MEMOREX TELEX NV FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION FOR THE SECOND TIME IN 25 MONTHS PROPOSING A REORGANIZATION PLAN THAT GIVES SENIOR BANK CREDITORS AND BONDHOLDERS 100 OF THE COMPANY'S EQUITY THE PREPACKAGED REORGANIZATION PLAN WHICH ALREADY HAS THE APPROVAL OF 95 OF HOLDERS OF EACH CLASS OF THE COMPANY'S SECURITIES COULD ALLOW MEMOREX TELEX TO QUICKLY EMERGE FROM BANKRUPTCY COURT MEMOREX TELEX WHICH MAKES COMPUTER DATASTORAGE EQUIPMENT SAID THE US BANKRUPTCY COURT IN WILMINGTON DEL SCHEDULED A MARCH 14 CONFIRMATION HEARING FOR THE PLAN AND THAT CLEARANCE COULD COME SHORTLY AFTERWARD THE DUTCH COMPANY HAS EXECUTIVE OFFICES IN IRVING TEXAS A SPOKESMAN SAID BOTH THE DUTCH PARENT AND ITS US UNIT FILED IN BANKRUPTCY COURT IN PREPACKAGED REORGANIZATIONS COMPANIES SEEK TO LINE UP THE SUPPORT OF CREDITORS BEFORE FILING THEIR PLANS IN ORDER TO EXPEDITE THE PROCEEDINGS PREPACKAGED PLANS GENERALLY TAKE A FEW MONTHS TO COMPLETE THE CONVENTIONAL REORGANIZATION PROCESS CAN TAKE CONSIDERABLY LONGER SOMETIMES YEARS THE LATEST PLAN FOLLOWS THE FILING OF A SEPARATE PREPACKAGED REORGANIZATION PLAN IN JANUARY 1992 THAT PLAN WAS APPROVED IN FEBRUARY 1992 A COMPANY SPOKESMAN SAID THAT WITH THE RECESSION IN EUROPE WHERE 40 OF THE COMPANY'S REVENUE IS GENERATED COUPLED WITH A SLOW RECOVERY IN THE US WHERE 50 OF REVENUE IS GENERATED THE COMPANY CONTINUED TO REPORT LOSSES AND DETERMINED THAT IT NEEDED FURTHER RESTRUCTURING UNDER THE PLAN ABOUT 850 MILLION OF THE COMPANY'S 950 MILLION OF SENIOR BANK AND PUBLIC DEBT AND ACCRUED INTEREST WILL BE CONVERTED TO A 100 EQUITY STAKE THE REMAINING 100 MILLION IN DEBT WILL CONTINUE AS A FIVEYEAR TERM LOAN FROM A SYNDICATE LED BY MORGAN GUARANTY TRUST CO OF NEW YORK MEMOREX TELEX SAID CURRENT SHAREHOLDERS WOULD LOSE MOST OF THEIR EQUITY TO SENIOR DEBTHOLDERS WHO WOULD CONTROL VIRTUALLY ALL OF MEMOREX TELEX BUT THE SHAREHOLDERS WOULD GET WARRANTS TO BUY STOCK IN THE NEW COMPANY THAT IF EXERCISED WOULD GIVE THEM A STAKE OF ABOUT 4 9402140027 940214 WHO'S NEWS ST PAUL COS ST PAUL COS ST PAUL MINN C RICHARD PETERSON 54 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF NEW YORKBASED MINET INC THE NORTH AMERICAN ARM OF LONDON'S MINET GROUP AN INSURANCE BROKER THAT'S PART OF THIS DIVERSIFIED FINANCIAL COMPANY HE SUCCEEDS ALAN B MIDDLETON WHO REMAINS WITH THE COMPANY MR PETERSON MOST RECENTLY WAS AN EXECUTIVE VICE PRESIDENT WITH SEDGWICK JAMES INC 9402140026 940214 SAUDIS WON'T CUT OIL PRODUCTION LEVELS BUT ANALYSTS PREDICT PRICE RISE ANYWAY BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL SAUDI ARABIA WON'T COMMIT TO A SPRING CUT IN ITS OIL PRODUCTION DESPITE WEEKEND APPEALS FROM OTHERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BUT IT MAY NOT NEED TO IF WORLD OIL DEMAND RISES AS EXPECTED MORE INDUSTRY OFFICIALS AND ANALYSTS NOW LOOK FOR SOME SORT OF RECOVERY IN PETROLEUM PRICES LATER THIS YEAR AS REVIVING WESTERN ECONOMIES LEAD TO GREATER USE OF PETROLEUM ESTIMATES OF PRICE INCREASES EXPECTED IN THE SECOND HALF RANGE BETWEEN 1 AND 4 A BARREL SUCH A PROMISE PROVIDES LITTLE COMFORT FOR JITTERY OPEC MINISTERS HOWEVER WITH OIL PRICES STILL HOVERING NEAR FIVEYEAR LOWS OF 13 TO 15 A BARREL THAT IS WHY DON ETIEBET NIGERIA'S OIL MINISTER WAS IN SAUDI ARABIA SATURDAY TO PLEAD WITH HIS COUNTERPART HISHAM NAZER FOR A 5 TO 10 SECONDQUARTER CUT IN THE KINGDOM'S OIL OUTPUT OF EIGHT MILLION BARRELS A DAY THE NIGERIAN MINISTER APPARENTLY WENT HOME YESTERDAY EMPTYHANDED THE ONLY OFFICIAL SAUDI WORD ON THE OUTCOME OF THE WEEKEND SESSION CAME FROM THE GOVERNMENT PRESS AGENCY WHICH REPORTED THE MINISTERS DISCUSSED THE OIL MARKET SITUATION AND AGREED TO CONTINUE CONSULTATIONS UNTIL OPEC'S MARCH 25 MEETING MUCH OF THE STEEP FALL IN PETROLEUM PRICES HAS COME SINCE NOVEMBER WHEN OPEC REFUSED TO REDUCE PRODUCTION FOR THIS YEAR'S FIRST QUARTER IF OPEC FAILS TO REDUCE OUTPUT FOR THE TRADITIONALLY SLUGGISH SECOND QUARTER THE PRICE MAY FALL FURTHER BEFORE ANY RECOVERY BEGINS MANY ANALYSTS SAY IT COULD NOSEDIVE AGAIN AROUND THE OPEC MEETING IF THE NEWS IS BAD SAID VICTORIA HALLSTROM OF SALOMON BROTHERS STILL SALOMON ANALYSTS ARE HOLDING TO AN EARLIER FORECAST THAT WEST TEXAS INTERMEDIATE OR WTI THE US BENCHMARK CRUDE WILL AVERAGE 1650 A BARREL THIS YEAR MR ETIEBET'S VISIT TO SAUDI ARABIA THE WORLD'S BIGGEST OIL PRODUCER CAME AFTER HE AND ABDULLAH ALATTIYAH OPEC'S PRESIDENT AND QATAR'S OIL MINISTER JOINTLY ANNOUNCED THE URGENT NEED OF A MAJOR PRODUCTION CUT FOR THE SECOND QUARTER MR ALATTIYAH ALSO IS TOURING OTHER OPEC NATIONS TO PREPARE FOR THE MARCH 25 MEETING NIGERIA AND QATAR ARE BELIEVED TO BE AMONG THE MORE FREQUENT CHEATERS ON OPEC PRODUCTION QUOTAS HOWEVER AND EXCEPT FOR SAUDI ARABIA MOST OIL NATIONS IN OR OUT OF OPEC ARE NEAR CAPACITY FOR THE SAUDIS ACCORDING TO A PERSIAN GULF SOURCE CLOSE TO SAUDI ARABIA'S POLICY MAKERS THE BOTTOM LINE IS THAT THE KINGDOM DOESN'T WANT TO CUT OUTPUT NOW AND DOESN'T WANT TO DISCUSS THE ISSUE A LOT CAN HAPPEN IN THE OIL MARKET IN A MONTH HE SAID OPEC CAN DO LITTLE WITHOUT THE FULL SUPPORT OF THE SAUDIS LEO DROLLAS CHIEF ECONOMIST AT LONDON'S CENTER FOR GLOBAL ENERGY STUDIES ESTIMATED THAT A 5 CUT IN OPEC'S PRODUCTION OF 247 MILLION BARRELS A DAY SOME 12 MILLION BARRELS A DAY WITH SAUDI ARABIA ACCOUNTING FOR ONETHIRD COULD LIFT PRICES AN AVERAGE OF 1 A BARREL IN THE SECOND QUARTER BUT OIL DEMAND MR DROLLAS SAID IS INCREASING AND THERE WOULD BE PRICE RISES IN THE THIRD AND FOURTH QUARTERS EVEN IF OPEC WERE AT CURRENT OUTPUT LEVELS THEN THAT'S IN LINE WITH SOME OTHER FORECASTS CAMBRIDGE ENERGY RESEARCH ASSOCIATES EXPECTS FOURTHQUARTER PRICES OF 17 A BARREL FOR WTI AND AN AVERAGE OF 15 FOR THE SEVEN CRUDES USED BY OPEC AS A REFERENCE THAT WOULD BE WELL BELOW YEARAGO PRICES WHEN WTI WAS NEAR 21 A BARREL BUT SOME 2 A BARREL HIGHER THAN RECENT LEVELS ON THE NEW YORK MERCANTILE EXCHANGE FRIDAY WHERE A CRUDE SIMILAR TO WTI IS TRADED THE FUTURES PRICE FOR MARCH DELIVERY SETTLED AT 1472 A BARREL IN OPEC SO FAR THIS YEAR THE REFERENCE PRICE HAS AVERAGED ONLY 1389 A BARREL DOWN FROM 1633 FOR 1993 AND 1844 FOR 1992 9402140025 940214 INTERNATIONAL CHAIRMAN OF CANAL QUITS HAVAS BOARD CITING EQUITY MOVE SPECIAL TO THE WALL STREET JOURNAL PARIS ANDRE ROUSSELET CHAIRMAN OF FRENCH PAYTV COMPANY CANAL PLUS SA RESIGNED FROM THE BOARD OF HAVAS SA CITING DISPLEASURE WITH ITS DECISION TO GROUP ITS 24 STAKE IN CANAL PLUS WITH THE 20 HELD BY CIE GENERALE DES EAUX A CABLE OPERATOR CANAL PLUS SAID MR ROUSSELET IS IN TOTAL DISAGREEMENT WITH THE HAVAS BOARD'S DECISIONS WITH RESPECT TO CANAL PLUS ON THURSDAY MR ROUSSELET WALKED OUT OF A HAVAS BOARD MEETING IN PROTEST THE COMBINING OF STAKES IS PART OF A HAVAS STRATEGY TO FORGE A STRONG FRENCH MULTIMEDIA ALLIANCE HAVAS CHAIRMAN PIERRE DAUZIER SEEKS TO COMBINE HIS COMPANY'S EXPERTISE IN ADVERTISING TV AND PUBLISHING WITH THE ELEMENTS OF INTERACTIVE TECHNOLOGY THE NEW PARTNERS CONTROL PROGRAMMING FROM CANAL PLUS A BIG PLAYER IN FILM AND TV PRODUCTION WOULD PLAY A KEY ROLE HAVAS AND GENERALE DES EAUX ARE COMBINING THEIR RESPECTIVE CANAL PLUS STAKES IN A JOINT HOLDING SOCIETE GENERALE THE FRENCH RETAIL BANK THAT OWNS 51 OF CANAL PLUS HAS AGREED TO ACT IN CONCERT WITH HAVAS AND GENERALE DES EAUX PEOPLE CLOSE TO THE COMPANIES INVOLVED SUGGESTED THAT MR ROUSSELET'S RESIGNATION COULD LEAD TO HIS RESIGNATION SOON FROM THE CHAIRMAN'S POST AT CANAL PLUS MEANWHILE STATEOWNED FRANCE TELECOM AGREED TO HAND OVER ITS HALF OF A JOINT TELEPHONE DIRECTORYPUBLISHING VENTURE OFFICE D'ANNONCES SA IN EXCHANGE FOR AN UNSPECIFIED STAKE IN HAVAS ANALYSTS ESTIMATE FRANCE TELECOM WILL GET ABOUT 5 ON FRIDAY HAVAS ESTIMATED THAT 1993 NET INCOME FELL 14 TO 705 MILLION FRANCS 1185 MILLION FROM A YEAREARLIER 823 MILLION FRANCS 9402140024 940214 UK INVESTORS EYEING VENTURE CAPITAL SHUN FIRMS REPORT SAYS LONDON BRITISH INSTITUTIONAL INVESTORS WITH AN INTEREST IN VENTURE CAPITAL ARE INCREASINGLY MANAGING SUCH INVESTMENTS THEMSELVES BECAUSE OF DISSATISFACTION WITH LOW YIELDS PRODUCED BY INTERMEDIARY VENTURE CAPITAL COMPANIES THAT'S THE CONCLUSION OF A REPORT ON THE BRITISH INDUSTRY PUBLISHED BY INITIATIVE EUROPE LTD A SPECIALIST CONSULTANCY AFTER A DECADE OF RAPID GROWTH THE UK VENTURE CAPITAL INDUSTRY IS ENTERING ADOLESCENCE RATHER THAN MATURITY THE REPORT SAYS OUTSIDE THE US BRITAIN'S VENTURE CAPITAL INDUSTRY IS ONE OF THE WORLD'S MOST DEVELOPED SO MOVES HERE CAN BE USEFUL GUIDES TO WHAT MAY HAPPEN IN CONTINENTAL EUROPE THOUGH INSTITUTIONAL INVESTORS CAN PROVIDE A POTENTIALLY VAST POOL OF CAPITAL FOR THE VENTURE CAPITAL INDUSTRY THE REPORT STATES MANY HAVE BEEN DISCOURAGED BY RETURNS SO FAR AS A RESULT RATHER THAN INVESTING THROUGH OUTSIDE FIRMS INSTITUTIONS SUCH AS PRUDENTIAL CORP AND POSTEL INVESTMENT MANAGEMENT THE POST OFFICE AND TELEPHONE WORKERS' PENSION FUND HAVE RECENTLY INVESTED SUBSTANTIAL SUMS IN DIRECTLY CONTROLLED VENTURE CAPITAL OPERATIONS THIS TREND FOR INSTITUTIONS TO MOVE FROM FUND TO DIRECT INVESTMENT IS LIKELY TO CONTINUE AND INTENSIFY INITIATIVE EUROPE PREDICTS INVESTMENTS IN BRITISH VENTURE CAPITAL FUNDS DURING THE 1980S WERE BASED ON THE PROMISE OF RETURNS IN EXCESS OF 30 BUT THESE PROMISES WERE BASED ON ERRONEOUS DATA ABOUT US PERFORMANCE AND ON A HANDFUL OF EARLY EXPERIENCES OF UK BUYOUTS THAT WEREN'T MATCHED IN LATER YEARS INITIATIVE EUROPE SAYS IN REALITY IT NOTES MOST MAJOR UK INSTITUTIONAL INVESTORS HAVE SEEN THEIR VENTURE CAPITAL INVESTMENTS YIELD RETURNS OF BETWEEN ZERO AND 10 OVER THE PAST DECADE 9402140023 940214 RETAILING PARENTS SNAP UP TOYS THAT SPUR KIDS TO BUILD BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S TALK ABOUT INFRASTRUCTURE RESONATES WITH PARENTS WHO ARE SPENDING A RECORD AMOUNT OF MONEY SO THEIR CHILDREN CAN BUILD BRIDGES HIGHWAYS AND RAILROADS WITH LEGO BLOCKS ERECTOR SETS LINCOLN LOGS AND TINKER TOYS SALES OF CONSTRUCTION TOYS GREW AN ESTIMATED 15 LAST YEAR OUTPACING THE TOY INDUSTRY OVERALL WHICH GREW AT LESS THAN 5 THE SALES FIGURES WILL BE ANNOUNCED TODAY IN NEW YORK AT THE OPENING OF THE AMERICAN INTERNATIONAL TOY FAIR MUCH OF THE BUZZ AT THE SHOW WILL BE ABOUT NEW OFFERINGS IN THE ACTIONFIGURE CATEGORY WHICH HAS HAD BIG HITS RECENTLY LIKE THE MIGHTY MORPHIN POWER RANGERS BUT WHILE THE POWER RANGERS ARE STILL VERY POPULAR CONSTRUCTION TOYS HAVE SHOWN STRONG STEADY GROWTH AS SCHOOLS AND PARENTS HAVE BOUGHT THEM FOR THEIR EDUCATIONAL VALUE RECOGNITION FROM RESEARCHERS OF THE IMPORTANCE OF SUCH MANIPULATIVE TOYS IN EARLY DEVELOPMENT IS FUELING THE GROWTH AS ARE SAVVY PROMOTIONS TOUCHING AND ORGANIZING OBJECTS IS WIDELY THOUGHT TO HELP IN UNDERSTANDING THE ABSTRACTIONS OF MATHEMATICS AND SCIENCE ESPECIALLY IN THE EARLY YEARS LINDA KAHRS PRESIDENT OF TOUT ABOUT TOYS INC IN FOSTER CITY CALIF WHICH SELLS TEACHING AIDS TO SCHOOLS SAYS MANIPULATIVES HAVE BECOME THE MAINSTAY OF MY BUSINESS HER COMPANY HAS GROWN FROM ONE PRODUCT SOLD FROM HER CAR IN 1985 TO AN OFFICE/WAREHOUSE DISTRIBUTING SEVERAL HUNDRED TOYS TODAY THE CLASSROOM HAS BECOME A SUBTLE ADVERTISEMENT FOR THE PRODUCT SAYS MS KAHRS I HAVE PARENTS ASKING ME ALL THE TIME WHERE THEY CAN GET PRODUCT YOUR LOCAL TOY STORE' I OFTEN SAY LEGO WHICH HAS A DANISH PARENT WILL UNVEIL AT TOY FAIR PLANS TO TAKE AN EDUCATIONAL EXHIBIT OF ITS BLOCKS TO MUSEUMS IN THE US AND CANADA OVER THE NEXT SEVERAL YEARS NEARLY 100 MUSEUMS ARE INTERESTED WE'RE BOOKED THROUGH 1997 SAYS JOHN DION THE EXHIBIT'S MANAGER CONSTRUCTION TOYS ACCOUNTED FOR 350 MILLION IN 1993 SALES ABOUT 200 MILLION LESS THAN ACTION FIGURES BUT ANALYSTS EXPECT BIG GROWTH IN PLAY BUILDING LEGO THE CATEGORY'S LEADER SOLD 250 MILLION OF ITS PLASTIC BLOCKS IN 1993 AND EXPECTS DOUBLEDIGIT SALES GROWTH THIS YEAR A FEAT IT HAS ACHIEVED FOR THE LAST SIX YEARS MECCANO INC A UNIT OF FRENCHBASED MECCANO SA IS PREDICTING SALES OF TWO MILLION ERECTOR SETS THIS YEAR DOUBLE LAST YEAR'S VOLUME AND CONNECTOR SET TOY CO A NEWCOMER BASED IN HATFIELD PA THAT MAKES K'NEX HIT 25 MILLION IN SALES IN 1993 ITS FIRST YEAR ON THE MARKET AND ALSO EXPECTS SALES TO DOUBLE THIS YEAR BIG US TOY MAKERS HAVE TENDED TO GIVE SHORT SHRIFT TO THE CATEGORY DESPITE SIGNS OF ROOM FOR GROWTH JOEL GLICKMAN MANAGING PARTNER OF CONNECTOR SET SHOPPED K'NEX AROUND THREE YEARS AGO I HAD THE HONOR OF BEING TURNED DOWN BY ALL OF THE MAJORS IN THE INDUSTRY HE SAYS STEPHANE TREPPOZ MECCANO'S US CHIEF FIGURES THAT CONSTRUCTION TOYS REPRESENT ONLY 3 OF TOY SALES HERE COMPARED WITH 6 TO 8 IN OTHER DEVELOPED NATIONS THE LEGO MUSEUM EXHIBIT IS DESIGNED TO LET CHILDREN TEST SEISMIC AND ROBOTIC PRINCIPLES VISITORS CAN BUILD HOMES AND SKYSCRAPERS ON A SHAKING TABLE THAT SIMULATES EARTHQUAKES OF VARYING INTENSITIES KIDS CAN BUILD TO WITHSTAND A MAJOR CALIFORNIA RUMBLE SAYS MR DION OR THEY CAN CONSTRUCT TO MAKE THE BUILDING CRASH WITH THE LOUDEST NOISE CONSTRUCTIONTOY COMPANIES ALSO HAVE MORE TRADITIONAL MARKETING PLANS MECCANO WILL DOUBLE ITS TV ADVERTISING BUDGET THIS YEAR AND LEGO WILL TAKE A PAGE FROM US TOY MAKERS SPINNING MORE FANTASY AROUND ITS NEW PRODUCTS WHICH INCLUDE NEW BLOCKS AND SHAPES TO BUILD FLYING SAUCERS ROBOTS AND A TROPICALISLAND LEGOLAND MECCANO'S MR TREPPOZ SAYS THAT KIDS DON'T HAVE TO BADGER PARENTS TO GET THEM A CONSTRUCTION TOY AS THEY DO WITH VIDEO GAMES THAT MAY BE SO BUT DIVERTING THE ATTENTION OF CHILDREN AWAY FROM MORE TRADITIONAL TOYS WON'T BE EASY ALL EYES AT TOY FAIR WILL BE ON THE MIGHTY MORPHIN POWER RANGERS A LINE OF FIGURINES MADE BY BANDAI AMERICA INC THAT CAN BE TRANSFORMED FROM ROBOTS TO OTHER FORMS AND OBJECTS POWER RANGERS WERE IN SHORT SUPPLY LAST YEAR HOPING TO CASH IN ON THE CRAZE TOY MAKERS LARGE AND SMALL HAVE LINED UP AN ARRAY OF IMITATORS BANDAI HAS BEEN TOLD BY RETAILERS TO EXPECT POWER RANGER SALES OF UP TO 350 MILLION IN 1994 SAYS PETER DANG A BANDAI AMERICA VICE PRESIDENT LAST YEAR DINOSAURS WERE ALSO HOT IN PART DUE TO THE FILM JURASSIC PARK AT THE HONG KONG TOY FAIR LAST MONTH I SAW A LOT OF DINOSAURS CHANGE IN AN INSTANT TO CONVERTIBLE ROBOTS REPORTS MR DANG HASBRO INC THE BIGGEST TOY MAKER AND LEADING ACTION FIGURE MAKER WILL UNVEIL A SLEW OF NEW ENTRIES INCLUDING A MORTAL KOMBAT LINE BASED ON THE GRAPHICALLY VIOLENT VIDEO GAME BY ACCLAIM ENTERTAINMENT INC MATTEL INC WILL COME OUT WITH A FLINTSTONES ACTION FIGURE LINE TIED TO THE TV CARTOON IN ALL MORE THAN 40 ACTION FIGURES WILL BE SHOWN AT THE FAIR EXCEEDING LAST YEAR'S RECORD OF 36 ESTIMATES JIM SILVER PUBLISHER OF TOY BOOK A TRADE PUBLICATION THE ONLY THING I HAVEN'T SEEN YET IS A TONYA HARDING ACTION FIGURE MR SILVER SAYS FOR GIRLS MATTEL HAS MORE VERSIONS OF BARBIE WHO IS NOW IN HER 35TH YEAR YIELDING A BIT TO CRITICISM OF THE DOLL'S APPEARANCE MATTEL IS PUTTING FLATTER FEET ON SOME BARBIES THOUGH HER BUST REMAINS UNCHANGED MEANWHILE TYCO TOYS INC WILL BRING OUT GROWING UP KATHY A BABY DOLL THAT GROWS BREASTS AND TURNS INTO A SHAPELY TEENAGER WHEN HER ARMS ARE LIFTED FOR PRESCHOOLERS MATTEL HAS A LINE OF TOYS TIED TO WALT DISNEY'S ANIMATED FEATURE THE LION KING TO PREMIERE IN JUNE OTHER TOY MAKERS ARE ALSO EXPECTED TO INTRODUCE JUNGLEANIMAL TOYS 9402140022 940214 BRAZIL'S PRODUCTION ROSE IN '93 RIO DE JANEIRO BRAZIL'S INDUSTRIAL PRODUCTION GREW 96 IN 1993 OVER THE PREVIOUS YEAR DECEMBER PRODUCTION ADVANCED 101 ABOVE THE LEVEL IN DECEMBER 1992 AND WAS 44 HIGHER THAN IN NOVEMBER ACCORDING TO THE NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS LAST YEAR'S INDUSTRIAL PRODUCTION WAS THE BEST IN SEVEN YEARS THE INSTITUTE SAID DECEMBER WAS THE THIRD CONSECUTIVE MONTH IN WHICH PRODUCTION GREW OVER THE PREVIOUS MONTH ACCORDING TO THE DATA THE MOST DRAMATIC GROWTH WAS IN CONSUMER DURABLE GOODS WHICH INCREASED 41 IN 1993 OVER THE PREVIOUS YEAR IN THE SAME PERIOD CAPITAL GOODS GREW 149 AND NONDURABLE CONSUMER GOODS ROSE 39 9402140021 940214 PEOPLE PATTERNS BY ALAN L OTTEN AGING POPULATIONS ADD TO THE TROUBLES OF EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS THE US CENSUS BUREAU REPORTS THAT ONE IN 10 PEOPLE IN THESE 22 COUNTRIES CZECHOSLOVAKIA AND YUGOSLAVIA STILL COUNTING AS ONE EACH WAS 65 OR OVER IN 1990 AND THAT BY 2025 THE PROPORTION WOULD BE ONE IN FIVE AGING POPULATIONS CHARACTERIZE ALL INDUSTRIALIZED NATIONS IN THE US FOR EXAMPLE ONE IN EIGHT IS ELDERLY BUT CENSUS SUGGESTS THAT THE AGING TREND IS MORE OF A PROBLEM FOR THE FORMER COMMUNIST NATIONS ONE REASON IS THAT MOST HAVE VERY LIBERAL PENSION POLICIES WHICH WILL STRAIN SCARCE ECONOMIC RESOURCES EFFORTS TO REDUCE PENSIONS OR INABILITY TO MEET PENSION OBLIGATIONS COULD ADD TO POLITICAL INSTABILITY ANOTHER FACTOR IS THAT WOMEN GREATLY OUTNUMBER MEN AMONG THE ELDERLY IN THESE COUNTRIES AND AGED WOMEN USUALLY REQUIRE MORE MEDICAL AND OTHER CARE ELDERLY WOMEN OUTNUMBER ELDERLY MEN PRACTICALLY ALL OVER THE WORLD BUT THE DISPROPORTION IS PARTICULARLY GREAT IN THE FORMER COMMUNIST COUNTRIES DUE TO MALE DEATHS IN WORLD WAR II IN RUSSIA FOR EXAMPLE ELDERLY WOMEN ARE ALMOST THREE TIMES AS NUMEROUS AS ELDERLY MEN THE CHIEF CAUSE OF THE INCREASING PROPORTION OF OLD PEOPLE IN EASTERN EUROPE AND MOST FORMER SOVIET COUNTRIES IS LONGTIME LOW FERTILITY RATES SAYS CENSUS SPECIALIST VICTORIA VELKOFF WITH FERTILITY OFTEN BELOW OR JUST AT REPLACEMENT LEVELS EXISTING GENERATIONS BULK LARGER AND LARGER IN THE TOTAL POPULATION COUNTRIES WITH THE HIGHEST RATIO OF OLD FOLKS ARE HUNGARY 134 BULGARIA 13 THE CZECH REPUBLIC 125 UKRAINE 121 AND LATVIA 12 RUSSIA WITH ITS HUGE TOTAL POPULATION HAD BY FAR THE MOST ELDERLY MEN AND WOMEN ALMOST 15 MILLION BUT THEY REPRESENTED JUST 10 OF ITS TOTAL DETROIT WHITES GROW SLIGHTLY MORE COMFORTABLE ABOUT BLACK NEIGHBORS BLACKS BACK AWAY FROM WHITE NEIGHBORHOODS DEMOGRAPHER REYNOLDS FARLEY AND COLLEAGUES AT THE UNIVERSITY OF MICHIGAN'S POPULATION STUDIES CENTER COMPARED RESIDENTIAL PREFERENCES OF BLACKS AND WHITES AS REVEALED IN TWO LARGE SURVEYS ONE IN 1976 AND THE OTHER IN 1992 GIVEN THE LONG HISTORY OF RACIAL ANTAGONISMS IN THE AREA THEY EXPECTED HEAVY WHITE OPPOSITION TO BLACK INCURSIONS INTO WHITE NEIGHBORHOODS AND PERHAPS HEIGHTENED BLACK APPREHENSION ABOUT MOVING THERE THE SURVEYS INVOLVED LARGE RANDOM SAMPLES IN DETROIT AND ITS SUBURBS WHITE RESPONDENTS WERE ASKED THEIR REACTION TO HAVING DIFFERENT COMBINATIONS OF BLACK AND WHITE FAMILIES LIVING AROUND THEM IN 1992 84 SAID THEY WOULD BE COMFORTABLE WITH ONE BLACK FAMILY OUT OF 15 UP FROM 76 IN 1976 AND 70 SAID THEY'D FEEL OK ABOUT THREE BLACK FAMILIES OUT OF 15 COMPARED WITH 58 EARLIER THOUGH ONLY 35 SAID THEY'D FEEL COMFORTABLE LIVING WITH AN EIGHTTOSEVEN BLACK MAJORITY THIS WAS UP FROM 28 IN 1976 MOREOVER THE PERCENTAGES SAYING THEY WOULD TRY TO MOVE OUT IF BLACK FAMILIES MOVED IN DROPPED SIGNIFICANTLY IN EACH CASE PRACTICALLY ALL THOSE WHO WOULD TRY TO MOVE OUT GAVE CONCERN OVER A DROP IN PROPERTY VALUES AS THEIR MAIN REASON WITH FEAR OF INCREASED DRUGS CRIME AND VIOLENCE AS THEIR NEXT IN BOTH SURVEYS BLACKS WERE ASKED ABOUT THEIR DESIRE TO MOVE INTO DIFFERENT TYPES OF NEIGHBORHOODS FROM ALLBLACK AREAS TO ONES WHERE THEY WOULD BE THE ONLY BLACK FAMILY CHANGES BETWEEN 1976 AND 1992 WERE SMALL BUT IN EVERY CASE INDICATED A SLIGHT SHIFT AWAY FROM RESIDENTIAL INTEGRATION THOSE PREFERRING ALLBLACK OR PREDOMINANTLY BLACK AREAS GAVE AS REASONS SIMPLY WANTING TO LIVE WITH OUR OWN KIND OR FEELING SUCH NEIGHBORHOODS WOULD BE MORE WELCOMING DR FARLEY THINKS RESULTS IN OTHER METROPOLITAN AREAS WITH A HISTORY OF RACIAL TENSIONS PROBABLY WOULD BE SIMILAR TO THE DETROIT RESULTS BUT THAT BOTH WHITES AND BLACKS WOULD BE MORE INTEGRATIONREADY IN AREAS WHERE RELATIONS HAVE HISTORICALLY BEEN BETTER THAN IN AND AROUND DETROIT FULLTIME LEGISLATORS BECOME MORE COMMON AT THE STATEHOUSE LEVEL AN ANALYSIS BY THE NATIONAL CONFERENCE OF STATE LEGISLATURES SHOWS THAT THE PERCENTAGE OF INCUMBENTS LISTING THEMSELVES AS FULLTIME LAWMAKERS HAS RISEN TO ALMOST 15 FROM 27 IN 1976 AND 115 IN 1986 LAWYERS TRADITIONALLY THE LARGEST GROUP STILL TOP THE OCCUPATIONAL LIST AT 165 OF THE 1993 TOTAL BUT THAT'S A CONSIDERABLE FALLOFF FROM MORE THAN 22 IN 1976 THE CONFERENCE SAYS STRINGENT DISCLOSURE LAWS AND THE INCREASING LENGTH OF LEGISLATIVE SESSIONS PROBABLY EXPLAIN THE DROP BUSINESS OWNERS ACCOUNTED FOR 10 OF THE TOTAL IN 1993 DOWN FROM 158 IN 1976 AND 138 IN 1986 BUT THEY REMAINED THE THIRD LARGEST GROUP HOWEVER THE PROPORTION OF LEGISLATORS IDENTIFYING THEMSELVES AS BUSINESS EXECUTIVES OR MIDDLE MANAGEMENT INCHED UP DURING THE PERIOD THERE ARE FEWER SELFPROCLAIMED FARMERS THAN IN 1976 THOUGH THEY STILL ARE THE FOURTH LARGEST GROUP MAKING UP JUST UNDER 8 OF ALL LEGISLATORS THE NUMBER OF REALESTATE AGENTS AND INSURANCE MEN AND WOMEN ALSO DECLINED CONSIDERABLY CLASSIFICATIONS SHOWING SMALL GAINS INCLUDED DOCTORS RETIREES AND HOMEMAKERS IN GENERAL HOWEVER THERE SEEMS REMARKABLE STABILITY IN THE OCCUPATIONS REPRESENTED IN STATE LEGISLATURES THE CONFERENCE CONCLUDED DON'T GO WALKING ON SATURDAY NIGHT METROPOLITAN LIFE INSURANCE FINDS THAT ONE OUT OF FIVE PEDESTRIAN DEATHS OCCURS ON SATURDAYS WITH ABOUT TWOTHIRDS TAKING PLACE BETWEEN 6 PM SATURDAY AND 3 AM SUNDAY MANY OLDER ADULTS TEND TO UNDERESTIMATE THEIR MENTAL ABILITIES BELIEVING THESE SKILLS HAVE DECLINED MORE THAN THEY ACTUALLY HAVE ACCORDING TO RESEARCH BY PENN STATE PSYCHOLOGISTS 9402140020 940214 LETTERS TO THE EDITOR TRADESPEOPLE UNDERGO RIGOROUS TRAINING TIM FERGUSON'S JAN 11 BUSINESS WORLD THE CLOGGED PIPELINE OF CRAFT TRAINING DOES A GOOD JOB OF PERPETUATING THE MYTH THAT THE BUILDING TRADES ARE MINIMALLY SKILLED LABORERS IT DOES NOT LEAVE THE READER WITH THE IMPRESSION THAT THESE MEN AND WOMEN UNDERGO RIGOROUS EDUCATIONAL PROGRAMS SUPERVISION AND TESTING AS DO THOSE IN OTHER PROFESSIONS NOR DOES IT ILLUSTRATE THE TECHNICAL COMPETENCIES PLANNING DECISIONMAKING AND RISK ASSOCIATED WITH MOST TRADES PERSPECTIVE MIGHT BE GAINED BY CHANGING THE PROFESSION IN MR FERGUSON'S ARTICLE TO CPA ATTORNEY PHYSICIAN NURSE OR COLLEGE PROFESSOR OR PERHAPS MR FERGUSON WOULD CONSIDER THE ADVANTAGE TO THE ECONOMY OF LOWERPRICED NEWSPAPERS AND MAGAZINES IF ONLY EDITORIAL WRITERS WERE PAID 25 TO 30 LESS THAN THEY ARE CURRENTLY MAKING SERIOUSLY MANY PEOPLE SLEEP MORE SOUNDLY AND BUSINESS PEOPLE ARE FREED TO FOCUS ON PROFITMAKING VENTURES BECAUSE TRADESPEOPLE PROVIDE QUALITY WORK THESE PEOPLE ARE THE BACKBONE OF SOCIETY AND THEY ARE ENTITLED TO AN ADEQUATE COMPENSATION THE ARROGANCE OF MR FERGUSON'S ARTICLE IS APPALLING 9402140019 940214 LEISURE & ARTS TELEVISION REALITY CAN BE A REAL PAIN BY ROBERT GOLDBERG A FEW WEEKS AGO I ATTACKED IN THE BEST OF FAMILIES MARRIAGE PRIDE AND MADNESS FOR ITS VIOLENCE SEVERAL READERS WROTE IN TO DEFEND THE MINISERIES SAYING THAT IT WAS A TRUE STORY AND NOT JUST VIOLENCE MADE UP FOR TV IN THE BEST OF FAMILIES IS A PARTICULARLY UNPLEASANT BLOODFEST THE TALE OF A MOTHER WHO FLIPS OUT ABUSES HER KIDS RUNS OUT ON HER HUSBAND THEN CONVINCES HER NEW LOVER TO GO ON A RAMPAGE AND KILL OFF EVERYONE IN SIGHT FROM HER EXHUSBAND'S PARENTS TO HER OWN PARENTS FINALLY IN THE FINALE SHE BLOWS HERSELF HER LOVER AND HER TWO CHILDREN TO BITS A MESSY TALE AND IT'S UNDOUBTEDLY TRUE I HAVE IT ON THE AUTHORITY NOT JUST OF CBS BUT ALSO OF SEVERAL NORTH CAROLINA READERS WHO AFFIRM THAT THE EVENTS TOOK PLACE NOT FAR FROM THEIR OWN HOMES BUT IS A TRUE STORY ANY MORE OR LESS WORTHY SHOULD IT BE HELD TO A DIFFERENT STANDARD BECAUSE IT'S TRUE AN INTERESTING QUESTION AND IT CUTS TO THE HEART OF THE CURRENT BOOM IN NETWORK TRUE CRIME STORIES CUTS TO ITS HEART WITH A RUSTY JAGGED 10INCH BLADE TODAY'S PRODUCERS USE TRUENESS TO INTRODUCE ALL SORTS OF SENSATIONALISTIC TWADDLE ONTO THE AIRWAVES WOMEN WHO GET THEIR KIDS TO MURDER THEIR HUSBANDS MEN WHO KILL OFF THEIR ENTIRE FAMILIES PSYCHIATRISTS WHO RAPE THEIR PATIENTS WHILE THEY'RE UNDER SEDATION AND THOSE ARE JUST THE MADEFORTV MOVIES FROM THE PAST YEARANDAHALF WOULD THESE FREAK SHOWS EVEN GET ON THE AIR IF THEY WEREN'T TRUE TRUENESS SEEMS TO GIVE THE DRAMA THE PATINA OF REPORTAGE THE VENEER OF JOURNALISM THAT MAKES THE GORE OR THE SHEER LACK OF ARTISTRY ACCEPTABLE IN A WAY IT WOULDN'T BE IF IT WERE JUST FICTION THAT'S WHAT FAMILIES IS TRYING TO ACHIEVE WHEN IT STATES AT THE END IN THIS COUNTRY MILLIONS OF CHILDREN ARE CURRENTLY TIED UP IN CUSTODY BATTLES BETWEEN THEIR PARENTS THE STORY YOU HAVE JUST SEEN IS AN EXTREME EXAMPLE AS IF WE HAD SPENT THE PAST FOUR HOURS WATCHING AN ANALYSIS OF CURRENT TRENDS INSTEAD OF TWO NUT CASES RUNNING AROUND WAVING HIGHPOWERED RIFLES A FEW YEARS BACK PRODUCERS ATTEMPTED TO GIVE THESE DOCUDRAMAS SOME LARGER ARTISTIC OR SOCIAL RESONANCE AS IN THE BURNING BED NOT THAT OUR STANDARDS WERE SO HIGH 10 YEARS AGO BUT THEY'VE CLEARLY DROPPED TODAY THERE IS NO ACT SO HEINOUS THAT SOME NETWORK WON'T RUSH ONTO THE SCREEN AND YELL LOOK AT THIS BECAUSE THE STORY REALLY HAPPENED EVERYONE IS ABSOLVED OF THE RESPONSIBILITY TO THINK NETWORK PRODUCERS ADVERTISERS VIEWERS SO FOR THE RECORD JUST BECAUSE SOMETHING IS TRUE DOESN'T MAKE IT INTERESTING AND IT DOESN'T NECESSARILY EVEN MAKE IT TRUE TODAY'S DOCUDRAMAS CAN NOW BE REALLIFE FACTBASED OR MY FAVORITE INSPIRED BY ACTUAL EVENTS THERE'S NOTHING INHERENTLY EVIL ABOUT THE DOCUDRAMA GENRE EXCEPT WHEN A FILM'S ONLY VIRTUE IS ITS LURIDNESS BUT WITH THE TRUECRIME GENRE WE'RE HITTING A NEW LOW IN THE WORDS OF ONE READER SO THIS WAS BASED ON A TRUE STORY' SO WHAT WE ARE ALL SICK OF THIS GARBAGE AND WE WON'T WATCH IT ANYMORE BUT THEY PROBABLY WILL UNLESS THEY BOYCOTT THE MINISERIES NOW BEING PLANNED TO RETELL THE STORIES OF TONYA HARDING AND THE MENENDEZ BROTHERS CAN A SERIES CALLED LORENA AND JOHN WAYNE BE FAR BEHIND DREDGING THROUGH THE OTHER SIDE OF THE SAME MURKY WATERS IS THIS WEEK'S TABLOID TRUTH THE MICHAEL JACKSON SCANDAL PBS TUESDAY 910 PM EST A SHOW THAT PROVES THAT JOURNALISTS AREN'T NECESSARILY ANY PURER THAN MOVIEOFTHEWEEK PRODUCERS WHEN THEY SINK THEIR TEETH INTO A REALLY JUICY TALE CORRESPONDENT RICHARD BEN CRAMER AND PRODUCER THOMAS LENNON HAVE ASSEMBLED A LIVELY HOUR TRACING THE EVOLUTION OF THE WACKO JACKO STORY FROM ONE NEWS BLURB TO 100 SCREAMING HEADLINES ABOUT PEDOPHILIA HOW BLOOD IN THE WATER BECOMES A FEEDING FRENZY HOW THE CARNIVAL SIDESHOWS HAVE BECOME THE MAIN EVENT IT'S A JOURNEY TO THE SEAMY SIDE OF THE NEWS COMPLETE WITH A ROGUE'S GALLERY OF CON MEN SCOOPHOUNDS AND ANYONE ELSE WHO'LL CRAWL OUT OF A HOLE FOR A FEW BUCKS THE STORY BEGAN EARLY ONE SUNDAY MORNING WITH A PHONE CALL TO FREELANCE TV REPORTER DON RAY A SEARCH WARRANT HAD BEEN ISSUED FOR MICHAEL JACKSON'S NEVERLAND RANCH MR RAY TOOK THE NEWS TO LOS ANGELES STATION KNBC AND FROM THERE IT WAS ONLY A MATTER OF HOURS BEFORE THE TABLOIDS DESCENDED ON IT THE HORDES FROM EUROPE WERE QUICK OUT OF THE BLOCKS ONE FLEET STREETER TALKS OF SEEING A PARISMATCH EMPLOYEE PUSHING OLD PEOPLE IN WHEELCHAIRS OUT OF THE WAY TO RUN OFF THE PLANE TABLOID TRUTH IS ESPECIALLY ADEPT AT SHOWING HOW COMPETITION FUELS THE FIRE A CURRENT AFFAIR DOESN'T WANT TO LOSE OUT TO HARD COPY AND NO ONE WANTS TO BE BEATEN BY THE NATIONAL ENQUIRER IN THIS HIGHSTAKES ATMOSPHERE IT'S TABLOID RULES THE ALLEGATION OF A FACT IS AS GOOD AS THE FACT ITSELF SAYS HARD COPY'S DIANE DIMOND IN TABLOID TRUTH IT WAS EITHER GOING TO BE SUPERSTAR BEING FALSELY ACCUSED' OR IT WAS GOING TO BE SUPERSTAR PERHAPS GUILTY OF ONE OF THE MOST HEINOUS CRIMES WE KNOW' EITHER WAY I COULDN'T LOSE AS THE STORY UNROLLED CHECKBOOK JOURNALISM WAS THE ORDER OF THE DAY ANYBODY WHO DOESN'T PAY MONEY IT'S LIKE THE CAVALRY RIDING INTO MACHINEGUN FIRE SAYS NEWS OF THE WORLD WRITER STUART WHITE IT'S ANACHRONISTIC JOURNALISM CANNOT BE DONE TODAY AT OUR LEVEL WITHOUT SOMEBODY GETTING A CHECK IN THE END OF COURSE IT'S MONEY THAT DRIVES THE WHOLE ENTERPRISE THAT HAS BROUGHT EVEN THE NETWORK NEWSMAGAZINES DOWN TO THE LEVEL OF THE TABLOIDS AND THE BOBBITTS AND THE MENENDEZES SEVEN YEARS AGO THE SOCALLED UPPER ECHELON OF TELEVISION JOURNALISM LAUGHED AND SNEERED AT OUR STYLE SAYS STEVE DUNLEAVY OF A CURRENT AFFAIR THEY DON'T LAUGH AND SNEER NOW AND THAT'S ANOTHER TRUE STORY 9402140018 940211 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 9402140017 940214 GENIE HOPES AD CAMPAIGN WORKS MAGIC GE'S ONLINE SERVICE TOUTS GAMES GOSSIP IN EFFORT TO REGAIN MEMBERSHIP BY THOMAS E WEBER SPECIAL TO THE WALL STREET JOURNAL NEW YORK FOR A WHILE IT SEEMED AS IF ONLINE SERVICE GENIE HAD PULLED A DISAPPEARING ACT DESPITE GROWING INTEREST IN ONLINE SYSTEMS GENIE BECAME AN ALSORAN WHILE AMERICA ONLINE COMPUSERVE AND PRODIGY GRABBED THE SPOTLIGHT NOW OVERSHADOWED BY THOSE LARGER RIVALS GENIE WANTS TO USE MARKETING MAGIC AND CAST ITSELF AS A TRENDY ALTERNATIVE FOR HIP COMPUTER USERS LOOKING TO HAVE A GOOD TIME ON LINE THIS IS NOT YOUR FATHER'S ONLINE SERVICE PROCLAIM GENIE'S SPLASHY NEW MAGAZINE ADS TOUTING ONLINE GOSSIP AND GAMES THE ADVERTISEMENTS PROMOTE GENERAL ELECTRIC CO'S GENIE AS THE MOST FUN YOU CAN HAVE WITH YOUR COMPUTER ON THERE'S JUST CAUSE FOR AN IMAGE MAKEOVER ACCORDING TO ONLINE OBSERVERS LAST YEAR AMERICA ONLINE INC'S SERVICE PASSED GENIE AND JOINED H&R BLOCK INC'S COMPUSERVE AND PRODIGY AS THE INDUSTRY'S BIG THREE PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO WHILE THE OVERALL INDUSTRY STEAMED AHEAD GENIE TREADED WATER HAMPERED BY A REPUTATION OF BEING DIFFICULT TO USE AND CATERING MOSTLY TO TECHNICALLY ORIENTED SUBSCRIBERS EVEN ONE OF ITS STRENGTHS A STABLE OF GLITZY INTERACTIVE GAMES PITTING USERS AGAINST ONE ANOTHER OVER THE TELEPHONE LINES CONTRIBUTED TO AN IMAGE THAT WAS WELL NERDY GENIE HOPES TO TURN THOSE NOTIONS UPSIDE DOWN BY STRESSING ENTERTAINMENT NOT INFORMATION AS THE MAIN BENEFIT OF USING A PERSONAL COMPUTER TO HOOK UP TO AN ONLINE SERVICE WE WANT TO TRY TO GET ACROSS A SENSE OF THE SERVICE BEING FUN SAID JOHN BARBER GENERAL MANAGER OF GENIE TO SOME DEGREE OUR COMPETITION IS CABLE TELEVISION GENIE MARKETING MANAGER CHIP CHIAPPONE PUT IT ANOTHER WAY WE'RE TRYING TO SHOW AN ATTITUDE GENIE OFFICIALS SAID THE SERVICE'S LOW PROFILE IN THE PAST YEAR WASN'T AN ACCIDENT INSTEAD THEY SAID THE SERVICE DECIDED TO REFRAIN FROM TARGETING NEW SUBSCRIBERS WHILE IT ADDRESSED PROBLEMS INCLUDING ITS DIFFICULTTOUSE INTERFACE OBVIOUSLY TO SPEND A LOT OF MARKETING DOLLARS ON A PRODUCT THAT IS NOT COMPETITIVE IS NOT A SMART WAY TO DO BUSINESS MR BARBER SAID DURING THE NEXT FEW MONTHS GENIE PLANS TO OFFER A GRAPHICAL INTERFACE PROGRAM THAT LETS MEMBERS NAVIGATE AROUND THE SERVICE BY USING A COMPUTER MOUSE TO POINT AT COLORFUL ICONS A VERSION OF THE PROGRAM COMPATIBLE WITH APPLE COMPUTER INC'S MACINTOSH COMPUTERS IS TO BE RELEASED THIS MONTH WHILE ANOTHER VERSION FOR SYSTEMS USING MICROSOFT CORP'S WINDOWS IS SLATED FOR INTRODUCTION IN MARCH GENIE ALSO WILL TRY TO EXPAND THE APPEAL OF ITS ONLINE GAMES BEYOND A CORE OF DEDICATED USERS THE SERVICE OFFERS AIR WARRIOR AN AERIAL COMBAT SIMULATION ALONG WITH OTHER SHOOT'EMUP AND ROLEPLAYING GAMES GENIE'S GRAPHICALLY ORIENTED GAMES RESEMBLE OFFERINGS FROM THE IMAGINATION NETWORK AN ONLINE GAME VENTURE OF SIERRA ONLINE INC AND AMERICAN TELEPHONE & TELEGRAPH CO UNLIKE THE TINY IMAGINATION NETWORK THOUGH GENIE PROVIDES BASIC NEWS INFORMATION AND RESEARCH SERVICES SIMILAR TO THOSE FOUND ON THE BIG THREE SERVICES STEVEN SIECK AN ANALYST AT LINK RESOURCES CORP IN NEW YORK SAID THE HIDDEN GEM OF GENIE'S GAMES COULD PROVE TO BE AN IMPORTANT STRATEGIC ASSET AS THIS MARKET BROADENS THE ROLE OF GAMES AND ENTERTAINMENT WILL BE MORE AND MORE A KEY DRIVER MR SIECK SAID IT'S HIGH TIME THAT GENIE RECOGNIZED THAT GENIE WON'T DISCLOSE HOW MANY MEMBERS IT HAS ESTIMATES PUT GENIE'S SUBSCRIBER BASE AT 400000 WITH LITTLE GROWTH IN 1993 THAT PUTS IT IN FOURTH PLACE BEHIND AMERICA ONLINE WHICH RECENTLY ANNOUNCED THAT IT PASSED THE 600000USER MARK MR BARBER WAS RELUCTANT TO DECLARE THE NEW ADVERTISEMENTS A SUCCESS AFTER ONLY A FEW WEEKS BUT DID SAY GENIE HAS OBSERVED AN INCREASE IN NEW MEMBERSHIPS INDUSTRY OBSERVERS ARE LESS CIRCUMSPECT THEY SAY THE EYECATCHING ADVERTISEMENTS DEFINITELY ARE BEING NOTICED ALTHOUGH IT IS TOO EARLY TO PROJECT THEIR EVENTUAL IMPACT FOR NOW THE ADS ARE LIMITED TO COMPUTERORIENTED CONSUMER PUBLICATIONS BUT WE ARE IN THE PROCESS OF LOOKING AT BROADENING IT MR BARBER SAID IF GENIE SUCCEEDS IN CRAFTING A NEW IMAGE FOR ITSELF IT SHOULD BE ABLE TO PREVENT THE GAP BETWEEN IT AND THE BIG THREE FROM WIDENING BUT DON'T LOOK FOR AN AMERICA ONLINESTYLE SURGE IN GROWTH MR BARBER SAID WE'RE MORE CONCERNED WITH WHAT IT TAKES TO PROFITABLY GROW HE SAID AMERICA ONLINE THEY'VE GOT MAJOR PUBLIC RELATIONS OUT THERE FOR CUSTOMERS THEY DON'T REALLY WANT 9402140016 940214 CREDIT MARKETS FIDELITY SELLS ITS OWN STRUCTURED' BONDS BY THOMAS T VOGEL JR AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IF YOU CAN'T BEAT 'EM JOIN EM THAT IS EVIDENTLY THE TACK THAT FIDELITY INVESTMENTS IS TAKING BY TRYING TO ISSUE AS MUCH AS 1 BILLION OF A NEW DERIVATIVE INVESTMENT BACKED LARGELY BY VOLATILE DEVELOPINGNATION DEBT AND JUNK BONDS THE PRIVATELY PLACED INVESTMENT KNOWN AS THE GLOBAL YIELD TRUST POTENTIALLY PUTS THE BOSTON MUTUALFUND GIANT IN DIRECT COMPETITION WITH LEADING WALL STREET INVESTMENT BANKERS WHO SELL SIMILAR STRUCTURED BONDS TO INSTITUTIONAL INVESTORS INCLUDING FIDELITY'S OWN MUTUAL FUNDS THEY ARE DEFINITELY CUTTING OUT ONE SERVICE THAT WALL STREET PROVIDES WHICH IS STRUCTURED FINANCE SAID AN OFFICIAL AT ONE INVESTMENT BANK RETURNS ON FIDELITY'S DERIVATIVE INVESTMENT WILL BE LINKED TO OR DERIVED FROM RETURNS ON THE UNDERLYING PORTFOLIO INCLUDING NOT ONLY FOREIGN SECURITIES AND JUNK BONDS BUT ALSO OTHER DERIVATIVES SUCH AS OPTIONS AND FUTURES ON INTEREST RATES CURRENCIES AND OTHER ASSETS BORROWING THE FINANCIAL ENGINEERING USED TO CREATE SUCH DERIVATIVES AS COLLATERALIZED MORTGAGE OBLIGATIONS AND KITCHENSINK BONDS ANOTHER TYPE OF MORTGAGE ISSUE FIDELITY'S NEW TRUST WILL REPACKAGE THE CASH FLOWS OF THE UNDERLYING PORTFOLIO INTO NEW SECURITIES INTENDED TO BE MORE PALATABLE TO INSURANCE COMPANIES AND OTHER QUALIFIED INSTITUTIONAL BUYERS THE FABULOUS PERFORMANCE OF DEVELOPINGNATION BONDS IN RECENT YEARS IS A POWERFUL LURE FOR INSTITUTIONS PINCHED BY LOW YIELDS IN THE US BUT MANY PROS BELIEVE ALL THE BIG GAINS HAVE BEEN SQUEEZED OUT OF THOSE MARKETS ALREADY DOUBLEDIGIT TOTAL RETURNS ARE NO LONGER POSSIBLE WITHOUT DERIVATIVES SAYS IGNACIO SOSA MANAGING DIRECTOR IN CHARGE OF EMERGINGMARKET SALES AT LEADING DERIVATIVES DEALER BANKERS TRUST BANKERS TRUST HAS REPACKAGED ABOUT 13 BILLION IN DEBT FROM DEVELOPING COUNTRIES SUCH AS ARGENTINA MEXICO MOROCCO AND TURKEY IN DEALS MEANT TO JUICE UP RETURNS WHICH ESSENTIALLY COMPETE WITH FIDELITY'S GLOBAL YIELD TRUST FIDELITY DIDN'T WISH TO COMMENT ON THE RECORD BUT INSURERS AND OTHERS FAMILIAR WITH FIDELITY'S MARKETING EFFORTS SAID THE TRUST HAS ANTICIPATED YIELDS OF 11 TO 13 HOWEVER INVESTORS WILL SHOULDER CONSIDERABLE RISKS FOR THE CHANCE TO MAKE SUCH RETURNS AMONG THE HAZARDS ARE LACK OF LIQUIDITY OR THE ABILITY TO GET OUT OF THE INVESTMENT AND EXPOSURE TO FOREIGN MARKETS THAT MAY HAVE FEW BIG GAINS AND POTENTIALLY HARROWING SETBACKS IN THE FUTURE THE GLOBAL YIELD TRUST WILL ISSUE BONDS THAT ENABLE INSURANCE COMPANIES TO SKIRT CERTAIN REGULATIONS SUCH AS THOSE THAT FORCE THEM TO PUT UP EXTRA CAPITAL AGAINST HOLDINGS OF RISKY FOREIGN AND JUNK BONDS OR IN SOME CASES PROHIBIT THEM FROM OWNING SUCH SECURITIES AT ALL IN EFFECT THE TRUST WOULD PROVIDE A LOOPHOLE FOR INSURERS TO OWN MORE RISKY SECURITIES THAN WOULD BE PERMISSIBLE IF THEY BOUGHT THEM DIRECTLY ON AVERAGE INSURANCE COMPANIES AND PENSION FUNDS HOLD LESS THAN 5 OF THEIR TOTAL ASSETS OF OVER 6 TRILLION IN FOREIGN SECURITIES ANALYSTS ESTIMATE THOSE INSTITUTIONS WOULD HOLD AS MUCH AS 8 SAY THE ANALYSTS IF IT WEREN'T FOR THE CAPITAL RULES FOR INSTANCE INSURERS MUST SET ASIDE AS MUCH AS 9 OF THE VALUE OF ANY VENEZUELAN BRADY BONDS THEY PURCHASE COMPARED WITH NO RESERVE REQUIREMENTS FOR US TREASURY BONDS BRADY BONDS ARE DEVELOPINGNATION LOANS THAT HAVE BEEN REPACKAGED INTO BONDS UNDER GUIDELINES DEVELOPED BY FORMER TREASURY SECRETARY NICHOLAS BRADY FIDELITY'S DERIVATIVES ARE INTENDED TO LOWER THE OVERALL CAPITAL CHARGES AGAINST HOLDING RISKY DEBT PEOPLE CLOSE TO THE DEAL SAY EVEN SO THE GLOBAL YIELD TRUST HAS BEEN A HARD SELL ALTHOUGH AT LEAST ONE INSURANCE COMPANY HAS MADE PLANS TO INVEST IN THE TRUST A NUMBER OF LARGE INSURERS SAY THEY PLAN TO PASS IT UP SINCE THEY CAN STRUCTURE THEIR OWN PORTFOLIOS TO GET THE SAME OR BETTER RESULTS MARK ARNOLD CHIEF OPERATING OFFICER AT BEA ASSOCIATES A LARGE NEW YORK INVESTOR IN BRADY BONDS SAYS IT IS THE LIQUIDITY ISSUE THAT IS KEEPING US OUT OF MANY STRUCTURED DEALS DERIVATIVE BONDS WHILE THEY DELIVER POWERFUL UPSIDE RETURNS CAN ALSO DIVE DRAMATICALLY DEPENDING ON HOW THEY ARE STRUCTURED HE ADDS INSURANCE COMPANIES AND OTHERS FAMILIAR WITH FIDELITY'S MARKETING EFFORTS SAY THAT WHILE THERE HAVE BEEN A NUMBER OF CHANGES TO THE TRUST'S DESIGN SINCE LAST MAY MOST OF ITS MAJOR COMPONENTS ARE ESSENTIALLY THE SAME IN A MARKETING MEMORANDUM SENT OUT IN MAY FIDELITY SAID IT HOPED TO RAISE 1 BILLION FOR THE TRUST OF WHICH IT WILL INITIALLY INVEST 30 TO 60 IN DEVELOPINGNATION SECURITIES 20 TO 50 IN GLOBAL BONDS AND AS MUCH AS 20 IN US JUNK BONDS THE TRUST WOULD INITIALLY HAVE 50 OF ITS ASSETS IN SECURITIES RATED TRIPLEB OR LOWER BY STANDARD & POOR'S CORP THE NEW YORK RATING AGENCY UNLIKE MOST STRUCTURED NOTES ON THE MARKET THE PORTFOLIO THAT BACKS THE GLOBAL YIELD TRUST WILL BE ACTIVELY MANAGED LIKE A NORMAL MUTUAL FUND FIDELITY PLANS TO BUY THE SECURITIES IT NEEDS FOR THE TRUST IN THE OPEN MARKET SINCE INHOUSE RULES PROHIBIT IT FROM TAKING THE SECURITIES OUT OF THE PORTFOLIOS OF ITS MUTUAL FUNDS THE TRUST DOES HAVE SOME RESTRICTIONS IT CAN'T PUT MORE THAN 25 OF ITS ASSETS IN A SINGLE ISSUER'S SECURITIES AND IT CAN'T INVEST MORE THAN 60 OF ITS MONEY IN A SINGLE FOREIGN CURRENCY BUT OTHERWISE THE TRUST CAN BUY PRACTICALLY ANYTHING IT WANTS INCLUDING SOME INVESTMENTS THAT COULD REV UP POTENTIAL RETURNS AND RISKS EVEN FURTHER FOR EXAMPLE THE TRUST MAY INVEST IN OPTIONS AND FUTURES BASED ON ANY TYPE OF SECURITY INDEX OR CURRENCY RELATED TO ITS INVESTMENTS INCLUDING THOSE NOT TRADED ON EXCHANGES READS THE MEMORANDUM INDEED 10 TO 25 OF THE TRUST WILL BE INITIALLY INVESTED IN STRUCTURED NOTES AND OTHER DERIVATIVES THE DOCUMENT SAYS FIDELITY'S TRUST WHICH WOULD BE SET UP MUCH LIKE A CLOSEDEND FUND WILL ISSUE A FIXED NUMBER OF CLASS A AND CLASS B DERIVATIVES WHICH ARE ESSENTIALLY LIKE SEVENYEAR BONDS THE CLASS A BONDS ARE GUARANTEED THE FIRST 30 OF RETURNS FROM THE TRUST'S PORTFOLIO AND WOULD BE PROTECTED FROM POTENTIAL LOSSES FIDELITY PLEDGES TO REDEEM CLASS A BONDS AT PAR VALUE EXCEPT IF THE TRUST'S WHOLE PORTFOLIO LOSES MORE THAN 40 THESE SENIOR SECURITIES WOULD QUALIFY FOR NAIC1 RATINGS FROM THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS SO THEY'D ENJOY JUST A 3 CAPITAL REQUIREMENT THE MEMORANDUM SAYS BUT BUYERS CAN'T HOLD JUST THE SAFE STUFF FOR EVERY CLASS A THEY PURCHASE THEY MUST ALSO BUY 15 CLASS B BONDS AND THEY MAY NOT SELL EITHER TYPE OF SECURITY SEPARATELY OR SELL THEM AT ALL WITHOUT THE APPROVAL OF THE TRUST'S OTHER INVESTORS THOSE TERMS ARE DESIGNED PARTLY TO PRESERVE THE ISSUE'S STATUS AS A PRIVATE PLACEMENT THE CLASS B BONDS RECEIVE THE REMAINING 70 OF THE TRUST'S RETURNS BUT SHOULDER 100 OF LOSSES UP TO A CERTAIN MAXIMUM AMOUNT IN EFFECT THEY ACT AS SHOCK ABSORBERS FOR THE CLASS A SHARES IF THINGS GO AWRY FIDELITY IS OBLIGATED TO BUY BACK INVESTORS' BONDS IN ORDER TO KEEP THE TRUST'S PORTFOLIO FROM FALLING BELOW 80 TO 90 OF ITS INITIAL VALUE FOR A CERTAIN PERIOD OF TIME SAID TO BE ONE MONTH IF FIDELITY CAN'T KEEP THE PORTFOLIO'S VALUE ABOVE THAT FLOOR IT MUST LIQUIDATE THE TRUST US TREASURY NOTES AND BONDS MANAGED TO CARVE OUT MODERATE GAINS FRIDAY BEFORE TRADING WAS CUT SHORT BY THE SNOWSTORM THAT HIT THE EAST COAST THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR MORE THAN 500 FOR A BOND WITH A 1000 FACE VALUE TO YIELD 640 DOWN FROM 645 ON THURSDAY OVER THE COURSE OF THE ABBREVIATED SESSION PRICES WENT ON A WILD RIDE TRADING WAS VERY CHOPPY SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES INC THERE WAS A LOT OF EARLY BOUNCING AROUND AND THERE WAS LIMITED DEMAND IN THE AFTERNOON INITIALLY THE MARKET SPIKED HIGHER FOLLOWING WHAT ANALYSTS TERMED NEUTRAL ECONOMIC NEWS AFTER A WEEK OF WORRYING ABOUT THE JANUARY PRODUCER PRICE INDEX REPORT THE DATA CAME IN CLOSE TO WHAT ANALYSTS HAD FORECAST THE PPI GAINED 02 OVERALL AND 04 EXCLUDING FOOD AND ENERGY RETAIL SALES MEANWHILE WERE WEAK DROPPING 05 DURING JANUARY ACCORDING TO ANALYSTS THE SALES DATA WERE DEPRESSED BY THE UNSEASONABLY HARSH WINTER WEATHER AND THE SOUTHERN CALIFORNIA EARTHQUAKE BUT AFTER THE INITIAL MOVE HIGHER THE MARKET COLLAPSED BACK INTO NEGATIVE TERRITORY AS SOME ACCOUNTS USED THE HIGHER LEVELS TO UNLOAD SECURITIES EVENTUALLY HOWEVER INVESTORS WHO HAD HAD CASH PILE UP OVER THE COURSE OF THE WEEK BEGAN TO NIBBLE AT THE MARKET TAKING PRICES HIGHER THROUGH MIDDAY AT THE RECOMMENDATION OF THE PUBLIC SECURITIES ASSOCIATION TRADING ENDED AT 2 PM EST 9402140015 940214 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9402140014 940214 ECONOMY CLINTON WEIGHS CUTS TO FINANCE WELFARE REFORM SOME IMMIGRANTS' BENEFITS AS WELL AS HOUSING AID ARE SAID TO BE TARGETS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS CONSIDERING CUTTING 2 BILLION IN BENEFITS FOR ELDERLY IMMIGRANTS TO HELP PAY FOR WELFARE REFORM ACCORDING TO ADMINISTRATION OFFICIALS WHILE CUTTING OFF THE SUPPLEMENTALSECURITYINCOME BENEFITS TO THE PARENTS OF LEGAL ALIENS IS HIGH ON THE ADMINISTRATION'S LIST CUTS ALSO COULD COME IN THE EMERGENCYHOUSING ASSISTANCE PROGRAM IN ADDITION THE ADMINISTRATION IS EXPLORING WHAT SAVINGS COULD BE ACHIEVED BY FERRETING OUT FRAUD IN THE RECENTLY EXPANDED EARNEDINCOME TAX CREDIT FOR LOWINCOME FAMILIES THE ADMINISTRATION'S CHALLENGE IS TO FIND ENOUGH MONEY TO FULFILL THE PRESIDENT'S POLITICALLY POPULAR PLEDGE TO END WELFARE AS WE KNOW IT IN A TIME OF TIGHT FEDERAL BUDGETS MR CLINTON'S DOMESTIC POLICY ADVISERS HAVE SPENT THE PAST SEVERAL WEEKS FLOATING SPENDING PROPOSALS IN SOME CASES ONLY TO SEE THEM SWIFTLY SHOT DOWN THE PRESIDENT WANTS TO ALLOW PEOPLE TO STAY ON WELFARE ONLY TWO YEARS BUT THE WHITE HOUSE SAYS WELFARE REFORM WILL REQUIRE BETWEEN 4 BILLION AND 7 BILLION ANNUALLY ONCE IT IS FULLY PHASED IN BY 1999 THOSE FUNDS WOULD PAY FOR JOB TRAINING AND PLACEMENT CHILD CARE AND A WORK PROGRAM FOR WELFARE RECIPIENTS WHO CAN'T FIND JOBS AFTER BENEFITS RUN OUT BECAUSE OF SPENDING CAPS ENACTED IN 1990 AND THE NEED FOR FUNDS TO FINANCE HEALTHCARE REFORM MONEY TO OVERHAUL WELFARE MUST COME ALMOST ENTIRELY FROM OTHER PROGRAMS THAT AID LOWINCOME AMERICANS THE WHITE HOUSE HASN'T YET FIGURED OUT HOW TO RAISE THE MONEY THAT WELFARE REFORM DEMANDS ADMINISTRATION OFFICIALS ARE BUSY BRINGING EXPECTATIONS IN LINE WITH BUDGETARY REALITY YOU COULD PHASE THIS PROGRAM IN OVER THE NEXT DECADE AND YOU'D STILL BE ENDING WELFARE AS WE KNOW IT AS LONG AS YOU'RE SENDING A CLEAR SIGNAL TO THE GENERATION THAT'S COMING INTO THE PROGRAM SAYS BRUCE REED A TOP DOMESTIC POLICY ADVISER TO THE PRESIDENT WHO IS SUPERVISING THE WELFAREREFORM EFFORT I DON'T THINK THAT HOW MUCH MONEY WE SPEND IS THE ONLY MEASURE OF OUR AMBITION AT A WHITE HOUSE MEETING ON JAN 25 AS PRESIDENT CLINTON PREPARED A STATE OF THE UNION ADDRESS THAT HIGHLIGHTED WELFARE REFORM TWO TOP OFFICIALS FROM MR CLINTON'S INTERAGENCY WORKING GROUP ON WELFARE PRESENTED CABINET OFFICIALS WITH A BUFFET OF IDEAS TO RAISE BETWEEN 65 BILLION AND 78 BILLION AMONG THE OPTIONS DISCUSSED ACCORDING TO A NEW YORK TIMES ARTICLE YESTERDAY WAS THE TAXING OF WELFARE BENEFITS FOOD STAMPS AND HOUSING ASSISTANCE THAT IDEA COULD RAISE AS MUCH AS 4 BILLION A YEAR BUT SEVERAL ADMINISTRATION OFFICIALS INCLUDING MR REED SAY THE LOGISTICAL AND POLITICAL DIFFICULTIES OF SUCH A PLAN MAKE IT UNLIKELY ALSO DROPPED WAS THE IDEA OF CUTTING 12 BILLION FROM A SOCIAL SECURITY PROVISION THAT INCREASES BENEFITS BY NEARLY 50 TO RETIRED FATHERS OF YOUNG CHILDREN NUMEROUS MEMBERS OF THE WORKING GROUP CONSIDERED THAT IDEA THE MOST SENSIBLE OF THE LOT BUT IT WAS DISCARDED BECAUSE IT WOULD FORCE THE WHITE HOUSE TO SAY IT WAS CUTTING SOCIAL SECURITY TO PAY FOR WELFARE REFORM WHAT'S LEFT ARE SPENDING CUTS AMOUNTING TO BETWEEN 25 BILLION AND 3 BILLION AND PLANS TO CHECK INTO OTHER AREAS THAT MIGHT YIELD MORE THE IMMIGRANTAID CUT WOULD FOCUS ON LEGAL ALIENS WHO BRING THEIR PARENTS TO THE US CURRENTLY THEY MUST PROMISE TO SUPPORT THEM FOR AS LONG AS FIVE YEARS ONCE THAT TIME PERIOD EXPIRES HOWEVER THE IMMIGRANT PARENTS ARE ELIGIBLE FOR SUPPLEMENTALSECURITY INCOME AS A RESULT NONCITIZENS HAVE GROWN TO ACCOUNT FOR 20 OF ALL THE ELDERLY ON SUPPLEMENTALSECURITY INCOME THE ADMINISTRATION'S PROPOSAL THAT THE ELDERLY BE PROHIBITED FROM COLLECTING SUCH BENEFITS UNTIL THEY BECAME CITIZENS WOULD BRING IN ONLY 2 BILLION BECAUSE IT WOULD DEAL ONLY WITH NEW PEOPLE COMING INTO THE PROGRAM A SIMILAR PROPOSAL BY REPUBLICAN LAWMAKERS COULD SAVE AS MUCH AS 7 BILLION BY MAKING THE CITIZENSHIP RULE RETROACTIVE THAT WOULD THROW THOUSANDS OF ELDERLY IMMIGRANT RECIPIENTS OFF THE ROLLS ANOTHER 1 BILLION IN ANNUAL SPENDING BY 1999 MIGHT BE CUT FROM EMERGENCY CASH ASSISTANCE FUNDS THAT PAY FOR HOMELESS SHELTERS AND GO TO LOWINCOME AMERICANS WHO FACE EVICTION OR TERMINATION OF UTILITY SERVICES ADMINISTRATION OFFICIALS COMPLAIN THAT STATES HAVE TAKEN ADVANTAGE OF THESE FEDERAL FUNDS FOR PROGRAMS THAT ONCE WERE BACKED BY STATE BUDGETS MEANWHILE OFFICIALS AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ARE BUSY EXAMINING HOW MUCH MIGHT BE SAVED FROM IDENTIFYING FRAUD AND DUPLICATION WITHIN A 16 BILLION ANNUAL TAX CREDIT FOR LOWINCOME FAMILIES OF SPECIAL INTEREST A FATHER WHO MIGHT BE COLLECTING THE EARNEDINCOME TAX CREDIT WHILE THE MOTHER OF HIS CHILD IS RECEIVING WELFARE SAVINGS MIGHT AMOUNT TO ANOTHER 500 MILLION ADMINISTRATION OFFICIALS SAID THOUGH THE ESTIMATES ARE PRELIMINARY A SIMILAR AREA OF INVESTIGATION IS LIMITING THE NUMBER OF DRUG AND ALCOHOL ABUSERS WHO GET SUPPLEMENTALSECURITY BENEFITS ON THE GROUNDS THEIR ADDICTION IS A DISABILITY AMONG THE WAYS OF NARROWING THE NUMBER OF SUCH RECIPIENTS IS THE IDEA OF PROVIDING BENEFITS ONLY TO PEOPLE WHO ENTER CERTAIN TYPES OF TREATMENT PROGRAMS IT'S UNCLEAR HOW MUCH MONEY THAT CHANGE WOULD SAVE 9402140013 940214 TECHNOLOGY BRIEF TEXAS INSTRUMENTS INC NEW CHIP SET IS DEVELOPED FOR SMALLER PORTABLE PCS TEXAS INSTRUMENTS INC SAID IT DEVELOPED A COMPUTER CHIP SET DESIGNED FOR NOTEBOOK AND SUBNOTEBOOK COMPUTERS THE DEVICE DUBBED RIO GRANDE CUTS IN HALF THE NUMBER OF CHIPS NEEDED TO RUN MOST COMPUTER FUNCTIONS FEWER CHIPS IN TURN CAN REDUCE THE SIZE AND WEIGHT OF PORTABLE PCS THE CHIP SET IS PART OF A BROAD TI PUSH ANNOUNCED IN OCTOBER TO TAKE ON CHIP MAKERS INTEL CORP AND ADVANCED MICRO DEVICES INC FOR CONTROL OF THE MARKET FOR THE ELECTRONIC BRAINS THAT RUN PORTABLE COMPUTERS THE CHIP SET INCLUDES A 486SXCLASS MICROPROCESSOR AND A SECOND CHIP THAT CONTROLS ACCESSORY SLOTS USED FOR FAX AND MODEM CAPABILITIES AND ADDITIONAL MEMORY A THIRD CHIP CONTROLS ALL OTHER STANDARD PC FUNCTIONS THE DALLAS COMPANY SAID IT EXPECTS TO START SHIPPING THE DEVICE THIS FALL 9402140012 940214 POLITICS & POLICY CONGRESS'S REPRESENTATIVE TO ELECTION COMMISSION HAS SIXFIGURE SALARY BIG OFFICE AND LITTLE TO DO BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DOUGLAS PATTON HAS A GREAT GOVERNMENT JOB HE HAS A SIXFIGURE SALARY A BIG OFFICE A SECRETARY AND AN ASSISTANT JUST ONE THING IS MISSING FOR THE PAST FEW MONTHS HE HAS HAD RELATIVELY LITTLE TO DO SINCE 1976 MR PATTON HAS SERVED AS CONGRESS'S NONVOTING REPRESENTATIVE ON THE FEDERAL ELECTION COMMISSION THE AGENCY THAT OVERSEES THE CAMPAIGNFINANCE LAWS CRITICS HAVE LONG SNEERED AT THE POSITION ARGUING THAT IT'S ABSURD FOR A GROUP THAT IS BEING REGULATED TO HAVE A SEAT AT THE REGULATOR'S TABLE LAST OCTOBER THE US COURT OF APPEALS HERE TOOK ESSENTIALLY THE SAME VIEW IT RULED THAT THE INCLUSION OF CONGRESSIONAL EMPLOYEES ON THE FEC VIOLATES THE CONSTITUTIONAL SEPARATION OF POWERS BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES OF GOVERNMENT WHILE THE CASE IS PENDING BEFORE THE SUPREME COURT MR PATTON HAS BEEN UNABLE TO PARTICIPATE IN CLOSEDDOOR COMMISSION MEETINGS AND HAS BEEN FORCED TO TURN BACK ALL CONFIDENTIAL FEC DOCUMENTS IN HIS POSSESSION THAT HAS LEFT SOME WONDERING JUST WHAT HE DOES ALL DAY FOR A SALARY THAT IN 1993 ACCORDING TO CONGRESSIONAL PAYROLL RECORDS TOTALED 108234 THIS GUY IS JUST SITTING THERE AND TAKING UP SPACE CHARGES REP BOB LIVINGSTON OF LOUISIANA WHO IS THE RANKING REPUBLICAN ON THE HOUSE SUBCOMMITTEE ON ELECTIONS ONLY IN WASHINGTON IT SEEMS COULD SOMEONE FIND HIMSELF IN MR PATTON'S PREDICAMENT STUCK IN CONSTITUTIONAL LIMBO UNABLE TO CARRY OUT A JOB THAT IS HARD TO JUSTIFY IN THE FIRST PLACE MR PATTON WHO CARRIES THE TITLE OF SPECIAL DEPUTY DECLINED TO COMMENT OVER THE PAST FEW WEEKS MR PATTON'S STATUS HAS CAUSED GREAT CONSTERNATION INSIDE THE FEC MR PATTON'S BOSS CLERKOFTHEHOUSE DONALD ANDERSON ASKED THE FEC TO ALLOW THE SPECIAL DEPUTY TO MAINTAIN HIS NINTHFLOOR OFFICE AT THE AGENCY'S DOWNTOWN HEADQUARTERS UNTIL THE SUPREME COURT RESOLVES THE MATTER AFTER SOME HANDWRINGING THE FEC'S SIX VOTING MEMBERS THREE DEMOCRATS AND THREE REPUBLICANS AGREED TO DO SO MEANWHILE SOME FEC OFFICIALS ARE GRUMBLING PRIVATELY THAT MR PATTON GETS TO KEEP HIS JOB WHILE THE FEC IS SLATED TO BE SQUEEZED BY THE CLINTON BUDGET RELEASED LAST WEEK UNDER THE PRESIDENT'S PLAN THE FEC SAYS IT WOULD BE FORCED TO CUT 33 STAFF POSITIONS HOW MR PATTON IS EARNING HIS PAY THESE DAYS ISN'T CLEAR TREVOR POTTER THE FEC CHAIRMAN NOTES THAT HE HASN'T SEEN MR PATTON SITTING IN THE AUDIENCE AT ANY OF THE AGENCY'S PUBLIC MEETINGS BUT FEC OFFICIALS SAY MR PATTON SENDS HIS ASSISTANT TO KEEP AN EYE ON THINGS AND SOME FIGURE MR PATTON CAN KEEP PRETTY BUSY FIELDING CALLS FROM MEMBERS OF CONGRESS WHO HAVE QUESTIONS ABOUT THE ELECTION LAWS RAYMOND COLLEY THE DEPUTY CLERK OF THE HOUSE SAYS HE WON'T DISCUSS MR PATTON'S SITUATION EXCEPT TO SUGGEST THAT MR PATTON CONTINUES TO PLAY AN IMPORTANT LIAISON ROLE AT THE FEC HE'S STILL OUR EYES AND EARS THERE MR COLLEY SAYS OF COURSE TO CRITICS OF THE SPECIAL DEPUTY SLOT THAT'S PRECISELY THE PROBLEM SOME LIKE REP LIVINGSTON BELIEVE IT'S UNFAIR THAT BECAUSE THE DEMOCRATS CONTROL BOTH THE HOUSE AND SENATE IT'S THE DEMOCRATIC LEADERS WHO GET TO SELECT TWO SPECIAL DEPUTIES WHILE THE GOP PICKS NONE THE SENATE SPECIAL DEPUTY RETIRED LAST SEPTEMBER AND HASN'T BEEN REPLACED BUT OTHERS THINK THE ISSUE IS MORE FUNDAMENTAL THEY CONTEND THAT THE SPECIAL DEPUTY NO MATTER WHICH PARTY APPOINTS HIM IS NOTHING BUT A SPY IN THE FEC'S MIDST THERE IS NO LEGITIMATE RATIONALE FOR THE POST SAYS LARRY SABATO A PROFESSOR OF GOVERNMENT AT THE UNIVERSITY OF VIRGINIA WITH SUCH A SETUP THIS IS A COMMISSION GUARANTEED TO FAIL THE SPECIAL DEPUTY POSITIONS HAVE BEEN AROUND SINCE THE EARLY DAYS OF THE FEC WHICH WAS ESTABLISHED IN THE AFTERMATH OF WATERGATE AT FIRST THE FEC HAD EIGHT COMMISSIONERS SIX OF THEM TWO PICKED BY THE PRESIDENT TWO BY THE HOUSE AND TWO BY THE SENATE WERE VOTING MEMBERS IN ADDITION THE CLERK OF THE HOUSE AND THE SECRETARY OF THE SENATE EACH GOT TO ACT AS NONVOTING MEMBERS OF THE FEC BUT IN 1976 THE SUPREME COURT RULED THAT SUCH AN ARRANGEMENT VIOLATED THE SEPARATIONOFPOWERS PRINCIPLE SO CONGRESS REWROTE THE RULES THE PRESIDENT WOULD APPOINT AND THE SENATE CONFIRM ALL SIX VOTING MEMBERS OF THE FEC YET DESPITE A STERN WARNING FROM ANTONIN SCALIA WHO WAS THEN A SENIOR JUSTICE DEPARTMENT OFFICIAL AND IS NOW A SUPREME COURT JUSTICE THAT THE PRESENCE OF CONGRESSIONAL REPRESENTATIVES PERPETUATES A SERIOUS CONSTITUTIONAL ISSUE THEY REMAINED PART OF THE FEC CONGRESS WAS REAL NERVOUS AND I GUESS THEY WANTED TO KEEP AN EYE ON THE COMMISSION SAYS REP AL SWIFT THE WASHINGTON DEMOCRAT WHO HEADS THE HOUSE SUBCOMMITTEE ON ELECTIONS THEY'RE STILL NOT OUR FAVORITE AGENCY BECAUSE THEY REGULATE US HE ADDS BUT THAT HIGHLEVEL OF PARANOIA HAS SINCE ABATED INTO A SIMMERING ONE SCOTT THOMAS AN FEC COMMISSIONER WHO HAS BEEN WITH THE AGENCY SINCE 1975 SAYS THAT HAVING THE SPECIAL DEPUTIES AROUND DOESN'T MAKE THINGS UNCOMFORTABLE I HAVEN'T REALLY SEEN ANY KIND OF IMPROPER INFLUENCE SAYS MR THOMAS A DEMOCRAT REPUBLICAN JOAN AIKENS WHO HAS BEEN AN FEC COMMISSIONER SINCE THE AGENCY'S CREATION SAYS THAT THE SPECIAL DEPUTIES OFTEN BRING ADDED PERSPECTIVE TO DELIBERATIONS WHEN QUESTIONS ARISE ON VARIOUS ISSUES THEY CAN PROVIDE USEFUL INFORMATION SHE SAYS NOTING THAT MR PATTON FOR EXAMPLE IS A DIRECTOR OF FIRST NATIONAL BANK OF MARYLAND/DC BUT SUCH SANGUINE FEELINGS HAVEN'T KEPT THE SPECIAL DEPUTY POST FROM BECOMING EMBROILED IN CONTROVERSY AFTER HE LOST HIS SENATE SEAT LAST YEAR GEORGIA DEMOCRAT WYCHE FOWLER WAS NAMED A SPECIAL DEPUTY EVEN THOUGH THE FEC HAD GOTTEN COMPLAINTS ALLEGING THAT MR FOWLER AND PAUL COVERDELL HIS REPUBLICAN OPPONENT WHO WON THE ELECTION HAD RECEIVED EXCESSIVE CAMPAIGN CONTRIBUTIONS FROM THEIR RESPECTIVE NATIONAL PARTIES MR FOWLER WHO HAS SINCE LEFT THE FEC FOR A PRIVATE LAW PRACTICE INSISTS THAT HIS SOLE MISSION AT THE AGENCY WAS TO HELP BRING ALONG CAMPAIGN FINANCE REFORM LEGISLATION I'D LIKE TO THINK I MADE A CONTRIBUTION HE SAYS LAST FALL'S APPEALS COURT DECISION HAS LED TO ITS OWN DIFFICULTIES THE CASE INVOLVED A CHALLENGE BY THE NATIONAL RIFLE ASSOCIATION OF AN FEC RULING CONCERNING A TRANSFER OF 416000 FROM ONE BRANCH OF THE NRA TO THE GUN GROUP'S POLITICAL ACTION COMMITTEE THE APPEALS COURT AGREED WITH THE NRA THAT THE FEC COULDN'T PURSUE THE CASE BECAUSE OF THE SEPARATIONOFPOWERS PROBLEM NOW SEVEN OTHER FEC RULINGS ARE BEING CHALLENGED ON THE SAME GROUNDS AMONG THEM ARE CASES INVOLVING FORMER PRESIDENTIAL CANDIDATES PAT ROBERTSON AND LYNDON LAROUCHE AS FOR MR PATTON HE STILL HAS HIS SHARE OF DEFENDERS SHOULD HE BE LAID OFF UNTIL THE SUPREME COURT CASE IS DECIDED REP SWIFT ASKS IS THAT FAIR NONETHELESS THE CONGRESSMAN RECENTLY AGREED WITH REP LIVINGSTON TO CONSIDER ABOLISHING THE SPECIAL DEPUTIES POSITIONS AS PART OF A BROADER RESTRUCTURING OF THE FEC IN THE MEANTIME MR PATTON APPEARS TO BE TRYING TO FILL HIS TIME THE BEST HE CAN HE'S HERE WHEN I LEAVE AND I LEAVE AROUND 6 O'CLOCK SAYS JOHN SURINA THE FEC STAFF DIRECTOR HE SEEMS VERY BUSY BUT THE ASSURANCE I CAN GIVE YOU IS THAT HE'S NOT BUSY ON MATTERS HE OUGHT NOT BE BUSY ON 9402140011 940214 MORGAN DEAL RAISES QUERIES ABOUT CONFLICTS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IS MORGAN STANLEY GROUP INC TRYING TO SALVAGE A SOURED MERCHANTBANKING DEAL ON THE BACKS OF UNSUSPECTING INVESTORS THAT'S WHAT SOME ANALYSTS ARE SAYING ABOUT A 185 MILLION PRIVATE JUNKBOND ISSUE FOR WHICH MORGAN STANLEY IS THE SOLE MANAGER THE ISSUE IS FOR SULLIVAN COMMUNICATIONS INC AND A SISTER COMPANY LARGE COMMERCIAL PRINTING CONCERNS THAT MORGAN HAS CONTROLLED SINCE APRIL ANALYSTS CITE SEVERAL SIGNIFICANT PROBLEMS WITH THE OFFERING AMONG THEM SULLIVAN HAS VIRTUALLY NO CASH FLOW TO PAY THE BONDS' INTEREST LOSSES FROM ITS COUPONBOOKLET BUSINESS APPEAR TO BE MOUNTING THE COMPANY IS LIKELY TO SPEND THE OFFERING'S NET PROCEEDS BY DECEMBER AND THE OFFERING MEMORANDUM SHOWN TO PROSPECTIVE BUYERS APPEARS TO BE LESS THAN CANDID ABOUT SULLIVAN'S COUPONPRINTING PAGE COUNT ANALYSTS SAY MEANWHILE MORGAN FACES POTENTIAL CONFLICTS IN THE DEAL WHICH IS SET TO BE PRICED TOMORROW TWO SULLIVAN DIRECTORS ARE MORGAN EXECUTIVES THE INVESTMENT BANK'S MORGAN STANLEY LEVERAGED EQUITY FUND II UNIT HOLDS THE MAJORITY OF SULLIVAN'S EQUITY AND MORGAN STANDS TO POCKET UNDERWRITING FEES OF 65 MILLION FOR BUYING NEW SULLIVAN NOTES AND DEBENTURES AND RESELLING THEM TO INVESTORS IT'S AN UNCONSCIONABLE OFFERING FROM THE POINT OF VIEW OF ANY FISCAL RESPONSIBILITY AND IS RIFE WITH CONFLICTS OF INTEREST SAYS C CLIVE MUNRO AN ANALYST SPECIALIZING IN THE PRINTING BUSINESS AT MONTECITO RESEARCH IN ST JOHN VIRGIN ISLANDS MORGAN'S HOPE IS THAT THERE ARE SOME BIG SUCKERS OUT THERE WHO CAN'T READ A FINANCIAL STATEMENT THE INVESTMENT BANK'S FEE HE ADDS ISN'T BAD FOR BAILING THEMSELVES OUT THROUGH A SUCCESSFUL OFFERING MORGAN EFFECTIVELY WOULD BE BUYING TIME FOR BELEAGUERED SULLIVAN SO IT CAN REAP A RETURN ON ITS INVESTMENT IF AND WHEN THE PRINTING COMPANY REBOUNDS SOME ANALYSTS SAY OFFICIALS AT MORGAN AND SULLIVAN DECLINED TO COMMENT CITING REGULATORY RESTRICTIONS ON TALKING ABOUT PENDING UNDERWRITING DEALS THE MORGANSULLIVAN OFFERING PROVIDES A PEEK INTO THE SHADOWY WORLD OF PRIVATE PLACEMENTS WHICH ARE SOLD TO SOPHISTICATED INSTITUTIONAL INVESTORS AND DON'T REQUIRE MANY OF THE RIGID REGULATORY REQUIREMENTS OF PUBLIC OFFERINGS THE DEAL ALSO UNDERSCORES THE CONFLICTS WALL STREET INVESTMENT BANKS FACE WHEN ACTING AS MERCHANT BANKERS USING THEIR OWN MONEY TO INVEST IN DEALS AND UNDERWRITERS AND IT REFLECTS EXCESSES IN THE BOOMING MARKET FOR NEW HIGHYIELD HIGHRISK JUNK BONDS SOME ANALYSTS SAY MORGAN'S RELATIONSHIP WITH SULLIVAN DOESN'T VIOLATE ANY SECURITIES REGULATIONS INDEED MORGAN AND OTHER INVESTMENT BANKS TYPICALLY INVEST IN MERCHANTBANKING DEALS AND IT'S NOT UNUSUAL FOR THEIR EXECUTIVES TO SIT ON THE BOARDS OF THE FIRMS INVOLVED MORGAN'S CLOSE RELATIONSHIP WITH BRENTWOOD TENNBASED SULLIVAN BEGAN IN APRIL THAT'S WHEN A GROUP FORMED BY MORGAN'S LEVERAGEDBUYOUT UNIT ALONG WITH OTHER INSTITUTIONAL INVESTORS AND MANAGERS INVESTED 40 MILLION IN THE PRINTING CONCERN MORGAN WHICH AT THIS POINT APPEARS UNWILLING TO ANTE UP MORE MONEY INTO SULLIVAN CURRENTLY OWNS 67 OF THE COMPANY'S OUTSTANDING COMMON SHARES AND 74 OF ITS PREFERRED SHARES BUT SULLIVAN HASN'T FARED WELL IN RECENT YEARS ONE OF SULLIVAN'S MAJOR BUSINESS LINES PRINTING THE COUPON BOOKLETS THAT ARE TUCKED INTO NEWSPAPERS EACH WEEK AROUND THE COUNTRY IS BADLY DETERIORATING TRIGGERED BY OVERCAPACITY AND PRICECUTTING IN RECENT YEARS WITH CURRENT SELLING PRICES AND SHRINKING BOOKLETS SULLIVAN'S LOSSES ARE LIKELY TO REACH 35 MILLION FROM ITS COUPON BUSINESS FOR CALENDAR 1994 SAY ANALYSTS WHO FOLLOW THE COUPONPRINTING BUSINESS IT HAS HAD SLUMPING REVENUE AND GROSS MARGINS AND EARNINGS BEFORE NET INTEREST EXPENSE INCOME TAXES DEPRECIATION AND AMORTIZATION HAVE FALLEN EVERY YEAR SINCE 1990 THE COMPANY'S CASH FLOW FROM OPERATIONS MUST BE SUBSTANTIALLY INCREASED IN ORDER FOR THE COMPANY TO BE ABLE TO MEET ITS DEBT SERVICE OBLIGATIONS THE OFFERING MEMO SAYS BUT THERE'S A HITCH SULLIVAN'S COUPON BUSINESS EXPECTS TO FACE CONTINUED PRICING PRESSURE AND NEGATIVE GROSS MARGINS THE MEMO SAYS SULLIVAN ADDS THAT IT EXPECTS TO FUND INCREASED OPERATING LOSSES IN THAT BUSINESS WITH A PORTION OF THE OFFERING'S NET PROCEEDS I LOOK AT THIS AND QUESTION THE FIDUCIARY RESPONSIBILITY OF A PORTFOLIO MANAGER THAT BUYS A DEBT DEAL WITH VIRTUALLY NO CASHFLOW COVERAGE SAYS GREGORY EKIZIAN AN ANALYST AT EAGLE ASSET MANAGEMENT IN TAMPA FLA HERE'S HOW THE CASH FROM THE OFFERING WILL BE SPENT MORGAN ALONG WITH ITS ACCOUNTING AND LAW FIRMS WILL RECEIVE A FEE TOTALING ABOUT 9 MILLION ABOUT 1335 MILLION WILL GO TO REPAY BANK LOANS THAT LEAVES 43 MILLION FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES THE MEMO SAYS BUT WITH 1994 CASH INTEREST COSTS OF 25 MILLION AND CAPITAL SPENDING OF 15 MILLION SULLIVAN WOULD RUN THROUGH NEARLY THE ENTIRE 43 MILLION BY DECEMBER ANALYSTS SAY THE DEAL HAS TWO PARTS 135 MILLION OF SENIOR STEPUP NOTES DUE 2004 FOR SULLIVAN GRAPHICS INC A SISTER COMPANY AND 50 MILLION OF SENIOR DISCOUNT DEBENTURES DUE 2006 PLUS WARRANTS TO BUY COMMON AND PREFERRED STOCK OF SULLIVAN COMMUNICATIONS THE SULLIVAN GRAPHICS' NOTES WILL PAY ANNUAL INTEREST OF 7 FOR THE FIRST THREE YEARS AND 14 FOR SEVEN YEARS STEPUPS ARE NOTES WITH TWO SEPARATE INTEREST RATES TYPICALLY THE NOTE PAYS A LOWER RATE INITIALLY THEN STEPS UP OR JUMPS TO A HIGHER RATE THE OFFERINGS ARE A RISKY BET FOR INVESTORS SULLIVAN'S TOTAL INDEBTEDNESS IS ABOUT 300 MILLION WITH SHAREHOLDER EQUITY OF JUST 28 MILLION INDEED THE COMPANY'S EARNINGS HAVEN'T COVERED FIXED CHARGES IN THE PAST FOUR YEARS MOREOVER SULLIVAN SAYS ITS ABILITY TO PAY CASH INTEREST ON THE DEBENTURES BEGINNING IN 2000 IS ALMOST ENTIRELY DEPENDENT UPON THE EARNINGS OF ITS SUBSIDIARIES AND THE DISTRIBUTION OF THOSE EARNINGS ANALYSTS CITE SOME QUESTIONABLE ASSERTIONS IN THE OFFERING DOCUMENT FOR INSTANCE THE MEMO SAYS THE NUMBER OF PAGES PER ISSUE PUBLISHED BY SULLIVAN HAS INCREASED STEADILY SINCE THE COMPANY ENTERED THE COUPON FREESTANDINGINSERT MARKET ON THE CONTRARY MONTECITO'S MR MUNRO ASSERTS THAT THE COMPANY'S AVERAGE PAGE COUNTS PER ISSUE HAVE FALLEN TO 132 IN JANUARY FROM 207 IN 1993'S THIRD QUARTER MORGAN WILL COMPENSATE INVESTORS FOR THE RISKS WITH AN ATTRACTIVE YIELD SOME WALL STREET EXECUTIVES SAY THESE EXECUTIVES ARGUE THAT INVESTORS IN SUCH 144A PRIVATE PLACEMENTS NAMED FOR THE SECURITIES AND EXCHANGE COMMISSION RULE THAT LIFTS CERTAIN REGISTRATION REQUIREMENTS ARE SAVVY ENOUGH TO PROPERLY ASSESS MATTERS THEY ASSERT THAT SULLIVAN HAS SUFFICIENT CASH FLOW TO PAY THE BONDS' INTEREST AND THEY SAY SULLIVAN SIMPLY IS TRYING TO REFINANCE ITS SHORTTERM DEBT OBLIGATIONS AND CHANGE ITS CAPITAL STRUCTURE TO MATCH THOSE OF ITS TWO MAJOR COMPETITORS THE SULLIVAN DEAL IS TICKLISH FOR MORGAN TWO SULLIVAN DIRECTORS ARE MORGAN EXECUTIVES FRANK V SICA A MANAGING DIRECTOR AND JAMES S HOCH A PRINCIPAL AS A RESULT OF THESE RELATIONSHIPS MORGAN STANLEY GROUP INC HAS EFFECTIVE CONTROL OVER THE MANAGEMENT AND POLICIES OF THE COMPANY THE OFFERING MEMO SAYS THOUGH SULLIVAN HAS STUMBLED ITS SENIOR EXECUTIVES HAVE THRIVED JAMES T SULLIVAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED A 1992 SALARY OF 600000 EVEN AS THE COMPANY LOST MORE THAN 27 MILLION ACCORDING TO THE MEMO 9402140010 940214 TECHNOLOGY MERCK OFFICIALS SUGGEST DRUG MAKER WILL AIM FOR GENERIC MARKET OVERSEAS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERCK & CO'S MARTIN J WYGOD TOLD A GROUP OF ANALYSTS THAT THE PREMIER DRUG MAKER WOULD CHANGE FROM ONE OF THE HIGHEST MARGIN PHARMACEUTICAL COMPANIES TO ONE OF THE LOWEST BECAUSE OF ITS ACQUISITION OF MEDCO CONTAINMENT SERVICES INC OTHER MERCK OFFICIALS HASTENED TO TEMPER THE MEDCO CHAIRMAN'S CHARACTERIZATION AFTER AN ANALYSTS MEETING ON FRIDAY BUT THE DRAMATIC STATEMENT DROVE HOME THE POINT THAT MERCK IS CHANGING INTO A VERY DIFFERENT COMPANY TO RESPOND TO A RAPIDLY CHANGING PHARMACEUTICAL MARKET A COUPLE HUNDRED ANALYSTS BRAVED A RAGING BLIZZARD TO ATTEND MERCK'S FIVEHOUR EXPLANATION OF ITS BUSINESS STRATEGY CHIEFLY REGARDING MEDCO THE MAILORDER PHARMACY AND MANAGEDCARE COMPANY IT BOUGHT LAST YEAR IN HIS FIRST PUBLIC PRESENTATION AS A MERCK EXECUTIVE MR WYGOD WAS CLEARLY THE FOCUS OF ANALYSTS' INTEREST BOTH AS MEDCO'S ARCHITECT AND AS THE MOST TALKED ABOUT CONTENDER FOR MERCK'S CHAIRMANSHIP AFTER P ROY VAGELOS RETIRES IN NOVEMBER IN JANUARY MERCK SAID IT WAS MERGING MEDCO INTO A NEW UNIT CALLED MERCKMEDCO US MANAGED CARE DIVISION WHICH ALSO INCLUDED MERCK'S EXISTING MANAGED CARE BUSINESS MR WYGOD WAS NAMED HEAD OF THE US AND CANADIAN PRESCRIPTION DRUG OPERATIONS WHICH INCLUDE THE NEW DIVISION TO HELP ANALYSTS UNDERSTAND THE FINANCIAL IMPLICATIONS OF MERCK'S NEW STRATEGY HE DESCRIBED A DEFLATIONARY PHARMACEUTICAL ENVIRONMENT WHERE PROFITS ARE DRIVEN BY MARKET SHARE RATHER THAN BY MARGINS JUDY C LEWENT MERCK CHIEF FINANCIAL OFFICER SAID MEDCO'S 9 PRETAX MARGIN WILL ERODE MERCK'S 35 MARGIN BUT ONLY TO THE LEVEL OF OTHER PHARMACEUTICAL COMPANIES MARGINS ARE AN OBSOLETE FINANCIAL INDICATOR SHE ADDED AND AGREED THAT MARKET SHARE AND CASH FLOW WILL BE THE NEW MEASURES OF SUCCESS MR WYGOD SAID MEDCO IS AGGRESSIVELY GOING AFTER NEW BUSINESS TO EXPAND ITS MARKET SHARE THE NUMBER OF PEOPLE PARTICIPATING UNDER MEDCO PROGRAMS HAS GROWN BY 19 TO 38 MILLION SINCE THE MERGER WAS ANNOUNCED IN JULY TO WIN NEW BUSINESS FROM HEALTH PLANS FOR WHICH MEDCO MANAGES PHARMACY COSTS THE COMPANY HAS BEEN DEVELOPING CAPITATION AND OTHER RISKSHARING AGREEMENTS MR WYGOD SAID CAPITATION COMES IN VARIOUS FORMS BUT GENERALLY THE SUPPLIER SUCH AS MERCKMEDCO AGREES TO CHARGE A HEALTH PLAN A PERPERSON FIXED RATE PER MONTH OR PER YEAR REGARDLESS OF THE AMOUNT OF DRUGS THE HEALTH PLAN ACTUALLY USES MR WYGOD ADDED THAT CAPITATION WILL BE ONE OF THE MOST RAPIDLY GROWING TYPES OF AGREEMENTS WITH HEALTH PLANS OVER THE NEXT FIVE YEARS IN ANOTHER SIGN OF HOW MUCH THINGS HAVE CHANGED MERCK OFFICIALS SAID THE COMPANY IS GIVING GENERIC DRUGS A PROMINENT PLACE IN THE MERCK PRODUCT LINEUP GENERIC DRUGS WILL PLAY A CENTRAL ROLE IN MERCK'S OVERSEAS STRATEGY SAID JERRY T JACKSON EXECUTIVE VICE PRESIDENT OF MERCK'S OVERSEAS BUSINESS DESPITE STRENUOUS EFFORTS TO CONTROL DRUG COSTS MOST COUNTRIES HAVEN'T USED GENERIC DRUGS TO ANY MEANINGFUL EXTENT HE SAID AS MERCK TAKES ITS MEDCO STRATEGY ABROAD IT WILL USE GENERICS TO SHOW THE COSTREDUCTION POSSIBILITIES HE SAID DR VAGELOS SAID THE COMPANY PLANS TO RAISE ITS RESEARCH AND DEVELOPMENT SPENDING BY 12 TO 13 BILLION IN PART TO PAY FOR OUTCOMES RESEARCH WHICH MANAGED CARE CUSTOMERS ARE DEMANDING TO DETERMINE THE COSTEFFECTIVENESS OF A DRUG EDWARD M SCOLNICK MERCK'S RESEARCH HEAD UPDATED THE STATUS OF DRUGS IN DEVELOPMENT INCLUDING FOSAMAX THE OSTEOPOROSIS TREATMENT THE COMPANY PLANS TO SUBMIT FOR GOVERNMENT APPROVAL NEXT YEAR A HOST OF OTHER PROSPECTS INCLUDING DRUGS TO TREAT MIGRAINES ASTHMA AND AIDS WERE PARTIALLY UNVEILED WITH THE PROMISE OF MORE DETAILS AT AN APRIL ANALYST MEETING DEVOTED TO RESEARCH AS MERCK OUTLINED ITS STRATEGY FOR THE COMING YEARS ANALYSTS CONTINUED TO WONDER HOW OTHER COMPANIES WOULD RESPOND TO THE CHANGING MARKETPLACE WHERE POWERFUL MANAGED CARE BUYERS ARE PUTTING PRESSURE ON PRESCRIPTION DRUG PRICES BY DEMANDING DISCOUNTS TALK OF AN ALLIANCE BETWEEN DRUG COMPANIES DOMINATED A PFIZER INC ANALYST MEETING EARLIER IN THE WEEK AND AMID A RALLY IN MCKESSON CORP SHARES SPECULATION SWIRLED THAT THE BIG DRUG DISTRIBUTOR WHICH OWNS PCS HEALTH SYSTEMS INC WAS AN ACQUISITION TARGET OF A DRUG COMPANY OR CONSORTIUM OF COMPANIES PCS WHICH SERVICES ABOUT 45 MILLION PEOPLE IS MEDCO'S CHIEF COMPETITOR MOREOVER MCKESSON OWNS ONE OF THE LARGEST DRUG WHOLESALERS IN NORTH AMERICA WE CAN BE A VERY VALUABLE PARTNER TO ANY DRUG COMPANY OR CONSORTIUM A MCKESSON SPOKESMAN SAID BUT HE ADDS WE BELIEVE WE'RE BUILDING A COMPANY FOR THE FUTURE WE HAVE EXCELLENT LONGTERM PROSPECTS AND WE INTEND TO PURSUE OUR VISION AS AN INDEPENDENT COMPANY HE DECLINED TO DISCUSS RUMORS OF A MERGER OR ALLIANCE IN THE WORKS INDUSTRY EXECUTIVES AND ANALYSTS ACKNOWLEDGE THAT COMPANIES ARE EXPLORING ACQUISITIONS AND OTHER ALTERNATIVES TO RESPOND TO MERCKMEDCO AND THE MARKETPLACE UPHEAVAL INVESTMENT BANKERS AND CONSULTANTS HAVE TO STAND IN LINE TO PITCH MERGER AND OTHER IDEAS TO DRUG COMPANIES ONE INVESTMENT BANKER SAID WE GET A SENSE THERE'S A LOT OF CONFUSION AMONG THE MANUFACTURERS SAID AN INDUSTRY OFFICIAL 9402140009 940214 WORLD MARKETS TOKYO STOCKS DECLINE BY 26 EARLY MONDAY IN REACTION TO FAILED USJAPAN TRADE TALKS A WALL STREET JOURNAL NEWS ROUNDUP JAPANESE STOCKS WERE SHARPLY LOWER EARLY MONDAY IN THE WAKE OF THE FAILED TRADE TALKS BETWEEN THE US AND JAPAN THE NIKKEI STOCK AVERAGE ENDED THE MORNING SESSION AT 1947565 DOWN 51505 POINTS OR 26 TRADING VOLUME WAS RELATIVELY THIN WITH MOST INVESTORS WAITING TO SEE IF THE RECENT MARKET RALLY HAD INDEED BEEN BROKEN THE MARKET WAS FALLING IN RESPONSE TO THE STRONGER YEN WHICH MADE STRONG GAINS AFTER THE USJAPAN TRADE TALKS COLLAPSED FRIDAY A STRONGER YEN MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS AND COULD BATTER JAPAN'S EXPORTDEPENDENT ECONOMY THE STOCK MARKET HAS GAINED 15 THIS YEAR ON EXPECTATIONS OF A JAPANESE BUSINESS RECOVERY BUT A SHARPLY STRONGER YEN COULD CHANGE THAT FORECAST THE CURRENCY WAS TRADING AT 10617 YEN TO THE DOLLAR MONDAY COMPARED WITH 10825 YEN BEFORE THE TRADE TALKS COLLAPSED THE YEN'S APPRECIATION AS A RESULT OF THE TRADE TALKS HAS REALLY CHANGED THE SITUATION IN THE MARKET SAID SHIGERU AKIBA HEAD OF YEN EQUITY TRADING AT UBS SECURITIES LTD THE MARKET COULD GO INITIALLY AS LOW AS 19200 IN RESPONSE TO THE STRONGER YEN HE ADDED EXPORTDEPENDENT COMPANIES SUCH AS ELECTRONICS MANUFACTURERS AND AUTOMOBILE MAKERS WERE AMONG MONDAY MORNING'S BIGGEST CASUALTIES LONDON SHARES LOST GROUND FRIDAY PARTLY ON JITTERS ABOUT US ECONOMIC DATA BUT ENDED UP FROM LOWS A PATTERN FOR MANY OTHER EUROPEAN BOURSES FRANKFURT STOCKS TUMBLED 13 BECAUSE OF FALLING GERMAN BOND PRICES THE TOKYO MARKET WAS CLOSED FRIDAY FOR A JAPANESE HOLIDAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11602 UP 022 REFLECTING INCREASES IN AMERICAN AND ASIA/PACIFIC MARKETS AND A DROP IN MARKETS IN EUROPE FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7840 UP 120 OR 155 WITH UNICORD OF THAILAND POSTING A 5 GAIN IN ITS LOCAL CURRENCY HEALTHCARE STOCKS TRAILED AT 15781 DOWN 283 OR 176 WITH COLUMBIA/HCA HEALTHCARE OF THE US SLIDING 463 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 281 POINTS TO 33789 MAKING LAST WEEK'S SLIDE TOTAL 965 POINTS THE FT 30STOCK INDEX DECLINED 241 POINTS TO 25953 VOLUME WAS 9882 MILLION SHARES COMPARED WITH 995 MILLION SHARES A DAY EARLIER THE BENCHMARK 100 INDEX FELL IN MORNING DEALINGS ON NERVOUSNESS ABOUT US DATA ON RETAIL SALES AND PRODUCER PRICES AND THE GENERAL UNEASINESS KEPT PRICES WEAK THE FT 100'S INTRADAY LOW WAS 33493 ONCE THE US ISSUED THE ECONOMIC REPORTS SHOWING PRODUCER PRICES ROSE LESS THAN EXPECTED LAST MONTH AND RETAIL SALES FELL A BIT MORE THAN ANTICIPATED SHARES IN LONDON ROSE A LITTLE THOUGH WALL STREET OPENED SLIGHTLY WEAKER LONDON INVESTORS WERE RELIEVED THAT THE DATA DIDN'T PRODUCE A US SELLOFF AND PRICES ON THE BRITISH BOURSE MOVED UP FROM LOWS STILL PRICES WERE IN NEGATIVE TERRITORY MOST OF THE DAY WITH THE MAIN INDEX MARKING A TRADING HIGH OF 33883 LAST WEEK'S DROP WAS VIEWED AS A HEALTHY CORRECTION TO HELP ENSURE A MORE SUSTAINABLE RISE IN THE LONG TERM THIS WEEK THE MARKET EXPECTS BRITISH DATA ON INFLATION RETAIL SALES AND EMPLOYMENT AND COMPANY FINANCIAL RESULTS WILL PLAY A BIGGER ROLE IN THE DIRECTION OF THE MARKET WHICH EXPECTS STRONG PROFIT IMPROVEMENTS IN FRANKFURT THE DAX 30STOCK INDEX LOST 2835 POINTS TO 209061 MARKING THE FIFTH SESSION OF SHARP SWINGS AND A DROP OF 4764 POINTS LAST WEEK DEALINGS HAVE BEEN TECHNICALLY FOCUSED WITH A STRONG LINK BETWEEN MOVEMENTS IN GERMAN BOND FUTURES AND STOCK PRICES INVESTORS UNCERTAIN ABOUT FURTHER GERMAN INTERESTRATE CUTS HAVE BEEN CAUTIOUS LEAVING THE MARKET DOMINATED BY TRADERS TAKING SHORTTERM POSITIONS WHICH ALSO INCREASES VOLATILITY THURSDAY'S SHARP DROP ON WALL STREET ALSO PRESSURED FRANKFURT STOCKS FRIDAY WHEN ISSUES SENSITIVE TO INTEREST RATES SUCH AS BANKS AND INSURERS WERE HIT HARDEST AS IN LONDON PARIS STOCKS SLID BUT ENDED UP FROM LOWS WHEN THE MAIN INDEX HAD SUNK 2 AFTER THE RELEASE OF THE US PRICE DATA WHCH WERE CONSIDERED ENCOURAGING ESPECIALLY THE PRODUCER PRICE REPORT AND IN AMSTERDAM SHARES FELL BUT FINISHED ABOVE THEIR LOWEST LEVELS AS A FIRMER START ON WALL STREET IMPROVED SENTIMENT FOLLOWING A LONDONLED SELLOFF ALSO INFLUENCED BY PREWEEKEND POSITIONING AND THE US DOLLAR'S WEAKNESS IN MADRID EQUITIES FELL DRAGGED DOWN BY A LARGERTHANEXPECTED RISE IN SPAIN'S CONSUMER PRICE INDEX FOR JANUARY THOUGH PRICES CAME UP FROM TROUGHS AFTER THE US PRODUCERPRICE REPORT AND WALL STREET'S EARLY RISE IN STOCKHOLM PRICES DROPPED SHARPLY AND BROADLY LED DOWN BY OVERBLOWN EXPECTATIONS ABOUT THE TELECOMMUNICATIONS SECTOR A TENDENCY TOWARD HIGHER SWEDISH LENDING RATES AND POOR PERFORMANCES ON OTHER STOCK EXCHANGES IN ZURICH SHARES RECOUPED SOME OF THE STEEP EARLY LOSSES THAT HAD PUSHED THE MARKET DOWN 2 BUT STILL FINISHED LOWER REBOUNDS OCCURRED AFTER THE RELEASE OF THE US DATA LURING BARGAIN HUNTERS INTO THE MARKET WHICH LAST WEEK DROPPED A TOTAL OF ABOUT 5 IN BRUSSELS THE MARKET ENDED MAINLY LOWER THOUGH A LATE SURGE LEFT SOME STOCKS HIGHER IN SYDNEY STOCKS ROSE DESPITE SOME PROFITTAKING AND THE MARKET ENDED THE WEEK WITH SMALL GAINS THOUGH INVESTORS WERE NERVOUS BECAUSE OF A DECLINE OF FOREIGN INVESTORS BUYING POSITIONS AND SPECULATION THAT US STOCKS MAY FALL THIS WEEK IN MANILA PRICES EDGED HIGHER IN LIGHT VOLUME BOOSTED BY LOCAL RETAIL BUYING AMID A CONTINUING TECHNICAL REBOUND FOLLOWING LAST MONDAY'S PLUNGE IN WELLINGTON SHARES FINISHED LOWER IN QUIET TRADING REFLECTING WEAKNESS IN SOME OVERSEAS MARKETS IN BANGKOK EQUITIES ROSE SLIGHTLY IN THE LOWEST VOLUME THIS YEAR OWING TO BEARISH SENTIMENT WITH MOST PLAYERS ON THE SIDELINES BECAUSE OF THE CHINESE NEW YEAR HOLIDAY WHICH CLOSED BOURSES IN HONG KONG SINGAPORE KUALA LUMPUR SEOUL AND TAIPEI 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 9402140008 940214 INTERNATIONAL ON PHONE PROJECT SOUTH KOREA YIELDS TO THE CONGLOMERATES IT VOWED TO TAME BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA WHEN KIM YOUNG SAM CAMPAIGNED FOR PRESIDENT IN LATE 1992 HE GOT SOME OF HIS BIGGEST OVATIONS BY VOWING TO TAME CHAEBOLS THE HUGE CONGLOMERATES THAT DOMINATE SOUTH KOREA'S ECONOMY A YEAR AFTER PRESIDENT KIM'S INAUGURATION HIS CAMPAIGN RHETORIC HAS SLAMMED INTO THE REALITY OF KOREA'S INDUSTRIAL CULTURE A CAMPAIGN AIMED AT BREAKING UP THE MOSTLY FAMILYOWNED CHAEBOLS HAS ALL BUT EVAPORATED AND BIG BUSINESS NOW APPEARS STRONGER THAN EVER AS IT PREPARES TO MONOPOLIZE A 12YEAR 50 BILLION PROGRAM TO UPGRADE TELECOMMUNICATIONS SERVICES NOTHING HAS CHANGED SAYS THE CHAIRMAN OF A MIDSIZE CONGLOMERATE THE ADMINISTRATION HAD A CHANCE TO REFORM THE CHAEBOLS BUT THE WEAK ECONOMY FORCED IT TO BACK OFF MOST ECONOMISTS AGREE ON THE NEED TO RESTRAIN THE CHAEBOLS WHICH SPEARHEADED KOREA'S ECONOMIC DEVELOPMENT BUT NOW ARE CONSIDERED TOO BIG AND CLUMSY TO COMPETE IN MATURE EXPORT MARKETS THEIR HABIT OF USING THEIR SUCCESSFUL AFFILIATES TO SUBSIDIZE THEIR MONEYLOSING UNITS ALSO MAKES IT HARD FOR SMALL COMPETITORS TO BREAK INTO THE MARKET INDUSTRIALISTS ARE QUIETLY SCOFFING AT A GOVERNMENT PLAN UNVEILED LAST MONTH OFFERING INCENTIVES TO ENCOURAGE THE CHAEBOLS TO FOCUS ON TWO OR THREE CORE FIELDS A SIMILAR PROGRAM INTRODUCED IN 1991 FAILED WE WILL CONTINUE TO FOCUS ON OUR MAIN BUSINESSES THE CHAIRMAN OF ONE OF KOREA'S LARGEST CHAEBOLS SAID RECENTLY OVER LUNCH AT SEOUL'S TONY METROPOLITAN CLUB BUT WE HAVE NO INTENTION OF SELLING OFF OUR OTHER BUSINESSES RATHER THAN REGROUP THE ADMINISTRATION APPEARS TO BE ROLLING OVER IN DECEMBER PRESIDENT KIM ASKED THE FEDERATION OF KOREAN INDUSTRIES AN ASSOCIATION OF CHAEBOLS TO CHOOSE A SINGLE CONSORTIUM TO BUILD THE COUNTRY'S SECOND CELLULARPHONE NETWORK THE GOVERNMENT'S DECISION TO WASH ITS HANDS OF THE MATTER IS SO IT CAN AVOID THE MISTAKES OF A PREVIOUS TENDER FOR THE SAME PROJECT IN LATE 1992 THE GOVERNMENT AWARDED THE CONTRACT TO A CONSORTIUM LED BY SUNKYONG GROUP BUT WITHDREW IT AMID CHARGES OF FAVORITISM THE GROUP'S CHAIRMAN CHEY JUNG HYON IS THE FATHER OF EXPRESIDENT ROH TAE WOO'S SONINLAW BUT LEAVING THE DECISION UP TO THE CHAEBOL FEDERATION BOTHERS SOME BIDDERS BECAUSE SO MUCH IS AT STAKE THE SYSTEM WILL BE PART OF A MOBILETELECOM BUSINESS EXPECTED TO PRODUCE AROUND 6 BILLION OF REVENUE ANNUALLY BY 2000 KOREA MOBILE TELECOM CO SERVES THE COUNTRY'S EXISTING MOBILEPHONE USERS WHICH NUMBER ABOUT 400000 THE NATION'S TOTAL NUMBER OF USERS IS EXPECTED TO GROW TO FOUR MILLION WITHIN THE NEXT SIX YEARS THREE FOREIGN FIRMS GTE CORP OF THE US HONG KONG'S HUTCHISON TELECOMMUNICATIONS LTD AND BRITAIN'S VODAPHONE PLC WERE ALL PART OF THE SUNKYONGLED GROUP THEY HAVE WAITED A YEAR FOR THE SECOND TENDER TO TAKE SHAPE ALONG WITH A COVEY OF OTHER FOREIGN COMPANIES INCLUDING SOUTHWESTERN BELL CORP BELL ATLANTIC CORP AND NYNEX CORP ALL OF THE US THE FEDERATION IS EXPECTED TO NAME THE LEADER OF THE MOBILEPHONE CONSORTIUM THIS WEEK AFTER REVIEWING TENDERS LATER THIS MONTH AFTER CONSULTING WITH THE WINNER IT WILL DECIDE WHICH COMPANIES WILL ROUND OUT THE GROUP PEOPLE CLOSE TO THE NEGOTIATIONS SAY THE BIDDING HAS SET OFF A FEEDING FRENZY AMONG THE COUNTRY'S TOP BUSINESS GROUPS THE LACK OF TRANSPARENCY IN THIS THING IS REMARKABLE SAYS A WESTERN DIPLOMAT WHO IS REPRESENTING SOME FOREIGN COMPANIES IN THE NEGOTIATIONS THE CHAEBOLS ARE ALL CUTTING BACKROOM DEALS SO THAT EVERYBODY'S HAPPY IRONICALLY THE FEDERATION OF KOREAN INDUSTRIES IS HEADED BY SUNKYONG'S MR CHEY LATE LAST MONTH SUNKYONG SAID IT WAS PULLING OUT OF THE CELLULARPHONE TENDER A WEEK LATER IT EMERGED WITH A 23 STAKE IN KOREA MOBILE TELECOM ACQUIRED THROUGH A GOVERNMENT AUCTION OF 80 OF THE COMPANY'S SHARES SIMILARLY THE TONGYANG GROUP ABANDONED ITS BID TO LEAD THE CELLULAR CONSORTIUM AFTER SNATCHING A 10 SHARE OF DAECOM KOREA'S NO 2 CARRIER OF INTERNATIONAL TELEPHONE AND DATA TRAFFIC FOLLOWING A GOVERNMENT AUCTION OF DAECOM SHARES LATE LAST YEAR SUNKYONG'S FOREIGN PARTNERS THREATENED TO TAKE LEGAL ACTION IN RESPONSE TO THE CHAEBOL'S DECISION TO BOLT THE MOBILEPHONE TENDER BUT HAVE SINCE FALLEN SILENT SOME OBSERVERS SUSPECT THEY HAVE BEEN MOLLIFIED WITH PROMISES OF A STAKE IN FUTURE TELECOMMUNICATIONS PROJECTS OR ARE SIMPLY HOLDING OUT FOR A PIECE OF THE CELLULAR CONSORTIUM GTE STAMFORD CONN IS DEEPLY CONCERNED ABOUT THE PROCEEDINGS OF THE TENDER SAID ANTHONY J KNIGHT VICE PRESIDENT OF THE INTERNATIONALBUSINESS DIVISION HE SAID GTE HAS STUDIED ITS LEGAL POSITION IN DEPTH AND WILL PROTECT ITS INTERESTS AND THE INTEREST OF ITS SHAREHOLDERS BUT HE WOULDN'T SAY IF THE COMPANY PLANS TO TAKE LEGAL ACTION AGAINST SUNKYONG ACCORDING TO TERMS OF THE SECOND TENDER 20 OF THE EQUITY IN THE NEW CONSORTIUM CAN GO TO FOREIGN COMPANIES THAT IS DOWN FROM THE INITIAL TENDER'S 33 RATIO WHICH HAS IRKED US TRADE OFFICIALS DURING BILATERAL TRADE TALKS IN WASHINGTON EARLIER THIS MONTH US NEGOTIATORS TRIED IN VAIN TO HAVE THE FOREIGNEQUITY PORTION RETURNED TO ITS ORIGINAL LEVEL WITH SUNKYONG AND TONGYANG APPARENTLY OUT OF THE RUNNING IN THE MOBILEPHONE BID A COMPANY NAMED KOLON GROUP IS NOW THE PRIME CANDIDATE TO LEAD THE CONSORTIUM POHANG IRON & STEEL CO KOREA'S LEADING STEEL MANUFACTURER HAD EXPRESSED AN INTEREST IN RUNNING THE GROUP BUT WILL CONTENT ITSELF WITH AN EXCLUSIVE CONTRACT TO PROVIDE FIBEROPTIC CABLE SYSTEMS PEOPLE CLOSE TO THE BIDDING SAY 9402140007 940214 REVIEW & OUTLOOK EDITORIAL DETHRONE THE TEXAS EARLE TEXANS ARE STILL SORTING OUT THE IMPLICATIONS OF SENATOR KAY BAILEY HUTCHISON'S SUDDEN ACQUITTAL ON ETHICS CHARGES FRIDAY THE JURY RETURNED A DIRECTED VERDICT OF NOT GUILTY AFTER TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE REFUSED TO PROCEED WITH THE TRIAL THE JUDGE HAD REFUSED TO ASSURE THE PROSECUTOR THAT HIS EVIDENCE WOULD BE ADMISSIBLE POLITICAL PUNDITS SAY THE COLLAPSE OF MR EARLE'S DUBIOUS PROSECUTION SPELLS TROUBLE FOR HIM AND HIS LONGTIME ALLY GOVERNOR ANN RICHARDS GOV RICHARDS FACES QUESTIONS ABOUT HER OFFICE'S SHREDDING OF TELEPHONE RECORDS WE CAN THINK OF ONE IMPLICATION OF THE HUTCHISON ACQUITTAL RONNIE EARLE SHOULD RESIGN HIS SELECTIVE PROSECUTIONS OF POLITICAL FIGURES HAVE POISONED THAT STATE'S GOVERNMENT LONG ENOUGH IN FACT TEXAS OUGHT TO DISMANTLE ITS PECULIAR SYSTEM UNDER WHICH THE ELECTED DISTRICT ATTORNEY FOR TRAVIS COUNTY WHICH CONTAINS THE STATE CAPITOL OF AUSTIN OVERSEES THE ETHICS OF THE ENTIRE STATE GOVERNMENT BY TEXAS STANDARDS AUSTIN IS SO LIBERAL THAT THIS ARRANGEMENT IS ROUGHLY EQUIVALENT TO ALLOWING THE VOTERS OF RADICAL BERKELEY TO ELECT THE PROSECUTOR IN CHARGE OF POLICING ALL CALIFORNIA'S OFFICEHOLDERS THE INCENTIVE FOR STACKING TEXAS JUSTICE IS JUST TOO STRONG IN A SENSE THE FLIMSY HUTCHISON PROSECUTION SO WIDELY PUBLICIZED WAS BENEATH THE IMAGE MODERN TEXANS ARE TRYING TO PROJECT OF THE STATE TEXAS HAS BECOME A FIRSTCLASS STATE IN DIVERSIFIED BUSINESSES AND A GATEWAY TO MEXICO THERE ARE EVEN STIRRINGS LATELY OF CLEANING UP THE STATE'S EGREGIOUS TORT LIABILITY SYSTEM SENDING THE EARLE ERA PACKING WOULD BE AN IMPORTANT FIRST STEP TOWARD DEPOLITICIZING TEXAS JUSTICE 9402140006 940214 DIVIDEND NEWS GALVESTONHOUSTON CO GALVESTONHOUSTON CO HOUSTON SAID ITS BOARD APPROVED A SPECIAL DIVIDEND OF SHARES OF ITS BETTIS CORP SUBSIDIARY SPINNING OFF THAT UNIT TO SHAREHOLDERS UNDER THE PLAN GALVESTONHOUSTON STOCKHOLDERS WILL RECEIVE ONE SHARE OF BETTIS FOR EVERY TWO COMMON SHARES OF GALVESTONHOUSTON THEY OWN GALVESTONHOUSTON MAKES AND SELLS CONSTRUCTION AND MINING PRODUCTS BETTIS MAKES AND SELLS VALVE ACTUATORS AS PART OF THE PLAN WHICH HINGES ON RECEIVING A FAVORABLE TAX OPINION AND IS SUBJECT TO REGULATORY APPROVAL GALVESTONHOUSTON SAID IT WON'T CONTINUE ITS ONECENT DIVIDEND 9402140005 940214 GLOBAL VIEW EUROPE'S GLOOMIER VIEW OF THE WELFARE STATE BY GEORGE MELLOAN GERMANY HAS JUST LEARNED THAT MORE THAN FOUR MILLION OF ITS WORKERS ARE UNEMPLOYED A POSTWAR RECORD THE INDUSTRIAL POWERHOUSE OF EUROPE IS IN TROUBLE AND ITS INDUSTRIES ARE TRYING TO LIGHTEN THE SHIP THE JANUARY STATISTICS WERE A SHOCK TO CHANCELLOR HELMUT KOHL'S GOVERNMENT ECONOMICS MINISTER GUENTER REXRODT SAID THAT HIGH UNEMPLOYMENT THREATENS NOT ONLY OUR ECONOMIC ORDER BUT ALSO THE FOUNDATIONS OF OUR SOCIETY THAT COULD BE AN EXAGGERATION THE US ALSO SUFFERED HEAVY LAYOFFS IN ITS RECESSION WHICH BEGAN BEFORE GERMANY'S WITH RECOVERY AMERICAN INDUSTRY IS LEANER AND MEANER AND SHOWING STRONG PRODUCTIVITY GAINS GERMANY MAY DO THE SAME WHEN RECESSION HAS RUN ITS COURSE BUT THEN IT MAY NOT IF IT DOESN'T IT WILL BE BECAUSE THE GERMAN ECONOMY CARRIES A LOT MORE BAGGAGE THAN THE AMERICAN ECONOMY ITS TOTAL TAX BURDEN ALTHOUGH BY NO MEANS THE HIGHEST IN EUROPE IS SOME 25 ABOVE THAT OF THE US RELATIVE TO ITS SIZE THAT'S BECAUSE GERMANY IS A MORE ADVANCED WELFARE STATE IT HASN'T BEEN SO LONG AGO THAT MANY GERMANS AND OTHER EUROPEANS WOULD REGARD THAT OBSERVATION AS PRAISE THEY WERE HAPPY WITH AND EVEN PROUD OF WELFARE STATE INSTITUTIONS ON A CONTINENT THAT HAS HAD MORE THAN ITS SHARE OF CIVIL AND POLITICAL STRIFE IN THIS CENTURY IT WAS OFTEN ASSUMED THAT THE WELFARE STATE CONTRIBUTED TO STABILITY BY GIVING THE TOTAL POPULATION RICH AND POOR ALIKE A SENSE OF SOCIAL JUSTICE THE PRICE WAS ADMITTEDLY HIGH BUT EUROPEANS FOR GOOD HISTORICAL REASONS PLACED A HIGH VALUE ON SOCIAL AND POLITICAL ORDER AND WERE WILLING TO PAY FOR A SYSTEM THAT PROMISED TO DELIVER THAT THE WIDESPREAD PERCEPTION THAT THE WELFARE STATE DELIVERED FREE GOODS ALSO CONTRIBUTED HEAVILY TO ITS POLITICAL APPEAL TO BE SURE THERE WAS CONCERN IN THE 1970S AND 1980S ABOUT EUROSCLEROSIS BUT IN THE LATE 1980S AND EARLY 1990S EUROPE WAS REAPING THE FRUITS OF THE EUROPEAN COMMUNITY'S DESTRUCTION OF TRADE BARRIERS AND ITS PROSPECTS LOOKED BRIGHT MANY GERMANS IN PARTICULAR FELT THAT THEY INHABITED THE BEST OF ALL POSSIBLE WORLDS ONE IN WHICH THEY ENJOYED GOOD PAY LONG VACATIONS A FAIRLY EFFICIENT NATIONAL HEALTH CARE SYSTEM AND MANY SOCIAL WELFARE BENEFITS NOW AFTER MORE THAN A YEAR OF RENEWED EUROSCLEROSIS ALL THAT HAS CHANGED EUROPEAN GOVERNMENTS FACED WITH MOUNTING BUDGET DEFICITS DEBT FINANCING PROBLEMS AND POPULAR RESISTANCE TO FURTHER TAX INCREASES ARE FINALLY HAVING TO PARE AWAY WELFARE STATE BENEFITS GERMANS WILL GET SHORTER HOLIDAYS THE DUTCH LESS GENEROUS DISABILITY PAY THE BRITISH HIGHER DRUG COSTS AND ALL GOVERNMENTS WITH 11 OF THE EUROPEAN UNION WORK FORCE UNEMPLOYED ARE CONTEMPLATING CUTBACKS IN UNEMPLOYMENT BENEFITS THIS IS NOT GOING DOWN WELL WITH ELECTORATES THERE ARE STRIKES IN GERMANY BELGIUM SPAIN AND PORTUGAL AND A POLITICAL UPHEAVAL IN ITALY FRENCH FARMERS AND FISHERMEN EXPRESS THEIR DISCONTENT IN DRAMATIC WAYS BY DUMPING MANURE ON THE STEPS OF GOVERNMENT BUILDINGS OR SOAKING IMPORTED FISH WITH DIESEL OIL IN OTHER WORDS THE POLITICS OF THE WELFARE STATE HAVE REVERSED THEMSELVES WITH SOCIAL PROGRAMS NOW A POLITICAL LIABILITY RATHER THAN A WAY TO WIN VOTES THIS TIME THE POLITICAL FALLOUT IS BROADER THAN IN THE PAST EUROPE'S SOCIALISTS LOST THEIR WAY A LONG TIME AGO THEY FAILED TO SEE SOON ENOUGH THAT THE NATIONALIZATION OF INDUSTRY PART OF THE SOCIALIST CREDO FOR DECADES AFTER WORLD WAR II WOULD TURN ON THEM WITH DESTRUCTIVE FORCE THIS REALIZATION STRUCK WITH SPECIAL IMPACT IN BRITAIN WHERE THE LABOUR PARTY IN THE 1970S WAS SHOCKED TO LEARN THAT HEAVILY FEATHERBEDDED STATE INDUSTRIES SUCH AS BRITISH STEEL BRITISH MOTORS AND BRITISH RAIL ONCE POLITICALLY USEFUL FOR DISTRIBUTING PATRONAGE HAD TURNED INTO BUDGET EATING MONSTERS LABOUR WENT DOWN TO DEFEAT IN 1979 MAGGIE THATCHER BEGAN SELLING OFF THESE HUGE LIABILITIES AND LABOUR HAS NEVER REGAINED ITS FORMER POWER TODAY ALL OF EUROPE INCLUDING THAT GREAT SOCIALIST LABORATORY WITH ITS HEADQUARTERS IN MOSCOW IS BEING PRIVATIZED STATE INDUSTRIAL PATRONAGE HAS DESTROYED BOTH THE CHRISTIAN DEMOCRATIC AND SOCIALIST PARTIES IN ITALY AND BADLY DAMAGED SOCIALISTS IN FRANCE NO ONE DARES UTTER THAT OLD LINE ABOUT HOW UTOPIA ARRIVES WHEN THE STATE CONTROLS THE MEANS OF PRODUCTION THE WELFARE STATE IS DIFFERENT HOWEVER IT HAS NOT BEEN THE EXCLUSIVE PROPERTY OF SOCIALISTS BUT HAS BEEN DEFENDED AS WELL BY THE LIKES OF HELMUT KOHL AND JOHN MAJOR EVERYBODY TIPTOES AROUND THE ISSUE OF WHETHER IT FINALLY MAY BECOME NECESSARY TO TAKE AN AX RATHER THAN MERELY A PENKNIFE TO THE COSTS OF THIS KIND OF SYSTEM SWEDISH ECONOMIST ASSAR LINDBECK OFFERED A BRILLIANT ANALYSIS OF THE WELFARE STATE'S PROBLEMS IN A PAPER DELIVERED LAST OCTOBER AS PART OF A LECTURE SERIES SPONSORED BY DE NEDERLANDSCHE BANK IN AMSTERDAM HE CONSTRUCTED A BALANCE SHEET OF ACHIEVEMENTS VS COSTS HIS CONCLUSION WAS THAT YES INDEED WELFARE STATES OF EUROPE ARE VERY MUCH IN NEED OF REFORM THE FUNDAMENTAL PROBLEM OF THE WELFARE STATE THAT HE CITED WILL COME AS NO SURPRISE TO ITS CRITICS OVER THE YEARS WHEN IT GIVES TOO MUCH TO THOSE WHO ARE IDLE AND TAKES AWAY TOO MUCH FROM THOSE WHO ARE NOT IT DESTROYS THE INCENTIVES OF BOTH TO WORK AND PRODUCE THEOLOGIAN MICHAEL NOVAK DESCRIBES THIS AS THE MORAL HAZARD OF THE WELFARE STATE ITS TENDENCY TO GENERATE SLOTH AND EVEN DISHONESTY AS SEEKERS OF BENEFITS BEGIN TO CHEAT THE RULES AND THE MOST HEAVILY BURDENED TAXPAYERS BEGIN TO CHEAT THE TAX COLLECTOR THERE ARE OTHER SERIOUS PROBLEMS LABOR MOBILITY IS REDUCED BECAUSE LAIDOFF WORKERS PREFER TO DRAW UNEMPLOYMENT COMPENSATION RATHER THAN SEEK WORK AND OFTEN FEEL TIED BY THE SOCIAL SYSTEM TO THEIR JOBS AND COMMUNITIES FAMILY STRUCTURES ARE DESTROYED AS THE STATE TAKES OVER FAMILY RESPONSIBILITIES FOR ALL THESE REASONS EUROPEAN ECONOMIES ARE LESS ADAPTABLE LESS ABLE TO WEATHER AND PULL OUT OF RECESSIVE BUSINESS CYCLES LONGER TERM PROBLEMS SUCH AS THE THE AGING WORK FORCE AND THE SOCIAL PROBLEMS GENERATED BY IMMIGRATION ARE AGGRAVATED AS SOCIAL BENEFITS DIMINISH PRODUCTIVITY AND AT THE SAME TIME ATTRACT IMMIGRANTS OF COURSE YOUNG IMMIGRANT LABORERS HELP SUPPORT RETIREES BUT THEY NOW HAVE ARRIVED IN SUCH NUMBERS THAT THEY ARE NO LONGER WELCOME IN MUCH OF EUROPE WHILE EUROPE'S POLITICIANS ARE TRYING TO GET OUT OF THIS WEB WITH THEIR SKINS BILL CLINTON IS INVITING HIS FELLOW DEMOCRATS TO GET FURTHER IN CONGRESSIONAL DEMOCRATS SHOULD ASK GUENTER REXRODT IF HE IS ENJOYING POLITICAL LIFE THESE DAYS 9402140004 940214 LOMAK OIL GAS RESERVES GROW FORT WORTH TEXAS LOMAK PETROLEUM INC SAID ITS PROVEN RESERVES INCREASED 245 TO 17 MILLION BARRELS OF OIL EQUIVALENT ON DEC 31 1993 COMPARED WITH A YEAREARLIER FIVE MILLION BARRELS THE COMPANY SAID IT HAD RESERVES OF 7456 BILLION CUBIC FEET OF NATURAL GAS COMPARED WITH YEAREARLIER RESERVES OF 1761 BILLION CUBIC FEET LOMAK PETROLEUM ALSO REPORTED RESERVES OF 45 MILLION BARRELS OF OIL AN INCREASE OF 129 FROM A YEAREARLIER TWO MILLION BARRELS 9402140003 940214 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY YEAR IN WHICH TONYA HARDING LAST LANDED A TRIPLE AXEL IN COMPETITION 1991 NUMBER OF TELEVISION MOVIES EXPECTED TO DEAL WITH THE FIGURESKATING SCANDAL STORY 3 NUMBER OF BOOKS BEING RELEASED IN FEBRUARY ON THE SCANDAL 2 NUMBER OF TIMES HER MOTHER HAS MARRIED 6 NUMBER OF HOURS HARDING SLEPT UPON ARRIVAL AT THE ALBERTVILLE GAMES 16 SHE CLAIMS NEVER TO SUFFER JET LAG 9402140002 940214 COMMODITIES SUGAR APPEARS READY TO SWEETEN TRADERS' POT AS DEMAND EXCEEDS SUPPLIES UNTIL LATER IN YEAR BY NEIL BEHRMANN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SUGAR APPEARS POISED TO SWEETEN TRADERS' PROFITS PRICES SHOULD RISE IN COMING MONTHS SAYS CHRISTOPHER PACK HEAD OF RESEARCH AT C CZARNIKOW SUGAR FUTURES LTD A LONDON SUGAR MERCHANT DEMAND FOR THE SWEETENER CURRENTLY EXCEEDS SUPPLIES HE SAYS AND UNTIL SOUTHERN HEMISPHERE NATIONS SUCH AS AUSTRALIA AND SOUTH AFRICA SELL LARGER CROPS LATER IN THE YEAR THE MARKET WILL BE SUPPORTED BY THE SUPPLY SHORTAGE ADDS JUDITH GANES SENIOR COMMODITY ANALYST AT MERRILL LYNCH WORLD SUGAR STOCKS ARE SET TO DROP TOWARD HISTORICALLY LOW LEVELS EQUIVALANT TO 28 OF CONSUMPTION AT THOSE LEVELS SHE SAYS THE MARKET TIGHTENS AND SUGAR FUTURES CONTRACTS TRADED IN NEW YORK AND LONDON TEND TO BREAK INTO HIGHER PRICE RANGES SUGAR FUTURES HAVE TRADED IN A RANGE OF 9 CENTS TO 11 CENTS A POUND SINCE LAST MAY MS GANES SAYS SHE ESTIMATES THAT THEY COULD RISE TO NEARLY 16 CENTS IN 1995 PARTICULARLY IF INVENTORIES REMAIN INSUFFICIENT TO MEET IMPORTERS' REQUIREMENTS WORLD SUGAR DEMAND OF ABOUT 114 MILLION METRIC TONS COULD EXCEED PRODUCTION THIS YEAR BY 2 MILLION TO 3 MILLION TONS SAYS MR PACK OF C CZARNIKOW MOST OF THE SUGAR PRODUCED IS CONSUMED BY ITS PRODUCERS HE SAYS LEAVING ONLY AROUND 26 MILLION TONS TRADED ON THE INTERNATIONAL MARKET A RELATIVELY SMALL DIFFERENCE BETWEEN INTERNATIONAL SUPPLY AND DEMAND CAN THEREFORE HAVE A STRONG IMPACT ON INTERNATIONAL TRADE AND WORLD PRICES MR PACK SAYS A MAJOR INFLUENCE ON THE MARKET THIS YEAR WILL BE IMPORT REQUIREMENTS OF INDIA AND CHINA BOTH NATIONS ARE HUGE CONSUMERS AND PRODUCERS OF SUGAR MR PACK SAYS SINCE CROPS WILL BE FAR LOWER THAN EXPECTATIONS THE MARKET WILL CLOSELY MONITOR THEIR IMPORTS MEANWHILE CONTINUING CONCERNS ABOUT THE POTENTIALLY SMALL SIZE OF THE CUBAN CROP AND TO A LESSER EXTENT THE OUTPUT OF THAILAND AND BRAZIL ARE ALSO BOLSTERING PRICES MR PACK SAYS ANALYSTS HAVE DOUBTS ABOUT OFFICIAL CUBAN STATISTICS WHICH STATE THE COUNTRY'S PRODUCTION IS AS HIGH AS 45 MILLION TONS THEY BELIEVE THAT SHORTAGES OF FUEL FERTILIZER AND SPARE PARTS FOR FARMING AND PROCESSING EQUIPMENT MEAN THAT THE HARVEST WILL BE MUCH LOWER THAN THAT MEANWHILE THE RUSSIAN INTERFAX NEWS AGENCY QUOTED OLEG DAVYDOV RUSSIA'S MINISTER OF FOREIGN ECONOMIC RELATIONS AS SAYING THAT RUSSIA WILL SELL CUBA 4 MILLION TONS OF CRUDE OIL THIS YEAR IN EXCHANGE FOR 25 MILLION TONS OF SUGAR THE MARKET EXPECTED THAT LESS CUBAN SUGAR WOULD BE BARTERED FOR RUSSIAN OIL ANALYSTS SAY THAT IMPLIES THERE WILL BE EVEN LESS CUBAN SUGAR AVAILABLE FOR PURCHASE BY THE INTERNATIONAL MARKET SUGAR HAS PROVED TO BE AN EXTRAORDINARILY VOLATILE COMMODITY IN THE PAST PLUNGING TO 25 CENTS A POUND IN 1985 FROM 43 CENTS IN 1980 AND THEN RISING SIXFOLD BY THE END OF THE DECADE ANY SUGAR BULL MARKET COULD BE LIMITED TO 20 CENTS THIS TIME ROUND ALTHOUGH BUYING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY POTENTIALLY COULD ADD MOMENTUM NOT PRESENT IN THE PAST TWO FACTORS POTENTIALLY LIMITING THE UPSIDE POTENTIAL OF SUGAR PRICES ARE THAT MORE SUGAR SUBSTITUTES ARE AVAILABLE NOW AND CONSUMERS ARE MORE SENSITIVE TO RISING PRICES ANALYSTS SAY THE MOST DIFFICULT SUGAR SUPPLYDEMAND VARIABLE IS WORLD CONSUMPTION SAYS FARIDEH BROMFIELD HEAD OF SUGAR RESEARCH AT E D & F MAN SUGAR LTD AS SOON AS PRICES RISE DEMAND WILL FALL QUICKLY AND THE MARKET BALANCE WILL SHIFT TO SURPLUS FROM DEFICIT SHE SAYS IT IS MAINLY FOR THIS REASON THAT SUGAR PRICES FAILED TO MATCH OPTIMISTIC EXPECTATIONS LAST YEAR AND FAILED TO BREAK OUT OF A NARROW TRADING RANGE MS BROMFIELD SAYS ILLUSTRATING THE POTENTIAL VOLATILITY OF THE MARKET HOWEVER WAS THE FACT THAT FUTURES PRICES IN NEW YORK JUMPED 5 IN VERY LITTLE TIME THE WEEK BEFORE LAST FOR MONTHS TRADERS HAD EXPECTED RUSSIA A MAJOR IMPORTER TO REDUCE SUGAR PURCHASES BECAUSE OF THE NATION'S ECONOMIC CRISIS AND A VIGOROUS IMPORT TAX THE COUNTRY WAS EXPECTED TO IMPOSE ON SUGAR WHEN RUMORS SPREAD THAT THE TAX WOULD BE LOWER THAN EXPECTED SUGAR PRICES SOARED DEALERS SAY LONDON DEALERS WERE SURPRISED THAT RUMORS OF SMALLER IMPORT RESTRICTIONS AFFECTED INTERNATIONAL PRICES ACCORDING TO RUSSIAN OFFICIALS RUSSIAN SUGAR IMPORTS FELL 30 LAST YEAR TO 26 MILLION TONS MOREOVER LARGE CUBAN EXPORTS TO RUSSIA ARE LIKELY TO REDUCE RUSSIA'S ORDERS FROM WESTERN FARMERS THEY SAY CONSIDERING THE COLLAPSE OF THE RUBLE THE HYPERINFLATION AND RECESSION ANY IMPORT TAX SHOULD LIMIT RUSSIAN PURCHASES A LONDON DEALER SAYS 9402140001 940214 LAW LEGAL BEAT OUTCOME UNCERTAIN FOR COMPANIES WITH CLAIMS RELATING TO GULF WAR BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL ALMOST THREE YEARS AFTER THE PERSIAN GULF WAR THE BATTLE IS JUST BEGINNING FOR CORPORATIONS TRYING TO RECOUP BILLIONS OF DOLLARS THEY LOST IN IRAQ AND KUWAIT THE OUTCOME IS FAR FROM CERTAIN THE US STATE DEPARTMENT IS IN THE FINAL STAGES OF COLLECTING AND SORTING THROUGH CLAIMS FROM AMERICAN COMPANIES THAT LOST PROPERTY OR BUSINESS DURING THE WAR BY APRIL 1 THESE CLAIMS MUST BE SENT TO THE UNITED NATIONS COMPENSATION COMMISSION IN GENEVA WHICH IS CHARGED WITH ALLOCATING PAYMENTS FROM IRAQ TO COMPANIES AND INDIVIDUALS WHO SUSTAINED LOSSES IRAQ IS SUPPOSED TO CONTRIBUTE 30 OF ITS OIL REVENUE TO VICTIMS OF THE WAR BUT SO FAR THE QUESTION OF WHEN IRAQ WILL START EXPORTING OIL IS MIRED IN NEGOTIATIONS OVER ENDING THE TRADE EMBARGO AND OVER OTHER POLITICAL ISSUES REMAINING FROM THE CONFLICT THE FIRST QUESTION THAT OCCURS TO EVERYBODY IS WHERE IS THE MONEY GOING TO COME FROM SAYS ARTHUR ROVINE A NEW YORK LAWYER FOR PEOPLE FILING CLAIMS IT'S CLEAR WHERE IT'S SUPPOSED TO COME FROM BUT WHEN IT WILL COME IS ANOTHER MATTER IT'S GOING TO BE A LONG TIME BEFORE COMPANIES GET THEIR MONEY HE ADDS CERTAINLY A GREAT DEAL OF MONEY IS AT STAKE SO FAR ABOUT 185 CLAIMS DEMANDING 16 BILLION HAVE BEEN FILED BY US COMPANIES ACCORDING TO A STATE DEPARTMENT OFFICIAL THE COMPENSATION COMMISSION IN GENEVA SAYS IT HAS RECEIVED 2352 CLAIMS FROM COMPANIES IN MORE THAN 30 OTHER COUNTRIES ASSERTING LOSSES OF SOME 8 BILLION MORE THAN 2000 MORE CORPORATE CLAIMS ARE EXPECTED BY THE DEADLINE THE DEMANDS FOR COMPENSATION ARE A HODGEPODGE ONE US BUSINESS PUT IN A CLAIM FOR JUST 112 THE KUWAITI NATIONAL OIL COMPANY PUT IN A 900 MILLION CLAIM SEEKING COMPENSATION FOR LOSSES AS A RESULT OF THE OILWELL FIRES SET BY THE RETREATING IRAQIS BUT CORPORATE CLAIMS WON'T EVEN BE CONSIDERED BY THE COMMISSIONERS FOR A YEAR UN OFFICIALS SAY THAT IS BECAUSE THE UN IS GIVING PRIORITY TO SEVERAL CATEGORIES OF INDIVIDUALS INCLUDING WORKERS WHO HAD TO LEAVE KUWAIT AND IRAQ ABRUPTLY WHEN THE FIGHTING BROKE OUT AMBASSADOR CARLOS ALZAMORA EXECUTIVE SECRETARY OF THE COMMISSION SAYS THE FIRST BATCH OF 1000 CLAIMS ON BEHALF OF PEOPLE BADLY INJURED OR KILLED IN THE FIGHTING WILL BE PAID OUT IN MAY THE 5 MILLION IN PAYMENTS WILL COME FROM CONTRIBUTIONS ALREADY MADE BY VARIOUS UN MEMBERS THE NEXT BATCH OF CLAIMS WILL BE PAID TO DEPARTEES AND INDIVIDUALS WITH LOSSES UNDER 100000 AMBASSADOR ALZAMORA SAID HE HOPES TO BE ABLE TO FUND PAYMENTS WITH FROZEN ASSETS FROM OIL REVENUE OWED TO IRAQ AS A RESULT OF DELIVERIES MADE IN THE MONTH BEFORE THE GULF WAR BEGAN BUT EVEN IF THE UN IS ABLE TO COLLECT THAT MONEY IT LIKELY ALL WILL BE DISTRIBUTED BY THE TIME THE COMMISSION STARTS PAYING CLAIMS TO CORPORATIONS THERE IS SOME GOOD NEWS FOR COMPANIES UN OFFICIALS ARE INTENT ON AVOIDING PROBLEMS FACED BY THE IRANIAN CLAIMS TRIBUNAL ESTABLISHED AFTER THE HOSTAGE CRISIS THAT IS STILL HEARING CLAIMS AFTER ALMOST 13 YEARS THE IRANIAN TRIBUNAL WAS HAMPERED IN PART BECAUSE IT WAS RUN AS AN ARBITRATION PANEL ANYONE COULD REQUEST A HEARING AND IRAN WAS ENTITLED TO RESPOND TO ALL ALLEGATIONS THE NEW COMPENSATION PANEL WILL ASSUME THAT IRAQ IS LIABLE FOR LOSSES AND WILL SIMPLY ASSESS DAMAGES HEARINGS CAN BE GRANTED AT THE DISCRETION OF THE COMMISSIONERS AND IRAQ WILL BE ALLOWED ONLY LIMITED OPPORTUNITIES TO RESPOND TO CLAIMS THOUGH SPECIFIC PROCEDURES FOR DEALING WITH CORPORATE CLAIMS HAVEN'T BEEN FULLY WORKED OUT THE COMPENSATION COMMISSION ALSO IS ATTEMPTING TO SETTLE INDIVIDUAL CLAIMS EXPEDITIOUSLY THE COMMISSION WHICH IS EXPECTED TO HAVE A 16 MILLION BUDGET IN 1994 IS USING COMPUTERIZED DATA BASES FOR EVALUATING SMALL CLAIMS MANY INDIVIDUALS WILL BE ENTITLED TO PREESTABLISHED AMOUNTS FOR EXAMPLE CERTAIN INDIVIDUAL DEPARTEES WILL GET 4000 SOME FAMILIES WILL GET 8000 BUT DESPITE SUCH EFFORTS COMPANIES AND THEIR LAWYERS ARE TAKING A WAITANDSEE ATTITUDE I HAVE NO REASON TO BE PESSIMISTIC BUT NONE TO BE OPTIMISTIC EITHER SAYS CHRISTOPHER THOMPSON GENERAL COUNSEL OF BROWN & ROOT INC IN HOUSTON THE COMPANY A UNIT OF HALLIBURTON CO DALLAS HAS A ROUGHLY 18 MILLION CLAIM STEMMING FROM AN OFFSHORE OILPLATFORM PROJECT IN IRAQ BUT IT STILL HAS AN IRANRELATED CLAIM PENDING A HEARING IS SET FOR OCTOBER IN THE HAGUE SOMETIMES THESE THINGS TAKE ON A LIFE OF THEIR OWN SAYS MR THOMPSON 9402140145 940124 BOBBITT A VERDICT THAT KILLS JUSTICE BY HEATHER S RICHARDSON MANY APPROVE OF FRIDAY'S DECISION BY A JURY THAT LORENA BOBBITT WAS NOT GUILTY OF DISMEMBERING HER HUSBAND THEY ARGUE THAT THE NEWS REPRESENTS A ROUGH KIND OF TIT FOR TAT JUSTICE YET THE BOBBITT JURY'S JUDGMENT THAT MRS BOBBITT HAD ACTED WHILE TEMPORARILY INSANE IS A DEEPLY PROBLEMATIC ONE THE VERDICT REFLECTS A WIDENING CULTURAL DIVIDE THAT IS SLOWLY DELEGITIMIZING ANY TRADITIONAL SENSE OF JUSTICE IN THIS COUNTRY BY CHOOSING TO FREE LORENA BOBBITT THE MANASSAS JURY SET A PRECEDENT THAT WILL REDEFINE AMERICAN NOTIONS OF ACCURACY THINK FOR A MOMENT ABOUT THE BOBBITT CASE AND ABOUT ANOTHER CASE THAT HAS BEEN IN THE NEWS LATELY THE MENENDEZ BROTHERS' TRIAL FOR MURDERING THEIR PARENTS ASSUME THAT IN FACT WHAT THE DEFENSE IN EACH CASE HAS ARGUED IS TRUE THAT LORENA BOBBITT WAS INDEED THE PATHETIC VICTIM OF PHYSICAL ABUSE HUMILIATION AND SEXUAL TORMENT THAT THE MENENDEZ BROTHERS WERE ABUSED BY THEIR PARENTS AND SO DESERVE FREEDOM SUCH ABUSE IS HEINOUS BUT WITH REGARD TO THE QUESTION OF GUILT THE RESOUNDING ANSWER IN THESE CASES STILL HAS TO BE SO WHAT THIS IS NOT A CALLOUS ANSWER OF COURSE WE SYMPATHIZE OF COURSE OTHER LEGAL AND SOCIAL STEPS EG LEAVING HOME SUING SEEKING COURT INJUNCTIONS GETTING A DIVORCE ARE EMINENTLY IMPORTANT THAT'S THE POINT OF A CIVIL SOCIETY THERE ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH EACH OTHER LORENA BOBBITT AND HER LAWYERS HOWEVER WENT A DIFFERENT PATH THREE PSYCHIATRISTS AND LEGAL EXPERTS TESTIFIED THAT HERS WAS NOT IRRESISTIBLE IMPULSE BUT AN IMPULSE THAT SHE DID NOT RESIST NEVERTHELESS MS BOBBITT'S SUPPORTERS FOUND ENOUGH MEMBERS OF THE LEGAL AND SOCIAL WORK ESTABLISHMENT TO BUILD A CASE THE ASSOCIATED PRESS HAS REPORTED THAT A DR SUSAN FIESTER WHO INTERVIEWED MRS BOBBITT FOR 13 HOURS DESCRIBED HER BEHAVIOR AT THE TIME OF THE VIOLENCE AS A BRIEF REACTIVE PSYCHOSIS THE JURY ENDED UP BUYING THAT ARGUMENT THE RESULT IS THAT THEY ALLOWED HER TO IMPINGE ON THE RIGHTS OF OTHERS MR BOBBITT AND SANCTIONED PERSONAL VIGILANTISM THE BOBBITT VERDICT DERIDES ALL OTHER SPOUSES MEN AND WOMEN WHO HAVE BEEN ABUSED AS SHE WAS AND WHO NONETHELESS WENT THROUGH THE TEDIUM AND HELL OF COURT ORDERS INSTEAD OF RESORTING TO MALICIOUS WOUNDING IT ALSO SENDS AN ENGRAVED INVITATION TO BYPASS SUCH PROCEDURE IN FUTURE GIVEN THAT SIGNAL IMAGINE WHAT A NOT GUILTY VERDICT FOR THE MENENDEZ BROTHERS COULD MEAN THEIR JUDGE STANLEY WEISBERG HAS BEEN FACED WITH A CASE THAT HAS BEEN CONVERTED FROM A TRIAL OF CONFESSED MURDERERS THE SONS TO THE TRIAL OF THE VICTIMS MR AND MRS MENENDEZ AND THEIR PARENTING SKILLS WHEN DEFENSE ATTORNEY JILL LANSING ASKED THAT A PSYCHIATRIC EVALUATION OF THE SONS' MOTHER THAT SHOWED SHE WAS DIAGNOSED AS A BORDERLINE SCHIZOID BE ENTERED INTO EVIDENCE THE JUDGE SAID THAT THE ISSUE HERE IS HOW SHE BEHAVED NOT HOW SHE WAS DIAGNOSED NEVERTHELESS ACCORDING TO THE LOS ANGELES DAILY NEWS A UNIVERSITY OF WASHINGTON SOCIAL WORK PROFESSOR TOLD THE JURY THAT THE KIND OF ABUSE THE MENENDEZ BROTHERS ALLEGE TO HAVE ENDURED EXPLAINS ADULT BEHAVIOR AMERICAN JURIES ARE BEING TOLD THAT THE INDIVIDUAL IS NOT RESPONSIBLE FOR HIS OWN ACTIONS PART OF THE PROBLEM IS A GENUINE AMERICAN CONFUSION OF COMPASSION A PERSONAL VIRTUE WITH JUSTICE WE FORGET THAT JUSTICE IS CONSIDERED THE FOREMOST POLITICAL VIRTUE FOR A REASON IT PROVIDES THE GLUE OF SOCIETY A SENSE OF JUSTICE IS WHAT PRECLUDES PEOPLE TAKING MATTERS INTO THEIR OWN HANDS WHEN THAT SENSE OF JUSTICE BREAKS DOWN AS IT DID IN THE BOBBITT TRIAL YOU INVITE SOCIAL CHAOS WHAT THE BOBBITT TRIAL TELLS AMERICANS IS THAT WHAT MATTERS IS NO LONGER WHAT YOU DID BUT HOW OTHERS SAY YOU MADE THEM FEEL AS LORENA BOBBITT'S ATTORNEY SAID WE ARE NOT DISPUTING WHERE IT HAPPENED HOW IT HAPPENED WHO DID IT THE NORMAL QUESTIONS OF GUILT OR INNOCENCE INSTEAD THE CASE PRESENTED BECOMES FEEL SORRY FOR HER THE JERK DESERVED IT SAME WITH THE MENENDEZ BROTHERS ROTTEN PARENTS POOR ABUSED ORPHANS HOW DID AMERICANS COME TO CONFUSE JUSTICE AND COMPASSION AT THE ROOT OF THE PROBLEM IS WHAT HAS BEEN CALLED THE CULTURE WAR THE TRADITIONAL VIEW SEES PEOPLE AS NEITHER GOOD NOR BAD BUT CAPABLE OF BEING EITHER IT THEREFORE LOOKS TO EITHER GOD OR NATURAL LAW AS THE ULTIMATE ARBITER OF WHAT IS MORAL THIS VIEW WAS THE BASIS FOR EXAMPLE OF THE NUREMBURG TRIALS SINCE MANMADE LAW SAID THE NAZIS HAD DONE NOTHING WRONG THE NEW SECULAR VIEW BY CONTRAST SEES PEOPLE AS BASICALLY GOOD IT CONCLUDES THAT WE EACH ARE OUR OWN ARBITERS OF RIGHT AND WRONG IN THIS VIEW EVIL IS UNDERSTOOD AS A BYPRODUCT OF SOME EXTERNAL FORCE POVERTY CHILD ABUSE GUNS OF WHICH MAN IS A VICTIM THIS IS A VIEW THAT EXCUSES VICTIMS LIKE LORENA BOBBITT IT IS ALSO A MINDSET THAT PUTS THE RIGHTS OF GROUPS OF VICTIMS BEFORE THOSE OF THE GENERAL INDIVIDUAL THUS A RADICAL FEMINIST ORGANIZATION REPORTEDLY HAD NO QUALMS ABOUT THREATENING TO DISMEMBER BOBBITTSTYLE 100 MEN AT RANDOM IF LORENA'S JURY HANDED IN A GUILTY VERDICT THE BRIGHT SIDE OF THE BOBBITT RESULT IS THAT THERE ARE 100 MEN WHO CAN SLEEP SOUNDLY NIGHTS OR CAN THEY WE ARE CREATING A SOCIETY WHERE ANY INTERACTION BETWEEN INDIVIDUALS IS FAST BECOMING AN OPENENDED LIABILITY WE HAVE FOR TOO LONG TRAVELED ON A JUVENILE ROAD OF ABANDONING RESPONSIBILITY OF HOLDING EVERYONE AND EVERYTHING ACCOUNTABLE BUT OURSELVES WE HAVE FORGOTTEN THAT RESPONSIBILITY IS CENTRAL TO A FREE SOCIETY WITHOUT SUCH UNDERSTANDING A FREE SOCIETY CANNOT BE FREE FOR LONG MS RICHARDSON IS A DIRECTOR OF THE COUNCIL ON CULTURE & COMMUNITY AND A FELLOW AT THE PROGRESS AND FREEDOM FOUNDATION SEE RELATED LETTERS LETTERS TO THE EDITOR OUR CIVIL JUSTICE SYSTEM IS A FARCE WSJ FEB 14 1994 9401240046 YY94 MM02 9402140142 940110 MANAGER'S JOURNAL THE HOTTEST THING IN SALES SINCE THE ELECTRIC FORK BY JACK FALVEY JOHN FELLOWS KNOWN AS MISTER RADIO IN THE STATE OF MAINE IS WITHOUT DOUBT ONE OF THE BEST RADIOTIME SALESMEN ANYWHERE I WORKED A DAY WITH HIM WHEN HE LED THE SALES TEAM AT WOKQ IN PORTSMOUTH NH WHICH IS RATED NO 1 IN ITS MARKET AREA ON ONE CALL AT A LAWNANDGARDEN SUPPLY STORE HIS PRESENTATION TO THE OWNER WAS INTERRUPTED BY A CUSTOMER HE WAITED THREE MINUTES CALLED OUT SEE YA OVER HIS SHOULDER AND LEFT EXACTLY 30 MINUTES LATER AFTER A COLD CALL A MILE AWAY RESULTED IN A CONFIRMED FUTURE APPOINTMENT AT AN AUTOMOBILE DEALER WE WERE BACK AT THE LAWNANDGARDEN STORE TO CLOSE A MAJOR ADVERTISING SCHEDULE DESPITE THIS REMARKABLE DISPLAY OF SALES ACUMEN AT THE END OF THE DAY MR FELLOWS APOLOGIZED IN EMBARRASSMENT WHEN WE HAD SCHEDULED THE FIELD SALES DAY HE TOLD ME HE DID EVERYTHING ON HIS LAPTOP COMPUTER AND EVEN THOUGH I DIDN'T THINK MUCH OF THE TECHNOLOGY HE THOUGHT THE WORLD OF IT HE HAD PLANNED TO SHOW ME HOW HIS COMPUTER WORKED ON OUR TRIP BUT ITS BATTERIES HAD DIED OVERNIGHT I COULDN'T HELP RECALLING THE ORBITER 4000 IT WAS INTRODUCED AS THE LATEST IN SHAVING TECHNOLOGY BY GILLETTE IN THE EARLY 1970S ELECTRICAL APPLIANCES WERE TAKING ADVANTAGE OF NEW ADVANCES IN BATTERIES AND THE ELECTRIC CARVING KNIFE LED ALL SALES GILLETTE'S ORBITER 4000 WAS A BATTERYOPERATED TECHMATIC BAND RAZOR THAT SORT OF VIBRATED AFTER A HOT PRODUCT LAUNCH IT WAS LATER QUIETLY RECALLED WHEN IT WAS DISCOVERED THAT IT SHAVED JUST AS WELL WHEN THE BATTERIES RAN DOWN IT BECAME KNOWN IN THE TRADE AS THE ELECTRIC FORK WOULD THAT THE LATEST IN SALESFORCE AUTOMATION WERE AS BENIGN YEARS AGO MOST ENLIGHTENED SALES MANAGERS DID AWAY WITH CALL REPORTS AS A WASTE OF TIME WHAT WAS ACCOMPLISHED WAS CRITICAL NOT A RECORD OF HOW IT WAS DONE SALES MANAGERS WERE REQUIRED TO TRAVEL WITH THEIR TOP PRODUCERS TO KEEP THEIR EXPERIENCED EYE ON THE MARKETPLACE AND TO IMPROVE THE TECHNIQUE OF THEIR FIELD SALES PROFESSIONALS WITH THOUSANDS OF SOFTWARE PROGRAMS NOW AVAILABLE SALES FORCE AFTER SALES FORCE IS BEING EQUIPPED IN THE NAME OF ELECTRONIC PROGRESS WITH AUTOMATION SYSTEMS ALL OF WHICH INCLUDE DETAILED ELECTRONIC CALL REPORTING FEATURES THESE PROGRAMS PUMP OUT SALES MANAGEMENT REPORTS INDICATING IN MULTICOLORED BAR CHARTS AND PIE GRAPHS OR WITH LONG COLUMNS OF FIGURES EXACTLY WHAT IS HAPPENING IN THE FIELD NO NEED TO BE THERE IT'S ALL IN THE SYSTEM A FIELD DISTRICT MANAGER FOR DATA GENERAL CORP TOLD ME HE HAD NO NEED TO GO INTO THE FIELD HE MONITORED HIS PEOPLE ON THE SYSTEM HIS JOB AS HE SAW IT WAS TO BE SURE ORDERS WERE CORRECTLY PROCESSED TRADITIONALLY COMPUTER SALESPEOPLE MAKE FEWER SALES CALLS THAN IN ANY OTHER INDUSTRY IS IT ANY WONDER THEY LOSE CONTROL OF THEIR MARKETS AND CUSTOMERS WITH GREATER SPEED THAN ANY OTHER INDUSTRY THERE IS NOT A SINGLE FUNCTION ON ANY SALES AUTOMATION SYSTEM THAT CANNOT BE DONE MANUALLY WITH EQUAL EFFICIENCY WITH THE EXCEPTION OF SUMMARY ACTIVITY REPORTS GEORGE GILDER WAS ONCE QUOTED AS SAYING THAT ONE PAIR OF HUMAN EYES PROCESSED MORE VISUAL DATA IN ONE DAY THAN ALL THE WORLD'S COMPUTERS COMBINED WHAT A SHAME IF THOSE EYES ARE GLUED TO THE SCREEN OF A SALESFORCE AUTOMATION SYSTEM SALESFORCE AUTOMATION FUNCTIONS PRIMARILY TO MARKET THE HARDWARE AND SOFTWARE IT WAS DESIGNED TO REQUIRE TOO OFTEN IT IS USED TO JUSTIFY THE DERELICTION OF DUTY OF DESKHUGGING SALES MANAGERS WHO DON'T WANT TO DO THE HARD JOB OF GETTING ON PLANES TO FIND OUT WHAT IS REALLY GOING ON WARNER LAMBERT FOR EXAMPLE ACTUALLY REQUIRES ITS FIELD MERCHANDISERS TO RECORD IN ITS DATABASE THE RESULTS OF EVERY CALL ON EVERY DRUGSTORE AND SUPERMARKET MADE EVERY DAY TO REPLACE DAMAGED GOODS AND DRESS DISPLAYS AND TO TALK TO STORE PERSONNEL ABOUT GOOD MERCHANDISING PRACTICES THIS IS BECOMING STANDARD COMPUTER PRACTICE IN THE INDUSTRY WHY TURNING FIELD PEOPLE INTO DATAENTRY CLERKS ONLY SERVES THE PURPOSE OF ALLOWING MANAGERS TO POLICE WHERE THEIR PEOPLE SAY THEY HAVE BEEN OFFICE MACHINES BELONG IN AN OFFICE NOT ON THE FRONT SEAT OR LAP OF SALES PROFESSIONALS DO THE ADMINISTRATION FOR YOUR SALESPEOPLE DON'T OFFLOAD IT ON THEM DURING THE GROWTH AGE OF ELECTRONICS SPANNING THE PAST 15 YEARS ACROSS ALL INDUSTRIES IN ALL MARKETS IMAGINABLE I HAVE NEVER SEEN EVEN ONE TOP SALES PROFESSIONAL DRAG ONE OF THESE ELECTRONIC MARVELS IN ON A SALES CALL THEY ALL UNDERSTAND INSTINCTIVELY THAT TECHNOLOGY DOES NOT BELONG IN THE EQUATION THEY KNOW WHY PEOPLE BUY THEY KEEP TRACK OF 400 OR 500 NAMES IN THEIR HEADS WITHOUT DIFFICULTY AND NO DATABASE EXISTS THAT CAN OR SHOULD CATALOG WHAT THEY KNOW ABOUT HOW AND WHY THOSE PEOPLE BUY ARE THERE EXCEPTIONS TO THIS RULE YES COMPUTERS DEFINITELY BELONG IN SALES IN A BIG WAY FOR EXAMPLE RICK KELLY OF BRISTOL MYERS DOES MILLIONS IN SALES WITH JUST THREE CUSTOMERS HE SPENDS THREE DAYS A MONTH IN CLEARWATER FLA HARRISBURG PA AND PROVIDENCE RI HE KNOWS ALMOST AS MUCH ABOUT THE STORETOSTORE OPERATIONS OF ECKERD DRUG RITEAID AND CVS AS THEY DO THEMSELVES HE KNOWS BY BEING ABLE TO COMPUTERMODEL DISTRIBUTION AND PROMOTIONAL PLANS WITH HIS BUYERS THEY SHARE DATA TO INCREASE RESULTS RICK IS A NATIONAL ACCOUNTS MANAGER AND USES HIS COMPUTER DIFFERENTLY FROM THE WAY ANY OF THE SALESFORCE AUTOMATION SYSTEMS ON THE MARKET NOW OPERATE KNOWING WHAT A WEEKEND COUPON DROP IN A SUNDAY SUPPLEMENT WILL DO IN AREA OUTLETS AT WHAT PRICE POINT AND IN WHAT VOLUME BY PACKAGE SIZE IS WHAT HE AND HIS COMPUTER WORK ON HE GETS ELECTRONIC MAIL AND HAS INDEPTH MARKET INFORMATION BUT HE DOESN'T HAVE TO FOLLOW UP LEADS OR UPDATE THE NAMES OF BUYERS WITH ONLY THREE CUSTOMERS HIS RESULTS ARE TABULATED QUARTERLY NO NEED TO CHECK NUMBERS OF CALLS PER DAY TAKE A LONG HARD LOOK AT HOW YOU EMPLOY COMPUTERS IN FIELD SALES DO YOUR BEST SALESPEOPLE WORK JUST AS WELL WITH THE BATTERIES DISCONNECTED THAT OUGHT TO TELL YOU SOMETHING ABOUT SALESFORCE AUTOMATION AND ITS PLACE IN THE HALL OF SHAME WITH THE OVERPROMISED AND UNDERDELIVERED COMPUTERIZED PREDECESSORS THAT HAVE FALLEN BY THE WAYSIDE ALONG THE ELECTRONIC HIGHWAY DO YOU REQUIRE YOUR SALES PROFESSIONALS TO USE AN ELECTRONIC FORK SEE RELATED LETTER LETTERS TO THE EDITOR KNOW YOUR COMPUTER IT CAN BE A BIG HELP WSJ FEB 14 1994 9401100064 YY94 MM02 9402140081 940128 HEALTH FIREARMS GAIN ON CAR CRASHES AS TOP KILLER BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA FIREARMS HAVE ALMOST REPLACED MOTORVEHICLE CRASHES AS THE LEADING CAUSE OF INJURYRELATED DEATH IN THE US NEW FEDERAL STUDIES SAY FOR DECADES MOTORVEHICLE ACCIDENTS HAVE CLAIMED MORE LIVES THROUGH INJURY THAN ANY OTHER CAUSE BUT FROM 1985 THROUGH 1991 THE DEATH RATE FROM SUCH ACCIDENTS FELL 10 WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED 14 ACCORDING TO REPORTS ISSUED BY THE NATIONAL CENTER FOR HEALTH STATISTICS AND THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE TRENDS WHICH ACCELERATED BETWEEN 1988 AND 1991 MEAN THAT FIREARM INJURIES COULD BECOME THE NATION'S LEADING CAUSE OF INJURY DEATH WITHIN THE NEXT TWO TO THREE YEARS IN 1991 ALONE ACCORDING TO THE REPORTS SIX STATES CALIFORNIA NEW YORK TEXAS LOUISIANA NEVADA AND VIRGINIA AS WELL AS THE DISTRICT OF COLUMBIA HAD MORE FIREARM DEATHS THAN MOTORVEHICLE DEATHS AND ALREADY FIREARMS CAUSE MORE DEATHS AMONG PEOPLE AGED 25 TO 34 THAN ANY OTHER INJURY PREVIOUS STUDIES HAVE NOTED THE EXPLODING NUMBER OF GUNRELATED DEATHS IN SELECTED GROUPS PARTICULARLY AMONG YOUNG BLACK MALES BUT THE NEW REPORTS ARE THE FIRST TO HIGHLIGHT THE BREADTH OF THE PROBLEM WE'VE JUST BEGUN TO FOCUS ON FIREARM DEATHS AND VIOLENCE AS A HEALTH ISSUE SAID JIM MERCY ACTING DIRECTOR OF THE DIVISION OF VIOLENCE PREVENTION AT THE CDC WHILE LEGISLATORS AND HEALTH OFFICIALS HAVE MADE PROGRESS IN REDUCING THE FATALITY RATE FROM MOTORVEHICLE ACCIDENTS HE SAID THERE'S BEEN LITTLE IF ANY SYSTEMATIC APPROACH TO PREVENTING FIREARM INJURIES THE NEW STATISTICS WILL LIKELY ADD FUEL TO THE DEBATE ON HOW TO STEM VIOLENCE IN A RECENT WALL STREET JOURNAL/NBC POLL 93 OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY FOR ELECTED OFFICIALS JUST 67 CITED HEALTH CARE INDEED PRESIDENT CLINTON IN HIS STATE OF THE UNION ADDRESS TUESDAY EVENING PROMISED TO GIVE THE ISSUE OF VIOLENCE NEAREQUAL BILLING WITH HIS TOP PRIORITY HEALTHCARE REFORM THE REPORTS ISSUED YESTERDAY FOUND THAT IN 1991 THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE 43536 PEOPLE DIED FROM INJURIES IN MOTORVEHICLE ACCIDENTS WHILE 38317 PEOPLE DIED FROM INJURIES TIED TO FIREARMS OF THE LATTER 47 WERE HOMICIDES 48 WERE SUICIDES AND 4 WERE CATEGORIZED AS UNINTENTIONAL DEATHS THE NEXT LEADING CAUSES OF DEATH BY INJURY WERE FALLS POISONINGS DROWNINGS AND FIRES AND BURNS THE GREATEST INCREASES IN FIREARM DEATHS ACCORDING TO THE REPORTS OCCURRED AMONG ADOLESCENTS AND YOUNG ADULTS FROM 1988 TO 1991 THE MORTALITY RATE FROM FIREARM INJURIES JUMPED 40 AMONG INDIVIDUALS AGED 15 TO 24 AMONG AMERICANS AGED 25 TO 34 THE RATE INCREASED 8 GIVEN THE DEEP AND COMPLEX ROOTS OF VIOLENCE SAID DR MERCY AT THE CDC ANY EFFORTS TO REDUCE THE NUMBER OF DEATHS LINKED TO FIREARMS MAY PROVE EQUALLY INVOLVED BUT THE CDC CALLED YESTERDAY FOR A MASSIVE EDUCATION PROGRAM AMONG OTHER STEPS TO HELP PREVENT SUCH INJURIES OTHER RECENT STUDIES HAVE SHOWN THAT THE SIMPLE PRESENCE OF A GUN IN A HOME IS LINKED TO AN APPROXIMATELY FIVEFOLD INCREASE IN THE RISK OF SUICIDE AND A THREEFOLD INCREASE IN THE RISK OF HOMICIDE FOR HOUSEHOLD MEMBERS SEE RELATED LETTER LETTERS TO THE EDITOR IT'S UNFAIR TO COMPARE DEATHS BY CAR VS GUNS WSJ FEB 14 1994 9401280101 YY94 MM02 9402140077 940111 BUSINESS WORLD THE CLOGGED PIPELINE OF CRAFT TRAINING BY TIM W FERGUSON IF THE WHITE HOUSE WANTS TO EMPHASIZE WORKER TRAINING AS PART OF ITS NEW INVESTMENT BUDGET IT OUGHT TO GRAPPLE WITH A POLITICAL PROBLEM THAT HAS NOTHING TO DO WITH REVENUE TRADEUNION OPPOSITION BUT THIS IT APPARENTLY WILL NOT DO IN SEVERAL STATES JOBS AWAIT THOSE TAUGHT TO BE ELECTRICIANS HEATING AND AIRCONDITIONING INSTALLERS WELDERS AND PLUMBERS THAT'S THE EARLY EVIDENCE FROM PARALLEL APPRENTICESHIP PROGRAMS OFFERED OUTSIDE THE UNIONS AND OVER THEIR OBJECTIONS IN PLACES WHERE ORGANIZED LABOR PREVIOUSLY CONTROLLED ENTRY TO FORMAL CONSTRUCTION TRAINING THESE LOCATIONS INCLUDE CALIFORNIA AND WASHINGTON AS WELL AS MAJOR MIDWESTERN AND EASTERN STATES HOW MUCH OF A DIFFERENCE WOULD EXPANSION OF THESE EFFORTS MAKE A BIG ONE SAYS HERBERT NORTHRUP AN EMERITUS PROFESSOR AT THE WHARTON SCHOOL HE ESTIMATES THAT IF THESE TRADES COULD TRULY BE OPENED UP NOT JUST TO FULL APPRENTICES BUT TO HELPERS CURRENTLY STYMIED BY UNION RULES 500000 TO 750000 PEOPLE MANY OF THEM CURRENTLY UNEMPLOYABLE ABOVE THE MINIMUM WAGE COULD BE ADDED TO THE 38 MILLION NOW IN CONSTRUCTION CRAFTS DAVID TURNER A FEDERAL TRAINING OFFICIAL IN SAN FRANCISCO IS MORE GUARDED BUT SAYS NONUNION CONTRACTORS COULD BE ABLE TO DOUBLE THE APPROXIMATELY 180000 APPRENTICES IN THE INDUSTRY NOW THE ISSUE IS HOT IN SOME OF THE 27 STATES THAT REGULATE APPRENTICES THERE THE UNIONIZED SECTOR EVEN THOUGH ITS CONSTRUCTIONMARKET SHARE HAS DWINDLED TO PERHAPS 25 HAS DOMINATED THE LICENSING PROCESS HOWEVER A SERIES OF COURT INTERPRETATIONS OF THE FEDERAL LAW KNOWN AS ERISA PRIMARILY CONCERNED WITH PENSIONS ARE FORCING THOSE STATES TO OPEN UP BUT JUST AS RESULTS FROM THE NEW PROGRAMS BEGIN TO SHOW WITH PERHAPS 1000 ALREADY TAKING PART IN CALIFORNIA A POLITICAL REACTION HAS SET IN REP HOWARD BERMAN A LOS ANGELES DEMOCRAT AND ONETIME LABOR LAWYER HAS GUIDED A MEASURE THROUGH THE HOUSE TO RETURN RESTRICTIVE POWERS TO THE STATES SEN ARLEN SPECTER R PA WHOM THE AFLCIO GRANTED A THIRD TERM HAS PICKED UP THE LEGISLATION IN THAT CHAMBER EVEN WITHOUT THE BERMAN BILL IT ISN'T EASY TO GET A VIABLE OPENSHOP APPRENTICESHIP PROGRAM TAKE THE CASE OF LEONARD EDH OWNER OF WALTHER ELECTRIC IN CERES CALIF NEAR MODESTO A SWEDISH IMMIGRANT RAISED IN A WORLD OF WIDESPREAD CRAFT TRAINING HE'S CREATED A MODERN TEACHING FACILITY AT HIS COMPANY OFFICES MORE THAN 25 HIGHSCHOOL GRADUATE HIRES ARE LEARNING THE TRADE THERE BUT MR EDH CANNOT BE SURE A DECADE INTO THE QUEST WHETHER HIS PROGRAM WILL BE ALLOWED TO YIELD MANY JOURNEYMEN ELECTRICIANS HE'S BEEN THROUGH YEARS OF UNION RESISTANCE IN THE BUREAUCRACY AND THE COURTS AND HIS FOES ARE STILL TRYING TO CATCH HIM IN SOME TECHNICAL VIOLATION OF PAYROLL PROCEDURES THAT COULD VOID HIS EFFORTS UNIONS SHROUD ACCESS TO THEIR OWN APPRENTICESHIPS MR EDH COMPLAINS AT ONE TIME RACIAL DISCRIMINATION MOTIVATED THEIR ACTIONS BUT INCREASINGLY THEY ARE DRIVEN BY THE DESIRE TO PROTECT THE ARTIFICIALLY HIGH WAGES OF EXISTING MEMBERS BECAUSE THE BURDEN OF SETTING UP APPRENTICE TRAINING IS SO GREAT OTHER NONUNION FIRMS ARE RELYING ON PROGRAMS RUN BY THE ASSOCIATED BUILDERS AND CONTRACTORS ABC THEIR TRADE GROUP BUT IN THE LOS ANGELES METROPOLITAN AREA THESE EFFORTS TOO HAVE TAKEN YEARS TO GAIN APPROVAL AND SOME STILL ARE BEING STALLED A NONUNION ROOFING APPRENTICESHIP IN NORTHERN CALIFORNIA GOT GOING IN 1991 AFTER A FIVEYEAR DELAY AND HAS ABOUT 200 PARTICIPANTS IN THAT CASE AS IN CARPENTRY THE CORE ISSUE IS NOT SO MUCH RESTRICTED ENTRY TO THE FIELD AS SIMPLY AN INTENSE DESIRE BY UNION SHOPS TO DEFEND THEIR MARKET SHARE THE BACKDROP OF THIS WHOLE FIGHT IS THE DRAMATIC DECLINE OF THE UNIONIZED CONSTRUCTION INDUSTRY ALTHOUGH NONUNION CONTRACTORS CAN GET IDLE HANDS TO SLIP OVER FROM THE OTHER SIDE OR CAN RELY ON LABORERS TO DO SOME OF THE LESSSKILLED CRAFT WORK THEY OFTEN HUNGER FOR SANCTIONED APPRENTICES THE REASON IS PUBLIC WORKS IN A SLACK CONSTRUCTION PERIOD PROJECTS INVOLVING THE GOVERNMENT MAY ACCOUNT FOR A THIRD OF ALL BUSINESS UNDER THE FEDERAL DAVISBACON ACT AND SIMILAR STATE STATUTES A PREVAILING UNION WAGE MUST BE PAID ON THESE JOBS BUT APPRENTICES MAY BE USED FOR AS LITTLE AS HALF THE JOURNEYMAN PAY BECAUSE THESE APPRENTICES MUST BE OFFICIALLY SANCTIONED NONUNION CONTRACTORS IN SOME STATES CAN'T COMPETE FOR SOME PUBLIC WORKS BECAUSE THEY LACK A SUPPLY OF THIS CUTRATE PERSONNEL FOR ELECTRICIANS IN CALIFORNIA THE MARKET RATE FOR PRIVATE JOBS MAY BE 40 BELOW THE APPROXIMATELY 35ANHOUR JOURNEYMAN SCALE WITH HELPERS WHO ARE ABLE TO DO MANY OF THE CONDUIT AND SIMPLE OUTLET TASKS WHEN ALLOWED SAVINGS MAY BE EVEN GREATER THE RESULT IS MORE WORKERS ON MORE JOBS BUT FOR LESS MONEY THE UNIONS DON'T BUY THAT TRADEOFF SO THEY TRY TO PROTECT THEIR SCALE AND BY LIMITING SUPPLY FROM NONUNION TRAINING PROGRAMS MINIMIZE THE OUT OF WORK TIME FOR THEIR MEMBERS THE PUBLICPOLICY CHOICE THEN MIGHT BE REFLECTED IN THIS ROUGH EXAMPLE 100 CRAFTSMEN AT 20 TO 35 AN HOUR VS 200 AT 10 TO 25 AN HOUR IF THE SKILL LEVELS ARE ADEQUATE IN BOTH CASES A STATE AND NATION WITH A BLUECOLLAR EMPLOYMENT PROBLEM SHOULD PROBABLY CHOOSE THE LATTER IT WOULD ALSO ENJOY LOWER CONSTRUCTION AND REPAIR COSTS AND ALL THE SOCIAL BENEFITS THAT FOLLOW YET THIS HAS NOT BEEN THE THRUST IN REGULATED STATES EVEN ONES SUCH AS CALIFORNIA WITH A REPUBLICAN GOVERNOR HOLDING MOST OF THE LEVERS OF POWER THE ABC TRADE GROUP DESPITE ITS NOW OVERWHELMING EDGE WITHIN THE BUILDING INDUSTRY HAS BEEN BARELY ABLE TO BUDGE SACRAMENTO IN SOME OTHER MAJOR STATES ORGANIZED LABOR IS EVEN MORE ENTRENCHED ITS CONTROL IN THE NEW YORK METROPOLITAN AREA IS SO TIGHT THAT DURING THE GREAT 1980S HIGHRISE BOOM UNION WORK CREWS WERE BROUGHT FROM DISTANT CITIES WHILE LOCALS WANTED FOR JOBS UNFORTUNATELY BECAUSE TRAINING SUCH AS THE CLINTON ADMINISTRATION'S PLANNED SCHOOL TO WORK PROGRAM ENTAILS MAJOR STATE PARTICIPATION THE POLITICAL GRIP EXERCISED BY THE CONSTRUCTION TRADE UNIONS IS LIKELY TO LIMIT THE ABILITY TO PUT PEOPLE TO WORK IN SEVERAL KEY VOCATIONS YET THE WHITE HOUSE BACKS THE BERMAN BILL EXPANDED JOB OPPORTUNITIES IT APPEARS AREN'T WORTH RISKING ANOTHER TIFF WITH THE BIG LABOR BASE SAN FRANCISCO ATTORNEY MARK THIERMAN WHO HAS LITIGATED ON BEHALF OF NONUNION LABOR SAYS HE BELIEVES THAT EVEN IF BERMAN PASSES GROUNDS CAN BE FOUND TO SECURE THE OPENING OF NEW APPRENTICESHIP PROGRAMS IN THE BATTLEGROUND STATES BUT OTHERS DISAGREE TECHNOLOGY SHOULD SLOWLY DIMINISH THE IMPORTANCE OF THE CONSTRUCTION TRADES AS MORE STRUCTURES ARE COMPOSED OF MODULAR ARRANGEMENTS STRAIGHT FROM THE FACTORY BUT FOR SOME TIME TO COME THIS LINE OF WORK CAN BE THE TICKET TO A DECENT LIVING FOR MANY MORE IF ONLY ALL THE STATES CAN BE ENJOINED TO MAKE IT POSSIBLE SEE RELATED LETTER LETTERS TO THE EDITOR TRADESPEOPLE UNDERGO RIGOROUS TRAINING WSJ FEB 14 1994 9401110089 YY94 MM02 9402140073 940114 INTERNATIONAL WORLD ECONOMY CIA FINDS A NEW FOCUS ESPIONAGE AND BRIBERY THAT HURT US BUSINESS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTENTION US BUSINESSMEN HAVING TROUBLE GUARDING YOUR SECRETS LOSING OVERSEAS CONTRACTS TO FOREIGN RIVALS WHO PAY BIG BRIBES THE CIA WANTS TO LEND YOU A HELPING HAND THERE'S A BIG JOB TO BE DONE ACCORDING TO JAMES WOOLSEY WHO BECAME DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY LAST YEAR AND THE CIA WANTS TO DO IT BECAUSE AMERICANS WERE LESS CONCERNED ABOUT EXPORTS WHILE BUSILY WAGING THE COLD WAR THE US OFTEN HASN'T BEEN PARTICULARLY STRICT ABOUT SUCH INDUSTRIAL ESPIONAGE AND BRIBERY TARGETED AGAINST AMERICAN COMPANIES IN THE PAST MR WOOLSEY TOLD A BUSINESS GROUP RECENTLY WELL NO MORE MR NICE GUY MICHAEL HERSHMAN OF THE FAIRFAX GROUP A PRIVATE INTELLIGENCE COMPANY WITH CORPORATE CLIENTS SAYS HE WELCOMES THIS SIGNIFICANT CHANGE OF DIRECTION FOR THE CIA WE HAVE TO START BRINGING OURSELVES ONTO AN EQUAL FOOTING WITH THE COMPETITION THE US SPIES MAY BE LOOKING OUT FOR THEMSELVES AS WELL THE COLLAPSE OF THE SOVIET UNION MEANS THE CIA LIKE THE DEFENSE DEPARTMENT AND OTHERS CONCERNED WITH NATIONAL SECURITY MUST SLIM DOWN THIS INTENSIFIED INTEREST IN BUSINESS MATTERS MAY BE PARTLY AN EFFORT TO KEEP THE SLIMMING UNDER CONTROL THAT COULD BE A HARD SELL THERE IS NO DESIRE ON THIS COMMITTEE'S PART TO HELP THEM CAST ABOUT FOR NEW WORK WHEN THE NEED DOESN'T DEMONSTRABLY EXIST WARNS MICHAEL SHEEHY CHIEF COUNSEL FOR THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE AN OVERSIGHT BODY BUT THE CIA CLAIMS THE NEED IS THERE THOUGH AGENCY OFFICIALS AND SKEPTICS AGREE THERE'S A DANGER OF GOING TOO FAR THAT'S WHY THE CIA INSISTS IT WON'T TRY AND OTHERS SAY THE GOVERNMENT WOULD NEVER PERMIT SPYING ON FOREIGN COMPANIES OR STEALING PROPRIETARY SECRETS FOR THE DIRECT BENEFIT OF AMERICAN BUSINESS THE LEGAL AND FOREIGN POLICY RAMIFICATIONS OF THIS WOULD BE COUNTERPRODUCTIVE AND DAMAGING IN A NUMBER OF WAYS MR WOOLSEY SAYS THE CIA HAS LONG WATCHED OTHER COUNTRIES' SPY AGENCIES AND TRIED TO KEEP TRACK OF MEDDLING THAT HURTS US COMPANIES BUT MR WOOLSEY IS PUSHING DEEPER INTO COMMERCIAL MATTERS WE WILL DO SO WITH SPECIAL ENTHUSIASM AND RELISH THOUGH THE TOPIC REMAINS CONTROVERSIAL BOTH WITHIN THE CIA AND THE ADMINISTRATION AS A WHOLE SOME EXPERTS CONTEND THAT THESE AREN'T PROPER DUTIES FOR THE NATION'S CHIEF INTELLIGENCE BUREAU WHAT IS CIA SUPPOSED TO STAND FOR THE CENTRAL INTELLIGENCE ANTIBRIBERY AGENCY ASKS A SKEPTICAL FORMER US OFFICIAL FAMILIAR WITH ITS OPERATIONS BUT AGENCY OFFICIALS SAY THE BUSINESS ROLE CAN BE TWOFOLD ONE TASK IS TO MONITOR MORE CLOSELY THOSE FOREIGN SPY AGENCIES THAT TRY TO STEAL AMERICAN BUSINESS OR TECHNICAL SECRETS FRANCE IS WIDELY CONSIDERED THE MOST BLATANT TRANSGRESSOR BUT SPIES FROM BRITAIN ISRAEL CHINA JAPAN AND SOUTH KOREA ALLEGEDLY ALSO ARE MAJOR PLAYERS IN THIS GAME FOREIGN INTELLIGENCE AGENCIES GENERALLY WORK CLOSELY WITH THEIR BUSINESSMEN SAYS A SENIOR CIA OFFICIAL THE SECOND TASK IS TO FIGHT BRIBERY AND OTHER UNFAIR PRACTICES STRICT US LAWS INHIBIT AMERICAN COMPANIES ON THE PAYOFF FRONT IT WOULD PUT MORE OFFICERS CAREER EMPLOYEES AGENTS OUTSIDE RECRUITS AND OTHER ASSETS INTO THE FRAY TO GATHER DATA ABOUT PRACTICES THAT HARM US BUSINESS INTERESTS ANY USEFUL INFORMATION WOULD BE SENT ELSEWHERE FOR ACTION TO THE STATE OR COMMERCE DEPARTMENTS FOR EXAMPLE OR THE LOCAL US AMBASSADOR THE AGENCY HAS NO PLANS TO ACT DIRECTLY FOR AMERICAN BUSINESS JUST HOW MUCH BIGTIME BRIBERY TAKES PLACE IS UNCLEAR ONE SECRET US TALLY FINDS FEWER THAN 100 CASES IN RECENT YEARS YET STRANGE THINGS DO OCCUR A CURRENT EXAMPLE AN AMERICAN COMPANY IN SOUTHEAST ASIA THOUGHT IT HAD WON A MAJOR GOVERNMENT CONTRACT ONLY TO SEE THE DEADLINE EXTENDED AT THE LAST MINUTE THEN AN OBSCURE GROUP ENTERED AN ALMOST IDENTICAL COMPLEX BID AT A SLIGHTLY LOWER PRICE THE US AMBASSADOR HAS PROTESTED HEATEDLY TO HIS HOST GOVERNMENT ON GROUNDS THAT SECRET TERMS WERE STOLEN FOR THE RIVAL'S BENEFIT THE OUTCOME IS STILL PENDING BUSINESSES AREN'T UNIFORMLY ENTHUSIASTIC ABOUT GETTING HELP AND GUIDANCE FROM THE CIA ONE AGENCY OFFICIAL CONCEDES THERE'S HISTORICAL ANIMOSITY BETWEEN GOVERNMENT AND BUSINESS AND MANY EXECUTIVES DON'T WANT TO BE TAINTED BY ASSOCIATION WITH SPIES PERHAPS THAT'S WHY AMERICAN TELEPHONE & TELEGRAPH CO SAYS WE DON'T NEED THE CIA'S HELP IN THESE KIND OF MATTERS THANK YOU VERY MUCH SEE RELATED LETTER LETTERS TO THE EDITOR WE ARE NOT SPYING WSJ FEB 14 1994 9401140161 YY94 MM02 9402140062 940121 PAYING THE PRICE LIFE INSURERS NOW FIND THEY ARE HELD LIABLE FOR ABUSES BY AGENTS BLAMING A FEW BAD APPLES FAILED NEW YORK LIFE IN COSTLY CIVIL LAWSUIT TOUGHER REGULATION LIKELY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CORPUS CHRISTI TEXAS OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFEINSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF 27000 BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOTFREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE CO FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST 65000 AN ASTOUNDING 21 MILLION NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFEINSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR HERRERA ON INDIVIDUAL ROGUE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFEINSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE CO OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS 60000 PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO 40 MILLION IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK & CO'S ALLSTATE CORP AND PRUDENTIAL INSURANCE CO OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFEINSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SEN HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REP JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS ILLUSTRATING POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFEINSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED 30 LIFEINSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COS GUARDIAN LIFE INSURANCE CO OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE CO AND MUTUAL LIFE INSURANCE CO OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFEINSURANCE INDUSTRY SINCE 1905 WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FARREACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONGTERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME 65 BILLION ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAIDUP ADDITION MORTALITY CHARGE AND WAIVEOFPREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE SAYS JAMES HUNT A WOBURN MASS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFEINSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLELIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLELIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A 45YEAROLD MALE WHO BUYS A 300000 WHOLELIFE POLICY MIGHT PAY ABOUT 6800 A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN 10 YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO 55 OF THE FIRSTYEAR PREMIUMS OR 3750 ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN 1985 AT AGE 32 DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR CRUZ SPURNED MR HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR HERRERA LUCRATIVEWHOLELIFE POLICY MR HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLELIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR HERRERA MR HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR 27000 FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A 300000 WHOLELIFE INSURANCE POLICY BECAUSE MR LOPEZ WAS 70 THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN 60 MILES WEST OF CORPUS CHRISTI MR HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OILFIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR HERNANDEZ SUDDENLY CAME INTO MONEY IN 1987 WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A 331000 SETTLEMENT MR HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARDSELL CAMPAIGN AIMED AT GETTING MR HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR HERNANDEZ AGREED TO INVEST 100000 SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A 100000 LIFEINSURANCE POLICY THEN HE INCREASED HER COVERAGE TO 1 MILLION BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO 27000 A YEAR MRS HERNANDEZ NEVER GOT A BILL MR HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY 1991 MRS HERNANDEZ GOT A 27000 BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR HERRERA SOLD THE POLICY TO MRS HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL IT WAS DO OR DIE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERMLIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US MR DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS HERNANDEZ AND ORDERED IT TO PAY HER 65000 FOR ACTUAL DAMAGES 1 MILLION FOR MENTAL ANGUISH 5 MILLION FOR LEGAL FEES AND 15 MILLION IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF 26 BILLION SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFEINSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER SEE RELATED LETTER LETTERS TO THE EDITOR A MORAL RESPONSIBILITY WSJ FEB 14 1994 9402090153 YY94 MM02 9402110215 940211 INTERNATIONAL IRAN IRAQ ENGAGE IN POWER STRUGGLE TO SELECT SPIRITUAL LEADER OF SHIITES BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL IN THE ANCIENT ISLAMIC LEARNING CENTERS OF IRAN AND IRAQ A POWER STRUGGLE IS TAKING PLACE TO CHOOSE THE SUPREME SPIRITUAL LEADER OF THE WORLD'S SHIITE MUSLIMS THE RESULT OF THE STRUGGLE COULD EITHER INCREASE THE CLOUT OF IRAN'S THEOCRATIC REGIME OR STRENGTHEN THE SCHOOL OF THOUGHT THAT VALUES SEPARATION OF CHURCH AND STATE BECAUSE OF THE HIGH STAKES THE GOVERNMENTS OF IRAN AND IRAQ ARE MEDDLING IN WHAT HAS TRADITIONALLY BEEN A PURELY SPIRITUAL MATTER WHILE THEY ARE ONLY ABOUT 10 OF THE WORLD'S ONE BILLION MUSLIMS SHIITES ARE THE OVERWHELMINGLY DOMINANT SECT IN IRAN AND THE MAJORITY IN IRAQ UNLIKE SUNNI MUSLIMS SHIITES HAVE A WELLORGANIZED HIERARCHICAL CLERGY TO WHICH BELIEVERS LOOK FOR GUIDANCE ON EVERY ASPECT OF LIFE A HANDFUL OF THE MOST LEARNED SCHOLARS AND JURISTS HAVE THE RANK OF GRAND AYATOLLAH AND FROM AMONG THEM IS CHOSEN USUALLY BY CONSENSUS THE MARJA OR SPIRITUAL LEADER TRADITIONALLY THE SELECTION HAS TAKEN PLACE IN THE HOLY CITY OF NAJAF IN SOUTHERN IRAQ WHICH HAS HAD A SHIITE SEMINARY FOR OVER A THOUSAND YEARS MOST OF THE SECT'S STAR CLERGY INCLUDING THE LATE GRAND AYATOLLAH RUHOLLAH KHOMEINI HAVE BEEN TRAINED THERE BUT SADDAM HUSSEIN'S INTERFERENCE IN THE RELIGIOUS SCHOOLS CULMINATING IN HIS BLOODY SUPPRESSION OF A SHIITELED UPRISING IN SOUTHERN IRAQ AFTER THE GULF WAR HAS LEFT THE SEMINARIES DEVASTATED HUNDREDS OF TEACHERS AND SCHOLARS HAVE BEEN KILLED OR IMPRISONED ANCIENT LIBRARIES HAVE BEEN BURNED OR LOOTED DESTROYING PRICELESS ISLAMIC MANUSCRIPTS THAT HAD YET TO BE STUDIED BY MODERN METHODS ARRESTS HARASSMENT AND SUDDEN CLOSURES OF RELIGIOUS SCHOOLS HAVE CAUSED MANY SHIITES TO FLEE THE CENTERS OF LEARNING ARE FUNCTIONING BUT THEY ARE BETWEEN LIFE AND DEATH SAYS SHEIK FADHEL ALSAHLANI OF THE IMAM ALKHOEI ISLAMIC CENTER IN NEW YORK CITY THOSE WHO REMAIN WILL STAY THERE NO MATTER WHAT WITH THE AIM OF MAKING SURE THE NAJAF SURVIVES AMONG THOSE REMAINING IN NAJAF IS GRAND AYATOLLAH ALI ALHUSSAINI ALSEESTANI WHOM MANY SHIITES BELIEVE SHOULD BE RECOGNIZED AS THE NEXT MARJA THE POST BECAME VACANT THROUGH THE DEATHS IN QUICK SUCCESSION OF TWO RENOWNED AND RESPECTED GRAND AYATOLLAHS ABDUL QASSEM ALKHOEI IN IRAQ AND MUHAMMAD REZA GOLPAYEGANI IN IRAN AYATOLLAH SEESTANI 63 YEARS OLD WAS A STUDENT OF AYATOLLAH KHOEI AND SHARES HIS BELIEF THAT IN MODERN TIMES A SPIRITUAL LEADER MUST STAY CLEAR OF POLITICAL POWER POLITICAL REALITIES HE BELIEVES WOULD INEVITABLY FORCE THE SPIRITUAL LEADER TO ACT OR ENDORSE ACTIONS CONTRARY TO ISLAM BY CONTRAST IRAN SINCE THE ISLAMIC REVOLUTION HAS SOUGHT TO UNIFY STATE AND SPIRITUAL POWER TOWARD THAT END IRAN CLAIMS THAT SINCE NAJAF IS SO BELEAGUERED BY SADDAM HUSSEIN'S REGIME THE ROLE OF CHOOSING THE MARJA SHOULD FALL TO IRAN'S HOLY CITY OF QUM IRAN CAME CLOSE TO UNIFYING STATE AND SPIRITUAL POWER UNDER AYATOLLAH KHOMEINI WHOSE RELIGIOUS CREDENTIALS WERE RECOGNIZED AS IMPRESSIVE EVEN BY SHIITES WHO DISAGREED WITH MANY OF HIS ACTIONS HIS SUCCESSOR AYATOLLAH ALI KHAMENEI HASN'T NEARLY SUCH GOOD CREDENTIALS AND DOESN'T EVEN HOLD THE RANK OF GRAND AYATOLLAH LEADING FIGURES IN IRAN ARE PROMOTING GRAND AYATOLLAH MOHAMMED ALI ARAGI A FRAIL SCHOLAR SAID TO BE OVER 100 YEARS OLD AND PHYSICALLY FAILING SOME IRAQI SHIITES FEAR THAT THE REGIME ONLY WANTS TO HAVE AS MARJA A FIGURE TOO WEAK TO STAND IN THE WAY OF ITS WILL YET MANY SHIITES ALSO ARE ALARMED AT THE POWER SADDAM HUSSEIN NOW WIELDS IN THE SEMINARIES OF SOUTHERN IRAQ BEFORE THE GULF WAR SADDAM HUSSEIN A SUNNI CONTAINED HIS PERSECUTION OF PROMINENT SHIITES TRYING TO PORTRAY HIMSELF AS LEADER OF ALL THE IRAQI PEOPLE BUT THE TONE CHANGED MARKEDLY DURING THE SUPPRESSION OF THE UPRISING WHEN IRAQI ARMY TANKS ROLLED INTO THE HOLY CITIES BLAZONED WITH BANNERS READING NO MORE SHIITES AFTER TODAY MANY BELIEVE THAT THE DEATH OF AYATOLLAH KHOEI IN AUGUST OF 1992 WAS HASTENED BY IRAQI GOVERNMENT PERSECUTION 9402110214 940211 WHO'S NEWS FIRST PALM BEACH BANCORP INC FIRST PALM BEACH BANCORP INC WEST PALM BEACH FLA WILLIAM W LYNCH 67 YEARS OLD SAID HE WILL RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY EFFECTIVE JULY 1 HE WILL BE SUCCEEDED BY LOUIS O DAVIS JR 46 WHO IS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9402110213 940211 WHO'S NEWS TECHNOLOGY SOLUTIONS CO TECHNOLOGY SOLUTIONS CO CHICAGO JAMES S CARLUCCIO 40 YEARS OLD FORMERLY SENIOR VICE PRESIDENT WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS COMPUTER SYSTEMS AND SERVICES CONCERN AS WELL AS A MEMBER OF THE OFFICE OF THE CHAIRMAN 9402110212 940211 WHO'S NEWS DOW CHEMICAL CO DOW CHEMICAL CO MIDLAND MICH FRED P CORSON 52 YEARS OLD VICE PRESIDENT AND DIRECTOR OF RESEARCH AND DEVELOPMENT WAS NAMED A DIRECTOR OF THIS CHEMICAL CONCERN INCREASING BOARD MEMBERSHIP TO 17 9402110211 940211 WHO'S NEWS ILLINOIS CENTRAL CORP ILLINOIS CENTRAL CORP CHICAGO F JAY TAYLOR 70YEAROLD FORMER PRESIDENT OF LOUISIANA TECH UNIVERSITY AND CURRENTLY A LABORMANAGEMENT ARBITRATOR WAS ELECTED A DIRECTOR OF THIS RAILROAD HOLDING COMPANY INCREASING BOARD MEMBERSHIP TO 10 9402110210 940211 WHO'S NEWS JENNIFER CONVERTIBLES INC JENNIFER CONVERTIBLES INC WOODBURY NY LAWRENCE R HAUT 33 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL A NEW POSITION AT THIS SOFA BED RETAILER MR HAUT HAD BEEN AN ATTORNEY AT NEW YORK LAW FIRM SCHULTE ROTH & ZABEL 9402110209 940211 CONTINENTAL UNIT TO RAISE PRICES AKRON OHIO GENERAL TIRE INC THE US AND CANADIAN ARM OF CONTINENTAL AG PLANS TO BOOST TIRE PRICES 3 TO 5 EFFECTIVE MAY 1 THE INCREASE COVERS ALL LINES OF GENERAL AND CONTINENTAL BRAND TIRES PRODUCED FOR THE US REPLACEMENT MARKET 9402110208 940211 WHO'S NEWS BROTHERS GOURMET COFFEES BROTHERS GOURMET COFFEES BOCA RATON FLA SAM BOYER 36 YEARS OLD AND A COFOUNDER OF THIS COFFEEROASTING COMPANY WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN THE COMPANY ALSO INCREASED THE BOARD TO EIGHT MEMBERS ADDING TWO DIRECTORS THOMAS BONOMA 47 OF CONSULTING FIRM BGI CAMBRIDGE MASS AND ADRIAN J SLYWOTZKY 43 OF CONSULTING FIRM CORPORATE DECISIONS INC BOSTON 9402110207 940211 AIR FRANCE EMPLOYEES MAY APPROVE PAY CUT AIRLINE'S SURVEY FINDS PARIS MORE THAN HALF THE EMPLOYEES OF AIR FRANCE THE FRENCH STATE AIRLINE WOULD APPROVE A SALARY CUT AS PART OF EFFORTS TO BRING THE AIRLINE BACK TO PROFITABILITY AN INTERNAL COMPANY SURVEY SHOWS THE SURVEY OF 14677 EMPLOYEES IN AN INTERNAL PUBLICATION ALSO SHOWS THEY AGREE OVERWHELMINGLY WITH MANAGEMENT THAT AIR FRANCE'S PROBLEMS ARE EXTREMELY SERIOUS AND THAT THE STAFF IS MORE CONCERNED WITH INTERNAL QUESTIONS THAN CLIENTS STILL ON THE SALARY CUT QUESTION 27 SAID IT WAS AN INAPPROPRIATE MEASURE AND 12 SAID IT WAS AN INJUSTICE EVEN THOSE IN FAVOR SAID THAT IT WAS AN IDEA THAT HAD TO BE QUALIFIED TO BE IMPLEMENTED THE AIRLINE WAS WRACKED BY A CRIPPLING STRIKE LAST OCTOBER AFTER GROUND CREW BECAME IRATE OVER EFFORTS TO CUT MILEAGE ALLOWANCES AND OVERTIME AS PART OF A LARGER LAYOFF AND COSTCUTTING PLAN THE MOVE COINCIDED WITH AN INCREASE IN PAY FOR SOME FLYING STAFF THE RESULT OF AGREEMENTS THAT WERE PREVIOUSLY IN PLACE 9402110206 940211 INTERNATIONAL WORLD ECONOMY COMMERCE DEPARTMENT CHANGES TUNE TRUMPETS INVESTING IN TOP 10' NATIONS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ASK FOR A SKETCH OF THE GLOBAL ECONOMY AND IT'S LIKELY TO BE DOMINATED BY THREE BIG BLOBS FOR JAPAN WESTERN EUROPE AND NORTH AMERICA WELL IT'S TIME TO GO BACK TO THE DRAWING BOARD INSISTS JEFFREY GARTEN A SOMETIME ACADEMIC MERCHANT BANKER AND ECONOMIC POLEMICIST WHO IS NOW US UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE HE SAYS 75 OF THE WORLD'S TOTAL TRADE GROWTH FOR YEARS TO COME WILL INVOLVE 10 QUITE DIFFERENT PLACES ALL OF THEM LARGE DEVELOPING NATIONS TRYING TO EXPAND FREEMARKET SYSTEMS AND BECAUSE THAT'S WHERE THE MONEY IS US FOREIGN ECONOMIC POLICY IS BEING REVISED ACCORDINGLY EXPANDING US EXPORTS IS THE GOAL AND THIS IS WHERE THE EFFORTS OF GOVERNMENT WILL PAY OFF THE MOST HE CONTENDS THAT MAKES SENSE TO MANY AMERICAN EXECUTIVES WHO'D LIKE MORE OFFICIAL HELP WHEN COMPETING IN A COMPLEX FASTCHANGING WORLD THEY WANT PRESIDENT CLINTON TO FIGHT FOR THEM JUST AS FOREIGN LEADERS BATTLE FOR THEIR OWN COMMERCIAL INTERESTS SO FAR SO GOOD WE'RE ALL ENCOURAGED THAT WE'RE GOING DOWN THE RIGHT PATH TOGETHER SAYS DANIEL MEYER CHAIRMAN OF CINCINNATI MILACRON INC A LEADING MACHINETOOL MAKER THE PATH LEADS MAINLY TO MR GARTEN'S 10 LARGE EMERGING MARKETS ARGENTINA BRAZIL MEXICO POLAND SOUTH AFRICA INDIA TURKEY SOUTH KOREA AND INDONESIA PLUS THE ECONOMIC ZONE OF CHINA HONG KONG AND TAIWAN MOST HAVE GREAT GEOGRAPHICAL SIZE AND POPULATIONS FREEMARKET REFORMS AND HIGH GROWTH RATES BY THE YEAR 2010 THEY'LL DOUBLE THEIR SHARE OF GLOBAL OUTPUT AND THEIR MERCHANDISE IMPORTS BY THEN WILL BE 1 TRILLION HIGHER THAN IN 1990 PLUS SERVICES THAT'S TRIPLE THE COMBINED INCREASE EXPECTED FOR JAPAN EUROPE NORTH AMERICA AND THE WORLD'S 120 OTHER DEVELOPING NATIONS THUS MR GARTEN WHO WROTE A BOOK DESCRIBING ECONOMIC COMBAT BETWEEN THE US JAPAN AND GERMANY NOW SAYS THE VISION I ONCE HAD OF A TRIPOLAR GLOBAL ECONOMY BEGINS TO FADE THIS TOP 10 ISN'T RIGID THAILAND COULD BE ADDED SOON AND VIETNAM LATER WHILE POLITICAL UNREST MIGHT CAUSE OTHERS SUCH AS SOUTH AFRICA TO DROP OFF RUSSIA REMAINS A SPECIAL CASE DESERVING GREAT ATTENTION FOR REASONS OTHER THAN PURE ECONOMICS BUT THE MAIN POINT HOLDS THERE'S A SHORT LIST OF BIG DEVELOPING NATIONS THAT OFFER A DISPROPORTIONATE SHARE OF ECONOMIC OPPORTUNITY AND THAT'S WHERE THE US GOVERNMENT WANTS BUSINESS TO TRY HARDER IT PLANS TO HELP IN SEVERAL WAYS FOR ONE THING IT WILL OFFER MORE FINANCING SUPPORT BECAUSE SALES TERMS CAN BE DECISIVE WASHINGTON WILL CHANNEL EXPORTIMPORT BANK LOANS TIED AID WHICH ECONOMISTS HATE BUT BUSINESSMEN LOVE AND POLITICALRISK INSURANCE INTO THESE 10 AREAS ALTHOUGH IT'S NOT LIKELY TO MATCH AMOUNTS OFFERED BY SAY JAPAN A NEW ADVOCACY CENTER WITHIN THE COMMERCE DEPARTMENT WILL TRACK THE 50 TO 100 LARGEST OVERSEAS PROJECTS VIEWED AS INTERESTING TO US COMPANIES AND THERE WILL BE A VIGOROUS LOBBYING EFFORT FOR TOO MANY YEARS WE HAVE SEEN PRESIDENT MITTERRAND AND CHANCELLOR KOHL AND PRIME MINISTER MAJOR GET ON AIRCRAFT TO FLY TO THE DISTANT CORNERS OF THE WORLD TO PROMOTE THEIR BUSINESS AND INDUSTRY COMPLAINS COMMERCE SECRETARY RON BROWN US LEADERS HAVEN'T BEEN AS AGGRESSIVE BUT THAT HAS CHANGED HE VOWS SUCH FLAGWAVING CAN BE AN ENORMOUS HELP SAYS THE EXPORT DIRECTOR OF ONE LARGE US COMPANY THE ADMINISTRATION ALSO IS GATHERING BETTER MARKET DATA ESPECIALLY FOR NEW EXPORT ASSISTANCE CENTERS IN MIAMI BALTIMORE CHICAGO AND LOS ANGELES OTHERS WILL OPEN SOON THESE ARE SUPPOSED TO HELP SMALLER COMPANIES ONLY 50 MANUFACTURERS NOW PROVIDE HALF OF US EXPORTS THE DATA ALSO WILL GO INTO SPECIFIC MARKETING PLANS FOR THESE 10 BECAUSE US MARKET SHARE IN SOME OF THEM SUCH AS INDONESIA IS SLIPPING WASHINGTON ALSO WILL RELAX MORE EXPORT CONTROLS AS IT DID RECENTLY FOR COMPUTERS IT WANTS US COMPANIES FREE TO EXPORT ALMOST ANYTHING READILY AVAILABLE ON COMMERCIAL TERMS NOW THEY CAN'T FOR EXAMPLE THE US BLOCKS TRUCK SALES TO IRAN DIVERTING UP TO 1 BILLION OF ANNUAL SALES TO SUCH RIVALS AS VOLVO AND MITSUBISHI THERE ARE ALSO HINTS THAT HUMANRIGHTS SANCTIONS MAY BECOME LESS STRINGENT ALTHOUGH MR GARTEN WARNS THAT NO US ADMINISTRATION CAN EVER BE TOTALLY MERCANTILIST ABOUT THEM THE OVERALL GOAL IS A MORE COHERENT LONGERTERM EXPORT STRATEGY THAN HAS BEEN THE US HABIT WASHINGTON ASSUMES IT CAN'T ASSIST MUCH IN THE MATURE EUROPEAN ECONOMY AND JAPAN WON'T BE A GREAT BONANZA EVEN IF TRADE BARRIERS FALL BUT IT SEES ENORMOUS OPPORTUNITIES ELSEWHEREPLUS WAYS TO HELP EXPLOIT THEM 9402110205 940211 INTERNATIONAL JAPANESE BUDGET FOR COMING YEAR AIMS TO LIFT GROWTH BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN UNVEILED A 675 BILLION BUDGET FOR THE FISCAL YEAR STARTING THIS APRIL AIMED AT STIMULATING THE NATION'S BATTERED ECONOMY IT IS LIKELY TO BE ONLY THE FIRST OF SEVERAL SPENDING PACKAGES FROM THE GOVERNMENT THE BUDGET WHICH STILL NEEDS PARLIAMENTARY APPROVAL REVEALS JAPAN'S CONFLICTING GOALS OF BOOSTING ITS ECONOMY WHILE KEEPING DEBT DOWN THERE IS SMALL GROWTH IN MOST OUTLAYS INCLUDING DEFENSE AND OVERSEAS AID THE ONLY MAJOR GROWTH IS IN PUBLICWORKS SPENDING WHICH IS EARMARKED TO RISE TO 111 TRILLION YEN 1024 BILLION A 30 INCREASE FROM A YEAR EARLIER IF SPECIAL PROJECTS ARE INCLUDED IT'S RELATIVELY TIGHT SAYS TAKASHI OSHIO ECONOMIST AT JP MORGAN & CO EVERY EXPENDITURE ITEM IS RESTRICTIVE COMPARED TO LAST YEAR EXCEPT FOR PUBLIC WORKS THE BUDGET PROJECTS A SHARP REVENUE SHORTFALL BECAUSE OF TAX CUTS DESIGNED TO PROMOTE A CONSUMERLED BUSINESS RECOVERY AS A RESULT THE GOVERNMENT EXPECTS TO ISSUE 314 TRILLION YEN IN DEFICITFINANCING BONDS NEXT YEAR THE FIRST TIME IN FIVE YEARS THAT JAPAN HAS ISSUED DEFICIT BONDS IF THE PRIVATE ECONOMISTS ARE RIGHT THEN LATER THIS YEAR A THREE TRILLION TO FOUR TRILLION YEN SHORTFALL CAN'T BE RULED OUT MR OSHIO SAYS THAT MEANS SUPPLEMENTAL BUDGETS AND ADDITIONAL BOND ISSUANCES AND POSSIBLY HIGHER JAPANESE INTEREST RATES LUCKILY INFLATION IS UNLIKELY TO BE A MAJOR WORRY MOST ECONOMISTS SAY A SUPPLEMENTAL BUDGET WOULDN'T BE A MAJOR SURPRISE POSTWAR JAPAN HAS NEVER GONE A YEAR WITHOUT ONE THE BUDGET CONTAINS SOME UNUSUAL FINANCING SCHEMES TO ACHIEVE ITS REVENUE TARGETS THE GOVERNMENT WILL FOR EXAMPLE ACCELERATE A LOANREDEMPTION PLAN BUT WILL ISSUE BONDS TO FUND THE LOCAL GOVERNMENTS THAT HAVE TO REPAY THEIR NATIONAL LOANS FASTER THE JAPANESE BUDGET USUALLY COMES OUT IN DECEMBER BUT IT WAS DELAYED THIS YEAR BY DEBATE IN THE DIET OVER POLITICAL REFORM THE DELAY MEANS THE BUDGET WON'T REACH PARLIAMENT BEFORE MARCH AND TINKERING AND DEBATES LIKELY WILL DELAY PASSAGE UNTIL MAY THAT IS WHY JAPAN'S SIX TRILLION YEN IN NATIONAL AND LOCAL TAX CUTS ANNOUNCED EARLIER THIS WEEK THOUGH RETROACTIVE TO JAN 1 WON'T REACH CONSUMERS UNTIL JUNE OR JULY THE GOVERNMENT YESTERDAY ALSO APPROVED A THIRD SUPPLEMENTAL BUDGET FOR THE CURRENT FISCAL YEAR VALUED AT 218 TRILLION YEN INCLUDING 15 TRILLION YEN FOR PUBLIC WORKS WHICH SHOULD TIDE THE GOVERNMENT OVER UNTIL THE NEXT YEAR'S BUDGET KICKS IN THE SUPPLEMENTAL BUDGET WILL BE INTRODUCED TO PARLIAMENT NEXT WEEK 9402110204 940211 WHO'S NEWS GRANCARE INC GRANCARE INC CULVER CITY CALIF GARY U ROLLE 52 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OPERATOR OF LONGTERM HEALTHCARE FACILITIES MR ROLLE WHO IS EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF TRANSAMERICA CORP'S OCCIDENTAL LIFE INSURANCE CO UNIT FILLS THE VACANCY CREATED WHEN ROY E CHRISTENSEN 60 RESIGNED LAST MONTH 9402110203 940211 WHO'S NEWS NUEVO ENERGY CO NUEVO ENERGY CO HOUSTON ROBERT L GERRY III PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED VICE CHAIRMAN OF THE BOARD OF THIS OIL AND NATURALGAS COMPANY AND ITS MANAGEMENT COMPANY TORCH ENERGY ADVISORS INC A UNIT OF TORCHMARK CORP MICHAEL D WATFORD 40 YEARS OLD SUCCEEDED MR GERRY WHO IS 56 MR WATFORD FORMERLY PRESIDENT OF TORCH ENERGY MARKETING INC A UNIT OF TORCH ENERGY ADVISORS WAS ALSO NAMED A DIRECTOR INCREASING THE NUMBER OF BOARD MEMBERS TO NINE 9402110202 940211 DJ EQUITY INDEX DELETION NEW YORK HCAHOSPITAL CORP OF AMERICA IS BEING DELETED FROM THE HEALTHCARE PROVIDERS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY HCA MERGED WITH COLUMBIA HEALTHCARE CORP WHICH IS IN THE SAME INDUSTRY GROUP THE COMBINED COMPANIES NAMED COLUMBIA HCA HEALTHCARE CORP REMAIN IN THE INDEX 9402110201 940211 WHO'S NEWS TRW INC TRW INC CLEVELAND RICHARD W POGUE 65 YEARS OLD WAS NAMED A DIRECTOR OF THIS COMPANY INCREASING THE BOARD'S SIZE TO 15 MEMBERS MR POGUE IS A SENIOR PARTNER AT THE CLEVELAND LAW FIRM OF JONES DAY REAVIS & POGUE TRW PROVIDES HIGHTECH PRODUCTS AND SERVICES TO THE AUTOMOTIVE AEROSPACE AND DEFENSE INDUSTRIES 9402110200 940211 THURSDAY'S MARKETS RATE WORRIES SEND STOCKS BONDS LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS' NERVOUSNESS ABOUT RISING INTEREST RATES KNOCKED STOCK PRICES LOWER BOND PRICES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLID 3658 POINTS TO 389534 STANDARD & POOR'S 500STOCK INDEX DROPPED 384 TO 46893 AND THE NASDAQ COMPOSITE INDEX LOST 311 TO 78342 THE MARKET WAS WEAKENED AT MIDDAY WHEN ELAINE GARZARELLI A WELLKNOWN ANALYST AT LEHMAN BROTHERS SAID A 4 TO 7 CORRECTION IS POSSIBLE ALTHOUGH SHE REMAINS BULLISH A PARTIAL RECOVERY GAVE WAY TO A LATE ROUND OF SELLING THAT LEFT THE INDUSTRIALS NEAR THE DAY'S LOW WEAKENING BOND PRICES IN THE FINAL HOUR OF STOCK TRADING SPARKED THE SELLOFF ANALYSTS SAID STOCKMARKET INVESTORS MOVED IN TO POCKET PROFITS ON MANY HIGHFLYING ECONOMICALLY SENSITIVE STOCKS AUTO AND HEAVYMACHINERY MANUFACTURERS WERE AMONG THE STOCKS HIT THE WORST THOSE ARE THE CYCLICALS THAT HAVE BEEN THE BIGGEST WINNERS NOT JUST OVER THE PAST FEW MONTHS BUT THE PAST FEW YEARS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH INTEREST RATES ROSE ACROSS THE BOARD EVEN AS THE TREASURY'S AUCTION OF 11 BILLION IN 30YEAR BONDS WAS LARGELY SUCCESSFUL BUT STOCK AND BOND INVESTORS REMAIN JITTERY ABOUT TODAY'S RELEASE OF JANUARY WHOLESALE PRICE DATA A LARGERTHANEXPECTED JUMP COULD BATTER BOTH MARKETS MR SOLLOWAY SAID ANOTHER SMALL RISE IN SHORTTERM RATES IS POSSIBLE SOON BUT ADDED HE DOESN'T THINK THE FEDERAL RESERVE WILL PUSH THEM UP THAT FAR OR FAST IN THE NEXT NINE TO 12 MONTHS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 016 TO 11580 IN MAJOR MARKET ACTION STOCK PRICES DECLINED VOLUME TOTALED 325760000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1311 ISSUES FELL AND 811 ROSE THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17533 MARKS AND 10815 YEN COMPARED WITH 17585 MARKS AND 10835 YEN WEDNESDAY 9402110199 940211 SCUDDER PICKS ALLAN TO LEAD MORE FUNDS AS WELL AS JAPAN FUND NEW YORK ELIZABETH J ALLAN MANAGER OF JAPAN FUND WAS NAMED LEAD MANAGER OF TWO MORE STOCK MUTUAL FUNDS ADVISED BY SCUDDER STEVENS & CLARK INC MS ALLAN SUCCEEDS FUND MANAGER ANDREW ECONOMOS WHO LEFT SCUDDER MS ALLAN WILL CONTINUE TO BE LEAD PORTFOLIO MANAGER OF THE INVESTMENT TEAM RUNNING JAPAN FUND WHICH IS MANAGED BY SCUDDER SHE WILL ALSO TAKE THE LEAD MANAGER ROLE AT SCUDDER PACIFIC OPPORTUNITIES FUND WHICH INVESTS IN PACIFIC RIM COUNTRIES OTHER THAN JAPAN SCUDDER MUTUAL FUNDS ARE RUN BY MANAGEMENT TEAMS WITH THE LEAD PORTFOLIO MANAGER USUALLY MAKING THE FINAL DECISION ON BUYING AND SELLING STOCKS MS ALLAN WILL ALSO LEAD THE TEAM RUNNING SCUDDER NEW ASIA FUND A CLOSEDEND OR PUBLICLY TRADED STOCK FUND WHICH INVESTS IN ASIAN COUNTRIES INCLUDING JAPAN 9402110198 940211 INTERNATIONAL OLYMPIC AIRWAYS TO GET LOAN ATHENS GREECE OLYMPIC AIRWAYS THE STATEOPERATED NATIONAL CARRIER WILL RECEIVE A 142 MILLION BANK LOAN TO COVER A GROWING DEFICIT IN ITS 1994 OPERATING BUDGET NEWSPAPERS REPORTED THAT THE LOAN GRANTED BY THREE STATEOWNED BANKS WILL COVER AN EXPECTED DEFICIT IN OLYMPIC'S OPERATING BUDGET FROM DECEMBER 1993 UNTIL THE END OF APRIL 9402110197 940211 INITIAL JOBLESS CLAIMS DROPPED TO 366000 IN MOST RECENT WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE DROPPED 47000 IN THE WEEK ENDED FEB 5 TO 366000 THE LABOR DEPARTMENT SAID THE BIG DROP IN CLAIMS FOLLOWS A LARGE RISE THE PREVIOUS WEEK WHICH MANY ANALYSTS SAY PROBABLY WAS DUE TO EARTHQUAKERELATED LAYOFFS IN CALIFORNIA AND COLD WEATHERINDUCED CONSTRUCTION CUTBACKS ACROSS MUCH OF THE NATION HOWEVER MARILYN SCHAJA MONEY MARKET ANALYST FOR DONALDSON LUFKIN & JENRETTE SAID THE RECENT TREND IN UNEMPLOYMENT CLAIMS IS STILL DISTURBING SHE NOTED THAT CLAIMS HAVE BEEN STUCK ABOVE 350000 SINCE THE BEGINNING OF THE YEAR AFTER RANGING AROUND 330000 IN LATE SUMMER THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER MARKER OF LABORMARKET CONDITIONS ROSE TO 377250 IN THE LATEST REPORTING WEEK FROM 375000 THE WEEK BEFORE THE FIGURES HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS 9402110196 940211 ROYAL APPLIANCE SAYS SHAREHOLDERS' LAWSUITS ARE DISMISSED BY COURT CLEVELAND ROYAL APPLIANCE MANUFACTURING CO SAID SHAREHOLDER SUITS FILED AGAINST THE COMPANY AND ITS OFFICERS RELATING TO PUBLIC EARNINGS ESTIMATES MADE BY ROYAL WERE DISMISSED BY A FEDERAL COURT ACCORDING TO ROYAL MAKER OF THE DIRT DEVIL LINE OF VACUUM CLEANERS THE LAWSUITS ALLEGED THAT THE COMPANY HAD MADE MISLEADING PUBLIC COMMENTS ABOUT EARNINGS PROJECTIONS FOR 1992 THE US DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO DISMISSED THE CASE SAYING THAT ROYAL'S STATEMENTS READ IN CONTEXT WOULDN'T HAVE MISLED INVESTORS BECAUSE THE COMPANY MADE INVESTORS AWARE OF THE RISKS ROYAL SAID 9402110195 940211 CANADA STEEL OUTPUT INCREASES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 266846 METRIC TONS IN THE WEEK ENDED FEB 5 A 13 INCREASE FROM 235616 TONS THE PREVIOUS WEEK AND A 24 INCREASE FROM 260617 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS FOR THE YEAR TO DATE PRIMARY STEEL OUTPUT TOTALED 1269984 TONS A 62 DECLINE FROM 1354324 TONS A YEAR EARLIER 9402110194 940211 TECHNOLOGY TANDY CORP ESTIMATES SALES PROFIT STRENGTH BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL ONE YEAR AFTER MOVING TO SHED ITS UNPROFITABLE COMPUTERMANUFACTURING OPERATIONS TANDY CORP IS ON THE REBOUND WITH STRONG FOURTHQUARTER EARNINGS AND PREDICTIONS OF A SURGE IN SALES FOR 1994 JOHN V ROACH CHAIRMAN OF THE FORT WORTH TEXAS CONSUMERELECTRONICS RETAILER SAID IN AN INTERVIEW THAT TANDY EXPECTS TO REPORT FOURTHQUARTER EARNINGS FROM OPERATIONS OF ABOUT 102 A SHARE UP 21 FROM 84 CENTS A YEAR EARLIER HE SAID THE FOURTHQUARTER RESULTS ALSO INCLUDED A 20CENTASHARE GAIN FROM THE COMPLETION OF THE COMPANY'S DIVESTITURE PROGRAM THAT OPERATINGEARNINGS ESTIMATE ON THE HIGH SIDE OF ANALYSTS' ESTIMATES CAPS A TURNAROUND YEAR FOR THE PARENT OF THE RADIO SHACK ELECTRONICS CHAIN WHICH SOLD ITS COMPUTERMANUFACTURING BUSINESS TO AST RESEARCH INC LAST YEAR AND HAS SINCE FOCUSED ITS EFFORTS ON ELECTRONICS RETAILING TANDY HAS UNDERGONE A METAMORPHOSIS SAID ROBERT ROTH AN ANALYST AT MERRILL LYNCH IN NEW YORK THEY REALLY ARE SHAKING UP THE COMPANY IN ADDITION TO SPIFFING UP RADIO SHACK WITH REVAMPED FLOOR PLANS AND A SLEW OF NEW SERVICE OFFERINGS TANDY HAS TAPPED INTO THE BOOM IN HOME PERSONAL COMPUTING THROUGH ITS COMPUTER CITY CHAIN OF HIGHTECH SUPERSTORES A THIRD CHAIN CALLED THE INCREDIBLE UNIVERSE SELLS HOME APPLIANCES AND OTHER ELECTRONICS AND MR ROACH SAYS HAS BENEFITED FROM A SPURT OF NEW HOME SALES THAT HAS INCREASED DEMAND FOR REFRIGERATORS DISHWASHERS AND OTHER HOME FURNISHINGS MR ROACH SAID CONTINUING STRONG SHOWINGS AT ALL THREE CHAINS COULD PUSH 1994 SALES UP 30 FROM THE 41 BILLION GENERATED LAST YEAR A FORECAST WELL ABOVE THE 19 SALES GAIN PREDICTED BY MOST TANDY WATCHERS MR ROACH NOTED THAT THE SALES PREDICTIONS INCLUDE A CONTINUING TURNAROUND AT RADIO SHACK WHICH HAS SEEN ITS SAMESTORE MONTHLY SALES RECOVER FROM NO YEARTOYEAR GROWTH THIS TIME LAST YEAR TO ABOUT 7 TODAY LEONARD ROBERTS RADIO SHACK'S PRESIDENT SAID THE UNIT WILL LAUNCH A NEW GIFTDELIVERY PROGRAM ON FATHER'S DAY AND WILL SOON BEGIN TESTMARKETING A SERVICE OFFERING INSTORE REPAIR OF ELECTRONICS FOR THE YEAR MR ROACH SAID TANDY EXPECTS TO REPORT EARNINGS FROM OPERATIONS OF ABOUT 242 A SHARE COMPARED WITH 214 A SHARE A YEAR EARLIER TANDY'S STOCK WHICH SLIPPED TO AS LOW AS 25 A SHARE THIS TIME LAST YEAR CLOSED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AT 4450 A SHARE DOWN 75 CENTS OR 17 9402110193 940211 WHO'S NEWS GUARANTY NATIONAL CORP GUARANTY NATIONAL CORP ENGLEWOOD COLO DENNIS J LACEY 40 YEARS OLD WAS NAMED TO THIS INSURANCE COMPANY'S BOARD INCREASING THE TOTAL NUMBER OF DIRECTORS TO EIGHT MR LACEY IS PRESIDENT AND CHIEF EXECUTIVE OF CAPITAL ASSOCIATES INC A COLORADOBASED FINANCIAL SERVICES COMPANY 9402110192 940211 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED FEB 4 ACCOUNTED FOR 7 OR AN AVERAGE 234 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 122 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 375 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 401 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 552 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 434 WAS FOR THEIR CUSTOMERS THIS WAS THE SECOND CONSECUTIVE WEEK THAT FIRMS' PRINCIPAL TRADING EXCEEDED 50 OF OVERALL ACTIVITY AN ADDITIONAL 14 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES COOPER NEFF NOMURA SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS MORGAN STANLEY EXECUTED MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9402110191 940211 CONTINENTAL AIRLINES IN PACIFIC HOUSTON CONTINENTAL MICRONESIA THE PACIFIC DIVISION OF CONTINENTAL AIRLINES SAID IT REQUESTED US DEPARTMENT OF TRANSPORTATION APPROVAL TO BEGIN DAILY SERVICE BETWEEN THE US AND VIETNAM THE SERVICE WOULD OPERATE FROM GUAM WHERE CONTINENTAL MICRONESIA HAS ITS HUB AND CONTINUE TO VIETNAM'S HO CHI MINH CITY FOUR DAYS A WEEK AND HANOI THREE DAYS A WEEK CONTINENTAL SAID IT COULD FEED TRAFFIC FROM 65 CITIES THROUGH HOUSTON LOS ANGELES NEWARK NJ HONOLULU AND SAN FRANCISCO TO GUAM AND THEN TO VIETNAM 9402110190 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE THE NEXT GENERATION BEYOND ARDIS BEYOND RAM BEYOND CELLULAR THERE ARE PCS AND SATELLITE NETWORKS BY GAUTAM NAIK CELLULAR AND WIRELESS DATA NETWORKS STILL HAVE PLENTY OF RAPID GROWTH AHEAD OF THEM BUT TELECOMMUNICATIONS COMPANIES ARE ALREADY BETTING BILLIONS OF DOLLARS ON THE NEXT GENERATION OF WIRELESS TECHNOLOGY PERSONAL COMMUNICATIONS SERVICES AND SATELLITE NETWORKS THE NEW TECHNOLOGIES EXPECTED TO BECOME AVAILABLE IN 1996 OR BEYOND SHOULD COMPETE WITH THE ARDIS AND RAM MOBILE NETWORKS IN TRANSMITTING DATA AND WITH DIGITAL FORMS OF CELLULAR PHONES IN SENDING BOTH VOICE AND DATA RELIABLY BUT BEFORE THEY CAN GET TO THAT POINT THEIR BACKERS MUST MEET SEVERAL BIG CHALLENGES INCLUDING FUNDING AND BUILDING MULTIBILLIONDOLLAR SYSTEMS AND OVERCOMING COMPETITION FROM EXISTING NETWORKS ESPECIALLY CELLULAR COMPANIES MOREOVER BECAUSE THE POTENTIAL PAYOFF LOOKS SO ALLURING SO MANY COMPANIES WANT IN THAT A SHAKEOUT APPEARS INEVITABLE THIS SPRING THE FEDERAL COMMUNICATIONS COMMISSION WILL AUCTION FREQUENCIES FOR PERSONAL COMMUNICATIONS SERVICES OR PCS TO THE REGIONAL BELL PHONE COMPANIES LONGDISTANCE CARRIERS AND A HOST OF OTHER TELECOMMUNICATIONS COMPANIES ANALYSTS SAY THE BIDDING COULD YIELD 10 BILLION AND THE FCC IS EXPECTED TO AUCTION LICENSES LATER IN THE YEAR FOR SATELLITEBASED PHONE SERVICES WHICH ARE MAINLY BEING SOUGHT BY A DOZEN LARGE COMPANIES HERE'S A LOOK AT THE TWO TECHNOLOGIES' WORKINGS AND PROSPECTS PCS DEVELOPERS ARE IN EFFECT REINVENTING CELLULAR THE TECHNOLOGY IS EXPECTED TO BOUNCE SIGNALS BETWEEN TRANSMISSION MICROCELLS SIMILAR TO THE CELLS USED BY CONVENTIONAL CELLULAR OPERATORS ONLY SMALLER AND MORE CLOSELY SPACED IN SOME CASES JUST A FEW HUNDRED FEET APART THE TECHNOLOGY'S PROPONENTS SAY THIS WILL ENABLE PCS PHONES TO BE SMALLER AND LESS EXPENSIVE THAN CELLULAR PHONES SINCE THEY WON'T HAVE TO BE AS POWERFUL POCKET PHONES THAT CAN BE USED ANYWHERE ANOTHER DIFFERENCE PCS SYSTEMS WILL OPERATE AT HIGHER FREQUENCIES WHERE THE SPECTRUM ISN'T SO CROWDED THE FCC AWARDED THE TECHNOLOGY A WIDER SLICE OF FREQUENCIES THAN CELLULAR MORE SPECTRUM SHOULD ALLOW PROVIDERS TO OFFER A WIDER RANGE OF SERVICES EVENTUALLY INCLUDING VIDEO AND MULTIMEDIA PCS ALSO WILL BE ALL DIGITAL FROM THE OUTSET DESIGNED FOR SENDING DATA INCLUDING FAXES AS WELL AS VOICE THAT WILL MAKE IT SUITABLE FOR USE WITH PERSONAL DIGITAL ASSISTANTS OR PDAS THE SMALL ORGANIZERS/COMMUNICATORS THAT HAVE BEGUN APPEARING ON THE MARKET BUT THE CELLULAR INDUSTRY AND SOME ANALYSTS ARGUE THAT BY THE TIME PCS BECOMES WIDELY AVAILABLE IN THREE TO FIVE YEARS THE DIFFERENCES BETWEEN THE TWO TECHNOLOGIES WILL NARROW CONSIDERABLY CELLULAR COMPANIES NOW USE ANALOG EQUIPMENT BUT THEY ARE STARTING TO INSTALL DIGITAL GEAR FOR BOTH VOICE AND DATA TRANSMISSION THAT WILL INCREASE THEIR SYSTEMS' RELIABILITY AND CAPACITY AND CONTINUED SHRINKING OF SIZE AND COST COULD ENABLE CELLULAR PHONES TO RIVAL PCS PHONES THESE TRENDS WILL MEAN THERE'S ABSOLUTELY NOTHING THAT CAN BE DONE ON PCS THAT CAN'T BE DONE ON DIGITAL CELLULAR SAYS JOHN STUPKA CHAIRMAN AND CHIEF EXECUTIVE OF SOUTHWESTERN BELL MOBILE SYSTEMS THE CELLULAR UNIT OF SOUTHWESTERN BELL CORP PCS IS JUST MORE CELLULAR EVEN SO SOUTHWESTERN BELL AND MANY OTHER COMPANIES THAT PROVIDE CELLULAR SERVICE DON'T WANT TO BE LOCKED OUT OF THE NEW TECHNOLOGY THEY PLAN TO BID FOR PCS LICENSES AND COMPANIES THAT MISSED OUT ON CELLULAR ARE PREPARING FOR THE PCS AUCTION MCI COMMUNICATIONS CORP HAS TOLD ANALYSTS IT MAY SPEND MORE THAN 2 BILLION ON LICENSES BUT MCI AND OTHER BIG PCS PROPONENTS WHICH HAD ASKED THE FCC TO AUCTION SEVERAL NATIONAL PCS LICENSES PROVIDING A WIDE REACH SUFFERED A SETBACK WHEN THE AGENCY DECIDED TO AWARD LICENSES REGIONALLY THAT MEANS MCI MUST TAKE TIME AND MONEY TO STITCH TOGETHER A CONSORTIUM OF REGIONAL LICENSE HOLDERS AFTER COMPANIES WIN LICENSES THEY MUST CLEAR SEVERAL OTHER HURDLES ONE IS COST MCI ESTIMATES THAT ITS PLAN TO DEPLOY A PCS SYSTEM REACHING 90 OF THE US POPULATION INVOLVING THE CONSTRUCTION OF THOUSANDS OF MICROCELLS AND THE INSTALLATION OF SWITCHING EQUIPMENT WILL COST A TOTAL OF 10 BILLION OVER 10 YEARS PERHAPS THE HIGHEST HURDLE FOR PCS OPERATORS WILL BE TAKING ON THE CELLULAR INDUSTRY WHICH HAS A 10YEAR HEAD START AND MORE THAN 13 MILLION SUBSCRIBERS BY THE TIME PCS COMES OUT CELLULAR WILL HAVE THREE TO FOUR MORE YEARS TO DEVELOP AND WILL BE EVERYWHERE IN THE CAR IN THE BUILDING IN HOMES SAYS SOUTHWESTERN BELL'S MR STUPKA SOME CELLULAR COMPANIES ARE ALREADY STEPPING UP THEIR MARKETING TO ATTRACT MORE SUBSCRIBERS BEFORE PCS BECOMES AVAILABLE SOUTHWESTERN BELL FOR INSTANCE RECENTLY DROPPED ITS ROAMING CHARGE OF 3 FOR EACH CALL A CUSTOMER MAKES OUTSIDE ITS SERVICE AREA PCS OPERATORS ALSO FACE COMPETITION FROM COMPANIES THAT PROVIDE SPECIALIZED MOBILE RADIO SERVICE OR SMR THE SERVICE WAS LONG USED FOR CLUNKY TWOWAY COMMUNICATIONS IN SUCH AREAS AS TAXI DISPATCHING BUT AN EASING OF FEDERAL RULES WILL ALLOW NEXTEL COMMUNICATIONS INC CENCALL COMMUNICATIONS INC DIAL PAGE INC AND OTHERS TO OFFER VOICE AND DATA SERVICES ON THEIR SMR FREQUENCIES THROUGH THEIR OWN VERSIONS OF WIRELESS PHONES AND THEN THERE WILL BE THE CROWDING AND FRAGMENTATION WITHIN THE PCS MARKET ITSELF THE FCC WILL SELL AS MANY AS SEVEN PCS SLOTS IN EACH CITY BUT BARRY GOODSTADT A CONSULTANT AT ARTHUR D LITTLE IN CAMBRIDGE MASS SAYS MOST CITIES WILL BE ABLE TO SUPPORT ONLY TWO SERVICE PROVIDERS IN ADDITION TO THE TWO INCUMBENT CELLULAR COMPANIES THE RESULT ANALYSTS SAY MANY PCS COMPANIES WILL BE FORCED OUT OF BUSINESS BEFORE THE INDUSTRY SETTLES DOWN WHILE PCS OPERATORS PREPARE FOR THEIR TERRESTRIAL TUSSLE OTHER WIRELESS CONTENDERS PLAN TO CONQUER THE SKIES COMMUNICATIONS SATELLITE CORP MOTOROLA INC TRW INC AND SEVERAL OTHER COMPANIES ARE PREPARING TO PROVIDE WIRELESS PHONE DATA AND FAX SERVICE BY BOUNCING SIGNALS OFF ORBITING SATELLITES THEIR SYSTEMS WILL LINK PHONES COMPUTERS AND PAGERS ALMOST ANYWHERE ON EARTH BUT UNLIKE CELLULAR AND PCS SERVICES WHICH WILL BE PITCHED INCREASINGLY AS REPLACEMENTS FOR CONVENTIONAL PHONES THE SKY PHONES WILL BE TARGETED TO NICHE MARKETS MAINLY GLOBETROTTING EXECUTIVES SOME SKEPTICS ARGUE THAT SATELLITE PHONES WILL HAVE TROUBLE ATTRACTING CUSTOMERS BECAUSE THEY WILL BE MUCH MORE COSTLY THAN CELLULAR SERVICE WHILE OFFERING ONLY SLIGHTLY BROADER REACH THE SKY PHONES' BACKERS HOWEVER ARGUE THAT BECAUSE OF VARYING TECHNOLOGICAL STANDARDS A CUSTOMER WON'T BE ABLE TO USE HIS CELLULAR PHONE IN PARIS AS WELL AS NEW YORK SO THEY SAY SATELLITE PHONES WILL BE USED BY INTERNATIONAL BUSINESS TRAVELERS WHOSE COMPANIES ARE WILLING TO PAY FOR ANYWHERE ANYTIME PHONE SERVICE SATELLITE PHONES WILL ALSO BE MARKETED FOR USE BY RESIDENTS AND TRAVELERS IN RURAL AREAS THAT LACK CELLULAR SERVICE AND IN DEVELOPING COUNTRIES WHERE PHONE SERVICE OF ANY KIND IS LIMITED AS WITH PCS THE COST OF INFRASTRUCTURE WILL BE ENORMOUS YOU HAVE TO SPEND YEARS BUILDING THE SYSTEM WITHOUT GETTING A DOLLAR OF REVENUE SAYS RON MARIO PRESIDENT OF COMSAT MOBILE COMMUNICATIONS YOU HAVE TO STICK YOUR MONEY INTO FIRECRACKERS LAUNCH THEM AND HOPE IT ALL GOES RIGHT COMSAT OWNS ABOUT 25 OF THE INTERNATIONAL MARITIME SATELLITE ORGANIZATION OR INMARSAT A 71NATION GROUP FORMED TO PROVIDE RADIO COMMUNICATION AND LOCATION SERVICES TO SHIPS AT SEA INMARSAT IS EXPECTED TO DECIDE SOON ON THE PARAMETERS OF A SATELLITE SYSTEM IT WILL CREATE AT A COST OF 1 BILLION TO 2 BILLION TO PROVIDE PHONE SERVICE ON HANDHELD UNITS COMSAT AND MOTOROLA HAVE THE MAKINGS OF A NASTY FEUD MOTOROLA OWNS 34 OF IRIDIUM INC AN INTERNATIONAL CONSORTIUM THAT IS BUILDING A 337 BILLION SATELLITE PHONE PROJECT MOTOROLA HAS ASKED REGULATORS TO BLOCK THE INMARSAT PROJECT ARGUING THAT COMSAT AS A QUASIGOVERNMENTAL CONCERN HAS UNFAIR TAX AND LEGAL ADVANTAGES COMSAT'S MR MARIO RESPONDS ALL MOTOROLA IS TRYING TO DO IS KEEP US OUT OF THE MARKET THE TAX ISSUE IS A JOKE THE TWO COMPANIES HAVE OUTLINED SHARPLY DIFFERENT SYSTEMS MOTOROLA PLANS A NETWORK OF 66 SATELLITES THAT WILL CARRY VOICE AND DATA SIGNALS TO AND FROM HANDHELD PHONES COMSAT HOWEVER WILL PROBABLY RELY ON MANY FEWER SATELLITES USING GROUND STATIONS TO FIND THEM MOTOROLA SAYS ITS SYSTEM WILL PROVIDE FASTER AND CLEARER RECEPTION COMSAT ARGUES THAT ITS COSTS WILL BE LOWER INDEED MOTOROLA'S EXPECTED CUSTOMER CHARGES AREN'T FOR THE FAINT OF HEART THE COMPANY PLANS TO SELL ITS SATELLITE PHONES INITIALLY FOR ABOUT 3000 WHILE CALLS WILL COST ABOUT 3 A MINUTE MR NAIK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110189 940211 SMALL STOCK FOCUS RALLY IN SMALLCAP STOCKS BOGS DOWN FOLLOWING DECLINE IN BIG BOARD ISSUES BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE SMALLCOMPANY STOCK RALLY RAN OUT OF STEAM DRAGGED DOWN BY FALLING BIG BOARD ISSUES AND A DROP IN THE PRICE OF THE BELLWETHER TREASURY BOND SMALLCAPITALIZATION ISSUES SAGGED AFTER OPENING HIGHER THE PACE OF THE DECLINE SLOWED AT MIDDAY BUT PRICES WERE UNABLE TO REBOUND SIGNIFICANTLY KEY SMALLCOMPANY INDEXES FINISHED THE DAY JUST OFF THEIR SESSION LOWS TRADERS SAID THE MARKET WAS HURT BY COMMENTS BY ELAINE GARZARELLI LEHMAN BROTHERS' DIRECTOR OF SECTOR ANALYSIS WHO REPEATED HER VIEW ON CABLETV NETWORK CNBC THAT A 4 TO 7 MARKET CORRECTION IS POSSIBLE ALTHOUGH SEVERAL TRADERS NOTED MS GARZARELLI ORIGINALLY MADE THE COMMENTS LAST FRIDAY THE MARKET DIDN'T START TO GET NERVOUS UNTIL HER CNBC APPEARANCE SAID JACK BAYER HEAD OF OVERTHECOUNTER TRADING AT OPPENHEIMER & CO TRADERS SAID INVESTORS ALSO BECAME JITTERY ON NEWS THAT THE FLOW OF MONEY INTO STOCK MUTUAL FUNDS REVERSED ITSELF FOLLOWING FRIDAY'S SELLOFF SPARKED BY THE FEDERAL RESERVE'S TIGHTENING OF MONETARY POLICY THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCAP STOCKS FELL 108 OR 04 TO 26414 THE NASDAQ COMPOSITE INDEX LOST 311 OR 040 TO 78342 ON THE NASDAQ STOCK MARKET DECLINERS LED ADVANCERS 1667 TO 1408 ON TOTAL VOLUME OF 339 MILLION SHARES UP FROM 330 MILLION SHARES WEDNESDAY NATIONAL MARKET VOLUME WAS 284 MILLION SHARES UP FROM 278 MILLION SHARES WEDNESDAY HARVARD INTERNATIONAL TECHNOLOGIES A VANCOUVER BRITISH COLUMBIA MAKER OF FRENCHFRIED POTATO VENDING MACHINES PLUNGED 3 3/8 OR 56 TO 2 5/8 THE AMEXTRADED COMPANY SAID CERTAIN QUALITY PROBLEMS WERE DISCOVERED IN MANY OF ITS MACHINES AS A RESULT SOME FRANCHISEES HAVE DELAYED PAYMENTS TO THE COMPANY THE PAYMENT DELAYS MIGHT FORCE THE COMPANY TO SECURE NEW FINANCING BY MIDMARCH HARVARD SAID PIER 1 IMPORTS FELL 3/4 OR 79 TO 8 3/4 IN BIG BOARD TRADING AFTER THE COMPANY SAID EARNINGS FOR FISCAL 1994 ENDING FEB 26 COULD BE 10 TO 15 BELOW ANALYSTS' ESTIMATES THE FORT WORTH TEXAS RETAILER SAID JANUARY PROFITS WERE HURT IN MORE THAN 60 OF THE COMPANY'S 639 STORES BY SEVERE WEATHER AND THAT THE PATTERN HAS CONTINUED THIS MONTH THE COMPANY ALSO SAID 20 OF ITS CALIFORNIA STORES WERE AFFECTED BY THE JAN 17 EARTHQUAKE NEWS THAT DIME FINANCIAL WILL SUBSTANTIALLY BOOST RESERVES FOR LOAN LOSSES AND REAL ESTATEAND AS A RESULT RECORD A SUBSTANTIAL LOSS FOR THE FOURTH QUARTER AND YEARPUSHED ITS STOCK DOWN 7/8 OR 12 TO 6 5/8 THE WALLINGFORD CONN COMPANY SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF ABOUT 520 A SHARE COMPARED WITH NET INCOME OF NINE CENTS A YEAR EARLIER NL INDUSTRIES A NYSETRADED HOUSTON SPECIALTY CHEMICAL COMPANY FELL 1 OR 10 TO 8 5/8 AFTER REPORTING A FOURTHQUARTER LOSS OF 44 CENTS A SHARE COMPARED WITH A 34CENTS LOSS IN THE YEAREARLIER PERIOD LIBERTY TECHNOLOGIES A DIAGNOSTIC SYSTEMS COMPANY BASED IN CONSHOHOCKEN PA FELL 1 OR 11 TO 8 AFTER IT POSTED FOURTHQUARTER EARNINGS OF 12 CENTS A SHARE DOWN FROM 15 CENTS A YEAR EARLIER BRODERBUND SOFTWARE ROSE 4 5/8 OR 11 TO 45 7/8 ON NEWS THAT ELECTRONIC ARTS WILL ACQUIRE THE NOVATO CALIF SOFTWARE COMPANY THE BUYOUT WILL INVOLVE A STOCK SWAP VALUED AT 400 MILLION SINCE SMALLCOMPANY STOCKS BEGAN RALLYING IN LATE DECEMBER ONE OF THE HALLMARKS OF THE MARKET HAS BEEN INVESTORS' FOCUS ON COMPANY FUNDAMENTALS RATHER THAN ON BROAD INDUSTRY OR MARKET TRENDS EVEN AFTER FRIDAY'S SELLOFF SMALLCOMPANY STOCKS WERE ABLE TO REBOUND SMARTLY DRIVEN BY STRONG EARNINGS REPORTS AND OPTIMISM ABOUT THE ECONOMY JERRY MULLINS DEAN WITTER REYNOLDS' HEAD OF OTC TRADING SAID THAT EVEN THOUGH THERE WERE BROADBASED LOSSES AMONG SMALLCAP STOCKS AND MANY ISSUES ENDED THE DAY NEAR THEIR LOWS HE SEES UNDERLYING STRENGTH IN THE SMALLCOMPANY SECTOR A LOT OF STOCKS WERE NOT COMING IN FOR SALE MR MULLINS SAID HE SAID THE PACE OF SELLING DIDN'T PICK UP MOMENTUM AS THE DAY WENT ON IF PEOPLE WERE CONVINCED THE MARKET WAS GOING LOWER THERE WOULD HAVE BEEN MORE SELLERS HE SAID 9402110188 940211 BUSINESS BRIEFS ANNTAYLOR STORES CORP PLANS TO ESTABLISH A NEW NATIONAL DISTRIBUTION CENTER IN LOUISVILLE KY AND CLOSE ITS EXISTING CENTER IN NEW HAVEN CONN IN 1995 CORNING INC AND VITRO SA OF MEXICO COMPLETED A PLAN TO END THEIR CROSSOWNERSHIP IN TWO CONSUMERPRODUCT COMPANIES CORNING VITRO CORP IN THE US AND VITRO CORNING SA IN MEXICO THE TWO COMPANIES NOW OWN 100 OF THEIR RESPECTIVE CONSUMERPRODUCTS BUSINESSES ACX TECHNOLOGIES INC AGREED TO ACQUIRE GRAVURE INTERNATIONAL CAPITAL CORP OF CANADA FOR ABOUT 34 MILLION IN CASH AND STOCK IT WILL ALSO ASSUME CERTAIN DEBT OF GRAVURE BRINGING THE VALUE OF THE TRANSACTION TO 68 MILLION CRI LIQUIDATING REIT INC SOLD ABOUT 20 OF ITS MULTIFAMILY MORTGAGE PORTFOLIO LAST WEEK FOR 487 MILLION ARROW ELECTRONICS INC AGREED TO ACQUIRE THS ELEKTRONIK AB STOCKHOLM AND ITS UNITS TERMS WEREN'T DISCLOSED 9402110187 940211 INTERNATIONAL PRIVATESECTOR BANKS IN FRANCE VOICE THEIR ANGER ABOUT STATEOWNED RIVALS BY PETER GUMBEL AND CHARLES FLEMING STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS JUST WEEKS AFTER RECEIVING A STATE HANDOUT OF NEARLY 170 MILLION A MONEYLOSING FRENCH CREDIT INSTITUTE IS AGGRESSIVELY UNDERCUTTING ITS BIGGER PRIVATESECTOR RIVALS IN THE LENDING MARKETPLACE AS THE GOVERNMENT IS PREPARING A MUCH LARGER AID PACKAGE FOR CREDIT LYONNAIS THE NATION'S BIGGEST BANK ANGRY RIVALS ARE POINTING TO THIS SMALLER CASE AS AN EXAMPLE OF THE PERNICIOUS EFFECTS OF FRENCH STATE MEDDLING IN BUSINESS BY WRITING BIG CHECKS FOR STRUGGLING STATEOWNED COMPANIES CRITICS SAY THE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR IS DISTORTING FAIR COMPETITION AND REWARDING BAD MANAGEMENT AT THE EXPENSE OF THE PRIVATE SECTOR IT'S UNTENABLE FOR THOSE WHO MANAGE THEIR BANKS WELL GRIPES A TOP EXECUTIVE AT ONE OF FRANCE'S LARGEST PRIVATESECTOR BANKS ADDS AN OFFICIAL AT ANOTHER BANK TAXPAYERS' MONEY IS BEING USED TO DISTORT THE MARKET ECONOMICS MINISTER EDMOND ALPHANDERY ANNOUNCED IN LATE DECEMBER THAT THE GOVERNMENT WOULD INJECT ONE BILLION FRANCS 1676 MILLION IN NEW CAPITAL INTO CREDIT D'EQUIPEMENT DES PETITES ET MOYENNES ENTREPRISES A STATEOWNED LENDING INSTITUTION KNOWN AS CEPME THE INSTITUTION ISN'T TECHNICALLY A BANK BECAUSE IT DOESN'T TAKE DEPOSITS BUT IT DOES COMPETE WITH BANKS ON LONGTERM LOANS ESPECIALLY TO SMALL AND MEDIUMSIZED COMPANIES AND CLAIMS TO HOLD 15 TO 20 OF THAT MARKET THE STATE BAILOUT CAME AT THE END OF THE WORST YEAR IN CEPME'S 12YEAR HISTORY AFTER MAKING HEAVY PROVISIONS FOR SOURED LOANS IT IS EXPECTED TO REPORT A NET LOSS FOR 1993 OF BETWEEN 700 MILLION AND 800 MILLION FRANCS FOLLOWING AN OPERATING LOSS OF 200 MILLION FRANCS IN 1992 BUT BOOSTED BY THE CAPITAL INJECTION CEPME QUICKLY EMBARKED ON A NEW ROUND OF AGGRESSIVE LENDING OFFERING CLIENTS RATES ON LOANS THAT ARE AS MUCH AS 50 BASIS POINTS OR HALF OF A PERCENTAGE POINT BELOW THE MARKET AVERAGE A CEPME SPOKESMAN PHILIPPE ADAMI SAYS THE BANK IS OFFERING RATES AS LOW AS 69 COMPARED WITH THE MINIMUM OF 735 BEING CHARGED BY ITS RIVALS HE DEFENDS THE CAPITAL INJECTION SAYING IT WAS NEEDED TO RAISE THE INSTITUTION'S CAPITAL RATIO TO WELL ABOVE THE LEVEL REQUIRED UNDER BANKING REGULATIONS AND ALLOWS US TO DEVELOP OUR ACTIVITY AND HELP THE COUNTRY'S ECONOMIC RECOVERY THE EFFECT HAS BEEN QUICKLY FELT BY MAINSTREAM BANKS OFFICIALS SAY THEIR LENDING OFFICERS AROUND THE NATION HAVE BEEN COMPLAINING BITTERLY ABOUT THE DANGERS OF LOSING CREDIT BUSINESS WHICH IS ALREADY LACKLUSTER BECAUSE OF FRANCE'S RECESSION TO CEPME IN A FREE MARKET OTHER BANKS COULD THEORETICALLY RESPOND TO THE CHALLENGE BY LOWERING THEIR OWN RATES BUT IN FRANCE PRIVATESECTOR BANKS ARE HOBBLED BY NUMEROUS RESTRICTIONS FOR EXAMPLE THEY ARE REQUIRED TO PAY FIXED RATES FOR SAVINGS DEPOSITS KEPT IN WHAT ARE KNOWN AS LIVRET A ACCOUNTS ALTHOUGH MARKET INTEREST RATES HAVE BEEN FALLING SHARPLY IN RECENT MONTHS THE GOVERNMENT HAS REFUSED TO CUT RATES ON THESE TRADITIONAL SAVINGS ACCOUNTS FEARING SUCH A MOVE WOULD HURT ITS POPULARITY PRIVATESECTOR BANKERS HERE BELLOW ABOUT THE PROBLEMS OF COMPETING ON THIS UNLEVEL PLAYING FIELD JUST AS SOME US BANKS GRIPED ABOUT THE DISTORTING EFFECT OF WASHINGTON'S RESCUE OF SOME SAVINGS AND LOAN INSTITUTIONS CEPME IS ONE OF SEVERAL FRENCH STATEOWNED FINANCIAL ENTITIES INCLUDING THE NATIONAL POST OFFICE THAT COMPETE WITH BANKS IN SOME AREAS BUT ARE GOVERNED BY DIFFERENT RULES IT'S AS IF WE HAVE A GROUP OF PEOPLE PLAYING CANASTA WHILE OTHERS ARE PLAYING BRIDGE AT THE SAME CLUB SAYS BAUDOUIN PROT EXECUTIVE SENIOR VICE PRESIDENT AT FRANCE'S RECENTLY PRIVATIZED BANQUE NATIONALE DE PARIS SUCH COMPLAINTS ARE GROWING AS THE GOVERNMENT CONSIDERS A RECAPITALIZATION PLAN FOR CREDIT LYONNAIS WHICH HAS PLUNGED INTO THE RED FOLLOWING AN AGGRESSIVE CRITICS SAY RECKLESS INTERNATIONAL EXPANSION STRATEGY THE CHAIRMEN OF BNP AND SOCIETE GENERALE HAVE PUBLICLY COMPLAINED ABOUT THE PROSPECT OF THE GOVERNMENT PICKING UP THE BILL FOR THE MISTAKES MADE BY THEIR STATEOWNED RIVAL BUT GOVERNMENT MEDDLING IN BUSINESS IS A LONGSTANDING TRADITION IN FRANCE AND ONE THAT MR BALLADUR SHOWS FEW SIGNS OF WANTING TO END ALTHOUGH HE HAS RECEIVED PLAUDITS FOR LAUNCHING A BIG PRIVATIZATION CAMPAIGN HIS CONSERVATIVE GOVERNMENT CONTINUES TO PLAY A BIG ROLE IN CORPORATE AFFAIRS AMONG OTHER THINGS MR BALLADUR HAS BEEN TWISTING THE ARMS OF MAJOR COMPANIES NOT TO LAY OFF WORKERS DURING THE CURRENT RECESSION SUCH GOVERNMENT MICROMANAGEMENT OFTEN INFURIATES EMPLOYERS WHO SAY PIECEMEAL TINKERING WITH THE ECONOMY IS NO SUBSTITUTE FOR ACTION TO ADDRESS DEEPER PROBLEMS PARTICULARLY THE RISING COST OF MAINTAINING THE WELFARE SYSTEM THE REAL QUESTION IS HOW LONG CAN WE KEEP GOING WITHOUT TACKLING FUNDAMENTAL REFORMS SAYS FRANCOIS PERIGOT PRESIDENT OF THE NATIONAL EMPLOYERS' ASSOCIATION 9402110186 940211 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS WELCOME TO THE BAZAAR THE LEGAL MARKETPLACE USED TO FUNCTION LIKE A GROCERY STORE WHERE ALL SHOPPERS PAID THE SAME PRICE NOW IT'S BEGINNING TO RESEMBLE A STREET FAIR WHERE SAVVY CUSTOMERS HAGGLE FOR GOOD DEALS AND RUBES ARE ROOKED MANY COMPANIES HAVE LEARNED THAT ATTORNEYS WILL NEGOTIATE FOR VOLUME DISCOUNTS AND OTHER CONCESSIONS BUT OTHER CLIENTS HAVEN'T CAUGHT ON AND INEQUITIES ARE DEVELOPING THE TOUGHER MORE VIGILANT CLIENTS ARE FREQUENTLY PAYING LESS FOR THE SAME LAWYERS MOREOVER PASSIVE CLIENTS MAY NOT JUST BE MISSING OUT ON THE BENEFIT OF THE BARGAIN IN SOME CIRCUMSTANCES THEY MAY BE UNKNOWINGLY UNDERWRITING THE SWEETHEART DEALS GIVEN TO OTHERS JOHN MARQUESS A PHILADELPHIABASED AUDITOR OF LEGAL BILLS REPORTS THAT SEVERAL COMPANIES APPROACHED HIM DURING PAST FEW MONTHS CONCERNED THAT THEY WERE BEING SELECTIVELY OVERCHARGED BY ATTORNEYS WHO PERCEIVED THEM TO BE ASLEEP AT THE SWITCH HE SAYS AUDITS BY HIS COMPANY LEGALGARD TURNED UP EXAMPLES OF LAW FIRMS' PASSING COSTS CHALLENGED BY ONE CLIENT ON TO ANOTHER CLIENT COSTSHIFTING IS ALL OVER THE PLACE MR MARQUESS MAINTAINS I'M NOT SAYING THAT LAW FIRMS HAVE MEETINGS AND TELL THEIR PEOPLE TO SHIFT COSTS I DON'T THINK ANYBODY'S THAT BLATANT HE ADDS BUT THERE ARE SUBTLE WAYS THE MESSAGE GETS COMMUNICATED HE CITES THE EXAMPLE OF A TOP PARTNER WHO REMINDS FELLOW LAWYERS AT A STAFF MEETING THAT HALF THE FIRM'S TOP 20 CLIENTS HAVE ISSUED STRICT GUIDELINES ON LEGAL BILLS WHAT'S REALLY BEING SAID IS THAT THE REMAINING 10 DON'T HAVE A LOT OF CONTROLS AND COSTS COULD BE SHIFTED TO THEM MR MARQUESS SAYS THE ADJUSTMENTS OCCUR NOT ONLY ON TIME SHEETS BUT ALSO ON EXPENSE FORMS AND IN DECISIONS ON HOW HEAVILY TO STAFF A CASE IN A RECENT AUDIT OF LEGAL BILLS TO A LOS ANGELES HEALTHCARE COMPANY THAT HADN'T CLOSELY MONITORED ITS MAJOR OUTSIDE LAW FIRM LEGALGARD FOUND THREE INSTANCES OF INDIVIDUAL LAWYERS BILLING MORE THAN 50 HOURS A DAY ITS PREVIOUS AUDIT OF THE SAME ATTORNEYS FOR A COMPANY THAT HAD A REPUTATION OF BEING MORE VIGILANT TURNED UP NO SUCH PROBLEMS IN AUDITS FOR TWO COMPANIES IN FLORIDA LEGALGARD DETERMINED THAT A MIDSIZED LAW FIRM CHARGED ONE CLIENT 10 CENTS A PAGE FOR PHOTOCOPYING AFTER A HIGHER RATE HAD BEEN CHALLENGED WHILE CHARGING A LESS CONFRONTATIONAL CLIENT 50 CENTS A PAGE IN SACRAMENTO THE AUDITOR FOUND THAT A MIDSIZED LAW FIRM HANDLING DOGBITE LIABILITY CASES FOR SEVERAL SECURITY COMPANIES ASSIGNED TWICE AS MANY LAWYERS AS USUAL TO CASES INVOLVING CLIENTS WHO TYPICALLY DIDN'T WATCH BILLS CLOSELY AMONG THE MOST COMMON IF FAIRLY INNOCUOUS COSTSHIFTING TECHNIQUES IS TAKING A TAXI RIDE HOME AFTER WORKING LATE ON A VARIETY OF MATTERS AND THEN CHARGING THE MOST EASYGOING CLIENT FOR THE WHOLE RIDE SOME LAWYERS WHO HAVE DONE THIS SAY IT'S NOT EASY FOR AUDITORS MUCH LESS CLIENTS TO CATCH THE COST SHIFTERS FEW AUDITORS OR CLIENT COMPANIES ARE EVER IN A POSITION TO COMPARE BILLS FOR SIMILAR WORK FROM THE SAME FIRM THE BEST THAT CLIENTS CAN DO IS BE TOUGH SO AT LEAST YOU'LL KNOW THAT COSTS AREN'T BEING SHIFTED TO YOU SAYS JOHN TOOTHMAN CHAIRMAN OF THE DEVIL'S ADVOCATE AN ALEXANDRIA VA LITIGATION CONSULTING FIRM COMPANIES SHOULD BE ESPECIALLY VIGILANT IF THEY FIT MR TOOTHMAN'S PROFILE OF A SOAKER CLIENT ONE LIKELY TO BE USED TO ABSORB THE COST OF DISCOUNTS OFFERED TO OTHERS THE CLASSIC CANDIDATE A COMPANY THAT'S HANDED A FIRM A BIG PIECE OF LITIGATION UPON WHICH THE COMPANY'S FUTURE DEPENDS LARGE MATTERS ARE TOUGHER FOR CLIENTS TO TRACK CAREFULLY LITIGATION TENDS TO BE LESS FAMILIAR TO COMPANIES THAN TRANSACTIONAL WORK AND LAWYERS CAN SMELL THE FEAR OF A DESPERATE CLIENT MR TOOTHMAN SAYS TO BE SURE CLAIMS OF COSTSHIFTING MAY BE OVERSTATED JONATHAN BELLIS PARTNER IN CHARGE OF THE LAWOFFICE CONSULTING GROUP AT PRICE WATERHOUSE SAYS LEGALBILL AUDITORS MAY BE TEMPTED TO RAISE CLIENTS' FEARS ABOUT COSTSHIFTING FOR SELFSERVING REASONS BUT INTERVIEWS WITH PARTNERS AND ASSOCIATES AT LAW FIRMS ACROSS THE COUNTRY SUGGEST THAT ATTORNEYS AT ALL LEVELS ARE AWARE OF THE PHENOMENON WE'RE TOLD WHICH CLIENTS HAVE GIVEN US A BILLING CAP AND WHICH HAVEN'T SAYS A YOUNG LOS ANGELES LAWYER AND AFTER A WHILE YOU SORT OF GET A SENSE WHICH CLIENTS YOU CAN BILL MORE FREELY ALFRED JT BYRNE A PARTNER AT THE WASHINGTON LAW FIRM PATTON BOGGS & BLOW SAYS HE HASN'T SEEN LAWYERS ACTUALLY HANDING OFF COSTS FROM ONE CLIENT TO ANOTHER BUT HE SAYS THE RISE OF WHAT HE CALLS AD HOC RELATIONSHIP NEGOTIATIONS HAS CERTAINLY ENABLED LARGER AND MORE AGGRESSIVE CONSUMERS OF LEGAL SERVICE TO OBTAIN MUCH MORE FAVORABLE TERMS FROM LAW FIRMS THAN ONESHOT ISOLATED TRANSITORY CLIENTS INDEED IN RECENT YEARS MANY LAW FIRMS HAVE TACITLY ADOPTED MULTITIER BILLING SYSTEMS FOR EXAMPLE CERTAIN FIRMS NOW OFFER LOWER FEES TO CLIENTS OF LONG STANDING WHO TYPICALLY PAY ON TIME THERE'S A SORT OF A CODE MR TOOTHMAN SAYS CLIENTS SHOULD ASK FOR THE MOST FAVORABLE RATE CHARGED FOR SERVICES RENDERED TO LARGE CREDITWORTHY CLIENTS OR THE LOWEST RATE CHARGED BY SUCH PERSONS FOR SIMILAR WORK HE SAYS SUCH TERMS ARE KNOWN INFORMALLY AS MOSTFAVORED NATION CLAUSES AFTER INTERNATIONAL TREATIES BETWEEN COUNTRIES THAT COMMONLY DEAL WITH EACH OTHER SOME MAJOR LEGAL RETAINER AGREEMENTS NOW ROUTINELY INCORPORATE SUCH CLAUSES BUT MR TOOTHMAN SUGGESTS SMALL COMPANIES OR CLIENTS WITH ONLY A LIMITED AMOUNT OF LEGAL WORK SHOULDN'T BE AFRAID TO REQUEST THEM 9402110185 940211 JAPAN'S NIPPONDENSO REPORTS 37 DECLINE IN 1993 PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL TOKYO NIPPONDENSO CO JAPAN'S LARGEST PRODUCER OF ELECTRONIC AND ELECTRICAL PARTS FOR AUTOS REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR 1993 TUMBLED 37 PRETAX PROFIT FELL TO 4163 BILLION YEN 384 MILLION FROM 6579 BILLION YEN IN 1992 NET INCOME DROPPED 43 TO 1973 BILLION YEN FROM 3429 BILLION YEN SALES DECLINED 65 TO 127 TRILLION YEN FROM 1358 TRILLION YEN NIPPONDENSO IS THE SECONDLARGEST COMPANY IN THE TOYOTA MOTOR GROUP EXCEEDED ONLY BY THE FLAGSHIP AUTO MAKER TOYOTA MOTOR CORP IT IS 24 OWNED BY TOYOTA THE EARNINGS DROP WAS THE THIRD STRAIGHT YEAR OF DECLINE FOR THE COMPANY A SPOKESMAN SAID A DECLINE IN DOMESTIC AUTO SALES CUT INTO THE COMPANY'S PROFITABILITY ALSO DAMPING ITS PROFIT WAS THE CONTINUED TENDENCY OF CONSUMERS TO BUY CHEAPER AUTOS WHICH REDUCED SALES OF NIPPONDENSO'S HIGHLY PROFITABLE VALUEADDED AUTOMOTIVE PARTS THE OFFICIAL SAID FOR THE CURRENT YEAR NIPPONDENSO IS PREDICTING PRETAX PROFIT WILL RISE 09 TO 42 BILLION YEN THE SPOKESMAN SAID EFFORTS TO RESTRUCTURE ARE EXPECTED TO BEAR FRUIT AND THE COMPANY SEES DEMAND FOR AUTOMOTIVE PARTS PERKING UP IN THE AUTUMN BUT IT SEES THE CURRENT SEVERE BUSINESS ENVIRONMENT CONTINUING AT LEAST UNTIL APRIL OR MAY 9402110184 940211 BP EARNINGS SANK SHARPLY IN 4TH QUARTER RESTRUCTURING CHARGES CITED FOR SLIDE CEO TERMS RESULTS SATISFACTORY' BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA BRITISH PETROLEUM CO REPORTED A SHARP DROP IN FOURTHQUARTER NET INCOME WHEN IT TOOK HEFTY CHARGES FOR RESTRUCTURING ITS UNPROFITABLE PETROCHEMICAL OPERATIONS AND FOR CLOSING FACILITIES FOR THE ENTIRE YEAR HOWEVER NET TOTALED 113 BILLION 165 BILLION ON A REPLACEMENTCOST BASIS MORE THAN DOUBLE THE 536 MILLION RECORDED FOR 1992 BP SAID FOURTHQUARTER PROFIT DROPPED TO 54 MILLION ON A REPLACEMENT COST BASIS AND AFTER EXCEPTIONAL ITEMS FROM 193 MILLION IN THE FINAL QUARTER OF 1992 EVEN SO DAVID SIMON BP'S CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT THE FOURTHQUARTER RESULTS WERE SATISFACTORY GIVEN THE LEVEL OF OIL PRICES OIL PRICES PLUNGED IN THE FOURTH QUARTER WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECIDED IT WOULDN'T TRY TO PROP UP THE MARKET BY CUTTING OUTPUT FURTHER REPLACEMENTCOST ACCOUNTING EXCLUDES THE IMPACT ON CHANGES IN INVENTORY VALUATIONS BUT THEY ARE REFLECTED IN HISTORIC COST ACCOUNTING A BASIS ON WHICH BP RECORDED A LOSS OF 97 MILLION IN THE FOURTH QUARTER CONTRASTING WITH NET INCOME OF 136 MILLION IN THE FINAL PERIOD OF 1992 OF THE 284 MILLION OF EXCEPTIONAL CHARGES IN THE FOURTH QUARTER 200 MILLION WERE FOR RESTRUCTURING EUROPEAN PETROCHEMICAL OPERATIONS INCLUDING THE CLOSURE OF A FACILITY IN BAGLAN BAY WALES ANOTHER 60 MILLION WERE CHARGED TO CLOSE A REFINERY IN HAMBURG GERMANY ANALYSTS NOTED THAT BP'S CURRENT SHARE PRICE HAS MORE THAN DOUBLED SINCE 1992 WHEN THE COMPANY SLASHED ITS DIVIDEND AND EMBARKED ON BOTH A PROGRAM OF ASSET DISPOSALS TO REDUCE ITS DEBT AND A COSTCUTTING PROGRAM TO IMPROVE ITS PERFORMANCE NONETHELESS MANY ANALYSTS WEIGHING THE SHARE RISE AND THE LOW OIL PRICES SAY THE STOCK IS LOSING ITS ALLURE IN TRADING YESTERDAY BP FELL BACK AFTER INITIAL GAINS SHARES ENDED AT 386 PENCE DOWN 45 PENCE AFTER CLIMBING TO 4065 PENCE EARLIER BP ANNOUNCED A DIVIDEND OF 21 PENCE A SHARE FOR THE FOURTH QUARTER UNCHANGED FROM THE PRECEDING QUARTER AND FROM THE LIKE YEAREARLIER PERIOD THIS BROUGHT THE TOTAL PAYOUT FOR 1993 TO 84 PENCE A SHARE DOWN FROM 105 PENCE FOR 1992 GROUP SALES TOTALED 82 BILLION IN THE FOURTH QUARTER DOWN FROM 98 BILLION A YEAR EARLIER SALES TOTALED 3495 BILLION FOR ALL 1993 UP FROM 3325 BILLION IN 1992 9402110183 940211 CORRECTIONS & AMPLIFICATIONS BLOOMBERG LP'S NAME WAS MISSTATED AS BLOOMBERG PL IN AN ARTICLE YESTERDAY THAT DESCRIBED BLOOMBERG'S PLANS TO LAUNCH A BUSINESSNEWS TELEVISION NETWORK 9402110182 940211 CORPORATE FOCUS AMGEN'S HIGHGEAR REVENUE GROWTH HITS A SLOWDOWN COMPANY PROJECTS MODEST PROFILE BASED ON FATE OF TWO BLOCKBUSTER DRUGS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL THOUSAND OAKS CALIF WHEN THE EARTHQUAKE KNOCKED OUT THE POWER TO AMGEN INC'S SPRAWLING HEADQUARTERS COMPLEX LAST MONTH BACKUP GENERATORS HERE INSTANTLY KICKED IN TO KEEP THE BIOTECHNOLOGY COMPANY'S TWO BLOODCELL GROWTH DRUGS FLOWING WITHOUT A HICCUP BUT AMGEN HAS HAD LESS SUCCESS PREPARING INVESTORS FOR A DIFFERENT KIND OF NATURAL PHENOMENON THE SLOWDOWN IN ITS ONCE EXPLOSIVE GROWTH AFTER 12 YEARS THAT SAW A TINY BIOTECH BOUTIQUE MUSHROOM INTO A GLOBAL PHARMACEUTICAL COMPANY WITH 137 BILLION IN 1993 REVENUE AMGEN THIS YEAR IS LOOKING FOR MORE MODEST REVENUE GROWTH IN THE DOUBLEDIGIT RANGE AFTER COMPANY OFFICIALS SHARED THIS VIEW WITH SECURITIES ANALYSTS DURING A CONFERENCE CALL LAST WEEK THE ANALYSTS TRANSLATED IT INTO A REVENUE GROWTH PROJECTION OF ROUGHLY 15 MORE IN LINE WITH GROWTH AT TRADITIONAL DRUG COMPANIES SUCH AS PFIZER INC OR MERCK & CO THAN AT BIOTECH'S BELLWETHER AFTER ANALYSTS BROADCAST THEIR LOWER 1994 SALES AND PROFIT PROJECTIONS DISAPPOINTED INVESTORS RUSHED FOR THE EXITS SINCE FEB 1 WHEN MARKET JITTERS BEGAN TO SPREAD IN THE HOURS BEFORE THE ANALYSTS' CALL AMGEN SHARES HAVE FALLEN ABOUT 14 FROM 4875 A SHARE A 900 MILLION LOSS IN MARKET VALUE YESTERDAY AMGEN CLOSED AT 4175 DOWN 50 CENTS IN NASDAQ STOCK MARKET TRADING THE SHARES ARE DOWN 85 SINCE LATE 1992 WHEN THE CLINTONS BEGAN TO ATTACK HIGH DRUG PRICES SENDING PHARMACEUTICAL AND BIOTECH COMPANIES' STOCKS INTO A TAILSPIN AMGEN ISN'T LIVING UP TO THE VISION OF UNLIMITED GROWTH THAT PEOPLE WANT SAYS TEENA LERNER A LEHMAN BROTHERS ANALYST AND LONGTIME AMGEN BOOSTER THE NEW REALITY IS THAT AMGEN IS A COMPANY WITH A MORE CONVENTIONAL PROFILE BUT STILL VERY RESPECTABLE GROWTH OF BETWEEN 15 AND 16 THE IMMEDIATE CONCERN IS THAT SALES OF AMGEN'S NEUPOGEN DRUG A CANCER TREATMENT USED AS AN ADJUNCT TO CHEMOTHERAPY AREN'T RISING AS QUICKLY AS EXPECTED FURTHERMORE ITS PROBABLE NEXT NEW PRODUCT CONSENSUS INTERFERON FOR TREATMENT OF HEPATITIS C IS STILL AT LEAST TWO YEARS AWAY AND ISN'T A CLEAR WINNER AND MOST GALLING TO AMGEN SOME FORMER EMPLOYEES AND OTHER CRITICS CHARGE THAT THE COMPANY IS SUFFERING FROM CREEPING BUREAUCRACY AND THE LOSS OF TALENTED SCIENTISTS I WOULDN'T AGREE WITH THAT ASSESSMENT RETORTS GORDON BINDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW FROM SWITZERLAND THERE WAS A TIME WHEN THE CEO KNEW THE NAMES OF ALL THE EMPLOYEES' SPOUSES AND CHILDREN THOSE TIMES ARE GONE NEVER TO RETURN BUT THE FUNDAMENTALS OF OUR CULTURE ARE STILL IN PLACE SOME OUTSIDERS AGREE THAT AMGEN IS DOING EXACTLY WHAT IT SHOULD BE AT THIS STAGE BUILDING ITS LONGTERM COMMERCIAL BASE BY PARTNERING WITH SUCH SMALLER BIOTECH COMPANIES AS REGENERON PHARMACEUTICALS INC AND CLOSELY HELD SUGEN INC AMGEN IS REENERGIZING ITSELF AND STAYING FOCUSED SAYS G STEVEN BURRILL SENIOR ADVISER TO ERNST & YOUNG'S HIGHTECHNOLOGY AND LIFE SCIENCES PRACTICE AMGEN IS TRYING TO REASSURE WALL STREET THAT ANY NEARTERM NEUPOGEN WEAKNESS WILL BE MADE UP BY GREATERTHANEXPECTED SALES OF ITS OTHER DRUG A REDBLOOD CELL STIMULATOR CALLED EPOGEN BUT LONG TERM EPOGEN GROWTH IS SEVERELY CONSTRAINED BY AN OLD LICENSING AGREEMENT THAT GIVES AMGEN'S NEMESIS JOHNSON & JOHNSON RIGHTS TO MOST POTENTIAL NEW MARKETS SUCH AS TREATMENT OF THE AIDS DISEASE AMGEN RECEIVES ROYALTIES FROM J&J'S SALES OF THE DRUG SOLD UNDER OTHER BRAND NAMES IN THE US AND EUROPE AS A TREATMENT FOR OTHER DISEASES AMGEN'S MARKET IS RESTRICTED TO THE ROUGHLY 140000 US PATIENTS RECEIVING KIDNEY DIALYSIS TREATMENT BY CONTRAST AMGEN HAS KEPT MOST RIGHTS TO NEUPOGEN SOLD IN THE US AND MANY FOREIGN COUNTRIES INCLUDING CANADA AUSTRALIA AND THROUGHOUT EUROPE THE SPREAD OF NEW HIGHDOSE CHEMOTHERAPY CANCER THERAPIES HAS SPURRED DEMAND FOR NEUPOGEN WHICH DOMINATES ITS MARKET WITH A 93 SHARE AMGEN SAYS LAST YEAR NEUPOGEN SALES GREW 32 TO 7194 MILLION OF WHICH A QUARTER ARE OUTSIDE THE US EPOGEN SALES CLIMBED NEARLY 16 TO 5869 MILLION MANY DRUG COMPANIES INCLUDING AMGEN BLAME THE HEALTHCARE REFORM DEBATE FOR DISCOURAGING PHYSICIANS FROM USING EXPENSIVE NEW DRUGS AT A COST OF MORE THAN 100 A DAY NEUPOGEN CAN ADD 6000 TO 7000 TO A CHEMOTHERAPY TREATMENT AND AMGEN CALCULATES THAT LESS THAN A THIRD OF PATIENTS WHO COULD BENEFIT FROM NEUPOGEN ARE GETTING IT BUT MEDICAL ONCOLOGISTS BELIEVE THE HEALTHCARE DEBATE IS ONLY PART OF THE STORY IT'S TRUE THAT DOCTORS ARE BEING FORCED TO THINK HARDER ABOUT COST EFFECTIVENESS EVEN OF REVOLUTIONARY DRUGS SUCH AS NEUPOGEN SAYS CARY PRESANT PRESIDENT OF THE CALIFORNIA CANCER MEDICAL CENTER IN WEST COVINA CALIF BUT NEUPOGEN USAGE ALSO COULD FALL AS DOCTORS LEARN MORE ABOUT WHICH PATIENTS CAN BENEFIT MOST FROM THE DRUG AND WHEN THE MOST APPROPRIATE TIMES ARE TO USE IT HE SAYS AMGEN HOPES THAT NEUPOGEN GROWTH WILL SPURT AGAIN IN 1996 BASED ON RESULTS OF CONTINUING HUMAN TESTS DESIGNED TO PROVE THE DRUG'S EFFECTIVENESS AS A POWERFUL NEW ANTIBIOTIC NEUPOGEN WOULD LOOK VERY MUCH LIKE A NEW PRODUCT IF IT WERE APPROVED FOR INFECTIOUS DISEASE MR BINDER SAYS SINCE AMGEN BEGAN TESTING NEUPOGEN FOR THIS BROAD USE THE ENTHUSIASM OF SOME ANALYSTS HAS WANED AS THEY LEARNED OF COMPETITIVE DRUGS UNDER DEVELOPMENT COMPETITION IS ALSO A CONCERN WITH CONSENSUS INTERFERON WHICH SOME CRITICS DENIGRATE AS A METOO PRODUCT THE DATA AREN'T COMPELLING ENOUGH TO SHOW THAT IT IS THAT MUCH MORE POTENT AGAINST HEPATITIS C THAN ALPHA INTERFERON THE CURRENT THERAPY SAYS LARRY BLOOM A DILLON READ & CO ANALYST SOME ANALYSTS BELIEVE THAT AMGEN'S NEXT BEST SHOT AT ANOTHER HOMERUN PRODUCT IS BRAINDERIVED NEUROTROPHIC FACTOR OR BDNF A BRAINNERVE GROWTH FACTOR THAT IS CONSIDERED A PROMISING FUTURE TREATMENT FOR LOU GEHRIG'S DISEASE ALZHEIMER'S AND PARKINSON'S THIS WILL BE BIGGER THAN EPOGEN OR NEUPOGEN WITH SALES STARTING AS EARLY AS 1996 AND REACHING 2 BILLION BY THE YEAR 2000 MR BLOOM PREDICTS PROFIT WOULD BE SPLIT WITH REGENERON A TARRYTOWN NY BIOTECH COMPANY THAT IS AMGEN'S PARTNER IN DEVELOPING BDNF AND ANOTHER MOLECULE AMGEN SPENT 255 MILLION OR 17 OF TOTAL REVENUE ON RESEARCH AND DEVELOPMENT LAST YEAR INCLUDING A BIG CHUNK ON OUTSIDE COLLABORATIONS THOSE OUTSIDE EFFORTS CHEER SOME AMGEN CRITICS INCLUDING FORMER EMPLOYEES TO SUCCEED BIOTECH COMPANIES NEED TO ENTERTAIN NEW IDEAS AND I DON'T THINK THAT SITUATION EXISTS AT AMGEN THERE ISN'T REALLY A SUPPORT FOR CREATIVITY SAYS KRISZTINA ZSEBO ONE OF THE MORE PROMINENT SCIENTISTS TO LEAVE AMGEN DR ZSEBO DISCOVERER OF THE STEM CELL FACTOR MOLECULE LEFT TWO YEARS AGO AND IS NOW VICE PRESIDENT OF PRODUCT DEVELOPMENT AT CELL GENESYS INC A FOSTER CITY CALIF BIOTECH CONCERN AMGEN IS STILL ATTRACTING CAPABLE SCIENTISTS BUT THEY ARE PEOPLE WHO LIKE WORKING FOR A YOUNG MERCK WHO DON'T HAVE TO TAKE A CHANCE SAYS W NEAL BURNETTE A MOLECULAR BIOLOGIST WHO LEFT AMGEN A YEAR AGO TO START HIS OWN COMPANY AMGEN NEEDS TO DEVELOP A NEW TYPE OF INTRAPRENEURSHIP SO IT CAN APPROACH THE DYNAMISM THAT IT HAD IN THOSE EARLY DAYS THAT LED TO THOSE TWO BLOCKBUSTER DRUGS IF IT CAN MAYBE WE'LL SEE THOSE DAYS AGAIN 9402110181 940211 CREDIT MARKETS PRICES OF BONDS LOSE GROUND IN THIN TRADING AS INVESTORS AWAIT TODAY'S INFLATION REPORT BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF LONGTERM TREASURYS LOST A LITTLE GROUND IN THE AFTERMATH OF A SUCCESSFUL 30YEAR BOND AUCTION LARGELY BECAUSE OF THIN TRADING AHEAD OF TODAY'S INFLATION REPORT AS BOND INVESTORS NERVOUSLY WATCHED THE MARKET DROP MANY ASKED THEMSELVES IF PRICES OF LONGTERM SECURITIES COULD RALLY AGAIN SINCE THE FEDERAL RESERVE HAS STARTED RAISING SHORTTERM INTEREST RATES A NUMBER OF WALL STREET'S LARGEST FIRMS SAID IT IS POSSIBLE THOUGH A NUMBER OF ANALYSTS SAID THEY BELIEVE IT UNLIKELY YESTERDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/2 POINT OR NEARLY 5 FOR A BOND WITH A 1000 FACE VALUE TO 97 13/32 ITS YIELD ROSE TO 644 FROM 640 ON WEDNESDAY THE AVERAGE YIELD ON THE TREASURY'S 1105 BILLION OF 30YEAR NOTES SOLD YESTERDAY WAS 643 IN LINE WITH EXPECTATIONS THE TREASURY RECEIVED BIDS TOTALING 3077 BILLION AND IT ACCEPTED BIDS TOTALING 1105 BILLION INCLUDING 355 MILLION OF NONCOMPETITIVE TENDERS AT THE AVERAGE YIELD DOWN FROM 390 MILLION AT THE PREVIOUS AUCTION ON AUG 12 1993 THE BIDCOVER RATIO WHICH COMPARES THE NUMBER OF BIDS RECEIVED AND THE NUMBER SOLD WAS 278TO1 THE PREVIOUS BOND SALE IN AUGUST 1993 PRODUCED AN AVERAGE YIELD OF 633 AND A HIGH YIELD OF 635 THE BIDCOVER RATIO WAS 213TO1 BOND INVESTORS ARE WORRIED ABOUT A REPORT ON THE JANUARY PRODUCERPRICE INDEX SCHEDULED FOR RELEASE TODAY A BIG JUMP IN THE INDEX WHICH IS A KEY MEASURE OF INFLATION COULD CONVINCE INVESTORS THAT INFLATION IS BACK AND THE FED MOVED TOO SLOWLY TO RAISE SHORTTERM RATES TO BATTLE IT ECONOMISTS ESTIMATE THE CORE PPI EXCLUDING THE VOLATILE FOOD AND ENERGY COMPONENTS WILL RISE BY 03 IF THE NUMBER COMES IN AT 04 AND RETAIL SALES SHOW STRENGTH THE MARKET COULD SELL OFF BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN IN TRADING THE WHENISSUED 30YEAR BOND TRADED AT A YIELD OF 644 THE 10YEAR NOTE SOLD WEDNESDAY WAS TRADING AT A YIELD OF 590 IN WHENISSUED TRADING WHILE THE NEW THREEYEAR NOTE WAS YIELDING 482 AMONG THE BIG BOND HOUSES CALLING FOR LONGTERM YIELDS TO FALL THIS YEAR DESPITE THE LAST WEEK'S FED RATE INCREASE WERE CS FIRST BOSTON GOLDMAN SACHS LEHMAN GOVERNMENT SECURITIES MERRILL LYNCH AND SALOMON BROTHERS ECONOMISTS AT THESE FIRMS ARGUED THAT INFLATION WILL REMAIN WELLCONTAINED THIS YEAR AFTER FALLING BELOW 3 IN 1993 THEY SAID IT IS POSSIBLE THAT THE FED WILL BE ABLE TO CONTAIN PRICE PRESSURES AND THAT ECONOMIC GROWTH WON'T BE SUSTAINED AT LEVELS WHICH WILL RESULT IN A FLAREUP OF INFLATION HOWEVER A NUMBER OF ANALYSTS CONTENDED THAT LONGTERM INTEREST RATES HAVE NEVER BEEN ABLE TO FALL FOR A SUSTAINED PERIOD OF TIME WHEN THE FED HAS BEEN RAISING SHORTTERM INTEREST RATES THEY DEEMED IT UNLIKELY THAT THE LINK WILL BE BROKEN THE FEDERAL RESERVE PUSHED UP THE FEDERALFUNDS RATE BY A QUARTER OF A PERCENTAGE POINT A WEEK AGO IN WHAT MOST ANALYSTS SAID THEY BELIEVE WILL BE THE FIRST OF MANY TIGHTENINGS NORMALLY WALL STREET WOULD BE BRACING FOR LONGTERM INTEREST RATES TO HEAD HIGHER AS WELL BUT IT IS THE CHANCE THAT BOND YIELDS COULD DECLINE EVEN AS SHORTTERM INTEREST RATES ARE RISING THAT HAS CAPTURED THE ATTENTION OF TRADERS AND INVESTORS BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH IS AMONG THOSE WHO ARGUED THAT THE FED MAY HAVE HELPED CREATE A UNIQUE SET OF CIRCUMSTANCES IN WHICH LONGTERM RATES COULD DECLINE THE PATH OF LONG RATES IS GOING TO DEPEND PRINCIPALLY ON INFLATION AND INFLATION EXPECTATIONS MR STEINBERG SAID AND THE FED'S TIGHTENING RIGHT NOW HAS TO BE SEEN AS PREEMPTIVE IT'S AN ATTEMPT TO KEEP INFLATION FROM GOING HIGHER AND AN ATTEMPT TO CONVINCE THE MARKET IT IS ACTING PROACTIVELY RATHER THAN REACTIVELY ASIDE FROM THE FED TIGHTENING THERE ARE OTHER REASONS TO BELIEVE INFLATION CAN FALL FURTHER MR STEINBERG SAID HE ARGUED THAT THE PRODUCTIVITY BOOM OF THE PAST FEW YEARS HAS RAISED THE PACE AT WHICH THE ECONOMY CAN GROW WITHOUT DEVELOPING PRICE PRESSURES I DON'T THINK THERE IS A RISK THIS YEAR OR NEXT OF INFLATION HEATING UP MR STEINBERG SAID BUT OTHER ANALYSTS WEREN'T QUITE SO SURE JOHN WILLIAMS CHIEF GLOBAL MARKET ECONOMIST AT BANKERS TRUST SAID IT WAS HIGHLY UNLIKELY THAT LONGTERM BOND YIELDS COULD FALL AT THE SAME TIME AS THE FED IS TIGHTENING DURING A CYCLICAL UPTURN IN THE ECONOMY YOU ARE GOING TO HAVE SOME UPWARD PRESSURE ON ALL INTEREST RATES MR WILLIAMS SAID ONCE WE GET THROUGH THIS ECONOMIC CYCLE AND THE FED SUCESSFULLY SLOWS THE ECONOMY HE ADDED WE CAN HAVE A FURTHER DOWNWARD MOVE IN LONGTERM RATES DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS WAS ALSO SKEPTICAL IF INFLATION WAS CONTINUING TO FALL WHY WOULD THE FED CONTINUE TO TIGHTEN SHOULD LONGTERM INTEREST RATES FALL AS THE FED TIGHTENED IT WOULD BE A SIGNIFICANT BREAK FROM PAST PATTERNS MOST ANALYSTS SAID IT HAS NEVER HAPPENED ON A SUSTAINED BASIS OF OVER THREE OR SIX MONTHS SAID LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES MR CRANDALL ARGUED THAT PART OF THE REASON LONGTERM RATES HAVE FOLLOWED SHORTTERM RATES IS THAT THE MARKET READS AN IMPLICIT FORECAST INTO FED POLICY MOVES HE SAID THE WAY THE REASONING TYPICALLY GOES IS IF THE FED IS EASING THE FED MUST BE WORRIED ABOUT THE HEALTH OF THE ECONOMY MR CRANDALL WENT ON TO ADD THAT THE FED IS PRESENTING THIS MOVE NOT AS A REACTION TO INFLATION PRESSURES BUT AS A PREEMPTIVE MOVE SO THERE IS AN IMPLICIT FORECAST OF RISING INFLATION THERE IS ALSO A TECHNICAL REASON FOR LONGTERM INTEREST RATES TRACKING THE DIRECTION OF SHORTTERM RATES ANALYSTS SAID HIGHER SHORTTERM RATES MEAN HIGHER COSTS OF FINANCING INVENTORIES OF SECURITIES IF A GUY IS BUYING BONDS THE COST OF FINANCING HAS JUST GONE UP SAID SAMUEL KAHAN CHIEF ECONOMIST AT FUJI SECURITIES BUT ROBERT ARIEL AN ASSISTANT PROFESSOR OF FINANCE AT BARUCH COLLEGE SAID THE LINK BETWEEN LONGTERM AND SHORTTERM INTEREST RATES IS NOT AS STRONG AS IT APPEARS TO BE THE OLDTIME BET OF THE CONNECTION BETWEEN LONG RATES AND SHORT RATES IS MUCH MORE TENUOUS THAN IS COMMONLY THOUGHT MR ARIEL SAID AT ITS MOST BASIC LEVEL SHORTTERM INTEREST RATES REFLECT NEARTERM CREDIT DEMAND WHILE LONGTERM INTEREST RATES REFLECT LONGTERM CREDIT DEMAND AND INFLATION EXPECTATIONS MR ARIEL SAID WHEN WE DRAW A YIELD CURVE WE ARE IN FACT CONNECTING SEPARATE MARKETS HE SAID IN ADDITION LONGTERM RATES TEND TO MOVE IN LONG CYCLES LONGTERM RATES PEAKED IN 1981 AND SHORTTERM INTEREST RATES HAVE BOUNCED AROUND QUITE A BIT SINCE THEN MR ARIEL ALSO ARGUED THAT THE GAP BETWEEN LONGTERM AND SHORTTERM RATES IS HISTORICALLY HUGE LEAVING PLENTY OF ROOM FOR SHORTTERM RATES TO MOVE HIGHER WITHOUT TAKING LONGTERM RATES ALONG FOR THE RIDE SHORT RATES COULD GO UP WITHOUT DRAGGING LONG RATES UP BECAUSE LONG RATES ALREADY ARE UP MR ARIEL SAID 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 BONDS ARE DATED FEB 15 AND MATURE AUG 15 2023 KAISER ALUMINUM'S KAISER ALUMINUM & CHEMICAL CORP AND CALPINE CORP LED ACTIVITY IN THE JUNKBOND MARKET YESTERDAY WHILE NORTHERN STATES POWER CO SOLD 200 MILLION OF DEBT THROUGH A COMPETITIVE OFFERING EARLY IN THE SESSION OTHERWISE SECONDARY TRADING WAS EXTREMELY THIN AS THE MARKET FOCUSED ON THE TREASURY'S AUCTION OF 30YEAR BONDS YIELD SPREADS IN THE INVESTMENTGRADE MARKET OVER COMPARABLE TREASURYS WERE SLIGHTLY NARROWER AND PRICES FOLLOWED TREASURYS DOWN NORTHERN STATES POWER SOLD 200 MILLION OF FIRSTMORTGAGE BONDS THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY THE 55 COUPON BONDS WERE PRICED AT 99825 TO YIELD 554 IN THE JUNKBOND MARKET KAISER ALUMINUM'S 9 7/8 COUPON EIGHTYEAR SENIOR NOTES WERE PRICED AT 99324 TO YIELD 10 IN CONJUNCTION WITH A STOCK OFFERING THROUGH LEAD MANAGER MERRILL LYNCH THE OFFERING'S SIZE WAS INCREASED TO 225 MILLION FROM 175 MILLION TO MEET INVESTOR DEMAND A MERRILL CAPITALMARKETS OFFICIAL SAID PEOPLE VIEW THIS AS A CYCLICAL TURNAROUND STORY THE OFFICIAL SAID NOTING THAT THE ALUMINUM MARKET HAS BEEN HELPED BY POSITIVETRADE AGREEMENTS THE OFFERING WHICH WAS PRICED LATE IN THE SESSION WAS THREE TIMES OVERSUBSCRIBED HE ADDED THE NOTES ARE NONCALLABLE FOR FOUR YEARS MEANWHILE BONDS OF TIME WARNER ENTERTAINMENT CO A UNIT OF TIME WARNER INC TOOK A SLIGHT JOLT YESTERDAY FOLLOWING THE FIRM'S REGISTRATION OF A SHELF OFFERING OF AS MUCH AS 2 BILLION OF DEBT SECURITIES TIME WARNER ENTERTAINMENT INCLUDES ALL OF THE CABLE TELEVISION AND FILMED ENTERTAINMENT OPERATIONS OF TIME WARNER INC IN THE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE FIRM SAID PROCEEDS WOULD BE USED FOR DEBT REPAYMENT AND GENERAL PURPOSES THE UNIT HAS ABOUT 71 BILLION IN DEBT INCLUDING 24 BILLION IN BANK DEBT THE UNIT'S LONGTERM DEBT TRADED LATE YESTERDAY AT ABOUT 132 PERCENTAGE POINTS ABOVE THE BENCHMARK 30YEAR TREASURY UP FROM ABOUT 128 PERCENTAGE POINTS BEFORE THE FILING A WALL STREET SYNDICATE OFFICIAL SAID MAX HOLMES A SALOMON BROTHERS ANALYST SAID SOME INVESTORS MAY BE SPOOKED BY THE PROSPECT THAT TIME WARNER IS LOADING UP WITH DEBT TO MAKE IT DIFFICULT FOR SUITOR SEAGRAM CO TO GAIN CONTROL OF THE COMPANY MR HOLMES SAID THE MOST INTERESTING QUESTION IS DOES THIS HAVE ANYTHING TO DO WITH THE POTENTIAL RAID OF TIME WARNER BY SEAGRAM BUT A TIME WARNER SPOKESMAN SAID THE DEBT'S PURPOSE IS WHAT WE SAID IN THE FILING PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED AFTER AN UNINSPIRED SESSION AMONG SECONDARY ISSUES THE MONROE COUNTY DEVELOPMENT AUTHORITY OF GEORGIA'S 54 BONDS OF 2024 FINISHED 1/4 POINT LOWER AT 98 1/4 TO YIELD 549 BUT THE REEDY CREEK IMPROVEMENT DISTRICT OF FLORIDA'S 5 BONDS OF 2019 CLOSED 1/8 HIGHER AT 94 3/8 TO YIELD 537 MARKET PARTICIPANTS ARE GETTING SET FOR THE SALE OF CALIFORNIA'S 32 BILLION OF 1994 REVENUE ANTICIPATION WARRANTS IN COMPETITIVE BIDDING TUESDAY STANDARD & POOR'S CORP SAID THAT IT HAS REVISED ITS LONGTERM RATING OUTLOOK ON CALIFORNIA TO NEGATIVE FROM STABLE S&P SAID THE ACTION REFLECTS CONTINUED DETERIORATION IN THE STATE'S CASH POSITION AND A PROJECTED 1994 ADJUSTED OPERATING DEFICIT WHICH WILL PREVENT THE STATE FROM MAKING PROGRESS TOWARD DEFICIT REDUCTION S&P ALSO ASSIGNED ITS SP1 RATING TO THE STATE'S REVENUE ANTICIPATION WARRANTS MORTGAGESECURITIES PRICES ENDED MIXED WITH HIGHERCOUPON ISSUES OUTPERFORMING LOWERCOUPON ISSUES ON TRADE BASED ON EXPECTATIONS OF SLOWING PREPAYMENTS THE FEDERAL RESERVE'S TIGHTENING MOVE LAST WEEK AND THE LATEST FEDERAL HOME LOAN MORTGAGE CORP REPORT ON MORTGAGELENDING RATES BOLSTERED SPECULATION THAT HIGHER RATES WILL STIFLE REFINANCINGS THE CORPORATION'S WEEKLY SURVEY SHOWED LENDERS ASKED FOR AN AVERAGE RATE OF 721 ON CONVENTIONAL 30YEAR FIXEDRATE MORTGAGES IN THE LATEST WEEK UP FROM 697 A WEEK EARLIER BUT LOWERCOUPON PRICES WERE DOWN AS MUCH AS 5/32 AMONG 65S FOR MARCH DELIVERY GINNIE MAES WERE 4/32 WEAKER AT 98 20/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE 5/32 LOWER ON THE DAY TRADING AT 98 25/32 AND 98 19/32 RESPECTIVELY LESLIE SCISM CONTRIBUTED TO THIS ARTICLE 9402110180 940211 FOSTER WHEELER UNIT CONTRACT CLINTON NJ FOSTER WHEELER ENERGY CORP A UNIT OF FOSTER WHEELER CORP SAID IT IS NEGOTIATING A 185 MILLION CONTRACT TO PROVIDE TWO STEAM GENERATORS FOR A CHINESE POWER PROJECT THE COMPANY SAID THE TWO 300MEGAWATT ANTHRACITE COALFIRED GENERATORS WOULD BE PURCHASED BY THE INTERNATIONAL TENDERING CO OF THE CHINA NATIONAL TECHNICAL IMPORT & EXPORT CORP AND THE HUBEI ELECTRIC POWER INDUSTRY BUREAU FOSTER WHEELER CORP A PROVIDER OF DESIGN ENGINEERING CONSTRUCTION AND PLANT OPERATIONS SERVICES SAID THE POWER PROJECT IS BEING FINANCED BY THE OVERSEAS ECONOMIC COOPERATION FUND OF JAPAN 9402110178 940211 ECONOMY PROSPECTS LOOK BLEAK FOR CALIFORNIA CITY PALMDALE SUFFERS FROM FORECLOSURES URBAN WOES BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL PALMDALE CALIF AT 431 AM ON JAN 17 THE FORTUNES OF THIS ALREADY TROUBLED CITY TOOK A TUMBLE TWENTYFIVE MILES AWAY THE LOS ANGELES AREA EARTHQUAKE COLLAPSED A FIVESTORY HIGH FREEWAY INTERSECTION SEVERING PALMDALE'S MAIN CONNECTION TO THE URBAN CENTER WHERE MANY OF ITS NOWRATTLED RESIDENTS WORK SUDDENLY HOURS HAVE BEEN ADDED TO THE COMMUTING TIMES OF THOUSANDS A STROKE OF MISFORTUNE FOR A CITY WHERE THINGS ARE ALREADY SO BAD THAT CALLS FOR CHRISTMAS CHARITY BASKETS QUADRUPLED THIS YEAR AT A LOCAL MUNICIPAL AID AGENCY THOUGH LOCAL ECONOMIES ARE IMPROVING IN MUCH OF THE NATION THE FORCES OF SOUTHERN CALIFORNIA'S ENTRENCHED RECESSION AND DAMAGE FROM ITS EARTHQUAKE ARE WRIT LARGE HERE WITH TROUBLING FINANCIAL AND SOCIAL REPERCUSSIONS ON THE ONCEBOOMING SUBURBAN FRINGE OF LOS ANGELES RECOVERY IS NOWHERE IN SIGHT ADVERTISEMENTS FOR LOCAL SUPERMARKETS NOTE THAT FOOD STAMPS ARE WELCOME FORECLOSURES ON HOMES ARE CLIMBING AND CITY OFFICIALS ARE WORRIED ABOUT MEETING PAYMENTS ON MUNICIPAL DEVELOPMENT BONDS PALMDALE WHICH GREW FASTER THAN ALL OTHER CALIFORNIA CITIES DURING THE STATE'S PEAK YEARS IN THE 1980S IS TODAY A STUDY IN SUBURBAN CHANGE A DESERT SITE THAT HAS ACQUIRED THE POPULATION AND THE PROBLEMS OF THE URBAN LIFE ITS RESIDENTS CAME HERE TO AVOID THE CITY WITHOUT LIMITS AS PALMDALE BILLS ITSELF HAS NEARLY 90000 INHABITANTS OVER SEVEN TIMES THE 12000 RESIDENTS IN 1980 SOME 20000 PEOPLE HAVE ARRIVED IN THE LAST THREE YEARS ALONE EVEN IN RECESSION GROWTH IS THE MAIN BUSINESS IN PALMDALE WHERE FLAGS AND BILLBOARDS ADVERTISE SUBDIVISIONS AND A SEA OF REDTILED ROOFS AND WHITE STUCCO HOUSES STRETCHES INTO THE DISTANCE TO ME IF A CITY ISN'T GROWING IT'S DYING SAYS JAMES LEDFORD JR PALMDALE'S PARTTIME MAYOR WHO IS OTHERWISE UNEMPLOYED CHEAP HOUSING DRAWS PEOPLE TO THIS SITE 60 MILES NORTH OF DOWNTOWN LOS ANGELES FOR NOT MUCH MORE THAN 100000 INEXPENSIVE BY CALIFORNIA STANDARDS THE AMERICAN DREAM IS WITHIN REACH THE DOWNSIDE FOR MANY IN THE WORK FORCE HAS BEEN A DAILY DRIVE OF AS MUCH AS FOUR HOURS TO AND FROM DOWN BELOW AS LOCALS REFER TO THE SPRAWL OF LOS ANGELES WITH THE SEVERED FREEWAY THAT TRIP HAS GROWN IN SOME CASES TO AS MUCH AS FIVE OR SIX HOURS WHILE PALMDALE'S POPULATION SWELLS ITS COMMERCIAL LIFE BLOOD HAS COAGULATED HOUSING CONSTRUCTION HAS PLUNGED FROM A PEAK OF ALMOST 7000 HOMES VALUED AT A TOTAL OF 760 MILLION IN 1989 PALMDALE'S RESIDENTIAL BUILDING PERMITS HAVE DWINDLED TO 627 HOUSES VALUED AT JUST 65 MILLION IN THE FIRST TEN MONTHS OF LAST YEAR PALMDALE'S NEWER RESIDENTS ARE FLOCKING TO SMALLER MORE DENSELY PACKED APARTMENTS AND HOUSES THE CITY'S MANY MARGINAL FIRSTTIME BUYERS HAVE BEEN ESPECIALLY VULNERABLE TO DECLINING ECONOMIC FORTUNES THROUGH OCTOBER MORTGAGE LENDERS FORECLOSED ON NEARLY 740 HOUSES TOTALING 122 MILLION IN VALUE ACCORDING TO TRWREDI PROPERTY DATA AT THIS RATE FORECLOSURES ARE OUTPACING NEW CONSTRUCTION IN VALUE PALMDALE HOUSE PRICES HAVE FALLEN MODERATELY BY CALIFORNIA STANDARDS OFF ABOUT 13 TO AN AVERAGE OF 134400 FROM A PEAK OF 155200 IN 1990 MORE TELLING IS WHAT HAS HAPPENED IN THE REALESTATE DEVELOPMENT MARKET PRICES FOR UNDEVELOPED LAND HAVE PLUNGED TO LESS THAN HALF THEIR 1989 PEAK EVEN AS VALUES DWINDLE PALMDALE'S POPULATION KEEPS SWELLING IN THE SURGE THE IMAGE OF BENIGN SUBURBIA OF LAWNS AND BARBECUES AND HOUSES ON QUIET CURVED STREETS IS CLASHING INCREASINGLY WITH THE REALITIES OF MODERN CALIFORNIA FROM A POPULATION ALMOST ENTIRELY WHITE MOSTLY BLUE COLLAR AND VERY MIDDLE CLASS PALMDALE HAS DIVERSIFIED INTO A RACIAL AND SOCIOECONOMIC MIX CLOSER TO THAT OF GREATER LOS ANGELES LESS THAN TWOTHIRDS OF PALMDALE'S POPULATION IS WHITE NONHISPANIC THESE DAYS ROUGHLY ONE QUARTER IS LATINO THE REMAINDER INCLUDES A GROWING BLACK POPULATION AS WELL AS ASIAN AMERICANS WITH THESE CHANGES PROBLEMS HAVE EMERGED HATE MAIL AND CALLS POURED IN WHEN A LOCAL ENGLISHLANGUAGE RADIO STATION DROPPED AN ENGLISHLANGUAGE COUNTRY AND WESTERN FORMAT TO BECOME THE FIRST ALLSPANISH STATION IN THE AREA A SKINHEAD WAS FOUND WITH A PIPEBOMB AT THE LOCAL HIGH SCHOOL NOT LONG AGO AND A CALIFORNIA LEGISLATOR WHO IS A FORMER MAYOR OF PALMDALE RAISED EYEBROWS WHEN HE DISTRIBUTED A RACIST POEM THAT MOCKED LATINO IMMIGRANTS YET PALMDALE IN ONE MAJOR WAY MAY REPRESENT A MULTIRACIAL MODEL FOR SUBURBAN AMERICA AMID RAPID GROWTH COMMUNITIES SPRANG UP WITHOUT REGARD TO SKIN COLOR WE DIDN'T WORRY WHO OUR NEIGHBORS WERE WE WERE LOOKING FOR AFFORDABLE HOUSING SAYS MAYOR LEDFORD HOWEVER THE MIDDLECLASS COMFORTS OF HOME OWNERSHIP ARE BEING UNDERCUT BY SOUTHERN CALIFORNIA'S ECONOMIC WOES COMMUTER WORKERS HAVE BEEN BROADLY AFFECTED BY LOS ANGELESAREA JOBLESSNESS WHICH HAS LINGERED ABOVE 9 FOR SEVERAL YEARS NOW AT A GIANT AIR FORCE FACILITY IN THE HEART OF PALMDALE WHERE LOCKHEED CORP NORTHROP CORP AND ROCKWELL INTERNATIONAL CORP ALL OPERATE AIRCRAFT ASSEMBLY AND MAINTENANCE FACILITIES UNDER CONTRACT JOBS ARE BEING CONSOLIDATED FROM OTHER LOS ANGELESREGION FACILITIES BOOSTING EMPLOYMENT SOON TO ABOUT 11000 PEOPLE FROM ABOUT 8500 CURRENTLY BUT MANY OF THOSE POSITIONS ARE FILLED BY EMPLOYEES COMMUTING FROM ELSEWHERE AND ARE SLATED TO DISAPPEAR IN A FEW YEARS AS PRODUCTION CONTRACTS FOR THE B2 STEALTH BOMBER AND OTHER PROJECTS ARE COMPLETED THE CITY OF PALMDALE ITSELF IS SHEDDING WORKERS AND ITS OWN AMBITIOUS DEVELOPMENT PLANS HAVE STUMBLED IN A RECENT LETTER TO HOLDERS OF SOME OF ITS LOCAL IMPROVEMENT BONDS THE CITY EXPLAINED THAT THOUGH PAYMENTS TO BONDHOLDERS HAVE BEEN UP TO DATE LOCAL BUSINESSES HAVE MADE LESS THAN TWOTHIRDS OF REQUIRED PAYMENTS ON TIME INTO THE LOCAL IMPROVEMENT FUND AND THAT DELINQUENCIES WERE RUNNING INTO THE MILLIONS OF DOLLARS BUT THE CITY IS UNDER STRAIN PUBLIC SERVICES ARE MORE IN DEMAND THAN EVER FROM THE GROWING AND CHANGING POPULATION THE CITY'S MAIN CHARITY AGENCY A PROVIDER OF LAST RESORT FOR FINANCIALLY IMPERILED RESIDENTS RAN OUT OF MONEY BRIEFLY THIS FALL CRIME ONCE RELATIVELY LOW HAS SOARED OF LATE JUVENILE ARRESTS FOR SERIOUS CRIMES JUMPED 26 IN THE FIRST EIGHT MONTHS OF 1993 SAYS RICHARD LOA A LOCAL PUBLIC DEFENDER AND PROMINENT MEMBER OF THE LATINO COMMUNITY PEOPLE CAME HERE TO ESCAPE BUT EVERYTHING THAT THEY RAN FROM IN LOS ANGELES IS COMING UP HERE 9402110177 940211 CANADA SETS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 23 BILLION CANADIAN DOLLARS US171 BILLION OF 575 BONDS DUE MARCH 1 1999 PROCEEDS WILL BE USED TO REDEEM C15 BILLION OF GOVERNMENT BONDS MATURING MARCH 1 1994 AND FOR GENERAL PURPOSES 9402110175 940211 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 3 1/16 LOW 3 1/16 NEAR CLOSING BID 3 1/8 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 TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 333 30 TO 39 DAYS 335 40 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 347 60 DAYS 351 90 DAYS CERTIFICATES OF DEPOSIT 271 ONE MONTH 278 TWO MONTHS 283 THREE MONTHS 301 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 335 ONE MONTH 345 THREE MONTHS 365 SIX MONTHS BANKERS ACCEPTANCES 329 30 DAYS 334 60 DAYS 337 90 DAYS 344 120 DAYS 349 150 DAYS 354 180 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 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 272 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402110174 940211 WHO'S NEWS RENO SELECTS HARRIS TO BE ACTING DEPUTY WASHINGTON ATTORNEY GENERAL JANET RENO NAMED JO ANN HARRIS AS ACTING DEPUTY ATTORNEY GENERAL TO TEMPORARILY SUCCEED PHILIP HEYMANN WHOSE RESIGNATION TAKES EFFECT TODAY MS HARRIS WILL CONTINUE HER DUTIES AS ASSISTANT ATTORNEY GENERAL FOR THE CRIMINAL DIVISION UNTIL THE SENATE CONFIRMS SOMEONE TO SUCCEED MR HEYMANN JAMIE GORELICK CURRENTLY THE PENTAGON'S GENERAL COUNSEL IS THE LEADING CANDIDATE FOR DEPUTY ATTORNEY GENERAL UNTIL A PERMANENT DEPUTY IS SELECTED THE MANAGEMENT DIVISION WHICH NORMALLY REPORTS TO MR HEYMANN'S OFFICE WILL REPORT TO ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHO GENERALLY OVERSEES THE DEPARTMENT'S CIVIL MATTERS THE MANAGEMENT DIVISION IS RESPONSIBLE FOR THE DEPARTMENT'S BUDGETARY AND PERSONNEL MATTERS A DEPARTMENT STATEMENT SAID THE REPORTING SHIFT WAS DONE TO MORE EQUITABLY DISTRIBUTE THE WORKLOAD WHILE MS HARRIS RUNS THE CRIMINAL DIVISION AND THE DEPUTY'S OFFICE 9402110173 940211 ECONOMY TAXREFUND FRAUD COULD COST THE US BILLIONS SPECIAL IRS REPORT INDICATES BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A CONFIDENTIAL REPORT PREPARED FOR THE INTERNAL REVENUE SERVICE INDICATES THAT TAXREFUND FRAUD COULD BE COSTING THE GOVERNMENT BILLIONS OF DOLLARS IRS COMMISSIONER MARGARET RICHARDSON TOLD CONGRESS MS RICHARDSON WAS QUESTIONED ABOUT THE REPORT DURING A HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE HEARING WHICH FOCUSED ON FRAUD IN ELECTRONIC FILINGS AT THE HEARING A CONVICTED TAXSCAM PERPETRATOR DESCRIBED DEFRAUDING THE IRS WITH BOGUS ELECTRONIC TAX FILINGS AS QUITE EASY EASY AS PIE CONCLUDED SUBCOMMITTEE CHAIRMAN JJ PICKLE D TEXAS THE IRS COMMISSIONER DECLINED TO DISCUSS SPECIFICS OF THE CONFIDENTIAL REPORT WHICH WAS PREPARED BY AN OUTSIDE CONSULTANT IN OPEN SESSION BUT SHE SAID THE THRUST OF THE REPORT IS THAT THE IRS BADLY NEEDS TO COME TO GRIPS WITH REFUND FRAUD RELATED TO ELECTRONIC TAX FILINGS WHILE SHE DESCRIBED THE PROBLEM AS TERRIBLY SERIOUS MS RICHARDSON MADE IT CLEAR SHE ISN'T SUBSCRIBING TO ANY PARTICULAR LOSS ESTIMATE AT THIS TIME AFTER THE HEARING IRS OFFICIALS DECLINED TO PROVIDE MORESPECIFIC FIGURES MS RICHARDSON SAID THE IRS HAS ASKED THE LOS ALAMOS NATIONAL LABORATORY IN LOS ALAMOS NM TO EMPLOY ARTIFICIAL INTELLIGENCE IN FIGHTING ELECTRONIC FILING FRAUD THROUGH LOS ALAMOS'S ADVANCED COMPUTING LAB WE CAN PLACE THE RESOURCES OF THE WORLD'S MOST POWERFUL HIGHPERFORMANCE COMPUTERS TO WORK ON THE PROBLEM OF FRAUD DETECTION SHE SAID THE IRS CHIEF ALSO SAID THE AGENCY HAS ASSEMBLED SPECIALISTS KNOWN IN TAX ENFORCEMENT CIRCLES AS TIGER TEAMS TO CHALLENGE THE TAXFILING SYSTEM WITH THEIR OWN SCAM TECHNIQUES REP PICKLE WHO SAID HE WILL RECOMMEND SUSPENDING THE IRS'S ELECTRONIC TAXRETURN FILING PROGRAM UNLESS THE AGENCY GETS A HANDLE ON THE FRAUD PROBLEMS BY THIS FALL SAID THE IRS PAID 25000 TO A CONSULTANT TO PREPARE THE REPORT HE URGED THE AGENCY TO MAKE IT PUBLIC AS SOON AS POSSIBLE MS RICHARDSON DECLINED TO IDENTIFY THE CONSULTANT WHO PREPARED THE REPORT AND SEEMED DISPLEASED THAT IT WAS BROUGHT UP AT A PUBLIC HEARING THE REPORT DEALS WITH TAXREFUND FRAUD RELATED TO BOTH ELECTRONIC AND PAPER FILINGS THE GENERAL ACCOUNTING OFFICE TOLD THE HOUSE PANEL THAT ELECTRONIC FILING FRAUD REQUIRES URGENT IRS ATTENTION SAYING THAT IN THE FIRST 10 MONTHS OF 1993 THE IRS IDENTIFIED A 105 INCREASE IN FRAUDULENT ELECTRONIC RETURNS COMPARED WITH THE YEAREARLIER PERIOD THE ISSUE WILL BECOME MORE CRITICAL AS THE IRS MOVES TOWARD ITS GOAL OF 80 MILLION ELECTRONIC RETURNS BY 2001 THE CONGRESSIONAL WATCHDOG AGENCY SAID WHAT MAKES ELECTRONIC FILING AN ATTRACTIVE TARGET TO CON ARTISTS IS THE QUICK TURNAROUND TIME FOR REFUNDS TWO MEN NOW SERVING PRISON TERMS FOR TAXRETURN VIOLATIONS TOLD THE SUBCOMMITTEE OF THEIR FRAUD TECHNIQUES AND VOLUNTEERED TO SERVE ON THE IRS TIGER TEAMS WHEN THEY'RE RELEASED FRAZIER TODD JR WHO OPERATED AN ELECTRONIC TAXRETURN FRAUD PRIMARILY OUT OF ATLANTA TOLD THE HOUSE PANEL THAT THE IRS DIDN'T DETECT HIS FRAUDULENT SCHEME ON ITS OWN BUT WAS TIPPED OFF BY AN INFORMANT THE IRS'S MS RICHARDSON TOLD THE SUBCOMMITTEE THAT THE AGENCY ALREADY HAS DETECTED 200 SCHEMES INVOLVING APPROXIMATELY 3000 ATTEMPTS TO FILE FRAUDULENT CLAIMS ON RETURNS IN THE FIRST SIX WEEKS OF THE 1994 TAXFILING SEASON SHE SAID MOST OF THE MORESOPHISTICATED FRAUD SCHEMES ARE DEVISED BY PEOPLE SKILLED IN COMPUTER PROGRAMS AND TECHNIQUES 9402110172 940211 INDONESIA IS SET TO SIGN ACCORD FOR POWER PLANT BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA AND AN INTERNATIONAL CONSORTIUM PLAN TO SIGN TODAY A 30YEAR PRICING AGREEMENT THEY EXPECT TO CLEAR THE WAY FOR THE CONSTRUCTION OF A 25 BILLION PRIVATELY OWNED POWER PLANT A GOVERNMENT OFFICIAL AND THE CONSORTIUM SAID SEPARATELY EARLIER THIS WEEK THAT THE STAGE IS SET FOR SIGNING A POWERPURCHASE AGREEMENT ON PRICING AND TERMS FOR INDONESIA'S FIRST BIG PRIVATE POWER PROJECT AND WHAT WOULD BE ONE OF ASIA'S LARGEST PRIVATE INFRASTRUCTURE DEVELOPMENTS IT HAS TAKEN 18 MONTHS FOR THE GOVERNMENT TO REACH AGREEMENT WITH THE COMPANIES FORMING PT PAITON ENERGY WITH THE SIGNING ONE OBSTABLE REMAINS AS THE VENTURE MUST ARRANGE TO BORROW ABOUT 18 BILLION THE CONSORTIUM IS MADE UP OF MISSION ENERGY BV OF THE NETHERLANDS A UNIT OF MISSION ENERGY CO OF THE US WITH A 325 STAKE GENERAL ELECTRIC POWER FUNDING CORP OF THE US ALSO WITH A 325 HOLDING MITSUI & CO OF JAPAN WITH A 20 STAKE AND PT BATU HITAM PERKASA OF INDONESIA WITH A 15 SHARE IF AND WHEN FINANCING IS LINED UP THE CONSORTIUM WILL BUILD TWO 660MEGAWATT GENERATORS AT PAITON ABOUT 56 MILES EAST OF SURABAYA INDONESIA'S SECONDLARGEST CITY EACH COALFIRED GENERATOR IS TO PROVIDE 615 MEGAWATTS OF ELECTRICITY TO THE NATIONAL GRID OF PLN INDONESIA'S STATE POWER UTILITY FOR 30 YEARS THE CONSORTIUM PLANS TO PUT IN ABOUT 650 MILLION IN EQUITY FOR THE PROJECT THE COST OF WHICH IT ESTIMATES AT ABOUT 25 BILLION THE GOVERNMENT HAS AGREED TO LET THE COMPANIES PUT IN HALF OF THEIR EQUITY IN THE FORM OF SUBORDINATED LOANS THIS HELPS US MANAGE OUR TOTAL TAX BURDEN SAID ROBERT M EDGELL MISSION'S CHIEF OPERATING OFFICER OF THE 18 BILLION IN DEBT THAT THE PAITON PROJECT NEEDS THE CONSORTIUM EXPECTS AGENCIES SUCH AS THE US EXPORTIMPORT BANK AND JAPAN EXPORTIMPORT BANK TO PROVIDE ABOUT 14 BILLION FOR THE OTHER 400 MILLION THE CONSORTIUM HOPES TO RAISE SOME FROM MULTILATERAL AGENCIES AND THE REST FROM CAPITAL MARKETS PLANS CALL FOR A FOURYEAR CONSTRUCTION PERIOD WITH THE DEBT AMORTIZED IN THE FIRST 10 YEARS OF COMMERCIAL PRODUCTION THE PRICING FORMULA WITH DIFFERENT RATES FOR THREE DIFFERENT PERIODS IS SET UP TO REFLECT DEBTPAYMENT NEEDS CONSORTIUM MEMBERS SAID THE RATE IN THE FINAL STAGE IS ABOUT 60 OF THE FIRSTSTAGE RATE WHILE FIGURES WEREN'T DISCLOSED INDUSTRY SOURCES SAID THEY BELIEVE THAT DURING THE FIRST SEVEN YEARS INDONESIA'S PLN WILL PAY ABOUT 85 CENTS A KILOWATT HOUR MR EDGELL SAID HE'S CONFIDENT THE AGREEMENT WILL ATTRACT THE NEEDED 18 BILLION AND THAT IT CONTAINS NO GAPS THAT WILL REQUIRE RENEGOTIATION HE SAID HE HOPES FINANCING WILL BE ARRANGED WITHIN SIX MONTHS AND CERTAINLY BEFORE THE END OF THE YEAR 9402110171 940211 ALEX BROWN INC BALTIMORE ALEX BROWN INC FORMED ABS CAPITAL PARTNERS LP TO CARRY OUT THE BROKERAGE FIRM'S MERCHANTBANKING BUSINESS THE EXPANDED BANKING BUSINESS HAS AN INITIAL FUNDING OF 111 MILLION ALEX BROWN WHICH FORMED ITS MERCHANTBANKING OPERATION IN 1990 HAS TAKEN OWNERSHIP POSITIONS IN FIVE COMPANIES THROUGH THE MERCHANTBANKING BUSINESS THE BROKERAGE FIRM WILL BE THE LARGEST INSTITUTIONAL LIMITED PARTNER IN ABS CAPITAL OTHER INVESTORS INCLUDE PENSION FUNDS INDIVIDUALS AND FINANCIAL INSTITUTIONS 9402110170 940211 STATETV MONOPOLIES STUNT AD GROWTH AS WELL AS RATES IN EUROPE Y&R SAYS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN HOW IMPORTANT IS PRIVATE TELEVISION FOR A HEALTHY ADVERTISING MARKET FROM ITS NEW EUROPEAN MARKETING AND MEDIA SURVEY FOR 1994 YOUNG & RUBICAM EUROPE CONCLUDES THAT CONTRARY TO CONVENTIONAL WISDOM STATETELEVISION MONOPOLIES DEPRESS NOT ONLY ADVERTISING RATES BUT ALSO ADVERTISING SPENDING FOR OTHER MEDIA IN THE SAME MARKET IT'S CLEAR TO ME THAT STATE MONOPOLIES ARTIFICIALLY RESTRICT AND DEPRESS THE WHOLE ADVERTISING MARKET SAYS JANE PERRY WHO HEADED THE STUDY OF EUROPEAN ADVERTISING AND MEDIA HABITS AS MEDIA RESEARCH DIRECTOR FOR YOUNG & RUBICAM EUROPE A UNIT OF YOUNG & RUBICAM INC NEW YORK ADVERTISERS ARE NOT SPENDING AS MUCH AS THEY WOULD IN THOSE MARKETS AND THEREFORE IT HOLDS BACK THE NATURAL DEVELOPMENT OF THE MARKET FOR EXAMPLE IN SWITZERLAND AND FINLAND WHICH DON'T HAVE PRIVATE NATIONAL TELEVISION ADVERTISING EXPENDITURES FOR MEDIA REMAINED BASICALLY FLAT FOR THE PAST SEVEN TO EIGHT YEARS MS PERRY SAID TOTAL AD EXPENDITURES IN SWITZERLAND WERE 25 BILLION SWISS FRANCS 169 BILLION IN 1992 UP FROM 24 BILLION SWISS FRANCS IN 1986 USING CONSTANT 1985 PRICES THE SURVEY INDICATES LIKEWISE FINLAND'S TOTAL AD SPENDING REMAINED AT 32 BILLION FINNISH MARKKAS 5667 MILLION OR THE SAME AS IN 1984 AT CONSTANT 1985 PRICES THAT COMPARES WITH MARKETS LIKE ITALY FRANCE AND GERMANY THAT HAVE PRIVATE CHANNELS AND HAVE SEEN DRAMATIC GROWTH IN AD SPENDING IN ITALY FOR EXAMPLE AD SPENDING MORE THAN DOUBLED TO 63 TRILLION LIRE 373 BILLION IN 1992 FROM 28 TRILLION LIRE IN 1982 AGAIN USING CONSTANT 1985 PRICES GERMAN AD SPENDING IN THAT PERIOD NEARLY DOUBLED TO 237 BILLION MARKS 1347 BILLION IN 1992 FROM 133 BILLION MARKS IN 1982 ALL DOLLAR CONVERSIONS ARE BASED ON CURRENT EXCHANGE RATES FOR ITS FOURTH CONSECUTIVE ANNUAL MEDIA SURVEY YOUNG & RUBICAM EUROPE GATHERED ECONOMIC DEMOGRAPHIC MEDIA AND ADVERTISING STATISTICS FOR 22 EUROPEAN COUNTRIES FROM ORGANIZATIONS AND ASSOCIATIONS IN EACH COUNTRY RESPONSIBLE FOR OFFICIAL DATA MS PERRY SAYS IT STANDARDIZED THE FIGURES FOR COMPARISON UNTIL 1988 ONLY FOUR COUNTRIES ITALY FRANCE GERMANY AND THE UK HAD PRIVATE NATIONAL TELEVISION MS PERRY NOTES BUT THE CONTINUOUS INTRODUCTION OF PRIVATE CABLE AND SATELLITE CHANNELS OVER THE PAST FIVE YEARS HAS DRAMATICALLY ALTERED THE ADVERTISING CLIMATE YOUNG & RUBICAM EUROPE SAYS TODAY ONLY FOUR COUNTRIES REMAIN WITH STATE MONOPOLIES SWITZERLAND FINLAND IRELAND AND AUSTRIA NORMALLY YOU FIND THAT THE ABSENCE OF A LIVELY TVAD MARKET AFFECTS OTHER MEDIA ADVERTISING MS PERRY SAYS AS AD SPENDING FOR TV INCREASES SPENDING IN OTHER MEDIA DOES AS WELL CONTRARY TO WHAT MANY NEWSPAPERS AND MAGAZINE PUBLISHERS HAVE FEARED PRIVATETELEVISION ADVERTISING DOESN'T STEAL PRINT ADVERTISING BUT INSTEAD EXPANDS TOTAL AD SPENDING THE STUDY FOUND I'VE FOUND NO LONGTERM RELATIONSHIP BETWEEN TELEVISION GAINING ADVERTISING AND PRESS LOSING MS PERRY SAYS PRESS MIGHT LOSE ITS SHARE OF ADVERTISING AS A WHOLE BUT THE TOTAL HAS BECOME BIGGER SO ADVERTISING ON TV IS ULTIMATELY BENEFICIAL FOR EVERYONE THE YOUNG & RUBICAM EUROPE STUDY ALSO FOUND ADDING TELEVISION CHANNELS TENDS TO CHANGE PROGRAMMING CONTENT AND VIEWING BEHAVIOR THE FIRST THING YOU NOTICE IS AN IMPROVEMENT IN PROGRAM QUALITY MS PERRY SAYS THERE BECOMES A DIFFERENCE BETWEEN WHAT THE CONSUMER WANTS TO WATCH AND WHAT THE GOVERNMENT WANTS THE CONSUMER TO WATCH TYPICALLY A COUNTRY THAT HAS STATE TELEVISION AS WELL AS PRIVATE TELEVISION WILL SEE THE TWO CONVERGE IN TERMS OF PROGRAM QUALITY SHE SAYS PUBLICSERVICE BROADCASTERS SUDDENLY REACT WHEN NEW CHANNELS COME ALONG INSTEAD OF LOWCOST DISCUSSION PROGRAMS HEAVY DOCUMENTARIES AND LOTS OF POLITICIANS' SPEECHES THEY INTRODUCE GAME SHOWS AND OTHER THINGS TO LIVEN IT UP SHE SAYS ON THE OTHER HAND THE PRIVATE BROADCASTER SEEKS CREDIBILITY AND WILL INTRODUCE SERIOUS PROGRAMMING ORIGINAL PRODUCTIONS AND DOCUMENTARIES TO GAIN VIEWERS' AND ADVERTIERS' RESPECT ONE SURPRISING CONCLUSION IN THE STUDY IS THAT AVAILABILITY OF PRIVATE TELEVISION DOESN'T NECESSARILY INCREASE THE HOURS VIEWERS TUNE IN INSTEAD INCREASES IN VIEWING HOURS CORRESPOND WITH THE NUMBER OF HOURS BROADCAST A DAY QUALITY OF PROGRAMMING DOESN'T APPEAR TO INFLUENCE HOW LONG VIEWERS WATCH ALL OVER THE WORLD I'VE FOUND THAT IF THE TV IS THERE PEOPLE WILL WATCH IT AND THEY DON'T REALLY CARE WHAT'S ON MS PERRY SAYS VIEWING HOURS ALSO DEPEND ON WEATHER TIME SPENT IN THE HOME AND THE NUMBER OF TELEVISION SETS PER HOUSEHOLD MS PERRY SAYS ACCORDING TO THE STUDY THE MOST AVID VIEWERS ARE IN BRITAIN WHERE THEY WATCH AN AVERAGE OF 35 HOURS A DAY FOLLOWED BY SPAIN WITH 33 HOURS ITALY AND GREECE WITH THREE HOURS SEVEN MINUTES AND FRANCE THREE HOURS FIVE MINUTES THE SWISS WATCH THE LEAST ONE HOUR 54 MINUTES A DAY 9402110169 940211 MAKER OF THE CLUB CAR ANTITHEFT DEVICE MOVED AGAINST RIVAL SPURRED LAWSUIT BY LISA L BROWNLEE STAFF REPORTER OF THE WALL STREET JOURNAL WINNER INTERNATIONAL CORP MAKER OF WELLKNOWN CAR ANTITHEFT DEVICE THE CLUB TOOK AN UNUSUAL STEP TO LOCK OUT COMPETITORS OF THE POPULAR PRODUCT AND FOUND ITSELF IN A LEGAL TANGLE WINNER THE UNDISPUTED LEADER IN THE AUTOMOBILE STEERINGWHEELLOCK MARKET WROTE TO ONE OF ITS DISTRIBUTORS DEMANDING THAT IT STOP SELLING A COMPETITIVE STEERINGWHEEL LOCK MADE BY KRYPTONITE CORP THE LETTER LAST FALL TO RETAILER BEVERLY HILLS MOTORING ACCESSORIES CHARGED THAT KRYPTONITE'S LOCK AND ITS PACKAGING WERE TOO SIMILAR TO THE CLUB'S AND VIOLATED THE LAW AND ANY ENTITY WITHIN THE CHAIN OF DISTRIBUTION CAN BE LIABLE FOR INFRINGEMENT ON THE CLUB'S TRADE DRESS THE LETTER SAID THE LETTER POINTED OUT A NUMBER OF ACTIONS AGAINST PRODUCTS THAT WINNER SAID INFRINGED ON THE CLUB'S PATENTS OR TRADE DRESS BUT SIGNIFICANTLY WINNER HADN'T STARTED ANY LEGAL ACTION DIRECTLY AGAINST KRYPTONITE AND DIDN'T NOTIFY KRYPTONITE BEFORE THREATENING ACTION AGAINST THE SELLER THE LETTER TO THE DISTRIBUTOR PROMPTED KRYPTONITE BASED IN CANTON MASS TO SUE WINNER CHARGING OBSTRUCTION OF BUSINESS AND THE TWO COMPANIES IN LATE JANUARY REACHED A PRELIMINARY SETTLEMENT IN WHICH WINNER AGREED TO SEND NO MORE LETTERS INTELLECTUALPROPERTY SPECIALISTS FIND THE CLUB MAKER'S AGGRESSIVE APPROACH HIGHLY UNUSUAL MICHAEL BLOMMER EXECUTIVE DIRECTOR OF THE AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION IN ARLINGTON VA SAID ATTACKING A COMPETITOR THROUGH A THIRD PARTY IS VERY RARE INDEED BECAUSE SUCH MOVES ARE LIKELY TO PROMPT LAWSUITS YOU OPEN YOURSELF UP TO A CLAIM THAT YOU INTERFERED IN CONTRACTUAL RELATIONS WITH THE DISTRIBUTOR SAID NEW YORK LAWYER KENNETH MADSEN DAVID BERNSTEIN ANOTHER NEW YORK LAWYER WHO SPECIALIZES IN INTELLECTUAL PROPERTY SAID HE HAS CONTACTED DISTRIBUTORS BUT WITH CAUTION IN CASES WHERE HIS CLIENT HAS A COURT ORDER TO INTERRUPT A COMPETING PRODUCT'S SALE OR WHERE THE PRODUCER'S IDENTITY IS AMBIGUOUS NEITHER WAS THE CASE WITH KRYPTONITE WINNER KNEW WHO MANUFACTURED THE LOCK BEFORE THE COMPETITOR HIT THE MARKET LATE LAST YEAR AND THERE WAS NO COURT ORDER FOR SELLERS TO PULL THE DEVICE WINNER SPOKESMAN TOM MCCARTNEY SAID WINNER'S LEGAL COUNSEL CONSIDERS THE THIRDPARTY LETTER A NORMAL REACTION THE COMPANY HAS DONE BEFORE TO WARN COMPETITORS THEY MAY BE BREAKING THE LAW AND COULD FACE LEGAL ACTION WINNER HAS MAINTAINED AN AGGRESSIVE CAMPAIGN AGAINST ALLEGED IMITATORS OF THE CLUB THE ANTITHEFT DEVICE THAT VIRTUALLY CREATED THE MARKET THE SHARON PA COMPANY IS SAID TO CONTROL 75 OF THE 130 MILLION MARKET THAT HAS ATTRACTED SCORES OF COMPETITORS BEVERLY HILLS PRESIDENT ANDY COHEN SAID HIS COMPANY MADE IT CLEAR IN ITS CATALOG THAT THE KRYPTONITE LOCK WASN'T THE CLUB HE SAID KRYPTONITE'S BRAND NAME WAS MARKED PLAINLY MR COHEN SELLS THE KRYPTONITE LOCK FOR 8995 COMPARED WITH 4495 FOR THE CLUB AND ALTHOUGH THEY BOTH COME IN RED AND WOULD HIT A WINDSHIELD KEEPING A STEERING WHEEL FROM TURNING THE DEVICES HAVE DIFFERENT STEERINGWHEEL ATTACHMENTS BUT WINNER'S MR MCCARTNEY POINTED OUT THE CLUB WHICH THE BEVERLY HILLS CALIF RETAILER ALSO SELLS WASN'T IN THAT CATALOG AND PEOPLE THEREFORE MIGHT IDENTIFY THE KRYPTONITE LOCK AS THE CLUB THE UPSHOT OF THE DISPUTE IS THAT DESPITE THE TENTATIVE AGREEMENT UNDER WHICH WINNER SAID IT WON'T WRITE ANY MORE LETTERS TO RETAILERS ABOUT KRYPTONITE THE NEWCOMER STILL ISN'T SATISFIED PRESIDENT PETER ZANE SAID HIS COMPANY WHICH FILED ITS SUIT IN DECEMBER IN A US DISTRICT COURT IN MASSACHUSETTS WILL SEEK A JUDGMENT SO IT HAS AMMUNITION IF WINNER DOESN'T KEEP ITS PROMISES A COURT DATE HASN'T BEEN SET 9402110168 940211 FINANCING BUSINESS PRATT HOTEL CORP PRATT HOTEL CORP DALLAS SAID ITS SUBSIDIARIES GB PROPERTY FUNDING CORP AND PRT FUNDING CORP SOLD 270 MILLION OF DEBT SECURITIES GB PROPERTY SOLD 185 MILLION OF 10 7/8 FIRST MORTGAGE NOTES GUARANTEED BY GREATE BAY HOTEL & CASINO INC AND GB HOLDINGS INC AND SECURED BY A FIRST LIEN ON THE SANDS HOTEL & CASINO IN ATLANTIC CITY NJ PRT FUNDING SOLD 85 MILLION OF 11 5/8 SENIOR NOTES GUARANTEED BY ITS PARENT COMPANY PRATT CASINO CORP PRATT HOTEL SAID PROCEEDS OF THE OFFERINGS WILL BE USED TO REFINANCE MUCH OF THE EXISTING DEBT OF ITS SUBSIDIARIES SALOMON BROTHERS LED THE UNDERWRITING GROUP THE OFFERINGS ARE EXPECTED TO CLOSE FEB 17 9402110166 940211 US HOLDS OUT SLIM HOPE FOR TRADE PACT WITH JAPAN AHEAD OF TODAY'S SUMMIT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER 13 HOURS OF FUTILE NEGOTIATIONS US OFFICIALS HELD OUT THE TINIEST GLIMMER OF HOPE THAT THEY STILL MIGHT REACH A TRADE DEAL WITH JAPAN TODAY BUT LATE LAST NIGHT NONE OF THEM KNEW EXACTLY HOW INSTEAD ON THE EVE OF A SUMMIT MEETING TODAY BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON THE TWO SIDES WERE LOCKED IN A GAME OF HIGHSTAKES BRINKSMANSHIP JAPANESE FOREIGN MINISTER TSUTOMU HATA WHO ARRIVED FOR NEGOTIATIONS A DAY EARLY SPENT ALL DAY YESTERDAY SHUTTLING BETWEEN US CABINET OFFICIALS AND GETTING REBUFFED AT EVERY TURN OFFICIALS RANGING FROM US TRADE REPRESENTATIVE MICKEY KANTOR TO VICE PRESIDENT AL GORE TO TREASURY SECRETARY LLOYD BENTSEN TOLD MR HATA THAT JAPAN HAD TO AGREE TO IMPORT GOALS AND WAYS TO MEASURE PROGRESS TOWARD THOSE GOALS MR HATA JUST AS RESOLUTELY TOLD THE US OFFICIALS THAT JAPAN WOULDN'T MAKE ANY SUCH CONCESSIONS AT 9 PM MR KANTOR TOLD THE JAPANESE THAT THE TALKS AGAIN WERE SUSPENDED BUT MR KANTOR WAS BANKING ON HOPES THAT MR HATA WOULD MEET WITH HIS BOSS MR HOSOKAWA WHO ARRIVED IN WASHINGTON AROUND DINNER TIME THE US HOPED THAT MR HATA'S BLEAK REPORT WOULD PUT PRESSURE ON MR HOSOKAWA TO MAKE CONCESSIONS IN THAT CASE THEY EXPECTED MR HATA TO TRY ONE MORE ROUND OF TALKS PRESIDENT CLINTON AND PRIME MINISTER HOSOKAWA ARE SUPPOSED TO WRAP UP THE SOCALLED FRAMEWORK TRADE TALKS TODAY THE TWO LEADERS ARE TO CONFER FOR ABOUT 2 1/2 HOURS AND COMPLETE A PACT COVERING AUTOS AUTO PARTS INSURANCE MEDICAL EQUIPMENT AND TELECOMMUNICATIONS BUT THE TWO SIDES REMAIN DEADLOCKED OVER US INSISTENCE THAT JAPAN AGREE TO NUMERICAL TARGETS THE ONLY CAUSE FOR OPTIMISM THAT US OFFICIALS COULD CITE IS HISTORY SINCE THE END OF WORLD WAR II THE TWO SIDES HAVE NEVER REACHED A DEADLINE FOR A TRADE PACT AND WALKED AWAY WITHOUT ONE INDEED SOME US OFFICIALS BELIEVE THE JAPANESE ARE HANGING TOUGH BECAUSE THEY BELIEVE THAT THE US IN THE END WILL ACCEPT A COSMETIC AGREEMENT RATHER THAN FACE A RUPTURE IN RELATIONS THAT'S ONE REASON THAT US OFFICIALS ADOPTED A COMMON STRATEGY OF BANGING ON MR HATA IF THE JAPANESE ACCEPT THAT THE US IS FINALLY SERIOUS THEY BELIEVE THEY MAY MAKE LASTMINUTE CONCESSIONS THE DAY STARTED MORE PLEASANTLY AFTER AN 8 AM MEETING WITH MR HATA TRADE REPRESENTATIVE KANTOR CALLED OFF A WEDNESDAY SUSPENSION OF TALKS MR HATA INDICATED SOME FLEXIBILITY ON THE QUESTION OF NUMERICAL GOALS US OFFICIALS SAID AT THE SAME TIME THE US SIDE SEARCHED FOR SUBSTITUTES FOR THE TERM QUANTITATIVE INDICATORS WHICH IS CONTAINED IN AN EARLIER FRAMEWORK DOCUMENT BUT WHICH JAPAN TAKES AS FIGHTING WORDS THE JAPANESE COMPLAIN THAT THE US WILL LATER INTERPRET SUCH INDICATORS AS FIRM COMMITMENTS AND TRY TO IMPOSE TRADE SANCTIONS IF JAPAN DOESN'T MEET THE NUMBERS FOR THEIR PART JAPANESE NEGOTIATORS WERE CHEERED BY RUMORS THAT THE US WOULD SOON INTRODUCE A NEW PLAN BUT BY MIDDAY BOTH SIDES WERE GLUM JAPAN BALKED AT ANY PLAN THAT USED NUMBERS THE US DIDN'T COME THROUGH WITH ANOTHER PLAN THE REST OF THE DAY WAS SPENT IN TEDIOUS RITUALISTIC NEGOTIATIONS IT ISN'T CLEAR WHETHER WE'LL HAVE ANY AGREEMENT AT ALL SAID A SENIOR US NEGOTIATOR IN A SENTIMENT THAT WAS REFLECTED BY HIS JAPANESE COUNTERPARTS IN SOME WAYS THE TWO SIDES SEEMED TO BE PREPARING FOR A BREAKDOWN TODAY BY TRYING TO CONTAIN THE DAMAGE EACH EMPHASIZED THE FRIENDSHIP BETWEEN THE TWO COUNTRIES AND EXPRESSED HOPE THAT THE TRADE DISPUTE WOULDN'T POISON RELATIONS BUT NEGOTIATORS WEREN'T GIVING UP AND LEFT OPEN THE POSSIBILITY THAT SOME SORT OF BREAKTHROUGH COULD STILL BE ACHIEVED IN AN EFFORT TO STRENGTHEN MR CLINTON'S NEGOTIATING POSITION IN HIS MEETING WITH MR HOSOKAWA THE SENATE BANKING COMMITTEE YESTERDAY APPROVED A BILL DESIGNED TO OPEN FOREIGN MARKETS TO AMERICAN FINANCIAL COMPANIES THE FAIR TRADE IN FINANCIAL SERVICES ACT WHICH CONGRESS IS EXPECTED TO PASS QUICKLY WOULD GIVE THE US NEW POWERS TO RETALIATE AGAINST BANKS INSURANCE COMPANIES AND BROKERAGE FIRMS FROM COUNTRIES THAT CLOSE THEIR MARKETS TO US FIRMS THE BILL WOULD ALLOW THE US TO BLOCK THE EXPANSION OF FOREIGN BANKS AND FINANCIALSERVICE COMPANIES IN THE US IF THE TREASURY FINDS THAT THOSE FIRMS OPERATE FROM COUNTRIES THAT RESTRICT AMERICAN ACCESS TO THEIR MARKETS 9402110165 940211 FINANCING BUSINESS FEDERAL INDUSTRIES LTD FEDERAL INDUSTRIES LTD WINNIPEG MANITOBA SAID IT EXPECTS TO RAISE 84 MILLION CANADIAN DOLLARS US625 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF 10 MILLION CLASS A COMMON SHARES AT C840 US625 A SHARE FEDERAL A TRANSPORTATION AND METALS DISTRIBUTION CONCERN HAS 409 MILLION CLASS A SHARES OUTSTANDING IT SAID ABOUT C55 MILLION OF THE PROCEEDS FROM THE SALE WILL BE USED TO REDEEM ITS 7 1/2 CUMULATIVE REDEEMABLE CONVERTIBLE CLASS II PREFERRED SHARES SERIES D THE BALANCE WILL BE ADDED TO WORKING CAPITAL THE UNDERWRITING GROUP IS LED BY RBC DOMINION SECURITIES INC 9402110164 940211 TELECOMMUNICATIONS A SPECIAL REPORT WIRELESS WARRIOR GADFLY OR GURU ANDY SEYBOLD NEWSLETTER WRITER CONSULTANT EVANGELIST IS HELPING TO SHAPE THE WIRELESS INDUSTRY WHO IS THIS GUY ANYWAY BY CHARLES MCCOY BOULDER CREEK CALIF PEOPLE ALWAYS FIGURED ANDY SEYBOLD HAD A FUTURE IN RADIO AT AGE SEVEN HE STRETCHED A WIRE BETWEEN TWO TIN CANS AND RAN IT ACROSS SEVERAL VACANT LOTS TO ESTABLISH VOICE COMMUNICATIONS WITH A FRIEND'S HOUSE MORE THAN 500 FEET AWAY LATER MUCH TO HIS PARENTS' DISMAY HE CANNIBALIZED PARTS FROM THE FAMILY TV TO BUILD A TRANSMITTER FOR HIS FIRST HAM RADIO IN PHILADELPHIA IN THE LATE 1960S HE BRIEFLY TOOK TO THE COMMERCIAL AIRWAVES UNDER THE NAME HERMAN J FERTINWANGLER ROCKANDROLL DJ HE STARTED EVERY PROGRAM BY SPINNING CHARLIE BROWN HE'S THAT CLOWN FOLLOWED BY A TAPED RECORDING OF A TOILET FLUSHING MR SEYBOLD'S OWN DREAMS OF A CAREER IN CONVENTIONAL RADIO EVENTUALLY WENT DOWN THE DRAIN BUT THROUGH A CURIOUS CHAIN OF EVENTS MR SEYBOLD AT THE AGE OF 47 HAS HIT IT BIG IN A MODERNDAY HIGHTECH RADIO OFFSHOOT WIRELESS COMMUNICATIONS AND COMPUTING COMBINING TECHNICAL KNOWHOW AND A SHOWMAN'S FLAIR FOR SELFPROMOTION MR SEYBOLD HAS POSITIONED HIMSELF AS ONE OF THE PRINCIPAL ENVANGELISTS OF THE DAWNING AGE OF MOBILE COMPUTING AND WIRELESS COMMUNICATIONS USING RADIO WAVES TO SEND DATA AND VOICE FROM SMALL PORTABLE DEVICES HIS MONTHLY NEWSLETTER ANDREW SEYBOLD'S OUTLOOK ON MOBILE COMPUTING IS DEVOURED BY TECHNOWONKS AND PRAISED BY TOP WIRELESS EXECUTIVES AT THE LIKES OF MOTOROLA INC AND GENERAL ELECTRIC CO AS A BULLHORN FOR GETTING THE WIRELESS GOSPEL OUT TO CONSUMERS SUCH COMPANIES AS APPLE COMPUTER INC AND HEWLETTPACKARD CO SOMETIMES SEND HIM PROTOTYPES OF THEIR LATEST WIRELESS GIZMOS SO HE CAN PLAY WITH THEM AND REPORT BACK ON ANY FLAWS HIS SEMINARS AND CONFERENCE APPEARANCES DRAW PACKED HOUSES HIS DAILY CONSULTING FEES NOW OCCASIONALLY APPROACH FIVE FIGURES IF THERE ARE ANY DOUBTS ABOUT THE SCOPE OF HIS INFLUENCE ON THE WIRELESS MOVEMENT JUST ASK HIM I HAVE A RARE COMBINATION OF EXPERTISE IN RADIO AND COMPUTERS THE TWIN AXES OF THE WIRELESS REVOLUTION MR SEYBOLD RUMBLES IN A DEEP VOICE MADE GRAVELLY BY CIGARETTES THAT MAKES ME UNIQUE IN THIS ARENA IN FACT I AM A PROTOTYPICAL WIRELESS WARRIOR IS THIS A BUNCH OF HOT AIRWAVES WELL EVEN MR SEYBOLD HIMSELF OCCASIONALLY INTERRUPTS CONVERSATIONS TO WARN LISTENERS THEY MUST SEPARATE EGO FROM REALITY SOME IN THE INDUSTRY DISMISS HIM AS A BLOWHARD OR WORSE ANDY IS A PAIN SAYS BOB RATLIFFE VICE PRESIDENT OF CORPORATE COMMUNICATIONS FOR MCCAW CELLULAR COMMUNICATIONS INC WHICH HAS BEEN FEUDING WITH MR SEYBOLD OVER HIS BLUNT CRITICISM OF AN AVANTGARDE CELLULARPHONE TECHNOLOGY THAT MCCAW IS PROMOTING AS A POSSIBLE INDUSTRY STANDARD HE'S STRICTLY A SELFPROCLAIMED WIRELESS GURU MR RATLIFFE SAYS WE'RE NOT IMPRESSED STILL TO A DEGREE RARE FOR A CONSULTANTCUMANALYSTCUMGADGETHEAD MR SEYBOLD DOES APPEAR TO BE HELPING TO SHAPE THE DEVELOPMENT OF THE EMERGING WIRELESS DATA INDUSTRY ITS PRODUCTS ITS MARKETING STRATEGIES ITS FLEDGLING ATTEMPTS TO DEVELOP STANDARDIZED SYSTEMS RICHARD DUFOSSE DIRECTOR OF DEVELOPMENT FOR LOTUS DEVELOPMENT CORP SAYS ANDY ISN'T IN THE ADVANCE GUARD OF WIRELESS HE IS THE ADVANCE GUARD OF WIRELESS MR SEYBOLD DOESN'T TRY TO HIDE THE VINDICATION HE FEELS FROM THIS KIND OF RECOGNITION THE SEYBOLD FAMILY IS WELLKNOWN IN THE WORLD OF HIGHTECH CONSULTING AND NEWSLETTERS BUT UNTIL RECENTLY ANDY WAS CONSIDERED SOMETHING OF A BLACK SHEEP HIS FATHER JOHN TOOK UP HIGHTECH TINKERING IN HIS 40S DEVELOPED TECHNOLOGIES THAT LED TO TODAY'S COMPUTERIZED TYPESETTING AND STARTED SEVERAL NEWSLETTERS ANDY'S OLDER BROTHER JONATHAN AND HIS YOUNGER SISTER PATRICIA BOTH WERE PRECOCIOUS OVERACHIEVERS WHO YEARS AGO BECAME WEALTHY AND INFLUENTIAL THROUGH THEIR OWN HIGHTECH NEWSLETTERS AND CONSULTING BUSINESSES ANDY SEYBOLD HAS HAD A ROUGHER RIDE DYSLEXIC AND COLORBLIND HE STRUGGLED IN HIGH SCHOOL DROPPED OUT OF COLLEGE AND BECAME A HIGHTECH GYPSY WANDERING THROUGH JOBS MOSTLY IN ELECTRONICS MOSTLY AS A SALESMAN HE HAD SOME SUCCESSES HE HELPED DEVELOP SOME OF THE EARLIEST TWOWAY RADIOS FOR PARAMEDICS AND EMERGENCY PERSONNEL AND HE WAS AN EARLY DEVOTEE OF APPLE COMPUTERS AND CONSULTANT TO THE GARAGEBOUND STEVE JOBS BUT THEN A COMPUTER NEWSLETTER HE PUBLISHED SWOONED IN 1990 MR SEYBOLD'S COMPANY FILED FOR BANKRUPTCY PROTECTION MEANWHILE FRICTION BETWEEN MR SEYBOLD AND HIS BROTHER JONATHAN WHICH SOME FRIENDS AND FAMILY MEMBERS ATTRIBUTE TO BITTER SIBLING RIVALRY COMPOUNDED BY BUSINESS DISPUTES HAS LEFT THEIR RELATIONSHIP STRAINED TO THIS DAY INDEED THEY ARE FIGHTING IN COURT OVER THE USE OF THE SEYBOLD NAME ANDY SEEMS TO RESENT HOW EASILY THINGS CAME FOR OTHERS PARTICULARLY JONATHAN A FAMILY FRIEND SAYS HE'S ALWAYS WANTED TO DO SOMETHING TO PROVE TO THE WORLD THAT HE WAS JUST AS GOOD AS ANY OF THE SEYBOLDS WIRELESS CAME ALONG JUST IN TIME SHORTLY AFTER HIS COMPANY TANKED WHILE REGROUPING AS AN ANALYST FOR DATAQUEST INC MR SEYBOLD HAD THE VISION OF BECOMING THE WIRELESS WARRIOR AS HE NOW STYLES HIMSELF CELLULAR PHONES WERE ALREADY BECOMING WIDESPREAD AND WIRELESS LOCALAREA NETWORKS HAD BEEN DEVELOPED BUT NOT MANY PEOPLE HAD GRASPED THE POTENTIAL FOR LINKING COMPUTERS AND TELECOMMUNICATIONS WIRELESSLY MR SEYBOLD RECALLS I SAW AN OPENING THERE HE BEGAN INSERTING A SECTION ON MOBILE COMPUTING IN HIS REVIVED COMPUTER NEWSLETTER IN JUNE 1992 AT THE START OF LAST YEAR THE STANDALONE MOBILECOMPUTING NEWSLETTER WAS BORN SINCE THEN FROM A MOUNTAIN LAIR DEEP IN THE REDWOOD COUNTRY EAST OF SANTA CRUZ MR SEYBOLD HAS BEEN TRYING TO BECOME THE NEW WIRELESS MAN A RADIO TOWER AND A SATELLITE DISH PLANTED IN HIS YARD COAX DATA FROM THE ETHER THE SHELVES OF HIS SMALL OFFICE SPORT A HALFDOZEN CELLULAR PHONES AND WALKIETALKIES IN VARIOUS STATES OF ASSEMBLY HE OPENS A DESK DRAWER TO REVEAL A HOST OF PORTABLE COMPUTERS THE 15BY20FOOT OFFICE CONTAINS NO FEWER THAN SIX DESKTOP PCS BUT THOSE ARE HOOKED UP TO PHONE LINES HE WEARS HIS PAGER EVERY WAKING MINUTE AND KEEPS IT ON THE NIGHTSTAND WHEN HE SLEEPS A PALMTOP PC WITH RADIO MODEM WHICH SERVES AS A WIRELESS ELECTRONICMAIL GADGET RARELY LEAVES HIS SIDE THE HOME'S HEATING SYSTEMS LIGHTS AND EVEN ITS COFFEE MAKER ARE CONTROLLED BY COMPUTER THOUGH ONLY PARTLY BY WIRELESS MEANS BECAUSE HE LAMENTS THE TECHNOLOGY TO DO MORE WITHOUT WIRES ISN'T HERE YET WHAT MR SEYBOLD HAS DONE HERE ON THE MOUNTAINTOP REFLECTS HIS VISION OF WHAT WIRELESS COULD EVENTUALLY MEAN FOR PEOPLE SELFSUFFICIENCY FREEDOM FLEXIBILITY LIGHTING A CIGARETTE MR SEYBOLD SAYS HE'S DOWN TO A PACK A DAY HE SAYS THE DAY WILL COME WHEN THE WIRELESS WARRIOR CAN BE ALMOST SELFCONTAINED SOMEDAY I'LL HAVE EVERYTHING I NEED TO WORK AND LIVE ON THIS MOUNTAINTOP AND IT WON'T HAVE ANY WIRES THINK OF IT BUT THAT DAY IS STILL DISTANT SOMETHING MR SEYBOLD KNOWS AS WELL AS ANYONE THE TREES AND HILLS AROUND HIS HOUSE OFTEN JAM HIS CELLULARPHONE SIGNALS AND PREVENT HIM FROM EVER HOOKING UP TO THE RAM MOBILE DATA WIRELESS DATA NETWORK WHICH HE HAS PRAISED IN HIS NEWSLETTER IT'S TERRIBLE HE MOANS HIS TALES OF MOBILE COMMUNICATIONS WOES FROM THE ROAD ARE LEGION AT A HOTEL IN ATLANTA HE ONCE WANDERED THE HALLS FOR HOURS MOBILE PHONE IN FRONT OF HIM LIKE A DOWSER'S WATER WAND TRYING TO FIGURE OUT WHICH ROOM WOULD HAVE THE STRONGEST RADIO SIGNAL SECURITY GUARDS THOUGHT HE MIGHT BE PLANTING A BOMB AND ALMOST THREW HIM OUT AT THE HILTON HOTEL IN SEOUL SOUTH KOREA DESPERATE TO FILE DATA FROM HIS LAPTOP AND UNABLE TO FIND A PROPER PHONE JACK MR SEYBOLD FINALLY INSTALLED ONE HE HAD BROUGHT FROM HOME ON SUBSEQUENT TRIPS HE INSTALLED JACKS IN TWO OTHER ROOMS NOW WHEN I GO TO SEOUL I ASK FOR ONE OF THOSE THREE ROOMS HE SAYS WORKS EVERY TIME ON MANY OCCASIONS HE HAS SENT LARGE SECTIONS OF HIS NEWSLETTER AND OTHER DATA INTO OBLIVION BECAUSE OF MYSTERIOUS MOBILE COMPUTER MALFUNCTIONS AND IN PERHAPS HIS MOST GALLING MOMENT HE ONCE HAD TO CALL A REPORTER WHO WAS SEEKING COMMENT ABOUT A WIRELESS NEWS DEVELOPMENT FROM A PAY PHONE A PAY PHONE BECAUSE HE HAD LEFT HIS CELLULAR PHONE AT HOME THAT WAS EMBARRASSING HE RECALLS MR SEYBOLD USES SUCH NIGHTMARES TO HELP CONVEY SOME OF HIS MAIN THEMES ABOUT WIRELESS AS WE NOW KNOW IT ONE IS A POINT THAT MR SEYBOLD WHO BACK IN HIS HERMAN J FERTINWANGLER DAYS WAS KNOWN FOR SUCH ONAIR PRANKS AS URGING LISTENERS TO GIVE TOLLBOOTH ATTENDANTS THE WRONG CHANGE DURING MORNING RUSH HOUR HAMMERS HOME WITH CARNIVAL FLAIR AT EVERY APPEARANCE HE LUGS OUT A BULKY SATCHEL PROCLAIMS THAT THIS IS WHAT YOU NEED TO BE MOBILE NOW AND PROCEEDS TO PULL OUT DOZENS OF GADGETS CABLES CONNECTORS AND POWER SOURCES THE EFFECT IS SOMETHING LIKE THE CIRCUS CAR THAT SPILLS OUT CLOWN AFTER CLOWN THE POINT IS THAT TODAY'S DEVICES STILL AREN'T VERY MOBILE HE SAYS INDEED MR SEYBOLD ARGUES THAT MANY COMPANIES ARE FOCUSING TOO MUCH ON PIEINTHESKY FUTURE WIRELESS TECHNOLOGIES WHEN THEY SHOULD BE PERFECTING TODAY'S DEVICES AND BUILDING MARKETS FOR WIRELESS TECHNOLOGY CLOSER TO HAND THINGS LIKE WIRELESS EMAIL AND IMPROVED WIRELESS MODEMS THAT WILL ALLOW USERS TO MAKE WIRELESS CONNECTIONS BETWEEN THEIR PORTABLE DEVICES AND THEIR DESKTOP COMPUTERS WITHOUT RAPID PROGRESS IN SUCH AREAS MR SEYBOLD SAYS THE WIRELESS MOVEMENT RISKS ALIENATING CONSUMERS WITH TOO MUCH HYPE ABOUT DAZZLING TECHNOLOGY THAT MAY NEVER PAN OUT USEFULNESS NOW THERE'S TOO MUCH FOCUS ON THE ONEDEVICE SCENARIO HE SAYS THE MOBILE COMPANION THAT DOES EVERYTHING PHONE EMAIL COMPUTER FAX MOWS THE LAWN GETS YOU DATES THAT'S WAY DOWN THE LINE TO BUILD MARKETS AND KEEP CONSUMERS' ATTENTION WE NEED PRODUCTS THAT PROVIDE USEFUL FUNCTIONALITY NOW SOME PRODUCTS IN THE WIRELESS HEREANDNOW FIT THAT DESCRIPTION MR SEYBOLD SAYS ONE EXAMPLE IS A NEW OFFERING FROM TRAVELING SOFTWARE INC OF BOTHELL WASH AND NATIONAL SEMICONDUCTOR CORP OF SANTA CLARA CALIF WHICH HAVE PACKAGED TRAVELING'S LAPLINK WIRELESSCOMMUNICATIONS SOFTWARE AND NATIONAL SEMI'S AIRSHARE TRANSMITTER AND RECEIVER AND ARE SELLING THE COMBINATION AS A WIRELESS DOCKING STATION IT ALLOWS A PORTABLE COMPUTER TO COMMUNICATE WIRELESSLY WITH A COMPANION DESKTOP PC AUTOMATICALLY TRIGGERING ANY TRANSMISSIONS WHEN THE PORTABLE COMES WITHIN 30 FEET OF THE OTHER COMPUTER NO CABLES TO CONNECT NO LOGGING ON NO COMMANDS TO INPUT MR SEYBOLD NOTES OTHER PRODUCTS MR SEYBOLD IS HIGH ON INCLUDE SOCALLED PCMCIA MODEMS WIRELESS DEVICES ABOUT THE SIZE OF CREDIT CARDS THAT WILL SLIDE INTO SLOTS BEING BUILT INTO MANY NEW PORTABLE COMPUTERS AND EMAIL DEVICES THESE MODEMS WHICH PROBABLY WON'T HIT THE MARKET FOR ANOTHER SIX MONTHS WILL REPLACE OUTBOARD MODEMS THAT ARE ABOUT THE SIZE OF A POCKET CELLULAR PHONE INTEL CORP AND MEGAHERTZ CORP OF SALT LAKE CITY HAVE HOT PROTOTYPES MR SEYBOLD SAYS UNLESS COMPANIES COME UP WITH MORE PRACTICAL PRODUCTS LIKE THESE MR SEYBOLD SAYS THE INDUSTRY COULD FACE WHAT HE CALLS THE DREADED NEWTON EFFECT AFTER APPLE'S MUCHBALLYHOOED PERSONAL DIGITAL ASSISTANT A PALMSIZED PENCONTROLLED COMPUTER THE DEVICE'S HANDWRITINGRECOGNITION SOFTWARE PROVED TO BE FLAWED AND ITS COMMUNICATIONS ABILITY NONEXISTENT WITHOUT EXPENSIVE ADDONS THE NEWTON COULDN'T POSSIBLY LIVE UP TO THE HYPE APPLE PUT OUT ABOUT IT MR SEYBOLD SAYS CONSUMERS FELT BETRAYED THINGS LIKE THAT WILL SET THE WIRELESS MOVEMENT BACK EVERY TIME WILLIAM FREZZA DIRECTOR OF MARKETING AND BUSINESS DEVELOPMENT FOR ERICSSON GE MOBILE COMMUNICATIONS INC A JOINT VENTURE OF GE AND TELEFON AB LM ERICSSON OF SWEDEN SAYS MR SEYBOLD IS RIGHT ON TARGET WHAT HE'S SAYING IS THAT RIGHT NOW THE MARKET WE'RE AFTER IS NOT THE DEVICEINEVERYHOUSEHOLD MARKET MR FREZZA SAYS WE'RE AFTER THE WIRELESS ROAD WARRIOR THE BUSINESSPERSON WHO TRAVELS AND NEEDS TO STAY CONNECTED AND CAN'T LUG AROUND EIGHT SUITCASES FULL OF CABLES AND GEAR ANDY HAS HELPED DEFINE THAT MARKET OF COURSE NOT EVERYONE AGREES WITH MR SEYBOLD'S ANALYSES THAT MAY BE PARTLY BECAUSE OF HOW HE SOMETIMES PRESENTS THEM TIM BAJARIN A FRIEND AND FELLOW CONSULTANT WHO HAS WORKED ON WIRELESS CONSULTING PROJECTS WITH MR SEYBOLD SAYS SOME PEOPLE DON'T BUY THE MESSAGE BECAUSE THEY CAN'T STOMACH THE MESSENGER I HAVE SAT IN A ROOM WITH ANDY AND WATCHED HIM TELL A CEO POINTBLANK THAT IS THE STUPIDEST THING I HAVE EVER HEARD' MR BAJARIN RECOUNTS THAT'S ANDY'S STYLE BUT SOME PEOPLE REJECT THE MESSAGE WHEN IT'S PUT TO THEM THAT WAY OTHER CLASHES ARE MORE SUBSTANTIVE IN HIS NEWSLETTERS AND SPEECHES MR SEYBOLD FOR MONTHS HAS BLASTED MCCAW'S EFFORT TO ESTABLISH A CELLULAR NETWORK AROUND TECHNOLOGY KNOWN AS CELLULAR DIGITAL PACKET DATA OR CDPD THIS TECHNOLOGY IS MEANT TO OVERLAY EXISTING ANALOG CELLULAR PHONE NETWORKS ENABLING THEM TO TRANSMIT DIGITAL DATA OVER UNUSED RADIO CHANNELS ACCORDING TO MCCAW CDPD IS A MAJOR ADVANCE THAT ALLOWS INTEGRATED VOICE AND DATA TRANSMISSION OVER A SINGLE NETWORK PERMITTING CUSTOMERS TO USE ONE DEVICE FOR CALLING THEIR FRIENDS OR CALLING THEIR COMPUTERS MCCAW HAS POURED MORE THAN 300 MILLION INTO DEVELOPING IT PLANNED TO HAVE NEW YORK AND FOUR OTHER BIG CITIES UP AND RUNNING WITH CDPD TECHNOLOGY BY LAST MONTH AND HOPES TO ESTABLISH IT AS AN INDUSTRY STANDARD BUT MR SEYBOLD SAYS THE TECHNOLOGY IS SO COMPLICATED THAT IT IS BOUND TO RUN INTO SNAGS AND DELAYS IT'S MANY YEARS AWAY HE ARGUES MOREOVER HE SAYS MCCAW'S HYPE ABOUT CDPD IS FREEZING THE MARKET LEADING POTENTIAL CUSTOMERS AND EVEN SOFTWARE DEVELOPERS TO HOLD OFF PURCHASING EQUIPMENT OR COMMITTING TO OTHER ALREADYAVAILABLE TECHNOLOGIES WHILE MCCAW TALKS UP CDPD IF IT FLOPS HE SAYS THE BACKLASH WILL BE TREMENDOUS IT IS A MEASURE OF MR SEYBOLD'S WIRELESS CLOUT THAT CRAIG MCCAW MCCAW'S FOUNDER AND A WIRELESS TITAN HIMSELF HAS CALLED OR EMAILED MR SEYBOLD MANY TIMES TO DISCUSS HIS BROADSIDES AGAINST CDPD IN NOVEMBER MCCAW VICE PRESIDENT ROB MECHALEY INVITED MR SEYBOLD FOR A PRIVATE DEMONSTRATION OF CDPD MR SEYBOLD WAS DISINVITED WHEN HE INSISTED ON USING ELABORATE ELECTRONICS GEAR TO INVESTIGATE THE FIDELITY OF CDPD'S SIGNAL TRANSMISSION AND OTHER TECHNICAL MATTERS LATER THAT MONTH AT THE BIG COMDEX COMPUTER TRADE SHOW IN LAS VEGAS MR MECHALEY INVITED MR SEYBOLD INTO A PRIVATE TUTORIAL ON CDPD IT WAS A BRIEF MEETING MR SEYBOLD IMMEDIATELY BEGAN TRASHING MCCAW'S PROMOTION OF CDPD AND ACCUSED MCCAW OF AMONG OTHER THINGS STEALING THE TECHNOLOGY YOU'VE GOT TO DEAL WITH THE GUY BECAUSE LIKE IT OR NOT HE'S INFLUENTIAL IN THE INDUSTRY SAYS MCCAW'S MR RATLIFFE WHO ATTENDED THE MEETING BUT WE'RE NOT GOING TO PUT UP WITH CRAP LIKE THAT HE'S CONFRONTATIONAL AND AUTHORITARIAN AND HE'S GOT ALL THE SOCIAL SKILLS OF AN AX MURDERER TO WHICH MR SEYBOLD RESPONDS I HAVE NEVER MURDERED ANYONE WITH AN AX SOME OF THE MORE SUCCESSFUL PRODUCTS IN MOBILE COMPUTING AND WIRELESS BEAR MR SEYBOLD'S IMPRINT HEWLETTPACKARD INCORPORATED MANY OF HIS SUGGESTIONS FOR ITS 95LX PALMTOP PC INCLUDING FAX CAPABILITY AND RELATED FEATURES INTO ITS NEXT VERSION THE 100LX BOTH MODELS WHICH HAVE SMALL KEYBOARDS CAN BE LINKED TO EXTERNAL WIRELESS MODEMS AND ARE POPULAR WITH BUSINESSPEOPLE AND PROFESSIONALS EAGER FOR WIRELESS POWER THEN THERE'S THE NEWSLETTER MR SEYBOLD WON'T DISCLOSE SPECIFIC CIRCULATION FIGURES BUT SAYS THE MOBILECOMPUTING NEWSLETTER'S SUBSCRIPTIONS ROSE 400 IN THE FIRST 11 MONTHS OF 1993 AND ALREADY ECLIPSE THE SUBSCRIPTIONS OF HIS REVIVED GENERALCOMPUTING NEWSLETTER INDUSTRY OFFICIALS SAY HIS PRODUCT REVIEWS CAN MAKE OR BREAK COMPANIES AND PROVIDE INVESTORS WITH CLUES TO WINNERS AND LOSERS IN THE WIRELESS RACE HE WAS ONE OF THE EARLIEST ADVOCATES OF RADIOMAIL CORP'S FASTGROWING WIRELESS POST OFFICE WHICH ALLOWS USERS TO TAP IN TO VIRTUALLY ALL OF TODAY'S DISPARATE WIRELESS DATA NETWORKS AND LINK UP WITH WIRED NETWORKS SUCH AS MCI MAIL AND THE INTERNET HE ALSO WAS AN EARLY PREDICTOR OF INTERNATIONAL BUSINESS MACHINES CORP'S DECLINE WHICH WAS AT LEAST PARTLY ATTRIBUTABLE TO BIG BLUE'S BIG BLOWOFF OF THE IMPLICATIONS OF MOBILE AND WIRELESS TRENDS WHEN IBM STOCK WAS TRADING AT MORE THAN 100 A SHARE MR SEYBOLD TOLD THE PEOPLE AT ONE CONFERENCE THAT THEY SHOULD PUT A BUY ORDER IN FOR IBM AT 50 WHICH IS WHERE THE STOCK EVENTUALLY HEADED IBM IS NOW A BIG BELIEVER IN WIRELESS COMPUTING BECOMING THE FIRST MANUFACTURER TO OFFER A PORTABLE COMPUTER WITH A CDPD MODEM MR SEYBOLD'S LATEST PROJECT MAY TURN OUT TO BE HIS MOST IMPORTANT CONTRIBUTION YET TO WIRELESS HE CONCEIVED AND PULLED TOGETHER THE PORTABLE COMPUTER AND COMMUNICATIONS ASSOCIATION AN ORGANIZATION THAT INCLUDES ERICSSON GE INTEL LOTUS MICROSOFT CORP MOTOROLA AND A DOZEN OTHER BIG NAMES IN HIGH TECH MCCAW IS NOT A MEMBER ITS MISSION IS TO HASH OUT OPEN STANDARDS FOR WIRELESS COMPUTING THAT WILL ENABLE DIFFERENT MANUFACTURERS' PRODUCTS TO TALK TO ONE ANOTHER THAT'S CONSIDERED CRUCIAL TO THE DEVELOPMENT OF A WIRELESS WORLD AS PRESIDENT OF THE PCCA MR SEYBOLD STOWS HIS USUAL CONFRONTATIONAL BLUSTER HE SPENT MONTHS OF SHUTTLE DIPLOMACY CAJOLING THE ARCHRIVALS INTO COOPERATING ON THE PROJECT AT A RECENT MEETING AT A HOTEL NEAR THE SAN FRANCISCO AIRPORT AS A ROOMFUL OF TOP TECHNOLOGISTS NATTER ON ABOUT FCLASS PARAMETERS AND X28 VRES'S AND SUCH MR SEYBOLD PRODS AND POKES ASKING A FEW QUESTIONS SUGGESTING A FEW SOLUTIONS TRYING HE SAYS TO KEEP THE PROCESS FROM BOGGING DOWN IN TECHNOBABBLE DURING A PARTICULARLY INTENSE HALFHOUR EXCHANGE BETWEEN MOTOROLA AND MICROSOFT EXECUTIVES ABOUT DIALSTRING MODIFIERS A FIRE ALARM GOES OFF ONLY MR SEYBOLD SEEMS TO NOTICE BOUNDING INTO THE CORRIDOR TO DETERMINE THAT IT'S A FALSE ALARM AND TO GRAB A SMOKE WHATEVER COMES OF WIRELESS MR SEYBOLD SEEMS TO HAVE BECOME ONE OF ITS EARLIEST WINNERS HE HAS MADE HIS MARK SOMETHING THAT DEEP DOWN I FIND REALLY SATISFYING HE SAYS BEING A SEYBOLD MY FAMILY ISN'T AN EASY ACT TO FOLLOW HE HAS ALSO MADE SOME MONEY AND HE HAS EVEN FOUND LOVE HE MET HIS SECOND WIFE LINDA OVER HAM RADIO FIVE YEARS AGO FOR MANY MONTHS THEIRS WAS A WIRELESS ROMANCE I KNEW THE VOICE BEFORE I EVER MET THE MAN RECALLS LINDA A LIFELONG HAMRADIO BUFF IT WAS GRUFF BUT I KIND OF LIKED IT MR MCCOY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9402110163 940211 MONEYMARKET ASSETS CONTINUED TO DECLINE IN MOST RECENT WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS CONTINUED TO DECLINE THIS WEEK FALLING 439 BILLION TO 58931 BILLION FROM A REVISED 59370 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 652 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 204 BILLION TO 40207 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 405 TAXABLE MONEYMARKET FUNDS INCREASED BY 134 BILLION TO 31134 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS INCREASED BY 7007 MILLION TO 9074 BILLION ASSETS OF THE 282 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 643 BILLION TO 18723 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 228 TAXABLE MONEYMARKET FUNDS DROPPED BY 639 BILLION TO 16445 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL BY 453 MILLION TO 2278 BILLION 9402110162 940211 ONTARIO ACTION ON LOTTERY OPENS WAY FOR NBA TEAM TORONTO THE PROVINCE OF ONTARIO AGREED TO DROP BASKETBALL FROM ITS SPORTSBETTING LOTTERY CLEARING THE WAY FOR A NATIONAL BASKETBALL ASSOCIATION FRANCHISE IN TORONTO TO MAKE UP FOR THE PROVINCE'S LOST GAMBLING REVENUE THE NBA AND THE NEW FRANCHISE AGREED TO MAKE VARIOUS CONTRIBUTIONS TO CHARITABLE CAUSES SIMILAR TO THOSE THAT GOT FUNDS FROM THE LOTTERY PLANS FOR A PROFESSIONAL BASKETBALL TEAM IN TORONTO HAD BEEN ENDANGERED BECAUSE THE NBA WON'T PERMIT FRANCHISES IN AREAS WHERE BETTING ON BASKETBALL IS LEGAL AND THE PROVINCIAL GOVERNMENT DIDN'T WANT TO GIVE UP ITS SPORTSBETTING REVENUE THE NEW TEAM WHICH HASN'T YET BEEN NAMED IS TO BEGIN PLAYING IN 1995 BASKETBALL WILL BE DROPPED FROM THE PROVINCE'S PROLINE LOTTERY ON OCT 1 1995 ACCORDING TO THE AGREEMENT THE TEAM WILL CONTRIBUTE FIVE MILLION CANADIAN DOLLARS US37 MILLION OVER THREE YEARS TO A NEW CHARITABLE FOUNDATION AND RAISE C1 MILLION ANNUALLY THEREAFTER THROUGH SUCH THINGS AS EXHIBITION GAMES THE NBA WILL CONTRIBUTE C15 MILLION TO ONTARIO HOSPITALS AND PROVIDE C2 MILLION IN TV TIME AND AD SPACE OVER FOUR YEARS TO PROMOTE TOURISM IN ONTARIO 9402110161 940211 WHO'S NEWS HOME HOLDINGS INC HOME HOLDINGS INC NEW YORK JOHN M TETRO 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS INSURANCE HOLDING COMPANY THIS IS AN ADDITIONAL POSITION FOR MR TETRO WHO IS ALSO EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE HOME INSURANCE CO UNIT MR TETRO SUCCEEDS JAN EVELAND WHO WILL BE RELOCATING TO EUROPE TO TAKE A JOB AT SWEDEN'S TRYGGHANSA SPP WHICH OWNS ABOUT 64 OF HOME HOLDINGS SEPARATELY MARY A TAYLOR 45 WAS NAMED SENIOR VICE PRESIDENT CORPORATE COMMUNICATIONS AT HOME HOLDINGS A NEW POSITION SHE WILL CONTINUE TO HOLD THAT SAME TITLE AT THE UNIT ALSO LARRY WALTERS WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT INVESTOR RELATIONS MR WALTERS 45 WAS PREVIOUSLY A VICE PRESIDENT AT AMERICAN INTERNATIONAL GROUP INC IN NEW YORK 9402110160 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD DECISIONS DECISIONS READY TO BUY A CELLULAR PHONE HERE ARE SOME THINGS YOU OUGHT TO KNOW BY JOHN J KELLER IF IT HASN'T ALREADY HAPPENED IT PROBABLY WILL YOU'RE GOING TO HAVE TO BUY ONE OF THESE THINGS BUT WHAT DO YOU LOOK FOR AND WHAT SHOULD YOU AVOID HERE'S A GUIDE TO BUYING A CELLULAR PHONE FIRST THINGS FIRST CELLULAR PHONES COME IN THREE BASIC STYLES MOBILE PERMANENT INCAR MODELS WITH HIGHPOWERED THREEWATT TRANSMITTERS TRANSPORTABLE PHONES THAT OFFER SIMILAR POWER BUT CAN BE CARRIED OUTSIDE THE CAR WITH A BATTERY PACK ABOUT THE SIZE AND WEIGHT OF A LARGE DICTIONARY AND TINY LOWERPOWERED ABOUT A HALFWATT POCKETSIZE MODELS THE MOST POPULAR TYPE OF CELLULAR PHONE SOLD TODAY BUT THE LINES AREN'T RIGID MOST POCKET PHONES FOR INSTANCE CAN BE FITTED WITH A BRACKET AND HOOKED INTO THE CONVENTIONAL CARPHONE TRANSCEIVER THAT GIVES A USER A MOREPOWERFUL PHONE WHILE DRIVING AND KEEPS THE POCKET PHONE'S BATTERY FROM RUNNING DOWN BATTERIES INCAR PHONES USE A CAR'S ALTERNATOR AND BATTERY FOR POWER TRANSPORTABLE PHONES WHEN TAKEN AWAY FROM THE CAR USE A POWERFUL BATTERY PACK BUT BECAUSE A POCKET PHONE CONTAINS ITS OWN TRANSCEIVER IN THE HANDSET IT REQUIRES TINY BATTERIES NICKEL CADMIUM IN OLDER MODELS AND SMALLER MOREPOWERFUL NICKEL METAL HYDRIDE BATTERIES IN THE NEWER PHONES WHAT'S IT FOR NOW THAT YOU KNOW WHAT KINDS OF PHONES ARE AVAILABLE YOU HAVE TO ASK YOURSELF WHY DO YOU WANT ONE ANYWAY DO YOU HAVE A LONG DRIVE TO AND FROM WORK BUT SPEND MOST OF THE DAY IN AN OFFICE IF SO YOU MAY WANT A PERMANENT PHONE INSTALLED IN YOUR CAR MOST NEW USERS HOWEVER ARE USING THEIR PHONES AS A CONVENIENT COMMUNICATOR A PAYPHONE SUBSTITUTE WHEN YOU'RE IN A MALL OR ON A STREET CORNER AND YOU NEED TO CALL HOME OR WORK QUICKLY A SMALL POCKET PHONE IS MORE THAN UP TO THE JOB THE DECISION ALSO DEPENDS ON WHERE YOU LIVE AND WORK FOR THOSE IN RURAL AREAS WHERE TRANSMISSION COVERAGE ISN'T VERY GOOD A POWERFUL TRANSPORTABLE PHONE MAY BE NECESSARY IT MAY NOT FIT IN YOUR POCKET BUT THE PHONE'S BATTERY WILL HAVE THE POWER TO REACH THE NEAREST CELLULAR TOWER AS WELL AS TO OPERATE OVER EXTENDED PERIODS TALK TIME PORTABLE PHONES ARE ONLY AS GOOD AS THEIR TALK TIME THAT IS HOW LONG YOU CAN ACTUALLY TALK ON THE PHONE BEFORE THE BATTERY DIES BUYERS ALSO SHOULD LOOK CAREFULLY AT STANDBY TIME WHICH IS HOW LONG THE PHONE CAN BE LEFT ON TO ACCEPT CALLS BEFORE NEEDING A RECHARGE TODAY THE AVERAGE TALK TIME IS ABOUT TWO HOURS ON THE BETTER PHONES WITH ABOUT 18 HOURS OF STANDBY TIME SOME EXTENDEDLIFE BATTERIES OFFER UP TO 160 MINUTES OF TALK TIME AND COMING SOON JAPANESE MODELS WITH LITHIUMION BATTERIES THAT OFFER 15 MORE TALK TIME THAN TODAY'S MOSTPOWERFUL POCKET MODELS GIMMICKS UNLIKE THE BRICKSIZE PHONES SEEN IN CELLULAR'S EARLY YEARS TODAY'S MODELS ARE SLEEK AND COME WITH A VAST ARRAY OF FEATURES MOST PHONES HAVE LITTLE CALCULATORTYPE SCREENS TO SHOW THE NUMBER THAT IS BEING CALLED THE SCREEN WILL ALSO WARN ABOUT A LOW BATTERY BEFORE YOUR CALL CONKS OUT THE BETTER CAR PHONES ALSO PERMIT HANDSFREE OPERATION THROUGH VOICEACTIVATED DIALING SAY MOM AND IT DIALS HER NUMBER AND A SPEAKERPHONE DIGITAL A SMALL NUMBER OF NEW PHONES OPERATE ON THE NEW DIGITAL NETWORKS WHICH SOME CARRIERS HAVE BEGUN INSTALLING TO REPLACE THEIR OLDER ANALOG NETWORKS THE NEW PHONES WORK IN BOTH MODES AND ARE THEREFORE KNOWN AS DUALMODE PHONES IN THE LONG RUN THE NEW DIGITAL NETWORKS WILL HANDLE A GREATER NUMBER OF CALLS MAKING IT MORE LIKELY THAT A CALL WILL GET THROUGH ON THE FIRST TRY DIGITAL WILL ALSO GIVE USERS A CLEARER SOUND AND GREATER PRIVACY SINCE DIGITAL PULSES ARE HARD TO TAP BUT THE NEW DIGITAL NETWORKS ARE EXPERIENCING SOME STARTUP BUGS INCLUDING SOME NOISE PROBLEMS SO TO ENCOURAGE USERS TO GO DIGITAL SOME CARRIERS SUCH AS MCCAW CELLULAR COMMUNICATIONS INC OF KIRKLAND WASH ARE OFFERING DISCOUNTS AS DEEP AS 20 ON PERMINUTE CHARGES FOR DIGITAL CALLS PICKING A CARRIER THIS IS PRETTY SIMPLE EACH MARKET HAS AN A CARRIER AND A B CARRIER THE A CARRIER IS AN INDEPENDENTLY OWNED NETWORK SUCH AS THE CELLULAR ONE NETWORK RUN BY MCCAW IN THE NEW YORK CITY AREA THE B CARRIER IS OWNED BY THE SAME COMPANY THAT OFFERS REGULAR LOCAL PHONE SERVICE IN THAT AREA YOUR DEALER WILL ELECTRONICALLY PROGRAM YOUR PHONE TO OPERATE ON THE NETWORK WITH WHICH IT IS AFFILIATED HOW DO YOU PICK BETWEEN THE TWO THE SAME WAY YOU WOULD BETWEEN COMPETING LONGDISTANCE CARRIERS COMPARE PRICE AND QUALITY AND THEN GUESS COST REMEMBER IT'S A BUYER'S MARKET JUST ABOUT EVERY CONSUMERELECTRONICS DEALER IS OFFERING FAT DISCOUNTS ON CELLULAR PHONES AND THANKS TO CARRIER SUBSIDIES TO SPUR USAGE POCKET PHONES NOW GO FOR BETWEEN 50 AND 800 OCCASIONALLY A CARRIER WILL OFFER FREE PHONES IN EXCHANGE FOR A LONGTERM SERVICE CONTRACT SAY FOR THREE MONTHS TO A YEAR IF YOU STOP SERVICE EARLY YOU PAY A PENALTY CALIFORNIA IS THE ONLY STATE THAT DOESN'T ALLOW THIS BUNDLING EVEN SO YOUR PHONE BILL WILL GET A LOT FATTER WITH A CELLULAR PHONE THE PRICE CUTS HAWKED IN DAILY NEWSPAPER ADS AND ON TELEVISION FOR EXAMPLE DON'T INCLUDE INSTALLATION CHARGES FOR INCAR PHONES THOSE CAN RUN AN EXTRA 200 TO 300 MANY ADS ALSO DON'T MENTION PLENTY OF OTHER FEES CARRIERS CHARGE ONETIME SERVICEACTIVATION FEES THAT CAN RUN MORE THAN 100 IF YOU ALREADY OWN A PHONE AND WANT TO ORDER SERVICE FOR MOST SALES THAT INCLUDE PHONES HOWEVER CARRIERS USUALLY WAIVE THIS CHARGE YOU ALSO WILL HAVE TO COUGH UP A MONTHLY PAYMENT OF UP TO 30 FOR NETWORK ACCESS SO EVEN IF YOU DON'T USE YOUR PHONE YOU WILL STILL PAY ABOUT 360 A YEAR THEN THERE ARE THE CHARGES FOR ACTUALLY TALKING ON THE PHONE THE PRICE CHANGES DEPENDING UPON THE TIME OF DAY CALLS DURING PEAK HOURS CAN COST AS MUCH AS 80 CENTS PER MINUTE EXCLUDING A SEPARATE EXTRA CHARGE IF THE CALL IS LONGDISTANCE OFFPEAK USAGE COSTS AS LITTLE AS 10 CENTS A MINUTE SOMETIMES A CARRIER WILL THROW IN FREE CALLING DURING CERTAIN PERIODS AND REMEMBER IN ALMOST ALL MARKETS YOU PAY FOR CALLS YOU RECEIVE AS WELL AS THE ONES YOU MAKE THE UPSHOT CELLULARPHONE CUSTOMERS SPEND ON AVERAGE BETWEEN 60 AND 70 A MONTH ACCORDING TO VARIOUS ANALYSTS' ESTIMATES THIS INCLUDES THE MONTHLY ACCESS FEE AS WELL AS LONGDISTANCE CHARGES WHICH ARE HANDLED BY REGULAR CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO LIKE REGULAR PHONE SERVICE YOU DESIGNATE YOUR LONGDISTANCE CARRIER WHEN YOU SIGN UP FOR CELLULAR SERVICE MANY USERS SAY THESE BILLS ARE A SMALL PRICE TO PAY FOR THE CONVENIENCE FOR OTHERS THOUGH THEY ONLY MAKE THE PAY PHONE ON THE CORNER LOOK LIKE A BARGAIN AFTER ALL MR KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110158 940211 TECHNOLOGY BRODERBUND'S STOCK SURGED BEFORE DEAL WITH ELECTRONIC ARTS WAS ANNOUNCED BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SHARES OF BRODERBUND SOFTWARE INC ROSE 22 IN THE THREE DAYS OF TRADING PRECEDING ITS ANNOUNCED ACQUISITION BY ELECTRONIC ARTS INC LEADING SOME ANALYSTS TO ASSERT THAT INSIDE INFORMATION ABOUT THE DEAL HAD LEAKED OUT ELECTRONIC ARTS A SAN MATEO CALIF MAKER OF COMPUTER AND VIDEO GAMES DISCLOSED ITS AGREEMENT TO BUY BRODERBUND FOR 154 MILLION SHARES OF ITS STOCK AFTER CLOSE OF TRADING WEDNESDAY THAT DAY BRODERBUND CLOSED AT 4125 IN NATIONAL STOCK MARKET TRADING UP 375 FROM THE PREVIOUS DAY AND UP 750 FROM FRIDAY'S CLOSE WERTHEIM SCHRODER & CO ANALYST ALFRED TOBIA JR SAID WEDNESDAY'S RISE IN BRODERBUND STOCK MAY HAVE FORCED THE COMPANY AND ELECTRONIC ARTS TO ANNOUNCE THE MERGER SOONER THAN PLANNED INVESTORS OBVIOUSLY GOT WIND OF WHAT WAS GOING ON HE SAID ANOTHER ANALYST WHO REQUESTED ANONYMITY ALSO SAID BUYING ON WEDNESDAY WAS BASED ON A RUMOR OF A PENDING ACQUISITION OF BRODERBUND THE STOCK DEAL WAS VALUED AT 400 MILLION OR 4167 A SHARE TO BRODERBUND SHAREHOLDERS ON THE BASIS OF WEDNESDAY'S CLOSE YESTERDAY ELECTRONIC ARTS' STOCK JUMPED 350 TO 29 GIVING THE DEAL A VALUE OF 4656 A SHARE TO BRODERBUND HOLDERS BRODERBUND CLOSED AT 45875 UP 4625 IN NASDAQ STOCK MARKET TRADING BRODERBUND SAID IT DIDN'T KNOW OF ANY REASON WHY ITS STOCK ROSE BEFORE THE ANNOUNCEMENT ALTHOUGH A SPOKESWOMAN SAID ANALYSTS RECENTLY HAD MADE SOME FAVORABLE COMMENTS ABOUT THE COMPANY HAMBRECHT & QUIST PUT OUT A REPORT ON THE EDUCATIONAL SOFTWARE INDUSTRY WEDNESDAY THAT MIGHT HAVE HAD SOME EFFECT ON BRODERBUND'S STOCK PRICE THE REPORT WAS GENERALLY POSITIVE BUT VOICED SOME CAUTION INCLUDING CONCERN ABOUT INCREASED COMPETITION SAID ANALYST TODD BAKAR IN CONJUNCTION WITH THAT REPORT HAMBRECHT & QUIST UPGRADED ITS RECOMMENDATION ON BRODERBUND'S STOCK TO HOLD FROM UNDERPERFORM LAST THURSDAY ROBERTSON STEPHENS & CO REITERATED A BUY RECOMMENDATION ON BRODERBUND STOCK A SPOKESMAN FOR THE SECURITIES AND EXCHANGE COMMISSION IN WASHINGTON WOULDN'T COMMENT ON WHETHER THE AGENCY WILL LOOK INTO REASONS FOR THE STOCK'S RISE LEE ISGUR OF VOLPE WELTY & CO SAID A RUMOR THAT BRODERBUND WILL MAKE PRODUCTS USING DR SEUSS CHARACTERS COULD HAVE BOOSTED THE STOCK PRICE A BRODERBUND SPOKESWOMAN SAID THE COMPANY HASN'T MADE ANY SUCH ANNOUNCEMENT THE DEAL BETWEEN ELECTRONIC ARTS AND BRODERBUND WOULD CREATE ONE OF THE LARGEST CONSUMERSOFTWARE VENDORS SERVING THE HOMEEDUCATION AND ENTERTAINMENT MARKETS THE COMBINED COMPANY WILL COMPETE AGAINST REDMOND WASHBASED MICROSOFT CORP'S HOMESOFTWARE UNIT AND ACCLAIM ENTERTAINMENT INC OYSTER BAY NY THE PROPOSED DEAL GIVES ELECTRONIC ARTS A STRONG PRESENCE IN THE EDUCATION MARKET WHERE IT HAS STRUGGLED AND OFFERS BRODERBUND THE CHANCE TO EXPAND THROUGH ELECTRONIC ARTS' STRONG DISTRIBUTION NETWORK WE INTEND TO BE A WORLDWIDE SOFTWARE COMPANY SAID WILLIAM MCDONAGH BRODERBUND'S CHIEF FINANCIAL OFFICER THE BATTLE IS GOING TO BE FOR SHELF SPACE SAID ANDREW BROSSEAU OF COWEN & CO BETTY LYTER OF MONTGOMERY SECURITIES SAID SHE EXPECTS COMPANIES WITH SOLID DISTRIBUTION SUCH AS ELECTRONIC ARTS ACCLAIM AND DAVIDSON & ASSOCIATES INC OF TORRANCE CALIF TO CONSIDER ACQUIRING SUCH COMPANIES AS SIERRA ONLINE INC BELLEVUE WASH WHICH ONCE ALMOST MERGED WITH BRODERBUND SOFTWARE TOOLWORKS INC NOVATO CALIF AND LEARNING CO FREMONT CALIF DAVID READERMAN OF LEHMAN BROTHERS ESTIMATES THE COMBINED COMPANIES WILL POST EARNINGS OF 93 CENTS A SHARE ON REVENUE OF 518 MILLION FOR THE FISCAL YEAR ENDING IN MARCH FOR THE 1995 FISCAL YEAR HE ESTIMATES EARNINGS OF 125 A SHARE ON REVENUE OF 677 MILLION MR READERMAN DOUBTED MICROSOFT WOULD BID FOR BRODERBUND BECAUSE THEY ALREADY HAVE MORE PEOPLE IN HOME SOFTWARE RESEARCH AND DEVELOPMENT THAN IN THE ENTIRE COMPANY OF BRODERBUND WITH FEW OTHER PLAYERS IN THE EDUCATIONAL AND ENTERTAINMENTSOFTWARE MARKETS BIG ENOUGH TO ACQUIRE BRODERBUND OTHER OFFERS WOULD HAVE TO COME FROM OUTSIDE THE SOFTWARE INDUSTRY HE SAID ANALYSTS MENTIONED WALT DISNEY CO PARAMOUNT COMMUNICATIONS AND ADVANCE PUBLICATIONS INC'S RANDOM HOUSE WITH WHICH BRODERBUND HAS AN AGREEMENT FOR A VENTURE IN CHILDRENS' SOFTWARE AS POSSIBILITIES A BRODERBUND SPOKESWOMAN SAID NO OTHER SUITORS ARE CURRENTLY COURTING THE COMPANY 9402110157 940211 ADAC BUYS PORTFOLIO OF PATENTS MILPITAS CALIF ADAC LABORATORIES SAID IT ACQUIRED THE NUCLEARMEDICINE PATENT PORTFOLIO OF PHILIPS MEDICAL SYSTEMS A UNIT OF PHILIPS ELECTRONICS NV TERMS WEREN'T DISCLOSED THE COMPANY SAID THE PORTFOLIO CONSISTS OF 13 US PATENTS AND 56 FOREIGN PATENTS AND PATENT APPLICATIONS ADAC SAID PHILIPS'S DIVESTMENT OF ITS NUCLEARMEDICINE PORTFOLIO IS CONSISTENT WITH ITS LONGTERM STRATEGIC PLAN TO STREAMLINE ITS PRODUCT OFFERINGS 9402110156 940211 PINNACLE MICRO PUTS FOURTHPERIOD PROFIT AT 1012 CENTS A SHARE IRVINE CALIF PINNACLE MICRO INC EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF BETWEEN 10 CENTS AND 12 CENTS A SHARE ON SALES OF ABOUT 11 MILLION BRADLEY T NIELSON VICE PRESIDENT FINANCE SAID MR NIELSON SAID THE COMPANY LIKELY WILL HAVE FINANCIAL RESULTS OUT NEXT WEEK HE WAS INTERVIEWED WITH WILLIAM F BLUM PRESIDENT AND CHIEF EXECUTIVE OFFICER AND SCOTT A BLUM EXECUTIVE VICE PRESIDENT MR NIELSON ADDED THAT PINNACLE MICRO A MAKER OF OPTICAL STORAGE DRIVES FOR COMPUTERS IS ON TARGET AS MUCH AS I CAN PREDICT AT THIS POINT WITH WHAT HE SAID ARE ANALYSTS' ESTIMATES THAT FIRSTQUARTER NET INCOME WILL TOTAL ABOUT 10 CENTS A SHARE THE 1993 FOURTHQUARTER RESULTS WERE LIKEWISE IN LINE WITH ANALYSTS' EXPECTATIONS FOR THE COMPANY MR NIELSON SAID MR NIELSON SAID PROFITS CURRENTLY ARE SOMEWHAT CONSTRAINED BY A LINEUP OF NEW PRODUCTS THAT THE COMPANY IS BRINGING TO MARKET INCLUDED IN THAT LINEUP IS AN AMBITIOUS NEW OPTICALDISK STORAGE PRODUCT DESIGNED TO CHALLENGE THE SPEED AND EFFICIENCY OF CURRENT MAGNETICDISK STORAGE DEVICES BUT WITH FAR MORE CAPACITY SCOTT BLUM SAID ALSO THE MEN SAID A PRODUCT CHANGEOVER HAS GONE WELL FOR THE COMPANY'S NEW SIERRA 13GIGABYTE DRIVES WHICH SUPPLANTED PINNACLE MICRO'S OLDER PMO650 WITH HALF THE CAPACITY STARTING LATE THIS FALL THEY SAID UNIT SHIPMENTS ALREADY ARE RIVALING THOSE OF THE EARLIER MODEL WHICH HAS BEEN PHASED OUT A GIGABYTE IS ONE BILLION BYTES THE ESTIMATE OF FOURTHQUARTER NET INCOME OF 10 TO 12 CENTS A SHARE COMPARES WITH NET INCOME OF 547000 OR 14 CENTS A SHARE ON SALES OF 78 MILLION A YEAR EARLIER WHEN PINNACLE MICRO WAS CLOSELY HELD THE COMPANY'S STOCK BEGAN TRADING PUBLICLY ON JULY 1 1993 WITH AN INITIAL PUBLIC OFFERING OF 16 MILLION COMMON SHARES THE WEIGHTED AVERAGE SHARES OUTSTANDING IN THE 1993 FOURTH QUARTER TOTALED 52 MILLION COMPARED WITH 39 MILLION A YEAR EARLIER PINNACLE MICRO EXPECTS TO ABOUT DOUBLE RESEARCH AND DEVELOPMENT OUTLAYS THIS YEAR COMPARED WITH 1993 LEVELS MR NIELSON SAID 9402110155 940211 MACY SEEKS EXTENSION TO OFFER OWN PLAN FOR REORGANIZATION NEW YORK RH MACY & CO SAYING IT HAS MADE SIGNIFICANT PROGRESS WHILE OPERATING UNDER FEDERAL BANKRUPTCY PROTECTION AGAINST CREDITORS ASKED THE BANKRUPTCY COURT FOR SIX MORE MONTHS TO COME UP WITH ITS OWN CHAPTER 11 REORGANIZATION PLAN THE DEPARTMENTSTORE RETAILER OPERATING UNDER BANKRUPTCYCOURT PROTECTION SINCE 1992 SAID IT PLANS TO PURSUE THE DEVELOPMENT OF A REORGANIZATION PLAN TO PRESENT TO CREDITORS AND THE COURT BEFORE SEPT 15 ACCORDING TO THE MOTION FILED WITH THE US BANKRUPTCY COURT IN NEW YORK THE FILING SIGNALS MACY IS CLOSE TO FINALLY EMERGING FROM BANKRUPTCY PROCEEDINGS AS A LEANER ORGANIZATION UNDER THE EXCLUSIVITY PERIOD THAT IS SCHEDULED TO END MARCH 15 ONLY MACY CAN OFFER A PLAN OF REORGANIZATION AFTER THIS PERIOD ITS CREDITORS AND OTHERS INCLUDING UNWANTED SUITOR FEDERATED DEPARTMENT STORES INC COULD PROPOSE REORGANIZATION PLANS TO THE COURT JUDGE BURTON LIFLAND WHO IS SCHEDULED TO CONSIDER MACY'S MOTION AT A HEARING FEB 22 IS EXPECTED TO APPROVE THE MOVE MYRON E ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE EXTENSION IS NECESSARY SO MACY'S CAN CONTINUE NEGOTIATIONS WITH CREDITOR GROUPS AND WORK OUT A CONSENSUAL PLAN OF REORGANIZATION THAT PROVIDES A FAIR RECOVERY FOR ALL OF OUR CREDITORS MACY NOTED IN THE FILING THAT WHILE IT NARROWED THE COMPANY'S NET LOSSES FOR THE FISCAL YEAR ENDED JULY 31 1993 TO 544 MILLION FROM 125 BILLION THE YEAR BEFORE THERE REMAINS MUCH TO BE DONE INCLUDING NEGOTIATING THE REORGANIZATION PLAN WITH EIGHT MAJOR CREDITOR GROUPS CURRENTLY MACY OWES ITS CREDITORS A TOTAL OF ABOUT 6 BILLION MACY WHICH OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES IS CURRENTLY FENDING OFF FEDERATED WHICH LAST MONTH ACQUIRED A CHUNK OF MACY SECURED DEBT AND SAID IT WANTS TO MERGE WITH MACY MACY SAID THAT WITHOUT AN EXTENDED EXCLUSIVITY PERIOD THE POTENTIAL FOR THE PROPOSAL OF COMPETING PLANS MIGHT WELL LEAD TO UNNECESSARY ADVERSARIAL CONFRONTATIONS THAT MIGHT CAUSE A DETERIORATION IN THE VALUE OF THE ASSETS AND BUSINESS OF MACY'S 9402110154 940211 INTERNATIONAL ERICSSON PRETAX PROFIT ROSE IN FOURTH QUARTER SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM TELEFON AB LM ERICSSON REPORTED BETTER THAN EXPECTED FOURTHQUARTER PRETAX PROFIT BUT ONCE AGAIN SAW ITS STOCK PLUNGE IN INTERNATIONAL MARKETS IN TRADING IN STOCKHOLM ERICSSON'S B SHARES FELL FIVE KRONOR 62 CENTS TO 356 KRONOR IN THE US ERICSSON'S AMERICAN DEPOSITARY RECEIPTS CLOSED AT 42375 DOWN 275 IN NASDAQ STOCK MARKET TRADING IN NOVEMBER THE SWEDISH TELECOMMUNICATIONS CONCERN REPORTED A NINEFOLD SURGE IN THIRDQUARTER PRETAX PROFIT BUT US INVESTORS RESPONDED BY STRIPPING 14 OFF THE STOCK PRICE IN TURBULENT TRADING ONCE AGAIN THE CULPRIT SEEMS TO BE BLOATED PROFIT PROJECTIONS AMONG ANALYSTS THIS WAS A GOOD RESULT FOR ERICSSON COMPARED TO RIVALS SUCH AS SIEMENS AG AND ALCATEL NV ONE LONDON TELECOMMUNICATIONS ANALYST MUSED BUT IT'S ALL ABOUT INFLATED EXPECTATIONS ALCATEL IS A UNIT OF ALCATELALSTHOM SA IN THE FOURTH QUARTER PRETAX PROFIT ROSE 5 TO 125 BILLION KRONOR FROM 118 BILLION KRONOR A YEAR EARLIER THAT INCREASE WAS ACHIEVED DESPITE AN UNUSUALLY STRONG YEAREARLIER PERIOD AND A 305 MILLION KRONA WRITEOFF OF GOODWILL STEMMING FROM AN ACQUISITION ERICSSON OFFICIALS DECLINED TO IDENTIFY EFFECTS OF THE SHARP DEPRECIATION OF SWEDISH CURRENCY SINCE NOVEMBER 1992 HADN'T PREVIOUSLY AFFECTED THE COMPANY'S PROFIT BUT EXPIRATION OF MOST REMAINING HEDGING CONTRACTS ADDED AN ESTIMATED 200 MILLION KRONOR IN CURRENCY GAINS TO THE LATEST PERIOD'S PROFIT OFFICIALS SAID FULLYEAR PRETAX PROFIT MORE THAN DOUBLED TO 31 BILLION KRONOR FROM 131 BILLION THE PREVIOUS YEAR SQUARELY IN LINE WITH THE COMPANY'S FORECAST IN A GUARDED PREDICTION FOR THE CURRENT YEAR ERICSSON CHIEF EXECUTIVE LARS RAMQVIST SAID EARNINGS ARE EXPECTED TO INCREASE BUT STRESSING THAT THE FOURTH QUARTER WAS AS USUAL SEASONALLY STRONG MR RAMQVIST WARNED ANALYSTS NOT TO SIMPLY MULTIPLY THIS LATEST QUARTER BY FOUR AS AN ESTIMATE OF 1994 PROFIT THAT COMMENT SUGGESTS 1994 PRETAX PROFIT OF ABOUT 45 BILLION KRONOR ANALYSTS SAID ERICSSON SAID SALES CLIMBED 21 IN THE FOURTH QUARTER TO 2049 BILLION KRONOR AND 34 FOR THE FULL YEAR TO 629 BILLION KRONOR ORDERS INCREASED 17 TO 1839 BILLION KRONOR DURING THE FOURTH QUARTER AND 27 FOR THE FULL YEAR TO 676 BILLION KRONOR CURRENCY FLUCTUATIONS ACCOUNTED FOR ABOUT 20 PERCENTAGE POINTS OF THE SALES GAIN THE COMPANY SAID MR RAMQVIST BOASTED THAT ERICSSON ENTERED 1994 WITH THE BIGGESTORDER BACKLOG IN ITS HISTORY ABOUT 45 BILLION KRONOR 9402110153 940211 MARKETING BRIEF NOTED WHO'S NEWS MERRILL BROWN 41 SENIOR VICE PRESIDENT CORPORATE AND PROGRAM DEVELOPMENT FOR COURTROOM TELEVISION NETWORK WAS NAMED PRESIDENT OF THE INFORMATIONSERVICES DIVISION OF KAGAN WORLD MEDIA A UNIT OF PAUL KAGAN ASSOCIATES INC WHICH GATHERS MEDIAINDUSTRY ECONOMIC AND FINANCIAL DATA 9402110152 940211 CALVIN KLEIN INC PLANS TO SELL JEANS BUSINESS TO RIO SPORTSWEAR NEW YORK CALVIN KLEIN INC SIGNED A LETTER OF INTENT TO SELL ITS JEANS BUSINESS TO RIO SPORTSWEAR INC IN A TRANSACTION VALUED AT MORE THAN 35 MILLION THE MOVE COMES JUST WEEKS AFTER CALVIN KLEIN STRUCK A SIMILAR AGREEMENT TO SELL ITS UNDERWEAR BUSINESS TO WARNACO GROUP INC FOR 64 MILLION UNDER THE AGREEMENT RIO A NEW YORK MAKER OF JEANS AND OTHER APPAREL WILL PURCHASE CALVIN KLEIN'S MENS AND WOMENS JEANS DIVISIONS AND THE COMPANY'S DOMESTIC PLANTS RIO A UNIT OF OSHKOSH B'GOSH INC IN OSHKOSH WIS WILL HAVE A LICENSE TO MAKE THE JEANS AND PAY ONGOING ROYALTIES TO CALVIN KLEIN WHICH WILL CONTINUE TO CONTROL ADVERTISING AND DESIGNS OF THE JEANS THE COMPANIES HAVE ALSO AGREED TO JOINTLY DEVELOP AND LAUNCH A CHILDREN'S JEANS BUSINESS CALVIN KLEIN PURCHASED ITS JEANS BUSINESS IN 1983 FROM PURITAN FASHIONS INC FOR 658 MILLION THE JEANS BECAME MR KLEIN'S SIGNATURE CATAPULTING THE DESIGNER INTO THE FOREFRONT OF AMERICAN FASHION BUT THE PURITAN PURCHASE ALSO BURDENED THE COMPANY WITH JUNK BOND DEBT FOR SEVERAL YEARS WITH THE SALE OF ITS JEANS BUSINESS CALVIN KLEIN IS LEFT MANUFACTURING PRIMARILY A WOMEN'S COUTURE COLLECTION AND CK SECONDARY WOMEN'S AND MEN'S COLLECTIONS FRAGRANCE LEATHER GOODS AND OTHER PRODUCTS ARE ALREADY SOLD UNDER LICENSE CALVIN KLEIN OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE ANNOUNCEMENT WHICH WAS MADE BY RIO MR KLEIN HAS BECOME A SIX PERCENTER SAID ALAN MILLSTEIN A NEW YORK FASHION INDUSTRY CONSULTANT REFERRING TO THE TYPICAL PERCENTAGE OF SALES THAT COMPANIES RECEIVE WHEN THEY LICENSE PRODUCTS BY SELLING THE JEANS BUSINESS HE BUYS PEACE OF MIND AND HE CAN CONCENTRATE ON WHAT HE DOES BEST ADVERTISING AND SELFPROMOTION 9402110151 940211 CAR AFFORDABILITY ROSE IN 1993 BANK STUDY SAYS DETROIT LAST YEAR NEW CARS WERE THE MOST AFFORDABLE THEY'VE BEEN IN SIX YEARS ACCORDING TO A COMERICA BANK STUDY THE AVERAGE AMERICAN FAMILY NEEDED 30 WEEKS OF WORK IN THE FOURTH QUARTER OF 1993 EARNING 21469 TO AFFORD A NEW CAR ACCORDING TO THE BANK'S AFFORDABILITY INDEX WHICH INCLUDES THE AVERAGE PRICE OF CARS LENDING RATES AND MEDIAN FAMILY INCOME ESTIMATED AT 37232 IN THE FOURTH QUARTER THAT FOURTHQUARTER RATE WAS A DROP FROM 302 WEEKS IN THE THIRD QUARTER AND BROUGHT THE AVERAGE FOR 1993 TO 301 WEEKS THE LOWEST SINCE 1987 WHEN IT TOOK ONLY 29 WEEKS OF WORK TO AFFORD A CAR CARS BECAME MORE AFFORDABLE IN THE FOURTH QUARTER THAN IN THE THIRD BECAUSE OF A CONTINUING DROP IN INTEREST RATES AND A 168 DROP IN THE AVERAGE PURCHASE PRICE OF NEW VEHICLES SAID DAVID L LITTMANN COMERICA'S SENIOR ECONOMIST THE INDEX DOESN'T INCLUDE THE RISING PRICE OF USED CARS WHICH HAS MADE NEW CARS EVEN MORE AFFORDABLE BECAUSE MOST CARS ARE BOUGHT IN A SWAP WITH THE PROSPECT OF HIGHER INTEREST RATES MR LITTMANN DOESN'T EXPECT AFFORDABILITY TO IMPROVE IN 1994 9402110150 940211 ORDER TO BE ISSUED ON AGENCIES' EFFECT ON POLLUTION IN MINORITY COMMUNITIES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TODAY TO ISSUE A LONGAWAITED EXECUTIVE ORDER REQUIRING FEDERAL AGENCIES AND POSSIBLY GOVERNMENT CONTRACTORS TO MONITOR THE EFFECTS OF THEIR ACTIONS ON ENVIRONMENTAL HEALTH IN MINORITY COMMUNITIES KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY DECLINED TO DESCRIBE THE EXECUTIVE ORDER FULLY AT A MEETING WITH REPORTERS SHE SAID THE ADMINISTRATION IS TARGETING ALL USES OF FEDERAL FUNDS NOT JUST DIRECT SPENDING BY THE FEDERAL GOVERNMENT ONE PERSON CLOSE TO THE ADMINISTRATION'S DELIBERATIONS SAID THE ORDER WILL BE PURPOSELY VAGUE ABOUT THE EXTENT TO WHICH PRIVATE COMPANIES WILL BE COVERED HE SAID THE ORDER IS MORE LIKELY TO COVER PRIVATE COMPANIES THAT PERFORM CERTAIN GOVERNMENT FUNCTIONS COMPANIES THAT ARE CONTRACTED TO CLEAN UP NUCLEAR WEAPONS PLANTS FOR INSTANCE RATHER THAN COMPANIES SUCH AS PAPER SUPPLIERS WHICH DO BUSINESS WITH THE GOVERNMENT COMPANIES THAT ARE COVERED WOULD BE REQUIRED TO DEMONSTRATE THAT THEIR ACTIVITIES AREN'T DOING DISPROPORTIONATE ENVIRONMENTAL HARM IN MINORITY COMMUNITIES THE ORDER IS THE CLINTON ADMINISTRATION'S MOST VISIBLE EFFORT SO FAR TO ADDRESS THE ISSUE OF ENVIRONMENTAL JUSTICE THAT IS THE CONCERN THAT POLLUTION IS A CIVILRIGHTS PROBLEM AS WELL AS AN ENVIRONMENTAL ONE STUDIES HAVE FOUND THAT CERTAIN TYPES OF POLLUTION PARTICULARLY HAZARDOUS WASTE TEND TO BE CONCENTRATED IN MINORITY AND LOWINCOME NEIGHBORHOODS RAISING THE QUESTION OF WHETHER ENFORCEMENT OF ENVIRONMENTAL LAWS IN SUCH NEIGHBORHOODS IS MORE LAX THE IMMEDIATE EFFECT OF THE ORDER PROBABLY WILL BE TO IMPOSE NEW RECORDKEEPING REQUIREMENTS MS MCGINTY SAID THERE IS A NEED TO MEASURE NOT JUST THE IMPACT OF INDIVIDUAL POLLUTANTS ON POPULATIONS EXPOSED TO ENVIRONMENTAL HAZARDS BUT ALSO TOTAL AND CUMULATIVE IMPACTS OF ALL POLLUTANTS THAT AFFECT INDIVIDUAL AREAS SEPARATELY MS MCGINTY SAID THAT ENVIRONMENTAL PROTECTION AGENCY CHIEF CAROL BROWNER WAS SPEAKING FOR BILL CLINTON AND THE REST OF THIS ADMINISTRATION EARLIER THIS WEEK WHEN MS BROWNER ENDORSED LEGISLATION THAT LARGELY WOULD BAN SMOKING IN MOST NONRESIDENTIAL BUILDINGS THE BILL INTRODUCED BY REP HENRY WAXMAN D CALIF WOULD BAN SMOKING IN ANY NONRESIDENTIAL BUILDING REGULARLY ENTERED BY 10 OR MORE PERSONS AT LEAST ONE DAY A WEEK EXCEPT IN SPECIALLY DESIGNATED SMOKING AREAS THAT HAVE DIRECT EXHAUST OUTLETS TO THE OUTSIDE 9402110149 940211 MAJOR AUTO MAKERS SCHEDULE OVERTIME DETROIT GENERAL MOTORS CORP FORD MOTOR CO CHRYSLER CORP AND HONDA MOTOR CORP ALL SCHEDULED OVERTIME THIS WEEK AT US ASSEMBLY PLANTS ALTOGETHER THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 258719 CARS AND TRUCKS THIS WEEK AN INCREASE OF 267 FROM THE 204206 VEHICLES BUILT IN THE SAME WEEK LAST YEAR IN JANUARY THE AUTO MAKERS BUILT 934955 CARS AND TRUCKS UP 167 FROM THE YEAREARLIER TOTAL OF 801192 9402110148 940211 PARIBAS'S SCOA CHAIRMAN QUITS CITES DEBT WOES SPECIAL TO THE WALL STREET JOURNAL PARIS SOCIETE COMMERCIALE DE L'OUEST AFRICAIN AN INTERNATIONAL TRADING SUBSIDIARY OF CIE FINANCIERE DE PARIBAS SAID ITS CHAIRMAN HAS RESIGNED CITING THE COMPANY'S FINANCIAL DIFFICULTIES SCOA SHARES PLUNGED 34 ON THE PARIS BOURSE TO 865 FRANCS 145 FROM 894 FRANCS ON VOLUME OF 221000 SHARES THURSDAY THE BOARD APPOINTED GUY DE NARBONNE SCOA'S MANAGING DIRECTOR TO BE INTERIM CHAIRMAN SCOA SAID ITS FINANCIAL DIFFICULTIES TOGETHER WITH LAST MONTH'S 50 DEVALUATION OF THE CFA AFRICAN FRANC HAVE LED THE COMPANY TO ABANDON DEVELOPMENT PROJECTS THAT WERE PLANNED IN THE DISTRIBUTION SECTOR IN FRANCE IT SAID SCOA IS RETRENCHING AND WILL DEVOTE EFFORTS TO REDUCING DEBT THE CFA AFRICAN FRANC THE CURRENCY USED IN 14 FRENCHSPEAKING AFRICAN COUNTRIES WAS DEVALUED BY 50 AGAINST THE FRENCH FRANC LAST MONTH THE FIRST TIME THE CURRENCY HAD BEEN ADJUSTED SINCE 1948 AS A RESULT EARNINGS OF FRANC ZONE SUBSIDIARIES OF FOREIGN COMPANIES HAVE BEEN HALVED AS HAVE THE VALUES OF THEIR ASSETS A GROUP OF FRENCH CORPORATE INVESTORS ESTIMATES THAT THE CURRENCY ADJUSTMENT WILL COST FRENCH COMPANIES WITH FRANC ZONE OPERATIONS A TOTAL OF 10 BILLION FRANCS 167 BILLION THERE ARE ABOUT 1200 SUBSIDIARIES OF 80 FRENCH COMPANIES IN THE REGION PARIBAS OWNS A 537 MAJORITY INTEREST IN SCOA WHICH HAS EXTENSIVE TRADING INTERESTS IN FRENCH WEST AFRICA PARIBAS INDICATED RECENTLY THAT ITS 1993 EARNINGS HAD BEEN ERODED BY LOSSES INCURRED BY SCOA BUT IT DIDN'T PROVIDE ANY FIGURES SCOA HAS BEEN A FINANCIAL DRAIN ON PARIBAS FOR MANY YEARS IN THE FIRST SIX MONTHS OF 1993 ALONE SCOA INCURRED AN ATTRIBUTABLE CONSOLIDATED LOSS OF ALMOST 600 MILLION FRANCS 1005 MILLION COMPARED WITH 1362 MILLION FRANCS IN THE SAME PERIOD OF 1992 THE COMPANY POSTED A LOSS OF 277 MILLION FRANCS IN 1992 UP FROM 1997 MILLION FRANCS A YEAR EARLIER THE COMPANY HAS MADE A NUMBER OF STRATEGIC ERRORS IN RECENT YEARS ONE BEING A DIVERSIFICATION INTO COMPUTER DISTRIBUTION IN EUROPE THROUGH A SUBSIDIARY CALLED OMNILOGIC INTERNATIONAL THE UNIT CONTRIBUTED 482 MILLION FRANCS OF SCOA'S 1993 FIRSTHALF LOSS BEFORE IT WAS SOLD OFF IN SEPTEMBER FOR A SYMBOLIC FRANC THE FIRSTHALF LOSS MEANT THAT SCOA'S DEBTS EXCEEDED ITS ASSETS AND PARIBAS WAS FORCED TO COME TO ITS RESCUE WITH A TRANSFUSION OF 200 MILLION FRANCS OF FRESH CAPITAL THE COMPANY THEN CUT THE NOMINAL VALUE OF ITS SHARES TO 1 FRANC FROM 20 FRANCS AND SLASHED ITS CAPITAL TO 90 MILLION FRANCS FROM 182 BILLION WIPING OUT MORE THAN A BILLION FRANCS OF ACCUMULATED LOSSES IN THE PROCESS A REMAINING 681 MILLION FRANCS WERE TRANSFERRED TO A RESERVE ACCOUNT TO BE USED TO OFFSET NEW LOSSES IN 1993 ONE OF SCOA'S MAIN ACTIVITIES IS DISTRIBUTING AUTOMOBILES IN FRANCE AND IN EIGHT AFRICAN COUNTRIES AND THE COMPANY BORE THE FULL BRUNT OF THE 15 DROP IN FRENCH CAR SALES LAST YEAR SCOA HAS BEEN TRYING TO REDUCE ITS INDEBTEDNESS WITH ASSET SALES IN RECENT YEARS ITS CONSOLIDATED REVENUE FELL BY MORE THAN 40 BETWEEN 1990 AND 1992 TO 739 BILLION FRANCS 9402110147 940211 CLINTON'S FDIC NOMINEE CLEARS KEY SENATE PANEL WASHINGTON THE SENATE BANKING COMMITTEE VOTED TO CONFIRM RICKI TIGERT AS CHAIRWOMAN OF THE FEDERAL DEPOSIT INSURANCE CORP DESPITE REPUBLICAN EFFORTS TO USE HER NOMINATION TO RAISE QUESTIONS ABOUT PRESIDENT CLINTON'S AND HILLARY RODHAM CLINTON'S CONNECTION WITH A FAILED THRIFT MS TIGERT A LAWYER IN THE WASHINGTON OFFICE OF GIBSON DUNN & CRUTCHER THIS WEEK REMOVED HERSELF FROM CONSIDERATION OF MATTERS CONCERNING THE CLINTONS' BUSINESS AND POLITICAL ACTIVITIES MS TIGERT DESCRIBES HERSELF AS A CASUAL ACQUAINTANCE OF THE CLINTONS THE FDIC IS TANGENTIALLY INVOLVED IN LOOKING AT THE CIRCUMSTANCES SURROUNDING THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN WHICH HAS BEEN LINKED TO THE CLINTONS' PERSONAL AND POLITICAL FINANCES THE NOMINATION CLEARED THE PANEL ON A 161 VOTE DESPITE A STATEMENT BY SEN LAUCH FAIRCLOTH R NC THAT THE CHAIRMANSHIP OF THE FDIC IS NOT A PLACE TO PUT ANOTHER CLINTON PERSONAL FRIEND HE WAS THE SOLE DISSENTING VOTE THE SIZE OF THE MARGIN INDICATES THAT MS TIGERT WILL WIN CONFIRMATION FROM THE FULL SENATE ALTHOUGH CONSIDERATION OF HER NOMINATION WILL GIVE THE GOP ANOTHER OPPORTUNITY TO RAISE MADISON GUARANTY A SPECIAL COUNSEL IS INVESTIGATING THE MATTER THE PANEL ALSO CLEARED THE NOMINATION OF ANDREW HOVE NOW ACTING CHAIRMAN OF THE FDIC TO A SECOND FIVEYEAR TERM AS THE AGENCY'S VICE CHAIRMAN AND THE NOMINATION OF ANNE HALL A VICE PRESIDENT OF BANC ONE CORP IN COLUMBUS OHIO TO THE FIVEMEMBER FDIC BOARD 9402110145 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD SNOOPING VS SECRECY CARPHONE USERS WANTED PRIVACY GOVERNMENTS WANTED TO EAVESDROP GUESS WHO WON BY RICHARD L HUDSON LONDON A FEW YEARS AGO SOME CLEVER BRITISH CRYPTOGRAPHERS DEVISED A PLAN TO PROTECT MOBILEPHONE USERS FROM EAVESDROPPERS THEY INVENTED A SECRET CODE TO SCRAMBLE THE VOICES A CODE SO GOOD THAT WITHOUT THE KEY IT WOULD TAKE THE WORLD'S FASTEST SUPERCOMPUTERS SEVERAL HOURS TO DECIPHER EVEN ONE CONVERSATION ALAS IT WAS JUST A BIT TOO GOOD THERE HANGS A SPY STORY OF THE WIRELESS AGE EMBROILING THE NATIONAL INTELLIGENCE AGENCIES OF THE US BRITAIN FRANCE THE NETHERLANDS AND AUSTRALIA IN A SECRETIVE FOURYEAR TUSSLE WITH SOME OF THE WORLD'S BIGGEST TELEPHONE COMPANIES THE END CAME ONLY A FEW MONTHS AGO WITH THE SPOOKS WINNING AND THE PHONE ENGINEERS LOSING BUT HARD FEELINGS LINGER POSSIBLY THEY WATCH TOO MANY JAMES BOND MOVIES GRUMBLES KARI MARTTINEN A TELECOM FINLAND EXECUTIVE WHO TANGLED WITH THE INTELLIGENCE AGENCIES BUT THERE'S MORE TO THIS STORY THE STRANGE CASE OF A5/1 AS THE CODE IS CALLED WAS THE FIRST PRECEDENTSETTING INSTANCE OF AN INCREASINGLY COMMON CONFLICT IN WIRELESS COMMUNICATIONS CARPHONE USERS WANT PRIVACY BUT GOVERNMENTS WANT TO LISTEN IN ON CRIMINALS TERRORISTS OR FOREIGN AGENTS WITH MOST MOBILE PHONES TODAY IT'S A SNAP FOR ANYONE WHETHER POLICEMAN OR VOYEUR TO EAVESDROP OVER THE AIRWAVES BUT AS THE TECHNOLOGY ADVANCES IT BECOMES HARDER THUS WESTERN INTELLIGENCE AGENCIES ARE BATTLING TO DRAW THE LINE RIGHT NOW TO KEEP FUTURE GENERATIONS OF MOBILE PHONES SAFE FOR OFFICIAL TAPPING THEY'RE LOOKING AHEAD SAYS JAMES BIDZOS PRESIDENT OF RSA DATA SECURITY INC A REDWOOD CITY CALIF CRYPTOGRAPHY CONCERN THAT HAS CLASHED OFTEN WITH THE INTELLIGENCE AGENCIES THEY'RE SEEING THAT EVENTUALLY EVERYONE WILL BE CARRYING PORTABLE PERSONAL COMMUNICATIONS DEVICES THAT IF TOO SECURE COULD MAKE INTELLIGENCE WORK EVEN HARDER THEY DON'T WANT THIS SECURITY TECHNOLOGY TO GET OUT IT'S A THREAT IN ANY FORM THE STORY BEGINS IN THE LATE 1980S WHEN A COMMITTEE OF TELEPHONE ENGINEERS FROM AROUND WESTERN EUROPE WAS DESIGNING WHAT WOULD SOON BECOME ONE OF THE WORLD'S MOST ADVANCED MOBILETELEPHONE SYSTEMS THE FIRST ALLDIGITAL CARPHONE NETWORK GSM OR GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS BY NOW HAS A MILLION USERS IN EUROPE AND 50 MILLION FORECAST WORLDWIDE BY 2000 IT AND SOME RIVAL SYSTEMS BEING TESTED IN THE US AND JAPAN ARE TO SUCCEED THE CURRENT GENERATION OF ANALOG CELLULAR TELEPHONES IN CONTRAST TO STATICPRONE ANALOG SYSTEMS A DIGITAL CAR PHONE ELECTRONICALLY CONVERTS CONVERSATIONS INTO THE BITS AND BYTES OF A COMPUTER TO OFFER A CLEARER CONNECTION AND EXTRA FEATURES A BIG PROBLEM WITH ANALOG SYSTEMS IS THAT THEY LEAK SECRETS LIKE A US CONGRESSIONAL COMMITTEE TO EAVESDROP ALL IT TAKES IS AN OFFTHESHELF RADIO SCANNER THE WORLD'S MOST CELEBRATED CASE OCCURRED IN BRITAIN WHEN SOMEONE TAPED A COMPROMISING CELLULAR CALL BETWEEN PRINCESS DIANA AND A MALE FRIEND THE TAPE WAS LEAKED TO NEWSPAPERS IN 1992 AND SOON ALL BRITAIN WAS READING ABOUT THE PRINCESS'S CHAT WITH SQUIDGY AS SHE CALLED HIM THE MYSTERY OF WHO DARED EAVESDROP ON A ROYAL CALL HAS NEVER BEEN RESOLVED THOUGH MOST SIGNS POINTED TOWARD BRITAIN'S AGGRESSIVE INTELLIGENCE AGENCIES GSM MIGHT HAVE PRESERVED THE PALACE DECORUM BECAUSE A GSM PHONE WORKS LIKE A COMPUTER IT CAN SCRAMBLE A CALLER'S WORDS BY CRANKING THE ELECTRONIC SIGNALS THAT REPRESENT THEM THROUGH A PREARRANGED SECRET CODE IT ALL HAPPENS ELECTRONICALLY SO THE CALLER DOESN'T NOTICE AND THE TELEPHONE COMPANY COMPUTER USES THE SAME CODE TO UNSCRAMBLE THE WORDS YET TO ANYONE LISTENING IN OVER THE AIR THE CONVERSATION SOUNDS LIKE THE SQUEALS OF A COMPUTER MODEM BUT ONE THAT'S SPEAKING A NONSENSE LANGUAGE NO NORMAL COMPUTER CAN FATHOM THE HEART OF THIS SYSTEM IS THE CIPHER ITSELF AND THAT'S WHERE THE CRYPTOGRAPHERS CAME IN THE EUROPEAN GSM PLANNERS TURNED TO BRITAIN A WORLD CENTER FOR CIPHERS EVER SINCE THE BRITISH CRACKED NAZI GERMANY'S FAMOUS ENIGMA CODE IN WORLD WAR II THEIR GOAL WAS TO MAKE THE CODE TOUGH BUT NOT IMPOSSIBLY SO THE CRYPTOGRAPHERS WEREN'T BUILDING A MILITARYGRADE CIPHER ALGORITHM OR MATHEMATICAL FORMULA SAYS ONE INDUSTRY OFFICIAL WHO DECLINES TO BE NAMED INSTEAD THE AIM WAS TO PROVIDE A REASONABLE COMMERCIAL LEVEL OF SECURITY TO PREVENT PEOPLE FROM BUILDING SCANNERS TO EAVESDROP AS EASILY AS WITH THE OLD ANALOG SYSTEMS IN HINDSIGHT IT APPEARS THEY OVERDID IT THEY CALLED THEIR BRAINCHILD A5/1 A FOR ALGORITHM 5 FOR THE FIFTH OF NINE FORMULAS INVOLVED IN GSM SECURITY AND 1 FOR THE FIRST VERSION HOW IT WORKS IS SECRET EVEN TODAY CELLULARTELEPHONE MANUFACTURERS USING IT MUST SIGN CONFIDENTIALITY PLEDGES AND GET A SPECIAL LICENSE FROM THE BRITISH GOVERNMENT BUT IN GENERAL PART OF THE CODE IS HELD BY THE PHONECOMPANY COMPUTER PART ON A COMPUTER CHIP INSIDE THE GSM PHONE AND PART ON A SPECIAL CREDITCARDLIKE DEVICE THAT THE USER SLIPS INTO THE PHONE TO TURN IT ON WITHOUT ALL THREE THE ALGORITHM CAN'T FUNCTION A FEATURE TO DISCOURAGE SOMEONE FROM CRACKING THE CODE JUST BY STEALING AND ANALYZING A GSM TELEPHONE EVEN TOUGHER FOR EVERY CALL A NEW CODE IS CREATED THE GSM PLANNERS AT EUROPE'S MAJOR TELEPHONE COMPANIES WERE DELIGHTED WITH A5/1 THEY FIGURED SUCH TIGHT SECURITY WOULD BE A BIG SELLING POINT AND THE MAIN CARPHONE MAKERS IN EUROPE MOTOROLA INC SWEDEN'S TELEFON AB LM ERICSSON FINLAND'S OY NOKIA AND THE PANASONIC DIVISION OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO BEGAN INSCRIBING THE CODE ON SILICON CHIPS THEY AND GSM'S BIGGEST PHONECOMPANY BACKERS INCLUDING DEUTSCHE BUNDESPOST TELEKOM FRANCE TELECOM AND BRITISH TELECOMMUNICATIONS PLC BEGAN PLANNING GSM SYSTEMS AT HOME AND TRYING TO SELL THEM ABROAD INTEREST HAS BEEN HIGH 45 NATIONS HAVE AGREED TO OPEN GSM SYSTEMS AND 33 MORE SAY THEY PLAN TO BUT IN 1989 A SNAG AROSE BRITAIN BEGAN REFUSING EXPORT LICENSES THE SECURITY AGENCIES THERE AND IN WASHINGTON PARIS AND THE HAGUE HAD STARTED COMPARING NOTES AND GETTING ALARMED AT THE THOUGHT OF JUST ANYBODY GETTING HOLD OF THE CODES IN PART SAYS ONE AMERICAN TELEPHONE EXECUTIVE THE SPY AGENCIES DIDN'T WANT A PROMISING NEW OPPORTUNITY FOR ELECTRONIC EAVESDROPPING NEW MOBILE TELEPHONES IN SAY RUSSIA RENDERED UNTAPPABLE THEY ALSO WORRIED THAT THE CODE TECHNOLOGY ITSELF COULD BE TAKEN FROM GSM PHONES AND APPLIED TO MILITARY PROJECTS SAY MISSILEGUIDANCE SYSTEMS IN IRAQ THEIR OBJECTIONS TOOK THE GSM PLANNERS BY SURPRISE THEY HADN'T THOUGHT TO CHECK WITH THE SECURITY AGENCIES IN ADVANCE AND BY NOW THE INDUSTRY HAD ALREADY SPENT TOO MUCH MONEY ON A5/1 TO WALK AWAY FROM IT BESIDES MANY INDUSTRY ENGINEERS THOUGHT THE WORRIES OVERBLOWN EVEN WITH THE CODE WORKING SAYS TELECOM FINLAND'S MR MARTTINEN FOR A TIME CHAIRMAN OF THE GSM PLANNING COMMITTEE A SECURITY AGENCY COULD STILL EAVESDROP BY TAPPING INTO THE PHONE LINES OR SWITCHES ONLY THE RADIOWAVE PORTION OF THE CALL IS ENCRYPTED THERE ARE SO MANY DIFFERENT WAYS TO EAVESDROP THE RADIO PART IS THE MOST STUPID AND DIFFICULT TO TACKLE HE SAYS BUT THE AGENCIES HELD THE TRUMP CARDS VETO POWER OVER THE EXPORT LICENSES A COMPROMISE EMERGED LAST YEAR WESTERN EUROPEAN NATIONS AND A FEW OTHER PRIVILEGED MARKETS INCLUDING HONG KONG AUSTRALIA AND HUNGARY GET THE ORIGINAL A5/1 CODE US MOBILEPHONE COMPANIES HAVEN'T DECIDED YET WHETHER THEY WILL USE GSM AT ALL THEY HAVE SOME COMPETING DIGITAL TECHNOLOGIES WITH ASYET UNRESOLVED ENCRYPTION DISPUTES MOST OTHER NATIONS THAT TAKE GSM GET A NEW EASIERTOCRACK CIPHER CALLED A5/2 AND THE MOST SENSITIVE COUNTRIES SUCH AS RUSSIA AND IRAQ DON'T GET ANY CRYPTOGRAPHY AT ALL IN THEIR GSM SYSTEMS UNFORTUNATELY THIS RUFFLES DIPLOMATIC FEATHERS MALAYSIA IS MIFFED THAT IT GETS THE WEAK CODE WHILE NEIGHBORING SINGAPORE GETS THE STRONG ONE SAUDI ARABIA AND KUWAIT COMPLAIN THAT THE UNITED ARAB EMIRATES AND QATAR GOT SPECIAL DISPENSATIONS TO USE THE HIGHGRADE CODE HOW DO YOU EXPLAIN TO THE SAUDIS THAT WE'LL GIVE IT A5/1 TO THE UAE BUT NOT TO YOU ASKS GEORGE SCHMITT AN EXECUTIVE OF GERMAN MOBILEPHONE OPERATOR MANNESMANN AG AND CURRENT CHAIRMAN OF THE GSM PLANNING COMMITTEE THOSE ARE THE TOUGH THINGS FOR ME AS CHAIRMAN AND THEY DON'T MAKE A LOT OF SENSE THE CASE OF RUSSIA IS MORE COMPLEX THOUGH LOCAL POLITICIANS THERE GROUSE ABOUT THE PERCEIVED INDIGNITY OF GETTING CIPHERLESS GSM RUSSIAN SECURITY AGENCIES MAY BE PLEASED EARLIER THIS YEAR MOSCOW ISSUED LICENSES TO WESTERN TELEPHONE COMPANIES TO OPEN GSM SYSTEMS IN 12 CITIES AND THE LICENSE INCLUDES PECULIAR LANGUAGE ENSURING THE ABILITY OF THE STATE SECURITY ORGANS TO WORK WITH THE GSM OPERATOR TO DETERMINE INFORMATION SAYS ONE WESTERN TELEPHONE EXECUTIVE NOBODY KNOWS EXACTLY WHAT THAT MEANS BUT THE WESTERNERS ASSUME THEY MAY HAVE TO HELP THE LOCAL SECURITY FORCES EAVESDROP ON THE CIPHERLESS GSM CALLS IN RUSSIA INDUSTRY EXECUTIVES EXPECT A FURTHER EASING OF THE RULES THIS YEAR PERHAPS UPGRADING THE NOCODE COUNTRIES TO GET A5/2 BUT SIMILAR QUARRELS ARE GOING ON RIGHT NOW OVER THE MANY OTHER FLAVORS OF DIGITAL MOBILE TECHNOLOGY THAT HAVE EMERGED SINCE GSM US MANUFACTURERS RECENTLY AGREED TO WEAKEN THE ENCRYPTION FOR CELLULAR DIGITAL PACKET DATA OR CDPD A NEW STANDARD TO SEND DATA OVER CELLULARPHONE NETWORKS SAYS RSA DATA'S MR BIDZOS AND OTHER CONTROVERSIES ARE STILL UNRESOLVED SUCH AS OVER HOW TO ENCRYPT DATA OVER NETWORKS OF PORTABLE COMPUTERS FOR THESE QUARRELS SAYS MANNESMANN'S MR SCHMITT THE GSM CASE PROVIDES A CLEAR LESSON ENCRYPT IT GOOD BUT DON'T ENCRYPT IT TOO GOOD MR HUDSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9402110144 940211 WHO'S NEWS BRAMWELL OPTS TO LEAVE GABELLI FUNDS RATHER THAN RELOCATE NEW YORK OFFICE BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MONEY MANAGER MARIO GABELLI IS LOSING ELIZABETH BRAMWELL A WELLKNOWN MANAGER OF ONE OF HIS STOCK FUNDS BECAUSE HE ASKED HER TO MOVE HER OFFICE OUT OF NEW YORK CITY ELIZABETH BRAMWELL IS LEAVING HER JOB AS PORTFOLIO MANAGER OF GABELLI GROWTH FUND TO FORM BRAMWELL CAPITAL MANAGEMENT HER OWN MONEYMANAGEMENT FIRM MS BRAMWELL TOLD MR GABELLI YESTERDAY THAT SHE WAS LEAVING THE FUND WHICH SHE HAS MANAGED SINCE IT BEGAN IN 1987 SHE HAS BEEN WITH GABELLI & CO SINCE 1985 AND HAD MET MR GABELLI YEARS BEFORE AT COLUMBIA BUSINESS SCHOOL MS BRAMWELL SAID IN AN INTERVIEW THAT SHE HAD WANTED TO RUN HER OWN INVESTMENT FIRM FOR A LONG TIME BUT THE CATALYST FOR HER DEPARTURE FROM GABELLI FUNDS INC SHE SAID WAS WHEN MR GABELLI DECIDED RATHER ABRUPTLY THAT HE WANTED TO MOVE EVERYTHING UP TO RYE NY INCLUDING HER OFFICE IN RECENT WEEKS MS BRAMWELL STAYED IN NEW YORK CITY WHEN MOST OF MR GABELLI'S INVESTMENT ORGANIZATION MOVED TO SUBURBAN RYE TWO YEARS AGO MS BRAMWELL SAID SHE NEEDED TO BE IN NEW YORK CITY TO MEET WITH MANAGEMENTS OF COMPANIES IN WHICH SHE INVESTS GOING BACK AND FORTH DURING TRADING HOURS TO RYE DIDN'T WORK FOR ME SHE SAID MS BRAMWELL ALSO SAID SHE WANTED MORE RESOURCES TO RUN THE FUND THAN MR GABELLI WAS GIVING HER AS HER FUND GREW IT CURRENTLY HAS 675 MILLION IN ASSETS SHE FELT IT NEEDED MORE STAFF I COULDN'T HIRE THE PEOPLE I NEEDED TO RUN THIS FUND SHE SAID I REALLY THOUGHT THAT THE PERFORMANCE THAT MY SHAREHOLDERS EXPECT OF ME I COULDN'T DELIVER UNLESS I CONTROLLED THE BUDGET GABELLI FUNDS SAID IT IS SEARCHING FOR A NEW MANAGER FOR GABELLI GROWTH IN THE MEANTIME MR GABELLI AND A GROUP OF ANALYSTS WILL RUN THE FUND MR GABELLI ALREADY MANAGES SEVEN OF THE 11 GABELLI FUNDS WHICH HAVE 265 BILLION IN ASSETS MS BRAMWELL GAINED SOME RENOWN DURING THE LATE 1980S WHEN HER FUND OUTPERFORMED THOSE RUN BY HER BOSS MR GABELLI WHILE MR GABELLI IS A VALUE INVESTOR LOOKING FOR CHEAP STOCKS AND TAKEOVER PLAYS MS BRAMWELL TENDS TO INVEST IN STOCKS OF FASTGROWING COMPANIES IN THE PAST COUPLE OF YEARS THE PERFORMANCE OF MR GABELLI'S FUNDS HAS OVERTAKEN MS BRAMWELL'S FUND SHE SAYS SOME OF HER FUND'S LOWER PERFORMANCE CAME FROM HER INABILITY TO HIRE MORE STAFF AS THE FUND GREW IN SIZE MS BRAMWELL WOULDN'T SAY OUTRIGHT WHETHER HER NEW FIRM WOULD MANAGE MUTUAL FUNDS PRIVATE ACCOUNTS FOR INSTITUTIONS OR WEALTHY INDIVIDUALS OR SOME COMBINATION MR GABELLI IN A STATEMENT SAID HE REGRETTED MS BRAMWELL'S DEPARTURE HIS FIRM WOULDN'T COMMENT ON MS BRAMWELL'S REMARKS ABOUT THE CONDITIONS THAT LED TO HER DEPARTURE 9402110143 940211 TECHNOLOGY APPLE AND ORACLE TO OFFER TV SETTOP DECODER BOX CUPERTINO CALIF APPLE COMPUTER INC IS ENTERING THE HOTLY CONTESTED MARKET FOR COMPUTERIZED TV SETTOP DECODER BOXES IN A PARTNERSHIP WITH SOFTWARE SUPPLIER ORACLE CORP NEW SETTOP DECODERS ARE NEEDED TO DELIVER NEW ENTERTAINMENT AND EDUCATION SERVICES SUCH AS VIDEOONDEMAND AND INTERACTIVE SHOPPING OVER CABLE AND TELEPHONE LINES THE TWO COMPANIES SAID THE NEW SETTOP BOX WILL BE BASED ON APPLE'S MACINTOSH COMPUTER WHICH USES APPLE'S PROPRIETARY OPERATING SYSTEM AND A MICROPROCESSOR CHIP FROM MOTOROLA INC THE NEW BOX WILL WORK WITH ORACLE MEDIA SERVER SOFTWARE WHICH WOULD BE USED TO STORE AND RETRIEVE MOVIES AND OTHER MULTIMEDIA INFORMATION THE COMPANIES SAID THEY SAID THEY PLAN TO DELIVER THE TECHNOLOGY ON A TRIAL BASIS IN THE FIRST HALF OF THIS YEAR THOUGH THEY PROVIDED NO MORE DETAILS SOURCES CLOSE TO ORACLE REDWOOD CITY CALIF HAVE PREVIOUSLY DISCLOSED THAT THE MACINTOSH TECHNOLOGY WOULD BE USED BY BRITISH TELECOMMUNICATIONS PLC FOR A TRIAL IN THE LONDON AREA 9402110142 940211 AMERICAN EXPRESS STUDIES COBRANDED' CARD LINKS NEW YORK AMERICAN EXPRESS CO IS TAKING A CLOSE LOOK AT OFFERING CHARGE CARDS TIED TO MAJOR MANUFACTURERS AND RETAILERS AND THAT OFFER DISCOUNTS TO USERS KENNETH I CHENAULT HEAD OF THE COMPANY'S DOMESTIC CREDIT AND CHARGECARD DIVISION TOLD SECURITIES ANALYSTS YESTERDAY THAT THE TOPIC OF SOCALLED COBRANDED CARDS AS WELL AS OTHER STRATEGIC ALLIANCES IS A SERIOUS ONE AT THE BIG CHARGECARD AND TRAVEL COMPANY WE'RE NOT JUST PLANNING WE'RE WORKING ON THEM NOW HE SAID ALTHOUGH AMERICAN EXPRESS OFFERS AN AFFINITY CARD THAT AWARDS FREQUENTFLIER MILES AND HAS A SMALL COBRANDED CARD WITH AMERICAN TELEPHONE & TELEGRAPH CO IT HAS SO FAR AVOIDED THE RUSH TO LAUNCH MAJOR COBRANDED PRODUCTS WITH SUCH CARDS ISSUERS JOIN UP WITH MAJOR PRODUCT MANUFACTURERS TO JOINTLY SPONSOR CARDS THAT PROVIDE CARDHOLDERS WITH DISCOUNTS BASED ON THEIR CARD USAGE 9402110141 940211 MORE AFTERSHOCKS HIDDEN DAMAGE TO HOUSES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THREE WEEKS AFTER THE NORTHRIDGE EARTHQUAKE ASSAULTED SOUTHERN CALIFORNIA ANOTHER DISTURBING JOLT HAS HIT ROSS AND JANEEN SWING AND THEIR STUDIO CITY HOME THE COUPLE SUSTAINED AN ESTIMATED LOSS OF 20000 WHEN THEIR CHIMNEY CRASHED THROUGH THE ROOF OF THEIR THREESTORY HOUSE NOW AFTER NEARLY 4000 AFTERSHOCKS AND BOUTS OF HEAVY RAIN THEIR FOUNDATION APPEARS TO BE SETTLING INTO THE HILLSIDE IT'S TOO EARLY TO TELL BUT THAT COULD COST ANOTHER 20000 SAYS MR SWING A VICE PRESIDENT FOR CAESARS WORLD INC ALL AROUND THE LOS ANGELES AREA THOUSANDS OF HOMEOWNERS ARE STILL DISCOVERING HIDDEN DAMAGE RANGING FROM CRACKED STUCCO TO RUPTURED FOUNDATIONS MUCH OF WHICH ISN'T COVERED BY INSURANCE ONLY A QUARTER TO A THIRD OF THE REGION'S HOMEOWNERS CARRY EARTHQUAKE INSURANCE AND THOSE THAT DO FACE VERY HIGH DEDUCTIBLES THEY ARE ALSO FINDING THAT WHAT APPEARED TO BE RELATIVELY MINOR PROBLEMS WILL BE VERY EXPENSIVE TO REPAIR THE MASSIVE AND WIDESPREAD DESTRUCTION OF THE JAN 17 TEMBLOR NOW ESTIMATED AT EITHER 67 OR 68 ON THE RICHTER SCALE CONTINUES TO RIPPLE THROUGH THE REALESTATE MARKET RATTLING INSURERS LENDERS REALTORS AND TENS OF THOUSANDS OF RESIDENTS WHILE OFFICIAL COST ESTIMATES ARE REVISED UPWARD OR DOWNWARD ALMOST DAILY BANK OF AMERICA WHICH HOLDS ABOUT 558 BILLION IN FIRST AND SECOND MORTGAGES AND MANUFACTUREDHOUSING LOANS IN THE AFFECTED AREA SAYS SOME PROBLEMS DON'T SURFACE FOR WEEKS OR EVEN MONTHS CAROLYN SHERWOODCALL AN ECONOMIST WITH THE FEDERAL RESERVE BANK OF SAN FRANCISCO NOTES THAT THE QUAKE'S DISRUPTIONS INCLUDE SOME LOSS OF WORKER PRODUCTIVITY AND INDIVIDUAL NET WEALTH THE ECONOMIC STIMULUS FROM BILLIONS IN FEDERAL AID AND INSURANCE MONEY DOESN'T DIRECTLY OFFSET THOSE FACTORS SHE ADDS DENNIS FORST A SECURITIES ANALYST WHOSE ENCINO HOME SUSTAINED AN ESTIMATED 15000 IN UNINSURED DAMAGE AGREES IT'S NOT JUST THE MONEY HE SAYS THE BIGGEST ISSUE FOR ME IS THE TIME AWAY FROM WORK OR THE TIME AT WORK YOU SPEND WORRYING ABOUT IT CHARLES RINEHART CHIEF EXECUTIVE OF HF AHMANSON CO'S HOME SAVINGS OF AMERICA UNIT SAYS THE COMPANY IS SIFTING THROUGH ITS 32000 RESIDENTIAL LOANS IN THE AFFECTED AREA HOME SAVINGS IS OFFERING CUSTOMERS EVERYTHING FROM ADVICE ON DEALING WITH INSURERS TO BELOWMARKET LOANS FOR THOSE WHO MIGHT OTHERWISE RISK DEFAULT OR SIMPLY WALK AWAY FROM THEIR HOMES SOME EMPLOYERS SUCH AS WALT DISNEY CO HUGHES AIRCRAFT CO AND TIMES MIRROR CO HAVE TRIED TO BRIDGE THE GAP FOR QUAKESHOCKED EMPLOYEES BY OFFERING LOW OR NOINTEREST LOANS VIA CREDIT UNIONS BUT EVEN FOR THOSE WHO ARE INSURED OR LOOK FINANCIALLY PROSPEROUS ON PAPER THE RECOVERY MAY BE AN UPHILL CLIMB HOME BUYERS AND SELLERS HAVE BEEN THROWN IN LIMBO AS WELL A SURVEY BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SAID ABOUT 21 OF PENDING HOME ESCROWS AND REFINANCINGS IN SOUTHERN CALIFORNIA WERE DISRUPTED BY THE EARTHQUAKE DELINQUENCY AND DEFAULT RATES ARE ALSO EXPECTED TO BE MODERATELY HIGHER IN THE AREA AND SOME ECONOMISTS LIKE FIRST INTERSTATE BANCORP'S JAMES PADINHA SAY SAN FERNANDO VALLEY REALESTATE PRICES MAY DROP AN ESTIMATED 10 IN THE NEAR TERM RON KELLY A NORTHRIDGE REALTOR WHO OWNS FIVE HOUSES IN THE AREA CAN REEL OFF AN EYEPOPPING LIST OF DAMAGES FOUR CHIMNEYS FIVE CINDERBLOCK WALLS TWO DAMAGED HEATING SYSTEMS TWO CRACKED POOLS OR ABOUT 75000 WORTH OF DESTRUCTION MOREOVER THE DELAY OF SEVERAL CLIENTS' PENDING TRANSACTIONS HAS PUT HIM IN A TEMPORARY LIQUIDITY CRUNCH ESPECIALLY IN LIGHT OF HIGH DEDUCTIBLE LIMITS ON HIS EARTHQUAKE INSURANCE STILL MR KELLY REMAINS OPTIMISTIC RELATIVELY FEW CLIENTS HAVE PULLED OUT OF ESCROW HE SAYS AND THINGS ARE BOUND TO RECOVER WITHIN A FEW YEARS I HAVE THE OPTION OF STAYING HERE OR MOVING TO KANSAS WHERE I COULD FREEZE TO DEATH OR GET HIT BY A TORNADO HE ADDS I'VE LOOKED AROUND AND I THINK I'LL STAY HERE ECONOMISTS SAY FACTORS TIED TO RESIDENTIAL DAMAGE LAGGING HOME PRICES LESS CONSUMER CONFIDENCE CHANGES IN RETAIL SPENDING PATTERNS NET LOSS OF PERSONAL WEALTH ARE AMONG THE FIRST TO BE REFLECTED IN REGIONAL ECONOMIC DATA LOCAL OFFICIALS ESTIMATE THAT 15000 HOUSES AND APARTMENTS WERE MADE UNINHABITABLE BY THE QUAKE WHILE TENS OF THOUSANDS OF OTHERS SUSTAINED ENOUGH DAMAGE TO FORCE HOMEOWNERS TO REACH INTO THEIR POCKETS FOR REPAIRS FROM A DAMAGE STANDPOINT THE QUAKE ALREADY QUALIFIES AS THE NATION'S THIRDCOSTLIEST NATURAL DISASTER IN RECENT YEARS WITH AN ESTIMATED 25 BILLION IN INSURED LOSSES ACCORDING TO PROPERTY CLAIM SERVICES OF RAHWAY NJ A DIVISION OF THE AMERICAN INSURANCE SERVICES GROUP THAT AMOUNT WAS SURPASSED ONLY BY 1992'S HURRICANE ANDREW WITH 165 BILLION IN INSURED LOSSES AND 42 BILLION FROM HURRICANE HUGO IN 1989 IF OUR ESTIMATES HAVE TO BE REVISED AGAIN IT WOULD BE BECAUSE OF ADDITIONAL CLAIMS FROM HIDDEN DAMAGE SAYS JIM WELSH AN ADJUSTOR WITH PROPERTY CLAIM SERVICES 9402110140 940211 ENDOWMENT UP MEDICAL INSTITUTE EXPANDS STAFF BIG PHILANTHROPY FOUNDED BY HOWARD HUGHES IS ADDING 49 RESEARCHERS BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ENRICHED BY GAINS ON ITS ENDOWMENT FUND THE HOWARD HUGHES MEDICAL INSTITUTE IS BROADLY EXPANDING ITS TEAM OF INVESTIGATORS DOING BASIC BIOMEDICAL RESEARCH THE CHEVY CHASE MD INSTITUTE WHOSE FINANCIAL ASSETS OF 78 BILLION MAKE IT THE BIGGEST PRIVATE PHILANTHROPY IN THE COUNTRY PLANS TO ADD 49 SCIENTISTS AT A COST OF ABOUT 30 MILLION A YEAR TO ITS NATIONWIDE TEAM OF 225 INVESTIGATORS THE INVESTIGATORS AND THEIR WORK ARE FUNDED BY THE INSTITUTE BUT THE SCIENTISTS THEMSELVES STAY AT THEIR HOME UNIVERSITIES AND HOSPITALS FOUNDED IN 1953 BY ECCENTRIC BILLIONAIRE AVIATOR HOWARD HUGHES THE PRIVATE MEDICAL RESEARCH ORGANIZATION'S ENDOWMENT SWELLED BY SOME 52 BILLION AFTER THE 1985 SALE OF HUGHES AIRCRAFT CO TO GENERAL MOTORS CORP LAST YEAR ITS ENDOWMENT GREW BY 780 MILLION PURNELL CHOPPIN PRESIDENT OF THE INSTITUTE SAID THAT BY VIRTUE OF THE SUCCESS OF OUR ENDOWMENT WE CAN EXPAND AT A TIME WHEN THE OPPORTUNITY FOR RESEARCH IS ENORMOUS AND SUPPORT BY THE FEDERAL GOVERNMENT IS LEVELING OFF WHILE THE INSTITUTE DIDN'T REVEAL THE NAMES OF THE NEW INVESTIGATORS IT NOTED 21 ARE WOMEN AND SIX ARE MINORITIES ONLY 22 OF THE 225 CURRENT INVESTIGATORS ARE WOMEN ONE OF THE THINGS WE'RE VERY CONCERNED ABOUT IS TO INCREASE THE NUMBER OF WOMEN IN THE PIPELINE DR CHOPPIN SAID ANOTHER CONCERN WAS EMPHASIZING EARLYSTAGE CAREERS HE ADDED THE SCIENTISTS WERE CHOSEN AFTER A NATIONAL COMPETITION AMONG MORE THAN 200 INSTITUTIONS THAT BEGAN IN MARCH THE CONTEST SELECTED 44 SCIENTISTS FIVE WERE ADDED AS NORMAL APPOINTMENTS THE 22 INCREASE IN THE NUMBER OF INVESTIGATORS COMES AT A TIME WHEN THE BREAKTHROUGHS IN BASIC SCIENCE PARTICULARLY IN GENETICS AND MOLECULAR BIOLOGY ARE OCCURRING AT AN EXTRAORDINARY RATE SAYS JEROME P KASSIRER EDITOR IN CHIEF OF THE NEW ENGLAND JOURNAL OF MEDICINE AT THE SAME TIME FUNDING FOR THE EXPENSIVE WORK HASN'T INCREASED AT A RATE SUFFICIENT TO KEEP UP WITH WHAT IS REQUIRED IN THIS KIND OF RESEARCH DR KASSIRER ADDED STILL THE INSTITUTE'S BUDGET THIS YEAR OF SOME 333 MILLION IS ONLY ABOUT 3 OF THE BUDGET OF THE NATIONAL INSTITUTES OF HEALTH WHICH IS ABOUT 11 BILLION IN THE FISCAL YEAR ENDING AUG 31 THE INSTITUTE WILL SPEND SOME 280 MILLION ON RESEARCH AND PROVIDE 53 MILLION IN GRANTS THE INSTITUTE'S DR CHOPPIN SAID HE ADDED IT PLANS TO SIGNIFICANTLY EXPAND ITS GRANTS PROGRAM TAX LAWS REQUIRE THE MEDICAL RESEARCH ORGANIZATION TO SPEND AT LEAST 35 OF ITS ENDOWMENT ANNUALLY THE INVESTIGATORS' WORK HAS EMPHASIZED GENETICS CELL BIOLOGY IMMUNOLOGY NEUROSCIENCE AND STRUCTURAL BIOLOGY WITH APPLICATION TO DISEASES SUCH AS CANCER ACQUIRED IMMUNE DEFICIENCY SYNDROME TUBERCULOSIS AND GENETIC DISEASES FOR INSTANCE SOME 35 INVESTIGATORS RECENTLY WERE WORKING IN ONE WAY OR ANOTHER ON AIDS DR CHOPPIN SAID THE ORGANIZATION SUPPORTS MORE THAN 21 OF ALL PRIVATE NOTFORPROFIT MEDICAL RESEARCH IN THE US ABOUT ONETHIRD OF ITS SCIENTISTS WORK ON SPECIFIC DISEASES AND FIVE OF ITS INVESTIGATORS HAVE WON NOBEL PRIZES WHEN THE COMPETITION FOR NEW INVESTIGATORS WAS HELD THE INSTITUTE ENVISIONED ADDING 12 SCIENTISTS BUT KEPT INCREASING THE NUMBER AS ITS INVESTMENT PORTFOLIO GAINED GROUND AS THE YEAR WORE ON WE INCREASED IT TO 30 BY AUGUST AND WE MADE THE FINAL STAGES IN MIDJANUARY SAID DR CHOPPIN GRAHAM HARRISON THE INSTITUTE'S CHIEF INVESTMENT OFFICER GIVES MUCH OF THE CREDIT FOR THE PORTFOLIO'S TOTAL RETURN OF 157 TO ITS EQUITY COMPONENT AND PARTICULARLY TO ITS INTERNATIONAL HOLDINGS AT YEAR END THE FUND THEN VALUED AT 764 BILLION WAS 543 INVESTED IN EQUITIES INCLUDING 665 MILLION IN GM STOCK WITH MOST OF THE BALANCE IN FIXEDINCOME SECURITIES OF THE EQUITIES SOME 25 WERE FOREIGN WITH GOOD VISIBILITY AND EXPOSURE TO MEXICO AND VERY LITTLE EXPOSURE TO JAPAN HE SAID GM SHARES DOMINATED THE PORTFOLIO IN 1985 WHEN MR HARRISON JOINED THE INSTITUTE AFTER RUNNING THE FORMER US STEEL'S PENSION FUND AT THE TIME THE INSTITUTE RECEIVED 27 BILLION IN CASH AND 100 MILLION SHARES OF GM'S NEWLY CREATED CLASS H COMMON STOCK FOR THE SALE OF HUGHES AIRCRAFT UNDER TERMS OF A COMPLEX 1989 RESTRUCTURING OF THE HUGHES AIRCRAFT SALE THE INSTITUTE CURRENTLY HOLDS 15 MILLION CLASS H SHARES UNDER A 30ASHARE PUT OPTION THAT EXPIRES IN MARCH OF 1995 A PUT OPTION ENABLES A HOLDER TO SELL A SECURITY AT A SPECIFIED PRICE USUALLY WITHIN A LIMITED PERIOD THE INSTITUTE STANDS TO RECEIVE 450 MILLION IF IT SELLS THE STOCK TO GM IN 1995 AT 30 A SHARE BUT THE SHARES WERE TRADING YESTERDAY AT 37875 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE INSTITUTE COULD MAKE MORE ON THE SHARES IF GM DECIDES TO RECLAIM THE STOCK UNDER A 3750ASHARE CALL OPTION THE AUTO MAKER HOLDS ON THE SHARES WHICH ENABLES THE OPTION HOLDER TO BUY SHARES AT A SPECIFIED PRICE SUCH A MOVE COULD GIVE THE INSTITUTE 112 MILLION MORE THAT'S A CONCEIVABLE WINDFALL THAT'S WAITING OUT THERE SAID MR HARRISON 9402110139 940211 ALL NIPPON AIRWAYS EXPECTS FLAT EARNINGS FOR THIS FISCAL YEAR TOKYO ALL NIPPON AIRWAYS JAPAN'S SECONDLARGEST AIRLINE SAID IT EXPECTS FLAT EARNINGS FOR THE FISCAL YEAR ENDING MARCH 31 BUT SEES A MODEST RECOVERY NEXT YEAR THE TOTAL NUMBER OF JAPANESE TRAVELING ABROAD IS INCREASING SAID KOJI YAMASHITA VICE PRESIDENT OF INTERNATIONAL PASSENGER MARKETING AND SALES AT ALL NIPPON BUT PASSENGERS ARE SPENDING LESS ON AIR FARES BY CHOOSING CHEAP TICKETS WHENEVER POSSIBLE MR YAMASHITA SAID IN AN INTERVIEW THE MOVE TOWARD DISCOUNT AIR FARES PROBABLY WILL CONTINUE EVEN IF JAPAN'S SLUMPING ECONOMY RECOVERS BECAUSE THE DOWNTURN HAS BROUGHT ON A WAVE OF THRIFTINESS IN JAPAN THAT WON'T DISAPPEAR HE SAID ANA WHICH ANNOUNCED A RESTRUCTURING PROGRAM IN AN EFFORT TO TRIM COSTS EARLIER THIS WEEK WILL ALSO TRY TO BOOST SALES THROUGH MARKETING EFFORTS MR YAMASHITA SAID OUR BASIC STRATEGY IS TO ALIGN WITH OTHER CARRIERS HE SAID ANA IS NEGOTIATING WITH OTHER INTERNATIONAL AIRLINES TO COOPERATE IN FREQUENT FLYER MILEAGECREDIT PROGRAMS AND EXPECTS TO ANNOUNCE NEW TIEUPS IN THE NEAR FUTURE MR YAMASHITA SAID FOR THE FISCAL YEAR THAT ENDED MARCH 31 1993 ANA'S PRETAX PROFIT FELL 34 TO 133 BILLION YEN 1228 MILLION FROM 201 BILLION YEN THE YEAR EARLIER 9402110138 940211 RETAILING SIX REASONS WOMEN AREN'T BUYING AS MANY CLOTHES BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL EVERYBODY KNOWS WOMEN LOVE CLOTHES OR DO THEY RETAILERS AREN'T QUITE SURE WHY WOMEN DIDN'T BUY CLOTHES WITH THEIR USUAL GUSTO LAST YEAR ONE EASY BUT UNCONVINCING ANSWER IS LOWER INTEREST RATES WHICH MAKE DURABLES LIKE FURNITURE AND CARS MORE AFFORDABLE BUT THAT ALONE CAN'T EXPLAIN IT SAYS CARL PRIESTLAND CHIEF ECONOMIST FOR THE AMERICAN APPAREL MANUFACTURERS ASSOCIATION NOR CAN WEATHER ANOTHER POPULAR EXPLANATION WEATHER IS ALWAYS UNPREDICTABLE THE TRUTH IS SEVERAL TRENDS CONVERGED LAST YEAR THAT MADE WOMEN RETHINK THEIR RELATIONSHIP TO CLOTHES HERE ARE SIX OF THEM CLOTHES DEPARTMENTS EXPECIALLY IN BIG STORES LOOK LIKE NUNNERIES I GO IN ALL READY TO BUY AND I SEE A BUNCH OF BLACK AND NEUTRALS COMPLAINS JUDITH LANGER A CONSUMER MARKET RESEARCHER IN NEW YORK MARVIN GOLDSTEIN PRESIDENT OF DAYTON HUDSON CORP'S DEPARTMENT STORE DIVISION SAYS WHEN TIMES ARE TOUGH APPAREL MAKERS WOULD RATHER NOT GAMBLE ON COLOR COLORS CAN BE FADDISH REMEMBER NEON BUT BLACK ENDURES APPAREL MAKERS ON THE OTHER HAND BLAME THE STORE BUYERS I'M SCREAMING AT THE DESIGNERS WE NEED COLOR WE NEED COLOR' BUT THEN THE STORE KEEPERS END UP SELECTING OUR SOPHISTICATED BLACKS AND NEUTRALS SAYS HOWARD BLOOM CHIEF EXECUTIVE OF CHETTA B INC A WOMEN'S APPAREL MAKER SUSAN GARFIELD LAST YEAR BOUGHT TWO BLACK SWEATERS A BLACK TURTLENECK AND BLACK WOOL PANTS BLACK MAKES A BODY LOOK SLIMMER AND IT'S ALWAYS SAFE SAYS MS GARFIELD A BOOKSTORE EMPLOYEE IN CAMBRIDGE MASS I DON'T HAVE TO DEAL WITH MATCHING COLORS WENDY LIEBMANN PRESIDENT OF WSL MARKETING TELLS OF A BARNEYS NEW YORK SHOPPER WHO ASKED A SALESPERSON WHY THE STORE ONLY CARRIED BLACK CLOTHES WE DON'T CARRY ONLY BLACK THE SALESPERSON REPLIED WE ALSO HAVE GRAY RETAILERS MUST PREDICT WHAT SKIRT LENGTHS WILL BE FASHIONABLE AT LEAST SIX MONTHS BEFORE THE CLOTHES WILL ARRIVE IN STORES THE RETAILERS CHOSE LONG AND WRONG FOR '93 APPAREL MAKERS CONSTANTLY EXPERIMENT WITH SKIRT LENGTHS HOPING TO START A NEW TREND I THINK IT WAS AN EFFORT BY SOME DESIGNERS TO KICK START THE BUSINESS A LITTLE BIT SPECULATES MR BLOOM OF CHETTA B ALAN MILLSTEIN OF FASHION NETWORK REPORT SAYS DESIGNERS ALREADY HAD HIKED UP HEMLINES SO HIGH THERE WAS NOWHERE LEFT TO GO BUT DOWN BUT DESIGNERS' RUNWAYS MAGAZINES AND TELEVISION SHOWED SHORTER SKIRTS AND WITH HIGHFASHION COMMENTARY REACHING THE MAINSTREAM BY WAY OF ELSA KLENSCH OF CNN AND CINDY CRAWFORD OF MTV EVEN THE FASHION HINTERLANDS CAN'T BE FOOLED JANET DIEDERICHS A CHICAGO PUBLIC RELATIONS CONSULTANT CALLS THE LONG LOOK TOO DUMPY LOOKING THEY AGE THE WEARER SHORT SKIRTS HAVE THE VIRTUE OF SHOWCASING THE LEGS WHICH HOLD UP TO THE CHALLENGES OF AGING BETTER THAN SOME OTHER PARTS OF THE BODY RUTH RUBINSTEIN A NEW YORK FASHION SOCIOLOGIST SAYS LONG SKIRTS A MORE RESTRICTIVE LOOK POPULAR IN THE 1930S WORK BETTER IF WOMEN ARE DEPRESSED ABOUT THE ECONOMY STYLES TEND TO REFLECT CONSUMER CONFIDENCE IN 1980 NANCY REAGAN WORE A RED BODYHUGGING DRESS TO THE INAUGURATION UNLESS YOU'RE MAKING SHROUDS SAYS MR MILLSTEIN SEX APPEAL IS A PAYING PROPOSITION WHO ARE THESE PEOPLE CATERING TO WONDERS SHEILA M ENTENMAN CITING THE BILLOWY ROMANTIC BLOUSES AND BABYDOLL DRESSES RETAILERS FLOGGED LAST YEAR I'M SORRY BUT THOSE JUST WON'T WORK ON THE JOB SHE SAYS MS ENTENMAN A CHICAGO LAWYER LAUGHS ABOUT SKINTIGHT BODY SUITS OFTEN ADVERTISED WITH JEANS AND SKIRTS DITTO FOR 1993'S GRUNGE BELLBOTTOMS PLATFORM SHOES AND VELVET EVERYTHING WORKING WOMEN DON'T WANT PIRATESTYLE CUFFS THAT GET CAUGHT IN FAX MACHINES AND FILE CABINETS CONSUMERS TODAY WANT WELLDESIGNED TIMELY NOT GIMMICKY GOOD VALUE CLOTHING THEY CAN COMFORTABLY WEAR TO WORK TONE DOWN FOR THE WEEKEND AND TONE UP FOR AN EVENING OUT SAYS MS LIEBMANN OF WSL MARKETING CONSUMERS' CLOSETS ARE FULL OF BASIC GAPLIKE CLOTHING CITING A LACK OF INVENTIVE STYLES FOR ITS BUYERS TO CHOOSE FROM MERCANTILE STORES CO A FAIRFIELD OHIO DEPARTMENT STORE CHAIN SAYS THERE'S NO REALLY COMPELLING REASON FOR CONSUMERS TO UPDATE THEIR FASHION WARDROBE MS DIEDERICHS WHO SHOPS THE SALES ALONG CHICAGO'S MICHIGAN AVENUE SAYS STYLES AND BRANDS ARE SO REPETITIVE THAT IF SHE DOESN'T FIND A GOOD PRICE ON A DRESS AT SAY NEIMAN MARCUS SHE TRIES SAKS FIFTH AVENUE ACROSS THE STREET DESIGNERS AND APPAREL MAKERS ARGUE IT'S NOT THE DESIGNERS WHO ARE TOO CONSERVATIVE BUT THE RETAILERS GONE ARE THE MERCHANTS WITH AN EYE FOR STYLE THEY SAY INSTEAD EFFICIENT BUYERS BRISKLY REPLENISH THE PROVEN CROP OF STYLES THAT'S FINE FOR JOCKEY SHORTS BUT NOT FOR THE FASHION BUSINESS SAYS BERNARD HOLTZMAN PRESIDENT AND CHIEF DESIGNER FOR WOMEN'S WEAR MAKER HARVE BENARD LTD RETAILERS ARE DECRYING SOMETHING THEY FOSTERED THEMSELVES CAROL FARMER A BOCA RATON FLA CONSULTANT CALLS THE PHENOMENON CLOSETBASED CYNICISM IN STORES SHOPPERS KEEP SEEING VERSIONS OF CLOTHES THEY ALREADY HAVE AND SINCE SO MANY DIFFERENT HEMLINES AND STYLES ARE ACCEPTABLE NOW CLOTHES CAN BE KEPT AND RECYCLED PROFESSIONAL WOMEN HAVE COME A LONG WAY BABY THE WOMEN WHO A DECADE AGO FELT THEY HAD TO BUY EXPENSIVE POWER SUITS TO GET AHEAD NOW REALIZE THEY DON'T HAVE TO LOOK A CERTAIN PART TO CLIMB THE LADDER WOMEN ARE REALLY PAST THE PROVEIT STAGE SAYS MS LANGER THE MARKET RESEARCHER WOMEN ARE TRYING TO GO TO THE OUTER EDGE OF INFORMALITY WITHOUT FREAKING PEOPLE OUT SAYS MS FARMER THAT KIND OF CLOTHING ISN'T ALWAYS EASY TO FIND THIS IS THE HARDEST YEAR I'VE EVER HAD SHOPPING SAYS JAN MCLAUGHLIN A PERSONAL SHOPPER IN SEATTLE WHOSE CLIENTS ARE BABYBOOMER PROFESSIONALS WHO WANT PANTS AND EASY JACKETS WITH SOFT BLOUSES OR SWEATERS UNDERNEATH DESIGNER CAROLE LITTLE'S BEST SELLERS LAST YEAR FELL INTO THIS SOCALLED SOFT CAREER DRESSING GENRE AS BABY BOOMERS AGE BUY HOMES AND HAVE CHILDREN TRENDY CLOTHING ISN'T QUITE AS IMPORTANT TO THEM WE'RE GETTING REAL AS WE GET TO MIDDLEAGE WE DON'T LOOK AS GREAT AS WE USED TO WHY PLAY A GAME YOU CAN'T WIN SAYS MS FARMER CLOTHING TOTALLY DROPPED OFF MY LIST OF THINGS I LIKE TO SPEND MONEY ON I'D RATHER BUY A RUG SO I CAN LOOK AT IT EVERYDAY MS ENTENMAN THE ATTORNEY PAID 120 FOR A BEAUTIFUL BLACK AND WHITE HOUNDSTOOTH SWEATER ONLY TO HAVE HER TODDLER'S PINK EAR MEDICINE LEAK ALL OVER IT YOU DON'T WANT TO BE WEARING A SILK BLOUSE WHEN YOUR THREEYEAROLD COMES AT YOU WITH PEANUT BUTTER AND JELLY ON HER FINGERS SHE SAYS 9402110136 940211 BUSINESS BRIEF HASBRO INC TOY MAKER POSTS 8 RISE IN NET FOR FOURTH QUARTER HASBRO INC SAID FOURTHQUARTER NET INCOME ROSE 8 EVEN AFTER A RESTRUCTURING CHARGE ON A 12 REVENUE INCREASE THE NATION'S BIGGEST TOY MAKER WHICH IS BASED IN PAWTUCKET RI SAID NET INCOME ROSE TO 707 MILLION OR 78 CENTS A SHARE FROM 656 MILLION OR 73 CENTS A SHARE NET IN THE LATEST PERIOD INCLUDED A PREVIOUSLY REPORTED CHARGE OF 155 MILLION RELATED TO COSTS OF CLOSING A FACILITY IN THE NETHERLANDS AND LAYING OFF 162 EMPLOYEES THERE THE COMPANY SAID PROFIT WOULD HAVE RISEN 22 WITHOUT THE CHARGE REVENUE ROSE TO 9322 MILLION FROM 8313 MILLION IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY HASBRO SHARES ROSE 25 CENTS TO 34125 9402110135 940211 WHO'S NEWS AMEX NAMES BOSTON FED'S SYRON ITS NEW CHAIRMAN NEW YORK THE AMERICAN STOCK EXCHANGE AS EXPECTED NAMED RICHARD F SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT AS ITS NEW CHAIRMAN MR SYRON 50 YEARS OLD SUCCEEDS JAMES R JONES WHO LEFT THE EXCHANGE LAST SUMMER TO BECOME US AMBASSADOR TO MEXICO MR SYRON WILL ASSUME OFFICE APRIL 1 ACCORDING TO PEOPLE CLOSE TO THE SEARCH MR SYRON WILL RECEIVE CASH COMPENSATION OF ABOUT 1 MILLION MR SYRON'S SALARY AT THE FEDERAL RESERVE BANK OF BOSTON WHERE HE HAS BEEN PRESIDENT SINCE JANUARY 1989 IS 177600 MR SYRON SAID ONE OF HIS GOALS AS CHAIRMAN WILL BE TO DO A BETTER JOB OF INFORMING INVESTORS AND COMPANIES OF THE ADVANTAGE OF AN AUCTION MARKET RATHER THAN A DEALER MARKET SUCH AS THE NASDAQ STOCK MARKET IN RECENT YEARS AMEX HAS BEEN HURT BECAUSE MANY OF THE SMALL AND MEDIUMSIZE COMPANIES THAT ARE POTENTIAL CANDIDATES FOR LISTING ON THE AMERICAN EXCHANGE INSTEAD HAVE GONE TO NASDAQ MR SYRON SAID HE THINKS THE DERIVATIVES BUSINESS IS A NICHE THAT THE EXCHANGE CAN EXPAND UPON DERIVATIVES ARE HYBRID SECURITIES BASED ON AN UNDERLYING STOCK INDEX OR COMMODITY IN WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE FED WILL MISS ESPECIALLY HIS THOUGHTFUL INSIGHTS TO MONETARY POLICY A NEW PRESIDENT OF THE BOSTON FED WILL BE CHOSEN BY THE BANK'S PRIVATESECTOR DIRECTORS SUBJECT TO APPROVAL OF THE FED BOARD 9402110134 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD GETTING PERSONAL THE NEWTON HAS GIVEN PERSONAL DIGITAL ASSISTANTS A BAD NAME BUT DON'T BE FOOLED PDAS WILL SOON REVOLUTIONIZE THE WAY PEOPLE COMMUNICATE BY G CHRISTIAN HILL AND JIM CARLTON THE MUCHHERALDED AGE OF PERSONAL DIGITAL COMMUNICATING HAS GOTTEN OFF TO A ROCKY START BUT JUST WAIT THE CURRENT PROBLEM CAN BE SUMMED UP IN ONE WORD NEWTON APPLE COMPUTER INC RAISED EXPECTATIONS BY HEAVILY PROMOTING ITS NEWTON MESSAGEPAD AS THE FIRST PERSONAL DIGITAL ASSISTANT A HANDHELD WIRELESS COMMUNICATOR THAT COULD LINK PERSONAL FILES ADDRESSES AND LISTS AND EVEN CONVERT HANDWRITING TO DIGITAL TYPE BUT WHEN THE PRODUCT ARRIVED IN STORES IT COULDN'T RECOGNIZE HANDWRITING PARTICULARLY WELL COULDN'T COMMUNICATE AT ALL WITHOUT LOTS OF COSTLY ADDITIONAL GEAR AND WAS WIDELY RIDICULED THE NEWTON SAYS MICROSOFT CORP CHAIRMAN WILLIAM H GATES MAY HAVE SET THE CATEGORY BACK A COUPLE OF YEARS TO BE FAIR THE NEWTON SHOULDN'T GET ALL THE BLAME IT WAS FOLLOWED BY OTHER OSTENSIBLE PDAS THE ZOOMER A PERSONAL ORGANIZER FROM CASIO COMPUTER CO AND TANDY CORP THAT COMMUNICATES MAINLY WITH A DESIGNATED DESKTOP COMPUTER AND BELLSOUTH CORP'S SIMON A CELLULAR PHONE THAT CAN STORE FILES AS WELL AS TRY TO SEND FAXES AND ELECTRONIC MAIL OVER A CHANCY ANALOG TRANSMISSION SYSTEM SO FAR THESE PDAS ARE MORE FRUSTRATING TO USE AND MORE TIMECONSUMING THAN WHAT THEY PURPORT TO REPLACE SAYS ALAN REITER EDITOR OF MOBILE DATA REPORT A NEWSLETTER IN ALEXANDRIA VA THEY ARE BETA TEST PRODUCTS BEING SOLD AS COMMERCIAL PRODUCTS HERSCHEL SHOSTECK A CELLULARPHONE ANALYST IN SILVER SPRING MD SAYS PDAS ARE ABOUT AS USEFUL AS MAGNETS ON REFRIGERATOR DOORS WHICH CAN HOLD SCHEDULES OF MEETINGS PHONE NUMBERS AND PERSONAL CALENDARS UNTIL PDAS OFFER THE SAME PRICES AND ROBUSTNESS AS KITCHEN MAGNETS THERE'S A LIMITED MARKET BUT DON'T BE MISLED BY THE EARLY BUNGLING DESPITE THE BAD START AND WIDESPREAD SKEPTICISM PDAS ARE STILL LIKELY SOMETIME IN THE NOTTOODISTANT FUTURE TO TRANSFORM THE WAY MANY PEOPLE COMMUNICATE PERHAPS RIVALING OR EXCEEDING CELLULAR PHONES OR PERSONAL COMPUTERS IN THEIR IMPACT THAT'S BECAUSE WITHIN THREE TO FIVE YEARS PDAS WILL BE FINETUNED TO AUTOMATE INTEGRATE FILTRATE AND LOCATE ALL KINDS OF VALUABLE INFORMATION FOR PDAS TO BECOME A COMPELLING MASSMARKET PRODUCT THREE THINGS MUST HAPPEN WIRELESS NETWORKS MUST BECOME UBIQUITOUS AND RELIABLE LOTS OF USEFUL SERVICES MUST BE AVAILABLE OVER THOSE NETWORKS AND THE DEVICES MUST OFFER MANY USEFUL FUNCTIONS IT'S THE COMBINATION THAT WILL MAKE PDAS IRRESISTIBLE FOR SOME PEOPLE WHILE PCS AND OTHER DEVICES MAY BE ABLE TO DUPLICATE THE SERVICES AND FUNCTIONS PDAS WILL DELIVER THEM ALONG WITH POWERFUL MESSAGING AND COMMUNICATING CAPABILITY WHEREVER AND WHENEVER A USER WANTS THE FOUNDATION FOR MEETING THOSE THREE CONDITIONS HAS ALREADY BEEN LAID TWO COMPANIES ARDIS A JOINT VENTURE OF MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP AND RAM MOBILE DATA OWNED BY BELLSOUTH CORP OF ATLANTA AND RAM BROADCASTING CORP OF WOODBRIDGE NJ ALREADY OFFER WIRELESS NETWORKS BUT ONLY FOR DATA AND ONLY IN METROPOLITAN AREAS MCCAW CELLULAR COMMUNICATIONS INC OF KIRKLAND WASH PLANS A MORE COMPREHENSIVE WIRELESS DATA NETWORK CALLED CELLULAR DIGITAL PACKET DATA OR CDPD THAT WILL OVERLAP WITH ITS EXISTING ANALOG CELLULAR SYSTEM CDPD USERS WITH DUALMODE CELLULAR PHONES OR PDAS COULD HANDLE BOTH VOICE AND DATA WITHOUT THE TRANSMISSION ERRORS AND BREAKDOWNS COMMON IN ANALOG SYSTEMS INCLUDING CURRENT CELLULAR NETWORKS BARRING PROBLEMS CDPD COULD BE AVAILABLE NATIONWIDE IN TWO TO THREE YEARS IF MCCAW'S EFFORTS FLOUNDER A LACK OF AGREEMENT ON STANDARDS COULD FORCE PDA USERS TO WAIT ANOTHER YEAR OR TWO FOR WIDESPREAD INSTALLATION OF SOCALLED PERSONAL COMMUNICATIONS SERVICES CAPABLE OF CARRYING BOTH VOICE AND DATA OTHER COMPANIES ARE AT WORK TO MAKE PDAS EASIER TO USE AND MORE FUNCTIONAL GENERAL MAGIC INC A CONSORTIUM WHOSE MEMBERS INCLUDE APPLE AND AMERICAN TELEPHONE & TELEGRAPH CO LAST MONTH INTRODUCED A POWERFUL PROGRAM CALLED MAGIC CAP WHICH SIMPLIFIES MANY COMMUNICATIONS TASKS DESIGNED TO BE AN OPERATING SYSTEM FOR PDAS AND LATER AN APPLICATION PROGRAM FOR PCS MAGIC CAP COULD BE TO PDAS WHAT THE MACINTOSH OPERATING SYSTEM WAS TO PCS A BETTER SIMPLER WAY TO DO THINGS THAT BECOMES THE INDUSTRY MODEL AT THE SAME TIME AT&T AND GENERAL MAGIC ANNOUNCED PLANS TO INTRODUCE A SERVICE THIS SUMMER CALLED PERSONALINK WHICH MAY ADD MORE VALUE TO PDAS THAN ANYTHING ELSE IT WILL CREATE AN INTELLIGENT NETWORK SERVICE ALLOWING A PDA USER TO LAUNCH ELECTRONIC AGENTS POWERFUL WAYS TO FILTER AND FIND INFORMATION FROM EXTERNAL NETWORKS EVEN WHILE YOU'RE NOT ONLINE MOTOROLA IS EXPECTED TO BE THE FIRST TO MARKET WITH A WIRELESS PDA USING MAGIC CAP AND CAPABLE OF USING PERSONALINK THE SCHAUMBURG ILL COMPANY PLANS TO BEGIN SELLING IT SOMETIME LATE IN THE FIRST HALF OF THIS YEAR JAPAN'S SONY CORP WILL OFFER A SIMILAR PDA AT ABOUT THE SAME TIME BUT ITS DEVICE MAY HAVE ONLY A WIRED TELEPHONE LINK PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THE PANASONIC DIVISION OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO ARE EXPECTED TO INTRODUCE SIMILAR PRODUCTS LATE THIS YEAR OR EARLY IN 1995 ALL FOUR COMPANIES ARE GENERAL MAGIC BACKERS IT'S DIFFICULT EVEN FOR WIRELESS SPECIALISTS TO UNDERSTAND PRECISELY HOW A NEW KIND OF PERSONAL DIGITAL COMMUNICATING WILL EVOLVE FROM THESE DEVELOPMENTS OR HOW APPEALING IT WILL PROVE HOW MANY PEOPLE USING CELLULAR PHONES NOW WERE CHOMPING AT THE BIT TO USE THEM IN 1982 MR REITER ASKS HOW MANY PEOPLE RIDING RAILWAYS IN THE 1800S WERE DEMANDING AIRPLANE TICKETS THE INTERESTING THING ABOUT THIS MARKET IS THAT EVEN SMART PEOPLE DON'T KNOW WHAT IS GOING TO HAPPEN MUCH OF THE UNCERTAINTY CENTERS ON INTELLIGENT NETWORKING A TOOL UNLIKE ANYTHING AVAILABLE TO NETWORK USERS TODAY AT&T'S PERSONALINK SERVICE IS BASED ON COMMUNICATIONS SOFTWARE DEVELOPED BY GENERAL MAGIC CALLED TELESCRIPT IF A PDA WITH TELESCRIPT SOFTWARE IS CONNECTED THROUGH PERSONALINK TO A SERVICE PROVIDER WITH TELESCRIPT THE PDA USER WILL BE ABLE TO REMOTELY PROGRAM THE PROVIDER'S COMPUTER TO DO IMPORTANT THINGS THAT SAVE THE USER VALUABLE TIME OR TO HELP LOCATE THINGS AND SERVICES THAT MAY BE HARD TO FIND STARTING THIS SUMMER PEOPLE WILL BE ABLE TO USE PERSONALINK TO FILTER COMMUNICATIONS BETWEEN TELESCRIPTEQUIPPED DEVICES AN IMPORTANT FUNCTION IN AN ERA OF INFORMATION OVERKILL BY CLICKING A MOUSE OR TAPPING A STYLUS ON SOME SIMPLE RULES IN A FILE USERS CAN INSTRUCT THE NETWORK TO ASSIGN PRIORITIES OR ATTRIBUTES TO MESSAGES BOTH COMING AND GOING TELL PERSONALINK TO FAX AN EXPECTED INCOMING MESSAGE TO 18 COLLEAGUES AROUND THE WORLD HAVE IT BEEP THE PDA IF THE BOSS OR BABYSITTER SENDS A MESSAGE BUT DUMP MESSAGES FROM AN EXHUSBAND IN A TRASH CAN THE MORE FUTURISTIC PART OF INTELLIGENT NETWORKING INVOLVES ELECTRONIC AGENTS DOING REMOTE SEARCHING MATCHING AND COMPILING AT THE USER'S BIDDING TO OFFER A HYPOTHETICAL EXAMPLE INVOLVING TODAY'S NETWORKS IT WOULD BE LIKE DISPATCHING SOMEONE INTO THE PRODIGY ONLINE SERVICE TO COLLECT TRAVEL INFORMATION YOU REQUESTED SAY ABOUT TRAVEL TO HAWAII WHILE YOU DO SOMETHING ELSE ON YOUR PDA OR EVEN WHILE IT'S TURNED OFF OVER TIME AIRLINES RESTAURANTS AND OTHER SERVICE PROVIDERS ARE EXPECTED TO SIGN UP WITH NETWORKS LIKE PERSONALINK TO OBTAIN A SORT OF ELECTRONIC 800NUMBER ACCESS TO CONSUMERS IF ENOUGH SIGN UP CONSUMERS AND BUSINESSES WILL BE ABLE TO FIND EACH OTHER IN A KIND OF NATIONWIDE ELECTRONIC MARKETPLACE A COMMERCIAL INTERNET MICHAEL P SCHULHOF CHIEF EXECUTIVE OF SONY CORP OF AMERICA ENVISIONS THE DAY WHEN A CONSUMER HEARING A SONG HE LIKES ON HIS PDA WILL BE ABLE TO USE THE DEVICE TO IDENTIFY THE ALBUM BY A DIGITAL CODE CONTAINED IN THE BROADCAST SIGNAL HE COULD THEN TAP AN ICON SENDING A WIRELESS ORDER TO SONY THROUGH PERSONALINK SONY WOULD SHIP HIM THE CD BILLED TO A PREVIOUSLY ENTERED VISA ACCOUNT NUMBER RICH MILLER ONE OF TELESCRIPT'S CODEVELOPERS AT GENERAL MAGIC SAYS INTELLIGENT NETWORKING WILL EVOLVE TO INCLUDE ELECTRONIC REQUESTS FOR PROPOSALS SENT BY POTENTIAL BUYERS TO POTENTIAL SELLERS PUT OUT AN RFP FOR A 1955 THUNDERBIRD THE ELECTRONIC AGENT NOT YOU WILL SEARCH NETWORKS FOR ALL POSTINGS OF SUCH CARS AND DOWNLOAD LISTS PRICES AND PHONE NUMBERS INTO THE PDA OR BEEP YOU IF IT FINDS ONE THAT MEETS YOUR CRITERIA SAY IN GOOD CONDITION IN YOUR REGION FOR LESS THAN 9000 PUT OUT AN RFP FOR A TWOWEEK HAWAIIAN VACATION IN AUGUST AND RANK RESPONSES BY COST OR A VALUE INDEX OF YOUR OWN MAKING OR CREATE A PERSONALITY AGENT THAT LISTS AS MANY INTERESTS AS YOU WANT FLOATING AROUND IN THE ETHER SO THE PDA CAN CONTINUALLY MATCH YOU WITH SELLERS' OFFERINGS THIS AUTOMATION SETS INTELLIGENT NETWORKING APART FROM PREVIOUS EFFORTS AT ELECTRONIC MARKETPLACES SUCH AS VIDEOTEX MR MILLER SAYS THE USER DOESN'T SEARCH HIS OR HER ELECTRONIC AGENT DOES THE SEARCH MECHANISMS NEEDED FOR THIS KIND OF MATCHING ALREADY EXIST IN ADVANCED DATABASE SOFTWARE CONSUMERS WILL BE ABLE TO USE PCS AND INTERACTIVE TVS IN THIS ELECTRONIC MARKETPLACE BUT IF THEY WANT THE POTENTIAL FOR QUICK ACCESS OR QUICK RESPONSE ANYWHERE ANYTIME THEY WILL SEE A NEED FOR PDAS THAT DOESN'T EXIST TODAY THE POWER OF GENERAL MAGIC'S MAGIC CAP SOFTWARE IS THAT IT SIMPLIFIES THE USE OF INTELLIGENT AGENTS SO MUCH EVEN COMPUTER NONUSERS WILL BE ABLE TO EASILY AUTOMATE AND CUSTOMIZE COMMUNICATIONS THE SYSTEM PRESENTS USERS WITH THREE MAIN SCREENS A DESK A HALLWAY TO OTHER ROOMS IN YOUR HOUSE AND A MAIN STREET ALONG WHICH YOU CAN TRAVEL TAPPING OBJECTS ON THE DESK OPENS SOME BASIC FILES SUCH AS YOUR DIRECTORY OF NAMES ADDRESSES AND PHONE NUMBERS TAPPING ROOMS OPENS OTHER FILES SUCH AS A LIBRARY OF NEWS ARTICLES TAPPING BUILDINGS ON MAIN STREET PROVIDES ACCESS TO SERVICES SUCH AS AN AT&T BUILDING THAT ALLOWS YOU TO CUSTOMIZE YOUR MAILBOX AT PERSONALINK OR AN ELECTRONICS STORE THAT LETS YOU TAKE A VIRTUAL TOUR INSIDE SHOPPING FOR ELECTRONIC GEAR BY MORE TAPPING MAGIC CAP IS A NAVIGATION METAPHOR DESIGNED TO REACH BEYOND COMPUTER USERS TO TELEPHONE AND TV USERS SAYS ANDY HERTZFELD ONE OF ITS PRINCIPAL PROGRAMMERS THEY SHOULD BE ABLE TO TAP THEIR INTUITION AS TO HOW IT SHOULD WORK USING THEIR KNOWLEDGE OF THE PHYSICAL UNIVERSE THEY'VE LIVED IN ALL THEIR LIVES SOFTWARE COMPANIES AND SERVICE PROVIDERS WILL OFFER TO SEND FILES TO PLACE THEMSELVES IN YOUR SYSTEM WHEN YOU ACCEPT YOUR MAGIC CAP LANDSCAPE WILL CHANGE TO REFLECT THEIR PRESENCE THE INFORMATION WILL MOVE TO YOU EITHER BY MODEM OR IN THE FORM OF ELECTRONIC CREDITCARDSIZE INSERTS THAT SLIP INTO SLOTS IN YOUR PDA YOU CAN ALSO DOWNLOAD FILES FROM YOUR PERSONAL COMPUTER WITH A CABLE AND SOPHISTICATED PDA USERS CAN USE PROGRAMMING TOOLS TO FASHION THEIR OWN DESK HALLWAY AND MAIN STREET OTHER OPERATING SYSTEMS WILL BE MODIFIED OR CREATED TO TAKE ADVANTAGE OF TELESCRIPT BUT MAGIC CAP 3 1/2 YEARS IN THE MAKING APPEARS TO HAVE A SIGNIFICANT LEAD IN MAKING BOTH PDAS AND NETWORK SERVICES EASIER TO USE IT DOES SO PARTLY BY AUTOMATING THE PROGRAMMING THAT SENDS ELECTRONIC AGENTS INTO NETWORKS TO WORK FOR YOU IF DOW JONES NEWS/RETRIEVAL AN ONLINE SERVICE OWNED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER WERE HOOKED INTO PERSONALINK YOU COULD ENTER YOUR LIBRARY BY TAPPING THE DOOR THEN BY TAPPING IN A MENU OF RULES YOU COULD SEND MESSAGES IN TELESCRIPT ASKING TO BE ALERTED WHEN APPLE'S STOCK DROPS BELOW 20 A SHARE A MUSIC STORE ON MAIN STREET COULD CONTAIN SONY'S NUMBER FOR CDS OR TOWER RECORDS' NUMBER IF TOWER BELONGED TO PERSONALINK YOU COULD SEND AN AGENTMESSENGER TO AWAIT THE ARRIVAL OF THE LATEST PEARL JAM CD AT WHICH TIME THE AGENT WOULD BEEP YOUR PDA THE IN BOX ON YOUR DESK CONTAINS RULES FOR PRIORITIZING MESSAGES TAPPING ON ONE RULE FOR INSTANCE ASSIGNS AN URGENT PRIORITY TO MESSAGES FROM YOUR WIFE ANY OR ALL INCOMING MESSAGES CAN BE AUTOMATICALLY ROUTED TO A FILE CABINET ON YOUR DESK SENDING MESSAGES IS EQUALLY AUTOMATED TAPPING OPEN THE STATIONERY DRAWER AT THE BOTTOM LEFT OF THE DESK PRESENTS A CHOICE OF POSTCARD LETTER URGENT POSTCARD ETC TAPPING ONE PULLS IT OUT OF THE DRAWER WITH A NAME FINDER ON THE SIDE TAP A SCROLLER OR ALPHABETIC TABS TO INDICATE THE RECIPIENT AND TAP AGAIN YOU ARE THEN OFFERED A CHOICE OF THE RECIPIENT'S FAX EMAIL PERSONALINK INTERNET OR TELEPHONE NUMBERS AND ADDRESSES TAP YOUR CHOICE AND THEN EITHER SCRIBBLE A NOTE ON THE SCREEN WITH THE STYLUS OR CALL UP A SCREEN KEYBOARD TO ENTER TYPED TEXT TAP A SELECTION OF STAMPS PRIORITY CODES OR SPECIAL ICONS THAT WILL HELP DETERMINE THE MESSAGE'S IMPORTANCE TO THE OTHER PERSON TAP THE SEND BUTTON AND OFF IT GOES IF YOU ARE SENDING TO ANOTHER MAGIC CAP USER YOU CAN EASILY INCLUDE A BIT OF SONG SUCH AS A FUNERAL DIRGE AND ANIMATED CHARACTERS SUCH AS A MAN RUNNING DOWNHILL PURSUED BY A HUGE BOULDER ONE OF MR HERTZFELD'S FAVORITES EACH MAGIC CAP FUNCTION CAN ALSO BE USED BY SOFTWARE DEVELOPERS TO WRITE PROGRAMS THAT EXPAND ITS USES FOR THE LIBRARY MEAD DATA CENTRAL INC DAYTON OHIO OFFERS DAILY NEWS SUMMARIES AND AMERICA ONLINE INC VIENNA VA ITS OWN MYRIAD SERVICES FOR THE FILE CABINET INTUIT INC OF MENLO PARK CALIF OFFERS POCKET QUICKEN AN ELECTRONIC CHECKBOOK THAT CAN TRACK YOUR SPENDING IN SEVERAL DIFFERENT WAYS THE ICON FOR THAT FUNCTION IS A DOLLAR SIGN WITH WINGS AROUND MIDYEAR A COMPANY CALLED ESHOP INC IN SAN MATEO CALIF WILL BEGIN SHIPPING STORES AND MALLS SOFTWARE THAT WILL ALLOW THEM TO BUILD VIRTUAL VERSIONS OF THEMSELVES ON INTERESTED CONSUMERS' MAIN STREETS THE SOFTWARE WILL PROVIDE MAGIC CAP USERS WITH PICTORIAL TOURS THROUGH THE STORES AND THEIR WARES BEWARE IF YOU TAP IT YOU MAY HAVE BOUGHT IT SOME INDUSTRY WATCHERS STILL SAY PDAS WON'T OFFER ENOUGH UNIQUE FEATURES TO FIND A BROAD MARKET MR SHOSTECK THE CELLULARPHONE ANALYST SAYS MOST PEOPLE WILL STILL PREFER TO COMMUNICATE BY VOICE AND THOSE THAT WON'T WILL STILL HAVE CHEAP WAYS TO SWAP MESSAGES BY PAGER OR COMPUTER WHO NEEDS WIRELESS CONNECTIVITY ANYWAY HE ASKS FOR A WELLORGANIZED BUSINESS OR PROFESSIONAL PERSON THE NEED FOR INSTANT CONNECTIVITY ISN'T SO GREAT THE PERSON WHO REALLY NEEDS IT IS INCOMPETENT BUT MR SHOSTECK AND MANY OTHER EXPERTS ALSO UNDERESTIMATED THE DEMAND FOR CELLULAR PHONES AND PAGERS WHICH WAS DRIVEN BY ADVANCES IN CHIP AND SOFTWARE DESIGNS THAT REDUCED PRICES AND INCREASED PERFORMANCE THE SAME TECHNOLOGICAL FORCES PROBABLY WILL HASTEN THE DAY OF WIRELESS NETWORKS POWERFUL PDAS AND WIRELESS SERVICES MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE ALSO PREDICTS SUBSIDIES FROM NETWORK OPERATORS AND WIRELESS PROVIDERS OF GOODS AND SERVICES WILL SLASH PDA PRICES STARTING THIS YEAR BIS STRATEGIC DECISIONS A NORWELL MASS MARKETRESEARCH GROUP KNOWN FOR CONSERVATIVE DEMAND FORECASTS PREDICTS ANNUAL PDA SALES WILL REACH ABOUT ONE MILLION UNITS IN 1997 ALONG WITH ANOTHER MILLION UNITS FOR OTHER WIRELESS DEVICES SUCH AS SUBNOTEBOOK COMPUTERS THE FIRM ALSO PREDICTS A TOTAL INSTALLED BASE OF ABOUT 75 MILLION WIRELESS DEVICES BY THE END OF 1998 MAGIC CAP AND TELESCRIPT HAVE THE POTENTIAL TO BE THE FOUNDATION FOR THE SPREAD OF PDAS AND INTELLIGENT WIRELESS NETWORKS SAYS RICHARD SIBER SUPERVISOR OF THE BIS STUDIES THOUGH HE SAYS THE TECHNOLOGY IS TOO YOUNG FOR CONFIDENT PREDICTIONS KNOWING THEIR PARTNERS IT CERTAINLY COULD TURN OUT THAT WAY GENERAL MAGIC'S MR PORAT CAUTIONS THAT BUILDING UP EXTENSIVE INTELLIGENT NETWORKS WILL TAKE YEARS BUT HE EXPECTS PDA DEVICES TO TAKE OFF FASTER HE CALLS 1993 THE YEAR OF PDA DEMOS AND 1994 THE YEAR OF THE FIRST SERIOUS PRODUCTS IN 1995 REAL THINGS HAPPEN MR HILL IS THE CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU WHERE MR CARLTON IS A STAFF REPORTER 9402110133 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE DATA DUEL A LOOK AT THE CONTENDERS FIGHTING TO DOMINATE THE BUSINESS OF SENDING DATA OVER WIRELESS NETWORKS BY LESLIE CAULEY NEW YORK RACK UP ONE TOO MANY PARKING TICKETS IN THE BIG APPLE AND THE LONG ARM OF THE LAW AIDED BY HANDHELD WIRELESS TECHNOLOGY MAY REACH OUT AND SNATCH YOUR CAR IN LESS THAN THREE MINUTES FLAT THAT'S ABOUT HOW LONG IT TAKES FOR THE SCOFFLAW POSSE OF THE NEW YORK CITY SHERIFF'S DEPARTMENT TO FIND OUT THAT A CAR OWNER HAS EXCEEDED THE 231 MAXIMUM IN UNPAID FINES SUMMON A TOW TRUCK AND TOW THE CAR AWAY IF YOU WENT IN TO A STORE TO GET BREAD MILK AND EGGS AND THERE WERE THREE PEOPLE IN FRONT OF YOU IN LINE BY THE TIME YOU GOT BACK TO YOUR CAR IT WOULD BE GONE CROWS SHERIFF PHIL CRIMALDI HIS SECRET WEAPON A WIRELESS DATA NETWORK CALLED ARDIS HIS DEPUTIES USED ARDIS TO CHECK OUT 19 MILLION LICENSE PLATES ON CARS PARKED AND DOUBLEPARKED ON NEW YORK CITY STREETS LAST YEAR THAT YIELDED MORE THAN 80 MILLION IN SCOFFLAW PAYMENTS NOT TO MENTION THE TOWING OF SOME 112000 CARS BEFORE THE ARDIS NETWORK WAS INSTALLED IN 1990 THE DEPARTMENT HAD NEVER COLLECTED MUCH MORE THAN 2 MILLION IN FINES FROM ARTFUL TICKETDODGERS CUSTOMERS ARE JUST BEGINNING TO DISCOVER THE ADVANTAGES OF WIRELESS DATA NETWORKS THE RELATIVELY SMALL BUSINESS LAST YEAR IT GENERATED ABOUT 260 MILLION IN REVENUE SERVING 380000 PEOPLE COULD GROW INTO A 2 BILLION MARKET WITH 34 MILLION CUSTOMERS BY 1998 IT WILL BE THE NEXT MAJOR TREND IN THE COMMUNICATIONS MARKET SAYS ROBERT J RICH AN ANALYST AT DATAQUEST INC A SAN JOSE CALIF MARKETRESEARCH CONCERN SIGNIFICANT TECHNOLOGICAL AND COMPETITIVE HURDLES HOWEVER WILL HAVE TO BE CLEARED BEFORE WIRELESS DATA NETWORKS CAN FULFILL THAT BULLISH FORECAST TODAY SOME 85 OF CUSTOMERS USE THE MOST COSTLY AND LEAST EFFICIENT NETWORK FOR SENDING DATA INTO THE ETHER THE REGULAR CELLULARPHONE SYSTEM IT IS SLOW AND THE COST PER MINUTE IS HIGH THE DATA ARE OFTEN SCRAMBLED AND LOST IN THE HISS AND CRACKLE OF TRANSMISSION FOR CONSUMERS THOUGH THE REGULAR CELLULARPHONE SYSTEM IS STILL A LOT EASIER TO USE THAN THE ALTERNATIVES YOU DON'T NEED SPECIAL EQUIPMENT OR SOFTWARE AND YOU CAN REACH A FAR GREATER NUMBER OF PEOPLE SO THE QUESTION REMAINS WHO WILL CONTROL THE FUTURE RIGHT NOW TWO MAJOR PLAYERS ARDIS AND RAM MOBILE DATA ARE SCRAPPING FOR CUSTOMERS BUT ADD TO THE BATTLE A THIRD RIVAL THE REGULAR CELLULAR PROVIDERS THEMSELVES WHICH ARE PUTTING TOGETHER AN ALLDIGITAL DATA APPROACH THAT MAY ELIMINATE TRANSMISSION GLITCHES AND CUT COSTS BY SPEEDING UP TRANSMISSION THE NEW METHOD KNOWN AS CDPD FOR CELLULAR DIGITAL PACKET DATA COULD TURN ARDIS AND RAM INTO ALSORANS IF IT CAN TAKE HOLD QUICKLY ENOUGH FIRST THOUGH IT MUST OVERCOME THE DAUNTING OBSTACLE OF GETTING 250 HARDWARE AND SOFTWARE COMPANIES TO SUPPORT IT IN A UNIFORM WAY HERE'S A LOOK AT THE THREE CONTENDERS ARDIS WITH 40000 CUSTOMERS AT ABOUT 40 COMPANIES HAS A PAIR OF DEEP POCKETS IT IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP NEW YORK AND MOTOROLA INC SCHAUMBURG ILL BUT ITS NETWORKS ARE PRIMARILY SEPARATE PRIVATE SYSTEMS THAT SERVE THE INDIVIDUALS WITHIN A PARTICULAR COMPANY INSTALLING THEM REQUIRES EXPENSIVE CUSTOMIZED SOFTWARE SOME COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND RADIOMAIL CORP SAN MATEO CALIF OFFER SERVICES THAT USE ARDIS AND RAM TO CARRY WIRELESS MESSAGES AND AIM TO SIMPLIFY THE WHOLE PROCESS THAT DRAWBACK OWES TO ARDIS'S ORIGINS IT WAS BUILT BY MOTOROLA IN THE EARLY 1980S TO LET IBM'S SERVICE TECHNICIANS KEEP IN TOUCH WITH HOME OFFICES WHILE TENDING TO CUSTOMERS' MAINFRAME COMPUTERS IT BECAME A JOINT VENTURE IN 1990 TO WOO OTHER COMPANIES WITH LARGE FIELD STAFFS TECHNICALLY ARDIS BASED IN LINCOLNSHIRE ILL OFFERS SERVICES IN 400 METROPOLITAN AREAS ENCOMPASSING MORE THAN 10000 CITIES REACHING 90 OF THE NATION'S BUSINESS MARKETS BUT ONLY ABOUT 40 OF THE GEOGRAPHIC US WHEN USERS ARE IN THE RURAL PATCHES THAT ARDIS CAN'T REACH THEY MUST USE A REGULAR PHONE TO DIAL INTO THE SYSTEM THIS DIALUP PATCH THEORETICALLY LETS ARDIS COVER EVEN REMOTE POINTS INCLUDING DEATH VALLEY PROVIDING OF COURSE YOU CAN FIND A PAY PHONE LIKE ALL WIRELESS NETWORKS ARDIS RELIES ON GOOD OLDFASHIONED WIRELINES FOR MUCH OF ITS REACH ITS 1300 BASE STATIONS BASICALLY ANTENNAS ATOP BUILDINGS HANDLE TWOWAY RADIOFREQUENCY SIGNALS AND LINK THEM WITH A NATIONWIDE WIRED NETWORK RUN BY AT&T FOR THE NEW YORK CITY SHERIFF THE ARDIS SETUP LETS DEPUTIES USE HANDHELD GADGETS ABOUT THE SIZE OF A VCR CASSETTE TO CHECK LICENSE PLATES ALMOST INSTANTLY IN THE OLD DAYS BEFORE 1990 THE DEPUTIES HAD TO PORE OVER REAMS OF COMPUTERIZED PRINTOUTS LISTING CARS WITH UNPAID PARKING TICKETS THEY WERE CALLED HOT SHEETS BUT THE LISTINGS WERE AT LEAST 30 DAYS OLD BEFORE TOWING A CAR DEPUTIES HAD TO FIND A PAY PHONE NO EASY TASK IN NEW YORK AND CALL HEADQUARTERS TO MAKE SURE THE TICKETS WERE STILL OUTSTANDING ABOUT A THIRD OF THE TIME OFFENDING CARS WERE GONE BY THE TIME DEPUTIES GOT BACK TO THEIR CRUISERS SHERIFF CRIMALDI SAYS NOW WHEN A DEPUTY PUNCHES IN A TAG NUMBER THE MESSAGE IS BROKEN DOWN INTO AN ELECTRONIC PACKET TO AVOID FADING AND DISTORTION IT IS BEAMED TO THE NEAREST ARDIS RADIO ANTENNA WHICH TRANSMITS IT OVER A HIGHSPEED TELEPHONE LINE NEXT STOP THE ARDIS MESSAGE SWITCH A COMPUTER IN CHICAGO WHICH HANDS IT OFF TO A TELEPHONE LINE ROUTED TO A BIG MAINFRAME DATABASE IN DALLAS THERE THE MESSAGE IS REASSEMBLED THE LICENSE PLATE IS CHECKED AGAINST THE DATABASE OF UNPAID PARKING TICKETS AND A REPLY IS ZAPPED BACK ALONG THE SAME ROUTE TO THE DEPUTY ON THE STREET THE WHOLE PROCESS TAKES A FEW SECONDS THE BAD NEWS ARDIS IS EXPENSIVE MONTHLY COSTS PER USER CAN RUN INTO THE 100 RANGE DEPENDING ON THE NUMBER OF USERS AND THE APPLICATION EACH WIRELESS DEVICE COSTS SEVERAL THOUSAND DOLLARS AND ARDIS'S CUSTOMERS SHOULDER THE COST OF DEVELOPING CUSTOMIZED SOFTWARE DITTO FOR ENCRYPTION OR DATA SECURITY RAM MOBILE IS AIMING AT A BROADER AND MORE GENERIC MARKET THE NEW YORKBASED JOINT VENTURE OF RAM BROADCASTING CORP WOODBRIDGE NJ AND BELLSOUTH CORP ATLANTA CHARGES USERS LESS THAN ARDIS TO GET ON BOARD RATHER THAN SERVING PRIMARILY PARTICULAR COMPANIES RAM SYSTEMS ARE SET UP TO LET VIRTUALLY ANY USER SEND AND RECEIVE ELECTRONIC MAIL AND OTHER DATA TO ANOTHER USER THE CATCH ITS CUSTOMER BASE IS PUNY AT ONLY 3000 USERS BY THE END OF 1993 ACCORDING TO DATAQUEST RAM'S UNDERLYING TECHNOLOGY WAS DEVELOPED ABOUT 20 YEARS AGO BUT IT DIDN'T SHOW MUCH PROMISE UNTIL THE COMPANY GOT AN INJECTION OF 300 MILLION FROM BELLSOUTH IN 1991 DESIGNED TO LET PEOPLE WITH PORTABLE COMPUTERS ZAP EMAIL BACK AND FORTH THE RAM NETWORK USES RADIOFREQUENCY WAVES AND COVERS 6300 CITIES IN MORE THAN 200 METROPOLITAN AREAS OR ABOUT 90 OF THE URBAN BUSINESS POPULATION THAT TRANSLATES HOWEVER INTO ONLY ABOUT 30 OF THE GEOGRAPHIC US RAM CURRENTLY DOESN'T COVER RURAL AREAS OR PERHAPS THANKFULLY VACATION SPOTS SAVE WAIKIKI BEACH IN HAWAII BUT WE'RE WORKING ON IT SAYS MARTIN LEVETIN A RAM EXECUTIVE VICE PRESIDENT RAM BASE STATIONS ARE CLUSTERED AND LINKED INTO SWITCHING CABINETS CALLED MOXES AND EACH MOX IS AN ELECTRONIC TRAFFIC COP TIED TO DEDICATED PHONE LINES AS SOON AS THE MOX RECEIVES A MESSAGE IT FIGURES OUT WHERE THE MESSAGE NEEDS TO GO THEN ZAPS IT ALONG THE WIRED NETWORK TO A WAITING MOX AT THE OTHER END THAT MOX FEEDS THE MESSAGE WHICH HAS BEEN BROKEN DOWN INTO ELECTRONIC PACKETS TO THE APPROPRIATE BASE STATION SECONDS LATER THE MESSAGE SHOWS UP ON THE RECIPIENT'S COMPUTER WHICH AUTOMATICALLY REASSEMBLES IT INTO A READABLE FORMAT TO USE RAM YOU MUST GENERALLY BE ON A COMPANY EMAIL SYSTEM THAT IS TIED TO THE NETWORK OR USE RAMCOMPATIBLE SOFTWARE MICROSOFT CORP LOTUS DEVELOPMENT CORP WORDPERFECT CORP AT&T CE SOFTWARE INC AND DAVINCI SYSTEMS CORP SELL PROGRAMS THAT CAN LINK UP TO THE RAM SYSTEM YOUR PORTABLE COMPUTER MUST HAVE A WIRELESS DATA MODEM FROM INTEL CORP ERICSSON GE MOBILE COMMUNICATIONS INC RALEIGH NC OR MOTOROLA LIKE ARDIS'S RAM'S PRICING IS VOLUMEBASED THE MORE YOU USE THE CHEAPER IT GETS A CUSTOMER CAN RECEIVE 100 MESSAGES A MONTH FOR A TOTAL OF 100000 CHARACTERS FOR 25 400 MESSAGES FOR 75 A MONTH AND UNLIMITED MESSAGING FOR 135 A MONTH MOST OF RAM'S USERS HOWEVER FALL INTO THE 75AMONTH CATEGORY RAM SAYS BURGER KING A UNIT OF GRAND METROPOLITAN PLC IS TESTING ONE POINTOFSALE APPLICATION THAT ALLOWS PEOPLE TO PAY FOR THEIR PURCHASES WITH CREDIT CARDS A SPECIAL DEVICE VALIDATES CREDIT CARDS IN LESS THAN SEVEN SECONDS ABOUT THE TIME IT TAKES TO SAY ONE WHOPPER HOLD THE PICKLES ONE CHOCOLATE SHAKE AND AN EXTRALARGE ORDER OF FRIES PLEASE THE CELLULAR PHONE SYSTEM LED BY MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH COULD BECOME A WIRELESSDATA POWERHOUSE BY ALMOST ANY MEASURE FOR STARTERS IT REACHES 96 OF THE GEOGRAPHIC US WITH A BUILTIN CUSTOMER BASE OF MORE THAN THREE MILLION PEOPLE WHILE DATA TRANSMISSION OVER THE CURRENT SYSTEM CAN BE A FRACTURED AND FRUSTRATING AFFAIR MCCAW IS PUSHING CDPD TO CHANGE THAT THE DIGITAL TECHNOLOGY MOREOVER IS EXPECTED TO BE CHEAP COMPARED WITH OTHER WIRELESS OPTIONS WITH BASIC RATES WELL WITHIN REACH OF EVEN CASUAL USERS UNLIMITED MESSAGING WILL PROBABLY WIND UP COSTING AROUND 45 A MONTH PROPONENTS SAY EXPERTS SAY THAT CDPD'S POTENTIAL IS ENORMOUS AND THAT IT COULD BECOME THE WALMART OF WIRELESS DATA NETWORKS A CATEGORYKILLER THAT OFFERS A LITTLE SOMETHING FOR EVERYONE EXCEPT COMPETITORS CDPD ENDS THE ARGUMENT SAYS PAUL CALLAHAN A SENIOR ANALYST AT FORRESTER RESEARCH INC A CONSULTING FIRM IN CAMBRIDGE MASS WHO BELIEVES IT HAS THE BEST CHANCE TO BECOME A DE FACTO STANDARD IN THE INDUSTRY OTHERS AGREE OUR FEELING IS THAT PEOPLE TEND TO USE WHAT THEY'RE MOST FAMILIAR WITH WHAT THEY ALREADY HAVE AND THAT'S CELLULAR SAYS DONALD BLUMBERG PRESIDENT OF DF BLUMBERG ASSOCIATES A FORT WASHINGTON PA CONSULTING FIRM THAT TRACKS THE MARKET SOUNDS GREAT BUT CDPD HAS BARELY MOVED BEYOND A FEW TEST BEDS AND IT MIGHT NEVER GROW TO THE GRAND SCALE IMAGINED BY ITS PRINCIPAL BACKER CRAIG O MCCAW MCCAW CELLULAR'S CHAIRMAN AND CHIEF EXECUTIVE HE MUST GET MORE THAN 250 PLAYERS FROM CELLULAR SERVICE PROVIDERS TO HARDWARE MAKERS AND SOFTWARE FIRMS TO COOPERATE IN BUILDING EQUIPMENT AND SOLUTIONS THAT WILL WORK TOGETHER THAT'S A CONSIDERABLE EFFORT FOR AN INDUSTRY FILLED WITH PLAYERS NOT KNOWN FOR THEIR TEAM SPIRIT IN ADDITION THE CELLULAR STRATEGY TO SIMPLY OVERLAY DIGITAL DATA ATOP PHONECALL TRAFFIC IS TREMENDOUSLY COMPLICATED AND SOME OBSERVERS AREN'T SURE IT WILL WORK AS WELL AS PROPONENTS PROMISE THE MARKET FOR WIRELESS DATA NETWORKS HAS LANGUISHED IN PART BECAUSE OF A DECIDED LACK OF USER ENTHUSIASM THAT COULD CHANGE UNDER CDPD WHICH OFFERS USERS THE BEST OF BOTH WORLDS VOICE AND DATA CDPD DEVELOPED BY IBM WITH MCCAW AND A CONSORTIUM OF MAJOR CELLULAR CARRIERS WILL ULTIMATELY USE DEAD OR UNUSED AIR TIME IN VOICE TRANSMISSIONS PAUSES BETWEEN SENTENCES WORDS OR EVEN SYLLABLES TO SQUEEZE IN SHORT BURSTS OF DATA THE EXISTING CELLULAR NETWORK WORKS AT ONLY ABOUT 60 CAPACITY CDPD BACKERS SAY LEAVING PLENTY OF ROOM FOR DATA TRANSMISSIONS IF VOICE CHANNELS ARE JAMMED AS THEY OFTEN ARE IN BUSY MARKETS LIKE NEW YORK CDPD WILL LET DATA STREAMS HOP FROM ONE CHANNEL TO ANOTHER IN SEARCH OF AN OPENING AND THEN FIRE OFF WHEN THEY FIND ONE FIVE MAJOR CITIES WERE SCHEDULED TO BE UP AND RUNNING WITH CDPD TECHNOLOGY BY LAST MONTH MIAMI DALLAS SEATTLE SAN FRANCISCO AND NEW YORK MCCAW HAS ANNOUNCED PLANS TO INSTALL CDPD ACROSS ITS ENTIRE NETWORK WHICH CAN REACH 60 MILLION POTENTIAL CUSTOMERS BY THE END OF THE YEAR IN ADDITION BELL ATLANTIC CORP WHICH IS IN THE PROCESS OF MERGING WITH CABLE GIANT TELECOMMUNICATIONS INC AND A FEW OTHER BABY BELLS HAVE SAID THEY HOPE TO HAVE THEIR CDPD NETWORKS FULLY DEPLOYED WITHIN TWO YEARS EVEN BELLSOUTH WHICH WASN'T INCLUDED IN THE DEVELOPMENT PHASE BECAUSE OF ITS RAM CONNECTION IS CONSIDERING OFFERING CDPD ACROSS ITS WIRELESS NETWORKS SOME SAY THAT'S A STRONG TESTAMENT TO THE ALLURE OF THE NEW TECHNOLOGY INDEED AT A MAJOR TRADE SHOW LAST FALL MCCAW CLAIMS IT GOT 4000 LEADS FROM SOFTWARE DEVELOPERS FOR CDPD APPLICATIONS THAT ISN'T BAD CONSIDERING CDPD WAS OPERATING IN JUST ONE SMALL MARKET IN THE MIDDLE OF THE DESERT LAS VEGAS NOT EXACTLY A TOUGH PROVING GROUND FOR TRICKY INCITY TRANSMISSIONS MS CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110132 940211 REVIEW & OUTLOOK EDITORIAL TEXAS TRIALS IT'S BEEN NATIONAL NEWS THAT US SENATOR KAY BAILEY HUTCHISON IS ON TRIAL THIS WEEK ON CHARGES SHE EXPLOITED HER FORMER OFFICE AS TEXAS STATE TREASURER FOR POLITICAL AND PERSONAL PURPOSES SEN HUTCHISON IS A REPUBLICAN HAVING MORE DIFFICULTY MAKING IT ACROSS THE TEXAS BORDER THOUGH IS THE NEWS THAT THE OFFICE OF GOVERNOR ANN RICHARDS IS SAID TO HAVE IMPROPERLY PRESSURED STATE ARCHIVISTS TO JUSTIFY THE SHREDDING OF HER OWN SENSITIVE TELEPHONE RECORDS SHE'S A DEMOCRAT IF SENATOR HUTCHISON IS DRIVEN FROM OFFICE GOVERNOR RICHARDS APPOINTS HER REPLACEMENT ADDING TO THE DEMOCRATS' STRENGTH IN THE SENATE DEMOCRATS WERE SHOCKED LAST JUNE WHEN MS HUTCHISON DEMOLISHED DEMOCRAT BOB KREUGER BY 2 TO 1 IN A SPECIAL US SENATE ELECTION IT WAS ABOUT THEN THAT STATE DEMOCRATS STARTED GROUSING THAT MS HUTCHISON HAD MISUSED HER POSITION AS TREASURER TO ADVANCE HER POLITICAL ACTIVITIES THEN TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE STAGED A RAID OF THE TREASURER'S OFFICE AND SEIZED A PILE OF RECORDS MR EARLE A DEMOCRAT IS A LONGTIME ALLY OF GOVERNOR RICHARDS MR EARLE THEN GOT A GRAND JURY TO INDICT SEN HUTCHISON ON SEVERAL FELONY COUNTS OF MISUSING STATE EMPLOYEES AND CONCEALING EVIDENCE THAT POLITICAL CALLS HAD BEEN MADE ON A STATE PHONE BUT A STATE JUDGE THREW OUT MOST OF THE INDICTMENT AS TOO VAGUE MR EARLE WAS FORCED TO SEEK A REVISED INDICTMENT THAT CHARGES HER WITH CONCEALING TELEPHONE RECORDS AND ASKING STATE EMPLOYEES TO SHOP FOR HER AND WRITE PERSONAL THANKYOU NOTES REPUBLICANS CRIED FOUL CHARGING THAT SENATOR HUTCHISON WAS BEING PROSECUTED FOR PRACTICES COMMON AMONG TEXAS OFFICIALS ON AUGUST 4 GOP CHAIRMAN FRED MEYER NOTED THAT GOVERNOR RICHARDS HAD 13 PRIVATE PHONE LINES IN HER OFFICIAL OFFICES INCLUDING TWO TIED DIRECTLY TO HER CAMPAIGN HEADQUARTERS THAT MONTH IT WAS REPORTED GOVERNOR RICHARDS ORDERED EIGHT OF THE LINES REMOVED NOW IT TURNS OUT THAT AT THE SAME TIME GOVERNOR RICHARDS YANKED THE LINES OUT HER LAWYERS ORDERED THE IMMEDIATE DESTRUCTION OF 2 1/2 YEARS OF LONGDISTANCE PHONE RECORDS AND ASKED THAT FUTURE RECORDS BE DESTROYED EVERY 30 DAYS THIS CAME TO LIGHT ONLY THIS PAST JANUARY 27 AFTER WHICH THE GOVERNOR'S AIDES OFFERED FOUR DIFFERENT VERSIONS OF WHAT HAPPENED THEY FINALLY ACKNOWLEDGED THAT STATE LAW INDEED REQUIRES SUCH RECORDS BE KEPT FOR THREE YEARS NOT 30 DAYS THE GOP'S MR MEYER ALSO NOTES THAT THE STATE DEPARTMENT OF PUBLIC SAFETY IS ALSO RESISTING EFFORTS TO SUBPOENA THE GOVERNOR'S DAILY SCHEDULE ON THE GROUNDS THAT IT WOULD COMPROMISE HER SAFETY THE STATE'S POLICIES ON RECORD KEEPING ARE SET BY THE LIBRARY AND ARCHIVES COMMISSION WHICH IS CHAIRED BY CAROLYN ARMSTRONG SHE AND WILLIAM GOOCH THE COMMISSION'S DIRECTOR HAVE MADE SIGNED STATEMENTS THAT INDICATE THE GOVERNOR'S OFFICE WAS WORRIED ABOUT THE APPEARANCES OF SHREDDING THE SAME KIND OF PHONE RECORDS MRS HUTCHISON WAS INDICTED FOR ALLEGEDLY CONCEALING THE COMMISSION'S MR GOOCH SAYS GOVERNOR RICHARDS'S AIDES TOLD HIM ON JANUARY 27 THE DAY THE STORY ABOUT SHREDDING THE PHONE RECORDS BROKE THAT THE GOVERNOR WANTED HIM TO ISSUE A LETTER SAYING HER OFFICE HAD DONE NOTHING WRONG THE GOVERNOR'S AIDES WERE UNHAPPY WITH THE LETTER HE WROTE FOR THEM WHICH SAID THE SHREDDING WAS AN HONEST MISINTERPRETATION OF STATE RULES THEY DEMANDED AND GOT FROM HIM A MORE SWEEPING EXONERATION OUR AGENCY WAS PLACED IN THE UNTENABLE POSITION OF MAKING JUDGMENTS ABOUT WHAT IS LEGAL AND ILLEGAL SAYS MS ARMSTRONG I BELIEVE THE AGENCY WAS MISUSED IN AN EFFORT TO PROVIDE COVER FOR THE DESTRUCTION OF TELEPHONE RECORDS BY THE GOVERNOR'S OFFICE NOW WE SHOULD ADD IT'S NOT AT ALL CLEAR THAT EITHER OF THESE TWO HAVE ACTUALLY DONE ANYTHING WRONG BUT IT IS CLEAR THAT THE DEMOCRATS LOBBED THE FIRST INSINUATION WE'D HAVE THOUGHT THAT ONE LESSON AFTER DEMOCRATS TRIED TO BUILD ED ROLLINS'S NEW JERSEY WALKINGAROUNDMONEY TALE INTO A BONFIRE UNDER CHRISTIE WHITMAN IS THAT THE WIND CAN SHIFT GOP SENATOR PHIL GRAMM PREDICTS THAT IF MRS HUTCHISON IS ACQUITTED THEY'LL BE HUNTING DOWN DEMOCRATS WITH DOGS IN TEXAS 9402110131 940211 HEARD ON THE STREET PROS RECOMMEND WHICH STOCKS TO HOLD AND WHICH TO FOLD IF MARKET DECLINES BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE TURMOIL LATELY IN THE DOW JONES INDUSTRIAL AVERAGE REMINDS INVESTORS THAT WALL STREET IS A TWOWAY STREET WHILE STOCKS HAVE MANAGED TO RECOUP A PORTION OF THE 104 POINTS THEY SURRENDERED LATE LAST WEEK MANY PROFESSIONALS ARE STILL NERVOUS LAST WEEK'S SUDDEN DIP SHOWED HOW TENDER THE MARKET IS SAYS MORGAN STANLEY STRATEGIST BYRON WIEN IF THE MARKET WERE TO TURN SOUTH FOR A WHILE WHICH STOCKS WOULD HOLD UP BEST THERE ARE NO GUARANTEES BUT MONEY MANAGERS SAY CHEAP STOCKS THAT PAY A DIVIDEND AND DON'T HAVE TOO MUCH DEBT OFTEN WEATHER DOWNTURNS PRETTY WELL THE ACCOMPANYING TABLE FROM MARKETBASE A MARKETINFORMATION FIRM IN NEEDHAM MASS IDENTIFIES SOME POSSIBLE SAFE HAVENS IT ALSO HIGHLIGHTS SOME STOCKS THAT LOOK VULNERABLE AS A SIGN OF THE TIMES MARKETBASE FOUND FEWER THAN TWO DOZEN STOCKS OUT OF MORE THAN 2000 NONFINANCIAL COMPANIES SCREENED THAT CLEARED CERTAIN STATISTICAL HURDLES DEFINING POSSIBLE SAFE HAVENS MEANWHILE KATHERINE HENSEL A LEHMAN BROTHERS STRATEGIST HAS FINISHED A MAJOR STUDY OF WHICH STOCKS HOLD UP BEST IN WEAK MARKETS CYCLICAL STOCKS THE MARKET'S DARLINGS LATELY ARE EXACTLY THE ONES THAT REALLY GET KILLED IN DOWNTURNS SHE SAYS MS HENSEL SAYS INVESTORS WHO EXPECT A DROP SHOULD BEWARE OF HOTEL SEMICONDUCTOR HOMEBUILDING AND AIR FREIGHT STOCKS BUT THEY SHOULD CONSIDER BEEFING UP HOLDINGS OF OIL FOOD AND UTILITY ISSUES TO REACH THESE CONCLUSIONS THE LEHMAN STUDY REVIEWED NINE MARKET CORRECTIONS SINCE 1962 OR EVERY DOWNTURN OF 5 OR MORE THAT DIDN'T PRECEDE A RECESSION FOR HER PART MS HENSEL EXPECTS A CLASSIC CORRECTION OF 10 TO 15 IN THE NEXT FEW MONTHS NOW THAT THE FEDERAL RESERVE HAS BEGUN TO RAISE INTEREST RATES THE STUDY FOUND THREE MAIN CHARACTERISTICS THAT PREDICT HOW FRAGILE A STOCK WILL BE IN A DOWNTURN THE FIRST IS VOLATILITY MEASURED BY WHAT MARKET PROFESSIONALS CALL BETA A STOCK WITH A BETA OF 100 IS PRECISELY AS VOLATILE AS THE OVERALL MARKET A STOCK WITH A BETA OF 15 TENDS TO MOVE HALF AGAIN AS FAR AS THE MARKET IF THE MARKET RISES 10 SUCH A STOCK CAN BE EXPECTED TO CLIMB 15 AND VICE VERSA WHEN PRICES ARE FALLING INVESTORS DO BETTER WITH LOWBETA STOCKS SECOND THE STUDY FOUND THAT HOT STOCKS THOSE THAT HAD THE BEST GAINS IN THE PRIOR YEAR TYPICALLY FELL MORE THAN MOST IN DOWN MARKETS THIRD STOCKS WITH ABOVEAVERAGE DIVIDEND YIELDS USUALLY WITHSTOOD MARKET SLUMPS BETTER WHAT STOCKS MEET THOSE CRITERIA TODAY IN THE OIL GROUP MS HENSEL POINTS TO IMPERIAL OIL PENNZOIL AND ATLANTIC RICHFIELD THE NEWS IS NOT GOING TO GET A LOT WORSE FOR OILS NOW THAT THE PRICE OF OIL HAS SUNK TO AROUND 14 A BARREL SHE SAYS AMONG UTILITIES DPL NORTHEAST UTILITIES CENTRAL & SOUTH WEST AND UNION ELECTRIC SEEM SECURE MS HENSEL SAYS IN THE FOOD GROUP LANCE UNIVERSAL FOODS AND QUAKER OATS HAVE GOOD DEFENSIVE PROFILES DRUG AND TOBACCO STOCKS WERE DEFENSIVE IN THE PAST BUT LATELY HAVE SHOWN HIGHER BETAS AND PROBABLY WOULD BE FLIMSY SHIELDS AGAINST A DECLINE SHE SAYS BRETT BRUBAKER PRESIDENT OF ABRAHAM & SONS IN CHICAGO SAYS THE VULNERABLE LIST GETS LONGER EVERY DAY MR BRUBAKER GOES BOTH LONG AND SHORT STOCKS THAT IS HE BOTH OWNS THEM AND BETS AGAINST THEM FOR THE FIRST TIME SINCE 1987 MR BRUBAKER HAS MORE BEARISH SHORT POSITIONS THAN BULLISH LONGS I'M SO SHORT I MAKE DANNY DEVITO LOOK LIKE WILT THE STILT HE SAYS ONE STOCK MR BRUBAKER THINKS IS RIPE FOR A FALL IS CHRYSLER A COUPLE OF YEARS AGO HE WAS ONE OF A PRESCIENT FEW INVESTMENT PROS TO BUY CHRYSLER AT 12 A SHARE YESTERDAY THE STOCK CLOSED AT 59 3/4 BUT THE ENTHUSIASM IS OVERDONE MR BRUBAKER SAYS IT IS AS POPULAR TODAY AS IT WAS NEGLECTED IN 1990 BESIDES FUNDAMENTALS MR BRUBAKER USES STOCK CHARTS CHRYSLER'S CHART SHOWS TODAY'S PRICE TO BE OMINOUSLY SIMILAR TO ITS 1973 AND 1987 PEAKS THAT HE SAYS IS A DANGER SIGN THE PREVIOUS PEAKS WERE UNSUSTAINABLE AND THIS ONE PROBABLY WILL BE TOO INDEED HE SAYS SIMILAR ANALYSIS FOR THE OVERALL MARKET SHOWS THE SAME FROTHINESS MR BRUBAKER ALSO THINKS AIRGAS IS TOO HIGH IT CLOSED YESTERDAY AT 24 1/4 ABOUT 14 TIMES PERSHARE SALES OR MORE THAN TWICE ITS NORMAL MULTIPLE MY NOSE IS BLEEDING FROM THE ALTITUDE HE EXCLAIMS HIS OTHER BEARISH BETS INCLUDE AIRBORNE FREIGHT RG BARRY CATERPILLAR CLARK EQUIPMENT ECHLIN HERCULES MORTON INTERNATIONAL AND PLYGEM INDUSTRIES ON THE FLIP SIDE MR BRUBAKER LIKES STOCKS THAT HAVE ALREADY BEEN SLICED AND DICED AND IN HIS OPINION ARE UNLIKELY TO FALL MUCH MORE HE THINKS ASARCO CALGON CARBON KATZ SEMICONDUCTOR AND ROLLINS ENVIRONMENTAL FIT THE BILL FRED GORDON EDITOR OF PLAIN TALK INVESTOR A NORTHBROOK ILL NEWSLETTER SAYS THAT IF HE SENSES THE MARKET TURNING SOUR I'D BE THE MOST CAUTIOUS ON THE SECTORS THAT THE BULL HAS LOVED THE MOST THAT'S WHERE INVESTORS WILL GRAB THE PROFITS AND RUN HIS AVOID LIST INCLUDES SEMICONDUCTORS BROKERAGE HOUSES AUTOS AND AUTO PARTS RAILROADS TRUCKERS TELECOMMUNICATIONS STEELS FINANCIAL SERVICES AND RESTAURANTS FOR PROTECTION MR GORDON SAYS HE'D NIBBLE AT GOLD AND OIL HE'D ALSO CONSIDER FOOD AND SUPERMARKET STOCKS BUT MOST IMPORTANTLY HE'D RAISE CASH JOAN E LAPPIN PRESIDENT OF GRAMERCY CAPITAL IN NEW YORK SUGGESTS LOOKING FOR STOCKS WHOSE UNDERLYING BUSINESS IS IMPROVING SO MUCH THAT THEY COULD BUCK A DOWNTREND KNIGHTRIDDER THE NEWSPAPER CHAIN AND GENERAL MOTORS BOTH QUALIFY IN HER VIEW MS LAPPIN DOESN'T EXPECT A STOCK MARKET SLIDE SOON BUT AS A PRECAUTION SHE SAYS WE'VE BEEN TRYING TO MOVE TO LARGER MORE LIQUID SECURITIES SO IF YOU FEEL YOU NEED THE EXIT THERE IS ONE SHE'S ALSO AVOIDING BANKS IF THE FED THOUGHT IT WAS NECESSARY TO MAKE FURTHER RATE INCREASES SHE SAYS THE STOCKS THAT WOULD SUFFER THE MOST WOULD BE THE FINANCIAL STOCKS A GARY SHILLING WHO RUNS THEMATIC INVESTMENT PARTNERS IN SPRINGFIELD NJ THINKS INVESTORS CAN STILL MAKE MONEY IN STOCKS OF TECHNOLOGY COMPANIES THAT ENHANCE PRODUCTIVITY SUCH AS MOTOROLA INTEL AND LOTUS DEVELOPMENT BUT HE BELIEVES A MARKET SLIDE IS COMING NOT A CRASH BUT A CHINESE WATER TORTURE MARKET OF UNREMITTING DIPS SO MANY INVESTORS ARE NEW IN THE MARKET HE SAYS THEY REGARD DECLINES AS A BUYING OPPORTUNITY I THINK THEY'RE GOING TO BE FRUSTRATED WHAT'S UP AT MCKESSON CORP THE DRUG WHOLESALER'S STOCK SURGED 5 1/8 IN THE PAST TWO DAYS TO CLOSE YESTERDAY AT 64 1/8 AND IT'S BEEN CLIMBING STEADILY SINCE THE BEGINNING OF THE YEAR TRADERS SPECULATE THAT THE SAN FRANCISCO COMPANY COULD BE UP FOR GRABS WHAT MAKES MCKESSON ATTRACTIVE BAIT IS PCS ITS PRESCRIPTIONDRUG MANAGEMENT BUSINESS THE LARGEST OF ITS KIND PCS RUNS PRESCRIPTIONDRUG BENEFIT PROGRAMS FOR ABOUT 45 MILLION PEOPLE INCLUDING EMPLOYEES OF CHRYSLER GENERAL MOTORS AND THE FEDERAL GOVERNMENT LIKE ITS BIGGEST COMPETITOR MEDCO WHICH WAS RECENTLY GOBBLED UP BY MERCK PCS ACTS AS GATEKEEPER FOR THE BENEFITS PLANS IT MANAGES DECIDING WHICH DRUGS ARE APPROVED FOR PARTICIPANTS' USE THIS MAKES PCS AN APPEALING TARGET FOR DRUG COMPANIES ANXIOUS TO DEFEND FUTURE SALESALL THE MORE SO SINCE MOST DRUGS ON THE MARKET HAVE DIRECT SUBSTITUTES WHOEVER OWNS PCS CAN MAKE SURE HIS DRUGS ARE INCLUDED IN BENEFIT PLANS AND OTHERS ARE NOT SAYS HEMANT K SHAH A PHARMACEUTICALSINDUSTRY ANALYST EVEN THOUGH PCS IS STILL SMALL ANALYSTS ESTIMATE THAT ITS REVENUE WILL COME IN UNDER 200 MILLION FOR THE FISCAL YEAR ENDING IN MARCH IT HAS BEEN RAPIDLY GAINING NEW ACCOUNTS LAWRENCE MARSH OF WHEAT FIRST BUTCHER & SINGER IN RICHMOND VA SAYS PCS'S MARGINS ARE SO HIGH THAT IT WILL GENERATE ABOUT 20 OF MCKESSON'S OPERATING PROFITS WHICH HE ESTIMATES AT 350 MILLION IN THE NEXT FISCAL YEAR TAKEOVER SPECULATORS APPLYING THE LOFTY MULTIPLE MERCK PAID FOR MEDCO SAY MCKESSON COULD COMMAND A BID OF MORE THAN 80 BUT MR SHAH AND OTHERS WARN THAT ON A FUNDAMENTAL BASIS MCKESSON ALREADY LOOKS OVERPRICED RUMORED BUYERS INCLUDE BRISTOLMYERS SQUIBB AND SCHERINGPLOUGH BOTH OF WHICH WOULDN'T COMMENT A MCKESSON SPOKESMAN ALSO DECLINED COMMENT BUT STRESSED THAT THE COMPANY HAS A BATTERY OF ANTITAKEOVER PROVISIONS IN PLACE 9402110130 940211 GM POSTS NET OF 118 BILLION FOR 4TH QUARTER TAX ITEMS OBSCURE RESULTS SHARES FALL IN SELLOFF OF AUTO MAKERS' STOCKS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP POSTED A FOURTHQUARTER PROFIT OF 118 BILLION OR 128 A SHARE REVERSING A YEAREARLIER LOSS AND FINISHING THE YEAR WITH A PROFIT FOR THE FIRST TIME SINCE 1989 THE FOURTHQUARTER PROFIT INCLUDED BETTERTHANEXPECTED RESULTS FOR NORTH AMERICAN AUTO OPERATIONS SIGNALED STRONG EARNINGS FOR 1994 AND WAS GENERALLY AT THE HIGH END OF WALL STREET EXPECTATIONS BUT SOME ENDOFTHEYEAR TAX COMPLICATIONS MUDDIED THE PICTURE CONFUSING SOME INVESTORS AND ANALYSTS THAT TOGETHER WITH DISAPPOINTMENT THAT NEITHER GM NOR FORD MOTOR CO PRODUCED A BIG EARNINGS SURPRISE THIS WEEK LED TO A SELLOFF OF AUTO STOCKS ON WALL STREET GM SHARES FELL 175 TO 6250 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FORD WHICH REPORTED STRONG FOURTHQUARTER RESULTS TUESDAY FELL 250 TO 66 IN BIG BOARD TRADING AND SHARES OF CHRYSLER CORP WHICH HAD INFLATED EXPECTATIONS FOR THE INDUSTRY BY REPORTING A REAL EARNINGS SURPRISE A MONTH AGO SKIDDED 1625 TO 5975 ALSO IN BIG BOARD TRADING GM'S RESULTS THOUGH UNDERSCORED THAT A SUBSTANTIAL TURNAROUND IS UNDER WAY AT WHAT HAD BECOME THE WORLD'S SICKEST AUTO MAKER OPERATIONALLY THEY'RE DOING EVERYTHING THEY SAID THEY WOULD OBSERVED JACK V KIRNAN AUTO ANALYST AT SALOMON BROS AT THE END OF THE DAY IT'S PRETTY IMPRESSIVE THE FOURTHQUARTER PROFIT INCLUDES A 1895 MILLION LOSS ON THE SALE OF THE ALLISON GAS TURBINE DIVISION AND A TAX BENEFIT OF ABOUT 350 MILLION RELATED TO A RISE IN FOREIGN TAX CREDITS FOR THE PERIOD THE INCREASE OCCURRED BECAUSE THE COMPANY UNDERESTIMATED THE CREDITS IN THE PREVIOUS THREE QUARTERS THIS ELEMENT TOGETHER WITH A 4443 MILLION BENEFIT RELATED TO THE CHANGE IN TAX RATES THAT GM SAID IT BOOKED IN THE THIRD QUARTER HAD SOME ANALYSTS QUESTIONING JUST HOW GOOD THE FOURTHQUARTER RESULTS REALLY WERE PARTICULARLY IN NORTH AMERICA IN THE YEAREARLIER QUARTER GM HAD A LOSS OF 6518 MILLION OR 125 A SHARE THAT FIGURE INCLUDED A WRITEDOWN OF GM'S INVESTMENT IN NATIONAL CAR RENTAL SYSTEMS INC OF 7441 MILLION OR 111 A SHARE AND A GAIN ON THE SALE OF A STAKE IN DAEWOO MOTOR CO OF 1651 MILLION OR 25 CENTS A SHARE REVENUE ROSE 48 IN THE LATEST QUARTER TO 3727 BILLION FROM 3555 BILLION IN ITS HUGE NORTH AMERICAN AUTO OPERATIONS GM SAID IT HAD A PROFIT FOR THE FOURTH QUARTER OF ABOUT 75 MILLION EXCLUDING THE 350 MILLION TAX BENEFIT THAT REVERSES A YEAREARLIER LOSS OF 179 BILLION AND MARKS THE FIRST TIME GM'S NORTH AMERICAN VEHICLE UNIT WAS IN THE BLACK SINCE THE SECOND QUARTER OF 1989 GM SAID WHILE THE NORTH AMERICAN UNIT WAS STILL IN THE RED TO THE TUNE OF 982 MILLION FOR THE FULL YEAR GM SAID IT MET ITS GOAL OF BREAKING EVEN IN NORTH AMERICA BEFORE INTEREST TAXES AND SPECIAL CHARGES POSTING A PROFIT OF 362 MILLION FOR 1993 ON THAT BASIS FOR ALL OF 1994 THE COMPANY HAS VOWED TO AT LEAST BREAK EVEN ON A NETINCOME BASIS IN NORTH AMERICA G RICHARD WAGONER JR GM'S CHIEF FINANCIAL OFFICER ATTRIBUTED THE TURNAROUND IN NORTH AMERICA TO LOWER MARKETING COSTS TO A SHARP REDUCTION IN CUTRATE VEHICLE SALES TO DAILYRENTAL FLEETS AND TO SIGNIFICANTLY LOWER MATERIALS COSTS AMONG OTHER COSTCUTTING MOVES SALES INCENTIVES WERE CUT TO 880 A VEHICLE IN THE FOURTH QUARTER FROM 960 A YEAR EARLIER MR WAGONER SAID HE ADDED THAT GM MADE PRODUCTIVITY IMPROVEMENTS OF MORE THAN 10 LAST YEAR INDEED FIGURES DISCLOSED BY GM INDICATE THAT THE IMPROVED RESULTS REFLECT DOGGED ATTENTION TO BUSINESS FUNDAMENTALS WORLDWIDE VEHICLE PRODUCTION PER WORKER IN THE FOURTH QUARTER ROSE 14 FROM A YEAR AGO AND RESULTS PER VEHICLE MADE A 700 SWING FROM A LOSS A YEAR AGO TO A PROFIT IN THE FOURTH QUARTER OF ABOUT 340 GM REDUCED AVERAGE WORLDWIDE EMPLOYMENT LAST YEAR BY 62000 EMPLOYEES TO 705000 MR WAGONER SAID THAT IN NORTH AMERICAN VEHICLE OPERATIONS THE NUMBER OF SALARIED EMPLOYEES IS EXPECTED TO DECLINE THIS YEAR TO THE HIGH 60000S FROM 71000 AT YEAR END AND HOURLY EMPLOYMENT IS EXPECTED TO DECLINE TO 245000 TO 250000 FROM 262000 AT YEAR END MR WAGONER ADDED THAT GM MANAGED TO HOLD TOTAL HEALTHCARE COSTS TO 56 BILLION LAST YEAR ABOUT FLAT WITH THE 1992 TOTAL FOR THE FIRST TIME IN THE HISTORY OF MANKIND HE SAID THIS REFLECTED STAFF CUTBACKS TIGHTER COST CONTROLS AND OTHER MEASURES ALSO CONTRIBUTING TO THE FOURTHQUARTER RESULTS WAS A PROFIT OF 270 MILLION FROM INTERNATIONAL AUTO OPERATIONS DOWN SHARPLY FROM THE YEAREARLIER PROFIT OF 489 MILLION MR WAGONER SAID THE DECLINE WAS CHIEFLY BECAUSE OF SHARPLY LOWER EARNINGS IN RECESSIONWRACKED EUROPE WALL STREET ANALYSTS POINTED TO GM'S SUBSTANTIALLY IMPROVED CASH POSITION AS EVIDENCE THAT THE VITAL SIGNS WERE BETTER THAN EXPECTED AS MORGAN STANLEY'S SCOTT MERLIS PUT IT GM FINISHED THE YEAR WITH 976 BILLION IN CASH AND CASH EQUIVALENTS ON HAND UP 25 BILLION FROM A YEAR EARLIER AT THE END OF 1991 GM HAD BEEN DOWN TO JUST 4 BILLION CAPITAL SPENDING OF 635 BILLION ROUGHLY MATCHED DEPRECIATION AND AMORTIZATION GM IMPROVED ITS CASH POSITION DESPITE APPLYING 44 BILLION AGAINST ITS UNFUNDED PENSION LIABILITY GM SAID THE LIABILITY AMOUNTED TO 223 BILLION AT YEAR END LOWER THAN THE 24 BILLION IT HAD FORECAST GM ALSO HAS PROPOSED TO CONTRIBUTE 55 BILLION OF ITS CLASS E STOCK TO THE FUND WHICH WOULD REDUCE THE LIABILITY TO 17 BILLION MR WAGONER SAID THE COMPANY IS MAKING GOOD PROGRESS TOWARD GETTING GOVERNMENT CLEARANCES FOR THE MOVE CLASS E STOCK REPRESENTS A DIVIDEND INTEREST IN EARNINGS OF GM'S ELECTRONIC DATA SYSTEMS INC UNIT MR WAGONER EMPHASIZED THAT GM NEEDS TO CONTINUE GENERATING CONSIDERABLE CASH AS THE US AUTO MARKET EXPANDS SO THAT IT CAN FURTHER REDUCE THE PENSION LIABILITY AND PAY OFF DEBT BEFORE THE NEXT DOWN CYCLE WE NEED A STRONG '94 AND '95 AND IT WOULD BE NICE IF WE COULD GO UNTIL '97 OR '98 BEFORE THE NEXT DOWNTURN MR WAGONER SAID WHILE MR WAGONER WOULDN'T DISCLOSE HOW MUCH GM WANTS TO PAY INTO THE FUND THIS YEAR WALL STREET ANALYSTS CALCULATE THAT THE COMPANY COULD GENERATE ENOUGH CASH TO MATCH LAST YEAR'S CONTRIBUTION AND IF INTEREST RATES EDGE UP CHANGING THE ASSUMPTIONS BEHIND THE LIABILITY THEY COULD HAVE IT DOWN TO 9 BILLION OR 10 BILLION BY THE END OF THE YEAR MR KIRNAN OF SALOMON BROS SAID MR WAGONER DECLINED TO FORECAST GM'S EARNINGS FOR THIS YEAR BUT HE INDICATED THAT MANGEMENT'S GOAL IS TO PUSH THE RATIO OF NET INCOME TO NET SALES TOTAL REVENUE MINUS FINANCEUNIT REVENUE AND CERTAIN OTHER REVENUES TO 5 FROM LAST YEAR'S 2 BASED ON 1993'S NET SALES OF 1253 BILLION THAT WOULD TRANSLATE TO FULLYEAR NET INCOME OF 63 BILLION OR ABOUT 880 A SHARE WHEN THAT GOAL IS REACHED WHILE NOBODY IS FORECASTING EARNINGS OF THAT MAGNITUDE FOR 1994 WALL STREET ANALYSTS ARE PREDICTING PROFITS OF 525 TO 550 A SHARE AND MR KIRNAN FOR ONE SEES EARNINGS ON THE ORDER OF 850 A SHARE BY 1995 FOR ALL OF 1993 GM POSTED NET INCOME OF 247 BILLION OR 213 A SHARE COMPARED WITH A 1992 NET LOSS OF 235 BILLION OR 485 A SHARE THE 1993 RESULTS INCLUDE A CHARGE OF 589 MILLION OR 83 CENTS A SHARE FOR PLANT CLOSINGS THE LOSS ON THE SALE OF THE GAS TURBINE UNIT OF 1895 MILLION OR 27 CENTS A SHARE A CHARGE OF 1438 MILLION OR 20 CENTS A SHARE RELATED TO LABORCONTRACT COSTS AND THE TWO TAXBENEFIT GAINS THE 1992 NET LOSS INCLUDES A 2088 BILLION CHARGE OR 3343 A SHARE RELATED TO AN ACCOUNTING CHANGE FOR EMPLOYEE HEALTH BENEFITS A SPECIAL RESTRUCTURING CHARGE OF 7494 MILLION OR 97 CENTS A CHARE THE 7441 MILLION WRITEDOWN OF NATIONAL CAR RENTAL AND THE 1651 MILLION GAIN ON THE DAEWOO SALE 9402110129 940211 BUSINESS BRIEF MACMILLAN BLOEDEL LTD PAPER COMPANY TO INVEST 149 MILLION IN NEW MACHINE MACMILLAN BLOEDEL LTD SAID IT WILL INVEST 200 MILLION CANADIAN DOLLARS US149 MILLION IN A NEW LIGHTWEIGHT COATED PAPER MACHINE AT ITS MILL IN PORT ALBERNI BRITISH COLUMBIA THE VANCOUVER BRITISH COLUMBIABASED FORESTPRODUCTS COMPANY SAID THE INVESTMENT IS PART OF A STRATEGY TO REDUCE ITS DEPENDENCE ON THE SALE OF SUCH COMMODITIES AS NEWSPRINT THE PORT ALBERNI MILL NOW MAKES NEWSPRINT AND DIRECTORY PAPER LIGHTWEIGHT COATED PAPER IS USED IN MAGAZINES THE NEW MACHINE TO BEGIN OPERATING BY LATE 1995 WILL PRODUCE 176 TONS A YEAR ROBERT FINDLAY PRESIDENT AND CHIEF EXECUTIVE SAID THE INVESTMENT DECISION WAS MADE DESPITE CONCERN ABOUT WOODFIBER SUPPLIES A BRITISH COLUMBIA COMMISSION THIS WEEK RECOMMENDED REDUCING LOGGING ON VANCOUVER ISLAND WHERE PORT ALBERNI IS SITUATED 9402110128 940211 PACIFIC TELESIS SPINOFF IN S&P 500 NEW YORK STANDARD & POOR'S CORP SAID IT WOULD INCLUDE PACIFIC TELESIS GROUP AND ITS PACTEL CORP UNIT IN THE S&P 500 INDEX FOLLOWING THE UNIT'S SPINOFF THE RATINGS AGENCY SAID PACIFIC TELESIS SOLD 14 OF THE UNIT IN DECEMBER AND PLANS TO SELL THE REMAINING 86 BY THE END OF THE SECOND QUARTER PACTEL IT ADDED WILL HAVE AN ESTIMATED MARKET VALUE OF 12 BILLION OR 50 OF PACIFIC TELESIS' MARKET VALUE BEFORE THE SPINOFF S&P SAID IT WOULD ANNOUNCE THE REMOVAL OF A COMPANY FROM THE INDEX CLOSER TO THE DATE OF THE SPINOFF 9402110127 940211 WHO'S NEWS FREDERICK'S OF HOLLYWOOD INC FREDERICK'S OF HOLLYWOOD INC LOS ANGELES MERLE A CONKY JOHNSTON WAS NAMED A DIRECTOR OF THIS SPECIALTY RETAILER OF WOMEN'S APPAREL SHE SUCCEEDS HARRIET MELLINGER WHO DIED LAST APRIL MS JOHNSTON 61 YEARS OLD IS A PARTNER WITH TRIC ENTERPRISES A MANAGEMENTCONSULTING FIRM SHE RECENTLY FORMED PREVIOUSLY SHE WAS PRESIDENT OF A BONGRAIN SA DIVISION 9402110126 940211 TECHNOLOGY MCA INC DISCOVERS MEDIUM TO EXPLORE INTERACTIVE SOFTWARE ACCESS IS GAINED WITH STAKE IN SMALL FIRM THAT MAKES CDROM VIDEO GAMES BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL UNIVERSAL CITY CALIF IN ITS FIRST MAJOR INTERACTIVE SOFTWARE INVESTMENT MCA INC SAID IT ACQUIRED A STAKE IN CLOSELY HELD INTERPLAY PRODUCTIONS INC A 10YEAROLD MAKER OF CDROM AND VIDEO GAMES BASED IN IRVINE CALIF THE COMPANIES DIDN'T DISCLOSE TERMS BUT MCA CALLED ITS ACQUISITION A SIGNIFICANT MINORITY STAKE MEANING BETWEEN 20 AND 30 WITH AN OPTION TO ACQUIRE NEARLY 50 INTERPLAY'S ESTIMATED 1993 REVENUE IS ABOUT 60 MILLION AND MCA'S INVESTMENT IS THOUGHT TO BE ABOUT 60 MILLION THE REST OF THE COMPANY IS HELD BY INSIDERS MCA LAST MONTH FORMED UNIVERSAL INTERACTIVE STUDIOS WHICH WILL PUBLISH INTERACTIVE SOFTWARE FOR COMPUTERS AND GAME MACHINES EXECUTIVE VICE PRESIDENT SKIP PAUL WHO HEADS THE UNIT SAID INTERPLAY WILL BE MCA'S MAJOR VEHICLE FOR DEVELOPING SUCH SOFTWARE WE'RE GOING TO PUT OUR RESOURCES INTO IT AND GROW IT BIG HE SAID INTERPLAY PRESIDENT BRIAN FARGO 31 YEARS OLD WHO DROPPED OUT OF JUNIOR COLLEGE TO FOUND THE COMPANY SAID THAT IN THE CURRENT INTERACTIVECRAZED CLIMATE HE'S LISTENED TO A STEADY STREAM OF INVESTMENT BANKERS URGE HIM TO TAKE THE COMPANY PUBLIC SOME SIMILAR COMPANIES HAVE BEEN RAISING MONEY THAT VALUES THEM AT 3TO5 TIMES SALES GOING PUBLIC SEEMS TO BE SOME PEOPLE'S CROWNING JEWEL IN LIFE BUT IT'S NOT MINE I WANTED SOMEBODY TO COME TO THE PARTY WITH MORE THAN JUST MONEY MCA HE SAID WILL PROVIDE NOT ONLY DISTRIBUTION CLOUT AND ACCESS TO MCAOWNED ENTERTAINMENT PROPERTIES AND TALENT BUT EXPERTISE IN COMMERCIAL STORYTELLING IN ORDER FOR OUR MEDIUM TO BECOME BIGGER WE NEED TO LEARN ABOUT SET DESIGN CHARACTER DEVELOPMENT PLOT CAMERA MOVEMENT HE SAID INTERPLAY WHICH IS BEST KNOWN FOR ITS BATTLE CHESS SERIES HAD A RECENT TOPSELLING GAME FOR THE SUPER NINTENDO PLATFORM CLAY FIGHTER IT ALSO OWNS ALL INTERACTIVE RIGHTS TO THE ORIGINAL STAR TREK TELEVISION SERIES IT ALSO HELPS OTHER DEVELOPERS BUNDLE THEIR SOFTWARE WITH HARDWARE MANUFACTURERS WHILE SOME COMPANIES WITH MOVIE AND TELEVISION STUDIOS LIKE TIME WARNER INC SONY CORP AND PARAMOUNT COMMUNICATIONS INC HAVE STARTED LARGE INHOUSE SOFTWARE DIVISIONS AND ACQUIRED STAKES IN MANY OUTSIDE SOFTWARE COMPANIES MCA THUS FAR HAS LIMITED ITS SPENDING TO A 15 STAKE IN 3DO CO A MUCHTOUTED COMPANY FORMED TO SUPPORT A NEW STANDARD FOR INTERACTIVE MULTIMEDIA SYSTEMS THE INTERACTIVE GAME MACHINE THAT SUPPORTS 3DOLICENSED SOFTWARE IS MANUFACTURED BY MCA'S PARENT MATSUSHITA ELECTRIC INDUSTRIAL CO INTERPLAY HAS BEEN A DEVELOPER FOR 3DO AND MR FARGO SAID HE EXPECTS THAT ROLE TO INCREASE SOME HAVE SPECULATED THAT ELECTRONIC ARTS INC'S AGREEMENT THIS WEEK TO ACQUIRE BRODERBUND SOFTWARE INC IN A 400 MILLION STOCK SWAP WILL CAUSE BRODERBUND TO INCREASE ITS SUPPORT FOR 3DO 3DO'S STOCK PRICE HAS FALLEN BACK FROM PREVIOUS HIGHS AMID FEARS ITS MACHINE ISN'T SELLING QUICKLY ENOUGH 9402110125 940211 BUSINESS BRIEF STRIDE RITE CORP SHOEMAKER SAYS SALES NET TO SLUMP IN ITS FIRST QUARTER STRIDE RITE CORP SAID THAT SALES AND EARNINGS FOR THE FISCAL FIRST QUARTER ENDING MARCH 4 WILL TRAIL YEAREARLIER RESULTS BECAUSE OF PROBLEMS AT A NEW DISTRIBUTION CENTER IN KENTUCKY THE CAMBRIDGE MASS SHOEMAKER SAID SALES FOR THE QUARTER ARE EXPECTED TO BE BELOW LAST YEAR'S RESULTS AND EARNINGS ARE EXPECTED TO BE OFF BY MORE THAN 15 IT DECLINED TO BE MORE SPECIFIC IN THE YEAREARLIER QUARTER STRIDE RITE NET INCOME WAS 152 MILLION OR 30 CENTS A SHARE ON REVENUE OF 1408 MILLION THE PROBLEMS WITH THE LOUISVILLE KY FACILITY ARE IRONIC BECAUSE STRIDE RITE WEATHERED A STORM OF CONTROVERSY LAST YEAR WHEN IT ANNOUNCED ITS PLAN TO OPEN THE PLANT STRIDE RITE WHICH HAD A LONG HISTORY OF PROMOTING SOCIAL RESPONSIBILITY CLOSED AN INNERCITY DISTRIBUTION CENTER IN BOSTON FIRING 175 WORKERS IN LATE TRADING STRIDE RITE STOCK WAS DOWN 625 CENTS AT 1575 9402110124 940211 INTERNATIONAL FORD AGGRESSIVELY INCREASES ITS VISIBILITY IN JAPAN AS US BRANDS MAKE INROADS BY JENNIFER CODY AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AT A TIME OF UNPRECEDENTED OPPORTUNITY FOR US CAR MAKERS IN JAPAN FORD MOTOR CO IS PULLING OUT ALL THE STOPS AMERICA'S NO 2 AUTO MAKER IS BLITZING JAPAN'S CONSUMERS WITH A MASSIVE NEW AD CAMPAIGN TOUTING MY FIRST FORD SOON FORD WILL MARKET RIGHTHAND DRIVE CARS TO MATCH THE JAPANESE STANDARD AND IN THE MOST BRAZEN STATEMENT OF ITS PRESENCE FORD IS PUTTING ITS OWN NAME ON A JAPANESE DEALER NETWORK A FIRST FOR A US CAR MAKER NOW IS A GOOD TIME FOR THE NEW INVADERS TO ATTACK THE MARKET WHEN THOSE JAPANESE AUTOINDUSTRY GIANTS ARE SEEMING TO LOSE THEIR DIRECTION AND CONFIDENCE SAYS KONEN SUZUKI A FORMER TOYOTA MOTOR CORP MANAGING DIRECTOR WHO IS PRESIDENT OF FORD'S JAPAN UNIT THIS YEAR MR SUZUKI PLANS TO TRIPLE JAPANESE SALES OF FORDS MADE OVERSEAS TO 15000 VEHICLES BY THE END OF THE DECADE HE ENVISIONS DRASTIC EXPANSION OF JAPAN'S FORD DEALERSHIPS UP TO 1000 OUTLETS TRIPLE TODAY'S NUMBER SELLING A TOTAL OF 200000 FORDS ANNUALLY FORD'S JAPAN PUSH IS WELLTIMED DETROIT'S AUTO MAKERS ARE SUDDENLY OUTPERFORMING THEIR JAPANESE COMPETITORS FINANCIALLY LENDING THE BIG THREE NEW CREDIBILITY WHILE DOMESTIC MAKERS STUMBLE RECENT US MODELS ARE GETTING GLOWING PRESS COVERAGE CURRENCY TRENDS ALSO ARE HELPING THE AMERICANS IN RECESSIONARY JAPAN FORD SAYS IT HAS CUT PRICES 25 SINCE 1989 AND WHEN CHRYSLER CORP CUT PRICES ON ITS JEEP CHEROKEE SALES ALMOST TRIPLED IN JAPAN DEMONSTRATING THAT JAPANESE CONSUMERS DO INDEED HAVE AN APPETITE FOR FOREIGN PRODUCTS THE MARKETING DRIVE ALSO COMES AT A TIME WHEN US OFFICIALS ARE DIGGING IN THEIR HEELS IN TRADE TALKS TO OPEN THE JAPANESE MARKET YET FURTHER TO AMERICAN GOODS AND WHILE FORD'S SALES IN JAPAN LAG BEHIND THOSE OF GENERAL MOTORS CORP AND CHRYSLER WHICH IS HELPED BY ITS POPULAR FOURWHEEL DRIVE VEHICLES EXPERTS SAY FORD IS IN THE BEST POSITION TO EXPLOIT THE NEW OPPORTUNITIES IN CONJUNCTION WITH MAZDA MOTOR CORP FORD'S 25OWNED AFFILIATE THE COMPANY OWNS AUTORAMA A STRING OF 286 JAPANESE DEALERSHIPS IN CONTRAST GM AND CHRYSLER SELL THROUGH LOCAL PARTNERS' OUTLETS LAST YEAR FORD'S SALES OF ITS USMADE CARS ROSE 50 TO MORE THAN 5000 VEHICLES WHILE AUTORAMA DEALERS SOLD ROUGHLY 39000 FORDMARQUE CARS MADE BY MAZDA WITH ITS CURRENT MOVES FORD IS GETTING BOLDER THAT'S ESPECIALLY REFLECTED IN ITS DECISION THIS WEEK TO TAKE DOWN THE AUTORAMA SIGNS AND REPLACE THEM WITH ONES THAT SAY FORD TETSUHIKO NAKAMURA DIRECTOR OF AUTORAMA'S MAIN OFFICE IN TOKYO SAYS HE SEES PROOF OF FORD'S PRESENCE IN GROWING TRAFFIC THROUGH HIS STORES FORD IS FORMING MORE OF AN IDENTITY HERE HE SAYS IT HAS NEW CHARACTER THE BOLDER CHARACTER CAN ALSO BE SEEN IN FORD'S ADS WHICH ATTACK PERCEPTIONS THAT ITS CARS DON'T MEASURE UP TO THE JAPANESE AND CLAIM AN EDGE IN COMFORT AND SAFETY SAFETY IS SELDOM PROMOTED BY JAPANESE COMPETITORS THOUGH IT HAS BEEN USED BY OTHER FOREIGN LINES SUCH AS THAT OF MERCEDESBENZ AG A UNIT OF GERMANY'S DAIMLERBENZ AG OUR PRODUCT'S REAL STRENGTH IS THAT IT IS MUCH BETTER THAN PEOPLE'S PERCEPTIONS SAYS MR SUZUKI WHO COMMISSIONED WPP GROUP'S J WALTER THOMPSON UNIT AND JAPANESE ADVERTISING GIANT DENTSU INC TO DEVELOP THE NEW CAMPAIGN THE JAPANESE PRINT ADS FOR FORD'S AMERICANMADE TAURUS AND EXPLORER MODELS PUSH THE IDEA OF SPACE TWO FAMILIES ARE WELCOME BECKONS THE CAPTION FOR THE TAURUS STATION WAGON IT'S A REVOLUTIONARY PROPOSAL IN THIS CRAMPED SOCIETY AND APPARENTLY A WELCOME ONE WAGONS MAKE UP ABOUT 90 OF TAURUS SALES HERE LAST MONTH FORD BEGAN TELEVISION ADS FIVE EVENINGS A WEEK AND PLANS TO INCREASE THE FREQUENCY BEFORE THE DEBUT OF NEW MODELS IN THE SPRING THE ADS WHICH SHOW DUAL AIRBAGS AND BEAR THE SLOGAN MY FIRST FORD ARE AN ATTEMPT TO MAKE JAPANESE PEOPLE FEEL MORE COMFORTABLE ABOUT BUYING A FORD SAYS JUN NAKANO A DENTSU ACCOUNT EXECUTIVE AFTER ALL HE ADDS MOST JAPANESE ARE IN FACT BUYING A FORD FOR THE FIRST TIME ALL THE FUSS HAS MADE PEOPLE LIKE HIROSHI ITO CURIOUS HE HAS DRIVEN A NISSAN MODEL FOR THE PAST 10 YEARS BUT RECENTLY DROPPED INTO AN AUTORAMA DEALERSHIP NEAR TOKYO'S FISHMARKET DISTRICT LOOKING TO BROWSE THROUGH TAURUS BROCHURES I'VE LIKED THE TAURUS FOR A LONG TIME SAYS THE 47YEAROLD FISH DISTRIBUTOR I LIKE THE DESIGN FIRST OF ALL STRETCHING HIMSELF OUT LUXURIOUSLY IN FRONT OF A SALES DESK HE NOTES YOU CAN DO THIS IN A TAURUS YOU CAN'T DO IT IN A JAPANESE CAR THE TAURUS PRICE IS ALSO A SELLING POINT HE ADDS RIGHT NOW IT'S CHEAP TO BUY AMERICAN HE SAYS IN FACT AT 313 MILLION YEN 28874 THE TAURUS WAGON IS SIGNIFICANTLY LESS EXPENSIVE THAN THE COMPETING TOYOTA CAMRY WHICH RINGS IN AT 33 MILLION YEN 30442 TRADE PRESSURES GIVE FORD A LEG UP TOO THE US GOVERNMENT HAS PRESSED JAPANESE AUTO MAKERS TO LET THEIR DEALERS SELL US CARS TOKYOAREA NISSAN MOTOR CO DEALERS RECENTLY SAID THEY WANT TO CARRY FORD VEHICLES AND FORD SAYS IT MAY TAKE THEM UP ON THE OFFER THE CHANGING ENVIRONMENT COULD SEND A MESSAGE TO OTHER US CAR MAKERS IS THIS AN OPPORTUNITY WELL YOU BET IT IS SAYS STEPHEN USHER AN ANALYST WITH KLEINWORT BENSON INTERNATIONAL INC AMERICANS SHOULD BE IN JAPAN NOW ON TOP OF CURRENCYRELATED ADVANTAGES HE SAYS JAPANESE ATTITUDES TOWARDS USMADE CARS HAVE BEEN CHANGING AS WELL THE FACT THAT BOTH COMPANIES FORD AND MAZDA ARE WILLING TO COME OUT OF THE CLOSET AND SAY HEY WE SELL FORDS HERE' IS AN INDICATION OF THE IMPROVING PERCEPTION HE SAYS DETROIT NO LONGER HAS ANYTHING TO BE ASHAMED OF 9402110123 940211 CD RADIO SEEKS AUTO AUDIENCE FOR BROADCASTS COMPANY PLANS OFFERING TO FUND DEVELOPMENT OF NEW SATELLITE SERVICE BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FLEDGLING RADIO BROADCASTING COMPANY IS PROPOSING TO CARVE OUT A NICHE ON THE ENTERTAINMENT HIGHWAY SUBSCRIPTION MUSIC PROGRAMMING FOR THE CAR RADIO WASHINGTON DCBASED CD RADIO INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO RAISE ABOUT 50 MILLION IN AN INITIAL PUBLIC OFFERING BASED ON ITS SATELLITE RADIO SIGNAL CONCEPT THE COMPANY IS PROPOSING TO SELL 45 MILLION SHARES AT AN ESTIMATED 10 TO 12 A SHARE WHICH WOULD GIVE THE COMPANY A MARKET VALUE OF 120 MILLION TO 144 MILLION BASED ON 12 MILLION SHARES OUTSTANDING SEIDLER COS AND FIRST MARATHON SECURITIES LTD ARE UNDERWRITERS THE COMPANY ENVISIONS LAUNCHING ITS CD RADIO SYSTEM BY MID1997 THE SYSTEM INCLUDES A SILVERDOLLARSIZED ANTENNA THAT WILL PICK UP 30 CHANNELS OF DIGITAL COMPACT DISKQUALITY MUSIC FROM JAZZ TO CLASSICAL ON A SPECIAL SBAND RADIO THE COMMERCIALFREE CHANNELS WOULD RUN 24 HOURS A DAY NATIONWIDE AND CD RADIO SAYS IT LATER WOULD ADD AS MANY AS 20 CHANNELS OF OTHER FORMATS SUCH AS ALL NEWS SPORTS OR TALK PROGRAMS THE PROSPECTUS SAYS CD RADIO PLANS TO USE PROCEEDS FROM THE OFFERING FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING MARKET RESEARCH AS WELL AS 1 MILLION TO DEVELOP THE SPECIAL INTEGRATED CIRCUIT NEEDED TO RECEIVE THE DIGITAL RADIO SATELLITE SIGNALS BUT CONSIDERABLE HURDLES REMAIN THE SERVICE REQUIRES FEDERAL COMMUNICATIONS COMMISSION APPROVAL AND THE FILING SAYS CD RADIO WOULD NEED TO RAISE ABOUT 494 MILLION TO BUILD AND LAUNCH TWO NECESSARY SATELLITES AND OPERATE THE SYSTEM FOR THE FIRST YEAR THE FILING CAUTIONS THAT A SIGNIFICANT DELAY IN DEVELOPING BUILDING LAUNCHING AND BEGINNING OPERATION COULD HAVE A MATERIAL ADVERSE EFFECT ON THE COMPANY MOREOVER IT WARNS THERE CAN BE NO ASSURANCE THAT THE CD RADIO SYSTEM WILL ACTUALLY FUNCTION AS CURRENTLY CONTEMPLATED CD RADIO HAS A CONTRACT FOR A LORAL CORP UNIT TO BUILD TWO SATELLITES FOR THE SERVICE WHICH WOULD BE AVAILABLE FOR ABOUT 10 A MONTH SUBSCRIBERS WOULD HAVE TO PURCHASE A SOCALLED SBAND RADIO CD RADIO SAYS THE SBAND RADIOS WOULD RESEMBLE TODAY'S AM/FM RECEIVERS AND LIKELY WOULD INCLUDE THE AM/FM BANDS AS WELL AS A DIGITAL DISPLAY SHOWING THE CD RADIO CHANNEL NUMBER SONG TITLE RECORDING ARTIST ALBUM TITLE AND RECORD LABEL SBAND RADIOS ARE EXPECTED TO BE SOMEWHAT MORE EXPENSIVE THAN TRADITIONAL RADIOS THE FILING SAYS NO SUCH DEVICES HAVE YET BEEN BUILT FOR COMMERCIAL SALE THE FILING SAYS CD RADIO IS SEEKING TO CLAIM A FOOTHOLD IN THE PROPOSED DIGITAL AUDIO RADIO SERVICE THAT THE FCC IS CONSIDERING THE FILING SAYS THE NATIONAL ASSOCIATION OF BROADCASTERS HAS OPPOSED GRANTING THE FCC LICENSE CD RADIO IS ONE OF FOUR COMPANIES SEEKING AN FCC LICENSE TO OPERATE SATELLITE RADIO TECHNOLOGY THE FILING SAYS THE FCC APPROVAL IS LIKELY BEFORE THE SATELLITES' EXPECTED LAUNCH BETWEEN DECEMBER 1996 AND JUNE 1997 THE DATES IT HAS RESERVED WITH ARIANESPACE THE EUROPEAN SATELLITELAUNCHING CONSORTIUM SINCE ITS FORMATION IN 1990 CD RADIO HAS SPENT ABOUT 10 MILLION DEVELOPING ITS PROPOSAL THE COMPANY EXPECTS TO REPORT LOSSES THROUGH AT LEAST THE FIRST FULL YEAR OF CD RADIO BROADCASTS IN 1993 THE COMPANY HAD A NET LOSS OF 66 MILLION SINCE 1990 IT HAS ACCUMULATED A 95 MILLION DEFICIT LAST APRIL CD RADIO PURCHASED SKY HIGHWAY RADIO CORP A COMPETING APPLICANT FOR 2 MILLION TAKING A 2 MILLION CHARGE AGAINST ITS 1993 RESULTS 9402110122 940211 BUSINESS BRIEF OWENS & MINOR INC ACQUISITION OF STUART MEDICAL MOVES ANOTHER STEP CLOSER OWENS & MINOR INC AND STUART MEDICAL INC SAID THE JUSTICE DEPARTMENT COMPLETED ITS ANTITRUST REVIEW OF THE COMPANIES' PROPOSED COMBINATION WITHOUT REQUESTING MORE INFORMATION RICHMOND VABASED OWENS & MINOR THE NATION'S SECONDLARGEST DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES IN DECEMBER SAID IT PLANNED TO PURCHASE CLOSELY HELD STUART MEDICAL GREENSBURG PA FOR 402 MILLION IN CASH AND 115 MILLION OF CONVERTIBLE PREFERRED STOCK THE PURCHASE OF STUART MEDICAL ALSO A DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES IS EXPECTED TO CLOSE SOON AFTER AN OWENS & MINOR SHAREHOLDER VOTE THAT IS EXPECTED TO BE HELD IN APRIL 9402110121 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE IN THE MIDDLE BY FOCUSING ON THE PLUMBING OF CYBERSPACE GEOFFREY GOODFELLOW IS SHAPING THE WIRELESS FUTURE BY DON CLARK IT WAS AN IDYLLIC MOMENT FOR GEOFFREY GOODFELLOW HE WAS SITTING ON THE BEACH IN HAWAII READING AND ANSWERING ELECTRONIC MAIL STORED IN CALIFORNIA IT WAS ALSO AN EPIPHANY THE YEAR WAS 1975 AND MR GOODFELLOW THEN A 19YEAROLD HACKER AND HIGHSCHOOL DROPOUT HAD GOTTEN HIS FIRST GLIMPSE OF THE WIRELESS FUTURE HE HAS SINCE WORKED HIS WAY INTO THE MIDDLE OF THAT WORLD TODAY AS THE CHAIRMAN AND FOUNDER OF RADIOMAIL CORP MR GOODFELLOW IS SHAPING THE TECHNOLOGY'S EVOLUTION PROVIDING A UNIVERSAL LINK THROUGH WHICH PEOPLE ON ALMOST ANY COMBINATION OF WIRELESS AND WIRED NETWORKS CAN COMMUNICATE WE'VE BEEN CONCENTRATING ON THE PLUMBING OF CYBERSPACE MR GOODFELLOW SAYS SO FAR NO ONE REALLY KNOWS HOW TO DO THAT AS WELL AS WE DO MR GOODFELLOW WHO GOT HIS FIRST COMPUTING JOBS FROM SYSTEMS MANAGERS IMPRESSED BY HIS UNAUTHORIZED INTRUSIONS INTO THEIR MACHINES IS A SLENDER 37YEAROLD WITH SHAGGY BLOND HAIR AND A PENCHANT FOR SURFERSTYLE CLOTHES HE STILL LIKES TO RUN LIGHTING EFFECTS AT SAN FRANCISCO DANCE CLUBS YET HIS COMPANY WITH JUST 30 EMPLOYEES FEWER THAN 2000 CUSTOMERS AND LESS THAN 2 MILLION IN REVENUE LAST YEAR PROVIDES ONE OF THE MOST ADVANCED SERVICES IN THE EMERGING MARKET FOR PORTABLE DATA TRANSMISSION RADIOMAIL BASED IN SAN MATEO CALIF IS A SORT OF HIGHTECH ANSWERING SERVICE THAT TAKES ELECTRONICMAIL MESSAGES FOR ITS CUSTOMERS AND MAKES SURE THEY GET THEM IT DOESN'T HAVE A WIRELESS TRANSMISSION SYSTEM OF ITS OWN RATHER IT PACKAGES THE HARDWARE AND SOFTWARE NEEDED TO SEND AND RECEIVE WIRELESS MESSAGES ON PORTABLE COMPUTERS AND ITS OWN COMPUTERS ROUTE CUSTOMERS' MESSAGES TO AND FROM ANY COMBINATION OF WIRELESS CARRIERS CORPORATE NETWORKS ONLINE SERVICES AND THE INTERNET WHICH OFFERS LINKS BETWEEN JUST ABOUT EVERY PUBLIC AND PRIVATE NETWORK RADIOMAIL WAS THE PIONEER IN FORGING THESE KINDS OF CONNECTIONS BUT IT'S NO LONGER ALONE LAST SEPTEMBER AMERICAN TELEPHONE & TELEGRAPH CO BEGAN OFFERING WIRELESS MESSAGING THROUGH A SERVICE CALLED EASYLINK WHICH OFFERS THE SAME BREADTH OF CONNECTIONS TO COMPUTER NETWORKS AS THE MARKET GROWS OTHER COMPANIES ARE SURE TO JUMP IN IN FACT THE COMPANY LAST MONTH SHUFFLED TOP MANAGERS AND IS MODIFYING ITS MARKETING MESSAGE TO COUNTER INCREASED COMPETITION MR GOODFELLOW WHO SAYS RADIOMAIL IS LOSING MONEY RIGHT ON SCHEDULE AND WON'T BE PROFITABLE UNTIL LATE THIS YEAR AT THE EARLIEST ARGUES THAT RADIOMAIL WILL RETAIN IMPORTANT ADVANTAGES AMONG THEM HE IS COUNTING ON BEING QUICKEST TO TIE IN TO EVERY PROMISING WIRELESS COMMUNICATIONS TECHNOLOGY THAT POPS UP INCLUDING COMING DIGITALCELLULAR AND SATELLITETRANSMISSION SYSTEMS WHAT GEOFF HAS SET UP IS THE SWITZERLAND OF WIRELESS COMMUNICATIONS SAYS PAUL SAFFO AN ANALYST WITH THE INSTITUTE FOR THE FUTURE A THINK TANK IN MENLO PARK CALIF IT'S A TINY COUNTRY THAT IS NEUTRAL GROUND RADIOMAIL NOW ROUTES MESSAGES THROUGH DATAONLY RADIO NETWORKS OPERATED BY RAM MOBILE DATA OWNED BY BELLSOUTH CORP OF ATLANTA AND RAM BROADCASTING CORP OF WOODBRIDGE NJ AND ARDIS A JOINT VENTURE OF MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP USERS PAY RADIOMAIL 89 A MONTH FOR UNLIMITED MESSAGES A ONETIME 99 SETUP FEE AND 49 FOR SOFTWARE THEY ALSO MUST BUY A RADIO MODEM CURRENT MODELS COST ABOUT 775 AND ARE ABOUT THE SIZE OF A POCKET CELLULAR PHONE THOUGH MUCH SMALLER MODELS ARE DUE OUT THIS YEAR RADIOMAIL'S SERVICE WORKS WITH MODEMS MADE BY MOTOROLA AND ERICSSON GE MOBILE COMMUNICATIONS INC A VENTURE OF GENERAL ELECTRIC CO AND TELEFON AB LM ERICSSON OF SWEDEN TO SEND A MESSAGE TO SAY MR GOODFELLOW FROM YOUR WIRELESS DEVICE YOU WOULD TAP IN HIS ADDRESS GEOFF@RADIOMAILNET AND HIT THE SEND BUTTON THE MESSAGE WOULD MOVE OVER RADIO WAVES INTO THE ARDIS OR RAM NETWORKS WHICH HAVE TRANSMISSION TOWERS IN MOST US CITIES NEXT PHONE LINKS WOULD CARRY IT TO RADIOMAIL'S SWITCHING CENTER A ROOM AT HEADQUARTERS PACKED WITH WIRES AND WORKSTATIONS FROM THERE THE PROCESS WOULD BE REVERSED THE MESSAGE WOULD BE ROUTED OUT FIRST OVER PHONE LINES AND THEN OVER RAM OR ARDIS TO MR GOODFELLOW'S PALMTOP COMPUTER RADIOMAIL HAS SPAWNED A COMMUNITY OF USERS WHO ZAP MESSAGES BACK AND FORTH TO SPEED DECISION MAKING NETWORK COMPUTING MAGAZINE LAST MARCH SET UP ACCOUNTS FOR NINE EDITORS WHO HAVE OFFICES AROUND THE COUNTRY SAYS GARY BOLLES ITS EDITOR IN CHIEF ALAN REITER EDITOR OF MOBILE DATA REPORT A NEWSLETTER IN ALEXANDRIA VA SAYS I RARELY HAVE TO WORRY ABOUT DEALING WITH A CANTANKEROUS HOTEL PHONE SYSTEM SENDING A STORY IS BASICALLY AS EASY AS PUSHING THE SEND BUTTON PERHAPS THE HEAVIEST USER IS JAMES OPFER A WIRELESS COMMUNICATIONS CONSULTANT WHO USES RADIOMAIL TO ESCAPE THE OFFICE ALTOGETHER A FORMER US AIR FORCE COLONEL WHO WORKED ON ELECTRONIC COMMUNICATIONS IN THE REAGAN WHITE HOUSE MR OPFER RECEIVES 3500 MESSAGES A MONTH AND SENDS ABOUT THAT MANY BY USING THE SERVICE TO PICK THE BRAINS OF HIS INFORMAL NETWORK OF EXPERTS HE SAYS HE CAN GET CLIENTS FAST ANSWERS FROM VIRTUALLY ANYWHERE PEOPLE PAY ME FOR BEING THERE IN NEAR REAL TIME' MR OPFER WRITES IN A RADIOMAIL NOTE THIS IS THE ULTIMATE IN WHAT I CALL THE EVOLUTION TO PEOPLECENTRIC' COMPUTING BECAUSE THE POWER TO SEND AND RECEIVE DATA FOLLOWS USERS RATHER THAN BEING TIED TO A PHONE LINE SOMEWHERE THE SERVICE HAS LIMITS RADIOMAIL MESSAGES CAN'T BE LONGER THAN EIGHT PAGES CUSTOMERS TYPICALLY USE IT FOR SHORT NOTES ARDIS AND RAM DON'T REACH MANY RURAL AREAS AND ARE RELATIVELY SLOW RAM FOR EXAMPLE HAS A THEORETICAL CAPACITY OF 8000 BITS OF DATA A SECOND EQUAL TO ABOUT 200 WORDS BUT IT SAYS MOST MESSAGES MOVE AT ABOUT ONETHIRD THAT RATE AT THE SPEED OF OLDER TELEPHONE MODEMS ED FORMAN RADIOMAIL'S VICE PRESIDENT OF MARKETING NEVERTHELESS SAYS IT USUALLY DELIVERS ANY MESSAGE WITHIN 28 SECONDS MOST HIGHTECH EXECUTIVES BEGAN THINKING ABOUT SUCH SERVICES IN THE 1980S MR GOODFELLOW'S VISIONS OF COMMUNICATING WITHOUT WIRES STARTED MUCH EARLIER WHEN HE READ A POPULAR SCIENCE ARTICLE ON CELLULAR PHONES THAT APPEARED IN 1972 A DECADE BEFORE THAT TECHNOLOGY BEGAN TO SPREAD AT ABOUT THE SAME TIME HIS MOTHER AND STEPFATHER BOUGHT HIM A TELETYPE TERMINAL TO ENCOURAGE HIS NASCENT INTEREST IN COMPUTERS THEY ALSO HELPED HIM GET A COMPUTER ACCOUNT FOR NIGHTS AND WEEKENDS AT A SILICON VALLEY DATASERVICES COMPANY AFTER A MANAGER NOTICED HIS WANDERINGS THROUGH ITS SYSTEMS THE COMPANY HIRED HIM FOR A SUMMER JOB IN 1973 WHILE HE WAS THERE A COWORKER GAVE HIM A DIALUP NUMBER FOR ARPANET THE INTERNET'S PREDECESSOR SET UP BY THE PENTAGON'S ADVANCED RESEARCH PROJECTS AGENCY OR ARPA HE CONNECTED TO IT FROM HIS HOME TERMINAL MR GOODFELLOW ALSO TAPPED INTO SRI INTERNATIONAL A RESEARCH AND CONSULTING FIRM ORIGINALLY SPUN OFF FROM STANFORD UNIVERSITY TO PURSUE DEFENSE RESEARCH IN THOSE DAYS AN OUTSIDER LOGGING ON PROBABLY WAS JUST INTERESTED IN COMPUTERS HACKERS WEREN'T YET VILLAINS HE SEEMED LIKE A GOODHEARTED BRIGHT SOUL SAYS DAN LYNCH WHO WAS MANAGING SRI'S MACHINES THEN HE GAVE MR GOODFELLOW A PARTTIME JOB BECAUSE HE WAS BREAKING INTO MY COMPUTERS MR GOODFELLOW STARTED AT SRI AS WHAT HE CALLS AN ASSISTANT SYSTEMS JANITOR RESPONSIBLE FOR BURPING AND DIAPERING ITS MAINFRAME COMPUTERS HE ALSO ACCELERATED HIS SELFEDUCATION PROCESS ON NETWORKS TAPPING INTO SCORES OF COMPUTERS AROUND THE COUNTRY AND LEARNING THEIR WORKINGS KNOWLEDGE HE WOULD USE TO MAKE RADIOMAIL WORK HE EVENTUALLY OBTAINED ACCOUNTS ON ABOUT 80 OF THE COMPUTERS ON ARPANET ONE FRIEND JOKED THAT HIS ELECTRONIC ADDRESS SHOULD BE GEOFF@EVERYWHERE NO ONE KNEW GEOFF GOODFELLOW WAS A KID SAYS MR LYNCH NOW CHAIRMAN OF INTEROP CO A MOUNTAIN VIEW CALIF COMPANY THAT ORGANIZES COMPUTERNETWORKING CONFERENCES HE JUST TROLLED THE NET HE NEVER SLEPT WHEN HE FOUND SOMETHING THAT WAS GOOFY HE WOULD FIX IT OR FIND SOMEONE WHO COULD FIX IT I CALLED HIM THE ULTIMATE DEBUGGER MR GOODFELLOW'S COMPUTING HABIT DIDN'T HELP HIS SCHOOLING IN 1975 HE DROPPED OUT OF HIGH SCHOOL AND TOOK A FULLTIME JOB AT SRI HE ALSO LEARNED OF AN ARPAFUNDED PROJECT AT THE UNIVERSITY OF HAWAII THAT SET UP ONE OF THE FIRST CIVILIAN RADIO NETWORKS FOR TRANSMITTING DATA THE CONCEPT SO INTRIGUED MR GOODFELLOW THAT HE TOOK A VACATION IN HAWAII LUGGING ALONG A SUITCASESIZED COMMUNICATIONS TERMINAL THAT SRI HELPED TO ASSEMBLE THAT WAS MY FIRST WIRELESS EXPERIENCE MR GOODFELLOW SAYS DESPITE HIS LACK OF DIPLOMAS MR GOODFELLOW WORKED HIS WAY UP INTO COMPUTERRESEARCH JOBS AT SRI AND RECEIVED SECURITY CLEARANCES FOR GOVERNMENT CONTRACTS AND WITH HIS NETWORK KNOWLEDGE AND HACKER CONTACTS IT WAS NATURAL FOR MR GOODFELLOW TO MOVE INTO COMPUTER SECURITY WE USED HIM QUITE A BIT TO FIND WHERE THESE HACKERS WERE BREAKING INTO OUR SYSTEM SAYS STEVAN MILUNOVIC SRI'S DIRECTOR OF INFORMATION SYSTEMS AFTER 12 YEARS HE LEFT SRI FOR THE ENTREPRENEURIAL WORLD A CELLULARPHONE STARTUP FAILED BUT IN 1988 HE BORROWED 50000 FROM HIS PARENTS TO FORM WHAT WOULD BECOME RADIOMAIL THE COMPANY STARTED IN ONE ROOM OF HIS MENLO PARK HOUSE AND GRADUALLY PACKED THE DWELLING WITH 25 COMPUTERS 50 PHONE LINES AND RELATED PARAPHERNALIA RADIOMAIL FINALLY MOVED TO AN OFFICE PARK LAST YEAR BUT HAS TRIED TO KEEP A HOMEY ATMOSPHERE LUNCHES ARE MADE IN A COMPANY KITCHEN BY PRISCILLA BAIRD WHO HOLDS THE TITLE OF CONCIERGE AND TRIES TO MAKE SURE EMPLOYEES DON'T NEGLECT NUTRITION TO EXPAND THE COMPANY MR GOODFELLOW BEGAN SEEKING OUTSIDE FUNDING IN 1992 THOUGH HE EVENTUALLY RAISED 3 MILLION THE SEARCH WAS FRUSTRATING VENTURE CAPITALISTS HIS FIRST TARGETS ARE REALLY NOT RISKTAKERS MR GOODFELLOW SAYS THEY ARE MORE CONSERVATIVE THAN BANKERS AFTER SOME EARLY REJECTIONS MR GOODFELLOW BEEFED UP RADIOMAIL'S MANAGEMENT HE FIRED HIMSELF AS CEO IN LATE 1992 AND BROUGHT IN WILLIAM HIPP WHO HAD MANAGED ADVANCEDTECHNOLOGY PROJECTS FOR THE AIR FORCE AND BEEN PRESIDENT OF DOWTY NETWORK SYSTEMS INC A NOWDEFUNCT MAKER OF LOCALAREA NETWORKS VENTURE CAPITALISTS STILL DIDN'T BITE THINGS ALSO DIDN'T GEL WITH AT&T WHICH AT ONE POINT LOOKED LIKE A POTENTIAL PARTNER BEFORE GOING ON TO START EASYLINK VENTURE CAPITALISTS SAY THE LIKELIHOOD OF SUCH COMPETITION WAS A KEY REASON THEY WERE LEERY OF RADIOMAIL ALONG WITH A SUSPICION THAT A BIG MARKET WAS A FEW YEARS AWAY GEOFF'S A GREAT GUY AND WHAT HE'S GOT IS PRETTY INTRIGUING SAYS MICHAEL MORITZ A PARTNER AT SEQUOIA CAPITAL IN MENLO PARK CALIF WHICH WAS APPROACHED BY RADIOMAIL BUT RIGHTLY OR WRONGLY WE THOUGHT FIVE YEARS FROM NOW HE WOULD BE THOUGHT OF AS A VERY IMAGINATIVE FOOTNOTE TO THE WIRELESS BUSINESS DESPITE THE NAYSAYERS MR GOODFELLOW LAST APRIL ATTRACTED 2 MILLION FROM MOTOROLA AND 1 MILLION FROM 2M INVEST A DANISH INVESTMENT FIRM MOTOROLA SAID IT CONSIDERED THE COMPANY 12 TO 18 MONTHS AHEAD OF THE REST OF THE INDUSTRY BUT FURTHER CHANGES WERE NEEDED AT RADIOMAIL MR HIPP SAYS HE SPENT MOST OF HIS TIME NEGOTIATING IMPORTANT PARTNERSHIPS WHILE INTERNAL OPERATIONS SUFFERED ONE PROBLEM WAS DELAYS IN INTRODUCING NEW MESSAGING SOFTWARE INCLUDING A VERSION THAT WORKS WITH MICROSOFT CORP'S POPULAR WINDOWS OPERATING SYSTEM IN JANUARY MR HIPP RELINQUISHED THE PRESIDENT AND CHIEF EXECUTIVE POSITIONS OPTING TO START A SPINOFF COMPANY TO EXPLORE FOREIGN SALES OF THE COMPANY'S SERVICE WHILE RADIOMAIL SEARCHES FOR A NEW CEO TWO VICE PRESIDENTS OLIVIA DILLAN AND ALAN BERINGSMITH ARE RUNNING DAYTODAY OPERATIONS MR GOODFELLOW REMAINS CHAIRMAN AND CHIEF TECHNICAL OFFICER RADIOMAIL ALSO CHANGED ITS MARKETING STRATEGY THE COMPANY HAD BILLED ITSELF AS SELLING WIRELESS ELECTRONIC MAIL IN DOING SO MR GOODFELLOW SAYS IT HAS FOUND THAT USERS EXPECT TO BE ABLE TO DO EVERYTHING THEY CAN WITH A MODEM AND A LAPTOP COMPUTER INCLUDING ATTACHING SPREADSHEETS AND OTHER FILES TO MESSAGES MANY CUSTOMERS AREN'T PARTICULARLY INTERESTED IN IMMEDIACY THEY SIMPLY WANT A WIRELESS SYSTEM THAT ALLOWS THEM TO GET THEIR MESSAGES WHENEVER THEY LOG ON WHICH MIGHT BE HOURS AFTER A MESSAGE IS SENT SO RADIOMAIL NOW PLANS TO COMPARE ITS SERVICE TO ELECTRONIC POSTIT NOTES MR GOODFELLOW SAYS TO APPEAL TO PEOPLE WHO WANT TO GET SHORT MESSAGES INSTANTLY A SUBSCRIBER'S MESSAGES APPEAR ON A PORTABLE DEVICE AS SOON AS IT IS SWITCHED ON WITHOUT THE NEED TO LOG ON TO A REMOTE SYSTEM ANOTHER RADIOMAIL SELLING POINT IS THAT ITS PRICING DOESN'T VARY WITH THE NUMBER OF MESSAGES OR THE DISTANCE THEY TRAVEL FOR FREQUENT USERS THIS IS CHEAPER THAN PAYING EASYLINK'S PERMESSAGE CHARGES I DON'T HAVE TO WORRY ABOUT LONGDISTANCE CHARGES AT ALL SAYS MR BOLLES OF NETWORK COMPUTING RADIOMAIL ALSO HAS A SLIGHTLY BROADER GEOGRAPHICAL REACH BECAUSE IT USES BOTH THE ARDIS AND RAM RADIO NETWORKS WHILE EASYLINK USES ONLY RAM AND MR GOODFELLOW'S DETERMINATION TO USE ANY AND ALL WIRELESS CARRIERS MAY BOTH EXTEND RADIOMAIL'S REACH AND SAVE USERS MONEY METRICOM INC BASED IN LOS GATOS CALIF IS SETTING UP A WIRELESS NETWORK EXPECTED TO OFFER UNLIMITED MESSAGING FOR AS LOW AS 295 A MONTH RADIOMAIL PLANS TO USE IT AND PASS THE SAVINGS ALONG MR REITER OF MOBILE DATA REPORT SEES ONE GAP IN RADIOMAIL'S SERVICE AS MESSAGES PROLIFERATE SOME CUSTOMERS WILL WANT SOFTWARE THAT KNOWS TO SEND AN URGENT MESSAGE FROM THE PRESIDENT OF THE COMPANY BUT TO HOLD FOR LATER RETRIEVAL THINGS LIKE THE CAFETERIA LUNCH MENU RADIOMAIL EXPECTS TO OFFER SUCH FILTERING SOFTWARE BUT MR REITER SAYS SOME COMPETITORS HAVE A HEAD START ON THE TECHNOLOGY RADIOMAIL HAS BEEN THE LEADER IN MESSAGING AND HAS DRAMATICALLY HELPED TO PUBLICIZE THIS INDUSTRY MR REITER SAYS THEY ARE A SMALL COMPANY THAT HAS MADE A MAJOR IMPACT BUT THEIR LEAD IS DECREASING MR CLARK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9402110120 940211 EQUITABLE UNIT'S RATINGS STUDIED NEW YORK MOODY'S INVESTORS SERVICE PLACED THE FINANCIALSTRENGTH RATINGS OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND ITS EQUITABLE VARIABLE LIFE INSURANCE CO UNIT UNDER REVIEW FOR A POSSIBLE UPGRADE THE RATINGS AGENCY SAID IT WILL FOCUS ON IMPROVING FINANCIAL FUNDAMENTALS AND A FAVORABLE OUTLOOK AT THE COMPANY'S INDIVIDUAL LIFEINSURANCE OPERATIONS EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF INSURANCE CONCERN EQUITABLE COS REPORTED STATUTORY ASSETS OF ABOUT 47 BILLION AS OF SEPT 30 EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND EQUITABLE VARIABLE LIFE INSURANCE CO HAVE A SINGLEA3 FINANCIALSTRENGTH RATING 9402110119 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD MAKING THE SWITCH A WIRELESS SWITCHING SYSTEM IN A SMALL TEXAS TOWN PROVIDES A TEST FOR SERVICE TO OUTLYING AREAS BY SCOTT MCCARTNEY QUITAQUE TEXAS VISITORS FROM JAPAN RUSSIA BRAZIL NORWAY AND OTHER FOREIGN LANDS HAVE BEEN STREAMING TO THIS REMOTE TOWN IN WEST TEXAS THE ATTRACTION A WIRELESS TELEPHONE TRANSMISSION SYSTEM INSTALLED BY GTE CORP A YEAR AGO TO PROVIDE QUITAQUE'S LOCAL PHONE SERVICE REPLACING AN OUTDATED MECHANICAL SWITCH SYSTEM THE NEW SYSTEM DOESN'T MAKE A CLEAN BREAK WITH THE PAST PHONES ARE STILL ATTACHED TO WALL JACKS SO CUSTOMERS CAN'T ROAM THROUGH TOWN AND STAY CONNECTED BUT QUITAQUE PRONOUNCED KITAKWAY OFFERS A LOOK AT ONE FACET OF THE TELEPHONE'S WIRELESS FUTURE THE SYSTEM'S CENTRAL EQUIPMENT TRADES WIRES ON PHONE POLES FOR ANTENNAS AND TRANSMITTERS TECHNOLOGY THAT COULD BE CHEAPER FOR PHONE COMPANIES TO INSTALL IN SOME MARKETS QUITAQUE'S OLD SYSTEM INSTALLED TWO DECADES AGO WAS SLOW UNRELIABLE AND SUSCEPTIBLE TO STORM OUTAGES RESIDENTS SAY THE WIRELESS SYSTEM WHICH DIDN'T INCREASE THEIR MONTHLY FEES WORKS BETTER BUT STILL HAS SOME BUGS YOUR VOICE REVERBERATES SO YOU CAN HEAR YOURSELF TALKING SAYS BOB MYERS JR AND IT CAN TAKE FIVE TRIES TO GET A CALL THROUGH SOMETIMES IT JUST MAKES YOU ANGRY GTE TECHNICIANS HAVE WORKED OUT SOME EARLY GLITCHES SUCH AS FAXMACHINE FAILURES AND SERVICE INTERRUPTIONS BUT TWO MAIN PROBLEMS REMAIN THE ECHO MR MYERS MENTIONED AND SNAGS IN DATA TRANSMISSION OVER SOME TYPES OF MODEMS WE'VE MADE IMPROVEMENTS IN BOTH PROBLEMS BUT I WOULDN'T SAY THEY'VE BEEN COMPLETELY SOLVED SAYS JAMES WAKEFIELD A GTE SUPERVISOR QUITAQUE BECAME A HIGHTECH PROVING GROUND FOR TWO MAIN REASONS GTE WAS PLANNING TO REPLACE ITS AGING PHONE SYSTEM ANYWAY AND ITS VALLEY SETTING OFFERED AN IDEAL SPOT TO TEST THE WIRELESS TECHNOLOGY WHICH DEPENDS ON A MAIN ANTENNA TO TRANSMIT CALLS THE WIRELESS SYSTEM IS AN AMALGAMATION OF THINGS NEW DIGITAL TRANSMITTERS THAT COMPRESS SIGNALS AND OLD THE BUSINESSBAND FM RADIO FREQUENCIES USED FOR YEARS BY TAXI DISPATCHERS IN QUITAQUE EACH HOME IS WIRED TO ONE OF 20 CLUSTER SITES IN BACK ALLEYS THE SITES HAVE ONE OR TWO TWOFOOTLONG ANTENNAS THAT BROADCAST AND RECEIVE CALLS TO AND FROM A 300FOOT TOWER IN NEARBY TURKEY TEXAS THE HIGHEST POINT IN THE AREA EACH SITE ALSO HAS A FIVEFOOTTALL CABINET HOLDING 24 DIFFERENT RECEIVING AND BROADCASTING BOXES EACH ASSIGNED TO ONE PHONE LINE IN OUTLYING AREAS EACH HOUSE HAS ITS OWN BOX AND AN ANTENNA THAT TALKS TO THE TURKEY TOWER SOME OF THE HOMES WERE TOO REMOTE TO HAVE PHONE SERVICE PREVIOUSLY THE BOXES MADE BY INTERDIGITAL COMMUNICATIONS OF KING OF PRUSSIA PA CONVERT OUTGOING ANALOG PHONE SIGNALS TO DIGITAL AND THEN COMPRESS THE DATA THEY ALSO AMPLIFY SIGNALS BEFORE BROADCASTING THEM TO THE TOWER THROUGH AN ANTENNA OVER ONE OF 12 FREQUENCIES GTE USES IN QUITAQUE EACH CAN CARRY FOUR CONVERSATIONS FOR INCOMING TRANSMISSION THE BOXES REVERSE THE PROCESS TRANSLATING DIGITAL SIGNALS INTO ANALOG SECURITY IS ASSURED GTE SAYS BECAUSE EACH BOX HAS ITS OWN SECURITY CODE AND ANYONE TUNED TO THE FREQUENCY WOULD PICK UP ONLY AN INDECIPHERABLE STREAM OF NUMBERS SIGNAL COMPRESSION IS NECESSARY TO CONSERVE SPACE ON PRECIOUS RADIO FREQUENCIES BUT IT ALSO MEANS VOICE INFLECTIONS ARE SOMETIMES LOST GTE SAYS DATA TRANSMISSION TOO IS HAMPERED BECAUSE THE SYSTEM CAN'T HANDLE INFORMATION AS FAST AS FAX MACHINES AND COMPUTERS NORMALLY SEND IT WARREN MERRELL OWNER OF THE VENTURE FOODS GROCERY STORE HAD TROUBLE SENDING ORDERS TO HIS DISTRIBUTOR BY COMPUTER UNTIL GTE SWITCHED HIS MODEM BACK TO A WIRED PHONE CIRCUIT DESPITE THE PROBLEMS GTE HAS PLACED THE WIRELESS TECHNOLOGY IN ITS PORTFOLIO OF UPGRADE OPTIONS TAKING IT TO OTHER COMMUNITIES IS A POSSIBILITY SAYS LARRY BROWN GROUP MANAGER OF TRANSMISSION STANDARDIZATION WE WILL GO FORWARD WITH MORE APPLICATIONS IF THE TECHNOLOGICAL AND ECONOMIC PARAMETERS WORK OUT PROPONENTS OF WIRELESS TECHNOLOGY POINT TO COST AS ITS BIG EDGE IF WE WERE TO START OVER FROM SCRATCH WE WOULD USE A LOT OF WIRELESS SAYS PETER HUBER A SENIOR FELLOW AT THE MANHATTAN INSTITUTE A NEW YORK THINK TANK WIRELESS SYSTEMS CAN BE INSTALLED FOR 500 TO 600 A CUSTOMER HE SAYS THAT CONTRASTS WITH AS MUCH AS 2500 A CUSTOMER FOR LANDLINE SYSTEMS AND ABOUT 1000 A CUSTOMER FOR CELLULAR SYSTEMS WHICH ESSENTIALLY PUT THE RADIO IN THE PHONE RATHER THAN IN THE ALLEY AND UNTETHER CUSTOMERS TO MAKE AND TAKE CALLS ON THE GO BUT OTHERS ARGUE THAT THE FUTURE OF LOCAL PHONE SERVICE IS IN FIBEROPTIC CABLES OR THE COAXIAL CABLES OF CABLETELEVISION SYSTEMS IN URBAN AREAS LAYING CABLE OR WIRE TO CUSTOMERS IS USUALLY COSTEFFECTIVE AND RADIO FREQUENCIES ARE MORE CLUTTERED LEADING MANY ANALYSTS TO PREDICT ONLY A NARROW MARKET FOR THE TYPE OF SYSTEM GTE IS TESTING IN QUITAQUE I THINK WE'LL SEE LIMITED APPLICATION IN AREAS THAT ARE DIFFICULT OR UNECONOMIC TO REACH SAYS LARRY VANSTON PRESIDENT OF TECHNOLOGY FUTURES A FORECASTING FIRM IN AUSTIN TEXAS STILL QUITAQUE'S SYSTEM HAS SPARKED ENOUGH INTEREST FOR OR STARK JR PRESIDENT OF THE TOWN'S FIRST NATIONAL BANK TO GET SOME PROBING CALLS OFFICIALS FROM OTHER PHONE COMPANIES CELLULAR COMPANIES AND SOME THAT DON'T EVEN TELL YOU WHO THEY ARE CALL INQUIRING ABOUT THE WIRELESS SYSTEM HE SAYS ARE YOU SATISFIED HOW'S IT GOING' THEY HAVEN'T CALLED GTE BUT THEY SURE TALK TO PEOPLE HERE MR MCCARTNEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S DALLAS BUREAU 9402110118 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD ARE THEY SAFE NOBODY KNOWS BUT STUDIES ARE UNDER WAY TO DETERMINE THE HEALTH EFFECTS OF CELLULARFREQUENCY RADIO WAVES BY JOHN J KELLER DO CELLULAR TELEPHONES CAUSE BRAIN CANCER FOR A WHILE LAST YEAR THAT WAS THE WIRELESS QUESTION THAT EVERYBODY WANTED ANSWERED THE FUROR HAS DIED DOWN SOMEWHAT BUT THE ISSUE HASN'T GONE AWAY AND IT WON'T FOR A SIMPLE REASON VERY FEW STUDIES HAVE LOOKED AT THE BIOLOGICAL EFFECTS OF CELLULARFREQUENCY RADIO WAVES THE UNCERTAINTY CONTINUES TO CREATE MUCH CONCERN AMONG CONSUMERS IT ALSO HAS PROMPTED THE INDUSTRY TO LAUNCH A THREETOFIVEYEAR RESEARCH EFFORT THAT COULD COST UP TO 25 MILLION AND IT HAS THREATENED TO BECOME A LEGAL NIGHTMARE FOR SEVERAL OF THE LARGEST CELLULARPHONE MAKERS THE MOST RECENT LAWSUIT WAS FILED IN DECEMBER BY ROBERT KANE A MOTOROLA INC ENGINEER IN SCOTTSDALE ARIZ MR KANE SUED HIS EMPLOYER IN COOK COUNTY COURT CHICAGO ALLEGING THAT HIS BRAIN CANCER WAS CAUSED BY EXPERIMENTS IN WHICH HE ACTED AS A GUINEA PIG TO TEST A NEW MOTOROLA CELLULARPHONE ANTENNA MOTOROLA BASED IN SCHAUMBURG ILL DENIES THE ALLEGATIONS IN ANOTHER HIGHPROFILE CASE FILED IN JANUARY 1993 A ST PETERSBURG FLA MAN SUED NEC CORP OF AMERICA A SUBSIDIARY OF NEC CORP OF JAPAN CLAIMING THAT HIS WIFE GOT BRAIN CANCER FROM HER NEC CELLULAR PHONE THE CASE FILED IN PINELLAS COUNTY FLA CIRCUIT COURT IS AWAITING TRIAL NEC HAS MAINTAINED THAT ITS PHONES ARE SAFE WHEN FIRST CONFRONTED WITH THE LAWSUITS AND THE RESULTING PUBLICITY THE CELLULAR INDUSTRY MOUNTED A PUBLICRELATIONS OFFENSIVE CLAIMING AT NEWS CONFERENCES AND IN NEWS RELEASES THAT THERE WERE THOUSANDS OF STUDIES GOING BACK 40 YEARS THAT PROVED THE SAFETY OF CELLULAR PHONES SINCE THEN HOWEVER THE INDUSTRY HAS LARGELY PUT FORTH STUDIES THAT LOOKED AT THE EFFECTS OF RADIO WAVES OUTSIDE THE CELLULAR FREQUENCY OR AT EXPOSURE LEVELS THAT ARE DIFFERENT FROM THOSE EXPERIENCED BY CELLULARPHONE USERS THE INDUSTRY HASN'T TOLD THE PUBLIC THE FULL STORY ABOUT HOW THERE HAS BEEN VERY LITTLE RESEARCH ON BIOLOGICAL EFFECTS AT LOWLEVEL EXPOSURES SIMILAR TO THOSE OF HANDHELD PHONES SAYS LOUIS SLESIN EDITOR OF MICROWAVE NEWS A NEW YORK NEWSLETTER AND A FREQUENT CRITIC OF THE INDUSTRY'S HANDLING OF THE SAFETY ISSUE MR SLESIN AND OTHER CRITICS ALSO ACCUSE THE INDUSTRY AND ITS TRADE ASSOCIATION THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION IN WASHINGTON DC OF EXAGGERATING ANY POSITIVE RESEARCH THAT IT SAYS SUPPORTS ITS SAFETY CLAIMS THE CTIA'S PUBLICRELATIONS CHIEF IS RON NESSEN THE FORMER WHITE HOUSE SPOKESMAN UNDER PRESIDENT FORD IN AUGUST FOR EXAMPLE AN OFFICIAL FOR THE FOOD AND DRUG ADMINISTRATION REBUKED THE INDUSTRY AND THE CTIA FOR SUGGESTING THAT ENOUGH SCIENTIFIC EVIDENCE EXISTS TO SUPPORT THE CONCLUSION THAT CELLULAR PHONES ARE SAFE THEN IN DECEMBER THE INDUSTRY PUBLICIZED RESEARCH BEING DONE BY OM GANDHI CHAIRMAN OF THE UNIVERSITY OF UTAH'S DEPARTMENT OF ELECTRICAL ENGINEERING THE RESEARCH OUTLINED VAGUELY IN A NEWS RELEASE FROM THE UNIVERSITY HAD FOUND THAT THE EXPOSURE TO RADIATION FROM CELLULAR PHONES IS ONEFOURTH TO ONEFIFTH OF THE LEVELS CONSIDERED SAFE BY THE AMERICAN NATIONAL STANDARDS INSTITUTE AND THE INSTITUTE OF ELECTRONIC & ELECTRICAL ENGINEERS MOREOVER THE NEWS RELEASE GAVE THE IMPRESSION THAT ITS CONCLUSION THAT CELLULAR PHONES ARE SAFE HAD THE BACKING OF THE FEDERAL GOVERNMENT NOTING THAT THE RESEARCH WAS FINANCED BY A DIVISION OF THE NATIONAL INSTITUTES OF HEALTH THE GOVERNMENT HOWEVER BEGGED TO DIFFER IN A STATEMENT THE NIH'S NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES SAID DR GANDHI'S RESEARCH FOR NIEHS DOES NOT INCLUDE STUDIES TO DETERMINE THE SAFETY OF ANY PRODUCT IT ADDED NO STUDIES ASSESSING BIOLOGICAL EFFECTS ARE ASSOCIATED WITH DR GANDHI'S GRANT DR GANDHI'S CELLULAR RESEARCH IS ALSO BEING FUNDED IN PART BY MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH THE NATION'S LARGEST PROVIDER OF CELLULARPHONE SERVICE WHICH IS SET TO MERGE WITH AMERICAN TELEPHONE & TELEGRAPH CO UNTIL THE CELLULARPHONE SCARE STARTED MOST OF THE DEBATE OVER ELECTROMAGNETICFIELD EFFECTS FOCUSED ON THE LOWFREQUENCY RADIATION EMITTED BY ELECTRIC MOTORS AND HIGHVOLTAGE POWERTRANSMISSION LINES POPULATION STUDIES IN THE US AND MORE RECENTLY IN SWEDEN HINT THAT CANCER MISCARRIAGES AND OTHER ILL EFFECTS ARE MORE COMMON AMONG PEOPLE EXPOSED TO THESE LOWFREQUENCY FIELDS NOW SEVERAL LAB EXPERIMENTS INDICATE THAT RADIO WAVES THAT OPERATE AT HIGH FREQUENCIES AND AT LOW POWER AS IS THE CASE WITH CELLULAR PHONES CAN CAUSE LEAKAGE THROUGH THE BLOODBRAIN BARRIER AS WELL AS CANCEROUS CELL GROWTH AND A BREAKDOWN OF THE CALCIUM THAT COATS CELLS AND ALLOWS SIGNALS TO BE PASSED BETWEEN CELLS ONE OF THOSE EXPERIMENTS WAS CONDUCTED BY STEPHEN CLEARY A PROFESSOR OF PHYSICS AND BIOPHYSICS AT THE MEDICAL COLLEGE OF VIRGINIA HIS EXPERIMENTS IRRADIATED TWO DIFFERENT TYPES OF CELLS NORMAL HUMAN LYMPHOCYTES AND GLIOMA CANCER CELLS OF THE BRAIN DR CLEARY TUNED HIS RADIO EQUIPMENT TO FREQUENCIES OF 27 MEGAHERTZ AT WHICH INDUSTRIAL HEATSEALING EQUIPMENT OPERATES AND 245 BILLION CYCLES A SECOND AT WHICH MICROWAVE OVENS OPERATE IN BOTH CASES THE CELLS SHOWED ABNORMAL GROWTH AFTER TWO HOURS OF EXPOSURE AND WERE STILL GROWING ABNORMALLY THREE TO FIVE DAYS AFTER THE EQUIPMENT HAD BEEN TURNED OFF DR CLEARY DIDN'T STUDY THE EFFECTS FROM CELLULARPHONE FREQUENCIES WHICH ARE TYPICALLY IN THE 800 TO 900MEGAHERTZ RANGE BORJE WAMBLAD A RADIO SCIENTIST AT SWEDEN'S TELEFON AB LM ERICSSON ONE OF THE WORLD'S LARGEST SUPPLIERS OF CELLULAR RADIO EQUIPMENT HAS SAID THAT SCIENTISTS ARE CONCERNED THAT THE HUMAN HEAD MAY BE SOME SORT OF LENS THAT CONCENTRATES OR MAGNIFIES THE RADIATION EMITTED BY THE PHONE TO THE BRAIN ERICSSON AND TELEVERKERT RADIO THE STATEOWNED CARRIER PAID MEDICAL RESEARCHERS AT UNIVERSITY HOSPITAL IN LUND SWEDEN TO TEST THE BIOPHYSICAL EFFECTS OF RADIO WAVES ON RATS THE SWEDISH SCIENTISTS EXPOSED THE RATS TO CONTINUOUS AND PULSED WAVES IN THE FREQUENCY JUST ABOVE THAT USED BY CELLULAR PHONES THE RESULT THEY WERE ABLE TO PENETRATE THE BLOODBRAIN BARRIER WHICH IS ACTUALLY A CHEMICAL THAT SURROUNDS THE BLOOD VESSELS AND PROTECTS BRAIN TISSUE FROM HARMFUL TOXINS AT THE PETTIS VETERANS ADMINISTRATION MEDICAL CENTER IN LOMA LINDA CALIF W ROSS ADEY ASSOCIATE CHIEF OF THE RESEARCH DEPARTMENT CONDUCTED EXPERIMENTS THAT SHOWED RADIO WAVES AT ABOUT THE SAME POWER AS THAT EMITTED BY TODAY'S CELLULAR PHONES CAN BREAK DOWN THE BINDING OF CALCIUM TO THE SURFACE OF CELLS CALCIUM IS ESSENTIAL FOR VIRTUALLY ALL LIVING PROCESSES INCLUDING ENZYME ACTION AND CELL GROWTH DR ADEY SAYS HE SHOWED THAT A BREAKDOWN OCCURRED AT 145 MEGAHERTZ THE FREQUENCY AT WHICH HAM RADIOS OPERATE AND AT 450 MEGAHERTZ THE FREQUENCY USED BY SECURITY GUARDS' RADIO PHONES EUROPEAN CELLULAR SYSTEMS CURRENTLY OPERATE AT 450 MEGAHERTZ WE NEED TO KNOW THE CUMULATIVE DOSE OF RADIO FREQUENCIES DR ADEY SAYS STILL UNDER WAY ARE TESTS ANNOUNCED IN DECEMBER BY THE INDUSTRYBACKED GROUP INCLUDING A LARGESCALE EPIDEMIOLOGICAL STUDY TO ASSESS THE IMPACT OF EXPOSURE TO RADIOFREQUENCY WAVES SPECIFICALLY ON PORTABLE CELLULARPHONE USERS IT IS BEING DIRECTED BY KENNETH ROGHMAN AND NANCY DREYER OF EPIDEMIOLOGY RESOURCES INC A RESEARCH OUTFIT IN NEWTON LOWER FALLS MASS THE INDUSTRY HAS ALSO ASKED FOR PROPOSALS ON STUDIES THAT WILL EXAMINE POSSIBLE GENETIC EFFECTS OF EXPOSURE TO CELLULARPHONE FREQUENCIES PEER REVIEW OF ALL OF THE INDUSTRYBACKED STUDIES WILL BE COORDINATED THROUGH HARVARD UNIVERSITY'S CENTER FOR RISK ANALYSIS SAYS GEORGE L CARLO AN EPIDEMIOLOGIST AT GEORGETOWN UNIVERSITY IN WASHINGTON DC AND CHAIRMAN OF THE GROUP ALTHOUGH CRITICS QUESTION THE CREDIBILITY OF STUDIES FINANCED BY AN INDUSTRY WHOSE PRINCIPAL PRODUCT IS BEING SCRUTINIZED DR CARLO INSISTS THAT THEY WILL BE IMPARTIAL WE HAVE ACTIVELY SOUGHT THE INPUT OF SCIENTISTS FROM ACADEMIA INDUSTRY GOVERNMENT AND THE PRIVATE SECTOR WHO ARE EXPERIENCED IN THIS AREA OF RESEARCH HE SAYS MEANWHILE THE CELLULARPHONE BOOM IS INTENSIFYING CONCERNS ABOUT THE INDUSTRY'S HIGHPOWERED TRANSMISSION TOWERS PRESSURE IS MOUNTING ON POLITICIANS FROM COMMUNITIES ACROSS THE COUNTRY TO RESTRICT THE INSTALLATION OF CELLULARPHONETRANSMISSION TOWERS ESPECIALLY NEAR SCHOOLYARDS AND HOMES THE DEBATE WILL GET MORE HEATED THANKS TO PERSONAL COMMUNICATIONS SERVICES THE NEXT GENERATION OF WIRELESS TECHNOLOGY WHICH CALL FOR THE CONSTRUCTION OF TENS OF THOUSANDS OF TRANSMISSION UNITS ANYWHERE PEOPLE STROLL OR NEED TO USE A PHONE COMPLAINS MR SLESIN THE NEWSLETTERWRITER THE PHONE INDUSTRY IS TALKING ABOUT STARTING A NEW KIND OF PORTABLEPHONE SERVICE INSTALLING YET ANOTHER SOURCE OF RADIOFREQUENCY EMISSIONS WITHOUT SETTLING THE HEALTH ISSUE ADEQUATELY MR KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110117 940211 AKZO OFFER FOR NOBEL SHARES AMSTERDAM DUTCH CHEMICAL GROUP AKZO NV SAID YESTERDAY IT HAS BEEN TENDERED 99 OF THE SHARES OF ITS SWEDISH MERGER PARTNER NOBEL INDUSTRIER AB AKZO SAID ITS TENDER OFFER FOR NOBEL'S SHARES HAS NOW BECOME UNCONDITIONAL AND AKZO IS UNDERTAKING MEASURES IN SWEDEN TO WIN THE REMAINING 1 OF UNTENDERED NOBEL STOCK AKZO SAID THAT UNTIL FURTHER NOTICE IT WILL BUY REMAINING NOBEL COMMON AT THE EQUIVALENT OF 2650 SWEDISH KRONOR 331 CASH A SHARE THE SAME PRICE AS THE TENDER OFFER BUT IT WILL NO LONGER OFFER THE CHOICE OF RECEIVING AKZO SHARES IN LIEU OF CASH 9402110116 940211 BUSINESS BRIEF MANVILLE CORP PROBLEMS AT UNIT ARE CITED FOR FOURTHQUARTER LOSS MANVILLE CORP POSTED A FOURTHQUARTER LOSS BLAMING PROBLEMS AT ITS PAPERPRODUCTS UNIT THAT AREN'T EXPECTED TO GO AWAY ANYTIME SOON THE LOSS TOTALED 8 MILLION OR 11 CENTS A SHARE COMPARED WITH NET INCOME OF 148 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER SALES ROSE 17 TO 5828 MILLION FROM 573 MILLION EXCLUDING A SERIES OF UNUSUAL ITEMS MANVILLE IN DENVER WOULD HAVE HAD A PROFIT IN THE LATEST PERIOD OF ABOUT 77 MILLION OR TWO CENTS A SHARE COMPARED WITH YEAREARLIER PROFIT OF ABOUT 13 MILLION OR A PERSHARE LOSS OF THREE CENTS AFTER ALLOWING FOR PREFERRED STOCK DIVIDENDS MANVILLE SAID OPERATING PROFIT BEFORE UNUSUAL ITEMS AT ITS RIVERWOOD INTERNATIONAL CORP PAPERPRODUCTS UNIT FELL 49 DUE IN PART TO WEAK LINERBOARD PRICES RIVERWOOD IS 81OWNED BY MANVILLE SAID IT EXPECTS 1994 TO BE DIFFICULT AS WELL THE RESULTS WERE RELEASED AFTER THE STOCK MARKET CLOSED 9402110115 940211 EUROPE BECKONS US PROVIDERS OF PC NETWORKS NOVELL DOUBLED ITS STAFF IN TWO YEARS TO FILL SURGING MARKET NEEDS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL FIRST TO ARRIVE ON THE EUROPEAN SCENE WERE APPLE COMPAQ AND THE OTHER BIG US PERSONALCOMPUTER MANUFACTURERS THEN CAME THE BIG PCSOFTWARE HOUSES SUCH AS LOTUS AND BORLAND NOW COMES THE LATEST WAVE OF US PC TECHNOLOGY INTO THE EUROPEAN MARKET THE NETWORKING FIRMS FROM MOSCOW TO DUBLIN MOST OF THE MAJOR US COMPANIES THAT SPECIALIZE IN GADGETS AND SOFTWARE TO CONNECT PCS HAVE BEEN RUSHING TO EXPAND THEIR EUROPEAN OPERATIONS THE BIGGEST NOVELL INC BASED IN PROVO UTAH HAS DOUBLED ITS EUROPEAN STAFF IN THE PAST TWO YEARS TO 500 ANOTHER CISCO SYSTEMS INC MENLO PARK CALIF IS OPENING SALES OFFICES AND LINING UP BIG EUROPEAN PHONE COMPANIES AS ALLIES A THIRD BANYAN SYSTEMS INC WESTBORO MASS HAS ANNOUNCED THAT HEWLETTPACKARD CO WILL DISTRIBUTE SOME OF ITS SOFTWARE IN EUROPE THERE IS GROWTH HERE IN EUROPE FOR OUR PRODUCT AREA SAYS GREGORY FALLON VICE PRESIDENT IN CHARGE OF NOVELL'S EUROPEAN OPERATIONS INDEED AFTER YEARS OF LAGGING BEHIND THE US MARKET IN CONNECTING PCS THE EUROPEAN MARKET IS COMING ALIVE SOMETIME THIS YEAR MARKETRESEARCH FIRM DATAQUEST INC EXPECTS THE NUMBER OF PCS LINKED TOGETHER IN NETWORKS RATHER THAN WORKING BY THEMSELVES TO PASS THE 50 MARK LAST YEAR IT SAYS 45 OF PCS IN EUROPE WERE INTERCONNECTED COMPARED WITH 60 IN THE US AND 11 IN JAPAN IT ESTIMATES THAT EUROPEANS LAST YEAR BOUGHT 45 BILLION OF SOFTWARE ADAPTOR BOARDS AND OTHER COMPONENTS TO CONNECT PCS OVER THE LAST FEW YEARS WE'VE REALLY SEEN AN EXPLOSIVE GROWTH OF SOFTWARE FOR CONNECTIVITY AS US VENDORS HAVE FOCUSED ON THE EUROPEAN MARKET SAYS DATAQUEST ANALYST DAVID TAYLOR THAT DOESN'T MEAN EUROPE'S AN EASY TARGET NOVELL LAST YEAR HIT A ROCKY PATCH WITH ITS EUROPEAN REVENUE RISING JUST 4 TO 325 MILLION PARTLY BECAUSE OF THE RECESSION IN GERMANY BUT MR FALLON SAYS HE EXPECTS NOVELL TO GET BACK TO GROWTH RATES SIMILAR TO THE PAST OVER THE LONG HAUL MEANWHILE SMALLER NICHE PLAYERS SUCH AS CISCO HAVE BEEN DOUBLING THEIR EUROPEAN REVENUES DESPITE RECESSION AND EVEN MICROSOFT CORP IN REDMOND WASHINGTON THE DOMINANT FORCE IN PC SOFTWARE WORLDWIDE BUT A NEWCOMER TO NETWORKING PRODUCTS IS FINDING THE GRASS GREENER IN EUROPE WHILE DECLINING TO DISCLOSE ANY SALES FIGURES CAMERON MYHRVOLD A MICROSOFT MARKETING MANAGER IN EUROPE SAYS HIS COMPANY'S NETWORKSOFTWARE SALES ARE DOING A LITTLE BETTER IN EUROPE THAN WE HAVE DONE IN THE STATES A FEW FACTORS ARE FUELING THE AMERICAN OPTIMISM FIRST JUST AS HAPPENED IN THE US AND CANADA A FEW YEARS EARLIER THE MORE PCS ARE USED IN EUROPE THE MORE PEOPLE WANT SPECIALIZED HELP INTERCONNECTING THEM DEMAND RISES FAST SECOND ONCE HERE THE US HOUSES FIND LITTLE LOCAL COMPETITION MOST OF EUROPE'S MAJOR SOFTWARE FIRMS ARE STILL FOCUSING ON BIG CLIENTS OR BIG COMPUTERS IGNORING SMALLBUSINESS CUSTOMERS AND PACKAGED PCNETWORK SOFTWARE THIRD AS WITH MOST COMPUTER PRODUCTS NETWORKSOFTWARE PRICES HERE ARE 10 TO 30 HIGHER THAN IN THE US ALLOWING FOR FATTER PROFITS OF COURSE THE US FIRMS BRING WITH THEM THE SAME RIVALRIES THEY HAVE BACK HOME AS IN THE US NOVELL IS DOMINANT WITH ABOUT 60 OF THE EUROPEAN MARKET FOR NETWORKOPERATING SYSTEMS ACCORDING TO DATAQUEST MICROSOFT IS GAINING WITH ABOUT 10 BUT THERE ARE BIG DIFFERENCES BETWEEN US AND EUROPEAN PC NETWORKS NEWER EUROPEAN NETWORKS TEND TO BE USED FOR SIMPLE TASKS LIKE CONNECTING SEVERAL PCS TO ONE PRINTER OR JUST SWAPPING FILES SAYS GERARD GABELLA MANAGING DIRECTOR IN EUROPE OF THE SOFTWARE PUBLISHERS ASSOCIATION A US TRADE GROUP FOR EXAMPLE IN THE FIRST NINE MONTHS OF 1993 THE MOST RECENT PERIOD REPORTED THE GROUP COUNTED LESS THAN 20 MILLION OF GROUPWARE SOLD IN EUROPE A THIRD THE US FIGURE GROUPWARE IS SOFTWARE THAT HELPS SEVERAL PEOPLE ON A PC NETWORK WORK TOGETHER ON THE SAME PROJECTS THERE ARE ALSO DIFFERENCES FROM ONE EUROPEAN COUNTRY TO THE NEXT FRENCH COMPANIES WITH THEIR STRICT MANAGEMENT HIERARCHIES FOR EXAMPLE OFTEN TREAT PC NETWORKS WITH CAUTION A FRENCH MANAGER IS A MANAGER BECAUSE HE KNOWS MORE THAN HIS PEOPLE AND HE ISN'T GOING TO SHARE ALL THE INFORMATION HE HAS WITH THEM BY BUYING LOTS OF DEMOCRATIC GROUPWARE FOR THEIR PCS SAYS MR GABELLA HIMSELF A FRENCHMAN BUT EASTERN EUROPEANS ARE SUDDENLY WILD ABOUT NETWORKED PCS HAVING FEWER COMPUTERS AND LESS CASH TO SPEND ON MAINFRAMES MANY EASTERN EUROPEAN COMPANIES ARE TURNING TO PC NETWORKS AS A CHEAPER WAY TO COMPUTERIZE QUICKLY TO CAPITALIZE NOVELL IS RAPIDLY LINING UP NEW DEALERS AND DISTRIBUTORS IN EASTERN EUROPE AND GETTING AN ENTHUSIASTIC GREETING THE EASTERN EUROPEANS SAYS MR FALLON UNDERSTAND THE TECHNOLOGY QUITE WELL 9402110114 940211 BUSINESS BRIEF HOECHST AG COMPANY SAID TO BE MULLING SPINOFF OF FIBERS DIVISION GERMANY'S HOECHST AG CHEMICALS COMPANY IS CONSIDERING SPINNING OFF ITS FIBERS DIVISION ACCORDING TO A NEWSPAPER REPORT A HOECHST SPOKESMAN WOULDN'T IMMEDIATELY COMMENT ON THE REPORT IN GERMANY'S HANDELSBLATT FINANCIAL NEWSPAPER SUCH A MOVE WOULD ECHO A PREVIOUSLY ANNOUNCED PLAN BY COMPETITOR BAYER AG DESCRIBED AS A COSTCUTTING MOVE THURSDAY'S REPORTS REITERATE A CONFIRMATION OF THE FIBERSUNIT DISCUSSIONS LATE IN JANUARY BY HOECHST'S FINANCE CHIEF JUERGEN DORMANN WHO BECOMES CHAIRMAN APRIL 26 AT THAT TIME A HOECHST SPOKESWOMAN SAID THE SPINOFF DISCUSSION WAS FAR FROM ANY DECISION ACCORDING TO NEWSPAPER REPORTS HOECHST WORKERS' COUNCIL CHAIRMAN ROLF BRAND SAID WEDNESDAY A DECISION WASN'T LIKELY UNTIL NEAR YEAR'S END THE HOECHST SPOKESWOMAN HAS SAID A SPINOFF WOULD HAVE WAGEPOLICY IMPLICATIONS THAT WOULD LOWER PERSONNEL COSTS ACCORDING TO REPORTS HOECHST DENIED IT INTENDED TO CUT WAGES BUT SAID ITS PLAN WOULD CUT COSTS 9402110113 940211 RETAILING INSIDE SUE BUSBY'S CLOSET BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL RETAILERS PUZZLED ABOUT WHY WOMEN AREN'T BUYING AS MANY CLOTHES NEED LOOK NO FURTHER THAN SUE BUSBY'S CLOSET ON THE TOP SHELF OF MRS BUSBY'S AUXILIARY CLOSET IN HER SUBURBAN CHICAGO HOME WHERE SHE KEEPS CLOTHES SHE DOESN'T WEAR EVERYDAY ARE DUSTY BOXES OF FORMER HADTOHAVE SHOES LIKE CHEROKEE SANDALS WITH WEDGE HEELS AND WHITE SHOES THAT LACE UP THE ANKLE LABELED ON THE BOX GOODCUTE WHICH MEANS DON'T THROW AWAY YOU NEVER KNOW WHEN THEY MIGHT COME BACK SAYS MRS BUSBY 33 YEARS OLD A HUMANRESOURCES MANAGER AT LEAST 100 BELTS HANG LIKE A TECHNICOLOR WATERFALL IN THE AUXILIARY CLOSET ALTHOUGH SHE DID JUST THROW AWAY ALL BUT ONE OF THE ULTRATHIN ONES SHE KEPT THE BLACK ONE BECAUSE YOU NEVER KNOW DRAPED WITH HER SCARVES ARE ROSEBUD TIES LEFT OVER FROM THE POWERSUIT ERA SHE KEEPS A GLORIA VANDERBILT JEANS SKIRT AND OTHER TRENDY ITEMS OF THE PAST IN A BOX ON THE FLOOR MRS BUSBY LOVES NEW CLOTHES BUT SHE ALREADY HAS PLENTY OF THEM AND THE OLDER SHE GETS THE LESS SHE LIKES TO SHOP I WAS ACTUALLY PREPARED TO SPEND MORE LAST YEAR THAN SHE DID SHE SAYS MRS BUSBY'S CLOSET IS A RECYCLER'S DREAM FROM HER MAIN WARDROBE SHE PULLS OUT A PLEATED OUTBACK RED SKIRT BOUGHT FIVE YEARS AGO AT THE LIMITED I'M WEARING IT AGAIN SHE SAYS PROUDLY MRS BUSBY THEN DISCOVERS A HERRINGBONE SUIT JACKET AND CALCULATES ITS AGE EIGHT YEARS YOU KNOW WHAT I COULD GET THE SKIRT SHORTENED AND WEAR THIS AGAIN SHE SAYS A 10YEAROLD TAPESTRY VEST THAT LONG SAT IDLE NOW LOOKS GOOD WITH A NEW DENIM SHIRT THEY SAY IF YOU DON'T WEAR IT FOR MORE THAN A YEAR GET RID OF IT SHE SAYS I DON'T LISTEN THERE ARE FEW HOLES MRS BUSBY NEEDS TO FILL SHE'S GOT THE NAVY SUIT DRESS THE FLORALPRINT DRESS WITH LACE COLLAR AT LEAST SIX BLACK SKIRTS LONG SHORT CULOTTE LINEN WOOL CREPE TEN VARIETIES OF WHITE BLOUSES HANG TOGETHER ON THE UPPER RACK MOST STILL COVERED WITH DRY CLEANING PLASTIC I DON'T KNOW WHY I BOUGHT THESE SHE SAYS I GUESS IT WAS A WEIGHT THING WHEN I FEEL HEAVY I GO ALL BLACK THIS MUST HAVE BEEN A LIGHT PHASE MRS BUSBY RECYCLES A LOT OF PANTS BECAUSE SHE'S CONFUSED ABOUT SKIRT HEMLINES HER SHORT SKIRTS AREN'T OUT EXACTLY THEY'RE JUST DIFFERENT SHE RECENTLY FOUND SOME BLACKANDWHITE CHECKED SUSPENDER PANTS FROM SEVEN YEARS AGO AND THOUGHT OH THESE ARE KIND OF CUTE COLLEAGUES COMPLIMENTED HER ALL DAY 9402110112 940211 BUSINESS BRIEF BRITISH PETROLEUM CO ROYAL DUTCH JOINT BLOCK HAS SECOND OIL DISCOVERY BRITISH PETROLEUM CO LONDON SAID IT MADE A SECOND OIL DISCOVERY WEST OF THE SHETLAND ISLANDS AND SAID IT WAS CONSIDERING AN EARLY DEVELOPMENT PLAN TO PRODUCE OIL FROM THE AREA THE FIND IS IN A BLOCK EQUALLY OWNED BY BP AND SHELL OIL CO A UNIT OF ROYAL DUTCH/SHELL GROUP IT HAS ESTIMATED RECOVERABLE RESERVES OF 250 MILLION TO 500 MILLION BARRELS OF OIL BP SAID IT AND SHELL WERE CONSIDERING OPTIONS TO PRODUCE OIL FROM THE AREA WHICH INCLUDES FOINAVEN A NEARBY DISCOVERY WITH SIMILAR RESERVE POTENTIAL THE FIRST PHASE OF PRODUCTION MAY BE CAPABLE OF YIELDING AROUND 100000 BARRELS A DAY WITHIN THE NEXT FEW YEARS 9402110111 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE ROMAN NUMERALS A LOT IS RIDING ON THE BATTLE FOR A MOBILEPHONE LICENSE IN ITALY NO WONDER IT'S SO NASTY BY LISA BANNON MILAN SO YOU THINK CELLULARTELEPHONE COMPETITION IS TOUGH IN THE US WELL TAKE A LOOK AT ITALY HERE THE BATTLE FOR A SECOND MOBILEPHONE LICENSE PITS THE COUNTRY'S THREE TITANS OF INDUSTRY GIANNI AGNELLI OF FIAT SPA SILVIO BERLUSCONI OF FININVEST SPA AND CARLO DE BENEDETTI OF ING C OLIVETTI & CO IN A BRUTAL CONTEST FOR ONE OF EUROPE'S FASTESTGROWING TELECOMMUNICATIONS MARKETS AND ONE OF THE LAST TO OPEN UP TO COMPETITION BUT THIS BATTLE IS ABOUT MUCH MORE THAN MONEY MUCH OF THE ANIMOSITY BETWEEN THE COMBATANTS IS PERSONAL AND LONGRUNNING IN ADDITION THE FUTURE OF AT LEAST ONE OF THE COMPETITORS OLIVETTI COULD DEPEND ON THE DECISION AND THE PHONE CONTEST IS A MAJOR TEST OF WHETHER THINGS HAVE TRULY CHANGED HERE FOLLOWING A TWOYEAR INVESTIGATION THAT REVEALED THAT NEARLY EVERY GOVERNMENT CONTRACT AWARDED OVER THE PAST 10 YEARS HAS BEEN PADDED WITH EXTORTION PAYMENTS UNTIL NOW WE'VE SEEN HOW CONTRACTS WERE AWARDED IN ITALY SAYS LORENZO COLUCCI ITALIAN MARKET ANALYST FOR NATWEST SECURITIES IN LONDON YOU CAN BET THEY'RE GOING TO BE VERY CAREFUL WITH THIS ONE AFTER YEARS OF DELAY AND PRESSURE FROM THE EUROPEAN COMMUNITY THE ITALIAN GOVERNMENT ANNOUNCED IN MIDDECEMBER THAT IT WOULD END STATE PHONE COMPANY SIP SPA'S LONGTIME MONOPOLY ON CELLULAR TELEPHONES AND AWARD A SECOND LICENSE FOR THE ITALIAN PORTION OF THE PANEUROPEAN DIGITAL GSM SYSTEM TO A PRIVATE BIDDER BY THE END OF APRIL THE TOP TWO CONTENDERS ARE OMNITEL A CONSORTIUM LED BY OLIVETTI AND IN WHICH BELL ATLANTIC CORP HOLDS A 166 STAKE AND UNITEL A GROUP COMPRISING OLIVETTI'S LONGTIME RIVALS FIAT AND MEDIA GIANT FININVEST ALONG WITH THE UK'S VODAFONE GROUP PLC BELLSOUTH CORP OF ATLANTA STATE ENERGY GIANT ENI SPA AND MILLICOM INC OF NEW YORK ANOTHER BIDDER CONSIDERED LESS LIKELY TO WIN IS PRONTO ITALIA A CONSORTIUM OF ITALIAN COMPANIES WITH PACIFIC TELESIS GROUP OF CALIFORNIA AND MANNESMANN AG OF GERMANY THE COMPANY WITH THE MOST AT STAKE IS COMPUTER MAKER OLIVETTI WHICH AFTER THREE YEARS OF LOSSES AND RESTRUCTURING EFFORTS IS COUNTING ON DIVERSIFICATION INTO TELECOMMUNICATIONS IT'S CRUCIAL FOR US TO GET THAT LICENSE SAYS MR DE BENEDETTI THE CONTROLLING SHAREHOLDER IN THE COMPANY THE PROBLEM HE SAYS IS THAT THE COMPANY DOESN'T HAVE THE MEANS TO BE A GLOBAL PLAYER IN A NEW ENORMOUS MULTIMEDIA MARKET WHERE BORDERS ARE NOT DEFINED HE ADDS WHAT'S THE SOLUTION FORM NEW ALLIANCES AND FIND ENTRY POINTS IN THIS NEW WORLD OF DIGITALIZATION WHICH IS PUTTING TOGETHER TELECOMMUNICATIONS COMPUTERS AND MEDIA FOR OLIVETTI TELECOMMUNICATIONS IS OUR ENTRY POINT IN THIS WORLD MR DE BENEDETTI MET WITH PRIME MINISTER CARLO CIAMPI ABOUT THE CONTRACT LAST FALL EXPLAINING THAT IT WAS CRITICAL FOR OLIVETTI'S FUTURE AND THAT LOSING THE CONTRACT MAY RESULT IN SIGNIFICANT LAYOFFS OLIVETTI'S EFFORT AT DOWNSIZING ITS COMPUTER BUSINESS IS ONLY ACHIEVABLE IF IT CHANNELS ITS WORKERS INTO TELECOMMUNICATIONS SAYS PAUL DIONNE AN ANALYST WITH PASFIN SECURITIES IN MILAN IF THEY DON'T GET THE LICENSE YOU CAN BET THERE WILL BE NUMEROUS SHUTDOWNS AND THE MARKET WILL TAKE IT VERY BADLY UNITEL THE FIATFININVESTENI CONSORTIUM ARGUES THAT THE CELLULAR LICENSE IS AN EXTENSION OF ITS CORE AUTO AND MEDIA BUSINESSES FIAT WHICH HAS A JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORP FOR DATATRANSMISSION SERVICES WANTS TO FURTHER DEVELOP DATA AND VOICE TRANSMISSION FOR THE TRANSPORTATION AND RETAIL SECTORS SAYS NICOLO NEFRI CHIEF EXECUTIVE OF THE UNITEL CONSORTIUM FURTHERMORE FININVEST WHICH OWNS THREE NATIONAL TELEVISION NETWORKS AND A DEPARTMENTSTORE CHAIN PLANS TO DEVELOP MULTIMEDIA APPLICATIONS WITH THE LICENSE JUST BECAUSE SOMEONE HAS THE HARDWARE LIKE OLIVETTI DOESN'T MEAN THEY HAVE THE SERVICE CULTURE AND EXPERIENCE NECESSARY MR NEFRI SAYS THAT'S LIKE SAYING APPLE COMPUTER SHOULD MANAGE THE CELLULAR NETWORK IN THE US THE BIDDING WAR IS JUST THE LATEST EXAMPLE OF CORPORATE COMBAT THE THREE INDUSTRIAL BARONS HAVE WAGED AGAINST ONE ANOTHER PERIODICALLY IN A COUNTRY WHERE A FEW FAMILIES STILL CONTROL THE BULK OF PRIVATE INDUSTRY BUSINESS CAN AND DOES BECOME VERY PERSONAL MR DE BENEDETTI AND MR BERLUSCONI ALREADY ARE IN THE MIDST OF A VICIOUS THREEYEAROLD WAR OF WORDS FOLLOWING A HIGHPROFILE BATTLE FOR CONTROL OF THE MONDADORI PUBLISHING HOUSE IN 1991 AFTER DIVIDING MONDADORI'S NEWSPAPERS AND MAGAZINES BETWEEN THEM THE TWO NOW USE THE PERIODICALS TO SNIPE AT EACH OTHER IN A DECEMBER COVER STORY IN THE DE BENEDETTICONTROLLED ESPRESSO NEWSMAGAZINE MR BERLUSCONI WAS PORTRAYED WITH A PINOCCHIO NOSE AND WAS CALLED THE MAGNIFICENT LIAR MR BERLUSCONI'S PANORAMA MAGAZINE OFTEN ATTACKS MR DE BENEDETTI'S VARIOUS BUSINESSES WHEN COMPETITORS AREN'T POINTING FINGERS AT ONE ANOTHER THEY TAKE AIM AT SIP THE STATE PHONE OPERATOR BIDDERS ACCUSE SIP OF DOING EVERYTHING LEGAL AND ILLEGAL TO PRESSURE THE GOVERNMENT TO POSTPONE AWARDING THE SECOND LICENSE UNTIL IT HAS REACHED A DOMINANT POSITION IN THE CELLULAR MARKET AFTER THREE YEARS OF CELLULAR SERVICE SIP HAS 12 MILLION SUBSCRIBERS PRIMARILY TO ITS ANALOG CELLULAR SYSTEM THERE'S NO DOUBT SIP WAS INSTRUMENTAL IN DELAYING THE WHOLE THING SAYS NATWEST'S MR COLUCCI IN THAT BUSINESS THEY WANT TO REACH CRITICAL MASS AND NOW THEY'VE REACHED ONE MILLION SUBSCRIBERS SO THEY'LL HAVE A HARD CORE OF USERS THE GOVERNMENT'S DELAY IN OPENING THE MARKET TO COMPETITION BECAME SO CONTROVERSIAL LAST SUMMER THAT ITALY'S INDEPENDENT ANTITRUST AUTHORITY STEPPED IN ISSUING A CRITICAL REPORT ANY FURTHER DELAY IN OPENING UP TO COMPETITION RISKS COMPROMISING THE FUTURE ORDER OF THE DIGITAL CELLULAR PHONE MARKET THE AUTHORITY SAID IN ITS REPORT THE REPORT SAID AMONG OTHER THINGS THAT SIP HAD AN ADVANTAGE OVER COMPETITORS BECAUSE IT HAS ALREADY BEEN ABLE TO INVEST IN THE NEW GSM SYSTEM WHILE IT WILL TAKE COMPETITORS AT LEAST 18 MONTHS TO CATCH UP SIP ALSO HAD BEEN SELLING AND ADVERTISING THE GSM TO THE PUBLIC IN VIOLATION OF THE GOVERNMENT'S CONCESSION WHICH GRANTED SIP ONLY EXPERIMENTAL OPERATION RIGHTS UNTIL A SECOND OPERATOR IS NAMED THE ANTITRUST AUTHORITY SAID THE LIMITATION OF THE MARKET PROLONGS THE PERIOD NECESSARY TO REACH A BREAKEVEN POINT FOR COMPETITORS THE AUTHORITY SAID SIP RESPONDS SIP DENIES IT HAS LOBBIED TO DELAY OPENING THE MARKET SIP HAS ALWAYS BEEN AMENABLE TO THE OPENING TO A SECOND OPERATOR SAYS ERNESTO PASCALE SIP CHAIRMAN IN FACT WE ALREADY ASKED THE MINISTER OF POST AND TELECOMMUNICATIONS A WHILE AGO TO SPEED UP THE RELEVANT DECISIONS SIP ARGUES THAT IT PREVIOUSLY HAD BEEN GRANTED THE TELECOMMUNICATIONS MONOPOLY CONCESSION FOR ITALY UNTIL 2004 WITH THE INTRODUCTION OF A SECOND OPERATOR SIP SAYS IT IS ENTITLED TO COMPENSATION FOR THE LOSS OF FUTURE BUSINESS ALTHOUGH GOVERNMENT LAWYERS ARGUE THAT THE ORIGINAL CONCESSION DID NOT INCLUDE GSM DIGITAL TECHNOLOGY THE TELECOMMUNICATIONS MINISTRY HAS AGREED TO NEGOTIATE WITH SIP OVER POSSIBLE COMPENSATION MEANWHILE SIP SAYS IT HAS STOPPED ADVERTISING THE GSM SYSTEM UNTIL THE SECOND LICENSE IS AWARDED HOWEVER ALMOST EVERY DAY THERE IS A NEWSPAPER AD BY GSM HARDWARE SUPPLIERS THAT FEATURES PHOTOS OF SIP'S GSM PHONES WHILE FEW OF THE PLAYERS WILL EMERGE WITHOUT BATTLE SCARS THE BIG WINNER SHOULD BE CONSUMERS ANALYSTS SAY THE INTRODUCTION OF COMPETITION INTO ITALY'S BUREAUCRATIC STATE TELECOMMUNICATIONS SECTOR IS DESTINED TO REVOLUTIONIZE THE WAY BUSINESS IS DONE HERE ACCORDING TO NATWEST SECURITIES PRICES FOR USING CELLULAR PHONES IN ITALY SHOULD FALL IN LINE WITH THOSE IN OTHER EUROPEAN COUNTRIES THAT RECENTLY OPENED THEIR MARKETS AFTER COMPETITION WAS INTRODUCED IN THE GERMAN CELLULAR MARKET IN MID1992 PRICES IMMEDIATELY FELL 30 TO CONSUMERS THAT CAN ONLY BE GOOD NEWS FOR ITALIANS WHO HAVE EMBRACED THEIR TELEFONINI AS THE LATEST STATUS SYMBOL FOR THE '90S MS BANNON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S MILAN BUREAU 9402110110 940211 FRANCE'S MOVES TO SELL STATE COMPANIES SPARK ONE BIG QUESTION WHO'S NEXT SPECIAL TO THE WALL STREET JOURNAL PARIS ONCE THE FRENCH GOVERNMENT DISPOSES OF ITS MAJORITY STAKES IN INSURER UNION DES ASSURANCES DE PARIS AND AUTO MAKER RENAULT SA DECIDING WHICH STATEOWNED ENTERPRISES WILL BE PRIVATIZED NEXT BECOMES A RISKIER GAME INVESTORS AREN'T EXPECTED TO NEED MUCH PRODDING TO SNAP UP UAP SHARES WHICH MAY BE OFFERED IN THE NEXT THREE TO FOUR WEEKS AND WHICH COULD RAISE UP TO 30 BILLION FRANCS 5 BILLION FOR THE STATE THE MOVE TO SELL UAP CONFORMS TO PRIME MINISTER EDOUARD BALLADUR'S PREFERENCE FOR SURE WINNERS IN THE EARLY STAGES OF A PRIVATIZATION PROGRAM THAT IS SUPPOSED TO INCLUDE 21 COMPANIES OVER FIVE YEARS THE GOVERNMENT SO FAR HAS SOLD MOSTLY WELLKNOWN FINANCIALLY SOLID COMPANIES HYDROCARBONS PRODUCER SOCIETE NATIONALE ELF AQUITAINE BANQUE NATIONALE DE PARIS BANQUE HERVET AND CHEMICAL/PHARMACEUTICAL GROUP RHONEPOULENC SA BUT THE SELECT GROUP IS QUICKLY BEING WHITTLED DOWN RENAULT COMING OFF A FAILED MERGER WITH SWEDEN'S AB VOLVO AND FACING CYCLICAL WEAKNESS IN THE AUTO INDUSTRY IS THE ONLY OTHER COMPANY THAT THE GOVERNMENT HAS PLEDGED TO PRIVATIZE THIS YEAR DESPITE A TARNISHED IMAGE FROM THE VOLVO AFFAIR RENAULT'S STRONG EUROPEAN MARKET PRESENCE AND INNOVATIVE PRODUCT RANGE LIKELY WILL ATTRACT PLENTY OF BIDS ANALYSTS SAY THE COMPANY USED TO BE CONSIDERED A LAME DUCK BUT SINCE 1987 RENAULT HAS BEEN RUN AS A PRIVATE COMPANY AND IT HAS COMPLETELY RESPECTABLE RESULTS NOTED ROLAND GAGNON OF MASSONAUD FONTENAY KERVERN SA A FRENCH BROKERAGE UNIT OF THE NETHERLAND'S ABNAMRO HOLDING NV SELLING IT WON'T BE A PROBLEM THE SALES ALREADY SET FOR THIS YEAR WILL BRING IN LOTS OF CASH ELF AND UAP ALONE WILL GENERATE PRIVATIZATION RECEIPTS WELL BEYOND THE 1994 TARGET OF 55 BILLION FRANCS BUT AFTER THEM WHAT'S LEFT THERE IS INDEED A QUALITY ISSUE NOTED ERIC TAZEBERNARD AN EQUITIES FUND MANAGER AT BANQUE INDOSUEZ A UNIT OF FRANCE'S CIE DE SUEZ THE COMPANIES ALREADY SOLD OR ON BOARD ARE VERY HIGHLY REGARDED SO THOSE TO FOLLOW COULD PALE IN COMPARISON SOME OBSERVERS THINK THE PRIME MINISTER MAY WAIT UNTIL 1995 TO GIVE SOME WEAKER COMPANIES TIME TO WORK OUT THEIR FINANCIAL PROBLEMS WITH A PRESIDENTIAL ELECTION COMING UP IN MARCH 1995 OBSERVERS ALSO SUGGEST MR BALLADUR MAY TRY TO AVOID SELLING STATE GROUPS THAT MAY SUBSEQUENTLY TRIM THEIR BLOATED PAYROLLS THAT WOULDN'T WIN MR BALLADUR MANY VOTES BUT IF PRIVATIZATIONS CONTINUE THE SAFEST CHOICE LIKELY WOULD BE ONE OR MORE OF THE INSURERS REMAINING ON THE LIST ASSURANCES GENERALES DE FRANCE GROUPE DES ASSURANCES NATIONALES CAISSE CENTRALE DE REASSURANCE AND CAISSE NATIONALE DE PREYVOYANCE ALL ARE IN RELATIVELY GOOD FINANCIAL SHAPE EXCEPT FOR AGF WHICH HAS YET TO FULLY PURGE LOSSES AT ITS REAL ESTATE FINANCING AFFILIATE SOME MARKET WATCHERS ARE CONCERNED THAT AFTER UAP AND BNP DEMAND FOR FINANCIAL SHARES WILL HAVE BEEN SATURATED FOR THE SHORT TERM BUT RICHARD DAVIDSON WHO FOLLOWS THE FRENCH MARKET FOR MORGAN STANLEY INTERNATIONAL IN LONDON DISAGREES AS LONG AS THEY'RE PRICED RIGHT I DON'T SEE ANY PROBLEM THERE'S STILL PLENTY OF DEMAND FROM FUND MANAGERS AS WELL AS INDIVIDUAL INVESTORS FOR PRIVATIZING FINANCIALS THE LIQUIDITY IS THERE ON THE INDUSTRIAL SIDE A FAVORITE SELLOFF CANDIDATE THIS YEAR IS SEITA THE CIGARETTE GROUP THAT PRODUCES THE GAULOISES BRAND ITS DOMINATION OF DOMESTIC CIGARETTE DISTRIBUTION MAKES IT A GLITTERING PRIZE FOR A NUMBER OF FOREIGN TOBACCO GROUPS BA T INDUSTRIES PLC PHILIP MORRIS COS AND FRANCE'S BOLLORES TECHNOLOGIES HAVE EXPRESSED INTEREST IN A STAKE IN SEITA PECHINEY SA THE ALUMINUM AND PACKAGING CONGLOMERATE REMAINS A WILD CARD THAT COULD SOON SHOW UP ON THE AUCTION BLOCK PECHINEY CHAIRMAN JEAN GANDOIS HAS SAID MORE THAN ONCE THAT HE WILL USE THE FIRST WINDOW THAT OPENS TO PRIVATIZE PECHINEY BUT HE ACKNOWLEDGES THAT A SLUMP IN ALUMINUM PRICES MAKES ANY SHORTTERM MOVE IMPROBABLE THE GOVERNMENT IS SEEN LESS PRESSED TO RELEASE ITS GRIP ON THE CLUTCH OF DEFENSE COMPANIES INCLUDED IN ITS LIST OF 21 CANDIDATES THOMSON SA WHICH MAKES MISSILES RADAR AND OTHER WARFARE ELECTRONICS AIRCRAFT ENGINE MAKER SNECMA AND AEROSPATIALE WHICH PRIMARILY MAKES COMMERCIAL JETS BUT ALSO HAS A MISSILES SIDELINE THEN THERE ARE THE BIG MONEYLOSERS AIR FRANCE COMPUTER MAKER GROUPE BULL SA STEEL GROUP USINOR SACILOR AND CREDIT LYONNAIS THE RETAIL BANK IN THE FIRST THREE CASES THE GOVERNMENT WILL BE BUSY ENOUGH THIS YEAR TRYING TO WARD OFF EUROPEAN UNION OFFICIALS WHO DISAPPROVE OF THE LARGE CASH INFUSIONS USED TO KEEP AIR FRANCE BULL AND USINOR OUT OF BANKRUPTCY IT SEEMS UNLIKELY THE GOVERNMENT WOULD WANT TO DISPOSE OF THESE ASSETS IN THEIR MOST FRAGILE CONDITIONS AS FOR CREDIT LYONNAIS OFFICIALS EARLIER THIS WEEK CONFIRMED FRENCH NEWS REPORTS THAT THE GOVERNMENT IS CONSIDERING A RECAPITALIZATION OF THE BANK 9402110109 940211 ROGERS SEEN CLOSER TO LAUNCHING BID FOR MACLEAN HUNTER TORONTO ROGERS COMMUNICATIONS INC APPEARS TO BE A STEP CLOSER TO LAUNCHING ITS PROPOSED BID TO ACQUIRE MACLEAN HUNTER LTD A CABLETELEVISION BROADCASTING AND PUBLISHING CONCERN BASED HERE THE ONTARIO SECURITIES COMMISSION ISSUED AN ORDER THAT BLOCKS MACLEAN HUNTER FROM TENDERING OR VOTING A BLOCK OF 363 MILLION MACLEAN SHARES THAT ARE UNDER ITS CONTROL IN CONNECTION WITH ANY BID FOR MACLEAN HUNTER'S STOCK AS REPORTED ROGERS A TELECOMMUNICATIONS CONCERN HAS EXPRESSED CONCERN OVER THE POSSIBLE TAX CONSEQUENCES OF HAVING TO ACQUIRE THE BLOCK AND SOUGHT REASSURANCE FROM REGULATORS BEFORE PROCEEDING WITH ITS PROPOSED BID FOR MACLEAN HUNTER THE RULING FROM REGULATORS CAME AFTER MACLEAN HUNTER OPTED NOT TO CHALLENGE AN APPLICATION BY ROGERS FOR THE ORDER MACLEAN HUNTER ALSO AGREED NOT TO DISPOSE OF THE SHARES WITHOUT GIVING ROGERS TWO DAYS' WRITTEN NOTICE OF ITS INTENT TO DO SO PROVIDED THAT ROGERS MAKES ITS OFFER BY 5 PM EST NEXT FRIDAY THE COMPROMISE WORKED OUT BY LAWYERS FOR THE TWO COMPANIES REMOVES ANY NEED FOR A REGULATORY HEARING AND WOULD APPEAR TO CLEAR THE WAY FOR ROGERS TO MAKE ITS LONGAWAITED BID GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS DECLINED TO COMMENT ON WHEN ROGERS MIGHT MAKE AN OFFER THAT IS A MATTER FOR OUR BOARD TO DISCUSS HE SAID ROGERS SAID LAST WEEK IT IS INTERESTED IN ACQUIRING MACLEAN HUNTER FOR A COMBINATION OF CASH AND STOCK AT CURRENT MARKET VALUES FOR MACLEAN HUNTER SHARES A BID FOR THE COMPANY COULD BE WORTH 293 BILLION CANADIAN DOLLARS US218 BILLION THAT EXCLUDES THE 363 MILLIONSHARE BLOCK IN APPARENT SPECULATION THAT A FORMAL OFFER COULD COME SHORTLY SHARES OF MACLEAN HUNTER ROSE IN TORONTO STOCK EXCHANGE TRADING YESTERDAY TO CLOSE AT C17 UP 375 CANADIAN CENTS MOST ANALYSTS HAVE SAID A FIRST BID BY ROGERS IS LIKELY TO BE WORTH AT LEAST C17 A SHARE SHARES OF ROGERS FELL TO C20 DOWN 625 CANADIAN CENTS 9402110108 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD WANNA BET SOME PREDICTIONS FOR THE WIRELESS AGE AND OUR ODDS THAT THOSE PREDICTIONS WILL COME TRUE BY G CHRISTIAN HILL CELLULAR PHONES ARE BEING WAY OVEREMPHASIZED PEOPLE JUST DON'T SPEND THAT MUCH TIME IN THEIR CARS HERSCHEL SHOSTECK 1986 BUSINESS FIRST MAGAZINE LOUISVILLE KY PREDICTING THE FUTURE OF NEW TECHNOLOGY IS PERILOUS AS THOSE WHO TRIED IN CELLULAR'S INFANCY CAN ATTEST IN 1986 MR SHOSTECK A SILVER SPRING MD CONSULTANT FORECAST A TOTAL OF 15 MILLION CELLULAR USERS IN THE US BY 1990 MCKINSEY & CO WAS EVEN MORE CONSERVATIVE COMPILING AN EARLIER STUDY FOR AMERICAN TELEPHONE & TELEGRAPH CO FORECASTING ONLY 900000 USERS BY THE YEAR 2000 OUT OF HUNDREDS OF OTHER PREDICTIONS ONLY A HANDFUL WERE MUCH MORE OPTIMISTIC THE ACTUAL 1990 FIGURE 53 MILLION AND BY THE END OF LAST YEAR AN ESTIMATED 14 MILLION PEOPLE HAD CELLULAR PHONES GROWTH FORECASTS FOR MOST NEW TECHNOLOGIES ARE WILDLY OVEROPTIMISTIC MAINLY BECAUSE THE PEOPLE WHO MADE THEM HAVE BEEN SEDUCED BY TECHNOLOGICAL WONDER SAYS STEVEN P SCHNAARS A PROFESSOR OF MARKETING AT BARUCH COLLEGE IN NEW YORK AND AUTHOR OF A BOOK ON THE SUBJECT WITH CELLULAR PHONES HOWEVER EXACTLY THE OPPOSITE WAS TRUE HOW COULD SO MANY FORECASTERS FALL SO FAR SHORT OF THE MARK BY REPEATING A MISTAKE THEY MADE WITH COMPUTERS IN BOTH CASES THEY FAILED TO GRASP THE RELENTLESS ADVANCE IN MICROPROCESSORS AND OTHER MICROCHIPS ABETTED BY THE DEVELOPMENT OF SOFTWARETRENDS THAT DROVE UP PERFORMANCE AND DROVE DOWN PRICES WITH UNEXPECTED RAPIDITY MOREOVER DEMAND FOR MOBILITY AND FOR QUICK ACCESS TO INFORMATION HAS PROVED FAR VASTER THAN EXPECTED DEMAND FOR NEW WIRELESS PRODUCTS AND SERVICES SUCH AS DIGITAL DATA NETWORKS AND HANDHELD DIGITAL COMMUNICATORS SHOULD BE DRIVEN BY THE SAME FORCES BUT THINGS GET TRICKY WHEN OTHER VARIABLES ARE FACTORED IN SUCH AS THE LACK OF STANDARDS FOR WIRELESS TRANSMISSION THE FRAGMENTED NATURE OF EXISTING AND PROPOSED WIRELESS NETWORKS AND THE UNCERTAIN NATURE OF THE COMPETITION AT LEAST FOR NOW MARKETRESEARCH FIRMS AND INDUSTRY OFFICIALS ARE MOVING TOWARD A CONSENSUS THAT THE GROWTH CURVE FOR NEW WIRELESS PRODUCTS AND SERVICES WILL RESEMBLE A HOCKEY STICK WITH A FAIRLY LONG BLADE THAT IS SEVERAL YEARS OF DORMANCY AND SLOW ACCEPTANCE AND THEN AN EXPLOSION OF DEMAND AFTER THE TECHNOLOGY HAS BEEN REFINED AND COSTS DRIVEN DOWN KEEPING IN MIND THAT FORECASTING MICROCHIPBASED TECHNOLOGIES IS MUCH MORE ART THAN SCIENCE WE NOW OFFER SOME SPECIFIC PREDICTIONS BY INDUSTRY EXPERTS AND EXECUTIVES ABOUT THE WIRELESS FUTURE GLEANED FROM INTERVIEWS AND OTHER PUBLICATIONS THE FORECASTS ARE ACCOMPANIED BY OUR ASSESSMENT OF PROBABILITY FROM 0 LEAST PROBABLE TO 10 MOST PROBABLE HERSCHEL SHOSTECK HERSCHEL SHOSTECK ASSOCIATES IT'S LIKELY EVERY CREDIBLE FORECAST FOR CELLULAR PHONES IS LOW HE NOW EXPECTS THE NUMBER OF USERS WORLDWIDE TO JUMP TO AROUND 100 MILLION IN THE YEAR 2000 FROM 30 MILLION NOW BUT WOULDN'T BE SURPRISED IF IT WERE CLOSER TO 200 MILLION PROBABILITY 8 WHO COULD GO WRONG WITH A FORECAST LIKE THAT MR SHOSTECK HAS APPARENTLY LEARNED HIS LESSON HE CITES LOOMING PRICE COMPETITION AND HUGE NEW DEMAND FROM CHINA AND EASTERN EUROPE CRAIG MCCAW CHIEF EXECUTIVE OFFICER MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH THE HOME TELEPHONE WILL GO THE WAY OF THE DINOSAURS DRIVEN TO EXTINCTION BY PERSONAL DIGITAL ASSISTANTS PROBABILITY 1 MAYBE IN THE YEAR 2020 BUT FOR A LONG TIME WIRELESS DATA DEVICES WILL BE LIMITED LARGELY TO THE MOST AFFLUENT 20 OF THE POPULATION MR MCCAW MAY HAVE FALLEN INTO WHAT PROF SCHNAARS CALLS THE TRAP OF UNBRIDLED OPTIMISM BROUGHT ON BY A LOVE OF EXOTIC TECHNOLOGY BOOZALLEN & HAMILTON NEW YORK PREDICTS 14 MILLION WIRELESS DATA DEVICES IN USE BY THE YEAR 2000 EXPLAINING THAT WITH THE IMMINENT INTRODUCTION OF NETWORKS AND EASYTOUSE SOFTWARE THE MARKET IS MORE ADVANCED THAN IT LOOKS PROBABILITY 8 A BOOM IN WIRELESS SUBNOTEBOOK COMPUTERS SHOULD MAKE THIS POSSIBLE AND THE PREDICTION IS IN LINE WITH MOST OTHER MARKET RESEARCHERS' FORECASTS PROBABILITY 5 THAT'S AN AWFUL LOT OF PEOPLE WHO DON'T CARE HOW MUCH A PHONE CALL COSTS BUT THEN LOOK AT THE EXPLOSION IN PORTABLE COMPUTERS AND ELECTRONIC MAIL AKIRA MITARAI GENERAL MANAGER SHARP CORP'S INFORMATION SYSTEMS GROUP AT A SANTA CLARA CALIF CONFERENCE THE MARKET FOR PDAS WILL GROW TO 50 MILLION UNITS BY THE YEAR 2000 GASTON BASTIENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION ON MR MITARAI'S FORECAST ABSOLUTELY IT COULD GO EVEN HIGHER PROBABILITY 0 FOR BOTH THE CHINESE WOULD HAVE TO BUY THESE THINGS IN LIEU OF CHOPSTICKS MARC PORAT CHIEF EXECUTIVE OFFICER GENERAL MAGIC INC MOUNTAIN VIEW CALIF 1995 WILL BE THE YEAR OF THE MASS MARKET FOR HANDHELD WIRELESS DEVICES ANDREW SEYBOLD EDITOR OUTLOOK ON MOBILE COMPUTING BROOKDALE CALIF THE SHARP INCREASE IN USERS WILL BEGIN IN 1996 PROBABILITY 6 FOR MR PORAT AND 7 FOR MR SEYBOLD GIVEN THE CHAOTIC STATE OF WIRELESS NETWORKS 1997 IS A SAFER BET AND SO SAY MARKETRESEARCH FIRMS SUCH AS BIS STRATEGIC DECISIONS NORWELL MASS MR SEYBOLD EVERYONE WHO HAS EVER PREDICTED THE YEAR OF THE WHATEVER HAS BEEN WRONG PROBABILITY 8 THAT'S ROUGHLY THE PROBABILITY PROF SCHNAARS CAME UP WITH ALSO MR PORAT DURING THE NEXT THREE YEARS THERE WILL BE OPPORTUNITIES FOR COMPANIES TO LOSE VERY LARGE AMOUNTS OF MONEY PROBABILITY 10 THERE ISN'T ROOM FOR ALL THE WIRELESS NETWORKS COMPANIES PLAN TO BUILD FOR EXAMPLE SOMETHING HAS TO GIVE DON VALENTINE VENTURE CAPITALIST SEQUOIA CAPITAL SANTA CLARA CALIF THESE FANCY WIRELESS NETWORKS I'D BE SURPRISED IF MUCH EXISTED BEFORE THE TURN OF THE CENTURY PROBABILITY 3 IT'S TRUE THAT THE COMPLEXITY OF USING WIRELESS NETWORKS COULD BE A BIG OBSTACLE BUT THAT AS WILLIAM H GATES WOULD SAY IS JUST A SOFTWARE PROBLEM WILLIAM H GATES CHAIRMAN OF MICROSOFT CORP I THINK THE IDEA OF INFORMATION AVAILABLE AT YOUR FINGERTIPS AND INSTANT GLOBAL COMMUNICATION IS REALIZABLE IT WILL HAPPEN SUBSTANTIALLY OVER THE NEXT FOUR TO FIVE YEARS PROBABILITY 10 WELL MAYBE 9 WHY ELSE WOULD WE DO THIS REPORT MICHAEL SPINDLER CHIEF EXECUTIVE OFFICER APPLE FORECASTS COME AND GO AND MANY OF THEM ARE FORGOTTEN PROBABILITY 10 ABSOLUTELY THAT'S HOW MARKETRESEARCH COMPANIES STAY IN BUSINESS MR HILL IS THE CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9402110107 940211 AT&T PLANS TO SLASH JOBS AT MAJOR UNIT FIRM TO CUT UP TO 15000 IN LONGDISTANCE SECTOR IN BID TO BOOST BUSINESS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL CUT AS MANY AS 15000 JOBS OR 15 OF THE WORK FORCE IN ITS GIANT LONGDISTANCE SERVICES UNIT IN A BID TO BOOST PROFITS IN THE SLOWGROWTH BUSINESS THE REDUCTIONS SET OVER TWO YEARS AND TO INCLUDE 8000 MANAGERS COME AS THE COMMUNICATION SERVICES GROUP BATTLES MCI COMMUNICATIONS CORP AND SPRINT CORP FOR CONSUMER AND BUSINESS CUSTOMERS THE GROUP WHICH ACCOUNTS FOR MORE THAN 40 BILLION OF AT&T'S ROUGHLY 67 BILLION IN ANNUAL REVENUE EMPLOYS 96500 PEOPLE OF A TOTAL WORK FORCE OF 309000 SINCE ITS BREAKUP A DECADE AGO AT&T ALREADY HAS CUT MORE THAN 140000 JOBS THE CONSUMER UNIT IN THE COMMUNICATION SERVICES GROUP WILL SEE THE BIGGEST CUTS AS MANY AS 9000 JOBS MORE THAN HALF OF THEM IN MANAGEMENT THE BUSINESS SERVICES UNIT WHICH SELLS LONGDISTANCE SERVICES TO SMALL BUSINESSES AND CORPORATIONS WILL TRIM ABOUT 6000 POSITIONS THE CUTS ARE BEING DIRECTED BY THE GROUP'S CHIEF EXECUTIVE OFFICER ALEX MANDL WHO DIDN'T RULE OUT FURTHER CUTS IF THE CURRENT PLAN DOESN'T BOOST REVENUE AND PROFITS HE SAID HE WANTS TO BOOST THE GROUP'S ALMOST FLAT REVENUE GROWTH TO AT LEAST THE INDUSTRY RATE OF 4 TO 5 MCI'S REVENUE BY CONTRAST IS CURRENTLY GROWING AT THREE TIMES THE INDUSTRY RATE SPRINT'S NUMBERS ARE ALSO SHOWING STEADY IMPROVEMENT ALTHOUGH LESS ROBUST THAN MCI'S I'M DETERMINED TO GET ON THIS GROWTH CURVE MR MANDL SAID IN AN INTERVIEW IF WE CAN GET ON IT THE JOB CUTS SHOULD BE BEHIND US BUT HE NOTED UNLESS YOU GROW THE BUSINESS IN LINE WITH THE INDUSTRY'S GROWTH YOU'LL FACE AN ENVIRONMENT OF DOWNSIZING HE SAID THE CUTS WILL REMOVE SOME MANAGEMENT LAYERS AND RID THE UNIT OF OVERLAPPING FUNCTIONS AT&T HAS ESTIMATED THAT IT CAN SAVE ABOUT 900 MILLION A YEAR THROUGH THE CUTS BY INSTALLING NEW TECHNOLOGY IN ITS LONGDISTANCE NETWORK AND OTHER STREAMLINING THOSE SAVINGS SHOULD COME IN HANDY IF AT&T MUST FIGHT A PRICE WAR WITH THE LEANER MCI FOR NOW LONGDISTANCE PRICES ARE HEADING UP THANKS TO NUMEROUS AT&T RATE INCREASES IN THE PAST YEAR THE LATEST CUTS ADD TO ALREADY ANNOUNCED PLANS TO CUT 6000 OPERATORS OUT OF 18000 AT&T HAS ALSO BEGUN CUTTING 7500 JOBS AT ITS COMPUTER UNIT GLOBAL INFORMATION SOLUTIONS FORMERLY NCR CORP AND ABOUT 1500 JOBS AT ITS INTERNAL INFORMATION SYSTEMS OPERATIONS REACTION TO AT&T'S CUTBACKS FROM WORKERS AND UNION LEADERS WAS SWIFT AND BITTER THERE ARE MANY PEOPLE HERE WHO COME TO WORK EVERY DAY AND ARE NUMB NOT KNOWING WHETHER THEY'RE NEXT SAID ONE HEADQUARTERS STAFFER WHO ASKED NOT TO BE IDENTIFIED JAMES IRVINE VICE PRESIDENT OF AT&T'S LARGEST UNION CALLED AT&T A HEALTHY COMPANY PLAYING TO WALL STREET LAURA UNGER PRESIDENT OF CWA LOCAL 1150 IN NEW YORK ASKED WHEN IS ENOUGH PROFIT ENOUGH HER LOCAL HAS BEEN CUT TO LESS THAN 1000 MEMBERS FROM 2600 IN THREE YEARS DESPITE THE FACT THAT AT&T'S FOURTHQUARTER OPERATING PROFIT MARGIN OF 104 WAS THE HIGHEST IN THE COMPANY'S HISTORY AT&T EXECUTIVES INTERNALLY HAD DENIED A WALL STREET JOURNAL REPORT IN EARLY DECEMBER THAT SAID BIG CUTS WERE PLANNED IN ITS CONSUMER UNIT IN A MEMO TO HIS EMPLOYEES JOSEPH NACCHIO RECENTLY APPOINTED PRESIDENT OF CONSUMER SERVICES CALLED THE JOURNAL REPORT MISLEADING HE ADDED WE DO NOT HAVE DEFINITIVE WORKFORCE REDUCTION PLANS AT THIS TIME WE WILL TAKE EVERY INITIATIVE TO DRIVE OTHER COSTS OUT OF THE BUSINESS BEFORE RESORTING TO WORKFORCE REDUCTIONS YESTERDAY AN AT&T SPOKESMAN SAID ALL THE POINTS MADE IN THAT MEMO AT THAT TIME WERE COMPLETELY ACCURATE AT&T SAID IT WILL OFFER NONMANAGEMENT EMPLOYEES WHO ARE AFFECTED BY THE REDUCTION AS MUCH AS 104 WEEKS OF WAGES FOR THE MOSTSENIOR PEOPLE MANAGERS WHO LEAVE THE COMPANY WILL GET AS MUCH AS 42 WEEKS SALARY DEPENDING ON THEIR SENIORITY AT&T SAID AT&T ABSOLUTELY HAS TO MAKE THESE CUTS IF MANDL IS GOING TO DOUBLE THE REVENUE GROWTH IN LONG DISTANCE SAID JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC HAVING TOO MANY PEOPLE NOT ONLY HURTS PROFITS IT PARALYZES THE COMPANY'S ABILITY TO COMPETE AS PART OF THE CUTBACKS AT THE CONSUMER UNIT AT&T WILL CONSOLIDATE SALES AND SERVICE OPERATIONS AND CLOSE CENTERS IN PROVIDENCE RI CHARLESTON WVA BLOOMINGTON MINN CHEYENNE WYO ITASCA ILL PLEASANTON CALIF AND SILVER SPRING MD THE 8000 MANAGEMENT CUTS WILL INCLUDE HEADQUARTERS STAFF AND ADMINISTRATIVE SUPPORT FUNCTIONS WHILE THE REST WILL BE NONMANAGEMENT POSITIONS IN OPERATIONS AND CLERICAL AREAS AT&T SAID IT WILL BEGIN NOTIFYING INDIVIDUAL EMPLOYEES ABOUT THE CUTS BY THE END OF MARCH 9402110106 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BASICS LOOK NO WIRES THE CORD HAS BEEN CUT AND COMMUNICATIONS MAY NEVER BE THE SAME BY G CHRISTIAN HILL BRACE YOURSELF FOR A NEW WORLD IT'S A WORLD IN WHICH INVISIBLE COMMUNICATIONS NETWORKS GIRD EVERY MAJOR METROPOLITAN AREA LINK WORKERS INSIDE OFFICE BUILDINGS AND WAREHOUSES AND SURROUND THE EARTH VIA FLOTILLAS OF SATELLITES IT'S A WORLD IN WHICH WIRELESS DEVICES COMBINE THE FUNCTIONS OF TELEPHONES AND COMPUTERS SENDING AND RECEIVING VOICE TEXT AND GRAPHICS AND SIFTING THROUGH REAMS OF INFORMATION ON BEHALF OF THEIR HUMAN MASTERS IT'S A WORLD IN WHICH WE ARE ALL REACHABLE ANYTIME ANYPLACE AND IT'S A WORLD ABOUT WHICH THE MAIN QUESTION ISN'T IF BUT WHEN IT'S AMAZING SAYS IRA BRODSKY PRESIDENT OF DATACOMM RESEARCH CO A WILMETTE ILL TELECOMMUNICATIONS CONSULTING FIRM YOU GET THIS SENSE THAT IT'S A VOLCANO ABOUT TO ERUPT IN SOME WAYS IT ALREADY HAS ABOUT 30 MILLION CELLULAR PHONES ARE IN USE WORLDWIDE A NUMBER EXPECTED TO GROW TO NEARLY 100 MILLION BY THE YEAR 2000 PAGERS BLANKET THE WORLD IN MANY PLACES AS A SUBSTITUTE FOR INADEQUATE OR NONEXISTENT TELEPHONE SERVICE ABOUT THREE MILLION ARE IN USE IN CHINA COMPARED WITH 100000 THREE YEARS AGO BUT THE REALLY POWERFUL STUFF LIES JUST AHEAD MUCH OF THE FOUNDATION WILL BE LAID IN THE NEXT YEAR OR TWO AND THE VISION OF THE WIRELESS WORLD DESCRIBED ABOVE SHOULD BE A REALITY WITHIN FIVE TO SEVEN YEARS ALL OF WHICH LEADS TO THE FIRST QUESTION WHY NOW THE EASY ANSWER TECHNOLOGY FOR YEARS TECHNOLOGY AND COSTS HAVE CONSPIRED TO ENSURE THAT MOST COMMUNICATIONS FLOW THROUGH WIRES AND THE GADGETS WE USE TO COMMUNICATE PHONES FAXES COMPUTERS WHATEVER WERE TETHERED TO THOSE WIRES BUT ADVANCES IN MICROCHIPS AND SOFTWARE AND THE BUILDING OF SOPHISTICATED WIRELESS NETWORKS ARE QUICKLY CHANGING THE EQUATION START WITH MICROCHIPS AND SOFTWARE WHERE DEVELOPMENTS HAVE ALLOWED THE MINIATURIZATION OF CELLULAR PHONES DRIVING DOWN PRICES AND DRIVING UP PERFORMANCE MOTOROLA INC SCHAUMBURG ILL FOR INSTANCE WAS ABLE TO PUT HUNDREDS OF RADIO PARTS ON A 2INCHBY3INCH CIRCUIT BOARD IN 1986 A FEAT THAT ALLOWED IT TO INTRODUCE A HANDHELD CELLULAR PHONE FOR ABOUT 2500 NOW WITH MICROPROCESSING POWER DOUBLING EVERY 18 TO 24 MONTHS A LIGHTER SMALLER MOREPOWERFUL PHONE IS AVAILABLE AT ONETENTH THE COST OF THE 1986 MODEL ANOTHER BREAKTHROUGH JUST NOW TAKING HOLD USING THE LATEST MICROPROCESSORS TO MOVE CELLULAR TECHNOLOGY FROM ANALOG WHICH CONVERTS SPEECH TO SOUND WAVES TO DIGITAL WHICH CONVERTS NOT ONLY SPEECH BUT ALSO TEXT GRAPHICS AND VIDEO TO A STREAM OF ONES AND ZEROS DIGITAL INFORMATION UNLIKE SOUND WAVES CAN BE COMPRESSED OR TRANSMITTED IN BURSTS OF PACKETS GREATLY SPEEDING UP TRAFFIC IT'S ALSO FREE FROM STATIC INTERFERENCE AND TRANSMISSION ERROR THAT CURRENTLY MAKE USING A WIRELESS ANALOG MODEM DIFFICULT RIGHT NOW THE TWO DATAONLY NATIONAL DIGITAL NETWORKS ARDIS AND RAM MOBILE DATA ARE CRUDE PREDECESSORS THE TELEX MACHINES OF THEIR ERA BUT THIS YEAR MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH AMONG OTHERS WILL BE LAYING A MORE ADVANCED DIGITAL SYSTEM OF COMPUTERS AND SIGNAL PROCESSORS ON TOP OF ITS EXISTING ANALOG CELLULAR SYSTEM IN TWO TO THREE YEARS THAT WILL ALLOW USERS NATIONWIDE TO SEND BOTH THEIR VOICE AND THEIR DATA FROM A SINGLE WIRELESS DEVICE MOREOVER COMPANIES WILL START NEXT YEAR TO BUILD A NEW KIND OF MICROCELLULAR DIGITAL NETWORKS CALLED PERSONAL COMMUNICATIONS SERVICES OR PCS WHICH USE LOWPOWER HIGHFREQUENCY RADIO WAVES CURRENT CELLULAR TRANSMISSIONS MOVE FROM CELL TO CELL GEOGRAPHIC UNITS EACH OF WHICH IS EQUIPPED WITH A HIGHPOWERED TRANSMITTER MICROCELLS WILL BE MUCH SMALLER ALLOWING THE PHONES TO USE LESS POWER AND SMALLER BATTERIES REDUCING THE SIZE AND COSTS LOW POWER ALSO MEANS THE ABILITY TO USE THE ENTIRE FREQUENCY ALL OVER AGAIN IN EACH MICROCELLTRANSMISSION AREA CURRENT CELLULAR OPERATORS MUST AVOID USING PARTS OF THEIR ALLOTTED FREQUENCY TO PREVENT RADIO INTERFERENCE WITH CALLS IN ADJOINING CELLS SOME PEOPLE THINK PCS NETWORKS WILL BE UP TO 20 TIMES AS EFFICIENT AS EXISTING ANALOG CELLULAR SYSTEMS AND PROVIDE VASTLY BETTER SERVICES AND QUALITY BUT THE WIRELESS WORLD IS GOING TO BE WIDER AND DEEPER THAN REGIONAL DIGITAL NETWORKS A MOTOROLABACKED VENTURE IRIDIUM INC OF WASHINGTON IS RACING A HALFDOZEN OTHER COMPANIES TO PUT UP A WORLDWIDE WIRELESS SATELLITE SYSTEM BY 1998 IRIDIUM'S SYSTEM WOULD BEAM VOICE DATA FAX OR PHYSICAL LOCATION FROM A SMALL HANDHELD SET ANYWHERE IN THE WORLD TO ANY OTHER PLACE AT THE OPPOSITE EXTREME COMPANIES SUCH AS METRICOM CORP LOS GATOS CALIF HAVE DEVELOPED TRANSMITTERS AS SMALL AS BRICKS THAT CAN BE HUNG FROM UTILITY POLES CREATING WIRELESS NETWORKS INSIDE BUILDINGS ON CAMPUSES OR IN DOWNTOWN AREAS ANOTHER COMPANY IS TESTING WIRELESS CLIPBOARDS FOR NURSES YET ANOTHER IS TESTING DATAENTRY DEVICES FOR STORE CLERKS THE DEVICES THAT WILL LINK PEOPLE TO THE NETWORKS ARE ALSO IN A PRIMITIVE STATE RIGHT NOW PEOPLE ARE JURYRIGGING PALMTOP COMPUTERS TO BULKY EXTERNAL WIRELESS MODEMS OR GROPING FOR HOURS TO GET DATA INTO THEIR NEW HANDHELD COMMUNICATORS KNOWN AS PERSONAL DIGITAL ASSISTANTS THEN HOOKING THEM UP TO SPECIAL GEAR TO SEND DATA EVEN OVER A TELEPHONE LINE BUT THIS YEAR MOTOROLA AND OTHERS WILL INTRODUCE CREDITCARDSIZE WIRELESS MODEMS THAT SLIP INTO HANDHELD COMMUNICATORS AND PORTABLE COMPUTERS MOTOROLA WILL ALSO INTRODUCE AN IMPROVED PERSONAL COMMUNICATOR THIS SUMMER THAT WILL BE FAIRLY ADEPT AT WIRELESSLY SENDING TEXT GRAPHICS AND MAYBE EVEN VOICE PROVIDED A WIRELESS NETWORK EXISTS IN YOUR NEIGHBORHOOD IN TWO TO FOUR YEARS ANOTHER FEAT OF INTEGRATION WILL OCCUR AS THE FUNCTIONS AND CAPABILITIES OF CELLULAR PHONES PAGERS FASTER MICROPROCESSORS COLOR SCREENS AND MORE POWERFUL BATTERIES ARE BLENDED TOGETHER IN HANDHELD DEVICES COSTING 400 TO 500 THINGS LIKE CELLULAR PHONES AND PAGERS WILL EXIST ON SINGLE MICROCHIPS MAKING THEM EXTRAORDINARILY CHEAP AND CAPABLE OF BEING BUILT INTO A SINGLE DEVICE THAT DOES IT ALL SO MUCH FOR THE TECHNOLOGY NOW THE HARD PART WHY WOULD CONSUMERS WANT THIS SOME SKEPTICS IN FACT QUESTION WHETHER THEY WILL WE GET SO CAUGHT UP IN OUR TECHNOLOGICAL UNDERWEAR THAT WE DON'T RECOGNIZE THAT THE REST OF THE COUNTRY CAN'T RUN ITS VCRS YET SAYS DON VALENTINE A VENTURE CAPITALIST AT SEQUOIA CAPITAL MENLO PARK CALIF THERE'S A LOT OF BIGCOMPANY HYPE GOING ON NOT UNLIKE THE INTERACTIVETV BUSINESS THE KEY ISSUE IS WHAT IS ANY OF THIS GOING TO DO THAT THE USER CAN'T DO NOW FOR WHICH HE IS GOING TO PAY A GREAT DEAL OF MONEY A MEASURE OF SKEPTICISM MAY BE JUSTIFIED BUT CONSIDER THIS MANY OF THE DOUBTERS ARE THE SAME PEOPLE WHO ASKED A FEW YEARS AGO WHY ANYONE WOULD WANT A PHONE IN HIS OR HER POCKET WHEN THERE WERE SO MANY TELEPHONE BOOTHS AROUND EVIDENCE ABOUNDS THAT PEOPLE DO WANT MOBILITY AND INSTANT ACCESS TO MESSAGES AND DATA LOOK NOT JUST AT THE EXPLOSION OF CELLULAR PHONES AND PAGERS BUT AT THE GROWTH OF PORTABLE COMPUTERS ELECTRONICMAIL USERS AND INTERNET SUBSCRIBERS THEY WANT INFORMATION NOW ALL KINDS OF IT AND THEY WILL WANT IT A LOT MORE WHEN NEW SOFTWARE DEVICES AND NETWORKS INEVITABLY COMBINE TO CREATE VALUABLE SERVICES AND FUNCTIONS THAT DON'T EXIST TODAY LAST MONTH A CONSORTIUM CALLED GENERAL MAGIC INC BEGAN SHIPPING SOFTWARE THAT ALLOWS USERS OF WIRELESS HANDHELD DEVICES TO CREATE ELECTRONIC AGENTS THAT WILL GO OUT ON THE WIRELESS NETWORK TO DO ALL KINDS OF TIMECONSUMING CHORES ON YOUR BEHALF NEXT YEAR FOR INSTANCE YOU WILL BE ABLE TO POST A PERSONALITY AGENT ON MEAD DATA CENTRAL INC'S COMPENDIOUS NEXIS TEXTRETRIEVAL SYSTEM THAT WILL SEND YOU ARTICLES IT KNOWS YOU ARE INTERESTED IN AMERICAN TELEPHONE & TELEGRAPH CO WILL LAUNCH AN INTELLIGENT NETWORK CALLED PERSONALINK THIS SUMMER THAT WILL FILTER YOUR MESSAGES MAKING SURE YOU GET IMPORTANT ONES WHILE ELECTRONIC JUNK MAIL GOES IN THE TRASH IN FACT THE NETWORK WILL LET YOU SEND OUT ELECTRONIC REQUESTS FOR PROPOSALS THAT TURN THE CONCEPT OF JUNK MAIL ON ITS HEAD YOUR RFP COULD FOR EXAMPLE ASK THE ELECTRONIC AGENTS OF SERVICE PROVIDERS ON PERSONALINK TO RETURN BIDS FOR A TWOWEEK MAY VACATION IN HAWAII TO YOUR PERSONALINK MAILBOX MOST MARKET RESEARCHERS AND MOST PEOPLE IN GENERAL HAVEN'T SPENT A LOT OF TIME THINKING ABOUT ALL THE OTHER POSSIBILITIES OF POWERFUL NETWORKS AND POWERFUL DEVICES BUT THE USES ARE LIMITLESS TO CITE A COUPLE OF EXAMPLES QUALCOMM CORP OF SAN DIEGO TRACKS 40000 TRUCKS VIA SATELLITE CONSTANTLY MONITORING THEIR LOCATIONS AND EVEN ENGINE CONDITIONS AND CINCINNATI MICROWAVE INC CINCINNATI HAS DEVELOPED A WIRELESS SYSTEM FOR VENDING MACHINES TO TALK TO A COMPUTER AT HEADQUARTERS ORDERING MORE GOODS OR REPORTING VANDALISM MOTOROLA IN FACT SAYS ANYTHING THAT HAS A SWITCH INCLUDING CAR ENGINES CAN BE TURNED ON OR OFF BY A WIRELESS NETWORK AND IT PLANS TO TRY TO SELL THE IDEA TO THE MASSES WOULD PEOPLE BUY A WIRELESS DEVICE IF IT PREVENTED THE THEFT OF THEIR TAURUS AT THE SAME TIME THE WIRELESS WORLD IS GOING TO BE A HOSTILE ENVIRONMENT FOR THOSE COMPANIES THAT CAN'T ADAPT TO IT ARDIS AND RAM THE WIRELESSNETWORK PIONEERS MAY BE IN FOR A TOUGH TIME BECAUSE THEY TRANSMIT ONLY DATA AND ARE SLOW WHILE NEW DIGITAL CELLULAR TECHNOLOGY WILL CARRY VOICE AND DATA AND BE MUCH FASTER THE TELEPHONE AND CELLULAR COMPANIES HAVE INVESTED MANY BILLIONS OF DOLLARS IN OUTMODED TECHNOLOGY BUT MUST INVEST BILLIONS MORE TO CONVERT TO DIGITAL TRANSMISSION OR TO TAKE OVER THE PCS NETWORKS SIMILARLY RETAILERS AND DISTRIBUTORS HAVE INVESTED BILLIONS IN BRICK AND MORTAR AND SERVICES THAT MAY BE OUTMODED WHEN VIRTUAL STORES CAN BE SHOPPED ON A WIRELESS DEVICE WHAT NEED IS THERE FOR A FILMDISTRIBUTION COMPANY WHEN AL PACINO CAN RENT SPACE ON A SATELLITE NETWORK TO BEAM HIS NEW MOVIE TO 3000 THEATERS THESE COMPANIES ARE GOING TO HAVE TO ATTACK THEIR OWN DATED DELIVERY SYSTEMS OR SOMEBODY ELSE WILL GEORGE GILDER AUTHOR OF A BOOK DUE OUT SOON ON EMERGING WIRED AND WIRELESS NETWORKS SAYS THE HOUR OF THE CANNIBAL IS AT HAND IT'S TOO SOON TO KNOW WHO THE WINNERS AND LOSERS WILL BE AS MR BRODSKY OF DATACOMM POINTS OUT IT WILL TAKE A WHILE MAYBE HALF A DECADE FOR WIRELESS PURVEYORS TO GET ALL THE DUCKS IN A ROW THE INDUSTRY'S BIGGEST OBSTACLE IS A LACK OF SOFTWARE NEEDED TO SIMPLIFY THE USE OF INCOMPATIBLE NETWORKS AND TO PROVIDE COMPELLING WIRELESS APPLICATIONS PROGRAMS BUT EVENTUALLY THE DEVICES AND NETWORKS WILL BE UBIQUITOUS AND THE BIGGEST ULTIMATE EFFECT MAY BE TO ODDLY INCREASE THE PACE OF SOCIETY BY LIBERATING PEOPLE FROM THE PHYSICAL CONSTRAINTS OF TIME AND SPACE MUCH OF THE WORK AND COMMUNICATING WE NOW DO WILL BE DONE BY WIRELESS SERVANTS AND ALTER EGOS WHILE WE ARE DOING SOMETHING ELSE SOMEWHERE ELSE THIS IS A REVOLUTION SAYS MR BRODSKY THAT A LOT OF PEOPLE DON'T SEE MR HILL CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU SERVED AS CONTRIBUTING EDITOR OF THIS REPORT QUALCOMM INC'S VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER ANDREW VITERBI ESTIMATED THAT QUALCOMM'S CDMA TECHNOLOGY OFFERS A SEVENFOLD IMPROVEMENT IN WIRELESS TRANSMISSION CAPACITY OVER A RIVAL DIGITAL CELLULAR TECHNOLOGY CALLED TDMA NOT OVER EXISTING CELLULAR SYSTEMS AS REPORTED IN FRIDAY'S SPECIAL REPORT ON TELECOMMUNICATIONS 9402110105 940211 INTERNATIONAL SALES OF JAPANESE AUTOS IN EUROPE JUMP 135 BRUSSELS SALES OF JAPANESE CARS IN WESTERN EUROPE SURGED 135 LAST MONTH OUTPERFORMING MOST EUROPEAN AND US BRANDS JAPANESE BRANDS ACCOUNTED FOR 116 OF NEWCAR REGISTRATIONS IN WESTERN EUROPE UP FROM 109 IN JANUARY 1993 NISSAN MOTOR CO AND HONDA MOTOR CO WERE THE TOP PERFORMERS WITH SALES GAINS OF 31 AND 26 RESPECTIVELY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID THE FIGURES CONFIRM EUROPEAN PRODUCERS' FEARS THAT THEIR JAPANESE RIVALS AS THEY MAKE INROADS ARE LIKELY TO BE THE MAIN BENEFICIARIES OF A RECOVERY IN THE AUTO MARKET LAGGING BEHIND THE JAPANESE WERE TWO OF EUROPE'S LARGEST CAR MAKERS VOLKSWAGEN AG AND FIAT SPA VW'S MARKET SHARE DROPPED TO 155 FROM 166 AS ITS SALES SLIPPED 04 TO 160460 UNITS FIAT'S MARKET SHARE FELL TO 121 FROM 132 WHILE SALES DROPPED 17 BUT DAIMLERBENZ AG'S SALES JUMPED 54 AND ROVER GROUP HOLDINGS PLC'S SALES INCREASED 22 9402110104 940211 BUSINESS BRIEF L'OREAL SA FRENCH COSMETICS FIRM SAYS 1993 REVENUE INCREASED 69 FRENCH COSMETICS GIANT L'OREAL SA SAID IN PARIS THAT ITS CONSOLIDATED REVENUE ROSE 69 TO 4016 BILLION FRANCS 673 BILLION IN 1993 THE GROUP ALSO SAID THAT ALTHOUGH LAST YEAR'S PROFIT HASN'T YET BEEN DETERMINED IT EXPECTS GROUP PROFIT TO HAVE GROWN SIGNIFICANTLY MORE THAN THE 69 GAIN IN REVENUE IN 1992 L'OREAL POSTED GROUP NET INCOME OF 219 BILLION FRANCS ON A COMPARABLE STRUCTURE AND CONSTANT EXCHANGERATE BASIS L'OREAL SAID CONSOLIDATED REVENUE GREW 7 IT NOTED THAT CONSOLIDATED SALES FROM COSMETICS ROSE 73 WHILE SALES FROM ITS SYNTHELABO UNIT INCREASED 68 BOTH ON A COMPARABLE BASIS 9402110103 940211 BUSINESS BRIEF FIRSTAR CORP COMPANY AGREES TO ACQUIRE FIRST SOUTHEAST IN STOCK DEAL FIRSTAR CORP SAID IT DEFINITIVELY AGREED TO ACQUIRE CLOSELY HELD FIRST SOUTHEAST BANKING CORP FOR STOCK CURRENTLY VALUED AT 547 MILLION MILWAUKEEBASED FIRSTAR WILL ISSUE JUST OVER 18 MILLION COMMON SHARES OF ITS STOCK TO EFFECT THE ACQUISITION OF THE LAKE GENEVA WIS BANK HOLDING COMPANY THE ACQUISITION OF FIRST SOUTHEAST WHICH HAS ASSETS OF 423 MILLION PROVIDES FIRSTAR WITH SIGNIFICANT PRESENCE IN THE RACINE KENOSHA AND WALWORTH COUNTY MARKETS OF WISCONSIN FIRSTAR OFFICIALS SAID FIRSTAR HAS ASSETS OF 138 BILLION COMPLETION OF THE TRANSACTION IS EXPECTED THIS SUMMER FOLLOWING REGULATORY APPROVAL FIRSTAR SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FIRSTAR SHARES CLOSED DOWN 375 CENTS AT 30375 9402110102 940211 SEC FOCUSES ON FUND MANAGERS' TRADING BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION SPURRED BY CONCERNS ABOUT POSSIBLE SELFDEALING BY MUTUALFUND MANAGERS IS ASKING 30 FUND GROUPS FOR DETAILED INFORMATION ON PERSONAL TRADING BY THEIR PORTFOLIO MANAGERS THE SEC'S SWEEPING REQUEST FOR TRADING DATA HAS BEEN SENT TO FUND GROUPS OVER THE COURSE OF THE LAST FEW DAYS SAID BARRY BARBASH DIRECTOR OF THE INVESTMENTMANAGEMENT DIVISION OF THE SEC WHICH OVERSEES MUTUAL FUNDS THE INQUIRY WILL TRY TO DETERMINE WHETHER EXISTING SEC RULES WHICH REQUIRE FUND GROUPS TO POLICE PERSONAL TRADING BY MANAGERS ARE ADEQUATE IF WE FOUND SOME WIDESPREAD ISSUES OF POSSIBLE ABUSE WE WOULD CONSIDER RULE MAKING OR IF NEED BE LEGISLATION TO DEAL WITH SUCH PROBLEMS MR BARBASH SAID WHILE HE CALLED THE LATEST ACTION A KICKING OF THE TIRES OF OUR PROCEDURES AS THEY EXIST NOW HE DIDN'T RULE OUT AN EVENTUAL BAN ON PERSONAL TRADING BY FUND MANAGERS HOWEVER HE STRESSED THAT SUCH A JUDGMENT WOULD BE PREMATURE NOW MUTUALFUND MANAGERS ARE ALLOWED TO TRADE FOR THEIR OWN ACCOUNT BUT THEY MUST REPORT THOSE TRADES TO THEIR EMPLOYERS MOREOVER THEY MUST NOT USE INSIDE INFORMATION IN TRADING OR PROFIT AT THE EXPENSE OF THEIR FUNDS' SHAREHOLDERS THESE PRACTICES AND THEIR POTENTIAL ABUSE BY MUTUALFUND INSIDERS CAME UNDER PUBLIC SCRUTINY LAST MONTH AFTER THE INVESCO FUNDS GROUP FIRED JOHN KAWESKE A STAR PORTFOLIO MANAGER FOR ALLEGEDLY FAILING TO REPORT SOME 10 TO 20 PERSONAL TRADES TO START WITH THE SEC'S EXAMINATION WILL TRY TO DETERMINE WHETHER MUTUALFUND GROUPS ARE ADEQUATELY ENFORCING THE CODES OF ETHICS THAT THEY CURRENTLY ARE MANDATED TO HAVE FOR INSTANCE THE INQUIRY ASKS WHAT VIOLATIONS IN THE FUNDS' CODES OF ETHICS OCCURRED IN 1993 AND WHAT THE FUND GROUPS DID IN RESPONSE BUT THE INQUIRY ALSO MIGHT GO FURTHER BY CHECKING FOR POSSIBLE VIOLATIONS OF INSIDERTRADING LAWS BY MUTUALFUND MANAGERS THE LETTER TO FUND GROUPS WAS SIGNED NOT ONLY BY MR BARBASH BUT ALSO BY WILLIAM R MCLUCAS DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION THE SEC WOULDN'T REVEAL WHICH FUND GROUPS ARE RECEIVING THE LETTER MR BARBASH SAID THE 30 FUND GROUPS CONTACTED WEREN'T NECESSARILY THE LARGEST NOR IS THE EXAMINATION AIMED AT FUND GROUPS WHOSE MANAGERS ARE SUSPECTED OF WRONGDOING HE ADDED THE INQUIRY IS BEING SENT TO MANY DIFFERENT TYPES OF FUND GROUPS INCLUDING NEW SMALL GROUPS AS WELL AS ESTABLISHED ONES GROUPS WHOSE FUNDS ARE SOLD DIRECTLY TO INVESTORS AND GROUPS WHOSE FUNDS ARE SOLD THROUGH SALESPEOPLE THE INQUIRY IS DIRECTED AT FUND GROUPS THAT HAVEN'T RECENTLY HAD GENERAL INSPECTIONS BY THE SEC MR BARBASH SAID THE SEC USUALLY SCRUTINIZES PERSONAL TRADING BY FUND EMPLOYEES IN ITS PERIODIC EXAMINATION OF FUND GROUPS BUT FOR SEVERAL YEARS THOSE EXAMINATIONS FOCUSED MORE ON MONEYMARKET FUNDS WHICH ARE LESS APT TO BE INVOLVED IN INSIDERTRADING VIOLATIONS I BELIEVE YOU WILL HEAR CRIES OF ANGUISH FROM THE FUND INDUSTRY THAT WE'RE BEING VERY INTRUSIVE THAT WE'RE RESPONDING TO NO GREAT SHOWING OF A PROBLEM MR BARBASH SAID GIVEN THE FIDUCIARY NATURE OF THE FUND MANAGERS' JOB WE THOUGHT IT WAS APPROPRIATE TO GO OUT AND GET A PRETTY GOOD PICTURE OF WHAT'S GOING ON MEANWHILE REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE IN A STATEMENT EXPRESSED CONCERN THAT MUTUAL FUNDS ADVISED BY BANKS ARE EXEMPT FROM CRUCIAL PROVISIONS IN THE SECURITIES LAWS DESIGNED TO LIMIT CONFLICTS OF INTEREST MR MARKEY HELPED SPARK THE SEC INQUIRY IN A JAN 11 LETTER HE ADDRESSED TO SEC CHAIRMAN ARTHUR LEVITT JR ASKING HIM TO REVIEW PERSONALTRADING PRACTICES OF MUTUALFUND MANAGERS AND REGULATIONS GOVERNING THEM MR LEVITT'S REPLY TO MR MARKEY INCLUDED A COPY OF THE REQUEST FOR PERSONALTRADING INFORMATION SENT TO THE 30 FUND GROUPS A SENIOR AIDE TO MR MARKEY SAID IT APPEARED THAT SOME PEOPLE AT THE SEC HAVE SERIOUS DISCOMFORT WITH THE EXISTING APPROACHES AND POLICIES TO THE CONFLICTOFINTEREST QUESTION MOREOVER THE AIDE BELIEVES THE COMMISSION HAS A GENUINE INTENT TO EXAMINE THE ISSUE THOROUGHLY AND TO STRENGTHEN THE EXISTING RULES SUBSTANTIALLY IF NEEDED ROY ADAMS A LAWYER AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO SAID THIS WHOLE AREA HAS RECEIVED SO MUCH ATTENTION I THINK THE SEC WOULD BE REMISS IF IT DIDN'T FOLLOW UP ON ALL THE PRESS REPORTS THE EXAMINATION INDICATES THE AGENCY IS GETTING READY FOR THE INEVITABLE CONGRESSIONAL INQUIRY HE ADDED THE INVESTMENT COMPANY INSTITUTE THE NATIONAL MUTUALFUND TRADE ASSOCIATION ALSO IS EXAMINING THE CODEOFCONDUCT POLICIES OF MUTUALFUND COMPANIES AND THE TRADING PRACTICES OF FUND MANAGERS THE ICI SAID IT IS PLEASED THAT THE SEC IS SEEKING FURTHER INFORMATION REGARDING PERSONALTRADING PRACTICES OF MUTUALFUND PERSONNEL 9402110101 940211 BUSINESS BRIEF AMERICA WEST ASKS BANKRUPTCY COURT TO BLOCK SALE OR TRANSFER OF SECURITIES AMERICA WEST AIRLINES MADE THE UNUSUAL MOVE OF ASKING THE US BANKRUPTCY COURT IN PHOENIX TO PROHIBIT THE SALE OR TRANSFER OF ITS SECURITIES THE CARRIER WHICH HAS BEEN OPERATING IN CHAPTER 11 FOR ALMOST THREE YEARS SAID IT FILED THE MOTION TO PRESERVE THE COMPANY'S TAX BENEFITS THE MOVE DREW FIRE FROM AMERICA WEST'S EQUITY COMMITTEE WHICH SAID THE ACTION WOULD HURT THE VALUE OF THE PHOENIXBASED AIRLINE'S COMMON SHARES BOND ANALYSTS SAID THE COMPANY'S MOTION WAS DESIGNED TO PREVENT AN UNFRIENDLY INVESTOR TAKING CONTROL BY BUYING ITS DEBT SECURITIES AS FEDERATED DEPARTMENT STORES INC HAS SOUGHT WITH RH MACY & CO IT'S AN ANTITAKEOVER DEFENSE SAID PHIL BRANNON A HIGHYIELD BOND ANALYST AT MABON SECURITIES CORP AMERICA WEST HAS BEEN IN DISCUSSIONS WITH SEVERAL POSSIBLE INVESTORS INCLUDING NEW YORK MONEY MANAGER MICHAEL STEINHARDT BUT NO CLEAR LEADER HAS EMERGED AMERICA WEST SAID IT FILED THE COURT MOTION AFFECTING THE CARRIER'S GENERAL UNSECURED CLAIMS DEBENTURES AND STOCK TO PROTECT THE AIRLINE'S NET OPERATING LOSS AND TAXCREDIT CARRYFORWARDS THESE TAX ASSETS CAN BE LOST WHEN AN INVESTOR ACQUIRES AND REORGANIZES A COMPANY IN BANKRUPTCY COURT AMERICA WEST ESTIMATED THE ASSETS AT 400 MILLION AFTER REORGANIZATION TAX EXPERTS SAID AMERICA WEST'S REQUEST WAS UNUSUAL BUT NOT UNPRECEDENTED AND THAT SOME BANKRUPTCY JUDGES HAVE GRANTED SIMILAR REQUESTS BUT BENJAMIN WAISBRAN AN ATTORNEY REPRESENTING AMERICA WEST'S EQUITY HOLDERS SAID THE MOVE IF APPROVED WOULD PREVENT THE STOCK FROM REALIZING ITS FULL VALUE AMERICA WEST DID THIS WITHOUT REGARD TO ITS PRIMARY CONSTITUENCY THE SHAREHOLDERS MR WAISBRAN SAID BEFORE TRADING WAS HALTED YESTERDAY AMERICA WEST STOCK TRADED AT 196875 DOWN 40625 CENTS OR 171 ON THE NASDAQ STOCK MARKET 9402110100 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BOTTOM LINE FASTEN YOUR SEAT BELTS WIRELESS STOCKS CAN GIVE YOU SOME OF THE MOST EXPLOSIVE RETURNS AROUND BUT THEY AREN'T FOR THE TIMID BY WARREN GETLER LOTS OF PROMISE LOTS OF HYPE AND LOTS OF VOLATILITY THAT ABOUT SUMS UP THE WIRELESS INVESTING SCENE THE SECTOR SENT ALOFT ON A WAVE OF MERGER ACTIVITY TOUCHED OFF BY AMERICAN TELEPHONE & TELEGRAPH CO'S PROPOSED TAKEOVER OF MCCAW CELLULAR COMMUNICATIONS INC WAS AMONG THE MOST EXPLOSIVE STOCK GROUPS LAST YEAR AND IT PROMISES TO BE A HOT TICKET THIS YEAR AND BEYOND BUT ANALYSTS WARN THAT MUCH OF THE RECENT BIG PRICE JUMP REFLECTS MERELY SPECULATIVE BETS ON COMPANIES THAT WON'T BE PROFITABLE FOR SEVERAL YEARS IF EVER THESE COMPANIES AFTER ALL ARE INVESTING HUGE SUMS OF MONEY TO DEVELOP PRODUCTS THAT ARE STILL UNPROVED BASED ON TECHNOLOGY THAT COULD QUICKLY BECOME OUTDATED AND THE MARKETS ARE TEEMING WITH COMPETITORS YOU DON'T KNOW WHAT NEW TECHNOLOGY IS COMING DOWN THE ROAD AND THERE'S ALSO THE ISSUE ABOUT HOW MUCH DEMAND THERE'S GOING TO BE FOR THE FINAL PRODUCT SAYS HERSCHEL SHOSTECK AN INDEPENDENT ANALYST BASED IN SILVER SPRING MD HE ADDS MOST OF THE STOCKS ARE GOING UP ON SPECULATIVE FRENZY NOT ON ANY FUNDAMENTALS OR A SHORTTERM CHANCE OF FUNDAMENTALS SO WHAT DO ANALYSTS RECOMMEND MR SHOSTECK FOR ONE IS FOCUSING ON BIG MULTINATIONAL TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES WHILE STEERING CLEAR OF SUCH PURE WIRELESS PLAYS AS CENCALL COMMUNICATIONS CORP OF DENVER DIAL PAGE GEOTEK INDUSTRIES INC OF MONTVALE NJ NEXTEL COMMUNICATIONS INC OF RUTHERFORD NJ THE RISK INVOLVED IS GENERALLY UNRECOGNIZED WHEN IT COMES TO WIRELESS STOCKS MR SHOSTECK SAYS THE PEOPLE WHO RECOGNIZE THIS ARE THE MOTOROLAS FOR EXAMPLE THEY WANT TO SPREAD THE RISK AND THAT'S WHY THEY'RE SUCCESSFUL NO MATTER WHAT HIT THEY TAKE THEY'RE ONLY GOING TO TAKE PART OF THE HIT AND THE SUCCESS WHEN IT COMES WILL BE SHARED WITH OTHER COMPANIES MOTOROLA INC A SCHAUMBURG ILL LEADER IN THE MANUFACTURE OF HANDHELD CELLULAR PHONES HAS ITS FINGERS IN EVERY ASPECT OF THE WIRELESS PIE AS A PROVIDER OF BOTH TECHNOLOGY AND EQUIPMENT OTHER ANALYSTS ARE BULLISH ON BIG CELLULAR PROVIDERS OUTSIDE THE US PARTICULARLY SINCE MCCAW PENDING COMPLETION OF THE AT&T MERGER WILL HAVE BEEN REMOVED AS AN INDEPENDENT US PLAYER VODAFONE GROUP PLC THE DOMINANT CELLULAR PROVIDER IN THE UK WHOSE STOCK TRADES IN THE US AS AN AMERICAN DEPOSITARY RECEIPT IS THE TOP CELLULAR PICK AMONG ANALYSTS AT PAINEWEBBER INC GOLDMAN SACHS & CO AND COWEN & CO JEFF HINES PAINEWEBBER'S SENIOR WIRELESS ANALYST IN NEW YORK SAYS VODAFONE COULD BECOME A 115 TO 125 STOCK OVER THE NEXT TWO YEARS UP FROM ITS CURRENT LEVEL OF ABOUT 90 HE NOTES THAT DESPITE THE EMERGENCE OF NEW PLAYERS IN THE COMPETITIVE UK MARKET VODAFONE HAS BEEN ABLE TO EXPAND ITS SUBSCRIPTION BASE RAPIDLY FOR INSTANCE IT ADDED 53000 NET NEW SUBSCRIBERS IN DECEMBER A MONTHLY RECORD FOR THE COMPANY AND MORE THAN FOUR TIMES THE INCREASE IN DECEMBER 1992 MR HINES SAYS VODAFONE IS ALSO WELL POSITIONED TO COMPETE IN IMPORTANT FOREIGN MARKETS SUCH AS GERMANY SWEDEN AUSTRALIA AND HONG KONG WHERE IT PARTICIPATES THROUGH EQUITY HOLDINGS IN DOMESTIC LICENSES BEYOND THE ADVANTAGE OF HAVING A DOMINANT PRESENCE IN ITS HOME MARKET VODAFONE IS TRADING AT ATTRACTIVE MULTIPLES ON FUTURE EARNINGS HE SAYS ADDING THEY ALSO HAVE NO LONGTERM DEBT AND THEY'VE BEEN PAYING DIVIDENDS BARRY KAPLAN A MEDIA AND WIRELESSCOMMUNICATIONS ANALYST AT GOLDMAN SACHS IN NEW YORK ALSO SEES A LOT MORE STEAM IN THE STOCK THE SHARES HE NOTES TRADE AT ONE OF THE LOWEST PRICETOCASHFLOW MULTIPLES IN THE INDUSTRY AROUND 105 TIMES THE 700 MILLION HE SEES FOR THE FISCAL YEAR ENDING MARCH 1995 US CELLULAR COMPANIES BY COMPARISON TRADE ON AVERAGE AT 15 TO 20 TIMES PROJECTED CASH FLOWS ANOTHER FAVORITE STOCK AT PAINEWEBBER AND GOLDMAN SACHS IS ROGERS CANTEL MOBILE COMMUNICATIONS THE DOMINANT CELLULAR PROVIDER IN CANADA THEY'RE THE MCCAW OF CANADA WITH A NATIONWIDE LICENSE SAYS MR HINES OF PAINEWEBBER HE SAYS THAT THE COMPANY'S MARGINS HAVE BEEN IMPROVING AND THAT HE EXPECTS TO SEE THE STOCK TRADE AS HIGH AS 40 TO 45 IN TWO YEARS FROM ITS CURRENT LEVEL OF ABOUT 27 ON NASDAQ THE COMPANY IS A UNIT OF ROGERS COMMUNICATIONS CANADA'S LARGEST CABLE OPERATOR MR KAPLAN THE GOLDMAN ANALYST SAYS CANTEL'S NATIONWIDE REACH IS A BIG PLUS IN CELLULAR OPERATING ON A NATIONWIDE LICENSE IS BETTER THAN A REGIONAL LICENSE HE SAYS THAT'S BECAUSE A NATIONWIDE NETWORK CREATES ECONOMIES OF SCALE AND MAKES IT A LOT EASIER TO COORDINATE DELIVERY OF CALLS OVER ONE SEAMLESS WEB HE SAYS MR KAPLAN ALSO LIKES THE RECENT INITIAL PUBLIC OFFERING PACTEL CORP A WIRELESSCOMMUNICATIONS SPINOFF OF PACIFIC TELESIS GROUP THAT WAS PRICED AT 23 IN DECEMBER AND HAS BEEN TRADING SLIGHTLY ABOVE THAT LEVEL IT HAS GREAT DOMESTIC MARKETS HE SAYS AND OUTSTANDING OPPORTUNITIES OVERSEAS ESPECIALLY IN GERMANY JAPAN AND PORTUGAL FOR NOW MESSRS KAPLAN AND HINES ARE A BIT LESS ENAMORED OF THE HIGHFLYING SHARES OF PLAYERS IN A HOT FIELD SPECIALIZED MOBILE RADIO THIS TECHNOLOGY PROMISES TO TRANSFORM LIMITED TWOWAY RADIO COMMUNICATION INTO A NETWORK THAT WOULD PROVIDE FOR TELEPHONE DATA TRANSMISSION AND PAGING CAPABILITIES THE PROBLEM MESSRS KAPLAN AND HINES SAY IS NOT THAT THE TECHNOLOGY MAY FAIL OR PROVE A FINANCIAL ROUT IT'S JUST THAT THEY VIEW THE STOCKS AS RICHLY PRICED WITH MOST HAVING DOUBLED IN PRICE LAST YEAR THEY LIKE TO RATE THESE STOCKS AS MARKET OUTPERFORMERS THIS APPLIES IN PARTICULAR TO THREE KEY MOBILERADIO COMPANIES NEXTEL DIAL PAGE AND CENCALL COLLECTIVELY THESE COMPANIES HAVE BET BILLIONS OF DOLLARS THAT THEY CAN TRANSFORM HUMDRUM RADIO DISPATCH SERVICES INTO A WIRELESS PHONE NETWORK AND ALL BEFORE THE CELLULAR COMPANIES ADD CAPACITY TO THEIR NETWORKS BY MOVING TO AN INTEGRATED DIGITAL SYSTEM STILL MR KAPLAN SAYS HE IS BECOMING A BIT MORE BULLISH ON THE MOBILERADIO SECTOR I'VE BEEN WRESTING WITH VALUATIONS HE SAYS THE STOCKS HAVE COME DOWN A BIT RECENTLY AND GOTTEN INTRIGUING BUT HE'S RELUCTANT TO SUGGEST ANY BUYS FROM THE GROUP FOR NOW HE SAYS SIMILARLY MR HINES IS WARMING UP TO ONE MOBILERADIO STOCK NEXTEL ALTHOUGH HE TOO IS NOT YET RATING IT A STRONG BUY CALLING IT A MORE SPECULATIVE ATTRACTIVE MARKET OUTPERFORMER HIS CHANGE OF HEART HE SAYS STEMS FROM NEXTEL'S RECENT ACQUISITION OF MOTOROLA'S RADIO DISPATCH PROPERTIES MORE THAN 2500 RADIO FREQUENCIES IN 21 STATES FOR ABOUT 18 BILLION THEY NOW HAVE LICENSES THAT GIVE THEM ACCESS TO 180 MILLION PEOPLE IN THE US MR HINES SAYS THEY ARE NOW IN THE TOP 10 REGIONAL MARKETS HE IS ALSO ENCOURAGED BY THE FACT THAT THE AGREEMENT PROVIDED FOR MOTOROLA TO ACQUIRE A MINORITY 20 STAKE IN NEXTEL WHAT'S MORE HE POINTS OUT THE COMPANY JUST GOT A BIG BOOST FROM NIPPON TELEGRAPH & TELEPHONE CORP OF JAPAN THE WORLD'S LARGEST TELEPHONE COMPANY NTT RECENTLY AGREED TO BUY 15 MILLION NEXTEL SHARES FOR AROUND 75 MILLION AS PART OF A TECHNOLOGICAL ALLIANCE THAT WILL HELP NEXTEL BUILD THE TECHNOLOGICAL AND FINANCIAL CLOUT IT WILL NEED TO OVERCOME HURDLES OF COST TECHNOLOGY AND MARKETING NOW THAT THEY'VE MADE THESE TRANSACTIONS AND BECAUSE THE STOCK HAS COME DOWN SOME I'M MUCH MORE POSITIVE ABOUT IT AT THESE LEVELS MR HINES SAYS AS REPORTED NEXTEL HAS STARTED OFFERING ON A TEST BASIS ITS INTEGRATED DIGITAL SERVICES IN SOUTHERN CALIFORNIA AND PLANS TO COVER MOST OF THE STATE BY THE MIDDLE OF THIS YEAR FOR A PLAY ON WIRELESSEQUIPMENTMANUFACTURING COMPANIES THE PAINEWEBBER ANALYST RECOMMENDS TAKING A LOOK AT ALLEN GROUP THE BEACHWOOD OHIO COMPANY IS A LEADING SUPPLIER TO THE WIRELESS TWOWAY COMMUNICATIONS MARKET MANUFACTURING MOBILE ANTENNAS BASESTATION ANTENNAS AND CELLULAR TELEPHONE AREA EXTENDERS THE GROUP IS ALREADY SUPPLYING ANTENNAS IN GERMANY FOR PERSONAL COMMUNICATIONS SERVICES A NEW WIRELESS TECHNOLOGY THAT WILL COMPETE WITH CELLULAR AND MOBILERADIO SYSTEMS THE PCS TECHNOLOGY IS BEING DEVELOPED IN THE US AS WELL PENDING A GOVERNMENT AUCTION OF RADIOSPECTRUM FREQUENCIES SCHEDULED FOR THIS SPRING MR GETLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110099 940211 BUSINESS BRIEF CONTINENTAL CORP PROFIT TOTALING 69 MILLION IS POSTED FOR FOURTH QUARTER CONTINENTAL CORP BENEFITING FROM ITS FOCUS ON SPECIALTYINSURANCE LINES AFTER WITHDRAWING FROM OTHER BUSINESSES POSTED A 69 MILLION FOURTHQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS THE NEW YORK PROPERTY AND CASUALTY INSURANCE COMPANY SAID IT HAD NET INCOME OF 123 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 59 MILLION OR 12 CENTS A SHARE INCOME FROM CONTINUING OPERATIONS TOTALED 286 MILLION OR 50 CENTS A SHARE COMPARED WITH A LOSS OF 82 MILLION OR 16 CENTS A SHARE THE COMPANY SAID IT ADDED THAT IT IS STILL ASSESSING ITS LOSSES FROM JANUARY'S EARTHQUAKE IN LOS ANGELES AND THE WINTER FREEZE IT EXPECTS TO RELEASE ESTIMATES OF THOSE LOSSES LATER THIS MONTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CONTINENTAL STOCK FELL 1125 A SHARE OR 41 TO CLOSE AT 26375 9402110098 940211 TECHNOLOGY GTECH WINS TEXAS CONTRACT TO REPLACE FOOD STAMPS WITH AN ELECTRONIC SYSTEM BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL GTECH HOLDINGS CORP THE BIG MAKER OF COMPUTERIZED STATELOTTERY SYSTEMS WON A SEVENYEAR 200 MILLION CONTRACT TO REPLACE FOOD STAMPS WITH AN ELECTRONIC SYSTEM IN TEXAS OPENING A POTENTIALLY HUGE NEW MARKET TEXAS IS THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITSTRANSFER SYSTEM AND MANY OTHER STATES ARE EXPECTED TO IMPLEMENT SUCH SYSTEMS IN THE FUTURE VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW RECENTLY RECOMMENDED ADOPTING ELECTRONIC SYSTEMS FOR MAKING GOVERNMENT PAYMENTS STOCK OF GTECH BASED IN WEST GREENWICH RI SOARED 325 A SHARE OR 112 TO CLOSE AT 3225 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THIS PUTS GTECH RIGHT AT THE BEGINNING OF A NEW INDUSTRY SAID THOMAS RYAN GAMING ANALYST WITH LADENBURG THALMANN & CO UNDER THE TEXAS PLAN WHICH WILL FIRST BE IMPLEMENTED IN THE HOUSTON AREA THIS FALL FOODSTAMP RECIPIENTS WILL BE GIVEN PLASTIC CARDS WITH MAGNETIC STRIPES ON THE BACK THAT WILL FUNCTION LIKE BANK DEBIT CARDS THE RECIPIENT WILL USE THE CARD AT A CHECKOUT COUNTER BY PUNCHING IN A PERSONAL IDENTIFICATION NUMBER THE SYSTEM WILL REFUSE TO PAY FOR NONFOOD ITEMS SUCH AS CIGARETTES NAPKINS AND HOUSEHOLD CLEANERS JOHN SHARP TEXAS STATE COMPTROLLER SAID THE SYSTEM WILL CUT COSTS BY REDUCING FRAUD AND STOLEN FOOD STAMPS IT WILL ALSO STOP THIEVES FROM ROBBING PEOPLE OF THE STAMPS AND KEEP THEM FROM BEING SOLD FOR DRUGS OR LIQUOR THE EBT PROGRAM WILL REDUCE FOODSTAMP COSTS BY ELIMINATING PRINTING WAREHOUSING AND MAILING PAPER COUPONS HE SAID GTECH OPERATES THE STATELOTTERY SYSTEM IN TEXAS AND IS THE LEADING VENDOR OF SUCH SYSTEMS NATIONALLY ROBERT J RENDINE MANAGER OF PUBLIC AFFAIRS FOR GTECH SAID THIS FITS NICELY WITH WHAT WE DO WE DESIGN INSTALL AND OPERATE TRANSACTIONPROCESSING SYSTEMS FOR GOVERNMENTS HE ADDED WE THINK THERE IS A SIGNIFICANT OPPORTUNITY FOR STRATEGIC GROWTH INCLUDING ADDING OTHER BENEFIT SERVICES AT THE TERMINALS ONCE THEY'RE INSTALLED MR RENDINE SAID NEW YORK STATE WHERE GTECH ALREADY RUNS THE LOTTERY IS EXPECTED TO SOON CONSIDER BIDS FOR AN ELECTRONICBENEFITS SYSTEM HE SAID THE BUSINESS CARRIES THE SAME TYPE OF PROFIT MARGINS AS THE LOTTERY INDUSTRY TEXAS SAID THAT GTECH BEAT OUT TWO BIDDING GROUPS ONE COMPOSED OF DELUXE DATA CORP AND ELECTRONIC DATA SYSTEMS A GENERAL MOTORS CORP SUBSIDIARY AND THE OTHER INCLUDING CITICORP AND LOCKHEED CORP THE GTECH SYSTEM WHEN COMPLETED WILL INCLUDE 16000 RETAILERS AROUND TEXAS AND SERVE 27 MILLION FOODSTAMP RECIPIENTS GTECH ENTERED THE BENEFITS BUSINESS IN 1992 BY ACQUIRING THE PARIMUTUEL WAGERING BUSINESS OF GENERAL INSTRUMENT CORP THAT BUSINESS RUNS AN ELECTRONIC SYSTEM FOR AUTHORIZING FOODSTAMP ISSUANCE IN NEW YORK CITY ALTHOUGH IT DOESN'T USE THE DEBITCARD MODEL MR RYAN THE GAMING ANALYST SAID IF THIS WORKS IN TEXAS IT CAN WORK ANYWHERE AND GTECH WILL BE SEEN AS THE FRONTRUNNER IN THE INDUSTRY HE SAID THE BUSINESS ISN'T LIKELY TO CONTRIBUTE TO EARNINGS UNTIL THE FISCAL YEAR ENDING IN FEBRUARY 1996 IN THE NINE MONTHS ENDED NOV 27 GTECH REPORTED NET INCOME OF 441 MILLION OR 101 A SHARE ON REVENUE OF 4692 MILLION 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 9402110097 940211 WHO'S NEWS CLINTON TO NOMINATE WALLMAN A LAWYER FOR SEC COMMISSIONER WASHINGTON PRESIDENT CLINTON SAID HE INTENDS TO NOMINATE SECURITIES LAWYER STEVEN WALLMAN TO THE SECURITIES AND EXCHANGE COMMISSION FILLING A COMMISSIONER'S SEAT THAT HAS BEEN VACANT NEARLY TWO YEARS MR WALLMAN 40 YEARS OLD IS A PARTNER IN THE WASHINGTON LAW FIRM COVINGTON & BURLING HE SAID HE WOULDN'T HAVE ANY COMMENT UNTIL HE IS CONFIRMED BY THE SENATE IN A STATEMENT MR CLINTON SAID MR WALLMAN WILL MAKE AN EXCELLENT ADDITION TO THE SEC ADDING THAT THE INTENDED NOMINEE HAS LONG BEEN RECOGNIZED AS A LEADING EXPERT ON SECURITIES LAW AND HAS BEEN ACTIVELY ENGAGED IN THE FIGHT FOR SENSIBLE REGULATION IN THAT AREA AMONG OTHER THINGS MR WALLMAN DRAFTED LEGISLATION THAT WAS ADOPTED IN PENNSYLVANIA AND OHIO TO HELP DETER CORPORATE RAIDERS HE ALSO HAS REPRESENTED THE NATIONAL FOOTBALL LEAGUE IN CORPORATE MATTERS AT THE NFL COMMISSIONER PAUL TAGLIABUE SAID MR WALLMAN IS UNIQUELY QUALIFIED WITH VERY BROAD EXPERIENCE THAT HAS EARNED HIM GREAT SUPPORT FROM DIVERSE LABOR INVESTOR AND BUSINESS GROUPS MR WALLMAN'S CONFIRMATION WOULD GIVE THE SEC ITS FIRST FULL COMPLEMENT OF FIVE MEMBERS SINCE EARLY 1992 WHEN COMMISSIONER EDWARD FLEISCHMAN LEFT SEC CHAIRMAN ARTHUR LEVITT SAID HE IS LOOKING FORWARD TO WORKING WITH STEVE HIS EXPERIENCE WILL MAKE A VALUABLE CONTRIBUTION TO THE COMMISSION'S EFFORTS TO PROTECT AMERICAN INVESTORS 9402110096 940211 KOO KOO ROO TO POST A WIDER NET LOSS FOR FISCAL 2ND PERIOD LOS ANGELES KOO KOO ROO INC WILL POST A NET LOSS FOR THE SECOND QUARTER ENDED DEC 28 OF AROUND 418000 OR SEVEN CENTS A SHARE COMPARED WITH A NET LOSS OF 373967 OR 11 CENTS A SHARE ON ABOUT HALF AS MANY SHARES OUTSTANDING IN THE YEAREARLIER PERIOD COMPANY EXECUTIVES SAID BUT REVENUE FOR THE 13 WEEKS CLIMBED TO MORE THAN 13 MILLION FROM 938366 A YEAR AGO EVEN THOUGH THE COMPANY HAD ONE LESS RESTAURANT IN OPERATION PRESIDENT MICHAEL MOOSLIN SAID TOTAL SHARES OUTSTANDING ROSE TO 62 MILLION IN THE QUARTER FROM 34 MILLION A YEAR EARLIER OUR STOCK ISN'T AN EARNINGS PLAY NOW IT'S A GROWTH PLAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER KEN BERG A FORMER MORTGAGE BANKER TURNED RESTAURATEUR SAID IN AN INTERVIEW AT THE COMPANY'S WEST LOS ANGELES RESTAURANT WHERE WEEKLY SALES HAVE INCREASED 117 FROM A YEAR EARLIER THROUGHOUT THE COMPANY SAMESTORE SALES ARE RUNNING MORE THAN 50 AHEAD OF LAST YEAR HE SAID MR BERG HOPES KOO KOO ROO A FASTFOOD CHAIN SERVING SKINLESS FLAMEBROILED CHICKEN IN A DELITYPE SETTING WILL EVENTUALLY BE A CHALLENGER TO THE SUCCESSFUL BOSTON CHICKEN RESTAURANTS HE SAID HIS CONSERVATIVE GOAL IS TO HAVE 100 KOO KOO ROO FRANCHISES BY THE END OF THE YEAR AND TO HAVE 1000 RESTAURANTS UP AND RUNNING IN FIVE YEARS THE NET LOSS FOR THE SECOND QUARTER HE SAID STEMMED FROM STARTUP COSTS ASSOCIATED WITH SERVICING ITS NEW FRANCHISE OPERATIONS THE COMPANY CURRENTLY HAS SEVEN RESTAURANTS IN SOUTHERN CALIFORNIA NEW JERSEY AND MIAMI IT IS CONSTRUCTING THREE MORE AND HAS SOLD OR IS IN THE PROCESS OF SELLING FRANCHISE TERRITORIES IN FLORIDA ORANGE COUNTY CALIF SAN FRANCISCO CLEVELAND PITTSBURGH PHOENIX SCOTTSDALE ARIZ SEATTLE AND DENVER MR BERG SAID KOO KOO ROO HAS BEEN CONVERTING ALL OF ITS RESTAURANTS TO A CALIFORNIA KITCHEN CONCEPT OFFERING LOWFAT FOODS LIKE HANDCARVED TURKEY CUCUMBER SALAD BAKED YAMS AND STEAMED VEGETABLES 9402110095 940211 THE BUSINESS OF LAW LEGAL BEAT DOING BUSINESS IN VIETNAM HAS PITFALLS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL LAW FIRMS PREPARING TO DO BUSINESS IN VIETNAM ARE WARNING CORPORATE CLIENTS TO GO SLOWLY AND TO BEWARE THE PITFALLS ENCOUNTERED BY US COMPANIES IN CHINA AND EASTERN EUROPE IN RECENT YEARS THE VIETNAMESE LEGAL SYSTEM HAS JUST BEGUN TO GRAPPLE WITH BUSINESS ISSUES AND HAS NO COMPREHENSIVE COMMERCIAL CODE US LAWYERS WARN ITS BANKRUPTCY LAW ENVIRONMENTAL LAW AND INSURANCE LAW WERE ADOPTED JUST LAST YEAR FROM OWNERSHIP DISPUTES TO TAX ISSUES IT REMAINS UNCLEAR HOW US INTERESTS WILL BE TREATED IN MANY OF THE PROJECTS THAT AMERICAN BUSINESSES ENVISION NOW THAT THE TRADE EMBARGO HAS BEEN LIFTED THE MAJOR PITFALL IS WHAT IS THE LAW IN VIETNAM' SAYS JAMES HURLOCK CHAIRMAN OF WHITE & CASE A NEW YORK LAW FIRM PLANNING TO OPEN OFFICES IN HANOI AND HO CHI MINH CITY THIS YEAR THE ANSWER MAY NOT COME ANY TIME SOON LIKE ALL UNDERDEVELOPED COUNTRIES THAT OPEN UP SUDDENLY LIKE THIS THERE IS A CHANCE YOU WON'T KNOW WHAT THE RULES ARE FOR SEVERAL YEARS SAYS ANTHONY WILLIAMS CHAIRMAN OF COUDERT BROTHERS AN INTERNATIONAL LAW FIRM BASED IN NEW YORK MR WILLIAMS NOTES THAT IN CHINA FOR INSTANCE DEVELOPMENTS IN TRADEMARK LAW HAVE ONLY RECENTLY BEGUN TO PROVIDE THE PROTECTION THAT US COMPANIES WANT MR WILLIAMS COMPARES THE FLURRY OF INTEREST IN VIETNAM TO THE EARLY ENTHUSIASM THAT FOLLOWED THE FALL OF THE BERLIN WALL A MAJOR MANUFACTURING CLIENT WAS PREPARING TO BUY A STATEOWNED FACILITY IN THE FORMER EAST GERMANY WITH THE UNDERSTANDING THAT THE GOVERNMENT WOULD PROTECT THE BUYER FROM ANY ENVIRONMENTAL LIABILITY AFTER MONTHS OF NEGOTIATING THAT PROMISED PROTECTION DISAPPEARED MAKING THE PROJECT UNWORKABLE WE'RE ADVISING CLIENTS TO PROCEED VERY CAUTIOUSLY THROUGH THE FROTH AND THERE IS GOING TO BE A LOT OF FROTH BEFORE GETTING TO THE ALE MR WILLIAMS SAYS CERTAINLY NO ONE DOUBTS THE ECONOMIC POTENTIAL OF THE SOUTHEAST ASIAN NATION ITS POPULATION OF 72 MILLION MAKES IT A SIZABLE MARKET BIGGER THAN THAILAND OR THE PHILIPPINES ITS COMMUNIST GOVERNMENT WANTS TO SPUR BUSINESS AND FOREIGN TRADE AND AFTER YEARS OF WAR AND NEGLECT THE NATION HAS A DESPERATE NEED FOR FACTORIES ROADS AND OTHER PROJECTS ALL OF WHICH COULD GENERATE MILLIONS OF DOLLARS IN WORK FOR FOREIGN COMPANIES VIETNAM'S INTEREST IN ENCOURAGING FOREIGN INVESTMENT IS REFLECTED IN THE RECENT ENACTMENT OF A NUMBER OF LAWS SEEKING TO FACILITATE COMMERCE BUT SAYS IRWIN JAY ROBINSON PRESIDENT OF THE VIETNAMAMERICAN CHAMBER OF COMMERCE WHICH PROMOTES TRADE BETWEEN THE TWO COUNTRIES FROM AN AMERICAN POINT OF VIEW THOSE LAWS LEAVE A LOT TO BE DESIRED FOR INSTANCE THE VIETNAMESE BANKRUPTCY LAW WHICH TAKES EFFECT IN JULY DOESN'T CLARIFY JUST WHAT PROTECTION FOREIGN CREDITORS WILL HAVE MR ROBINSON A PARTNER AT NEW YORK LAW FIRM PHILLIPS NIZER BENJAMIN KRIM & BALLON SAYS THE VIETNAMESE BUSINESS LAWS TEND TO BE SO SPECIFIC THAT THEY ARE LIKELY TO PROVE INFLEXIBLE IN MANY SITUATIONS VIETNAM LAW ALSO ENSURES THAT IN FOREIGN JOINT VENTURES VIETNAMESE PARTNERS HAVE VETO POWER IN MANY DECISIONS EVEN WHEN THEY HAVE A MINORITY STAKE BECAUSE VIETNAM HAS NO BODY OF JUDGEMADE CASE LAW ON BUSINESS DISPUTES AND BECAUSE MANY BUSINESS ISSUES ARE NEW TO ITS LEGAL SYSTEM US LAWYERS SAY CLIENTS WILL WANT TO AVOID GOING TO COURT THERE INSTEAD US BUSINESSES ARE BEING URGED TO RELY ON DETAILED CONTRACTS THAT SPELL OUT HOW THE PARTIES WILL RESOLVE ANY DISAGREEMENTS THAT ARISE LAWYERS SAY THAT ARBITRATION USUALLY THROUGH THE INTERNATIONAL CHAMBER OF COMMERCE IS FAVORED BY THE VIETNAMESE GOVERNMENT AS A WAY TO RESOLVE COMMERCIAL DISAGREEMENTS WITH FOREIGN INVESTORS DESPITE THEIR QUALMS US LAW FIRMS SEE A RISING DEMAND FOR THEIR OWN SERVICES IN VIETNAM ALTHOUGH AMERICAN LAWYERS CAN'T PRACTICE IN VIETNAM COURTS THEY CAN ADVISE CLIENTS ON WHAT TERMS THE LAWS MAY IMPOSE ON PROJECTS SUCH AS IN WHAT WAY PROFITS CAN BE SPLIT WITH VIETNAMESE PARTNERS AND HOW US PARTNERS' EARNINGS WILL BE TAXED IN VIETNAM US REGULATORY LAWYERS ALSO ARE HELPING CLIENTS DETERMINE WHETHER THEIR PLANS WILL RUN AFOUL OF THE US TRADE RESTRICTIONS THAT STILL APPLY TO VIETNAM THOUGH THE EMBARGO HAS BEEN LIFTED VIETNAM IS EXPECTED TO BE PLACED IN THE SAME CATEGORY OF TRADING PARTNERS AS CAMBODIA AND ALBANIA MEANING CERTAIN HIGHTECH EQUIPMENT COULDN'T BE SHIPPED THERE AND PRODUCTS SENT BACK TO THE US WOULD FACE HIGH TARIFFS MANUFACTURING PROPOSALS WHICH COULD BENEFIT FROM VIETNAM'S LOW LABOR COSTS ARE HAMPERED BY THE NEED FOR TRANSPORTATION AND ELECTRICPOWER IMPROVEMENTS FOR NOW THE SAFEST BUSINESS OPPORTUNITIES FOR FOREIGN COMPANIES APPEAR TO BE INFRASTRUCTURE PROJECTS SUCH AS PLANS TO IMPROVE VIETNAM'S MILLIONS OF MILES OF DAMAGED ROADS AS WELL AS ITS HARBORS AND PORTS THE VIETNAMESE GOVERNMENT IS IN LINE TO RECEIVE HUNDREDS OF MILLIONS OF DOLLARS IN LOANS FROM INTERNATIONAL AGENCIES FOR SUCH WORK JEFFREY SNYDER AN ATTORNEY IN THE WASHINGTON OFFICE OF GRAHAM & JAMES A LAW FIRM WITH AN AFFILIATE IN VIETNAM SAYS HE HOPES US COMPANIES WILL BE MORE REALISTIC THAN THEY HAVE BEEN IN SOME RECENT FOREIGN VENTURES SURE THE EMBARGO IS GONE AND THERE ARE TREMENDOUS OPPORTUNITIES HE SAYS BUT WE ARE AT A VERY EARLY STAGE IN THE ECONOMIC DEVELOPMENT BETWEEN THE TWO COUNTRIES DAVID L PAUL THE FORMER CHIEF EXECUTIVE OF FAILED CENTRUST BANK IN MIAMI PLEADED GUILTY TO THE US GOVERNMENT'S REMAINING 29 CHARGES AGAINST HIM MR PAUL AGE 54 WAS CONVICTED IN DECEMBER OF 68 COUNTS OF FRAUD MOST INVOLVING ALLEGATIONS THAT HE SIPHONED 32 MILLION FROM CENTRUST AND SPENT IT ON HIS YACHT AND HIS HOMES DURING THE 1980S A SECOND TRIAL WAS SET TO START EARLY THIS YEAR ON 29 RACKETEERING AND SECURITIES COUNTS STEMMING FROM CENTRUST'S DEALINGS WITH AMONG OTHERS THE ROGUE BANK OF CREDIT & COMMERCE INTERNATIONAL NEITHER MR PAUL NOR HIS ATTORNEYS WERE AVAILABLE FOR COMMENT YESTERDAY MR PAUL'S CASE IS THE FIRST CONVICTION OF A US BANKER GROWING OUT OF THE BCCI INVESTIGATIONS IN THIS COUNTRY SAID ASSISTANT US ATTORNEY ALLAN J SULLIVAN 9402110094 940211 BUSINESS BRIEF FORD MOTOR CO CHECKS AVERAGING 1350 FOR PROFITSHARING ARE SET FORD MOTOR CO SAID ITS SALARIED AND HOURLY WORKERS WILL RECEIVE PROFITSHARING CHECKS AVERAGING 1350 ON MARCH 9 THE PAYOUT TO ABOUT 152000 ELIGIBLE EMPLOYEES WILL BE SLIGHTLY HIGHER THAN 1990'S AVERAGE 1025 AND IS THE EIGHTH PROFITSHARING PAYMENT FOR THE DEARBORN MICH AUTO MAKER THE LAST TIME FORD DISTRIBUTED PROFITSHARING CHECKS WAS IN 1990 BASED ON 1989 PROFIT OF 383 BILLION CHRYSLER CORP SAID ITS WORKERS WILL RECEIVE PROFITSHARING CHECKS AVERAGING 4300 GENERAL MOTORS CORP SAID IT WON'T PAY BONUSES OR PROFITSHARING DISTRIBUTIONS TO EXECUTIVES OR WORKERS THOUGH IT HAD AN OVERALL PROFIT IN 1993 FORD'S PROFITSHARING PROGRAM IS BASED ON EARNINGS IN THE US THIS YEAR'S PAYOUT IS BASED ON FORD'S 1993 PROFIT OF 25 BILLION 9402110093 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD THE DEVELOPING LEAP MANY EMERGING NATIONS ARE MOVING DIRECTLY INTO THE NEW AGE BYPASSING THE WIRED STAGE BY CYNTHIA OWENS BANGKOK THAILAND WHEN WANDEE SIDHIKONGSAK AND HER HUSBAND MOVED INTO A NEW APARTMENT HERE IN 1991 THEY GOT THE WATER AND ELECTRICITY TURNED ON RIGHT AWAY TELEPHONE SERVICE WAS A DIFFERENT STORY THE COUPLE WAITED FOR A YEAR HOPING TO GET ONE OF THAILAND'S PRECIOUS PHONE LINES BUT THEY FINALLY GAVE UP AND BOUGHT A CELLULAR PHONE WHICH THEY STARTED USING IMMEDIATELY THERE IS NO CHOICE SAYS MRS WANDEE A 30YEAROLD BUYER FOR AMERICAN STANDARD CO IT'S JUST TOO LONG TO KEEP WAITING AS MORE PEOPLE DRAW THE SAME CONCLUSION THAILAND AND MANY OTHER DEVELOPING COUNTRIES ARE MOVING RAPIDLY INTO WIRELESS TELECOMMUNICATIONS BEFORE THEY ARE EVEN CLOSE TO FULLY WIRED FOR CONVENTIONAL PHONE SERVICE WHILE CELLULAR TECHNOLOGY REMAINS A LUXURY IN THE WEST PEOPLE IN THESE NATIONS ARE USING IT TO CONNECT TO THE WORLD AND TO ONE ANOTHER MORE EXTENSIVELY MORE QUICKLY AND MORE ECONOMICALLY THAN THEY COULD THROUGH THE LAYING OF CABLE TO EVERY OFFICE AND HOUSEHOLD THE TECHNOLOGY IS THE DRIVING FORCE SAYS PRASIT PRAPINMONGKOLKARN DIRECTOR OF TELECOMMUNICATIONS RESEARCH AT CHULALONGKORN UNIVERSITY IN BANGKOK THE NEW SYSTEMS ARE MUCH QUICKER TO INSTALL AND CAN ALLOW THIRD WORLD COUNTRIES TO CATCH UP VERY FAST WHAT'S HAPPENING IN THAILAND PROVIDES AN OUTLINE OF CHANGES UNFOLDING ELSEWHERE THOUGH THE DETAILS MAY VARY THAILAND HAS A MODERATE NUMBER OF CONVENTIONAL PHONE LINES FOR INSTANCE BUT SOME OF ITS LESSDEVELOPED NEIGHBORS ARE MAKING THE JUMP TO CELLULAR COMMUNICATIONS MORE DIRECTLY BYPASSING TRADITIONAL LINES ALMOST ENTIRELY EN ROUTE TO THE WIRELESS AGE IN THAILAND THE SUPPLY OF REGULAR LINES HAS BEEN FLAT FOR YEARS BECAUSE THE COUNTRY'S UNSTABLE COALITION GOVERNMENTS HAVE HAD TROUBLE AGREEING ON INFRASTRUCTURE PROJECTS AFTER EXTENDED HAGGLING THE GOVERNMENT LAST YEAR ALLOWED TWO PRIVATE COMPANIES TO BEGIN INSTALLING THREE MILLION LINES BUT EVEN WHEN THE PROJECT IS COMPLETED IN 1997 IT WILL LEAVE THAILAND WHOSE POPULATION TODAY STANDS AT 57 MILLION WITH JUST 46 MILLION LINES WHILE THE SUPPLY OF LINES HAS BEEN STAGNANT THAILAND'S RAPID ECONOMIC GROWTH SINCE 1988 HAS SENT DEMAND SURGING THE WAITING LIST FOR PHONE LINES STOOD AT 15 MILLION IN THE SECOND HALF OF LAST YEAR AND THE WAITING TIME FOR INSTALLATION WAS AS MUCH AS THREE YEARS SAYS CHESADA LOHAUNCHIT MANAGING DIRECTOR FOR TARA SIAM BUSINESS INFORMATION LTD A RESEARCH FIRM IN BANGKOK THE THAI GOVERNMENT FIGURED THAT CELLULAR PHONES ALREADY POPULAR IN MORE ADVANCED ASIAN CAPITALS LIKE HONG KONG AND SINGAPORE COULD EASE THAILAND'S SHORTAGE OF CONVENTIONAL LINES CELLULAR COMPANIES WOULD ONLY HAVE TO INSTALL TRANSMISSION STATIONS IN KEY AREAS RATHER THAN LAY NEW PHONE LINES AND ROUTE THEM THROUGH ALREADY INADEQUATE AND AGING SWITCHING STATIONS THAT MAKES CELLULAR SYSTEMS CHEAPER JUST ABOUT EVERYWHERE IN THAILAND THOUGH THE COST SAVINGS ARE BIGGEST IN PLACES WITH LITTLE OR NO CONVENTIONAL TELEPHONE INFRASTRUCTURE AFTER A YEAR OF WIRELESS STRUGGLES BY THAILAND'S TWO STATEOWNED PHONE ENTERPRISES CELLULAR PHONES TOOK OFF IN 1989 WHEN THE GOVERNMENT GRANTED TWO LONGTERM PRIVATE CONCESSIONS TO THAI COMPANIES ADVANCED INFO SERVICES PCL A PUBLICLY LISTED SUBSIDIARY OF SHINAWATRA COMPUTER & COMMUNICATIONS CO AND TOTAL ACCESS COMMUNICATIONS CO A SUBSIDIARY OF UNITED COMMUNICATIONS INDUSTRY PCL WHICH WAS EXPECTED TO BE LISTED LAST MONTH ON THE STOCK EXCHANGE OF THAILAND IN JUST SEVEN YEARS CELLULAR PHONES HAVE GRABBED 20 OF ALL PHONE SERVICE IN THE COUNTRY THEIR NUMBERS JUMPED MORE THAN 60 LAST YEAR TO 456300 SAYS PHATRA THANAKIT CO A THAI BROKERAGE COMPANY AND THAILAND WILL ADD 200000 CELLULAR PHONES A YEAR THROUGH 1996 ACCORDING TO SG WARBURG GROUP PLC A BRITISH MERCHANT BANK THE TWO PRIVATE NETWORKS ARE HOOKING UP NEW CUSTOMERS AS RAPIDLY AS THEY CAN WE CANNOT BUILD THE INFRASTRUCTURE FAST ENOUGH TO KEEP UP WITH THE DEMAND SAYS BOONCHAI BENCHARONGKUL CHIEF EXECUTIVE OFFICER OF UNITED COMMUNICATIONS SO FAR THOUGH WAITING LISTS FOR CELLULAR SERVICE ARE SHORT FALLING PRICES FOR BOTH SERVICE AND EQUIPMENT ARE FEEDING THE GROWTH COMPETITION BETWEEN THAILAND'S TWO PRIVATESECTOR CELLULAR SERVICE PROVIDERS HAS BEEN INTENSE REDUCING CONNECTION FEES TO 16 FROM ABOUT 500 IN 1989 A FRACTION OF THE OFFICIAL 200 INSTALLATION CHARGE FOR A PHONE LINE MOST CELLULAR CUSTOMERS NOW PAY ABOUT THE SAME IN MONTHLY AND PERMINUTE CHARGES AS DO PEOPLE WITH REGULAR PHONES PRICES OF CELLULAR PHONES ALSO HAVE PLUNGED BY TWOTHIRDS SINCE 1989 TO AN AVERAGE OF ABOUT 1200 A BIT LESS THAN THE GOING BLACKMARKET RATE OF 1400 FOR CONVENTIONAL PHONE LINES DESPITE THE JUMP LAST YEAR IN UNIT SALES OF CELLULAR PHONES MAKERS SAY REVENUE WAS FLAT BECAUSE OF THE PRICE CUTTING WE SEE STRONG GROWTH BUT IT IS A DIFFICULT MARKET SAYS ERIK VON ESSEN MANAGER OF THE BANGKOK OFFICE OF THE SWEDISH COMPANY TELEFON AB LM ERICSSON'S LOCAL SUBSIDIARY IN MANY PLACES IN ASIA CELLULAR PHONES ARE MORE OF A STATUS SYMBOL THAN A BUSINESS TOOL NOT SO IN THAILAND BUSINESSPEOPLE AND ANALYSTS SAY THE COUNTRY COULDN'T HAVE SUSTAINED ITS RECENT RAPID ECONOMIC GROWTH WITHOUT CELLULAR PHONES ASAWIN CHINTAKANANDA DEPUTY CHIEF EXECUTIVE OFFICER OF SAHAVIRAYA GROUP A THAI COMPANY THAT MAKES STEEL AND OFFICE PRODUCTS SAYS WORK ON A NEW STEEL FACTORY THE COMPANY IS BUILDING IN SOUTHERN THAILAND WOULD HAVE SLOWED MARKEDLY WITHOUT CELLULAR PHONES THAILAND'S CONVENTIONAL PHONE SYSTEM BUILT ON DATED TECHNOLOGY REQUIRES OPERATOR ASSISTANCE FOR MANY DOMESTIC LONGDISTANCE CALLS AND LONGDISTANCE LINES BECOME JAMMED NEARLY EVERY DAY DR ASAWIN SAYS IT IS CHEAPER AND EASIER FOR HIM TO CALL THE FACTORY SITE BY CELLULAR PHONE THAN ON THE REGULAR PHONE IN HIS OFFICE THE MOBILE PHONE IS NOT A LUXURY IT'S A NECESSITY HE SAYS BANGKOK'S HORRENDOUS VEHICULAR TRAFFIC AMPLIFIES THE NEED FOR RELIABLE COMMUNICATIONS SALESPEOPLE JUST CAN'T PHYSICALLY GET TO ALL THE PLACES THEY NEED TO GO SAYS THOMAS BEDDOW MANAGING DIRECTOR FOR MINNESOTA MINING & MANUFACTURING CO'S THAI SUBSIDIARY HE ARRANGED FOR THE COMPANY TO PROVIDE INTERESTFREE LOANS FOR ALL ITS SALES STAFF TO BUY CELLULAR PHONES WANPAN PUKWILAIKIAT A 34YEAROLD ACCOUNTANT BOUGHT A CELLULAR PHONE LAST MONTH OUT OF PERSONAL NECESSITY MS WANPAN OFTEN SPENDS MORE THAN TWO HOURS COMMUTING EACH WAY AND DOESN'T ARRIVE HOME UNTIL LATE IN THE EVENING BECAUSE OF HER TIME SPENT IN TRAFFIC AND A RECENT JOB CHANGE PEOPLE HAD TROUBLE REACHING HER AND SHE LOST TOUCH WITH FAMILY AND FRIENDS NOW SHE CARRIES THE CELLULAR PHONE AND A PAGER EVERYWHERE IT'S IMPOSSIBLE TO SPEAK WITH ANYONE WITHOUT IT MS WANPAN SAYS BUT IF CELLULAR PHONES WEREN'T ESSENTIAL MR BEDDOW SAYS MANY PEOPLE WOULD SCRAP THEM BECAUSE THE QUALITY OF SERVICE IS SPOTTY HE AND HIS FAMILY WHO LIVE IN NORTHWESTERN BANGKOK HAVE PHONES FROM THREE DIFFERENT CELLULAR NETWORKS BUT THEY ARE LUCKY IF THEY CAN GET ONE OF THE THREE TO CONNECT AT ANY GIVEN TIME ONCE ON THE LINE MR BEDDOW SAYS HE MUST USUALLY TALK OVER OTHER CONVERSATIONS THE SERVICE PROVIDERS PROMISE IMPROVEMENTS BY JUNE ADVANCED INFO SERVICES AND TOTAL ACCESS COMMUNICATIONS WILL BEGIN OFFERING DIGITAL AS WELL AS ANALOG LINES THEY SAY THE DIGITAL LINES WHICH WILL COST SUBSCRIBERS MORE TO USE WILL CLEAR UP MUCH OF THE STATIC AND ALLOW THEM TO EXPAND SERVICE MORE RAPIDLY GROWING COMPETITION ALSO MAY SPUR BETTER SERVICE THE TWO PRIVATE OPERATORS CONTROL 80 OF THE THAI CELLULARPHONE BUSINESS AND THEIR SHARE IS STILL GROWING BECAUSE THE STATE ENTERPRISEOWNED NETWORKS AREN'T EXPANDING BUT THE GOVERNMENT IS WIDELY EXPECTED TO ALLOW NEW ENTRIES IN THE NEXT FEW YEARS THE COMPETITION IS VERY KEEN AND IT IS GOING TO GET STRONGER SAYS MR PRASIT OF CHULALONGKORN UNIVERSITY THE THREE MILLION NEW CONVENTIONAL LINES TO BE INSTALLED BY 1997 WILL STIMULATE RATHER THAN DAMP DEMAND FOR CELLULAR PHONES IF THAILAND FOLLOWS THE PATTERN OF OTHER COUNTRIES THE MORE FIXED LINES YOU HAVE THE MORE TELEPHONE TRAFFIC YOU GENERATE AND THE MORE YOU HAVE TO BE REACHABLE SAYS MIKA VEHVILAINEN COUNTRY MANAGER FOR OY NOKIA OF FINLAND WHICH SELLS CELLULAR PHONES IN THAILAND NEIGHBORING LAOS AND CAMBODIA WHICH HAVE VIRTUALLY NO INFRASTRUCTURE HAVE SEEN THAILAND BENEFIT FROM CELLULAR COMMUNICATIONS TO SPEED THEIR OWN DEVELOPMENT THE TWO COUNTRIES HAVE EACH APPROVED CONTRACTS WITH THAI COMPANIES TO SET UP CELLULAR NETWORKS IN CAMBODIA SHINAWATRA WON A CONTRACT TO INSTALL AS MANY CELLLULAR HOOKUPS 5000 IN PHNOM PENH AS THE CITY NOW HAS REGULAR PHONE LINES THE GOVERNMENT DECIDED TO SKIP TO CELLULAR BECAUSE INSTALLING WIRED LINES COULD TAKE YEARS IN A COUNTRY WITH NO TELEPHONE OR ELECTRIC POLES AND WHERE ALL THE EQUIPMENT WOULD HAVE TO BE IMPORTED SHINAWATRA HOPES TO DO THE SAME THING IN LAOS BUT THE DETAILS HAVE YET TO BE WORKED OUT UNITED COMMUNICATIONS ALSO INSTALLED CELLULARPHONE SERVICE IN CAMBODIA LAST YEAR CELLULAR LINES NOW OUTNUMBER TRADITIONAL LINES IN THE COUNTRY BY A 2TO 1 MARGIN MS OWENS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BANGKOK BUREAU 9402110092 940211 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY ON THE GAMES FOR SOME A CLASSY REUNION THE DEJA VU GAMES BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER I DIDN'T TAKE A POLL ON THE MATTER BUT I'D WAGER THAT BEFORE THAT HIT MAN WHACKED NANCY KERRIGAN ON THE KNEE JAN 6 NOT ONE IN 10 AMERICANS WAS MORE THAN DIMLY AWARE THAT ANOTHER WINTER OLYMPICS WAS SCHEDULED FOR THE NEXT MONTH IN THIS RUDDYCHEEKED BURG NORTH OF OSLO WINTER OLYMPICS HAVE A WAY OF SNEAKING UP ON PEOPLE AND THIS ONE XVIITH IN THE ORDER WAS SNEAKIER THAN MOST COMING JUST TWO YEARS AFTER THE LAST ONE INSTEAD OF THE USUAL FOUR THAT'S BECAUSE BACK IN 1986 THE FOLKS AT THE INTERNATIONAL OLYMPIC COMMITTEE DECIDED THAT CONTINUING THE PRACTICE OF STAGING BOTH THE WINTER AND SUMMER GAMES IN THE SAME QUADRENNIAL YEAR WAS PUTTING UNDUE STRESS ON THE WALLETS OF THE TELEVISION NETWORKS AND CORPORATE SPONSORS THAT MAKE THESE EXTRAVAGANZAS POSSIBLE THE IOC'S SOLUTION WAS TO UNCOUPLE THE TWO BY POPPING IN A WINTER QUICKY AND GO FROM THERE SO TO THE QUESTION DIDN'T WE JUST DO THIS THE ANSWER IS UHHUH THERE ARE OF COURSE OTHER QUESTIONS TO BE ANSWERED DURING THE 16 DAYS OF TORCHLIT COMPETITION THAT BEGIN TOMORROW BUT THE ONE THAT INTERESTS MOST AMERICANS HAS NOTHING DIRECTLY TO DO WITH THE DOINGS ON THE SLOPES OR RINKS IT'S ABOUT THE STATUS OF FIGURE SKATER TONYA HARDING WHOSE MANAGER/LIVEIN EXHUSBAND AND BODYGUARD ENGINEERED THE ATTACK THAT KNOCKED CHIEFRIVAL KERRIGAN OUT OF THE US NATIONALS A MONTH AGO AND CLEARED THE WAY FOR MS HARDING TO WIN ONE OF THE TWO OLYMPIC BERTHS THE US OLYMPIC COMMITTEE WILL DECIDE THIS EVEN AS THE GAMES GO ON TONYA HAS DUG IN HER TOES AND FLANKED AND FRONTED HERSELF WITH LAWYERS SUDDENLY EVERYBODY IN THE US IS AN EXPERT ON DUE PROCESS SHOULD SHE COMPETE AS THINGS STAND RIGHT NOW WHY NOT SHE HASN'T BEEN INDICTED CRY THE MANY WHO ACCEPT THE BART SIMPSON STANDARD OF INNOCENCE YOU DIDN'T SEE ME SO YOU CAN'T PROVE I DID IT HOW ABOUT IF SHE IS INDICTED THAT AIN'T PROOF WHAT IF SHE'S CONVICTED GIVE HER A PAROLE IT'LL BE TOUGH TO TEAR AWAY FROM THAT GRIPPING STUFF BUT IF WE CAN WE'LL FIND MANY FAMILIAR FACES AMONG THE ATHLETES INDEED COMING SO CLOSE AFTER THE LAST ONE THESE SHAPE UP AS THE DEJA VU GAMES WITH MANY OF THE CHAMPIONS FROM THE 1992 OUTING IN ALBERTVILLE FRANCE RETURNING IN THIS CATEGORY ARE THREE OF THE FOUR AMERICANS WHO WON GOLD MEDALS AT THAT AFFAIR SPEED SKATER BONNIE BLAIR SHORTTRACK SKATER CATHY TURNER AND FREESTYLE SKIER DONNA WEINBRECHT AS WELL AS ALBERTO TOMBA THE FUNLOVING ITALIAN SLALOM ACE GEORG HACKL THE MUSTACHIOED GERMAN LUGER PLUS VEGARD ULVANG AND BJORN DAHLIE HEROES OF THE CROSSCOUNTRYSKIINGLOVING NORWEGIANS ADDITIONALLY THE FIELD IN FIGURE SKATING WILL BE SWELLED BY THAT SPORT'S NEW LAW OF RETURN THAT PERMITS ONETIME REPRISES BY EXOLYMPIANS WHO'VE TURNED PROFESSIONAL BRIAN BOITANO OF SUNNYVALE CALIF THE 1988 MEN'S CHAMP WILL BE BACK SO WILL THE GERMAN KATARINA WITT WOMEN'S GOLD MEDALIST IN 1984 AND '88 AND THE 1984 ICE DANCE WINNERS JAYNE TORVILL AND CHRISTOPHER DEAN OF BRITAIN IN ALPINE SKIING ALL THE CONTESTANTS ARE PROS ALL THE TIME BUT DON'T TRY TO MAKE SENSE OF SUCH THINGS THESE GAMES WILL BREAK GROUND OOPS ICE IN AT LEAST ONE RESPECT THEY WILL FINALLY TRANSPORT THE NEW WORLD ORDER TO SPORTS BY RATIFYING THE BREAKUP OF THE OLD SOVIET UNION TEAM THE SOVS PER SE DIDN'T COMPETE IN EITHER OF THE 1992 GAMES BUT THEIR SPORTS ORGANIZATIONS SURVIVING WERE REPRESENTED UNDER SUCH EUPHEMISMS AS THE COMMONWEALTH OF INDEPENDENT STATES OR UNIFIED TEAM THIS TIME THEY'LL BE COMPETING AS RUSSIANS UKRAINIANS GEORGIANS AND SO ON AND THE DIVISION WILL BOOST THE NUMBER OF COMPETING NATIONS TO A RECORD 69 IN 1992 THOUGH ATHLETES FROM ONLY 14 OF THE 64 COMPETING NATIONS WON GOLD MEDALS SHOWING WHAT A SMALL WORLD THE GAMES OF ICE AND SNOW REALLY ENCOMPASS OTHER THINGS ABOUT THE LILLEHAMMER GAMES WON'T BE CHANGED FROM PAST FESTS MOST WINTER SPORTS POSSESS AN ELEMENT OF DANGER AND IN SOME IT IS CONSIDERABLE THIS WAS BROUGHT HOME BY THE DEATH OF ULRIKE MAIER A TOP MEMBER OF THE AUSTRIAN WOMEN'S ALPINE TEAM IN A CRASH DURING A WORLD CUP DOWNHILL RACE IN GARMISCHPARTENKIRCHEN GERMANY THE ACCIDENT HAS PROMPTED SOME TO ASK WHETHER SPEEDS IN THAT SPORT HAVE BECOME EXCESSIVELY HIGH PARADOXICALLY THOUGH MUCH OF THE DRAMA IS DRAINED FROM WINTER OLYMPIC SPEED SPORTS BY THE FACT THAT IN SOME THE HARDWARE SHARES THE SPOTLIGHT WITH THE HUMANS AND BY FORMATS THAT MATCH CONTESTANTS AGAINST THE STOPWATCH OR MEASURING TAPE MORE THAN ONE ANOTHER TO HEAR THE EXPERTS TELL IT THE WINNERS ON THE LUGE AND BOBSLED RUNS ARE DETERMINED AS MUCH BY THEIR VEHICLES AS THEIR OWN SKILL HOW COMPETITIVELY SATISFYING WOULD THE SUMMER GAMES' 100METER DASH BE IF THE RUNNERS RAN SINGLY AGAINST THE CLOCK BUT THAT SAID THESE PROCEEDINGS ARE SHAPING UP TO BE BETTER THAN SATISFACTORY WEATHER WAS A PROBLEM AT THE PAST TWO WINTER GAMES BUT NOT IN THE WAY YOU'D EXPECT IT WAS TOO WARM AND DRY RATHER THAN TOO COLD OR SNOWY BASED ON THE ARMPITHIGH SNOW IN EVERY UNPLOWED AREA THERE'LL BE NO SHORTAGE OF THE WHITE STUFF HEREABOUTS UNTIL JUNE AND STYLIZED OR NOT WINTER OLYMPICS EVENTS STILL ARE CAPABLE OF PRODUCING ATHLETIC THRILLS OF THE HIGHEST ORDER RECALL IF YOU WILL 1976 AT INNSBRUCK AUSTRIA WHEN HOMETEAMER FRANZ KLAMMER A SLIM 22YEAROLD FROM THE VILLAGE OF MOOSWALD CLATTERED PELLMELL THROUGH THE DOWNHILL COURSE TO OVERTAKE THE SWISS VETERAN BERNHARD RUSSI FOR THE GOLD US TELEVISION MUST HAVE REPLAYED IT 100 TIMES AND IT WAS BREATHTAKING EVERY TIME I REMEMBER EVERYTHING ABOUT THAT RUN FROM BEGINNING TO END VERY CLEAR SAYS MR KLAMMER WHO STILL LIVES IN MOOSWALD AND STILL SKIS COMPETITIVELY ALBEIT AT THE MASTERS' LEVEL I WANTED THE NO 3 START POSITION BECAUSE IT WAS MY FAVORITE BUT RUSSI HE GOT IT I GOT NO 15 WHICH WAS VERY BAD BECAUSE I KNEW THE SNOW WOULD BE RUTTED BY THEN RUSSI MADE A GREAT RUN HE WAS ABOUT A HALFSECOND IN FRONT OF EVERYONE WHICH IS A LOT TO BEAT HIM I KNEW I HAD TO TAKE A DIFFERENT STRAIGHTER LINE THAN I'D TAKEN IN PRACTICE IT WAS BUMPY BUT I STAYED IN MY TUCK I DIDN'T CHICKEN OUT YEAH I SUPPOSE IT WAS DANGEROUS BUT I DIDN'T THINK OF THAT I HAD NO WORRY EXCEPT TO GO FASTER I WAS IN CONTROL OF EVERYTHING THAT'S HOW IT IS WHEN YOU'RE YOUNG AND IN SHAPE AT LEAST THAT'S HOW IT CAN BE 9402110091 940211 BUSINESS BRIEF SEAGATE TECHNOLOGY INC FIRM SAYS IT WAS SUCCESSFUL IN TAX LITIGATION WITH IRS SEAGATE TECHNOLOGY INC SAID IT WAS SUCCESSFUL IN LITIGATION WITH THE INTERNAL REVENUE SERVICE AND AS A RESULT BELIEVES IT WON'T HAVE TO PAY MOST OF THE 1123 MILLION IN TAXES SOUGHT BY THE IRS THE IRS CLAIMED SEAGATE OWED TAXES ON AN ADDITIONAL 285 MILLION OF INCOME FOR THE FISCAL YEARS 1983 THROUGH 1987 AT ISSUE WAS THE ALLOCATION OF INCOME BETWEEN SEAGATE AND ITS SINGAPORE MANUFACTURING FACILITY SEAGATE SAID THAT BASED ON AN OPINION ISSUED BY THE US TAX COURT ON THE MATTER IT BELIEVES THE DISPUTED INCOME FIGURE TO BE ABOUT 45 MILLION INSTEAD OF 285 MILLION A SEAGATE SPOKESMAN SAID THE COMPANY DOESN'T EXPECT ANY NEGATIVE IMPACT ON EARNINGS RELATED TO THE MATTER SEAGATE IS A SCOTTS VALLEY CALIF MAKER OF COMPUTER DATASTORAGE PRODUCTS THE COMPANY OR THE IRS MAY APPEAL THE DECISION SEAGATE SAID 9402110090 940211 FOREIGN EXCHANGE DOLLAR EASES AGAINST THE YEN AS TRADERS ARE BAFFLED BY USJAPAN TRADE TALKS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL A BIT AGAINST THE YEN AS CONFLICTING REPORTS ON THE PROGRESS OF HIGHLEVEL USJAPAN TRADE NEGOTIATION LEFT TRADERS BAFFLED AS TO THE DOLLAR'S NEARTERM DIRECTION THE US CURRENCY TOOK A BIGGER HIT AGAINST THE MARK AS TRADERS TOOK PROFITS ON THE SHARP DOLLAR RISES THAT FOLLOWED LAST WEEK'S BOOST IN US INTEREST RATES THE MARK ALSO WAS HELPED AFTER A SENIOR BUNDESBANK OFFICIAL HINTED THAT GERMANY IS LESS LIKELY TO CUT INTEREST RATES BECAUSE OF THE RECENT WEAKNESS OF THE MARK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17533 MARKS DOWN FROM 17585 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10815 YEN DOWN FROM 10835 YEN STERLING WAS TRADING AT 14620 UP A BIT FROM 14615 ON FRIDAY FINANCIAL MARKETS IN JAPAN WERE CLOSED FOR A NATIONAL HOLIDAY WITH JAPAN'S DEPUTY PREMIER TSUTOMU HATA UNDER PRESSURE TO PRODUCE AN ACCEPTABLE BILATERAL TRADE ACCORD WITH THE US PRIOR TO TODAY'S SUMMIT MEETING IN WASHINGTON DC BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON TRADERS NOTED CONTRADICTORY SIGNALS ABOUT WHETHER THAT WOULD BE ACHIEVED ON TIME EVEN AS AN UNIDENTIFIED JAPANESE OFFICIAL ANNOUNCED THAT MR HATA AND US SECRETARY OF STATE WARREN CHRISTOPHER AGREED TO REACH AN ACCORD IN THE TRADE TALKS BY THE FRIDAY DEADLINE WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID WE HAVE NOT MADE A LOT OF PROGRESS THE TALKS APPEAR TO REMAIN STALLED OVER JAPAN'S REFUSAL TO ACCEPT NUMERICAL TARGETS ON TRADE AGREEMENTS COVERING AUTOS AND AUTO PARTS ACCESS TO JAPAN'S INSURANCE MARKET AND GOVERNMENT PROCUREMENT LACK OF AN AGREEMENT IS SEEN STRENGTHENING THE YEN DESPITE JAPAN'S ECONOMICQUAGMIRE BECAUSE THE US IS BELIEVED UNLIKELY TO DISCOURAGE A WEAK YEN UNTIL JAPANESE TRADE BARRIERS COME DOWN THE WAY I READ IT IS THAT THE JAPANESE WON'T GIVE IN OTHERWISE OUR RHETORIC WOULDN'T BE GETTING SO LOUD SAID PETER DALEY VICE PRESIDENT OF FIRST FIDELITY BANK CORP PHILADELPHIA HE SAID DESPITE MARKET SENTIMENT THAT THE SUMMIT WON'T BE PRODUCTIVE NO ONE WANTS TO BE CAUGHT OFF GUARD BY BETTING THE WRONG WAY TRADERS DON'T WANT TO GET INVOLVED IN THE YEN BECAUSE SOME ANNOUNCEMENT COULD BE MADE AND THE DOLLAR WILL MOVE UP OR DOWN TWO YEN IN EITHER DIRECTION MR DALEY SAID BUT OTHER ANALYSTS SAID ANY FAILURE TO GET A TRADE AGREEMENT WOULD BE OFFSET BY STATEMENTS DESIGNED TO HALT OVERLY VOLATILE TRADING THE US SEEMS TO BE PLAYING DOWN THE USE OF CURRENCY AS A MEANS OF RESOLVING THE TRADE IMBALANCE SAID ERIC NICKERSON CHIEF ECONOMIST FOR BANK OF AMERICA IN SAN FRANCISCO AND IF IT IS REITERATED IN AN OFFICIAL WAY THAT WILL TEMPER THE KNEEJERK REACTION TO STRENGTHEN THE YEN THE DOLLAR MEANWHILE FELL AGAINST THE MARK AFTER TRADERS TOOK PROFITS AND REVERSED A WEEKLONG CLIMB WHEN THE DOLLAR FAILED TO BREAK PAST RESISTANCE AT 17650 MARKS TRADERS TESTED THE DOWNSIDE SAID CHARLES COSSENTINO VICE PRESIDENT OF DEUTSCHE GENOSSENSCHAFTSBANK IN NEW YORK HE SAID THE MARK ALSO WAS BOOSTED BY COMMENTS BY HANSJUERGEN KRUPP A MEMBER OF THE BUNDESBANK'S POLICYMAKING PANEL WHO SAID THE GERMAN CENTRAL BANK WOULDN'T PROVOKE AN OVERSHOOTING OF THE DOLLAR AGAINST THE MARK 9402110089 940211 HOUSE SENATE VOTE TO EXTEND DEADLINE ON S&L FRAUD SUITS WASHINGTON THE HOUSE JOINED THE SENATE IN VOTING TO EXTEND THE DEADLINE FOR FRAUD SUITS AGAINST FAILED SAVINGS AND LOANS INCLUDING MADISON GUARANTY THE ARKANSAS THRIFT LINKED TO THE WHITEWATER CASE INVOLVING PRESIDENT CLINTON HOUSE MEMBERS VOTED 3901 TO EXTEND UNTIL DEC 31 1995 THE STATUTE OF LIMITATIONS FOR THE RESOLUTION TRUST CORP TO PURSUE CIVIL ACTIONS AGAINST THRIFTS IT CONCLUDES WERE MANAGED FRAUDULENTLY WITHOUT THE EXTENSION THE RTC'S AUTHORITY TO PURSUE CIVIL ACTIONS AGAINST MADISON WOULD EXPIRE FEB 28 RECENTLY APPOINTED SPECIAL COUNSEL ROBERT FISKE IS LOOKING INTO TIES BETWEEN MADISON AND WHITEWATER DEVELOPMENT CORP IN WHICH MR CLINTON AND HIS WIFE WERE INVESTORS WHEN REPUBLICAN SEN ALFONSE D'AMATO OF NEW YORK PRESSED FOR AN EXTENSION IN THE CASE OF MADISON DEMOCRATIC SENATORS STRUCK A COMPROMISE COVERING ALL FAILED THRIFTS ON WEDNESDAY THE SENATE UNANIMOUSLY APPROVED THE COMPROMISE AS AN AMENDMENT TO AN EMERGENCYSPENDING BILL TO AID LOS ANGELES EARTHQUAKE VICTIMS THE HOUSE YESTERDAY INSTRUCTED ITS NEGOTIATORS TO ACCEPT THE AMENDMENT IN A CONFERENCE COMMITTEE WITH THE SENATE BOTH CHAMBERS ARE EXPECTED TO GIVE FINAL APPROVAL TO THE MEASURE TODAY AND SEND IT TO PRESIDENT CLINTON FOR HIS SIGNATURE 9402110088 940211 TELECOMMUNICATIONS A SPECIAL REPORT THE BASICS I DON'T UNDERSTAND IF THAT'S YOUR ANSWER WHEN ANYONE STARTS TALKING WIRELESS TECHNOLOGY MAYBE THIS GLOSSARY WILL HELP BY JOHN J KELLER WE KNOW WE KNOW YOU WANT TO BE A WIRELESS WARRIOR YOU WANT TO BE PART OF THIS GREAT NEW WORLD BUT YOU HAVE NO IDEA WHAT ANYBODY IS TALKING ABOUT SO HERE'S A GLOSSARY OF TERMS TO HELP YOU GET STARTED ADVANCED MOBILE PHONE SERVICE AMPS THE STANDARD TRANSMISSION SCHEME FOR ANALOG CELLULAR PHONES BASED ON TECHNOLOGY DEVELOPED BY AMERICAN TELEPHONE & TELEGRAPH CO'S BELL LABORATORIES CELLULAR PROVIDERS ARE TRYING TO MOVE TO AN ALLDIGITAL APPROACH FOR CLEANER CALLS BUT AMPS WILL PROBABLY REMAIN THE MOSTUSED METHOD FOR THE NEXT FEW YEARS SEE ANALOG AIRTIME THE TIME A USER SPENDS GABBING ON A CELLULAR PHONE MOST CARRIERS BILL CUSTOMERS BASED ON THE TOTAL MINUTES THEY ARE ON THE AIR EACH MONTH AND CHARGES RUN 25 TO 45 CENTS PER MINUTE DEPENDING ON THE SERVICE SEE PEAK OFFPEAK ALPHANUMERIC A MESSAGE THAT APPEARS ON THE DATA SCREEN OF A PAGER OR CELLULAR PHONE IT CONTAINS LETTERS ALPHAS AND NUMBERS NUMERICS ANALOG THE STANDARD METHOD OF TRANSMITTING A RADIO PHONE CALL THE CALL IS CONVERTED INTO ELECTRICAL IMPULSES THAT TRAVEL IN THE FORM OF RADIO WAVES WHICH ARE ANALOGS OR ANALOGOUS TO THE SOUND WAVES OF THE ORIGINAL VOICE CELL THE BASIC GEOGRAPHIC UNIT THAT GAVE CELLULAR ITS NAME A CELLULAR NETWORK IN A CITY OR COUNTY IS CARVED INTO CELLS EACH OF WHICH IS EQUIPPED WITH A RADIO TRANSMITTER/RECEIVER THESE CELLS VARY IN SIZE DEPENDING UPON TERRAIN AND CAPACITY DEMANDS A COMPUTER AT THE NETWORK'S SWITCHING OFFICE MONITORS EACH CALL HANDING IT OFF TO ANOTHER CELL AND AT ANOTHER FREQUENCY AS NEEDED SEE HANDOFF MICROCELLS CELLULAR DIGITAL PACKET DATA CDPD A NEW METHOD OF TRANSMITTING DATA OVER THE CELLULAR NETWORK IT PLACES THE MESSAGE IN DIGITAL ELECTRONIC ENVELOPES AND SENDS IT AT HIGH SPEED THROUGH UNDERUSED RADIO CHANNELS OR BETWEEN PAUSES IN CELLULARPHONE CONVERSATIONS CDPD WHICH WILL SEND DATA AS MUCH AS EIGHT TIMES FASTER THAN REGULAR CELLULAR DELIVERY IS BEING INTRODUCED IN SOME MAJOR MARKETS THIS YEAR CHANNEL THE WIDTH OF A SPECTRUM BAND MEASURED IN KILOHERTZ TAKEN UP BY A RADIO SIGNAL MOST PHONES USE 30KILOHERTZ CHANNELS SEE HERTZ AND SPECTRUM CODE DIVISION MULTIPLE ACCESS CDMA A TYPE OF DIGITALTRANSMISSION SYSTEM SAID TO OFFER UP TO 20 TIMES MORE CAPACITY THAN CONVENTIONAL ANALOG AND DIGITAL CELLULAR SYSTEMS CDMA SYSTEMS USE A LOWPOWER SIGNAL SPREAD ACROSS A WIDEFREQUENCY BAND THE SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE INSTEAD OF A FREQUENCY TO EACH CALL SIGNAL THIS ALLOWS MORE CALLS TO OCCUPY THE SAME SPACE IN A COMMUNICATIONS CHANNEL AND TO BE SPREAD OVER AN ENTIRE FREQUENCY BAND SEE TIME DIVISION MULTIPLE ACCESS DIGITAL THE TRANSMISSION METHOD FOR SENDING VOICE OR INFORMATION USING THE BINARY CODE ONES AND ZEROS OF COMPUTER LANGUAGE THIS IS ACCOMPLISHED BY TRANSMITTING ONOFF ELECTRICAL PULSES DUALMODE PHONES CELLULAR PHONES THAT CAN OPERATE IN EITHER AN ANALOG OR DIGITAL MODE ELECTRONIC SERIAL NUMBER ESN EACH CELLULAR PHONE HAS A UNIQUE ESN PROGRAMMED INTO IT FACILITATING BILLING THE ESN IS AUTOMATICALLY TRANSMITTED AHEAD OF A CALL TO THE CELLULAR TOWER STATION THE MOBILE TELEPHONE SWITCHING OFFICE THEN VALIDATES THE ESN AND PUTS THROUGH THE CALL SEE MOBILE TELEPHONE SWITCHING OFFICE FREQUENCY REUSE THE ABILITY TO USE THE SAME FREQUENCIES REPEATEDLY ACROSS THE DIFFERENT CELLS OF A CELLULAR SYSTEM THEREBY INCREASING CALLHANDLING CAPACITY DESPITE A LIMITED NUMBER OF CHANNELS THIS IS MADE POSSIBLE BY THE BASIC CELLULAR SETUP IN WHICH EACH CELL USES THE RADIO FREQUENCIES WITHIN ITS BOUNDARIES ALLOWING THE SAME FREQUENCIES TO BE REUSED WITH LITTLE OR NO INTERFERENCE FROM OTHER NEARBY CELLS HANDOFF THE PROCESS BY WHICH A SWITCHING OFFICE PASSES A CELLULAR CONVERSATION FROM ONE RADIO FREQUENCY IN ONE CELL TO ANOTHER FREQUENCY IN ANOTHER CELL THIS HAPPENS SO QUICKLY THE ROVING USER DOESN'T NOTICE ITAT LEAST WHEN IT WORKS HANDSFREE A SAFETY FEATURE NOW INCLUDED WITH MOST MOBILE PHONES BY USING A MICROPHONE IN THE CAR VISOR DRIVERS TURN THEIR CELLULAR PHONES INTO SPEAKERPHONES AND DON'T HAVE TO LIFT OR HOLD THE HANDSET TO THEIR EAR SEE VOICEACTIVATED HERTZ CYCLES PER SECOND THE INTERNATIONAL MEASURE OF FREQUENCY WHEN USED IN RELATION TO THE RADIO SPECTRUM HERTZ IS GENERALLY PRECEDED BY PREFIXES AS IN KILOHERTZ THOUSANDS OF CYCLES PER SECOND AND MEGAHERTZ MILLIONS OF CYCLES SEE SPECTRUM HORN ALERT AN OPTIONAL FEATURE THAT AUTOMATICALLY BLOWS THE CAR'S HORN AS A SUBSTITUTE FOR THE PHONE'S REGULAR RINGER IF A CALL COMES IN IT LETS THE RECIPIENT OF A PHONE CALL BE ALERTED WHEN STANDING OUTSIDE THE CAR MESSAGE ALERT THIS FEATURE ALSO KNOWN AS THE CALLINABSENCE INDICATOR SIGNALS USUALLY WITH A LIGHT WHEN A CALL HAS COME IN THIS IS PARTICULARLY IMPORTANT IF THE CELLULAR SUBSCRIBER HAS VOICE MAIL METROPOLITAN STATISTICAL AREAS MSAS THE 306 LARGEST URBAN POPULATION MARKETS AS DEFINED BY THE US GOVERNMENT EACH HAS TWO LICENSED CELLULARSERVICE OPERATORS MICROCELLS UNITS SMALLER THAN CELLS BY WHICH FUTURE PERSONAL COMMUNICATIONS SERVICES NETWORKS WILL BE DIVIDED PCS MICROCELLULAR NETWORKS WILL EMPLOY THOUSANDS OF TINY RADIO TRANSCEIVERS IN MYRIAD MICROCELLS SEE PERSONAL COMMUNICATIONS SERVICES MOBILE PHONE A CELLULAR PHONE THAT IS BASED IN A CAR TRUCK OR VAN THREE TYPES ARE SOLDMOBILE TRANSPORTABLE AND PORTABLE A MOBILE UNIT IS ATTACHED TO THE VEHICLE DRAWS ITS POWER FROM THE VEHICLE'S BATTERY AND HAS AN EXTERNAL ANTENNA A PORTABLE IS A ONEPIECE SELFCONTAINED CELLULAR TELEPHONE WITH THE TRANSCEIVER INSIDE THE LATEST PHONES WEIGH AS LITTLE AS SIX OUNCES AND CAN BE FOLDED UP AND CARRIED IN A SUIT POCKET OR PURSE A TRANSPORTABLE IS A CELLULAR PHONE THAT CAN BE DETACHED AND CARRIED OUTSIDE THE VEHICLE AND HAS ITS OWN BATTERY PACK WHILE THE ENTIRE UNIT CARRIES THE SAME HIGHPOWERED TRANSMITTER AS CARMOUNTED CELLULAR UNITS ITS SPECIAL CARRYING CASE ISN'T AS SMALL OR AS PORTABLE AS POCKETSIZE PHONES MOBILE TELEPHONE SWITCHING OFFICE MTSO THE CENTRAL COMPUTERIZED SWITCH THAT CONTROLS THE ENTIRE OPERATIONS OF A CELLULAR SYSTEM MONITORING ALL CELLULAR CALLS TRACKING THE LOCATION OF ALL CELLULAREQUIPPED VEHICLES TRAVELING IN THE SYSTEM ARRANGING HANDOFFS AND BILLING NOANSWER TRANSFER A SERVICE THAT AUTOMATICALLY TRANSFERS AN INCOMING CELLULAR CALL TO ANOTHER PHONE NUMBER IF THE CELLULAR SUBSCRIBER IS UNABLE TO ANSWER NONWIRELINE A CELLULARPHONE CARRIER THAT'S ONE OF TWO IN ANY MARKET AND INDEPENDENT OF THE REGULAR LOCAL PHONE SERVICE CUSTOMERS WHO USE THE NONWIRELINE CELLULAR CARRIER OPERATE ON THE CELLULAR NETWORK'S ABAND SEE WIRELINE NUMBER ASSIGNMENT MODULE NAM THE CELLULAR PHONE'S ELECTRONIC MEMORY AND WHERE IT STORES ITS TELEPHONE NUMBER PHONES THAT HAVE DUAL OR MULTINAM FEATURES OFFER USERS THE OPTION OF USING THEIR PHONE IN SEVERAL DIFFERENT MARKETS BY REGISTERING WITH A LOCAL NUMBER IN EACH LOCATION OFFPEAK THE PERIOD DURING WHICH CARRIERS OFFER REDUCED AIRTIME FEES USUALLY AFTER THE CLOSE OF A BUSINESS DAY SEE PEAK PEAK HIGHESTUSAGE PERIOD OF THE BUSINESS DAY WHEN A CELLULAR SYSTEM CARRIES THE MOST CALLING TRAFFIC AND WHEN USERS PAY THROUGH THE NOSE FOR IT PERSONAL COMMUNICATIONS SERVICES PCS DIGITAL WIRELESS SERVICES THAT WILL LET USERS MAKE CALLS FROM LIGHTWEIGHT POCKET PHONES OR SEND DATA MESSAGES FROM THE TINY COMMUNICATORS CALLED PERSONAL DIGITAL ASSISTANTS EXPECTED TO BECOME WIDELY AVAILABLE IN THREE TO FIVE YEARS PCS SYSTEMS WILL USE MICROCELLS AND OPERATE AT HIGHER FREQUENCIES AND IN A BROADER SLICE OF THE SPECTRUM THAN CELLULAR SYSTEMS PERSONAL DIGITAL ASSISTANT PDA TOUTED OFTEN BY FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY THE TERM REFERS TO SMALL HANDY DATA COMMUNICATORS THAT CAN SEND THEIR MESSAGES OVER WIRELESS NETWORKS THERE'S JUST ONE CATCH MOST OF THE PDAS INTRODUCED LAST YEAR HAD LITTLE IF ANY WIRELESS CAPABILITY WHEN THEY WERE FIRST DELIVERED POP A TERM FOR THE POPULATION IN THE AREA SERVED BY A CARRIER AN AREA WITH A MILLION PEOPLE IS SAID TO HAVE ONE MILLION POPS A MILLION POTENTIAL CUSTOMERS REPERTORY DIALING ALSO KNOWN AS MEMORY DIALING AND SPEED CALLING THIS ALLOWS A CELLULARPHONE USER TO RECALL ONE TO 99 OR EVEN MORE PHONE NUMBERS FROM A PHONE'S MEMORY WITH THE TOUCH OF A BUTTON OR TWO RESELLER A CELLULARSERVICE DISTRIBUTOR THAT RESERVES CELLULAR TRANSMISSION SPACE AT A DISCOUNTED WHOLESALE PRICE FROM A REGULAR CARRIER IN ITS TERRITORY AND THEN SELLS THE SERVICE AT RETAIL PRICES ROAMING REFERS TO A CELLULARPHONE SUBSCRIBER'S USING A PHONE BEYOND HIS OR HER USUAL SERVICE AREA SUCH AS WHEN DRIVING FROM ONE STATE TO ANOTHER SERVICE PLAN A RATE PLAN THAT A SUBSCRIBER CHOOSES WHEN REQUESTING CELLULAR SERVICE THIS USUALLY CONSISTS OF A BASE RATE FOR CONNECTING TO THE SYSTEM AND A PERMINUTE CHARGE FOR USAGE SPECIALIZED MOBILE RADIO SMR A TWOWAY RADIO DISPATCH SERVICE OPERATING IN THE 800900MEGAHERTZ FREQUENCY BAND FOLLOWING THE RECENT RELAXATION OF FEDERAL RESTRICTIONS SMR OPERATORS WHO HAD PREVIOUSLY HANDLED TAXI DISPATCHES AND THE LIKE HAVE TAKEN AIM AT EXPANDING INTO CELLULARLIKE PHONE SERVICES PUTTING THEM IN DIRECT COMPETITION WITH CELLULARPHONE COMPANIES SPECTRUM THE RANGE OF ELECTROMAGNETIC WAVES WHICH VARY IN LENGTH OR FREQUENCY AND INTENSITY AND ENCOMPASS SOUND NEAR THE LOW END AND LIGHT TOWARD THE HIGH END IN BETWEEN IS THE RADIO SPECTRUM USED IN WIRELESS COMMUNICATIONS SPECTRUM IS ALSO USED TO REFER SIMPLY TO RADIO WAVELENGTHS STANDBY TIME THE AMOUNT OF TIME A FULLY CHARGED CELLULAR PORTABLE OR TRANSPORTABLE PHONE CAN BE LEFT TURNED ON BEFORE THE PHONE'S BATTERIES WILL LOSE POWER THE PHONES MUST BE TURNED ON TO RECEIVE A CALL TALK TIME THE LENGTH OF TIME A PORTABLE OR TRANSPORTABLE PHONE CAN BE USED BEFORE ITS BATTERY MUST BE RECHARGED BATTERY CAPACITY IS USUALLY MEASURED BY SO MANY MINUTES OF TALK TIME AND HOURS OF STANDBY TIME TALKING DRAWS ADDITIONAL POWER FROM THE BATTERY BECAUSE THE PHONE IS TRANSMITTING AND RECEIVING DURING THE CONVERSATION TIME DIVISION MULTIPLE ACCESS TDMA A DIGITALTRANSMISSION SCHEME FOR EXPANDING THE CAPACITY OF CELLULAR SYSTEMS TDMA CAN INCREASE CAPACITY LESS THAN THE CDMA APPROACH BUT THE TECHNOLOGY IS FURTHER ALONG NOW BEING INSTALLED BY MANY CARRIERS TDMA TRANSMISSION EQUIPMENT OFFERS THREE TO SEVEN TIMES THE CAPACITY OF EXISTING CELLULAR ANALOG SYSTEMS CURRENT TDMA SYSTEMS DIVIDE A CHANNEL INTO THREE TIME SLOTS EACH A FRACTION OF A SECOND THIS ALLOWS ONE CHANNEL TO HANDLE THREE CALLS SIMULTANEOUSLY FUTURE SYSTEMS WILL GO TO SEVEN CALLS AT ONCE TUMBLING THE TERM FOR THE USE OF A PHONE THAT HAS BEEN ELECTRONICALLY ALTERED TO STEAL SERVICE BY CONSTANTLY GENERATING NEW ELECTRONIC SERIAL NUMBERS WITH EACH CALL EACH ESN IS TRANSMITTED BEFORE A CALL CAUSING THE CELLULAR CARRIER TO LET THE CALL PASS EVEN THOUGH THE CALL CAN'T BE TRACED TO A BILLABLE ACCOUNT VOICEACTIVATED A FEATURE OF SOME CELLULAR PHONES THAT LETS A USER DIAL BY CALLING OUT NAMES MOM OR NUMBERS TO THE CELLULAR PHONE INSTEAD OF HAVING TO DIAL MANUALLY VOICE MAIL A COMPUTERIZED ANSWERING SERVICE LIKE THOSE IN OFFICES THAT AUTOMATICALLY ANSWERS A CELLULAR CALL IT WILL PLAY A GREETING IN THE USER'S VOICE AND RECORD A MESSAGE AFTER THE MESSAGE IS RETRIEVED IT CAN BE DELETED SAVED OR FORWARDED TO SOMEONE ELSE'S VOICEMAIL SYSTEM WIRELINE A CELLULARPHONE CARRIER OWNED BY THE COMPANY THAT ALSO OPERATES THE REGULAR LOCAL PHONE SERVICE IN A GIVEN MARKET CUSTOMERS WHO USE THE WIRELINE CELLULAR CARRIER OPERATE ON THE CELLULAR NETWORK'S BBAND MR KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110087 940211 BUSINESS BRIEF COOPERS & LYBRAND MINORITYOWNED FIRM WINS JURY AWARD OF 13 MILLION A COUNTY JURY IN DETROIT AWARDED A MINORITYOWNED ACCOUNTING FIRM 13 MILLION PLUS INTEREST IN A SUIT THE FIRM BROUGHT AGAINST COOPERS & LYBRAND CHARGING BREACH OF CONTRACT THE MINORITYOWNED FIRM BARROW ALDRIDGE & CO FILED SUIT AGAINST COOPERS & LYBRAND IN WAYNE COUNTY CIRCUIT COURT IN JUNE 1992 CHARGING THAT THE BIG ACCOUNTING FIRM VIOLATED A 1977 EXCLUSIVE JOINTVENTURE AGREEMENT FOR THE TWO FIRMS TO SHARE GOVERNMENT CONTRACTS FROM THE 1970S TO THE LATE 1980S STATE AND FEDERAL LAW MANDATED THAT BIGGER FIRMS NEEDED MINORITY PARTICIPATION TO OBTAIN GOVERNMENT CONTRACTS ATTORNEYS FOR THE MINORITY FIRM ARGUED THAT COOPERS & LYBRAND SECRETLY STARTED SHARING GOVERNMENT WORK WITH A DIFFERENT MINORITY FIRM IN 1986 AFTER TOM BARROW PRESIDENT AND A SHAREHOLDER OF BARROW ALDRIDGE MADE AN UNSUCCESSFUL BID TO BECOME MAYOR OF DETROIT A SPOKESMAN FOR COOPERS & LYBRAND SAID IT WAS VERY SURPRISED AT THE JURY'S VERDICT AND THAT THE FIRM WOULD APPEAL 9402110086 940211 PEPPERAND SALT HE DOESN'T CARE HE WANTS MY PLASMA AND AS I THINK ONCE MORE I'M BITTEN COUTURIER CUSTOMER SARTORIAL SPENDER 9402110085 940211 BUSINESS BRIEF HOVNANIAN ENTERPRISES INC FISCAL 1994 PROFIT EXPECTED AT BOTTOM OR BELOW FORECAST HOVNANIAN ENTERPRISES INC A HOME BUILDER SAID IT EXPECTS FISCAL 1994 EARNINGS TO BE AT THE BOTTOM OR SLIGHTLY BELOW THE RANGE IT PROJECTED EARLIER DUE TO BAD WEATHER AND A DECISION TO DEFER CERTAIN TAX CREDITS THE RED BANK NJ COMPANY WHICH BUILDS HOMES IN NEW JERSEY NORTH CAROLINA PENNSYLVANIA AND VIRGINIA HAD FORECAST EARNINGS OF 80 CENTS TO 105 A SHARE FOR THE YEAR ENDING FEBRUARY 28 THAT PROJECTION IT SAID WAS BASED ON THE EXPECTED USE OF FEDERAL LOWINCOME HOUSING TAX CREDITS FOR A NEW JERSEY SENIOR RENTAL HOUSING COMMUNITY THE COMPANY SINCE CONCLUDED THAT REGULATIONS REQUIRE THE CREDITS TO BE APPLIED OVER THE COMING 10 MONTHS THE EFFECT OF THE CHANGE IS A 15 CENTS PERSHARE REDUCTION IN NET INCOME THE COMPANY ALSO SAID SEVERE WINTER WEATHER IN THE EAST SLOWED FOURTHQUARTER DELIVERIES AND INCREASED BUILDING COSTS 9402110084 940211 TELECOMMUNICATIONS A SPECIAL REPORT ESSAY LEAVE ME ALONE I DON'T WANT TO BE REACHABLE ANYTIME ANYPLACE BUT HERE'S MY NUMBER JUST IN CASE BY DENNIS KNEALE IT CAME TO ME VIA FEDERAL EXPRESS IN A SLICK BLACK PACKAGE THAT LOOKED MORE LIKE AN EXOTIC GIFT FROM SHARPER IMAGE THAN WHAT IT WAS A PHONE BUT THIS WAS NO ORDINARY PHONE IT WAS THE MOTOROLA MICROTAC ULTRA LITE CLASSIC GOLD EDITION THE ULTIMATE CELLULAR PHONE GUARANTEED TO KEEP ME TAPPED IN AND IN TOUCH ANYTIME AND ANYWHERE AS THICK AS A PACK OF CIGARETTES AND MAYBE AN INCH TALLER THIS 700 BABY BOASTS 120 MEMORY SLOTS NINE ONETOUCH TURBO DIAL LOCATIONS AND NOT ONE BUT TWO USER MANUALS SO BEGAN MY RELUCTANT ENTRY INTO THE AGE OF WIRELESS THIS SLEEK LITTLE STAR TREK COMMUNICATOR IS MERELY THE CRUDE PRELUDE TO A MUCHHYPED FUTURE ONLY A FEW YEARS AWAY THE MANUFACTURERS OF THIS GADGETRY ARE COMING ON TO US WITH THE IMAGERY OF TOMORROW FAXES AT THE BEACH CALLS FROM THE FLOOR OF THE GRAND CANYON COMPACT FLIPDOWN COMPUTERS ON EVERY SEAT BACK OF EVERY COMMERCIAL FLIGHT ABLE TO ZAP FILES AND MISSIVES TO THOSE WAITING BELOW JUST LET ME TAN BUT IN THIS HIGHTECH HELLBENTFORLEATHER RUSH TO LINK UP AND UNWIRE THE INDUSTRY SEEMS TO HAVE OVERLOOKED THOSE OF US WHO JUST WANT TO BE LEFT ALONE I DON'T WANT TO GET A FAX AT THE BEACH THANK YOU SUNSCREEN AND PULP FICTION WILL BE FINE SHOULD I EVER EXPLORE THE WONDERS OF THE GRAND CANYON ONLY TO FIND YOU REACHING INTO YOUR BACKPACK TO ANSWER THE CHIRP OF YOUR ULTRA LITE PLEASE PRAY THAT I'M NOT CARRYING A HANDGUN AS FOR A FLIPDOWN COMPUTER IN EVERY SEATBACK TRAY PERISH THE THOUGHT THAT A PASSENGER MIGHT PREFER TO TAKE A LITTLE BREAK AND READ A GOOD BOOK WE WIRELINE LUDDITES MILLIONS OF US ALREADY GRIMACE EVERY TIME WE SEE SOME SELFIMPORTANT PEDESTRIAN PACING DOWN THE STREET WHILE BLABBING INTO HIS OR HER CELLULAR WE BURN TO INTERRUPT AND ASK JUST WHAT IS SO DAMNED IMPORTANT LIKE YOU CAN'T WAIT TO GET BACK TO THE OFFICE WHY WOULD ANYONE WANT TO BE IN TOUCH ANYWHERE AND ANYTIME ALL THE TIME OUR JOBS JUST AREN'T CRITICAL ENOUGH OF SUCH LIFEANDDEATH SIGNIFICANCE AS TO DEMAND IT SOMETHING MUST BE SAID FOR THE IMPORTANCE OF LOAFING MAYBE A LITTLE DOWNTIME IS ACTUALLY A BOON TO PRODUCTIVITY AN EFFICIENT WAY OF LETTING OUR ENGINES COOL SO THEY CAN RUN BETTER WHEN IT'S TIME TO TURN ON AGAIN IN THIS INCESSANT CLATTER OF CHATTER AND FAXING AND BEEPING WHERE IS THE TIME FOR THINKING OR DOODLING A CERTAIN SELFIMPORTANCE AND VANITY AND A SLIVER OF INSECURITY ARE AT THE HEART OF THIS UNWIRED DESIRE IT IS AS IF THE COMPANY WILL FALL APART WITHOUT US IT WON'T OR THE BOSS WILL REALIZE WE WEREN'T ALL THAT NECESSARY AFTER ALL HE OR SHE HAS ALREADY FIGURED THAT OUT OR IN THE CHARLIE BROWN THEOREM THE FEAR ARISES THAT IF YOU DON'T GO WIRELESS EVERYONE ELSE WILL BE GABBING ON THEIR CELLULAR PHONES ABOUT YOU YET AND THIS IS THE SCARY PART SOME OF THE RESISTERS AMONG US WRESTLE DAILY WITH A DEEPSEATED URGE TO GIVE THESE GIZMOS A TRY WE HATE WIRELESS AND YET WE FIND OURSELVES STARTING TO WANT ONE THAT SUBCONSCIOUS CLASH PLAYS OUT AT LUNCH WITH TWO FRIENDS DINING AT SFUZZI IN THE AIRY WINTER GARDEN OF NEW YORK'S WORLD FINANCIAL CENTER THE THREE OF US FIX HARD ON A CHUBBY WISPYHAIRED GUY WAITING TO BE SEATED HE IS TALKING INTENTLY INTO A BULKY CELLPHONE AN ANCIENT MODEL I HATE PEOPLE WHO USE CELLULAR PHONES ONE PAL VENTS MOST PEOPLE IN AMERICA HATE PEOPLE WHO USE CELLULAR PHONES YEAH RESPONDS THE OTHER BUT I SECRETLY WANT ONE AND THERE YOU HAVE IT WE WORRY ABOUT GETTING LEFT BEHIND THIS VENTURE INTO THE ETHER THREATENS TO TURN INTO A REPLAY OF DISCO IN THE 1970S EVERYONE IT SEEMED KNEW HOW TO DO THE HUSTLE EXCEPT ME EVEN AFTER I BOUGHT A PAIR OF PLATFORM SHOES NEVER DID CATCH UP AND SO WE HAVE STARTED PORING OVER ALL THOSE NEWSPAPER ADS BLARING PRICES BELOW 75 FOR THE LATEST POCKET PHONE ON TRIPS TO THE SUPERMARKET TO PICK UP A CARTON OF MILK WE WISH WE COULD MAKE AN INSTANT CALL BACK HOME TO ASK WHAT ELSE WE WERE SUPPOSED TO GET WIRELESS TEMPTATIONS ABOUND ALL AROUND US AND THE LURE WILL GROW AS THE NEXT GENERATION OF ACRONYMIC SIRENS PCS PERSONAL COMMUNICATIONS SERVICES AND PDAS PERSONAL DIGITAL ASSISTANTS TAKES HOLD THE OTHER DAY IN NEW YORK I ENTERED A TAXICAB AND WAS STARTLED TO SEE A CREDITCARD CELLULAR PHONE WITH AN LCD SCREEN THAT INSTRUCTED PICK UP NOW I'M TRYING OUT MY ULTRA LITE ON LOAN FROM MOTOROLA INC I CARRY IT EVERYWHERE JUST ITCHING TO HAVE SOMEONE ANYONE CALL ME ON IT THIS IS AFTER ALL RESEARCH IT'S ALSO EXPENSIVE MY FIRST BILL RUNS 13140 FOR 30 MINUTES OF CONVERSATION AND STARTUP COSTS SOON I REALIZE IF I RELENT AND EMBRACE THIS UNTETHERED TECHNOLOGY A WHOLE NEW SET OF FEARS COMES INTO PLAY WHAT IF NO ONE WANTS TO CALL ME OR NEEDS TO CALL ME WHAT IF I JUST DON'T RATE IN THE RANKS OF THE ANYTIMEACCESSED THE DIRTY LITTLE SECRET OF THE POCKETPHONE CROWD YOU SEE IS THE EXISTENCE OF AN UNWRITTEN PECKING ORDER THE ELITE MEMBERS OF THE CELLULAR SECT NEVER LEAVE THEIR PHONES ON FOR GOODNESS' SAKE THEN ANYONE WOULD BE ABLE TO CALL THEM THEY CARRY THEIR PHONES BLISSFULLY TURNED OFF SO THEY CAN REACH ANYONE THEY LIKE WHENEVER THE FANCY STRIKES THEM THE LOW END OF THE PECKING ORDER TAKES THE OPPOSITE TACK THEIR PHONES ARE ALWAYS ON SO THE BOSS CAN REACH THEM SO IF THE WIRELESS WORLD EVOLVES IN THE WAY MUCH OF THE REST OF LIFE DOES THIS WILL GET TO BE A LITTLE LIKE HIGH SCHOOL WHEN THE COOL KIDS WHO SMOKED MARLBOROS ON THE FRONT STEPS LEFT THE REST OF US FEELING INADEQUATE AND LONGING TO SIT NEXT TO THEM PERHAPS YOU'VE ALREADY HAD A CELLULAR SNUB MY PREVIOUS BOSS WAS A FERVENT WIRELESS CONVERT SHE USED HER FLIPSET PHONE WHENEVER SHE GOT THE CHANCE EVERY MORNING SHE WOULD PLACE A SCRATCHY HUMMING CALL TO ME IN THE OFFICE AS SHE SPED DOWN THE HIGHWAY IN A CAB ON HER WAY TO WORK USUALLY IT WAS TO LET ME KNOW SHE'D BE ARRIVING IN 10 MINUTES FINE THIS DIVISION BETWEEN THE ACCESSORS AND THE ACCESSED WILL GROW AS WIRELESS ADVANCES IN A LAB AT BELLCORE THE RESEARCH ARM OF THE REGIONAL BELL COMPANIES EARNEST ENGINEERS IN NECKTIES ARE EXPERIMENTING WITH A PHONE SYSTEM THAT TRACKS YOUR EVERY MOVE IT KNOWS WHEN YOU'RE AT HOME IN THE MORNING SO IT CAN SEND CALLS TO THE PHONE IN YOUR LIVING ROOM WHEN YOU CLIMB INTO YOUR CAR THE SYSTEM KNOWS TO FORWARD CALLS TO YOUR CAR PHONE WHEN YOU PARK AND GET OUT THE SYSTEM SENSES IT AND ROUTES CALLS TO YOUR BREAST POCKET WHEN YOU WALK INTO WORK THE SYSTEM SENDS CALLS TO WHERE THEY SHOULD HAVE BEEN GOING IN THE FIRST PLACE YOUR OFFICE YIKES IT IS KIND OF COOL THAT THE TECHNOLOGY EXISTS TO DO ALL THIS ALL TOO OFTEN IN HIGHTECH HOWEVER VENDORS THRUST NEW POWERS UPON US SIMPLY BECAUSE THEY CAN WITHOUT FIRST FIGURING OUT WHETHER ANYONE WANTS TO OR NEEDS TO THE SOLDIERS IN THIS WIRELESS REVOLUTION ARE OBLIVIOUS TO SUCH CRANKY OBSERVATIONS A REPORTER FRIEND IN LOS ANGELES DEFENDS HER CELLULAR PHONE IT'S A TOOL YOU CAN'T BE A HARDNEWS REPORTER OUT HERE AND NOT HAVE ONE I DON'T USE IT TO MAKE NAIL APPOINTMENTS AT MOTOROLA IN SCHAUMBURG ILL SENIOR VICE PRESIDENT MERLE L GILMORE IS A PRIDEFUL WIRELESS WARRIOR HIS FAMILY USES FOUR CELLULAR PHONES HE TAKES WALKIETALKIES ON SKI TRIPS AND HIS BELT HOLDS A NIFTY ALPHANUMERIC PAGER THAT IS ALMOST NEVER OFF WHEN I'M OUT AND DON'T HAVE IT WITH ME IT'S LIKE I COULD MISS AN OPPORTUNITY HE SAYS PROUDLY FINGERING HIS BEEPER A LOT OF PEOPLE THOUGHT WIRELESS IS A CONTROLLING DEVICE IT REALLY IS A FREEDOM DEVICE YUCK AND YET THERE IS SOMETHING COMPELLING ABOUT MY LITTLE ULTRA LITE AS IT RECLINES IN ITS CHARGER LIKE A BABY IN A CRADLE I PICK IT UP AND FLIP OPEN THE BOTTOM PRESS THE PWR BUTTON AND THE KEYPAD IS BATHED IN GREEN LIGHT AND EMITS AN ELECTRONIC BURP THAT IS KIND OF CUTE ACTUALLY DIAL UP MY OLD OFFICE PHONE RIGHT NEXT TO ME THE PHONE RINGS AND I CARRY ON A CONVERSATION FROM ONE EAR TO THE OTHER AND THEN IT OCCURS TO ME THERE IS SO MUCH I HAVEN'T YET TRIED THE 90PAGE MANUAL HOLDS MANY MYSTERIES HOW TO RECALL THE LAST 10 NUMBERS DIALED OR STORE A 32DIGIT NUMBER UNDER BOB AND CALL HIM WITH THE TOUCH OF ONE BUTTON YOU CAN EVEN ARM THIS PHONE WITH AN ALARM IF SOMEONE TRIES TO USE IT WITHOUT ENTERING YOUR SECRET CODE IT WILL AUTOMATICALLY DIAL YOUR REGULAR NUMBER TO LET YOU KNOW IT HAS BEEN STOLEN ALAS MOTOROLA SAYS THE TRIAL IS OVER THE ULTRA LITE MUST BE RETURNED BUT I'M PUSHING TO KEEP IT LONGER IT'S NOT AS IF I LIKE IT OR ANYTHING I JUST NEED TO DO SOME MORE RESEARCH CALL ME WHENEVER WE'LL TALK MR KNEALE IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110083 940211 WHO'S NEWS GEORGIAPACIFIC CORP GEORGIAPACIFIC CORP ATLANTA MAURICE W KRING WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENTCONTAINERBOARD AND PACKAGING OF THIS FORESTPRODUCTS CONCERN MR KRING 57 YEARS OLD WILL HAVE RESPONSIBILITY FOR THE COMPANY'S 39 PACKAGING PLANTS AND FOUR LINERBOARD AND CORRUGATED MEDIUM MILLS HE HAD BEEN GROUP VICE PRESIDENT OF CONTAINERBOARD AND PACKAGING 9402110082 940211 WHO'S NEWS USG CORP USG CORP CHICAGO JUDITH A SPRIESER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SARA LEE CORP'S SARA LEE BAKERY NORTH AMERICA UNIT AND WILLIAM C FOOTE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF BUILDING PRODUCTS WERE NAMED DIRECTORS OF THE COMPANY FILLING VACANCIES ON THE BOARD 9402110081 940211 LAW EXATTORNEY CONVICTED IN INSIDETRADING CASE TIED TO PILLSBURY DEAL MINNEAPOLIS A FEDERAL JURY CONVICTED DISBARRED ATTORNEY JAMES H O'HAGAN ON CHARGES THAT HE ILLEGALLY PROFITED FROM INSIDE INFORMATION ABOUT GRAND METROPOLITAN PLC'S PLANS TO ACQUIRE PILLSBURY CO IN 1988 MR O'HAGAN NOW 57 YEARS OLD WAS AT THE TIME SERVING AS A PARTNER IN THE PROMINENT LAW FIRM OF DORSEY & WHITNEY FEDERAL PROSECUTORS CHARGED THAT HE ACQUIRED NONPUBLIC INFORMATION WHEN THE LAW FIRM WAS ACTING AS LOCAL COUNSEL ON BEHALF OF GRAND MET THE ATTORNEY BOUGHT A SUBSTANTIAL QUANTITY OF PILLSBURY SHARES MONTHS IN ADVANCE OF THE BRITISH COMPANY'S BUYOUT BID AND REAPED 43 MILLION IN PROFIT AFTER THE BID BECAME PUBLIC THE JURY DELIBERATED FOR MORE THAN TWO DAYS THE US ATTORNEY'S OFFICE SAID BEFORE FINDING MR O'HAGAN GUILTY ON A TOTAL OF 57 COUNTS OF SECURITIES FRAUD MAIL FRAUD AND MONEY LAUNDERING MR O'HAGAN CONTENDED THAT HE NEVER POSSESSED ANY INSIDE INFORMATION AND THAT THE PILLSBURY STOCK PURCHASES WERE AN INVESTMENT BASED ON WIDESPREAD SPECULATION AT THE TIME THAT PILLSBURY WOULD COME INTO PLAY IN THE LATE1980S TAKEOVER BINGE NEITHER HE NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT LATE YESTERDAY DORSEY & WHITNEY HASN'T BEEN LINKED TO ANY WRONGDOING IN THE PILLSBURY MATTER MR O'HAGAN PROSECUTORS CONTEND USED A PORTION OF THE PROFITS FROM THE SALE OF THE PILLSBURY SECURITIES TO CONCEAL HIS PREVIOUS EMBEZZLEMENT OF AN ESTIMATED 1 MILLION FROM CLIENTTRUST FUNDS IN 1990 MR O'HAGAN WAS CONVICTED IN STATE COURT ON THEFT CHARGES AND DISBARRED FOR TAKING MONEY FROM TRUST ACCOUNTS THOSE FUNDS WERE REPAID 9402110080 940211 BUSINESS BRIEF GROUND ROUND RESTAURANTS INC CONCERN WITHDRAWS OFFERING DUE TO DROP IN STOCK PRICE GROUND ROUND RESTAURANTS INC CITING A RECENT DROP IN ITS STOCK PRICE SAID IT WITHDREW ITS PROPOSED PUBLIC OFFERING FOR 35 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES AS A RESULT THE BOSTON RESTAURANT OPERATOR SAID IT WILL WRITE OFF EXPENSES OF ABOUT 650000 DURING ITS FISCAL SECOND QUARTER ENDING APRIL 3 IN LAST YEAR'S SECOND QUARTER THE COMPANY HAD NET INCOME OF 12 MILLION OR 11 CENTS A SHARE ON SALES OF 564 MILLION GROUND ROUND SAID IT KNEW OF NO CORPORATE DEVELOPMENTS TO EXPLAIN THE DROP IN ITS SHARE PRICE IN THE PAST TWO WEEKS TO 650 FROM 7875 ON THE NASDAQ STOCK MARKET YESTERDAY GROUND ROUND SHARES ROSE 125 CENTS TO 675 THE COMPANY SAID THE MOVE WON'T CHANGE ITS SCHEDULE FOR RESTAURANT OPENINGS THROUGH 1995 9402110079 940211 THE AMERICAS MEXICAN REBELS SHOW THEIR GUTS WITH INDIAN BLOOD BY DAVID ASMAN LAS MARGARITAS BEFORE THE WORLD BECOMES TOTALLY ENAMORED OF SUBCOMANDANTE MARCOS THE MAIN SPOKESMAN OF THE ZAPATISTA REBELS FIGHTING IN THE SOUTHERN STATE OF CHIAPAS ATTENTION SHOULD BE FOCUSED FOR JUST A MOMENT ON THE INDIAN AND MESTIZO PEASANTS WHO HAVE BEEN DISPLACED BY THE FIGHTING THEY DO NOT SHARE MARCOS'S EUROPEAN GOOD LOOKS NOR ARE THEY AS ELOQUENT OR AMUSING AS THE WELLEDUCATED SUBCOMANDANTE BUT THEIR STORIES ARE MORE POIGNANT THE ZAPATISTAS CAME IN AND TOOK ALL OUR FOOD AND KILLED OUR ANIMALS THEY'RE STILL LIVING IN OUR HOUSES SO WE HAVE TO CAMP HERE SAYS JESUS MORALES GESTURING TO THE CIVIC AUDITORIUM WHICH HAS BEEN TURNED INTO LIVING QUARTERS FOR ABOUT 300 DISPLACED FAMILIES THE AUDITORIUM IS RUNNING OUT OF POTABLE WATER MEDICAL SERVICES NOT TO MENTION THE THREE BATHROOMS ARE STRETCHED TO THE LIMIT AND MORE REFUGEES ARE ARRIVING DAILY FROM THE SURROUNDING FORESTS MR MORALES IS NO FAN OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY THE PRI WHICH HE SAYS HAS STOLEN EVERY ELECTION HE'S VOTED IN BUT IT IS THE ZAPATISTAS AGAINST WHOM HE RAGES THE LOUDEST LIFE WAS TOUGH ENOUGH FOR US HERE BEFORE NOW IT'S MUCH WORSE HE SAYS MOST REBELS APPEAR TO BE LOCAL PEASANTS WHO JOINED OUT OF FRUSTRATION FROM WORSENING REPRESSION BY CORRUPT LOCAL LEADERS KNOWN AS CACIQUES HOWEVER THE ZAPATISTA LEADERS AND THEIR SHADY FINANCIAL AND STRATEGIC SUPPORT BASE INCLUDE A MULTITUDE OF INTERNATIONAL POLITICAL SOCIAL AND RELIGIOUS FORCES WHOSE CONCERNS AND INTERESTS EXTEND BEYOND AND SOMETIMES CONFLICT WITH THOSE OF CHIAPAS'S PEASANTS THE PRIMARY THORN IN THE BODY POLITIC HERE IS THE DESTRUCTIVE ROLE OF CACIQUES AND THEIR HERETOFORE COZY RELATIONSHIP WITH THE RULING PARTY CACIQUES ACT AS THE EYES EARS AND VOTEGETTERS FOR THE PRI IN RETURN THEY ARE GRANTED OFFICIAL RECOGNITION AS A COMMUNITY'S SOCIAL ECONOMIC AND JUDICIAL AUTHORITY IN SOME CASES THEY ARE POWERFUL LANDOWNERS OF EUROPEAN DESCENT WHO HOLD OFFICIAL IF UNCONTESTED PUBLIC OFFICES IN OTHER CASES THEY ARE SPANISHSPEAKING INDIANS WHO ASSUME LESS FORMAL TITLES SUCH AS VILLAGE ELDER AND THEY CONTROL PRIAPPROVED CONCESSIONS VITAL TO INDIAN COMMUNITIES SUCH AS FOOD AND LIQUOR STORES TRANSPORTATION SERVICES AND HOUSING IN ALL CASES THE CACIQUES ALLOW NO DISSENT AND THEIR WORD SUPERSEDES ESTABLISHED LAWS THOSE WHO PREFER TO OPERATE OUTSIDE THE CACIQUES' MONOPOLY CONCESSIONS ARE BANISHED FROM THEIR COMMUNITIES AND BEATEN OR KILLED IF THEY TRY TO RETURN KILLINGS ARE USED ONLY WHEN CACIQUES FEEL PEOPLE HAVE GROWN ACCUSTOMED TO BEATINGS SAYS ABDIAS TOVILLA JAIME A SAN CRISTOBAL LAWYER WHO WORKS ON BEHALF OF BANISHED INDIANS HE DISPLAYS A PHOTOGRAPH OF THE BADLY MANGLED BODY OF VICENTE MENDEZ VELASCO A MITONTIC INDIAN BEATEN TO DEATH IN APRIL AFTER RETURNING TO A COMMUNITY FROM WHICH HE HAD BEEN BANISHED ANOTHER PHOTO SHOWS HIS BEREFT WIFE AND SIX CHILDREN WITH SUCH FERTILE GROUND FOR REVOLT ZAPATISTA MILITANTS HAD LITTLE TROUBLE FINDING RECRUITS MANY OF THE REFUGEES IN LAS MARGARITAS CLAIM THAT ZAPATISTA LEADERS ARE EITHER NONINDIAN MEXICANS OR CENTRAL AMERICANS WE HEARD GUATEMALTECANS AND SALVADORANEANS GIVING ORDERS SAID SEVERAL PEASANT REFUGEES ON THE CLOUDCOVERED ROAD FROM LAS MARGARITAS TO NEARBY COMITAN OF COURSE RUMORS SPREAD QUICKLY IN SMALL TOWNS UNDER DURESS NEVERTHELESS AMONG THE CLOTHING CAPTURED BY THE MILITARY WAS A SWEATSHIRT FROM A GUATEMALAN MILITARY POST MARKED GUATEMALA ZONA MILITAR NO 23 PETEN CAPTURED DOCUMENTS WHICH DATE FROM 1982 TO THE PRESENT ARE RIFE WITH REFERENCES TO AND STRATEGY MANUALS FROM OTHER CENTRAL AMERICAN GUERRILLA GROUPS WHILE MARCOS AND HIS TOP COMMANDOS WERE WELL TRAINED IN MILITARY STRATEGY AND HAVE BEEN PHOTOGRAPHED CARRYING SOPHISTICATED WEAPONS AND COMMUNICATIONS EQUIPMENT MOST OF THE PEASANT FIGHTERS WERE FAR LESS PREPARED IN SOME CASES THEY WERE SENT TO THE FRONT LINES CARRYING PHONY WOODEN RIFLES WITH CRUDE SPEARS WIRED TO THE TIPS GEN MIGUEL GODINEZ COMMANDER OF THE MEXICAN ARMED FORCES IN CHIAPAS SAYS THEY WERE TRYING TO BAIT US INTO COMMITTING MASSACRES AGAINST POORLY ARMED PEASANTS TO WIN THE HUMAN RIGHTS BATTLE SOME MASSACRES APPARENTLY DID OCCUR BUT THE MEXICAN ARMY DESERVES NO MORE CONTEMPT THAN THOSE WHO SENT MEN INTO COMBAT WITH FAKE RIFLES ONE SOURCE OF MORAL IF NOT LOGISTICAL SUPPORT FOR THE GUERRILLAS COMES FROM THE ROMAN CATHOLIC ARCHDIOCESE OF SAN CRISTOBAL HEADED BY A NOTED LIBERATION THEOLOGIAN ARCHBISHOP SAMUEL RUIZ NOW THE OFFICIAL MEDIATOR IN NEGOTIATIONS BETWEEN THE REBEL LEADERS AND THE GOVERNMENT BISHOP RUIZ'S FIERY SERMONS OFTEN VEER TOO FAR TO THE LEFT FOR MANY PARISHIONERS THERE'S A BITTER SPLIT IN THE CATHOLIC COMMUNITY BETWEEN HIS SUPPORTERS AND DETRACTORS MANY PEOPLE JUST WANT TO GO TO CHURCH TO REFLECT ON THEIR FAITH WITHOUT A LOT OF POLITICS MIXED IN SAYS A LOCAL DOCTOR WHO PREFERRED NOT TO BE NAMED A CAGEY INTERVIEW SUBJECT BISHOP RUIZ DENIES PREACHING POLITICS FROM THE PULPIT BUT ADDS I OPPOSE THE NEOLIBERAL MODERNIZATION OF THE ECONOMY NOT AS A POLITICAL GESTURE BUT BECAUSE THE CAPITALIST GLOBAL ECONOMY IS DEHUMANIZING ESPECIALLY TO THE INDIANS WHEN ASKED WHETHER ZAPATISTA LEADERS ARE INDIAN OR NOT HE RESPONDS DOES THAT MAKE THEIR CAUSE ANY LESS JUST OF COURSE THE CAUSE OF DEFENDING INDIAN RIGHTS IS PERFECTLY JUST AND SOME GOOD MAY YET COME FROM THE RESOLUTION OF THE CONFLICT AND THE ATTENTION IT HAS FOCUSED ON THE DEPRIVATIONS HERE HOWEVER THE CYNICAL USE OF THE INDIANS AS CANNON FODDER OR EVEN THE INVOCATION OF THEIR PAIN TO NEGOTIATE ON BEHALF OF ANACHRONISTIC IDEOLOGIES SHOULD NOT BE TOLERATED IF THE RULE OF LAW AND NOT THE ARBITRARY WISHES OF CACIQUES AT LAST COMES TO CHIAPAS IT WILL COME AS A PART OF THE SAME MODERNIZATION PROCESS THAT IS INCREASING INDIVIDUAL RIGHTS ALL OVER MEXICO THE INDIANS MAY LOSE SOME OF THEIR COMMUNAL TRADITION AS SAMUEL RUIZ FEARS THEY MAY ALSO DECIDE TO VOTE FOR OPPOSITION PARTIES AS THE PRI FEARS BUT THEIR RIGHTS AS MEXICAN CITIZENS MUST BE PROTECTED ABOVE ALL ELSE NO MATTER WHETHER THEIR CULTURE IS REVERED AS MORE IMPORTANT BY SOME OR REVILED AS LESS IMPORTANT BY OTHERS PRESIDENT CARLOS SALINAS HAS SHOWN BEFORE THAT HE IS CAPABLE OF STRONG EXECUTIVE ACTION TO ENFORCE THE RULE OF LAW JUST WEEKS AFTER BECOMING PRESIDENT IN 1988 HE SENT FEDERAL TROOPS TO ARREST AN INFAMOUS UNION LEADER WHO HAD TURNED HIS PERSONAL MANDATE FROM THE PRI INTO A MAFIA FIEFDOM IT IS TIME FOR SUCH ACTION AGAIN TO LOCK UP MURDEROUS CACIQUES THIS ACTION SHOULD NOT BE PREDICATED ON THE EDICTS OF SUBCOMANDANTE MARCOS BUT ON THE LONG OVERDUE EXERCISE OF JUSTICE MR ASMAN EDITS THE AMERICAS COLUMN 9402110078 940211 NEC IS BURNED FROM PC PRICE WAR LIT BY US IN JAPAN BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE PERSONALCOMPUTER PRICE WAR IGNITED MORE THAN A YEAR AGO BY US COMPANIES IS TAKING A TOLL ON NEC CORP'S HUGE MARKET SHARE AN INFLUENTIAL MARKET RESEARCH FIRM SAID APPLE COMPUTER INC RACKED UP A HUGE GAIN IN SHARE WHILE COMPAQ COMPUTER CORP PERFORMED BETTER THAN ANALYSTS' EXPECTATIONS AND INTERNATIONAL BUSINESS MACHINES CORP PERFORMED WORSE NEC WHICH HAS CONTROLLED NEARLY HALF OF THE JAPANESE PC MARKET FOR ALMOST A DECADE SAW ITS MARKET SHARE FALL TO 49 IN 1993 FROM 52 IN 1992 THE JAPAN UNIT OF INTERNATIONAL DATA CORP SAID THE COMPANY SHIPPED MORE COMPUTERS THAN EVER BEFORE 12 MILLION UNITS ACCORDING TO IDC BUT WAS UNABLE TO KEEP UP WITH 15 GROWTH IN THE OVERALL JAPANESE PC MARKET WE DON'T FORESEE NEC GETTING ANY WORSE THEIR SHIPMENTS WILL STAY ROUGHLY THE SAME SAID DAVID KELLAR AN IDC ANALYST THE MARKET IN A WORD IS GOING TO EXPAND AROUND NEC THAT EXPANSION IS LARGELY DUE TO DEMAND CREATED BY LOWPRICED COMPUTERS FROM COMPAQ IBM AND DELL COMPUTER CORP WHEN THEY CRASHED INTO JAPAN IN LATE 1992 AND EARLY 1993 CAPITALIZING ON THEIR ECONOMIES OF SCALE AND THE COST AND PERFORMANCE ADVANTAGES OF THE WORLDWIDE IBM PC STANDARD THE US FIRMS HOPED TO UNDERCUT NEC'S HIGH PRICES AND ERODE ITS MARKET SHARE THAT STRATEGY APPEARS TO BE WORKING THE REALITY IS THAT NEC'S ARCHITECTURE CAN'T BE COMPETITIVE WITH A WORLDWIDE STANDARD IN THE MIDST OF A SEVERE PRICE WAR MR KELLAR SAID RESULTS FOR THE US COMPANIES HOWEVER HAVE BEEN MIXED IDC SAID THAT COMPAQ SHIPPED 45000 PCS IN 1993 FOR A 2 SHARE OF THE MARKET UP FROM 11000 UNITS AND AN 05 SHARE IN 1992 IDC ATTRIBUTED THAT PERFORMANCE WHICH WAS BETTER THAN THE FIRM EARLIER FORECAST TO COMPAQ'S CONTINUED PRICECUTTING IN THE LATTER PART OF THE YEAR IBM BY CONTRAST SLID TO A 68 SHARE IN 1993 FROM 8 IN 1992 IDC SAID THE MARKET RESEARCH FIRM BLAMED IBM'S DECLINE ON DIFFICULTIES IN SHIPPING ITS LOWPRICED PS/V DESKTOP AND THINKPAD LAPTOP COMPUTERS AND ON A LARGE INVENTORY THAT SKEWED THE COMPANY'S SHIPMENT FIGURES IDC DIDN'T CALCULATE DELL'S PC SHIPMENTS SEPARATELY ONE UNEXPECTED BENEFICIARY OF THE PRICE WAR WAS APPLE WHOSE COMPUTERS HAVE LONG BEEN POPULAR BUT EXPENSIVE IN JAPAN IDC SAID APPLE'S SHARE INCREASED TO 13 IN 1993 FROM 88 IN 1992 MOSTLY BECAUSE AN AGGRESSIVE PRICECUTTING STRATEGY MADE APPLE'S COMPUTERS MORE AFFORDABLE 9402110077 940211 AVERAGE MORTGAGE RATE ROSE TO 730 THIS WEEK A WALL STREET JOURNAL NEWS ROUNDUP THE AVERAGE RATE ON A CONVENTIONAL 30YEAR MORTGAGE JUMPED TO 730 THIS WEEK FOLLOWING THE FEDERAL RESERVE'S DECISION TO RAISE SHORTTERM INTEREST RATES LAST WEEK THE INCREASE UP FROM LAST WEEK'S 708 IS BASED ON A PRELIMINARY SURVEY BY HSH ASSOCIATES A PUBLISHER OF MORTGAGE RATES IN BUTLER NJ THE RATE IS STILL HISTORICALLY LOW AND ANALYSTS DON'T EXPECT ANY RAPID SHORTTERM CHANGES MAJOR LENDERS IMMEDIATELY RAISED THEIR RATES AFTER THE FED'S ANNOUNCEMENT BUT AS THE SHOCK WORE OFF RATES STARTED TO MOVE DOWN AGAIN THIS WEEK TO YESTERDAY'S PRELIMINARY 730 KEITH T GUMBINGER AN ANALYST AT HSH SAID THE FINAL RATE FOR THE WEEK WOULD LIKELY DROP SLIGHTLY LOWER RATES FELL AS LOW AS 683 IN OCTOBER BEFORE CRESTING AT 740 IN NOVEMBER SINCE THEN RATES HAVE BEEN DRIFTING UP AND DOWN UNTIL THIS WEEK'S SPIKE MORTGAGE INTEREST RATES ARE EXPECTED TO REMAIN AT THEIR CURRENT LEVELS FOR THE NEAR TERM SAID FRANK NOTHAFT AN ECONOMIST AT FREDDIE MAC WE DON'T FORESEE ANY FURTHER MOVES BY THE FED TO TIGHTEN MONETARY POLICY 9402110076 940211 BLACK'S FUND SEEKING MORE OF O&Y DEBT BY LARRY M GREENBERG AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL AN INVESTMENT FUND RUN BY LEON BLACK IS ATTEMPTING TO BECOME A BIGGER PLAYER IN THE RESTRUCTURING OF OLYMPIA & YORK'S US OPERATIONS MR BLACK'S FUND APOLLO REAL ESTATE INVESTMENTS HAS OFFERED TO BUY ABOUT 140 MILLION OF DEBT SECURED BY SOME OF OLYMPIA & YORK COS USA'S BEST PROPERTIES INCLUDING NEW YORK'S WORLD FINANCIAL CENTER THE MOVE FOLLOWS THE FUND'S PURCHASE IN NOVEMBER OF MORTGAGE BONDS SECURED BY THREE OTHER BUILDINGS IN NEW YORK FOR ABOUT 160 MILLION IT'S UNCLEAR WHETHER MR BLACK IS ATTEMPTING TO POSITION HIMSELF TO GAIN CONTROL OF O&Y USA OR IS MERELY TRYING TO PROFIT FROM THE RESTRUCTURING OF THE COMPANY'S 5 BILLION OF DEBT IN ANY CASE OBSERVERS SAY THE NEW DEBT HOLDING WOULD ALLOW MR BLACK TO BECOME A THORN IN THE SIDE OF MORESENIOR CREDITORS AS THE COMPANY CONTINUES EFFORTS TO RESTRUCTURE WITHOUT A BANKRUPTCYLAW FILING MR BLACK FORMED THE APOLLO FUND LAST YEAR TO INVEST IN DISTRESSED REAL ESTATE UNLIKE THE NOVEMBER INVESTMENT IN O&Y USA THE PROPOSED NEW DEBT HOLDING WOULDN'T GIVE MR BLACK ANY DIRECT CLAIM ON PROPERTY BUT IT EVENTUALLY COULD ALLOW HIM TO CONVERT THE DEBT INTO AN EQUITY STAKE IN THE ENTIRE COMPANY IF ANYONE WOULD LOOK TO BUY THIS POSITION THEY WOULD BE DOING SO WITH THE INTENT OF INFLUENCING THE OVERALL RESTRUCTURING SAID AN INDIVIDUAL WITH KNOWLEDGE OF O&Y USA'S DEBT IT'S A WAY TO TRY TO PLAY OLYMPIA & YORK US AS OPPOSED TO PLAYING A BUILDING AN APOLLO SPOKESMAN SAID MR BLACK AND HIS CHIEF REALESTATE EXECUTIVE WERE OUT OF THE COUNTRY AND THE FIRM WOULDN'T COMMENT DEBT RESTRUCTURINGS OFTEN ATTRACT VULTURE INVESTORS SUCH AS MR BLACK THE FORMER HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INC MR BLACK IS KNOWN FOR BUYING DEBT OF TROUBLED COMPANIES AND PARLAYING THESE HOLDINGS INTO DOMINANT EQUITY POSITIONS APOLLO HASN'T YET MADE A FORMAL BID FOR THE DEBT WHICH IS CURRENTLY OWNED BY A BANK GROUP LED BY JP MORGAN & CO AN INDIVIDUAL FAMILIAR WITH THE NEGOTIATIONS SAID IN THE MEANTIME THE BANK IS EXPECTED TO SEEK ADDITIONAL OFFERS OTHER PARTIES UNDERSTOOD TO HAVE EXPRESSED AN INTEREST IN BUYING THE DEBT INCLUDE HONG KONG BILLIONAIRE LI KA SHING AND AN UNIDENTIFIED US PENSION FUND THE DEBT IS IN PLAY IT'S VERY STRATEGIC IT'S ESSENTIALLY COLLATERALIZED BY ALL OF O&Y'S PRIME REAL ESTATE THE INDIVIDUAL SAID A JP MORGAN SPOKESMAN DECLINED TO COMMENT ON WHETHER THE GROUP WAS TALKING TO APOLLO BUT SAID IT WAS CONTINUING TO EXPLORE ALL OPTIONS FOR RECOVERING THE VALUE OF ITS ASSET INCLUDING THE SALE OF ITS LOAN AND OF COURSE FURTHER NEGOTIATIONS WITH O&Y O&Y USA IS A SUBSIDIARY OF TORONTOBASED OLYMPIA & YORK DEVELOPMENTS LTD WHICH DURING THE 1980S BECAME ONE OF THE WORLD'S BIGGEST PROPERTY DEVELOPERS BUT COLLAPSED IN 1992 WHEN GLOBAL REALESTATE VALUES PLUNGED THE PARENT REORGANIZED UNDER CANADIAN BANKRUPTCY LAW LAST YEAR AND IS NOW EFFECTIVELY CONTROLLED BY ITS CREDITORS MOSTLY CANADIAN BANKS THE US UNIT WHICH WASN'T PART OF THE CANADIAN BANKRUPTCY FILING IS CURRENTLY MEETING INTEREST PAYMENTS ON ITS DEBT BUT THE US COMPANY IS ATTEMPTING TO RENEGOTIATE THE TERMS OF ITS OBLIGATIONS AS PART OF ITS OVERALL RESTRUCTURING EFFORT CREDITORS AND THE COMPANY SAY PROGRESS IS BEING MADE IN THE RESTRUCTURING TALKS IN THE MEANTIME THE COMPANY HAS SOLD SOME OF ITS SMALLER PROPERTIES INCLUDING RECENT SALES IN PORTLAND ORE AND BOSTON TO OFFSET A SMALL OPERATING CASH DEFICIT EXPECTED IN 1994 THE JP MORGANLED GROUP LENT THE MONEY TO O&Y USA IN 1991 IT IS SECURED BY THE COMPANY'S OWNERSHIP INTERESTS IN TOWERS A AND B OF THE WORLD FINANCIAL CENTER IN OTHER MANHATTAN OFFICE PROPERTIES AT 59 MAIDEN LANE AND 245 PARK AVE AND IN A LOS ANGELES BUILDING AS ONE OF THE LAST MAJOR LOANS EXTENDED TO THE COMPANY IT WAS CONSIDERED A VOTE OF CONFIDENCE IN PAUL REICHMANN THE COMPANY'S FORMER CONTROLLING SHAREHOLDER IN THE FACE OF SLUMPING REALESTATE MARKETS IF MR BLACK WANTED TO ACQUIRE ANY OF THE REAL ESTATE THAT BACKS THE DEBT HE WOULD FIRST HAVE TO BUY OUT THE LENDERS THAT HAVE FIRST LIENS ON THE PROPERTIES O&Y BUILT THE WORLD FINANCIAL CENTER WHICH IS ADJACENT TO THE WORLD TRADE CENTER IN DOWNTOWN MANHATTAN IN THE EARLY 1980S AND THE COMPLEX IS CONSIDERED ONE OF O&Y'S MORE LUCRATIVE PROPERTIES THE BUILDINGS ALONG THE HUDSON RIVER HOUSE COMPANIES SUCH AS AMERICAN EXPRESS MERRILL LYNCH & CO AND DOW JONES & CO PUBLISHER OF THIS NEWSPAPER THE WORLD FINANCIAL CENTER PROPERTIES AND 245 PARK AVE CLEARLY HAVE SOME VALUE OVER AND ABOVE THE OTHER MORTGAGE DEBT SAID AN INDIVIDUAL WITH KNOWLEDGE OF O&Y USA'S DEBT STILL SOME SEE ACQUIRING THE DEBT AS RISKY BECAUSE OF ITS JUNIOR RANKING THAT KIND OF DEBT IS VERY SUBJECT TO COMPLETE ELIMINATION IN A CHAPTER 11 BANKRUPTCYLAW FILING SAID EDWIN NORDHOLM AN EXECUTIVE WITH BATTERY PARK HOLDINGS INC WHICH OWNS A MINORITY INTEREST IN THE WORLD FINANCIAL CENTER BATTERY PARK HOLDINGS IS 50OWNED BY TORONTO'S BRONFMAN FAMILY THE JP MORGANLED GROUP WHICH ALSO INCLUDES BANK OF MONTREAL AND SEVERAL EUROPEAN BANKS HAS TAKEN A HARD LINE WITH O&Y USA FOR SOME TIME THE GROUP IN 1992 SEIZED AN INTERESTRATESWAP AGREEMENT THAT ALSO SERVED AS COLLATERAL TO THE LOAN THE EXACT AMOUNT OF THE LOAN CURRENTLY OUTSTANDING IS IN DISPUTE BECAUSE OF THE DIFFICULTY OF ASSIGNING A CASH VALUE TO THE SWAP AGREEMENT 9402110075 940211 BUSINESS BRIEF FOOD LION INC LOSS TOTALING 73 MILLION IS POSTED FOR 4TH QUARTER FOOD LION INC REPORTED A FOURTHQUARTER LOSS OF 73 MILLION OR 15 CENTS A SHARE REFLECTING A MAJOR CHARGE FOR CLOSING UNPROFITABLE STORES THE SALISBURY NC SUPERMARKET CHAIN SAID THE LOSS COMPARED WITH EARNINGS OF 273 MILLION OR SIX CENTS A SHARE IN 1992'S FOURTH QUARTER REVENUE ROSE 6 TO 240 BILLION FROM 227 BILLION AS EXPECTED THE COMPANY ESTABLISHED A PRETAX RESERVE OF 1705 MILLION IN THE QUARTER TO COVER COSTS ASSOCIATED WITH STORE CLOSINGS LAST MONTH FOOD LION SAID IT WOULD CLOSE 88 STORES THIS YEAR FOR ALL OF 1993 FOOD LION REPORTED THAT NET INCOME INCLUDING THE RESERVE FELL TO 39 MILLION OR ONE CENT A SHARE FROM 178 MILLION OR 37 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 6 TO 761 BILLION FROM 720 BILLION 9402110074 940211 VIACOM SAYS QVC BROKE RULES IN PARAMOUNT FIGHT NEW YORK VIACOM INC ACCUSED RIVAL QVC NETWORK INC OF BREAKING THE BIDDING RULES IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC BY TALKING ABOUT POSSIBLE FUTURE PURCHASES OF QVC'S STOCK SOME ANALYSTS AND INVESTORS WHO ATTENDED A MEETING TUESDAY WITH QVC CHAIRMAN BARRY DILLER SAID HE INDICATED THE CABLE SHOPPING SERVICE WAS EXPLORING WAYS TO BOLSTER THE VALUE OF QVC SHARES BEING OFFERED FOR PARAMOUNT INCLUDING POSSIBLE PLANS FOR QVC'S INVESTORS TO ANNOUNCE FUTURE PURCHASES OF QVC STOCK BUT QVC HAS SAID IT MADE NO SUCH PROMISES OR HINTS IN THOSE MEETINGS VIACOM CALLED THE REPORTED STATEMENTS CRUDE ATTEMPTS AT MARKET MANIPULATION AND A BACKDOOR ATTEMPT BY QVC TO CHANGE ITS OFFER AFTER THE FEB 1 DEADLINE ESTABLISHED BY THE PARAMOUNT BOARD TRADERS HAVE UNTIL MONDAY TO DECIDE WHICH OFFER TO ACCEPT LAST NIGHT QVC RESPONDED THAT VIACOM IS EITHER SUING OR COMPLAINING OR JUST MAKING NOISE WE HAVE DONE NOTHING IMPROPER A PERSON CLOSE TO QVC ALSO SAID THE COMPANY MIGHT ISSUE A STATEMENT ON THE ISSUES AS EARLY AS TODAY OR THAT IT MIGHT EVEN PLACE NEWSPAPER ADS ON MONDAY TO EXPLAIN ITS POSITION 9402110073 940211 BUSINESS BRIEF MELVILLE CORP FOURTHQUARTER NET INCOME SOARED AT SPECIALTY RETAILER MELVILLE CORP RYE NY REPORTED FOURTHQUARTER NET INCOME SOARED COMPARED WITH YEAREARLIER RESULTS THAT INCLUDED A STRATEGIC REALIGNMENT CHARGE OF 222 MILLION OR 213 A SHARE THE SPECIALTY RETAILER SAID EARNINGS ROSE TO 2374 MILLION OR 222 A SHARE FROM 372 MILLION OR 32 CENTS A SHARE THE PREVIOUS YEAR WITHOUT THE REALIGNMENT CHARGE 1992 FOURTHQUARTER EARNINGS WERE 2592 MILLION OR 245 A SHARE SALES EDGED UP TO 351 BILLION FROM 349 BILLION THE LATEST QUARTER HAD ONE MORE SELLING DAY THAN THE YEARAGO QUARTER SAMESTORE SALES IN THE PERIOD DECREASED 03 FOR THE YEAR EARNINGS JUMPED TO 3318 MILLION OR 3 A SHARE FROM 1334 MILLION OR 113 A SHARE BESIDES THE REALIGNMENT CHARGE A YEAR AGO MELVILLE RECORDED A CHARGE OF 226 MILLION OR 21 CENTS A SHARE FOR ACCOUNTING CHANGES IN RETIREMENT BENEFITS SALES FOR THE YEAR WHICH HAD ONE LESS SELLING DAY THAN THE PREVIOUS YEAR WERE ABOUT FLAT AT 1044 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK CLOSED AT 3925 UP 1125 9402110072 940211 LEISURE & ARTS THIS CRIMEBUSTER'S A DUMMY BY SUSAN G HAUSER SAN FRANCISCO JUST ABOUT THE SAME TIME OFFICER BOB GEARY OF THE SAN FRANCISCO POLICE DEPARTMENT WON THE RIGHT TO WALK HIS BEAT WITH A VENTRILOQUIST'S DUMMY THE POLICE IN MY HOMETOWN OF PORTLAND ORE INTRODUCED A POTBELLIED PIG NAMED HARLEY TO THE CRIME SQUAD I WAS TORN BETWEEN THE PIG AND THE DUMMY BUT OPTED TO INTERVIEW BRENDAN O'SMARTY THE LITTLE WOODEN POLICE OFFICER HE AT LEAST COULD COMMUNICATE AS LONG AS HE STOOD REAL CLOSE TO OFFICER GEARY THE PORTLAND PIG ON THE OTHER HAND COULD ONLY GRUNT AND SNORT AS HE WENT ABOUT HIS BUSINESS OF SNIFFING OUT ILLEGAL DRUGS BUT OFFICER GEARY A 24YEAR SAN FRANCISCO POLICE VETERAN HAD TROUBLE FITTING ME INTO HIS AND BRENDAN'S SCHEDULE A TRIP TO CHICAGO FOR AN APPEARANCE ON THE JERRY SPRINGER SHOW WOULD TAKE PRIORITY OVER A WALL STREET JOURNAL INTERVIEW YOU UNDERSTAND HE SAID I UNDERSTOOD SINCE THE NOVEMBER ELECTION WHEN SAN FRANCISCO VOTERS SAID YES TO PROPOSITION BB SHALL IT BE THE POLICY OF THE PEOPLE OF SAN FRANCISCO TO ALLOW POLICE OFFICER BOB GEARY TO DECIDE WHEN HE MAY USE HIS PUPPET BRENDAN O'SMARTY WHILE ON DUTY OFFICERS GEARY AND O'SMARTY HAVE BECOME MEDIA CELEBS BY THE TIME I GOT TO THEM THEY ALREADY HAD SAT THROUGH A SURFEIT OF NEWSPAPER MAGAZINE TV AND RADIO INTERVIEWS AND THERE WERE MORE TO COME IN FACT OUR ORIGINAL PLAN TO WALK OFFICER GEARY'S NORTH BEACH BEAT TOGETHER WAS SCRAPPED AT THE LAST MINUTE BECAUSE THAT WOULD HAVE CUT INTO THE TIME HE AND HIS DUMMY NEEDED FOR A TV INTERVIEW LATER IN THE DAY YOU UNDERSTAND HE SAID I UNDERSTOOD OFFICER GEARY HUGGED ME WHEN WE MET SQUEEZING ME WITH ENORMOUS BICEPS THAT BULGED FROM HIS SHORTSLEEVED UNIFORM SPEAKING EARNESTLY AND LOOKING ME STRAIGHT IN THE EYE HE TOLD ME HE WAS SKINNY AS A KID BUT NOW I DO UNDERWEAR ADS A LIFELONG BACHELOR HE SAID HE IS REGULARLY PURSUED BY WOMEN WHO VIEW HIM AS A KIND OF RENAISSANCE MAN ABLE TO DEFEND MYSELF HAVING BOXING SKILLS AND HAVING A PUPPET BRENDAN O'SMARTY IS A BIG PART OF HIS LIFE THOUGH OFFICER GEARY STOPS SHORT OF TUCKING HIS WHITTLED PARTNER IN AT NIGHT BRENDAN SLEEPS IN A LOCKER AT CENTRAL STATION BUT DURING MY VISIT TO THE PRECINCT THE PUPPET PLAYED SENTRY ON A DESKTOP REALLIVE COPS PASSED TO AND FRO SOMETIMES WITH HANDCUFFED CITIZENS IN TOW BRENDAN IN FULL UNIFORM AND PACKING A PLASTIC SIDEARM NEVER TWITCHED BRENDAN'S FLESHANDBLOOD COUNTERPART EXPLAINED THEIR PARTNERSHIP AND HOW IT HAS MADE THEM FAMOUS IT'S ALL ROOTED IN THE CONCEPT OF COMMUNITY POLICING AND THE CHIEF'S CALL TO DEVISE CREATIVE AND INGENIOUS METHODS FOR POSITIVE INTERACTION WITH THE COMMUNITY HOWEVER OFFICER GEARY'S SUPERVISORS DECIDED THAT WALKING THE BEAT WITH A DUMMY AND TALKING TO PEOPLE IN A NASAL WHINY VOICE WHILE MAKING THE DUMMY'S MOUTH MOVE WAS NOT CREATIVE AND INGENIOUS BUT WAS WELL DUMB OFFICER GEARY ALREADY HAD INVESTED HOURS OF PRACTICE IN FRONT OF THE MIRROR WITH A STICK HELD BETWEEN HIS LIPS SO HE WOULDN'T MOVE THEM THE DUMMY ITSELF HAD SET HIM BACK 1750 NOT TO MENTION THE 250 PRICE TAG ON A CUSTOMMADE MINIATURE SAN FRANCISCO POLICE UNIFORM AS WELL AS A BADGE NO 1/2 AND A TINY GUN HELD IN A LEATHER HANDCUFFS CASE EVERYBODY ON HIS BEAT SEEMED TO LIKE BRENDAN AND OFFICER GEARY HAD FOUND SEVERAL OCCASIONS TO USE THE DUMMY AS A NONLETHAL POLICE TOOL ONCE HE BROKE UP A BARROOM BRAWL BY THRUSTING THE DUMMY INTO THE COMBATANTS' FACES AND HAVING BRENDAN WHINE FREEZE LIKE A POPSICLE THERE WAS A MOMENT OF HESITATION SO BRENDAN SEIZED THE OPPORTUNITY TO URGE THEM TO TAKE A CHILL PILL WHEN THE DRUNKEN BRUTES BEGAN TO SNICKER OFFICER GEARY REALIZED THAT ONCE AGAIN HE AND HIS SIDEKICK HAD DISARMED PEOPLE WITH LAUGHTER ON ANOTHER OCCASION BRENDAN CAME TO A DRUG BUST AND HIS LITTLE LEGS DANGLING FROM OFFICER GEARY'S ARM READ A SUSPECT HIS MIRANDA RIGHTS IT MATTERED NOT A WHIT THAT THE ARRESTED MAN UNDERSTOOD NO ENGLISH BRENDAN'S MY WOODEN ESPERANTO EXPLAINS OFFICER GEARY IN SPITE OF THE FACT THAT BRENDAN WAS A BIG HIT WITH THE CITIZENS WHO ACTUALLY LINED UP FOR SAMPLES OF PUPPET PENMANSHIP SCRAWLED WITH OFFICER GEARY'S LEFT HAND THE POLICE BRASS WERE NOT AMUSED THEY FELT THAT BESIDES BEING SILLY CARRYING A PUPPET WOULD HINDER AN APPROPRIATE POLICE RESPONSE TO CRIME ALTHOUGH OFFICER GEARY COUNTERS I WOULD SET HIM ASIDE A LOT FASTER THAN ANOTHER OFFICER WOULD ABANDON A COFFEE AND A DOUGHNUT OFFICER GEARY WAS ORDERED TO SUBMIT A WRITTEN REQUEST WELL IN ADVANCE OF WHENEVER HE WANTED TO POUND THE PAVEMENT WITH THE PUPPET HE PROTESTED PUSH CAME TO SHOVE AND FUELED BY OFFICER GEARY'S OWN INVESTMENT OF 12000 THE ISSUE FOUND ITS WAY ONTO THE NOVEMBER BALLOT VICTORY WAS SWEET REPORTERS FROM ALL OVER THE WORLD SUDDENLY APPEARED AT CENTRAL STATION'S DOORSTEP OFFICER GEARY GOT TONGUETIED WHEN WE FOUND OUT WE HAD WON BRENDAN WAS TALKING WITH MY LIPS MOVING AND I WAS TALKING WITH HIS LIPS MOVING THEY DIDN'T KNOW WHO WAS WHO BUT BY NOW OFFICER GEARY HAS REGAINED HIS ONAIR ELOQUENCE HE REMINDED ME THAT HE HAD TO CUT OUR INTERVIEW SHORT BECAUSE HE WAS EXPECTED AT A TELEVISION STATION I ASKED HIM AT LEAST FOR A MOMENT TO PRETEND WE AND BRENDAN O'SMARTY WERE WALKING THE BEAT SO I COULD TRY TO IMAGINE IT SO WHILE HIS FELLOW OFFICERS SMIRKED AND MADE GAGGING GESTURES IN THE BACKGROUND OFFICER GEARY PARADED HIS PUPPET AROUND THE ROOM WHILE TALKING TO IMAGINARY PEOPLE IN BRENDAN'S WHINY VOICE I ASSURED OFFICER GEARY I UNDERSTOOD AS HE PACKED UP BRENDAN AND RUSHED OFF TO THE TV STUDIO BUT TO BE HONEST I FELT SHORTCHANGED BY THE DIMINUTIVE DUMMY BRENDAN O'SMARTY MAY HAVE BEEN PINTSIZED BUT I GUESS HE WAS JUST TOO BIG A STAR FOR ME I WONDER IF THAT PIG STILL HAS HIS FEET ON THE GROUND OR IF HE IS NOW SCHEMING TO SUCCEED TONYA HARDING AS PORTLAND'S MEDIA STAR PERHAPS HE STILL DOES INTERVIEWS WITH PEOPLE WHO DON'T HAVE THEIR OWN TALK SHOW I THINK I'LL HAVE MY PEOPLE CALL THE PIG'S PEOPLE AND MAYBE WE CAN DO LUNCH MS HAUSER IS A WRITER IN PORTLAND 9402110071 940211 STATE LAW LIMITING TERMS IN CONGRESS IS NULLIFIED SEATTLE A US DISTRICT JUDGE DECLARED A WASHINGTON STATE LAW LIMITING CONGRESSIONAL TERMS UNCONSTITUTIONAL IN A TEST CASE OF THE ABILITY OF STATES TO RESTRICT THE SERVICE OF FEDERAL LAWMAKERS THE DECISION IS A VICTORY FOR HOUSE SPEAKER THOMAS FOLEY D WASH WHO BROUGHT THE COURT CHALLENGE AFTER WASHINGTON VOTERS ENACTED THE LAW BY POPULAR INITIATIVE IN 1992 PROPONENTS OF THE MEASURE ONE OF 15 SUCH LAWS THAT STATES HAVE PASSED SAID THEY WOULD APPEAL THE RULING THE ISSUE IS EXPECTED TO BE RESOLVED BY THE US SUPREME COURT JUDGE WILLIAM DWYER HELD THAT THE WASHINGTON LAW WAS INVALID BECAUSE IT ADDED QUALIFICATIONS FOR MEMBERS OF CONGRESS BEYOND THOSE SPELLED OUT IN THE US CONSTITUTION THE OPINION IS CONSIDERED THE FIRST DEFINITIVE RULING ON THE ISSUE BY A FEDERAL JUDGE THE WASHINGTON INITIATIVE PROHIBITED INCUMBENTS FROM HAVING THEIR NAMES LISTED ON LOCAL BALLOTS AFTER SPECIFIED LENGTHS OF SERVICE SIX YEARS FOR HOUSE MEMBERS AND 12 YEARS FOR SENATORS PROPONENTS HAD ARGUED THE MEASURE WAS WITHIN STATES' POWER TO REGULATE ELECTIONS 9402110070 940211 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY LAND OF THE BRAVE HOME OF THE GREEN BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER BEFORE THE OLYMPICS THERE WAS THE CHEESE SLICER IT WAS THE MIDDLE OF THE ROARING '20S BUT THE ONLY PLACE ROARING IN LITTLE LILLEHAMMER WAS THE HOUSE OF THOR BJORKLUND EVERY MORNING AT BREAKFAST FATHER THOR SERVED UP CHEESE TO HIS NINE CHILDREN AND EVERY MORNING THE OFFSPRING BITTERLY BICKERED THAT ONE WAS GETTING A BIGGER SLICE THAN THE OTHERS FED UP WITH THE WHINING THOR DEVELOPED A DEVICE THAT CUT IN EQUAL PROPORTIONS BEHOLD THE CHEESE SLICER THE WORLD FINALLY BLESSED WITH FAIRNESS IN CHEESE BEAT A PATH TO LILLEHAMMER'S DOOR IT WASN'T LONG THOUGH BEFORE OTHERS FIGURED OUT THE SECRET OF THE SIMPLE SLICER AND STARTED MAKING THEIR OWN LILLEHAMMER WENT BACK INTO HIBERNATION NOW SEVEN DECADES LATER HERE COME THE WINTER OLYMPICS BESTOWED UPON THIS INLAND REGION OF NORWAY TO MUFFLE ITS COMPLAINING ABOUT BEING PASSED OVER BY THE OFFSHORE OIL BOOM ONCE AGAIN THE WORLD IS AT LILLEHAMMER'S FEET SO WHAT KIND OF PLACE IS THIS LILLEHAMMER FAVORED AMONG WINTER PLAYGROUNDS WITH A SECOND CHANCE AT IMMORTALITY IT IS TINY THINK OF LILLEHAMMER AS LILLIPUT WITH 23600 CITIZENS LILLEHAMMER IS THE SECONDSMALLEST CITY EVER TO HOST THE WINTER OLYMPICS BEHIND LAKE PLACID BUT LAKE PLACID HAD GREATER NEW YORK LILLEHAMMER HAS GREATER OPPLAND COUNTY WHERE 62 OF THE LAND IS MOUNTAINS THE REST IS MAINLY COVERED WITH FORESTS AND FARMS WHICH YIELD THE AREA'S TWO MAIN PRODUCTS PLANKS AND POTATOES IT IS BRAVE THIS LILLIPUT STOOD UP TO ITS GULLIVER COCACOLA CO THE GIANT FROM ATLANTA HAS BEEN A SPONSOR OF THE OLYMPICS SINCE BEFORE THE CHEESE SLICER AND NORMALLY WHAT COKE WANTS COKE GETS IN LILLEHAMMER COKE WANTED TO PUT UP ITS FAMOUS REDANDWHITE SIGNS ALL OVER TOWN LILLEHAMMER SAID NO ONE NEWSPAPER OBJECTED TO COKE'S PAINTING THE CITY RED LOCAL ENVIRONMENTALISTS DUBBED IT AESTHETIC POLLUTION THE BATTLE MARVELS ARNE HOVEODEGARD LILLEHAMMER'S DIRECTOR OF OLYMPIC BUSINESS WAS FRONTPAGE NEWS FOR 14 STRAIGHT DAYS A COMPROMISE WAS REACHED THERE WILL STILL BE PLENTY OF COKE SIGNS AROUND TOWN BUT GENERALLY BIG BILLBOARDS ARE OUT PARTICULARLY ALONG STORGATEN THE QUAINT PEDESTRIAN SHOPPING STREET LILLEHAMMER'S AUDACITY WAS CATCHING IN THE NEIGHBORING CITY OF HAMAR COKE HUNG A HUGE RED SKATE ADORNED WITH THE COKE LOGO FROM THE RAFTERS OF THE SPEEDSKATING ARENA LOCAL AUTHORITIES ORDERED THE SKATE REMOVED ON GROUNDS OF UGLINESS THE ONLY THING THEY WANT TO SEE HANGING IN THEIR ARENA IS A 75FOOTLONG WOODEN CHAIN CARVED FROM A SINGLE BIRCH TREE BY A SOLITARY MAN WORKING STEADILY FOR SIX YEARS NO ONE REALLY KNOWS WHAT IT SYMBOLIZES EXCEPT PERHAPS THE PAUCITY OF ENTICING NIGHT LIFE IN THE REGION I GUESS THE ARTIST HAD NOTHING BETTER TO DO WITH HIS TIME SAYS AN ARENA TOUR GUIDE IT IS GREEN THE LOCATION OF THE ARENA IN HAMAR SHAPED LIKE AN OVERTURNED VIKING SHIP WAS MOVED 100 YARDS SO AS NOT TO DISTURB THE 210 SPECIES OF MIGRATORY BIRDS WHO ANNUALLY REST ON NEARBY WETLANDS PRODDED BY ENVIRONMENTALISTS THE BUILDERS EVEN ROTATED THE ARENA SO THE ENTRANCE DOESN'T FACE THE RESERVE SPARING THE BIRDS THE SPECTACLE OF THOUSANDS OF FLAGWAVING HORNTOOTING PEOPLE A DAY AFTER FIRST OPPOSING THE OLYMPICS AS A RESOURCEWASTING CIRCUS THE NORWEGIAN SOCIETY FOR THE CONSERVATION OF NATURE REGROUPED TO FORM PROJECT ENVIRONMENTFRIENDLY OLYMPICS IT SUCCESSFULLY LOBBIED THE OLYMPIC ORGANIZERS TO IMPOSE A 7000 FINE FOR EACH PINE TREE DAMAGED DURING CONSTRUCTION OF THE BOBSLED AND LUGE RUNS OVERSAW TOPSOIL RECLAMATION AT THE SKI JUMP AND CROSSCOUNTRYBIATHLON FACILITIES AND CHALLENGED COKE TO REDUCE THE PLASTIC CONTENT OF ITS CUPS SO AS TO MAKE THEM MORE BIODEGRADABLE AND IN A CULINARY BREAKTHROUGH THE PLATES AND CUTLERY USED IN OLYMPIC CAFETERIAS WILL BE MADE OF POTATO AND CORN STARCH AND THUS WILL BE EDIBLE BUT THE ENVIRONMENTALISTS PROUD OF THESE VICTORIES AREN'T ENTIRELY SATISFIED THE PLATES TASTE LIKE STYROFOAM SAYS OLAV MYRHOLT MANAGER OF THE ENVIRONMENTFRIENDLY PROJECT NEEDS SOME LEMON DROPS IT IS SECURE IN NORWAY THE POLICE DON'T CARRY GUNS AND THEY WON'T AT THE OLYMPICS EITHER BUT THERE WILL STILL BE PLENTY OF FIREPOWER LURKING BEHIND THE TREES AND SNOWBANKS LILLEHAMMER'S PUNY FORCE OF TWO DOZEN POLICE WILL BE ASSISTED BY 2200 OFFICERS BROUGHT IN FROM AROUND NORWAY PLUS SOME 500 ARMY SOLDIERS IN ADDITION TO CROWD CONTROL THEY WILL BE ON GUARD AGAINST A SPECTRUM OF TERRORIST THREATS RANGING FROM AMERICAN ANTIABORTIONISTS NORWAY HAS LIBERAL ABORTION LAWS ANTIWHALING PROTESTERS NORWAY PERSISTS WITH ITS WHALING INDUSTRY AND PALESTINE LIBERATION ORGANIZATION HARDLINERS NORWAY HAS HOSTED THE BREAKTHROUGH MIDDLE EAST PEACE TALKS IT IS TRADITIONAL FOR THE FIRST TIME IN OLYMPIC ANNALS THE MASCOT WILL ACTUALLY BE A PERSON IN THIS CASE TWO PEOPLE HAKON AND KRISTIN HISTORICAL FIGURES FROM THE 13TH CENTURY WHO WILL BE PLAYED BY SEVERAL PAIRS OF NORWEGIAN CHILDREN HAKON HAKONSSON HEIR TO THE THRONE WAS BORN AMID A RAGING CIVIL WAR BETWEEN THE BIRCHLEGS AND THE BAGLERS IN 1206 THE BIRCHLEGS SO CALLED BECAUSE THEY WRAPPED THEIR LEGS IN BIRCH BARK TO KEEP WARM WERE FORCED TO FLEE OSLO WITH THE INFANT HEADING NORTH ON SKIS THEY SPENT CHRISTMAS IN LILLEHAMMER AND THEN CONTINUED THROUGH A BLIZZARD UNTIL HAKON WAS SAFE HAKON'S AUNT KRISTIN LATER MARRIED THE BAGLER KING RESULTING IN AN AMICABLE END TO THE WAR IN 1217 HAKON WAS CROWNED THE ONE TRUE KING OF NORWAY REIGNING UNTIL 1263 THERE'S MORE THE STICKFIGURE PICTOGRAMS IDENTIFYING THE INDIVIDUAL OLYMPIC EVENTS ARE INSPIRED BY A 4000YEAROLD STONE ETCHING OF A PERSON SKIING THE GOLD SILVER AND BRONZE MEDALS WILL BE SET IN LOCALLY MINED GRANITE GIDDY WITH STONE AGE TRADITION THE OLYMPIC ORGANIZERS EVEN SEARCHED THE COUNTRY TO FIND SOMEONE ABLE TO IGNITE THE TORCH FOR THE START OF ITS RELAY AROUND NORWAY BY RUBBING TWO STICKS TOGETHER NORWEGIAN CULTURE WILL ALSO DOMINATE TOMORROW'S OPENING CEREMONIES THERE WILL BE FOLK COSTUMES FOLK SONGS AND PLENTY OF REINDEER THE KING IS SCHEDULED TO ARRIVE BY HORSEDRAWN SLEIGH TROLLS MAY EMERGE FROM UNDER THE SKI JUMP THROUGHOUT LILLEHAMMER THERE IS EVEN A NOD TO THE TOWN'S PAST GILDED AGE STANDING AMONG THE FOREST OF OFFICIAL PRODUCTS SKIS SWEATERS THERMAL UNDERWEAR MOUNTAIN RESCUE SLEDS IS THE OFFICIAL OLYMPIC CHEESE SLICER SOME SEE IT AS A METAPHOR FOR THE GAMES' EGALITARIANISM BUT THE LOCALS PARTICULARLY THOSE WITH MANY CHILDREN KNOW BETTER IT IS SIMPLY A MUST AT THE BREAKFAST TABLE 9402110069 940211 BUSINESS BRIEF GITANO GROUP INC APPAREL COMPANY EXPECTS TO POST 4THPERIOD PROFIT GITANO GROUP INC WHICH RECENTLY PUT ITSELF UP FOR SALE SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF ABOUT 4 MILLION AND A NARROWER NET LOSS FOR ALL OF 1993 NEW YORKBASED GITANO WHICH HAS SPENT THE PAST YEAR DOWNSIZING ITS JEANS AND BUDGETAPPAREL BUSINESS SAID THAT IT EXPECTS TO POST A FOURTHQUARTER PROFIT COMPARED WITH A NET LOSS OF 146 MILLION THE YEAR EARLIER WHEN IT HAD 100 MILLION IN RESTRUCTURING CHARGES FOR ALL OF 1993 GITANO EXPECTS TO REPORT A NET LOSS OF 45 MILLION COMPARED WITH A 1992 NET LOSS OF 238 MILLION SINCE GITANO PUT ITSELF ON THE BLOCK LAST MONTH ITS MANAGEMENT HAS BEEN HOLDING DISCUSSIONS WITH A NUMBER OF INTERESTED PARTIES THE COMPANY SAID IN A NEWS RELEASE GITANO REITERATED THAT IT ISN'T UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE 130 MILLION GITANO OWES TO ITS SECURED LENDERS THE COMPANY HAS PHASED OUT ITS MANUFACTURING BUSINESSES AND NOW IS A MARKETER OF APPAREL USING THE GITANO LABEL GITANO GROUP INC WHICH IS UP FOR SALE REITERATED LAST WEEK THAT IT IS UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE 130 MILLION GITANO OWES TO ITS SECURED LENDERS THE QUOTE WAS MISSTATED IN AN ARTICLE FRIDAY 9402110068 940211 INSIDE GAME THE INFLATED RICHES OF NBA ARE PULLING AT THE LEAGUE'S SEAMS COMMISSIONER HAVING LED COMEBACK FACES TUSSLES WITH PLAYERS AND TEAMS NO COCACOLA FOR THE SHAQ BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL Q IS THERE A COMPANY TO WHICH YOU SOMETIMES LIKEN THE NBA A WELL I OFTEN SAY WHEN I'M ASKED TO DESCRIBE WHAT WE DO THAT OUR ASPIRATION OUR FOCUS IS LIKE THE DISNEY CO Q SO YOU MODESTLY ADMIT YOU HAVE 27 MAGIC KINGDOMS I TAKE IT A YES OR WE TRY TO MAKE THEM INTO 27 MAGIC KINGDOMS THEY DON'T HAVE QUITE AS MANY ANNUAL ADMISSIONS AS DISNEY WORLD DOES BUT THEY ARE GETTING CLOSE THUS DID COMMISSIONER DAVID STERN RECENTLY DEFINE HIS NATIONAL BASKETBALL ASSOCIATION THE EXCHANGE ALSO DEFINES HIS CURRENT PREDICAMENT HE REALLY CAN NOW IMMODESTLY COMPARE HIS LEAGUE TO THE THEMEPARK GIANT BUT HE MADE THE STATEMENT FROM A WITNESS STAND IN CHICAGO ONE OF SEVERAL FRONTS WHERE BUSINESS NBASTYLE IS EMBATTLED AS THE NBA BEGINS ITS ALLSTAR WEEKEND TODAY IN MINNEAPOLIS MR STERN STANDS UPON A SLIPPERY PINNACLE THE EXTRAVAGANZA SYMBOLIZES EVERYTHING HE HAS ACCOMPLISHED AS SPORT'S TOP CHIEF EXECUTIVE IT IS A SPONSORS' ORGY COMPLETE WITH THE SCHICK ROOKIE GAME AT&T LONGDISTANCE SHOOTOUT AND GATORADE SLAMDUNK CHAMPIONSHIP THE BIG GAME WILL BE A MAJOR PRIMETIME EVENT FOR NBC AND 16 FOREIGN NETWORKS BUT OFF THE COURT THE NBA IS UNDER STRESS FROM SUCCESS THE LEAGUE'S OWNERS WILL NO LONGER JUMP THROUGH HOOPS AT MR STERN'S EVERY COMMAND THE PORTLAND TRAIL BLAZERS DEFIED HIM LAST YEAR TO EXPLOIT A LOOPHOLE IN THE LEAGUE'S SALARY CAP OTHER TEAMS HAVE SINCE STAMPEDED THROUGH IT SIGNING ROOKIES TO MEGADEALS AND GIVING LONGTERM CONTRACTS TO ESTABLISHED STARS LIKE LARRY JOHNSON WHO IS GETTING 84 MILLION OVER 12 YEARS THE CHICAGO BULLS HAVE ALSO DEFIED MR STERN REFUSING TO REDUCE THE NUMBER OF THEIR GAMES CARRIED ON SUPERSTATION WGNTV AND IGNITING A LONG BITTER LEGAL BATTLE AND THE PLAYERS WHEN NOT JAMMING BASKETBALLS IN MINNEAPOLIS WILL BE HOLDING RESTIVE MEETINGS THEIR UNION BEGINS CONTRACT TALKS IN MARCH AND THEIR NEW NEGOTIATOR CHARLES GRANTHAM WILL PUT FORTH A HUGE DEMAND THE SALARY CAP THE DRAFT THE LEAGUE'S LICENSING AGREEMENT ALL MUST GO THE NBA'S LONG ERA OF GOOD FEELING MAY ALREADY BE GONE BASKETBALL HAS BEEN IN ITS GOLDEN AGE OVER THE PAST 10 YEARS SAYS DAVID FALK AGENT TO MICHAEL JORDAN PATRICK EWING AND OTHER STARS BUT THE DYNAMICS HAVE CHANGED SUBSTANTIALLY OVER THE PAST 12 MONTHS THE MOST OBVIOUS CHANGE IS THE RETIREMENT OF MR JORDAN THE LEAGUE'S TOP ATTRACTION BUT A BIGGER ISSUE FOR THE NBA IS COPING WITH THE STRAINS FROM ITS NEW RICHES AS IT HAS BECOME A MONEYMAKING MACHINE IT HAS BECOME PRONE TO FRACTIOUS SCUFFLING FOR THE REWARDS THIS MEANS EVER MORE FREQUENT VIOLATIONS OF MR STERN'S CARDINAL RULE KEEP THE UGLY SIDE OF THE BUSINESS OUT OF THE FANS' SIGHT THAT IS AN UNDERRECOGNIZED REASON FOR THE TURNAROUND OF THE NBA WHICH IN THE EARLY 1980S HAD FIVE TEAMS ON THE VERGE OF BANKRUPTCY AND 75 OF ITS PLAYERS BY SOME REPORTS ON DRUGS DAVID HAD A PHILOSOPHY SAYS RICK WELTS PRESIDENT OF NBA PROPERTIES INC THE LEAGUE'S MERCHANDISING ARM IF EVERYTHING WE DID FOCUSED ON WHAT HAPPENS BETWEEN THE FOUR LINES OF THE COURT AND WE COULD KEEP THE INTRAMURAL OWNERSHIP ISSUES OUT OF SIGHT THEN PEOPLE WOULD DISCOVER THIS GREAT GAME MR STERN GOT STARTED DOWN THAT PATH BY CREATING A PARTNERSHIP BETWEEN PLAYERS AND OWNERS A GUARANTEED 53 OF TICKET AND TV RECEIPTS FOR THE ATHLETES THAT BOUGHT LABOR PEACE PRO BASKETBALL IS THE ONLY MAJOR SPORT NEVER TO HAVE HAD A STRIKE AND STABILIZED LEAGUE FINANCES THEN HE TURNED THE NBA'S FIFTH AVENUE HEADQUARTERS INTO A STARMAKING FACTORY CREATING NEW DEMAND FOR THE GAME AND DEVELOPING PRODUCTS AND PROGRAMMING TO SATISFY IT THE NBA HATCHED A VIDEOCASSETTE BUSINESS PRODUCED ITS OWN YOUTHORIENTED TV SHOW INSIDE STUFF PUT OUT ITS OWN BASKETBALL CARDS AND MADE ITS TEAMS' ARENAS LIKE THEME PARKS WITH EACH GAME A SLICK SHOW MR STERN'S STAFF NUMBERING UNDER 50 WHEN HE BECAME COMMISSIONER IN 1984 HAS GROWN TO 450 IT DWARFS THAT OF OTHER LEAGUES MAJOR LEAGUE BASEBALL HAS 150 BUT THE NBA ISN'T LIKE OTHER LEAGUES ITS APPROACH GREW OUT OF ITS VALLEY FORGE PERIOD WHEN IT HAD TO THROW ITS OWN PEOPLE AT AN OPPORTUNITY OR PROBLEM BECAUSE NOBODY ELSE WOULD BOTHER FOR INSTANCE WHEN THE NBA'S TV RATINGS WERE PUNY STAFFERS PITCHED IN TO HELP SELL AD TIME FOR CBS ITS NETWORK THEN THEY BECAME MASTERS AT SELLING TV TIME IN CONNECTION WITH NUMEROUS OTHER SPONSORSHIP TIEINS WHICH IS NOW THE NBA'S HALLMARK MCDONALD'S CORP BUYS TIME ON NBA NETWORK GAMES HOSTS THE MCDONALD'S OPEN INTERNATIONAL TOURNAMENT PUTS OUT NBA TRADING CARDS AND IN SOME CITIES NAMES SANDWICHES AFTER NBA STARS MR STERN CONVINCED MCDONALD'S THAT THE NBA COULD PROJECT THE IMAGE AND REACH THE AUDIENCE THE FASTFOOD CHAIN DESIRED BASKETBALL TOOK AWAY THE ALLAMERICAN APPLEPIE IMAGE FROM BASEBALL SAYS DAVID GREEN A SENIOR MARKETING EXECUTIVE AT MCDONALD'S DAVID STERN IS ONE OF THE BEST BRAND MANAGERS THERE IS NOTHING DISPLAYS MR STERN'S ABILITY TO HYPE BOTH HIS PLAYERS AS BEING GOODGUY SUPERMEN AND HIS LEAGUE AS REACHING A VAST DESIRABLE 18 TO 34YEAROLD AUDIENCE MORE THAN THE ADVERTISING ON THIS YEAR'S SUPER BOWL BROADCAST FIVE OF THE SEVEN ATHLETES FEATURED IN THE COMMERCIALS WERE PRO BASKETBALL PLAYERS THE PROBLEM FOR MR STERN NOW IS KEEPING CONTROL OF THE STAR MACHINE HE HAS CREATED THAT TASK IS EVIDENT IN A LONGRUNNING DISPUTE WITH THE CHICAGO BULLS MICHAEL JORDAN'S ASCENDANCE MADE THEIR LOCAL TV RIGHTS A HOT PROPERTY BUT THE HOLDER TRIBUNE CO'S WGN IS A CABLETV SUPERSTATION IN 1990 THE NBA ORDERED SUPERSTATION TELECASTS CUT IT DIDN'T WANT MR JORDAN OVEREXPOSED REDUCING HIS VALUE AS AN ATTRACTION FOR NETWORK GAMES THE BULLS AND WGN HAVE BATTLED THE NBA IN COURT EVER SINCE SO FAR THE TEAM HAS WON EVERY ROUND THE BATTLE HAS COST THE LEAGUE MILLIONS OF DOLLARS IN LEGAL FEES AND A HUGE AMOUNT OF MR STERN'S ENERGY IN JANUARY ALONE THE LATEST TRIAL CHEWED UP 10 DAYS OF HIS TIME TO SOME IT APPEARS A PERSONAL TEST OF WILLS BETWEEN MR STERN AND THE CANNY BULLS OWNER JERRY REINSDORF TO THE COMMISSIONER HOWEVER WHAT IS AT STAKE IS THE LEAGUE'S ABILITY TO HOLD REIGN OVER BROADCAST RIGHTS IN THE BRAVE NEW WORLD OF TELEVISION AS HE TOLD ONE OWNER WITH A FUTURE OF 500 CHANNELS AND GAMES ON DEMAND I HAVE TO BE IN A POSITION TO CONTROL IT NO COMMISSIONER IS MORE TVCONSCIOUS THAN MR STERN HIS LEAGUE IS INVOLVED IN 80 INTERNATIONAL BROADCAST CONTRACTS WHICH TAKE ITS GAMES INTO 141 COUNTRIES THE GLOBE IS A VAST NEW SOURCE OF TV REVENUE AND FROM THAT EXPOSURE ALSO FLOWS A VAST LICENSING BUSINESS NBALICENSED PRODUCTS WILL GENERATE 28 BILLION IN SALES DURING THE 199394 SEASON 300 MILLION OF IT FROM OVERSEAS FIVE YEARS AGO THE FOREIGN TOTAL WAS ONLY 16 MILLION IT WAS THE NBA'S 1992 SUMMER OLYMPICS DREAM TEAM THAT MADE THE LEAGUE'S INTERNATIONAL TV AND PRODUCT BUSINESS SURGE THIS SUMMER THE LEAGUE WILL FIELD A SEQUEL DREAM TEAM II AT THE WORLD CHAMPIONSHIP GAMES IN TORONTO THE TOURNAMENT IS NOMINALLY RUN BY THE INTERNATIONAL BASKETBALL FEDERATION BUT IT IS REALLY A DAVID STERN PRODUCTION THE NBA IS LINING UP SPONSORS RUNNING THE EVENT AND HANDLING TV RIGHTS MR STERN CONTENDS MARC FLEISHER A PLAYER AGENT IS LOOKING TO CONTROL BASKETBALL ON A WORLDWIDE BASIS THE ATTRACTION IS CLEAR AS A GLOBAL BRAND AS NBA PEOPLE SOMETIMES CALL THEIR PRODUCT THE LEAGUE CAN EVEN MORE FIRMLY HITCH ITS WAGON TO GLOBAL CONSUMERGOODS COMPANIES THIS WEEK IT ANNOUNCED A MAJOR INTERNATIONAL SPONSORSHIP DEAL WITH COCACOLA CO BUT THE HAZARDS OF SUCH ALLIANCES HAVE ALSO BECOME CLEAR AS CONFLICTS BEGIN TO CROP UP IN 1992 NIKE INC THE BEAVERTON ORE ATHLETICFOOTWEAR COMPANY BALKED AT LETTING MICHAEL JORDAN APPEAR AT OLYMPICS MEDAL CEREMONIES IN REEBOK TOGS SHAQUILLE O'NEAL OF THE ORLANDO MAGIC WAS LEFT OFF DREAM TEAM II BECAUSE HE WOULDN'T RENOUNCE HIS COMMERCIAL TIES WITH PEPSI DURING THE TOURNAMENT THE NBA WHICH LINED UP COCACOLA AS A SPONSOR INSISTED HE AND OTHER PLAYERS DO SO IT'S A NEGATIVE BECAUSE IT REMINDS PEOPLE OF THE OUTRAGEOUS MONEY INVOLVED SAYS DAVID BURNS FOUNDER OF BURNS SPORTS CELEBRITY SERVICE CHICAGO WHICH CASTS ATHLETES FOR COMMERCIALS FOR YEARS MR STERN WAS ABLE TO KEEP OWNERS' SPENDING IN CHECK THROUGH ADROIT HANDLING OF THE SALARY CAP LETTING IT BEND PLENTY BUT NEVER BREAK AND THROUGH SHEER FORCE OF WILL BUT THAT MAY HAVE ENDED LAST SUMMER WHEN THE PORTLAND TRAIL BLAZERS SIGNED A FREEAGENT CENTER NAMED CHRIS DUDLEY THE TEAM'S PAYROLL LIMIT WOULDN'T REALLY ACCOMMODATE THE SEVENYEAR 11 MILLION CONTRACT OFFERED BUT PORTLAND GAVE MR DUDLEY AN OPTION TO LEAVE AFTER ONE YEAR AN ARRANGEMENT THAT THE TEAM CLAIMED UNDER THE CAP'S ARCANE RULES MADE HIS SALARY FIT THE NBA DISAGREED AND DISALLOWED THE CONTRACT A FEDERAL COURT OVERRULED THE LEAGUE AND A RAFT OF COPYCAT DEALS SOON DWARFED MR DUDLEY'S INCLUDING A COMBINED 163 MILLION TO THE LEAGUE'S TOP THREE DRAFT PICKS CHRIS WEBBER OF THE GOLDEN STATE WARRIORS SHAWN BRADLEY OF THE PHILADELPHIA 76ERS AND ANFERNEE HARDAWAY OF THE ORLANDO MAGIC THE OWNERS ARE ENJOYING SO MUCH PROSPERITY THEY'RE BEGINNING TO ASSERT THEIR INDEPENDENCE SAYS MR FALK THE AGENT YOU'RE SEEING A STRAIN ON THE BINDS THAT HAVE KEPT EVERYBODY IN CHECK THE QUESTION IS CAN DAVID STILL HOLD THEM TOGETHER MR STERN MUST ALSO TRY TO HOLD ONTO LABOR PEACE THE LEAGUE'S AGREEMENT WITH THE PLAYERS EXPIRES IN JUNE AND MR GRANTHAM WANTS WHAT IS LEFT OF THE SALARY CAP TO EXPIRE WITH IT IT WAS NEVER VIEWED THAT WE'D HAVE THE CAP FOREVER HE SAYS CONDITIONS REQUIRED IT IN THE EARLY '80S BUT THEY CERTAINLY DON'T NOW MR GRANTHAM HAS BEEN GIRDING THE PLAYERS AND THEIR AGENTS FOR BATTLE DISTRIBUTING ECONOMIC DATA IN A PACKET CALLED COUNTDOWN TO 1994 IT SAYS THAT THE AVERAGE PLAYER'S SALARY HAS RISEN FIVEFOLD DURING THE CAP ERA TO 14 MILLION BUT TEAM VALUES HAVE RISEN TENFOLD THE NEXT NEW FRANCHISES WILL COST 125 MILLION IT SAYS THAT 22 OF THE 27 TEAMS WILL BE OVER THE CAP NEXT SEASON SEVERELY LIMITING FREEAGENT MOVEMENT IT ALSO SAYS THAT OF THE 28 BILLION IN NBALICENSED MERCHANDISE TO BE SOLD THIS SEASON PLAYERS WILL COLLECT JUST 500000 IN ROYALTIES SCOFFS MR STERN IF YOU'RE A UNION WHOSE PLAYERS ARE EARNING 2 MILLION A YEAR AND YOU NEED SOMETHING TO RALLY THEM YOU SAY YOU'RE NOT GETTING ENOUGH TSHIRT MONEY' MR STERN'S CONTRACT PAYS HIM 275 MILLION OVER FIVE YEARS BUT THE PLAYERS HAVE ALREADY BEEN STIRRED BY MR GRANTHAM'S DISCOVERY IN BULLSWGN COURT DOCUMENTS THAT THE OWNERS HAD UNDERREPORTED REVENUE FOR CAP PURPOSES THAT LED TO A 62 MILLION SETTLEMENT IN 1992 THE STATE OF TRUST ISN'T WHAT IT WAS SAYS ISIAH THOMAS THE UNION PRESIDENT AND DETROIT PISTONS GUARD THE PLAYERS HAVE A LEVEL OF DISCOMFORT THEY DIDN'T BEFORE CERTAINLY THE LEVEL OF RAPPORT BETWEEN THE PRINCIPAL NEGOTIATORS HAS DIMINISHED LARRY FLEISHER THE UNION'S CHIEF OF 25 YEARS AND MR STERN A LEAGUE LAWYER DATING BACK TO THE 1960S WERE FAMILIAR ADVERSARIES THEY HAD LEGENDARY SCREAMING MATCHES BUT THEY WORKED OUT THE SALARY CAP AND ALWAYS PRESERVED LABOR PEACE MR FLEISHER DIED IN 1989 YOU HAD TWO CLASSIC NEW YORK GUYS WHO WERE ABLE TO TALK TOUGH BUT AT THE END ALWAYS COME TO AN AGREEMENT SAYS ONE PERSON FAMILIAR WITH THE RELATIONSHIP YOU DON'T HAVE THAT COMMON STARTING POINT WITH CHARLIE GRANTHAM CHARLIE MAY FEEL HE HAS TO DO SOMETHING DRAMATIC TO MAKE HIS MARK MR STERN CLAIMS TO BE SANGUINE ABOUT THIS AND JUST ABOUT ANY OTHER POTENTIAL PERIL ON THE HORIZON ONLY ONE THING CAN HAUNT HIM IN THE DARKEST HOURS OF THE NIGHT HE ALLOWS IN THIS ERA IN WHICH THE NBA SHINES BRIGHTEST THE WORST FEAR I HAVE HE SAYS IS THAT ALL THE PARTIES WHO WERE ESSENTIAL FOR OUR SUCCESS FORGET HOW WE GOT THERE IN THE FIRST PLACE 9402110067 940211 BUSINESS BRIEF BARNES & NOBLE INC REVENUE IN FISCAL 4TH PERIOD ROSE BY 19 BOOKSELLER SAYS BARNES & NOBLE INC THE NATION'S LARGEST BOOKSELLER SAID FISCAL FOURTHQUARTER REVENUE ROSE 19 TO 484 MILLION FROM 408 MILLION A YEAR AGO FOR THE FULL YEAR WHICH ENDED JAN 29 REVENUE ROSE 23 TO 134 BILLION FROM 109 BILLION THE NEW YORKBASED COMPANY SAID TIGHT CONTROL ON OPERATING EXPENSES HELPED IT REMAIN ON PLAN DESPITE NEGATIVE EFFECTS OF THE WEATHER AND THE EARTHQUAKE IN JANUARY FOURTHQUARTER REVENUE AT THE COMPANY'S SUPERSTORES ROSE 66 TO 230 MILLION FROM 139 MILLION WHILE SAMESUPERSTORE SALES ROSE 76 IN THE QUARTER SAMESUPERSTORE SALES FOR STORES OPENED BY THE COMPANY EXCLUDING BOOKSTOP AND BOOKSTAR STORES ACQUIRED IN 1989 ROSE 9 FOR THE FOURTH QUARTER AND 115 FOR THE FULL YEAR SAMESTORE SALES FOR THE MALL DIVISION FELL 19 FOR THE QUARTER AND WERE VIRTUALLY FLAT FOR THE YEAR BARNES & NOBLE OPERATES 203 SUPERSTORES UNDER THE BARNES & NOBLE BOOKSTOP AND BOOKSTAR NAMES THE COMPANY ALSO HAS 734 MALL STORES UNDER THE B DALTON BOOKSELLER DOUBLEDAY BOOK SHOPS AND SCRIBNER'S BOOKSTORE NAMES 9402110066 940211 BUSINESS BRIEF FAIRCHILD CORP ASSET SALES HELPED CONCERN POST PROFIT FOR 2ND QUARTER FAIRCHILD CORP HURTING FROM THE RECESSION IN AIRCRAFT MANUFACTURING MANAGED TO POST A FISCAL SECONDQUARTER PROFIT OF 701 MILLION BECAUSE OF A ONETIME GAIN FROM THE SALE OF ASSETS FOR THE THREE MONTHS ENDED JAN 2 THE COMPANY EARNED 435 A SHARE COMPARED WITH A LOSS OF 79 MILLION OR 49 CENTS A SHARE A YEAR EARLIER THE CHANTILLY VA COMPANY SAID IT HAD A PRETAX GAIN OF 1291 MILLION FROM THE SALE OF THE COMPANY'S 439 STAKE IN REXNORD CORP A MILWAUKEE MAKER OF MECHANICALTRANSMISSION PARTS THE AEROSPACE INDUSTRIAL PRODUCTS AND COMMUNICATIONS SERVICES COMPANY SAID SALES DECLINED 96 TO 1054 MILLION FROM 1165 MILLION FAIRCHILD SAID ITS PERFORMANCE WAS SEVERELY AFFECTED BY A DROP IN SALES OF AEROSPACE FASTENERS REFLECTING AN ONGOING DECLINE IN THE AIRCRAFT INDUSTRY FAIRCHILD SHARES FELL 125 CENTS TO 4 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9402110064 940211 POLITICS & POLICY PANEL APPOINTED TO STUDY CUTS IN BENEFIT PROGRAMS WASHINGTON PRESIDENT CLINTON AND CONGRESSIONAL LEADERS SELECTED A 32MEMBER COMMISSION TO STUDY WAYS TO REDUCE GOVERNMENT SPENDING ON BENEFIT PROGRAMS MR CLINTON APPOINTED 10 MEMBERS OF THE 32PERSON COMMISSION ON ENTITLEMENT REFORM TO BE HEADED BY DEMOCRATIC SEN ROBERT KERREY OF NEBRASKA AND REPUBLICAN SEN JOHN DANFORTH OF MISSOURI ENTITLEMENTS ARE PROGRAMS THAT PAY BENEFITS TO ANYONE WHO QUALIFIES THE PANEL'S TOUGHEST ISSUE WILL BE DEALING WITH THE SOCIAL SECURITY SYSTEM WHICH IS EXPENSIVE BUT USUALLY IS CONSIDERED A SACRED COW ADMINISTRATION OFFICIALS HAVE SUGGESTED IT IS UNLIKELY THAT SOCIAL SECURITY WOULD BE CHANGED MUCH THE KERREY COMMISSION AS IT IS KNOWN MAY HAVE SOME FIERY DAYS AHEAD AMONG ITS MEMBERS ARE LIBERALS SUCH AS BOB GREENSTEIN EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET PRIORITIES AND CONSERVATIVES SUCH AS WYOMING REPUBLICAN SEN ALAN SIMPSON MR CLINTON SAID THE COMMISSION WILL GRAPPLE WITH REAL ISSUES OF ENTITLEMENT REFORMS NOT CAPS OR GIMMICKS THAT DEFER HARD CHOICES BUT SPECIFIC AND CONSTRUCTIVE PROPOSALS THE COMMISSION WILL ISSUE A REPORT TO THE WHITE HOUSE LATER THIS YEAR 9402110063 940211 STOCKBROKERS' COMPENSATION ROSE 10 IN '93 SMALL INVESTORS' ACTIVITY CITED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S STOCKBROKERS EARNED AVERAGE 1993 PAYCHECKS OF A RECORD 128000 UP 10 FROM 1992 THANKS TO A SURGE IN TRADING ACTIVITY BY SMALL INVESTORS BUT NOT ALL BROKERS ARE HAPPY SOME WILL GET A SMALLER SLICE OF COMMISSIONS THAN BEFORE AS SOME FIRMS CUT PAYOUTS UNLIKE SALARIES IN MOST OF CORPORATE AMERICA THE COMPENSATION OF MANY BROKERS IS TIED DIRECTLY TO THE TRADING COMMISSIONS THEY GENERATE BROKERS GET TO KEEP A PORTION OF SUCH COMMISSIONS TYPICALLY 25 TO 45 DEPENDING ON THE OVERALL VOLUME OF BUSINESS THEY GENERATE AND THE TYPES OF PRODUCTS THEY SELL CONSIDER THE SITUATION OF SOME TOP BROKERS AT PAINEWEBBER GROUP INC THOSE WHO GENERATED 1993 COMMISSIONS OF SAY 450000 GOT TO KEEP 42 OF THAT AMOUNT OR ABOUT 189000 BUT THIS YEAR PAINEWEBBER IS TRIMMING THE BIG BROKERS' COMMISSIONS TO 40 PAINEWEBBBER SAYS THE SMALL CUT IN COMPENSATION FOR SOME BROKERS STEMS FROM A NEW COMPENSATION PLAN THAT FUNNELS THE SAME SALES COMMISSION TO BROKERS NO MATTER WHETHER THEY SELL INTERNAL OR PROPRIETARY INVESTMENTS OR OUTSIDE PRODUCTS PREVIOUSLY PAINEWEBBER HAD PAID SLIGHTLY MORE FOR PROPRIETARY PRODUCTS THAN FOR EXTERNAL INVESTMENTS MY BROKERS ON AVERAGE TOOK A MAXIMUM TWO PERCENTAGE POINT CUT IN PAY BECAUSE OF THE NEW COMPENSATION SYSTEM SAYS JOSEPH GRANO PAINEWEBBER'S BROKERAGE CHIEF NO ONE LIKES TO SEE A CUT IN PAY MR GRANO ADDS BUT BROKERS ARE VERY FAIRLY COMPENSATED THE OVERALL SURGE IN BROKERS' PAYCHECKS COMES AS THE SECURITIES AND EXCHANGE COMMISSION INTENSIFIES ITS PRESSURE ON SECURITIES FIRMS TO CHANGE BROKERS' COMPENSATION SAYING THAT THE CURRENT SYSTEM OF COMMISSIONS PRODS SOME BROKERS TO CHEAT CUSTOMERS THE SEC IS CONCERNED THAT PAYING BROKERS BASED ON HOW MUCH IN COMMISSIONS THEY DRUM UP ENCOURAGES THEM TO SELL MORE AND MORE WITHOUT REGARD TO HOW SUITABLE THE TRADES ARE TO CLIENT NEEDS RECENTLY SOME BROKERAGE FIRMS HAVE MOVED MORE TOWARD PAYING BROKERS FOR THE CLIENT MONEY THEY BRING IN TO THE FIRM AND HOW WELL CLIENTS DO AND LESS ON THE AMOUNT OF TRADES THEY GENERATE THIS OFTEN IS DONE BY ARRANGING WRAP ACCOUNTS DIRECTING CLIENTS' MONEY FOR AN ANNUAL FEE TO A HANDFUL OF PROFESSIONAL PORTFOLIO MANAGERS THE UPSHOT BROKERS EARN MORE IF THEIR CLIENTS DO TOO AND THEY LOSE IF SUCH ACCOUNTS DON'T FARE WELL JOHNNY PRIBYL A PAINEWEBBER BROKER IN OKLAHOMA CITY GENERATED HALF HIS BUSINESS LAST YEAR FROM WRAP ACCOUNTS UP FROM 30 SEVERAL YEARS AGO ALL WE HAVE TO DO TO MAKE MORE MONEY IS MAKE THE CLIENTS' ACCOUNTS GROW MR PRIBYL SAYS WHAT HAS FUELED THE RECENT BOOM IN BROKER COMPENSATION IS FRENZIED TRADING ACTIVITY BY SMALL INVESTORS PARTICULARLY THROUGH MUTUAL FUNDS NET SALES OF STOCK MUTUAL FUNDS TOTALED A RECORD 13495 BILLION IN 1993 A 67 JUMP FROM 8073 BILLION IN 1992 THE PRIOR RECORD ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A TRADE GROUP THE NATION'S 91000 BROKERS WILL BE IN EVEN MORE DEMAND DURING THE NEXT FEW YEARS SOME ANALYSTS SAY THIS IS PARTLY BECAUSE EMPLOYEES INCREASINGLY ARE BEING REQUIRED TO MAKE THEIR OWN INVESTMENT DECISIONS REGARDING THEIR RETIREMENT PORTFOLIOS IN THE PAST MANY EMPLOYERS FILLED THAT ROLE AS MORE PEOPLE ARE IN CHARGE OF THEIR RETIREMENT FUNDS THEY WILL NEED FINANCIAL ADVICE MORE THAN EVER SAYS JEFFREY SCHAEFER RESEARCH DIRECTOR AT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP MEANWHILE BROKERS' 1993 MEDIAN COMPENSATION THE LEVEL THAT SEPARATES THE TOP AND BOTTOM HALVES OF BROKERS' PRODUCTION WAS A RECORD 86050 ACCORDING TO WALL STREET EXECUTIVES THAT'S 10 HIGHER THAN 1992'S MEDIAN FIGURE OF 78227 BUT 33 BELOW 1993'S AVERAGE COMPENSATION THE GAP IS PARTLY DUE TO A MINORITY OF SUPERSTAR BROKERS WHO EACH GENERATED COMMISSIONS OF 1 MILLION OR MORE THESE HEAVY HITTERS BOOSTED AVERAGE PAY LEVELS THE MILLIONDOLLAR PRODUCERS AREN'T AS RARE AS THEY USED TO BE SAYS DAN JAMIESON EDITOR OF REGISTERED REPRESENTATIVE MAGAZINE A TRADE JOURNAL BUT THE AVERAGE BROKER IN THE AVERAGE OFFICE OFTEN MAKES 50000 60000 70000 THEY'RE NOT BRINGING HOME HALF A MILLION BUCKS HE SAYS 9402110062 940211 BUSINESS BRIEF PENN CENTRAL CORP DIRECTORS STUDYING PROPOSAL TO ACQUIRE INSURANCE LINES PENN CENTRAL CORP SAID IT IS MULLING A PROPOSAL TO ACQUIRE THE PERSONALLINES INSURANCE OPERATIONS OF A UNIT OF AMERICAN FINANCIAL CORP FOR ABOUT 380 MILLION THE PERSONALLINES BUSINESS OF THE GREAT AMERICAN INSURANCE CO UNIT REPORTED NET EARNED PREMIUMS OF 342 MILLION IN 1993 ABOUT 70 OF THESE PREMIUMS CAME FROM STANDARD PRIVATE PASSENGER AUTOMOBILE INSURANCE PENN SAID AMERICAN'S SALE PROPOSAL WOULD INCLUDE THE TRANSFER BY THE UNIT OF AN INVESTMENT PORTFOLIO OF SECURITIES WITH A CURRENT MARKET VALUE OF ABOUT 450 MILLION PENN WHICH IS MAINLY INVOLVED IN SPECIALTY PROPERTY AND CASUALTY INSURANCE SAID ITS DIRECTORS HAD CONCLUDED THAT THE PROPOSED ACQUISITION MERITS SERIOUS CONSIDERATION THEY NAMED A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS TO REVIEW THE PROPOSAL AMERICAN FINANCIAL OWNS 405 OF PENN CENTRAL'S SHARES AND AMERICAN'S MAIN SHAREHOLDER CARL H LINDNER IS PENN CENTRAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9402110061 940211 BUSINESS BRIEF MEDRAD INC FISCAL FOURTHQUARTER NET TO HAVE ASSET WRITEDOWN MEDRAD INC PITTSBURGH SAID EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED JAN 31 WILL INCLUDE AN ASSET WRITEDOWN OF ABOUT 16 MILLION RELATED TO INVENTORY OF THE COMPANY'S IMAGEENHANCEMENT LINE MEDRAD WHICH MAKES PRODUCTS THAT IMPROVE THE CLARITY OF MEDICAL IMAGES OF THE HUMAN BODY SAID RESULTS FOR THE FISCAL 1994 FOURTH QUARTER AND YEAR WILL REFLECT SLOWING GROWTH DUE TO MARKET UNCERTAINTIES AND HEIGHTENED PRICING PRESSURES AFFECTING THE HEALTHCARE INDUSTRY THE COMPANY REPORTED PROFIT OF 25 MILLION OR 39 CENTS A SHARE FOR THE YEARAGO FOURTH QUARTER THE COMPANY EXPECTS FISCAL FOURTHQUARTER REVENUE IN 1994 TO FALL 3 TO ABOUT 206 MILLION FROM 213 MILLION REFLECTING REDUCED EQUIPMENT SALES FOR THE YEAR IT EXPECTS PROFIT TO BE SLIGHTLY AHEAD OF 1993 RESULTS AND REVENUE TO BE ABOUT 717 MILLION UP FROM 674 MILLION IN 1993 9402110060 940211 ARCO CHAIRMAN TO TAKE REINS OF REBUILD LA BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES REBUILD LA THE PRIVATE GROUP FORMED TO REVITALIZE BLIGHTED AREAS AFTER THIS CITY'S 1992 RIOTS HAS SELECTED ATLANTIC RICHFIELD CO CHAIRMAN LODWRICK M COOK AS ITS CHAIRMAN THE NAMING OF MR COOK CAME AS A SURPRISE TO MANY ARCO INSIDERS BUT THE OIL COMPANY SAID THE 65YEAROLD EXECUTIVE HAS MADE IT CLEAR HE DOESN'T EXPECT THE NEW JOB TO INTERFERE WITH HIS CORPORATE RESPONSIBILITIES HE IS GOING TO GIVE THE COMPANY ALL THE ATTENTION IT REQUIRES ARCO SPOKESMAN AL GREENSTEIN SAID LINDA GRIEGO A BUSINESSWOMAN WHO WAS AN UNSUCCESSFUL MAYORAL CANDIDATE LAST YEAR WAS NAMED EXECUTIVE DIRECTOR OF REBUILD LA ACCORDING TO A SPOKESWOMAN FOR THE ORGANIZATION IN THAT ROLE MS GRIEGO WILL BE RESPONSIBLE FOR THE DAYTODAY OPERATIONS OF THE ORGANIZATION THE REVAMPED RLA STRUCTURE WITH AN UNPAID CHAIRMAN OFFERING THE WEIGHT OF HIS REPUTATION AND LEADERSHIP ALONG WITH A PAID CHIEF EXECUTIVE HANDLING DAILY AFFAIRS REPLACES THE PREVIOUSLY UNWIELDY SYSTEM OF FOUR COCHAIRS THE CHAIRMAN'S JOB HAD BEEN HELD BY PETER UEBERROTH THE FORMER BASEBALL COMMISSIONER AND HEAD OF THE COMMITTEE THAT ORGANIZED THE 1984 SUMMER OLYMPIC GAMES HERE WHEN MR UEBERROTH STEPPED DOWN LAST MAY WITHOUT A SINGLE HIGHPROFILE SUCCESSOR MANY CONSIDERED THE ORGANIZATION TO HAVE BEEN A FAILURE THE ARCO SPOKESMAN SAID THAT MR COOK PREVIOUSLY HAD SAID HE WOULDN'T TAKE THE RLA JOB WITHOUT A FULLTIME EXECUTIVE TO MANAGE THE ORGANIZATION'S AFFAIRS MS GRIEGO 46 WAS MR COOK'S HANDPICKED CHOICE PEOPLE AT RLA SAID WE HAVE SELECTED FOR THE BOARD A TERRIFIC TEAM TO HEAD THE INNERCITY EFFORT SAID BARRY SANDERS A FORMER RLA COCHAIRMAN AND A MEMBER OF THE 13MEMBER SELECTION COMMITTEE HE SAID HE WAS CONFIDENT THE TWO WOULD BE CONFIRMED BY RLA'S 96MEMBER BOARD AT A MEETING NEXT TUESDAY WHILE GUIDING ATLANTIC RICHFIELD THROUGH A RESTRUCTURING AND MAJOR PERSONNEL REDUCTIONS OVER THE YEARS MR COOK HAS ALSO PLAYED AN ACTIVE ROLE IN CIVIC AND PHILANTHROPIC ORGANIZATIONS IN SOUTHERN CALIFORNIA FOR EXAMPLE HE IS CHAIRMAN OF A GROUP RAISING MONEY FOR THE LOS ANGELES PUBLIC LIBRARY SYSTEM BEFORE THE ANNOUNCEMENT MR COOK HAD SAID HE PLANNED TO RETIRE FROM ARCO IN THE SUMMER OF 1995 HE BECAME 65 LAST YEAR BUT THE COMPANY'S BOARD ASKED HIM TO STAY ON AS CHAIRMAN PAST THE MANDATORY RETIREMENT AGE UNTIL JUNE 1995 9402110059 940211 POLITICS & POLICY CLINTON RETAINS DESIRE FOR SPENDING BUT BUDGET REVEALS THE RESTRAINTS OF DEFICITCUTTING LAWS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SPEECH IN HOUSTON THIS WEEK PRESIDENT CLINTON SAID HE WANTS TO SPEND MORE MONEY ON LOCAL POLICE MORE ON PRISONS MORE TO DEVELOP COMMERCIAL APPLICATIONS FOR MILITARY TECHNOLOGY MORE TO TRAIN LAIDOFF WORKERS MORE FOR APPRENTICESHIPS MORE FOR THE HOMELESS MORE FOR HEAD START MR CLINTON CLEARLY HASN'T LOST HIS APPETITE FOR SPENDING MORE BUT THE HARD NUMBERS IN THE NEW FEDERAL BUDGET SHOW HOW MUCH TROUBLE HE IS HAVING THE SPENDING RESTRAINTS BUILT INTO THE 1990 AND 1993 DEFICITREDUCTION LAWS DESPITE THEIR FLAWS ARE SHACKLING HIM AND THE COMBINED BIPARTISAN POLITICAL POWER OF CONGRESSIONAL DEFICIT FIGHTERS ANTISPENDING CONSERVATIVES AND PROPONENTS OF BALANCING THE BUDGET PREVENT HIM FROM CHEATING TOO MUCH OR TRYING TO CHANGE THE LAW MOST PEOPLE THINK THE BUDGET IS A MYSTERY MR CLINTON SAID IN HOUSTON THIS WEEK HERE THEN IS A DETECTIVE'S GUIDE THE PRESIDENT PROPOSES TO SPEND 15 TRILLION IN THE FISCAL YEAR THAT ENDS SEPT 30 1995 ABOUT HALF WILL GO FOR VARIOUS GOVERNMENT BENEFITS FROM SOCIAL SECURITY AND MEDICARE TO BUREAUCRATS' PENSIONS MORE ON THAT LATER ANOTHER 15 WILL GO FOR INTEREST THE REMAINING 35 THE PART OF THE BUDGET THAT GETS THE MOST ATTENTION WILL GO FOR ANNUALLY APPROPRIATED SPENDING ON EVERYTHING FROM PAPER CLIPS FOR THE PENTAGON TO ASTRONAUTS' SALARIES THIS DISCRETIONARY SPENDING AS IT'S KNOWN HAS STOPPED CLIMBING BECAUSE PRESIDENT BUSH AND CONGRESS SET CAPS ON IT BACK IN 1990 AND MR CLINTON AGREED TO CONTINUE THEM LAST YEAR THE CAPS FOR THE MOST PART HAVE HELD BETTER THAN MANY IN WASHINGTON EXPECTED THE END OF THE COLD WAR OF COURSE ALLOWED BOTH MR BUSH AND MR CLINTON TO DIVERT MONEY FROM THE DEFENSE BUDGET TO DOMESTIC PROGRAMS BUT MR CLINTON HIS CRITICS NOTWITHSTANDING HASN'T MANAGED TO CAPTURE NEARLY AS MUCH OF THIS PEACE DIVIDEND AS RICHARD NIXON AND JIMMY CARTER DID FOR EVERY DOLLAR THAT DEFENSE WAS CUT AS THE VIETNAM WAR WOUND DOWN IN THE 1970S DOMESTIC DISCRETIONARY SPENDING ROSE BY 68 CENTS AFTER ADJUSTING FOR INFLATION FOR EVERY DOLLAR THAT DEFENSE IS BEING CUT IN THE 1990S DOMESTIC SPENDING IS PROJECTED TO CLIMB BY 23 CENTS AND NEARLY ALL OF THAT INCREASE OCCURRED ON MR BUSH'S WATCH OVER THE NEXT FIVE YEARS MR CLINTON PROPOSES TO INCREASE WHAT'S KNOWN AS BUDGET AUTHORITY THE MONEY THAT GOES INTO AGENCY CHECKBOOKS FOR DOMESTIC PROGRAMS BY 33 BILLION OR 15 BUT OUTLAYS THE CHECKS THAT AGENCIES WRITE FROM BUDGET AUTHORITY GRANTED IN THE PAST WOULD RISE BY 225 BILLION OR 87 THERE'S NOTHING SINISTER ABOUT THE DISCREPANCY NEARLY ALL OF IT REFLECTS THE WAY THE GOVERNMENT ACCOUNTS FOR HOUSING SUBSIDIES A SLEW OF CONTRACTS WITH LANDLORDS AND HOUSING AUTHORITIES EXPIRES IN FISCAL 1996 WHEN THE GOVERNMENT RENEWS THEM FOR FIVE OR 15 YEARS DEPENDING ON THE TYPE IT BOOSTS BUDGET AUTHORITY IN THAT ONE YEAR THE OUTLAYS ARE SPREAD OUT OVER YEARS MR CLINTON IS PROPOSING TO INCREASE THE NUMBER OF SUBSIDIZED UNITS BY ABOUT 2 OVER FIVE YEARS BUT MOST OF THE INCREASE REFLECTS THE ACCOUNTING RULE SOME BUDGET ANALYSTS ARE EVEN BEGINNING TO WONDER IF THIS IS ASKING TOO MUCH BOTH ON THE DEFENSE AND DOMESTIC SIDE LOOK AT ALL OF THE POLITICAL AND TERRITORIAL DISPUTES SAYS UNIVERSITY OF MARYLAND BUDGET SCHOLAR ALLEN SCHICK IT'S HARD TO BELIEVE THAT SOMETHING REALLY BAD WON'T HAPPEN AND WITH IT A DECISION TO SPEND MORE ON DEFENSE AND THEN THERE'S MR CLINTON'S AMBITIOUS PLAN TO INCREASE WHAT HE LIKES TO CALL INVESTMENTS HE WANTS TO SHIFT RESOURCES TOWARD THE INVESTMENTS EDUCATION PHYSICAL CAPITAL R&D AND THAT'S ALL IN THE DISCRETIONARY CATEGORY SAYS ECONOMIST BARRY BOSWORTH OF THE BROOKINGS INSTITUTION YET THAT IS WHERE HE AGREED TO THE CAP ON SPENDING I KIND OF WONDER IF HE WILL LIVE WITH THAT FOR HIS FULL TERM MR CLINTON OF COURSE TRIED TO EVADE THE SPENDING CAPS LAST YEAR WITH HIS ECONOMICSTIMULUS PACKAGE BUT CONGRESS REFUSED THERE IS SOME SEEPAGE THIS YEAR DESPITE THE EFFORTS OF SOME REPUBLICANS CONGRESS IS TREATING THE CALIFORNIA EARTHQUAKE AS AN EMERGENCY WHICH MEANS IT DOESN'T HAVE TO CUT SOMEWHERE ELSE TO MAKE ROOM FOR EARTHQUAKE AID UNDER THE CAPS THE SENATE YESTERDAY APPROVED 101 BILLION IN SPENDING FOR QUAKE AID PEACEKEEPING COSTS AND OTHER EMERGENCY SPENDING AND VOTED TO OFFSET ONLY 34 BILLION OF THAT BY RESCINDING PAST APPROPRIATIONS FOR NEXT YEAR MR CLINTON PROJECTS THAT OUTLAYS FOR DOMESTIC AND DEFENSE DISCRETIONARY SPENDING WILL COME IN JUST UNDER THE CAP AND ACTUALLY FALL BY 77 BILLION WITHOUT MAKING AN ADJUSTMENT FOR INFLATION THAT HASN'T HAPPENED SINCE 1969 DOMESTIC OUTLAYS ARE TO RISE BY 28 BILLION DEFENSE AND FOREIGN AID TO FALL BY 105 BILLION DOMESTIC DISCRETIONARY SPENDING IS GOING UP DEFENSE THEY ARE CUTTING IN A MANNER INCONSISTENT WITH A WORLDWIDE FORCE COMPLAINS REP CHRISTOPHER COX R CALIF OTHER REPUBLICANS CHARGE THAT MR CLINTON CHEATED AROUND THE EDGES PARTLY BY PROPOSING 14 BILLION IN HIGHER FEES FOR NATIONAL PARKS BANKRUPTCY FILINGS MEAT INSPECTIONS AND THE LIKE WHAT IF THE SPENDING EXCEEDS THE CAP WELL IT PROBABLY WILL IN 1995 BECAUSE IT'S THE RESULT OF A FORMALLY DECLARED EMERGENCY THE EARTHQUAKE THERE'S NO PROBLEM UNDER THE BUDGET RULES IF IT HAPPENS FOR ANY OTHER REASON THEN THE LAW TRIGGERS AUTOMATIC SPENDING CUTS TO MAKE SURE THE CAPS WORK BUT THE BIG PROBLEM ISN'T DISCRETIONARY SPENDING FOCUSING ON THIS SECTOR OF THE FEDERAL BUDGET WHILE IMPORTANT WILL DISTRACT FROM THE LARGER 50 OF THE BUDGET THAT GOES FOR ENTITLEMENT PROGRAMS THE REPUBLICAN STAFF OF THE SENATE BUDGET COMMITTEE SAYS IN ITS ANALYSIS OF THE CLINTON BUDGET AND IT IS IN THIS SECTOR THAT THE ADMINISTRATION LACKS COURAGE OVER THE NEXT FIVE YEARS EVEN ASSUMING THAT MR CLINTON'S HEALTH PLAN PASSES AND WORKS AS HE PREDICTS SPENDING ON FEDERAL BUDGET PROGRAMS WILL CLIMB BY 325 BILLION OR 29 TO 11 TRILLION IN FISCAL 1999 A 29 INCREASE OUTLAYS FOR MEDICARE ALONE ARE PROJECTED TO RISE BY 74 BILLION OR 53 WHAT HAPPENED IN THE '70S SAYS STANFORD UNIVERSITY ECONOMIST JOHN COGAN A REAGAN ADMINISTRATION BUDGET OFFICIAL WAS THAT WE RESTRAINED DISCRETIONARY APPROPRIATIONS PRETTY WELL BUT WE BALLOONED ENTITLEMENTS FOOD STAMPS SUPPLEMENTAL SECURITY INCOME MEDICAID MEDICARE IN THE 1990S HE SAYS WE SEE RESTRAINT ON THE DISCRETIONARY SIDE OF THE BUDGET BECAUSE OF THE CAPS BUT WE ALSO SEE WHAT APPEAR TO BE PROPOSALS FOR NEW ENTITLEMENTS AND THAT'S IN HEALTH CARE WHERE MR CLINTON IS PROPOSING TO GUARANTEE A GENEROUS HEALTHINSURANCE PACKAGE TO EVERY AMERICAN FAMILY EVEN IF THE GOVERNMENT HAS TO PAY FOR IT 9402110058 940211 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN STUNG BY EUROPEAN PARLIAMENT ACCUSATIONS OF FOOTDRAGGING THE EUROPEAN UNION'S SINGLEMARKET COMMISSIONER VOWED TO PUSH EU GOVERNMENTS INTO ABOLISHING BORDER CHECKS OF INDIVIDUALS PASSPORT CHECKS HAVE MULTIPLIED SINCE BARRIERS SUPPOSEDLY WERE DROPPED A YEAR AGO THE EU COMMISSION WILL PRESENT MEMBERS WITH MEASURES SETTING CONDITIONS FOR PEOPLE'S FREE MOVEMENT PASSAGE IS IFFY AS MOST OF THE PROPOSALS NEED EU GOVERNMENTS' UNANIMOUS APPROVAL THE MOST CONTROVERSIAL MEASURE WOULD ALLOW FREE TRAVEL THROUGHOUT THE 12NATION BLOC BY NONEU CITIZENS AFTER LEGAL ENTRY BRITAIN WHICH OPPOSES ABOLITION OF BORDER CHECKS ARGUES THAT GUARANTEES OF PEOPLE'S FREE MOVEMENT DON'T APPLY TO NATIONALS OF NONEU COUNTRIES AND CONTENDS PASSPORT CHECKS ARE THUS NEEDED PROBLEMS WITH A CENTRAL COMPUTER SYSTEM DELAYED THE FEB 1 LIFTING OF PASSPORT CONTROLS BY ALL EU COUNTRIES EXCEPT BRITAIN DENMARK AND IRELAND THAT PACT COULD BE IMPLEMENTED BY THE END OF JUNE A PHILIPPINE COMMITTEE IDENTIFIED WAYS TO MAKE UP FOR REVENUES THAT WOULD BE LOST BY SCRAPPING A DEFICITFIGHTING INCREASE IN THE OILPRODUCTS LEVY SUSPENDED FOLLOWING WIDESPREAD PROTESTS AMONG SUBSTITUTE MEASURES THAT COULD BE IMPOSED BY EXECUTIVE ORDER ARE INCREASED MOTORVEHICLE REGISTRATION FEES AN AIRPORT TERMINAL FEE AND A 5 CUT IN GOVERNMENT MAINTENANCE AND OPERATING EXPENSES OTHER REVENUERAISING MEASURES WHICH NEED CONGRESSIONAL APPROVAL INCLUDE BROADENING THE VALUEADDED TAX AND REDUCING THE TAX EXEMPTION FOR MARRIED COUPLES FRENCH AUTO MAKERS AND INSURERS AGREED ON A PLAN TO REDUCE CAR THEFTS AND CLAIMS FOR THEM PRODUCERS WILL INSTALL ANTITHEFT DEVICES IN MOST OF THEIR HIGHEND MODELS ADDING ABOUT 165 TO A CAR'S PRICE IF THIS RESULTS IN FEWER CLAIMS INSURERS WILL REDUCE POLICY PREMIUMS PROPORTIONATELY IN 1992 THE LATEST DATA AVAILABLE 312000 VEHICLES WERE STOLEN IN FRANCE ONLY ONETHIRD OF WHICH WERE RECOVERED AND INSURERS PAID 142 BILLION ON 850000 CLAIMS TOTALING 226 BILLION FOR STOLEN CARS OR ACCESSORIES CLAIMS HAVE DOUBLED SINCE 1990 STEEP INSURANCE PREMIUMS FOR AUTOS FAVORED BY THIEVES HAVE DISCOURAGED CAR PURCHASES HURTING THE ECONOMY AFTER COMMUNICATIONS WORKERS IN RUSSIA BLOCKED TRANSMISSION OF RADIO AND TELEVISION PROGRAMS TO MUCH OF THE VAST COUNTRY THE GOVERNMENT AGREED TO DEMANDS BY THE 950000MEMBER UNION TO MAKE GOOD ON MONTHS OF UNPAID WAGES TECHNICIANS' BRIEF STRIKE SILENCED 40 OF STATE RADIO'S REACH AND BLACKED OUT FAVORITE SHOWS ON THE TWO NATIONWIDE TV NETWORKS THE GOVERNMENT PROMISED TO PAY 43 MILLION IT OWES TO BROADCASTING COMPANIES IT BLAMED A PAYMENT CRISIS AFFECTING MILLIONS OF STATE WORKERS IN SECTORS RANGING FROM MINING TO STEEL ON INSUFFICIENT REVENUE AND A RELUCTANCE TO PRINT MORE MONEY TO AVOID FUELING INFLATION TURKEY PLANS TO ACCELERATE SELLOFFS OF STATE ENTERPRISES PREDICTING PROCEEDS OF 2069 BILLION AND SAVINGS OF 733 BILLION IN OUTLAYS FOR THE FIRMS BY THE END OF 1995 SINCE THE PRIVATIZATION PROGRAM BEGAN IN 1984 ONLY 17 BILLION OF ENTERPRISES OR SHARES HAVE BEEN TURNED OVER TO THE PRIVATE SECTOR WITH NET GOVERNMENT PROCEEDS TOTALING 900 MILLION IN REDIRECTING ITS FOCUS FROM MISMANAGED FIRMS THE AGENCY HAS MARKETED STOCK IN MORE ROBUST OPERATIONS TO HELP FINANCE ROADS DAMS AND WATER PROJECTS BUT AGENCY FINANCING AIDED BY TAXES AND DUTIES HAS BEEN DIVERTED OR USED TO PLUG GOVERNMENT DEFICITS AND THE PROGRAM HAS RUN UP 78 BILLION OF DEBT ISRAEL'S CENTRAL BANK WILL LIBERALIZE FOREIGNEXCHANGE TRANSACTIONS IN A FEW MONTHS ALLOWING BANKS TO SET THEIR OWN CONSTANTLY FLOATING RATES FOR CURRENCIES AGAINST THE SHEKEL AND COMPETE FOR CUSTOMERS NOW THE BANK OF ISRAEL SETS EXCHANGE RATES ONCE A DAY WITH COMMERCIAL BANKS SERVING ONLY AS ORDER CONDUITS THE NEW SYSTEM COMMON IN DEVELOPED ECONOMIES IS PART OF REFORMS TO REDUCE THE CENTRAL BANK'S ROLE IN CURRENCY TRADING AND MAKE THE SHEKEL FULLY CONVERTIBLE THE SALE OF A CONFECTIONER POIANAPRODUSE ZAHAROASE SA MARKED THE START OF BIG INDUSTRIAL PRIVATIZATIONS IN ROMANIA KRAFT JACOBS SUCHARD THE SWISS UNIT OF PHILIP MORRIS COS OF THE US ACQUIRED 82 OF POIANA FOR 44 MILLION AND PLANS TO INVEST 17 MILLION OVER FIVE YEARS TO MODERNIZE THE COMPANY AND INCREASE ITS PRODUCTION CAPACITY THE REMAINING 18 WILL BE OFFERED TO POIANA EMPLOYEES SINCE ROMANIA'S AUTHORITARIAN REGIME COLLAPSED IN DECEMBER 1989 ONLY SMALL COMPANIES MOSTLY RESTAURANTS AND HOTELS HAVE BEEN PRIVATIZED CORRUPTION CHARGES HALTED A SELLOFF OF PETROMIN THE STATE'S BIG SHIPPING CONCERN PRESSURED BY INTERNATIONAL LENDING ORGANIZATIONS THE GOVERNMENT HAS VOWED TO COMPLETE 2000 PRIVATIZATIONS THIS YEAR OR ALMOST FIVE TIMES THE TOTAL SINCE ROMANIA BEGAN PURSUING A MARKET ECONOMY AN ATHENS PROSECUTOR FILED FELONY CHARGES AGAINST A GRAPHICDESIGN FIRM THAT RAISED MONEY TO PAY ITS DEBTS BY ALLEGEDLY PRINTING FORGED BONDS OF GREECE'S NATIONAL MORTGAGE BANK SPAIN SAID GROSS INCOME FROM TOURISM LAST YEAR ROSE 12 TO 1782 BILLION FROM A YEAR EARLIER 9402110057 940211 BUSINESS BRIEF LAIDLAW INC PURCHASE OF FOUR COMPANIES EXPANDS BUSINESS IN US LAIDLAW INC SAID IT BOUGHT FOUR AMBULANCE COMPANIES ACCELERATING THE COMPANY'S PUSH INTO THE US HEALTHCARE TRANSPORTATION BUSINESS TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED LAIDLAW SAID THE FOUR COMPANIES WITH COMBINED REVENUE OF 45 MILLION A YEAR HAVE OPERATIONS IN AND AROUND GRAND RAPIDS MICH DALLAS DENVER AND GLENDALE CALIF LAIDLAW IN BURLINGTON ONTARIO FACING A PROFIT MARGIN SQUEEZE IN ITS BIGSOLID AND HAZARDOUSWASTE OPERATIONS FIRST MOVED INTO THE MEDICALTRANSPORT FIELD LAST JUNE WITH THE LATEST ACQUISITIONS THE COMPANY SAID IT NOW GENERATES 125 MILLION OF ANNUAL REVENUE FROM THIS INDUSTRY IT ALSO HAS INTERESTS IN SCHOOLBUS TRANSPORTATION LAIDLAW HAD TOTAL REVENUE OF 199 BILLION IN THE FISCAL YEAR ENDED AUG 31 9402110054 940211 LETTERS TO THE EDITOR DOLPHINS PROSPERED AS RESULT OF SALE CONCERNING YOUR JAN 28 PAGEONE ARTICLE ON THE ROBBIES' SALE OF THE MIAMI DOLPHINS TO WAYNE HUIZENGA AS THE PERSON CLOSEST TO JOE ROBBIE'S FINANCES PRIOR TO HIS DEATH AND TO THE DOLPHINS AND JOE ROBBIE STADIUM FINANCES AFTER HIS DEATH I SUBMIT THE FOLLOWING AFTER JOE ROBBIE'S DEATH IN 1990 THE ROBBIE TRUSTEES DID NOT CLOSE A TRANSACTION WITH M HUIZENGA THAT THEIR FATHER WOULDN'T MR ROBBIE REALIZED THAT HE NEEDED AN EQUITY INVESTMENT IN HIS TEAM AND STADIUM HAD HE NOT DIED HE WOULD HAVE COMPLETED THE HUIZENGA TRANSACTION TIME HAS PROVEN THAT MR ROBBIE AND THE TRUSTEES MADE THE RIGHT MOVE BY BRINGING IN MR HUIZENGA AS A PARTNER THE TEAM AND STADIUM HAVE COME FROM A DISMAL FINANCIAL CONDITION AT MR ROBBIE'S DEATH TO A SOUND CONDITION IN 1993 THE DOLPHINS WILL SHOW A PROFIT IN 1993 NOT THE 7 MILLION LOSS REPORTED BY YOUR SOURCE TEAM PLAYER SALARIES WERE NINTH HIGHEST OF THE 28 NFL TEAMS THE ROBBIE TRUSTEES HAVE WORKED DILIGENTLY TO MAKE THE TEAM AND STADIUM SUCCESSFUL FOR THEIR COLLECTIVE FAMILY INTERESTS THE SALE OF THE DOLPHINS TO MR HUIZENGA WAS THE PRUDENT STEP FOR THE TRUSTEES AND THE SALE WILL WITHSTAND SCRUTINY 9402110053 940211 BUSINESS BRIEF PENNSYLVANIA & SOUTHERN GAS CO HOLDERS CLEAR PACT TO MERGE WITH UTILITYHOLDER NUI PENNSYLVANIA & SOUTHERN GAS CO PHILADELPHIA SAID ITS SHAREHOLDERS APPROVED THE COMPANY'S AGREEMENT AND PLAN OF MERGER WITH NUI CORP IN A STATEMENT PENNSYLVANIA & SOUTHERN GAS SAID OF THE 843 OF THE SHARES VOTING 838 APPROVED THE MERGER CONSUMMATION OF THE MERGER IS SUBJECT TO CERTAIN REGULATORY APPROVALS AS REPORTED UTILITY HOLDING COMPANY NUI AGREED TO ACQUIRE THE GAS CONCERN IN A STOCK TRANSACTION VALUED AT ABOUT 17 MILLION NUI IS BASED IN BEDMINSTER NJ UNDER THE AGREEMENT EACH PENNSYLVANIA & SOUTHERN GAS HOLDER WILL RECEIVE NO LESS THAN 24 AND NO MORE THAN THREE NUI COMMON SHARES FOR EACH PENNSYLVANIA SHARE HELD NUI SHARES WERE AT 2650 DOWN 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING 9402110052 940211 INTERNATIONAL VOLVO SELLS ITS STAKE IN CUSTOS STOCKHOLM AB VOLVO THE SWEDISH AUTOMOTIVE GROUP SAID IT SOLD ITS ENTIRE STAKE IN INVESTMENT COMPANY AB CUSTOS RESULTING IN A CAPITAL GAIN OF APPROXIMATELY 916 MILLION KRONOR 114 MILLION THE TRANSACTION IS PART OF VOLVO'S CONCENTRATION ON ITS CORE OPERATIONS AND A WAY OF REDUCING OUR DEBT SAID VOLVO CHIEF EXECUTIVE OFFICER SOEREN GYLL IN A STATEMENT WE BELIEVE THAT BROADER DISTRIBUTION OF CUSTOS'S SHARES WILL BENEFIT CUSTOS VOLVO SAID THE SHARES WERE SOLD TO SWEDISH AND FOREIGN INSTITUTIONS VOLVO'S HOLDING IN CUSTOS AMOUNTED TO 10548445 CLASS A SHARES AND 1474682 CLASS B SHARES CORRESPONDING TO 254 OF THE SHARE CAPITAL AND 291 OF THE VOTING RIGHTS THE TOTAL SALE PRICE FOR THE SHARES WAS 174 BILLION KRONOR VOLVO SAID 9402110051 940211 COLGATEPALMOLIVE BUYBACK NEW YORK COLGATEPALMOLIVE CO AUTHORIZED REPURCHASE OF AS MANY AS FIVE MILLION COMMON SHARES ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE GLOBAL CONSUMERPRODUCTS COMPANY HAS ABOUT 148 MILLION SHARES OUTSTANDING 9402110049 940211 WINTER OLYMPICS 1993 LILLEHAMMER NORWAY TV HIGHLIGHTS BY LEE LESCAZE PLUMP UP THE COUCH PILLOWS OLYMPICS FANS CBS WILL BROADCAST 119 1/2 HOURS OF THE WINTER GAMES STARTING WITH THE OPENING CEREMONIES TOMORROW NIGHT IF THAT ISN'T ENOUGH NEVER FEAR TNT WILL CARRY 45 HOURS DURING THE WEEKDAYS WHILE CBS IS REWAXING ITS SKIS AND POLISHING THE RUNNERS OF ITS LUGE GREG GUMBEL WILL BE THE PRIMETIME ANCHOR DOING HIS FIRST OLYMPICS MR GUMBEL HAS MADE NO SECRET OF HIS DISLIKE OF COLD WEATHER AND UNFAMILIARITY WITH WINTER SPORTS BUT MOST AMERICANS HAVEN'T RIDDEN A BOBSLED OR TRIED A SKI JUMP EITHER AS FOR THE COLD WELL THE CBS BROADCAST GUIDE NOTES THAT FEBRUARY TEMPERATURES IN LILLEHAMMER HAVE BEEN KNOWN TO DROP TO 10 DEGREES FAHRENHEIT WHICH MEANT AN OUTDOOR HOST LOCATION FOR CBS SPORTS' PRIMETIME BROADCASTS WAS NOT FEASIBLE LUCKY GREG FOR THE FIRST TIME AT AN OLYMPICS TINY CAMERAS WILL BE MOUNTED ON THE HELMET OF THE US HOCKEY TEAM'S GOALIE AND ON THE LUGE RIDDEN BY AMERICAN DUNCAN KENNEDY AND FOR BLIMP LOVERS THERE WILL BE AERIAL SHOTS WEATHER PERMITTING THANKS TO TONYA HARDING AND NANCY KERRIGAN THE TV AUDIENCE FOR THESE OLYMPICS COULD WELL SET RECORDS YOU CAN BET CBS ANCHORS WON'T STOP PROMOTING THE WOMEN'S FIGURE SKATING WHICH DOESN'T START UNTIL FEB 23 RIVAL NETWORKS SEEM TO HOPE SNOWEDUNDER AMERICANS WILL BE TEMPTED AWAY FROM THE OLYMPICS BY WARMWEATHER FARE SEVERAL OF FOX'S REGULAR SERIES WILL HAVE TROPICAL LOCALES NOT TO MENTION TWO WEEKS OF WILD ADVENTURES IN PARADISE ABC WILL ATTEMPT TO RAISE MALE TEMPERATURES WITH SPORTS ILLUSTRATED SWIMSUIT '94 NBC IS KEEPING COOL BUT OFFERING A HOST OF SPECIALS FROM THE NBA ALLSTAR GAME TO DANIELLE STEEL'S ONCE IN A LIFETIME BESIDES A TORCH A KING TROLLS AND A GIANT EGG THE OPENING CEREMONIES WILL INCLUDE ONE OF THE NEWPRODUCT PLACEMENT COUPS OF ALL TIME SNOWRUNNER INC A STARTUP COMPANY IN ST PAUL MINN MARKETS A PRODUCT CALLED A SNOW SKATE A BOOT WITH A RUNNER ON THE BOTTOM THAT'S A BIT LIKE A ROLLERBLADE FOR THE SLOPES DURING THE CEREMONIES 110 NORWEGIAN MILITARY OFFICERS WILL USE SNOWRUNNERS TO DESCEND THE SKI JUMP HILL IN FORMATION A SPECTACLE THAT WILL BE BEAMED TO SOMETHING LIKE 25 BILLION PEOPLE WORLDWIDE CBS 8 PM11 PM 9402110048 940211 NATIONAL GOLF BUYS COURSE PHOENIX NATIONAL GOLF PROPERTIES INC ACQUIRED THE EL DORADO LAKES GOLF COURSE IN GILBERT ARIZ FROM A PHOENIX INVESTOR GROUP TERMS WEREN'T DISCLOSED NATIONAL GOLF PROPERTIES SAID AMERICAN GOLF SANTA MONICA CALIF WILL LEASE THE GOLF COURSE AND ADD IT TO ITS PHOENIX AREA CENTRAL RESERVATION SYSTEM 9402110047 940211 YOUR MONEY MATTERS WEEKEND REPORT CHECK THE PAST WHEN INVESTING FOR THE FUTURE BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'VE BEEN DILIGENTLY SAVING FOR RETIREMENT FOR YOUR CHILDREN'S EDUCATION OR TO REACH SOME OTHER LONGTERM GOAL IT MAY BE TIME TO REVISE YOUR INVESTMENT ASSUMPTIONS BECAUSE OF LOWER INTEREST RATES MANY OF THE LONGTERMPLANNING ASSUMPTIONS PEOPLE MADE DURING THE PAST DECADE ARE NO LONGER VALID MOST GENERALS ARE ALWAYS FIGHTING THE LAST WAR AND THAT INCLUDES PORTFOLIO GENERALS SAYS LAURENCE B SIEGEL OF IBBOTSON ASSOCIATES A CHICAGO FINANCIALRESEARCH AND CONSULTING FIRM JUST ASK INVESTORS WHO EXPECTED TO RETIRE ON THEIR BOND PORTFOLIOS BUT SAW THEIR INCOME HALVED AS INTEREST RATES PLUMMETED AND THE BONDS WERE CALLED OR ASK THE PEOPLE WHO BOUGHT CASHVALUE LIFEINSURANCE POLICIES BASED ON INVESTMENTRETURN PROJECTIONS OF 10 11 OR EVEN 12 AND THEN FACED MUCH HIGHER PREMIUMS AS ACTUAL RETURNS DWINDLED PETER KATT A WEST BLOOMFIELD MICH FEEONLY LIFEINSURANCE ADVISER RECALLS ONE CLIENT WHO CAME TO HIM WITH A 6 MILLION WHOLELIFE POLICY BOUGHT IN 1988 THE CLIENT HAD BEEN TOLD IT WOULD TAKE SEVEN ANNUAL PAYMENTS OF 118600 BEFORE THE POLICY HAD ENOUGH CASH VALUE TO PAY ITS OWN PREMIUMS FROM DIVIDENDS NOW THE INSURER TELLS HIM IT WILL TAKE 15 YEARS OF PREMIUMS TO MAKE THE POLICY WORK AS PLANNED THE PROBLEM SAYS MR KATT IS THAT THE CLIENT BOUGHT HIS POLICY AT A TIME OF VERY HIGH FIXEDINCOME RETURNS AND DIDN'T ALLOW FOR THE FACT THAT PERFORMANCE COULD DROP BACK TO HISTORICAL NORMS INDEED HISTORY PROVIDES AN IMPORTANT REALITYCHECK WHEN FIGURING LONGTERM PLANS AFTER THE HEADY GAINS OF RECENT YEARS IT'S SOBERING TO KNOW FOR EXAMPLE THAT SINCE 1926 LONGTERM BONDS HAD COMPOUND AVERAGE TOTAL RETURNS INCLUDING PRICE CHANGES PLUS INCOME OF JUST 5 A YEAR DURING THE SAME PERIOD LONGTERM INTEREST RATES AVERAGED 52 WHILE TOTAL RETURNS ON STOCKS AVERAGED 103 A YEAR COMPOUNDED IN OTHER WORDS THE PEOPLE WHO BOUGHT AN INSURANCE POLICY BASED ON THE ASSUMPTION OF 12 FIXEDINCOME RETURNS WERE THUMBING THEIR NOSES AT HISTORY WITH A LOT OF LUCK THOSE POLICIES MIGHT HAVE MET THOSE EXPECTATIONS BUT THE ODDS WERE AGAINST IT PARTICULARLY GIVEN THE LONGTERM NATURE OF A LIFEINSURANCE POLICY OF COURSE IT IS EASY TO OVERSIMPLIFY YES ON AVERAGE BONDS' COMPOUND RETURNS WERE 5 BUT ACTUAL RETURNS RANGED FROM MINUS 92 IN 1967 WHEN BONDHOLDERS SAW BIG LOSSES TO A WHOPPING 404 IN 1982 THE SAME IS TRUE FOR THE STOCK MARKET THE 103 COMPOUND AVERAGE INCLUDES A DISMAL LOSS OF 433 IN 1931 AND A RECORDSETTING GAIN OF 54 IN 1933 BUT BECAUSE RETURNS TEND TO REVERT TO THE MEAN OVER TIME THE HISTORICAL AVERAGES DO PROVIDE SOME REASONABLE YARDSTICKS TO ESTIMATE FUTURE RETURNS MR SIEGEL RECOMMENDS USING AVERAGE HISTORICAL RETURNS RATHER THAN COMPOUND AVERAGES THAT HELPS ADJUST YOUR INVESTMENT PLANS FOR THE RISK THAT RETURNS IN INDIVIDUAL YEARS MAY BE A LOT LOWER OR HIGHER THAN THE AVERAGE HE SAYS BY THIS MEASURE STOCKS LOOK EVEN MORE ATTRACTIVE IN 68 YEARS OF PERFORMANCE AVERAGE ANNUAL RETURNS ON STOCKS HAVE BEAT THOSE OF BONDS BY ABOUT 72 PERCENTAGE POINTS MR SIEGEL SAYS THE MARKET'S CURRENT EXPECTATION FOR BOND RETURNS AS REFLECTED IN THE YIELD ON THE 30YEAR TREASURY BOND IS 65 THAT SUGGESTS AN ANNUAL RETURN OF 137 FOR STOCKS HE SAYS THE HISTORICAL AVERAGES ALSO SHOW THAT LONGTERM BONDS HAVE TENDED TO YIELD 15 PERCENTAGE POINTS MORE THAN SHORTTERM MONEYMARKET INVESTMENTS WHILE MONEYMARKET RETURNS HAVE AVERAGED ROUGHLY A HALF PERCENTAGE POINT OVER INFLATION WITH INFLATION NOW RUNNING AT ABOUT 3 THESE RELATIONSHIPS DON'T QUITE LINE UP WITH TODAY'S REALITY BUT THEN CURRENT COMPARISONS RARELY JIBE WITH THE LONGTERM AVERAGES THESE ARE SIMPLY HISTORICAL NUMBERS AND WE BELIEVE THAT THE ECONOMIC RELATIONSHIPS THAT CAUSED THEM TO OCCUR IN THE PAST ARE STILL THERE MR SIEGEL SAYS THE LINK BETWEEN INVESTMENT RETURNS AND INFLATION IS A PARTICULARLY IMPORTANT PART OF ANY INVESTMENT ANALYSIS PEOPLE OFTEN MAKE THE MISTAKE OF CONSIDERING ONLY NOMINAL RETURNS FORGETTING TO SUBTRACT BOTH THE INFLATION RATE WHICH HAS AVERAGED 32 A YEAR DURING THE PAST 68 YEARS AND THE IMPACT OF TAXES IF YOU DO YOU'LL FIND THAT A 5 RETURN WITH 3 INFLATION IS ACTUALLY BETTER THAN A 10 RETURN WITH 8 INFLATION THAT'S BECAUSE SOMEONE PAYING FOR EXAMPLE 20 TAXES ON A 5 RETURN WOULD PAY ONE PERCENTAGE POINT IN TAX LEAVING THEM AHEAD OF INFLATION BY ONE PERCENTAGE POINT BUT THE SAME TAX ON A 10 RETURN WOULD COST TWO PERCENTAGE POINTS IN TAX LEAVING THE INVESTOR WITH AN 8 RETURN ONLY ENOUGH TO KEEP PACE WITH INFLATION FOR LONGTERM PLANNING ONE APPROACH IS TO CALCULATE AHEAD OF TIME HOW MUCH YOU NEED TO EARN OVER INFLATION TO ACHIEVE YOUR GOALS THEN BY LOOKING AT THE HISTORICAL RELATIONSHIPS BETWEEN VARIOUS INVESTMENTS AND INFLATION YOU CAN FIGURE OUT WHERE YOU SHOULD INVEST THIS KIND OF ANALYSIS OFTEN LEADS PEOPLE TO THE STOCK MARKET SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS AFFLUENT INDIVIDUALS SELECT MONEY MANAGERS ANY TIME YOU MAKE A DECISION THAT YOU ARE GOING TO INCREASE YOUR NET WORTH ON AN AFTERTAX BASIS IT WILL TAKE YOU INTO THE EQUITY MARKET HE SAYS BUT THEN YOU NEED TO FACTOR IN THE EMOTIONAL STRESS BASED ON HISTORICAL RETURNS WE ALL KNOW WE SHOULD HAVE OUR MONEY IN SMALL CAPITALIZATION AND AGGRESSIVEGROWTH STOCKS ADDS MR STOLPER BUT MOST OF US ARE ILLPREPARED TO DEAL WITH THAT VOLATILITY HOW YOU USE HISTORICAL DATA ALSO DEPENDS ON WHAT YOU ARE TRYING TO EVALUATE AND WHERE YOU ARE IN THE MARKET CYCLE WHEN PRICING LIFEINSURANCE POLICIES FOR EXAMPLE MR KATT ALWAYS LIKES TO WORK WITH THE MOST CONSERVATIVE NUMBERS IN PROJECTING RETURNS THUS MINIMIZING THE RISK OF COMING UP SHORT AS A RESULT HE LOOKS AT HISTORICAL RETURNS DURING TIMES WHEN RATES ARE RISING WHEN RATES ARE FALLING HE USES THAT DOWNWARD TREND TO PROJECT FUTURE RETURNS WILLIAM G BRENNAN A TAX AND FINANCIAL ADVISER IN WASHINGTON DESCRIBES HIS PLANNING PROCESS AS LOOKING BACK AND FORWARD AT THE SAME TIME TO COME UP WITH A WORKING BALANCE PAST PERFORMANCE IS A REASONABLE INDICATOR JUST BE PREPARED TO ADJUST IT AS TIME GOES BY HE SAYS HIS CURRENT ASSUMPTIONS INFLATION RUNNING AT 3 OR 4 A LADDERED PORTFOLIO OF LONGERTERM FIXED INCOME INVESTMENTS RETURNING 6 TO 7 AND EQUITIES RETURNING ABOUT 10 ANOTHER WAY OF USING HISTORY IS TO DO A PEAKTOTROUGH COMPARISON OF ANY INVESTMENT YOU ARE CONSIDERING FIND OUT WHAT IS THE WORST THING THAT CAN HAPPEN TO YOU BECAUSE IT IS LIKELY TO HAPPEN AGAIN SAYS MR STOLPER THE SAN DIEGO CONSULTANT THAT WAY HE SAYS YOU'LL UNDERSTAND THE FULL RANGE OF POSSIBLE CONSEQUENCES OF THE INVESTMENT CHOICES YOU'RE WEIGHING 9402110046 940211 CENTURY TELEPHONE ACQUISITION MONROE LA CENTURY TELEPHONE ENTERPRISES INC SAID IT COMPLETED ITS ACQUISITION OF CELUTEL INC FOR CASH AND STOCK CENTURY PAID 514 MILLION IN CASH PLUS 19 MILLION CENTURY COMMON SHARES CENTURY SAID THE PURCHASE PRICE IS EQUIVALENT TO 3699 CASH PLUS 0149 SHARES OF CENTURY COMMON STOCK FOR EACH COMMON SHARE OF CELUTEL CENTURY SAID IT WILL ALSO ASSUME 417 MILLION IN CELUTEL DEBT 9402110045 940211 SEQUENT SAYS IT'S OPEN TO USE IN COMPUTERS OF POWERPC CHIP BEAVERTON ORE SEQUENT COMPUTER SYSTEMS INC WHICH USES INTEL CORP CHIPS IN ITS MINICOMPUTERS IS OPEN TO THE IDEA OF BASING FUTURE PRODUCTS ON THE NEW POWERPC CHIP MADE BY INTEL RIVALS SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CASEY POWELL WE'RE ALWAYS OPEN TO THAT WE'RE NOT LOCKED INTO INTEL SAID MR POWELL A FORMER INTEL EXECUTIVE WHO LEFT THE COMPANY A DECADE AGO TAKING 16 COLLEAGUES WITH HIM TO START SEQUENT SEQUENT STRINGS INTEL CHIPS TOGETHER TO BUILD MULTIPROCESSING COMPUTERS THAT RIVAL MAINFRAMES IN POWER BUT COST MUCH LESS AT 50000 TO 2 MILLION EACH POWERPC HAS A POTENTIAL TO BE AN ALTERNATIVE TO INTEL I THINK IT'S GOING TO BE A TWOHORSE RACE MR POWELL SAID IN AN INTERVIEW BUT HE SAID HE'S NOT WORKING ON SWITCHING TO POWERPC AND HE'S NOT IN TALKS WITH APPLE COMPUTER INC MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CO THE ALLIANCE MAKING POWERPC MR POWELL SAID SEQUENT HAS INCREASED MARKET SHARE FOR SYSTEMS THAT COST OVER 700000 TO 38 IN 1993 FROM 203 IN 1992 BUT GROSS MARGINS WHICH WERE 48 IN THE FOURTH QUARTER ENDED DEC 31 WILL LIKELY SLIP IN THE SINGLE DIGITS THIS YEAR HE SAID I JUST DON'T KNOW HOW MANY DIGITS HE SAID HE WOULDN'T COMMENT ON ANALYSTS' EXPECTATIONS THAT SEQUENT WILL HAVE FLAT TO SLIGHTLY INCREASED FIRSTQUARTER EARNINGS OF 12 TO 15 CENTS A SHARE IN THE YEAREARLIER QUARTER ENDED APRIL 3 SEQUENT EARNED 34 MILLION OR 12 CENTS A SHARE ON REVENUE OF 776 MILLION FOR THE MOST RECENT QUARTER ENDED JAN 1 SEQUENT POSTED A NET LOSS OF 151 MILLION OR 50 CENTS A SHARE AFTER A 223 MILLION RESTRUCTURING CHARGE DURING THE RESTRUCTURING SEQUENT LAID OFF 85 WORKERS AND FORMED TWO BUSINESS UNITS ONE TO SELL HARDWARE AND A BUSINESSSOLUTIONS DIVISION CALLED ENTERPRISE WHICH DESIGNS AND INSTALLS NEW COMPUTER ARCHITECTURES THAT USE SEQUENT HARDWARE AND SYSTEMS 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 9402110044 940211 SHAKY START WHY CLINTONS' EFFORT TO WOO BIG BUSINESS TO HEALTH PLAN FAILED LOBBYING COULDN'T OVERCOME MANY EXECUTIVES' FEARS OF RISING REGULATION PIVOTAL VOTE BY ROUNDTABLE BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON STARING INTO A SEA OF BUSINESS SUITS HILLARY RODHAM CLINTON MADE A PITCH LAST SEPTEMBER TO A ROOMFUL OF CHIEF EXECUTIVES TO SUPPORT THE FARREACHING HEALTHCARE BILL THAT THE WHITE HOUSE WAS PREPARING TO SEND TO CAPITOL HILL I WANT TO BEGIN BY READING YOU WHAT WE BELIEVE IN SHE TOLD THE MEETING OF THE BUSINESS ROUNDTABLE'S POLICY COMMITTEE SHE SPOKE OF GIVING EVERY AMERICAN ACCESS TO HEALTH CARE AND OF REINING IN SPIRALING MEDICAL COSTS SHE CALLED FOR BUILDING ON AND ENHANCING THE PRIVATE SYSTEM IF THESE SOUND FAMILIAR TO YOU THE FIRST LADY ADDED IT'S BECAUSE THEY'RE YOUR PRINCIPLES MANY OF THE CORPORATE CHIEFTAINS WERE IMPRESSED SHE DID A WONDERFUL JOB SAYS JOHN ONG CHAIRMAN OF BF GOODRICH CO AND HEAD OF THE ROUNDTABLE BUT FIVE MONTHS LATER THE ADMINISTRATION'S APPEALS TO BIG BUSINESS HAVE BLOWN UP IN ITS FACE JUST LAST WEEK THE SAME ROUNDTABLE POLICY COMMITTEE VOTED 60 TO 20 TO SUPPORT A RIVAL HEALTHCARE PLAN BY REP JIM COOPER A TENNESSEE DEMOCRAT WITHIN THREE DAYS TWO OTHER MAJOR GROUPS THE US CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS PUBLICLY DENOUNCED THE CLINTON PLAN THE CLINTON CAMP'S FAILURE TO WIN OVER THE CORPORATE COMMUNITY DESPITE ITS CONCERTED EFFORT IS DUE BOTH TO ITS OWN POLITICAL MISSTEPS AND TO EARLY POSTURING BY BUSINESSES EAGER TO GET CHANGES IN THE CLINTON PLAN BUT ABOVE ALL IT BOILS DOWN TO A VISCERAL FEELING AMONG MANY EXECUTIVES THAT DESPITE THE CLINTONS' CLAIMS TO THE CONTRARY THE ADMINISTRATION IS PROPOSING A BIGGOVERNMENT SOLUTION TO A PROBLEM BETTER LEFT TO THE MARKET AT A WHITE HOUSE MEETING LAST WEEK WITH PRESIDENT AND MRS CLINTON PAUL O'NEILL CHAIRMAN OF ALUMINUM CO OF AMERICA BLUNTLY CALLED THE ADMINISTRATION PLAN A VERTICAL DIVE INTO FEDERALIZATION ON ITS FACE THE CLINTON BILL WOULD SEEM A BOON FOR BIG BUSINESS BUT MANY OF THE FEATURES THAT THE WHITE HOUSE THOUGHT LARGE CORPORATIONS WOULD LOVE ARE INSTEAD LEAVING THEM GRUMBLING FOR EXAMPLE BY GUARANTEEING ALL AMERICANS COMPREHENSIVE HEALTH COVERAGE THE CLINTON PLAN WOULD ALLEVIATE THE BURDEN OF COST SHIFTING IN WHICH LARGE COMPANIES THAT INSURE THEIR WORKERS WIND UP BEARING THE COST OF CARE FOR THE UNINSURED A NEW BROOKINGS INSTITUTION STUDY FOUND THAT MANUFACTURERS' HEALTHINSURANCE BILLS WOULD DROP BY 1349 A WORKER BUT PEPSICO INC AND GENERAL MILLS INC BOTH OF WHICH HAVE RESTAURANTCHAIN SUBSIDIARIES WITH LOTS OF PARTTIME WORKERS HAVE BEEN OPPOSING THE PLAN'S REGULATIONS INCLUDING THE MANDATE THAT ALL BUSINESSES MUST HELP PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE IN EARLY DECEMBER GENERAL MILLS CHAIRMAN H BREWSTER ATWATER WROTE TO FELLOW CEOS TO URGE THEM TO SUPPORT THE COOPER BILL AS THE BEST VIABLE ALTERNATIVE TO THE CLINTON PLAN WHITE HOUSE OFFICIALS CONTEND THAT THIS CAMPAIGN ALONG WITH VIGOROUS OPPOSITION BY INSURANCE AND PHARMACEUTICAL COMPANIES HAS STOKED GENERAL BUSINESS SENTIMENT AGAINST THEIR BILL BY CAPPING THE RATE OF GROWTH IN HEALTHINSURANCE PREMIUMS THE CLINTON PROPOSAL WOULD SAVE THE COMPANIES MORE THAN 90 BILLION A YEAR BY 2004 THE CONGRESSIONAL BUDGET OFFICE CONCLUDED IN AN ANALYSIS THIS WEEK BUT BESIDES DISAGREEING WITH THE MEANS OF ACHIEVING THIS COST REDUCTION PRICE CONTROLS MANY EXECUTIVES ARE JUST NOT CONFIDENT THE CAPS WILL HOLD AND THAT THE PROMISE OF LONGTERM SAVINGS WILL PLAY OUT SAYS RICH OSTUW THE CHIEF ACTUARY FOR HEALTH PLANS AT THE TOWERS PERRIN CONSULTING FIRM AND A WHITE HOUSE ADVISER ON ITS PROPOSAL BY ALLOWING COMPANIES WITH MORE THAN 5000 WORKERS TO OPT OUT OF THE NEW REGIONAL INSURANCEPURCHASING SYSTEM THAT THE PLAN WOULD ESTABLISH THE WHITE HOUSE THOUGHT IT WAS LEAVING BIG COMPANIES FREE TO MANAGE THEIR OWN HEALTH PLANS BUT NOT ONE OF MY FORTUNE 500 COMPANY MEMBERS SAYS IT WILL TAKE ADVANTAGE OF THE PROVISION SAYS JAMES KLEIN EXECUTIVE DIRECTOR OF THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS ONE REASON EVEN CORPORATE GIANTS FEAR BEING MUSCLED OUT OF THE MARKET BY THE BIG REGIONAL ALLIANCES WE'D BE SMALL FISH IN THE SEA SAYS KENNETH PORTER CHIEF ACTUARY AT DUPONT CO COMPANIES ARE ALSO ANNOYED THAT THEY WOULD BE SUBJECT TO A 1OFPAYROLL SURCHARGE IF THEY OPTED OUT OF THE REGIONAL ARRANGEMENT BY HAVING THE GOVERNMENT TAKE OVER 80 OF THE HEALTHINSURANCE COSTS FOR EARLY RETIREES THE ADMINISTRATION PLAN WOULD RELIEVE LARGE COMPANIES OF AN ENORMOUS FINANCIAL BURDEN BUT THIS SWEETENER HAS HELPED TO ENTICE ONLY THE BIG THREE AUTO MAKERS SEVERAL LARGE STEEL COMPANIES AND A FEW OTHERS WITH MOSTLY OLDER WORK FORCES MANY CEOS DOUBT THEIR COMPANIES WOULD BENEFIT VERY MUCH AND ANYWAY THEY SUSPECT WITH GOOD REASON THAT THIS PROVISION CAN'T GET BY CONGRESS THE ADMINISTRATION'S WOOING OF THE BUSINESS ROUNDTABLE BEGAN LONG BEFORE MRS CLINTON'S WELLRECEIVED SPEECH IN SEPTEMBER A YEAR AGO GOODRICH'S MR ONG AND OTHER EXECUTIVES MET WITH THE NEWLY INAUGURATED PRESIDENT AND VICE PRESIDENT GORE THEY ASKED TO BE ALLOWED TO OFFER THEIR HEALTHCARE IDEAS TO THE ADMINISTRATION'S POLICY DRAFTERS MR CLINTON AGREED THAT LED TO AN EARLY MEETING IN WILLIAMSBURG VA WITH MRS CLINTON MR ONG AND ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE CO OF AMERICA AND THE HEAD OF THE ROUNDTABLE'S HEALTHPOLICY TASK FORCE THEN CAME ANOTHER SESSION WITH THE FIRST LADY IN JUNE AND NUMEROUS CONSULTATIONS WITH IRA MAGAZINER CHIEF ARCHITECT OF THE ADMINISTRATION'S PLAN SOME OF THE CORPORATIONS' CONCERNS WERE NARROW CENTERING ON SUCH TECHNICAL ISSUES AS THE WHITE HOUSE DESIRE TO GIVE THE STATES GREAT FLEXIBILITY IN RUNNING THE NEW HEALTH SYSTEM COMPANIES OPERATING THROUGHOUT THE US FEAR DEALING WITH 50 DIFFERENT SETS OF REQUIREMENTS OTHER WORRIES WERE MORE FUNDAMENTAL INCLUDING THAT COMPANIES WOULD END UP CEDING CONTROL OF THEIR HEALTHBENEFITS PROGRAMS TO THE REGIONAL ALLIANCES REDUCING THEIR ROLE TO SIMPLY WRITING CHECKS BUT AFTER ALL THE DISCUSSION MR ONG SAYS CERTAINLY THE STRUCTURE OF THEIR PLAN DOESN'T REFLECT THE VIEW WE PUT FORWARD IN DECEMBER FOLLOWING MRS CLINTON'S TALK TO THE ROUNDTABLE THE GROUP'S HEALTH TASK FORCE HELD A CONFERENCE CALL TO DISCUSS ITS POSITION IN THE INTENSIFYING DEBATE THE PANEL HAD THREE OPTIONS SUPPORT THE CLINTON PLAN SUPPORT THE COOPER BILL OR STAY NEUTRAL WITHIN JUST 45 MINUTES IT VOTED 141 TO FAVOR THE COOPER BILL MANY EXECUTIVES ON THE PHONE INCLUDING FIVE CONSECUTIVE SPEAKERS FROM THE INSURANCE OR PHARMACEUTICAL INDUSTRIES ACCORDING TO ONE LISTENER EXPRESSED DISMAY THAT THE CLINTON PLAN WOULD FORCE TOO MANY REGULATIONS DOWN THEIR THROATS HAVE YOU EVER TRIED TO SWALLOW A WATERMELON ASKS DAVID JONES THE CHAIRMAN OF HUMANA INC THE HOSPITAL CHAIN OTHERS PREFERRED THE COOPER BILL BECAUSE IT UNLIKE MR CLINTON'S OR OTHER REFORM PROPOSALS HAD BIPARTISAN SPONSORSHIP ON CAPITOL HILL THE RECOMMENDATION THEN WENT TO THE 85MEMBER POLICY COMMITTEE WHICH SETS OFFICIAL ROUNDTABLE POSITIONS SOME IN THE WHITE HOUSE WERE WORRIED THEY KNEW THAT PRACTICALLY THEIR ONLY SOLID CORPORATE SUPPORT SO FAR WAS FROM THE AUTO COMPANIES AND STEELMAKERS THE ONLY DISSENTER IN THE 141 VOTE HAD BEEN CHRYSLER CORP SOON THE ADMINISTRATION BEGAN TO FORGE A WORKING RELATIONSHIP WITH LEADERS AT SIX OTHER COMPANIES PRESUMED TO BE SYMPATHETIC TO ITS EFFORTS IN LATE DECEMBER MRS CLINTON INVITED THE SIX TO THE WHITE HOUSE THEY WERE PAUL ALLAIRE OF XEROX CORP A DEMOCRAT CONSIDERED A FRIEND OF BILL EDGAR WOOLARD OF DUPONT THOUGHT TO BE VERY CONCERNED ABOUT COSTSHIFTING GEORGE FISHER OF EASTMAN KODAK CO JOSEPH GORMAN OF TRW INC HAROLD POLING OF FORD MOTOR CO AND EDWIN ARTZT OF PROCTER & GAMBLE CO DURING THE SESSION MRS CLINTON AND MR MAGAZINER SAID THE ADMINISTRATION WANTED TO BEGIN CONSULTING SERIOUSLY WITH BIG BUSINESS TO ADDRESS ITS CONCERNS ABOUT THE HEALTH BILL THEY SUGGESTED SETTING UP A PROCESS BY WHICH STAFFERS OF THE SIX COMPANIES WOULD MEET REGULARLY WITH MR MAGAZINER'S STAFF AND THE TWO ADMINISTRATION OFFICIALS WITH THE CLOSEST TIES TO BUSINESS ROBERT RUBIN THE HEAD OF THE NATIONAL ECONOMIC COUNCIL AND DEPUTY TREASURY SECRETARY ROGER ALTMAN BOTH ONCE SUCCESSFUL INVESTMENT BANKERS THE MEETINGS BEGAN BUT ON JAN 13 AND 14 THE POLICY COMMITTEE TOOK UP THE ISSUE OF THE COOPER ENDORSEMENT IN CONFERENCE CALLS JUST AS THE WHITE HOUSE WAS REALLY TURNING UP THE HEAT VOICE AFTER VOICE SAID OVER THE PHONE LINES I GOT A CALL FROM RUBIN I GOT A CALL FROM ALTMAN I DID TOO RUBIN CALLED ME ABOVE ALL THE ADMINISTRATION OFFICIALS PLEADED WITH THE EXECUTIVES TO DELAY TAKING PUBLIC ACTION UNTIL AFTER THE PRESIDENT'S STATE OF THE UNION SPEECH ON JAN 25 THE VOTE WAS 4514 TO ENDORSE A RESOLUTION SUPPORTING THE COOPER BILL AS A STARTING POINT A SECOND VOTE WAS 3225 TO IGNORE THE WHITE HOUSE APPEALS AND ANNOUNCE THE TALLY IMMEDIATELY WHY SOME THOUGHT SHOULD WE SUBJECT OURSELVES TO MORE PRESSURE BUT ROUNDTABLE LEADERS CONSIDERING THE MAJORITY TOO SMALL DECIDED TO WAIT UNTIL THEIR REGULARLY SCHEDULED FEB 2 MEETING TAKE ANOTHER VOTE AND THEN ANNOUNCE A POSITION BY THEN THE WHITE HOUSE WASN'T ABOUT TO TURN BACK DESPITE SOME OFFICIALS' RESERVATIONS ABOUT ALL THE LOBBYING HAROLD ICKES THE NEW YORK ATTORNEY BROUGHT IN LAST MONTH TO OVERSEE THE SELLING OF THE HEALTHCARE PLAN WAS ONE WITH SERIOUS CONCERNS IF THE AGGRESSIVE ARMTWISTING FAILED IT WOULD ONLY UNDERSCORE THE DEFEAT HE AND SOME OTHERS FEARED BUT SOME THOUGHT THAT THE ADMINISTRATION WOULD BE CRITICIZED FOR FOLDING TOO SOON IF IT DIDN'T GO ALLOUT I THINK IT WOULD HAVE BEEN JUST AS BAD IF NOT WORSE TO HAVE PEOPLE LIKE ONG SAY THEY WEREN'T TALKING TO US SAYS JEFF ELLER A TOP CLINTON HEALTH AIDE KNOWING IT STOOD VIRTUALLY NO CHANCE OF GETTING THE ROUNDTABLE TO BACK THE CLINTON PLAN THE WHITE HOUSE SOUGHT ONLY TO PREVENT THE GROUP FROM PUBLICLY BACKING THE COOPER BILL THE DAY BEFORE THE VOTE MRS CLINTON CALLED ABOUT 10 CEOS TO THE WHITE HOUSE THE PRESIDENT CAME IN AND CHATTED WITH THE GROUP FOR HALF AN HOUR THEN THREE OF THE FRIENDLIER CEOS XEROX'S MR ALLAIRE TRW'S MR GORMAN AND P&G'S MR ARTZT WENT TO CAPITOL HILL WHERE HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI WAS TRYING TO PERSUADE MR ONG PRUDENTIAL'S MR WINTERS AND UNION PACIFIC CORP CHAIRMAN DREW LEWIS TO STAY NEUTRAL AN ARRAY OF ADMINISTRATION OFFICIALS INCLUDING MR ICKES MR MAGAZINER AND SENIOR POLICY ADVISER GEORGE STEPHANOPOULOS LINED THE ROOM TALKING TO COLLEAGUES BACK IN THE WHITE HOUSE MR ICKES LATER CALLED MR WINTERS A 19THCENTURY COAL BARON SENSING DEFEAT A GROUP OF OFFICIALS DECIDED TO SINGLE OUT MR WINTERS PUBLICLY AND SUGGEST THAT THE INSURANCE INTERESTS WERE THE DRIVING FORCE ROBERT BOORSTIN A WHITE HOUSE COMMUNICATIONS OFFICIAL LIT INTO MR WINTERS AT A TELEVISED FORUM WITH WHITE HOUSE COUNSELOR DAVID GERGEN BUT AFTER THEY RETURNED TO THE WHITE HOUSE MR RUBIN AND MR ALTMAN TOLD THEM TO STOP SAYING IT WASN'T WISE FOR THE WHITE HOUSE TO ATTACK PEOPLE BY NAME THAT AFTERNOON THE CEOS TOOK A FINAL VOTE ROY VAGELOS CHAIRMAN OF MERCK & CO WARNED AGAINST TRUSTING THE ADMINISTRATION'S STATEMENTS HE SAID HE WAS STILL DISMAYED BY THE ADMINISTRATION'S HANDLING OF THE ISSUE OF CHILDHOOD IMMUNIZATIONS IT CHARGED THAT HIGH VACCINE PRICES WERE LEAVING CHILDREN UNPROTECTED AND ACCUSED IT OF RENEGING ON A COMPROMISE HE THOUGHT DRUG COMPANIES HAD REACHED LAST YEAR WHAT HAPPENED AFTER THE ROUNDTABLE VOTE WAS PRECISELY WHAT THE WHITE HOUSE FEARED MOST A DOMINO EFFECT THE FOLLOWING MORNING THE CHAMBER OF COMMERCE WHICH HAD BEEN GENERALLY FAVORABLE TOWARD THE CLINTON HEALTHCARE PLAN BOWED TO PRESSURE FROM HOUSE REPUBLICANS AND DELIVERED BLISTERING TESTIMONY AGAINST IT THEN THE NATIONAL ASSOCIATION OF MANUFACTURERS LABELED THE PLAN DEFICIENT IN NUMEROUS SIGNIFICANT AREAS SAYS JERRY JASINOWSKI NAM'S PRESIDENT THE ROUNDTABLE VOTE CERTAINLY CAUSED A NUMBER OF OUR PEOPLE TO FEEL WE OUGHT TO TAKE AN EVEN HARDER LINE ADMINISTRATION OFFICIALS EXPRESS CONFIDENCE THAT IN THE END THEY WILL BE ABLE TO RESOLVE MANY OF THEIR DIFFERENCES WITH BIG BUSINESS AS HEALTHCARE LEGISLATION MOVES THROUGH CONGRESS THEY NOTE THAT BUSINESS SUPPORT FOR THE PRESIDENT'S ECONOMIC PLAN OR AT LEAST THE RANKS OF THOSE WILLING TO HOLD THEIR FIRE GRADUALLY GREW AND EVEN IN BACKING THE COOPER BILL ROUNDTABLE OFFICIALS DISAGREED WITH SOME OF ITS MAJOR PROVISIONS ESPECIALLY A LIMITATION ON EMPLOYERS' ABILITY TO DEDUCT EMPLOYEE HEALTHBENEFIT COSTS I THINK THE DIFFERENCES BETWEEN THE ADMINISTRATION AND THE LARGE BUSINESS GROUPS ARE EXAGGERATED MR ALTMAN SAYS ADDING WE THINK THERE WILL BE MEANINGFUL BUSINESS SUPPORT ONE SOURCE OF THAT MAY BE THE BROADBASED NATIONAL LEADERSHIP COALITION FOR HEALTH CARE REFORM WHICH HAS ENDORSED AN EMPLOYER MANDATE AND UNIVERSAL COVERAGE AMONG ITS BIG CORPORATE MEMBERS ARE CATERPILLAR INC GEORGIAPACIFIC CORP AND HJ HEINZ CO ANOTHER GROUP OF 17 BIG COMPANIES CALLED THE CORPORATE HEALTH CARE COALITION AND INCLUDING MCDONNELL DOUGLAS CORP ALLIEDSIGNAL INC AND ATLANTIC RICHFIELD CO RECENTLY SAID IT IS PREPARED TO ACCEPT AN EMPLOYER MANDATE IN THE RIGHT CONTEXT MOST OF THE CEOS I TALK TO ARE IN FAVOR OF UNIVERSAL COVERAGE AND COST CONTAINMENT MR RUBIN SAYS BUT OPPONENTS OF MR CLINTON'S BILL DON'T AGREE THE SMALLBUSINESS LOBBY WHICH HAS LONG FOUGHT HIS PLAN IS HOPING TO FORGE FORMAL TIES WITH BIG BUSINESS SAYS JOHN MOTLEY OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS MORE THAN 600000 MOMANDPOP FIRMS THEY BRING THE MONEY AND WE BRING THE GRASS ROOTS 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 9402110043 940211 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S BUDGET PLAYS TO GENERALLY FAVORABLE REVIEWS BUT SOME FIGHTS LOOM WITH NO BIG TAX RISE TO SHOOT AT AND THE BUDGET WITHIN SPENDING CAPS REPUBLICANS FIND LITTLE TO ATTACK LIBERAL DEMOCRATS PROBABLY WILL SOFTEN CLINTON'S CUTS IN HOUSING AND HOMEHEATING AID PROGRAMS BUT THEY ESCHEW A MAJOR CHALLENGE REP BLACKWELL WHO REPRESENTS SOME OF PHILADELPHIA'S BLACK NEIGHBORHOODS TELLS TREASURY CHIEF BENTSEN I'M NOT ARGUING WITH YOU BUT CLINTON'S PLAN TO CUT 267 MILLION FOR LIGHT RAIL SYSTEMS MAY BE DERAILED BY KEY LAWMAKERS SOME 625 MILLION IS FOR A PROJECT IN NEW JERSEY HOME OF SEN LAUTENBERG THE CHAIRMAN OF AN APPROPRIATIONS SUBCOMMITTEE MASSACHUSETTS REP FRANK MOVES TO LINE UP DEMOCRATIC SUPPORT TO ELIMINATE A 25 BILLION INCREASE IN DEFENSEBUDGET AUTHORITY OVER LAST YEAR SOME CUTS SUCH AS ELIMINATING 50 MILLION FOR SUNFLOWER AND COTTONSEEDOIL EXPORTS MAY PASS BECAUSE THEIR CONGRESSIONAL BACKERS ARE GONE BOSNIA ACTION SOOTHES US RELATIONS WITH THE UN AS FUNDING REQUESTS NEAR US OFFICIALS CHEER SECRETARY GENERAL BOUTROS BOUTROSGHALI'S DECISION TO PRESSURE NATO MEMBERS INTO THREATENING FORCE AGAINST BOSNIA'S SERBS THEY EXPECT HIM TO HELP KEEP ALLIES IN LINE IF THE SERBS RESIST THEY SAY US AMBASSADOR ALBRIGHT HAS BEEN POUNDING ON THE UN LEADER FOR CROSSING THE US ON ISSUES FROM SOMALIA TO BOSNIA WITHIN DAYS CLINTON WILL SIGN HIS LONGDELAYED PEACEKEEPING DOCTRINE WHICH LIMITS BUT DOESN'T RULE OUT PLACING US TROOPS UNDER UN CONTROL THAT EXCEPTION WILL RAISE CONGRESSIONAL IRE AS THE WHITE HOUSE SEEKS MORE MONEY TO PAY THE US SHARE OF GROWING UNPEACEKEEPING COSTS ALSO HARD TO SWALLOW AN OFFICIAL CONCEDES THE DOCTRINE PUTS THE PENTAGON IN THE PEACEKEEPING BUSINESS TO STAY LOBBYING HEATS UP AS SWEEPING TELECOMMUNICATIONS BILLS MOVE ON A FAST TRACK A NEW COALITION OF LONGDISTANCE PHONE COMPANIES HIRES A PUBLICRELATIONS FIRM AND A GRASSROOTS LOBBYING OUTFIT THEIR MESSAGE COMPETITION WOULD BE STIFLED IF THE BABY BELLS ARE ALLOWED TO OFFER LONGDISTANCE SERVICE WHILE STILL CONTROLLING LOCAL PHONE NETWORKS THE BABY BELLS PUSH FOR A FINAL BILL THAT WOULD LET THEM START MAKING TELECOMMUNICATIONS EQUIPMENT IMMEDIATELY OVERALL THE MAJOR BILLS TO REVAMP TELECOMMUNICATIONS REGULATION PICK UP SUPPORT FROM DIVERSE INDUSTRY GROUPS INCLUDING THE BELLS LONGDISTANCE CARRIERS AND CABLETV COMPANIES BACKERS NOW EXPECT CONGRESS TO PASS LEGISLATION THIS YEAR CONGRESS HAS GOTTEN THE COMMUNICATIONS RELIGION AND IS READY TO ACT SAYS MONTANA SEN BURNS ONE POSSIBLE HITCH A HOTLY DISPUTED PROVISION TO LET THE BELLS OFFER INTRASTATE LONGDISTANCE SERVICE A BOON TO PACIFIC TELESIS IN CALIFORNIA DECLINING HEALTH OF HOUSE APPROPRIATIONS CHAIRMAN NATCHER AT AGE 84 SETS OFF A SCRAMBLE FOR A SUCCESSOR LIBERAL WISCONSIN REP OBEY MAY CHALLENGE ELDERS INCLUDING IOWA'S SMITH OBEY WOULD SYMBOLIZE A NEW GENERATION OF LEADERSHIP FOR A PANEL THAT CONTROLS MUCH OF CLINTON'S INVESTMENT AGENDA BUT PENNSYLVANIA'S MURTHA MAY BE A RIVAL MISSION IMPOSSIBLE THE DEMOCRATIC NATIONAL COMMITTEE ENLISTS POLLSTER STAN GREENBERG AND POLITICAL CONSULTANT JAMES CARVILLE TO FIND A UNITED THEME THAT ALL DEMOCRATS CAN RUN ON THIS YEAR THE FIRST DECISION IS TO RULE OUT LAST FALL'S THEME PERSONAL SECURITY FAREWELL TO ARMS PREPARING TO LEAVE SOMALIA THE US PLANS TO TURN OVER TO THE SOMALI POLICE 5000 RIFLES 18 MILLION ROUNDS OF AMMUNITION 5000 45CALIBER PISTOLS WITH 500000 ROUNDS OF AMMUNITION AND 5000 SETS OF HANDCUFFS AND NIGHTSTICKS TOP TMAN TO HIGHLIGHT THE TREASURY'S ROLE IN FIGHTING CRIME BENTSEN PLANS TO ELEVATE ASSISTANT SECRETARY RONALD NOBLE THE AGENCY'S CHIEF LAWENFORCEMENT OFFICIAL TO UNDERSECRETARY THAT TITLE USUALLY IS RESERVED FOR OFFICIALS WHO OVERSEE DOMESTIC AND INTERNATIONAL FINANCE SLOW SENATE CONFIRMATIONS LEAVE MANY HOLES IN THE CLINTON ROSTER AT LAST COUNT 231 OR NEARLY ONETHIRD OF THE 741 PEOPLE NOMINATED HAD YET TO BE CONFIRMED AMONG THOSE CAUGHT IN THE BACKLOG HAS BEEN NEW US TREASURER MARY ELLEN WITHROW THAT MEANS BUSH TREASURY SECRETARY BRADY'S SIGNATURE STILL APPEARS ON DOLLAR BILLS MUCH TO THE CHAGRIN OF CURRENT TREASURY CHIEF BENTSEN WITH A YEAREND RUSH CLINTON BROUGHT HIS RECORD OF POLITICAL NOMINEES UP TO A PAR WITH PREDECESSORS BUT ABOUT 150 SLOTS STILL LACK APPOINTEES THERE STILL ISN'T AN IRS CHIEF COUNSEL SEC COMMISSIONER MARY SCHAPIRO IS UNDER STRONG CONSIDERATION FOR COMMODITY FUTURES TRADING COMMISSION CHAIRMAN A POST THAT HAS GONE UNFILLED FOR MORE THAN A YEAR THE WHITE HOUSE PERSONNEL OFFICE PRIVATELY COMPLAINS TO NOMINEES THAT ITS OWN UNDERSTAFFING IS CAUSING DELAYS MINOR MEMOS ASKED HOW HE WAS PREPARING FOR TESTIMONY TO CONGRESS ON THE CLINTON HEALTH PLAN CBO DIRECTOR REISCHAUER SAID I'M STANDING IN THE KITCHEN AND HAVING MY WIFE THROW POTS AND PANS AT ME TOUCHTONE WARRIOR WHITE HOUSE AIDE GEORGE STEPHANOPOULOS HAS HIS LEFT PINKIE IN A SPLINT AFTER SOME OVERZEALOUS PHONEBUTTON PUNCHING AMONG 81 EXPERTS SIGNING A LETTER TO CLINTON BACKING A TOUGH TRADE STANCE WITH JAPAN IS MICHAEL CRICHTON AUTHOR OF RISING SUN AND JURASSIC PARK 9402110042 940211 WHAT'S NEWS BUSINESS AND FINANCE A US SURGEONS' GROUP STUNNED THE MEDICAL AND HEALTHPOLICY WORLD BY ENDORSING A NATIONAL SINGLEPAYER HEALTH SYSTEM FOR THE US IN WHICH THE GOVERNMENT WOULD CONTROL MEDICAL FEES AND PAY MEDICAL BILLS WITH TAXPAYER FUNDS THE WHITE HOUSE DOESN'T SUPPORT A SINGLEPAYER SYSTEM BUT IT REACTED WITH ENCOURAGEMENT TO THE AMERICAN COLLEGE OF SURGEONS' STANCE PARTLY BECAUSE SUCH A PLAN WOULD GUARANTEE UNIVERSAL COVERAGE THE DOW JONES INDUSTRIALS DROPPED 3658 TO 389534 REFLECTING INVESTORS' CONCERNS ABOUT RISING INTEREST RATES THE MARKET WEAKENED AT MIDDAY WHEN ELAINE GARZARELLI A WELLKNOWN ANALYST SAID A 4 TO 7 CORRECTION IS POSSIBLE ALTHOUGH SHE REMAINS BULLISH AT&T PLANS TO CUT AS MUCH AS 15 OF THE WORK FORCE IN ITS LONGDISTANCE SERVICES UNIT OR 15000 JOBS THE REDUCTIONS ARE SET OVER TWO YEARS AND ARE TO INCLUDE 8000 MANAGERS GM POSTED FOURTHQUARTER EARNINGS OF 118 BILLION REVERSING A YEAREARLIER LOSS AND FINISHING THE YEAR WITH A PROFIT FOR THE FIRST TIME SINCE 1989 BUT DISAPPOINTMENT THAT NEITHER GM NOR FORD OFFERED A BIG EARNINGS SURPRISE THIS WEEK LED TO A SELLOFF OF AUTO STOCKS GM SHARES FELL 175 TO 6250 AN INVESTMENT FUND LED BY LEON BLACK OFFERED TO ACQUIRE ABOUT 140 MILLION OF DEBT SECURED BY SOME OF THE BEST PROPERTIES OWNED BY OLYMPIA & YORK'S US OPERATIONS IN AN ATTEMPT TO BECOME A BIGGER PLAYER IN THE RESTRUCTURING OF THE US DEVELOPER THE US SUSPENDED TRADE TALKS WITH JAPAN LAST NIGHT HOPING THE CLINTONHOSOKAWA SUMMIT TODAY WILL YIELD CONCESSIONS AND END THE STALEMATE THE SEC IS ASKING 30 MUTUALFUND GROUPS FOR DETAILED INFORMATION ABOUT PERSONAL TRADING BY THEIR PORTFOLIO MANAGERS SPURRED BY GROWING CONCERNS ABOUT POSSIBLE SELFDEALING TAXREFUND FRAUD COULD BE COSTING THE GOVERNMENT BILLIONS OF DOLLARS A REPORT PREPARED FOR THE IRS SHOWED BRODERBUND SHARES ROSE 22 IN THE THREE DAYS OF TRADING PRECEDING THE ANNOUNCEMENT THAT ELECTRONIC ARTS PLANS TO ACQUIRE THE COMPANY LEADING SOME ANALYSTS TO ASSERT THAT INSIDE INFORMATION ABOUT THE DEAL HAD LEAKED OUT TANDY EXPECTS TO REPORT STRONG FOURTHQUARTER EARNINGS AND PREDICTS A SURGE IN SALES FOR 1994 MARKING A REBOUND A YEAR AFTER MOVING TO SHED ITS COMPUTERMANUFACTURING OPERATIONS GTECH WON A SEVENYEAR 200 MILLION CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITSTRANSFER SYSTEM IN TEXAS TO REPLACE THE FOODSTAMPS PROGRAM AMERICA WEST AIRLINES ASKED THE US BANKRUPTCY COURT TO PROHIBIT THE SALE OR TRANSFER OF ITS SECURITIES TO PRESERVE THE COMPANY'S TAX BENEFITS MCA ACQUIRED A STAKE IN CLOSELY HELD INTERPLAY PRODUCTIONS A MAKER OF CDROM COMPUTER AND VIDEO GAMES ATLANTIC RICHFIELD'S CHAIRMAN LODWRICK COOK WAS NAMED TO HEAD REBUILD LA A GROUP FORMED TO REVITALIZE BLIGHTED AREAS OF THE CITY BONDS LEHMAN BROTHERS TREASURY INDEX 552024 OFF 1717 COMMODITIES OIL 1456 A BARREL OFF 4 CENTS DOW JONES FUTURES INDEX 14488 UP 010 SPOT INDEX 13100 OFF 014 DOLLAR 10815 YEN OFF 020 17533 MARKS OFF 00052 9402110041 940211 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 CALPINE CORP 105 MILLION OF SENIOR NOTES DUE FEB 1 2004 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN BANK SYSTEM 115 MILLION OF NOTES DUE FEB 24 1999 PRICED INITIALLY AT PAR TO YIELD 552 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 19 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF NOTES DUE FEB 23 2001 PRICED AT PAR TO YIELD 5955 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 27 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO KAISER ALUMINUM & CHEMICAL CORP 225 MILLION OF SENIOR NOTES DUE FEB 15 2002 PRICED AS 9875S AT 99324 TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KAISER ALUMINUM & CHEMICAL IS A UNIT OF KAISER ALUMINUM CORP JOHN Q HAMMONS HOTELS LP 300 MILLION OF FIRSTMORTGAGE NOTES DUE FEB 15 2004 PRICED AT PAR TO YIELD 8875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NORTHERN STATES POWER CO 200 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 1 1999 SOLD THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO THE BONDS WERE PRICED AS 55S AT 99825 TO YIELD 554 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS AND ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P DAKTRONICS INC 13 MILLION COMMON SHARES PRICED AT 7625 EACH ACCORDING TO THE COMPANY THE OFFERING IS THROUGH AN UNDERWRITING SYNDICATE HEADED BY CRAIGHALLUM A DIVISION OF HAMILTON INVESTMENTS INC NETMANAGE INC 19 MILLION COMMON SHARES PRICED AT 33 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO AND OPPENHEIMER & CO THERATECH INC 21 MILLION COMMON SHARES PRICED AT 13625 EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO PACIFIC GULF PROPERTIES INC INITIAL OFFERING OF 39 MILLION COMMON SHARES PRICED AT 1825 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES G028 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 450 MILLION OF REMIC SECURITIES OFFERED BY JP MORGAN SECURITIES THE OFFERING SERIES GOLD 1699 IS BACKED BY FREDDIE MAC GOLD 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY BARCLAYS DE ZOETE WEDD SECURITIES INC THE OFFERING SERIES 199444 IS BACKED BY FANNIE MAE 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS BANCO UNB SA ARGENTINA 50 MILLION OF 8 EUROBONDS DUE FEB 23 1996 AT ISSUE AND REOFFER PRICE 97483 VIA WEST MERCHANT BANK BONDS YIELD 941 A MARGIN OF 499 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY COFINOGA SA FRANCE 100 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE 9991 VIA CHEMICAL INVESTMENT BANK PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 40 BASIS POINTS FEES 022 COMMERBANK OVERSEAS FINANCE NV GERMAN PARENT 150 MILLION OF 625 EUROBONDS DUE DEC 10 1999 AT ISSUE PRICE 10124 VIA NATWEST CAPITAL MARKETS REOFFERED AT 9964 TO YIELD 632 A MARGIN OF 27 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR COMMERZBANK AG FEES 1875 DRESDNER FINANCE BV AMSTERDAM GERMAN PARENT 200 MILLION OF 6 EUROBONDS DUE DEC 7 1999 AT ISSUE PRICE 10041 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND UBS LTD REOFFERED AT 9881 TO YIELD 625 A MARGIN OF 20 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR DRESDNER BANK AG FEES 1875 EUROPEAN INVESTMENT BANK SUPRANATIONAL 10 BILLION GREEK DRACHMAS OF 175 BONDS DUE MARCH 8 1999 AT ISSUE PRICE PAR VIA HELLENIC INDUSTRIAL DEVELOPMENT BANK ETBA AND MIDLAND BANK ATHENS BONDS YIELD 1798 AT 985 COMANAGERS' BREAKEVEN PRICE FEES 1625 LESS 0125 FOR LEAD MANAGER GENERAL ELECTRIC CAPITAL CORP US PARENT 800 MILLION OF EUROBONDS IN TWO TRANCHES VIA SWISS BANK CORP INCLUDING 400 MILLION OF 55 BONDS DUE MARCH 10 1999 AT ISSUE PRICE 10152 REOFFERED AT 99895 TO YIELD 5525 A MARGIN OF 13 BASIS POINTS OVER COMPARABLE US TREASURY FEES 1875 ISSUE ALSO INCLUDES 400 MILLION OF 5 BONDS DUE MARCH 10 1997 AT ISSUE PRICE 1013775 REOFFERED AT 10019 TO YIELD 493 A MARGIN OF NINE BASIS POINTS OVER COMPARABLE US TREASURY FEES 1375 GOLDMAN SACHS GROUP LTD PARTNERS US 700 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1998 AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY AT 0375 POINT ABOVE THREEMONTH DOLLAR LIBOR CALLABLE QUARTERLY AT PAR AFTER TWO YEARS FEES 01 INTERNATIONALE NEDERLANDEN BANK NV NETHERLANDS 200 MILLION CANADIAN DOLLARS OF FLOATINGRATE EURONOTES DUE MARCH 8 2004 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO PAYABLE SEMIANNUALLY AT 30 BASIS POINTS BELOW SIXMONTH BANKERS' ACCEPTANCE RATE MAXIMUM COUPON 9 MINIMUM 6 FEES UNDISCLOSED LANDESKREDITBANK BADENWUERTTEMBERG GERMANY TWO BILLION MARKS OF FLOATINGRATE NOTES DUE FEB 24 2004 AT ISSUE PRICE 100125 VIA TRINKAUS & BURKHARDT KGAA PAYABLE SEMIANNUALLY AT SIXMONTH MARK LIBOR FLAT FEES 02 LESS 002 FOR LEAD MANAGER NISSEN CO JAPAN 190 MILLION MARKS OF 0875 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 3 1998 AT ISSUE PRICE PAR VIA NOMURA BANK DEUTSCHLAND GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM 25 FROM MARCH 17 TO FEB 24 1998 TERMS FIXED FEB 16 FEES 225 LESS 0125 FOR LEAD MANAGER STATE BANK OF SOUTH AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 6 EUROBONDS DUE MARCH 30 1998 AT ISSUE PRICE 1008 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 624 AT 99175 COMANAGERS' BREAKEVEN PRICE GUARANTOR SOUTH AUSTRALIA FEES 175 LESS 0125 FOR LEAD MANAGER SXL CORP JAPAN 200 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE FEB 24 1998 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD WARRANTS EXERCISABLE TO PURCHASE SHARES AT INDICATED PREMIUM 25 FROM MARCH 10 TO FEB 17 1998 TERMS FIXED FEB 17 FEES 225 LESS 02 FOR LEAD MANAGER THOMSON BRANDT INTERNATIONAL BV FRENCH PARENT 15 BILLION FRENCH FRANCS OF 6375 EUROBONDS DUE MARCH 10 2004 AT ISSUE PRICE 100534 VIA CREDIT COMMERCIAL DE FRANCE AND JP MORGAN ET COMPAGNIE SA REOFFERED AT 9896 TO YIELD 652 A MARGIN OF 62 BASIS POINTS OVER COMPARABLE FRENCH TREASURY GUARANTOR THOMSON SA FEES TWO TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 300 MILLION OF 5 EUROBONDS DUE MAR 10 1997 AT ISSUE PRICE 1012875 VIA SWISS BANK CORP REOFFERED AT 1001 TO YIELD 496 A MARGIN OF 125 BASIS POINTS ABOVE THREEYEAR US TREASURYS FEES 1375 WELSH WATER UTILITIES FINANCE PLC UK 100 MILLION OF 7125 EUROBONDS DUE MAR 17 2004 AT ISSUE PRICE 101138 VIA BARING BROTHERS & CO REOFFERED AT 99513 TO YIELD 707 MARGIN OF 48 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR DWR CYMRU CYFYNGEDIG WELSH WATER LTD FEES TWO WELSH WATER UTILITIES FINANCE PLC UK 100 MILLION OF 7625 PARTLY PAID EUROBONDS DUE MARCH 21 2014 AT ISSUE PRICE 10078 VIA BARING BROTHERS & CO LTD REOFFERED AT 98905 TO YIELD 760 A MARGIN OF 77 BASIS POINTS OVER COMPARABLE GILT GUARANTOR DWR CYMRU CYFYNGEDIG WELSH WATER LTD FEES 25 9402110040 940211 WHAT'S NEWS WORLDWIDE SHELLING GUNFIRE SHATTERED A SARAJEVO CEASEFIRE HOURS AFTER IT BEGAN HEAVY ARTILLERY SHELLS AND MACHINEGUN FIRE STRUCK THE BOSNIAN CAPITAL LATE YESTERDAY WITNESSES SAID THE FIERCE BUT BRIEF ATTACK FOLLOWED A DAY OF RELATIVE CALM AS SERB FORCES THREATENED WITH NATO AIR RAIDS AGREED TO A CEASEFIRE AND ALLOWED UN PEACEKEEPERS TO MOVE INTO THEIR FRONTLINE POSITIONS THE GUNFIRE CAME FROM THE DIRECTION OF A HOTLY CONTESTED AREA NEAR VRBANJA BRIDGE THAT WAS NOT HANDED OVER TO THE UN PEACEKEEPERS BOSNIAN SERB POLITICAL AND MILITARY LEADERS GAVE CONFLICTING REACTIONS TO NATO'S ULTIMATUM WEDNESDAY ORDERING SERBS TO HALT THEIR SHELLING THE NIH HAS DROPPED ITS THREEYEAR ATTEMPT TO PATENT THOUSANDS OF GENE FRAGMENTS FOUND BY ONE OF ITS SCIENTISTS THOUGH THE GOVERNMENT AGENCY SAID IT HOPED ITS ACTION WOULD END A RUSH BY COMPANIES AND OTHER COUNTRIES TO FILE SIMILAR PATENT CLAIMS THE DECISION MAY HAVE COME TOO LATE TO HAVE AN EFFECT THE SENATE APPROVED 86 BILLION IN RELIEF FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE THE COSTLIEST DISASTER AID PACKAGE IN THE NATION'S HISTORY THE 8510 VOTE CAME AFTER THE REJECTION OF SEVERAL PROPOSALS FOR SPENDING CUTS THAT WOULD HAVE SHELTERED THE BUDGET DEFICIT FROM THE COST OF QUAKE RELIEF AN INDEPENDENT COUNSEL BILL WAS PASSED 35656 BY THE HOUSE AFTER LAWMAKERS REJECTED A GOP PLAN TO HAVE THE NEUTRAL PROSECUTORS CONDUCT ALL CRIMINAL PROBES OF SENATE AND HOUSE MEMBERS THE BILL SIMILAR TO A SENATEPASSED VERSION WOULD ALLOW COURTAPPOINTED COUNSELS TO INVESTIGATE TOP GOVERNMENT OFFICIALS ROSTENKOWSKI REIMBURSED THE GOVERNMENT 82000 FOR POSSIBLY IMPROPER PURCHASES FROM THE HOUSE OFFICE SUPPLY SERVICE OVER A SIXYEAR PERIOD THE ILLINOIS DEMOCRAT CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE MADE THE PAYMENT LAST WEEK A FEDERAL JUDGE RULED IN SEATTLE THAT A WASHINGTON STATE LAW RESTRICTING THE NUMBER OF TIMES MEMBERS OF CONGRESS CAN PUT THEIR NAMES ON THE BALLOT FOR REELECTION IS UNCONSTITUTIONAL PLAINTIFFS SEEKING TO OVERTURN THE CONGRESSIONAL TERM LIMITS IN THE LAW INCLUDED HOUSE SPEAKER FOLEY CLINTON IS EXPECTED TO ISSUE AN EXECUTIVE ORDER TODAY REQUIRING FEDERAL AGENCIES AND POSSIBLY GOVERNMENT CONTRACTORS TO MONITOR THE EFFECTS OF THEIR ACTIONS ON ENVIRONMENTAL HEALTH IN MINORITY COMMUNITIES THE ORDER IS SAID TO BE VAGUE ABOUT THE EXTENT TO WHICH PRIVATE COMPANIES WILL BE COVERED GUNMEN IN NORTHERN SOMALIA SEIZED FIVE BRITONS INCLUDING TWO MEMBERS OF PARLIAMENT AND A SOMALI BUT A RELIEF OFFICIAL SAID ALL SIX HOSTAGES WERE FREED YESTERDAY AFTER BEING HELD OVERNIGHT UN OFFICIALS HAVE WARNED OF AN UPSURGE IN CLAN VIOLENCE AS PEACEKEEPERS WITHDRAW PROTESTS BY UNARMED PEASANTS SPREAD IN MEXICO'S IMPOVERISHED SOUTHERN STATE OF CHIAPAS THE PEASANTS SEIZED MAYORS' OFFICES IN THREE VILLAGES NEAR THE CITY OF SAN CRISTOBAL DE LAS CASAS POPE JOHN PAUL II PROMISED TO FIGHT A EUROPEAN PARLIAMENT RESOLUTION PROPOSING THAT HOMOSEXUAL COUPLES BE ALLOWED TO MARRY AND TO ADOPT CHILDREN THE PONTIFF SAID WE CAN'T LET THIS PASS THOUSANDS OF CIVILIANS HAVE DIED IN ATTACKS BY GOVERNMENT AND REBEL FORCES IN SUDAN ACCORDING TO A UN REPORT WHICH ALSO ALLEGES THAT CHILDREN ARE BEING KIDNAPPED FOR USE AS SLAVES OR SOLDIERS A COURT HEARING IS SET FOR TODAY IN OREGON TO CONSIDER A REQUEST BY TONYA HARDING TO BLOCK THE US OLYMPIC COMMITTEE FROM HOLDING A HEARING THAT COULD LEAD TO THE SKATER'S EXPULSION FROM THE WINTER GAMES RUSSIA'S FORMER ECONOMICS CHIEF URGED FORMATION OF A NEW BROADBASED REFORMIST PARTY AHEAD OF THE 1996 PRESIDENTIAL VOTE GAIDAR'S ACTION CAME AMID A SPLIT WITHIN RUSSIA'S CHOICE A PROREFORM ALLIANCE HE LEADS IN PARLIAMENT MANDELA REGISTERED HIS AFRICAN NATIONAL CONGRESS AS A POLITICAL PARTY IN PREPARATION FOR SOUTH AFRICA'S FIRST ALLRACE ELECTIONS IN APRIL MEANWHILE AN UMBRELLA GROUP OF RIGHTWING WHITE POLITICIANS THE AFRIKANER VOLKSFRONT SAID IT WOULD BOYCOTT THE VOTE 9402110038 940211 CREDIT RATINGS WALT DISNEY'S RATING ON LONGTERM DEBT IS LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS RATINGS TO SINGLEA1 FROM DOUBLEA3 FOR 18 BILLION OF WALT DISNEY CO LONGTERM DEBT SECURITIES INCLUDING SENIOR UNSECURED NOTES DEBENTURES AND MEDIUMTERM NOTES THE NEW YORKBASED RATING SERVICE SAID THE DOWNGRADES REFLECT EXPECTATIONS THAT OPERATIONS AT THE EURODISNEY THEME PARK NEAR PARIS WILL REMAIN UNDER PRESSURE AT LEAST IN THE INTERMEDIATE TERM AND THAT AS A RESULT UNCERTAINTY OVER WALT DISNEY'S FUTURE FINANCIAL COMMITMENTS TO THE PROJECT WILL INCREASE ITS RISK PROFILE MOODY'S SAID IT EXPECTS THE EURODISNEY DEBT RESTRUCTURING BEING NEGOTIATED BETWEEN DISNEY AND A GROUP OF LENDERS WILL LIKELY RESULT IN THE SHARING OF THE FINANCIAL BURDEN WITH CONCESSIONS FROM BOTH SIDES IT NOTED THAT RECENT SEASONAL EURODISNEY PRICE REDUCTIONS MAKE IT HARDER TO MAINTAIN REVENUE LEVELS WHILE CITING OTHER CHALLENGES FOR DISNEY WHICH IS BASED IN BURBANK CALIF DISNEY AS A WHOLE WILL REMAIN VERY PROFITABLE AND SHOULD CONTINUE TO GENERATE STRONG CASH FLOWS THANKS TO ITS MORE MATURE DIVERSIFIED FRANCHISES MOODY'S SAID BUT THE DOWNGRADES ALSO REFLECT DISNEY'S CHANGING OPERATING PROFILE WHERE EXTERNAL FUNDING AND/OR CASH ON HAND MAY BE NEEDED TO HELP IT GROW AS A MULTIMEDIA PROVIDER OVER THE NEXT FEW YEARS A DISNEY SPOKESMAN SAID THE MOODY'S RATE CUT WAS ONLY A NOTCH AND IT SHOULDN'T IMPACT OUR BORROWING COST IN ANY WAY HE NOTED THAT THE COMPANY IS MAINTAINING ITS DOUBLEA RATING WITH STANDARD & POOR'S CORP 9402110037 940211 CREDIT RATINGS CINCINNATI BELL INC CINCINNATI MOODY'S INVESTORS SERVICE SAID IT LOWERED ITS RATINGS OF THE TELECOMMUNICATIONS COMPANY'S SENIOR LONGTERM DEBT TO SINGLEA2 FROM SINGLEA1 CITING THE COMPANY'S CONTINUING DIFFICULTIES IN ACHIEVING ADEQUATE EARNINGS FROM ITS DIVERSIFICATION STRATEGY THE MOVE AFFECTS ABOUT 225 MILLION OF DEBT MIDLANTIC CORP STANDARD & POOR'S CORP RAISED ITS RATINGS ON ABOUT 400 MILLION OF DEBT OF THIS BANKING COMPANY INCLUDING RAISING SENIOR DEBT TO DOUBLEBPLUS FROM DOUBLEB S&P WHICH REMOVED THE RATINGS FROM ITS CREDITWATCH REVIEW LIST SAID MIDLANTIC'S FINANCIAL PERFORMANCE CONTINUES TO IMPROVE AND NOTED FAVORABLE TRENDS IN DISPOSING OF PROBLEM ASSETS THE ASSET MOVES SHOULD LET MIDLANTIC CONCENTRATE ON LENDING INITIATIVES AND EXPLOIT ITS MARKET POSITION IN NEW JERSEY AND SOUTHEASTERN PENNSYLVANIA S&P SAID MIDLANTIC IS BASED IN EDISON NJ 9402110036 940211 LEISURE & ARTS JAPAN'S ANSWER TO BEAVIS AND BUTTHEAD BY MAGGIE KINSER SAIKI TOKYO IT'S JUST BEFORE THE BIG NEW YEAR'S HOLIDAY AND AT FIVEYEAROLD CRAYON SHINCHAN'S NURSERY SCHOOL EVERYBODY GETS TO HELP MAKE MOCHI A STICKYRICE TREAT THAT CAN BE SHAPED LIKE CLAY HIS CLASSMATES MAKE CUTE MOCHI GIRAFFES AND TRAINS SHINCHAN MEANWHILE PRODUCES A PILE OF QUITE REALISTIC PHALLUSES DRAWING SIGHS FROM HIS FRIENDS AND A FAMILIAR SCOLDING FROM HIS TEACHERS SHINCHAN IS THE ONLY CHILD OF THE FICTIONAL NOHARA FAMILY AND THE PROTAGONIST OF SIX VOLUMES AND 20 MILLION COPIES OF CRAYON COMIC BOOKS A WEEKLY TELEVISION CARTOON AND MOST RECENTLY A MOVIE A FULLBLOWN MERCHANDISING CAMPAIGN HAS PUT THE IRREVERENT CYNICAL CHILD ON FULLY 500 DIFFERENT PRODUCTS FROM PACKAGED FOOD TO COMPUTER SOFTWARE HE'S BECOME THE SUBJECT OF LIVINGROOM AND MEDIA DEBATES THROUGHOUT THE COUNTRY THIS IS WHAT'S MOST GALLING ABOUT SHINCHAN HE COMES RIGHT OUT AND SAYS WHAT HE'S THINKING REGULARLY ABANDONING TATEMAE APPEARANCE FOR HONNE TRUE FEELINGS ADULT JAPANESE RAISED ON PROGRAMS SUCH AS THE LONGRUNNING SAZAESAN WHICH CHRONICLES AN IDEALIZED FAMILY'S TRIALS AND TRIBULATIONS ARE OFTEN RELUCTANT TO CONSIDER SUCH AN OUTSPOKEN AND INCREASINGLY LECHEROUS TELEVISION ALTERNATIVE TO THEIR LIFESTYLES AND INTERACTIONS MORE SHOCKING TO JAPANESE THOUGH IS THE POSSIBILITY THAT THERE MAY BE A NEW KIND OF INDIVIDUAL EMERGING IN THEIR SOCIETY TWENTYTHREEYEAROLD ATSUKO NIWA OF SHINEI TV ASAHI THE CARTOON'S PRODUCER INSISTS THE MEDIA OFTEN SAYS SHINCHAN'S AN ABERRATION BUT HE'S NOT JAPAN'S LARGEST NEWSPAPER THE ASAHI SHIMBUN REPORTED LAST YEAR THAT SPEAKING IN SHINCHANISMS IS A NATIONWIDE TREND AMONG KIDS FROM FIVE ON UP AND THAT SUCH BEHAVIOR WAS ADDRESSED AT A CONFERENCE TITLED THE INFORMATION AGE AND CHILD REARING THE PAPER QUOTED A JAPANESE PSYCHOLOGIST REMARKS IT'S IMPORTANT THAT ADULTS DON'T SLIP INTO THE SAME SPEAKING HABITS AND THAT THEY TEACH KIDS HOW IT FEELS TO BE TALKED TO THE WAY SHINCHAN DOES SHINCHAN IS WATCHED BY 68 OF FOUR TO 12YEAROLDS THE NEWSPAPER REPORTED INEVITABLY THE SHINCHAN BOOM IS STARTING TO AFFECT THE YOUNGER GENERATION KIDS ARE COPYING HIS IMPUDENT SLUR ONE JAPANESE MOTHER I KNOW FRETS THAT HER CHILD IS PRACTICALLY TRANSFORMED INTO SHINCHAN AFTER HE WATCHES THE SHOW HIS STRAIGHTFORWARD TRULY CHILDLIKE HONESTY MAY SEEM REFRESHING YET ALL THE FUSS ABOUT SHINCHAN'S BEHAVIOR WHICH MOSTLY AMOUNTS TO BAD MANNERS IS REVEALING AS SHINCHAN HAS EVOLVED FROM ADULTCOMICBOOK HERO TO PRIMETIME CARTOON CHARACTER ANOTHER ASPECT OF HIS PERSONALITY HAS EMERGED ONE MUCH MORE DANGEROUS THAN HIS PRECOCIOUSNESS SHINCHAN IS AS 19YEAROLD MAIKO IGA ASSERTS OFFENSIVE LEWD IS A BETTER WAY TO PUT IT AND THIS RAISES THE QUESTION OF WHOM SHINCHAN'S CREATORS ARE TRYING TO PLEASE THE WEEKLY CARTOON WHICH HAS AIRED AT 7 PM SINCE APRIL 1992 IS SEEN BY 25 OF JAPANESE HOUSEHOLDS THE SHOW STARTED OUT WITH STORY LINES FEATURING SHINCHAN'S HARMLESS PRANKS AND MISUNDERSTANDINGS AND WAS OFTEN SET AT HIS NURSERY SCHOOL IT HAS COME TO INCLUDE MORE AND MORE PERVERSITY THIS INCLUDES THE TRADITIONAL JAPANESE MALE'S DEROGATORY VIEW OF WOMEN WHICH IS PERHAPS NOT A SURPRISE THE PRIME TARGET IS FOUR TO 12YEAROLDS SAYS MS NIWA BUT WE EVENTUALLY WANTED TO REACH YOUNG WORKING WOMEN AND MEN MY FATHER'S AGE TOO WE NEVER THOUGHT IT WOULD HAPPEN SO QUICKLY SHINCHAN'S OPENING SONG CHANGED LAST YEAR IN AN APPARENT ATTEMPT TO APPEAL TO THE OLDER SET REFLECTS A FAMILIAR CHAUVINIST ATTITUDE IT'S RACIER THAN THE ORIGINAL WHICH BEGAN FROM A DISTANCE HE'S FUN BUT UP CLOSE THAT WILLFULNESS THAT CHEEK IT'LL DRIVE YOU CRAZY NOW IT'S LADEN WITH PICKUP LINES SUCH AS COME ON BABY COME ON BABY IF YOU LOOK AT ME THAT WAY I'LL BLUSH AS WELL AS PART OF SHINCHAN'S BAWDY VERSION OF A TRADITIONAL NURSERY RHYME ABOUT AN ELEPHANT'S TRUNK IN ONE EPISODE SHINCHAN PEEKS UNDER HIS MOM'S SKIRT AS SHE PREPARES TO GO OUT THEN DECLARES YOU'RE NOT WEARING YOUR SEETHROUGH PANTIES IN ANOTHER ADAPTING HIS GRANDFATHER'S SONG ABOUT HIS FAVORITE FOODS THE FIVEYEAROLD SINGS BRING ME TBACK PANTIES HIGHLEG PANTIES MS NIWA ADMITS THAT THE STATION RECEIVED COMPLAINTS FROM CONSERVATIVE PEOPLE BUT SHE LIKE MANY FANS IS WILLING TO FORGIVE HIM BECAUSE HE'S A PRESCHOOLER VIEWERS LIKE MS IGA ON THE OTHER HAND COUNTER JUST BECAUSE HE'S A LITTLE BOY DOESN'T MAKE IT OK SEXUAL HARASSMENT IS NOW RECOGNIZED AS A SERIOUS PROBLEM IN ADULT SOCIETY WHY IS IT ACCEPTED IN A CHILDREN'S CARTOON LOTS OF KIDS MAY BE TAKING THESE SEXIST REMARKS SERIOUSLY SCOTT BRAUSE A TOKYO WRITER TRANSLATOR AND FATHER OF TWO PRESCHOOLERS AGREES SHINCHAN'S ALWAYS GOT HIS HANDS IN SOME CHICK'S PANTS IF IT'S NOT HIS MOTHER IT'S HIS TEACHER MAYBE THE RISQUE THEMES ARE INCLUDED TO KEEP ADULTS FROM CHANGING CHANNELS BUT MORE DIFFICULT TO FATHOM IS WHY THE SHINCHAN MOVIE A PRODUCT OF TOHO STUDIOS AND TARGETED AT FOUR TO SIXYEAROLDS FEATURES A BAD GUY WHO BY BLACK MAGIC PUTS MANY OF THE CHARACTERS INCLUDING THE MALE PRINCIPAL OF SHINCHAN'S NURSERY SCHOOL INTO HIGHLEG BATHING SUITS A FIFTYSOMETHING WOMAN WHO TOOK HER THREEYEAROLD GRANDDAUGHTER TO SEE IT SAID AFTERWARD IT DIDN'T CONFORM TO MY VALUES BUT I WOULDN'T CALL IT DIRTY EXACTLY IT WAS JUST ODD SO ALL THE KIDS WERE LAUGHING TOHO STUDIOS IS LAUGHING TOO ALL THE WAY TO THE BANK MORE THAN TWO MILLION JAPANESE HAVE SEEN THE FILM SINCE ITS JULY RELEASE MS SAIKI IS A FREELANCE WRITER IN KYOTO 9402110035 940211 REVIEW & OUTLOOK EDITORIAL ASIDES OUT OF THE ICE THIS WEEKEND COMMENCES THE WINTER OLYMPICS IN LILLEHAMMER EVEN LIFE FORMS ON THE MOON OF COURSE WILL BE TUNED IN FOR THE SKATEOFF OF THE CENTURY BUT ONE HAS TO WONDER ABOUT HOW THE REST OF THIS SNOWCOVERED SPORT WILL PLAY IN ICEWEARY AMERICA WHERE EVEN THE GREAT LAKES ARE ALMOST FROZEN OVER ALL THOSE HOMEBOUND WITH LEGS CRACKED ON SLICK ICE MAY SPEND HOURS WITH WHITE NORWAY BUT SOME OF THE REST OF US MAY PREFER DAYDREAMING ABOUT SUMMERS SUN AND DRY PAVEMENT LONG FORGOTTEN 9402110034 940211 LEISURE & ARTS BOOKSHELF NEW FROM BUCKLEY BAYER BRAUN & HIGGINS BY TOM NOLAN BACK FROM THE SHADOWS OF THE COLD WAR FOR ONE MORE ADVENTURE IS BLACKFORD OAKES THE CENTRAL INTELLIGENCE AGENCY COVERTACTIVITIES CHIEF FEATURED IN A BESTSELLING SERIES OF NOVELS BY WILLIAM F BUCKLEY JR A VERY PRIVATE PLOT MORROW 272 PAGES 20 THE 10TH AND SO SAYS ITS AUTHOR LAST OF THE OAKES CHRONICLES SHIFTS BETWEEN PAST AND FUTURE TENSIONS THE BOOK'S PRESENT IS 1995 WHEN A LIBERAL US SENATOR BENT ON PASSING LEGISLATION THAT WOULD BAN SECRET CIA ACTIVITIES TRIES TO FORCE OAKES TO TESTIFY ABOUT SOMETHING CALLED CYCLOPS THE SENATOR DOESN'T KNOW FOR SURE WHAT CYCLOPS WAS BUT HE CLAIMS IT BROUGHT THE WORLD TO THE BRINK OF NUCLEAR WAR OAKES RISKS BEING HELD IN CONTEMPT OF CONGRESS BY REFUSING TO TALK THROUGH FLASHBACKS THE READER LEARNS WHAT ALL THE FUSS IS ABOUT IN 1986 A HANDFUL OF DISAFFECTED YOUNG RUSSIANS SOME OF THEM VETERANS OF THE DISASTROUS AFGHAN CAMPAIGN PLANNED THE ASSASSINATION OF PREMIER MIKHAIL GORBACHEV WHOM THEY HELD RESPONSIBLE FOR THEIR NATION'S ILLS WHEN THE PLOTTERS CAME TO THE ATTENTION OF A KGB DOUBLE AGENT HE ALERTED HIS LONGTIME US CONTACT OAKES WHO IN TURN WARNED PRESIDENT REAGAN THE PLOT OF COURSE WAS A FAILURE NOVELIST BUCKLEY DOES NOT ATTEMPT TO REWRITE HISTORY BUT SOME SUSPENSE IS GENERATED REGARDING THE FATE OF THE PLAYERS THE OTHER APPEAL OF THIS SMOOTHLY WRITTEN ENTERTAINMENT IS IN ITS SEEMINGLY KNOWLEDGEABLE PEEKS INSIDE THE CORRIDORS OF POWER AT MAKEBELIEVE MEETINGS WITH THE LIKES OF CIA CHIEF WILLIAM CASEY AND INSIDE THE OVAL OFFICE WITH PRESIDENT REAGAN THE REAGAN EPISODES RING TRUEST AND FUNNIEST AS THE CHIEF EXECUTIVE LOOKS TO OLD MOVIES FOR HISTORICAL PRECEDENTS I REMEMBER IN MAN HUNT WHEN WALTER PIDGEON HAD HITLER AT HIS MOUNTAIN HIDEOUT RIGHT IN THE CROSSHAIRS OF HIS RIFLE MY HEAVENS HOW WE ALL WISH HE HAD SQUEEZED THAT TRIGGER TURN IN WALTER PIDGEON BECAUSE HE INTENDED TO SHOOT HITLER THAT'S CRAZY CRAZINESS OF A DIFFERENT SORT INFORMS MIRROR MAZE VILLARD 358 PAGES 21 THE LATEST IN WILLIAM BAYER'S BOOKS FEATURING NEW YORK POLICE DEPARTMENT LT FRANK JANEK A YOUNG WOMAN RAISED ABOVE AN ELABORATE MIRRORED FUN HOUSE AND ABUSED THERE BY HER CARNIVALWORKER FATHER ACTS OUT HER RITUALREVENGE OBSESSIONS BY DRUGGING AND ROBBING MEN WHEN ONE VICTIM IS FOUND KILLED JANEK HUNTS THE YOUNG WOMAN THROUGH THE CITY'S MAZE AT THE SAME TIME THE LIEUTENANT IS FORCED TO REENTER ANOTHER LABYRINTH THE NOTORIOUS NINEYEAROLD MENDOZA CASE WHICH SAW A WELLTODO NEW YORKER CONVICTED OF ARRANGING THE MURDER OF THE WIFE WHO ENGAGED WITH HIM IN VIOLENT SEXUAL SCENARIOS DID AN OFFICIAL COVERUP RESULT IN OTHER KILLINGS JANEK'S CHIEF SENDS HIM TO CUBA IN SEARCH OF A VANISHED WITNESS MR BAYER'S FICTIONAL MAZE IS WELLCONSTRUCTED FILLED WITH SURPRISING TURNS AND INTENTIONALLY FRUSTRATING DEAD ENDS DISCOVERED WITHIN IT ARE STRAIGHT AND CROOKED COPS DEVIOUS AND ABOVEBOARD ATTORNEYS CARING PSYCHIATRISTS COLDBLOODED PREDATORS AND A SURPRISINGLY SYMPATHETIC VICTIMIZER JANEK HIMSELF PROVES TO BE GOOD COMPANY A LIKABLE AND BELIEVABLE HERO MORE THAN A MATCH FOR THE MONSTERS HE EVENTUALLY FINDS THERE'S NOTHING MONSTROUS TO WORRY ABOUT IN THE LATEST ULTRACOZY MYSTERY OF LILIAN JACKSON BRAUN WHAT VIOLENCE THERE IS TAKES PLACE OFFSTAGE IN THE CAT WHO CAME TO BREAKFAST PUTNAM 254 PAGES 1995 THE 16TH BOOK INVOLVING SMALLTOWN COLUMNISTMILLIONAIRE JIM QWILLERAN AND HIS TWO SIAMESE CATS ONE OF WHOM MAY HAVE USEFUL PSYCHIC ABILITIES THIS TIME OUT THE COLUMNIST AND HIS FELINES INVESTIGATE THE CURIOUS DOINGS ON BREAKFAST ISLAND A HISTORIC OFFSHORE SETTLEMENT RECENTLY DEVELOPED AS A VACATION SPOT THE OLDTIMERS RESENT THE NEWCOMERS BUT IS THERE ENOUGH BAD BLOOD TO LEAD TO MURDER READERS HUNGRY FOR MILD DETECTION AND LOTS OF CAT GROOMING WILL FIND BREAKFAST JUST THEIR CUP OF KIBBLE THE MORE HARDBOILED THOUGH MAY PROVE ALLERGIC TO THESE SIAMESE IN A LEAGUE APART FROM ANY OF THE BOOKS JUST DISCUSSED IS BOMBER'S LAW HENRY HOLT 296 PAGES 2250 BY GEORGE V HIGGINS ONE OF THE MOST ACCOMPLISHED NOVELISTS EVER TO WRITE IN THE CRIMEFICTION FIELD THIS 25TH HIGGINS BOOK HAS A BOSTON POLICE DETECTIVE HARRY DELL'APPA PREPARING TO ASSUME THE CASELOAD OF RETIRING VETERAN BOB BRENNAN THE GLARING OMISSION OF BRENNAN'S CAREER IS HIS FAILURE TO FIND GROUNDS TO ARREST SHORT JOEY MOSSI WHO IS ALMOST CERTAINLY A HIT MAN FOR THE MOB BRENNAN HAS BEEN STALKING MOSSI FOR YEARS WITHOUT TURNING UP ANY EVIDENCE DELL'APPA FINDS THIS PECULIAR AND HE BEGINS POKING INTO BRENNAN'S SECRETS AS WELL AS MOSSI'S MR HIGGINS'S FORTE IS DIALOGUE BOMBER'S LAW IS TOLD ALMOST COMPLETELY THROUGH CONVERSATIONS ITS CHARACTERS ARE CHAMPION TALKERS THEIR SPEECHES FILLED WITH ENGROSSING DIGRESSIONS AND SELFREVEALING ASIDES ARTFULLY RESEMBLE REALLIFE MONOLOGUES WITHOUT DUPLICATING REAL TALK'S FALSE STARTS AND DULL REPETITIONS THE AUTHOR IS ON RECORD AS BEING AN ADMIRER OF THE WORK OF THE LATE JOHN O'HARA A WRITER WHO WAS AN EXPERT AT SHOWING BY TELLING WITH BOMBER'S LAW MR HIGGINS EARNS ANOTHER PLACE ON THE SAME SHELF AS THAT PAST MASTER 9402110033 940211 BUSINESS BRIEF COMMONWEALTH EDISON CO FIRM REQUESTS RATE HIKE AMOUNTING TO 4603 MILLION COMMONWEALTH EDISON CO SAID IT ASKED STATE REGULATORS FOR AN AVERAGE 8 OR 4603 MILLION RATE INCREASE THE CHICAGO UTILITY SAID THAT IF IT IS APPROVED THE RATE HIKE WOULD LIKELY BECOME EFFECTIVE IN 1995 BECAUSE THE ILLINOIS COMMERCE COMMISSION CAN TAKE AS LONG AS 11 MONTHS TO RENDER A DECISION EDISON CONTENDS THAT IT MUST HAVE HIGHER RATES IF IT IS TO REMAIN FINANCIALLY VIABLE ITS FINANCIAL STRENGTH HAS BEEN COMPROMISED IN RECENT YEARS IT SAID BECAUSE WE HAVE NOT RECEIVED A RATE INCREASE SINCE 1985 THAT WAS NOT LATER REFUNDED EXCEPT FOR A 27 INCREASE IN 1991 EDISON SAID ITS REQUEST SEEKS CLEARANCE TO INCREASE RATES TO RESIDENTIAL CUSTOMERS BY 36 PERCENTAGE POINTS MORE THAN THE BOOST PROPOSED FOR LARGE COMMERCIAL AND INDUSTRIAL CUSTOMERS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMMONWEALTH EDISON CLOSED AT 26375 DOWN 75 CENTS 9402110032 940211 ABREAST OF THE MARKET STOCKS SLIDE AMID DROP IN BONDS CAUTIOUS COMMENTS BY GARZARELLI BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK CAUTIOUS COMMENTS BY INFLUENTIAL LEHMAN BROTHERS INC ANALYST ELAINE GARZARELLI COMBINED WITH WEAK BONDS AND SELL PROGRAMS TO DRIVE STOCK PRICES BROADLY LOWER THE DOW JONES INDUSTRIAL AVERAGE CLOSED NEAR ITS SESSION LOW OF 389534 BELOW THE PSYCHOLOGICALLY IMPORTANT 3900 LEVEL THE LOSS REPRESENTS A 3658POINT OR 093 SLIDE WHILE STOCKS GYRATED ALL SESSION LONG THE DOW INDUSTRIALS TOOK AN INITIAL 25POINT NOSEDIVE AROUND NOON AFTER MS GARZARELLI REPEATED HER VIEW ON CABLETELEVISION NETWORK CNBC THAT A 4 TO 7 MARKET CORRECTION IS POSSIBLE A SPOKESWOMAN IN MS GARZARELLI'S OFFICE SAID THE ANALYST HASN'T CHANGED HER BULLISH STANCE SHE SAID MS GARZARELLI HAS STATED THAT A CORRECTION OF THAT SIZE WOULD BE NORMAL FOR THE MARKET A LARGER CORRECTION OF 10 OR MORE THE SPOKESWOMAN SAID WOULDN'T HAPPEN UNLESS THE FEDERAL RESERVE TIGHTENED CREDIT CONDITIONS AT LEAST ONCE OR TWICE MORE IN MS GARZARELLI'S VIEW WEAK BOND PRICES ALSO HURT EQUITIES THE TREASURY'S LONG BOND FELL 1/2 POINT PUSHING ITS YIELD UP TO 644 AFTER THE 30YEAR BOND AUCTION BROADER INDEXES ALSO FELL YESTERDAY THE STANDARD & POOR'S 500STOCK INDEX FELL 384 OR 081 TO 46893 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID 186 OR 071 TO 26104 BIG BOARD DECLINERS TRAMPLED ADVANCERS 1311 TO 811 VOLUME TOTALED 325755000 SHARES COMPARED WITH 332597000 WEDNESDAY THE AVERAGE PRICE PER SHARE FELL 25 CENTS THE NASDAQ COMPOSITE INDEX SLIPPED 311 OR 040 TO 78342 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 146 TO 47913 AMONG CYCLICALS THE BIG THREE AUTO MAKERS LED THE MARCH DOWNWARD GENERAL MOTORS LOST 1 3/4 TO 62 1/2 ALTHOUGH IT REPORTED A FOURTHQUARTER PROFIT OF 128 A SHARE ANALYSTS SAID INVESTORS WERE CONCERNED ABOUT THE FAILURE OF GM'S EARNINGS TO SURPASS EXPECTATIONS CHRYSLER FELL 1 5/8 TO 59 3/4 AND FORD MOTOR SLID 2 1/2 TO 66 OTHER ECONOMICALLY SENSITIVE STOCKS ALSO FELL CATERPILLAR INC DECLINED 2 3/4 TO 106 1/8 GENERAL ELECTRIC LOST 1 3/4 TO 106 1/2 AND PHILIP MORRIS FELL 1 3/8 TO 57 3/4 MERGER NEWS CARRIED SOME STOCKS HIGHER ELECTRONIC ARTS NASDAQ A SAN MATEO CALIF INTERACTIVE ENTERTAINMENT SOFTWARE CONCERN JUMPED 3 1/2 TO 29 THE COMPANY WILL ACQUIRE BRODERBUND SOFTWARE NASDAQ IN A STOCK SWAP VALUED AT ABOUT 400 MILLION BRODERBUND NOVATO CALIF SURGED 4 5/8 TO 45 7/8 COLUMBIA HEALTHCARE LOUISVILLE KY GAINED 2 7/8 TO 40 1/2 AND HCAHOSPITAL CORP OF AMERICA NASHVILLE TENN ROSE 2 3/4 TO 42 3/8 THE COMPANIES SAID THEY HAVE COMPLETED THEIR MERGER COLUMBIA HEALTHCARE LED THE BIG BOARD'S MOSTACTIVE LIST WITH 94 MILLION SHARES TRADED UP FROM AVERAGE DAILY VOLUME OF 905800 IN EARNINGS NEWS CAPITAL HOLDING SLID 2 5/8 TO 32 1/2 AFTER THE LOUISVILLE KY INSURER SAID ITS FOURTHQUARTER OPERATING NET INCOME OF 90 CENTS A SHARE WAS BELOW EARNINGS OF 95 CENTS EXPECTED BY ANALYSTS KEMPER SECURITIES INC CUT ITS RATING ON CAPITAL HOLDING TO HOLD FROM LONGTERM BUY CITING THE DISAPPOINTING RESULTS BRITISH PETROLEUM AMERICAN DEPOSITARY SHARES DROPPED 1 1/2 TO 66 3/4 THE COMPANY SAID ITS FOURTHQUARTER REPLACEMENTCOSTBASIS PROFIT FELL TO 54 MILLION 789 MILLION AFTER A 261 MILLION CHARGE A YEAR EARLIER BRITISH PETROLEUM HAD A REPLACEMENTCOSTBASIS PROFIT OF 193 MILLION AMERICAN DEPOSITARY RECEIPTS OF LM ERICSSON NASDAQ FELL 2 3/4 TO 42 3/8 ALTHOUGH THE SWEDISH TELECOMMUNICATIONS COMPANY POSTED A 1993 PRETAX PROFIT THAT MORE THAN DOUBLED TO 31 BILLION KRONOR 3869 MILLION FROM 131 BILLION KRONOR IN 1992 CML GROUP ACTON MASS ADDED 1 3/4 TO 19 1/2 IN HEAVY TRADING ON EXPECTATIONS THAT ITS FISCAL SECONDQUARTER RESULTS WILL EXCEED ORIGINAL FORECASTS ANALYSTS SAID GTECH HOLDINGS A WEST GREENWICH RI ONLINE LOTTERY NETWORKS FIRM JUMPED 3 1/4 TO 32 1/4 THE COMPANY SAID ITS GTECH ADMINISTRATIVE SERVICES SUBSIDIARY SIGNED A CONTRACT VALUED AT MORE THAN 200 MILLION OVER SEVEN YEARS WITH THE TEXAS DEPARTMENT OF HUMAN SERVICES TO PROVIDE A SYSTEM FOR THE ELECTRONIC TRANSFER OF FOOD STAMP PROGRAM BENEFITS AND BENEFITS UNDER THE AID TO FAMILIES WITH DEPENDENT CHILDREN PROGRAM SOME TRADERS SAID THAT IN ADDITION TO LATE SELL PROGRAMS WHICH BROUGHT THE DOW INDUSTRIALS BROADLY LOWER RIGHT BEFORE THE CLOSE STOCK PRICES ALSO MIGHT HAVE FALLEN ON A RUMOR OF TRADING LOSSES AT A MAJOR WALL STREET FIRM YESTERDAY'S SESSION WAS INDICATIVE OF THE NERVOUSNESS OUT THERE SAID EDWARD E COLLINS III EXECUTIVE VICE PRESIDENT OF INSTITUTIONAL TRADING AT DAIWA SECURITIES AMERICA WE HAD THE BIGGEST BULL ON WALL STREET TALKING ABOUT A CORRECTION HE SAID REFERRING TO MS GARZARELLI THE PROGRAMS EXACERBATED EVERYTHING OTHERS ADDED THAT INVESTORS ARE SKITTISH ABOUT TODAY'S RELEASE OF JANUARY PRODUCER PRICES WE'RE IN A VERY TWITCHY MOOD HERE SAID CUMMINS CATHERWOOD MANAGING DIRECTOR AT RUTHERFORD BROWN & CATHERWOOD THERE'S AN ASTOUNDING HERDMENTALITY HERE AND WHEN THEY GET STARTED IT'S HARD TO TURN THAT HERD DOUG KASS HEAD OF RESEARCH AT JW CHARLES SECURITIES INC SAID THE UNDERLYING STORY YESTERDAY WAS THE CONTINUING SICKLY PERFORMANCE OF THE UTILITY INDEX THE DOW JONES UTILITY AVERAGE FELL 356 TO 21540 THE DECLINE IN THE UTILITY AVERAGE TENDS TO PRESAGE MARKET DECLINES MR KASS SAID THE DETERIORATION IN THAT AVERAGE IS GROWING MORE AND MORE CONSPICUOUS AND MORE AND MORE OMINOUS IT COULD BE THE DEATH KNELL FOR THE MARKET 9402110031 940211 MARKETING & MEDIA ADVERTISING NETWORKS' PROMOTIONAL CLUTTER LITTERS LANDSCAPE FOR PAID ADS BY KEVIN GOLDMAN THE TELEVISION NETWORKS THINK THEY'VE FOUND A WAY TO HOLD ONTO VIEWERS TREAT SHOWS LIKE PACKAGED GOODS AND BOMBARD CONSUMERS WITH PROMOTIONAL ANNOUNCEMENTS FOR THEM ADVERTISERS HOWEVER DON'T LIKE THE COMPANY NONPROGRAMMING CLUTTER IS ON THE RISE AND THE CULPRITS ARE THE BROADCAST AND CABLE NETWORKS THEMSELVES THEY'RE JAMMING EVERY POSSIBLE MOMENT WITH PROMOTIONS FOR THEIR SHOWS SAYS A NEW STUDY PAID FOR BY THE ASSOCIATION OF NATIONAL ADVERTISERS AND THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES MOREOVER MATT MILLER DIRECTOR OF MEMBER SERVICES OF THE ANA SAYS THE NETWORKS AREN'T DECREASING THE NUMBER OF COMMERCIALS TO MAKE WAY FOR MORE PROMOTIONAL ANNOUNCEMENTS INSTEAD HE SAYS THE SHOWS THEMSELVES ARE GROWING SLIGHTLY SHORTER THE STUDY CONDUCTED BY COMPETITIVE MEDIA REPORTING AND MEDIA WATCH SHOWS THAT EACH BROADCAST NETWORK CLOCKED IN WITH AN INCREASE IN COMMERCIALS AND PROMOTIONS IN ONE WEEK STUDIED LAST NOVEMBER COMPARED WITH THE CORRESPONDING WEEK IN NOVEMBER 1992 ONLY FOX A UNIT OF NEWS CORP HAD FEWER PROMOTIONS NOVEMBER IS ONE OF FOUR SOCALLED SWEEPS MONTHS WHEN LOCAL AD RATES ARE DETERMINED THROUGH AC NIELSEN RATINGS WHILE COMMERCIAL CLUTTER IS ANNOYING TO THE CASUAL COUCH POTATO IT IS PARTICULARLY IRKSOME TO MADISON AVENUE ADVERTISERS PAY ON AVERAGE 110000 FOR A HALFMINUTE SPOT DURING THE 199394 PRIME TIME SEASON THUS AD EXECUTIVES REGISTER DISPLEASURE WITH ANYTHING THAT MAY LESSEN THE IMPACT OF THEIR OWN EXPENSIVE MESSAGES THE CLUTTER ISSUE IS A REAL DILEMMA ON ONE HAND NETWORKS SAY THEY MUST INCREASE COMMERCIALINVENTORY OR RAISE ALREADY STEEP RATES ON THE OTHER HAND ADVERTISERS FEEL THAT TOO MANY PROGRAMMING INVASIONS OCCUR NOW THE MORE COMMERCIALS THAT ARE HITTING THE CONSUMER'S BRAIN AND EYES THE LESS EFFECTIVE THE ADVERTISING IS SAYS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING WE BEAT UP THE NETWORKS AND SAY PLEASE DON'T RUN SO MANY PROMOTIONS' IT'S NOT HOW LONG THE PROMOS ARE EITHER IT'S THE QUANTITY ADDS STEVE GRUBBS A SENIOR VICE PRESIDENT AT OMNICOM GROUP'S BBDO THE NETWORKS ARE EATING THEIR YOUNG THEY'RE TURNING OFF VIEWERS AND THAT ISN'T IN ANYONE'S INTEREST HOW BAD HAS IT BECOME THIS WEEK FOR EXAMPLE WNYW THE FOXOWNED STATION IN NEW YORK SHRANK THE CLOSING CREDITS DURING MELROSE PLACE SO THAT HALF THE SCREEN COULD BE OCCUPIED BY THE ANCHORMAN OF THE LOCAL NEWS TO PROMOTE THE UPCOMING NEWSCAST THEN A SECOND PROMOTION FOR FOX'S HIT MARRIED WITH CHILDREN APPEARED IN THE LOWER RIGHTHAND CORNER OF THE SCREEN SHOWING THE MELROSE PLACE CREDITS THE INCREASING NUMBER OF PROMOS IS TROUBLING ESPECIALLY SINCE THE NETWORKS CAN CONTROL THAT FATE SAYS BETSY FRANK A SENIOR VICE PRESIDENT OF SAATCHI & SAATCHI ADVERTISING CBS THE NO 1 NETWORK IN HOUSEHOLD PRIME TIME RATINGS OBVIOUSLY FEELS IT HAS A LOT TO PROMOTE INCLUDING ITS RELATIVELY NEW LATE SHOW WITH DAVID LETTERMAN DURING ONE HOUR IN PRIME TIME LAST NOVEMBER CBS RAN 13 MINUTES AND 53 SECONDS OF SOCALLED NONPROGRAMMING MATERIAL OF WHICH FOUR MINUTES AND TWO SECONDS WERE PROMOTIONAL ANNOUNCEMENTS AND CREDITS THE BALANCE OF THE TIME WENT TO PAID ADVERTISING AND PUBLIC SERVICE ANNOUNCEMENTS THAT COMPARES WITH NOVEMBER 1992 WHEN THE NETWORK BROADCAST 13 MINUTES AND 24 SECONDS OF NONPROGRAMMING MATERIAL THREE MINUTES AND 37 SECONDS OF WHICH WERE PROMOS CAPITAL CITIES/ABC RAN FOUR MINUTES AND TWO SECONDS OF PROMOTIONAL ANNOUNCEMENTS IN A ONEHOUR PERIOD THAT INCLUDED 13 MINUTES AND 24 SECONDS OF NONPROGRAMMING MATERIAL GENERAL ELECTRIC'S NBC NETWORK BROADCAST THREE MINUTES AND 44 SECONDS OF ITS OWN PROMOTIONAL ANNOUNCEMENTS DURING AN HOUR OF 13 MINUTES AND 43 SECONDS OF NONPROGRAMMING MATERIAL AN ABC SPOKESMAN WHO SAID THE NETWORK HAS BEEN UNDER THE SAME INTERNAL GUIDELINES FOR THE PAST 18 MONTHS DECLINED FURTHER COMMENT A CBS SPOKESWOMAN SAID THE NETWORK'S EXECUTIVES WERE TRAVELING YESTERDAY TO THE WINTER OLYMPICS AND COULDN'T BE REACHED FOR COMMENT A SPOKESWOMAN AT NBC SAID THE NETWORK SOMETIMES RECEIVES SHORT SHOWS FROM THE STUDIOS AND THE FIRST THING WE REACH FOR TO FILL THE TIME IS A NETWORK PROMO FOX COULDN'T BE REACHED FOR COMMENT MR MILLER SAYS ONE STARTLING EXAMPLE WAS CBS WHICH STRETCHED THE LENGTH BETWEEN PRIME TIME SHOWS TO A NUMBING SIX MINUTES ONE EVENING ONCE CREDITS ADS AND PROMOTIONAL ANNOUNCEMENTS CONCLUDED SOME CLOSING CREDITS OF SERIES WEREN'T LUMPED INTO THE DUBIOUS CATEGORY OF NONPROGRAMMING SHOWS SUCH AS HOME IMPROVEMENT ON ABC AND NBC'S EMPTY NEST AND NURSES ACTUALLY CONTINUE THE SHOW OR INCLUDE OUTTAKES INTO THE CREDITS WE REWARDED THOSE SITUATIONS SAYS MR MILLER ANYTHING THAT KEEPS THE VIEWER INTERESTED AND KEEPS THE INDIVIDUAL FROM CHANNELSURFING ISN'T CONSIDERED CLUTTER MADISON AVENUE HAS GROWN INCREASINGLY CONCERNED OVER THE EASE AT WHICH VIEWERS CAN TUNE OUT ONCE A COMMERCIAL POPS UP MANY VIEWERS ARMED WITH REMOTE CONTROL CAN EASILY ZAP THROUGH INTRUSIVE ADS AND ANNOUNCEMENTS AND THERE ARE MORE PROGRAMMING ALTERNATIVES THAN EVER INCLUDING VIDEOCASSETTES AND CABLE CABLE HOWEVER IS NO LONGER A HAVEN FOR THE WEARY IN FACT OF 16 CABLE NETWORKS REVIEWED BY THE STUDY ALL AIRED MORE NONPROGRAMMING UNITS THAN ANY BROADCAST NETWORK AND MOST OF IT WAS PRODUCT ADVERTISING ESPN THE ALLSPORTS NETWORK WAS THE LOWEST WITH 13 MINUTES 28 SECONDS FOUR SECONDS MORE THAN ABC THE AMOUNTS STEADILY INCREASE THROUGH MTV 14 MINUTES 32 SECONDS CNBC 15 MINUTES 5 SECONDS TO THE MOST CLUTTERED NETWORK DISCOVERY 17 MINUTES 20 SECONDS DAYTIME CONTINUES TO BE THE MOST CLUTTERED PERIOD ON BROADCAST TELEVISION WITH CBS LEADING THE CHARGE THE NETWORK HAD 19 MINUTES 26 SECONDS OF ADS AND PROMOTIONAL ANNOUNCEMENTS COMPARED WITH 18 MINUTES 34 SECONDS ON ABC AND 18 MINUTES 12 SECONDS ON NBC FOX DOESN'T AIR PROGRAMS DURING THE DAY MR MILLER SAYS THE ANA PLANS TO CONTACT THE BROADCAST AND CABLE NETWORKS TO TRY AND TALK WITH THEM ABOUT THE CLUTTER SITUATION BUT HE ADDS IT ISN'T EASY TO TALK TO THEM ADVERTISERS STILL LINE UP WITH MONEY TO BUY TIME ON THE SHOWS EGGLAND'S BEST SETTLED DECEPTIVE ADVERTISING CHARGES BY AGREEING TO STOP MAKING CLAIMS THAT ITS EGGS ARE SUPERIOR TO OTHER EGGS BECAUSE THEY DON'T RAISE CONSUMERS' BLOOD CHOLESTEROL LEVELS THE FEDERAL TRADE COMMISSION HAD CHARGED EGGLAND'S BASED IN KING OF PRUSSIA PA WITH FALSELY CLAIMING THAT STUDIES PROVED CONSUMERS FOLLOWING A LOWFAT DIET COULD ALSO EAT 12 EGGLAND'S EGGS PER WEEK WITHOUT INCREASING THEIR CHOLESTEROL LEVELS THE FTC CITED ADS CREATED BY THE AYER AD AGENCY IN NEW YORK THAT SAID EGGLAND'S EGGS WON'T INCREASE YOUR SERUM CHOLESTEROL ANOTHER AD CLAIMED IN CLINICAL TESTS IN A LOWFAT DIET EVEN 12 A WEEK CAUSED NO INCREASE IN SERUM CHOLESTEROL ROBERT FUHRMAN EGGLAND'S PRESIDENT SAID THE ADS STATE THAT EGGLAND'S EGGS HAVE ABOUT THE SAME AMOUNT OF CHOLESTEROL AS OTHER EGGS EVEN THOUGH THEY HAVE A DIFFERENT EFFECT ON BLOOD CHOLESTEROL LEVELS IF WE SAY PEOPLE CAN EAT THE EGGS AND THEY WON'T RAISE THEIR CHOLESTEROL SOME OF THEM JUMP TO THE CONCLUSION THAT THESE ARE LOWERCHOLESTEROL EGGS HE SAID THE COMPANY PLANS TO CONTINUE REFERRING TO THE CHOLESTEROL STUDIES IN ITS ADS MR FUHRMAN SAID THOSE STUDIES COMPARED PEOPLE ON A LOWFAT DIET WHO EITHER ATE EGGLAND'S EGGS OR ATE NO EGGS AT ALL UNDER THE SETTLEMENT HOWEVER EGGLAND'S MUST DISCLOSE IN ADS THE CHOLESTEROL CONTENT OF ITS EGGS AND STATE IT AS A PERCENTAGE OF THE MAXIMUM DAILY AMOUNT RECOMMENDED BY THE FOOD AND DRUG ADMINISTRATION THE COMPANY ALSO HAS AGREED TO PUT A DISCLAIMER ON PACKAGES THERE ARE NO STUDIES SHOWING THAT THESE EGGS ARE DIFFERENT FROM OTHER EGGS IN THEIR EFFECT ON SERUM CHOLESTEROL THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A WASHINGTON CONSUMER ADVOCACY GROUP SAID THE SETTLEMENT DOESN'T GO FAR ENOUGH BECAUSE THE FTC DIDN'T APPLY THE SAME STANDARDS ADOPTED BY THE FDA FOR HEALTH CLAIMS ON FOOD LABELS MIDOL AYER NEW YORK WHICH LOST STERLING WINTHROP'S BIG BAYER ASPIRIN ACCOUNT LAST WEEK LOST THE LAST OF THAT CLIENT'S BUSINESS STERLING MOVED THE ESTIMATED 4 MILLION MIDOL MENSTRUAL PAIN RELIEVER ACCOUNT TO AMMIRATI & PURIS NEW YORK AMMIRATI ALREADY HANDLES THE PHILLIPS' LAXATIVE ACCOUNT STERLING IS A UNIT OF EASTMAN KODAK CO REVIEW LENOX INC THE CHINA AND CRYSTAL UNIT OF BROWNFORMAN CORP SAID IT HAS STARTED A REVIEW OF ITS AD ACCOUNT BILLINGS COULDN'T BE DETERMINED LENOX'S CURRENT AGENCY FOOTE CONE & BELDING COMMUNICATIONS' FCB/LEBER KATZ PARTNERS WON'T PARTICIPATE THE CLIENT SAID KEDS STRIDE RITE CORP SAID IT INVITED SIX AGENCIES TO PITCH ITS 20 MILLION ACCOUNT INCLUDING TWO BOSTON SHOPS HILL HOLLIDAY CONNORS COSMOPULOS AND ARNOLD FORTUNA LAWNER & CABOT AND FOUR NEW YORK AGENCIES OMNICOM GROUP'S BBDO D'ARCY MASIUS BENTON & BOWLES KIRSHENBAUM & BOND AND WPP GROUP'S OGILVY & MATHER A DECISION IS EXPECTED IN MARCH 9402110030 940211 MARKETING & MEDIA NINTENDO'S US UNIT SIDESTEPS CDROM IN NEW GAME PLANS REDMOND WASH NINTENDO OF AMERICA INC BETTING ITS CHIPS ON MICROCHIPS SAID ITS NEXTGENERATION VIDEOGAME MACHINE WILL CONTINUE TO BE BASED ON CARTRIDGE PLAY RATHER THAN CDROM THE 64BIT GAME SYSTEM CODE NAMED PROJECT REALITY IS BEING DEVELOPED BY NINTENDO THE US UNIT OF JAPAN'S NINTENDO CO AND SILICON GRAPHICS INC MOUNTAIN VIEW CALIF IT IS SET TO MAKE ITS DEBUT IN ARCADES DURING THE FOURTH QUARTER FOLLOWED BY A WORLDWIDE LAUNCH TO HOMES NEXT YEAR NINTENDO SAID THE HOME MACHINES WOULD BE BROUGHT TO MARKET FOR UNDER 250 PROJECT REALITY WILL SUCCEED NINTENDO'S CURRENT MAINSTAY PLAYER A 16BIT MACHINE CALLED THE SUPER NINTENDO ENTERTAINMENT SYSTEM PROJECT REALITY WILL BE POWERED BY SILICON GRAPHICS' SPEEDY MIPS MICROPROCESSOR PROVIDING FIVE TO SIX TIMES THE MEMORY OF THE CURRENT 16BIT NINTENDO GAMES AND ALLOWING FOR SUPERIOR GRAPHICS SOUND AND MUSIC SILICON GRAPHICS' OFFICIALS SAID THEIR MIPS CHIP IS SO FAST AT ACCESSING DATA THAT GAME IMAGES WILL APPEAR INSTANTLY RATHER THAN AT THE SLIGHT DELAY ASSOCIATED WITH CDROMS COMPACT DISK READONLYMEMORY MARK HANNAH SILICON GRAPHIC'S CHIEF SCIENTIST SAID THE MIPS CHIP WOULD ALSO ENABLE PROJECT REALITY MACHINES TO RUN VIDEO AT FULL MOTION ON THE TELEVISION SCREEN RATHER THAN IN THE JERKY IMAGES NOW PREVALENT ON WEAKER SYSTEMS NINTENDO HOPES PROJECT REALITY WILL HELP IT RECAPTURE MARKET SHARE FROM ARCHRIVAL SEGA OF AMERICA INC A UNIT OF JAPAN'S SEGA ENTERPRISES LTD WHICH HAS MADE HUGE INROADS INTO NINTENDO'S ONCE DOMINANT HOLD ON THE 6 BILLIONAYEAR US VIDEOGAME MARKET BUT ANALYSTS SAY NINTENDO ISN'T LIKELY TO REGAIN THE DOMINANCE IT HELD IN THE LATE 1980S WHEN COMPETITION WAS SCARCE BESIDES SEGA WHICH IS WORKING WITH HITACHI LTD TO DEVELOP A NEW VERSION OF THE SEGA GENESIS PLAYER NINTENDO FACES COMPETITION FROM SMALLER RIVALS INCLUDING 3DO CO AND ATARI CORP 9402110029 940211 BUSINESS BRIEF CISCO SYSTEMS INC NET INCOME NEARLY DOUBLED FOR FISCAL SECOND QUARTER BOOSTED BY SALES OF ITS COMPUTERNETWORKING PRODUCTS CISCO SYSTEMS INC SAID ITS NET INCOME NEARLY DOUBLED FOR ITS FISCAL SECOND QUARTER FOR THE QUARTER ENDED JAN 30 CISCO MENLO PARK CALIF POSTED NET INCOME OF 775 MILLION OR 29 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 387 MILLION OR 15 CENTS A SHARE THE PERSHARE FIGURES REFLECT A TWOFORONE STOCK SPLIT EFFECTIVE MARCH 4 SALES IN THE QUARTER MORE THAN DOUBLED TO 302 MILLION COMPARED WITH 145 MILLION A YEAR EARLIER FOR THE SIX MONTHS CISCO EARNED 141 MILLION OR 53 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 72 MILLION OR 28 CENTS A SHARE SALES INCREASED TO 5506 MILLION COMPARED WITH 2715 MILLION A YEAR AGO 9402110028 940211 REVIEW & OUTLOOK EDITORIAL ASIDES STANDS BY HIS MAN ON THE SAME DAY HE WAS ACCUSING CRITICS OF HIS HEALTH CARE PLAN OF PROPAGANDA PRESIDENT CLINTON WAS ALSO QUOTED IN YESTERDAY'S NEWS HEAPING OBLOQUY ON CRITICS OF DEVAL PATRICK HIS NOMINEE FOR JUSTICE'S CIVILRIGHTS POST MR CLINTON SAYS THE CRITICS NEVER BELIEVED IN THE CIVILRIGHTS LAWS THEY NEVER BELIEVED IN EQUAL OPPORTUNITY THEY NEVER LIFTED A FINGER TO GIVE ANYBODY OF A MINORITY RACE A CHANCE IN THIS COUNTRY THIS IS A VERY ENCOURAGING PERFORMANCE IT SUGGESTS THAT MR CLINTON HAS DECIDED IT IS TIME TO PERSONALLY STAND BY HIS NOMINEES 9402110027 940211 POTOMAC WATCH IN PRAISE OF HONEST LIBERALS SORRY BILL BY PAUL A GIGOT BEHOLD A MIRACLE SAID DIOGENES THE CYNIC AN HONEST MAN BILL CLINTON'S WASHINGTON HAS JUST PRODUCED ITS OWN MIRACLE AN HONEST LIBERAL TWO OF THEM IN FACT AND FROM CONGRESS NO LESS THEY DESERVE PRAISE FOR TELLING TRUTHS THAT THE LIBERALS WHO OCCUPY THE WHITE HOUSE WON'T DARE UTTER THE FIRST BLAST OF CANDOR CAME FROM ROBERT REISCHAUER WHO RUNS THE CONGRESSIONAL BUDGET OFFICE THIS WEEK HE CALLED THE CLINTON HEALTH CARE PLAN AN EXERCISE OF SOVEREIGN POWER THUS CONFIRMING THE ARGUMENTS OF CRITICS WHO CALL IT A VAST FEDERAL INTRUSION INTO AMERICAN MEDICINE MR REISCHAUER THEN EXPOSED MORE OF THE EMPRESS'S NEW CLOTHES BY SAYING THAT WHAT THE WHITE HOUSE CALLS PRIVATE HEALTH PREMIUMS WOULD REALLY BE GOVERNMENTAL RECEIPTS WHICH IS WHAT NORMAL FOLKS CALL TAXES THE WHITE HOUSE TRIED TO DISSUADE MR REISCHAUER FROM TAKING THIS LINE THEN SPUN ITS TYPICALLY NIMBLE 180TURN TO SAY IT DIDN'T MATTER THAT'S A WASHINGTON POLICY WONK DEAL SAID PRESIDENT CLINTON THE MAN FOR WHOM THE WORD WONK WAS POPULARIZED THE PRESIDENT MIGHT HAVE BEEN MORE BELIEVABLE IF HE'D HEEDED REP JIM MCDERMOTT A SEATTLE DEMOCRAT AND THE OTHER HONEST LIBERAL ABOUT MR REISCHAUER'S REMARKS REP MCDERMOTT SAYS I THINK THIS GIVES US A CHANCE TO MAKE THE DEBATE A WHOLE LOT MORE HONEST AND STRAIGHTFORWARD DR MCDERMOTT IS THE LEAD SPONSOR IN THE HOUSE OF THE SINGLEPAYER HEALTH PLAN WHICH WOULD RESEMBLE CANADA'S GOVERNMENTRUN SYSTEM TWO WEEKS AGO HE PROPOSED TO PAY FOR THIS PLAN WITH IN PUBLIC NO LESS IN FULL VIEW OF VOTERS AN 84 PAYROLL TAX HE EVEN USED THE T WORD MY STAFF WANTS ME TO USE THE WORD PREMIUM BUT I'M A PHYSICIAN I SAY TELL PEOPLE THE PROBLEM DR MCDERMOTT SAYS WHAT'S THE DIFFERENCE BETWEEN A PREMIUM AND A TAX THE ANSWER IS POLITICS THE ISSUE THAT THE PRESIDENT HAS BEEN STRUGGLING WITH IN HIS PROPOSAL IS HOW TO HIDE THE FACT THAT THERE'S ANY GOVERNMENT INVOLVED SAYS DR MCDERMOTT A PSYCHIATRIST WHY IS THAT MY VIEW IS THEY TOOK A POLL HE EXPLAINS AND FOUND WHAT I COULD HAVE TOLD THEM FOR A 25CENT PHONE CALL THAT THE AMERICAN PEOPLE SAY THEY DON'T WANT TO PAY TAXES AND DON'T TRUST GOVERNMENT PROGRAMS HE ISN'T JUST GUESSING MR CLINTON'S POLLSTER STAN GREENBERG TOLD AN AUDIENCE AT THE AMERICAN ENTERPRISE INSTITUTE IN DECEMBER THAT HIS POLLING HELPED BLOCK ANY PROPOSAL FOR A VALUEADDED TAX UNDERSTANDABLY DR MCDERMOTT BLAMES RONALD REAGAN AND OTHER ANTIGOVERNMENT VILLAINS FOR THIS SENTIMENT BUT HIS ANSWER ISN'T TO DISSEMBLE OR DISGUISE IT IS TO PERSUADE CLINTON WOULD HAVE DONE MUCH BETTER TO TAKE THE ISSUES OF TAXES AND GOVERNMENT HEAD ON HE SAYS HE CAN EXPLAIN THAT THIS IS A PROBLEM GOVERNMENT CAN SOLVE HAILING FROM SEATTLE THE BERKELEY OF THE NORTHWEST DR MCDERMOTT CAN AFFORD TO BE THIS BLUNT FIDEL CASTRO WILL WIN IN HIS DISTRICT BEFORE A REPUBLICAN QUIPS SEATTLE TIMES COLUMNIST JOHN CARLSON BUT HIS CANDOR ALSO EXPOSES THE FOG OF EUPHEMISM WITH WHICH THE CLINTONS HAVE SHROUDED SO MUCH OF THEIR PRESIDENCY AND ESPECIALLY THEIR HEALTH PLAN IN CLINTONSPEAK PRICE CONTROLS ARE PREMIUM CAPS BUREAUCRACIES ARE ALLIANCES AND AN HMO IS CHOICE FAR FROM ACKNOWLEDGING GOVERNMENT'S ROLE MR CLINTON KEEPS INSISTING THAT HIS PLAN MERELY INVOLVES GUARANTEED PRIVATE INSURANCE MORE ORWELLIAN YET ANYONE WHO TRIES TO CHALLENGE THIS INTERPRETATION SUCH AS THE MANHATTAN INSTITUTE'S ELIZABETH MCCAUGHEY IS ACCUSED OF SPREADING LIES HILLARY RODHAM CLINTON IS SO DOGGED THAT SHE WON'T EVEN ADMIT WHAT'S IN HER OWN BILL SHE PRAISES THE FAMOUS MAYO CLINIC IN ROCHESTER MINN FOR EXAMPLE BUT MAYO'S PRESIDENT RECENTLY TOLD HER AT A MEETING WITH OTHER EXECUTIVES THAT HE COULDN'T SUPPORT HER REFORM HIS BOARD WOULDN'T ALLOW MAYO TO SPEND MORE ON RESEARCH IN A WORLD BOUND BY PRICE CONTROLS HE SAID POLITELY MRS CLINTON REPLIED THAT HER BILL HAD NO SUCH CONTROLS WHEN ANOTHER EXECUTIVE SPOKE UP TO LIST THEM SHE CHANGED THE SUBJECT THE GROUP FINALLY SENT HER OFFICE A TWOPAGE SUMMARY OF THE PRICE CONTROLS IN THE BILL SHE HASN'T WRITTEN BACK JIM MCDERMOTT'S BILL IS CERTAINLY MORE LEFTWING THAN MRS CLINTON'S THOUGH NOT NEARLY AS MUCH AS ADVERTISED BUT EVEN A RIGHTWINGER HAS TO ADMIT IT'S FAR MORE ADMIRABLE BECAUSE IT'S HONEST ABOUT ITS INTENTIONS DR MCDERMOTT THINKS HE CAN GET A MAJORITY OF 218 HOUSE VOTES FOR HIS BILL IF MR CLINTON CARRIES SINGLEPAYER PRINCIPLES TO THE PUBLIC I SUSPECT HE'S WRONG WHICH MAY BE WHY HE HAS ONLY 92 COSPONSORS BUT THAT IS WHAT A DEBATE IS SUPPOSED TO BE ABOUT PRINCIPLES THE CLINTONS KEEP SAYING AMERICANS MUST HAVE THE COURAGE TO CHANGE BUT WHY SHOULD ANYONE TAKE THAT RISK WHEN THE CLINTONS DON'T EVEN HAVE THE COURAGE TO BE CANDID ABOUT THE CHANGE THEY REALLY WANT 9402110026 940211 REVIEW & OUTLOOK EDITORIAL THE CALL OF DUTY IT WAS A STORY THAT HAD EVERYTHING DANGER COURAGE TRIUMPH OVER HEAVY ODDS AND A HEROINE OF SURPASSING MODESTY THE SCENE THAT FOLLOWED HAD SOMETHING FOR EVERYONE TOO THERE AT NEW YORK'S CITY HALL ON MONDAY STOOD OFFICER ARLENE BECKLES SURROUNDED BY FAMILY A FIANCE HAPPY POLICE BRASS AND A BEAMING MAYOR RUDOLPH GIULIANI THEY WERE ON HAND ALONG WITH LEGIONS OF CAMERAMEN AND REPORTERS TO WATCH NEW YORK'S NEW POLICE COMMISSIONER WILLIAM BRATTON AWARD OFFICER BECKLES A DETECTIVE SHIELD THE POLICEWOMAN'S PATH TO THAT SHIELD BEGAN WITH AN OFFDUTY VISIT TO A DOWNTOWN BROOKLYN BEAUTY PARLOR AS OFFICER BECKLES SAT UNDER THE HAIRDRYER AT THE SALON LA MODE LAST SATURDAY THREE ARMED THUGS ENTERED ANNOUNCED A ROBBERY AND BEGAN HERDING CUSTOMERS AND STAFF TOWARD THE BACK THE 30YEAROLD OFFICER JUMPED UP AND GOT HER OFFDUTY REVOLVER OUT FROM UNDER HER BEAUTYPARLOR SMOCK BY THE TIME THE ACTION WAS OVER SHE HAD PUMPED BULLETS FROM HER FIVESHOT REVOLVER INTO ALL THREE ROBBERS TWO OF THE WOUNDED ROBBERS FLED ONLY TO BE CAPTURED LATER WHILE POLICE OFFICER BECKLES WITH A TRANSIT OFFICER WHO CAME IN TO HELP SUBDUED THE ONE WHO AROSE TO ATTACK HER AFTER SHE HAD SHOT HIM IN THE NOSE THERE CAN BE NO QUESTION ABOUT WHY OFFICER BECKLES'S PERFORMANCE IN THE LINE OF DUTY WON RAVES FOR AMONG OTHER THINGS PROTECTING THE 15 OR MORE ODD CUSTOMERS IN THE SALON IN ANOTHER DAY AND AGE THE LIKELIHOOD OF MANY LOST LIVES DURING A ROUTINE STORE HOLDUP WAS NOT SO GREAT WE LIVE HOWEVER IN THIS DAY AND AGE IN WHICH IT IS VERY NEARLY ROUTINE PROCEDURE FOR CRIMINALS TO KILL THEIR VICTIMS DURING A ROBBERY TO GET RID OF WITNESSES OFFICER BECKLES WHO WEIGHS IN AT 110 POUNDS TOOK OUT THREE ARMED THUGS IN THE PRIME OF THEIR HOODLUM LIVES ONE OF WHOM WRESTLED HER TO THE GROUND THE VALIANT ONLY TASTE OF DEATH BUT ONCE SHAKESPEARE TELLS US BUT OFFICER BECKLES CAME CLOSE TO TASTING DEATH TWICE WHEN HER REVOLVER EMPTY ONE OF THE WOUNDED THUGS PUT HIS GUN TO HER HEAD HIS GUN FORTUNATELY MISFIRED BOTH TIMES NEW YORK'S NEW POLICE COMMISSIONER DIDN'T NEED OFFICER BECKLES'S CASE TO ENCOURAGE HIM IN THE DECISION MADE THE SAME WEEKEND TO INCREASE THE FIREPOWER OF THE CITY'S POLICE THE POLICE WILL BE GETTING 15ROUND CLIPS FOR THEIR NEW 9MM SEMIAUTOMATIC GUNS INSTEAD OF BEING LIMITED TO THE 10 ROUNDS PREVIOUSLY ALLOWED THEM YET SINCE SOME IN THE CITY STILL PROFESS TO WORRY THAT THE POLICE MIGHT BE TOO WELL ARMED IT DID NOT HURT TO HAVE BEFORE THEM THE CASE OF OFFICER BECKLES WITH AN EMPTY REVOLVER AND THOSE SHE'D ALREADY HIT STILL ATTACKING HER IT DIDN'T HURT EITHER FOR CITIZENS TO HAVE THIS CHANCE TO CELEBRATE ONE LONE LAW ENFORCER'S BIG WIN IN A TIME WHEN THE JUSTICE SYSTEM IS SO DERANGED THAT JUVENILE KILLERS GO UNPUNISHED WHEN LAWYERS ONLY HAVE TO ARGUE CHILD SEX ABUSE TO KEEP JURIES FROM CONVICTING MURDERERS EVERY SUCH WIN OVER SOCIETY'S ENEMIES IS BRACING AND IN NEW YORK WHERE RACIAL QUESTIONS ARE PARTICULARLY TENSE AS A WHITE MAYOR REPLACES A BLACK ONE IT CERTAINLY DID NOT HURT THAT THE CEREMONY AT CITY HALL BROUGHT TOGETHER A MAYOR WHO WON ON A LAWANDORDER CAMPAIGN AND A BLACK WOMAN POLICE OFFICER WHO IS NOW HEROINE OF THE ENTIRE CITY A FITTING REMINDER THAT ALL OF US OWE A DEBT OF GRATITUDE TO ANYONE AS FAITHFUL TO THE CALL OF DUTY AS DETECTIVE BECKLES 9402110025 940211 MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ MARGARETTEN FINANCIAL CORP A RESIDENTIAL MORTGAGE BANKER REPORTED LOAN PRODUCTION OF 705 MILLION FOR JANUARY A 96 INCREASE FROM 643 MILLION A YEAR EARLIER RETAIL CLOSINGS FOR THE MONTH INCREASED 36 TO 436 MILLION FROM 321 MILLION WITH REFINANCINGS ACCOUNTING FOR 47 OF THE VOLUME WHOLESALE PURCHASES ROSE 93 TO 112 MILLION FROM 58 MILLION 9402110024 940211 CORNING BUYS STAKE IN CERAMEM TERMS WEREN'T DISCLOSED CORNING SAID CERAMEM BASED IN WALTHAM MASS IS ONETHIRD OWNED BY ENJAY INC A UNIT OF EXXON CORP THE REMAINING SHARES ARE HELD BY CERAMEM 9402110023 940211 SCIENCE NIH GIVES UP EFFORT TO PATENT PIECES OF GENES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH HAS DROPPED ITS CONTROVERSIAL ATTEMPT TO PATENT THOUSANDS OF FRAGMENTS OF UNIDENTIFIED GENES A MOVE SOME SCIENTISTS HAD PREVIOUSLY CRITICIZED AS BIOLOGY'S VERSION OF A LAND GRAB THE NIH SAID THAT BY ENDING ITS THREEYEAR EFFORT TO PATENT GENE FRAGMENTS FOUND BY ONE OF ITS SCIENTISTS THE GOVERNMENT HOPED TO END AN INTERNATIONAL RUSH BY COMPANIES AND OTHER COUNTRIES TO FILE SIMILAR PATENT CLAIMS BUT AN OFFICIAL IN THE BIOTECHNOLOGY INDUSTRY SAID THE NIH DECISION MAY BE TOO LATE TO STOP AN AVALANCHE OF PATENT APPLICATIONS BY INDUSTRY THAT WAS SET OFF BY THE INITIAL NIH ACTION THE NIH SAID IT WON'T APPEAL A RULING BY THE US PATENT AND TRADE OFFICE IN 1992 STATING THAT THE GENE FRAGMENTS COULDN'T BE PATENTED BECAUSE THE EXACT FUNCTIONS OF THE GENES WERE UNKNOWN THE NIH HAD UNTIL LAST NIGHT TO APPEAL THE PATENT OFFICE DECISION AND MANY GENE RESEARCHERS EXPECTED IT TO PURSUE THE PATENT CLAIMS BUT HAROLD VARMUS THE NEW DIRECTOR OF THE NIH SAID I DO NOT BELIEVE THAT PATENTING AT THIS STAGE PROMOTES TECHNOLOGY DEVELOPMENT AND IT MAY IMPEDE MORE IMPORTANT RESEARCH COLLABORATIONS HERE AND INTERNATIONALLY DR VARMUS'S ACTION REVERSED A DECISION BY HIS PREDECESSOR BERNADINE HEALY TO SEEK PATENTS FOR ABOUT 7000 GENE FRAGMENTS THE FRAGMENTS WERE IDENTIFIED BY J CRAIG VENTER USING A TECHNIQUE HE DEVELOPED TO PLUCK SMALL PIECES OF PREVIOUSLY UNKNOWN GENES OUT OF DNA THE MOLECULE THAT CONTAINS ALL GENETIC INFORMATION DR HEALY SAID THE APPLICATIONS GAVE THE US PROTECTION IN CASE OTHER COUNTRIES USED DR VENTER'S DISCOVERIES TO PURSUE THEIR OWN PATENTS BUT THE APPLICATIONS IGNITED WORLDWIDE PROTEST FROM GOVERNMENTS AND GENETICISTS INVOLVED IN THE INTERNATIONAL COLLABORATIVE EFFORT TO DECIPHER THE ENTIRE COLLECTION OF HUMAN GENES FRANCE AND BRITAIN AMONG OTHER NATIONS CALLED IT UNETHICAL TO PATENT GENES BEFORE KNOWING WHAT THEY ARE AND DEMONSTRATING A PRACTICAL USE FOR THEM EVEN SO BRITAIN'S EQUIVALENT OF THE NIH ALSO FILED PATENT CLAIMS FOR THE GENE FRAGMENTS IN ORDER TO PROTECT ITS DISCOVERIES I THINK DR VARMUS'S DECISION IS A VERY SENSIBLE THING TO DO SAID JAMES WATSON COWINNER OF THE NOBEL PRIZE FOR DISCOVERING THE STRUCTURE OF DNA AS DIRECTOR OF THE GOVERNMENT'S HUMAN GENOME PROJECT DR WATSON PUBLICLY SQUABBLED WITH DR HEALY OVER THE PATENTS HE ARGUED THAT SEEKING OWNERSHIP OVER UNKNOWN GENES WOULD UNDERMINE EFFORTS TO GET GOVERNMENTS UNIVERSITIES AND COMPANIES TO WORK TOGETHER TO SEEK DISEASECAUSING GENES THE DISPUTE LED DR WATSON TO RESIGN HIS GOVERNMENT POSITION EARLIER THAN PLANNED DR VENTER ALSO HAS SINCE LEFT THE NIH HELPING FORM A NONPROFIT INSTITUTE AND PRIVATE COMPANY USING HIS TECHNIQUE TO SEEK OUT GENES NOTING THAT THE ISSUES SURROUNDING THE PATENTING OF GENETIC MATERIAL IS COMPLEX DR VENTER SAID YESTERDAY THAT HE RESPECTED DR VARMUS'S DECISION BUT OFFICIALS AT SEVERAL PHARMACEUTICAL AND BIOTECH COMPANIES SAID THE NIH DECISION MAY ONLY POSTPONE VEXING QUESTIONS RELATED TO THE PATENTING OF GENES MANY COMPANIES AND RESEARCH INSTITUTIONS HAVE PATENTED GENES OVER THE YEARS BUT THOSE PATENTS WERE BASED ON THE IDENTIFICATION OF A GENE'S COMPLETE STRUCTURE AND FUNCTION NEW TECHNOLOGY NOW ALLOWS INDUSTRY AND ACADEMIC SCIENTISTS TO IDENTIFY PIECES OF GENES LONG BEFORE ANYONE KNOWS WHAT THE GENES DO MANY RESEARCHERS ARE WORRIED THAT IF THEY DON'T PATENT THESE DISCOVERIES SOMEONE ELSE WILL DROPPING THE PATENT CLAIMS DOESN'T RESOLVE THE QUESTION OF WHAT IT TAKES TO WIN A PATENT SAYS FRANCIS COLLINS THE CURRENT DIRECTOR OF THE US GENOME PROJECT BUT BY BACKING OUT OF THE ISSUE DR COLLINS SAID THE NIH MIGHT IMPROVE THE SCIENTIFIC ATMOSPHERE AND RELIEVE SOME OF THE BUILDING PRESSURE TO PATENT GENE FRAGMENTS 9402110022 940211 BUSINESS BRIEF EGGHEAD INC FISCAL 3RDQUARTER NET FELL 39 BUT SALES CLIMBED 11 EGGHEAD INC SAID ITS NEW EMPHASIS ON PRICECUTTING REDUCED MARGINS AND EARNINGS IN THE FISCAL THIRD QUARTER BUT PUSHED UP RETAIL SALES ON A COMPARABLESTORE BASIS BY 18 ITS STOCK PRICE TUMBLED 94 THE ISSAQUAH WASH COMPUTERSOFTWARE CONCERN WHICH HAS UNDERGONE MANAGEMENT UPHEAVAL AND OTHER INTERNAL PROBLEMS REPORTED EARNINGS FOR THE QUARTER ENDED JAN 8 FELL 39 TO 14 MILLION OR EIGHT CENTS A SHARE FROM 23 MILLION OR 14 CENTS A SHARE THE YEAR EARLIER SALES FOR THE QUARTER ROSE 11 TO 2086 MILLION FROM 1883 MILLION A YEAR BEFORE EGGHEAD'S EARNINGS WERE BELOW ANALYSTS' QUARTERLY MEAN ESTIMATES OF 14 CENTS A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT 9625 A SHARE DOWN 1 9402110021 940211 ELECTRONICS FAKE CDS ARE A GROWTH INDUSTRY IN CHINA BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL GUANGZHOU CHINA THE CHINESE GOVERNMENT IS CRACKING DOWN ON THE MANUFACTURE OF BOOTLEGGED CDS AT THE SAME TIME IT'S LOOKING THE OTHER WAY TWO GRAYUNIFORMED ADMINISTRATIVE POLICE SHOWED UP IN THE NARROW LANES OF DONG FANG MARKET LAST WEEK EMPTIED SHELF AFTER SHELF OF COMPACT DISKS INTO CARDBOARD BOXES LOADED THEM INTO A WHITE VAN AND WHISKED THEM AWAY BUT THE RECENT RAID LIKE ONE EARLIER THIS YEAR IN SHENZHEN JUST NORTH OF HONG KONG WON'T MAKE MUCH OF A DENT IN A MUSHROOMING COUNTERFEIT COMPACTDISK TRADE THAT'S BECAUSE MANY OF THE FACTORIES THAT PRODUCE CDS IN CHINA ARE RUN BY LOCAL GOVERNMENTS OR BUSINESSES WITH STRONG NATIONAL POLITICAL TIES THERE'S A BIG GLOBAL MARKET FOR PIRATED CDS IN 1992 PIRATED RECORDINGS ACCOUNTED FOR AN ESTIMATED 21 BILLION OF NEARLY 31 BILLION IN GLOBAL RECORDED MUSIC SALES WORLDWIDE CHINA WILL PROBABLY SOON BE THE BIGGEST SOURCE OF PIRATED CDS IN THE WORLD AND WITH CHINA'S TRADE ROUTES AROUND THE GLOBE THEY COULD SPREAD TO MARKETS FROM AFRICA TO NORTH AMERICA MOST OF CHINA'S COUNTERFEITS ARE CURRENTLY BOUND FOR SOUTHEAST ASIA BUT A SHIPMENT OF CHINESEMADE FAKES WAS JUST INTERCEPTED ON ITS WAY TO ARGENTINA FAKES IN CHINA ARE GENERALLY EASY TO SPOT FROM THE TYPOGRAPHICAL ERRORS ON THEIR PACKAGING A MADONNA CD FOUND IN A MARKET NEAR GUANGZHOU LISTS FEVET AND LIKE A PRAUER INSTEAD OF FEVER AND LIKE A PRAYER THE ILLEGALLY PRODUCED DISKS SELL FOR THE EQUIVALENT OF 2 EACH IN SOUTH CHINA SHOPS BUY THEM FOR LESS THAN HALF THAT THE QUALITY OF THE RECORDINGS IS USUALLY HIGH THE MACHINES THAT PRODUCE CDS RELATIVELY SMALL HIGHTECH MACHINES THAT COULD FIT INTO A HOTEL ROOM ARE SIMPLY TRANSFERRING DIGITAL SIGNALS FROM LEGITIMATE RECORDINGS AND THEN EMBOSSING THEM ONTO FAKE CDS THE PROCESS IS MUCH THE SAME AS A COMPUTER STORING INFORMATION ON A DISK THE RECENT CRACKDOWNS ARE PART OF AN EFFORT BY THE GOVERNMENT TO IMPROVE CHINA'S INTERNATIONAL TRADE STATUS LAST MONTH ZHU RONGJI CHINA'S VICE PREMIER TOLD US TREASURY SECRETARY LLOYD BENTSEN THAT CHINA WOULD ENFORCE INTERNATIONAL COPYRIGHT LAWS AND TRY TO CURB RAMPANT VIOLATIONS OF INTERNATIONAL PROPERTY RIGHTS THE PLEDGE MAY ENHANCE CHINA'S CHANCES OF JOINING THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT ENFORCEMENT WILL BE DIFFICULT LOCAL GOVERNMENTS PROTECT LOCAL ENTERPRISES SAYS CHENG CHING MING A FORMER RECORDING EXECUTIVE FROM SHANGHAI WHO IS NOW THE CHIEF CHINA REPRESENTATIVE FOR THE INTERNATIONAL FEDERATION OF PHONOGRAPHIC INDUSTRIES OR IFPI THE GROUP WHICH INCLUDES MOST OF THE WORLD'S MAJOR RECORD COMPANIES IS SO CONCERNED ABOUT PIRACY IN CHINA THAT IT HAS OPENED OFFICES IN GUANGZHOU SHANGHAI AND BEIJING TO MONITOR THE SITUATION THE FACTORIES CAN'T OPPOSE THE CENTRAL GOVERNMENT OPENLY MR CHENG SAYS BUT IF THEY HAVE CONNECTIONS THEY WILL CONTINUE TO DO BUSINESS AND MANY DO HAVE CONNECTIONS ONE MAKER OF CDS AND LASER DISKS IN SHENZHEN DIPLOMATS SAY IS RUN BY THE SON OF A GENERAL IN THE PEOPLE'S LIBERATION ARMY THE BUSINESSMAN'S WIFE THEY SAY IS THE NIECE OF PRIME MINISTER LI PENG THERE WASN'T ANY REPLY AT THE FACTORY'S SWITCHBOARD LATE LAST WEEK MOREOVER THE STAKES IN THE ILLEGAL DISK BUSINESS ARE HIGH AT LEAST 30 FACTORIES COLLECTIVELY CAPABLE OF PRODUCING UP TO 80 MILLION CDS A YEAR ARE NOW OPERATING IN CHINA WHICH HAS A MARKET FOR ABOUT THREE MILLION CDS SOME OF THE FACTORIES MAKE LEGITIMATE CDS EITHER FOR THE CHINESE RECORDING INDUSTRY OR FOR OTHER ASIAN MARKETS BUT THE EXCESS CAPACITY IS HUGE AND EACH CDMAKING MACHINE COSTS ABOUT 1 MILLION TO BUY THE IFPI SAYS SO THE PRESSURE IS ON TO MAKE DISKS EVEN WHEN CD FACTORIES AGREE TO ABIDE BY INTERNATIONAL LAWS THEY DON'T NECESSARILY DO IT WINGSUNG AUDIOVIDEO PRODUCTIONS CO A CD MAKER HOUSED IN A DUSTY GRAY BUILDING IN A NEWLY URBAN AREA SOUTH OF GUANGZHOU HAS PROMISED THE FEDERATION THAT IT WON'T PIRATE CDS THEY KNOW THE FUTURE IS WITH LEGITIMATE PRODUCTS SAYS JEFF YI A LEGAL ADVISER TO THE INDUSTRY GROUP BUT AT A NEARBY ELECTRONICS MARKET A MAMMOTH MARKETPLACE WHERE THOUSANDS OF BOXES CONTAINING TENS OF MILLIONS OF DOLLARS IN STEREOS AND TELEVISIONS ARE ON SALE CD STORES SELL COUNTERFEIT DISKS THAT DEALERS SAY COME FROM WINGSUNG MANY ASIAN COUNTRIES HAVE HAD A HARD TIME ENFORCING LAWS AGAINST COUNTERFEITS BUT SOME OF THOSE PLACES HONG KONG SINGAPORE SOUTH KOREA AND TAIWAN HAVE BECOME MANUFACTURING CENTERS FOR LEGITIMATELY LICENSED PRODUCTS NEGATING THE ADVANTAGE OF PRODUCING KNOCKOFFS NOW CHINA HAS EMERGED AS ONE OF THE BIGGEST MARKETS FOR FAKE PRODUCTS COPIES OF FOREIGNMADE CLOTHING COMPUTER PARTS AND CDS ARE ALL POPULAR CHINESE COMPANIES EVEN PIRATE DOMESTIC PRODUCTS ZHANG JINFUN DIRECTOR OF QINGDAO THIRD PHARMACEUTICAL CO COMPLAINS THAT COPIES OF HIS COMPANY'S SUCCESSFUL BLOODPRESSURE MEDICINE HAVE TURNED UP EVERYWHERE IN CHINA BUT WITH THE CENTRAL GOVERNMENT'S ENDORSEMENT OF STRONGER INTELLECTUAL PROPERTYRIGHTS PROTECTION COMPANIES WITH LEGITIMATE LICENSES ARE FINDING THEY CAN GET SOME GOVERNMENT HELP THE RAIDS IN GUANGDONG PROVINCE MAY HAVE BEEN TRIGGERED BY THE PHONOGRAPHIC FEDERATION THOUGH THE GROUP'S MR YI SAYS MONITORING CD FACTORIES NOT SHUTTING DOWN STREET VENDORS IS A BETTER SOLUTION THE GLOBAL FEDERATION ALSO IS GETTING HELP FROM CHINA'S LEGAL SYSTEM LAST YEAR CHINA SET UP AN INTELLECTUAL PROPERTY RIGHTS TRIBUNAL IN BEIJING RIGHT NOW ACCORDING TO FEDERATION REGIONAL DIRECTOR JC GIOUW A SHANGHAI COURT IS CONSIDERING CASES AGAINST CD FACTORIES IN NEARBY HANGZHOU AND SUZHOU A RULING IN THE FEDERATION'S FAVOR WOULD TIGHTEN THE NATIONAL POLICING OF OTHER COUNTERFEITERS 9402110020 940211 BUSINESS BRIEF CINCINNATI MILACRON CITES CHARGE FOR LOSS IN FOURTH QUARTER CINCINNATI CINCINNATI MILACRON INC REPORTED A FOURTHQUARTER LOSS AS A RESULT OF A ONETIME CHARGE FOR CLOSING TWO US MACHINE TOOL PLANTS AND CONSOLIDATING MACHINE TOOL OPERATIONS THE COMPANY'S LOSS WAS 473 MILLION OR 140 A SHARE DUE TO THE ONETIME CHARGE OF 471 MILLION THE QUARTERLY LOSS ALSO INCLUDED LOSSES OF 47 MILLON ON THE SALE OF THE COMPANY'S SANO BUSINESS NET PROFIT A YEARAGO WAS 94 MILLION OR 34 CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY TAX CREDIT OF 25 MILLION OR NINE CENTS A SHARE AS PART OF ITS CONSOLIDATION THE COMPANY WILL PHASE OUT TWO MACHINE TOOL FACILITIES IN FOUNTAIN INN SC AND GREENWOOD SC AND TRANSFER THE BULK OF THOSE OPERATIONS TO CINCINNATI THE CONSOLIDATION WILL REDUCE THE MACHINE TOOL GROUP'S WORK FORCE BY 235 PEOPLE OR 12 CINCINNATI MILACRON EXPECTS ANNUAL COST SAVINGS OF ABOUT 16 MILLION FROM THE MOVES SALES FOR THE QUARTER ROSE 25 TO 2727 MILLION FROM 2181 MILLION MAINLY REFLECTING CONTRIBUTIONS FROM THE VALENITE AND FERRMATIK UNITS ACQUIRED IN 1993 CINCINNATI MILACRON MAKES MACHINE TOOLS PLASTICS MACHINERY COMPUTER CONTROLS MEASUREMENT AND INSPECTION EQUIPMENT GRINDING WHEELS AND METALWORKING FLUIDS FOR THE YEAR SALES WERE 103 BILLION UP FROM 789 MILLION REFLECTING RECORD SHIPMENTS OF PLASTICS MACHINERY AND GRINDING WHEELS AS WELL AS SALES OF THE NEWLY ACQUIRED UNITS THE COMPANY SAID OUR INDUSTRIAL PRODUCTS GROUP IS PERFORMING QUITE WELL BUT WE ARE DISAPPOINTED WITH THE OPERATING RESULTS IN OUR CAPITAL GOODS BUSINESSES BOTH MACHINE TOOLS AND PLASTICS MACHINERY THE COMPANY SAID IT HOPES THE CONSOLIDATION WILL CORRECT EXCESS CAPACITY PROBLEMS IN ITS MACHINE TOOLS BUSINESS 9402110019 940211 FORM + FUNCTION BY JOHN PIERSON SIT DOWN BEFORE YOU FALL DOWN TWO PROJECTIONSCREEN MAKERS ARE HEEDING THAT ADVICE THE COMPANIES MAKE SCREENS WITHOUT TRIPODS AND SAY THEIR LEGLESS FLOORSITTERS DON'T WOBBLE AND ARE LESS TRIPPED OVER THAN CONVENTIONAL SCREENS A LEGLESS PROJECTION SCREEN ALSO CAN HIDE ANY CLUTTER BEHIND IT QUARTET MANUFACTURING SKOKIE ILL RECENTLY STARTED US SALES OF ITS DELTASCREEN INVENTED IN GREAT BRITAIN BY COLIN IDE DELTASCREEN COMES AS BIG AS 70BY70 INCHES AND PULLS UP FROM ITS FLOOR BASE TO A MAXIMUM HEIGHT OF EIGHT FEET QUARTET EXECUTIVE VICE PRESIDENT RICHARD GILBERT HOPES TO SELL IT TO COMPANIES IN THE HOTEL AND HOSPITALITY BUSINESS NOT LIKELY COUNTERS RICHARD LUNDIN PRESIDENT AND CHIEF EXECUTIVE OF DALITE SCREEN ANOTHER BIG MAKER OF PRESENTATION PRODUCTS THE DELTASCREEN IS A NEAT PRODUCT MR LUNDIN SAYS BUT TOO SMALL AND COSTLY DALITE MAKES A LEGLESS SCREEN THE FLOOR MODEL C UP TO 12BY12 FEET THE SMALLEST RETAILS FOR 368 ROUGHLY HALF THE PRICE OF THE LARGEST COMPARABLE DELTASCREEN AT 695 BUT AT LEAST TWO DELTASCREEN USERS SEEM TO LIKE IT IT'S NOT AS EASY FOR KIDS TO TIP SAYS SUSIE SOLESBEE MEDIA SPECIALIST AT NORTH HALL MIDDLE SCHOOL GAINESVILLE GA BUT THE 5 1/2 FOOTTALL MS SOLESBEE SAYS SHE FINDS THE SCREEN CUMBERSOME TO SET UP DAVID IKLA DIRECTOR OF SCIENTIFIC COMPUTING AT THE NATIONAL JEWISH HOSPITAL DENVER SAYS HE'S TIRED OF TRIPPING OVER THE LEGS OF TRIPOD SCREENS HE EXPECTS HIS DELTASCREEN WILL ELIMINATE THAT HAZARD ONE COMPANY REMAINING FIRMLY ON THREE LEGS IS APOLLO RONKONKOMA NY PRESIDENT HARRY CHARLSTON CREDITS QUARTET WITH INNOVATION IN A PRETTY BACKWARD INDUSTRY BUT HE SAYS A TRIPOD SCREEN IS STABLE ONCE IT'S UP AND HE'S NEVER HEARD OF ANYONE TRIPPING ON THE LEGS POOR BUT BEAUTIFUL SOME ARCHITECTS ARE DISCOVERING THAT A TIGHT BUDGET CAN BE A BLESSING INSPIRING CREATIVITY AND PRODUCING SOLUTIONS ALMOST AS GOOD OR BETTER THAN MORE EXPENSIVE ONES PERSHING SQUARE LOS ANGELES' OLDEST SQUARE JUST REOPENED RECONSTRUCTION WHICH WAS MANAGED BY MAGUIRE THOMAS PARTNERS AIMED AT RECLAIMING THE FIVEACRE LANDMARK FROM DRUG DEALERS IT NOW INCLUDES A PURPLE CAMPANILE AQUEDUCT WATERFALL A ROUND POOL STABBED BY THE DESIGN OF A FAKE EARTHQUAKE FAULT GARDENCUMAMPHITHEATER STATUE GARDEN YELLOW CAFE RUN BY THE ADJACENT BILTMORE HOTEL AND GROVES OF PALM SWEETGUM AND CAMPHOR TREES LANDSCAPE ARCHITECT LAURIE OLIN AND ARCHITECT RICARDO LEGORRETA HAD HOPED TO PAVE MUCH OF THE SQUARE WITH MEXICAN STONE BUT HAD TO SETTLE FOR ROSECOLORED CONCRETE STAMPED WITH A BASKETWEAVE PATTERN THE CONCRETE ISN'T BETTER THAN THE STONE SAYS MR OLIN BUT IT'S SOME OF THE BEST CONCRETE I'VE SEEN IN AMERICA MR OLIN RECALLS WANTING TO PLANT A ROW OF TREES ON THE ROOF OF A PARKING GARAGE IN MASSACHUSETTS TOLD THE ROOF COULDN'T BEAR THE LOAD WITHOUT EXPENSIVE NEW SUPPORTS MR OLIN PLANTED HIS TREES IN THE BASEMENT AND CUT HOLES IN THE ROOF FOR THE BRANCHES THE UNEXPECTED RESULT DAPPLED LIGHT ON THE LOWER FLOOR AND A SHORTAGE OF FUNDS HAS FORCED LANDSCAPE ARCHITECTS MACHADO & SILVETTI TO SUBSTITUTE BRICKS FOR GRANITE STONES IN THE PAVILIONS AND TERRACE IN SOUTH PARK AT NEW YORK'S BATTERY PARK CITY IT'S A RICHER AND POSSIBLY BETTER AND PROBABLY MORE ROMANTIC DESIGN SAYS MACHADO ASSOCIATE PETER LOFGREN WITH THIS LIFE PRESERVER EVERY PART OF BABY STAYS DRY SOME PLANES CARRY SMALL LIFE VESTS FOR LARGER CHILDREN BUT FEW CARRY DEVICES TO KEEP INFANTS AFLOAT IN CASE OF A WATER LANDING LIFEJACKETED PARENTS MAY TRY TO HOLD BABIES IN THEIR ARMS OR ON SEAT CUSHIONS AN INFANT IS REALLY A GONER SAYS JOHN PETRAKIS AN ENGINEER WITH THE FEDERAL AVIATION ADMINISTRATION SO A MIAMI COMPANY HOOVER INDUSTRIES HAS DESIGNED A LIFE PRESERVER THAT IT SAYS KEEPS BABIES HIGH DRY AND WARM MADE OF DOUBLEWALLED NYLON COATED WITH URETHANE THE CAPSULELIKE PRESERVER HAS AN INTERNAL HARNESS TO HOLD THE BABY A WINDOW WATERPROOF AIR VENTS BALLAST TO KEEP THE CAPSULE UPRIGHT AND A LINE A PARENT CAN HOLD APPROVED BY THE FEDERAL AVIATION ADMINISTRATION THE HOOVER INFANT LIFE PRESERVER INFLATES IN TWO SECONDS THE COMPANY HOPES TO MEET COAST GUARD REQUIREMENTS AS WELL SO THE PRESERVER COULD BE USED ON BOATS JAPAN AIRLINES HAS SHOWN INTEREST IN THE PRODUCT SAYS HOOVER PRESIDENT STEPHEN BASINSKI AND A DOZEN INTERNATIONAL DISTRIBUTORS HAVE PURCHASED SAMPLES A RIVAL RICHARD SWITLIK JR DIRECTOR OF MARKETING FOR SWITLIK PARACHUTE TRENTON NJ CONGRATULATES HOOVER ON A GOOD IDEA THAT SHOULD BE DONE BUT ADDS THAT IF IT ISN'T REQUIRED THE AIRLINES AREN'T GOING TO DO IT 9402110018 940211 TECHNOLOGY NYNEX PLANS TO SPEND 28 BILLION TO BUILD INTERACTIVE NETWORK NEW YORK NYNEX CORP PLANS TO SPEND ABOUT 28 BILLION TO BUILD AN INTERACTIVE NETWORK ACROSS THE NORTHEAST THAT COULD CONNECT UP TO TWO MILLION HOMES AND BUSINESSES BY THE END OF 1996 BUT NYNEX STOPPED SHORT OF ANNOUNCING A ROLLOUT FOR NEW YORK THE MOST LUCRATIVE POTENTIAL US MARKET FOR NEW MULTIMEDIA SERVICES UNTIL IT CAN WIN ASSURANCES OF GETTING GREATER REGULATORY RELIEF INSTEAD EMPLOYING A CARROTANDSTICK APPROACH WITH REGULATORS THE TELEPHONE COMPANY SAID IT WILL START ITS ENTRY INTO THE INTERACTIVE ERA MERELY BY CONSTRUCTING A 60000HOME SYSTEM IN WARWICK RI RHODE ISLAND IS THE ONLY STATE IN NYNEX'S SERVICE REGION THAT OFFERS THE FREE FORM OF REGULATION THE COMPANY SEEKS INCENTIVEBASED RULES THAT FREE THE BABY BELLS TO HOLD ON TO MORE PROFIT IN EXCHANGE FOR FREEZING OR HOLDING DOWN PRICES ON MONOPOLY SERVICES THE OLDER APPROACH OF RATEOFRETURN REGULATION GUARANTEES THE BELLS A CERTAIN LEVEL OF PROFIT BUT IT FORCES REFUNDS WHEN THEY SURPASS THAT CAP WE AREN'T IN THE POSITION TO ANNOUNCE INTERACTIVE PLANS IN NEW YORK UNTIL WE SEE WHAT HAPPENS WITH THE REGULATORY LANDSCAPE RICHARD JALKUT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NYNEX'S NEW YORK UNIT SAID IN AN INTERVIEW IT'S TOO RISKY UNDER THE CURRENT CIRCUMSTANCES NYNEX IS THE LATEST OF THE SEVEN BABY BELLS TO ANNOUNCE ITS INTERACTIVE PLANS PACIFIC TELESIS GROUP U S WEST INC AND BELL ATLANTIC CORP WHICH IS IN THE PROCESS OF ACQUIRING CABLE GIANT TELECOMMUNICATIONS INC HAVE ALL ANNOUNCED AGGRESSIVE PLANS TO CONSTRUCT INTERACTIVE NETWORKS ACROSS THEIR TERRITORIES 9402110017 940211 WORLD MARKETS TOKYO SHARES RISE BUT TURNOVER THINS ON EVE OF HOLIDAY US SUMMIT LONDON PRICES FALL A WALL STREET JOURNAL NEWS ROUNDUP TOKYO PRICES ROSE THURSDAY THOUGH MANY INVESTORS STAYED OUT OF THE MARKET AHEAD OF A THREEDAY HOLIDAY WEEKEND AND THE USJAPAN SUMMIT LONDON STOCKS FELL AMID A GENERAL SENSE OF UNEASINESS THOUGH VOLUME WAS STRONG FRANKFURT SHARES SCORED GAINS DESPITE JITTERS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11580 DOWN 016 REFLECTING LOWER EUROPEAN AND AMERICAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16064 UP 419 OR 27 WITH COLUMBIA HEALTHCARE OF THE US POSTING A 76 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 8423 DOWN 152 OR 18 WITH PHILIP MORRIS OF THE US SLIDING 23 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 40985 POINTS WEDNESDAY GAINED 14932 TO 1999070 NEAR THE DAY'S HIGHS THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN FROM 4534 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED DECLINERS 647370 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1868 POINTS WEDNESDAY ROSE 1012 TO 160814 AMID THE LIGHT TRADING A COUPLE OF LATE BUY ORDERS FROM OVERSEAS SECURITIES HOUSES FOR TOPIX FUTURES CONTRACTS PROPELLED THE NIKKEI INTO ITS ONLY MAJOR MOVE OF THE DAY NUDGING IT BRIEFLY ABOVE 20000 BEFORE IT SAGGED A BIT AT THE END MOST INVESTORS WERE SIDELINED AHEAD OF THE FRIDAY MARKET HOLIDAY AND THE SUMMIT BETWEEN THE US AND JAPANESE LEADERS SLOWING THE FRENZIED ACTIVITY THAT HAS ACCOMPANIED POLITICAL BATTLES IN THE PAST TWO WEEKS ABOUT JAPANESE GOVERNMENT ACTIONS TO STIMULATE THE ECONOMY JAPANESE FINANCIAL MARKETS HAVE BEEN AFFECTED BY UNCERTAINTIES CAUSED PARTLY BY LACK OF PROGRESS IN TRADE TALKS BETWEEN JAPAN AND THE US PRECEDING THE SUMMIT THE US SEEKS TO REDUCE JAPAN'S PERSISTENT TRADE SURPLUS AND TO ALLOW OR IMPROVE ACCESS BY US GOODS TO JAPAN MANY TOKYO INVESTORS WERE WORRIED THAT FAILURE TO REACH A COMPROMISE IN THE TRADE TALKS WITH THE US COULD SEND THE JAPANESE YEN SOARING AGAINST THE DOLLAR WHICH COULD SQUEEZE JAPAN'S EXPORTERS BY LOWERING THE YENDENOMINATED VALUE OF THEIR OVERSEAS EARNINGS AND IN TURN HURT THE STOCK MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 221 POINTS TO 34070 THE FT 30STOCK INDEX FELL 148 POINTS TO 26194 VOLUME WAS 9899 MILLION SHARES COMPARED WITH 912 MILLION SHARES A DAY EARLIER THE FTSE 100 RANGED FROM A HIGH OF 34461 WHICH WAS LOST QUICKLY TO A LOW OF 34003 BEFORE THE INDEX REGAINED SOME OF ITS LOSS INVESTORS GREW INCREASINGLY WARY OF PICKING UP BARGAINS PRESSURED BY A MIXED BAG OF COMPANY NEWS POLITICAL CONCERNS AND MONITORING OF WALL STREET SOME INVESTORS CONSOLIDATED POSITIONS AHEAD OF SEVERAL REPORTS NEXT WEEK ON BRITISH ECONOMIC DATA THAT ARE EXPECTED TO DETERMINE MORE FORCEFULLY THE MARKET'S DIRECTION WHICH IS GENERALLY EXPECTED TO BE UP IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 3367 POINTS OR 16 TO 211896 LED BY THE PERFORMANCE OF GOVERNMENT BOND FUTURES THOUGH 29 OF THE DAX STOCKS ROSE STOCK MARKET SENTIMENT WAS UNCERTAIN AND HESITANT PARTLY BECAUSE OF WARNING STRIKES IN WESTERN GERMANY'S METALWORKING SECTOR WHEN BOND FUTURES ROSE STOCK PRICES FOLLOWED HELPED BY SOME COVERING OF POSITIONS THAT HAD BEEN SOLD SHORT OR BUYING TO REPLACE BORROWED STOCK THAT HAD BEEN SOLD IN HOPES OF A PRICE DECLINE THAT COULD HAVE ALLOWED A PROFIT IN PARIS STOCKS SHED STRONG EARLY GAINS WHEN PROFITTAKERS MOVED IN AND PRICES FINISHED WITH SMALL LOSSES IN AMSTERDAM SHARES ENDED MIXED ON SOME LATE WEAKNESS CAUSED BY A SOFTER US DOLLAR IN CURRENCY DEALINGS AND LOWER STOCK PRICES IN LONDON IN MILAN PRICES ROSE HANDILY AS ENOUGH BUYING EMERGED TO OUTWEIGH TECHNICAL FACTORS INFLUENCING THE MARKET ON THE EVE OF THE FEBRUARY TRADING ACCOUNT'S FINAL DAY IN MADRID EQUITIES SPENT MOST OF THE SESSION AT HIGHER LEVELS BUT FINISHED LOWER AND PARTICIPANTS COULDN'T PINPOINT A REASON FOR THE DROP CITING ONLY THE LACK OF A THEME IN STOCKHOLM SHARES SANK 21 IN CHOPPING TRADING AS CONCERNS ABOUT INTEREST RATES AND CORPORATE EARNINGS REVERSED THE MARKET'S STRONG OPENING LIKEWISE IN ZURICH PRICES OPENED HIGHER BUT REVERSED DIRECTION AT MIDDAY AND FINISHED LOWER WITH FUTURES ACTIVITY INFLUENCING LATE SELLING THE MARKET'S SUSTAINED CORRECTION THIS WEEK STEMMED FROM A US CREDIT TIGHTENING LAST FRIDAY AND BANKS AGAIN WERE THE FOCUS OF SELLING IN MEXICO CITY STOCKS TUMBLED 14 ON CONTINUED PROFITTAKING AFTER THE MARKET HIT RECORD HIGHS ON MONDAY AND TUESDAY THE CORRECTION DIDN'T SURPRISE INVESTORS AS PRICES HAD ADVANCED ALMOST 12 THIS YEAR A GAIN THAT WAS TRIMMED TO 83 IN THE PAST TWO SESSIONS IN SYDNEY SHARES SLUMPED 16 PRICES WEAKENED AT THE OPENING AS INVESTORS WERE NERVOUS ABOUT OVERSEAS MARKETS AND MORE PROFITTAKING EXPECTED AFTER A RECENT BULL RUN BUT THE DROP GATHERED MOMENTUM TAKING SOME PARTICIPANTS BY SURPRISE SOME BLAMED TECHNICAL TRADING FOR THE LOSSES GOLD SHARES FELL DESPITE A RISE IN THE METAL'S PRICE IN MANILA STOCKS GAINED SOLIDLY IN LIGHT DEALINGS INCLUDING FOLLOWUP BUYING FOLLOWING A PEACEFUL RALLY WEDNESDAY IN THE PHILIPPINES TO PROTEST PLANNED OILPRICE INCREASES HOLIDAY OBSERVANCES FOR THE LUNAR NEW YEAR CLOSED MANY ASIAN BOURSES INCLUDING THOSE IN HONG KONG SINGAPORE KUALA LUMPUR TAIPEI AND SEOUL 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 9402110016 940211 ENTERPRISE INVENTOR GROUPS REMAIN UNEASY DESPITE FTC ACCORD ADVOCATES VOW TO KEEP FIGHTING EXPLOITATION OF AMATEURS FIRM SIGNS PACT BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION HAS CONCLUDED ITS LEGAL BATTLE WITH INVENTION SUBMISSION CORP OF PITTSBURGH BUT INVENTOR ADVOCATES SAY THE WAR AGAINST MARKETING COMPANIES THAT ALLEGEDLY PREY ON AMATEUR INVENTORS IS FAR FROM OVER THE FTC ANNOUNCED THIS WEEK THAT IT HAD SIGNED A CONSENT DECREE WITH ISC THAT REQUIRES THE COMPANY TO PAY 12 MILLION INTO A CONSUMERREDRESS FUND AND TO DISCLOSE ITS SUCCESS RATE TO PROSPECTIVE CLIENTS THE SETTLEMENT ALSO PERMANENTLY PROHIBITS ISC FROM MAKING A BROAD RANGE OF MISREPRESENTATIONS PARTICULARLY CONCERNING ITS EXPERIENCE IN PROMOTING INVENTIONS THE FINANCIAL GAINS ITS CLIENTS WILL ACHIEVE ITS ACCESS TO BUSINESS ORGANIZATIONS AND ITS EVALUATION OF THE MARKETABILITY OF CLIENTS' IDEAS COMPANIES SUCH AS ISC SAY THEY TRY TO MARKET INVENTORS' IDEAS TO MANUFACTURERS AND OTHERS THEY OFTEN CHARGE THE INVENTORS THOUSANDS OF DOLLARS IN FEES COMPLAINTS ABOUT THE METHODS OF MANY OF THESE CONCERNS HAVE PROLIFERATED IN RECENT YEARS ISC WAS THE BIG FISH OF THE INDUSTRY SAYS PHOEBE MORSE DIRECTOR OF THE FTC'S BOSTON OFFICE SHE SAYS THE AGREEMENT WHICH ALSO APPLIES TO TWO AFFILIATED CONCERNS THEIR PARENT COMPANY TECHNOSYSTEMS CONSOLIDATED CORP AND MARTIN S BERGER ITS OWNER SHOULD SEND WARNING SIGNALS TO ANYBODY TRYING THE SAME TACTICS MS MORSE DECLINES TO SAY WHETHER THE FTC IS INVESTIGATING OTHER CONCERNS BUT IMPLIES THAT IT IS THE COMMISSION BELIEVES IN A LEVEL PLAYING FIELD SHE SAYS AS IT TAKES ACTION AGAINST OTHER COMPANIES IT WILL WANT TO GET SIMILAR RELIEF INVENTOR GROUPS ARE HAILING THE SETTLEMENT AS A BLOW TO THE BIGGEST AND MOST VISIBLE MARKETING CONCERN ISC IS THE WORST OF THE CROP SAYS CLAYTON WILLIAMSON PRESIDENT OF THE KANSAS ASSOCIATION OF INVENTORS A NONPROFIT GROUP ROBERT LOUGHER FOUNDER OF INVENTORS AWARENESS GROUP INC SAYS ISC TOPS A LIST HE PUBLISHES OF MORE THAN 20 COMPANIES THAT INVENTORS SHOULD APPROACH WITH EXTREME CAUTION AND ROBERTA TOOLE PRESIDENT OF THE UNITED INVENTORS ASSOCIATION OF THE USA ST LOUIS SAYS I MUST HAVE HEARD FROM 500 PEOPLE OVER THE PAST FEW YEARS WHO HAVE LOST MONEY TO ISC BUT INVENTOR ADVOCATES WORRY THAT NO SINGLE LAWENFORCEMENT ACTION CAN PUT A STOP TO ABUSES THAT HAVE PLAGUED THE INVENTION COMMUNITY FOR DECADES AT BEST THEY SAY IT WILL MAKE A DENT IN AN INDUSTRY THAT RAKES IN BETWEEN 100 MILLION AND 200 MILLION A YEAR OFTEN COMPANIES THAT HAVE BEEN TARGETS OF STATE OR FEDERAL PROBES CHANGE THEIR NAMES OR SHUT DOWN AND MOVE TO ANOTHER STATE THESE ADVOCATES SAY CHASING THESE PEOPLE IS LIKE HUNTING GOPHERS THEY DISAPPEAR DOWN A HOLE AND POP UP SOMEWHERE ELSE SAYS GERALD UDELL A MARKETING PROFESSOR AT SOUTHWEST MISSOURI STATE UNIVERSITY IN SPRINGFIELD MO ISC IS STAYING PUT AND PUTTING A POSITIVE SPIN ON THE CONSENT DECREE THIS IS A VERY POSITIVE CONCLUSION SAYS MR BERGER THE OWNER IN A WRITTEN STATEMENT WE BELIEVE THAT IN SIGNING THIS ORDER ISC HAS SET THE HIGHEST POSSIBLE STANDARD FOR OTHER COMPANIES TO FOLLOW THE COMPANY DENIES ANY WRONGDOING INVENTOR ADVOCATES SAY THEY ARE FOCUSING THEIR EFFORTS LESS ON LEGAL CHALLENGES TO INVENTIONPROMOTION COMPANIES AND MORE ON EDUCATING WOULDBE ENTREPRENEURS ABOUT THE PERILS OF PAYING UPFRONT FEES FOR MARKETING SERVICES THAT IS WHAT MR LOUGHER OF INVENTORS AWARENESS GROUP SAYS HE IS DOING A FORMER EMPLOYEE OF AMERICAN INVENTORS CORP IN WESTFIELD MASS HE SAYS HE QUIT IN DISGUST AFTER CONCLUDING THAT THE INVENTIONPROMOTION CONCERN WAS TAKING IN MILLIONS OF DOLLARS FROM UNSUSPECTING INVENTORS BUT RARELY IF EVER GETTING ITS CUSTOMERS' IDEAS TO MARKET HE ESTABLISHED INVENTORS AWARENESS GROUP TO EXPOSE THE OPERATIONS OF AIC AND OTHER MARKETING COMPANIES HE HAS COMPILED A BROCHURE THAT DETAILS WAYS TO VERIFY THEIR CREDIBILITY AND ALSO PUBLISHES AN OCCASIONAL NEWSLETTER IN RESPONSE TO HIS ALLEGATIONS AIC SUED MR LOUGHER AND HIS ORGANIZATION IN HAMPDEN COUNTY MASS SUPERIOR COURT LATE LAST YEAR FOR ALLEGEDLY VIOLATING A NONDISCLOSURE AGREEMENT THAT FORBIDS HIM FROM REVEALING CONFIDENTIAL INFORMATION ABOUT THE COMPANY RON BOULERICE AIC'S OWNER SAYS MR LOUGHER IS A DISGRUNTLED FORMER EMPLOYEE WHO IS GUILTY OF LIBEL AND SLANDER AGAINST THE CONCERN MR BOULERICE ACKNOWLEDGES THAT HIS CUSTOMERS' SUCCESS RATE IS LESS THAN 2 HE WON'T SPECIFY HOW MUCH LESS BUT SAYS AIC MAKES IT CLEAR TO CUSTOMERS HOW DIFFICULT IT IS TO GET A NEW PRODUCT TO MARKET ASKED TO DESCRIBE SOME INVENTIONS THAT HIS COMPANY HAS COMMERCIALIZED HE CITES A STOMACH EXERCISER AND A DEVICE THAT HOLDS A TUBE DURING STOMACH OPERATIONS LEGITIMATE MARKETING COMPANIES DO EXIST BUT THEY GENERALLY RELY ON ROYALTIES RATHER THAN UPFRONT FEES AND TEND TO HAVE HIGH SUCCESS RATES PEOPLE FAMILIAR WITH THE INDUSTRY SAY IN CONTRAST THEY SAY SOME INVENTIONMARKETING COMPANIES HAVE BATTING AVERAGES CLOSE TO ZERO CERTAINLY THAT IS THE CASE WITH WESTERN INVENTION SUBMISSION CORP ONE OF MR BERGER'S ISC COMPANIES UNDER A TOUGH MINNESOTA LAW INVENTIONMARKETING COMPANIES IN THAT STATE MUST DISCLOSE THEIR SUCCESS RATES TO PROSPECTIVE CLIENTS THE LATEST STATEMENT THAT PENNY BECKER EXECUTIVE DIRECTOR OF THE MINNESOTA INVENTORS CONGRESS HAS SEEN FROM WESTERN INVENTION SUBMISSION STATES THAT OF 7651 CUSTOMERS WHO HAD SIGNED CONTRACTS ZERO HAVE RECEIVED MONEY IN EXCESS OF FEES PAID WHO WOULD DO BUSINESS WITH THEM AFTER SEEING THAT MS BECKER WONDERS BUT PEOPLE STILL DO I CAN'T UNDERSTAND IT 9402110015 940211 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAMERON ASHLEY INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 300000 SHARES VIA ROBINSONHUMPHREY CO AND JC BRADFORD & CO OVERHEAD DOOR INC AN INITIAL OFFERING OF ABOUT 77 MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION OF 12 MILLION SHARES VIA MORGAN STANLEY & CO CS FIRST BOSTON AND GOLDMAN SACHS & CO NATIONAL MATERIAL CORP AN INITIAL OFFERING OF 55 MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 825000 ADDITIONAL SHARES VIA GOLDMAN SACHS AND SALOMON BROTHERS INC ZENITH ELECTRONICS CORP A SHELF OFFERING FOR TWO MILLION COMMON SHARES 9402110014 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD SQUEEZE PLAY WITH USABLE FREQUENCIES SCARCE COMPANIES TRY TO EASE THE CRUNCH BY DON CLARK CALL IT THE LAND RUSH OF THE 1990S ONLY A FINITE AMOUNT IS AVAILABLE FROM NATURE AND ANY SIGNS THAT NEW SECTIONS WILL OPEN UP BRING THRONGS OF PEOPLE WAVING CHECKBOOKS WE'RE TALKING ABOUT THE ELECTROMAGNETIC SPECTRUM THE PROBLEM IS A SIMPLE ONE SO MANY WIRELESS VENTURES AND APPLICATIONS ARE BEING PROPOSED THAT SOME PEOPLE FEAR WIDESPREAD SCARCITY OF COMMERCIALLY USABLE FREQUENCIES ALREADY CERTAIN BANDS OF THE SPECTRUM SUCH AS THOSE FOR CELLULARPHONE OPERATION ARE OVERCROWDED IN SOME CITIES BUT SCARCITY CREATES OPPORTUNITY TELECOMMUNICATIONS GIANTS AND SMALL STARTUPS ARE ADOPTING NEW TECHNIQUES TO BETTER EXPLOIT FAMILIAR FREQUENCIES AND THEY ARE EXPLORING PARTS OF THE RADIO SPECTRUM THAT HAVE BEEN UNTAPPED FOR COMMERCIAL PURPOSES THESE EFFORTS MAY NOT COME IN TIME TO HEAD OFF A SHORTTERM CRUNCH BUT THEY ARE LIKELY TO INCREASE THE CAPACITY OF THE ENTIRE SPECTRUM EVENTUALLY MAKING POSSIBLE THE EXPANSION OF WIRELESS VOICE AND DATA COMMUNICATIONS AND CUTTING THE PRICE PEOPLE PAY FOR THEM I BELIEVE WE'RE MOVING FROM A SPECTRUM SHORTAGE TO A SPECTRUM GLUT SAYS IRA BRODSKY PRESIDENT OF DATACOMM RESEARCH CO A WIRELESSRESEARCH CONCERN IN WILMETTE ILL HERE'S A LOOK AT SOME OF THE WAYS THAT COMPANIES ARE LOOKING TO SQUEEZE MORE OUT OF THE ELECTROMAGNETIC SPECTRUM DIVIDE AND CONQUER CONSUMERS ARE ALREADY FAMILIAR WITH ONE TRICK INCREASING CAPACITY BY SPLITTING THE TERRITORY CELLULAR PHONES DIVIDE A GEOGRAPHIC REGION INTO SECTIONS CALLED CELLS CALLERS IN DIFFERENT CELLS CAN SIMULTANEOUSLY USE THE SAME FREQUENCIES WITHOUT INTERFERENCE AS MARKETS GET CROWDED GETTING A CELLULAR DIAL TONE IS ALREADY DIFFICULT AT TIMES IN LOS ANGELES EXISTING CELLULAR CARRIERS ADD ADDITIONAL TRANSMISSION TOWERS TO IMPROVE SIGNAL QUALITY AND INCREASE THE NUMBER OF SIMULTANEOUS USERS THE NEXT STEP IS TO CREATE MICROCELLS WHICH BOOST THE NUMBER OF POTENTIAL USERS BY USING EVEN SMALLER GEOGRAPHIC DIVISIONS AMERICAN TELEPHONE & TELEGRAPH CO FOR EXAMPLE ALREADY OFFERS A WIRELESS SERVICE THAT USES CELLS THAT ARE HUNDREDS OF FEET ACROSS COMPARED WITH A RANGE OF ONE TO 20 MILES FOR TODAY'S CELLULAR SYSTEMS ONE EARLY INSTALLATION IS IN NEW YORK'S PENNSYLVANIA STATION MICROCELLS ARE A KEY FEATURE OF PERSONAL COMMUNICATIONS SERVICES THE NEW WIRELESS TECHNOLOGY THAT IS EXPECTED TO SPAWN MYRIAD POCKETSIZE COMMUNICATORS IN THREE TO FIVE YEARS PCS CELLS WILL BE AS LITTLE AS A FEW HUNDRED FEET ACROSS AND USE FREQUENCIES AROUND 18 GIGAHERTZ A GIGAHERTZ IS A BILLION CYCLES PER SECOND COMPARED WITH CELLULAR'S RANGE OF 800 TO 900 MEGAHERTZ MILLIONS OF CYCLES THE FEDERAL COMMUNICATIONS COMMISSION'S AUCTION FOR PCS FREQUENCIES IS EXPECTED TO RAISE ABOUT 10 BILLION THOUGH SKEPTICS SUGGEST THE ACTUAL AMOUNT WILL BE SMALLER BECAUSE FRANCHISES ARE SO FRAGMENTED THIS MAY BE THE BIGGEST AUCTION IN HISTORY SAYS BOB STEEN DIRECTOR OF WIRELESS SYSTEMS FOR INTERNATIONAL BUSINESS MACHINES CORP MR STEEN ADDS THAT THE RESULTING COMPETITION FOR SENDING DATA VIA PCS CELLS WILL GREATLY REDUCE THE PRICE FOR USERS THE DIGITAL ADVANTAGE BOTH PCS AND NEW CELLULARPHONE SERVICES USE DIGITAL SIGNALS RATHER THAN THE ANALOG FORMAT OF CONVENTIONAL RADIO THAT MAKES SEVERAL SPECTRUMSHARING TRICKS POSSIBLE DIGITAL COMPRESSION SCHEMES FOR EXAMPLE WILL SQUEEZE A CONVERSATION THAT ORDINARILY ACCOUNTS FOR ABOUT 64 KILOBITS PER SECOND OF DATA DOWN TO ABOUT EIGHT KILOBITS PER SECOND NOTES RICHARD GITLIN DIRECTOR OF COMMUNICATIONS SYSTEMS RESEARCH AT AT&T BELL LABORATORIES IN OTHER WORDS IT WILL ALLOW COMPANIES TO CARRY ABOUT EIGHT TIMES MORE CONVERSATION OVER THE SAME FREQUENCY BANDWIDTH DIGITAL CODING TECHNIQUES ALSO CAN FIT DIFFERENT COMMUNICATIONS SIGNALS INTO THE SAME FREQUENCY SPACE ONE PROPOSED DIGITAL STANDARD CALLED TIME DIVISION MULTIPLE ACCESS TDMA CHOPS A RADIO SIGNAL INTO PIECES THAT ARE IDENTIFIED BY TIME SLOTS LASTING A FRACTION OF A SECOND A RECEIVER FILTERS OUT ALL BUT THE SELECTED TIME SLOT AND REASSEMBLES THE MESSAGE SUPPORTERS OF THIS TECHNIQUE INCLUDING MCCAW CELLULAR COMMUNICATIONS INC SAY A SINGLE CELLULAR CHANNEL CAN CARRY THREE TO SEVEN CALLS AT A TIME A NEWER VARIANT CALLED ENHANCED TDMA MAY BRING A 19FOLD ADVANCE OVER ANALOG TECHNOLOGIES BACKERS PREDICT BUT MANY COMPANIES ARE BACKING A RIVAL DIGITAL TECHNOLOGY CDMA WHICH STANDS FOR CODE DIVISION MULTIPLE ACCESS USES LOWPOWERED SIGNALS SPREAD ACROSS A WIDE SWATH OF COMMUNICATIONS FREQUENCIES THIS APPROACH KNOWN AS SPREADSPECTRUM PROGRAMS EACH PHONE WITH AN IDENTIFYING CODE CONTAINED IN A SIGNAL CALLED PSEUDONOISE THE RECEIVING STATION USES THE CODE TO IDENTIFY AND RECONSTITUTE THE ORIGINAL SIGNAL A PHENOMENON COMPARABLE TO THE WAY AN AMERICAN COULD PICK OUT TWO PEOPLE SPEAKING ENGLISH IN A ROOM FULL OF OTHERS SPEAKING JAPANESE CDMA DEVELOPED BY QUALCOMM INC SAN DIEGO IS WIDELY EXPECTED TO INCREASE TRANSMISSON CAPACITY BY A FACTOR OF 10 TO 20 ANDREW VITERBI QUALCOMM'S VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER USES THE MORE CONSERVATIVE NUMBER OF A SEVENFOLD IMPROVEMENT ARRAYS OF ANTENNAS ANOTHER APPROACH BEING TESTED BY SOME COMPANIES USES ARRAYS OF ANTENNAS IN EACH CELL RATHER THAN ONE BY SPACING THEM CAREFULLY AND MEASURING WHEN SIGNALS ARRIVE AT EACH SOCALLED ADAPTIVE ANTENNA ARRAYS CAN DISCRIMINATE BETWEEN SIGNALS BASED ON DISTANCE AND DIRECTION ARRAYS WOULD MAKE IT EASIER TO USE THE SAME FREQUENCY SIMULTANEOUSLY IN ADJACENT CELLS SOMETHING TODAY'S SYSTEMS CAN'T DO WITHOUT CREATING INTERFERENCE THAT'S VERY VERY PROMISING SAYS MR GITLIN OF BELL LABS WE ARE STRONG BELIEVERS THAT THIS TECHNOLOGY WILL ALLOW A HIGH LEVEL OF FREQUENCY REUSE HOPPING AND JUMPING THE OTHER MAJOR STRATEGY IS TO TAP DIFFERENT FREQUENCIES METRICOM INC A STARTUP IN LOS GATOS CALIF IS ATTRACTING ATTENTION WITH PLANS TO SET UP REGIONAL WIRELESS NETWORKS IN AN UNLICENSED BAND OF FREQUENCIES NOW USED BY CONVENTIONAL CORDLESS TELEPHONES TO AVOID INTERFERING WITH THEM METRICOM USES A DIFFERENT SPREADSPECTRUM TECHNIQUE CALLED FREQUENCY HOPPING ROBERT DILWORTH THE COMPANY'S CHIEF EXECUTIVE OFFICER SAYS ITS WIRELESS DATA NETWORK DIVIDES A LARGE CHUNK OF RADIO SPECTRUM INTO 165 NARROW CHANNELS PORTABLE COMMUNICATORS USING ITS SERVICE KEEP HOPPING ABOUT EVERY HALF SECOND AMONG CHANNELS THAT AREN'T BEING USED AVOIDING INTERFERENCE WITH CORDLESS PHONES THAT MIGHT BE OPERATING NEARBY PEOPLE SENDING MESSAGES ON THE METRICOM SYSTEM RARELY INTERFERE WITH ONE ANOTHER BECAUSE THE COMPANY HAS DEVELOPED A PROPRIETARY SYSTEM THAT SYNCHRONIZES THE JUMPS SO THAT USERS DON'T LAND ON THE SAME FREQUENCY AT THE SAME TIME METRICOM'S SERVICE IS BEING TESTED AROUND APPLE COMPUTER INC'S CORPORATE CAMPUS AND AT STANFORD UNIVERSITY IT PLANS TO START HOOKING UP OTHER PARTS OF THE SAN FRANCISCO BAY AREA THIS YEAR USING LOWPOWERED TRANSMITTERS THAT WILL COVER A SQUARE MILE OR SO IN AN URBAN AREA MR DILWORTH SAYS INFREQUENT FREQUENCIES OTHERS DREAM OF REAL VIRGIN TERRITORY FREQUENCIES SO HIGH THERE IS NO COMPETITION MOST COMMERCIAL COMMUNICATIONS OPERATE BELOW ABOUT TWO GIGAHERTZ ONE REASON IS THAT OPERATING AT HIGHER FREQUENCIES REQUIRES CHIPS MADE OUT OF COSTLY GALLIUM ARSENIDE RATHER THAN SILICON AND RADIO WAVES AT HIGHER FREQUENCIES BEGIN TO ACT MORE LIKE BEAMS OF LIGHT SIGNALS MOVE IN STRAIGHT LINES AND BOUNCE OFF OBJECTS REDUCING THEIR ABILITY TO PENETRATE WALLS BUT GALLIUM ARSENIDE IS FALLING IN PRICE WHILE SILICON CHIPS ARE ASSUMING MORE TOUGH COMMUNICATIONS JOBS MR VITERBI OF QUALCOMM PREDICTS THAT SOME PERSONAL COMMUNICATORS WILL EVENTUALLY OPERATE IN THE RANGE OF FIVE TO SIX GIGAHERTZ HE SAYS THAT AT LEAST ONE LARGE PCS PROPONENT IS CONSIDERING THAT BAND THAT WILL HAPPEN IN OUR LIFETIME HE SAYS IN A CELEBRATED BREAKTHROUGH MOTOROLA INC MANAGED TO DEVELOP A WIRELESS LOCALAREA NETWORK SYSTEM CALLED ALTAIR THAT OPERATES AT AN IMPRESSIVE 18 GIGAHERTZ TO PRODUCE THE HIGH FREQUENCIES AT AN ACCEPTABLE SIZE AND COST THE SCHAUMBURG ILL COMPANY DEVELOPED AN EXTREMELY FAST GALLIUM ARSENIDE CHIP TO HANDLE A JOB THAT TYPICALLY REQUIRED A MACHINE THE SIZE OF A REFRIGERATOR A SPECIAL SIXSIDED ANTENNA COMPENSATES FOR THE SCATTERING OF RADIO WAVES OFF WALLS AND FURNITURE AN EVEN HIGHER JUMP WAS MADE BY CELLULAR VISION OF NEW YORK A COMPANY THAT PLANS TO COMPETE WITH CABLE TV COMPANIES BY DELIVERING VIDEO SIGNALS AT A FREQUENCY OF 28 GIGAHERTZ THE UNUSUAL TECHNOLOGY WHICH USES CELLS THAT ARE SIX MILES IN DIAMETER DEPENDS ON SIGNALS THAT BOUNCE OFF BUILDINGS AND SLIP THROUGH THE SPACES BETWEEN THEM CUSTOMERS USE AN ANTENNA THAT IS FIVE INCHES SQUARE AND CAN BE ATTACHED TO A WINDOW SHANT HOVNANIAN CELLULAR VISION'S CHIEF EXECUTIVE OFFICER EXPECTS THE SYSTEM ALSO WILL BE USED FOR TWOWAY INTERACTIVE SERVICES AND FOR HIGHSPEED DATA COMMUNICATIONS BELL ATLANTIC CORP ALREADY IS A PARTNER AND CELLULAR VISION PREDICTS OTHER COMPANIES WILL LICENSE ITS TECHNOLOGY FOR OTHER MARKETS AND APPLICATIONS WE ARE TALKING TO HUNDREDS OF POTENTIAL LICENSEES MR HOVNANIAN SAYS MR CLARK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9402110013 940211 INTERNATIONAL BRIEF BOC GROUP PRETAX DEFICIT IS REPORTED FOR THE FISCAL FIRST QUARTER BRITISH CHEMICALS CONCERN BOC GROUP PLC POSTED A PRETAX LOSS FOR THE FIRST QUARTER ENDED DEC 31 AFTER TAKING A RESTRUCTURING CHARGE OF 85 MILLION 1241 MILLION PROFIT FROM ITS HEALTHCARE DIVISION WAS HIT BY A PATENT EXPIRATION IN THE US THE PRETAX LOSS TOTALED 89 MILLION COMPARED WITH PRETAX EARNINGS OF 908 MILLION A YEAR EARLIER SALES ROSE 86 TO 8435 MILLION FROM 7768 MILLION OPERATING PROFIT FROM HEALTH CARE PLUNGED TO 14 MILLION FROM 326 MILLION AS THE PATENT OF ITS LEADING PRODUCT THE FORANE ANAESTHETIC EXPIRED IN JANUARY OF LAST YEAR IN THE US THE 85 MILLION PROVISION FIRST ANNOUNCED JAN 20 INCLUDES A 25 MILLION CHARGE FOR THE RESTRUCTURING OF THE COMPANY'S GASES BUSINESS WHILE THE REST WILL GO TOWARD THE REVAMPING THE HEALTHCARE OPERATIONS 9402110011 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD HELLO HELLO THE AIRPLANE PHONE IS AN INCREDIBLE CONCEPT AS LONG AS YOU DON'T TRY USING IT BY LAURIE HAYS ABOARD A LEARJET SOARING OVER THE COLORADO ROCKIES JEROME B YORK REACHES FOR WHAT IS SUPPOSED TO BE THE ULTIMATE CONVENIENCE FOR IMPORTANT AND PRESSED EXECUTIVES THE AIRPLANE TELEPHONE QUICKLY HOWEVER MR YORK THE CHIEF FINANCIAL OFFICER OF INTERNATIONAL BUSINESS MACHINES CORP BECOMES FRUSTRATED AS THE PHONE PROVES TO BE ANYTHING BUT A CONVENIENCE HE PUSHES BUTTONS FURIOUSLY IN A VAIN ATTEMPT TO DIAL THE NUMBER HE SLAMS DOWN THE RECEIVER AFTER NUMEROUS ATTEMPTS MR YORK ASKS THE COCKPIT CREW FOR HELP THEY FAIL TOO THEN HE SITS BACK AND GIVES UP IN HIS HANDS HE HOLDS THE LIST OF NINE PHONE CALLS HE IS SUPPOSED TO RETURN THE LIST IS FROM HIS AIDE WHO FORTUNATELY FOR HER CALLED THE OFFICE FROM A PAY TELEPHONE AT THE LAST STOP DAMN PHONE HE MUMBLES IN DISGUST FOR YEARS NOW ONBOARD PHONES HAVE PROMISED SOME OF THE MOST IMPRESSIVE WHIZBANG TECHNOLOGY AND DELIVERED SOME OF THE LAMEST RESULTS AT THE EXORBITANT RATE OF 250 PER MINUTE PLUS INITIAL HOOKUP CHARGES THEY GARBLE WORDS DISCONNECT CALLS OR FAIL TO MAKE CONNECTIONS AT ALL THEN THERE'S THE PRIVACY QUESTION SINCE NOTHING APPROACHING THE DISCREETNESS OF A PHONE BOOTH EXISTS ON COMMERCIAL AIRLINERS EVERYBODY SITTING WITHIN 10 OR 20 FEET GETS TO LISTEN IN AS THE CALLER TRIES TO BE HEARD OVER THE JET'S ENGINES AND THE WHOOSHING THAT SEEMS TO EMANATE FROM EVERYWHERE THE REAL VISION OF THIS IS DIFFERENT FROM WHAT WE'RE ACTUALLY SEEING SAYS BARRY GOODSTADT A WIRELESSTECHNOLOGY CONSULTANT AT ARTHUR D LITTLE INC CAMBRIDGE MASS IT'S NOT CLEAR TO ME HOW MUCH MONEY ANYBODY IS GENERATING OUT OF THIS STUFF NOBODY IS USING THEM MR GOODSTADT IS BEING POLITE GIVEN HIS LITANY OF COMPLAINTS HE DOESN'T WANT TO TALK ON A PLANE OR A TRAIN FOR THAT MATTER WHEN ANOTHER PASSENGER IS SITTING RIGHT NEXT TO HIM HE DOESN'T EVEN LIKE USING HIS LAPTOP COMPUTER AND THE QUALITY IS SO POOR AS TO MAKE USING ONE UNPLEASANT MOREOVER MR GOODSTADT ISN'T SURE IMPROVEMENTS THE INDUSTRY PROMISES WILL BE MUCH BETTER PHONE EXECUTIVES SAY HE SHOULDN'T WORRY THEY PROMISE THE NEXT GENERATION OF AIRPLANE PHONES WILL BE MUCH MUCH BETTER THEY TALK ABOUT VIRTUAL OFFICES IN THE SKY WHERE BUSINESS FLIERS CAN SEND AND RECEIVE FAXES PLUG IN THEIR LAPTOPS AND THEN SELECT AND WATCH VIDEOS THERE MAY EVEN BE A SERVICE BY WHICH SOMEBODY CAN CALL A CENTRAL NUMBER WHICH WILL THEN LOCATE YOU ON THE AIRPLANE AND THE PHONE AT YOUR SEAT WILL RING AND THEY SAY IT EVENTUALLY WILL ALL BE CHEAPER THAN IT IS TODAY THERE ARE UNLIMITED OPPORTUNITIES SAYS JOHN GOEKEN A FOUNDER OF MCI COMMUNICATIONS CORP WHO NOW HEADS INFLIGHT PHONE CORP AN AIRPLANEPHONE MAKER IN OAKBROOK TERRACE ILL NO DOUBT IT IS PRETTY INCREDIBLE TO BE ABLE TO MAKE A PHONE CALL AT ALL WHILE SITTING 32000 FEET OFF THE GROUND AND FLYING THROUGH THE AIR AT HUNDREDS OF MILES AN HOUR EVEN IF THE CONNECTION ISN'T SO GREAT A QUICK CALL TO COLLEAGUES IN THE NEXT CITY TO SAY THE FLIGHT IS DELAYED CAN BE HANDY A BANKER WHO TRAVELS CONSTANTLY AND LIVES NEAR LA GUARDIA AIRPORT IN NEW YORK GETS A KICK OUT OF CALLING HOME TO SAY HONEY I'M FLYING OVER THE HOUSE NOW SEND THE KIDS OUT TO HAVE A LOOK AND DESPITE THE BAD CONNECTIONS SOME PEOPLE DO MANAGE TO DO BUSINESS THIS WAY ONE EXECUTIVE SAYS HE ONCE CONDUCTED AN HOURLONG CONFERENCE CALL FROM HIS PLANE SEAT THOUGH HE DID GET DISCONNECTED SEVERAL TIMES AND THE BILL DID RUN SEVERAL HUNDRED DOLLARS EVEN MR GOODSTADT OF ARTHUR D LITTLE CONCEDES THE PHONES COME IN HANDY HE RECALLS THAT HE HAS USED AN AIRPLANE PHONE TWICE IN HIS EXTENSIVE TRAVELS ONCE HE WAS CAUGHT IN A SNOWSTORM ON THE RUNWAY AND WANTED TO LET HIS CHILDREN KNOW WHAT HAD HAPPENED TO HIM ANOTHER TIME HE WAS LATE FOR A MEETING STILL AIRPLANE TELEPHONES AS WE NOW KNOW THEM ARE BASED ON AN ANTIQUATED ANALOG SYSTEM GTE AIRFONE A SUBSIDIARY OF GTE CORP STAMFORD CONN MAKES MOST OF THEM A FEW SMALL COMPANIES CATER TO PRIVATE JETS LIKE IBM'S LEAR GTE BROUGHT THE TECHNOLOGY TO MARKET IN 1984 AND WAS GIVEN THE EXCLUSIVE LICENSE BY THE FEDERAL COMMUNICATIONS COMMISSION TO INSTALL THE PHONES ON PLANES OF UNITED CONTINENTAL AND AMERICA WEST AIRLINES AND THE NEW YORKWASHINGTON SHUTTLE NOW OWNED BY USAIR GROUP BUT BECAUSE THE ANALOG GROUND STATIONS USED BY MOST AIRPLANE PHONES WERE INSTALLED OVER A DECADE AGO THEY WERE SOON OUTDATED IN TERMS OF THEIR CAPABILITIES CALLS ARE EASILY DISCONNECTED AS THE PLANE MOVES AWAY FROM THE GROUND STATION THAT ORIGINALLY LINKED UP THE CALL BECAUSE THERE'S NO WAY TO SWITCH THEM YOU HAVE TO KEEP YOUR CALL PRETTY SHORT OR SIMPLY REDIAL WHEN THE PLANE MOVES FROM THE RANGE OF ONE GROUND STATION TO THE NEXT IN ADDITION ANALOG CALLS ARE FULL OF INTERFERENCE FROM AIR WHOOSHING IN THE BACKGROUND BECAUSE THE SYSTEM HAS NO WAY TO SORT THE NOISE OUT BUT THE AIRPLANE PHONE IS NOW GETTING AN OVERHAUL AS THE BUSINESS EMBARKS ON A DIGITAL MAKEOVER GTE IS CONVERTING ALMOST ALL OF ITS SYSTEMS TO DIGITAL IN ADDITION ITS NEW COMPETITORS SUCH AS INFLIGHT PHONE AND MCCAW CELLULAR COMMUNICATIONS INC'S CLAIRCOM UNIT WERE GRANTED ACCESS TO THE SKIES IN 1991 BY THE FCC AND ARE SKIPPING THE ANALOG PHASE ENTIRELY GOING RIGHT TO DIGITAL DIGITAL PHONE SYSTEMS WILL TRANSLATE SOUND INTO ELECTRONIC PULSES THAT REGISTER IN GROUNDSTATION COMPUTER SYSTEMS AS ZEROS AND ONES A CALL HANDOFF WILL PASS THE PULSES FROM ONE GROUND STATION TO ANOTHER AS IN A CELLULAR NETWORK THAT TRANSFERS CALLS TO DIFFERENT CELLS AS THE CAR IS DRIVING ALONG A DOPPLER EFFECT DETECTS WHEN THE SIGNAL IS WEAKENING THE SYSTEM THEN BEGINS PHONING THE NEXT GROUND STATION TO TRANSFER THE CALL WHEN THE PLANE GETS CLOSE ENOUGH AND MOST IMPORTANT BEFORE THE CALL IS DISCONNECTED THE TECHNOLOGY IS SO SOPHISTICATED THAT IT CAN SWITCH CALLS BACK AND FORTH BETWEEN GROUND STATIONS WHEN NECESSARY SO AS A FLIER APPROACHES MT RAINIER IT WILL SWITCH THE CALL FROM ITS ORIGINAL BASE TO A BETTERLOCATED ONE WHILE THE PLANE IS PASSING THE MOUNTAIN THEN SWITCH BACK TO THE FIRST GROUND STATION THE ONLY SOUND THE CALLER SHOULD HEAR IS A CLICKING AS THE SWITCHOFF OCCURS IF THAT IS THE SYSTEM WORKS A SECOND BIG ADVANTAGE OF THE DIGITAL TECHNOLOGY IS ITS ABILITY TO SCREEN OUT BACKGROUND NOISE THE GROUNDSTATION COMPUTERS ARE PROGRAMMED TO RECOGNIZE VOICES AS OPPOSED TO THINGS LIKE STATIC AND WHOOSHING THEY SCREEN OUT THOSE UNWANTED SOUNDS SIMILARLY THE GROUND COMPUTERS ARE PROGRAMMED TO RECOGNIZE WORD PATTERNS IF THERE'S A BLIP THEY FILL IN THE PROPER SOUNDS WITH A SYNTHESIZED VOICE THUS MAKING BROKENUP CONVERSATIONS WHOLE AGAIN THIS BRINGS UP TWO OF MR GOODSTADT'S CONCERNS ABOUT DIGITAL HE SAYS THAT THE SYNTHETIC VOICE GIVES CALLS A METALLIC QUALITY AND THAT THE TECHNOLOGY CAUSES THE KIND OF VOICE DELAY THAT MAKES MANY USERS UNCOMFORTABLE IT ALL HAS A LOT OF PROMISE WILL IT EVER BE PERFECT MYRA HOGAN AN INFLIGHT TESTER FOR GTE'S NEW GENSTAR DIGITAL SYSTEM FLIES THOUSANDS OF MILES WORKING OUT THE KINKS CALLING ONE DAY FROM THE DELTA SHUTTLE TO BOSTON SHE SOUNDS A LITTLE UNDERWATER BUT SAYS SHE ISN'T YELLING AND THE WHOLE AIRCRAFT ISN'T STARING AT HER IN FACT THINGS ARE GOING PRETTY WELL UNTIL FIVE MINUTES INTO THE CONVERSATION WHEN THERE'S SOME CLICKING AND MS HOGAN'S CALL IS DISCONNECTED AFTER CALLING BACK A FEW MINUTES LATER SHE ATTRIBUTES THE PROBLEM TO A HANDOFF HITCH AS SHE MOVED FROM THE LA GUARDIA TO THE STATEN ISLAND GROUND STATION I'M REALLY SURPRISED SHE SAYS THAT'S NEVER HAPPENED BEFORE MS HAYS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110010 940211 MEXPETROL SEEKS CUBAN REFINERY MEXICO CITY MEXPETROL SA A CONSORTIUM OF PUBLIC AND PRIVATE MEXICAN COMPANIES IS NEGOTIATING THE PURCHASE OF CUBA'S CIENFUEGOS REFINERY ACCORDING TO PEOPLE CLOSE TO THE TALKS MEXPETROL IS 25OWNED BY STATE OIL MONOPOLY PETROLEOS MEXICANOS CUBA'S CIENFUEGOS REFINERY HAS A CAPACITY TO REFINE ABOUT 60000 BARRELS A DAY OF CRUDE HOWEVER HALF THE REFINERY NEVER WAS BUILT THE REFINERY IS SAID TO BE RUNNING AT ABOUT 25000 BARRELS A DAY 9402110009 940211 INTERNATIONAL BRIEF BRITISH TELECOMMUNICATIONS PLC COMPANY POSTS SLIGHT DROP IN PROFIT FOR THIRD QUARTER BRITISH TELECOMMUNICATIONS PLC SAID PRETAX PROFIT FOR THE THIRD QUARTER ENDED DEC 31 DECLINED 01 TO 698 MILLION 102 BILLION FROM 705 MILLION A YEAR EARLIER THE FIGURES EXCLUDE 142 MILLION OF REDUNDANCY CHARGES IN THE LATEST QUARTER COMPARED WITH 17 MILLION A YEAR EARLIER BT SAID IT EXPECTS FURTHER SIGNIFICANT REDUNDANCY COSTS IN THE FOURTH QUARTER THIS WEEK BT CUT TELEPHONE CHARGES BY ELIMINATING HIGHER RATES FOR PEAK PERIODS SIR IAN VALLANCE CHAIRMAN SAID YESTERDAY THERE WOULD BE MORE PRICE CUTS ON THE WAY DUE TO COMPETITION AND THAT COSTS WOULD HAVE TO BE FURTHER CONTROLLED 9402110008 940211 POLITICS & POLICY ROSTENKOWSKI REIMBURSED GOVERNMENT 82000 FOR PURCHASES OF HOUSE SUPPLIES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP DAN ROSTENKOWSKI REIMBURSED THE GOVERNMENT 82000 FOR POSSIBLY IMPROPER PURCHASES OVER A SIXYEAR PERIOD FROM THE HOUSE OFFICE SUPPLY SERVICE MR ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE SAID HIS PAYMENT LAST WEEK COVERS SOME ITEMS THAT WERE USED FOR CONGRESSIONAL FUNCTIONS BUT WHOSE PURPOSE COULDN'T BE DOCUMENTED SEPARATELY A FORMER AIDE TO THE CHICAGO DEMOCRAT HAS BEEN CITED FOR CONTEMPT FOR REFUSING TO TESTIFY BEFORE A GRAND JURY INVESTIGATING ALLEGATIONS OF FINANCIAL IRREGULARITIES BY THE CONGRESSMAN THE FORMER AIDE CELESTE GABINSKI WAS GIVEN 10 DAYS TO APPEAL THE CONTEMPT CITATION GIVEN TO HER THIS WEEK BY FEDERAL DISTRICT CHIEF JUDGE JOHN GARRETT PENN IN WASHINGTON ACCORDING TO PEOPLE FAMILIAR WITH THE CASE CONCERNING THE SUPPLY SERVICE MR ROSTENKOWSKI SAID WHILE THIS MEANS THAT I AM PAYING FOR PURCHASES WHICH WERE IN MANY CASES PART OF MY OFFICIAL ACTIVITIES I AM WILLING TO DO SO SINCE MY INTEGRITY IS A LOT MORE IMPORTANT THAN THE MONEY THE SUPPLY SERVICE SELLS GOODS FOR CONGRESSIONAL USE AT DISCOUNTED PRICES PROSECUTORS HAVE SUBPOENAED INFORMATION FROM THE SUPPLY SERVICE REGARDING THE REIMBURSEMENT ROBERT BENNETT MR ROSTENKOWSKI'S LAWYER SAID THIS IS EVIDENCE THAT HE WANTS TO DO THE RIGHT THING AND THAT DOLLARS AND CENTS IS NOT AN ISSUE TO HIM HE ERRED ON THE SIDE OF GIVING MONEY BACK RATHER THAN TRYING TO ARGUE THE POINT FEDERAL PROSECUTORS HAVE BEEN CONDUCTING A LENGTHY INVESTIGATION INTO SEVERAL ALLEGATIONS INCLUDING CHARGES THAT MR ROSTENKOWSKI IMPROPERLY RECEIVED THOUSANDS OF DOLLARS FROM THE HOUSE POST OFFICE BY CONVERTING STAMPS TO CASH AND THAT HE FRAUDULENTLY HAD GHOST EMPLOYEES PEOPLE ON HIS CONGRESSIONAL OFFICE PAYROLL WHO DIDN'T WORK MR ROSTENKOWSKI WHO HAS DENIED ANY WRONGDOING FACES A TOUGH PRIMARY ELECTION VOTE NEXT MONTH HE IS A KEY PLAYER IN PRESIDENT CLINTON'S EFFORTS TO RESTRUCTURE THE NATION'S HEALTHCARE SYSTEM IF INDICTED HE WOULD LOSE HIS CHAIRMANSHIP UNTIL CLEARED OF THE CHARGES MRS GABINSKI WHO REPORTEDLY REMAINED ON THE DEMOCRAT'S CHICAGO PAYROLL AFTER SHE HAD STOPPED WORKING FOR HIM WAS GIVEN IMMUNITY FROM PROSECUTION IN EXCHANGE FOR HER TESTIMONY SHE TESTIFIED ONCE BUT WHEN CALLED TO TESTIFY AGAIN SHE REFUSED LAWYERS WORKING WITH MRS GABINSKI'S ATTORNEY SAID SOME FACTS IN THIS ARTICLE WERE INACCURATE BUT WOULDN'T SAY WHAT THEY WERE A SPOKESMAN FOR THE US ATTORNEY'S OFFICE SAID HE HAD NO COMMENT THROUGH HER LAWYER MRS GABINSKI ARGUED THAT SHE SHOULD BE GRANTED IMMUNITY FROM PROSECUTION FOR PERJURY BEFORE TESTIFYING AGAIN A JUDGE MAY ORDER SOMEONE WITH IMMUNITY WHO NONETHELESS REFUSES TO TESTIFY TO REMAIN IN JAIL UNTIL HE OR SHE TESTIFIES IN DECEMBER THE CHICAGO SUNTIMES REPORTED THAT MRS GABINSKI REMAINED ON THE ROSTENKOWSKI PAYROLL FOR FIVE YEARS RECEIVING 79000 AFTER OSTENSIBLY QUITTING HER JOB THE WIFE OF A ROSTENKOWSKI PROTEGE CHICAGO ALDERMAN TERRY GABINSKI MRS GABINSKI WORKED IN THE ROSTENKOWSKI OFFICE FROM 1981 TO 1987 BUT REPORTEDLY WAS ON THE PAYROLL UNTIL MAY 1992 WHEN IT WAS REPORTED THAT A GRAND JURY WAS INVESTIGATING THE CONGRESSMAN'S FINANCES A ROSTENKOWSKI EMPLOYEE SAID MRS GABINSKI DID WORK AT HOME MR GABINSKI SUCCEEDED MR ROSTENKOWSKI AS CHICAGO'S 32ND WARD DEMOCRATIC COMMITTEEMAN A GRAND JURY HAS SUBPOENAED THE WARD'S FINANCIAL RECORDS ACCORDING TO THE CHICAGO TRIBUNE MR ROSTENKOWSKI HAS USED MORE THAN 56000 FROM HIS HUGE CAMPAIGN WAR CHEST TO PAY LEGAL EXPENSES FOR MRS AND MR GABINSKI JAMES COLE THE GABINSKIS' LAWYER SAID HE HAD NO COMMENT ON MATTERS INVOLVING THEM MR ROSTENKOWSKI ONCE HAD A CHICAGO OFFICE IN THE SAME BUILDING WHERE MR GABINSKI'S AND THE WARD ORGANIZATION'S OFFICES ARE LOCATED A BUILDING THE SUNTIMES SAID WAS OWNED BY THE CONGRESSMAN'S FAMILY 9402110007 940211 FOR SALE VERSAILLES LOOKALIKE CONDITION IN THE PINK HAS GARAGE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS STILL LOOKING FOR THE ULTIMATE VALENTINE'S DAY GIFT TRY A 19000SQUAREFOOT PINK MANSION WITH A WATER GARDEN AND A FLEET OF PINK CADILLACS MARY KAY ASH FOUNDER OF THE COSMETICS COMPANY THAT BEARS HER NAME SAID YESTERDAY SHE IS PUTTING HER THREESTORY DALLAS HOME ON THE AUCTION BLOCK THE HOUSE PATTERNED AFTER THE PALACE IN VERSAILLES INCLUDES THREE FRONTYARD FOUNTAINS PINK CHANDELIERS FROM VENICE AND A SEA OF OTHER PINK FURNISHINGS FROM PINK TOILET SEATS AND PINK SINKS TO PINK MARBLE FLOORS IT LOOKS JUST LIKE CAESARS PALACE SAYS WILLIAM BONE AN EXECUTIVE AT THE NATIONAL AUCTION GROUP IN HOUSTON IT'S VERY TASTEFULLY DONE MR BONE WILL CONDUCT THE AUCTION WHICH WILL BE OPEN TO THE PUBLIC IN APRIL AT 25 A PERSON IT WILL INCLUDE INTERIOR FURNISHINGS AND MOST LIKELY SOME OF MS ASH'S TRADEMARK PINK CADILLACS THE MILLIONAIRE'S FIRST PINK CADDIE A 1968 MODEL SITS ON THE PROPERTY BUT WON'T BE INCLUDED MS ASH WHO WILL ATTEND AND OVERSEE THE AUCTION MOVED OUT OF THE HOUSE YEARS AGO AND HAS RECENTLY USED THE MANSION AS A RETREAT FOR CUSTOMERS AND EMPLOYEES DESPITE ITS LOCATION IN DALLAS'S TONY PRESTON HOLLOW NEIGHBORHOOD AMERICAN AIRLINES CHIEF ROBERT CRANDALL LIVES IN THE AREA AND ROSS PEROT IS JUST AROUND THE CORNER THE ASH ESTATE ON THE MARKET FOR TWO YEARS HAS HARDLY BEEN A HOT PROPERTY INDEED A SLOWTORECOVER DALLAS REAL ESTATE MARKET AND LINGERING WOUNDS FROM TEXAS' 1980S BUYING BINGE HAVE MADE HIGHPROFILE HOME AUCTIONS SOMEWHAT TRENDY AMONG THIS CITY'S JET SET JUST AS FILING FOR PERSONAL BANKRUPTCY TOOK ON A BIZARRE CACHET DURING THE BUST NORMAN BRINKER A RESTAURATEUR SOLD HIS 11 MILLION DALLAS MANSION AT AUCTION LAST YEAR AND A FEW WEEKS LATER BOUGHT A NEW PRESTON HOLLOW HOME ALSO AT AUCTION AT DOUBLE THE PRICE OF THE FIRST AND YESTERDAY MR BONE'S COMPANY AUCTIONED OFF A 1700ACRE RANCH ONCE OWNED BY CONNIE C CHIP ARMSTRONG JR A ONETIME TEXAS HIGHFLIER WHOSE TAXPROCESSING COMPANY FILED FOR BANKRUPTCY PROTECTION IN 1991 MR BONE PREDICTS MS ASH'S MANSION COULD FETCH 3 MILLION BUT IT'S NOT AS THOUGH SHE NEEDS THE MONEY TEXAS MONTHLY MAGAZINE PEGS THE NET WORTH OF MS ASH AND HER SON RICHARD RAYMOND ROGERS THE COMPANY'S CHAIRMAN AT 320 MILLION 9402110006 940211 BUSINESS BRIEF FLEMING COS LOSS FOR THE FOURTH QUARTER WAS WORSE THAN PROJECTED FLEMING COS TAKING A HEAVY HIT FOR RESTRUCTURING AND CONSOLIDATION COSTS POSTED A SLIGHTLY WORSE THAN PROJECTED LOSS FOR ITS FOURTH QUARTER ENDED DEC 25 THE OKLAHOMA CITY FOOD DISTRIBUTION CONCERN REPORTED A NET LOSS FOR THE QUARTER OF 493 MILLION OR 134 A SHARE COMPARED WITH NET INCOME OF 25 MILLION OR 68 CENTS A SHARE A YEAR EARLIER THE MORE RECENT QUARTER INCLUDED A 1013 MILLION PRETAX CHARGE FOR CONSOLIDATION AND RESTRUCTURING AND A 23 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT SALES FOR THE QUARTER ROSE 16 TO 315 BILLION FROM 310 BILLION A YEAR AGO FOR THE YEAR FLEMING REPORTED A 69 DROP IN NET INCOME TO 352 MILLION OR 96 CENTS A SHARE FROM 113 MILLION OR 316 A SHARE IN 1992 SALES FOR THE YEAR GREW 15 TO 1309 BILLION FROM 1289 BILLION THE PREVIOUS YEAR ROBERT E STAUTH PRESIDENT AND CHIEF EXECUTIVE BLAMED THE SMALL SALES GAINS ON INTENSE COMPETITION AND LACK OF FOODPRICE INFLATION HE SAID THE COMPANY PLANS TO CONTINUE CONSOLIDATING INTO LARGER DISTRIBUTION CENTERS AND TO ELIMINATE FUNCTIONS AND OPERATIONS THAT DO NOT ADD VALUE 9402110005 940211 MARKETING & MEDIA NEW YORK TIMES 4THQUARTER LOSS WAS 241 MILLION BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW YORK TIMES CO REPORTED A FOURTHQUARTER NET LOSS DUE TO A NUMBER OF ONETIME CHARGES BUT TURNED IN OPERATING PROFIT THAT TOPPED MOST ANALYSTS' ESTIMATES THE PUBLISHING COMPANY HAD A LOSS OF 241 MILLION OR 23 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH A NET LOSS OF 37 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ROSE 36 TO 636 MILLION FROM 4682 MILLION BOOSTED PARTLY BY THE OCTOBER 1993 ACQUISITION OF THE BOSTON GLOBE NEW YORK TIMES CO HAD ALREADY FOREWARNED ANALYSTS ABOUT THE FOURTH QUARTER'S PRETAX CHARGE OF 30 MILLION TO COVER SEVERANCE PAY AND RELATED COSTS FOR A PLANNED WHITECOLLAR STAFF CUTBACK THERE WERE SEVERAL OTHER MINOR CHARGES IN THE QUARTER PLUS AN UNEXPECTED 47 MILLION AFTERTAX CHARGE EFFECTIVELY A WRITEDOWN OF ASSETS IN THE COMPANY'S FOREST PRODUCTS GROUP THE COMPANY OWNS 50 OF THREE PAPER MILLS AND SAID IT IS REVALUING THE MILLS BASED ON CURRENT MARKET CONDITIONS INCLUDING A WORLDWIDE NEWSPRINT GLUT LOOKING PAST THE SHORTTERM CHARGES ANALYSTS SAW EVIDENCE OF A SOLID TURNAROUND IN ADVERTISING SALES WE BELIEVE THE WORST IS CERTAINLY OVER FOR THE NEW YORK TIMES NEWSPAPER COMPANY SAID KENNETH BERENTS MEDIA ANALYST WITH WHEAT FIRST BUTCHER & SINGER IN RICHMOND VA LANNY BAKER MEDIA ANALYST WITH SALOMON BROS CITED AN INCREASE OF ALMOST 8 IN ADVERTISING LINAGE AT THE TIMES FOR THE FOURTH QUARTER WHEREAS AD LINAGE FOR THE FULL YEAR ROSE ONLY 1 AT THE BOSTON GLOBE AD LINAGE ROSE NEARLY 10 IN THE QUARTER OPERATING PROFIT AT THE NEWSPAPER DIVISION WAS UP 50 EVEN AFTER THE AMORTIZATION AND DEPRECIATION FROM THE GLOBE ACQUISITION SAID MR BAKER WHICH SHOWS THAT CASH FLOWS ARE PRETTY DARN STRONG ALSO OPERATING PROFIT DOUBLED IN THE COMPANY'S MAGAZINE GROUP FOR THE QUARTER TO 49 MILLION FROM 24 MILLION AND OPERATING PROFIT ALSO ROSE IN THE BROADCAST/INFORMATION SERVICES GROUP TO 58 MILLION FROM 41 MILLION FOR THE FULL YEAR NEW YORK TIMES CO REPORTED NET INCOME OF 61 MILLION OR SEVEN CENTS A SHARE COMPARED WITH A NET LOSS OF 447 MILLION OR 57 CENTS A SHARE THE YEARAGO FIGURES INCLUDE A PRETAX LOSS OF 538 MILLION OR 47 CENTS A SHARE DUE TO THE CLOSING OF THE GWINNETT GA DAILY NEWS REVENUE FOR 1993 ROSE TO 202 BILLION FROM 177 BILLION 9402110004 940211 DIVIDEND NEWS DURIRON CO DURIRON CO DAYTON OHIO RAISED ITS QUARTERLY DIVIDEND TO 15 3/4 CENTS FROM 15 CENTS PAYABLE MARCH 11 TO SHAREHOLDERS OF RECORD FEB 25 THE MAKER OF PUMPS AND VALVES ALSO ANNOUNCED A 3FOR2 STOCK SPLIT PAYABLE MARCH 25 TO HOLDERS OF RECORD FEB 25 ON A POSTSPLIT BASIS THE CASH DIVIDEND WAS INCREASED TO 105 CENTS A SHARE FROM 10 CENTS A SHARE DURIRON CURRENTLY HAS 126 MILLION SHARES OUTSTANDING 9402110003 940211 TELECOMMUNICATIONS A SPECIAL REPORT A WIRELESS WORLD WATCH YOUR MANNERS THE ABILITY TO MAKE AND RECEIVE CALLS ANYWHERE IS STRAINING THE NORMS OF POLITE BEHAVIOR BY GAUTAM NAIK IN A RECENT MARKET TEST FOR NEW WIRELESS POCKET PHONES PACIFIC TELESIS GROUP ENGINEERS STUMBLED UPON SOMETHING UNEXPECTED BAD MANNERS THE PHONE COMPANY BASED IN SAN FRANCISCO HAD ASKED EMPLOYEES OF VARIAN CHROMATOGRAPHY SYSTEMS A MAKER OF CHEMICALANALYSIS INSTRUMENTS IN SAN FRANCISCO TO SEE WHETHER THE PHONES INCREASED EMPLOYEE EFFICIENCY VARIAN FOUND THAT THEY DID EXCEPT IN MEETINGS PEOPLE GREW SO ATTACHED AND DEPENDENT ON THEIR HANDSETS THAT THEY WOULD TAKE THEM INTO MEETINGS AND ANSWER THEM RECALLS PAT IRELAND A VARIAN MANAGER THE PRACTICE SHE SAYS WAS VERY DISTRACTING AND THE COMPANY EVENTUALLY PROHIBITED EMPLOYEES FROM CARRYING THE PHONES INTO MEETINGS THE CELLULAR PHONE IS NO LONGER A TOY FOR THE RICH AND OSTENTATIOUS AS MILLIONS OF CONSUMERS NOW CARRY THEM FOR BOTH BUSINESS AND PERSONAL USE BUT THE ABILITY TO MAKE AND RECEIVE PHONE CALLS JUST ABOUT ANYWHERE IS STRAINING THE NORMS OF POLITE BEHAVIOR PEOPLE THINK THAT JUST BECAUSE THEY HAVE A NEW TECHNOLOGY THERE DON'T HAVE TO BE ANY RULES SAYS JUDITH MARTIN AKA MISS MANNERS THE SELFSTYLED GUARDIAN OF GOOD BEHAVIOR BUT ETIQUETTE HAS TO KEEP UP WITH TECHNOLOGY SO CELLULARPHONE USERS WILL HAVE TO ADAPT TO PROD THE PROCESS ALONG SHE HAS WRITTEN A BOOKLET MISS MANNERS' GUIDE TO THE PERFECTLY PROPER USE OF CELLULAR TELEPHONES CLEARLY GUIDANCE CAN'T COME QUICKLY ENOUGH ALREADY THE WORLD IS SPLITTING INTO USERS AND NONUSERS WITH A HOSTILITY THAT THREATENS SOON TO RIVAL THAT BETWEEN SMOKERS AND NONSMOKERS ASK NONUSERS ABOUT CELLULAR PHONES AND THEY INSTANTLY REEL OFF A LIST OF OFFENSES THEY TALK OF CELLULARPHONE USERS BLITHELY MAKING CALLS DURING CONCERTS AT MOVIES OR WHILE WAITING FOR A PARTNER TO COMPLETE A PUTT DURING A ROUND OF GOLF THEY SNEER AT THOSE WHO THINK NOTHING OF WHIPPING OUT A POCKET PHONE IN THE MIDDLE OF A SOCIAL EVENT INCLUDING DINNER TO CONCLUDE SOME UNFINISHED BUSINESS AND THEY DISGUSTEDLY TELL OF MEETINGS THAT ARE INTERRUPTED BY THE SOUND OF A RINGING PHONE CAUSING EXECUTIVES TO SIMULTANEOUSLY GRAB THEIR JACKET POCKETS TO SEE IF SOMEONE'S TRYING TO REACH THEM BECAUSE THEY ARE SUCH HEAVY USERS BUSINESS EXECUTIVES CAN BE SOME OF THE WORST OFFENDERS WHEN IT COMES TO PROPER CELLULAR ETIQUETTE MANY EXECUTIVES WHO HAVE MASTERED THE WALKINGTALKING COMBINATION APPEAR TO SUCCUMB TO A MODERN COROLLARY OF PARKINSON'S LAW WORK EXPANDS TO FILL THE COMMUNICATIONS AVAILABLE FOR IT CONSIDER ROBERT CONHEIM SENIOR COUNSEL FOR THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD A STATE AGENCY IN SACRAMENTO CALIF MR CONHEIM WHO DESCRIBES HIMSELF AS AN INSUFFERABLE TECHNOFREAK HAS A BUSINESS CARD WITH FIVE NUMBERS INCLUDING THAT OF HIS PAGER FAX AND CAR PHONE SOME MONTHS AGO HE RECALLS HE RECEIVED A BUSINESS CALL ON HIS CELLULAR PHONE IN THE MIDDLE OF A FEDERAL SEMINAR ON WASTE MANAGEMENT AND DISTURBED VIRTUALLY EVERYONE OTHER TIMES HE SAYS HIS WIFE COMPLAINS THAT INSTEAD OF TALKING TO HER OR THEIR CHILDREN HE TALKS BUSINESS ON THE CAR PHONE SHE SAYS I'M DRIVING HER CRAZY MR CONHEIM SAYS MR CONHEIM BELIEVES THAT THE WORST BREACH OF CELLULAR ETIQUETTE AND ONE THAT HE OFTEN IS GUILTY OF IS TO DRIVE AND TALK AT THE SAME TIME ESPECIALLY IN A STICKSHIFT VEHICLE YOU WONDER HOW MUCH DRIVING IS BEING DONE HE SAYS BUT THEN HERE I AM THE POT CALLING THE KETTLE BLACK STILL AS CELLULAR PHONES GROW IN POPULARITY MANY USERS ARE LIKELY TO BE PUZZLED BY WHAT'S GOOD ETIQUETTE AND WHAT'S NOT FOR INSTANCE IS IT RUDE TO RECEIVE AN URGENT BUSINESS CALL DURING A DATE SINCE CELLULAR CALLS ARE OFTEN EXPENSIVE HOW DO YOU POLITELY CUT PEOPLE OFF AFTER A CERTAIN POINT FOR THAT MATTER WHOM SHOULD YOU GIVE YOUR CELLULARPHONE NUMBER TO AND DO YOU ASK THEM TO USE IT ONLY IN AN EMERGENCY MANY USERS FALL BACK ON RULES OF COMMON COURTESY JOHN SULLIVAN A CORPORATE ACCOUNT MANAGER FOR NYNEX MOBILE CORP A UNIT OF NYNEX CORP USES HIS PHONE WHILE SHUTTLING BETWEEN PHILADELPHIA AND NEW YORK ON A COMMUTER TRAIN SOMETIMES I WANT TO SCREAM AT THE OTHER PARTY HE SAYS BUT I'VE GOT TO BE MORE POLITE BECAUSE THERE ARE SOME THINGS YOU JUST CAN'T SAY IN A PUBLIC PLACE OTHER TIMES POLITE BEHAVIOR MAY YIELD TO MORE PRACTICAL CONSIDERATIONS KURT HUDSON A SALESPERSON FOR INTEGRATED CONTROLS IN SIGNAL HILL CALIF SAYS HE HAS LEARNED THAT IT'S NO GREAT SIN TO BE REALLY SHORT WITH PEOPLE BECAUSE CELLULAR PHONE CALLS TEND TO BE EXPENSIVE MY BOSS LOVES TO TALK HE SAYS BUT I CUT HIM OFF MR HUDSON ALSO POINTS OUT THAT ATTITUDES TOWARD CELLULARPHONE CALLS FROM PUBLIC PLACES CAN VARY DEPENDING ON WHERE YOU ARE OUT HERE YOU DON'T GET MUCH OF A LOOK IN A RESTAURANT IF YOUR POCKET SUDDENLY STARTS RINGING HE EXPLAINS IT'S STANDARD PROCEDURE BUT HE ADDS I'M FROM BOSTON AND I STILL FEEL WEIRD ABOUT IT IF TECHNOLOGY MUDDIED THE WATERS OF ETIQUETTE FOR CELLULARPHONE USERS IN THE FIRST PLACE IT MAY ALSO BE COMING TO ITS RESCUE MERLE GILMORE A SENIOR VICE PRESIDENT AT MOTOROLA INC A SCHAUMBURG ILL MAKER OF CELLULAR PHONES SELDOM LEAVES HIS PHONE ON WHEN IN A PUBLIC PLACE INSTEAD HE CARRIES A VIBRATING PAGER THAT DISCREETLY INDICATES THAT SOMEONE'S TRYING TO REACH HIM IF IT'S AN IMPORTANT CALL HE SAYS I EXCUSE MYSELF AND GO TO A PAY PHONE CELLULARPHONE OWNERS CAN ALSO FORWARD INCOMING CALLS TO A VOICEMAIL MESSAGE OR ANY OTHER NUMBER WHEN IN A RESTAURANT FOR INSTANCE THE CALL CAN BE FORWARDED TO THE ESTABLISHMENT ITSELF AND THE PHONE OWNER CAN BE POLITELY INFORMED BY THE MAITRE D' THAT HE OR SHE HAS A CALL EVENTUALLY IT WILL BECOME A NORM FOR PEOPLE TO USE CELLULAR PHONES EVEN IN PUBLIC PLACES MR GILMORE SAYS PEOPLE WILL THINK NOTHING OF IT MR NAIK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9402110002 940211 BUSINESS BRIEF DATA BROADCASTING CORP DEFINITIVE AGREEMENT IS SET FOR ACQUISITION OF COMPANY DATA BROADCASTING CORP A NEW YORK PROVIDER OF REALTIME FINANCIAL MARKET DATA AND NEWS SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PRIVATELY HELD CAPITAL MANAGEMENT SCIENCES FOR 243 MILLION IN CASH STOCK AND NOTES CAPITAL MANAGEMENT SCIENCES OF LOS ANGELES PROVIDES FIXEDINCOME ANALYTICS DATA TO INSTITUTIONS INVESTMENT MANAGERS AND PROFESSIONAL INVESTORS FOR THE FISCAL YEAR ENDED SEPT 30 IT HAD REVENUE OF 88 MILLION AND OPERATING PROFIT OF 23 MILLION DATA BROADCASTING HAD REVENUE OF 148 MILLION AND PROFIT OF 927000 OR FIVE CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 IN NASDAQ STOCK MARKET TRADING DATA BROADCASTING CLOSED AT 550 UP 125 CENTS 9402110001 940211 COMMODITIES PRICES FOR COPPER FUTURES DROP AGAIN ON RISING SUPPLIES IN US CONCERN OVER JAPAN'S ECONOMY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPERFUTURES PRICES CONTINUED TO TUMBLE ON STOCK MARKET WEAKNESS INDICATIONS OF INCREASING US SUPPLIES AND CONCERNS ABOUT JAPAN'S ECONOMIC HEALTH AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS DOWN 125 CENTS TO 8560 CENTS A POUND SINCE FEB 2 WHEN THE MARCH CONTRACT REACHED A HIGH OF 9130 CENTS A POUND THE PRICE HAS FALLEN ABOUT 6 COPPER'S PRICE HAD BEEN SUPPORTED IN PRIOR WEEKS BY A SPATE OF POSITIVE US ECONOMIC REPORTS AND PERSISTENT DECLINES IN THE WAREHOUSE STOCKS OF COPPER MAINTAINED BY THE WORLD'S TWO MAIN COPPER MARKETS THE COMEX AND THE LONDON METAL EXCHANGE BUT THE FED'S TIGHTENING OF INTEREST RATES LAST FRIDAY AND THE SUBSEQUENT WEAKNESS OF THE US STOCK MARKET HAVE BEEN SEEN AS NEGATIVE SIGNS FOR COPPER WHICH IS AN ECONOMICALLY SENSITIVE INDUSTRIAL COMMODITY IT WAS GETTING A LITTLE OVERBOUGHT ON THE UPSIDE SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN MOREOVER MR DEMLER SAID RUMORS ARE CIRCULATING IN THE MARKET THAT COPPER FROM LME WAREHOUSE STOCKS MAY SOON BE SHIPPED TO THE US WHERE COPPER SUPPLIES ARE CURRENTLY TIGHT INCREASES IN US SUPPLIES WOULD LIKELY CONTINUE TO EXERT DOWNWARD PRESSURE ON PRICES WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID WORRIES ABOUT THE STATE OF US TRADE NEGOTIATIONS WITH JAPAN ARE ALSO PULLING COPPER PRICES LOWER ANY THREAT TO THE JAPANESE ECONOMY WOULD BE A NEGATIVE TO COPPER MARKET MR O'NEILL SAID JAPAN IS A BIG PRODUCER AND USER OF COPPER A BIG ELEMENT OF THE COPPER MARKET THE STEADINESS OF COPPER'S PLUNGE IN THE PAST NINE DAYS HAS ATTRACTED COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THAT TRADE ON THE BASIS OF THEIR OWN MATHEMATICAL PRICE PROJECTIONS RATHER THAN SUPPLYANDDEMAND FUNDAMENTALS ANALYSTS SAY THESE FUNDS HAVE HELPED TO PRESSURE PRICES LOWER BY SELLING FUTURES CONTRACTS AT THE COMEX IN PART BECAUSE OF THE SELLING PRESSURE IN THE MARKET MR O'NEILL PREDICTS THAT PRICES WILL DECLINE AN ADDITIONAL TWO TO THREE CENTS A POUND IN THE SHORT TERM IN OTHER COMMODITY MARKETS YESTERDAY ENERGY ADDITIONAL COLD WEATHER IN THE US NORTHEAST BOOSTED THE PRICES OF HEATINGOIL FUTURES CONTRACTS WHILE PRICES FOR CRUDE AND GASOLINE CONTRACTS DECLINED IN MODERATE TRADING VOLUME ALTHOUGH A RALLY LATE IN YESTERDAY'S TRADING SESSION GAVE A BOOST TO ENERGY PRICES MOST MARKET PARTICIPANTS BELIEVE THAT CRUDEOIL PRICES ARE SET FOR A DECLINE HEATINGOIL PURCHASES SPARKED BY THE RECENT COLD WEATHER HAVE HELPED TO PROP UP OIL PRICES ACROSS THE BOARD BUT AS IT BECOMES LATER IN THE HEATING SEASON INTEREST IN BUYING HEATING OIL WILL WANE THEY SAY AND MARKET PARTICIPANTS REMAIN SKEPTICAL THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL REACH AN AGREEMENT TO CUT PRODUCTION FOR THE SECOND QUARTER WHEN ALL THE ESTIMATES INDICATE WORLDWIDE DEMAND WILL FALL OIL MINISTERS OF SOME OPEC NATIONS ARE CURRENTLY TOURING THE MIDDLE EAST IN AN ATTEMPT TO GAIN SUPPORT FOR A PRODUCTION CUT BY THE ORGANIZATION BUT THEY APPEAR TO BE STIRRING UP LITTLE MORE THAN RHETORIC SO FAR LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES FELL ON EXPECTATIONS OF INCREASED HOG SLAUGHTER NEXT WEEK AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR MARCH DELIVERY WERE DOWN 190 CENTS TO 5572 CENTS A POUND ONLY ABOUT 12 MILLION HOGS HAVE BEEN SLAUGHTERED SO FAR THIS WEEK DOWN ABOUT 10 FROM THE SAME WEEK A YEAR AGO PEOPLE ARE LOOKING FOR A REBOUND IN SLAUGHTER NEXT WEEK SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS HOGS HELD UP BY THIS WINTER STORM THAT JUST PASSED HAVE TO COME TO MARKET 9402110176 940113 REGULATORY CHOKEHOLD OSHA TO BUSINESS SLOW DOWN YOU WORK TOO FAST BY EUGENE SCALIA TODAY IN LOS ANGELES CALIFORNIA'S OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD OPENS HEARINGS TO CONSIDER REQUIRING BY LAW THAT EMPLOYERS IN THE STATE ADJUST THEIR WORK PACE THE ADJUSTMENT CALOSHA HAS IN MIND IS DOWNWARD TO THOSE SURPRISED TO FIND THE NOLONGERSOGOLDEN STATE GIRDING TO REQUIRE ITS REMAINING BUSINESSES TO DO LESS WELCOME TO THE SAFETY AND HEALTH JUGGERNAUT THAT IS ERGONOMICS ERGONOMISTS DEFINE THEIR DISCIPLINE AS THE STUDY OF WORKERS' RELATION TO THEIR ENVIRONMENT ERGONOMIC MEASURES ARE THE FAVORED SOLUTION TO CARPAL TUNNEL SYNDROME AND OTHER CUMULATIVE TRAUMA DISORDERS CTDS PURPORTEDLY CAUSED BY REPETITIVE FORCEFUL MOTIONS AT WORK THE CALOSHA HEARINGS RESULT FROM THE STATE ASSEMBLY'S REQUIREMENT THAT AN ERGONOMICS RULE BE ADOPTED TO MINIMIZE THE INSTANCES OF INJURY FROM REPETITIVE MOTION A SIMILAR MANDATE IS PENDING IN CONGRESS WHERE LABOR SECRETARY ROBERT REICH HAS TESTIFIED THAT CTDS ARE THE OCCUPATIONAL DISEASES OF THE INFORMATION AGE THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALREADY HAS PROMISED A DRAFT STANDARD BY FALL AND FOR SEVERAL YEARS NOW IT HAS BEEN PROSECUTING COMPANIES UNDER THE FEDERAL ACT'S GENERAL DUTY CLAUSE SO FOR INSTANCE FED OSHA HAS CHARGED THAT RISK OF DEATH OR SERIOUS PHYSICAL HARM LURKS IN THE HAND MOTIONS THAT PRODUCE PEPPERIDGE FARM'S DELIGHTFUL MILANO COOKIES ERGONOMICS' APPEAL LIES IN ITS UNQUESTIONABLE PREMISE AND ITS EQUALLY UNQUESTIONABLE AND UNQUESTIONABLY ATTRACTIVE CONCLUSION THE PREMISE HARD WORK IS TIRING AND SOMETIMES UNCOMFORTABLE EVEN PAINFUL THE CONCLUSION WORK LESS AND YOU'LL FEEL BETTER WHY I'VE EXPERIENCED THE VERY THING MYSELF THOUGH USUALLY PACKAGED IN PSEUDOSCIENTIFIC JARGON ERGONOMISTS' REMEDIES REFLECT A SIMILAR ROUGH COMMON SENSE CTDS THE THEORY GOES ARE THE PRODUCT OF REPETITION FORCE AND POSTURE TO CURE THEM REDUCE REPETITIONS ADJUST THE WORK PACE HIRE SEVEN EMPLOYEES TO DO THE WORK OF FIVE GIVE EMPLOYEES FREQUENT REST PERIODS AS FOR FORCE LESSEN IT BY DROPPING THE WEIGHT OF WHAT EMPLOYEES PRESS LIFT AND CARRY REDESIGN THE WORKSTATION TO IMPROVE EMPLOYEES' POSTURE ALL OF THESE MEASURES ARE EITHER EXPRESSED OR IMPLIED IN THE PROPOSED CALIFORNIA STANDARD THEY ARE TO BE TAKEN BY EMPLOYERS TO AN INDETERMINATE EXTENT ON A FINDING OF SUCH CTD SYMPTOMS AS PAIN FROM MOVEMENT THE MEASURES ALREADY ARE BEING DEMANDED BY FEDERAL AND STATE OSHA REGULATORS IN CASES LIKE THAT AGAINST PEPPERIDGE FARM NOR IS THIS THE LIMIT OF ERGONOMISTS' AGENDA FOR THEY HAVE IN STORE FOR EMPLOYEES A STILL GREATER FREEDOM UNEMPLOYMENT OSHA INSPECTORS MAY NOT BE ENGINEERS THEY MAY NOT BE PHYSICIANS BUT THEY CAN SURELY RECOGNIZE THAT IF A GIVEN OPERATION REQUIRED NO WORKERS AT ALL ILLNESS AND INJURY WOULD DISAPPEAR AUTOMATION IS ACCORDINGLY A COMMONLY PROPOSED ERGONOMIC MEASURE THIS PAST FALL AT A JOB SAFETY CONFERENCE IN CHICAGO A MEATPACKINGPLANT MANAGER SWELLED WITH PRIDE AT A FILM OF ONE OF HIS COMPANY'S FULLY AUTOMATED OPERATIONS WITH NARY A WORKER IN SIGHT WE USED TO HAVE HURT BACKS HURT SHOULDERS HE COMMENTED BUT NOT ANYMORE UNION MEMBERS IN THE AUDIENCE WERE WISE TO TAKE NOTE MOST AMBITIOUS OF ALL HOWEVER IS ERGONOMISTS' PROGRAM TO REACH BEYOND PHYSICAL CONDITIONS OF THE WORKPLACE TO ADDRESS THE VERY TERMS OF EMPLOYMENT INCREASINGLY ERGONOMISTS AND THEIR CRITICS ARE FINDING THAT EMPLOYEE REPORTS OF CTDS WHICH ARE DIFFICULT TO VERIFY OBJECTIVELY CORRELATE MORE STRONGLY WITH GENERALIZED JOB DISSATISFACTION THAN WITH A JOB'S PHYSICAL DEMANDS WITH ADMIRABLE PERSISTENCE ERGONOMISTS ARE NOW RECOMMENDING CHANGES TO THE PSYCHOSOCIAL CONDITIONS OF THE WORKPLACE THE RESEARCH ARM OF OSHA HAS RECOMMENDED MANDATORY ERGONOMICS PROGRAMS TO ADDRESS AMONG OTHER THINGS OPPORTUNITY FOR ADVANCEMENT WORKER FEEDBACK AND MANAGEMENT STYLE AND CLIMATE PERHAPS INSTEAD PSYCHOSOCIAL CAUSES OUGHT TO OCCASION SOME LASTMINUTE REFLECTIONS ON THE DOUBTFUL SCIENCE UNDERLYING ERGONOMICS IN THE WORDS OF ERGONOMICS GURU DON CHAFFIN WHAT THE FIELD LACKS IS GOOD EVALUATIONS THAT HOLD UP TO SCIENTIFIC SCRUTINY WHILE NO ONE DOUBTS THAT HARD WORK CAN BECOME TIRING AND UNCOMFORTABLE RESPECTED PHYSICIANS QUESTION FIRST WHETHER CTDS EXIST AS A DIAGNOSABLE CONDITION FALLING WITHIN OSHA'S AUTHORITY TO ADDRESS ILLNESS AND INJURY WHILE DISPUTING THIS ERGONOMISTS ACKNOWLEDGE SECOND THAT AN AILMENT CARRYING ALL THE SYMPTOMS OF A CTD MIGHT HAVE CAUSES OTHER THAN REPETITION AND FORCE AND THEREFORE NOT BE A CTD AT ALL DIAGNOSIS IS HARD IN ANY GIVEN CASE THIRD AND PERHAPS MOST NOTABLE OF ALL ERGONOMISTS READILY CONFESS NOT TO KNOW THE LEVELS AT WHICH REPETITION AND FORCE BECOME HAZARDOUS IN OTHER WORDS WHILE COMMANDING BUSINESS ON PAIN OF CIVIL OR EVEN CRIMINAL PENALTY TO REDUCE REPETITION AND FORCE TO NONHAZARDOUS LEVELS OSHA REGULATORS DO NOT KNOW THEMSELVES WHERE THIS LINE BETWEEN LEGAL AND ILLEGAL CONDUCT LIES SUCH A MANDATE IS PROBABLY UNCONSTITUTIONAL AND IS CERTAINLY STUPID POLICY BEFORE PARADING NAKED FOR HIS COUNTRYMEN THE EMPEROR WHO WORE NO CLOTHES PAID A HEFTY SUM TO CLEVER TAILORS WHO ASSURED HIM THEY HAD WOVEN A FINE GARMENT INDEED OTHER COUNTRIES NOTABLY AUSTRALIA HAVE INVESTED SMALL FORTUNES IN ERGONOMIC REFORM ONLY TO SEE THEIR CTD EPIDEMICS WAX AND WANE REGARDLESS OF THE MEASURES TAKEN AS ERGONOMICS RISES TO THE TOP OF THE NATION'S LABOR AGENDA POLICY MAKERS WOULD DO WELL TO TAKE CAREFUL MEASURE OF THE SCIENCE UNDERLYING IT MR SCALIA A LAWYER IN WASHINGTON REPRESENTS MANAGEMENT IN OCCUPATIONAL SAFETY AND HEALTH MATTERS SEE RELATED LETTER LETTERS TO THE EDITOR TRAUMA NOT FANTASY WSJ JAN 25 1994 SEE RELATED LETTER LETTERS TO THE EDITOR THE INJURY IS HIDDEN BUT IT STILL HURTS WSJ FEB 11 1994 9401130005 9401250167 YY94 MM01 YY94 MM02 9402110159 940128 SCORING PLAY AFTER THE SUPER BOWL OF NFL FAMILY FEUDS WAYNE HUIZENGA WINS BLOCKBUSTER KING GOT A DEAL ON THE MIAMI DOLPHINS FROM SQUABBLING ROBBIES SOFTWARE' FOR THE TV MARKET BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL AS A 10YEAROLD KEVIN ROBBIE WAS THE ENVY OF EVERY KID IN AMERICA A BALLBOY FOR THE UNDEFEATED 1972 MIAMI DOLPHINS A PAL OF THE LEGENDARY LARRY CSONKA AND BOB GRIESE AS A 31YEAROLD HE IS CAUGHT IN THE LIVING NIGHTMARE OF A BATTLE WITHIN THE FAMILY BUSINESS A BROTHER FIRED A MOTHER SUED A NEVERENDING NOPADS SCRIMMAGE AMONG SIBLINGS MR ROBBIE HAS KNOWN THE TWO EXTREMES FOR ONE AND THE SAME REASON HE IS THE SON OF DOLPHINS FOUNDER AND LONGTIME OWNER JOE ROBBIE UPON HIS DEATH IN 1990 JOE ROBBIE LEFT BEHIND ONE OF THE NATIONAL FOOTBALL LEAGUE'S STRONGEST FRANCHISES COACHED BY DON SHULA TO MOST OF HIS RECORDSETTING 327 WINS HE ALSO LEFT A WILL THAT WOULD DRAG THE TEAM DOWN INTO A QUAGMIRE WHEN THE ROBBIES SOLD THE DOLPHINS TO VIDEOSTORE MOGUL H WAYNE HUIZENGA FOR 138 MILLION THIS WEEK THE TEAM FETCHED LESS THAN AN NFL EXPANSION ENTRY INDEED BECAUSE THE TRANSACTION NETTED 4 MILLION LESS THAN ANOTHER BIDDER'S OFFER AND WAS RUSHED TO COMPLETION IT MAY SPARK YET ANOTHER INTRAFAMILY LEGAL WAR IT'S POSSIBLE SAYS KEVIN ROBBIE SPEAKING FOR HIS FACTION WE FEEL LIKE WE COULD HAVE GOTTEN MORE THE MIAMI DOLPHINS' STORY IS A REMINDER THAT FOR ALL THE GRANDEUR OF SUNDAY'S SUPER BOWL PRO FOOTBALL IS REALLY A COLLECTION OF SMALL BUSINESSES A TYPICAL NFL TEAM GROSSES 50 MILLION TO 60 MILLION ANNUALLY WITH THE EXCEPTION OF THE GREEN BAY PACKERS THEY ARE PRIVATELY HELD AND THUS SUBJECT TO BEING RUN IN HIGHLY QUIRKY WAYS THE DOLPHINS ARE ALSO TYPICAL OF AN ENDANGERED SPECIES THROUGHOUT PRO SPORTS THE FAMILYRUN MOMANDPOP FRANCHISE JOE ROBBIE FOR WHOM THE DOLPHINS WERE A LIVELIHOOD STOOD FOR YESTERDAY WAYNE HUIZENGA FOR WHOM THE DOLPHINS ARE JUST ANOTHER PIECE OF SHOWBIZ SOFTWARE STANDS FOR TOMORROW THIS IS THE THIRD PRO SPORTS FRANCHISE HE HAS ACQUIRED IN THE PAST THREE YEARS THOUGH HIS CONTROL OF THE FLORIDA MARLINS BASEBALL AND FLORIDA PANTHERS HOCKEY MAY RUN HIM AFOUL OF THE NFL'S RULES AGAINST CROSSOWNERSHIP MEANWHILE BLOCKBUSTER ENTERTAINMENT CORP OF WHICH HE IS CHAIRMAN AND CHIEF EXECUTIVE HAS GONE FROM JUST RENTING MOVIES TO MAKING THEM VIA ITS ACQUISITION OF REPUBLIC PICTURES AND HIS SIGHTS ARE NOW SET ON DEVELOPING A 2300ACRE THEMEPARK AND SPORTS COMPLEX JUST NORTH OF MIAMI IN ADDITION BLOCKBUSTER HAS AGREED TO MERGE WITH VIACOM INC AND JOINED IN VIACOM'S BID FOR PARAMOUNT COMMUNICATIONS INC WAYNE IS A BIG BELIEVER IN THE POWER OF ENTERTAINMENT PROGRAMING AND HE'S DEEPLY COMMITTED TO SOUTH FLORIDA SAYS RUSSELL GOLDSMITH REPUBLIC PICTURES' CHAIRMAN YOU PUT THAT ALL TOGETHER AND IT GETS VERY INTERESTING THE WRENCHING CHANGEOVER FROM YESTERDAY TO TOMORROW WAS PERHAPS INEVITABLE FROM THE MOMENT OF MR ROBBIE'S DEATH UNTIL THEN THERE HAD BEEN NO DOUBT ABOUT THE DOLPHINS' BOSS OR COURSE FROM THE MOMENT HE PUT UP 65000 FOR THE TEAM IN 1966 TO THE DAY HE DIED IN JANUARY 1990 AT AGE 73 MR ROBBIE WAS AN AUTOCRAT DON SHULA ONCE THREATENED TO PUNCH HIM OUT FOR HUMILIATING HIM IN FRONT OF FRIENDS VERY FEW PEOPLE LOVED HIM BUT EVERYBODY RESPECTED HIM SAYS NORMAN BRAMAN THE PHILADELPHIA EAGLES' OWNER AND A MIAMI RESIDENT HE WAS THE ULTIMATE WINNER BUT LIKE MANY SEATOFTHEPANTS ENTREPRENEURS HE WAS AN OVERREACHER MR ROBBIE'S LAST MAJOR ACT BUILDING A 110 MILLION STADIUM WITH PRIVATE FINANCING SADDLED HIM WITH HUGE DEBTS HE REACHED OUT FOR AN INVESTOR IN JOE ROBBIE STADIUM TO SHARE THAT LOAD AND FOUND MR HUIZENGA EVEN ON HIS DEATHBED HOWEVER MR ROBBIE WAS A TOUGH CUSTOMER HE REFUSED TO GIVE MR HUIZENGA MORE THAN A 49 INTEREST AND THEIR TALKS COLLAPSED IN DECEMBER 1989 MR ROBBIE DIED SOON THEREAFTER LEFT CONTROL OF THE TEAM TO A TRUST AND NAMED THREE OF HIS NINE CHILDREN AS TRUSTEES TIM THEN 34 DAN THEN 28 AND JANET THEN 43 THEY PROMPTLY MADE THE DEAL WITH MR HUIZENGA THAT THEIR FATHER WOULDN'T A 50 STADIUM INTEREST AND A 15 STAKE IN THE TEAM MR HUIZENGA IN ADDITION GOT AN OPTION TO BUY ANOTHER 10 OF THE DOLPHINS BASED ON THEIR 1990 VALUATION OF 100 MILLION AND THE RIGHT TO MATCH ANY FUTURE OFFER FOR THE ROBBIES' STOCK THEY PANICKED SAYS DEBORAH OLSON ONE OF THE OTHER SIBLINGS THE TEAM WAS HEAVILY IN DEBT AND THIS WAS QUICK CASH BUT IT WAS DONE WITHOUT ANALYSIS MRS OLSON THREE OTHER SIBLINGS AND THEIR MOTHER ELIZABETH TRIED TO BLOCK THE TRANSACTION BUT IT WENT THROUGH AND THE FAMILY'S BLOOD FEUD WAS ON BY JULY 1990 THE THREE CONTROLLING CHILDREN HAD FIRED A DISSIDENT BROTHER MIKE FROM HIS EXECUTIVE VICE PRESIDENT POST ELIZABETH ROBBIE PUBLICLY SCOLDED THE THREE VIA FAXES TO REPORTERS THEN IN MARCH 1991 SHE DID A LOT MORE SHE FILED HER WIDOW'S ELECTION TO CLAIM THE 30 OF HER HUSBAND'S ESTATE THAT SHE WAS DUE UNDER FLORIDA LAW THE AIM WAS TO BREAK THE TRUST AND THE TRUSTEES' HOLD ON THE DOLPHINS THE WAR OF THE INS VS THE OUTS ESCALATED WITH THE FAMILY EVENLY SPLIT FOUR CHILDREN SIDING WITH THEIR MOTHER AND TWO OTHERS SIDING WITH THE THREE TRUSTEES WHEN THE DOLPHINS THREW SOCIAL EVENTS MRS ROBBIE WASN'T INVITED WHILE THE DOLPHINS PLAYED ONE GAME IN A DOWNPOUR DISSIDENT SIBLING DIANE TRULY WAS BARRED FROM THE COMFORT OF THE ROBBIES' OWNERS BOX AND HAD TO WATCH SOAKED IN THE STANDS WHEN DAD DIED THE THREE TRUSTEES BECAME A CLOSED SOCIETY SAYS MS TRULY 50 THE ELDEST ROBBIE CHILD POWER AND GLORY AND MONEY WENT TO THEIR HEADS AND CORRUPTED THEIR VALUES TIM ROBBIE THE DOLPHINS' PRESIDENT DENIES IT WHEN YOU COME FROM A BIG FAMILY THERE ARE A LOT OF DIFFERENCES OF OPINION AND IT'S INEVITABLE HE SAYS I THINK THERE WAS SIMPLY RESENTMENT THAT WE WERE CHOSEN AND THEY WEREN'T WHATEVER THE BASIC ORIGINS OF THE FEUD IT ESCALATED MRS ROBBIE CUT TIM AND SISTER JANET OUT OF HER WILL AND REDUCED BEQUESTS TO HER OTHER ESTRANGED CHILDREN THE INS SUED THEIR MOTHER TO TRY TO ELIMINATE HER AS A BENEFICIARY OF MR ROBBIE'S TRUST SHE DIED IN NOVEMBER 1991 AT AGE 69 BUT THE PROBLEMS WENT ON NOW AN ESTATE TAX OF MORE THAN 30 MILLION WOULD BE ASSESSED TO PAY IT THE DOLPHINS' SALE WAS INEVITABLE BUT BY NOW DESPITE A 1991 RANKING BY FINANCIAL WORLD AS SPORT'S SECOND MOST VALUABLE FRANCHISE 205 MILLION BY THE MAGAZINE'S CALCULATION THEY WERE DAMAGED GOODS THE INS WHO RAN THE TEAM HAD INHERITED THEIR FATHER'S HARDHEADEDNESS WITHOUT HIS BUSINESS ACUMEN THE DOLPHINS LOST 36 MILLION IN 1992 AND ACCORDING TO ONE PERSON KNOWLEDGEABLE IN NFL FINANCES ABOUT 7 MILLION IN 1993 TIM ROBBIE ASSERTS THAT THE TEAM WAS PROFITABLE IN 1993 ONE FACTOR WAS A SPIRALING PLAYER PAYROLL JOE ROBBIE HAD FOUGHT CONSTANTLY WITH COACH SHULA WHO FOREVER PRESSED TO SPEND BIG ON PLAYERS MR SHULA WON A LOT MORE GAMES ON THE GRIDIRON THAN ARGUMENTS IN THE OWNER'S OFFICE BUT THE COACH UTTERLY OVERRAN MR ROBBIE'S OFFSPRING DON GOES I WANT THIS PLAYER AND I WANT THAT PLAYER' AND THE KIDS CAN'T STAND UP TO HIM SAYS ONE NFL INSIDER FAMILIAR WITH THE DYNAMICS MIAMI'S SIGNING OF A RAFT OF HIGHPRICED FREE AGENTS LIKE TIGHT END KEITH JACKSON AND RECEIVER MARK INGRAM PUT THE DOLPHINS' PAYROLL AT ABOUT 40 MILLION THIS SEASON IN THE UPPER TIER OF THE NFL'S TOPSALARIED TEAMS ALSO HURTING FINANCES WERE THE TERMS OF THE TEAM'S LEASE WHICH DIVERT MAJOR REVENUE STREAMS LIKE LUXURYSUITE RENTALS TO THE SEPARATE COMPANY THAT OWNS THE STADIUM THAT DIDN'T MAKE SO MUCH DIFFERENCE WHEN THE ROBBIES OWNED BOTH BUT WHEN THEY PUT THE TEAM UP FOR SALE ON A STANDALONE BASIS IT DIMINISHED THE MARKET VALUE THE LURKING PRESENCE OF MR HUIZENGA DID TOO ANYBODY WHO BOUGHT THE DOLPHINS WOULD HAVE TO RECKON WITH HIM BOTH AS THE 50 OWNER OF THE STADIUM AND AS PRINCIPAL OWNER OF ITS OTHER OCCUPANT THE MARLINS THE BASEBALL AND FOOTBALL TEAMS HAVE HAD AN UNEASY RELATIONSHIP AS COTENANTS IF THAT DIDN'T GIVE A PROSPECTIVE DOLPHINS OWNER PAUSE MR HUIZENGA'S TALK OF MOVING THE MARLINS TO HIS PROPOSED ENTERTAINMENT COMPLEX DID THE BASEBALL TEAM'S PRESENCE CUT THE DOLPHINS' RENTAL BILL ITS ABSENCE WOULD RATCHET IT BACK UP TO SOME KNOWLEDGEABLE DOLPHINS WATCHERS MR HUIZENGA WAS TRYING TO JAWBONE DOWN THE TEAM'S MARKET VALUE MR HUIZENGA WAS UNAVAILABLE FOR COMMENT THIS WAS CERTAINLY IN HIS INTEREST UNDER THE PARTOWNERSHIP TERMS HE NEGOTIATED IN 1990 HE HAD THE RIGHT TO BUY THE REST OF THE TEAM BY MATCHING THE HIGHEST OFFER ANYONE ELSE MADE IT HAD A DEPRESSING EFFECT ON THE MARKET FOR THE DOLPHINS IF YOU LET SOMEBODY TAKE CONTROL OF THE PROCESS ON THE BUY SIDE YOU CAN'T GET UP A HEAD OF STEAM FROM OTHER OUTSIDE BIDDERS SAYS AN INVESTMENT BANKER WHO HAS HANDLED SPORTS TRANSACTIONS THE ROBBIES AS EVEN SOME NONFAMILY NEUTRALS SEE IT DIDN'T MANAGE THE DOLPHINS' SALE VERY WELL WHEN THE NEW ENGLAND PATRIOTS WERE UP FOR SALE FOR INSTANCE THE OWNERS HIRED A TOPFLIGHT INVESTMENT BANK TO MANAGE THE TRANSACTION AND IT ORCHESTRATED AN AUCTION THAT FETCHED 160 MILLION THE ROBBIES RETAINED A REGIONAL BANK HOLDING COMPANY CALLED MANY OF THE SHOTS THEMSELVES AND STUMBLED THROUGH A LONG DISJOINTED SELLING PROCESS THE ROBBIES HAD TWO NEARAGREEMENTS FALL THROUGH IN 1993 THEN CAME A 142 MILLION BID EARLY THIS MONTH FROM JOHN HENRY A BOCA RATON COMMODITIES TRADER THE ROBBIES DECIDING THE OFFER CARRIED TOO MANY CONDITIONS REJECTED IT THEN TELECOMMUNICATIONS MAGNATE GEORGE LINDEMANN GOT A TWOWEEK EXCLUSIVE NEGOTIATING PERIOD STARTING JAN 10 HE CAME IN AT 138 MILLION THE THREE INS CALLED A MEETING OF THE COMBINED STADIUM AND TEAM BOARDS WHICH INCLUDED ONE OF THE OUT SIBLINGS TO CONSIDER THE OFFER BUT BETWEEN THE TIME THE MEETING WAS SCHEDULED LAST FRIDAY AND WHEN IT WAS TO BE HELD ON TUESDAY MR HUIZENGA SWOOPED IN TO MATCH MR LINDEMANN'S BID THE THREE CONTROLLING TRUSTEES ACCEPTED IT SUNDAY TO THE SCREAMS OF THE OUTS IT'S EASY FOR ANYBODY SITTING ON THE SIDELINES TO QUESTION ANY DEAL SAYS TIM ROBBIE THE TEAM PRESIDENT BUT WE TALKED TO AT LEAST 20 PEOPLE WHO HAD INTEREST IN BUYING AND WE'RE VERY COMFORTABLE WITH THIS TRANSACTION OTHER ROBBIE SIBLINGS SOUGHT COMPETITIVE BIDDING AND DIDN'T THINK MR HUIZENGA WOULD MAKE A PREEMPTIVE STRIKE IT WAS DONE AROUND THE RULES IT WASN'T A VALIDLY CALLED MEETING TO APPROVE THE SALE SAYS MRS OLSON A BOARD MEMBER WHO LEARNED OF THE TRANSACTION ONLY AFTER THE FACT I RESPECT WAYNE HUIZENGA HE JUST JUMPED IN AT A GOOD TIME TO GET A GOOD DEAL HE LOOKED OUT FOR HIS INTERESTS AND I'M JUST TRYING TO LOOK OUT FOR MINE INDEED MR HUIZENGA HAS PROBABLY SWUNG A VERY GOOD DEAL THE NFL STANDS TO BE FLUSH OVER THE NEXT FOUR YEARS WITH 44 BILLION WORTH OF TV MONEY GUSHING IN AND LABOR PEACE FINALLY AT HAND THE CONTROL OF BOTH TEAMS USING JOE ROBBIE STADIUM ALSO GAINS HIM OPERATING EFFICIENCIES FOR MR HUIZENGA SPORTS IS EMERGING AS GREAT FODDER FOR THE EVOLVING MEDIA AND ENTERTAINMENT AGE IN WHICH HE IS A PLAYER WAYNE VIEWS THESE PROPERTIES AS SOFTWARE FOR THE BIGGER PICTURE SAYS DEAN JORDAN BROADCAST CHIEF FOR THE MARLINS AND MARKETING CHIEF FOR THE PANTHERS THE MARLINS MAKE JOE ROBBIE STADIUM GO FOR 81 GAMES A YEAR AND THAT MAKES MERCHANDISING CONCESSIONS TV AND OTHER THINGS GO AND ALL OF THAT IS PART OF A BIGGER PICTURE THAT'S STILL BEING DEFINED ON A DAILY BASIS THE ROBBIES WILL PROBABLY NOT BE PART OF THAT FUTURE A DEVELOPMENT THEY VIEW WITH MIXED EMOTIONS IT'S HARD SAYS KEVIN THE ONETIME BALLBOY IT'S BEEN MY LIFE BUT HIS SISTER MS TRULY LOOKS FORWARD TO THE END OF HAVING TO DEAL WITH HER ESTRANGED SIBLINGS I'LL BE GRATEFUL I DON'T HAVE THEM IN MY LIFE SEE RELATED LETTER LETTERS TO THE EDITOR DOLPHINS PROSPERED AS RESULT OF SALE WSJ FEB 11 1994 9401280001 YY94 MM02 9402110050 940114 LEGAL BEAT SOME STATES TRY TAXING DOCTORS TO COVER THE HIGH COST OF HEALTH CARE FOR THE POOR BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL FORTUNATO A WEST VIRGINIA DOCTOR OPENED A NEW OFFICE FIVE MILES ACROSS THE OHIO RIVER LAST SUMMER JUST FAR ENOUGH TO SHIELD PART OF HIS INCOME FROM WEST VIRGINIA'S NEW 2 TAX ON DOCTORS' REVENUES WHILE AN EXTREME REACTION DR FORTUNATO'S MOVE TO OHIO REFLECTS GROWING CONCERN WITHIN THE MEDICAL COMMUNITY ABOUT MANY STATES' NEW RELIANCE ON DOCTORS AND HOSPITALS TO HELP DEFRAY THE COST OF MEDICAL CARE FOR THE POOR WITHIN THE PAST YEAR LAWMAKERS IN MINNESOTA AND KENTUCKY ALSO HAVE IMPLEMENTED 2 REVENUE TAXES WHICH DOCTORS ARE CHALLENGING IN COURT NEBRASKA TENNESSEE MINNESOTA AND WASHINGTON DC HAVE PLACED NEW LICENSING FEES ON PHYSICIANS AND PHYSICIAN TAXES ARE ON THE AGENDA IN ABOUT A DOZEN STATES MEANWHILE ABOUT 25 STATES HAVE PLACED LEVIES ON HOSPITALS TO HELP CARRY THE BURDEN THESE NEW FINANCING EFFORTS SPRING FROM MANY STATES' INCREASING DESPERATION OVER THE COSTS OF THE FEDERAL MEDICAID PROGRAM FOR THE POOR WHICH IS PARTLY FUNDED BY THE STATES THE ASSESSMENTS HAVE RENEWED THE QUESTION OF WHETHER IT IS FAIR TO TAX ONE GROUP OF PEOPLE TO PAY FOR SERVICES THAT BENEFIT SOCIETY SIMILAR TAXES ON LAWYERS THAT HAVE BEEN PROPOSED IN SOME STATES FOR VARIOUS PURPOSES ALSO HAVE AROUSED CONTROVERSY BECAUSE SUCH TAXES OFTEN TARGET HIGHLY PAID AND SOMETIMES UNPOPULAR PROFESSIONS THEY HAVE BECOME POLITICALLY FASHIONABLE IN AN ERA OF PUBLIC HOSTILITY TO BROAD TAX HIKES STATES TYPICALLY JUSTIFY THE PHYSICIAN ASSESSMENT FOR INSTANCE AS A WAY OF REQUIRING DOCTORS TO FULFILL THEIR ETHICAL RESPONSIBILITY TO CARE FOR THE POOR IN ADDITION SOME STATE OFFICIALS POINT OUT BECAUSE THE STATE GIVES DOCTORS A VALUABLE AND EXCLUSIVE LICENSE TO PRACTICE MEDICINE IT HAS A RIGHT TO COLLECT A SMALL TAX FOR THE PUBLIC GOOD BUT THE TAXES HAVE TRIGGERED FIERCE RESISTANCE FROM THE AMERICAN MEDICAL ASSOCIATION AND ITS AFFILIATED STATE ORGANIZATIONS TAXING DOCTORS TO COVER HEALTH CARE FOR THE POOR IS LIKE BUILDING CONTRACTORS HAVING TO BUILD HOMES FOR THE HOMELESS OR LAWYERS HAVING TO PAY TAXES TO FUND THE BUILDING OF PRISON SYSTEMS SAYS ARDIS HOVEN THE PRESIDENT OF THE KENTUCKY MEDICAL ASSOCIATION THIS WAS BASICALLY A SPECIAL PROFESSIONAL TAX THAT WAS BENEFITING ONLY ONE SEGMENT OF SOCIETY THE INDIGENT IN KENTUCKY A GROUP OF PHYSICIANS THE STATE MEDICAL ASSOCIATION AND SOME HEALTHMAINTENANCE ORGANIZATIONS HAVE ARGUED THAT THE STATE'S NEW TAX WHICH ALSO ASSESSES HOSPITALS AND HMOS 25 OF THEIR REVENUES VIOLATES KENTUCKY'S CONSTITUTION IN NOVEMBER A JUDGE AGREED HIS RULING IS UNDER APPEAL THERE IS NO REASONABLE BASIS TO SINGLE OUT THESE HEALTHCARE PROVIDERS TO PAY SPECIAL TAXES TO SUPPORT THE MEDICAID PROGRAM WROTE STATE JUDGE ROGER CRITTENDEN IN HIS RULING THIS PROGRAM BENEFITS THE STATE'S RESIDENTS AS A WHOLE AND THERE ARE NO JUSTIFIABLE REASONS FOR ARBITRARILY DESIGNATING PHYSICIANS TO PAY FOR IT BUT LAST MONTH THE CHIEF JUSTICE OF THE KENTUCKY SUPREME COURT SAID THE STATE COULD CONTINUE COLLECTING THE TAX UNTIL THE APPEAL IS DECIDED STATES HAVE FOUND THEMSELVES SQUEEZED FINANCIALLY FROM SEVERAL DIRECTIONS ABOVE ALL THE PRICE OF MEDICAL CARE HAS SOARED THE FEDERAL GOVERNMENT HAS EXPANDED THE SERVICES COVERED BY MEDICAID AND HAS MADE MORE PEOPLE ELIGIBLE FOR IT AND THE RECESSION HAS DRIVEN MORE PEOPLE ONTO THE PROGRAM'S ROLLS CONGRESS HASN'T INCREASED THE FEDERAL SHARE OF MEDICAID FUNDING IN YEARS LEAVING THE STATES TO PICK UP THE SLACK MEDICAID HAS BECOME THE PACMAN OF STATE GOVERNMENT SAYS RICHARD HEGNER A MEDICAID SPECIALIST AT GEORGE WASHINGTON UNIVERSITY'S INTERGOVERNMENTAL HEALTH POLICY PROJECT PRESIDENT CLINTON'S HEALTH PLAN AS WRITTEN WOULD HELP RELIEVE THE STATES' FINANCIAL CRUNCH BY ELIMINATING MAJOR PARTS OF THE MEDICAID PROGRAM INSTEAD POOR AND UNEMPLOYED PEOPLE WOULD BE POOLED INTO THE SAME GIANT HEALTHCARE ALLIANCES AS THE GENERAL PUBLIC AND THE COST OF THEIR HEALTH COVERAGE WOULD BE PAID MOSTLY BY THE FEDERAL GOVERNMENT MEANWHILE LEGISLATURES THAT TAX PHYSICIANS ARE IN EFFECT ENCOURAGING THEM TO MAINTAIN THEIR INCOME BY REACHING OUT FOR NEW PATIENTS INCLUDING THOSE COVERED BY MEDICAID SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST YOU CAN STILL KEEP YOUR MERCEDES BUT INSTEAD OF GOING HOME AT 5 O'CLOCK YOU GO HOME AT 530 HE SAYS THE OTHER OPTION SAYS DR FORTUNATO OF WEST VIRGINIA IS TO MOVE OUT OF STATE DR FORTUNATO SEES ABOUT 20 OF HIS PATIENTS IN RENTED OFFICE SPACE IN MARTINS FERRY OHIO AND IS CONSIDERING MOVING HIS ENTIRE PRACTICE THERE IF THE TAX RATE IS RAISED ANTICIPATING SUCH A RESPONSE MINNESOTA HAS EXTENDED ITS TAX TO OUTOFSTATE PHYSICIANS WHO TREAT MINNESOTA PATIENTS PHYSICIANS IN NEIGHBORING NORTH DAKOTA SOUTH DAKOTA IOWA AND WISCONSIN HAVE FILED A LAWSUIT LARGELY FUNDED BY THE AMA CHALLENGING THE MINNESOTA BORDERSTATE TAX AS UNCONSTITUTIONAL THE FORMER GREENFIELD & CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS CONTINUES TO BE ROCKED BY DEFECTIONS LAST SUMMER NAME PARTNER RICHARD GREENFIELD LEFT THE HAVERFORD PA FIRM AMID A NEW JERSEY FEDERALCOURT INQUIRY INTO ALLEGATIONS OF ETHICAL IMPROPRIETIES IN A SECURITIES CLASS ACTION THAT HE HANDLED INVOLVING INVESTOR DONALD TRUMP MR GREENFIELD ULTIMATELY ACCEPTED A 5000 FINE AND A ONEYEAR SUSPENSION FROM THE PRACTICE OF LAW IN FEDERAL COURTS THAT STARTED JAN 1 THIS WEEK THE SURVIVING FIRM CHIMICLES BURT & JACOBSEN ANNOUNCED THAT TWO OTHER LAWYERS INCLUDING NAME PARTNER C OLIVER BURT AND PARTNER MICHAEL J PUCILLO WERE LEAVING TO FORM BURT & PUCILLO THE NEW FIRM WILL HAVE OFFICES IN HAVERFORD AND WILL ASSUME CONTROL OF THE FORMER CHIMICLES BURT OFFICE IN WEST PALM BEACH FLA A TOTAL OF FIVE LAWYERS INCLUDING PARTTIME LAWYERS ARE INVOLVED IN THE LATEST MOVE I THINK IT IS JUST A NATURAL EVOLUTION IN THE PRACTICE OF LAW THAT YOUNG LAWYERS WANT TO START THEIR OWN FIRM SAID MR PUCILLO 40 YEARS OLD MR BURT COULDN'T BE REACHED FOR COMMENT MR PUCILLO SAID THAT AMONG THE CASES THAT THE TWO LAWYERS WOULD BE TAKING WITH THEM WERE CLASSACTION SUITS AGAINST AMERIFIRST BANK AND SOUTHEAST BANKING CORP TWO FAILED FLORIDA LENDING INSTITUTIONS NICHOLAS CHIMICLES SAID THE DEPARTURES HAD NOTHING TO DO WITH THE TERMINATION OF GREENFIELD & CHIMICLES AND DIDN'T SUGGEST ANY MAJOR PROBLEMS AT THE FIRM THE FIRM WAS RENAMED CHIMICLES JACOBSEN & TIKELLIS AND MAINTAINS 32 LAWYERS WITH OFFICES IN LOS ANGELES WILMINGTON DEL AND HAVERFORD I FEEL VERY BAD ABOUT IT MR GREENFIELD SAID OF HIS OLD FIRM A BUNCH OF THESE GUYS ARE MY FRIENDS AND IT IS A SHAME THAT IT IS NOT HOLDING TOGETHER HE SAID THE FIRM HAD ABOUT 45 ATTORNEYS JUST BEFORE HE DEPARTED LAST YEAR TWO OLDLINE FLORIDA FIRMS MACFARLANE FERGUSON BASED IN TAMPA AND AUSLEY MCMULLEN MCGEEHEE CAROTHERS & PROCTOR BASED IN TALLAHASSEE ARE JOINING FORCES LITIGATIONORIENTED AUSLEY MCMULLEN WITH 32 LAWYERS IN TALLAHASSEE IS THE OLDEST AND BIGGEST LAW FIRM IN THE STATE CAPITAL ITS CLIENTS INCLUDE SPRINT CORP TECO ENERGY INC AND CSX CORP MACFARLANE FERGUSON IS BEST KNOWN FOR REPRESENTING LYKES BROS INC A CLOSELY HELD COMPANY IN TAMPA WITH VAST INTERESTS IN FLORIDA AGRICULTURE MEAT PACKING SHIPPING AND ENERGY THE MERGER WHICH TAKES EFFECT FEB 1 IS EXPECTED TO BOOST MACFARLANE FERGUSON'S STATEWIDE PRESENCE BEFORE THE PACT THE FIRM HAD ONLY FOUR LAWYERS IN TALLAHASSEE THE COMBINED FIRMS TO BE KNOWN AS MACFARLANE AUSLEY FERGUSON & MCMULLEN WILL HAVE 110 LAWYERS WITH 32 IN TALLAHASSEE 14 IN CLEARWATER AND 64 IN TAMPA RICHARD B SCHMITT AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR DOCTORS BECOME AN EASY TARGET WSJ FEB 11 1994 9401140090 YY94 MM02 9402100171 940210 MONEYFUND ASSETS INCREASE IN WAKE OF ACTION BY FED BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDIVIDUAL INVESTORS POURED 327 BILLION INTO MONEYMARKET MUTUAL FUNDS IN THE WEEK ENDED TUESDAY AS YIELDS ROSE SLIGHTLY FOLLOWING THE FEDERAL RESERVE'S MOVE ON FRIDAY TO RAISE SHORTTERM INTEREST RATES ASSETS OF 441 FUNDS OPEN TO INDIVIDUALS ROSE TO 31242 BILLION IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT WALTER FRANK CHIEF ECONOMIST FOR THE ASHLAND MASS NEWSLETTER SAID INVESTORS PROBABLY WERE RESPONDING TO THE DECLINE IN THE STOCK MARKET AND UNCERTAINTY ABOUT THE BOND MARKET AFTER THE FED'S MOVE INSTITUTIONS HOWEVER PULLED DOLLARS OUT OF MONEY FUNDS TO PURSUE HIGHER YIELDS IN DIRECT MARKET INVESTMENTS ASSETS OF 196 INSTITUTIONAL FUNDS FELL BY 814 BILLION TO 16914 BILLION MONEY FUND REPORT SAID MR FRANK PREDICTED THAT INSTITUTIONS WILL WITHDRAW MORE CASH AS FUND YIELDS LAG BEHIND RISING YIELDS IN THE OPEN MARKET IN THE LATEST WEEK THE COMBINED ASSETS OF ALL 637 TAXABLE FUNDS THAT REPORT DATA TO THE NEWSLETTER FELL BY 487 BILLION TO 48156 BILLION IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ROSE TO 275 FROM 271 ACCORDING TO MONEY FUND REPORT COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY TWO DAYS TO 59 DAYS SHORTER MATURITIES USUALLY COINCIDE WITH RISING SHORTTERM RATES BECAUSE THEY ENABLE PORTFOLIO MANAGERS TO TAKE ADVANTAGE OF HIGHER YIELDS SOONER THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 271 FROM 268 THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 269 AND THE AVERAGE 30DAY COMPOUND YIELD WAS UNCHANGED AT 273 ON TAXFREE MONEY FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD SLIPPED TO 182 FROM 186 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 284 FOR AN INVESTOR IN THE 36 TAX BRACKET AND EQUIVALENT TO 301 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 343 TAXEXEMPT FUNDS GREW BY 25 BILLION TO 1119 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY OF THE TAXFREE FUNDS' INVESTMENTS SHORTENED BY ONE DAY TO 56 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9402100170 940210 HUFFY TO BUILD PLANT IN MISSOURI DAYTON OHIO HUFFY CORP SELECTED A SITE IN FARMINGTON MO TO BUILD ITS NEW BICYCLE MANUFACTURING FACILITY THE COMPANY SAID IT PLANS TO SPEND ABOUT 20 MILLION TO BUILD THE FACILITY 9402100169 940210 INTERNATIONAL DENG ADVOCATES QUICKER GROWTH FOR SHANGHAI IN TV APPEARANCE BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI DENG XIAOPING CHINA'S PARAMOUNT LEADER APPEARED ON STATE TELEVISION FOR THE FIRST TIME IN MORE THAN A YEAR ADVOCATING EVEN FASTER GROWTH FOR SHANGHAI'S BOOMING ECONOMY MR DENG NOW 89 YEARS OLD APPEARED FRAIL AND AT TIMES UNAWARE AS HE TOURED SITES IN SHANGHAI BUT TELEVISION SHOWED HIM WALKING AND SHAKING HANDS WITH PARTY AND GOVERNMENT OFFICIALS INDICATING THAT LAST YEAR'S SCATTERED REPORTS OF HIS IMMINENT DEMISE WERE PREMATURE CHINESE AND MANY FOREIGN INVESTORS IN CHINA PAY CLOSE ATTENTION TO REPORTS OF MR DENG'S HEALTH BECAUSE THE AUTHORITARIAN REGIME HAS NO CLEAR OR POPULARLY SANCTIONED PLAN OF SUCCESSION SOME BELIEVE THE STABILITY OF THE COUNTRY AND THE FUTURE OF CHINA'S ECONOMIC REFORMS DEPEND ON HIS PERSONAL CONTROL OF THE COMMUNIST PARTY AND THE MILITARY MR DENG NO LONGER MAKES PUBLIC APPEARANCES AND EVEN SHOTS OF HIM ON TELEVISION NOW COME NO MORE THAN ONCE A YEAR STATE TELEVISION SHOWED THE SENIOR LEADER MEETING WITH SHANGHAI MAYOR HUANG JU WU BANGGUO SHANGHAI'S COMMUNIST PARTY CHIEF AND OTHER LOCAL OFFICIALS IN COMMENTS ATTRIBUTED TO HIM BY AN ANNOUNCER HE SAID THE SHANGHAI PEOPLE HAVE A SPECIAL QUALITY AND CHARACTER I THINK SHANGHAI HAS GOOD CONDITIONS TO BE DEVELOPED FASTER IN 1993 SHANGHAI'S ECONOMY GREW AT THE BREAKNECK RATE OF 15 SLIGHTLY ABOVE THE NATIONAL AVERAGE MR DENG HAS BEEN QUOTED CONSISTENTLY AS RECOMMENDING FASTER ECONOMIC GROWTH EVEN AS OTHER CHINESE LEADERS FRET ABOUT RISING INFLATION STRUCTURAL IMBALANCES A GROWING TRADE DEFICIT AND CURRENCY REFORM ALL OF WHICH THEY SAY ARE DIFFICULT TO SOLVE UNLESS CHINA RETURNS TO A MORE EVEN AND SUSTAINABLE RATE OF GROWTH CHINA WATCHERS HAVE SUGGESTED THAT MR DENG THINKING OF HIS LEGACY IS EAGER TO DEVELOP CHINA AS QUICKLY AS POSSIBLE BEFORE HIS DEATH AS EVIDENCE OF THE DIVISION WITHIN CHINA ON THE ISSUE OF ECONOMIC REFORM MR DENG'S APPEARANCE ON THE BROADCAST WAS JUXTAPOSED WITH ANOTHER SENIOR LEADER CHEN YUN WHO GREETED THE SAME SHANGHAI OFFICIALS THE 88YEAROLD MR CHEN A VETERAN ECONOMIST IS KNOWN FOR HIS THEORY OF BIRDCAGE ECONOMICS IN WHICH MARKET REFORMS TAKE PLACE ONLY WITHIN THE CAGE OF A CENTRAL PLAN THAT CONTRASTS WITH MR DENG'S HEARTIER EMBRACE OF A FREE MARKET IN HIS COMMENTS MR CHEN PRAISED SHANGHAI'S DEVELOPMENT BUT HAD WORDS OF CAUTION SPECIAL ATTENTION SHOULD BE PAID TO KEEPING THE SCALE OF CONSTRUCTION COMPATIBLE WITH THE COUNTRY'S ECONOMIC CAPABILITY MR CHEN WAS QUOTED AS SAYING COMMUNIST ELDERS REGULARLY ARE SHOWN ON TELEVISION DURING THE LUNAR NEW YEAR TO PASS ALONG THEIR GREETINGS MR DENG HOWEVER HAS VISITED SHANGHAI DURING THE HOLIDAY EACH YEAR SINCE 1988 AND NORMALLY RECEIVES EXCLUSIVE COVERAGE ON NEW YEAR'S EVE THIS TIME NOT ONLY DID HE SHARE THE TV TIME BUT MR CHEN'S WORDS OF ADVICE ON THE ECONOMY WERE QUOTED MORE EXTENSIVELY THAN MR DENG'S MR DENG RETIRED FROM HIS LAST OFFICIAL GOVERNMENT POST IN 1990 AND NOW SPENDS MOST OF HIS TIME IN SECLUSION BUT HIS TRIP THROUGH SOUTHERN CHINA AND SHANGHAI IN 1992 WHEN HE PRAISED CHINA'S FASTEST GROWING REGIONS AND OPENLY SCORNED CONSERVATIVE LEADERS IN OTHER AREAS UNLEASHED A FRANTIC ROUND OF DOMESTIC AND FOREIGN INVESTMENT THAT HAS KEPT ECONOMIC GROWTH ABOVE 13 TO THIS DAY DAYTODAY ECONOMIC MANAGEMENT IS NOW IN THE HANDS OF EXECUTIVE VICE PREMIER ZHU RONGJI WHO IS VIEWED AS FAVORING FAST AND THOROUGH REFORM 9402100168 940210 WHO'S NEWS INTERNATIONAL RECOVERY CORP INTERNATIONAL RECOVERY CORP MIAMI SPRINGS FLA BARRY L SILER 49 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF RISK MANAGEMENT AT THIS AVIATION FUELING SERVICES COMPANY MR SILER WAS FORMERLY MARKETING MANAGER AT MIECO INC A HOUSTON COMMODITIES TRADING COMPANY 9402100167 940210 COMPUTERS PCS POWERED WITH PENTIUMS HIT STORES EARLY BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE ARNOLD SCHWARZENEGGER OF PERSONAL COMPUTERS HAS ARRIVED AHEAD OF SCHEDULE AT A STORE NEAR YOU THE MACHINES WHICH ARE POWERED BY INTEL CORP'S SPEEDY PENTIUM MICROPROCESSOR ARE HITTING STORE SHELVES ABOUT A YEAR FASTER THAN NEW COMPUTER MODELS HAVE IN THE PAST THE PENTIUM CHIP RUNS NEARLY TWICE AS QUICKLY AS ITS PREDECESSOR AS A RESULT VIDEO APPEARS LESS JERKY AND SWITCHING FROM SAY A MULTIMEDIA ENCYCLOPEDIA'S DINOSAUR FILE TO ONE ON SPACE TRAVEL TAKES AS LITTLE AS A SECOND INSTEAD OF AS LONG AS FIVE SECONDS AMERICANS DON'T LIKE TO WAIT FOR ANYTHING SAYS MARK MACGILLIVRAY MANAGING DIRECTOR OF H&M CONSULTING IN SUNNYVALE CALIF FIVE SECONDS WAITING FOR A FILE TO OPEN SEEMS LIKE FOREVER IN THE PAST IT TOOK AS LONG AS TWO YEARS FOR SALES VOLUME TO DRIVE DOWN A NEW CHIP'S PRICE TO THE POINT WHERE THE CHIP COULD START FILTERING INTO HOMES FROM THE BUSINESS MARKET BUT COMPETITION IS SO GREAT IN THE COMPUTER INDUSTRY NOW THAT PC MAKERS HAVE CUT PRICES ON COMPUTERS WITH PENTIUM CHIPS TO BELOW 3000 FROM AS HIGH AS 6000 LAST YEAR AND ANALYSTS EXPECT THOSE PRICES TO FALL BELOW 2000 BY YEAR'S END ON MONDAY INTERNATIONAL BUSINESS MACHINES CORP'S IBM PC CO UNIT CUT PRICES AS MUCH AS 19 TO AS LOW AS 4149 ON PENTIUMBASED VALUEPOINT DESKTOPS FOR COMMERCIAL CUSTOMERS HELPING PC MAKERS LOWER THEIR PRICES IS THE FACT THAT INTEL OF SANTA CLARA CALIF HAS CUT ITS PENTIUM PRICES TO WARD OFF A GROWING CHALLENGE FROM RIVAL CHIP MAKERS ONE NEW COMPETITOR THE POWERPC DEVELOPED BY AN ALLIANCE OF APPLE COMPUTER INC MOTOROLA INC AND IBM IS MORE POWERFUL IN CERTAIN FUNCTIONS THAN THE PENTIUM ANALYSTS SAY BUT DOESN'T YET RUN ALL SOFTWARE PROGRAMS AS WELL IT WILL MAKE ITS DEBUT IN PERSONAL COMPUTERS NEXT MONTH WHEN APPLE LAUNCHES ITS POWERPC LINE OF MACINTOSHES IBM WILL FOLLOW WITH ITS OWN LINE OF POWERPC PERSONAL COMPUTERS LATER IN THE YEAR INTEL ALSO FACES PRESSURE FROM SMALLER CLONE COMPANIES LIKE ADVANCED MICRO DEVICES INC AND CYRIX CORP WHICH HAVE STEPPED UP PRODUCTION OF IMITATIONS OF EARLIER INTEL CHIPS INTEL SAYS PENTIUM WILL ACCOUNT FOR ABOUT 15 OF ITS CHIP SHIPMENTS THIS YEAR AND ANALYSTS EXPECT THAT TO RISE TO MORE THAN HALF BY NEXT YEAR IN THE NEXT MONTH INTEL WILL BEGIN A PENTIUM MARKETING BLITZ AIMED AT BOTH HOMES AND BUSINESS AND IT WILL START ADVERTISING IN RETAIL STORES WITH FLIERS AND VIDEO KIOSKS INTEL ALSO PLANS TO CONTINUE COUNTERATTACKING ITS RIVALS BY PREVIEWING AT A TECHNICAL CONFERENCE NEXT WEEK A NEW PENTIUM CODENAMED THE P54C ONE VERSION IS NEARLY 50 FASTER THAN THE SPEEDIEST PENTIUM TO DATE ACCORDING TO AN INTEL TECHNICAL ABSTRACT ON MARCH 7 INTEL PLANS TO UNVEIL A MIDRANGE MICROCHIP THAT COULD BE POPULAR FOR PORTABLES BECAUSE IT USES LOWER VOLTAGE EXTENDING BATTERY LIFE INTEL WEARY OF NAMECOPYING BY CLONES IS SCRAPPING THE 486 DESIGNATION AND CALLING IT THE DX4 THE ADVENT OF PENTIUMBASED PCS COINCIDES WITH AN EXPLOSION OF COMPUTER SALES TO HOMES WITH MANY BUYERS LOOKING FOR AS MUCH POWER AS POSSIBLE TO RUN THE MULTIMEDIA PROGRAMS OF TOMORROW THE BUYER IS GETTING MORE AND MORE AWARE OF WHAT THEY WANT AND WHAT THEY WANT IS PERFORMANCE SAYS MAL D RANSOM VICE PRESIDENT OF MARKETING FOR PACKARD BELL ELECTRONICS INC A BIG PC MAKER BASED IN WESTLAKE VILLAGE CALIF INDEED A SURVEY BY INTEL FOUND THAT TWOTHIRDS OF ALL RETAIL PC PURCHASES IN NORTH AMERICA LAST YEAR INVOLVED COMPUTERS POWERED BY ITS 486 CHIPS WHICH PRECEDED PENTIUM AS A TOP PERFORMER AND THAT FULLY TWOTHIRDS OF THOSE 486 BUYERS CHOSE THE MOST EXPENSIVE MACHINES PEOPLE ARE BUYING AT THE HIGH END OF THE MARKET SO THE MARKET IS RIPE FOR SUB3000 PENTIUMS SAYS PAUL OTELLINI AN INTEL SENIOR VICE PRESIDENT NOT EVERYONE OF COURSE WILL NEED TO RUN OUT AND BUY A PENTIUM MACHINE THE 486 CHIPS THAT POWER THE MAJORITY OF PCS BEING SOLD NOW ARE MORE THAN SUFFICIENT TO RUN SUCH TASKS AS SPREADSHEETS AND WORD PROCESSING AND EVEN A BIGGER PROCESSOR WON'T SPEED UP ACCESS TO ONLINE SERVICES THAT ARE SLOWED BY TOO MUCH DEMAND ONCE THEY SEE WHAT A PENTIUM WILL DO THEY WON'T WANT TO GO BACK BUT 486 IS MORE THAN A SERVICEABLE CHIP SAYS MR MACGILLIVRAY THE CONSULTANT THE MOST OBVIOUS ADVANTAGE OF STICKING WITH A 486 CHIP FOR NOW IS PRICE THE 486BASED PCS COST AS MUCH AS 1000 LESS THAN A PENTIUM FOR THOSE CONSUMERS WHO WANT AS MUCH POWER AS POSSIBLE THERE IS A RANGE OF CHOICES AST RESEARCH INC SAYS IT BEGAN SHIPPING ITS NEW PENTIUM LINE OF ADVANTAGE PCS LAST WEEK TO COMPUTER CITY PRICE/COSTCO SAM'S CLUB AND INCREDIBLE UNIVERSE ESTIMATED SALES PRICES BEGIN AT 2999 AST IRVINE CALIF SAYS IT HADN'T PLANNED TO BEGIN SHIPPING PENTIUM PCS TO RETAIL STORES FOR AT LEAST THREE MONTHS BUT MOVED UP THE DATE AFTER REQUESTS FROM RETAIL MANAGERS PACKARD BELL SAYS IT BEGAN SHIPPING ITS PENTIUM PCS THE LEGEND 5000 PRICED AT ABOUT 2700 INCLUDING MONITOR AND THE MULTIMEDIA LEGEND 5200 PRICED AT ABOUT 3000 WITH MONITOR ABOUT THREE WEEKS AGO PACKARD BELL OFFICIALS DECLINED TO IDENTIFY THE RETAIL OUTLETS BUT IT SELLS WIDELY IN SUCH MASSMARKET CHAINS AS PRICE/COSTCO CIRCUIT CITY AND SEARS ROEBUCK & CO DON CLARK CONTRIBUTED TO THIS ARTICLE WHAT IS A CHIP A MICROPROCESSOR OR CHIP IS THE BRAINS OF A COMPUTER IT IS MADE UP OF MILLIONS OF MICROSCOPIC CIRCUITS THAT ACT AS SWITCHES AND ARE ETCHED INTO TINY SQUARES OF SILICON WHAT DO CHIPS DO THEY RUN EVERYTHING FROM PCS TO VCRS AND WASHING MACHINES NEWER CHIPS ALLOW COMPUTERS TO DO MORE TASKS FASTER WHO MAKES THEM INTEL CORP CONTROLS ABOUT 80 OF THE MARKET FOR PERSONAL COMPUTER CHIPS MOTOROLA INC MAKES CHIPS USED IN CARS HOUSEHOLD APPLIANCES AND APPLE COMPUTERS POWERPC A CHIP DEVELOPED BY MOTOROLA APPLE AND INTERNATIONAL BUSINESS MACHINES CORP WILL SOON COMPETE AGAINST THE INTEL LINE 9402100166 940210 INTERNATIONAL DESPITE TAX BREAKS JAPAN BANKS NEED MORE AID THAN NEW STIMULUS PROMISES BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MASSIVE NEW ECONOMIC STIMULUS PACKAGE IS PARTLY AIMED AT HELPING THE NATION'S TROUBLED BANKS THE ONLY PROBLEM IS THEY ARE GOING TO NEED MUCH MORE NEW MEASURES INCLUDING GIVING TAX BREAKS AND FREEING UP THE BANKS TO RAISE NEW CAPITAL ARE SUPPOSED TO BOOST BOTH THE BANKS AND JAPAN'S MORIBUND REAL ESTATE MARKET NONETHELESS IT'S STILL GOING TO TAKE THE BANKS FIVE YEARS TO ABSORB THEIR LOSSES SAYS BETSY DANIELS FINANCIAL ANALYST AT MORGAN STANLEY JAPAN LTD JAPAN'S BANKS ARE ALREADY REACTING TO THE NEW RULES SOME OF WHICH WERE EXPECTED BEFORE THEIR INCLUSION IN TUESDAY'S 140 BILLION ECONOMIC STIMULUS PACKAGE BANKS HAVE BEEN SELLING LARGE AMOUNTS OF STOCK TO MAXIMIZE FUTURE TAX BREAKS ON WEDNESDAY THEIR SELLING HELPED SHAVE 40985 POINTS OR 2 OFF THE NIKKEI STOCK AVERAGE WHICH CLOSED AT 1984138 MORE THAN 15 OF THE STIMULUS PACKAGE IS AIMED AT BANKING AND REAL ESTATE THE GOVERNMENT WILL USE 500 BILLION YEN 46 BILLION PLUS SUBSIDIES AND NOINTEREST LOANS TO TAKE EXCESS LAND OFF THE MARKET THE LAND WILL BE WAREHOUSED SAYS A FINANCE MINISTRY OFFICIAL UNTIL DEMAND ACCELERATES LOCAL GOVERNMENTS WILL GET 15 TRILLION YEN TO TAKE LAND OFF THE MARKET WITH THE AIM OF INCREASING THE VALUE OF LAND STILL AVAILABLE BANKS MEANWHILE WILL BE ALLOWED TO SET UP PAPER COMPANIES TO TAKE OVER THEIR RESTRUCTURED LOANS BUYING THEM BACK FROM THOSE COMPANIES AT A LOWER VALUE THE BANKS WILL BE ABLE TO MOVE NONPERFORMING LOANS OFF THE BOOKS AND GET TAX WRITEOFFS ON THE DIFFERENCE IN THE LOAN VALUE MITSUBISHI BANK LTD REGARDED AS ONE OF JAPAN'S HEALTHIEST BANKS IS BRINGING LONGHELD SHARES TO MARKET IN PREPARATION FOR RESTRUCTURED LOAN SALES COMPANY OFFICIALS SAY MITSUBISHI PLANS TO SELL AND REPURCHASE MORE THAN 40 BILLION YEN OF STOCK USING THE PAPER PROFITS ON THE SALES TO WRITE DOWN DEBTS THE GOVERNMENT ALSO PLANS TO LET BANKS SHORE UP THEIR BALANCE SHEETS WITH PREFERRED SHARES AND OFFSHORE FUNDRAISING JAPAN HAS ALREADY TRIED TO RESTART ITS BANKING SYSTEM WITH LOW INTEREST RATES ACTIVELY BUYING UP THE STOCK MARKET AND MODEST TAX RELIEF BUT STYMIED BY PAST LENDING MISTAKES BANKS HAVE MADE ALMOST NO NEW LOANS THAT'S HOLDING BACK THE OVERALL ECONOMY MS DANIELS SAYS PEOPLE ARE STARTING TO REALIZE THAT YOU HAVE TO HAVE A CLEAR BALANCE SHEET BEFORE THE ECONOMY TURNS AROUND SHE SAYS NONE OF THE NEW MEASURES SOLVES THE UNDERLYING BAD DEBT PROBLEM BUT THE HOPE IS THAT THE PROGRAM MAY EFFECTIVELY PUT ASIDE MUCH OF THE PROBLEM UNTIL THE ECONOMY RECOVERS SUFFICIENTLY FOR COMPANIES TO ABSORB LOSSES WITHOUT DAMAGING GROWTH WHILE IT MIGHT BE FASTER AND IN THE LONG RUN CHEAPER FOR THE GOVERNMENT TO PLAY A MORE ACTIVE ROLE IN ABSORBING THE BAD DEBT FINANCE MINISTRY OFFICIALS SAY JAPANESE PUBLIC OPINION MAKES THAT IMPOSSIBLE THERE IS A FEELING THAT THE BANKS GOT THEMSELVES INTO THEIR PROBLEMS SAYS A SENIOR AIDE THEY CAN GET OUT OF THEIR PROBLEMS WITH THEIR OWN EARNINGS HOWEVER THAT WOULD MEAN SEVERAL YEARS WITH LOW BANK LENDING TOO LONG AS FAR AS THE ECONOMY IS CONCERNED WHAT'S MORE LIKELY ANALYSTS SAY IS THAT THE BANKS WILL EVENTUALLY DECLARE ANNUAL LOSSES BECAUSE OF BAD LOANS OR THE GOVERNMENT WILL STEP IN DIRECTLY TO BAIL OUT THE BANKS THE BEST WAY MS DANIELS SAYS WOULD BE TO USE PUBLIC MONEY TO CAPITALIZE AN ORGANIZATION TO TAKE OVER THE BAD DEBTS AN ENTITY RESEMBLING THE RESOLUTION TRUST CORP IN THE US JAPANESE PRESS REPORTS ARE SPECULATING ON THE RESIGNATIONS OF ONE OR MORE BANK PRESIDENTS THIS SPRING THE BANKS DENY THE TALK OF RESIGNATIONS WHICH IN JAPANESE CORPORATE ETIQUETTE WOULD BE NECESSARY BEFORE A BANK COULD DECLARE A LOSS OR THE GOVERNMENT COULD STEP IN 9402100165 940210 WHO'S NEWS BANK OF SAN FRANCISCO HOLDING CO BANK OF SAN FRANCISCO CO HOLDING CO SAN FRANCISCO CARL GUSTAVSON 52 YEARS OLD FORMER CHAIRMAN OF HIBERNIA BANK AND WILLARD SHARPE 71 FORMER CHIEF ASIAN ECONOMIST FOR CHASE MANHATTAN BANK WERE NAMED DIRECTORS OF THIS BANKHOLDING COMPANY 9402100164 940210 ARKLA PLANS TO CHANGE NAME HOUSTON ARKLA INC SAID IT PLANS TO CHANGE ITS NAME TO NORAM ENERGY CORP THE COMPANY SAID THE CHANGE IS SUBJECT TO SHAREHOLDERS' APPROVAL AT THE ANNUAL MEETING MAY 10 THE COMPANY SAID THAT WITH THE ADDITION OF MISSISSIPPI RIVER TRANSMISSION ENTEX AND MINNEGASCO IT HAS OUTGROWN THE GEOGRAPHICAL BOUNDARIES SUGGESTED BY THE NAME ARKLA ARKLA'S THREE DISTRIBUTION DIVISIONS ENTEX MINNEGASCO AND ARKANSAS LOUISIANA GAS AS WELL AS MISSISSIPPI RIVER TRANSMISSION WILL RETAIN THEIR CURRENT IDENTITIES HOWEVER ARKLA ENERGY RESOURCES AND ARKLA ENERGY MARKETING WILL OPERATE UNDER NEW NAMES IN CONJUNCTION WITH THE CORPORATE NAME CHANGE 9402100163 940210 BOEING MOVES INFORMATION UNIT WASHINGTON BOEING CO MOVED THE HEADQUARTERS OF ITS INFORMATION SERVICES BUSINESS TO WASHINGTON FROM SEATTLE IN A NEWS RELEASE BOEING INFORMATION SERVICES SAID IT DETERMINED THAT A CENTRAL LOCATION NEAR ITS CUSTOMERS ITS SUPPLIERS AND ITS TEAMING PARTNERS WILL POSITION BOEING TO BEST SERVE THE MARKETPLACE 9402100162 940210 ADVERTISING PRETTY MODELS ARE SUPPLANTED BY DRAWINGS OR A HUMMINGBIRD BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL ADVERTISEMENTS FOR APPAREL AND BEAUTYCARE PRODUCTS ARE GETTING SOME COSMETIC CHANGES INSTEAD OF FEATURING MODELS WITH CHISELED FEATURES AND HIGH CHEEKBONES IN ITS NEW ADS SHISEIDO THE JAPANESE MAKER OF COSMETICS AND FACIALCARE PRODUCTS IS USING A MINIMALIST DRAWING OF A WOMAN'S FACE OTHER FASHION AND BEAUTYPRODUCT ADVERTISERS ARE ALSO FORGOING MODELS IN FAVOR OF ILLUSTRATIONS OR NONHUMAN IMAGES LEVI STRAUSS & CO USED MATISSELIKE ABSTRACT DRAWINGS IN ADS FOR ITS WOMEN'S CLOTHING AND ITS ILLUSTRATIONS DIDN'T ALWAYS DEPICT RAILTHIN WOMEN EITHER BARNEYS NEW YORK THE NEW YORKBASED CLOTHING STORE USES ILLUSTRATIONS IN ITS LATEST CAMPAIGN IN PART AN EXECUTIVE SAYS TO CONVEY A SENSE OF WHIMSY AND COTY'S BESTSELLING FRAGRANCE VANILLA FIELDS USES A HUMMINGBIRD INSTEAD OF A HUMAN SADAO ABE CHAIRMAN AND CHIEF EXECUTIVE OF SHISEIDO COSMETICS AMERICA A UNIT OF SHISEIDO OF TOKYO SAYS THE NEW ADS THE FIRST DESIGNED SPECIFICALLY FOR THE US MARKET ARE BASED ON RESEARCH SHOWING THAT AMERICAN CONSUMERS DON'T WANT TO EMULATE THE PERFECT MODEL' FACE THE DRAWING ALLOWS CUSTOMERS TO PROJECT THEMSELVES HE SAYS IF WE USED A MODEL THE CUSTOMER MAY THINK THE PRODUCT ISN'T FOR HER THE AD'S DESIGN ALSO LEAVES MORE ROOM FOR COPY THE AD WHICH APPEARS IN MARCH ISSUES OF ALLURE ELLE GLAMOUR AND MIRABELLA CONVEYS MORE STRAIGHTFORWARD INFORMATION ABOUT THE PRODUCT MR ABE SAYS SOME MARKETING EXPERTS THINK SUCH AN APPROACH IS RISKY THIS JUST SHOWS SHISEIDO IS STILL UNABLE TO UNDERSTAND WHAT MAKES THE AMERICAN CONSUMER TICK SAYS ALLAN MOTTUS A HEALTHCARE AND BEAUTY MARKETING CONSULTANT THEY HAVE A SUPER PRODUCT AND SUPER PACKAGING BUT WHEN IT COMES TO MARKETING TO THE AMERICAN WOMAN THEY HAVEN'T DONE WELL YOU SEE MANY WOMEN WANT TO EMULATE THOSE MODELS INDEED SHISEIDO IS STILL A SMALL PART OF THE US COSMETIC BUSINESS ACCORDING TO MR MOTTUS THE COMPANY RECORDED RETAIL SALES OF 96 MILLION IN 1992 THE MOST RECENT AVAILABLE FIGURES CAPTURING 14 OF THE DEPARTMENTSTORE COSMETICS MARKET MR ABE REPORTS THAT LAST YEAR SHISEIDO'S SALES GREW 11 CAROL MOOG A PSYCHOLOGIST AND ADVERTISING CONSULTANT AT CREATIVE FOCUS IN BALA CYNWYD PA SAYS SHISEIDO'S SIMPLE DRAWING DOESN'T COMMUNICATE MUCH ABOUT THE BRAND IT LOOKS LIKE THEY'VE TRIED HARD NOT TO BE SHOWN AS PERFECTIONISTS SHE SAYS I DON'T FAULT THEM FOR TRYING TO DO SOMETHING DIFFERENT BARNEYS NEW YORK WHICH STILL USES MODELS IN SOME ADS LAST YEAR CREATED WHIMSICAL PRINT ADS DEPICTING SITUATIONS RANGING FROM A BLACKTIE RECEPTION TO CITY DWELLERS WAITING FOR A SUBWAY IN THE WINTER MODELS TEND TO BE MERCENARIES AND BE PERCEIVED AS GUNS FOR HIRE SAYS RONNIE COOKE CREATIVE DIRECTOR AND ASSOCIATE VICE PRESIDENT ADVERTISING AT BARNEYS SO THEY BECOME LESS BELIEVABLE THE MORE THEY'RE EXPOSED MS COOKE SAYS THE BARNEYS ADS REFLECT MUNDANE SITUATIONS AND SCENES FROM EVERYDAY LIFE LEVI STRAUSS SAYS IT DECIDED TO LOOK AT AN ARTIST'S PORTFOLIO INSTEAD OF A MODEL'S PHOTOGRAPHS FOR ITS ADS FOR WOMEN'S APPAREL BECAUSE WE ARE TRYING TO SPEAK TO A LARGE AUDIENCE FROM 15 TO 40YEAROLDS SAYS GEOFF THOMPSON SENIOR VICE PRESIDENT AND DEPUTY EXECUTIVE CREATIVE DIRECTOR AT FOOTE CONE & BELDING COMMUNICATIONS' SAN FRANCISCO OFFICE WHICH HANDLES THE ACCOUNT IT IS VERY DIFFICULT TO USE ACTUAL MODELS AND HAVE THEM RELEVANT TO EACH AGE GROUP SAYS MR THOMPSON WHO CONCEDES THERE WAS SOME RESISTANCE TO THE AD AGENCY'S PLAN WHEN IT WAS FIRST PRESENTED TO LEVI EXECUTIVES THEY ARE MERCHANTS AND THEY WANT TO SHOW REAL PRODUCT ON REAL PEOPLE AS OPPOSED TO REPRESENTATIVE PRODUCT ON REPRESENTATIVE PEOPLE BUT THE CAMPAIGN WHICH BEGAN IN PRINT THREE YEARS AGO WAS CONSIDERED SUCH A HIT THAT IT WAS USED IN LEVI'S TELEVISION COMMERCIALS LATE LAST YEAR SHISEIDO IS CONFIDENT IT WILL HAVE SIMILAR SUCCESS WE DON'T THINK THIS CARRIES ANY RISK SAYS MARI CHIHAYA SHISEIDO'S EXECUTIVE DIRECTOR OF ADVERTISING AND PUBLIC RELATIONS WE AREN'T TARGETING ANY ONE AGE GROUP WITH THIS AD IT EXPANDS OUR SCOPE THE LINE DRAWING IS AN APPEALING UNIVERSAL SYMBOL OF TIMELESSNESS GENTLENESS CLINIQUE ESTEE LAUDER INC THE CLOSELY HELD COSMETICS FIRM SAID IT HAS HIRED HAL RINEY & PARTNERS SAN FRANCISCO TO CREATE A TELEVISION ADVERTISING CAMPAIGN FOR ITS CLINIQUE BRAND CLINIQUE SAID IT WILL CONTINUE CREATING ITS OWN PRINT ADS WITH SAATCHI & SAATCHI'S AC&R ADVERTISING RETAINING MEDIA DUTIES FOR PRINT ADS BILLINGS HAVEN'T BEEN DETERMINED A CLINIQUE SPOKESWOMAN SAID ACCOUNT WATERFORD WEDGWOOD PLC TAPPED OMNICOM GROUP'S ALTSCHILLER REITZFELD FOR ITS US WEDGEWOOD ACCOUNT CONSOLIDATING ITS 5 MILLION IN ADVERTISING WITH THE BOUTIQUE THE ACCOUNT WAS PREVIOUSLY AT AMMIRATI & PURIS NEW YORK 9402100161 940210 CBS SPORTS LOOKS TO OLYMPICS FOR COMEBACK BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL CBS SPORTS STILL SMARTING FROM THE LOSS OF ITS 38YEAR NATIONAL FOOTBALL LEAGUE FRANCHISE IS PLANNING TO BE IN PERFECT FORM FOR THE OLYMPICS THE NETWORK IS FIERCELY INTENT ON BUILDING A NEW TRADITION OF WINTER OLYMPICS COVERAGE ACCORDING TO CBS INC'S CHAIRMAN LAURENCE TISCH CBS HAS ALREADY LOCKED IN THE RIGHTS TO THE 1998 WINTER GAMES WITH BOTH FOOTBALL AND MAJOR LEAGUE BASEBALL MOVING TO OTHER NETWORKS THIS YEAR THE WINTER GAMES WHICH BEGIN SATURDAY ARE THE BIGGEST SPORTS EVENTS ON THE CBS ROSTER THE UNFOLDING SCANDAL SURROUNDING THE ATTACK ON SKATER NANCY KERRIGAN AND WHETHER TONYA HARDING HAD A ROLE IN IT HAS GIVEN CBS'S COVERAGE OF THE GAMES IN LILLEHAMMER NORWAY A BIG BOOST THE PROMOTIONAL JOLT SURPASSES EVEN THE NETWORK'S OWN BLIZZARD OF ADS AND SOME PREDICT THAT THE WOMEN'S FIGURESKATING FINAL ON FEB 25 COULD SET AN OLYMPICS VIEWING RECORD THE TELECAST OF THE WOMEN'S SKATING FINAL IN 1992 DREW 25 OF ALL US HOMES WITH TV SETS ACCORDING TO NIELSEN MEDIA RESEARCH THIS TIME SAYS DAVID POLTRACK CBS'S SENIOR VICE PRESIDENT OF RESEARCH AND PLANNING THE NIGHT COULD DRAW 30 DEPENDING ON WHETHER MS KERRIGAN IS IN CONTENTION FOR A MEDAL AND WHETHER MS HARDING GETS TO COMPETE TURNER BROADCASTING SYSTEM INC'S TNT NETWORK WILL AIR 45 HOURS OF MOSTLY LIVE COVERAGE DURING WEEKDAY AFTERNOONS WHILE CBS'S 120 HOURS WILL BE MOSTLY TAPED CBS HOWEVER HOLDS THE RIGHT TO EMBARGO EVENTS INCLUDING THE WOMEN'S SKATING FINAL CBS HAS ALREADY RAISED ITS INTERNAL ESTIMATES OF HOW WELL THE GAMES WILL DO WITH VIEWERS THE NETWORK GUARANTEED ADVERTISERS AN AVERAGE AUDIENCE OF 186 OF THE NATION'S 942 MILLION TELEVISION HOMES BUT MR POLTRACK NOW PROJECTS THE GAMES WILL DRAW 19 OR MORE THAT PROJECTION IS BASED PARTLY ON A RECENT CBS TELEPHONE POLL WHICH FOUND THAT 37 SAID THEY WOULD DEFINITELY WATCH THE WOMEN'S FIGURESKATING COVERAGE THIS OLYMPICS IS AN UNUSUAL OPPORTUNITY FOR CBS COMING JUST TWO YEARS AFTER THE ALBERTVILLE GAMES WHICH THE NETWORK ALSO TELEVISED THE TWOYEAR INTERVAL IS PART OF THE INTERNATIONAL OLYMPICS COMMITTEE'S PLAN TO GET THE WINTER AND SUMMER GAMES ON ALTERNATING CYCLES CBS BASED ITS AMBITIOUS 186 RATING GUARANTEE ON THE 187 AVERAGE PRIMETIME RATING IT GOT FOR ALBERTVILLE WHEN IT BEAT THE OTHER NETWORKS ON 15 OF 16 NIGHTS THE MOST EVER FOR A WINTER OLYMPICS THE RISK THAT VIEWERS WON'T BE READY FOR ANOTHER MARATHON VIEWING EVENT SO SOON AFTER THE LAST IS OUTWEIGHED CBS EXECUTIVES ARGUE BY VIEWERS' FAMILIARITY WITH THE ATHLETES THE LILLEHAMMER GAMES WILL FEATURE MANY OF THE ATHLETES WHO COMPETED AT ALBERTVILLE FROM MS KERRIGAN TO SPEED SKATER BONNIE BLAIR THE 1992 GAMES ALSO TAUGHT CBS A LOT ABOUT WHICH EVENTS PLAY BEST WITH VIEWERS AMERICANS FOR EXAMPLE WON'T GET ANYTHING CLOSE TO THE 80 HOURS OF CROSSCOUNTRY SKIING TO BE AIRED IN NORWAY WHERE THAT SPORT IS A NATIONAL PASSION EVEN BEFORE THE ASSAULT ON NANCY KERRIGAN CBS KNOWING HOW AMERICANS LOVE FIGURE SKATING HAD ALREADY SCHEDULED IT ON 13 NIGHTS AS OPPOSED TO 10 DURING THE 1992 GAMES TONIGHT CBS NEWS AND THE SYNDICATED NEWS SHOW INSIDE EDITION WILL BROADCAST INTERVIEWS WITH MS HARDING INSIDE EDITION PAID MORE THAN 300000 FOR ITS INTERVIEW FOR WHICH IT GOT EXCLUSIVITY UNTIL EYE TO EYE AIRS CBS NEWS EXECUTIVES SAY THE NETWORK DIDN'T PAY FOR ITS INTERVIEW ANOTHER BIG QUESTION FOR CBS IS HOW GREG GUMBEL WILL FARE AS FIRSTTIME HOST CBS MADE A SWITCH FROM ITS 1992'S ANNOUNCERS TIM MCCARVER AND PAULA ZAHN BECAUSE OF LUKEWARM REVIEWS INSTEAD IT IS GAMBLING ON MR GUMBEL WHO PUT ON A PAIR OF SKIS FOR THE FIRST TIME WHEN HE POSED RECENTLY FOR A MAGAZINE PHOTO MR GUMBEL SAYS THE FACT THAT HE DOESN'T PARTICIPATE IN WINTER SPORTS HE'S NEVER BEEN ON ICE SKATES EITHER WON'T HINDER HIS WORK FLIP IT AROUND HE SAYS DO THE PLAYERS MAKE THE BEST COMMENTATORS ON THE GAME RARELY IT'S THE EXCEPTION RATHER THAN THE RULE OLYMPIC HOSTS TEND TO BE REMEMBERED AS MUCH FOR THEIR WARDROBES AS THEIR INTIMATE KNOWLEDGE OF SPORTS ANYWAY MR GUMBEL WILL BE OUTFITTED BY A FRENCH DESIGN HOUSE CALLED FACONNABLE HE'LL WEAR SUITS AND SPORTCOATS WITH VESTS AND A TIE IS ALWAYS APPROPRIATE HE SAYS IN ADDITION TO THE STANDARD COTERIE OF EXOLYMPIANS AND SPORTS ANNOUNCERS REPORTING ON INDIVIDUAL EVENTS CBS IS SPICING UP ITS COVERAGE WITH SOME UNUSUAL GUESTS SUCH AS GEN NORMAN SCHWARZKOPF HE'LL REPORT ON SUCH TOPICS AS A PROGRAM IN NORTHERN NORWAY TO TRAIN US ARMED FORCES IN COLDWEATHER WARFARE EVEN LATENIGHT HOST DAVID LETTERMAN IS PITCHING IN WITH OLYMPIC COVERAGE REPORTED BY HIS MOTHER DESPITE SOME UNEXPECTEDLY HIGH VALUEADDED TAXES FOR SERVICES IN NORWAY THE NETWORK EXPECTS TO HAVE LITTLE FINANCIAL RISK UNLIKE ALBERTVILLE WHERE CBS BROKE EVEN MR TISCH SAYS THE NETWORK WILL MAKE A PROFIT ON THE GAMES FOR WHICH IT PAID 295 MILLION IN RIGHTS FEES PRODUCTION COSTS WILL BE ABOUT 60 MILLION 10 LESS THAN IN ALBERTVILLE ABOUT 25 MILLION WAS OFFSET BY SELLING WEEKDAY AFTERNOON RIGHTS TO TNT IN ADDITION CBS HAS SOLD ALL ADVERTISING SLOTS FOR A TOTAL OF ABOUT 440 MILLION AS WITH ALBERTVILLE CBS'S OVERALL STRATEGY WILL BE TO TELL STORIES WITH ITS COVERAGE BUT THERE WILL BE SOME HIGHTECH EVENT COVERAGE TOO THE HOCKEY GAMES FOR EXAMPLE WILL BE COVERED WITH A NEW GOALIECAM MOUNTED IN THE GOALIE'S HELMET NETWORK EXECUTIVES EXPECT FEW TECHNICAL PROBLEMS THE WELLORGANIZED NORWEGIANS WERE FAR AHEAD OF THEIR ALBERTVILLE COUNTERPARTS IN THE INSTALLATION OF SUCH ITEMS AS CAMERA PLATFORMS AND MANY OF THE VENUES WERE CONSTRUCTED SPECIFICALLY WITH TELEVISION IN MIND THE CROSSCOUNTRY SKI TRAILS LOOP IN FRONT OF THE CAMERAS SO VIEWERS CAN SEE MORE THAN JUST THE TRADITIONAL CROSSING OF THE FINISH LINE CBS WAS ALSO ABLE TO CUT PRODUCTION COSTS BY STORING SOME OF ITS 1992 EQUIPMENT IN EUROPE BUT THAT MAY BE JUST A ONETIME SAVINGS CBS JUST PAID 375 MILLION FOR THE RIGHTS TO COVER THE 1998 WINTER GAMES WHICH WILL BE HELD IN NAGANO JAPAN 9402100160 940210 SMALL STOCK FOCUS PRICES SHOW SNAPPY GAINS AS INVESTORS TRACK COMPANY NEWS NOT INTEREST RATES BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS SHOWED WIDESPREAD GAINS WITH MAJOR INDEXES AGAIN APPROACHING RECORD LEVELS TRADERS SAID INVESTORS CONTINUE TO FOCUS ON SPECIFIC NEWS ABOUT COMPANIES RATHER THAN ON CONCERN ABOUT RISING INTEREST RATES AFTER THE FEDERAL RESERVE FRIDAY TIGHTENED MONETARY POLICY A NOTCH LATE LAST WEEK WE HAD A QUICK AND DIRTY CORRECTION BUT NOW WE'RE RIGHT BACK IN IT SAID BRETT DISCHER VICE PRESIDENT OF EQUITY TRADING AT DAIN BOSWORTH THE RISE IN RATES WAS MORE PSYCHOLOGICAL THAN A MEANINGFUL EVENT HE SAID RATES AREN'T HIGH ENOUGH FOR PEOPLE TO FLOOD INTO INTERESTRATE INSTRUMENTS THE RUSSELL 2000 INDEX OF SMALLCOMPANY STOCKS ROSE 183 OR 069 TO 26522 ABOUT 2 1/2 POINTS SHY OF ITS RECORD THE NASDAQ COMPOSITE INDEX CLIMBED 383 OR 049 TO 78653 ON NASDAQ ADVANCERS OUTPACED DECLINERS 1756 TO 1351 ON VOLUME OF 330 MILLION SHARES COMPARED WITH 310 MILLION SHARES TUESDAY NATIONAL MARKET VOLUME ROSE TO 277 MILLION SHARES FROM 262 MILLION SHARES ON TUESDAY AMERICAN MEDICAL ELECTRONICS CLIMBED 7/8 OR 69 TO 13 1/2 AFTER IT REPORTED FOURTHQUARTER EARNINGS OF 21 CENTS A SHARE UP FROM NINE CENTS A YEAR EARLIER THE RICHARDSON TEXAS COMPANY MAKES MEDICAL DEVICES GATES/FA DISTRIBUTING ROSE 1 1/8 OR 55 TO 21 1/8 ON NEWS THE GREENVILLE SC MICROCOMPUTER AND SOFTWARE DISTRIBUTOR IS MULLING A VARIETY OF ALTERNATIVES INCLUDING THE POSSIBLE SALE OF THE COMPANY AMERICA WEST AIRLINES PLUNGED 27/32 OR 30 TO 2 3/8 AFTER CNBC CORRESPONDENT DAN DORFMAN REPORTED THAT A MONEY MANAGER SAID THE PHOENIXBASED AIRLINE'S EQUITY MAY BE WORTH LITTLE IF ANYTHING THE COMPANY HAS BEEN OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE JUNE 1991 MONEY MANAGER STEVE MACKLEM OF ARAUCA PARTNERS WHOM MR DORFMAN NOTED HAS A SIGNIFICANT SHORT POSITION IN AMERICA WEST TOLD MR DORFMAN THAT IF A PROPOSAL BY NEW YORK MONEY MANAGER MICHAEL STEINHARDT TO PUMP 250 MILLION INTO THE COMPANY AND ACQUIRE 80 CONTROL GOES THROUGH CURRENT SHARES WILL BE CANCELED AND THE PUBLIC WOULD BE LEFT WITH PAPER IT COULD HANG ON THE BATHROOM WALLS SAPIENS INTERNATIONAL FELL 3 1/2 OR 203 TO 13 3/4 AFTER THE CARY NC SOFTWARE COMPANY SAID ITS 1993 EARNINGS WILL FALL BELOW THE 45 TO 50 CENTSASHARE RANGE COMPARED WITH 69 CENTS LAST YEAR SAMUEL GOLDWYN CO WAS DOWN 1 OR 87 TO 10 1/2 AFTER REPORTING THIRDQUARTER OPERATING EARNINGS OF 383000 COMPARED WITH 816000 A YEAR EARLIER THE AMEXTRADED HOLLYWOOD FILM COMPANY SAID IT HAD REDUCED ITS DEBT TO ABOUT 55 MILLION AT DEC 31 FROM ABOUT 95 MILLION A YEAR EARLIER SCOTT BLEIER VICE PRESIDENT OF TECHNICAL RESEARCH AT JOSEPHTHAL LYONS & ROSS SAID THAT PRIOR TO THE FED'S TIGHTENING THERE HAD BEEN A WIDESPREAD PERCEPTION THAT THE FIRST UPTICK IN RATES WOULD LEAD TO A MAJOR CORRECTION AND CONSOLIDATION OF STOCK PRICES BUT HE SAID THE ABILITY OF THE MARKET TO SHRUG OFF THE RATE INCREASE AND TO PUSH BACK TOWARD RECORD LEVELS SHOWS THAT THE MARKET IS STILL IN TRANSITION FROM AN INTERESTRATE DRIVEN MARKET TO AN ECONOMYDRIVEN MARKET BUT MR BLEIER WAS QUICK TO ADD FROM A TECHNICAL PERSPECTIVE WE'RE NOT OUT OF THE WOODS YET HE SAID THAT BEFORE THE MARKET CAN BREAK INTO VIRGIN TERRITORY IT WILL HAVE TO TEST THE LOWS HIT LATE LAST WEEK THE MARKET HE SAID CAN'T GO UP WITHOUT A BREAK MOREOVER HE EXPECTS INVESTORS TO SHOW CONTINUED CAUTION BECAUSE OF THE NEW INTERESTRATE STRUCTURE MR BLEIER LOOKS FOR THE MARKET TO TEST ITS RECENT LOWS BEFORE THE END OF THE QUARTER BUT THAT TEST WILL ONLY SERVE AS A TEMPORARY SETBACK HE SAID THE BULL MARKET IS NOT OVER 9402100159 940210 INTERNATIONAL SOROS MAY BUY SOME OF RADIO FREE EUROPE BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST FINANCIER GEORGE SOROS IS NEGOTIATING WITH US GOVERNMENTSUPPORTED RADIO FREE EUROPE/RADIO LIBERTY TO TAKE OVER THE BROADCASTER'S RESEARCH INSTITUTE AND ARCHIVES SUCH A DEAL WOULD CREATE A MEDIA VENTURE THAT RESCUES SOME OF THE BROADCASTER'S ACTIVITIES FROM US BUDGET CUTS BY PRIVATIZING AND INTEGRATING THEM INTO THE CENTRAL EUROPEAN UNIVERSITY A SOROSFINANCED GRADUATE SCHOOL WITH CAMPUSES IN PRAGUE AND BUDAPEST A DRAFT PROPOSAL FROM MR SOROS'S PHILANTHROPIC ORGANIZATION THE SOROS FOUNDATIONS CALLS FOR MR SOROS TO INVEST AS MUCH AS 25 MILLION DURING THE FIRST TWO YEARS TO MOVE THE INSTITUTE AND THE ARCHIVES TO PRAGUE FROM MUNICH AND TO COMPUTERIZE THE OPERATIONS THE BROADCASTING FACILITIES OF RADIO FREE EUROPE AND RADIO LIBERTY WHICH WILL REMAIN US GOVERNMENT SUPPORTED ALSO MIGHT BE RELOCATED TO THE CZECH CAPITAL BUT THAT HAD BEEN UNDER CONSIDERATION EARLIER IN THREE YEARS RESPONSIBILITY FOR THE INSTITUTE WHICH PROVIDES WRITTEN NEWS SUMMARIES AND INDEPTH REPORTS TO SUBSCRIBERS AND ITS CORE FINANCING WOULD COME UNDER THE CONTROL OF THE SOROS FOUNDATIONS UNDER THE PLAN THE INSTITUTE WOULD CONTINUE TO PROVIDE ITS SERVICES TO RADIO FREE EUROPE/RADIO LIBERTY AND TO A NEW SCHOOL FOR MEDIA STUDIES AT THE UNIVERSITY THE ARCHIVES WITH THEIR RICH COLLECTION OF UNDERGROUND PUBLICATIONS FROM THE COMMUNIST ERA WOULD BECOME A VITAL RESOURCE FOR SCHOLARS ALTHOUGH THE BROADCASTER PLAYED A CRUCIAL ROLE DURING THE COLD WAR MANY PEOPLE NOW REGARD ITS OPERATIONS AS AN EXPENSIVE ANACHRONISM LAST YEAR PRESIDENT CLINTON WANTED TO AX THE BROADCASTER'S BUDGET BUT PROTESTS FROM EASTERN EUROPE AND CONCERN IN CONGRESS STOPPED THE MOVE THOUGH RADIO FREE EUROPE/RADIO LIBERTY WAS SAVED ITS BUDGET IS TO BE SLASHED TO 75 MILLION FOR FISCAL 1996 FROM THE CURRENT 208 MILLION IT ALSO WAS MANDATED TO SAVE MORE MONEY WHICH LED TO THE CURRENT PROPOSAL TO SPIN OFF AND PRIVATIZE THE INSTITUTE WE CONSIDER THE SOROS PROPOSAL AN EXCITING SOLUTION THAT HELPS US CONTINUE THE WORK OF THIS PRESTIGIOUS ENTITY SAID ROSS JOHNSON INTERIM PRESIDENT OF RADIO FREE EUROPE/RADIO LIBERTY IT ALSO FITS WELL WITH THE ACTIVITIES OF THE SOROS FOUNDATIONS BESIDES RUNNING HIS SUCCESSFUL HEDGE FUND CALLED SOROS FUND MANAGEMENT THE HUNGARIANBORN MR SOROS HAS BEEN PUTTING MILLIONS OF DOLLARS INTO 22 FOUNDATIONS IN EASTERN EUROPE AND SOUTH AFRICA TO SUPPORT CULTURAL HEALTH EDUCATION MEDIA AND OTHER PROJECTS 9402100158 940210 HAROLD'S STORES INC SALES NORMAN OKLA HAROLD'S STORES INC SAID SALES FOR ITS FISCAL YEAR ENDED JAN 29 INCREASED 237 TO 609 MILLION FROM 493 MILLION A YEAR EARLIER THE MEN'S AND LADIES' APPAREL RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE ROSE 74 TO 495 MILLION FROM 461 MILLION THE PREVIOUS YEAR THE COMPANY SAID CATALOG SALES LEAPT 686 TO 54 MILLION FROM 32 MILLION 9402100157 940210 INTERNATIONAL METALLGESELLSCHAFT CREDIT FACILITY NEW YORK METALLGESELLSCHAFT CORP A UNIT OF METALLGESELLSCHAFT AG HAS ARRANGED FOR UP TO 300 MILLION OF NEW LIQUIDITY TO BE PROVIDED BY ITS CREDITOR BANKS UNDER A NEW SECURED CREDIT FACILITY THE COMPANY SAID IN A STATEMENT THAT IN CONJUNCTION WITH THE NEW FACILITY IT AGREED WITH MOST OF ITS BANKS TO A 90DAY STANDSTILL PERIOD DURING WHICH IT WILL SEEK TO RESTRUCTURE ITS OUTSTANDING CREDIT FACILITIES 9402100156 940210 GM'S NONAUTO UNITS HAD 25 DECLINE IN COMBINED EARNINGS FOR 4TH QUARTER BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S THREE NONAUTOMOTIVE UNITS POSTED A COMBINED 25 DECLINE IN FOURTHQUARTER NET INCOME REFLECTING LOWER PROFIT BY THE HUGE FINANCE SUBSIDIARY TOGETHER GM'S FINANCE DEFENSE AND COMPUTERSERVICES UNITS HAD NET INCOME IN THE FOURTH QUARTER OF 6552 MILLION DOWN FROM THE YEAREARLIER 6718 MILLION GM IS TO REPORT COMPANYWIDE FOURTHQUARTER FINANCIAL RESULTS TODAY SECURITIES ANALYSTS EXPECT THE NO 1 AUTO MAKER TO POST A FOURTHQUARTER PROFIT SOMEWHERE BETWEEN 865 MILLION AND 970 MILLION OR 115 AND 131 A SHARE THAT WOULD COMPARE WITH A YEAREARLIER NET LOSS OF 6518 MILLION WE THINK IT WAS A FABULOUS QUARTER SAYS JOHN CASESA OF WERTHEIM SCHRODER WHOSE ESTIMATE IS ON THE HIGH END OF THE RANGE GENERAL MOTORS ACCEPTANCE CORP THE FINANCE UNIT SAID FOURTHQUARTER NET INCOME DECLINED 29 TO 207 MILLION FROM THE YEAREARLIER 290 MILLION THAT REFLECTED REDUCED ASSET LEVELS AND NARROWER INTERESTRATE MARGINS IN NORTH AMERICA WHICH WAS PARTLY OFFSET BY STRONG INTERNATIONAL RESULTS GMAC SAID THE FINANCE UNIT WAS HOBBLED BY THE DOWNGRADING IN LATE 1992 OF THE PARENT COMPANY'S CREDIT RATING WHICH FORCED IT TO PULL IN ITS HORNS AND SHRINK THE ASSET BASE FOR A TIME BUT GMAC MAINTAINED THAT ITS RESULTS FOR 1993 REACHED THE HIGH END OF OUR FORECAST LEVELS FOR ALL OF 1993 GMAC REPORTED NET INCOME OF 981 MILLION COMPARED WITH 1992 EARNINGS OF 936 MILLION EXCLUDING THE EFFECTS OF AN ACCOUNTINGCHANGE CHARGE THE 1992 OPERATING NET WAS 122 BILLION GMAC SAID IT PAID 125 BILLION IN DIVIDENDS TO THE PARENT COMPANY FOR 1993 COMPARED WITH 11 BILLION FOR 1992 ELECTRONIC DATA SYSTEMS CORP GM'S COMPUTERSERVICES UNIT SAID FOURTHQUARTER NET INCOME ROSE 14 TO 2029 MILLION OR 42 CENTS A SHARE FROM THE YEAREARLIER 178 MILLION OR 37 CENTS A SHARE LES ALBERTHAL THE EDS CHAIRMAN ATTRIBUTED THE GAINS TO A 14 INCREASE IN NONGM BUSINESS DURING THE FOURTH QUARTER FOURTHQUARTER REVENUE ROSE 8 TO 231 BILLION FOR ALL OF 1993 EDS SAID NET INCOME HIT A RECORD 724 MILLION OR 151 A SHARE ON RECORD REVENUE OF 856 BILLION THAT REPRESENTS A 14 EARNINGS GAIN FROM 1992'S NET OF 6355 MILLION OR 133 A SHARE ON REVENUE OF 822 BILLION EDS SAID IT LINED UP 703 BILLION IN NEW CONTRACTS DURING THE YEAR GM'S BOARD EARLIER THIS WEEK BOOSTED THE DIVIDEND ON GM CLASS E SHARES WHICH REPRESENT AN INTEREST IN EDS EARNINGS TO 12 CENTS QUARTERLY FROM 10 CENTS CLASS E STOCK EDGED DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CLOSING AT 31875 A SHARE GM HUGHES ELECTRONICS CORP THE DEFENSE AND ELECTRONICS UNIT REPORTED THAT FOURTHQUARTER NET INCOME ROSE 20 TO 2453 MILLION OR 69 CENTS A SHARE FROM THE YEAREARLIER 2038 MILLION OR 59 CENTS A SHARE RESULTS FOR THE MOSTRECENT QUARTER INCLUDE A 32 MILLION CHARGE ON THE SALE OF A UNIT AND RESULTS FOR BOTH PERIODS INCLUDE A 31 MILLION CHARGE RELATED TO GM PURCHASE ACCOUNTING ADJUSTMENTS REVENUE IN THE FOURTH QUARTER ROSE 68 TO 370 BILLION GM HUGHES SAID THE INCREASE IN FOURTHQUARTER EARNINGS LARGELY REFLECTED HIGHER SALES OF AUTOMOTIVE ELECTRONICS TO GM AND TO NONGM CUSTOMERS THE COMPANY OBSERVED THAT THE ELECTRONICS CONTENT ROSE 88 TO 853 PER GM NORTH AMERICAN VEHICLE AND THAT GM'S NORTH AMERICAN VEHICLE PRODUCTION ROSE 15 IN THE QUARTER COMPARED WITH A YEAR EARLIER FOR ALL OF 1993 GM HUGHES NET INCOME WAS 7978 MILLION OR 230 A SHARE ON REVENUE OF 1351 BILLION THE 1993 EARNINGS INCLUDE A 522 MILLION AFTERTAX GAIN ON THE SALE OF A 30 INTEREST IN JAPAN COMMUNICATIONS SATELLITE CO THE 32 MILLION CHARGE ON THE SALE OF A UNIT AND 1238 MILLION CHARGE RELATED TO PURCHASEACCOUNTING ADJUSTMENTS THAT COMPARES WITH A 1992 NET LOSS OF 105 BILLION OR 229 A SHARE ON REVENUE OF 1230 BILLION THE 1992 LOSS INCLUDES A SPECIAL RESTRUCTURING CHARGE OF 7494 MILLION AN ACCOUNTINGCHANGE CHARGE OF 8321 MILLION AND A 1238 MILLION PURCHASEACCOUNTING ADJUSTMENT CHARGE GM CLASS H SHARES WHICH REPRESENT A DIVIDEND INTEREST IN GM HUGHES EARNINGS CLOSED UP 25 CENTS AT 3775 IN BIG BOARD COMPOSITE TRADING YESTERDAY THE GM BOARD EARLIER THIS WEEK RAISED THE DIVIDEND ON CLASS H SHARES TO 20 CENTS QUARTERLY FROM 18 CENTS 9402100155 940210 US SUSPENDS TALKS ON TRADE WITH JAPAN KANTOR MOVE BEFORE SUMMIT SIGNALS WHITE HOUSE IRE AT PACE OF DISCUSSIONS BY WALL STREET JOURNAL REPORTERS BOB DAVIS IN WASHINGTON AND JACOB M SCHLESINGER IN TOKYO ON THE EVE OF A TRADE SUMMIT BETWEEN THE LEADERS OF THE US AND JAPAN US TRADE REPRESENTATIVE MICKEY KANTOR SUSPENDED NEGOTIATIONS ON A RANGE OF BILATERAL TRADE ISSUES MR KANTOR'S MOVE WAS CLEARLY MEANT TO SIGNAL THE US'S DISPLEASURE AT THE PACE OF THE TALKS AND TO PUT MAXIMUM PRESSURE ON TOKYO TO MAKE CONCESSIONS THE DOLLAR RETREATED AGAINST THE YEN ON FEARS THAT A USJAPAN TRADE ACCORD WON'T BE REACHED IN TIME FOR THE SUMMIT EVEN BEFORE MR KANTOR'S MOVE JAPAN DISPATCHED FOREIGN MINISTER TSUTOMU HATA TO THE US YESTERDAY A DAY AHEAD OF SCHEDULE TO TRY TO PATCH THINGS UP YET UPON ARRIVING IN WASHINGTON LAST NIGHT MR HATA TOLD REPORTERS HE HAD NO NEW PLANS TO OFFER MEANTIME MR KANTOR SAID IN A NEWS BRIEFING EARLIER IN THE DAY THAT WE ARE STUCK AT DEAD CENTER STILL BILATERAL TALKS HAVEN'T BROKEN DOWN COMPLETELY WHILE THE NEGOTIATIONS BETWEEN BUREAUCRATS HAVE BEEN FROZEN MR HATA IS EXPECTED TO MEET WITH TOP US OFFICIALS TODAY MR KANTOR SAID HE STILL EXPECTED THE TWO SIDES TO REACH AN AGREEMENT IN THE SOCALLED FRAMEWORK TRADE TALKS TOMORROW THAT'S WHEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON ARE SCHEDULED TO MEET IN WASHINGTON FOR ABOUT 2 1/2 HOURS AND FINALIZE A TRADE ACCORD COVERING AUTOS AUTO PARTS INSURANCE MEDICAL EQUIPMENT AND TELECOMMUNICATIONS THE TWO SIDES REMAIN DEADLOCKED OVER THE US INSISTENCE THAT JAPAN AGREE TO NUMERICAL TARGETS TO INCREASE ITS IMPORTS THE US HAS DRAWN DEMANDS THAT WOULD IN ESSENCE COMMIT JAPAN TO DOUBLE ITS IMPORTS OF MANUFACTURED GOODS JAPAN SAYS IT REJECTS THOSE EFFORTS BECAUSE IT WOULD REQUIRE TIGHTER GOVERNMENT CONTROL OVER DOMESTIC INDUSTRIES AT A TIME WHEN JAPAN WANTS TO DEREGULATE THE DISPUTE OVER NUMERICAL GOALS HAS BEEN AT THE CORE OF THE TRADE FIGHT FOR EIGHT MONTHS BUT TUESDAY NIGHT AFTER ANOTHER DAY OF LENGTHY NEGOTIATIONS THE US TRADE TEAM HUDDLED AT THE TRADE REPRESENTATIVE'S OFFICE AND DECIDED THAT THE TALKS WERE GOING NOWHERE AND NEEDED A JOLT US OFFICIALS SAID THAT MR KANTOR PRESSED THE GROUP TO CALL OFF TALKS SCHEDULED FOR YESTERDAY WITH SENIOR BUREAUCRATS AFTER SOME RESISTANCE THE GROUP AGREED BOWMAN CUTTER A WHITE HOUSE ECONOMIC OFFICIAL WHO IS LEADING THE US NEGOTIATING TEAM TELEPHONED HIS COUNTERPART KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER AT ABOUT 930 PM EST TO CANCEL YESTERDAY'S NEGOTIATIONS JAPANESE NEGOTIATORS SEEMED STUNNED BY THE NEWS AND SPENT YESTERDAY WAITING FOR A CALL WHICH DIDN'T COME TO RESUME TALKS IT'S RATHER DIFFICULT TO UNDERSTAND WHY THE US TEAM DOESN'T TRY TO TAKE A BROADER VIEW OF THE HOSOKAWA GOVERNMENT'S POSITION SAID A JAPANESE NEGOTIATOR HE CITED TOKYO'S RECENT DECISIONS TO OPEN ITS RICE MARKET AND CLEAN UP ITS CONSTRUCTION INDUSTRY US OFFICIALS SAID THEY DIDN'T THINK THEY WOULD KNOW UNTIL LATE TONIGHT AT THE EARLIEST WHETHER JAPAN WAS READY TO MOVE WE WILL WAIT UNTIL HELL FREEZES OVER FOR AN AGREEMENT WITH MEASUREMENTS SAID DEPUTY TREASURY SECRETARY ROGER ALTMAN THIS ENDLESS DEBATE OVER YES THERE'S PROGRESS IN JAPAN TRADE NO THERE ISN'T' HAS GOT TO END MR ALTMAN ALSO EXPRESSED THE ADMINISTRATION'S UNHAPPINESS WITH THE EXTENT OF JAPAN'S PROPOSED ONEYEAR TAX CUT HE CALLED THE PLAN THE EQUIVALENT OF REBATES WHICH WON'T DO MUCH TO SPUR CONSUMER SPENDING THE US WANTS JAPAN TO BROADLY STIMULATE ITS RECESSIONPLAGUED ECONOMY AND PUT IT IN THE POSITION TO INCREASE IMPORTS THE SUMMIT IS SHAPING UP AS A MAJOR TEST FOR BOTH PRIME MINISTER HOSOKAWA AND PRESIDENT CLINTON PARTICULARLY IF THE TWO SIDES CAN'T REACH AN AGREEMENT IF THE US GETS TOUGH HOSOKAWA SUPPORTERS SAY THAT WOULD UPSET JAPAN'S FRAGILE REFORM MOVEMENT A MOVEMENT THEY INSIST THAT WILL BENEFIT THE US IN THE LONG RUN BY MAKING THE JAPANESE GOVERNMENT AND ECONOMY MORE TRANSPARENT IF MR CLINTON GOES EASY TRADE HAWKS SAY THE US WILL AGAIN BE DUPED BY THE ILLUSION OF CHANGE IN AN INHERENTLY CLOSED JAPANESE SYSTEM YOSHI TSURUMI A PROFESSOR OF INTERNATIONAL BUSINESS AT BARUCH COLLEGE IN NEW YORK COMPARED MR HOSOKAWA TO BORIS YELTSIN AND WARNED THAT TOO MUCH AMERICAN GRIPING COULD HURT THIS VERY DIFFICULT PROCESS OF CHANGE JAPANESE OFFICIALS ALSO WORRY THAT A TRADE FRACAS COULD UNDERMINE BROADER COOPERATION BETWEEN THE TWO COUNTRIES AT A CRITICAL TIME IT WOULD BE VERY UNFORTUNATE IF BILATERAL RELATIONS GO WRONG SOLELY BECAUSE OF NUMERICAL TARGETS FOR AUTOS INSURANCE AND GOVERNMENT PROCUREMENT YUKIO HATOYAMA ONE OF MR HOSOKAWA'S TOP AIDES SAID IN AN INTERVIEW YESTERDAY IF THE SUMMIT IS CONSIDERED A FAILURE HE WARNED THE DAMAGE WILL BE VERY BIG US BUSINESS EXECUTIVES HOWEVER ARE GROWING TIRED OF THIS PLEA I QUESTION WHETHER THE US SHOULD PLACE ITS HOPES IN ONE POLITICIAN IN A FELLOW DEMOCRACY INSTEAD OF MAKING LONGRANGE ECONOMIC PLANS INDEPENDENT OF PERSONALITIES SAID JOHN STERN HEAD OF THE TOKYO OFFICE OF THE AMERICAN ELECTRONICS ASSOCIATION IN WASHINGTON THE ECONOMIC STRATEGY INSTITUTE A THINK TANK THAT TAKES A HARD LINE TOWARD JAPAN PUT TOGETHER A LETTER SIGNED BY 50 BUSINESS OFFICIALS AND TRADE GROUPS BACKING THE CLINTON APPROACH OF DEMANDING QUANTIFIABLE RESULTS IN TRADE TALKS WITH JAPAN SHOULD THE TALKS FALL APART JAPANESE NEGOTIATORS ARE READY TO BLAME US INTRANSIGENCE A JAPANESE OFFICIAL IN WASHINGTON SAID THAT THE TWO SIDES ARE VERY CLOSE TO AN END TO THESE NEGOTIATIONS BECAUSE JAPAN HAS ANNOUNCED A FISCAL STIMULUS PACKAGE AND HAS AGREED TO MAKE PROCEDURAL CHANGES IN ITS GOVERNMENT PROCUREMENT THE ONLY THING THAT ISN'T AGREED TO IS NUMERICAL TARGETS THE OFFICIAL SAIDWHICH THE US CONSIDERS THE NUB OF THE CONTROVERSY THIS PAST WEEK WHEN MESSRS KANTOR AND CUTTER WERE IN TOKYO THE JAPANESE OFFICIAL SAID THEY WERE CLEARLY TOLD THAT JAPAN WOULDN'T BACK DOWN OVER THE ISSUE OF NUMERICAL GOALS BUT MR KANTOR HEARD THINGS DIFFERENTLY REPORTING THAT FOREIGN MINISTER HATA WAS SILENT ON THAT ISSUE BUT US OFFICIALS DON'T KNOW WHETHER THAT MEANS MR HATA WAS SIGNALING AN OPENING OR SIMPLY TRYING TO GET AWAY FROM THE TWO AMERICANS WITHOUT AN ARGUMENT 9402100154 940210 ORBITAL SCIENCES MARKETING PACT DULLES VA ORBITAL COMMUNICATIONS CORP REACHED AN AGREEMENT WITH IDB MOBILE COMMUNICATIONS INC TO RESELL ORBITAL'S ORBCOMM GLOBAL SATELLITE SERVICES TO MARINE INDUSTRIES IDB MOBILE IS A JOINT VENTURE OF IDM COMMUNICATIONS GROUP INC AND TELEGLOBE INTERNATIONAL INC OF CANADA IN A NEWS RELEASE THE COMPANY SAID IDB MOBILE OFFERS MOBILE SATELLITE SERVICES TO COMMERCIAL AND PRIVATE MARITIME AVIATION AND LAND MOBILE CUSTOMERS WORLDWIDE ORBITAL SAID IDB MOBILE WILL MARKET THE ORBCOMM SERVICES TO ITS MORE THAN 5000 MARITIMECOMMUNICATIONS CUSTOMERS FOR SHIPPING FISHING FLEETS OIL RIGS AND TANKERS ORBITAL COMMUNICATIONS IS A UNIT OF ORBITAL SCIENCES CORP 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 9402100152 940210 THE CLINTON TWO VS THE KEATING FIVE BY DAVID I THOMPSON AS ONE WHO LIVED THROUGH THE MYRIAD INVESTIGATIONS LAUNCHED AS A RESULT OF THE FAILURE OF CHARLES KEATING'S LINCOLN SAVINGS IN 1989 I HAVE MORE THAN A PASSING INTEREST IN THE ALLEGATIONS SURROUNDING THE CLINTONS' INVOLVEMENT WITH WHITEWATER DEVELOPMENT CORP AND MADISON GUARANTY SAVINGS & LOAN THE CLINTONS AND THEIR DEFENDERS REPEATEDLY ARGUE THAT BECAUSE THE CLINTONS ALLEGEDLY SUFFERED A LOSS ON THEIR INVESTMENT IN WHITEWATER THEY COULD NOT HAVE ENGAGED IN ANY WRONGDOING YET EVEN IF THE CLINTONS DID LOSE MONEY ON THE SPECIFIC WHITEWATER INVESTMENT THE RELATIONSHIP THEY DEVELOPED WITH THEIR BUSINESS PARTNER AND MADISON OWNER JIM MCDOUGAL PROFITED THEM HANDSOMELY IN TERMS OF CAMPAIGN CONTRIBUTIONS HANDSHAKE LOANS AND ACCESS TO POWERFUL PEOPLE MORE IMPORTANT THE COZY RELATIONSHIP BETWEEN THE CLINTONS AND MADISON MAY HAVE KEPT MADISON ALIVE LONGER THAN IT SHOULD HAVE MAGNIFYING THE BILL TO THE TAXPAYERS INDEED MANY OF THE ISSUES THAT APPEAR RELEVANT TO MADISON AND WHITEWATER ARE IDENTICAL TO THOSE SCRUTINIZED SO EXHAUSTIVELY WITH RESPECT TO LINCOLN HERE ARE A FEW COMPARISONS THAT MERIT SCRUTINY BY THE SPECIAL COUNSEL APPOINTED BY JANET RENO TO INVESTIGATE THE CASE UNFAIR INFLUENCE CHARLIE KEATING WAS PILLORIED FOR HIS GENEROUS DONATIONS TO POLITICIANS INCLUDING THE KEATING FIVE IN THE SENATE WHO WENT TO BAT FOR HIM IN DEALING WITH ZEALOUS REGULATORS WITHOUT DIMINISHING THE SIGNIFICANCE OF THE POLITICAL PRESSURE THOSE SENATORS COULD IMPOSE UPON THE REGULATORS ULTIMATELY IT WAS ONLY PRESSURE THEY COULD BRING THE KEATING FIVE HAD NO DIRECT CONTROL OVER LINCOLN'S SUPERVISION AND THE REGULATORS EVENTUALLY TRIUMPHED OVER BOTH LINCOLN AND THE SENATORS RUINING A FEW CAREERS IN THE PROCESS IN CONTRAST BILL CLINTON AS GOVERNOR HAD THE POWER TO HIRE AND FIRE THE ARKANSAS SECURITIES COMMISSIONER RESPONSIBLE FOR SUPERVISING ALL STATECHARTERED THRIFTS IN 1985 SHORTLY AFTER MADISON HAD RECEIVED A NEGATIVE REGULATORY AUDIT NOTING ITS UNSAFE AND UNSOUND PRACTICES AND SHORTLY AFTER MR MCDOUGAL RAISED 35000 TO KNOCK OUT A PERSONAL DEBT BILL AND HILLARY CLINTON OWED FROM THE LATEST GUBERNATORIAL RACE MR CLINTON FIRED THE SITTING COMMISSIONER AND REPLACED HIM WITH A LONGTIME FRIEND AND POLITICAL SUPPORTER THUS MR CLINTON HAD LIFEANDDEATH POWER OVER THE BUREAUCRAT WITH LIFEANDDEATH POWER OVER MADISON NEVER MIND THE CLINTONS' SMALL INVESTMENT WITH WHITEWATER MR MCDOUGAL HAD JUST PROVED HIS USEFULNESS TO MR CLINTON IN OTHER WAYS HOW USEFUL WOULD HE BE IF HIS S&L WERE TAKEN OVER THE CLINTONS AT THE VERY LEAST HAD AN INCENTIVE TO PROVIDE AS SYMPATHETIC AN EAR AS POSSIBLE TO MR MCDOUGAL AND MADISON AND THEY SEEM TO HAVE DONE IT CRONYISM ANOTHER OF MR KEATING'S ACTIONS THAT OUTRAGED THE PUBLIC WAS THE HIRING ON A MONTHLY RETAINER OF A CALIFORNIA LAW FIRM WHOSE SENIOR PARTNER WAS ONE OF GOV GEORGE DEUKMEJIAN'S CLOSEST POLITICAL ADVISERS THIS FIRM REPRESENTED MR KEATING'S INTERESTS BEFORE THE CALIFORNIA SECURITIES COMMISSION HEADED BY A LAWYER FORMERLY EMPLOYED BY THE SAME FIRM AFTER LINCOLN WAS SEIZED THE FIRM AND ITS LAWYERS WERE ACCUSED OF USING THEIR CONNECTIONS WITH THE DEUKMEJIAN ADMINISTRATION TO PROP UP A TOTTERING INSTITUTION THEY ALONG WITH OTHER KEATING LAWYERS WERE SUED AND ULTIMATELY SETTLED FOR SEVERAL MILLION DOLLARS MR MCDOUGAL WENT MR KEATING ONE BETTER TAKING A BELTANDSUSPENDERS APPROACH TO THE STATE REGULATORY PROCESS NOT CONTENT WITH THE KNOWLEDGE THAT A FRIEND OF BILL'S WAS NOW THE SECURITIES COMMISSIONER HE WENT TO HILLARY RODHAM CLINTON FOR HIS LEGAL REPRESENTATION PLACING HER ON A MONTHLY RETAINER MRS CLINTON'S ASSIGNMENT WAS TO REPRESENT MADISON BEFORE THE ARKANSAS SECURITIES COMMISSIONER AFTER THE FEDERAL DEPOSIT INSURANCE CORP ISSUED ITS REPORT OF MADISON'S UNSAFE AND UNSOUND PRACTICES MRS CLINTON'S LOBBYING APPARENTLY SUCCEEDED ARMED WITH AN INDEPENDENT AUDIT SHE PERSUADED HER FRIEND THE STATE REGULATOR TO KEEP MADISON OPEN DURING THE NEXT YEAR MADISON MORE THAN DOUBLED IN SIZE AND LEFT A BIGGER CRATER FOR THE TAXPAYERS TO FILL WHEN IT WAS FINALLY SEIZED MISLEADING THE REGULATORS ONE OF CHARLIE KEATING'S BIGGEST SINS WAS ALLEGEDLY MISLEADING THE REGULATORS BY FILESTUFFING CREATING DOCUMENTS THAT ALTHOUGH CREATED AFTER THE FACT WERE WRITTEN IN THE PRESENT TENSE TO LEAVE THE IMPRESSION THAT LOAN AND REALESTATE UNDERWRITING WAS THOROUGH AND COMPLETE AT THE TIME A PARTICULAR TRANSACTION WAS ENTERED INTO IN THE KEATING CASE SUCH CONDUCT INVOLVED CRIMINAL PENALTIES SINCE MAKING FALSE ENTRIES AND MISLEADING THE REGULATORS ARE STRICTLY FORBIDDEN YET HILLARY RODHAM CLINTON'S LAW FIRM WHICH HAD REPRESENTED MADISON FOR SEVERAL YEARS BEFORE IT FAILED FLAGRANTLY MISLED THE FDIC AFTER THE AGENCY SEIZED MADISON IN 1986 THE FDIC ELECTED TO SUE THE ACCOUNTING FIRM THAT HAD PRONOUNCED MADISON HEALTHY AND WHOSE REPORT MRS CLINTON HAD VOUCHED FOR IN ARGUING FOR MADISON'S CONTINUED EXISTENCE THE FDIC LAWSUIT AGAINST THE ACCOUNTANTS SHOULD HAVE BEEN A BIG DEAL MADISON'S FAILURE COST 60 MILLION AGAINST REPORTED TOTAL ASSETS OF 120 MILLION MEANING THAT 50 CENTS OF EVERY DOLLAR HELD BY MADISON AND ALLEGEDLY EXAMINED BY THE AUDITORS WAS PHONY AS WITH LINCOLN'S ACCOUNTANTS MADISON'S ACCOUNTING FIRM REPRESENTED A DEEP POCKET WITH WHICH TO COVER SOME OF THE LOSSES TO THE TAXPAYERS AMAZINGLY MRS CLINTON'S LAW FIRM BID FOR AND WAS AWARDED THE REPRESENTATION TO SUE THE ACCOUNTING FIRM HOW COULD A LAW FIRM THAT ONLY A YEAR EARLIER HAD USED THE ACCOUNTANTS' REPORT TO HELP KEEP MADISON ALIVE NOW SUE THE ACCOUNTANTS FOR THE REPORT NORMALLY IN THE S&L CARNAGE THAT RESULTED FROM DEREGULATION AND THEN REREGULATION LEGAL COUNSEL TO INSTITUTIONS THAT FAILED AS SPECTACULARLY AS MADISON AT LEAST EQUAL ON A PERCENTAGEOFASSETS BASIS TO LINCOLN'S FAILURE EXPECTED TO FIND THEMSELVES ON THE RECEIVING END OF MAJOR LITIGATION ALMOST AS A MATTER OF COURSE MRS CLINTON'S LAW FIRM IN FACT WAS AN INSTITUTIONAFFILIATED PARTY AS DEFINED IN SECTION 901 OF FIRREA AND THUS ITS OWN DEALINGS WITH MADISON SHOULD HAVE BEEN SCRUTINIZED CLOSELY MRS CLINTON'S LAW FIRM ESCAPED SUCH A FATE THE OLDFASHIONED WAY APPARENTLY FLAGRANTLY MISREPRESENTING PRIOR TIES TO MADISON LATE WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER MRS CLINTON'S PARTNER AT THE LAW FIRM WROTE TO THE FDIC IN AN EFFORT TO GET THE REPRESENTATION AGAINST THE ACCOUNTING FIRM STATING IN PERTINENT PART THE FIRM DOES NOT REPRESENT ANY SAVINGSANDLOAN ASSOCIATION IN STATE OR FEDERAL REGULATORY MATTERS THE PRESENT TENSE CHOSEN BY MR FOSTER MAKES THE STATEMENT LITERALLY ACCURATE BUT ANY FIRSTYEAR LAW STUDENT KNOWS THAT FRAUD CAN ARISE WHEN ONE OMITS MATERIAL FACTS NECESSARY TO MAKE A STATEMENT NOT MISLEADING IE THAT THE LAW FIRM HAD REPRESENTED MADISON IN THE EXTREMELY RECENT PAST LINCOLN'S LAWYERS GOT SUED FOR HUNDREDS OF MILLIONS OF DOLLARS MADISON'S LAWYERS NOT ONLY GOT OFF SCOTFREE BUT ALSO COLLECTED A 400000 FEE FOR SUING THE ACCOUNTANTS AND WINNING A PALTRY 1 MILLION SETTLEMENT MOREOVER IF IT CAN BE ESTABLISHED THAT WHITEWATER OR ITS PARTNERS RECEIVED ONE DOLLAR OF BENEFIT FROM MADISON INDIRECTLY OR DIRECTLY DIVERTED ANY BUSINESS OPPORTUNITY RIGHTFULLY BELONGING TO MADISON OR OTHERWISE PROFITED AT MADISON'S EXPENSE THEN A WHOLE NEW AREA OF INVESTIGATION OPENS WIDE WITH POSSIBLE PROHIBITED AFFILIATE TRANSACTIONS OF THE KIND THAT WERE FATAL TO MR KEATING IT MUST BE NOTED THAT THE CONTRIBUTIONS TO THE KEATING FIVE THE COZY RELATIONSHIPS WITH STATE SUPERVISORS THE EMPLOYING OF INFLUENTIAL LAW FIRMS AND SO ON DID NOT DIRECTLY CONVICT CHARLES KEATING BUT THOSE THINGS DID FOCUS SUCH WIDESPREAD ATTENTION ON LINCOLN AND ITS OPERATIONS THAT THE FULL POWER AND WRATH OF THE US GOVERNMENT EVENTUALLY CAME DOWN ON MR KEATING'S HEAD IT WOULD SEEM ONLY LOGICAL THAT WHEN THE SAME OR MORE EXTREME INDICATORS OF QUESTIONABLE CONDUCT ARE PRESENT IN A CASE INVOLVING THE HIGHEST ELECTED OFFICIAL IN THE COUNTRY THE SAME STANDARDS OF SCRUTINY BE APPLIED LET'S BE FAIR APPLYING THE LINCOLN TEST TO MADISON WILL SHOW THAT WE DO HAVE A GOVERNMENT OF LAWS NOT MEN MR THOMPSON IS A CINCINNATI ATTORNEY WHO WAS A VICE PRESIDENT AND CORPORATE COUNSEL FOR LINCOLN SAVINGS FROM 1985 TO 1989 9402100151 940210 AETNA'S NET LOSS FOR FOURTH QUARTER WIDENED DUE TO RESTRUCTURING CHARGES HARTFORD CONN AETNA LIFE & CASUALTY CO REPORTED ITS FOURTHQUARTER LOSS WIDENED CONSIDERABLY BECAUSE OF PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGES OF 128 BILLION THE INSURANCE COMPANY SAID ITS NET LOSS IN THE QUARTER WIDENED TO 113 BILLION OR 1010 A SHARE FROM 1919 MILLION OR 174 A SHARE A YEAR AGO LAST MONTH THE COMPANY SAID IT WOULD TAKE 128 BILLION OF CHARGES TO DISCONTINUE PART OF ITS PENSION BUSINESS ELIMINATE 4000 JOBS OR NEARLY 10 OF ITS WORK FORCE AND ADD TO WORKERS' COMPENSATION RESERVES FOLLOWING THE EARNINGS ANNOUNCEMENT STANDARD & POOR'S CORP SAID IT LOWERED THE CLAIMSPAYING ABILITY RATING OF THE COMPANY'S AETNA LIFE INSURANCE CO TO SINGLEAPLUS FROM DOUBLEAMINUS CITING THE LARGE CHARGE THE RATING AGENCY AFFIRMED ALL AETNA'S OTHER RATINGS ALTHOUGH IT REVISED THE OUTLOOK ON THE SENIOR DEBT RATING TO NEGATIVE FROM STABLE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AETNA CLOSED AT 63 UP 125 FOR THE FULL YEAR AETNA SWUNG TO A LOSS OF 3659 MILLION OR 329 A SHARE FROM NET INCOME OF 56 MILLION OR 51 CENTS A SHARE A YEAR EARLIER WITHOUT THE CHARGES THE COMPANY SAID OPERATING EARNINGS FOR THE YEAR WOULD HAVE BEEN 610 MILLION OR 549 A SHARE HELPED BY A 7 REDUCTION IN OPERATING EXPENSES AND IMPROVED UNDERWRITING AND LOWER CATASTROPHE LOSSES IN THE PROPERTY/CASUALTY BUSINESS IN 1992 AETNA HAD OPERATING PROFIT OF 192 MILLION OR 174 A SHARE AETNA MADE GOOD PROGRESS TO IMPROVE OPERATING PERFORMANCE IN OUR BUSINESSES SAID RONALD E COMPTON CHAIRMAN HE SAID THE COMPANY'S AGGRESSIVE ACTION TO REDUCE THE DRAG ON EARNINGS FROM PAST BUSINESS DECISIONS AND TO CONTROL COSTS AND REDUCE THE SIZE OF ITS REALESTATE PORTFOLIO POSITIONS US WELL TO ENHANCE FUTURE RETURNS TO SHAREHOLDERS AS FOR THE S&P DOWNGRADE AETNA SAID IT STRONGLY DISAGREES WITH S&P'S DECISION S&P HAS NO BASIS FOR THIS ACTION SAID PATRICK W KENNY AETNA'S CHIEF FINANCIAL OFFICER HE SAID THAT AETNA LIFE IS AN EVEN STRONGER COMPANY THAN IT WAS A YEAR AGO WITH IMPROVING STATUTORY OPERATING RATIOS AND ENORMOUS EARNINGS POTENTIAL 9402100150 940210 AT&T VENTURE IN VENEZUELA NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT FORMED A JOINT VENTURE TO SUPPLY TELECOMMUNICATION PRODUCTS IN VENEZUELA AT&T SAID IT OWNS 51 OF THE JOINT VENTURE WITH THE REMAINING INTEREST OWNED BY ELECTROCONDUCTORES CA A VENEZUELAN PRODUCER OF TELECOMMUNICATIONS AND POWER CABLES A SPOKESWOMAN SAID AT&T IS INVESTING 8 MILLION TO 12 MILLION IN THE 20 MILLION VENTURE WHICH IS CALLED AT&T ELECON TELESISTEMAS CA 9402100149 940210 WHAT'S NEWS WORLDWIDE NATO ORDERED SERBS TO HALT THEIR SHELLING OF SARAJEVO OR FACE AIR STRIKES THE ULTIMATUM GIVES THE BOSNIAN SERBS 10 DAYS TO EITHER WITHDRAW THEIR ARTILLERY MORTARS AND TANKS 12 MILES BEYOND THE CENTER OF SARAJEVO OR PLACE THOSE WEAPONS UNDER UN CONTROL ANY SHELLING BEFORE THAT COULD FACE IMMEDIATE RETALIATION US OFFICIALS SAID AIR STRIKES COULD BE LAUNCHED AGAINST ARTILLERY EMPLACEMENTS ANTIAIRCRAFT WEAPONS AND MILITARY SUPPORT EQUIPMENT EVEN BEFORE THE NATO ULTIMATUM WAS ISSUED THE SERBS AGREED TO A CEASEFIRE IN SARAJEVO AND TOLD THE UN COMMANDER THERE THAT THEY WOULD WITHDRAW THEIR WEAPONS PRESIDENT CLINTON WHO HAD BEEN LOBBYING HARD FOR THE ULTIMATUM WITH WESTERN ALLIES EMPHASIZED THAT NO ONE SHOULD DOUBT NATO'S RESOLVE NATO IS NOW SET TO ACT ISRAEL AND THE PLO REACHED AN ACCORD ON THE GAZA STRIP AND JERICHO PLO LEADER ARAFAT AND ISRAEL'S FOREIGN MINISTER PERES SAID IN CAIRO THAT THEY HAD AGREED ON SOME CRITICAL SECURITY ISSUES THAT HAVE STALLED AN ISRAELIPLO PEACE ACCORD PERES SAID HE AND ARAFAT SETTLED FIVE OR SIX OF THE MOST COMPLICATED ISSUES INVOLVED IN TURNING OVER CONTROL OF THE OCCUPIED GAZA STRIP AND WEST BANK TOWN OF JERICHO TO THE PALESTINIANS BUT PERES ADDED WE DIDN'T COMPLETE OUR WORK THE FINAL ACCORD IS TO BE NEGOTIATED BETWEEN ARAFAT AND ISRAELI PRIME MINISTER RABIN ONE UNRESOLVED ISSUE IS HOW MUCH LAND AROUND JERICHO WILL BE CEDED TO THE PALESTINIANS A PANEL OF MEDICAL EXPERTS DECLARED THAT A BACTERIUM IS THE UNDERLYING CAUSE OF MOST PEPTIC ULCERS AND URGED DOCTORS TO BEGIN USING ANTIBIOTICS TO TREAT INFECTED PATIENTS THE RECOMMENDATIONS WOULD MARK A DRASTIC CHANGE IN ULCER TREATMENT NOW MOST PATIENTS ARE GIVEN DRUGS TO STOP PRODUCTION OF STOMACH ACID THE US RECOGNIZED THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA AFTER TWO YEARS OF SIDESTEPPING IN DEFERENCE TO GREECE DIPLOMATIC TIES WILL BE ESTABLISHED ONCE MACEDONIA PLEDGES TO TRY TO RESOLVE DIFFERENCES WITH GREECE ATHENS CONTENDS THAT REFERRING TO THE COUNTRY AS MACEDONIA IMPLIES IT HAS A CLAIM ON THE GREEK PROVINCE OF MACEDONIA TONYA HARDING SUED THE US OLYMPIC COMMITTEE FOR 20 MILLION TO BLOCK ANY ATTEMPT TO KEEP HER FROM SKATING IN THE WINTER OLYMPICS THE COMMITTEE HAS SET A HEARING FOR TUESDAY IN OSLO CONCERNING HARDING AND THE JAN 6 ATTACK ON A RIVAL SKATER NANCY KERRIGAN MANDELA SAID HIS AFRICAN NATIONAL CONGRESS WAS WILLING TO CONTINUE TALKS WITH WHITE RIGHTWING GROUPS CONCERNING APRIL'S ALLRACE ELECTIONS BUT HE AGAIN REJECTED A WHITE HOMELAND IN POSTAPARTHEID SOUTH AFRICA TALKS BETWEEN THE ANC THE GOVERNMENT AND THE RIGHTWINGERS BROKE DOWN ON TUESDAY CLINTON VISITED A PRISON IN SUBURBAN MARYLAND TO UNVEIL A FEDERAL ANTIDRUG STRATEGY THAT WILL FOCUS ON TREATMENT RATHER THAN INTERDICTION THE 132 BILLION PLAN FOR 1995 WHICH REPRESENTS A 1 BILLION INCREASE OVER THIS YEAR BOOSTS SPENDING FOR TREATMENT EDUCATION AND PREVENTION THE PROGRAMS WILL TARGET HARDCORE ABUSERS SMOKING SIGNIFICANTLY INCREASES A WOMAN'S RISK OF DEVELOPING THE BONETHINNING DISEASE OSTEOPOROSIS ACCORDING TO A STUDY BY DOCTORS IN AUSTRALIA THE RESEARCH CONFIRMS THE FINDINGS OF SEVERAL PRIOR STUDIES THAT HAVE LINKED SMOKING AND A POTENTIALLY DANGEROUS REDUCTION IN BONE DENSITY POLAND'S SOLIDARITY TRADE UNION STAGED ITS BIGGEST DEMONSTRATION IN FOUR YEARS PROTESTING THAT LIVING CONDITIONS WERE DETERIORATING AND THAT THE GOVERNMENT HAD FAILED TO IMPLEMENT SOCIAL WELFARE POLICIES OVER 20000 POLES MARCHED IN WARSAW TO DENOUNCE THE LEFTIST COALITION GOVERNMENT A SENATOR SUGGESTED THAT MYSTERIOUS ILLNESSES AFFLICTING HUNDREDS OF US GULF WAR VETERANS WERE CAUSED BY IRAQI USE OF BIOLOGICAL WEAPONS DEVELOPED FROM CULTURES SENT FROM THE US MICHIGAN DEMOCRAT RIEGLE SAID HE WAS DEEPLY TROUBLED THAT THE US HAD PERMITTED EXPORT OF THE BIOLOGICAL CULTURES FROM 1985 TO 1989 CHINA'S DENG APPEARED ON STATE TV FOR THE FIRST TIME IN OVER A YEAR ADVOCATING FASTER GROWTH FOR SHANGHAI THE PARAMOUNT LEADER 89 LOOKED FRAIL AS HE WAS SHOWN VISITING THE CITY 9402100148 940210 BUSINESS BRIEF GOODYEAR PROFIT ROSE 29 IN FOURTH PERIOD TIRE SALES IMPROVED AKRON OHIO GOODYEAR TIRE & RUBBER CO REPORTED A 29 JUMP IN FOURTHQUARTER PROFIT REFLECTING STRONGER OPERATING PERFORMANCE AND LOWER EXPENSES NET INCOME WAS 1132 MILLION OR 76 CENTS A SHARE COMPARED WITH 875 MILLION OR 61 CENTS A SHARE A YEAR EARLIER THE 1992 FIGURE INCLUDED A ONETIME LOSS OF 153 MILLION OR 11 CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT SALES WERE 292 BILLION COMPARED WITH 293 BILLION ALTHOUGH THE 1992 FIGURE INCLUDED ABOUT 87 MILLION OF SALES FROM DIVESTED ASSETS WORLDWIDE SALES IN 1993 WERE 1164 BILLION DOWN FROM 1178 BILLION EXCLUDING THE SALE OF DIVESTED ASSETS OVERALL SALES WOULD HAVE BEEN 1135 BILLION IN 1992 CONTINUED IMPROVEMENT IN OPERATING PERFORMANCE THE SALE OF ASSETS AND THE CONVERSION OF 117 MILLION OF EURO CONVERTIBLE DEBENTURES TO COMMON STOCK ENABLED THE COMPANY TO REDUCE ITS DEBT BY 525 MILLION TO 14 BILLION AT THE END OF 1993 GOODYEAR SAID IN THE TIRE BUSINESS FOURTHQUARTER SALES ROSE 26 TO 251 BILLION AND WERE UP 2 TO 996 BILLION FOR THE FULL YEAR OVERALL GOODYEAR'S SALES WERE FLAT IN THE US FOR BOTH PERIODS DUE TO THE SALE OF DIVESTED ASSETS AMONG REGIONS OPERATIONS IN ASIA POSTED LOWER SALES AND OPERATING PROFIT REFLECTING SLUGGISH ECONOMIES AND THE ADVERSE EFFECT OF EXCHANGE RATES WE EXPECT 1994 TO BE A BETTER YEAR FOR SALES GROWTH IF THE WORLD ECONOMIES IMPROVE GOODYEAR SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GOODYEAR WAS UP 625 CENTS AT 48125 9402100147 940210 KEY PRODUCTION PLANS PURCHASE DENVER KEY PRODUCTION CO SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE 23 MILLION OF OIL AND NATURALGAS PROPERTIES FROM A SELLER THAT WASN'T IDENTIFIED THE ENERGY CONCERN SAID THE PRODUCING PROPERTIES LOCATED PRIMARILY IN WYOMING AND UTAH AND SEVERAL ROCKY MOUNTAINS BASINS WOULD ADD ABOUT 26 MILLION BARRELS OF OIL AND EIGHT BILLION CUBIC FEET OF NATURAL GAS TO KEY PRODUCTION'S RESERVES OF ROUGHLY 15 MILLION BARRELS OF OIL AND 287 BILLION CUBIC FEET OF NATURAL GAS KEY PRODUCTION SAID THE AGREEMENT IS SUBJECT TO NEGOTIATION OF A BINDING PURCHASE AND SALE AGREEMENT AND LIKELY WILL BE COMPLETED IN MAY 9402100146 940210 MCDERMOTT'S EGYPTIAN CONTRACT NEW ORLEANS MCDERMOTT INTERNATIONAL INC SAID A UNIT WILL RECEIVE ABOUT 80 MILLION OF A 112 MILLION CONTRACT AWARDED BY AN EGYPTIAN UTILITY MCDERMOTT SAID BABCOCK & WILCOX CO THE ENERGY SERVICES COMPANY'S MAJOR OPERATING UNIT LEADS THE CONSORTIUM THAT WILL BUILD A BOILER ISLAND FOR THE EGYPTIAN ELECTRIC AUTHORITY'S NEW POWER STATION SOUTH OF CAIRO AN ITALIAN CONSTRUCTION COMPANY NUOVA CIMIMONTUBI IS ALSO A MEMBER OF THE CONSORTIUM 9402100145 940210 WHO'S NEWS STANDISH CARE CO STANDISH CARE CO BOSTON MICHAEL J DOYLE PRESIDENT AND CHIEF EXECUTIVE WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR DOYLE 35 YEARS OLD SUCCEEDS C JOEL GLOVSKY 60 WHO WILL SERVE AS VICE CHAIRMAN AND EXECUTIVE VICE PRESIDENT STANDISH CARE IS A HEALTHCARE SERVICES CONCERN THAT PROVIDES HOUSING FOR FRAIL SENIOR CITIZENS 9402100144 940210 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC JOSEPH A APRILE 49 YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT OF CANTEEN CORP'S FOOD AND VENDING DIVISION MR APRILE WAS FORMERLY PRESIDENT OF THE EASTERN DIVISION OF CANTEEN THE CONTRACT FOODSERVICE DIVISION OF FLAGSTAR 9402100143 940210 WHO'S NEWS CARLISLE PLASTICS INC CARLISLE PLASTICS INC BOSTON DAVID E WILBUR JR WAS NAMED TO THE NEW POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER MR WILBUR 51 YEARS OLD WAS FORMERLY PRESIDENT OF CARLISLE PLASTIC'S FILMPRODUCTS GROUP WILLIAM H BINNIE WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF THE MAKER OF PLASTIC HANGERS AND OTHER PRODUCTS 9402100142 940210 DIVIDEND NEWS US HEALTHCARE INC US HEALTHCARE INC BLUE BELL PA INCREASED ITS QUARTERLY DIVIDEND TO 20 CENTS A COMMON SHARE FROM 16 CENTS PAYABLE MARCH 22 TO STOCK OF RECORD MARCH 8 THE COMPANY ALSO RAISED THE DIVIDEND ON ITS CLASS B SHARES TO 18 CENTS A SHARE FROM 144 CENTS US HEALTHCARE PROVIDES MANAGED HEALTHCARE SERVICES 9402100141 940210 FAA TO PROPOSE TOUGHER TRAINING FOR CERTAIN PILOTS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION SAID IT WILL PROPOSE HOLDING COMMUTER AIRLINES TO THE SAME PILOTTRAINING STANDARDS AS LARGE AIRLINES THE ANNOUNCEMENT CAME DURING A HOUSE HEARING THAT WAS PROMPTED BY TWO RECENT FATAL CRASHES OF TURBOPROP PLANES THE FAA HAS BEEN CRITICIZED FOR APPLYING LESSSTRINGENT STANDARDS FOR COMMUTER AIRLINES' EQUIPMENT AND PILOTS ADMINISTRATOR DAVID HINSON TOLD LAWMAKERS YESTERDAY THE AGENCY IS WORKING TO NARROW THE GAP THE NEW PILOTTRAINING RULES ARE STILL BEING DRAFTED AND PROBABLY WON'T TAKE EFFECT FOR AT LEAST 18 MONTHS THEY WOULD REQUIRE PILOTS OF ALL AIRPLANES WITH 10 OR MORE SEATS TO BE TRAINED THE SAME WAY ACCORDING TO ANTHONY BRODERICK THE FAA'S ASSOCIATE ADMINISTRATOR FOR REGULATION AND CERTIFICATION CURRENTLY ALL AIRLINE PILOTS HAVE TO PASS THE SAME CERTIFICATION TESTS BUT THOSE FLYING AIRPLANES WITH 30 SEATS OR LESS HAVE LESSDETAILED TRAINING GUIDELINES THE FAA SAID BUT WALTER COLEMAN PRESIDENT OF THE REGIONAL AIRLINE ASSOCIATION SAID THE COMMUTER AIRLINES HIS GROUP REPRESENTS ALREADY HAVE NARROWED THEIR TRAINING GAP WITH LARGE AIRLINES IN FACT HE SAID SOME COMMUTER AIRLINES ALREADY HAVE GAINED PERMISSION FROM THE FAA TO FOLLOW LARGEPLANE TRAINING RULES FOR THEIR PILOTS THE FAA ALSO SAID IT IS PURSUING RULES THAT WILL REQUIRE LARGE AND SMALL AIRLINES TO INCLUDE TRAINING PROGRAMS THAT TEACH CREW MEMBERS TO WORK BETTER AS TEAMS ACCORDING TO A PRELIMINARY NATIONAL TRANSPORTATION SAFETY BOARD REPORT THE PILOT OF AN EXPRESS II AIRLINES TURBOPROP FLIGHT THAT CRASHED LAST DEC 1 HAD FAILED FOUR PROFICIENCY TESTS IN FIVE YEARS WAS KNOWN FOR INTIMIDATING COPILOTS AND WAS ANGRY WITH HIS COMPANY THE DAY OF THE CRASH THE SAFETY BOARD IS STILL INVESTIGATING THE ACCIDENT WHICH KILLED 18 PEOPLE INCLUDING THE PILOT IT HASN'T FOUND ANY MECHANICAL EXPLANATIONS EXPRESS II OPERATES AS NORTHWEST AIRLINK 9402100140 940210 TITAN CORP FORMS SUBSIDIARY SAN DIEGO CALIF TITAN CORP SAID IT IS FORMING A SUBSIDIARY CALLED TITAN INFORMATION SYSTEMS TO DEVELOP MAKE AND MARKET COMMERCIAL INFORMATION SYSTEMS THE ELECTRONICS CONCERN SAID IT NAMED FREDERICK L JUDGE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR JUDGE WAS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF HUGHES COMMUNICATIONS INC A UNIT OF GENERAL MOTORS CORP THE COMPANY SAID TITAN INFORMATION SYSTEMS IS BASED IN SAN DIEGO AND CONSOLIDATES TITAN'S COMMERCIAL INFORMATION PRODUCTS AND SYSTEMS BUSINESSES 9402100139 940210 YOUR MONEY MATTERS TEACHERS ARE JUDGES ON RETIREMENT PLANS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL AT FIRST BLUSH ROGER SUMNER AND THE OTHER 25000 PARTICIPANTS IN THE LOS ANGELES SCHOOL DISTRICT'S 403B RETIREMENT SAVINGS PLAN APPEAR TO ENJOY A WEALTH OF INVESTMENT CHOICES THEIR PLAN ALLOWS THEM TO SELECT AMONG 120 DIFFERENT ANNUITIES AND INVESTMENT CONTRACTS EACH WITH ITS OWN MENU OF MUTUAL FUNDS AND OTHER OPTIONS THE TOTAL CHOICES MORE THAN 1000 HUNDREDS OF TIMES THE NUMBER OF ALTERNATIVES TYPICALLY OFFERED TO MEMBERS OF 401K PLANS THE CORPORATE EQUIVALENT TO 403BS BUT INSTEAD OF RIDING HIGH ON HIS PRIVILEGES MR SUMNER FOR ONE IS PLANNING TO JUMP SHIP INTO NOLOAD MUTUAL FUNDS EXCLUDED FROM THE PLAN THE PROBLEM WITH 403BS HE SAYS IS QUALITY NOT QUANTITY AND HE SHOULD KNOW SINCE HE IS THE ASSISTANT CONTRACTS SUPERVISOR FOR THE LOS ANGELES DISTRICT'S 403B DEALING WITH THE INSURERS AND BROKERS WHO PROVIDE THE PLAN'S INVESTMENT SERVICES FEW PARTICIPANTS IN THE LOS ANGELES DISTRICT'S PLAN ARE EQUIPPED TO MAKE SUCH QUALITY JUDGMENTS HOWEVER THAT IS BECAUSE UNLIKE MR SUMNER THEY CAN'T EVEN GET A LIST OF THE NAMES OF THE 120 CONTRACTS THEY MUST CHOOSE FROM LET ALONE DETAILS ABOUT THOSE CONTRACTS' INVESTMENT OPTIONS COSTS TERMS EXIT PENALTIES AND PERFORMANCE RECORDS UNFORTUNATELY WHEN IT COMES TO ADMINISTRATIVE TRUANCY THE LOS ANGELES DISTRICT IS FAR FROM UNIQUE MOST SCHOOL DISTRICTS ACROSS THE COUNTRY TAKE THE SAME HANDSOFF ATTITUDE TOWARD THEIR 403B PLANS TEACHERS' PLANS TEND TO HAVE THE LEAST SUPERVISION OF ANY RETIREMENT PLANS SAYS MICHAEL FOOTER A PRINCIPAL AT BENEFITS CONSULTANT WILLIAM M MERCER IN RICHMOND VA IN THE 401K AREA YOU HAVE A LEGAL OBLIGATION TO LOOK AT THE QUALITY OF THE PRODUCTS OFFERED HE SAYS BUT WITH TEACHERS' PLANS THERE'S NO JUDGMENT MADE ABOUT THE PRODUCTS TO BE SURE THERE ARE SOME NOTABLE EXCEPTIONS SUCH AS THE GIANT TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITY FUND WHICH GET HIGH MARKS NOT ONLY FOR CONSCIENTIOUS ADMINISTRATION BUT ALSO FOR THE LOW COST AND HIGH QUALITY OF THEIR INVESTMENT OPTIONS BUT IN GENERAL EXPERTS CAUTION LAX SUPERVISION IS WIDESPREAD IN THE 403B AREA AND IS ESPECIALLY ACUTE IN PUBLICSCHOOL SYSTEMS SUCH LAXITY IS PERMISSIBLE BECAUSE PUBLICSCHOOL SYSTEMS ARE AMONG THOSE EXEMPT FROM FEDERAL LAWS THAT GOVERN EMPLOYERS' FIDUCIARY DUTIES TOWARD WOULDBE RETIREES THOSE LAWS KNOWN AS THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OR ERISA DICTATE CERTAIN STANDARDS THAT EMPLOYERS MUST MEET IN SCREENING INVESTMENT PROVIDERS AND EDUCATING EMPLOYEES ABOUT THEIR RETIREMENT PLAN WHILE COMPANIES THAT FAIL TO MEET THOSE STANDARDS CAN LAND IN BIG TROUBLE SIMILAR MISDEEDS AT SCHOOL DISTRICTS CHURCHES GOVERNMENT OFFICES AGENCIES AND SOME NONPROFIT ORGANIZATIONS ARE PERFECTLY ACCEPTABLE UNDER THE LAW MEANWHILE ALTHOUGH 90 OF THE COMPANIES THAT PROVIDE INVESTMENTS TO 403BS ARE INSURERS INSURANCE WATCHDOGS USUALLY DON'T POLICE THIS AREA NEITHER DO SECURITIES REGULATORS SINCE THE MUTUAL FUNDS IN 403BS GENERALLY ARE OFFERED THROUGH ANNUITIES FROM INSURANCE COMPANIES COMPOUNDING THE PROBLEM OF ACCOUNTABILITY IS THE FACT THAT SCHOOL SYSTEMS USUALLY LACK THE RESOURCES TO STAFF BENEFITS DEPARTMENTS AND PROPERLY ADMINISTER THEIR PLANS AS A RESULT THE SCHOOL DISTRICTS USUALLY ARE SOLD INVESTMENT PROGRAMS RATHER THAN BEING ABLE TO IDENTIFY WHAT IS A GOOD PRODUCT SAYS MARVIN MERRILL EXECUTIVE VICE PRESIDENT OF THE NATIONAL EDUCATION ASSOCIATION'S MEMBER BENEFITS WHICH OVERSEES SUCH RETIREMENT PLANS WHAT'S MORE SCHOOL DISTRICTS AND OTHER 403B SPONSORS OFTEN RESIST TAKING RESPONSIBILITY FOR THEIR PLANS BECAUSE THAT IS THE BEST WAY TO ENSURE THEY WON'T BE HELD ACCOUNTABLE FOR POTENTIAL BLUNDERS THE PHILOSOPHY OF THE BUREAUCRACY IS IF I DON'T HAVE THE SLIGHTEST IDEA OF WHAT'S GOING ON NO ONE CAN SAY I HAD ANYTHING TO DO WITH IT MR SUMNER SAYS IN THIS FIDUCIARY VACUUM A LOT OF WHAT'S DECIDED IS BASED ON POLITICS NOT WHAT'S THE BEST INVESTMENT SAYS JENNIFER STRICKLAND A CONSULTANT WITH MORNINGSTAR INC A CHICAGO FIRM THAT TRACKS THE PERFORMANCE AND FEES OF VARIABLE ANNUITIES AND MUTUAL FUNDS SUCH LAISSEZFAIR REGULATION MEANS THE 403B SPONSORS RELY HEAVILY ON THE ADVICE OF THE VERY BROKERS AND INSURANCE AGENTS WHO ARE TOUTING INVESTMENT PROGRAMS TO THE PLAN THE UPSHOT IS THAT 403B PLANS TYPICALLY DON'T BUY GOOD INVESTMENT PROGRAMS SAYS MR MERRILL MANY FUNDS IN THE INVESTMENT PROGRAMS HAVE POOR PERFORMANCE AND HIGHER EXPENSES WITH SO LITTLE GUIDANCE TEACHERS AND OTHER SCHOOL DISTRICT EMPLOYEES MUST PRODUCE THEIR OWN REPORT CARD ON THEIR 403B INVESTMENTS FORTUNATELY SINCE MUCH OF THE MONEY IN TEACHERS' 403B PLANS IS INVESTED IN VARIABLE ANNUITIES PARTICIPANTS CAN CONSULT OUTSIDE BENCHMARKS TO SEE HOW THEIR INVESTMENTS COMPARE ON COST AND PERFORMANCE A RESOURCE WITH SUCH INFORMATION IS THE MONTHLY VARIABLE ANNUITY PERFORMANCE REPORT AVAILABLE FOR 15 FROM MORNINGSTAR 8008765005 A VARIABLE ANNUITY IS A GROUP OF MUTUAL FUNDS WRAPPED INTO AN ACCOUNT AT AN INSURANCE COMPANY THE RETURN IS VARIABLE IT DEPENDS ON WHICH FUNDS YOU CHOOSE AND HOW WELL THEY PERFORM BY CONTRAST FIXED ANNUITIES PAY A SET RATE OF RETURN FOR SOME PERIOD SIMILAR TO A CERTIFICATE OF DEPOSIT BUT WITH A HIGHER RATE BECAUSE VARIABLE ANNUITIES ARE ESSENTIALLY MUTUAL FUNDS EACH FUND CAN EASILY BE GRADED AGAINST FUNDS WITH SIMILAR INVESTMENT OBJECTIVES FEES AND OTHER COSTS CAN BE COMPARED THE SAME WAY THE GOOD NEWS FOR PUBLICSCHOOL EMPLOYEES WITH LOUSY INVESTMENT CHOICES IS THAT THEY CAN TRANSFER THEIR MONEY OUT OF THE PLAN INTO NOLOAD FUNDS OR INSURANCE COMPANY ANNUITIES OF THEIR CHOICE EVEN IF THESE CHOICES AREN'T ON THE LIST THAT THEIR SCHOOL DISTRICT APPROVES AND EVEN IF THEY DON'T CHANGE JOBS THIS LITTLEKNOWN RIGHT IS COVERED BY A 1990 IRS REVENUE RULING 9024 EXPLAINS MERCER'S MICHAEL FOOTER TO MAKE A TAXFREE TRANSFER YOU MERELY CONTACT THE MUTUALFUND COMPANY OR BROKERAGE FIRM THAT HAS 403B CUSTODIAL TRANSFER ACCOUNTS IT WILL SEND YOU AN APPLICATION AND ARRANGE THE TRANSFER THERE ARE SOME CAVEATS HOWEVER YOU CAN TRANSFER ONLY ACCUMULATED SAVINGS AND MAY HAVE TO PAY SURRENDER PENALTIES TO GET OUT OF YOUR EXISTING ANNUITIES AND IF YOU MOVE YOUR MONEY INTO MUTUAL FUNDS YOU MAY NOT BE ABLE TO TAKE OUT LOANS ON THE MONEY SOMETHING MOST 403B ANNUITIES ALLOW YOU ALSO MAY GET SOME RESISTANCE FROM YOUR EMPLOYER OR INSURANCE COMPANY MANY AREN'T AWARE THAT SUCH TRANSFERS ARE LEGAL NOT ONLY FOR TEACHERS BUT ALSO FOR A NUMBER OF EMPLOYEES AT NONPROFIT ORGANIZATIONS SMITA VASAVADA A SOCIAL WORKER IN LONGVIEW TEXAS FACED SUCH OPPOSITION WHEN SHE TRIED TO TRANSFER HER MONEY FROM AN ANNUITY WITH GREAT WEST LIFE & ANNUITY CO THE INSURER TOLD HER THE MOVE WASN'T POSSIBLE BUT FINALLY CONCURRED WHEN SHE PERSISTED MRS VASAVADA PLANS TO MOVE HER MONEY TO A 403B ACCOUNT WITH VANGUARD GROUP A NOLOAD MUTUAL FUND COMPANY EVEN THOUGH SHE WILL PAY SOME SURRENDER PENALTIES 9402100138 940210 PACIFIC TELESIS CONTRACT SACRAMENTO CALIF CALIFORNIA'S DEPARTMENT OF GENERAL SERVICES SIGNED A THREEYEAR MASTER CONTRACT WITH PACIFIC TELESIS GROUP UNIT PACIFIC BELL COMPRESSION LABS INC AND TELEIMAGES INC FOR VIDEOCONFERENCING EQUIPMENT NETWORK AND SYSTEM INTEGRATION SERVICES TRAINING AND MAINTENANCE PACIFIC BELL SAID THE CONTRACT COULD BE WORTH AS MUCH AS 10 MILLION DEPENDING ON HOW QUICKLY THE NETWORK GROWS AND THE NUMBER OF SYSTEMS THE STATE BUYS 9402100137 940210 FEDERATED HAS AN EDGE IN TAKEOVER BATTLE WITH MACY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF THERE IS A BETTER DEAL ANYWHERE THAN MACY'S CASHMEREBLEND SWEATERS ON SALE FOR 34 THAT BARGAIN HAS TO BE MACY ITSELF SO BELIEVES FEDERATED DEPARTMENT STORES INC WHICH OWNS BLOOMINGDALE'S LAZARUS BURDINES RICH'S A&S AND JORDAN MARSH AND NOW IS TRYING TO GOBBLE RH MACY & CO RIGHT OUT OF BANKRUPTCY COURT BARELY A MONTH HAS PASSED SINCE FEDERATED ANNOUNCED IT BOUGHT CONTROL OF A CRITICAL PIECE OF ITS STRAPPED RIVAL'S DEBT FOR A MERE 1093 MILLION IN CASH UP FRONT DESPITE A PUBLIC CEASEFIRE FEDERATED IS STILL STALKING A RELUCTANT MACY BEHIND THE SCENES I GIVE THEM A 9IN10 CHANCE OF NABBING MACY SAYS DAVID MILLISON HEAD OF BANKRUPTCY RESEARCH AT DABNEY/RESNICK A LOS ANGELES INVESTMENT FIRM FEDERATED'S SUCCESS DEPENDS AS MUCH ON THE RETAILER'S BRAZEN AND INNOVATIVE EXPLOITATION OF BANKRUPTCY LAW AS IT DOES ON THE GROWING REALIZATION AMONG MACY'S MANAGEMENT AND CREDITORS OF MACY'S PRECARIOUS FINANCIAL POSITION WITH 6 BILLION OF DEBT MACY HAS LITTLE HOPE OF REPAYING ANY BUT ITS MOST SENIOR CREDITORS BANKRUPTCY HAS ALREADY BECOME A FORM OF TAKEOVER FOR FINANCIAL SPECULATORS SAYS HUGH RAY A BANKRUPTCY LAWYER WITH ANDREWS & KURTH NOW IT COULD BE THE COMPANIES' TURN BUT FEDERATED'S HIGHSTAKES GAME ISN'T RISKFREE MACY'S MOST POWERFUL ALLY MAY PROVE TO BE FEDERAL BANKRUPTCY JUDGE BURTON LIFLAND WIDELY VIEWED AS A PRODEBTOR JURIST HE HAS THE POWER TO STRIP AWAY FEDERATED'S RIGHT TO VOTE ITS STAKE AND FOR ALMOST ANY REASON SUCH AS IF HE DECIDED FEDERATED HAD A CONFLICT OF INTEREST AS A MACY'S CREDITOR AND COMPETITOR A LOOK AT FEDERATED'S RAID ON MACY SUGGESTS HOW A TAKEOVER WAR CAN BE FOUGHT FAR FROM THE SPOTLIGHT OF PUBLIC MARKETS IN THE DIM RECESSES OF THE COURTS WHERE HOBBLED COMPANIES SEEK REFUGE VETERAN BANKRUPTCY INVESTORS SAY FEDERATED CHAIRMAN ALLEN QUESTROM AND HIS CHIEF STRATEGIST CHIEF FINANCIAL OFFICER RONALD TYSOE HAVE IGNITED A SLOWMOTION TAKEOVER THAT COULD LAST UNTIL YEAR END BUT WHATEVER HAPPENS TO MACY THEY BELIEVE FEDERATED WILL EMERGE A FINANCIAL WINNER MR TYSOE WHO SPEARHEADED FEDERATED'S LIGHTNINGFAST EMERGENCE FROM BANKRUPTCY COURT TWO YEARS AGO ISN'T ONE TO LET DETAILS GET IN THE WAY OF A GOOD MOVE LAST SUMMER DESPITE A HUNDREDDEGREE HEAT WAVE HE PACKED UP HIS HOUSE HIMSELF TO MOVE HIS FAMILY INTO A SPRAWLING NEW HOME IN A CINCINNATI SUBURB HE APPROACHED PRUDENTIAL INSURANCE CO OF AMERICA WITH LIKE DETERMINATION LAST SUMMER MR TYSOE WAS NO STRANGER TO PRUDENTIAL FEDERATED WAS THE INSURER'S SECONDLARGEST RETAIL BORROWER AND PRUDENTIAL HAD HELD 7 OF THE CINCINNATI RETAILER'S STOCK THE INSURER WELCOMED HIS OVERTURES PRUDENTIAL HADN'T RECEIVED A CENT ON ITS 8325 MILLION LOAN TO MACY SINCE ITS LARGEST RETAILING BORROWER FILED FOR BANKRUPTCYCOURT PROTECTION IN JANUARY 1992 AND TOUGH NEW CAPITAL RULES FOR INSURERS WERE MAKING IT HARD TO KEEP A LOAN LIKE MACY'S ON THE BOOKS AT FACE VALUE IN NEGOTIATIONS THAT STRETCHED INTO DECEMBER MR TYSOE HAMMERED OUT AN UNUSUAL SOLUTION FEDERATED AGREED TO BUY HALF OF PRUDENTIAL'S CLAIMPAYING ONLY ONEFOURTH UP FRONT WITH THE REMAINING 340 MILLION DUE OVER THREE YEARS WITH AN OPTION ON THE OTHER HALF OF THE DEBT LATER ON IN ONE STROKE FEDERATED GAINED CONTROL OF A 1 BILLION CLAIM SECURED BY MACY'S 70 BEST STORES INCLUDING HERALD SQUARE THAT PUTS FEDERATED FIRST IN LINE TO BE REPAID FEDERATED GOT A BARGAIN IT IS PAYING ONLY 86 CENTS ON THE DOLLAR LESS THAN PRUDENTIAL EXPECTED TO GET BACK FROM MACY AT THE END OF THE BANKRUPTCYCOURT PROCEEDING DESPITE THE LOAN'S TOPNOTCH COLLATERAL PRUDENTIAL EVEN AGREED TO LEND FEDERATED THE MONEY FOR ITS STAKE AT AN INTEREST RATE SO FAVORABLE THAT FEDERATED IS GUARANTEED TO BE PAID ABOUT 32 MILLION A YEAR THROUGH THE END OF THE BANKRUPTCYCOURT PROCEEDING BUT THE INSURER WAS CONTENT IT TURNED A NONPERFORMING LOAN INTO A GOOD ONE AND BOOKED A 30 MILLION PROFIT TO BOOT THIS COUP TRANSFORMS MR QUESTROM A FLAMBOYANT MERCHANT WHO ONCE POSED WITH HIS WIFE IN BLACK TIE IN BLOOMINGDALE'S WINDOW WHEN FEDERATED WAS STILL IN BANKRUPTCYCOURT PROCEEDING INTO THE FIRST CORPORATE CHIEFTAIN TO JOIN THE BRASSKNUCKLE CROWD KNOWN AS VULTURE INVESTORS VULTURES GRAB CONTROL OF THE MOST POWERFUL PIECE OF DEBT WREST CONTROL FROM THEIR PREY AND BLOCK ANY REORGANIZATION THEY DON'T LIKE SUCCESSFUL VULTURE INVESTORS SUCH AS APOLLO ADVISORS AND TRUST CO OF THE WEST HAVE USED THAT STRATEGY TO GAIN CONTROL OF DOZENS OF COMPANIES MR QUESTROM'S EMPIREBUILDING RESTS ON PRUDENTIAL'S CONTROLLING BLOCK OF DEBT WITH IT FEDERATED HAS A HUGE ADVANTAGE IT IS UNLIKELY ANOTHER BIDDER WILL EMERGE BECAUSE FEDERATED CAN VETO ANY PLAN IT DOESN'T LIKE UNLESS IT GETS PAID OFF FULLY INCLUDING INTEREST TO UNSEAT FEDERATED MACY OR AN OUTSIDE BIDDER WOULD LIKELY HAVE TO COME UP WITH THE FULL 1 BILLION IN CASH OR STOCK FEDERATED IS CERTAINLY IN THE DRIVER'S SEAT SAYS BANKRUPTCY INVESTOR MARK DICKSTEIN OF DICKSTEIN PARTNERS & CO WHO SAYS HE ISN'T AN INVESTOR IN MACY DEBT THEY CAN DICTATE THE TERMS OF ALMOST ANY PLAN FURTHER FEDERATED CAN HUNT ITS QUARRY WITH THE SAME STEALTH TACTICS OTHER BANKRUPTCY RAIDERS USE UNLIKE IN THE STOCK MARKET WHERE MOST TAKEOVERS HAPPEN BANKRUPTCY COURT IS NOT A LEVEL PLAYING FIELD SECURED CREDITORS SUCH AS FEDERATED ARE FIRST IN LINE TO GET THEIR LOAN REPAID AND CAN OFTEN MUSCLE IN TO SEIZE LARGE CHUNKS OF THE POSTBANKRUPTCY COMPANY'S NEW STOCK MOREOVER THE DEBT FEDERATED BOUGHT ISN'T SUBJECT TO THE SAME SECURITIES REGULATIONS AS PUBLIC STOCKHOLDINGS SO FEDERATED CAN BUILD ALLIANCES WITH OTHER CREDITORS WITHOUT DISCLOSING ITS INTENT OR POSITION BUT FEDERATED CAN'T RISK ALIENATING JUDGE LIFLAND THAT IS WHY MR QUESTROM AND MR TYSOE HAVE KEPT MUM ABOUT THEIR STRATEGY IN MEETINGS WITH OTHER CREDITORS SINCE JANUARY FEDERATED WILL OUTLINE THE VALUE OF A COMBINED COMPANY IN A MEETING WITH SECURED CREDITORS ON TUESDAY FEDERATED EXECUTIVES ARE BEING VERY SMART ABOUT BENDING OVER BACKWARDS TO BE ABLE TO PROVE IN COURT THAT THEY HAVE NOT ABUSED THEIR POSITION SAYS MR RAY WHO ISN'T INVOLVED IN THE TAKEOVER CONTEST FEDERATED'S BIGGEST EDGE MAY COME FROM THE GROWING REALIZATION BY MACY'S MANAGEMENT OF THE COMPANY'S FINANCIAL STATUS AT THE SAME TIME PRUDENTIAL AND FEDERATED BEGAN TALKING MACY WAS EMBARKING ON THE NEXT PHASE OF NEGOTIATIONS WITH ITS CREDITORS TO MOVE THE RETAILER OUT OF BANKRUPTCY COURT AT THE END OF SEPTEMBER MR ULLMAN PUT JAMES KENNEY A 34YEAROLD EXMCKINSEY CONSULTANT IN CHARGE OF SOFTENING UP MACY'S SENIOR CREDITORS THE BANKS AND MORTGAGE LENDERS WITH WHICH THE RETAILER HOPES TO KEEP DOING BUSINESS ONCE IT GETS OUT OF BANKRUPTCY COURT THESE CREDITORS ARE A FORMIDABLE ARRAY MACY OWES MONEY TO AMONG OTHERS TRUST CO OF THE WEST AND A WORKINGCAPITAL BANK SYNDICATE INCLUDING CHEMICAL BANKING CREDIT LYONNAIS OF FRANCE AND MITSUBISHI BANK LTD BUT THE MOST POWERFUL CREDITOR SECOND ONLY TO PRUDENTIAL IS FIDELITY INVESTMENTS THE MUTUALFUND COMPANY THAT AGGRESSIVELY BOUGHT UP BANK DEBT TO ACCUMULATE A 490 MILLION CLAIM THE NEWS MR KENNEY HAD TO IMPART TO THEM WAS BLEAK ACCORDING TO PEOPLE WHO SAT IN ON THE TALKS HE TOLD THEM MACY'S BUSINESS WAS LIKELY TO CONTINUE DOING SO POORLY THAT THE RETAILER WOULDN'T BE ABLE TO CARRY MUCH MORE THAN 1 BILLION OF DEBT THIS MEANT THE SECURED CREDITORS WHO WERE OWED ABOUT 24 BILLION IN PRINCIPAL AND INTEREST WOULD HAVE TO TAKE MUCH OF THEIR RECOVERY IN STOCK HOW MUCH STOCK FEDERATED AND THE OTHER SENIOR CREDITORS CAN GET DEPENDS ON WHAT MACY IS WORTH ORDINARILY A WOUNDED QUARRY LIKE MACY WOULD WANT TO FEND OFF ITS PREDATOR BY PAYING OFF THE DEBT FEDERATED OWNS AND SHOWING THE SUITOR THE DOOR BUT TO GET RID OF FEDERATED MACY WOULD HAVE TO COME UP WITH 1 BILLION OR ANOTHER 12 LOAN ON SECURITY AS GOOD AS ITS BEST STORES OPTIONS IT CANNOT AFFORD PEOPLE PRESENT FOR THE FALL MEETINGS BETWEEN MACY AND ITS LENDERS SAY MACY'S FINANCIAL ADVISER BLACKSTONE GROUP TOLD CREDITORS THAT THE RETAILER IS WORTH BETWEEN 31 BILLION AND 35 BILLION BUT PROBABLY NOT MORE THAN 33 BILLION THE REALITY IS THAT THERE IS NOT ENOUGH VALUE HERE SAYS A PERSON FAMILIAR WITH THE TALKS THE LONGER IT TAKES MACY TO WIN OVER CREDITORS THE MORE VALUE THE SENIOR SECURED LENDERS SUCH AS FEDERATED WILL RECEIVE THAT'S BECAUSE PRUDENTIAL FIDELITY AND THE BANKS ARE ENTITLED TO RECEIVE INTEREST ON THEIR CLAIMS BEFORE MACY'S BONDHOLDERS WHO ARE OWED 13 BILLION GET ONE CENT SO FEDERATED CAN AFFORD TO LIE IN WAIT AS INTEREST BUILDS UP ON ITS CLAIM THIS POSES A BIG PROBLEM FOR MACY'S MANAGEMENT MACY'S BEST CHANCE OF STAYING INDEPENDENT IS IF IT CAN PERSUADE ALL CREDITORS TO AGREE TO A CONSENSUAL PLAN INSTEAD OF FIGHTING ITS WAY OUT OF COURT BUT THE ONLY WAY TO PROVIDE BONDHOLDERS WITH MUCH OF A RECOVERY IS TO TAKE A PIECE OF THE PIE AWAY FROM SECURED CREDITORS THAT'S WHAT MR KENNEY SET OUT TO DO BUT MACY UNDERESTIMATED ITS POWERFUL CREDITORS THE SAME PEOPLE FEDERATED WILL HAVE TO SWAY IN MIDFALL CONVERSATIONS WITH PRUDENTIAL AND THE SOCALLED 49STORE SYNDICATE BANK DEBT NOW OWNED ALMOST ENTIRELY BY FIDELITY INVESTMENTS MR KENNEY VALUED THE STORES AS IF THEY WERE HELD NOT BY MACY BUT BY A THIRD PARTY TO DRIVE DOWN THE PROPERTIES' VALUE THAT WOULD MEAN THE LENDERS WOULD HAVE TO STAND IN LINE WITH UNSECURED BONDHOLDERS TO GET THE LAST PART OF THEIR RECOVERY PRUDENTIAL AND FIDELITY BALKED THEY TOLD MR KENNEY IN NO UNCERTAIN TERMS THAT IF THE COMPANY WANTED TO STAY INDEPENDENT IT WOULD HAVE TO ASSIGN ALL ITS PROPERTY THE HIGH VALUE IT WAS REALLY WORTH SINCE DECEMBER MACY'S MANAGEMENT HAS BEEN SHIFTING GEARS BANKRUPTCY INVESTORS SPECULATE THAT MACY MANAGEMENT WILL TRY TO STRIKE AN ALLIANCE WITH FIDELITY ALIGNED WITH FIDELITY MACY COULD MUSTER THE FINANCIAL WHEREWITHAL TO NEUTRALIZE FEDERATED BY OFFERING THE RETAILER NEW DEBT AND DISTRIBUTING THE BULK OF ITS STOCK TO THE MUTUALFUND GIANT AND OTHER SECURED CREDITORS THAT MOVE COULD SPELL BAD NEWS FOR BONDHOLDERS MACY'S TACTICAL REVERSAL MAY INDICATE THAT THE COMPANY IS RETHINKING ITS STRATEGY OF FORGING A CONSENSUAL PLAN IT ALSO INCREASES THE LIKELIHOOD OF A SOCALLED CRAMDOWN A PLAN OF REORGANIZATION THAT WOULD DISTRIBUTE LITTLE TO JUNIOR CREDITORS OVER THEIR OBJECTIONS IF SENIOR CREDITORS CAN SHOW THAT THERE IS NOT ENOUGH VALUE TO GO AROUND ROBERT MILLER OF BERLACK ISRAELS & LIBERMAN WHO REPRESENTS THE BONDHOLDERS' COMMITTEE CALLS ANY SUGGESTION OF A CRAMDOWN IRRESPONSIBLE MACY IS PUTTING ON THE BRAKES RATHER THAN PRESS FORWARD WITH A PLAN OF REORGANIZATION AS MANY CREDITORS EXPECTED MACY WILL ASK THE BANKRUPTCY COURT TO EXTEND ITS EXCLUSIVE RIGHT TO PROPOSE SUCH A PLAN IN AN UNUSUAL HEARING SCHEDULED FOR FEB 22