRUCTURE AS A KEY SELLING POINT IN PROMOTIONAL AND FUNDRAISING MATERIAL NOT SURPRISINGLY THE BUILDING BOOM HAS SET OFF A FRENZY OF FUND RAISING BY BUSINESS SCHOOLS FEW HAVE RAISED ALL OF THE MONEY IN ADVANCE MOST BORROW SOME EXPECTING HIGHER REVENUE TO COVER THE DEBT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAYS IT MUST RAISE ANOTHER 6 MILLION JUST TO FURNISH ITS 45 MILLION THREEBUILDING CAMPUS SET FOR COMPLETION LATER THIS YEAR TO HELP COVER HIGHER OPERATING COSTS BERKELEY HOPES TO BOOST ITS EXECUTIVEEDUCATION REVENUE FIVEFOLD TO 125 MILLION IN COMING YEARS FROM 25 MILLION NOW THE UNIVERSITY OF MINNESOTA'S CARLSON SCHOOL NEEDS ANOTHER 35 MILLION FOR ITS PLANNED 45 MILLION FACILITY TO HELP MAKE ITS CASE WITH DONORS AND LAWMAKERS MINNESOTA HAS PREPARED A CHART RANKING IT DEAD LAST IN THE NUMBER OF SQUARE FEET PER STUDENT AMONG A DOZEN BUSINESS SCHOOLS AT BIG PUBLIC UNIVERSITIES ALL EXCEPT CARLSON HAVE RECENTLY BUILT OR NOW ARE BUILDING UPGRADED FACILITIES THE SCHOOL NOTES AT CORNELL A NEW BUILDING IS GOING TO PUT PRESSURE FOR NEW REVENUE ACROSS THE BOARD FROM ANNUAL FUND RAISING TO EXECUTIVE EDUCATION DEAN MERTEN SAYS THE SCHOOL WON'T PROCEED UNLESS IT HAS LINED UP THE NECESSARY MONEY HE ADDS BUT AS LONG AS IT MAKES FISCAL SENSE THE DEAN SAYS NOW'S THE TIME TO INVEST IN FIRSTCLASS MBA PROGRAMS THEY'RE NOT GOING TO GO AWAY 9402140104 940214 CLAIM CHARGING COORS WITH DISCRIMINATION REJECTED IN US COURT DENVER A FEDERALCOURT JURY REJECTED A CLAIM BY A CHICAGO BUSINESSMAN THAT HIS NOWDEFUNCT COMPANY FAILED IN 1990 DUE TO RACIAL DISCRIMINATION BY ADOLPH COORS CO'S COORS BREWING CO FELIX A BURROWS JR SUED COORS UNDER THE CIVIL RIGHTS ACT OF 1991 IN US DISTRICT COURT HERE ALLEGING THAT COORS HAD CANCELED ORDERS FOR BREWINGMACHINERY PARTS FOR RACIALLY MOTIVATED REASONS THOSE CANCELLATIONS CAUSED HIS GREAT AMERICAN TOOL & MANUFACTURING CO TO FAIL MR BURROWS ALLEGED MR BURROWS HAD SOUGHT COMPENSATORY AND PUNITIVE DAMAGES IN EXCESS OF 20 MILLION THE JURY REJECTED MR BURROWS'S CLAIM AFTER A TWOWEEK TRIAL COORS TESTIFIED THAT IT HAD PROVIDED MR BURROWS WITH NOINTEREST LOANS AND EXPEDITED PAYMENT OF ITS INVOICES TO TRY TO HELP HIM STAY IN BUSINESS RATHER THAN CANCELING ORDERS COORS INCREASED ITS ORDERS FOR PARTS TO 64000 A MONTH IN 1990 FROM 5200 A MONTH IN 1986 THE BREWER ARGUED WHEN GREAT AMERICAN FAILED IT HELD 58000 IN UNFILLED ORDERS FROM THE BREWER COORS SAID MR BURROWS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT 9402140103 940214 US PLANS SANCTIONS MOVE AS TALKS WITH JAPAN FAIL ACTION ON CELLULAR PHONES IS BID TO RAISE PRESSURE ON TOKYO AFTER SUMMIT BY WALL STREET JOURNAL REPORTERS BOB DAVIS IN WASHINGTON AND JACOB M SCHLESINGER IN TOKYO THE US IS POISED TO LAUNCH TRADESANCTION PROCEEDINGS TOMORROW AGAINST JAPAN OVER CELLULAR TELEPHONES AS PART OF A BROAD EFFORT TO RATCHET UP PRESSURE ON TOKYO THE MOVES FOLLOW THE COLLAPSE OF A TRADE SUMMIT BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ON FRIDAY THE FIRST TIME IN DECADES THAT A SUMMIT BETWEEN THE US AND JAPAN HAS ENDED IN FAILURE THE MEETING WAS SUPPOSED TO REDEFINE FUNDAMENTALLY TRADE RELATIONS BETWEEN THE TWO NATIONS BUT INSTEAD RESULTED IN STALEMATE AND FRUSTRATION IT IS BETTER TO HAVE REACHED NO AGREEMENT THAN AN EMPTY AGREEMENT MR CLINTON SAID WE'LL JUST COOL OUR HEADS FOR A WHILE MR HOSOKAWA SAID THEIR COMMENTS OCCURRED AFTER THE US CALLED OFF THE SOCALLED FRAMEWORK TRADE TALKS FIGURING JAPAN WOULDN'T AGREE TO THE FUNDAMENTAL US DEMAND TO SET IMPORT GOALS EACH SIDE BLAMED THE OTHER'S INTRANSIGENCE FOR THE BREAKDOWN AND EACH SIDE PROUDLY HUFFED THAT ITS LEADER HAD FINALLY STOOD UP TO THE OTHER BREAKING A PATTERN OF RECENT YEARS WHEN THE NATIONS SIGNED TRADE PACTS THAT NEITHER LIKED SIMPLY TO SATISFY THE OTHER INDEED MANY JAPANESE SAY THE SUMMIT'S FAILURE REFLECTS A MATURING OF THE BILATERAL RELATIONSHIP RATHER THAN TREMBLING IN FEAR OVER PROSPECTS OF A TRADE WAR MANY JAPANESE PORTRAYED THE SUMMIT AS A TURNING POINT MARKING THEIR NATION'S GROWTH BEYOND THE LITTLE BROTHER ROLE IT HAS PLAYED SINCE WORLD WAR II TO THE US BIG BROTHER OUR RELATIONSHIP IN THIS NEW ERA IS MATURING TO AN EXTENT EACH OF US RESPECTS AND HAS CONFIDENCE IN THE JUDGMENTS OF THE OTHER BUT AT THE SAME TIME WE FRANKLY ADMIT WHAT WE CAN AND WHAT WE CANNOT DO MR HOSOKAWA SAID I BELIEVE THIS IS THE RELATIONSHIP BETWEEN GROWNUPS THOSE WORDS RESONATED THROUGHOUT JAPAN OVER THE WEEKEND THE JAPAN THAT SAID NO' WAS THE HEADLINE OVER SUNDAY'S EDITORIAL IN THE ENGLISHLANGUAGE EDITION OF YOMIURI SHIMBUN THE NATION'S LARGEST CIRCULATION DAILY AN ALLUSION TO A BESTSELLING BOOK PUBLISHED FIVE YEARS AGO URGING JAPAN TO TAKE A MORE ASSERTIVE STANCE TOWARD THE US BOTH LEADERS STRESSED THAT THEY WOULDN'T LET ECONOMIC TENSIONS UNDERMINE COOPERATION IN DIPLOMATIC AND SECURITY MATTERS MR HOSOKAWA VOWED FOR EXAMPLE THAT JAPAN WOULD WORK WITH THE US TO TRY TO BLOCK NORTH KOREA'S NUCLEARWEAPONS PROGRAM ON TRADE ISSUES WHITE HOUSE CHIEF ECONOMIST LAURA TYSON SAID OUR POSITION IS THE DOOR IS OPEN FOR FURTHER NEGOTIATIONS BUT THEY HAVE TO INITIATE TO GET JAPAN TO KNOCK ON THE DOOR WITH A NEW PROPOSAL THE US IS DISCUSSING A LIST OF OPTIONS MEANT TO INCREASE TENSION IN TOKYO IN RESPONSE TO COMPLAINTS OVER JAPAN'S POLICY ON CELLULAR TELEPHONES THE ADMINISTRATION IS PLANNING PROHIBITIVELY HIGH TARIFFS ON A VARIETY OF JAPANESE EXPORTS US OFFICIALS ALSO SAID THEY EXPECT THE ADMINISTRATION TO APPROVE BY EXECUTIVE ORDER THE RENEWAL OF A TRADE PROVISION KNOWN AS SUPER 301 UNDER THAT LAW THE US TARGETS COUNTRIES ENGAGING IN UNFAIR TRADE PRACTICES AND REQUIRES RETALIATION UNLESS THOSE NATIONS CHANGE THEIR WAYS TOKYO HATES SUPER 301 WHICH WAS IN EFFECT DURING THE EARLY YEARS OF THE BUSH ADMINISTRATION BECAUSE IT REALIZES THAT THE LAW IS AIMED DIRECTLY AT JAPAN AT THE SAME TIME CLINTON OFFICIALS SAID THEY MAY BEGIN TO COURT ALLIES IN JAPAN'S BACKYARD SUCH AS SOUTH KOREA AND SINGAPORE BY CONSPICUOUSLY OFFERING THEM TRADE AND TECHNOLOGY DEALS THE IDEA IS TO REMIND JAPAN OF ITS POLITICAL AND ECONOMIC DEPENDENCE ON THE US BUT NOT GO SO FAR AS TO UNDERMINE THE HOSOKAWA REGIME THE CLINTON TEAM VIEWS THE JAPANESE PRIME MINISTER AS COMMITTED TO CHANGE BUT DOMINATED BY CAREER MANDARINS EQUALLY COMMITTED TO THE STATUS QUO THE USJAPAN RELATIONSHIP HAS TO GO DOWN BEFORE IT GOES UP SAID A SENIOR US OFFICIAL EVEN THOUGH WE HAVEN'T REACHED AGREEMENT THAT DOESN'T MEAN JAPAN WON'T DO ANYTHING A SENIOR FOREIGN MINISTRY OFFICIAL SAID SHORTLY AFTER THE SUMMIT FELL APART HE SAID JAPAN WOULD CONTINUE WORKING TO CHANGE LAWS AND REGULATIONS THE US CLAIMS ARE BARRIERS TO ENTERING JAPAN'S INSURANCE AND GOVERNMENT PROCUREMENT MARKETS MR HOSOKAWA ALSO INDICATED THAT JAPAN WILL MOVE UNILATERALLY TO OPEN ITS MARKETS SOON AFTER RETURNING HOME WE WILL CONSIDER THE PROBLEM OUR SIDE MUST COME UP WITH SOME WISDOM AND JAPAN WILL DO WHAT IT CAN ON ITS OWN MR HOSOKAWA SAID ON HIS FLIGHT BACK TO TOKYO REUTERS NEWS SERVICE REPORTED BUT JAPANESE LEADERS WERE VIRTUALLY UNANIMOUS IN ASSERTING THAT THEY WILL NO LONGER TAKE US SANCTION THREATS LYING DOWN NO ONE SUGGESTED THAT TOKYO WILL RETALIATE IN KIND INSTEAD JAPANESE OFFICIALS SAID THEY WOULD REFER US COMPLAINTS TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE WORLD TRADE REFEREE IN GENEVA WHERE AN INDEPENDENT PANEL WOULD REVIEW THE LEGITIMACY OF US CHARGES THE CLINTON ADMINISTRATION EXPECTS TO MAKE DECISIONS ON TRADE STRATEGY WITH JAPAN OVER THE NEXT MONTH BUT THE CELLULARTELEPHONE CONTROVERSY GIVES THE US A QUICKSTRIKE OPTION AND ONE THAT ILLUSTRATES US COMPLAINTS ABOUT A CLOSED JAPANESE MARKET MOTOROLA INC WHICH HAS SPENT YEARS FIGHTING JAPANESE BUREAUCRATS COMPLAINS OF BEING DENIED COMPARABLE ACCESS TO THE JAPANESE CELLULARTELEPHONE MARKET DESPITE A TRADE AGREEMENT PROMISING MOTOROLA AN OPEN MARKET IN AN AREA SOUTH OF TOKYO JAPAN'S MINISTRY OF POST AND TELECOMMUNICATIONS PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAIN RIVAL NIPPON TELEGRAPH & TELEPHONE CORP THE RESULT SAYS MOTOROLA IS THAT ITS PARTNER SPENDS MOST OF ITS EFFORT PUSHING NTT'S TECHNOLOGY NOT MOTOROLA'S SO MOTOROLA HAS ENLISTED THE US GOVERNMENT'S HELP IN GETTING GUARANTEES FROM THE COMPANY AND MINISTRY THAT MOTOROLA'S TECHNOLOGY WILL BE MADE BROADLY AVAILABLE TO CONSUMERS US TRADE REPRESENTATIVE MICKEY KANTOR SAID HE BROUGHT UP THE MOTOROLA CASE RECENTLY AND SO FAR WE'VE SEEN NO MOVEMENT UNLESS JAPAN CHANGES ITS VIEW US OFFICIALS SAID THE US PLANS TO DECLARE THAT TOKYO VIOLATED THE CELLULAR TRADE DEAL THE FIRST STEP IN IMPOSING TRADE SANCTIONS THE ADVANTAGE OF TRADE SANCTIONS US OFFICIALS SAID IS THAT THEY GET ATTENTION IN TOKYO BUT TAKE MONTHS TO PUT IN PLACE DURING THAT TIME THE US CAN TRY TO COORDINATE PRESSURE ON JAPAN IN OTHER WAYS AND GIVE TOKYO TIME TO TRY TO FIND A WAY OUT OF ITS PREDICAMENT MR HOSOKAWA'S CLAIM THAT HE WILL TRY TO SATISFY THE US BY PURSUING DEREGULATION DOESN'T SATISFY AMERICAN GOVERNMENT AND INDUSTRY OFFICIALS THAT WON'T CHANGE BEHAVIOR AND WHAT WE HAVE TO DO IS CHANGE BEHAVIOR SAID RICHARD DYCK THE HEAD OF JAPANESE OPERATIONS OF TERADYNE INC A US MAKER OF SEMICONDUCTOR EQUIPMENT IT MAKES SENSE TO SET AFFIRMATIVE ACTION' TARGETS TO CHANGE JAPANESE BEHAVIOR STILL CLINTON ECONOMIC OFFICIALS SAID THEY HAVE THEIR LIMITS THEY REJECT OUT OF HAND SUGGESTIONS THAT THE US SELECTIVELY AUDIT THE TAX RETURNS OF JAPANESE COMPANIES IN ADDITION ADMINISTRATION OFFICIALS SAID THEY WEREN'T PLANNING A BROAD EFFORT TO DRIVE UP THE VALUE OF THE YEN AGAINST THE DOLLAR A STRONGER YEN HELPS US EXPORTS BECAUSE IT MAKES THEM RELATIVELY CHEAPER THE YEN DID RISE ON FRIDAY AFTER THE TRADE TALKS FAILED IN ANTICIPATION OF US CURRENCY MANIPULATION BUT THE GLOBAL FLOW OF FUNDS IS SO VAST CLINTON OFFICIALS SAID THAT THE US GOVERNMENT CAN'T UNILATERALLY PUSH THE YEN IN ANY DIRECTION FOR A SUSTAINED PERIOD OF TIME WITH THE US ECONOMY RECOVERING AND JAPAN'S IN THE DOLDRUMS MARKET FORCES MAY WEAKEN THE YEN IF THE US TRIED TO REVERSE THAT TREND AND FAILED IT WOULD MAKE THE CLINTON ADMINISTRATION SEEM IMPOTENT THE US IS CONSIDERING VARIOUS OTHER TACTICS IT MAY TACITLY ENDORSE LEGISLATION BY HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO TO WRITE INTO LAW THE GOALS AND MEASUREMENTS THE US TRIED TO NEGOTIATE WITH JAPAN SEPARATELY THE FEDERAL TRADE COMMISSION IS PURSUING AN ANTITRUST INVESTIGATION BEGUN IN THE BUSH ADMINISTRATION OF THE PURCHASING PRACTICES OF JAPANESE CAR MAKERS LOCATED IN THE US WHILE THE FTC DOESN'T APPEAR LIKELY TO BRING A CASE THE JUSTICE DEPARTMENT ALSO IS LOOKING AT ANTICOMPETITIVE PRACTICES OF JAPANESE AUTO COMPANIES US OFFICIALS SAID IN A MOVE ADVOCATED BY FREETRADE CRITICS OF THE ADMINISTRATION WHO DISLIKE US MUSCLING OF JAPAN THE US MAY BRING A BROAD TRADE ACTION AGAINST JAPAN AT THE GATT SUCH A COMPLAINT WOULD ALLEGE THAT JAPAN'S MARKET BARRIERS NULLIFY AND IMPAIR THE TRADELIBERALIZATION PLEDGES JAPAN HAS MADE AS A GATT PARTNER WINNING SUCH A GATT CASE IS A LONGSHOT BUT WOULD HAVE THE EFFECT OF PUTTING JAPAN ON TRIAL FOR THE INVISIBLE TRADE BARRIERS THAT THE US SAYS ANIMATES ITS GRIEVANCES IN THE FRAMEWORK TALKS JAPAN SEIZED THE HIGH GROUND BY CONTENDING THAT THE US WAS ABANDONING FREEMARKET PRINCIPLES MY ADMINISTRATION IS PROMOTING DEREGULATION MR HOSOKAWA SAID IN WASHINGTON SO THE US EFFORTS RUN RIGHT IN THE FACE OF OUR BASIC TENET THE US DEMANDS CALL FOR A MIX OF GOVERNMENT CONTROL AND DEREGULATION IN THE AUTO INDUSTRY FOR INSTANCE THE US WANTS JAPANESE CAR MAKERS TO BUY 20 MORE AUTO PARTS ANNUALLY FROM FOREIGN VENDORS A PLEDGE THAT WOULD REQUIRE JAPANESE GOVERNMENT OVERSIGHT BUT AT THE SAME TIME THE US IS PRESSING TOKYO TO DEREGULATE ITS INSPECTION AND CERTIFICATION SYSTEM AND TO LOOSEN THE GRIP JAPANESE CAR MAKERS HAVE ON AUTO DEALERS THOSE MOVES WOULD REDUCE THE POWER OF THE JAPANESE BUREAUCRACY TRADE WITH JAPAN WASN'T FREE BEFORE SAID WHITE HOUSE ECONOMIST ALAN BLINDER WE'RE TRYING TO NUDGE THE MARKET TO PRODUCE RESULTS MORE CONSISTENT WITH FREER TRADE NEVERTHELESS THE CLINTON ADMINISTRATION HAS CLEARLY LOST THE PUBLIC RELATIONS BATTLE IN JAPAN IN THE PAST SUCH A SUMMIT WOULD HAVE TRIGGERED ALARM BELLS IN TOKYO WITH PANIC ABOUT FRAYING TIES WITH THE COUNTRY'S MOST IMPORTANT ALLY THE WEEKEND TALK SHOWS DID CARRY SUCH TITLES AS THE USJAPAN ECONOMIC WAR BUT INTEREST IN THE TOPIC SEEMED TO FADE QUICKLY BY SUNDAY THE PRESS WAS MORE CONCERNED WITH TAXES AND TOKYO'S SATURDAY SNOWSTORM THE HEAVIEST IN 25 YEARS THE CALM REACTION TO THE SUMMIT BREAKDOWN WAS A WELCOME RELIEF TO MR HOSOKAWA WHO HAS BEEN BATTERED BY DOMESTIC POLITICAL STORMS LATELY ANALYSTS SAID HOWEVER THAT THE FAILED SUMMIT COULD START TO HURT HIM IF US TRADE PRESSURE WORSENS JAPAN'S PERSISTENT RECESSION THE AVERAGE PERSON PREFERS THAT HE PAY MORE ATTENTION TO THE ECONOMY THAN TO NATIONALISTIC INDEPENDENCE SAID TAKAO TOSHIKAWA THE EDITOR OF A POLITICAL NEWSLETTER 9402140102 940214 INTERNATIONAL ITALY PREMIER DEFENDS BANK INDUSTRY IN WAKE OF MOODY'S REPORT SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN PRIME MINISTER CARLO AZEGLIO CIAMPI SAID THE ITALIAN BANKING SYSTEM IS FINANCIALLY SOLID THE PRIME MINISTER ISSUED HIS DEFENSE OF THE BANKING SECTOR IN THE AFTERMATH OF A REPORT FROM MOODY'S INVESTORS SERVICE INC ON THURSDAY IN WHICH THE RATINGS AGENCY SAID IT FORESEES SIGNIFICANT STRESS ON THE CREDIT RATINGS OF ITALIAN BANKS OVER THE NEXT FEW YEARS MR CIAMPI SAID ITALY'S BANKING SYSTEM IS CAPABLE OF GIVING INDUSTRY A FUNDAMENTAL CONTRIBUTION FOR GETTING THROUGH THE RECESSION AND LAUNCHING ECONOMIC RECOVERY HE ALSO SAID THE ITALIAN BANKING INDUSTRIES' DIFFICULTIES ARE THOSE CONNECTED TO THE CRISIS THAT HAS AFFECTED THE ENTIRE EUROPEAN ECONOMY ITALY'S BANKING SECTOR HAS BEEN HIT BY PROBLEM LOANS PARTICULARLY TO THE TROUBLED FERRUZZI SPA CONGLOMERATE BUT IT ALSO HASN'T BEEN IMMUNE TO CHARGES OF CORRUPTION MOST RECENTLY SEVERAL DIRECTORS OF ITALIAN SAVINGS BANK CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE KNOWN AS CARIPLO WERE CHARGED WITH ILLEGAL USE OF CARIPLO PENSIONFUND MONEY AS WELL AS WITH SOME IRREGULARITIES CONCERNING REALESTATE DEALS 9402140101 940214 BUSINESS BRIEF PLAINS RESOURCES INC CREDIT INCREASED 15 MILLION AIDING '94 CAPITAL PROGRAM PLAINS RESOURCES INC HOUSTON SAID CREDIT AVAILABLE TO IT INCREASED TO 55 MILLION FROM 40 MILLION THE OILANDGAS COMPANY SAID AN AMENDED AGREEMENT WITH CREDITOR INTERNATIONALE NEDERLANDEN US CAPITAL CORP A UNIT OF AMSTERDAMBASED INTERNATIONALE NEDERLANDEN GROEP PROVIDES FOR INITIAL AVAILABILITY OF 50 MILLION PLAINS SAID IT BORROWED 356 MILLION AS OF DEC 31 PHIL KRAMER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE CREDIT INCREASE WILL ENABLE THE COMPANY TO IMPLEMENT ITS 1994 CAPITAL PROGRAM OF 15 MILLION TO 20 MILLION EVEN IF CRUDEOIL PRICES REMAIN AT THEIR CURRENT LEVEL 9402140100 940214 BUSINESS BRIEF NATIONAL SECURITY GROUP INC JURY ORDERS INSURER TO PAY 35 MILLION IN PERSONNEL CASE NATIONAL SECURITY GROUP INC SAID A CIRCUITCOURT JURY IN RUSSELL COUNTY ALA ORDERED A COMPANY SUBSIDIARY TO PAY 35 MILLION IN A PERSONNEL CASE THE VERDICT AGAINST NATIONAL SECURITY INSURANCE CO STEMMED FROM LITIGATION INVOLVING THE DEMOTION AND REASSIGNMENT OF A MARKETING REPRESENTATIVE NATIONAL SECURITY GROUP SAID ITS SUBSIDIARY IS FILING POSTTRIAL MOTIONS AND INTENDS TO FILE AN APPEAL IF NECESSARY TO THE ALABAMA SUPREME COURT A SPOKESMAN FOR NATIONAL SECURITY GROUP AN INSURER BASED IN ELBA ALA SAID THE COMPANY WOULD BE IN A BETTER POSITION TO DETERMINE WHAT CONSEQUENCES IF ANY THE VERDICT MIGHT HAVE ON ITS ACCOUNTING STATEMENTS ONCE ALL POSTTRIAL MOTIONS HAVE BEEN RULED UPON IN NASDAQ STOCK MARKET TRADING FRIDAY NATIONAL SECURITY GROUP CLOSED AT 26 A SHARE UNCHANGED 9402140099 940214 ACQUITTAL OF SEN HUTCHISON PAVES WAY FOR TEXAS REPUBLICAN'S REELECTION BID BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN KAY BAILEY HUTCHISON'S ACQUITTAL ON STATE ETHICS CHARGES IN A BIZARRE FINALE MINUTES AFTER HER TRIAL BEGAN FRIDAY LEAVES THE TEXAS REPUBLICAN THE FRONTRUNNER FOR REELECTION THIS YEAR DUE TO DOUBLEJEOPARDY PROTECTIONS SEN HUTCHISON CAN'T BE TRIED AGAIN ON THE CRIMINAL CHARGES THAT AS STATE TREASURER FROM 1991 TO MID1993 SHE USED STATE WORKERS FOR POLITICAL AND PERSONAL TASKS AND THEN SOUGHT TO COVER UP THE EVIDENCE BY DESTROYING RECORDS EVEN BEFORE THE TRIAL'S FINAL TWIST THE STATE PROSECUTORS' CASE HAS BEEN PLAGUED BY TECHNICAL SNAFUS THAT TWICE FORCED THEM TO SEEK NEW INDICTMENTS THE FRESHMAN SENATOR HAILED THE OUTCOME IN FORT WORTH WHERE THE TRIAL HAD BEEN MOVED AFTER HER DEFENSE LAWYERS ARGUED THAT AN UNBIASED JURY COULDN'T BE FOUND IN AUSTIN REPEATING HER CONTENTION THAT THE WHOLE AFFAIR WAS A DEMOCRATIC PLOT SHE SAID AFTERWARD THE LADY SHOWED SHE COULD TAKE THE WORST THAT A CORRUPTION OF THE POLITICAL SYSTEM COULD GIVE THE INDIGNANT PROSECUTOR TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE THE NEXT DAY TOOK HIS CASE TO THE PUBLIC ARENA GIVING REPORTERS ACCESS TO REAMS OF DOCUMENTS THAT HE ARGUED SHOWED A MASSIVE MISUSE OF STATE EMPLOYEES AND STATE RESOURCES SEN HUTCHISON SUPPORTED THE RELEASE OF THE EVIDENCE ACCORDING TO A PRELIMINARY REVIEW BY THE ASSOCIATED PRESS STATE WORKERS WROTE MRS HUTCHISON'S THANKYOU NOTES FOR POLITICAL TRIPS AND FOR GIFTS RECORDED POLITICAL CONTRIBUTIONS AND HANDLED HER POLITICAL SCHEDULE MR EARLE ABRUPTLY ABANDONED HIS CASE AGAINST SEN HUTCHISON WHEN JUDGE JOHN ONION JR REFUSED TO RULE ON WHETHER THOSE DOCUMENTS SEIZED FROM THE STATE TREASURY ON THE BASIS OF A GRANDJURY SUBPOENA WERE ADMISSIBLE EVIDENCE THE SENATOR'S DEFENSE TEAM CONTENDED THE ITEMS WERE ILLEGALLY SEIZED BECAUSE INVESTIGATORS HAD NO SEARCH WARRANT GIVEN THE EVIDENTIARY SNARL MR EARLE HOPED THE JUDGE WOULD DISMISS THE CHARGES BEFORE A JURY WAS SWORN IN ONCE A JURY WAS SWORN IN DOUBLE JEOPARDY WOULD PREVENT HIM FROM REINDICTING HER WHEN THE JUDGE ORDERED THE TRIAL TO PROCEED MR EARLE REFUSED TO PROSECUTE AND JUDGE ONION ORDERED THE JURY TO ACQUIT THE SENATOR DEMOCRATS AND REPUBLICANS AGREED THAT THE OUTCOME WAS A POLITICAL AS WELL AS LEGAL BOON TO SEN HUTCHISON SHE WAS ELECTED WITH 67 OF THE VOTE IN A SPECIAL CONTEST LAST SUMMER REPLACING LLOYD BENTSEN AFTER HE WAS NAMED TREASURY SECRETARY AND THE LEGAL AFFAIR HAD CUT INTO HER POPULARITY BUT NOW SHE CAN CONCENTRATE ON REELECTION WHILE DEMOCRATS FIGHT TO PICK A RIVAL IN A MARCH 8 PRIMARY CANDIDATES INCLUDE FORMER STATE ATTORNEY GENERAL JIM MATTOX REP MICHAEL ANDREWS AND BUSINESSMAN RICHARD FISHER EVEN SO THE ALLEGATIONS WON'T DISAPPEAR AS A POLITICAL ISSUE IT'S NOT LIKE A JURY OF 12 FOUND HER INNOCENT SAID SAM KINCH EDITOR OF TEXAS WEEKLY A STATE POLITICAL NEWSLETTER MOREOVER THE RELEASE OF THE WOULDBE EVIDENCE HE SAID GIVES WHOEVER THE DEMOCRATIC NOMINEE IS THE CHANCE TO TROT ALL THIS OUT THE DEMOCRATIC FAVORITE IS MR MATTOX WHO HAS ETHICAL SCARS OF HIS OWN BUT HE ALSO COULD UNDERCUT SEN HUTCHISON'S CENTRAL COMPLAINT THAT MR EARLE WAS LEADING A DEMOCRATIC WITCHHUNT MR MATTOX WAS TRIED BY MR EARLE IN THE MID1980S ON A BRIBERYRELATED CHARGE AND ACQUITTED 9402140098 940214 CHAIRMAN SAYS MERCK IS POISED TO SURVIVE INDUSTRY DOWNTURN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON P ROY VAGELOS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MERCK & CO SAID THE PROFITABILITY OF THE PHARMACEUTICAL INDUSTRY COULD BE HEADED FOR TROUBLE BUT THAT MERCK IS WELLPOSITIONED FOR THE CHANGES AHEAD THE PROFITABILITY OF THE INDUSTRY SURELY IS DECREASING ABSOLUTELY MR VAGELOS SAID IN AN INTERVIEW AT THE BIG DRUG MAKER'S WASHINGTON OFFICE YOU CAN'T LOOK AT IT OVER ONE YEAR TWO YEARS HE CONTINUED BUT BY THE YEAR 2000 HE SAID THE INDUSTRY WILL BE IN BAD SHAPE HOWEVER MR VAGELOS CONTENDED MERCK WILL BE IN GREAT SHAPE BECAUSE WE TOOK ALL THE RIGHT STEPS MERCK IS INCREASINGLY GETTING INVOLVED IN MANAGED CARE PARTICULARLY WITH ITS ACQUISITION LAST YEAR OF MEDCO CONTAINMENT SERVICES INC A LARGE MANAGEDCARE PHARMACEUTICAL DISTRIBUTOR MR VAGELOS SAID WE HAVE FIGURED OUT WHERE THE MARKET IS GOING HE SAID AS MANAGEDCARE HAS DEVELOPED AMONG DOCTORS AND HOSPITALS IT IS DEVELOPING ON THE PHARMACEUTICAL SIDE AND WE'RE RIGHT IN THE MIDDLE OF IT MR VAGELOS INDICATED THAT DRUG COMPANIES WILL FIGHT THE REGULATORY MEASURES IN PRESIDENT CLINTON'S HEALTH REFORM BILL AND OTHER PROPOSALS THE THING THAT SCARES ME THE MOST AND THAT I'M VIOLENTLY OPPOSED TO HE SAID IS THE POSSIBILITY OF A GOVERNMENT AGENCY COMMITTEE OR SOMEBODY DETERMINING WHETHER A BREAKTHROUGH PRODUCT WE'VE WORKED ON FOR 15 YEARS IS FAIRLY PRICED I'D RATHER HAVE THE FREE MARKET DETERMINE PRICE REGARDLESS OF WHETHER DRUG COMPANIES ARE SQUEEZED BY PRICE CONTROLS OR OTHER COSTCURBING MEASURES UNDER HEALTHCARE REFORM LEGISLATION MERCK WILL CONTINUE DOING BREAKTHROUGH RESEARCH NO MATTER WHAT HE SAID HE SAID THAT THE COMPANY'S PIONEERING SUCCESS IN PHARMACEUTICAL MANAGED CARE WILL ENABLE IT TO FUND SUCH SCIENCE 9402140097 940214 INTERNATIONAL BRIEF LLOYDS BANK PLC PRETAX PROFIT ROSE 29 IN '93 ON LOWER DEBT PROVISIONS LLOYDS BANK PLC REPORTED THAT PRETAX EARNINGS FOR 1993 ROSE 29 AS THE BANK FURTHER REDUCED PROVISIONS FOR BAD AND DOUBTFUL DEBT CONTAINED COSTS AND BENEFITED FROM AN IMPROVING ECONOMY IN THE UNITED KINGDOM PRETAX PROFIT ROSE TO 103 BILLION 151 BILLION THE DIVIDEND WAS INCREASED 20 TO 221 PENCE A SHARE FROM 184 PENCE THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS DURING 1993 LLOYDS LOWERED ITS PROVISION FOR BAD AND DOUBTFUL DEBT BY 9 TO 503 MILLION FOR 1993 IT ALSO CUT ITS WORK FORCE BY 2000 LAST YEAR BRINGING THE TOTAL REDUCTION OVER THE PAST FOUR YEARS TO MORE THAN 18000 CHAIRMAN SIR ROBIN IBBS SAID THE BANK REMAINS WATCHFUL FOR WAYS TO MAKE USE OF ITS CAPITAL GROWTH INCLUDING POSSIBLE ACQUISITIONS 9402140096 940214 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 3/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 335 30 TO 59 DAYS 340 60 TO 89 DAYS 345 90 TO 119 DAYS 348 120 TO 149 DAYS 350 150 TO 179 DAYS 355 180 TO 249 DAYS 360 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 342 30 DAYS 348 60 DAYS 352 90 DAYS CERTIFICATES OF DEPOSIT 272 ONE MONTH 278 TWO MONTHS 283 THREE MONTHS 301 SIX MONTHS 330 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 341 THREE MONTHS 359 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 334 60 DAYS 337 90 DAYS 343 120 DAYS 348 150 DAYS 355 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/8 3 1/4 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 3/8 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 591 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 7 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 324 13 WEEKS 340 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 708 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS 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 9402140095 940214 BUSINESS BRIEF ARC INTERNATIONAL CORP PUBLIC OFFERING IS PLANNED FOR COMPANY'S CABLETEL UNIT ARC INTERNATIONAL CORP TORONTO EXPECTS TO RAISE BETWEEN 10 MILLION CANADIAN DOLLARS AND C12 MILLION US74 MILLION TO US89 MILLION FROM AN INITIAL PUBLIC OFFERING OF A ITS CABLETELEVISION EQUIPMENT SUBSIDIARY THE COMPANY'S UNDERWRITER SAID A SPOKESMAN FOR RESEARCH CAPITAL CORP THE LEAD UNDERWRITER SAID THE DIVERSIFIED MANUFACTURER PLANS TO SELL BETWEEN 40 AND 50 OF THE SUBSIDIARY CABLETEL COMMUNICATIONS CORP THROUGH THE OFFERING CABLETEL HAD REVENUE LAST YEAR OF C34 MILLION ARC SAID PROCEEDS WILL BE USED TO REDUCE DEBT AND FOR OTHER CORPORATE PURPOSES 9402140094 940214 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT GTE NORTH INC 200 MILLION OF FIVEYEAR NOTES VIA COMPETITIVE BID ABT BUILDING PRODUCTS CORP 2 MILLION SHARES VIA MERRILL LYNCH & CO 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 AMERICAN SUPERCONDUCTOR CORP 1 MILLION SHARES VIA CS FIRST BOSTON AND INVEMED AMPHENOL CORP ABOUT 77 MILLION SHARES VIA MERRILL LYNCH CIRRUS LOGIC INC 31 MILLION SHARES VIA GOLDMAN SACHS & CO CONCORD HOLDING CORP INITIAL 21 MILLION SHARES VIA BEAR STEARNS & CO AND MONTGOMERY SECURITIES PRT FUNDING CORP 85 MILLION OF 10YEAR SENIOR NOTES VIA SALOMON BROTHERS INC GLOBAL PRIVATIZATION FUND INITIAL 4 MILLION SHARES VIA KIDDER PEABODY & CO HARVEY'S CASINO RESORT INITIAL 29 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SALOMON BROTHERS MARTIN MARIETTA MATERIALS INC INITIAL 77 MILLION SHARES VIA MORGAN STANLEY & CO MORGAN STANLEY INDIA INVESTMENT FUND INITIAL 4 MILLION SHARES VIA MORGAN STANLEY REDMAN INDUSTRIES 13 MILLION SHARES VIA DILLON READ & CO REPUBLIC OF COLOMBIA 250 MILLION OF 10YEAR NOTES VIA MERRILL LYNCH XPEDITE SYSTEMS INC INITIAL 2 MILLION SHARES VIA PRUDENTIAL SECURITIES INC OHIO PUBLIC FACILITIES COMMISSION 253 MILLION OF HIGHEREDUCATION CAPITALFACILITIES REVENUE BONDS VIA COMPETITIVE BID ONTARIO DEVELOPMENT AGENCY CALIF 1337 MILLION OF TAX AND REVENUE ANTICIPATION NOTES TAXABLE VIA COMPETITIVE BID MARYLAND 1645 MILLION OF GENERAL OBLIGATION BONDS VIA COMPETITIVE BID SAN FRANCISCO CITY AND COUNTY 1758 MILLION OF SERIES 1994 SEWER REVENUE REFUNDING BONDS VIA COMPETITIVE BID MASSACHUSETTS BAY TRANSPORTATION AUTHORITY 185 MILLION OF NOTES VIA COMPETITIVE BID ILLINOIS STUDENT ASSISTANCE COMMISSION 135 MILLION OF BONDS VIA A PAINEWEBBER INC GROUP MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 107 MILLION OF BONDS VIA A CS FIRST BOSTON GROUP NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 1465 MILLION OF SERIES 1994A BONDS VIA A WR LAZARD LAIDLAW & MEAD INC GROUP PHOENIX CIVIC IMPROVEMENT CORP ARIZ 110 MILLION OF JUNIORLIEN WATER SYSTEM REVENUE BONDS VIA A PRUDENTIAL SECURITIES GROUP SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY NY 1909 MILLION OF BONDS VIA A DILLON READ GROUP VIRGINIA EDUCATION LOAN AUTHORITY 1401 MILLION OF BONDS VIA A SMITH BARNEY SHEARSON INC GROUP 9402140093 940214 BUSINESS BRIEF HARKEN ENERGY CORP PLANNED ASSET SALE TO RESULT IN FOURTHQUARTER CHARGE HARKEN ENERGY CORP SAID IT WILL TAKE A NONCASH FOURTHQUARTER CHARGE OF 31 MILLION TO WRITE DOWN CERTAIN ASSETS IT PLANS TO SELL THE DALLAS ENERGY CONCERN SAID IT WILL LIQUIDATE SOME IDLE DRILLING RIGS AND RELATED EQUIPMENT AND USE THE PROCEEDS IN ITS INTERNATIONAL OPERATIONS IN BAHRAIN AND COLOMBIA THE PLANNED SALES DON'T INVOLVE HARKEN'S SUPREME WELL SERVICE OPERATIONS IN TEXAS HARKEN SAID FOR THE 1992 FOURTH QUARTER HARKEN REPORTED NET INCOME OF 806000 OR ONE CENT A SHARE INCLUDING A TAX BENEFIT OF 172000 REVENUE FOR THAT QUARTER WAS 25 MILLION 9402140092 940214 SEC IS REVIEWING LEGAL FEES REQUESTED IN PRUDENTIAL SECURITIES CLASS ACTION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION LOOKING TO CRACK DOWN ON CLASSACTION ABUSES IS REVIEWING THE LEGAL FEES REQUESTED IN A BIG PRUDENTIAL SECURITIES INC PARTNERSHIP CASE THE SEC IS EXAMINING THE CIRCUMSTANCES SURROUNDING THE FEE REQUEST BY PLAINTIFFS' LAWYERS IN A 907 MILLION SETTLEMENT REACHED LAST MONTH BETWEEN 115000 INVESTORS WHO BOUGHT ENERGY LIMITEDPARTNERSHIPS FROM THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER PLAINTIFFS' LAWYERS STAND TO RECEIVE AS MUCH AS 27 MILLION IN FEES IN THE CASE THE REVIEW FOLLOWS CLOSELY SEC CHAIRMAN ARTHUR LEVITT'S RECENT SPEECH IN WHICH HE TOLD SECURITIES LAWYERS HE WAS CONCERNED ABOUT CLASSACTION ABUSES CRITICS SAY CLASSACTION LAWYERS SOMETIMES POCKET FAT FEES FOR RELATIVELY LITTLE WORK SOME RECENT CLASSACTION SETTLEMENTS INVOLVING BIG BROKERAGE FIRMS HAVE BEEN ASSAILED AS SELLOUTS REAPING ONLY PENNIES ON THE DOLLAR FOR CLAIMANTS THE SEC DECLINED TO COMMENT BUT THE PEOPLE FAMILIAR WITH THE MATTER SAID ITS INTEREST WAS TRIGGERED BY CRITICISM OF THE PRUDENTIAL SETTLEMENT BY CALIFORNIA SECURITIES REGULATORS IN A LETTER SENT LAST WEEK TO THE FEDERAL JUDGE OVERSEEING THE PRUDENTIAL CASE CALIFORNIA SECURITIES DIRECTOR GARY MENDOZA SAID THE CLASSACTION LAWYERS DIDN'T DESERVE TO BASE THEIR FEES ON THE 90 MILLION SETTLEMENT IN THE CASE BECAUSE THEY DIDN'T PLAY A BIG ROLE IN CRAFTING THE ACCORD INDEED MR MENDOZA SAID THE LAWYERS BATTLED WITH STATE REGULATORS OVER AN EARLIER SETTLEMENT PROPOSAL BY PRUDENTIAL THE EARLIER OFFER FOR JUST 37 MILLION IN CASH SPARKED CRITICISM BY STATE REGULATORS BUT WAS BACKED BY MANY CLASSACTION LAWYERS MARCEL LIVAUDAIS JR A FEDERAL JUDGE IN NEW ORLEANS OVERSEEING THE CASE HAD SAID HE HAD SERIOUS RESERVATIONS ABOUT THE INITIAL SETTLEMENT PROPOSAL IN THE CASE THE LAWSUIT ACCUSED PRUDENTIAL OF MISLEADING INVESTORS ON THE RISK AND RETURNS OF 145 BILLION IN ENERGY PARTNERSHIPS WHOSE VALUE HAD SINCE SLUMPED IN HALF IT IS FUNDAMENTALLY UNFAIR TO THE INJURED INVESTORS TO ALLOW THE CLASSACTION LAWYERS WHO SUPPORTED THE 37 MILLION SETTLEMENT TO BENEFIT IN ANY WAY FROM THE EFFORTS OF STATE SECURITIES REGULATORS MR MENDOZA'S LETTER SAID THEIR EFFORTS MADE LITTLE IF ANY REAL CONTRIBUTION TO THE SUBSTANTIAL INCREASE IN THE SETTLEMENT MR MENDOZA URGED JUDGE LIVAUDAIS TO BASE THE LEGAL FEES ON THE 37 MILLION SETTLEMENT PROPOSAL WHICH WOULD SEND A STRONG SIGNAL TO THE CLASSACTION BAR THAT IF THEY ARE TO EARN THEIR FEES IT IS CRITICAL THAT THE ONLY INTEREST THEY SERVE DURING A CLASSACTION LITIGATION IS THEIR CLIENTS' EDWARD GROSSMAN LEAD CLASSACTION LAWYER IN THE PRUDENTIAL CASE COULDN'T BE REACHED TO COMMENT FOR THEIR PART SOME PLAINTIFFS' LAWYERS SAY THEY WERE PIVOTAL IN HELPING TO TRIGGER A SALE OF THE PRUDENTIAL ENERGY PARTNERSHIPS IN JUNE TO PARKER & PARSLEY PETROLEUM CO INVESTORS RECEIVED 491 MILLION FROM THE PARKER & PARSLEY TRANSACTION THE SALE COUPLED WITH THE 90 MILLION SETTLEMENT AND DISTRIBUTIONS ALREADY PAID OUT BOOSTED TO 124 BILLION OR AN AVERAGE OF 85 CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL 145 BILLION OUTLAY THIS WAS A CASE WITH GREAT RISK AND COULD HAVE RESULTED IN NO RECOVERY AT ALL SAYS CLINTON KRISLOV A PLAINTIFFS' LAWYER IN CHICAGO WHO HAD OBJECTED TO THE INITIAL PRUDENTIAL SETTLEMENT OFFER BUT BACKED THE RECENT ACCORD ALL THE PLAINTIFFS' ATTORNEYS AGREED THE FEES WOULD BE NO MORE THAN 30 OF THE SETTLEMENT LAWYERS TYPICALLY RECEIVE BETWEEN 25 AND ONETHIRD OF RECOVERIES MEANWHILE ANOTHER PENDING CLASSACTION SETTLEMENT IS SURE TO ATTRACT THE SEC'S ATTENTION THE PEOPLE SAID THAT'S A 6 MILLION CASHSETTLEMENT PROPOSAL IN A CLASSACTION CASE FILED IN A CHICAGO FEDERAL COURT BY 16500 MERRILL LYNCH & CO INVESTORS IN ARVIDA/JMB PARTNERS LPII A 234 MILLION PARTNERSHIP THAT BOUGHT RAW LAND TO DEVELOP HOMES MERRILL INVESTORS HAVE RECEIVED JUST 20 IN DISTRIBUTIONS FOR EACH 1000 UNIT SINCE THE ARVIDA PARTNERSHIP WAS LAUNCHED IN 1989 AND AN APRIL NOTICE TO INVESTORS SAID IT APPEARS UNLIKELY THAT THE LIMITED PARTNERS WILL RECOVER MUCH IF ANY OF THEIR CAPITAL INVESTMENT IN THE PARTNERSHIP UNDER THE ARVIDA ACCORD INVESTORS WOULD RECEIVE ABOUT 4 MILLION AFTER LEGAL FEES OR JUST PENNIES ON THE DOLLAR BOTH MERRILL AND BEIGEL & SANDLER A CHICAGO LAW FIRM THAT FILED THE CLASSACTION CASE SAY THEY BELIEVE THE ARVIDA SETTLEMENT IS FAIR A FEDERAL JUDGE IS EXPECTED TO SOON RULE ON THE PROPOSAL INVESTORS HAD LESS THAN A MONTH TO DECIDE WHETHER OR NOT TO OPT OUT OF THE SETTLEMENT ACCORD INCLUDING TIME DURING THE THANKSGIVING HOLIDAY 9402140091 940214 TECHNOLOGY BRIEF GENERAL INSTRUMENT CORP ZENITH PACT IS SET TO SHARE LICENSING OF TECHNOLOGIES GENERAL INSTRUMENT CORP CHICAGO SAID IT ENTERED A CROSSLICENSING AGREEMENT FOR DIGITAL TECHNOLOGIES WITH ZENITH ELECTRONICS CORP TERMS WEREN'T DISCLOSED GENERAL INSTRUMENT WILL LICENSE ITS DIGICIPHER BRAND ACCESS CONTROL DIGITAL COMPRESSION AND TRANSMISSION TECHNOLOGIES TO ZENITH DIGICIPHER CONVERTS ANALOG TELEVISION SIGNALS INTO DIGITAL SIGNALS THEN SQUEEZES THE SIGNALS TO AS LITTLE AS ONETENTH THEIR ORIGINAL SIZE ENABLING THE USER TO SEND OR RECEIVE MANY MORE SIGNALS OVER LESS SPACE ZENITH WILL LICENSE TO GENERAL INSTRUMENT ITS VSB TRANSMISSION TECHNOLOGY WHICH EXPANDS THE CAPABILITIES OF DIGITAL CABLETV SYSTEMS BEYOND 500 CHANNELS TO 1000 GENERAL INSTRUMENT DEVELOPS AND MAKES BROADBAND TRANSMISSION DISTRIBUTION AND ACCESSCONTROL TECHNOLOGIES FOR CABLE SATELLITE AND TERRESTRIAL BROADCASTING APPLICATIONS ZENITH BASED IN GLENVIEW ILL IS A CONSUMERELECTRONICS CABLE AND NETWORKINGPRODUCTS COMPANY 9402140090 940214 ROGERS MAKES BID TO ACQUIRE MACLEAN HUNTER BIG CANADIAN CABLE CONCERN OFFERS 208 BILLION CASH FOR REMAINDER OF STOCK BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROGERS COMMUNICATIONS INC LAUNCHED ITS LONGAWAITED BID TO ACQUIRE MACLEAN HUNTER LTD OFFERING 279 BILLION CANADIAN DOLLARS US208 BILLION FOR THE SHARES OF THE TORONTOBASED CABLE TELEVISION BROADCASTING AND PUBLISHING CONCERN THAT IT DOESN'T ALREADY OWN ROGERS SAID IT IS OFFERING C17 A SHARE IN CASH AND ONE PARTICIPATION RIGHT FOR EACH SHARE OF MACLEAN HUNTER THE RIGHTS ALLOW RECIPIENTS TO RECEIVE ABOUT 92 OF THE NET PROCEEDS FROM THE SALE OF MACLEAN HUNTER'S US CABLETELEVISION ASSETS IN EXCESS OF C15 BILLION IF ROGERS SUCCEEDS IN ACQUIRING MACLEAN HUNTER THE MOVE WOULD CONSOLIDATE ITS POSITION AS CANADA'S LARGEST CABLETELEVISION OPERATOR THE MACLEAN HUNTER CABLE SYSTEMS WOULD INCREASE ROGERS' SUBSCRIBERS TO A THIRD OF THOSE CANADIAN HOUSEHOLDS WITH CABLE FROM ABOUT A QUARTER CURRENTLY BUT ROGERS STILL HAS A NUMBER OF HURDLES TO CLEAR FIRST AND FOREMOST IS MACLEAN HUNTER'S RESPONSE TO ITS OFFER BECAUSE THE BID IS OPEN ONLY UNTIL MARCH 15 IT DOESN'T MEET THE CRITERIA OF A SOCALLED PERMITTED BID UNDER THE TERMS OF MACLEAN HUNTER'S SHAREHOLDERRIGHTS PLAN TO BE A PERMITTED BID THE OFFER MUST REMAIN OPEN FOR AT LEAST 120 DAYS EDWARD S TED ROGERS PRESIDENT AND CHIEF EXECUTIVE OF ROGERS COMMUNICATIONS SAID HE IS PREPARED TO CHALLENGE THE RIGHTS PLAN IN COURT IF MACLEAN HUNTER DECIDES TO TRIGGER THE POISON PILL AND ALLOW SHAREHOLDERS TO EXERCISE RIGHTS TO ACQUIRE NEW SHARES OF THE COMPANY AT A 50 DISCOUNT TO MARKET VALUE MAKING A TAKEOVER PROHIBITIVELY EXPENSIVE RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAYS THE COMPANY IS EXAMINING ALL OF OUR OPTIONS HE DECLINED TO ELABORATE BUT CONFIRMED THE COMPANY IS IN TALKS ABOUT SELLING SOME OF ITS ASSETS MACLEAN HUNTER HAS BEEN SEEKING A BUYER FOR ITS US CABLE ASSETS SINCE LATE LAST YEAR A PROCESS THAT HAS ACCELERATED SINCE ROGERS DISCLOSED ITS INTEREST IN MACLEAN HUNTER TWO WEEKS AGO BUT MACLEAN HUNTER ALSO COULD SEEK OUT BUYERS FOR SOME OF ITS CANADIAN BROADCASTING AND PUBLISHING ASSETS MAKING IT A MUCH LESS ATTRACTIVE ACQUISITION ANALYSTS SAY THERE IS LITTLE LIKELIHOOD OF A COMPETING OFFER EMERGING FOR MACLEAN HUNTER AS A WHOLE CANADIAN LAW RESTRICTS FOREIGN OWNERSHIP OF MEDIA CONCERNS TO 20 CONSIDERABLY LIMITING THE FIELD OF PROSPECTIVE BIDDERS ON THE WHOLE IT LOOKS AS THOUGH THERE'S BETTER VALUE THERE FOR THE SHAREHOLDERS WITH THE ROGERS BID THAN IN SELLING THE COMPANY OFF PIECEMEAL SAID CARLA LARSON AN ANALYST WITH BUNTING WARBURG INC IN TORONTO MOREOVER MR ROGERS TOLD ANALYSTS AT AN INVESTORS' CONFERENCE FRIDAY THAT INCREASED CONCENTRATION IN THE CANADIAN CABLETELEVISION INDUSTRY IS NECESSARY TO FEND OFF COMPETITIVE THREATS FROM TELEPHONE COMPANIES AND US DIRECTBROADCAST SATELLITES WHICH ARE LIKELY TO GIVE CANADIANS ACCESS TO HUNDREDS OF CHANNELS IN THE NEAR FUTURE WE HAVE TO HAVE A MULTIMEDIA COMPANY THAT CAN COMPETE AROUND THE WORLD MR ROGERS SAID IF WE'RE ALL SMALL AND TIMID IN THIS COUNTRY WE'LL ALL BE OVERWHELMED MR ROGERS IS ADAMANT THAT C17 A SHARE IS HIS TOP OFFER IF SOMEONE COMES AND BIDS SOME CRAZY PRICE THEY CAN TAKE IT HE SAID NOTING THAT MACLEAN HUNTER SHARES HAD TRADED AT AROUND C12 FOR SEVERAL YEARS BEFORE ROGERS DISCLOSED ITS INTEREST IN TORONTO STOCK EXCHANGE TRADING FRIDAY MACLEAN HUNTER CLOSED AT C17375 A SHARE UP 375 CANADIAN CENTS ROGERS CLASS B SHARES JUMPED TO C21 UP C1 IN TORONTO STOCK EXCHANGE TRADING FRIDAY THEY HAD FALLEN IN RECENT DAYS AFTER ROGERS SAID IT MIGHT OFFER STOCK AS WELL AS CASH FOR MACLEAN HUNTER MR ROGERS SAID MACLEAN HUNTER SHAREHOLDERS COULD REALIZE ADDITIONAL VALUE FROM THE PARTICIPATION RIGHTS BUT MS LARSON PUT THE MAXIMUM VALUE OF EACH RIGHT AT 40 CANADIAN CENTS ADDING THAT FINANCING COSTS AND CAPITALGAINS TAXES COULD REDUCE NET PROCEEDS FROM A SALE OF THE US CABLE ASSETS ROGERS SAID ITS BID IS CONDITIONAL ON AT LEAST TWOTHIRDS OF MACLEAN HUNTER SHARES BEING TENDERED AND ON MACLEAN HUNTER NOT ENTERING INTO ANY AGREEMENT TO SELL ITS US CABLETELEVISION ASSETS IT ALSO NEEDS APPROVAL FROM COMMUNICATIONS AND ANTITRUST REGULATORS IN BOTH CANADA AND THE US REGULATORS MIGHT TAKE A YEAR TO REVIEW THE DEAL AND COULD INSIST THAT ROGERS DISPOSE OF SOME OF MACLEAN HUNTER'S CANADIAN ASSETS ANALYSTS SAY ROGERS SAID IT SOLD C270 MILLION OF A NEW CLASS OF CONVERTIBLE PREFERRED SHARES TO MR ROGERS IN EXCHANGE FOR C651 MILLION IN CASH AND THE 149 MILLION COMMON SHARES OF MACLEAN HUNTER THAT MR ROGERS ALREADY HELD MARK HEINZL CONTRIBUTED TO THIS ARTICLE 9402140089 940214 BUSINESS BRIEF HORIZON HEALTHCARE CORP ACQUISITION IS COMPLETED OF GREENERY REHABILITATION HORIZON HEALTHCARE CORP COMPLETED ITS ACQUISITION OF GREENERY REHABILITATION GROUP INC AFTER REACHING AN ACCORD WITH REGULATORS WHO WERE CONCERNED ABOUT HORIZON'S RECORD OF PATIENT CARE NURSINGHOME OPERATOR HORIZON ALBUQUERQUE NM PAID 471 MILLION IN STOCK FOR GREENERY WHICH HAS 20 REHABILITATION HOSPITALS HORIZON ALSO ASSUMED 547 MILLION IN GREENERY DEBT IN DECEMBER MASSACHUSETTS REGULATORS MOVED TO DELAY THE TRANSACTION CITING INSTANCES OF PATIENT MISTREATMENT AT HORIZON FACILITIES IN OHIO GREENERY IS BASED IN NEWTON MASS HORIZON SAID FRIDAY IT AGREED TO SET UP A SPECIAL MANAGEMENT TEAM THAT WILL MONITOR HORIZON'S PATIENT CARE IN MASSACHUSETTS FOR 18 MONTHS AND PROVIDE MONTHLY REPORTS TO THE STATE GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HORIZON CLOSED AT 23 A SHARE UNCHANGED GREENERY CLOSED AT 5 A SHARE DOWN 125 CENTS HORIZON HEALTHCARE CORP WILL PAY GREENERY REHABILITATION GROUP INC SHAREHOLDERS 025 SHARE OF HORIZON STOCK FOR EACH GREENERY SHARE HELD AN ARTICLE YESTERDAY INCORRECTLY STATED THAT GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE 9402140088 940214 WHAT'S NEWS WORLDWIDE A SHAKY TRUCE HELD IN SARAJEVO AND THE UN TOOK CONTROL OF SOME WEAPONS ALTHOUGH BOSNIAN SERBS OFFICIALLY HAVE REJECTED A NATO ULTIMATUM TO WITHDRAW THEIR HEAVY WEAPONS BY NEXT SUNDAY OR FACE AIR STRIKES THEY HAD TURNED OVER 26 HEAVY GUNS TO UN FORCES BY YESTERDAY AND GOVERNMENT TROOPS SURRENDERED 10 WEAPONS IN ADDITION MOST SERB GUNS HAVE REMAINED SILENT SINCE LAST THURSDAY ONE ARTILLERY ROUND WAS FIRED YESTERDAY IN THE BOSNIAN CAPITAL WITH NO INJURIES REPORTED DEPENDENTS OF US DIPLOMATS WERE PULLED OUT OF BELGRADE AS A PRECAUTION AGAINST POSSIBLE SERB REPRISALS IN THE EVENT OF WESTERN AIR STRIKES THE WHITE HOUSE IS CONSIDERING CUTTING 2 BILLION IN BENEFITS FOR ELDERLY IMMIGRANTS TO HELP PAY FOR WELFARE REFORM OFFICIALS SAID WHILE CUTTING OFF SUPPLEMENTALSECURITYINCOME BENEFITS TO THE PARENTS OF LEGAL ALIENS IS HIGH ON THE ADMINISTRATION'S LIST CUTS ALSO COULD COME IN EMERGENCYHOUSING ASSISTANCE PENTAGON OFFICIALS ARE WEIGHING A PLAN TO SELL A LARGE PART OF THE US MILITARY'S COLD WAR INVENTORY OF HIGHPERFORMANCE WEAPONS TO OTHER COUNTRIES UNDER THE PLAN THE PENTAGON WOULD SELL CERTAIN JETS SHIPS AND ARMORED VEHICLES AND USE THE PROCEEDS TO PURCHASE NEWER VERSIONS OF THE SAME WEAPONS SEN KAY BAILEY HUTCHISON WAS ACQUITTED ON STATE ETHICS CHARGES JUST AFTER HER TRIAL BEGAN FRIDAY A JUDGE IN FORT WORTH ORDERED THE TEXAS REPUBLICAN ACQUITTED WHEN PROSECUTORS REFUSED TO PRESENT THEIR CASE WITHOUT AN ADVANCE RULING ON WHETHER THEY COULD USE EVIDENCE THAT WAS SEIZED DURING A RAID SOMALI GUNMEN AMBUSHED A UN CONVOY IN MOGADISHU AND KILLED AN EGYPTIAN SOLDIER WHILE TWO ITALIAN AID WORKERS WERE KIDNAPPED IN CENTRAL SOMALIA AND WERE HELD FOR RANSOM MEANWHILE WEEKEND BATTLES BETWEEN CLANS IN SOUTHERN SOMALIA KILLED 60 PEOPLE AND FORCED MORE THAN 5000 TO FLEE THE PORT OF KISMAYU A CLAN SPOKESMAN SAID ZULU LEADER BUTHELEZI TOLD HIS SUPPORTERS TO PREPARE THEMSELVES FOR CASUALTIES AND EVEN DEATH FOLLOWING A DECISION BY HIS INKATHA FREEDOM PARTY TO BOYCOTT SOUTH AFRICA'S FIRST ALLRACE ELECTIONS IN APRIL BUTHELEZI ACCUSED THE RIVAL AFRICAN NATIONAL CONGRESS OF STARTING A CAMPAIGN OF ETHNIC CLEANSING AGAINST HIS PEOPLE THIEVES IN OSLO ESCAPED WITH ONE OF THE WORLD'S MOST FAMOUS PAINTINGS THE SCREAM BY EDVARD MUNCH AFTER USING A LADDER TO CLIMB THROUGH A WINDOW OF THE NATIONAL ART MUSEUM TWO MEN FILMED BY SURVEILLANCE CAMERAS ENTERED THE MUSEUM EARLY SATURDAY AND GRABBED THE 1893 PAINTING THE THEFT TOOK LESS THAN A MINUTE SKATER TONYA HARDING WILL BE ALLOWED TO COMPETE IN THE OLYMPICS UNDER AN ACCORD REACHED SATURDAY THE US OLYMPIC COMMITTEE HAS CANCELED A HEARING TO CONSIDER WHETHER TO LET HARDING SKATE AND HER SUIT AGAINST THE PANEL HAS BEEN DISMISSED HARDING FACES ALLEGATIONS THAT SHE WAS INVOLVED IN AN ATTACK ON RIVAL NANCY KERRIGAN A CONTRABAND FUEL SHIPMENT EXPLODED IN PORTAUPRINCE DESTROYING THE HAITIAN CAPITAL'S MAIN CENTER FOR ILLEGALLY IMPORTED GASOLINE THE FIRE DEMOLISHED UP TO A DOZEN HOMES AND BUSINESSES BUT NO CASUALTIES WERE REPORTED DIPLOMATS SAID THERE HAS BEEN A RECENT INCREASE IN FUEL SMUGGLING FROM THE DOMINICAN REPUBLIC PALESTINIAN ASSAILANTS FIRED AT A CAR CARRYING ISRAELI SECURITY AGENTS IN THE OCCUPIED WEST BANK KILLING ONE PERSON AND INJURING TWO AUTHORITIES SAID ISRAELI ARMY OFFICIALS IMMEDIATELY CLAMPED A CURFEW ON THE VILLAGES OF BEITUNIYA AND RAMALLAH AND CUT OFF ELECTRICAL POWER IN A NEARBY REFUGEE CAMP EL AMARI MEXICAN PEASANT NEGOTIATORS HAVE BEGUN LEAVING THEIR REMOTE JUNGLE HIDEOUTS TO ATTEND PEACE TALKS AIMED AT ENDING A 44DAYOLD UPRISING IN THE SOUTHERN STATE OF CHIAPAS A GOVERNMENT PEACE ENVOY SAID THE TALKS WHICH ORIGINALLY WERE TO HAVE STARTED A WEEK AGO HAVE BEEN DELAYED BY LOGISTICAL PROBLEMS AND SECURITY CONCERNS THOUSANDS OF LIBERIANS HAVE FLED FROM THEIR VILLAGES AND CONVERGED ON A SEAPORT BUCHANAN IN AN ATTEMPT TO ESCAPE KILLINGS AND LOOTING BY RIVAL INSURGENT GROUPS IN THE WEST AFRICAN COUNTRY CLASHES HAVE INTENSIFIED OVER THE PAST FEW WEEKS BETWEEN CHARLES TAYLOR'S GUERRILLA MOVEMENT AND A REBEL SPLINTER GROUP 9402140087 940214 BUSINESS BRIEF AMOCO CORP CHANGES IN MARKETING GROUP TO TRIM UP TO 600 POSITIONS AMOCO CORP SAID A REORGANIZATION OF ITS AMOCO OIL CO MARKETING GROUP WILL RESULT IN THE ELIMINATION OF AS MANY AS 600 JOBS THE CHICAGO OIL COMPANY SAID THE MOVE IS DESIGNED TO IMPROVE CUSTOMER SERVICE AND TO CUT CERTAIN COSTS AMOCO OIL THE COMPANY'S REFINING MARKETING AND TRANSPORTATION SUBSIDIARY HAS 6000 EMPLOYEES THE REORGANIZATION COULD REMOVE 6 TO 10 OF THOSE WORKERS AN AMOCO SPOKESMAN SAID A MAJOR BENEFIT OF THE ORGANIZATION ALIGNMENT WILL BE FOCUSED BETTERDEFINED JOB RESPONSIBILITIES SAID ROBERT J RAUSCHER AMOCO OIL'S VICE PRESIDENT FOR MARKETING AS PART OF THE REORGANIZATION AMOCO WILL SHIFT TO A BRANDMANAGEMENT APPROACH SIMILAR TO THAT OF LARGE CONSUMERPRODUCT COMPANIES BUT RARE FOR OIL COMPANIES 9402140086 940214 LEISURE & ARTS BOOKSHELF PRODIGAL SON GROWS UP AT LAST BY BROOKE ALLEN MARTIN AMIS HAS FINALLY REACHED MIDDLE AGE IN THE PAST HE HAS BEEN NOTABLE FOR HIS BRASHNESS HIS SCORN AND HIS ABUNDANT VERBAL GIFTS WHICH OFTEN SERVE ONLY TO CONGEST HIS VIGOROUS PROSE MR AMIS'S NOVELS SUCH AS THE RACHEL PAPERS SUCCESS AND OTHER PEOPLE HAVE NOT BEEN TO EVERYONE'S TASTE THOUGH HE HAS LONG BEEN CONSIDERED ONE OF ENGLAND'S BEST YOUNG WRITERS THE KEY WORD IS YOUNG THE BOOKS UNTIL THE RECENT LONDON FIELDS WERE BRILLIANT BUT IMMATURE NOW AT 44 MR AMIS MAKES HIS BID FOR ADULTHOOD WITH A COLLECTION OF ESSAYS VISITING MRS NABOKOV AND OTHER EXCURSIONS CROWN/HARMONY 274 PAGES 20 THE PIECES WERE WRITTEN OVER A PERIOD OF SOME 20 YEARS AND PLACE MR AMIS FIRMLY AT THE MIDLIFE POINT A NOSTALGIC ESSAY ON JOHN LENNON PROCLAIMS HIM AN UNREGENERATE 1960S KID WHILE A COOLER ONE ON A RECENT ROLLING STONES CONCERT REVEALS THE INCIPIENT OLD FOGEY IN THE HIGH TRADITION OF ALL THE BEST POP CONCERTS HE WRITES YOU WERE TREATED AS IF YOU HAD COME TO SATE SOME VILE ADDICTION RATHER THAN SIMPLY TO EXCHANGE CASH FOR ENTERTAINMENT THE COLLECTION AS A WHOLE IS AN UNEVEN ASSORTMENT INCLUDING SOME REALLY EXCELLENT LITERARY INTERVIEWS ANTHONY BURGESS VS PRITCHETT CRITICISM PHILIP LARKIN MADONNA AND INVESTIGATIVE WORK ON INTERNATIONAL CHESS FOR EXAMPLE AND HIGHTECH MOVIEMAKING AS WELL AS A FEW PIECES OF FRIPPERY FOR HIGHPAYING MAGAZINES SUCH AS ESQUIRE MR AMIS WOULD HAVE DONE WELL TO OMIT THIS LAST CATEGORY SUCH FILLER ALONG WITH A FEW PEDESTRIAN EFFORTS SUCH AS HIS INTERVIEW WITH GRAHAM GREENE WHERE GREENE TELLS AMIS ALL TOO TRULY AS YOU SEE I'VE GOT NOTHING NEW TO SAY CHEAPEN WHAT COULD BE A MORE WONDERFUL SLIMMER COLLECTION FOR IF MR AMIS'S MIND IS NOT EXTRAORDINARY IT IS EXCELLENT AND HE DISTINGUISHES HIMSELF MOST IN HIS APPRECIATION OF OTHER WRITERS THE LITERARY INTERVIEW SAYS MR AMIS IS DYING IT WAS WITH DREAD/DETACHMENT/HIGH HOPES THAT I APPROACHED X'S TOWNHOUSE/OFFICE/POTTING SHED THE DOOR OPENED HE IS FATTER/SMALLER/TALLER/BALDER THAN I EXPECTED FORTUNATELY MR AMIS HIMSELF BREATHES NEW LIFE INTO THE CONVENTION AND WHEN DEALING WITH WRITERS FOR WHOM HE FEELS REAL EMPATHY SUCH AS JOHN UPDIKE AND BURGESS HE IS AT HIS BEST EVEN ON AN AVERAGE DAY HOWEVER HE HAS A RATHER UNFAIR ADVANTAGE OVER OTHER INTERVIEWERS IN THAT AS KINGSLEY AMIS'S SON HE GREW UP AROUND MANY OF THE WRITERS HE MAKES HIS SUBJECTS LARKIN AND JG BALLARD HE KNEW INTIMATELY WHILE MR UPDIKE BURGESS AND JOHN BRAINE WERE FRIENDLY ACQUAINTANCES HE THEREFORE HAS MORE ACCESS TO THE INTIMATE UNGUARDED MOMENT THE EASY CONFIDENCE BURGESS FOR INSTANCE GOSSIPS AND DRINKS WITH HIM AND MR BALLARD EMPIRE OF THE SUN LETS DOWN HIS GUARD IT'S VERY DIFFICULT TO REMYTHOLOGISE ONE'S LIFE YOU NEED A NEW SET OF DREAMS LANDSCAPES FORESTS AND WHAT HAPPENS I JUST SIT WITH A WHISKEY AND SODA WATCHING THE ROCKFORD FILES PERHAPS BEST AS AN INTERVIEWER MR AMIS IS ALSO GOOD WHEN WRESTLING WITH THE BIZARRE PHENOMENA OF POPULAR CULTURE A REVIEW OF MADONNA'S SEX FOR WHICH TIME WARNER FLEW HIM BY CONCORDE TO NEW YORK TO EXAMINE THE TOPSECRET GALLEYS SUMS UP THE TOME BY SAYING THAT IT COULD HAVE BEEN ASSEMBLED BY A CORPORATE COMPUTER PORNOGRAPHY RELIGION MULTIETHNICITY TRANSSEXUALITY KITSCH CAMP WORLDLY POWER SELFPARODY AND SELFINVENTION ANOTHER PUBLICITY MACHINE ISAAC ASIMOV IS BRUTALLY DISMISSED WITH A FEW BOMBASTIC EXAMPLES OF HIS INEXHAUSTIBLE ALLCONQUERING SELFLOVE HE TRIES TO TURN HIS AVERAGE COLLECTION OF SHOWBIZ MEMOIRS INTO NABOKOV'S SPEAK MEMORY MR AMIS LAUGHS WHILE IN HIS OCCASIONAL PIECES MR AMIS TENDS TO BE A LITTLE SLICK VISITING MRS NABOKOV CONTAINS A FEW FULLERBODIED ESSAYS THAT SHOW THAT THE AUTHOR HAS INDEED REACHED MATURITY CHESS KASPAROV V KARPOV EXPLORES THE DARK AND DUPLICITOUS WORLD OF TOPLEVEL CHESS AND IS FASCINATING ANOTHER WINNER IS ROBOCOP II A HALFADMIRING HALFDERISIVE ACCOUNT OF MR AMIS'S VISIT TO THE FILM'S SET IN HOUSTON HERE HE EVINCES AN ANTHROPOLOGICAL FLAIR FOR CATCHING THE POSES AND JARGON OF A SELFCONTAINED COMMUNITY ONTHEJOB MOVIEMEN HE SAYS HAVE AN AIR OF EXALTED EXHAUSTION OF PRIESTLY FATIGUE AND HE SMILES AT HOLLYWOOD'S USE OF THE WORD DIGNITY FOR THE PERIOD OF COMMERCIAL SUCCESS THAT THE ROLE OF ROBOCOP HAS PROVIDED FOR ACTOR PETER WELLER IF THE LESSER ARTICLES IN THIS BOOK WATFORD IN CHINA CANNES SNOOKER WITH JULIAN BARNES POKER NIGHT AND OTHERS ARE UNWORTHY OF THE BETTER ONES WHICH INCLUDE A WARY MEASURED INTERVIEW WITH ROMAN POLANSKI AND AN ARTICLE ON THE NUCLEAR MAVENS OF WASHINGTON THAT IS NOT TOO IMPORTANT WHAT IS IMPORTANT IS THAT THE COLLECTION AS A WHOLE ESTABLISHES MARTIN AMIS NOT ONLY AS A FLASHY STYLIST BUT AS A PENETRATING CRITIC MORE SURPRISINGLY IT ESTABLISHES HIM AS A NEWLY ARRIVED MEMBER OF THE OLDER GENERATION HE IS NO LONGER A YOUNG WRITER AND HIS WORK IS THE BETTER FOR IT MS ALLEN IS A FREELANCE WRITER IN HUDSON NY 9402140085 940214 CHRYSLER TO RECALL '94 LH LHS SEDANS ADDING TO A STRING OF RECENT SETBACKS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT ADDING TO A RECENT STRING OF EMBARRASSING QUALITY GLITCHES CHRYSLER CORP WILL ANNOUNCE TODAY A RECALL OF ITS 1994 LH AND LHS SEDANS TO REPAIR FAULTY ELECTRICAL WIRES COMPANY EMPLOYEES WORKING WITH THE PRODUCT SAID THE RECALL COMES ONE WEEK AFTER CHRYSLER ANNOUNCED THAT IT IS RECALLING ALL OF ITS 15000 NEON CARS BUILT SO FAR BUT IT IS THE FIFTH CHRYSLER RECALL IN THE LAST FEW WEEKS THE STRING OF RECALLS COULD UNDERMINE CHRYSLER'S CLAIM THAT IT IS CLOSING THE GAP BETWEEN THE QUALITY OF ITS PRODUCTS AND THAT OF THE BEST JAPANESE AUTO MAKERS THE LATEST RECALL IS TO CORRECT A FLAW IN A NETWORK OF ELECTRICAL WIRES CALLED A WIRING HARNESS THAT COULD SHORT CIRCUIT AND AFFECT THE AUTOMATIC TRANSMISSIONS OF THE DODGE INTREPID CHRYSLER CONCORDE AND CHRYSLER NEW YORKER AND LHS DETAILS OF THE RECALL HADN'T BEEN FULLY WORKED OUT LAST WEEK AND A COMPANY SPOKESMAN SAID CHRYSLER WILL ANNOUNCE THEM TODAY IT IS UNCLEAR WHETHER ALL THE 1994 LHS AND THEIR STRETCHED COUSINS THE LHS AND THE NEW YORKER WILL BE RECALLED ROUGHLY 100000 OF THE VEHICLES HAVE BEEN BUILT SO FAR NO ACCIDENTS OR INJURIES HAVE OCCURRED AS A RESULT OF THE PROBLEM WHICH ONLY OCCURS AFTER EXTENDED WEAR ACCORDING TO THE CHRYSLER EMPLOYEES CHRYSLER HAS BEEN EXPERIMENTING WITH DIFFERENT APPROACHES TO RECALLS INCLUDING GIVING CUSTOMERS FREE TRANSPORTATION OR SMALL GIFTS IN SOME CASES AND CHRYSLER OFFICIALS SAID THE COMPANY WILL MAKE SURE LH CUSTOMERS AREN'T INCONVENIENCED SOME ANALYSTS SAID RECALLS HANDLED QUICKLY AND PROPERLY USUALLY DON'T HURT A COMPANY UNLESS THE COMPANY STONEWALLS OR UNLESS 60 MINUTES' HAS SHOTS OF THE CAR GOING UP IN FLAMES THE CONSUMER USUALLY JUST SHRUGS HIS SHOULDERS SAID RONALD GLANTZ DEAN WITTER'S AUTO ANALYST HOWEVER THE RECENT STRING OF RECALLS COUPLED WITH THE FACT THAT BY SOME MEASURES CHRYSLER PRODUCTS HAVE THE WORST QUALITY RECORD OF ALL BIG THREE VEHICLES IS A MAJOR EMBARRASSMENT COMPANY INSIDERS SAID CHRYSLER IS AIMING THE NEON AT IMPORT BUYERS WHO HAVEN'T CONSIDERED BUYING A BIG THREE VEHICLE NOW WITH THE LH AND LHS RECALL EACH ONE OF CHRYSLER'S VAUNTED RECENT PRODUCTS HAS BEEN RECALLED IN THE PAST FEW WEEKS SOME FOR THE SECOND OR THIRD TIME THE LH CARS HAD ALREADY BEEN RECALLED TWICE SINCE THEIR LAUNCH IN 1992 9402140084 940214 LETTERS TO THE EDITOR IT'S UNFAIR TO COMPARE DEATHS BY CAR VS GUNS THE CDC APPARENTLY IS NOT ABOVE COOKING THE NUMBERS TO FURTHER ITS ANTISELFDEFENSE AGENDA FIREARMS GAIN ON CAR CRASHES AS TOP KILLER JAN 28 COMPARING ALL GUNSHOT DEATHS FROM HOMICIDE SUICIDE AND ACCIDENTS TO DEATHS ONLY FROM AUTOMOBILE ACCIDENTS IS SCIENTIFICALLY DISHONEST AS CITED IN THE ARTICLE ONLY 4 OF GUN DEATHS WERE UNINTENTIONAL AN OBJECTIVE STUDY WOULD HAVE COMPARED ONLY THESE ACCIDENTAL GUN DEATHS 1533 WITH SIMILARLY UNINTENDED AUTO ACCIDENTS 43536 PRODUCING A DRAMATICALLY DIFFERENT RESULT THAN THAT ACHIEVED BY BIASED DATA FURTHER IT IS DECEPTIVE TO EMPHASIZE THE SEVEN JURISDICTIONS 14 WHERE GUN DEATHS EXCEED CAR DEATHS INCLUDING I MIGHT NOTE NEW YORK AND THE DISTRICT OF COLUMBIA THE TWO WITH THE STRICTEST GUN CONTROL MEASURES IN THE NATION INSTEAD OF THE 44 STATES 86 WHERE THE REVERSE IS TRUE INCLUDING STATES WITH FEW OR NO GUNCONTROL LAWS 9402140083 940214 LETTERS TO THE EDITOR OUR CIVIL JUSTICE SYSTEM IS A FARCE IN RESPONSE TO HEATHER RICHARDSON'S JAN 24 EDITORIALPAGE ESSAY BOBBITT A VERDICT THAT KILLS JUSTICE BOBBITT DIDN'T KILL JUSTICE THE SYSTEM DID THAT LONG AGO MS RICHARDSON'S COMMENTARY ON THE LORENA BOBBITT VERDICT IS BASED ON THE NAIVE ASSUMPTION THAT IN THIS COUNTRY THERE ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH ONE ANOTHER SPECIFICALLY REFERRING TO PROCEDURES IN OUR CIVILJUSTICE SYSTEM THAT IS FAR FROM THE TRUTH IT IS APPARENT THAT THE BOBBITT JURY IN PARTICULAR ALREADY KNEW THAT OUR CIVILJUSTICE SYSTEM HAS BECOME A FARCE THAT FOOLS THE MASSES INTO THINKING THERE ARE LEGITIMATE ALTERNATIVES TO SELFHELP THE TRUTH IS THAT OUR CIVILCOURT SYSTEM IS IN A STATE OF COLLAPSE THE ONLY THING THAT ONE CAN BE SURE OF AFTER GETTING INVOLVED WITH IT IS THAT HE OR SHE WILL BE BANKRUPTED BY THE TIME THE CASE IS FINISHED AS A PRACTICING ATTORNEY I HAVE HAD THE MISFORTUNE TO BE INVOLVED IN THE CIVILCOURT SYSTEM BOTH PROFESSIONALLY AND PERSONALLY AND I CAN ATTEST THAT THE SYSTEM DOESN'T WORK LYING UNDER OATH IS RAMPANT IN CIVIL CASES AND MANY ATTORNEYS CONSIDER PERJURY TO BE A LEGITIMATE TRIAL TACTIC THEY ENCOURAGE THEIR CLIENTS TO ADOPT AND WHY NOT EVEN FULLY DOCUMENTED CASES OF WILLFUL PERJURY GO UNPUNISHED BY THE JUDGES WHO BY THEIR REFUSAL TO ENSURE THE INTEGRITY OF THE SYSTEM INVITE THE LAWYERS TO CORRUPT IT IN FACT THE ONLY TIME I EVER SAW A JUDGE GET ANGRY ABOUT PERJURY WAS WHEN I COMPLAINED ABOUT IT AND HIS ANGER WAS WITH ME FOR BRINGING IT UP NOT WITH THE WITNESS WHO LIED OR HIS ATTORNEY WHO DELIBERATELY SUBORNED THE FALSE TESTIMONY ORDINARY PEOPLE WHO SEE WHAT GOES ON IN THIS SYSTEM FREQUENTLY COMMENT THAT IF THEY EVER HAD A SERIOUS PROBLEM THEY WOULD SEEK OUT OTHER METHODS TO TAKE CARE OF IT BEFORE EVER GETTING INVOLVED IN THE CIVILJUSTICE SYSTEM THIS IS ONE ISSUE ON WHICH THE PUBLIC AT LARGE IS A BIG STEP AHEAD OF MS RICHARDSON AND OTHERS WHO EITHER BLINDLY BELIEVE IN THE SYSTEM OR WHO STILL THINK THE PUBLIC IS FOOLED BY IT THE BOBBITT JURY BELIEVED THAT THIS BATTERED WIFE HAD NO REAL ALTERNATIVE TO SELFHELP WITHIN THE SYSTEM AND THAT'S WHAT ITS VERDICT IS BASED ON NOT MISGUIDED COMPASSION AS MS RICHARDSON SUGGESTS IF THERE IS ANYONE LEFT WHO IS NOT CONVINCED THAT OUR SYSTEM OF CRIMINAL JUSTICE HAS GONE 180 DEGREES AWRY IE WHERE IT IS NOW PREFERABLE IN TERMS OF OUTCOME TO BE THE CRIMINAL RATHER THAN THE VICTIM THEY NEED ONLY READ MS RICHARDSON'S ARTICLE TWO FORMER PROSECUTORS HAVE TOLD ME THAT THE DEFENSE'S STRATEGY OF A FIRST ADMITTING MRS BOBBITT'S GUILT IN TERMS OF WHAT LAW WAS BROKEN AND WHO BROKE IT AND B GOING ON TO JUSTIFY THAT GUILT ON THE BASIS OF THE EXACT BRUTALITY CHARGES FOR WHICH MR BOBBITT HAD BEEN PREVIOUSLY TRIED AND ACQUITTED WOULD HAVE BEEN THE VERY PROSECUTION ARGUMENTS EACH OF THEM WOULD HAVE INDEPENDENTLY EMPLOYED HAD THEY BEEN PROSECUTING THIS CASE IT SHOULD NOW BE CRYSTAL CLEAR THAT OUR COURTS WILLINGLY ACCEPT EMOTIONAL CIRCUMSTANCES AS SUFFICIENT JUSTIFICATION AND VINDICATION FOR THE COMMISSION OF CRIMES SUCH AS CRUSHING A STRANGER'S HEAD WITH A BRICK SEVERING THE PENIS OF A TORMENTING HUSBAND AND FOR VIOLENTLY KILLING ONE'S OWN PARENTS HOW DO WE AS A SOCIETY JUSTIFY ON THE ONE HAND EXHIBITING DISTRESS OVER RISING LEVELS OF VIOLENT CRIME WHEN ON THE OTHER HAND WE WORK SO HARD TO REWARD IT 9402140082 940214 CORRECTIONS & AMPLIFICATIONS HUMANA INC IS A LARGE MANAGEDCARE COMPANY IN FRIDAY'S PAGEONE ARTICLE ABOUT HOW THE CLINTONS LOST BIGBUSINESS SUPPORT FOR THEIR HEALTHCARE PLAN HUMANA WAS INCORRECTLY IDENTIFIED AS A HOSPITAL COMPANY MUTUAL FUND SCORECARDS FOR US GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DEC 31 1992 RATHER THAN DEC 31 1993 DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INC THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH 12 MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JAN 31 1994 SEQUENT COMPUTER SYSTEMS INC EXPECTS THAT GROSS PROFIT MARGINS WHICH WERE 48 IN THE FOURTH QUARTER WILL SLIP BY SINGLE DIGITS THIS YEAR AN ARTICLE FRIDAY SAID THE MARGINS WOULD SLIP IN SINGLE DIGITS 9402140080 940214 HEARD ON THE STREET SHARES OF SOME ELECTRONICSECURITY COMPANIES MAY BE A STEAL PARTLY DUE TO PERSISTENT CRIME BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL BUT ONE ANALYST SAYS THE STOCKS OF ALARM COMPANIES WHILE RISKY ARE WORTH CONSIDERING THEY STAND TO BENEFIT FROM BOTH HIGHTECH INNOVATIONS AND UNFORTUNATELY PERSISTENT CRIME POLICE FORCES EVERYWHERE ARE BEING STRAPPED SAYS GEORGE FRAISE OF SMITH BARNEY SHEARSON IN NEW YORK THE PRIVATE SECTOR WILL BE INCREASINGLY RELIED UPON FOR SECURITY OR AT LEAST THE PERCEPTION OF SECURITY MR FRAISE IS A 30YEAROLD ELECTRONICEQUIPMENT ANALYST WHO USUALLY FOLLOWS SUCH GIANTS AS GENERAL ELECTRIC AND WESTINGHOUSE ELECTRIC BUT HE RECENTLY PUBLISHED A SPECIAL REPORT ON ELECTRONIC SECURITY THAT FOCUSES ON FOUR SMALL RELATIVELY NEGLECTED NEW YORK STOCK EXCHANGE ISSUES FOR WHICH HE SEES POTENTIAL HE ISSUED A BUY RECOMMENDATION ON ONLY ONE CHECKPOINT SYSTEMS DESPITE A 64 DROP IN ANNUAL EARNINGS THAT THE NEW JERSEY COMPANY REPORTED LAST WEEK CHECKPOINT'S EARNINGS HAVE BEEN DEPRESSED BY EXPANSION COSTS BUT IT AND SENSORMATIC ELECTRONICS ARE LEADERS IN THE GROWING AREA OF ELECTRONIC ARTICLE SURVEILLANCE ELECTRONIC TAGS ATTACHED TO CLOTHES VIDEOCASSETTES AND OTHER PRODUCTS TO TRIP UP SHOPLIFTERS EVER STEAL A HOTEL TOWEL ONE DAY MOST HOTELS COULD HAVE ALARM TAGS ON THE TOWELS TO NAB YOU SAYS MR FRAISE SENSORMATIC AND CHECKPOINT HE ADDS ARE ALSO POSITIONED TO BENEFIT FROM SOURCE TAGGING OR PUTTING TAGS IN PRODUCTS LIKE COMPACT DISKS DURING MANUFACTURING RETAIL THEFT IS A 30 BILLIONAYEAR PROBLEM EMPLOYEE THEFT IS A 20 BILLIONAYEAR PROBLEM SAYS MR FRAISE WHO CAN TICK OFF JUST ABOUT ANY UGLY CRIME STATISTIC YOU CARE TO KNOW HOUSEHOLD BURGLARY REPRESENTS 5 BILLION IN LOSSES BUT THE FEAR OF CRIME IS EVEN GREATER THAN THAT NUMBER SUGGESTS MR FRAISE SAYS CHECKPOINT IS A SPECULATIVE STOCK ADDING THIS IS NOT FOR GRANDPA TO RETIRE ON BUT HE IS BETTING THE STOCK WILL REBOUND FROM LAST YEAR'S 34 PLUNGE HIS TARGET FOR THE STOCK WHICH CLOSED FRIDAY AT 13 3/8 IS 17 OVER THE NEXT NINE TO 12 MONTHS CHECKPOINT OFFICIALS WEREN'T AVAILABLE TO COMMENT FRIDAY DUE TO THE NORTHEAST'S SNOWSTORM BUT MR FRAISE EXPECTS THE COMPANY TO EARN AT LEAST 51 CENTS A SHARE THIS YEAR A BIG IMPROVEMENT OVER 16 CENTS LAST YEAR POOR EARNINGS HAVE SOURED MANY INVESTORS ON THE STOCK AND HELPED DRIVE DOWN ITS PRICE BUT MR FRAISE SAYS INVESTORS ARE OVERLOOKING THE BEEFEDUP PRODUCT LINES AND SALES FORCE THAT CHECKPOINT HAS BUILT MR FRAISE SAYS SENSORMATIC SHARES ARE LESS OF A RISK BUT HE CAN MUSTER ONLY A NEUTRAL RATING JUDGING THEM TOO PRICEY AT FRIDAY'S FINISH OF 36 5/8 IF IT WAS AT 28 IT'D BE A SCREAMING BUY HE SAYS THE SAME NEUTRAL RATING APPLIES TO TWO ALARMMONITORING STOCKS THAT MR FRAISE IS OPTIMISTIC ABOUT ADT AND AUTOMATED SECURITY HOLDINGS BOTH ADT AND AUTOMATED SECURITY COULD BENEFIT FROM AN EXPECTED CONSOLIDATION AMONG ALARM COMPANIES MANY SMALLER ONES HAVE GONE OUT OF BUSINESS BECAUSE THEY COULDN'T KEEP UP WITH THE TECHNOLOGY PARTICULARLY FOR VERIFICATION SYSTEMS THAT CUT DOWN ON FALSE ALARMS FOR EXAMPLE AUTHORITIES CAN NOW LOOK THROUGH A TINY CAMERA ON A MICROCHIP TO DETERMINE WHETHER A BURGLAR TRIPPED AN ALARM OR JUST A CAT IF THAT KIND OF TECHNOLOGY SOUNDS EXCITING IT'S WORTH MENTIONING AGAIN THAT INVESTORS HAVE BEEN BEATEN IN THE PAST BY ELECTRONICSECURITY SHARES THIS IS NOT A GROUP FOR THE FAINT OF HEART SAYS MR FRAISE THESE STOCKS ARE HIGHLY VOLATILE AND PRONE TO EARNINGS DISAPPOINTMENTS BUT WHAT OTHER INDUSTRY HAS SUCH A STEADY SOURCE OF BUSINESS MAGELLAN GOING SHORT IT COULD HAPPEN IF SHAREHOLDERS APPROVE THE 34 BILLION FIDELITY MAGELLAN FUND THE NATION'S BIGGEST MUTUAL FUND IS SEEKING SHAREHOLDER CONSENT FOR SEVERAL PROPOSALS MOST ARE TECHNICAL BUT ONE IS EYECATCHING IF APPROVED MAGELLAN COULD BE ALLOWED TO SELL STOCKS SHORT OR MAKE BETS THAT THEY WILL DECLINE SOME STATE REGULATIONS RESTRICT SHORTSELLING BY MUTUAL FUNDS BUT IF THOSE RULES ARE EASED IT WOULD BE INTERESTING TO SEE THE IMPACT THAT MIGHTY MAGELLAN COULD HAVE IN SHOOTING DOWN HIGHFLYING STOCKS FIDELITY SAYS THE SHORTSALE PROPOSAL IS ONE OF SEVERAL RULE REVISIONS IT HOPES TO MAKE FOR ALL ITS FUNDS 9402140079 940214 LEISURE & ARTS THE GALLERY AN UNLIKELY ABSTRACTIONIST BY ROGER KIMBALL NEW YORK EVERYONE KNOWS DEGAS HIS BALLERINAS JOCKEYS WOMEN AT THEIR TOILETTE TAUT PSYCHOLOGICAL PORTRAITS OF FRIENDS FAMILY AND LOUCHE CAFE SOCIETY WHEN WE THINK OF HIS WORK WE THINK OF AN INHABITED WORLD A WORLD OF POPULATED INTERIORS UNLIKE THE OTHER IMPRESSIONISTS EDGAR DEGAS 18341917 WAS FIRST OF ALL A STUDIO PAINTER HE RARELY WORKED OUTDOORS AND HIS FORTE WAS THE PORTRAIT THIS PICTURE OF DEGAS IS NOT INACCURATE BUT IT IS INCOMPLETE JUST HOW INCOMPLETE IS SHOWN BY THE REMARKABLE EXHIBITION OF DEGAS'S LANDSCAPES ON VIEW HERE AT THE METROPOLITAN MUSEUM OF ART THROUGH APRIL 3 CULLED FROM SEVERAL PUBLIC AND PRIVATE COLLECTIONS THESE 75 PAINTINGS DRAWINGS AND MONOTYPES MARK THE FIRST EXHIBITION IN A CENTURY TO BE DEVOTED TO THIS LITTLEKNOWN SIDE OF DEGAS'S WORK FOR MOST PEOPLE THE SHOW WILL BE A REVELATION THERE WERE A FEW EXAMPLES OF DEGAS'S LANDSCAPES IN THE HUGE RETROSPECTIVE THAT MADE THE ROUNDS IN 1988 BUT PLACED AMONG THE 400ODD OTHER WORKS IN THAT EXHIBITION THEY SEEMED MORE LIKE BAGATELLES OR AFTERTHOUGHTS THAN FULLY REALIZED WORKS OF ART IN THE PRESENT CONTEXT WE CAN SEE THAT LANDSCAPES PLAYED AN IMPORTANT IF SPORADIC ROLE IN DEGAS'S CAREER FROM HIS APPRENTICE DAYS IN THE 1850S THROUGH THE MATURE YEARS OF THE 1890S THEY ARE LITTLEKNOWN TODAY PRIMARILY BECAUSE THEY ARE NOT THE SORT OF THING WE HAVE COME TO ASSOCIATE WITH THE NAME DEGAS NOT THAT DEGAS EVER THOUGHT OF HIMSELF AS A LANDSCAPE PAINTER IN 1858 HE WENT SO FAR AS TO CONFESS THAT BOREDOM OVERCOMES ME WHEN I AM CONTEMPLATING NATURE YET PERHAPS BECAUSE HE CONSIDERED HIMSELF PRIMARILY A FIGURATIVE PAINTER HIS ARTISTIC HERO WAS THE SEVERE CLASSICIZING INGRES DEGAS FELT MORE FREE TO EXPERIMENT WHEN HE TURNED TO LANDSCAPE WHATEVER THE REASON THIS EXHIBITION SHOWS THAT LANDSCAPES ESPECIALLY THE COLORED MONOTYPES FROM THE 1890S ARE AMONG THE MOST AESTHETICALLY AND TECHNICALLY ADVENTURESOME WORKS IN DEGAS'S OEUVRE THE EXHIBITION OPENS WITH A HANDFUL OF PICTURES THAT DEGAS MADE WHEN ON AN EXTENDED GRAND TOUR OF ITALY FROM 1856 THROUGH 1859 THE BEST OF THESE WORKS INCLUDING ITALIAN LANDSCAPE SEEN THROUGH AN ARCH 1856 ARE HIGHLY ACCOMPLISHED EXERCISES DONE IN THINNED OIL ON PAPER ONE IS IMPRESSED ESPECIALLY WITH DEGAS'S EASY MASTERY OF THE SUNBAKED NEAPOLITAN COLORS THE DIFFERENCE IN MOOD AND HANDLING FROM THE EARLY PORTRAITS THE SELF PORTRAIT OF 1855 FOR EXAMPLE OR HIS EARLY MASTERPIECE PORTRAIT OF THE BELLELLI FAMILY BEGUN IN 1858 COULD NOT BE MORE STRIKING IN THEIR RELAXED PAINTERLINESS AND WARM PALETTE THESE PICTURES ARE WORLD'S AWAY FROM THE ASTRINGENT EXAMPLE OF INGRES THAT DEGAS OTHERWISE SOUGHT TO EMULATE IT'S DIFFICULT TO BELIEVE THAT THE WORKS WERE PRODUCED BY THE SAME ARTIST THE EXHIBITION CONTINUES WITH SOME PENCIL DRAWINGS EQUESTRIAN SCENES AND A FETCHING TRANSLUCENT CEZANNEESQUE WATERCOLOR DONE IN THE 1860S AFTER DEGAS RETURNED TO FRANCE BUT THE MOST MEMORABLE WORK BY FAR FROM THESE EARLY YEARS IS A SUITE OF PASTELS THAT DEGAS DID WHEN HE VISITED THE CHANNEL COAST ON HOLIDAY IN THE SUMMER OF 1869 AS RICHARD KENDALL NOTES IN HIS EXCELLENT CATALOG FOR THE SHOW THESE PICTURES PRESENT A WORLD WITHOUT ANECDOTE CONSISTING OF HORIZONTAL BANDS OF SCUMBLED BROWNS AND MISTY BLUEGRAYS THESE SMALLSCALE WORKS ARE NOT JUST DIFFERENT FROM DEGAS'S FIGURE PAINTINGS THEY ARE THE ANTITHESIS OF THEM ONE CAN PERHAPS CITE LATE TURNER OR THE ROMANTIC LANDSCAPES OF CASPAR DAVID FRIEDRICH AS A PRECEDENT IF NOT EXACTLY AN INSPIRATION FOR THESE WORKS DEGAS HIMSELF SPOKE OF THE MYSTERIOUS MINGLING OF LAND AND WATER BUT THERE IS SOMETHING NOTABLY UNROMANTIC IF NOT INDEED ANTIROMANTIC ABOUT HIS CURIOUSLY DEPOPULATED AND ASCETIC PASTELS AS MR KENDALL OBSERVES DEGAS'S SEASCAPES ARE CONSPICUOUSLY LACKING IN GILDED SUNSETS AND MEANINGFULLY ISOLATED BARQUES HIS SKIES ARE GENERALLY BLANK OR UNTROUBLED AND SUCH BOATS AND FIGURES AS APPEAR IN HIS COMPOSITIONS SEEM HAPHAZARD RATHER THAN POIGNANT IF THERE IS A PRESENCE IN THESE WORKS IT IS THE BROODING PRESENCE OF ABSENCE AND OF ABSTRACTNESS WE ALL KNEW THAT DEGAS WAS WITHOUT EQUAL AMONG THE IMPRESSIONISTS AS A PAINTER OF FIGURES THE CHIEF REVELATION OF THIS EXHIBITION IS HOW ACCOMPLISHED HE WAS AS AN ABSTRACT PAINTER THIS IS HINTED AT IN THE PASTEL SEASCAPES IT BOWLS YOU OVER WHEN YOU SEE THE COLORED MONOTYPES FROM THE 1890S DEGAS HAD STARTED PRODUCING SMALL BLACKANDWHITE MONOTYPES DRAWINGS MADE IN OILY INK AND THEN PRINTED AS HE PREFERRED TO DESCRIBE THEM IN THE LATE 1870S IT WAS A SIMPLE AND RAPID PROCESS AND DEGAS SQUEEZED A NUMBER OF ARRESTING IMAGES FROM THE MEDIUM BUT IT WAS NOT UNTIL OCTOBER OF 1890 WHEN HE VISITED HIS FRIEND PIERREGEORGES JEANNIOT IN BURGUNDY THAT HIS EXPERIMENTS REALLY BORE FRUIT TRAVELING BY OPEN CARRIAGE FROM PARIS DEGAS REGISTERED THE LANDSCAPE WHIZZING BY WITHIN AN HOUR OF REACHING JEANNIOT'S HOUSE HE WAS IN HIS FRIEND'S STUDIO DRAWING FURIOUSLY ON METAL PLATES IN A MEMOIR PUBLISHED IN THE 1930S JEANNIOT RECALLS THE AFTERNOON WE GRADUALLY SAW EMERGING ON THE SURFACE OF THE METAL A VALLEY A SKY WHITE HOUSES FRUIT TREES WITH BLACK BRANCHES BIRCHES AND OAKS RUTS FILLED WITH WATER FROM A RECENT DOWNPOUR ORANGECOLORED CLOUDS SCUDDING ACROSS A TURBULENT SKY ABOVE THE REDANDGREEN EARTH ALL THESE THINGS AMERGED WITHOUT APPARENT EFFORT AS IF HE HAD THE MODEL IN FRONT OF HIM DEGAS PRINTED ONE OR TWO IMPRESSIONS THE SECOND WAS ALWAYS MUCH LIGHTER AND LESS DISTINCT THAN THE FIRST FROM THE INKED PLATE HE THEN FINISHED MOST OF THEM WITH PASTEL ALTOGETHER HE MADE ABOUT 50 LANDSCAPES IN THE SUCCEEDING MONTHS SEVERAL WERE EXHIBITED IN 1892 AT THE GALERIE DURANDRUEL DEGAS'S FIRST SOLO EXHIBITION IT WAS ONE CRITIC WROTE THE MOST EXTRAORDINARY EVENT OF THE SEASON EVEN TODAY THE WORKS IN THAT EXHIBITION SEEM EXTRAORDINARY DEGAS REFERRED TO THESE MONOTYPES AS IMAGINARY LANDSCAPES STEPPING INTO THE ROOM WHERE THEY ARE ON VIEW IS LIKE STEPPING FROM THE 19TH CENTURY INTO THE MID20TH CENTURY ARE THESE NOT EARLY COLORFIELD ABSTRACTIONS A WOODED LANDSCAPE WAS EXECUTED IN 1890 BUT IT COULD BE A TRIAL RUN FOR ROBERT MOTHERWELL'S SPANISH ELEGY SERIES YES SOME OF THESE COLORED MONOTYPES ARE MUDDY AND UNCERTAIN BUT A LARGE HANDFUL ARE HAUNTINGLY BEAUTIFUL ABSTRACTIONS WE OWE MR KENDALL AND THE ORGANIZERS OF THIS EXHIBITION A LARGE DEBT WE THOUGHT WE KNEW DEGAS BUT WE ONLY KNEW THE HALF OF IT DEGAS LANDSCAPES TRAVELS TO THE MUSEUM OF FINE ARTS IN HOUSTON WHERE IT WILL BE ON VIEW FROM APRIL 24 TO JULY 3 9402140078 940214 BUSINESS BRIEF UNITED TECHNOLOGIES CORP SOME SMALL DEFENSE LINES MAY BE SOLD CHAIRMAN SAYS UNITED TECHNOLOGIES CORP MAY SELL SOME OF ITS SMALL DEFENSE BUSINESSES IN THE FACE OF A SHRINKING US DEFENSE INDUSTRY CHAIRMAN ROBERT F DANIELL SAID AT A NEWS CONFERENCE IN NEW YORK HE SAID THE TIMING OF THE SALES WILL BE PURELY OPPORTUNISTIC THESE BUSINESSES INCLUDE UNITED TECHNOLOGIES'S NORDEN UNIT WHICH MAKES RADARS AND OTHERS THAT MAKE SOLID ROCKETS AND PROPELLANTS FOR THE SPACE SHUTTLE THE HARTFORD CONN COMPANY RECENTLY ANNOUNCED PLANS TO SPIN OFF ITS AUTOMOTIVE DIVISION BY ISSUING A SEPARATE CLASS OF STOCK A MOVE THAT WOULD HELP IT RAISE GROSS PROCEEDS OF 791 MILLION TO 830 MILLION THE COMPANY INTENDS TO USE THE MONEY TO REDUCE DEBT INCREASE ITS DIVIDEND AND EXPAND CORE BUSINESSES MR DANIELL SAID THE COMPANY'S FINANCIAL POSITION LOOKS RATHER FAVORABLE GOING FORWARD HE SAID THE COMPANY'S FOCUS NOW WOULD SHIFT TO CREATING GROWTH THROUGH EXPANSIONS OF ITS MARKETS ABROAD AND THROUGH ACQUISITIONS ANOTHER EXECUTIVE OF THE COMPANY SAID THE COMPANY'S OTIS UNIT WHICH MAKES ELEVATORS IS A WILLING BUYER LOOKING FOR ACQUISITIONS UNITED TECHNOLOGIES' OTHER BUSINESSES INCLUDE THE PRATT & WHITNEY JETENGINE UNIT AND CARRIER CORP A HEATING AND AIR CONDITIONING BUSINESS 9402140076 940214 BUSINESS BRIEF RAYTHEON CO WORK FORCE IS REDUCED 1 ON DEFENSESPENDING CUTS RAYTHEON CO CITING DEFENSESPENDING CUTBACKS SAID IT CUT ABOUT 550 JOBS OR ABOUT 1 OF ITS WORK FORCE IN ITS MISSILESYSTEMS AND DEFENSEEQUIPMENT DIVISIONS THE AEROSPACE ELECTRONICS AND DEFENSE CONCERN SAID IT ELIMINATED THE MANUFACTURING ENGINEERING AND MARKETING POSITIONS BECAUSE GOVERNMENT DEFENSE SPENDING CONTINUES TO DECLINE RAYTHEON LEXINGTON MASS EMPLOYS ABOUT 63000 PEOPLE WORLDWIDE THE AFFECTED POSITIONS WERE IN MASSACHUSETTS 9402140075 940214 TALLADEGA ALA IS A USERFRIENDLY CITY FOR DISABLED PEOPLE STOPLIGHTS TALK DELIVERYMEN SIGN AND AT MCDONALD'S BURGERS ARE LISTED IN BRAILLE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL TALLADEGA ALA JENNIFER CULVER IS BLIND BUT CAN SENSE WHEN OTHERS' EYES ARE UPON HER I FEEL LIKE PEOPLE ARE STARING AT ME THE 15YEAROLD SAYS I FEEL LIKE AN OUTCAST BUT NOT IN THIS TOWN HERE IN TALLADEGA VISITING A CROWDED MCDONALD'S JENNIFER ISN'T SELFCONSCIOUS AT ALL FINGERING A BRAILLE MENU PROVIDED BY THE RESTAURANT SHE SHOUTS BIG MAC AND EGG MCMUFFIN TO SEVERAL BLIND FRIENDS HERE EXPLAINS JENNIFER WHO IS PART OF HER SCHOOL'S CHEERLEADING AND TRACK TEAMS THERE ARE SO MANY LIKE ME THAT IT'S NO BIG DEAL BEING BLIND TALLADEGA IN FACT IS ALMOST CUSTOMFITTED TO CITIZENS WITH DISABILITIES TALKING STOPLIGHTS TELL PEDESTRIANS WHEN TO WALK AND WHAT STREET THEY ARE CROSSING THE TOWN'S HOSPITAL AND THE POLICE TAKE EMERGENCY CALLS FROM RESIDENTS WHO CAN'T HEAR OR TALK A FACTORY EMPLOYS MANY WORKERS WHO ARE DEAF BLIND OR BOTH PIZZA DELIVERERS CAN VERIFY AN ORDER LARGE SAUSAGE AND CHEESE IN AMERICAN SIGN LANGUAGE YOU FEEL ODD SAYING DISABLED' HERE BECAUSE PEOPLE ARE ABLE TO DO JUST ABOUT ANYTHING SAYS RUBY GREEN A VICE PRESIDENT OF CITIZENS BANK WHICH OFFERS BRAILLE STATEMENTS TO BLIND CUSTOMERS AND EMPLOYS A DEAF WOMAN AS A TELLER AT FIRST GLANCE TALLADEGA SEEMS AN UNLIKELY OASIS FOR THE DISABLED STUCK OUT IN THE RUGGED FARM COUNTRY OF CENTRAL ALABAMA IT IS BEST KNOWN FOR THE NEARBY TALLADEGA SUPERSPEEDWAY AND FOR THE LOCAL FEDERAL CORRECTIONAL INSTITUTION WHOSE INMATES HAVE INCLUDED MANUEL NORIEGA AND JIM BAKKER BUT NEAR THE TOWN SQUARE IS AN ANTEBELLUM SCHOOL FOR THE DEAF WHICH HAS GROWN TO INCLUDE SCHOOLS FOR THE BLIND AND FOR PEOPLE WITH MULTIPLE DISABILITIES THIS CLUSTER OF FACILITIES KNOWN AS THE ALABAMA INSTITUTE FOR DEAF AND BLIND IS UNUSUAL AND ITS LOCAL IMPORTANCE IS MAGNIFIED BY THE MANY STUDENTS WHO SETTLE HERE GIVING THE TOWN OF 19000 ABOUT 1000 DISABLED CITIZENS HALF OF THEM AT THE INSTITUTE THE INSTITUTE WHICH GRANTS HIGHSCHOOL DIPLOMAS AND PROVIDES VOCATIONAL TRAINING IS ALSO TALLADEGA'S BIGGEST EMPLOYER MANY GRADS WORK AT ITS FACTORY MAKING PAPER PRODUCTS NECKTIES MOPS AND OTHER ITEMS PRIMARILY FOR THE US MILITARY UNDER THE TERMS OF ITS GOVERNMENT CONTRACTS THE FACTORY MUST HAVE 75 OF ITS PRODUCTION DONE BY DISABLED WORKERS THE RESULT IS A STRIKING EXAMPLE OF HOW DISABILITIES CAN BE OVERCOME AND HOW WORKERS CAN HELP ONE ANOTHER OUT ON THE SHOP FLOOR A DEAF MAN RUNS A FASTMOVING MACHINE THAT INKS THE LINES ON LEGAL PADS BESIDE HIM A BLIND MAN CUTS THE PADS WITH A GUILLOTINE EQUIPPED WITH AN ELECTRIC EYE THAT TURNS OFF THE MACHINE IF HIS HANDS MOVE TOO CLOSE TO AN ACTIVE BLADE PRODUCTION MANAGER NORMAN CULVER ALSO IS BLIND I CAN WALK THROUGH HERE AND TELL BY THE SOUND OF THE MACHINES IF FOLKS ARE WORKING OR IF THEY'RE TALKING TOO MUCH HE SAYS MOST WORKERS REACH THE FACTORY ON A BUS DRIVEN BY A MAN WITH ONE LEG THEY EAT AT A CAFETERIA STAFFED BY THE BLIND THE FACTORY RECEPTIONIST ALSO IS LEGALLY BLIND HER WORKSTATION INCLUDES A TALKING CALCULATOR THAT CALLS OUT NUMBERS AND SCREENMAGNIFICATION SOFTWARE THAT ENLARGES TEXT ON HER COMPUTER SCREEN TO A SIZE SHE CAN MAKE OUT EUGENE PENNINGTON IS BOTH BLIND AND DEAF BUT HE CAN MAKE A BROOM BY TOUCH HE LOADS ONE END OF THE STICK INTO A ROTATING VICE WRAPS THE OTHER END WITH BROOMCORN THEN SECURES THE CORN WITH WIRE AND TRIMS IT WITH A BLADE IN NEARLY 40 YEARS AT THE FACTORY HE HAS NEVER INJURED HIMSELF I DON'T TAKE SHORTCUTS HE EXPLAINS COMMUNICATING WITH HIS BLIND MANAGER WITH TACTILE SIGNING FORMING LETTERS AND WORDS IN EACH OTHERS' HANDS LOCAL POLITICIANS VISIT THE FACTORY TO COURT THE DEAF AND BLIND VOTE AND THE TOWN CATERS TO THE DISABLED IN DOZENS OF SMALL WAYS IT HAS REPAVED BUMPY SIDEWALKS AND INSTALLED THE TALKING TRAFFIC SIGNALS WHICH ARE BELIEVED TO BE THE FIRST IN THE US THAT ALSO NAME THE STREET BEING CROSSED CHURCH SERVICES ARE CONDUCTED IN SIGN VIDEO SHOPS HAVE SIGNLANGUAGE TAPES AND MOVIES CAPTIONED FOR THE HEARINGIMPAIRED EVEN PRISON INMATES GET IN ON THE ACT TRANSCRIBING TEXTBOOKS INTO BRAILLE FOR USE AT THE INSTITUTE INMATES VOLUNTEER FOR THE WORK WHICH PAYS 12 CENTS AN HOUR IT'S BETTER THAN DIGGING A DITCH SAYS INMATE DARRYL SMITH PROOFREADING A BRAILLE TEXT ABOUT GOTHIC ARCHITECTURE AT LEAST YOU'RE DOING SOMETHING USEFUL AND INTELLECTUALLY STIMULATING HIS COWORKERS ARE HISPANIC PRISONERS WHO REGARD THE WORK AS A WAY TO IMPROVE THEIR ENGLISH NEW TECHNOLOGY ALSO HELPS THE DISABLED WORK ALONGSIDE THE ABLEBODIED IN TALLADEGA AT COLONIAL CHEVROLET BUFORD GILLIAM CAN SELL YOU A CAR WITHOUT OPENING HIS MOUTH DIALING AN OLD CUSTOMER WHO LIKE MR GILLIAM IS DEAF THE SALESMAN CONNECTS HIS PHONE HANDSET TO A KEYBOARD AND SCREEN THIS IS BUFORD CALLING FROM COLONIAL HE TYPES I HEARD YOU WERE CONSIDERING A NEW VAN IS THAT RIGHT THE WORDS APPEAR ON AN IDENTICAL MACHINE AT THE CUSTOMER'S HOME HER ANSWER FLASHES BACK FIRST I'D LIKE TO PAY OFF THE LAST ONE YOU SOLD ME SHE SAYS THIS IS THE SAME DEVICE THE POLICE AND THE TOWN'S ONLY HOSPITAL USE FOR EMERGENCY CALLS MR GILLIAM WHO READS LIPS ALSO SELLS CARS TO HEARING CUSTOMERS AND HAS MOVED ENOUGH CARS TO WIN HONORS AS COLONIAL'S SALESMAN OF THE MONTH BUFORD UNDERSTANDS WHAT PEOPLE MEAN NOT JUST WHAT THEY SAY SAYS JOEL ALDERMAN COLONIAL'S PRESIDENT HE CAN READ INNER MOTIVES LIKE MANY IN TALLADEGA MR ALDERMAN HAS LEARNED TO DO SOME SIGNING SO HE CAN COMMUNICATE MORE EASILY WITH HIS EMPLOYEE OVER AT DOMINO'S PIZZA ASSISTANT MANAGER ROBIN PLUNKETT KEEPS NEXT TO THE CASH REGISTER A BOOK CALLED THE JOY OF SIGNING IT HELPS HER TALK WITH DEAF EMPLOYEES AND CUSTOMERS WHILE SOME WORDS SUCH AS CHEESE RUBBING PALMS ARE STANDARD AMERICAN SIGN LANGUAGE OTHERS REQUIRE IMPROVISATION I'VE LEARNED A LITTLE BIT OF SIGN AND A LOT OF BODY LANGUAGE SHE SAYS DOMINO'S DELIVERYMEN ALSO KNOW SIGN THOUGH THEY CAN GET CONFUSED WHEN THEY DELIVER TO THE INSTITUTE THEY HURRY SO MUCH THAT SOMETIMES THEY CAN'T REMEMBER WHAT PART OF THE SCHOOL THEY'RE AT SAYS LEON JACKSON A BLIND STUDENT SO THEY START SIGNING AT US EVEN THOUGH WE CAN HEAR INTEGRATION INTO EVERYDAY LIFE IS EVEN POSSIBLE FOR THOSE WHO CAN'T HEAR OR SEE LIKE MR PENNINGTON THE FACTORY WORKER AFTER WORK HE TAKES THE BUS HOME TO A TRAILER PARK WHERE HE IS THE ONLY RESIDENT WITH DISABILITIES INSIDE HIS MOBILE HOME HE SHOWS OFF GADGETS THAT HELP HIM LIVE ALONE WITHOUT SIGHT SOUND OR SPEECH FOR INSTANCE THE VIBRATING ALARM CLOCK BENEATH HIS MATTRESS THAT WAKES HIM FOR WORK MR PENNINGTON DOES HIS OWN BANKING AND SHOPPING AT THE SUPERMARKET HE KNOWS PRODUCTS AND BRANDS BY FEEL CASHIERS USE THEIR FINGERS TO SCRIBBLE THE TOTAL COST IN MR PENNINGTON'S PALM HE COUNTS OUT THE EXACT SUM TELLING THE DENOMINATION OF BILLS IN HIS POCKET BY THE WAY HE HAS FOLDED THEM WITH HELP FROM A BANK TELLER NOW 59 HE LOOKS FORWARD TO RETIRING SOON A DEAF SISTER WANTS HIM TO COME LIVE WITH HER IN A RURAL AREA NEAR FAYETTE ALA BUT MR PENNINGTON WONDERS WHETHER IF HE DOES THAT HE WILL BE ABLE TO ENJOY THE INDEPENDENCE HE HAS HERE IN TALLADEGA HE SAYS I AM NOTHING SPECIAL I LIKE THAT 9402140072 940214 ONEMAN SHOW HOW DO YOU TAME A GLOBAL COMPANY MURDOCH DOES IT ALONE HE MAKES TINIEST DECISIONS AT NEWS CORP'S UNITS HAS LITTLE USE FOR ADVICE NEGOTIATING FROM HIS YACHT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES RUPERT MURDOCH THE BILLIONAIRE CHAIRMAN OF NEWS CORP HAD A LOT ON HIS MIND HIS FOX TELEVISION NETWORK WAS SECRETLY PREPARING TO BID FOR THE RIGHT TO BROADCAST NATIONAL FOOTBALL LEAGUE GAMES HE WAS CHARTING EXPANSION PLANS FOR BSKYB A LONDON SATELLITETV BUSINESS HE WAS BATTLING THE CHINESE GOVERNMENT OVER STAR TV HIS NEW ASIAN SATELLITE NETWORK YET ON A THURSDAY AFTERNOON WORKING THE PHONES AT HIS UNASSUMING OFFICE ON NEWS CORP'S TWENTIETH CENTURY FOX STUDIO LOT MR MURDOCH'S ATTENTION WAS FOCUSED ON DECIDEDLY SMALLER ISSUES I'M NOT SAYING HE DIDN'T TRY VERY HARD HE JUST FROZE EVERY TIME A CAMERA TURNED ON HE WAS SAYING TO MICHAEL OVITZ THE HEAD OF CREATIVE ARTISTS AGENCY THE QUESTION IS WHAT'S FAIR PAYING A YEAR'S SALARY FOR SIX WEEKS' WORK IS OUTRAGEOUS NEGOTIATING FAILED TALKSHOW HOST CHEVY CHASE'S SEVERANCE PAY HARDLY SEEMS LIKE AN ISSUE OF GLOBAL URGENCY AND MR MURDOCH CERTAINLY HAS PLENTY ELSE TO DO AT NEWS CORP A COMPANY WHOSE NEWSPAPERS MAGAZINES BOOKS MOVIES AND TELEVISION PROPERTIES BROUGHT IN 75 BILLION IN REVENUE FOR THE YEAR ENDED JUNE 30 YET ON THE SAME DAY MR MURDOCH WOULD ALSO MULL A PROPOSAL FROM TICKETMASTER TO EXCHANGE GUNS FOR SPORTS TICKETS AT THE LOCAL FOX TV STATION HE WOULD REVIEW THE NEXT DAY'S LEAD EDITORIAL FOR THE NEW YORK POST THE MONEYLOSING TABLOID THAT HIS COMPANY ALSO OWNS HE WOULD DISCUSS NEW SPORTS PROGRAMMING IN ASIA NOTING THAT BASKETBALL AND SOCCER ARE VERY BIG IN CHINA CALL IT MICROMANAGEMENT ON A GLOBAL SCALE IT IS A STYLE THAT HASN'T ALWAYS WON FANS FOR THE 62YEAROLD AUSTRALIAN SOME COMPANY INSIDERS RESENT HIS MEDDLING SCORES OF JOURNALISTS HAVE QUIT OVER THE YEARS BECAUSE OF THE WAY HE USES HIS NEWSPAPERS TO PRESS HIS PERSONAL VIEWS OTHERS SAY HIS AUTOCRATIC RULE CAN BE CAPRICIOUS AS HE SOURS SUDDENLY ON PROJECTS HE HAD ONLY RECENTLY CHAMPIONED AND THOUGH HE RELIES ON A FIERCELY LOYAL CADRE OF LIEUTENANTS HE CAN'T SEEM TO TOLERATE A STRONG NO 2 AMONG THE TALENTED EXECUTIVES WHO HAVE LEFT ARE FORMER FOX INC CHAIRMAN BARRY DILLER WHO NOW HEADS QVC NETWORK INC AND FORMER FOX STUDIO CHIEF JOE ROTH NOW AN INDEPENDENT PRODUCER THE ATMOSPHERE IS SORT OF LIKE A MONARCHY SAYS GREG NATHANSON A FORMER HEAD OF FOX'S TV STATIONS EVERYBODY WORKS FOR THE KING AND NOTHING ELSE MATTERS YET MR MURDOCH SAYS THIS IS WHAT IT TAKES TO MANAGE ON A GLOBAL SCALE IN AN ERA WHEN THE SUN NEVER SETS ON MANY MULTINATIONAL COMPANIES EXECUTIVES ARE FINDING IT EVER MORE DIFFICULT TO KEEP TRACK OF THEIR FARFLUNG OPERATIONS MUCH LESS TO MANAGE THEM MR MURDOCH HAS FASHIONED HIS OWN ANTIDOTE TO GLOBAL SPRAWL HE FOCUSES INTENSELY ON ONE BUSINESS AT A TIME HIS LATEST FASCINATION HAS BEEN THE TV BUSINESS IN LOS ANGELES THOUGH HE IS NOW TURNING HIS ATTENTION TO STAR TV IN ASIA YET HE DROPS IN ON HIS OTHER HOLDINGS AT A MOMENT'S NOTICE TO TAKE COMMAND OF MINOR EVEN TRIVIAL DECISIONS IF YOU'RE GOING TO GET INTO A BUSINESS MR MURDOCH SAYS TAKING A QUICK BREAK BETWEEN PHONE CALLS YOU SHOULD GET AS CLOSE TO IT AS POSSIBLE EVEN RUN IT YOURSELF FOR A PERIOD AS A FEW DAYS WATCHING MR MURDOCH IN ACTION MAKE AMPLY CLEAR THE LOGISTICS OF MICROMANAGING A GLOBAL COMPANY CAN BE DAUNTING GRAYHAIRED AND RESTLESS WITH BUSHY EXPRESSIVE EYEBROWS THAT RISE TO PUNCTUATE HIS SENTENCES MR MURDOCH IS CONSTANTLY ON THE MOVE HE SPENDS ONLY ABOUT HALF OF HIS TIME AT HIS LOS ANGELES BASE HE IS JUST AS LIKELY TO BE FOUND IN ONE OF HIS OTHER THREE OFFICES OR AT ONE OF HIS SIX HOMES OR ON HIS NEW 13 MILLION YACHT MORNING GLORY HE IS HIS OWN WALKING VIRTUAL OFFICE WHEREVER HE IS NEWS CORP IS IN BUSINESS HE EVEN CLINCHED LAST SUMMER'S 525 MILLION STAR TV DEAL WHILE VACATIONING WITH HIS FAMILY ON HIS YACHT IN THE MIDDLE OF THE MEDITERRANEAN IT HELPS THAT HE HAS SIX FULLTIME SECRETARIES SPREAD ACROSS THREE CONTINENTS IN LOS ANGELES ONE MORNING HE AWAKENS AS USUAL AT 530 AM FOR A QUICK SWIM AT HIS BEVERLY HILLS HOME THEN HE DRIVES HIMSELF TO THE OFFICE IN HIS FORESTGREEN MERCEDES COUPE HE WON'T EVEN DELEGATE THE DRIVING TO ANYONE ELSE BEFORE ARRIVING AT 7 AM HE MAKES CALLS ALL ALONG THE WAY PEPPERING EMPLOYEES WITH QUESTIONS BUT IN AN IMPECCABLY POLITE TONE THAT IS HIS TRADEMARK INSIDERS SAY HE RUNS HIS EMPIRE BY PHONE AND CLONE AND EVEN HE ADMITS TO BEING A PHONE FREAK A FEW TIMES A WEEK ANTHEA DISNEY EDITOR OF NEWS CORP'S TV GUIDE IN NEW YORK IS ON THE RECEIVING END OF ONE OF HIS CARPHONE CALLS HE WILL COMMENT ON A DOLLY PARTON COVER OR ASK ABOUT CIRCULATION TRENDS MANAGERS OF OTHER UNITS NEVER KNOW WHEN THEY PICK UP THE PHONE WHETHER THEY WILL HEAR MURDOCH HERE HOW'RE THINGS AT YOUR SHOP THE TACTIC GIVES THE IMPRESSION AT LEAST THAT MR MURDOCH HAS MASTERED THE TINIEST DETAILS OF NUMEROUS OPERATIONS THE CALLS CAN ALSO THROW DIVISIONS INTO TURMOIL YOU MUST ACCEPT THE FACT THAT YOU WORK FOR SOMEONE WHO IS IN AND OUT OF YOUR BUSINESS SAYS ONE NEWS CORP EXECUTIVE OCCASIONALLY HE'S GOING TO DIAL YOU UP AND IT ISN'T ALWAYS ABOUT YOUR PRIORITY FOR THAT DAY OR THAT WEEK MANAGERS SAY THEY ARE SOMETIMES PARALYZED IN DECISIONMAKING AS THEY WAIT TO HEAR FROM HIM FIRST MR MURDOCH WILL SPEND ABOUT 12 HOURS AT HIS OFFICE BUT HE DOESN'T CONCENTRATE ON ANY ONE ISSUE FOR LONG INSTEAD HE DARTS FROM ONE IDEA TO THE NEXT MAKING CONSTANT SPUROFTHEMOMENT DEVIATIONS FROM PLANNED MEETINGS AND DECISIONS MR MURDOCH MAKES NO APOLOGIES FOR TAKING ON THE SMALL DETAILS THAT MOST EXECUTIVES LEAVE TO LAWYERS OR UNDERLINGS ASKED WHY HE PERSONALLY HANDLED CHEVY CHASE'S SEVERANCE PAY HE REPLIES ON A MATTER LIKE THAT IT WAS JUST EASIER FOR ME TO GET INVOLVED THAN TO INVOLVE LAWYERS WHO MAKE THINGS NASTY COSTLY AND SLOW CAA'S MR OVITZ WHO NEGOTIATED ON BEHALF OF MR CHASE NOTES THAT MR MURDOCH DOESN'T HESITATE TO GET INVOLVED IN THINGS A CHIEF OPERATING OFFICER WOULD SIGN OFF TO A DEPARTMENT HEAD MR CHASE'S PAYOFF IS BELIEVED TO BE WELL UNDER 10 MILLION BUT HIS DETAILSORIENTED STYLE CAN ALSO LEAD TO COSTLY MISTAKES IN A BURST OF WHAT HE ADMITS WAS OVERENTHUSIASM ABOUT FOREIGN TV EXPANSION LAST YEAR MR MURDOCH PERSONALLY DEVOTED WEEKS TO A MINORITY INVESTMENT IN A SPANISH MAGAZINE COMPANY AND TV STATION I WASTED A LOT OF TIME GOING OVER THERE AND TRYING TO MAKE IT WORK AND IT JUST WASN'T RIGHT HE SAYS ABOUT SIX MONTHS AGO NEWS CORP PULLED OUT AND TOOK A 10 MILLION LOSS MR MURDOCH HAS BEEN CRITICIZED ON SOME OTHER DEALS FOR PAYING TOO MUCH HE BUILT HIS EMPIRE WITH 8 BILLION OF DEBT BUT AGAINST THE PLEADINGS OF HIS ADVISERS MUCH OF IT WAS SHORTTERM LEAVING HIM AT THE MERCY OF HIS BANKERS AND SOME SAY NEARLY DRIVING THE COMPANY INTO BANKRUPTCY IN THE LATE 1980S NEWS CORP IS PROFITABLE AGAIN NOW AND ANALYSTS CURRENTLY ARE HIGH ON THE COMPANY BUT THE JURY IS STILL OUT ON SOME OF ITS RECENT MOVES THE FOX NETWORK HAS HAD FLAT RATINGS RECENTLY AND HAS JUST TAKEN A HUGE GAMBLE WITH ITS 156 BILLION FOOTBALL FORAY THE FOX STUDIO HAS BEEN MIRED IN A DRY SPELL THAT ONLY RECENTLY HAS BEEN REVERSED AND THEN ONLY BY A SINGLE HIT MRS DOUBTFIRE CRITICS SAY MR MURDOCH PAID TOO MUCH FOR STAR TV A MULTICHANNEL SERVICE THAT INCLUDES NEWS SPORTS AND MTV AND THAT IS FACING COMPETITION AND GOVERNMENT INTERFERENCE I LIKE TO BE ABLE TO MOVE FAST MR MURDOCH SAYS SOMETIMES IT LEADS TO MAKING MISTAKES BUT OTHER TIMES IT LEADS TO GETTING AN OPPORTUNITY BEFORE OTHER PEOPLE SEE IT MR MURDOCH'S MUSINGS ARE INTERRUPTED BY HIS SECRETARY DOROTHY DOT WYNDOE WHO BRINGS HIM A HEAPING PLATE OF RAW CARROTS SHE DOES THIS EVERY MORNING AT ABOUT 9 AM TO KEEP MY BLOOD SUGAR EVEN MR MURDOCH EXPLAINS MATRONLY BRUSQUE AND INTENSELY LOYAL MS WYNDOE THE MOST SENIOR OF HIS SECRETARIES IS A FORMIDABLE GATEKEEPER SHE BEGAN WORKING FOR MR MURDOCH 31 YEARS AGO AS A TYPIST FOR THE SYDNEY DAILY MIRROR IN AUSTRALIA SHE FOLLOWED HIM WHEN HE MOVED HIS BASE OF OPERATIONS TO LONDON THEN NEW YORK THEN LOS ANGELES NOW HE IS LIVING PARTTIME IN HONG KONG TO KEEP AN EYE ON STAR TV AND SHE SAYS SHE WOULD READILY FOLLOW HIM THERE TOO MS WYNDOE MARSHALS THE SKILLS OF AN ARMY TACTICIAN TO KEEP MR MURDOCH'S SCHEDULE UNDER CONTROL IT IS A DAUNTING JOB EVEN WHEN HE IS SUPPOSED TO BE OFF DUTY CONSIDER HIS SUMMER HOLIDAY LAST YEAR WHEN HE CRUISED THE MEDITERRANEAN ON HIS NEW YACHT WHILE ANCHORED OFF THE COAST OF CORSICA HE SPENT TIME WITH HIS GROWN CHILDREN TOOK IN SOME SUN AND NEGOTIATED THE 525 MILLION PURCHASE OF A 64 STAKE IN STAR TV FOR THE SIGNING HE DISPATCHED NEWS CORP'S CORPORATE JET TO FETCH STAR TV'S CHINESE OWNER FROM LONDON THE NEGOTIATORS JOINED IN A FAMILY LUNCH PREPARED BY HIS WIFE NOVELIST ANNA MURDOCH TYPICAL OF MR MURDOCH HE ALSO USED HIS VACATION TO MAP OUT ANOTHER MAJOR MOVE THE TIMING OF A CONTROVERSIAL PLAN TO SHARPLY REDUCE THE NEWSSTAND PRICE OF NEWS CORP'S LONDON NEWSPAPERS THE MOVE WHICH MANY INSIDERS PREDICTED WOULD BE DISASTROUS PROMPTED A 30 DROP IN OPERATING PROFITS FROM THE BRITISH NEWSPAPERS FOR THE SIX MONTHS ENDING DEC 31 THOUGH IT ALSO RESULTED IN CIRCULATION GAINS OF ALMOST 30 AT HIS LONDON TIMES CRITICS SAY MR MURDOCH'S TENDENCY TO MAKE SUCH QUICK DECISIONS AND NOT TO TAKE COUNSEL FROM OTHERS MAKES FOR CAPRICIOUSNESS IN 1991 FOR EXAMPLE HE PLEDGED THAT HE WOULD SPEND 50 MILLION TO 100 MILLION TO START A RECORD COMPANY DECLARING THAT THAT WOULD BE NEWS CORP'S NEXT FRONTIER AND THEN ABANDONED THE IDEA MOST CORPORATIONS ARE MUCH MORE ANALYTICAL ABOUT MAKING ACQUISITIONS WHILE RUPERT IS INSTINCTIVE SAYS FRANK BARLOW MANAGING DIRECTOR OF THE BRITISH CONGLOMERATE PEARSON PLC WHICH HAD COMPETED WITH NEWS CORP IN THE BIDDING FOR STAR TV I'VE NO DOUBT THAT RUPERT HAS MADE DEALS BY SCRIBBLING A FEW CALCULATIONS ON THE BACK OF AN ENVELOPE MR MURDOCH'S LOYAL LIEUTENANTS KNOWN AS HIS CLONES AMONG SOME INSIDERS ARE GENERALLY HAPPY TO LET HIM CALL THE SHOTS SEVERAL HAVE FOLLOWED HIM AROUND THE WORLD AND STAYED WITH HIM FOR DECADES HE SOMETIMES PUTS THEM IN TOP POSTS IN BUSINESSES IN WHICH THEY HAVE NO EXPERIENCE AS SAM CHISHOLM A RELATIVELY RECENT RECRUIT WHO RUNS BSKYB PUTS IT I'D DO ANYTHING FOR HIM THIS JOB ISN'T JUST A MATTER OF LIFE AND DEATH TO ME IT'S FAR MORE IMPORTANT THAN THAT MR MURDOCH DOESN'T MEDDLE EQUALLY IN HIS VARIOUS BUSINESSES EVERY THURSDAY FLASH REPORTS BOOKS OF FINANCIAL DATA LAND ON HIS DESK FROM NEW YORK LONDON AND SYDNEY HE REVIEWS THEM ALL BUT NEWSPAPERS AND TELEVISION SEEM TO INTEREST HIM MORE THAN MOVIES AND BOOKS PERHAPS BECAUSE HE BUILT UP NEWS CORP FROM A SINGLE AUSTRALIAN NEWSPAPER INHERITED FROM HIS FATHER DURING THE 1980S FOR EXAMPLE HE RAN THE GLOBAL COMPANY FROM HIS OFFICE AT THE NEW YORK POST PHIL BUNTON FORMER NIGHT MANAGING EDITOR SAYS IT WASN'T UNUSUAL FOR MR MURDOCH TO CRITIQUE THE PAPER THE NEXT MORNING PICTURE BY PICTURE HEADLINE BY HEADLINE SAYING HATE THIS HATE THAT WHY IS PATTY HEARST IN A SWIMSUIT ON THE COVER' THEN AFTER ATTACKING THE PAPER WITH A RED MARKER MR MURDOCH WOULD SAY PRETTY GOOD NEWSPAPER HUH AFTER HE HAD TO SELL THE POST IN ORDER TO BUY A NEW YORK TV STATION HE HAS SINCE BOUGHT BACK THE NEWSPAPER MR MURDOCH SWITCHED HIS FOCUS TO HIS BRITISH SATELLITETV BUSINESS WHICH WAS MIRED IN LOSSES UNTIL IT MERGED WITH A COMPETITOR LEAVING NEWS CORP WITH A 50 STAKE NEXT HE SHIFTED HIS ATTENTION TO FOX MOVING TO THE WEST COAST WHERE HE NOW PREVIEWS PILOTS AND SPENDS HOURS PUSHING COLORED SQUARES AROUND THE NETWORK SCHEDULE BOARD IN A CONFERENCE ROOM PETER CHERNIN A FOX TV EXECUTIVE WHOM MR MURDOCH PROMOTED TO HEAD THE FOX MOVIE STUDIO SAYS IT WAS MR MURDOCH WHO FIRST SUGGESTED DURING A MARATHON SCHEDULE MEETING THAT THE SIMPSONS BE SWITCHED TO A TIME SLOT OPPOSITE RIVAL NBC'S COSBY SHOW THE BOLD MOVE PROVED EXTREMELY SUCCESSFUL MORE RECENTLY HE VETOED A PROPOSED HOWARD STERN TALK SHOW ON FOX AFTER HEARING ABOUT MR STERN'S RAUNCHY PAYPERVIEW NEW YEAR'S EVE SPECIAL AND APPROACHED BROADCASTER DIANE SAWYER ABOUT A FOX SHOW BY CONTRAST HE IS DETACHED ALMOST INDIFFERENT WHEN IT COMES TO BOOKS AND FILMS HE DIDN'T READ SCREENPLAYS WHEN I WAS THERE OR WATCH DAILIES OR GO TO AUDIENCE SCREENINGS SAYS MR ROTH THE FORMER STUDIO CHIEF HE MOSTLY WAS INTERESTED IN THE MOVIES THAT COST A LOT OF MONEY THE SAME GOES FOR HARPERCOLLINS NEWS CORP'S BOOK PUBLISHER THOUGH MR MURDOCH DID PERSONALLY WOO PRIME MINISTER MARGARET THATCHER WHO WAS PAID MORE THAN 8 MILLION FOR AN AUTOBIOGRAPHY IN NOVEMBER WHEN MRS THATCHER CAME TO THE US FOR HER BOOK TOUR HE LOANED HER THE NEWS CORP JET FOR 10 DAYS HE WAS LEFT SCRAMBLING TO TAKE THE REDEYE OVERNIGHT COMMERCIAL FLIGHT TO NEW YORK EXECUTIVES FROM HARPERCOLLINS THE STUDIO AND OTHER UNITS ARE ALWAYS ANXIOUS TO GRAB SOME FACETOFACE TIME WITH THEIR BOSS ONE THURSDAY HE SUMMONED SEVERAL DOZEN OF THEM TO THE FOUR SEASONS HOTEL FOR A NEWS CORP TECHNOLOGY CONFERENCE THIS IS A SUBJECT CLOSE TO HIS HEART FOR ALL THE TALK OF THE COMING INFORMATION SUPERHIGHWAY MR MURDOCH ADMITS TO BEING A NEOPHYTE WHEN IT COMES TO INTERACTIVE TECHNOLOGY THAT SAME DAY HE HAD SPOKEN TO JOHN MALONE CHAIRMAN OF TELECOMMUNICATIONS INC AND AFTER GOSSIPING ABOUT THE PARAMOUNT BATTLE AND WHAT TED TURNER WAS UP TO THEY HAD DISCUSSED THE COST TO CABLE COMPANIES OF DIGITAL COMPRESSION HOW FAST ARE YOU GOING TO BE DIGITIZING HE HAD ASKED YET AT THE CONFERENCE MR MURDOCH BORED QUICKLY SLIPS OUT EARLY HE HEADS BACK FOR THE OFFICE WHERE HE PERUSES THE FLASH REPORTS AND TAKES A SELECT FEW PHONE CALLS FROM PEOPLE LIKE MR OVITZ AND TIME WARNER'S CHAIRMAN GERALD LEVIN THEN AS HE DOES AT ABOUT SEVEN EACH EVENING MR MURDOCH LEAVES FOR HOME WHERE HE PHONES HIS MANAGERS IN AUSTRALIA BECAUSE IT IS ALREADY THE NEXT DAY THERE HE RARELY HITS THE HOLLYWOOD CIRCUIT AT NIGHT AN OUTSIDER BY NATURE HE PREFERS TO TALK SHOP WITH PEOPLE LIKE MR MALONE HIMSELF A NONONSENSE MANAGER WITH A LOWPROFILE PRIVATE LIFE I REALLY ENJOY RUPERT MR MALONE SAYS I THINK HE'S A VISIONARY HE'S WILLING TO RISK LOOKING BAD FOR A PROTRACTED PERIOD FOR OVERPAYING ON SOMETHING LIKE STAR TV OR GETTING THE NFL WHICH I THINK WAS BRILLIANT THE MOST SERIOUS QUESTION FACING NEWS CORP IN MR MALONE'S VIEW IS SUCCESSION AT THE COMPANY WHICH IS 32CONTROLLED BY THE MURDOCH FAMILY MR MURDOCH HAS SAID HE WANTS TO HAND THE COMPANY DOWN TO HIS THREE CHILDREN BY ANNA HIS SECOND WIFE BUT NOT FOR ANOTHER DECADE THE ELDEST 25YEAROLD ELISABETH ALREADY WORKS AS THE HEAD OF PROGRAMMING FOR FX A SOONTOBELAUNCHED CABLE CHANNEL AND HER GHANAIANBORN HUSBAND DOES FINANCIAL ANALYSIS FOR THE FOX STATION GROUP THE OTHER TWO LACHLAN AND JAMES ARE STILL AT COLLEGE AT PRINCETON AND HARVARD RESPECTIVELY FOR NOW MR MURDOCH IS KEEPING A TIGHT GRIP ON THE REINS IN RUPERT'S EMPIRE THERE IS ONLY ROOM FOR ONE EMPEROR NOTES MR MALONE AND THAT MANAGEMENT STYLE COULD PROVE TO BE FATALLY FLAWED THE REAL ISSUE IS WHAT HAPPENS IF SOMETHING HAPPENS TO RUPERT SAYS MR MALONE THE CHARACTER OF THE COMPANY WOULD HAVE TO CHANGE AND BECOME MORE TRADITIONAL YOU WON'T FIND ANOTHER RUPERT MURDOCH HE JUST DOESN'T EXIST 9402140070 940214 REVIEW & OUTLOOK EDITORIAL WHO IS WEBSTER HUBBELL V WELL TODAY WEBSTER HUBBELL SETTLES IN AS REGENT AT THE JUSTICE DEPARTMENT DEPUTY ATTORNEY GENERAL PHILIP HEYMANN HEADED BACK TO HARVARD FRIDAY A PUSHEE IN THE WORDS OF A WASHINGTON POST EDITORIAL ATTORNEY GENERAL JANET RENO STILL SITS ON THE THRONE THOUGH UNEASILY HER HALO ASKEW OVER THE DEPARTURE OF AIDE LULA RODRIGUEZ AMID VOTEFRAUD SUSPICIONS NOT TO MENTION A STIFF ROUND OF DISPARAGING LEAKS IT COULD SCARCELY BE CLEARER THAT THE ADMINISTRATION OF JUSTICE IS NOW DOMINATED BY THE ASSOCIATE ATTORNEY GENERAL FORMER ROSE LAW FIRM PARTNER OF THE FIRST LADY SUGAR BOWL TACKLE AND BIG FRIEND OF BILL JUST IN CASE ANYONE MISSED THE POINT WHEN MR HEYMANN DECIDED TO GO SOONER RATHER THAN LATER HE TOLD MR HUBBELL NOT MS RENO INDEED IN EXPLAINING HIS CONFLICT OF MANAGEMENT STYLE WITH MS RENO HE TOLD US NEWS WHEN IT COMES TO GIVING REGULAR JUSTICE INPUT INTO ADMINISTRATION POLICIES WE HAVE RELIED TOO EXCLUSIVELY ON WEBB HUBBELL'S FREE AND COMFORTABLE ACCESS TO THE WHITE HOUSE AND ALTHOUGH WEBB IS EFFECTIVE THERE ARE COSTS TO SUCH AN INFORMAL AND AD HOC APPROACH IN OUR EARLIER SCRUTINY WHO IS WEBSTER HUBBELLI II III AND IV WE QUOTED MS RENO ON ABC SAYING THAT DURING THE WACO FIASCO THE PRESIDENT NEVER SPOKE TO HER ONLY TO WEBB SO IT IS OF SOME MOMENT THAT THE REGENT HAS PROBLEMS OF HIS OWN STEMMING NOT ONLY FROM HIS FRIENDSHIP WITH THE PRESIDENT AND PARTNERSHIP WITH THE FIRST LADY BUT HIS OWN ACTIONS IN A WHITEWATERRELATED LAWSUIT THE SUIT WAS AGAINST THE LITTLE ROCK ACCOUNTING FIRM OF FROST AND CO OVER THE AUDIT THE ROSE LAW FIRM HAD USED TO HELP PERSUADE REGULATORS NOT TO CLOSE MADISON GUARANTY THE THRIFT RUN BY THE CLINTONS' WHITEWATER PARTNER JAMES MCDOUGAL THE FDIC HIRED ROSE ON THE BASIS OF THE REPRESENTATION BY THE LATE VINCENT FOSTER THAT IT DOES NOT REPRESENT ANY THRIFTS MADISON BY THAT TIME BEING DEFUNCT THE FDIC IS LOOKING INTO THIS MATTER PRESUMABLY IT WILL EVENTUALLY REPORT THAT EVERYTHING'S OK BECAUSE BACK THEN MR HUBBELL WHISPERED INTO SOMEONE'S EAR THAT ROSE HAD REPRESENTED MADISON BUT THE QUESTION STILL REMAINS HOW DID ROSE GET ON BOTH SIDES OF THESE ISSUES TO PUT THE SINISTER SUSPICION PLAINLY COULD IT BE THAT MR HUBBELL AND MR FOSTER RECOGNIZING THAT THEIR FRIENDS AND INDEED THEIR FIRM WERE IMPLICATED IN FROST'S DECEPTIVE AUDIT MANAGED TO INSINUATE THEMSELVES AS THE GOVERNMENT'S ATTORNEY SO THEY COULD FIX THE TICKET THE CHICAGO TRIBUNE HAS DISCOVERED TWO MORE CASES IN WHICH ROSE REPRESENTED GOVERNMENT REGULATORS ITS NOV 3 REPORT DISCUSSES SUITS ARISING OUT OF THE FAILURE OF TWO ILLINOIS THRIFTS FIRST AMERICAN SAVINGS AND LOAN ASSOCIATION OF OAK BROOK AND HOME FEDERAL SAVINGS AND LOAN OF CENTRALIA EACH HAD STARTED LAWSUITS LATER CONTINUED BY THE GOVERNMENT AGAINST THE LITTLE ROCK BOND FIRM HEADED BY DAN LASATER THEY ALLEGED THAT THE LASATER FIRM HAD LOST THE THRIFTS' MONEY IN UNAUTHORIZED TRADES CONTRIBUTING TO FAILURES TAXPAYERS HAD TO REDEEM THROUGH DEPOSIT INSURANCE MR LASATER WAS A BIG CONTRIBUTOR TO THE CLINTON GUBERNATORIAL CAMPAIGNS AND A BIG UNDERWRITER OF ARKANSAS BOND ISSUES ALSO A BENEFACTOR WHO PROVIDED ROGER CLINTON THE PRESIDENT'S BROTHER A JOB AND MONEY FOR DEBTS CONNECTED TO HIS DRUG PROBLEM MR LASATER WAS ALSO THE HOST OF LAVISH PARTIES LEADING TO HIS OWN CONVICTION AND JAILING ON COCAINE CHARGES THE ROSE FIRM LANDED THE GOVERNMENT'S FIRST AMERICAN CASE SHORTLY AFTER TAKING ON THE MADISON ONE THE TRIBUNE REPORTED THAT WHILE MR HUBBELL HANDLED MOST OF THE S&L WORK THIS CASE WAS ASSIGNED TO MR FOSTER AND HILLARY CLINTON THE HOME FEDERAL THRIFT HAD HIRED ROSE BEFORE BEING SEIZED BY THE GOVERNMENT BUT THERE IS A CONTROVERSY ABOUT MR LASATER BEING REPRESENTED BY A RECENTLY DEPARTED ROSE LAWYER WHO'D WORKED ON THE FIRST AMERICAN SUIT WITH MRS CLINTON AND MR FOSTER THE HOME FEDERAL CASE FILED AT 46 MILLION WAS SETTLED FOR 250000 ON MR FOSTER'S ADVICE THE FIRST AMERICAN CASE FILED AT 33 MILLION WAS SETTLED FOR 200000 AN FDIC SPOKESMAN HAS REASSURED OUR REPORTER THAT SO FAR AS THEY HAVE DETERMINED THE FIRST LADY WAS NOT INVOLVED IN THE SETTLEMENT AT THE TIME OF THESE SETTLEMENTS MR LASATER WAS IN PRISON HAVING GIVEN LEGAL AUTHORITY TO MANAGE HIS AFFAIRS TO A BUSINESS ASSOCIATE PATSY THOMASSON THOSE WHO KEEP AT THEIR BEDSIDE A WHITEWATER CAST LIST WILL RECOGNIZE HER NAME AS ONE OF THE THREE WHITE HOUSE AIDES TO VISIT VINCENT FOSTER'S OFFICE THE NIGHT OF HIS DEATH NOT TO WORRY THE REGENT AT JUSTICE HAS RECUSED HIMSELF INDEED THE WHOLE MATTER IS IN THE HANDS OF SPECIAL COUNSEL ROBERT FISKE WHO CAN SORT OUT THE ROSE PARTNER'S POSSIBLE CONFLICTS OF INTEREST WHICH REMINDS US WHAT ABOUT MR FISKE'S OWN FIRM DAVIS POLK & WARDWELL UPON INQUIRY FROM SENATOR ARLEN SPECTER MS RENO SAID THAT MR FISKE HAS TAKEN A FULL LEAVE OF ABSENCE WHICH MEANS SOMETHING OTHER THAN RESIGNATION DAVIS POLK IS A SPRAWLING FIRM WITH SPRAWLING CLIENTS MORGAN GUARANTY FOR STARTERS SEEMS TO US THERE'S A POTENTIAL FOR CONFLICT OF INTEREST WITH PRACTICALLY THE WHOLE WORLD AGAIN NOT TO WORRY MS RENO TOLD THE SENATOR THAT MR FISKE GAVE ASSURANCES HE WAS NOT AWARE OF ANY DAVIS POLK CLIENT INVOLVED IN WHITEWATER HMMM WHEN THE SPECIAL COUNSEL GETS AROUND TO LEARNING SOMETHING ABOUT WHITEWATER HE WILL DISCOVER ITS LARGEST SINGLE TRANSACTION WAS A LAND DEAL WITH INTERNATIONAL PAPER CO WHICH STANDARD COMPILATIONS LIST AMONG DAVIS POLK'S PROMINENT CLIENTS LAST WEEK THE WASHINGTON TIMES REPORTED THAT ANONYMOUS SOURCES AT THE ROSE LAW FIRM SAID IT WAS SHREDDING DOCUMENTS RELATING TO WHITEWATER THE ASSOCIATED PRESS INQUIRED AT MR FISKE'S LITTLE ROCK OFFICE AND REPORTED MR FISKE IS AWARE OF THE WASHINGTON TIMES REPORT ON SHREDDING OF DOCUMENTS THAT WILL BE INVESTIGATED BY HIS OFFICE' SAID A STAFF ASSISTANT WHO WOULD IDENTIFY HERSELF ONLY AS JOYCE REUTERS ALSO FOUND JOYCE WHILE SEEKING MR FISKE IN LITTLE ROCK REPORTING THAT HIS OFFICE IS UNMARKED BUT HAS A BLACK ELECTRONIC KEYPAD BESIDE THE DOOR BUT NOT TO WORRY REPORTS SAY MR FISKE HAS LEASED HIS OFFICES FOR THREE YEARS WHICH IS TO SAY BEYOND THE NEXT PRESIDENTIAL ELECTION WHAT ALL OF THESE ISSUES NEED IS A GOOD AIRING AND EXPLANATION NOT TO A COURT BUT TO THE AMERICAN PUBLIC WHILE CONGRESSIONAL DEMOCRATS ARE HESITANT THE VEHICLE FOR SUCH AN AIRING WILL SOON BE AVAILABLE THERE WILL HAVE TO BE CONFIRMATION HEARINGS FOR MR HEYMANN'S SUCCESSOR THE RUMORED DESIGNEE IS PENTAGON COUNSEL JAMIE GORELICK WHO SHARES WITH MR FISKE THE DISTINCTION OF HAVING BEEN ONE OF CLARK CLIFFORD'S LAWYERS IN THE BCCI CASE AS A DEPUTY IS CONSIDERED MR HUBBELL'S REGENCY AT JUSTICE IS SURELY RELEVANT ALL THAT'S NECESSARY IS FOR THE REPUBLICAN MINORITY ON JUDICIARY TO FOLLOW THE EXAMPLE FRESHMAN SENATOR LAUCH FAIRCLOTH IS SETTING ON THE BANKING COMMITTEE AND START ASKING THE OBVIOUS QUESTIONS 9402140069 940214 MANAGER'S JOURNAL BETTER MOUSE TRAP ALONE WON'T CATCH INVESTORS BY LAWRENCE LADIN IT HAS OFTEN BEEN SAID IF YOU INVENT A BETTER MOUSETRAP THE WORLD WILL BEAT A PATH TO YOUR DOOR BUT I DON'T BELIEVE IT FOR A SECOND YOU MUST BEAT A PATH TO THE WORLD'S DOOR AND YOU MAY HAVE TO KNOCK ON THAT DOOR UNTIL YOUR KNUCKLES ARE BLOODY LET'S SUPPOSE YOU'VE DISCOVERED AN INVENTOR WHO HAS DEVISED WHAT YOU KNOW IS AN IMPORTANT NEW TECHNOLOGY YOU'VE INCORPORATED RECRUITED FUNDS AND PUSHED THE START BUTTON ON A NEW RESEARCH AND DEVELOPMENT COMPANY HOWEVER YOUR INVENTOR THOUGH TECHNICALLY PROFICIENT HAS HAD NO COMMERCIALLY SUCCESSFUL INVENTIONS AS YET A DIAMOND IN THE ROUGH BASED ON MY OWN EXPERIENCE THE ODDS AGAINST POLISHING UP SUCH A GEM FOR COMMERCIAL SUCCESS ARE GREAT REGARDLESS OF YOUR INVENTOR'S TECHNICAL EXPERTISE YOU WILL SOON DISCOVER THAT POTENTIAL CLIENTS WILL VIEW HIM WITH GREAT SKEPTICISM VENTURE CAPITAL FIRMS AND POTENTIAL LICENSEES HABITUALLY SHY AWAY FROM INVENTORS WITH NO PREVIOUS SUCCESS IN THE MARKETPLACE NEVERTHELESS AS MY OWN STORY DEMONSTRATES THE ODDS CAN BE BEATEN MY INVENTORS WERE A PAIR OF RUSSIAN ENGINEERS POLITICAL REFUGEES WHO ARRIVED ON OUR SHORES IN 1974 FROM LENINGRAD VIA VIENNA AND ROME NAUM AND ALEX ENDED UP IN DES MOINES IOWA WITH THEIR WIVES CHILDREN AND ONE SUITCASE PER PERSON UNABLE TO FIND EMPLOYMENT AS ENGINEERS THEY WERE WORKING AS DRAFTSMEN FOR A CONSTRUCTION COMPANY WHICH IS WHERE I MET THEM THEY PROFESSED TO BE EXPERTS IN THE AUTOMATIC CONTROL OF INDUSTRIAL COMPRESSORS AND BROUGHT WITH THEM A DOZEN SOVIET PATENTS THAT I EXAMINED THROUGH A TRANSLATOR HAVING A DEGREE OF MY OWN IN MATHEMATICS AND CARRYING A SELFCONFIDENCE THAT I CAN ONLY FIND ASTONISHING TODAY I CONVINCED MYSELF AND MY ASSOCIATES THAT THEIR EXPERTISE WAS WORTH BACKING WE INVESTED THE SEED CAPITAL AND SET UP THE TWO INVENTORS IN A BACK OFFICE OF OUR TEXTILE FACTORY OUR INVENTORS' FIRST US PATENTS WENT FAR BEYOND THEIR EARLIER RUSSIAN WORK IN THAT LITTLE BACK OFFICE THEY DESIGNED THREE COMPLETELY INNOVATIVE CONTROLLERS FOR THE BIG TURBOCOMPRESSORS USED IN STEEL MILLS IN OIL AND GAS PRODUCTION AND REFINING AND IN CHEMICAL PLANTS THESE CONTROLLERS CAN BE DESCRIBED AS SMALL INDUSTRIAL COMPUTERS THAT AUTOMATICALLY OPERATE THE COMPRESSORS OUR INVENTORS CLAIMED TO OFFER MAJOR ENERGY SAVINGS TO COMPRESSOR OWNERS DECREASED COMPRESSOR MAINTENANCE COSTS AND MORE RELIABLE PRODUCTION BUT THEY HAD NO INSTALLATIONS IN NORTH AMERICA TO ESTABLISH THEIR CREDIBILITY SO OUR LITTLE COMPANY COMPRESSOR CONTROLS CORP FACED A MIGHTY TASK WE SOON DISCOVERED THAT RUSSIAN INVENTIONS AND ENGINEERING INSTALLATIONS CARRIED NO WEIGHT WITH OUR PROSPECTIVE CUSTOMERS OUR INVENTORS WERE TREATED AS NOVICES THOUGH TIME WOULD EVENTUALLY PROVE THAT NAUM WAS A GENIUS IN HIS FIELD OF ENGINEERING I HAVE SINCE LEARNED THAT A SIMILAR SKEPTICISM FACES US INVENTORS WHO LACK COMMERCIALLY SUCCESSFUL INVENTIONS THE OBVIOUS LICENSEES FOR OUR PATENTS WE BELIEVED WOULD BE MAJOR INDUSTRIAL CONTROL MANUFACTURERS SUCH AS FOXBORO HONEYWELL FISHER AT OUR VERY FIRST MEETING HOWEVER THE OPPOSING INHOUSE CONTROL EXPERT WAS SO ANTAGONISTIC THAT A SHOUTING MATCH DEVELOPED BETWEEN OUR INVENTORS AND HIM AND THE AIR BECAME BLUE WITH HOSTILITY THIS WAS THE NIH EFFECT THE INFAMOUS NOTINVENTEDHERE SYNDROME OTHER CONTROL COMPANIES WERE MORE POLITE BUT QUITE INDIFFERENT AS I WATCHED COMPLETELY FASCINATED BY THESE BLACKBOARD DEBATES I CAME TO THE CONCLUSION THAT OUR INVENTORS DID INDEED KNOW MORE THAN THEIR NIH OPPONENTS SO OUR LITTLE TWOPERSON COMPANY SOLDIERED ON WE DUG DEEP INTO OUR POCKETS TO KEEP THE OPERATION GOING FOR WE COULDN'T RECRUIT OUTSIDE INVESTORS NOW WE TARGETED THE COMPRESSOR MANUFACTURERS NOT MUCH LUCK THERE EITHER OUR CONTROLLERS WERE MUCH MORE EXPENSIVE THAN THOSE OF OUR COMPETITORS SO THE COMPRESSOR MANUFACTURERS SAW OUR EXPENSIVE CONTROLLERS ONLY AS AN ADDED COST NOT AS AN ADDED VALUE FOR THEM FINALLY WE REALIZED THAT OUR CONTROLLERS WOULD BE VALUED HIGHEST BY THE COMPRESSOR USERS THE STEEL MILLS REFINERIES PIPELINES AND CHEMICAL PRODUCERS WHO WOULD DIRECTLY BENEFIT FROM THE ENERGY SAVINGS FOR THEIR COMPRESSOR OPERATIONS THEY WOULD ALSO BENEFIT FROM LOWER COMPRESSOR REPAIR COSTS AND A MORE RELIABLE PRODUCTION LINE WHEN WE CALLED ON THESE INDUSTRIES WE WERE MET WITH DEEP INTEREST BUT MUCH CAUTION THE COMPRESSORS THAT WE OFFERED TO CONTROL WERE SOMETIMES MULTIMILLIONDOLLAR MACHINES OF 20000 HORSEPOWER OR MORE AND VITAL TO THE PRODUCTION OF STEEL OIL AND GAS AND CHEMICALS THE CLIENTS' ENGINEERS ACKNOWLEDGED THAT NAUM DISPLAYED VERY IMPRESSIVE KNOWLEDGE OF CONTROL THEORY AND ITS APPLICATION TO COMPRESSORS BUT WE HAD NO INSTALLATIONS IN NORTH AMERICA TO DEMONSTRATE THAT OUR THEORIES WORKED IN REAL LIFE OUR FIRST BREAK CAME FROM A PIPELINE COMPRESSOR STATION OWNED BY NORTHERN NATURAL GAS ONE COMPLEX TURBOCOMPRESSOR HAD GIVEN THEM NOTHING BUT TROUBLE AND NONE OF THE MAJOR CONTROL COMPANIES WERE ABLE TO MAKE IT RUN AS A LAST RESORT WE WERE CALLED IN TO INSTALL OUR CONTROLS WE DID AND ALL WENT WELL OUR NEXT MAJOR INSTALLATION CAME AT AN AMOCO REFINERY IN TEXAS THEIR GASOLINE PROCESS LINE KEPT SHUTTING DOWN DUE TO TROUBLE WITH THE CATALYTIC CRACKER TURBOCOMPRESSOR SOMETHING THAT TURNS HEAVY OIL INTO LIGHTER FUEL EACH OF OUR COMPETITORS HAD FAILED TO FIX THE COMPRESSOR SO THEY CALLED US IN DESPERATION TO INSTALL OUR CONTROLLERS AGAIN ALL WENT WELL THESE TWO INSTALLATIONS WERE THE BEGINNING OF OUR CREDIBILITY AND OF OUR COMPANY'S SUCCESS WE WERE NOW ABLE TO LURE A FIRSTRATE MARKETING MANAGER FROM A RIVAL CONTROL COMPANY FROM THAT POINT ON IT WAS JUST STRAIGHT HARD WORK FOR OUR LITTLE COMPANY AND STEADILY EARNED GAINS SUCCESSFUL INSTALLATIONS MULTIPLIED AND SPREAD WORLDWIDE THE COMPANY EVENTUALLY WAS ACQUIRED FOR 35 MILLION AND IT'S STILL GROWING I HAVE SINCE WORKED WITH SEVERAL OTHER HIGHTECH STARTUPS AND I AM NOW CONVINCED THAT INNOVATIVE TECHNOLOGY NO MATTER HOW IMPRESSIVE IS NEVER ENOUGH BY ITSELF AN UNTRIED INVENTOR MUST PROVE THAT THE PRODUCT WORKS IN REAL LIFE NOT JUST IN BLACKBOARD DEMONSTRATIONS BUT THAT'S NOT ALL THE NEW COMPANY WILL LIVE OR DIE BY ITS MANUFACTURING MARKETING AND FINANCIAL DECISIONS INVENTORS NO MATTER HOW INTELLIGENT RARELY HAVE EXPERIENCE IN THESE FIELDS UNFORTUNATELY THAT DOES NOT PRECLUDE INVENTORS FROM HAVING IRONCLAD OPINIONS ON HOW TO MANUFACTURE MARKET OR FINANCE THEIR INVENTIONS INVENTIONS FOR WHICH THEY HAVE ALREADY MADE SO MANY SACRIFICES AN EXPERIENCED AND INDEPENDENT BOARD OF DIRECTORS IS A NECESSITY IF THE INVENTION LOOKS EXCITING IT IS NOT TOO DIFFICULT TO ASSEMBLE A BOARD WITH GOOD GENERAL BUSINESS EXPERIENCE BUT IT IS MUCH MORE DIFFICULT TO FIND BOARD MEMBERS WHO WILL TAKE THE TIME TO UNDERSTAND SOMETHING OF THE INVENTION OR ITS MANUFACTURING OR WHO WILL MAKE CUSTOMER CALLS TO LEARN ABOUT THE MARKETING FIRSTHAND WITH A TALENTED INVENTOR A USEFUL PRODUCT AND A BOARD WHO WILL LEARN ENOUGH OF THE PRODUCT TO MAKE INDEPENDENT BUSINESS DECISIONS YOU WILL HAVE FUN FOR SURE AND YOU MIGHT EVEN MAKE A LOT OF MONEY MR LADIN IS A DIRECTOR AND CONSULTANT FOR SEVERAL HIGHTECH VENTURES 9402140068 940214 WHO'S NEWS MEDAREX INC MEDAREX INC PRINCETON NJ JULIUS A VIDA 65 YEARS OLD WAS NAMED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY INCREASING THE BOARD'S SIZE TO SIX MR VIDA RECENTLY RETIRED AS VICE PRESIDENT BUSINESS DEVELOPMENT LICENSING AND STRATEGIC PLANNING AT BRISTOLMYERS SQUIBB CO 9402140067 940214 LETTERS TO THE EDITOR A MORAL RESPONSIBILITY YOUR JAN 21 PAGEONE ARTICLE CONCERNING ABUSES BY LIFE INSURANCE AGENTS PAINTS AN UNFAIR PICTURE OF A PROFESSION THAT HAS DONE MORE TO SUSTAIN PEOPLE THAN ANY OTHER PROFESSION THE LIFEINSURANCE BUSINESS IS MADE UP OF PEOPLE WHO CONSIDER THE CLIENTS' NEEDS AND RESPOND TO THEM WE ALL REGRET THE EXISTENCE OF THE BAD APPLE AND HAVE RULES AND REGULATIONS TO RESPOND TO A SITUATION WHEN IT IS BROUGHT TO THE ATTENTION OF THE INSURANCE CARRIER WE ARE VERY CONSCIOUS OF OUR SOCIAL RESPONSIBILITY AND I CAN SAY WITH PRIDE THAT THE AGENTS I KNOW HAVE A DEGREE OF MORAL SOCIAL AND FISCAL RESPONSIBILITY TO THE CLIENT THAT IS SURPASSED BY NO OTHER PROFESSION 9402140066 940214 BUSINESS BRIEF NATIONAL CONVENIENCE STORES INC AGREEMENT TO SWAP STORES WITH CIRCLE K CORP IS SET NATIONAL CONVENIENCE STORES INC AGREED TO SWAP 80 OF ITS STOP N GO STORES IN CALIFORNIA AND GEORGIA FOR 88 CONVENIENCE STORES IN TEXAS OWNED BY CIRCLE K CORP WITH THE TRANSACTION TERMS OF WHICH WEREN'T DISCLOSED EACH COMPANY IS CONCENTRATING FURTHER ITS GEOGRAPHICAL SCOPE BOTH RETAIL CHAINS EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS LAST YEAR AND HAVE BEEN SCALING BACK OPERATIONS THE TRANSACTION IS EXPECTED TO BE COMPLETED IN LATE MARCH GIVING HOUSTONBASED NATIONAL CONVENIENCE A TOTAL OF 723 STORES ALL IN TEXAS DOWN FROM 1100 STORES IN 21 MARKETS IN 1986 CIRCLE K OWNED BY BAHRAINBASED HOLDING COMPANY INVESTCORP INTERNATIONAL INC HAS ABOUT 2500 STORES IN 28 STATES DOWN FROM ABOUT 4600 IN 1990 THE SALE TO NATIONAL CONVENIENCE WILL LEAVE CIRCLE K WITHOUT ANY STORES IN THE HOUSTON OR DALLAS AREAS BUT THE COMPANY WILL STILL OPERATE 272 OUTLETS ELSEWHERE IN TEXAS 9402140065 940214 WHO'S NEWS OSHKOSH TRUCK CORP OSHKOSH TRUCK CORP OSHKOSH WIS ROBERT G BOHN FORMER VICE PRESIDENT FOR OPERATIONS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR BOHN 40 YEARS OLD WILL REPORT TO R EUGENE GOODSON 58 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9402140064 940214 BUSINESS BRIEF MATRAHACHETTE SA REVENUE FOR YEAR FELL 19 ACCORDING TO LEGAL FILING FRENCH INDUSTRIAL AND MEDIA GROUP MATRAHACHETTE SA SAID CONSOLIDATED REVENUE FOR 1993 WAS DOWN 19 TO 5405 BILLION FRANCS 908 BILLION FROM A YEAREARLIER 551 BILLION FRANCS THE COMPANY SAID ITS DEFENSE SALES ROSE 09 TO 551 BILLION FRANCS SPACE TECHNOLOGY SALES DROPPED 76 TO 513 BILLION FRANCS TELECOMMUNICATIONS REVENUE ROSE 17 TO 75 BILLION FRANCS OTHER TRANSPORTATION SALES FELL 36 TO 102 BILLION FRANCS BOOKPUBLISHING REVENUE ROSE 39 TO 64 BILLION FRANCS WHILE PRESS REVENUE DROPPED 79 TO 81 BILLION FRANCS DISTRIBUTIONSERVICES REVENUE ROSE 44 TO 126 BILLION FRANCS AUDIOVISUAL REVENUE ROSE 48 TO 24 BILLION FRANCS MISCELLANEOUS SALES DROPPED TO 76 MILLION FRANCS FROM 196 MILLION FRANCS THE COMPANY MADE THE ANNOUNCEMENT IN A REQUIRED LEGAL FILING IN THE BULLETIN DES ANNONCES LEGALES OBLIGATOIRES 9402140063 940214 AMERICAN NURSERY PRODUCTS PLAN TULSA OKLA AMERICAN NURSERY PRODUCTS INC SAID A BANKRUPTCY JUDGE APPROVED THE COMPANY'S PLAN TO EMERGE FROM CHAPTER 11 UNDER THE PLAN SECURED LENDERS AGREED TO CONVERT 17 MILLION OF DEBT INTO STOCK IN THE GROWER AND SHIPPER OF TREES AND SHRUBS LENDERS ALSO AGREED TO RESTRUCTURE 17 MILLION IN DEBT GIVING IT A LOWER INTEREST RATE AND TO PROVIDE A 5 MILLION LINE OF CREDIT THE COMPANY SAID MOST TRADE CREDITORS WILL GET 80 OF THEIR CLAIMS WHILE INVESTORS WHO HELD STOCK IN THE COMPANY WILL LOSE THEIR INVESTMENT 9402140061 940214 WHO'S NEWS HOLLYWOOD PARK INC HOLLYWOOD PARK INC INGLEWOOD CALIF THIS COMPANY HAS RESTRUCTURED INTO TWO DIVISIONS RACING OPERATIONS AND GAMING AND ENTERTAINMENT AND NAMED DONALD M ROBBINS 46 YEARS OLD PRESIDENT OF THE RACING OPERATIONS DIVISION MR ROBBINS HAS BEEN HOLLYWOOD PARK'S PRESIDENT SINCE 1991 G MICHAEL FINNIGAN 45 WHO JOINED THE COMPANY IN 1989 AS AN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL ASSUME THE ADDITIONAL POST OF PRESIDENT OF THE GAMING AND ENTERTAINMENT DIVISION 9402140060 940214 BUSINESS BRIEF DUPONT CANADA INC COMMON STOCK SPLIT SLATED DIVIDEND IS RAISED BY 29 DUPONT CANADA INC SAID IT WILL ASK ITS SHAREHOLDERS TO APPROVE A 3FOR1 COMMON STOCK SPLIT UNDER THE PROPOSAL DUPONT CANADA WOULD ISSUE TWO ADDITIONAL SHARES FOR EVERY SHARE HELD BY HOLDERS OF RECORD MAY 27 HOLDERS ARE TO VOTE ON THE PROPOSAL AT THE ANNUAL MEETING SCHEDULED FOR MAY 13 THE TORONTO COMPANY CURRENTLY HAS 309 MILLION SHARES OUTSTANDING DUPONT CANADA WHICH IS ABOUT 76OWNED BY DUPONT CO SAID THE STOCK SPLIT WILL ENCOURAGE MORE INDIVIDUAL INVESTORS TO BUY THE CANADIAN COMPANY'S STOCK DUPONT CANADA ALSO SAID IT RAISED ITS QUARTERLY DIVIDEND BY 29 TO 225 CANADIAN CENTS 168 US CENTS FROM 175 CANADIAN CENTS REFLECTING THE STRONG UNDERLYING EARNINGS ACHIEVED IN 1993 AND THE COMPANY'S CONFIDENCE IN ITS FUTURE PROSPECTS AMID OVERALL WEAKNESS ON THE TORONTO STOCK EXCHANGE FRIDAY DUPONT CANADA SHARES CLOSED AT C5325 US3970 DOWN 375 CANADIAN CENTS 9402140059 940209 MUTUAL FUND SCORECARD / US GOVERNMENT BOND MUTUAL FUND SCORECARDS FOR US GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DEC 31 1992 RATHER THAN DEC 31 1993 DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INC THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH 12 MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JAN 31 1994 9402140058 940214 QVC RULES OUT ALTERING ITS BID FOR PARAMOUNT DECISION BOOSTS VIACOM'S ODDS OF BEING WINNER DEADLINE IS MIDNIGHT BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC RULED OUT CHANGING ITS 10 BILLION OFFER FOR PARAMOUNT COMMUNICATIONS INC BOOSTING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM INC BY THE DEADLINE OF MIDNIGHT TONIGHT THE DECISION BY QVC CHAIRMAN BARRY DILLER PUTS VIACOM CHAIRMAN SUMNER REDSTONE ON THE BRINK OF WINNING THE EPIC FIVEMONTHOLD STRUGGLE CABLE AND ENTERTAINMENT GIANT VIACOM THUS WOULD GAIN CONTROL OF ONE OF THE SIX MAJOR HOLLYWOOD STUDIOS AND A LEADING PUBLISHER BUT AT A COST NEARLY 2 BILLION HIGHER THAN MR REDSTONE ORIGINALLY INTENDED TO PAY QVC THE HOMESHOPPING COMPANY THAT SURFACED LAST SEPTEMBER WITH AN OFFER TO THWART THE LOWERPRICED FRIENDLY DEAL BETWEEN VIACOM AND PARAMOUNT CONTINUED TO APPEAL TO PARAMOUNT SHAREHOLDERS TO EMBRACE THE PROPOSED QVCPARAMOUNT COMBINATION AS OFFERING THE MOST LONGTERM VALUE WE ARE EAGER TO BEGIN THE PROCESS OF CREATING SHAREHOLDER VALUE QVC SAID IN A STATEMENT ATTACKING VIACOM PLANS FOR PARAMOUNT AS NEBULOUS TALK ABOUT SYNERGIES AND UNSPECIFIED CUTBACKS IT DECLARED THAT THE ONLY GOOD ARGUMENT IS ONE THAT CONTAINS CONCRETE PLANS FOR REBUILDING OF CURRENT ASSETS AND CREATION OF NEW ONES QVC MAINTAINED THAT ITS OFFER IS SUPERIOR WITH NO GAMES NO BELLS NO WHISTLES AND IS EASILY UNDERSTOOD YET DESPITE THE APPEAL PEOPLE IN THE QVC CAMP IN PRIVATE VIRTUALLY CONCEDED THE CONTEST THE GAME HAS RUN OUT OF GAS SAID ONE ADDED ANOTHER ODDS ARE WE LOSE IN A STATEMENT VIACOM WHICH HAS ALSO AGREED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORP SAID THAT THE THREE COMPANIES COMBINED WOULD REPRESENT THE FIRST STAGE OF CREATING A GLOBAL MEDIA POWERHOUSE OF UNPARALLELED PROPORTIONS IN THE INDUSTRY QVC HAS TRIED TO ARGUE THAT IT HAD THE SUPERIOR BID BASED ON MR DILLER'S TRACK RECORD IN MANAGING ENTERTAINMENT ASSETS AND HAS CITED UNCERTAINTIES IN VIACOM'S PENDING 84 BILLION ACQUISITION OF BLOCKBUSTER TAKEOVER STOCK TRADERS SAID THE QVC STATEMENT BOOSTED THE ODDS THAT VIACOM WILL BE ABLE TO WIN THE CONTEST TONIGHT BY GARNERING 501 OF PARAMOUNT SHARES UNDER ITS BID OF 107 A SHARE IN CASH FOR 501 OF PARAMOUNT STOCK AND SECURITIES FOR THE REMAINING SHARES QVC HAS OFFERED 104 A SHARE FOR 501 OF PARAMOUNT PLUS SECURITIES FOR THE REMAINING SHARES THERE'S A PRETTY STRONG CHANCE THAT IT'S OVER TOMORROW NIGHT SAID ONE TRADER RICHARD H SCHNEIDER ANOTHER TRADER ESTIMATED THE CHANCES OF A VIACOM VICTORY TONIGHT AT 8085 THE CHANCES OF QVC ITSELF GAINING A 501 STAKE WERE REGARDED AS CLOSE TO ZERO PARAMOUNT SHARES WERE UNCHANGED AT 76875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY RECENTLY QVC'S ODYSSEY IN WHICH IT WON TWO LEGAL VICTORIES TO OVERCOME STIFF OPPOSITION FROM PARAMOUNT AND VIACOM AND SEIZE A COMMANDING LEAD IN THE BATTLE LOST STEAM IN RECENT WEEKS AS THE COMPANY BALKED AT GUARANTEEING THE VALUE OF QVC SECURITIES IN THE SECOND STEP OF ITS TWOSTEP TENDER OFFER MOST OF THE SHARES OF PARAMOUNT ARE NOW OWNED BY ARBITRAGERS TAKEOVER STOCK SPECULATORS AND ALTHOUGH QVC'S CURRENT OFFER IS VALUED HIGHER THAN VIACOM'S THE ARBS FAVOR THE VIACOM OFFER BECAUSE IT INCLUDES JUST SUCH A GUARANTEE A SOCALLED COLLAR THAT INVOLVES ISSUING MORE VIACOM STOCK TO PARAMOUNT SHAREHOLDERS IN THE FUTURE IF THE PRICE OF THEIR HOLDINGS DOESN'T APPRECIATE BOTH BIDS ARE VALUED AT MORE THAN 10 BILLION BUT TRADERS REGARD THEIR DAILY PRICE CHANGES AS MEANINGLESS BECAUSE THE LEADING BIDDER'S STOCK TRADES AT A DISCOUNT TO THE TRAILING BIDDER'S THE DECISION BY QVC TO FORGO A COLLAR DESPITE ARBS' REQUEST FOR ONE WAS MADE BY MR DILLER WHO ARGUED THAT SUCH A MOVE POSSIBLY WOULD EXPOSE QVC SHAREHOLDERS TO SEVERE DILUTION OF THEIR HOLDINGS QVC ALSO HAS MAINTAINED THAT THE COLLAR OFFERED BY VIACOM ULTIMATELY COULD HURT THAT COMPANY'S SHAREHOLDERS IF VIACOM'S STOCK FAILS TO GAIN GROUND OVER THE NEXT ONE TO THREE YEARS THE COMPANY WOULD HAVE TO ISSUE EXTRA PAYMENTS TO CURRENT PARAMOUNT SHAREHOLDERS IN REFUSING TO PROVIDE A COLLAR MR DILLER DECIDED NOT TO HEED THE ADVICE OF TWO INVESTMENT BANKERS WHO SAID SUCH A MEASURE WAS NEEDED TO WIN HIS OWN ADVISERS AT ALLEN & CO AND BRUCE WASSERSTEIN WHO WAS ADVISING ONE OF QVC'S MAJOR INVESTORS IN THE PARAMOUNT OFFER BELLSOUTH CORP IN THE END MR DILLER'S ADVISERS AND INVESTORS DEFERRED TO HIS WISHES IN RECENT WEEKS PEOPLE IN THE QVC CAMP SAID THERE HAD BEEN INTERNAL STRESS AMONG ITS INVESTORS BELLSOUTH ADVANCE PUBLICATIONS INC AND COX COMMUNICATIONS INC OVER ISSUES RELATING TO INCREASED FINANCIAL SUPPORT MR DILLER YESTERDAY ACKNOWLEDGED THAT ANY ALLIANCE BY A DISPARATE GROUP IS EXTRAORDINARILY HARD TO MAINTAIN BUT HE QUICKLY ADDED THE FACT THIS ONE HAS BEEN MAINTAINED IS A REAL COMPLIMENT TO EACH OF THE INVESTOR PARTIES QVC'S ONLY HOPE NOW APPEARS TO BE THAT NEITHER SIDE GAINS 501 AND THE CONTEST CONTINUES WITHOUT ANY SET RULES PARAMOUNT HAS ASKED BOTH BIDDERS TO AGREE THAT WHICHEVER SIDE GETS MORE STOCK TENDERED TO IT BE DECLARED THE WINNER QVC HAS BALKED AT THAT BUT PARAMOUNT'S DIRECTORS MAY ATTEMPT TO AWARD THE CONTEST TO VIACOM ANYWAY IF VIACOM OBTAINS A LARGE PLURALITY OF STOCK ANALYSTS SAID THEY DIDN'T UNDERSTAND WHAT QVC HAD TO GAIN BY PUTTING OUT SUCH A CLEAR STATEMENT THAT IT DIDN'T PLAN TO RAISE ITS BID BECAUSE IT REMOVED ANY LINGERING DOUBT SOME TRADERS SAID THEY BELIEVED THE STATEMENT WAS AIMED AT IMPROVING QVC'S LITIGATION POSTURE IN CASE VIACOM DOESN'T GAIN 501 VIACOM HAS THREATENED TO SUE QVC IF IT DOESN'T GAIN THE 501 ON THE GROUNDS THAT MR DILLER DROPPED HINTS LAST WEEK AT MEETINGS WITH ANALYSTS AND INVESTORS THAT QVC'S INVESTORS MIGHT PUT TOGETHER A PLAN TO BUY QVC STOCK IN THE FUTURE BOOSTING ITS PERCEIVED VALUE VIACOM HAS CHARGED THAT MR DILLER'S STATEMENTS WERE A BACKDOOR WAY OF RAISING ITS BID THAT VIOLATED THE RULES THAT BIDS WEREN'T SUPPOSED TO BE CHANGED AFTER FEB 1 QVC HAS RESPONDED THAT MR DILLER DIDN'T MAKE OR HINT AT ANY PROMISES BUT PARAMOUNT FRIDAY SAID IT HAS GRAVE CONCERNS REGARDING QVC'S COMPLIANCE WITH THE BIDDING PROCEDURES QVC'S STATEMENT THAT IT WILL MAKE NO CHANGE IN ITS BID SEEMED TO RULE OUT QVC'S ALTERING ITS BID AFTER TODAY IF VIACOM FALLS SHORT OF THE 501 TARGET VIACOM HAS ARGUED THAT QVC CAN'T CHANGE ITS BID AFTER TODAY EVEN IF VIACOM DOESN'T PREVAIL A CONTENTION THAT QVC'S LAWYER MARTIN LIPTON DISPUTED ON FRIDAY IF VIACOM GAINS 501 OF PARAMOUNT'S STOCK BY MIDNIGHT TONIGHT THE BIDDING RULES REQUIRE QVC TO WITHDRAW ITS BID AND VIACOM MUST GIVE PARAMOUNT SHAREHOLDERS WHO TENDERED THEIR STOCK TO QVC ANOTHER 10 BUSINESS DAYS TO SWITCH TO VIACOM THEN VIACOM WOULD BE FREE TO ACQUIRE 501 OF PARAMOUNT SHARES ON MARCH 1 COMPLETING THE ACQUISITION SOME WEEKS LATER BY ISSUING SECURITIES FOR THE REMAINING SHARES ON FRIDAY VIACOM'S CLASS A STOCK ENDED 25 CENTS HIGHER AT 3650 A SHARE IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING QVC ROSE 125 TO 46875 A SHARE IN NASDAQ STOCK MARKET TRADING 9402140057 940214 SMALL STOCK FOCUS DOWDY CYCLICALS ON THE RISE IN GOGO SMALLCAP MARKET BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL TELL THE BIOTECH AND COMPUTERCHIP GUYS TO MOVE OVER THE FOLKS WHO MAKE POTASH FERTILIZER PLUMBING MAINTENANCE PRODUCTS ROOF SHINGLES AND BUG DEFLECTORS ARE COMING TO DINNER IN A SMALLCAPITALIZATION MARKET LONG DOMINATED BY FLASHY GOGO TECHNOLOGY STOCKS THERE ARE SIGNS THAT ECONOMICALLY SENSITIVE CYCLICAL STOCKS ARE TRYING TO GRAB PART OF THE LIMELIGHT THE ECONOMY'S RENEWED VIGOR IS PARTLY RESPONSIBLE FOR HELPING BRING THESE MUNDANE INDUSTRIAL ISSUES MORE INTO FAVOR WITH SMALLCAP INVESTORS ANALYSTS SAY AT THE SAME TIME A GROWING SENSE THAT VALUATIONS IN THE TECHNOLOGY SECTOR HAVE BECOME FROTHY HAS FOCUSED ATTENTION ON THE LOWERPROFILE CYCLICALS THEY ADD AND WHILE SOME PROFESSIONALS HAVE WARNED CYCLICALS TEND TO TAKE IT ON THE CHIN WHEN THE OVERALL STOCK MARKET SKIDS OTHERS POINT OUT THAT THE SECTOR CAN OUTPERFORM LONGERTERM IF THE ECONOMY ENTERS A STAGE OF ADVANCED GROWTH THAT'S PARTICULARLY TRUE OF NIMBLE NICHE PLAYERS IN THE DIVERSE SMALLCAP UNIVERSE THEY SAY IF YOU'RE IN A STRONG ECONOMIC ENVIRONMENT WITH INTERESTRATE RISK SAYS PETER CANELO CHIEF MARKET STRATEGIST FOR NATWEST SECURITIES PRICEEARNINGS RATIOS WILL COME UNDER PRESSURE AND SO YOU'LL WANT TO BE IN CYCLICALS COMPANIES WITH RISING EARNINGS WHETHER LARGE OR SMALL SURE THESE STOCKS MAY GO DOWN A LITTLE BIT MORE IN A MARKET CORRECTION BUT THEY COME BACK STRONGER AS THE ECONOMY ENTERS THE LATER STAGES OF EXPANSION HE ADDS AMONG NATWEST'S TOP SMALLCAP PICKS FOR 1994 ARE GIDDINGS & LEWIS INC A MANUFACTURER OF AUTOMATED MACHINE TOOLS AND POTASH CORP OF SASKATCHEWAN RECENTLY RESTRUCTURED GIDDINGS IS POISED TO BENEFIT FROM A GLOBAL ECONOMIC RECOVERY NATWEST PREDICTS AND IT THINKS POTASH CAN ACHIEVE 15 EARNINGS GROWTH OVER THE NEXT THREE TO FIVE YEARS ON A STRONG CYCLICAL REBOUND IN THE POTASH FERTILIZER MARKET A GENERAL RISE IN COMMODITY FUTURES PRICES SINCE OCTOBER ISN'T LIKELY TO ABATE ANY TIME SOON AND THOSE FIRMER PRICES SHOULD AID OTHER RAWMATERIAL CYCLICAL COMPANIES IN THE SMALLCAP SECTOR ADDS MR CANELO EVEN ASSUMING WE GET A 510 CORRECTION THIS YEAR I'M CONVINCED THE BULL MARKET WILL CONTINUE INTO 1995 AND THAT THE CHARGE WILL BE LED BY A BROAD RANGE OF CYCLICAL ISSUES THOMAS REILLY CHIEF INVESTMENT OFFICER OF PUTNAM INVESTMENT MANAGEMENT'S BASIC VALUE EQUITIES GROUP SAYS HE LIKES THE RECENT BROADBASED RETREAT IN SHARE PRICES BECAUSE THE MARKET HAD GOTTEN A LITTLE AHEAD OF ITSELF ON THE GROWTH STOCK SIDE HE PREDICTS INVESTORS WILL START LOOKING TO BASIC VALUE SMALLCAP STOCKS THAT HAVE LAGGED AT THE EXPENSE OF MOMENTUMDRIVEN TECHNOLOGY ISSUES BOSTONBASED PUTNAM'S SMALLCAP VALUE FUNDS FAVOR FOR EXAMPLE NCH CORP A SPECIALTY CHEMICAL COMPANY THAT MAKES WATERTREATMENT PRODUCTS PLUMBINGMAINTENANCE PRODUCTS AND INSECTICIDES NCH HAS TREMENDOUS FINANCIAL STRENGTH AND STAYING POWER IT'S GOT NO DEBT AND IS A STRONG CASH GENERATOR SAYS BOB D'ALELIO A SMALLCAP VALUE PORTFOLIO MANAGER AT PUTNAM THIS IS WHAT I CALL A QUALITY SMALLCAP CYCLICAL WHERE THE RISK IS LOWER IF THE ECONOMY WERE TO SLOW DOWN AND THE REWARD REMAINS IF THE ECONOMY IMPROVES HE SAYS THE STOCK TRADING AT AROUND 63 A SHARE ON THE NEW YORK STOCK EXCHANGE IS RELATIVELY CHEAP HAVING MOVED OFF ITS RECENT HIGHS ABOVE 70 IN EARLY 1993 MR D'ALELIO ADDS HE THINKS THE COMPANY CAN LIFT ITS NET INCOME 10 TO 5 A SHARE FOR THE FISCAL YEAR ENDING IN APRIL UP FROM 453 A YEAR EARLIER IN A STRONG ECONOMY IN A YEAR OR TWO YOU COULD SEE NET AT 8 A SHARE HE SAYS ONE INDICATOR OF IMPROVING SENTIMENT FOR SMALL CAPCYCLICALS IS A GROWING RAFT OF SUCH ISSUES IN THE INITIAL PUBLIC OFFERING PIPELINE EQUITY ANALYSTS SAY THE RATE OF CYCLICAL STOCK ISSUANCE HAS MORE THAN DOUBLED YEARTODATE CYCLICALS COMPRISED 21 OF THE DEALS THAT WERE PRICED THUS FAR THIS YEAR VS AROUND 12 FOR THE FIRST QUARTER LAST YEAR SAYS LINDA KILLIAN A PRINCIPAL AT RENAISSANCE CAPITAL CORP IN GREENWICH CONN AND THEY ACCOUNT FOR 28 OF THE ISSUES IN THE HOPPER OR MORE THAN DOUBLE LAST YEAR'S FIGURE SHE ADDS MS KILLIAN RECOMMENDS THAT INVESTORS BE SELECTIVE WHEN CONSIDERING SUCH IPOS IN THE WEEKS AHEAD BASICALLY YOU'RE LOOKING FOR COMPANIES THAT HAVE STRONG MARKET SHARE AND GOOD FUNDAMENTALS RENAISSANCE CAPITAL'S ONLY STRONG RECOMMENDATION AMONG THE COMING CYCLICAL ISSUES IS MARTIN MARIETTA MATERIALS WHICH HAS MAJOR STONE QUARRIES IN THE SOUTHEAST AND MIDWEST WE SEE THE STOCK AS STRONG PLAY ON A TURNAROUND IN RESIDENTIAL AND COMMERCIAL CONSTRUCTION AS WELL AS A BET ON INCREASED STATE AND FEDERAL INFRASTRUCTURE SPENDING THE IPO A SPINOFF OF MARTIN MARIETTA CORP THE BIG AEROSPACE CONCERN ALSO COMES AT A TIME WHEN MUCH OF THE MIDWEST'S ROADS AND BRIDGES ARE IN NEED OF REPAIR FROM LAST YEAR'S FLOODING MS KILLIAN ADDS RENAISSANCE ALSO RECOMMENDED DEFLECTASHIELD CO WHICH WAS PRICED ON JAN 20 AT 13 AND HAS SINCE CLIMBED TO AROUND 1650 THE COMPANY IS THE LARGEST US SUPPLIER OF BUG DEFLECTORS FOR LIGHT TRUCKS IN ITS MOST RECENT FISCAL QUARTER THE COMPANY REPORTED A 20 INCREASE IN SALES TO 108 MILLION WE LIKE THE FACT IT HAS RISING OPERATING MARGINS MS KILLIAN SAYS AN ADDITIONAL INDICATOR OF RENEWED INTEREST IN SMALLCAP CYCLICALS COMES FROM COMPANY INSIDERS WHILE THERE'S NOTHING YET THAT COULD BE DESCRIBED AS A FIRM TREND THERE HAVE BEEN A HANDFUL OF CASES OF INSIDER BUYING AMONG SMALLCAP CYCLICAL COMPANIES ACCORDING TO CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS STOCK TRANSACTIONS INVOLVING A COMPANY'S OWN EXECUTIVES DIRECTORS AND OTHER INSIDERS LINDBERG CORP A COMPANY THAT HEATTREATS METALS SAW TWO SENIOR INSIDERS SNAP UP A COMBINED 4500 SHARES AT AN AVERAGE 450 EACH LATE LAST YEAR THE STOCK IS CURRENTLY TRADING AT AROUND 525 ON THE NASDAQ STOCK MARKET AT ELCOR CORP THREE INSIDERS BOUGHT A TOTAL 4180 SHARES IN NOVEMBER AND DECEMBER AT AN AVERAGE 1875 A SHARE THE COMPANY PRODUCES LAMINATED FIBERGLASS ASPHALT SHINGLES RECYCLING EQUIPMENT AND IT PLATES DIESEL ENGINE PARTS THE STOCK CLOSED FRIDAY AT 23125 ON THE BIG BOARD SELLING OF SMALLCOMPANY STOCKS CONTINUED BUT VOLUME WAS SUBDUED AMID A MAJOR SNOWSTORM IN AN ABBREVIATED SESSION THE NEW YORK STOCK EXCHANGE THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALL CLOSED EARLY AT 230 PM EST BECAUSE OF THE EAST COAST STORM BUT MANY MARKET PLAYERS BOWED OUT EARLIER IN DEFERENCE TO THE FROSTY CONDITIONS THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS FINISHED 125 POINTS OR 047 LOWER AT 26289 THE NASDAQ COMPOSITE INDEX FELL 203 POINTS OR 026 TO 78139 DECLINING NASDAQ ISSUES SWAMPED ADVANCERS 1602 TO 1192 NASDAQ NATIONAL MARKET VOLUME WAS JUST 171882500 SHARES IN THE SHORTENED SESSION WHILE TOTAL VOLUME WAS 208189000 IN THURSDAY'S FULLLENGTH SESSION NATIONAL MARKET VOLUME STOOD AT 284235400 SHARES WHILE TOTAL VOLUME REGISTERED 339294000 FOR THE WEEK THE RUSSELL GAINED 122 POINTS OR 047 THE NASDAQ COMPOSITE ADDED 41 POINTS OR 053 AND THE DOW INDUSTRIALS CLIMBED 2336 OR 060 IN EARNINGS NEWS TIMBERLAND WAS POUNDED AFTER REPORTING FOURTHQUARTER EARNINGS OF 62 CENTS A SHARE SHORT OF ANALYSTS' ESTIMATES OF 66 CENTS SHARES OF THE HAMPTON NHBASED FOOTWEAR AND APPAREL COMPANY PLUMMETED 9 7/8 OR 185 TO 43 1/2 ON THE BIG BOARD TIMBERLAND WHICH EARNED 44 CENTS IN THE YEAREARLIER PERIOD ALSO SAID ITS GROSS PROFIT MARGIN FELL TO 364 IN THE LATEST QUARTER FROM 381 A YEAR AGO PICTURETEL A DANVERS MASS DEVELOPER OF VISUAL COMMUNICATIONS SYSTEMS FELL 2 1/4 TO 14 3/4 AS GOLDMAN SACHS & CO SLASHED ITS EARNINGS ESTIMATE ANALYST MARY HENRY CUT HER FOURTHQUARTER ESTIMATE FOR PICTURETEL TO 12 CENTS A SHARE FROM 19 CENTS AND HER 1994 ESTIMATE TO 30 CENTS A SHARE FROM 115 LITTLEFIELD ADAMS PLUNGED 3 TO 16 3/8 ON THE AMEX THE SAN ANTONIO IMPRINTER OF ATHLETIC WEAR SAID IT DECIDED TO RESCIND AN AGREEMENT WITH AMERICARE HEALTH GROUP LITTLEFIELD'S MEDICAL SALES ASSOCIATES SUBSIDIARY HAD SIGNED A CONTRACT IN MARCH GIVING AMERICARE MARKETING RIGHTS TO CERTAIN PRODUCTS IN EXCHANGE FOR 85 MILLION AMERICARE COMMON SHARES AMERICARE IS 25OWNED BY LITTLEFIELD THE COMPANY SAID IT HAS DECIDED TO TENDER ITS AMERICARE STOCK TO AN ESCROW AGENT PENDING DETERMINATION OF THE TERMS FOR ITS DISASSOCIATION WITH AMERICARE AS A RESULT OF THIS DECISION LITTLEFIELD SAID ITS ASSETS FOR THE FIRST THREE QUARTERS OF 1993 WILL BE REDUCED BY 53 MILLION THE CURRENT VALUE OF ITS INTEREST IN AMERICARE 9402140056 940214 BLACK SEA TURMOIL YEARNINGS IN CRIMEA THREATEN TO SET OFF UKRAINIAN POWDER KEG SITE OF OLD SOVIET FLEET AIMS TO BREAK FREE OF KIEV PERHAPS REJOIN RUSSIA REMEMBERING THE OLD TIES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL SIMFEROPOL UKRAINE ON THE POLITICAL TRAIL TOWARD WHAT COULD BECOME EASTERN EUROPE'S NEXT WAR IT'S A EUPHORIC MOMENT WAVING A BUNCH OF CARNATIONS UNDER THE NEW BLUE WHITE AND RED FLAG YURI MESHKOV CELEBRATES HIS INAUGURATION AS THE FIRST PRESIDENT OF CRIMEA CURRENTLY A QUASIAUTONOMOUS REPUBLIC WITHIN UKRAINE THE CRIMEAN PARLIAMENTARY CHAMBER IS PACKED THE LEAN WHITEHAIRED MR MESHKOV GETS FOUR STANDING OVATIONS BEFORE HE EVEN STARTS TO SPEAK HE VOWS TO LEAD CRIMEA TO INDEPENDENCE AND HIS PLATFORM INCLUDED A PROMISE TO HOLD A REFERENDUM ON THE ISSUE I WOULD LIKE TO CONSIDER MY INAUGURATION THE BEGINNING OF THE PROCESS OF CRIMEA JOINING THE UNITED NATIONS HE SAYS SUCH A BREAK FROM UKRAINE WOULD FREE CRIMEA TO ACHIEVE MR MESHKOV'S FINAL GOAL IN THAT PROCESS UNITY WITH RUSSIA IN UKRAINE'S CAPITAL OF KIEV THE REACTION IS THREATS WARNINGS AND A BAN ON CRIMEA'S HOLDING THE PROMISED REFERENDUM HOWEVER CRIMEA CARES LESS AND LESS WHAT KIEV DECREES UKRAINE'S UNREFORMED ECONOMY IS IN COLLAPSE AND CRIMEANS ARE DESPERATE TO LINK UP WITH THE RELATIVELY RICHER RUSSIA CRIMEA'S FRICTION WITH KIEV DEMONSTRATES THE POLITICAL AND ECONOMIC FAULT LINES OPENING ACROSS MANY OF THE NEWLY INDEPENDENT STATES SPUN OFF FROM THE SOVIET EMPIRE THIS ROCKY PENINSULA IN THE BLACK SEA IS ONE OF SUCH PLACES AS KAZAKHSTAN AND THE CAUCASUS WHERE THE SOVIETS REDREW BORDERS AND SHUFFLED POPULATIONS TO FRAGMENT DISSENT WHEN THE SOVIET UNION SHATTERED IN 1991 INTO 15 INDEPENDENT NATIONS THE RESULT WAS THAT MANY ETHNIC RUSSIANS WERE MAROONED IN FOREIGN STATES SUCH AS UKRAINE THE NEED TO PROTECT THEM GIVES RUSSIA THE RIGHT TO INTERVENE IN THE FORMER SOVIET STATES IT CALLS THE NEAR ABROAD SAY RUSSIA'S DEFENSE MINISTER PAVEL GRACHEV AND FOREIGN MINISTER ANDREI KOZYREV RUSSIAN VOTERS IN DECEMBER GAVE HEFTY SUPPORT TO THE ULTRANATIONALIST HEAD OF THE MISNAMED LIBERAL DEMOCRATIC PARTY VLADIMIR ZHIRINOVSKY WHO HAS PROMISED TO ASSEMBLE UNDER RUSSIAN RULE AN EMPIRE BIGGER THAN EVEN THE SOVIETS ACQUIRED CRIMEA IS A NATURAL TARGET FOR RUSSIA'S ACQUISITIVE ITCH SOME 70 OF CRIMEA'S 25 MILLION PEOPLE ARE ETHNIC RUSSIANS INDEED CRIMEA WAS PART OF RUSSIA FOR THE BETTER PART OF TWO CENTURIES AFTER CATHERINE THE GREAT PRIED IT FROM THE TURKS IN 1783 NIKITA KHRUSHCHEV HANDED CRIMEA OVER TO UKRAINE IN 1954 IN A TOKEN OF RUSSIANUKRAINIAN FRIENDSHIP A RATHER MEANINGLESS GIFT IN A SOVIET EMPIRE CONTROLLED BY MOSCOW BUT IN 1991 CRIMEAN VOTERS APPROVED BY 55 UKRAINE'S EXIT FROM THE SOVIET UNION HOPING FREE UKRAINIAN RULE MIGHT DELIVER THEM A BETTER LIFE SINCE THEN INFLATION FED BY KIEV'S UNREFORMED BUREAUCRACY HAS CLIMBED TO ABOUT 90 A MONTH MORE THAN THREE TIMES WORSE THAN IN RUSSIA FUEL ONCE LAVISHED ON UKRAINE BY SOVIET CENTRAL PLANNERS IS NOW COSTLY AND SCARCE PEOPLE PAID IN BUNDLES OF FASTDEVALUING UKRAINIAN COUPONS YEARN FOR RUBLES AND MANY SEE RUSSIA FOR ALL ITS TROUBLES AS THE PROMISED LAND SO IN A HEAVY TURNOUT ON JAN 30 CRIMEAN VOTERS DELIVERED A 73 MANDATE TO MR MESHKOV IT WAS SEEN HERE AS A PREVIEW OF SUPPORT FOR HIS PROMISED REFERENDUM WHICH MIGHT BE HELD ON MARCH 27 THE SAME DATE AS UKRAINIAN AND CRIMEAN PARLIAMENTARY ELECTIONS CRIMEA'S DEFIANCE IS A LIT FUSE AS KIEV POLITICIANS STRUGGLE TO HOLD TOGETHER THEIR BANKRUPT AND INCREASINGLY RESTIVE NATION UKRAINE IS POLARIZED BETWEEN NATIONALISTS CONCENTRATED HEAVILY IN THE WEST AND ETHNIC RUSSIANS CONCENTRATED IN THE EAST LAST FALL UKRAINE'S TRANSCARPATHIAN REGION NEAR THE HUNGARIAN AND SLOVAKIAN BORDERS MADE A FAILED BID FOR INDEPENDENCE INCITING NATIONALIST MILITIA TO START DRILLING IN THE AREA THE EASTERN COALMINING CENTER OF DONETSK NEAR THE RUSSIAN BORDER HAS BEEN DEMANDING ECONOMIC AUTONOMY IN THIS CLIMATE SECESSION BY CRIMEA COULD TRIGGER CIVIL WAR AND RUSSIA COULD PROVE TO BE THE WILD CARD IN WASHINGTON CENTRAL INTELLIGENCE AGENCY DIRECTOR JAMES WOOLSEY WARNED LAST MONTH THAT UKRAINE WITH ITS 52 MILLION PEOPLE AND 1800 NUCLEAR WARHEADS HAS REACHED A STAGE OF POTENTIAL CRISIS SECESSIONIST FORCES WOULD PROBABLY APPEAL TO MOSCOW FOR SUPPORT AND RUSSIA MIGHT JOIN THE FRAY HE TOLD THE SENATE SELECT INTELLIGENCE COMMITTEE WHEN THE SOVIET UNION FELL THE WEST HOPED RUSSIA THE LINCHPIN STATE WOULD FOCUS ON INTERNAL REFORM AND LET ITS NEIGHBORS ALONE INSTEAD WITH REFORM ON THE ROPES RUSSIA HAS BEEN TURNING TO ITS OLD INTERFERING WAYS FIGHTING TO PROP UP AN ANTIMUSLIM COMMUNIST REGIME IN TAJIKISTAN DABBLING IN CONFLICTS IN GEORGIA AND AZERBAIJAN AND SEEKING ECONOMIC SUPERVISION OVER COUNTRIES SUCH AS BELARUS AND UZBEKISTAN LONG A FAVORITE SEASIDE RETREAT FOR THE RUSSIAN ELITE CRIMEA IS A PARTICULARLY TEMPTING TARGET FOR INTERVENTION CONTROL OF THE PENINSULA BRINGS CONTROL OF SEVASTOPOL HOME PORT OF THE FORMER SOVIET BLACK SEA FLEET AND ACCESS TO THE MEDITERRANEAN SEA UKRAINE AND RUSSIA HAVE BEEN SQUABBLING OVER RIGHTS TO THE FLEET WITH ITS ROUGHLY 300 WARSHIPS 70000 PERSONNEL AND EXTENSIVE SHORE FACILITIES HALF A DOZEN SUMMITS BETWEEN PRESIDENTS LEONID KRAVCHUK OF UKRAINE AND BORIS YELTSIN OF RUSSIA HAVE FAILED TO RESOLVE THE DISPUTE THE FLEET HAS BEEN LEFT RUSTING IN UNDERSUPPLIED AND UNHAPPY LIMBO MEANWHILE RUSSIAN SUPPORT WAS AMPLY DISPLAYED DURING THE CRIMEA'S PRESIDENTIAL ELECTIONS IN JANUARY DURING WHICH FIVE OF THE SIX CANDIDATES CAMPAIGNED FOR CRIMEA TO LEAVE UKRAINE AND JOIN RUSSIA WHEN MR MESHKOV WON HE WAS INUNDATED WITH MESSAGES OF CONGRATULATIONS AND SUPPORT FROM SUCH RUSSIAN DIGNITARIES AS KONSTANTIN ZATULIN CHAIRMAN IN THE RUSSIAN PARLIAMENT'S LOWER HOUSE OF THE COMMITTEE ON AFFAIRS OF THE COMMONWEALTH OF INDEPENDENT STATES AND LINKS WITH COMPATRIOTS MR ZATULIN'S COMMITTEE PLANS TO SEND A DELEGATION TO CRIMEA LATER THIS MONTH MR MESHKOV A GENTLE SPEAKER WITH A SOFT HANDSHAKE HAS LONG BEEN MORE CLOSELY TIED TO MOSCOW THAN TO KIEV BORN WHILE HIS PARENTS WERE MOVING FROM RUSSIA'S DON REGION TO CRIMEA THE 49YEAROLD MR MESHKOV ONCE SERVED AS A SOVIET BORDER GUARD IN ARMENIA I WAS THE BEST AUTOMATICWEAPONS MARKSMAN IN THE KGB HE CLAIMS HE LATER STUDIED LAW AT MOSCOW STATE UNIVERSITY AND ROSE THROUGH THE COMMUNIST PARTY AS AN INVESTIGATOR IN THE CRIMEAN PROSECUTOR'S OFFICE IN 1990 HE SAYS HE LEFT THE COMMUNIST PARTY IT ISN'T CLEAR HOWEVER THAT MR MESHKOV HAS LEFT BEHIND HIS OLD TIES TO RUSSIAN MILITARY AND SECURITY NETWORKS HE RAN HIS PRESIDENTIAL CAMPAIGN FROM THE CLUBHOUSE OF THE LOCAL SOCIETY OF AFGHANISTAN VETERANS THOUGH HE NEVER SERVED IN AFGHANISTAN THE SOCIETY'S LEADER VLADIMIR KLICHNIKOV EXPLAINS THAT SOME OF HIS ORGANIZATION'S MAIN ASSETS ARE ITS CROSSBORDER CONNECTIONS WITH RUSSIA ANOTHER OF THE SOCIETY'S ORIGINAL FINANCIAL BACKERS IS RUSSIANBORN VALERY AWERKIN WHO HELPED FOUND MR MESHKOV'S REPUBLICAN PARTY OF CRIMEA MR AWERKIN RUNS A BUSINESS CONGLOMERATE BASED IN THE CRIMEAN CAPITAL SIMFEROPOL CALLED IMPEX55 IT HAS BEEN UNDER INVESTIGATION BY KIEV AS AN ALLEGED CHANNEL FOR RUSSIAN MONEY INTO CRIMEAN POLITICS MR AWERKIN SAYS HIS COMPANY DOES BUSINESS WITH RUSSIA AND EXPLAINS THAT FOR CRIMEAN ENTREPRENEURS REUNION WITH RUSSIA IS NECESSARY TO PROVIDE A MARKET BECAUSE NOBODY IS GOING TO BUY OUR PRODUCTS IN THE WEST MR AWERKIN ALSO BELIEVES THAT RUSSIA IS THE RIGHTFUL HEIR TO ALL FORMER SOVIET TERRITORY OUR IDEA IS THAT THE STATE OF RUSSIA WHICH WAS CALLED THE SOVIET UNION FOR 70 YEARS WILL BE RECREATED HE NOTES THAT TRYING TO REUNITE WITH RUSSIA HAS ITS RISKS CHERNOBYL AND YUGOSLAVIA WILL BE CHILD'S PLAY COMPARED TO THE POTENTIAL CONFLICT IN CRIMEA HE SAYS CALMLY NONETHELESS IT'S IMPOSSIBLE TO LEAVE THINGS AS THEY ARE BUT MANY OF CRIMEA'S PRORUSSIAN LEADERS SEEM SURE THEY ARE IMMUNE TO A BALKANTYPE CONFLICT WAR CAN'T HAPPEN HERE SAYS THE PRESIDENT OF THE RUSSIAN SOCIETY OF CRIMEA ANATOLY LOS SURROUNDED BY A CROWD OF PRORUSSIAN REVELERS IN FRONT OF PARLIAMENT ON THE DAY MR MESHKOV'S VICTORY WAS ANNOUNCED THE BEARDED MR LOS EXPLAINED THAT THIS IS NOT YUGOSLAVIA BECAUSE PEOPLE ARE SMARTER HERE SOME FOREIGN OBSERVERS NOTE HOPEFULLY THAT MR MESHKOV HAS BEEN WATERING DOWN HIS RHETORIC SINCE THE ELECTIONS PLAYING UP HOPES OF ECONOMIC UNION WITH RUSSIA AND DUCKING QUESTIONS ABOUT HIS PROMISED REFERENDUM HE'S MELLOWING OUT SAYS IAN BRZEZINSKI A CONSULTANT TO THE UKRAINIAN PARLIAMENT'S COUNCIL OF ADVISERS BUT MR MESHKOV FACES INTENSE PRESSURE FROM VOTERS AND PRORUSSIAN POLITICIANS TO KEEP HIS WORD NO COMPROMISE WITH KRAVCHUK AND UKRAINE SAYS THE RUSSIAN SOCIETY'S MR LOS ANOTHER DEPUTY TO CRIMEA'S PARLIAMENT ALEKSANDR KRUGLOV SAYS THAT IN THE MARCH 27 ELECTIONS THE MAIN PURPOSE IS TO BRING AS MANY RUSSIAN PATRIOTS AS POSSIBLE TO THE CRIMEAN PARLIAMENT TO MAKE MESHKOV FULFILL ALL HIS PROGRAMS THE RUSSIANBORN MR KRUGLOV BELIEVES THAT RUSSIAN TROOPS SHOULD BE SENT TO SEVASTOPOL IF NECESSARY TO RECLAIM CRIMEA HE SAYS IT WOULD BE WORTH THE RISK OF CONFLICT BECAUSE WE WILL SUFFER LESS FROM WAR THAN UKRAINE IN PRACTICE RUSSIAN ARMED FORCES ARE MASSIVELY PRESENT IN SEVASTOPOL RIGHT NOW UNDER THE FLAG OF THE OLD SOVIET BLACK SEA FLEET ABOARD ONE SUBMARINE SUPPORT SHIP MOORED ALONG A SEVASTOPOL WHARF CAPTAIN FIRST CLASS VLADIMIR VASUKOV WARNS WE ARE ARMED TO THE TEETH HE THEN SORTS OUT HIS LOYALTIES I'M RUSSIAN I LIVE IN UKRAINE I SERVE THE BLACK SEA FLEET HE HITS THE BOTTOM LINE I'M REGISTERED AS A RUSSIAN OFFICER AND RUSSIA PAYS ME KIEV'S WEAKENING HOLD OVER CRIMEA IS UNDERSCORED BY THE FATE OF MR MESHKOV'S RIVAL IN THE JAN 30 TWOMAN PRESIDENTIAL RUNOFF ELECTION PROUKRAINIAN MYKOLA BAGROV A VETERAN UKRAINIAN APPARATCHIK FROM KIEV AND SPEAKER OF THE CRIMEAN PARLIAMENT UNTIL HE RESIGNED LAST WEEK MR BAGROV WAS THE ARCHITECT LAST FALL OF THE LEGISLATION THAT CREATED A PRESIDENCY IN CRIMEA HIS AIM IN SETTING UP THE OFFICE WAS TO APPEASE CRIMEANS DEMANDING AUTONOMY BY TURNING THE PENINSULA INTO A SOMEWHAT MORE INDEPENDENT PROKIEV ENCLAVE RUN BY HIMSELF BUT HE LOST MR BAGROV'S PROGRAM GAINED HIM ONLY 23 OF THE FINAL VOTE COMING MAINLY FROM THE FRIGHTENED MINORITIES OF ETHNIC UKRAINIANS AND TATARS THE TATARS ARE INDIGENOUS TO CRIMEA AND THEIR LEADER MUSTAFA CEMILOGLU IS MOST WORRIED BY THE PRORUSSIAN MOVEMENT DEMOCRACY IN RUSSIA USUALLY STOPS WHERE NATIONALISM STARTS SAYS THE WIZENED 50YEAROLD HIS TATAR PEOPLE WHO WOULD LIKE THEIR OWN SEMIAUTONOMOUS STATE IN CRIMEA RELUCTANTLY BACKED THE PROKIEV MR BAGROV THEY FEAR A REPETITION OF THEIR PAST BITTER EXPERIENCE OF MOSCOW RULE IN THE 1940S STALIN DEPORTED CRIMEA'S ENTIRE TATAR POPULATION OF ABOUT 400000 TO CENTRAL ASIA SOME 250000 TATARS RECENTLY HAVE RETURNED TO CRIMEA MR CEMILOGLU AMONG THEM SPEAKING FROM HIS SMALL FAMILY HOME IN THE CRIMEAN TOWN OF BAKHCHISARAI MR CEMILOGLU SAYS THAT UKRAINE MUST FIGHT FOR CRIMEA IF UKRAINE WANTS TO REMAIN AN INDEPENDENT STATE ETHNIC UKRAINIANS IN CRIMEA SHARE HIS ANXIETIES THE SITUATION IS VERY SIMILAR TO BEFORE WORLD WAR II WHEN THE WEST COULDN'T STOP HITLER SAYS YURI ILYIN CHAIRMAN OF THE SEVASTOPOL BRANCH OF A UKRAINIAN CULTURAL SOCIETY AN OCEANOGRAPHER WORKING IN AN ICY FUELSTARVED RESEARCH INSTITUTE BY THE SEVASTOPOL HARBOR MR ILYIN SHOWS OFF THE SUNSET VIEW OF HIS WEAPONFILLED CITY AND SUMS UP I AM AFRAID 9402140055 940214 FOREIGN EXCHANGE DOLLAR'S DIRECTION AGAINST YEN DEPENDS ON WHETHER US USES RATES OR SANCTIONS A WALL STREET JOURNAL NEWS ROUNDUP THE DOLLAR FELL SHARPLY AGAINST THE YEN FOLLOWING THE COLLAPSE OF THE USJAPAN TRADE SUMMIT BUT ANALYSTS AND TRADERS SAID THE US CURRENCY'S NEW TRADING RANGE WILL BE DETERMINED BY HOW WASHINGTON RESPONDS TO THE TRADE TALKS' FAILURE NOT BY THE FAILURE ITSELF IF THE CLINTON ADMINISTRATION TARGETS CURRENCY RATES AS A WAY TO REDUCE THE US TRADE DEFICIT WITH JAPAN AN ACTION THAT ADMINISTRATION OFFICIALS SAID WASN'T PLANNED THE DOLLAR COULD DROP TOWARD ITS HISTORIC LOWS AGAINST THE YEN THE MARKET WATCHERS SAID BUT IF THE ADMINISTRATION PRESSURES JAPAN THROUGH THE USE OF TRADE SANCTIONS THUS SIGNALING THE MARKET THAT AN ATTACK ON EXCHANGE RATES WON'T BE LAUNCHED THE US CURRENCY COULD START RECOVERING TOWARD THE 110YEN LEVEL INDEED THE US IS POISED TO LAUNCH TRADESANCTION PROCEEDINGS TOMORROW AGAINST JAPAN OVER CELLULAR TELEPHONES AT A NEWS CONFERENCE FRIDAY AFTERNOON IN WASHINGTON PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA SAID THEY HAD FAILED TO RESOLVE ANY OF THE MAJOR IMPASSES TO A TRADE ACCORD BETWEEN THE TWO NATIONS SOON AFTERWARD THE DOLLAR FELL THROUGH A KEY TECHNICAL SUPPORT LEVEL AT 107 YEN TO AN INTRADAY LOW OF 10680 YEN A LEVEL LAST SEEN IN NOVEMBER THAT WAS WELL BELOW THE DOLLAR'S 10815YEN LEVEL LATE THURSDAY IN NEW YORK BY LATE FRIDAY THE DOLLAR WAS QUOTED AT 10685 YEN 12 BELOW THE DAYEARLIER LEVEL THE DOLLAR WEAKENED FURTHER IN ASIANPACIFIC TRADING MONDAY AND REACHED AN INTRADAY LOW OF 10607 YEN AT MIDMORNING IN TOKYO IT STOOD AT 10625 YEN AND AT 17520 MARKS FOLLOWING THE CLINTONHOSOKAWA NEWS CONFERENCE ON FRIDAY PARTICIPANTS IN THE FOREIGNEXCHANGE MARKET SOLD DOLLARS FOR YEN BETTING THAT THE US WILL RESUME EFFORTS TO TALK UP THE JAPANESE CURRENCY WITH THE DOLLAR FALLING BELOW THE SUPPORT LEVEL ON FRIDAY THESE SELLERS REASONED US STATEMENTS IN SUPPORT OF THE JAPANESE CURRENCY COULD SEND THE DOLLAR TOWARD THE 10550YEN LEVEL AND POSSIBLY BELOW THAT MANY CURRENCY WATCHERS BELIEVE THE US WILL AGAIN CALL PUBLICLY FOR A STRONGER YEN AS A WAY OF CHOPPING AWAY AT JAPAN'S HUGE TRADE SURPLUS AS THE YEN RISES EXPORTS FROM JAPAN BECOME MORE EXPENSIVE IN TERMS OF OTHER CURRENCIES WHILE IMPORTS INTO JAPAN BECOME LESS EXPENSIVE IN TERMS OF YEN IN WASHINGTON HOWEVER CLINTON ECONOMIC OFFICIALS SAID THEY WEREN'T PLANNING A BROAD EFFORT TO DRIVE UP THE YEN AGAINST THE DOLLAR THE GLOBAL FLOW OF FUNDS IS SO VAST THESE OFFICIALS SAID THAT THE US GOVERNMENT CAN'T UNILATERALLY PUSH THE YEN IN ANY DIRECTION FOR A SUSTAINED PERIOD IN THE FOREIGNEXCHANGE MARKET TOO NOT EVERYBODY WAS EXPECTING THE WHITE HOUSE TO TRY TO TALK THE YEN HIGHER TALKING THE YEN UP AT THIS POINT WOULD JUST PROLONG THE RECESSION IN JAPAN SAYS EARL JOHNSON VICE PRESIDENT FOREIGNEXCHANGE TRADING AT HARRIS TRUST & SAVINGS BANK IN CHICAGO A WEAK JAPANESE ECONOMY WOULDN'T HELP NARROW THE BILATERAL TRADE GAP THE REASONING GOES BECAUSE IT CURBS THE JAPANESE APPETITE FOR IMPORTS ON THE OTHER HAND SHOULD THE US IMPOSE TRADE SANCTIONS AGAINST JAPAN THE DOLLAR COULD BENEFIT THE MARKET PARTICIPANTS SAY IN A BESTCASE SCENARIO IN THE VIEW OF PEOPLE FAVORING THIS IDEA SANCTIONS COULD EVEN PUSH THE DOLLAR BACK TOWARD THE 110YEN LEVEL BECAUSE THEY WOULD DIVERT THE ADMINISTRATION AWAY FROM EXCHANGERATE POLICY AGAINST THE GERMAN CURRENCY THE DOLLAR WAS QUOTED AT 17543 MARKS LATE FRIDAY IN NEW YORK UP A BIT FROM 17533 MARKS LATE THURSDAY 9402140054 940214 INTERNATIONAL WASHINGTON INSIGHT MEXICO'S REBEL UPRISING IS SYMPTOM OF AREA'S LONGTERM INCOME INEQUITIES BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE POVERTY AND RAGE OF MARGINALIZED INDIANS IN MEXICO IS A SYMPTOM OF A LARGER AND LONGSIMMERING LATIN DISEASE RADICALLY UNEQUAL DISTRIBUTION OF INCOME LATIN AMERICA HAS HAD AN EMBARRASSINGLY LONG TRADITION OF POVERTY AND POOR INCOME DISTRIBUTION SAYS SEBASTIAN EDWARDS THE WORLD BANK'S CHIEF ECONOMIST FOR THE REGION BETWEEN 1960 AND 1980 LATIN AMERICA WAS THE ONLY PART OF THE WORLD WHOSE INCOME DISTRIBUTION BECAME MORE UNEQUAL THEN FROM 1980 TO 1990 THE GAP BETWEEN THE TOP 20 AND THE BOTTOM 20 WIDENED SLIGHTLY MORE THE IMPLICATIONS ARE TROUBLING FOR A PART OF THE WORLD THAT'S INCREASINGLY SEEN AS AN ECONOMIC SIZZLER WITH STOCK MARKETS RISING 56 LAST YEAR AS THE MEXICAN REBEL UPRISING DEMONSTRATES THERE ARE LARGE SEGMENTS OF LATIN SOCIETY THAT HAVEN'T GAINED ANYTHING FROM ECONOMIC REFORMS THAT THE REST OF THE WORLD IS APPLAUDING THAT MAKES THE REFORMS VULNERABLE TO POLITICAL CROSSCURRENTS MOREOVER WHEN LARGE SWATHES OF SOCIETY LACK BUYING POWER THE PROSPECTS FOR CONTINUED GROWTH ARE UNDERCUT AS IN MANY OTHER ASPECTS OF ECONOMIC REFORM THE EAST ASIANS PROVIDE A USEFUL MODEL A WORLD BANK ANALYSIS OF GROWTH RATES AND INCOME DISTRIBUTION SHOWS THE EAST ASIANS WITH HIGH RANKINGS ON BOTH THE LATINS UNTIL RECENTLY HAVE SHOWN COMPARATIVELY LOW GROWTH RATES AND WIDER DISPARITIES IN WEALTH IN THE MID 1980S MALAYSIA AND BRAZIL SHOWED COMPARABLE MEDIAN INCOME LEVELS BUT THE BOTTOM 20 OF THE POPULATION IN MALAYSIA SHOWED A PERCAPITA ANNUAL INCOME NEARLY TWICE THAT OF BRAZIL RICHARD SABOT ECONOMICS PROFESSOR AT WILLIAMS COLLEGE ARGUES THAT ASIAN GOVERNMENTS SAW THE ALLEVIATION OF POVERTY AS A WAY TO BLUNT THE APPEAL OF COMMUNIST MOVEMENTS IN THE 1960S THE ELITES CAME TO BELIEVE THAT THEIR FUTURE WELLBEING ECONOMICALLY AND POLITICALLY DEPENDED ON THE WELLBEING OF THE POOR HE SAYS IN CONTRAST LATIN AMERICAN LEADERS USUALLY OPTED TO CRUSH COMMUNISTLEANING INSURGENCIES MILITARILY WITHOUT BETTERING THE LOT OF THE POOR ONE WAY GOVERNMENTS CAN SHOW SUPPORT FOR THE BOTTOM RUNGS OF SOCIETY AS WELL AS CREATE THE BASIS FOR FUTURE ECONOMIC IMPROVEMENT IS TO PROVIDE BASIC EDUCATION FOR THE ENTIRE POPULATION BUT ACCORDING TO AN ANALYSIS BY MR SABOT VENEZUELA WAS COMMITTING ONLY 20 OF ITS EDUCATION BUDGET TO PRIMARY EDUCATION IN THE LATE 1980S COMPARED WITH 78 IN KOREA OFTEN LATIN GOVERNMENTS WILL SUBSIDIZE UNIVERSITY EDUCATION BENEFITING JUST THE CHILDREN OF THE WEALTHIER SEGMENTS OF SOCIETY ONE BRIGHT SPOT IN THIS GENERALLY DISMAL PICTURE IS CHILE CONSIDERED THE STRONGEST LATIN REFORMER CURRENTLY ALONGSIDE ANNUAL ECONOMIC GROWTH OF NEARLY 7 CHILE HAS LIFTED SOME 13 MILLION OF ITS CITIZENS OUT OF POVERTY IN THE PAST FOUR YEARS AND ALONG WITH PRIVATIZATION AND PRICE LIBERALIZATION CHILE HAS PUSHED HEALTH AND HOUSING PROGRAMS FOR THE POOR IT'S TIME THE WORLD BANK EXPLICITLY TREATED ENLIGHTENED INCOMEDISTRIBUTION TACTICS AS ONE OF THE CONDITIONS FOR CERTAIN CONCESSIONAL LOANS IT WOULD BE CONSISTENT WITH THE INSTITUTION'S BROADER EMPHASIS ON SUSTAINABLE DEVELOPMENT IN THE PAST TALK OF BETTER INCOME DISTRIBUTION CARRIED CONNOTATIONS OF SOCIALIST SCHEMES THAT WERE INFLATIONARY AND PUNITIVE TO INVESTORS BUT PROVIDING BASIC EDUCATION SANITATION AND HEALTH SERVICES SHOULDN'T BE VIEWED AS A SOCIALIST SUBTERFUGE IT'S BASIC TO ECONOMIC REFORM LAND REFORM IS TRICKIER THE ASIANS TURNED THOUSANDS OF PEASANTS INTO SMALL FARMERS BY REDISTRIBUTING LAND SEIZED BY JAPAN DURING WORLD WAR II LAND OWNERSHIP IN THE LATIN COUNTRIES NEVER WENT THROUGH SUCH AN UPHEAVAL LAND REFORM HAS BEEN TALKED ABOUT PERENNIALLY BUT SELDOM CARRIED OUT IN MANY AREAS POOR USUALLY INDIAN PEASANTS LIKE THOSE IN CHIAPAS HAVE BEEN PUSHED INTO INFERTILE HIGHLANDS THAT CAN'T SUPPORT THEM THEIR ECONOMIC OPTIONS ARE LIMITED THE QUESTION OF LAND REFORM IN LATIN AMERICA IS EXPLOSIVE POLITICALLY THE WORLD BANK AND THE OTHER INTERNATIONAL INSTITUTIONS HAVE STEERED CLEAR OF THE ISSUE AND REMAIN HESITANT TO PUSH CHANGES THAT MAKES IT MORE IMPORTANT THAT THE INSTITUTIONS DELIVER A FORCEFUL MESSAGE ALONG WITH FINANCIAL HELP WHEN IT COMES TO EDUCATION AND HEALTH THE WORLD BANK'S MR EDWARDS SAYS THAT FUNDS FOR THE SOCIAL PROGRAM IN LATIN AMERICA WILL INCREASE THIS INCLUDES PRIMARY EDUCATION HEALTH NUTRITION AND SANITATION HE ADDS THAT THE BANK IS ALSO DETERMINED TO MAKE SURE THAT THE FUNDS ACTUALLY GET THROUGH TO THE INTENDED RECIPIENTS AND NOT LEAK THROUGH TO THE MIDDLE AND UPPER CLASSES 9402140053 940214 WHAT'S NEWS BUSINESS AND FINANCE THE US IS POISED TO LAUNCH PROCEEDINGS TO IMPOSE TRADE SANCTIONS AGAINST JAPAN INVOLVING CELLULAR TELEPHONES THE MOVE TOWARD SANCTIONS WHICH FOLLOWS THE COLLAPSE OF THE CLINTONHOSOKAWA TRADE SUMMIT IS PART OF A BROAD EFFORT TO INCREASE PRESSURE ON TOKYO TO INITIATE NEW NEGOTIATIONS AND AGREE TO THE US DEMAND FOR ESTABLISHING NUMERICAL IMPORT GOALS TOKYO STOCKS FELL 26 IN MONDAY MORNING'S SESSION REFLECTING THE FAILED TALKS AND A SHARPLY STRONGER YEN ANALYSTS SAY THE DOLLAR'S TRADING RANGE AGAINST THE YEN WILL HINGE ON WASHINGTON'S TRADE STRATEGY NEARLY ALL SILICONE BREASTIMPLANT COMPANIES IN THE US INCLUDING DOW CORNING BRISTOLMYERS AND BAXTER AGREED TO FUND A 4 BILLION LIABILITY SETTLEMENT PLAN PRACTICALLY ASSURING THE WORLD'S BIGGEST PRODUCTLIABILITY PACT WILL BE OFFERED FOR COURT APPROVAL QVC RULED OUT CHANGING ITS 10 BILLION OFFER FOR PARAMOUNT INCREASING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM BY THE DEADLINE AT MIDNIGHT TONIGHT CONSUMER SPENDING FELL 05 IN JANUARY AND A CONSUMERSENTIMENT INDEX ALSO SLIPPED MANY ANALYSTS POINT TO JANUARY'S RECORD COLD WEATHER AS THE MAIN REASON FOR THE DROP IN SPENDING SEPARATELY PRODUCER PRICES OF FINISHED GOODS CLIMBED 02 LAST MONTH ROGERS COMMUNICATIONS LAUNCHED ITS LONGAWAITED BID TO BUY MACLEAN HUNTER OFFERING 208 BILLION FOR THE SHARES THAT IT DOESN'T ALREADY OWN SEGA CAPTURED 63 OF THE MOST CRUCIAL SEGMENT OF THE US MARKET FOR VIDEOGAME PLAYERS DURING THE HOLIDAY SEASON AS NINTENDO'S SLIDE ACCELERATED FALLING TO A 37 MARKET SHARE THE SEC IS REVIEWING THE FEE REQUEST BY PLAINTIFFS' LAWYERS IN A 907 MILLION SETTLEMENT BETWEEN 115000 INVESTORS AND PRUDENTIAL SECURITIES AS THE AGENCY SEEKS TO ADDRESS CONCERNS ABOUT POSSIBLE CLASSACTION ABUSES MERCK IS SHIFTING ITS STRATEGY TO EMPHASIZE MARKET SHARE RATHER THAN PROFIT MARGINS AND THE 1993 PURCHASE OF MEDCO WILL ERODE THE DRUG CONCERN'S 35 MARGIN AN EXECUTIVE SAID CHRYSLER PLANS TO ANNOUNCE A RECALL OF ITS 1994 LH AND LHS SEDANS TO REPAIR FAULTY ELECTRICAL WIRES THE FIFTH CHRYSLER RECALL IN THE LAST FEW WEEKS THE BABY BELLS HANDLE OVER 95 OF THE NATION'S PHONE CALLS AND THEIR LOCAL MONOPOLIES WILL LIKELY AVOID A SERIOUS THREAT FOR AT LEAST A DECADE SAYS A STUDY SPONSORED BY AT&T AND MCI CBS STRUCK A FIVEYEAR PACT TO BROADCAST SOUTHEASTERN CONFERENCE COLLEGE SPORTS FOR ABOUT 100 MILLION IBM AGREED TO MAKE A NEW GENERATION OF MAINFRAME CHIPS FOR ITS OLD RIVAL UNISYS INDUSTRY EXPERTS SAID POWERSOFT PLANS TO UNVEIL A DATABASE PACKAGE AIMED AT PC SOFTWARE BUYERS SHIFTING ITS FOCUS FROM COMPLEX SOFTWARE FOR LARGE CORPORATIONS BONDS LEHMAN BROTHERS TREASURY INDEX 554287 UP 2263 COMMODITIES OIL 1472 A BARREL UP 16 CENTS DOW JONES FUTURES INDEX 14436 OFF 052 SPOT INDEX 13060 OFF 040 DOLLAR 10685 YEN OFF 130 17543 MARKS UP 00010 9402140052 940214 MARKETING & MEDIA ADVERTISING CUSTOM' MAGAZINES PROLIFERATE BUT SO DO CREDIBILITY QUESTIONS BY LAURA BIRD PICTURE A DRAMATIC CLOSEUP OF A FASHION MODEL HER FACE GLISTENING IN THE SUN HER HAIR SLICKED BACK THE BLUE SEA VISIBLE BEHIND HER SOUNDS LIKE THE COVER OF ELLE MAGAZINE WELL NOT QUITE IT'S ACTUALLY SUN MAGAZINE BROUGHT TO YOU BY RAYBAN SUNGLASSES A UNIT OF BAUSCH & LOMB BUT IN MANY DETAILS FROM THE TYPEFACE ON THE COVER TO THE CHOICE OF MODEL THE NEW PUBLICATION BEARS MORE THAN A PASSING RESEMBLANCE TO ELLE IN FACT THE RAYBAN MAGAZINE'S COVER MODEL IS GABRIELLE REECE THE 24YEAROLD PROFESSIONAL VOLLEYBALL PLAYER WHO HAS GRACED THE COVER OF ELLE AT LEAST TWICE AND AS OF MARCH WILL MAKE REGULAR APPEARANCES INSIDE THE MAGAZINE AS ITS SPORTS COLUMNIST THAT ELLE SHOULD HAVE AN ADVERTISERPRODUCED CLONE IS NO COINCIDENCE SUN IS THE LATEST CUSTOM PUBLICATION FROM ELLE'S PUBLISHER HACHETTE FILIPACCHI MAGAZINES A UNIT OF MATRAHACHETTE OF PARIS SUBSCRIBERS TO SOME HACHETTE PUBLICATIONS WILL GET THE FIRST ISSUE OF SUN FOR FREE BUT IT WILL ALSO BE SOLD AT NEWSSTANDS CUSTOM MAGAZINES ARE GROWING IN POPULARITY WITH ADVERTISERS AND PUBLISHERS WHO ARE BECOMING DESPERATE TO SIDESTEP THE CURRENT CLUTTER IN TRADITIONAL PRINT MEDIA BUT ADVERTISERS AND PUBLISHERS ARE STRAINING THEIR CREDIBILITY BY ASKING CONSUMERS TO PAY FOR WHAT AT WORST ARE LITTLE MORE THAN LONG GLOSSY ADS AND AT BEST ARE ADVERTISERCONTROLLED PUBLICATIONS POSING AS INDEPENDENT MEDIA HACHETTE FILIPACCHI ALONE HAS BROUGHT OUT SEVEN CUSTOMPUBLISHED MAGAZINES INCLUDING SONY'S 495 SONY STYLE A TWICEYEARLY MAGAZINE THAT ALSO DOUBLES AS THE COMPANY'S CATALOG LESSERKNOWN TITLES INCLUDE KNOW HOW A WOMEN'S MAGAZINE SPONSORED BY GENERAL MOTORS TELL A TEEN MAGAZINE PUBLISHED FOR GENERAL ELECTRIC'S NBC TELEVISION NETWORK AND YOUR BODY & YOUR HEALTH FROM WEIGHTLOSS COMPANY JENNY CRAIG ALL OF THESE CUSTOM MAGAZINES ARE SOLD ON NEWSSTANDS COMPANIES HAVE LONG PUBLISHED THEIR OWN MAGAZINES WITH MIXED RESULTS PHILIP MORRIS COS STARTED PUBLISHING PHILIP MORRIS MAGAZINE IN THE MID1980S AS A SOAPBOX FROM WHICH TO PREACH ABOUT SMOKERS' RIGHTS BUT EXTINGUISHED THE EFFORT IN 1992 FEDERAL EXPRESS CORP PUBLISHES VIA FED EX A FREE MAGAZINE FULL OF CAREER AND OFFICEMANAGEMENT TIPS FOR ONE OF ITS MOST IMPORTANT CUSTOMERS THE PROFESSIONAL SECRETARY THE NEW CORPORATE MAGAZINES HOWEVER DIFFER IN THAT THEY ARE PRODUCED BY THE SAME COMPANIES THAT PUBLISH TRADITIONAL MAGAZINES AND READERS ARE EXPECTED TO PAY TO READ THEM THE BIG QUESTION OF COURSE IS WILL THEY SUN HAS COPIOUS FASHION PHOTOGRAPHS IN WHICH MOST OF THE MODELS WEAR RAYBANS THE RAYBAN NAME AND THE SUNGLASSES APPEAR ON THE COVER INSIDE ARE ARTICLES ON TOPICS TANGENTIALLY RELATED TO RAYBANS AND SUNGLASSES SUCH AS SPORTS CELEBRITIES DRIVING SAFETY AND THE DANGER OF ULTRAVIOLET RAYS A PICTURE FEATURE ON AMERICAN ICONS HIGHLIGHTS SUCH BRANDS AS LEVI'S OREO CAMPBELL'S SOUP AND YES RAYBAN WAYFARERS THERE'S EVEN A PHOTO OF PRESIDENT CLINTON WEARING A PAIR OF WAYFARERS THE PURPOSE OF THE MAGAZINE IS TO GO BEYOND THE LIMITS OF TRADITIONAL ADVERTISING AND BRING READERS SEVERAL MESSAGES ABOUT THE BENEFITS OF BAUSCH & LOMB'S PREMIUMPRICED SUNGLASSES SAID DAVID WHALEN VICE PRESIDENT OF MARKETING AT BAUSCH & LOMB'S EYEWEAR DIVISION IT'S ALL PART OF A GRANDER PLAN TO GET PEOPLE TO BUY AND WEAR AT LEAST ONE AND MAYBE MORE PAIR OF RAYBANS WE WANT READERS TO SAY WOW THIS MAGAZINE HAS DEMONSTRATED TO ME THAT SUNGLASSES SHOULD BE AN INTEGRAL PART OF MY ATTIRE I SHOULD GO BUY A PAIR OF RAYBANS' HE SAYS PHONY PUBLISHING IS THE VERDICT OF MARTIN S WALKER THE CHAIRMAN OF PUBLISHING CONSULTANCY WALKER COMMUNICATIONS EFFORTS SUCH AS RAYBAN'S SUN HE SAYS ARE NO MORE CREDIBLE THAN A TELEVISION INFOMERCIAL BUT FOR ADVERTISERS HE SAYS THE IDEA IS ATTRACTIVE BECAUSE IT IS SEEN AS A RELATIVELY INEXPENSIVE LONGLASTING FORM OF ADVERTISING PUBLISHERS MEANWHILE WELCOME THE REVENUE NEITHER RAYBAN NOR HACHETTE WOULD DISCUSS THE TERMS OF THE SUN VENTURE BUT DAVID PECKER HACHETTE FILIPACCHI'S PRESIDENT SAID FIRST ISSUES TYPICALLY RANGE FROM 500000 TO MORE THAN 2 MILLION MR PECKER NOTED THAT THE EDITORIAL STAFF FOR HACHETTE'S CUSTOM MAGAZINES IS ENTIRELY SEPARATE FROM THOSE OF REGULAR MAGAZINES SOME OF THE MAGAZINES TACKLE TOPICS THAT TEND TO MAKE ADVERTISERS QUEASY HE SAYS FOR EXAMPLE NBC'S TELL RECENTLY PUBLISHED AN ARTICLE ABOUT TEENS AND SEX YET EVEN GENERAL MOTORS' KNOW HOW WHICH ORIGINATED WITH HACHETTE AND NOT GENERAL MOTORS HE SAID ISN'T ABOUT TO RUN A CARBUYER'S GUIDE IN WHICH A FORD COMES OUT ON TOP DON'T EXPECT ANY APOLOGIES FROM PETER ARNELL WHOSE AGENCY ARNELL GROUP JUST WON RAYBAN'S CONSOLIDATED 7 MILLION ACCOUNT PREVIOUSLY AT GREY ADVERTISING MR ARNELL WHOSE IS ALSO SUN'S PUBLICATION DIRECTOR SAYS HE DOESN'T MIND THINKING OF SUN AS AN INFOMERCIAL IN PRINT THAT ISN'T FAR FROM WHAT SOME TRADITIONAL MAGAZINES ARE ANYWAY HE SAYS MAGAZINES PROMOTE IDEAS YET EVERY FASHION MAGAZINE HAS A SHOPPING GUIDE HE SAID CITING THE SHOPPING GUIDE IN ELLE MAGAZINE THAT TELLS READERS WHERE TO BUY THE CLOTHES FURNITURE AND COSMETICS IN THE EDITORIAL PHOTOS LET ME BE VERY STRAIGHTFORWARD HE ADDED DARE I ASK THIS DO YOU REALLY THINK ANY ADVERTISER WHO NEVER SAW HIS PRODUCT IN A MAGAZINE WOULD EVER ADVERTISE THERE ABOUT 200000 SUBSCRIBERS TO ELLE AND SEVERAL OTHER HACHETTE PUBLICATIONS WILL RECEIVE A FREE COPY OF SUN IN THE MAIL THIS SPRING BAGGED WITH THEIR MAY ISSUES MR PECKER SAID HACHETTE AND RAYBAN ALSO HOPE TO SELL THOUSANDS MORE ON NEWSSTANDS ACROSS AMERICA FOR 250 A POP RAYBAN PLANS TO START DISTRIBUTING THE MAGAZINE THIS WEEK TO ATHLETES AT THE WINTER OLYMPICS IN LILLEHAMMER NORWAY WHETHER CONSUMERS BITE AT THE NEWSTAND MAY DETERMINE WHETHER SUN IS PERCEIVED AS MORE AD THAN MAGAZINE EVEN MR WALKER GIVES IT A GOOD SHOT AT PERFORMING WELL THERE'S NO ACCOUNTING FOR WHAT PEOPLE WILL BUY HE SAID AYER THE NEW YORK AGENCY WHOSE PLANS TO MERGE WITH HAL RINEY & PARTNERS SAN FRANCISCO FELL THROUGH LAST WEEK SAID CHAIRMAN JERRY SIANO HAS GIVEN UP DAYTODAY CONTROL OF THE AGENCY'S OPERATIONS MR SIANO 59 YEARS OLD WILL RETAIN HIS TITLE BUT CONCENTRATE ON SEEKING OPPORTUNITIES THROUGH MERGERS AND ACQUISITIONS AND FURTHER INVESTMENT IN OUR EXISTING BUSINESS THE AGENCY SAID IN A STATEMENT MR SIANO WILL WORK WITH ADCOM THE INVESTMENT GROUP THAT ALSO INCLUDES FORMER SAATCHI & SAATCHI EXECUTIVE RICHARD HUMPHREYS AND WY CHOI AN OWNER OF ASIAN MEDIA PROPERTIES ADCOM ACQUIRED A SUBSTANTIAL STAKE IN AYER LAST MARCH AFTER MERGER TALKS WITH KETCHUM COMMUNICATIONS COLLAPSED TOM MAXEY AYER'S 56YEAROLD CHIEF OPERATING OFFICER WILL RETIRE AS SOON AS POSSIBLE THE AGENCY SAID ASSUMING MR MAXEY'S DUTIES IS GLENN CORLETT 50 CHIEF FINANCIAL OFFICER PATRICK CUNNINGHAM 50 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF AYER'S NEW YORK OPERATIONS A NEW POSITION HE WAS FORMERLY VICE CHAIRMAN AND CREATIVE DIRECTOR TWO EXECUTIVE VICE PRESIDENTS KEITH GOULD 58 AND JANET KEELER 46 WERE NAMED MANAGING PARTNERS OF THE NEW YORK OFFICE OVERSEEING THE AGENCY'S CLIENTS THERE A SPOKESMAN SAID AYER CONTINUES TO SEARCH FOR AN EXECUTIVE TO HEAD ITS US OPERATIONS A POST THAT HAS BEEN VACANT SINCE JULY WHEN DOM ROSSI THEN AYER'S US PRESIDENT WAS NAMED VICE CHAIRMAN BUSINESS DEVELOPMENT MCDONALD'S WHICH HAS HAD A KNACK FOR CHOOSING CONTROVERSIAL MOVIES FOR ITS MARKETING TIEINS SAID IT HAS FOUND A CONTROVERSYFREE FILM THIS YEAR WITH THE FLINTSTONES UNIVERSAL STUDIOS' REVIVAL OF THE ANIMATED STONE AGE TELEVISION FAMILY A STONE AGE ROCDONALD'S IS FEATURED IN THE LIVEACTION FLICK IN TWO SCENES THAT TAKE PLACE IN THE TOWN OF BEDROCK MCDONALD'S SAID THE FASTFOOD CHAIN PLANS TO CAPITALIZE ON THE ROCDONALD'S JOKE IN ADS FROM OMNICOM GROUP'S DDB NEEDHAM SAID CRAIG MCANSH MCDONALD'S MARKETING MANAGER MCDONALD'S PLANS INSTORE TIEINS FOR ADULTS AND FOR CHILDREN TWO OF THE COMPANY'S PREVIOUS BLOCKBUSTER TIEINS WITH BATMAN RETURNS AND JURASSIC PARK HELPED THOSE FILMS HAVE RECORDBREAKING OPENING WEEKENDS BUT ALSO RAISED EYEBROWS BECAUSE SOME FRANCHISEES CONSIDERED THEM TOO SCARY TO PROMOTE TO SMALL CHILDREN MR MCANSH SAID THAT SINCE THE FLINTSTONES IS RATED PG AND NOT PG13 THERE IS NO ANTICIPATION THAT ANYTHING LIKE THAT COULD POSSIBLY HAPPEN AGAIN UNIVERSAL STUDIOS IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL MCA MCA/UNIVERSAL MERCHANDISING SAID IT ALSO HAS LICENSING PLANS WITH MARKETERS INCLUDING MATTEL AND PHILIP MORRIS'S KRAFT GENERAL FOODS UNIT 9402140051 940214 THE OUTLOOK CLINTON'S HEALTH PLAN IS A FISCAL DICE ROLL BY DAVID WESSEL WASHINGTON IT DIDN'T MAKE THE HEADLINES BUT THE MESSAGE IMPLIED IN THE DELICATELY WORDED FINAL CHAPTER OF THE CONGRESSIONAL BUDGET OFFICE'S REVIEW OF PRESIDENT CLINTON'S HEALTH PLAN IS ALARMING THIS PLAN REPRESENTS THE FEDERAL GOVERNMENT'S BIGGEST FISCAL GAMBLE SINCE RONALD REAGAN SIMULTANEOUSLY CUT TAXES AND INCREASED DEFENSE SPENDING CBO DIDN'T PUT IT THAT WAY OF COURSE THE EXPLOSIVE WARNING IS BURIED IN A CHAPTER DEMURELY TITLED OTHER CONSIDERATIONS UNDER THE UNWIELDY HEADING THE EFFECTS AND SUSTAINABILITY OF CONTROLS ON THE RATE OF GROWTH OF PREMIUMS BUT IT'S THERE NONETHELESS AND TAXPAYERS SHOULD VIEW IT AS A BIG RED FLAG THE CBO REPORT ESTIMATES THAT OVER THE NEXT SIX YEARS THE CLINTON PLAN WOULD COST THE GOVERNMENT 130 BILLION MORE THAN THE WHITE HOUSE SAYS BUT THAT ASSUMES MR CLINTON'S CAPS ON THE GROWTH IN HEALTHCARE SPENDING HOLD IF THEY DON'T THE COST TO TAXPAYERS WILL BE SUBSTANTIALLY MORE THE FUNDAMENTAL QUESTION ABOUT THE CLINTON PLAN THE ONE THAT MOST TROUBLES SEVERAL OF MR CLINTON'S ECONOMIC ADVISERS IS WILL THOSE CAPS HOLD READING BETWEEN THE LINES CBO SUGGESTS THEY WON'T BUT THE REPORT EXPLICITLY SAYS ONLY THAT THE CAPS ARE LIKELY TO CREATE IMMENSE PRESSURE AND CONSIDERABLE TENSION IN SOCIETY AND THE HEALTHCARE SYSTEM PRESSED BY REPUBLICAN SEN JOHN DANFORTH OF MISSOURI TO ELABORATE CBO DIRECTOR ROBERT REISCHAUER DUCKED THE REAL ISSUE HE SAID IS WHETHER THE INSTITUTIONAL AND POLITICAL STRUCTURE OF THE NATION CAN WITHSTAND THOSE PRESSURES AND WE HAVE NO ABILITY TO JUDGE THAT THE WHITE HOUSE ESTIMATES THAT HEALTHINSURANCE PREMIUMS EMPLOYERS PAY FOR THEIR WORKERS WILL RISE 9 ANNUALLY IN COMING YEARS IF THERE IS NO HEALTHCARE REFORM MR CLINTON PROPOSES A LAW TO CUT THAT RATE OF INCREASE IN HALF HE DESCRIBES THIS AS A BACKSTOP IN CASE MANAGED COMPETITION FAILS TO SLOW THE GROWTH IN HEALTH COSTS CBO FIGURES THE CAPS ARE ABOUT THE ONLY THING IN THE CLINTON PLAN THAT WILL ACTUALLY WORK TO SLOW THE GROWTH OF HEALTHCARE SPENDING IT ACCEPTS THEM BECAUSE MR CLINTON WOULD WRITE A LAW WITH TEETH TO ENFORCE THEM BUT LAWS LAST ONLY AS LONG AS CONGRESS AND THE PUBLIC SUPPORT THEM IF THE RELIANCE IS PLACED ON PREMIUM CAPS SAYS SEN DANFORTH IT'S THE POLITICAL PROBLEM OF HAVING THE WILL TO STICK WITH THOSE CAPS CBO PREDICTS THAT THE FIRST PROBLEMS WILL SURFACE WHEN MR CLINTON'S NEW NATIONAL HEALTH BOARD SETS DIFFERENT PREMIUMS FOR DIFFERENT REGIONS TO REFLECT EXISTING DIFFERENCES IN HEALTH COSTS BOSTON'S PREMIUM COULD EASILY BE TWICE THE ONE SET FOR EL PASO TEXAS AMERICANS TOLERATE WIDE REGIONAL DISPARITIES IN PRIVATE MARKETS BUT SUCH DISPARITIES ARE HARD TO JUSTIFY WHEN DETERMINED BY GOVERNMENT THAT'S WHY SOCIAL SECURITY BENEFITS ARE THE SAME ACROSS THE COUNTRY DESPITE DIFFERING LIVING COSTS THE PRESSURE TO SPEND MORE MONEY WILL LIKELY GROW IN THE SECOND YEAR WHEN THE BOARD SETS GROWTH RATES FOR DIFFERENT REGIONS AND THE CONGRESSMAN FROM EL PASO DISCOVERS THAT EVEN THOUGH PREMIUMS THERE ARE LOWER THAN IN BOSTON THEY MIGHT BE ALLOWED TO RISE ONLY BY THE SAME PERCENTAGE AND IF THE REGIONAL CAPS SURVIVE THAT BATTLE THERE'S STILL THE SUBSTANTIAL RISK THAT THE SPENDING CAPS IN AND OF THEMSELVES WILL PROVOKE ENOUGH HOSPITAL CLOSINGS DISGRUNTLED DOCTORS LONG WAITING TIMES AND HORROR STORIES TO FORCE CONGRESS TO RAISE THEM LIFTING THE CAPS WOULD COST TAXPAYERS BILLIONS OF DOLLARS A YEAR IN ADDITIONAL SUBSIDIES TO LOWWAGE WORKERS AND SMALL COMPANIES HOW MUCH LEWIN VHI A HEALTH CONSULTING FIRM IN FAIRFAX VA ESTIMATES THAT IF THE CONGRESS DECIDES THAT CUTTING THE ANNUAL GROWTH OF HEALTH COSTS FROM THE CURRENTLY PROJECTED 9 TO ROUGHLY 4 1/2 IS TOO TOUGH AND SETTLES FOR A 6 3/4 GROWTH RATE THE GOVERNMENT WILL HAVE TO SPEND AN ADDITIONAL 17 BILLION ANNUALLY BY THE YEAR 2000 ON HEALTHCARE SUBSIDIES THAT EQUALS THE JUSTICE DEPARTMENT'S ANNUAL BUDGET CONGRESS WILL HAVE THREE CHOICES IF THE CAPS COME UNDER ATTACK AS THE CBO PREDICTS THEY WILL IT CAN HANG TOUGH WHICH WILL MEAN ANGRY DOCTORS INFURIATED HOSPITALS AND ENRAGED CONSTITUENTS WHO WILL SAY THEY ARE BEING DENIED THE HEALTH CARE THEY WERE PROMISED IT CAN LIFT THE CAPS AND PAY FOR THAT WITH HIGHER TAXES OR SPENDING CUTS SOMEWHERE ELSE OR IT CAN LIFT THE CAPS AND LET THE DEFICIT WIDEN BUT AS CBO WARNS THERE ISN'T ANY FREE LUNCH THE CONGRESSIONAL BUDGET OFFICE MAY BE WRONG MR CLINTON AND IRA MAGAZINER THE ARCHITECT OF HIS HEALTH PLAN MAY BE CORRECT WHEN THEY ARGUE THAT THEIR MANAGED COMPETITION WILL SQUEEZE OUT WASTE AND SLOW THE INCREASE OF RISING COSTS WITHOUT PRODUCING UNSUSTAINABLE PRESSURES BUT THE FISCAL RISKS THEY PROPOSE TO TAKE ARE ENORMOUS AND THEY GIVE NO HINT WHERE THEY WOULD GET THE MONEY TO PAY FOR THEIR ERROR IF THEY ARE WRONG 9402140049 940214 DENMARK TRADE SURPLUS SHRINKS COPENHAGEN DENMARK'S NOVEMBER TRADE SURPLUS FELL TO 487 BILLION KRONER 7128 MILLION FROM 498 BILLION KRONER IN OCTOBER THE DANISH STATISTICAL AGENCY SAID IMPORTS ROSE TO 1728 BILLION KRONER FROM 1688 BILLION KRONER THE MONTH BEFORE WHILE EXPORTS ROSE TO 2215 BILLION KRONER FROM 2186 BILLION KRONER THE AGENCY SAID THE FIGURES INDICATED THAT THE PICKUP IN EXPORTS THAT STARTED IN THE MIDDLE OF 1993 IS CONTINUING 9402140048 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TIFFANY NETWORK'S FARM TEAM ACHIEVES SPECIAL EFFECT GILDING LILLEHAMMER'S LILY BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER FOR 200 YEARS THE FAMILY OF O HENRIK BRAASTAD HAS RAISED OATS AND BARLEY ON A ROLLING FARM HERE ON THE STARK BANKS OF LAKE MJOSA THIS WEEK THE CROPS SUDDENLY LOOK A LITTLE DIFFERENT A SHEAF OF SATELLITE DISHES AND TWOKILOWATT SPOTLIGHTS SPROUTS FROM THE OLD WOODEN EAVES THE BACK OF THE BARN IS PILED HIGH WITH BALES OF FLASHING ELECTRONIC BOXES AND AROUND THE CORNER BELOW THE BRAASTADS' OLD ROOSTER WEATHERVANE HERE COME THE PERKY HOSTS OF CBS THIS MORNING HARRY SMITH AND PAULA ZAHN BLAH BLAH BLAH BLAH BOSNIA LIVE MUSIC THIS ANGEL THING SAYS MR SMITH CHEERILY HARRY AND PAULA TAKE A LEISURELY STROLL YELLS A REHEARSAL DIRECTOR THEY STROLL ON CUE A YOUNG SKIER GLIDES BY FLUFFY SNOW WAFTS DOWN ON AN OLD CLOCK TOWER AND A LITTLE WOODEN SLEIGH INSIDE THE BARN A CROWD OF TECHNICIANS HAPPILY WATCHES THE SCENE ON A WALL OF MONITORS CBS HAS STORMED INTO THE LITTLE BRAASTAD FARM AND SPENT A FORTUNE TRANSFORMING IT INTO THE QUAINTEST MOST AUTHENTIC POSTCARD IN ALL OF NORWAY CBS ENGINEERS BLASTED A HOLE IN THE BACK OF THE BARN TO CAPTURE A SWEEPING VISTA OF LILLEHAMMER THEY FILLED THE BACK PORCH WITH PRETTY WOODEN CHAIRS AND FARM IMPLEMENTS SOME FOUND IN MR BRAASTAD'S BASEMENT AND OTHERS CONSTRUCTED BY CBS'S PROP DESIGNERS THEY ALSO CREATED WHAT MUST CERTAINLY BE THE ONLY BARN IN THE GUDBRANDSDAL VALLEY WITH AN OFFICIAL GREEN ROOM WITH COMFY CHAIRS FOR OFFSTAGE TALKSHOW GUESTS BIG MIRRORS HANGING FROM THE ANCIENT STONE WALLS AND A TABLE PILED WITH TV MAKEUP THE WORLD WILL SEE THE HIGHLY TELEGENIC FRUITS OF ALL THESE LABORS DURING CBS'S MORNING BROADCASTS FROM THE OLYMPICS BEGINNING TODAY CBS WAS ZINGED BY CRITICS DURING ITS 1992 WINTER OLYMPICS BROADCAST FOR BUILDING A BLAND INTERIOR STUDIO THAT TOOK NO ADVANTAGE OF THE MAJESTIC ALPS SURROUNDING ALBERTVILLE A DENTIST'S WAITING ROOM SCOFFED THE NEW YORK TIMES CBS VOWED NOT TO MAKE THAT MISTAKE IN LILLEHAMMER WHEN YOU TURN ON THE TV YOU'LL SEE HARRY AND PAULA AND SAY THERE THEY ARE AT THE OLYMPICS' SAYS CBS THIS MORNING PRODUCER TED SAVAGLIO I HAVE THIS FANTASY THAT THEY'LL OPEN UP THE FIRST DAY ARRIVING AT THE FARM ON A SLEIGH THE TIFFANY NETWORK'S VENTURE INTO NORDIC AGRONOMY BEGAN TWO YEARS AGO WHEN ITS DIRECTOR OF OLYMPICS OPERATIONS GOT LOST ON A BACK ROAD IN LILLEHAMMER THE DIRECTOR BARRY ZEGEL FOUND HIMSELF ON A GRACEFUL EMBANKMENT WITH A STATELY PINK GINGERBREAD HOUSE A CLOCK TOWER SOME TRADITIONAL WOODEN FARM BUILDINGS AND A SPECTACULAR VIEW OF LILLEHAMMER ACROSS THE LAKE MR ZEGEL SMELLED TV HEAVEN AND TOOK A CBS THIS MORNING PRODUCER BACK TO TAKE A LOOK WE JUST DROVE IN NOT KNOWING IF THEY WERE GOING TO SHOOT AT US HE SAYS FROM A FARMHOUSE WINDOW THE SHUTTERS FLEW OPEN AND A HEAD POKED OUT SHOUTING IN NORWEGIAN THE CBS DUO SHOUTED BACK THE MAN IN THE WINDOW SUMMONED HIS ENGLISH AND TOLD THEM TO COME BACK IN THE AFTERNOON WHEN THEY RETURNED MR BRAASTAD GREETED THEM AT THE DOOR AND SHOWED THEM TO A COZY DINING ROOM LAID OUT FOR TEA HIS DAUGHTERS HENRIETTE AND JOHANNE PARADED IN WITH A TRAY OF FRESHBAKED WAFFLES AND PRESERVES IT WAS KIND OF LIKE OUT OF A BMOVIE MR ZEGEL SAYS MR ZEGEL RETURNED SOON AFTERWARD IMPATIENT TO TALK BUSINESS IT WENT VERY SLOWLY IT WOULD TAKE TWO HOURS TO GET THROUGH WITH THE WAFFLES HE SAYS HE CAME BACK MORE THAN 20 TIMES MR BRAASTAD AN EARNEST BEARDED MAN WITH BEN FRANKLIN GLASSES TOOK AN INTENSE INTEREST IN EVERY CONTRACTUAL DETAIL THE FARMER AND THE BROADCASTER BECAME FRIENDS MR ZEGEL FOUND OUT THAT WHEN MR BRAASTAD ISN'T TENDING THE OATS AND BARLEY HE RUNS A BUSINESS CONSULTANCY SPECIALIZING IN THE ECONOMICS OF INDUSTRIAL TECHNOLOGY MR BRAASTAD INVITED MR ZEGEL OVER FOR A GALA CHRISTMAS FEAST WITH REINDEER LUTEFISK AQUAVIT AND NORWEGIAN CAROLS BARRY AND I HAVE LEARNED QUITE A LOT ABOUT EACH OTHER AND US BROADCASTING AND NORWEGIAN DAILY LIFE DURING THIS COOPERATION MR BRAASTAD SAYS DURING THE LAST WEEKEND OF PREPARATIONS THE BOUNDARY BETWEEN US BROADCASTING AND NORWEGIAN DAILY LIFE IS GETTING BLURRY CAMERAMEN AND PRODUCERS WITH HEADSETS ARE TRAMPING PAST MR BRAASTAD'S TRACTOR A QUINTET OF YOUNG FIDDLERS AND MOUTH HARPISTS IN FOLK COSTUME ARE PLAYING DOWN BY THE BARN WITH A LAD IN BLACK LEGGINGS DOING TRADITIONAL NORWEGIAN BREAKDANCING BESIDE A LASS HOLDING A BLACK HAT ON A STICK I WANT THAT KICK TO HAPPEN AT THE BEGINNING SHOUTS DIRECTOR JEFF KAYE I AM GOING LIKE THIS ASKS THE DANCER MADS BOHLE HE DEFTLY KICKS THE HAT OFF THE STICK AND MANEUVERS TO CATCH IT ON HIS HEAD GREAT GREAT WAIT FOR YOUR CUE FROM NANCY LATER THIS WEEK AN ENCAMPMENT OF INDIGENOUS NORWEGIAN SAMI PEOPLE IS EXPECTED TO APPEAR ON THE FROZEN LAKE WITH REINDEER LOOK FOR CBS WEATHERMAN MARK MCEWEN CLOSE ON THEIR TRAIL 9402140047 940214 SOUTHWEST AIRLINES' MORRIS UNIT EUGENE ORE MORRIS AIR A UNIT OF SOUTHWEST AIRLINES WILL DISCONTINUE ITS DAILY SERVICE TO AND FROM EUGENE EFFECTIVE APRIL 4 THE COMPANY SAID IT IS DISCONTINUING THE FLIGHTS TO CONSOLIDATE ITS AIRCRAFT AND CREW RESOURCES IN OTHER PARTS OF ITS SYSTEM 9402140046 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES A MOE A MONS AAMODT LOVE THAT UPSET IN THE DOWNHILL BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL KVITFJELL TONYA GETS TO SKATE AND TOMMY MOE WINS THE DOWNHILL IT DOESN'T GET MUCH BETTER THAN THAT DOES IT OK THAT'S A BAD QUESTION LET ME PUT IT THIS WAY HOW 'BOUT THAT TOMMY MOE NO YANK GROANS FOR THAT ONE ON A COLD BRIGHT DAY THAT WILL LIGHT THE OFTDIM ANNALS OF US SKIING THE SUNNY MR MOE A NATIVE OF PALMER ALASKA ROCKETED DOWN WHITE MOUNTAIN NAMED FOR THE DEPOSIT OF PALE QUARTZITE NEAR ITS PEAK TO WIN THE FIRST AND BY MANY ESTIMATIONS PREMIER EVENT ON THE ALPINE SKIING SCHEDULE IN THESE WINTER OLYMPICS MR MOE'S VICTORY WAS AN UPSET BY MOST EXPECTATIONS HE'D NEVER BEFORE WON A WORLDCLASS EVENT AND ONLY LAST WINTER WAS SECOND TEAM ON A NOTHIGHLY RATED AMERICAN SQUAD AMONG THEM WAS HIS OWN MY GOAL WAS A TOPSIX FINISH THE SOONTOBE24YEAROLD ADMITTED ANOTHER WAS THAT OF MOST OF THE 38000 PEOPLE WHO CROWDED THIS FLEDGLING SKI AREA NORTH OF LILLEHAMMER IN HOPES OF SEEING A TRIUMPH BY THE NORWEGIAN HERO KJETIL ANDRE AAMODT AT 22 MR AAMODT IS YOUNGER THAN MR MOE BUT WAS A CERTIFIED ACE AS A RESULT OF HIS GOLD AND BRONZE MEDALS IN THE GIANT SLALOM AND DOWNHILLSLALOMHYBRID SUPER G AT THE ALBERTVILLE OLYMPICS OF TWO YEARS AGO THIS TIME THE SEVENTH SKIER OUT OF THE GATE HE ZIPPED INTO FIRST PLACE AS HIS COUNTRYMEN WAVED THEIR FLAGS AND CLANGED THEIR COWBELLS THEIR ELATION WAS STILL AT FULL VOLUME WHEN MR MOE THE NEXT OUT STARTED HIS RUN IT QUIETED AS HIS FRACTIONAL TIMES CLOSE TO MR AAMODT'S WERE ANNOUNCED AND ENDED IN A KIND OF COLLECTIVE GASP WHEN THE AMERICAN'S CLOCKING OF 14575 EDGED OUT THEIR MAN I WAS SURPRISED WHEN I LOOKED UP AND SAW I'D TAKEN FIRST AND WASN'T SURE I'D STAY THERE MY FIRST THOUGHT WAS THAT A MEDAL WAS A POSSIBILITY MR MOE ALLOWED BUT HE ADDED I ALWAYS KNEW I COULD SKI FAST AND THAT IT WAS JUST A MATTER OF TIME BEFORE I'D WIN AS OFTEN IS THE CASE IN BIGTIME INTERNATIONAL SKIING THE AMOUNT OF TIME THAT MATTERED HERE WAS SMALL 004 SECOND SEPARATED MR MOE FROM MR AAMODT WITH THE CANADIAN ED PODIVINSKY AN ADDITIONAL 008 SECOND BACK IN THIRD A WIGGLE HERE AND A WOBBLE THERE OVER THE 2936METER RUN MADE THE DIFFERENCE I THINK I LOST 001 SECOND AT THE TOP PART 002 IN THE MIDDLE AND 001 AT THE BOTTOM MR AAMODT SMILED THAT'S A SKI JOKE A BIGGER DIFFERENCE WAS IN THE NATIONALITIES OF THE TOP THREE FINISHERS THIS WAS THE FIRST TIME THAT THE COUNTRIES OF THE ALPS AUSTRIA SWITZERLAND FRANCE AND ITALY ALL WERE DENIED AN OLYMPIC MEN'S DOWNHILL MEDAL USUALLY THEY WIN ALL THREE GIVEN MESSRS MOE AND PODIVINSKY'S NORTH AMERICAN RESIDENCE AND MR AAMODT'S COLLOQUIAL MASTERY OF THAT CONTINENT'S PREDOMINANT TONGUE THE OUTCOME MIGHT BE DUBBED THE TRIUMPH OF THE ENGLISHSPEAKING PEOPLES THE ONLY PREVIOUS US MEDAL IN 12 OLYMPIC DOWNHILLS WAS BILL JOHNSON'S GOLD IN 1984 AT SARAJEVO THE KVITFJELL COURSE WAS PRAISED BY JUST ABOUT ALL THE COMPETITORS FOR ITS FAIRNESS ALTHOUGH THEIR DEFINITION OF WHAT THAT MEANT MIGHT DIFFER FROM YOURS AND MINE DOWNHILL SKIERS AFTER ALL ARE PEOPLE WHO FLING THEMSELVES INTO THE ABYSS WITH THE FULL EXPECTATION OF COMING OUT THE OTHER SIDE IT WAS GREAT THERE WERE TURNS AT THE TOP AND JUMPS IN THE MIDDLE AND IT WAS FAST AT THE END MR AAMODT EXPLAINED SO THERE THE COURSE ALSO WAS SAFE WHICH EVERYONE CAN APPECIATE JUST FOUR OF YESTERDAY'S 55 STARTERS FAILED TO FINISH AND ALL OF THOSE WALKED AWAY FROM THEIR FALLS APPARENTLY IT'S A LAYOUT THAT CAN BE ENJOYED ON MORE THAN ONE LEVEL AS THE MOVIE CRITICS MIGHT SAY LAST YEAR JUST AFTER THE RUN WAS COMPLETE NORWAY'S DIGNIFIED QUEEN SONYA THEN 55 YEARS OLD NEGOTIATED IT NOT ONCE BUT THRICE HER TIMES WERE NOT ANNOUNCED HOWEVER FOR MR MOE A TIGHTLY WOUND 5FOOT10 THE VICTORY CAPPED AN ATHLETIC CAREER THAT'S BEEN REMARKABLE FOR ITS MANY UPS AND DOWNS OVER A RELATIVELY BRIEF PERIOD HE WAS SOMETHING OF A PRODIGY IN HIS SPORT GAINING A SIXTHPLACE FINISH IN THE US NATIONAL CHAMPIONSHIPS BEFORE THE AGE OF 16 AND WINNING THREE MEDALS TWO OF THEM GOLD OVER FOUR WORLD JUNIOR COMPETITIONS HE ALSO WAS KICKED OFF A COUPLE OF NATIONAL TEAMS AS A YOUTH AND LAST SEASON NEVER PLACED HIGHER THAN 13TH IN A WORLD CUP RACE HE ENDED THE YEAR STRONGLY WITH A FIFTH PLACE IN THE DOWNHILL AT THE WORLD CHAMPIONSHIPS IN MORIOKA JAPAN AND IN DECEMBER COPPED A BRONZE MEDAL IN A SUPER G AT VAL D'ISERE IN FRANCE BUT HE STILL CAME HERE AS THE NO 2 AMERICAN BEHIND THE VETERAN AJ KITT WHO WAS TO WIND UP 17TH IN ANSWER TO A DIRECT QUESTION MR MOE CONFESSED TO GETTING INVOLVED WITH CERTAIN THINGS IE DRUGS AND HAVING HAD SOME ROUGH YEARS AS AN ADOLESCENT BUT HE SAID HE NEVER CONSIDERED HIMSELF A DRUG USER JUST A NORMAL AMERICAN KID AND BESIDES THAT WAS IN THE PAST HE CREDITED HIS SUDDEN SURGE TO A WILLINGNESS TO FOLLOW COACHES' ADVICE AND AN APPRECIATION OF THE VALUE OF REST IN TRAINING AFTER THIS PAST CHRISTMAS HE REMOVED HIMSELF FROM THE ICEANDSNOW CIRCUIT FOR AN EIGHTDAY TRIP TO THE CANARY ISLANDS WHERE AMONG OTHER THINGS I STUCK MY FEET IN THE WARM SAND SHELVING SOME EXPECTATIONS HELPED TOO TODAY I TRIED NOT TO BE OVERWHELMED BY THE FACT THIS WAS A BIG OLYMPIC DOWNHILL HE SAID INSTEAD OF THINKING MEDAL I TRIED TO KEEP MY MIND ON THE SIMPLE PARTS OF SKIING KEEPING MY HANDS OUT IN FRONT OF ME AND STAYING FORWARD BEFORE I KNEW IT I WAS AT THE BOTTOM TIME SURE FLIES WHEN YOU'RE HAVING FUN 9402140045 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY FOR DOWNHILL RACERS THE PRESSURE IS PACKED TIGHTER THAN THE SNOW BY ROGER THUROW AND DANIEL BENJAMIN STAFF REPORTERS OF THE WALL STREET JOURNAL AH THE LIFE OF AN OLYMPIC SKIER ALPINE CHALETS JETSET TRAVEL BEAUTIFUL PEOPLE APRES SKI PRESSURE IT IS A MERCILESS PRESSURE THAT MEASURES A SKIER'S WORTH IN FRACTIONS OF A SECOND A MERE BLINK OF THE EYE BEING THE DIFFERENCE BETWEEN LEGEND AND LOUSE A BLINDING PRESSURE THAT FORCES SKIERS TO BLOCK OUT THE DANGERS OF HURTLING DOWN ICY TWISTING SLOPES AT SPEEDS THAT CAN HIT 80 MILES PER HOUR A CHALLENGING PRESSURE THAT PRODDED AUSTRIAN ULRIKE MAIER MOTHER OF A FOURYEAROLD DAUGHTER TO TAKE ONE LAST RUN AT THE ELUSIVE OLYMPIC GOLD BEFORE RETIRING SHE DIDN'T MAKE IT DYING IN A HORRENDOUS CRASH ON A DOWNHILL COURSE IN GERMANY TWO WEEKS AGO THIS A STORY ABOUT THAT PRESSURE AND HOW IT HAS PROPELLED AND HAUNTED THE CAREERS OF TWO OLYMPIC SKIERS ONE AUSTRIA'S PETRA KRONBERGER WHO WALKED AWAY FROM THE SPORT AT THE AGE OF 23 AFTER A FABULOUSLY SUCCESSFUL CAREER THE OTHER GERMANY'S KATJA SEIZINGER WHO AT 21 IS PUSHING TO REACH THE TOP MS KRONBERGER WAS THE RADIANT STAR OF THE 1992 WINTER OLYMPICS IN ALBERTVILLE CAPTURING GOLD MEDALS IN THE SLALOM AND THE ALPINE COMBINED HER EXUBERANTLY SMILING FACE FOR A RARE MOMENT RELIEVED OF THE PRESSURE LEAPT FROM THE COVER OF TIME MAGAZINE WHEN I WON THE SLALOM IT WAS LIKE A BIG STONE FELL FROM MY SHOULDERS SHE REMEMBERS I COULDN'T IMAGINE A MORE WONDERFUL DAY IN MY SKIING CAREER WITH THE NEXT WINTER OLYMPICS ONLY TWO YEARS AWAY EVERYONE IN THE SKI WORLD ASSUMED MS KRONBERGER WOULD TRIUMPHANTLY ARRIVE IN LILLEHAMMER DETERMINED TO DEFEND HER MEDALS AND ADD TO HER LEGEND INSTEAD IN EARLY 1993 SHE PULLED A MICHAEL JORDAN LEAVING HER SPORT WHILE AT THE PINNACLE OF SUCCESS ONCE THE STONE WAS OFF HER SHOULDERS SHE COULDN'T BRING HERSELF TO LIFT IT BACK UP AGAIN SHE TRIED COMPETING IN THE OPENING RACES OF THE 1993 WORLD CUP SEASON AND FINISHED IN THE MIDDLE OF THE PACK THE STRANGEST THING WAS THAT I THOUGHT I COULD SKI WITHOUT PRESSURE SHE SAYS REFLECTING ON THE FINAL DAYS OF HER CAREER BUT I COULDN'T THEN CAME THE FEAR OF SERIOUS INJURY A FEAR THAT I ALWAYS HAD BUT WAS ABLE TO REPRESS BECAUSE I PUSHED TOWARD MY GOALS OF WINNING I REACHED THOSE GOALS AND I FOUND I COULDN'T REPRESS THE FEAR ANY LONGER SUDDENLY SHE WAS LIKE ANY OTHER PERSON STARING AT THE DOWNHILL SLOPE FROM THE STARTING GATE QUAKING AT THE DANGERS LURKING BELOW THUS INSTEAD OF GOING FOR GOLD IN LILLEHAMMER MS KRONBERGER IS DILIGENTLY STUDYING SUCH THINGS AS MATH AND BIOLOGY IN A SALZBURG HIGH SCHOOL AND THE PRESSUREPACKED BLINDERS REMOVED CLEARLY DISSECTING THE SKI CIRCUS THAT LEFT LITTLE ROOM FOR ANYTHING BUT SKIING YOU KNOW SHE SAYS WISTFULLY I ALWAYS WANTED TO BE AN AU PAIR GIRL BUT ALWAYS THERE WERE RACES TO BE WON WHEN YOU ARE IN A HIGHPERFORMANCE SPORT YOU LIVE IN A LAND OF EXTREMES IT IS AN IMAGINARY WORLD NOT THE WORLD WHERE MOST PEOPLE LIVE THE LINE BETWEEN SUCCESS AND FAILURE IS SO THIN WHEN YOU ARE ON TOP YOU'RE THE SKI QUEEN IF YOU ARE 002 OF A SECOND SLOWER YOU'RE A FAILURE MS KRONBERGER SAYS THE GOAL IS TO STAND ON THE TOP OF THE MEDALS PLATFORM THE OTHERS ARE FORGOTTEN FOR ATHLETES WHO TRAIN FROM DAWN TO DUSK 11 MONTHS OF THE YEAR SINCE THEY BECAME TEENAGERS FAILURE AND IGNOMINY ARE TERRIFYING PROSPECTS YOU FEEL THE PRESSURE FROM ALL SIDES EXPLAINS MS KRONBERGER FROM A SKICRAZY PUBLIC FROM THE CORPORATE SPONSORS FROM THE PRESS AND ABOVE ALL FROM YOURSELF A SKIER'S PRECIOUS LEISURE MOMENTS SHE NOTES ARE CLOUDED WITH THOUGHTS OF THE NEXT RACE EVEN IN SLEEP COME VISIONS OF SNAKING THROUGH THE SLALOM GATES YOU HAVE THIS AMBITION TO SUCCEED SHE SAYS AND ONE SUCCESS JUST INCREASES THE PRESSURE FOR MORE I NEVER HAD AN OFF' SEASON WHEN I DIDN'T WIN AND NOBODY CARED ABOUT ME ON ONE HAND I SAY THANK GOD' BUT ON THE OTHER HAND I COULD HAVE PROFITED FROM THAT SHE SAYS IT WOULD HAVE GIVEN ME TIME TO THINK TIME TO APPRECIATE MY SUCCESS NOW PETRA KRONBERGER AN OLYMPIC SPECTATOR FINALLY HAS THE TIME THE PRESSURE IS OFF BUT IT STILL HAUNTS HER TEN DAYS AGO IN AN ALPINE VALLEY SHE LAID HER FORMER TEAMMATE ULRIKE MAIER TO REST MS SEIZINGER A DOWNHILL SPECIALIST HAD LITTLE TIME TO MOURN THERE WERE THE FINAL WORLD CUP RACES AS TUNEUPS FOR THE OLYMPICS SHE COULDN'T LET UP FOR SHE ARRIVES IN LILLEHAMMER BEARING A MOUNTAIN OF EXPECTATIONS FROM A SPORTSMAD NATION CRAVING GLOBAL ACCLAIM AT ALBERTVILLE SHE WAS UNIFIED GERMANY'S MAIN HOPE FOR ALPINE GLORY EVERY RUN PRACTICE OR REAL SEEMED TO MERIT A BULLETIN IN THE GERMAN MEDIA WHEN SHE MANAGED JUST THE BRONZE IN THE SUPER G AND FINISHED A HEARTBREAKING FOURTH IN THE DOWNHILL SHE WAS BURIED BENEATH AN AVALANCHE OF CROSSEXAMINATION BY HER COUNTRYMEN ALL 80 MILLION OF THEM IT SEEMED IT'S NOT EASY WHEN YOU HAVE A DISAPPOINTMENT THE CAMERA IS RIGHT THERE AND THEY WANT AN ANALYSIS AND EVERY DETAIL AND SOMETIMES THEY JUST START MAKING ACCUSATIONS SAYS MS SEIZINGER IN GERMANY YOU'RE OVERPRAISED ONE DAY AND THEY RUN YOU DOWN THE NEXT IF YOU'RE NOT ON TOP SINCE ALBERTVILLE TRAINING AND COMPETING ALMOST NONSTOP HER PURSUIT OF VICTORY HAS BEEN SINGLEMINDED SHE HAS WON BACKTOBACK WORLD CUP DOWNHILL CROWNS AS WELL AS LAST YEAR'S SUPER G TITLE AND BARELY MISSED THE OVERALL CHAMPIONSHIP AND WITH RECENT TRIUMPHS IN THIS SEASON'S WORLD CUP CAMPAIGN SHE IS THE FAVORITE IN THE SPEED RACES AT LILLEHAMMER BUT SO MUCH SUCCESS IS HEAVY BAGGAGE FOR THE BEST SKIER EVER TO EMERGE FROM THE FLATLANDS OF CENTRAL GERMANY GROWING UP NEAR HEIDELBERG FAR FROM THE ALPS SHE WAS DRIVEN BY HER FATHER TO A BLACK FOREST HILLOCK ABOUT A THOUSAND FEET HIGH NOW WHILE OTHERS FERRY HIS DAUGHTER FROM MOUNTAIN TO MOUNTAIN HER FATHER SIFTS THE 10 OR 20 INTERVIEW REQUESTS THAT ARRIVE DAILY FOR KATJA IN GERMANY WHERE A CARNIVOROUS PRESS VIRTUALLY DEVOURS SPORTS HEROES TENNIS STARS BORIS BECKER AND STEFFI GRAF HAVE SOUGHT REFUGE IN MONACO AND NEW YORK RESPECTIVELY MS SEIZINGER'S WORLD CUP RESULTS ARE EVEN FRONTPAGE NEWS IN THE STUFFY FRANKFURTER ALLGEMEINE ZEITUNG THE NEWSPAPER'S MAGAZINE HAS PROFILED HER AT LENGTH AND EVEN COINED AN ADJECTIVE TO DESCRIBE HER MITTERMAIERISCH AFTER ROSI MITTERMAIER THE OLYMPIC AND WORLD CUP WINNER OF THE 1970S AND THE MOST SUCCESSFUL WOMAN SKIER GERMANY HAS PRODUCED SO FAR MS SEIZINGER HAS BEEN ABLE TO DEFLECT SOME OF THIS ATTENTION WITH A WINSOME INTERVIEW TECHNIQUE I ALWAYS SAY THAT SPORTS IS ONE OF THE MOST BEAUTIFUL SIDELIGHTS IN LIFE AND THAT ITS IMPORTANCE SHOULDN'T BE OVERDONE BUT THE OLYMPICS SPECIALIZES IN OVERKILL AS DOES THE DEMANDING GERMAN PUBLIC THEY EXPECT MIRACLES MS SEIZINGER SAYS SHE RESIGNEDLY SHRUGS HER SHOULDERS BUT THE PRESSURE DOESN'T BUDGE 9402140044 940214 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RESPONDING TO SPREADING PROTESTS OF RUSSIA'S FAILURE TO MEET PAYROLLS PRIME MINISTER VIKTOR CHERNOMYRDIN ORDERED THE GOVERNMENT TO BEGIN PAYING BILLIONS OF RUBLES IN BACK WAGES TO COAL MINERS SCATTERED STRIKES BY THE UNION WORKERS IN SIBERIA IN RECENT WEEKS HAD CUT OUTPUT THE ORDER LAST FRIDAY FOR THE MINERS MANY OF WHOM HAVEN'T BEEN PAID SINCE NOVEMBER CAME A DAY AFTER A PROMISE TO PAY BILLIONS IN BACK WAGES TO COMMUNICATIONS WORKERS TO SETTLE A ONEDAY STRIKE THAT HALTED RADIO AND TELEVISION BROADCASTS MEANWHILE THE TIMBER INDUSTRY ALSO DEMANDING PAYCHECKS THREATENED TO HALT SHIPMENTS STARTING NEXT MONDAY IN RECENT WEEKS MR CHERNOMYRDIN ALSO HAS APPROVED PAYMENTS TO DEFENSE AND AGRICULTURAL WORKERS MANY REFORMERS IN PARLIAMENT HAVE ACCUSED THE CABINET OF KNUCKLING UNDER TO INFLATIONARY SPENDING BUT OFFICIALS INSISTED THE BUDGET DEFICIT WILL BE CUT THIS YEAR REDUCING THE NEED FOR CENTRAL BANK FINANCING THAT FUELS INFLATION NEGOTIATIONS ON A CONTRACT FOR THE 32 MILLION MEMBERS OF GERMANY'S IG METALL METALWORKERS UNION BROKE DOWN FRIDAY AFTER TWO WEEKS OF BRIEF WARNING STRIKES THE GESAMTMETALL INDUSTRIAL EMPLOYER GROUP CITED DISAGREEMENT ABOUT WORKING HOURS THE UNION DECLARING FURTHER TALKS POINTLESS NEXT MONDAY WILL SET A DATE FOR A STRIKE VOTE GESAMTMETALL OFFERED JOBSECURITY PROPOSALS SUCH AS LETTING COMPANIES EXPAND OR REDUCE THE WORKWEEK AS NEEDED IG METALL SAID IT OFFERED WORKWEEK FLEXIBILITY BUT EMPLOYERS INSISTED ON A PAY FREEZE AND VACATION REDUCTIONS THE UNION HAS SOUGHT WAGE BOOSTS BETWEEN 55 AND 6 EVEN ON WORKDAYS MANY GREEKS PARTY IN ATHENS NIGHTCLUBS UNTIL 7 AM THE GOVERNMENT HOPING TO IMPROVE PRODUCTIVITY INTRODUCED AN ORDER FOR CLUBS TO SHUT AT 2 AM THE COUNTRY'S FIRST OFFICIAL CLOSING TIME THE PUBLIC ORDER MINISTRY WANTS TO REDUCE CRIME AND PUT AN END TO STUDENTS' SLEEPINESS AND PUBLIC OFFICIALS' ABSENTEEISM DUE TO HANGOVERS CLUBS SERVING TEENAGERS OR VIOLATING THE CLOSING HOUR COULD LOSE THEIR LICENSES OPPONENTS SAID THE ORDER ISN'T ENFORCEABLE AND WARNED THE MINISTRY THAT IT COULDN'T MAKE PEOPLE GO TO BED EARLY CLUB OWNERS SAID THE ORDER WOULD RUIN THEM FINANCIALLY AUSTRALIA HAS AGREED TO STOP USING EUROPEAN GEOGRAPHICAL NAMES SUCH AS CHAMPAGNE AND BURGUNDY FOR ITS WINES IN RETURN FOR GREATER ACCESS TO EUROPEAN UNION MARKETS THE DEAL IS THE FIRST BETWEEN THE EU AND A COMPETING WINE PRODUCER USING ITS PLACE NAMES IN AUSTRALIA'S RAPIDLY GROWING WINE INDUSTRY EXPORTS SOARED TO 244 MILLION IN 1993 FROM 15 MILLION SEVEN YEARS EARLIER THE INDUSTRY EXPECTS ANNUAL EXPORTS TO TOTAL 700 MILLION BY THE YEAR 2000 MOSTLY TO THE 12COUNTRY EUROPEAN TRADE BLOC ABOUT 10 BILLION A YEAR IN RUSSIAN EXPORT EARNINGS OR 23 OF LAST YEAR'S 43 BILLION TOTAL HASN'T RETURNED TO THE COUNTRY THE GOVERNMENT SAID LAST FALL RUSSIA INTRODUCED A SYSTEM TO TIGHTEN CONTROL OF EXPORT EARNINGS IN AN EFFORT TO PREVENT CAPITAL FLIGHT ESTIMATED AT AS MUCH AS 15 BILLION A YEAR BECAUSE OF POLITICAL AND ECONOMIC INSTABILITY MANY RUSSIANS HAVE MOVED ASSETS TO SAFER INVESTMENTS ABROAD EXPORTERS CAN EASILY SHELTER CAPITAL IN OTHER COUNTRIES BY UNDERREPORTING THE VALUE OF GOODS SOLD THERE AND DEPOSITING THE DIFFERENCE IN FOREIGN ACCOUNTS TO PROTEST UNPAID WAGES ABOUT 3000 RAILWAY REPAIR WORKERS IN ROMANIA STONED WINDOWS OF THE GOVERNMENT TRANSPORT AGENCY'S HEADQUARTERS IN BUCHAREST WHICH RIOT POLICE DEFENDED THE DEMONSTRATION WAS A PRELUDE TO SEVERAL MAJOR STRIKES PLANNED FOR THIS WEEK SOME MAINTENANCE EMPLOYEES WEREN'T PAID LAST WEEK BECAUSE THE STATE RAILWAY HADN'T PAID THEIR COMPANY 16 MILLION FOR WORK CONDUCTED IN THE PAST TWO MONTHS THE BUYING POWER OF ROMANIANS' WAGES AVERAGING LESS THAN 50 A MONTH HAS ERODED AS INFLATION LAST YEAR RAN AT ALMOST 300 DESPITE SOME STRONG RESISTANCE THE EUROPEAN PARLIAMENT HAS ADOPTED AN AMENDED EUROPEAN COMMISSION PROPOSAL TO PROMOTE THE USE OF MOTOR FUELS DERIVED FROM AGRICULTURAL CROPS THE PLAN WOULD SET UP A PREFERENTIAL TAX SYSTEM FOR ALTERNATIVE FUELS SUCH AS METHANOL BIOETHANOL AND VEGETABLE OILS NOW FAR MORE EXPENSIVE THAN CONVENTIONAL FUELS PROPONENTS SAID THE PLAN WOULD HELP STEM THE LOSS OF FARM JOBS REDUCE THE EU'S DEPENDENCE ON IMPORTED OIL AND CUT SMOG AND CARBONMONOXIDE POLLUTION BUT OTHER MEMBERS OF THE EU ASSEMBLY WEREN'T SO SURE SOME QUESTIONED THE MEASURE'S ENVIRONMENTAL CREDENTIALS ARGUING THAT BIOFUELS WOULD INCREASE OTHER FORMS OF AIR POLLUTION AND COMPOUND WATER POLLUTION CAUSED BY FERTILIZERS SOME PARLIAMENT MEMBERS GRIPED THAT THE PROPOSAL WAS BILLED AS HIGHMINDED BUT AMOUNTED TO A SUBSIDY FOR FARMERS AT LEAST 150000 WORKERS FROM ABOUT 50 COMPANIES IN INDONESIA STAGED PROTESTS IN NINE CITIES DEMANDING A HIGHER MINIMUM WAGE AND THE RELEASE OF ARRESTED UNION LEADERS THE GOVERNMENT RECOGNIZES JUST ONE LABOR UNION BULGARIA FAVORS JOINING WITH ROMANIA TO BUILD TWO BRIDGES ACROSS THE DANUBE RIVER A POTENTIAL 240 MILLION JOB THE ONLY BRIDGE LINKING THE TWO COUNTRIES HAS TRAFFIC JAMS 9402140043 940214 BRAZIL AGREES TO CONTROLS ON MISSILERELATED EXPORTS SPECIAL TO THE WALL STREET JOURNAL BRASILIA BRAZIL IN A BID TO GET NEEDED TECHNOLOGY FOR ITS SPACE PROGRAM BRAZIL AGREED TO BE BOUND BY INTERNATIONAL CONTROLS ON CERTAIN SENSITIVE MISSILERELATED EXPORTS A FOREIGN MINISTRY COMMUNIQUE ADDRESSED TO THE 25 MEMBERS OF THE MISSILE TECHNOLOGY CONTROL REGIME SAID BRAZIL WAS READY TO FOLLOW THE GROUP'S RULES THE GROUP WHICH INCLUDES THE US AND OTHER MAJOR INDUSTRIAL POWERS WAS CREATED IN 1987 TO CURB THE RISK OF PROLIFERATION OF MISSILES AND OTHER WEAPONS OF MASS DESTRUCTION ANTONIO GUERREIRO CHIEF OF THE MINISTRY'S SENSITIVE TECHNOLOGIES DEPARTMENT SAID BRAZIL NOW EXPECTS TO GET HELP FOR ITS SPACE PROGRAM BRAZIL'S SPACE INDUSTRY PRODUCES SATELLITES BUT LACKS A TRIGGERING DEVICE TO PUT THEM IN ORBIT THE US FRANCE RUSSIA AND CHINA HAVE DENIED BRAZIL THE TECHNOLOGY LARGELY BECAUSE OF BRAZIL'S RELUCTANCE TO ABIDE BY EXPORT CONTROL RULES MR GUERREIRO SAID BRAZIL COULD PRODUCE MEDIUMRANGE OR SHORTRANGE MISSILES BUT IS NOT INTERESTED IN THIS TYPE OF ARMS OUR SPACE PROGRAM IS DESIGNED TO SERVE PEACEFUL PURPOSES AND ITS GOAL IS TO BUILD ITS OWN SATELLITE LAUNCHER HE SAID 9402140042 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL TOMMY MOE OF THE US IN THE NARROWEST VICTORY EVER IN OLYMPIC ALPINE SKIING WON THE DOWNHILL RACE BY FOURHUNDREDTHS OF A SECOND OVER WORLD CUP LEADER KJETIL ANDRE AAMODT OF NORWAY I DIDN'T EVEN HAVE ANY THOUGHTS IN MY MIND THAT I WAS GOING TO WIN SAID MR MOE THE SECOND AMERICAN IN 10 YEARS TO WIN THE OLYMPIC DOWNHILL GOLD MEDAL I JUST FIGURED HEY I'LL SKI THE BEST I CAN MR MOE WHO TURNS 24 IN FOUR DAYS RACED DOWN THE COURSE IN 1 MINUTE 4575 SECONDS MR AAMODT FINISHED IN 14579 CANADA'S ED PODIVINSKY WITH A TIME OF 14587 TOOK THE BRONZE DEFENDING OLYMPIC CHAMPION PATRICK ORTLIEB OF AUSTRIA WAS FOURTH AND FIVETIME WORLD CUP OVERALL CHAMPION MARC GIRARDELLI OF LUXEMBOURG PLACED FIFTH TODAY WAS THE BIG DAY I KNEW I COULD GET IN THE TOP SIX AND ANYTHING BETTER WOULD BE WONDERFUL I'M REALLY EXCITED NOW SAID MR MOE WHO HADN'T WON A DOWNHILL IN MAJOR INTERNATIONAL MEET SINCE THE 1989 WORLD JUNIOR CHAMPIONSHIPS MANUELA DI CENTA OF ITALY TOOK THE LEAD EARLY AND HELD ON TO BEAT TWO RUSSIANS IN THE WOMEN'S 15KILOMETER FREESTYLE CROSSCOUNTRY SKI RACE IT WAS THE FIRST MAJOR TITLE FOR MS DI CENTA 31 YEARS OLD WHO COVERED THE COURSE IN 39 MINUTES 445 SECONDS LYUBOV EGOROVA OF RUSSIA WHO WON THREE GOLD AND TWO SILVER MEDALS AT THE 1992 ALBERTVILLE GAMES FINISHED SECOND IN 41030 NINA GAVRILUK OF RUSSIA TOOK THE BRONZE MEDAL IN 41104 MS DI CENTA LED MS EGOROVA WHO IS TIED FOR THE LEAD IN THE WORLD CUP STANDINGS AFTER WINNING TWO OF FIVE RACES BY MORE THAN 38 SECONDS AT THE 71 KILOMETER CHECKPOINT SHE ADDED THAT DURING THE RACE I KNEW I WAS DOING WELL I GOT THE INTERMEDIATE TIMES DURING THE RACE AND I KNEW I WAS GOING FAST LAURA MCCABE OF PARK CITY UTAH WAS 34TH OUT OF 53 FINISHERS FOR THE BEST AMERICAN FINISH JOHANN OLAV KOSS OF NORWAY WON THE GOLD MEDAL IN THE MEN'S 5000METER SPEEDSKATING RACE WITH A WORLD RECORD TIME OF 6 MINUTES 3496 SECONDS HE TOPPED HIS OWN WORLD RECORD OF 63553 SET ON THE SAME TRACK IN DECEMBER AND THE OLYMPIC RECORD OF 64268 POSTED EARLIER IN THE EVENT BY HIS NORWEGIAN TEAMMATE KJELL STORELID WHO WAS SECOND THIRD WAS RINTJE RITSMA OF THE NETHERLANDS IN 64394 THE US TEAM CAME FROM TWO GOALS BEHIND IN THE FINAL PERIOD TO TIE FRANCE 44 PETER LAVIOLETTE AND BRIAN ROLSTON SCORED WITHIN THREE MINUTES OF EACH OTHER TO DRAW EVEN IN THE POOL B MATCHES SWEDEN AND SLOVAKIA TIED 44 AND CANADA ROUTED ITALY 72 GEORG HACKL OF GERMANY THE DEFENDING OLYMPIC CHAMPION IS ONLY 001 OF A SECOND AHEAD OF HIS ARCHRIVAL MARKUS PROCK OF AUSTRIA THROUGH TWO RUNS OF THE MEN'S SINGLE LUGE MR HACKL SLID THE COURSE IN 50296 SECONDS ON HIS FIRST RUN AND FOLLOWED THAT WITH THE BEST TIME OF THE SECOND RUN 50560 ARNOLD ZOGGELER OF ITALY HAD THE THIRDBEST TIMES ON BOTH RUNS TO REMAIN IN CONTENTION 0186 OF A SECOND BEHIND MR HACKL LURKING IN FOURTH AND BIDDING TO BECOME THE FIRST MALE US LUGER TO WIN AN OLYMPIC MEDAL WAS DUNCAN KENNEDY HE IS 0364 BEHIND MR HACKL THE FINAL TWO RUNS ARE TODAY EKATERINA GORDEEVA AND SERGEI GRINKOV OF RUSSIA WON THE TECHNICAL PROGRAM WORTH ONETHIRD OF THE TOTAL MARK IN THE PAIRS EVENT THE 1988 GOLD MEDALISTS EDGED THE 1992 OLYMPIC WINNERS NATALIA MISHKUTIENOK AND ARTUR DMITRIEV ALSO OF RUSSIA THIRD WERE 1993 WORLD CHAMPIONS ISABELLE BRASSEUR AND LLOYD EISLER OF CANADA AMERICAN PAIRS JENNI MENO OF WESTLAKE OHIO AND TODD SAND OF THOUSAND OAKS CALIF WERE SIXTH THE FREE SKATING FINAL IS TOMORROW 9402140041 940214 US PLANS CRACKDOWN ON DELINQUENT FARM LOANS WASHINGTON AGRICULTURE SECRETARY MIKE ESPY SAID THE GOVERNMENT WOULD RESUME FORECLOSING ON FARM LOANS WITH THE START OF A PROGRAM TO ROOT OUT WHAT HIS DEPARTMENT TERMED SHORTCOMINGS OF THE LENDING PROGRAM WE WANT TO ANALYZE WHY LOANS ARE IN TROUBLE ELIMINATE PROCEDURAL ERRORS AND IMPLEMENT A TRACKING SYSTEM FOR NEW LOANS SAID MICHAEL DUNN HEAD OF THE AGRICULTURE DEPARTMENT'S FARMERS HOME ADMINISTRATION SECRETARY ESPY SUSPENDED FORECLOSURES OF UNPAID LOANS LAST MARCH AND BEGAN A REVIEW OF LOAN PRACTICES THE FOCUS NOW ACCORDING TO MR DUNN IS TO COLLECT AS MUCH AS WE CAN FROM OUTSTANDING LOANS HE ADDED THE DEPARTMENT EXPECTS TO HAVE THOSE DELINQUENT LOANS NOT ON APPEAL OR UNDER LITIGATION MADE CURRENT WITHIN TWO YEARS THE FARMERS HOME ADMINISTRATION HAS COME UNDER FIRE FOR FAILING TO SEEK REPAYMENT FROM FARMERS AND RANCHERS ESPECIALLY WEALTHY ONES WHO HAVE OUTSTANDING FEDERAL LOANS RECENT LEGISLATION BANNED THE AGENCY FROM MAKING LOANS OF MORE THAN 500000 9402140040 940214 NORTHWEST AIR TRAFFIC SLIPS MINNEAPOLIS NORTHWEST AIRLINES SAID JANUARY TRAFFIC SLIPPED 45 TO 439 BILLION REVENUE PASSENGER MILES FROM 460 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO 623 FROM 612 HOWEVER THE IMPROVEMENT REFLECTS A DECLINE IN OVERALL CAPACITY 9402140039 940214 CLINTON PLAN ALLOWS POLICE TO TAP INTO DATA HIGHWAY WASHINGTON THE CLINTON ADMINISTRATION IS READYING A BILL THAT WOULD REQUIRE TELECOMMUNICATIONS COMPANIES TO MAKE SURE THAT LAWENFORCEMENT OFFICIALS CAN CONTINUE TO MONITOR CONVERSATIONS ON THEIR NEW SYSTEMS AS COMMUNICATIONS TECHNOLOGY EVOLVES THE DRAFT BILL WHICH WOULD AFFECT THE CONVERGING TELEPHONE COMPUTER AND CABLETELEVISION INDUSTRIES IS BEING CIRCULATED AMONG THE FEDERAL BUREAU OF INVESTIGATION THE COMMERCE DEPARTMENT AND THE NATIONAL SECURITY COUNCIL A SIMILAR BILL WAS PROPOSED BY THE BUSH ADMINISTRATION BUT FELL VICTIM TO OPPOSITION FROM TELECOMMUNICATIONS COMPANIES AND CIVILLIBERTIES GROUPS A CLINTON ADMINISTRATION OFFICIAL SAID THE NEW BILL DESCRIBED IN SATURDAY'S NEW YORK TIMES WOULD EASE SEVERAL CONCERNS RAISED BY THESE GROUPS FOR EXAMPLE THE OFFICIAL SAID THE NEW BILL WOULD EXEMPT SEVERAL KINDS OF COMMUNICATIONS THAT WERE INCLUDED IN THE EARLIER BILL INCLUDING INHOUSE TELEPHONE COMMUNICATIONS AND MOST FORMS OF ELECTRONIC MAIL LAWENFORCEMENT AUTHORITIES WOULD BE REQUIRED TO GET COURT ORDERS TO MONITOR CONVERSATIONS ON NONCELLULAR CORDLESS TELEPHONES A PROTECTION THAT DOESN'T EXIST TODAY THE OFFICIAL SAID 9402140038 940214 BUSINESS BRIEF LITTLEFIELD ADAMS & CO CANCELLATION OF PACT FORCES REVISION OF 1STPERIOD NET LITTLEFIELD ADAMS & CO SAID IT DECIDED TO CANCEL A MARKETING AGREEMENT WITH AN OPERATOR OF MEDICAL AND CHIROPRACTIC CLINICS MAINTAINING THAT THE AGREEMENT HAD CONFUSED INVESTORS THE MOVE WILL FORCE LITTLEFIELD BASED IN SAN ANTONIO TO REDUCE THE EARNINGS IT REPORTED FOR THE FIRST QUARTER OF 1993 BY 52 MILLION THE COMPANY SAID FOLLOWING THE ANNOUNCEMENT TRADING IN LITTLEFIELD ADAMS SHARES RESUMED AFTER BEING SUSPENDED FOR TWO DAYS AT THE COMPANY'S REQUEST FRIDAY THE STOCK TUMBLED 3 OR 15 TO 16375 A SHARE IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE LITTLEFIELD A MAKER OF SPORTSWEAR AND SOME MEDICAL PRODUCTS SAID IT DECIDED TO RESCIND ITS YEAROLD AGREEMENT WITH AMERICARE HEALTH GROUP INC EAST ISLIP NY OFFICIALS OF AMERICARE COULDN'T BE REACHED FOR COMMENT ITS SHARES AREN'T WIDELY TRADED 9402140037 940214 TECHNOLOGY BRIEF CALGENE INC HIGH COSTS SLOW SALES LEAD TO FISCAL 2NDQUARTER LOSS HURT BY HIGH COSTS OF SALES AND ADMINISTRATION AND SLOW TOMATO SALES CALGENE INC REPORTED A FISCAL SECONDQUARTER LOSS FOR THE QUARTER ENDED DEC 31 THE BIOTECHNOLOGY CONCERN IN DAVIS CALIF POSTED A NET LOSS OF 108 MILLION OR 44 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 63 MILLION OR 28 CENTS A SHARE REVENUE ROSE TO 63 MILLION FROM 44 MILLION FOR THE SIX MONTHS CALGENE POSTED A LOSS OF 212 MILLION OR 86 CENTS A SHARE ON REVENUE OF 125 MILLION COMPARED WITH A YEAREARLIER NET LOSS OF 111 MILLION OR 51 CENTS A SHARE ON REVENUE OF 97 MILLION CALGENE HAS SAID IT EXPECTS TO REPORT A FISCAL 1994 LOSS GREATER THAN ITS 1993 LOSS OF 256 MILLION OR 113 A SHARE BECAUSE OF DELAYS IN GETTING FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS GENETICALLY ENGINEERED FLAVR SAVR TOMATO 9402140036 940214 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 12 NEW LISTINGS INCLUDING 10 INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE BEGAN TRADING TWO INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING AMLI RESIDENTIAL PROPERTIES INC CHICAGO UNDER AML AND SUMMIT PROPERTIES TRUST CHARLOTTE NC SMT BOTH REAL ESTATE INVESTMENT TRUSTS ARE INITIAL PUBLIC OFFERINGS ALSO THE BIG BOARD BEGAN TRADING AMERICAN DEPOSITORY SHARES OF ISTITUTO MOBILIARE ITALIANO SPA ROME A LARGE ITALIAN BANKING GROUP IMI WESTERN NATIONAL CORP CARMEL IND A LIFE INSURANCE COMPANY JOINED THE EXCHANGE AS AN INITIAL OFFERING RESULTING FROM A CARVEOUT FROM CONSECO INC NASDAQ ADDED THE FOLLOWING INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM CONSEP INC BEND ORE A MANUFACTURER OF PEST CONTROL PRODUCTS CSEP DAKTRONICS INC BROOKINGS SD A MANUFACTURER OF INFORMATION DISPLAY SYSTEMS DAKT ELTRON INTERNATIONAL INC CHATSWORTH CALIF A MANUFACTURER OF BAR CODE LABEL PRINTERS SOFTWARE AND RELATED ACCESSORIES ELTN INTERNATIONAL POST GROUP INC NEW YORK A PROVIDER OF POSTPRODUCTION SERVICES POST PROCEPT INC CAMBRIDGE MASS A DEVELOPER OF BIOLOGICALRELATED TECHNOLOGY PRCT SIGMATRON INTERNATIONAL INC ELK GROVE VILLAGE ILL A MANUFACTURER OF ELECTRONIC COMPONENTS AND OTHER PRODUCTS SGMA SONIC SOLUTIONS SAN RAFAEL CALIF A MANUFACTURER OF DIGITIAL AUDIO WORKSTATIONS SNIC TATHAM OFFSHORE INC HOUSTON AN INDEPENDENT ENERGY COMPANY TOFF TRISM INC FORT WORTH TEXAS A TRUCKING COMPANY TRSM AND WEBCO INDUSTRIES INC SAND SPRINGS CALIF A MANUFACTURER OF CARBON STEEL TUBING AND STAINLESS STEEL TUBING AND PIPES WBCO NASDAQ ALSO BEGAN TRADING INTERCEL INC LANETT ALA A CELLULAR TELEPHONE SYSTEM OPERATOR ICEL AND LEASEWAY TRANSPORTATION CORP BEACHWOOD OHIO A PROVIDER OF TRUCKING AND RELATED DISTRIBUTION SERVICES LSWY AMEX BEGAN TRADING AMERICAN PAGING INC A UNIT OF TELEPHONE AND DATA SYSTEMS INC MINNEAPOLIS A PROVIDER OF ONEWAY WIRELESS MANAGING SERVICES APP AN INITIAL OFFERING THE AMEX ALSO BEGAN TRADING THE INITIAL OFFERING OF COMMON SHARES AND CONVERTIBLE SUBORDINATED DEBENTURES OF PACIFIC GULF PROPERTIES INC NEWPORT BEACH CALIF THE COMPANY WAS ORGANIZED TO CONTINUE THE MULTIFAMILY AND INDUSTRIAL PROPERTY OPERATIONS OF SANTA ANITA REALTY ENTERPRISES INC AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON THE ADR'S OF THE FOLLOWING COMPANIES ON FEB 14 TEVA PHARMACEUTICAL INDUSTRIES LTD YPF SOCIEDAD ANONIMA AND GRUPO TRIBASA SA AMEX AND THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON ALUMAX INC AND ON REGENERON PHARMACEUTICALS INC AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING CLASS A COMMON SHARES OF CHESAPEAKE BIOLOGICAL LABORATORIES INC THE COMPANY PREVIOUSLY TRADED OVERTHECOUNTER THE CBOE ALSO BEGAN TRADING TRADING OPTIONS ON THE ADR'S OF ARACRUZ CELULOSE SA COCACOLA FEMSA SA CONSORCIO G GRUPO DINA CBOE BEGAN TRADING OPTIONS ON CENCALL COMMUNICATIONS CORP AND WILL BEGIN TRADING OPTIONS ON VIACOM INC CLASS B ON MONDAY FEB 14 9402140035 940214 STORM IN THE EAST FORCES MARKETS TO CLOSE EARLY NEW YORK THE SEVERE SNOWSTORM THAT SOCKED THE EASTERN SEABOARD FRIDAY CAUSED MOST MAJOR STOCK AND OTHER EXCHANGES TO CLOSE EARLY TRADING AT THE NEW YORK AND AMERICAN STOCK EXCHANGES AND ON THE NASDAQ STOCK MARKET ENDED AT 230 PM 1 1/2 HOURS EARLY THE PACIFIC EXCHANGE CLOSED AT 3 PM EASTERN TIME THE CHICAGO BOARD OPTIONS EXCHANGE THE COFFEE SUGAR & COCOA EXCHANGE COMMODITY EXCHANGE AND THE NEW YORK MERCANTILE EXCHANGE ALSO HAD SHORTENED SESSIONS THE CHICAGO MERCANTILE EXCHANGE FOLLOWED NEW YORK'S LEAD AND CLOSED ITS STOCKINDEX FUTURES AND OPTIONS MARKETS ABOUT 1 1/2 HOURS EARLY BUT THE CHICAGO STOCK EXCHANGE PUT OUT A RELEASE TO SAY IT WAS THE ONLY US STOCK EXCHANGE TO STAY OPEN FOR NORMAL BUSINESS HOURS 9402140034 940214 LETTERS TO THE EDITOR WE ARE NOT SPYING I NOTED THAT AN INTERNATIONALPAGE ARTICLE ON JAN 14 SUGGESTED THAT BRITAIN WAS ENGAGED IN INDUSTRIAL ESPIONAGE AGAINST THE US THIS IS NOT THE CASE AND I AM WRITING TO SET THE RECORD STRAIGHT 9402140033 940214 LETTERS TO THE EDITOR KNOW YOUR COMPUTER IT CAN BE A BIG HELP JACK FALVEY IN HIS JAN 10 MANAGER'S JOURNAL CONFUSES THE MISUSE OF A TOOL WITH PROBLEMS IN THE TOOL THERE IS NO QUESTION THAT ANY SALES MANAGER WORTH HIS SALT NEEDS TO TAKE TIME OUT TO VISIT CLIENTS PROSPECTS AND SALES OFFICES WITH HIS SALES PEOPLE IF YOU NEVER SEE SALESPEOPLE IN ACTION IT'S VERY DIFFICULT TO HELP THEM CLOSE A SALE HOWEVER IT IS ALSO USEFUL TO PROVIDE THOSE SALESPEOPLE WITH TOOLS THAT HELP THINGS LIKE CELLULAR PHONES OFFICE RESOURCES AND YES SOFTWARE THAT HELPS AUTOMATE THE SELLING PROCESS WHILE MR FALVEY MAY KNOW WONDERFUL SALESPEOPLE WHO KEEP MORE THAN 500 PROSPECT NAMES ADDRESSES AND INTERESTS IN THEIR HEADS THE REST OF US NEED SOME ASSISTANCE PROVIDING INFORMATION AT THEIR FINGERTIPS THAT ALLOWS SALESPEOPLE TO REMEMBER NOT ONLY THE LAST SALE BUT ALSO THE PROSPECT'S SPOUSE'S NAME INTEREST IN SPORTS OR SOMETHING ELSE AND PERHAPS THE BEST TIME TO CONTACT THE CLIENT SUCH THINGS CAN GREATLY IMPROVE THE PRODUCTIVITY OF THE SALES FORCE AND WHAT HAPPENS IF THE SALESPERSON IS OUT OF THE OFFICE WITH AUTOMATION ALL THE INFORMATION ABOUT THE CLIENT IS AVAILABLE TO ANYONE WHO NEEDS IT WHEN A SALESPERSON LEAVES AUTOMATION PROVIDES FOR CONTINUITY IN ADDITION WITH AUTOMATION SALES MANAGEMENT CAN SPOT TRENDS BOTH GOOD AND BAD MUCH MORE QUICKLY AND PRECISELY THE FACT THAT THESE COMPUTER SYSTEMS ARE OFTEN MISUSED BOTH BY SALES PEOPLE AND BY SALES MANAGERS IS NOT A DEFECT IN THE SYSTEMS BUT RATHER A CLEAR INDICATION OF LACK OF TRAINING ON AND UNDERSTANDING OF THESE SYSTEMS 9402140032 940214 MERGERS OF THE HEART BY MILTON FISHER AS AN INVESTMENT BANKER I'VE HAD MY SHARE OF MERGERS AND ACQUISITIONS BUT FOR SHEER EXCITEMENT METICULOUS PLANNING HIGH INTEREST AND DIVIDENDS OF SATISFACTION NOTHING BEATS MERGERS OF THE HEART HELPING PEOPLE FIND ONE ANOTHER AND GET MARRIED IS MY PASSION MATCHMAKING CALLS FOR THE SAME TALENT YOU NEED TO MAKE IT BIG ON WALL STREET AN APPETITE FOR RESEARCH IMAGINATION INTUITION HARD WORK AND CHUTZPAH AND THE REWARDS ARE GREAT TOO WHERE DID I PICK UP THIS VIRUS WAY BACK IN COLLEGE AS A PRANK I TOLD MY SHY FRIEND FRED THAT ONE OF THE GIRLS IN ENGLISH 101 WAS DYING TO MEET HIM HE SHOCKED ME BY SAYING GREAT SET UP A DATE NOW I HAD TO COME UP WITH A GIRL THERE WERE 14 IN THE CLASS WHICH ONE WOULD HE LIKE WHICH ONE MIGHT LIKE HIM FINALLY I PICKED ONE WITH THE RIGHT PERSONALITY AND LOOKS AND TOLD HER MY FRIEND HAD A CRUSH ON HER SHE WAS INTRIGUED AND AMUSED AND I INTRODUCED THEM THAT DAY AFTER CLASS IT WAS SPONTANEOUS COMBUSTION TOTALLY SMITTEN WITH EACH OTHER THEY JABBERED AWAY OBLIVIOUS OF ME AND THE REST OF THE WORLD DID I LOSE A FRIEND NO I REALLY GAINED A NEW ONE THEY'RE HAPPILY MARRIED AND STILL JABBERING UP A STORM I WAS HOOKED MARRIAGE BECAME MY THING DRUNK WITH THE AWESOME POWER OF MATCHMAKING I LOOKED AROUND AND STARTED TO MATCH EVERY LIKELY COMBINATION AMAZINGLY SOME OF THEM WORKED WHAT A RUSH OF PLEASURE WHEN IT HAPPENS HERE'S THE SECRET TO MATCHMAKING DEEP DOWN MOST SINGLES ARE LONELY AND READY FOR ROMANCE EVEN IF THEY DON'T ADMIT IT THERE ARE LITERALLY THOUSANDS OF POTENTIAL SPOUSES OUT THERE FOR EVERYONE THE MATCHMAKING JOB IS TO HELP PEOPLE FIND EACH OTHER AND THEN LET THE HORMONES AND GENETIC CODE GO TO WORK IF YOU ARE TEMPTED TO FOLLOW IN MY FOOTSTEPS AS A PERSONAL MERGERS SPECIALIST KEEP THE FOLLOWING TIP IN MIND THE GREAT ADVENTURE OF MARRIAGE OFTEN BEGINS WITH A SINGLE STEP THE BLIND DATE ALAS MANY SINGLES AVOID THE BLIND DATE AT ALL COSTS OH THE AGONY AND EMBARRASSMENT IMAGINE BEING CONDEMNED TO SHARING A DRINK OR LUNCH OR EVEN A WHOLE EVENING WITH THE WRONG PERSON I'M REMINDED OF AN OLD STORY THERE WAS ONCE A VERY RELIGIOUS MAN WHO WAS BARELY ABLE TO SUPPORT HIS SICK WIFE AND SEVEN CHILDREN HE WAS PIOUS AND PRAYED EVERY DAY BUT ONE DAY HE REACHED THE END OF HIS PATIENCE DEAR GOD I'VE BEEN A GOOD MAN ALL THESE YEARS AND DEVOUT TOO I PRAYED LIT CANDLES HELPED MY FELLOW MAN I GAVE TO THE LESS FORTUNATE WHAT WOULD HAVE BEEN SO TERRIBLE IF YOU HAD HELPED ME A LITTLE FOR YEARS I PRAYED FOR A LITTLE GOOD FORTUNE COULDN'T YOU HAVE SEEN TO IT THAT I AT LEAST WON A LOTTERY THERE WAS A GREAT BEAM OF LIGHT FROM THE SKY AND A VOICE FILLED THE ROOM AH MAX MAX COULDN'T YOU AT LEAST BUY A TICKET THE LESSON NEVER TURN DOWN A BLIND DATE OR YOU COULD MISS YOUR LUCKY TICKET IN THE LOTTERY OF ROMANCE HOW DO YOU FULFILL THE DREAM THAT SO MANY SINGLES HAVE OF FINDING THEIR ONE AND ONLY THAT EPHEMERAL STATUS FLOWERS WITH MARRIAGE THE JOINT VENTURE OF MARRIAGE CREATES A BANK OF MEMORIES PLEASURES AND EXPERIENCES THAT NO ONE ELSE SHARES WITH YOU IT MAKES YOUR SPOUSE UNIQUE TRULY A ONE AND ONLY A GRATEFUL GRANDMOTHER AT HER GRANDCHILD'S WEDDING ONCE WHISPERED IN MY EAR THANK YOU FOR THIS KIND OF WORK YOU'LL GO STRAIGHT TO HEAVEN WHEN YOUR TIME COMES NO CORPORATE MERGER COULD EVER MATCH THAT BONUS MR FISHER IS PRESIDENT OF AD GILHART AND CO INVESTMENT BANKERS HIS CURRENT BOOK IS HAVEN'T YOU BEEN SINGLE LONG ENOUGH WILDCAT PUBLISHERS 9402140030 940210 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 9402140029 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE AND TIMOTHY K SMITH GREG GUMBEL GOT OFF TO A SMOOTH START AS AN OLYMPIC TV HOST SOME OF HIS COLLEAGUES WERE LESS NIMBLE ED BRADLEY MOSTLY COVERED THE FEELINGS BEAT RATHER THAN DISPENSE ANY EXPERTISE ON WINTER SPORTS GLEANED AS A PARTTIME RESIDENT OF ASPEN AT ONE POINT HE REMARKED IT'S SO PALPABLE YOU CAN FEEL IT CHARLES KURALT APPEARED SEVERAL TIMES SATURDAY MAKING LESS SENSE ON EACH OCCASION JIM NANTZ AND ANDREA JOYCE WERE HANDED THE THANKLESS TASK SUNDAY MORNING OF HOSTING A SPORTS SHOW WITH HARDLY ANY SPORT SO DETERMINED WAS CBS TO SAVE ITS BEST PICTURES FOR PRIME TIME THAT MR NANTZ AND MS JOYCE COULD OFFER ONLY THE SWEDENSLOVAKIA HOCKEY GAME LOTS OF CANNED FOOTAGE AND A FEW SNIPPETS OF OTHER EVENTS THEY TOLD VIEWERS THAT AMERICAN TOMMY MOE HAD PULLED A MAJOR UPSET BY WINNING THE MEN'S DOWNHILL BUT COULDN'T SHOW IT STRANGELY SOMETIMES THEY WARNED VIEWERS TO LEAVE THE ROOM IF THEY DIDN'T WANT TO KNOW THE RESULTS OTHER TIMES THEY DIDN'T ABOUT 196 MILLION AMERICAN HOMES TUNED IN SATURDAY THE LARGEST AUDIENCE EVER FOR THE START OF A WINTER OLYMPICS CBS ATTRACTED 208 OF TV HOMES A GAIN OF 63 POINTS OVER THE ALBERTVILLE OPENING ACCORDING TO AC NIELSEN CO CBS BLEW AWAY ITS RIVALS IN MAJORCITY AUDIENCES NBC HAD 79 FOLLOWED BY ABC AND FOX THE OPENING CEREMONIES AT ALBERTVILLE TWO YEARS AGO WERE SO ELABORATE SOME CALLED THEM WEIRD THAT IT SEEMED LILLEHAMMER'S WOULD PALE BY COMPARISON BUT THEY DIDN'T FROM STEIN GRUBEN'S SUCCESSFUL SKI JUMP CARRYING THE OLYMPIC TORCH TO NORWAY'S REINDEER CHILDREN AND SINGERS THE OPENING WAS A PLEASANT SURPRISE THE FASHION POLICE WOULD HAVE MANY OF THE NATIONAL TEAMS' CLOTHING DESIGNERS AND SENT SOME BELARUS AND AUSTRALIA FOR EXAMPLE DIRECTLY TO JAIL THE CROATIANS JAPANESE AND BRITISH LOOKED CLASSY THE DECISION TO ALLOW TONYA HARDING TO SKATE GAVE CBS SOME NEWS TO MIX INTO THE FIRST MINUTES OF ITS OPENING TELECAST FOR THE REST OF THE EVENING TONYANANCY MENTIONS WERE HELD TO A MINIMUM BUT ON SUNDAY MORNING CBS CONVENED THREE PRINT JOURNALISTS TO CHEW OVER THE DECISION THEY WERE AS ILLUMINATING AS JOURNALISTS USUALLY ARE ON SUNDAY TALK SHOWS ANDY MILL A WORLD CUP SKIRACING VETERAN AND EXPERT COMMENTATOR FOR CBS ON THE ALPINE EVENTS EXPLAINED THE PROWESS OF UNUSUALLY LARGE AUSTRIAN DOWNHILLER PATRICK ORTLIEB THIS WAY IT HAS TO DO WITH INERTIA AS EVERYBODY KNOWS IF YOU DROP TWO ROCKS OFF THE TOP OF A BUILDING A BIG ONE AND A LITTLE ONE THE BIG ONE WILL GET TO THE BOTTOM FIRST ACTUALLY GALILEO'S FAMOUS EXPERIMENT AT THE LEANING TOWER OF PISA PROVED THAT THEY WILL FALL AT THE SAME RATE